Exhibit 99.1

Hanmi Reports Strong Loan and Deposit Growth for First Quarter 2017

2017 First Quarter Highlights:        

LOS ANGELES, April 18, 2017 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ:HAFC) (or “Hanmi”), the parent company of Hanmi Bank (the “Bank”) today reported net income for the 2017 first quarter of $13.8 million or $0.43 per diluted share, compared with $14.4 million, or $0.45 per diluted share for the 2016 fourth quarter and $14.8 million, or $0.46 per diluted share for the 2016 first quarter.

Mr. C. G. Kum, President and Chief Executive Officer, said, “Hanmi’s first quarter results represent a good start to the year with strong loan and deposit growth, improving asset quality and a successful debt capital raise.  Robust origination activity drove loans receivable 10% higher on an annualized basis in the first quarter and up more than 19% from a year ago, while net interest income grew nearly 10% year-over-year.  During the quarter we continued to benefit from our C&I lending efforts with solid performance from our Commercial Equipment Leasing division.  Importantly, credit quality remained excellent with nonperforming assets declining to 36 basis points of total assets and net recoveries in the quarter of $803,000. In addition, I continue to be very pleased with our deposit franchise, and in particular, the strength of our retail branch network as our money market and savings balances grew more than 15% in the quarter.  As a result, total deposits increased nearly 29% on an annualized basis in the quarter and 17% compared to last year.”

Mr. Kum concluded, “During the quarter we successfully completed a public offering and sale of $100 million of subordinated notes that qualify as regulatory capital. The offering was significantly over-subscribed reflecting investors’ confidence in the Hanmi franchise. This further strengthens our total risk-based capital position and will support our continued loan growth in 2017 and beyond.”

Quarterly Highlights
(In thousands, except per share data)

  For the Three Months Ended  Amount Change 
 March 31, December 31, September 30, June 30, March 31, Q1-17 Q1-17 
  2017  2016  2016  2016  2016 vs. Q4-16 vs. Q1-16 
               
Net income$  13,783  $  14,416  $  13,121  $  14,148  $  14,804  $  (633) $  (1,021) 
Net income per diluted common share$  0.43  $  0.45  $  0.41  $  0.44  $  0.46  $  (0.02) $  (0.03) 
               
Assets$  4,811,821  $  4,701,346  $  4,402,180  $  4,441,333  $  4,310,748  $  110,475  $  501,073  
Loans and leases receivable$  3,943,951  $  3,844,769  $  3,552,659  $  3,449,310  $  3,306,479  $  99,182  $  637,472  
Deposits$  4,083,165  $  3,809,737  $  3,771,207  $  3,589,289  $  3,499,992  $  273,428  $  583,173  
               
Return on average assets 1.18%  1.26%  1.19%  1.32%  1.41%  -0.08%  -0.23% 
Return on average stockholders' equity 10.46%  10.84%  9.88%  10.98%  11.92%  -0.38%  -1.46% 
               
Net interest margin (1) 3.89%  3.96%  3.86%  4.02%  3.98%  -0.07%  -0.09% 
Net interest margin excluding acquisition accounting (1) 3.85%  3.86%  3.75%  3.84%  3.68%  -0.01%  0.17% 
Efficiency ratio 54.95%  51.77%  58.72%  56.46%  57.25%  3.18%  -2.30% 
Efficiency ratio excluding merger and integration costs 55.01%  51.15%  58.72%  56.46%  57.25%  3.86%  -2.24% 
               
Tangible common equity to tangible assets (2) 10.98%  11.05%  12.04%  11.79%  11.82%  -0.07%  -0.84% 
Tangible common equity per common share (2)$  16.26  $  16.03  $  16.42  $  16.23  $  15.79  $  0.23  $  0.47  
               
(1)  Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.  
(2)  Refer to "Non-GAAP Financial Measures" for further details.
 
  

Results of Operations 
First quarter net interest income increased 0.7% to $42.4 million from $42.1 million in the fourth quarter primarily from the solid expansion of loans and leases receivable, partially offset by an increase in deposit and borrowing interest expense. Average money market and savings deposits increased 7.8% and average borrowings increased 54.9%.  During the quarter, Hanmi issued $100 million of 10-year subordinated notes effective March 22, 2017 at a fixed rate of 5.45% for the first five years, and a floating rate of three-month LIBOR plus 3.315% thereafter.

  As of or For the Three Months Ended (in thousands)  Percentage Change
 March 31,  December 31, September 30, June 30, March 31, Q1-17 Q1-17
Net Interest Income 2017  2016  2016  2016  2016 vs. Q4-16 vs. Q1-16
              
Interest and fees on loans and leases(1)$  45,378 $  43,780 $  41,150 $  40,645 $  39,067 3.7% 16.2%
Interest on securities   2,520    2,550    2,701    2,886    3,017 -1.2% -16.5%
Dividends on FRB and FHLB stock   374    927    419    579    542 -59.7% -31.0%
Interest on deposits in other banks   77    55    55    49    48 40.0% 60.4%
Total interest and dividend income$  48,349 $  47,312 $  44,325 $  44,159 $  42,674 2.2% 13.3%
              
Interest on deposits   5,154    4,799    4,358    3,684    3,727 7.4% 38.3%
Interest on borrowings   468    207    179    299    195 126.1% 140.0%
Interest on subordinated debentures   373    241    206    196    183 54.8% 103.8%
Total interest expense   5,995    5,247    4,743    4,179    4,105 14.3% 46.0%
Net interest income$  42,354 $  42,065 $  39,582 $  39,980 $  38,569 0.7% 9.8%
              
(1)  Includes loans held for sale.
              

Net interest margin (on a taxable equivalent basis) for the first quarter of 2017 was 3.89% compared with 3.96% for the fourth quarter of 2016. The decrease in net interest margin for the first quarter compared with the preceding quarter was primarily due to the 2016 fourth quarter special FHLB dividend of $559,000.

  For the Three Months Ended (in thousands)  Percentage Change 
 March 31, December 31, September 30, June 30, March 31, Q1-17 Q1-17 
Average Earning Assets and Interest-bearing Liabilities 2017  2016  2016  2016  2016 vs. Q4-16 vs. Q1-16 
Loans (1)$3,881,686 $3,690,955 $  3,477,428 $3,328,416 $3,192,832 5.2% 21.6% 
Securities   526,549    530,241    589,832    657,756    682,370 -0.7% -22.8% 
FRB and FHLB stock   16,385    16,385    19,207    30,808    30,497 0.0% -46.3% 
Interest-bearing deposits in other banks   38,600    40,548    43,678    38,598    44,089 -4.8% -12.4% 
Average interest-earning assets$4,463,220 $4,278,129 $  4,130,145 $4,055,578 $3,949,788 4.3% 13.0% 
               
Demand: interest-bearing$  97,602 $  95,399 $  93,852 $  96,397 $  95,560 2.3% 2.1% 
Money market and savings   1,406,903    1,305,565    1,141,747    944,355    902,037 7.8% 56.0% 
Time deposits   1,173,184    1,165,828    1,244,127    1,268,127    1,346,567 0.6% -12.9% 
Average interest-bearing deposits   2,677,689    2,566,792    2,479,726    2,308,879    2,344,164 4.3% 14.2% 
Borrowings   270,500    174,674    152,935    278,077    181,868 54.9% 48.7% 
Subordinated debentures   30,950    18,919    18,844    18,781    18,722 63.6% 65.3% 
Average interest-bearing liabilities$2,979,139 $2,760,385 $  2,651,505 $2,605,737 $2,544,754 7.9% 17.1% 
               
(1)  Includes loans held for sale. 


  For the Three Months Ended  Percentage Change
 March 31, December 31, September 30, June 30, March 31, Q1-17 Q1-17
Average Yields and Rates2017 2016 2016 2016 2016 vs. Q4-16 vs. Q1-16
Loans (1)4.74% 4.72% 4.71% 4.91% 4.92% 0.0% -0.2%
Securities (2)2.30% 2.31% 2.18% 2.07% 2.07% 0.0% 0.2%
FRB and FHLB stock9.26% 22.63% 8.73% 7.52% 7.11% -13.4% 2.2%
Interest-bearing deposits in other banks0.81% 0.54% 0.50% 0.51% 0.44% 0.3% 0.4%
Interest-earning assets4.44% 4.45% 4.32% 4.43% 4.40% 0.0% 0.0%
              
Interest-bearing deposits0.78% 0.74% 0.70% 0.64% 0.64% 0.0% 0.1%
Borrowings0.70% 0.47% 0.47% 0.43% 0.43% 0.2% 0.3%
Subordinated debentures4.82% 5.07% 4.35% 4.20% 3.93% -0.3% 0.9%
Interest-bearing liabilities0.82% 0.76% 0.71% 0.65% 0.65% 0.1% 0.2%
              
Net interest margin (taxable equivalent basis)3.89% 3.96% 3.86% 4.02% 3.98% -0.1% -0.1%
              
Cost of deposits0.54% 0.50% 0.47% 0.43% 0.43% 0.0% 0.1%
              
(1)  Includes loans held for sale.
(2)  Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
           

For the first quarter of 2017, Hanmi recorded a negative provision for loan losses of $0.1 million, which was related to Purchased Credit Impaired (“PCI”) loans from the 2014 acquisition. For the prior quarter, the provision for loan losses was $0.2 million.

First quarter noninterest income decreased $0.9 million or 10.5% to $7.2 million from $8.1 million for the fourth quarter of 2016 primarily due to a $1.4 million decrease in disposition gains on PCI loans offset by a $0.7 million increase in other operating income. The increase in other operating income is primarily related to a $0.3 million increase in servicing fee income resulting from lower amortization of servicing assets and liabilities, and a $0.4 million increase associated with upcharge fees. Disposition gains on PCI loans were $0.2 million for the first quarter of 2017, compared with $1.6 million for the prior quarter. PCI loans from the 2014 acquisition were $9.0 million at the end of the first quarter of 2017, down 9.1% from the prior quarter. Gains on sales of SBA loans were $1.5 million for the first quarter 2017, down from $1.8 million from the fourth quarter of 2016 as the volume of SBA loans sold decreased to $19.6 million from $27.8 million for the preceding quarter.

  For the Three Months Ended (in thousands)  Percentage Change 
 March 31, December 31, September 30, June 30, March 31, Q1-17 Q1-17 
Noninterest Income 2017  2016  2016  2016  2016 vs. Q4-16 vs. Q1-16 
Service charges on deposit accounts$  2,528 $  2,599 $  2,883 $  2,898 $  3,001 -2.7% -15.8% 
Trade finance and other service charges and fees   1,047    1,132    992    1,064    1,044 -7.5% 0.3% 
Other operating income   1,726    991    2,348    1,674    1,399 74.2% 23.4% 
Service charges, fees & other   5,301    4,722    6,223    5,636    5,444 12.3% -2.6% 
               
Gain on sale of SBA loans   1,464    1,787    1,616    1,774    858 -18.1% 70.6% 
Disposition gain on PCI loans   183    1,559    789    1,963    659 -88.3% -72.2% 
Net gain on sales of securities   269    -     46    -     -  0.0% 0.0% 
Total noninterest income$  7,217 $  8,068 $  8,674 $  9,373 $  6,961 -10.5% 3.7% 
               

Noninterest expense for the first quarter increased $1.3 million, or 5.0%, to $27.2 million from $26.0 million primarily due to a $0.9 million increase in salaries and employee benefits expenses and a $0.6 million decline in OREO income. Salaries and employee benefits expenses are typically higher in the first quarter due to the seasonal impact of elevated payroll taxes and employee benefits. As a result of the increase in noninterest expense, as well as lower noninterest income, the efficiency ratio increased to 55.0% in the first quarter from 51.8% in the prior quarter.

  For the Three Months Ended (in thousands)  Percentage Change 
 March 31, December 31, September 30, June 30, March 31, Q1-17 Q1-17 
  2017  2016  2016  2016  2016 vs. Q4-16 vs. Q1-16 
Noninterest Expense              
Salaries and benefits$  17,104  $  16,246  $  15,950 $  16,061 $  15,698 5.3% 9.0% 
Occupancy and equipment   3,982     3,641     3,917    3,938    3,496 9.4% 13.9% 
Data processing   1,631     1,455     1,330    1,454    1,436 12.1% 13.6% 
Supplies and communication   635     683     821    709    736 -7.0% -13.7% 
Advertising and promotion   802     1,140     1,153    1,094    522 -29.6% 53.6% 
Other operating expenses   3,218     3,136     5,093    4,424    3,715 2.6% -13.4% 
subtotal   27,372     26,301     28,264    27,680    25,603 4.1% 6.9% 
               
OREO expense (income)   (101)    (658)    73    183    465 -84.7% -121.7% 
Merger and integration costs   (31)    312     -     -     -  -109.9% 0.0% 
Total noninterest expense$  27,240  $  25,955  $  28,337 $  27,863 $  26,068 5.0% 4.5% 
               

Hanmi recorded a provision for income taxes of $8.6 million for the first quarter of 2017, representing an effective tax rate of 38.5%, compared with $9.6 million, representing an effective tax rate of 40.0%, for the preceding quarter and $6.2 million, representing an effective tax rate 29.5% for the first quarter of 2016.  The first quarter of 2016 included a $1.8 million benefit arising from the finalization of the 2014 amended tax returns.

Financial Position
Total assets were $4.81 billion at March 31, 2017, a 2.3% increase from $4.70 billion at December 31, 2016. The increase in total assets was primarily due to an increase in loans and leases receivable.

Loans and leases receivable, before the allowance for loan and lease losses, were $3.95 billion at March 31, 2017, up 2.6% from $3.85 billion at December 31, 2016. The increase in loans and leases from the prior quarter reflects Hanmi’s strong loan production and the acquisition and commencement of the Commercial Equipment Leasing division in the 2016 fourth quarter. Loans held for sale, representing the guaranteed portion of SBA loans, were $8.8 million at March 31, 2017 compared with $9.3 million at the end of the 2016 fourth quarter.

Loans and leases receivable, before the allowance for loan and lease losses, increased 19.5% from $3.31 billion the first quarter last year, primarily due to strong loan production over the last twelve months, as well as last year’s acquisition and commencement of the Commercial Equipment Leasing division. 

               
  As of (in thousands)  Percentage Change 
 March 31, December 31, September 30, June 30, March 31, Q1-17 Q1-17 
  2017  2016  2016  2016  2016 vs. Q4-16 vs. Q1-16 
Loan and Lease Portfolio              
Commercial real estate loans$  2,991,123 $  2,939,608 $  2,880,012 $  2,835,076 $  2,729,527 1.8% 9.6% 
Residential real estate loans   359,152    338,767    330,675    296,496    256,488 6.0% 40.0% 
Commercial and industrial loans   316,284    300,220    319,656    293,073    295,632 5.4% 7.0% 
Lease receivable   259,591    243,294    -     -     -  6.7% 0.0% 
Consumer loans   17,801    22,880    22,316    24,665    24,832 -22.2% -28.3% 
Loans and leases receivable 3,943,951  3,844,769  3,552,659  3,449,310  3,306,479 2.6% 19.3% 
Loans held for sale   8,849    9,316    6,425    12,833    2,583 -5.0% 242.6% 
Total loans$  3,952,800 $  3,854,085 $  3,559,084 $  3,462,143 $  3,309,062 2.6% 19.5% 
               
Acquired Loans(1)              
PCI loans, net of discounts$  8,960 $  9,863 $  15,540 $  15,020 $  19,834 -9.2% -54.8% 
Non-PCI loans, net of discounts   101,062    104,733    108,434    117,750    139,869 -3.5% -27.7% 
Total acquired loans$  110,022 $  114,596 $  123,974 $  132,770 $  159,703 -4.0% -31.1% 
               
(1)  Includes UCB acquired only.              
               

New loan production for the 2017 first quarter was $202.7 million while payoffs were $67.6 million compared with $227.1 million and $82.1 million for the fourth quarter last year. First quarter 2017 new loan production was comprised of $116.2 million of commercial real estate loans, $16.9 million of commercial and industrial loans, $29.7 million of SBA loans, and $0.4 million of consumer loans and $39.5 million of commercial leases. Loan purchases for the 2017 first quarter were $33.6 million, compared with $26.9 million in the fourth quarter of 2016.  For the first quarter of 2017, commercial real estate loans as a percentage of total loans and leases decreased to 75.7% compared with 82.5% for the same period last year.

Deposits increased to $4.08 billion at the end of the 2017 first quarter from $3.81 billion at the end of the preceding quarter. Money market and savings deposits led this growth increasing 15.4%.  Total demand deposits increased 3.1% with non-interest bearing increasing 3.2% and interest-bearing increasing 2.7%.  The loans to deposits ratio at March 31, 2017 declined to 96.6% from 100.9% at December 31, 2016.

Deposits increased 16.7% from $3.50 billion in the first quarter last year, primarily due to the strength of our retail branch network as our money market and savings balance increased 64.7% compared a year ago.

  As of (in thousands)  Percentage Change 
 March 31, December 31, September 30, June 30, March 31, Q1-17 Q1-17 
  2017  2016  2016  2016  2016 vs. Q4-16 vs. Q1-16 
Deposit Portfolio              
Demand: noninterest-bearing$  1,241,272 $  1,203,240 $  1,231,967 $  1,189,528 $  1,172,444 3.2% 5.9% 
Demand: interest-bearing   99,433    96,856    94,272    92,776    99,141 2.7% 0.3% 
Money market and savings   1,534,578    1,329,324    1,242,502    1,023,421    931,915 15.4% 64.7% 
Time deposits of $250,000 or less   731,445    734,383    819,471    891,197    948,346 -0.4% -22.9% 
Time deposits of more than $250,000   476,437    445,934    382,995    392,367    348,146 6.8% 36.8% 
Total deposits$  4,083,165 $  3,809,737 $  3,771,207 $  3,589,289 $  3,499,992 7.2% 16.7% 
               

At March 31, 2017, stockholders’ equity was $539.5 million, compared with $531.0 million at December 31, 2016. Tangible common stockholders’ equity was $526.7 million, or 10.98% of tangible assets, compared with $518.1 million, or 11.05% of tangible assets at December 31, 2016. Tangible book value per share was $16.26, up from $16.03 from the preceding quarter.

Hanmi continues to remain well capitalized, with a Tier 1 risk-based capital ratio of 12.91% and a Total risk-based capital ratio of 16.14% at March 31, 2017, versus 13.02% and 13.86%, respectively, at December 31, 2016.

  As of  Amount Change 
 March 31, December 31, September 30, June 30, March 31, Q1-17 Q1-17 
 2017 2016 2016 2016 2016 vs. Q4-16 vs. Q1-16 
Regulatory Capital ratios (1)              
Hanmi Financial              
Total risk-based capital16.14% 13.86% 14.99% 15.16% 15.37% 2.3% 0.8% 
Tier 1 risk-based capital12.91% 13.02% 13.89% 14.00% 14.15% -0.1% -1.2% 
Common equity tier 1 capital12.53% 12.73% 13.73% 13.85% 13.99% -0.2% -1.5% 
Tier 1 leverage capital ratio11.22% 11.53% 11.68% 11.69% 11.70% -0.3% -0.5% 
Hanmi Bank              
Total risk-based capital15.88% 13.64% 14.61% 14.58% 14.78% 2.2% 1.1% 
Tier 1 risk-based capital15.04% 12.80% 13.50% 13.43% 13.56% 2.2% 1.5% 
Common equity tier 1 capital15.04% 12.80% 13.50% 13.43% 13.56% 2.2% 1.5% 
Tier 1 leverage capital ratio13.08% 11.33% 11.36% 11.21% 11.22% 1.8% 1.9% 
               
(1)  Preliminary ratios for March 31, 2017              
               

Hanmi declared a cash dividend of $0.19 per common share on its common stock in the 2017 first quarter, with the same as the prior quarter. The dividend was paid on February 23, 2017, to stockholders of record as of the close of business on February 7, 2017.

Asset Quality
Nonperforming loans, excluding PCI loans, were $12.8 million at the end of the first quarter of 2017, or 0.32% of loans, compared with $11.4 million at the end of the fourth quarter of 2016, or 0.30% of loans.

OREO was $4.6 million at the end of the first quarter of 2017, down from $7.5 million at the end of the prior quarter. Nonperforming assets were $17.4 million at the end of the first quarter of 2017, or 0.36% of assets, compared with 0.40% of assets at the end of the prior quarter.

Gross charge-offs for the first quarter of 2017 were $186,000, compared with $7.3 million for the preceding quarter. The fourth quarter included a charge-off of a $5.0 million PCI loan from the 2014 acquisition that had been substantially reserved for in prior periods. Recoveries of previously charged-off loans for the first quarter of 2017 were $989,000 compared with $625,000 for the preceding quarter. As a result, there were net recoveries of $803,000 for the first quarter of 2017, compared to net charge-offs of $6.7 million for the preceding quarter.

The allowance for loan and lease losses was $33.2 million as of March 31, 2017, generating an allowance of loan losses to loans receivable ratio of 0.84% the same as at December 31, 2016.

  As of or for the Three Months Ended (in thousands)  Amount Change 
 March 31, December 31, September 30, June 30, March 31, Q1-17 Q1-17 
  2017  2016  2016  2016  2016 vs. Q4-16 vs. Q1-16 
Asset Quality              
Nonperforming assets (1):              
Nonaccrual Non-PCI loans$  12,774  $  11,406  $  10,948  $  12,341  $  16,276  $  1,368  $  (3,502) 
Loans 90 days or more past due and still accruing   -     -     -     -     -     -      -   
Nonperforming Non-PCI loans   12,774     11,406     10,948     12,341     16,276     1,368     (3,502) 
OREO, net   4,636     7,484     10,971     11,846     9,411     (2,848)    (4,775) 
Nonperforming assets$  17,410  $  18,890  $  21,919  $  24,187  $  25,687  $  (1,480) $  (8,277) 
               
Delinquent loans:              
Loans, 30 to 89 days past due and still accruing$  6,273  $  5,718  $  1,066  $  1,517  $  5,974  $  555  $  299  
Delinquent loans to loans 0.16%  0.15%  0.03%  0.04%  0.18%  0.01%  -0.02% 
               
Allowance for loan and lease losses:              
Balance at beginning of period$  32,429  $  38,972  $  39,707  $  41,026  $  42,935      
Loan and lease loss provision (income)   (80)    151     (1,450)    (1,515)    (1,525)     
Net loan charge-offs (recoveries)   (803)    6,694     (715)    (196)    384      
Balance at end of period$  33,152  $  32,429  $  38,972  $  39,707  $  41,026      
               
Asset quality ratios:              
Nonperforming Non-PCI loans to loans (1) 0.32%  0.30%  0.31%  0.36%  0.50%     
Nonperforming assets to assets (1) 0.36%  0.40%  0.50%  0.54%  0.60%     
Net loan charge-offs (recoveries) to average loans (3) -0.08%  0.73%  -0.08%  -0.02%  0.05%     
Allowance for loan losses to loans 0.84%  0.84%  1.10%  1.15%  1.24%     
Allowance for loan losses to nonperforming Non-PCI loans (1) (2) 252.54%  275.80%  305.43%  277.60%  217.38%     
               
Allowance for off-balance sheet items:              
Balance at beginning of period$  1,184  $  1,491  $  1,475  $  1,220  $  986      
Provision (income) for off-balance sheet items   -      (307)    16     255     234      
Balance at end of period$  1,184  $  1,184  $  1,491  $  1,475  $  1,220      
               
(1)  Excludes PCI loans              
(2)  Excludes allowance for loan losses allocated to PCI loans              
(3)  Annualized              
               

Conference Call
Management will host a conference call today, April 18, 2017 at 1:00 p.m. PT (4:00 p.m. ET) to discuss these results. This call will also be broadcast live via the internet. Investment professionals and all current and prospective stockholders are invited to access the live call by dialing 1-877-407-9039 before 1:00 p.m. PT, using access code HANMI. To listen to the call online, either live or archived, visit the Investor Relations page of Hanmi’s website at www.hanmi.com.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 41 full-service branches and 6 loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital plans, strategic alternatives for a possible business combination, merger or sale transaction, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statement. These factors include the following: failure to maintain adequate levels of capital and liquidity to support our operations; the effect of potential future supervisory action against us or Hanmi Bank; general economic and business conditions internationally, nationally and in those areas in which we operate; volatility and deterioration in the credit and equity markets; changes in consumer spending, borrowing and savings habits; availability of capital from private and government sources; demographic changes; competition for loans and deposits and failure to attract or retain loans and deposits; fluctuations in interest rates and a decline in the level of our interest rate spread; risks of natural disasters related to our real estate portfolio; risks associated with Small Business Administration loans; failure to attract or retain key employees; changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums; ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests; ability to identify a suitable strategic partner or to consummate a strategic transaction; adequacy of our allowance for loan and lease losses; credit quality and the effect of credit quality on our provision for loan and lease losses and allowance for loan and lease losses; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to control expenses; and changes in securities markets. In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2016, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.


Hanmi Financial Corporation and Subsidiaries 
Consolidated Balance Sheets (Unaudited) 
(In thousands) 
  
 March 31, December 31, Percentage March 31, Percentage 
  2017  2016 Change  2016 Change 
Assets          
Cash and due from banks$  138,592  $  147,235  -5.9% $  137,464  0.8% 
Securities available for sale, at fair value   548,010     516,964  6.0%    675,032  -18.8% 
Loans held for sale, at the lower of cost or fair value   8,849     9,316  -5.0%    2,583  242.6% 
Loans and leases receivable, net of allowance for loan and lease losses    3,910,799     3,812,340  2.6%    3,265,453  19.8% 
Accrued interest receivable   10,774     10,987  -1.9%    10,626  1.4% 
Customers' liability on acceptances   932     978  -4.7%    2,809  -66.8% 
Servicing assets   10,609     10,564  0.4%    11,452  -7.4% 
Premises and equipment, net   28,350     28,698  -1.2%    30,112  -5.9% 
Goodwill and other intangible assets, net   12,797     12,889  -0.7%    1,619  690.4% 
Federal Home Loan Bank ("FHLB") stock, at cost   16,385     16,385  0.0%    16,385  0.0% 
Federal Reserve Bank ("FRB") stock, at cost   -     -   -     14,423  -100.0% 
Other real estate owned ("OREO"), net   4,636     7,484  -38.1%    9,411  -50.7% 
Income tax asset   40,049     48,047  -16.6%    56,456  -29.1% 
Bank-owned life insurance   49,722     49,440  0.6%    48,612  2.3% 
Prepaid expenses and other assets   31,317     30,019  4.3%    28,311  10.6% 
Total assets$   4,811,821   $   4,701,346   2.3% $   4,310,748   11.6% 
           
Liabilities and Stockholders' Equity          
Liabilities:          
Deposits:          
Noninterest-bearing$  1,241,272  $  1,203,240  3.2% $  1,172,444  5.9% 
Interest-bearing   2,841,893     2,606,497  9.0%    2,327,548  22.1% 
Total deposits   4,083,165     3,809,737  7.2%    3,499,992  16.7% 
Accrued interest payable   2,619     2,567  2.0%    3,249  -19.4% 
Bank's liability on acceptances   932     978  -4.7%    2,809  -66.8% 
FHLB advances   50,000     315,000  -84.1%    250,000  -80.0% 
Subordinated debentures   116,795     18,978  515.4%    18,759  522.6% 
Accrued expenses and other liabilities   18,768     23,061  -18.6%    25,079  -25.2% 
Total liabilities   4,272,279      4,170,321   2.4%    3,799,888   12.4% 
           
Stockholders' equity:          
Common stock   33     33  0.0%    33  0.0% 
Additional paid-in capital   563,151     562,446  0.1%    558,945  0.8% 
Accumulated other comprehensive income (loss)   (1,603)    (2,394) -33.0%    5,364  -129.9% 
Retained earnings   49,395     41,726  18.4%    16,742  195.0% 
Less treasury stock   (71,434)    (70,786) 0.9%    (70,224) 1.7% 
Total stockholders' equity   539,542      531,025   1.6%    510,860   5.6% 
Total liabilities and stockholders' equity$   4,811,821   $   4,701,346   2.3% $   4,310,748   11.6% 
           


Hanmi Financial Corporation and Subsidiaries 
Consolidated Statements of Income (Unaudited) 
(In thousands, except share and per share data) 
  
  Three Months Ended  
 March 31, December 31, Percentage March 31, Percentage 
  2017  2016 Change  2016 Change 
Interest and dividend income:          
Interest and fees on loans$  45,378  $  43,780  3.7% $  39,067  16.2% 
Interest on securities   2,520     2,550  -1.2%    3,017  -16.5% 
Dividends on FRB and FHLB stock   374     927  -59.7%    542  -31.0% 
Interest on deposits in other banks   77     55  40.0%    48  60.4% 
Total interest and dividend income   48,349     47,312  2.2%    42,674  13.3% 
Interest expense:          
Interest on deposits   5,154     4,799  7.4%    3,727  38.3% 
Interest on FHLB advances   468     207  126.1%    195  140.0% 
Interest on subordinated debentures   373     241  54.8%    183  103.8% 
Total interest expense   5,995     5,247  14.3%    4,105  46.0% 
Net interest income before provision for loan and lease losses   42,354     42,065  0.7%    38,569  9.8% 
Loan and lease loss provision (income)   (80)    151  -153.0%    (1,525) -94.8% 
Net interest income after provision for loan and lease losses   42,434     41,914  1.2%    40,094  5.8% 
Noninterest income:          
Service charges on deposit accounts   2,528     2,599  -2.7%    3,001  -15.8% 
Trade finance and other service charges and fees   1,047     1,132  -7.5%    1,044  0.3% 
Gain on sale of Small Business Administration ("SBA") loans   1,464     1,787  -18.1%    858  70.6% 
Disposition gains on Purchased Credit Impaired ("PCI") loans   183     1,559  -88.3%    659  -72.2% 
Net gain on sales of securities   269     -  -     -   -  
Other operating income   1,726     991  74.2%    1,399  23.4% 
Total noninterest income   7,217     8,068  -10.5%    6,961  3.7% 
Noninterest expense:          
Salaries and employee benefits   17,104     16,246  5.3%    15,698  9.0% 
Occupancy and equipment   3,982     3,641  9.4%    3,496  13.9% 
Data processing   1,631     1,455  12.1%    1,436  13.6% 
Professional fees   1,148     1,311  -12.4%    1,464  -21.6% 
Supplies and communications   635     683  -7.0%    736  -13.7% 
Advertising and promotion   802     1,140  -29.6%    522  53.6% 
OREO expense (income)   (101)    (658) -84.7%    465  -121.7% 
Merger and integration costs   (31)    312  -109.9%    -  -  
Other operating expenses   2,070     1,825  13.4%    2,251  -8.0% 
Total noninterest expense   27,240     25,955  5.0%    26,068  4.5% 
Income before provision for income taxes   22,411     24,027  -6.7%    20,987  6.8% 
Income tax expense   8,628     9,611  -10.2%    6,183  39.5% 
Net income$   13,783   $   14,416   -4.4% $   14,804   -6.9% 
            
Basic earnings per share:$  0.43  $  0.45    $  0.46    
Diluted earnings per share:$  0.43  $  0.45    $  0.46    
           
Weighted-average shares outstanding:          
Basic   32,001,766     31,956,822       31,846,371    
Diluted   32,191,458     32,149,625       31,928,103    
Common shares outstanding   32,392,580     32,330,747       32,249,512    
           


Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(In thousands, except ratios)
 
 Three Months Ended 
 March 31, 2017 December 31, 2016 March 31, 2016 
   InterestAverage   InterestAverage   InterestAverage 
 Average Income /Yield / Average Income /Yield / Average Income /Yield / 
 Balance ExpenseRate Balance ExpenseRate Balance ExpenseRate 
Average Assets               
Interest-earning assets:               
Loans (1)$  3,881,686  $  45,3784.74% $  3,690,955  $  43,7804.72% $  3,192,832  $  39,0674.92% 
Securities (2)   526,549     3,0262.30%    530,241     3,0572.31%    682,370     3,5292.07% 
FRB and FHLB stock   16,385     3749.26%    16,385     92722.63%    30,497     5427.11% 
Interest-bearing deposits in other banks   38,600     770.81%    40,548     550.54%    44,089     480.44% 
Total interest-earning assets   4,463,220     48,8554.44%    4,278,129     47,8194.45%    3,949,788     43,1864.40% 
                
Noninterest-earning assets:               
Cash and due from banks   117,802        115,211        114,664     
Allowance for loan and lease losses   (32,842)       (39,235)       (42,519)    
Other assets   190,041        192,001        199,143     
Total noninterest-earning assets   275,001        267,977        271,288     
                
Average total assets$   4,738,221      $   4,546,106      $   4,221,076      
                
Average Liabilities and Stockholders' Equity               
Interest-bearing liabilities:               
Deposits:               
Demand: interest-bearing$  97,602  $  190.08% $  95,399  $  190.08% $  95,560  $  190.08% 
Money market and savings   1,406,903     2,6660.77%    1,305,565     2,3400.71%    902,037     1,0840.48% 
Time deposits   1,173,184     2,4690.85%    1,165,828     2,4400.83%    1,346,567     2,6240.78% 
Total interest-bearing deposits   2,677,689     5,1540.78%    2,566,792     4,7990.74%    2,344,164     3,7270.64% 
FHLB advances   270,500     4680.70%    174,674     2070.47%    181,868     1950.43% 
Subordinated debentures   30,950     3734.82%    18,919     2415.07%    18,722     1833.93% 
Total interest-bearing liabilities   2,979,139     5,9950.82%    2,760,385     5,2470.76%    2,544,754     4,1050.65% 
                
Noninterest-bearing liabilities:               
Demand deposits: noninterest-bearing   1,196,151        1,229,042        1,138,822     
Other liabilities   28,658        27,497        38,031     
Total noninterest-bearing liabilities   1,224,809        1,256,539        1,176,853     
                
Total liabilities   4,203,948        4,016,924        3,721,607     
Stockholders' equity   534,273        529,182        499,469     
                
Average Total liabilities and stockholders' equity$   4,738,221      $   4,546,106      $   4,221,076      
                
Net interest income (taxable equivalent basis) (2)  $   42,860     $   42,572     $   39,081   
                
Cost of deposits   0.54%    0.50%    0.43% 
Net interest spread   3.62%    3.69%    3.75% 
Net interest margin   3.89%    3.96%    3.98% 
                
                
(1)  Includes loans held for sale 
(2)  Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.  
                

Non-GAAP Financial Measures

Acquisition Accounting

Core loan yield, core deposit costs, net interest income and net interest margin excluding acquisition accounting are supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s results of operations. The calculation of these measures is illustrated below.  Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the results of Hanmi. This disclosure should not be viewed as a substitution for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

Impact of the Acquisition Accounting Adjustment                    
  Fore the Three Months Ended            
 March 31, December 31, September 30, June 30, March 31,           
  2017 2016  2016 2016  2016           
Core loan yield 4.68% 4.63%  4.63% 4.78%  4.67%           
Accretion of discount on purchased loans 0.06% 0.09%  0.08% 0.13%  0.25%           
As reported 4.74% 4.72%  4.71% 4.91%  4.92%           
                     
Core deposit cost 0.55% 0.54%  0.54% 0.52%  0.54%           
Accretion of time deposits premium 0.01% 0.04%  0.07% 0.09%  0.11%           
As reported 0.54% 0.50%  0.47% 0.43%  0.43%           
                     
 Fore the Three Months Ended 
 March 31, 2017 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 
  Amount   Rate   Amount   Rate   Amount   Rate   Amount   Rate   Amount   Rate  
      (in thousands)              
Net interest income and net interest margin excluding acquisition accounting (1)$   42,230   3.85% $   41,489   3.86% $   38,874   3.75% $   38,671   3.84% $   36,164   3.68% 
Accretion of discount on Non-PCI loans   527  0.04%    781  0.07%    648  0.06%    994  0.10%    1,754  0.18% 
Accretion of discount on PCI loans   54  0.00%    78  0.01%    26  0.00%    97  0.01%    277  0.03% 
Accretion of time deposits premium   126  0.01%    314  0.03%    610  0.06%    791  0.08%    942  0.10% 
Amortization of subordinated debentures discount   (77) -0.01%    (90) -0.01%    (67) -0.01%    (62) -0.01%    (56) -0.01% 
Net impact   630  0.04%    1,083  0.10%    1,217  0.11%    1,820  0.18%    2,917  0.30% 
As reported, on a fully taxable equivalent basis (1)$   42,860   3.89% $   42,572   3.96% $   40,091   3.86% $   40,491   4.02% $   39,081   3.98% 
                     
(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate. 
  

Tangible Common Equity to Tangible Assets Ratio

Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi. This disclosure should not be viewed as a substitution for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

Tangible Common Equity to Tangible Assets Ratio (Unaudited) 
(In thousands, except share, per share data and ratios) 
  
 March 31, December 31, September 30, June 30, March 31, 
Hanmi Financial Corporation 2017  2016  2016  2016  2016 
Assets$  4,811,821  $  4,701,346  $  4,402,180  $  4,441,333  $  4,310,748  
Less goodwill   (11,031)    (11,031)    -     -     -  
Less other intangible assets   (1,766)    (1,858)    (1,456)    (1,537)    (1,619) 
Tangible assets$  4,799,024  $  4,688,457  $  4,400,724  $  4,439,796  $  4,309,129  
           
Common Stockholders' equity$  539,542  $  531,025  $  531,198  $  525,185  $  510,860  
Less goodwill   (11,031)    (11,031)    -     -     -  
Less other intangible assets   (1,766)    (1,858)    (1,456)    (1,537)    (1,619) 
Tangible Common stockholders' equity$  526,745  $  518,136  $  529,742  $  523,648  $  509,241  
           
Common Stockholders' equity to assets 11.21%  11.30%  12.07%  11.82%  11.85% 
Tangible common equity to tangible assets 10.98%  11.05%  12.04%  11.79%  11.82% 
           
Common shares outstanding   32,392,580     32,330,747     32,252,774     32,260,320     32,249,512  
Tangible common equity per common share$  16.26  $  16.03  $  16.42  $  16.23  $  15.79  


Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Richard Pimentel
Senior Vice President & Corporate Finance Officer
213-427-3191

Lasse Glassen
Investor Relations
Addo Investor Relations
310-829-5400