EXHIBIT 99.1

Hanmi Reports First Quarter 2020 Results

2020 First Quarter Highlights:                    

• Net income of $2.4 million, or $0.08 per diluted share, down from $3.1 million, or $0.10 per diluted share for the prior quarter and down from $14.7 million or $0.48 per diluted share from the same quarter a year ago; 2020 first quarter results included credit loss expense of $15.7 million.
• Loans receivable of $4.54 billion, down 1.4% from the prior quarter and down 0.7% year-over-year reflecting the strategy of allowing residential mortgages to run-off and shifting the mix of the portfolio to higher-yielding loans; first quarter loan production up 16.0% from the same quarter last year.
• Deposits of $4.58 billion, down 2.5% from the prior quarter and down 4.9% year-over-year reflecting the decline in higher-costing time deposits; first quarter cost of interest-bearing deposits declined 19 basis points from the prior quarter.
• Credit loss expense, under the new accounting standard, was $15.7 million, compared with $10.8 million for the prior quarter; the allowance for credit losses stood at 1.46% of loans at March 31, 2020.
• Nonperforming assets were $52.3 million, or 0.93% of total assets at quarter-end, reflecting the charge-off of the previously identified troubled loan relationship.
• Net interest income was $44.0 million for the first quarter compared with $43.9 million for the previous quarter; net interest margin increased to 3.36% compared with 3.32% for the prior quarter.
• Noninterest income was $6.2 million, down from $6.7 million for the previous quarter; gains on sales of SBA loans were $1.2 million and $1.5 million, respectively for the same time periods.
• Noninterest expense was $31.1 million, down 8.9% from the previous quarter that included a $1.7 million impairment charge on bank premises to be sold; the efficiency ratio for the quarter was 61.89%.
• Hanmi’s response to the COVID-19 crisis includes $156.8 million of loans funded to-date through the Paycheck Protection Program, which commenced on April 3, 2020.

LOS ANGELES, April 30, 2020 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported net income for the 2020 first quarter of $2.4 million, or $0.08 per diluted share, compared with $3.1 million, or $0.10 per diluted share for the 2019 fourth quarter and $14.7 million, or $0.48 per diluted share for the 2019 first quarter.

On January 1, 2020, Hanmi adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses, which replaced the incurred loss methodology for estimating credit losses with a forward-looking current expected credit losses (“CECL”) methodology. The adoption resulted in a $17.4 million increase to the beginning balance of the allowance for credit losses, a $0.3 million decrease to the beginning balance of the allowance for off-balance sheet items and an after-tax charge of $12.2 million to the beginning balance of retained earnings.

Bonnie Lee, President and Chief Executive Officer, said, “As the COVID-19 crisis continues, we are focused on ensuring the health and safety of our employees, customers, partners, and communities we have served for nearly four decades. As an essential business under various state and federal guidelines, nearly all of Hanmi’s branches remain open with some modifications to business hours. In addition to complying with all social distancing guidelines, we have sourced and distributed personal protective equipment and other supplies to all branches and installed protective barriers for teller lines for the benefit of our frontline associates. Notwithstanding the sudden impact this had on our business activities, Hanmi continued to deliver throughout the first quarter.”

“With respect to our customers, we continue to look for ways to provide support in this time of need. Where appropriate, we are working with borrowers through modifications, deferrals and other services to help them weather the crisis. Currently, we have received more than 3,000 inquiries and disbursed approximately $156.8 million for the SBA’s Paycheck Protection Program and we are working tirelessly to process these loans as quickly as possible. Hanmi is reviewing other government funded relief programs and intends to stand by its customers.

Ms. Lee concluded, “Our results in the first quarter reflect the significant challenges imposed by this crisis. While these are difficult times, Hanmi is no stranger to successfully operating in a challenging environment, and I am proud of the Bank’s track-record of persevering through periods of adversity. From the LA Riots in 1992 to the Financial Crisis of 2008, we have demonstrated the ability to unite in support of our customers and local communities. As Hanmi has done many times before, I am confident that we will come through this crisis stronger than ever.”

Quarterly Highlights
(Dollars in thousands, except per share data)

Results of Operations
Net interest income was $44.0 million for the first quarter of 2020 compared with $43.9 million for the fourth quarter of 2019. First quarter interest and fees on loans receivable decreased 2.9%, or $1.6 million, from the preceding quarter primarily due to an 11 basis point reduction in average yields, which declined in part from the 150 basis point decline in the federal funds rate late in the first quarter. This was offset by a decrease in total interest expense of 10.8%, or $1.8 million, from the preceding quarter due primarily to lower rates paid on interest-bearing deposits. First quarter loan prepayment penalties were $0.5 million compared with $0.7 million for the fourth quarter.

Net interest margin was 3.36% for the first quarter of 2020 compared with 3.32% for the fourth quarter of 2019, principally reflecting a 19 basis point decline in the cost of interest-bearing deposits offset by a 9 basis point decline in the yield on earning assets. The average earning asset yield was 4.50% for the first quarter of 2020 compared with 4.59% for the fourth quarter of 2019. The 9 basis point decline reflects in part the 150 basis point decline in the federal funds rate. The cost of interest-bearing liabilities was 1.70% for the first quarter of 2020 compared with 1.89% for the fourth quarter of 2019. The lower cost of interest-bearing liabilities was driven by a reduction in the general level of interest rates.

For the first quarter of 2020, credit loss expense was $15.7 million, comprised of a $14.9 million provision for loan losses and a $0.8 million provision for off-balance sheet items. The provision for loan losses for the fourth quarter of 2019 was $10.8 million and was $1.1 million for the first quarter of 2019. The provision for off-balance sheet items was an expense of $0.9 million and income of $0.3 million for the fourth quarter and first quarter of 2019, respectively. The 2020 first quarter expense included a $7.4 million specific qualitative provision for the COVID-19 crisis, a $4.9 million provision primarily for changes in other qualitative factors, and a $2.6 million specific provision for the previously identified troubled loan relationship. The 2019 fourth quarter included a $6.9 million specific provision for the previously identified troubled loan relationship.

First quarter noninterest income decreased 7.2% to $6.2 million from $6.7 million for the fourth quarter, primarily due to a $0.3 million decrease in gain on sale of SBA loans. Gains on sales of SBA loans were $1.2 million for the first quarter 2020, down from $1.5 million for the preceding quarter reflecting lower trade volumes notwithstanding higher trade premiums. SBA trade premiums increased to 8.35% for the first quarter compared with 7.60% for the prior quarter and the volume of SBA loans sold for the 2020 first quarter and 2019 fourth quarter were $18.2 million and $25.0 million, respectively.

During the first quarter of 2020, noninterest expense decreased 8.9% to $31.1 million from $34.1 million in the fourth quarter due to a $1.7 million impairment loss on former bank premises to be sold and a $0.9 million provision for off-balance sheet items recorded in the fourth quarter, as well as a $0.7 million decrease in professional fees for the first quarter. Primarily as a result of lower noninterest expense, the efficiency ratio improved to 61.9% in the first quarter from 67.3% in the prior quarter.

Hanmi recorded a provision for income taxes of $1.0 million for the first quarter of 2020, representing an effective tax rate of 30.7% compared with $2.7 million, representing an effective tax rate of 46.9% for the fourth quarter of 2019. The full year 2019 effective tax rate was 30.8%.

Financial Position
Total assets were $5.62 billion at March 31, 2020, a 1.4% increase from $5.54 billion at December 31, 2019.

Loans receivable, before the allowance for credit losses, were $4.54 billion at March 31, 2020, down 1.4% from $4.61 billion at December 31, 2019. Loans held for sale, representing the guaranteed portion of SBA loans were $6.0 million at the end of the fourth quarter; there were no loans held for sale at the end of the first quarter. Hanmi does not expect, at this time, that it will sell SBA 7(a) loans during the second quarter because of the disruptions in the secondary market resulting from the COVID-19 crisis.

For the first quarter of 2020, commercial real estate loans as a percentage of loans receivable decreased to 70.1% compared with 70.6% for the same period last year. Commercial and industrial loans, and leases each reached 10.4% and 10.8% of the portfolio; a year ago, they were 9.2% and 9.3%, respectively.

New loan production for the 2020 first quarter was $208.7 million at an average rate of 4.88%, while the average rate of loans paid off during the same period was 4.70%. Although Hanmi generated strong loan production volume through much of the first quarter, approximately $100 million of loans, inclusive of $13 million of SBA 7(a) loans, that were in late stages of approval were withdrawn or delayed by borrowers in the final weeks of the quarter due to economic uncertainty surrounding the COVID-19 crisis.

Deposits totaled $4.58 billion at the end of the first quarter, compared with $4.70 billion at the end of the preceding quarter and $4.82 billion at the end of the first quarter last year. The average loan-to-deposit ratio for the first quarter was 97.7% compared with 96.1% for both the prior quarter and first quarter 2019.

At March 31, 2020, the Bank had $300 million in borrowings from the FHLB with $1.22 billion of remaining unused availability. As of the end of the first quarter, the Bank had unused secured and unsecured facilities of $165.6 million. In addition, the Bank will participate in the Paycheck Protection Program Lending Facility, established by the Federal Reserve in the second quarter of 2020.  

At March 31, 2020 the Company had $20.0 million of cash on deposit with the Bank. Hanmi believes it has ample liquidity resources to address the uncertainties of the COVID-19 crisis as they have unfolded to date and remains vigilant in assessing customer behavior and potential liquidity needs in this uncertain period.

At March 31, 2020, stockholders’ equity was $553.0 million, compared with $563.3 million at December 31, 2019. Tangible common stockholders’ equity was $541.2 million, or 9.65% of tangible assets, compared with $551.4 million, or 9.98% of tangible assets at the end of the fourth quarter. Tangible book value per share decreased to $17.67 from $17.90 in the prior quarter. During the first quarter, Hanmi repurchased 135,400 shares at an average price of $16.22 for an aggregate investment of approximately $2.2 million. As of March 31, 2020, approximately 1.0 million shares remained available for future purchases under the current stock repurchase program. Shortly following the federal proclamation declaring a national emergency concerning the COVID-19 outbreak, Hanmi suspended its share repurchase program and does not anticipate it will consider resumption of share repurchases until the national emergency has been rescinded.

Hanmi continues to be well capitalized for regulatory purposes, with a preliminary Tier 1 risk-based capital ratio of 11.35% and a Total risk-based capital ratio of 14.50% at March 31, 2020, versus 11.78% and 15.11%, respectively, for the fourth quarter.

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.22% of loans at the end of the first quarter of 2020, unchanged from the end of the fourth quarter. At March 31, 2020, loans past due 90 days and still accruing included a $5.5 million loan with film-tax credit collateral and is in the process of collection.

Classified loans were $88.2 million at March 31, 2020 compared with $94.0 million at the end of the fourth quarter, while special mention loans were $20.9 million at the end of the first quarter compared with $26.6 million at December 31, 2019. The decrease in classified loans primarily represents the charge-off of the previously identified troubled loan relationship, offset by the addition of two film-tax credit loans totaling $12.6 million.

Nonperforming loans were $52.2 million at the end of the first quarter of 2020, or 1.15% of loans compared with $63.8 million at the end of the fourth quarter, or 1.38% of the portfolio. Nonperforming assets were $52.3 million at the end of the first quarter of 2020, or 0.93% of total assets, compared with $63.8 million, or 1.15% of assets, at the end of the prior quarter. The decrease in nonperforming loans and nonperforming assets from the prior quarter primarily reflects the charge-off described above.

The Bank received numerous requests for modification of scheduled payments on loans and leases representing approximately $1.4 billion of the portfolio to date. The Bank is processing these requests in accordance with the guidance issued by the FDIC. In addition, the Bank is participating in the Paycheck Protection Program and, during the second quarter, received more than 3,000 applications representing more than $400 million in potential loans under this program.

Gross charge-offs for the first quarter of 2020 were $27.5 million, $25.2 million of which related to the troubled loan relationship. Gross charge-offs for the fourth quarter of 2019 were $1.0 million. Recoveries of previously charged-off loans for the first quarter of 2020 were $0.2 million compared with $1.0 million for the preceding quarter. As a result, there were net charge-offs of $27.3 million for the first quarter of 2020, compared with net charge-offs of $55,000 for the preceding quarter. For the first quarter of 2020, net charge-offs represented an annualized 2.41% of average loans – 0.19% excluding the charge-off of the troubled loan relationship – compared to nil net charge-offs for the preceding quarter.

The allowance for credit losses was $66.5 million as of March 31, 2020 generating an allowance for credit losses to loans of 1.46% compared with 1.33% at the end of the prior quarter. The allowance included a $7.4 million specific qualitative amount for the uncertainties arising from the COVID-19 crisis. Hanmi analyzed the segments of the portfolio believed to be the most vulnerable to the crisis at this time – hospitality, food service and retail – representing approximately $1.0 billion of the portfolio. For this segment, Hanmi used varying revenue shocks to identify post-stressed real estate secured loans with debt-service-coverage ratios of one or less and compared those to estimated post-stressed real estate valuations as well as peak historical loss rates for unsecured loans in developing this estimate. Hanmi recognizes the inherent uncertainties in this estimate and the effects this crisis may have on our borrowers. Hanmi expects the estimate of the allowance for credit losses will change in future periods because of changes in economic conditions, economic forecasts, and other factors.

Corporate Developments
On January 23, 2020 Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2020 first quarter of $0.24 per share. The dividend was paid on February 27, 2020, to stockholders of record as of the close of business on February 3, 2020.

Conference Call                            
Management will host a conference call today, April 30, 2020 at 2:00 p.m. PT (5:00 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 1-877-300-8521 before 2:00 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 35 full-service branches and 9 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. 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. 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 our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking 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 statements. These factors include the following:

• a 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;
• our ability to remediate any material weakness in our internal controls over financial reporting;
• 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;
• a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
• the failure to maintain current technologies;
• our inability to successfully implement future information technology enhancements;
• difficult business and economic conditions that can adversely affect our industry and business, including competition and lack of soundness of other financial institutions, fraudulent activity and negative publicity;
• risks associated with Small Business Administration loans;
• failure to attract or retain key employees;
• our ability to access cost-effective funding;
• fluctuations in real estate values;
• changes in accounting policies and practices;
• the imposition of tariffs or other domestic or international governmental policies impacting the value of the products of our borrowers;
• changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums;
• the 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;
• our ability to identify a suitable strategic partner or to consummate a strategic transaction;
• the adequacy of our allowance for credit losses;
• our credit quality and the effect of credit quality on our provision for loan losses and allowance for credit 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;
• changes in securities markets; and
• risks as it relates to cyber security against our information technology and those of our third-party providers and vendors.

             
Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be reopened. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations:

• demand for our products and services may decline, making it difficult to grow assets and income;
• if the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income;
• collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase;
• our allowance for credit losses may have to be increased if borrowers experience financial difficulties, which will adversely affect our net income;
• the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.
• as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income;
• a material decrease in net income or a net loss over several quarters could result in a decrease in the rate of our quarterly cash dividend,
• our cyber security risks are increased as the result of an increase in the number of employees working remotely; and
• FDIC premiums may increase if the agency experiences additional resolution costs;

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, 2019, 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.

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

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

Hanmi Financial Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(In thousands)

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(In thousands, except share and per share data)

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(In thousands, except ratios)

Non-GAAP Financial Measures

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 common 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)