EXHIBIT 99.1

Hanmi Reports Second Quarter 2022 Results

LOS ANGELES, July 26, 2022 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the second quarter of 2022.

Net income for the second quarter of 2022 was $25.1 million, or $0.82 per diluted share, up 21.0% from $20.7 million, or $0.68 per diluted share for the first quarter of 2022. The sequential quarter increase in net income reflects growth in net interest income and noninterest income, carefully managed noninterest expenses and a modest credit loss expense. Return on average assets and return on average equity for the second quarter of 2022 were 1.45% and 14.92%, respectively.

CEO Commentary

“We delivered another quarter of solid results,” said Bonnie Lee, President and Chief Executive Officer of Hanmi Financial Corporation. “Our strong earnings were supported by record loan production, an increased net interest margin, and excellent asset quality, while we continued to exercise disciplined expense management. This outstanding performance for the quarter has made the first half of 2022 one of Hanmi’s strongest starts to a year.”

“During the quarter, we built strong momentum across our diverse business lines, which fueled our stellar loan production, driving 6.0% sequential growth in our loans. We generated record loan production in our residential mortgage platform, equipment finance and SBA group, validating the investments we have made in these key business lines. In addition, our deposit-gathering initiatives, designed to build and expand business banking relationships, continue to bear fruit. Deposits increased by 3.4% in the quarter, primarily driven by noninterest-bearing demand deposits, which grew by 3.9% in the quarter and 8.1% year-to-date. These core deposits now comprise 46.5% of total deposits and continue to help hold down our cost of deposits.”

“Our team remains focused on execution in both the pursuit of new customers and expanding our existing relationships. The strategic investments we made over the past several quarters in new talent and technology continue to fuel our strategic initiatives to grow and diversify our business. With a well-defined strategic plan in place and our ongoing focus on execution, we are well positioned to continue to deliver disciplined growth and attractive returns for our shareholders.”

Second Quarter 2022 Highlights:        

• Second quarter net income increased 21.0% to $25.1 million, or $0.82 per diluted share from $20.7 million, or $0.68 per share for the first quarter of 2022.
• Loans receivable grew to $5.66 billion at June 30, 2022, up 6.0% sequentially from the end of the first quarter and 9.8% from year-end on record loan production of $642.2 million for the second quarter.
• Deposits were $5.98 billion at June 30, 2022, up 3.4% sequentially from the end of the first quarter and 3.3% from year-end; noninterest-bearing demand deposits increased 3.9% sequentially and were 46.5% of the deposit portfolio.
• Net interest income was $59.0 million for the second quarter, up 15.9% from the first quarter.
• Net interest margin (taxable-equivalent) increased to 3.55% for the second quarter, up 45 basis points from the first quarter; the yield on loans increased 13 basis points sequentially while the cost of interest-bearing deposits rose five basis points.
• Credit loss expense was $1.6 million for the second quarter and the allowance for credit losses was $73.1 million at June 30, 2022, up from $71.5 million at March 31, 2022; the ratio of the allowance to loans however declined to 1.29% on higher loan balances.
• Nonaccrual loans improved 3.7% to $11.0 million and nonperforming assets were 0.17% of total assets at June 30, 2022.
• Noninterest income increased 9.3% to $9.3 million for second quarter from the first quarter on higher SBA gain on sale income as well as on higher overall service charges, fees and other income.
• Noninterest expense was $31.5 million for the second quarter, down 0.7% from the first quarter; the efficiency ratio for the second quarter improved to 46.05% from 53.29% for the first quarter.
• Hanmi’s tangible common equity to tangible assets was 8.74% at the end of the second quarter and it had a Common equity Tier 1 capital ratio of 11.07% and a Total capital ratio of 14.32%.

For more information about Hanmi, please see the Q2 2022 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

Results of Operations
Net interest income was $59.0 million for the second quarter of 2022 compared with $51.0 million for the first quarter of 2022. Second quarter interest and fees on loans receivable increased 11.0%, or $5.9 million, from the preceding quarter primarily due to a 6.5% increase in the average balance of loans receivable and a 13 basis point increase in average loan yields. Interest on securities in the second quarter increased $0.4 million from the first quarter primarily due to a $14.8 million increase in the average balance and a 16 basis point increase in the average yield. Second quarter loan prepayment penalties were $0.5 million compared with $0.4 million for the first quarter. Total interest expense for the second quarter decreased $1.8 million from the preceding quarter primarily due to the first quarter redemption of the 5.45% 2027 Subordinated Notes due March 30, 2027 (the “2027 Subordinated Notes”) and the related charge for unamortized debt issuance costs, partially offset by a five basis point increase in the average rate paid on interest-bearing deposits.

Net interest margin (taxable-equivalent) was 3.55% for the second quarter, up 45 basis points from the first quarter. The improvement was due to a combination of factors including lower subordinated debt costs, an increase in loan yields due to a shift in the composition of average loans together with a generally higher level of interest rates, and a significant decline in lower-yielding interest-bearing deposits held at other banks.

The yield on loans for the second quarter of 2022 increased 13 basis points to 4.31% from 4.18% for the first quarter of 2022 as average loans for the quarter increased 6.5% and average commercial and industrial loans grew to 12.7% of the average loan portfolio from 11.1%. Average interest-earning assets for the second quarter remained relatively unchanged sequentially at $6.67 billion: however, average interest-bearing deposits in other banks fell 72.4% quarter-over-quarter to $136.5 million from $494.9 million.

The cost of interest-bearing deposits increased five basis points to 0.31% for the second quarter compared with 0.26% for the previous quarter. Interest expense on subordinated debentures fell to $1.3 million for the second quarter from $3.6 million for the first quarter primarily due to the redemption of the 2027 Subordinated Notes and the related $1.1 million charge for unamortized debt issuance costs.

For the second quarter of 2022, Hanmi recorded a $1.6 million credit loss expense comprised of a $1.6 million provision for loan losses and a $45,000 negative provision for off-balance sheet items. For the first quarter of 2022, the Company recorded a $1.4 million recovery of credit loss expense comprised of a $1.1 million negative provision for loan losses and a $0.3 million negative provision for off-balance sheet items.

Second quarter 2022 noninterest income increased to $9.3 million from $8.5 million for the first quarter of 2022 primarily due to a $0.3 million increase in gains on the sale of SBA 7(a) loans, a $0.3 million increase in trade finance and other service charges and fees, and a $0.3 million increase in other operating income. The volume of SBA loans sold in the second quarter increased 41.5% to $41.9 million from $29.6 million in the first quarter while trade premiums declined to 7.97% for the second quarter from 9.85% for the first quarter.

Noninterest expense decreased slightly to $31.5 million for the second quarter of 2022 from $31.7 million for the first quarter. Salaries and employee benefits expense increased by $1.1 million reflecting annual merit increases and higher estimated incentive compensation for 2022 loan production. Offsetting this effect was a $0.2 million decline in professional fees, a $0.2 million decline in advertising and promotion expense, and a $0.7 million decrease in other operating expenses. The efficiency ratio improved to 46.05% for the second quarter from 53.29% for the prior quarter.

Hanmi recorded a provision for income taxes of $10.2 million for the second quarter of 2022, representing an effective tax rate of 29.0%, compared with $8.5 million, also representing an effective tax rate of 29.0% for the first quarter.

Financial Position
Total assets at June 30, 2022 increased 3.2%, or $218.9 million, to $6.96 billion from $6.74 billion at March 31, 2022. The increase reflects the 3.4%, or $196.6 million, growth in deposits as well as the $20.0 million increase in borrowings.

Loans receivable, before the allowance for credit losses, were $5.66 billion at June 30, 2022, up 6.0% from $5.34 billion at March 31, 2022. Loans held for sale, representing the guaranteed portion of SBA 7(a) loans, were $18.5 million at the end of the second quarter of 2022 compared with $15.6 million at the end of the first quarter.

New loan production was a record $642.2 million for the second quarter at an average rate of 4.35% while $230.5 million of loans paid-off during the quarter at an average rate of 4.43%.

Commercial real estate loan production for the second quarter was $271.0 million. Commercial and industrial loan production was $96.2 million, SBA loan production was $67.9 million, equipment finance lease production was $95.4 million and residential mortgage loan production was $111.8 million. The strong loan growth for the second quarter was supported by the increase in core deposits, a reduction in excess liquidity (cash and due from banks), and to a lesser extent an increase in borrowings.

Deposits were $5.98 billion at the end of the second quarter of 2022, up $196.2 million, or 3.4%, from $5.78 billion at the end of the preceding quarter. The change was primarily driven by a $104.0 million increase in noninterest-bearing demand deposits, a $21.2 million increase in money market and savings deposits and a $74.3 million increase in time deposits. Noninterest-bearing demand deposits represented 46.5% of total deposits at June 30, 2022 and the loan-to-deposit ratio was 94.6%.

Stockholders’ equity at June 30, 2022 was $618.3 million, compared with $621.5 million at March 31, 2022. The sequential decline was primarily due to the $21.7 million unrealized after-tax loss because of changes in the value of the securities portfolio resulting from increases in interest rates during the quarter which outpaced the $18.3 million contribution of second quarter net income less dividends. Tangible common stockholders’ equity was $607.0 million, or 8.74% of tangible assets, at June 30, 2022, compared with $610.1 million, or 9.07% of tangible assets at the end of the first quarter. Tangible book value per share decreased to $19.91 at June 30, 2022 from $20.02 at the end of the prior quarter.

Hanmi and the Bank exceeded the minimum regulatory capital requirements and the Bank continues to exceed the minimum for the “well capitalized” category. At June 30, 2022, Hanmi’s preliminary Common equity Tier 1 capital ratio was 11.07% and its Total risk-based capital ratio was 14.32% compared with 11.34% and 14.73%, respectively, at the end of the first quarter of 2022.

Asset Quality
Loans and leases 30 to 89 days past due and still accruing were 0.07% of loans and leases at the end of the second quarter of 2022, compared with 0.10% at the end of the prior quarter.

Special mention loans were $80.5 million at the end of the second quarter, down from $141.0 million at March 31, 2022. The quarter-over-quarter change included increases from downgrades of pass loans of $1.9 million and upgrades from classified loans of $0.7 million. Reductions included upgrades to pass of $57.7 million, payoffs and paydowns of $5.3 million and $0.1 million of downgrades to classified.   

Classified loans were $53.0 million at June 30, 2022, down from $57.4 million at the end of the first quarter.

Nonperforming loans were $11.0 million at June 30, 2022, or 0.20% of loans, down from $11.5 million at the end of the first quarter, or 0.21% of the portfolio.

Nonperforming assets were $11.7 million at the end of the second quarter of 2022, or 0.17% of total assets, down from $12.1 million, or 0.18% of assets, at the end of the prior quarter.

Gross charge-offs for the second quarter of 2022 were $0.6 million, compared with $0.8 million for the preceding quarter. Recoveries of previously charged-off loans for the second quarter of 2022 were $0.5 million, compared with $0.9 million for the preceding quarter. As a result, there were net charge-offs of $0.1 million for the second quarter of 2022, compared with net recoveries of $0.1 million for the prior quarter. For the second quarter of 2022, net charge-offs represented 0.01% of average loans on an annualized basis, compared with net recoveries of 0.01% of average loans for the first quarter on an annualized basis.

The allowance for credit losses was $73.1 million at June 30, 2022, up $1.6 million from $71.5 million at March 31, 2022. The ratio of the allowance for credit losses to loans however declined to 1.29% at the end of the second quarter on essentially higher loan balances. Specific allowances for loans declined $0.2 million while quantitative and qualitative allowances increased $1.8 million principally on higher loan balances. Qualitative loss factors remained essentially unchanged; however, they now begin to reflect the uncertainties of future economic conditions in a rising interest rate environment.

Corporate Developments
On April 28, 2022, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2022 second quarter of $0.22 per share. The dividend was paid on May 25, 2022, to stockholders of record as of the close of business on May 9, 2022.

Earnings Conference Call        
Hanmi Bank will host its second quarter 2022 earnings conference call today, July 26, 2022 at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the event the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code HANMI. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations 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 eight 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 our 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 and strategic plans, 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;
• the effect of our rating under the Community Reinvestment Act and our ability to address any issues raised in our regulatory exams;
• 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;
• inflation and fluctuations in interest rates and a decline in the level of our interest rate spread;
• the current or anticipated impact of military conflict, terrorism or other geopolitical events;
• risks of natural disasters;
• legal proceedings and litigation brought against us;
• a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
• the failure to maintain current technologies;
• the inability to successfully implement future information technology enhancements;
• difficult business and economic conditions that can adversely affect our industry and business, including competition, 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;
• changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums;
• the continuing impact of the COVID-19 pandemic on our business and results of operation;
• 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;
• strategic transactions we may enter into;
• the adequacy of our allowance for credit losses;
• our credit quality and the effect of credit quality on our credit losses expense 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.

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, 2021, 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

Larry Clark, CFA
Investor Relations
Financial Profiles, Inc.
lclark@finprofiles.com
310-622-8223