EXHIBIT 99.1

Hanmi Reports 2023 First Quarter Results

LOS ANGELES, April 25, 2023 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the first quarter of 2023.

Net income for the first quarter of 2023 was $22.0 million, or $0.72 per diluted share, compared with $28.5 million, or $0.93 per diluted share, for the fourth quarter of 2022. The decline primarily reflects lower net interest income and higher credit loss expense. Return on average assets and return on average equity for the first quarter of 2023 were 1.21% and 12.19%, respectively.

CEO Commentary

“Our team delivered excellent first quarter results with a 2% annualized growth in deposits since year-end, a 6% growth in net income since the year ago quarter and, all the while, maintaining high levels of liquidity and exercising disciplined expense management,” said Bonnie Lee, President and Chief Executive Officer of Hanmi. “The new relationships we developed during the quarter led to the growth in deposits, reflecting the strength of our relationship banking strategy.”

“As anticipated, loan production moderated from last year due in part to the high interest rate environment and uncertain macroeconomic conditions. Additionally, we are taking a more selective and prudent approach with our lending as maintaining strong asset quality remains paramount. The industry events in March presented another opportunity for us to partner with our customers as we proactively stepped up communications to offer support in this turbulent environment.”

“Our balance sheet is strong, with ample liquidity, solid credit quality and excellent capital ratios. I am grateful to our team of highly skilled bankers who work tirelessly to build trusted banking relationships with our customers and who continue to deliver strong results to our shareholders.”

First Quarter 2023 Highlights:

• First quarter net income was $22.0 million, or $0.72 per diluted share, down 22.8% from $28.5 million, or $0.93 per diluted share for the fourth quarter of 2022 and reflects lower net interest income, a larger credit loss expense, and a higher effective tax rate, offset by lower noninterest expenses and higher noninterest income.
• Loans receivable were $5.98 billion at March 31, 2023, up 0.9% (annualized) from year-end 2022; first quarter loan production was $303.6 million with a weighted average interest rate of 7.19%.
• Deposits increased 2.1% (annualized) from year-end 2022 to $6.20 billion at March 31, 2023; noninterest-bearing demand deposits were 37.6% of the deposit portfolio at March 31, 2023.
• Net interest income for the first quarter was $57.9 million, down 10.4% from the fourth quarter, primarily due to higher deposit interest expense.
• Net interest margin (taxable equivalent) was 3.28% for the first quarter, down 39 basis points from the prior quarter; sequentially, the average yield on loans increased 30 basis points while the cost of interest-bearing deposits increased 103 basis points.
• Noninterest income for the first quarter was $8.3 million, up 11.8% from the fourth quarter, and noninterest expense was $32.8 million, down 3.1% from the fourth quarter of 2022; the efficiency ratio for the first quarter was 49.54%.
• Credit loss expense for the first quarter was $2.1 million; the ratio of the allowance for credit losses to loans increased to 1.21% at the end of the first quarter from 1.20% at year-end 2022.
  
• Criticized loans declined 10.9% from the fourth quarter of 2022, and stood at 1.9% of loans at quarter-end; nonperforming assets were $20.2 million, or 0.27% of total assets at the end of the first quarter, compared with 0.14% at year-end 2022.
• Hanmi’s ratio of tangible common equity to tangible assets was 8.77% at March 31, 2023 and it had a preliminary Common equity Tier 1 capital ratio of 11.59% and a Total capital ratio of 14.80%.

For more information about Hanmi, please see the Q1 2023 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 for the first quarter decreased $6.7 million to $57.9 million from $64.6 million for the fourth quarter of 2022, down 10.4%. The decrease was primarily due to an increase in the cost of interest-bearing deposits, partially offset by an increase in interest-earning asset yields. Average loans were $5.94 billion for the first quarter, compared with $5.88 billion for the fourth quarter of 2022. The yield on average loans for the first quarter increased 30 basis points to 5.51% from 5.21% for the fourth quarter. The cost of interest-bearing deposits increased 103 basis points to 2.73% from 1.70% for the fourth quarter of 2022. Average interest-bearing deposits were $3.79 billion for the first quarter, compared to $3.49 billion for the fourth quarter. First quarter loan prepayment fees were $0.4 million compared with $0.1 million for the fourth quarter. Net interest margin (taxable-equivalent) for the first quarter was 3.28% compared with 3.67% for the fourth quarter of 2022.

Credit loss expense for the first quarter was $2.1 million and included a $2.2 million provision for loan losses and a $0.1 million recovery for off-balance sheet items. For the fourth quarter of 2022, credit loss expense was $0.1 million and included a $0.2 million provision for loan losses and a $0.1 million provision for off-balance sheet items. The fourth quarter also included a recovery of an SBA guarantee repair loss allowance of less than $0.1 million.

Noninterest income for the first quarter increased $0.8 million to $8.3 million from $7.5 million for the fourth quarter of 2022. The increase reflected the absence of the fourth quarter $0.3 million valuation adjustment to bank-owned life insurance and a $0.9 million increase in all other operating income. All other operating income increased, primarily from $0.6 million of loan customer interest rate swap fee income. The volume of SBA loans sold in the first quarter declined to $29.7 million from $40.9 million for the fourth quarter of 2022 due to the higher interest rate environment while trade premiums increased to 7.85% for the first quarter from 5.99% for the fourth quarter.

Noninterest expense for the first quarter declined $1.0 million to $32.8 million from $33.8 million for the fourth quarter of 2022. The decrease reflected $0.4 million in lower professional fees and a $1.1 million decrease in other operating expenses, driven by a recovery of the fourth quarter 2022 servicing valuation adjustment. Additionally, expenses on real estate owned and repossessed personal property decreased $0.3 million during the first quarter. These decreases were partially offset by a $0.3 million increase in salaries and benefits and a $0.7 million increase in occupancy and equipment expenses, mostly due to normalization of property tax expenses in the absence of prior quarter adjustments. The efficiency ratio for the first quarter increased to 49.54%, from 46.99% for the prior quarter due to the lower revenue.

Hanmi recorded a provision for income taxes of $9.3 million for the first quarter, compared with $9.6 million in the fourth quarter of 2022 and representing an effective tax rate of 29.7%, compared with 25.3% for the fourth quarter. The increase in the first quarter effective tax rate primarily reflects the absence of a state tax valuation reserve released during the fourth quarter of 2022.

Financial Position
Total assets at March 31, 2023 increased 0.8%, or $55.9 million, to $7.43 billion from $7.38 billion at December 31, 2022. The increase reflected a $12.6 million increase in loans receivable, a $33.8 million increase in cash and due from banks, and a $24.9 million increase in securities available for sale.

Loans receivable, before the allowance for credit losses, were $5.98 billion at quarter-end, up slightly from December 31, 2022. Loans held for sale, representing the guaranteed portion of SBA 7(a) loans, were $3.7 million at the end of the first quarter, compared with $8.0 million at the end of the prior quarter.

New loan production was $303.6 million for the first quarter, at an average rate of 7.19% while $124.9 million of loans paid off during the quarter at an average rate of 7.27%.

Commercial real estate loan production for the first quarter was $75.5 million. Commercial and industrial loan production was $27.1 million, SBA loan production was $34.5 million, equipment finance production was $69.3 million and residential mortgage loan production was $97.2 million.

Deposits were $6.20 billion at the end of the first quarter, up $33.0 million, or 0.5%, from $6.17 billion at the end of the prior quarter. The change was primarily driven by a $424.0 million increase in time deposits, partially offset by a $174.2 million decline in money market and savings deposits and a $205.5 million decrease in noninterest-bearing demand deposits. Noninterest-bearing demand deposits represented 37.6% of total deposits at quarter-end and the loan-to-deposit ratio was 96.4%.

Stockholders’ equity at March 31, 2023 was $662.2 million, compared with $637.5 million at December 31, 2022. The increase was primarily due to $14.4 million of first quarter net income net of dividends as well as a $9.9 million reduction in unrealized after-tax loss due to changes in the value of the securities portfolio resulting from decreases in intermediate-term interest rates during the first quarter. Tangible common stockholders’ equity was $651.0 million, or 8.77% of tangible assets, at March 31, 2023, compared with $626.3 million, or 8.50% of tangible assets at the end of the fourth quarter of 2022. Tangible book value per share increased to $21.30 at March 31, 2023, up from $20.54 at year-end 2022. Refer to “Non-GAAP Financial measures” for greater detail.

Hanmi and the Bank exceeded the minimum regulatory capital requirements and the Bank continues to exceed the minimum for the “well capitalized” category. At March 31, 2023, Hanmi’s preliminary Common equity Tier 1 capital ratio was 11.59% and its Total risk-based capital ratio was 14.80%, compared with 11.37% and 14.49%, respectively, at the end of the fourth quarter of 2022.

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.26% of loans at the end of the first quarter, compared with 0.13% at the end of the prior quarter. A $6.7 million past due and accruing loan at March 31, 2023, subsequent to the end of the first quarter, resolved its delinquency.

Special mention loans were $64.3 million at the end of the first quarter, down from $79.0 million at December 31, 2022. The $14.7 million decrease in special mention loans included downgrades to classified loans of $10.0 million, and payoffs of $4.6 million.

Classified loans were $47.3 million at March 31, 2023, up from $46.2 million at the end of the prior quarter. The $1.1 million increase was primarily driven by the downgrade of one loan in the amount of $10.0 million, offset by loan upgrades of $8.8 million.

Nonperforming loans were $20.1 million at March 31, 2023, up from $9.8 million at the end of the prior quarter, primarily due to a $10.0 million loan placed on nonaccrual during the first quarter of 2023. As a percentage of the loan portfolio, nonperforming loans were 0.34% at quarter-end, compared with 0.17% at the end of the fourth quarter of 2022. Nonperforming loans included a $10.0 million commercial and industrial loan in the health-care industry secured by real estate and business assets for which there was a specific allowance of $2.5 million.

Nonperforming assets were $20.2 million at the end of the first quarter, up from $10.0 million at the end of the fourth quarter of 2022. As a percentage of total assets, nonperforming assets were 0.27% at quarter-end, compared with 0.14% at year-end 2022.

Gross charge-offs for the first quarter were $2.2 million, compared with $1.2 million for the fourth quarter of 2022. First quarter 2023 gross charge-offs consisted of $1.6 million of equipment financing agreements and $0.6 million of commercial and industrial and SBA loans. Recoveries of previously charged-off loans for the first quarter were $0.8 million, compared with $0.9 million for the prior quarter. Recoveries during the first quarter consisted of $0.5 million of equipment financing agreements and $0.3 million in commercial and industrial and SBA loans.

As a result, there were net charge-offs of $1.5 million for the first quarter, compared with net charge-offs of $0.3 million for the prior quarter. For the first quarter, net charge-offs represented 0.10% of average loans on an annualized basis, compared with net charge-offs of 0.02% of average loans for the fourth quarter of 2022 on an annualized basis.

The allowance for credit losses was $72.2 million at March 31, 2023, up from $71.5 million at December 31, 2022. The ratio of the allowance for credit losses to loans was relatively unchanged at 1.21% at the end of the first quarter, from 1.20% at the end of the fourth quarter. Specific allowances for loans increased $2.9 million, while the allowance for quantitative and qualitative considerations decreased $2.2 million.

Corporate Developments
On January 26, 2023, Hanmi’s Board of Directors declared a cash dividend on its common stock for the first quarter of 2023 of $0.25 per share. The dividend was paid on February 23, 2023, to stockholders of record as of the close of business on February 6, 2023.

Earnings Conference Call
Hanmi Bank will host its first quarter 2023 earnings conference call today, April 25, 2023 at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code Hanmi Bank. 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, including any potential recessionary conditions;
• 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;
• risks associated with Small Business Administration loans;
• failure to attract or retain key employees;
• our ability to access cost-effective funding;
• changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio;
• 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 and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
• 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; and
• cyber security and fraud risks 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, 2022, 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