EXHIBIT 99.1

Hanmi Reports 2023 Third Quarter Results

LOS ANGELES, Oct. 24, 2023 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the third quarter of 2023.

Net income for the third quarter of 2023 was $18.8 million, or $0.62 per diluted share, compared with $20.6 million, or $0.67 per diluted share, for the second quarter of 2023. Return on average assets and return on average equity for the third quarter of 2023 were 1.00% and 9.88% annualized, respectively.

Net income for the first nine months of 2023 was $61.4 million, or $2.01 per diluted share, compared with $72.9 million, or $2.39 per diluted share, for the first nine months of 2022. For the first nine months of 2023, return on average assets and return on average equity were 1.11% and 11.05% annualized, respectively.

CEO Commentary

“Our team successfully navigated another quarter of economic uncertainty and higher interest rates to deliver solid third quarter results that reflect the strength of our franchise and the success of our relationship banking model,” said Bonnie Lee, President and Chief Executive Officer of Hanmi Financial Corporation. “Our focus on our core customers where we obtain and have both a lending and deposit relationship continues to serve us well as evidenced by our strong level of demand deposit accounts, a stable deposit base and solid loan production.

“While we continue to take a disciplined and selective approach to lending, third quarter loan production increased, reflecting a contribution from nearly all of our business lines, as well as meaningful increases in new loan yields. Importantly, our asset quality remains excellent, which we attribute to the strength of our direct customer relationships and our proactive approach to credit administration.

“We are entering the fourth quarter with a healthy loan pipeline, stable core deposits, solid credit quality and well-managed expenses. We look forward to opening two new branches in the fourth quarter to capitalize on attractive growth opportunities. We will remain focused on executing on our strategic initiatives to drive disciplined growth and to create value for our shareholders over the long-term.”

Third Quarter 2023 Highlights:

• Third quarter net income was $18.8 million, or $0.62 per diluted share, down 8.8% from $20.6 million, or $0.67 per diluted share, for the second quarter of 2023 and reflects primarily higher credit loss expense offset by higher noninterest income.
• Loans receivable were $6.02 billion at September 30, 2023, up 0.9% sequentially from the end of the second quarter and the end of 2022; loan production for the third quarter was $336.3 million with a weighted average interest rate of 7.80%.
• Deposits were $6.26 billion at the end of the third quarter, down 0.9% sequentially from the end of the second quarter but up 1.5% from year-end; noninterest-bearing deposits were 34.5% of the deposit portfolio at September 30, 2023.
• Net interest income was $54.9 million for the third quarter, down 1.0% from the second quarter and net interest margin (taxable equivalent) was 3.03%, down eight basis points from the prior quarter; sequentially, the average yield on loans increased 9 basis points while the cost of interest-bearing deposits increased 28 basis points.
• Noninterest income for the third quarter was $11.2 million, up 41.5% from the second quarter, primarily reflecting a $4.0 million gain on the sale-and-leaseback of a branch property; noninterest expense for the third quarter was $34.2 million, down 0.1% sequentially and the efficiency ratio for the third quarter was 51.82%.
• Credit loss expense for the third quarter was $5.2 million compared with a recovery of less than $0.1 million for the prior quarter; net loan charge-offs were $8.9 million and included $6.1 million of charge-offs on $11.0 million of previously identified classified loans for which there were $4.3 million of specific allowances.
• The allowance for credit losses was $67.3 million at September 30, 2023, or 1.12% of loans at the end of the third quarter.
• Loans 30 to 89 days past due and still accruing declined to 0.16% of loans and nonperforming assets fell 28.7% to $15.9 million or 0.22% of total assets at September 30, 2023.
• Hanmi had a ratio of tangible common equity to tangible assets of 8.89% at September 30, 2023 and a preliminary Common equity Tier 1 capital ratio of 11.95% and a Total capital ratio of 15.07%.
  

For more information about Hanmi, please see the Q3 2023 News & Events section (and Supplemental Financial Information), which is available on the Bank’s Investor Relations section of the corporate website at www.hanmi.com. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

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

Results of Operations
Net interest income for the third quarter decreased $0.5 million to $54.9 million from $55.4 million for the second quarter of 2023, down 1.0%. 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 and one additional day in the quarter. The cost of interest-bearing deposits increased 28 basis points to 3.53% for the third quarter of 2023 from 3.25% for the second quarter of 2023. The increase was due to higher market interest rates and a shift in the composition of the portfolio to higher-rate deposits. Average interest-bearing deposits were $4.13 billion for the third quarter, compared with $3.97 billion for the second quarter. Average loans were $5.92 billion for the third quarter, compared with $5.94 billion for the second quarter of 2023. The yield on average loans for the third quarter increased nine basis points to 5.73% from 5.64% for the second quarter. Third quarter loan prepayment fees were less than $0.1 million, compared with $0.2 million for the second quarter. Net interest margin (taxable-equivalent) for the third quarter was 3.03% compared with 3.11% for the second quarter.

Credit loss expense for the third quarter was $5.2 million and included a $5.2 million provision for loan losses and a recovery for off-balance sheet items of less than $0.1 million. For the second quarter, credit loss expense was negative $0.1 million and included a $0.5 million provision for loan losses and a $0.6 million recovery for off-balance sheet items.

Noninterest income for the third quarter increased $3.3 million to $11.2 million from $7.9 million for the second quarter. The increase primarily reflected a $4.0 million gain on the sale-and-leaseback of a branch property, offset by a $0.6 million decline in other operating income. The volume of SBA loans sold in the third quarter increased to $21.0 million from $19.9 million for the second quarter while trade premiums decreased to 6.84% for the third quarter from 7.75% for the second quarter.

Noninterest expense for the third quarter was relatively consistent with the prior quarter at $34.2 million. Occupancy and equipment expense increased by $0.3 million and professional fees increased by $0.2 million. These increases were offset by $0.2 million of lower advertising and promotion expense and a $0.3 million decline in other expenses. The efficiency ratio for the third quarter improved to 51.82%, from 54.11% for the prior quarter due to the higher revenue.

Hanmi recorded a provision for income taxes of $7.9 million for the third quarter, compared with $8.5 million for the second quarter representing an effective tax rate of 29.6% compared with 29.3% for the second quarter. For the first nine months of 2023, the effective tax rate was 29.5% compared with 28.9% for the same period a year ago.

Financial Position
Total assets at September 30, 2023 increased by $5.2 million, to $7.35 billion from $7.34 billion at June 30, 2023. Loans receivable increased by $59.3 million and prepaid expenses and other assets increased by $16.6 million, reflecting the recognition of a $3.5 million right-of-use asset from the sale-leaseback of a branch property, the recognition of additional $3.4 million right-of-use assets related to new and renewed branch premises, a $4.6 million increase in current taxes receivable, and a $5.0 million low-income housing tax credit investment. These increases were partially offset by a $55.9 million decrease in cash and due from banks, and a $19.4 million decrease in securities available for sale.

Loans receivable, before the allowance for credit losses, were $6.02 billion at quarter-end, up 0.9% from June 30, 2023. Loans held for sale, representing the guaranteed portion of SBA 7(a) loans, were $11.7 million at the end of the third quarter, compared with $7.3 million at the end of the prior quarter.

New loan production was $336.3 million for the third quarter, at a weighted average rate of 7.80% while $62.1 million of loans paid off during the quarter at an average rate of 7.09%. The higher loan production reflects higher demand balanced across most of our business lines.

Commercial real estate loan production for the second quarter was $106.2 million. Commercial and industrial loan production was $67.9 million, SBA loan production was $36.1 million, equipment finance production was $71.1 million and residential mortgage loan production was $55.0 million.

Deposits were $6.26 billion at the end of the third quarter, a decline of $55.7 million, or 0.9%, from $6.32 billion at the end of the prior quarter. The decrease was primarily due to a $44.9 million decline in noninterest-bearing demand deposits, a $8.9 million decline in interest-bearing demand deposits and a $4.7 million decline in money market and savings deposits. These declines were offset by an increase in time deposits. Noninterest-bearing demand deposits represented 34.5% of total deposits at quarter-end and the loan-to-deposit ratio was 96.2%.

Stockholders’ equity at September 30, 2023 was $663.4 million, compared with $668.6 million at June 30, 2023. The decrease was primarily due to a $14.8 million increase in unrealized after-tax losses on securities available for sale due to changes in intermediate-term interest rates during the third quarter. Also, Hanmi repurchased 100,000 shares during the third quarter at an average share price of $19.02. At September 30, 2023, 459,972 shares remain under the Company’s share repurchase program. Offsetting this decrease was $11.1 million of third quarter net income net of dividends paid. Tangible common stockholders’ equity was $652.2 million, or 8.89% of tangible assets, at September 30, 2023, compared with $657.4 million, or 8.96% of tangible assets at the end of the second quarter. Tangible book value per share was $21.45 at September 30, 2023, compared with $21.56 at June 30, 2023. Refer to “Non-GAAP Financial measures” for details.

Hanmi and the Bank exceeded the minimum regulatory capital requirements and the Bank continues to exceed the minimum for the “well capitalized” category. At September 30, 2023, Hanmi’s preliminary Common equity Tier 1 capital ratio was 11.95% and its Total risk-based capital ratio was 15.07%, compared with 11.90% and 15.11%, respectively, at the end of the second quarter.

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.16% of loans at the end of the third quarter, compared with 0.23% at the end of the prior quarter.

Special mention loans were $76.5 million at the end of the third quarter, compared with $44.6 million at June 30, 2023. The $31.9 million increase in special mention loans included new downgrades to special mention of $35.8 million offset by upgrades to pass of $2.1 million, downgrades from special mention of $0.8 million, and payoffs of $1.0 million. Included in new downgrades was a $28.3 million completed construction loan for a memory-care and assisted living facility that had not yet achieved stabilization.

Classified loans were $33.1 million at September 30, 2023, down from $38.8 million at the end of the prior quarter. The $5.7 million decrease was primarily driven by charge-offs of $8.5 million, amortization, paydowns and payoffs of $2.4 million and other dispositions of $1.4 million, offset by new downgrades to classified of $6.6 million.

Nonperforming loans were $15.8 million at September 30, 2023, down from $22.2 million at the end of the prior quarter. The decline was primarily due to $8.3 million of charge-offs, including $6.1 million of charge-offs on $11.0 million of previously identified classified loans. As a percentage of the loan portfolio, nonperforming loans were 0.26% at quarter-end, compared with 0.37% at the end of the second quarter.

Nonperforming assets were $15.9 million at the end of the third quarter, down from $22.3 million at the end of the second quarter. As a percentage of total assets, nonperforming assets were 0.22% at quarter-end, compared with 0.30% at June 30, 2023.

Gross charge-offs for the third quarter were $9.4 million, compared with $2.7 million for the second quarter. Third quarter gross charge-offs primarily consisted of $6.1 million of commercial and industrial loans, $2.8 million of equipment financing agreements, $0.2 million of SBA loans secured by business assets and $0.2 million of SBA loans secured by real estate. The $6.1 million of commercial and industrial loan charge-offs relate to the previously described classified loans. Recoveries of previously charged-off loans for the third quarter were $0.5 million, compared with $1.0 million for the prior quarter. Recoveries during the third quarter consisted of $0.3 million of equipment financing agreements, $0.1 million in commercial and industrial loans and $0.1 million of SBA loans secured by real estate and business assets.

As a result, there were net charge-offs of $8.9 million for the third quarter, compared with net charge-offs of $1.7 million for the prior quarter. For the third quarter, net charge-offs represented 0.60% of average loans on an annualized basis, compared with net charge-offs of 0.12% of average loans for the second quarter on an annualized basis.

The allowance for credit losses was $67.3 million at September 30, 2023, down from $71.0 million at June 30, 2023. The ratio of the allowance for credit losses to loans was 1.12% at the end of the third quarter, down from 1.19% at the end of the second quarter. Specific allowances for loans decreased $4.5 million, principally due to charge-offs, while the allowance for quantitative and qualitative considerations increased $0.8 million.

Corporate Developments
On July 27, 2023, Hanmi’s Board of Directors declared a cash dividend on its common stock for the third quarter of 2023 of $0.25 per share. Hanmi paid the dividend on August 23, 2023, to stockholders of record as of the close of business on August 7, 2023.

Earnings Conference Call
Hanmi Bank will host its third quarter 2023 earnings conference call today, October 24, 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 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 that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, and the cost we pay to retain and attract deposits and secure other types of funding;
• our ability to enter new markets successfully and capitalize on growth opportunities;
• the current or anticipated impact of military conflict, terrorism or other geopolitical events;
• a potential government shutdown;
• 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

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