LOS ANGELES, July 21, 2026 -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the second quarter of 2026.

Net income for the second quarter of 2026 was $23.5 million, or $0.79 per diluted share, compared with $22.6 million, or $0.75 per diluted share for the first quarter of 2026. The return on average assets for the second quarter was 1.20% and the return on average equity was 11.09%, compared with a return on average assets of 1.18% and a return on average equity of 10.86% for the first quarter of 2026.

CEO Commentary

“Hanmi delivered another quarter of strong earnings growth, reflecting consistent execution across our business,” said Bonnie Lee, President and Chief Executive Officer. “Our capital position remained healthy while returning 58% of earnings to shareholders in the form of dividends and share repurchases. Return on average equity increased to 11.1%, supported by robust deposit growth, solid loan production, lower funding costs, and prudent expense management. Deposits grew 2.3% sequentially, with noninterest-bearing deposits increasing 5.2%, underscoring the strength of our relationship-based banking model and the value of our franchise.”

“Consistent with our strategy, we maintained a steady pace of loan production while continuing to diversify our loan portfolio. Importantly, credit quality remained excellent, reflecting our prudent underwriting standards and disciplined approach to risk management.”

“Based on our strong first-half performance, robust loan and deposit pipelines, and the momentum we are seeing across the business, we remain optimistic about our outlook and are confident in our ability to deliver continued earnings growth and strong financial performance through the second half of 2026,” concluded Lee.

Second Quarter 2026 Highlights:

  • Net income was $23.5 million, or $0.79 per diluted share, up 4.2% from the first quarter, driven by continued growth in net interest income and lower credit loss expense.
  • Return on average assets and return on average equity during the second quarter were 1.20% and 11.09%, respectively.
  • Deposits increased 2.3% to $7.0 billion from the prior quarter and noninterest-bearing demand deposits increased to 31% of total deposits, from 30% for the prior quarter.
  • Net interest income increased 1.0% from the prior quarter, driven by the growth in commercial real estate and commercial and industrial lending. The increase was further supported by an improved funding mix, including lower-cost interest-bearing deposits and reduced borrowings.
  • Net interest margin decreased two basis points to 3.36%, due primarily to normalization of FHLB dividend income, which elevated interest income in the prior quarter.
  • Asset quality remained strong as nonperforming assets to total assets was 0.12%, an improvement of four basis points from the prior quarter, and nonperforming loans to total loans was 0.15%, also an improvement of four basis points from the prior quarter.
  • Hanmi returned 58% of second-quarter net earnings to shareholders in the form of $8.3 million in dividends and $5.2 million in share repurchases; capital ratios remained healthy with tangible common equity to tangible assets at 10.03%.(1)

(1) Refer to “Non-GAAP Financial Measures” for further details.

For more information about Hanmi, please see the Q2 2026 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at and via a current report on Form 8-K on the website of the Securities and Exchange Commission at . 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)

 As of or for the Three Months Ended  Amount Change  Jun 30,  Mar 31,  Dec 31,  Sep 30,  Jun 30,  Q2-26  Q2-26  2026  2026  2025  2025  2025  vs. Q1-26  vs. Q2-25                      Net income$23,505  $22,557  $21,239  $22,061  $15,117  $948  $8,388 Net income per diluted common share$0.79  $0.75  $0.70  $0.73  $0.50  $0.04  $0.29                      Assets$8,001,473  $7,839,227  $7,869,185  $7,856,731  $7,862,363  $162,246  $139,110 Loans$6,535,312  $6,545,466  $6,563,367  $6,528,259  $6,305,957  $(10,154) $229,355 Deposits$6,955,342  $6,800,622  $6,677,650  $6,766,639  $6,729,122  $154,720  $226,220                      Return on average assets 1.20%  1.18%  1.07%  1.12%  0.79%  0.02   0.41 Return on average stockholders’ equity 11.09%  10.86%  10.14%  10.69%  7.48%  0.23   3.61                      Net interest margin 3.36%  3.38%  3.28%  3.22%  3.07%  -0.02   0.29 Efficiency ratio(1) 54.07%  53.48%  54.95%  52.65%  55.74%  0.59   -1.67                      Tangible common equity to tangible assets(2) 10.03%  10.11%  9.99%  9.80%  9.58%  -0.08   0.45 Tangible common equity per common share(2)$27.04  $26.56  $26.27  $25.64  $24.91   0.48   2.13                                           (1 )Noninterest expense divided by net interest income plus noninterest income.          (2) Refer to “Non-GAAP Financial Measures” for further details.          

Results of Operations

Net interest income increased $0.7 million, or 1.0%, to $63.9 million for the second quarter of 2026, from $63.2 million for the first quarter. This increase was principally due to higher interest income on loans, which increased by $0.9 million from the first quarter, as well as a $0.8 million increase in interest income from securities and interest-bearing deposits in other institutions. Interest expense on deposits, however, increased by $1.0 million from the first quarter.

Net interest margin (taxable equivalent) declined by two basis points to 3.36%, from 3.38% for the first quarter of 2026. This decline was driven by lower contributions from loans and FHLB stock, with unfavorable impacts of five basis points and three basis points, respectively, compared to the first quarter. Partially offsetting the decline were higher contributions from borrowings and interest-bearing deposits, with favorable impacts of three basis points each.

While the average yield on loans for the second quarter remained unchanged at 5.90%, the average balance of loans for the second quarter was $6.44 billion, up 0.1% from the previous quarter. The cost of interest-bearing deposits for the second quarter was 3.17%, down three basis points from the first quarter, and the average balance of interest-bearing deposits was $4.78 billion, up 2.7% from the previous quarter. The ratio of average loans to average deposits for the second quarter was 95.5%, compared with 97.5% for the previous quarter.

 For the Three Months Ended (in thousands) Percentage Change  Jun 30, Mar 31,  Dec 31,  Sep 30,  Jun 30,  Q2-26  Q2-26 Net Interest Income2026 2026  2025  2025  2025  vs. Q1-26  vs. Q2-25                     Interest and fees on loans(1)$94,808 $93,866  $96,592  $95,691  $92,589   1.0%  2.4%Interest on securities 6,337  5,959   6,323   6,592   6,261   6.3%  1.2%Dividends on FHLB stock 219  831   361   357   354   -73.6%  -38.1%Interest on deposits in other banks 1,958  1,496   1,837   2,586   2,129   30.9%  -8.0%Total interest and dividend income$103,322 $102,152  $105,113  $105,226  $101,333   1.1%  2.0%                    Interest on deposits 37,774  36,738   39,978   42,244   41,924   2.8%  -9.9%Interest on borrowings 154  676   695   324   684   -77.2%  -77.5%Interest on subordinated debentures 1,537  1,535   1,561   1,579   1,586   0.1%  -3.1%Total interest expense 39,465  38,949   42,234   44,147   44,194   1.3%  -10.7%Net interest income$63,857 $63,203  $62,879  $61,079  $57,139   1.0%  11.8%                    (1)Includes loans held for sale.                   
 For the Three Months Ended (in thousands) Percentage Change Average Earning Assets and Interest-bearingJun 30, Mar 31,  Dec 31,  Sep 30,  Jun 30,  Q2-26  Q2-26 Liabilities2026 2026  2025  2025  2025  vs. Q1-26  vs. Q2-25 Loans(1)$6,441,853 $6,434,316  $6,456,239  $6,304,435  $6,257,741   0.1%  2.9%Securities 950,786  921,065   955,811   985,888   993,975   3.2%  -4.3%FHLB stock 16,385  16,385   16,385   16,385   16,385   0.0%  0.0%Interest-bearing deposits in other banks 221,361  171,953   191,731   239,993   200,266   28.7%  10.5%Average interest-earning assets$7,630,385 $7,543,719  $7,620,166  $7,546,701  $7,468,367   1.1%  2.2%                    Demand: interest-bearing$81,682 $74,963  $77,297  $86,839  $81,308   9.0%  0.5%Money market and savings 2,056,148  2,063,186   2,130,616   2,122,967   2,109,221   -0.3%  -2.5%Time deposits 2,646,480  2,522,505   2,506,582   2,494,285   2,434,659   4.9%  8.7%Average interest-bearing deposits 4,784,310  4,660,654   4,714,495   4,704,091   4,625,188   2.7%  3.4%Borrowings 15,330  69,388   64,565   27,772   60,134   -77.9%  -74.5%Subordinated debentures 130,695  130,541   130,385   130,766   130,880   0.1%  -0.1%Average interest-bearing liabilities$4,930,335 $4,860,583  $4,909,445  $4,862,629  $4,816,202   1.4%  2.4%                    Average Noninterest Bearing Deposits                   Demand deposits - noninterest bearing$1,963,242 $1,937,628  $1,969,908  $1,960,331  $1,934,985   1.3%  1.5%                    (1)Includes loans held for sale.                   
 For the Three Months Ended  Yield/Rate Change Jun 30,  Mar 31, Dec 31,  Sep 30,  Jun 30,  Q2-26  Q2-26 Average Yields and Rates2026  2026 2025  2025  2025  vs. Q1-26  vs. Q2-25 Loans(1) 5.90% 5.90%  5.94%  6.03%  5.93%  0.00   -0.03 Securities(2) 2.69% 2.62%  2.67%  2.70%  2.55%  0.07   0.14 FHLB stock 5.36% 20.56%  8.75%  8.65%  8.65%  -15.20   -3.29 Interest-bearing deposits in other banks 3.55% 3.53%  3.80%  4.27%  4.26%  0.02   -0.71 Interest-earning assets 5.43% 5.48%  5.48%  5.54%  5.44%  -0.05   -0.01                     Interest-bearing deposits 3.17% 3.20%  3.36%  3.56%  3.64%  -0.03   -0.47 Borrowings 4.06% 3.94%  4.27%  4.63%  4.58%  0.12   -0.52 Subordinated debentures 4.70% 4.70%  4.79%  4.83%  4.84%  0.00   -0.14 Interest-bearing liabilities 3.21% 3.25%  3.41%  3.60%  3.68%  -0.04   -0.47                     Net interest margin (taxable equivalent basis) 3.36% 3.38%  3.28%  3.22%  3.07%  -0.02   0.29                     Cost of deposits 2.25% 2.26%  2.37%  2.51%  2.56%  -0.01   -0.31                     (1)Includes loans held for sale.                   (2)Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.      

Credit loss expense for the second quarter of 2026 was $1.2 million, compared with $2.9 million for the first quarter. The $1.7 million decline was due to lower net charge-offs during the second quarter. Credit loss expense during the second quarter included a $1.3 million provision for loan losses and a negative provision of $0.1 million for off-balance sheet items. First-quarter credit loss expense included a $3.2 million provision for loan losses and a negative provision of $0.3 million for off-balance sheet items.

Noninterest income was $8.3 million, down 2.2% from $8.5 million for the first quarter of 2026, primarily due to a $0.8 million decrease in gain on sales of SBA loans. The gain was $1.3 million for the second quarter of 2026, compared with $2.1 million for the first quarter of 2026. The decrease in gain on sales of SBA loans was partially offset by a $0.4 million increase in trade finance and other service charges and fees and modest increases in the other noninterest income categories.

The volume of SBA loans sold for the second quarter of 2026 decreased to $20.9 million from $32.5 million for the first quarter, while trade premiums increased to 7.92% from 7.88% for the first quarter. Residential mortgage loans sold for the second quarter were $30.6 million with a premium of 2.00%, compared with $31.7 million and 2.50% for the first quarter. The gain on sales of residential mortgage loans was $0.4 million for the second quarter, compared with $0.5 million for the first quarter.

 For the Three Months Ended (in thousands) Percentage Change  Jun 30, Mar 31,  Dec 31,  Sep 30,  Jun 30,  Q2-26  Q2-26 Noninterest Income2026 2026  2025  2025  2025  vs. Q1-26  vs. Q2-25 Service charges on deposit accounts$2,102 $2,127  $2,196  $2,160  $2,169   -1.2%  -3.1%Trade finance and other service charges and fees 1,902  1,501   1,735   1,551   1,461   26.7%  30.2%Servicing income 955  870   924   924   754   9.8%  26.7%Bank-owned life insurance income 799  610   315   1,259   708   31.0%  12.9%All other operating income 915  844   758   973   819   8.4%  11.7%Service charges, fees & other 6,673  5,952   5,928   6,867   5,911   12.1%  12.9%                    Gain on sale of SBA loans 1,318  2,102   1,790   1,857   2,160   -37.3%  -39.0%Gain on sale of residential mortgage loans 357  485   581   1,156   —   -26.4%  — Total noninterest income$8,348 $8,539  $8,299  $9,880  $8,071   -2.2%  3.4%

Noninterest expense was $39.0 million for the second quarter of 2026, up 1.7% from $38.4 million for the first quarter, primarily due to a $0.8 million increase in salaries and employee benefits and a $0.4 million increase in other real estate owned (OREO) expense. Salaries and employee benefits increased because of the additional business day in the second quarter and annual merit increases, while the increase in OREO expense reflected the absence of the first-quarter gain on sale of OREO. These increases were partially offset by a $0.8 million decrease in professional fees that were attendant to the first-quarter resolution of several administrative items. The efficiency ratio increased to 54.07% for the second quarter, compared with 53.48% for the previous quarter.

 For the Three Months Ended (in thousands) Percentage Change  Jun 30, Mar 31,  Dec 31,  Sep 30,  Jun 30,  Q2-26  Q2-26  2026 2026  2025  2025  2025  vs. Q1-26  vs. Q2-25 Noninterest Expense                   Salaries and employee benefits$22,784 $21,956  $22,472  $22,163  $22,069   3.8%  3.2%Occupancy and equipment 4,383  4,414   4,339   4,507   4,344   -0.7%  0.9%Data processing 4,555  4,386   4,098   3,860   3,727   3.9%  22.2%Professional fees 1,997  2,780   2,343   1,978   1,725   -28.2%  15.8%Supplies and communication 491  556   573   423   515   -11.7%  -4.7%Advertising and promotion 679  688   1,010   712   798   -1.3%  -14.9%All other operating expenses 4,103  3,849   3,795   3,665   3,567   6.6%  15.0%Subtotal 38,992  38,629   38,630   37,308   36,745   0.9%  6.1%                    Other real estate owned expense (income) 6  (345)  474   17   (461)  101.7%  101.3%Repossessed personal property expense (income) 41  84   5   32   63   -51.2%  -34.9%Total noninterest expense$39,039 $38,368  $39,109  $37,357  $36,347   1.7%  7.4%

The effective tax rate was 26.5% for the second quarter of 2026, compared with 26.0% for the first quarter of 2026.

Financial Position

Total assets at June 30, 2026 increased 2.1%, or $162.2 million, to $8.00 billion from $7.84 billion at March 31, 2026. This increase was due primarily to a $77.2 million increase in cash and due from banks, a $60.9 million increase in securities available for sale, and a $21.3 million increase in prepaid expenses and other assets. The increase in prepaid expenses and other assets was primarily due to estimated income tax payments made during the second quarter.

Total loans, excluding the allowance for credit losses and loans held for sale, were $6.54 billion at June 30, 2026, down 0.2% from $6.55 billion at March 31, 2026.

Loans held for sale were $17.0 million at June 30, 2026, up from $4.9 million at March 31, 2026. At the end of the second quarter, loans held for sale consisted of $12.0 million representing the guaranteed portion of SBA 7(a) loans and $5.0 million of residential mortgage loans.

 As of (in thousands) Percentage Change  Jun 30, Mar 31,  Dec 31,  Sep 30,  Jun 30,  Q2-26  Q2-26  2026 2026  2025  2025  2025  vs. Q1-26  vs. Q2-25 Loan Portfolio                   Commercial real estate loans$4,022,320 $3,998,144  $4,030,105  $4,015,291  $3,948,922   0.6%  1.9%Residential/consumer loans 978,881  1,002,223   1,049,872   1,043,577   993,869   -2.3%  -1.5%Commercial and industrial loans 1,171,272  1,152,544   1,074,907   1,052,522   917,995   1.6%  27.6%Equipment finance 362,839  392,555   408,483   416,869   445,171   -7.6%  -18.5%Total loans held for investment 6,535,312  6,545,466   6,563,367   6,528,259   6,305,957   -0.2%  3.6%Loans held for sale 16,969  4,932   7,403   6,512   49,611   244.1%  -65.8%Total loans$6,552,281 $6,550,398  $6,570,770  $6,534,771  $6,355,568   0.0%  3.1%
 As of  Jun 30,  Mar 31,  Dec 31,  Sep 30,  Jun 30,  2026  2026  2025  2025  2025 Composition of Loan Portfolio              Commercial real estate loans 61.4%  61.0%  61.3%  61.4%  62.2%Residential/consumer loans 14.9%  15.3%  16.0%  16.0%  15.6%Commercial and industrial loans 17.9%  17.6%  16.4%  16.1%  14.4%Equipment finance 5.5%  6.0%  6.2%  6.4%  7.0%Total loans held for investment 99.7%  99.9%  99.9%  99.9%  99.2%Loans held for sale 0.3%  0.1%  0.1%  0.1%  0.8%Total loans 100.0%  100.0%  100.0%  100.0%  100.0%

New loan production was $371.9 million for the second quarter of 2026 at an average rate of 6.59%, while payoffs were $156.4 million at an average rate of 6.39%.

 For the Three months Ended (in thousands)  Jun 30,  Mar 31,  Dec 31,  Sep 30,  Jun 30,  2026  2026  2025  2025  2025 New Loan Production              Commercial real estate loans$170,080  $131,426  $125,866  $176,826  $111,993 Residential/consumer loans 50,010   29,074   70,268   103,247   83,761 Commercial and industrial loans 89,227   134,717   82,079   211,454   53,444 SBA loans 37,109   40,652   44,065   44,931   46,829 Equipment finance 25,450   42,051   52,521   34,315   33,567 Subtotal 371,876   377,920   374,799   570,773   329,594                               Payoffs (156,407)  (198,936)  (123,086)  (142,963)  (119,139)Amortization (121,208)  (133,396)  (133,992)  (60,939)  (151,357)Loan sales (54,761)  (64,690)  (63,642)  (100,452)  (35,388)Net line utilization (47,762)  4,373   (16,072)  (39,497)  12,435 Charge-offs & OREO (1,892)  (3,172)  (2,899)  (4,620)  (12,377)               Loans held for investment-beginning balance 6,545,466   6,563,367   6,528,259   6,305,957   6,282,189 Loans held for investment-ending balance$6,535,312  $6,545,466  $6,563,367  $6,528,259  $6,305,957 

Deposits were $6.96 billion at the end of the second quarter of 2026, up $154.7 million, or 2.3%, from $6.80 billion at the end of the prior quarter. Driving the increase was a $104.7 million increase in noninterest-bearing deposits and a $54.4 million increase in time deposits over $250,000. Noninterest-bearing demand deposits represented 30.7% of total deposits at June 30, 2026 and the loan-to-deposit ratio was 94.0%.

 As of (in thousands) Percentage Change  Jun 30, Mar 31,  Dec 31,  Sep 30,  Jun 30,  Q2-26  Q2-26  2026 2026  2025  2025  2025  vs. Q1-26  vs. Q2-25 Deposit Portfolio                   Demand: noninterest-bearing$2,135,418 $2,030,743  $2,015,212  $2,087,132  $2,105,369   5.2%  1.4%Demand: interest-bearing 80,783  78,341   74,799   86,834   90,172   3.1%  -10.4%Money market and savings 2,084,572  2,116,073   2,084,218   2,094,028   2,092,847   -1.5%  -0.4%Time deposits $250,000 and less 1,314,544  1,318,250   1,277,382   1,235,755   1,198,472   -0.3%  9.7%Core deposits 5,615,317  5,543,407   5,451,611   5,503,749   5,486,860   1.3%  2.3%Time deposits over $250,000 1,073,083  1,018,712   987,536   1,024,378   1,006,750   5.3%  6.6%State of California time deposits 180,000  150,000   150,000   150,000   150,000   20.0%  20.0%Brokered time deposits 86,942  88,503   88,503   88,512   85,512   -1.8%  1.7%Total deposits$6,955,342 $6,800,622  $6,677,650  $6,766,639  $6,729,122   2.3%  3.4%
 As of  Jun 30,  Mar 31,  Dec 31,  Sep 30,  Jun 30,  2026  2026  2025  2025  2025 Composition of Deposit Portfolio              Demand: noninterest-bearing 30.7%  29.9%  30.2%  30.8%  31.3%Demand: interest-bearing 1.2%  1.1%  1.1%  1.3%  1.3%Money market and savings 29.9%  31.1%  31.2%  31.0%  31.1%Time deposits $250,000 and less 18.9%  19.4%  19.1%  18.3%  17.8%Core deposits 80.7%  81.5%  81.6%  81.4%  81.5%Time deposits over $250,000 15.4%  15.0%  14.9%  15.1%  15.0%State of California time deposits 2.6%  2.2%  2.2%  2.2%  2.2%Brokered time deposits 1.3%  1.3%  1.3%  1.3%  1.3%Total deposits 100.0%  100.0%  100.0%  100.0%  100.0%

Stockholders’ equity at June 30, 2026 was $812.7 million, up $9.9 million, or 1.2%, from $802.8 million at March 31, 2026. Offsetting the increase to stockholders’ equity from second quarter net income of $23.5 million were dividends of $8.3 million, share repurchases of $5.2 million, which included $0.4 million in purchases of vested employee stock in respect of Hanmi's equity compensation programs, and a $1.0 million increase in unrealized after-tax losses on securities available for sale. During the second quarter, under its share repurchase program, Hanmi repurchased 160,000 shares of common stock at an average price of $30.24. As of June 30, 2026, there were 1.99 million shares available under the share repurchase program. In addition to the share repurchase program, Hanmi purchased 15,134 shares of common stock surrendered by employees to satisfy their tax liabilities upon the second-quarter vesting of their equity compensation awards.

Tangible common equity per share at the end of the second quarter of 2026 was $27.04, up 1.8% from $26.56 at the end of the first quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continued to exceed the minimum for the “well capitalized” category.

 As of  Ratio Change Jun 30,  Mar 31, Dec 31,  Sep 30,  Jun 30,  Q2-26  Q2-26  2026  2026 2025  2025  2025  vs. Q1-26  vs. Q2-25 Regulatory Capital ratios(1)                   Hanmi Financial                   Total risk-based capital 15.29% 15.22%  15.06%  15.05%  15.20%  0.07   0.09 Tier 1 risk-based capital 12.61% 12.52%  12.37%  12.33%  12.46%  0.09   0.15 Common equity tier 1 capital 12.28% 12.20%  12.05%  12.00%  12.12%  0.08   0.16 Tier 1 leverage capital ratio 10.94% 10.93%  10.70%  10.64%  10.63%  0.01   0.31 Hanmi Bank                   Total risk-based capital 14.48% 14.45%  14.25%  14.28%  14.39%  0.03   0.09 Tier 1 risk-based capital 13.40% 13.37%  13.17%  13.20%  13.32%  0.03   0.08 Common equity tier 1 capital 13.40% 13.37%  13.17%  13.20%  13.32%  0.03   0.08 Tier 1 leverage capital ratio 11.71% 11.74%  11.47%  11.46%  11.43%  -0.03   0.28                     (1) Preliminary ratios for June 30, 2026                   

Asset Quality

 As of or for the Three Months Ended (in thousands)  Amount Change  Jun 30,  Mar 31,  Dec 31,  Sep 30,  Jun 30,  Q2-26  Q2-26  2026  2026  2025  2025  2025  vs. Q1-26  vs. Q2-25 Nonperforming Loans and Assets                                         Delinquent loans:                    Loans, 30 to 89 days past due and still accruing$32,773  $13,274  $17,610  $11,560  $10,953  $19,499  $21,820                      Nonperforming assets:                    Nonaccrual loans$9,931  $12,420  $18,112  $19,369  $25,967  $(2,489) $(16,036)Loans 90 days or more past due and still accruing —   —   —   —   —   —   — Nonperforming loans 9,931   12,420   18,112   19,369   25,967   (2,489)  (16,036)Other real estate owned, net —   —   1,980   1,995   —   —   — Nonperforming assets(1)$9,931  $12,420  $20,092  $21,364  $25,967  $(2,489) $(16,036)                     Delinquent loans to total loans 0.50%  0.20%  0.27%  0.18%  0.17%  0.30   0.33 Nonperforming loans to total loans 0.15%  0.19%  0.28%  0.30%  0.41%  -0.04   -0.26 Nonperforming assets to total assets 0.12%  0.16%  0.26%  0.27%  0.33%  -0.04   -0.21                      (1)Excludes repossessed personal property of $0.3 million, $0.3 million, $0.6 million, $0.4 million, and $0.6 million as of Q2-26, Q1-26, Q4-25, Q3-25, and Q2-25, respectively. 

Loans 30 to 89 days past due and still accruing were $32.8 million, or 0.50% of loans, at the end of the second quarter of 2026, compared with $13.3 million, or 0.20% of loans, at the end of the first quarter of 2026. The $19.5 million increase was primarily due to a $21.2 million commercial real estate loan, identified as special mention in the first quarter, that became delinquent during the second quarter.

Nonaccrual loans were $9.9 million, or 0.15% of loans, at June 30, 2026, compared with $12.4 million, or 0.19% of loans, at March 31, 2026. The decrease for the second quarter reflects the sale of a $3.2 million commercial real estate loan on nonaccrual status and $1.6 million of equipment finance agreement charge-offs, partially offset by $2.9 million of new nonaccrual loans and equipment finance agreements.

Nonperforming assets were $9.9 million, or 0.12% of total assets, at June 30, 2026, compared with $12.4 million, or 0.16% of total assets, at March 31, 2026. The decline reflects the changes described in the above paragraph.

 As of (in thousands)  Amount Change  Jun 30,  Mar 31,  Dec 31,  Sep 30,  Jun 30,  Q2-26  Q2-26  2026  2026  2025  2025  2025  vs. Q1-26  vs. Q2-25 Criticized Loans                    Special mention$68,198  $93,682  $71,113  $16,775  $12,700  $(25,484) $55,498 Classified 45,748   22,736   25,891   28,590   33,857   23,012   11,891 Total criticized loans(1)$113,946  $116,418  $97,004  $45,365  $46,557  $(2,472) $67,389                      Criticized loans to total loans 1.74%  1.78%  1.48%  0.69%  0.74%  -0.04   1.00                      (1)Includes nonaccrual loans of $9.9 million, $12.4 million, $18.1 million, $19.4 million, and $24.1 million as of Q2-26, Q1-26, Q4-25, Q3-25, and Q2-25, respectively. 

Criticized loans were $113.9 million for the second quarter of 2026, compared with $116.4 million for the first quarter of 2026. This $2.5 million decrease in criticized loans included a $25.5 million decrease for special mention loans, partially offset by a $23.0 million increase for classified loans. Both the special mention decrease and classified increase were primarily due to the downgrade of three special mention loans totaling $23.6 million to the classified category, which included the previously mentioned $21.2 million commercial real estate loan.

There were no transfers of criticized loans into other-real-estate-owned during the second quarter of 2026. As a percent of total loans, criticized loans were 1.74% as of June 30, 2026, compared with 1.78% as of March 31, 2026.

 As of or for the Three Months Ended (in thousands)  Jun 30,  Mar 31,  Dec 31,  Sep 30,  Jun 30,  2026  2026  2025  2025  2025 Allowance for credit losses related to loans:              Balance at beginning of period$70,468  $69,903  $69,781  $66,756  $70,597 Credit loss expense (recovery) on loans 1,271   3,163   1,701   2,543   7,523 Net loan (charge-offs) recoveries (1,264)  (2,598)  (1,579)  482   (11,364)Balance at end of period$70,475  $70,468  $69,903  $69,781  $66,756                Net loan charge-offs (recoveries) to average loans(1) 0.08%  0.16%  0.10%  -0.03%  0.73%Allowance for credit losses to loans 1.08%  1.08%  1.07%  1.07%  1.06%               Allowance for credit losses related to off-balance sheet items:              Balance at beginning of period$2,078  $2,349  $2,107  $2,506  $2,399 Credit loss expense (recovery) on off-balance sheet items (85)  (271)  242   (399)  107 Balance at end of period$1,993  $2,078  $2,349  $2,107  $2,506                Unused commitments to extend credit$946,544  $891,594  $930,122  $952,475  $915,847                (1)Annualized              

The allowance for credit losses was $70.5 million, or 1.08% of loans, at both June 30 and March 31, 2026. Collectively evaluated allowances increased $0.6 million, while specific allowances decreased $0.6 million.

Gross charge-offs for the second quarter of 2026 were $1.9 million, compared with $3.2 million for the preceding quarter. Charge-offs during the second quarter included $1.6 million of equipment financing agreements. Recoveries of previously charged off loans were $0.6 million, substantially all of which were equipment financing agreements. As a result, there were $1.3 million of net charge-offs for the second quarter of 2026, or 0.08% of loans (annualized), compared with $2.6 million, or 0.16% of loans, for the first quarter of 2026.

Corporate Developments

On April 23, 2026, Hanmi’s Board of Directors declared a cash dividend on its common stock of $0.28 per share for the 2026 second quarter. Hanmi paid the dividend on May 20, 2026, to stockholders of record as of the close of business on May 4, 2026.

Earnings Conference Call

Hanmi Bank will host its second quarter 2026 earnings conference call today, July 21, 2026, 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 https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

About Hanmi Financial Corporation

Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 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;
  • 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 investor sentiment or 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, the level of loan sales 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;
  • the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
  • risks of natural disasters;
  • legal proceedings and litigation brought against us;
  • risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors;
  • failure to maintain current technologies;
  • risks associated with Small Business Administration loans;
  • failure to attract, develop, or retain key employees;
  • our ability to access cost-effective funding;
  • the imposition of tariffs or other domestic or international governmental policies, trade restrictions, and any retaliatory measures impacting our borrowers and the broader economy;
  • the impact of a potential federal government shutdown, which may impact on our ability to effect sales of Small Business Administration loans or debt ceiling impasses or fiscal uncertainty;
  • changes in liquidity, including the size and composition of our deposit portfolio and 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 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, including the costs associated with the evaluation of any strategic opportunities and the overall effects of any acquisitions or dispositions we may make;
  • the adequacy of and changes in the economic assumptions and methodology for computing 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;
  • the inability of third-party service providers to perform their obligations to us; and
  • the ability of the Company to withstand disruptions that may be caused by any failure of the operational systems of third parties.

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, 2025, 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

Lisa Fortuna

Investor Relations

Financial Profiles, Inc.

[email protected]

310-622-8251

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)

 June 30,  March 31,  PercentageJune 30, Percentage  2026  2026  Change2025 Change Assets           Cash and due from banks$331,206  $254,045 30.4%$380,050   -12.9%Securities available for sale, at fair value 896,610   835,725 7.3% 918,094   -2.3%Loans held for sale, at the lower of cost or fair value 16,969   4,932 244.1% 49,611   -65.8%Loans, net of allowance for credit losses 6,464,837   6,474,998 -0.2% 6,239,201   3.6%Accrued interest receivable 24,613   23,320 5.5% 23,749   3.6%Premises and equipment, net 20,251   20,015 1.2% 20,607   -1.7%Customers’ liability on acceptances 116   — —  214   -45.8%Servicing assets 6,419   6,535 -1.8% 6,420   0.0%Goodwill and other intangible assets, net 11,031   11,031 0.0% 11,031   0.0%Federal Home Loan Bank (“FHLB”) stock, at cost 16,385   16,385 0.0% 16,385   0.0%Bank-owned life insurance 56,048   56,534 -0.9% 56,985   -1.6%Prepaid expenses and other assets 156,988   135,707 15.7% 140,016   12.1%Total assets$8,001,473  $7,839,227 2.1%$7,862,363   1.8%            Liabilities and Stockholders’ Equity           Liabilities:           Deposits:           Noninterest-bearing$2,135,418  $2,030,743 5.2%$2,105,369   1.4%Interest-bearing 4,819,924   4,769,879 1.0% 4,623,753   4.2%Total deposits 6,955,342   6,800,622 2.3% 6,729,122   3.4%Accrued interest payable 27,530   30,592 -10.0% 30,567   -9.9%Bank's liability on acceptances 116   — —  214   -45.8%Borrowings —   — 0.0% 127,500   -100.0%Subordinated debentures 130,773   130,618 0.1% 130,960   -0.1%Accrued expenses and other liabilities 75,032   74,576 0.6% 81,166   -7.6%Total liabilities 7,188,793   7,036,408 2.2% 7,099,529   1.3%            Stockholders’ equity:           Common stock 34   34 0.0% 34   0.0%Additional paid-in capital 596,303   595,374 0.2% 592,825   0.6%Accumulated other comprehensive (loss) (46,552)  (45,553)2.2% (54,511)  -14.6%Retained earnings 423,499   408,327 3.7% 367,251   15.3%Less treasury stock (160,604)  (155,363)3.4% (142,765)  12.5%Total stockholders’ equity 812,680   802,819 1.2% 762,834   6.5%Total liabilities and stockholders’ equity$8,001,473  $7,839,227 2.1%$7,862,363   1.8%

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except share and per share data)

 Three Months Ended  June 30,  March 31,  Percentage  June 30,  Percentage  2026  2026  Change  2025  Change Interest and dividend income:              Interest and fees on loans$94,808  $93,866   1.0% $92,589   2.4%Interest on securities 6,337   5,959   6.3%  6,261   1.2%Dividends on FHLB stock 219   831   -73.6%  354   -38.1%Interest on deposits in other banks 1,958   1,496   30.9%  2,129   -8.0%Total interest and dividend income 103,322   102,152   1.1%  101,333   2.0%Interest expense:              Interest on deposits 37,774   36,738   2.8%  41,924   -9.9%Interest on borrowings 154   676   -77.2%  684   -77.5%Interest on subordinated debentures 1,537   1,535   0.1%  1,586   -3.1%Total interest expense 39,465   38,949   1.3%  44,194   -10.7%Net interest income before credit loss expense 63,857   63,203   1.0%  57,139   11.8%Credit loss expense 1,186   2,892   -59.0%  7,631   -84.5%Net interest income after credit loss expense 62,671   60,311   3.9%  49,508   26.6%Noninterest income:              Service charges on deposit accounts 2,102   2,127   -1.2%  2,169   -3.1%Trade finance and other service charges and fees 1,902   1,501   26.7%  1,461   30.2%Gain on sale of Small Business Administration (“SBA”) loans 1,318   2,102   -37.3%  2,160   -39.0%Gain on sale of residential mortgage loans 357   485   -26.4%  —   — Other operating income 2,669   2,324   14.8%  2,281   17.0%Total noninterest income 8,348   8,539   -2.2%  8,071   3.4%Noninterest expense:              Salaries and employee benefits 22,784   21,956   3.8%  22,069   3.2%Occupancy and equipment 4,383   4,414   -0.7%  4,344   0.9%Data processing 4,555   4,386   3.9%  3,727   22.2%Professional fees 1,997   2,780   -28.2%  1,725   15.8%Supplies and communications 491   556   -11.7%  515   -4.7%Advertising and promotion 679   688   -1.3%  798   -14.9%Other operating expenses 4,150   3,588   15.7%  3,169   31.0%Total noninterest expense 39,039   38,368   1.7%  36,347   7.4%Income before tax 31,980   30,482   4.9%  21,232   50.6%Income tax expense 8,475   7,925   6.9%  6,115   38.6%Net income$23,505  $22,557   4.2% $15,117   55.5%               Basic earnings per share:$0.79  $0.76     $0.50    Diluted earnings per share:$0.79  $0.75     $0.50                   Weighted-average shares outstanding:              Basic 29,514,712   29,629,130      29,948,836    Diluted 29,689,113   29,808,999      30,054,456    Common shares outstanding 29,650,306   29,806,694      30,176,568    

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except share and per share data)

 Six Months Ended  June 30,  June 30,  Percentage  2026  2025  Change Interest and dividend income:        Interest and fees on loans receivable$188,674  $183,476   2.8%Interest on securities 12,296   12,430   -1.1%Dividends on FHLB stock 1,050   714   47.1%Interest on deposits in other banks 3,454   3,969   -13.0%Total interest and dividend income 205,474   200,589   2.4%Interest expense:        Interest on deposits 74,512   82,483   -9.7%Interest on borrowings 830   2,708   -69.4%Interest on subordinated debentures 3,072   3,167   -3.0%Total interest expense 78,414   88,358   -11.3%Net interest income before credit loss expense 127,060   112,231   13.2%Credit loss expense 4,078   10,352   -60.6%Net interest income after credit loss expense 122,982   101,879   20.7%Noninterest income:        Service charges on deposit accounts 4,229   4,387   -3.6%Trade finance and other service charges and fees 3,403   2,858   19.1%Gain on sale of Small Business Administration (“SBA”) loans 3,421   4,161   -17.8%Gain on sale of residential mortgage loans 842   175   381.1%Other operating income 4,992   4,215   18.4%Total noninterest income 16,887   15,796   6.9%Noninterest expense:        Salaries and employee benefits 44,740   43,041   3.9%Occupancy and equipment 8,797   8,794   0.0%Data processing 8,941   7,514   19.0%Professional fees 4,777   3,194   49.6%Supplies and communications 1,047   1,031   1.6%Advertising and promotion 1,368   1,382   -1.0%Other operating expenses 7,737   6,374   21.4%Total noninterest expense 77,407   71,330   8.5%Income before tax 62,462   46,345   34.8%Income tax expense 16,400   13,556   21.0%Net income$46,062  $32,789   40.5%         Basic earnings per share:$1.54  $1.09    Diluted earnings per share:$1.54  $1.08             Weighted-average shares outstanding:        Basic 29,593,872   29,943,279    Diluted 29,770,045   30,048,704    Common shares outstanding 29,650,306   30,176,568    

Hanmi Financial Corporation and Subsidiaries

Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)

(Dollars in thousands)

 Three Months Ended  June 30, 2026  March 31, 2026  June 30, 2025     Interest Average     Interest Average     Interest Average  Average  Income / Yield /  Average  Income / Yield /  Average  Income / Yield /  Balance  Expense Rate  Balance  Expense Rate  Balance  Expense Rate Assets                       Interest-earning assets:                       Loans:                       Commercial real estate(1)$3,986,661  $57,244  5.76% $3,964,174  $55,836  5.71% $3,978,350  $56,385  5.68%Residential mortgage(1) 1,001,859   13,511  5.39%  1,035,929   14,035  5.42%  990,135   13,254  5.37%Commercial and industrial(1) 1,065,744   17,467  6.57%  1,024,117   16,970  6.72%  818,498   15,206  7.45%Consumer 5,711   92  6.44%  5,295   84  6.40%  7,786   139  7.14%Equipment finance 381,878   6,494  6.80%  404,801   6,941  6.86%  462,972   7,605  6.57%Total loans(1) 6,441,853   94,808  5.90%  6,434,316   93,866  5.90%  6,257,741   92,589  5.93%Securities(2) 950,786   6,337  2.69%  921,065   5,959  2.62%  993,975   6,261  2.55%FHLB stock 16,385   219  5.36%  16,385   831  20.56%  16,385   354  8.65%Interest-bearing deposits in other banks 221,361   1,958  3.55%  171,953   1,496  3.53%  200,266   2,129  4.26%Total interest-earning assets 7,630,385   103,322  5.43%  7,543,719   102,152  5.48%  7,468,367   101,333  5.44%                        Noninterest-earning assets:                       Cash and due from banks 48,769        52,668        53,977      Allowance for credit losses (70,249)       (69,284)       (70,222)     Other assets 255,426        247,771        250,241                              Total assets$7,864,331       $7,774,874       $7,702,363                              Liabilities and Stockholders’ Equity                       Interest-bearing liabilities:                       Deposits:                       Demand: interest-bearing$81,682  $33  0.16% $74,963  $27  0.15% $81,308  $29  0.15%Money market and savings 2,056,148   13,540  2.64%  2,063,186   13,082  2.57%  2,109,221   17,342  3.30%Time deposits 2,646,480   24,201  3.67%  2,522,505   23,629  3.80%  2,434,659   24,553  4.05%Total interest-bearing deposits 4,784,310   37,774  3.17%  4,660,654   36,738  3.20%  4,625,188   41,924  3.64%Borrowings 15,330   154  4.06%  69,388   675  3.94%  60,134   684  4.58%Subordinated debentures 130,695   1,537  4.70%  130,541   1,536  4.70%  130,880   1,586  4.84%Total interest-bearing liabilities 4,930,335   39,465  3.21%  4,860,583   38,949  3.25%  4,816,202   44,194  3.68%                        Noninterest-bearing liabilities and equity:                       Demand deposits: noninterest-bearing 1,963,242        1,937,628        1,934,985      Other liabilities 120,896        134,153        140,053      Stockholders’ equity 849,858        842,510        811,123                              Total liabilities and stockholders’ equity$7,864,331       $7,774,874       $7,702,363                              Net interest income   $63,857       $63,203       $57,139                           Cost of deposits      2.25%       2.26%       2.56%Net interest spread (taxable equivalent basis)      2.22%       2.23%       1.76%Net interest margin (taxable equivalent basis)      3.36%       3.38%       3.07%                                                                        (1)Includes average loans held for sale              (2)Yields calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.   

Hanmi Financial Corporation and Subsidiaries

Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)

(Dollars in thousands)

 Six Months Ended  June 30, 2026  June 30, 2025     Interest Average     Interest Average  Average  Income / Yield /  Average  Income / Yield /  Balance  Expense Rate  Balance  Expense Rate Assets               Interest-earning assets:               Loans:               Commercial real estate(1)$3,975,480  $113,080  5.74% $3,958,335  $111,248  5.67%Residential mortgage(1) 1,018,800   27,547  5.41%  975,579   26,004  5.38%Commercial and industrial(1) 1,045,045   34,437  6.65%  808,069   30,458  7.60%Consumer 5,504   175  6.42%  7,343   257  7.08%Equipment finance 393,276   13,435  6.83%  474,499   15,509  6.54%Loans receivable(1) 6,438,105   188,674  5.90%  6,223,825   183,476  5.94%Securities(2) 936,007   12,296  2.66%  997,716   12,430  2.52%FHLB stock 16,385   1,050  12.92%  16,385   714  8.79%Interest-bearing deposits in other banks 196,794   3,454  3.54%  188,214   3,969  4.25%Total interest-earning assets 7,587,291   205,474  5.45%  7,426,140   200,589  5.44%                Noninterest-earning assets:               Cash and due from banks 50,707        53,824      Allowance for credit losses (69,769)       (69,936)     Other assets 251,621        249,697                      Total assets$7,819,850       $7,659,725                      Liabilities and Stockholders’ Equity               Interest-bearing liabilities:               Deposits:               Demand: interest-bearing$78,341  $61  0.16% $80,344  $56  0.14%Money market and savings 2,059,647   26,622  2.61%  2,073,421   33,779  3.29%Time deposits 2,584,835   47,829  3.73%  2,390,249   48,648  4.10%Total interest-bearing deposits 4,722,823   74,512  3.18%  4,544,014   82,483  3.66%Borrowings 42,210   830  3.96%  119,460   2,708  4.57%Subordinated debentures 130,619   3,072  4.70%  130,799   3,167  4.84%Total interest-bearing liabilities 4,895,652   78,414  3.23%  4,794,273   88,358  3.72%                Noninterest-bearing liabilities and equity:               Demand deposits: noninterest-bearing 1,950,506        1,915,577      Other liabilities 127,488        142,341      Stockholders’ equity 846,204        807,534                      Total liabilities and stockholders’ equity$7,819,850       $7,659,725                      Net interest income   $127,060       $112,231                   Cost of deposits      2.25%       2.58%Net interest spread (taxable equivalent basis)      2.22%       1.73%Net interest margin (taxable equivalent basis)      3.37%       3.05%                                (1)Includes average loans held for sale               (2)Yields calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.   

Non-GAAP Financial Measures

These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

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.

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)

 June 30,  March 31,  December 31,  September 30,  June 30, Hanmi Financial Corporation and Subsidiaries2026  2026  2025  2025  2025 Assets$8,001,473  $7,839,227  $7,869,185  $7,856,731  $7,862,363 Less goodwill and other intangible assets (11,031)  (11,031)  (11,031)  (11,031)  (11,031)Tangible assets$7,990,442  $7,828,196  $7,858,154  $7,845,700  $7,851,332                Stockholders’ equity(1)$812,680  $802,819  $796,386  $779,550  $762,834 Less goodwill and other intangible assets (11,031)  (11,031)  (11,031)  (11,031)  (11,031)Tangible stockholders’ equity(1)$801,649  $791,788  $785,355  $768,519  $751,803                Stockholders’ equity to assets 10.16%  10.24%  10.12%  9.92%  9.70%Tangible common equity to tangible assets(1) 10.03%  10.11%  9.99%  9.80%  9.58%               Common shares outstanding 29,650,306   29,806,694   29,894,757   29,975,371   30,176,568 Tangible common equity per common share$27.04  $26.56  $26.27  $25.64  $24.91                (1)There were no preferred shares outstanding at the periods indicated.    

Preprovision Net Revenues

Preprovision net revenues is supplemental financial information determined by a method other than in accordance with U.S. GAAP. This non-GAAP measure is used by management to measure Hanmi’s core operational performance, excluding the impact of provisions for loan losses. By isolating preprovision net revenues, management can better understand the Company’s true profitability and make more informed strategic decisions. Preprovision net revenues is calculated adding income tax expense and credit loss expense to net income. Management believes this financial measure highlights the Company’s revenue activities and operational efficiency, excluding unpredictable loan loss provisions.

The following table details the Company’s preprovision net revenues, which are non-GAAP measures, for the periods indicated:

Preprovision Net Revenues (Unaudited)

(In thousands, except percentages)

           Percentage Change Hanmi Financial Corporation andJun 30, Mar 31,  Dec 31, Sep 30,Jun 30, Q2-26  Q2-26 Subsidiaries2026 2026  2025 20252025 vs. Q1-26  vs. Q2-25 Net income$23,505 $22,557 $21,239$22,061 $15,117       Add back:               Credit loss expense 1,186  2,892  1,943 2,145  7,631       Income tax expense 8,475  7,925  8,887 9,396  6,115       Preprovision net revenue$33,166 $33,374 $32,069$33,602 $28,863   -0.6%  14.9%