Hanmi Financial (HAFC) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $22.6 million ($0.75 per diluted share), up 6.2% sequentially, driven by higher net interest income, improved margins, increased SBA loan sales, lower noninterest expenses, and advancing core initiatives.

• Return on average assets was 1.18% and return on average equity was 10.86%.

• Results supported by solid C&I loan originations, deposit growth, and disciplined expense management.

• Asset quality remained strong, with nonperforming assets down 38% to 0.16% of total assets.

• Loan portfolio diversification continued, with C&I loans at 17.6% of total loans and a 64% increase in C&I loan production.

Financial highlights

• Net interest income grew 0.5% sequentially to $63.2 million; net interest margin expanded by 10 bps to 3.38%.

• Noninterest income rose 2.9% to $8.5 million, mainly from higher SBA loan sale gains.

• Noninterest expense decreased 1.9% to $38.4 million, with an improved efficiency ratio of 53.48%.

• Deposits grew 7% annualized to $6.8 billion, with noninterest-bearing deposits stable at about 30% of total.

• Effective tax rate dropped to 26.0% from 29.5% in Q4 2025.

Outlook and guidance

• Management expects positive trends in loan and deposit growth, net interest margin, and capital strength to continue through 2026.

• Loan growth expected in the low to mid-single digit range for 2026, with continued portfolio diversification.

• Focus remains on deposit growth, especially noninterest-bearing, and disciplined expense management.

• Prudent credit management and conservative underwriting to preserve asset quality.

• SBA loan production guidance remains $45–$50 million per quarter.