Hanmi Financial (HAFC) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $22.6 million ($0.75 per diluted share), up 27.7% year-over-year and 6.2% sequentially, reflecting strong profitability growth and robust net interest income, margin expansion, and disciplined expense management.

• Return on average assets was 1.18% and return on average equity ranged from 10.86% to 11.4%.

• Results were supported by solid C&I loan originations, expansion of commercial banking relationships, and continued loan portfolio diversification.

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

• Relationship-based banking and disciplined expense management drove robust net income growth.

Financial highlights

• Net interest income rose to $63.2 million, up 14.7% year-over-year and 0.5% sequentially; net interest margin expanded by 10 bps to 3.38%.

• Noninterest income increased 10.5% year-over-year and 2.9% sequentially to $8.5 million, mainly from higher SBA loan sale gains.

• Noninterest expense decreased 1.9% sequentially to $38.4 million, with efficiency ratio improving to 53.48%.

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

• Allowance for credit losses was $70.5 million, or 1.08% of loans.

Outlook and guidance

• Management expects continued stable asset quality, strong capital ratios, prudent loan growth, and disciplined expense management through 2026.

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

• Interest rate risk simulations indicate resilience, with net interest income projected to rise up to 12.7% in a +300bp scenario.