Hanmi Financial (HAFC) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $23.5 million ($0.79 per diluted share), up 4.2% sequentially and 55.5% year-over-year, driven by higher net interest income, lower credit loss expense, and prudent expense management.

• Return on average assets was 1.20% and return on average equity was 11.09% for the quarter.

• Deposits grew 2.3% sequentially to $7.0 billion, with noninterest-bearing deposits rising 5.2% and now 31% of total deposits.

• Maintained disciplined expense management and returned 58% of earnings to shareholders via dividends and share repurchases.

• Demonstrated resilience and consistent execution in a dynamic environment, with improved profitability metrics and excellent credit quality.

Financial highlights

• Net interest income increased 1.0% to $63.9 million from Q1 2026; net interest margin declined two basis points to 3.36%.

• Noninterest income was $8.3 million, down 2.2% sequentially, mainly due to lower gains on SBA and residential mortgage loan sales.

• Noninterest expense rose 1.7% to $39.0 million, primarily from higher salaries and OREO expense.

• Efficiency ratio was 54.07%, reflecting strong operating discipline.

• Tangible common equity per share increased 1.8% to $27.04; tangible common equity ratio at 10.03%.

Outlook and guidance

• Expect low to mid-single digit loan growth for 2026, with C&I and CRE segments as primary drivers.

• Net interest margin anticipated to remain stable through year-end, assuming no Fed policy changes.

• SBA loan production expected to return to historical run rate of $45 million per quarter in the second half.

• Management remains optimistic for continued earnings growth in the second half of 2026, citing robust loan and deposit pipelines and strong business momentum.

• Continued focus on profitable loan growth, core deposit expansion, disciplined expense management, and strong credit culture.