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Hanmi Reports 2024 Fourth Quarter and Full Year Results

1. Hanmi's Q4 2024 net income rose 18.8% to $17.7 million. 2. 2024 total deposits grew by 2.5% year-over-year to $6.44 billion. 3. Net interest margin increased to 2.91%, indicating stronger profitability. 4. Nonperforming loans decreased to 0.23%, reflecting improved asset quality. 5. C&I loan portfolio experienced 16% growth, indicating strategic expansion.

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Strong earnings, improved margins, and asset quality suggest positive momentum, akin to past quarterly spikes.

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The article provides significant insights into financial health, influencing investor sentiment positively.

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Immediate investor reaction likely due to quarterly results; however, sustained growth needs follow-up.

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LOS ANGELES, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the fourth quarter of 2024 and full year. Net income for the fourth quarter of 2024 was $17.7 million, or $0.58 per diluted share, compared with $14.9 million, or $0.49 per diluted share, for the third quarter of 2024. The return on average assets for the fourth quarter of 2024 was 0.93% and the return on average equity was 8.89%, compared with a return on average assets of 0.79% and a return on average equity of 7.55% for the third quarter of 2024. For the full year of 2024, net income was $62.2 million, or $2.05 per diluted share, compared with $80.0 million, or $2.62 per diluted share, for 2023. The return on average assets for 2024 was 0.83% and the return on average equity was 7.97%. CEO Commentary“Hanmi achieved exceptional results in the fourth quarter, delivering our best quarterly performance of the year and closing 2024 with strong momentum,” said Bonnie Lee, President and Chief Executive Officer. “Our team’s outstanding execution generated significant earnings growth fueled by our net interest margin expansion of 17 basis points to 2.91%, disciplined expense management, and vigilant credit administration. These robust results highlight the strength of our relationship-driven banking model.” “For the full year, we had a number of key accomplishments to advance our growth and diversification strategy. We delivered 16% growth in our C&I loan portfolio, driven primarily by the strong contribution from our Corporate Korea initiative. Noninterest-bearing demand deposits grew by 5% and now represent 33% of our total deposits. Finally, through our proactive monitoring of the portfolio and our successful resolution efforts, we further improved asset quality with nonperforming assets as a percentage of total assets decreasing to 0.19%.” “With our strong capital foundation, we are well positioned to execute on our growth strategy. Our performance is the result of our team’s unwavering dedication to serving our customers and the communities in which we operate. I want to thank each of them for their continued commitment to deliver long-term value for our shareholders,” concluded Lee. Fourth Quarter 2024 Highlights: Fourth quarter net income was $17.7 million, or $0.58 per diluted share, up 18.8% from $14.9 million, or $0.49 per diluted share for the third quarter of 2024. The increase reflects a $3.4 million, or 6.8%, increase in net interest income, primarily due to a decrease in interest expense on deposits.Loans receivable were $6.25 billion at December 31, 2024, essentially unchanged from the end of the third quarter of 2024; loan production for the fourth quarter was $339.0 million, with a weighted average interest rate of 7.37%, compared with loan production for the third quarter of $347.8 million, with a weighted average interest rate of 7.92%.Deposits were $6.44 billion at December 31, 2024, up 0.5% from the end of the third quarter of 2024; noninterest-bearing demand deposits were 32.6% of total deposits. During the quarter, noninterest-bearing demand deposits grew 2.2%, while time deposits declined 2.0% from the prior quarter.Net interest income for the fourth quarter was $53.4 million, up 6.8% from the third quarter of 2024. Net interest margin (taxable equivalent) increased 17 basis points to 2.91%; the average yield on loans declined three basis points to 5.97%, while the cost of interest-bearing deposits fell 31 basis points to 3.96%. Credit loss expense for the fourth quarter was $0.9 million, a decrease from $2.3 million for the prior quarter. The allowance for credit losses increased $1.0 million to $70.1 million at December 31, 2024, or 1.12% of loans. For the fourth quarter, net loan recoveries were $0.1 million.Asset quality remained strong, as nonperforming loans declined by 7.9% to $14.3 million, or 0.23% of loans, which included pay-offs of $1.8 million, while criticized loans increased to $165.3 million, as special mention loans increased to $139.6 million and classified loans fell to $25.7 million. For more information about Hanmi, please see the Q4 2024 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. 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  December 31, September 30, June 30,  March 31,  December 31, Q4-24  Q4-24  2024  2024  2024  2024  2023  vs. Q3-24  vs. Q4-23                      Net income$17,695  $14,892  $14,451  $15,164  $18,633  $2,803  $(938)Net income per diluted common share$0.58  $0.49  $0.48  $0.50  $0.61  $0.09  $(0.03)                     Assets$7,677,925  $7,712,299  $7,586,347  $7,512,046  $7,570,341  $(34,374) $107,584 Loans receivable$6,251,377  $6,257,744  $6,176,359  $6,177,840  $6,182,434  $(6,367) $68,943 Deposits$6,435,776  $6,403,221  $6,329,340  $6,376,060  $6,280,574  $32,555  $155,202                      Return on average assets 0.93%  0.79%  0.77%  0.81%  0.99%  0.14   -0.06 Return on average stockholders' equity 8.89%  7.55%  7.50%  7.90%  9.70%  1.34   -0.81                      Net interest margin 2.91%  2.74%  2.69%  2.78%  2.92%  0.17   -0.01 Efficiency ratio (1) 56.79%  59.98%  62.24%  62.42%  58.86%  -3.19   -2.07                      Tangible common equity to tangible assets (2) 9.41%  9.42%  9.19%  9.23%  9.14%  -0.01   0.27 Tangible common equity per common share (2)$23.88  $24.03  $22.99  $22.86  $22.75   -0.15   1.14                                           (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 for the fourth quarter was $53.4 million, up 6.8% from $50.1 million for the third quarter of 2024. The increase was primarily due to a decrease in deposit interest expense. The decrease in deposit interest expense was primarily a result of decreases in deposit rates and the average balances of interest-bearing deposits, coupled with a 3.1% increase in the average balance of noninterest-bearing demand deposits. The rate on deposits for the fourth quarter decreased 31 basis points to 3.96%, from 4.27% for the third quarter of 2024. The average balance of interest-bearing deposits decreased to $4.36 billion for the fourth quarter of 2024, from $4.40 billion for the third quarter. The average balance of noninterest-bearing deposits for the fourth quarter increased to $1.97 billion, from $1.91 billion for the third quarter of 2024. Net interest margin (taxable equivalent) for the fourth quarter was 2.91%, up 17 basis points from 2.74% for the third quarter of 2024. Net interest income was $202.8 million for the full year of 2024 compared with $221.3 million for 2023, a decline of 8.4%. The decrease reflected higher interest rates during 2024 compared with 2023, including an increase in the cost of interest-bearing deposits, partially offset by an increase in interest-earning asset yields. The cost of interest-bearing deposits for 2024 year increased 81 basis points to 4.16% from 3.35% for 2023. The yield on average interest-earning assets for 2024 increased 31 basis points to 5.46% from 5.15% for 2023. The average balance of interest-bearing deposits for 2024 increased to $4.39 billion from $4.02 billion for 2023. The average balance of interest-earning assets for 2024 year increased 1.7% to $7.30 billion from $7.18 billion for 2023. The average balance of loans for 2024 year was $6.11 billion, up 2.4% from $5.97 billion for 2023. Net interest margin (taxable-equivalent) for 2024 year was 2.78% compared with 3.08% for 2023. The 30 basis point decrease in the net interest margin reflected the increase in the cost of interest-bearing deposits, partially offset by the increase in average loan yields.  For the Three Months Ended (in thousands)  Percentage Change  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  Q4-24  Q4-24 Net Interest Income2024  2024  2024  2024  2023  vs. Q3-24  vs. Q4-23                      Interest and fees on loans receivable(1)$91,545  $92,182  $90,752  $91,674  $89,922   -0.7%  1.8%Interest on securities 5,866   5,523   5,238   4,955   4,583   6.2%  28.0%Dividends on FHLB stock 360   356   357   361   341   1.1%  5.6%Interest on deposits in other banks 2,342   2,356   2,313   2,604   2,337   -0.6%  0.2%Total interest and dividend income$100,113  $100,417  $98,660  $99,594  $97,183   -0.3%  3.0%                     Interest on deposits 43,406   47,153   46,495   45,638   40,277   -7.9%  7.8%Interest on borrowings 1,634   1,561   1,896   1,655   2,112   4.7%  -22.6%Interest on subordinated debentures 1,624   1,652   1,649   1,646   1,654   -1.7%  -1.8%Total interest expense 46,664   50,366   50,040   48,939   44,043   -7.4%  6.0%Net interest income$53,449  $50,051  $48,620  $50,655  $53,140   6.8%  0.6%                     (1)       Includes loans held for sale.                      For the Three Months Ended (in thousands)  Percentage Change Average Earning Assets and Interest-bearing Liabilities Dec 31,2024   Sep 30,2024   Jun 30,2024   Mar 31,2024   Dec 31,2023   Q4-24vs. Q3-24   Q4-24vs. Q4-23 Loans receivable (1)$6,103,264  $6,112,324  $6,089,440  $6,137,888  $6,071,644   -0.1%  0.5%Securities 998,313   986,041   979,671   969,520   961,551   1.2%  3.8%FHLB stock 16,385   16,385   16,385   16,385   16,385   0.0%  0.0%Interest-bearing deposits in other banks 204,408   183,027   180,177   201,724   181,140   11.7%  12.8%Average interest-earning assets$7,322,370  $7,297,777  $7,265,673  $7,325,517  $7,230,720   0.3%  1.3%                     Demand: interest-bearing$79,784  $83,647  $85,443  $86,401  $86,679   -4.6%  -8.0%Money market and savings 1,934,540   1,885,799   1,845,870   1,815,085   1,669,973   2.6%  15.8%Time deposits 2,346,363   2,427,737   2,453,154   2,507,830   2,417,803   -3.4%  -3.0%Average interest-bearing deposits 4,360,687   4,397,183   4,384,467   4,409,316   4,174,455   -0.8%  4.5%Borrowings 141,604   143,479   169,525   162,418   205,951   -1.3%  -31.2%Subordinated debentures 130,567   130,403   130,239   130,088   129,933   0.1%  0.5%Average interest-bearing liabilities$4,632,858  $4,671,065  $4,684,231  $4,701,822  $4,510,339   -0.8%  2.7%                     Average Noninterest Bearing Deposits                    Demand deposits - noninterest bearing$1,967,789  $1,908,833  $1,883,765  $1,921,189  $2,025,212   3.1%  -2.8%                     (1)       Includes loans held for sale.                      For the Three Months Ended  Yield/Rate Change  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  Q4-24  Q4-24 Average Yields and Rates2024  2024  2024  2024  2023  vs. Q3-24  vs. Q4-23 Loans receivable(1) 5.97%  6.00%  5.99%  6.00%  5.88%  -0.03   0.09 Securities (2) 2.38%  2.27%  2.17%  2.07%  1.93%  0.11   0.45 FHLB stock 8.75%  8.65%  8.77%  8.87%  8.25%  0.10   0.50 Interest-bearing deposits in other banks 4.56%  5.12%  5.16%  5.19%  5.12%  -0.56   -0.56 Interest-earning assets 5.45%  5.48%  5.46%  5.47%  5.34%  -0.03   0.11                      Interest-bearing deposits 3.96%  4.27%  4.27%  4.16%  3.83%  -0.31   0.13 Borrowings 4.59%  4.33%  4.50%  4.10%  4.07%  0.26   0.52 Subordinated debentures 4.97%  5.07%  5.07%  5.06%  5.09%  -0.10   -0.12 Interest-bearing liabilities 4.01%  4.29%  4.30%  4.19%  3.88%  -0.28   0.13                      Net interest margin (taxable equivalent basis) 2.91%  2.74%  2.69%  2.78%  2.92%  0.17   -0.01                      Cost of deposits 2.73%  2.97%  2.98%  2.90%  2.58%  -0.24   0.15                      (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 fourth quarter was $0.9 million, compared with $2.3 million for the third quarter of 2024. Fourth quarter credit loss expense included a $0.9 million credit loss expense for loan losses. Fourth quarter net loan recoveries were $0.1 million, compared to third quarter net loan charge-offs of $0.9 million. Credit loss expense was $4.4 million for 2024, compared with $4.3 million for 2023. The credit loss expense for 2024 was comprised of a $4.8 million credit loss expense for loan losses and a $0.4 million credit loss expense recovery for off-balance sheet items. 2023 credit loss expense was comprised of a $4.9 million credit loss expense for loan losses and a $0.6 million credit loss expense recovery for off-balance sheet items. Noninterest income for the fourth quarter decreased $1.0 million, or 12.8%, to $7.4 million, from $8.4 million for the third quarter of 2024. The decrease was primarily due to a $0.9 million gain from the sale and leaseback of a branch property included in third quarter noninterest income. Gains on sales of SBA loans were $1.4 million for the fourth quarter of 2024, compared with $1.5 million for the third quarter of 2024. The volume of SBA loans sold for the fourth quarter decreased to $21.6 million, from $23.0 million for the third quarter of 2024, while trade premiums were 8.53% for the fourth quarter of 2024, slightly lower than 8.54% for the third quarter. Mortgage loans sold for the fourth quarter were $18.3 million, with a premium of 1.96%, compared with $20.9 million and 2.32% for the third quarter. Gains on mortgage loans sold were $0.3 million for both quarters. Noninterest income decreased $2.6 million, or 7.6%, to $31.6 million for 2024, from $34.2 million for 2023, primarily due to a $4.0 million gain on the sale-and-leaseback of a branch property in 2023 and a $0.8 million decrease in service charges on deposits. Those items were partially offset by a $1.5 million gain on the sale of mortgage loans and a $0.9 million gain from the sale and leaseback of a branch property in 2024. The volume of SBA loans sold in 2024 declined to $93.7 million, from $100.5 million for 2023, while trade premiums increased to 8.18% for 2024, from 7.12% for 2023.  For the Three Months Ended (in thousands)  Percentage Change  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  Q4-24  Q4-24 Noninterest Income2024  2024  2024  2024  2023  vs. Q3-24  vs. Q4-23 Service charges on deposit accounts$2,192  $2,311  $2,429  $2,450  $2,391   -5.1%  -8.3%Trade finance and other service charges and fees 1,364   1,254   1,277   1,414   1,245   8.8%  9.6%Servicing income 668   817   796   712   772   -18.2%  -13.5%Bank-owned life insurance income (expense) 316   320   638   304   (29)  -1.3% N/M All other operating income 1,037   1,008   908   928   853   2.9%  21.6%Service charges, fees & other 5,577   5,710   6,048   5,808   5,232   -2.3%  6.6%                     Gain on sale of SBA loans 1,443   1,544   1,644   1,482   1,448   -6.5%  -0.3%Gain on sale of mortgage loans 337   324   365   443   -   4.0%  0.0%Gain on sale of bank premises -   860   -   -   -   -100.0%  0.0%Total noninterest income$7,357  $8,438  $8,057  $7,733  $6,680   -12.8%  10.1%                     N/M - Not meaningful.                     Noninterest expense for the fourth quarter decreased by $0.6 million to $34.5 million from $35.1 million for the third quarter of 2024. The decrease primarily reflects a $1.6 million gain on the sale of an other real estate owned property. Absent this gain, fourth quarter noninterest expense was up 3.1% sequentially, due to increases in advertising and promotion expense and legal fees from collections and business activities. In addition, other operating expense for the fourth quarter included a $0.5 million charge related to an SBA loan acquired in a previous acquisition, while the third quarter included a $0.3 million reimbursement for property taxes. The efficiency ratio for the fourth quarter was 56.8%, compared with 60.0% for the third quarter of 2024. Noninterest expense increased by $4.8 million, or 3.5%, to $141.3 million for 2024, from $136.5 million for 2023. The increase reflected a $2.0 million, or 2.4%, increase in salaries and benefits, a $1.2 million increase in data processing expense, a $0.7 million increase in professional fees, and a $1.4 million increase in other operating expenses. Decreases of $0.2 million in occupancy and equipment expense and $0.2 million in supplies and communication expense partially offset the increases. The efficiency ratio for 2024 increased to 60.3%, from 53.5% for 2023, primarily due to higher expenses and lower revenue.  For the Three Months Ended (in thousands)  Percentage Change  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  Q4-24  Q4-24  2024  2024  2024  2024  2023  vs. Q3-24  vs. Q4-23 Noninterest Expense                    Salaries and employee benefits$20,498  $20,851  $20,434  $21,585  $20,062  -1.7% 2.2%Occupancy and equipment 4,503   4,499   4,348   4,537   4,604  0.1% -2.2%Data processing 3,800   3,839   3,686   3,551   3,487  -1.0% 9.0%Professional fees 1,821   1,492   1,749   1,893   1,977  22.1% -7.9%Supplies and communication 551   538   570   601   613  2.4% -10.1%Advertising and promotion 821   631   669   907   990  30.1% -17.1%All other operating expenses 3,847   2,875   3,251   3,160   3,252  33.8% 18.3%Subtotal 35,841   34,725   34,707   36,234   34,985  3.2% 2.4%                     Branch consolidation expense -   -   301   -   -  0.0% 0.0%Other real estate owned (income) expense (1,588)  77   6   22   15  N/M  N/M Repossessed personal property expense 281   278   262   189   211  1.1% 33.2%Total noninterest expense$34,534  $35,080  $35,276  $36,445  $35,211  -1.6% -1.9%                     N/M - Not meaningful.                     Hanmi recorded a provision for income taxes of $7.6 million for the fourth quarter of 2024, compared with $6.2 million for the third quarter of 2024, representing an effective tax rate of 30.1% and 29.5%, respectively. The effective tax rates for 2024 and 2023 years were 29.8% and 30.1%, respectively. Financial PositionTotal assets at December 31, 2024, decreased 0.4%, or $33.7 million, to $7.68 billion from $7.71 billion at September 30, 2024. The decrease reflected a $45.8 million decrease in loans held-for-sale and a $6.4 million decrease in loans, offset partially by a $17.0 million increase in cash and due from banks. From December 31, 2023, total assets increased 1.4%, or $108.2 million. This year-over-year increase reflected a 1.1%, or $68.9 million, growth in loans receivable, and a 4.6%, or $40.1 million increase in securities, supported by a 2.5%, or $155.2 million increase in deposits. Loans receivable, before allowance for credit losses, were $6.25 billion at December 31, 2024, down from $6.26 billion at September 30, 2024. Loans held-for-sale were $8.6 million at December 31, 2024, down from $54.3 million at September 30, 2024. At the end of the fourth quarter, loans held-for-sale consisted of the guaranteed portion of SBA 7(a) loans. The prior quarter included $18.3 million of residential mortgage loans and a $27.2 million nonaccrual loan, all of which were sold in the fourth quarter.  As of (in thousands)  Percentage Change  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  Q4-24  Q4-24  2024  2024  2024  2024  2023  vs. Q3-24  vs. Q4-23 Loan Portfolio                    Commercial real estate loans$3,949,622  $3,932,088  $3,888,505  $3,878,677  $3,889,739   0.4% 1.5%Residential/consumer loans 951,302   939,285   954,209   970,362   962,661   1.3% -1.2%Commercial and industrial loans 863,431   879,092   802,372   774,851   747,819   -1.8% 15.5%Equipment finance 487,022   507,279   531,273   553,950   582,215   -4.0% -16.4%Loans receivable 6,251,377   6,257,744   6,176,359   6,177,840   6,182,434   -0.1% 1.1%Loans held for sale 8,579   54,336   10,467   3,999   12,013   -84.2% -28.6%Total$6,259,956  $6,312,080  $6,186,826  $6,181,839  $6,194,447   -0.8% 1.1%  As of  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  2024  2024  2024  2024  2023 Composition of Loan Portfolio              Commercial real estate loans63.1% 62.3% 62.9% 62.7% 62.8%Residential/consumer loans15.2% 14.9% 15.4% 15.7% 15.5%Commercial and industrial loans13.8% 13.9% 13.0% 12.5% 12.1%Equipment finance7.8% 8.0% 8.5% 9.0% 9.4%Loans receivable99.9% 99.1% 99.8% 99.9% 99.8%Loans held for sale0.1% 0.9% 0.2% 0.1% 0.2%Total100.0% 100.0% 100.0% 100.0% 100.0% New loan production was $339.0 million for the fourth quarter of 2024 at an average rate of 7.37%, while payoffs were $137.9 million during the quarter at an average rate of 6.78%. Commercial real estate loan production for the fourth quarter of 2024 was $146.7 million. Commercial and industrial loan production was $60.2 million, SBA loan production was $49.7 million, equipment finance production was $42.2 million, and residential mortgage loan production was $40.2 million. New loan production for 2024 was $1.20 billion, a decrease of 7.4%, or $96.0 million, from $1.29 billion for the full year 2023. The average rate for new loan production for 2024 was 7.87% compared with 7.66% for 2023. Payoffs for 2024 were $450.2 million with an average rate of 7.34% compared with $386.0 million and 7.13% for 2023.  For the Three Months Ended (in thousands)  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  2024  2024  2024  2024  2023 New Loan Production              Commercial real estate loans$146,716  $110,246  $87,632  $60,085  $178,157 Commercial and industrial loans 60,159   105,086   59,007   50,789   52,079 SBA loans 49,740   51,616   54,486   30,817   48,432 Equipment finance 42,168   40,066   42,594   39,155   57,334 Residential/consumer loans 40,225   40,758   30,194   53,115   53,465          subtotal 339,008   347,772   273,913   233,961   389,467                               Payoffs (137,932)  (77,603)  (148,400)  (86,250)  (77,961)Amortization (60,583)  (151,674)  (83,640)  (90,711)  (106,610)Loan sales (67,852)  (43,868)  (42,945)  (55,321)  (29,861)Net line utilization (75,651)  9,426   1,929   (4,150)  (11,609)Charge-offs & OREO (3,356)  (2,668)  (2,338)  (2,123)  (1,777)               Loans receivable-beginning balance 6,257,744   6,176,359   6,177,840   6,182,434   6,020,785 Loans receivable-ending balance$6,251,377  $6,257,744  $6,176,359  $6,177,840  $6,182,434  Deposits were $6.44 billion at the end of the fourth quarter of 2024, up $32.6 million, or 0.5%, from $6.40 billion at the end of the prior quarter. Driving the change was a $44.8 million increase in noninterest-bearing demand deposits and a $34.7 million increase in money market and savings deposits, partially offset by a $48.0 million decrease in time deposits. Noninterest-bearing demand deposits represented 32.6% of total deposits at December 31, 2024, and the loan-to-deposit ratio was 97.1%.  As of (in thousands)  Percentage Change  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  Q4-24  Q4-24  2024  2024  2024  2024  2023  vs. Q3-24  vs. Q4-23 Deposit Portfolio                    Demand: noninterest-bearing$2,096,634  $2,051,790  $1,959,963  $1,933,060  $2,003,596  2.2% 4.6%Demand: interest-bearing 80,323   79,287   82,981   87,374   87,452  1.3% -8.2%Money market and savings 1,933,535   1,898,834   1,834,797   1,859,865   1,734,658  1.8% 11.5%Time deposits 2,325,284   2,373,310   2,451,599   2,495,761   2,454,868  -2.0% -5.3%Total deposits$6,435,776  $6,403,221  $6,329,340  $6,376,060  $6,280,574  0.5% 2.5%  As of  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  2024  2024  2024  2024  2023 Composition of Deposit Portfolio              Demand: noninterest-bearing32.6% 32.0% 31.0% 30.3% 31.9%Demand: interest-bearing1.2% 1.2% 1.3% 1.4% 1.4%Money market and savings30.0% 29.7% 29.0% 29.2% 27.6%Time deposits36.2% 37.1% 38.7% 39.1% 39.1%Total deposits100.0% 100.0% 100.0% 100.0% 100.0% Stockholders’ equity at December 31, 2024, was $732.2 million, down $4.5 million from $736.7 million at September 30, 2024. The decrease was due to a $14.6 million increase in unrealized after-tax losses on securities available for sale and a $1.0 million increase in unrealized after-tax losses on cash flow hedges, all due to changes in interest rates during the fourth quarter of 2024. Hanmi also repurchased 24,500 shares of common stock, at a cost of $0.6 million, during the quarter at an average share price of $22.91. At December 31, 2024, 1,230,500 shares remain under Hanmi’s share repurchase program. Partially offsetting these decreases was $10.2 million of net income, net of dividends paid, for the fourth quarter. Tangible common stockholders’ equity was $721.1 million, or 9.41% of tangible assets, at December 31, 2024, compared with $725.7 million, or 9.42% of tangible assets at the end of the prior 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 continues to exceed the minimum for the “well capitalized” category. At December 31, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was 12.11% and its total risk-based capital ratio was 15.24%, compared with 11.95% and 15.03%, respectively, at the end of the prior quarter.  As of  Ratio Change  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  Q4-24  Q4-24  2024  2024  2024  2024  2023  vs. Q3-24  vs. Q4-23 Regulatory Capital ratios (1)                    Hanmi Financial                    Total risk-based capital15.24% 15.03% 15.24% 15.20% 14.95% 0.21  0.29 Tier 1 risk-based capital12.46% 12.29% 12.46% 12.40% 12.20% 0.17  0.26 Common equity tier 1 capital12.11% 11.95% 12.11% 12.05% 11.86% 0.16  0.25 Tier 1 leverage capital ratio10.63% 10.56% 10.51% 10.36% 10.37% 0.07  0.26 Hanmi Bank                    Total risk-based capital14.43% 14.27% 14.51% 14.50% 14.27% 0.16  0.16 Tier 1 risk-based capital13.36% 13.23% 13.47% 13.44% 13.26% 0.13  0.10 Common equity tier 1 capital13.36% 13.23% 13.47% 13.44% 13.26% 0.13  0.10 Tier 1 leverage capital ratio11.46% 11.43% 11.41% 11.29% 11.32% 0.03  0.14                      (1)       Preliminary ratios for December 31, 2024                     Asset Quality Loans 30 to 89 days past due and still accruing were 0.30% of loans at the end of the fourth quarter of 2024, compared with 0.24% at the end of the prior quarter. Criticized loans totaled $165.3 million at December 31, 2024, up from $160.0 million at the end of the third quarter of 2024. The $5.3 million increase resulted from an $8.0 million increase in special mention loans and a $2.7 million decrease in classified loans. The $8.0 million increase in special mention loans included additions of $13.4 million, offset by loan reductions and pay-downs of $3.8 million, upgrades of $1.3 million and downgrades of $0.3 million. The $2.7 million decrease in classified loans resulted from $2.9 million of charge-offs, $2.4 million of payoffs, $1.4 million of upgrades and $1.6 million of amortization and paydowns, offset by loan downgrades of $2.7 million and lease downgrades of $2.9 million. Nonperforming loans were $14.3 million at December 31, 2024, down from $15.5 million at the end of the prior quarter. The decrease primarily reflects pay-offs of $1.8 million, $1.0 million in loan upgrades, $0.8 million in paydowns, and charge-offs of $2.9 million. Offsetting the decrease were additions of $5.5 million. Nonperforming assets were $14.4 million at the end of the fourth quarter of 2024, down from $16.3 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.19% at December 31, 2024, and 0.21% at the end of the prior quarter. Gross charge-offs for the fourth quarter of 2024 were $3.4 million, compared with $3.8 million for the preceding quarter. Charge-offs included $2.9 million on equipment financing agreements. Recoveries of previously charged-off loans were $3.5 million in the fourth quarter of 2024. As a result, there were $0.1 million of net recoveries for the fourth quarter of 2024, compared to net charge-offs of $0.9 million for the prior quarter. For 2024, net charge-offs were 0.07% of average loans, compared with 0.12% for 2023. The allowance for credit losses was $70.1 million at December 31, 2024, compared with $69.2 million at September 30, 2024. Specific allowances for loans increased $1.0 million, while the allowance for quantitative and qualitative considerations remained relatively unchanged. The ratio of the allowance for credit losses to loans was 1.12% at December 31, 2024 and 1.11% at September 30, 2024.  As of or for the Three Months Ended (in thousands)  Amount Change  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  Q4-24  Q4-24  2024  2024  2024  2024  2023  vs. Q3-24  vs. Q4-23 Asset Quality Data and Ratios                                         Delinquent loans:                    Loans, 30 to 89 days past due and still accruing$18,454  $15,027  $13,844  $15,839  $10,263  $3,427  $8,191 Delinquent loans to total loans 0.30%  0.24%  0.22%  0.26%  0.17%  0.06   0.13                      Criticized loans:                    Special mention$139,612  $131,575  $36,921  $62,317  $65,314  $8,037  $74,298 Classified 25,683   28,377   33,945   23,670   31,367   (2,694)  (5,684)Total criticized loans$165,295  $159,952  $70,866  $85,987  $96,681  $5,343  $68,614                      Nonperforming assets:                    Nonaccrual loans$14,274  $15,248  $19,245  $14,025  $15,474  $(974) $(1,200)Loans 90 days or more past due and still accruing -   242   -   -   -   (242)  - Nonperforming loans* 14,274   15,490   19,245   14,025   15,474   (1,216)  (1,200)Other real estate owned, net 117   772   772   117   117   (655)  - Nonperforming assets**$14,391  $16,262  $20,017  $14,142  $15,591  $(1,871) $(1,200)                     Nonperforming assets to assets* 0.19%  0.21%  0.26%  0.19%  0.21%  -0.02   -0.02 Nonperforming loans to total loans 0.23%  0.25%  0.31%  0.23%  0.25%  -0.02   -0.02                      * Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.    ** Excludes repossessed personal property of $0.6 million, $1.2 million, $1.2 million, $1.3 million, and $1.3 million as of Q4-24, Q3-24, Q2-24, Q1-24, and Q4-23, respectively   As of or for the Three Months Ended (in thousands)  Dec 31,  Sep 30,  Jun 30,  Mar 31,  Dec 31,  2024  2024  2024  2024  2023 Allowance for credit losses related to loans:              Balance at beginning of period$69,163  $67,729  $68,270  $69,462  $67,313 Credit loss expense (recovery) on loans 855   2,312   1,248   404   (2,880)Net loan (charge-offs) recoveries 129   (878)  (1,789)  (1,596)  5,029 Balance at end of period$70,147  $69,163  $67,729  $68,270  $69,462                Net loan charge-offs (recoveries) to average loans (1) -0.01%  0.06%  0.12%  0.10%  -0.33%Allowance for credit losses to loans 1.12%  1.11%  1.10%  1.11%  1.12%               Allowance for credit losses related to off-balance sheet items:              Balance at beginning of period$1,984  $2,010  $2,297  $2,474  $2,463 Credit loss expense (recovery) on off-balance sheet items 90   (26)  (287)  (177)  11 Balance at end of period$2,074  $1,984  $2,010  $2,297  $2,474                Unused commitments to extend credit$782,587  $739,975  $795,391  $792,769  $813,960                (1)       Annualized               Corporate DevelopmentsOn October 24, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 fourth quarter of $0.25 per share. Hanmi paid the dividend on November 20, 2024, to stockholders of record as of the close of business on November 4, 2024. Earnings Conference CallHanmi Bank will host its fourth quarter 2024 earnings conference call today, January 28, 2025, 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 31 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 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;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;the imposition of tariffs or other domestic or international governmental polices impacting the value of the products of our borrowers;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;the adequacy of and changes in the 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; andcyber 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, 2023, 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) SantarosaSenior Executive Vice President & Chief Financial Officer213-427-5636 Lisa FortunaInvestor RelationsFinancial Profiles, Inc.lfortuna@finprofiles.com 310-622-8251 Hanmi Financial Corporation and SubsidiariesConsolidated Balance Sheets (Unaudited)(Dollars in thousands)  December 31,  September 30,  Percentage  December 31,  Percentage  2024  2024  Change  2023  Change Assets              Cash and due from banks$304,800  $287,767  5.9% $302,324  0.8%Securities available for sale, at fair value 905,798   908,921  -0.3%  865,739  4.6%Loans held for sale, at the lower of cost or fair value 8,579   54,336  -84.2%  12,013  -28.6%Loans receivable, net of allowance for credit losses 6,181,230   6,188,581  -0.1%  6,112,972  1.1%Accrued interest receivable 22,937   21,955  4.5%  23,371  -1.9%Premises and equipment, net 21,404   21,371  0.2%  21,959  -2.5%Customers' liability on acceptances 1,226   67  N/M   625  96.2%Servicing assets 6,457   6,683  -3.4%  7,070  -8.7%Goodwill and other intangible assets, net 11,031   11,031  0.0%  11,099  -0.6%Federal Home Loan Bank ("FHLB") stock, at cost 16,385   16,385  0.0%  16,385  0.0%Bank-owned life insurance 57,168   56,851  0.6%  56,335  1.5%Prepaid expenses and other assets 140,910   138,351  1.8%  140,449  0.3%Total assets$7,677,925  $7,712,299  -0.4% $7,570,341  1.4%               Liabilities and Stockholders' Equity              Liabilities:              Deposits:              Noninterest-bearing$2,096,634  $2,051,790  2.2% $2,003,596  4.6%Interest-bearing 4,339,142   4,351,431  -0.3%  4,276,978  1.5%Total deposits 6,435,776   6,403,221  0.5%  6,280,574  2.5%Accrued interest payable 34,824   52,613  -33.8%  39,306  -11.4%Bank's liability on acceptances 1,226   67  N/M   625  96.2%Borrowings 262,500   300,000  -12.5%  325,000  -19.2%Subordinated debentures 130,638   130,478  0.1%  130,012  0.5%Accrued expenses and other liabilities 80,787   89,211  -9.4%  92,933  -13.1%Total liabilities 6,945,751   6,975,590  -0.4%  6,868,450  1.1%               Stockholders' equity:              Common stock 34   34  0.0%  34  0.0%Additional paid-in capital 591,069   589,567  0.3%  586,912  0.7%Accumulated other comprehensive income (70,723)  (55,140) -28.3%  (71,928) 1.7%Retained earnings 350,869   340,718  3.0%  319,048  10.0%Less treasury stock (139,075)  (138,470) -0.4%  (132,175) -5.2%Total stockholders' equity 732,174   736,709  -0.6%  701,891  4.3%Total liabilities and stockholders' equity$7,677,925  $7,712,299  -0.4% $7,570,341  1.4%               N/M - Not meaningful.               Hanmi Financial Corporation and Subsidiaries Consolidated Statements of Income (Unaudited)(Dollars in thousands, except share and per share data)  Three Months Ended  December 31,  September 30,  Percentage  December 31,  Percentage  2024  2024  Change  2023  Change Interest and dividend income:              Interest and fees on loans receivable$91,545  $92,182  -0.7% $89,922  1.8%Interest on securities 5,866   5,523  6.2%  4,583  28.0%Dividends on FHLB stock 360   356  1.1%  341  5.6%Interest on deposits in other banks 2,342   2,356  -0.6%  2,337  0.2%Total interest and dividend income 100,113   100,417  -0.3%  97,183  3.0%Interest expense:              Interest on deposits 43,406   47,153  -7.9%  40,277  7.8%Interest on borrowings 1,634   1,561  4.7%  2,112  -22.6%Interest on subordinated debentures 1,624   1,652  -1.7%  1,654  -1.8%Total interest expense 46,664   50,366  -7.4%  44,043  6.0%Net interest income before credit loss expense 53,449   50,051  6.8%  53,140  0.6%Credit loss expense 945   2,286  -58.7%  (2,870) 132.9%Net interest income after credit loss expense 52,504   47,765  9.9%  56,010  -6.3%Noninterest income:              Service charges on deposit accounts 2,192   2,311  -5.1%  2,391  -8.3%Trade finance and other service charges and fees 1,364   1,254  8.8%  1,245  9.6%Gain on sale of Small Business Administration ("SBA") loans 1,443   1,544  -6.5%  1,448  -0.3%Other operating income 2,358   3,329  -29.2%  1,596  47.7%Total noninterest income 7,357   8,438  -12.8%  6,680  10.1%Noninterest expense:              Salaries and employee benefits 20,498   20,851  -1.7%  20,062  2.2%Occupancy and equipment 4,503   4,499  0.1%  4,604  -2.2%Data processing 3,800   3,839  -1.0%  3,487  9.0%Professional fees 1,821   1,492  22.1%  1,977  -7.9%Supplies and communications 551   538  2.4%  613  -10.1%Advertising and promotion 821   631  30.1%  990  -17.1%Other operating expenses 2,540   3,230  -21.4%  3,478  -27.0%Total noninterest expense 34,534   35,080  -1.6%  35,211  -1.9%Income before tax 25,327   21,123  19.9%  27,479  -7.8%Income tax expense 7,632   6,231  22.5%  8,846  -13.7%Net income$17,695  $14,892  18.8% $18,633  -5.0%               Basic earnings per share:$0.59  $0.49     $0.61    Diluted earnings per share:$0.58  $0.49     $0.61                   Weighted-average shares outstanding:              Basic 29,933,644   29,968,004      30,189,578    Diluted 30,011,773   30,033,679      30,251,315    Common shares outstanding 30,195,999   30,196,755      30,368,655     Hanmi Financial Corporation and Subsidiaries Consolidated Statements of Income (Unaudited)(Dollars in thousands, except share and per share data)  Twelve Months Ended  December 31,  December 31,  Percentage  2024  2023  Change Interest and dividend income:        Interest and fees on loans receivable$366,153  $339,811   7.8%Interest on securities 21,583   16,938   27.4%Dividends on FHLB stock 1,436   1,229   16.8%Interest on deposits in other banks 9,611   11,350   -15.3%Total interest and dividend income 398,783   369,328   8.0%Interest expense:        Interest on deposits 182,692   134,708   35.6%Interest on borrowings 6,746   6,867   -1.8%Interest on subordinated debentures 6,571   6,482   1.4%Total interest expense 196,009   148,057   32.4%Net interest income before credit loss expense 202,774   221,271   -8.4%Credit loss expense 4,419   4,342   1.8%Net interest income after credit loss expense 198,355   216,929   -8.6%Noninterest income:        Service charges on deposit accounts 9,381   10,147   -7.5%Trade finance and other service charges and fees 5,309   4,832   9.9%Gain on sale of Small Business Administration ("SBA") loans 6,112   5,701   7.2%Other operating income 10,783   13,499   -20.1%Total noninterest income 31,585   34,179   -7.6%Noninterest expense:        Salaries and employee benefits 83,368   81,398   2.4%Occupancy and equipment 18,146   18,340   -1.1%Data processing 14,876   13,695   8.6%Professional fees 6,956   6,255   11.2%Supplies and communications 2,261   2,479   -8.8%Advertising and promotion 3,028   3,105   -2.5%Other operating expenses 12,700   11,255   12.8%Total noninterest expense 141,335   136,527   3.5%Income before tax 88,605   114,581   -22.7%Income tax expense 26,404   34,540   -23.6%Net income$62,201  $80,041   -22.3%         Basic earnings per share:$2.06  $2.63    Diluted earnings per share:$2.05  $2.62             Weighted-average shares outstanding:        Basic 30,019,815   30,269,740    Diluted 30,102,336   30,330,258    Common shares outstanding 30,195,999   30,368,655     Hanmi Financial Corporation and Subsidiaries Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)(Dollars in thousands)  Three Months Ended  December 31, 2024  September 30, 2024  December 31, 2023     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 receivable (1)$6,103,264  $91,545  5.97% $6,112,324  $92,182  6.00% $6,071,644  $89,922  5.88%Securities (2) 998,313   5,866  2.38%  986,041   5,523  2.27%  961,551   4,582  1.93%FHLB stock 16,385   360  8.75%  16,385   356  8.65%  16,385   341  8.25%Interest-bearing deposits in other banks 204,408   2,342  4.56%  183,027   2,356  5.12%  181,140   2,338  5.12%Total interest-earning assets 7,322,370   100,113  5.45%  7,297,777   100,417  5.48%  7,230,720   97,183  5.34%                        Noninterest-earning assets:                       Cash and due from banks 54,678        54,843        61,146      Allowance for credit losses (69,291)       (67,906)       (68,319)     Other assets 246,744        251,421        251,660                              Total assets$7,554,501       $7,536,135       $7,475,207                              Liabilities and Stockholders' Equity                       Interest-bearing liabilities:                       Deposits:                       Demand: interest-bearing$79,784  $26  0.13% $83,647  $31  0.15% $86,679  $29  0.13%Money market and savings 1,934,540   16,564  3.41%  1,885,799   17,863  3.77%  1,669,973   14,379  3.42%Time deposits 2,346,363   26,816  4.55%  2,427,737   29,259  4.79%  2,417,803   25,869  4.24%Total interest-bearing deposits 4,360,687   43,406  3.96%  4,397,183   47,153  4.27%  4,174,455   40,277  3.83%Borrowings 141,604   1,634  4.59%  143,479   1,561  4.33%  205,951   2,113  4.07%Subordinated debentures 130,567   1,624  4.97%  130,403   1,652  5.07%  129,933   1,653  5.09%Total interest-bearing liabilities 4,632,858   46,664  4.01%  4,671,065   50,366  4.29%  4,510,339   44,043  3.88%                        Noninterest-bearing liabilities and equity:                       Demand deposits: noninterest-bearing 1,967,789        1,908,833        2,025,212      Other liabilities 162,064        171,987        177,321      Stockholders' equity 791,790        784,250        762,335                              Total liabilities and stockholders' equity$7,554,501       $7,536,135       $7,475,207                              Net interest income   $53,449       $50,051       $53,140                           Cost of deposits      2.73%       2.97%       2.58%Net interest spread (taxable equivalent basis)      1.44%       1.19%       1.47%Net interest margin (taxable equivalent basis)      2.91%       2.74%       2.92%                                                                        (1)       Includes average loans held for sale              (2)       Income 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)  Twelve Months Ended  December 31, 2024  December 31, 2023     Interest Average     Interest Average  Average  Income / Yield /  Average  Income / Yield /  Balance  Expense Rate  Balance  Expense Rate Assets               Interest-earning assets:               Loans receivable (1)$6,110,713  $366,153  5.99% $5,968,339  $339,811  5.69%Securities (2) 983,434   21,583  2.22%  967,231   16,938  1.78%FHLB stock 16,385   1,437  8.76%  16,385   1,229  7.50%Interest-bearing deposits in other banks 192,342   9,610  5.00%  230,835   11,350  4.92%Total interest-earning assets 7,302,874   398,783  5.46%  7,182,790   369,328  5.15%                Noninterest-earning assets:               Cash and due from banks 55,830        62,049      Allowance for credit losses (68,553)       (70,501)     Other assets 248,820        240,779                      Total assets$7,538,971       $7,415,117                      Liabilities and Stockholders' Equity               Interest-bearing liabilities:               Deposits:               Demand: interest-bearing$83,807  $119  0.14% $97,388  $117  0.12%Money market and savings 1,870,541   68,304  3.65%  1,547,911   44,066  2.85%Time deposits 2,433,516   114,269  4.70%  2,371,520   90,525  3.82%Total interest-bearing deposits 4,387,864   182,692  4.16%  4,016,819   134,708  3.35%Borrowings 154,193   6,746  4.38%  197,409   6,867  3.48%Subordinated debentures 130,325   6,571  5.04%  129,708   6,482  5.00%Total interest-bearing liabilities 4,672,382   196,009  4.20%  4,343,936   148,057  3.41%                Noninterest-bearing liabilities and equity:               Demand deposits: noninterest-bearing 1,920,492        2,173,813      Other liabilities 165,288        149,460      Stockholders' equity 780,809        747,908                      Total liabilities and stockholders' equity$7,538,971       $7,415,117                      Net interest income   $202,774       $221,271                   Cost of deposits      2.90%       2.18%Net interest spread (taxable equivalent basis)      1.27%       1.74%Net interest margin (taxable equivalent basis)      2.78%       3.08%                                (1)       Includes average loans held for sale               (2)       Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  Non-GAAP Financial Measures 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. This disclosure 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. 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)  December 31,  September 30,  June 30,  March 31,  December 31, Hanmi Financial Corporation2024  2024  2024  2024  2023 Assets$7,677,925  $7,712,299  $7,586,347  $7,512,046  $7,570,341 Less goodwill and other intangible assets (11,031)  (11,031)  (11,048)  (11,074)  (11,099)Tangible assets$7,666,894  $7,701,268  $7,575,299  $7,500,972  $7,559,242                Stockholders' equity (1)$732,174  $736,709  $707,059  $703,100  $701,891 Less goodwill and other intangible assets (11,031)  (11,031)  (11,048)  (11,074)  (11,099)Tangible stockholders' equity (1)$721,143  $725,678  $696,011  $692,026  $690,792                Stockholders' equity to assets 9.54%  9.55%  9.32%  9.36%  9.27%Tangible common equity to tangible assets (1) 9.41%  9.42%  9.19%  9.23%  9.14%               Common shares outstanding 30,195,999   30,196,755   30,272,110   30,276,358   30,368,655 Tangible common equity per common share$23.88  $24.03  $22.99  $22.86  $22.75                               (1)       There were no preferred shares outstanding at the periods indicated.    

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