Key Highlights

  • Hanmi Financial reported third quarter net income of USD 23.7 million, or USD 0.80 per diluted share.
  • Net interest margin expanded 8 basis points to 3.44%, supported by higher yields on interest earning assets.
  • Net interest income increased 5.8% to USD 67.6 million, reflecting growth in average earning assets and deposits.
  • The company returned 55.6% of third quarter earnings to shareholders through dividends and share repurchases.

Net Interest Margin Expansion Drives Earnings Growth

Hanmi Financial Corporation (NASDAQ:HAFC) reported third quarter net income of USD 23.7 million, or USD 0.80 per diluted share, up from USD 23.5 million, or USD 0.79 per diluted share, in the second quarter of 2026. Net interest income increased 5.8% to USD 67.6 million, reflecting 2.4% growth in average interest earning assets funded by 2.8% growth in average deposits.

Net interest margin expanded 8 basis points to 3.44%, as the average yield on loans increased 13 basis points while the average rate on interest-bearing deposits rose just 1 basis point. Preprovision net revenue grew 10.8% during the quarter, reflecting the combined effect of margin expansion and revenue growth.

Loan Production and Credit Quality

The bank generated loan production of USD 544 million during the quarter, with new loan production increasing USD 171.7 million, or 46.2%, though elevated payoffs of USD 127.0 million partially offset this growth, resulting in total loans increasing a more modest 0.5% to USD 6.57 billion. Deposits grew 1.4% to USD 7.06 billion, driven primarily by core deposit growth.

Credit loss expense increased USD 3.3 million from a single loan charge-off, specifically a USD 3.2 million charge-off on a USD 21.2 million commercial real estate loan moved to held-for-sale status. Despite this item, asset quality metrics remained stable, with nonperforming assets to total assets unchanged from the second quarter at 0.12%.

Capital Return and Balance Sheet Strength

The bank returned 55.6% of third quarter earnings to shareholders, comprising USD 8.3 million in dividends and USD 4.9 million in share repurchases. Capital ratios remained healthy, with tangible common equity to tangible assets at 9.93% and a common equity Tier 1 capital ratio of 12.30%.

Continued loan production at the pace seen this quarter could support further net interest income growth, while elevated payoff activity, which partially offset new originations this quarter, remains a variable that could affect the pace of net loan growth in coming periods.

Margin and Credit Metrics to Track

Net interest margin trends relative to the 3.44% reported this quarter, the pace of loan production relative to elevated payoff activity, and credit quality metrics following this quarter's single loan charge-off are among the items that may shape how the fourth quarter compares with this result. Capital return relative to the 55.6% payout ratio reported this quarter remains a reference point for assessing the bank's shareholder return policy.