Hanmi Financial ( (HAFC) ) has released its Q2 earnings. Here is a breakdown of the information Hanmi Financial presented to its investors.
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Hanmi Financial Corporation, headquartered in Los Angeles, operates Hanmi Bank, which serves multi-ethnic communities through its network of branches and loan production offices across several states, specializing in real estate, commercial, SBA, and trade finance lending to small and middle-market businesses.
In the second quarter of 2025, Hanmi Financial Corporation reported a net income of $15.1 million, or $0.50 per diluted share, a decrease from the previous quarter’s $17.7 million. Despite the decline in net income, the company saw improvements in operational metrics, including a 3.7% increase in preprovision net revenue and an expansion of the net interest margin to 3.07%.
Key financial highlights for the quarter included a 1.6% annualized growth in loans, driven by strong commercial and industrial as well as residential mortgage loan production. Deposits grew by 1.7%, with noninterest-bearing demand deposits making up over 30% of total deposits. Asset quality showed significant improvement, with criticized loans dropping by 71.8% and nonaccrual loans falling by 26.8%.
Despite the positive operational metrics, the quarter’s net income was impacted by a credit loss expense of $7.6 million. However, the company maintained a strong capital position, with a tangible common equity to tangible assets ratio of 9.58% and a common equity tier 1 capital ratio of 12.12%.
Looking ahead, Hanmi Financial remains focused on strengthening client relationships, expanding its market presence, and leveraging its balance sheet to achieve sustainable long-term growth, supported by a robust loan pipeline and improved asset quality.