Hanmi Financial Posts 6.2% Net Income Growth, 7.2% Deposit Rise in Q1
Hanmi Financial’s Q1 net income rose 6.2% to $22.6 million, boosting ROAA to 1.18% and ROAE to 10.86%. Annualized deposits grew 7.2% while net interest margin expanded ten basis points to 3.38% and nonperforming assets fell to 0.16%.
1. Q1 Financial Results
Hanmi Financial reported net income of $22.6 million, or $0.75 per diluted share, a 6.2% increase from Q4 2025. Return on average assets climbed to 1.18% and return on average equity reached 10.86%, supported by net interest income growth and margin expansion to 3.38%.
2. Deposit and Loan Growth
Total deposits increased 1.8% sequentially to $6.8 billion, reflecting 7.2% annualized growth, with noninterest-bearing demand deposits stable at 30% of the mix. Loan production rose 0.8% to $377.9 million, driven by a 64% surge in commercial and industrial loan originations from new relationships.
3. Asset Quality and Capital
Nonperforming assets fell by 38% to 0.16% of total assets and nonperforming loans improved to 0.19% of the portfolio. Capital ratios strengthened, with tangible common equity to tangible assets at 10.11% and CET1 at 12.20%, while $13.4 million was returned to shareholders via $8.6 million in dividends and $4.8 million in buybacks.
4. Outlook
Management cited a strong loan and deposit pipeline and expects continued net interest margin expansion and deposit growth. Confidence in maintaining stable expenses and high asset quality underpins the expectation of sustained financial performance through 2026.