Q2 2026 Hanmi Financial Corp Earnings Call Transcript
Key Points
- Hanmi Financial Corp (HAFC) reported strong financial performance with net income increasing to $23.5 million or $0.79 per diluted share, up from $22.6 million or $0.75 per diluted share in the previous quarter.
- The company achieved a 2.3% growth in deposits, driven by a 5.2% increase in non-interest-bearing accounts, highlighting the strength of its funding base.
- Hanmi Financial Corp (HAFC) maintained excellent credit quality, with non-performing loans improving to 0.15% of total loans and non-performing assets improving to 0.12% of total assets.
- The Corporate Korea initiative continues to generate meaningful results, with deposits from Corporate Korea clients increasing by 6.2% during the quarter to $1.2 billion.
- The company returned 58% of earnings to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder value.
- Net interest margin declined modestly by 2 basis points to 3.36%, impacted by changes in the San Francisco Federal Home Loan Bank dividend policy.
- Loan production decreased by $6 million or 1.6% from the prior quarter, primarily due to a decline in C&I, SBA, and equipment finance.
- There was an increase in delinquencies due to a $21.2 million CRE credit that was downgraded, although the bank remains well secured on this loan.
- Non-interest expense increased by 1.7% to $39 million, driven by higher salaries and benefits and the absence of a gain on the sale of OREO recognized in the first quarter.
- The company faces ongoing economic uncertainty, including rising energy costs and geopolitical tensions, which could impact future loan demand and growth.
Ladies and gentlemen, welcome to the Hanmi Financial Corporation's second-quarter 2026 conference call. As a reminder, this call is being recorded for replay purposes. (Operator Instructions)
I would now like to turn the call over to Ben Brodkowitz, Investor Relations for the company. Please go ahead.
Thank you operator, and thank you all for joining us today to discuss Hanmi's second-quarter 2026 results. This afternoon, Hanmi issued its earnings release and quarterly supplemental slide presentation to accompany today's call. Both documents are available in the IR section of the company's website at hanmi.com.
I'm here today with Bonnie Lee, President and Chief Executive Officer of Hanmi Financial Corporation; Anthony Kim, Chief Banking Officer; and Ron Santarosa, Chief Financial Officer. Bonnie will begin today's call with an overview, Anthony will discuss loan and deposit activities, Ron will provide details on our financial performance, and then Bonnie will provide closing comments before we
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