Hanmi Financial Corporation Sees Strong Q1 Performance Driven by Disciplined Execution
Hanmi Financial Corporation, a leading banking institution, has reported impressive results for its first quarter of 2026. In a recent conference call, Bonnie Lee, President and Chief Executive Officer of the company, highlighted the strong financial performance across key metrics, citing the execution of core initiatives and growth strategy as key drivers.
According to the quarterly report, Hanmi delivered solid results in a seasonally slower period for loan production. Strong commercial and industrial (C&I) originations and expansion of new full-service commercial banking relationships contributed to this success. The company also maintained disciplined underwriting and pricing standards, which helped maintain profitability.
The growth in total deposits was another significant highlight, with a 7% annualized increase on a year-over-year basis. Non-interest-bearing deposits remained healthy at approximately 30% of the total deposits, showcasing the company's ability to attract depositors. New loan originations were also impressive, with C&I loan production increasing by 64%. However, this was offset by higher than normal payoffs, resulting in a slight decline in total loans.
Hanmi's focus on risk management and asset quality has yielded excellent results. Non-performing assets decreased by 38% during the quarter, representing just 0.16% of total assets. The company successfully collected a sizable payment for a non-accrual loan and sold two OREO properties for a net gain, further demonstrating its disciplined approach to risk management.
The Corporate Korea initiative has also shown promising results, with deposit growth from these customers increasing by 10%. Although loan activity remains muted due to ongoing uncertainty about the impact of tariffs, Hanmi's focus on building strong relationships will likely pay off in the long run. The company's commitment to disciplined expense management is evident, with non-interest expense decreasing by 2% for the quarter.
The efficiency ratio further improved by 150 basis points to 53.5%, a testament to Hanmi's ability to optimize its operations and improve profitability. All capital ratios have also seen improvement, driven by the company's strong financial performance. As a result, Hanmi was able to return significant capital to shareholders in the form of dividends and share repurchases totaling $13 million.
