third quarter of 2026
Filed Oct 27, 2026Hanmi Reports 2026 Third Quarter Results
Third-quarter net income increased to $ 23,683, net interest income increased 5.8%, net interest margin expanded to 3.44%, and deposits increased 1.4%. The result also included higher credit loss expense of $ 4,530 and a rise in criticized loans to $ 134,417.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net incomeGAAP | $23.68M | 0.8 % | 7.4 % |
| Q3 2026 basic earnings per shareGAAP | $ 0.80 | – | – |
| Q3 2026 diluted earnings per shareGAAP | $ 0.80 | – | – |
| Q3 2026 net interest income before credit loss expenseGAAP | $67.57M | 5.8 % | 10.6 % |
| Q3 2026 total interest and dividend incomeGAAP | $108.7M | 5.2 % | 3.3 % |
| Q3 2026 total interest expenseGAAP | $41.09M | 4.1 % | -6.9 % |
| Q3 2026 credit loss expenseGAAP | $4.53M | 282.0 % | 111.2 % |
| Q3 2026 total noninterest incomeGAAP | $9.03M | 8.2 % | -8.6 % |
| Q3 2026 gain on sale of Small Business Administration loansGAAP | $2.28M | 73.3 % | 23.0 % |
| Q3 2026 total noninterest expenseGAAP | $39.85M | 2.1 % | 6.7 % |
| Q3 2026 income before taxGAAP | $32.22M | 0.8 % | 2.4 % |
| Q3 2026 income tax expenseGAAP | $8.54M | 0.7 % | -9.1 % |
| Q3 2026 effective tax rateGAAP | 26.5% | unchanged | – |
| Q3 2026 return on average assetsGAAP | 1.17 % | -0.03 | 0.05 |
| Q3 2026 return on average stockholders’ equityGAAP | 10.90 % | -0.19 | 0.21 |
| Q3 2026 net interest margin (taxable equivalent basis)other | 3.44 % | 0.08 | 0.22 |
| Q3 2026 average yield on loansother | 6.03 % | 0.13 | 0.00 |
| Q3 2026 average rate on interest-bearing depositsother | 3.18 % | 0.01 | -0.38 |
| Q3 2026 cost of depositsother | 2.25 % | 0.00 | -0.26 |
| Q3 2026 efficiency rationon-GAAP | 52.02 % | -2.05 | -0.63 |
| Q3 2026 preprovision net revenuenon-GAAP | $36.75M | 10.8 % | 9.4 % |
| Nine months ended September 30, 2026 net incomeGAAP | $69.75M | – | 27.2 % |
| Nine months ended September 30, 2026 diluted earnings per shareGAAP | $ 2.33 | – | – |
| Nine months ended September 30, 2026 net interest income before credit loss expenseGAAP | $194.6M | – | 12.3 % |
| September 30, 2026 total assetsGAAP | $8.04B | 0.5 % | 2.4 % |
| September 30, 2026 total loans held for investmentGAAP | $6.57B | 0.5 % | 0.6 % |
| September 30, 2026 loans held for saleGAAP | $31.24M | 84.1 % | 379.8 % |
| September 30, 2026 total depositsGAAP | $7.06B | 1.4 % | 4.3 % |
| September 30, 2026 stockholders’ equityGAAP | $808.3M | -0.5 % | 3.7 % |
| September 30, 2026 tangible common equity to tangible assetsnon-GAAP | 9.93 % | -0.10 | 0.13 |
| September 30, 2026 tangible common equity per common sharenon-GAAP | $ 27.03 | -0.01 | 1.39 |
| September 30, 2026 Hanmi Financial common equity tier 1 capital ratioother | 12.30 % | 0.02 | 0.30 |
| September 30, 2026 nonperforming assets to total assetsGAAP | 0.12 % | 0.00 | -0.15 |
| September 30, 2026 criticized loansGAAP | $134.4M | $ 20,471 | $ 89,052 |
| September 30, 2026 criticized loans to total loansGAAP | 2.05 % | 0.31 | 1.36 |
| September 30, 2026 allowance for credit losses to loansGAAP | 1.08 % | – | – |
| Q3 2026 net loan charge-offs to average loansGAAP | 0.27 % | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- $8.3 million in dividends
- $4.9 million in share repurchases
- 151,048 shares of common stock repurchased at an average price of $31.79
- $0.28 per share cash dividend for the 2026 third quarter, paid on August 19, 2026
- 1.84 million shares available under the share repurchase program as of September 30, 2026
What drove it
- Net interest income increased due principally to a $3.2 million increase in interest income on loans and a $1.5 million increase in interest income from deposits in other banks, partially offset by a $1.5 million increase in interest expense on deposits.
- Average interest-earning assets increased 2.4 % and average deposits increased 2.8 %.
- New loan production was $543.6 million at an average rate of 6.61%, while payoffs were $283.5 million at an average rate of 6.55%.
- Total deposits increased on a $107.5 million increase in money market and savings.
- Noninterest income increased primarily because gain on sale of SBA loans increased to $ 2,284 from $ 1,318.
- The efficiency ratio decreased to 52.02 % from 54.07 %.
Concerns
- Credit loss expense increased to $ 4,530 from $ 1,186, reflecting higher net charge-offs.
- Hanmi recognized a $3.2 million charge-off on a $21.2 million commercial real estate loan when it was moved to held-for-sale.
- Criticized loans increased to $ 134,417 from $ 113,946, driven primarily by two multifamily loans subject to rent control restrictions in New York City totaling $51.4 million.
- Total noninterest income was $ 9,030, down -8.6 % from $ 9,880 in the prior-year quarter.
- Stockholders’ equity decreased to $ 808,309 from $ 812,680, including a $16.5 million increase in unrealized after-tax losses on securities available for sale.
What to watch
- Sustainability of the 3.44 % net interest margin, including loan yields and the cost of deposits.
- Deposit growth and the mix of noninterest-bearing demand deposits, which represented 30.4 % of total deposits.
- Resolution of the $18.0 million problem loan held for sale and the trajectory of criticized loans.
- Credit loss expense and net charge-offs following the Q3 charge-off.
- Loan production, payoffs, and the resulting pace of loan balance growth.
Balance sheet and cash flow
- Cash and due from banks were $ 348,576 at September 30, 2026, compared with $ 331,206 at June 30, 2026.
- Securities available for sale, at fair value, were $ 869,499 at September 30, 2026, compared with $ 896,610 at June 30, 2026.
- Hanmi issued $55.0 million of fixed-to-floating subordinated notes due July 31, 2036.
- The proceeds from the issuance of the 2036 Notes and the proceeds from the sale of securities of $44.5 million were used to redeem the $110.0 million callable subordinated notes due 2031.
- Subordinated debentures were $ 76,147 at September 30, 2026, compared with $ 130,773 at June 30, 2026.
Analysis
Hanmi reported Q3 2026 net income of $ 23,683, or $ 0.80 per diluted share, compared with $ 23,505, or $ 0.79 per diluted share, in Q2 2026. Net interest income before credit loss expense increased 5.8 % to $ 67,570 and preprovision net revenue, a non-GAAP measure, increased 10.8 % to $ 36,751. The core earnings improvement was partially offset by credit loss expense of $ 4,530, compared with $ 1,186 in the preceding quarter.
Margin and funding trends were favorable in the quarter. Net interest margin on a taxable equivalent basis expanded to 3.44 % from 3.36 %, while the average yield on loans increased to 6.03 % from 5.90 % and the average rate on interest-bearing deposits rose to 3.18 % from 3.17 %. Average interest-earning assets increased 2.4 %, and average deposits increased 2.8 %. Net interest income included $0.4 million of loan interest reversals, $1.2 million of prepayment fees and accelerated deferred fee income from loan payoffs, and a $0.2 million special dividend from FHLB.
Balance-sheet growth was measured. Total loans held for investment increased 0.5 % to $ 6,568,701, while total deposits increased 1.4 % to $ 7,055,774. New loan production was $543.6 million, but elevated payoffs of $283.5 million and other portfolio movements limited the increase in loans. Deposit growth was led by money market and savings balances, and noninterest-bearing demand deposits represented 30.4 % of total deposits. Noninterest income rose sequentially to $ 9,030 on higher SBA loan sale gains, while total noninterest expense increased 2.1 % to $ 39,849, including $1.1 million of accelerated amortization related to the subordinated debt redemption.
Credit quality requires attention despite stable headline nonperforming ratios. The company recorded a $3.2 million charge-off on a $21.2 million commercial real estate loan moved to held-for-sale. Net charge-offs were $4.3 million, or 0.27% of loans annualized, compared with $1.3 million, or 0.08% of loans annualized, in Q2. Nonperforming assets to total assets remained 0.12 %, but criticized loans rose to $ 134,417 from $ 113,946, including downgrades of two New York City rent-controlled multifamily loans totaling $51.4 million.
Capital remained above regulatory minimums, with Hanmi Financial common equity tier 1 capital of 12.30 % and tangible common equity to tangible assets of 9.93 %. Hanmi returned $8.3 million in dividends and $4.9 million in share repurchases during the quarter. It also issued $55.0 million of 2036 Notes and used those proceeds together with $44.5 million of securities-sale proceeds to redeem $110.0 million of 2031 Notes. The release provided no quantitative forward guidance.
Management, verbatim
Hanmi delivered solid financial performance in the third quarter, driven by 5.8% growth in net interest income and a 10.8% increase in preprovision net revenue.
Bonnie Lee, President and Chief Executive Officer
In the third quarter, we generated robust loan production of $544 million across our business, reflecting the strength of the Hanmi franchise and healthy market demand.
Bonnie Lee, President and Chief Executive Officer
Looking ahead, our strong capital position, growing deposit base, disciplined expense management, and positive earnings momentum position us well to capitalize on opportunities across our markets and continue delivering long-term value for our shareholders.
Bonnie Lee, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward quantitative guidance
- Prior-release outlook for comparison
- Operating cash flow
- Free cash flow
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AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.