Hanmi: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 27, 2026, Hanmi (NASDAQ:HAFC) announced that pre-provision net revenue, which measures earnings before credit loss provisions, grew 10.8% sequentially. For long-term investors, the bank's ability to expand margins while aggressively resolving troubled commercial real estate loans demonstrates operating resilience.

Three things management said stand out.

1. Corporate Korea Banking Drives High-Quality Deposit Expansion

Hanmi's specialized Corporate Korea, or USKC, unit targets American subsidiaries of Korean corporations to secure low-cost deposit growth. These core deposit relationships boost liquidity and lower reliance on pricier wholesale funding.

Deposit balances for USKC customers increased by $145 million or 12%, surpassing $1.3 billion.
-- Anthony I. Kim, Chief Banking Officer

2. Management Resolves Problem Commercial Loans Early

Rather than dragging out workouts on troubled commercial real estate, or CRE, properties, management accepts immediate charge-offs to free up capital for higher-yielding loans. Selling distressed assets quickly removes credit overhangs and keeps nonperforming assets at 0.12% of total assets.

This action enables us to avoid potentially prolonged resolution process and more quickly redeploy this funds into interest earning assets with a more attractive risk adjusted return.
-- Bonita I. Lee, President and Chief Executive Officer

3. Debt Restructuring and Swaps Protect Future Margins

Management actively reshaped its balance sheet by redeeming expensive subordinated debt, which is secondary debt paid after primary loans, and executing interest rate swaps to cap funding costs. These structural fixes permanently lower interest expenses and insulate profitability against volatile rate environments.

As a result, the company reduced its ongoing interest expense by $550 thousand annually and avoided the burden of floating rate debt.
-- Romolo C. Santarosa, Chief Financial Officer

Looking Ahead

Economic growth and low unemployment provide a solid backdrop for regional banking, letting Hanmi leverage its low loan-to-value commercial lending and capital buffers. Management sees clear runway ahead as customer activity stays healthy across core markets.

As we look ahead, we remain constructive on the operating environment.
-- Bonita I. Lee, President and Chief Executive Officer

Disciplined loan underwriting and expanding corporate deposit relationships position the bank to generate consistent returns while keeping credit losses under control.

We remain focused on disciplined execution, sustainable growth, strong profitability, and long-term value for our shareholders.
-- Bonita I. Lee, President and Chief Executive Officer

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