Overview

* Hanmi Q2 net income falls to $15.1 mln due to credit loss expense

* Asset quality improves vs the prior quarter

* Deposits grow 1.7% qtr/qtr, with noninterest-bearing demand deposits atJune30, were 31.3% of total deposits

Outlook

* Hanmi expects "strong" loan pipeline in second half of 2025

* Company aims to deepen client relationships and expand market presence

* Hanmi focuses on leveraging balance sheet for sustainable growth

Result Drivers

* CREDIT LOSS EXPENSE - Net income impacted by $7.6 mln credit loss expense, per CEO Bonnie Lee

* ASSET QUALITY IMPROVEMENT - Criticized loans dropped 71.8% due to loan upgrades and charge-offs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS $0.5

Q2 Net $15.12

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy"

* Wall Street's median 12-month price target for Hanmi Financial Corp ( HAFC ) is $27.50, about 5.7% above its July 21 closing price of $25.92

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)