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Hanmi Financial Corporation NEWS RELEASE Hanmi Reports First Quarter 2021 Results 2021 First Quarter Highlights : ● • • • . . • • • • First quarter net income of $ 16.7 million , or $ 0.54 per diluted share , up from $ 14.3 million , or $ 0.47 per diluted share from the prior quarter and up from $ 2.4 million or $ 0.08 per diluted share for the same quarter a year ago . Loans receivable of $ 4.82 billion , down slightly from the prior quarter ; when excluding Paycheck Protection Program ( “ PPP ” ) loans , essentially unchanged quarter over quarter . Strong production of $ 348.0 million offset by second draw PPP loan sales , payoffs and forgiveness on first draw PPP loans . Deposits of $ 5.51 billion , up 4.5 % from the prior quarter driven by a 14.5 % increase in noninterest - bearing demand deposits ; cost of interest - bearing deposits fell 15 basis points from the prior quarter . Credit loss expense was $ 2.1 million , compared with $ 5.1 million for the prior quarter and the allowance for credit losses was 1.83 % of loans at March 31 , 2021 , or 1.94 % excluding PPP loans . Nonperforming assets declined 33.7 % from year - end and were 0.88 % of total assets at March 31 , 2021 compared with 1.38 % at December 31 , 2020 ; loans modified under the CARES Act were down 25.1 % to $ 116.4 million and 7.1 % of these were included in nonperforming assets . First quarter net interest income was $ 46.0 million compared with $ 46.9 million for the prior quarter ; first quarter prepayment penalties were $ 0.3 million compared with $ 0.8 million for the prior quarter . First quarter net interest margin was 3.09 % ( 3.13 % excluding PPP loans ) , compared with 3.13 % ( 3.18 % excluding PPP loans ) for the prior quarter . First quarter noninterest income increased 11.3 % from the prior quarter to $ 9.8 million and included $ 2.5 million of gains from the sale of $ 108.6 million of second draw PPP loans . Noninterest expense was $ 29.5 million , down 4.5 % from the previous quarter primarily due to $ 1.4 million of capitalized expenses related to second draw PPP loans ; Efficiency ratio for the first quarter was 52.92 % ( 58.07 % excluding securities gains and second draw PPP loan gains and origination costs ) compared with 55.53 % for the prior quarter . Hanmi remained well capitalized with a Total risk - based capital ratio of 14.96 % and a Common equity Tier 1 capital ratio of 11.36 % at March 31 , 2021 ; tangible common equity to tangible assets ratio was 8.87 % ( 9.27 % excluding PPP loans ) at the end of the first quarter . For more information about Hanmi , please see the Q1 2021 Investor Update ( and Supplemental Financial Information ) , which is available on the Bank's website at www.hanmi.com and via a current report on Form 8 - K on the website of the Securities and Exchange Commission at www.sec.gov . LOS ANGELES – April 27 , 2021 – Hanmi Financial Corporation ( NASDAQ : HAFC , or “ Hanmi ” ) , the parent company of Hanmi Bank ( the “ Bank ” ) , today reported net income for the 2021 first quarter of $ 16.7 million , or $ 0.54 per diluted share , compared with $ 14.3 million , or $ 0.47 per diluted share for the 2020 fourth quarter and $ 2.4 million , or $ 0.08 per diluted share for the 2020 first quarter . Bonnie Lee , President and Chief Executive Officer , said , “ Hanmi is off to a good start in 2021 with solid first quarter performance highlighted by strong loan production , notable deposit growth , careful noninterest expense management , a significant improvement in nonaccrual loans , and excellent earnings . Loan production reached $ 348.0 million and included $ 131.5 million of second draw PPP loans . More notable , first quarter loan production without PPP was 4 % higher than the same quarter a year - ago . Deposit gathering activities in the quarter were 1