Hanmi Financial Corporation

Ladies and gentlemen, welcome to the HANME Financial Corporation second quarter 2026 conference call. As a reminder, today's call is being recorded for replay purposes. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I would now like to turn... The call over to Ben Brodkowitz, Investor Relations, for the company. Please go ahead.

Thank you, operator, and thank you all for joining us today to discuss HOMNY's second quarter 2026 results. This afternoon, HOMNY issued its earnings release and quarterly supplemental slide presentation to accompany today's call. Both documents are available in the IR section of the company's website at hominy.com. I'm here today with Bonnie Lee, President and Chief Executive Officer of Hominy Financial Corporation, Anthony Kim, Chief Banking Officer, and Ron Santarosa, Chief Financial Officer. Bonnie will begin today's call with an overview. Anthony will discuss loan and deposit activities. Ron will provide details on our financial performance. and then Bonnie will provide closing comments before we open the call up for your questions. Before we begin, I would like to remind you that today's comments may include forward-looking statements under the federal securities laws. Forward-looking statements are based on current plans, expectations, events and financial industry trends that may affect the company's future operating results and financial position. Our actual results may differ materially from those contemplated by our forward-looking statements, which involve risks and Uncertainties. Discussion of the factors that could cause our actual results to differ materially from these forward-looking statements can be found in our SEC filings, including our reports on Forms 10-K and 10-Q. In particular, we direct you to the discussion of certain risk factors affecting our business contained in our earnings release, our investor presentation and in our Form 10-Q. With that, I would now like to turn the call over to Bonnie Lee. Bonnie, please go ahead.

Thank you, Ben, and good afternoon, everyone. Thank you for joining us today to discuss HANMI's second quarter 2026 results. HANMI delivered another quarter of a strong financial performance driven by solid earnings growth, expanding customer relationships, disciplined execution, and excellent credit quality. Our results reflect the continued momentum across the franchise. We generated healthy loan production, strengthened our deposit base, further diversified the loan portfolio, and maintained strong asset quality. Combined with the disciplined expense management, these efforts translate into higher earnings and improved profitability. Importantly, we continue to create value for shareholders while preserving capital strength. During the quarter, we returned 58% of earnings through dividends and share repurchases, while further improving profitability metrics. Return on average assets increased to 1.2%, and return on average equity improved to 11.1%. Taken together, these results demonstrate the resilience of our business model, the strength of our customer relationships, and our ability to execute consistently in a dynamic operating environment. Now, turning to some highlights for the quarter, net income increased to $23.5 million or 79 cents per diluted share compared to 22.6 million or 75 cents per diluted share last quarter. Net interest income increased 1% sequentially. While net interest margin declined modestly by two basis points to 3.36%, excluding the impact of the San Francisco Federal Home Loan Bank dividend policy change, margin would have been slightly higher. Deposits grew 2.3% linked quarter, driven by 5.2% increase in non-interest bearing accounts, led by growth in commercial accounts, Non-interest-bearing deposits increased to 31% of total deposits, reflecting the strength and quality of our funding base. New loan originations totaled $372 million. While production was slightly lower than the prior quarter, year-to-date originations are up 11% compared with the first half of 2025. We remain encouraged by the strength of our loan pipeline. Historically, loan activity has accelerated during the second half of the year, and we believe we are well positioned to capitalize on that trend. Our portfolio diversification strategy continues to gain traction. Commercial and industrial loans increased 1.6% sequentially and 28% year-over-year, now representing 18% of total loans. Our efficiency ratio of 54% reflects continued operating discipline and a strong focus on driving productivity throughout the organization. We continue to maintain excellent credit quality with our disciplined underwriting standards and active portfolio management. Our conservative risk culture continues to serve us well. Non-performing loans improved to 0.15% of total loans, and then performing assets improved to 0.12% of total assets, underscoring the quality of our loan portfolio and effectiveness of our risk management framework. Turning to corporate career initiative, our corporate career strategy continues to generate meaningful results. The investments we have made in specialized bankers and targeted client coverage are translating into deeper customer relationships, stronger engagement and growing business activity. Deposits from corporate career clients increased 6.2% during the quarter to $1.2 billion, reaching an all-time high of approximately 17% of total deposits. Loan balances grew to $826 million, representing 13% of the total loan portfolio. This initiative remains a significant growth opportunity and a meaningful differentiator for HANMI. Last, I would like to speak to capital and shareholder returns. Strong earnings and disciplined balance sheet management drove additional improvement in our capital position. At the same time, we returned $13.6 million to shareholders through dividends and share repurchases. Our capital strengths allow us to pursue growth opportunities, invest in the franchise, and continue delivering attractive shareholder returns. I'll now turn the call over to Anthony Kim, our Chief Banking Officer, to discuss loan production and deposit trends in greater detail. Anthony?