Hanmi Financial Corporation

Ladies and gentlemen, welcome to the Hanmi Financial Corporation's third quarter 2026 conference call. As a reminder, today's call is being recorded for replay purposes. Currently, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, 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 third 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 HOMNY.com. I'm here today with Bonnie Lee, President and Chief Executive Officer of HOMNY 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 Thank you, Ben, and good afternoon, everyone. Thank you for joining us today to discuss Hanmi's third quarter 2026 results. Hanmi delivered a solid quarter with excellent deposit growth, robust loan production, strong asset quality, and prudent capital management.

As a result, pre-provisioned net revenues grew 10.8% sequentially, reflecting an increase in net interest income and margin, as well as a disciplined expense management. Credit loss expense was higher, but demonstrated our commitment to resolving credit issues quickly. Collectively, our performance this quarter shows the durability of our franchise, continued momentum across all lines of business, and our ability to generate sustainable, profitable growth. Now turning to some highlights for the quarter, net income increased from last quarter to $23.7 million or 80 cents per daily share. Deposits grew 1.4% on a lean quarter basis with the core deposits increasing 1.9%. reflecting the strength and quality of our funding base while non-interest bearing deposits remain stable at 30% of total deposits. Loan originations were strong at $544 million with a notable increase in CNI bonds. Net interest income increased 5.8% sequentially and net interest margin increased by 8 basis points to 3.44%. We maintained disciplined expense management, improving our efficiencies ratio by more than 200 basis points to 52%, demonstrating our ability to generate positive operating leverage. Credit loss expense was $4.5 million and reflected a $3.2 million loan charge-off to resolve a previously identified CRE loan. The return on average assets for the third quarter was 1.17% and the return on average equity was 10.90%. Moving on to our corporate career initiative, this area of our business activities continues to generate meaningful results. The investments we have made in specialized bankers and targeted client coverage are deepening customer relationships and driving increased business activities. Deposits from Corporate Korea clients increased 12% during the quarter to $1.3 billion, reaching an all-time high of approximately 19% of total deposits, while loans for Corporate Korea clients represent 12% of total loans. This initiative continues to be a significant growth opportunity and a key differentiator for Hanmi. Turning now to asset quality. Hanmi's credit metrics continue to demonstrate discipline underwriting and active portfolio oversight. During the quarter, we took two actions that underscore our proactive approach to credit risk management. First, we enter into an agreement to sell the previously identified CRE loan with a closing expected during the fourth quarter. This action enables us to avoid a potentially prolonged resolution process and more quickly redeploy these funds into interest earning assets with a more attractive risk adjusted returns. In addition, following changes to local rent control regulations in New York City, we proactively reassessed two multifamily loan relationships and downgraded these loans to reflect this evolving risk environment. Although these two loans are current, we believe these actions illustrate our commitment to identifying issues early and addressing them decisively to preserve the long-term strength of the loan portfolio. All told, delinquent loans and non-performing loans continue to be a low percentage of total loans at 0.2% and 0.14% respectively at quarter end. Non-performing assets also remain constant at 0.12% of total assets. Last, I would like to highlight our capital strength and prudent capital management. Tangible common equity to tangible assets was 9.93% and all regulatory capital ratios were strong. For the solid earnings for the third quarter, we returned 55.6% of third quarter net income to shareholders through dividends and share repurchases. Our capital position provides HOMI flexibility to pursue attractive growth opportunities Invest strategically in the business and continue delivering compelling returns to shareholders. 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?