Hanmi Financial Corporation (HAFC): Business Model Canvas [Dec-2025 Updated]

You need to see exactly how Hanmi Financial Corporation (HAFC) makes its money and manages risk, so I've mapped out their entire Business Model Canvas using their latest figures. Honestly, the core story isn't just the $6.53 billion loan portfolio or the solid 3.22% Net Interest Margin from Q3 2025; it's how their deep cultural competency fuels relationship banking for SMEs while they originate $570.8 million in new loans. If you're assessing this bank, you need to see the nine pieces that fit together-from their key activities to their cost structure-so dig in below to see the full, precise breakdown.

Hanmi Financial Corporation (HAFC) - Canvas Business Model: Key Partnerships

You're looking at the external relationships Hanmi Financial Corporation (HAFC) relies on to execute its business, especially as of late 2025. These aren't just vendors; they are crucial for scaling specific business lines like government-backed lending and digital efficiency.

Government Agencies for SBA Loan Guarantees

Hanmi Financial Corporation actively partners with government agencies, primarily the Small Business Administration (SBA), to facilitate lending to small and middle market businesses. This relationship is quantified by the volume of SBA loans originated and sold into the secondary market, often leveraging the guarantee program.

For the third quarter of 2025, the volume of SBA loans sold was $32.6 million. The realized gain on the sale of these SBA loans for the same period was $1.9 million. This activity is part of a targeted effort, as management increased the quarterly SBA production target to a range of $45 million to $50 million for the second half of 2025, up from the previous target of $40 million to $45 million.

The composition of the loan portfolio as of March 31, 2025, shows the embedded SBA activity:

Correspondent Banks for Liquidity and Interbank Services

Liquidity management relies on a stable deposit base and, when necessary, access to wholesale funding markets or interbank services. While the specific list of correspondent banks isn't public, the balance sheet activity reflects the need for these relationships.

As of September 30, 2025, Hanmi Financial Corporation reported total deposits of $6.77 billion. The ratio of average loans to average deposits for the third quarter of 2025 stood at 94.6%, indicating a high utilization of core deposits for lending. In the second quarter of 2025, average borrowings fell by 66.5%, suggesting a reliance on or preference for core deposits over wholesale funding sources during that period.

Financial Technology (FinTech) Providers for Digital Platform Enhancements

To enhance operational efficiency across the loan life cycle, Hanmi Bank has engaged with specialized FinTech providers. A key partnership announced in August 2025 involved the selection of Lenders Cooperative to automate and manage the complete loan life cycle, from application intake through origination to servicing. This partnership is intended to empower Hanmi Bank to scale lending operations with greater speed and efficiency.

Mortgage Brokers for Residential Loan Origination Volume

The origination of residential mortgage loans is a source of noninterest income through gains on sale. The volume generated through various channels, including brokers, is a key metric.

For the third quarter of 2025, the volume of residential mortgage loan sales reached $67.8 million, achieved with a premium of 2.43%. To be fair, there were no residential mortgage loan sales reported in the second quarter of 2025.

• Residential Mortgage Loan Sales Volume (Q3 2025): $67.8 million
• Gain on Sale Premium (Q3 2025): 2.43%

Community Organizations for Local Outreach and CRA Compliance

Hanmi Financial Corporation demonstrates its commitment to community outreach and meeting Community Reinvestment Act (CRA) obligations through specific financial commitments and organizational recognition. The Community Lending Division is a recognized partner in this effort.

As of March 31, 2025, Hanmi Financial Corporation had a $7.5 million long-term commitment to a Community Reinvestment Act fund. The leadership and performance of this area were recognized in 2025, with Executive Vice President and Chief Community Lending Officer, Anna Chung, named to the Women to Watch list, and Hanmi's Community Lending Division recognized as a 2025 Top Team by American Banker.

The physical footprint supporting this local outreach includes a network across nine states:

These facilities are located in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia.

Hanmi Financial Corporation (HAFC) - Canvas Business Model: Key Activities

Commercial and real estate loan origination:

• Q3 2025 production totaled $570.8 million.
• Commercial and Industrial (C&I) loan production specifically reached $211.5 million quarter-over-quarter.

Deposit gathering and liability management:

Managing the net interest margin:

• The Net Interest Margin (NIM) for Q3 2025 expanded to 3.22%.
• Net interest income for the quarter was $61.1 million.

Executing the US Korean Companies (USKC) strategic initiative:

• USKC loan balances reached $910 million, representing 14% of total loans.
• USKC deposit balances grew by 9.5% to surpass $1 billion for the first time.

Maintaining regulatory compliance and strong credit quality:

Hanmi Financial Corporation also executed capital management activities:

• Repurchased 199,698 common shares at an average price of $23.45, totaling $4.7 million.
• Declared a cash dividend of $0.27 per share.

Hanmi Financial Corporation (HAFC) - Canvas Business Model: Key Resources

You're looking at the core assets that let Hanmi Financial Corporation actually run its business and serve its clients. These aren't just line items; they are the engine room, so let's look at the hard numbers as of late 2025.

The loan portfolio, which is the primary earning asset, totaled $6.53 billion as of September 30, 2025. That's the book of business they are managing and growing. To fund that, Hanmi Financial Corporation maintained a stable deposit base, hitting $6.77 billion at the same date, September 30, 2025. Honestly, keeping deposits stable while growing loans is a key balancing act for any bank.

The capital position is definitely strong. As of Q3 2025, the ratio of tangible common equity to tangible assets stood at 9.80%. Also, the Common Equity Tier 1 capital ratio was reported at 12.00%, which puts the bank in a very secure position, well above regulatory minimums. Their total assets were $7.86 billion on September 30, 2025.

Hanmi Financial Corporation relies heavily on its physical and human capital to execute its strategy. They have a physical footprint that includes 32 full-service branches, complemented by five loan production offices and three loan centers spread across nine states. This network supports their specialized commercial lending teams, who possess deep market expertise, particularly in real estate, commercial, SBA, and trade finance lending to small and middle market businesses.

Here's a quick look at how the balance sheet components stack up as of September 30, 2025, which gives you a clearer picture of the resource scale:

The quality of those resources is just as important as the size. For instance, the loan portfolio quality shows that Nonperforming Assets were only 0.27% of total loans, and the ACL was set at 1.07% of loans. Furthermore, the composition of their funding base shows a healthy mix, with noninterest-bearing demand deposits making up 30.8% of total deposits.

You can see the operational scale through their recent activity and structural details:

• Q3 2025 Loan Production: $570.8 million.
• Loan-to-Deposit Ratio (9/30/2025): 96.5%.
• Loan Portfolio Diversification (9/30/2025): Commercial & Industrial (C&I) was 62%, Commercial Real Estate (CRE) was 16%, and Real Estate Residential (RRE) was 6%.
• Physical Footprint: 32 full-service branches.
• Capital Strength Metric: Tangible Common Equity to Tangible Assets ratio of 9.80%.

Hanmi Financial Corporation (HAFC) - Canvas Business Model: Value Propositions

Specialized real estate, commercial, and SBA lending expertise.

Hanmi Financial Corporation (HAFC) focuses its lending activity heavily on commercial real estate, which represented 61.4% of its total loan portfolio as of the third quarter of 2025. Commercial and industrial (C&I) loans made up 16.1% of the portfolio at that time. Hanmi Financial Corporation has a stated goal to expand C&I lending and SBA activities while managing CRE exposure. For the second half of 2025, the quarterly SBA loan production target was increased to a range of $45 million to $50 million. Total loan production for the third quarter of 2025 reached $570.8 million, with C&I production specifically at $211 million for that quarter.

Here's a look at the loan portfolio mix as of September 30, 2025:

Deep cultural and linguistic competency for multi-ethnic communities.

Hanmi Bank was originally founded to serve the Korean American community in Los Angeles. Today, Hanmi Financial Corporation serves multi-ethnic communities across a network spanning nine states. This network includes 32 full-service branches, five loan production offices, and three loan centers as of late 2025. These locations are in California, Colorado, Georgia, Illinois, New Jersey, New York, Texas, Virginia, and Washington.

Relationship-based banking model for small and middle market businesses.

The relationship-based model is evidenced by the stability of core funding sources. Noninterest-bearing demand deposits remained healthy, accounting for approximately 31% of total bank deposits in the third quarter of 2025. Total deposits grew by 0.6% during that quarter, reaching $6.77 billion. The bank specializes in lending to small and middle market businesses.

Conservative credit underwriting and excellent asset quality.

Hanmi Financial Corporation emphasizes a conservative credit underwriting culture. This is reflected in strong asset quality metrics reported for the third quarter of 2025. Nonperforming assets stood at 0.27% of total loans. Criticized loans were reported at 0.69% of total loans. The allowance for credit losses was maintained at 1.07% of total loans at the end of the third quarter of 2025. Furthermore, the company's capital position was strong, with the ratio of tangible common equity to tangible assets at 9.80%.

Key Asset Quality Indicators (Q3 2025):

• Nonperforming Assets to Loans: 0.27%
• Criticized Loans to Total Loans: 0.69%
• Allowance for Credit Losses to Loans: 1.07%
• Tangible Common Equity to Tangible Assets: 9.80%

Comprehensive trade finance and treasury management solutions.

Hanmi Bank offers a range of services to support international trade and corporate cash flow management for its clients. Treasury management services are a key offering alongside specialized lending. Trade finance solutions are designed to reduce risk and facilitate cash flow for international transactions.

Trade Finance Offerings Include:

• Letter of Credit (L/C) issuance and negotiation for importers and exporters.
• Import/Export Financing, such as Trust Receipt (T/R) and Purchase Advance (P/A).
• Handling of Documentary Collection, including Document against Acceptance (D/A's) and Document against Payment (D/P's).

Hanmi Financial Corporation (HAFC) - Canvas Business Model: Customer Relationships

You're looking at how Hanmi Financial Corporation builds and maintains its client base, which is clearly centered on a relationship-first approach, especially for its core commercial audience. The management explicitly stated in their Q3 2025 earnings call that they remain focused on executing strategies, deepening client relationships, and optimizing the balance sheet. This isn't just about transactions; it's about being a long-term partner.

Dedicated relationship managers for commercial clients

For the small and middle market businesses that form the backbone of Hanmi Bank's lending-specializing in real estate, commercial, SBA, and trade finance-the dedicated relationship manager is key. This structure supports their strategic priority, which is growing the Commercial and Industrial (C&I) banking segment. You saw this focus translate into real production numbers; for the third quarter of 2025, C&I new loans hit $211,000,000. To put that in perspective, the C&I loan portfolio saw a 16% increase in 2024, showing the tangible results of this dedicated approach. Honestly, for complex business financing, having a dedicated person who understands your specific industry-like the U.S. subsidiaries of Korean companies they actively court-is non-negotiable.

High-touch, personalized service through the branch network

The physical footprint is designed to deliver that personalized service across key markets. Hanmi Bank serves multi-ethnic communities through a network that, as of late 2025, includes 32 full-service branches, five loan production offices, and three loan centers. This network spans states like California, Texas, Illinois, and Georgia, where they recently celebrated a new branch opening in Duluth, Georgia. The deposit growth in Q1 2025, which was up 3%, was directly attributed to contributions from these newly opened branches, which is a testament to the relationship-based banking model working on the ground. Here's a quick look at where that physical presence is concentrated, based on the latest available geographic breakdown for the loan portfolio as of March 31, 2025:

What this estimate hides is the specific allocation of relationship managers, but the geographic spread shows where the high-touch effort is focused.

Self-service digital banking platforms (online and mobile)

While the high-touch service is crucial for commercial clients, Hanmi Bank supports its entire customer base with digital tools, including 24/7 mobile business banking. The health of the digital relationship is often reflected in the composition of deposits. For instance, noninterest-bearing demand deposits, which often signal active transactional use of bank services (both digital and physical), were strong. At the end of Q3 2025, these deposits accounted for 30.8% of total deposits, up from 31.2% at the end of Q1 2025. This stability, hovering around 31% to 33% across late 2024 and 2025, suggests clients are keeping significant operating cash within the bank, whether through online treasury management or in-person tellers.

Community-focused engagement to build long-term trust

Hanmi Bank's foundation is rooted in serving multi-ethnic communities, starting with the Korean American community in 1982. This community focus translates into specific engagement efforts, such as continuing to add new relationships and expand existing ones with the U.S. subsidiaries of Korean companies. They also show commitment through their lending practices, originating 420 small business and community development loans totaling $261 million in 2024, which included $96 million for affordable housing and economic growth. The overall relationship strategy is supported by solid operational metrics as of Q3 2025:

• Total Deposits: $6.77 billion as of September 30, 2025.
• Loans Receivable: $6.53 billion at September 30, 2025.
• Efficiency Ratio: Declined to 52.65% in Q3 2025, showing disciplined expense management alongside relationship growth.
• Q4 2025 Dividend Declared: $0.27 per share.

The bank is definitely focused on building connections that last.

Hanmi Financial Corporation (HAFC) - Canvas Business Model: Channels

You're looking at how Hanmi Financial Corporation (HAFC) gets its value proposition to its customers, which is a mix of traditional physical presence and modern digital tools. This is about access, plain and simple.

The physical footprint remains a core channel, especially for the commercial and relationship-focused lending business. As of the third quarter of 2025 reporting, Hanmi Bank operates a network designed to serve its multi-ethnic communities across key U.S. markets.

The physical distribution network is detailed below:

The emphasis on direct interaction is clear, supporting their specialization in real estate, commercial, SBA, and trade finance lending to small and middle-market businesses. The success of this channel is reflected in the loan production figures; for instance, loan production for the third quarter of 2025 accelerated to $570.8 million, which was up 73% from the prior quarter. Commercial loans were a strong contributor to this production.

Direct commercial lending teams and relationship officers are the human interface for these larger transactions. The company noted that ongoing investments in these commercial lending teams helped drive production in key asset classes, such as Commercial & Industrial (C&I) lending, which surged by 296% to $211 million in Q3 2025. This suggests the relationship officers are the primary channel for deploying capital in their target segments.

Digital channels support the retail and business banking side of the house, handling the day-to-day flow of funds. Hanmi Bank offers services through:

• Online & Mobile Banking
• Merchant Services
• Treasury Management

The scale of the deposit base managed through these channels as of September 30, 2025, was $6.77 billion. A significant portion of this base, specifically 30.8% of total deposits, was held in noninterest-bearing demand deposits at the end of the third quarter. This mix indicates that while digital platforms handle transactional banking, the core relationship remains tied to the deposit relationship, often facilitated by the in-person teams.

Finance: draft 13-week cash view by Friday.

Hanmi Financial Corporation (HAFC) - Canvas Business Model: Customer Segments

You're looking at the core client base for Hanmi Financial Corporation (HAFC) as of the third quarter of 2025. Honestly, their strategy is quite focused, blending deep community ties with targeted commercial lending.

Small and middle market businesses (SMEs).

This group is central to Hanmi Bank's lending activity. They specialize in real estate, commercial, SBA, and trade finance lending specifically to these SMEs. The Commercial and Industrial (C&I) loan portfolio shows this focus clearly. For instance, at September 30, 2025, C&I loans made up 16.1% of the total loans receivable, which stood at $6.53 billion. You also see their commitment to the Small Business Administration (SBA) business mentioned as a driver for loan production in earlier quarters, which directly serves the SME segment.

Multi-ethnic communities, primarily Korean-American.

This is a key differentiator for Hanmi Financial Corporation. The bank serves multi-ethnic communities across its network, which spans 9 states. The focus on the Korean-American community is supported by specific strategic initiatives. The Corporate Korea initiative, for example, drove significant growth in the C&I portfolio. Furthermore, deposits tied to the U.S. Korea Corporate (USKC) initiative were reported at 15% of total deposits in the first quarter of 2025. They support this with a physical footprint including 32 full-service branches, five loan production offices, and three loan centers in key markets like California, Texas, and New York.

Here's a quick look at the geographic reach supporting these communities:

• California: 71% of a specific portfolio segment as of Q1 2025.
• Texas: 12% of that same segment.
• Illinois: A smaller but present market share.
• Georgia: A newer expansion market, with a representative office opened to deepen Korean client relationships.

Commercial Real Estate (CRE) investors and owner-operators.

CRE remains the largest single asset class on Hanmi Bank's books. As of the third quarter of 2025, Commercial Real Estate loans accounted for 61.4% of the total loans receivable. Management has noted an ongoing effort to manage and reduce this exposure as a percentage of the total portfolio over time, but it still represents the largest customer base for their lending products. They remain disciplined in underwriting practices for this segment.

Individual consumers for deposit and residential mortgage products.

While commercial activity drives much of the headlines, individual consumers are vital for deposit funding and residential lending. At the end of Q3 2025, total deposits were $6.77 billion. A significant portion of this funding base comes from core relationships, with noninterest-bearing demand deposits holding steady at 30.8% of total deposits in Q3 2025. On the asset side, Residential/Consumer loans represented 16.0% of the loan portfolio as of September 30, 2025.

The Residential Real Estate (RRE) portfolio specifically was valued at $979.5 million at March 31, 2025, making up 16% of the total loan portfolio then. For these consumer mortgage products, Hanmi targets high-quality originations, often focusing on conservative Loan-to-Value (LTV) ratios between 60% and 70%.

Here's a breakdown of the loan portfolio composition as of September 30, 2025:

Finance: draft the next section on Value Propositions by Friday.

Hanmi Financial Corporation (HAFC) - Canvas Business Model: Cost Structure

You're looking at the core costs driving Hanmi Financial Corporation's operations as of late 2025, based on the third quarter results.

The cost structure is heavily influenced by funding costs, which are the interest paid to depositors and lenders. For the three months ended September 30, 2025, the average cost paid on interest-bearing deposits declined eight basis points to 3.56%. Conversely, the average cost of borrowings increased to 4.63% for the same period, up from 4.33% in the prior year period, as lower-rate borrowings matured or were paid off. The resulting Net Interest Income for Q3 2025 was $61.1 million.

Noninterest expenses reflect the cost of running the business outside of funding. Hanmi Financial Corporation managed these costs well, as evidenced by the efficiency ratio declining to 52.65% in Q3 2025, down from 55.74% in Q2 2025. This expense management, combined with higher net interest income and noninterest income, led to Preprovision Net Revenue (PPNR) increasing by 16.4%, or $4.7 million, quarter-over-quarter.

The physical footprint cost associated with the 32 full-service branch network and other facilities is captured in occupancy and equipment. For Q3 2025, occupancy and equipment expense saw an increase of $0.2 million compared to the previous quarter. For context, the absolute figure for Q4 2024 was $4,503 thousand (or $4.503 million).

Credit risk management is a direct cost component. The Allowance for Credit Losses (ACL) stood at $69.8 million at September 30, 2025, representing 1.07% of total loans. The actual Credit Loss Expense recognized for Q3 2025 was $2.1 million, which was a decrease of $5.5 million from the second quarter.

Technology and data processing expenditures are necessary for modern banking operations. While specific 2025 figures for total technology spend aren't detailed, the latest available component data from Q4 2024 shows Data processing expenditures were $3,800 thousand (or $3.800 million).

Here's a quick look at the key cost-related metrics from Q3 2025:

• Allowance for Credit Losses (ACL) to Loans Ratio: 1.07%
• Credit Loss Expense (Q3 2025): $2.1 million
• Efficiency Ratio (Q3 2025): 52.65%
• Noninterest-bearing demand deposits as a percentage of total deposits: 30.8%

You can see the breakdown of the latest reported expense figures in the table below:

The management of noninterest expenses is clearly a focus, given the drop in the efficiency ratio. Also, the cost of borrowings is rising, which is something to watch as older, lower-rate debt rolls off.

Hanmi Financial Corporation (HAFC) - Canvas Business Model: Revenue Streams

You're looking at the core ways Hanmi Financial Corporation brings in money, which is really the engine room of any bank's business model. For late 2025, based on the third quarter results, the revenue streams are clearly dominated by traditional banking activities, but with some nice boosts from asset sales.

The primary driver remains the spread between what Hanmi Financial earns on its assets and what it pays out on its liabilities. This is the Net Interest Income, and it was strong in Q3 2025.

Here's a look at the key components making up the top line for the third quarter of 2025:

The Noninterest Income stream, which is everything outside of the core lending spread, saw a healthy bump. It's important to see what's driving that 22.4% quarter-over-quarter growth, as it often includes less predictable items.

You can break down that noninterest income into a few specific, reportable sources that Hanmi Financial relies on:

• Income from bank-owned life insurance (BOLI) death benefits was $900,000 in Q3 2025.
• Gains from selling residential mortgages contributed to the total.
• Fees and gains from originating and selling SBA loans are also part of this bucket.

Let's drill down on the specific gains from loan sales, as these are transactional revenue sources that can fluctuate:

The Gains on the sale of residential mortgage loans were a notable contributor. For the third quarter of 2025, Hanmi Financial sold $67.8 million worth of residential mortgages, which generated a specific gain of $1.2 million.

For the Fees from trade finance and SBA loan origination, the Small Business Administration (SBA) program provided a clear number. Hanmi Financial originated $45 million in SBA loans during the quarter. Selling a portion of these, specifically $32.6 million in SBA loans, resulted in a gain of $1.9 million.

Finally, the Income from bank-owned life insurance (BOLI) is a steady, albeit smaller, component. The death benefits received in Q3 2025 were $900,000. Honestly, this is a nice, non-operational boost when it hits.

Finance: draft 13-week cash view by Friday.