Hanmi Financial Corporation (NASDAQ: HAFC) announced that its wholly owned subsidiary, Hanmi Bank, has been named to the Piper Sandler Sm-All Stars Class of 2026. The designation recognizes the bank's strong financial performance and operating fundamentals, placing it among an elite group of only 25 institutions nationwide for this year.

This marks the second time Hanmi Bank has received this specific recognition from Piper Sandler. The award is given annually to a select group of banks and thrifts with market capitalizations below $2.5 billion that exceed industry median performance in key measures. These metrics include earnings growth, loan growth, deposit growth, and return on average equity. Recipients must also meet stringent asset quality and capital standards.

Recognition criteria

The Piper Sandler Sm-All Stars designation serves as a benchmark for high-performing small-cap financial institutions. To qualify, banks must demonstrate superior performance across several core financial indicators while maintaining robust balance sheet health.

Strategic focus

Bonnie Lee, President and Chief Executive Officer of Hanmi Financial Corporation, stated that the recognition underscores the success of the company's customer relationship banking model. She emphasized that the award reflects a disciplined approach to risk management and the dedication of employees.

"We believe this recognition underscores our strong financial performance," Lee said. "As we continue to execute our strategic priorities, we remain focused on delivering consistent performance and long-term value for our shareholders."

About Hanmi Bank

Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through a network of 32 full-service branches. The bank also operates five loan production offices and three loan centers across nine states: California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia. Hanmi Bank specializes in real estate, commercial, SBA, and trade finance lending for small and middle market businesses.

Hanmi Financial Corporation, the parent company of Hanmi Bank, has closed a $55.0 million private placement of fixed-to-floating rate subordinated notes. The company intends to use the net proceeds from this offering to redeem its outstanding $110.0 million of callable subordinated notes and for general corporate purposes. This capital raise allows Hanmi Financial to manage its debt maturity profile while maintaining liquidity for broader operational needs.

Transaction Details

The offering represents a strategic move to refinance existing debt obligations. By issuing new subordinated notes, Hanmi Financial is addressing its upcoming redemption requirements for older callable instruments. D.A. Davidson & Co. served as the sole placement agent for the private offering. The company was advised by Luse Gorman, PC, while D.A. Davidson & Co. was advised by Manatt, Phelps & Phillips, LLP.

Use of Proceeds

Management indicated that the primary use of the net proceeds will be the redemption of the $110.0 million in callable subordinated notes currently outstanding. The remaining funds will be allocated to general corporate purposes, providing flexibility for future financial planning and potential investment opportunities.

What the Numbers Show

The issuance of $55.0 million against a $110.0 million redemption target suggests that Hanmi Financial may be utilizing additional internal capital or other liquidity sources to fully retire the callable notes, or that the redemption will be partial or staggered. The shift to fixed-to-floating rate structures typically reflects management's view on interest rate environments, aiming to balance initial yield certainty with long-term flexibility as rates evolve.