Financial Data and Key Metrics Changes - Net income for Q4 was $21.2 million, or $0.70 per diluted share, down 3.7% due to lower non-interest income [6] - For the full year 2025, net income reached $76.1 million, or $2.51 per diluted share, an increase of 22% [6] - Net interest income increased by 2.9% to $62.9 million in Q4, with net interest margin expanding by six basis points to 3.28% [14][16] - Return on average assets and return on average equity during Q4 were 1.07% and 10.14%, respectively [6] Business Line Data and Key Metrics Changes - Loan production for the full year increased by 36%, with residential and C&I loan production up 90% and 42%, respectively [7] - Commercial real estate exposure decreased from 63.1% to 61.3% of total loans [8] - Deposits grew by 3.8% in 2025, maintaining a healthy mix of non-interest-bearing deposits at approximately 30% of total deposits [8] Market Data and Key Metrics Changes - Deposits decreased by 1.3% in Q4, driven by a decline in demand deposits, money market, and savings [12] - USKC loan balance of $862 million represented approximately 13% of the total loan portfolio [12] - The company opened a representative office in Seoul, South Korea, to strengthen relationships and support customers expanding into the U.S. market [13] Company Strategy and Development Direction - The company expects to generate low to mid-single-digit loan growth while further diversifying the portfolio [19] - Focus on growing deposits to support loan growth and maintaining a stable funding mix [19] - Commitment to disciplined expense management while investing selectively in talent and technology [20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the effectiveness of their relationship-based banking model and the strength of their operational performance [4] - The company believes it entered 2026 in a strong position to build on momentum and create meaningful value for shareholders [20] Other Important Information - Non-performing assets as a percentage of total assets and allowance for credit losses as a percentage of total loans remained healthy at 0.26% and 1.07%, respectively [8] - The efficiency ratio improved to 54.7% from 60.3% the previous year [9] Q&A Session Summary Question: Can you provide color on the hospitality credit that was downgraded to Special Mention? - Management indicated that the loan is a senior loan with a strong sponsor undergoing a Property Improvement Plan, and they do not foresee any loss probabilities [22] Question: Thoughts around the growth of expenses and OREO costs? - Management noted that OREO costs might continue for a couple of quarters but are not indicative of ongoing run rates [24] Question: What is the outlook for mid-single-digit expense growth? - Management confirmed that mid-single-digit expense growth is a fair expectation based on previous trends [25] Question: Can you remind us about the CD repricing schedule? - Management provided details on maturing CDs and expected repricing rates, indicating a potential benefit to lower deposit costs [26] Question: Why not be more aggressive on the buyback? - Management stated that the board evaluates capital returns quarterly and will address share repurchases based on market conditions [27] Question: Comments on competition within the CD book? - Management acknowledged intense competition for CDs, with some competitors offering higher rates [32][33] Question: How should we think about the jumping-off point for expenses from Q4? - Management discussed predictable seasonal events affecting expenses and indicated a need for further analysis [38]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $21.2 million, or $0.70 per diluted share, down 3.7% due to lower non-interest income [5] - For the full year 2025, net income reached $76.1 million, or $2.51 per diluted share, an increase of 22% [5] - Net interest income increased by 2.9% in Q4, with net interest margin expanding by six basis points to 3.28% [5][15] - Return on average assets and return on average equity during Q4 were 1.07% and 10.14%, respectively [5] Business Line Data and Key Metrics Changes - Loan production for the full year increased by 36%, with residential and C&I loan production up 90% and 42%, respectively [7] - Commercial real estate exposure decreased from 63.1% to 61.3% of total loans [8] - Deposits grew by 3.8% in 2025, maintaining a healthy mix of non-interest-bearing deposits at approximately 30% of total deposits [8] Market Data and Key Metrics Changes - Fourth quarter loan production was $375 million, down 34% from the prior quarter [10] - Deposits decreased by 1.3% in Q4, driven by a decline in demand deposits, partially offset by an increase in time deposits [12] - USKC loan balance of $862 million represented approximately 13% of the total loan portfolio [12] Company Strategy and Development Direction - The company aims for low to mid-single-digit loan growth in 2026, focusing on further diversifying the portfolio [20] - Plans to grow deposits to support loan growth while maintaining a stable funding mix [20] - Commitment to disciplined expense management and maintaining strong asset quality through conservative underwriting standards [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the effectiveness of their relationship-based banking model and the strength of their operational performance [4] - The company believes it entered 2026 in a strong position to build on momentum and create value for shareholders [22] Other Important Information - Non-performing assets as a percentage of total assets and allowance for credit losses as a percentage of total loans remained healthy at 0.26% and 1.07%, respectively [8] - The efficiency ratio improved to 54.7% from 60.3% the previous year [9] Q&A Session Summary Question: Can you provide details on the hospitality credit that was downgraded to Special Mention? - Management indicated that the loan is a senior loan with a strong sponsor undergoing a Property Improvement Plan, and they do not foresee any loss probabilities [24] Question: What is the outlook for expenses this year? - Management expects mid-single-digit expense growth, with some ongoing costs related to OREO properties [25][26] Question: What is the CD repricing schedule for the first and second quarters? - Approximately $1.8 billion in CDs maturing at high threes and low fours in the first half of the year, with expectations to reprice at around 3.5% to 3.7% [27] Question: Why not be more aggressive on the buyback? - The board evaluates capital return quarterly, and share prices have been above tangible book value, affecting buyback decisions [28] Question: Can you comment on competition within the CD market? - Competition remains intense, with some banks offering higher rates, affecting CD retention rates [31][32]

NASDAQ | HAFC 4 Q 2 5 E a r n i n g s S u p p l e m e n t a l P r e s e n t a t i o n January 27, 2026 California | Colorado | Georgia | Illinois | New Jersey | New York | Texas | Virginia | Washington | | 4Q25 PERFORMANCE RESULTS | 5 – | 21 | | --- | --- | --- | --- | | TABLE OF | LOAN PORTFOLIO DETAILS | 22 – | 31 | | CONTENTS | | | | | | 4Q25 FINANCIAL SUMMARY | 32 – | 32 | | | NON-GAAP RECONCILIATION | 33 – | 34 | 2 FORWARD-LOOKING STATEMENTS Hanmi Financial Corporation (the "Company") cautions investor ...

Financial Performance - Net income for Q4 2025 was $21.2 million, or $0.70 per diluted share, a decrease of 3.7% from Q3 2025[3] - For the full year 2025, net income increased to $76.1 million, or $2.51 per diluted share, up 22% from $62.2 million in 2024[4] - The effective tax rate for Q4 2025 was 29.5%, with a provision for income taxes of $8.9 million, compared to $9.4 million in Q3 2025[29] - Basic earnings per share for the twelve months ended December 31, 2025, was $2.53, up from $2.06 in 2024[62] - Income before tax grew by 21.8% to $107,927,000 from $88,605,000[61] Income and Expenses - Net interest income for Q4 2025 increased by 2.9% to $62.9 million, driven by lower interest expense on deposits[11] - Noninterest income for Q4-2025 was $8,299 thousand, a decrease of 16.0% from Q3-2025, primarily due to the absence of death benefit claims and a decline in gains from residential mortgage loans[24] - Full-year 2025 noninterest income totaled $34.0 million, an increase of 7.6% from $31.6 million in 2024, driven by higher gains on SBA loans and bank-owned life insurance income[25] - Noninterest expense for Q4-2025 increased to $38.6 million, a rise of 3.5% from Q3-2025, due to higher advertising, personnel costs, and professional fees[26] - Full-year 2025 noninterest expense was $147.8 million, an increase of 4.6% from $141.3 million in 2024, primarily due to higher salaries and benefits[28] Asset and Loan Management - Total assets increased to $7.87 billion as of December 31, 2025, reflecting a 0.2% rise from $7.86 billion at September 30, 2025, driven by a $35.1 million increase in loans receivable[30] - Loans receivable rose to $6.56 billion, a 0.5% increase from the previous quarter, with loan production at $374.8 million[8] - Average interest-earning assets rose to $7,620,166 thousand, reflecting a 1.0% increase from Q3-2025 and a 4.1% increase from Q4-2024[18] - Loans receivable increased to $6,456,239 thousand, up 2.4% from Q3-2025 and 5.8% from Q4-2024[18] - New loan production for Q4 2025 was $374.8 million, with a weighted average interest rate of 6.90%, while payoffs totaled $123.1 million at an average rate of 6.46%[32] Capital and Equity - Stockholders' equity rose to $796.4 million, an increase of $16.8 million from $779.6 million at September 30, 2025, including net income of $13.1 million for Q4[36] - Hanmi's preliminary common equity tier 1 capital ratio was 12.05% as of December 31, 2025, up from 12.00% in the previous quarter[37] - Total risk-based capital ratio for Hanmi was 15.06% at the end of Q4 2025, slightly increasing from 15.05% in Q3 2025[38] - Tangible common equity per common share increased to $26.27 in December 2025 from $25.64 in September 2025[70] - Stockholders' equity to assets ratio rose to 10.12% in December 2025 from 9.92% in September 2025[70] Credit Quality - Nonperforming loans represented 0.28% of total loans, showing an improvement of two basis points from the prior quarter[8] - Criticized loans increased to $97.0 million, or 1.48% of loans, compared to $45.4 million, or 0.69% in the prior quarter[40] - Nonperforming loans decreased to $18.1 million, or 0.28% of loans, down from $19.4 million, or 0.30% in the previous quarter[41] - The allowance for credit losses was $69.9 million at December 31, 2025, stable compared to $69.8 million at September 30, 2025[45] - Credit loss expense for Q4-2025 was $1.9 million, down from $2.1 million in Q3-2025, with $1.7 million attributed to loan losses[22] Market and Operational Efficiency - The efficiency ratio for Q4-2025 was 54.95%, compared to 52.65% in Q3-2025, indicating a decline in operational efficiency[27] - The average yield on loans receivable decreased to 5.94% in Q4-2025 from 6.03% in Q3-2025[19] - The cost of deposits decreased to 2.37% in Q4-2025 from 2.51% in Q3-2025, reflecting improved funding costs[20] - Total interest and dividend income increased by 3.0% to $410,928,000 from $398,783,000[61] - Interest expense decreased by 10.9% to $174,738,000 from $196,009,000[61]

LOS ANGELES, Jan. 27, 2026 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the fourth quarter of 2025 and full year. Net income for the fourth quarter of 2025 was $21.2 million, or $0.70 per diluted share, compared with $22.1 million, or $0.73 per diluted share, for the third quarter of 2025. The return on average assets for the fourth quarter of 2025 was 1.07% and the return on average equity was ...

LOS ANGELES, Jan. 13, 2026 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (Nasdaq: HAFC) (“Hanmi”), the holding company for Hanmi Bank, today announced that it will report fourth quarter 2025 financial results after the market close on Tuesday, January 27, 2026. Management will host a conference call that same day, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the results. Investment professionals and all current and prospective shareholders are invited to access the live call on January 27 ...

Group 1 - Hanmi Financial Corporation (HAFC) is experiencing significant activity in the options market, particularly with the Jan 16, 2026 $20.00 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Hanmi Financial holds a Zacks Rank 2 (Buy) in the Banks - West industry, which is in the top 12% of the Zacks Industry Rank, with recent analyst activity showing an increase in earnings estimates from 67 cents to 71 cents per share for the current quarter [3] Group 2 - The high implied volatility for Hanmi Financial may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]

Core Viewpoint - Hanmi Financial (HAFC) is currently identified as a strong value stock, holding a Zacks Rank 2 (Buy) and an A grade in the Value category, indicating its potential for undervaluation in the market [4][8]. Valuation Metrics - HAFC has a P/E ratio of 9.54, which is lower than the industry average of 9.96. Over the past year, its Forward P/E has fluctuated between 7.95 and 11.89, with a median of 9.30 [4]. - The company's P/B ratio stands at 0.99, compared to the industry average of 1.28. In the last 52 weeks, HAFC's P/B has ranged from 0.74 to 1.10, with a median of 0.94 [5]. - HAFC's P/S ratio is 1.92, which is significantly lower than the industry's average of 2.45, indicating a favorable valuation based on sales [6]. - The P/CF ratio for HAFC is 10.15, which is attractive compared to the industry average of 10.97. Its P/CF has varied from 7.18 to 11.16 over the past year, with a median of 9.60 [7]. Investment Outlook - The combination of these valuation metrics suggests that Hanmi Financial is likely undervalued, and its strong earnings outlook further positions it as one of the market's strongest value stocks [8].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Hanmi Financial (HAFC) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][4][7]. Company Analysis - Hanmi Financial (HAFC) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4]. - The stock is trading at a P/E ratio of 9.54, which is lower than the industry average P/E of 9.70, suggesting it may be undervalued [4]. - HAFC's Forward P/E has fluctuated between 7.95 and 11.89 over the past year, with a median of 9.30, indicating stable valuation [4]. - The P/B ratio for HAFC is 0.99, compared to the industry average of 1.24, further supporting the notion of undervaluation [5]. - The P/S ratio for HAFC stands at 1.77, which is lower than the industry's average P/S of 2.28, reinforcing its attractiveness to value investors [6]. - Overall, the combination of these metrics positions Hanmi Financial as one of the strongest value stocks in the market currently [7].

Core Viewpoint - Hanmi Financial (HAFC) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based solely on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [1][2]. - The correlation between changes in earnings estimates and near-term stock price movements is well-established, with institutional investors using these estimates to determine fair value [4][6]. Recent Developments for Hanmi Financial - Hanmi Financial is projected to earn $2.52 per share for the fiscal year ending December 2025, indicating no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Hanmi Financial has increased by 5.4%, reflecting a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Hanmi Financial to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [10].