Hanmi Financial (US:HAFC)2026-01-27 21:05Financial 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]