Hanmi Reports 2025 Fourth Quarter and Full Year Results

Core Insights - Hanmi Financial Corporation reported a net income of $21.2 million for Q4 2025, a decrease from $22.1 million in Q3 2025, with earnings per diluted share at $0.70 compared to $0.73 in the previous quarter [2][7] - For the full year 2025, net income increased to $76.1 million, or $2.51 per diluted share, up from $62.2 million, or $2.05 per diluted share, in 2024, reflecting a robust growth of 22% [3][4] Financial Performance - The return on average assets for Q4 2025 was 1.07%, down from 1.12% in Q3 2025, while the return on average equity decreased to 10.14% from 10.69% [2][7] - Net interest income for Q4 2025 rose by 2.9% to $62.9 million, driven by lower interest expenses on deposits [10][12] - The net interest margin for Q4 2025 was 3.28%, an increase of six basis points from the previous quarter [12][20] Loan and Deposit Growth - Loans receivable increased to $6.56 billion, a 0.5% rise from the previous quarter, with loan production for Q4 2025 at $374.8 million [7][32] - Total deposits were $6.68 billion, down 1.3% from Q3 2025, with noninterest-bearing demand deposits representing 30.2% of total deposits [7][29] Asset Quality - Nonperforming loans represented 0.28% of total loans, showing an improvement from the previous quarter [7][22] - Credit loss expense for Q4 2025 was $1.9 million, down from $2.1 million in Q3 2025, indicating strong credit quality management [22][23] Noninterest Income - Noninterest income for Q4 2025 was $8.3 million, a decrease of 16.0% from Q3 2025, primarily due to lower income from bank-owned life insurance [24][25] - For the full year 2025, noninterest income increased to $34.0 million, up 7.6% from 2024, driven by higher gains on the sale of SBA loans [25][26] Expense Management - Noninterest expense for Q4 2025 increased by 3.5% to $39.1 million, attributed to higher salaries and professional fees [26][27] - The efficiency ratio for Q4 2025 was 54.95%, compared to 52.65% in Q3 2025, reflecting increased operational costs [26][27]