Financial Data and Key Metrics Changes - First Business Bank reported a pre-tax, pre-provision earnings growth of nearly 15% over 2024, with a return on average tangible common equity exceeding 15% for the year [5][6] - Tangible book value per share increased by 14% year-over-year, and earnings per share (EPS) grew by 14% over 2024, surpassing the long-term annual goal of 10% earnings growth [5][6] - The net interest margin (NIM) for the fourth quarter declined by 15 basis points to 3.53%, primarily due to a non-accrual interest reversal, but the target range for NIM remains at 3.60%-3.65% [16][17] Business Line Data and Key Metrics Changes - The private wealth business generated a record $3.8 million in fee income, up 11% year-over-year, while service charges increased nearly 20% year-over-year [9] - Net interest income for the full year grew by 10%, meeting the double-digit growth goal, attributed to robust loan and deposit growth [9][10] - Non-interest income showed resilience despite lower SBA gains and variable income streams, achieving 10% operating revenue growth for the full year [10][11] Market Data and Key Metrics Changes - Loan balances grew by approximately $39 million, or 5% annualized during the fourth quarter, and $261 million, or 8% over the same period last year [11] - Core deposit balances increased by 12% from both the linked and prior year quarters, primarily from core interest-bearing and money market accounts [14] - The company expects loan growth to rebound to typical double-digit rates in 2026, driven by solid loan demand and a strong regional economy [12][13] Company Strategy and Development Direction - The company aims to continue achieving double-digit growth by investing in talent, technology, and maintaining prudent underwriting practices [24] - The board approved a 17% increase in the quarterly cash dividend, reflecting confidence in future financial success [6] - The company emphasizes organic growth as the best way to drive shareholder value, rather than pursuing M&A opportunities [72][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong pipelines in commercial real estate and C&I loans, as well as potential benefits from changes in federal tax policy [13][72] - The company is confident in maintaining a strong and stable margin, with expectations for continued double-digit growth in net interest income [17][18] - Management acknowledged challenges from elevated CRE payoff activity but remains committed to achieving growth targets [12][81] Other Important Information - The company experienced an isolated credit situation with a $20.4 million downgrade in CRE loans related to a single borrower, but overall asset quality remains strong [7][8] - An accounting classification change was made to present the net benefit of partnership investments, which will continue going forward [18][19] Q&A Session Summary Question: Details on the CRE relationship affecting NPAs - Management provided insights on appraisals and loan-to-value ratios, indicating a 72% LTV across seven properties [30][31] Question: Expectations for credit costs in the coming year - Management clarified that charge-offs for the quarter were primarily related to equipment finance, with no specific reserves needed for the downgraded CRE loans [32][33] Question: Fee income growth guidance - Management confirmed a 10% growth expectation for overall fees, excluding certain non-recurring items [35][36] Question: Equipment finance portfolio balance and expectations - The transportation segment of the Equipment Finance portfolio was reported at $21 million, down from $61 million previously [53][54] Question: Confidence in achieving double-digit loan growth - Management expressed confidence based on strong pipelines and improved team performance, despite recent higher payoff levels impacting growth [80][81]

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 ...

Core Insights - The regional banking sector is showing signs of recovery, particularly in commercial real estate (CRE), as valuations normalize and lending activity increases [1][3][4] - Class A office spaces are experiencing a resurgence, indicating a potential turnaround in the commercial real estate market [2][3] - The S&P Regional Banking ETF has increased by over 17% since its lows in November 2025, contrasting with the S&P Financial Sector's modest 4% rise [5] Group 1: Regional Banking Sector Recovery - The regional banking sector is benefiting from a combination of Federal Reserve actions and increased lending activity, leading to improved outlooks compared to six to ten months ago [1][3] - There is a notable shift in the commercial real estate landscape, with a recovery in Class A office spaces, suggesting a positive trend for regional banks [2][3] - The sector has maintained solid credit performance, with only seven basis points of charge-offs reported in the last quarter, indicating strong credit activity [9] Group 2: Challenges and Trends - Concerns remain regarding the impact of private credit on the financial sector, particularly following recent auto-related failures [10][12] - The regional banks have largely avoided risky lending practices that have plagued non-bank institutions, positioning them favorably in the current environment [8][11] - The ongoing economic environment is characterized by uncertainty, with potential risks from tariffs and the effects of AI on job creation and productivity [17][21][22] Group 3: Future Outlook and Innovations - The regional banking sector is expected to benefit from technological advancements, particularly in AI, which could enhance productivity and operational efficiency [33][35] - Consolidation within the regional banking industry is becoming a common strategy to compete against larger banks and fintech challengers, as seen in the recent merger announcements [39][40] - Regional banks have a defined sphere of influence, allowing them to focus on profitable sub-markets and maintain close relationships with local businesses [29][30]

Core Viewpoint - GBank Financial Holdings Inc. reported a net income of $4.3 million for Q3 2025, reflecting unusual expenses impacting earnings, while core revenues showed significant growth across various segments [1][5][18]. Financial Performance - Net income for Q3 2025 was $4.3 million, or $0.30 per diluted share, down from $4.8 million in Q2 2025 and $5.0 million in Q3 2024 [1][18]. - For the nine months ended September 30, 2025, net income was $13.5 million, or $0.93 per diluted share, compared to $13.4 million, or $1.02 per diluted share for the same period in 2024 [1]. - Adjusted diluted earnings per share for Q3 2025 was $0.44, excluding unusual expenses [3]. Revenue and Income Breakdown - Total net revenue for Q3 2025 was $20.2 million, a 13.5% increase from $17.8 million in Q2 2025 and a 24.8% increase from $16.2 million in Q3 2024 [15]. - Non-interest income rose to $7.2 million in Q3 2025, compared to $5.4 million in Q2 2025 and $3.9 million in Q3 2024 [14]. - Net interest income for Q3 2025 was $13.0 million, up 4.9% from Q2 2025 and 6.0% from Q3 2024 [8][10]. Loan and Asset Growth - SBA lending and commercial banking loan originations reached $242.1 million in Q3 2025, marking a record month in September with $92 million [37]. - Total loans, net of deferred fees and costs, increased to $940.6 million as of September 30, 2025, up from $871.6 million in Q2 2025 and $781.0 million in Q3 2024 [21]. - Total assets increased by 5.6% to $1.3 billion from Q2 2025 and by 24.2% from Q3 2024 [20]. Expense Management - Non-interest expenses for Q3 2025 were $12.3 million, up from $10.4 million in Q2 2025 and $9.1 million in Q3 2024, primarily due to unusual expenses [16]. - The efficiency ratio was 61.1% for Q3 2025, compared to 58.5% in Q2 2025 and 56.0% in Q3 2024 [16]. Credit Quality and Provisions - The provision for credit losses on loans was $2.2 million for Q3 2025, an increase from $1.1 million in Q2 2025 and $570 thousand in Q3 2024 [13][28]. - Non-performing assets totaled $37.5 million as of September 30, 2025, an increase from $18.4 million in Q2 2025 and $5.4 million in Q3 2024 [31]. Strategic Initiatives - The company is enhancing its gaming payments operations and has launched a new digital credit card application process to prevent fraud [38][39]. - The onboarding of BoltBetz with Distill Taverns and Terribles Gaming is expected to drive growth in the gaming sector [40].

Financial Performance - The company's net income for 3Q25 was $106.0 million, resulting in diluted earnings per share of $1.54[22] - The company's return on average assets (ROA) was 1.56% for 3Q25[22] - The company's return on average tangible common equity (ROTCE) was 14.57% for 3Q25[22] - The company's net interest margin (NIM) improved by 3 basis points to 3.80% in 3Q25[22] - The company's efficiency ratio improved to 49.19% in 3Q25[22] Balance Sheet and Capital - The company's tangible book value (TBV) grew by $1.58 per share to $42.90 at the end of 3Q25, representing an annualized growth rate of 15.2%[22] - The company's CET1 ratio was 13.2% at the end of 3Q25[13] - Noninterest-bearing deposits remained strong, representing 30.4% of total deposits as of September 30, 2025[22] Loan Portfolio and Credit Quality - The company's loan portfolio totaled $21.3 billion in 3Q25[56] - The company's allowance for credit losses (ACL) on loans was 1.62% of total loans in 3Q25[13] - The company's net charge-offs were stable at 0.14% annualized in 3Q25[22] Market Position and Growth - The company's Southeast markets are projected to grow approximately 1.7x the national average over the next five years[13]

Financial Data and Key Metrics Changes - Net income for the third quarter totaled $10.1 million or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest income increased for the fifth consecutive quarter, rising by $1.9 million to $29.3 million, driven by higher interest income of $3.2 million [6][8] - Net interest margin expanded by six basis points to 2.98%, marking a 30 basis point increase over the last four quarters [3][7] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68 million or 8% on an annualized basis, primarily from the in-house mortgage origination business [4] - Third quarter loan originations totaled $188 million at a blended yield of 6.70%, which is 67 basis points above the prior quarter's blended loan portfolio yield [4][9] - Non-performing loans decreased by $11.3 million or 20% to $44.5 million, attributed to charge-offs and upgrades [9][10] Market Data and Key Metrics Changes - Total deposits increased by $178 million from the end of the second quarter to $3.4 billion, with growth across all deposit categories [11] - The allowance for loan losses to total loans held for investment ratio stood at 1.36% as of September 30, indicating appropriate risk coverage [11] Company Strategy and Development Direction - The company is focused on addressing remaining credit issues and improving asset quality, with a goal of resolving significant non-accrual loans [20][21] - There is an ongoing effort to shift the loan portfolio mix towards commercial and industrial (C&I) loans while maintaining strong growth in residential mortgages [34][36] - The company is considering opportunities for share buybacks and refinancing sub-debt, while also investing in business growth and technology [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core earnings growth and lower credit costs, viewing these as positive signs for the future [3] - The competitive landscape for liquidity remains challenging, impacting the ability to reduce funding costs significantly [7][30] - The company anticipates continued loan growth, although Q4 may see some seasonal moderation [34] Other Important Information - The tangible book value per share increased to $25.89, reflecting a 12% annualized increase [11] - The company repurchased 660,000 shares, or 4% of shares outstanding, during the third quarter [11] Q&A Session Summary Question: Asset quality improvement metrics - Management acknowledged progress in asset quality but indicated that more work is needed, particularly in resolving non-accrual loans [18][19] Question: Capital and share repurchase authorization - Approximately $4 million remains in the current share repurchase program, with management open to future buybacks depending on stock price and market conditions [22][23] Question: Deposit beta and interest rates - Management noted that deposit beta has slowed due to fierce competition for liquidity, and they expect to capitalize on upcoming maturing time deposits [28][30] Question: Loan growth and portfolio mix - The pipeline remains healthy, with a focus on residential mortgages and a gradual shift towards C&I loans, although government shutdowns may impact SBA loan funding [35][36] Question: Interest recovery and FHLB advances - No significant interest recovery was noted in Q3, and FHLB advances were replaced with brokered deposits at higher rates [42][43]

Financial Data and Key Metrics Changes - Net income for the third quarter totaled $10.1 million or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest income increased for the fifth consecutive quarter, rising by $1.9 million to $29.3 million, driven by higher interest income of $3.2 million [6][8] - Net interest margin expanded by six basis points to 2.98%, marking a 30 basis point increase over the last four quarters [3][7] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68 million or 8% on an annualized basis, primarily from the in-house mortgage origination business [4] - Third quarter loan originations totaled $188 million at a blended yield of 6.70%, which is 67 basis points above the prior quarter's blended loan portfolio yield [4][9] - Non-performing loans decreased by $11.3 million or 20% to $44.5 million, attributed to charge-offs and upgrades [9][10] Market Data and Key Metrics Changes - Total deposits increased by $178 million from the end of the second quarter to $3.4 billion, with growth across all deposit categories [11] - The allowance for loan losses to total loans held for investment ratio stood at 1.36% as of September 30, indicating appropriate risk coverage [11] Company Strategy and Development Direction - The company is focused on addressing remaining credit issues and improving asset quality, with a goal of resolving significant non-accrual loans [20][21] - There is an ongoing effort to deepen relationships in existing markets and explore opportunities for sub-debt refinancing next year [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding core earnings growth and lower credit costs, viewing these as positive signs for the future [3] - The company remains vigilant in addressing credit issues and is focused on maintaining loan growth while managing operating costs [20][21] Other Important Information - The tangible book value per share increased to $25.89, reflecting a 12% annualized increase [11] - The company repurchased 660,000 shares, or 4% of shares outstanding, during the third quarter [11] Q&A Session Summary Question: Asset quality improvement and future expectations - Management acknowledged progress in asset quality but indicated that more work is needed, with a focus on resolving significant non-accrual loans [18][20] Question: Capital and share repurchase authorization - The company has about $4 million left in the current share repurchase program and is considering future buyback opportunities [22][23] Question: Deposit beta and interest rates - Management noted that deposit beta has slowed due to fierce competition for liquidity, and they expect to capitalize on upcoming rate cuts [28][30] Question: Loan growth and portfolio mix - The pipeline remains healthy, with a focus on residential mortgage and commercial loans, although seasonality may moderate growth in Q4 [34][35] Question: Interest recovery and FHLB advances - There was no significant interest recovery in Q3, and FHLB advances were replaced with brokered deposits at a higher rate [42][43] Question: Margin expansion and future rate cuts - Management believes they can continue to expand margins despite potential rate cuts, driven by loan growth and origination yields [48][50]

Financial Performance - Net income for Q4 FY25 was $25215 million, and year-to-date net income reached $834 million[4] - Net interest margin stood at 510% for Q4 FY25 and 482% year-to-date[4] - Return on equity was 2073% and return on assets was 238% for Q4 FY25[4] - Basic earnings per share (EPS) for Q4 FY25 were $306 ($300 diluted), and year-to-date EPS were $1031 ($1008 diluted)[4] Loan Portfolio - Total loan volume for Q4 FY25 was $3626 million, with a year-to-date volume of $21 billion[4] - National Lending invested $417 million on $444 million of UPB in Q4 FY25, and $8632 million on $9461 million of UPB year-to-date[4] - SBA loans originated in Q4 FY25 amounted to $1043 million, with $1076 million sold, resulting in a gain on sale of $82 million[4] - Purchased loans constitute the largest portion of the National Lending portfolio, with a total balance of $2375157 million and an average LTV of 50%[7] Deposit Portfolio - The grand total of deposits reached $3375600 million as of June 30, 2025, with a weighted average rate (WAR) of 373%[48] - Brokered deposits make up 47% of the deposit mix, totaling $1595857 million with a WAR of 411%[48]

Financial Performance - The company's net income for 2Q25 was $109834 thousand, a 25% increase compared to $87935 thousand in 1Q25 and a 21% increase compared to $90785 thousand in 2Q24[19] - Return on average assets (ROA) was 165% in 2Q25, up from 136% in 1Q25 and 141% in 2Q24[19] - Return on average tangible common equity (ROTCE) reached 1582% in 2Q25[18] - Tangible book value per share grew by $154 to $4132 at the end of June 2025, representing a 155% annualized growth[18] Balance Sheet and Capital - The CET1 ratio was 130%[9] - The TCE ratio stood at 1109%, compared to 972% a year prior[18] - Noninterest-bearing deposits remained strong, accounting for 310% of total deposits as of June 30, 2025[18] Revenue and Expenses - Net interest margin (TE) expanded by 4 bps to 377%[18] - Total revenue increased by $149 million, or 209% annualized, from 1Q25[18] - The efficiency ratio improved to 5163%[18] - Mortgage banking activity contributed 13% of total revenue in 2Q25[34] Loan Portfolio and Credit Quality - Loan balances increased by $335 million, or 65% annualized, during 2Q25[57] - The allowance for credit losses (ACL) on loans was 162% of total loans[53] - Net charge-offs totaled $71 million, or 014% annualized, in 2Q25[68]

Core Financial Performance - The company reported net income of $6.2 million, or $0.88 per diluted share, for the quarter ended June 30, 2025, compared to $4.1 million, or $0.60 per diluted share, for the same quarter in 2024, marking a significant year-over-year increase [1] - For the nine months ended June 30, 2025, net income was $17.9 million, or $2.57 per diluted share, compared to $9.9 million, or $1.45 per diluted share, for the same period in 2024 [9] Revenue and Income Analysis - Net interest income increased by $2.2 million, or 15.1%, to $16.7 million for the quarter ended June 30, 2025, driven by an increase in interest income and a decrease in interest expense [3] - Noninterest income rose by $1.3 million for the quarter ended June 30, 2025, primarily due to gains from sales of SBA loans and home equity lines of credit [5] Expense Management - Noninterest expense increased by $1.3 million for the quarter ended June 30, 2025, mainly due to higher compensation and benefits related to stronger company performance [6] - The efficiency ratio improved to 64.45% for the quarter ended June 30, 2025, compared to 70.11% for the same period in 2024, indicating better cost management [30] Asset Quality and Credit Losses - The company recognized a provision for credit losses of $347,000 for loans and $77,000 for unfunded lending commitments for the quarter ended June 30, 2025, compared to higher provisions in the same period of 2024 [4] - Nonperforming loans decreased from $16.9 million at September 30, 2024, to $15.2 million at June 30, 2025, reflecting improved asset quality [4] Capital and Equity Position - Total stockholders' equity increased by $6.7 million, from $177.1 million at September 30, 2024, to $183.8 million at June 30, 2025, primarily due to retained earnings [18] - The company maintained a "well-capitalized" status under applicable regulatory capital guidelines as of June 30, 2025 [18] Strategic Outlook - The company is optimistic about continued profitability and growth in the SBA Lending segment, with a robust lending pipeline for the fourth fiscal quarter [2] - Focus areas include customer deposit growth, selective loan growth opportunities, and prudent capital and liquidity management [2]