Hanmi Financial reported fourth quarter 2025 net income of $21.2 million, or $0.70 per diluted share, down 3.7% from $22.1 million, or $0.73 per share, in the third quarter. For the full year, net income rose 22% to $76.1 million, or $2.51 per diluted share, compared with $62.2 million, or $2.05 per share, in 2024. Return on average assets for Q4 was 1.07% and return on average equity was 10.14%, modestly lower than the prior quarter’s 1.12% and 10.69%, respectively, but fully year 2025 metrics improved to 0.98% ROA and 9.32% ROE versus 0.83% and 7.97% a year earlier.

Net interest income for the quarter increased 2.9% sequentially to $62.9 million, driven by a 20 basis-point decline in the average cost of interest-bearing deposits. Interest income on earning assets held relatively flat at $105.1 million, while interest expense fell by $1.9 million. The average loan balance grew 2.4% to $6.46 billion even as loan yields dipped nine basis points to 5.94%. These dynamics lifted the taxable-equivalent net interest margin by six basis points to 3.28%. For the year, net interest income climbed 16.5% to $236.2 million and net interest margin expanded 37 basis points to 3.15%.

Hanmi’s asset quality remained strong with nonperforming loans at 0.28% of total loans, improving two basis points from Q3, and nonperforming assets at 0.26% of total assets. Credit loss expense declined to $1.9 million from $2.1 million in the prior quarter. Loans receivable edged up 0.5% sequentially to $6.56 billion, while total deposits were $6.68 billion, down 1.3% quarter-over-quarter, with noninterest-bearing demand deposits comprising 30.2%. Tangible common equity to tangible assets stood at 9.99%, and the company returned $10.1 million of capital to shareholders via $8.1 million in dividends and $2.0 million in share repurchases.

Bonnie Lee, President and CEO, highlighted 22% annual earnings growth driven by net interest margin expansion, 36% loan production growth, and disciplined expense and credit management. She noted that C&I and residential mortgage loans increased 25% and 10% year-over-year, respectively, and emphasized the stability of the deposit base. Looking ahead, Lee expects further net interest margin expansion, solid loan and deposit growth, well-managed expenses, and stable asset quality to underpin consistent performance and long-term shareholder value in 2026.