After an 8.4% decline over the past four weeks, Hanmi Financial’s relative strength index has dipped below 30, signaling oversold conditions that often precede a rebound. Trading volume over this period averaged 150% of its 30-day norm, suggesting heavy distribution may have exhausted sellers. Meanwhile, eight of nine Wall Street analysts covering the stock have raised 2026 earnings estimates in the past month, lifting the consensus per-share forecast by 6% to $2.75. The combination of technical oversold readings and upward estimate revisions could provide the catalyst for a trend reversal.

The company’s board approved a 4% increase in the quarterly cash dividend to $0.28 per share, marking the fifth consecutive annual raise and reflecting confidence in its capital generation. Hanmi also expanded its share repurchase authorization by 1.5 million shares, bringing the total buyback capacity to approximately 2.3 million shares. At the current dividend rate, Hanmi commits over $9 million annually in payouts, while the enlarged repurchase program could absorb up to $20 million, or roughly 3% of its current market capitalization.

In the quarter ended December 31, 2025, Hanmi reported net income of $21.2 million, or $0.70 per diluted share, versus the Zacks Consensus Estimate of $0.71. Although short of estimates, results represented a 21.6% gain in earnings per share from $0.58 in Q4 2024. Net interest income rose 17.6% year-over-year to $62.9 million, driven by a net interest margin expansion of 37 basis points to 3.28%, while noninterest income fell 15% to $1.6 million amid lower bank-owned life insurance gains.

Total loans receivable grew to $6.56 billion, up 4.9% from a year ago, with commercial and industrial lending up 25% and residential mortgage production increasing 10% year-over-year. Deposits stood at $6.68 billion, with noninterest-bearing demand deposits representing 30.2% of the total, underscoring customer stickiness. Asset quality metrics improved, with nonperforming loans to total loans at 0.28%, down two basis points sequentially, and credit loss expense declining to $1.9 million from $2.1 million in the prior quarter. Return on average assets was 1.07% and return on average equity 10.14% for Q4.

For the full year, net income climbed 22.4% to $76.1 million, or $2.51 per diluted share, up from $62.2 million ($2.05) in 2024. Net interest income increased 16.5% to $236.2 million, with the net interest margin expanding by 37 basis points. Average loans grew 3.1% to $6.30 billion, while average deposits rose 4.1% to $6.57 billion. Tangible common equity to tangible assets improved to 9.99%, and the efficiency ratio tightened to 54.95%, reflecting disciplined expense management and strong core earnings growth.