Hanmi Financial reported fourth quarter net income of $21.2 million, or $0.70 per diluted share, down 3.7% from the prior quarter’s $22.1 million ($0.73 per share). The results fell short of consensus EPS estimates of $0.71. Net interest income rose 2.9% sequentially to $62.9 million, buoyed by a 20 basis-point decline in deposit funding costs, but this was offset by a 3.7% drop in noninterest income to $1.6 million. Noninterest expense climbed $1.8 million over Q3, driven by higher salaries and professional fees, leaving the efficiency ratio at 54.95%, up from 52.65%.

Hanmi’s taxable-equivalent net interest margin expanded six basis points quarter-over-quarter to 3.28%, reflecting a lower average rate on interest-bearing deposits (3.36%) and a 2.4% increase in average loans to $6.46 billion. Loan yields dipped nine basis points to 5.94%, while interest expense on deposits fell by $1.9 million. Total deposits ended the quarter at $6.68 billion, down 1.3% from Q3, but noninterest-bearing demand deposits remained a stable 30.2% of the mix.

Quarterly loan production reached $374.8 million at a 6.90% weighted average rate, supporting a 0.5% increase in loans receivable to $6.56 billion. Credit quality stayed strong: nonperforming loans contracted two basis points to 0.28% of total loans and nonperforming assets to total assets improved one basis point to 0.26%. Credit loss expense declined to $1.9 million from $2.1 million in Q3.

For full-year 2025, net income grew 22% to $76.1 million ($2.51 per diluted share) versus $62.2 million ($2.05) in 2024. Return on average assets improved to 0.98% and return on average equity to 9.32%, up from 0.83% and 7.97%, respectively, a year earlier. Tangible common equity to tangible assets stood at 9.99%, and the company returned $10.1 million to shareholders via share repurchases and dividends. Management highlighted continued net interest margin expansion, healthy loan growth, and disciplined expense and credit management as drivers for 2026 outlook.