Hanmi Financial Corporation reported Q4 2025 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 diluted share) but up 19.9% year-over-year from $17.7 million ($0.58 per share). Return on average assets was 1.07%, compared with 1.12% in Q3, while return on average equity stood at 10.14%, versus 10.69% in the previous quarter. Full-year 2025 net income rose 22% to $76.1 million, or $2.51 per share, up from $62.2 million ($2.05 per share) in 2024.

Net interest income in Q4 increased 2.9% sequentially to $62.9 million, driven by a 20-basis-point decline in the average rate on interest-bearing deposits. Interest-earning assets generated $105.1 million in income, offset by $42.2 million in interest expense. The taxable-equivalent net interest margin expanded six basis points to 3.28%, reflecting a 2% rise in average loan balances to $6.46 billion, despite a nine-basis-point dip in loan yields to 5.94%. On a full-year basis, net interest margin widened 37 basis points to 3.15%, contributing to a 16.5% increase in net interest income to $236.2 million.

Hanmi maintained strong asset quality, with nonperforming loans at 0.28% of total loans (down two basis points sequentially) and nonperforming assets at 0.26% of total assets. Credit loss expense in Q4 was $1.9 million, compared with $2.1 million in Q3. Total loans increased 0.5% sequentially to $6.56 billion, supported by $374.8 million of loan production at a weighted average rate of 6.90%. Deposits were $6.68 billion, a 1.3% decline from Q3, although noninterest-bearing demand deposits held steady at roughly 30% of the mix. Tangible common equity to tangible assets improved to 9.99%, up 19 basis points from the prior quarter.

CEO Bonnie Lee highlighted robust full-year earnings growth of 22% driven by net interest margin expansion, disciplined expense control and a relationship-driven banking model. Loan production climbed 36% for the year, with commercial and industrial loans up 25% and residential mortgages up 10%. Lee noted ample liquidity and strong capital ratios as the company positions for continued loan and deposit growth, further margin improvement and stable asset quality, targeting consistent shareholder value creation through disciplined credit management and strategic investments in talent and technology.