Hanmi Financial recorded fourth quarter net income of $21.2 million, or $0.70 per diluted share, falling short of the Zacks Consensus Estimate of $0.71. This result compares with net income of $17.7 million, or $0.58 per diluted share, in the same period a year earlier, reflecting year-over-year earnings growth of 21%. Return on average assets was 1.07%, down from 1.12% in the prior quarter, while return on average equity slipped to 10.14% from 10.69% in Q3. Analysts had projected modest sequential improvement; instead, noninterest income declined by $1.6 million due primarily to lower bank-owned life insurance income, and noninterest expense rose by $1.8 million, driven by higher salaries and professional fees.

Net interest income increased by $1.8 million, or 2.9%, to $62.9 million, propelled by a 20 basis-point decline in the average rate on interest-bearing deposits. Interest income on earning assets remained essentially flat at $105.1 million, while interest expense fell by $1.9 million to $42.2 million. The taxable-equivalent net interest margin widened six basis points sequentially to 3.28%, marking the fifth straight quarter of margin expansion. Lower funding costs more than offset a nine-basis-point decrease in loan yields to 5.94%, as average loan balances rose 2.4% to $6.46 billion.

Total loans receivable grew by $35 million, or 0.5%, quarter-over-quarter to $6.56 billion, with loan origination of $374.8 million at a weighted average rate of 6.90% outpacing payoffs. Deposits moderated 1.3% to $6.68 billion, while noninterest-bearing demand deposits held steady at roughly 30.2% of total funding, underscoring customer stability. Asset quality metrics improved: nonperforming assets to total assets tightened one basis point to 0.26%, and nonperforming loans to total loans declined two basis points to 0.28%. Credit loss provision was $1.9 million, down from $2.1 million in Q3.

Hanmi’s tangible common equity to tangible assets ratio strengthened 19 basis points to 9.99%, well above regulatory minimums. The company returned $10.1 million of capital to shareholders in Q4, comprised of $8.1 million in dividends and $2.0 million in share repurchases. For full year 2025, Hanmi delivered net income of $76.1 million, up 22% year-over-year, and grew tangible book value per share by $2.39 to $26.27. Management reaffirmed guidance for continued net interest margin expansion, moderate loan and deposit growth, disciplined expense management and stable asset quality in 2026.