Hanmi Financial (HAFC) Q4 2025 earnings summary

Executive summary

• Net income for Q4 2025 was $21.2 million ($0.70 per diluted share), down 3.7% sequentially but up 20% year-over-year; full-year net income rose 22% to $76.1 million ($2.51 per diluted share), driven by net interest margin expansion and loan growth.

• Return on average assets for Q4 was 1.07% and return on average equity was 10.14%; full-year 2025 ROAA was 0.98% and ROAE was 9.32%, both higher than 2024.

• Net interest income rose 2.9% sequentially to $62.9 million in Q4, driven by lower deposit costs and a 2.4% increase in average loan balances.

• Noninterest income for Q4 was $8.3 million, down 16% sequentially but up 12.8% year-over-year; noninterest expense for Q4 was $39.1 million, up 4.7% sequentially and 13.3% year-over-year.

• Non-interest-bearing deposits remained at about 30% of total, supporting funding stability and customer loyalty.

Financial highlights

• Full-year 2025 net income reached $76.1 million ($2.51 per diluted share), up 22% year-over-year.

• Net interest margin (taxable equivalent) for Q4 was 3.28%, up 6 bps from Q3 and up 37 bps year-over-year; full-year NIM was 3.15%, up from 2.78% in 2024.

• Loans receivable reached $6.56 billion, up 0.5% from Q3 2025; loan production was $374.8 million at a weighted average rate of 6.90%.

• Deposits totaled $6.68 billion, down 1.3% sequentially, with noninterest-bearing demand deposits stable at 30.2% of total deposits.

• Pre-provision net revenue increased 31.5% year-over-year.

Outlook and guidance

• Management anticipates continued loan and deposit growth, further net interest margin expansion, well-managed expenses, and stable asset quality in 2026.

• Focused on growing deposits, especially non-interest-bearing, and maintaining a stable funding mix.

• Disciplined expense management and prudent credit risk practices remain priorities.

• The company remains well capitalized, exceeding regulatory minimums, and expects to maintain a stable capital position.

• Management highlighted ample liquidity and strong capital, with a focus on prudent capital management and continued shareholder returns through dividends and share repurchases.