Hanmi Reports 2025 Fourth Quarter and Full Year Results

Rhea-AI Summary

Hanmi Financial (NASDAQ: HAFC) reported fourth-quarter 2025 net income of $21.2M ($0.70 diluted) and full-year 2025 net income of $76.1M ($2.51 diluted), a 22% increase versus 2024. Return on average assets for Q4 was 1.07% and return on average equity was 10.14%. Net interest income for Q4 was $62.9M (up 2.9% QoQ) and full-year net interest income was $236.2M (up 16.5% YoY). Net interest margin (taxable-equivalent) was 3.28% in Q4 and 3.15% for 2025. Loans receivable grew to $6.56B, loan production rose to $374.8M, and deposits were $6.68B with noninterest-bearing deposits at 30.2% of total. Credit loss expense was $14.4M for 2025, reflecting a $8.6M syndicated CRE charge-off in Q2.

Positive

• Net income +22% YoY to $76.1M for 2025
• Net interest income +16.5% YoY to $236.2M for 2025
• NIM expanded to 3.15% for 2025 (37 bps YoY benefit)
• Loans receivable at $6.56B, loan production $374.8M in Q4
• Noninterest-bearing deposits 30.2% of total deposits supports stability
• Tangible common equity to tangible assets 9.99% at Q4

Negative

• Credit loss expense rose to $14.4M in 2025 from $4.4M in 2024 (includes $8.6M CRE charge-off)
• Net income down 3.7% QoQ in Q4 to $21.2M
• Deposits declined 1.3% QoQ to $6.68B
• Efficiency ratio widened to 54.95% in Q4 from 52.65% in Q3

News Market Reaction – HAFC

-12.97% 1.5x vol

38 alerts

-12.97% News Effect

-9.8% Trough in 5 hr 6 min

-$121M Valuation Impact

$815M Market Cap

1.5x Rel. Volume

On the day this news was published, HAFC declined 12.97%, reflecting a significant negative market reaction. Argus tracked a trough of -9.8% from its starting point during tracking. Our momentum scanner triggered 38 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $121M from the company's valuation, bringing the market cap to $815M at that time. Trading volume was above average at 1.5x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 net income: $21.2M Q4 2025 EPS (diluted): $0.70 2025 net income: $76.1M +5 more

8 metrics

Q4 2025 net income $21.2M Fourth quarter 2025 net income vs. $22.1M in Q3 2025

Q4 2025 EPS (diluted) $0.70 Fourth quarter 2025 diluted EPS vs. $0.73 in Q3 2025

2025 net income $76.1M Full-year 2025 net income vs. $62.2M in 2024

2025 EPS (diluted) $2.51 Full-year 2025 diluted EPS vs. $2.05 in 2024

2025 ROAA 0.98% Return on average assets for 2025 vs. 0.83% in 2024

2025 ROAE 9.32% Return on average equity for 2025 vs. 7.97% in 2024

Loans receivable $6.56B Period-end loans receivable at Dec 31, 2025

Net interest margin 3.28% Q4 2025 net interest margin (taxable equivalent), up 6 bps vs. Q3 2025

Market Reality Check

Price: $25.39 Vol: Volume 213,935 vs 20-day ...

normal vol

$25.39 Last Close

Volume Volume 213,935 vs 20-day average 254,343 (relative volume 0.84) ahead of the report. normal

Technical Shares at $28.41, trading above the 200-day MA of $25.15 and about 5.9% below the 52-week high of $30.20.

Peers on Argus

HAFC was down 1.93% while peers were mixed: FSBC up 1.52%, GSBC down 0.67%, HBT ...

HAFC was down 1.93% while peers were mixed: FSBC up 1.52%, GSBC down 0.67%, HBT down 2.94%, TRST down 0.47%, and MCBS flat. This points to a stock-specific reaction rather than a broad regional bank move.

Historical Context

5 past events · Latest: Jan 13 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 13	Earnings call notice	Neutral	+1.0%	Announced Q4 2025 earnings release date and investor conference call details.
Oct 24	Cash dividend	Positive	+3.9%	Declared Q4 2025 cash dividend of $0.27 per share for common stockholders.
Oct 23	Industry recognition	Positive	+3.9%	American Banker honored an executive and team in its 2025 Most Powerful Women list.
Oct 21	Quarterly earnings	Positive	+1.4%	Reported Q3 2025 with higher net income, margin expansion, and stronger credit metrics.
Oct 07	Earnings call notice	Neutral	-1.0%	Announced Q3 2025 earnings release timing and related conference call logistics.

Pattern Detected

Recent earnings and dividend announcements have generally seen modest positive price reactions, suggesting investors have rewarded operational updates and capital returns.

Recent Company History

Over the past few months, Hanmi released several updates, including Q3 2025 results on Oct 21, 2025 that featured higher net income and margin expansion, plus a $0.27 quarterly dividend declared on Oct 24, 2025. Recognition in American Banker’s 2025 awards highlighted franchise strength. Conference call notices on Oct 7, 2025 and Jan 13, 2026 framed upcoming results. Today’s Q4 and full‑year 2025 report builds directly on that trajectory of improving profitability and capital returns.

Market Pulse Summary

The stock dropped -13.0% in the session following this news. A negative reaction despite higher full...

Analysis

The stock dropped -13.0% in the session following this news. A negative reaction despite higher full‑year profitability could fit a pattern where markets focus on quarterly noise, such as the Q4 net income step down to $21.2M or credit loss expense of $14.4M for 2025. Historically, earnings and dividend updates have often been met with modest gains, so a sharp decline would stand out. Investors would likely scrutinize asset quality trends, loan growth sustainability, and deposit dynamics when reassessing the move.

Key Terms

net interest margin, nonperforming loans, credit loss expense, tangible common equity, +4 more

8 terms

net interest margin financial

"This resulted in another quarter of net interest margin expansion..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

nonperforming loans financial

"our credit quality remains strong, with nonperforming loans representing 0.28% of total loans."

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

credit loss expense financial

"credit loss expense was $1.9 million, compared to $2.1 million in the prior quarter."

Credit loss expense is the amount a lender records on its income statement to cover loans or receivables it expects will not be repaid, like setting aside a cushion for unpaid IOUs. For investors it signals the health of a lender’s loan book and directly reduces reported profit and regulatory capital, so rising credit loss expense can indicate worsening borrower risk or a more conservative accounting stance.

tangible common equity financial

"Hanmi's capital position remained strong with a ratio of tangible common equity to tangible assets..."

Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.

basis points financial

"the average rate on interest-bearing deposits declined 20 basis points."

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

Form 8-K regulatory

"via a current report on Form 8-K on the website of the Securities and Exchange Commission..."

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

bank-owned life insurance financial

"primarily related to a decrease in income on bank owned life insurance."

Bank-owned life insurance (BOLI) is a life insurance policy that a bank purchases with itself as the beneficiary, typically on the lives of selected employees, so the bank receives the payout when a covered person dies. Investors care because these policies show up as assets on a bank’s balance sheet and generate tax-advantaged income and cash flow that can help offset employee benefit costs and smooth reported earnings—think of it as a low-profile savings vehicle that also provides a death benefit, which affects a bank’s reported profitability and risk profile.

SBA loans financial

"Gain on sale of SBA loans was $1.8 million for the fourth quarter of 2025..."

SBA loans are small-business loans that carry a guarantee from the U.S. Small Business Administration, meaning the government promises to cover part of the lender’s loss if the borrower can’t repay. For investors, these loans matter because they make credit more available and less risky for small companies, which can support business growth and local economic activity—similar to a safety net that encourages banks to lend where they might otherwise be cautious.

AI-generated analysis. Not financial advice.

LOS ANGELES, Jan. 27, 2026 (GLOBE NEWSWIRE) -- Hanmi Financial Corporation (NASDAQ: HAFC or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the fourth quarter of 2025 and full year.

Net income for the fourth quarter of 2025 was $21.2 million, or $0.70 per diluted share, compared with $22.1 million, or $0.73 per diluted share, for the third quarter of 2025. The return on average assets for the fourth quarter of 2025 was 1.07% and the return on average equity was 10.14%, compared with a return on average assets of 1.12% and a return on average equity of 10.69% for the third quarter of 2025.

For the full year of 2025, net income was $76.1 million, or $2.51 per diluted share, compared with $62.2 million, or $2.05 per diluted share, for 2024. The return on average assets for 2025 was 0.98% and the return on average equity was 9.32%, compared with a return on average assets and a return on average equity of 0.83% and 7.97%, respectively, for 2024.

CEO Commentary

“Hanmi delivered solid results in the fourth quarter, enabling us to finish 2025 with sustained momentum,” said Bonnie Lee, President and Chief Executive Officer. “We generated robust earnings growth of 22% for the year, driven by continued net interest margin expansion, healthy loan growth, and disciplined expense and credit management. These consistent results underscore the effectiveness of our relationship-driven banking model.”

“Throughout the year, we advanced several key initiatives that further enhanced our growth and diversification strategy. Investments in banking talent drove a 36% increase in loan production. The composition of our loan portfolio continues to evolve with C&I and residential mortgage loans increasing 25% and 10% for the year, respectively. Our noninterest bearing demand deposits represent 30% of total deposits, reinforcing the stability of our customer base and our credit quality remains strong, with nonperforming loans representing 0.28% of total loans.”

“We are excited about the opportunities ahead in 2026 and beyond and believe we are well positioned to continue delivering on our growth strategy. Our balance sheet is strong, with ample liquidity and excellent capital ratios. We anticipate solid loan and deposit growth, further net interest margin expansion, well managed expenses and stable asset quality to drive consistent performance and long-term value for our shareholders in the coming year,” concluded Lee.

Fourth Quarter 2025 Highlights:

• Net income was $21.2 million, or $0.70 per diluted share, down 3.7% from the third quarter, partially due to lower noninterest income of $1.6 million primarily related to a decrease in income on bank owned life insurance. Additionally, while noninterest expense increased $1.8 million due to higher salaries and professional fees, this was offset by an increase in net interest income of $1.8 million driven by lower cost of deposits.
• Net interest income continued to grow, increasing 2.9% from the prior quarter due to lower interest expense as the average rate on interest-bearing deposits declined 20 basis points. Although the yield on average loans declined by nine basis points, the average balance of loans increased 2%. This resulted in another quarter of net interest margin expansion (taxable equivalent) of six basis points to 3.28%.
• Return on average assets and return on average equity during the quarter were healthy at 1.07% and 10.14%, respectively.
• Asset quality remained strong as nonperforming assets to total assets was 0.26%, an improvement of one basis point from the prior quarter. Nonperforming loans to total loans was 0.28%, an improvement of two basis points from the prior quarter and credit loss expense was $1.9 million, compared to $2.1 million in the prior quarter.
• Loans receivable increased to $6.56 billion, up 0.5% from the end of the prior quarter. Loan production was $374.8 million, with a weighted average interest rate of 6.90% compared to the weighted average interest rate of 6.46% for payoffs.
• Deposits were $6.68 billion, down 1.3% from the prior quarter, however noninterest-bearing demand deposits, which demonstrate the stability of the customer base, represented 30.2% of total deposits.
• Hanmi's capital position remained strong with a ratio of tangible common equity to tangible assets¹ of 9.99% while the Company returned $10.1 million of capital to shareholders in the form of share repurchases and dividends ($2.0 million in share repurchases and $8.1 million of dividends).
  

For more information about Hanmi, please see the Q4 2025 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

Quarterly Highlights
(Dollars in thousands, except per share data)

	As of or for the Three Months Ended																				Amount Change
	Dec 31				Sep 30				Jun 30,				Mar 31,				Dec 31,				Q4-25				Q4-25
	2025				2025				2025				2025				2024				vs. Q3-25				vs. Q4-24
Net income	$	21,239			$	22,061			$	15,117			$	17,672			$	17,695			$	(822	)		$	3,544
Net income per diluted common share	$	0.70			$	0.73			$	0.50			$	0.58			$	0.58			$	(0.03	)		$	0.12
Assets	$	7,869,185			$	7,856,731			$	7,862,363			$	7,729,035			$	7,677,925			$	12,454			$	191,260
Loans receivable	$	6,563,367			$	6,528,259			$	6,305,957			$	6,282,189			$	6,251,377			$	35,108			$	311,990
Deposits	$	6,677,650			$	6,766,639			$	6,729,122			$	6,619,475			$	6,435,776			$	(88,989	)		$	241,874
Return on average assets		1.07	%			1.12	%			0.79	%			0.94	%			0.93	%			-0.05				0.14
Return on average stockholders' equity		10.14	%			10.69	%			7.48	%			8.92	%			8.89	%			-0.55				1.25
Net interest margin		3.28	%			3.22	%			3.07	%			3.02	%			2.91	%			0.06				0.37
Efficiency ratio (1)		54.95	%			52.65	%			55.74	%			55.69	%			56.79	%			2.30				-1.84
Tangible common equity to tangible assets (2)		9.99	%			9.80	%			9.58	%			9.59	%			9.41	%			0.19				0.58
Tangible common equity per common share (2)	$	26.27			$	25.64			$	24.91			$	24.49			$	23.88				0.63				2.39
(1)   Noninterest expense divided by net interest income plus noninterest income.
(2)   Refer to "Non-GAAP Financial Measures" for further details.

_____________________
¹ See Non-GAAP Financial Measures provided at the end of this news release.

Results of Operations 
Net interest income for the fourth quarter increased $1.8 million, or 2.9%, to $62.9 million from $61.1 million for the third quarter, principally because of lower interest expense on interest-bearing deposits. Interest income on interest-earning assets was $105.1 million for the fourth quarter, down $0.1 million from the third quarter. Interest expense on interest-bearing liabilities, however, declined $1.9 million from the previous quarter to $42.2 million because of a 20 basis point decrease in the average rate on interest-bearing deposits.

The average yield on loans for the fourth quarter was 5.94%, down nine basis points from the previous quarter; however, the average balance of loans increased 2.4% to $6.46 billion. The average rate on interest-bearing deposits was 3.36%, down 20 basis points from the third quarter as the average balance of interest-bearing deposits remained relatively unchanged with an increase of 0.2% to $4.71 billion.

For the fourth quarter, net interest margin (taxable-equivalent) was 3.28%, up six basis points from the third quarter. Lower yields on securities and interest-bearing deposits at other banks contributed to a six basis point decline in net interest margin while the improvement in the average rate on interest-bearing liabilities provided a 12 basis point benefit. Net interest margin also benefited by approximately two basis points from an interest-recovery on a previously charged-off loan and loans returning to accrual status, while third quarter net interest margin benefited three basis points from similar activity.

On a full-year basis, net interest income in 2025 was $236.2 million, compared with $202.8 million for 2024, an increase of 16.5%, or $33.4 million. The increase reflects the benefit of lower market interest rates on interest-bearing deposits as well as growth in the average balance of loans. The average rate on interest-bearing deposits for 2025 was 3.56%, 60 basis points lower than the previous year, while the average balance increased 5.5% to $4.63 billion. The average balance of deposits increased 4.1% to $6.57 billion. Average loan yields for 2025, however, were 5.96%, and were not meaningfully affected by the changes in market interest rates. Average loans increased 3.1% to $6.30 billion.

Net interest margin (taxable-equivalent) for 2025 was 3.15% compared with 2.78% for 2024. The 37 basis point increase in the net interest margin primarily reflected the 35 basis point benefit of lower average rates on interest-bearing liabilities.

	For the Three Months Ended (in thousands)																				Percentage Change
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Q4-25				Q4-25
Net Interest Income	2025				2025				2025				2025				2024				vs. Q3-25				vs. Q4-24
Interest and fees on loans receivable(1)	$	96,592			$	95,691			$	92,589			$	90,887			$	91,545				0.9	%			5.5	%
Interest on securities		6,323				6,592				6,261				6,169				5,866				-4.1	%			7.8	%
Dividends on FHLB stock		361				357				354				360				360				1.1	%			0.3	%
Interest on deposits in other banks		1,837				2,586				2,129				1,841				2,342				-29.0	%			-21.6	%
Total interest and dividend income	$	105,113			$	105,226			$	101,333			$	99,257			$	100,113				-0.1	%			5.0	%
Interest on deposits		39,978				42,244				41,924				40,559				43,406				-5.4	%			-7.9	%
Interest on borrowings		695				324				684				2,024				1,634				114.5	%			-57.5	%
Interest on subordinated debentures		1,561				1,579				1,586				1,582				1,624				-1.1	%			-3.9	%
Total interest expense		42,234				44,147				44,194				44,165				46,664				-4.3	%			-9.5	%
Net interest income	$	62,879			$	61,079			$	57,139			$	55,092			$	53,449				2.9	%			17.6	%
(1)   Includes loans held for sale.

	For the Three Months Ended (in thousands)																				Percentage Change
Average Earning Assets and Interest-bearing Liabilities	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Q4-25				Q4-25
	2025				2025				2025				2025				2024				vs. Q3-25				vs. Q4-24
Loans receivable (1)	$	6,456,239			$	6,304,435			$	6,257,741			$	6,189,531			$	6,103,264				2.4	%			5.8	%
Securities		955,811				985,888				993,975				1,001,499				998,313				-3.1	%			-4.3	%
FHLB stock		16,385				16,385				16,385				16,385				16,385				0.0	%			0.0	%
Interest-bearing deposits in other banks		191,731				239,993				200,266				176,028				204,408				-20.1	%			-6.2	%
Average interest-earning assets	$	7,620,166			$	7,546,701			$	7,468,367			$	7,383,443			$	7,322,370				1.0	%			4.1	%
Demand: interest-bearing	$	77,297			$	86,839			$	81,308			$	79,369			$	79,784				-11.0	%			-3.1	%
Money market and savings		2,130,616				2,122,967				2,109,221				2,037,224				1,934,540				0.4	%			10.1	%
Time deposits		2,506,582				2,494,285				2,434,659				2,345,346				2,346,363				0.5	%			6.8	%
Average interest-bearing deposits		4,714,495				4,704,091				4,625,188				4,461,939				4,360,687				0.2	%			8.1	%
Borrowings		64,565				27,772				60,134				179,444				141,604				132.5	%			-54.4	%
Subordinated debentures		130,385				130,766				130,880				130,718				130,567				-0.3	%			-0.1	%
Average interest-bearing liabilities	$	4,909,445			$	4,862,629			$	4,816,202			$	4,772,101			$	4,632,858				1.0	%			6.0	%
Average Noninterest Bearing Deposits
Demand deposits - noninterest bearing	$	1,969,908			$	1,960,331			$	1,934,985			$	1,895,953			$	1,967,789				0.5	%			0.1	%
(1)   Includes loans held for sale.

	For the Three Months Ended																				Yield/Rate Change
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Q4-25				Q4-25
Average Yields and Rates	2025				2025				2025				2025				2024				vs. Q3-25				vs. Q4-24
Loans receivable(1)		5.94	%			6.03	%			5.93	%			5.95	%			5.97	%			-0.09				-0.03
Securities (2)		2.67	%			2.70	%			2.55	%			2.49	%			2.38	%			-0.03				0.29
FHLB stock		8.75	%			8.65	%			8.65	%			8.92	%			8.75	%			0.10				0.00
Interest-bearing deposits in other banks		3.80	%			4.27	%			4.26	%			4.24	%			4.56	%			-0.47				-0.76
Interest-earning assets		5.48	%			5.54	%			5.44	%			5.45	%			5.45	%			-0.06				0.03
Interest-bearing deposits		3.36	%			3.56	%			3.64	%			3.69	%			3.96	%			-0.20				-0.60
Borrowings		4.27	%			4.63	%			4.58	%			4.57	%			4.59	%			-0.36				-0.32
Subordinated debentures		4.79	%			4.83	%			4.84	%			4.84	%			4.97	%			-0.04				-0.18
Interest-bearing liabilities		3.41	%			3.60	%			3.68	%			3.75	%			4.01	%			-0.19				-0.60
Net interest margin (taxable equivalent basis)		3.28	%			3.22	%			3.07	%			3.02	%			2.91	%			0.06				0.37
Cost of deposits		2.37	%			2.51	%			2.56	%			2.59	%			2.73	%			-0.14				-0.36
(1)   Includes loans held for sale.
(2)   Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Credit loss expense for the fourth quarter was $1.9 million, compared with $2.1 million for the third quarter of 2025. Fourth quarter credit loss expense included $1.7 million for loan losses and $0.2 million for off-balance sheet items. Third quarter credit loss expense of $2.1 million included a $2.5 million credit loss expense for loan losses and a $0.4 million credit loss recovery for off-balance sheet items.

Credit loss expense was $14.4 million for 2025, compared with $4.4 million for 2024. The credit loss expense for 2025 included a $14.2 million credit loss expense for loan losses and a $0.2 million credit loss recovery for off-balance sheet items. 2024 credit loss expense included a $4.8 million credit loss expense for loans and a $0.4 million credit loss recovery for off-balance sheet items. The increase for 2025 primarily reflects an $8.6 million charge-off of a syndicated commercial real estate office loan during the second quarter of 2025.

Noninterest income was $8.3 million for the fourth quarter, down $1.6 million, or 16.0%, from the third quarter. The decrease was primarily due to the absence of $0.9 million of death benefit claims from bank-owned life insurance policies and a $0.6 million decline in gain on the sale of residential mortgage loans. Gain on sale of SBA loans was $1.8 million for the fourth quarter of 2025, compared with $1.9 million for the third quarter of 2025. The volume of SBA loans sold for the fourth quarter decreased to $29.9 million from $32.6 million for the third quarter of 2025, while trade premiums were 7.40% for the fourth quarter of 2025 compared with 6.95% for the third quarter.

Noninterest income was $34.0 million for the full year of 2025, an increase of $2.4 million, or 7.6%, from $31.6 million for 2024. The increase was primarily due to a $1.7 million increase in gain on the sale of SBA loans, a $1.0 million increase in bank-owned life insurance income from death benefit claims, and a $0.8 million increase in trade finance and other service charges and fees. These items were partially offset by the absence of the $0.9 million gain on sale of a bank branch in 2024. The volume of SBA loans sold for 2025 increased to $130.0 million from $93.7 million for 2024, while trade premiums decreased to 7.45% for 2025, from 8.18% for 2024.

	For the Three Months Ended (in thousands)																				Percentage Change
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Q4-25				Q4-25
Noninterest Income	2025				2025				2025				2025				2024				vs. Q3-25				vs. Q4-24
Service charges on deposit accounts	$	2,196			$	2,160			$	2,169			$	2,217			$	2,192				1.7	%			0.2	%
Trade finance and other service charges and fees		1,735				1,551				1,461				1,396				1,364				11.9	%			27.2	%
Servicing income		924				924				754				732				668				0.0	%			38.3	%
Bank-owned life insurance income		315				1,259				708				309				316				-75.0	%			-0.3	%
All other operating income		758				973				819				897				1,037				-22.1	%			-26.9	%
Service charges, fees & other		5,928				6,867				5,911				5,551				5,577				-13.7	%			6.3	%
Gain on sale of SBA loans		1,790				1,857				2,160				2,000				1,443				-3.6	%			24.0	%
Gain on sale of residential mortgage loans		581				1,156				-				175				337				-49.7	%			72.4	%
Total noninterest income	$	8,299			$	9,880			$	8,071			$	7,726			$	7,357				-16.0	%			12.8	%

Noninterest expense for the fourth quarter, before other-real-estate-owned and repossessed personal property expenses, increased 3.5% to $38.6 million from $37.3 million because of seasonally higher advertising and promotion expense, as well as an increase in personnel and higher professional fees and data processing expenses. Other-real-estate-owned expense included the first full quarter of operating expenses, as well as $0.3 million of past-due property taxes, for a hospitality property. The efficiency ratio for the fourth quarter was 54.95%, compared with 52.65% for the third quarter of 2025.

Noninterest expense increased by $6.5 million, or 4.6%, to $147.8 million for the full year of 2025 from $141.3 million for 2024. The increase reflected a $4.3 million increase in salaries and benefits due to merit increases and investment in new talent, the absence of a $1.6 million gain from the 2024 sale of other-real-estate-owned, an increase of $1.0 million in other operating expenses for higher loan-related and deposit-related expenses, and an increase of $0.6 million in data processing expense. Partially offsetting this increase was lower repossessed personal property expense of $0.9 million. The efficiency ratio for full-year 2025 decreased to 54.71%, from 60.31% for 2024.

	For the Three Months Ended (in thousands)																				Percentage Change
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Q4-25				Q4-25
	2025				2025				2025				2025				2024				vs. Q3-25				vs. Q4-24
Noninterest Expense
Salaries and employee benefits	$	22,472			$	22,163			$	22,069			$	20,972			$	20,498				1.4	%			9.6	%
Occupancy and equipment		4,339				4,507				4,344				4,450				4,503				-3.7	%			-3.6	%
Data processing		4,098				3,860				3,727				3,787				3,800				6.2	%			7.8	%
Professional fees		2,343				1,978				1,725				1,468				1,821				18.5	%			28.7	%
Supplies and communication		573				423				515				517				551				35.5	%			4.0	%
Advertising and promotion		1,010				712				798				585				821				41.9	%			23.0	%
All other operating expenses		3,795				3,665				3,567				3,175				3,847				3.6	%			-1.3	%
Subtotal		38,630				37,308				36,745				34,954				35,841				3.5	%			7.8	%
Other real estate owned expense (income)		474				17				(461	)			41				(1,588	)			2688.2	%			129.8	%
Repossessed personal property expense (income)		5				32				63				(11	)			281				-84.4	%			-98.2	%
Total noninterest expense	$	39,109			$	37,357			$	36,347			$	34,984			$	34,534				4.7	%			13.3	%

Hanmi recorded a provision for income taxes of $8.9 million for the fourth quarter of 2025, compared with $9.4 million for the third quarter of 2025, representing effective tax rates of 29.5% and 29.9%, respectively. For the years ended December 31, 2025, and 2024, the provision for income taxes was $31.8 million and $26.4 million, representing effective tax rates of 29.5% and 29.8%, respectively.

Financial Position
Total assets at December 31, 2025, were $7.87 billion, a 0.2% increase from $7.86 billion at September 30, 2025. This increase was primarily due to a $35.1 million, or 0.5% increase in loans receivable, before the allowance for credit losses, which was partially offset by a $24.1 million decrease in securities available for sale.

	As of (in thousands)																				Percentage Change
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Q4-25				Q4-25
	2025				2025				2025				2025				2024				vs. Q3-25				vs. Q4-24
Loan Portfolio
Commercial real estate loans	$	4,030,105			$	4,015,291			$	3,948,922			$	3,975,651			$	3,949,622				0.4	%			2.0	%
Residential/consumer loans		1,049,872				1,043,577				993,869				979,536				951,302				0.6	%			10.4	%
Commercial and industrial loans		1,074,907				1,052,522				917,995				854,406				863,431				2.1	%			24.5	%
Equipment finance		408,483				416,869				445,171				472,596				487,022				-2.0	%			-16.1	%
Loans receivable		6,563,367				6,528,259				6,305,957				6,282,189				6,251,377				0.5	%			5.0	%
Loans held for sale		7,403				6,512				49,611				11,831				8,579				13.7	%			-13.7	%
Total	$	6,570,770			$	6,534,771			$	6,355,568			$	6,294,020			$	6,259,956				0.6	%			5.0	%

	As of
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
	2025				2025				2025				2025				2024
Composition of Loan Portfolio
Commercial real estate loans		61.3	%			61.4	%			62.2	%			63.1	%			63.1	%
Residential/consumer loans		16.0	%			16.0	%			15.6	%			15.6	%			15.2	%
Commercial and industrial loans		16.4	%			16.1	%			14.4	%			13.6	%			13.8	%
Equipment finance		6.2	%			6.4	%			7.0	%			7.5	%			7.8	%
Loans receivable		99.9	%			99.9	%			99.2	%			99.8	%			99.9	%
Loans held for sale		0.1	%			0.1	%			0.8	%			0.2	%			0.1	%
Total		100.0	%			100.0	%			100.0	%			100.0	%			100.0	%

New loan production was $374.8 million for the fourth quarter of 2025 with a weighted average rate of 6.90%, while payoffs were $123.1 million during the quarter at an average interest rate of 6.46%.

New loan production for full-year 2025 was $1.62 billion, an increase of 35.7% or $426.5 million, from $1.19 billion for the full year of 2024. The average rate for new loan production for 2025 was 7.04% compared with 7.87% for 2024. Payoffs for 2025 were $510.3 million at an average rate of 6.64% compared with $450.2 million at an average rate of 7.34% for 2024.

	For the Three Months Ended (in thousands)
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
	2025				2025				2025				2025				2024
New Loan Production
Commercial real estate loans	$	125,866			$	176,826			$	111,993			$	146,606			$	146,716
Residential/consumer loans		70,268				103,247				83,761				55,000				40,225
Commercial and industrial loans		82,079				211,454				53,444				42,344				60,159
SBA loans		44,065				44,931				46,829				55,242				49,740
Equipment finance		52,521				34,315				33,567				46,749				42,168
Subtotal		374,799				570,773				329,594				345,941				339,008
Payoffs		(123,086	)			(142,963	)			(119,139	)			(125,102	)			(137,933	)
Amortization		(133,992	)			(60,939	)			(151,357	)			(90,743	)			(60,583	)
Loan sales		(63,642	)			(100,452	)			(35,388	)			(42,193	)			(67,852	)
Net line utilization		(16,072	)			(39,497	)			12,435				(53,901	)			(75,651	)
Charge-offs & OREO		(2,899	)			(4,620	)			(12,377	)			(3,190	)			(3,356	)
Loans receivable-beginning balance		6,528,259				6,305,957				6,282,189				6,251,377				6,257,744
Loans receivable-ending balance	$	6,563,367			$	6,528,259			$	6,305,957			$	6,282,189			$	6,251,377

Deposits were $6.68 billion at the end of the fourth quarter of 2025, a decrease of $89.0 million, or 1.3%, from $6.77 billion at the end of the prior quarter. The change reflects an $84.0 million decrease in demand deposits and a $9.8 million decrease in money market and savings, partially offset by a $4.8 million increase in time deposits. Noninterest-bearing demand deposits represented 30.2% of total deposits at December 31, 2025, compared with 30.8% for the previous quarter and the ratio of average loans to average deposits for the fourth quarter was 96.6%, compared with 94.6% for the previous quarter.

	As of (in thousands)																				Percentage Change
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Q4-25				Q4-25
	2025				2025				2025				2025				2024				vs. Q3-25				vs. Q4-24
Deposit Portfolio
Demand: noninterest-bearing	$	2,015,212			$	2,087,132			$	2,105,369			$	2,066,659			$	2,096,634				-3.4	%			-3.9	%
Demand: interest-bearing		74,799				86,834				90,172				80,790				80,323				-13.9	%			-6.9	%
Money market and savings		2,084,218				2,094,028				2,092,847				2,073,943				1,933,535				-0.5	%			7.8	%
Time deposits		2,503,421				2,498,645				2,440,734				2,398,083				2,325,284				0.2	%			7.7	%
Total deposits	$	6,677,650			$	6,766,639			$	6,729,122			$	6,619,475			$	6,435,776				-1.3	%			3.8	%

	As of
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
	2025				2025				2025				2025				2024
Composition of Deposit Portfolio
Demand: noninterest-bearing		30.2	%			30.8	%			31.3	%			31.2	%			32.6	%
Demand: interest-bearing		1.1	%			1.3	%			1.3	%			1.2	%			1.2	%
Money market and savings		31.2	%			31.0	%			31.1	%			31.3	%			30.0	%
Time deposits		37.5	%			36.9	%			36.3	%			36.3	%			36.2	%
Total deposits		100.0	%			100.0	%			100.0	%			100.0	%			100.0	%

Stockholders’ equity at December 31, 2025, was $796.4 million, up $16.8 million from $779.6 million at September 30, 2025. The increase included net income, net of dividends paid, of $13.1 million for the fourth quarter. In addition, the increase in stockholders' equity included a $6.5 million decrease in unrealized after-tax losses on securities available for sale due to changes in interest rates during the fourth quarter of 2025. Hanmi also repurchased 73,600 shares of common stock at an average share price of $26.75 with an aggregate cost of $2.0 million during the quarter. At December 31, 2025, 837,202 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $785.4 million, or 9.99% of tangible assets at December 31, 2025, compared with $768.5 million, or 9.80% of tangible assets at the end of the prior quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At December 31, 2025, Hanmi’s preliminary common equity tier 1 capital ratio was 12.05% and its total risk-based capital ratio was 15.06%, compared with 12.00% and 15.05%, respectively, at the end of the prior quarter.

	As of																				Ratio Change
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Q4-25				Q4-25
	2025				2025				2025				2025				2024				vs. Q3-25				vs. Q4-24
Regulatory Capital ratios (1)
Hanmi Financial
Total risk-based capital		15.06	%			15.05	%			15.20	%			15.28	%			15.24	%			0.01				-0.18
Tier 1 risk-based capital		12.37	%			12.33	%			12.46	%			12.46	%			12.46	%			0.04				-0.09
Common equity tier 1 capital		12.05	%			12.00	%			12.12	%			12.12	%			12.11	%			0.05				-0.06
Tier 1 leverage capital ratio		10.70	%			10.64	%			10.63	%			10.67	%			10.63	%			0.06				0.07
Hanmi Bank
Total risk-based capital		14.25	%			14.28	%			14.39	%			14.47	%			14.43	%			-0.03				-0.18
Tier 1 risk-based capital		13.17	%			13.20	%			13.32	%			13.34	%			13.36	%			-0.03				-0.19
Common equity tier 1 capital		13.17	%			13.20	%			13.32	%			13.34	%			13.36	%			-0.03				-0.19
Tier 1 leverage capital ratio		11.47	%			11.46	%			11.43	%			11.49	%			11.47	%			0.01				0.00
(1)   Preliminary ratios for December 31, 2025

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.27% of loans at the end of the fourth quarter of 2025, compared with 0.18% at the end of the prior quarter and 0.30% at the end of the prior year.

Criticized loans totaled $97.0 million, or 1.48% of loans at December 31, 2025, up from $45.4 million, or 0.69% of loans at the end of the prior quarter. At December 31, 2024, criticized loans were $165.3 million, or 2.64% of loans. The fourth quarter change included a $54.3 million increase in special mention loans, offset by a $2.7 million decrease in classified loans. The increase in special mention loans was driven by $56.4 million in downgrades of pass-rated loans which included a $55.0 million hospitality loan, offset by $1.9 million in upgrades and $0.2 million in paydowns. The decrease in classified loans included $2.7 million of charge-offs, $2.3 million of paydowns and payoffs, and $0.7 million in upgrades, partially offset by $3.0 million of downgrades into the classified category. Of the $2.7 million in charge-offs, $1.9 million were equipment finance agreements. Of the $3.0 million in downgrades into the classified category, $1.9 million were equipment finance agreements.

Nonperforming loans were $18.1 million, or 0.28% of loans at December 31, 2025, down from $19.4 million, or 0.30% at the end of the prior quarter. At the end of last year, nonperforming loans were 0.23% of loans. The $1.3 million fourth quarter decrease reflected $2.2 million of charge-offs, $1.9 million of payoffs and paydowns, and $0.7 million of loans that were upgraded to performing loans. Of the $2.2 million of charge-offs, $1.9 million were equipment finance agreements. These declines were partially offset by $3.6 million of additions resulting from loans downgraded to non-performing status, of which $1.9 million were equipment financing agreements.

Nonperforming assets were $20.1 million at December 31, 2025, down from $21.4 million at the end of the prior quarter, which reflected the decrease in nonperforming loans. As a percentage of total assets, nonperforming assets were 0.26% at December 31, 2025, 0.27% at September 30, 2025, and 0.19% at December 31, 2024.

Gross charge-offs for the fourth quarter of 2025 were $2.9 million, compared with $2.6 million for the preceding quarter. Charge-offs during the fourth quarter included $2.0 million of equipment finance agreements. Recoveries of previously charged-off loans were $1.3 million in the fourth quarter of 2025, which included a $0.6 million recovery on a previously charged-off commercial line of credit and $0.6 million of recoveries on equipment financing agreements. As a result, there were $1.6 million of net charge-offs for the fourth quarter of 2025, or 0.10% of average loans annualized, compared to net recoveries of $0.5 million, or -0.03% for the prior quarter. For the 2025-year, net charge-offs were 0.23% of average loans compared with 0.07% for the prior year.

The allowance for credit losses was $69.9 million at December 31, 2025, compared with $69.8 million at September 30, 2025. Collectively evaluated allowances increased $1.2 million and specific allowances for loans decreased $1.1 million. The increase in the collectively evaluated allowance was due to an increase in qualitative loss factors. The ratio of the allowance for credit losses to loans was 1.07% at both December 31, 2025, and September 30, 2025. The ratio was 1.12% at year-end 2024.

	As of or for the Three Months Ended (in thousands)																				Amount Change
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Q4-25				Q4-25
	2025				2025				2025				2025				2024				vs. Q3-25				vs. Q4-24
Asset Quality Data and Ratios
Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	17,610			$	11,560			$	10,953			$	17,312			$	18,454			$	6,050			$	(844	)
Delinquent loans to total loans		0.27	%			0.18	%			0.17	%			0.28	%			0.30	%			0.09				(0.03	)
Criticized loans:
Special mention	$	71,113			$	16,775			$	12,700			$	118,380			$	139,613			$	54,338			$	(68,500	)
Classified		25,891				28,590				33,857				46,519				25,683				(2,699	)			208
Total criticized loans(1)	$	97,004			$	45,365			$	46,557			$	164,899			$	165,296			$	51,639			$	(68,292	)
Criticized loans to total loans		1.48	%			0.69	%			0.74	%			2.62	%			2.64	%			0.79				(1.16	)
Nonperforming assets:
Nonaccrual loans	$	18,112			$	19,369			$	25,967			$	35,458			$	14,272			$	(1,257	)		$	3,840
Loans 90 days or more past due and still accruing		-				-				-				112				-				-				-
Nonperforming loans		18,112				19,369				25,967				35,570				14,272				(1,257	)			3,840
Other real estate owned, net		1,980				1,995				-				117				117				(15	)			1,863
Nonperforming assets(2)	$	20,092			$	21,364			$	25,967			$	35,687			$	14,389			$	(1,272	)		$	5,703
Nonperforming assets to total assets		0.26	%			0.27	%			0.33	%			0.46	%			0.19	%			-0.01				0.07
Nonperforming loans to total loans		0.28	%			0.30	%			0.41	%			0.57	%			0.23	%			-0.02				0.05
(1) Includes nonaccrual loans of $18.1 million, $19.4 million, $24.1 million, $34.4 million, and $13.4 million as of Q4-25, Q3-25, Q2-25, Q1-25, and Q4-24, respectively.
(2) Excludes repossessed personal property of $0.6 million, $0.4 million, $0.6 million, $0.7 million, and $0.6 million as of Q4-25, Q3-25, Q2-25, Q1-25, and Q4-24, respectively.

	As of or for the Three Months Ended (in thousands)
	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
	2025				2025				2025				2025				2024
Allowance for credit losses related to loans:
Balance at beginning of period	$	69,781			$	66,756			$	70,597			$	70,147			$	69,163
Credit loss expense (recovery) on loans		1,701				2,543				7,523				2,396				855
Net loan (charge-offs) recoveries		(1,579	)			482				(11,364	)			(1,946	)			129
Balance at end of period	$	69,903			$	69,781			$	66,756			$	70,597			$	70,147
Net loan charge-offs (recoveries) to average loans (1)		0.10	%			-0.03	%			0.73	%			0.13	%			-0.01	%
Allowance for credit losses to loans		1.07	%			1.07	%			1.06	%			1.12	%			1.12	%
Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	2,107			$	2,506			$	2,399			$	2,074			$	1,984
Credit loss expense (recovery) on off-balance sheet items		242				(399	)			107				325				90
Balance at end of period	$	2,349			$	2,107			$	2,506			$	2,399			$	2,074
Unused commitments to extend credit	$	930,122			$	952,475			$	915,847			$	896,282			$	782,587
(1) Annualized

Corporate Developments
On October 24, 2025, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2025 fourth quarter of $0.27 per share. Hanmi paid the dividend on November 20, 2025, to stockholders of record as of the close of business on November 4, 2025.

Earnings Conference Call
Hanmi Bank will host its fourth quarter 2025 earnings conference call today, January 27, 2026, at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches, five loan production offices and three loan centers in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance, or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

• a failure to maintain adequate levels of capital and liquidity to support our operations;
• general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
• volatility and deterioration in the credit and equity markets;
• changes in investor sentiment or consumer spending, borrowing and savings habits;
• availability of capital from private and government sources;
• demographic changes;
• competition for loans and deposits and failure to attract or retain loans and deposits;
• inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
• our ability to enter new markets successfully and capitalize on growth opportunities;
• the current or anticipated impact of military conflict, terrorism, or other geopolitical events;
• the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
• risks of natural disasters;
• legal proceedings and litigation brought against us;
• a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
• the failure to maintain current technologies;
• risks associated with Small Business Administration loans;
• failure to attract or retain key employees;
• our ability to access cost-effective funding;
• the imposition of tariffs or other domestic or international governmental policies and any retaliatory responses;
• the impact of a potential federal government shutdown, which may impact on our ability to effect sales of small business administration loans;
• changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
• fluctuations in real estate values;
• changes in accounting policies and practices;
• changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
• the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
• strategic transactions we may enter into, including the costs associated with the evaluation of any strategic opportunities and the overall effects of any acquisitions or dispositions we may make;
• the adequacy of and changes in the economic assumptions and methodology for computing our allowance for credit losses;
• our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
• changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
• our ability to control expenses; and
• cyber security and fraud risks against our information technology and those of our third-party providers and vendors.
  
  

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Hanmi Financial Corporation and Subsidiaries Consolidated Balance Sheets (Unaudited) (Dollars in thousands)
	December 31,				September 30,				Percentage				December 31,				Percentage
	2025				2025				Change				2024				Change
Assets
Cash and due from banks	$	212,841			$	215,654				-1.3	%		$	304,800				-30.2	%
Securities available for sale, at fair value		880,624				904,721				-2.7	%			905,798				-2.8	%
Loans held for sale, at the lower of cost or fair value		7,403				6,512				13.7	%			8,579				-13.7	%
Loans receivable, net of allowance for credit losses		6,493,465				6,458,478				0.5	%			6,181,230				5.1	%
Accrued interest receivable		24,466				23,986				2.0	%			22,937				6.7	%
Premises and equipment, net		20,378				20,340				0.2	%			21,404				-4.8	%
Customers' liability on acceptances		125				342				-63.5	%			1,226				89.8	%
Servicing assets		6,459				6,484				-0.4	%			6,457				0.0	%
Goodwill and other intangible assets, net		11,031				11,031				0.0	%			11,031				0.0	%
Federal Home Loan Bank ("FHLB") stock, at cost		16,385				16,385				0.0	%			16,385				0.0	%
Bank-owned life insurance		56,697				56,382				0.6	%			57,168				-0.8	%
Prepaid expenses and other assets		139,311				136,416				2.1	%			140,910				-1.1	%
Total assets	$	7,869,185			$	7,856,731				0.2	%		$	7,677,925				2.5	%
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,015,212			$	2,087,132				-3.4	%		$	2,096,634				-3.9	%
Interest-bearing		4,662,438				4,679,507				-0.4	%			4,339,142				7.5	%
Total deposits		6,677,650				6,766,639				-1.3	%			6,435,776				3.8	%
Accrued interest payable		34,783				34,219				1.6	%			34,824				-0.1	%
Bank's liability on acceptances		125				342				-63.5	%			1,226				89.8	%
Borrowings		150,000				62,500				140.0	%			262,500				-42.9	%
Subordinated debentures		130,463				130,309				0.1	%			130,638				-0.1	%
Accrued expenses and other liabilities		79,778				83,172				-4.1	%			80,787				-1.2	%
Total liabilities		7,072,799				7,077,181				-0.1	%			6,945,751				1.8	%
Stockholders' equity:
Common stock		34				34				0.0	%			34				0.0	%
Additional paid-in capital		594,667				593,768				0.2	%			591,069				0.6	%
Accumulated other comprehensive (loss)		(43,175	)			(47,959	)			10.0	%			(70,723	)			39.0	%
Retained earnings		394,335				381,183				3.5	%			350,869				12.4	%
Less treasury stock		(149,475	)			(147,476	)			-1.4	%			(139,075	)			-7.5	%
Total stockholders' equity		796,386				779,550				2.2	%			732,174				8.8	%
Total liabilities and stockholders' equity	$	7,869,185			$	7,856,731				0.2	%		$	7,677,925				2.5	%

Hanmi Financial Corporation and Subsidiaries Consolidated Statements of Income (Unaudited) (Dollars in thousands, except share and per share data)
	Three Months Ended
	December 31,				September 30,				Percentage				December 31,				Percentage
	2025				2025				Change				2024				Change
Interest and dividend income:
Interest and fees on loans receivable	$	96,592			$	95,691				0.9	%		$	91,545				5.5	%
Interest on securities		6,323				6,592				-4.1	%			5,866				7.8	%
Dividends on FHLB stock		361				357				1.1	%			360				0.3	%
Interest on deposits in other banks		1,837				2,586				-29.0	%			2,342				-21.6	%
Total interest and dividend income		105,113				105,226				-0.1	%			100,113				5.0	%
Interest expense:
Interest on deposits		39,978				42,244				-5.4	%			43,406				-7.9	%
Interest on borrowings		695				324				114.5	%			1,634				-57.5	%
Interest on subordinated debentures		1,561				1,579				-1.1	%			1,624				-3.9	%
Total interest expense		42,234				44,147				-4.3	%			46,664				-9.5	%
Net interest income before credit loss expense		62,879				61,079				2.9	%			53,449				17.6	%
Credit loss expense		1,943				2,145				-9.4	%			945				105.6	%
Net interest income after credit loss expense		60,936				58,934				3.4	%			52,504				16.1	%
Noninterest income:
Service charges on deposit accounts		2,196				2,160				1.7	%			2,192				0.2	%
Trade finance and other service charges and fees		1,735				1,551				11.9	%			1,364				27.2	%
Gain on sale of Small Business Administration ("SBA") loans		1,790				1,857				-3.6	%			1,443				24.0	%
Other operating income		2,578				4,312				-40.2	%			2,358				9.3	%
Total noninterest income		8,299				9,880				-16.0	%			7,357				12.8	%
Noninterest expense:
Salaries and employee benefits		22,472				22,163				1.4	%			20,498				9.6	%
Occupancy and equipment		4,339				4,507				-3.7	%			4,503				-3.6	%
Data processing		4,098				3,860				6.2	%			3,800				7.8	%
Professional fees		2,343				1,978				18.5	%			1,821				28.7	%
Supplies and communications		573				423				35.5	%			551				4.0	%
Advertising and promotion		1,010				712				41.9	%			821				23.0	%
Other operating expenses		4,274				3,714				15.1	%			2,540				68.3	%
Total noninterest expense		39,109				37,357				4.7	%			34,534				13.3	%
Income before tax		30,126				31,457				-4.2	%			25,327				18.9	%
Income tax expense		8,887				9,396				-5.4	%			7,632				16.4	%
Net income	$	21,239			$	22,061				-3.7	%		$	17,695				20.0	%
Basic earnings per share:	$	0.71			$	0.73							$	0.59
Diluted earnings per share:	$	0.70			$	0.73							$	0.58
Weighted-average shares outstanding:
Basic		29,694,534				29,830,475								29,933,644
Diluted		29,902,375				29,880,865								30,011,773
Common shares outstanding		29,894,757				29,975,371								30,195,999

Hanmi Financial Corporation and Subsidiaries Consolidated Statements of Income (Unaudited) (Dollars in thousands, except share and per share data)
	Twelve Months Ended
	December 31,				December 31,				Percentage
	2025				2024				Change
Interest and dividend income:
Interest and fees on loans receivable	$	375,760			$	366,153				2.6	%
Interest on securities		25,345				21,583				17.4	%
Dividends on FHLB stock		1,433				1,436				-0.2	%
Interest on deposits in other banks		8,390				9,611				-12.7	%
Total interest and dividend income		410,928				398,783				3.0	%
Interest expense:
Interest on deposits		164,705				182,692				-9.8	%
Interest on borrowings		3,727				6,746				-44.8	%
Interest on subordinated debentures		6,306				6,571				-4.0	%
Total interest expense		174,738				196,009				-10.9	%
Net interest income before credit loss expense		236,190				202,774				16.5	%
Credit loss expense		14,439				4,419				226.7	%
Net interest income after credit loss expense		221,751				198,355				11.8	%
Noninterest income:
Service charges on deposit accounts		8,742				9,381				-6.8	%
Trade finance and other service charges and fees		6,144				5,309				15.7	%
Gain on sale of Small Business Administration ("SBA") loans		7,808				6,112				27.7	%
Other operating income		11,281				10,783				4.6	%
Total noninterest income		33,975				31,585				7.6	%
Noninterest expense:
Salaries and employee benefits		87,676				83,368				5.2	%
Occupancy and equipment		17,639				18,146				-2.8	%
Data processing		15,472				14,876				4.0	%
Professional fees		7,514				6,956				8.0	%
Supplies and communications		2,028				2,261				-10.3	%
Advertising and promotion		3,104				3,028				2.5	%
Other operating expenses		14,366				12,700				13.1	%
Total noninterest expense		147,799				141,335				4.6	%
Income before tax		107,927				88,605				21.8	%
Income tax expense		31,838				26,404				20.6	%
Net income	$	76,089			$	62,201				22.3	%
Basic earnings per share:	$	2.53			$	2.06
Diluted earnings per share:	$	2.51			$	2.05
Weighted-average shares outstanding:
Basic		29,852,149				30,019,815
Diluted		30,042,274				30,102,336
Common shares outstanding		29,894,757				30,195,999

Hanmi Financial Corporation and Subsidiaries Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited) (Dollars in thousands)
	Three Months Ended
	December 31, 2025											September 30, 2025											December 31, 2024
					Interest			Average								Interest			Average								Interest			Average
	Average				Income /			Yield /				Average				Income /			Yield /				Average				Income /			Yield /
	Balance				Expense			Rate				Balance				Expense			Rate				Balance				Expense			Rate
Assets
Interest-earning assets:
Loans:
Commercial real estate (1)	$	4,004,348			$	57,774			5.72	%		$	3,934,477			$	56,908			5.74	%		$	3,882,407			$	55,613			5.70	%
Residential mortgage		1,043,250				14,134			5.38	%			1,020,889				13,812			5.37	%			936,635				12,279			5.22	%
Commercial and industrial (1)		990,279				17,467			7.00	%			904,019				17,593			7.72	%			777,738				15,653			8.01	%
Consumer		5,508				87			6.29	%			8,323				156			7.43	%			5,894				104			7.02	%
Equipment finance		412,854				7,130			6.91	%			436,727				7,222			6.61	%			500,590				7,896			6.31	%
Loans receivable (1)		6,456,239				96,592			5.94	%			6,304,435				95,691			6.03	%			6,103,264				91,545			5.97	%
Securities (2)		955,811				6,323			2.67	%			985,888				6,592			2.70	%			998,313				5,866			2.38	%
FHLB stock		16,385				362			8.75	%			16,385				358			8.65	%			16,385				360			8.75	%
Interest-bearing deposits in other banks		191,731				1,836			3.80	%			239,993				2,585			4.27	%			204,408				2,342			4.56	%
Total interest-earning assets		7,620,166				105,113			5.48	%			7,546,701				105,226			5.54	%			7,322,370				100,113			5.45	%
Noninterest-earning assets:
Cash and due from banks		54,651											53,144											54,678
Allowance for credit losses		(69,786	)										(67,851	)										(69,291	)
Other assets		247,808											252,039											246,744
Total assets	$	7,852,839										$	7,784,033										$	7,554,501
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	77,297			$	30			0.15	%		$	86,839			$	38			0.17	%		$	79,784			$	26			0.13	%
Money market and savings		2,130,616				15,130			2.82	%			2,122,967				17,238			3.22	%			1,934,540				16,564			3.41	%
Time deposits		2,506,582				24,818			3.93	%			2,494,285				24,968			3.97	%			2,346,363				26,816			4.55	%
Total interest-bearing deposits		4,714,495				39,978			3.36	%			4,704,091				42,244			3.56	%			4,360,687				43,406			3.96	%
Borrowings		64,565				695			4.27	%			27,772				324			4.63	%			141,604				1,634			4.59	%
Subordinated debentures		130,385				1,561			4.79	%			130,766				1,579			4.83	%			130,567				1,624			4.97	%
Total interest-bearing liabilities		4,909,445				42,234			3.41	%			4,862,629				44,147			3.60	%			4,632,858				46,664			4.01	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,969,908											1,960,331											1,967,789
Other liabilities		142,754											142,592											162,064
Stockholders' equity		830,732											818,481											791,790
Total liabilities and stockholders' equity	$	7,852,839										$	7,784,033										$	7,554,501
Net interest income					$	62,879										$	61,079										$	53,449
Cost of deposits									2.37	%										2.51	%										2.73	%
Net interest spread (taxable equivalent basis)									2.07	%										1.94	%										1.44	%
Net interest margin (taxable equivalent basis)									3.28	%										3.22	%										2.91	%
(1)   Includes average loans held for sale
(2)   Yields calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Hanmi Financial Corporation and Subsidiaries Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited) (Dollars in thousands)
	Twelve Months Ended
	December 31, 2025											December 31, 2024
					Interest			Average								Interest			Average
	Average				Income /			Yield /				Average				Income /			Yield /
	Balance				Expense			Rate				Balance				Expense			Rate
Assets
Interest-earning assets:
Loans:
Commercial real estate (1)	$	3,963,919			$	225,929			5.70	%		$	3,874,291			$	219,899			5.68	%
Residential mortgage		1,004,057				53,950			5.37	%			952,709				49,344			5.18	%
Commercial and industrial (1)		878,181				65,518			7.46	%			741,568				63,651			8.58	%
Consumer		7,127				501			7.03	%			6,509				486			7.46	%
Equipment finance		449,440				29,862			6.64	%			535,636				32,773			6.12	%
Loans receivable (1)		6,302,724				375,760			5.96	%			6,110,713				366,153			5.99	%
Securities (2)		984,172				25,345			2.60	%			983,434				21,583			2.22	%
FHLB stock		16,385				1,433			8.74	%			16,385				1,437			8.76	%
Interest-bearing deposits in other banks		202,152				8,390			4.15	%			192,342				9,610			5.00	%
Total interest-earning assets		7,505,433				410,928			5.48	%			7,302,874				398,783			5.46	%
Noninterest-earning assets:
Cash and due from banks		53,861											55,830
Allowance for credit losses		(69,373	)										(68,553	)
Other assets		249,812											248,820
Total assets	$	7,739,733										$	7,538,971
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	81,213			$	124			0.15	%		$	83,807			$	119			0.14	%
Money market and savings		2,100,326				66,147			3.15	%			1,870,541				68,304			3.65	%
Time deposits		2,445,794				98,434			4.02	%			2,433,516				114,269			4.70	%
Total interest-bearing deposits		4,627,333				164,705			3.56	%			4,387,864				182,692			4.16	%
Borrowings		82,512				3,727			4.52	%			154,193				6,746			4.38	%
Subordinated debentures		130,687				6,306			4.83	%			130,325				6,571			5.04	%
Total interest-bearing liabilities		4,840,532				174,738			3.61	%			4,672,382				196,009			4.20	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,940,552											1,920,492
Other liabilities		142,508											165,288
Stockholders' equity		816,141											780,809
Total liabilities and stockholders' equity	$	7,739,733										$	7,538,971
Net interest income					$	236,190										$	202,774
Cost of deposits									2.51	%										2.90	%
Net interest spread (taxable equivalent basis)									1.87	%										1.27	%
Net interest margin (taxable equivalent basis)									3.15	%										2.78	%
(1)   Includes average loans held for sale
(2)   Yields calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Non-GAAP Financial Measures

These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Tangible Common Equity to Tangible Assets Ratio

Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

Tangible Common Equity to Tangible Assets Ratio (Unaudited) (In thousands, except share, per share data and ratios)
Hanmi Financial Corporation and Subsidiaries	December 31,				September 30,				June 30,				March 31,				December 31,
	2025				2025				2025				2025				2024
Assets	$	7,869,185			$	7,856,731			$	7,862,363			$	7,729,035			$	7,677,925
Less goodwill and other intangible assets		(11,031	)			(11,031	)			(11,031	)			(11,031	)			(11,031	)
Tangible assets	$	7,858,154			$	7,845,700			$	7,851,332			$	7,718,004			$	7,666,894
Stockholders' equity (1)	$	796,386			$	779,550			$	762,834			$	751,485			$	732,174
Less goodwill and other intangible assets		(11,031	)			(11,031	)			(11,031	)			(11,031	)			(11,031	)
Tangible stockholders' equity (1)	$	785,355			$	768,519			$	751,803			$	740,454			$	721,143
Stockholders' equity to assets		10.12	%			9.92	%			9.70	%			9.72	%			9.54	%
Tangible common equity to tangible assets (1)		9.99	%			9.80	%			9.58	%			9.59	%			9.41	%
Common shares outstanding		29,894,757				29,975,371				30,176,568				30,233,514				30,195,999
Tangible common equity per common share	$	26.27			$	25.64			$	24.91			$	24.49			$	23.88
(1)   There were no preferred shares outstanding at the periods indicated.

Preprovision Net Revenue

Preprovision net revenue is supplemental financial information determined by a method other than in accordance with U.S. GAAP. This non-GAAP measure is used by management to measure Hanmi’s core operational performance, excluding the impact of provisions for loan losses. By isolating preprovision net revenue, management can better understand the Company’s profitability and make more informed strategic decisions. Preprovision net revenue is calculated adding income tax expense and credit loss expense to net income. Management believes this financial measure highlights the Company's net revenue activities and operational efficiency, excluding unpredictable credit loss expense.

The following table details the Company's preprovision net revenues, which are non-GAAP measures, for the periods indicated:

Preprovision Net Revenue (Unaudited) (In thousands, except percentages)
																					Percentage Change
Hanmi Financial Corporation and Subsidiaries	December 31,				September 30,				June 30,				March 31,				December 31,				Q4-25				Q4-25
	2025				2025				2025				2025				2024				vs. Q3-25				vs. Q4-24
Net income	$	21,239			$	22,061			$	15,117			$	17,672			$	17,695
Add back:
Credit loss expense		1,943				2,145				7,631				2,721				945
Income tax expense		8,887				9,396				6,115				7,441				7,632
Preprovision net revenue	$	32,069			$	33,602			$	28,863			$	27,834			$	26,272				-4.6	%			22.1	%

FAQ

What were Hanmi Financial (HAFC) full-year 2025 earnings and EPS?

Hanmi reported full-year 2025 net income of $76.1M, or $2.51 per diluted share.

How did Hanmi's net interest margin (NIM) perform in Q4 2025 and for 2025?

NIM was 3.28% in Q4 2025 and 3.15% for the full year 2025 (taxable-equivalent basis).

What drove Hanmi's 2025 earnings growth (HAFC)?

Earnings growth was driven by higher net interest income, loan growth, and lower average rates on interest-bearing deposits.

How large was Hanmi's credit loss expense in 2025 and why did it increase?

Credit loss expense was $14.4M in 2025, primarily impacted by an $8.6M charge-off of a syndicated CRE office loan in Q2 2025.

What were Hanmi's Q4 2025 loan and deposit balances (HAFC)?

At Q4 end, loans receivable were $6.56B and total deposits were $6.68B (noninterest-bearing deposits ~30.2%).

Did Hanmi return capital to shareholders in 2025?

Yes; Hanmi returned $10.1M in 2025 through share repurchases ($2.0M) and dividends ($8.1M).