Hanmi Bank Achieves 22% Earnings Growth for 2025
"Hanmi delivered solid results in the fourth quarter, enabling us to finish 2025 with sustained momentum," said Bonnie Lee, CEO. "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."
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Hanmi Financial Declares Increased Quarterly Dividend
- Dividend Increase: Hanmi Financial declared a quarterly dividend of $0.28 per share, reflecting a 3.7% increase from the previous $0.27, indicating ongoing improvements in cash flow and profitability, which is expected to boost investor confidence and attract more shareholders.
- Dividend Yield: The forward yield of 4.52% not only provides a substantial return for investors but also reflects the company's financial stability in the current economic environment, enhancing market attractiveness for its stock.
- Share Repurchase Expansion: The company expanded its existing share repurchase authorization by 1.5 million shares to approximately 2.3 million shares in total, aiming to enhance shareholder value by reducing the share count and demonstrating management's confidence in the company's future performance.
- Future Outlook: Hanmi Financial outlines a strategy for low to mid-single-digit loan growth and deposit expansion for 2026, indicating its proactive approach to market challenges and aiming to improve overall financial performance through robust growth strategies.
Hanmi Financial Reports Q4 2025 Earnings Highlights
- Net Income Performance: Hanmi Financial reported a net income of $21.2 million for Q4 2025, translating to $0.70 per diluted share, which reflects a 3.7% decline from the previous quarter primarily due to decreased noninterest income, indicating challenges in revenue diversification.
- Interest Income Growth: The net interest income for the fourth quarter grew by 2.9% to $62.9 million, with the net interest margin expanding to 3.28%, demonstrating effective management of interest income through lower funding costs and increased loan balances.
- Stable Asset Quality: Credit loss expenses decreased to $1.9 million, with a nonperforming asset ratio of only 0.26%, showcasing the company's effective asset quality management despite competitive pressures, maintaining robust credit monitoring practices.
- 2026 Outlook: Management anticipates loan growth in 2026 to remain in the low to mid-single-digit range, emphasizing further diversification of the loan portfolio and a stable funding mix to navigate market competition and cost pressures.
