Hanmi Shareholders Reap Rewards of Strong Performance

Following a year of robust profitability, Hanmi Financial Corporation is returning more capital to its investors. The bank's board has approved an increased quarterly cash dividend and expanded its existing share repurchase authorization, signaling confidence in its financial trajectory and ongoing strategic initiatives.

The decision to enhance shareholder returns is built upon a solid financial foundation established in 2025. The company reported a net income of $76.1 million for the year, representing a significant 22% year-over-year increase. This translated to a diluted earnings per share of $2.51. Operational efficiency saw marked improvement, with the efficiency ratio dropping to 54.7% from 60.3% in the prior year.

The fourth quarter performance remained strong, with net interest income rising 2.9% sequentially to $62.9 million. A key profitability metric, the net interest margin, expanded to 3.28% in Q4. Asset quality was maintained at a high level, as non-performing loans constituted just 0.26% of total assets at year-end.

Details of the Enhanced Capital Return Program

Investors will see the direct benefit of these results through two primary channels:

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• Increased Dividend: The quarterly dividend has been raised to $0.28 per share, a 4% increase. Shareholders of record on Monday, February 9, will be eligible for the payment, which is scheduled to be distributed on February 25.
• Expanded Buyback: The board has augmented its share repurchase program by an additional 1.5 million shares. Combined with remaining authorizations, Hanmi now has the capacity to buy back approximately 2.3 million of its own shares. This repurchase pool equates to roughly 7.8% of the shares outstanding as of December 31, 2025.

Strategic Portfolio Reshaping for Future Growth

Beyond capital returns, management is proactively repositioning the bank's loan portfolio to navigate a shifting interest rate environment. A strategic rebalancing is underway, with a clear focus on diversification.

In 2025, commercial and industrial (C&I) lending grew by a substantial 25%. Concurrently, the bank reduced its exposure to commercial real estate (CRE) loans, which now represent 61.3% of the total loan portfolio, down from previous levels.

A critical near-term focus will be managing funding costs. In the first half of 2026, certificates of deposit (CDs) totaling approximately $1.8 billion are set to mature. These are currently carrying interest rates between 3.95% and 4.01%. Management has indicated a target to reprice these funds in the range of 3.5% to 3.7%. Successfully lowering this cost of funding would provide further support for the net interest margin.

The upcoming dividend payment on February 25 marks a confident start to the new fiscal year for Hanmi, reflecting a strategy that pairs direct shareholder rewards with careful financial stewardship.