Hanmi Financial Corp. (HAFC)
NASDAQ:HAFC
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Hanmi Financial
(NASDAQ:HAFC)
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Rating:76Outperform
Price Target:
$34.00
â–²(21.00% Upside)
Action:Reiterated
Date:05/28/26
The score is driven primarily by solid financial quality (improving leverage and strong recent cash generation) and favorable technicals (price above major moving averages with positive momentum). Valuation adds support via a low P/E and healthy dividend yield. Earnings-call commentary reinforces the outlook with ongoing NIM expansion and improving asset quality, though loan growth softness and the potential fading of deposit-cost tailwinds temper the upside.
Positive Factors
Improved leverage and capital position
Debt-to-equity materially down to ~0.16 and tangible common equity per share and TCE/TA (10.11%) provide a durable capital buffer. This strengthens regulatory and strategic flexibility, supports buybacks/dividends, and lowers solvency risk through economic cycles over the next 2–6 months.
Negative Factors
High CRE concentration
With 61% of loans in commercial real estate, the bank is more exposed to sector-specific downturns. Even with conservative LTVs and DSCR, regional CRE weakness or rising vacancies could rapidly impair asset quality and capital, elevating cyclical earnings and credit risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage and capital position
Debt-to-equity materially down to ~0.16 and tangible common equity per share and TCE/TA (10.11%) provide a durable capital buffer. This strengthens regulatory and strategic flexibility, supports buybacks/dividends, and lowers solvency risk through economic cycles over the next 2–6 months.
Read all positive factors
Hanmi Financial (HAFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$905.79M
Dividend Yield3.82%
Average Volume (3M)167.75K
Price to Earnings (P/E)11.1
Beta (1Y)0.81
Revenue Growth4.21%
EPS Growth26.10%
CountryUS
Employees597
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.72
Shares Outstanding29,766,436
10 Day Avg. Volume140,460
30 Day Avg. Volume167,752
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)1.01
Price to Sales (P/S)1.81
P/FCF Ratio3.96
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue1.76
Enterprise Value/Gross Profit2.99
Enterprise Value/Ebitda7.32
Forecast
1Y Price Target
$32.63Price Target Upside16.10% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)3.14
Revenue Forecast (FY)$298.10M
Hanmi Financial Business Overview & Revenue Model
Company Description
Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. The company offers various deposit products, including noninterest-bearing checking accounts, int...
How the Company Makes Money
Hanmi Financial makes money primarily through its banking subsidiary by earning interest income and collecting fees.
1) Net interest income (core earnings driver): The bank originates and holds loans (e.g., commercial and industrial, commercial r...
Hanmi Financial Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational and financial momentum: strong earnings, the seventh consecutive quarter of NIM expansion, robust C&I originations, deposit growth with a healthy core deposit mix, improved asset quality, better efficiency, and active capital returns. Headwinds included a slight decline in total loans due to payoffs, a sharp drop in residential mortgage production, some borrower‑specific downgrades (special mention/Class 5), and caution that favorable deposit-cost tailwinds may not persist. Corporate Korea has driven deposit growth but loan demand remains muted. Overall, positives materially outweigh the negatives.Positive Updates
Net Income and Earnings Per Share
Net income of $22.6 million for Q1 2026, or $0.75 per diluted share, showing sequential and year-over-year growth.
Negative Updates
Slight Overall Loan Balance Decline
Total loans declined slightly in the quarter due to higher-than-normal payoffs and elevated paydown activity despite solid originations.
Read all updates
Q1-2026 Updates
Positive
Negative
Net Income and Earnings Per Share
Net income of $22.6 million for Q1 2026, or $0.75 per diluted share, showing sequential and year-over-year growth.
Read all positive updates
Company Guidance
Guidance reiterated on the call was modest and disciplined: Hanmi expects 2026 loan growth in the low- to mid-single-digit range, SBA production of roughly $45–50 million per quarter (seasonally up to $50–55 million in peak quarters), and an annual effective tax rate moving toward ~27%; management will prioritize deposit growth (including growing noninterest-bearing deposits that remain ~30% of total), portfolio diversification and conservative underwriting while keeping expense discipline (Q1 noninterest expense $38.4M; efficiency ratio ~53.5%). Near-term NIM upside is expected from repricing maturing CRE loans (≈$1B maturing at high‑4% rates vs. new loan yields ~6.5%) and securities cash flows, after Q1 NIM of 3.38% (up 10 bps); Q1 loan production was $378M (weighted avg rate 6.54%), including C&I $135M (up 64%) and CRE $131M (CRE ≈61% of loans, Wtd avg LTV ~47%, DSCR ~2.2x). Capital and shareholder return priorities were maintained: tangible common equity per share $26.56, TCE/tangible assets 10.11%, Q1 net income $22.6M ($0.75/sh), and continued buybacks/dividends (Q1 repurchases $4.8M; total capital returned ~$13.4M), with management indicating buybacks likely to continue at a similar cadence absent material change.Hanmi Financial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 439.60M | 444.74M | 429.51M | 397.56M | 308.01M | 256.80M |
| Gross Profit | 258.35M | 255.56M | 229.08M | 245.16M | 271.01M | 259.58M |
| EBITDA | 105.62M | 113.58M | 95.07M | 121.37M | 153.11M | 151.58M |
| Net Income | 80.97M | 76.09M | 62.20M | 80.04M | 101.39M | 98.68M |
Balance Sheet | ||||||
| Total Assets | 7.84B | 7.87B | 7.68B | 7.57B | 7.38B | 6.86B |
| Cash, Cash Equivalents and Short-Term Investments | 409.07M | 1.09B | 1.21B | 1.17B | 1.21B | 1.52B |
| Total Debt | 130.62M | 280.46M | 393.14M | 455.01M | 479.41M | 352.51M |
| Total Liabilities | 7.04B | 7.07B | 6.95B | 6.87B | 6.74B | 6.22B |
| Stockholders Equity | 802.82M | 796.39M | 732.17M | 701.89M | 637.51M | 643.42M |
Cash Flow | ||||||
| Free Cash Flow | 201.32M | 203.70M | 51.33M | 105.38M | 145.38M | 91.00M |
| Operating Cash Flow | 204.04M | 206.01M | 53.95M | 107.80M | 147.31M | 93.73M |
| Investing Cash Flow | -295.22M | -384.32M | -107.47M | -209.99M | -881.51M | -447.04M |
| Financing Cash Flow | 16.22M | 86.35M | 56.00M | 52.10M | 477.65M | 570.43M |
Hanmi Financial Technical Analysis
Positive
28.10
Price Trends
28.85
Positive
27.70
Positive
26.67
Positive
Market Momentum
0.33
Positive
56.62
Neutral
49.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAFC, the sentiment is Positive. The current price of 28.1 is below the 20-day moving average (MA) of 29.90, below the 50-day MA of 28.85, and above the 200-day MA of 26.67, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 49.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HAFC.
Hanmi Financial Risk Analysis
Hanmi Financial disclosed 43 risk factors in its most recent earnings report. Hanmi Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hanmi Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $775.38M | 12.83 | 11.10% | 2.33% | 2.56% | 5.05% | |
76 Outperform | $905.79M | 11.13 | 10.31% | 3.82% | 4.21% | 26.10% | |
76 Outperform | $919.98M | 11.21 | 10.08% | 2.68% | 25.89% | 20.01% | |
75 Outperform | $968.14M | 12.93 | 15.09% | 3.55% | 10.15% | 7.32% | |
74 Outperform | $917.95M | 14.82 | 9.21% | 3.48% | 6.30% | 27.79% | |
72 Outperform | $911.05M | 9.89 | 13.36% | 3.05% | 4.55% | 16.09% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HAFC
Hanmi Financial
30.43
7.93
35.27%
CCBG
Capital City Bank
45.34
9.05
24.94%
CCNE
Cnb Financial
31.05
9.69
45.37%
MBWM
Mercantile Bank
52.74
9.45
21.84%
TRST
TrustCo Bank
52.53
21.95
71.77%
MCBS
MetroCity Bankshares
33.78
6.69
24.69%
Hanmi Financial Corporate Events
Executive/Board ChangesShareholder Meetings
Hanmi Financial Shareholders Approve Directors and Key Proposals
Positive
May 28, 2026
On May 22, 2026, board member Gideon Yu resigned from the boards of Hanmi Financial and Hanmi Bank, ending his service that began in 2021 and his roles on key governance and risk committees. His departure, which was not due to any disagreement wit...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Hanmi Financial outlines growth strategy and capital strength
Positive
May 1, 2026
On May 1, 2026, Hanmi Financial Corporation released a slide presentation to analysts and prospective investors outlining its operating and growth strategies and reviewing recent financial performance, including first-quarter 2026 metrics and deta...
Dividends
Hanmi Financial Declares Second-Quarter 2026 Cash Dividend
Positive
Apr 23, 2026
Hanmi Financial Corporation, the Los Angeles-based parent of Hanmi Bank, operates a multi-state branch network serving diverse communities and specializes in real estate, commercial, Small Business Administration and trade finance lending for smal...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.