Education
About Us
Working with TipRanks
Follow Us
Hanmi Financial Corp. (HAFC)
NASDAQ:HAFC
Top Page
Hanmi Financial
(NASDAQ:HAFC)
73Outperform
Positive Factors
Earnings Growth
The stock rating is upgraded to BUY due to expectations of significant earnings per share growth driven by deposit repricing and stable loan yields.
Valuation
A fair value estimate increase to $30.00 reflects optimism about future financial performance not yet reflected in the stock's current valuation.
Negative Factors
Loan Quality
Criticized loans increased $89 million sequentially to $160 million, primarily driven by two CRE loans in the hospitality industry and one C&I loan in the healthcare industry.
Hanmi Financial (HAFC) vs. S&P 500 (SPY)
Market Cap
$709.82M
Dividend Yield4.34%
Average Volume (3M)254.25K
Price to Earnings (P/E)11.0
Beta (1Y)1.07
Revenue Growth5.19%
EPS Growth-10.86%
CountryUS
Employees597
SectorFinancial
Sector Strength88
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.13
Shares Outstanding30,217,915
10 Day Avg. Volume179,575
30 Day Avg. Volume254,253
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.85
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.61
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.50Price Target Upside12.81% Upside
Rating ConsensusHold
Number of Analyst Covering3
Hanmi Financial Business Overview & Revenue Model
Company DescriptionHanmi Financial Corporation (HAFC) is a holding company headquartered in Los Angeles, California. It operates primarily through its wholly owned subsidiary, Hanmi Bank, which provides a range of financial services to small and medium-sized businesses, as well as individuals. The bank focuses on offering commercial banking products, including loans, deposit services, and cash management solutions. Hanmi Bank serves a diverse customer base with a strong presence in the Korean-American community across the United States, with branches in major metropolitan areas.
How the Company Makes MoneyHanmi Financial makes money primarily through its subsidiary, Hanmi Bank, by offering a variety of financial products and services. The bank's key revenue streams include interest income from loans and mortgages, which are extended to both commercial and individual clients. Additionally, the company generates income from fees and service charges associated with deposit accounts, transaction processing, and cash management services. Hanmi Bank also earns revenue from investment securities and other financial instruments. The bank's focus on the Korean-American community and its extensive branch network in key regions contribute significantly to its earnings. Strategic partnerships and community engagement further enhance its business operations and revenue generation.
Hanmi Financial Financial Statement Overview
Summary
Hanmi Financial exhibits solid financial health with consistent revenue growth and profitability. The balance sheet reflects stable leverage and good returns on equity. However, cash flow management faced challenges recently, with no free cash flow in 2024, indicating potential issues in cash management.Income Statement
Hanmi Financial demonstrates strong profitability with a net profit margin of 15.60% and consistent revenue growth over the years. Though the EBIT margin is relatively low at 2.70% for 2024, the company has maintained a positive trajectory in total revenue from previous years, showcasing stability in its income generation capabilities.78
Positive
Balance Sheet
The balance sheet of Hanmi Financial reflects a moderate debt-to-equity ratio of 0.54, indicating manageable leverage. The equity ratio stands at 9.54%, suggesting a moderate reliance on equity financing. Return on equity is robust at 8.49%, highlighting efficient use of shareholders' equity, though slightly reduced from prior years.72
Positive
Cash Flow
Cash flow analysis reveals challenges, with the operating cash flow to net income ratio being unavailable for 2024 due to missing data. Historically, free cash flow has been positive, but the lack of free cash flow in 2024 indicates potential cash management issues. Prior years showed positive free cash flow to net income ratios, reflecting effective cash generation relative to net income.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 233.50M | 249.16M | 271.85M | 235.55M | 224.00M | Gross Profit |
| 229.94M | 237.91M | 271.85M | 225.97M | 213.98M | EBIT |
| -281.76M | 15.37M | 161.84M | 135.49M | 59.49M | EBITDA |
| 0.00 | 0.00 | 155.78M | 8.06M | 9.63M | Net Income Common Stockholders |
| 62.20M | 80.04M | 101.39M | 98.68M | 42.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 304.80M | 1.17B | 1.21B | 1.52B | 1.15B | Total Assets |
| 7.68B | 7.57B | 7.38B | 6.86B | 6.20B | Total Debt |
| 393.14M | 455.01M | 779.41M | 352.51M | 268.97M | Net Debt |
| 88.34M | 152.69M | 426.99M | -256.46M | -122.88M | Total Liabilities |
| 6.95B | 6.87B | 6.74B | 6.22B | 5.62B | Stockholders Equity |
| 732.17M | 701.89M | 637.51M | 643.42M | 577.04M |
| Cash Flow | Free Cash Flow | |||
| 51.33M | 105.38M | 145.38M | 91.00M | 55.81M | Operating Cash Flow |
| 53.95M | 107.80M | 147.31M | 93.73M | 60.20M | Investing Cash Flow |
| -107.47M | -209.99M | -881.51M | -447.04M | -407.59M | Financing Cash Flow |
| 56.00M | 52.10M | 477.65M | 570.43M | 617.55M |
Hanmi Financial Technical Analysis
Positive
23.49
Price Trends
22.35
Positive
23.03
Negative
21.74
Positive
Market Momentum
0.25
Negative
57.80
Neutral
79.93
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 23.49 is above the 20-day moving average (MA) of 21.77, above the 50-day MA of 22.35, and above the 200-day MA of 21.74, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 57.80 is Neutral, neither overbought nor oversold. The STOCH value of 79.93 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 38 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $723.76M | 16.25 | 19.66% | 0.73% | 16.18% | 13.78% | |
73 Outperform | $708.27M | 9.08 | 13.55% | 3.30% | 12.26% | -6.93% | |
73 Outperform | $709.82M | 11.02 | 8.84% | 4.34% | 5.19% | -10.86% | |
72 Outperform | $622.26M | 8.89 | 11.84% | 1.45% | 40.43% | 545.45% | |
67 Neutral | $668.50M | 10.93 | 10.33% | 4.24% | 14.18% | 22.19% | |
64 Neutral | $12.64B | 9.74 | 8.05% | 17044.60% | 12.66% | -4.62% | |
55 Neutral | $673.90M | 14.82 | 6.26% | ― | 22.18% | 277.02% |
* Financial Sector Average
Performance Comparison
HAFC
Hanmi Financial
23.49
8.07
52.33%
CAC
Camden National
39.59
8.87
28.87%
MBWM
Mercantile Bank
43.62
5.51
14.46%
EQBK
Equity Bancshares
39.44
5.63
16.65%
ESQ
Esquire Financial Holdings
85.84
36.56
74.19%
NBBK
NB Bancorp, Inc.
17.46
2.49
16.63%
Hanmi Financial Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 4.31%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong financial performance, notable deposit and loan growth, and successful strategic initiatives. However, there were challenges such as a decline in C&I loan production and a downgrade of a CRE loan. Overall, the positive highlights and successful strategic expansions are offset by certain operational challenges.Q1-2025 Updates
Positive Updates
Strong Net Income Growth
Net income for Q1 2025 was $17.7 million or $0.58 per diluted share, representing an increase of 17% and 16% respectively compared to Q1 2024.
Net Interest Margin Expansion
The company achieved its third consecutive quarter of net interest margin expansion, increasing by 11 basis points to 3.02%.
Deposit and Loan Growth
Total loans grew to $6.28 billion, a 0.5% increase on a linked quarter basis. Deposits also grew by 3% in the first quarter, driven by new commercial accounts and contributions from new branches.
USKC Initiative Success
Deposits from the USKC initiative increased significantly and now represent 15% of total deposits, up from 13% at the end of 2024.
Opening of New Branch in Duluth, Georgia
A new branch was successfully opened in Duluth, Georgia, marking an expansion into a rapidly growing market with a significant Korean community.
Negative Updates
C&I Loan Production Decline
C&I loan production during the first quarter was $42 million, a decrease of $18 million or 30% from the previous quarter.
CRE Loan Downgrade
A CRE loan was downgraded to nonperforming status, leading to an increase in the provision for operating loss expense.
Slight Increase in Nonperforming Assets
The ratio of nonperforming assets to total assets increased slightly during the first quarter.
SBA Trade Premium Decline
Trade premiums for SBA loan sales declined by 71 basis points to 7.82%.
Company Guidance
During Hanmi Financial Corporation's first quarter 2025 conference call, several key metrics were highlighted that reflect the company's strong financial performance and strategic initiatives. Net income for the quarter was $17.7 million, or $0.58 per diluted share, marking an increase of 17% and 16% respectively compared to the same period in 2024. Hanmi achieved its third consecutive quarter of net interest margin expansion, which rose by 11 basis points to 3.02%, driven by reduced funding costs. Loan growth was recorded at $6.28 billion, a 0.5% increase on a linked quarter basis, while deposits grew by 3%, propelled by new commercial accounts and contributions from new branches. The bank maintained strong credit quality with an allowance for credit losses stable at 1.12% of loans. Noninterest income grew by 5%, primarily due to SBA loan sales, and the efficiency ratio improved to 55.69%, the best performance since the fourth quarter of 2023. The company also noted significant progress in its USKC initiative, with deposits from this segment rising to 15% of total deposits. Hanmi's strategic focus remains on generating low to mid-single-digit loan growth, expanding its C&I portfolio, and maintaining strong asset quality.Hanmi Financial Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Hanmi Financial Shares Growth Strategies in Presentation
Neutral
Mar 11, 2025
On March 11, 2025, Hanmi Financial Corporation distributed a slide presentation to analysts and prospective investors, detailing its operating and growth strategies along with financial performance. The presentation, part of a Current Report on Form 8-K, is intended to furnish information without being deemed as filed for regulatory purposes, and does not imply the information is material or complete for investment decisions.
Executive/Board Changes
Hanmi Financial Extends CEO and CFO Contracts
Positive
Mar 5, 2025
On March 4, 2025, Hanmi Financial Corporation and its subsidiary Hanmi Bank extended the employment agreements of key executives. The employment agreement for Bonita I. Lee, President and CEO, was extended to April 28, 2028, with automatic annual renewals unless notice is given. Similarly, the agreement for Romolo C. Santarosa, Senior Executive Vice President and CFO, was extended to December 31, 2027, also with automatic renewals. These extensions aim to ensure leadership stability within the company.
Executive/Board Changes
Hanmi Financial Appoints Christine P. Ball to Board
Positive
Mar 3, 2025
On March 3, 2025, Hanmi Financial Corporation announced the appointment of Christine P. Ball to its Board of Directors, effective March 1, 2025. With over 20 years of experience in corporate, commercial, and private banking, Ms. Ball’s expertise in credit and risk management is expected to enhance Hanmi’s financial stewardship and growth strategies. Her appointment to various committees within the company signals a strategic move to strengthen Hanmi’s commitment to sound financial practices.
DividendsBusiness Operations and StrategyFinancial Disclosures
Hanmi Financial Highlights Growth and Community Focus
Positive
Feb 20, 2025
On February 20, 2025, Hanmi Financial Corporation shared a presentation with analysts and prospective investors that highlighted its operating and growth strategies, as well as its financial performance. The company continues to demonstrate strong financial health with significant growth in deposits and loans, disciplined credit administration, and a focus on community support, evidenced by an increased cash dividend and a commitment to community reinvestment efforts.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.