Hanmi Financial (HAFC) AI Stock Analysis

• Market Cap: $769.80M
• Dividend Yield: 4.38%
• Average Volume (3M): 134.57K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.02
• Revenue Growth: 5.20%
• EPS Growth: -11.06%
• Country: US
• Employees: 597
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 0.58
• Shares Outstanding: 30,212,095
• 10 Day Avg. Volume: 208,170
• 30 Day Avg. Volume: 134,573
• PEG Ratio: 2.16
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.16
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 17.23
• 1Y Price Target: $26.50
• Price Target Upside: 4.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $29.00 ▲(13.81%Upside)

Hanmi Financial receives a solid score due to its strong financial performance, positive technical indicators, and encouraging earnings call. The company's fair valuation and attractive dividend yield further support its favorable outlook. While challenges exist, the overall prospects appear positive.

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 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, interest-bearing checking and savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. It also provides real estate loans, such as commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit, as well as international finance, and trade services and products comprising letters of credit, and import and export financing. In addition, the company offers consumer loans, secured and unsecured loans, home equity loans, residential mortgages, and credit cards; SBA and trade finance lending to small and middle market businesses; and small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. As of February 28, 2022, it operated a network of 35 full-service branches and 8 loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia. The company was founded in 1982 and is headquartered in Los Angeles, California.

How the Company Makes Money

Hanmi Financial Corporation generates revenue primarily through the interest income earned from its loan portfolio, which includes commercial real estate loans, commercial and industrial loans, and consumer loans. The company also earns non-interest income from fees associated with its deposit products and services, such as account maintenance fees, transaction fees, and service charges. Additionally, Hanmi Financial benefits from strategic partnerships with other financial institutions and service providers, enhancing its product offerings and expanding its customer base. The company also invests in securities, which contributes to its earnings through interest and dividends.

Hanmi Financial Financial Statement Overview

Summary

Hanmi Financial demonstrates solid financial health with consistent revenue growth and profitability. The balance sheet indicates stable leverage and good returns on equity. However, recent challenges in cash flow management slightly detract from its overall financial performance.

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.

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.

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.

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	233.50M	237.91M	271.85M	225.97M	213.98M
EBITDA	0.00	0.00	155.78M	8.06M	9.63M
Net Income	62.20M	80.04M	101.39M	98.68M	42.20M
Balance Sheet
Total Assets	7.68B	7.57B	7.38B	6.86B	6.20B
Cash, Cash Equivalents and Short-Term Investments	304.80M	1.17B	1.21B	1.52B	1.15B
Total Debt	393.14M	455.01M	779.41M	352.51M	268.97M
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

• Technical Analysis Sentiment: Positive
• Last Price: 25.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 25.48 is above the 20-day moving average (MA) of 23.43, above the 50-day MA of 23.20, and above the 200-day MA of 22.47, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 64.02 is Neutral, neither overbought nor oversold. The STOCH value of 90.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HAFC.

Hanmi Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESQ	79 Outperform	$824.91M	18.47	19.66%	0.74%	16.18%	13.78%
NBBK	77 Outperform	$680.80M	15.49	6.26%	―	22.18%	277.02%
HAFC	75 Outperform	$769.80M	11.94	8.82%	4.38%	5.20%	-11.06%
MBWM	75 Outperform	$776.21M	9.95	13.55%	3.19%	12.26%	-6.93%
EQBK	73 Outperform	$736.35M	10.66	11.84%	1.47%	40.27%	545.49%
CAC	71 Outperform	$707.86M	13.32	8.24%	4.14%	18.13%	4.86%
Sector *	67 Neutral	$16.85B	11.65	9.71%	3.90%	11.61%	-9.60%

Hanmi Financial Corporate Events

Hanmi Financial Holds Annual Stockholders Meeting

On May 28, 2025, Hanmi Financial held its annual stockholders meeting where several key decisions were made. Eleven board nominees were elected to serve until the 2026 Annual Meeting, and an advisory vote approved the executive compensation for the company’s Named Executive Officers. Additionally, an amendment to limit the liability of certain officers was approved, and Crowe LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (HAFC) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Hanmi Financial stock, see the HAFC Stock Forecast page.

Hanmi Financial Presents Growth Strategies to Investors

On May 6, 2025, Hanmi Financial Corporation shared a slide presentation with analysts and prospective investors, detailing its operating and growth strategies and financial performance. The presentation highlighted Hanmi’s successful diversification of its loan portfolio and strong capital management, positioning it well in the financial industry. The company has achieved significant growth in loans and deposits, with a 10% compound annual growth rate since 2013, and maintains strong corporate governance practices.