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Hanmi Financial Corp. (HAFC)
NASDAQ:HAFC
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Hanmi Financial (HAFC) AI Stock Analysis

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HAFC

Hanmi Financial

(NASDAQ:HAFC)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
$27.00
â–²(10.43% Upside)
Hanmi Financial's strong earnings call performance and reasonable valuation are the most significant factors driving the stock score. The company's robust revenue growth and profitability, combined with a stable balance sheet, contribute positively. However, technical indicators suggest a neutral trend, and challenges in cash flow management slightly offset these strengths.
Positive Factors
Revenue Growth
Consistent revenue growth reflects Hanmi Financial's ability to expand its market presence and enhance profitability, driven by effective management of interest margins and operational efficiency.
Improved Asset Quality
Improved asset quality through significant loan upgrades and reduced delinquencies enhances financial stability and reduces risk, supporting long-term growth and profitability.
Net Interest Margin Expansion
Expansion of net interest margin indicates effective interest rate management, contributing to increased profitability and competitive positioning in the banking sector.
Negative Factors
Net Income Decline
A decline in net income due to increased credit loss expenses could impact profitability, requiring strategic adjustments to maintain financial performance and shareholder value.
Higher Net Charge-Offs
Increased net charge-offs, particularly from nonaccrual loans, highlight potential credit risk issues that could strain financial resources and require enhanced risk management strategies.
Decreased Loan Production
A decrease in loan production may signal challenges in market demand or competitive positioning, potentially affecting future revenue streams and growth opportunities.

Hanmi Financial (HAFC) vs. SPDR S&P 500 ETF (SPY)

Hanmi Financial Business Overview & Revenue Model

Company DescriptionHanmi Financial Corporation (HAFC) is a financial services holding company headquartered in Los Angeles, California, primarily operating through its subsidiary, Hanmi Bank. The company focuses on providing a range of banking services, including commercial banking, personal banking, and mortgage banking, with an emphasis on serving the needs of the Asian-American community and small to medium-sized businesses. Hanmi Financial offers products such as loans, deposits, and various financial services tailored to meet the diverse needs of its customer base.
How the Company Makes MoneyHanmi Financial generates revenue primarily through interest income from loans and investments, which constitutes a significant portion of its earnings. The company offers various loans, including commercial real estate loans, business loans, and consumer loans, earning interest on the amounts loaned out. Additionally, Hanmi Bank receives fee income from services such as account maintenance, transaction fees, and other banking services. The bank's interest income is supplemented by non-interest income sources, including fees from wealth management services and mortgage origination. Strategic partnerships with local businesses and community organizations enhance its market presence and customer base, contributing to its overall profitability.

Hanmi Financial Earnings Call Summary

Earnings Call Date:Oct 21, 2025
(Q3-2025)
|
Next Earnings Date:Jan 27, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant increases in net income and loan production, improved net interest margins, and successful expansion of strategic initiatives like USKC. Despite a slight decrease in SBA loan production, the overall tone was very positive, underscored by a strong focus on growth and asset quality.
Q3-2025 Updates
Positive Updates
Significant Increase in Net Income
Net income for the third quarter was $22.1 million or $0.73 per diluted share, a substantial increase from $15.1 million or $0.50 per share in the second quarter.
Strong Loan Production Growth
Total loans increased to $6.53 billion, up 3.5% on a linked quarter basis, with loan production rising 73% to $571 million.
Improved Net Interest Margin
Net interest margin expanded by 15 basis points to 3.22% due to higher average yields on loans and lower funding costs.
Decrease in Credit Loss Expense
Credit loss expense dropped by $5.5 million quarter over quarter, leading to net loan recoveries of $500,000 for the third quarter.
Successful Expansion of the USKC Initiative
USKC loan balances increased by 8.2% to $910 million, and deposit balances for USKC customers increased by 9.5%, exceeding $1 billion for the first time.
Negative Updates
Slight Decrease in SBA Loan Production
SBA loan production decreased slightly to approximately $45 million from the prior quarter.
Company Guidance
During Hanmi Financial Corporation's third quarter 2025 conference call, the company reported robust financial performance, highlighting several key metrics. Net income for the third quarter rose to $22.1 million, or $0.73 per diluted share, up from $15.1 million, or $0.50 per share, in the prior quarter. This improvement was largely due to increased net interest income and a reduction in credit loss expense. The company's return on average assets was 1.12%, while return on average equity stood at 10.69%. Pre-provision net revenues increased by 16.4% to $47 million, underscoring the strength of their core operations. The net interest margin expanded by 15 basis points to 3.22%, driven by higher average yields on loans and lower funding costs. Total loans increased by 3.5% to $6.53 billion, with significant loan production up 73% to $571 million. Deposits grew by 0.6% during the quarter, supported by new commercial accounts and market expansion, and the efficiency ratio improved to a two-year low of 52.65%. The company continued to focus on maintaining strong asset quality, reducing criticized and non-performing loans, and achieving a notable reduction in net charge-offs.

Hanmi Financial Financial Statement Overview

Summary
Hanmi Financial demonstrates a strong financial position characterized by steady revenue growth, robust profit margins, and efficient cash flow management. Despite some reliance on debt, the company maintains a healthy equity base and generates significant returns on equity. The financial statements suggest stability and profitability, although attention to liability management could further enhance financial resilience.
Income Statement
75
Positive
Hanmi Financial's income statement shows a consistent revenue growth over the years, with steady gross and net profit margins. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of approximately 53.8% and a net profit margin of about 15.1%. While revenue growth has slowed compared to previous years, the company maintains a stable EBIT and EBITDA margin at 21.4% and 22.9% respectively, indicating strong operational efficiency.
Balance Sheet
68
Positive
The balance sheet reflects solid stockholders' equity, contributing to a favorable equity ratio of roughly 9.7%. However, the debt-to-equity ratio is 0.33, showing a manageable but notable reliance on debt. Return on equity (ROE) is strong at around 8.6% in the TTM, suggesting effective use of equity in generating profits. The overall financial health is stable, though there is room for improvement in terms of reducing liabilities.
Cash Flow
60
Neutral
Cash flow analysis reveals a positive trend in operating cash flow, with a solid free cash flow to net income ratio of 0.74, indicating good cash generation relative to profits. While free cash flow growth has been volatile, the operating cash flow to net income ratio of 0.77 in the TTM suggests efficient cash management and operational effectiveness.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue432.25M429.51M397.56M308.01M256.80M265.56M
Gross Profit232.88M229.08M245.16M271.01M259.58M177.14M
EBITDA99.29M95.07M121.37M153.11M151.58M70.45M
Net Income65.38M62.20M80.04M101.39M98.68M42.20M
Balance Sheet
Total Assets7.86B7.68B7.57B7.38B6.86B6.20B
Cash, Cash Equivalents and Short-Term Investments1.30B1.21B1.17B1.21B1.52B1.15B
Total Debt297.15M393.14M455.01M479.41M352.51M268.97M
Total Liabilities7.10B6.95B6.87B6.74B6.22B5.62B
Stockholders Equity762.83M732.17M701.89M637.51M643.42M577.04M
Cash Flow
Free Cash Flow26.88M51.33M105.38M145.38M91.00M55.81M
Operating Cash Flow28.76M53.95M107.80M147.31M93.73M60.20M
Investing Cash Flow-159.89M-107.47M-209.99M-881.51M-447.04M-407.59M
Financing Cash Flow198.10M56.00M52.10M477.65M570.43M617.55M

Hanmi Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price24.45
Price Trends
50DMA
24.63
Negative
100DMA
24.20
Positive
200DMA
23.28
Positive
Market Momentum
MACD
-0.21
Positive
RSI
50.33
Neutral
STOCH
48.11
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 24.45 is below the 20-day moving average (MA) of 24.46, below the 50-day MA of 24.63, and above the 200-day MA of 23.28, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 48.11 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 40 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$672.41M10.1615.62%3.59%0.54%11.11%
75
Outperform
$684.10M12.497.93%4.03%5.39%8.80%
74
Outperform
$725.18M8.6713.77%3.30%8.72%-0.45%
71
Outperform
$726.04M11.178.82%4.34%3.34%-1.93%
71
Outperform
$713.00M10.189.27%2.97%7.40%2.01%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
$699.56M12.0111.69%2.41%9.68%13.46%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HAFC
Hanmi Financial
24.45
3.85
18.69%
CCBG
Capital City Bank
40.17
5.71
16.57%
CCNE
Cnb Financial
24.21
-0.54
-2.18%
MBWM
Mercantile Bank
44.91
2.47
5.82%
TRST
TrustCo Bank
36.21
4.31
13.51%
MCBS
MetroCity Bankshares
26.20
-3.37
-11.40%

Hanmi Financial Corporate Events

Business Operations and StrategyFinancial Disclosures
Hanmi Financial Highlights Growth Strategies in Presentation
Positive
Jul 29, 2025

On July 29, 2025, Hanmi Financial Corporation shared a slide presentation with analysts and prospective investors, detailing its operating and growth strategies along with financial performance. The presentation highlighted the company’s significant progress in diversifying its loan portfolio and maintaining strong capital ratios, which positions it well above regulatory requirements. This strategic focus and financial health underscore Hanmi’s robust market positioning and commitment to stakeholder value.

Dividends
Hanmi Financial Announces Q3 2025 Cash Dividend
Positive
Jul 24, 2025

On July 24, 2025, Hanmi Financial Corporation announced a cash dividend of $0.27 per share for the third quarter of 2025, payable on August 20, 2025, to shareholders recorded by August 4, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders and may impact its financial operations and market positioning.

Executive/Board ChangesShareholder Meetings
Hanmi Financial Holds Annual Stockholders Meeting
Neutral
May 28, 2025

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.

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.Date of analysis: Oct 22, 2025