Hanmi Financial (HAFC) AI Stock Analysis

• Market Cap: $777.94M
• Dividend Yield: 3.84%
• Average Volume (3M): 167.75K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.87
• Revenue Growth: 3.34%
• EPS Growth: 15.52%
• Country: US
• Employees: 597
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.73
• Shares Outstanding: 29,955,307
• 10 Day Avg. Volume: 140,460
• 30 Day Avg. Volume: 167,752
• PEG Ratio: -0.54
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 13.82
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 3.05
• Enterprise Value/Ebitda: 7.01
• 1Y Price Target: $29.25
• Price Target Upside: 3.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $30.00 ▲(6.61% Upside)

Hanmi Financial's overall stock score reflects strong financial performance and positive technical indicators. The earnings call provided a boost with its positive sentiment and highlights of growth initiatives. While valuation is fair, the company's robust cash flow and strategic expansions position it well for future growth. Attention to declining revenue and ROE trends is necessary to sustain this momentum.

Positive Factors

Strong Cash Flow Generation

The significant increase in free cash flow indicates strong cash generation capabilities, supporting future investments and financial stability.

Loan Production Growth

Strong loan production growth demonstrates effective market penetration and demand for Hanmi's lending services, supporting revenue expansion.

Improved Net Interest Margin

An improved net interest margin indicates better profitability from lending activities, enhancing overall financial performance.

Negative Factors

Declining Revenue Growth

A declining revenue growth trend could hinder future profitability and market competitiveness if not addressed.

Decreasing Return on Equity

A declining ROE trend may indicate less efficient use of equity capital, potentially affecting investor confidence and capital raising.

Decreased Gross Profit Margin

A declining gross profit margin suggests potential cost management issues, which could impact long-term profitability if not addressed.

Hanmi Financial Business Overview & Revenue Model

Company Description

Hanmi Financial Corporation (HAFC) is a financial holding company based in the United States, primarily focused on providing banking and financial services through its wholly-owned subsidiary, Hanmi Bank. The company serves a diverse customer base, including individuals and small to medium-sized businesses, primarily in the Asian-American community. Hanmi Financial operates in the commercial banking sector, offering a range of products and services such as personal and commercial loans, mortgage lending, deposit accounts, treasury management services, and other financial solutions aimed at supporting its clients' financial needs.

How the Company Makes Money

Hanmi Financial generates revenue primarily through interest income from loans and leases, which constitutes a significant portion of its earnings. The company offers various types of loans, including commercial real estate loans, residential mortgages, and business loans, which yield interest payments over time. Additionally, Hanmi earns non-interest income from service fees associated with deposit accounts, transaction services, and other financial products. The bank also engages in investment activities, contributing to its revenue through gains on securities. Key partnerships with local businesses and community organizations enhance its customer outreach and service offerings, ultimately driving deposits and loan growth. Overall, the company's revenue model is centered around traditional banking activities while focusing on community-oriented services to strengthen its market position.

Hanmi Financial Financial Statement Overview

Summary

Hanmi Financial demonstrates solid financial performance with strong profitability and cash flow generation. Despite a decline in revenue growth and ROE, the company maintains healthy margins and a strong balance sheet with low leverage. The significant increase in free cash flow is a positive indicator for future investments and stability.

Income Statement

Hanmi Financial's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 4.39%, which is concerning. However, the company maintains a strong net profit margin of 17.55% and an EBIT margin of 35.63%, indicating efficient cost management and profitability. The gross profit margin has decreased significantly compared to previous years, which could be a potential risk if not addressed.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.25 in the TTM period, indicating low leverage. Return on equity is at 9.59%, which is moderate but shows a decline from previous years. The equity ratio remains strong, suggesting a solid capital structure. However, the declining ROE trend could be a concern if it continues.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth rate of 529.82% in the TTM period, demonstrating strong cash generation capabilities. The free cash flow to net income ratio is high at 93.43%, indicating efficient conversion of earnings into cash. The operating cash flow to net income ratio is not available, but overall, the cash flow position appears strong and supportive of future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	438.96M	429.51M	397.56M	308.01M	256.80M	265.56M
Gross Profit	246.35M	229.08M	245.16M	271.01M	259.58M	177.14M
EBITDA	107.20M	95.07M	121.37M	153.11M	151.58M	70.45M
Net Income	72.55M	62.20M	80.04M	101.39M	98.68M	42.20M
Balance Sheet
Total Assets	7.86B	7.68B	7.57B	7.38B	6.86B	6.20B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.21B	1.17B	1.21B	1.52B	1.15B
Total Debt	192.81M	393.14M	455.01M	479.41M	352.51M	268.97M
Total Liabilities	7.08B	6.95B	6.87B	6.74B	6.22B	5.62B
Stockholders Equity	779.55M	732.17M	701.89M	637.51M	643.42M	577.04M
Cash Flow
Free Cash Flow	167.87M	51.33M	105.38M	145.38M	91.00M	55.81M
Operating Cash Flow	170.10M	53.95M	107.80M	147.31M	93.73M	60.20M
Investing Cash Flow	-327.63M	-107.47M	-209.99M	-881.51M	-447.04M	-407.59M
Financing Cash Flow	85.42M	56.00M	52.10M	477.65M	570.43M	617.55M

Hanmi Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.14
• 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 28.14 is above the 20-day moving average (MA) of 27.00, above the 50-day MA of 25.75, and above the 200-day MA of 23.69, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 64.63 is Neutral, neither overbought nor oversold. The STOCH value of 84.95 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
TRST	80 Outperform	$791.50M	14.33	8.35%	3.34%	5.75%	20.52%
CCBG	76 Outperform	$716.89M	11.76	11.90%	2.33%	9.43%	17.64%
HAFC	75 Outperform	$777.94M	10.83	9.49%	3.84%	3.34%	15.52%
MBWM	73 Outperform	$716.30M	8.35	13.79%	3.11%	5.64%	6.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CCNE	66 Neutral	$720.96M	12.33	6.51%	2.74%	11.13%	-15.28%
MCBS	61 Neutral	$657.60M	9.94	15.62%	3.50%	-0.23%	10.95%

Hanmi Financial Corporate Events

Hanmi Financial Declares Fourth Quarter Cash Dividend

On October 24, 2025, Hanmi Financial Corporation announced that its Board of Directors declared a cash dividend of $0.27 per share for the fourth quarter of 2025. This dividend is scheduled to be paid on November 20, 2025, to stockholders of record as of November 4, 2025, reflecting the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (HAFC) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Hanmi Financial stock, see the HAFC Stock Forecast page.

Hanmi Financial’s Earnings Call Highlights Robust Growth

Hanmi Financial’s recent earnings call presented a very positive outlook, marked by strong financial performance and strategic growth initiatives. The company reported significant increases in net income and loan production, alongside improved net interest margins. Despite a minor dip in SBA loan production, the overall sentiment was one of optimism, with a clear focus on growth and maintaining asset quality.

Hanmi Financial Reports Strong Q3 2025 Results

Hanmi Financial Corporation, headquartered in Los Angeles, operates Hanmi Bank, which serves multi-ethnic communities across several states, specializing in real estate, commercial, SBA, and trade finance lending to small and middle-market businesses.

Hanmi Financial Appoints Daniel Medici to Board

On September 30, 2025, Hanmi Financial Corporation announced the appointment of Daniel J. Medici to the Board of Directors of both the company and its subsidiary, Hanmi Bank, effective October 1, 2025. Mr. Medici, who retired in February 2025 after a 36-year career with the Office of the Comptroller, brings extensive expertise in information technology, cybersecurity, and risk management. His appointment is expected to enhance Hanmi’s governance and oversight, supporting the company’s long-term growth strategies.

The most recent analyst rating on (HAFC) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Hanmi Financial stock, see the HAFC Stock Forecast page.