Hanmi Financial (HAFC) AI Stock Analysis

• Market Cap: $726.04M
• Dividend Yield: 4.34%
• Average Volume (3M): 136.31K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.97
• Revenue Growth: 3.34%
• EPS Growth: -1.93%
• Country: US
• Employees: 597
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.73
• Shares Outstanding: 30,126,028
• 10 Day Avg. Volume: 127,157
• 30 Day Avg. Volume: 136,311
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $27.88
• Price Target Upside: 14.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $27.00 ▲(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 Business Overview & Revenue Model

Company Description

Hanmi 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 Money

Hanmi 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	432.25M	429.51M	397.56M	308.01M	256.80M	265.56M
Gross Profit	232.88M	229.08M	245.16M	271.01M	259.58M	177.14M
EBITDA	99.29M	95.07M	121.37M	153.11M	151.58M	70.45M
Net Income	65.38M	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	1.30B	1.21B	1.17B	1.21B	1.52B	1.15B
Total Debt	297.15M	393.14M	455.01M	479.41M	352.51M	268.97M
Total Liabilities	7.10B	6.95B	6.87B	6.74B	6.22B	5.62B
Stockholders Equity	762.83M	732.17M	701.89M	637.51M	643.42M	577.04M
Cash Flow
Free Cash Flow	26.88M	51.33M	105.38M	145.38M	91.00M	55.81M
Operating Cash Flow	28.76M	53.95M	107.80M	147.31M	93.73M	60.20M
Investing Cash Flow	-159.89M	-107.47M	-209.99M	-881.51M	-447.04M	-407.59M
Financing Cash Flow	198.10M	56.00M	52.10M	477.65M	570.43M	617.55M

Hanmi Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCBS	75 Outperform	$672.41M	10.16	15.62%	3.59%	0.54%	11.11%
TRST	75 Outperform	$684.10M	12.49	7.93%	4.03%	5.39%	8.80%
MBWM	74 Outperform	$725.18M	8.67	13.77%	3.30%	8.72%	-0.45%
HAFC	71 Outperform	$726.04M	11.17	8.82%	4.34%	3.34%	-1.93%
CCNE	71 Outperform	$713.00M	10.18	9.27%	2.97%	7.40%	2.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CCBG	66 Neutral	$699.56M	12.01	11.69%	2.41%	9.68%	13.46%

Hanmi Financial Corporate Events

Hanmi Financial Highlights Growth Strategies in Presentation

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.

Hanmi Financial Announces Q3 2025 Cash Dividend

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.

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.