Hanmi Financial (HAFC) AI Stock Analysis

• Market Cap: $762.19M
• Dividend Yield: 4.25%
• Average Volume (3M): 175.47K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.00
• Revenue Growth: 3.34%
• EPS Growth: -1.93%
• Country: US
• Employees: 597
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.50
• Shares Outstanding: 30,126,028
• 10 Day Avg. Volume: 179,932
• 30 Day Avg. Volume: 175,473
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 2.85
• Enterprise Value/Ebitda: 6.69
• 1Y Price Target: $27.38
• Price Target Upside: 9.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $26.00 ▲(4.25% Upside)

Hanmi Financial's overall stock score reflects a strong financial performance, attractive valuation, and positive corporate events. While technical indicators suggest a neutral to slightly bearish trend, the company's strategic focus and robust market positioning support its potential for sustainable growth.

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 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	429.17M	429.51M	397.56M	308.01M	256.80M	265.56M
Gross Profit	231.02M	229.08M	245.16M	271.01M	259.58M	177.14M
EBITDA	98.45M	95.07M	121.37M	153.11M	151.58M	70.45M
Net Income	64.71M	62.20M	80.04M	101.39M	98.68M	42.20M
Balance Sheet
Total Assets	7.73B	7.68B	7.57B	7.38B	6.86B	6.20B
Cash, Cash Equivalents and Short-Term Investments	423.93M	1.21B	1.17B	1.21B	1.52B	1.15B
Total Debt	248.30M	393.14M	455.01M	479.41M	352.51M	268.97M
Total Liabilities	6.98B	6.95B	6.87B	6.74B	6.22B	5.62B
Stockholders Equity	751.49M	732.17M	701.89M	637.51M	643.42M	577.04M
Cash Flow
Free Cash Flow	47.72M	51.33M	105.38M	145.38M	91.00M	55.81M
Operating Cash Flow	49.81M	53.95M	107.80M	147.31M	93.73M	60.20M
Investing Cash Flow	-128.47M	-107.47M	-209.99M	-881.51M	-447.04M	-407.59M
Financing Cash Flow	151.63M	56.00M	52.10M	477.65M	570.43M	617.55M

Hanmi Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 24.94 is above the 20-day moving average (MA) of 24.39, above the 50-day MA of 24.37, and above the 200-day MA of 23.23, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 56.98 is Neutral, neither overbought nor oversold. The STOCH value of 60.08 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
EQBK	81 Outperform	$815.42M	10.49	12.24%	1.42%	31.22%	533.61%
ESQ	79 Outperform	$828.33M	17.94	19.30%	0.70%	16.76%	12.84%
NBBK	78 Outperform	$701.41M	14.43	6.92%	0.37%	17.31%	251.27%
CAC	75 Outperform	$694.07M	13.00	8.47%	4.14%	22.21%	6.20%
MBWM	74 Outperform	$798.46M	9.77	13.77%	3.04%	8.72%	-0.45%
HAFC	72 Outperform	$762.19M	11.72	8.82%	4.25%	3.34%	-1.93%
Sector *	68 Neutral	$17.81B	11.87	10.24%	3.74%	9.75%	1.30%

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.