Hanmi Financial (NASDAQ:HAFC) Issues Quarterly Earnings Results

Hanmi Financial (NASDAQ:HAFC) issued its quarterly earnings data on Tuesday. The bank reported $0.79 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.77 by $0.02, Zacks reports. The business had revenue of $72.21 million for the quarter, compared to the consensus estimate of $74.03 million. Hanmi Financial had a return on equity of 11.27% and a net margin of 19.82%.

Here are the key takeaways from Hanmi Financial’s conference call:

• Hanmi reported second-quarter net income of $23.5 million and EPS of $0.79, with ROAA rising to 1.2% and ROE improving to 11.1%. Management said these gains reflected solid earnings growth, disciplined execution, and strong credit quality.
• Deposits grew 2.3% sequentially, led by a 5.2% increase in non-interest-bearing balances, which rose to 31% of total deposits. Management highlighted continued strength in the core funding base, especially from commercial and Corporate Korea clients.
• The company continued to diversify its loan book, with C&I loans up 1.6% sequentially and 28% year over year, now representing 18% of total loans. Hanmi said it expects C&I growth, along with CRE, to be the main driver of loan growth in the second half.
• Asset quality remained strong, with non-performing loans at 0.15% of total loans and non-performing assets at 0.12% of total assets. Management noted one isolated CRE credit downgrade, but said the loan is well collateralized and overall credit trends remain favorable.
• Hanmi’s Corporate Korea initiative continued to gain traction, with deposits increasing 6.2% to $1.2 billion and loan balances reaching $826 million. The company said the segment remains a meaningful growth opportunity and differentiator.

Hanmi Financial Price Performance

Shares of HAFC stock opened at $31.40 on Thursday. Hanmi Financial has a 52-week low of $22.00 and a 52-week high of $33.50. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.98 and a current ratio of 0.98. The firm has a market capitalization of $934.78 million, a P/E ratio of 10.57 and a beta of 0.72. The stock has a 50 day moving average price of $31.26 and a 200 day moving average price of $28.82.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on HAFC. Piper Sandler boosted their target price on Hanmi Financial from $32.00 to $35.00 and gave the company an “overweight” rating in a research report on Monday, April 27th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Hanmi Financial in a research note on Wednesday, June 24th. Brean Capital reiterated a “neutral” rating and set a $32.00 price objective on shares of Hanmi Financial in a research report on Thursday, May 28th. Capital One Financial set a $32.00 price objective on shares of Hanmi Financial in a research report on Thursday, May 28th. Finally, Keefe, Bruyette & Woods increased their target price on shares of Hanmi Financial from $31.50 to $32.00 and gave the company a “market perform” rating in a research note on Thursday, April 9th. Two analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $32.10.

Insider Buying and Selling at Hanmi Financial

In other news, insider Anthony I. Kim sold 5,333 shares of Hanmi Financial stock in a transaction on Monday, June 8th. The stock was sold at an average price of $30.73, for a total transaction of $163,883.09. Following the completion of the sale, the insider directly owned 41,615 shares in the company, valued at approximately $1,278,828.95. This trade represents a 11.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Matthew Fuhr sold 3,300 shares of the business’s stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $30.83, for a total transaction of $101,739.00. Following the sale, the insider directly owned 34,002 shares of the company’s stock, valued at $1,048,281.66. This represents a 8.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 2.12% of the company’s stock.

Hedge Funds Weigh In On Hanmi Financial

Hedge funds have recently added to or reduced their stakes in the stock. State Street Corp boosted its holdings in shares of Hanmi Financial by 0.3% in the fourth quarter. State Street Corp now owns 1,349,873 shares of the bank’s stock valued at $36,487,000 after purchasing an additional 4,651 shares during the period. Geode Capital Management LLC raised its position in Hanmi Financial by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 837,483 shares of the bank’s stock valued at $22,641,000 after purchasing an additional 25,143 shares in the last quarter. Goldman Sachs Group Inc. raised its position in Hanmi Financial by 30.0% during the 4th quarter. Goldman Sachs Group Inc. now owns 786,529 shares of the bank’s stock valued at $21,260,000 after purchasing an additional 181,509 shares in the last quarter. AQR Capital Management LLC grew its position in shares of Hanmi Financial by 6.5% during the 4th quarter. AQR Capital Management LLC now owns 701,540 shares of the bank’s stock worth $18,963,000 after buying an additional 42,555 shares in the last quarter. Finally, Ameriprise Financial Inc. grew its position in shares of Hanmi Financial by 2.1% during the 2nd quarter. Ameriprise Financial Inc. now owns 328,392 shares of the bank’s stock worth $8,105,000 after buying an additional 6,835 shares in the last quarter. 88.66% of the stock is currently owned by institutional investors.

About Hanmi Financial

Hanmi Financial Corporation is a bank holding company based in California, primarily operating through its wholly owned subsidiary, Hanmi Bank. Established in 1982 to serve the Korean‐American community in Los Angeles, the company has expanded its footprint to include branch locations throughout California as well as markets in Illinois, Texas and Washington State. Hanmi Bank offers a comprehensive suite of commercial and consumer banking products designed to meet the needs of small and medium‐sized businesses, professionals and individual clients.

On the commercial banking side, Hanmi Bank provides business checking and savings accounts, lines of credit, commercial real estate lending and SBA‐guaranteed loans.