Hanmi Financial (NASDAQ:HAFC) Posts Earnings Results, Beats Estimates By $0.02 EPS

Hanmi Financial (NASDAQ:HAFC) announced its quarterly earnings data on Tuesday. The bank reported $0.79 EPS for the quarter, topping analysts’ consensus estimates of $0.77 by $0.02, Zacks reports. Hanmi Financial had a return on equity of 10.31% and a net margin of 18.05%.The business had revenue of $72.21 million during the quarter, compared to the consensus estimate of $74.03 million.

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 Stock Performance

Shares of Hanmi Financial stock opened at $32.47 on Wednesday. The firm has a market capitalization of $966.63 million, a P/E ratio of 12.12 and a beta of 0.72. Hanmi Financial has a 52 week low of $22.00 and a 52 week high of $33.50. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 0.16. The firm’s 50 day moving average is $31.22 and its two-hundred day moving average is $28.79.

Hanmi Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, May 20th. Investors of record on Monday, May 4th were issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date of this dividend was Monday, May 4th. Hanmi Financial’s dividend payout ratio is 41.79%.

Wall Street Analyst Weigh In

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

Insider Buying and Selling

In other news, insider Matthew Fuhr sold 3,300 shares of the business’s stock in a transaction that occurred 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 completion of the sale, the insider owned 34,002 shares in the company, valued at approximately $1,048,281.66. The trade was a 8.85% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Anthony I. Kim sold 5,333 shares of the company’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $30.73, for a total transaction of $163,883.09. Following the completion of the transaction, the insider owned 41,615 shares of the company’s stock, valued at approximately $1,278,828.95. The trade was a 11.36% decrease in their position. The disclosure for this sale is available in the SEC filing. 2.12% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Hanmi Financial

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp grew its holdings in shares of Hanmi Financial by 0.3% during the fourth quarter. State Street Corp now owns 1,349,873 shares of the bank’s stock worth $36,487,000 after purchasing an additional 4,651 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Hanmi Financial by 3.1% in 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 during the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Hanmi Financial by 30.0% in 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 during the period. AQR Capital Management LLC boosted its position in shares of Hanmi Financial by 6.5% in the 4th quarter. AQR Capital Management LLC now owns 701,540 shares of the bank’s stock valued at $18,963,000 after purchasing an additional 42,555 shares during the period. Finally, Ameriprise Financial Inc. grew its stake in 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 during the last quarter. 88.66% of the stock is owned by hedge funds and other 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.