Hanmi Financial Reports Strong Q1 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy HAFC?
Source: seekingalpha
- Earnings Beat: Hanmi Financial's Q1 GAAP EPS of $0.75 exceeded expectations by $0.05, indicating robust profitability and boosting investor confidence in the company's financial health.
- Revenue Miss: Despite a 12.8% year-over-year revenue increase to $70.84 million, the figure fell short of expectations by $0.39 million, reflecting pressures from heightened market competition and economic uncertainties.
- Loan Production Growth: Loan production rose 0.8% quarter-over-quarter to $377.9 million, driven by a remarkable 64% increase in commercial and industrial loans, showcasing the company's proactive expansion strategy in the credit market.
- Enhanced Capital Returns: Hanmi returned $13.4 million to shareholders through $8.6 million in dividends and $4.8 million in share repurchases, demonstrating a strong commitment to shareholder value and effective capital management.
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Analyst Views on HAFC
Wall Street analysts forecast HAFC stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 29.570
Low
30.50
Averages
31.75
High
33.00
Current: 29.570
Low
30.50
Averages
31.75
High
33.00
About HAFC
Hanmi Financial Corporation is a holding company of Hanmi Bank (the Bank). The Bank serves multi-ethnic communities through its network of approximately 32 full-service branches, five loan production offices and three loan centers in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. The Bank is a California state-chartered financial institution. It specializes in real estate, commercial, small business administration (SBA) and trade finance lending to small and middle market businesses. The Bank originates loans for its own portfolio and for sale in the secondary market. Its lending activities include real estate loans (commercial property, construction, and residential property), commercial and industrial loans (commercial term, commercial lines of credit and international), equipment lease financing and SBA loans. It maintains a small construction portfolio of multifamily and commercial and industrial properties within its market areas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hanmi Financial Declares $0.28 Quarterly Dividend
- Quarterly Dividend Declaration: Hanmi Financial has declared a quarterly dividend of $0.28 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy, which is expected to bolster investor confidence.
- Dividend Yield: The forward yield of 3.79% provides relative attractiveness in the current market environment, potentially drawing in income-seeking investors and enhancing the stock's appeal.
- Record Date for Shareholders: The dividend will be payable on May 20, with a record date of May 4 and an ex-dividend date also set for May 4, ensuring shareholders receive their dividends promptly, reflecting the company's commitment to shareholder interests.
- Performance Metrics: Hanmi Financial's net interest margin reached 3.38% in Q1 2026, with loan growth expectations set at low to mid-single digits, demonstrating the company's adaptability in changing interest rate environments, although revenue slightly missed expectations, profitability remains stable.
See More
Hanmi (HAFC) Q1 2026 Earnings Call Transcript
See More
Hanmi Financial Q1 2026 Earnings Highlights
- Strong Deposit Growth: Hanmi Financial reported a 7% annualized growth in deposits for Q1, with noninterest-bearing deposits constituting 30% of total deposits, indicating effective liquidity management and customer confidence, which lays a solid foundation for future loan growth.
- Loan Origination Trends: While C&I loan originations surged by 64%, the overall loan portfolio experienced a slight decline due to higher-than-normal payoffs, suggesting that market demand volatility may impact future lending strategies.
- Improved Asset Quality: Nonperforming assets decreased by 38%, representing just 0.16% of total assets, reflecting effective credit monitoring and risk management practices, which enhance investor confidence and the overall financial health of the company.
- Net Income and Margin Expansion: The net income for Q1 was $22.6 million, or $0.75 per diluted share, with net interest margin expanding to 3.38%, indicating successful cost control and revenue growth, further solidifying the company's market position.
See More
Hanmi Financial Reports Strong Q1 Earnings
- Earnings Beat: Hanmi Financial's Q1 GAAP EPS of $0.75 exceeded expectations by $0.05, indicating robust profitability and boosting investor confidence in the company's financial health.
- Revenue Miss: Despite a 12.8% year-over-year revenue increase to $70.84 million, the figure fell short of expectations by $0.39 million, reflecting pressures from heightened market competition and economic uncertainties.
- Loan Production Growth: Loan production rose 0.8% quarter-over-quarter to $377.9 million, driven by a remarkable 64% increase in commercial and industrial loans, showcasing the company's proactive expansion strategy in the credit market.
- Enhanced Capital Returns: Hanmi returned $13.4 million to shareholders through $8.6 million in dividends and $4.8 million in share repurchases, demonstrating a strong commitment to shareholder value and effective capital management.
See More
Hanmi Financial Releases 2025 Annual Shareholder Letter
- Shareholder Letter Release: Hanmi Financial Corporation has released its 2025 annual shareholder letter titled 'Consistent Performance Through Strong Execution,' authored by CEO Bonnie Lee, highlighting the company's robust performance in diverse communities.
- Business Network Overview: Hanmi Bank operates 32 full-service branches, five loan production offices, and three loan centers across states including California and Texas, focusing on real estate, commercial, SBA, and trade finance lending to small and middle-market businesses.
- Market Positioning: Hanmi Bank emphasizes its commitment to serving multi-ethnic communities, reinforcing its significance in the small and middle-market sectors, thereby solidifying its position in the U.S. financial services industry.
- Investor Contact Information: Investor relations at Hanmi Financial are managed by CFO Romolo Santarosa and Lisa Fortuna from Financial Profiles, Inc., ensuring that investors receive timely information and support.
See More
Hanmi Financial Declares Increased Quarterly Dividend
- Dividend Increase: Hanmi Financial declared a quarterly dividend of $0.28 per share, reflecting a 3.7% increase from the previous $0.27, indicating ongoing improvements in cash flow and profitability, which is expected to boost investor confidence and attract more shareholders.
- Dividend Yield: The forward yield of 4.52% not only provides a substantial return for investors but also reflects the company's financial stability in the current economic environment, enhancing market attractiveness for its stock.
- Share Repurchase Expansion: The company expanded its existing share repurchase authorization by 1.5 million shares to approximately 2.3 million shares in total, aiming to enhance shareholder value by reducing the share count and demonstrating management's confidence in the company's future performance.
- Future Outlook: Hanmi Financial outlines a strategy for low to mid-single-digit loan growth and deposit expansion for 2026, indicating its proactive approach to market challenges and aiming to improve overall financial performance through robust growth strategies.
See More
Hanmi Financial Declares $0.28 Quarterly Dividend
- Quarterly Dividend Declaration: Hanmi Financial has declared a quarterly dividend of $0.28 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy, which is expected to bolster investor confidence.
- Dividend Yield: The forward yield of 3.79% provides relative attractiveness in the current market environment, potentially drawing in income-seeking investors and enhancing the stock's appeal.
- Record Date for Shareholders: The dividend will be payable on May 20, with a record date of May 4 and an ex-dividend date also set for May 4, ensuring shareholders receive their dividends promptly, reflecting the company's commitment to shareholder interests.
- Performance Metrics: Hanmi Financial's net interest margin reached 3.38% in Q1 2026, with loan growth expectations set at low to mid-single digits, demonstrating the company's adaptability in changing interest rate environments, although revenue slightly missed expectations, profitability remains stable.
See More
Hanmi (HAFC) Q1 2026 Earnings Call Transcript
See More
Hanmi Financial Q1 2026 Earnings Highlights
- Strong Deposit Growth: Hanmi Financial reported a 7% annualized growth in deposits for Q1, with noninterest-bearing deposits constituting 30% of total deposits, indicating effective liquidity management and customer confidence, which lays a solid foundation for future loan growth.
- Loan Origination Trends: While C&I loan originations surged by 64%, the overall loan portfolio experienced a slight decline due to higher-than-normal payoffs, suggesting that market demand volatility may impact future lending strategies.
- Improved Asset Quality: Nonperforming assets decreased by 38%, representing just 0.16% of total assets, reflecting effective credit monitoring and risk management practices, which enhance investor confidence and the overall financial health of the company.
- Net Income and Margin Expansion: The net income for Q1 was $22.6 million, or $0.75 per diluted share, with net interest margin expanding to 3.38%, indicating successful cost control and revenue growth, further solidifying the company's market position.
See More
Hanmi Financial Reports Strong Q1 Earnings
- Earnings Beat: Hanmi Financial's Q1 GAAP EPS of $0.75 exceeded expectations by $0.05, indicating robust profitability and boosting investor confidence in the company's financial health.
- Revenue Miss: Despite a 12.8% year-over-year revenue increase to $70.84 million, the figure fell short of expectations by $0.39 million, reflecting pressures from heightened market competition and economic uncertainties.
- Loan Production Growth: Loan production rose 0.8% quarter-over-quarter to $377.9 million, driven by a remarkable 64% increase in commercial and industrial loans, showcasing the company's proactive expansion strategy in the credit market.
- Enhanced Capital Returns: Hanmi returned $13.4 million to shareholders through $8.6 million in dividends and $4.8 million in share repurchases, demonstrating a strong commitment to shareholder value and effective capital management.
See More
Hanmi Financial Releases 2025 Annual Shareholder Letter
- Shareholder Letter Release: Hanmi Financial Corporation has released its 2025 annual shareholder letter titled 'Consistent Performance Through Strong Execution,' authored by CEO Bonnie Lee, highlighting the company's robust performance in diverse communities.
- Business Network Overview: Hanmi Bank operates 32 full-service branches, five loan production offices, and three loan centers across states including California and Texas, focusing on real estate, commercial, SBA, and trade finance lending to small and middle-market businesses.
- Market Positioning: Hanmi Bank emphasizes its commitment to serving multi-ethnic communities, reinforcing its significance in the small and middle-market sectors, thereby solidifying its position in the U.S. financial services industry.
- Investor Contact Information: Investor relations at Hanmi Financial are managed by CFO Romolo Santarosa and Lisa Fortuna from Financial Profiles, Inc., ensuring that investors receive timely information and support.
See More
Hanmi Financial Declares Increased Quarterly Dividend
- Dividend Increase: Hanmi Financial declared a quarterly dividend of $0.28 per share, reflecting a 3.7% increase from the previous $0.27, indicating ongoing improvements in cash flow and profitability, which is expected to boost investor confidence and attract more shareholders.
- Dividend Yield: The forward yield of 4.52% not only provides a substantial return for investors but also reflects the company's financial stability in the current economic environment, enhancing market attractiveness for its stock.
- Share Repurchase Expansion: The company expanded its existing share repurchase authorization by 1.5 million shares to approximately 2.3 million shares in total, aiming to enhance shareholder value by reducing the share count and demonstrating management's confidence in the company's future performance.
- Future Outlook: Hanmi Financial outlines a strategy for low to mid-single-digit loan growth and deposit expansion for 2026, indicating its proactive approach to market challenges and aiming to improve overall financial performance through robust growth strategies.
See More
