NasdaqGS:HAFC

Stock Analysis Report

Executive Summary

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States.


Snowflake Analysis

Excellent balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Hanmi Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HAFC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

HAFC

-0.08%

US Banks

2.0%

US Market


1 Year Return

-9.8%

HAFC

15.5%

US Banks

23.6%

US Market

Return vs Industry: HAFC underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: HAFC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

HAFCIndustryMarket
7 Day0.7%-0.08%2.0%
30 Day-5.6%-1.6%3.9%
90 Day6.1%9.2%12.0%
1 Year-5.6%-9.8%18.9%15.5%26.2%23.6%
3 Year-36.6%-43.2%34.6%25.1%53.2%43.3%
5 Year8.2%-7.5%86.1%65.2%75.7%56.3%

Price Volatility Vs. Market

How volatile is Hanmi Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hanmi Financial undervalued compared to its fair value and its price relative to the market?

33.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HAFC ($19.56) is trading below our estimate of fair value ($29.94)

Significantly Below Fair Value: HAFC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HAFC is poor value based on its PE Ratio (14.8x) compared to the Banks industry average (12.8x).

PE vs Market: HAFC is good value based on its PE Ratio (14.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: HAFC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: HAFC is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Hanmi Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAFC's forecast earnings growth (12.9% per year) is above the savings rate (1.7%).

Earnings vs Market: HAFC's earnings (12.9% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: HAFC's earnings are forecast to grow, but not significantly.

Revenue vs Market: HAFC's revenue (3.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: HAFC's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HAFC's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has Hanmi Financial performed over the past 5 years?

-0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAFC has high quality earnings.

Growing Profit Margin: HAFC's current net profit margins (22.4%) are lower than last year (27.9%).


Past Earnings Growth Analysis

Earnings Trend: HAFC's earnings have declined by -0.2% per year over the past 5 years.

Accelerating Growth: HAFC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HAFC had negative earnings growth (-29.2%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: HAFC's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hanmi Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HAFC has a low level of unsold assets or inventory.

Debt Coverage by Assets: HAFC's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

Asset Level: HAFC's level of assets compared to its equity is low.

Allowance for Bad Loans: HAFC has a low allowance for bad loans.

Low Risk Liabilities: HAFC's liabilities are made up of primarily low risk sources of funding.

Loan Level: HAFC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HAFC's loans are broadly funded by customer deposits.

Level of Bad Loans: HAFC has an appropriate level of bad loans (1.42%)


Next Steps

Dividend

What is Hanmi Financial's current dividend yield, its reliability and sustainability?

4.92%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: HAFC's dividend (4.91%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: HAFC's dividend (4.91%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HAFC has been paying a dividend for less than 10 years.

Growing Dividend: HAFC's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.5%), HAFC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HAFC's dividends in 3 years are forecast to be covered by earnings (56.5% payout ratio).


Next Steps

Management

What is the CEO of Hanmi Financial's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Bonnie Lee (56yo)

0.7yrs

Tenure

US$443,811

Compensation

Ms. Bonita I. Lee, also known as Bonnie, has been Chief Executive Officer of Hanmi Financial Corporation and Hanmi Bank since May 3, 2019 and its President since June 2018. She served as Chief Operating Of ...


CEO Compensation Analysis

Compensation vs Market: Bonnie's total compensation ($USD443.81K) is below average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Bonnie's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: HAFC's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

56yo

Average Age

Experienced Board: HAFC's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$856,85418 May 19
Joseph Rho
EntityIndividual
Shares37,500
Max PriceUS$23.05
SellUS$840,19218 Apr 19
Joseph Rho
EntityIndividual
Shares37,500
Max PriceUS$22.55
SellUS$1,439,83613 Apr 19
Joseph Rho
EntityIndividual
Shares64,499
Max PriceUS$22.41
SellUS$11205 Apr 19
Joseph Rho
EntityIndividual
Shares5
Max PriceUS$22.30
SellUS$234,29605 Apr 19
Joseph Rho
EntityIndividual
Shares10,496
Max PriceUS$22.37

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ron Santarosa (63yo)

    Senior EVP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$860.98k
  • Bonnie Lee (56yo)

    President

    • Tenure: 0.7yrs
    • Compensation: US$443.81k
  • Greg Kim (58yo)

    Chief Administrative Officer & Executive VP of Hanmi Bank

    • Tenure: 6.4yrs
    • Compensation: US$500.45k
  • Mike Park (56yo)

    Executive VP & Chief Credit Risk Officer

    • Tenure: 2.8yrs
    • Compensation: US$223.04k
  • Matthew Fuhr (56yo)

    Executive VP & Chief Credit Administrative Officer of Hanmi Bank

    • Tenure: 2.8yrs
    • Compensation: US$381.48k
  • Vivian Kim

    Senior VP


    Board Members

    • Scott Diehl (57yo)

      Independent Director

      • Tenure: 1.9yrs
      • Compensation: US$104.92k
    • Michael Yang (56yo)

      Independent Director

      • Tenure: 3.9yrs
      • Compensation: US$116.87k
    • Bonnie Lee (56yo)

      President

      • Tenure: 0.7yrs
      • Compensation: US$443.81k
    • John Ahn (54yo)

      Chairman

      • Tenure: 1yrs
      • Compensation: US$121.22k
    • Kiho Choi (63yo)

      Independent Director

      • Tenure: 1.8yrs
      • Compensation: US$93.12k
    • Harry Chung (49yo)

      Independent Director

      • Tenure: 3.9yrs
      • Compensation: US$123.62k
    • Tom Williams (56yo)

      Independent Director

      • Tenure: 3.6yrs
      • Compensation: US$117.12k
    • David Rosenblum (66yo)

      Vice Chairman

      • Tenure: 1yrs
      • Compensation: US$122.12k
    • Christie Chu (54yo)

      Independent Director

      • Tenure: 4.8yrs
      • Compensation: US$121.02k

    Company Information

    Hanmi Financial Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Hanmi Financial Corporation
    • Ticker: HAFC
    • Exchange: NasdaqGS
    • Founded: 2000
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: US$601.445m
    • Shares outstanding: 30.81m
    • Website: https://www.hanmi.com

    Number of Employees


    Location

    • Hanmi Financial Corporation
    • 3660 Wilshire Boulevard
    • Penthouse Suite A
    • Los Angeles
    • California
    • 90010
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    HAFCNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 1994
    HF7NDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1994

    Biography

    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, including 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 that include automobile loans, secured and unsecured personal loans, home improvement loans, home equity lines of credit, unsecured lines of credit, and credit cards; 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 January 24, 2019, it operated a network of 39 full-service branches and 9 loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia. The company was incorporated in 2000 and is headquartered in Los Angeles, California. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 23:36
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.