Hanmi Financial
Market Cap
US$273.8m
Last Updated
2020/06/01 02:19 UTC
Data Sources
Company Financials +
Executive Summary
Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and undervalued.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.9%
HAFC
8.2%
US Banks
3.0%
US Market
1 Year Return
-57.1%
HAFC
-20.1%
US Banks
9.9%
US Market
Return vs Industry: HAFC underperformed the US Banks industry which returned -19.6% over the past year.
Return vs Market: HAFC underperformed the US Market which returned 9.5% over the past year.
Shareholder returns
| HAFC | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.9% | 8.2% | 3.0% |
| 30 Day | -12.7% | 3.2% | 8.2% |
| 90 Day | -41.4% | -20.6% | 0.4% |
| 1 Year | -54.8%-57.1% | -17.4%-20.1% | 12.4%9.9% |
| 3 Year | -61.9%-66.4% | -8.5%-15.6% | 31.0%22.3% |
| 5 Year | -53.7%-61.3% | 12.0%-1.4% | 58.1%40.3% |
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
1 week ago | Simply Wall St
Insider Buying: The Hanmi Financial Corporation (NASDAQ:HAFC) Independent Chairman Just Bought 30% More Shares3 weeks ago | Simply Wall St
Why It Might Not Make Sense To Buy Hanmi Financial Corporation (NASDAQ:HAFC) For Its Upcoming Dividend1 month ago | Simply Wall St
How Does Investing In Hanmi Financial Corporation (NASDAQ:HAFC) Impact The Volatility Of Your Portfolio?Valuation
Is Hanmi Financial undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HAFC ($9.03) is trading below our estimate of fair value ($20.94)
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 (13.6x) compared to the Banks industry average (9.7x).
PE vs Market: HAFC is good value based on its PE Ratio (13.6x) compared to the US market (15.8x).
Price to Earnings Growth Ratio
PEG Ratio: HAFC is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: HAFC is good value based on its PB Ratio (0.5x) compared to the US Banks industry average (0.8x).
Next Steps
Future Growth
How is Hanmi Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
33.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HAFC's forecast earnings growth (33.4% per year) is above the savings rate (2.2%).
Earnings vs Market: HAFC's earnings (33.4% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HAFC's revenue (6.8% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: HAFC's revenue (6.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if HAFC's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Hanmi Financial performed over the past 5 years?
-5.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HAFC has high quality earnings.
Growing Profit Margin: HAFC's current net profit margins (12.9%) are lower than last year (28.4%).
Past Earnings Growth Analysis
Earnings Trend: HAFC's earnings have declined by -5.8% 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 (-64.5%) over the past year, making it difficult to compare to the Banks industry average (2.9%).
Return on Equity
High ROE: HAFC's Return on Equity (3.7%) is considered low.
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
Financial Institutions Analysis
Asset Level: HAFC's Assets to Equity ratio (10.2x) is moderate.
Allowance for Bad Loans: HAFC has a sufficient allowance for bad loans (127%).
Low Risk Liabilities: 90% of HAFC's liabilities are made up of primarily low risk sources of funding.
Loan Level: HAFC has an appropriate level of Loans to Assets ratio (80%).
Low Risk Deposits: HAFC's Loans to Deposits ratio (98%) is appropriate.
Level of Bad Loans: HAFC has an appropriate level of bad loans (1.1%).
Next Steps
Dividend
What is Hanmi Financial's current dividend yield, its reliability and sustainability?
5.32%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HAFC's dividend (5.32%) is higher than the bottom 25% of dividend payers in the US market (1.69%).
High Dividend: HAFC's dividend (5.32%) is in the top 25% of dividend payers in the US market (4.52%)
Stability and Growth of Payments
Stable Dividend: HAFC has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: HAFC's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (145.1%), HAFC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Bonnie Lee (56yo)
1.08yrs
Tenure
US$1,419,624
Compensation
Ms. Bonita I. Lee, also known as Bonnie, has been Chief Executive Officer of Hanmi Financial Corporation and Hanmi Bank since May 3, 2019 and its President since June 2018. She served as Chief Operating Of ...
CEO Compensation Analysis
Compensation vs Market: Bonnie's total compensation ($USD1.42M) is about average for companies of similar size in the US market ($USD1.38M).
Compensation vs Earnings: Bonnie's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.08yrs | US$1.42m | 0.20% $542.0k | |
| Senior EVP & CFO | 4.58yrs | US$944.11k | 0.13% $344.1k | |
| Executive VP & Chief Credit Risk Officer of Hanmi Bank | 5.17yrs | US$340.68k | 0.045% $122.2k | |
| Executive VP & Chief Credit Administrative Officer of Hanmi Bank | 3.25yrs | US$410.58k | 0.071% $194.4k | |
| Senior VP | no data | no data | no data | |
| Chief Administrative Officer & Executive VP of Hanmi Bank | 6.83yrs | US$500.45k | no data | |
| Executive VP & Chief Banking Officer of Hanmi Bank | no data | no data | 0.11% $287.9k | |
| Senior VP & Chief Risk Officer of Hanmi Bank | 0.58yr | no data | no data |
3.9yrs
Average Tenure
56yo
Average Age
Experienced Management: HAFC's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.08yrs | US$1.42m | 0.20% $542.0k | |
| Independent Director | 2.33yrs | US$123.71k | 0.027% $73.0k | |
| Independent Director | 4.33yrs | US$111.31k | 0.033% $89.1k | |
| Independent Chairman | 1.08yrs | US$130.11k | 0.13% $350.9k | |
| Independent Director | 2.17yrs | US$113.21k | 0.045% $122.7k | |
| Independent Director | 4.33yrs | US$122.26k | 0.046% $125.2k | |
| Independent Director | 4yrs | US$116.01k | 0.019% $52.9k | |
| Independent Vice Chairman | 1.42yrs | US$122.21k | 0.053% $145.6k | |
| Independent Director | 5.25yrs | US$120.26k | 0.032% $88.9k |
2.3yrs
Average Tenure
56yo
Average Age
Experienced Board: HAFC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HAFC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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: 1982
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$273.797m
- Shares outstanding: 30.32m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HAFC | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Jun 1994 |
| HF7N | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jun 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 February. 06, 2020, it operated a network of 35 full-service branches and 9 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.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/01 02:19 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.