Hanmi Financial Corp Q2 net income falls on credit loss expense

Overview

• Hanmi Q2 net income falls to $15.1 mln due to credit loss expense

• Asset quality improves vs the prior quarter

• Deposits grow 1.7% qtr/qtr, with noninterest-bearing demand deposits at June 30, were 31.3% of total deposits

Outlook

• Hanmi expects "strong" loan pipeline in second half of 2025

• Company aims to deepen client relationships and expand market presence

• Hanmi focuses on leveraging balance sheet for sustainable growth

Result Drivers

• CREDIT LOSS EXPENSE - Net income impacted by $7.6 mln credit loss expense, per CEO Bonnie Lee

• ASSET QUALITY IMPROVEMENT - Criticized loans dropped 71.8% due to loan upgrades and charge-offs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Hanmi Financial Corp is $27.50, about 5.7% above its July 21 closing price of $25.92

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX5JwGC8