Hanmi Financial (HAFC) Stock Forecast & Price Target

Hanmi Financial is experiencing low-to-MSD loan growth in 2026, offset by lower payoffs and increase in criticized loans, but anticipate further NIM expansion due to lower deposit costs and potential for loan yield improvement. With a target of low-to-mid single digit loan growth in the coming year and strong trade finance fees, Hanmi Financial remains in a stable position with a neutral rating and $29.50 PT. Despite a decline in EOP loans and deposits, the bank's NIM expanded due to lower interest-bearing liabilities costs and higher CD yields, positioning them for potential growth in the future.

Hanmi Financial is facing challenges in its core business of small business and commercial and real estate loans, as evidenced by the trimming of their EPS estimates for 2026 due to softer NII and higher LLP expectations. Furthermore, there are concerns about asset quality deterioration and negative impacts on the net interest margin due to competitive market pressures and sluggish loan demand, leading to a less profitable earning asset mix. These factors contribute to our negative outlook on Hanmi Financial's stock, with a target price of $34 based on a 2027E EPS of $3.38 and a valuation of 10.0x.