Hanmi Financial (HAFC) Stock Forecast & Price Target

Hanmi Financial Corp reported a robust 7% growth in deposits on a last-quarter annualized basis, highlighting significant increases across various segments such as certificates of deposit (CDs) and non-interest-bearing accounts. Additionally, the bank achieved a 2% growth in loans, driven by improved line utilization and strategic management of lower payoffs, despite a decline in overall loan production. The increased production target for Small Business Administration (SBA) loans, raised to $45 million-$50 million, along with an anticipated gain related to mortgage gains on sales, further underscores the bank's positive outlook and growth trajectory.

Hanmi Financial's stock outlook is negatively influenced by a reduction in estimated earnings per share (EPS) for 2025 and 2026, now projected at $2.40 and $2.80, respectively, due to increased expectations for loan loss provisions and non-interest expenses. Additionally, the bank anticipates low to mid-single digit growth in both loans and deposits for 2025, indicating a lack of robust expansion in its core operations. The recent charge-off of $8.6 million related to a syndicated CBD office credit has further strained asset quality, with the allowance for credit losses decreasing by 6 basis points to 1.06%.