A well-capitalized, highly efficient niche regional bank trading below tangible book—where 2026 CD repricing and USKC deposits can drive a re-rating, if credit watch-items stay contained.
Overview
Hanmi Financial (HAFC) is a Los Angeles–based bank holding company for Hanmi Bank, founded to serve Korean-American clients but now operating as a diversified, multi-ethnic commercial bank with **32 branches and 8 LPOs** across key U.S. business corridors. Its earnings engine is primarily traditional banking—net interest income from CRE, C&I, SBA and residential lending funded by relationship deposits—supplemented by SBA-related fee income and other non-interest revenue. In 2025 the bank delivered a notable profitability rebound: **net income $76.1M (+22% YoY)** and **EPS $2.51**, powered by **NIM expansion to 3.15%** and a sharply improved **efficiency ratio of 54.7%**. Net interest income rose **16.5% to $236.2M** as management controlled funding costs and improved balance-sheet mix. Deposits remain strategically valuable, with **30.2% non-interest-bearing** on a **$6.68B** base—evidence of sticky relationships. Entering 2026, capital is strong (**CET1 ~12.05%**, **TCE/TA ~9.99%**) and management is executing a deliberate de-risking plan: reduce CRE concentration while accelerating C&I and USKC initiatives (USKC deposits now 15% of total). A **4% dividend increase** and ongoing buybacks reinforce the view that the franchise is healthy, though rising criticized loans introduce a credit-monitoring overhang.