LOS ANGELES - Hanmi Financial (NASDAQ:HAFC) Corporation (NASDAQ:HAFC), the holding entity for Hanmi Bank, declared on Thursday a quarterly cash dividend of $0.25 per share for the second quarter of 2024. Stockholders on record by May 6, 2024, will receive the dividend on May 22, 2024.
Concurrently, the company's Board of Directors has authorized a new stock repurchase program, allowing the buyback of up to 5% of its outstanding shares, equating to roughly 1.5 million shares.
The repurchase initiative, as detailed in the announcement, grants Hanmi the ability to procure shares via open market transactions, private agreements, or block trades, as well as under any trading plan that may be established in line with Rule 10b5-1 of the Securities and Exchange Commission.
The timing and volume of repurchases are at management's discretion, based on various factors, including market conditions, stock price, alternative capital deployments, and the company's financial performance. Notably, the program may be adjusted, paused, or terminated at any time due to a range of considerations, such as market conditions and liquidity.
Bonnie Lee, President and CEO of Hanmi, expressed that the new share repurchase authorization reflects the company's commitment to judicious capital management and intends to deliver value to shareholders through dividends and share repurchases. She emphasized Hanmi's dedication to sustaining robust capital levels.
Hanmi Bank, headquartered in Los Angeles, operates a network of 35 full-service branches and eight loan production offices across various states, serving diverse community needs. The bank specializes in real estate, commercial, SBA, and trade finance lending tailored to small and middle-market businesses.
This announcement is based on a press release statement from Hanmi Bank. The bank's forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ from projected outcomes. These include economic conditions, market volatility, spending and saving habits, and regulatory changes, among others.
Hanmi Financial Corporation has not obligated itself to purchase any specific number of shares under the repurchase program.
InvestingPro Insights
As Hanmi Financial Corporation (NASDAQ:HAFC) announces its dividend and share repurchase program, investors may find additional context in the company's financial metrics and market performance. According to InvestingPro, Hanmi Financial Corporation is currently trading at a low earnings multiple with a P/E ratio of just 6.2, suggesting the stock could be undervalued compared to its earnings potential. This is further reinforced by the adjusted P/E ratio for the last twelve months as of Q1 2024, which stands at 6.38.
Moreover, Hanmi's commitment to returning value to shareholders is evident through its dividend history. The company has not only raised its dividend for 3 consecutive years but has also maintained dividend payments for 12 consecutive years. The current dividend yield is notably high at 6.61%, as of early 2024, which is compelling for income-focused investors.
Despite a challenging environment underscored by a revenue decline of 11.29% over the last twelve months as of Q1 2024, the company remains profitable with a reported operating income margin of 42.38%. This profitability is recognized by analysts who predict Hanmi will remain profitable this year, as reflected in the InvestingPro Tips. Investors considering capitalizing on Hanmi's financial position can find additional insights and tips on InvestingPro, with a total of 7 tips available to guide their investment decisions.
To gain deeper insights and access the full range of InvestingPro Tips, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This offer could help investors make more informed decisions as they navigate Hanmi's financial landscape and the broader market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.