LOS ANGELES - Hanmi Financial (NASDAQ:HAFC) Corporation (NASDAQ:HAFC), the holding company for Hanmi Bank, announced a quarterly cash dividend of $0.25 per share for the fourth quarter of 2024. The dividend is payable on November 20, 2024, to shareholders of record at the close of business on November 4, 2024.
Hanmi Financial, based in Los Angeles, California, operates Hanmi Bank, which caters to multi-ethnic communities with a network of 32 full-service branches and eight loan production offices across various states including California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia. The bank's primary focus is on providing real estate, commercial, SBA, and trade finance lending services to small and middle market businesses.
This dividend declaration follows Hanmi's strategic efforts to manage capital and provide returns to its shareholders. The payment marks a continuation of the company’s practice of returning value to its stockholders and reflects its financial position and commitment to maintaining a strong balance sheet.
The press release also contains forward-looking statements regarding Hanmi's anticipated future operating and financial performance, business strategies, and other expectations. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from those projected. Factors that may influence Hanmi's future performance include economic conditions, market volatility, consumer behavior, demographic shifts, competition, interest rate fluctuations, technological changes, regulatory changes, and other operational risks.
Investors are cautioned that forward-looking statements involve risks and uncertainties, including those detailed in the company's filings with the U.S. Securities and Exchange Commission, such as its Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent reports.
The information in this article is based on a press release statement from Hanmi Bank.
In other recent news, Hanmi Financial Corporation reported robust financial results for the third quarter of 2024. The company's net income reached $14.9 million, or $0.49 per diluted share, bolstered by an expanded net interest margin and growth across various loan sectors. CEO Bonnie Lee revealed strategic initiatives, including the Corporate Korea initiative and new branch openings in Atlanta and Seoul, despite the Koreatown Plaza branch closure.
The company's total loans grew by 2%, with significant increases in commercial real estate, commercial and industrial, and residential loans. Noninterest income rose by 5% to $8.4 million, while noninterest expenses saw a slight decrease. Management anticipates low to mid-single-digit loan growth for the year and expects expense increases due to seasonal advertising and promotion costs.
These recent developments underscore Hanmi Financial's growth trajectory and strategic positioning. However, it's worth noting the slight increase in the allowance for credit losses to 1.11% and the closure of the Koreatown Plaza branch. As per analysts, the company's future plans will depend on market conditions, with a focus on maintaining a balance between portfolio spread income and sales opportunities.
InvestingPro Insights
Hanmi Financial Corporation's recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 4.64% as of the latest available information. This attractive yield is supported by Hanmi's consistent dividend history, with InvestingPro Tips highlighting that the company has maintained dividend payments for 12 consecutive years and has raised its dividend for 3 consecutive years.
The bank's financial performance has been robust, with a price-to-earnings ratio of 9.68, suggesting that the stock may be undervalued relative to its earnings. This valuation metric, combined with the fact that Hanmi is trading near its 52-week high, indicates investor confidence in the company's prospects.
Despite facing challenges such as weak gross profit margins, as noted in the InvestingPro Tips, Hanmi has demonstrated resilience. The company's strong return over the last month and large price uptick over the last six months reflect positive market sentiment. Additionally, analysts predict that Hanmi will remain profitable this year, which bodes well for its ability to maintain its dividend policy.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Hanmi Financial Corporation, providing deeper insights into the company's financial health and market position.
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