On Thursday, DA Davidson adjusted its outlook on Hanmi Financial Corp (NASDAQ:HAFC), reducing the price target from the previous $20.00 to $18.00. The firm retained its Neutral rating on the bank's stock. The revision comes after Hanmi Financial reported another quarter experiencing a double-digit net interest margin (NIM) compression, which decreased by 14 basis points to 2.78%.
The analyst from DA Davidson noted that while the NIM compression has been significant, there are indications that the rate of this compression is expected to decelerate. The firm anticipates a stable to higher NIM for Hanmi Financial in the latter half of the year. This projection is based on the financial results and trends observed in the bank's recent performance.
In terms of asset quality, Hanmi Financial displayed stability with a quarter-over-quarter decrease in non-performing assets (NPAs) and total classified loans. These factors contributed to DA Davidson's decision to maintain the Neutral rating while adjusting the price target to reflect the recent financial metrics.
The report from DA Davidson underscores the performance and expectations for Hanmi Financial as the bank navigates through the year. The analyst's remarks highlight key financial indicators that are crucial for investors to monitor, particularly the NIM trends and asset quality, which can influence the bank's financial health and stock valuation.
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