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 third quarter of 2024. Shareholders on record by August 5, 2024, will receive the dividend on August 21, 2024.
The announcement comes as Hanmi continues to serve multi-ethnic communities across various states through a network of branches and loan production offices. The bank's operations span nine states with a focus on providing real estate, commercial, SBA, and trade finance lending to small and middle-market businesses.
Hanmi Bank's ability to distribute dividends is influenced by several factors, including regulatory considerations and the financial performance of both the bank and its parent company, Hanmi Financial Corporation. The bank's operations are also subject to risks such as economic conditions, market volatility, consumer behavior changes, competition, and interest rate fluctuations.
The bank has outlined these and other potential risks in its filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2023, and its subsequent quarterly reports.
Hanmi Financial Corporation reported a solid second quarter with a net income of $14.5 million, or $0.48 per diluted share. The company highlighted a substantial increase in new loan production, particularly in SBA loans, and a rise in non-interest income.
The company expects low to mid-single-digit loan growth for the year and anticipates a similar trajectory in the third quarter. The firm also revealed plans to participate in the 25th Annual KBW Community Bank Investor Conference.
InvestingPro Insights
As Hanmi Financial Corporation (NASDAQ: HAFC) announces its latest dividend, investors may be keen to understand the company's financial health and future prospects. According to InvestingPro data, Hanmi Financial has a market capitalization of $583.77 million and a price-to-earnings (P/E) ratio of 9.41, which suggests the stock might be undervalued compared to the overall market. The company's dividend yield stands at an attractive 5.15%, as of the latest available data, which is a compelling figure for income-seeking investors.
Looking at recent performance, Hanmi Financial has experienced a robust return over the last month, with a 24.74% increase, and over the last three months, with a 26.17% gain. This strong short-term performance is a positive sign for investors, indicating a bullish trend in the stock's price movement.
However, not all signals are positive. InvestingPro Tips highlight that three analysts have revised their earnings estimates downwards for the upcoming period, and the company suffers from weak gross profit margins. Additionally, net income is expected to drop this year, which could be a concern for those looking at the company's profitability in the near term.
Despite these challenges, Hanmi Financial has demonstrated a commitment to its shareholders by raising its dividend for 3 consecutive years and maintaining dividend payments for 12 consecutive years, a testament to its financial stability and dedication to returning value to its investors.
For those interested in deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/HAFC. Plus, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking even more valuable insights for your investment decisions.
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