Hanmi Financial’s latest numbers set the stage

Hanmi Financial (HAFC) has just wrapped up FY 2025 with Q4 revenue of US$69.2 million and EPS of US$0.73, capping a trailing twelve month run that totals US$255.7 million in revenue and EPS of US$2.55. Over the past few quarters, revenue has moved from US$56.2 million in Q3 2024 to US$59.9 million in Q4 2024, then to US$60.1 million in Q1 2025 and US$57.6 million in Q2 2025 before reaching US$68.8 million in Q3 and US$69.2 million in Q4, while quarterly EPS tracked from US$0.49 to US$0.59, then US$0.59, US$0.50, US$0.73 and US$0.73 over the same stretch. With that backdrop and a trailing net profit margin of 29.8%, the latest report gives investors a clearer view of how earnings quality and efficiency are feeding into the current equity story.

See our full analysis for Hanmi Financial.

With the headline figures set, the next step is to see how these results compare with the widely followed narratives around Hanmi’s valuation, growth outlook and risk profile, and where the numbers either support or push back on those views.

Margins and earnings stay solid at 29.8% net

• On a trailing basis, Hanmi’s net profit margin sits at 29.8%, compared with 26.8% a year ago, and earnings over that period are reported to have grown 23.3% while the five year earnings trend shows a 2.4% annual decline.
• Bulls often point to this kind of margin profile as a sign of a resilient business. However, the contrast between the strong past year and the weaker five year record means investors still have to weigh whether the recent 23.3% earnings growth is part of a durable shift or a period that simply looks better than the longer history.
  • Supporters can highlight that a near 30% margin gives some room for earnings to absorb pressure without immediately eroding profitability.
  • More cautious investors may focus on that 2.4% annual earnings decline over five years and ask how representative the last twelve months really are.

Loan quality and NIM trends show mixed signals

• Across 2025, reported net interest margin moved from 3.02% in Q1 to 3.07% in Q2 and 3.22% in Q3, while non performing loans on the trailing twelve month view sat at US$19.4 million at Q3 2025 after being US$35.6 million at Q1 2025 and US$14.3 million at Q4 2024.
• What stands out for a more cautious, bearish reading is the way these numbers pull in different directions, because a higher net interest margin usually helps earnings, but changes in non performing loans across the last six quarters still leave investors monitoring how credit quality evolves rather than treating the loan book as a simple bright spot.
  • Some skeptics may argue that the move from US$35.6 million in non performing loans at Q1 2025 down to US$19.4 million at Q3 2025 still leaves that figure above the US$14.3 million level seen at Q4 2024.
  • At the same time, a net interest margin that reached 3.22% in Q3 2025 gives the bank more earnings power from its loan book, which can offset part of the risk if credit costs change.

Have a closer look at how these credit and margin trends fit into the broader thesis for HAFC before you decide what the story means for you as an investor. 📊 Read the full Hanmi Financial Consensus Narrative.

P/E of 9.6x and US$44.75 DCF fair value keep valuation in focus

• Hanmi trades on a trailing P/E of 9.6x compared with 11.8x for the US banks industry and 13.2x for peers, and the DCF fair value cited is US$44.75 versus a current share price of US$24.77, while analysts’ average price target is US$31.75.
• Supporters of a bullish view often highlight this gap to both the DCF fair value and the US$31.75 analyst target. However, the same dataset also reminds you that earnings over the past five years declined 2.4% a year, so the valuation argument leans heavily on the recent 23.3% earnings growth and forecasts of 12.4% yearly earnings growth and 11.2% yearly revenue growth continuing from here.
  • On one side, the combination of a P/E below industry and peer averages and a share price that sits well under the DCF fair value and analyst target supports the bullish claim that the stock is pricing in a lot of caution.
  • On the other, a flagged unstable dividend record and that negative five year earnings trend give bears specific reasons to question how much weight to put on the recent trailing numbers when judging valuation.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Hanmi Financial's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Hanmi’s 2.4% annual earnings decline over five years, flagged dividend instability and mixed credit signals give you clear reasons to question how durable the recent momentum is.

If that mix of patchy long term growth and income uncertainty bothers you, shift your focus toward steadier names by checking out our stable growth stocks screener (2169 results) today and see which companies keep earnings and revenue on a more consistent track.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.