Current Analysis: Hanmi Financial Corporation

Space Grey Ipad Air With Graph on Brown Wooden TableImage Source: PexelsHanmi Financial Corp (HAFC) is a Los Angeles-based bank that caters to Korean-Americans and other multi-ethnic communities across California, Colorado, Georgia, Illinois, New Jersey, New York, Texas, Virginia, and Washington.The bank mainly focuses on small businesses and commercial and real estate loans. Hanmi also offers trade-finance products. The bank has several lending offices outside California and plans to expand outside the state mainly through acquisitions.The Bank’s revenues are derived from interest and fees on loans, interest, and dividends on the securities portfolio, service charges on deposit accounts, and sales of SBA loans.The company was founded in 1982 and is headquartered in Los Angeles, California.Three key data points gaugeHanmi Financial Corp or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys best tell whether any company has made, is making, and will make money.HAFC PriceOver the past year, Hanmi’s share price decreased about 19.75% from $24.26 to $19.47 as of Wednesday’s market close.If Hanmi Financial trades in the range of $14.00 to $25.00 this next year, its recent $19.47 share price might rise to $22.00  by next year. Of course, Hanmi’s price could drop about the same $2.53 estimated amount or more.My annual upside estimate of $2.53 however, is about $0.20 under the average one-year price gains over the past three years.HAFC DividendHanmi Financial Corp has paid Quarterly variable dividends since September 17, 2013.  Hanmi’s most recent Q dividend of $0.25 was paid on November 22, 2013, to shareholders of record on November 3rd. The forward-looking $1.00 annual dividend yields 5.14% at Wednesday’s $19.47 share price.HAFC ReturnsTo put it all together, add the annual dividend of  $1.00 to the price upside of $2.53 to find a $3.53 gross gain.At Tuesday’s $19.47 share price, a little under $1000 would buy 51 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.20 per share.Subtracting that likely $0.20 brokerage cost from the $3.53 gross gain produces a net gain of $3.33 X 51 shares = $169.83 for a 17% estimated net gain.You might choose to pounce on Hanmi Financial Corp. It is a 41-year-old Los Angeles-based, niche-market focused banking-firm. Furthermore, the estimated $51.40 dividend income from $1k invested is almost 2.64 times greater than Hanmi’s $19.47 single share price.The exact track of Hanmi Financial Corp’s ongoing future price and dividend is yet to be known.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: Fidus Investment Corporation
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