Hanmi Financial Corp. : HAFC-US: Dividend Analysis : May 08th, 2017 (record date) : By the numbers : May 4, 2017

Our analysis is based on comparing Hanmi Financial Corp. with the following peers – Cullen/Frost Bankers, Inc., CoBiz Financial Inc., PacWest Bancorp, CVB Financial Corp., Pacific Mercantile Bancorp, Renasant Corporation, Heritage Commerce Corp, Westamerica Bancorporation, United Security Bancshares and F.N.B. Corporation (CFR-US, COBZ-US, PACW-US, CVBF-US, PMBC-US, RNST-US, HTBK-US, WABC-US, UBFO-US and FNB-US).

Hanmi Financial Corp.’s dividend yield is 2.44 percent and its dividend payout is 41.23 percent. This compares to a peer median dividend yield of 2.37 percent and a payout level of 46.84 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 50 out of a possible score of 100, lessens its attractiveness for dividend investors.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), HAFC-US paid a low quality dividend, which represents a yield of 2.44% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during 4 of these years — of these 1 was medium quality and 3 were low quality.
  • The ending cash balance, with a dividend coverage of 5.74x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to March 31, 2017), HAFC-US paid a low quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.09x), investing cash flow (coverage of -19.12x), issuance cash flow (coverage of 17.37x) and twelve-month prior cash (coverage of 5.36x), for a total dividend coverage of 6.40x.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0 0.64 0.96 1.39 2.27 2.44
Dividend Payout (%) 0 11.11 17.95 27.84 37.71 41.23

A complete list of metrics and analysis is available on the company page.

Company Profile

Hanmi Financial Corp. operates as a bank holding company, which provides commercial banking and financial services. The company operates through its subsidiary, Hanmi Bank. It provides deposit services which include business and personal checking accounts, savings accounts, negotiable order of withdrawal accounts, money market accounts and certificates of deposit. Hanmi Financial was founded on March 14, 2000 and is headquartered in Los Angeles, CA.


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