Hanmi Financial Corporation (HAFC) Suffers Large Loan and Lease Losses
On August 12, 2019, Hanmi announced that it would be unable to timely file its quarterly report due to an evaluation of “the classification of a single $40.7 million credit relationship… and the related adjustment to the allowance for loan and lease losses.” Then, on January 28, 2020, Hanmi reported net income of $3.1 million for the quarter, including an additional “$6.9 million specific provision for loan and lease losses related to a previously identified $39.7 million troubled loan relationship.” To secure the loan relationship, Hanmi disclosed that the Company “received current appraisals on the personal property… and have provided for a specific allowance in the lower range of the appraised values.” Since this news, Hanmi’s stock price has fallen 54%, currently trading at around $8.50 per share.
