Romolo Santarosa, the Chief Financial Officer of Hanmi Financial Corp (NASDAQ:HAFC), recently executed a significant stock transaction. On November 6th, Santarosa sold 25,000 shares of Hanmi Financial's common stock at a weighted average price of $25.7495, amounting to a total sale value of $643,737. The shares were sold in multiple transactions, with prices ranging from $25.55 to $25.995.
In a related transaction on the same day, Santarosa acquired 25,000 shares through the exercise of stock options at a price of $23.31 per share, totaling $582,750. Following these transactions, Santarosa's direct ownership of Hanmi Financial stock decreased to 63,126 shares.
These transactions were part of the company's 2021 Equity Compensation Plan, which includes shares that vest over three years from the grant date of April 1, 2024.
In other recent news, Hanmi Financial Corporation announced a $0.25 per share dividend for the fourth quarter of 2024, demonstrating its ongoing commitment to returning value to its shareholders. This coincides with the company's robust financial performance in the third quarter of the same year, where it reported a net income of $14.9 million, or $0.49 per diluted share. The company's total loans grew by 2%, with significant increases in commercial real estate, commercial and industrial, and residential loans. Noninterest income rose by 5% to $8.4 million, while noninterest expenses saw a slight decrease.
Recent developments include the launch of strategic initiatives, such as the Corporate Korea initiative, and the opening of new branches in Atlanta and Seoul, notwithstanding the closure of the Koreatown Plaza branch. Analysts indicate that the company's future plans will be contingent on market conditions, focusing on maintaining a balance between portfolio spread income and sales opportunities. However, it's worth noting the slight increase in the allowance for credit losses to 1.11%. These developments, along with the company's strong Q3 results, underscore Hanmi Financial's growth trajectory and strategic positioning.
InvestingPro Insights
Hanmi Financial Corp (NASDAQ:HAFC) has been showing strong market performance recently, which aligns with CFO Romolo Santarosa's recent stock transactions. According to InvestingPro data, HAFC has demonstrated impressive returns, with a 33.4% price total return over the past month and a substantial 64.68% return over the last year. This positive momentum is further reflected in the stock's current price, which stands at 95.06% of its 52-week high.
InvestingPro Tips highlight that HAFC has raised its dividend for 3 consecutive years and has maintained dividend payments for 12 consecutive years. This consistent dividend policy may be attractive to income-focused investors, especially considering the current dividend yield of 4.04%.
Despite these positive indicators, it's worth noting that InvestingPro Tips also point out that HAFC suffers from weak gross profit margins and net income is expected to drop this year. These factors may provide context for Santarosa's decision to sell shares while also exercising options.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Hanmi Financial Corp, providing a deeper understanding of the company's financial health and market position.
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