We are investigating Hanmi Financial Corporation (HAFC) (“Hanmi” or the “Company”) for potential violations of the federal securities laws.
On January 28, 2020, Hanmi issued a press release announcing the Company’s financial results for the fourth fiscal quarter of 2019. Therein, Hanmi reported net income of $3.1 million for the quarter, which included “a $6.9 million specific provision for loan and lease losses related to [a] previously identified $39.7 million troubled loan relationship.” According to Hanmi’s President and Chief Executive Officer Bonnie Lee, “[w]ith the loans comprising this relationship maturing on December 31, 2019, [Hanmi] received current appraisals on the personal property securing the relationship and ha[s] provided for a specific allowance at the lower range of the appraised values.” On this news, Hanmi’s stock price fell $1.77 per share, or 9.43%, to close at $16.99 per share on January 29, 2020.