Lowey Dannenberg is investigating Hanmi Bank (“Hanmi” or the “Company”) (NASDAQ: HAFC) and certain of its officers and/or directors for potential violation of federal securities laws or other unlawful business practices in connection with its regulatory reporting of its financial results.
On January 28, 2020, the Company released its fourth quarter financial results, missing analysts’ earnings predictions and disappointing investors. The quarterly report informed investors that Hanmi increased their previously disclosed loan loss provision by additional $6.9 million, bringing the total provision expense to $22.6. During the earnings call following the release of the financial results, Hanmi’s President and CEO, Bonnie Lee, explained that the “[n]et income in fourth quarter was significantly affected by the troubled loan relationship, consisting of [$39.7 million] loan.” According to Lee, “a current appraisal on the personal property securing the relationship” required that the specific allowance for that loan be increased by $6.9 million in the fourth quarter. Ms. Lee also stated in the press release that, “We continue to work with the borrower on an orderly resolution to the relationship and the borrower has continued payments, reducing the relationship to $39.7 million from $40.7 million at midyear.”
The next day, Kroll Bond Rating Agency released a comment on Hanmi’s fourth quarter results, observing that Hanmi’s then-most recent results represented the second time profitability has been negatively impacted from this specific relationship and that the news came “unexpected.” The market also reacted negatively. Following this news, the price of the Company’s shares fell $1.77 per share, or over 9%, to close at $16.99 per share on January 29, 2020.
If you are a shareholder of Hanmi who suffered a loss, we encourage you to contact attorney Andrea Farah of Lowey Dannenberg at (914) 733-7256 or email@example.com to learn more about this investigation or to discuss your options. For more information, you can also visit the investigation page on our website, lowey.com/securities.