This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Bank Stocks Trading Below Book With Up To 85% Upside (Update 2)

9. Hanmi Financial

Shares of Hanmi Financial (HAFC) of Los Angeles closed at $8.60 Wednesday, returning 16% year-to-date, after last year's 20% decline.

The shares trade just below their Dec. 30 tangible book value of $9.02, having undergone a 1-for-8 reverse split on Dec. 19.

The company in November raised $77.1 million in common equity, net of expenses, and reported a strong regulatory Tier 1 leverage ratio of 13.34%, and a total risk-based capital ratio of 18.66%, as of Dec. 30.

Hanmi had $2.7 billion in total assets as of Dec. 30.

The company reported its fifth consecutive quarter profit, with fourth-quarter net income of $5.5 million, or 22 cents a share, compared to $5.3 million, or 28 cents a share, in the fourth quarter of 2010.

For Hanmi's investors, quite a bit is riding on the company's deferred tax assets, or DTA, which can only be recaptured in the event of sustained, and significant, profitability. During the company's fourth-quarter conference call on Jan. 19, CFO Lonny Robinson said that "as we see profitability continuing, we believe that we may be able to recover some although not all of the approximately $80 million deferred tax asset valuation allowance,: but that "DTA recoveries are typically not a one-time event but rather a series of credits over several quarters."

The shares trade for eight times the consensus 2012 EPS estimate of $1.14.

KBW analyst Julianna Balicka has a "Market Perform" rating on Hanmi Financial, with an $8.50 price target, saying on Jan. 26 that "things are aligning well for Hanmi," as the company's tangible common equity ratio HAD "improved to 10.4%," the DTA recapture was "anticipated in 2012," and because of "lending momentum, especially in SBA."

Balicka increased her 2012 EPS estimate for Hanmi to $1.50 from 53 cents, and her 2013 estimate to $1.30 from 76 cents, "modeling $30mm of the DTA valuation allowance reversal in our 2012 numbers, followed by $20mm in 2013," improving tangible book value per share by an estimated $1.59.

Interested in more on Hanmi Financial? See TheStreet Ratings' report card for this stock.
3 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.56 0.00%
C $46.28 0.00%
BPOP $29.72 0.00%
JPM $63.20 0.00%
WFC $49.98 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs