Hanmi Financial Corporation's (HAFC) provisions charge for loan losses is expected to return to normal in 2020, which will increase earnings next year compared to 2019. Other earnings components are expected to see flat growth year over year.
Provisions To Continue To Remain Low
HAFC's earnings received a hit in the second quarter from a $15.7 million allowance relating to a troubled $40 million loan relationship. The provisions charge returned to normal in the third quarter, showing that the spike in the second quarter was in fact non-recurring. Going forward, provisions charge for