Earnings of Hanmi Financial Corporation (HAFC) declined by 23% sequentially in the first quarter to $0.08 per share. Earnings will likely improve in the remainder of the year but remain below the earnings for 2019. HAFC has high exposure to the hard-hit hospitality industry, which will likely keep credit costs high and earnings low in the year ahead. Further, a slight decline in the net interest margin following the monetary easing in March will pressurize earnings in the remainder of 2020. On the other hand, the Paycheck Protection Program will support the bottom