Hanmi stock rise brings cheer, caution as bank gets new CEO.

HANMI Financial Corp. has had a banner few weeks, but some analysts are beginning to urge caution.

The Los Angeles-based holding company for Hanmi Bank, the largest Korean-American bank in the United States, saw its stock rise by more than $5 a share between Oct. 29 and Nov. 5. As of Nov. 11, the stock was trading at $35.90, a 52-week high reflecting an 81.6 percent rise since January.

Last month, Hanmi reported third-quarter net income of $11.1 million, compared with $5 million for the like period a year earlier.

To top it off, the company tapped a prominent industry figure, Wells Fargo Bank Chief Economist Dr. Sung Won Sohn, to replace the outgoing President and Chief Executive Jan Whan Yoo. Sohn starts in January.

Analysts see Sohn as a largely positive step for Hanmi, but they're mixed on the outlook for the stock.

Piper Jaffray Cos.' Kathy Steinbrecher, who had raised her recommendation to "outperform" on Oct. 22 on the strength of third quarter numbers, boosted her price target to $38 from $36 Nov. 8, largely due to Sohn's arrival.

"We believe he'll attract new business relationships, given his local and national recognition, which will lead to growth in business loans and deposits," she said.

On the same day, Cohen Bros. analyst Joe Gladue downgraded his recommendation to "market perform," citing valuation considerations. Gladue had raised his rating to "outperform" only six days before Sohn's hiring, on the strength of the third-quarter release.

One potential concern is that Sohn, in his capacity as an economist, hasn't had the day-to-day responsibility of setting the strategy for a bank as president and chief executive. "It's a question of, 'Will the senior economist be a great CEO?'" said Gladue. "And we don't know what different direction he'll take the bank in."

Several analysts suggested that Hanmi's board could look to hire a chief operating officer to help with Sohn's transition.

Hanmi spokeswoman Stephanie Yoon said that was a possibility, but nothing had been decided. "We don't expect any immediate changes at this point," she said.

Regardless, many see Sohn's more than 30 years in banking, plus a stint on the Council of Economic Advisors in the Nixon administration, as experience enough.

"Banking is a fairly straightforward business," said Brett Rabatin of FTN Midwest Research. "He'll hit the ground running and will surround himself with talented people."