10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From To

Commission File Number: 000-30421

HANMI FINANCIAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware	95-4788120
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

900 Wilshire Boulevard, Suite 1250
Los Angeles, California	90017
(Address of Principal Executive Offices)	(Zip Code)

(213) 382-2200

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	HAFC	Nasdaq Global Select Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of November 2, 2022, there were 30,486,115 outstanding shares of the Registrant’s Common Stock.

Hanmi Financial Corporation and Subsidiaries Quarterly Report on Form 10-Q

Three Months Ended September 30, 2022

Table of Contents

	Part I – Financial Information
Item 1.	Financial Statements	3
	Consolidated Balance Sheets at September 30, 2022 (unaudited) and December 31, 2021	3
	Consolidated Statements of Income for the three and nine months ended September 30, 2022 and 2021 (unaudited)	4
	Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2022 and 2021 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2022 and 2021 (unaudited)	6
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (unaudited)	8
	Notes to Consolidated Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	59
	Part II – Other Information
Item 1.	Legal Proceedings	60
Item 1A.	Risk Factors	60
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 3.	Defaults Upon Senior Securities	60
Item 4.	Mine Safety Disclosures	60
Item 5.	Other Information	60
Item 6.	Exhibits	61
Signatures		62

2

Part I — Financial Information

Item 1. Financial Statements

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)

	September 30,			December 31,
	2022			2021
	(Unaudited)
Assets
Cash and due from banks	$	275,159		$	608,965
Securities available for sale, at fair value (amortized cost of $967,383 and $922,654 as of September 30, 2022 and December 31, 2021, respectively)		830,151			910,790
Loans held for sale, at the lower of cost or fair value		10,044			13,342
Loans receivable, net of allowance for credit losses of $71,584 and $72,557 as of September 30, 2022 and December 31, 2021, respectively		5,729,407			5,078,984
Accrued interest receivable		15,356			11,976
Premises and equipment, net		23,591			24,788
Customers' liability on acceptances		200			—
Servicing assets		7,424			7,080
Goodwill and other intangible assets, net		11,267			11,395
Federal Home Loan Bank ("FHLB") stock, at cost		16,385			16,385
Income tax assets		66,217			44,060
Bank-owned life insurance		55,641			54,905
Prepaid expenses and other assets		87,669			75,917
Total assets	$	7,128,511		$	6,858,587
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,771,498		$	2,574,517
Interest-bearing		3,429,878			3,211,752
Total deposits		6,201,376			5,786,269
Accrued interest payable		2,180			1,161
Bank's liability on acceptances		200			—
Borrowings		100,000			137,500
Subordinated debentures ($136,800 and $224,100 face amount less unamortized discount and debt issuance costs of $7,539 and $9,094 as of September 30, 2022 and December 31, 2021, respectively)		129,261			215,006
Accrued expenses and other liabilities		86,601			75,234
Total liabilities		6,519,618			6,215,170
Stockholders’ equity:
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of September 30, 2022 and December 31, 2021		—			—
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 33,705,973 shares (30,484,004 shares outstanding) and 33,603,839 shares (30,407,261 shares outstanding) as of September 30, 2022 and December 31, 2021, respectively		33			33
Additional paid-in capital		582,695			580,796
Accumulated other comprehensive income (loss), net of tax benefit of $41,170 and $3,421 as of September 30, 2022 and December 31, 2021, respectively		(96,062	)		(8,443	)
Retained earnings		248,684			196,784
Less treasury stock; 3,221,969 shares and 3,196,578 shares as of September 30, 2022 and December 31, 2021, respectively		(126,457	)		(125,753	)
Total stockholders’ equity		608,893			643,417
Total liabilities and stockholders’ equity	$	7,128,511		$	6,858,587

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

3

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(in thousands, except share and per share data)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2022		2021			2022		2021
Interest and dividend income:
Interest and fees on loans receivable	$	66,976	$	52,961		$	180,755	$	156,361
Interest on securities		3,271		1,865			8,718		4,409
Dividends on FHLB stock		245		245			735		693
Interest on deposits in other banks		958		329			1,366		601
Total interest and dividend income		71,450		55,400			191,574		162,064
Interest expense:
Interest on deposits		6,567		2,466			11,038		9,419
Interest on borrowings		349		409			1,056		1,332
Interest on subordinated debentures		1,448		2,545			6,394		5,759
Total interest expense		8,364		5,420			18,488		16,510
Net interest income before credit loss expense		63,086		49,980			173,086		145,554
Credit loss expense (recovery)		563		(7,234	)		783		(8,452	)
Net interest income after credit loss expense (recovery)		62,523		57,214			172,303		154,006
Noninterest income:
Service charges on deposit accounts		2,996		3,437			8,745		8,036
Trade finance and other service charges and fees		1,132		1,188			3,690		3,468
Gain on sale of Small Business Administration ("SBA") loans		2,250		5,842			7,545		13,475
Net gain on sales of securities		—		—			—		99
Other operating income		2,536		2,042			6,763		6,123
Total noninterest income		8,914		12,509			26,743		31,201
Noninterest expense:
Salaries and employee benefits		19,365		18,795			55,861		53,917
Occupancy and equipment		4,736		5,037			13,979		14,235
Data processing		3,352		2,934			9,702		8,775
Professional fees		1,249		1,263			3,909		4,123
Supplies and communications		710		741			1,956		2,231
Advertising and promotion		1,186		953			2,664		1,685
Other operating expenses		2,677		2,779			8,370		7,852
Total noninterest expense		33,275		32,502			96,441		92,818
Income before tax		38,162		37,221			102,605		92,389
Income tax expense		10,993		10,656			29,690		27,042
Net income	$	27,169	$	26,565		$	72,915	$	65,346
Basic earnings per share	$	0.89	$	0.87		$	2.39	$	2.13
Diluted earnings per share	$	0.89	$	0.86		$	2.39	$	2.13
Weighted-average shares outstanding:
Basic		30,314,439		30,474,391			30,289,068		30,222,978
Diluted		30,396,762		30,552,196			30,369,538		30,298,553

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

4

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

(in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
Net income	$	27,169		$	26,565		$	72,915		$	65,346
Other comprehensive income (loss), net of tax:
Unrealized gain on securities:
Unrealized holding (loss) gain arising during period		(42,135	)		(3,568	)		(125,368	)		(11,877	)
Less: reclassification adjustment for net gain included in net income		—			—			—			(99	)
Income tax benefit (expense) related to items of other comprehensive income		12,641			1,070			37,749			3,543
Other comprehensive income (loss), net of tax		(29,494	)		(2,498	)		(87,619	)		(8,433	)
Comprehensive income (loss)	$	(2,325	)	$	24,067		$	(14,704	)	$	56,913

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

5

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three Months Ended September 30, 2022 and 2021

(in thousands, except share data)

	Common Stock - Number of Shares									Stockholders' Equity
														Accumulated
												Additional		Other						Treasury			Total
	Shares			Treasury			Shares			Common		Paid-in		Comprehensive			Retained			Stock,			Stockholders'
	Issued			Shares			Outstanding			Stock		Capital		Income (Loss)			Earnings			at Cost			Equity
Balance at July 1, 2021		33,617,311			(2,919,659	)		30,697,652		$	33	$	579,595	$	(2,859	)	$	146,651		$	(120,443	)	$	602,977
Restricted stock awards, net of forfeitures		(185	)		—			(185	)		—		—		—			—			—			—
Share-based compensation expense		—			—			—			—		664		—			—			—			664
Restricted stock surrendered due to employee tax liability		—			(5,946	)		(5,946	)		—		—		—			—			(80	)		(80	)
Repurchase of common stock		—			(249,920	)		(249,920	)		—		—		—			—			(4,891	)		(4,891	)
Cash dividends paid (common stock, $0.12/share)		—			—			—			—		—		—			(3,682	)		—			(3,682	)
Net income		—			—			—			—		—		—			26,565			—			26,565
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—			—			—			—		—		(2,498	)		—			—			(2,498	)
Balance at September 30, 2021		33,617,126			(3,175,525	)		30,441,601		$	33	$	580,259	$	(5,357	)	$	169,534		$	(125,414	)	$	619,055
Balance at July 1, 2022		33,701,784			(3,218,794	)		30,482,990		$	33	$	582,018	$	(66,568	)	$	229,135		$	(126,322	)	$	618,296
Stock options exercised		—			1,050			1,050			—		13		—			—			—			13
Restricted stock awards, net of forfeitures		4,189			—			4,189			—		—		—			—			—			—
Share-based compensation expense		—			—			—			—		664		—			—			—			664
Restricted stock surrendered due to employee tax liability		—			(4,225	)		(4,225	)		—		—		—			—			(135	)		(135	)
Cash dividends paid (common stock, $0.25/share)		—			—			—			—		—		—			(7,620	)		—			(7,620	)
Net income		—			—			—			—		—		—			27,169			—			27,169
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—			—			—			—		—		(29,494	)		—			—			(29,494	)
Balance at September 30, 2022		33,705,973			(3,221,969	)		30,484,004		$	33	$	582,695	$	(96,062	)	$	248,684		$	(126,457	)	$	608,893

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

6

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Nine Months Ended September 30, 2022 and 2021

(in thousands, except share data)

	Common Stock - Number of Shares								Stockholders' Equity
													Accumulated
											Additional		Other						Treasury			Total
	Shares		Treasury			Shares			Common		Paid-in		Comprehensive			Retained			Stock,			Stockholders'
	Issued		Shares			Outstanding			Stock		Capital		Income (Loss)			Earnings			at Cost			Equity
Balance at January 1, 2021		33,560,801		(2,842,966	)		30,717,835		$	33	$	578,360	$	3,076		$	114,621		$	(119,046	)	$	577,044
Restricted stock awards, net of forfeitures		56,325		—			56,325			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		1,899		—			—			—			1,899
Restricted stock surrendered due to employee tax liability		—		(27,639	)		(27,639	)		—		—		—			—			(531	)		(531	)
Repurchase of common stock		—		(304,920	)		(304,920	)		—		—		—			—			(5,837	)		(5,837	)
Cash dividends paid (common stock, $0.34/share)		—		—			—			—		—		—			(10,433	)		—			(10,433	)
Net income		—		—			—			—		—		—			65,346			—			65,346
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		(8,433	)		—			—			(8,433	)
Balance at September 30, 2021		33,617,126		(3,175,525	)		30,441,601		$	33	$	580,259	$	(5,357	)	$	169,534		$	(125,414	)	$	619,055
Balance at January 1, 2022		33,603,839		(3,196,578	)		30,407,261		$	33	$	580,796	$	(8,443	)	$	196,784		$	(125,753	)	$	643,417
Stock options exercised		—		1,050			1,050			—		13		—			—			—			13
Restricted stock awards, net of forfeitures		102,134		—			102,134			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		1,886		—			—			—			1,886
Restricted stock surrendered due to employee tax liability		—		(26,441	)		(26,441	)		—		—		—			—			(704	)		(704	)
Cash dividends paid (common stock, $0.69/share)		—		—			—			—		—		—			(21,015	)		—			(21,015	)
Net income		—		—			—			—		—		—			72,915			—			72,915
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		(87,619	)		—			—			(87,619	)
Balance at September 30, 2022		33,705,973		(3,221,969	)		30,484,004		$	33	$	582,695	$	(96,062	)	$	248,684		$	(126,457	)	$	608,893

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

7

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

	Nine Months Ended September 30,
	2022			2021
Cash flows from operating activities:
Net income	$	72,915		$	65,346
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		12,463			12,186
Share-based compensation expense		1,886			1,899
Credit loss expense (recovery)		783			(8,452	)
Gain on sales of securities		—			(99	)
Gain on sales of SBA loans		(7,545	)		(13,475	)
Origination of SBA loans held for sale		(111,915	)		(233,642	)
Proceeds from sales of SBA loans		122,744			233,711
Change in bank-owned life insurance		(736	)		(759	)
Change in prepaid expenses and other assets		(21,443	)		5,531
Change in income tax assets		15,592			3,407
Change in accrued expenses and other liabilities		15,646			(188	)
Net cash provided by (used in) operating activities		100,390			65,465
Cash flows from investing activities:
Purchases of securities available for sale		(132,966	)		(402,259	)
Proceeds from matured, called and repayment of securities		84,669			223,129
Proceeds from sales of securities available for sale		—			8,035
Purchases of loans receivable		(11,130	)		(1,500	)
Purchases of premises and equipment		(1,750	)		(2,450	)
Proceeds from disposition of premises and equipment		—			45
Proceeds from sales of other real estate owned ("OREO")		—			1,479
Change in loans receivable, excluding purchases		(641,619	)		20,415
Net cash provided by (used in) investing activities		(702,796	)		(153,106	)
Cash flows from financing activities:
Change in deposits		415,107			454,528
Proceeds from borrowings		399,819			45,750
Repayment of borrowings		(437,320	)		(58,250	)
Proceeds from redeemed subordinated debentures		12,700			—
Issuance of subordinated debentures		—			107,956
Redemption of subordinated debentures		(100,000	)		(13,043	)
Proceeds from exercise of stock options		13			—
Cash paid for surrender of vested shares due to employee tax liability		(704	)		(531	)
Repurchase of common stock		—			(5,837	)
Cash dividends paid		(21,015	)		(10,433	)
Net cash provided by (used in) financing activities		268,600			520,140
Net increase (decrease) in cash and due from banks		(333,806	)		432,498
Cash and due from banks at beginning of year		608,965			391,849
Cash and due from banks at end of period	$	275,159		$	824,347
Supplemental disclosures of cash flow information:
Interest paid	$	17,469		$	19,839
Income taxes paid	$	12,725		$	22,265
Non-cash activities:
Transfer of loans receivable to other real estate owned	$	117		$	—
Income tax benefit related to items of other comprehensive income	$	37,749		$	3,543
Change in right-of-use asset obtained in exchange for lease liability	$	108		$	2,905

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

8

Hanmi Financial Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1 — Organization and Basis of Presentation

Hanmi Financial Corporation (“Hanmi Financial,” the “Company,” “we,” “us” or “our”) is a bank holding company whose primary subsidiary is Hanmi Bank (the “Bank”). Our primary operations are related to traditional banking activities, including the acceptance of deposits and the lending and investing of money by the Bank.

In management’s opinion, the accompanying unaudited consolidated financial statements of Hanmi Financial and its subsidiaries reflect all adjustments of a normal and recurring nature that are necessary for a fair presentation of the results for the interim periods ended September 30, 2022, but are not necessarily indicative of the results that will be reported for the entire year or any other interim period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. The unaudited consolidated financial statements are prepared in conformity with GAAP and in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. The interim information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report on Form 10-K”).

The preparation of interim unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited financial statements and disclosures provided, and actual results could differ.

The extent to which the COVID-19 pandemic may impact business activity or financial results will depend on future developments, including new variants that may emerge and the actions required to contain the coronavirus or treat its impact, among others, which are highly uncertain and cannot be predicted. This uncertainty may impact the accuracy of our significant estimates, which includes the allowance for credit losses, the allowance for credit losses related to off-balance sheet items, and the valuation of intangible assets, including deferred tax assets, goodwill, and servicing assets.

Descriptions of our significant accounting policies are included in Note 1 - Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in the 2021 Annual Report on Form 10-K.

9

Note 2 — Securities

The following is a summary of securities available for sale as of the dates indicated:

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
	(in thousands)
September 30, 2022
U.S. Treasury securities	$	34,876	$	—	$	(1,716	)	$	33,160
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		615,335		—		(92,965	)		522,370
Collateralized mortgage obligations		98,872		—		(12,466	)		86,406
Debt securities		139,904		—		(12,270	)		127,634
Total U.S. government agency and sponsored agency obligations		854,111		—		(117,701	)		736,410
Municipal bonds-tax exempt		78,396		—		(17,815	)		60,581
Total securities available for sale	$	967,383	$	—	$	(137,232	)	$	830,151
December 31, 2021
U.S. Treasury securities	$	15,457	$	1	$	(61	)	$	15,397
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		615,393		18		(7,906	)		607,505
Collateralized mortgage obligations		95,153		41		(1,590	)		93,604
Debt securities		117,499		—		(1,603	)		115,896
Total U.S. government agency and sponsored agency obligations		828,045		59		(11,099	)		817,005
Municipal bonds-tax exempt		79,152		117		(881	)		78,388
Total securities available for sale	$	922,654	$	177	$	(12,041	)	$	910,790

The amortized cost and estimated fair value of securities as of September 30, 2022 and December 31, 2021, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities.

	September 30, 2022				December 31, 2021
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	14,984	$	14,649	$	1,103	$	1,108
Over one year through five years		169,164		155,085		126,483		125,069
Over five years through ten years		36,905		32,703		51,338		50,770
Over ten years		746,330		627,714		743,730		733,843
Total	$	967,383	$	830,151	$	922,654	$	910,790

10

The following table summarizes debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded at September 30, 2022 and December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position:

	Holding Period
	Less than 12 Months							12 Months or More							Total
	Gross			Estimated		Number		Gross			Estimated		Number		Gross			Estimated		Number
	Unrealized			Fair		of		Unrealized			Fair		of		Unrealized			Fair		of
	Loss			Value		Securities		Loss			Value		Securities		Loss			Value		Securities
	(in thousands, except number of securities)
September 30, 2022
U.S. Treasury securities	$	(1,145	)	$	28,773		12	$	(571	)	$	4,387		1	$	(1,716	)	$	33,160		13
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		(14,222	)		104,500		33		(78,743	)		417,870		105		(92,965	)		522,370		138
Collateralized mortgage obligations		(1,526	)		25,479		10		(10,940	)		60,927		18		(12,466	)		86,406		28
Debt securities		(2,390	)		38,488		9		(9,880	)		89,146		18		(12,270	)		127,634		27
Total U.S. government agency and sponsored agency obligations		(18,138	)		168,467		52		(99,563	)		567,943		141		(117,701	)		736,410		193
Municipal bonds-tax exempt		(2,735	)		10,906		3		(15,080	)		49,675		16		(17,815	)		60,581		19
Total	$	(22,018	)	$	208,146		67	$	(115,214	)	$	622,005		158	$	(137,232	)	$	830,151		225
December 31, 2021
U.S. Treasury securities	$	(61	)	$	8,391		2	$	—		$	—		—	$	(61	)	$	8,391		2
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		(6,252	)		535,610		102		(1,654	)		59,457		11		(7,906	)		595,067		113
Collateralized mortgage obligations		(1,256	)		76,894		16		(334	)		12,548		3		(1,590	)		89,442		19
Debt securities		(1,503	)		110,996		21		(100	)		4,900		1		(1,603	)		115,896		22
Total U.S. government agency and sponsored agency obligations		(9,011	)		723,500		139		(2,088	)		76,905		15		(11,099	)		800,405		154
Municipal bonds-tax exempt		(881	)		68,548		17		—			—		—		(881	)		68,548		17
Total	$	(9,953	)	$	800,439		158	$	(2,088	)	$	76,905		15	$	(12,041	)	$	877,344		173

The Company evaluates its available-for-sale securities portfolio for impairment on a quarterly basis. This assessment takes into account the changes in the credit quality of these debt securities since acquisition and the likelihood of a credit loss occurring over the life of the securities. In the event that a credit loss is expected to occur in the future, an allowance is established and a corresponding credit loss is recognized. Based on this analysis, as of September 30, 2022, the Company determined that no credit losses are expected to be realized on the tax-exempt municipal bond portfolio. The remainder of the portfolio consists of U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government, and are therefore not expected to incur credit losses.

Realized gains and losses on sales of securities and proceeds from sales of securities were as follows for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Gross realized gains on sales of securities	$	—	$	—	$	—	$	99
Gross realized losses on sales of securities		—		—		—		—
Net realized gains on sales of securities	$	—	$	—	$	—	$	99
Proceeds from sales of securities	$	—	$	—	$	—	$	8,035

There were no sales of securities during the three months ended September 30, 2022 or 2021.

During the nine months ended September 30, 2022, there were no sale of securities. During the nine months ended September 30, 2021, there were $0.1 million in net gains in earnings resulting from the sale of $8.0 million of securities previously recorded with $0.1 million unrealized gains in accumulated other comprehensive income.

Securities available for sale with market values of $24.5 million and $34.7 million as of September 30, 2022 and December 31, 2021, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.

11

At September 30, 2022, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies in an amount greater than 10 percent of shareholders’ equity.

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:

	September 30, 2022			December 31, 2021
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,044,287		$	970,134
Hospitality		662,438			717,692
Other (1)		2,044,878			1,919,033
Total commercial property loans		3,751,603			3,606,859
Construction		102,342			95,006
Residential (2)		649,589			400,546
Total real estate loans		4,503,534			4,102,411
Commercial and industrial loans (3)		732,033			561,831
Equipment financing agreements		565,424			487,299
Loans receivable		5,800,991			5,151,541
Allowance for credit losses		(71,584	)		(72,557	)
Loans receivable, net	$	5,729,407		$	5,078,984

(1)Includes mixed-use, multifamily, office, industrial, gas stations, faith-based facilities, medical and warehouse; all other property types represent less than one percent of total loans receivable.

(2)Includes $2.4 million and $3.9 million of home equity loans and lines, and $5.6 million and $6.0 of personal loans at September 30, 2022 and December 31, 2021, respectively.

(3)At September 30, 2022 and December 31, 2021, Paycheck Protection Program ("PPP") loans were $1.0 million and $3.0 million, respectively.

Accrued interest on loans was $13.2 million and $10.1 million at September 30, 2022 and December 31, 2021, respectively.

At September 30, 2022 and December 31, 2021, loans of $2.36 billion and $2.30 billion, respectively, were pledged to secure advances from the FHLB.

12

Loans Held for Sale

The following is the activity for loans held for sale for the three months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	10,976		$	7,552		$	18,528
Originations and transfers		23,013			12,198			35,211
Sales		(27,493	)		(16,192	)		(43,685	)
Principal paydowns and amortization		(6	)		(4	)		(10	)
Balance at end of period	$	6,490		$	3,554		$	10,044
September 30, 2021
Balance at beginning of period	$	13,092		$	22,938		$	36,030
Originations and transfers		28,537			15,228			43,765
Sales		(27,513	)		(34,956	)		(62,469	)
Principal paydowns and amortization		(4	)		559			555
Balance at end of period	$	14,112		$	3,769		$	17,881

Loans held for sale was comprised of $10.0 million and $13.3 million of the guaranteed portion of SBA 7(a) loans at September 30, 2022 and December 31, 2021, respectively. All second draw PPP loans were sold by the third quarter of 2021. For the three and nine months ended September 30, 2021, the Company recognized $0.3 million and $3.0 million, respectively, of gains on the sale of $14.6 million and $132.7 million, respectively, of second draw PPP loans.

The following is the activity for loans held for sale for the nine months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	6,954		$	6,388		$	13,342
Originations and transfers		72,708			39,207			111,915
Sales		(73,166	)		(42,033	)		(115,199	)
Principal payoffs and amortization		(6	)		(8	)		(14	)
Balance at end of period	$	6,490		$	3,554		$	10,044
September 30, 2021
Balance at beginning of period	$	8,042		$	526		$	8,568
Originations and transfers		71,005			162,637			233,642
Sales		(64,930	)		(160,293	)		(225,223	)
Principal payoffs and amortization		(5	)		899			894
Balance at end of period	$	14,112		$	3,769		$	17,881

13

Allowance for Credit Losses

The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	46,112		$	14,275		$	12,680		$	73,067
Less loans charged off		1,356			8			716			2,080
Recoveries on loans receivable previously charged off		(373	)		(228	)		(369	)		(970	)
Provision (recovery) for credit losses		395			381			(1,149	)		(373	)
Ending balance	$	45,524		$	14,876		$	11,184		$	71,584
September 30, 2021
Balance at beginning of period	$	63,029		$	8,059		$	12,284		$	83,372
Less loans charged off		—			186			791			977
Recoveries on loans receivable previously charged off		(1,162	)		(330	)		(350	)		(1,842	)
Provision (recovery) for credit losses		(8,128	)		507			(3	)		(7,624	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613

The following table details the information on the allowance for credit losses by portfolio segment as of and for the nine months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	48,890		$	12,418		$	11,249			72,557
Less loans charged off		1,886			87			1,548			3,521
Recoveries on loans receivable previously charged off		(632	)		(679	)		(1,117	)		(2,428	)
Provision (recovery) for credit losses		(2,112	)		1,866			366			120
Ending balance	$	45,524		$	14,876		$	11,184		$	71,584
September 30, 2021
Balance at beginning of period	$	51,876		$	21,410		$	17,140		$	90,426
Less loans charged off		1,491			550			3,893			5,934
Recoveries on loans receivable previously charged off		(1,597	)		(602	)		(694	)		(2,893	)
Provision (recovery) for credit losses		4,081			(12,752	)		(2,101	)		(10,772	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613

14

The table below illustrates the allowance for credit losses by loan portfolio segment and each loan portfolio segment as a percentage of total loans.

	September 30, 2022										December 31, 2021
	Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans			Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans
	(dollars in thousands)
Real estate loans:
Commercial property
Retail	$	7,758		10.8	%	$	1,044,287		18.0	%	$	6,579		9.1	%	$	970,134		18.8	%
Hospitality		15,417		21.5	%		662,438		11.4	%		22,670		31.2	%		717,692		13.9	%
Other		15,450		21.7	%		2,044,878		35.3	%		15,065		20.8	%		1,919,033		37.3	%
Total commercial property loans		38,625		54.0	%		3,751,603		64.7	%		44,314		61.1	%		3,606,859		70.0	%
Construction		4,034		5.6	%		102,342		1.8	%		4,078		5.6	%		95,006		1.8	%
Residential		2,865		4.0	%		649,589		11.2	%		498		0.7	%		400,546		7.8	%
Total real estate loans		45,524		63.6	%		4,503,534		77.7	%		48,890		67.4	%		4,102,411		79.6	%
Commercial and industrial loans		14,876		20.8	%		732,033		12.6	%		12,418		17.1	%		561,831		10.9	%
Equipment financing agreements		11,184		15.6	%		565,424		9.7	%		11,249		15.5	%		487,299		9.5	%
Total	$	71,584		100.0	%	$	5,800,991		100.0	%	$	72,557		100.0	%	$	5,151,541		100.0	%

The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2022 and December 31, 2021, for which repayment is expected to be obtained through the sale of the underlying collateral.

	September 30, 2022		December 31, 2021
	Amortized Cost		Amortized Cost
	(in thousands)
Real estate loans:
Commercial property
Retail	$	3,531	$	1,917
Hospitality		—		—
Other (1)		608		499
Total commercial property loans		4,139		2,416
Residential		912		982
Total real estate loans		5,051		3,398
Total	$	5,051	$	3,398

(1)Includes mixed-use, multifamily, office, industrial, gas stations, faith-based facilities, medical and warehouse; all other property types represent less than one percent of total loans receivable.

Loan Quality Indicators

As part of the on-going monitoring of the quality of our loans portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 0 to 8) for each loan in our portfolio. A third-party loan review is performed at least on an annual basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows:

Pass and Pass-Watch: Pass and Pass-Watch loans, grades (0-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention,” “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.

Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified.

15

Substandard: A Substandard loan, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected.

Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time.

Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner.

Under regulatory guidance, loans graded special mention or worse are considered criticized loans, and loans graded substandard or worse are considered classified loans.

16

Loans by Vintage Year and Risk Rating

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
September 30, 2022
Real estate loans:
Commercial property
Risk Rating							`
Pass / Pass-Watch	$	1,035,752	$	924,041	$	629,274	$	422,378	$	320,721	$	252,048	$	57,112	$	3,641,326
Special Mention		—		13,504		18,154		7,159		21,469		9,570		1,701		71,557
Classified		851		—		—		5,816		13,983		18,070		—		38,720
Total commercial property		1,036,603		937,545		647,428		435,353		356,173		279,688		58,813		3,751,603
Construction
Risk Rating
Pass / Pass-Watch		39,090		63,252		—		—		—		—		—		102,342
Special Mention		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—
Total construction		39,090		63,252		—		—		—		—		—		102,342
Residential
Risk Rating
Pass / Pass-Watch		310,794		176,295		13,146		236		737		140,285		6,476		647,969
Special Mention		—		—		343		—		—		—		350		693
Classified		15		—		—		—		—		912		—		927
Total residential		310,809		176,295		13,489		236		737		141,197		6,826		649,589
Total real estate loans
Risk Rating
Pass / Pass-Watch		1,385,636		1,163,588		642,420		422,614		321,458		392,333		63,588		4,391,637
Special Mention		—		13,504		18,497		7,159		21,469		9,570		2,051		72,250
Classified		866		—		—		5,816		13,983		18,982		—		39,647
Total real estate loans		1,386,502		1,177,092		660,917		435,589		356,910		420,885		65,639		4,503,534
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		283,314		110,850		45,219		29,583		11,656		13,864		184,223		678,709
Special Mention		—		9,609		—		13,514		—		107		27,472		50,702
Classified		—		35		171		1,183		97		495		641		2,622
Total commercial and industrial loans		283,314		120,494		45,390		44,280		11,753		14,466		212,336		732,033
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		233,883		183,731		53,553		62,107		23,802		2,878		—		559,954
Special Mention		—		—		—		—		—		—		—		—
Classified		108		1,568		265		2,582		814		133		—		5,470
Total equipment financing agreements		233,991		185,299		53,818		64,689		24,616		3,011		—		565,424
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,902,833		1,458,169		741,192		514,304		356,916		409,075		247,811		5,630,300
Special Mention		—		23,113		18,497		20,673		21,469		9,677		29,523		122,952
Classified		974		1,603		436		9,581		14,894		19,610		641		47,739
Total loans receivable	$	1,903,807	$	1,482,885	$	760,125	$	544,558	$	393,279	$	438,362	$	277,975	$	5,800,991

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

17

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis			Total
December 31, 2021
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	1,203,197	$	706,470	$	488,250	$	406,288	$	277,680	$	384,064	$	41,413		$	3,507,362
Special Mention		—		18,869		7,593		—		6,999		16,879		1,703			52,043
Classified		—		—		5,450		17,247		2,965		21,792		—			47,454
Total commercial property		1,203,197		725,339		501,293		423,535		287,644		422,735		43,116			3,606,859
Construction
Risk Rating
Pass / Pass-Watch		73,808		631		—		—		—		—		—			74,439
Special Mention		—		—		—		—		—		20,567		—			20,567
Classified		—		—		—		—		—		—		—			—
Total construction		73,808		631		—		—		—		20,567		—			95,006
Residential
Risk Rating
Pass / Pass-Watch		194,948		16,975		247		19,813		73,567		82,076		8,381			396,007
Special Mention		—		—		—		930		406		2,221		—			3,557
Classified		—		—		—		—		965		17		—			982
Total residential		194,948		16,975		247		20,743		74,938		84,314		8,381			400,546
Total real estate loans
Risk Rating
Pass / Pass-Watch		1,471,953		724,076		488,497		426,101		351,247		466,140		49,794			3,977,808
Special Mention		—		18,869		7,593		930		7,405		39,667		1,703			76,167
Classified		—		—		5,450		17,247		3,930		21,809		—			48,436
Total real estate loans		1,471,953		742,945		501,540		444,278		362,582		527,616		51,497			4,102,411
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		264,762		55,135		36,937		15,780		10,874		6,016		148,148			537,652
Special Mention		—		274		13,989		—		67		4,802		(5	)		19,127
Classified		—		3		708		145		19		886		3,291			5,052
Total commercial and industrial loans		264,762		55,412		51,634		15,925		10,960		11,704		151,434			561,831
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		239,738		79,400		101,460		47,485		10,683		1,388		—			480,154
Special Mention		—		—		—		—		—		—		—			—
Classified		716		981		3,575		1,328		347		198		—			7,145
Total equipment financing agreements		240,454		80,381		105,035		48,813		11,030		1,586		—			487,299
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,976,453		858,611		626,894		489,366		372,804		473,544		197,942			4,995,614
Special Mention		—		19,143		21,582		930		7,472		44,469		1,698			95,294
Classified		716		984		9,733		18,720		4,296		22,893		3,291			60,633
Total loans receivable	$	1,977,169	$	878,738	$	658,209	$	509,016	$	384,572	$	540,906	$	202,931		$	5,151,541

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

18

Loans by Vintage Year and Payment Performance

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
September 30, 2022
Real estate loans:
Commercial property
Payment performance
Performing	$	1,036,603	$	937,545	$	647,428	$	435,353	$	352,642	$	278,434	$	58,813	$	3,746,818
Nonperforming		—		—		—		—		3,531		1,254		—		4,785
Total commercial property		1,036,603		937,545		647,428		435,353		356,173		279,688		58,813		3,751,603
Construction
Payment performance
Performing		39,090		63,252		—		—		—		—		—		102,342
Nonperforming		—		—		—		—		—		—		—		—
Total construction		39,090		63,252		—		—		—		—		—		102,342
Residential
Payment performance
Performing		310,794		176,295		13,489		236		737		140,285		6,826		648,662
Nonperforming		15		—		—		—		—		912		—		927
Total residential		310,809		176,295		13,489		236		737		141,197		6,826		649,589
Total real estate loans
Payment performance
Performing		1,386,487		1,177,092		660,917		435,589		353,379		418,719		65,639		4,497,822
Nonperforming		15		—		—		—		3,531		2,166		—		5,712
Total real estate loans		1,386,502		1,177,092		660,917		435,589		356,910		420,885		65,639		4,503,534
Commercial and industrial loans:
Payment performance
Performing		283,314		120,459		45,219		44,280		11,753		14,263		212,336		731,624
Nonperforming		—		35		171		—		—		203		—		409
Total commercial and industrial loans		283,314		120,494		45,390		44,280		11,753		14,466		212,336		732,033
Equipment financing agreements:
Payment performance
Performing		233,883		183,731		53,553		62,107		23,802		2,878		—		559,954
Nonperforming		108		1,568		265		2,582		814		133		—		5,470
Total equipment financing agreements		233,991		185,299		53,818		64,689		24,616		3,011		—		565,424
Total loans receivable:
Payment performance
Performing		1,903,684		1,481,282		759,689		541,976		388,934		435,860		277,975		5,789,400
Nonperforming		123		1,603		436		2,582		4,345		2,502		—		11,591
Total loans receivable	$	1,903,807	$	1,482,885	$	760,125	$	544,558	$	393,279	$	438,362	$	277,975	$	5,800,991

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

19

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2021
Real estate loans:
Commercial property
Payment performance
Performing	$	1,203,197	$	725,339	$	501,293	$	423,515	$	286,935	$	419,464	$	43,116	$	3,602,859
Nonperforming		—		—		—		20		709		3,271		—		4,000
Total commercial property		1,203,197		725,339		501,293		423,535		287,644		422,735		43,116		3,606,859
Construction
Payment performance
Performing		73,808		631		—		—		—		20,567		—		95,006
Nonperforming		—		—		—		—		—		—		—		—
Total construction		73,808		631		—		—		—		20,567		—		95,006
Residential
Payment performance
Performing		194,948		16,975		247		20,743		73,973		84,052		8,381		399,319
Nonperforming		—		—		—		—		965		262		—		1,227
Total residential		194,948		16,975		247		20,743		74,938		84,314		8,381		400,546
Total real estate loans
Payment performance
Performing		1,471,953		742,945		501,540		444,258		360,908		524,083		51,497		4,097,184
Nonperforming		—		—		—		20		1,674		3,533		—		5,227
Total real estate loans		1,471,953		742,945		501,540		444,278		362,582		527,616		51,497		4,102,411
Commercial and industrial loans:
Payment performance
Performing		264,762		55,409		50,926		15,925		10,956		11,431		151,434		560,843
Nonperforming		—		3		708		—		4		273		—		988
Total commercial and industrial loans		264,762		55,412		51,634		15,925		10,960		11,704		151,434		561,831
Equipment financing agreements:
Payment performance
Performing		239,738		79,400		101,460		47,484		10,684		1,388		—		480,154
Nonperforming		716		981		3,575		1,329		346		198		—		7,145
Total equipment financing agreements		240,454		80,381		105,035		48,813		11,030		1,586		—		487,299
Total loans receivable:
Payment performance
Performing		1,976,453		877,754		653,926		507,667		382,548		536,902		202,931		5,138,181
Nonperforming		716		984		4,283		1,349		2,024		4,004		—		13,360
Total loans receivable	$	1,977,169	$	878,738	$	658,209	$	509,016	$	384,572	$	540,906	$	202,931	$	5,151,541

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

20

The following is an aging analysis of loans, including loans on nonaccrual status, disaggregated by loan class, as of the dates indicated:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(in thousands)
September 30, 2022
Real estate loans:
Commercial property
Retail	$	3,531	$	—	$	—	$	3,531	$	1,040,756	$	1,044,287	$	—
Hospitality		991		—		—		991		661,447		662,438		—
Other		214		—		269		483		2,044,395		2,044,878		—
Total commercial property loans		4,736		—		269		5,005		3,746,598		3,751,603		—
Construction		—		—		—		—		102,342		102,342		—
Residential		404		—		10		414		649,175		649,589		—
Total real estate loans		5,140		—		279		5,419		4,498,115		4,503,534		—
Commercial and industrial loans		82		35		—		117		731,916		732,033		—
Equipment financing agreements		3,666		1,130		1,586		6,382		559,042		565,424		—
Total loans receivable	$	8,888	$	1,165	$	1,865	$	11,918	$	5,789,073	$	5,800,991	$	—
December 31, 2021
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	970,134	$	970,134	$	—
Hospitality		556		—		—		556		717,136		717,692		—
Other		92		691		499		1,282		1,917,751		1,919,033		—
Total commercial property loans		648		691		499		1,838		3,605,021		3,606,859		—
Construction		—		—		—		—		95,006		95,006		—
Residential		570		750		556		1,876		398,670		400,546		—
Total real estate loans		1,218		1,441		1,055		3,714		4,098,697		4,102,411		—
Commercial and industrial loans		56		9		—		65		561,766		561,831		—
Equipment financing agreements		3,764		1,992		1,181		6,937		480,362		487,299		—
Total loans receivable	$	5,038	$	3,442	$	2,236	$	10,716	$	5,140,825	$	5,151,541	$	—

21

Nonaccrual Loans and Nonperforming Assets

The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of September 30, 2022 and December 31, 2021.

	September 30, 2022
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	3,530	$	—	$	—	$	3,530
Other		914		341		—		1,255
Total commercial property loans		4,444		341		—		4,785
Residential		912		15		—		927
Total real estate loans		5,356		356		—		5,712
Commercial and industrial loans		—		409		—		409
Equipment financing agreements		368		5,102		—		5,470
Total	$	5,724	$	5,867	$	—	$	11,591
	December 31, 2021
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,918	$	—	$	—	$	1,918
Other		1,745		337		—		2,082
Total commercial property loans		3,663		337		—		4,000
Residential		982		245		—		1,227
Total real estate loans		4,645		582		—		5,227
Commercial and industrial loans		8		980		—		988
Equipment financing agreements		1,172		5,973		—		7,145
Total	$	5,825	$	7,535	$	—	$	13,360

The Company did not recognize any interest income on nonaccrual loans for the three and nine months ended September 30, 2022 or 2021.

The following table details nonperforming assets as of the dates indicated:

	September 30, 2022		December 31, 2021
	(in thousands)
Nonaccrual loans	$	11,591	$	13,360
Loans receivable 90 days or more past due and still accruing		—		—
Total nonperforming loans receivable		11,591		13,360
Other real estate owned ("OREO")		792		675
Total nonperforming assets	$	12,383	$	14,035

OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021.

22

Troubled Debt Restructurings ("TDRs")

As of September 30, 2022 and December 31, 2021, TDRs were $1.6 million and $2.9 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise considered to a borrower for economic or legal reasons related to the borrower’s financial difficulties.

The following table details TDRs as of September 30, 2022 and December 31, 2021:

	Nonaccrual TDRs										Accrual TDRs
	Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total		Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total
	(in thousands)
September 30, 2022
Real estate loans	$	274	$	—	$	88	$	—	$	362	$	—	$	1,144	$	—	$	—	$	1,144
Commercial and industrial loans		—		111		—		—		111		—		—		—		—		—
Total	$	274	$	111	$	88	$	—	$	473	$	—	$	1,144	$	—	$	—	$	1,144
December 31, 2021
Real estate loans	$	346	$	2,046	$	372	$	—	$	2,764	$	—	$	—	$	—	$	—	$	—
Commercial and industrial loans		—		124		—		—		124		—		—		—		—		—
Total	$	346	$	2,170	$	372	$	—	$	2,888	$	—	$	—	$	—	$	—	$	—

The following table presents the number of loans by class modified as TDRs that occurred during the periods indicated, with their pre- and post-modification recorded amounts.

	Three Months Ended						Twelve Months Ended
	September 30, 2022						December 31, 2021
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(in thousands except for number of loans)
Real estate loans		—	$	—	$	—		—	$	—	$	—
Total		—	$	—	$	—		—	$	—	$	—
	Nine Months Ended						Twelve Months Ended
	September 30, 2022						December 31, 2021
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(in thousands except for number of loans)
Real estate loans		1	$	92	$	88		—	$	—	$	—
Total		1	$	92	$	88		—	$	—	$	—

All TDRs are individually analyzed using one of three criteria: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. At September 30, 2022 and December 31, 2021, the allowance resulting from the individual evaluation of TDRs was immaterial.

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. No loans defaulted during the three or nine months ended September 30, 2022 following modification. During the year ended December 31, 2021, no loans defaulted within the twelve-month period following modification.

23

Note 4 — Servicing Assets

The changes in servicing assets for the three and nine months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended September 30,
	2022			2021
	(in thousands)
Balance at beginning of period	$	7,354		$	6,199
Addition related to sale of SBA loans		828			1,171
Amortization		(758	)		(532	)
Balance at end of period	$	7,424		$	6,838

	Nine Months Ended September 30,
	2022			2021
	(in thousands)
Balance at beginning of period	$	7,080		$	6,212
Addition related to sale of SBA loans		2,377			2,328
Amortization		(2,033	)		(1,702	)
Balance at end of period	$	7,424		$	6,838

At September 30, 2022 and December 31, 2021, we serviced loans sold to unaffiliated parties of $505.2 million and $473.5 million, respectively. These represented loans that were sold for which the Bank continues to provide servicing. These loans are maintained off-balance sheet and are not included in the loans receivable balance. All of the loans serviced were SBA loans.

The Company recorded servicing fee income of $1.3 million and $1.1 million for the three months ended September 30, 2022 and 2021, respectively, and $3.7 million and $3.4 million for the nine months ended September 30, 2022 and 2021, respectively. Servicing fee income, net of the amortization of servicing assets, is included in other operating income in the consolidated statements of income. Amortization expense was $758,000 and $532,000 for the three months ended September 30, 2022 and 2021, respectively, and $2.0 million and $1.7 million for the nine months ended September 30, 2022 and 2021, respectively.

The fair value of servicing rights was $7.7 million at September 30, 2022. The fair value at September 30, 2022 was determined using discount rates ranging from 15.6 percent to 18.3 percent and prepayment speeds ranging from 11.0 percent to 17.0 percent, depending on the stratification of the specific right. The fair value of servicing rights was $8.1 million at December 31, 2021. The fair value at December 31, 2021 was determined using discount rates ranging from 10.4 percent to 16.7 percent and prepayment speeds ranging from 10.2 percent to 12.8 percent, depending on the stratification of the specific right.

Note 5 — Income Taxes

The Company’s income tax expense was $11.0 million and $10.7 million, representing an effective income tax rate of 28.8 percent and 28.6 percent for the three months ended September 30, 2022 and 2021, respectively. The Company’s income tax expense was $29.7 million and $27.0 million, representing an effective income tax rate of 28.9 percent and 29.3 percent for the nine months ended September 30, 2022 and 2021, respectively.

Management concluded that as of September 30, 2022 and December 31, 2021, a valuation allowance of $1.6 million was appropriate against certain state net operating loss carry forwards and certain tax credits. For all other deferred tax assets, management believes it was more likely than not these deferred tax assets will be realized principally through future taxable income and reversal of existing taxable temporary differences. Net income tax assets were $66.2 million and $44.1 million as of September 30, 2022 and December 31, 2021, respectively.

As of September 30, 2022, the Company was subject to examination by various taxing authorities for its federal tax returns for the periods ending on or after December 31, 2018 and state tax returns for the periods ending on or after December 31, 2017. During the quarter ended September 30, 2022, there was no material change to the Company’s uncertain tax positions. The Company does not expect its unrecognized tax positions to change significantly over the next twelve months.

24

Note 6 — Goodwill and other Intangibles

The third-party originators intangible of $0.5 million and goodwill of $11.0 million were recorded as a result of the acquisition of an equipment financing agreements portfolio in 2016. The core deposit intangible of $2.2 million was recognized for the core deposits acquired in a 2014 acquisition. The Company’s intangible assets were as follows for the periods indicated:

		September 30, 2022							December 31, 2021
	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Core deposit intangible	10 years	$	2,213	$	(1,998	)	$	215	$	2,213	$	(1,900	)	$	313
Third-party originators intangible	7 years		483		(461	)		22		483		(432	)		51
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,727	$	(2,460	)	$	11,267	$	13,727	$	(2,332	)	$	11,395

The Company performed an impairment analysis on its goodwill and other intangible assets as of December 31, 2021 and determined there was no impairment. No triggering event has occurred subsequent to December 31, 2021 that would require a reassessment of goodwill and other intangible assets.

Note 7 — Deposits

Time deposits exceeding the FDIC insurance limit of $250,000 as of September 30, 2022 and December 31, 2021 were $258.1 million and $173.5 million, respectively.

The scheduled maturities of time deposits are as follows for the periods indicated:

At September 30, 2022	Time Deposits of $250,000 or More		Other Time Deposits		Total
	(in thousands)
2022	$	73,828	$	105,193	$	179,021
2023		246,457		750,316		996,773
2024		—		65,396		65,396
2025		265		2,942		3,207
2026 and thereafter		263		3,017		3,280
Total	$	320,813	$	926,864	$	1,247,677
At December 31, 2021
2022	$	206,478	$	672,821	$	879,299
2023		1,522		40,564		42,086
2024		—		60,854		60,854
2025		265		1,919		2,184
2026 and thereafter		262		2,503		2,765
Total	$	208,527	$	778,661	$	987,188

Accrued interest payable on deposits was $2.2 million and $1.2 million at September 30, 2022 and December 31, 2021, respectively. Total deposits reclassified to loans due to overdrafts at September 30, 2022 and December 31, 2021 were $700,000 and $277,000, respectively.

25

Note 8 — Borrowings and Subordinated Debentures

At September 30, 2022, the Bank had no overnight advances and $100.0 million of term advances outstanding with the FHLB with a weighted average interest rate of 0.87 percent. At December 31, 2021, the Bank had no overnight advances and $137.5 million of term advances with the FHLB with a weighted average rate of 1.05 percent. Interest expense on borrowings for the three months ended September 30, 2022 and 2021 was $349,000 and $409,000, respectively. Interest expense on borrowings for the nine months ended September 30, 2022 and 2021 was $1.1 million and $1.3 million, respectively.

	September 30, 2022					December 31, 2021
	Outstanding Balance		Weighted Average Rate			Outstanding Balance		Weighted Average Rate
	(dollars in thousands)
Overnight advances	$	—		0.00	%	$	—		0.00	%
Advances due within 12 months		50,000		0.97	%		50,000		1.62	%
Advances due over 12 months through 24 months		37,500		0.40	%		50,000		0.97	%
Advances due over 24 months through 36 months		12,500		1.90	%		37,500		0.40	%
Outstanding advances	$	100,000		0.87	%	$	137,500		1.05	%

The following is financial data pertaining to FHLB advances:

	September 30, 2022			December 31, 2021
	(dollars in thousands)
Weighted-average interest rate at end of period		0.87	%		1.05	%
Weighted-average interest rate during the period		1.07	%		1.17	%
Average balance of FHLB advances	$	131,337		$	145,277
Maximum amount outstanding at any month-end	$	215,000		$	162,500

The Bank maintains a secured credit facility with the FHLB, allowing the Bank to borrow on an overnight and term basis. The Bank had $2.36 billion and $2.30 billion of loans pledged as collateral with the FHLB as of September 30, 2022 and December 31, 2021, respectively. The FHLB statutory lending limit was $1.86 billion and $1.80 billion at September 30, 2022 and December 31, 2021, respectively. The remaining available borrowing capacity was $1.39 billion and $1.61 billion at September 30, 2022 and December 31, 2021, respectively.

The Bank also had securities with market values of $24.5 million and $34.7 million at September 30, 2022 and December 31, 2021, respectively, pledged with the FRB, which provided $23.0 million and $32.8 million in available borrowing capacity through the Fed Discount Window as of September 30, 2022 and December 31, 2021, respectively.

On August 20, 2021, the Company issued $110.0 million of Fixed-to-Floating Subordinated Notes (“2021 Notes”) with a maturity date of September 1, 2031. The 2021 Notes have an initial fixed interest rate of 3.75 percent per annum, payable semiannually in arrears on March 1 and September 1 of each year, up to but excluding September 1, 2026. From and including September 1, 2026 and thereafter, the 2021 Notes will bear interest at a floating rate per annum equal to the Benchmark rate (which is expected to be the Three-Month Term SOFR) plus 310 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. If the then current three-month term SOFR rate is less than zero, the three-month SOFR will be deemed to be zero. Debt issuance cost was $2.1 million, which is being amortized through the 2021 Notes’ maturity date. At September 30, 2022 and December 31, 2021, the balance of the 2021 Notes included in the Company’s Consolidated Balance Sheet, net of issuance cost, was $108.1 million and $108.0 million, respectively.

The Company issued $100.0 million of Fixed-to-Floating Subordinated Notes (“2027 Notes”) on March 21, 2017, with a maturity on March 30, 2027. The 2027 Notes had an initial fixed interest rate of 5.45 percent per annum. From and including March 30, 2022 and thereafter, the 2027 Notes bore interest at a floating rate equal to the then current three-month LIBOR, as calculated on each applicable date of determination, plus 3.315 percent payable quarterly.

On March 30, 2022, the Company redeemed its 2027 Notes. A portion of the redemption was funded with the proceeds from the Company’s 2021 subordinated debt offering. The redemption price for each of the 2027 Notes equaled 100 percent of the outstanding principal amount redeemed, plus any accrued and unpaid interest thereon. All interest accrued on the 2027 Notes ceased to accrue on and after March 30, 2022. Upon the redemption, the Company recognized a pre-tax charge of $1.1 million for the remaining unamortized debt issuance costs associated with the 2027 Notes.

At September 30, 2022 and December 31, 2021, the balance of the 2027 Notes included in the Company’s Consolidated Balance Sheet, net of debt issuance cost, was $0 and $86.2 million, respectively.

26

The Company assumed Junior Subordinated Deferrable Interest Debentures (“Subordinated Debentures”) as a result of an acquisition in 2014 with an unpaid principal balance of $26.8 million and an estimated fair value of $18.5 million. The $8.3 million discount is being amortized to interest expense through the debentures’ maturity date of March 15, 2036. A trust was formed in 2005 which issued $26.0 million of Trust Preferred Securities (“TPS”) at a 6.26 percent fixed rate for the first five years and a variable rate of three-month LIBOR plus 140 basis points thereafter. The TPS will be subject to mandatory redemption if the Subordinated Debentures are repaid by the Company. Interest is payable quarterly, and the Company has the option to defer interest payments on the Subordinated Debentures from time to time for a period not to exceed five consecutive years. At September 30, 2022 and December 31, 2021, the balance of Subordinated Debentures included in the Company’s Consolidated Balance Sheets, net of discount of $5.7 million and $6.0 million, was $21.1 million and $20.8 million, respectively. The amortization of discount was $104,000 and $102,000 for the three months ended September 30, 2022 and 2021, respectively, and $308,000 and $300,000 for the nine months ended September 30, 2022 and 2021, respectively.

Note 9 — Earnings Per Share

Earnings per share (“EPS”) is calculated on both a basic and a diluted basis. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted from the issuance of common stock that then shared in earnings, excluding common shares in treasury. For diluted EPS, the weighted-average number of common shares includes the impact of unvested performance-based restricted stock under the treasury method.

Unvested restricted stock containing rights to non-forfeitable dividends are considered participating securities prior to vesting and have been included in the earnings allocation in computing basic and diluted EPS under the two-class method.

The following table is a reconciliation of the components used to derive basic and diluted EPS for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(dollars in thousands, except per share amounts)
Basic EPS
Net income	$	27,169	$	26,565	$	72,915	$	65,346
Less: income allocated to unvested restricted stock		163		138		408		948
Income allocated to common shares	$	27,006	$	26,427	$	72,507	$	64,398
Weighted-average shares for basic EPS		30,314,439		30,474,391		30,289,068		30,222,978
Basic EPS (1)	$	0.89	$	0.87	$	2.39	$	2.13
Effect of dilutive stock options and unvested performance stock units		82,323		77,805		80,470		75,575
Diluted EPS
Income allocated to common shares	$	27,006	$	26,427	$	72,507	$	64,398
Weighted-average shares for diluted EPS		30,396,762		30,552,196		30,369,538		30,298,553
Diluted EPS (1)	$	0.89	$	0.86	$	2.39	$	2.13

(1)Per share amounts may not be able to be recalculated using net income and weighted-average shares presented above due to rounding.

There were no anti-dilutive stock options outstanding for the three months ended September 30, 2022 or 2021.

During the nine months ended September 30, 2022, the Company issued 38,036 performance stock units to executive officers from the 2021 Equity Compensation plan fair valued at $955,000 on the grant date of March 23, 2022. During the nine months ended September 30, 2021, the Company issued 42,626 performance stock units to executive officers from the 2013 Equity Compensation Plan fair valued at $784,000 on the grant date of March 24, 2021. These units have a three-year cliff vesting period and include dividend equivalent rights. Total performance stock units outstanding as of September 30, 2022 were 104,599 with an aggregate grant fair value of $2.0 million. As of September 30, 2022 and 2021, there were 104,599 and 66,563 performance stock units outstanding, respectively. In accordance with the treasury method, unvested performance stock units were included in the weighted average number of common shares for the diluted EPS calculation in the table above.

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Note 10 — Regulatory Matters

Federal bank regulatory agencies require bank holding companies and banks to maintain a minimum ratio of qualifying total capital to risk-weighted assets of 8.0 percent and a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0 percent. In addition to the risk-based guidelines, federal bank regulatory agencies require bank holding companies and banks to maintain a minimum ratio of Tier 1 capital to average assets, referred to as the leverage ratio, of 4.0 percent.

In order for banks to be considered “well capitalized,” federal bank regulatory agencies require a minimum ratio of qualifying total capital to risk-weighted assets of 10.0 percent and a minimum ratio of Tier 1 capital to risk-weighted assets of 8.0 percent. In addition to the risk-based guidelines, federal bank regulatory agencies require depository institutions to maintain a minimum ratio of Tier 1 capital to average assets, referred to as the leverage ratio, of 5.0 percent.

At September 30, 2022, the Bank’s capital ratios exceeded the minimum requirements for the Bank to be considered “well capitalized” and the Company exceeded all of its applicable minimum regulatory capital ratio requirements.

A capital conservation buffer of 2.5 percent must be met to avoid limitations on the ability of the Bank and the Company to pay dividends, repurchase shares or pay discretionary bonuses. The Bank's capital conservation buffer was 5.76 percent and 6.70 percent and the Company's capital conservation buffer was 5.55 percent and 5.93 percent as of September 30, 2022 and December 31, 2021, respectively.

In March 2020, federal banking agencies announced an interim final rule to delay the impact on regulatory capital arising from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company and the Bank adopted the capital transition relief over the permissible five-year period.

The capital ratios of Hanmi Financial and the Bank as of September 30, 2022 and December 31, 2021 were as follows:

						Minimum					Minimum to Be
						Regulatory					Categorized as
	Actual					Requirement					“Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
September 30, 2022
Total capital (to risk-weighted assets):
Hanmi Financial	$	879,761		14.38	%	$	489,404		8.00	%	N/A		N/A
Hanmi Bank	$	840,236		13.76	%	$	488,565		8.00	%	$	610,706		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	706,670		11.55	%	$	367,053		6.00	%	N/A		N/A
Hanmi Bank	$	777,145		12.73	%	$	366,424		6.00	%	$	488,565		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	685,531		11.21	%	$	275,290		4.50	%	N/A		N/A
Hanmi Bank	$	777,145		12.73	%	$	274,818		4.50	%	$	396,959		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	706,670		9.99	%	$	283,039		4.00	%	N/A		N/A
Hanmi Bank	$	777,145		11.02	%	$	282,187		4.00	%	$	352,734		5.00	%
December 31, 2021
Total capital (to risk-weighted assets):
Hanmi Financial	$	912,527		16.57	%	$	440,639		8.00	%	N/A		N/A
Hanmi Bank	$	809,279		14.70	%	$	440,493		8.00	%	$	550,616		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	657,250		11.93	%	$	330,479		6.00	%	N/A		N/A
Hanmi Bank	$	748,177		13.59	%	$	330,369		6.00	%	$	440,493		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	636,419		11.55	%	$	247,859		4.50	%	N/A		N/A
Hanmi Bank	$	748,177		13.59	%	$	247,777		4.50	%	$	357,900		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	657,250		9.63	%	$	273,133		4.00	%	N/A		N/A
Hanmi Bank	$	748,177		10.96	%	$	273,101		4.00	%	$	341,376		5.00	%

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Note 11 — Fair Value Measurements

Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are defined as follows:

•Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

•Level 2 - Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.

•Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, fair value is used on a non-recurring basis to evaluate assets or liabilities for impairment or for disclosure purposes.

We record securities available for sale at fair value on a recurring basis. Certain other assets, such as loans held for sale, impaired loans, OREO, and core deposit intangible, are recorded at fair value on a non-recurring basis. Non-recurring fair value measurements typically involve assets that are periodically evaluated for impairment and for which any impairment is recorded in the period in which the re-measurement is performed.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument below:

Securities available for sale - The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges. If quoted prices are not available, fair values are measured using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities, or other model-based valuation techniques requiring observable inputs other than quoted prices such as yield curve, prepayment speeds, and default rates. Level 1 securities include U.S. Treasury securities that are traded on an active exchange or by dealers or brokers in active over-the-counter markets. The fair value of these securities is determined by quoted prices on an active exchange or over-the-counter market. Level 2 securities primarily include U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities as well as municipal bonds in markets that are active. In determining the fair value of the securities categorized as Level 2, we obtain reports from nationally recognized broker-dealers detailing the fair value of each investment security held as of each reporting date. The broker-dealers use prices obtained from nationally recognized pricing services to value our fixed income securities. The fair value of the municipal securities is determined based on pricing data provided by nationally recognized pricing services. We review the prices obtained for reasonableness based on our understanding of the marketplace, and also consider any credit issues related to the bonds. As we have not made any adjustments to the market quotes provided to us and as they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy. Level 3 securities are instruments that are not traded in the market. As such, no observable market data for the instrument is available, which necessitates the use of significant unobservable inputs.

Derivatives – The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

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Loans held for sale - Loans held for sale includes the guaranteed portion of SBA 7(a) loans carried at the lower of cost or fair value. Management obtains quotes, bids or pricing indication sheets on all or part of the loans directly from the purchasing financial institutions. Premiums received or to be received on the quotes, bids or pricing indication sheets are indicative of the fact that cost is lower than fair value. At September 30, 2022 and December 31, 2021, the entire balance of loans held for sale was recorded at its cost. We record loans held for sale on a nonrecurring basis with Level 2 inputs.

Nonperforming loans – Nonaccrual loans receivable and loans 90-days past due and still accruing interest are considered nonperforming for reporting purposes and are measured and recorded at fair value on a non-recurring basis. All nonperforming loans with a carrying balance over $250,000 are individually evaluated for the amount of impairment, if any. Nonperforming loans with a carrying balance of $250,000 or less are evaluated collectively. However, from time to time, nonrecurring fair value adjustments to collateral dependent nonperforming loans are recorded based on either the current appraised value of the collateral, a Level 2 measurement, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, a Level 3 measurement.

OREO - Fair value of OREO is based primarily on third party appraisals, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Appraisals are required annually and may be updated more frequently as circumstances require and the fair value adjustments are made to OREO based on the updated appraised value of the property.

Servicing assets - On a quarterly basis, the Company utilizes a third party service to evaluate servicing assets related to loans sold to unaffiliated parties with servicing retained. Servicing assets are assessed for impairment or increased obligation based on fair value at each reporting date.

Other repossessed assets – Fair value of equipment from equipment financing agreements contracts is based primarily on a third party valuation service, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Valuations are required at the time the asset is repossessed and may be subsequently updated periodically due to the Company’s short-term possession of the asset prior to sale or as circumstances require and the fair value adjustments are made to the asset based on its value prior to sale.

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Assets and Liabilities Measured at Fair Value on a Recurring Basis

As of September 30, 2022 and December 31, 2021, assets and liabilities measured at fair value on a recurring basis are as follows:

	Level 1		Level 2		Level 3
			Significant
			Observable
	Quoted Prices in		Inputs with No
	Active Markets		Active Market		Significant
	for Identical		with Identical		Unobservable
	Assets		Characteristics		Inputs		Total Fair Value
	(in thousands)
September 30, 2022
Assets:
Securities available for sale:
U.S. Treasury securities	$	33,160	$	—	$	—	$	33,160
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		522,370		—		522,370
Collateralized mortgage obligations		—		86,406		—		86,406
Debt securities		—		127,634		—		127,634
Total U.S. government agency and sponsored agency obligations		—		736,410		—		736,410
Municipal bonds-tax exempt		—		60,581		—		60,581
Total securities available for sale	$	33,160	$	796,991	$	—	$	830,151
Derivative financial instruments	$	—	$	7,891	$	—	$	7,891
Liabilities:
Derivative financial instruments	$	—	$	7,724	$	—	$	7,724
December 31, 2021
Assets:
Securities available for sale:
U.S. Treasury securities	$	15,397	$	—	$	—	$	15,397
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		607,505		—		607,505
Collateralized mortgage obligations		—		93,604		—		93,604
Debt securities		—		115,896		—		115,896
Total U.S. government agency and sponsored agency obligations		—		817,005		—		817,005
Municipal bonds-tax exempt		—		78,388		—		78,388
Total securities available for sale	$	15,397	$	895,393	$	—	$	910,790
Derivative financial instruments	$	—	$	1,379	$	—	$	1,379
Liabilities:
Derivative financial instruments	$	—	$	1,360	$	—	$	1,360

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Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

As of September 30, 2022 and December 31, 2021, assets and liabilities measured at fair value on a non-recurring basis are as follows:

			Level 1		Level 2		Level 3
					Significant
					Observable
			Quoted Prices in		Inputs With No
			Active Markets		Active Market		Significant
			for Identical		With Identical		Unobservable
	Total		Assets		Characteristics		Inputs
	(in thousands)
September 30, 2022
Assets:
Collateral dependent loans (1)	$	5,051	$	—	$	—	$	5,051
Other real estate owned		792		—		—		792
Repossessed personal property		224		—		—		224
December 31, 2021
Assets:
Collateral dependent loans (2)	$	3,398	$	—	$	—	$	3,398
Other real estate owned		675		—		—		675
Repossessed personal property		8		—		—		8

(1)Consisted of real estate loans of $5.1 million.

(2)Consisted of real estate loans of $3.4 million.

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The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
September 30, 2022
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	3,531	Market approach	Market data comparison	5% to 25% / 16%	(1)
Other		608	Market approach	Market data comparison	(35)% to 20% / (11)%	(1)
Residential		912	Market approach	Market data comparison	(19)% to 10% / 2%	(1)
Total real estate loans		5,051
Total	$	5,051
Other real estate owned	$	792	Market approach	Market data comparison	(20)% to 20% / (3)%
Repossessed personal property		224	Market approach	Market data comparison		(2)
December 31, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	1,917	Market approach	Market data comparison	(28)% to 23% / (6)%	(1)
Other		499	Market approach	Market data comparison	(20)% to 20% / 0%	(1)
Residential		982	Market approach	Market data comparison	(19)% to 8% / 3%	(1)
Total real estate loans		3,398
Total	$	3,398
Other real estate owned	$	675	Market approach	Market data comparison	(20)% to (5)% / (12)%
Repossessed personal property		8	Market approach	Market data comparison		(2)

(1)Appraisal reports utilize a combination of valuation techniques including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine the appraised value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation scenarios. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in this table represent increases to the sales comparison and negative adjustment represent decreases.

(2)The equipment is usually too low in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values.

ASC 825, Financial Instruments, requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured on a recurring basis or non-recurring basis are discussed above.

The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data in order to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

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Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825), among other provisions, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Other than certain financial instruments for which we had concluded that the carrying amounts approximate fair value, the fair value estimates shown below were based on an exit price notion as of September 30, 2022, as required by ASU 2016-01. The financial instruments for which we had concluded that the carrying amounts approximate fair value include, cash and due from banks, accrued interest receivable and payable, and noninterest-bearing deposits. The fair values of off-balance sheet items were based upon the difference between the current value of similar loans and the price at which the Bank has committed to make the loans.

The estimated fair values of financial instruments were as follows:

	September 30, 2022
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	275,159	$	275,159	$	—	$	—
Securities available for sale		830,151		33,160		796,991		—
Loans held for sale		10,044		—		10,562		—
Loans receivable, net of allowance for credit losses		5,729,407		—		—		5,640,118
Accrued interest receivable		15,356		15,356		—		—
Financial liabilities:
Noninterest-bearing deposits		2,771,498		—		2,771,498		—
Interest-bearing deposits		3,429,878		—		—		3,433,676
Borrowings and subordinated debentures		229,261		—		95,861		122,747
Accrued interest payable		2,180		2,180		—		—

	December 31, 2021
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	608,965	$	608,965	$	—	$	—
Securities available for sale		910,790		15,397		895,393		—
Loans held for sale		13,342		—		14,723		—
Loans receivable, net of allowance for credit losses		5,078,984		—		—		5,072,282
Accrued interest receivable		11,976		11,976		—		—
Financial liabilities:
Noninterest-bearing deposits		2,574,517		—		2,574,517		—
Interest-bearing deposits		3,211,752		—		—		3,211,708
Borrowings and subordinated debentures		352,506		—		137,198		213,179
Accrued interest payable		1,161		1,161		—		—

Note 12 — Off-Balance Sheet Commitments

The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk similar to the risk involved with on-balance sheet items.

The Bank’s exposure to losses in the event of non-performance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for extending loan facilities to customers. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, was based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, premises and equipment, and income-producing or borrower-occupied properties.

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The following table shows the distribution of total loan commitments as of the dates indicated:

	September 30,		December 31,
	2022		2021
	(in thousands)
Unused commitments to extend credit	$	746,354	$	626,474
Standby letters of credit		63,597		49,287
Commercial letters of credit		19,511		39,261
Total commitments	$	829,462	$	715,022

The allowance for credit losses related to off-balance sheet items was maintained at a level believed to be sufficient to absorb current expected lifetime losses related to these unfunded credit facilities. The determination of the allowance adequacy was based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities.

Activity in the allowance for credit losses related to off-balance sheet items was as follows for the periods indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in thousands)
Balance at beginning of period	$	2,313	$	3,643	$	2,586	$	2,792
Provision expense (recovery) for credit losses		936		1,208		663		2,059
Balance at end of period	$	3,249	$	4,851	$	3,249	$	4,851

Note 13 — Leases

The Company enters into leases in the normal course of business primarily for bank branch offices, back-office operations locations, business development offices, information technology data centers and information technology equipment. The Company’s leases have remaining terms ranging from one to thirteen years, some of which include renewal or termination options to extend the lease for up to five years.

The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease components in its real estate leases as part of the associated lease component. The Company has also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company’s balance sheet.

Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the term of the lease. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term.

As of September 30, 2022, the outstanding balances for our right-of-use asset and lease liability were $42.0 million and $45.8 million, respectively. The outstanding balances of the right-of-use asset and lease liability were $46.3 million and $49.7 million, respectively, as of December 31, 2021.

In determining the discount rates, since most of our leases do not provide an implicit rate, we used our incremental borrowing rate provided by the FHLB of San Francisco based on the information available at the commencement date to calculate the present value of lease payments.

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At September 30, 2022, future minimum rental commitments under these non-cancelable operating leases, with initial or remaining terms of one year or more, were as follows:

	Amount
	(in thousands)
2022	$	8,076
2023		7,465
2024		7,061
2025		5,881
2026		5,181
Thereafter		16,305
Remaining lease commitments		49,969
Interest		(4,194	)
Present value of lease liability	$	45,775

Weighted average remaining lease terms for the Company's operating leases were 7.25 years and 7.85 years as of September 30, 2022 and December 31, 2021, respectively. Weighted average discount rates used for the Company's operating leases were 2.38 percent as of September 30, 2022 and December 31, 2021. Net lease expense recognized for each of the three months and nine months ended September 30, 2022 and 2021 was $2.1 million and $6.2 million, respectively. This included operating lease costs of $2.0 million for each of the three months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2022 and 2021, operating lease costs were $5.9 million and $6.1 million, respectively. Sublease income for operating leases was immaterial for the three and nine months ended September 30, 2022 and 2021.

Cash paid and included in cash flows from operating activities for amounts used in the measurement of the lease liability of the Company's operating leases was $1.9 million for each of the three months ended September 30, 2022 and 2021, and $5.9 million and $6.0 million for the nine months ended September 30, 2022 and 2021, respectively.

Note 14 — Liquidity

Hanmi Financial

As of September 30, 2022, Hanmi Financial had $14.9 million in cash on deposit with its bank subsidiary and $11.8 million of U.S. Treasury securities at fair value. As of December 31, 2021, the Company had $94.9 million in cash on deposit with its bank subsidiary. Management believes that Hanmi Financial, on a stand-alone basis, had adequate liquid assets to meet its current debt obligations.

Hanmi Bank

The principal objective of our liquidity management program is to maintain the Bank’s ability to meet the day-to-day cash flow requirements of our customers who wish either to withdraw funds or to draw upon credit facilities to meet their cash needs. Management believes that the Bank, on a stand-alone basis, has adequate liquid assets to meet its current obligations. The Bank’s primary funding source will continue to be deposits originating from its branch platform. The Bank’s wholesale funds historically consisted of FHLB advances and brokered deposits. As of September 30, 2022 and December 31, 2021, the Bank had $100.0 million and $137.5 million, respectively, of FHLB advances, and $93.3 million and $141.8 million, respectively, of brokered deposits.

We monitor the sources and uses of funds on a regular basis to maintain an acceptable liquidity position. The Bank’s primary source of borrowings is the FHLB, from which the Bank is eligible to borrow up to 30.0 percent of its assets. As of September 30, 2022 and December 31, 2021, the total borrowing capacity available, based on pledged collateral was $1.61 billion and $1.84 billion, respectively. The remaining available borrowing capacity was $1.39 billion and $1.61 billion as of September 30, 2022 and December 31, 2021, respectively.

The amount that the FHLB is willing to advance differs based on the quality and character of qualifying collateral pledged by the Bank, and the FHLB may adjust the advance rates for qualifying collateral upwards or downwards from time to time. To the extent deposit renewals and deposit growth are not sufficient to fund maturing and withdrawable deposits, repay maturing borrowings, fund existing and future loans, equipment financing agreements and securities, and otherwise fund working capital needs and capital expenditures, the Bank may utilize the remaining borrowing capacity from its FHLB borrowing arrangement.

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As a means of augmenting its liquidity, the Bank had an available borrowing source of $23.0 million from the Federal Reserve Discount Window, to which the Bank pledged securities with a carrying value of $28.6 million, with no borrowings as of September 30, 2022. The Bank also maintains a line of credit for repurchase agreements up to $100.0 million. The Bank also had three unsecured federal funds lines of credit totaling $115.0 million with no outstanding balances as of September 30, 2022.

Note 15 — Derivatives and Hedging Activities

The Company’s derivative financial instruments consist entirely of interest rate swap agreements between the Company and its customers and other third party counterparties. The Company enters into “back-to-back swap” arrangements whereby the Company executes interest rate swap agreements with its customers and acquires an offsetting swap position from a third party counterparty. These derivative financial statements are accounted for at fair value, with changes in fair value recognized in the Company’s Consolidated Statements of Income.

The table below presents the fair value of the Company’s derivative financial instruments as well as their location on the Balance Sheet as of September 30, 2022 and December 31, 2021.

As of September 30, 2022	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	61,589	Other Assets	$	7,891	$	61,589	Other Liabilities	$	7,724
Total derivatives not designated as hedging instruments				$	7,891				$	7,724
As of December 31, 2021	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	61,968	Other Assets	$	1,379	$	61,968	Other Liabilities	$	1,360
Total derivatives not designated as hedging instruments				$	1,379				$	1,360

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement for the three and nine months ended September 30, 2022 and 2021.

Derivatives Not Designated as Hedging Instruments under Subtopic 815-20	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
		(in thousands)
Interest rate products	Other income	$	35	$	7	$	148	$	92
Total		$	35	$	7	$	148	$	92

The Company did not recognize any fee income from its derivative financial instruments for the three and nine months ended September 30, 2022 or 2021.

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The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2022 and December 31, 2021. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the Consolidated Balance Sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the Consolidated Balance Sheets.

Offsetting of Derivative Assets
As of September 30, 2022
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
	(in thousands)
Derivatives	$	7,891	$	—	$	7,891	$	7,724	$	167	$	—
Offsetting of Derivative Liabilities
As of September 30, 2022
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
	(in thousands)
Derivatives	$	7,724	$	—	$	7,724	$	7,724	$	—	$	—
Offsetting of Derivative Assets
As of December 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
	(in thousands)
Derivatives	$	1,379	$	—	$	1,379	$	1,360	$	19	$	—
Offsetting of Derivative Liabilities
As of December 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
	(in thousands)
Derivatives	$	1,360	$	—	$	1,360	$	1,360	$	—	$	—

The Company has agreements with each of its derivative counterparties that contain a provision stating if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. In addition, these agreements may also require the Company to post additional collateral should it fail to maintain its status as a well- or adequately- capitalized institution.

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As of September 30, 2022 and December 31, 2021, the fair value of derivatives in a net asset position for counterparty transactions, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $7.9 million and $1.4 million, respectively. As of September 30, 2022, the Company had not posted any collateral with its counterparties related to these agreements and is adequately collateralized since its net asset position was $167,000 ($7.9 million of fair value of assets less $7.7 million of fair value of liabilities) as of September 30, 2022. As of December 31, 2021, the Company had posted no collateral related to these agreements and was adequately collateralized since its net asset position was $19,000 ($1.4 million of fair value of assets less $1.4 million of fair value of liabilities).

Note 16 — Subsequent Events

As of the date of issuance of these financial statements, no subsequent events were identified.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is management’s discussion and analysis of our results of operations and financial condition as of and for the three and nine months ended September 30, 2022. This analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report on Form 10-K”) and with the unaudited consolidated financial statements and notes thereto set forth in this Quarterly Report on Form 10-Q for the period ended September 30, 2022 (this “Report”).

Forward-Looking Statements

Some of the statements contained in this Report are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements in this Report other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following: failure to maintain adequate levels of capital and liquidity to support our operations; the effect of potential future supervisory action against us or Hanmi Bank; the effect of our rating under the Community Reinvestment Act and our ability to address any issues raised in our regulatory exams; general economic and business conditions internationally, nationally and in those areas in which we operate; volatility and deterioration in the credit and equity markets; changes in consumer spending, borrowing and savings habits; availability of capital from private and government sources; demographic changes; competition for loans and deposits and failure to attract or retain loans and deposits; fluctuations in interest rates and a decline in the level of our interest rate spread; inflation; risks of natural disasters; the current or anticipated impact of military conflict, terrorism or other geopolitical events; a failure in or breach of our operational or security systems or infrastructure, including cyber-attacks; the failure to maintain current technologies; the inability to successfully implement future information technology enhancements; difficult business and economic conditions that can adversely affect our industry and business, including competition, fraudulent activity and negative publicity; risks associated with Small Business Administration loans; failure to attract or retain key employees; our ability to access cost-effective funding; fluctuations in real estate values; changes in accounting policies and practices; the continuing impact of the COVID-19 pandemic on our business and results of operation; changes in governmental regulation, including, but not limited to, any increase in Federal Deposit Insurance Corporation insurance premiums; the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests; the ability to identify a suitable strategic partner or to consummate a strategic transaction; the adequacy of our allowance for credit losses; our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to control expenses; changes in securities markets; and risks as it relates to cyber security against our information technology infrastructure and those of our third party providers and vendors.

For additional information concerning risks we face, see “Part II, Item 1A. Risk Factors” in this Report and “Item 1A. Risk Factors” in Part I of the 2021 Annual Report on Form 10-K. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

Critical Accounting Policies

We have established various accounting policies that govern the application of GAAP in the preparation of our financial statements. Our significant accounting policies are described in the Notes to the consolidated financial statements in our 2021 Annual Report on Form 10-K. We had no significant changes in our accounting policies since the filing of our 2021 Annual Report on Form 10-K.

Certain accounting policies require us to make significant estimates and assumptions that have a material impact on the carrying value of certain assets and liabilities, and we consider these critical accounting policies. For a description of these critical

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accounting policies, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” in our 2021 Annual Report on Form 10-K. Actual results could differ significantly from these estimates and assumptions, which could have a material impact on the carrying value of assets and liabilities at the balance sheet dates and our results of operations for the reporting periods. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Company’s Board of Directors.

Executive Overview

Net income was $27.2 million, or $0.89 per diluted share, for the three months ended September 30, 2022 compared with $26.6 million, or $0.86 per diluted share, for the same period a year ago. The increase in net income was primarily driven by an increase in net interest income of $13.1 million, offset by a $3.6 million decrease in noninterest income due to lower gain on SBA loan sales and an increase in credit loss expense of $7.8 million. The comparative increase in credit loss expense during the third quarter of 2022 was due to a $7.2 million recovery of credit loss expense in the third quarter of 2021.

For the nine months ended September 30, 2022, net income was $72.9 million, or $2.39 per diluted share, compared with $65.3 million, or $2.13 per diluted share, for the same period a year ago. The increase in net income for the nine months ended September 30, 2022 reflected an increase in net interest income of $27.5 million, offset by increases of $9.2 million in credit loss expense, $3.6 million in other noninterest expense and $4.5 million in noninterest income.

Other financial highlights include the following:

•Cash and due from banks decreased $333.8 million to $275.2 million as of September 30, 2022 from $609.0 million at December 31, 2021, primarily as excess liquidity was used to fund strong loan production and the redemption of subordinated debentures.

•Securities decreased $80.6 million to $830.2 million at September 30, 2022 from $910.8 million at December 31, 2021, attributable to the impact of unrealized losses from rising interest rates.

•Loans receivable, before the allowance for credit losses, were $5.80 billion at September 30, 2022 compared with $5.15 billion at December 31, 2021.

•Deposits were $6.20 billion at September 30, 2022 compared with $5.79 billion at December 31, 2021.

•Subordinated debentures and borrowings decreased $123.2 million to $229.3 million at September 30, 2022 from $352.5 million at December 31, 2021, primarily due to the $100.0 million redemption of the 2027 Notes.

Results of Operations

Net Interest Income

Our primary source of revenue is net interest income, which is the difference between interest derived from earning assets, and interest paid on liabilities obtained to fund those assets. Our net interest income is affected by changes in the level and mix of interest-earning assets and interest-bearing liabilities, referred to as volume changes. Net interest income is also affected by changes in the yields earned on assets and rates paid on liabilities, referred to as rate changes. Interest rates charged on loans receivable are affected principally by changes to interest rates, the demand for loans receivable, the supply of money available for lending purposes, and other competitive factors. Those factors are, in turn, affected by general economic conditions and other factors beyond our control, such as federal economic policies, the general supply of money in the economy, legislative tax policies, governmental budgetary matters, and the actions of the Federal Reserve.

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The following table shows the average balance of assets, liabilities and stockholders’ equity; the amount of interest income, on a tax-equivalent basis, and interest expense; the average yield or rate for each category of interest-earning assets and interest-bearing liabilities; and the net interest spread and the net interest margin for the periods indicated. All average balances are daily average balances.

	Three Months Ended
	September 30, 2022								September 30, 2021
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
Assets	(dollars in thousands)
Interest-earning assets:
Loans receivable (1)	$	5,696,587		$	66,976		4.67	%	$	4,684,570		$	52,961		4.49	%
Securities (2)		956,989			3,272		1.40	%		878,866			1,865		0.87	%
FHLB stock		16,385			245		5.93	%		16,385			245		5.93	%
Interest-bearing deposits in other banks		181,401			957		2.09	%		872,783			329		0.15	%
Total interest-earning assets		6,851,362			71,450		4.15	%		6,452,604			55,400		3.41	%
Noninterest-earning assets:
Cash and due from banks		66,865								64,454
Allowance for credit losses		(73,338	)							(83,252	)
Other assets		250,500								223,261
Total assets	$	7,095,389							$	6,657,067
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	121,269		$	32		0.10	%	$	115,233		$	15		0.05	%
Money market and savings		2,079,490			3,807		0.73	%		2,033,876			1,207		0.24	%
Time deposits		1,120,149			2,728		0.97	%		1,061,359			1,244		0.46	%
Total interest-bearing deposits		3,320,908			6,567		0.78	%		3,210,468			2,466		0.30	%
Borrowings		123,370			387		1.24	%		143,750			409		1.13	%
Subordinated debentures		129,176			1,410		4.37	%		163,340			2,545		6.23	%
Total interest-bearing liabilities		3,573,454			8,364		0.93	%		3,517,558			5,420		0.61	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		2,717,810								2,444,759
Other liabilities		112,336								79,348
Stockholders’ equity		691,789								615,402
Total liabilities and stockholders’ equity	$	7,095,389							$	6,657,067
Net interest income				$	63,086							$	49,980
Cost of deposits (3)							0.43	%							0.17	%
Net interest spread (taxable equivalent basis) (4)							3.22	%							2.80	%
Net interest margin (taxable equivalent basis) (5)							3.66	%							3.07	%

(1)Loans receivable include loans held for sale and exclude the allowance for credit losses. Nonaccrual loans receivable are included in the average loans receivable balance.

(2)Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

(3)Represents interest expense on deposits as a percentage of all interest-bearing and noninterest-bearing deposits.

(4)Represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.

(5)Represents net interest income as a percentage of average interest-earning assets.

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The table below shows changes in interest income and interest expense and the amounts attributable to variations in interest rates and volumes for the periods indicated. The variances attributable to simultaneous volume and rate changes have been allocated to the change due to volume and the change due to rate categories in proportion to the relationship of the absolute dollar amount attributable solely to the change in volume and to the change in rate.

	Three Months Ended
	September 30, 2022 vs September 30, 2021
	Increases (Decreases) Due to Change In
	Volume			Rate			Total
	(in thousands)
Interest and dividend income:
Loans receivable (1)	$	11,412		$	2,603		$	14,015
Securities (2)		166			1,241			1,407
FHLB stock		—			—			—
Interest-bearing deposits in other banks		(261	)		889			628
Total interest and dividend income		11,317			4,733			16,050
Interest expense:
Demand: interest-bearing	$	1		$	16		$	17
Money market and savings		28			2,572			2,600
Time deposits		69			1,415			1,484
Borrowings		(54	)		32			(22	)
Subordinated debentures		(528	)		(607	)		(1,135	)
Total interest expense		(484	)		3,428			2,944
Change in net interest income	$	11,801		$	1,305		$	13,106

(1)Loans receivable include loans held for sale and exclude the allowance for credit losses. Nonaccrual loans receivable are included in the average loans receivable balance.

(2)Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

For the three months ended September 30, 2022 and 2021, net interest income was $63.1 million and $50.0 million, respectively. The net interest spread and net interest margin, on a taxable equivalent basis, for the quarter ended September 30, 2022, were 3.22 percent and 3.66 percent, respectively, compared with 2.80 percent and 3.07 percent, respectively, for the same period in 2021. Interest and dividend income increased $16.1 million, or 29.0 percent, to $71.5 million for the three months ended September 30, 2022 from $55.4 million for the same period in 2021 due to higher average interest-earning asset balances and yields. Interest expense increased $2.9 million, or 54.3 percent, to $8.4 million for the three months ended September 30, 2022 from $5.4 million for the same period in 2021 primarily due to higher deposit rates due to the rising interest rate environment offset by lower subordinated debenture costs.

The average balance of interest earning assets increased $398.8 million, or 6.2 percent, to $6.85 billion for the three months ended September 30, 2022 from $6.45 billion for the three months ended September 30, 2021. The average balance of loans increased $1.01 billion, or 21.6 percent, to $5.70 billion for the three months ended September 30, 2022 from $4.68 billion for the three months ended September 30, 2021 due mainly to strong loan production. The average balance of securities increased $78.1 million, or 8.9 percent, to $957.0 million for the three months ended September 30, 2022 from $878.9 million for the three months ended September 30, 2021. Interest-bearing deposits at other banks decreased $691.4 million to $181.4 million for the three months ended September 30, 2021, as excess funds were used to fund loan and securities growth.

The average yield on interest-earning assets, on a taxable equivalent basis, increased 74 basis points to 4.15 percent for the three months ended September 30, 2022 from 3.41 percent for the three months ended September 30, 2021, mainly due to the higher interest rate environment. The average yield on loans increased to 4.67 percent for the three months ended September 30, 2022 from 4.49 percent for the three months ended September 30, 2021, driven mainly by the higher interest rate environment. The average yield on securities, on a taxable equivalent basis, increased to 1.40 percent for the three months ended September 30, 2022 from 0.87 percent for the three months ended September 30, 2021 reflecting the rising market interest rate environment. The average yield on interest-bearing deposits in other banks increased 194 basis points to 2.09 percent for the three months ended September 30, 2022 from 0.15 percent for the three months ended September 30, 2021 mainly due to higher market rates.

The average balance of interest-bearing liabilities increased $55.9 million, or 1.6 percent, to $3.57 billion for the three months ended September 30, 2022 compared to $3.52 billion for the three months ended September 30, 2021. The average balance

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of time deposits, and money market and savings accounts increased $58.8 million and $45.6 million, respectively, offset by decreases in the average balance of borrowings and subordinated debentures of $20.4 million and $34.2 million, respectively.

The average cost of interest-bearing liabilities was 0.93 percent and 0.61 percent for the three months ended September 30, 2022 and 2021, respectively. The average cost of subordinated debentures decreased 186 basis points to 4.37 percent for the three months ended September 30, 2022 compared to 6.23 percent for the three months ended September 30, 2021 due to the lower interest cost of the 2021 Notes and the redemption of the 2027 Notes. The average cost of borrowings increased 11 basis points to 1.24 percent for the three months ended September 30, 2022 compared to 1.13 percent for the three months ended September 30, 2021. The average cost of interest-bearing deposits increased 48 basis points to 0.78 percent for the three months ended September 30, 2022 compared to 0.30 percent for the three months ended September 30, 2021.

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The following table shows: the average balance of assets, liabilities and stockholders’ equity; the amount of interest income, on a tax-equivalent basis, and net interest expense; the average yield or rate for each category of interest-earning assets and interest-bearing liabilities; and the net interest spread and the net interest margin for the periods indicated. All average balances are daily average balances.

	Nine Months Ended
	September 30, 2022								September 30, 2021
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
Assets	(dollars in thousands)
Interest-earning assets:
Loans receivable (1)	$	5,501,957		$	180,755		4.39	%	$	4,759,980		$	156,361		4.39	%
Securities (2)		944,359			8,718		1.89	%		822,282			4,409		0.73	%
FHLB stock		16,385			735		6.00	%		16,385			693		5.66	%
Interest-bearing deposits in other banks		269,772			1,366		0.68	%		644,521			601		0.12	%
Total interest-earning assets		6,732,473			191,574		3.81	%		6,243,168			162,064		3.47	%
Noninterest-earning assets:
Cash and due from banks		65,911								60,923
Allowance for credit losses		(73,471	)							(86,970	)
Other assets		245,259								225,687
Total assets	$	6,970,172							$	6,442,808
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	122,964		$	68		0.07	%	$	110,200		$	44		0.05	%
Money market and savings		2,108,232			6,566		0.42	%		2,011,242			3,984		0.26	%
Time deposits		984,517			4,404		0.60	%		1,144,942			5,391		0.63	%
Total interest-bearing deposits		3,215,713			11,038		0.46	%		3,266,384			9,419		0.39	%
Borrowings		131,364			1,113		1.13	%		147,924			1,332		1.20	%
Subordinated debentures		156,817			6,337		5.39	%		134,012			5,759		5.73	%
Total interest-bearing liabilities		3,503,894			18,488		0.70	%		3,548,320			16,510		0.62	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		2,689,807								2,221,373
Other liabilities		101,685								75,720
Stockholders’ equity		674,786								597,395
Total liabilities and stockholders’ equity	$	6,970,172							$	6,442,808
Net interest income				$	173,086							$	145,554
Cost of deposits (3)							0.25	%							0.23	%
Net interest spread (taxable equivalent basis) (4)							3.10	%							2.85	%
Net interest margin (taxable equivalent basis) (5)							3.44	%							3.12	%

(1)Loans receivable include loans held for sale and exclude the allowance for credit losses. Nonaccrual loans receivable are included in the average loans receivable balance.

(2)Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

(3)Represents interest expense on deposits as a percentage of all interest-bearing and noninterest-bearing deposits.

(4)Represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.

(5)Represents net interest income as a percentage of average interest-earning assets.

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The following table shows changes in interest income (on a tax-equivalent basis), interest expense and the amounts attributable to variation in interest rates and volumes for the periods indicated. The variances attributable to simultaneous volume and rate changes have been allocated to the change due to volume and rate categories in proportion to the relationship of the absolute dollar amount attributable solely to the change in volume and rate.

	Nine Months Ended
	September 30, 2022 vs September 30, 2021
	Increases (Decreases) Due to Change In
	Volume			Rate			Total
	(in thousands)
Interest and dividend income:
Loans receivable (1)	$	24,272		$	122		$	24,394
Securities (2)		655			3,654			4,309
FHLB stock		—			42			42
Interest-bearing deposits in other banks		(349	)		1,114			765
Total interest and dividend income		24,578			4,932			29,510
Interest expense:
Demand: interest-bearing	$	5		$	19		$	24
Money market and savings		194			2,388			2,582
Time deposits		(755	)		(232	)		(987	)
Borrowings		(154	)		(65	)		(219	)
Subordinated debentures		974			(396	)		578
Total interest expense		264			1,714			1,978
Change in net interest income	$	24,314		$	3,218		$	27,532

(1)Loans receivable include loans held for sale and exclude the allowance for credit losses. Nonaccrual loans receivable are included in the average loans receivable balance.

(2)Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

For the nine months ended September 30, 2022 and 2021, net interest income was $173.1 million and $145.6 million, respectively. The $27.5 million increase was primarily driven by a $29.5 million, or 18.2 percent, year over year increase in interest income due to higher yields and average balances of interest earning assets. Interest expense increased $2.0 million, or 12.0 percent, to $18.5 million for the nine months ended September 30, 2022 from $16.5 million for the same period in 2021. Higher rates on interest bearing deposits drove a $1.6 million increase in interest expense on deposits. Additionally, interest expense on subordinated debentures increased by $0.6 million due to the issuance of the 2021 Notes and the pre-tax charge of $1.1 million incurred in connection with the redemption of the 2027 Notes during the first quarter of 2022. Offsetting the increases in interest expense on deposits and subordinated debentures was a decrease of $0.2 million in interest expense on borrowings primarily due to lower average balances.

The average balance of interest earning assets increased $489.3 million, or 7.8 percent, to $6.73 billion for the nine months ended September 30, 2022 from $6.24 billion for the nine months ended September 30, 2021. The average balance of loans increased $742.0 million, or 15.6 percent, to $5.50 billion for the nine months ended September 30, 2022 from $4.76 billion for the nine months ended September 30, 2021 due mainly to strong loan production. The average balance of securities increased $122.1 million, or 14.8 percent, to $944.4 million for the nine months ended September 30, 2022 from $822.3 million for the nine months ended September 30, 2021. Interest-bearing deposits at other banks decreased $374.7 million to $269.8 million for the nine months ended September 30, 2021, as excess liquidity was used to fund loan growth and additional securities purchases.

The average yield on interest-earning assets, on a taxable equivalent basis, increased 34 basis points to 3.81 percent for the nine months ended September 30, 2022 from 3.47 percent for the nine months ended September 30, 2021, mainly due to higher average loan and securities balances and the rising interest rate environment. The average yield on loans was 4.39 percent for both the nine months ended September 30, 2022 and September 30, 2021. The average yield on securities, on a taxable equivalent basis, increased to 1.89 percent for the nine months ended September 30, 2022 from 0.73 percent for the nine months ended September 30, 2021 reflecting the rising market interest rates environment. The average yield on interest-bearing deposits with other banks increased 56 basis points to 0.68 percent for the nine months ended September 30, 2022 from 0.12 percent for the nine months ended September 30, 2021 reflecting the rising market interest rates environment.

The average balance of interest-bearing liabilities decreased $44.4 million, or 1.3 percent, to $3.50 billion for the nine months ended September 30, 2022 compared to $3.55 billion for the nine months ended September 30, 2021. The average balance

46

of time deposits and borrowings decreased $160.4 million and $16.6 million, respectively, offset by increases in the average balances of $97.0 million in money market and savings accounts and $22.8 million in subordinated debentures due to the 2021 Notes issued in August 2021.

The average cost of interest-bearing liabilities was 0.70 percent and 0.62 percent for the nine months ended September 30, 2022 and 2021, respectively. The average cost of subordinated debentures decreased 34 basis points to 5.39 percent for the nine months ended September 30, 2022 compared to 5.73 percent for the nine months ended September 30, 2021. The lower interest cost of the 2021 Notes and the redemption of the 2027 Notes, offset by a pre-tax charge of $1.1 million incurred in connection with the redemption of the 2027 Notes was the reason for the decrease. The average cost of borrowings decreased 7 basis points to 1.13 percent for the nine months ended September 30, 2022 compared to 1.20 percent for the nine months ended September 30, 2021. The average cost of interest-bearing deposits increased 7 basis points to 0.46 percent for the nine months ended September 30, 2022 compared to 0.39 percent for the nine months ended September 30, 2021.

Credit Loss Expense

For the third quarter of 2022, the Company recorded $0.6 million of credit loss expense, comprised of a $0.4 million recovery of credit loss expense for loan losses, and a $0.9 million provision for off-balance sheet items. For the same period in 2021, the Company recorded a $7.2 million recovery of credit loss expense, comprised of a $7.6 million negative provision for loan losses, a recovery of $0.5 million from an SBA guarantee repair loss allowance, a $0.4 million reduction in the allowance for losses on accrued interest receivable for loans current or previously modified under the CARES Act, offset partially by a $1.2 million provision for off-balance sheet items. The increase in credit loss expense for the three months ended September 30, 2022 as compared to the same period in 2021 resulted from strong loan growth, offset by a net reduction in specific qualitative factors allocated to criticized hospitality loans impacted by the pandemic.

For the nine months ended September 30, 2022, the Company recorded $0.8 million of credit loss expense, comprised of a $0.1 million provision for loan losses, and a $0.7 million provision for off-balance sheet items. For the same period in 2021, credit loss expense recovery was $8.5 million, comprised of a $10.8 million recovery for loan losses and a $1.4 million reduction in the allowance for accrued interest receivable for current or previously modified loans, offset partially by a $1.6 million provision for an SBA guarantee repair loss and a $2.1 million provision for off-balance sheet. The credit loss expense for the nine months ended September 30, 2022 as compared to the same period in 2021 resulted from strong loan growth, offset by a net reduction in specific qualitative factors allocated to criticized hospitality loans impacted by the pandemic.

See also “Allowance for Credit Losses and Allowance for Credit Losses Related to Off-Balance Sheet Items” for further details.

Noninterest Income

The following table sets forth the various components of noninterest income for the periods indicated:

	Three Months Ended September 30,				Increase (Decrease)			Increase (Decrease)
	2022		2021		Amount			Percent
	(in thousands)
Service charges on deposit accounts	$	2,996	$	3,437	$	(441	)		(12.83	)%
Trade finance and other service charges and fees		1,132		1,188		(56	)		(4.71	)%
Servicing income		635		768		(133	)		(17.32	)%
Bank-owned life insurance income		245		251		(6	)		(2.39	)%
All other operating income		1,656		978		678			69.33	%
Service charges, fees & other		6,664		6,622		42			0.63	%
Gain on sale of SBA loans		2,250		5,503		(3,253	)		(59.11	)%
Gain on sale of PPP loans		—		339		(339	)		(100.00	)%
Gain on sale of bank premises		—		45		(45	)		(100.00	)%
Total noninterest income	$	8,914	$	12,509	$	(3,595	)		(28.74	)%

For the three months ended September 30, 2022, noninterest income was $8.9 million, a decrease of $3.6 million, or 28.7 percent, compared with $12.5 million for the same period in 2021. The decrease was mainly attributable to a $3.6 million decrease in the gain on loan sales resulting from lower volume and net trade premiums.

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The following table sets forth the various components of noninterest income for the periods indicated:

	Nine Months Ended September 30,				Increase (Decrease)			Increase (Decrease)
	2022		2021		Amount			Percent
	(in thousands)
Service charges on deposit accounts	$	8,745	$	8,036	$	709			8.82	%
Trade finance and other service charges and fees		3,690		3,468		222			6.40	%
Servicing income		2,032		2,154		(122	)		(5.66	)%
Bank-owned life insurance income		735		759		(24	)		(3.16	)%
All other operating income		3,996		2,840		1,156			40.70	%
Service charges, fees & other		19,198		17,257		1,941			11.25	%
Gain on sale of SBA loans		7,545		10,478		(2,933	)		(27.99	)%
Gain on sale of PPP loans		—		2,997		(2,997	)		(100.00	)%
Net gain on sales of securities		—		99		(99	)		(100.00	)%
Gain on sale of bank premises		—		45		(45	)		(100.00	)%
Legal settlement		—		325		(325	)		(100.00	)%
Total noninterest income	$	26,743	$	31,201	$	(4,458	)		(14.29	)%

For the nine months ended September 30, 2022, noninterest income was $26.7 million, a decrease of $4.5 million, or 14.3 percent, compared with $31.2 million for the same period in 2021. The decrease was mainly attributable to a $6.0 million decrease in the gain on loan sales, partially offset by a $1.2 million increase in all other operating expenses and $0.7 million in service charges.

Noninterest Expense

The following table sets forth the components of noninterest expense for the periods indicated:

	Three Months Ended September 30,						Increase (Decrease)			Increase (Decrease)
	2022			2021			Amount			Percent
	(in thousands)
Salaries and employee benefits	$	19,365		$	18,795		$	570			3.03	%
Occupancy and equipment		4,736			5,037			(301	)		(5.98	)%
Data processing		3,352			2,934			418			14.25	%
Professional fees		1,249			1,263			(14	)		(1.11	)%
Supplies and communications		710			741			(31	)		(4.18	)%
Advertising and promotion		1,186			953			233			24.45	%
All other operating expenses		2,698			2,906			(208	)		(7.16	)%
Subtotal		33,296			32,629			667			2.04	%
Other real estate owned expense (income)		2			23			(21	)		(91.30	)%
Repossessed personal property expense (income)		(23	)		(150	)		127			(84.67	)%
Total noninterest expense	$	33,275		$	32,502		$	773			2.38	%

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For the three months ended September 30, 2022, noninterest expense was $33.3 million, an increase of $0.8 million, or 2.4 percent, compared with $32.5 million for the same period in 2021. Salaries and employee benefits increased $0.6 million primarily as a result of an increase in salary, bonus and incentive expenses. Data processing increased $0.4 million due to additional software licenses. Occupancy and equipment decreased due to lower rent/lease expense and depreciation.

The following table sets forth the components of noninterest expense for the periods indicated:

	Nine Months Ended September 30,						Increase (Decrease)			Increase (Decrease)
	2022			2021			Amount			Percent
	(in thousands)
Salaries and employee benefits	$	55,861		$	53,917		$	1,944			3.61	%
Occupancy and equipment		13,979			14,235			(256	)		(1.80	)%
Data processing		9,702			8,775			927			10.56	%
Professional fees		3,909			4,123			(214	)		(5.19	)%
Supplies and communications		1,956			2,231			(275	)		(12.33	)%
Advertising and promotion		2,664			1,685			979			58.10	%
All other operating expenses		8,346			7,889			457			5.79	%
Subtotal		96,417			92,855			3,562			3.84	%
Other real estate owned expense (income)		64			197			(133	)		(67.51	)%
Repossessed personal property expense (income)		(40	)		(234	)		194			(82.91	)%
Total noninterest expense	$	96,441		$	92,818		$	3,623			3.90	%

For the nine months ended September 30, 2022, noninterest expense was $96.4 million, an increase of $3.6 million, or 3.9 percent, compared with $92.8 million for the same period in 2021. Salaries and employee benefits increased $1.9 million primarily as a result of an increase in salary, bonus and incentive expenses. A $1.0 million increase in advertising and promotion expense was primarily related to branding and promotional campaigns. Data processing increased $0.9 million due to additional software licenses and other vendor processing fees.

Income Tax Expense

Income tax expense was $11.0 million and $10.7 million representing an effective income tax rate of 28.8 percent and 28.6 percent for the three months ended September 30, 2022 and 2021, respectively. The increase in the effective tax rate for the three months ended September 30, 2022, compared to the same period in 2021 was principally due to an increase in incremental tax charges resulting from increases related to the Company’s share-based compensation and higher pre-tax income.

Income tax expense was $29.7 million and $27.0 million representing an effective income tax rate of 28.9 percent and 29.3 percent for the nine months ended September 30, 2022 and 2021, respectively. The decrease in the effective tax rate for the nine months ended September 30, 2022, compared to the same period in 2021 was principally due to an increase in tax benefits resulting from increasing tax-exempt interest, offset by higher pre-tax income.

Financial Condition

Securities

As of September 30, 2022, our securities portfolio consisted of U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities, tax-exempt municipal bonds and, to a lesser extent, U.S. Treasury securities. Most of these securities carry fixed interest rates. Other than holdings of U.S. government agency and sponsored agency obligations, there were no securities of any one issuer exceeding 10 percent of stockholders’ equity as of September 30, 2022 or December 31, 2021.

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The following table summarizes the contractual maturity schedule for securities, at amortized cost, and their cost weighted average yield, which is calculated using amortized cost as the weight, as of September 30, 2022:

						After One Year But					After Five Years But
	Within One Year					Within Five Years					Within Ten Years					After Ten Years					Total
	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
	(dollars in thousands)
Securities available for sale:
U.S. Treasury securities	$	4,990		2.97	%	$	29,886		2.01	%	$	—		0.00	%	$	—		0.00	%	$	34,876		2.14	%
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		4		2.78	%		7,696		2.41	%		6,092		2.95	%		601,543		1.46	%		615,335		1.49	%
Collateralized mortgage obligations		—		1.19	%		—		0.00	%		1,166		1.75	%		97,706		1.66	%		98,872		1.66	%
Debt securities		9,990		0.49	%		129,914		1.14	%		—		0.00	%		—		0.00	%		139,904		1.10	%
Total U.S. government agency and sponsored agency obligations		9,994		0.49	%		137,610		1.21	%		7,258		2.76	%		699,249		1.49	%		854,111		1.44	%
Municipal bonds-tax exempt		—		0.00	%		—		0.00	%		7,347		1.41	%		71,049		1.33	%		78,396		1.33	%
Total securities available for sale	$	14,984		1.32	%	$	167,496		1.36	%	$	14,605		2.08	%	$	770,298		1.47	%	$	967,383		1.46	%

Loans Receivable

As of September 30, 2022 and December 31, 2021, loans receivable (excluding loans held for sale), net of deferred loan fees and costs, discounts and allowance for credit losses, were $5.73 billion and $5.08 billion, respectively. The increase primarily reflected $1.64 billion in new loan production, offset by $668.3 million in loan sales and payoffs, and amortization and other reductions of $326.8 million. Loan production primarily consisted of commercial real estate of $637.2 million, commercial and industrial loans of $282.6 million and residential mortgages of $313.2 million.

The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses as of September 30, 2022. In addition, the table shows the distribution of such loans between those with floating or variable interest rates and those with fixed or predetermined interest rates.

	Within One Year		After One Year but Within Five Years		After Five Years but Within Fifteen Years		After Fifteen Years		Total
	(in thousands)
Real estate loans:
Commercial property
Retail	$	115,088	$	559,300	$	369,899	$	—	$	1,044,287
Hospitality		162,484		363,002		136,952		—		662,438
Other		196,355		1,242,906		484,274		121,343		2,044,878
Total commercial property loans		473,927		2,165,208		991,125		121,343		3,751,603
Construction		55,940		46,402		—		—		102,342
Residential		5,527		72		5,434		638,556		649,589
Total real estate loans		535,394		2,211,682		996,559		759,899		4,503,534
Commercial and industrial loans		353,258		314,812		63,963		—		732,033
Equipment financing agreements		20,217		495,169		50,038		—		565,424
Loans receivable	$	908,869	$	3,021,663	$	1,110,560	$	759,899	$	5,800,991
Loans with predetermined interest rates	$	378,669	$	2,175,749	$	251,351	$	239,028	$	3,044,797
Loans with variable interest rates		530,200		845,914		859,209		520,871		2,756,194

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The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses, with fixed or predetermined interest rates due after one year, as of September 30, 2022.

	After One Year but Within Three Years		After Three Years but Within Five Years		After Five Years but Within Fifteen Years		After Fifteen Years		Total
	(in thousands)
Real estate loans:
Commercial property
Retail	$	146,310	$	341,820	$	58,521	$	—	$	546,651
Hospitality		93,141		122,849		6,832		—		222,822
Other		368,822		558,603		120,532		8,839		1,056,796
Total commercial property loans		608,273		1,023,272		185,885		8,839		1,826,269
Construction		28,036		—		—		—		28,036
Residential		—		62		2,825		230,189		233,076
Total real estate loans		636,309		1,023,334		188,710		239,028		2,087,381
Commercial and industrial loans		11,030		9,907		12,602		—		33,539
Equipment financing agreements		176,247		318,922		50,039		—		545,208
Loans receivable	$	823,586	$	1,352,163	$	251,351	$	239,028	$	2,666,128

The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses, with floating or variable interest rates (including hybrids) due after one year, as of September 30, 2022.

	After One Year but Within Three Years		After Three Years but Within Five Years		After Five Years but Within Fifteen Years		After Fifteen Years		Total
	(in thousands)
Real estate loans:
Commercial property
Retail	$	47,614	$	23,555	$	311,378	$	—	$	382,547
Hospitality		136,243		10,770		130,120		—		277,133
Other		135,062		180,419		363,742		112,504		791,727
Total commercial property loans		318,919		214,744		805,240		112,504		1,451,407
Construction		18,366		—		—		—		18,366
Residential		10		—		2,609		408,367		410,986
Total real estate loans		337,295		214,744		807,849		520,871		1,880,759
Commercial and industrial loans		89,102		204,773		51,360		—		345,235
Loans receivable	$	426,397	$	419,517	$	859,209	$	520,871	$	2,225,994

Industry

As of September 30, 2022, the loan portfolio included the following concentrations of loans to one type of industry that were greater than 10.0 percent of loans receivable outstanding:

			Percentage of
	Balance as of		Loans Receivable
	September 30, 2022		Outstanding
	(in thousands)
Lessor of nonresidential buildings	$	1,787,374		30.8	%
Hospitality		714,663		12.3	%

Loan Quality Indicators

Loans 30 to 89 days past due and still accruing were 0.07 percent of loans at September 30, 2022, compared with 0.11 percent at December 31, 2021.

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At September 30, 2022 and December 31, 2021, there were no loans 90 days or more past due and still accruing.

Special mention loans were $123.0 million at September 30, 2022 compared with $95.3 million at December 31, 2021. The increase includes a $41.1 million current loan relationship due to turnover in executive management and delays in receipt of acceptable business borrowing certificates under an asset-based lending facility. The loan relationship is comprised of a $25.0 million asset-based line of credit (of which $18.0 million was outstanding at September 30, 2022), a $13.5 million commercial real estate loan and a $9.6 million commercial term loan. We are actively working with the borrower’s new management and its parent company to ensure satisfactory performance under the loan agreements. Reductions to special mention loans during the nine months ended September 30, 2022 included net upgrades to pass of $5.0 million and payoffs and paydowns of $8.4 million.

Classified loans were $47.7 million at September 30, 2022 compared with $60.6 million at December 31, 2021. The change reflects additions of $7.5 million and reductions (comprising upgrades, payments, payoffs, sales, and charge-offs) of $20.4 million.

Activity in criticized loans was as follows for the periods indicated:

	Special Mention			Classified
	(in thousands)
September 30, 2022
Balance at January 1, 2022	$	95,294		$	60,633
Additions		122,997			7,471
Reductions		(95,339	)		(20,365	)
Balance at September 30, 2022	$	122,952		$	47,739
December 31, 2021
Balance at January 1, 2021	$	76,978		$	140,169
Additions		146,226			60,083
Reductions		(127,910	)		(139,619	)
Balance at December 31, 2021	$	95,294		$	60,633

Nonperforming Assets

Nonperforming loans consist of loans receivable on nonaccrual status and loans 90 days or more past due and still accruing interest. Nonperforming assets consist of nonperforming loans and OREO. Loans are placed on nonaccrual status when, in the opinion of management, the full timely collection of principal or interest is in doubt. Generally, the accrual of interest is discontinued when principal or interest payments become more than 90 days past due, unless we believe the loan is adequately collateralized and in the process of collection. However, in certain instances, we may place a particular loan on nonaccrual status earlier, depending upon the individual circumstances surrounding the loan’s delinquency. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is reversed against current income. Subsequent collections of cash are applied as principal reductions when received, except when the ultimate collectability of principal is probable, in which case interest payments are credited to income. Nonaccrual loans may be restored to accrual status when principal and interest become current and full repayment is expected. Interest income is recognized on the accrual basis for impaired loans not meeting the criteria for nonaccrual. OREO consists of properties acquired by foreclosure or similar means, or vacant bank properties for which their usage for operations has ceased and management intends to offer for sale.

Except for nonaccrual loans, management is not aware of any other loans as of September 30, 2022 for which known credit problems of the borrower would cause serious doubts as to the ability of such borrowers to comply with their present loan or equipment financing agreement repayment terms, or any known events that would result in a loan or equipment financing agreement being designated as nonperforming at some future date. Management cannot, however, predict the extent to which a deterioration in general economic conditions, real estate values, increases in general rates of interest, inflation or changes in the financial condition or business of borrowers may adversely affect a borrower’s ability to pay.

Nonperforming loans were $11.6 million at September 30, 2022, or 0.20 percent of loans, compared with $13.4 million at December 31, 2021, or 0.26 percent of the portfolio. The change reflects reductions (comprising upgrades, payments, payoffs, sales, and charge-offs) of $11.5 million and additions of $9.7 million.

Nonperforming assets were $12.4 million at September 30, 2022, or 0.17 percent of total assets, compared with $14.0 million, or 0.20 percent, at December 31, 2021.

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Individually Evaluated Loans

The Company reviews loans on an individual basis when the loan does not share similar risk characteristics with loan pools.

Individually evaluated loans were $11.6 million and $13.4 million as of September 30, 2022 and December 31, 2021, respectively, representing a decrease of $1.8 million, or 13.5 percent. Specific allowances associated with individually evaluated loans decreased $0.5 million to $2.2 million as of September 30, 2022 compared with $2.8 million as of December 31, 2021.

For the three months ended September 30, 2022, no loans were restructured and subsequently classified as TDRs. For the nine months ended September 30, 2022, we restructured monthly payments for one loan, with a net carrying value of $92,000 at the time of modification, which was subsequently classified as a TDR. For the year ended December 31, 2021, no loans were restructured and subsequently classified as TDRs. Temporary payment structure modifications can include extending the maturity date, reducing the amount of principal and/or interest due monthly, and/or allowing for interest only monthly payments for six months or less.

As of September 30, 2022 and December 31, 2021, TDRs on accrual status were $1.1 million and $0, respectively. As of September 30, 2022 and December 31, 2021, restructured loans on nonaccrual status were $0.5 million and $2.9 million, respectively, and the allowance for credit losses relating to these loans, respectively, was immaterial.

Allowance for Credit Losses and Allowance for Credit Losses Related to Off-Balance Sheet Items

The Company’s estimate of the allowance for credit losses at September 30, 2022 and December 31, 2021 reflected losses expected over the remaining contractual life of the assets based on historical, current, and forward-looking information. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring.

Management selected three loss methodologies for the collective allowance estimation. At September 30, 2022, the Company used the discounted cash flow (“DCF”) method to estimate allowances for credit losses for the commercial and industrial loan portfolio, the Probability of Default/Loss Given Default (“PD/LGD”) method for the commercial real estate, construction, SBA and residential real estate portfolios, and the Weighted Average Remaining Maturity (“WARM”) method to estimate expected credit losses for the equipment financing agreements portfolio. Loans that do not share similar risk characteristics are individually evaluated for allowances.

For the loans utilizing the DCF method, the Company determined that four quarters represented a reasonable and supportable forecast period and reverted to a historical loss rate over twelve quarters on a straight-line basis. Reasonable and supportable forecasts of economic conditions are imbedded in the DCF model.

For each of the loan segments identified above, the Company applied an annualized historical PD/LGD using all available historical periods. The PD/LGD method incorporates a forecast of economic conditions into loss estimates using a qualitative adjustment.

The Company applied an expected loss ratio based on internal historical losses adjusted as appropriate for qualitative factors when applying the WARM method.

As of September 30, 2022 and December 31, 2021, the Company relied on the economic projections from Moody’s Analytics Economic Scenarios and Forecasts and the Federal Open Market Committee to inform its loss driver forecasts over the four-quarter forecast period. For all loan pools, the Company utilizes and forecasts the national unemployment rate as the primary loss driver.

To adjust the historical and forecast periods to current conditions, the Company applies various qualitative factors derived from market, industry or business specific data, changes in the underlying portfolio composition, trends relating to credit quality, delinquency, nonperforming and adversely rated equipment financing agreements, and reasonable and supportable forecasts of economic conditions.

The allowance for credit losses was $71.6 million at September 30, 2022 compared with $72.6 million at December 31, 2021. The allowance attributed to individually evaluated loans was $2.2 million at September 30, 2022 compared with $2.8 million at December 31, 2021. The allowance attributed to collectively evaluated loans was $69.3 million at September 30, 2022 compared

53

with $69.8 million at December 31, 2021, and considered the impact of changes in macroeconomic assumptions, including a deteriorating unemployment rate and rising interest rates for the subsequent four quarters.

The following table reflects our allocation of the allowance for credit losses by loan category as well as the amount of loans in each loan category, including related percentages:

	September 30, 2022										December 31, 2021
	Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans			Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans
	(dollars in thousands)
Real estate loans:
Commercial property
Retail	$	7,758		10.8	%	$	1,044,287		18.0	%	$	6,579		9.1	%	$	970,134		18.8	%
Hospitality		15,417		21.5	%		662,438		11.4	%		22,670		31.2	%		717,692		13.9	%
Other		15,450		21.7	%		2,044,878		35.3	%		15,065		20.8	%		1,919,033		37.3	%
Total commercial property loans		38,625		54.0	%		3,751,603		64.7	%		44,314		61.1	%		3,606,859		70.0	%
Construction		4,034		5.6	%		102,342		1.8	%		4,078		5.6	%		95,006		1.8	%
Residential		2,865		4.0	%		649,589		11.2	%		498		0.7	%		400,546		7.8	%
Total real estate loans		45,524		63.6	%		4,503,534		77.7	%		48,890		67.4	%		4,102,411		79.6	%
Commercial and industrial loans		14,876		20.8	%		732,033		12.6	%		12,418		17.1	%		561,831		10.9	%
Equipment financing agreements		11,184		15.6	%		565,424		9.7	%		11,249		15.5	%		487,299		9.5	%
Total	$	71,584		100.0	%	$	5,800,991		100.0	%	$	72,557		100.0	%	$	5,151,541		100.0	%

The following table sets forth certain ratios related to our allowance for credit losses at the dates presented:

	As of
	September 30, 2022			December 31, 2021
	(dollars in thousands)
Ratios:
Allowance for credit losses to loans receivable		1.23	%		1.41	%
Nonaccrual loans to loans		0.20	%		0.26	%
Allowance for credit losses to nonaccrual loans		617.58	%		543.09	%
Balance:
Nonaccrual loans at end of period	$	11,591		$	13,360
Nonperforming loans at end of period	$	11,591		$	13,360

As of September 30, 2022 and December 31, 2021, the allowance for credit losses related to off-balance sheet items, primarily unfunded loan commitments, was $3.2 million and $2.6 million, respectively. The Bank closely monitors the borrower’s repayment capabilities, while funding existing commitments to ensure losses are minimized. Based on management’s evaluation and analysis of portfolio credit quality and prevailing economic conditions, we believe these allowances were adequate for current expected lifetime losses in the loan portfolio and off-balance sheet exposure as of September 30, 2022.

The following table presents a summary of net charge-offs (recoveries) for the loan portfolio:

	Three Months Ended								Nine Months Ended
	Average Loans		Net Charge-Offs (Recoveries)			Net Charge-Offs (Recoveries) to Average Loans (1)			Average Loans		Net Charge-Offs (Recoveries)			Net Charge-Offs (Recoveries) to Average Loans (1)
	(dollars in thousands)
September 30, 2022
Commercial real estate loans	$	3,845,616	$	984			0.10	%	$	3,825,584	$	1,256			0.04	%
Residential loans		583,190		(1	)		(0.00	)%		488,420		(2	)		(0.00	)%
Commercial and industrial loans		713,746		(220	)		(0.12	)%		666,911		(592	)		(0.12	)%
Equipment financing agreements		554,035		347			0.25	%		521,042		431			0.11	%
Total	$	5,696,587	$	1,110			0.08	%	$	5,501,957	$	1,093			0.03	%
September 30, 2021
Commercial real estate loans	$	3,417,832	$	98			0.01	%	$	3,396,827	$	92			0.00	%
Residential loans		349,143		(1,260	)		(1.44	)%		335,663		(198	)		(0.08	)%
Commercial and industrial loans		478,861		(144	)		(0.12	)%		604,355		(52	)		(0.01	)%
Equipment financing agreements		438,734		441			0.40	%		423,135		3,199			1.01	%
Total	$	4,684,570	$	(865	)		(0.07	)%	$	4,759,980	$	3,041			0.09	%

54

(1)Annualized

For the three months ended September 30, 2022, gross charge-offs were $2.1 million, an increase of $1.1 million, from $1.0 million for the same period in 2021 and gross recoveries were $1.0 million, a decrease of $0.9 million, from $1.8 million for the three months ended September 30, 2021. Net loan charge-offs were $1.1 million, or 0.08 percent of average loans, compared with net loan recoveries of $0.9 million, or 0.07 percent of average loans, for the three months ended September 30, 2022 and 2021, respectively.

For the nine months ended September 30, 2022, gross charge-offs were $3.5 million, a decrease of $2.4 million, from $5.9 million for the same period in 2021 and gross recoveries were $2.4 million, an increase of $0.5 million, from $2.9 million for the nine months ended September 30, 2021. Net loan charge-offs were $1.1 million, or 0.03 percent of average loans, compared with net loan charge-offs of $3.0 million, or 0.09 percent of average loans, for the nine months ended September 30, 2022 and 2021, respectively.

Deposits

The following table shows the composition of deposits by type as of the dates indicated:

	September 30, 2022					December 31, 2021
	Balance		Percent			Balance		Percent
	(dollars in thousands)
Demand – noninterest-bearing	$	2,771,498		44.7	%	$	2,574,517		44.5	%
Interest-bearing:
Demand		125,408		2.0	%		125,183		2.2	%
Money market and savings		2,056,793		33.2	%		2,099,381		36.3	%
Uninsured time deposits of more than $250,000:
Three months or less		36,268		0.6	%		69,464		1.2	%
Over three months through six months		73,576		1.2	%		73,808		1.3	%
Over six months through twelve months		128,953		2.1	%		29,706		0.5	%
Over twelve months		19,266		0.3	%		549		0.0	%
Other time deposits		989,614		16.0	%		813,661		14.1	%
Total deposits	$	6,201,376		100.0	%	$	5,786,269		100.0	%

Total deposits were $6.20 billion and $5.79 billion as of September 30, 2022 and December 31, 2021, respectively, representing an increase of $415.1 million, or 7.2 percent.

The increase in deposits was primarily driven by increases in noninterest-bearing demand deposits and time deposits. At September 30, 2022, the loan-to-deposit ratio was 93.5 percent compared with 89.0 percent at December 31, 2021. The increase in noninterest-bearing deposits reflects growth from new and existing customer relationships while additional marketing efforts increased time deposits.

As of September 30, 2022, the aggregate amount of uninsured deposits (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) was $2.87 billion, of which $2.61 billion were demand, money market and savings deposits and $258.1 million were time deposits. As of December 31, 2021, the aggregate amount of uninsured deposits was $2.63 billion, consisting of $2.46 billion in demand, money market and savings deposits and $173.5 million in time deposits.

Borrowings and Subordinated Debentures

Borrowings mostly take the form of advances from the FHLB. At September 30, 2022 and December 31, 2021, total advances from the FHLB were $100.0 million and $137.5 million, respectively. The Bank had no overnight advances from the FHLB at September 30, 2022 or December 31, 2021.

The weighted-average interest rate of all FHLB advances at September 30, 2022 and December 31, 2021 was 0.87 percent and 1.05 percent, respectively.

The FHLB maximum amount outstanding at any month end during the year to date periods ended September 30, 2022 and December 31, 2021 were $215.0 million and $162.5 million, respectively.

55

The following is a summary of contractual maturities greater than twelve months of FHLB advances:

	September 30, 2022					December 31, 2021
FHLB of San Francisco	Outstanding Balance		Weighted Average Rate			Outstanding Balance		Weighted Average Rate
	(dollars in thousands)
Advances due over 12 months through 24 months	$	37,500		0.40	%	$	50,000		0.97	%
Advances due over 24 months through 36 months		12,500		1.90	%		37,500		0.40	%
Outstanding advances over 12 months	$	50,000		0.78	%	$	87,500		0.73	%

Subordinated debentures were $129.3 million as of September 30, 2022 and $215.0 million as of December 31, 2021. The $86.0 million decrease in subordinated debentures was primarily due to the $100.0 million redemption of the 2027 Notes on March 30, 2022. Subordinated debentures are comprised of fixed-to-floating subordinated notes of $108.1 million and $194.2 million as of September 30, 2022 and December 31, 2021, respectively, and junior subordinated deferrable interest debentures of $21.1 million and $20.8 million as of September 30, 2022 and December 31, 2021, respectively. See “Note 8 – Borrowings and Subordinated Debentures” to the consolidated financial statements for more details.

Interest Rate Risk Management

The spread between interest income on interest-earning assets and interest expense on interest-bearing liabilities is the principal component of net interest income, and interest rate changes substantially affect our financial performance. We emphasize capital protection through stable earnings. In order to achieve stable earnings, we prudently manage our assets and liabilities and closely monitor the percentage changes in net interest income and equity value in relation to limits established within our guidelines.

The Company performs simulation modeling to estimate the potential effects of interest rate changes. The following table summarizes one of the stress simulations performed to forecast the impact of changing interest rates on net interest income and the value of interest-earning assets and interest-bearing liabilities reflected on our balance sheet (i.e., an instantaneous parallel shift in the yield curve of the magnitude indicated below) as of September 30, 2022. The Company compares this stress simulation to policy limits, which specify the maximum tolerance level for net interest income exposure over a 1- to 12-month and a 13- to 24- month horizon, given the basis point adjustment in interest rates reflected below.

	Net Interest Income Simulation
Change in	1- to 12-Month Horizon						13- to 24-Month Horizon
Interest	Dollar			Percentage			Dollar			Percentage
Rate	Change			Change			Change			Change
	(dollars in thousands)
300%	$	23,209			8.54	%	$	33,155			11.62	%
200%	$	15,254			5.61	%	$	21,434			7.51	%
100%	$	8,505			3.13	%	$	12,852			4.50	%
(100%)	$	(11,243	)		(4.14	%)	$	(19,146	)		(6.71	%)
(200%)	$	(28,189	)		(10.38	%)	$	(48,641	)		(17.05	%)

Change in	Economic Value of Equity (EVE)
Interest	Dollar			Percentage
Rate	Change			Change
	(dollars in thousands)
300%	$	52,228			5.20	%
200%	$	41,172			4.10	%
100%	$	32,046			3.19	%
(100%)	$	(53,407	)		(5.32	%)
(200%)	$	(147,575	)		(14.70	%)

The estimated sensitivity does not necessarily represent our forecast, and the results may not be indicative of actual changes to our net interest income. These estimates are based upon a number of assumptions, including the timing and magnitude of interest rate changes, prepayments on loans receivable and securities, pricing strategies on loans receivable and deposits, and replacement of asset and liability cash flows.

56

The key assumptions, based upon loans receivable, securities and deposits, are as follows:

Conditional prepayment rates*:
Loans receivable	16	%
Securities	8	%
Deposit rate betas*:
NOW, savings, money market demand	47	%
Time deposits, retail and wholesale	78	%
* Balance-weighted average

While the assumptions used are based on current economic and local market conditions, there is no assurance as to the predictive nature of these conditions, including how customer preferences or competitor influences might change.

Capital Resources and Liquidity

Capital Resources

Historically, our primary source of capital has been the retention of operating earnings. In order to ensure adequate capital levels, the Board regularly assesses projected sources and uses of capital, expected loan growth, anticipated strategic actions (such as stock repurchases and dividends), and projected capital thresholds under adverse and severely adverse economic conditions. In addition, the Board considers the Company’s access to capital from financial markets through the issuance of additional debt and securities, including common stock or notes, to meet its capital needs.

In response to the uncertainty surrounding the COVID-19 pandemic, the Board reduced the quarterly cash dividends paid on common stock beginning in the second quarter of 2020. Due to the continued stabilization of Company results and financial condition, the Board authorized an increase in the quarterly cash dividend to $0.12 per share for the second quarter of 2021 from $0.10 per share for the first quarter of 2021. As the effects of the pandemic continued to subside and the Company’s results and financial condition improved, the Board again increased the dividend to $0.20 per share for the fourth quarter of 2021, to $0.22 per share for the first and second quarters of 2022 and to $0.25 per share for the third quarter of 2022. The Board will continue to re-evaluate the level of quarterly dividends in subsequent quarters.

The Company’s ability to pay dividends to shareholders depends in part upon dividends it receives from the Bank. California law restricts the amount available for cash dividends to the lesser of a bank’s retained earnings or net income for its last three fiscal years (less any distributions to shareholders made during such period). Where the above test is not met, cash dividends may still be paid, with the prior approval of the Department of Financial Protection and Innovation (“DFPI”), in an amount not exceeding the greater of: (1) retained earnings of the bank; (2) net income of the bank for its last fiscal year; or (3) the net income of the bank for its current fiscal year. As of October 1, 2022, the Bank has the ability to pay dividends of approximately $63.5 million, after giving effect to the $0.25 dividend declared for the fourth quarter of 2022, without the prior approval of the Commissioner of the DFPI.

At September 30, 2022, the Bank’s total risk-based capital ratio of 13.76 percent, Tier 1 risk-based capital ratio of 12.73 percent, common equity Tier 1 capital ratio of 12.73 percent and Tier 1 leverage capital ratio of 11.02 percent, placed the Bank in the “well capitalized” category pursuant to capital rules, which is defined as institutions with total risk-based capital ratio equal to or greater than 10.00 percent, Tier 1 risk-based capital ratio equal to or greater than 8.00 percent, common equity Tier 1 capital ratios equal to or greater than 6.50 percent, and Tier 1 leverage capital ratio equal to or greater than 5.00 percent.

At September 30, 2022, the Company's total risk-based capital ratio was 14.38 percent, Tier 1 risk-based capital ratio was 11.55 percent, common equity Tier 1 capital ratio was 11.21 percent and Tier 1 leverage capital ratio was 9.99 percent.

For a discussion of implemented changes to the capital adequacy framework prompted by Basel III and the Dodd- Frank Wall Street Reform and Consumer Protection Act, see our 2021 Annual Report on Form 10-K.

57

Liquidity

For a discussion of liquidity for the Company, see Note 14 - Liquidity included in the notes to unaudited consolidated financial statements in this Report and Note 22 – Liquidity in our 2021 Annual Report on Form 10-K.

Off-Balance Sheet Arrangements

For a discussion of off-balance sheet arrangements, see Note 12 - Off-Balance Sheet Commitments included in the notes to unaudited consolidated financial statements in this Report and “Item 1. Business - Off-Balance Sheet Commitments” in our 2021 Annual Report on Form 10-K.

Contractual Obligations

There have been no material changes to the contractual obligations described in our 2021 Annual Report on Form 10-K.

Recently Issued Accounting Standards

FASB ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, On March 12, 2020, the FASB issued ASU 2020-04 to ease the potential burden in accounting for reference rate reform. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform.

The new guidance provided several optional expedients that reduce costs and complexity of accounting for reference rate reform, including measures to simplify or modify accounting issues resulting from reference rate reform for contract modifications, hedges, and debt securities.

The amendments are effective for all entities from the beginning of an interim period that includes the issuance date of ASU 2020-04. An entity may elect to apply the amendments prospectively through December 31, 2022.

The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition.

FASB ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures (Topic 326): The FASB amended the accounting and disclosure requirements for expected credit losses by removing the recognition and measurement guidance on TDRs and enhancing disclosures pertaining to certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. Additionally, this standard requires disclosure of current-period gross write-offs by year of origination for financing receivables.

The standard becomes effective for the Company for the interim and annual periods beginning on January 1, 2023. Early adoption is permitted.

The Company is in the process of evaluating the standard and its effect on the Company’s financial condition, results of operations, cash flows, and financial statement disclosures.

58

Item 3. Quantitative and Qualitative Disclosures about Market Risk

For quantitative and qualitative disclosures regarding market risks in Hanmi Bank’s portfolio, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk Management” and “- Capital Resources” in this Report.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Management is responsible for the disclosure controls and procedures of the Corporation. Disclosure controls and procedures are controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods required by the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of the Corporation’s management, including the Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), of the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures. Based on that evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of September 30, 2022.

Changes in Internal Control over Financial Reporting

There were no changes in the Corporation's internal control over financial reporting (as defined in Rule 13a-15(f)) during the quarter ended September 30, 2022 that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

59

Part II — Other Information

Item 1. Legal Proceedings

From time to time, Hanmi Financial and its subsidiaries are parties to litigation that arises in the ordinary course of business, such as claims to enforce liens, claims involving the origination and servicing of loans, and other issues related to the business of Hanmi Financial and its subsidiaries. In the opinion of management, the resolution of any such issues would not have a material adverse impact on the financial condition, results of operations, or liquidity of Hanmi Financial or its subsidiaries.

Item 1A. Risk Factors

There have been no material changes in risk factors applicable to the Corporation from those described in “Risk Factors” in Part I, Item 1A of the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On January 24, 2019, the Company announced a stock repurchase program that authorized the repurchase of up to 5 percent of its outstanding shares or approximately 1.5 million shares of common stock. As of September 30, 2022, 659,972 shares remained available for future purchases under that stock repurchase program. The Company acquired 26,441 shares from employees in connection with the satisfaction of employee tax withholding obligations incurred through vesting of Company stock awards for the nine months ended September 30, 2022. Shares withheld to cover income taxes upon the vesting of stock awards are repurchased pursuant to the terms of the applicable plan and not under the Company's repurchase program.

The following table represents information with respect to repurchases of common stock made by the Company during the three months ended September 30, 2022:

Purchase Date:	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Maximum Shares That May Yet Be Purchased Under the Program
July 1, 2022 - July 31, 2022	$	—		—		659,972
August 1, 2022 - August 31, 2022	$	—		—		659,972
September 1, 2022 - September 30, 2022	$	—		—		659,972
Total	$	—		—		659,972

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

60

Item 6. Exhibits

Exhibit Number	Document
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document *
101.SCH	Inline XBRL Taxonomy Extension Schema Document *
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document *
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document *
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document *
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document *
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline XBRL

* Attached as Exhibit 101 to this report are documents formatted in Inline XBRL (Extensible Business Reporting Language).

† Constitutes a management contract or compensatory plan or arrangement.

61

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

		Hanmi Financial Corporation
Date:	November 9, 2022	By:	/s/ Bonita I. Lee
			Bonita I. Lee
			President and Chief Executive Officer (Principal Executive Officer)

Date:	November 9, 2022	By:	/s/ Romolo C. Santarosa
			Romolo C. Santarosa
			Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)

62

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Bonita I. Lee, President and Chief Executive Officer, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Hanmi Financial Corporation;

2.Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3.Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4.The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

(d)disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the Audit Committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date:	November 9, 2022	/s/ Bonita I. Lee
		Bonita I. Lee
		President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Romolo C. Santarosa, Senior Executive Vice President and Chief Financial Officer, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Hanmi Financial Corporation;

2.Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3.Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4.The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

(d)disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the Audit Committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date:	November 9, 2022	/s/ Romolo C. Santarosa
		Romolo C. Santarosa
		Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To

Section 906 of The Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Hanmi Financial Corporation (the “Company”) on Form 10-Q for the period ended September 30, 2022, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), I, Bonita I. Lee, President and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge that:

(1)The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the period presented.

Date:	November 9, 2022	/s/ Bonita I. Lee
		Bonita I. Lee
		President and Chief Executive Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure statement. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

EX-32.2

Exhibit 32.2

Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To

Section 906 of The Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Hanmi Financial Corporation (the “Company”) on Form 10-Q for the period ended September 30, 2022, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), I, Romolo C. Santarosa, Senior Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge that:

(1)The Report fully complies with the requirements of Section13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the periods presented.

Date:	November 9, 2022	/s/ Romolo C. Santarosa
		Romolo C. Santarosa
		Senior Executive Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure statement. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

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Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Nov. 02, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Trading Symbol	HAFC
Entity Registrant Name	HANMI FINANCIAL CORPORATION
Entity Central Index Key	0001109242
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		30,486,115
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	000-30421
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4788120
Entity Address, Address Line One	900 Wilshire Boulevard
Entity Address, Address Line Two	Suite 1250
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90017
City Area Code	213
Local Phone Number	382-2200
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, $0.001 par value
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets
Cash and due from banks	$ 275,159	$ 608,965
Securities available for sale, at fair value (amortized cost of $967,383 and $922,654 as of September 30, 2022 and December 31, 2021, respectively)	830,151	910,790
Loans held for sale, at the lower of cost or fair value	10,044	13,342
Loans receivable, net of allowance for credit losses of $71,584 and $72,557 as of September 30, 2022 and December 31, 2021, respectively	5,729,407	5,078,984
Accrued interest receivable	15,356	11,976
Premises and equipment, net	23,591	24,788
Customers' liability on acceptances	200
Servicing assets	7,424	7,080
Goodwill and other intangible assets, net	11,267	11,395
Federal Home Loan Bank ("FHLB") stock, at cost	16,385	16,385
Income tax assets	66,217	44,060
Bank-owned life insurance	55,641	54,905
Prepaid expenses and other assets	87,669	75,917
Total assets	7,128,511	6,858,587
Deposits:
Noninterest-bearing	2,771,498	2,574,517
Interest-bearing	3,429,878	3,211,752
Total deposits	6,201,376	5,786,269
Accrued interest payable	2,180	1,161
Bank's liability on acceptances	200
Borrowings	100,000	137,500
Subordinated debentures ($136,800 and $224,100 face amount less unamortized discount and debt issuance costs of $7,539 and $9,094 as of September 30, 2022 and December 31, 2021, respectively)	129,261	215,006
Accrued expenses and other liabilities	86,601	75,234
Total liabilities	6,519,618	6,215,170
Stockholders' equity:
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of September 30, 2022 and December 31, 2021
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 33,705,973 shares (30,484,004 shares outstanding) and 33,603,839 shares (30,407,261 shares outstanding) as of September 30, 2022 and December 31, 2021, respectively	33	33
Additional paid-in capital	582,695	580,796
Accumulated other comprehensive income (loss), net of tax benefit of $41,170 and $3,421 as of September 30, 2022 and December 31, 2021, respectively	(96,062)	(8,443)
Retained earnings	248,684	196,784
Less treasury stock; 3,221,969 shares and 3,196,578 shares as of September 30, 2022 and December 31, 2021, respectively	(126,457)	(125,753)
Total stockholders' equity	608,893	643,417
Total liabilities and stockholders' equity	$ 7,128,511	$ 6,858,587

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Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Amortized cost of securities available for sale	$ 967,383	$ 922,654
Loans receivable, allowance for credit losses	71,584	72,557
Face amount of subordinated debentures	136,800	224,100
Unamortized discount and debt issuance costs	$ 7,539	$ 9,094
Preferred stock par value (in USD per share)	$ 0.001	$ 0.001
Preferred stock authorized (shares)	10,000,000	10,000,000
Preferred stock issued (shares)	0	0
Common stock par value (in USD per share)	$ 0.001	$ 0.001
Common stock authorized (shares)	62,500,000	62,500,000
Common stock issued (shares)	33,705,973	33,603,839
Common stock outstanding (shares)	30,484,004	30,407,261
Accumulated other comprehensive (loss) income, tax benefit	$ 41,170	$ 3,421
Treasury stock (shares)	3,221,969	3,196,578

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Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest and dividend income:
Interest and fees on loans receivable	$ 66,976,000	$ 52,961,000	$ 180,755,000	$ 156,361,000
Interest on securities	3,271,000	1,865,000	8,718,000	4,409,000
Dividends on FHLB stock	245,000	245,000	735,000	693,000
Interest on deposits in other banks	958,000	329,000	1,366,000	601,000
Total interest and dividend income	71,450,000	55,400,000	191,574,000	162,064,000
Interest expense:
Interest on deposits	6,567,000	2,466,000	11,038,000	9,419,000
Interest on borrowings	349,000	409,000	1,056,000	1,332,000
Interest on subordinated debentures	1,448,000	2,545,000	6,394,000	5,759,000
Total interest expense	8,364,000	5,420,000	18,488,000	16,510,000
Net interest income before credit loss expense	63,086,000	49,980,000	173,086,000	145,554,000
Credit loss expense (recovery)	563,000	(7,234,000)	783,000	(8,452,000)
Net interest income after credit loss expense (recovery)	62,523,000	57,214,000	172,303,000	154,006,000
Noninterest income:
Service charges on deposit accounts	2,996,000	3,437,000	8,745,000	8,036,000
Trade finance and other service charges and fees	1,132,000	1,188,000	3,690,000	3,468,000
Gain on sale of Small Business Administration ("SBA") loans	2,250,000	5,842,000	7,545,000	13,475,000
Net gain on sales of securities				99,000
Other operating income	2,536,000	2,042,000	6,763,000	6,123,000
Total noninterest income	8,914,000	12,509,000	26,743,000	31,201,000
Noninterest expense:
Salaries and employee benefits	19,365,000	18,795,000	55,861,000	53,917,000
Occupancy and equipment	4,736,000	5,037,000	13,979,000	14,235,000
Data processing	3,352,000	2,934,000	9,702,000	8,775,000
Professional fees	1,249,000	1,263,000	3,909,000	4,123,000
Supplies and communications	710,000	741,000	1,956,000	2,231,000
Advertising and promotion	1,186,000	953,000	2,664,000	1,685,000
Other operating expenses	2,677,000	2,779,000	8,370,000	7,852,000
Total noninterest expense	33,275,000	32,502,000	96,441,000	92,818,000
Income before tax	38,162,000	37,221,000	102,605,000	92,389,000
Income tax expense	10,993,000	10,656,000	29,690,000	27,042,000
Net income	$ 27,169,000	$ 26,565,000	$ 72,915,000	$ 65,346,000
Basic earnings per share	$ 0.89	$ 0.87	$ 2.39	$ 2.13
Diluted earnings per share	$ 0.89	$ 0.86	$ 2.39	$ 2.13
Weighted-average shares outstanding:
Basic	30,314,439	30,474,391	30,289,068	30,222,978
Diluted	30,396,762	30,552,196	30,369,538	30,298,553

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Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 27,169	$ 26,565	$ 72,915	$ 65,346
Unrealized gain on securities:
Unrealized holding (loss) gain arising during period	(42,135)	(3,568)	(125,368)	(11,877)
Less: reclassification adjustment for net gain included in net income				(99)
Income tax benefit (expense) related to items of other comprehensive income	12,641	1,070	37,749	3,543
Other comprehensive income (loss), net of tax	(29,494)	(2,498)	(87,619)	(8,433)
Comprehensive income (loss)	$ (2,325)	$ 24,067	$ (14,704)	$ 56,913

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock - Number of Shares, Shares Issued	Common Stock - Number of Shares, Treasury Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Balance at beginning of period at Dec. 31, 2020	$ 577,044	$ 33	$ (119,046)	$ 578,360	$ 3,076	$ 114,621
Beginning balance, shares issued (shares) at Dec. 31, 2020		33,560,801
Beginning balance, treasury stock (shares) at Dec. 31, 2020			(2,842,966)
Beginning balance, shares outstanding (shares) at Dec. 31, 2020		30,717,835
Restricted stock awards, net of forfeitures (shares)		56,325
Share-based compensation expense	1,899			1,899
Restricted stock surrendered due to employee tax liability	(531)		$ (531)
Restricted stock surrendered due to employee tax liability (shares)		(27,639)	(27,639)
Repurchase of common stock	(5,837)		$ (5,837)
Repurchase of common stock (shares)		(304,920)	(304,920)
Cash dividends declared (common stock, $0.12/share, $0.0/share)	(10,433)					(10,433)
Net income	65,346					65,346
Change in unrealized gain (loss) on securities available for sale, net of income taxes	(8,433)				(8,433)
Balance at end of period at Sep. 30, 2021	619,055	$ 33	$ (125,414)	580,259	(5,357)	169,534
Ending balance, shares issued (shares) at Sep. 30, 2021		33,617,126
Ending balance, treasury stock (shares) at Sep. 30, 2021			(3,175,525)
Ending balance, shares outstanding (shares) at Sep. 30, 2021		30,441,601
Balance at beginning of period at Jun. 30, 2021	602,977	$ 33	$ (120,443)	579,595	(2,859)	146,651
Beginning balance, shares issued (shares) at Jun. 30, 2021		33,617,311
Beginning balance, treasury stock (shares) at Jun. 30, 2021			(2,919,659)
Beginning balance, shares outstanding (shares) at Jun. 30, 2021		30,697,652
Restricted stock awards, net of forfeitures (shares)		185
Share-based compensation expense	664			664
Restricted stock surrendered due to employee tax liability	(80)		$ (80)
Restricted stock surrendered due to employee tax liability (shares)		(5,946)	(5,946)
Repurchase of common stock	(4,891)		$ (4,891)
Repurchase of common stock (shares)		249,920	249,920
Cash dividends declared (common stock, $0.12/share, $0.0/share)	(3,682)					(3,682)
Net income	26,565					26,565
Change in unrealized gain (loss) on securities available for sale, net of income taxes	(2,498)				(2,498)
Balance at end of period at Sep. 30, 2021	619,055	$ 33	$ (125,414)	580,259	(5,357)	169,534
Ending balance, shares issued (shares) at Sep. 30, 2021		33,617,126
Ending balance, treasury stock (shares) at Sep. 30, 2021			(3,175,525)
Ending balance, shares outstanding (shares) at Sep. 30, 2021		30,441,601
Balance at beginning of period at Dec. 31, 2021	$ 643,417	$ 33	$ (125,753)	580,796	(8,443)	196,784
Beginning balance, shares issued (shares) at Dec. 31, 2021		33,603,839
Beginning balance, treasury stock (shares) at Dec. 31, 2021	(3,196,578)		(3,196,578)
Beginning balance, shares outstanding (shares) at Dec. 31, 2021		30,407,261
Stock options exercised	$ 13			13
Stock options exercised (shares)		1,050	1,050
Restricted stock awards, net of forfeitures (shares)		102,134
Share-based compensation expense	1,886			1,886
Restricted stock surrendered due to employee tax liability	(704)		$ (704)
Restricted stock surrendered due to employee tax liability (shares)		(26,441)	(26,441)
Cash dividends declared (common stock, $0.12/share, $0.0/share)	(21,015)					(21,015)
Net income	72,915					72,915
Change in unrealized gain (loss) on securities available for sale, net of income taxes	(87,619)				(87,619)
Balance at end of period at Sep. 30, 2022	$ 608,893	$ 33	$ (126,457)	582,695	(96,062)	248,684
Ending balance, shares issued (shares) at Sep. 30, 2022		33,705,973
Ending balance, treasury stock (shares) at Sep. 30, 2022	(3,221,969)		3,221,969
Ending balance, shares outstanding (shares) at Sep. 30, 2022		30,484,004
Balance at beginning of period at Jun. 30, 2022	$ 618,296	$ 33	$ (126,322)	582,018	(66,568)	229,135
Beginning balance, shares issued (shares) at Jun. 30, 2022		33,701,784
Beginning balance, treasury stock (shares) at Jun. 30, 2022			(3,218,794)
Beginning balance, shares outstanding (shares) at Jun. 30, 2022		30,482,990
Stock options exercised	13			13
Stock options exercised (shares)		1,050	1,050
Restricted stock awards, net of forfeitures (shares)		4,189
Share-based compensation expense	664			664
Restricted stock surrendered due to employee tax liability	(135)		$ (135)
Restricted stock surrendered due to employee tax liability (shares)		(4,225)	(4,225)
Cash dividends declared (common stock, $0.12/share, $0.0/share)	(7,620)					(7,620)
Net income	27,169					27,169
Change in unrealized gain (loss) on securities available for sale, net of income taxes	(29,494)				(29,494)
Balance at end of period at Sep. 30, 2022	$ 608,893	$ 33	$ (126,457)	$ 582,695	$ (96,062)	$ 248,684
Ending balance, shares issued (shares) at Sep. 30, 2022		33,705,973
Ending balance, treasury stock (shares) at Sep. 30, 2022	(3,221,969)		3,221,969
Ending balance, shares outstanding (shares) at Sep. 30, 2022		30,484,004

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement Of Stockholders Equity [Abstract]
Common stock (in usd per share)	$ 0.25	$ 0.12	$ 0.69	$ 0.34

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 72,915	$ 65,346
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,463	12,186
Share-based compensation expense	1,886	1,899
Credit loss expense (recovery)	783	(8,452)
Gain on sales of securities		(99)
Gain on sales of SBA loans	(7,545)	(13,475)
Origination of SBA loans held for sale	(111,915)	(233,642)
Proceeds from sales of SBA loans	122,744	233,711
Change in bank-owned life insurance	(736)	(759)
Change in prepaid expenses and other assets	(21,443)	5,531
Change in income tax assets	15,592	3,407
Change in accrued expenses and other liabilities	15,646	(188)
Net cash provided by (used in) operating activities	100,390	65,465
Cash flows from investing activities:
Purchases of securities available for sale	(132,966)	(402,259)
Proceeds from matured, called and repayment of securities	84,669	223,129
Proceeds from sales of securities available for sale		8,035
Purchases of loans receivable	(11,130)	(1,500)
Purchases of premises and equipment	(1,750)	(2,450)
Proceeds from disposition of premises and equipment		45
Proceeds from sales of other real estate owned ("OREO")		1,479
Change in loans receivable, excluding purchases	(641,619)	20,415
Net cash provided by (used in) investing activities	(702,796)	(153,106)
Cash flows from financing activities:
Change in deposits	415,107	454,528
Proceeds from borrowings	399,819	45,750
Repayment of borrowings	(437,320)	(58,250)
Proceeds from redeemed subordinated debentures	12,700
Issuance of subordinated debentures		107,956
Redemption of subordinated debentures	(100,000)	(13,043)
Proceeds from exercise of stock options	13
Cash paid for surrender of vested shares due to employee tax liability	(704)	(531)
Repurchase of common stock		(5,837)
Cash dividends paid	(21,015)	(10,433)
Net cash provided by (used in) financing activities	268,600	520,140
Net increase (decrease) in cash and due from banks	(333,806)	432,498
Cash and due from banks at beginning of year	608,965	391,849
Cash and due from banks at end of period	275,159	824,347
Supplemental disclosures of cash flow information:
Interest paid	17,469	19,839
Income taxes paid	12,725	22,265
Non-cash activities:
Transfer of loans receivable to other real estate owned	117
Income tax benefit related to items of other comprehensive income	37,749	3,543
Change in right-of-use asset obtained in exchange for lease liability	$ 108	$ 2,905

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Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation

Note 1 — Organization and Basis of Presentation

Hanmi Financial Corporation (“Hanmi Financial,” the “Company,” “we,” “us” or “our”) is a bank holding company whose primary subsidiary is Hanmi Bank (the “Bank”). Our primary operations are related to traditional banking activities, including the acceptance of deposits and the lending and investing of money by the Bank.

In management’s opinion, the accompanying unaudited consolidated financial statements of Hanmi Financial and its subsidiaries reflect all adjustments of a normal and recurring nature that are necessary for a fair presentation of the results for the interim periods ended September 30, 2022, but are not necessarily indicative of the results that will be reported for the entire year or any other interim period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. The unaudited consolidated financial statements are prepared in conformity with GAAP and in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. The interim information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report on Form 10-K”).

The preparation of interim unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited financial statements and disclosures provided, and actual results could differ.

The extent to which the COVID-19 pandemic may impact business activity or financial results will depend on future developments, including new variants that may emerge and the actions required to contain the coronavirus or treat its impact, among others, which are highly uncertain and cannot be predicted. This uncertainty may impact the accuracy of our significant estimates, which includes the allowance for credit losses, the allowance for credit losses related to off-balance sheet items, and the valuation of intangible assets, including deferred tax assets, goodwill, and servicing assets.

Descriptions of our significant accounting policies are included in Note 1 - Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in the 2021 Annual Report on Form 10-K.

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Securities

9 Months Ended

Sep. 30, 2022

Investments Debt And Equity Securities [Abstract]

Securities

Note 2 — Securities

The following is a summary of securities available for sale as of the dates indicated:

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
	(in thousands)
September 30, 2022
U.S. Treasury securities	$	34,876	$	—	$	(1,716	)	$	33,160
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		615,335		—		(92,965	)		522,370
Collateralized mortgage obligations		98,872		—		(12,466	)		86,406
Debt securities		139,904		—		(12,270	)		127,634
Total U.S. government agency and sponsored agency obligations		854,111		—		(117,701	)		736,410
Municipal bonds-tax exempt		78,396		—		(17,815	)		60,581
Total securities available for sale	$	967,383	$	—	$	(137,232	)	$	830,151
December 31, 2021
U.S. Treasury securities	$	15,457	$	1	$	(61	)	$	15,397
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		615,393		18		(7,906	)		607,505
Collateralized mortgage obligations		95,153		41		(1,590	)		93,604
Debt securities		117,499		—		(1,603	)		115,896
Total U.S. government agency and sponsored agency obligations		828,045		59		(11,099	)		817,005
Municipal bonds-tax exempt		79,152		117		(881	)		78,388
Total securities available for sale	$	922,654	$	177	$	(12,041	)	$	910,790

The amortized cost and estimated fair value of securities as of September 30, 2022 and December 31, 2021, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities.

	September 30, 2022				December 31, 2021
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	14,984	$	14,649	$	1,103	$	1,108
Over one year through five years		169,164		155,085		126,483		125,069
Over five years through ten years		36,905		32,703		51,338		50,770
Over ten years		746,330		627,714		743,730		733,843
Total	$	967,383	$	830,151	$	922,654	$	910,790

The following table summarizes debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded at September 30, 2022 and December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position:

	Holding Period
	Less than 12 Months							12 Months or More							Total
	Gross			Estimated		Number		Gross			Estimated		Number		Gross			Estimated		Number
	Unrealized			Fair		of		Unrealized			Fair		of		Unrealized			Fair		of
	Loss			Value		Securities		Loss			Value		Securities		Loss			Value		Securities
	(in thousands, except number of securities)
September 30, 2022
U.S. Treasury securities	$	(1,145	)	$	28,773		12	$	(571	)	$	4,387		1	$	(1,716	)	$	33,160		13
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		(14,222	)		104,500		33		(78,743	)		417,870		105		(92,965	)		522,370		138
Collateralized mortgage obligations		(1,526	)		25,479		10		(10,940	)		60,927		18		(12,466	)		86,406		28
Debt securities		(2,390	)		38,488		9		(9,880	)		89,146		18		(12,270	)		127,634		27
Total U.S. government agency and sponsored agency obligations		(18,138	)		168,467		52		(99,563	)		567,943		141		(117,701	)		736,410		193
Municipal bonds-tax exempt		(2,735	)		10,906		3		(15,080	)		49,675		16		(17,815	)		60,581		19
Total	$	(22,018	)	$	208,146		67	$	(115,214	)	$	622,005		158	$	(137,232	)	$	830,151		225
December 31, 2021
U.S. Treasury securities	$	(61	)	$	8,391		2	$	—		$	—		—	$	(61	)	$	8,391		2
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		(6,252	)		535,610		102		(1,654	)		59,457		11		(7,906	)		595,067		113
Collateralized mortgage obligations		(1,256	)		76,894		16		(334	)		12,548		3		(1,590	)		89,442		19
Debt securities		(1,503	)		110,996		21		(100	)		4,900		1		(1,603	)		115,896		22
Total U.S. government agency and sponsored agency obligations		(9,011	)		723,500		139		(2,088	)		76,905		15		(11,099	)		800,405		154
Municipal bonds-tax exempt		(881	)		68,548		17		—			—		—		(881	)		68,548		17
Total	$	(9,953	)	$	800,439		158	$	(2,088	)	$	76,905		15	$	(12,041	)	$	877,344		173

The Company evaluates its available-for-sale securities portfolio for impairment on a quarterly basis. This assessment takes into account the changes in the credit quality of these debt securities since acquisition and the likelihood of a credit loss occurring over the life of the securities. In the event that a credit loss is expected to occur in the future, an allowance is established and a corresponding credit loss is recognized. Based on this analysis, as of September 30, 2022, the Company determined that no credit losses are expected to be realized on the tax-exempt municipal bond portfolio. The remainder of the portfolio consists of U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government, and are therefore not expected to incur credit losses.

Realized gains and losses on sales of securities and proceeds from sales of securities were as follows for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Gross realized gains on sales of securities	$	—	$	—	$	—	$	99
Gross realized losses on sales of securities		—		—		—		—
Net realized gains on sales of securities	$	—	$	—	$	—	$	99
Proceeds from sales of securities	$	—	$	—	$	—	$	8,035

There were no sales of securities during the three months ended September 30, 2022 or 2021.

During the nine months ended September 30, 2022, there were no sale of securities. During the nine months ended September 30, 2021, there were $0.1 million in net gains in earnings resulting from the sale of $8.0 million of securities previously recorded with $0.1 million unrealized gains in accumulated other comprehensive income.

Securities available for sale with market values of $24.5 million and $34.7 million as of September 30, 2022 and December 31, 2021, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.

At September 30, 2022, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies in an amount greater than 10 percent of shareholders’ equity.

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Loans

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Loans

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:

	September 30, 2022			December 31, 2021
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,044,287		$	970,134
Hospitality		662,438			717,692
Other (1)		2,044,878			1,919,033
Total commercial property loans		3,751,603			3,606,859
Construction		102,342			95,006
Residential (2)		649,589			400,546
Total real estate loans		4,503,534			4,102,411
Commercial and industrial loans (3)		732,033			561,831
Equipment financing agreements		565,424			487,299
Loans receivable		5,800,991			5,151,541
Allowance for credit losses		(71,584	)		(72,557	)
Loans receivable, net	$	5,729,407		$	5,078,984

(1)Includes mixed-use, multifamily, office, industrial, gas stations, faith-based facilities, medical and warehouse; all other property types represent less than one percent of total loans receivable.

(2)Includes $2.4 million and $3.9 million of home equity loans and lines, and $5.6 million and $6.0 of personal loans at September 30, 2022 and December 31, 2021, respectively.

(3)At September 30, 2022 and December 31, 2021, Paycheck Protection Program ("PPP") loans were $1.0 million and $3.0 million, respectively.

Accrued interest on loans was $13.2 million and $10.1 million at September 30, 2022 and December 31, 2021, respectively.

At September 30, 2022 and December 31, 2021, loans of $2.36 billion and $2.30 billion, respectively, were pledged to secure advances from the FHLB.

Loans Held for Sale

The following is the activity for loans held for sale for the three months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	10,976		$	7,552		$	18,528
Originations and transfers		23,013			12,198			35,211
Sales		(27,493	)		(16,192	)		(43,685	)
Principal paydowns and amortization		(6	)		(4	)		(10	)
Balance at end of period	$	6,490		$	3,554		$	10,044
September 30, 2021
Balance at beginning of period	$	13,092		$	22,938		$	36,030
Originations and transfers		28,537			15,228			43,765
Sales		(27,513	)		(34,956	)		(62,469	)
Principal paydowns and amortization		(4	)		559			555
Balance at end of period	$	14,112		$	3,769		$	17,881

Loans held for sale was comprised of $10.0 million and $13.3 million of the guaranteed portion of SBA 7(a) loans at September 30, 2022 and December 31, 2021, respectively. All second draw PPP loans were sold by the third quarter of 2021. For the three and nine months ended September 30, 2021, the Company recognized $0.3 million and $3.0 million, respectively, of gains on the sale of $14.6 million and $132.7 million, respectively, of second draw PPP loans.

The following is the activity for loans held for sale for the nine months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	6,954		$	6,388		$	13,342
Originations and transfers		72,708			39,207			111,915
Sales		(73,166	)		(42,033	)		(115,199	)
Principal payoffs and amortization		(6	)		(8	)		(14	)
Balance at end of period	$	6,490		$	3,554		$	10,044
September 30, 2021
Balance at beginning of period	$	8,042		$	526		$	8,568
Originations and transfers		71,005			162,637			233,642
Sales		(64,930	)		(160,293	)		(225,223	)
Principal payoffs and amortization		(5	)		899			894
Balance at end of period	$	14,112		$	3,769		$	17,881

Allowance for Credit Losses

The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	46,112		$	14,275		$	12,680		$	73,067
Less loans charged off		1,356			8			716			2,080
Recoveries on loans receivable previously charged off		(373	)		(228	)		(369	)		(970	)
Provision (recovery) for credit losses		395			381			(1,149	)		(373	)
Ending balance	$	45,524		$	14,876		$	11,184		$	71,584
September 30, 2021
Balance at beginning of period	$	63,029		$	8,059		$	12,284		$	83,372
Less loans charged off		—			186			791			977
Recoveries on loans receivable previously charged off		(1,162	)		(330	)		(350	)		(1,842	)
Provision (recovery) for credit losses		(8,128	)		507			(3	)		(7,624	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613

The following table details the information on the allowance for credit losses by portfolio segment as of and for the nine months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	48,890		$	12,418		$	11,249			72,557
Less loans charged off		1,886			87			1,548			3,521
Recoveries on loans receivable previously charged off		(632	)		(679	)		(1,117	)		(2,428	)
Provision (recovery) for credit losses		(2,112	)		1,866			366			120
Ending balance	$	45,524		$	14,876		$	11,184		$	71,584
September 30, 2021
Balance at beginning of period	$	51,876		$	21,410		$	17,140		$	90,426
Less loans charged off		1,491			550			3,893			5,934
Recoveries on loans receivable previously charged off		(1,597	)		(602	)		(694	)		(2,893	)
Provision (recovery) for credit losses		4,081			(12,752	)		(2,101	)		(10,772	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613

The table below illustrates the allowance for credit losses by loan portfolio segment and each loan portfolio segment as a percentage of total loans.

	September 30, 2022										December 31, 2021
	Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans			Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans
	(dollars in thousands)
Real estate loans:
Commercial property
Retail	$	7,758		10.8	%	$	1,044,287		18.0	%	$	6,579		9.1	%	$	970,134		18.8	%
Hospitality		15,417		21.5	%		662,438		11.4	%		22,670		31.2	%		717,692		13.9	%
Other		15,450		21.7	%		2,044,878		35.3	%		15,065		20.8	%		1,919,033		37.3	%
Total commercial property loans		38,625		54.0	%		3,751,603		64.7	%		44,314		61.1	%		3,606,859		70.0	%
Construction		4,034		5.6	%		102,342		1.8	%		4,078		5.6	%		95,006		1.8	%
Residential		2,865		4.0	%		649,589		11.2	%		498		0.7	%		400,546		7.8	%
Total real estate loans		45,524		63.6	%		4,503,534		77.7	%		48,890		67.4	%		4,102,411		79.6	%
Commercial and industrial loans		14,876		20.8	%		732,033		12.6	%		12,418		17.1	%		561,831		10.9	%
Equipment financing agreements		11,184		15.6	%		565,424		9.7	%		11,249		15.5	%		487,299		9.5	%
Total	$	71,584		100.0	%	$	5,800,991		100.0	%	$	72,557		100.0	%	$	5,151,541		100.0	%

The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2022 and December 31, 2021, for which repayment is expected to be obtained through the sale of the underlying collateral.

	September 30, 2022		December 31, 2021
	Amortized Cost		Amortized Cost
	(in thousands)
Real estate loans:
Commercial property
Retail	$	3,531	$	1,917
Hospitality		—		—
Other (1)		608		499
Total commercial property loans		4,139		2,416
Residential		912		982
Total real estate loans		5,051		3,398
Total	$	5,051	$	3,398

(1)Includes mixed-use, multifamily, office, industrial, gas stations, faith-based facilities, medical and warehouse; all other property types represent less than one percent of total loans receivable.

Loan Quality Indicators

As part of the on-going monitoring of the quality of our loans portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 0 to 8) for each loan in our portfolio. A third-party loan review is performed at least on an annual basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows:

Pass and Pass-Watch: Pass and Pass-Watch loans, grades (0-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention,” “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.

Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified.

Substandard: A Substandard loan, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected.

Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time.

Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner.

Under regulatory guidance, loans graded special mention or worse are considered criticized loans, and loans graded substandard or worse are considered classified loans.

Loans by Vintage Year and Risk Rating

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
September 30, 2022
Real estate loans:
Commercial property
Risk Rating							`
Pass / Pass-Watch	$	1,035,752	$	924,041	$	629,274	$	422,378	$	320,721	$	252,048	$	57,112	$	3,641,326
Special Mention		—		13,504		18,154		7,159		21,469		9,570		1,701		71,557
Classified		851		—		—		5,816		13,983		18,070		—		38,720
Total commercial property		1,036,603		937,545		647,428		435,353		356,173		279,688		58,813		3,751,603
Construction
Risk Rating
Pass / Pass-Watch		39,090		63,252		—		—		—		—		—		102,342
Special Mention		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—
Total construction		39,090		63,252		—		—		—		—		—		102,342
Residential
Risk Rating
Pass / Pass-Watch		310,794		176,295		13,146		236		737		140,285		6,476		647,969
Special Mention		—		—		343		—		—		—		350		693
Classified		15		—		—		—		—		912		—		927
Total residential		310,809		176,295		13,489		236		737		141,197		6,826		649,589
Total real estate loans
Risk Rating
Pass / Pass-Watch		1,385,636		1,163,588		642,420		422,614		321,458		392,333		63,588		4,391,637
Special Mention		—		13,504		18,497		7,159		21,469		9,570		2,051		72,250
Classified		866		—		—		5,816		13,983		18,982		—		39,647
Total real estate loans		1,386,502		1,177,092		660,917		435,589		356,910		420,885		65,639		4,503,534
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		283,314		110,850		45,219		29,583		11,656		13,864		184,223		678,709
Special Mention		—		9,609		—		13,514		—		107		27,472		50,702
Classified		—		35		171		1,183		97		495		641		2,622
Total commercial and industrial loans		283,314		120,494		45,390		44,280		11,753		14,466		212,336		732,033
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		233,883		183,731		53,553		62,107		23,802		2,878		—		559,954
Special Mention		—		—		—		—		—		—		—		—
Classified		108		1,568		265		2,582		814		133		—		5,470
Total equipment financing agreements		233,991		185,299		53,818		64,689		24,616		3,011		—		565,424
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,902,833		1,458,169		741,192		514,304		356,916		409,075		247,811		5,630,300
Special Mention		—		23,113		18,497		20,673		21,469		9,677		29,523		122,952
Classified		974		1,603		436		9,581		14,894		19,610		641		47,739
Total loans receivable	$	1,903,807	$	1,482,885	$	760,125	$	544,558	$	393,279	$	438,362	$	277,975	$	5,800,991

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis			Total
December 31, 2021
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	1,203,197	$	706,470	$	488,250	$	406,288	$	277,680	$	384,064	$	41,413		$	3,507,362
Special Mention		—		18,869		7,593		—		6,999		16,879		1,703			52,043
Classified		—		—		5,450		17,247		2,965		21,792		—			47,454
Total commercial property		1,203,197		725,339		501,293		423,535		287,644		422,735		43,116			3,606,859
Construction
Risk Rating
Pass / Pass-Watch		73,808		631		—		—		—		—		—			74,439
Special Mention		—		—		—		—		—		20,567		—			20,567
Classified		—		—		—		—		—		—		—			—
Total construction		73,808		631		—		—		—		20,567		—			95,006
Residential
Risk Rating
Pass / Pass-Watch		194,948		16,975		247		19,813		73,567		82,076		8,381			396,007
Special Mention		—		—		—		930		406		2,221		—			3,557
Classified		—		—		—		—		965		17		—			982
Total residential		194,948		16,975		247		20,743		74,938		84,314		8,381			400,546
Total real estate loans
Risk Rating
Pass / Pass-Watch		1,471,953		724,076		488,497		426,101		351,247		466,140		49,794			3,977,808
Special Mention		—		18,869		7,593		930		7,405		39,667		1,703			76,167
Classified		—		—		5,450		17,247		3,930		21,809		—			48,436
Total real estate loans		1,471,953		742,945		501,540		444,278		362,582		527,616		51,497			4,102,411
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		264,762		55,135		36,937		15,780		10,874		6,016		148,148			537,652
Special Mention		—		274		13,989		—		67		4,802		(5	)		19,127
Classified		—		3		708		145		19		886		3,291			5,052
Total commercial and industrial loans		264,762		55,412		51,634		15,925		10,960		11,704		151,434			561,831
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		239,738		79,400		101,460		47,485		10,683		1,388		—			480,154
Special Mention		—		—		—		—		—		—		—			—
Classified		716		981		3,575		1,328		347		198		—			7,145
Total equipment financing agreements		240,454		80,381		105,035		48,813		11,030		1,586		—			487,299
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,976,453		858,611		626,894		489,366		372,804		473,544		197,942			4,995,614
Special Mention		—		19,143		21,582		930		7,472		44,469		1,698			95,294
Classified		716		984		9,733		18,720		4,296		22,893		3,291			60,633
Total loans receivable	$	1,977,169	$	878,738	$	658,209	$	509,016	$	384,572	$	540,906	$	202,931		$	5,151,541

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

Loans by Vintage Year and Payment Performance

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
September 30, 2022
Real estate loans:
Commercial property
Payment performance
Performing	$	1,036,603	$	937,545	$	647,428	$	435,353	$	352,642	$	278,434	$	58,813	$	3,746,818
Nonperforming		—		—		—		—		3,531		1,254		—		4,785
Total commercial property		1,036,603		937,545		647,428		435,353		356,173		279,688		58,813		3,751,603
Construction
Payment performance
Performing		39,090		63,252		—		—		—		—		—		102,342
Nonperforming		—		—		—		—		—		—		—		—
Total construction		39,090		63,252		—		—		—		—		—		102,342
Residential
Payment performance
Performing		310,794		176,295		13,489		236		737		140,285		6,826		648,662
Nonperforming		15		—		—		—		—		912		—		927
Total residential		310,809		176,295		13,489		236		737		141,197		6,826		649,589
Total real estate loans
Payment performance
Performing		1,386,487		1,177,092		660,917		435,589		353,379		418,719		65,639		4,497,822
Nonperforming		15		—		—		—		3,531		2,166		—		5,712
Total real estate loans		1,386,502		1,177,092		660,917		435,589		356,910		420,885		65,639		4,503,534
Commercial and industrial loans:
Payment performance
Performing		283,314		120,459		45,219		44,280		11,753		14,263		212,336		731,624
Nonperforming		—		35		171		—		—		203		—		409
Total commercial and industrial loans		283,314		120,494		45,390		44,280		11,753		14,466		212,336		732,033
Equipment financing agreements:
Payment performance
Performing		233,883		183,731		53,553		62,107		23,802		2,878		—		559,954
Nonperforming		108		1,568		265		2,582		814		133		—		5,470
Total equipment financing agreements		233,991		185,299		53,818		64,689		24,616		3,011		—		565,424
Total loans receivable:
Payment performance
Performing		1,903,684		1,481,282		759,689		541,976		388,934		435,860		277,975		5,789,400
Nonperforming		123		1,603		436		2,582		4,345		2,502		—		11,591
Total loans receivable	$	1,903,807	$	1,482,885	$	760,125	$	544,558	$	393,279	$	438,362	$	277,975	$	5,800,991

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2021
Real estate loans:
Commercial property
Payment performance
Performing	$	1,203,197	$	725,339	$	501,293	$	423,515	$	286,935	$	419,464	$	43,116	$	3,602,859
Nonperforming		—		—		—		20		709		3,271		—		4,000
Total commercial property		1,203,197		725,339		501,293		423,535		287,644		422,735		43,116		3,606,859
Construction
Payment performance
Performing		73,808		631		—		—		—		20,567		—		95,006
Nonperforming		—		—		—		—		—		—		—		—
Total construction		73,808		631		—		—		—		20,567		—		95,006
Residential
Payment performance
Performing		194,948		16,975		247		20,743		73,973		84,052		8,381		399,319
Nonperforming		—		—		—		—		965		262		—		1,227
Total residential		194,948		16,975		247		20,743		74,938		84,314		8,381		400,546
Total real estate loans
Payment performance
Performing		1,471,953		742,945		501,540		444,258		360,908		524,083		51,497		4,097,184
Nonperforming		—		—		—		20		1,674		3,533		—		5,227
Total real estate loans		1,471,953		742,945		501,540		444,278		362,582		527,616		51,497		4,102,411
Commercial and industrial loans:
Payment performance
Performing		264,762		55,409		50,926		15,925		10,956		11,431		151,434		560,843
Nonperforming		—		3		708		—		4		273		—		988
Total commercial and industrial loans		264,762		55,412		51,634		15,925		10,960		11,704		151,434		561,831
Equipment financing agreements:
Payment performance
Performing		239,738		79,400		101,460		47,484		10,684		1,388		—		480,154
Nonperforming		716		981		3,575		1,329		346		198		—		7,145
Total equipment financing agreements		240,454		80,381		105,035		48,813		11,030		1,586		—		487,299
Total loans receivable:
Payment performance
Performing		1,976,453		877,754		653,926		507,667		382,548		536,902		202,931		5,138,181
Nonperforming		716		984		4,283		1,349		2,024		4,004		—		13,360
Total loans receivable	$	1,977,169	$	878,738	$	658,209	$	509,016	$	384,572	$	540,906	$	202,931	$	5,151,541

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

The following is an aging analysis of loans, including loans on nonaccrual status, disaggregated by loan class, as of the dates indicated:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(in thousands)
September 30, 2022
Real estate loans:
Commercial property
Retail	$	3,531	$	—	$	—	$	3,531	$	1,040,756	$	1,044,287	$	—
Hospitality		991		—		—		991		661,447		662,438		—
Other		214		—		269		483		2,044,395		2,044,878		—
Total commercial property loans		4,736		—		269		5,005		3,746,598		3,751,603		—
Construction		—		—		—		—		102,342		102,342		—
Residential		404		—		10		414		649,175		649,589		—
Total real estate loans		5,140		—		279		5,419		4,498,115		4,503,534		—
Commercial and industrial loans		82		35		—		117		731,916		732,033		—
Equipment financing agreements		3,666		1,130		1,586		6,382		559,042		565,424		—
Total loans receivable	$	8,888	$	1,165	$	1,865	$	11,918	$	5,789,073	$	5,800,991	$	—
December 31, 2021
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	970,134	$	970,134	$	—
Hospitality		556		—		—		556		717,136		717,692		—
Other		92		691		499		1,282		1,917,751		1,919,033		—
Total commercial property loans		648		691		499		1,838		3,605,021		3,606,859		—
Construction		—		—		—		—		95,006		95,006		—
Residential		570		750		556		1,876		398,670		400,546		—
Total real estate loans		1,218		1,441		1,055		3,714		4,098,697		4,102,411		—
Commercial and industrial loans		56		9		—		65		561,766		561,831		—
Equipment financing agreements		3,764		1,992		1,181		6,937		480,362		487,299		—
Total loans receivable	$	5,038	$	3,442	$	2,236	$	10,716	$	5,140,825	$	5,151,541	$	—

Nonaccrual Loans and Nonperforming Assets

The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of September 30, 2022 and December 31, 2021.

	September 30, 2022
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	3,530	$	—	$	—	$	3,530
Other		914		341		—		1,255
Total commercial property loans		4,444		341		—		4,785
Residential		912		15		—		927
Total real estate loans		5,356		356		—		5,712
Commercial and industrial loans		—		409		—		409
Equipment financing agreements		368		5,102		—		5,470
Total	$	5,724	$	5,867	$	—	$	11,591
	December 31, 2021
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,918	$	—	$	—	$	1,918
Other		1,745		337		—		2,082
Total commercial property loans		3,663		337		—		4,000
Residential		982		245		—		1,227
Total real estate loans		4,645		582		—		5,227
Commercial and industrial loans		8		980		—		988
Equipment financing agreements		1,172		5,973		—		7,145
Total	$	5,825	$	7,535	$	—	$	13,360

The Company did not recognize any interest income on nonaccrual loans for the three and nine months ended September 30, 2022 or 2021.

The following table details nonperforming assets as of the dates indicated:

	September 30, 2022		December 31, 2021
	(in thousands)
Nonaccrual loans	$	11,591	$	13,360
Loans receivable 90 days or more past due and still accruing		—		—
Total nonperforming loans receivable		11,591		13,360
Other real estate owned ("OREO")		792		675
Total nonperforming assets	$	12,383	$	14,035

OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021.

Troubled Debt Restructurings ("TDRs")

As of September 30, 2022 and December 31, 2021, TDRs were $1.6 million and $2.9 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise considered to a borrower for economic or legal reasons related to the borrower’s financial difficulties.

The following table details TDRs as of September 30, 2022 and December 31, 2021:

	Nonaccrual TDRs										Accrual TDRs
	Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total		Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total
	(in thousands)
September 30, 2022
Real estate loans	$	274	$	—	$	88	$	—	$	362	$	—	$	1,144	$	—	$	—	$	1,144
Commercial and industrial loans		—		111		—		—		111		—		—		—		—		—
Total	$	274	$	111	$	88	$	—	$	473	$	—	$	1,144	$	—	$	—	$	1,144
December 31, 2021
Real estate loans	$	346	$	2,046	$	372	$	—	$	2,764	$	—	$	—	$	—	$	—	$	—
Commercial and industrial loans		—		124		—		—		124		—		—		—		—		—
Total	$	346	$	2,170	$	372	$	—	$	2,888	$	—	$	—	$	—	$	—	$	—

The following table presents the number of loans by class modified as TDRs that occurred during the periods indicated, with their pre- and post-modification recorded amounts.

	Three Months Ended						Twelve Months Ended
	September 30, 2022						December 31, 2021
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(in thousands except for number of loans)
Real estate loans		—	$	—	$	—		—	$	—	$	—
Total		—	$	—	$	—		—	$	—	$	—
	Nine Months Ended						Twelve Months Ended
	September 30, 2022						December 31, 2021
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(in thousands except for number of loans)
Real estate loans		1	$	92	$	88		—	$	—	$	—
Total		1	$	92	$	88		—	$	—	$	—

All TDRs are individually analyzed using one of three criteria: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. At September 30, 2022 and December 31, 2021, the allowance resulting from the individual evaluation of TDRs was immaterial.

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. No loans defaulted during the three or nine months ended September 30, 2022 following modification. During the year ended December 31, 2021, no loans defaulted within the twelve-month period following modification.

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Servicing Assets

9 Months Ended

Sep. 30, 2022

Transfers And Servicing [Abstract]

Servicing Assets

Note 4 — Servicing Assets

The changes in servicing assets for the three and nine months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended September 30,
	2022			2021
	(in thousands)
Balance at beginning of period	$	7,354		$	6,199
Addition related to sale of SBA loans		828			1,171
Amortization		(758	)		(532	)
Balance at end of period	$	7,424		$	6,838

	Nine Months Ended September 30,
	2022			2021
	(in thousands)
Balance at beginning of period	$	7,080		$	6,212
Addition related to sale of SBA loans		2,377			2,328
Amortization		(2,033	)		(1,702	)
Balance at end of period	$	7,424		$	6,838

At September 30, 2022 and December 31, 2021, we serviced loans sold to unaffiliated parties of $505.2 million and $473.5 million, respectively. These represented loans that were sold for which the Bank continues to provide servicing. These loans are maintained off-balance sheet and are not included in the loans receivable balance. All of the loans serviced were SBA loans.

The Company recorded servicing fee income of $1.3 million and $1.1 million for the three months ended September 30, 2022 and 2021, respectively, and $3.7 million and $3.4 million for the nine months ended September 30, 2022 and 2021, respectively. Servicing fee income, net of the amortization of servicing assets, is included in other operating income in the consolidated statements of income. Amortization expense was $758,000 and $532,000 for the three months ended September 30, 2022 and 2021, respectively, and $2.0 million and $1.7 million for the nine months ended September 30, 2022 and 2021, respectively.

The fair value of servicing rights was $7.7 million at September 30, 2022. The fair value at September 30, 2022 was determined using discount rates ranging from 15.6 percent to 18.3 percent and prepayment speeds ranging from 11.0 percent to 17.0 percent, depending on the stratification of the specific right. The fair value of servicing rights was $8.1 million at December 31, 2021. The fair value at December 31, 2021 was determined using discount rates ranging from 10.4 percent to 16.7 percent and prepayment speeds ranging from 10.2 percent to 12.8 percent, depending on the stratification of the specific right.

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Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 5 — Income Taxes

The Company’s income tax expense was $11.0 million and $10.7 million, representing an effective income tax rate of 28.8 percent and 28.6 percent for the three months ended September 30, 2022 and 2021, respectively. The Company’s income tax expense was $29.7 million and $27.0 million, representing an effective income tax rate of 28.9 percent and 29.3 percent for the nine months ended September 30, 2022 and 2021, respectively.

Management concluded that as of September 30, 2022 and December 31, 2021, a valuation allowance of $1.6 million was appropriate against certain state net operating loss carry forwards and certain tax credits. For all other deferred tax assets, management believes it was more likely than not these deferred tax assets will be realized principally through future taxable income and reversal of existing taxable temporary differences. Net income tax assets were $66.2 million and $44.1 million as of September 30, 2022 and December 31, 2021, respectively.

As of September 30, 2022, the Company was subject to examination by various taxing authorities for its federal tax returns for the periods ending on or after December 31, 2018 and state tax returns for the periods ending on or after December 31, 2017. During the quarter ended September 30, 2022, there was no material change to the Company’s uncertain tax positions. The Company does not expect its unrecognized tax positions to change significantly over the next twelve months.

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Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Note 6 — Goodwill and other Intangibles

The third-party originators intangible of $0.5 million and goodwill of $11.0 million were recorded as a result of the acquisition of an equipment financing agreements portfolio in 2016. The core deposit intangible of $2.2 million was recognized for the core deposits acquired in a 2014 acquisition. The Company’s intangible assets were as follows for the periods indicated:

		September 30, 2022							December 31, 2021
	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Core deposit intangible	10 years	$	2,213	$	(1,998	)	$	215	$	2,213	$	(1,900	)	$	313
Third-party originators intangible	7 years		483		(461	)		22		483		(432	)		51
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,727	$	(2,460	)	$	11,267	$	13,727	$	(2,332	)	$	11,395

The Company performed an impairment analysis on its goodwill and other intangible assets as of December 31, 2021 and determined there was no impairment. No triggering event has occurred subsequent to December 31, 2021 that would require a reassessment of goodwill and other intangible assets.

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Deposits

9 Months Ended

Sep. 30, 2022

Deposits [Abstract]

Deposits

Note 7 — Deposits

Time deposits exceeding the FDIC insurance limit of $250,000 as of September 30, 2022 and December 31, 2021 were $258.1 million and $173.5 million, respectively.

The scheduled maturities of time deposits are as follows for the periods indicated:

At September 30, 2022	Time Deposits of $250,000 or More		Other Time Deposits		Total
	(in thousands)
2022	$	73,828	$	105,193	$	179,021
2023		246,457		750,316		996,773
2024		—		65,396		65,396
2025		265		2,942		3,207
2026 and thereafter		263		3,017		3,280
Total	$	320,813	$	926,864	$	1,247,677
At December 31, 2021
2022	$	206,478	$	672,821	$	879,299
2023		1,522		40,564		42,086
2024		—		60,854		60,854
2025		265		1,919		2,184
2026 and thereafter		262		2,503		2,765
Total	$	208,527	$	778,661	$	987,188

Accrued interest payable on deposits was $2.2 million and $1.2 million at September 30, 2022 and December 31, 2021, respectively. Total deposits reclassified to loans due to overdrafts at September 30, 2022 and December 31, 2021 were $700,000 and $277,000, respectively.

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Borrowings and Subordinated Debentures

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Borrowings and Subordinated Debentures

Note 8 — Borrowings and Subordinated Debentures

At September 30, 2022, the Bank had no overnight advances and $100.0 million of term advances outstanding with the FHLB with a weighted average interest rate of 0.87 percent. At December 31, 2021, the Bank had no overnight advances and $137.5 million of term advances with the FHLB with a weighted average rate of 1.05 percent. Interest expense on borrowings for the three months ended September 30, 2022 and 2021 was $349,000 and $409,000, respectively. Interest expense on borrowings for the nine months ended September 30, 2022 and 2021 was $1.1 million and $1.3 million, respectively.

	September 30, 2022					December 31, 2021
	Outstanding Balance		Weighted Average Rate			Outstanding Balance		Weighted Average Rate
	(dollars in thousands)
Overnight advances	$	—		0.00	%	$	—		0.00	%
Advances due within 12 months		50,000		0.97	%		50,000		1.62	%
Advances due over 12 months through 24 months		37,500		0.40	%		50,000		0.97	%
Advances due over 24 months through 36 months		12,500		1.90	%		37,500		0.40	%
Outstanding advances	$	100,000		0.87	%	$	137,500		1.05	%

The following is financial data pertaining to FHLB advances:

	September 30, 2022			December 31, 2021
	(dollars in thousands)
Weighted-average interest rate at end of period		0.87	%		1.05	%
Weighted-average interest rate during the period		1.07	%		1.17	%
Average balance of FHLB advances	$	131,337		$	145,277
Maximum amount outstanding at any month-end	$	215,000		$	162,500

The Bank maintains a secured credit facility with the FHLB, allowing the Bank to borrow on an overnight and term basis. The Bank had $2.36 billion and $2.30 billion of loans pledged as collateral with the FHLB as of September 30, 2022 and December 31, 2021, respectively. The FHLB statutory lending limit was $1.86 billion and $1.80 billion at September 30, 2022 and December 31, 2021, respectively. The remaining available borrowing capacity was $1.39 billion and $1.61 billion at September 30, 2022 and December 31, 2021, respectively.

The Bank also had securities with market values of $24.5 million and $34.7 million at September 30, 2022 and December 31, 2021, respectively, pledged with the FRB, which provided $23.0 million and $32.8 million in available borrowing capacity through the Fed Discount Window as of September 30, 2022 and December 31, 2021, respectively.

On August 20, 2021, the Company issued $110.0 million of Fixed-to-Floating Subordinated Notes (“2021 Notes”) with a maturity date of September 1, 2031. The 2021 Notes have an initial fixed interest rate of 3.75 percent per annum, payable semiannually in arrears on March 1 and September 1 of each year, up to but excluding September 1, 2026. From and including September 1, 2026 and thereafter, the 2021 Notes will bear interest at a floating rate per annum equal to the Benchmark rate (which is expected to be the Three-Month Term SOFR) plus 310 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. If the then current three-month term SOFR rate is less than zero, the three-month SOFR will be deemed to be zero. Debt issuance cost was $2.1 million, which is being amortized through the 2021 Notes’ maturity date. At September 30, 2022 and December 31, 2021, the balance of the 2021 Notes included in the Company’s Consolidated Balance Sheet, net of issuance cost, was $108.1 million and $108.0 million, respectively.

The Company issued $100.0 million of Fixed-to-Floating Subordinated Notes (“2027 Notes”) on March 21, 2017, with a maturity on March 30, 2027. The 2027 Notes had an initial fixed interest rate of 5.45 percent per annum. From and including March 30, 2022 and thereafter, the 2027 Notes bore interest at a floating rate equal to the then current three-month LIBOR, as calculated on each applicable date of determination, plus 3.315 percent payable quarterly.

On March 30, 2022, the Company redeemed its 2027 Notes. A portion of the redemption was funded with the proceeds from the Company’s 2021 subordinated debt offering. The redemption price for each of the 2027 Notes equaled 100 percent of the outstanding principal amount redeemed, plus any accrued and unpaid interest thereon. All interest accrued on the 2027 Notes ceased to accrue on and after March 30, 2022. Upon the redemption, the Company recognized a pre-tax charge of $1.1 million for the remaining unamortized debt issuance costs associated with the 2027 Notes.

At September 30, 2022 and December 31, 2021, the balance of the 2027 Notes included in the Company’s Consolidated Balance Sheet, net of debt issuance cost, was $0 and $86.2 million, respectively.

The Company assumed Junior Subordinated Deferrable Interest Debentures (“Subordinated Debentures”) as a result of an acquisition in 2014 with an unpaid principal balance of $26.8 million and an estimated fair value of $18.5 million. The $8.3 million discount is being amortized to interest expense through the debentures’ maturity date of March 15, 2036. A trust was formed in 2005 which issued $26.0 million of Trust Preferred Securities (“TPS”) at a 6.26 percent fixed rate for the first five years and a variable rate of three-month LIBOR plus 140 basis points thereafter. The TPS will be subject to mandatory redemption if the Subordinated Debentures are repaid by the Company. Interest is payable quarterly, and the Company has the option to defer interest payments on the Subordinated Debentures from time to time for a period not to exceed five consecutive years. At September 30, 2022 and December 31, 2021, the balance of Subordinated Debentures included in the Company’s Consolidated Balance Sheets, net of discount of $5.7 million and $6.0 million, was $21.1 million and $20.8 million, respectively. The amortization of discount was $104,000 and $102,000 for the three months ended September 30, 2022 and 2021, respectively, and $308,000 and $300,000 for the nine months ended September 30, 2022 and 2021, respectively.

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Earnings per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings per Share

Note 9 — Earnings Per Share

Earnings per share (“EPS”) is calculated on both a basic and a diluted basis. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted from the issuance of common stock that then shared in earnings, excluding common shares in treasury. For diluted EPS, the weighted-average number of common shares includes the impact of unvested performance-based restricted stock under the treasury method.

Unvested restricted stock containing rights to non-forfeitable dividends are considered participating securities prior to vesting and have been included in the earnings allocation in computing basic and diluted EPS under the two-class method.

The following table is a reconciliation of the components used to derive basic and diluted EPS for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(dollars in thousands, except per share amounts)
Basic EPS
Net income	$	27,169	$	26,565	$	72,915	$	65,346
Less: income allocated to unvested restricted stock		163		138		408		948
Income allocated to common shares	$	27,006	$	26,427	$	72,507	$	64,398
Weighted-average shares for basic EPS		30,314,439		30,474,391		30,289,068		30,222,978
Basic EPS (1)	$	0.89	$	0.87	$	2.39	$	2.13
Effect of dilutive stock options and unvested performance stock units		82,323		77,805		80,470		75,575
Diluted EPS
Income allocated to common shares	$	27,006	$	26,427	$	72,507	$	64,398
Weighted-average shares for diluted EPS		30,396,762		30,552,196		30,369,538		30,298,553
Diluted EPS (1)	$	0.89	$	0.86	$	2.39	$	2.13

(1)Per share amounts may not be able to be recalculated using net income and weighted-average shares presented above due to rounding.

There were no anti-dilutive stock options outstanding for the three months ended September 30, 2022 or 2021.

During the nine months ended September 30, 2022, the Company issued 38,036 performance stock units to executive officers from the 2021 Equity Compensation plan fair valued at $955,000 on the grant date of March 23, 2022. During the nine months ended September 30, 2021, the Company issued 42,626 performance stock units to executive officers from the 2013 Equity Compensation Plan fair valued at $784,000 on the grant date of March 24, 2021. These units have a three-year cliff vesting period and include dividend equivalent rights. Total performance stock units outstanding as of September 30, 2022 were 104,599 with an aggregate grant fair value of $2.0 million. As of September 30, 2022 and 2021, there were 104,599 and 66,563 performance stock units outstanding, respectively. In accordance with the treasury method, unvested performance stock units were included in the weighted average number of common shares for the diluted EPS calculation in the table above.

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Regulatory Matters

9 Months Ended

Sep. 30, 2022

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Regulatory Matters

Note 10 — Regulatory Matters

Federal bank regulatory agencies require bank holding companies and banks to maintain a minimum ratio of qualifying total capital to risk-weighted assets of 8.0 percent and a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0 percent. In addition to the risk-based guidelines, federal bank regulatory agencies require bank holding companies and banks to maintain a minimum ratio of Tier 1 capital to average assets, referred to as the leverage ratio, of 4.0 percent.

In order for banks to be considered “well capitalized,” federal bank regulatory agencies require a minimum ratio of qualifying total capital to risk-weighted assets of 10.0 percent and a minimum ratio of Tier 1 capital to risk-weighted assets of 8.0 percent. In addition to the risk-based guidelines, federal bank regulatory agencies require depository institutions to maintain a minimum ratio of Tier 1 capital to average assets, referred to as the leverage ratio, of 5.0 percent.

At September 30, 2022, the Bank’s capital ratios exceeded the minimum requirements for the Bank to be considered “well capitalized” and the Company exceeded all of its applicable minimum regulatory capital ratio requirements.

A capital conservation buffer of 2.5 percent must be met to avoid limitations on the ability of the Bank and the Company to pay dividends, repurchase shares or pay discretionary bonuses. The Bank's capital conservation buffer was 5.76 percent and 6.70 percent and the Company's capital conservation buffer was 5.55 percent and 5.93 percent as of September 30, 2022 and December 31, 2021, respectively.

In March 2020, federal banking agencies announced an interim final rule to delay the impact on regulatory capital arising from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company and the Bank adopted the capital transition relief over the permissible five-year period.

The capital ratios of Hanmi Financial and the Bank as of September 30, 2022 and December 31, 2021 were as follows:

						Minimum					Minimum to Be
						Regulatory					Categorized as
	Actual					Requirement					“Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
September 30, 2022
Total capital (to risk-weighted assets):
Hanmi Financial	$	879,761		14.38	%	$	489,404		8.00	%	N/A		N/A
Hanmi Bank	$	840,236		13.76	%	$	488,565		8.00	%	$	610,706		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	706,670		11.55	%	$	367,053		6.00	%	N/A		N/A
Hanmi Bank	$	777,145		12.73	%	$	366,424		6.00	%	$	488,565		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	685,531		11.21	%	$	275,290		4.50	%	N/A		N/A
Hanmi Bank	$	777,145		12.73	%	$	274,818		4.50	%	$	396,959		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	706,670		9.99	%	$	283,039		4.00	%	N/A		N/A
Hanmi Bank	$	777,145		11.02	%	$	282,187		4.00	%	$	352,734		5.00	%
December 31, 2021
Total capital (to risk-weighted assets):
Hanmi Financial	$	912,527		16.57	%	$	440,639		8.00	%	N/A		N/A
Hanmi Bank	$	809,279		14.70	%	$	440,493		8.00	%	$	550,616		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	657,250		11.93	%	$	330,479		6.00	%	N/A		N/A
Hanmi Bank	$	748,177		13.59	%	$	330,369		6.00	%	$	440,493		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	636,419		11.55	%	$	247,859		4.50	%	N/A		N/A
Hanmi Bank	$	748,177		13.59	%	$	247,777		4.50	%	$	357,900		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	657,250		9.63	%	$	273,133		4.00	%	N/A		N/A
Hanmi Bank	$	748,177		10.96	%	$	273,101		4.00	%	$	341,376		5.00	%

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Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 11 — Fair Value Measurements

Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are defined as follows:

•Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

•Level 2 - Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.

•Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, fair value is used on a non-recurring basis to evaluate assets or liabilities for impairment or for disclosure purposes.

We record securities available for sale at fair value on a recurring basis. Certain other assets, such as loans held for sale, impaired loans, OREO, and core deposit intangible, are recorded at fair value on a non-recurring basis. Non-recurring fair value measurements typically involve assets that are periodically evaluated for impairment and for which any impairment is recorded in the period in which the re-measurement is performed.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument below:

Securities available for sale - The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges. If quoted prices are not available, fair values are measured using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities, or other model-based valuation techniques requiring observable inputs other than quoted prices such as yield curve, prepayment speeds, and default rates. Level 1 securities include U.S. Treasury securities that are traded on an active exchange or by dealers or brokers in active over-the-counter markets. The fair value of these securities is determined by quoted prices on an active exchange or over-the-counter market. Level 2 securities primarily include U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities as well as municipal bonds in markets that are active. In determining the fair value of the securities categorized as Level 2, we obtain reports from nationally recognized broker-dealers detailing the fair value of each investment security held as of each reporting date. The broker-dealers use prices obtained from nationally recognized pricing services to value our fixed income securities. The fair value of the municipal securities is determined based on pricing data provided by nationally recognized pricing services. We review the prices obtained for reasonableness based on our understanding of the marketplace, and also consider any credit issues related to the bonds. As we have not made any adjustments to the market quotes provided to us and as they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy. Level 3 securities are instruments that are not traded in the market. As such, no observable market data for the instrument is available, which necessitates the use of significant unobservable inputs.

Derivatives – The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

Loans held for sale - Loans held for sale includes the guaranteed portion of SBA 7(a) loans carried at the lower of cost or fair value. Management obtains quotes, bids or pricing indication sheets on all or part of the loans directly from the purchasing financial institutions. Premiums received or to be received on the quotes, bids or pricing indication sheets are indicative of the fact that cost is lower than fair value. At September 30, 2022 and December 31, 2021, the entire balance of loans held for sale was recorded at its cost. We record loans held for sale on a nonrecurring basis with Level 2 inputs.

Nonperforming loans – Nonaccrual loans receivable and loans 90-days past due and still accruing interest are considered nonperforming for reporting purposes and are measured and recorded at fair value on a non-recurring basis. All nonperforming loans with a carrying balance over $250,000 are individually evaluated for the amount of impairment, if any. Nonperforming loans with a carrying balance of $250,000 or less are evaluated collectively. However, from time to time, nonrecurring fair value adjustments to collateral dependent nonperforming loans are recorded based on either the current appraised value of the collateral, a Level 2 measurement, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, a Level 3 measurement.

OREO - Fair value of OREO is based primarily on third party appraisals, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Appraisals are required annually and may be updated more frequently as circumstances require and the fair value adjustments are made to OREO based on the updated appraised value of the property.

Servicing assets - On a quarterly basis, the Company utilizes a third party service to evaluate servicing assets related to loans sold to unaffiliated parties with servicing retained. Servicing assets are assessed for impairment or increased obligation based on fair value at each reporting date.

Other repossessed assets – Fair value of equipment from equipment financing agreements contracts is based primarily on a third party valuation service, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Valuations are required at the time the asset is repossessed and may be subsequently updated periodically due to the Company’s short-term possession of the asset prior to sale or as circumstances require and the fair value adjustments are made to the asset based on its value prior to sale.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

As of September 30, 2022 and December 31, 2021, assets and liabilities measured at fair value on a recurring basis are as follows:

	Level 1		Level 2		Level 3
			Significant
			Observable
	Quoted Prices in		Inputs with No
	Active Markets		Active Market		Significant
	for Identical		with Identical		Unobservable
	Assets		Characteristics		Inputs		Total Fair Value
	(in thousands)
September 30, 2022
Assets:
Securities available for sale:
U.S. Treasury securities	$	33,160	$	—	$	—	$	33,160
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		522,370		—		522,370
Collateralized mortgage obligations		—		86,406		—		86,406
Debt securities		—		127,634		—		127,634
Total U.S. government agency and sponsored agency obligations		—		736,410		—		736,410
Municipal bonds-tax exempt		—		60,581		—		60,581
Total securities available for sale	$	33,160	$	796,991	$	—	$	830,151
Derivative financial instruments	$	—	$	7,891	$	—	$	7,891
Liabilities:
Derivative financial instruments	$	—	$	7,724	$	—	$	7,724
December 31, 2021
Assets:
Securities available for sale:
U.S. Treasury securities	$	15,397	$	—	$	—	$	15,397
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		607,505		—		607,505
Collateralized mortgage obligations		—		93,604		—		93,604
Debt securities		—		115,896		—		115,896
Total U.S. government agency and sponsored agency obligations		—		817,005		—		817,005
Municipal bonds-tax exempt		—		78,388		—		78,388
Total securities available for sale	$	15,397	$	895,393	$	—	$	910,790
Derivative financial instruments	$	—	$	1,379	$	—	$	1,379
Liabilities:
Derivative financial instruments	$	—	$	1,360	$	—	$	1,360

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

As of September 30, 2022 and December 31, 2021, assets and liabilities measured at fair value on a non-recurring basis are as follows:

			Level 1		Level 2		Level 3
					Significant
					Observable
			Quoted Prices in		Inputs With No
			Active Markets		Active Market		Significant
			for Identical		With Identical		Unobservable
	Total		Assets		Characteristics		Inputs
	(in thousands)
September 30, 2022
Assets:
Collateral dependent loans (1)	$	5,051	$	—	$	—	$	5,051
Other real estate owned		792		—		—		792
Repossessed personal property		224		—		—		224
December 31, 2021
Assets:
Collateral dependent loans (2)	$	3,398	$	—	$	—	$	3,398
Other real estate owned		675		—		—		675
Repossessed personal property		8		—		—		8

(1)Consisted of real estate loans of $5.1 million.

(2)Consisted of real estate loans of $3.4 million.

The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
September 30, 2022
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	3,531	Market approach	Market data comparison	5% to 25% / 16%	(1)
Other		608	Market approach	Market data comparison	(35)% to 20% / (11)%	(1)
Residential		912	Market approach	Market data comparison	(19)% to 10% / 2%	(1)
Total real estate loans		5,051
Total	$	5,051
Other real estate owned	$	792	Market approach	Market data comparison	(20)% to 20% / (3)%
Repossessed personal property		224	Market approach	Market data comparison		(2)
December 31, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	1,917	Market approach	Market data comparison	(28)% to 23% / (6)%	(1)
Other		499	Market approach	Market data comparison	(20)% to 20% / 0%	(1)
Residential		982	Market approach	Market data comparison	(19)% to 8% / 3%	(1)
Total real estate loans		3,398
Total	$	3,398
Other real estate owned	$	675	Market approach	Market data comparison	(20)% to (5)% / (12)%
Repossessed personal property		8	Market approach	Market data comparison		(2)

(1)Appraisal reports utilize a combination of valuation techniques including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine the appraised value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation scenarios. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in this table represent increases to the sales comparison and negative adjustment represent decreases.

(2)The equipment is usually too low in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values.

ASC 825, Financial Instruments, requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured on a recurring basis or non-recurring basis are discussed above.

The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data in order to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825), among other provisions, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Other than certain financial instruments for which we had concluded that the carrying amounts approximate fair value, the fair value estimates shown below were based on an exit price notion as of September 30, 2022, as required by ASU 2016-01. The financial instruments for which we had concluded that the carrying amounts approximate fair value include, cash and due from banks, accrued interest receivable and payable, and noninterest-bearing deposits. The fair values of off-balance sheet items were based upon the difference between the current value of similar loans and the price at which the Bank has committed to make the loans.

The estimated fair values of financial instruments were as follows:

	September 30, 2022
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	275,159	$	275,159	$	—	$	—
Securities available for sale		830,151		33,160		796,991		—
Loans held for sale		10,044		—		10,562		—
Loans receivable, net of allowance for credit losses		5,729,407		—		—		5,640,118
Accrued interest receivable		15,356		15,356		—		—
Financial liabilities:
Noninterest-bearing deposits		2,771,498		—		2,771,498		—
Interest-bearing deposits		3,429,878		—		—		3,433,676
Borrowings and subordinated debentures		229,261		—		95,861		122,747
Accrued interest payable		2,180		2,180		—		—

	December 31, 2021
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	608,965	$	608,965	$	—	$	—
Securities available for sale		910,790		15,397		895,393		—
Loans held for sale		13,342		—		14,723		—
Loans receivable, net of allowance for credit losses		5,078,984		—		—		5,072,282
Accrued interest receivable		11,976		11,976		—		—
Financial liabilities:
Noninterest-bearing deposits		2,574,517		—		2,574,517		—
Interest-bearing deposits		3,211,752		—		—		3,211,708
Borrowings and subordinated debentures		352,506		—		137,198		213,179
Accrued interest payable		1,161		1,161		—		—

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Off-Balance Sheet Commitments

9 Months Ended

Sep. 30, 2022

Risks And Uncertainties [Abstract]

Off-Balance Sheet Commitments

Note 12 — Off-Balance Sheet Commitments

The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk similar to the risk involved with on-balance sheet items.

The Bank’s exposure to losses in the event of non-performance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for extending loan facilities to customers. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, was based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, premises and equipment, and income-producing or borrower-occupied properties.

The following table shows the distribution of total loan commitments as of the dates indicated:

	September 30,		December 31,
	2022		2021
	(in thousands)
Unused commitments to extend credit	$	746,354	$	626,474
Standby letters of credit		63,597		49,287
Commercial letters of credit		19,511		39,261
Total commitments	$	829,462	$	715,022

The allowance for credit losses related to off-balance sheet items was maintained at a level believed to be sufficient to absorb current expected lifetime losses related to these unfunded credit facilities. The determination of the allowance adequacy was based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities.

Activity in the allowance for credit losses related to off-balance sheet items was as follows for the periods indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in thousands)
Balance at beginning of period	$	2,313	$	3,643	$	2,586	$	2,792
Provision expense (recovery) for credit losses		936		1,208		663		2,059
Balance at end of period	$	3,249	$	4,851	$	3,249	$	4,851

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Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

Note 13 — Leases

The Company enters into leases in the normal course of business primarily for bank branch offices, back-office operations locations, business development offices, information technology data centers and information technology equipment. The Company’s leases have remaining terms ranging from one to thirteen years, some of which include renewal or termination options to extend the lease for up to five years.

The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease components in its real estate leases as part of the associated lease component. The Company has also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company’s balance sheet.

Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the term of the lease. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term.

As of September 30, 2022, the outstanding balances for our right-of-use asset and lease liability were $42.0 million and $45.8 million, respectively. The outstanding balances of the right-of-use asset and lease liability were $46.3 million and $49.7 million, respectively, as of December 31, 2021.

In determining the discount rates, since most of our leases do not provide an implicit rate, we used our incremental borrowing rate provided by the FHLB of San Francisco based on the information available at the commencement date to calculate the present value of lease payments.

At September 30, 2022, future minimum rental commitments under these non-cancelable operating leases, with initial or remaining terms of one year or more, were as follows:

	Amount
	(in thousands)
2022	$	8,076
2023		7,465
2024		7,061
2025		5,881
2026		5,181
Thereafter		16,305
Remaining lease commitments		49,969
Interest		(4,194	)
Present value of lease liability	$	45,775

Weighted average remaining lease terms for the Company's operating leases were 7.25 years and 7.85 years as of September 30, 2022 and December 31, 2021, respectively. Weighted average discount rates used for the Company's operating leases were 2.38 percent as of September 30, 2022 and December 31, 2021. Net lease expense recognized for each of the three months and nine months ended September 30, 2022 and 2021 was $2.1 million and $6.2 million, respectively. This included operating lease costs of $2.0 million for each of the three months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2022 and 2021, operating lease costs were $5.9 million and $6.1 million, respectively. Sublease income for operating leases was immaterial for the three and nine months ended September 30, 2022 and 2021.

Cash paid and included in cash flows from operating activities for amounts used in the measurement of the lease liability of the Company's operating leases was $1.9 million for each of the three months ended September 30, 2022 and 2021, and $5.9 million and $6.0 million for the nine months ended September 30, 2022 and 2021, respectively.

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Liquidity

9 Months Ended

Sep. 30, 2022

Liquidity [Abstract]

Liquidity

Note 14 — Liquidity

Hanmi Financial

As of September 30, 2022, Hanmi Financial had $14.9 million in cash on deposit with its bank subsidiary and $11.8 million of U.S. Treasury securities at fair value. As of December 31, 2021, the Company had $94.9 million in cash on deposit with its bank subsidiary. Management believes that Hanmi Financial, on a stand-alone basis, had adequate liquid assets to meet its current debt obligations.

Hanmi Bank

The principal objective of our liquidity management program is to maintain the Bank’s ability to meet the day-to-day cash flow requirements of our customers who wish either to withdraw funds or to draw upon credit facilities to meet their cash needs. Management believes that the Bank, on a stand-alone basis, has adequate liquid assets to meet its current obligations. The Bank’s primary funding source will continue to be deposits originating from its branch platform. The Bank’s wholesale funds historically consisted of FHLB advances and brokered deposits. As of September 30, 2022 and December 31, 2021, the Bank had $100.0 million and $137.5 million, respectively, of FHLB advances, and $93.3 million and $141.8 million, respectively, of brokered deposits.

We monitor the sources and uses of funds on a regular basis to maintain an acceptable liquidity position. The Bank’s primary source of borrowings is the FHLB, from which the Bank is eligible to borrow up to 30.0 percent of its assets. As of September 30, 2022 and December 31, 2021, the total borrowing capacity available, based on pledged collateral was $1.61 billion and $1.84 billion, respectively. The remaining available borrowing capacity was $1.39 billion and $1.61 billion as of September 30, 2022 and December 31, 2021, respectively.

The amount that the FHLB is willing to advance differs based on the quality and character of qualifying collateral pledged by the Bank, and the FHLB may adjust the advance rates for qualifying collateral upwards or downwards from time to time. To the extent deposit renewals and deposit growth are not sufficient to fund maturing and withdrawable deposits, repay maturing borrowings, fund existing and future loans, equipment financing agreements and securities, and otherwise fund working capital needs and capital expenditures, the Bank may utilize the remaining borrowing capacity from its FHLB borrowing arrangement.

As a means of augmenting its liquidity, the Bank had an available borrowing source of $23.0 million from the Federal Reserve Discount Window, to which the Bank pledged securities with a carrying value of $28.6 million, with no borrowings as of September 30, 2022. The Bank also maintains a line of credit for repurchase agreements up to $100.0 million. The Bank also had three unsecured federal funds lines of credit totaling $115.0 million with no outstanding balances as of September 30, 2022.

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Note 15 — Derivatives and Hedging Activities

The Company’s derivative financial instruments consist entirely of interest rate swap agreements between the Company and its customers and other third party counterparties. The Company enters into “back-to-back swap” arrangements whereby the Company executes interest rate swap agreements with its customers and acquires an offsetting swap position from a third party counterparty. These derivative financial statements are accounted for at fair value, with changes in fair value recognized in the Company’s Consolidated Statements of Income.

The table below presents the fair value of the Company’s derivative financial instruments as well as their location on the Balance Sheet as of September 30, 2022 and December 31, 2021.

As of September 30, 2022	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	61,589	Other Assets	$	7,891	$	61,589	Other Liabilities	$	7,724
Total derivatives not designated as hedging instruments				$	7,891				$	7,724
As of December 31, 2021	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	61,968	Other Assets	$	1,379	$	61,968	Other Liabilities	$	1,360
Total derivatives not designated as hedging instruments				$	1,379				$	1,360

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement for the three and nine months ended September 30, 2022 and 2021.

Derivatives Not Designated as Hedging Instruments under Subtopic 815-20	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
		(in thousands)
Interest rate products	Other income	$	35	$	7	$	148	$	92
Total		$	35	$	7	$	148	$	92

The Company did not recognize any fee income from its derivative financial instruments for the three and nine months ended September 30, 2022 or 2021.

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2022 and December 31, 2021. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the Consolidated Balance Sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the Consolidated Balance Sheets.

Offsetting of Derivative Assets
As of September 30, 2022
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
	(in thousands)
Derivatives	$	7,891	$	—	$	7,891	$	7,724	$	167	$	—
Offsetting of Derivative Liabilities
As of September 30, 2022
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
	(in thousands)
Derivatives	$	7,724	$	—	$	7,724	$	7,724	$	—	$	—
Offsetting of Derivative Assets
As of December 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
	(in thousands)
Derivatives	$	1,379	$	—	$	1,379	$	1,360	$	19	$	—
Offsetting of Derivative Liabilities
As of December 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
	(in thousands)
Derivatives	$	1,360	$	—	$	1,360	$	1,360	$	—	$	—

The Company has agreements with each of its derivative counterparties that contain a provision stating if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. In addition, these agreements may also require the Company to post additional collateral should it fail to maintain its status as a well- or adequately- capitalized institution.

As of September 30, 2022 and December 31, 2021, the fair value of derivatives in a net asset position for counterparty transactions, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $7.9 million and $1.4 million, respectively. As of September 30, 2022, the Company had not posted any collateral with its counterparties related to these agreements and is adequately collateralized since its net asset position was $167,000 ($7.9 million of fair value of assets less $7.7 million of fair value of liabilities) as of September 30, 2022. As of December 31, 2021, the Company had posted no collateral related to these agreements and was adequately collateralized since its net asset position was $19,000 ($1.4 million of fair value of assets less $1.4 million of fair value of liabilities).

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Subsequent Events

9 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

Note 16 — Subsequent Events

As of the date of issuance of these financial statements, no subsequent events were identified.

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Organization and Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are defined as follows:

•Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

•Level 2 - Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.

•Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, fair value is used on a non-recurring basis to evaluate assets or liabilities for impairment or for disclosure purposes.

We record securities available for sale at fair value on a recurring basis. Certain other assets, such as loans held for sale, impaired loans, OREO, and core deposit intangible, are recorded at fair value on a non-recurring basis. Non-recurring fair value measurements typically involve assets that are periodically evaluated for impairment and for which any impairment is recorded in the period in which the re-measurement is performed.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument below:

Securities available for sale - The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges. If quoted prices are not available, fair values are measured using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities, or other model-based valuation techniques requiring observable inputs other than quoted prices such as yield curve, prepayment speeds, and default rates. Level 1 securities include U.S. Treasury securities that are traded on an active exchange or by dealers or brokers in active over-the-counter markets. The fair value of these securities is determined by quoted prices on an active exchange or over-the-counter market. Level 2 securities primarily include U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities as well as municipal bonds in markets that are active. In determining the fair value of the securities categorized as Level 2, we obtain reports from nationally recognized broker-dealers detailing the fair value of each investment security held as of each reporting date. The broker-dealers use prices obtained from nationally recognized pricing services to value our fixed income securities. The fair value of the municipal securities is determined based on pricing data provided by nationally recognized pricing services. We review the prices obtained for reasonableness based on our understanding of the marketplace, and also consider any credit issues related to the bonds. As we have not made any adjustments to the market quotes provided to us and as they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy. Level 3 securities are instruments that are not traded in the market. As such, no observable market data for the instrument is available, which necessitates the use of significant unobservable inputs.

Derivatives – The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

Loans held for sale - Loans held for sale includes the guaranteed portion of SBA 7(a) loans carried at the lower of cost or fair value. Management obtains quotes, bids or pricing indication sheets on all or part of the loans directly from the purchasing financial institutions. Premiums received or to be received on the quotes, bids or pricing indication sheets are indicative of the fact that cost is lower than fair value. At September 30, 2022 and December 31, 2021, the entire balance of loans held for sale was recorded at its cost. We record loans held for sale on a nonrecurring basis with Level 2 inputs.

Nonperforming loans – Nonaccrual loans receivable and loans 90-days past due and still accruing interest are considered nonperforming for reporting purposes and are measured and recorded at fair value on a non-recurring basis. All nonperforming loans with a carrying balance over $250,000 are individually evaluated for the amount of impairment, if any. Nonperforming loans with a carrying balance of $250,000 or less are evaluated collectively. However, from time to time, nonrecurring fair value adjustments to collateral dependent nonperforming loans are recorded based on either the current appraised value of the collateral, a Level 2 measurement, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, a Level 3 measurement.

OREO - Fair value of OREO is based primarily on third party appraisals, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Appraisals are required annually and may be updated more frequently as circumstances require and the fair value adjustments are made to OREO based on the updated appraised value of the property.

Servicing assets - On a quarterly basis, the Company utilizes a third party service to evaluate servicing assets related to loans sold to unaffiliated parties with servicing retained. Servicing assets are assessed for impairment or increased obligation based on fair value at each reporting date.

Other repossessed assets – Fair value of equipment from equipment financing agreements contracts is based primarily on a third party valuation service, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Valuations are required at the time the asset is repossessed and may be subsequently updated periodically due to the Company’s short-term possession of the asset prior to sale or as circumstances require and the fair value adjustments are made to the asset based on its value prior to sale.

The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
September 30, 2022
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	3,531	Market approach	Market data comparison	5% to 25% / 16%	(1)
Other		608	Market approach	Market data comparison	(35)% to 20% / (11)%	(1)
Residential		912	Market approach	Market data comparison	(19)% to 10% / 2%	(1)
Total real estate loans		5,051
Total	$	5,051
Other real estate owned	$	792	Market approach	Market data comparison	(20)% to 20% / (3)%
Repossessed personal property		224	Market approach	Market data comparison		(2)
December 31, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	1,917	Market approach	Market data comparison	(28)% to 23% / (6)%	(1)
Other		499	Market approach	Market data comparison	(20)% to 20% / 0%	(1)
Residential		982	Market approach	Market data comparison	(19)% to 8% / 3%	(1)
Total real estate loans		3,398
Total	$	3,398
Other real estate owned	$	675	Market approach	Market data comparison	(20)% to (5)% / (12)%
Repossessed personal property		8	Market approach	Market data comparison		(2)

(1)Appraisal reports utilize a combination of valuation techniques including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine the appraised value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation scenarios. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in this table represent increases to the sales comparison and negative adjustment represent decreases.

(2)The equipment is usually too low in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values.

ASC 825, Financial Instruments, requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured on a recurring basis or non-recurring basis are discussed above.

The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data in order to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825), among other provisions, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Other than certain financial instruments for which we had concluded that the carrying amounts approximate fair value, the fair value estimates shown below were based on an exit price notion as of September 30, 2022, as required by ASU 2016-01. The financial instruments for which we had concluded that the carrying amounts approximate fair value include, cash and due from banks, accrued interest receivable and payable, and noninterest-bearing deposits. The fair values of off-balance sheet items were based upon the difference between the current value of similar loans and the price at which the Bank has committed to make the loans.

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Securities (Tables)

9 Months Ended

Sep. 30, 2022

Investments Debt And Equity Securities [Abstract]

Summary of Investment Securities Available for Sale

The following is a summary of securities available for sale as of the dates indicated:

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
	(in thousands)
September 30, 2022
U.S. Treasury securities	$	34,876	$	—	$	(1,716	)	$	33,160
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		615,335		—		(92,965	)		522,370
Collateralized mortgage obligations		98,872		—		(12,466	)		86,406
Debt securities		139,904		—		(12,270	)		127,634
Total U.S. government agency and sponsored agency obligations		854,111		—		(117,701	)		736,410
Municipal bonds-tax exempt		78,396		—		(17,815	)		60,581
Total securities available for sale	$	967,383	$	—	$	(137,232	)	$	830,151
December 31, 2021
U.S. Treasury securities	$	15,457	$	1	$	(61	)	$	15,397
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		615,393		18		(7,906	)		607,505
Collateralized mortgage obligations		95,153		41		(1,590	)		93,604
Debt securities		117,499		—		(1,603	)		115,896
Total U.S. government agency and sponsored agency obligations		828,045		59		(11,099	)		817,005
Municipal bonds-tax exempt		79,152		117		(881	)		78,388
Total securities available for sale	$	922,654	$	177	$	(12,041	)	$	910,790

Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity

The amortized cost and estimated fair value of securities as of September 30, 2022 and December 31, 2021, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities.

	September 30, 2022				December 31, 2021
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	14,984	$	14,649	$	1,103	$	1,108
Over one year through five years		169,164		155,085		126,483		125,069
Over five years through ten years		36,905		32,703		51,338		50,770
Over ten years		746,330		627,714		743,730		733,843
Total	$	967,383	$	830,151	$	922,654	$	910,790

Summary of Debt Securities Available for Sale in an Unrealized Loss Position for Which an Allowance for Credit Losses Has Not Been Recorded

The following table summarizes debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded at September 30, 2022 and December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position:

	Holding Period
	Less than 12 Months							12 Months or More							Total
	Gross			Estimated		Number		Gross			Estimated		Number		Gross			Estimated		Number
	Unrealized			Fair		of		Unrealized			Fair		of		Unrealized			Fair		of
	Loss			Value		Securities		Loss			Value		Securities		Loss			Value		Securities
	(in thousands, except number of securities)
September 30, 2022
U.S. Treasury securities	$	(1,145	)	$	28,773		12	$	(571	)	$	4,387		1	$	(1,716	)	$	33,160		13
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		(14,222	)		104,500		33		(78,743	)		417,870		105		(92,965	)		522,370		138
Collateralized mortgage obligations		(1,526	)		25,479		10		(10,940	)		60,927		18		(12,466	)		86,406		28
Debt securities		(2,390	)		38,488		9		(9,880	)		89,146		18		(12,270	)		127,634		27
Total U.S. government agency and sponsored agency obligations		(18,138	)		168,467		52		(99,563	)		567,943		141		(117,701	)		736,410		193
Municipal bonds-tax exempt		(2,735	)		10,906		3		(15,080	)		49,675		16		(17,815	)		60,581		19
Total	$	(22,018	)	$	208,146		67	$	(115,214	)	$	622,005		158	$	(137,232	)	$	830,151		225
December 31, 2021
U.S. Treasury securities	$	(61	)	$	8,391		2	$	—		$	—		—	$	(61	)	$	8,391		2
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		(6,252	)		535,610		102		(1,654	)		59,457		11		(7,906	)		595,067		113
Collateralized mortgage obligations		(1,256	)		76,894		16		(334	)		12,548		3		(1,590	)		89,442		19
Debt securities		(1,503	)		110,996		21		(100	)		4,900		1		(1,603	)		115,896		22
Total U.S. government agency and sponsored agency obligations		(9,011	)		723,500		139		(2,088	)		76,905		15		(11,099	)		800,405		154
Municipal bonds-tax exempt		(881	)		68,548		17		—			—		—		(881	)		68,548		17
Total	$	(9,953	)	$	800,439		158	$	(2,088	)	$	76,905		15	$	(12,041	)	$	877,344		173

Realized Gains and Losses on Sales of Investment Securities

Realized gains and losses on sales of securities and proceeds from sales of securities were as follows for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Gross realized gains on sales of securities	$	—	$	—	$	—	$	99
Gross realized losses on sales of securities		—		—		—		—
Net realized gains on sales of securities	$	—	$	—	$	—	$	99
Proceeds from sales of securities	$	—	$	—	$	—	$	8,035

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Loans (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Loans

Loans consisted of the following as of the dates indicated:

	September 30, 2022			December 31, 2021
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,044,287		$	970,134
Hospitality		662,438			717,692
Other (1)		2,044,878			1,919,033
Total commercial property loans		3,751,603			3,606,859
Construction		102,342			95,006
Residential (2)		649,589			400,546
Total real estate loans		4,503,534			4,102,411
Commercial and industrial loans (3)		732,033			561,831
Equipment financing agreements		565,424			487,299
Loans receivable		5,800,991			5,151,541
Allowance for credit losses		(71,584	)		(72,557	)
Loans receivable, net	$	5,729,407		$	5,078,984

(1)Includes mixed-use, multifamily, office, industrial, gas stations, faith-based facilities, medical and warehouse; all other property types represent less than one percent of total loans receivable.

(2)Includes $2.4 million and $3.9 million of home equity loans and lines, and $5.6 million and $6.0 of personal loans at September 30, 2022 and December 31, 2021, respectively.

(3)At September 30, 2022 and December 31, 2021, Paycheck Protection Program ("PPP") loans were $1.0 million and $3.0 million, respectively.

Activity for Loans Held for Sale

The following is the activity for loans held for sale for the three months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	10,976		$	7,552		$	18,528
Originations and transfers		23,013			12,198			35,211
Sales		(27,493	)		(16,192	)		(43,685	)
Principal paydowns and amortization		(6	)		(4	)		(10	)
Balance at end of period	$	6,490		$	3,554		$	10,044
September 30, 2021
Balance at beginning of period	$	13,092		$	22,938		$	36,030
Originations and transfers		28,537			15,228			43,765
Sales		(27,513	)		(34,956	)		(62,469	)
Principal paydowns and amortization		(4	)		559			555
Balance at end of period	$	14,112		$	3,769		$	17,881

The following is the activity for loans held for sale for the nine months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	6,954		$	6,388		$	13,342
Originations and transfers		72,708			39,207			111,915
Sales		(73,166	)		(42,033	)		(115,199	)
Principal payoffs and amortization		(6	)		(8	)		(14	)
Balance at end of period	$	6,490		$	3,554		$	10,044
September 30, 2021
Balance at beginning of period	$	8,042		$	526		$	8,568
Originations and transfers		71,005			162,637			233,642
Sales		(64,930	)		(160,293	)		(225,223	)
Principal payoffs and amortization		(5	)		899			894
Balance at end of period	$	14,112		$	3,769		$	17,881

Allowance for Credit Losses by Portfolio Segment

The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	46,112		$	14,275		$	12,680		$	73,067
Less loans charged off		1,356			8			716			2,080
Recoveries on loans receivable previously charged off		(373	)		(228	)		(369	)		(970	)
Provision (recovery) for credit losses		395			381			(1,149	)		(373	)
Ending balance	$	45,524		$	14,876		$	11,184		$	71,584
September 30, 2021
Balance at beginning of period	$	63,029		$	8,059		$	12,284		$	83,372
Less loans charged off		—			186			791			977
Recoveries on loans receivable previously charged off		(1,162	)		(330	)		(350	)		(1,842	)
Provision (recovery) for credit losses		(8,128	)		507			(3	)		(7,624	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613

The following table details the information on the allowance for credit losses by portfolio segment as of and for the nine months ended September 30, 2022 and 2021:

	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
September 30, 2022
Balance at beginning of period	$	48,890		$	12,418		$	11,249			72,557
Less loans charged off		1,886			87			1,548			3,521
Recoveries on loans receivable previously charged off		(632	)		(679	)		(1,117	)		(2,428	)
Provision (recovery) for credit losses		(2,112	)		1,866			366			120
Ending balance	$	45,524		$	14,876		$	11,184		$	71,584
September 30, 2021
Balance at beginning of period	$	51,876		$	21,410		$	17,140		$	90,426
Less loans charged off		1,491			550			3,893			5,934
Recoveries on loans receivable previously charged off		(1,597	)		(602	)		(694	)		(2,893	)
Provision (recovery) for credit losses		4,081			(12,752	)		(2,101	)		(10,772	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613

The table below illustrates the allowance for credit losses by loan portfolio segment and each loan portfolio segment as a percentage of total loans.

	September 30, 2022										December 31, 2021
	Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans			Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans
	(dollars in thousands)
Real estate loans:
Commercial property
Retail	$	7,758		10.8	%	$	1,044,287		18.0	%	$	6,579		9.1	%	$	970,134		18.8	%
Hospitality		15,417		21.5	%		662,438		11.4	%		22,670		31.2	%		717,692		13.9	%
Other		15,450		21.7	%		2,044,878		35.3	%		15,065		20.8	%		1,919,033		37.3	%
Total commercial property loans		38,625		54.0	%		3,751,603		64.7	%		44,314		61.1	%		3,606,859		70.0	%
Construction		4,034		5.6	%		102,342		1.8	%		4,078		5.6	%		95,006		1.8	%
Residential		2,865		4.0	%		649,589		11.2	%		498		0.7	%		400,546		7.8	%
Total real estate loans		45,524		63.6	%		4,503,534		77.7	%		48,890		67.4	%		4,102,411		79.6	%
Commercial and industrial loans		14,876		20.8	%		732,033		12.6	%		12,418		17.1	%		561,831		10.9	%
Equipment financing agreements		11,184		15.6	%		565,424		9.7	%		11,249		15.5	%		487,299		9.5	%
Total	$	71,584		100.0	%	$	5,800,991		100.0	%	$	72,557		100.0	%	$	5,151,541		100.0	%

Summary of Amortized Cost Basis of Collateral Dependent Loans By Class of Loans

The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2022 and December 31, 2021, for which repayment is expected to be obtained through the sale of the underlying collateral.

	September 30, 2022		December 31, 2021
	Amortized Cost		Amortized Cost
	(in thousands)
Real estate loans:
Commercial property
Retail	$	3,531	$	1,917
Hospitality		—		—
Other (1)		608		499
Total commercial property loans		4,139		2,416
Residential		912		982
Total real estate loans		5,051		3,398
Total	$	5,051	$	3,398

(1)Includes mixed-use, multifamily, office, industrial, gas stations, faith-based facilities, medical and warehouse; all other property types represent less than one percent of total loans receivable.

Credit Quality of Loan Portfolio

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
September 30, 2022
Real estate loans:
Commercial property
Risk Rating							`
Pass / Pass-Watch	$	1,035,752	$	924,041	$	629,274	$	422,378	$	320,721	$	252,048	$	57,112	$	3,641,326
Special Mention		—		13,504		18,154		7,159		21,469		9,570		1,701		71,557
Classified		851		—		—		5,816		13,983		18,070		—		38,720
Total commercial property		1,036,603		937,545		647,428		435,353		356,173		279,688		58,813		3,751,603
Construction
Risk Rating
Pass / Pass-Watch		39,090		63,252		—		—		—		—		—		102,342
Special Mention		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—
Total construction		39,090		63,252		—		—		—		—		—		102,342
Residential
Risk Rating
Pass / Pass-Watch		310,794		176,295		13,146		236		737		140,285		6,476		647,969
Special Mention		—		—		343		—		—		—		350		693
Classified		15		—		—		—		—		912		—		927
Total residential		310,809		176,295		13,489		236		737		141,197		6,826		649,589
Total real estate loans
Risk Rating
Pass / Pass-Watch		1,385,636		1,163,588		642,420		422,614		321,458		392,333		63,588		4,391,637
Special Mention		—		13,504		18,497		7,159		21,469		9,570		2,051		72,250
Classified		866		—		—		5,816		13,983		18,982		—		39,647
Total real estate loans		1,386,502		1,177,092		660,917		435,589		356,910		420,885		65,639		4,503,534
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		283,314		110,850		45,219		29,583		11,656		13,864		184,223		678,709
Special Mention		—		9,609		—		13,514		—		107		27,472		50,702
Classified		—		35		171		1,183		97		495		641		2,622
Total commercial and industrial loans		283,314		120,494		45,390		44,280		11,753		14,466		212,336		732,033
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		233,883		183,731		53,553		62,107		23,802		2,878		—		559,954
Special Mention		—		—		—		—		—		—		—		—
Classified		108		1,568		265		2,582		814		133		—		5,470
Total equipment financing agreements		233,991		185,299		53,818		64,689		24,616		3,011		—		565,424
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,902,833		1,458,169		741,192		514,304		356,916		409,075		247,811		5,630,300
Special Mention		—		23,113		18,497		20,673		21,469		9,677		29,523		122,952
Classified		974		1,603		436		9,581		14,894		19,610		641		47,739
Total loans receivable	$	1,903,807	$	1,482,885	$	760,125	$	544,558	$	393,279	$	438,362	$	277,975	$	5,800,991

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis			Total
December 31, 2021
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	1,203,197	$	706,470	$	488,250	$	406,288	$	277,680	$	384,064	$	41,413		$	3,507,362
Special Mention		—		18,869		7,593		—		6,999		16,879		1,703			52,043
Classified		—		—		5,450		17,247		2,965		21,792		—			47,454
Total commercial property		1,203,197		725,339		501,293		423,535		287,644		422,735		43,116			3,606,859
Construction
Risk Rating
Pass / Pass-Watch		73,808		631		—		—		—		—		—			74,439
Special Mention		—		—		—		—		—		20,567		—			20,567
Classified		—		—		—		—		—		—		—			—
Total construction		73,808		631		—		—		—		20,567		—			95,006
Residential
Risk Rating
Pass / Pass-Watch		194,948		16,975		247		19,813		73,567		82,076		8,381			396,007
Special Mention		—		—		—		930		406		2,221		—			3,557
Classified		—		—		—		—		965		17		—			982
Total residential		194,948		16,975		247		20,743		74,938		84,314		8,381			400,546
Total real estate loans
Risk Rating
Pass / Pass-Watch		1,471,953		724,076		488,497		426,101		351,247		466,140		49,794			3,977,808
Special Mention		—		18,869		7,593		930		7,405		39,667		1,703			76,167
Classified		—		—		5,450		17,247		3,930		21,809		—			48,436
Total real estate loans		1,471,953		742,945		501,540		444,278		362,582		527,616		51,497			4,102,411
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		264,762		55,135		36,937		15,780		10,874		6,016		148,148			537,652
Special Mention		—		274		13,989		—		67		4,802		(5	)		19,127
Classified		—		3		708		145		19		886		3,291			5,052
Total commercial and industrial loans		264,762		55,412		51,634		15,925		10,960		11,704		151,434			561,831
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		239,738		79,400		101,460		47,485		10,683		1,388		—			480,154
Special Mention		—		—		—		—		—		—		—			—
Classified		716		981		3,575		1,328		347		198		—			7,145
Total equipment financing agreements		240,454		80,381		105,035		48,813		11,030		1,586		—			487,299
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,976,453		858,611		626,894		489,366		372,804		473,544		197,942			4,995,614
Special Mention		—		19,143		21,582		930		7,472		44,469		1,698			95,294
Classified		716		984		9,733		18,720		4,296		22,893		3,291			60,633
Total loans receivable	$	1,977,169	$	878,738	$	658,209	$	509,016	$	384,572	$	540,906	$	202,931		$	5,151,541

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

Loans by Vintage Year and Payment Performance

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
September 30, 2022
Real estate loans:
Commercial property
Payment performance
Performing	$	1,036,603	$	937,545	$	647,428	$	435,353	$	352,642	$	278,434	$	58,813	$	3,746,818
Nonperforming		—		—		—		—		3,531		1,254		—		4,785
Total commercial property		1,036,603		937,545		647,428		435,353		356,173		279,688		58,813		3,751,603
Construction
Payment performance
Performing		39,090		63,252		—		—		—		—		—		102,342
Nonperforming		—		—		—		—		—		—		—		—
Total construction		39,090		63,252		—		—		—		—		—		102,342
Residential
Payment performance
Performing		310,794		176,295		13,489		236		737		140,285		6,826		648,662
Nonperforming		15		—		—		—		—		912		—		927
Total residential		310,809		176,295		13,489		236		737		141,197		6,826		649,589
Total real estate loans
Payment performance
Performing		1,386,487		1,177,092		660,917		435,589		353,379		418,719		65,639		4,497,822
Nonperforming		15		—		—		—		3,531		2,166		—		5,712
Total real estate loans		1,386,502		1,177,092		660,917		435,589		356,910		420,885		65,639		4,503,534
Commercial and industrial loans:
Payment performance
Performing		283,314		120,459		45,219		44,280		11,753		14,263		212,336		731,624
Nonperforming		—		35		171		—		—		203		—		409
Total commercial and industrial loans		283,314		120,494		45,390		44,280		11,753		14,466		212,336		732,033
Equipment financing agreements:
Payment performance
Performing		233,883		183,731		53,553		62,107		23,802		2,878		—		559,954
Nonperforming		108		1,568		265		2,582		814		133		—		5,470
Total equipment financing agreements		233,991		185,299		53,818		64,689		24,616		3,011		—		565,424
Total loans receivable:
Payment performance
Performing		1,903,684		1,481,282		759,689		541,976		388,934		435,860		277,975		5,789,400
Nonperforming		123		1,603		436		2,582		4,345		2,502		—		11,591
Total loans receivable	$	1,903,807	$	1,482,885	$	760,125	$	544,558	$	393,279	$	438,362	$	277,975	$	5,800,991

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2021
Real estate loans:
Commercial property
Payment performance
Performing	$	1,203,197	$	725,339	$	501,293	$	423,515	$	286,935	$	419,464	$	43,116	$	3,602,859
Nonperforming		—		—		—		20		709		3,271		—		4,000
Total commercial property		1,203,197		725,339		501,293		423,535		287,644		422,735		43,116		3,606,859
Construction
Payment performance
Performing		73,808		631		—		—		—		20,567		—		95,006
Nonperforming		—		—		—		—		—		—		—		—
Total construction		73,808		631		—		—		—		20,567		—		95,006
Residential
Payment performance
Performing		194,948		16,975		247		20,743		73,973		84,052		8,381		399,319
Nonperforming		—		—		—		—		965		262		—		1,227
Total residential		194,948		16,975		247		20,743		74,938		84,314		8,381		400,546
Total real estate loans
Payment performance
Performing		1,471,953		742,945		501,540		444,258		360,908		524,083		51,497		4,097,184
Nonperforming		—		—		—		20		1,674		3,533		—		5,227
Total real estate loans		1,471,953		742,945		501,540		444,278		362,582		527,616		51,497		4,102,411
Commercial and industrial loans:
Payment performance
Performing		264,762		55,409		50,926		15,925		10,956		11,431		151,434		560,843
Nonperforming		—		3		708		—		4		273		—		988
Total commercial and industrial loans		264,762		55,412		51,634		15,925		10,960		11,704		151,434		561,831
Equipment financing agreements:
Payment performance
Performing		239,738		79,400		101,460		47,484		10,684		1,388		—		480,154
Nonperforming		716		981		3,575		1,329		346		198		—		7,145
Total equipment financing agreements		240,454		80,381		105,035		48,813		11,030		1,586		—		487,299
Total loans receivable:
Payment performance
Performing		1,976,453		877,754		653,926		507,667		382,548		536,902		202,931		5,138,181
Nonperforming		716		984		4,283		1,349		2,024		4,004		—		13,360
Total loans receivable	$	1,977,169	$	878,738	$	658,209	$	509,016	$	384,572	$	540,906	$	202,931	$	5,151,541

(1)Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

Analysis of Past Due Loans, Including Loans on Nonaccrual Status, Disaggregated by Loan Class

The following is an aging analysis of loans, including loans on nonaccrual status, disaggregated by loan class, as of the dates indicated:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(in thousands)
September 30, 2022
Real estate loans:
Commercial property
Retail	$	3,531	$	—	$	—	$	3,531	$	1,040,756	$	1,044,287	$	—
Hospitality		991		—		—		991		661,447		662,438		—
Other		214		—		269		483		2,044,395		2,044,878		—
Total commercial property loans		4,736		—		269		5,005		3,746,598		3,751,603		—
Construction		—		—		—		—		102,342		102,342		—
Residential		404		—		10		414		649,175		649,589		—
Total real estate loans		5,140		—		279		5,419		4,498,115		4,503,534		—
Commercial and industrial loans		82		35		—		117		731,916		732,033		—
Equipment financing agreements		3,666		1,130		1,586		6,382		559,042		565,424		—
Total loans receivable	$	8,888	$	1,165	$	1,865	$	11,918	$	5,789,073	$	5,800,991	$	—
December 31, 2021
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	970,134	$	970,134	$	—
Hospitality		556		—		—		556		717,136		717,692		—
Other		92		691		499		1,282		1,917,751		1,919,033		—
Total commercial property loans		648		691		499		1,838		3,605,021		3,606,859		—
Construction		—		—		—		—		95,006		95,006		—
Residential		570		750		556		1,876		398,670		400,546		—
Total real estate loans		1,218		1,441		1,055		3,714		4,098,697		4,102,411		—
Commercial and industrial loans		56		9		—		65		561,766		561,831		—
Equipment financing agreements		3,764		1,992		1,181		6,937		480,362		487,299		—
Total loans receivable	$	5,038	$	3,442	$	2,236	$	10,716	$	5,140,825	$	5,151,541	$	—

Schedule of Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due 90 Days and Still Accruing

The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of September 30, 2022 and December 31, 2021.

	September 30, 2022
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	3,530	$	—	$	—	$	3,530
Other		914		341		—		1,255
Total commercial property loans		4,444		341		—		4,785
Residential		912		15		—		927
Total real estate loans		5,356		356		—		5,712
Commercial and industrial loans		—		409		—		409
Equipment financing agreements		368		5,102		—		5,470
Total	$	5,724	$	5,867	$	—	$	11,591
	December 31, 2021
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,918	$	—	$	—	$	1,918
Other		1,745		337		—		2,082
Total commercial property loans		3,663		337		—		4,000
Residential		982		245		—		1,227
Total real estate loans		4,645		582		—		5,227
Commercial and industrial loans		8		980		—		988
Equipment financing agreements		1,172		5,973		—		7,145
Total	$	5,825	$	7,535	$	—	$	13,360

Non-Performing Assets

The following table details nonperforming assets as of the dates indicated:

	September 30, 2022		December 31, 2021
	(in thousands)
Nonaccrual loans	$	11,591	$	13,360
Loans receivable 90 days or more past due and still accruing		—		—
Total nonperforming loans receivable		11,591		13,360
Other real estate owned ("OREO")		792		675
Total nonperforming assets	$	12,383	$	14,035

Troubled Debt Restructurings

The following table details TDRs as of September 30, 2022 and December 31, 2021:

	Nonaccrual TDRs										Accrual TDRs
	Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total		Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total
	(in thousands)
September 30, 2022
Real estate loans	$	274	$	—	$	88	$	—	$	362	$	—	$	1,144	$	—	$	—	$	1,144
Commercial and industrial loans		—		111		—		—		111		—		—		—		—		—
Total	$	274	$	111	$	88	$	—	$	473	$	—	$	1,144	$	—	$	—	$	1,144
December 31, 2021
Real estate loans	$	346	$	2,046	$	372	$	—	$	2,764	$	—	$	—	$	—	$	—	$	—
Commercial and industrial loans		—		124		—		—		124		—		—		—		—		—
Total	$	346	$	2,170	$	372	$	—	$	2,888	$	—	$	—	$	—	$	—	$	—

Summary of Loans by Class Modified as TDRs

The following table presents the number of loans by class modified as TDRs that occurred during the periods indicated, with their pre- and post-modification recorded amounts.

	Three Months Ended						Twelve Months Ended
	September 30, 2022						December 31, 2021
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(in thousands except for number of loans)
Real estate loans		—	$	—	$	—		—	$	—	$	—
Total		—	$	—	$	—		—	$	—	$	—
	Nine Months Ended						Twelve Months Ended
	September 30, 2022						December 31, 2021
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(in thousands except for number of loans)
Real estate loans		1	$	92	$	88		—	$	—	$	—
Total		1	$	92	$	88		—	$	—	$	—

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Servicing Assets (Tables)

9 Months Ended

Sep. 30, 2022

Transfers And Servicing [Abstract]

Summary of Changes in Servicing Assets

The changes in servicing assets for the three and nine months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended September 30,
	2022			2021
	(in thousands)
Balance at beginning of period	$	7,354		$	6,199
Addition related to sale of SBA loans		828			1,171
Amortization		(758	)		(532	)
Balance at end of period	$	7,424		$	6,838

	Nine Months Ended September 30,
	2022			2021
	(in thousands)
Balance at beginning of period	$	7,080		$	6,212
Addition related to sale of SBA loans		2,377			2,328
Amortization		(2,033	)		(1,702	)
Balance at end of period	$	7,424		$	6,838

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Goodwill and Other Intangibles (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Goodwill and Other Intangible Assets

The Company’s intangible assets were as follows for the periods indicated:

		September 30, 2022							December 31, 2021
	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Core deposit intangible	10 years	$	2,213	$	(1,998	)	$	215	$	2,213	$	(1,900	)	$	313
Third-party originators intangible	7 years		483		(461	)		22		483		(432	)		51
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,727	$	(2,460	)	$	11,267	$	13,727	$	(2,332	)	$	11,395

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Deposits (Tables)

9 Months Ended

Sep. 30, 2022

Deposits [Abstract]

Scheduled Maturities of Time Deposits

The scheduled maturities of time deposits are as follows for the periods indicated:

At September 30, 2022	Time Deposits of $250,000 or More		Other Time Deposits		Total
	(in thousands)
2022	$	73,828	$	105,193	$	179,021
2023		246,457		750,316		996,773
2024		—		65,396		65,396
2025		265		2,942		3,207
2026 and thereafter		263		3,017		3,280
Total	$	320,813	$	926,864	$	1,247,677
At December 31, 2021
2022	$	206,478	$	672,821	$	879,299
2023		1,522		40,564		42,086
2024		—		60,854		60,854
2025		265		1,919		2,184
2026 and thereafter		262		2,503		2,765
Total	$	208,527	$	778,661	$	987,188

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Borrowings and Subordinated Debentures (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Borrowings

	September 30, 2022					December 31, 2021
	Outstanding Balance		Weighted Average Rate			Outstanding Balance		Weighted Average Rate
	(dollars in thousands)
Overnight advances	$	—		0.00	%	$	—		0.00	%
Advances due within 12 months		50,000		0.97	%		50,000		1.62	%
Advances due over 12 months through 24 months		37,500		0.40	%		50,000		0.97	%
Advances due over 24 months through 36 months		12,500		1.90	%		37,500		0.40	%
Outstanding advances	$	100,000		0.87	%	$	137,500		1.05	%

Summary of Financial Data Pertaining to Federal Home Loan Bank Advances

The following is financial data pertaining to FHLB advances:

	September 30, 2022			December 31, 2021
	(dollars in thousands)
Weighted-average interest rate at end of period		0.87	%		1.05	%
Weighted-average interest rate during the period		1.07	%		1.17	%
Average balance of FHLB advances	$	131,337		$	145,277
Maximum amount outstanding at any month-end	$	215,000		$	162,500

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Reconciliation of Components Used to Derive Basic and Diluted EPS

The following table is a reconciliation of the components used to derive basic and diluted EPS for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(dollars in thousands, except per share amounts)
Basic EPS
Net income	$	27,169	$	26,565	$	72,915	$	65,346
Less: income allocated to unvested restricted stock		163		138		408		948
Income allocated to common shares	$	27,006	$	26,427	$	72,507	$	64,398
Weighted-average shares for basic EPS		30,314,439		30,474,391		30,289,068		30,222,978
Basic EPS (1)	$	0.89	$	0.87	$	2.39	$	2.13
Effect of dilutive stock options and unvested performance stock units		82,323		77,805		80,470		75,575
Diluted EPS
Income allocated to common shares	$	27,006	$	26,427	$	72,507	$	64,398
Weighted-average shares for diluted EPS		30,396,762		30,552,196		30,369,538		30,298,553
Diluted EPS (1)	$	0.89	$	0.86	$	2.39	$	2.13

(1)Per share amounts may not be able to be recalculated using net income and weighted-average shares presented above due to rounding.

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Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2022

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Capital Ratios of Hanmi Financial and Bank

The capital ratios of Hanmi Financial and the Bank as of September 30, 2022 and December 31, 2021 were as follows:

						Minimum					Minimum to Be
						Regulatory					Categorized as
	Actual					Requirement					“Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
September 30, 2022
Total capital (to risk-weighted assets):
Hanmi Financial	$	879,761		14.38	%	$	489,404		8.00	%	N/A		N/A
Hanmi Bank	$	840,236		13.76	%	$	488,565		8.00	%	$	610,706		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	706,670		11.55	%	$	367,053		6.00	%	N/A		N/A
Hanmi Bank	$	777,145		12.73	%	$	366,424		6.00	%	$	488,565		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	685,531		11.21	%	$	275,290		4.50	%	N/A		N/A
Hanmi Bank	$	777,145		12.73	%	$	274,818		4.50	%	$	396,959		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	706,670		9.99	%	$	283,039		4.00	%	N/A		N/A
Hanmi Bank	$	777,145		11.02	%	$	282,187		4.00	%	$	352,734		5.00	%
December 31, 2021
Total capital (to risk-weighted assets):
Hanmi Financial	$	912,527		16.57	%	$	440,639		8.00	%	N/A		N/A
Hanmi Bank	$	809,279		14.70	%	$	440,493		8.00	%	$	550,616		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	657,250		11.93	%	$	330,479		6.00	%	N/A		N/A
Hanmi Bank	$	748,177		13.59	%	$	330,369		6.00	%	$	440,493		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	636,419		11.55	%	$	247,859		4.50	%	N/A		N/A
Hanmi Bank	$	748,177		13.59	%	$	247,777		4.50	%	$	357,900		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	657,250		9.63	%	$	273,133		4.00	%	N/A		N/A
Hanmi Bank	$	748,177		10.96	%	$	273,101		4.00	%	$	341,376		5.00	%

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

As of September 30, 2022 and December 31, 2021, assets and liabilities measured at fair value on a recurring basis are as follows:

	Level 1		Level 2		Level 3
			Significant
			Observable
	Quoted Prices in		Inputs with No
	Active Markets		Active Market		Significant
	for Identical		with Identical		Unobservable
	Assets		Characteristics		Inputs		Total Fair Value
	(in thousands)
September 30, 2022
Assets:
Securities available for sale:
U.S. Treasury securities	$	33,160	$	—	$	—	$	33,160
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		522,370		—		522,370
Collateralized mortgage obligations		—		86,406		—		86,406
Debt securities		—		127,634		—		127,634
Total U.S. government agency and sponsored agency obligations		—		736,410		—		736,410
Municipal bonds-tax exempt		—		60,581		—		60,581
Total securities available for sale	$	33,160	$	796,991	$	—	$	830,151
Derivative financial instruments	$	—	$	7,891	$	—	$	7,891
Liabilities:
Derivative financial instruments	$	—	$	7,724	$	—	$	7,724
December 31, 2021
Assets:
Securities available for sale:
U.S. Treasury securities	$	15,397	$	—	$	—	$	15,397
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		607,505		—		607,505
Collateralized mortgage obligations		—		93,604		—		93,604
Debt securities		—		115,896		—		115,896
Total U.S. government agency and sponsored agency obligations		—		817,005		—		817,005
Municipal bonds-tax exempt		—		78,388		—		78,388
Total securities available for sale	$	15,397	$	895,393	$	—	$	910,790
Derivative financial instruments	$	—	$	1,379	$	—	$	1,379
Liabilities:
Derivative financial instruments	$	—	$	1,360	$	—	$	1,360

Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

As of September 30, 2022 and December 31, 2021, assets and liabilities measured at fair value on a non-recurring basis are as follows:

			Level 1		Level 2		Level 3
					Significant
					Observable
			Quoted Prices in		Inputs With No
			Active Markets		Active Market		Significant
			for Identical		With Identical		Unobservable
	Total		Assets		Characteristics		Inputs
	(in thousands)
September 30, 2022
Assets:
Collateral dependent loans (1)	$	5,051	$	—	$	—	$	5,051
Other real estate owned		792		—		—		792
Repossessed personal property		224		—		—		224
December 31, 2021
Assets:
Collateral dependent loans (2)	$	3,398	$	—	$	—	$	3,398
Other real estate owned		675		—		—		675
Repossessed personal property		8		—		—		8

(1)Consisted of real estate loans of $5.1 million.

(2)Consisted of real estate loans of $3.4 million.

Quantitative Information about Level 3 Fair Value Assumptions for Assets Measured at Fair Value on Non-Recurring Basis

The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
September 30, 2022
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	3,531	Market approach	Market data comparison	5% to 25% / 16%	(1)
Other		608	Market approach	Market data comparison	(35)% to 20% / (11)%	(1)
Residential		912	Market approach	Market data comparison	(19)% to 10% / 2%	(1)
Total real estate loans		5,051
Total	$	5,051
Other real estate owned	$	792	Market approach	Market data comparison	(20)% to 20% / (3)%
Repossessed personal property		224	Market approach	Market data comparison		(2)
December 31, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	1,917	Market approach	Market data comparison	(28)% to 23% / (6)%	(1)
Other		499	Market approach	Market data comparison	(20)% to 20% / 0%	(1)
Residential		982	Market approach	Market data comparison	(19)% to 8% / 3%	(1)
Total real estate loans		3,398
Total	$	3,398
Other real estate owned	$	675	Market approach	Market data comparison	(20)% to (5)% / (12)%
Repossessed personal property		8	Market approach	Market data comparison		(2)

(1)Appraisal reports utilize a combination of valuation techniques including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine the appraised value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation scenarios. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in this table represent increases to the sales comparison and negative adjustment represent decreases.

(2)The equipment is usually too low in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values.

Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments were as follows:

	September 30, 2022
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	275,159	$	275,159	$	—	$	—
Securities available for sale		830,151		33,160		796,991		—
Loans held for sale		10,044		—		10,562		—
Loans receivable, net of allowance for credit losses		5,729,407		—		—		5,640,118
Accrued interest receivable		15,356		15,356		—		—
Financial liabilities:
Noninterest-bearing deposits		2,771,498		—		2,771,498		—
Interest-bearing deposits		3,429,878		—		—		3,433,676
Borrowings and subordinated debentures		229,261		—		95,861		122,747
Accrued interest payable		2,180		2,180		—		—

	December 31, 2021
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	608,965	$	608,965	$	—	$	—
Securities available for sale		910,790		15,397		895,393		—
Loans held for sale		13,342		—		14,723		—
Loans receivable, net of allowance for credit losses		5,078,984		—		—		5,072,282
Accrued interest receivable		11,976		11,976		—		—
Financial liabilities:
Noninterest-bearing deposits		2,574,517		—		2,574,517		—
Interest-bearing deposits		3,211,752		—		—		3,211,708
Borrowings and subordinated debentures		352,506		—		137,198		213,179
Accrued interest payable		1,161		1,161		—		—

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Off-Balance Sheet Commitments (Tables)

9 Months Ended

Sep. 30, 2022

Risks And Uncertainties [Abstract]

Distribution of Total Loan Commitments

The following table shows the distribution of total loan commitments as of the dates indicated:

	September 30,		December 31,
	2022		2021
	(in thousands)
Unused commitments to extend credit	$	746,354	$	626,474
Standby letters of credit		63,597		49,287
Commercial letters of credit		19,511		39,261
Total commitments	$	829,462	$	715,022

Allowance for Credit Losses Related to Off-Balance Sheet Items

Activity in the allowance for credit losses related to off-balance sheet items was as follows for the periods indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in thousands)
Balance at beginning of period	$	2,313	$	3,643	$	2,586	$	2,792
Provision expense (recovery) for credit losses		936		1,208		663		2,059
Balance at end of period	$	3,249	$	4,851	$	3,249	$	4,851

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Leases (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Future Minimum Rental Commitments Under Non-cancelable Operating Leases

At September 30, 2022, future minimum rental commitments under these non-cancelable operating leases, with initial or remaining terms of one year or more, were as follows:

	Amount
	(in thousands)
2022	$	8,076
2023		7,465
2024		7,061
2025		5,881
2026		5,181
Thereafter		16,305
Remaining lease commitments		49,969
Interest		(4,194	)
Present value of lease liability	$	45,775

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Financial Instruments as well as their Location on Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their location on the Balance Sheet as of September 30, 2022 and December 31, 2021.

As of September 30, 2022	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	61,589	Other Assets	$	7,891	$	61,589	Other Liabilities	$	7,724
Total derivatives not designated as hedging instruments				$	7,891				$	7,724
As of December 31, 2021	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	61,968	Other Assets	$	1,379	$	61,968	Other Liabilities	$	1,360
Total derivatives not designated as hedging instruments				$	1,379				$	1,360

Effect of Derivative Financial Instruments that are Not Designated as Hedging Instruments on Income Statement

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement for the three and nine months ended September 30, 2022 and 2021.

Derivatives Not Designated as Hedging Instruments under Subtopic 815-20	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
		(in thousands)
Interest rate products	Other income	$	35	$	7	$	148	$	92
Total		$	35	$	7	$	148	$	92

Summary of Gross Presentation, Effects of Offsetting and a Net Presentation of Derivatives

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2022 and December 31, 2021. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the Consolidated Balance Sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the Consolidated Balance Sheets.

Offsetting of Derivative Assets
As of September 30, 2022
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
	(in thousands)
Derivatives	$	7,891	$	—	$	7,891	$	7,724	$	167	$	—
Offsetting of Derivative Liabilities
As of September 30, 2022
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
	(in thousands)
Derivatives	$	7,724	$	—	$	7,724	$	7,724	$	—	$	—
Offsetting of Derivative Assets
As of December 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
	(in thousands)
Derivatives	$	1,379	$	—	$	1,379	$	1,360	$	19	$	—
Offsetting of Derivative Liabilities
As of December 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
	(in thousands)
Derivatives	$	1,360	$	—	$	1,360	$	1,360	$	—	$	—

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Securities - Summary of Investment Securities Available for Sale (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 967,383	$ 922,654
Gross Unrealized Gain	0	177
Gross Unrealized Loss	(137,232)	(12,041)
Estimated Fair Value	830,151	910,790
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	34,876	15,457
Gross Unrealized Gain		1
Gross Unrealized Loss	(1,716)	(61)
Estimated Fair Value	33,160	15,397
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	615,335	615,393
Gross Unrealized Gain		18
Gross Unrealized Loss	(92,965)	(7,906)
Estimated Fair Value	522,370	607,505
Collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	98,872	95,153
Gross Unrealized Gain		41
Gross Unrealized Loss	(12,466)	(1,590)
Estimated Fair Value	86,406	93,604
Debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	139,904	117,499
Gross Unrealized Loss	(12,270)	(1,603)
Estimated Fair Value	127,634	115,896
Total U.S. government agency and sponsored agency obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	854,111	828,045
Gross Unrealized Gain	0	59
Gross Unrealized Loss	(117,701)	(11,099)
Estimated Fair Value	736,410	817,005
Municipal bonds-tax exempt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	78,396	79,152
Gross Unrealized Gain		117
Gross Unrealized Loss	(17,815)	(881)
Estimated Fair Value	$ 60,581	$ 78,388

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Securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Investments Debt And Equity Securities [Abstract]
Available-for-Sale Within one year, Amortized Cost	$ 14,984	$ 1,103
Available-for-Sale Over one year through five years, Amortized Cost	169,164	126,483
Available-for-Sale Over five years through ten years, Amortized Cost	36,905	51,338
Available-for-Sale Over ten years, Amortized Cost	746,330	743,730
Amortized Cost	967,383	922,654
Available-for-Sale Within one year, Estimated Fair Value	14,649	1,108
Available-for-Sale Over one year through five years, Estimated Fair Value	155,085	125,069
Available-for-Sale Over five years through ten years, Estimated Fair Value	32,703	50,770
Available-for-Sale Over ten years, Estimated Fair Value	627,714	733,843
Estimated fair value	$ 830,151	$ 910,790

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Securities - Summary of Debt Securities Available for Sale in an Unrealized Loss Position for Which an Allowance for Credit Losses Has Not Been Recorded (Detail) $ in Thousands	Sep. 30, 2022 USD ($) Security	Dec. 31, 2021 USD ($) Security
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (22,018)	$ (9,953)
Available-for-Sale Within One Year, Estimated Fair Value	$ 208,146	$ 800,439
Available-for-Sale Within One Year, Number of Securities | Security	67	158
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (115,214)	$ (2,088)
Available-for-Sale More than One Year, Estimated Fair Value	$ 622,005	$ 76,905
Available-for-Sale More than One Year, Number of Securities | Security	158	15
Available-for-Sale, Gross Unrealized Loss	$ (137,232)	$ (12,041)
Available-for-Sale, Estimated Fair Value	$ 830,151	$ 877,344
Available-for-Sale, Number of Securities | Security	225	173
U.S. Treasury securities
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (1,145)	$ (61)
Available-for-Sale Within One Year, Estimated Fair Value	$ 28,773	$ 8,391
Available-for-Sale Within One Year, Number of Securities | Security	12	2
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (571)
Available-for-Sale More than One Year, Estimated Fair Value	$ 4,387
Available-for-Sale More than One Year, Number of Securities | Security	1
Available-for-Sale, Gross Unrealized Loss	$ (1,716)	$ (61)
Available-for-Sale, Estimated Fair Value	$ 33,160	$ 8,391
Available-for-Sale, Number of Securities | Security	13	2
Mortgage-backed securities
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (14,222)	$ (6,252)
Available-for-Sale Within One Year, Estimated Fair Value	$ 104,500	$ 535,610
Available-for-Sale Within One Year, Number of Securities | Security	33	102
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (78,743)	$ (1,654)
Available-for-Sale More than One Year, Estimated Fair Value	$ 417,870	$ 59,457
Available-for-Sale More than One Year, Number of Securities | Security	105	11
Available-for-Sale, Gross Unrealized Loss	$ (92,965)	$ (7,906)
Available-for-Sale, Estimated Fair Value	$ 522,370	$ 595,067
Available-for-Sale, Number of Securities | Security	138	113
Collateralized mortgage obligations
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (1,526)	$ (1,256)
Available-for-Sale Within One Year, Estimated Fair Value	$ 25,479	$ 76,894
Available-for-Sale Within One Year, Number of Securities | Security	10	16
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (10,940)	$ (334)
Available-for-Sale More than One Year, Estimated Fair Value	$ 60,927	$ 12,548
Available-for-Sale More than One Year, Number of Securities | Security	18	3
Available-for-Sale, Gross Unrealized Loss	$ (12,466)	$ (1,590)
Available-for-Sale, Estimated Fair Value	$ 86,406	$ 89,442
Available-for-Sale, Number of Securities | Security	28	19
Debt securities
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (2,390)	$ (1,503)
Available-for-Sale Within One Year, Estimated Fair Value	$ 38,488	$ 110,996
Available-for-Sale Within One Year, Number of Securities | Security	9	21
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (9,880)	$ (100)
Available-for-Sale More than One Year, Estimated Fair Value	$ 89,146	$ 4,900
Available-for-Sale More than One Year, Number of Securities | Security	18	1
Available-for-Sale, Gross Unrealized Loss	$ (12,270)	$ (1,603)
Available-for-Sale, Estimated Fair Value	$ 127,634	$ 115,896
Available-for-Sale, Number of Securities | Security	27	22
Total U.S. government agency and sponsored agency obligations
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (18,138)	$ (9,011)
Available-for-Sale Within One Year, Estimated Fair Value	$ 168,467	$ 723,500
Available-for-Sale Within One Year, Number of Securities | Security	52	139
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (99,563)	$ (2,088)
Available-for-Sale More than One Year, Estimated Fair Value	$ 567,943	$ 76,905
Available-for-Sale More than One Year, Number of Securities | Security	141	15
Available-for-Sale, Gross Unrealized Loss	$ (117,701)	$ (11,099)
Available-for-Sale, Estimated Fair Value	$ 736,410	$ 800,405
Available-for-Sale, Number of Securities | Security	193	154
Municipal bonds-tax exempt
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (2,735)	$ (881)
Available-for-Sale Within One Year, Estimated Fair Value	$ 10,906	$ 68,548
Available-for-Sale Within One Year, Number of Securities | Security	3	17
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (15,080)
Available-for-Sale More than One Year, Estimated Fair Value	$ 49,675
Available-for-Sale More than One Year, Number of Securities | Security	16
Available-for-Sale, Gross Unrealized Loss	$ (17,815)	$ (881)
Available-for-Sale, Estimated Fair Value	$ 60,581	$ 68,548
Available-for-Sale, Number of Securities | Security	19	17

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Securities - Realized Gains and Losses on Sales of Investment Securities (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investments Debt And Equity Securities [Abstract]
Gross realized gains on sales of securities				$ 99,000
Net realized gains on sales of securities				99,000
Proceeds from sales of securities	$ 0	$ 0	$ 0	$ 8,035,000

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Securities - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Proceeds from sales of securities	$ 0	$ 0	$ 0	$ 8,035,000
Net gains in earnings resulting from sale of securities				99,000
Net unrealized gains recorded in accumulated other comprehensive income				$ 100,000
Available for sale securities pledged as collateral	$ 24,500,000		$ 24,500,000		$ 34,700,000
Minimum | U.S. Government and its Agencies
Debt Securities, Available-for-sale [Line Items]
Holdings of securities as percentage of share holders' equity	10.00%		10.00%

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Loans - Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	$ 5,800,991	$ 5,151,541
Allowance for credit losses	(71,584)	(72,557)
Loans receivable, net	5,729,407	5,078,984
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	649,589	400,546
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	4,503,534	4,102,411
Allowance for credit losses	(45,524)	(48,890)
Real Estate | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	1,044,287	970,134
Allowance for credit losses	(7,758)	(6,579)
Real Estate | Hospitality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	662,438	717,692
Allowance for credit losses	(15,417)	(22,670)
Real Estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	2,044,878	1,919,033
Real Estate | Total commercial property loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	3,751,603	3,606,859
Allowance for credit losses	(38,625)	(44,314)
Real Estate | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	102,342	95,006
Allowance for credit losses	(4,034)	(4,078)
Real Estate | Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	649,589	400,546
Allowance for credit losses	(2,865)	(498)
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	732,033	561,831
Allowance for credit losses	(14,876)	(12,418)
Equipment Financing Agreements
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	565,424	487,299
Allowance for credit losses	$ (11,184)	$ (11,249)

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Loans - Loans (Detail) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	$ 5,800,991	$ 5,151,541
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	4,503,534	4,102,411
Real Estate | Home Equity Loans and Lines - Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	2,400	3,900
Real Estate | Personal Loans - Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	$ 5,600	$ 6,000

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Loans - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($) Loan	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) Loan	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) Loan	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest on loans	$ 15,356,000		$ 15,356,000		$ 11,976,000
Loans	5,800,991,000		5,800,991,000		5,151,541,000
Loans held for sale, at the lower of cost or fair value	10,044,000	$ 17,881,000	10,044,000	$ 17,881,000	13,342,000	$ 18,528,000	$ 36,030,000	$ 8,568,000
Gains on sale of second draw PPP loans			7,545,000	13,475,000
Proceeds from sale of second draw PPP loans	43,685,000	62,469,000	115,199,000	225,223,000
Interest income on nonaccrual loans	0	0	0	0
TDR loans receivable	$ 1,600,000		$ 1,600,000		$ 2,900,000
Loans default payment past due period			30 days
Number of loans defaulted | Loan	0		0		0
Loans Pledged to Secure Advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 2,360,000,000		$ 2,360,000,000		$ 2,300,000,000
Payment Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,000,000.0		1,000,000.0		3,000,000.0
SBA Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at the lower of cost or fair value	10,000,000.0		10,000,000.0		13,300,000
PPP Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gains on sale of second draw PPP loans		300,000		3,000,000.0
Proceeds from sale of second draw PPP loans		$ 14,600,000		$ 132,700,000
Loans | Accrued Interest
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest on loans	$ 13,200,000		$ 13,200,000		$ 10,100,000

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Loans - Activity for Loans Held for Sale (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	$ 18,528	$ 36,030	$ 13,342	$ 8,568
Originations and transfers	35,211	43,765	111,915	233,642
Sales	(43,685)	(62,469)	(115,199)	(225,223)
Principal paydowns and amortization	(10)	555	(14)	894
Balance at end of period	10,044	17,881	10,044	17,881
Real Estate
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	10,976	13,092	6,954	8,042
Originations and transfers	23,013	28,537	72,708	71,005
Sales	(27,493)	(27,513)	(73,166)	(64,930)
Principal paydowns and amortization	(6)	(4)	(6)	(5)
Balance at end of period	6,490	14,112	6,490	14,112
Commercial and Industrial
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	7,552	22,938	6,388	526
Originations and transfers	12,198	15,228	39,207	162,637
Sales	(16,192)	(34,956)	(42,033)	(160,293)
Principal paydowns and amortization	(4)	559	(8)	899
Balance at end of period	$ 3,554	$ 3,769	$ 3,554	$ 3,769

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Loans - Allowance for Credit Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance			$ 72,557
Ending balance	$ 71,584		71,584
Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	73,067	$ 83,372	72,557	$ 90,426
Less loans charged off	2,080	977	3,521	5,934
Recoveries on loans receivable previously charged off	(970)	(1,842)	(2,428)	(2,893)
Provision (recovery) for credit losses	(373)	(7,624)	120	(10,772)
Ending balance	71,584	76,613	71,584	76,613
Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance			48,890
Ending balance	45,524		45,524
Real Estate | Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	46,112	63,029	48,890	51,876
Less loans charged off	1,356		1,886	1,491
Recoveries on loans receivable previously charged off	(373)	(1,162)	(632)	(1,597)
Provision (recovery) for credit losses	395	(8,128)	(2,112)	4,081
Ending balance	45,524	56,063	45,524	56,063
Commercial and Industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance			12,418
Ending balance	14,876		14,876
Commercial and Industrial | Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	14,275	8,059	12,418	21,410
Less loans charged off	8	186	87	550
Recoveries on loans receivable previously charged off	(228)	(330)	(679)	(602)
Provision (recovery) for credit losses	381	507	1,866	(12,752)
Ending balance	14,876	8,710	14,876	8,710
Equipment Financing Agreements
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance			11,249
Ending balance	11,184		11,184
Equipment Financing Agreements | Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	12,680	12,284	11,249	17,140
Less loans charged off	716	791	1,548	3,893
Recoveries on loans receivable previously charged off	(369)	(350)	(1,117)	(694)
Provision (recovery) for credit losses	(1,149)	(3)	366	(2,101)
Ending balance	$ 11,184	$ 11,840	$ 11,184	$ 11,840

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Loans - Allowance for Credit Losses by Portfolio Segment as a Percentage of Recorded Total Allowance for Credit Losses and Aggregate Recorded Investment of Loans Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 71,584	$ 72,557
Percentage of Total Allowance	100.00%	100.00%
Loans	$ 5,800,991	$ 5,151,541
Percentage of Total Loans	100.00%	100.00%
Residential
Financing Receivable Allowance For Credit Losses [Line Items]
Loans	$ 649,589	$ 400,546
Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 45,524	$ 48,890
Percentage of Total Allowance	63.60%	67.40%
Loans	$ 4,503,534	$ 4,102,411
Percentage of Total Loans	77.70%	79.60%
Real Estate | Retail
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 7,758	$ 6,579
Percentage of Total Allowance	10.80%	9.10%
Loans	$ 1,044,287	$ 970,134
Percentage of Total Loans	18.00%	18.80%
Real Estate | Hospitality
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 15,417	$ 22,670
Percentage of Total Allowance	21.50%	31.20%
Loans	$ 662,438	$ 717,692
Percentage of Total Loans	11.40%	13.90%
Real Estate | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 15,450	$ 15,065
Percentage of Total Allowance	21.70%	20.80%
Loans	$ 2,044,878	$ 1,919,033
Percentage of Total Loans	35.30%	37.30%
Real Estate | Total commercial property loans
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 38,625	$ 44,314
Percentage of Total Allowance	54.00%	61.10%
Loans	$ 3,751,603	$ 3,606,859
Percentage of Total Loans	64.70%	70.00%
Real Estate | Construction
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 4,034	$ 4,078
Percentage of Total Allowance	5.60%	5.60%
Loans	$ 102,342	$ 95,006
Percentage of Total Loans	1.80%	1.80%
Real Estate | Residential
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 2,865	$ 498
Percentage of Total Allowance	4.00%	0.70%
Loans	$ 649,589	$ 400,546
Percentage of Total Loans	11.20%	7.80%
Commercial and Industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 14,876	$ 12,418
Percentage of Total Allowance	20.80%	17.10%
Loans	$ 732,033	$ 561,831
Percentage of Total Loans	12.60%	10.90%
Equipment Financing Agreements
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 11,184	$ 11,249
Percentage of Total Allowance	15.60%	15.50%
Loans	$ 565,424	$ 487,299
Percentage of Total Loans	9.70%	9.50%

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Loans - Summary of Amortized Cost Basis of Collateral Dependent Loans By Class of Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	$ 5,051	$ 3,398
Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	5,051	3,398
Real Estate | Retail
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	3,531	1,917
Real Estate | Other
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	608	499
Real Estate | Total commercial property loans
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	4,139	2,416
Real Estate | Residential
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	$ 912	$ 982

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Loans - Loans by Vintage Year and Risk Rating (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
2022	$ 1,903,807	$ 1,977,169
2021	1,482,885	878,738
2020	760,125	658,209
2019	544,558	509,016
2018	393,279	384,572
Prior	438,362	540,906
Revolving Loans Amortized Cost Basis	277,975	202,931
Total loans receivable	5,800,991	5,151,541
Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,902,833	1,976,453
2021	1,458,169	858,611
2020	741,192	626,894
2019	514,304	489,366
2018	356,916	372,804
Prior	409,075	473,544
Revolving Loans Amortized Cost Basis	247,811	197,942
Total loans receivable	5,630,300	4,995,614
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	23,113	19,143
2020	18,497	21,582
2019	20,673	930
2018	21,469	7,472
Prior	9,677	44,469
Revolving Loans Amortized Cost Basis	29,523	1,698
Total loans receivable	122,952	95,294
Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2022	974	716
2021	1,603	984
2020	436	9,733
2019	9,581	18,720
2018	14,894	4,296
Prior	19,610	22,893
Revolving Loans Amortized Cost Basis	641	3,291
Total loans receivable	47,739	60,633
Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans receivable	649,589	400,546
Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,386,502	1,471,953
2021	1,177,092	742,945
2020	660,917	501,540
2019	435,589	444,278
2018	356,910	362,582
Prior	420,885	527,616
Revolving Loans Amortized Cost Basis	65,639	51,497
Total loans receivable	4,503,534	4,102,411
Real Estate | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,385,636	1,471,953
2021	1,163,588	724,076
2020	642,420	488,497
2019	422,614	426,101
2018	321,458	351,247
Prior	392,333	466,140
Revolving Loans Amortized Cost Basis	63,588	49,794
Total loans receivable	4,391,637	3,977,808
Real Estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	13,504	18,869
2020	18,497	7,593
2019	7,159	930
2018	21,469	7,405
Prior	9,570	39,667
Revolving Loans Amortized Cost Basis	2,051	1,703
Total loans receivable	72,250	76,167
Real Estate | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2022	866
2020		5,450
2019	5,816	17,247
2018	13,983	3,930
Prior	18,982	21,809
Total loans receivable	39,647	48,436
Real Estate | Total commercial property loans
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,036,603	1,203,197
2021	937,545	725,339
2020	647,428	501,293
2019	435,353	423,535
2018	356,173	287,644
Prior	279,688	422,735
Revolving Loans Amortized Cost Basis	58,813	43,116
Total loans receivable	3,751,603	3,606,859
Real Estate | Total commercial property loans | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,035,752	1,203,197
2021	924,041	706,470
2020	629,274	488,250
2019	422,378	406,288
2018	320,721	277,680
Prior	252,048	384,064
Revolving Loans Amortized Cost Basis	57,112	41,413
Total loans receivable	3,641,326	3,507,362
Real Estate | Total commercial property loans | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	13,504	18,869
2020	18,154	7,593
2019	7,159
2018	21,469	6,999
Prior	9,570	16,879
Revolving Loans Amortized Cost Basis	1,701	1,703
Total loans receivable	71,557	52,043
Real Estate | Total commercial property loans | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2022	851
2020		5,450
2019	5,816	17,247
2018	13,983	2,965
Prior	18,070	21,792
Total loans receivable	38,720	47,454
Real Estate | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2022	39,090	73,808
2021	63,252	631
Prior		20,567
Total loans receivable	102,342	95,006
Real Estate | Construction | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2022	39,090	73,808
2021	63,252	631
Total loans receivable	102,342	74,439
Real Estate | Construction | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Prior		20,567
Total loans receivable		20,567
Real Estate | Residential
Financing Receivable, Credit Quality Indicator [Line Items]
2022	310,809	194,948
2021	176,295	16,975
2020	13,489	247
2019	236	20,743
2018	737	74,938
Prior	141,197	84,314
Revolving Loans Amortized Cost Basis	6,826	8,381
Total loans receivable	649,589	400,546
Real Estate | Residential | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2022	310,794	194,948
2021	176,295	16,975
2020	13,146	247
2019	236	19,813
2018	737	73,567
Prior	140,285	82,076
Revolving Loans Amortized Cost Basis	6,476	8,381
Total loans receivable	647,969	396,007
Real Estate | Residential | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2020	343
2019		930
2018		406
Prior		2,221
Revolving Loans Amortized Cost Basis	350
Total loans receivable	693	3,557
Real Estate | Residential | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2022	15
2018		965
Prior	912	17
Total loans receivable	927	982
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2022	283,314	264,762
2021	120,494	55,412
2020	45,390	51,634
2019	44,280	15,925
2018	11,753	10,960
Prior	14,466	11,704
Revolving Loans Amortized Cost Basis	212,336	151,434
Total loans receivable	732,033	561,831
Commercial and Industrial | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2022	283,314	264,762
2021	110,850	55,135
2020	45,219	36,937
2019	29,583	15,780
2018	11,656	10,874
Prior	13,864	6,016
Revolving Loans Amortized Cost Basis	184,223	148,148
Total loans receivable	678,709	537,652
Commercial and Industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	9,609	274
2020		13,989
2019	13,514
2018		67
Prior	107	4,802
Revolving Loans Amortized Cost Basis	27,472	(5)
Total loans receivable	50,702	19,127
Commercial and Industrial | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2021	35	3
2020	171	708
2019	1,183	145
2018	97	19
Prior	495	886
Revolving Loans Amortized Cost Basis	641	3,291
Total loans receivable	2,622	5,052
Equipment Financing Agreements
Financing Receivable, Credit Quality Indicator [Line Items]
2022	233,991	240,454
2021	185,299	80,381
2020	53,818	105,035
2019	64,689	48,813
2018	24,616	11,030
Prior	3,011	1,586
Total loans receivable	565,424	487,299
Equipment Financing Agreements | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2022	233,883	239,738
2021	183,731	79,400
2020	53,553	101,460
2019	62,107	47,485
2018	23,802	10,683
Prior	2,878	1,388
Total loans receivable	559,954	480,154
Equipment Financing Agreements | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2022	108	716
2021	1,568	981
2020	265	3,575
2019	2,582	1,328
2018	814	347
Prior	133	198
Total loans receivable	$ 5,470	$ 7,145

XML

Loans - Loans by Vintage Year and Payment Performance (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
2022	$ 1,903,807	$ 1,977,169
2021	1,482,885	878,738
2020	760,125	658,209
2019	544,558	509,016
2018	393,279	384,572
Prior	438,362	540,906
Revolving Loans Amortized Cost Basis	277,975	202,931
Total loans receivable	5,800,991	5,151,541
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,903,684	1,976,453
2021	1,481,282	877,754
2020	759,689	653,926
2019	541,976	507,667
2018	388,934	382,548
Prior	435,860	536,902
Revolving Loans Amortized Cost Basis	277,975	202,931
Total loans receivable	5,789,400	5,138,181
Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2022	123	716
2021	1,603	984
2020	436	4,283
2019	2,582	1,349
2018	4,345	2,024
Prior	2,502	4,004
Total loans receivable	11,591	13,360
Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans receivable	649,589	400,546
Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,386,502	1,471,953
2021	1,177,092	742,945
2020	660,917	501,540
2019	435,589	444,278
2018	356,910	362,582
Prior	420,885	527,616
Revolving Loans Amortized Cost Basis	65,639	51,497
Total loans receivable	4,503,534	4,102,411
Real Estate | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,386,487	1,471,953
2021	1,177,092	742,945
2020	660,917	501,540
2019	435,589	444,258
2018	353,379	360,908
Prior	418,719	524,083
Revolving Loans Amortized Cost Basis	65,639	51,497
Total loans receivable	4,497,822	4,097,184
Real Estate | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2022	15
2019		20
2018	3,531	1,674
Prior	2,166	3,533
Total loans receivable	5,712	5,227
Real Estate | Total commercial property loans
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,036,603	1,203,197
2021	937,545	725,339
2020	647,428	501,293
2019	435,353	423,535
2018	356,173	287,644
Prior	279,688	422,735
Revolving Loans Amortized Cost Basis	58,813	43,116
Total loans receivable	3,751,603	3,606,859
Real Estate | Total commercial property loans | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1,036,603	1,203,197
2021	937,545	725,339
2020	647,428	501,293
2019	435,353	423,515
2018	352,642	286,935
Prior	278,434	419,464
Revolving Loans Amortized Cost Basis	58,813	43,116
Total loans receivable	3,746,818	3,602,859
Real Estate | Total commercial property loans | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2019		20
2018	3,531	709
Prior	1,254	3,271
Total loans receivable	4,785	4,000
Real Estate | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2022	39,090	73,808
2021	63,252	631
Prior		20,567
Total loans receivable	102,342	95,006
Real Estate | Construction | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2022	39,090	73,808
2021	63,252	631
Prior		20,567
Total loans receivable	102,342	95,006
Real Estate | Residential
Financing Receivable, Credit Quality Indicator [Line Items]
2022	310,809	194,948
2021	176,295	16,975
2020	13,489	247
2019	236	20,743
2018	737	74,938
Prior	141,197	84,314
Revolving Loans Amortized Cost Basis	6,826	8,381
Total loans receivable	649,589	400,546
Real Estate | Residential | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2022	310,794	194,948
2021	176,295	16,975
2020	13,489	247
2019	236	20,743
2018	737	73,973
Prior	140,285	84,052
Revolving Loans Amortized Cost Basis	6,826	8,381
Total loans receivable	648,662	399,319
Real Estate | Residential | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2022	15
2018		965
Prior	912	262
Total loans receivable	927	1,227
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2022	283,314	264,762
2021	120,494	55,412
2020	45,390	51,634
2019	44,280	15,925
2018	11,753	10,960
Prior	14,466	11,704
Revolving Loans Amortized Cost Basis	212,336	151,434
Total loans receivable	732,033	561,831
Commercial and Industrial | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2022	283,314	264,762
2021	120,459	55,409
2020	45,219	50,926
2019	44,280	15,925
2018	11,753	10,956
Prior	14,263	11,431
Revolving Loans Amortized Cost Basis	212,336	151,434
Total loans receivable	731,624	560,843
Commercial and Industrial | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2021	35	3
2020	171	708
2018		4
Prior	203	273
Total loans receivable	409	988
Equipment Financing Agreements
Financing Receivable, Credit Quality Indicator [Line Items]
2022	233,991	240,454
2021	185,299	80,381
2020	53,818	105,035
2019	64,689	48,813
2018	24,616	11,030
Prior	3,011	1,586
Total loans receivable	565,424	487,299
Equipment Financing Agreements | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2022	233,883	239,738
2021	183,731	79,400
2020	53,553	101,460
2019	62,107	47,484
2018	23,802	10,684
Prior	2,878	1,388
Total loans receivable	559,954	480,154
Equipment Financing Agreements | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2022	108	716
2021	1,568	981
2020	265	3,575
2019	2,582	1,329
2018	814	346
Prior	133	198
Total loans receivable	$ 5,470	$ 7,145

XML

Loans - Analysis of Past Due Loans, Including Loans on Nonaccrual Status, Disaggregated by Loan Class, Non-PCI (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Past due loans receivable	$ 11,918	$ 10,716
Loans receivable	5,800,991	5,151,541
Residential
Financing Receivable, Past Due [Line Items]
Past due loans receivable	414	1,876
Loans receivable	649,589	400,546
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	8,888	5,038
30-59 Days Past Due | Residential
Financing Receivable, Past Due [Line Items]
Past due loans receivable	404	570
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,165	3,442
60-89 Days Past Due | Residential
Financing Receivable, Past Due [Line Items]
Past due loans receivable		750
90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,865	2,236
90 Days or More Past Due | Residential
Financing Receivable, Past Due [Line Items]
Past due loans receivable	10	556
Current
Financing Receivable, Past Due [Line Items]
Loans receivable	5,789,073	5,140,825
Current | Residential
Financing Receivable, Past Due [Line Items]
Loans receivable	649,175	398,670
Real Estate
Financing Receivable, Past Due [Line Items]
Past due loans receivable	5,419	3,714
Loans receivable	4,503,534	4,102,411
Real Estate | Retail
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,531
Loans receivable	1,044,287	970,134
Real Estate | Hospitality
Financing Receivable, Past Due [Line Items]
Past due loans receivable	991	556
Loans receivable	662,438	717,692
Real Estate | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	483	1,282
Loans receivable	2,044,878	1,919,033
Real Estate | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	5,005	1,838
Loans receivable	3,751,603	3,606,859
Real Estate | Construction
Financing Receivable, Past Due [Line Items]
Loans receivable	102,342	95,006
Real Estate | Residential
Financing Receivable, Past Due [Line Items]
Loans receivable	649,589	400,546
Real Estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	5,140	1,218
Real Estate | 30-59 Days Past Due | Retail
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,531
Real Estate | 30-59 Days Past Due | Hospitality
Financing Receivable, Past Due [Line Items]
Past due loans receivable	991	556
Real Estate | 30-59 Days Past Due | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	214	92
Real Estate | 30-59 Days Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	4,736	648
Real Estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable		1,441
Real Estate | 60-89 Days Past Due | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable		691
Real Estate | 60-89 Days Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable		691
Real Estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	279	1,055
Real Estate | 90 Days or More Past Due | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	269	499
Real Estate | 90 Days or More Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	269	499
Real Estate | Current
Financing Receivable, Past Due [Line Items]
Loans receivable	4,498,115	4,098,697
Real Estate | Current | Retail
Financing Receivable, Past Due [Line Items]
Loans receivable	1,040,756	970,134
Real Estate | Current | Hospitality
Financing Receivable, Past Due [Line Items]
Loans receivable	661,447	717,136
Real Estate | Current | Other
Financing Receivable, Past Due [Line Items]
Loans receivable	2,044,395	1,917,751
Real Estate | Current | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Loans receivable	3,746,598	3,605,021
Real Estate | Current | Construction
Financing Receivable, Past Due [Line Items]
Loans receivable	102,342	95,006
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Past due loans receivable	117	65
Loans receivable	732,033	561,831
Commercial and Industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	82	56
Commercial and Industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	35	9
Commercial and Industrial | Current
Financing Receivable, Past Due [Line Items]
Loans receivable	731,916	561,766
Equipment Financing Agreements
Financing Receivable, Past Due [Line Items]
Past due loans receivable	6,382	6,937
Loans receivable	565,424	487,299
Equipment Financing Agreements | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,666	3,764
Equipment Financing Agreements | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,130	1,992
Equipment Financing Agreements | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,586	1,181
Equipment Financing Agreements | Current
Financing Receivable, Past Due [Line Items]
Loans receivable	$ 559,042	$ 480,362

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Loans - Schedule of Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due 90 Days and Still Accruing (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	$ 5,724	$ 5,825
Nonaccrual Loans With Allowance for Credit Losses	5,867	7,535
Total Nonperforming Loans	11,591	13,360
Residential
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses		982
Nonaccrual Loans With Allowance for Credit Losses		245
Total Nonperforming Loans		1,227
Real Estate
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	5,356	4,645
Nonaccrual Loans With Allowance for Credit Losses	356	582
Total Nonperforming Loans	5,712	5,227
Real Estate | Retail
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	3,530	1,918
Total Nonperforming Loans	3,530	1,918
Real Estate | Other
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	914	1,745
Nonaccrual Loans With Allowance for Credit Losses	341	337
Total Nonperforming Loans	1,255	2,082
Real Estate | Total commercial property loans
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	4,444	3,663
Nonaccrual Loans With Allowance for Credit Losses	341	337
Total Nonperforming Loans	4,785	4,000
Real Estate | Residential
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	912
Nonaccrual Loans With Allowance for Credit Losses	15
Total Nonperforming Loans	927
Equipment Financing Agreements
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	368	1,172
Nonaccrual Loans With Allowance for Credit Losses	5,102	5,973
Total Nonperforming Loans	5,470	7,145
Commercial and Industrial
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses		8
Nonaccrual Loans With Allowance for Credit Losses	409	980
Total Nonperforming Loans	$ 409	$ 988

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Loans - Non-Performing Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Receivables [Abstract]
Nonaccrual loans	$ 11,591	$ 13,360
Total Nonperforming Loans	11,591	13,360
Other real estate owned ("OREO")	792	675
Total nonperforming assets	$ 12,383	$ 14,035

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Loans - Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Nonaccrual TDRs
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	$ 473	$ 2,888
Nonaccrual TDRs | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	362	2,764
Nonaccrual TDRs | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	111	124
Nonaccrual TDRs | Deferral of Principal
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	274	346
Nonaccrual TDRs | Deferral of Principal | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	274	346
Nonaccrual TDRs | Deferral of Principal and Interest
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	111	2,170
Nonaccrual TDRs | Deferral of Principal and Interest | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend		2,046
Nonaccrual TDRs | Deferral of Principal and Interest | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	111	124
Nonaccrual TDRs | Reduction of Principal and Interest
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	88	372
Nonaccrual TDRs | Reduction of Principal and Interest | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	88	$ 372
Accrual TDRs
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	1,144
Accrual TDRs | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	1,144
Accrual TDRs | Deferral of Principal and Interest
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	1,144
Accrual TDRs | Deferral of Principal and Interest | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	$ 1,144

XML

Loans - Summary of Loans by Class Modified as TDRs (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) Loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | Loan	1
Pre- Modification Outstanding Recorded Investment	$ 92
Post- Modification Outstanding Recorded Investment	$ 88
Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | Loan	1
Pre- Modification Outstanding Recorded Investment	$ 92
Post- Modification Outstanding Recorded Investment	$ 88

XML

Servicing Assets - Summary of Changes in Servicing Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Transfers And Servicing [Abstract]
Balance at beginning of period	$ 7,354	$ 6,199	$ 7,080	$ 6,212
Addition related to sale of SBA loans	828	1,171	2,377	2,328
Amortization	(758)	(532)	(2,033)	(1,702)
Balance at end of period	$ 7,424	$ 6,838	$ 7,424	$ 6,838

XML

Servicing Assets - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Serviced loans sold to unaffiliated parties	$ 505,200,000		$ 505,200,000		$ 473,500,000
Servicing fee income	$ 1,300,000	$ 1,100,000	$ 3,700,000	$ 3,400,000
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Noninterest Income Other Operating Income	Noninterest Income Other Operating Income	Noninterest Income Other Operating Income	Noninterest Income Other Operating Income
Amortization expense	$ 758,000	$ 532,000	$ 2,000,000.0	$ 1,700,000
Fair value of servicing rights	$ 7,700,000		$ 7,700,000		$ 8,100,000
Minimum
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Discount rates ranging			15.60%		10.40%
Prepayment speeds			11.00%		10.20%
Maximum
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Discount rates ranging			18.30%		16.70%
Prepayment speeds			17.00%		12.80%

XML

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes for continuing operations	$ 10,993,000	$ 10,656,000	$ 29,690,000	$ 27,042,000
Effective income tax rate	28.80%	28.60%	28.90%	29.30%
Valuation allowance	$ 1,600,000		$ 1,600,000		$ 1,600,000
Income tax assets	$ 66,217,000		66,217,000		$ 44,060,000
Change in uncertain tax positions			$ 0

XML

Goodwill and Other Intangibles - Additional Information (Detail) - USD ($)			9 Months Ended	12 Months Ended
	Oct. 27, 2016	Aug. 31, 2014	Sep. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Impairment of goodwill and other intangible assets				$ 0
Goodwill and other intangible assets triggering event			No triggering event has occurred subsequent to December 31, 2021 that would require a reassessment of goodwill and other intangible assets.
CBI Merger
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 11,000,000.0
CBI Merger | Third-party originators intangible
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 500,000
CBI Merger | Core deposit intangible
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 2,200,000

XML

Goodwill and Other Intangibles - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (2,460)	$ (2,332)
Goodwill	11,031	11,031
Gross carrying amount	13,727	13,727
Net carrying amount	$ 11,267	11,395
Core deposit intangible
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period	10 years
Gross carrying amount, excluding goodwill	$ 2,213	2,213
Accumulated amortization	(1,998)	(1,900)
Net carrying amount, excluding goodwill	$ 215	313
Third-party originators intangible
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period	7 years
Gross carrying amount, excluding goodwill	$ 483	483
Accumulated amortization	(461)	(432)
Net carrying amount, excluding goodwill	$ 22	$ 51

XML

Deposits - Additional Information (Detail) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Accrued interest payable on deposits	$ 2,200,000	$ 1,200,000
Total deposits reclassified to loans due to overdrafts	700,000	277,000
Time Deposits of $250,000 or More
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Uninsured time deposits at or exceeding the FDIC insurance limit of $250,000	$ 258,100,000	$ 173,500,000

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Deposits - Scheduled Maturities of Time Deposits (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Restricted Cash And Cash Equivalents Items [Line Items]
2022	$ 179,021
2023	996,773	$ 879,299
2024	65,396	42,086
2025	3,207	60,854
2024		2,184
2026 and thereafter	3,280
2026 and thereafter		2,765
Total	1,247,677	987,188
Time Deposits of $250,000 or More
Restricted Cash And Cash Equivalents Items [Line Items]
2022	73,828
2023	246,457	206,478
2024		1,522
2025	265
2024		265
2026 and thereafter	263
2026 and thereafter		262
Total	320,813	208,527
Other Time Deposits
Restricted Cash And Cash Equivalents Items [Line Items]
2022	105,193
2023	750,316	672,821
2024	65,396	40,564
2025	2,942	60,854
2024		1,919
2026 and thereafter	3,017
2026 and thereafter		2,503
Total	$ 926,864	$ 778,661

XML

Borrowings and Subordinated Debentures - Additional Information (Detail) - USD ($)			1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 20, 2021	Mar. 21, 2017	Dec. 31, 2005	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2014
Debt Instrument [Line Items]
Overnight advances from federal home loan banks				$ 0		$ 0		$ 0
Advances from the FHLB				$ 100,000,000.0		$ 100,000,000.0		$ 137,500,000
Weighted average interest rate of outstanding advances (percent)				0.87%		0.87%		1.05%
Interest expense on borrowings				$ 349,000	$ 409,000	$ 1,056,000	$ 1,332,000
Pledged loans receivable, carrying value				2,360,000,000		2,360,000,000		$ 2,300,000,000
Remaining available borrowing capacity				1,390,000,000		1,390,000,000		1,610,000,000
FHLB statutory lending limit				1,860,000,000		1,860,000,000		1,800,000,000
Loans pledged with FRB				24,500,000		24,500,000		34,700,000
Borrowing capacity through Fed Discount Window				23,000,000.0		23,000,000.0		32,800,000
Subordinated debentures issued				136,800,000		136,800,000		224,100,000
Debt instrument, maturity date	Sep. 01, 2031	Mar. 30, 2027
2021 Notes
Debt Instrument [Line Items]
Subordinated debentures issued	$ 110,000,000.0
Fixed interest rate	3.75%
Amortization of debt issuance costs	$ 2,100,000
Debt issuance costs, net				$ 108,100,000		$ 108,100,000		108,000,000.0
2027 Notes
Debt Instrument [Line Items]
Subordinated debentures issued		$ 100,000,000.0
Fixed interest rate		5.45%
Percentage of redemption price of outstanding principal amount.				100.00%		100.00%
Unamortized debt issuance cost				$ 1,100,000		$ 1,100,000
Debt outstanding, net of issuance cost				0		$ 0		86,200,000
Subordinated debentures | Central Bancorp, Inc
Debt Instrument [Line Items]
Subordinated debentures issued			$ 26,000,000.0
Debt instrument, maturity date						Mar. 15, 2036
Fixed interest rate			6.26%
Debt outstanding, net of issuance cost				21,100,000		$ 21,100,000		20,800,000
Unpaid principal balance									$ 26,800,000
Estimated fair value									18,500,000
Debt instrument discount				5,700,000		$ 5,700,000		$ 6,000,000.0	$ 8,300,000
Frequency of interest payment						quarterly
Term for the initial fixed interest rate						5 years
Optional interest payment deferral period (not to exceed)						5 years
Variable interest rate basis						three-month LIBOR plus 140 basis points
Amortization of subordinated debentures				$ 104,000	$ 102,000	$ 308,000	$ 300,000
Benchmark Rate | 2021 Notes
Debt Instrument [Line Items]
Basis spread	3.10%
3-month London Interbank Offered Rate (LIBOR) | 2027 Notes
Debt Instrument [Line Items]
Basis spread		3.315%
3-month London Interbank Offered Rate (LIBOR) | Subordinated debentures | Central Bancorp, Inc
Debt Instrument [Line Items]
Basis spread			140.00%

XML

Borrowings and Subordinated Debentures - Schedule of Borrowings (Detail) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Outstanding Balance
Overnight advances	$ 0	$ 0
Outstanding advances	$ 100,000,000.0	$ 137,500,000
Weighted Average Rate
Outstanding advances (percent)	0.87%	1.05%
FHLB of San Francisco
Outstanding Balance
Advances due within 12 months	$ 50,000,000	$ 50,000,000
Advances due over 12 months through 24 months	37,500,000	50,000,000
Advances due over 24 months through 36 months	12,500,000	37,500,000
Outstanding advances	$ 100,000,000	$ 137,500,000
Weighted Average Rate
Overnight advances (percent)	0.00%	0.00%
Advances due within 12 months (percent)	0.97%	1.62%
Advances due over 12 months through 24 months (percent)	0.40%	0.97%
Advances due over 24 months through 36 months (percent)	1.90%	0.40%
Outstanding advances (percent)	0.87%	1.05%

XML

Borrowings and Subordinated Debentures - Summary of Financial Data Pertaining to Federal Home Loan Bank Advances (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Federal Home Loan Banks [Abstract]
Weighted-average interest rate at end of period	0.87%	1.05%
Weighted-average interest rate during the period	1.07%	1.17%
Average balance of FHLB advances	$ 131,337,000	$ 145,277,000
Maximum amount outstanding at any month-end	$ 215,000,000	$ 162,500,000

XML

Earnings per Share - Reconciliation of Components Used to Derive Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Net income	$ 27,169	$ 26,565	$ 72,915	$ 65,346
Less: income allocated to unvested restricted stock	163	138	408	948
Income allocated to common shares	$ 27,006	$ 26,427	$ 72,507	$ 64,398
Weighted-average shares for basic EPS	30,314,439	30,474,391	30,289,068	30,222,978
Basic EPS	$ 0.89	$ 0.87	$ 2.39	$ 2.13
Effect of dilutive stock options and unvested performance stock units	82,323	77,805	80,470	75,575
Income allocated to common shares	$ 27,006	$ 26,427	$ 72,507	$ 64,398
Weighted-average shares for diluted EPS	30,396,762	30,552,196	30,369,538	30,298,553
Diluted EPS	$ 0.89	$ 0.86	$ 2.39	$ 2.13

XML

Earnings per Share - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
2021 Equity Compensation Plan | Performance Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based compensation arrangement by share-based payment award, additional shares issued			38,036
Total fair value of vested shares			$ 955,000
Share based compensation arrangement by share based payment award equity instruments other than options, grant date			Mar. 23, 2022
2013 Equity Compensation Plan | Performance Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based compensation arrangement by share-based payment award, additional shares issued				42,626
Total fair value of vested shares				$ 784,000
Share based compensation arrangement by share based payment award equity instruments other than options, grant date				Mar. 24, 2021
Stock options, expiration term from date of grant			3 years
Share-based compensation arrangement by share based payment award, performance stock units aggregate grant fair value			$ 2,000
Share-based compensation arrangement by share based payment award, performance stock units outstanding	104,599	66,563	104,599	66,563
Stock option awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted EPS (shares)	0	0

XML

Regulatory Matters - Additional Information (Detail)	Sep. 30, 2022	Dec. 31, 2021	Jan. 01, 2019
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Minimum ratio of qualifying total capital to risk-weighted assets	8.0
Minimum ratio of Tier 1 capital to risk-weighted assets	6.0
Leverage ratio	4.0
Minimum ratio of qualifying total capital to risk-weighted assets for well capitalized	10.0
Minimum ratio of Tier 1 capital to average assets for well capitalized	8.0
Capital conservation buffer (percent)	5.55%	5.93%	2.50%
Hanmi Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Minimum ratio of qualifying total capital to risk-weighted assets	8.00	8.00
Minimum ratio of Tier 1 capital to risk-weighted assets	6.00	6.00
Leverage ratio	4.00	4.00
Minimum ratio of qualifying total capital to risk-weighted assets for well capitalized	10.00	10.00
Minimum ratio of Tier 1 capital to average assets for well capitalized	8.00	8.00
Capital conservation buffer (percent)	5.76%	6.70%
Depository Institutions
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage ratio	5.0

XML

Regulatory Matters - Capital Ratios of Hanmi Financial and Bank (Detail) $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	8.0
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	6.0
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets	4.0
Minimum to Be Categorized as Well Capitalized Ratio, Total capital to risk-weighted assets	10.0
Minimum to Be Categorized as Well Capitalized Ratio, Tier 1 capital to risk-weighted assets	8.0
Hanmi Financial
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Actual Capital, Total capital to risk-weighted assets	$ 879,761	$ 912,527
Actual Capital, Tier 1 capital to risk-weighted assets	706,670	657,250
Actual Capital, Common equity Tier 1 capital to risk-weighted assets	685,531	636,419
Actual Capital, Tier 1 capital to average assets	$ 706,670	$ 657,250
Actual Capital Ratio, Total capital to risk-weighted assets	14.38	16.57
Actual Capital Ratio, Tier 1 capital to risk-weighted assets	11.55	11.93
Actual Capital Ratio, Common equity Tier 1 capital to risk-weighted assets	11.21	11.55
Actual Capital Ratio, Tier 1 capital to average assets	9.99	9.63
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets	$ 489,404	$ 440,639
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets	367,053	330,479
Minimum Regulatory Requirement Capital, Common equity Tier 1 capital to risk-weighted assets	275,290	247,859
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets	$ 283,039	$ 273,133
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	8.00	8.00
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	6.00	6.00
Minimum Regulatory Requirement Ratio for Common equity Tier 1 capital to risk-weighted assets	4.50%	4.50%
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets	4.00	4.00
Hanmi Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Actual Capital, Total capital to risk-weighted assets	$ 840,236	$ 809,279
Actual Capital, Tier 1 capital to risk-weighted assets	777,145	748,177
Actual Capital, Common equity Tier 1 capital to risk-weighted assets	777,145	748,177
Actual Capital, Tier 1 capital to average assets	$ 777,145	$ 748,177
Actual Capital Ratio, Total capital to risk-weighted assets	13.76	14.70
Actual Capital Ratio, Tier 1 capital to risk-weighted assets	12.73	13.59
Actual Capital Ratio, Common equity Tier 1 capital to risk-weighted assets	12.73	13.59
Actual Capital Ratio, Tier 1 capital to average assets	11.02	10.96
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets	$ 488,565	$ 440,493
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets	366,424	330,369
Minimum Regulatory Requirement Capital, Common equity Tier 1 capital to risk-weighted assets	274,818	247,777
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets	$ 282,187	$ 273,101
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	8.00	8.00
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	6.00	6.00
Minimum Regulatory Requirement Ratio for Common equity Tier 1 capital to risk-weighted assets	4.50%	4.50%
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets	4.00	4.00
Minimum to Be Categorized as Well Capitalized Capital, Total capital to risk-weighted assets	$ 610,706	$ 550,616
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to risk-weighted assets	488,565	440,493
Minimum to Be Categorized as Well Capitalized Capital, Common equity Tier 1 capital to risk-weighted average	396,959	357,900
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to average assets	$ 352,734	$ 341,376
Minimum to Be Categorized as Well Capitalized Ratio, Total capital to risk-weighted assets	10.00	10.00
Minimum to Be Categorized as Well Capitalized Ratio, Tier 1 capital to risk-weighted assets	8.00	8.00
Minimum to Be Categorized as Well Capitalized Ratio, Common equity Tier 1 capital to risk-weighted assets	6.50%	6.50%
Minimum to Be Categorized as Well Capitalized Ratio, Tier 1 capital to average assets	5.00	5.00

XML

Fair Value Measurements - Additional Information (Detail)	Sep. 30, 2022 USD ($)
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unpaid principal balance of Non-accrual Non-PCI loans individually evaluated for amount of impairment	$ 250,000
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unpaid principal balance of Non-accrual Non-PCI loans and leases reviewed collectively	$ 250,000

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 830,151	$ 910,790
Derivative financial instruments, Assets	7,900	1,400
Derivative financial instruments, Liabilities	7,700	1,400
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	33,160	15,397
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	522,370	607,505
Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	86,406	93,604
Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	127,634	115,896
Total U.S. government agency and sponsored agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	736,410	817,005
Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	60,581	78,388
Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	830,151	910,790
Derivative financial instruments, Assets	7,724	1,379
Derivative financial instruments, Liabilities	7,891	1,360
Recurring Basis | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	33,160	15,397
Recurring Basis | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	522,370	607,505
Recurring Basis | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	86,406	93,604
Recurring Basis | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	127,634	115,896
Recurring Basis | Total U.S. government agency and sponsored agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	736,410	817,005
Recurring Basis | Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	60,581	78,388
Recurring Basis | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	33,160	15,397
Derivative financial instruments, Assets	0	0
Derivative financial instruments, Liabilities	0	0
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	33,160	15,397
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Total U.S. government agency and sponsored agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	796,991	895,393
Derivative financial instruments, Assets	7,724	1,379
Derivative financial instruments, Liabilities	7,891	1,360
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	522,370	607,505
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	86,406	93,604
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	127,634	115,896
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Total U.S. government agency and sponsored agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	736,410	817,005
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	60,581	78,388
Recurring Basis | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Derivative financial instruments, Assets	0	0
Derivative financial instruments, Liabilities	0	0
Recurring Basis | Significant Unobservable Inputs | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Unobservable Inputs | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Unobservable Inputs | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Unobservable Inputs | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Unobservable Inputs | Total U.S. government agency and sponsored agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Unobservable Inputs | Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 0	$ 0

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) - Non-recurring Basis - USD ($) $ in Thousands	Sep. 30, 2022		Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	$ 5,051	[1]	$ 3,398	[2]
Other real estate owned	792		675
Repossessed personal property	224		8
Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	0	[1]	0	[2]
Other real estate owned	0		0
Repossessed personal property	0		0
Significant Observable Inputs with No Active Market with Identical Characteristics
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	0	[1]	0	[2]
Other real estate owned	0		0
Repossessed personal property	0		0
Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	5,051	[1]	3,398	[2]
Other real estate owned	792		675
Repossessed personal property	$ 224		$ 8

[1] Consisted of real estate loans of $5.1 million.

[2] Consisted of real estate loans of $3.4 million.

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable	$ 5,729,407	$ 5,078,984
Non-recurring Basis | Real estate loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable	$ 5,100	$ 3,400

XML

Fair Value Measurements - Quantitative Information about Level 3 Fair Value Assumptions for Assets Measured at Fair Value on Non-Recurring Basis (Detail) - Significant Unobservable Inputs - Non-recurring Basis $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 5,051	$ 3,398
Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	5,051	3,398
Retail | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 3,531	$ 1,917
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Retail | Minimum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.005	(0.028)
Retail | Maximum [Member] | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.025	0.023
Retail | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.016	(0.006)
Other | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 608	$ 499
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Other | Minimum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.035)	(0.020)
Other | Maximum [Member] | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.020	0.020
Other | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.011)	0
Residential | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 912	$ 982
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Residential | Minimum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.019)	(0.019)
Residential | Maximum [Member] | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.010	0.008
Residential | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.002	0.003
Repossessed Personal Property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 224	$ 8
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 792	$ 675
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Other Real Estate Owned | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.020)	(0.020)
Other Real Estate Owned | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.020	(0.005)
Other Real Estate Owned | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.003)	(0.012)

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Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financial assets:
Cash and due from banks	$ 275,159	$ 608,965
Securities available for sale	830,151	910,790
Loans held for sale	10,044	13,342
Loans receivable, net of allowance for credit losses	5,729,407	5,078,984
Accrued interest receivable	15,356	11,976
Financial liabilities:
Noninterest-bearing deposits	2,771,498	2,574,517
Interest-bearing deposits	3,429,878	3,211,752
Borrowings and subordinated debentures	229,261	352,506
Accrued interest payable	2,180	1,161
Quoted Prices in Active Markets for Identical Assets | Fair Value
Financial assets:
Cash and due from banks	275,159	608,965
Securities available for sale	33,160	15,397
Loans held for sale	0	0
Loans receivable, net of allowance for credit losses	0	0
Accrued interest receivable	15,356	11,976
Financial liabilities:
Noninterest-bearing deposits	0	0
Interest-bearing deposits	0	0
Borrowings and subordinated debentures	0	0
Accrued interest payable	2,180	1,161
Significant Observable Inputs with No Active Market with Identical Characteristics | Fair Value
Financial assets:
Cash and due from banks	0	0
Securities available for sale	796,991	895,393
Loans held for sale	10,562	14,723
Loans receivable, net of allowance for credit losses	0	0
Accrued interest receivable	0	0
Financial liabilities:
Noninterest-bearing deposits	2,771,498	2,574,517
Interest-bearing deposits	0	0
Borrowings and subordinated debentures	95,861	137,198
Accrued interest payable	0	0
Significant Unobservable Inputs | Fair Value
Financial assets:
Cash and due from banks	0	0
Securities available for sale	0	0
Loans held for sale	0	0
Loans receivable, net of allowance for credit losses	5,640,118	5,072,282
Accrued interest receivable	0	0
Financial liabilities:
Noninterest-bearing deposits	0	0
Interest-bearing deposits	3,433,676	3,211,708
Borrowings and subordinated debentures	122,747	213,179
Accrued interest payable	$ 0	$ 0

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Off-Balance Sheet Commitments - Distribution of Total Loan Commitments (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Total commitments	$ 829,462	$ 715,022
Unused Commitments to Extend Credit
Loss Contingencies [Line Items]
Total commitments	746,354	626,474
Standby letters of credit
Loss Contingencies [Line Items]
Total commitments	63,597	49,287
Commercial letters of credit
Loss Contingencies [Line Items]
Total commitments	$ 19,511	$ 39,261

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Off-Balance Sheet Commitments - Allowance for Credit Losses Related to Off-Balance Sheet Items (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Risks And Uncertainties [Abstract]
Balance at beginning of period	$ 2,313	$ 3,643	$ 2,586	$ 2,792
Provision expense (recovery) for credit losses	936	1,208	663	2,059
Balance at end of period	$ 3,249	$ 4,851	$ 3,249	$ 4,851

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Leases - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Right-of-use assets	$ 42,000		$ 42,000		$ 46,300
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid expenses and other assets		Prepaid expenses and other assets		Prepaid expenses and other assets
Total lease liabilities - Operating leases	$ 45,775		$ 45,775		$ 49,700
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent		us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent		us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
Weighted average remaining lease term	7 years 3 months		7 years 3 months		7 years 10 months 6 days
Weighted average discount rate (percent)	2.38%		2.38%		2.38%
Net lease expense	$ 2,100	$ 2,100	$ 6,200	$ 6,200
Operating lease costs	2,000		5,900	6,100
Cash paid for amounts included in the measurement of Company's operating lease liabilities	$ 1,900	$ 1,900	$ 5,900	$ 6,000
Minimum
Lessee, Lease, Description [Line Items]
Operating lease remaining term	1 year		1 year
Finance lease remaining term	1 year		1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Operating lease remaining term	13 years		13 years
Finance lease remaining term	13 years		13 years
Operating lease extension term	5 years		5 years
Finance lease extension term	5 years		5 years

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Leases - Future Minimum Rental Commitments Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Leases [Abstract]
2022	$ 8,076
2023	7,465
2024	7,061
2025	5,881
2026	5,181
Thereafter	16,305
Remaining lease commitments	49,969
Interest	(4,194)
Present value of lease liability	$ 45,775	$ 49,700

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Liquidity - Additional Information (Detail) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Total borrowing capacity based on pledged collateral	$ 1,860,000,000	$ 1,800,000,000
Amount available from borrowing source	23,000,000.0	32,800,000
Borrowings	0
Line of credit	115,000,000.0
Hanmi Bank
Line of Credit Facility [Line Items]
Cash on deposit with bank subsidiary	14,900,000	94,900,000
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	100,000,000.0	137,500,000
Broker deposits	$ 93,300,000	141,800,000
Percentage of borrowings from FHLB (up to)	30.00%
Total borrowing capacity based on pledged collateral	$ 1,610,000,000	1,840,000,000
Borrowing capacity available based on pledged collateral	1,390,000,000	$ 1,610,000,000
Amount available from borrowing source	23,000,000.0
Carrying value for loans pledged by Bank	28,600,000
Borrowings	0
Maximum borrowing capacity of line of credit	100,000,000.0
U.S. Treasury securities | Hanmi Bank
Line of Credit Facility [Line Items]
Debt securities fair value	$ 11,800,000

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Derivatives and Hedging Activities - Schedule of Fair Value of Derivative Financial Instruments as well as their Location on Balance Sheet (Detail) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Derivatives Fair Value [Line Items]
Total derivative assets	$ 7,891,000	$ 1,379,000
Total derivative liabilities	7,724,000	1,360,000
Not Designated as Hedging Instrument | Interest Rate Products
Derivatives Fair Value [Line Items]
Notional Amount	61,589,000	61,968,000
Total derivative assets	7,891,000	1,379,000
Total derivative liabilities	$ 7,724,000	$ 1,360,000

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Derivatives and Hedging Activities - Effect of Derivative Financial Instruments that are Not Designated as Hedging Instruments on Income Statement (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative Instruments Gain Loss [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 35	$ 7	$ 148	$ 92
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Noninterest Income Other Operating Income	Noninterest Income Other Operating Income	Noninterest Income Other Operating Income	Noninterest Income Other Operating Income
Interest Rate Products
Derivative Instruments Gain Loss [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 35	$ 7	$ 148	$ 92

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Derivatives and Hedging Activities - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Derivative [Line Items]
Fair value of derivatives in net asset position	$ 7,900,000		$ 7,900,000		$ 1,400,000
Amount of collateral posted	0		0		0
Net asset and liability position	167,000		167,000		19,000
Derivative fair value of liabilities	7,700,000		7,700,000		1,400,000
Derivative fair value of assets	7,900,000		7,900,000		$ 1,400,000
Other Income
Derivative [Line Items]
Fee income	$ 0	$ 0	$ 0	$ 0

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Derivatives and Hedging Activities - Summary of Gross Presentation, Effects of Offsetting and a Net Presentation of Derivatives (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Derivatives Fair Value [Line Items]
Gross Amounts of Recognized Assets, Offsetting of Derivative Assets	$ 7,891	$ 1,379
Net Amounts of Assets presented in the Consolidated Balance Sheets, Offsetting of Derivative Assets	7,891	1,379
Gross Amounts of Recognized Liabilities, Offsetting of Derivative Liabilities	7,724	1,360
Net Amounts of Liabilities presented in the Consolidated Balance Sheets, Offsetting of Derivative Liabilities	7,724	1,360
Derivative Liabilities, Financial Instruments
Derivatives Fair Value [Line Items]
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Liabilities, Net Amount	7,724	1,360
Derivative Assets, Financial Instruments
Derivatives Fair Value [Line Items]
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets, Net Amount	7,724	1,360
Derivative Assets, Cash Collateral Received
Derivatives Fair Value [Line Items]
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets, Net Amount	$ 167	$ (19)