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 March 31, 2024

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 April 30, 2024, there were 30,387,062 outstanding shares of the Registrant’s Common Stock.

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

Three Months Ended March 31, 2024

Table of Contents

	Part I – Financial Information
Item 1.	Financial Statements	3
	Consolidated Balance Sheets at March 31, 2024 (unaudited) and December 31, 2023	3
	Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 (unaudited)	4
	Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2024 and 2023 (unaudited)	6
	Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited)	7
	Notes to Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	55
Item 4.	Controls and Procedures	55
	Part II – Other Information
Item 1.	Legal Proceedings	56
Item 1A.	Risk Factors	56
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	56
Item 3.	Defaults Upon Senior Securities	56
Item 4.	Mine Safety Disclosures	56
Item 5.	Other Information	56
Item 6.	Exhibits	57
Signatures		58

2

Part I — Financial Information

Item 1. Financial Statements

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)

	March 31,			December 31,
	2024			2023
	(Unaudited)
Assets
Cash and due from banks	$	256,038		$	302,324
Securities available for sale, at fair value (amortized cost of $978,580 and $967,031 as of March 31, 2024 and December 31, 2023, respectively)		872,190			865,739
Loans held for sale, at the lower of cost or fair value		3,999			12,013
Loans receivable, net of allowance for credit losses of $68,270 and $69,462 as of March 31, 2024 and December 31, 2023, respectively		6,109,570			6,112,972
Accrued interest receivable		23,032			23,371
Premises and equipment, net		21,952			21,959
Customers' liability on acceptances		161			625
Servicing assets		6,890			7,070
Goodwill and other intangible assets, net		11,074			11,099
Federal Home Loan Bank ("FHLB") stock, at cost		16,385			16,385
Income tax assets		35,863			35,226
Bank-owned life insurance		56,639			56,335
Prepaid expenses and other assets		98,253			105,223
Total assets	$	7,512,046		$	7,570,341
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	1,933,060		$	2,003,596
Interest-bearing		4,443,000			4,276,978
Total deposits		6,376,060			6,280,574
Accrued interest payable		38,007			39,306
Bank's liability on acceptances		161			625
Borrowings		172,500			325,000
Subordinated debentures ($136,800 and $136,800 face amount less unamortized discount and debt issuance costs of $6,635 and $6,788 as of March 31, 2024 and December 31, 2023, respectively)		130,165			130,012
Accrued expenses and other liabilities		92,053			92,933
Total liabilities		6,808,946			6,868,450
Stockholders’ equity:
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of March 31, 2024 and December 31, 2023		—			—
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 33,957,284 shares (30,276,358 shares outstanding) and 33,918,035 shares (30,368,655 shares outstanding) as of March 31, 2024 and December 31, 2023, respectively		34			34
Additional paid-in capital		587,687			586,912
Accumulated other comprehensive loss, net of tax benefit of $31,401 and $29,058 as of March 31, 2024 and December 31, 2023, respectively		(76,890	)		(71,928	)
Retained earnings		326,526			319,048
Less treasury stock; 3,680,926 shares and 3,549,380 shares as of March 31, 2024 and December 31, 2023, respectively		(134,257	)		(132,175	)
Total stockholders’ equity		703,100			701,891
Total liabilities and stockholders’ equity	$	7,512,046		$	7,570,341

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
	March 31,
	2024		2023
Interest and dividend income:
Interest and fees on loans receivable	$	91,674	$	80,923
Interest on securities		4,955		4,025
Dividends on FHLB stock		361		289
Interest on deposits in other banks		2,604		2,066
Total interest and dividend income		99,594		87,303
Interest expense:
Interest on deposits		45,638		25,498
Interest on borrowings		1,655		2,369
Interest on subordinated debentures		1,646		1,583
Total interest expense		48,939		29,450
Net interest income before credit loss expense		50,655		57,853
Credit loss expense		227		2,133
Net interest income after credit loss expense		50,428		55,720
Noninterest income:
Service charges on deposit accounts		2,450		2,579
Trade finance and other service charges and fees		1,414		1,258
Gain on sale of Small Business Administration ("SBA") loans		1,482		1,869
Other operating income		2,387		2,630
Total noninterest income		7,733		8,336
Noninterest expense:
Salaries and employee benefits		21,585		20,610
Occupancy and equipment		4,537		4,412
Data processing		3,551		3,253
Professional fees		1,893		1,335
Supplies and communications		601		676
Advertising and promotion		907		833
Other operating expenses		3,371		1,672
Total noninterest expense		36,445		32,791
Income before tax		21,716		31,265
Income tax expense		6,552		9,274
Net income	$	15,164	$	21,991
Basic earnings per share	$	0.50	$	0.72
Diluted earnings per share	$	0.50	$	0.72
Weighted-average shares outstanding:
Basic		30,119,646		30,347,325
Diluted		30,119,646		30,430,745

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
	March 31,
	2024			2023
Net income	$	15,164		$	21,991
Other comprehensive income (loss), net of tax:
Unrealized gain (loss):
Unrealized holding gain (loss) on available for sale securities		(5,098	)		13,607
Unrealized gain (loss) on cash flow hedges		(2,207	)		—
Unrealized gain (loss)		(7,305	)		13,607
Income tax benefit (expense) related to other comprehensive income items		2,343			(3,681	)
Other comprehensive income (loss), net of tax		(4,962	)		9,926
Total comprehensive income	$	10,202		$	31,917

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 March 31, 2024 and 2023

(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		Loss			Earnings			at Cost			Equity
Balance at January 1, 2023		33,708,234		(3,222,613	)		30,485,621		$	33	$	583,410	$	(88,985	)	$	269,542		$	(126,485	)	$	637,515
Stock options exercised		50,000		(35,273	)		14,727			—		822		—			—			(1,003	)		(181	)
Issuance of awards pursuant to equity incentive plans, net of forfeitures		69,567		—			69,567			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		652		—			—			—			652
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(11,392	)		(11,392	)		—		—		—			—			(115	)		(115	)
Repurchase of common stock		—		(3,236	)		(3,236	)		—		—		—			—			—			—
Cash dividends paid (common stock, $0.25/share)		—		—			—			—		—		—			(7,623	)		—			(7,623	)
Net income		—		—			—			—		—		—			21,991			—			21,991
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		9,926			—			—			9,926
Balance at March 31, 2023		33,827,801		(3,272,514	)		30,555,287		$	33	$	584,884	$	(79,059	)	$	283,910		$	(127,603	)	$	662,165
Balance at January 1, 2024		33,918,035		(3,549,380	)		30,368,655		$	34	$	586,912	$	(71,928	)	$	319,048		$	(132,175	)	$	701,891
Issuance of awards pursuant to equity incentive plans, net of forfeitures		39,249		—			39,249			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		775		—			—			—			775
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(31,546	)		(31,546	)		—		—		—			—			(490	)		(490	)
Repurchase of common stock		—		(100,000	)		(100,000	)		—		—		—			—			(1,592	)		(1,592	)
Cash dividends paid (common stock, $0.25/share)		—		—			—			—		—		—			(7,686	)		—			(7,686	)
Net income		—		—			—			—		—		—			15,164			—			15,164
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		(3,394	)		—			—			(3,394	)
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—		—			—			—		—		(1,568	)		—			—			(1,568	)
Balance at March 31, 2024		33,957,284		(3,680,926	)		30,276,358		$	34	$	587,687	$	(76,890	)	$	326,526		$	(134,257	)	$	703,100

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

6

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

	Three Months Ended March 31,
	2024			2023
Cash flows from operating activities:
Net income	$	15,164		$	21,991
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,604			1,742
Amortization of servicing assets - net		694			634
Share-based compensation expense		775			652
Credit loss expense		227			2,133
Gain on sales of SBA loans		(1,482	)		(1,869	)
Origination of SBA loans held for sale		(17,632	)		(25,316	)
Proceeds from sales of SBA loans		26,555			30,954
Gain on sales of mortgage loans		(443	)		—
Change in bank-owned life insurance		(304	)		(270	)
Change in prepaid expenses and other assets		5,564			(3,000	)
Change in income tax assets		1,707			8,585
Valuation adjustment on servicing assets		—			(384	)
Change in accrued interest payable and other liabilities		(2,446	)		276
Net cash provided by operating activities		29,983			36,128
Cash flows from investing activities:
Purchases of securities available for sale		(38,424	)		(29,504	)
Proceeds from matured, called and repayment of securities		26,233			17,499
Purchases of loans receivable		(10,198	)		—
Proceeds from sales of mortgage loans		30,427			—
Purchases of premises and equipment		(794	)		(617	)
Change in loans receivable, excluding purchases		(16,729	)		(14,773	)
Net cash used in investing activities		(9,485	)		(27,395	)
Cash flows from financing activities:
Change in deposits		95,486			32,966
Change in borrowings		(152,500	)		—
Proceeds from exercise of stock options		—			822
Cash paid for employee vested shares surrendered due to employee tax liability		(490	)		(1,118	)
Repurchase of common stock		(1,594	)		—
Cash dividends paid		(7,686	)		(7,623	)
Net cash provided by (used in) financing activities		(66,784	)		25,047
Net increase (decrease) in cash and due from banks		(46,286	)		33,780
Cash and due from banks at beginning of year		302,324			352,421
Cash and due from banks at end of period	$	256,038		$	386,201
Supplemental disclosures of cash flow information:
Interest paid	$	50,238		$	16,730
Income taxes paid	$	175		$	334
Non-cash activities:
Income tax benefit (expense) related to other comprehensive income items	$	2,343		$	(3,681	)
Change in right-of-use asset obtained in exchange for lease liability	$	(1,873	)	$	(145	)

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

7

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 period ended March 31, 2024. 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. Operating results for the three-month period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ended December 31, 2024 or for any other period. The interim information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 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.

Recently Issued Accounting Standards Not Yet Effective

Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures: In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09 to enhance the transparency and usefulness of income tax disclosures primarily related to income tax rate reconciliation and income taxes information. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-09 is not expected to have material effect on the Company’s operating results or financial condition.

ASU 2023-07, Segment Reporting (Topic 280): Segment Reporting: In November 2023, FASB issued ASU 2023-07 to provide updates that improve reportable segment disclosure requirements, primarily through enhanced disclosures on significant segment expenses. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-07 is not expected to have material effect on the Company’s operating results or financial condition.

8

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)
March 31, 2024
U.S. Treasury securities	$	88,407	$	21	$	(1,124	)	$	87,304
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		489,714		226		(65,267	)		424,673
Mortgage-backed securities - commercial		59,603		—		(12,383	)		47,220
Collateralized mortgage obligations		131,756		107		(10,128	)		121,735
Debt securities		132,236		—		(7,420	)		124,816
Total U.S. government agency and sponsored agency obligations		813,309		333		(95,198	)		718,444
Municipal bonds-tax exempt		76,864		—		(10,422	)		66,442
Total securities available for sale	$	978,580	$	354	$	(106,744	)	$	872,190
December 31, 2023
U.S. Treasury securities	$	86,355	$	173	$	(1,040	)	$	85,488
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		504,544		481		(62,697	)		442,328
Mortgage-backed securities - commercial		59,973		—		(11,982	)		47,991
Collateralized mortgage obligations		106,823		237		(9,649	)		97,411
Debt securities		132,215		—		(7,590	)		124,625
Total U.S. government agency and sponsored agency obligations		803,555		718		(91,918	)		712,355
Municipal bonds-tax exempt		77,121		—		(9,225	)		67,896
Total securities available for sale	$	967,031	$	891	$	(102,183	)	$	865,739

The amortized cost and estimated fair value of securities as of March 31, 2024 and December 31, 2023, 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.

	March 31, 2024				December 31, 2023
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	76,125	$	75,255	$	62,521	$	61,828
Over one year through five years		156,571		148,475		169,176		160,983
Over five years through ten years		90,497		82,423		83,720		77,608
Over ten years		655,387		566,037		651,614		565,320
Total	$	978,580	$	872,190	$	967,031	$	865,739

9

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 March 31, 2024 or December 31, 2023, 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)
March 31, 2024
U.S. Treasury securities	$	(159	)	$	43,837		13	$	(965	)	$	31,489		11	$	(1,124	)	$	75,326		24
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(88	)		16,344		8		(65,179	)		395,536		118		(65,267	)		411,880		126
Mortgage-backed securities - commercial		—			—		—		(12,383	)		47,220		15		(12,383	)		47,220		15
Collateralized mortgage obligations		(268	)		38,790		10		(9,860	)		63,898		25		(10,128	)		102,688		35
Debt securities		—			—		—		(7,420	)		124,816		26		(7,420	)		124,816		26
Total U.S. government agency and sponsored agency obligations		(356	)		55,134		18		(94,842	)		631,470		184		(95,198	)		686,604		202
Municipal bonds-tax exempt		—			—		—		(10,422	)		66,442		19		(10,422	)		66,442		19
Total	$	(515	)	$	98,971		31	$	(106,229	)	$	729,401		214	$	(106,744	)	$	828,372		245
December 31, 2023
U.S. Treasury securities	$	(57	)	$	21,024		7	$	(983	)	$	32,449		11	$	(1,040	)	$	53,473		18
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(11	)		2,324		5		(62,686	)		411,417		118		(62,697	)		413,741		123
Mortgage-backed securities - commercial		—			—		—		(11,982	)		47,991		15		(11,982	)		47,991		15
Collateralized mortgage obligations		(38	)		7,074		2		(9,611	)		63,610		24		(9,649	)		70,684		26
Debt securities		—			—		—		(7,590	)		124,625		26		(7,590	)		124,625		26
Total U.S. government agency and sponsored agency obligations		(49	)		9,398		7		(91,869	)		647,643		183		(91,918	)		657,041		190
Municipal bonds-tax exempt		—			—		—		(9,225	)		67,896		19		(9,225	)		67,896		19
Total	$	(106	)	$	30,422		14	$	(102,077	)	$	747,988		213	$	(102,183	)	$	778,410		227

The Company evaluates its available for sale securities portfolio for impairment on a quarterly basis. The Company did not recognize unrealized losses in income because it has the ability and the intent to hold and does not expect to be required to sell these securities until the recovery of their cost basis. The quarterly impairment 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 March 31, 2024, the Company determined that no credit losses were 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.

Securities available for sale with market values of $23.8 million and $24.8 million as of March 31, 2024 and December 31, 2023, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.

At March 31, 2024, 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% of shareholders’ equity.

10

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:

	March 31, 2024			December 31, 2023
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,091,059		$	1,107,360
Hospitality		740,160			740,519
Office		575,847			574,981
Other (1)		1,367,395			1,366,534
Total commercial property loans		3,774,461			3,789,394
Construction		104,216			100,345
Residential (2)		970,362			962,661
Total real estate loans		4,849,039			4,852,400
Commercial and industrial loans (3)		774,851			747,819
Equipment financing agreements		553,950			582,215
Loans receivable		6,177,840			6,182,434
Allowance for credit losses		(68,270	)		(69,462	)
Loans receivable, net	$	6,109,570		$	6,112,972

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

(2)Includes $1.5 million and $1.9 million of home equity loans and lines, and $5.3 million and $4.5 million of personal loans at March 31, 2024 and December 31, 2023, respectively.

(3)At March 31, 2024 and December 31, 2023, Paycheck Protection Program loans were $0.1 million and $0.2 million, respectively.

Accrued interest on loans was $19.5 million and $19.8 million at March 31, 2024 and December 31, 2023, respectively.

At March 31, 2024 and December 31, 2023, loans with carrying values of $2.45 billion and $2.36 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 following periods:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
Three months ended March 31, 2024
Balance at beginning of period	$	8,792		$	3,221		$	12,013
Originations and transfers		9,614			8,018			17,632
Sales		(16,900	)		(8,687	)		(25,587	)
Principal paydowns and amortization		(52	)		(7	)		(59	)
Balance at end of period	$	1,454		$	2,545		$	3,999
Three months ended March 31, 2023
Balance at beginning of period	$	3,775		$	4,268		$	8,043
Originations and transfers		16,387			8,929			25,316
Sales		(19,781	)		(9,918	)		(29,699	)
Principal paydowns and amortization		(2	)		(6	)		(8	)
Balance at end of period	$	379		$	3,273		$	3,652

11

The following table presents loans purchased by portfolio segment for the following periods:

	Three Months Ended
	March 31,
	2024		2023
	(in thousands)
Commercial real estate	$	274	$	—
Commercial and industrial		9,924		—
Residential real estate		—		—
Total	$	10,198	$	—

Allowance for Credit Losses

The following table details the information on the allowance for credit losses by portfolio segment for the following periods:

	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
Three months ended March 31, 2024
Balance at beginning of period	$	45,499		$	10,257		$	13,706			69,462
Charge-offs		—			(155	)		(1,968	)		(2,123	)
Recoveries		46			58			423			527
Credit loss expense (recovery)		(2,961	)		1,676			1,689			404
Ending balance	$	42,584		$	11,836		$	13,850		$	68,270
Three months ended March 31, 2023
Balance at beginning of period	$	44,026		$	15,267		$	12,230		$	71,523
Charge-offs		(412	)		(210	)		(1,616	)		(2,238	)
Recoveries		68			235			480			783
Credit loss expense (recovery)		(151	)		41			2,291			2,181
Ending balance	$	43,531		$	15,333		$	13,385		$	72,249

The table below presents the allowance for credit losses by portfolio segment as a percentage of the total allowance for credit losses and loans by portfolio segment as a percentage of the aggregate investment of loans receivable as of:

	March 31, 2024										December 31, 2023
	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	$	10,095		14.8	%	$	1,091,059		17.7	%	$	10,264		14.8	%	$	1,107,360		17.9	%
Hospitality		11,668		17.1			740,160		12.0			15,534		22.4			740,519		12.0
Office		3,740		5.5			575,847		9.3			3,024		4.4			574,981		9.3
Other		8,270		12.1			1,367,395		22.1			8,663		12.4			1,366,534		22.1
Total commercial property loans		33,773		49.5			3,774,461		61.1			37,485		54.0			3,789,394		61.3
Construction		2,611		3.8			104,216		1.7			2,756		4.0			100,345		1.6
Residential		6,200		9.1			970,362		15.7			5,258		7.5			962,661		15.6
Total real estate loans		42,584		62.4			4,849,039		78.5			45,499		65.5			4,852,400		78.5
Commercial and industrial loans		11,836		17.3			774,851		12.5			10,257		14.8			747,819		12.1
Equipment financing agreements		13,850		20.3			553,950		9.0			13,706		19.7			582,215		9.4
Total	$	68,270		100.0	%	$	6,177,840		100.0	%	$	69,462		100.0	%	$	6,182,434		100.0	%

12

The following table represents the amortized cost basis of collateral-dependent loans by class of loans, for which repayment is expected to be obtained through the sale of the underlying collateral, as of:

	March 31, 2024		December 31, 2023
	(in thousands)
Real estate loans:
Commercial property
Retail	$	—	$	1,530
Hospitality		299		338
Other		2,147		305
Total commercial property loans		2,446		2,173
Residential		—		1
Total real estate loans		2,446		2,174
Commercial and industrial loans		3,927		5,178
Total	$	6,373	$	7,352

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 1 to 8) for each loan in our portfolio. Third-party loan reviews are conducted annually on a sample 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 (1-4), 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.

13

Loans by Vintage Year and Risk Rating

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2024		2023		2022		2021		2020			Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
March 31, 2024
Real estate loans:
Commercial property
Risk Rating							`
Pass / Pass-Watch	$	109,310	$	614,621	$	978,263	$	847,463	$	567,561		$	578,221		$	46,941		$	3,742,380
Special Mention		4,399		—		3,979		3,252		5,628			967			1,409			19,634
Classified		1,573		—		1,197		—		—			9,677			—			12,447
Total commercial property		115,282		614,621		983,439		850,715		573,189			588,865			48,350			3,774,461
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Construction
Risk Rating
Pass / Pass-Watch		49,902		26,003		—		—		—			—			—			75,905
Special Mention		—		—		—		28,311		—			—			—			28,311
Classified		—		—		—		—		—			—			—			—
Total construction		49,902		26,003		—		28,311		—			—			—			104,216
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Residential
Risk Rating
Pass / Pass-Watch		52,132		256,261		369,965		156,338		12,510			117,129			5,777			970,112
Special Mention		—		—		—		—		—			—			250			250
Classified		—		—		—		—		—			—			—			—
Total residential		52,132		256,261		369,965		156,338		12,510			117,129			6,027			970,362
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Total real estate loans
Risk Rating
Pass / Pass-Watch		211,344		896,885		1,348,228		1,003,801		580,071			695,350			52,718			4,788,397
Special Mention		4,399		—		3,979		31,563		5,628			967			1,659			48,195
Classified		1,573		—		1,197		—		—			9,677			—			12,447
Total real estate loans		217,316		896,885		1,353,404		1,035,364		585,699			705,994			54,377			4,849,039
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		97,014		98,018		161,227		76,197		17,368			19,615			287,010			756,449
Special Mention		403		—		13,595		—		99			24			—			14,121
Classified		—		—		96		—		—			258			3,927			4,281
Total commercial and industrial loans		97,417		98,018		174,918		76,197		17,467			19,897			290,937			774,851
YTD gross charge-offs		—		—		126		—		—			29			—			155
YTD net charge-offs (recoveries)		—		—		126		—		—			5			(34	)		97
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		35,518		198,213		190,684		88,306		19,607			14,681			—			547,009
Special Mention		—		—		—		—		—			—			—			—
Classified		—		846		3,613		1,729		216			537			—			6,941
Total equipment financing agreements		35,518		199,059		194,297		90,035		19,823			15,218			—			553,950
YTD gross charge-offs		—		19		1,364		400		170			15			—			1,968
YTD net charge-offs (recoveries)		—		19		1,207		310		164			(155	)		—			1,545
Total loans receivable:
Risk Rating
Pass / Pass-Watch		343,876		1,193,116		1,700,139		1,168,304		617,046			729,646			339,728			6,091,855
Special Mention		4,802		—		17,574		31,563		5,727			991			1,659			62,316
Classified		1,573		846		4,906		1,729		216			10,472			3,927			23,669
Total loans receivable	$	350,251	$	1,193,962	$	1,722,619	$	1,201,596	$	622,989		$	741,109		$	345,314		$	6,177,840
YTD gross charge-offs		—		19		1,490		400		170			44			—			2,123
YTD net charge-offs (recoveries)		—		19		1,333		310		159			(191	)		(34	)		1,596

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

14

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2023		2022		2021			2020		2019		Prior			Revolving Loans Amortized Cost Basis			Total
December 31, 2023
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	683,819	$	986,822	$	858,821		$	572,950	$	378,067	$	238,400		$	30,236		$	3,749,115
Special Mention		4,400		3,997		3,271			5,670		711		2,310			1,406			21,765
Classified		3,065		1,080		4,899			—		5,578		3,892			—			18,514
Total commercial property		691,284		991,899		866,991			578,620		384,356		244,602			31,642			3,789,394
YTD gross charge-offs		—		—		—			411		—		216			—			627
YTD net charge-offs (recoveries)		—		—		—			403		—		(81	)		—			322
Construction
Risk Rating
Pass / Pass-Watch		72,039		—		—			—		—		—			—			72,039
Special Mention		—		—		28,306			—		—		—			—			28,306
Classified		—		—		—			—		—		—			—			—
Total construction		72,039		—		28,306			—		—		—			—			100,345
YTD gross charge-offs		—		—		—			—		—		—			—			—
YTD net charge-offs (recoveries)		—		—		—			—		—		—			—			—
Residential
Risk Rating
Pass / Pass-Watch		290,196		375,712		158,618			12,656		217		119,736			5,025			962,160
Special Mention		—		—		—			—		—		—			500			500
Classified		—		—		—			—		—		1			—			1
Total residential		290,196		375,712		158,618			12,656		217		119,737			5,525			962,661
YTD gross charge-offs		—		—		—			—		—		—			—			—
YTD net charge-offs (recoveries)		—		—		—			—		—		(7	)		—			(7	)
Total real estate loans
Risk Rating
Pass / Pass-Watch		1,046,054		1,362,534		1,017,439			585,606		378,284		358,136			35,261			4,783,314
Special Mention		4,400		3,997		31,577			5,670		711		2,310			1,906			50,571
Classified		3,065		1,080		4,899			—		5,578		3,893			—			18,515
Total real estate loans		1,053,519		1,367,611		1,053,915			591,276		384,573		364,339			37,167			4,852,400
YTD gross charge-offs		—		—		—			411		—		216			—			627
YTD net charge-offs (recoveries)		—		—		—			403		—		(88	)		—			315
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		177,864		169,209		84,198			31,348		9,971		12,920			242,044			727,554
Special Mention		—		14,578		—			102		—		65			(1	)		14,744
Classified		329		—		—			—		79		174			4,939			5,521
Total commercial and industrial loans		178,193		183,787		84,198			31,450		10,050		13,159			246,982			747,819
YTD gross charge-offs		—		17		—			—		110		410			6,120			6,657
YTD net charge-offs (recoveries)		—		5		(7	)		—		101		(6,621	)		6,090			(432	)
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		215,670		211,228		101,622			24,340		18,832		3,192			—			574,884
Special Mention		—		—		—			—		—		—			—			—
Classified		392		4,171		1,945			365		401		57			—			7,331
Total equipment financing agreements		216,062		215,399		103,567			24,705		19,233		3,249			—			582,215
YTD gross charge-offs		178		3,944		3,267			386		799		232			—			8,806
YTD net charge-offs (recoveries)		178		3,744		2,858			244		250		(114	)		—			7,160
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,439,588		1,742,971		1,203,259			641,294		407,087		374,248			277,305			6,085,752
Special Mention		4,400		18,575		31,577			5,772		711		2,375			1,905			65,315
Classified		3,786		5,251		6,844			365		6,058		4,124			4,939			31,367
Total loans receivable	$	1,447,774	$	1,766,797	$	1,241,680		$	647,431	$	413,856	$	380,747		$	284,149		$	6,182,434
YTD gross charge-offs		178		3,961		3,267			797		909		858			6,120			16,090
YTD net charge-offs (recoveries)		178		3,749		2,851			647		351		(6,823	)		6,090			7,043

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

15

Loans by Vintage Year and Payment Performance

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2024		2023		2022		2021		2020			Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
March 31, 2024
Real estate loans:
Commercial property
Payment performance
Performing	$	113,709	$	614,621	$	983,314	$	850,715	$	573,189		$	587,509		$	48,350		$	3,771,407
Nonperforming		1,573		—		125		—		—			1,356			—			3,054
Total commercial property		115,282		614,621		983,439		850,715		573,189			588,865			48,350			3,774,461
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Construction
Payment performance
Performing		49,902		26,003		—		28,311		—			—			—			104,216
Nonperforming		—		—		—		—		—			—			—			—
Total construction		49,902		26,003		—		28,311		—			—			—			104,216
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Residential
Payment performance
Performing		52,132		256,261		369,965		156,338		12,510			117,129			6,027			970,362
Nonperforming		—		—		—		—		—			—			—			—
Total residential		52,132		256,261		369,965		156,338		12,510			117,129			6,027			970,362
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Total real estate loans
Payment performance
Performing		215,743		896,885		1,353,279		1,035,364		585,699			704,638			54,377			4,845,985
Nonperforming		1,573		—		125		—		—			1,356			—			3,054
Total real estate loans		217,316		896,885		1,353,404		1,035,364		585,699			705,994			54,377			4,849,039
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Commercial and industrial loans:
Payment performance
Performing		97,417		98,018		174,904		76,197		17,467			19,809			287,010			770,822
Nonperforming		—		—		14		—		—			88			3,927			4,029
Total commercial and industrial loans		97,417		98,018		174,918		76,197		17,467			19,897			290,937			774,851
YTD gross charge-offs		—		—		126		—		—			29			—			155
YTD net charge-offs (recoveries)		—		—		126		—		—			5			(34	)		97
Equipment financing agreements:
Payment performance
Performing		35,518		198,213		190,684		88,306		19,607			14,681			—			547,009
Nonperforming		—		846		3,613		1,729		216			537			—			6,941
Total equipment financing agreements		35,518		199,059		194,297		90,035		19,823			15,218			—			553,950
YTD gross charge-offs		—		19		1,364		400		170			15			—			1,968
YTD net charge-offs (recoveries)		—		19		1,207		310		164			(155	)		—			1,545
Total loans receivable:
Payment performance
Performing		348,678		1,193,116		1,718,867		1,199,867		622,773			739,128			341,387			6,163,816
Nonperforming		1,573		846		3,752		1,729		216			1,981			3,927			14,024
Total loans receivable	$	350,251	$	1,193,962	$	1,722,619	$	1,201,596	$	622,989		$	741,109		$	345,314		$	6,177,840
YTD gross charge-offs		—		19		1,490		400		170			44			—			2,123
YTD net charge-offs (recoveries)		—		19		1,333		310		159			(191	)		(34	)		1,596

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

16

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2023		2022		2021			2020		2019		Prior			Revolving Loans Amortized Cost Basis		Total
December 31, 2023
Real estate loans:
Commercial property
Payment performance
Performing	$	689,449	$	991,899	$	866,841		$	578,620	$	384,275	$	243,819		$	31,642	$	3,786,545
Nonperforming		1,835		—		150			—		81		783			—		2,849
Total commercial property		691,284		991,899		866,991			578,620		384,356		244,602			31,642		3,789,394
YTD gross charge-offs		—		—		—			411		—		216			—		627
YTD net charge-offs (recoveries)		—		—		—			403		—		(81	)		—		322
Construction
Payment performance
Performing		72,039		—		28,306			—		—		—			—		100,345
Nonperforming		—		—		—			—		—		—			—		—
Total construction		72,039		—		28,306			—		—		—			—		100,345
YTD gross charge-offs		—		—		—			—		—		—			—		—
YTD net charge-offs (recoveries)		—		—		—			—		—		—			—		—
Residential
Payment performance
Performing		290,196		375,712		158,618			12,656		217		119,736			5,525		962,660
Nonperforming		—		—		—			—		—		1			—		1
Total residential		290,196		375,712		158,618			12,656		217		119,737			5,525		962,661
YTD gross charge-offs		—		—		—			—		—		—			—		—
YTD net charge-offs (recoveries)		—		—		—			—		—		(7	)		—		(7	)
Total real estate loans
Payment performance
Performing		1,051,684		1,367,611		1,053,765			591,276		384,492		363,555			37,167		4,849,550
Nonperforming		1,835		—		150			—		81		784			—		2,850
Total real estate loans		1,053,519		1,367,611		1,053,915			591,276		384,573		364,339			37,167		4,852,400
YTD gross charge-offs		—		—		—			411		—		216			—		627
YTD net charge-offs (recoveries)		—		—		—			403		—		(88	)		—		315
Commercial and industrial loans:
Payment performance
Performing		177,864		183,787		84,198			31,415		10,050		13,066			242,134		742,514
Nonperforming		329		—		—			35		—		93			4,848		5,305
Total commercial and industrial loans		178,193		183,787		84,198			31,450		10,050		13,159			246,982		747,819
YTD gross charge-offs		—		17		—			—		110		410			6,120		6,657
YTD net charge-offs (recoveries)		—		5		(7	)		—		101		(6,621	)		6,090		(432	)
Equipment financing agreements:
Payment performance
Performing		215,670		211,228		101,622			24,340		18,844		3,192			—		574,896
Nonperforming		392		4,171		1,945			365		389		57			—		7,319
Total equipment financing agreements		216,062		215,399		103,567			24,705		19,233		3,249			—		582,215
YTD gross charge-offs		178		3,944		3,267			386		799		232			—		8,806
YTD net charge-offs (recoveries)		178		3,744		2,858			244		250		(114	)		—		7,160
Total loans receivable:
Payment performance
Performing		1,445,218		1,762,626		1,239,585			647,031		413,386		379,813			279,301		6,166,960
Nonperforming		2,556		4,171		2,095			400		470		934			4,848		15,474
Total loans receivable	$	1,447,774	$	1,766,797	$	1,241,680		$	647,431	$	413,856	$	380,747		$	284,149	$	6,182,434
YTD gross charge-offs		178		3,961		3,267			797		909		858			6,120		16,090
YTD net charge-offs (recoveries)		178		3,749		2,851			647		351		(6,823	)		6,090		7,043

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

17

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

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
	(in thousands)
March 31, 2024
Real estate loans:
Commercial property
Retail	$	757	$	—	$	—	$	757	$	1,090,302	$	1,091,059
Hospitality		—		—		—		—		740,160		740,160
Office		—		—		—		—		575,847		575,847
Other		2,950		366		574		3,890		1,363,505		1,367,395
Total commercial property loans		3,707		366		574		4,647		3,769,814		3,774,461
Construction		—		—		—		—		104,216		104,216
Residential		2,190		1,410		—		3,600		966,762		970,362
Total real estate loans		5,897		1,776		574		8,247		4,840,792		4,849,039
Commercial and industrial loans		107		3,989		—		4,096		770,755		774,851
Equipment financing agreements		7,452		1,994		3,924		13,370		540,580		553,950
Total loans receivable	$	13,456	$	7,759	$	4,498	$	25,713	$	6,152,127	$	6,177,840
December 31, 2023
Real estate loans:
Commercial property
Retail	$	632	$	—	$	—	$	632	$	1,106,728	$	1,107,360
Hospitality		—		150		22		172		740,347		740,519
Office		—		—		—		—		574,981		574,981
Other		592		—		—		592		1,365,942		1,366,534
Total commercial property loans		1,224		150		22		1,396		3,787,998		3,789,394
Construction		—		—		—		—		100,345		100,345
Residential		521		336		1		858		961,803		962,661
Total real estate loans		1,745		486		23		2,254		4,850,146		4,852,400
Commercial and industrial loans		76		120		5,178		5,374		742,445		747,819
Equipment financing agreements		7,138		2,134		4,551		13,823		568,392		582,215
Total loans receivable	$	8,959	$	2,740	$	9,752	$	21,451	$	6,160,983	$	6,182,434

18

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 March 31, 2024 and December 31, 2023.

	March 31, 2024
	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	$	161	$	437	$	—	$	598
Hospitality		292		—		—		292
Office		—		—		—		—
Other		2,148		16		—		2,164
Total commercial property loans		2,601		453		—		3,054
Total real estate loans		2,601		453		—		3,054
Commercial and industrial loans		—		4,029		—		4,029
Equipment financing agreements		663		6,278		—		6,941
Total	$	3,264	$	10,760	$	—	$	14,024
	December 31, 2023
	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	$	1,717	$	321	$	—	$	2,038
Hospitality		338		150		—		488
Other		305		18		—		323
Total commercial property loans		2,360		489		—		2,849
Residential		1		—		—		1
Total real estate loans		2,361		489		—		2,850
Commercial and industrial loans		5,213		92		—		5,305
Equipment financing agreements		570		6,749		—		7,319
Total	$	8,144	$	7,330	$	—	$	15,474

The Company recognized $9,000 and $104,000 of interest income on nonaccrual loans for the three months ended March 31, 2024 and 2023, respectively.

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

	March 31, 2024		December 31, 2023
	(in thousands)
Nonaccrual loans	$	14,024	$	15,474
Total nonperforming loans receivable		14,024		15,474
Other real estate owned (“OREO”)		117		117
Total nonperforming assets	$	14,141	$	15,591

OREO of $0.1 million is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023.

19

Loan Modifications

No loans were modified to borrowers experiencing financial difficulty during the three months ended March 31, 2024 or during the three months ended March 31, 2023.

Note 4 — Servicing Assets

The changes in servicing assets for the three months ended March 31, 2024 and 2023 were as follows:

	Three Months Ended March 31,
	2024			2023
	(in thousands)
Balance at beginning of period	$	7,070		$	7,176
Addition related to sale of SBA loans		514			615
Amortization		(694	)		(635	)
Change in valuation allowance		—			385
Balance at end of period	$	6,890		$	7,541

At March 31, 2024 and December 31, 2023, we serviced loans sold to unaffiliated parties of $536.0 million and $539.6 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 for each of the three months ended March 31, 2024 and 2023. 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 $0.7 million and $0.6 million for the three months ended March 31, 2024 and 2023, respectively.

The fair value of servicing rights was $8.3 million at March 31, 2024 and was determined using discount rates ranging from 11.1% to 22.2% and prepayment speeds ranging from 11.4% to 20.5%, depending on the stratification of the specific right. The fair value of servicing rights was $7.7 million at December 31, 2023 and was determined using discount rates ranging from 14.4% to 24.7% and prepayment speeds ranging from 12.2% to 19.7%, depending on the stratification of the specific right.

Note 5 — Income Taxes

The Company’s income tax expense was $6.6 million and $9.3 million, representing an effective income tax rate of 30.2% and 29.7% for the three months ended March 31, 2024 and 2023, respectively.

Management concluded that as of March 31, 2024 and December 31, 2023, a valuation allowance of $1.9 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 deferred tax assets were $35.9 million and $35.2 million as of March 31, 2024 and December 31, 2023, respectively.

As of March 31, 2024, the Company was subject to examination by various taxing authorities for its federal tax returns for the periods ended after December 31, 2019 and state tax returns for the periods ended after December 31, 2018. During the quarter ended March 31, 2024, 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.

20

Note 6 — Goodwill and other Intangibles

The third-party originator's 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:

		March 31, 2024							December 31, 2023
	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	$	(2,170	)	$	43	$	2,213	$	(2,145	)	$	68
Third-party originator's intangible	7 years		—		—			—		483		(483	)		—
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,244	$	(2,170	)	$	11,074	$	13,727	$	(2,628	)	$	11,099

The Company performed an impairment analysis in the first quarter of 2024 and determined there was no impairment as of March 31, 2024. No triggering event occurred as of, or subsequent to March 31, 2024, that would require a reassessment of goodwill and other intangible assets.

Note 7 — Deposits

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

	Time Deposits More Than $250,000		Other Time Deposits		Total
	(in thousands)
At March 31, 2024
2024	$	835,582	$	1,246,625	$	2,082,207
2025		158,310		250,112		408,422
2026		263		3,754		4,017
2027		—		807		807
2028 and thereafter		—		308		308
Total	$	994,155	$	1,501,606	$	2,495,761
At December 31, 2023
2024	$	995,830	$	1,444,509	$	2,440,339
2025		3,928		6,205		10,133
2026		263		3,142		3,405
2027		—		572		572
2028 and thereafter		—		418		418
Total	$	1,000,021	$	1,454,846	$	2,454,867

Accrued interest payable on deposits was $37.9 million and $39.2 million at March 31, 2024 and December 31, 2023, respectively. Total deposits reclassified to loans due to overdrafts at March 31, 2024 and December 31, 2023 were $1.5 million and $1.6 million, respectively.

21

Note 8 — Borrowings and Subordinated Debentures

At March 31, 2024, the Bank had $60.0 million of open advances and $112.5 million of term advances at the FHLB with a weighted average interest rate of 5.69% and 3.91%, respectively. At December 31, 2023, the Bank had $212.5 million of open advances and $112.5 million of term advances at the FHLB with a weighted average rate of 5.70% and 2.77%, respectively. Interest expense on borrowings for the three months ended March 31, 2024 and 2023 was $1.7 million and $2.4 million, respectively.

	March 31, 2024					December 31, 2023
	Outstanding Balance		Weighted Average Rate			Outstanding Balance		Weighted Average Rate
	(dollars in thousands)
Open advances	$	60,000		5.69	%	$	212,500		5.70	%
Advances due within 12 months		50,000		3.33			37,500		0.40
Advances due over 12 months through 24 months		25,000		4.44			12,500		1.90
Advances due over 24 months through 36 months		37,500		4.32			62,500		4.37
Outstanding advances	$	172,500		4.53	%	$	325,000		4.69	%

The following is financial data pertaining to FHLB advances:

	March 31, 2024			December 31, 2023
	(dollars in thousands)
Weighted-average interest rate at end of period		4.53	%		4.69	%
Weighted-average interest rate during the period		4.10	%		3.48	%
Average balance of FHLB advances	$	162,418		$	197,390
Maximum amount outstanding at any month-end	$	187,500		$	450,000

The Bank maintains a secured credit facility with the FHLB, allowing the Bank to borrow on an overnight and term basis. The Bank had pledged $2.45 billion and $2.36 billion of loans at carrying values as collateral with the FHLB as of March 31, 2024 and December 31, 2023, respectively. The remaining available borrowing capacity was $1.33 billion and $1.09 billion at March 31, 2024 and December 31, 2023, respectively.

The Bank also had securities pledged with the FRB with market values of $23.8 million and $24.8 million at March 31, 2024 and December 31, 2023, respectively. The pledged securities provided $22.3 million in available borrowing capacity through the Fed Discount Window as of March 31, 2024, and $23.2 million in available borrowing capacity through the Fed Discount Window and the Bank Term Funding Program (“BTFP”) as of December 31, 2023.

On August 20, 2021, the Company issued $110.0 million of Fixed-to-Floating Subordinated Notes (“2031 Notes”) with a maturity date of September 1, 2031. The 2031 Notes have an initial fixed interest rate of 3.75% 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 2031 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 2031 Notes’ maturity date. At March 31, 2024 and December 31, 2023, the balance of the 2031 Notes included in the Company’s Consolidated Balance Sheet, net of issuance cost, was $108.4 million and $108.3 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% fixed rate for the first five years and a variable rate of three-month LIBOR plus 140 basis points thereafter and invested the proceeds in the Subordinated Debentures. Beginning September 15, 2023, the variable rate on the TPS changed to three-month SOFR plus 166 basis points, representing the credit spread of 140 basis points and a 26 basis point adjustment to convert three-month LIBOR to three-month SOFR. The rate on the TPS at March 31, 2024 was 6.99%. 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 March 31, 2024 and December 31, 2023, the balance of Subordinated Debentures included in the Company’s Consolidated Balance Sheets, net of discount of $5.0 million and $5.1 million, was $21.8 million and $21.7 million, respectively. The amortization of discount was $106,000 and $104,000 for the three months ended March 31, 2024 and 2023, respectively.

22

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 stock units (“PSUs”) 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
	March 31,
	2024		2023
	(dollars in thousands, except per share amounts)
Basic EPS
Net income	$	15,164	$	21,991
Less: income allocated to unvested restricted stock		92		117
Income allocated to common shares	$	15,072	$	21,874
Weighted-average shares for basic EPS		30,119,646		30,347,325
Basic EPS (1)	$	0.50	$	0.72
Effect of dilutive stock options and unvested performance stock units		—		83,420
Diluted EPS
Income allocated to common shares	$	15,072	$	21,874
Weighted-average shares for diluted EPS		30,119,646		30,430,745
Diluted EPS (1)	$	0.50	$	0.72

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

On a weighted-average basis, options to purchase 61,000 and 31,034 shares of common stock were excluded from the calculation of diluted earnings per share for the three months ended March 31, 2024 and 2023, respectively, because their effect would have been anti-dilutive. There were 91,732 of and no anti-dilutive unvested PSUs outstanding for the three months ended March 31, 2024 and 2023, respectively.

No PSUs were awarded to executive officers during the three months ended March 31, 2024. During the three months ended March 31, 2023, the Company issued 52,450 PSUs to executive officers from the 2021 Equity Compensation Plan with a fair value of $1.1 million on the grant date of March 10, 2023. These units have a three-year cliff vesting period and include dividend equivalent rights. Total PSUs outstanding as of March 31, 2024 were 91,732 with an aggregate grant fair value of $2.1 million. Total PSUs outstanding as of March 31, 2023 were 157,049 with an aggregate grant fair value of $3.1 million.

23

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% and a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%. 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%.

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% and a minimum ratio of Tier 1 capital to risk-weighted assets of 8.0%. 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%.

At March 31, 2024, 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% 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 6.50% and 6.27% and the Company's capital conservation buffer was 6.40% and 6.20% as of March 31, 2024 and December 31, 2023, 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 March 31, 2024 and December 31, 2023 were as follows:

						Minimum					Minimum to Be
						Regulatory					Categorized as
	Actual					Requirement					“Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
March 31, 2024
Total capital (to risk-weighted assets):
Hanmi Financial	$	958,173		15.20	%	$	504,319		8.00	%	N/A		N/A
Hanmi Bank	$	914,061		14.50	%	$	504,340		8.00	%	$	630,425		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	781,521		12.40	%	$	378,239		6.00	%	N/A		N/A
Hanmi Bank	$	847,409		13.44	%	$	378,255		6.00	%	$	504,340		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	759,752		12.05	%	$	283,680		4.50	%	N/A		N/A
Hanmi Bank	$	847,409		13.44	%	$	283,691		4.50	%	$	409,776		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	781,521		10.36	%	$	301,758		4.00	%	N/A		N/A
Hanmi Bank	$	847,409		11.29	%	$	300,334		4.00	%	$	375,417		5.00	%
December 31, 2023
Total capital (to risk-weighted assets):
Hanmi Financial	$	947,286		14.95	%	$	506,891		8.00	%	N/A		N/A
Hanmi Bank	$	904,153		14.27	%	$	506,741		8.00	%	$	633,426		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	773,179		12.20	%	$	380,168		6.00	%	N/A		N/A
Hanmi Bank	$	840,046		13.26	%	$	380,056		6.00	%	$	506,741		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	751,516		11.86	%	$	285,126		4.50	%	N/A		N/A
Hanmi Bank	$	840,046		13.26	%	$	285,042		4.50	%	$	411,727		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	773,179		10.37	%	$	298,277		4.00	%	N/A		N/A
Hanmi Bank	$	840,046		11.32	%	$	296,948		4.00	%	$	371,185		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 March 31, 2024 and December 31, 2023, 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, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, and result in 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, and result in a Level 3 classification. 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 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 March 31, 2024 and December 31, 2023, 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)
March 31, 2024
Assets:
Securities available for sale:
U.S. Treasury securities	$	87,304	$	—	$	—	$	87,304
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		—		424,673		—		424,673
Mortgage-backed securities - commercial		—		47,220		—		47,220
Collateralized mortgage obligations		—		121,735		—		121,735
Debt securities		—		124,816		—		124,816
Total U.S. government agency and sponsored agency obligations		—		718,444		—		718,444
Municipal bonds-tax exempt		—		66,442		—		66,442
Total securities available for sale	$	87,304	$	784,886	$	—	$	872,190
Derivative financial instruments	$	—	$	6,459	$	—	$	6,459
Liabilities:
Derivative financial instruments	$	—	$	8,318	$	—	$	8,318
December 31, 2023
Assets:
Securities available for sale:
U.S. Treasury securities	$	85,488	$	—	$	—	$	85,488
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		—		442,328		—		442,328
Mortgage-backed securities - commercial		—		47,991		—		47,991
Collateralized mortgage obligations		—		97,411		—		97,411
Debt securities		—		124,625		—		124,625
Total U.S. government agency and sponsored agency obligations		—		712,355		—		712,355
Municipal bonds-tax exempt		—		67,896		—		67,896
Total securities available for sale	$	85,488	$	780,251	$	—	$	865,739
Derivative financial instruments	$	—	$	6,245	$	—	$	6,245
Liabilities:
Derivative financial instruments	$	—	$	5,920	$	—	$	5,920

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

As of March 31, 2024 and December 31, 2023, 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)
March 31, 2024
Assets:
Collateral dependent loans (1)	$	4,410	$	—	$	—	$	4,410
Other real estate owned		117		—		—		117
Repossessed personal property		1,288		—		—		1,288
December 31, 2023
Assets:
Collateral dependent loans (2)	$	7,352	$	—	$	—	$	7,352
Other real estate owned		117		—		—		117
Repossessed personal property		1,305		—		—		1,305

(1)Consisted of real estate loans of $2.4 million and commercial and industrial loans of $2.0 million.

(2)Consisted of real estate loans of $2.2 million and commercial and industrial loans of $5.2 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 March 31, 2024 and December 31, 2023:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
March 31, 2024
Collateral dependent loans:
Real estate loans:
Commercial property
Hospitality	$	299	Market approach	Adjustments to market data	(30)% to 35% / (3)%	(1)
Other		2,147	Market approach	Adjustments to market data	(25)% to 25% / 8%	(1)
Total real estate loans		2,446
Commercial and industrial loans		1,964	Market approach	Adjustments to market data	N/A	(2)
Total	$	4,410
Other real estate owned	$	117	Market approach	Adjustments to market data	0% to 5% / 4%	(1)
Repossessed personal property		1,288	Market approach	Adjustments to market data	N/A	(3)
December 31, 2023
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	1,530	Market approach	Adjustments to market data	5% to 20% / 15%	(1)
Hospitality		338	Market approach	Adjustments to market data	(30)% to 35% / (1)%	(1)
Other		305	Market approach	Adjustments to market data	(6)% to 1% / (2)%	(1)
Residential		1	Market approach	Adjustments to market data	(15)% to 3% / (6)%	(1)
Total real estate loans		2,174
Commercial and industrial loans		5,178	Market approach	Adjustments to market data	(20)% to 55% / (2)%	(1)
Total	$	7,352
Other real estate owned	$	117	Market approach	Adjustments to market data	(10)% to 5% / (2)%	(1)
Repossessed personal property		1,305	Market approach	Adjustments to market data	N/A	(3)

(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 adjustments represent decreases.

(2)Includes one loan secured by cash and business assets.

(3)The equipment is usually too small 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

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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 March 31, 2024, 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 estimated fair values of financial instruments were as follows:

	March 31, 2024
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	256,038	$	256,038	$	—	$	—
Securities available for sale		872,190		87,304		784,886		—
Loans held for sale		3,999		—		4,109		—
Loans receivable, net of allowance for credit losses		6,109,570		—		—		6,011,407
Accrued interest receivable		23,032		23,032		—		—
Financial liabilities:
Noninterest-bearing deposits		1,933,060		—		1,933,060		—
Interest-bearing deposits		4,443,000		—		—		4,437,547
Borrowings and subordinated debentures		302,665		—		171,201		131,361
Accrued interest payable		38,007		38,007		—		—

	December 31, 2023
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	302,324	$	302,324	$	—	$	—
Securities available for sale		865,739		85,488		780,251		—
Loans held for sale		12,013		—		12,238		—
Loans receivable, net of allowance for credit losses		6,112,972		—		—		6,007,975
Accrued interest receivable		23,371		23,371		—		—
Financial liabilities:
Noninterest-bearing deposits		2,003,596		—		2,003,596		—
Interest-bearing deposits		4,276,978		—		—		4,271,711
Borrowings and subordinated debentures		455,012		—		323,491		128,229
Accrued interest payable		39,306		39,306		—		—

The methods and assumptions used to estimate the fair value of each class of financial instruments for which it was practicable to estimate that value are explained below:

Cash and due from banks – The carrying amounts of cash and due from banks approximate fair value due to the short-term nature of these instruments (Level 1).

Securities – The fair value of securities, consisting of securities available for sale, is generally obtained from market bids for similar or identical securities, from independent securities brokers or dealers, or from other model-based valuation techniques described above (Level 1 and 2).

Loans held for sale – Loans held for sale, representing the guaranteed portion of SBA loans, are carried at the lower of aggregate cost or fair market value, as determined based upon quotes, bids or sales contract prices (Level 2).

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Loans receivable, net of allowance for credit losses – The fair value of loans receivable is estimated based on the discounted cash flow approach. To estimate the fair value of the loans, certain loan characteristics such as account types, remaining terms, annual interest rates or coupons, interest types, past delinquencies, timing of principal and interest payments, current market rates, loan-to-value ratios, loss exposures, and remaining balances are considered. Additionally, the Company’s prior charge-off rates and loss ratios as well as various other assumptions relating to credit, interest, and prepayment risks are used as part of valuing the loan portfolio. Subsequently, the loans were individually evaluated by sorting and pooling them based on loan types, credit risk grades, and payment types. Consistent with the requirements of ASU 2016-01, the fair value of the Company's loans receivable is considered to be an exit price notion as of March 31, 2024 (Level 3).

The fair value of collateral dependent loans is estimated based on the net realizable fair value of the collateral or the observable market price of the most recent sale or quoted price from loans held for sale. The Company does not record loans at fair value on a recurring basis. Nonrecurring fair value adjustments to collateral dependent loans are recorded based on the current appraised value of the collateral (Level 3).

Accrued interest receivable – The carrying amount of accrued interest receivable approximates its fair value (Level 1).

Noninterest-bearing deposits – The fair value of noninterest-bearing deposits is the amount payable on demand at the reporting date (Level 2).

Interest-bearing deposits – The fair value of interest-bearing deposits, such as savings accounts, money market checking, and certificates of deposit, is estimated based on discounted cash flows. The cash flows for non-maturity deposits, including savings accounts and money market checking, are estimated based on their historical decaying experiences. The discount rate used for fair valuation is based on interest rates currently being offered by the Bank on comparable deposits as to amount and term (Level 3).

Borrowings and subordinated debentures – Borrowings consist of FHLB advances, subordinated debentures and other borrowings. Discounted cash flows based on current market rates for borrowings with similar remaining maturities are used to estimate the fair value of borrowings (Level 2 and 3).

Accrued interest payable – The carrying amount of accrued interest payable approximates its fair value (Level 1).

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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 its 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.

Some of the commitments to fund existing loans, lines of credit and letters of credit are expected to expire without being drawn upon. Therefore, the total commitments do not necessarily represent future cash requirements. As of March 31, 2024, the Bank was obligated on $120.0 million of letters of credit to the FHLB of San Francisco, which were being used as collateral for $120.0 million in public fund deposits from the State of California.

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

	March 31,		December 31,
	2024		2023
	(in thousands)
Unused commitments to extend credit	$	792,769	$	813,960
Standby letters of credit		83,772		83,725
Commercial letters of credit		35,929		33,140
Total commitments	$	912,470	$	930,825

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 March 31,
	2024			2023
	(in thousands)
Balance at beginning of period	$	2,474		$	3,114
Credit loss recovery		(177	)		(48	)
Balance at end of period	$	2,297		$	3,066

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 month to nine years and nine months, some of which include renewal or termination options to extend the lease for up to seven 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.

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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 March 31, 2024, the outstanding balances for our right-of-use asset and lease liability were $40.0 million and $44.0 million, respectively. The outstanding balances of the right-of-use asset and lease liability were $42.4 million and $46.4 million, respectively, as of December 31, 2023. The right-of-use asset is reported in prepaid expenses and other assets line item and lease liability is reported in accrued expenses and other liabilities line item on the Consolidated Balance Sheets.

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 March 31, 2024, 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)
2024	$	8,439
2025		7,550
2026		6,669
2027		6,593
2028		5,833
Thereafter		13,618
Remaining lease commitments		48,702
Interest		(4,716	)
Present value of lease liability	$	43,986

Net lease expense recognized for the three months ended March 31, 2024 and 2023 was $2.2 million and $2.0 million, respectively. This included operating lease costs of $2.2 million and $2.1 million for the three months ended March 31, 2024 and 2023, respectively. Sublease income for operating leases was immaterial for both the three months ended March 31, 2024 and 2023.

Weighted average remaining lease terms for the Company's operating leases were 6.72 years and 6.82 years as of March 31, 2024 and December 31, 2023, respectively. Weighted average discount rates used for the Company's operating leases were 2.99% and 2.98% as of March 31, 2024 and December 31, 2023, respectively.

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 $2.2 million and $2.1 million for the three months ended March 31, 2024 and 2023, respectively.

Note 14 — Liquidity

Hanmi Financial

As of March 31, 2024, Hanmi Financial had $6.7 million in cash on deposit with its bank subsidiary and $34.3 million of U.S. Treasury securities at fair value. As of December 31, 2023, the Company had $7.5 million in cash on deposit with its bank subsidiary and $32.4 million of U.S. Treasury securities at fair value. 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 its 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, brokered deposits as well as State of California time deposits. As of March 31, 2024 and December 31, 2023, the Bank had $172.5 million and $325.0 million of FHLB advances, $43.3 million and $58.3 million of brokered deposits, respectively, and $120.0 million of State of California time deposits as of March 31, 2024 and December 31, 2023.

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% of its assets. As of March 31, 2024 and December 31, 2023, the total borrowing capacity available, based on pledged collateral was $1.63 and $1.54 billion, respectively.

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The remaining available borrowing capacity was $1.33 billion and $1.09 billion as of March 31, 2024 and December 31, 2023, 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 $22.3 million from the Federal Reserve Discount Window, to which the Bank pledged securities with a carrying value of $28.1 million, with no borrowings as of March 31, 2024. 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 March 31, 2024 or December 31, 2023.

Note 15 — Derivatives and Hedging Activities

Risk Management Objective of Using Derivative

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates.

Derivatives Designated as Hedging Instruments - Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives were used to hedge the variable cash flows associated with existing variable-rate assets. During the fourth quarter of 2023, the Company entered into a $100.0 million notional interest rate swap designated as a cash flow hedge, with an effective date of May 1, 2024 and a maturity date of May 1, 2026, to hedge a pool of Prime-indexed loans against falling rates. The principal balance of the loan pool designated for the Prime-indexed loans was $152.9 million as of March 31, 2024. During the first quarter of 2024, the Company entered into a $75.0 million notional interest rate swap designated as a cash flow hedge, with an effective date of May 1, 2024 and a maturity date of May 1, 2026, to hedge a pool of one-month SOFR-indexed loans against falling rates. The principal balance of the loan pool designated for the SOFR-indexed loans was $103.5 million as of March 31, 2024.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Management evaluated the effectiveness of the Company’s derivatives designated as cash flow hedges at inception and at the balance sheet date and determined they are effective. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During the next 12 months, the Company estimates that an additional $1.7 million will be reclassified as a decrease to interest income.

Derivatives Not Designated as Hedging Instruments

The Company also enters into 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.

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The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of March 31, 2024 and December 31, 2023.

As of March 31, 2024	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	$	103,918	Other Assets	$	6,459	$	103,918	Other Liabilities	$	6,417
Total derivatives not designated as hedging instruments				$	6,459				$	6,417
Derivatives designated as hedging instruments
Interest rate products	$	—	Other Assets	$	—	$	175,000	Other Liabilities	$	1,901
Total derivatives designated as hedging instruments				$	—				$	1,901
As of December 31, 2023	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	$	104,571	Other Assets	$	5,939	$	104,571	Other Liabilities	$	5,920
Total derivatives not designated as hedging instruments				$	5,939				$	5,920
Derivatives designated as hedging instruments
Interest rate products	$	100,000	Other Assets	$	306	$	—	Other Liabilities	$	—
Total derivatives designated as hedging instruments				$	306				$	—

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The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income as of March 31, 2024 and December 31, 2023.

As of March 31, 2024
Derivatives in Subtopic 815-20 Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative			Amount of Gain or (Loss) Recognized in OCI Included Component			Amount of Gain or (Loss) Recognized in OCI Excluded Component		Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component
	(in thousands)
Derivatives in Cash Flow Hedging Relationships
Interest Rate Products	$	(2,207	)	$	(2,207	)	$	—	Interest Income	$	—	$	—	$	—
Total	$	(2,207	)	$	(2,207	)	$	—		$	—	$	—	$	—
As of December 31, 2023
Derivatives in Subtopic 815-20 Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative			Amount of Gain or (Loss) Recognized in OCI Included Component			Amount of Gain or (Loss) Recognized in OCI Excluded Component		Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component
	(in thousands)
Derivatives in Cash Flow Hedging Relationships
Interest Rate Products	$	306		$	306		$	—	Interest Income	$	—	$	—	$	—
Total	$	306		$	306		$	—		$	—	$	—	$	—

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 months ended March 31, 2024 and 2023.

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 March 31,
		2024		2023
		(in thousands)
Interest rate products	Other income	$	23	$	(128	)
Total		$	23	$	(128	)

No fee income was recognized from its derivative financial instruments for the three months ended March 31, 2024, compared to $0.6 million for the three months ended March 31, 2023.

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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 March 31, 2024 and December 31, 2023. 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 March 31, 2024
							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	$	6,459	$	—	$	6,459	$	1,901	$	4,558	$	—
Offsetting of Derivative Liabilities
As of March 31, 2024
							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	$	8,318	$	—	$	8,318	$	1,901	$	—	$	6,417
Offsetting of Derivative Assets
As of December 31, 2023
							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	$	6,245	$	—	$	6,245	$	284	$	5,731	$	230
Offsetting of Derivative Liabilities
As of December 31, 2023
							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	$	5,920	$	—	$	5,920	$	284	$	—	$	5,636

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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 March 31, 2024 and December 31, 2023, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $0. As of March 31, 2024 and December 31, 2023, no collateral was provided related to these agreements.

Note 16 — Subsequent Events

Cash Dividend

On April 25, 2024, the Company announced that the Board of Directors of the Company declared a quarterly cash dividend of $0.25 per share to be paid on May 22, 2024 to stockholders of record as of the close of business on May 6, 2024.

Share Repurchase

In addition to the share repurchases completed during the first quarter of 2024, the Company announced on April 25, 2024 that the Board of Directors has adopted a new stock repurchase program under which the Company may repurchase up to 5% of its outstanding shares, or approximately 1.5 million shares of its common stock. The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. The repurchase program does not obligate the Company to purchase any particular number of shares.

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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 months ended March 31, 2024. This analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 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 March 31, 2024 (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 condition 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, financial condition, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

•a failure to maintain adequate levels of capital and liquidity to support our operations;

•general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;

•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;

•inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;

•our ability to enter new markets successfully and capitalize on growth opportunities;

•the current or anticipated impact of military conflict, terrorism or other geopolitical events;

•the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;

•risks of natural disasters;

•legal proceedings and litigation brought against us;

•a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;

•the failure to maintain current technologies;

•risks associated with Small Business Administration loans;

•failure to attract or retain key employees;

•our ability to access cost-effective funding;

•changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio;

•fluctuations in real estate values;

•changes in accounting policies and practices;

•changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;

•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;

•strategic transactions we may enter into;

•the adequacy of and changes in the methodology for computing our allowance for credit losses;

•our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;

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•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; and

•cyber security and fraud risks against our information technology 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 2023 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 2023 Annual Report on Form 10-K. We had no significant changes in our accounting policies since the filing of our 2023 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 accounting policies, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” in our 2023 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

Financial results include the following:

	As of or for the Three Months Ended March 31,
	2024			2023
	(dollars in thousands, except per share data)
Net income	$	15,164		$	21,991
Earnings per diluted share	$	0.50		$	0.72
Dividends per share	$	0.25		$	0.25
Return on average assets		0.81	%		1.21	%
Return on average stockholders’ equity		7.90	%		12.19	%

Net income was $15.2 million, or $0.50 per diluted share, for the three months ended March 31, 2024 compared to $22.0 million, or $0.72 per diluted share, for the same period a year ago. The decrease in net income was driven by decreases in net interest income and noninterest income of $7.2 million and $0.6 million, respectively, and a $3.7 million increase in noninterest expense, offset by decreases in credit loss expense of $1.9 million and $2.7 million in income tax expense. Credit loss expense for the first quarter of 2024 was $0.2 million compared to $2.1 million for the first quarter of 2023. Credit loss expense for the first quarter of 2024 included a $0.4 million provision for loan losses, offset by a $0.2 million recovery for off-balance sheet items. Credit loss expense for the first quarter of 2023 included a $2.2 million provision for loan losses, offset by a $0.1 million recovery for off-balance sheet items.

Other financial highlights include the following:

	March 31,		December 31,
	2024		2023
	(in thousands)
Loans receivable, gross	$	6,177,840	$	6,182,434
Securities available for sale, at fair value		872,190		865,739
Total assets		7,512,046		7,570,341
Deposits		6,376,060		6,280,574
Borrowings		172,500		325,000
Total stockholders’ equity		703,100		701,891

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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 market 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
	March 31, 2024								March 31, 2023
				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)	$	6,137,888		$	91,674		6.00	%	$	5,944,399		$	80,923		5.51	%
Securities (2)		969,520			4,955		2.07	%		980,712			4,025		1.67	%
FHLB stock		16,385			361		8.87	%		16,385			289		7.16	%
Interest-bearing deposits in other banks		201,724			2,604		5.19	%		192,902			2,066		4.34	%
Total interest-earning assets		7,325,517			99,594		5.47	%		7,134,398			87,303		4.96	%
Noninterest-earning assets:
Cash and due from banks		58,382								65,088
Allowance for credit losses		(69,106	)							(71,452	)
Other assets		244,700								239,121
Total assets	$	7,559,493							$	7,367,155
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	86,401		$	30		0.14	%	$	109,391		$	29		0.11	%
Money market and savings		1,815,085			16,553		3.67	%		1,453,569			7,315		2.04	%
Time deposits		2,507,830			29,055		4.66	%		2,223,615			18,154		3.31	%
Total interest-bearing deposits		4,409,316			45,638		4.16	%		3,786,575			25,498		2.73	%
Borrowings		162,418			1,655		4.10	%		268,056			2,369		3.58	%
Subordinated debentures		130,088			1,646		5.06	%		129,483			1,583		4.89	%
Total interest-bearing liabilities		4,701,822			48,939		4.19	%		4,184,114			29,450		2.85	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,921,189								2,324,413
Other liabilities		164,524								127,112
Stockholders’ equity		771,958								731,516
Total liabilities and stockholders’ equity	$	7,559,493							$	7,367,155
Net interest income				$	50,655							$	57,853
Cost of deposits (3)							2.90	%							1.69	%
Net interest spread (taxable equivalent basis) (4)							1.28	%							2.10	%
Net interest margin (taxable equivalent basis) (5)							2.78	%							3.28	%

(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)Securities average yield is calculated on a fully taxable equivalent basis using the current statutory federal tax rate of 21%.

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

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(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.

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
	March 31, 2024 vs March 31, 2023
	Increases (Decreases) Due to Change In
	Volume			Rate			Total
	(in thousands)
Interest and dividend income:
Loans receivable (1)	$	3,316		$	7,435		$	10,751
Securities (2)		(46	)		976			930
FHLB stock		2			70			72
Interest-bearing deposits in other banks		113			425			538
Total interest and dividend income		3,385			8,906			12,291
Interest expense:
Demand: interest-bearing	$	(6	)	$	7		$	1
Money market and savings		1,895			7,343			9,238
Time deposits		2,492			8,409			10,901
Borrowings		(922	)		208			(714	)
Subordinated debentures		7			56			63
Total interest expense		3,466			16,023			19,489
Change in net interest income	$	(81	)	$	(7,117	)	$	(7,198	)

(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)Securities average yield is calculated on a fully taxable equivalent basis using the current statutory federal tax rate of 21%.

For the three months ended March 31, 2024 and 2023, net interest income was $50.7 million and $57.9 million, respectively. The net interest spread and net interest margin, on a taxable equivalent basis, for the quarter ended March 31, 2024, were 1.28% and 2.78%, respectively, compared to 2.10% and 3.28%, respectively, for the same period in 2023. Interest and dividend income increased $12.3 million, or 14.1%, to $99.6 million for the three months ended March 31, 2024 from $87.3 million for the same period in 2023, primarily due to higher average interest-earning asset yields and an increase in the average balance of loans. Interest expense increased $19.5 million, or 66.2%, to $48.9 million for the three months ended March 31, 2024 from $29.5 million for the same period in 2023 primarily due to increases in deposit rates and average deposit balances and, to a lesser extent, an increase in the cost of borrowings. The increases in average interest-earning asset yields and deposit and borrowing rates were due to the rising interest rate environment.

The average balance of interest earning assets increased $191.1 million, or 2.7%, to $7.33 billion for the three months ended March 31, 2024, from $7.13 billion for the three months ended March 31, 2023. The average balance of loans increased $193.5 million, or 3.3%, to $6.14 billion for the three months ended March 31, 2024, from $5.94 billion for the three months ended March 31, 2023. The average balance of securities decreased $11.2 million, or 1.1%, to $969.5 million for the three months ended March 31, 2024, from $980.7 million for the three months ended March 31, 2023. The average balance of interest-bearing deposits at other banks increased $8.8 million, or 4.6%, to $201.7 million for the three months ended March 31, 2024, from $192.9 million for the three months ended March 31, 2023.

The average yield on interest-earning assets, on a taxable equivalent basis, increased 51 basis points to 5.47% for the three months ended March 31, 2024, from 4.96% for the three months ended March 31, 2023. The average yield on loans increased to 6.00% for the three months ended March 31, 2024, from 5.51% for the three months ended March 31, 2023. The average yield on securities, on a taxable equivalent basis, increased to 2.07% for the three months ended March 31, 2024, from 1.67% for the three months ended March 31, 2023. The average yield on interest-bearing deposits in other banks increased 85 basis points to 5.19% for the three months ended March 31, 2024, from 4.34% for the three months ended March 31, 2023. The increased yields were primarily due to increases in market interest rates.

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The average balance of interest-bearing liabilities increased $517.7 million, or 12.4%, to $4.70 billion for the three months ended March 31, 2024 compared with $4.18 billion for the three months ended March 31, 2023. The average balances of time deposits and money market and savings accounts increased $284.2 million and $361.5 million, respectively, offset partially by decreases in interest-bearing demand deposits and borrowings of $23.0 million and $105.6 million, respectively.

The average cost of interest-bearing liabilities was 4.19% and 2.85% for the three months ended March 31, 2024 and 2023, respectively. The average cost of interest-bearing deposits increased 143 basis points to 4.16% for the three months ended March 31, 2024, compared with 2.73% for the three months ended March 31, 2023. The average cost of time deposits increased 135 basis points to 4.66% for the three months ended March 31, 2024 compared with 3.31% for the three months ended March 31, 2023. The average cost of money market and savings accounts increased 163 basis points to 3.67% for the three months ended March 31, 2023 compared with 2.04% for the three months ended March 31, 2023.The average cost of subordinated debentures increased 17 basis points to 5.06% for the three months ended March 31, 2024 compared with 4.89% for the three months ended March 31, 2023. The average cost of borrowings increased 52 basis points to 4.10% for the three months ended March 31, 2024 compared with 3.58% for the three months ended March 31, 2023. The increased costs were primarily due to increases in market interest rates.

Credit Loss Expense

For the first quarter of 2024, the Company recorded $0.2 million of credit loss expense, comprised of a $0.4 million provision for loan losses, offset by a $0.2 million recovery for off-balance sheet items. For the same period in 2023, the Company recorded $2.1 million of credit loss expense, comprised of a $2.2 million credit loss provision for loan losses, offset by a $0.1 million recovery for off-balance sheet items. The credit loss expense for the three months ended March 31, 2024 was mainly attributed to a $1.9 million specific allowance on a $3.9 million nonperforming commercial and industrial loan in the health-care industry, and $1.6 million in net charge-offs, offset by a $3.1 million decrease in the allowance for quantitative and qualitative considerations. The decrease in the allowance for quantitative and qualitative considerations was primarily attributable to a reduction of loss rates in the commercial real estate hospitality industry. The credit loss expense for the three months ended March 31, 2023 was mainly attributed to a specific reserve allocation of $2.5 million on a nonperforming commercial and industrial loan in the health-care industry, offset by loan recoveries of $5.0 million.

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 March 31,				Increase (Decrease)			Increase (Decrease)
	2024		2023		Amount			Percent
	(in thousands)
Service charges on deposit accounts	$	2,450	$	2,579	$	(129	)		(5.00	)%
Trade finance and other service charges and fees		1,414		1,258		156			12.40
Servicing income		712		742		(30	)		(4.04	)
Bank-owned life insurance income		304		270		34			12.59
All other operating income		928		1,618		(690	)		(42.65	)
Service charges, fees & other		5,808		6,467		(659	)		(10.19	)
Gain on sale of SBA loans		1,482		1,869		(387	)		(20.71	)
Gain on sale of mortgage loans		443		—		443			100.00
Total noninterest income	$	7,733	$	8,336	$	(603	)		(7.23	)%

For the three months ended March 31, 2024, noninterest income was $7.7 million, a decrease of $0.6 million, or 7.2%, compared to $8.3 million for the same period in 2023, due primarily to a decrease in all other operating income. The $0.7 million decrease in all other operating income was mainly attributed to a $0.6 million decrease in swap fee income. During the first quarter of 2024, the Company sold $29.7 million of residential loans and recognized a net gain of $0.4 million. The gain on sale of mortgage loans was partially offset by the reduction in gain on sale of SBA loans compared to the same period in 2023, due to lower sales volume of $4.1 million and a reduction in trade premiums of 62 basis points from 7.85% to 7.23%.

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Noninterest Expense

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

	Three Months Ended March 31,					Increase (Decrease)			Increase (Decrease)
	2024		2023			Amount			Percent
	(in thousands)
Salaries and employee benefits	$	21,585	$	20,610		$	975			4.73	%
Occupancy and equipment		4,537		4,412			125			2.83
Data processing		3,551		3,253			298			9.16
Professional fees		1,893		1,335			558			41.80
Supplies and communications		601		676			(75	)		(11.09	)
Advertising and promotion		907		833			74			8.88
All other operating expenses		3,160		1,957			1,203			61.47
Subtotal		36,234		33,076			3,158			9.55
Other real estate owned expense		22		(201	)		223			(110.95	)
Repossessed personal property expense (income)		189		(84	)		273			(325.00	)
Total noninterest expense	$	36,445	$	32,791		$	3,654			11.14	%

For the three months ended March 31, 2024, noninterest expense was $36.4 million, an increase of $3.7 million, or 11.1%, compared with $32.8 million for the same period in 2023. Salaries and employee benefits increased $1.0 million due to higher salaries, group insurance, share-based compensation expense and a decrease in capitalized loan origination costs from lower loan originations. Professional fees increased $0.6 million due to higher consulting, accounting and legal expenses. All other operating expenses increased $1.2 million mainly due to a higher FDIC assessment of $0.3 million and the reversal of a $0.4 million SBA impairment adjustment in the first quarter of 2023. The change in OREO expense was due to a $0.3 million reimbursement of expenses received during the three months ended March 31, 2023. The change in repossessed personal property expense was due to a $0.3 million loss on sale of lease assets.

Income Tax Expense

Income tax expense was $6.6 million and $9.3 million representing an effective income tax rate of 30.2% and 29.7% for the three months ended March 31, 2024 and 2023, respectively.

Financial Condition

Securities

As of March 31, 2024, 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 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% of stockholders’ equity as of March 31, 2024 or December 31, 2023.

Securities increased $6.5 million to $872.2 million at March 31, 2024 from $865.7 million at December 31, 2023, mainly attributed to $38.4 million in securities purchases, offset by $26.2 million in paydowns and maturities.

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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 March 31, 2024:

						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	$	41,132		3.95	%	$	47,275		3.94	%	$	—		0.00	%	$	—		0.00	%	$	88,407		3.94	%
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		13		2.99			20		3.03			22,601		0.35			467,080		1.69			489,714		1.63
Mortgage-backed securities - commercial		4,107		3.72			4,384		0.84			—		—			51,112		1.57			59,603		1.66
Collateralized mortgage obligations		—		—			166		1.27			353		2.63			131,237		3.55			131,756		3.54
Debt securities		30,705		2.08			101,531		1.14			—		—			—		—			132,236		1.36
Total U.S. government agency and sponsored agency obligations		34,825		2.27			106,101		1.13			22,954		0.38			649,429		2.06			813,309		1.90
Municipal bonds-tax exempt		—		—			—		—			32,655		1.36			44,209		1.32			76,864		1.34
Total securities available for sale	$	75,957		3.18	%	$	153,376		1.99	%	$	55,609		2.22	%	$	693,638		2.01	%	$	978,580		2.11	%

Loans Receivable

As of March 31, 2024 and December 31, 2023, loans receivable (excluding loans held for sale), net of deferred loan fees and costs, discounts and allowance for credit losses, were $6.11 billion. For the three months ended March 31, 2024, there was $234.0 million in new loan production and $10.2 million in SBA loan purchases, offset partially by $141.6 million in loan sales and payoffs, and amortization and other reductions of $97.0 million. Loan production consisted of commercial real estate loans of $60.1 million, residential mortgages of $53.1 million, commercial and industrial loans of $50.8 million, equipment financing agreements of $39.2 million and SBA loans of $30.8 million.

The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses as of March 31, 2024. 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 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	$	150,284	$	311,361	$	360,865	$	218,920	$	49,629	$	1,091,059
Hospitality		233,654		193,201		201,905		95,599		15,801		740,160
Office		54,535		342,603		150,388		21,239		7,082		575,847
Other		169,203		473,436		471,263		208,393		45,100		1,367,395
Total commercial property loans		607,676		1,320,601		1,184,421		544,151		117,612		3,774,461
Construction		63,437		38,788		1,991		—		—		104,216
Residential		5,193		70		133		4,290		960,676		970,362
Total real estate loans		676,306		1,359,459		1,186,545		548,441		1,078,288		4,849,039
Commercial and industrial loans		309,891		241,011		98,652		125,297		—		774,851
Equipment financing agreements		32,340		203,635		300,864		17,111		—		553,950
Loans receivable	$	1,018,537	$	1,804,105	$	1,586,061	$	690,849	$	1,078,288	$	6,177,840
Loans with predetermined interest rates		482,612		1,260,548		978,530		58,522		262,591		3,042,803
Loans with variable interest rates		535,925		543,557		607,531		632,327		815,697		3,135,037

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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, as of March 31, 2024.

	Within One Year		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	$	119,432	$	279,343	$	198,809	$	1,557	$	235	$	599,376
Hospitality		86,408		133,332		103,528		697		—		323,965
Office		25,608		264,095		91,734		—		—		381,437
Other		105,980		378,570		270,490		28,954		5,218		789,212
Total commercial property loans		337,428		1,055,340		664,561		31,208		5,453		2,093,990
Construction		28,311		—		—		—		—		28,311
Residential		1,569		70		—		2,523		257,138		261,300
Total real estate loans		367,308		1,055,410		664,561		33,731		262,591		2,383,601
Commercial and industrial loans		82,964		1,503		13,105		7,680		—		105,252
Equipment financing agreements		32,340		203,635		300,864		17,111		—		553,950
Loans receivable	$	482,612	$	1,260,548	$	978,530	$	58,522	$	262,591	$	3,042,803

The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses, with floating or variable interest rates (including hybrids), as of March 31, 2024.

	Within One Year		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	$	30,852	$	32,018	$	162,057	$	217,363	$	49,395	$	491,685
Hospitality		147,246		59,868		98,377		94,902		15,801		416,194
Office		28,927		78,508		58,653		21,239		7,082		194,409
Other		63,223		94,866		200,772		179,439		39,881		578,181
Total commercial property loans		270,248		265,260		519,859		512,943		112,159		1,680,469
Construction		35,126		38,788		1,991		—		—		75,905
Residential		3,624		—		133		1,767		703,538		709,062
Total real estate loans		308,998		304,048		521,983		514,710		815,697		2,465,436
Commercial and industrial loans		226,927		239,509		85,548		117,617		—		669,601
Loans receivable	$	535,925	$	543,557	$	607,531	$	632,327	$	815,697	$	3,135,037

Industry

As of March 31, 2024, the loan portfolio included the following concentrations of loans to one type of industry that were greater than 10.0% of loans receivable outstanding:

			Percentage of
	Balance as of		Loans Receivable
	March 31, 2024		Outstanding
	(in thousands)
Lessor of nonresidential buildings	$	1,718,496		27.8	%
Hospitality		744,054		12.0	%

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Loan Quality Indicators

Loans 30 to 89 days past due and still accruing were $15.8 million at March 31, 2024, compared with $10.3 million at December 31, 2023, attributable mainly to an increase of $2.7 million in past due residential loans and the addition of a $3.0 million commercial real estate industrial loan, offset by payoffs and other reductions of $0.2 million.

At March 31, 2024 and December 31, 2023, there were no loans 90 days or more past due and still accruing interest.

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

	Special Mention			Classified
	(in thousands)
March 31, 2024
Balance at January 1, 2024	$	65,315		$	31,367
Additions		671			3,631
Reductions		(3,670	)		(11,329	)
Balance at March 31, 2024	$	62,316		$	23,669
March 31, 2023
Balance at January 1, 2023	$	79,013		$	46,192
Additions		766			13,808
Reductions		(15,439	)		(12,713	)
Balance at March 31, 2023	$	64,340		$	47,287

Special mention loans were $62.3 million and $65.3 million at March 31, 2024 and December 31, 2023, respectively. The $3.0 million decrease included upgrades to pass loans of $1.5 million, downgrades to classified loans of $0.8 million, and paydowns and payoffs of $1.4 million, offset by downgrades from pass loans of $0.7 million. The upgrades to pass loans were primarily attributable to a $1.5 million retail loan and downgrades to classified consisted of two SBA commercial real estate retail loans for $0.8 million. The $14.7 million decrease in the first quarter of 2023 included downgrades to classified loans of $10.0 million, and payoffs of $4.6 million.

Classified loans were $23.7 million and $31.4 million at March 31, 2024 and December 31, 2023, respectively. The $7.7 million decrease was primarily driven by paydowns and payoffs of $9.4 million, and charge-offs of $1.9 million, offset by new downgrades to classified loans of $3.6 million. The paydowns and payoffs during the three months ended March 31, 2024 were mainly attributed to payoffs of a $4.7 million commercial real estate industrial loan and a $1.2 million commercial real estate office loan, and a $0.9 million paydown on a previously mentioned nonperforming commercial and industrial loan in the health-care industry. The $1.1 million increase in the first quarter of 2023 was primarily driven by the downgrade of one loan in the amount of $10.0 million, offset by loan upgrades of $8.8 million.

Nonperforming Assets

Nonperforming loans consist of nonaccrual loans 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, which generally occurs after sustained payment of six months. Interest income is recognized on the accrual basis for loans not meeting the criteria for nonaccrual. OREO consists of properties acquired by foreclosure or similar means.

Except for nonaccrual loans, management is not aware of any other loans as of March 31, 2024 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 repayment terms, or any known events that would result in a loan being designated as nonperforming at some future date.

Nonaccrual loans were $14.0 million and $15.5 million as of March 31, 2024 and December 31, 2023, respectively, representing a decrease of $1.5 million, or 9.4%. The decrease in nonaccrual loans resulted from payoffs, paydowns, and upgrades

48

of $4.8 million, offset by additions to nonperforming loans of $3.3 million. The additions to nonperforming loans consisted of equipment financing agreements of $2.6 million and two SBA loans for $0.7 million. As of March 31, 2024 and December 31, 2023, 1.25% of equipment financing agreements were on nonaccrual status. As of March 31, 2024 and December 31, 2023, all loans 90 days or more past due were classified as nonaccrual.

The $14.0 million of nonperforming loans as of March 31, 2024 had individually evaluated allowances of $5.3 million, compared to $15.5 million of nonperforming loans with individually evaluated allowances of $3.4 million as of December 31, 2023.

Nonperforming assets were $14.1 million at March 31, 2024, or 0.19% of total assets, compared to $15.6 million, or 0.21%, at December 31, 2023. Additionally, not included in nonperforming assets were repossessed personal property assets associated with equipment finance agreements of $1.3 million at March 31, 2024 and December 31, 2023.

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 are measured for expected credit losses based on the present value of expected cash flows discounted at the effective interest rate, the observable market price, or the fair value of collateral.

Individually evaluated loans were $14.0 million and $15.4 million as of March 31, 2024 and December 31, 2023, respectively, representing a decrease of $1.4 million, or 9.2%. Specific allowances associated with individually evaluated loans increased $1.9 million to $5.3 million as of March 31, 2024 compared with $3.4 million as of December 31, 2023, mainly attributed to a $1.9 million specific reserve allocation on a commercial and industrial loan in the health-care industry.

No loans were modified to borrowers with financial difficulties during the three months ended March 31, 2024 or 2023. A borrower is experiencing financial difficulties when there is a probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. The Company may modify loans to borrowers experiencing financial difficulties by providing principal forgiveness, a term extension, an other-than-insignificant payment delay, or an interest rate reduction.

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 March 31, 2024 and December 31, 2023 reflected losses expected over the remaining contractual life of assets based on historical, current, and forward-looking information. The contractual term does not consider extensions, renewals or modifications.

Management selected three loss methodologies for the collective allowance estimation. At March 31, 2024, 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 property, construction and residential property portfolios, and the Weighted Average Remaining Maturity (“WARM”) method to estimate expected credit losses for equipment financing agreements. Loans that do not share similar risk characteristics are individually evaluated for allowances.

For all 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. For each of these loan segments, the Company applied an annualized historical PD/LGD using all available historical periods. Since reasonable and supportable forecasts of economic conditions are embedded directly into the DCF model, qualitative adjustments are considered but were minimal.

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.

For loan pools utilizing the PD/LGD method, the Company used historical periods that included an economic downturn to derive historical losses for better alignment in the estimation of expected losses under the PD/LGD method. The Company relied on Frye-Jacobs modeled LGD rates for loan segments with insufficient historical loss data. The Frye-Jacobs model provides a means of applying an LGD rate in the event that limited to no loss data is available. The PD/LGD method incorporates a forecast into loss estimates using a qualitative adjustment.

The Company used the WARM method to estimate expected credit losses for the equipment financing agreements portfolio. The Company applied an expected loss ratio based on internal historical losses adjusted as appropriate for qualitative factors.

49

As of March 31, 2024 and December 31, 2023, the Company relied on the economic projections from Moody’s 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, delinquent and nonperforming loans and adversely-rated equipment financing agreements, and reasonable and supportable forecasts of economic conditions.

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:

	March 31, 2024										December 31, 2023
	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	$	10,095		14.8	%	$	1,091,059		17.7	%	$	10,264		14.8	%	$	1,107,360		17.9	%
Hospitality		11,668		17.1			740,160		12.0			15,534		22.4			740,519		12.0
Office		3,740		5.5			575,847		9.3			3,024		4.4			574,981		9.3
Other		8,270		12.1			1,367,395		22.1			8,663		12.4			1,366,534		22.1
Total commercial property loans		33,773		49.5			3,774,461		61.1			37,485		54.0			3,789,394		61.3
Construction		2,611		3.8			104,216		1.7			2,756		4.0			100,345		1.6
Residential		6,200		9.1			970,362		15.7			5,258		7.5			962,661		15.6
Total real estate loans		42,584		62.4			4,849,039		78.5			45,499		65.5			4,852,400		78.5
Commercial and industrial loans		11,836		17.3			774,851		12.5			10,257		14.8			747,819		12.1
Equipment financing agreements		13,850		20.3			553,950		9.0			13,706		19.7			582,215		9.4
Total	$	68,270		100.0	%	$	6,177,840		100.0	%	$	69,462		100.0	%	$	6,182,434		100.0	%

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

	As of
	March 31, 2024			December 31, 2023
	(dollars in thousands)
Ratios:
Allowance for credit losses to loans receivable		1.11	%		1.12	%
Nonaccrual loans to loans		0.23	%		0.25	%
Allowance for credit losses to nonaccrual loans		486.81	%		448.89	%
Balance:
Nonaccrual loans at end of period	$	14,024		$	15,474
Nonperforming loans at end of period	$	14,024		$	15,474

The allowance for credit losses was $68.3 million and $69.5 million at March 31, 2024 and December 31, 2023, respectively. The allowance attributed to individually evaluated loans was $5.3 million and $3.4 million as of March 31, 2024 and December 31, 2023, respectively. The allowance attributed to collectively evaluated loans was $63.0 million and $66.1 million as of March 31, 2024 and December 31, 2023, respectively, and considered the impact of changes in macroeconomic assumptions, normalized interest rate forecasts for the subsequent four quarters, and a net reduction in specific qualitative factors allocated to criticized hospitality loans impacted by the pandemic.

As of March 31, 2024 and December 31, 2023, the allowance for credit losses related to off-balance sheet items, primarily unfunded loan commitments, was $2.3 million and $2.5 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 March 31, 2024.

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The following table presents a summary of gross charge-offs and recoveries for the loan portfolio:

	Three Months Ended March 31,
	2024			2023
	(in thousands)
Gross charge-offs	$	(2,123	)	$	(2,238	)
Gross recoveries		527			783
Net (charge-offs) recoveries	$	(1,596	)	$	(1,455	)

For the three months ended March 31, 2024, gross charge-offs decreased $0.1 million from the same period in 2023. Gross recoveries, for the three months ended March 31, 2024 decreased $0.3 million from the same period in 2023. Gross charge-offs for the three months ended March 31, 2024 and 2023 primarily consisted of equipment financing agreements charge-offs of $2.0 million and $1.6 million, respectively.

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

	Three Months Ended
	Average Loans		Net (Charge-Offs) Recoveries			Net (Charge-Offs) Recoveries to Average Loans (1)
	(dollars in thousands)
March 31, 2024
Commercial real estate loans	$	3,875,439	$	46			0.00	%
Residential loans		978,908		—			—
Commercial and industrial loans		710,440		(97	)		(0.05	)
Equipment financing agreements		573,101		(1,545	)		(1.08	)
Total	$	6,137,888	$	(1,596	)		(0.10	)%
March 31, 2023
Commercial real estate loans	$	3,800,499	$	(412	)		(0.04	)%
Residential loans		780,833		68			0.03
Commercial and industrial loans		760,835		25			0.01
Equipment financing agreements		602,232		(1,136	)		(0.75	)
Total	$	5,944,399	$	(1,455	)		(0.10	)%

(1)Annualized

Net loan charge-offs were $1.6 million, or 0.10% of average loans, and $1.5 million, or 0.10% of average loans, for the three months ended March 31, 2024 and 2023, respectively.

Deposits

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

	March 31, 2024					December 31, 2023
	Balance		Percent			Balance		Percent
	(dollars in thousands)
Demand – noninterest-bearing	$	1,933,060		30.2	%	$	2,003,596		31.9	%
Interest-bearing:
Demand		87,374		1.4			87,452		1.4
Money market and savings		1,859,865		29.2			1,734,659		27.6
Uninsured amount of time deposits more than $250,000:
Three months or less		105,953		1.7			186,321		3.0
Over three months through six months		125,310		2.0			201,085		3.2
Over six months through twelve months		402,935		6.3			222,683		3.6
Over twelve months		38,706		0.6			70,932		1.1
All other insured time deposits		1,822,857		28.6			1,773,846		28.2
Total deposits	$	6,376,060		100.0	%	$	6,280,574		100.0	%

51

Total deposits were $6.38 billion and $6.28 billion as of March 31, 2024 and December 31, 2023, respectively, representing an increase of $95.5 million, or 1.5%. The increase in deposits was primarily driven by a $125.2 million increase in money market and savings deposits and a $40.9 million increase in time deposits, partially offset by a $70.5 decline in noninterest-bearing demand deposits. The changes in deposit composition were primarily due to the increase in deposit rates. At March 31, 2024, the loan-to-deposit ratio was 96.9% compared to 98.4% at December 31, 2023.

As of March 31, 2024, the aggregate amount of uninsured deposits (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) was $2.56 billion. The aggregate amount of uninsured time deposits was $672.9 million. Other uninsured deposits, such as demand and money market and savings deposits were $1.89 billion. In addition, $1.15 billion of total uninsured deposits were in accounts with balances of $5.0 million or more at March 31, 2024. As of December 31, 2023, the aggregate amount of uninsured deposits was $2.52 billion. The aggregate amount of uninsured time deposits was $681.0 million. Other uninsured deposits, such as demand, money market and savings deposits were $1.84 billion. In addition, $1.09 billion of total uninsured deposits were in accounts with balances of $5.0 million or more at December 31, 2023.

The Bank’s wholesale funds historically consisted of FHLB advances, brokered deposits as well as State of California time deposits. As of March 31, 2024 and December 31, 2023, the Bank had $172.5 million and $325.0 million of FHLB advances, and $43.3 million and $58.3 million of brokered deposits, respectively, and $120.0 million of State of California time deposits, as of March 31, 2024 and December 31, 2023.

Borrowings and Subordinated Debentures

Borrowings mostly take the form of FHLB advances. At March 31, 2024 and December 31, 2023, FHLB advances were $172.5 million and $325.0 million, respectively. FHLB open advances were $60.0 million and $212.5 million at March 31, 2024 and December 31, 2023, respectively. For the same periods, term advances were $112.5 million. Funds from deposit growth not used to fund loan production were used to pay off borrowings.

The weighted-average interest rate of all FHLB advances at March 31, 2024 and December 31, 2023 was 4.53% and 4.69%, respectively.

The FHLB maximum amount outstanding at any month end during each of the year-to-date periods ended March 31, 2024 and December 31, 2023 was $187.5 million and $450.0 million, respectively.

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

	March 31, 2024					December 31, 2023
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	$	25,000		4.44	%	$	12,500		1.90	%
Advances due over 24 months through 36 months		37,500		4.32			62,500		4.37
Outstanding advances over 12 months	$	62,500		4.37	%	$	75,000		3.96	%

52

Subordinated debentures were $130.2 million and $130.0 million as of March 31, 2024 and December 31, 2023, respectively. Subordinated debentures are comprised of fixed-to-floating subordinated notes of $108.4 million and $108.3 million as of March 31, 2024 and December 31, 2023, respectively, and junior subordinated deferrable interest debentures of $21.8 million and $21.7 million as of March 31, 2024 and December 31, 2023, respectively. See “Note 8 – Borrowings and Subordinated Debentures” to the consolidated financial statements for more details.

Stockholders' Equity

Stockholders’ equity was $703.1 million and $701.9 million as of March 31, 2024 and December 31, 2023, respectively. First quarter net income, net of $7.7 million of dividends paid, added $7.5 million to stockholders' equity for the period, which was partially offset by a $3.4 million increase in unrealized after-tax losses on securities available for sale due to changes in interest rates, and a $1.6 million increase in unrealized after-tax losses on cash flow hedges. In addition, the Company repurchased 100,000 shares of common stock during the quarter at an average share price of $15.92 for a total cost of $1.6 million. At March 31, 2024, 309,972 shares remain under the Company's share repurchase program.

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 March 31, 2024. 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
	1- to 12-Month Horizon						13- to 24-Month Horizon
Change in Interest	Dollar			Percentage			Dollar			Percentage
Rates (Basis Points)	Change			Change			Change			Change
	(dollars in thousands)
300	$	3,974			1.78	%	$	6,748			2.53	%
200	$	2,191			0.98	%	$	3,114			1.17	%
100	$	1,720			0.77	%	$	2,838			1.06	%
-100	$	(3,009	)		(1.35	%)	$	(5,793	)		(2.17	%)
-200	$	(7,338	)		(3.28	%)	$	(14,829	)		(5.56	%)
-300	$	(12,621	)		(5.64	%)	$	(26,885	)		(10.08	%)

	Economic Value of Equity (EVE)
Change in Interest	Dollar			Percentage
Rates (Basis Points)	Change			Change
	(dollars in thousands)
300	$	(13,191	)		(1.93	%)
200	$	(6,910	)		(1.01	%)
100	$	3,948			0.58	%
-100	$	(20,535	)		(3.01	%)
-200	$	(61,535	)		(9.01	%)
-300	$	(122,449	)		(17.93	%)

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.

53

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

Conditional prepayment rates*:
Loans receivable	15	%
Securities	6	%
Deposit rate betas*:
NOW, savings, money market demand	48	%
Time deposits, retail and wholesale	76	%
* 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.

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. The Company paid dividends of $7.7 million ($0.25 per share) for the three months ended March 31, 2024 and $30.5 million ($1.00 per share) for the year 2023. As of April 1, 2024, the Bank has the ability to pay dividends of approximately $161.0 million, after giving effect to the $0.25 dividend declared on April 25, 2024, for the second quarter of 2024, without the prior approval of the Commissioner of the DFPI.

At March 31, 2024, the Bank’s total risk-based capital ratio of 14.50%, Tier 1 risk-based capital ratio of 13.44%, common equity Tier 1 capital ratio of 13.44% and Tier 1 leverage capital ratio of 11.29% 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%, Tier 1 risk-based capital ratio equal to or greater than 8.00%, common equity Tier 1 capital ratios equal to or greater than 6.50%, and Tier 1 leverage capital ratio equal to or greater than 5.00%.

At March 31, 2024, the Company's total risk-based capital ratio was 15.20%, Tier 1 risk-based capital ratio was 12.40%, common equity Tier 1 capital ratio was 12.05% and Tier 1 leverage capital ratio was 10.36%.

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 2023 Annual Report on Form 10-K.

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 2023 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 2023 Annual Report on Form 10-K.

Contractual Obligations

There have been no material changes to the contractual obligations described in our 2023 Annual Report on Form 10-K.

54

Item 3. Quantitative and Qualitative Disclosures about Market Risk

For quantitative and qualitative disclosures regarding market risks, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk Management” 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 March 31, 2024.

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 March 31, 2024 that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

55

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, 2023.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

On January 24, 2019, the Company announced a stock repurchase program that authorized the repurchase of up to 5% of its outstanding shares or approximately 1.5 million shares of common stock. As of March 31, 2024, 309,972 shares remained available for future purchases under that stock repurchase program. The program has no scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time.

As disclosed in Note 16, “Subsequent Events,” on April 25, 2024, the Company announced that the Board of Directors has adopted a new stock repurchase program under which the Company may repurchase up to 5% of its outstanding shares, or approximately 1.5 million shares of its common stock. The program has no scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time.

The following table represents information with respect to repurchases of common stock made by the Company during the three months ended March 31, 2024:

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
January 1, 2024 - January 31, 2024	$	17.19		7,000		402,972
February 1, 2024 - February 29, 2024		15.82		93,000		309,972
March 1, 2024 - March 31, 2024		—		—		309,972
Total	$	15.92		100,000		309,972

The Company acquired 31,546 shares from employees in connection with the satisfaction of employee tax withholding obligations incurred through the vesting of Company stock awards for the three months ended March 31, 2024. 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.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Securities Trading Plans of Directors and Executive Officers

During the three months ended March 31, 2024, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Hanmi securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”

56

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 With Embedded Linkbase Documents *
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, 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.

57

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:	May 3, 2024	By:	/s/ Bonita I. Lee
			Bonita I. Lee
			President and Chief Executive Officer (Principal Executive Officer)

Date:	May 3, 2024	By:	/s/ Romolo C. Santarosa
			Romolo C. Santarosa
			Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)

58

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:	May 3, 2024	/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:	May 3, 2024	/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 March 31, 2024, 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:	May 3, 2024	/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 March 31, 2024, 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:	May 3, 2024	/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.

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	Apr. 23, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
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		30,387,062
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	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 256,038	$ 302,324
Securities available for sale, at fair value (amortized cost of $978,580 and $967,031 as of March 31, 2024 and December 31, 2023, respectively)	872,190	865,739
Loans held for sale, at the lower of cost or fair value	3,999	12,013
Loans receivable, net of allowance for credit losses of $68,270 and $69,462 as of March 31, 2024 and December 31, 2023, respectively	6,109,570	6,112,972
Accrued interest receivable	23,032	23,371
Premises and equipment, net	21,952	21,959
Customers' liability on acceptances	161	625
Servicing assets	6,890	7,070
Goodwill and other intangible assets, net	11,074	11,099
Federal Home Loan Bank ("FHLB") stock, at cost	16,385	16,385
Income tax assets	35,863	35,226
Bank-owned life insurance	56,639	56,335
Prepaid expenses and other assets	98,253	105,223
Total assets	7,512,046	7,570,341
Deposits:
Noninterest-bearing	1,933,060	2,003,596
Interest-bearing	4,443,000	4,276,978
Total deposits	6,376,060	6,280,574
Accrued interest payable	38,007	39,306
Bank's liability on acceptances	161	625
Borrowings	172,500	325,000
Subordinated debentures ($136,800 and $136,800 face amount less unamortized discount and debt issuance costs of $6,635 and $6,788 as of March 31, 2024 and December 31, 2023, respectively)	130,165	130,012
Accrued expenses and other liabilities	92,053	92,933
Total liabilities	6,808,946	6,868,450
Stockholders' equity:
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of March 31, 2024 and December 31, 2023
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 33,957,284 shares (30,276,358 shares outstanding) and 33,918,035 shares (30,368,655 shares outstanding) as of March 31, 2024 and December 31, 2023, respectively	34	34
Additional paid-in capital	587,687	586,912
Accumulated other comprehensive loss, net of tax benefit of $31,401 and $29,058 as of March 31, 2024 and December 31, 2023, respectively	(76,890)	(71,928)
Retained earnings	326,526	319,048
Less treasury stock; 3,680,926 shares and 3,549,380 shares as of March 31, 2024 and December 31, 2023, respectively	(134,257)	(132,175)
Total stockholders' equity	703,100	701,891
Total liabilities and stockholders' equity	$ 7,512,046	$ 7,570,341

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Amortized cost of securities available for sale	$ 978,580	$ 967,031
Loans receivable, allowance for credit losses	68,270	69,462
Face amount of subordinated debentures	136,800	136,800
Unamortized discount and debt issuance costs	$ 6,635	$ 6,788
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)	33,957,284	33,918,035
Common stock outstanding (shares)	30,276,358	30,368,655
Accumulated other comprehensive (loss) income, tax benefit	$ 31,401	$ 29,058
Treasury stock (shares)	3,680,926	3,549,380

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Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest and dividend income:
Interest and fees on loans receivable	$ 91,674	$ 80,923
Interest on securities	4,955	4,025
Dividends on FHLB stock	361	289
Interest on deposits in other banks	2,604	2,066
Total interest and dividend income	99,594	87,303
Interest expense:
Interest on deposits	45,638	25,498
Interest on borrowings	1,655	2,369
Interest on subordinated debentures	1,646	1,583
Total interest expense	48,939	29,450
Net interest income before credit loss expense	50,655	57,853
Credit loss expense	227	2,133
Net interest income after credit loss expense	50,428	55,720
Noninterest income:
Service charges on deposit accounts	2,450	2,579
Trade finance and other service charges and fees	1,414	1,258
Gain on sale of Small Business Administration ("SBA") loans	1,482	1,869
Other operating income	2,387	2,630
Total noninterest income	7,733	8,336
Noninterest expense:
Salaries and employee benefits	21,585	20,610
Occupancy and equipment	4,537	4,412
Data processing	3,551	3,253
Professional fees	1,893	1,335
Supplies and communications	601	676
Advertising and promotion	907	833
Other operating expenses	3,371	1,672
Total noninterest expense	36,445	32,791
Income before tax	21,716	31,265
Income tax expense	6,552	9,274
Net income	$ 15,164	$ 21,991
Basic earnings per share	$ 0.5	$ 0.72
Diluted earnings per share	$ 0.5	$ 0.72
Weighted-average shares outstanding:
Basic	30,119,646	30,347,325
Diluted	30,119,646	30,430,745

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Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 15,164	$ 21,991
Unrealized gain (loss):
Unrealized holding gain (loss) on available for sale securities	(5,098)	13,607
Unrealized gain (loss) on cash flow hedges	(2,207)
Unrealized gain (loss)	(7,305)	13,607
Income tax benefit (expense) related to other comprehensive income items	2,343	(3,681)
Other comprehensive income (loss), net of tax	(4,962)	9,926
Total comprehensive income	$ 10,202	$ 31,917

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock - Number of Shares, Shares Issued	Treasury Stock, Common [Member]	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Balance at beginning of period at Dec. 31, 2022	$ 637,515	$ 33	$ (126,485)	$ 583,410	$ (88,985)	$ 269,542
Beginning balance, shares issued (shares) at Dec. 31, 2022		33,708,234
Beginning balance, treasury stock (shares) at Dec. 31, 2022			(3,222,613)
Beginning balance, shares outstanding (shares) at Dec. 31, 2022		30,485,621
Stock options exercised	(181)		$ (1,003)	822
Stock options exercised (shares)		50,000
Stock options exercised, treasury stock (shares)			(35,273)
Stock options exercised, shares outstanding (shares)		14,727
Issuance of awards pursuant to equity incentive plans, net of forfeitures (shares)		69,567
Share-based compensation expense	652			652
Shares surrendered to satisfy tax liability upon vesting of equity awards	(115)		$ (115)
Shares surrendered to satisfy tax liability upon vesting of equity awards (shares)		(11,392)	(11,392)
Repurchase of common stock (shares)		(3,236)	(3,236)
Cash dividends paid (common stock, $0.25/share, $0.25/share)	(7,623)					(7,623)
Net income	21,991					21,991
Change in unrealized gain (loss) on securities available for sale, net of income taxes	9,926				9,926
Balance at end of period at Mar. 31, 2023	662,165	$ 33	$ (127,603)	584,884	(79,059)	283,910
Ending balance, shares issued (shares) at Mar. 31, 2023		33,827,801
Ending balance, treasury stock (shares) at Mar. 31, 2023			3,272,514
Ending balance, shares outstanding (shares) at Mar. 31, 2023		30,555,287
Balance at beginning of period at Dec. 31, 2023	$ 701,891	$ 34	$ (132,175)	586,912	(71,928)	319,048
Beginning balance, shares issued (shares) at Dec. 31, 2023		33,918,035
Beginning balance, treasury stock (shares) at Dec. 31, 2023	(3,549,380)		(3,549,380)
Beginning balance, shares outstanding (shares) at Dec. 31, 2023		30,368,655
Issuance of awards pursuant to equity incentive plans, net of forfeitures (shares)		39,249
Share-based compensation expense	$ 775			775
Shares surrendered to satisfy tax liability upon vesting of equity awards	(490)		$ (490)
Shares surrendered to satisfy tax liability upon vesting of equity awards (shares)		(31,546)	(31,546)
Repurchase of common stock	(1,592)		$ (1,592)
Repurchase of common stock (shares)		(100,000)	(100,000)
Cash dividends paid (common stock, $0.25/share, $0.25/share)	(7,686)					(7,686)
Net income	15,164					15,164
Change in unrealized gain (loss) on securities available for sale, net of income taxes	(3,394)				(3,394)
Change in unrealized gain (loss) on cash flow hedge, net of income taxes	(1,568)				(1,568)
Balance at end of period at Mar. 31, 2024	$ 703,100	$ 34	$ (134,257)	$ 587,687	$ (76,890)	$ 326,526
Ending balance, shares issued (shares) at Mar. 31, 2024		33,957,284
Ending balance, treasury stock (shares) at Mar. 31, 2024	(3,680,926)		(3,680,926)
Ending balance, shares outstanding (shares) at Mar. 31, 2024		30,276,358

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Common stock (in usd per share)	$ 0.25	$ 0.25

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 15,164	$ 21,991
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,604	1,742
Amortization of servicing assets - net	694	634
Share-based compensation expense	775	652
Credit loss expense	227	2,133
Gain on sales of SBA loans	(1,482)	(1,869)
Origination of SBA loans held for sale	(17,632)	(25,316)
Proceeds from sales of SBA loans	26,555	30,954
Gain on sales of mortgage loans	(443)
Change in bank-owned life insurance	(304)	(270)
Change in prepaid expenses and other assets	5,564	(3,000)
Change in income tax assets	1,707	8,585
Valuation adjustment on servicing assets		(384)
Change in accrued interest payable and other liabilities	(2,446)	276
Net cash provided by operating activities	29,983	36,128
Cash flows from investing activities:
Purchases of securities available for sale	(38,424)	(29,504)
Proceeds from matured, called and repayment of securities	26,233	17,499
Purchases of loans receivable	(10,198)
Proceeds from sales of mortgage loans	30,427
Purchases of premises and equipment	(794)	(617)
Change in loans receivable, excluding purchases	(16,729)	(14,773)
Net cash used in investing activities	(9,485)	(27,395)
Cash flows from financing activities:
Change in deposits	95,486	32,966
Change in borrowings	(152,500)
Proceeds from exercise of stock options		822
Cash paid for employee vested shares surrendered due to employee tax liability	(490)	(1,118)
Repurchase of common stock	(1,594)
Cash dividends paid	(7,686)	(7,623)
Net cash provided by (used in) financing activities	(66,784)	25,047
Net increase (decrease) in cash and due from banks	(46,286)	33,780
Cash and due from banks at beginning of year	302,324	352,421
Cash and due from banks at end of period	256,038	386,201
Supplemental disclosures of cash flow information:
Interest paid	50,238	16,730
Income taxes paid	175	334
Non-cash activities:
Income tax benefit (expense) related to other comprehensive income items	2,343	(3,681)
Change in right-of-use asset obtained in exchange for lease liability	$ (1,873)	$ (145)

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 15,164	$ 21,991

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Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2024

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 period ended March 31, 2024. 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. Operating results for the three-month period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ended December 31, 2024 or for any other period. The interim information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 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.

Recently Issued Accounting Standards Not Yet Effective

Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures: In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09 to enhance the transparency and usefulness of income tax disclosures primarily related to income tax rate reconciliation and income taxes information. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-09 is not expected to have material effect on the Company’s operating results or financial condition.

ASU 2023-07, Segment Reporting (Topic 280): Segment Reporting: In November 2023, FASB issued ASU 2023-07 to provide updates that improve reportable segment disclosure requirements, primarily through enhanced disclosures on significant segment expenses. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-07 is not expected to have material effect on the Company’s operating results or financial condition.

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Securities

3 Months Ended

Mar. 31, 2024

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)
March 31, 2024
U.S. Treasury securities	$	88,407	$	21	$	(1,124	)	$	87,304
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		489,714		226		(65,267	)		424,673
Mortgage-backed securities - commercial		59,603		—		(12,383	)		47,220
Collateralized mortgage obligations		131,756		107		(10,128	)		121,735
Debt securities		132,236		—		(7,420	)		124,816
Total U.S. government agency and sponsored agency obligations		813,309		333		(95,198	)		718,444
Municipal bonds-tax exempt		76,864		—		(10,422	)		66,442
Total securities available for sale	$	978,580	$	354	$	(106,744	)	$	872,190
December 31, 2023
U.S. Treasury securities	$	86,355	$	173	$	(1,040	)	$	85,488
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		504,544		481		(62,697	)		442,328
Mortgage-backed securities - commercial		59,973		—		(11,982	)		47,991
Collateralized mortgage obligations		106,823		237		(9,649	)		97,411
Debt securities		132,215		—		(7,590	)		124,625
Total U.S. government agency and sponsored agency obligations		803,555		718		(91,918	)		712,355
Municipal bonds-tax exempt		77,121		—		(9,225	)		67,896
Total securities available for sale	$	967,031	$	891	$	(102,183	)	$	865,739

The amortized cost and estimated fair value of securities as of March 31, 2024 and December 31, 2023, 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.

	March 31, 2024				December 31, 2023
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	76,125	$	75,255	$	62,521	$	61,828
Over one year through five years		156,571		148,475		169,176		160,983
Over five years through ten years		90,497		82,423		83,720		77,608
Over ten years		655,387		566,037		651,614		565,320
Total	$	978,580	$	872,190	$	967,031	$	865,739

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 March 31, 2024 or December 31, 2023, 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)
March 31, 2024
U.S. Treasury securities	$	(159	)	$	43,837		13	$	(965	)	$	31,489		11	$	(1,124	)	$	75,326		24
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(88	)		16,344		8		(65,179	)		395,536		118		(65,267	)		411,880		126
Mortgage-backed securities - commercial		—			—		—		(12,383	)		47,220		15		(12,383	)		47,220		15
Collateralized mortgage obligations		(268	)		38,790		10		(9,860	)		63,898		25		(10,128	)		102,688		35
Debt securities		—			—		—		(7,420	)		124,816		26		(7,420	)		124,816		26
Total U.S. government agency and sponsored agency obligations		(356	)		55,134		18		(94,842	)		631,470		184		(95,198	)		686,604		202
Municipal bonds-tax exempt		—			—		—		(10,422	)		66,442		19		(10,422	)		66,442		19
Total	$	(515	)	$	98,971		31	$	(106,229	)	$	729,401		214	$	(106,744	)	$	828,372		245
December 31, 2023
U.S. Treasury securities	$	(57	)	$	21,024		7	$	(983	)	$	32,449		11	$	(1,040	)	$	53,473		18
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(11	)		2,324		5		(62,686	)		411,417		118		(62,697	)		413,741		123
Mortgage-backed securities - commercial		—			—		—		(11,982	)		47,991		15		(11,982	)		47,991		15
Collateralized mortgage obligations		(38	)		7,074		2		(9,611	)		63,610		24		(9,649	)		70,684		26
Debt securities		—			—		—		(7,590	)		124,625		26		(7,590	)		124,625		26
Total U.S. government agency and sponsored agency obligations		(49	)		9,398		7		(91,869	)		647,643		183		(91,918	)		657,041		190
Municipal bonds-tax exempt		—			—		—		(9,225	)		67,896		19		(9,225	)		67,896		19
Total	$	(106	)	$	30,422		14	$	(102,077	)	$	747,988		213	$	(102,183	)	$	778,410		227

The Company evaluates its available for sale securities portfolio for impairment on a quarterly basis. The Company did not recognize unrealized losses in income because it has the ability and the intent to hold and does not expect to be required to sell these securities until the recovery of their cost basis. The quarterly impairment 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 March 31, 2024, the Company determined that no credit losses were 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.

Securities available for sale with market values of $23.8 million and $24.8 million as of March 31, 2024 and December 31, 2023, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.

At March 31, 2024, 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% of shareholders’ equity.

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Loans

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Loans

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:

	March 31, 2024			December 31, 2023
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,091,059		$	1,107,360
Hospitality		740,160			740,519
Office		575,847			574,981
Other (1)		1,367,395			1,366,534
Total commercial property loans		3,774,461			3,789,394
Construction		104,216			100,345
Residential (2)		970,362			962,661
Total real estate loans		4,849,039			4,852,400
Commercial and industrial loans (3)		774,851			747,819
Equipment financing agreements		553,950			582,215
Loans receivable		6,177,840			6,182,434
Allowance for credit losses		(68,270	)		(69,462	)
Loans receivable, net	$	6,109,570		$	6,112,972

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

(2)Includes $1.5 million and $1.9 million of home equity loans and lines, and $5.3 million and $4.5 million of personal loans at March 31, 2024 and December 31, 2023, respectively.

(3)At March 31, 2024 and December 31, 2023, Paycheck Protection Program loans were $0.1 million and $0.2 million, respectively.

Accrued interest on loans was $19.5 million and $19.8 million at March 31, 2024 and December 31, 2023, respectively.

At March 31, 2024 and December 31, 2023, loans with carrying values of $2.45 billion and $2.36 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 following periods:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
Three months ended March 31, 2024
Balance at beginning of period	$	8,792		$	3,221		$	12,013
Originations and transfers		9,614			8,018			17,632
Sales		(16,900	)		(8,687	)		(25,587	)
Principal paydowns and amortization		(52	)		(7	)		(59	)
Balance at end of period	$	1,454		$	2,545		$	3,999
Three months ended March 31, 2023
Balance at beginning of period	$	3,775		$	4,268		$	8,043
Originations and transfers		16,387			8,929			25,316
Sales		(19,781	)		(9,918	)		(29,699	)
Principal paydowns and amortization		(2	)		(6	)		(8	)
Balance at end of period	$	379		$	3,273		$	3,652

The following table presents loans purchased by portfolio segment for the following periods:

	Three Months Ended
	March 31,
	2024		2023
	(in thousands)
Commercial real estate	$	274	$	—
Commercial and industrial		9,924		—
Residential real estate		—		—
Total	$	10,198	$	—

Allowance for Credit Losses

The following table details the information on the allowance for credit losses by portfolio segment for the following periods:

	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
Three months ended March 31, 2024
Balance at beginning of period	$	45,499		$	10,257		$	13,706			69,462
Charge-offs		—			(155	)		(1,968	)		(2,123	)
Recoveries		46			58			423			527
Credit loss expense (recovery)		(2,961	)		1,676			1,689			404
Ending balance	$	42,584		$	11,836		$	13,850		$	68,270
Three months ended March 31, 2023
Balance at beginning of period	$	44,026		$	15,267		$	12,230		$	71,523
Charge-offs		(412	)		(210	)		(1,616	)		(2,238	)
Recoveries		68			235			480			783
Credit loss expense (recovery)		(151	)		41			2,291			2,181
Ending balance	$	43,531		$	15,333		$	13,385		$	72,249

The table below presents the allowance for credit losses by portfolio segment as a percentage of the total allowance for credit losses and loans by portfolio segment as a percentage of the aggregate investment of loans receivable as of:

	March 31, 2024										December 31, 2023
	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	$	10,095		14.8	%	$	1,091,059		17.7	%	$	10,264		14.8	%	$	1,107,360		17.9	%
Hospitality		11,668		17.1			740,160		12.0			15,534		22.4			740,519		12.0
Office		3,740		5.5			575,847		9.3			3,024		4.4			574,981		9.3
Other		8,270		12.1			1,367,395		22.1			8,663		12.4			1,366,534		22.1
Total commercial property loans		33,773		49.5			3,774,461		61.1			37,485		54.0			3,789,394		61.3
Construction		2,611		3.8			104,216		1.7			2,756		4.0			100,345		1.6
Residential		6,200		9.1			970,362		15.7			5,258		7.5			962,661		15.6
Total real estate loans		42,584		62.4			4,849,039		78.5			45,499		65.5			4,852,400		78.5
Commercial and industrial loans		11,836		17.3			774,851		12.5			10,257		14.8			747,819		12.1
Equipment financing agreements		13,850		20.3			553,950		9.0			13,706		19.7			582,215		9.4
Total	$	68,270		100.0	%	$	6,177,840		100.0	%	$	69,462		100.0	%	$	6,182,434		100.0	%

The following table represents the amortized cost basis of collateral-dependent loans by class of loans, for which repayment is expected to be obtained through the sale of the underlying collateral, as of:

	March 31, 2024		December 31, 2023
	(in thousands)
Real estate loans:
Commercial property
Retail	$	—	$	1,530
Hospitality		299		338
Other		2,147		305
Total commercial property loans		2,446		2,173
Residential		—		1
Total real estate loans		2,446		2,174
Commercial and industrial loans		3,927		5,178
Total	$	6,373	$	7,352

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 1 to 8) for each loan in our portfolio. Third-party loan reviews are conducted annually on a sample 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 (1-4), 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)
	2024		2023		2022		2021		2020			Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
March 31, 2024
Real estate loans:
Commercial property
Risk Rating							`
Pass / Pass-Watch	$	109,310	$	614,621	$	978,263	$	847,463	$	567,561		$	578,221		$	46,941		$	3,742,380
Special Mention		4,399		—		3,979		3,252		5,628			967			1,409			19,634
Classified		1,573		—		1,197		—		—			9,677			—			12,447
Total commercial property		115,282		614,621		983,439		850,715		573,189			588,865			48,350			3,774,461
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Construction
Risk Rating
Pass / Pass-Watch		49,902		26,003		—		—		—			—			—			75,905
Special Mention		—		—		—		28,311		—			—			—			28,311
Classified		—		—		—		—		—			—			—			—
Total construction		49,902		26,003		—		28,311		—			—			—			104,216
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Residential
Risk Rating
Pass / Pass-Watch		52,132		256,261		369,965		156,338		12,510			117,129			5,777			970,112
Special Mention		—		—		—		—		—			—			250			250
Classified		—		—		—		—		—			—			—			—
Total residential		52,132		256,261		369,965		156,338		12,510			117,129			6,027			970,362
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Total real estate loans
Risk Rating
Pass / Pass-Watch		211,344		896,885		1,348,228		1,003,801		580,071			695,350			52,718			4,788,397
Special Mention		4,399		—		3,979		31,563		5,628			967			1,659			48,195
Classified		1,573		—		1,197		—		—			9,677			—			12,447
Total real estate loans		217,316		896,885		1,353,404		1,035,364		585,699			705,994			54,377			4,849,039
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		97,014		98,018		161,227		76,197		17,368			19,615			287,010			756,449
Special Mention		403		—		13,595		—		99			24			—			14,121
Classified		—		—		96		—		—			258			3,927			4,281
Total commercial and industrial loans		97,417		98,018		174,918		76,197		17,467			19,897			290,937			774,851
YTD gross charge-offs		—		—		126		—		—			29			—			155
YTD net charge-offs (recoveries)		—		—		126		—		—			5			(34	)		97
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		35,518		198,213		190,684		88,306		19,607			14,681			—			547,009
Special Mention		—		—		—		—		—			—			—			—
Classified		—		846		3,613		1,729		216			537			—			6,941
Total equipment financing agreements		35,518		199,059		194,297		90,035		19,823			15,218			—			553,950
YTD gross charge-offs		—		19		1,364		400		170			15			—			1,968
YTD net charge-offs (recoveries)		—		19		1,207		310		164			(155	)		—			1,545
Total loans receivable:
Risk Rating
Pass / Pass-Watch		343,876		1,193,116		1,700,139		1,168,304		617,046			729,646			339,728			6,091,855
Special Mention		4,802		—		17,574		31,563		5,727			991			1,659			62,316
Classified		1,573		846		4,906		1,729		216			10,472			3,927			23,669
Total loans receivable	$	350,251	$	1,193,962	$	1,722,619	$	1,201,596	$	622,989		$	741,109		$	345,314		$	6,177,840
YTD gross charge-offs		—		19		1,490		400		170			44			—			2,123
YTD net charge-offs (recoveries)		—		19		1,333		310		159			(191	)		(34	)		1,596

(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)
	2023		2022		2021			2020		2019		Prior			Revolving Loans Amortized Cost Basis			Total
December 31, 2023
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	683,819	$	986,822	$	858,821		$	572,950	$	378,067	$	238,400		$	30,236		$	3,749,115
Special Mention		4,400		3,997		3,271			5,670		711		2,310			1,406			21,765
Classified		3,065		1,080		4,899			—		5,578		3,892			—			18,514
Total commercial property		691,284		991,899		866,991			578,620		384,356		244,602			31,642			3,789,394
YTD gross charge-offs		—		—		—			411		—		216			—			627
YTD net charge-offs (recoveries)		—		—		—			403		—		(81	)		—			322
Construction
Risk Rating
Pass / Pass-Watch		72,039		—		—			—		—		—			—			72,039
Special Mention		—		—		28,306			—		—		—			—			28,306
Classified		—		—		—			—		—		—			—			—
Total construction		72,039		—		28,306			—		—		—			—			100,345
YTD gross charge-offs		—		—		—			—		—		—			—			—
YTD net charge-offs (recoveries)		—		—		—			—		—		—			—			—
Residential
Risk Rating
Pass / Pass-Watch		290,196		375,712		158,618			12,656		217		119,736			5,025			962,160
Special Mention		—		—		—			—		—		—			500			500
Classified		—		—		—			—		—		1			—			1
Total residential		290,196		375,712		158,618			12,656		217		119,737			5,525			962,661
YTD gross charge-offs		—		—		—			—		—		—			—			—
YTD net charge-offs (recoveries)		—		—		—			—		—		(7	)		—			(7	)
Total real estate loans
Risk Rating
Pass / Pass-Watch		1,046,054		1,362,534		1,017,439			585,606		378,284		358,136			35,261			4,783,314
Special Mention		4,400		3,997		31,577			5,670		711		2,310			1,906			50,571
Classified		3,065		1,080		4,899			—		5,578		3,893			—			18,515
Total real estate loans		1,053,519		1,367,611		1,053,915			591,276		384,573		364,339			37,167			4,852,400
YTD gross charge-offs		—		—		—			411		—		216			—			627
YTD net charge-offs (recoveries)		—		—		—			403		—		(88	)		—			315
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		177,864		169,209		84,198			31,348		9,971		12,920			242,044			727,554
Special Mention		—		14,578		—			102		—		65			(1	)		14,744
Classified		329		—		—			—		79		174			4,939			5,521
Total commercial and industrial loans		178,193		183,787		84,198			31,450		10,050		13,159			246,982			747,819
YTD gross charge-offs		—		17		—			—		110		410			6,120			6,657
YTD net charge-offs (recoveries)		—		5		(7	)		—		101		(6,621	)		6,090			(432	)
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		215,670		211,228		101,622			24,340		18,832		3,192			—			574,884
Special Mention		—		—		—			—		—		—			—			—
Classified		392		4,171		1,945			365		401		57			—			7,331
Total equipment financing agreements		216,062		215,399		103,567			24,705		19,233		3,249			—			582,215
YTD gross charge-offs		178		3,944		3,267			386		799		232			—			8,806
YTD net charge-offs (recoveries)		178		3,744		2,858			244		250		(114	)		—			7,160
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,439,588		1,742,971		1,203,259			641,294		407,087		374,248			277,305			6,085,752
Special Mention		4,400		18,575		31,577			5,772		711		2,375			1,905			65,315
Classified		3,786		5,251		6,844			365		6,058		4,124			4,939			31,367
Total loans receivable	$	1,447,774	$	1,766,797	$	1,241,680		$	647,431	$	413,856	$	380,747		$	284,149		$	6,182,434
YTD gross charge-offs		178		3,961		3,267			797		909		858			6,120			16,090
YTD net charge-offs (recoveries)		178		3,749		2,851			647		351		(6,823	)		6,090			7,043

(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)
	2024		2023		2022		2021		2020			Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
March 31, 2024
Real estate loans:
Commercial property
Payment performance
Performing	$	113,709	$	614,621	$	983,314	$	850,715	$	573,189		$	587,509		$	48,350		$	3,771,407
Nonperforming		1,573		—		125		—		—			1,356			—			3,054
Total commercial property		115,282		614,621		983,439		850,715		573,189			588,865			48,350			3,774,461
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Construction
Payment performance
Performing		49,902		26,003		—		28,311		—			—			—			104,216
Nonperforming		—		—		—		—		—			—			—			—
Total construction		49,902		26,003		—		28,311		—			—			—			104,216
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Residential
Payment performance
Performing		52,132		256,261		369,965		156,338		12,510			117,129			6,027			970,362
Nonperforming		—		—		—		—		—			—			—			—
Total residential		52,132		256,261		369,965		156,338		12,510			117,129			6,027			970,362
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Total real estate loans
Payment performance
Performing		215,743		896,885		1,353,279		1,035,364		585,699			704,638			54,377			4,845,985
Nonperforming		1,573		—		125		—		—			1,356			—			3,054
Total real estate loans		217,316		896,885		1,353,404		1,035,364		585,699			705,994			54,377			4,849,039
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Commercial and industrial loans:
Payment performance
Performing		97,417		98,018		174,904		76,197		17,467			19,809			287,010			770,822
Nonperforming		—		—		14		—		—			88			3,927			4,029
Total commercial and industrial loans		97,417		98,018		174,918		76,197		17,467			19,897			290,937			774,851
YTD gross charge-offs		—		—		126		—		—			29			—			155
YTD net charge-offs (recoveries)		—		—		126		—		—			5			(34	)		97
Equipment financing agreements:
Payment performance
Performing		35,518		198,213		190,684		88,306		19,607			14,681			—			547,009
Nonperforming		—		846		3,613		1,729		216			537			—			6,941
Total equipment financing agreements		35,518		199,059		194,297		90,035		19,823			15,218			—			553,950
YTD gross charge-offs		—		19		1,364		400		170			15			—			1,968
YTD net charge-offs (recoveries)		—		19		1,207		310		164			(155	)		—			1,545
Total loans receivable:
Payment performance
Performing		348,678		1,193,116		1,718,867		1,199,867		622,773			739,128			341,387			6,163,816
Nonperforming		1,573		846		3,752		1,729		216			1,981			3,927			14,024
Total loans receivable	$	350,251	$	1,193,962	$	1,722,619	$	1,201,596	$	622,989		$	741,109		$	345,314		$	6,177,840
YTD gross charge-offs		—		19		1,490		400		170			44			—			2,123
YTD net charge-offs (recoveries)		—		19		1,333		310		159			(191	)		(34	)		1,596

(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)
	2023		2022		2021			2020		2019		Prior			Revolving Loans Amortized Cost Basis		Total
December 31, 2023
Real estate loans:
Commercial property
Payment performance
Performing	$	689,449	$	991,899	$	866,841		$	578,620	$	384,275	$	243,819		$	31,642	$	3,786,545
Nonperforming		1,835		—		150			—		81		783			—		2,849
Total commercial property		691,284		991,899		866,991			578,620		384,356		244,602			31,642		3,789,394
YTD gross charge-offs		—		—		—			411		—		216			—		627
YTD net charge-offs (recoveries)		—		—		—			403		—		(81	)		—		322
Construction
Payment performance
Performing		72,039		—		28,306			—		—		—			—		100,345
Nonperforming		—		—		—			—		—		—			—		—
Total construction		72,039		—		28,306			—		—		—			—		100,345
YTD gross charge-offs		—		—		—			—		—		—			—		—
YTD net charge-offs (recoveries)		—		—		—			—		—		—			—		—
Residential
Payment performance
Performing		290,196		375,712		158,618			12,656		217		119,736			5,525		962,660
Nonperforming		—		—		—			—		—		1			—		1
Total residential		290,196		375,712		158,618			12,656		217		119,737			5,525		962,661
YTD gross charge-offs		—		—		—			—		—		—			—		—
YTD net charge-offs (recoveries)		—		—		—			—		—		(7	)		—		(7	)
Total real estate loans
Payment performance
Performing		1,051,684		1,367,611		1,053,765			591,276		384,492		363,555			37,167		4,849,550
Nonperforming		1,835		—		150			—		81		784			—		2,850
Total real estate loans		1,053,519		1,367,611		1,053,915			591,276		384,573		364,339			37,167		4,852,400
YTD gross charge-offs		—		—		—			411		—		216			—		627
YTD net charge-offs (recoveries)		—		—		—			403		—		(88	)		—		315
Commercial and industrial loans:
Payment performance
Performing		177,864		183,787		84,198			31,415		10,050		13,066			242,134		742,514
Nonperforming		329		—		—			35		—		93			4,848		5,305
Total commercial and industrial loans		178,193		183,787		84,198			31,450		10,050		13,159			246,982		747,819
YTD gross charge-offs		—		17		—			—		110		410			6,120		6,657
YTD net charge-offs (recoveries)		—		5		(7	)		—		101		(6,621	)		6,090		(432	)
Equipment financing agreements:
Payment performance
Performing		215,670		211,228		101,622			24,340		18,844		3,192			—		574,896
Nonperforming		392		4,171		1,945			365		389		57			—		7,319
Total equipment financing agreements		216,062		215,399		103,567			24,705		19,233		3,249			—		582,215
YTD gross charge-offs		178		3,944		3,267			386		799		232			—		8,806
YTD net charge-offs (recoveries)		178		3,744		2,858			244		250		(114	)		—		7,160
Total loans receivable:
Payment performance
Performing		1,445,218		1,762,626		1,239,585			647,031		413,386		379,813			279,301		6,166,960
Nonperforming		2,556		4,171		2,095			400		470		934			4,848		15,474
Total loans receivable	$	1,447,774	$	1,766,797	$	1,241,680		$	647,431	$	413,856	$	380,747		$	284,149	$	6,182,434
YTD gross charge-offs		178		3,961		3,267			797		909		858			6,120		16,090
YTD net charge-offs (recoveries)		178		3,749		2,851			647		351		(6,823	)		6,090		7,043

(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:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
	(in thousands)
March 31, 2024
Real estate loans:
Commercial property
Retail	$	757	$	—	$	—	$	757	$	1,090,302	$	1,091,059
Hospitality		—		—		—		—		740,160		740,160
Office		—		—		—		—		575,847		575,847
Other		2,950		366		574		3,890		1,363,505		1,367,395
Total commercial property loans		3,707		366		574		4,647		3,769,814		3,774,461
Construction		—		—		—		—		104,216		104,216
Residential		2,190		1,410		—		3,600		966,762		970,362
Total real estate loans		5,897		1,776		574		8,247		4,840,792		4,849,039
Commercial and industrial loans		107		3,989		—		4,096		770,755		774,851
Equipment financing agreements		7,452		1,994		3,924		13,370		540,580		553,950
Total loans receivable	$	13,456	$	7,759	$	4,498	$	25,713	$	6,152,127	$	6,177,840
December 31, 2023
Real estate loans:
Commercial property
Retail	$	632	$	—	$	—	$	632	$	1,106,728	$	1,107,360
Hospitality		—		150		22		172		740,347		740,519
Office		—		—		—		—		574,981		574,981
Other		592		—		—		592		1,365,942		1,366,534
Total commercial property loans		1,224		150		22		1,396		3,787,998		3,789,394
Construction		—		—		—		—		100,345		100,345
Residential		521		336		1		858		961,803		962,661
Total real estate loans		1,745		486		23		2,254		4,850,146		4,852,400
Commercial and industrial loans		76		120		5,178		5,374		742,445		747,819
Equipment financing agreements		7,138		2,134		4,551		13,823		568,392		582,215
Total loans receivable	$	8,959	$	2,740	$	9,752	$	21,451	$	6,160,983	$	6,182,434

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 March 31, 2024 and December 31, 2023.

	March 31, 2024
	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	$	161	$	437	$	—	$	598
Hospitality		292		—		—		292
Office		—		—		—		—
Other		2,148		16		—		2,164
Total commercial property loans		2,601		453		—		3,054
Total real estate loans		2,601		453		—		3,054
Commercial and industrial loans		—		4,029		—		4,029
Equipment financing agreements		663		6,278		—		6,941
Total	$	3,264	$	10,760	$	—	$	14,024
	December 31, 2023
	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	$	1,717	$	321	$	—	$	2,038
Hospitality		338		150		—		488
Other		305		18		—		323
Total commercial property loans		2,360		489		—		2,849
Residential		1		—		—		1
Total real estate loans		2,361		489		—		2,850
Commercial and industrial loans		5,213		92		—		5,305
Equipment financing agreements		570		6,749		—		7,319
Total	$	8,144	$	7,330	$	—	$	15,474

The Company recognized $9,000 and $104,000 of interest income on nonaccrual loans for the three months ended March 31, 2024 and 2023, respectively.

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

	March 31, 2024		December 31, 2023
	(in thousands)
Nonaccrual loans	$	14,024	$	15,474
Total nonperforming loans receivable		14,024		15,474
Other real estate owned (“OREO”)		117		117
Total nonperforming assets	$	14,141	$	15,591

OREO of $0.1 million is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023.

Loan Modifications

No loans were modified to borrowers experiencing financial difficulty during the three months ended March 31, 2024 or during the three months ended March 31, 2023.

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Servicing Assets

3 Months Ended

Mar. 31, 2024

Transfers and Servicing [Abstract]

Servicing Assets

Note 4 — Servicing Assets

The changes in servicing assets for the three months ended March 31, 2024 and 2023 were as follows:

	Three Months Ended March 31,
	2024			2023
	(in thousands)
Balance at beginning of period	$	7,070		$	7,176
Addition related to sale of SBA loans		514			615
Amortization		(694	)		(635	)
Change in valuation allowance		—			385
Balance at end of period	$	6,890		$	7,541

At March 31, 2024 and December 31, 2023, we serviced loans sold to unaffiliated parties of $536.0 million and $539.6 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 for each of the three months ended March 31, 2024 and 2023. 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 $0.7 million and $0.6 million for the three months ended March 31, 2024 and 2023, respectively.

The fair value of servicing rights was $8.3 million at March 31, 2024 and was determined using discount rates ranging from 11.1% to 22.2% and prepayment speeds ranging from 11.4% to 20.5%, depending on the stratification of the specific right. The fair value of servicing rights was $7.7 million at December 31, 2023 and was determined using discount rates ranging from 14.4% to 24.7% and prepayment speeds ranging from 12.2% to 19.7%, depending on the stratification of the specific right.

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Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 5 — Income Taxes

The Company’s income tax expense was $6.6 million and $9.3 million, representing an effective income tax rate of 30.2% and 29.7% for the three months ended March 31, 2024 and 2023, respectively.

Management concluded that as of March 31, 2024 and December 31, 2023, a valuation allowance of $1.9 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 deferred tax assets were $35.9 million and $35.2 million as of March 31, 2024 and December 31, 2023, respectively.

As of March 31, 2024, the Company was subject to examination by various taxing authorities for its federal tax returns for the periods ended after December 31, 2019 and state tax returns for the periods ended after December 31, 2018. During the quarter ended March 31, 2024, 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

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Note 6 — Goodwill and other Intangibles

The third-party originator's 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:

		March 31, 2024							December 31, 2023
	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	$	(2,170	)	$	43	$	2,213	$	(2,145	)	$	68
Third-party originator's intangible	7 years		—		—			—		483		(483	)		—
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,244	$	(2,170	)	$	11,074	$	13,727	$	(2,628	)	$	11,099

The Company performed an impairment analysis in the first quarter of 2024 and determined there was no impairment as of March 31, 2024. No triggering event occurred as of, or subsequent to March 31, 2024, that would require a reassessment of goodwill and other intangible assets.

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Deposits

3 Months Ended

Mar. 31, 2024

Deposits [Abstract]

Deposits

Note 7 — Deposits

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

	Time Deposits More Than $250,000		Other Time Deposits		Total
	(in thousands)
At March 31, 2024
2024	$	835,582	$	1,246,625	$	2,082,207
2025		158,310		250,112		408,422
2026		263		3,754		4,017
2027		—		807		807
2028 and thereafter		—		308		308
Total	$	994,155	$	1,501,606	$	2,495,761
At December 31, 2023
2024	$	995,830	$	1,444,509	$	2,440,339
2025		3,928		6,205		10,133
2026		263		3,142		3,405
2027		—		572		572
2028 and thereafter		—		418		418
Total	$	1,000,021	$	1,454,846	$	2,454,867

Accrued interest payable on deposits was $37.9 million and $39.2 million at March 31, 2024 and December 31, 2023, respectively. Total deposits reclassified to loans due to overdrafts at March 31, 2024 and December 31, 2023 were $1.5 million and $1.6 million, respectively.

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Borrowings and Subordinated Debentures

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Borrowings and Subordinated Debentures

Note 8 — Borrowings and Subordinated Debentures

At March 31, 2024, the Bank had $60.0 million of open advances and $112.5 million of term advances at the FHLB with a weighted average interest rate of 5.69% and 3.91%, respectively. At December 31, 2023, the Bank had $212.5 million of open advances and $112.5 million of term advances at the FHLB with a weighted average rate of 5.70% and 2.77%, respectively. Interest expense on borrowings for the three months ended March 31, 2024 and 2023 was $1.7 million and $2.4 million, respectively.

	March 31, 2024					December 31, 2023
	Outstanding Balance		Weighted Average Rate			Outstanding Balance		Weighted Average Rate
	(dollars in thousands)
Open advances	$	60,000		5.69	%	$	212,500		5.70	%
Advances due within 12 months		50,000		3.33			37,500		0.40
Advances due over 12 months through 24 months		25,000		4.44			12,500		1.90
Advances due over 24 months through 36 months		37,500		4.32			62,500		4.37
Outstanding advances	$	172,500		4.53	%	$	325,000		4.69	%

The following is financial data pertaining to FHLB advances:

	March 31, 2024			December 31, 2023
	(dollars in thousands)
Weighted-average interest rate at end of period		4.53	%		4.69	%
Weighted-average interest rate during the period		4.10	%		3.48	%
Average balance of FHLB advances	$	162,418		$	197,390
Maximum amount outstanding at any month-end	$	187,500		$	450,000

The Bank maintains a secured credit facility with the FHLB, allowing the Bank to borrow on an overnight and term basis. The Bank had pledged $2.45 billion and $2.36 billion of loans at carrying values as collateral with the FHLB as of March 31, 2024 and December 31, 2023, respectively. The remaining available borrowing capacity was $1.33 billion and $1.09 billion at March 31, 2024 and December 31, 2023, respectively.

The Bank also had securities pledged with the FRB with market values of $23.8 million and $24.8 million at March 31, 2024 and December 31, 2023, respectively. The pledged securities provided $22.3 million in available borrowing capacity through the Fed Discount Window as of March 31, 2024, and $23.2 million in available borrowing capacity through the Fed Discount Window and the Bank Term Funding Program (“BTFP”) as of December 31, 2023.

On August 20, 2021, the Company issued $110.0 million of Fixed-to-Floating Subordinated Notes (“2031 Notes”) with a maturity date of September 1, 2031. The 2031 Notes have an initial fixed interest rate of 3.75% 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 2031 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 2031 Notes’ maturity date. At March 31, 2024 and December 31, 2023, the balance of the 2031 Notes included in the Company’s Consolidated Balance Sheet, net of issuance cost, was $108.4 million and $108.3 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% fixed rate for the first five years and a variable rate of three-month LIBOR plus 140 basis points thereafter and invested the proceeds in the Subordinated Debentures. Beginning September 15, 2023, the variable rate on the TPS changed to three-month SOFR plus 166 basis points, representing the credit spread of 140 basis points and a 26 basis point adjustment to convert three-month LIBOR to three-month SOFR. The rate on the TPS at March 31, 2024 was 6.99%. 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 March 31, 2024 and December 31, 2023, the balance of Subordinated Debentures included in the Company’s Consolidated Balance Sheets, net of discount of $5.0 million and $5.1 million, was $21.8 million and $21.7 million, respectively. The amortization of discount was $106,000 and $104,000 for the three months ended March 31, 2024 and 2023, respectively.

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Earnings per Share

3 Months Ended

Mar. 31, 2024

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 stock units (“PSUs”) 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
	March 31,
	2024		2023
	(dollars in thousands, except per share amounts)
Basic EPS
Net income	$	15,164	$	21,991
Less: income allocated to unvested restricted stock		92		117
Income allocated to common shares	$	15,072	$	21,874
Weighted-average shares for basic EPS		30,119,646		30,347,325
Basic EPS (1)	$	0.50	$	0.72
Effect of dilutive stock options and unvested performance stock units		—		83,420
Diluted EPS
Income allocated to common shares	$	15,072	$	21,874
Weighted-average shares for diluted EPS		30,119,646		30,430,745
Diluted EPS (1)	$	0.50	$	0.72

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

On a weighted-average basis, options to purchase 61,000 and 31,034 shares of common stock were excluded from the calculation of diluted earnings per share for the three months ended March 31, 2024 and 2023, respectively, because their effect would have been anti-dilutive. There were 91,732 of and no anti-dilutive unvested PSUs outstanding for the three months ended March 31, 2024 and 2023, respectively.

No PSUs were awarded to executive officers during the three months ended March 31, 2024. During the three months ended March 31, 2023, the Company issued 52,450 PSUs to executive officers from the 2021 Equity Compensation Plan with a fair value of $1.1 million on the grant date of March 10, 2023. These units have a three-year cliff vesting period and include dividend equivalent rights. Total PSUs outstanding as of March 31, 2024 were 91,732 with an aggregate grant fair value of $2.1 million. Total PSUs outstanding as of March 31, 2023 were 157,049 with an aggregate grant fair value of $3.1 million.

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Regulatory Matters

3 Months Ended

Mar. 31, 2024

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% and a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%. 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%.

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% and a minimum ratio of Tier 1 capital to risk-weighted assets of 8.0%. 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%.

At March 31, 2024, 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% 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 6.50% and 6.27% and the Company's capital conservation buffer was 6.40% and 6.20% as of March 31, 2024 and December 31, 2023, 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 March 31, 2024 and December 31, 2023 were as follows:

						Minimum					Minimum to Be
						Regulatory					Categorized as
	Actual					Requirement					“Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
March 31, 2024
Total capital (to risk-weighted assets):
Hanmi Financial	$	958,173		15.20	%	$	504,319		8.00	%	N/A		N/A
Hanmi Bank	$	914,061		14.50	%	$	504,340		8.00	%	$	630,425		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	781,521		12.40	%	$	378,239		6.00	%	N/A		N/A
Hanmi Bank	$	847,409		13.44	%	$	378,255		6.00	%	$	504,340		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	759,752		12.05	%	$	283,680		4.50	%	N/A		N/A
Hanmi Bank	$	847,409		13.44	%	$	283,691		4.50	%	$	409,776		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	781,521		10.36	%	$	301,758		4.00	%	N/A		N/A
Hanmi Bank	$	847,409		11.29	%	$	300,334		4.00	%	$	375,417		5.00	%
December 31, 2023
Total capital (to risk-weighted assets):
Hanmi Financial	$	947,286		14.95	%	$	506,891		8.00	%	N/A		N/A
Hanmi Bank	$	904,153		14.27	%	$	506,741		8.00	%	$	633,426		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	773,179		12.20	%	$	380,168		6.00	%	N/A		N/A
Hanmi Bank	$	840,046		13.26	%	$	380,056		6.00	%	$	506,741		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	751,516		11.86	%	$	285,126		4.50	%	N/A		N/A
Hanmi Bank	$	840,046		13.26	%	$	285,042		4.50	%	$	411,727		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	773,179		10.37	%	$	298,277		4.00	%	N/A		N/A
Hanmi Bank	$	840,046		11.32	%	$	296,948		4.00	%	$	371,185		5.00	%

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Fair Value Measurements

3 Months Ended

Mar. 31, 2024

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 March 31, 2024 and December 31, 2023, 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, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, and result in 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, and result in a Level 3 classification. 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 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 March 31, 2024 and December 31, 2023, 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)
March 31, 2024
Assets:
Securities available for sale:
U.S. Treasury securities	$	87,304	$	—	$	—	$	87,304
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		—		424,673		—		424,673
Mortgage-backed securities - commercial		—		47,220		—		47,220
Collateralized mortgage obligations		—		121,735		—		121,735
Debt securities		—		124,816		—		124,816
Total U.S. government agency and sponsored agency obligations		—		718,444		—		718,444
Municipal bonds-tax exempt		—		66,442		—		66,442
Total securities available for sale	$	87,304	$	784,886	$	—	$	872,190
Derivative financial instruments	$	—	$	6,459	$	—	$	6,459
Liabilities:
Derivative financial instruments	$	—	$	8,318	$	—	$	8,318
December 31, 2023
Assets:
Securities available for sale:
U.S. Treasury securities	$	85,488	$	—	$	—	$	85,488
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		—		442,328		—		442,328
Mortgage-backed securities - commercial		—		47,991		—		47,991
Collateralized mortgage obligations		—		97,411		—		97,411
Debt securities		—		124,625		—		124,625
Total U.S. government agency and sponsored agency obligations		—		712,355		—		712,355
Municipal bonds-tax exempt		—		67,896		—		67,896
Total securities available for sale	$	85,488	$	780,251	$	—	$	865,739
Derivative financial instruments	$	—	$	6,245	$	—	$	6,245
Liabilities:
Derivative financial instruments	$	—	$	5,920	$	—	$	5,920

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

As of March 31, 2024 and December 31, 2023, 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)
March 31, 2024
Assets:
Collateral dependent loans (1)	$	4,410	$	—	$	—	$	4,410
Other real estate owned		117		—		—		117
Repossessed personal property		1,288		—		—		1,288
December 31, 2023
Assets:
Collateral dependent loans (2)	$	7,352	$	—	$	—	$	7,352
Other real estate owned		117		—		—		117
Repossessed personal property		1,305		—		—		1,305

(1)Consisted of real estate loans of $2.4 million and commercial and industrial loans of $2.0 million.

(2)Consisted of real estate loans of $2.2 million and commercial and industrial loans of $5.2 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 March 31, 2024 and December 31, 2023:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
March 31, 2024
Collateral dependent loans:
Real estate loans:
Commercial property
Hospitality	$	299	Market approach	Adjustments to market data	(30)% to 35% / (3)%	(1)
Other		2,147	Market approach	Adjustments to market data	(25)% to 25% / 8%	(1)
Total real estate loans		2,446
Commercial and industrial loans		1,964	Market approach	Adjustments to market data	N/A	(2)
Total	$	4,410
Other real estate owned	$	117	Market approach	Adjustments to market data	0% to 5% / 4%	(1)
Repossessed personal property		1,288	Market approach	Adjustments to market data	N/A	(3)
December 31, 2023
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	1,530	Market approach	Adjustments to market data	5% to 20% / 15%	(1)
Hospitality		338	Market approach	Adjustments to market data	(30)% to 35% / (1)%	(1)
Other		305	Market approach	Adjustments to market data	(6)% to 1% / (2)%	(1)
Residential		1	Market approach	Adjustments to market data	(15)% to 3% / (6)%	(1)
Total real estate loans		2,174
Commercial and industrial loans		5,178	Market approach	Adjustments to market data	(20)% to 55% / (2)%	(1)
Total	$	7,352
Other real estate owned	$	117	Market approach	Adjustments to market data	(10)% to 5% / (2)%	(1)
Repossessed personal property		1,305	Market approach	Adjustments to market data	N/A	(3)

(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 adjustments represent decreases.

(2)Includes one loan secured by cash and business assets.

(3)The equipment is usually too small 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 March 31, 2024, 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 estimated fair values of financial instruments were as follows:

	March 31, 2024
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	256,038	$	256,038	$	—	$	—
Securities available for sale		872,190		87,304		784,886		—
Loans held for sale		3,999		—		4,109		—
Loans receivable, net of allowance for credit losses		6,109,570		—		—		6,011,407
Accrued interest receivable		23,032		23,032		—		—
Financial liabilities:
Noninterest-bearing deposits		1,933,060		—		1,933,060		—
Interest-bearing deposits		4,443,000		—		—		4,437,547
Borrowings and subordinated debentures		302,665		—		171,201		131,361
Accrued interest payable		38,007		38,007		—		—

	December 31, 2023
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	302,324	$	302,324	$	—	$	—
Securities available for sale		865,739		85,488		780,251		—
Loans held for sale		12,013		—		12,238		—
Loans receivable, net of allowance for credit losses		6,112,972		—		—		6,007,975
Accrued interest receivable		23,371		23,371		—		—
Financial liabilities:
Noninterest-bearing deposits		2,003,596		—		2,003,596		—
Interest-bearing deposits		4,276,978		—		—		4,271,711
Borrowings and subordinated debentures		455,012		—		323,491		128,229
Accrued interest payable		39,306		39,306		—		—

The methods and assumptions used to estimate the fair value of each class of financial instruments for which it was practicable to estimate that value are explained below:

Cash and due from banks – The carrying amounts of cash and due from banks approximate fair value due to the short-term nature of these instruments (Level 1).

Securities – The fair value of securities, consisting of securities available for sale, is generally obtained from market bids for similar or identical securities, from independent securities brokers or dealers, or from other model-based valuation techniques described above (Level 1 and 2).

Loans held for sale – Loans held for sale, representing the guaranteed portion of SBA loans, are carried at the lower of aggregate cost or fair market value, as determined based upon quotes, bids or sales contract prices (Level 2).

Loans receivable, net of allowance for credit losses – The fair value of loans receivable is estimated based on the discounted cash flow approach. To estimate the fair value of the loans, certain loan characteristics such as account types, remaining terms, annual interest rates or coupons, interest types, past delinquencies, timing of principal and interest payments, current market rates, loan-to-value ratios, loss exposures, and remaining balances are considered. Additionally, the Company’s prior charge-off rates and loss ratios as well as various other assumptions relating to credit, interest, and prepayment risks are used as part of valuing the loan portfolio. Subsequently, the loans were individually evaluated by sorting and pooling them based on loan types, credit risk grades, and payment types. Consistent with the requirements of ASU 2016-01, the fair value of the Company's loans receivable is considered to be an exit price notion as of March 31, 2024 (Level 3).

The fair value of collateral dependent loans is estimated based on the net realizable fair value of the collateral or the observable market price of the most recent sale or quoted price from loans held for sale. The Company does not record loans at fair value on a recurring basis. Nonrecurring fair value adjustments to collateral dependent loans are recorded based on the current appraised value of the collateral (Level 3).

Accrued interest receivable – The carrying amount of accrued interest receivable approximates its fair value (Level 1).

Noninterest-bearing deposits – The fair value of noninterest-bearing deposits is the amount payable on demand at the reporting date (Level 2).

Interest-bearing deposits – The fair value of interest-bearing deposits, such as savings accounts, money market checking, and certificates of deposit, is estimated based on discounted cash flows. The cash flows for non-maturity deposits, including savings accounts and money market checking, are estimated based on their historical decaying experiences. The discount rate used for fair valuation is based on interest rates currently being offered by the Bank on comparable deposits as to amount and term (Level 3).

Borrowings and subordinated debentures – Borrowings consist of FHLB advances, subordinated debentures and other borrowings. Discounted cash flows based on current market rates for borrowings with similar remaining maturities are used to estimate the fair value of borrowings (Level 2 and 3).

Accrued interest payable – The carrying amount of accrued interest payable approximates its fair value (Level 1).

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Off-Balance Sheet Commitments

3 Months Ended

Mar. 31, 2024

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 its 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.

Some of the commitments to fund existing loans, lines of credit and letters of credit are expected to expire without being drawn upon. Therefore, the total commitments do not necessarily represent future cash requirements. As of March 31, 2024, the Bank was obligated on $120.0 million of letters of credit to the FHLB of San Francisco, which were being used as collateral for $120.0 million in public fund deposits from the State of California.

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

	March 31,		December 31,
	2024		2023
	(in thousands)
Unused commitments to extend credit	$	792,769	$	813,960
Standby letters of credit		83,772		83,725
Commercial letters of credit		35,929		33,140
Total commitments	$	912,470	$	930,825

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 March 31,
	2024			2023
	(in thousands)
Balance at beginning of period	$	2,474		$	3,114
Credit loss recovery		(177	)		(48	)
Balance at end of period	$	2,297		$	3,066

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Leases

3 Months Ended

Mar. 31, 2024

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 month to nine years and nine months, some of which include renewal or termination options to extend the lease for up to seven 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 March 31, 2024, the outstanding balances for our right-of-use asset and lease liability were $40.0 million and $44.0 million, respectively. The outstanding balances of the right-of-use asset and lease liability were $42.4 million and $46.4 million, respectively, as of December 31, 2023. The right-of-use asset is reported in prepaid expenses and other assets line item and lease liability is reported in accrued expenses and other liabilities line item on the Consolidated Balance Sheets.

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 March 31, 2024, 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)
2024	$	8,439
2025		7,550
2026		6,669
2027		6,593
2028		5,833
Thereafter		13,618
Remaining lease commitments		48,702
Interest		(4,716	)
Present value of lease liability	$	43,986

Net lease expense recognized for the three months ended March 31, 2024 and 2023 was $2.2 million and $2.0 million, respectively. This included operating lease costs of $2.2 million and $2.1 million for the three months ended March 31, 2024 and 2023, respectively. Sublease income for operating leases was immaterial for both the three months ended March 31, 2024 and 2023.

Weighted average remaining lease terms for the Company's operating leases were 6.72 years and 6.82 years as of March 31, 2024 and December 31, 2023, respectively. Weighted average discount rates used for the Company's operating leases were 2.99% and 2.98% as of March 31, 2024 and December 31, 2023, respectively.

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 $2.2 million and $2.1 million for the three months ended March 31, 2024 and 2023, respectively.

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Liquidity

3 Months Ended

Mar. 31, 2024

Liquidity [Abstract]

Liquidity

Note 14 — Liquidity

Hanmi Financial

As of March 31, 2024, Hanmi Financial had $6.7 million in cash on deposit with its bank subsidiary and $34.3 million of U.S. Treasury securities at fair value. As of December 31, 2023, the Company had $7.5 million in cash on deposit with its bank subsidiary and $32.4 million of U.S. Treasury securities at fair value. 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 its 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, brokered deposits as well as State of California time deposits. As of March 31, 2024 and December 31, 2023, the Bank had $172.5 million and $325.0 million of FHLB advances, $43.3 million and $58.3 million of brokered deposits, respectively, and $120.0 million of State of California time deposits as of March 31, 2024 and December 31, 2023.

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% of its assets. As of March 31, 2024 and December 31, 2023, the total borrowing capacity available, based on pledged collateral was $1.63 and $1.54 billion, respectively.

The remaining available borrowing capacity was $1.33 billion and $1.09 billion as of March 31, 2024 and December 31, 2023, 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 $22.3 million from the Federal Reserve Discount Window, to which the Bank pledged securities with a carrying value of $28.1 million, with no borrowings as of March 31, 2024. 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 March 31, 2024 or December 31, 2023.

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Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Note 15 — Derivatives and Hedging Activities

Risk Management Objective of Using Derivative

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates.

Derivatives Designated as Hedging Instruments - Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives were used to hedge the variable cash flows associated with existing variable-rate assets. During the fourth quarter of 2023, the Company entered into a $100.0 million notional interest rate swap designated as a cash flow hedge, with an effective date of May 1, 2024 and a maturity date of May 1, 2026, to hedge a pool of Prime-indexed loans against falling rates. The principal balance of the loan pool designated for the Prime-indexed loans was $152.9 million as of March 31, 2024. During the first quarter of 2024, the Company entered into a $75.0 million notional interest rate swap designated as a cash flow hedge, with an effective date of May 1, 2024 and a maturity date of May 1, 2026, to hedge a pool of one-month SOFR-indexed loans against falling rates. The principal balance of the loan pool designated for the SOFR-indexed loans was $103.5 million as of March 31, 2024.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Management evaluated the effectiveness of the Company’s derivatives designated as cash flow hedges at inception and at the balance sheet date and determined they are effective. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During the next 12 months, the Company estimates that an additional $1.7 million will be reclassified as a decrease to interest income.

Derivatives Not Designated as Hedging Instruments

The Company also enters into 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 classification on the Balance Sheet as of March 31, 2024 and December 31, 2023.

As of March 31, 2024	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	$	103,918	Other Assets	$	6,459	$	103,918	Other Liabilities	$	6,417
Total derivatives not designated as hedging instruments				$	6,459				$	6,417
Derivatives designated as hedging instruments
Interest rate products	$	—	Other Assets	$	—	$	175,000	Other Liabilities	$	1,901
Total derivatives designated as hedging instruments				$	—				$	1,901
As of December 31, 2023	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	$	104,571	Other Assets	$	5,939	$	104,571	Other Liabilities	$	5,920
Total derivatives not designated as hedging instruments				$	5,939				$	5,920
Derivatives designated as hedging instruments
Interest rate products	$	100,000	Other Assets	$	306	$	—	Other Liabilities	$	—
Total derivatives designated as hedging instruments				$	306				$	—

The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income as of March 31, 2024 and December 31, 2023.

As of March 31, 2024
Derivatives in Subtopic 815-20 Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative			Amount of Gain or (Loss) Recognized in OCI Included Component			Amount of Gain or (Loss) Recognized in OCI Excluded Component		Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component
	(in thousands)
Derivatives in Cash Flow Hedging Relationships
Interest Rate Products	$	(2,207	)	$	(2,207	)	$	—	Interest Income	$	—	$	—	$	—
Total	$	(2,207	)	$	(2,207	)	$	—		$	—	$	—	$	—
As of December 31, 2023
Derivatives in Subtopic 815-20 Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative			Amount of Gain or (Loss) Recognized in OCI Included Component			Amount of Gain or (Loss) Recognized in OCI Excluded Component		Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component
	(in thousands)
Derivatives in Cash Flow Hedging Relationships
Interest Rate Products	$	306		$	306		$	—	Interest Income	$	—	$	—	$	—
Total	$	306		$	306		$	—		$	—	$	—	$	—

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 months ended March 31, 2024 and 2023.

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 March 31,
		2024		2023
		(in thousands)
Interest rate products	Other income	$	23	$	(128	)
Total		$	23	$	(128	)

No fee income was recognized from its derivative financial instruments for the three months ended March 31, 2024, compared to $0.6 million for the three months ended March 31, 2023.

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2024 and December 31, 2023. 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 March 31, 2024
							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	$	6,459	$	—	$	6,459	$	1,901	$	4,558	$	—
Offsetting of Derivative Liabilities
As of March 31, 2024
							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	$	8,318	$	—	$	8,318	$	1,901	$	—	$	6,417
Offsetting of Derivative Assets
As of December 31, 2023
							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	$	6,245	$	—	$	6,245	$	284	$	5,731	$	230
Offsetting of Derivative Liabilities
As of December 31, 2023
							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	$	5,920	$	—	$	5,920	$	284	$	—	$	5,636

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 March 31, 2024 and December 31, 2023, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $0. As of March 31, 2024 and December 31, 2023, no collateral was provided related to these agreements.

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Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

Subsequent Events

Note 16 — Subsequent Events

Cash Dividend

On April 25, 2024, the Company announced that the Board of Directors of the Company declared a quarterly cash dividend of $0.25 per share to be paid on May 22, 2024 to stockholders of record as of the close of business on May 6, 2024.

Share Repurchase

In addition to the share repurchases completed during the first quarter of 2024, the Company announced on April 25, 2024 that the Board of Directors has adopted a new stock repurchase program under which the Company may repurchase up to 5% of its outstanding shares, or approximately 1.5 million shares of its common stock. The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. The repurchase program does not obligate the Company to purchase any particular number of shares.

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Organization and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2024

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 March 31, 2024 and December 31, 2023, 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, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, and result in 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, and result in a Level 3 classification. 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 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 March 31, 2024 and December 31, 2023:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
March 31, 2024
Collateral dependent loans:
Real estate loans:
Commercial property
Hospitality	$	299	Market approach	Adjustments to market data	(30)% to 35% / (3)%	(1)
Other		2,147	Market approach	Adjustments to market data	(25)% to 25% / 8%	(1)
Total real estate loans		2,446
Commercial and industrial loans		1,964	Market approach	Adjustments to market data	N/A	(2)
Total	$	4,410
Other real estate owned	$	117	Market approach	Adjustments to market data	0% to 5% / 4%	(1)
Repossessed personal property		1,288	Market approach	Adjustments to market data	N/A	(3)
December 31, 2023
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	1,530	Market approach	Adjustments to market data	5% to 20% / 15%	(1)
Hospitality		338	Market approach	Adjustments to market data	(30)% to 35% / (1)%	(1)
Other		305	Market approach	Adjustments to market data	(6)% to 1% / (2)%	(1)
Residential		1	Market approach	Adjustments to market data	(15)% to 3% / (6)%	(1)
Total real estate loans		2,174
Commercial and industrial loans		5,178	Market approach	Adjustments to market data	(20)% to 55% / (2)%	(1)
Total	$	7,352
Other real estate owned	$	117	Market approach	Adjustments to market data	(10)% to 5% / (2)%	(1)
Repossessed personal property		1,305	Market approach	Adjustments to market data	N/A	(3)

(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 adjustments represent decreases.

(2)Includes one loan secured by cash and business assets.

(3)The equipment is usually too small 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 March 31, 2024, 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.

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Securities (Tables)

3 Months Ended

Mar. 31, 2024

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)
March 31, 2024
U.S. Treasury securities	$	88,407	$	21	$	(1,124	)	$	87,304
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		489,714		226		(65,267	)		424,673
Mortgage-backed securities - commercial		59,603		—		(12,383	)		47,220
Collateralized mortgage obligations		131,756		107		(10,128	)		121,735
Debt securities		132,236		—		(7,420	)		124,816
Total U.S. government agency and sponsored agency obligations		813,309		333		(95,198	)		718,444
Municipal bonds-tax exempt		76,864		—		(10,422	)		66,442
Total securities available for sale	$	978,580	$	354	$	(106,744	)	$	872,190
December 31, 2023
U.S. Treasury securities	$	86,355	$	173	$	(1,040	)	$	85,488
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		504,544		481		(62,697	)		442,328
Mortgage-backed securities - commercial		59,973		—		(11,982	)		47,991
Collateralized mortgage obligations		106,823		237		(9,649	)		97,411
Debt securities		132,215		—		(7,590	)		124,625
Total U.S. government agency and sponsored agency obligations		803,555		718		(91,918	)		712,355
Municipal bonds-tax exempt		77,121		—		(9,225	)		67,896
Total securities available for sale	$	967,031	$	891	$	(102,183	)	$	865,739

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 March 31, 2024 and December 31, 2023, 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.

	March 31, 2024				December 31, 2023
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	76,125	$	75,255	$	62,521	$	61,828
Over one year through five years		156,571		148,475		169,176		160,983
Over five years through ten years		90,497		82,423		83,720		77,608
Over ten years		655,387		566,037		651,614		565,320
Total	$	978,580	$	872,190	$	967,031	$	865,739

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 March 31, 2024 or December 31, 2023, 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)
March 31, 2024
U.S. Treasury securities	$	(159	)	$	43,837		13	$	(965	)	$	31,489		11	$	(1,124	)	$	75,326		24
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(88	)		16,344		8		(65,179	)		395,536		118		(65,267	)		411,880		126
Mortgage-backed securities - commercial		—			—		—		(12,383	)		47,220		15		(12,383	)		47,220		15
Collateralized mortgage obligations		(268	)		38,790		10		(9,860	)		63,898		25		(10,128	)		102,688		35
Debt securities		—			—		—		(7,420	)		124,816		26		(7,420	)		124,816		26
Total U.S. government agency and sponsored agency obligations		(356	)		55,134		18		(94,842	)		631,470		184		(95,198	)		686,604		202
Municipal bonds-tax exempt		—			—		—		(10,422	)		66,442		19		(10,422	)		66,442		19
Total	$	(515	)	$	98,971		31	$	(106,229	)	$	729,401		214	$	(106,744	)	$	828,372		245
December 31, 2023
U.S. Treasury securities	$	(57	)	$	21,024		7	$	(983	)	$	32,449		11	$	(1,040	)	$	53,473		18
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(11	)		2,324		5		(62,686	)		411,417		118		(62,697	)		413,741		123
Mortgage-backed securities - commercial		—			—		—		(11,982	)		47,991		15		(11,982	)		47,991		15
Collateralized mortgage obligations		(38	)		7,074		2		(9,611	)		63,610		24		(9,649	)		70,684		26
Debt securities		—			—		—		(7,590	)		124,625		26		(7,590	)		124,625		26
Total U.S. government agency and sponsored agency obligations		(49	)		9,398		7		(91,869	)		647,643		183		(91,918	)		657,041		190
Municipal bonds-tax exempt		—			—		—		(9,225	)		67,896		19		(9,225	)		67,896		19
Total	$	(106	)	$	30,422		14	$	(102,077	)	$	747,988		213	$	(102,183	)	$	778,410		227

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Loans (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Loans

Loans consisted of the following as of the dates indicated:

	March 31, 2024			December 31, 2023
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,091,059		$	1,107,360
Hospitality		740,160			740,519
Office		575,847			574,981
Other (1)		1,367,395			1,366,534
Total commercial property loans		3,774,461			3,789,394
Construction		104,216			100,345
Residential (2)		970,362			962,661
Total real estate loans		4,849,039			4,852,400
Commercial and industrial loans (3)		774,851			747,819
Equipment financing agreements		553,950			582,215
Loans receivable		6,177,840			6,182,434
Allowance for credit losses		(68,270	)		(69,462	)
Loans receivable, net	$	6,109,570		$	6,112,972

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

(2)Includes $1.5 million and $1.9 million of home equity loans and lines, and $5.3 million and $4.5 million of personal loans at March 31, 2024 and December 31, 2023, respectively.

(3)At March 31, 2024 and December 31, 2023, Paycheck Protection Program loans were $0.1 million and $0.2 million, respectively.

Activity for Loans Held for Sale

The following is the activity for loans held for sale for the following periods:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
Three months ended March 31, 2024
Balance at beginning of period	$	8,792		$	3,221		$	12,013
Originations and transfers		9,614			8,018			17,632
Sales		(16,900	)		(8,687	)		(25,587	)
Principal paydowns and amortization		(52	)		(7	)		(59	)
Balance at end of period	$	1,454		$	2,545		$	3,999
Three months ended March 31, 2023
Balance at beginning of period	$	3,775		$	4,268		$	8,043
Originations and transfers		16,387			8,929			25,316
Sales		(19,781	)		(9,918	)		(29,699	)
Principal paydowns and amortization		(2	)		(6	)		(8	)
Balance at end of period	$	379		$	3,273		$	3,652

Loans Purchased by Portfolio Segment

The following table presents loans purchased by portfolio segment for the following periods:

	Three Months Ended
	March 31,
	2024		2023
	(in thousands)
Commercial real estate	$	274	$	—
Commercial and industrial		9,924		—
Residential real estate		—		—
Total	$	10,198	$	—

Allowance for Credit Losses by Portfolio Segment

The following table details the information on the allowance for credit losses by portfolio segment for the following periods:

	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
Three months ended March 31, 2024
Balance at beginning of period	$	45,499		$	10,257		$	13,706			69,462
Charge-offs		—			(155	)		(1,968	)		(2,123	)
Recoveries		46			58			423			527
Credit loss expense (recovery)		(2,961	)		1,676			1,689			404
Ending balance	$	42,584		$	11,836		$	13,850		$	68,270
Three months ended March 31, 2023
Balance at beginning of period	$	44,026		$	15,267		$	12,230		$	71,523
Charge-offs		(412	)		(210	)		(1,616	)		(2,238	)
Recoveries		68			235			480			783
Credit loss expense (recovery)		(151	)		41			2,291			2,181
Ending balance	$	43,531		$	15,333		$	13,385		$	72,249

The table below presents the allowance for credit losses by portfolio segment as a percentage of the total allowance for credit losses and loans by portfolio segment as a percentage of the aggregate investment of loans receivable as of:

	March 31, 2024										December 31, 2023
	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	$	10,095		14.8	%	$	1,091,059		17.7	%	$	10,264		14.8	%	$	1,107,360		17.9	%
Hospitality		11,668		17.1			740,160		12.0			15,534		22.4			740,519		12.0
Office		3,740		5.5			575,847		9.3			3,024		4.4			574,981		9.3
Other		8,270		12.1			1,367,395		22.1			8,663		12.4			1,366,534		22.1
Total commercial property loans		33,773		49.5			3,774,461		61.1			37,485		54.0			3,789,394		61.3
Construction		2,611		3.8			104,216		1.7			2,756		4.0			100,345		1.6
Residential		6,200		9.1			970,362		15.7			5,258		7.5			962,661		15.6
Total real estate loans		42,584		62.4			4,849,039		78.5			45,499		65.5			4,852,400		78.5
Commercial and industrial loans		11,836		17.3			774,851		12.5			10,257		14.8			747,819		12.1
Equipment financing agreements		13,850		20.3			553,950		9.0			13,706		19.7			582,215		9.4
Total	$	68,270		100.0	%	$	6,177,840		100.0	%	$	69,462		100.0	%	$	6,182,434		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, for which repayment is expected to be obtained through the sale of the underlying collateral, as of:

	March 31, 2024		December 31, 2023
	(in thousands)
Real estate loans:
Commercial property
Retail	$	—	$	1,530
Hospitality		299		338
Other		2,147		305
Total commercial property loans		2,446		2,173
Residential		—		1
Total real estate loans		2,446		2,174
Commercial and industrial loans		3,927		5,178
Total	$	6,373	$	7,352

Credit Quality of Loan Portfolio

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2024		2023		2022		2021		2020			Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
March 31, 2024
Real estate loans:
Commercial property
Risk Rating							`
Pass / Pass-Watch	$	109,310	$	614,621	$	978,263	$	847,463	$	567,561		$	578,221		$	46,941		$	3,742,380
Special Mention		4,399		—		3,979		3,252		5,628			967			1,409			19,634
Classified		1,573		—		1,197		—		—			9,677			—			12,447
Total commercial property		115,282		614,621		983,439		850,715		573,189			588,865			48,350			3,774,461
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Construction
Risk Rating
Pass / Pass-Watch		49,902		26,003		—		—		—			—			—			75,905
Special Mention		—		—		—		28,311		—			—			—			28,311
Classified		—		—		—		—		—			—			—			—
Total construction		49,902		26,003		—		28,311		—			—			—			104,216
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Residential
Risk Rating
Pass / Pass-Watch		52,132		256,261		369,965		156,338		12,510			117,129			5,777			970,112
Special Mention		—		—		—		—		—			—			250			250
Classified		—		—		—		—		—			—			—			—
Total residential		52,132		256,261		369,965		156,338		12,510			117,129			6,027			970,362
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Total real estate loans
Risk Rating
Pass / Pass-Watch		211,344		896,885		1,348,228		1,003,801		580,071			695,350			52,718			4,788,397
Special Mention		4,399		—		3,979		31,563		5,628			967			1,659			48,195
Classified		1,573		—		1,197		—		—			9,677			—			12,447
Total real estate loans		217,316		896,885		1,353,404		1,035,364		585,699			705,994			54,377			4,849,039
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		97,014		98,018		161,227		76,197		17,368			19,615			287,010			756,449
Special Mention		403		—		13,595		—		99			24			—			14,121
Classified		—		—		96		—		—			258			3,927			4,281
Total commercial and industrial loans		97,417		98,018		174,918		76,197		17,467			19,897			290,937			774,851
YTD gross charge-offs		—		—		126		—		—			29			—			155
YTD net charge-offs (recoveries)		—		—		126		—		—			5			(34	)		97
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		35,518		198,213		190,684		88,306		19,607			14,681			—			547,009
Special Mention		—		—		—		—		—			—			—			—
Classified		—		846		3,613		1,729		216			537			—			6,941
Total equipment financing agreements		35,518		199,059		194,297		90,035		19,823			15,218			—			553,950
YTD gross charge-offs		—		19		1,364		400		170			15			—			1,968
YTD net charge-offs (recoveries)		—		19		1,207		310		164			(155	)		—			1,545
Total loans receivable:
Risk Rating
Pass / Pass-Watch		343,876		1,193,116		1,700,139		1,168,304		617,046			729,646			339,728			6,091,855
Special Mention		4,802		—		17,574		31,563		5,727			991			1,659			62,316
Classified		1,573		846		4,906		1,729		216			10,472			3,927			23,669
Total loans receivable	$	350,251	$	1,193,962	$	1,722,619	$	1,201,596	$	622,989		$	741,109		$	345,314		$	6,177,840
YTD gross charge-offs		—		19		1,490		400		170			44			—			2,123
YTD net charge-offs (recoveries)		—		19		1,333		310		159			(191	)		(34	)		1,596

(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)
	2023		2022		2021			2020		2019		Prior			Revolving Loans Amortized Cost Basis			Total
December 31, 2023
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	683,819	$	986,822	$	858,821		$	572,950	$	378,067	$	238,400		$	30,236		$	3,749,115
Special Mention		4,400		3,997		3,271			5,670		711		2,310			1,406			21,765
Classified		3,065		1,080		4,899			—		5,578		3,892			—			18,514
Total commercial property		691,284		991,899		866,991			578,620		384,356		244,602			31,642			3,789,394
YTD gross charge-offs		—		—		—			411		—		216			—			627
YTD net charge-offs (recoveries)		—		—		—			403		—		(81	)		—			322
Construction
Risk Rating
Pass / Pass-Watch		72,039		—		—			—		—		—			—			72,039
Special Mention		—		—		28,306			—		—		—			—			28,306
Classified		—		—		—			—		—		—			—			—
Total construction		72,039		—		28,306			—		—		—			—			100,345
YTD gross charge-offs		—		—		—			—		—		—			—			—
YTD net charge-offs (recoveries)		—		—		—			—		—		—			—			—
Residential
Risk Rating
Pass / Pass-Watch		290,196		375,712		158,618			12,656		217		119,736			5,025			962,160
Special Mention		—		—		—			—		—		—			500			500
Classified		—		—		—			—		—		1			—			1
Total residential		290,196		375,712		158,618			12,656		217		119,737			5,525			962,661
YTD gross charge-offs		—		—		—			—		—		—			—			—
YTD net charge-offs (recoveries)		—		—		—			—		—		(7	)		—			(7	)
Total real estate loans
Risk Rating
Pass / Pass-Watch		1,046,054		1,362,534		1,017,439			585,606		378,284		358,136			35,261			4,783,314
Special Mention		4,400		3,997		31,577			5,670		711		2,310			1,906			50,571
Classified		3,065		1,080		4,899			—		5,578		3,893			—			18,515
Total real estate loans		1,053,519		1,367,611		1,053,915			591,276		384,573		364,339			37,167			4,852,400
YTD gross charge-offs		—		—		—			411		—		216			—			627
YTD net charge-offs (recoveries)		—		—		—			403		—		(88	)		—			315
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		177,864		169,209		84,198			31,348		9,971		12,920			242,044			727,554
Special Mention		—		14,578		—			102		—		65			(1	)		14,744
Classified		329		—		—			—		79		174			4,939			5,521
Total commercial and industrial loans		178,193		183,787		84,198			31,450		10,050		13,159			246,982			747,819
YTD gross charge-offs		—		17		—			—		110		410			6,120			6,657
YTD net charge-offs (recoveries)		—		5		(7	)		—		101		(6,621	)		6,090			(432	)
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		215,670		211,228		101,622			24,340		18,832		3,192			—			574,884
Special Mention		—		—		—			—		—		—			—			—
Classified		392		4,171		1,945			365		401		57			—			7,331
Total equipment financing agreements		216,062		215,399		103,567			24,705		19,233		3,249			—			582,215
YTD gross charge-offs		178		3,944		3,267			386		799		232			—			8,806
YTD net charge-offs (recoveries)		178		3,744		2,858			244		250		(114	)		—			7,160
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,439,588		1,742,971		1,203,259			641,294		407,087		374,248			277,305			6,085,752
Special Mention		4,400		18,575		31,577			5,772		711		2,375			1,905			65,315
Classified		3,786		5,251		6,844			365		6,058		4,124			4,939			31,367
Total loans receivable	$	1,447,774	$	1,766,797	$	1,241,680		$	647,431	$	413,856	$	380,747		$	284,149		$	6,182,434
YTD gross charge-offs		178		3,961		3,267			797		909		858			6,120			16,090
YTD net charge-offs (recoveries)		178		3,749		2,851			647		351		(6,823	)		6,090			7,043

(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)
	2024		2023		2022		2021		2020			Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
March 31, 2024
Real estate loans:
Commercial property
Payment performance
Performing	$	113,709	$	614,621	$	983,314	$	850,715	$	573,189		$	587,509		$	48,350		$	3,771,407
Nonperforming		1,573		—		125		—		—			1,356			—			3,054
Total commercial property		115,282		614,621		983,439		850,715		573,189			588,865			48,350			3,774,461
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Construction
Payment performance
Performing		49,902		26,003		—		28,311		—			—			—			104,216
Nonperforming		—		—		—		—		—			—			—			—
Total construction		49,902		26,003		—		28,311		—			—			—			104,216
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Residential
Payment performance
Performing		52,132		256,261		369,965		156,338		12,510			117,129			6,027			970,362
Nonperforming		—		—		—		—		—			—			—			—
Total residential		52,132		256,261		369,965		156,338		12,510			117,129			6,027			970,362
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		—			—			—			—
Total real estate loans
Payment performance
Performing		215,743		896,885		1,353,279		1,035,364		585,699			704,638			54,377			4,845,985
Nonperforming		1,573		—		125		—		—			1,356			—			3,054
Total real estate loans		217,316		896,885		1,353,404		1,035,364		585,699			705,994			54,377			4,849,039
YTD gross charge-offs		—		—		—		—		—			—			—			—
YTD net charge-offs (recoveries)		—		—		—		—		(5	)		(41	)		—			(46	)
Commercial and industrial loans:
Payment performance
Performing		97,417		98,018		174,904		76,197		17,467			19,809			287,010			770,822
Nonperforming		—		—		14		—		—			88			3,927			4,029
Total commercial and industrial loans		97,417		98,018		174,918		76,197		17,467			19,897			290,937			774,851
YTD gross charge-offs		—		—		126		—		—			29			—			155
YTD net charge-offs (recoveries)		—		—		126		—		—			5			(34	)		97
Equipment financing agreements:
Payment performance
Performing		35,518		198,213		190,684		88,306		19,607			14,681			—			547,009
Nonperforming		—		846		3,613		1,729		216			537			—			6,941
Total equipment financing agreements		35,518		199,059		194,297		90,035		19,823			15,218			—			553,950
YTD gross charge-offs		—		19		1,364		400		170			15			—			1,968
YTD net charge-offs (recoveries)		—		19		1,207		310		164			(155	)		—			1,545
Total loans receivable:
Payment performance
Performing		348,678		1,193,116		1,718,867		1,199,867		622,773			739,128			341,387			6,163,816
Nonperforming		1,573		846		3,752		1,729		216			1,981			3,927			14,024
Total loans receivable	$	350,251	$	1,193,962	$	1,722,619	$	1,201,596	$	622,989		$	741,109		$	345,314		$	6,177,840
YTD gross charge-offs		—		19		1,490		400		170			44			—			2,123
YTD net charge-offs (recoveries)		—		19		1,333		310		159			(191	)		(34	)		1,596

(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)
	2023		2022		2021			2020		2019		Prior			Revolving Loans Amortized Cost Basis		Total
December 31, 2023
Real estate loans:
Commercial property
Payment performance
Performing	$	689,449	$	991,899	$	866,841		$	578,620	$	384,275	$	243,819		$	31,642	$	3,786,545
Nonperforming		1,835		—		150			—		81		783			—		2,849
Total commercial property		691,284		991,899		866,991			578,620		384,356		244,602			31,642		3,789,394
YTD gross charge-offs		—		—		—			411		—		216			—		627
YTD net charge-offs (recoveries)		—		—		—			403		—		(81	)		—		322
Construction
Payment performance
Performing		72,039		—		28,306			—		—		—			—		100,345
Nonperforming		—		—		—			—		—		—			—		—
Total construction		72,039		—		28,306			—		—		—			—		100,345
YTD gross charge-offs		—		—		—			—		—		—			—		—
YTD net charge-offs (recoveries)		—		—		—			—		—		—			—		—
Residential
Payment performance
Performing		290,196		375,712		158,618			12,656		217		119,736			5,525		962,660
Nonperforming		—		—		—			—		—		1			—		1
Total residential		290,196		375,712		158,618			12,656		217		119,737			5,525		962,661
YTD gross charge-offs		—		—		—			—		—		—			—		—
YTD net charge-offs (recoveries)		—		—		—			—		—		(7	)		—		(7	)
Total real estate loans
Payment performance
Performing		1,051,684		1,367,611		1,053,765			591,276		384,492		363,555			37,167		4,849,550
Nonperforming		1,835		—		150			—		81		784			—		2,850
Total real estate loans		1,053,519		1,367,611		1,053,915			591,276		384,573		364,339			37,167		4,852,400
YTD gross charge-offs		—		—		—			411		—		216			—		627
YTD net charge-offs (recoveries)		—		—		—			403		—		(88	)		—		315
Commercial and industrial loans:
Payment performance
Performing		177,864		183,787		84,198			31,415		10,050		13,066			242,134		742,514
Nonperforming		329		—		—			35		—		93			4,848		5,305
Total commercial and industrial loans		178,193		183,787		84,198			31,450		10,050		13,159			246,982		747,819
YTD gross charge-offs		—		17		—			—		110		410			6,120		6,657
YTD net charge-offs (recoveries)		—		5		(7	)		—		101		(6,621	)		6,090		(432	)
Equipment financing agreements:
Payment performance
Performing		215,670		211,228		101,622			24,340		18,844		3,192			—		574,896
Nonperforming		392		4,171		1,945			365		389		57			—		7,319
Total equipment financing agreements		216,062		215,399		103,567			24,705		19,233		3,249			—		582,215
YTD gross charge-offs		178		3,944		3,267			386		799		232			—		8,806
YTD net charge-offs (recoveries)		178		3,744		2,858			244		250		(114	)		—		7,160
Total loans receivable:
Payment performance
Performing		1,445,218		1,762,626		1,239,585			647,031		413,386		379,813			279,301		6,166,960
Nonperforming		2,556		4,171		2,095			400		470		934			4,848		15,474
Total loans receivable	$	1,447,774	$	1,766,797	$	1,241,680		$	647,431	$	413,856	$	380,747		$	284,149	$	6,182,434
YTD gross charge-offs		178		3,961		3,267			797		909		858			6,120		16,090
YTD net charge-offs (recoveries)		178		3,749		2,851			647		351		(6,823	)		6,090		7,043

(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:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
	(in thousands)
March 31, 2024
Real estate loans:
Commercial property
Retail	$	757	$	—	$	—	$	757	$	1,090,302	$	1,091,059
Hospitality		—		—		—		—		740,160		740,160
Office		—		—		—		—		575,847		575,847
Other		2,950		366		574		3,890		1,363,505		1,367,395
Total commercial property loans		3,707		366		574		4,647		3,769,814		3,774,461
Construction		—		—		—		—		104,216		104,216
Residential		2,190		1,410		—		3,600		966,762		970,362
Total real estate loans		5,897		1,776		574		8,247		4,840,792		4,849,039
Commercial and industrial loans		107		3,989		—		4,096		770,755		774,851
Equipment financing agreements		7,452		1,994		3,924		13,370		540,580		553,950
Total loans receivable	$	13,456	$	7,759	$	4,498	$	25,713	$	6,152,127	$	6,177,840
December 31, 2023
Real estate loans:
Commercial property
Retail	$	632	$	—	$	—	$	632	$	1,106,728	$	1,107,360
Hospitality		—		150		22		172		740,347		740,519
Office		—		—		—		—		574,981		574,981
Other		592		—		—		592		1,365,942		1,366,534
Total commercial property loans		1,224		150		22		1,396		3,787,998		3,789,394
Construction		—		—		—		—		100,345		100,345
Residential		521		336		1		858		961,803		962,661
Total real estate loans		1,745		486		23		2,254		4,850,146		4,852,400
Commercial and industrial loans		76		120		5,178		5,374		742,445		747,819
Equipment financing agreements		7,138		2,134		4,551		13,823		568,392		582,215
Total loans receivable	$	8,959	$	2,740	$	9,752	$	21,451	$	6,160,983	$	6,182,434

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 March 31, 2024 and December 31, 2023.

	March 31, 2024
	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	$	161	$	437	$	—	$	598
Hospitality		292		—		—		292
Office		—		—		—		—
Other		2,148		16		—		2,164
Total commercial property loans		2,601		453		—		3,054
Total real estate loans		2,601		453		—		3,054
Commercial and industrial loans		—		4,029		—		4,029
Equipment financing agreements		663		6,278		—		6,941
Total	$	3,264	$	10,760	$	—	$	14,024
	December 31, 2023
	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	$	1,717	$	321	$	—	$	2,038
Hospitality		338		150		—		488
Other		305		18		—		323
Total commercial property loans		2,360		489		—		2,849
Residential		1		—		—		1
Total real estate loans		2,361		489		—		2,850
Commercial and industrial loans		5,213		92		—		5,305
Equipment financing agreements		570		6,749		—		7,319
Total	$	8,144	$	7,330	$	—	$	15,474

Non-Performing Assets

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

	March 31, 2024		December 31, 2023
	(in thousands)
Nonaccrual loans	$	14,024	$	15,474
Total nonperforming loans receivable		14,024		15,474
Other real estate owned (“OREO”)		117		117
Total nonperforming assets	$	14,141	$	15,591

XML

Servicing Assets (Tables)

3 Months Ended

Mar. 31, 2024

Transfers and Servicing [Abstract]

Summary of Changes in Servicing Assets

The changes in servicing assets for the three months ended March 31, 2024 and 2023 were as follows:

	Three Months Ended March 31,
	2024			2023
	(in thousands)
Balance at beginning of period	$	7,070		$	7,176
Addition related to sale of SBA loans		514			615
Amortization		(694	)		(635	)
Change in valuation allowance		—			385
Balance at end of period	$	6,890		$	7,541

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Goodwill and Other Intangibles (Tables)

3 Months Ended

Mar. 31, 2024

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:

		March 31, 2024							December 31, 2023
	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	$	(2,170	)	$	43	$	2,213	$	(2,145	)	$	68
Third-party originator's intangible	7 years		—		—			—		483		(483	)		—
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,244	$	(2,170	)	$	11,074	$	13,727	$	(2,628	)	$	11,099

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Deposits (Tables)

3 Months Ended

Mar. 31, 2024

Deposits [Abstract]

Scheduled Maturities of Time Deposits

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

	Time Deposits More Than $250,000		Other Time Deposits		Total
	(in thousands)
At March 31, 2024
2024	$	835,582	$	1,246,625	$	2,082,207
2025		158,310		250,112		408,422
2026		263		3,754		4,017
2027		—		807		807
2028 and thereafter		—		308		308
Total	$	994,155	$	1,501,606	$	2,495,761
At December 31, 2023
2024	$	995,830	$	1,444,509	$	2,440,339
2025		3,928		6,205		10,133
2026		263		3,142		3,405
2027		—		572		572
2028 and thereafter		—		418		418
Total	$	1,000,021	$	1,454,846	$	2,454,867

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Borrowings and Subordinated Debentures (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Borrowings

	March 31, 2024					December 31, 2023
	Outstanding Balance		Weighted Average Rate			Outstanding Balance		Weighted Average Rate
	(dollars in thousands)
Open advances	$	60,000		5.69	%	$	212,500		5.70	%
Advances due within 12 months		50,000		3.33			37,500		0.40
Advances due over 12 months through 24 months		25,000		4.44			12,500		1.90
Advances due over 24 months through 36 months		37,500		4.32			62,500		4.37
Outstanding advances	$	172,500		4.53	%	$	325,000		4.69	%

Summary of Financial Data Pertaining to Federal Home Loan Bank Advances

The following is financial data pertaining to FHLB advances:

	March 31, 2024			December 31, 2023
	(dollars in thousands)
Weighted-average interest rate at end of period		4.53	%		4.69	%
Weighted-average interest rate during the period		4.10	%		3.48	%
Average balance of FHLB advances	$	162,418		$	197,390
Maximum amount outstanding at any month-end	$	187,500		$	450,000

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Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2024

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
	March 31,
	2024		2023
	(dollars in thousands, except per share amounts)
Basic EPS
Net income	$	15,164	$	21,991
Less: income allocated to unvested restricted stock		92		117
Income allocated to common shares	$	15,072	$	21,874
Weighted-average shares for basic EPS		30,119,646		30,347,325
Basic EPS (1)	$	0.50	$	0.72
Effect of dilutive stock options and unvested performance stock units		—		83,420
Diluted EPS
Income allocated to common shares	$	15,072	$	21,874
Weighted-average shares for diluted EPS		30,119,646		30,430,745
Diluted EPS (1)	$	0.50	$	0.72

(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)

3 Months Ended

Mar. 31, 2024

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 March 31, 2024 and December 31, 2023 were as follows:

						Minimum					Minimum to Be
						Regulatory					Categorized as
	Actual					Requirement					“Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
March 31, 2024
Total capital (to risk-weighted assets):
Hanmi Financial	$	958,173		15.20	%	$	504,319		8.00	%	N/A		N/A
Hanmi Bank	$	914,061		14.50	%	$	504,340		8.00	%	$	630,425		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	781,521		12.40	%	$	378,239		6.00	%	N/A		N/A
Hanmi Bank	$	847,409		13.44	%	$	378,255		6.00	%	$	504,340		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	759,752		12.05	%	$	283,680		4.50	%	N/A		N/A
Hanmi Bank	$	847,409		13.44	%	$	283,691		4.50	%	$	409,776		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	781,521		10.36	%	$	301,758		4.00	%	N/A		N/A
Hanmi Bank	$	847,409		11.29	%	$	300,334		4.00	%	$	375,417		5.00	%
December 31, 2023
Total capital (to risk-weighted assets):
Hanmi Financial	$	947,286		14.95	%	$	506,891		8.00	%	N/A		N/A
Hanmi Bank	$	904,153		14.27	%	$	506,741		8.00	%	$	633,426		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	773,179		12.20	%	$	380,168		6.00	%	N/A		N/A
Hanmi Bank	$	840,046		13.26	%	$	380,056		6.00	%	$	506,741		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	751,516		11.86	%	$	285,126		4.50	%	N/A		N/A
Hanmi Bank	$	840,046		13.26	%	$	285,042		4.50	%	$	411,727		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	773,179		10.37	%	$	298,277		4.00	%	N/A		N/A
Hanmi Bank	$	840,046		11.32	%	$	296,948		4.00	%	$	371,185		5.00	%

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

As of March 31, 2024 and December 31, 2023, 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)
March 31, 2024
Assets:
Securities available for sale:
U.S. Treasury securities	$	87,304	$	—	$	—	$	87,304
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		—		424,673		—		424,673
Mortgage-backed securities - commercial		—		47,220		—		47,220
Collateralized mortgage obligations		—		121,735		—		121,735
Debt securities		—		124,816		—		124,816
Total U.S. government agency and sponsored agency obligations		—		718,444		—		718,444
Municipal bonds-tax exempt		—		66,442		—		66,442
Total securities available for sale	$	87,304	$	784,886	$	—	$	872,190
Derivative financial instruments	$	—	$	6,459	$	—	$	6,459
Liabilities:
Derivative financial instruments	$	—	$	8,318	$	—	$	8,318
December 31, 2023
Assets:
Securities available for sale:
U.S. Treasury securities	$	85,488	$	—	$	—	$	85,488
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		—		442,328		—		442,328
Mortgage-backed securities - commercial		—		47,991		—		47,991
Collateralized mortgage obligations		—		97,411		—		97,411
Debt securities		—		124,625		—		124,625
Total U.S. government agency and sponsored agency obligations		—		712,355		—		712,355
Municipal bonds-tax exempt		—		67,896		—		67,896
Total securities available for sale	$	85,488	$	780,251	$	—	$	865,739
Derivative financial instruments	$	—	$	6,245	$	—	$	6,245
Liabilities:
Derivative financial instruments	$	—	$	5,920	$	—	$	5,920

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

As of March 31, 2024 and December 31, 2023, 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)
March 31, 2024
Assets:
Collateral dependent loans (1)	$	4,410	$	—	$	—	$	4,410
Other real estate owned		117		—		—		117
Repossessed personal property		1,288		—		—		1,288
December 31, 2023
Assets:
Collateral dependent loans (2)	$	7,352	$	—	$	—	$	7,352
Other real estate owned		117		—		—		117
Repossessed personal property		1,305		—		—		1,305

(1)Consisted of real estate loans of $2.4 million and commercial and industrial loans of $2.0 million.

(2)Consisted of real estate loans of $2.2 million and commercial and industrial loans of $5.2 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 March 31, 2024 and December 31, 2023:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
March 31, 2024
Collateral dependent loans:
Real estate loans:
Commercial property
Hospitality	$	299	Market approach	Adjustments to market data	(30)% to 35% / (3)%	(1)
Other		2,147	Market approach	Adjustments to market data	(25)% to 25% / 8%	(1)
Total real estate loans		2,446
Commercial and industrial loans		1,964	Market approach	Adjustments to market data	N/A	(2)
Total	$	4,410
Other real estate owned	$	117	Market approach	Adjustments to market data	0% to 5% / 4%	(1)
Repossessed personal property		1,288	Market approach	Adjustments to market data	N/A	(3)
December 31, 2023
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	1,530	Market approach	Adjustments to market data	5% to 20% / 15%	(1)
Hospitality		338	Market approach	Adjustments to market data	(30)% to 35% / (1)%	(1)
Other		305	Market approach	Adjustments to market data	(6)% to 1% / (2)%	(1)
Residential		1	Market approach	Adjustments to market data	(15)% to 3% / (6)%	(1)
Total real estate loans		2,174
Commercial and industrial loans		5,178	Market approach	Adjustments to market data	(20)% to 55% / (2)%	(1)
Total	$	7,352
Other real estate owned	$	117	Market approach	Adjustments to market data	(10)% to 5% / (2)%	(1)
Repossessed personal property		1,305	Market approach	Adjustments to market data	N/A	(3)

(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 adjustments represent decreases.

(2)Includes one loan secured by cash and business assets.

(3)The equipment is usually too small 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:

	March 31, 2024
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	256,038	$	256,038	$	—	$	—
Securities available for sale		872,190		87,304		784,886		—
Loans held for sale		3,999		—		4,109		—
Loans receivable, net of allowance for credit losses		6,109,570		—		—		6,011,407
Accrued interest receivable		23,032		23,032		—		—
Financial liabilities:
Noninterest-bearing deposits		1,933,060		—		1,933,060		—
Interest-bearing deposits		4,443,000		—		—		4,437,547
Borrowings and subordinated debentures		302,665		—		171,201		131,361
Accrued interest payable		38,007		38,007		—		—

	December 31, 2023
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	302,324	$	302,324	$	—	$	—
Securities available for sale		865,739		85,488		780,251		—
Loans held for sale		12,013		—		12,238		—
Loans receivable, net of allowance for credit losses		6,112,972		—		—		6,007,975
Accrued interest receivable		23,371		23,371		—		—
Financial liabilities:
Noninterest-bearing deposits		2,003,596		—		2,003,596		—
Interest-bearing deposits		4,276,978		—		—		4,271,711
Borrowings and subordinated debentures		455,012		—		323,491		128,229
Accrued interest payable		39,306		39,306		—		—

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Off-Balance Sheet Commitments (Tables)

3 Months Ended

Mar. 31, 2024

Risks and Uncertainties [Abstract]

Distribution of Total Loan Commitments

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

	March 31,		December 31,
	2024		2023
	(in thousands)
Unused commitments to extend credit	$	792,769	$	813,960
Standby letters of credit		83,772		83,725
Commercial letters of credit		35,929		33,140
Total commitments	$	912,470	$	930,825

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 March 31,
	2024			2023
	(in thousands)
Balance at beginning of period	$	2,474		$	3,114
Credit loss recovery		(177	)		(48	)
Balance at end of period	$	2,297		$	3,066

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Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Future Minimum Rental Commitments Under Non-cancelable Operating Leases

At March 31, 2024, 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)
2024	$	8,439
2025		7,550
2026		6,669
2027		6,593
2028		5,833
Thereafter		13,618
Remaining lease commitments		48,702
Interest		(4,716	)
Present value of lease liability	$	43,986

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of March 31, 2024 and December 31, 2023.

As of March 31, 2024	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	$	103,918	Other Assets	$	6,459	$	103,918	Other Liabilities	$	6,417
Total derivatives not designated as hedging instruments				$	6,459				$	6,417
Derivatives designated as hedging instruments
Interest rate products	$	—	Other Assets	$	—	$	175,000	Other Liabilities	$	1,901
Total derivatives designated as hedging instruments				$	—				$	1,901
As of December 31, 2023	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	$	104,571	Other Assets	$	5,939	$	104,571	Other Liabilities	$	5,920
Total derivatives not designated as hedging instruments				$	5,939				$	5,920
Derivatives designated as hedging instruments
Interest rate products	$	100,000	Other Assets	$	306	$	—	Other Liabilities	$	—
Total derivatives designated as hedging instruments				$	306				$	—

Summary of Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income

The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income as of March 31, 2024 and December 31, 2023.

As of March 31, 2024
Derivatives in Subtopic 815-20 Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative			Amount of Gain or (Loss) Recognized in OCI Included Component			Amount of Gain or (Loss) Recognized in OCI Excluded Component		Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component
	(in thousands)
Derivatives in Cash Flow Hedging Relationships
Interest Rate Products	$	(2,207	)	$	(2,207	)	$	—	Interest Income	$	—	$	—	$	—
Total	$	(2,207	)	$	(2,207	)	$	—		$	—	$	—	$	—
As of December 31, 2023
Derivatives in Subtopic 815-20 Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative			Amount of Gain or (Loss) Recognized in OCI Included Component			Amount of Gain or (Loss) Recognized in OCI Excluded Component		Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component
	(in thousands)
Derivatives in Cash Flow Hedging Relationships
Interest Rate Products	$	306		$	306		$	—	Interest Income	$	—	$	—	$	—
Total	$	306		$	306		$	—		$	—	$	—	$	—

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 months ended March 31, 2024 and 2023.

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 March 31,
		2024		2023
		(in thousands)
Interest rate products	Other income	$	23	$	(128	)
Total		$	23	$	(128	)

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 March 31, 2024 and December 31, 2023. 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 March 31, 2024
							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	$	6,459	$	—	$	6,459	$	1,901	$	4,558	$	—
Offsetting of Derivative Liabilities
As of March 31, 2024
							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	$	8,318	$	—	$	8,318	$	1,901	$	—	$	6,417
Offsetting of Derivative Assets
As of December 31, 2023
							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	$	6,245	$	—	$	6,245	$	284	$	5,731	$	230
Offsetting of Derivative Liabilities
As of December 31, 2023
							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	$	5,920	$	—	$	5,920	$	284	$	—	$	5,636

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Securities - Summary of Investment Securities Available for Sale (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 978,580	$ 967,031
Gross Unrealized Gain	354	891
Gross Unrealized Loss	(106,744)	(102,183)
Estimated Fair Value	872,190	865,739
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	88,407	86,355
Gross Unrealized Gain	21	173
Gross Unrealized Loss	(1,124)	(1,040)
Estimated Fair Value	87,304	85,488
Mortgage-backed securities - residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	489,714	504,544
Gross Unrealized Gain	226	481
Gross Unrealized Loss	(65,267)	(62,697)
Estimated Fair Value	424,673	442,328
Mortgage-backed securities - commercial
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	59,603	59,973
Gross Unrealized Loss	(12,383)	(11,982)
Estimated Fair Value	47,220	47,991
Collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	131,756	106,823
Gross Unrealized Gain	107	237
Gross Unrealized Loss	(10,128)	(9,649)
Estimated Fair Value	121,735	97,411
Debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	132,236	132,215
Gross Unrealized Loss	(7,420)	(7,590)
Estimated Fair Value	124,816	124,625
Total U.S. government agency and sponsored agency obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	813,309	803,555
Gross Unrealized Gain	333	718
Gross Unrealized Loss	(95,198)	(91,918)
Estimated Fair Value	718,444	712,355
Municipal bonds-tax exempt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	76,864	77,121
Gross Unrealized Loss	(10,422)	(9,225)
Estimated Fair Value	$ 66,442	$ 67,896

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Securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Available-for-Sale Within one year, Amortized Cost	$ 76,125	$ 62,521
Available-for-Sale Over one year through five years, Amortized Cost	156,571	169,176
Available-for-Sale Over five years through ten years, Amortized Cost	90,497	83,720
Available-for-Sale Over ten years, Amortized Cost	655,387	651,614
Amortized Cost	978,580	967,031
Available-for-Sale Within one year, Estimated Fair Value	75,255	61,828
Available-for-Sale Over one year through five years, Estimated Fair Value	148,475	160,983
Available-for-Sale Over five years through ten years, Estimated Fair Value	82,423	77,608
Available-for-Sale Over ten years, Estimated Fair Value	566,037	565,320
Estimated fair value	$ 872,190	$ 865,739

XML

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	Mar. 31, 2024 USD ($) Security	Dec. 31, 2023 USD ($) Security
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (515)	$ (106)
Available-for-Sale Within One Year, Estimated Fair Value	$ 98,971	$ 30,422
Available-for-Sale Within One Year, Number of Securities | Security	31	14
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (106,229)	$ (102,077)
Available-for-Sale More than One Year, Estimated Fair Value	$ 729,401	$ 747,988
Available-for-Sale More than One Year, Number of Securities | Security	214	213
Available-for-Sale, Gross Unrealized Loss	$ (106,744)	$ (102,183)
Available-for-Sale, Estimated Fair Value	$ 828,372	$ 778,410
Available-for-Sale, Number of Securities | Security	245	227
U.S. Treasury securities
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (159)	$ (57)
Available-for-Sale Within One Year, Estimated Fair Value	$ 43,837	$ 21,024
Available-for-Sale Within One Year, Number of Securities | Security	13	7
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (965)	$ (983)
Available-for-Sale More than One Year, Estimated Fair Value	$ 31,489	$ 32,449
Available-for-Sale More than One Year, Number of Securities | Security	11	11
Available-for-Sale, Gross Unrealized Loss	$ (1,124)	$ (1,040)
Available-for-Sale, Estimated Fair Value	$ 75,326	$ 53,473
Available-for-Sale, Number of Securities | Security	24	18
Mortgage-backed securities - residential
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (88)	$ (11)
Available-for-Sale Within One Year, Estimated Fair Value	$ 16,344	$ 2,324
Available-for-Sale Within One Year, Number of Securities | Security	8	5
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (65,179)	$ (62,686)
Available-for-Sale More than One Year, Estimated Fair Value	$ 395,536	$ 411,417
Available-for-Sale More than One Year, Number of Securities | Security	118	118
Available-for-Sale, Gross Unrealized Loss	$ (65,267)	$ (62,697)
Available-for-Sale, Estimated Fair Value	$ 411,880	$ 413,741
Available-for-Sale, Number of Securities | Security	126	123
Mortgage-backed securities - commercial
Summary of Investment Holdings [Line Items]
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (12,383)	$ (11,982)
Available-for-Sale More than One Year, Estimated Fair Value	$ 47,220	$ 47,991
Available-for-Sale More than One Year, Number of Securities | Security	15	15
Available-for-Sale, Gross Unrealized Loss	$ (12,383)	$ (11,982)
Available-for-Sale, Estimated Fair Value	$ 47,220	$ 47,991
Available-for-Sale, Number of Securities | Security	15	15
Collateralized mortgage obligations
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (268)	$ (38)
Available-for-Sale Within One Year, Estimated Fair Value	$ 38,790	$ 7,074
Available-for-Sale Within One Year, Number of Securities | Security	10	2
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (9,860)	$ (9,611)
Available-for-Sale More than One Year, Estimated Fair Value	$ 63,898	$ 63,610
Available-for-Sale More than One Year, Number of Securities | Security	25	24
Available-for-Sale, Gross Unrealized Loss	$ (10,128)	$ (9,649)
Available-for-Sale, Estimated Fair Value	$ 102,688	$ 70,684
Available-for-Sale, Number of Securities | Security	35	26
Debt securities
Summary of Investment Holdings [Line Items]
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (7,420)	$ (7,590)
Available-for-Sale More than One Year, Estimated Fair Value	$ 124,816	$ 124,625
Available-for-Sale More than One Year, Number of Securities | Security	26	26
Available-for-Sale, Gross Unrealized Loss	$ (7,420)	$ (7,590)
Available-for-Sale, Estimated Fair Value	$ 124,816	$ 124,625
Available-for-Sale, Number of Securities | Security	26	26
Total U.S. government agency and sponsored agency obligations
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (356)	$ (49)
Available-for-Sale Within One Year, Estimated Fair Value	$ 55,134	$ 9,398
Available-for-Sale Within One Year, Number of Securities | Security	18	7
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (94,842)	$ (91,869)
Available-for-Sale More than One Year, Estimated Fair Value	$ 631,470	$ 647,643
Available-for-Sale More than One Year, Number of Securities | Security	184	183
Available-for-Sale, Gross Unrealized Loss	$ (95,198)	$ (91,918)
Available-for-Sale, Estimated Fair Value	$ 686,604	$ 657,041
Available-for-Sale, Number of Securities | Security	202	190
Municipal bonds-tax exempt
Summary of Investment Holdings [Line Items]
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (10,422)	$ (9,225)
Available-for-Sale More than One Year, Estimated Fair Value	$ 66,442	$ 67,896
Available-for-Sale More than One Year, Number of Securities | Security	19	19
Available-for-Sale, Gross Unrealized Loss	$ (10,422)	$ (9,225)
Available-for-Sale, Estimated Fair Value	$ 66,442	$ 67,896
Available-for-Sale, Number of Securities | Security	19	19

XML

Securities - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Unrealized loss on securities	$ 0
Available for sale securities pledged as collateral	$ 23,800,000	$ 24,800,000
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%

XML

Loans - Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	$ 6,177,840	$ 6,182,434
Allowance for credit losses	(68,270)	(69,462)
Loans receivable, net	6,109,570	6,112,972
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable		962,661
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	4,849,039	4,852,400
Allowance for credit losses	(42,584)	(45,499)
Real Estate | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	1,091,059	1,107,360
Allowance for credit losses	(10,095)	(10,264)
Real Estate | Hospitality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	740,160	740,519
Allowance for credit losses	(11,668)	(15,534)
Real Estate | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	575,847	574,981
Real Estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	1,367,395	1,366,534
Real Estate | Total commercial property loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	3,774,461	3,789,394
Allowance for credit losses	(33,773)	(37,485)
Real Estate | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	104,216	100,345
Allowance for credit losses	(2,611)	(2,756)
Real Estate | Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	970,362	962,661
Allowance for credit losses	(6,200)	(5,258)
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	774,851	747,819
Allowance for credit losses	(11,836)	(10,257)
Equipment Financing Agreements
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	553,950	582,215
Allowance for credit losses	$ (13,850)	$ (13,706)

XML

Loans - Loans (Detail) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	$ 6,177,840	$ 6,182,434
Payment Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	100	200
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	4,849,039	4,852,400
Real Estate | Home Equity Loans and Lines - Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	1,500	1,900
Real Estate | Personal Loans - Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	$ 5,300	$ 4,500

XML

Loans - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2024 USD ($) Loan	Mar. 31, 2023 USD ($) Loan	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest on loans	$ 23,032,000		$ 23,371,000
Pledged loans receivable, carrying value	2,450,000,000		2,360,000,000
Loans receivable	6,177,840,000		6,182,434,000
Loans held for sale, at the lower of cost or fair value	3,999,000	$ 3,652,000	12,013,000	$ 8,043,000
Gains on sale of second draw PPP loans	1,482,000	1,869,000
Proceeds from sale of second draw PPP loans	25,587,000	29,699,000
Interest income on nonaccrual loans	$ 9,000	$ 104,000
Number of loan modified | Loan	0	0
Other real estate owned ("OREO")	$ 117,000		117,000
Loans Pledged to Secure Advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pledged loans receivable, carrying value	2,450,000,000		2,360,000,000
Payment Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	100,000		200,000
Prepaid Expenses and Other Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other real estate owned ("OREO")	100,000		100,000
Loans | Accrued Interest
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest on loans	$ 19,500,000		$ 19,800,000

XML

Loans - Activity for Loans Held for Sale (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	$ 12,013	$ 8,043
Originations and transfers	17,632	25,316
Sales	(25,587)	(29,699)
Principal paydowns and amortization	(59)	(8)
Balance at end of period	3,999	3,652
Real Estate
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	8,792	3,775
Originations and transfers	9,614	16,387
Sales	(16,900)	(19,781)
Principal paydowns and amortization	(52)	(2)
Balance at end of period	1,454	379
Commercial and Industrial
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	3,221	4,268
Originations and transfers	8,018	8,929
Sales	(8,687)	(9,918)
Principal paydowns and amortization	(7)	(6)
Balance at end of period	$ 2,545	$ 3,273

XML

Loans - Loans Purchased by Portfolio Segment (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchases of loans receivable	$ 10,198
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchases of loans receivable	274
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchases of loans receivable	$ 9,924

XML

Loans - Allowance for Credit Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	$ 69,462
Ending balance	68,270
Non-PCI Loans and Leases
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	69,462	$ 71,523
Chargeoffs	(2,123)	(2,238)
Recoveries	527	783
Credit loss expense (recovery)	404	2,181
Ending balance	68,270	72,249
Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	45,499
Ending balance	42,584
Real Estate | Non-PCI Loans and Leases
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	45,499	44,026
Chargeoffs		(412)
Recoveries	46	68
Credit loss expense (recovery)	(2,961)	(151)
Ending balance	42,584	43,531
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	10,257
Ending balance	11,836
Commercial and Industrial | Non-PCI Loans and Leases
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	10,257	15,267
Chargeoffs	(155)	(210)
Recoveries	58	235
Credit loss expense (recovery)	1,676	41
Ending balance	11,836	15,333
Equipment Financing Agreements
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	13,706
Ending balance	13,850
Equipment Financing Agreements | Non-PCI Loans and Leases
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning balance	13,706	12,230
Chargeoffs	(1,968)	(1,616)
Recoveries	423	480
Credit loss expense (recovery)	1,689	2,291
Ending balance	$ 13,850	$ 13,385

XML

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	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 68,270	$ 69,462
Percentage of Total Allowance	100.00%	100.00%
Total Loans	$ 6,177,840	$ 6,182,434
Percentage of Total Loans	100.00%	100.00%
Residential
Financing Receivable Allowance For Credit Losses [Line Items]
Total Loans		$ 962,661
Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 42,584	$ 45,499
Percentage of Total Allowance	62.40%	65.50%
Total Loans	$ 4,849,039	$ 4,852,400
Percentage of Total Loans	78.50%	78.50%
Real Estate | Retail
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 10,095	$ 10,264
Percentage of Total Allowance	14.80%	14.80%
Total Loans	$ 1,091,059	$ 1,107,360
Percentage of Total Loans	17.70%	17.90%
Real Estate | Hospitality
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 11,668	$ 15,534
Percentage of Total Allowance	17.10%	22.40%
Total Loans	$ 740,160	$ 740,519
Percentage of Total Loans	12.00%	12.00%
Real Estate | Office
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 3,740	$ 3,024
Percentage of Total Allowance	5.50%	4.40%
Total Loans	$ 575,847	$ 574,981
Percentage of Total Loans	9.30%	9.30%
Real Estate | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 8,270	$ 8,663
Percentage of Total Allowance	12.10%	12.40%
Total Loans	$ 1,367,395	$ 1,366,534
Percentage of Total Loans	22.10%	22.10%
Real Estate | Total commercial property loans
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 33,773	$ 37,485
Percentage of Total Allowance	49.50%	54.00%
Total Loans	$ 3,774,461	$ 3,789,394
Percentage of Total Loans	61.10%	61.30%
Real Estate | Construction
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 2,611	$ 2,756
Percentage of Total Allowance	3.80%	4.00%
Total Loans	$ 104,216	$ 100,345
Percentage of Total Loans	1.70%	1.60%
Real Estate | Residential
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 6,200	$ 5,258
Percentage of Total Allowance	9.10%	7.50%
Total Loans	$ 970,362	$ 962,661
Percentage of Total Loans	15.70%	15.60%
Commercial and Industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 11,836	$ 10,257
Percentage of Total Allowance	17.30%	14.80%
Total Loans	$ 774,851	$ 747,819
Percentage of Total Loans	12.50%	12.10%
Equipment Financing Agreements
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 13,850	$ 13,706
Percentage of Total Allowance	20.30%	19.70%
Total Loans	$ 553,950	$ 582,215
Percentage of Total Loans	9.00%	9.40%

XML

Loans - Summary of Amortized Cost Basis of Collateral Dependent Loans By Class of Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	$ 6,373	$ 7,352
Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	2,446	2,174
Real Estate | Retail
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost		1,530
Real Estate | Hospitality
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	299	338
Real Estate | Other
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	2,147	305
Real Estate | Total commercial property loans
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	2,446	2,173
Real Estate | Residential
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost		1
Commercial and Industrial
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	$ 3,927	$ 5,178

XML

Loans - Loans by Vintage Year and Risk Rating (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
2024	$ 350,251	$ 1,447,774
2024 - YTD gross		178
2024 - YTD net		178
2023	1,193,962	1,766,797
2023 - YTD gross	19	3,961
2023 - YTD Net	19	3,749
2022	1,722,619	1,241,680
2022 - YTD gross	1,490	3,267
2022 - YTD net	1,333	2,851
2021	1,201,596	647,431
2021 - YTD gross	400	797
2021- YTD net	310	647
2020	622,989	413,856
2020 - YTD gross	170	909
2020 - YTD net	159	351
Prior	741,109	380,747
Prior - Gross	44	858
Prior - Net	(191)	(6,823)
Revolving Loans Amortized Cost Basis	345,314	284,149
Revolving Loans Amortized Cost Basis - YTD gross		6,120
Revolving Loans Amortized Cost Basis - YTD net	(34)	6,090
Loans receivable	6,177,840	6,182,434
Loans receivable gross chargeoff	2,123	16,090
Loans receivable net chargeoff	1,596	7,043
Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2024	343,876	1,439,588
2023	1,193,116	1,742,971
2022	1,700,139	1,203,259
2021	1,168,304	641,294
2020	617,046	407,087
Prior	729,646	374,248
Revolving Loans Amortized Cost Basis	339,728	277,305
Loans receivable	6,091,855	6,085,752
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2024	4,802	4,400
2023		18,575
2022	17,574	31,577
2021	31,563	5,772
2020	5,727	711
Prior	991	2,375
Revolving Loans Amortized Cost Basis	1,659	1,905
Loans receivable	62,316	65,315
Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2024	1,573	3,786
2023	846	5,251
2022	4,906	6,844
2021	1,729	365
2020	216	6,058
Prior	10,472	4,124
Revolving Loans Amortized Cost Basis	3,927	4,939
Loans receivable	23,669	31,367
Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable		962,661
Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2024	217,316	1,053,519
2023	896,885	1,367,611
2022	1,353,404	1,053,915
2021	1,035,364	591,276
2021 - YTD gross		411
2021- YTD net		403
2020	585,699	384,573
2020 - YTD net	(5)
Prior	705,994	364,339
Prior - Gross		216
Prior - Net	(41)	(88)
Revolving Loans Amortized Cost Basis	54,377	37,167
Loans receivable	4,849,039	4,852,400
Loans receivable gross chargeoff		627
Loans receivable net chargeoff	(46)	315
Real Estate | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2024	211,344	1,046,054
2023	896,885	1,362,534
2022	1,348,228	1,017,439
2021	1,003,801	585,606
2020	580,071	378,284
Prior	695,350	358,136
Revolving Loans Amortized Cost Basis	52,718	35,261
Loans receivable	4,788,397	4,783,314
Real Estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2024	4,399	4,400
2023		3,997
2022	3,979	31,577
2021	31,563	5,670
2020	5,628	711
Prior	967	2,310
Revolving Loans Amortized Cost Basis	1,659	1,906
Loans receivable	48,195	50,571
Real Estate | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2024	1,573	3,065
2023		1,080
2022	1,197	4,899
2020		5,578
Prior	9,677	3,893
Loans receivable	12,447	18,515
Real Estate | Total commercial property loans
Financing Receivable, Credit Quality Indicator [Line Items]
2024	115,282	691,284
2023	614,621	991,899
2022	983,439	866,991
2021	850,715	578,620
2021 - YTD gross		411
2021- YTD net		403
2020	573,189	384,356
2020 - YTD net	(5)
Prior	588,865	244,602
Prior - Gross		216
Prior - Net	(41)	(81)
Revolving Loans Amortized Cost Basis	48,350	31,642
Loans receivable	3,774,461	3,789,394
Loans receivable gross chargeoff		627
Loans receivable net chargeoff	(46)	322
Real Estate | Total commercial property loans | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2024	109,310	683,819
2023	614,621	986,822
2022	978,263	858,821
2021	847,463	572,950
2020	567,561	378,067
Prior	578,221	238,400
Revolving Loans Amortized Cost Basis	46,941	30,236
Loans receivable	3,742,380	3,749,115
Real Estate | Total commercial property loans | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2024	4,399	4,400
2023		3,997
2022	3,979	3,271
2021	3,252	5,670
2020	5,628	711
Prior	967	2,310
Revolving Loans Amortized Cost Basis	1,409	1,406
Loans receivable	19,634	21,765
Real Estate | Total commercial property loans | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2024	1,573	3,065
2023		1,080
2022	1,197	4,899
2020		5,578
Prior	9,677	3,892
Loans receivable	12,447	18,514
Real Estate | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2024	49,902	72,039
2023	26,003
2022		28,306
2021	28,311
Loans receivable	104,216	100,345
Real Estate | Construction | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2024	49,902	72,039
2023	26,003
Loans receivable	75,905	72,039
Real Estate | Construction | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2022		28,306
2021	28,311
Loans receivable	28,311	28,306
Real Estate | Residential
Financing Receivable, Credit Quality Indicator [Line Items]
2024	52,132	290,196
2023	256,261	375,712
2022	369,965	158,618
2021	156,338	12,656
2020	12,510	217
Prior	117,129	119,737
Prior - Net		(7)
Revolving Loans Amortized Cost Basis	6,027	5,525
Loans receivable	970,362	962,661
Loans receivable net chargeoff		(7)
Real Estate | Residential | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2024	52,132	290,196
2023	256,261	375,712
2022	369,965	158,618
2021	156,338	12,656
2020	12,510	217
Prior	117,129	119,736
Revolving Loans Amortized Cost Basis	5,777	5,025
Loans receivable	970,112	962,160
Real Estate | Residential | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Revolving Loans Amortized Cost Basis	250	500
Loans receivable	250	500
Real Estate | Residential | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
Prior		1
Loans receivable		1
Real Estate | Residential
Financing Receivable, Credit Quality Indicator [Line Items]
2024	52,132	290,196
2023	256,261	375,712
2022	369,965	158,618
2021	156,338	12,656
2020	12,510	217
Prior	117,129	119,737
Prior - Net		(7)
Revolving Loans Amortized Cost Basis	6,027	5,525
Loans receivable	970,362	962,661
Loans receivable net chargeoff		(7)
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2024	97,417	178,193
2023	98,018	183,787
2023 - YTD gross		17
2023 - YTD Net		5
2022	174,918	84,198
2022 - YTD gross	126
2022 - YTD net	126	(7)
2021	76,197	31,450
2020	17,467	10,050
2020 - YTD gross		110
2020 - YTD net		101
Prior	19,897	13,159
Prior - Gross	29	410
Prior - Net	5	(6,621)
Revolving Loans Amortized Cost Basis	290,937	246,982
Revolving Loans Amortized Cost Basis - YTD gross		6,120
Revolving Loans Amortized Cost Basis - YTD net	(34)	6,090
Loans receivable	774,851	747,819
Loans receivable gross chargeoff	155	6,657
Loans receivable net chargeoff	97	(432)
Commercial and Industrial | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2024	97,014	177,864
2023	98,018	169,209
2022	161,227	84,198
2021	76,197	31,348
2020	17,368	9,971
Prior	19,615	12,920
Revolving Loans Amortized Cost Basis	287,010	242,044
Loans receivable	756,449	727,554
Commercial and Industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2024	403
2023		14,578
2022	13,595
2021		102
2020	99
Prior	24	65
Revolving Loans Amortized Cost Basis		(1)
Loans receivable	14,121	14,744
Commercial and Industrial | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2024		329
2022	96
2020		79
Prior	258	174
Revolving Loans Amortized Cost Basis	3,927	4,939
Loans receivable	4,281	5,521
Equipment Financing Agreements
Financing Receivable, Credit Quality Indicator [Line Items]
2024	35,518	216,062
2024 - YTD gross		178
2024 - YTD net		178
2023	199,059	215,399
2023 - YTD gross	19	3,944
2023 - YTD Net	19	3,744
2022	194,297	103,567
2022 - YTD gross	1,364	3,267
2022 - YTD net	1,207	2,858
2021	90,035	24,705
2021 - YTD gross	400	386
2021- YTD net	310	244
2020	19,823	19,233
2020 - YTD gross	170	799
2020 - YTD net	164	250
Prior	15,218	3,249
Prior - Gross	15	232
Prior - Net	(155)	(114)
Loans receivable	553,950	582,215
Loans receivable gross chargeoff	1,968	8,806
Loans receivable net chargeoff	1,545	7,160
Equipment Financing Agreements | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2024	35,518	215,670
2023	198,213	211,228
2022	190,684	101,622
2021		24,340
2021 - YTD gross	88,306
2020	19,607	18,832
Prior		3,192
Prior - Gross	14,681
Loans receivable	547,009	574,884
Equipment Financing Agreements | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2024		392
2023	846	4,171
2022	3,613	1,945
2021		365
2021 - YTD gross	1,729
2020	216	401
Prior		57
Prior - Gross	537
Loans receivable	$ 6,941	$ 7,331

XML

Loans - Loans by Vintage Year and Payment Performance (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
2024	$ 350,251	$ 1,447,774
2024 - YTD gross		178
2024 - YTD net		178
2023	1,193,962	1,766,797
2023 - YTD gross	19	3,961
2023 - YTD Net	19	3,749
2022	1,722,619	1,241,680
2022 - YTD gross	1,490	3,267
2022 - YTD net	1,333	2,851
2021	1,201,596	647,431
2021 - YTD gross	400	797
2021- YTD net	310	647
2020	622,989	413,856
2020 - YTD gross	170	909
2020 - YTD net	159	351
Prior	741,109	380,747
Prior - Gross	44	858
Prior - Net	(191)	(6,823)
Revolving Loans Amortized Cost Basis	345,314	284,149
Revolving Loans Amortized Cost Basis - YTD gross		6,120
Revolving Loans Amortized Cost Basis - YTD net	(34)	6,090
Loans receivable	6,177,840	6,182,434
Loans receivable gross chargeoff	2,123	16,090
Loans receivable net chargeoff	1,596	7,043
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024	348,678	1,445,218
2023	1,193,116	1,762,626
2022	1,718,867	1,239,585
2021	1,199,867	647,031
2020	622,773	413,386
Prior	739,128	379,813
Revolving Loans Amortized Cost Basis	341,387	279,301
Loans receivable	6,163,816	6,166,960
Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2024	1,573	2,556
2023	846	4,171
2022	3,752	2,095
2021	1,729	400
2020	216	470
Prior	1,981	934
Revolving Loans Amortized Cost Basis	3,927	4,848
Loans receivable	14,024	15,474
Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable		962,661
Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2024	217,316	1,053,519
2023	896,885	1,367,611
2022	1,353,404	1,053,915
2021	1,035,364	591,276
2021 - YTD gross		411
2021- YTD net		403
2020	585,699	384,573
2020 - YTD net	(5)
Prior	705,994	364,339
Prior - Gross		216
Prior - Net	(41)	(88)
Revolving Loans Amortized Cost Basis	54,377	37,167
Loans receivable	4,849,039	4,852,400
Loans receivable gross chargeoff		627
Loans receivable net chargeoff	(46)	315
Real Estate | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024	215,743	1,051,684
2023	896,885	1,367,611
2022	1,353,279	1,053,765
2021	1,035,364	591,276
2020	585,699	384,492
Prior	704,638	363,555
Revolving Loans Amortized Cost Basis	54,377	37,167
Loans receivable	4,845,985	4,849,550
Real Estate | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2024	1,573	1,835
2022	125	150
2020		81
Prior	1,356	784
Loans receivable	3,054	2,850
Real Estate | Total commercial property loans
Financing Receivable, Credit Quality Indicator [Line Items]
2024	115,282	691,284
2023	614,621	991,899
2022	983,439	866,991
2021	850,715	578,620
2021 - YTD gross		411
2021- YTD net		403
2020	573,189	384,356
2020 - YTD net	(5)
Prior	588,865	244,602
Prior - Gross		216
Prior - Net	(41)	(81)
Revolving Loans Amortized Cost Basis	48,350	31,642
Loans receivable	3,774,461	3,789,394
Loans receivable gross chargeoff		627
Loans receivable net chargeoff	(46)	322
Real Estate | Total commercial property loans | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024	113,709	689,449
2023	614,621	991,899
2022	983,314	866,841
2021	850,715	578,620
2020	573,189	384,275
Prior	587,509	243,819
Revolving Loans Amortized Cost Basis	48,350	31,642
Loans receivable	3,771,407	3,786,545
Real Estate | Total commercial property loans | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2024	1,573	1,835
2022	125	150
2020		81
Prior	1,356	783
Loans receivable	3,054	2,849
Real Estate | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2024	49,902	72,039
2023	26,003
2022		28,306
2021	28,311
Loans receivable	104,216	100,345
Real Estate | Construction | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024	49,902	72,039
2023	26,003
2022		28,306
2021	28,311
Loans receivable	104,216	100,345
Real Estate | Residential
Financing Receivable, Credit Quality Indicator [Line Items]
2024	52,132	290,196
2023	256,261	375,712
2022	369,965	158,618
2021	156,338	12,656
2020	12,510	217
Prior	117,129	119,737
Prior - Net		(7)
Revolving Loans Amortized Cost Basis	6,027	5,525
Loans receivable	970,362	962,661
Loans receivable net chargeoff		(7)
Real Estate | Residential | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024	52,132	290,196
2023	256,261	375,712
2022	369,965	158,618
2021	156,338	12,656
2020	12,510	217
Prior	117,129	119,736
Revolving Loans Amortized Cost Basis	6,027	5,525
Loans receivable	970,362	962,660
Real Estate | Residential | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Prior		1
Loans receivable		1
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2024	97,417	178,193
2023	98,018	183,787
2023 - YTD gross		17
2023 - YTD Net		5
2022	174,918	84,198
2022 - YTD gross	126
2022 - YTD net	126	(7)
2021	76,197	31,450
2020	17,467	10,050
2020 - YTD gross		110
2020 - YTD net		101
Prior	19,897	13,159
Prior - Gross	29	410
Prior - Net	5	(6,621)
Revolving Loans Amortized Cost Basis	290,937	246,982
Revolving Loans Amortized Cost Basis - YTD gross		6,120
Revolving Loans Amortized Cost Basis - YTD net	(34)	6,090
Loans receivable	774,851	747,819
Loans receivable gross chargeoff	155	6,657
Loans receivable net chargeoff	97	(432)
Commercial and Industrial | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024	97,417	177,864
2023	98,018	183,787
2022	174,904	84,198
2021	76,197	31,415
2020	17,467	10,050
Prior	19,809	13,066
Revolving Loans Amortized Cost Basis	287,010	242,134
Loans receivable	770,822	742,514
Commercial and Industrial | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2024		329
2022	14
2021		35
Prior	88	93
Revolving Loans Amortized Cost Basis	3,927	4,848
Loans receivable	4,029	5,305
Equipment Financing Agreements
Financing Receivable, Credit Quality Indicator [Line Items]
2024	35,518	216,062
2024 - YTD gross		178
2024 - YTD net		178
2023	199,059	215,399
2023 - YTD gross	19	3,944
2023 - YTD Net	19	3,744
2022	194,297	103,567
2022 - YTD gross	1,364	3,267
2022 - YTD net	1,207	2,858
2021	90,035	24,705
2021 - YTD gross	400	386
2021- YTD net	310	244
2020	19,823	19,233
2020 - YTD gross	170	799
2020 - YTD net	164	250
Prior	15,218	3,249
Prior - Gross	15	232
Prior - Net	(155)	(114)
Loans receivable	553,950	582,215
Loans receivable gross chargeoff	1,968	8,806
Loans receivable net chargeoff	1,545	7,160
Equipment Financing Agreements | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024	35,518	215,670
2023	198,213	211,228
2022	190,684	101,622
2021	88,306	24,340
2020	19,607	18,844
Prior	14,681	3,192
Loans receivable	547,009	574,896
Equipment Financing Agreements | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2024		392
2023	846	4,171
2022	3,613	1,945
2021	1,729	365
2020	216	389
Prior	537	57
Loans receivable	$ 6,941	$ 7,319

XML

Loans - Analysis of Past Due Loans, Including Loans on Nonaccrual Status, Disaggregated by Loan Class, Non-PCI (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Total Loans	$ 6,177,840	$ 6,182,434
Residential
Financing Receivable, Past Due [Line Items]
Total Loans		962,661
30-59 Days Past Due | Residential
Financing Receivable, Past Due [Line Items]
Past due loans receivable		521
60-89 Days Past Due | Residential
Financing Receivable, Past Due [Line Items]
Past due loans receivable		336
90 Days or More Past Due | Residential
Financing Receivable, Past Due [Line Items]
Past due loans receivable		1
Current | Residential
Financing Receivable, Past Due [Line Items]
Total Loans	970,362
Non-PCI Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	25,713	21,451
Non-PCI Loans | Residential
Financing Receivable, Past Due [Line Items]
Past due loans receivable		858
Non-PCI Loans | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	13,456	8,959
Non-PCI Loans | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	7,759	2,740
Non-PCI Loans | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	4,498	9,752
Non-PCI Loans | Current
Financing Receivable, Past Due [Line Items]
Total Loans	6,152,127	6,160,983
Non-PCI Loans | Current | Residential
Financing Receivable, Past Due [Line Items]
Total Loans		961,803
Real Estate
Financing Receivable, Past Due [Line Items]
Total Loans	4,849,039	4,852,400
Real Estate | Retail
Financing Receivable, Past Due [Line Items]
Total Loans	1,091,059	1,107,360
Real Estate | Hospitality
Financing Receivable, Past Due [Line Items]
Total Loans	740,160	740,519
Real Estate | Office
Financing Receivable, Past Due [Line Items]
Total Loans	575,847	574,981
Real Estate | Other
Financing Receivable, Past Due [Line Items]
Total Loans	1,367,395	1,366,534
Real Estate | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Total Loans	3,774,461	3,789,394
Real Estate | Construction
Financing Receivable, Past Due [Line Items]
Total Loans	104,216	100,345
Real Estate | Residential
Financing Receivable, Past Due [Line Items]
Total Loans	970,362	962,661
Real Estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable		1,745
Real Estate | 30-59 Days Past Due | Retail
Financing Receivable, Past Due [Line Items]
Past due loans receivable	757	632
Real Estate | 30-59 Days Past Due | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	2,950	592
Real Estate | 30-59 Days Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable		1,224
Real Estate | 30-59 Days Past Due | Residential
Financing Receivable, Past Due [Line Items]
Past due loans receivable	2,190
Real Estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable		486
Real Estate | 60-89 Days Past Due | Hospitality
Financing Receivable, Past Due [Line Items]
Past due loans receivable		150
Real Estate | 60-89 Days Past Due | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	366
Real Estate | 60-89 Days Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable		150
Real Estate | 60-89 Days Past Due | Residential
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,410
Real Estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable		23
Real Estate | 90 Days or More Past Due | Hospitality
Financing Receivable, Past Due [Line Items]
Past due loans receivable		22
Real Estate | 90 Days or More Past Due | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	574
Real Estate | 90 Days or More Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable		22
Real Estate | Current | Office
Financing Receivable, Past Due [Line Items]
Total Loans	575,847
Real Estate | Non-PCI Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	8,247	2,254
Real Estate | Non-PCI Loans | Retail
Financing Receivable, Past Due [Line Items]
Past due loans receivable	757	632
Real Estate | Non-PCI Loans | Hospitality
Financing Receivable, Past Due [Line Items]
Past due loans receivable		172
Real Estate | Non-PCI Loans | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,890	592
Real Estate | Non-PCI Loans | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	4,647	1,396
Real Estate | Non-PCI Loans | Residential
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,600
Real Estate | Non-PCI Loans | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	5,897
Real Estate | Non-PCI Loans | 30-59 Days Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,707
Real Estate | Non-PCI Loans | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,776
Real Estate | Non-PCI Loans | 60-89 Days Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	366
Real Estate | Non-PCI Loans | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	574
Real Estate | Non-PCI Loans | 90 Days or More Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	574
Real Estate | Non-PCI Loans | Current
Financing Receivable, Past Due [Line Items]
Total Loans	4,840,792	4,850,146
Real Estate | Non-PCI Loans | Current | Retail
Financing Receivable, Past Due [Line Items]
Total Loans	1,090,302	1,106,728
Real Estate | Non-PCI Loans | Current | Hospitality
Financing Receivable, Past Due [Line Items]
Total Loans	740,160	740,347
Real Estate | Non-PCI Loans | Current | Office
Financing Receivable, Past Due [Line Items]
Total Loans	575,847	574,981
Real Estate | Non-PCI Loans | Current | Other
Financing Receivable, Past Due [Line Items]
Total Loans	1,363,505	1,365,942
Real Estate | Non-PCI Loans | Current | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Total Loans	3,769,814	3,787,998
Real Estate | Non-PCI Loans | Current | Construction
Financing Receivable, Past Due [Line Items]
Total Loans	104,216	100,345
Real Estate | Non-PCI Loans | Current | Residential
Financing Receivable, Past Due [Line Items]
Total Loans	966,762
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Total Loans	774,851	747,819
Commercial and Industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	107	76
Commercial and Industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,989	120
Commercial and Industrial | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable		5,178
Commercial and Industrial | Non-PCI Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	4,096	5,374
Commercial and Industrial | Non-PCI Loans | Current
Financing Receivable, Past Due [Line Items]
Total Loans	770,755	742,445
Equipment Financing Agreements
Financing Receivable, Past Due [Line Items]
Total Loans	553,950	582,215
Equipment Financing Agreements | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	7,452	7,138
Equipment Financing Agreements | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,994	2,134
Equipment Financing Agreements | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,924	4,551
Equipment Financing Agreements | Non-PCI Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	13,370	13,823
Equipment Financing Agreements | Non-PCI Loans | Current
Financing Receivable, Past Due [Line Items]
Total Loans	$ 540,580	$ 568,392

XML

Loans - Schedule of Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due 90 Days and Still Accruing (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	$ 3,264	$ 8,144
Nonaccrual Loans With Allowance for Credit Losses	10,760	7,330
Total Nonperforming Loans	14,024	15,474
Real Estate
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	2,601	2,361
Nonaccrual Loans With Allowance for Credit Losses	453	489
Total Nonperforming Loans	3,054	2,850
Real Estate | Retail
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	161	1,717
Nonaccrual Loans With Allowance for Credit Losses	437	321
Total Nonperforming Loans	598	2,038
Real Estate | Hospitality
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	292	338
Nonaccrual Loans With Allowance for Credit Losses		150
Total Nonperforming Loans	292	488
Real Estate | Other
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	2,148	305
Nonaccrual Loans With Allowance for Credit Losses	16	18
Total Nonperforming Loans	2,164	323
Real Estate | Total commercial property loans
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	2,601	2,360
Nonaccrual Loans With Allowance for Credit Losses	453	489
Total Nonperforming Loans	3,054	2,849
Real Estate | Residential
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses		1
Total Nonperforming Loans		1
Equipment Financing Agreements
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	663	570
Nonaccrual Loans With Allowance for Credit Losses	6,278	6,749
Total Nonperforming Loans	6,941	7,319
Commercial and Industrial
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses		5,213
Nonaccrual Loans With Allowance for Credit Losses	4,029	92
Total Nonperforming Loans	$ 4,029	$ 5,305

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Loans - Non-Performing Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Receivables [Abstract]
Nonaccrual loans	$ 14,024	$ 15,474
Total Nonperforming Loans	14,024	15,474
Other real estate owned ("OREO")	117	117
Total nonperforming assets	$ 14,141	$ 15,591

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Servicing Assets - Summary of Changes in Servicing Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Transfers and Servicing [Abstract]
Balance at beginning of period	$ 7,070	$ 7,176
Addition related to sale of SBA loans	514	615
Amortization	(694)	(635)
Change in valuation allowance		385
Balance at end of period	$ 6,890	$ 7,541

XML

Servicing Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Serviced loans sold to unaffiliated parties	$ 536,000		$ 539,600
Servicing fee income	$ 1,300	$ 1,300
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Noninterest Income, Other Operating Income	Noninterest Income, Other Operating Income
Amortization expense	$ 694	$ 634
Fair value of servicing rights	$ 8,300		$ 7,700
Minimum
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Discount rates ranging	11.10%		14.40%
Prepayment speeds	11.40%		12.20%
Maximum
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Discount rates ranging	22.20%		24.70%
Prepayment speeds	20.50%		19.70%

XML

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes for continuing operations	$ 6,552,000	$ 9,274,000
Effective income tax rate	30.20%	29.70%
Valuation allowance	$ 1,900,000		$ 1,900,000
Net deferred tax asset	35,900,000		$ 35,200,000
Change in uncertain tax positions	$ 0

XML

Goodwill and Other Intangibles - Additional Information (Detail) - USD ($)			3 Months Ended
	Oct. 27, 2016	Aug. 31, 2014	Mar. 31, 2024
Finite-Lived Intangible Assets [Line Items]
Impairment of goodwill and other intangible assets			$ 0
Goodwill and other intangible assets triggering event			No triggering event occurred as of, or subsequent to March 31, 2024, 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 originator's 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	Mar. 31, 2024	Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (2,170)	$ (2,628)
Goodwill	11,031	11,031
Gross carrying amount	13,244	13,727
Net carrying amount	$ 11,074	11,099
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	(2,170)	(2,145)
Net carrying amount, excluding goodwill	$ 43	68
Third-party originator's intangible
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period	7 years
Gross carrying amount, excluding goodwill		483
Accumulated amortization		$ (483)

XML

Deposits - Scheduled Maturities of Time Deposits (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Restricted Cash And Cash Equivalents Items [Line Items]
2024	$ 2,082,207	$ 2,440,339
2025	408,422	10,133
2026	4,017	3,405
2027	807	572
2028 and thereafter	308	418
Total	2,495,761	2,454,867
Time Deposits More Than $250,000
Restricted Cash And Cash Equivalents Items [Line Items]
2024	835,582	995,830
2025	158,310	3,928
2026	263	263
Total	994,155	1,000,021
Other Time Deposits
Restricted Cash And Cash Equivalents Items [Line Items]
2024	1,246,625	1,444,509
2025	250,112	6,205
2026	3,754	3,142
2027	807	572
2028 and thereafter	308	418
Total	$ 1,501,606	$ 1,454,846

XML

Deposits - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Accrued interest payable on deposits	$ 37.9	$ 39.2
Total deposits reclassified to loans due to overdrafts	$ 1.5	$ 1.6

XML

Borrowings and Subordinated Debentures - Additional Information (Detail) - USD ($)		1 Months Ended	3 Months Ended
	Aug. 20, 2021	Dec. 31, 2005	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2014
Debt Instrument [Line Items]
Overnight advances from federal home loan banks			$ 60,000,000		$ 212,500,000
Overnight advances (percent)			5.69%		5.70%
Advances from the FHLB			$ 112,500,000		$ 112,500,000
Weighted average interest rate of outstanding advances (percent)			3.91%		2.77%
Interest expense on borrowings			$ 1,655,000	$ 2,369,000
Pledged loans receivable, carrying value			2,450,000,000		$ 2,360,000,000
Remaining available borrowing capacity			1,330,000,000		1,090,000,000.00
Loans pledged with FRB			23,800,000		24,800,000
Borrowing capacity through Fed Discount Window			22,300,000		23,200,000
Subordinated debentures issued			136,800,000		136,800,000
Debt instrument, maturity date	Sep. 01, 2031
2031 Notes
Debt Instrument [Line Items]
Subordinated debentures issued	$ 110,000,000
Fixed interest rate	3.75%
Amortization of debt issuance costs	$ 2,100,000
Debt issuance costs, net			$ 108,400,000		108,300,000
Subordinated debentures | Central Bancorp, Inc
Debt Instrument [Line Items]
Subordinated debentures issued		$ 26,000,000
Debt instrument, maturity date			Mar. 15, 2036
Fixed interest rate		6.26%
Debt outstanding, net of issuance cost			$ 21,800,000		21,700,000
Unpaid principal balance						$ 26,800,000
Estimated fair value						18,500,000
Debt instrument discount			$ 5,000,000		$ 5,100,000	$ 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			$ 106,000,000	$ 104,000,000
Benchmark Rate | 2031 Notes
Debt Instrument [Line Items]
Basis spread	3.10%
3-month London Interbank Offered Rate (LIBOR) | Subordinated debentures | Central Bancorp, Inc
Debt Instrument [Line Items]
Fixed interest rate			6.99%
Basis spread		1.40%
3-Month Secured Overnight Financing Rate (SOFR ) | Subordinated debentures | Central Bancorp, Inc
Debt Instrument [Line Items]
Basis spread			1.66%
3-Month Secured Overnight Financing Rate (SOFR ) | Credit Spread | Subordinated debentures | Central Bancorp, Inc
Debt Instrument [Line Items]
Basis spread			1.40%
3-Month Secured Overnight Financing Rate (SOFR ) | Adjustment to Convert 3-month LIBOR to 3-month SOFR | Subordinated debentures | Central Bancorp, Inc
Debt Instrument [Line Items]
Basis spread			0.26%

XML

Borrowings and Subordinated Debentures - Schedule of Borrowings (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Outstanding Balance
Open advances	$ 60,000	$ 212,500
Outstanding advances	$ 112,500	$ 112,500
Weighted Average Rate
Open advances (percent)	5.69%	5.70%
Outstanding advances (percent)	4.53%	4.69%
FHLB of San Francisco
Outstanding Balance
Open advances	$ 60,000	$ 212,500
Advances due within 12 months	50,000	37,500
Advances due over 12 months through 24 months	25,000	12,500
Advances due over 24 months through 36 months	37,500	62,500
Outstanding advances	$ 172,500	$ 325,000
Weighted Average Rate
Open advances (percent)	5.69%	5.70%
Advances due within 12 months (percent)	3.33%	0.40%
Advances due over 12 months through 24 months (percent)	4.44%	1.90%
Advances due over 24 months through 36 months (percent)	4.32%	4.37%
Outstanding advances (percent)	4.53%	4.69%

XML

Borrowings and Subordinated Debentures - Summary of Financial Data Pertaining to Federal Home Loan Bank Advances (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Federal Home Loan Banks [Abstract]
Weighted-average interest rate at end of period	4.53%	4.69%
Weighted-average interest rate during the period	4.10%	3.48%
Average balance of FHLB advances	$ 162,418,000	$ 197,390,000
Maximum amount outstanding at any month-end	$ 187,500,000	$ 450,000,000

XML

Earnings per Share - Reconciliation of Components Used to Derive Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net income	$ 15,164	$ 21,991
Less: income allocated to unvested restricted stock	92	117
Income allocated to common shares	$ 15,072	$ 21,874
Weighted-average shares for basic EPS	30,119,646	30,347,325
Basic EPS	$ 0.5	$ 0.72
Effect of dilutive stock options and unvested performance stock units	0	83,420
Income allocated to common shares	$ 15,072	$ 21,874
Weighted-average shares for diluted EPS	30,119,646	30,430,745
Diluted EPS	$ 0.5	$ 0.72

XML

Earnings per Share - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based compensation expense	$ 775	$ 652
Performance Stock Units (PSU) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of diluted earnings per share	91,732	0
Performance Stock Units (PSU) [Member] | 2021 Equity Compensation Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total fair value of the PSUs		$ 1,100
Share-based compensation arrangement by share-based payment award, additional shares issued	0	52,450
Stock options, expiration term from date of grant	3 years
Share-based compensation arrangement by share based payment award, performance stock units outstanding	91,732	157,049
Share-based compensation arrangement by share based payment award, performance stock units aggregate grant fair value	$ 2,100	$ 3,100
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities excluded from calculation of diluted earnings per share	61,000	31,034

XML

Regulatory Matters - Additional Information (Detail)	Mar. 31, 2024	Dec. 31, 2023	Jan. 01, 2019
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Minimum ratio of qualifying total capital to risk-weighted assets	0.080
Minimum ratio of Tier 1 capital to risk-weighted assets	0.060
Leverage ratio	0.040
Minimum ratio of qualifying total capital to risk-weighted assets for well capitalized	0.100
Minimum ratio of Tier 1 capital to average assets for well capitalized	0.080
Capital conservation buffer (percent)	6.40%	6.20%	2.50%
Hanmi Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Minimum ratio of qualifying total capital to risk-weighted assets	0.08	0.08
Minimum ratio of Tier 1 capital to risk-weighted assets	0.06	0.06
Leverage ratio	0.04	0.04
Minimum ratio of qualifying total capital to risk-weighted assets for well capitalized	0.10	0.10
Minimum ratio of Tier 1 capital to average assets for well capitalized	0.08	0.08
Capital conservation buffer (percent)	6.50%	6.27%
Depository Institutions
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage ratio	0.050

XML

Regulatory Matters - Capital Ratios of Hanmi Financial and Bank (Detail) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	0.080
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	0.060
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets	0.040
Minimum to Be Categorized as Well Capitalized Ratio, Total capital to risk-weighted assets	0.100
Minimum to Be Categorized as Well Capitalized Ratio, Tier 1 capital to risk-weighted assets	0.080
Hanmi Financial
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Actual Capital, Total capital to risk-weighted assets	$ 958,173	$ 947,286
Actual Capital, Tier 1 capital to risk-weighted assets	781,521	773,179
Actual Capital, Common equity Tier 1 capital to risk-weighted assets	759,752	751,516
Actual Capital, Tier 1 capital to average assets	$ 781,521	$ 773,179
Actual Capital Ratio, Total capital to risk-weighted assets	0.152	0.1495
Actual Capital Ratio, Tier 1 capital to risk-weighted assets	0.124	0.122
Actual Capital Ratio, Common equity Tier 1 capital to risk-weighted assets	0.1205	0.1186
Actual Capital Ratio, Tier 1 capital to average assets	0.1036	0.1037
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets	$ 504,319	$ 506,891
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets	378,239	380,168
Minimum Regulatory Requirement Capital, Common equity Tier 1 capital to risk-weighted assets	283,680	285,126
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets	$ 301,758	$ 298,277
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	0.08	0.08
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	0.06	0.06
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	0.04	0.04
Hanmi Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Actual Capital, Total capital to risk-weighted assets	$ 914,061	$ 904,153
Actual Capital, Tier 1 capital to risk-weighted assets	847,409	840,046
Actual Capital, Common equity Tier 1 capital to risk-weighted assets	847,409	840,046
Actual Capital, Tier 1 capital to average assets	$ 847,409	$ 840,046
Actual Capital Ratio, Total capital to risk-weighted assets	0.145	0.1427
Actual Capital Ratio, Tier 1 capital to risk-weighted assets	0.1344	0.1326
Actual Capital Ratio, Common equity Tier 1 capital to risk-weighted assets	0.1344	0.1326
Actual Capital Ratio, Tier 1 capital to average assets	0.1129	0.1132
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets	$ 504,340	$ 506,741
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets	378,255	380,056
Minimum Regulatory Requirement Capital, Common equity Tier 1 capital to risk-weighted assets	283,691	285,042
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets	$ 300,334	$ 296,948
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	0.08	0.08
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	0.06	0.06
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	0.04	0.04
Minimum to Be Categorized as Well Capitalized Capital, Total capital to risk-weighted assets	$ 630,425	$ 633,426
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to risk-weighted assets	504,340	506,741
Minimum to Be Categorized as Well Capitalized Capital, Common equity Tier 1 capital to risk-weighted average	409,776	411,727
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to average assets	$ 375,417	$ 371,185
Minimum to Be Categorized as Well Capitalized Ratio, Total capital to risk-weighted assets	0.10	0.10
Minimum to Be Categorized as Well Capitalized Ratio, Tier 1 capital to risk-weighted assets	0.08	0.08
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	0.05	0.05

XML

Fair Value Measurements - Additional Information (Detail)	Mar. 31, 2024 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
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	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 872,190	$ 865,739
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets	Prepaid Expense and Other Assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities and Other Liabilities	Accrued Liabilities and Other Liabilities
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 87,304	$ 85,488
Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	121,735	97,411
Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	124,816	124,625
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	718,444	712,355
Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	66,442	67,896
Quoted Prices in Active Markets for Identical Assets | Derivative financial instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments, Liabilities		5,920
Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	872,190	865,739
Recurring Basis | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	87,304	85,488
Recurring Basis | Derivative financial instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments, Assets	6,459	6,245
Derivative financial instruments, Liabilities	8,318
Recurring Basis | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	121,735	97,411
Recurring Basis | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	124,816	124,625
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	718,444	712,355
Recurring Basis | Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	66,442	67,896
Recurring Basis | Mortgage-backed securities - commercial | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	47,220	47,991
Recurring Basis | Mortgage-backed securities - residential | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	424,673	442,328
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	87,304	85,488
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	87,304	85,488
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Derivative financial instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments, Assets	0	0
Derivative financial instruments, Liabilities	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 | Quoted Prices in Active Markets for Identical Assets | Mortgage-backed securities - commercial | 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 | Mortgage-backed securities - residential | 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 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	784,886	780,251
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 | Derivative financial instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments, Assets	6,459	6,245
Derivative financial instruments, Liabilities	8,318	5,920
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	121,735	97,411
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	124,816	124,625
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	718,444	712,355
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	66,442	67,896
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Mortgage-backed securities - commercial | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	47,220	47,991
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Mortgage-backed securities - residential | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	424,673	442,328
Recurring Basis | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	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 | Derivative financial instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments, Assets	0	0
Derivative financial instruments, Liabilities	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
Recurring Basis | Significant Unobservable Inputs | Mortgage-backed securities - commercial | 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 | Mortgage-backed securities - residential | Mortgage-backed securities
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) - USD ($) $ in Thousands	Mar. 31, 2024		Dec. 31, 2023		Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets	$ 6,890		$ 7,070		$ 7,541	$ 7,176
Non-recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	4,410	[1]	7,352	[2]
Other real estate owned	117		117
Repossessed personal property	1,288		1,305
Non-recurring Basis | 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
Non-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]
Collateral dependent loans	0	[1]	0	[2]
Other real estate owned	0		0
Repossessed personal property	0		0
Non-recurring Basis | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	4,410	[1]	7,352	[2]
Other real estate owned	117		117
Repossessed personal property	$ 1,288		$ 1,305

[1] Consisted of real estate loans of $2.2 million and commercial and industrial loans of $5.2 million.

[2] Consisted of real estate loans of $2.4 million and commercial and industrial loans of $2.0 million.

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable	$ 6,109,570	$ 6,112,972
Non-recurring Basis | Real estate loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable	2,400	2,200
Non-recurring Basis | Commercial and Industrial Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable	$ 2,000	$ 5,200

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	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 4,410	$ 7,352
Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	2,446	2,174
Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 1,964	$ 5,178
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Minimum | Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		(0.020)
Maximum | Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		0.055
Weighted Average | Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		(0.002)
Retail | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		$ 1,530
Alternative Investment, Valuation Technique [Extensible List]		us-gaap:MarketApproachValuationTechniqueMember
Retail | Minimum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		0.005
Retail | Maximum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		0.020
Retail | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		0.015
Hospitality | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 299	$ 338
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Hospitality | Minimum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.030)	(0.030)
Hospitality | Maximum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.035	0.035
Hospitality | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.003)	(0.001)
Other | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 2,147	$ 305
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	(0.025)	(0.006)
Other | Maximum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.025	0.001
Other | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.008	(0.002)
Residential | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		$ 1
Alternative Investment, Valuation Technique [Extensible List]		us-gaap:MarketApproachValuationTechniqueMember
Residential | Minimum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		(0.015)
Residential | Maximum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		0.003
Residential | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		(0.006)
Repossessed Personal Property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 1,288	$ 1,305
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	$ 117	$ 117
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	(0.010)
Other Real Estate Owned | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.005	0.005
Other Real Estate Owned | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.004	(0.002)

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Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financial assets:
Cash and due from banks	$ 256,038	$ 302,324
Securities available for sale	872,190	865,739
Loans held for sale	3,999	12,013
Loans receivable, net of allowance for credit losses	6,109,570	6,112,972
Accrued interest receivable	23,032	23,371
Financial liabilities:
Noninterest-bearing deposits	1,933,060	2,003,596
Interest-bearing deposits	4,443,000	4,276,978
Borrowings and subordinated debentures	302,665	455,012
Accrued interest payable	38,007	39,306
Quoted Prices in Active Markets for Identical Assets | Fair Value
Financial assets:
Cash and due from banks	256,038	302,324
Securities available for sale	87,304	85,488
Loans held for sale	0	0
Loans receivable, net of allowance for credit losses		0
Accrued interest receivable	23,032	23,371
Financial liabilities:
Noninterest-bearing deposits		0
Interest-bearing deposits		0
Borrowings and subordinated debentures		0
Accrued interest payable	38,007	39,306
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	784,886	780,251
Loans held for sale	4,109	12,238
Loans receivable, net of allowance for credit losses	0	0
Accrued interest receivable	0	0
Financial liabilities:
Noninterest-bearing deposits	1,933,060	2,003,596
Interest-bearing deposits	0	0
Borrowings and subordinated debentures	171,201	323,491
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	6,011,407	6,007,975
Accrued interest receivable	0	0
Financial liabilities:
Noninterest-bearing deposits	0	0
Interest-bearing deposits	4,437,547	4,271,711
Borrowings and subordinated debentures	131,361	128,229
Accrued interest payable	$ 0	$ 0

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Off-Balance Sheet Commitments - Distribution of Total Loan Commitments (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
Total commitments	$ 912,470	$ 930,825
Unused Commitments to Extend Credit
Loss Contingencies [Line Items]
Total commitments	792,769	813,960
Standby letters of credit
Loss Contingencies [Line Items]
Total commitments	83,772	83,725
Commercial letters of credit
Loss Contingencies [Line Items]
Total commitments	$ 35,929	$ 33,140

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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
	Mar. 31, 2024	Mar. 31, 2023
Risks and Uncertainties [Abstract]
Balance at beginning of period	$ 2,474	$ 3,114
Credit loss recovery	(177)	(48)
Balance at end of period	$ 2,297	$ 3,066

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Off-Balance Sheet Commitments - Additional Information (Detail) $ in Millions	Mar. 31, 2024 USD ($)
Loss Contingency [Abstract]
Letters of credit to FHLBSF	$ 120.0
Deposits from State of California	$ 120.0

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Leases - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Lessee, Lease, Description [Line Items]
Right-of-use assets	$ 40,000		$ 42,400
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid expenses and other assets		Prepaid expenses and other assets
Total lease liabilities - Operating leases	$ 43,986		$ 46,400
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent		us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
Weighted average remaining lease term	6 years 8 months 19 days		6 years 9 months 25 days
Weighted average discount rate (percent)	2.99%		2.98%
Net lease expense	$ 2,200	$ 2,000
Operating lease costs	2,200	2,100
Cash paid for amounts included in the measurement of Company's operating lease liabilities	$ 2,200	$ 2,100

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Leases - Future Minimum Rental Commitments Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
2024	$ 8,439
2025	7,550
2026	6,669
2027	6,593
2028	5,833
Thereafter	13,618
Remaining lease commitments	48,702
Interest	(4,716)
Present value of lease liability	$ 43,986	$ 46,400

XML

Liquidity - Additional Information (Detail) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Amount available from borrowing source	$ 22,300,000	$ 23,200,000
Borrowings	0	0
Line of credit	115,000,000.0	115,000,000.0
State of California time deposits	2,495,761,000	2,454,867,000
Hanmi Bank
Line of Credit Facility [Line Items]
Cash on deposit with bank subsidiary	6,700,000	7,500,000
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	172,500,000	325,000,000
Broker deposits	$ 43,300,000	58,300,000
Percentage of borrowings from FHLB (up to)	30.00%
Total borrowing capacity based on pledged collateral	$ 1,630,000,000	1,540,000,000
Borrowing capacity available based on pledged collateral	1,330,000,000	1,090,000,000.00
Amount available from borrowing source	22,300,000
Carrying value for loans pledged by Bank	28,100,000
Borrowings	0
Maximum borrowing capacity of line of credit	100,000,000.0
State of California time deposits	120,000,000	120,000,000
U.S. Treasury securities | Hanmi Bank
Line of Credit Facility [Line Items]
Debt securities fair value	$ 34,300,000	$ 32,400,000

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Derivatives and Hedging Activities - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Derivative [Line Items]
Derivative liability, including accrued interest	$ 0		$ 0
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging
Derivative [Line Items]
Notional Amount	75,000,000		$ 100,000,000
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | Prime-indexed loans
Derivative [Line Items]
Principal balance	152,900,000
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | SOFR
Derivative [Line Items]
Principal balance	$ 103,500,000
Variable interest rate basis	one-month SOFR
Other Income
Derivative [Line Items]
Fee income	$ 0	$ 600,000
Interest Income | Cash Flow Hedging
Derivative [Line Items]
Decrease to interest income	$ (1,700,000)

XML

Derivatives and Hedging Activities - Schedule of Fair Value of Derivative Financial Instruments as well as their Classification on Balance Sheet (Detail) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Derivatives Fair Value [Line Items]
Total derivative assets	$ 6,459,000	$ 6,245,000
Not Designated as Hedging Instrument
Derivatives Fair Value [Line Items]
Total derivative assets	6,459,000	5,939,000
Total derivative liabilities	6,417,000	5,920,000
Not Designated as Hedging Instrument | Interest Rate Products
Derivatives Fair Value [Line Items]
Notional Amount	103,918,000	104,571,000
Total derivative assets	6,459,000	5,939,000
Total derivative liabilities	6,417,000	5,920,000
Designated as Hedging Instrument
Derivatives Fair Value [Line Items]
Total derivative assets		306,000
Total derivative liabilities	1,901,000
Designated as Hedging Instrument | Interest Rate Products
Derivatives Fair Value [Line Items]
Notional Amount	175,000,000	100,000,000
Total derivative assets		$ 306,000
Total derivative liabilities	$ 1,901,000

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Derivatives and Hedging Activities - Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income and the Consolidated Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivative	$ (2,207)	$ 306
Amount of Gain or (Loss) Recognized in OCI Included Component	(2,207)	306
Interest Rate Products
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivative	(2,207)	306
Amount of Gain or (Loss) Recognized in OCI Included Component	$ (2,207)	$ 306

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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
	Mar. 31, 2024	Mar. 31, 2023
Derivative Instruments Gain Loss [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 23	$ (128)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	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	$ 23	$ (128)

XML

Derivatives and Hedging Activities - Summary of Gross Presentation, Effects of Offsetting and a Net Presentation of Derivatives (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Derivatives Fair Value [Line Items]
Gross Amounts of Recognized Assets, Offsetting of Derivative Assets	$ 6,459	$ 6,245
Net Amounts of Assets presented in the Consolidated Balance Sheets, Offsetting of Derivative Assets	6,459	6,245
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets, Net Amount		230
Gross Amounts of Recognized Liabilities, Offsetting of Derivative Liabilities	8,318	5,920
Net Amounts of Liabilities presented in the Consolidated Balance Sheets, Offsetting of Derivative Liabilities	8,318	5,920
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Liabilities, Net Amount	6,417	5,636
Derivative Liabilities, Financial Instruments
Derivatives Fair Value [Line Items]
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Liabilities, Net Amount	1,901	284
Derivative Assets, Financial Instruments
Derivatives Fair Value [Line Items]
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets, Net Amount	1,901	284
Derivative Assets, Cash Collateral Received
Derivatives Fair Value [Line Items]
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets, Net Amount	$ 4,558	$ 5,731

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Subsequent Events - Additional Information (Details) - Subsequent Events shares in Millions	Apr. 25, 2024 $ / shares shares
Subsequent Event [Line Items]
Dividend declared date	Apr. 25, 2024
Cash dividend per share | $ / shares	$ 0.25
Dividend payable date	May 22, 2024
Dividend payable record date	May 06, 2024
New Stock Repurchase Program
Subsequent Event [Line Items]
Additional shares of common stock to be repurchased | shares	1.5
Number of shares authorized for repurchase (percent)	5.00%