10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the Quarterly Period Ended September 30, 2014

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 Incorporation or Organization)	(I.R.S. Employer Identification No.)
3660 Wilshire Boulevard, Penthouse Suite A Los Angeles, California	90010
(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)

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  x    No  ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted 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 and post such files).    Yes  x    No  ¨

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

Large Accelerated Filer	¨	Accelerated Filer	x
Non-Accelerated Filer	¨  (Do Not Check if a Smaller Reporting Company)	Smaller Reporting Company	¨

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

As of October 31, 2014, there were 31,904,031 outstanding shares of the Registrant’s Common Stock.

Hanmi Financial Corporation and Subsidiaries

Quarterly Report on Form 10-Q

Three and Nine Months Ended September 30, 2014

Table of Contents

Part 1 – Financial Information
Item 1.	Financial Statements	3
	Consolidated Balance Sheets (Unaudited)	3
	Consolidated Statements of Income (Unaudited)	4
	Consolidated Statements of Comprehensive Income (Unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)	6
	Consolidated Statements of Cash Flows (Unaudited)	7
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	46
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	69
Item 4.	Controls and Procedures	69
Part II – Other Information
Item 1.	Legal Proceedings	70
Item 1A.	Risk Factors	70
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70
Item 3.	Defaults Upon Senior Securities	70
Item 4.	Mine Safety Disclosures	70
Item 5.	Other Information	70
Item 6.	Exhibits	70
Signatures		72

2

Part I — Financial Information

Item 1. Financial Statements

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets (Unaudited)

(In thousands, except share data)

	September 30, 2014			December 31, 2013
Assets
Cash and cash equivalents	$	197,016		$	179,357
Securities available for sale, at fair value (amortized cost of $1,139,173 as of September 30, 2014 and $549,113 as of December 31, 2013)		1,128,624			530,926
Loans held for sale, at the lower of cost or fair value		7,757			—
Loans receivable, net of allowance for loan losses of $51,179 as of September 30, 2014 and $57,555 as of December 31, 2013		2,628,091			2,177,498
Accrued interest receivable		9,880			7,055
Premises and equipment, net		31,187			14,221
Other real estate owned, net		24,781			756
Customers’ liability on acceptances		2,428			2,018
Servicing assets		7,844			6,833
FDIC loss sharing asset		7,696			—
Other intangible assets, net		2,179			1,171
Investment in federal home loan bank stock, at cost		17,579			14,060
Investment in federal reserve bank stock, at cost		12,273			11,196
Income tax assets		72,330			63,841
Bank-owned life insurance		48,670			29,699
Prepaid expenses		2,753			1,415
Other assets		27,244			14,333
Total assets	$	4,228,332		$	3,054,379
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	1,029,343		$	819,015
Interest-bearing		2,568,811			1,693,310
Total deposits		3,598,154			2,512,325
Accrued interest payable		3,030			3,366
Bank’s liability on acceptances		2,428			2,018
Federal home loan bank advances		110,000			127,546
Rescinded stock obligation		15,720			—
Subordinated debentures		18,509			—
Accrued expenses and other liabilities		45,297			9,047
Total liabilities		3,793,138			2,654,302
Stockholders’ equity:
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 32,472,323 shares (31,894,429 shares outstanding) as of September 30, 2014 and 32,339,444 shares (31,761,550 shares outstanding) as of December 31, 2013		257			257
Additional paid-in capital		554,446			552,270
Accumulated other comprehensive loss, net of tax benefit of $5,469 as of September 30, 2014 and $8,791 as of December 31, 2013		(5,065	)		(9,380	)
Accumulated deficit		(44,586	)		(73,212	)
Less: treasury stock, at cost; 577,894 shares as of September 30, 2014 and December 31, 2013		(69,858	)		(69,858	)
Total stockholders’ equity		435,194			400,077
Total liabilities and stockholders’ equity	$	4,228,332		$	3,054,379

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 September 30,					Nine Months Ended September 30,
	2014		2013			2014			2013
Interest and Dividend Income:
Interest and fees on loans	$	30,499	$	29,098		$	87,044		$	83,736
Taxable interest on investment securities		3,138		2,040			8,050			6,256
Tax-exempt interest on investment securities		20		69			116			237
Interest on federal funds sold		—		—			—			6
Interest on interest-bearing deposits in other banks		29		28			67			140
Dividends on federal reserve bank stock		173		198			513			577
Dividends on federal home loan bank stock		290		194			762			449
Total interest and dividend income		34,149		31,627			96,552			91,401
Interest Expense:
Interest on deposits		3,278		3,117			9,653			9,376
Interest on federal home loan bank advances		37		36			116			115
Interest on subordinated debentures		73		—			73			678
Interest on rescinded stock obligation		87		—			87			—
Total interest expense		3,475		3,153			9,929			10,169
Net interest income before provision for credit losses		30,674		28,474			86,623			81,232
Negative provision for credit losses		—		—			(7,166	)		—
Net interest income after provision for credit losses		30,674		28,474			93,789			81,232
Noninterest Income:
Bargain purchase gain, net of deferred taxes		6,593		—			6,593			—
Service charges on deposit accounts		2,883		2,730			7,924			8,662
Remittance fees		459		481			1,388			1,519
Trade finance fees		314		248			873			801
Other service charges and fees		380		349			1,080			1,082
Bank-owned life insurance income		225		230			672			693
Gain on sales of SBA loans guaranteed portion		1,221		994			2,267			6,064
Net loss on sales of other loans		—		—			—			(557	)
Net gain on sales of investment securities		67		611			1,852			923
Other operating income		2,179		416			2,588			758
Total noninterest income		14,321		6,059			25,237			19,945
Noninterest Expense:
Salaries and employee benefits		12,847		9,101			33,386			26,126
Occupancy and equipment		3,098		2,561			7,964			7,532
Merger and integration costs		3,415		—			3,572			—
Unconsummated acquisition costs		—		307			—			1,331
Deposit insurance premiums and regulatory assessments		513		308			1,349			1,059
Data processing		1,476		1,146			3,746			3,436
Other real estate owned expense		78		(59	)		84			(47	)
Professional fees		1,386		599			2,786			4,095
Directors and officers liability insurance		191		219			574			657
Supplies and communications		628		533			1,725			1,593
Advertising and promotion		809		1,039			2,142			2,419
Loan-related expense		58		91			203			328
Amortization of other intangible assets		33		—			33			—
Other operating expenses		2,231		1,791			6,031			5,369
Total noninterest expense		26,763		17,636			63,595			53,898
Income from continuting operations before provision for income taxes		18,232		16,897			55,431			47,279
Provision for income taxes		4,968		6,582			19,667			17,510
Income from continuting operations, net of taxes	$	13,264	$	10,315		$	35,764		$	29,769
Discontinued operations
Income from operations of discontinued subsidiaries (including gain on disposal of $51 in the second quarter of 2014)	$	—	$	112		$	37		$	242
Income tax expense		—		42			481			81
Income (loss) from discontinued operations		—		70			(444	)		161
Net income	$	13,264	$	10,385		$	35,320		$	29,930
Basic earnings per share:
Income from continuing operations, net of taxes	$	0.42	$	0.33		$	1.13		$	0.94
Income from discontinued operations, net of taxes		—		—			(0.02	)		0.01
Basic earnings per share	$	0.42	$	0.33		$	1.11		$	0.95
Diluted earnings per share:
Income from continuing operations, net of taxes	$	0.41	$	0.33		$	1.12		$	0.94
Income from discontinued operations, net of taxes		—		—			(0.01	)		0.01
Diluted earnings per share	$	0.41	$	0.33		$	1.10		$	0.95
Weighted-average shares outstanding:
Basic		31,708,581		31,621,049			31,683,288			31,583,897
Diluted		32,001,419		31,733,004			31,967,876			31,652,795

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

4

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

(In thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Net Income	$	13,264		$	10,385		$	35,320		$	29,930
Other comprehensive income, net of tax
Unrealized gain (loss) on securities
Unrealized holding (loss) gain arising during period		(4,947	)		(10,020	)		9,491			(16,141	)
Less: reclassification adjustment for net gain included in net income		(67	)		(611	)		(1,852	)		(923	)
Unrealized (loss) gain on interest-only strip of servicing assets		(3	)		—			(2	)		1
Income tax benefit (expense) related to items of other comprehensive income		2,102			4,528			(3,322	)		7,176
Other comprehensive (loss) income		(2,915	)		(6,103	)		4,315			(9,887	)
Comprehensive Income	$	10,349		$	4,282		$	39,635		$	20,043

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

5

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

(In thousands, except share data)

	Common Stock - Number of Shares							Stockholders’ Equity
	Shares Issued		Treasury Shares			Shares Outstanding		Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)			Accumulated Deficit			Treasury Stock, at Cost			Total Stockholders’ Equity
Balance at January 1, 2013		32,074,434		(577,894	)		31,496,540	$	257	$	550,066	$	5,418		$	(107,519	)	$	(69,858	)	$	378,364
Adjustment for the cumulative effect on prior years of retrospectively applying the new method of accounting		—		—			—		—		—		—			(1,112	)		—			(1,112	)
Exercises of stock options		40,678		—			40,678		—		139		—			—			—			139
Exercises of stock warrants		106,315		—			106,315		—		1,289		—			—			—			1,289
Restricted stock awards		110,582		—			110,582		—		—		—			—			—			—
Share-based compensation expense		—		—			—		—		387		—			—			—			387
Comprehensive income:
Net income		—		—			—		—		—		—			19,545			—			19,545
Change in unrealized gain on securities available for sale and interest-only strips, net of income taxes		—		—			—		—		—		(9,887	)		—			—			(9,887	)
Balance at September 30, 2013		32,332,009		(577,894	)		31,754,115	$	257	$	551,881	$	(4,469	)	$	(89,086	)	$	(69,858	)	$	388,725
Balance at January 1, 2014		32,339,444		(577,894	)		31,761,550	$	257	$	552,270	$	(9,380	)	$	(73,212	)	$	(69,858	)	$	400,077
Exercises of stock options		34,382		—			34,382		—		427		—			—			—			427
Exercises of stock warrants		429		—			429		—		2		—			—			—			2
Restricted stock awards		98,068		—			98,068		—		—		—			—			—			—
Share-based compensation expense		—		—			—		—		1,747		—			—			—			1,747
Cash dividends		—		—			—		—		—		—			(6,694	)		—			(6,694	)
Comprehensive income:
Net income		—		—			—		—		—		—			35,320			—			35,320
Change in unrealized loss on securities available for sale and interest-only strips, net of income taxes		—		—			—		—		—		4,315			—			—			4,315
Balance at September 30, 2014		32,472,323		(577,894	)		31,894,429	$	257	$	554,446	$	(5,065	)	$	(44,586	)	$	(69,858	)	$	435,194

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

6

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

	Nine Months Ended September 30,
	2014			2013
Cash flows from operating activities:
Net income	$	35,320		$	29,930
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment		1,418			1,525
Amortization of premiums and accretion of discounts on investment securities, net		2,754			1,961
Amortization of other intangible assets		33			123
Amortization of servicing assets		1,318			1,152
Amortization of investment in affordable housing partnerships		592			552
Amortization of subordinated debentures		36			—
Share-based compensation expense		1,747			387
Negative provision for credit losses		(7,166	)		—
Gain on sales of investment securities		(1,852	)		(923	)
Gain on sales of loans		(2,267	)		(5,507	)
Bargain purchase gain on acquisition		(6,593	)		—
Gain (loss) on sales of other real estate owned		2			(71	)
Loss on sales of subsidiaries		419			—
Valuation adjustment on other real estate owned		—			7
Origination of loans held for sale		(34,798	)		(63,113	)
Proceeds from sales of SBA loans guaranteed portion		29,826			77,338
Change in restricted cash		—			5,350
Change in accrued interest receivable		609			624
Change in FDIC loss sharing asset		1,996			—
Change in bank-owned life insurance		(672	)		(693	)
Change in prepaid expenses		(1,338	)		98
Change in other assets		(4,462	)		767
Change in income tax assets		(3,066	)		5,038
Change in accrued interest payable		(821	)		(9,070	)
Change in stock warrants payable		—			80
Change in other liabilities		11,670			2,422
Net cash provided by operating activities		24,705			47,977
Cash flows from investing activities:
Proceeds from redemption of federal home loan bank and federal reserve bank stock		—			3,740
Proceeds from matured or called securities available for sale		61,145			62,104
Proceeds from sales of securities available for sale		135,834			41,560
Proceeds from sales of other real estate owned		9,932			1,645
Proceeds from sales of loans held for sale		—			5,380
Proceeds from insurance settlement on bank-owned life insurance		—			279
Cash acquired in acquisition, net of cash consideration paid		116,967			—
Net proceeds from sales of subsidiaries		398			—
Change in loans receivable		(157,988	)		(131,169	)
Purchases of securities available for sale		(124,442	)		(53,762	)
Purchases of premises and equipment		(739	)		(567	)
Purchases of federal reserve bank stock		(3,403	)		(978	)
Net cash provided by (used) in investing activities		37,704			(71,768	)
Cash flows from financing activities:
Change in deposits		(13,168	)		33,744
Change in short-term federal home loan bank advances		(25,135	)		—
Redemption of Federal Home Loan Bank advances		(2,411	)		(290	)
Redemption of subordinated debentures		—			(82,406	)
Proceeds from exercise of stock options		427			460
Proceeds from exercise of stock warrants		—			305
Cash dividends paid		(4,463	)		(2,215	)
Net cash used in financing activities		(44,750	)		(50,402	)
Net increase (decrease) in cash and cash equivalents		17,659			(74,193	)
Cash and cash equivalents at beginning of year		179,357			268,047
Cash and cash equivalents at end of period	$	197,016		$	193,854
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	10,750		$	19,239
Income taxes	$	20,930		$	11,910
Non-cash activities:
Transfer of loans receivable to other real estate owned	$	7,501		$	1,090
Transfer of loans receivable to loans held for sale	$	—		$	8,010
Transfer of loans held for sale to loans receivable	$	—		$	2,534
Note receivable from sale of insurance subsidiaries	$	1,394		$	—
Conversion of stock warrants into common stock	$	2		$	981
Income tax (expense) benefit related to items of other comprehensive income	$	(3,322	)	$	7,176
Change in unrealized (gain) loss in accumulated other comprehensive income	$	(9,489	)	$	16,140
Cash dividend declared	$	(2,231	)	$	—

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

7

Hanmi Financial Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three and Nine Months Ended September 30, 2014 and 2013

Note 1 — Basis of Presentation

Hanmi Financial Corporation (“Hanmi Financial,” the “Company,” “we” or “us”) is a Delaware corporation and is subject to the Bank Holding Company Act of 1956, as amended. Hanmi Bank (the “Bank”), a California state chartered bank, is a wholly owned subsidiary of Hanmi Financial. During the second quarter of 2014, we disposed of two subsidiaries, Chun-Ha Insurance Services, Inc., a California corporation (“Chun-Ha”), and All World Insurance Services, Inc., a California corporation (“All World”). See “Note 4 — Sale of Insurance Subsidiaries and Discontinued Operations.” On August 31, 2014, Hanmi Financial completed its acquisition of Central Bancorp, Inc. See “Note 2 — Acquisition.”

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 September 30, 2014, but are not necessarily indicative of the results that will be reported for the entire year or any other interim period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. The aforementioned unaudited consolidated financial statements are in conformity with GAAP. Such interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. The interim information should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the “2013 Annual Report on Form 10-K”).

The preparation of interim 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. Actual results could differ from those estimates. Material estimates subject to change include, among other items, the fair value estimates of assets acquired and liabilities assumed in Central Bancorp, Inc. (“CBI”) acquisition as discussed in “Note 2 – Acquisition.” The acquired assets and assumed liabilities of Central Bancorp, Inc. were measured at their estimated fair values. The Company made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and assumed liabilities.

Descriptions of our significant accounting policies are included in “Note 1 — Summary of Significant Accounting Policies” in our 2013 Annual Report on Form 10-K. During the three months ended June 30, 2014, we adopted an accounting policy related to accounting for investments in low-income housing tax credit according to Financial Accounting Standards Board (“FASB”) ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects. See “Note 3 — Accounting for Investments in Qualified Affordable Housing Projects.” During the three months ended September 30, 2014, we completed acquisition of CBI and our acquisition was accounted for using the acquisition method of accounting. See “Note 2 —Acquisition” for more information about the CBI acquisition and “Note 6 — Loans” for accounting policies regarding purchased loans.

Note 2 — Acquisition

Acquisition of Central Bancorp, Inc.

On August 31, 2014, Hanmi Financial completed its acquisition of CBI, the parent company of United Central Bank (“UCB”). In the merger with CBI, each share of CBI common stock was exchanged for $17.64 per share or $50 million in the aggregate. In addition, Hanmi Financial paid $28.7 million to redeem CBI preferred stock and cumulative unpaid dividends and $1.6 million for accrued interest payable on CBI subordinated debentures immediately prior to the consummation of the merger. The merger consideration was funded from consolidated cash of Hanmi Financial. At August 31, 2014, CBI had total assets, liabilities and equity of $1.26 billion, $1.17 billion and $86.8 million, respectively. Total loans and deposits were $294.0 million and $1.1 billion, respectively, at August 31, 2014.

CBI was headquartered in Garland, Texas and through UCB, operated 23 branch locations within Texas, Illinois, Virginia, New York, New Jersey and California. The combined companies operate as Hanmi Financial Corporation and Hanmi Bank, respectively, with banking operations under the Hanmi Bank brand. Following the acquisition, Hanmi Bank has expanded its geographic presence through a network of 49 branches located throughout the United States. Key strategic benefits of the merger include 1) access to highly attractive markets with large Asian-American communities, creating business opportunities by leveraging Hanmi Bank’s brand and business strategies, 2) ability to realize significant cost savings and operational efficiencies for the combined company, and 3) opportunity to prudently deploy capital at an attractive return for our shareholders.

8

In connection with the acquisition, the consideration paid, the provisional estimate of the fair value of the assets acquired and the liabilities assumed as of August 31, 2014 are summarized in the following table:

	(In thousands)
Consideration paid:
CBI Stockholders	$	50,000
Redemption of preferred stock and cumulative unpaid dividends		28,675
Accrued interest on subordinated debentures		1,566
		80,241
Assets acquired:
Cash and cash equivalents		197,209
Securities available for sale		663,497
Loans		294,032
Premises and equipment		17,735
Other real estate owned		28,027
Income tax assets, net		8,800
Core deposit intangible		2,213
FDIC loss sharing assets		9,692
Bank-owned life insurance		18,296
Other assets		16,428
Total assets acquired		1,255,929
Liabilities assumed:
Deposits		1,098,997
Subordinated debentures		18,473
Rescinded stock obligation		15,720
FHLB advances		10,000
Other liabilities		25,905
Total liabilities assumed		1,169,095
Total identifiable net assets	$	86,834
Bargain purchase gain, net of deferred taxes	$	6,593

The CBI acquisition was accounted for under the acquisition method of accounting pursuant to ASC 805, Business Combinations. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of acquisition date. The Company made significant estimates and exercised significant judgment in estimating the fair values and accounting for such acquired assets and assumed liabilities. Such fair values are preliminary estimates and are subject to adjustment for up to one year after the acquisition date or when additional information relative to the closing date fair values becomes available and such information is considered final, whichever is earlier. The fair values are based on provisional valuation estimates of the fair values of the acquired assets and assumed liabilities. The valuation of acquired loans, income taxes and the core deposit intangibles are based on a preliminary estimate and are subject to change as the provisional amounts are finalized. The provisional application of the acquisition method of accounting resulted in a bargain purchase gain of $6.6 million. The operations of CBI are included in our operating results since the acquisition date for the third quarter of 2014. Acquisition-related costs of $3.6 million for the nine months ended September 30, 2014 are expensed as incurred as merger and integration costs. These expenses are comprised primarily of system conversion costs and professional fees.

The $294.0 million estimated fair value of loans acquired from CBI was determined by utilizing a discounted cash flow methodology considering credit and interest rate risk. Cash flows were determined by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value based on a current market rate for similar loans. There was no carryover of CBI’s allowance for loan losses associated with the loans acquired as loans were initially recorded at fair value.

The following table summarizes the accretable yield on the purchased credit impaired loans acquired from the CBI merger at August 31, 2014.

	(In thousands)
Undiscounted contractual cash flows	$	117,301
Nonaccretable discount		(18,565	)
Undiscounted cash flow to be collected		98,736
Estimated fair value of PCI loans		75,878
Accretable yield	$	22,858

9

The core deposit intangible (“CDI”) of $2.2 million was recognized for the core deposits acquired from CBI. The CDI is amortized over its useful life of approximately ten years on an accelerated basis and reviewed for impairment at least quarterly. The amortization expense for the third quarter of 2014 was $33,000.

The fair value of savings and transactional deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. Expected cash flows were utilized for fair value calculation of the certificates of deposit based on the contractual terms of the certificates of deposit and the cash flows were discounted based on a current market rate for certificates of deposit with corresponding maturities. The premium for certificates of deposit was $11.3 million with $591,000 amortized in the third quarter of 2014.

The fair value of subordinated debentures was determined by estimating projected future cash flows and discounting them at a market rate of interest. A discount of $8.3 million was recognized for subordinated debentures, which will be amortized over their contractual term. The amortization for the third quarter of 2014 was $35,000.

Unaudited Pro Forma Results of Operations

The following table presents our unaudited pro forma results of operations for the periods presented as if the CBI acquisition had been completed on January 1, 2013. The unaudited pro forma results of operations include the historical accounts of Hanmi Financial and CBI and pro forma adjustments as may be required, including the amortization of intangibles with definite lives and the amortization or accretion of any premiums or discounts arising from fair value adjustments for assets acquired and liabilities assumed. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of our future operating results or operating results that would have occurred had the CBI acquisition been completed at the beginning of 2013. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(In thousands, except per share data)
Pro forma revenues (net interest income plus noninterest income)	$	62,427	$	55,727	$	170,923	$	182,135
Pro forma net income from continuing operations	$	18,359	$	12,826	$	43,546	$	47,201
Pro forma earnings per share from continuing operations:
Basic	$	0.58	$	0.41	$	1.37	$	1.49
Diluted	$	0.57	$	0.40	$	1.36	$	1.49

Note 3 — Accounting for Investments in Qualified Affordable Housing Projects

The Bank invests in qualified affordable housing projects (low income housing) and previously accounted for them under the equity method of accounting. The Bank recognized its share of partnership losses in other operating expenses with the tax benefits recognized in the income tax provision. In January 2014, the FASB issued ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, which amends ASC 323 to provide the ability to elect the proportional amortization method with the amortization expense and tax benefits recognized through the income tax provision. This ASU is effective for the annual period beginning after December 15, 2014, with early adoption being permitted. The Bank elected to early adopt the provisions of the ASU in the second quarter of 2014 and elected the proportional amortization method as retrospective transition. This accounting change in the amortization methodology resulted in changes to account for amortization recognized in prior periods, which impacted the balance of tax credit investments and related tax accounts. The investment amortization expense is presented as a component of the income tax provision.

The cumulative effect of the retrospective application of this accounting principle as of January 1, 2012 was a negative $1.1 million. Net income in the three and nine months ended September 30, 2013 increased by $135,000 and $51,000, respectively, due to the change in accounting principle.

10

The following tables present the effect of the retrospective application of this change in accounting principle on the Company’s Consolidated Balance Sheets, Statements of Income and Statement of Cash Flows for the respective periods:

Hanmi Financial Corporations and Subsidiaries

Consolidated Balance Sheet (Unaudited)

	As of December 31, 2013
	As Previously Reported		Effect of Change in Accounting Principle			As Adjusted
	(In thousands)
Assets
Cash and cash equivalents	$	179,357	$	—		$	179,357
Securities available for sale		530,926		—			530,926
Loans receivable		2,177,498		—			2,177,498
Income tax assets		63,536		305			63,841
Other assets		104,222		(1,465	)		102,757
Total assets	$	3,055,539	$	(1,160	)	$	3,054,379
Liabilities and stockholders’ equity
Liabilities	$	2,654,302	$	—		$	2,654,302
Stockholders’ equity		401,237		(1,160	)		400,077
Total liabilities and stockholders’ equity	$	3,055,539	$	(1,160	)	$	3,054,379

11

Hanmi Financial Corporations and Subsidiaries

Consolidated Statements of Income (Unaudited)

	For the Three Months Ended September 30, 2013
	As Previously Reported		Effect of Change in Accounting Principle			As Adjusted
	(In thousands, except per share data)
Interest and dividend income	$	31,627	$	—		$	31,627
Interest expense		3,153		—			3,153
Net interest income	$	28,474	$	—		$	28,474
Noninterest income		6,059		—			6,059
Noninterest expense		17,811		(175	)		17,636
Income before provision for income taxes	$	16,722	$	175		$	16,897
Provision for income taxes		6,542		40			6,582
Income from continuing operations	$	10,180	$	135		$	10,315
Earnings per share from continuing operations
Basic	$	0.32	$	0.01		$	0.33
Diluted	$	0.32	$	0.01		$	0.33

	For the Nine Months Ended September 30, 2013
	As Previously Reported		Effect of Change in Accounting Principle			As Adjusted
	(In thousands, except per share data)
Interest and dividend income	$	91,401	$	—		$	91,401
Interest expense		10,169		—			10,169
Net interest income	$	81,232	$	—		$	81,232
Noninterest income		19,945		—			19,945
Noninterest expense		54,451		(553	)		53,898
Income before provision for income taxes	$	46,726	$	553		$	47,279
Provision for income taxes		17,008		502			17,510
Income from continuing operations	$	29,718	$	51		$	29,769
Earnings per share from continuing operations
Basic	$	0.94	$	—		$	0.94
Diluted	$	0.94	$	—		$	0.94

Hanmi Financial Corporations and Subsidiaries

Consolidated Statement of Cash Flows (Unaudited)

	For the Nine Months Ended September 30, 2013
	As Previously Reported			Effect of Change in Accounting Principle			As Adjusted
	(In thousands)
Cash flows from operating activities:
Net income	$	29,879		$	51		$	29,930
Total adjustment in net income		18,098			(51	)		18,047
Net cash provided by operating activities	$	47,977		$	—		$	47,977
Cash flows from investing activities:
Net cash used in investing activities		(71,768	)		—			(71,768	)
Cash flows from financing activities:
Net cash used in financing activities		(50,402	)		—			(50,402	)
Net decrease in cash and cash equivalents	$	(74,193	)	$	—		$	(74,193	)
Cash and cash equivalents at beginning of period		268,047			—			268,047
Cash and cash equivalents at end of period	$	193,854		$	—		$	193,854

12

The Bank determined that there were no events or changes in circumstances indicating that it is more likely than not that the carrying amount of the investment will not be realized. Therefore, no impairment was recognized as of September 30, 2014 or December 31, 2013. The investment in low income housing was $21.8 million and $3.0 million as of September 30, 2014 and December 31, 2013, respectively. The Bank’s unfunded commitments related to low income housing investments was $12.6 million as of September 30, 2014 and there were none as of December 31, 2013. The Bank recognized $592,000 and $1.0 million as a component of income tax expense during the three and nine months ended September 30, 2014, respectively, and tax credits and other benefits received from the tax expenses were $821,000 and $1.4 million during the three and nine months ended September 30, 2014, respectively.

Note 4 — Sale of Insurance Subsidiaries and Discontinued Operations

In June 2014, Hanmi Financial sold its insurance subsidiaries, Chun-Ha and All World, and entered into a stock purchase agreement for their sale. The subsidiaries were classified as held for sale in April 2014 and accounted for as discontinued operations. The operations and cash flows of the businesses have been eliminated and in accordance with the provisions of ASC 205, Presentation of Financial Statements, the results are reported as discontinued operations for all periods presented.

Hanmi Financial completed the sale of its two insurance subsidiaries to Chunha Holding Corporation on June 30, 2014. The total sales price was $3.5 million, of which $2.0 million was paid upon signing. The $2.0 million was reduced by $1.6 million cash and cash equivalents included in net assets of Chun-Ha and All World, resulting in $398,000 net cash proceeds. The remaining $1.5 million will be payable in three equal installments on each anniversary of the closing date through June 30, 2017.

The sale resulted in a $51,000 gain and a $4,000 income tax benefit from operating loss, offset by a $470,000 capital gain tax and a $52,000 operating loss. Consequently, net loss from discontinued operations in the second quarter of 2014 was $467,000, or $0.01 per diluted share. The discontinued operations generated noninterest income, primarily in the line item for insurance commissions, of $2.7 million in the first six months of 2014 and $1.3 million in the first quarter of 2014. They also incurred noninterest expense of $2.7 million in various line items in the first six months of 2014 and $1.4 million in the first quarter of 2014.

Summarized financial information for our discontinued operations related to Chun-Ha and All World are as follows:

	June 30, 2014		December 31, 2013
	(In thousands)
Cash and cash equivalents	$	1,602	$	1,396
Premises and equipment, net		90		79
Other intangible assets, net		1,089		1,171
Other assets		2,855		3,298
Total assets	$	5,636	$	5,944
Income tax payable	$	415	$	1,304
Accrued expenses and other liabilities		1,878		2,171
Total liabilities	$	2,293	$	3,475
Net assets of discontinued operations	$	3,343	$	2,469

	Three Months Ended September 30,		Nine Months Ended September 30,
	2013		2014			2013
			(In thousands)
Noninterest income (loss)	$	112	$	(14	)	$	242
Gain on disposal		—		51			—
Income before taxes	$	112	$	37		$	242
Provision for income taxes		42		481			81
Net income (loss) from discontinued operations	$	70	$	(444	)	$	161

13

Note 5 — Investment Securities

The following is a summary of investment securities available for sale as of September 30, 2014 and December 31, 2013:

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value
	(In thousands)
September 30, 2014
Mortgage-backed securities (1) (2)	$	588,638	$	230	$	4,711	$	584,157
Collateralized mortgage obligations (1)		197,784		146		1,719		196,211
U.S. government agency securities		176,449		—		3,656		172,793
SBA loan pool securities		114,753		64		700		114,117
Municipal bonds-tax exempt		4,335		94		—		4,429
Municipal bonds-taxable		16,666		141		147		16,660
Corporate bonds		17,018		11		89		16,940
U.S. treasury securities		164		—		1		163
Other securities		22,916		—		212		22,704
Equity security		450		—		—		450
Total securities available for sale	$	1,139,173	$	686	$	11,235	$	1,128,624
December 31, 2013
Mortgage-backed securities (1)	$	222,768	$	317	$	6,026	$	217,059
Collateralized mortgage obligations (1)		130,636		274		3,217		127,693
U.S. government agency securities		90,852		—		7,316		83,536
Municipal bonds-tax exempt		13,857		110		30		13,937
Municipal bonds-taxable		33,361		73		1,080		32,354
Corporate bonds		21,013		8		186		20,835
U.S. treasury securities		19,998		—		1		19,997
SBA loan pool securities		13,598		—		969		12,629
Other securities		3,030		—		144		2,886
Total securities available for sale	$	549,113	$	782	$	18,969	$	530,926

⁽¹⁾  Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities

⁽²⁾  A portion of the mortgage-backed securities is comprised of home mortgage-backed securities backed by home equity conversion mortgages

The amortized cost and estimated fair value of investment securities as of September 30, 2014, by contractual maturity, are shown below. Although mortgage-backed securities and collateralized mortgage obligations have contractual maturities through 2064, expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available for Sale
	Amortized Cost		Estimated Fair Value
	(In thousands)
Within one year	$	15,702	$	15,721
Over one year through five years		73,633		73,247
Over five years through ten years		139,745		136,900
Over ten years		100,305		99,234
Mortgage-backed securities		588,638		584,157
Collateralized mortgage obligations		197,784		196,211
Other securities		22,916		22,704
Equity security		450		450
Total	$	1,139,173	$	1,128,624

14

FASB ASC 320, Investments – Debt and Equity Securities, requires us to periodically evaluate our investments for other-than-temporary impairment (“OTTI”). There was no OTTI charge during the nine months ended September 30, 2014.

Gross unrealized losses on investment securities available for sale, the estimated fair value of the related securities and the number of securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows as of September 30, 2014 and December 31, 2013:

	Holding Period
	Less Than 12 Months						12 Months or More						Total
	Gross Unrealized Loss		Estimated Fair Value		Number of Securities		Gross Unrealized Loss		Estimated Fair Value		Number of Securities		Gross Unrealized Loss		Estimated Fair Value		Number of Securities
	(In thousands, except number of securities)
September 30, 2014
Mortgage-backed securities	$	2,947	$	422,318		73	$	1,764	$	60,057		22	$	4,711	$	482,375		95
Collateralized mortgage obligations		914		145,816		30		805		21,188		9		1,719		167,004		39
U.S. government agency securities		537		85,948		22		3,119		71,843		26		3,656		157,791		48
SBA loan pool securities		27		87,088		15		673		12,037		4		700		99,125		19
Municipal bonds-taxable		9		2,238		2		138		5,511		5		147		7,749		7
Corporate bonds		—		—		—		89		7,902		2		89		7,902		2
U.S. treasury securities		1		163		1		—		—		—		1		163		1
Other securities		111		19,775		1		101		2,924		5		212		22,699		6
Total	$	4,546	$	763,346		144	$	6,689	$	181,462		73	$	11,235	$	944,808		217
December 31, 2013
Mortgage-backed securities	$	3,437	$	170,324		51	$	2,589	$	30,947		12	$	6,026	$	201,271		63
Collateralized mortgage obligations		2,353		87,026		27		864		14,657		7		3,217		101,683		34
U.S. government agency securities		3,942		50,932		19		3,374		32,606		12		7,316		83,538		31
Municipal bonds-tax exempt		30		8,562		5		—		—		—		30		8,562		5
Municipal bonds-taxable		787		22,817		16		293		3,813		4		1,080		26,630		20
Corporate bonds		9		5,024		1		177		11,803		3		186		16,827		4
U.S. treasury bills		1		19,996		2		—		—		—		1		19,996		2
SBA loan pool securities		—		—		—		969		12,629		4		969		12,629		4
Other securities		48		1,957		3		96		929		3		144		2,886		6
Total	$	10,607	$	366,638		124	$	8,362	$	107,384		45	$	18,969	$	474,022		169

All individual securities that have been in a continuous unrealized loss position for 12 months or longer as of September 30, 2014 and December 31, 2013 had investment grade ratings upon purchase. The issuers of these securities have not established any cause for default on these securities and the various rating agencies have reaffirmed these securities’ long-term investment grade status as of September 30, 2014 and December 31, 2013. These securities have fluctuated in value since their purchase dates as market interest rates have fluctuated.

FASB ASC 320 requires other-than-temporarily impaired investment securities to be written down when fair value is below amortized cost in circumstances where: (1) an entity has the intent to sell a security; (2) it is more likely than not that an entity will be required to sell the security before recovery of its amortized cost basis; or (3) an entity does not expect to recover the entire amortized cost basis of the security. If an entity intends to sell a security or if it is more likely than not the entity will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If an entity does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in other comprehensive income.

The Company does not intend to sell these securities and it is more likely than not that we will not be required to sell the investments before the recovery of its amortized cost basis. In addition, the unrealized losses on municipal and corporate bonds are not considered other-than-temporarily impaired, as the bonds are rated investment grade and there are no credit quality concerns with the issuers. Interest payments have been made as scheduled, and management believes this will continue in the future and that the bonds will be repaid in full as scheduled. Therefore, in management’s opinion, all securities that have been in a continuous unrealized loss position for the past 12 months or longer as of September 30, 2014 and December 31, 2013 were not other-than-temporarily impaired, and therefore, no impairment charges as of September 30, 2014 and December 31, 2013 were warranted.

15

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

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014			2013
	(In thousands)
Gross realized gains on sales of investment securities	$	67	$	619		$	1,853		$	932
Gross realized losses on sales of investment securities		—		(8	)		(1	)		(9	)
Net realized gains on sales of investment securities	$	67	$	611		$	1,852		$	923
Proceeds from sales of investment securities	$	9,778	$	26,661		$	140,855		$	51,425

For the three months ended September 30, 2014, there was a $67,000 gain in earnings resulting from the sale of investment securities that had previously been recorded as net unrealized gains of $23,000 in comprehensive income. For the three months ended September 30, 2013, there was a $611,000 net gain in earnings resulting from the sale of investment securities that had previously been recorded as net unrealized gains of $899,000 in comprehensive income.

For the nine months ended September 30, 2014, there was a $1.9 million net gain in earnings resulting from the redemption and sale of investment securities that had previously been recorded as net unrealized losses of $498,000 in comprehensive income. For the nine months ended September 30, 2013, there was a $923,000 net gain in earnings resulting from the redemption and sale of investment securities that had previously been recorded as net unrealized gains of $2.4 million in comprehensive income.

Investment securities available for sale with par values of $79.9 million and $47.6 million as of September 30, 2014 and December 31, 2013, respectively, were pledged to secure Federal Home Loan Bank (“FHLB”) advances, public deposits and for other purposes as required or permitted by law.

16

Note 6 — Loans

The loan portfolio includes originated and purchased loans. Originated loans and purchased loans for which there was no evidence of credit deterioration at their acquisition date and it was probable that we would be able to collect all contractually required payments, are referred to collectively as non-purchased credit impaired loans, or “Non-PCI loans.” Purchased loans for which there was, at the acquisition date, evidence of credit deterioration since their origination and it was probable that we would be unable to collect all contractually required payments are referred to as purchased credit impaired loans, or “PCI loans”.

Non-PCI loans are carried at the principal amount outstanding, net of deferred fees and costs, and in the case of acquired loans, net of purchase discounts and premiums. Deferred fees and costs and purchase discounts and premiums on acquired non-impaired loans are recognized as an adjustment to interest income over the contractual life of the loans using the effective interest method or taken into income when the related loans are paid off or sold.

PCI loans are accounted for in accordance with ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.” For PCI loans, at the time of acquisition, we (i) calculate the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (ii) estimate the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The difference between the undiscounted cash flows expected to be collected and the estimated fair value of the acquired loans is the accretable yield. The accretable yield is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable. PCI loans may be placed on nonaccrual status, including use of the cost recovery method or cash basis method of income recognition, if information is not available to reasonably estimate cash flows expected to be collected to compute its yield. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to PCI loans; such amount is subject to change over time based on the performance of such loans. The carrying value of PCI loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income.

As part of the fair value process and the subsequent accounting, the Company aggregates PCI loans into pools having common credit risk characteristics such as type and risk rating. Increases in expected cash flows over those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in the amount and changes in the timing of expected cash flows compared to those previously estimated decrease the accretable yield and usually result in a provision for loan losses and the establishment of an allowance for loan losses. As the accretable yield increases or decreases from changes in cash flow expectations, the offset is a decrease or increase to the nonaccretable difference. The accretable yield is measured at each financial reporting date based on information then currently available and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans.

PCI loans that are contractually past due are still considered to be accruing and performing as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual with interest income recognized on either a cash basis or as a reduction of the principal amount outstanding.

The Board of Directors and management review and approve the Bank’s loan policy and procedures on a regular basis to reflect issues such as regulatory and organizational structure changes, strategic planning revisions, concentrations of credit, loan delinquencies and nonperforming loans, problem loans, and policy adjustments.

Real estate loans are loans secured by liens or interest in real estate, to provide purchase, construction, and refinance on real estate properties. Commercial and industrial loans consist of commercial term loans, commercial lines of credit, and Small Business Administration (“SBA”) loans. Consumer loans consist of auto loans, credit cards, personal loans, and home equity lines of credit. We maintain management loan review and monitoring functions that review and monitor pass graded loans as well as problem loans to prevent further deterioration.

The majority of the Bank’s loan portfolio consists of commercial real estate and commercial and industrial loans. The Bank has been diversifying and monitoring commercial real estate loans based on property types, underwriting standards, and portfolio liquidity and management, and certain specified limits set forth in the Bank’s loan policy. To date, most of the Bank’s lending activity occurred within Southern California. With the acquisition of CBI, our lending activities in other areas of the country will increase.

17

Loans Receivable

Loans receivable consisted of the following as of the dates indicated:

	September 30, 2014								December 31,
	Non-PCI Loans			PCI Loans		Total			2013
	(In thousands)
Real estate loans:
Commercial property (1)
Retail	$	635,861		$	15,940	$	651,801		$	543,619
Hotel/Motel		452,405			14,206		466,611			322,927
Gas station		340,386			18,069		358,455			292,557
Other		805,696			15,715		821,411			731,617
Construction		4,146			—		4,146			—
Residential property		106,044			2,686		108,730			79,078
Total real estate loans		2,344,538			66,616		2,411,154			1,969,798
Commercial and industrial loans:
Commercial term		119,175			350		119,525			124,391
Commercial lines of credit		75,246			—		75,246			71,042
International loans		41,127			—		41,127			36,353
Total commercial and industrial loans		235,548			350		235,898			231,786
Consumer loans		28,849			58		28,907			32,505
Total gross loans		2,608,935			67,024		2,675,959			2,234,089
Allowance for loans losses		(51,179	)		—		(51,179	)		(57,555	)
Deferred loan costs		3,311			—		3,311			964
Loans receivable, net	$	2,561,067		$	67,024	$	2,628,091		$	2,177,498

⁽¹⁾ Includes owner-occupied property loans of $1.10 billion and $957.3 million as of September 30, 2014 and December 31, 2013, respectively.

Accrued interest on loans receivable was $5.8 million and $5.4 million at September 30, 2014 and December 31, 2013, respectively. At September 30, 2014 and December 31, 2013, loans receivable totaling $872.2 million and $568.7 million, respectively, were pledged to secure advances from the FHLB and the Federal Reserve Bank’s (“FRB”) federal discount window.

The following table details the information on the sales and reclassifications of loans receivable to loans held for sale (excluding PCI loans) by portfolio segment for the three months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer		Total Non-PCI
	(In thousands)
September 30, 2014
Balance at beginning of period	$	2,568		$	1,274		$	—	$	3,842
Origination of loans held for sale		15,198			3,031			—		18,229
Sales of loans held for sale		(12,135	)		(2,133	)		—		(14,268	)
Principal payoffs and amortization		(20	)		(26	)		—		(46	)
Balance at end of period	$	5,611		$	2,146		$	—	$	7,757
September 30, 2013
Balance at beginning of period	$	2,137		$	416		$	—	$	2,553
Origination of loans held for sale		15,634			1,501			—		17,135
Reclassification from loans held for sale to loans receivable		(2,118	)		(416	)		—		(2,534	)
Sales of loans held for sale		(10,725	)		(1,181	)		—		(11,906	)
Principal payoffs and amortization		(20	)		—			—		(20	)
Balance at end of period	$	4,908		$	320		$	—	$	5,228

18

For the three months ended September 30, 2014, there was no reclassification of Non-PCI loans receivable as Non-PCI loans held for sale, and Non-PCI loans held for sale of $14.3 million were sold. In addition, there was no reclassification from Non-PCI loans held for sale to Non-PCI loans receivable. For the three months ended September 30, 2013, there was no reclassification of Non-PCI loans receivable as Non-PCI loans held for sale, and Non-PCI loans held for sale of $11.9 million were sold.

The following table details the information on the sales and reclassifications of loans receivable to loans held for sale (excluding PCI loans) by portfolio segment for the nine months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer		Total Non-PCI
	(In thousands)
September 30, 2014
Balance at beginning of period	$	—		$	—		$	—	$	—
Origination of loans held for sale		29,591			5,207			—		34,798
Sales of loans held for sale		(23,953	)		(3,033	)		—		(26,986	)
Principal payoffs and amortization		(27	)		(28	)		—		(55	)
Balance at end of period	$	5,611		$	2,146		$	—	$	7,757
September 30, 2013
Balance at beginning of period	$	7,977		$	329		$	—	$	8,306
Origination of loans held for sale		58,725			4,387			—		63,112
Reclassification from loans receivable to loans held for sale		7,593			416			—		8,009
Reclassification from loans held for sale to loans receivable		(2,118	)		(416	)		—		(2,534	)
Sales of loans held for sale		(67,235	)		(4,391	)		—		(71,626	)
Principal payoffs and amortization		(34	)		(5	)		—		(39	)
Balance at end of period	$	4,908		$	320		$	—	$	5,228

For the nine months ended September 30, 2014, there was no reclassification of Non-PCI loans receivable as Non-PCI loans held for sale, and Non-PCI loans held for sale of $27.0 million were sold. In addition, there was no reclassification from Non-PCI loans held for sale to Non-PCI loans receivable. For the nine months ended September 30, 2013, Non-PCI loans receivable of $8.0 million were reclassified as Non-PCI loans held for sale, and Non-PCI loans held for sale of $71.6 million were sold.

Allowance for Loan Losses and Allowance for Off-Balance Sheet Items

Activity in the allowance for loan losses and allowance for off-balance sheet items was as follows for the periods indicated:

	As of and for the Three Months Ended						As of and for the Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	51,886		$	59,876		$	57,555		$	63,305
Charge-offs		(1,418	)		(4,610	)		(5,569	)		(11,124	)
Recoveries on loans previously charged off		663			2,383			6,656			4,964
Net loan (charge-offs) recoveries		(755	)		(2,227	)		1,087			(6,160	)
Provision (negative provision) charged to operating expense		48			(10	)		(7,463	)		494
Balance at end of period	$	51,179		$	57,639		$	51,179		$	57,639
Allowance for off-balance sheet items:
Balance at beginning of period	$	1,592		$	1,320		$	1,247		$	1,824
(Negative provision) provision charged to operating expense		(48	)		10			297			(494	)
Balance at end of period	$	1,544		$	1,330		$	1,544		$	1,330

19

There was no allowance for loan losses on our PCI loans as of September 30, 2014. The allowance for off-balance sheet items is maintained at a level believed to be sufficient to absorb estimated probable losses related to these unfunded credit facilities. The determination of the allowance adequacy is 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. As of September 30, 2014 and 2013, the allowance for off-balance sheet items amounted to $1.5 million and $1.3 million, respectively. Net adjustments to the allowance for off-balance sheet items are included in the provision for credit losses.

The following table details the information on the allowance for loan losses by portfolio segment for the three months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer			Unallocated			Total
	(In thousands)
September 30, 2014
Allowance for loan losses:
Beginning balance	$	40,303		$	9,738		$	540		$	1,305		$	51,886
Charge-offs		(884	)		(499	)		(35	)		—			(1,418	)
Recoveries on loans previously charged off		293			365			5			—			663
(Negative provision) provision		179			260			(186	)		(205	)		48
Ending balance	$	39,891		$	9,864		$	324		$	1,100		$	51,179
Ending balance: individually evaluated for impairment	$	2,027		$	3,757		$	—		$	—		$	5,784
Ending balance: collectively evaluated for impairment	$	37,864		$	6,107		$	324		$	1,100		$	45,395
Loans receivable:
Ending balance	$	2,411,154		$	235,898		$	28,907		$	—		$	2,675,959
Ending balance: individually evaluated for impairment	$	35,654		$	11,970		$	1,758		$	—		$	49,382
Ending balance: collectively evaluated for impairment	$	2,308,884		$	223,578		$	27,091		$	—		$	2,559,553
Ending balance: acquired with deteriorated credit quality	$	66,616		$	350		$	58		$	—		$	67,024

	Real Estate			Commercial and Industrial			Consumer			Unallocated		Total
	(In thousands)
September 30, 2013
Allowance for loan losses:
Beginning balance	$	46,396		$	11,118		$	1,884		$	478	$	59,876
Charge-offs		(1,017	)		(3,575	)		(18	)		—		(4,610	)
Recoveries on loans previously charged off		1,641			737			5			—		2,383
Provision (negative provision)		(1,795	)		388			(232	)		1,629		(10	)
Ending balance	$	45,225		$	8,668		$	1,639		$	2,107	$	57,639
Ending balance: individually evaluated for impairment	$	564		$	1,475		$	330		$	—	$	2,369
Ending balance: collectively evaluated for impairment	$	44,661		$	7,193		$	1,309		$	2,107	$	55,270
Loans receivable:
Ending balance	$	1,921,659		$	203,547		$	34,065		$	—	$	2,159,271
Ending balance: individually evaluated for impairment	$	29,424		$	12,468		$	1,574		$	—	$	43,466
Ending balance: collectively evaluated for impairment	$	1,892,235		$	191,079		$	32,491		$	—	$	2,115,805

20

The following table details the information on the allowance for loan losses by portfolio segment for the nine months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer			Unallocated			Total
	(In thousands)
September 30, 2014
Allowance for loan losses:
Beginning balance	$	43,550		$	11,287		$	1,427		$	1,291		$	57,555
Charge-offs		(2,073	)		(3,394	)		(102	)		—			(5,569	)
Recoveries on loans previously charged off		3,298			3,338			20			—			6,656
(Negative provision) provision		(4,884	)		(1,367	)		(1,021	)		(191	)		(7,463	)
Ending balance	$	39,891		$	9,864		$	324		$	1,100		$	51,179
Ending balance: individually evaluated for impairment	$	2,027		$	3,757		$	—		$	—		$	5,784
Ending balance: collectively evaluated for impairment	$	37,864		$	6,107		$	324		$	1,100		$	45,395
Loans receivable:
Ending balance	$	2,411,154		$	235,898		$	28,907		$	—		$	2,675,959
Ending balance: individually evaluated for impairment	$	35,654		$	11,970		$	1,758		$	—		$	49,382
Ending balance: collectively evaluated for impairment	$	2,308,884		$	223,578		$	27,091		$	—		$	2,559,553
Ending balance: acquired with deteriorated credit quality	$	66,616		$	350		$	58		$	—		$	67,024

	Real Estate			Commercial and Industrial			Consumer			Unallocated		Total
	(In thousands)
September 30, 2013
Allowance for loan losses:
Beginning balance	$	49,472		$	10,636		$	2,280		$	917	$	63,305
Charge-offs		(4,592	)		(6,314	)		(218	)		—		(11,124	)
Recoveries on loans previously charged off		2,923			1,981			60			—		4,964
Provision (negative provision)		(2,578	)		2,365			(483	)		1,190		494
Ending balance	$	45,225		$	8,668		$	1,639		$	2,107	$	57,639
Ending balance: individually evaluated for impairment	$	564		$	1,475		$	330		$	—	$	2,369
Ending balance: collectively evaluated for impairment	$	44,661		$	7,193		$	1,309		$	2,107	$	55,270
Loans receivable:
Ending balance	$	1,921,659		$	203,547		$	34,065		$	—	$	2,159,271
Ending balance: individually evaluated for impairment	$	29,424		$	12,468		$	1,574		$	—	$	43,466
Ending balance: collectively evaluated for impairment	$	1,892,235		$	191,079		$	32,491		$	—	$	2,115,805

Credit Quality Indicators

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

Pass and Pass-Watch: Pass and Pass-Watch loans, grades (0-4), are in compliance in all respects 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 incorporates all performing loans with no credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.

Special Mention: A Special Mention credit, 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 credit, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A credit 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.

21

Doubtful: A Doubtful credit, 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 credit, 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.

As of September 30, 2014 and December 31, 2013, pass/pass-watch (grade 0-4), criticized (grade 5) and classified (grade 6-7) loans (excluding PCI loans), disaggregated by loan class, were as follows:

	As of September 30, 2014
	Pass/Pass-Watch (Grade 0-4)		Criticized (Grade 5)		Classified (Grade 6-7)		Total
	(In thousands)
Real estate loans:
Commercial property
Retail	$	620,511	$	12,821	$	2,529	$	635,861
Hotel/Motel		399,006		48,995		4,404		452,405
Gas station		320,501		10,054		9,831		340,386
Other		780,400		13,599		11,697		805,696
Construction		4,146		—		—		4,146
Residential property		103,812		122		2,110		106,044
Commercial and industrial loans:
Commercial term		108,908		1,315		8,952		119,175
Commercial lines of credit		74,286		—		960		75,246
International loans		38,676		—		2,451		41,127
Consumer loans		26,626		140		2,083		28,849
Total Non-PCI loans	$	2,476,872	$	87,046	$	45,017	$	2,608,935

	As of December 31, 2013
	Pass/Pass-Watch (Grade 0-4)		Criticized (Grade 5)		Classified (Grade 6-7)		Total
	(In thousands)
Real estate loans:
Commercial property
Retail	$	531,014	$	5,309	$	7,296	$	543,619
Hotel/Motel		308,483		1,796		12,648		322,927
Gas station		279,636		3,104		9,817		292,557
Other		690,481		8,524		32,612		731,617
Residential property		77,422		—		1,656		79,078
Commercial and industrial loans:
Commercial term		107,712		2,007		14,672		124,391
Commercial lines of credit		69,823		—		1,219		71,042
International loans		35,777		576		—		36,353
Consumer loans		30,044		163		2,298		32,505
Total Non-PCI loans	$	2,130,392	$	21,479	$	82,218	$	2,234,089

22

The following is an aging analysis of past due loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:

	As of September 30, 2014
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(In thousands)
Real estate loans:
Commercial property
Retail	$	1,927	$	146	$	182	$	2,255	$	633,606	$	635,861	$	—
Hotel/Motel		52		733		1,203		1,988		450,417		452,405		—
Gas station		4,781		794		544		6,119		334,267		340,386		—
Other		1,867		67		380		2,314		803,382		805,696		15
Construction		—		—		—		—		4,146		4,146		—
Residential property		113		121		486		720		105,324		106,044		—
Commercial and industrial loans:
Commercial term		1,410		587		2,873		4,870		114,305		119,175		—
Commercial lines of credit		274		197		—		471		74,775		75,246		—
International loans		251		—		—		251		40,876		41,127		—
Consumer loans		—		—		248		248		28,601		28,849		—
Total Non-PCI loans	$	10,675	$	2,645	$	5,916	$	19,236	$	2,589,699	$	2,608,935	$	15

	As of December 31, 2013
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(In thousands)
Real estate loans:
Commercial property
Retail	$	202	$	426	$	2,196	$	2,824	$	540,794	$	543,618	$	—
Hotel/Motel		1,087		—		1,532		2,619		320,308		322,927		—
Gas station		141		410		153		704		291,853		292,557		—
Other		423		2,036		839		3,298		728,320		731,618		—
Residential property		—		122		279		401		78,677		79,078		—
Commercial and industrial loans:
Commercial term		1,443		886		3,269		5,598		118,793		124,391		—
Commercial lines of credit		—		150		250		400		70,642		71,042		—
International loans		—		—		—		—		36,353		36,353		—
Consumer loans		311		42		77		430		32,075		32,505		—
Total Non-PCI loans	$	3,607	$	4,072	$	8,595	$	16,274	$	2,217,815	$	2,234,089	$	—

Impaired Loans

Loans are considered impaired when nonaccrual and principal or interest payments have been contractually past due for 90 days or more, unless the loan is both well-collateralized and in the process of collection; or they are classified as Troubled Debt Restructuring (“TDR”) loans to offer terms not typically granted by the Bank; or when current information or events make it unlikely to collect in full according to the contractual terms of the loan agreements; or there is a deterioration in the borrower’s financial condition that raises uncertainty as to timely collection of either principal or interest; or full payment of both interest and principal is in doubt according to the original contractual terms.

We evaluate loan impairment in accordance with applicable GAAP. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent, less costs to sell. If the measure of the impaired loan is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses or, alternatively, a specific allocation will be established. Additionally, loans that are considered impaired are specifically excluded from the quarterly migration analysis when determining the amount of the allowance for loan losses required for the period.

The allowance for collateral-dependent loans is determined by calculating the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals. The allowance for collateral-dependent loans varies from loan to loan based on the collateral coverage of the loan at the time of designation as nonperforming. We continue to monitor the collateral coverage, using recent appraisals, on these loans on a quarterly basis and adjust the allowance accordingly.

23

The following tables provide information on impaired loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:

	Recorded Investment		Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Related Allowance
	(In thousands)
September 30, 2014
Real estate loans:
Commercial property
Retail	$	4,443	$	4,543	$	1,940	$	2,503	$	256
Hotel/Motel		4,042		4,855		4,042		—		1,261
Gas station		14,152		14,681		13,692		460		166
Other		9,856		11,266		8,518		1,338		344
Residential property		3,161		3,292		3,161		—		—
Commercial and industrial loans:
Commercial term		7,958		8,408		1,914		6,044		3,469
Commercial lines of credit		2,874		2,976		2,692		182		183
International loans		1,138		1,138		460		678		105
Consumer loans		1,758		1,910		1,758		—		—
Total Non-PCI loans	$	49,382	$	53,069	$	38,177	$	11,205	$	5,784
December 31, 2013
Real estate loans:
Commercial property
Retail	$	6,244	$	6,332	$	3,767	$	2,477	$	305
Hotel/Motel		6,200		6,940		4,668		1,532		1,183
Gas station		9,389		9,884		8,592		797		209
Other		11,451		12,882		9,555		1,896		351
Residential property		2,678		2,773		2,678		—		—
Commercial and industrial loans:
Commercial term		13,834		14,308		2,929		10,905		3,806
Commercial lines of credit		614		686		173		441		252
International loans		1,087		1,087		286		801		78
Consumer loans		1,569		1,671		644		925		284
Total Non-PCI loans	$	53,066	$	56,563	$	33,292	$	19,774	$	6,468

24

	Average Recorded Investment for the Three Months Ended		Interest Income Recognized for the Three Months Ended		Average Recorded Investment for the Nine Months Ended		Interest Income Recognized for the Nine Months Ended
	(In thousands)
September 30, 2014
Real estate loans:
Commercial property
Retail	$	4,456	$	36	$	5,682	$	215
Hotel/Motel		4,206		102		4,149		232
Gas station		14,181		218		12,023		587
Other		9,898		232		10,716		682
Residential property		3,173		30		2,853		87
Commercial and industrial loans:
Commercial term		8,118		126		10,007		443
Commercial lines of credit		2,884		36		1,447		61
International loans		1,146		—		1,136		—
Consumer loans		1,765		16		1,619		46
Total Non-PCI loans	$	49,827	$	796	$	49,632	$	2,353
September 30, 2013
Real estate loans:
Commercial property
Retail	$	2,723	$	27	$	3,703	$	105
Hotel/Motel		6,377		127		4,752		384
Gas station		8,777		229		8,775		569
Other		8,699		243		9,512		779
Residential property		2,992		33		3,026		92
Commercial and industrial loans:
Commercial term		10,581		191		12,751		692
Commercial lines of credit		840		23		1,137		47
International loans		1,197		—		1,342		—
Consumer loans		1,581		27		1,624		54
Total Non-PCI loans	$	43,767	$	900	$	46,622	$	2,722

The following is a summary of interest foregone on impaired loans (excluding PCI loans) for the periods indicated:

	Three Months Ended						Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
	(In thousands)
Interest income that would have been recognized had impaired loans performed in accordance with their original terms	$	1,063		$	1,058		$	3,490		$	3,183
Less: Interest income recognized on impaired loans		(796	)		(900	)		(2,353	)		(2,722	)
Interest foregone on impaired loans	$	267		$	158		$	1,137		$	461

There were no commitments to lend additional funds to borrowers whose loans are included above.

Nonaccrual Loans

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 management believes 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.

25

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 payments become current and full repayment is expected.

The following table details nonaccrual loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:

	September 30, 2014		December 31, 2013
	(In thousands)
Real estate loans:
Commercial property
Retail	$	2,062	$	2,946
Hotel/Motel		3,051		5,200
Gas station		5,208		2,492
Other		3,674		4,808
Residential property		1,516		1,365
Commercial and industrial loans:
Commercial term		6,060		7,146
Commercial lines of credit		674		423
Consumer loans		1,758		1,497
Total nonaccrual Non-PCI loans	$	24,003	$	25,877

The following table details nonperforming assets (excluding PCI loans) as of the dates indicated:

	September 30, 2014		December 31, 2013
	(In thousands)
Nonaccrual Non-PCI loans	$	24,003	$	25,877
Loans 90 days or more past due and still accruing		15		—
Total nonperforming Non-PCI loans		24,018		25,877
Other real estate owned		24,781		756
Total nonperforming assets	$	48,799	$	26,633

Loans on nonaccrual status, excluding loans held for sale, totaled $24.0 million as of September 30, 2014, compared to $25.9 million as of December 31, 2013, representing a 7.2 percent decrease. Delinquent loans (defined as 30 days or more past due), excluding loans held for sale, were $19.2 million as of September 30, 2014, compared to $16.3 million as of December 31, 2013, representing a 18.2 percent increase.

As of September 30, 2014, other real estate owned (“OREO”) consisted of forty properties, of which $20.2 million and $4.6 million were commercial and residential properties, respectively, with a combined carrying value of $24.8 million and no valuation adjustment. Of $24.8 million, $22.3 million was OREOs assumed in the CBI acquisition. As of December 31, 2013, there were three OREOs with a combined carrying value of $756,000 and a valuation adjustment of $56,000.

Troubled Debt Restructuring

In April 2011, the FASB issued ASU 2011-02, A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring, which clarifies the guidance for evaluating whether a restructuring constitutes a TDR. This guidance is effective for the first interim or annual period beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption. For the purposes of measuring impairment of loans that are newly considered impaired, the guidance should be applied prospectively for the first interim or annual period beginning on or after June 15, 2011.

As a result of the amendments in ASU 2011-02, we reassessed all restructurings that occurred on or after the beginning of the annual period and identified certain receivables as TDRs. Upon identifying those receivables as TDRs, we considered them impaired and applied the impairment measurement guidance prospectively for those receivables newly identified as impaired.

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The following table details troubled debt restructurings (excluding PCI loans), disaggregated by concession type and by loan type, as of September 30, 2014 and December 31, 2013:

	Nonaccrual TDRs										Accrual TDRs
	Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total		Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total
	(In thousands)
September 30, 2014
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	1,856	$	1,856	$	307	$	—	$	—	$	—	$	307
Hotel/Motel		1,158		727		—		—		1,885		991		—		—		—		991
Gas station		1,106		—		—		—		1,106		2,351		—		—		—		2,351
Other		—		1,532		465		59		2,056		3,310		—		792		1,378		5,480
Residential property		755		—		—		—		755		—		—		—		311		311
Commercial and industrial loans:
Commercial term		118		2		1,007		1,567		2,694		61		227		2,118		1,176		3,582
Commercial lines of credit		230		—		316		128		674		2,200		—		—		—		2,200
Consumer loans		—		—		135		—		135		—		—		—		—		—
Total Non-PCI loans	$	3,367	$	2,261	$	1,923	$	3,610	$	11,161	$	9,220	$	227	$	2,910	$	2,865	$	15,222
December 31, 2013
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	750	$	750	$	—	$	—	$	—	$	474	$	474
Hotel/Motel		1,272		758		—		—		2,030		1,000		—		—		—		1,000
Gas station		1,291		—		729		—		2,020		365		—		—		2,609		2,974
Other		403		1,279		555		—		2,237		2,956		—		1,253		2,027		6,236
Residential property		795		—		—		—		795		—		—		—		—		—
Commercial and industrial loans:
Commercial term		25		206		1,449		851		2,531		1,203		—		2,286		3,817		7,306
Commercial lines of credit		—		—		—		173		173		—		—		191		—		191
International loans		—		—		—		—		—		—		—		1,087		—		1,087
Consumer loans		—		—		—		—		—		—		—		149		—		149
Total Non-PCI loans	$	3,786	$	2,243	$	2,733	$	1,774	$	10,536	$	5,524	$	—	$	4,966	$	8,927	$	19,417

As of September 30, 2014 and December 31, 2013, total TDRs, excluding loans held for sale, were $26.4 million and $30.0 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise considered to the borrower, for economic or legal reasons related to the borrower’s financial difficulties. Loans are considered to be TDRs if they were restructured through payment structure modifications such as reducing the amount of principal and interest due monthly and/or allowing for interest only monthly payments for six months or less. All TDRs are impaired and are individually evaluated for specific impairment using one of these three criteria: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent.

At September 30, 2014 and December 31, 2013, TDRs, excluding loans held for sale, were subjected to specific impairment analysis, and $3.7 million and $2.8 million, respectively, of reserves relating to these loans were included in the allowance for loan losses.

The following table details troubled debt restructurings (excluding PCI loans), disaggregated by loan class, for the three months ended September 30, 2014 and 2013:

	September 30, 2014						September 30, 2013
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(In thousands, except number of loans)
Real estate loans:
Commercial property
Hotel/Motel (1)		—	$	—	$	—		1	$	1,000	$	1,000
Gas station (2)		1		2,014		1,991		1		107		91
Other (3)		1		395		385		2		1,011		1,014
Commercial and industrial loans:
Commercial term (4)		—		—		—		8		1,015		1,002
Commercial lines of credit (5)		1		2,092		2,200		—		—		—
Total Non-PCI loans		3	$	4,501	$	4,576		12	$	3,133	$	3,107

⁽¹⁾  Includes a modification of $1.0 million through a payment deferral for the three months ended September 30, 2013.

⁽²⁾  Includes a modification of $2.0 million through a payment deferral for the three months ended September 30, 2014, and a modification of $91,000 through a payment deferral for the three months ended September 30, 2013.

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⁽³⁾  Includes a modification of $385,000 through a payment deferral for the three months ended September 30, 2014, and modifications of $365,000 through a payment deferral and reduction of principal or accrued interest and $649,000 through an extension of maturity for the three months ended September 30, 2013.

⁽⁴⁾  Includes modifications of $381,000 through payment deferrals and $621,000 through extensions of maturity for the three months ended September 30, 2013.

⁽⁵⁾  Includes a modification of $2.2 million through a payment deferral for the three months ended September 30, 2014.

During the three months ended September 30, 2014, we restructured monthly payments on three loans, with a net carrying value of $4.6 million as of September 30, 2014, through temporary payment structure modifications or re-amortization. For the restructured loans on accrual status, we determined that, based on the financial capabilities of the borrowers at the time of the loan restructuring and the borrowers’ past performance in the payment of debt service under the previous loan terms, performance and collection under the revised terms are probable.

The following table details troubled debt restructurings (excluding PCI loans), disaggregated by loan class, for the nine months ended September 30, 2014 and 2013:

	September 30, 2014						September 30, 2013
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(In thousands, except number of loans)
Real estate loans:
Commercial property
Retail (1)		1	$	2,002	$	1,856		—	$	—	$	—
Hotel/Motel (2)		—		—		—		1		1,000		1,000
Gas station (3)		1		2,040		1,991		1		113		91
Other (4)		3		1,422		1,386		3		1,176		1,144
Residential property (5)		1		317		311		—		—		—
Commercial and industrial loans:
Commercial term (6)		5		327		263		15		1,787		1,625
Commercial lines of credit (7)		3		2,366		2,563		—		—		—
International loans (8)		—		—		—		2		1,584		1,180
Consumer loans (9)		—		—		—		1		149		149
Total Non-PCI loans		14	$	8,474	$	8,370		23	$	5,809	$	5,189

⁽¹⁾  Includes a modification of $1.9 million through an extension of maturity for the nine months ended September 30, 2014.

⁽²⁾  Includes a modification of $1.0 million through an extension of maturity for the nine months ended September 30, 2013.

⁽³⁾  Includes a modification of $2.0 million through a payment deferral for the nine months ended September 30, 2014, and a modification of $91,000 a payment deferral for the nine months ended September 30, 2013.

⁽⁴⁾  Includes modifications of $1.3 million through payment deferrals and $59,000 through an extension of maturity for the nine months ended September 30, 2014, and modifications of $356,000 through a payment deferral, $130,000 through a reduction of principal or accrued interests and $649,000 through an extension of maturity for the nine months ended September 30, 2013.

⁽⁵⁾  Includes a modification of $311,000 through an extension of maturity for the nine months ended September 30, 2014.

⁽⁶⁾  Includes modifications of $39,000 through a payment deferral, $51,000 through reductions of principal or accrued interest and $173,000 through an extension of maturity for the nine months ended September 30, 2014, and modifications of $388,000 through payment deferrals and $1.2 million through extensions of maturity for the nine months ended September 30, 2013.

⁽⁷⁾  Includes modifications of $2.4 million through payment deferrals and $134,000 through a reduction of principal or accrued interest for the nine months ended September 30, 2014.

⁽⁸⁾  Includes modifications of $1.2 million through reductions of principal or accrued interest for the nine months ended September 30, 2013.

⁽⁹⁾  Includes a modification of $149,000 through a reduction of principal or accrued interest for the nine months ended September 30, 2013.

During the nine months ended September 30, 2014, we restructured monthly payments on 14 loans, with a net carrying value of $8.4 million as of September 30, 2014, through temporary payment structure modifications or re-amortization. For the restructured loans on accrual status, we determined that, based on the financial capabilities of the borrowers at the time of the loan restructuring and the borrowers’ past performance in the payment of debt service under the previous loan terms, performance and collection under the revised terms are probable.

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The following table details troubled debt restructurings, excluding PCI loans, that defaulted subsequent to the modifications occurring within the previous twelve months, disaggregated by loan class, for the three and nine months ended September 30, 2014 and 2013, respectively:

	Three Months Ended								Nine Months Ended
	September 30, 2014				September 30, 2013				September 30, 2014				September 30, 2013
	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
	(In thousands, except number of loans)
Real estate loans:
Commercial property
Retail		1	$	1,856		—	$	—		1	$	1,856		—	$	—
Other		—		—		1		130		—		—		1		130
Commercial and industrial loans:
Commercial term		2		47		—		—		2		47		1		29
Commercial lines of credit		2		412		—		—		3		546		—		—
Total Non-PCI loans		5	$	2,315		1	$	130		6	$	2,449		2	$	159

Purchased Credit Impaired Loans

As part of the CBI acquisition during the third quarter ended September 30, 2014, the Company purchased loans for which there was, at acquisition, evidence of deterioration of credit quality subsequent to origination and it was probable, at acquisition, that all contractually required payments would not be collected. The following table presents the outstanding balance and carrying amount of those PCI loans as of the dates indicated:

	Carrying Amount			Accretable Yield
	(In thousands)
Balance at January 1, 2014	$	—		$	—
Additions from CBI acquisition at August 31, 2014		75,878			(22,858	)
Accretion		491			491
Payment received		(5,892	)		—
Disposals/transfers to OREO		(3,453	)		212
Balance at September 30, 2014	$	67,024		$	(22,155	)

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As of September 30, 2014, pass/pass-watch (grade 0-4), criticized (grade 5) and classified (grade 6-7) PCI loans, disaggregated by loan class, were as follows:

	As of September 30, 2014
	Pass/Pass-Watch (Grade 0-4)		Criticized (Grade 5)		Classified (Grade 6-7)		Total
Real estate loans:
Commercial property
Retail	$	2,939	$	215	$	12,786	$	15,940
Hotel/Motel		248		—		13,958		14,206
Gas station		10,200		1,205		6,664		18,069
Other		2,154		—		13,561		15,715
Residential property		—		—		2,686		2,686
Commercial and industrial loans:
Commercial term		—		—		350		350
Consumer loans		—		—		58		58
Total PCI loans	$	15,541	$	1,420	$	50,063	$	67,024

Servicing Assets

The changes in servicing assets for the nine months ended September 30, 2014 and 2013 were as follows:

	Nine Months Ended September 30,
	2014			2013
	(In thousands)
Balance at beginning of period	$	6,833		$	5,542
Additions from CBI acquisition		1,458			—
Addition related to sale of SBA loans		871			1,996
Amortization		(1,318	)		(1,152	)
Balance at end of period	$	7,844		$	6,386

At September 30, 2014 and 2013, we serviced loans sold to unaffiliated parties in the amounts of $341.6 million and $330.4 million, respectively. These represented loans that have been 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 being serviced were SBA loans.

FDIC Loss Sharing Asset

The FDIC loss sharing asset related to the assumption of Single Family and Commercial Shared-Loss Agreement (“SLAs”) between CBI and the FDIC arising from the CBI’s acquisition of Mutual Bank. The loss sharing asset was measured at its fair value as of August 31, 2014 in conjunction with the CBI acquisition. There is a three-year recovery period which begins at the expiration of the Commercial SLA. During this period, 80% of any recoveries of previously charged-off and reimbursed Commercial SLA loans need to be reimbursed to the FDIC. As of September 30, 2014, the FDIC loss sharing asset was related to $7.7 million net receivable from the FDIC. Single-family loans under the Single family SLA as of September 30, 2014 were $3.7 million.

Note 7 — Income Taxes

The Company’s income tax expenses for the continuing operations were $5.0 million for the three months ended September 30, 2014, compared to $6.6 million for the same period in 2013. The effective income tax rate was 27.25 percent for the three months ended September 30, 2014, compared to 38.95 percent for the same period in 2013. For the nine months ended September 30, 2014, income tax expense for the continuing operations were $19.7 million, compared to $17.5 million for the same period in 2013. The effective income tax rate was 35.48 percent, compared to 41.42 percent for the same period in 2013. The decrease in the effective tax rate for the three months ended September 30, 2014 was due mainly to tax rate reduction to the adjustment for the nontaxable bargain purchase gain, which is excluded from taxable income. The decrease in the effective tax rate for the nine months ended September 30, 2014, as compared to the same period in 2013, was due mainly to tax rate reduction to the adjustment for the bargain purchase gain,

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a $400,000 deferred tax benefit generated from the sale of the insurance businesses and tax benefits to be realized from investments in low income tax credit funds, offset by the expiration of the California EZ net interest deduction and EZ hiring credits. Management concluded that no valuation allowance is required for the deferred tax assets except for the portion related to certain state net operating losses as of September 30, 2014.

As of September 30, 2014, the Company was subject to examinations by various federal and state tax authorities for the tax years ended December 31, 2004 through 2013. As of September 30, 2014, the Company was subjected to audits or examinations by the Internal Revenue Service for the 2009 tax year and the California Franchise Tax Board for the 2008 and 2009 tax years. Management does not anticipate any material changes in our financial statements due to the results of the audits.

Note 8 — Subordinated Debentures and Rescinded Stock Obligation

Subordinated Debentures

During the third quarter of 2014 with the acquisition of CBI, the Company assumed CBI’s Junior Subordinated Deferrable Interest Debentures (“Subordinated Debentures”) with a notional balance of $26.8 million and an estimated fair value of $18.5 million. The $8.3 million discount will be amortized to interest expense over the remaining term. In December 2005, a trust was formed by CBI and issued $26.0 million Trust Preferred Securities (“TPS”) at 6.26 percent fixed rate for the first five years and a variable rate at the 3 month LIBOR plus 140 basis thereafter and invested the proceeds Subordinated Debentures. The Subordinated Debentures will mature on December 31, 2035, which date may be shortened to, at the Bank’s option if certain conditions are met. The TPS will be subject to mandatory redemption if the Subordinated Debentures are repaid by the Bank. Interest is payable quarterly, and the Bank has the option to defer interest payments on the Subordinated Debentures from time to time for a period not to exceed five consecutive years. Interest expense related to the amortization discount was 35,000 for the three months ended September 30, 2014.

Rescinded Stock Obligation

Hanmi Finanical assumed a rescinded stock obligation of $15.7 million and related accrued interest payable of $4.9 million at the closing date. The obligation resulted from the issuance of CBI common shares more than what was legally authorized in 2009 and 2010. Interest has been accrued on the obligation with interest rates varying state to state. Interest expense of $87,000 was recorded in September 2014, reflecting a weighted average rate of 6.79%. Accrued interest on the obligation as of September 30, 2014 was $5.1 million. Hanmi Financial has been in the process of paying off the obligation since the acquisition date.

Note 9 — Stockholders’ Equity

Stock Warrants

As part of the agreement dated as of July 27, 2010 with Cappello Capital Corp., the placement agent in connection with our best efforts offering and the financial advisor in connection with our completed rights offering, we issued warrants to purchase 250,000 shares of our common stock for services performed. The warrants have an exercise price of $9.60 per share. According to the agreement, the warrants vested on October 14, 2010 and are exercisable until their expiration on October 14, 2015. The Company followed the guidance of FASB ASC Topic 815-40, Derivatives and Hedging—Contracts in Entity’s Own Stock, which establishes a framework for determining whether certain freestanding and embedded instruments are indexed to a company’s own stock for purposes of evaluation of the accounting for such instruments under existing accounting literature. Under GAAP, the issuer is required to measure the fair value of the equity instruments in the transaction as of earlier of (i) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty’s performance is complete. The fair value of the warrants at the date of issuance totaling $2.0 million was recorded as a liability and a cost of equity, which was determined by the Black-Scholes option pricing model. The expected stock volatility was based on historical volatility of our common stock over the expected term of the warrants. We used a weighted average expected stock volatility of 111.46 percent. The expected life assumption was based on the contract term of five years. The dividend yield of zero was based on the fact that we had no intention to pay cash dividends for the term at the grant date. The risk free rate of 2.07 percent used for the warrants was equal to the zero coupon rate in effect at the time of the grant. During the third quarter of 2014, the remaining stock warrants were exercised and there were no outstanding stock warrants as of September 30, 2014.

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Note 10 – Accumulated Other Comprehensive Income

Activity in accumulated other comprehensive income for the three months ended September 30, 2014 and 2013 was as follows:

	Unrealized Gains and Losses on Available-for-Sale Securities			Unrealized Gains and Losses on Interest-Only Strip			Tax Benefit		Total
	(In thousands)
For the three months ended September 30 2014:
Balance at beginning of period	$	(5,534	)	$	17		$	3,367	$	(2,150	)
Other comprehensive (loss) income before reclassification		(4,947	)		(3	)		2,102		(2,848	)
Reclassification from accumulated other comprehensive income		(67	)		—			—		(67	)
Period change		(5,014	)		(3	)		2,102		(2,915	)
Balance at end of period	$	(10,548	)	$	14		$	5,469	$	(5,065	)
For the three months ended September 30, 2013:
Balance at beginning of period	$	915		$	17		$	702	$	1,634
Other comprehensive (loss) income before reclassification		(10,020	)		—			4,528		(5,492	)
Reclassification from accumulated other comprehensive income		(611	)		—			—		(611	)
Period change		(10,631	)		—			4,528		(6,103	)
Balance at end of period	$	(9,716	)	$	17		$	5,230	$	(4,469	)

For the three months ended September 30, 2014, there were a $2.8 million of net unrealized loss on available-for-sale securities and interest-only strip, and a $67,000 reclassification from accumulated other comprehensive income to gains in earnings resulting from the sale of available-for-sale securities. The $67,000 reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of investment securities under noninterest income. The securities were previously recorded as unrealized gains of $23,000 in accumulated other comprehensive income.

For the three months ended September 30, 2013, there were a $5.5 million of net unrealized loss on available-for-sale securities and interest-only strip, and a $611,000 reclassification from accumulated other comprehensive income to gains in earnings resulting from the redemption and sale of available-for-sale securities. The $611,000 reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of investment securities under noninterest income. The securities were previously recorded as unrealized gains of $899,000 in accumulated other comprehensive income.

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Activity in accumulated other comprehensive income for the nine months ended September 30, 2014 and 2013 was as follows:

	Unrealized Gains and Losses  on Available-for-Sale Securities			Unrealized Gains and Losses on Interest-Only Strip			Tax Benefit (Expense)			Total
	(In thousands)
For the nine months ended September 30 2014:
Balance at beginning of period	$	(18,187	)	$	16		$	8,791		$	(9,380	)
Other comprehensive income (loss) before reclassification		9,491			(2	)		(3,322	)		6,167
Reclassification from accumulated other comprehensive income		(1,852	)		—			—			(1,852	)
Period change		7,639			(2	)		(3,322	)		4,315
Balance at end of period	$	(10,548	)	$	14		$	5,469		$	(5,065	)
For the nine months ended September 30, 2013:
Balance at beginning of period	$	7,348		$	16		$	(1,946	)	$	5,418
Other comprehensive (loss) income before reclassification		(16,141	)		1			7,176			(8,964	)
Reclassification from accumulated other comprehensive income		(923	)		—			—			(923	)
Period change		(17,064	)		1			7,176			(9,887	)
Balance at end of period	$	(9,716	)	$	17		$	5,230		$	(4,469	)

For the nine months ended September 30, 2014, there were a $6.2 million of net unrealized gain on available-for-sale securities and interest-only strip, and a $1.8 million reclassification from accumulated other comprehensive income to gains in earnings resulting from the sale of available-for-sale securities. The $1.8 million reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of investment securities under noninterest income. The securities were previously recorded as unrealized losses of $498,000 in accumulated other comprehensive income.

For the nine months ended September 30, 2013, there were a $9.0 million of net unrealized loss on available-for-sale securities and interest-only strip, and a $923,000 reclassification from accumulated other comprehensive income to gains in earnings resulting from the redemption of available-for-sale securities. The $923,000 reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of investment securities under noninterest income. The securities were previously recorded as unrealized gains of $2.4 million in accumulated other comprehensive income.

Note 11 — Regulatory Matters

Risk-Based Capital

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

In order for banks to be considered “well capitalized,” the agencies require them to maintain a minimum ratio of qualifying total capital to risk-weighted assets of 10.0 percent and a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0 percent. In addition to the risk-based guidelines, the agencies require depository institutions to maintain a minimum ratio of Tier 1 capital to average assets, referred to as the leverage ratio, of 5.0 percent.

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The capital ratios of Hanmi Financial and the Bank as of September 30, 2014 and December 31, 2013 were as follows:

	Actual					Minimum Regulatory Requirement					Minimum to Be Categorized as “Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(In thousands)
September 30, 2014
Total capital (to risk-weighted assets):
Hanmi Financial	$	482,481		16.33	%	$	236,338		8.00	%		N/A		N/A
Hanmi Bank	$	482,802		16.28	%	$	237,193		8.00	%	$	296,492		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	445,357		15.08	%	$	118,169		4.00	%		N/A		N/A
Hanmi Bank	$	444,771		15.00	%	$	118,597		4.00	%	$	177,895		6.00	%
Tier 1 capital (to average assets):
Hanmi Financial	$	445,357		12.80	%	$	139,169		4.00	%		N/A		N/A
Hanmi Bank	$	444,771		12.81	%	$	138,926		4.00	%	$	173,658		5.00	%
December 31, 2013
Total capital (to risk-weighted assets):
Hanmi Financial	$	426,614		17.48	%	$	195,210		8.00	%		N/A		N/A
Hanmi Bank	$	409,095		16.79	%	$	194,880		8.00	%	$	243,600		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	395,763		16.26	%	$	97,605		4.00	%		N/A		N/A
Hanmi Bank	$	378,295		15.53	%	$	97,440		4.00	%	$	146,160		6.00	%
Tier 1 capital (to average assets):
Hanmi Financial	$	395,763		13.62	%	$	116,249		4.00	%		N/A		N/A
Hanmi Bank	$	378,295		13.05	%	$	115,984		4.00	%	$	144,980		5.00	%

Regulatory Capital Rule Adjustments

In July 2013, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation approved the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revise minimum capital requirements and adjust prompt corrective action thresholds. The rules also revise the regulatory capital elements, add a new common equity Tier I capital ratio, and increase the minimum Tier I capital ratio requirement. The revisions permit banking organizations to retain, through a one-time election, the existing treatment for accumulated other comprehensive income. Additionally, the rules implement a new capital conservation buffer. Under the final rules, an institution is subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the capital conservation buffer amount. The rules will become effective January 1, 2015 for smaller, non-complex banking organizations with full implementation of the capital conservation buffer and certain deductions and adjustments to regulatory capital through January 1, 2019. The Company will continue to evaluate the new changes, and expects that the Company and the Bank will meet the capital requirements.

Note 12 — Fair Value Measurements

Fair Value Measurements

FASB 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.

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•	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 investment securities available for sale at fair value on a recurring basis. Certain other assets, such as loans held for sale, impaired loans, other real estate owned, and other intangible assets, 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:

Investment securities available for sale – The fair values of investment 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 investment securities include U.S. government and agency debentures and equity 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 investment securities primarily include mortgage-backed securities, municipal bonds, collateralized mortgage obligations, SBA loan pool securities, and equity securities in markets that are not 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 bonds is determined based on a proprietary model maintained by the broker-dealers. 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 investment 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.

As of September 30, 2014, we had a zero coupon tax credit municipal bond of $718,000 compared to $748,000 as of December 31, 2013. This bond was recorded at estimated fair value using a discounted cash flow method, and was measured on a recurring basis with Level 3 inputs. Key assumptions used in measuring the fair value of the tax credit bond as of September 30, 2014 were discount rate and cash flows. The discount rate was derived from the term structure of Bank Qualified (“BQ”) “BBB” rated municipal bonds, as the tax credit bond’s guarantee had the similar credit strength. The contractual future cash flows were the tax credits to be received for a remaining life of 0.48 year. We do not anticipate a significant deterioration of the tax credit bond’s credit quality. Management reviews the discount rate on an ongoing basis based on current market rates.

SBA loans held for sale – SBA loans held for sale are carried at the lower of cost or fair value. As of September 30, 2014 and December 31, 2013, we had $7.8 million and zero of SBA loans held for sale, respectively. Management obtains quotes, bids or pricing indication sheets on all or part of these loans directly from the purchasing financial institutions. Premiums received or to be received on the quotes, bids or pricing indication sheets are indicative of the fact that cost is lower than fair value. At September 30, 2014 and December 31, 2013, the entire balance of SBA loans held for sale was recorded at its cost. We record SBA loans held for sale on a nonrecurring basis with Level 2 inputs.

Impaired loans, excluding PCI loans – Nonaccrual loans and performing restructured loans are considered impaired for reporting purposes and are measured and recorded at fair value on a non-recurring basis. Nonaccrual Non-PCI loans with an unpaid principal balance over $100,000 and all performing restructured loans are reviewed individually for the amount of impairment, if any. Nonaccrual Non-PCI loans with an unpaid principal balance of $100,000 or less are evaluated for impairment collectively. The Company does not record loans at fair value on a recurring basis. However, from time to time, nonrecurring fair value adjustments to collateral dependent impaired loans are recorded based on either the current appraised value of the collateral, a Level 2 measurement, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, a Level 3 measurement.

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Other real estate owned – Fair value of OREO is based primarily on third party appraisals, less costs to sell and result in a Level 2 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.

Nonperforming loans held for sale – We reclassify certain nonperforming loans as held for sale when we decide to sell those loans. The fair value of nonperforming loans held for sale is generally based upon the quotes, bids or sales contract prices which approximate their fair value. Nonperforming loans held for sale are recorded at estimated fair value less anticipated liquidation cost. As of September 30, 2014 and December 31, 2013, we did not have nonperforming loans held for sale, which are measured on a nonrecurring basis with Level 2 inputs.

Stock warrants – The Company followed the guidance of FASB ASC Topic 815-40, Derivatives and Hedging—Contracts in Entity’s Own Stock, which establishes a framework for determining whether certain freestanding and embedded instruments are indexed to a company’s own stock for purposes of evaluation of the accounting for such instruments under existing accounting literature. Under GAAP, the issuer is required to measure the fair value of the equity instruments in the transaction as of earlier of (i) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty’s performance is complete. The fair value of the warrants was recorded as a liability and a cost of equity, which was determined by the Black-Scholes option pricing modeling and was measured on a recurring basis with Level 3 inputs.

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Assets and Liabilities Measured at Fair Value on a Recurring Basis

There were no transfers of assets between Level 1 and Level 2 of the fair value hierarchy for the three months ended September 30, 2014. As of September 30, 2014 and December 31, 2013, assets and liabilities measured at fair value on a recurring basis are as follows:

	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs with No Active Market with Identical Characteristics		Significant Unobservable Inputs		Balance
	(In thousands)
September 30, 2014
Assets:
Securities available for sale:
Mortgage-backed securities	$	—	$	584,157	$	—	$	584,157
Collateralized mortgage obligations		—		196,211		—		196,211
U.S. government agency securities		172,793		—		—		172,793
SBA loan pools securities		—		114,117		—		114,117
Municipal bonds-tax exempt		—		3,711		718		4,429
Municipal bonds-taxable		—		16,660		—		16,660
Corporate bonds		—		16,940		—		16,940
U.S. treasury securities		163		—		—		163
Other securities		—		22,704		—		22,704
Equity security		—		—		450		450
Total securities available for sale	$	172,956	$	954,500	$	1,168	$	1,128,624
December 31, 2013
Assets:
Securities available for sale:
Mortgage-backed securities	$	—	$	217,059	$	—	$	217,059
Collateralized mortgage obligations		—		127,693		—		127,693
U.S. government agency securities		83,536		—		—		83,536
SBA loan pools securities		—		12,629		—		12,629
Municipal bonds-tax exempt		—		13,189		748		13,937
Municipal bonds-taxable		—		32,354		—		32,354
Corporate bonds		—		20,835		—		20,835
U.S. treasury securities		19,997		—		—		19,997
Other securities		—		2,886		—		2,886
Total securities available for sale	$	103,533	$	426,645	$	748	$	530,926
Liabilities:
Stock warrants	$	—	$	—	$	2	$	2

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The table below presents a reconciliation and income statement classification of gains and losses for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2014:

	Beginning Balance as of January 1, 2014		Purchases, Issuances and Settlement			Realized Gains or Losses in Earnings		Unrealized Gains or Losses in Other Comprehensive Income			Ending Balance as of September 30, 2014
	(In thousands)
Assets:
Municipal bonds-tax exempt (1)	$	748	$	—		$	—	$	(30	)	$	718
Equity securities (2)	$	—	$	450		$	—	$	—		$	450
Liabilities:
Stock warrants (3)	$	2	$	(2	)	$	—	$	—		$	—

⁽¹⁾  Reflects a zero coupon tax credit municipal bond. As the Company was not able to obtain a price from independent external pricing service providers, the discounted cash flow method was used to determine its fair value. The bond carried a par value of $700,000 and an amortized value of $700,000 with a remaining life of 0.48 year at September 30, 2014.

⁽²⁾  Reflects two equity securities that are not actively traded. The fair value of one equity security with a fair value of $250,000 was computed using valuation multiples (price to book and price to earnings) derived from market transactions for comparable companies. The other equity security with a fair value of $200,000 was computed using valuation multiples (price to book and price to earnings) derived from 1) market transactions for comparable companies, and 2) publicly-traded comparable companies. In addition to these approaches, the Company considered a discounted cash flow approach, which cash flows, calculated based on a redemption or liquidation policy of the equity issuer, are discounted back to the present using a 10.5% discount rate.

⁽³⁾  Reflects warrants for our common stock issued in connection with services Cappello Capital Corp. provided to us as a placement agent in connection with our best efforts public offering and as our financial adviser in connection with our completed rights offering. The warrants were immediately exercisable when issued at an exercise price of $9.60 per share of our common stock and expire on October 14, 2015. There were no outstanding stock warrants as of September 30, 2014. See “Note 9 – Stockholders’ Equity” for more details.

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

As of September 30, 2014 and December 31, 2013, assets and liabilities measured at fair value on a non-recurring basis are as follows:

	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs With No Active Market With Identical Characteristics		Significant Unobservable Inputs		Loss During the   Nine Months Ended   September 30, 2014
	(In thousands)
September 30, 2014
Assets:
Impaired loans (excluding PCI loans) (1)	$	—	$	34,373	$	2,199	$	2,905
Other real estate owned (2)		—		24,781		—		—

	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs With No Active Market With Identical Characteristics		Significant Unobservable Inputs		Loss During the Twelve Months Ended December 31, 2013
	(In thousands)
December 31, 2013
Assets:
Impaired loans (3)	$	—	$	36,254	$	1,738	$	2,431
Other real estate owned (4)		—		756		—		10

⁽¹⁾  Include real estate loans of $33.6 million, commercial and industrial loans of $1.2 million, and consumer loans of $1.8 million.

⁽²⁾  Includes properties from the foreclosure of real estate loans of $24.8 million of which $22.3 million was acquired from CBI.

⁽³⁾  Include real estate loans of $32.2 million, commercial and industrial loans of $2.8 million, and consumer loans of $1.3 million.

⁽⁴⁾  Includes properties from the foreclosure of real estate loans of $756,000.

FASB ASC 825 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 at fair value on a recurring basis or non-recurring basis are discussed above.

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

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The estimated fair values of financial instruments were as follows:

	September 30, 2014
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	197,016	$	197,016	$	—	$	—
Securities available for sale		1,128,624		172,956		954,500		1,168
Loans receivable, net of allowance for loan losses		2,628,091		—		—		2,686,838
Loans held for sale		7,757		—		7,757		—
Accrued interest receivable		9,880		9,880		—		—
Servicing assets		7,844		—		—		7,844
Investment in federal home loan bank stock		17,579		17,579		—		—
Investment in federal reserve bank stock		12,273		12,273		—		—
Financial liabilities:
Noninterest-bearing deposits		1,029,343		—		1,029,343		—
Interest-bearing deposits		2,568,811		—		—		2,565,504
Borrowings		128,509		—		—		128,509
Accrued interest payable		3,030		3,030		—		—
Off-balance sheet items:
Commitments to extend credit		327,381		—		—		327,381
Standby letters of credit		9,140		—		—		9,140

	December 31, 2013
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	179,357	$	179,357	$	—	$	—
Securities available for sale		530,926		103,533		426,645		748
Loans receivable, net of allowance for loan losses		2,177,498		—		—		2,204,069
Loans held for sale		—		—		—		—
Accrued interest receivable		7,055		7,055		—		—
Servicing assets		6,833		—		—		6,833
Investment in federal home loan bank stock		14,060		14,060		—		—
Investment in federal reserve bank stock		11,196		11,196		—		—
Financial liabilities:
Noninterest-bearing deposits		819,015		—		819,015		—
Interest-bearing deposits		1,693,310		—		—		1,693,739
Borrowings		127,546		—		—		247,249
Accrued interest payable		3,366		3,366		—		—
Off-balance sheet items:
Commitments to extend credit		246,161		—		—		246,161
Standby letters of credit		8,926		—		—		8,926

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

Investment securities – The fair value of investment securities, consisting of investment 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, 2 and 3).

        Loans receivable, net of allowance for loan losses – Loans receivable include Non-PCI loans, PCI loans and Non-PCI impaired loans. The fair value of Non-PCI loans receivable is estimated based on the discounted cash flow approach. The discount rate was derived from the associated yield curve plus spreads and reflects the offering rates offered by the Bank for loans with similar financial characteristics. Yield curves are constructed by product type using the Bank’s loan pricing model for like-quality credits. The discount rates used in the Bank’s model represent the rates the Bank would offer to current borrowers for like-quality credits. These rates could be different from what other financial institutions could offer for these loans. No adjustments have been made for changes in credit within the loan portfolio. It is our opinion that the allowance for loan losses relating to performing and nonperforming loans results in a fair valuation of such loans. Additionally, the fair value of our loans may differ significantly from the values that would have been used had a ready market existed for such loans and may differ materially from the values that we may ultimately realize (Level 3).

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The fair value of PCI loans receivable is estimated based on discounted expected cash flows. Increases in expected cash flows and improvements in the timing of cash flows over those previously estimated increase the amount of accretable yield and are recognized as an increase in yield and interest income prospectively. Decreases in the amount and delays in the timing of expected cash flows compared to those previously estimated decrease the amount of accretable yield and usually result in a provision for loan losses and the establishment of an allowance for loan losses (Level 3).

The fair value of impaired loans, excluding PCI 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 impaired loans are recorded based on the current appraised value of the collateral (Level 3).

Loans held for sale – Loans held for sale are carried at the lower of aggregate cost or fair market value, as determined based upon quotes, bids or sales contract prices, or as may be assessed based upon the fair value of the collateral which is obtained from recent real estate appraisals (Level 2). Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustment is typically significant and results in Level 3 classification of the inputs for determining fair value.

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

Servicing assets – Servicing asset is carried at its implied fair value. The fair value of the servicing asset is estimated by discounting future cash flows using market-based discount rates and prepayments speeds. The discount rate is based on the current U.S. Treasury yield curve, as published by the Department of the Treasury, plus a spread for the marketplace risk associated with these assets. (Level 3)

Investment in Federal Home Loan Bank and Federal Reserve Bank stock – The carrying amounts of investment in FHLB and FRB stock approximate fair value as such stock may be resold to the issuer at carrying 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 – 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 3).

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

Stock warrants – The fair value of stock warrants is determined by the Black-Scholes option pricing model. The expected stock volatility is based on historical volatility of our common stock over expected term of the warrants. The expected life assumption is based on the contract term and dividend yield is based on the Company’s annual dividend divided by its current share price. The risk free rate used for the warrants is equal to the zero coupon rate in effect at the end of the measurement period (Level 3).

Commitments to extend credit and standby letters of credit – The fair values of commitments to extend credit and standby letters of credit are based upon the difference between the current value of similar loans and the price at which the Bank has committed to make the loans (Level 3).

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Note 13 — Share-Based Compensation

Share-Based Compensation Expense

For the three months ended September 30, 2014 and 2013, share-based compensation expense was $695,000 and $197,000, respectively, and the related tax benefits on non-qualified stock options were $317,000 and $0, respectively. For the nine months ended September 30, 2014 and 2013, share-based compensation expense was $1.7 million and $387,000, respectively, and the related tax benefits on non-qualified stock options were $500,000 and $32,000, respectively.

Unrecognized Share-Based Compensation Expense

As of September 30, 2014, unrecognized share-based compensation expense was as follows:

	Unrecognized Expense		Average Expected Recognition Period
	(In thousands)
Stock option awards	$	1,490		2.2 years
Restricted stock awards		2,822		2.6 years
Total unrecognized share-based compensation expense	$	4,312		2.4 years

The table below provides stock option information for the three months ended September 30, 2014:

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value of In-the- Money Options
	(In thousands, except share and per share data)
Options outstanding at beginning of period		581,913		$	24.32		8.6 years	$	2,168	(1)
Options granted		28,000		$	20.57		10.0 years
Options exercised		(687	)	$	12.54		8.2 years
Options forfeited		(1,876	)	$	12.54		8.2 years
Options expired		(2,875	)	$	109.71		3.3 years
Options outstanding at end of period		604,475		$	23.79		8.5 years	$	2,188	(2)
Options exercisable at end of period		194,757		$	37.21		7.2 years	$	871	(2)

⁽¹⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $21.08 as of June 30, 2014, over the exercise price, multiplied by the number of options.

⁽²⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $20.16 as of September 30, 2014, over the exercise price, multiplied by the number of options.

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The table below provides stock option information for the nine months ended September 30, 2014:

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value of In-the- Money Options
	(In thousands, except share and per share data)
Options outstanding at beginning of period		546,595		$	28.09		8.4 years	$	3,384	(1)
Options granted		133,000		$	21.60		9.7 years
Options exercised		(34,382	)	$	12.54		7.9 years
Options forfeited		(9,751	)	$	12.54		8.2 years
Options expired		(30,987	)	$	106.26		.5 years
Options outstanding at end of period		604,475		$	23.79		8.5 years	$	2,188	(2)
Options exercisable at end of period		194,757		$	37.21		7.2 years	$	871	(2)

⁽¹⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $21.89 as of December 31, 2013, over the exercise price, multiplied by the number of options.

⁽²⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $20.16 as of September 30, 2014, over the exercise price, multiplied by the number of options.

There were 687 and 34,382 stock options exercised during the three and nine months ended September 30, 2014, compared to 38,437 and 40,678 stock options exercised during the same periods in 2013.

Restricted Stock Awards

Restricted stock awards granted under the 2013 Equity Compensation Plan, which replaced the 2007 Equity Compensation Plan, generally become fully vested after three to five years of continued employment from the date of grant. Hanmi Financial becomes entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted stock awards when the restrictions are released and the shares are issued. Restricted stock awards are forfeited if officers and employees terminate prior to the lapsing of restrictions. Forfeitures of restricted stock awards are treated as cancelled shares.

The table below provides information for restricted stock awards for the three and nine months ended September 30, 2014:

	Three Months Ended					Nine Months Ended
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share		Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Restricted stock at beginning of period		166,332		$	18.46		116,082		$	16.43
Restricted stock granted		32,720		$	20.86		99,068		$	21.93
Restricted stock vested		(36,331	)	$	16.46		(51,429	)	$	17.53
Restricted stock forfeited		—		$	—		(1,000	)	$	22.25
Restricted stock at end of period		162,721		$	19.39		162,721		$	19.39

Note 14 — 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 stock options or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in earnings, excluding common shares in treasury. Unvested restricted stock is excluded from the calculation of weighted-average common shares for basic EPS. For diluted EPS, weighted-average common shares include the impact of restricted stock under the treasury method.

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

	2014								2013
	(Numerator)			(Denominator)					(Numerator)		(Denominator)
	Net Income			Weighted- Average Shares		Per Share Amount			Net Income		Weighted- Average Shares		Per Share Amount
	(In thousands, except share and per share data)
Three months ended September 30:
Basic EPS
Income from continuing operations, net of taxes	$	13,264			31,708,581	$	0.42		$	10,315		31,621,049	$	0.33
Income from discontinued operations, net of taxes		—			31,708,581		—			70		31,621,049		—
Basic EPS	$	13,264			31,708,581	$	0.42		$	10,385		31,621,049	$	0.33
Effect of dilutive securities - options, warrants and unvested restricted stock		—			292,838		—			—		111,955		—
Diluted EPS
Income from continuing operations, net of taxes	$	13,264			32,001,419	$	0.41		$	10,315		31,733,004	$	0.33
Income from discontinued operations, net of taxes		—			32,001,419		—			70		31,733,004		—
Diluted EPS	$	13,264			32,001,419	$	0.41		$	10,385		31,733,004	$	0.33
Nine months ended September 30:
Basic EPS
Income from continuing operations, net of taxes	$	35,764			31,683,288	$	1.13		$	29,769		31,583,897	$	0.94
(Loss) income from discontinued operations, net of taxes		(444	)		31,683,288		(0.02	)		161		31,583,897		0.01
Basic EPS	$	35,320			31,683,288	$	1.11		$	29,930		31,583,897	$	0.95
Effect of dilutive securities - options, warrants and unvested restricted stock		—			284,588		—			—		68,898		—
Diluted EPS
Income from continuing operations, net of taxes	$	35,764			31,967,876	$	1.12		$	29,769		31,652,795	$	0.94
(Loss) income from discontinued operations, net of taxes		(444	)		31,967,876		(0.02	)		161		31,652,795		0.01
Diluted EPS	$	35,320			31,967,876	$	1.10		$	29,930		31,652,795	$	0.95

For the three months ended September 30, 2014 and 2013, stock options totaling 136,850 and 74,275, respectively, were not included in the computation of diluted EPS because their effect would be anti-dilutive. For the nine months ended September 30, 2014 and 2013, stock options totaling 86,850 and 74,275, respectively, were not included in the computation of diluted EPS because their effect would be anti-dilutive.

Note 15 — Off-Balance Sheet Commitments

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

The Bank’s exposure to credit losses in the event of non-performance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for extending loan facilities to customers. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, was based on management’s credit evaluation of the counterparty.

Collateral held varies but may include accounts receivable, inventory, premises and equipment, and income-producing or borrower-occupied properties. The following table shows the distribution of undisbursed loan commitments as of the dates indicated:

	September 30, 2014		December 31, 2013
	(In thousands)
Commitments to extend credit	$	327,381	$	246,161
Standby letters of credit		9,140		8,926
Commercial letters of credit		3,877		4,179
Unused credit card lines		—		12,223
Total undisbursed loan commitments	$	340,398	$	271,489

44

Note 16 — Liquidity

Hanmi Financial

Management believes that Hanmi Financial, on a stand-alone basis, has adequate liquid assets to meet its operating cash needs through September 30, 2015.

Hanmi Bank

The principal objective of our liquidity management program is to maintain the Bank’s ability to meet the day-to-day cash flow requirements of our customers who either wish to withdraw funds or to draw upon credit facilities to meet their cash needs. Management believes that the Bank, on a stand-alone basis, has adequate liquid assets to meet its current obligations. The Bank’s primary funding source will continue to be deposits originating from its branch platform. The Bank’s wholesale funds historically consisted of FHLB advances and brokered deposits. As of September 30, 2014, the Bank had $99,000 brokered deposits assumed from the CBI acquisition.

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 percent of its assets. As of September 30, 2014, the total borrowing capacity available based on pledged collateral and the remaining available borrowing capacity were $669.2 million and $559.2 million, respectively, compared to $343.3 million and $215.8 million, respectively, as of December 31, 2013. The Bank’s FHLB borrowings as of September 30, 2014 and December 31, 2013 totaled $110.0 million and $127.5 million, respectively, which represented 2.60 percent and 4.17 percent of assets as of September 30, 2014 and December 31, 2013, 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 advance rates for qualifying collateral may be adjusted upwards or downwards by the FHLB 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 and investment 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 $65.1 million from the Federal Reserve Discount Window, to which the Bank pledged loans with a carrying value of $89.4 million, and had no borrowings as of September 30, 2014. In December 2012, the Bank established a line of credit with Raymond James & Associates, Inc. for repurchase agreements up to $100.0 million. The Bank established unsecured federal funds lines of credit totaling $95.0 million from three financial institutions in June 2014 primarily to support short-term liquidity.

The Bank has Contingency Funding Plans (“CFPs”) designed to ensure that liquidity sources are sufficient to meet its ongoing obligations and commitments, particularly in the event of a liquidity contraction. The CFPs are designed to examine and quantify its liquidity under various “stress” scenarios. Furthermore, the CFPs provide a framework for management and other critical personnel to follow in the event of a liquidity contraction or in anticipation of such an event. The CFPs address authority for activation and decision making, liquidity options and the responsibilities of key departments in the event of a liquidity contraction.

Note 17 — Segment Reporting

Through our branch network and lending units, we provide a broad range of financial services to individuals and companies. These services include demand, time and savings deposits; and commercial and industrial, real estate and consumer lending. While our chief decision makers monitor the revenue streams of our various products and services, operations are managed and financial performance is evaluated on a company-wide basis. Accordingly, we consider all of our operations to be aggregated in one reportable operating segment.

Note 18 — Subsequent Events

Management has evaluated subsequent events through the date of issuance of the financial data included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014, or would be required to be recognized in the Consolidated Financial Statements (Unaudited) as of September 30, 2014.

45

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

The following is management’s discussion and analysis of the major factors that influenced our results of operations and financial condition as of and for the three and nine months ended September 30, 2014. This analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 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 quarterly period ended September 30, 2014 (this “Report”).

Forward-Looking Statements

Some of the statements under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Report constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements in this Report other than statements of historical fact are “forward –looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs, plans and objectives of management for future operations, and other similar forecasts and statements of expectation and statements of assumption 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. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statement.

For a discussion of some of the other factors that might cause such a difference, see the discussion contained in this Report under the heading “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Also see “Item 1A. Risk Factors,” “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Interest Rate Risk Management” and “Capital Resources and Liquidity” in our 2013 Annual Report on Form 10-K, as well as other factors we identify from time to time in our periodic reports, including our Quarterly Reports on Form 10-Q, filed pursuant to the Exchange Act. 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. In addition to our significant accounting policies described in the “Notes to Consolidated Financial Statements” in our 2013 Annual Report on Form 10-K, during the third quarter of 2014, we adopted ASC 805, “Business Combinations,” and ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” due to the acquisition of CBI. See “Note 2 —Acquisition” and “Note 6 — Loans” for accounting policies regarding purchased loans.

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 2013 Annual Report on Form 10-K. We use estimates and assumptions based on historical experience and other factors that we believe to be reasonable under the circumstances. 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 Hanmi Financial’s Board of Directors.

46

Selected Financial Data

The following tables set forth certain selected financial data for the periods indicated:

	As of and For the
	Three Months Ended September 30,						Nine Months Ended September 30,
	2014 (14)			2013			2014 (14)			2013
	(In thousands, except share and per share data)
Average balances:
Average gross loans, net of deferred loan costs (1)	$	2,498,554		$	2,186,884		$	2,352,069		$	2,142,462
Average investment securities		749,566			414,019			603,771			446,322
Average interest-earning assets		3,315,959			2,644,844			2,999,013			2,665,087
Average assets		3,520,066			2,788,548			3,166,821			2,803,067
Average deposits		2,884,535			2,374,847			2,635,780			2,363,272
Average borrowings		118,436			5,587			71,709			34,308
Average interest-bearing liabilities		2,076,688			1,630,637			1,850,917			1,673,559
Average stockholders’ equity		430,327			394,081			433,854			389,543
Average tangible equity		429,801			392,801			433,297			388,243
Per share data:
Earnings per share - basic (2)	$	0.42		$	0.33		$	1.13		$	0.94
Earnings per share - diluted (2)	$	0.41		$	0.33		$	1.12		$	0.94
Common shares outstanding		31,894,429			31,754,115			31,894,429			31,754,115
Book value per share (3)	$	13.64		$	12.50		$	13.64		$	12.50
Performance ratios:
Return on average assets (2) (4) (5)		1.49	%		1.47	%		1.51	%		1.42	%
Return on average stockholders’ equity (2) (4) (6)		12.23	%		10.38	%		11.02	%		10.22	%
Return on average tangible equity (2) (4) (6)		12.24	%		10.42	%		11.04	%		10.25	%
Efficiency ratio (7)		59.48	%		51.07	%		56.85	%		53.27	%
Net interest spread (8)		3.43	%		3.98	%		3.59	%		3.78	%
Net interest margin (9)		3.67	%		4.28	%		3.86	%		4.08	%
Average stockholders’ equity to average assets		12.22	%		14.13	%		13.70	%		13.90	%
Selected capital ratios: (10)
Total risk-based capital ratio:
Hanmi Financial		16.33	%		19.45	%		16.33	%		19.45	%
Hanmi Bank		16.28	%		18.69	%		16.28	%		18.69	%
Tier 1 risk-based capital ratio:
Hanmi Financial		15.08	%		18.17	%		15.08	%		18.17	%
Hanmi Bank		15.00	%		17.42	%		15.00	%		17.42	%
Tier 1 leverage ratio:
Hanmi Financial		12.80	%		14.68	%		12.80	%		14.68	%
Hanmi Bank		12.81	%		14.07	%		12.81	%		14.07	%
Asset quality ratios:
Nonperforming loans to gross loans (11)		0.90	%		1.05	%		0.90	%		1.05	%
Nonperforming assets to assets (12)		1.15	%		0.81	%		1.15	%		0.81	%
Nonperforming assets to allowance for loan losses		95.35	%		40.02	%		95.35	%		40.02	%
Net loan charge-offs (recoveries) to average gross loans (13)		0.12	%		0.41	%		-0.06	%		0.38	%
Allowance for loan losses to gross loans		1.91	%		2.67	%		1.91	%		2.67	%
Allowance for loan losses to nonperforming loans		213.09	%		253.07	%		213.09	%		253.07	%

⁽¹⁾  Loans are net of deferred fees and related direct costs

⁽²⁾  Calculation based on net income from continuing operations

⁽³⁾  Stockholders’ equity divided by common shares outstanding

⁽⁴⁾  Calculation based on annualized net income

⁽⁵⁾  Net income divided by average assets

⁽⁶⁾  Net income divided by average stockholders’ equity

⁽⁷⁾  Noninterest expenses divided by the sum of net interest income before provision for credit losses and noninterest income

⁽⁸⁾  Average yield earned on interest-earning assets less average rate paid on interest-bearing liabilities. Computed on a tax-equivalent basis using an effective marginal rate of 35 percent

⁽⁹⁾  Net interest income before provision for credit losses divided by average interest-earning assets. Computed on a tax-equivalent basis using an effective marginal rate of 35 percent

⁽¹⁰⁾  The required ratios for a “well-capitalized” institution, as defined by regulations of the Board of Governors of the Federal Reserve System, are 10 percent for the Total Risk-Based Capital Ratio (total capital divided by total risk-weighted assets); 6 percent for the Tier 1 Risk-Based Capital Ratio (Tier 1 capital divided by total risk-weighted assets); and 5 percent for the Tier 1 Leverage Ratio (Tier 1 capital divided by average assets)

⁽¹¹⁾  Nonperforming loans (excluding PCI loans) consist of nonaccrual loans and loans past due 90 days or more and still accruing interest

⁽¹²⁾  Nonperforming assets (excluding PCI loans) consist of nonperforming loans (see footnote (11) above) and other real estate owned

⁽¹³⁾  Calculation based on annualized net loan (recoveries) charge-offs

⁽¹⁴⁾  Bargain purchase gain of $6.6 million is included.

47

Non-GAAP Financial Measures

Tangible Stockholders’ Equity to Tangible Assets Ratio

Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in analyzing Hanmi Financial’s capital strength. Tangible equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi Financial. This disclosure should not be viewed as a substitution for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure as of the dates indicated:

	As of September 30,
	2014			2013
	(In thousands, except share and per share data)
Assets	$	4,228,332		$	2,844,076
Less other intangible assets		(2,179	)		(1,212	)
Tangible assets	$	4,226,153		$	2,842,864
Stockholders’ equity	$	435,194		$	396,895
Less other intangible assets		(2,179	)		(1,212	)
Tangible stockholders’ equity	$	433,015		$	395,683
Stockholders’ equity to assets		10.29	%		13.96	%
Tangible common equity to tangible assets		10.25	%		13.92	%
Common shares outstanding		31,894,429			31,754,115
Tangible common equity per common share	$	13.58		$	12.46

48

Executive Overview

For the third quarter ended September 30, 2014, we recognized net income of $13.3 million, or $0.41 per diluted share, compared to net income of $11.0 million, or $0.33 per diluted share, for the third quarter ended September 30, 2013. Financial highlights include:

• Gross loans increased 13.9 percent to $2.68 billion at September 30,2014 from $2.35 billion at June 30, 2014, with $67.0 million purchased credit impaired (PCI) loans and $2.61 billion loans excluding PCI loans (Non-PCI).

• New loans (excluding loan purchases) were $169.9 million for the third quarter of 2014, representing $54.6 million increase from the prior quarter of 2014.

• Deposits grew 41.4 percent at September 30, 2014 from the prior quarter of 2014, with non-interest bearing deposits up 13.1 percent and representing 28.6 percent of deposits.

• Asset quality in the third quarter of 2014 improved with classified loans (excluding PCI loans) declining 2.5 percent, compared to the prior quarter of 2014 and down 47.5 percent, compared to the same period of 2013. No loan loss provision was recorded for the third quarter of 2014.

• Net income in the third quarter of 2014 increased 20.1 percent to $13.3 million, or $0.41 per diluted share, compared to $11.0 million, or $0.35 per diluted share, in the prior quarter of 2014.

• Net interest margin was 3.67 percent for the third quarter of 2014, down 27 basis points from the prior quarter of 2014.

• A cash dividend of $0.07 per share, representing a 17 percent payout ratio for the third quarter of 2014, was paid on October 10, 2014.

Results of Operations

Acquisition’s Impact on Earnings Performance

The comparability of financial information is affected by our acquisition of CBI on August 31, 2014 ($1.28 billion in assets). The transaction has been accounted for using the acquisition method of accounting and accordingly, the related operating results have been included in the consolidated financial statements from the respective acquisition date,

Net Interest Income

Our primary source of revenue is net interest income, which is the difference between interest and fees 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 our loans are affected principally by changes to interest rates, the demand for such loans, 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 Board.

49

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

	Three Months Ended
	September 30, 2014								September 30, 2013
	Average Balance			Interest Income / Expense		Average Yield / Rate			Average Balance			Interest Income / Expense		Average Yield / Rate
	(In thousands)
Assets
Interest-earning assets:
Gross loans, net of deferred loan costs (1)	$	2,498,554		$	30,499		4.84	%	$	2,186,884		$	29,098		5.28	%
Municipal securities-taxable		16,713			164		3.93	%		43,259			442		4.09	%
Municipal securities-tax exempt (2)		4,441			31		2.77	%		10,088			106		4.21	%
Obligations of other U.S. government agencies		144,177			491		1.36	%		94,350			455		1.93	%
Other debt securities		555,584			2,483		1.79	%		238,264			1,143		1.92	%
Equity securities		28,651			463		6.46	%		28,058			392		5.59	%
Interest-bearing deposits in other banks		67,839			29		0.17	%		43,941			28		0.25	%
Total interest-earning assets		3,315,959			34,160		4.09	%		2,644,844			31,664		4.75	%
Noninterest-earning assets:
Cash and cash equivalents		73,935								66,808
Allowance for loan losses		(58,390	)							(58,991	)
Other assets		188,562								135,887
Total noninterest-earning assets		204,107								143,704
Total assets	$	3,520,066							$	2,788,548
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Savings	$	112,690		$	348		1.23	%	$	115,058		$	454		1.57	%
Money market checking and NOW accounts		652,524			803		0.49	%		546,413			691		0.50	%
Time deposits of $100,000 or more		641,545			1,388		0.86	%		522,664			942		0.72	%
Other time deposits		551,493			739		0.53	%		440,915			1,030		0.93	%
FHLB advances		105,667			37		0.14	%		5,587			36		2.56	%
Other Borrowings		1,247			—		0.00	%		—			—		0.00	%
Rescinded stock obligation		5,297			87		6.52	%		—			—		0.00	%
Subordinated debentures		6,225			73		4.65	%		—			—		0.00	%
Total interest-bearing liabilities		2,076,688			3,475		0.66	%		1,630,637			3,153		0.77	%
Noninterest-bearing liabilities:
Demand deposits		926,283								749,797
Other liabilities		86,768								14,033
Total noninterest-bearing liabilities		1,013,051								763,830
Total liabilities		3,089,739								2,394,467
Stockholders’ equity		430,327								394,081
Total liabilities and stockholders’ equity	$	3,520,066							$	2,788,548
Net interest income				$	30,685							$	28,511
Cost of deposits							0.45	%							0.52	%
Net interest spread (3)							3.43	%							3.98	%
Net interest margin (4)							3.67	%							4.28	%

⁽¹⁾  Loans are net of deferred fees and related direct costs, but exclude the allowance for loan losses. Nonaccrual loans are included in the average loan balance. Loan fees have been included in the calculation of interest income. Loan fees were $212,000 and $205,000 for the three months ended September 30, 2014 and 2013, respectively.

50

⁽²⁾  Computed on a tax-equivalent basis using an effective marginal rate of 35 percent.

⁽³⁾  Represents the average rate earned on interest-earning assets less the average rate paid on interest-bearing liabilities.

⁽⁴⁾  Represents annualized 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 September 30, 2014 vs. Three Months Ended September 30, 2013
	Increases (Decreases) Due to Change In
	Volume			Rate			Total
	(In thousands)
Interest and dividend income:
Gross loans, net of deferred loan costs	$	3,901		$	(2,500	)	$	1,401
Municipal securities-taxable		(261	)		(17	)		(278	)
Municipal securities-tax exempt		(47	)		(28	)		(75	)
Obligations of other U.S. government agencies		195			(159	)		36
Other debt securities		1,424			(84	)		1,340
Equity securities		8			63			71
Interest-bearing deposits in other banks		12			(11	)		1
Total interest and dividend income	$	5,232		$	(2,736	)	$	2,496
Interest expense:
Savings	$	(9	)	$	(97	)	$	(106	)
Money market checking and NOW accounts		128			(16	)		112
Time deposits of $100,000 or more		242			204			446
Other time deposits		216			(507	)		(291	)
FHLB advances		65			(64	)		1
Rescinded stock obligation		87			—			87
Subordinated debentures		73			—			73
Total interest expense	$	802		$	(480	)	$	322
Change in net interest income	$	4,430		$	(2,256	)	$	2,174

Interest income on a tax-equivalent basis increased $2.5 million, or 7.9 percent, to $34.2 million for the three months ended September 30, 2014 from $31.7 million for the same period in 2013. Interest expense increased $322,000, or 10.21 percent, to $3.5 million for the three months ended September 30, 2014 from $3.2 million for the same period in 2013. For the three months ended September 30, 2014 and 2013, net interest income before provision for credit losses on a tax-equivalent basis was $30.7 million and $28.5 million, respectively. The increase in net interest income before provision for credit losses was primarily attributable to growth in average loan balances and investment securities, mainly offset by lower average yields on new and renewing loans. The net interest spread and net interest margin for the three months ended September 30, 2014 were 3.43 percent and 3.67 percent, respectively, compared to 3.98 percent and 4.28 percent, respectively, for the same period in 2013.

Average gross loans increased $312.1 million, or 14.3 percent, to $2.50 billion for the three months ended September 30, 2014 from $2.19 billion for the same period in 2013. Average investment securities increased $335.5 million, or 81.0 percent, to $749.6 million for the three months ended September 30, 2014 from $414.0 million for the same period in 2013. Average interest-earning assets increased $671.1 million, or 25.4 percent, to $3.32 billion for the three months ended September 30, 2014 from $2.64 billion for the same period in 2013. The increase in average interest-earning assets was due mainly to increases in acquired investment securities and loans from CBI. Average interest-bearing liabilities increased $446.1 million to $2.08 billion for the three months ended September 30, 2014, compared to $1.63 billion for the same period in 2013. The increase in average interest-bearing liabilities resulted primarily from $316.4 million increases in deposits assumed in the CBI acquisition.

The average yield on loans decreased to 4.84 percent for the three months ended September 30, 2014 from 5.28 percent for the same period in 2013. The average yield on investment securities decreased to 1.94 percent for the three months ended September 30, 2014 from 2.45 percent for the same period in 2013. The average yield on interest-earning assets decreased 66 basis points to 4.09 percent for the three months ended September 30, 2014 from 4.75 percent for the same period in 2013, due primarily to lower average

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yields on the new and renewing loans and securities acquired from CBI. The average cost on interest-bearing liabilities decreased 11 basis points to 0.66 percent for the three months ended September 30, 2014 from 0.77 percent for the same period in 2013. This decrease was due primarily to decreases in the average rates of deposits.

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The following table shows the average balances of assets, liabilities and stockholders’ equity; the amount of interest income 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.

	Nine Months Ended
	September 30, 2014								September 30, 2013
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
	(In thousands)
Assets
Interest-earning assets:
Gross loans, net of deferred loan fees (1)	$	2,352,069		$	87,044		4.95	%	$	2,142,462		$	83,736		5.23	%
Municipal securities-taxable		22,308			684		4.09	%		45,141			1,350		3.99	%
Municipal securities-tax exempt (2)		7,325			178		3.25	%		11,188			365		4.35	%
Obligations of other U.S. government agencies		107,058			1,297		1.62	%		92,262			1,309		1.89	%
Other debt securities		440,000			6,069		1.84	%		268,699			3,597		1.78	%
Equity securities		27,080			1,275		6.28	%		29,032			1,026		4.71	%
Federal funds sold		4			—		0.00	%		2,079			6		0.39	%
Interest-bearing deposits in other banks		43,169			67		0.21	%		74,224			140		0.25	%
Total interest-earning assets		2,999,013			96,614		4.31	%		2,665,087			91,529		4.59	%
Noninterest-earning assets:
Cash and cash equivalents		73,964								66,542
Allowance for loan losses		(58,031	)							(60,872	)
Other assets		151,875								132,310
Total noninterest-earning assets		167,808								137,980
Total assets	$	3,166,821							$	2,803,067
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Savings	$	114,908		$	1,124		1.31	%	$	114,978		$	1,377		1.60	%
Money market checking and NOW accounts		605,615			2,329		0.51	%		568,490			2,180		0.51	%
Time deposits of $100,000 or more		550,309			3,147		0.76	%		560,999			3,174		0.76	%
Other time deposits		508,376			3,053		0.80	%		394,784			2,645		0.90	%
FHLB advances		67,405			116		0.23	%		5,898			115		2.61	%
Other Borrowings		421			—		0.00	%		—			—		0.00	%
Rescinded stock obligation		1,785			87		6.52	%		—			—		0.00	%
Subordinated debentures		2,098			73		4.65	%		28,410			678		3.19	%
Total interest-bearing liabilities		1,850,917			9,929		0.72	%		1,673,559			10,169		0.81	%
Noninterest-bearing liabilities:
Demand deposits		856,572								724,021
Other liabilities		25,478								15,944
Total noninterest-bearing liabilities		882,050								739,965
Total liabilities		2,732,967								2,413,524
Stockholders’ equity		433,854								389,543
Total liabilities and stockholders’ equity	$	3,166,821							$	2,803,067
Net interest income				$	86,685							$	81,360
Cost of deposits							0.49	%							0.53	%
Net interest spread (3)							3.59	%							3.78	%
Net interest margin (4)							3.86	%							4.08	%

⁽¹⁾  Loans are net of deferred fees and related direct costs, but exclude the allowance for loan losses. Nonaccrual loans are included in the average loan balance. Loan fees have been included in the calculation of interest income. Loan fees were $993,000 and $937,000 for the nine months ended September 30, 2014 and 2013, respectively.

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⁽²⁾  Computed on a tax-equivalent basis using an effective marginal rate of 35 percent.

⁽³⁾  Represents the average rate earned on interest-earning assets less the average rate paid on interest-bearing liabilities.

⁽⁴⁾  Represents annualized 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.

	Nine Months Ended September 30, 2014 vs.
	Six Months Ended September 30, 2013
	Increases (Decreases) Due to Change In
	Volume			Rate			Total
	(In thousands)
Interest and dividend income:
Gross loans, net of deferred loan fees	$	5,996		$	(2,688	)	$	3,308
Municipal securities-taxable		(677	)		11			(666	)
Municipal securities-tax exempt		(107	)		(80	)		(187	)
Obligations of other U.S. government agencies		126			(138	)		(12	)
Other debt securities		2,350			122			2,472
Equity securities		(34	)		283			249
Federal funds sold		(3	)		(3	)		(6	)
Interest-bearing deposits in other banks		(52	)		(21	)		(73	)
Total interest and dividend income	$	7,599		$	(2,514	)	$	5,085
Interest expense:
Savings	$	—		$	(253	)	$	(253	)
Money market checking and NOW accounts		132			17			149
Time deposits of $100,000 or more		(30	)		3			(27	)
Other time deposits		436			(28	)		408
FHLB advances		65			(64	)		1
Rescinded stock obligation		87			—			87
Subordinated debentures		(543	)		(62	)		(605	)
Total interest expense	$	147		$	(387	)	$	(240	)
Change in net interest income	$	7,452		$	(2,127	)	$	5,325

Interest income on a tax-equivalent basis increased $5.1 million, or 5.6 percent, to $96.6 million for the nine months ended September 30, 2014 from $91.5 million for the same period in 2013. Interest expense decreased $240,000, or 2.4 percent, to $9.9 million for the nine months ended September 30, 2014, compared to $10.2 million for the same period in 2013. For the nine months ended September 30, 2014 and 2013, net interest income before provision for credit losses on a tax-equivalent basis was $86.7 million and $81.4 million, respectively. The increase in net interest income before provision for credit losses was primarily attributable to the acquired earning assets from CBI and continuing growth in average loan balances and investment securities, and the elimination of interest payments on trust preferred securities (“TPS”), which were partially offset by lower average yields on new and renewing loans. The net interest spread and net interest margin for the nine months ended September 30, 2014 were 3.59 percent and 3.86 percent, respectively, compared to 3.78 percent and 4.08 percent, respectively, for the same period in 2013.

Average gross loans increased $209.6 million, or 9.8 percent, to $2.35 billion for the nine months ended September 30, 2014 from $2.14 billion for the same period in 2013. Average investment securities increased $157.4 million, or 35.3 percent, to $603.8 million for the nine months ended September 30, 2014 from $446.3 million for the same period in 2013. Average interest-earning assets increased $333.9 million, or 12.5 percent, to $3.00 billion for the nine months ended September 30, 2014 from $2.67 billion for the same period in 2013. The increase in average interest-earning assets was due mainly to increases in purchased investment securities and loans acquired from CBI. Average interest-bearing liabilities increased $177.4 million to $1.85 billion for the nine months ended September 30, 2014, compared to $1.67 billion for the same period in 2013.

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The increase in average interest-bearing liabilities resulted primarily from deposits assumed in the CBI acquisition. The average yield on loans decreased to 4.95 percent for the nine months ended September 30, 2014 from 5.23 percent for the same period in 2013. The average yield on investment securities decreased to 3.15 percent for the nine months ended September 30, 2014 from 3.43 percent for the same period in 2013. The average yield on interest-earning assets decreased 28 basis points to 4.31 percent for the nine months ended September 30, 2014 from 4.59 percent for the same period in 2013, due primarily to lower average yields on new and renewing loans. The average cost on interest-bearing liabilities decreased 9 basis points to 0.72 percent for the nine months ended September 30, 2014 from 0.81 percent for the same period in 2013. This decrease was due primarily to elimination of interest payments on TPS and lower average yield jumbo time deposits.

Provision for Credit Losses

There was no provision for credit losses for the three months ended September 30, 2014 and 2013. For the nine months ended September 30, 2014, a negative provision for credit losses of $7.2 million was recorded due to improvements in historical loss rates and classified loans, compared to zero provision for credit losses for the same period in 2013. Classified loans (excluding PCI loans) decreased 47.5 percent to $45.0 million as of September 30, 2014 from $85.8 million a year ago. For the nine months ended September 30, 2014, recoveries on loans previously charged off increased $1.7 million to $6.7 million from $5.0 million for the same period in 2013, and charge-offs were $5.6 million, compared to $11.1 million for the same period in 2013. See “Nonperforming Assets” and “Allowance for Loan Losses and Allowance for Off-Balance Sheet Items” for further details.

Noninterest Income

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

	Three Months Ended
	September 30,				Increase (Decrease)
	2014		2013		Amount			Percentage
	(In thousands)
Bargain purchase gain, net of deferred taxes	$	6,593	$	—	$	6,593			—
Service charges on deposit accounts		2,883		2,730		153			5.60	%
Remittance fees		459		481		(22	)		-4.57	%
Trade finance fees		314		248		66			26.61	%
Other service charges and fees		380		349		31			8.88	%
Bank-owned life insurance income		225		230		(5	)		-2.17	%
Gain on sales of SBA loans guaranteed portion		1,221		994		227			22.84	%
Net gain on sales of investment securities		67		611		(544	)		-89.03	%
Other operating income		2,179		416		1,763			423.80	%
	$	14,321	$	6,059	$	8,262			136.36	%

For the three months ended September 30, 2014, noninterest income was $14.3 million, an increase of $8.3 million, or 130.4 percent, compared to $6.1 million for the same period in 2013. The increase was primarily attributable to a $6.6 million increase in bargain purchase gain resulting from the acquisition of CBI, a $227,000 increase in gain on sales of SBA loans guaranteed portion and a $807,000 gain recognized in other operating income from the early termination of CBI’s retirement plan, which was offset mainly by a $544,000 decrease in gain on sales of investment securities. Service charges on deposit accounts increased to $2.9 million for the three months ended September 30, 2014, compared with $2.7 million for the same period in 2013. Net gain on sales of SBA loans guaranteed portion, which represent 8.5 percent of total noninterest income for the three months ended September 30, 2014, increased to $1.2 million for the three months ended September 30, 2014, compared to $994,000 for the same period in 2013, due to increases in premiums on sales of SBA loans guaranteed portion.

55

	Nine Months Ended
	September 30,					Increase (Decrease)
	2014		2013			Amount			Percentage
	(In thousands)
Bargain purchase gain, net of deferred taxes	$	6,593	$	—		$	6,593			—
Service charges on deposit accounts		7,924		8,662			(738	)		-8.52	%
Remittance fees		1,388		1,519			(131	)		-8.62	%
Trade finance fees		873		801			72			8.99	%
Other service charges and fees		1,080		1,082			(2	)		-0.18	%
Bank-owned life insurance income		672		693			(21	)		-3.03	%
Gain on sales of SBA loans guaranteed portion		2,267		6,064			(3,797	)		-62.62	%
Net loss on sales of other loans		—		(557	)		557			-100.00	%
Net gain on sales of investment securities		1,852		923			929			100.65	%
Other operating income		2,588		758			1,830			241.42	%
Total noninterest income	$	25,237	$	19,945		$	5,292			26.53	%

For the nine months ended September 30, 2014, noninterest income was $25.2 million, an increase of $5.3 million, or 26.5 percent, compared to $19.9 million for the same period in 2013. The increase was primarily attributable to a $6.6 million increase in bargain purchase gain resulting from the acquisition of CBI, a $929,000 increase in gain on sales of investment securities, and a $807,000 gain recognized in other operating income from the early termination of CBI’s retirement plan, which was offset mainly by decreases in service charges on deposit accounts and gain on sales of SBA loans guaranteed portion. Service charges on deposit accounts, which represent 31.4 percent of total noninterest income for the nine months ended September 30, 2014, decreased to $7.9 million for the nine months ended September 30, 2014, compared with $8.7 million for the same period in 2013, due mainly to decreases in non-sufficient funds and analysis fee charges. Net gain on sales of investment securities, which represent 7.3 percent of total noninterest income increased to $1.9 million for the nine months ended September 30, 2014, compared to $923,000 for the same period in 2013.

Noninterest Expense

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

	Three Months Ended
	September 30,					Increase (Decrease)
	2014		2013			Amount			Percentage
	(In thousands)
Salaries and employee benefits	$	12,847	$	9,101		$	3,746			41.16	%
Occupancy and equipment		3,098		2,561			537			20.97	%
Merger and integration costs		3,415		—			3,415			—
Unconsummated acquisition costs		—		307			(307	)		-100.00	%
Deposit insurance premiums and regulatory assessments		513		308			205			66.56	%
Data processing		1,476		1,146			330			28.80	%
Other real estate owned expense		78		(59	)		137			-232.20	%
Professional fees		1,386		599			787			131.39	%
Directors and officers liability insurance		191		219			(28	)		-12.79	%
Supplies and communications		628		533			95			17.82	%
Advertising and promotion		809		1,039			(230	)		-22.14	%
Loan-related expense		58		91			(33	)		-36.26	%
Amortization of other intangible assets		33		—			33			—
Other operating expenses		2,231		1,791			440			24.57	%
Total noninterest expense	$	26,763	$	17,636		$	9,127			51.75	%

Noninterest expense was $26.8 million for the three months ended September 30, 2014 compared to $17.6 million for the same period of 2013. The increase of $9.1 million, or 51.75 percent, in noninterest expense was attributable mainly to a $3.4 million increase in merger and integration costs and increase in salaries and employee benefits, reflecting the addition of the CBI employees, stock based compensation grants, and normal salary and employee benefits costs escalation.

56

	Nine Months Ended
	September 30,					Increase (Decrease)
	2014		2013			Amount			Percentage
	(In thousands)
Salaries and employee benefits	$	33,386	$	26,126		$	7,260			27.79	%
Occupancy and equipment		7,964		7,532			432			5.74	%
Merger and integration costs		3,572		—			3,572			—
Unconsummated acquisition costs		—		1,331			(1,331	)		-100.00	%
Deposit insurance premiums and regulatory assessments		1,349		1,059			290			27.38	%
Data processing		3,746		3,436			310			9.02	%
Other real estate owned expense		84		(47	)		131			-278.72	%
Professional fees		2,786		4,095			(1,309	)		-31.97	%
Directors and officers liability insurance		574		657			(83	)		-12.63	%
Supplies and communications		1,725		1,593			132			8.29	%
Advertising and promotion		2,142		2,419			(277	)		-11.45	%
Loan-related expense		203		328			(125	)		-38.11	%
Amortization of other intangible assets		33		—			33			—
Other operating expenses		6,031		5,369			662			12.33	%
Total noninterest expense	$	63,595	$	53,898		$	9,697			17.99	%

For the nine months ended September 30, 2014, noninterest expense was $63.6 million, an increase of $9.7 million, or 17.99 percent, compared to $53.9 million for the same period in 2013. The increase was attributable mainly to a $3.6 million increase in merger and integration costs and salaries and employee benefits, reflecting the addition of the CBI employees, stock based compensation grants, and normal compensation escalation. This increase was offset mainly by a $1.3 million decrease in unconsummated acquisition costs and a $1.3 million decrease in professional fees, reflecting lower costs associated with litigations.

Provision for Income Taxes

The Company’s income tax expenses for the continuing operations were $5.0 million for the three months ended September 30, 2014, compared to $6.6 million for the same period in 2013. The effective income tax rate was 27.25 percent for the three months ended September 30, 2014, compared to 38.95 percent for the same period in 2013. For the nine months ended September 30, 2014, income tax expense for the continuing operations were $19.7 million, compared to $17.5 million for the same period in 2013. The effective income tax rate was 35.48 percent, compared to 41.42 percent for the same period in 2013. The decrease in the effective tax rate for the three months ended September 30, 2014 was due mainly to tax rate reduction attributable to the adjustment for the nontaxable bargain purchase gain. The decrease in the effective tax rate for the nine months ended September 30, 2014, as compared to the same period in 2013, was due mainly to tax rate reduction attributable to the adjustment for the bargain purchase gain, a $400,000 deferred tax benefit generated from the sale of the insurance businesses and tax benefits to be realized from investments in low income tax credit funds, offset by the expiration of the California EZ net interest deduction and EZ hiring credits.

Financial Condition

Investment Portfolio

Investment securities are classified as held to maturity or available for sale in accordance with GAAP. Those securities that we have the ability and the intent to hold to maturity are classified as “held to maturity.” All other securities are classified as “available for sale.” There were no trading or held-to-maturity securities as of September 30, 2014 and December 31, 2013. Securities classified as held to maturity are stated at cost, adjusted for amortization of premiums and accretion of discounts, and available-for-sale securities are stated at fair value. The composition of our investment portfolio reflects our investment strategy of providing a relatively stable source of interest income while maintaining an appropriate level of liquidity. The investment portfolio also provides a source of liquidity by pledging as collateral or through repurchase agreement and collateral for certain public funds deposits.

57

As of September 30, 2014, the investment portfolio was composed primarily of mortgage-backed securities, collateralized mortgage obligations and U.S. government agency securities. Investment securities available for sale were 100 percent of the investment portfolio as of September 30, 2014 and December 31, 2013. Most of the securities carried fixed interest rates. Other than holdings of U.S. government agency securities, there were no investments in securities of any one issuer exceeding 10 percent of stockholders’ equity as of September 30, 2014 and December 31, 2013.

The following table summarizes the amortized cost, estimated fair value and unrealized gain (loss) on investment securities as of the dates indicated:

	September 30, 2014							December 31, 2013
			Estimated		Unrealized					Estimated		Unrealized
	Amortized		Fair		Gain			Amortized		Fair		Gain
	Cost		Value		(Loss)			Cost		Value		(Loss)
	(In thousands)
Securities available for sale:
Mortgage-backed securities (1)	$	588,638	$	584,157	$	(4,481	)	$	222,768	$	217,059	$	(5,709	)
Collateralized mortgage obligations (1)		197,784		196,211		(1,573	)		130,636		127,693		(2,943	)
U.S. government agency securities		176,449		172,793		(3,656	)		90,852		83,536		(7,316	)
SBA loan pool securities		114,753		114,117		(636	)		13,857		13,937		80
Municipal bonds-tax exempt		4,335		4,429		94			33,361		32,354		(1,007	)
Municipal bonds-taxable		16,666		16,660		(6	)		21,013		20,835		(178	)
Corporate bonds		17,018		16,940		(78	)		19,998		19,997		(1	)
U.S. treasury securities		164		163		(1	)		13,598		12,629		(969	)
Other securities		22,916		22,704		(212	)		3,030		2,886		(144	)
Equity security		450		450		—			—		—		—
Total securities available for sale:	$	1,139,173	$	1,128,624	$	(10,549	)	$	549,113	$	530,926	$	(18,187	)

⁽¹⁾  Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities.

As of September 30, 2014, securities available for sale increased 112.6 percent to $1.13 billion, compared to $530.9 million as of December 31, 2013, due mainly to a $664.5 investment securities acquired from CBI. As of September 30, 2014, securities available for sale had a net unrealized loss of $10.5 million, comprised of $686,000 of unrealized gains and $11.2 million of unrealized losses. As of December 31, 2013, securities available for sale had a net unrealized loss of $18.2 million, comprised of $782,000 of unrealized gains and $19.0 million of unrealized losses.

The following table summarizes the contractual maturity schedule for investment securities, at amortized cost, and their weighted-average yield as of September 30, 2014:

						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
											(In thousands)
Securities available for sale:
Mortgage-backed securities	$	—		—		$	2,835		0.31	%	$	191,979		2.03	%	$	393,824		1.93	%	$	588,638		1.95	%
Collateralized mortgage obligations		165		2.56	%		11,539		0.88	%		93,559		1.93	%		92,521		1.91	%		197,784		1.86	%
U.S. government agency securities		15,002		0.10	%		54,598		1.46	%		94,862		2.00	%		11,987		2.03	%		176,449		1.67	%
SBA loan pool securities		—		—			—		—			30,328		0.38	%		84,425		1.51	%		114,753		1.21	%
Municipal bonds-tax exempt (1)		700		0.00	%		722		2.82	%		2,413		2.77	%		500		6.92	%		4,335		2.81	%
Municipal bonds-taxable		—		—			1,131		3.27	%		12,142		3.98	%		3,393		3.90	%		16,666		3.92	%
Corporate bonds		—		—			17,018		1.02	%		—		—			—		—			17,018		1.02	%
U.S. treasury securities		—		—			164		1.19	%		—		—			—		—			164		1.19	%
Other securities		—		—			—		—			—		—			22,916		2.19	%		22,916		2.19	%
Equity security		—		—			—		—			—		—			450		0.00	%		450		0.00	%
Total securities available for sale:	$	15,867		0.12	%	$	88,007		1.29	%	$	425,283		1.94	%	$	610,016		1.89	%	$	1,139,173		1.84	%

⁽¹⁾  The yield on municipal bonds has been computed on a federal tax-equivalent basis of 35 percent and a zero coupon tax credit municipal bond of $700,000 matures within one year.

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Loan Portfolio

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

	September 30, 2014
				Acquired		Acquired		Acquired					December 31,			Increase (Decrease)
	Legacy Loans			Non-PCI Loans		PCI Loans		Loan Total		Total			2013			Amount			Percentage
								(In thousands)
Real estate loans:
Commercial property
Retail	$	601,749		$	34,112	$	15,940	$	50,052	$	651,801		$	543,619		$	108,182			19.9	%
Hotel/Motel		361,102			91,303		14,206		105,509		466,611			322,927			143,684			44.5	%
Gas station		276,469			63,917		18,069		81,986		358,455			292,557			65,898			22.5	%
Other		789,249			16,447		15,715		32,162		821,411			731,617			89,794			12.3	%
Construction		3,595			551		—		551		4,146			—			4,146			NM
Residential property		103,671			2,373		2,686		5,059		108,730			79,078			29,652			37.5	%
Total real estate loans		2,135,835			208,703		66,616		275,319		2,411,154			1,969,798			441,356			22.4	%
Commercial and industrial loans:
Commercial term		113,363			5,812		350		6,162		119,525			124,391			(4,866	)		-3.9	%
Commercial lines of credit		74,939			307		—		307		75,246			71,042			4,204			5.9	%
International loans		41,127			—		—		—		41,127			36,353			4,774			13.1	%
Total commercial and industrial loans		229,429			6,119		350		6,469		235,898			231,786			4,112			1.8	%
Consumer loans (1)		27,777			1,072		58		1,130		28,907			32,505			(3,598	)		-11.1	%
Total gross loans		2,393,041			215,894		67,024		282,918		2,675,959			2,234,089			441,870			19.8	%
Allowance for loans losses		(51,179	)		—		—		—		(51,179	)		(57,555	)		6,376			-11.1	%
Deferred loan costs		3,311			—		—		—		3,311			964			2,347			243.5	%
Loans receivable, net	$	2,345,173		$	215,894	$	67,024	$	282,918	$	2,628,091		$	2,177,498		$	450,593			20.7	%

⁽¹⁾  Consumer loans include home equity lines of credit.

As of September 30, 2014 and December 31, 2013, loans receivable, net of deferred loan costs and allowance for loan losses, totaled $2.63 billion and $2.18 billion, respectively, representing an increase of $450.6 million, or 20.7 percent. Gross loans increased by $441.9 million, or 19.8 percent, to $2.68 billion as of September 30, 2014, from $2.23 billion as of December 31, 2013. The increase was mainly attributable to increases in purchased loan of $282.9 million from CBI and new real estate loans of $166.0 million.

During the nine months ended September 30, 2014, total loan disbursement consisted of $335.0 million in commercial real estate loans, $83.4 million in commercial and industrial loans, $47.0 million in SBA loans and $36.6 million in consumer loans. The increase was offset by $206.3 million of pay-offs, $103.9 million of other net amortization, $19.5 million of transfers to loans held for sale and $5.6 million of gross charge-offs.

As of September 30, 2014, our loan portfolio included the following concentrations of loans to one type of industry that were greater than 10 percent of gross loans outstanding:

			Percentage of
	Balance as of		Gross Loans
Industry	September 30, 2014		Outstanding
	(In thousands)
Lessor of nonresidential buildings	$	656,356		24.5	%
Accommodation	$	475,495		17.7	%
Gas station	$	360,764		13.4	%

There was no other concentration of loans to any one type of industry exceeding 10.0 percent of gross loans outstanding.

Nonperforming Assets

Nonperforming loans (excluding PCI loans) consist of loans on nonaccrual status and loans 90 days or more past due and still accruing interest. Nonperforming assets consist of nonperforming loans and other real estate owned (“OREO”). Non-PCI 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 management believes 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 an asset 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 assets may be restored to accrual status when principal and

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interest become current and full repayment is expected. Interest income is recognized on the accrual basis for impaired loans not meeting the criteria for nonaccrual. OREO consists of properties acquired by foreclosure or similar means that management intends to offer for sale.

Except for nonperforming loans set forth below, management is not aware of any loans as of September 30, 2014 and December 31, 2013 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 the loan being designated as nonperforming at some future date. Management cannot, however, predict the extent to which a deterioration in general economic conditions, real estate values, increases in general rates of interest, or changes in the financial condition or business of borrower may adversely affect a borrower’s ability to pay.

The following table provides information with respect to the components of nonperforming assets (excluding PCI loans) as of the dates indicated:

	September 30,			December 31,			Increase (Decrease)
	2014			2013			Amount			Percentage
				(In thousands)
Nonperforming Non-PCI loans:
Real estate loans:
Commercial property
Retail	$	2,062		$	2,946		$	(884	)		-30.0	%
Hotel/Motel		3,051			5,200			(2,149	)		-41.3	%
Gas station		5,208			2,492			2,716			109.0	%
Other		3,674			4,808			(1,134	)		-23.6	%
Residential property		1,516			1,365			151			11.1	%
Commercial and industrial loans:
Commercial term		6,060			7,146			(1,086	)		-15.2	%
Commercial lines of credit		674			423			251			59.3	%
Consumer loans		1,758			1,497			261			17.4	%
Total nonperforming NON-PCI loans		24,003			25,877			(1,874	)		-7.2	%
Loans 90 days or more past due and still accruing		15			—			—			—
Total nonperforming Non-PCI loans (1)		24,018			25,877			(1,874	)		-7.2	%
Other real estate owned		24,781			—			24,781			NM
Total nonperforming assets	$	48,799		$	25,877		$	22,907			88.5	%
Nonperforming loans as a percentage of gross loans		0.90	%		1.16	%
Nonperforming assets as a percentage of assets		1.15	%		0.85	%
Total debt restructured performing loans	$	15,222		$	19,417

⁽¹⁾  Includes nonperforming troubled debt restructured loans of $11.2 million and $10.5 million as of September 30, 2014 and December 31, 2013, respectively.

Nonaccrual Non-PCI loans totaled $24.0 million as of September 30, 2014, compared to $25.9 million as of December 31, 2013, representing a 6.7 percent decrease. Delinquent loans (defined as 30 days or more past due) were $14.9 million as of September 30, 2014, compared to $16.3 million as of December 31, 2013, representing an 8.6 percent decrease. As of September 30, 2014, delinquent loans of $11.7 million were included in nonperforming loans. The $12.2 million of delinquent loans as of December 31, 2013 was included in nonperforming loans. During the nine months ended September 30, 2014, loans totaling $8.5 million were placed on nonaccrual status. The additions to nonaccrual loans were offset by $4.2 million in principal paydowns and payoffs, $3.3 million in charge-offs and $1.9 million in upgrades to accrual.

The ratio of nonperforming loans to gross loans decreased to 0.90 percent at September 30, 2014 from 1.16 percent at December 31, 2013. Of the $24.0 million nonperforming Non-PCI loans, approximately $20.5 million were impaired based on the definition contained in FASB ASC 310, Receivables, which resulted in aggregate impairment reserve of $3.4 million as of September 30, 2014. The allowance for collateral-dependent loans is calculated as the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals less estimated costs to sell. The allowance for collateral-dependent loans varies from loan to loan based on the collateral coverage of the loan at the time of designation as nonperforming. We continue to monitor the collateral coverage, based on recent appraisals, on these loans on a quarterly basis and adjust the allowance accordingly.

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As of September 30, 2014, OREO consisted of forty properties, of which $20.2 million and $4.6 million were commercial and residential properties, respectively, with a combined carrying value of $24.8 million and no valuation adjustment. Of $24.8 million, $22.3 million was OREOs assumed in the CBI acquisition. As of December 31, 2013, there were three OREOs with a combined carrying value of $756,000 and a valuation adjustment of $56,000.

Impaired Loans

We evaluate loan impairment in accordance with applicable GAAP. Loans are considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement, including scheduled interest payments. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as an expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent, less costs to sell. If the measure of the impaired loan is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses or, alternatively, a specific allocation will be established. Additionally, impaired loans are specifically excluded from the quarterly migration analysis when determining the amount of the allowance for loan losses required for the period.

The following table provides information on impaired loans (excluding PCI loans) as of the dates indicated:

	September 30, 2014					December 31, 2013
	Recorded Investment		Percentage			Recorded Investment		Percentage
	(In thousands)
Real estate loans:
Commercial property
Retail	$	4,443		9.0	%	$	6,244		11.8	%
Hotel/Motel		4,042		8.2	%		6,200		11.7	%
Gas station		14,152		28.7	%		9,389		17.7	%
Other		9,856		20.0	%		11,451		21.6	%
Residential property		3,161		6.4	%		2,678		5.0	%
Commercial and industrial loans:
Commercial term		7,958		16.1	%		13,834		26.1	%
Commercial lines of credit		2,874		5.8	%		614		1.2	%
International loans		1,138		2.3	%		1,087		2.0	%
Consumer loans		1,758		3.6	%		1,569		3.0	%
Total Non-PCI loans	$	49,382		100.0	%	$	53,066		100.0	%

Total impaired loans decreased by $6.3 million, or 11.8 percent, to $46.8 million as of September 30, 2014, as compared to $53.1 million at December 31, 2013. Accordingly, specific reserve allocations associated with impaired loans decreased by $684,000, or 10.6 percent, to $5.8 million as of September 30, 2014, as compared to $6.5 million as of December 31, 2013.

During the three months ended September 30, 2014 and 2013, interest income that would have been recognized had impaired loans performed in accordance with their original terms totaled both $1.1 million. Of these amounts, actual interest recognized on impaired loans was $796,000 and $900,000 for the three months ended September 30, 2014 and 2013, respectively. During the nine months ended September 30, 2014 and 2013, interest income that would have been recognized had impaired loans performed in accordance with their original terms totaled $3.5 million and $3.2 million, respectively. Of these amounts, actual interest recognized on impaired loans was $2.3 million and $2.7 million for the nine months ended September 30, 2014 and 2013, respectively.

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The following table provides information on TDRs (excluding PCI loans) as of dates indicated:

	Nonaccrual TDRs		Accrual TDRs		Total		Percentage
	(In thousands)
September 30, 2014
Real estate loans:
Commercial property
Retail	$	1,856	$	307	$	2,163		8.2	%
Hotel/Motel		1,885		991		2,876		10.9	%
Gas station		1,106		2,351		3,457		13.1	%
Other		2,056		5,480		7,536		28.6	%
Residential property		755		311		1,066		4.0	%
Commercial and industrial loans:
Commercial term		2,694		3,582		6,276		23.8	%
Commercial lines of credit		674		2,200		2,874		10.9	%
Consumer loans		135		—		135		0.5	%
Total Non-PCI loans	$	11,161	$	15,222	$	26,383		100.0	%
December 31, 2013
Real estate loans:
Commercial property
Retail	$	750	$	474	$	1,224		6.3	%
Hotel/Motel		2,030		—		2,030		10.4	%
Gas station		2,020		2,609		4,629		23.8	%
Other		2,237		2,027		4,264		21.9	%
Residential property		795		—		795		4.1	%
Commercial and industrial loans:
Commercial term		2,531		3,817		6,348		32.6	%
Commercial lines of credit		173		—		173		0.9	%
Total Non-PCI loans	$	10,536	$	8,927	$	19,463		100.0	%

For the three months ended September 30, 2014, we restructured monthly payments for three loans, with a net carrying value of $4.6 million at the time of modification, which we subsequently classified as troubled debt restructured loans. Temporary payment structure modifications included, but were not limited to, extending the maturity date, reducing the amount of principal and/or interest due monthly, and/or allowing for interest only monthly payments for six months or less.

As of September 30, 2014, TDRs on accrual status totaled $15.2 million, all of which were temporary interest rate and payment reductions or extensions of maturity, and a $2.1 million reserve relating to these loans was included in the allowance for loan losses. For the restructured loans on accrual status, we determined that, based on the financial capabilities of the borrowers at the time of the loan restructuring and the borrowers’ past performance in the payment of debt service under the previous loan terms, performance and collection under the revised terms is probable. As of September 30, 2014, TDRs on nonaccrual status totaled $11.1 million, and a $1.6 million reserve relating to these loans was included in the allowance for loan losses.

As of December 31, 2013, TDRs on accrual status totaled $19.5 million, all of which were temporary interest rate and payment reductions or extensions of maturity, and a $1.4 million reserve relating to these loans was included in the allowance for loan losses. For the restructured loans on accrual status, we determined that, based on the financial capabilities of the borrowers at the time of the loan restructuring and the borrowers’ past performance in the payment of debt service under the previous loan terms, performance and collection under the revised terms is probable. As of December 31, 2013, restructured loans on nonaccrual status totaled $10.5 million, and a $1.4 million reserve relating to these loans was included in the allowance for loan losses.

Allowance for Loan Losses and Allowance for Off-Balance Sheet Items

Provisions to allowance for loan losses are made quarterly to recognize probable loan losses. The quarterly provision is based on the allowance need, which is determined through analysis involving quantitative calculations based on historic loss rates for general reserves and individual impairment calculations for specific allocations to impaired loans as well as qualitative adjustments.

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In the second quarter of 2013, management evaluated the eight-quarter look-back period and restored the twelve quarter look-back period in order to capture a period of higher losses that would have otherwise been excluded. Risk factor calculations are weighted at 50.0 percent for the most recent four quarters, 33.0 percent for the next four quarters, and 17.0 percent for the oldest four quarters. In the first quarter of 2014, management reevaluated the look-back period and extended the periods to sixteen quarters to continue capturing a period of higher losses that would have been dropped off and to reflect potential losses in our current credit portfolio. Risk factor calculations are weighted at 46.0 percent for the first four quarters, 31.0 percent for the second four quarters, 15.0 percent for the third four quarters, and 8.0 percent for the last four quarters. As homogenous loans are bulk graded, the risk grade is not factored into the historical loss analysis. The change in methodology maintained the Bank’s allowance at a level consistent with the prior quarter.

To determine general reserve requirements, existing loans are divided into 11 general loan pools of risk-rated loans as well as three homogenous loan pools. For risk-rated loans, migration analysis allocates historical losses by loan pool and risk grade to determine risk factors for potential loss inherent in the current outstanding loan portfolio. In addition, specific reserves are allocated for loans deemed “impaired.”

When determining the appropriate level for allowance for loan losses, management considers qualitative adjustments for any factors that are likely to cause estimated credit losses associated with the Bank’s current portfolio to differ from historical loss experience, including, but not limited to, national and local economic and business conditions, volume and geographic concentrations, and problem loan trends.

To systematically quantify the credit risk impact of trends and changes within the loan portfolio, a credit risk matrix is utilized. The qualitative factors are considered on a loan pool by loan pool basis subsequent to, and in conjunction with, a loss migration analysis. The credit risk matrix provides various scenarios with positive or negative impact on the portfolio along with corresponding basis points for qualitative adjustments.

The following table reflects our allocation of allowance for loan losses by loan category as well as the loans receivable for each loan type:

	September 30, 2014							December 31, 2013
	Allowance					Loans		Allowance					Loans
	Amount		Percentage			Receivable		Amount		Percentage			Receivable
	(In thousands)
Real estate loans:
Commercial property
Retail	$	9,788		19.1	%	$	651,801	$	9,504		16.5	%	$	543,619
Hotel/Motel		8,817		17.2	%		466,611		8,580		14.9	%		322,927
Gas station		5,458		10.7	%		358,455		6,921		12.0	%		292,557
Other		14,802		28.9	%		821,411		17,839		31.0	%		731,617
Construction		669		1.3	%		4,146		—		0.0	%		—
Residential property		356		0.7	%		108,730		706		1.2	%		79,078
Total real estate loans		39,890		77.9	%		2,411,154		43,550		75.7	%		1,969,798
Commercial and industrial loans:
Commercial term		7,449		14.6	%		119,525		8,523		14.8	%		124,391
Commercial lines of credit		1,894		3.7	%		75,246		2,342		4.1	%		71,042
International loans		522		1.0	%		41,127		422		0.7	%		36,353
Total commercial and industrial loans		9,865		19.3	%		235,898		11,287		19.6	%		231,786
Consumer loans		325		0.6	%		28,907		1,427		2.5	%		32,505
Unallocated		1,099		2.1	%		—		1,291		2.2	%		—
Total	$	51,179		100.0	%	$	2,675,959	$	57,555		100.0	%	$	2,234,089

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The following table sets forth certain information regarding allowance for loan losses and allowance for off-balance sheet items for the periods presented. Allowance for off-balance sheet items is determined by applying reserve factors according to loan pool and grade as well as actual current commitment usage figures by loan type to existing contingent liabilities.

	As of and for the									As of and for the
	Three Months Ended									Nine Months Ended
	September 30, 2014			June 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
							(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	51,886		$	56,593		$	59,876		$	57,555		$	63,305
Actual charge-offs		(1,418	)		(2,547	)		(4,610	)		(5,569	)		(11,124	)
Recoveries on loans previously charged off		663			1,741			2,383			6,656			4,964
Net loan (charge-offs) recoveries		(755	)		(806	)		(2,227	)		1,087			(6,160	)
Provision (negative provision) charged to operating expense		48			(3,901	)		(10	)		(7,463	)		494
Balance at end of period	$	51,179		$	51,886		$	57,639		$	51,179		$	57,639
Allowance for off-balance sheet items:
Balance at beginning of period	$	1,592		$	1,557		$	1,320		$	1,247		$	1,824
(Negative provision) provision charged to operating expense		(48	)		35			10			297			(494	)
Balance at end of period	$	1,544		$	1,592		$	1,330		$	1,544		$	1,330
Ratios:
Net loan charge-offs (recoveries) to average gross loans (1)		0.12	%		0.14	%		0.41	%		-0.06	%		0.38	%
Net loan charge-offs (recoveries) to gross loans (1)		0.11	%		0.14	%		0.41	%		-0.05	%		0.38	%
Allowance for loan losses to average gross loans		2.05	%		2.26	%		2.64	%		2.18	%		2.69	%
Allowance for loan losses to gross loans		1.91	%		2.21	%		2.67	%		1.91	%		2.67	%
Net loan charge-offs (recoveries) to allowance for loan losses (1)		5.90	%		6.21	%		15.45	%		-2.83	%		14.25	%
Net loan charge-offs (recoveries) to provision charged to operating expenses		1572.92	%		-20.66	%		-22270.00	%		14.57	%		1246.96	%
Allowance for loan losses to nonperforming loans		213.09	%		204.43	%		253.07	%		213.09	%		253.07	%
Balance:
Average gross loans during period	$	2,498,554		$	2,298,996		$	2,186,884		$	2,352,069		$	2,142,462
Gross loans at end of period	$	2,675,959		$	2,349,235		$	2,159,271		$	2,675,959		$	2,159,271
Nonperforming loans at end of period	$	24,018		$	25,381		$	22,776		$	24,018		$	22,776

⁽¹⁾  Net loan charge-offs (recoveries) are annualized to calculate the ratios.

Allowance for loan losses decreased by $707,000, or 1.4 percent, to $51.2 million as of September 30, 2014, compared to $51.9 million as of June 30, 2014. Allowance for loan losses as a percentage of gross loans decreased to 1.91 percent as of September 30, 2014 from 2.21 percent as of June 30, 2014. For the three months ended September 30, 2014, a $48,000 provision for credit losses was recorded, compared to a $10,000 negative provision for credit losses for the same period in 2013. The $48,000 provision for credit losses was offset by the $48,000 negative provision for off-balance sheet items for the three months ended September 30, 2014, resulting in a zero provision for credit losses. The $10,000 negative provision for credit losses was offset by the $10,000 reversal in provision for off-balance sheet items, resulting in a zero provision for credit losses for the same period in 2013.

The decrease in allowance for loan losses as of September 30, 2014 was due primarily to improvements in historical loss rates and classified loans. Due to these factors, the general loan reserves as of September 30, 2014 decreased by $3.5 million, or 27.3 percent, to $9.3 million, as compared to $12.9 million as of June 30, 2014, and the qualitative adjustment as of September 30, 2014 increased by $2.4 million, or 7.4 percent, to $34.8 million, as compared to $32.4 million as of June 30, 2014.

An allowance for off-balance sheet exposure, primarily unfunded loan commitments, as of September 30, 2014 decreased to $1.5 million, compared to $1.6 million as of June 30, 2014. 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 reserves are adequate for losses inherent in the loan portfolio and off-balance sheet exposure as of September 30, 2014.

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

	As of and for the Three Months Ended								As of and for the Nine Months Ended
	Charge-offs			Recoveries		Net Recoveries (Charge-offs)			Charge-offs			Recoveries		Net Recoveries (Charge-offs)
September 30, 2014
Real estate loans:
Commercial property
Retail	$	—		$	8	$	8		$	—		$	24	$	24
Hotel/Motel		(461	)		—		(461	)		(1,547	)		25		(1,522	)
Gas station		(68	)		47		(21	)		(71	)		83		12
Other		(355	)		237		(118	)		(455	)		3,166		2,711
Commercial and industrial loans
Commercial term		(499	)		312		(187	)		(3,094	)		1,931		(1,163	)
Commercial lines of credit		—			52		52			(300	)		504		204
International loans		—			2		2			—			903		903
Consumer loans		(35	)		5		(30	)		(102	)		20		(82	)
Total Non-PCI loans	$	(1,418	)	$	663	$	(755	)	$	(5,569	)	$	6,656	$	1,087
September 30, 2013
Real estate loans:
Commercial property
Retail	$	—		$	8	$	8		$	(400	)	$	183	$	(217	)
Hotel/Motel		—			305		305			(465	)		305		(160	)
Gas station		—			649		649			(80	)		651		571
Other		(1,017	)		680		(337	)		(3,647	)		935		(2,712	)
Construction		—			—		—			—			850		850
Commercial and industrial loans
Commercial term		(3,068	)		423		(2,645	)		(5,808	)		1,589		(4,219	)
Commercial lines of credit		(507	)		311		(196	)		(507	)		386		(121	)
International loans		—			2		2			—			5		5
Consumer loans		(18	)		5		(13	)		(217	)		60		(157	)
Total Non-PCI loans	$	(4,610	)	$	2,383	$	(2,227	)	$	(11,124	)	$	4,964	$	(6,160	)

For the three months ended September 30, 2014, total charge-offs were $1.4 million, a decrease of $3.2 million, or 69.2 percent, from $4.6 million for the same period in 2013, and total recoveries were $663,000, a decrease of $1.7 million, or 72.1 percent, from $2.4 million for the same period in 2013. For the three months ended September 30, 2014, net charge-offs were $755,000, compared to $2.2 million for the same period in 2013.

For the nine months ended September 30, 2014, total charge-offs were $5.6 million, a decrease of $5.6 million, or 49.9 percent, from $11.1 million for the same period in 2013, and total recoveries were $6.7 million, an increase of $1.7 million, or 34.1 percent, from $5.0 million for the same period in 2013. For the nine months ended September 30, 2014, net recoveries were $1.1 million, compared to net charge-offs of $6.2 million for the same period in 2013.

Deposits

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

	September 30, 2014		December 31, 2013		Increase (Decrease)
					Amount		Percentage
	(In thousands)
Demand – noninterest-bearing	$	1,029,343	$	819,015	$	210,328		25.68	%
Interest-bearing:
Savings		121,667		115,371		6,296		5.46	%
Money market checking and NOW accounts		796,849		574,334		222,515		38.74	%
Time deposits of $100,000 or more		919,085		506,946		412,139		81.30	%
Other time deposits		731,210		496,659		234,551		47.23	%
Total deposits	$	3,598,154	$	2,512,325	$	1,085,829		43.22	%

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Deposits increased by $1.09 million, or 43.22 percent, to $3.60 billion as of September 30, 2014 from $2.51 billion as of December 31, 2013. The increase in deposits was attributable mainly to increases in acquired deposits from CBI of $1.11 billion, consisting of $143.1 million noninterest-bearing demand deposits, $251.2 million savings and money market checking, and $690.4 million time deposits.

Core deposits (defined as demand, savings, money market checking, NOW accounts and other time deposits) increased by $673.7 million, or 33.6 percent, to $2.68 billion at September 30, 2014 from $2.01 billion at December 31, 2013. Noninterest-bearing demand deposits as a percentage of deposits decreased to 28.6 percent at September 30, 2014 from 32.6 percent at December 31, 2013. We had brokered deposits of $99,000 assumed in CBI acquisition as of September 30, 2014 and there were none as of December 31, 2013.

Federal Home Loan Bank Advances and Other Borrowings

Federal Home Loan Bank (“FHLB”) advances and other borrowings mostly take the form of advances from the FHLB of San Francisco and overnight federal funds. At September 30, 2014, advances from the FHLB were $110.0 million, a decrease of $17.5 million from $127.5 million at December 31, 2013. All of the advances were overnight borrowings with 0.07 percent at September 30, 2014. See “Note 8 — Subordinated Debentures and Rescinded Stock Obligation” for liabilities assumed from the CBI acquisition.

Interest Rate Risk Management

Interest rate risk indicates our exposure to market interest rate fluctuations. The movement of interest rates directly and inversely affects the economic value of fixed-income assets, which is the present value of future cash flow discounted by the current interest rate; under the same conditions, the higher the current interest rate, the higher the denominator of discounting. Interest rate risk management is intended to decrease or increase the level of our exposure to market interest rates. The level of interest rate risk can be managed through such means as the changing of gap positions and the volume of fixed-income assets. For successful management of interest rate risk, we use various methods to measure existing and future interest rate risk exposures, giving effect to historical attrition rates of core deposits. In addition to regular reports used in business operations, repricing gap analysis, stress testing and simulation modeling are the main measurement techniques used to quantify interest rate risk exposure.

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The following table shows the status of our gap position as of September 30, 2014:

	Less Than Three Months			More Than Three Months But Less Than One Year			More Than One Year But Less Than Five Years			More Than Five Years			Non-Interest- Sensitive			Total
	(In thousands)
Assets
Cash and due from banks	$	—		$	—		$	—		$	—		$	78,720		$	78,720
Interest-bearing deposits in other banks		118,296			—			—			—			—			118,296
Investment securities:
Fixed rate		32,376			66,127			360,908			454,706			—			914,117
Floating rate		158,654			40,181			26,221			—			—			225,056
Fair value adjustments		—			—			—			—			(10,549	)		(10,549	)
Loans:
Fixed rate		111,877			119,654			398,723			49,171			—			679,425
Floating rate		988,444			143,094			822,389			18,589			—			1,972,516
Nonaccrual		—			—			—			—			24,003			24,003
Deferred loan costs, discount, and allowance for loan losses		—			—			—			—			(47,868	)		(47,868	)
Federal home loan bank and federal reserve bank stock		—			—			—			29,852			—			29,852
Other assets		—			30,372			—			21,841			192,551			244,764
Total assets	$	1,409,647		$	399,428		$	1,608,241		$	574,159		$	236,857		$	4,228,332
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Demand – noninterest-bearing	$	—		$	—		$	—		$	—		$	1,029,343		$	1,029,343
Savings		18,736			33,486			49,315			20,131			—			121,668
Money market checking and NOW accounts		69,144			138,054			353,054			236,598			—			796,850
Time deposits		232,142			809,338			598,021			10,792			—			1,650,293
Federal home loan bank advances		110,000			—			—			—			—			110,000
Other liabilities		—			—			—			—			84,984			84,984
Stockholders’ equity		—			—			—			—			435,194			435,194
Total liabilities and stockholders’ equity	$	430,022		$	980,878		$	1,000,390		$	267,521		$	1,549,521		$	4,228,332
Repricing gap		979,625			(581,450	)		607,851			306,638			(1,312,664	)
Cumulative repricing gap		979,625			398,175			1,006,026			1,312,664			—
Cumulative repricing gap as a percentage of assets		23.17	%		9.42	%		23.79	%		31.04	%		0.00	%
Cumulative repricing gap as a percentage of interest-earning assets		24.91	%		10.13	%		25.59	%		33.38	%		0.00	%
Interest-earning assets																$	3,932,024

The repricing gap analysis measures the static timing of repricing risk of assets and liabilities (i.e., a point-in-time analysis measuring the difference between assets maturing or repricing in a period and liabilities maturing or repricing within the same period). Assets are assigned to maturity and repricing categories based on their expected repayment or repricing dates, and liabilities are assigned based on their repricing or maturity dates. Interest-bearing core deposits that have no maturity dates (savings, and money market checking and NOW accounts) are assigned to categories based on expected decay rates.

As of September 30, 2014, the cumulative repricing gap for the three-month period was at an asset-sensitive position and was 24.91 percent of interest-earning assets, which decreased from 29.84 percent as of December 31, 2013. As of September 30, 2014, the cumulative repricing gap for the twelve-month period was at an asset-sensitive position and was 10.13 percent of interest-earning assets, which decreased from 14.35 percent of an asset-sensitive position as of December 31, 2013.

The following table summarizes the status of the cumulative gap position as of the dates indicated:

	Less Than Three Months						Less Than Twelve Months
	September 30, 2014			December 31, 2013			September 30, 2014			December 31, 2013
	(In thousands)
Cumulative repricing gap	$	979,625		$	859,764		$	398,175		$	413,479
Percentage of assets		23.17	%		28.14	%		9.42	%		13.53	%
Percentage of interest-earning assets		24.91	%		29.84	%		10.13	%		14.35	%

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

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capital protection through stable earnings rather than maximizing yield. 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.

To supplement traditional gap analysis, we perform 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 market 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). This sensitivity analysis is compared to policy limits, which specify the maximum tolerance level for net interest income exposure over a one-year horizon, given the basis point adjustment in interest rates reflected below.

			Percentage Changes						Change in Amount
Change in Interest Rate			Net Interest Income			Economic Value of Equity			Net Interest Income		Economic Value of Equity
			(In thousands)
	300	%		14.26	%		-11.40	%	$	148,197	$	60,686
	200	%		9.49	%		-8.10	%	$	142,012	$	43,151
	100	%		4.70	%		-3.60	%	$	135,804	$	18,977
	-100	%		-4.41	%		-3.40	%	$	123,991	$	17,865

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 nature and timing of interest rate levels including yield curve shape, prepayments on loans and securities, pricing strategies on loans and deposits, and replacement of asset and liability cash flows. 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

Historically, our primary source of capital has been the retention of operating earnings. In order to ensure adequate levels of capital, the Board continually assesses projected sources and uses of capital in conjunction with projected increases in assets and levels of risk. Management considers, among other things, earnings generated from operations, and access to capital from financial markets through the issuance of additional securities, including common stock or notes, to meet our capital needs.

At September 30, 2014, the Bank’s total risk-based capital ratio of 16.28 percent, Tier 1 risk-based capital ratio of 15.00 percent, and Tier 1 leverage capital ratio of 12.81 percent, placed the Bank in the “well capitalized” category, which is defined as institutions with total risk-based capital ratio equal to or greater than 10.00 percent, Tier 1 risk-based capital ratio equal to or greater than 6.00 percent, and Tier 1 leverage capital ratio equal to or greater than 5.00 percent.

For a discussion of recently implemented changes to the capital adequacy framework prompted by Basel III and the Dodd-Frank Wall Street Reform and Consumer Protection Act, see “Note 11 — Regulatory Matters” of Notes to Consolidated Financial Statements (Unaudited) in this Quarterly Report on Form 10-Q.

Off-Balance Sheet Arrangements

For a discussion of off-balance sheet arrangements, see “Note 15 — Off-Balance Sheet Commitments” of Notes to Consolidated Financial Statements (Unaudited) in this Quarterly Report on Form 10-Q and “Item 1. Business — Off-Balance Sheet Commitments” in our 2013 Annual Report on Form 10-K.

Contractual Obligations

There have been no material changes to the contractual obligations described in our 2013 Annual Report on Form 10-K.

Recently Issued Accounting Standards

FASB ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, was issued to change the criteria for reporting discontinued operations and requires additional disclosures about discontinued operations. ASU 2014-08 requires that an entity report as a discontinued operation only a disposal that represents a strategic shift in operations

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that has a major effect on its operations and financial results. ASU 2014-08 is effective prospectively for new disposals (or classifications as held-for-sale) that occur within annual periods beginning on or after December 15, 2014, and interim periods within those annual periods, for public business entities and not-for-profit entities that have issued (or are a conduit obligor for) securities that are traded, listed, or quoted on an exchange or an over-the-counter market. For other entities, the ASU is effective for disposals (or classifications as held-for-sale) that occur within annual periods beginning on or after December 15, 2014, and interim periods thereafter. The adoption of the ASU is not expected to have a significant impact on our financial condition or result of operations.

FASB ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (Topic 310-40), was issued to define the term in substance a repossession or foreclosure and physical possession in accounting literature and when a creditor should derecognize the loan receivable and recognize the real estate property. The amendments in this update are intended to reduce diversity in practice by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The amendment is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of FASB ASU 2014-04 is not expected to have a significant impact on our financial condition or result of operations.

FASB ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the Emerging Issues Task Force), was issued to permit a reporting entity to make an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The amendments are expected to enable more entities to record the amortization of the investment in income tax expense together with the tax credits and other tax benefits generated from the partnership. The ASU is effective retrospectively for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. For all entities other than public business entities, the amendments are effective retrospectively for annual periods beginning after December 15, 2014, and interim periods within annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company adopted the ASU effective April 1, 2014. See “Note 3 — Accounting for Investment in Qualified Affordable Housing Projects.” for further details.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

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

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of September 30, 2014, Hanmi Financial carried out an evaluation of the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act, under the supervision and with the participation of our senior management, including our Chief Executive Officer (principal executive officer) and our Chief Financial Officer (principal financial and accounting officer). The purpose of the disclosure controls and procedures is to ensure that information required to be disclosed in the reports that are filed or submitted under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that Hanmi Financial’s disclosure controls and procedures were effective as of September 30, 2014.

Internal Controls

During our most recent fiscal quarter, there have been no changes in our internal control over financial reporting that has materially affected or is reasonably likely to materially affect our internal control over financial reporting. However, due to the acquisition of CBI one month prior to the end of the third quarter, we have been unable to complete our assessment of the internal control environment at CBI. Therefore, we performed additional procedures to substantiate the financial results attributable to CBI during the third quarter. We expect to complete our assessment of CBI’s internal control environment prior to year end.

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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 the risk factors previously disclosed in our 2013 Annual Report on Form 10-K.

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number	Document
3.1	Amended and Restated Certificate of Incorporation of Hanmi Financial Corporation, dated April 19, 2000 (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, filed with the SEC on November 9, 2010).
3.2	Certificate of Second Amendment of Certificate of Incorporation of Hanmi Financial Corporation, dated June 23, 2004 (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, filed with the SEC on November 9, 2010).
3.3	Certificate of Amendment of Amended and Restated Certificate of Incorporation of Hanmi Financial Corporation, dated May 28, 2009 (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, filed with the SEC on November 9, 2010).
3.4	Certificate of Amendment of Amended and Restated Certificate of Incorporation of Hanmi Financial Corporation, dated July 28, 2010 (Previously filed and incorporated by reference herein from Hanmi Financial’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, filed with the SEC on November 9, 2010).
3.5	Certificate of Amendment of Amended and Restated Certificate of Incorporation of Hanmi Financial Corporation, dated December 16, 2011 (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report on Form 8-K, filed with the SEC on December 19, 2011).
3.6	Amended and Restated Bylaws of Hanmi Financial Corporation, dated April 19, 2000 (Previously filed and incorporated by reference herein from Hanmi Financial’s Registration Statement on Form S-3, filed with the SEC on February 4, 2010).
3.7	Certificate of Amendment to Bylaws of Hanmi Financial Corporation, dated November 21, 2007 (Previously filed and incorporated by reference herein from Hanmi Financial’s Registration Statement on Form S-3, filed with the SEC on February 4, 2010).
3.8	Certificate of Amendment to Bylaws of Hanmi Financial Corporation, dated October 14, 2009 (Previously filed and incorporated by reference herein from Hanmi Financial’s Registration Statement on Form S-3, filed with the SEC on February 4, 2010).
3.9	Third Amendment to Amended and Restated Bylaws of Hanmi Financial Corporation, dated March 26, 2014 (Previously filed and incorporated by reference herein from Hanmi Financial’s Current Report on Form 8-K, filed with the SEC on March 28, 2014).

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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	XBRL Instance Document *
101.SCH	XBRL Taxonomy Extension Schema Document *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document *
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document *
101.LAB	XBRL Taxonomy Extension Label Linkbase Document *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document *

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

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Signatures

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

			Hanmi Financial Corporation
Date:	November 12, 2014	By:	/s/ C. G. Kum
			C. G. Kum
			President and Chief Executive Officer
		By:	/s/ Shick (Mark) Yoon
			Shick (Mark) Yoon
			Executive Vice President and Chief Financial Officer

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EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer

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

I, C. G. Kum, 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 statement 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 controls over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

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

Date:	November 12, 2014	/s/ C. G. Kum
		C. G. Kum
		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, Shick (Mark) Yoon, 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 statement 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 controls over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

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

Date:	November 12, 2014	/s/ Shick (Mark) Yoon
		Shick (Mark) Yoon
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification Pursuant To

18 U.S.C. Section 1350,

As Adopted Pursuant To

Section 906 of The Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Hanmi Financial Corporation (the “Company”) on Form 10-Q for the period ended September 30, 2014, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), I, C. G. Kum, 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 Section15(d) of the Securities Exchange Act of 1934; and

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

Date:	November 12, 2014	/s/ C. G. Kum
		C. G. Kum
		President and Chief Executive Officer

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

EX-32.2

Exhibit 32.2

Certification Pursuant To

18 U.S.C. Section 1350,

As Adopted Pursuant To

Section 906 of The Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Hanmi Financial Corporation (the “Company”) on Form 10-Q for the period ended September 30, 2014, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), I, Shick (Mark) Yoon, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge that:

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

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

Date:	November 12, 2014	/s/ Shick (Mark) Yoon
		Shick (Mark) Yoon
		Executive Vice President and Chief Financial Officer

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

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Acquisition - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended	9 Months Ended
	Aug. 31, 2014	Sep. 30, 2014	Sep. 30, 2014 Branches	Sep. 30, 2013	Aug. 31, 2014
Loans At Acquisition Date [Line Items]
Number of branch locations			49
Bargain purchase gain on acquisition		$ 6,593,000	$ 6,593,000
Merger and integration expense		3,415,000	3,572,000
Core deposit intangible					2,213,000
Core deposit intangible, useful life	10 years
Amortization expense of core deposit intangible		33,000	33,000	123,000
Certificates of deposit					11,300,000
Amortization of certificates of deposit		591,000
Discount on subordinated debentures					8,300,000
Amortization of subordinated debentures		35,000	36,000
Central Bancorp, Inc [Member]
Loans At Acquisition Date [Line Items]
Consideration paid for redemption of preferred stock and cumulative unpaid dividends	28,675,000
Common stock, price per share after acquisition					$ 17.64
Consideration paid	50,000,000
Total assets acquired					1,255,929,000
Total liabilities assumed					1,169,095,000
Total identifiable net assets					86,834,000
Loans					294,032,000
Total deposits					1,098,997,000
Number of branch locations			23
Bargain purchase gain on acquisition	6,593,000
Merger and integration expense			3,572,000
Core deposit intangible					2,213,000
Subordinated Debentures [Member] | Central Bancorp, Inc [Member]
Loans At Acquisition Date [Line Items]
Consideration paid for accrued interest on subordinated debentures	1,566,000
Discount on subordinated debentures		8,300,000	8,300,000
Amortization of subordinated debentures		$ 35,000

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Loans - Loans Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 2,675,959			$ 2,159,271
Allowance for loans losses	(51,179)	(51,886)	(57,555)	(57,639)	(59,876)	(63,305)
Deferred loan costs	3,311
Loans receivable, net	2,628,091		2,177,498
Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	2,411,154			1,921,659
Allowance for loans losses	(39,891)	(40,303)	(43,550)	(45,225)	(46,396)	(49,472)
Commercial and industrial loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	235,898			203,547
Allowance for loans losses	(9,864)	(9,738)	(11,287)	(8,668)	(11,118)	(10,636)
Consumer loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	28,907			34,065
Allowance for loans losses	(324)	(540)	(1,427)	(1,639)	(1,884)	(2,280)
Non-PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	2,608,935		2,234,089
Allowance for loans losses	(51,179)		(57,555)
Deferred loan costs	3,311		964
Loans receivable, net	2,561,067		2,177,498
Non-PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	2,344,538		1,969,798
Non-PCI Loans [Member] | Commercial and industrial loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	235,548		231,786
Non-PCI Loans [Member] | Consumer loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	28,849		32,505
PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	67,024
Loans receivable, net	67,024
PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	66,616
PCI Loans [Member] | Commercial and industrial loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	350
PCI Loans [Member] | Consumer loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	58
Retail [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	651,801
Retail [Member] | Non-PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	635,861		543,619
Retail [Member] | PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	15,940
Hotel/Motel [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	466,611
Hotel/Motel [Member] | Non-PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	452,405		322,927
Hotel/Motel [Member] | PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	14,206
Gas station [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	358,455
Gas station [Member] | Non-PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	340,386		292,557
Gas station [Member] | PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	18,069
Other [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	821,411
Other [Member] | Non-PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	805,696		731,617
Other [Member] | PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	15,715
Construction [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	4,146
Construction [Member] | Non-PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	4,146
Residential property [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	108,730
Residential property [Member] | Non-PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	106,044		79,078
Residential property [Member] | PCI Loans [Member] | Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	2,686
Commercial term [Member] | Commercial and industrial loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	119,525
Commercial term [Member] | Non-PCI Loans [Member] | Commercial and industrial loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	119,175		124,391
Commercial term [Member] | PCI Loans [Member] | Commercial and industrial loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	350
Commercial lines of credit [Member] | Commercial and industrial loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	75,246
Commercial lines of credit [Member] | Non-PCI Loans [Member] | Commercial and industrial loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	75,246		71,042
International loans [Member] | Commercial and industrial loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	41,127
International loans [Member] | Non-PCI Loans [Member] | Commercial and industrial loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 41,127		$ 36,353

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Sale of Insurance Subsidiaries and Discontinued Operations - Summarized Financial Information of Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Discontinued Operations and Disposal Groups [Abstract]
Cash and cash equivalents	$ 1,602				$ 1,396
Premises and equipment, net	90				79
Other intangible assets, net	1,089				1,171
Other assets	2,855				3,298
Total assets	5,636				5,944
Income tax payable	415				1,304
Accrued expenses and other liabilities	1,878				2,171
Total liabilities	2,293				3,475
Net assets of discontinued operations	3,343				2,469
Non-interest (loss) income	(52)	112	(14)	242
Gain on disposal			51
Income before taxes		112	37	242
Provision for income taxes		42	481	81
Net income (loss) from discontinued operations	$ (467)	$ 70	$ (444)	$ 161

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Loans - Schedule of Changes in Outstanding Balance and Carrying Amount of PCI Loans (Detail) (USD $) In Thousands, unless otherwise specified			9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 PCI Loans [Member]
Carrying Amount
Balance at beginning of period	$ 2,675,959	$ 2,159,271
Additions from CBI acquisition			75,878
Accretion			491
Payment received			(5,892)
Disposals/transfers to OREO			(3,453)
Balance at end of period	2,675,959	2,159,271	67,024
Accretable Yield
Additions from CBI acquisition			(22,858)
Accretion			491
Payment received
Disposals/transfers to OREO			212
Balance at end of period			$ (22,155)

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Loans - Loans Receivable (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 Real estate loans [Member]	Sep. 30, 2013 Real estate loans [Member]	Sep. 30, 2014 Commercial property [Member] Owner occupied real estate [Member] Real estate loans [Member]	Dec. 31, 2013 Commercial property [Member] Owner occupied real estate [Member] Real estate loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans	$ 2,675,959	$ 2,159,271	$ 2,411,154	$ 1,921,659	$ 1,100,000	$ 957,300

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Regulatory Matters - Additional Information (Detail)	Sep. 30, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Minimum ratio of qualifying total capital to risk-weighted assets	8.00%
Minimum ratio of Tier 1 capital to risk-weighted assets	4.00%
Leverage ratio	4.00%
Minimum ratio of qualifying total capital to risk-weighted assets for well capitalized	10.00%
Minimum ratio of Tier 1 capital to average assets for well capitalized	6.00%
Depository Institutions [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage ratio	5.00%

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Accounting for Investments in Qualified Affordable Housing Projects - Summary of Change in Accounting Principle on Statements of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended				9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2013 As Previously Reported [Member]	Dec. 31, 2013 As Previously Reported [Member]	Sep. 30, 2013 Effect of Change in Accounting Principle [Member]
Cash flows from operating activities:
Net income	$ 13,264	$ 10,385	$ 35,320	$ 29,930	$ 29,879		$ 51
Total adjustment in net income				18,047	18,098		(51)
Net cash provided by operating activities			24,705	47,977	47,977
Cash flows from investing activities:
Net cash used in investing activities			37,704	(71,768)	(71,768)
Cash flows from financing activities:
Net cash used in financing activities			(44,750)	(50,402)	(50,402)
Net decrease in cash and cash equivalents			17,659	(74,193)	(74,193)
Cash and cash equivalents at beginning of year			179,357	268,047	268,047	179,357
Cash and cash equivalents at end of period	$ 197,016	$ 193,854	$ 197,016	$ 193,854	$ 193,854	$ 179,357

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Activity in Accumulated Other Comprehensive Income

Activity in accumulated other comprehensive income for the three months ended September 30, 2014 and 2013 was as follows:

	Unrealized Gains and Losses on Available-for-Sale Securities			Unrealized Gains and Losses on Interest-Only Strip			Tax Benefit		Total
	(In thousands)
For the three months ended September 30 2014:
Balance at beginning of period	$	(5,534	)	$	17		$	3,367	$	(2,150	)
Other comprehensive (loss) income before reclassification		(4,947	)		(3	)		2,102		(2,848	)
Reclassification from accumulated other comprehensive income		(67	)		—			—		(67	)
Period change		(5,014	)		(3	)		2,102		(2,915	)
Balance at end of period	$	(10,548	)	$	14		$	5,469	$	(5,065	)
For the three months ended September 30, 2013:
Balance at beginning of period	$	915		$	17		$	702	$	1,634
Other comprehensive (loss) income before reclassification		(10,020	)		—			4,528		(5,492	)
Reclassification from accumulated other comprehensive income		(611	)		—			—		(611	)
Period change		(10,631	)		—			4,528		(6,103	)
Balance at end of period	$	(9,716	)	$	17		$	5,230	$	(4,469	)

Activity in accumulated other comprehensive income for the nine months ended September 30, 2014 and 2013 was as follows:

	Unrealized Gains and Losses  on Available-for-Sale Securities			Unrealized Gains and Losses on Interest-Only Strip			Tax Benefit (Expense)			Total
	(In thousands)
For the nine months ended September 30 2014:
Balance at beginning of period	$	(18,187	)	$	16		$	8,791		$	(9,380	)
Other comprehensive income (loss) before reclassification		9,491			(2	)		(3,322	)		6,167
Reclassification from accumulated other comprehensive income		(1,852	)		—			—			(1,852	)
Period change		7,639			(2	)		(3,322	)		4,315
Balance at end of period	$	(10,548	)	$	14		$	5,469		$	(5,065	)
For the nine months ended September 30, 2013:
Balance at beginning of period	$	7,348		$	16		$	(1,946	)	$	5,418
Other comprehensive (loss) income before reclassification		(16,141	)		1			7,176			(8,964	)
Reclassification from accumulated other comprehensive income		(923	)		—			—			(923	)
Period change		(17,064	)		1			7,176			(9,887	)
Balance at end of period	$	(9,716	)	$	17		$	5,230		$	(4,469	)

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Regulatory Matters - Capital Ratios of Hanmi Financial and Bank (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	8.00%
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	4.00%
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets	4.00%
Minimum to Be Categorized as Well Capitalized Percentage, Total capital to risk-weighted assets	10.00%
Minimum to Be Categorized as Well Capitalized Percentage, Tier 1 capital to risk-weighted assets	6.00%
Hanmi Financial [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Actual Capital, Total capital to risk-weighted assets	$ 482,481	$ 426,614
Actual Capital, Tier 1 capital to risk-weighted assets	445,357	395,763
Actual Capital, Tier 1 capital to average assets	445,357	395,763
Actual Capital Percentage, Total capital to risk-weighted assets	16.33%	17.48%
Actual Capital Percentage, Tier 1 capital to risk-weighted assets	15.08%	16.26%
Actual Capital Percentage, Tier 1 capital to average assets	12.80%	13.62%
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets	236,338	195,210
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets	118,169	97,605
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets	139,169	116,249
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	8.00%	8.00%
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	4.00%	4.00%
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets	4.00%	4.00%
Hanmi Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Actual Capital, Total capital to risk-weighted assets	482,802	409,095
Actual Capital, Tier 1 capital to risk-weighted assets	444,771	378,295
Actual Capital, Tier 1 capital to average assets	444,771	378,295
Actual Capital Percentage, Total capital to risk-weighted assets	16.28%	16.79%
Actual Capital Percentage, Tier 1 capital to risk-weighted assets	15.00%	15.53%
Actual Capital Percentage, Tier 1 capital to average assets	12.81%	13.05%
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets	237,193	194,880
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets	118,597	97,440
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets	138,926	115,984
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	8.00%	8.00%
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	4.00%	4.00%
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets	4.00%	4.00%
Minimum to Be Categorized as Well Capitalized Capital, Total capital to risk-weighted assets	296,492	243,600
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to risk-weighted assets	177,895	146,160
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to average assets	$ 173,658	$ 144,980
Minimum to Be Categorized as Well Capitalized Percentage, Total capital to risk-weighted assets	10.00%	10.00%
Minimum to Be Categorized as Well Capitalized Percentage, Tier 1 capital to risk-weighted assets	6.00%	6.00%
Minimum to Be Categorized as Well Capitalized Percentage, Tier 1 capital to average assets	5.00%	5.00%

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Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes for continuing operations	$ 4,968,000	$ 6,582,000	$ 19,667,000	$ 17,510,000
Effective income tax rate	27.25%	38.95%	35.48%	41.42%
Discrete deferred tax benefit	400,000
Valuation allowance	$ 0		$ 0
Income tax years under examination			December 31, 2004 through 2013

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Share-Based Compensation - Summary of Stock Options Outstanding under Plans (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014 Y	Sep. 30, 2013	Sep. 30, 2014 Y	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding at beginning of period	581,913		546,595
Number of Shares, Options granted	28,000		133,000
Number of Shares, Options exercised	(687)	(38,437)	(34,382)	(40,678)
Number of Shares, Options forfeited	(1,876)		(9,751)
Number of Shares, Options expired	(2,875)		(30,987)
Number of Shares, Options outstanding at end of period	604,475		604,475
Number of Shares, Options exercisable at end of period	194,757		194,757
Weighted-Average Exercise Price Per Share, Options outstanding at beginning of period	$ 24.32		$ 28.09
Weighted-Average Exercise Price Per Share, Options granted	$ 20.57		$ 21.60
Weighted-Average Exercise Price Per Share, Options exercised	$ 12.54		$ 12.54
Weighted-Average Exercise Price Per Share, Options forfeited	$ 12.54		$ 12.54
Weighted-Average Exercise Price Per Share, Options expired	$ 109.71		$ 106.26
Weighted-Average Exercise Price Per Share, Options outstanding at end of period	$ 23.79		$ 23.79
Weighted-Average Exercise Price Per Share, Options exercisable at end of period	$ 37.21		$ 37.21
Weighted-Average Remaining Contractual Life, Options outstanding at beginning of period	8.6		8.4
Weighted-Average Remaining Contractual Life, Options granted	10 years		9 years 8 months 12 days
Weighted-Average Remaining Contractual Life, Options exercised	8.2		7.9
Weighted-Average Remaining Contractual Life, Options forfeited	8 years 2 months 12 days		8 years 2 months 12 days
Weighted-Average Remaining Contractual Life, Options expired	3 years 3 months 18 days		6 months
Weighted-Average Remaining Contractual Life, Options outstanding at end of period	8.5		8.5
Weighted-Average Remaining Contractual Life, Options exercisable at end of period	7 years 2 months 12 days		7 years 2 months 12 days
Aggregate Intrinsic Value of In-the-Money Options, Options outstanding at beginning of period	$ 2,168		$ 3,384
Aggregate Intrinsic Value of In-the-Money Options, Options exercised
Aggregate Intrinsic Value of In-the-Money Options, Options forfeited
Aggregate Intrinsic Value of In-the-Money Options, Options expired
Aggregate Intrinsic Value of In-the-Money Options, Options outstanding at end of period	2,188		2,188
Aggregate Intrinsic Value of In-the-Money Options, Options exercisable at end of period	871		871
Aggregate Intrinsic Value of In-the-Money Options, Options granted

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Loans - Loans Receivable to Loans Held for Sale (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Balance at beginning of period	$ 3,842	$ 2,553		$ 8,306
Origination of loans held for sale	18,229	17,135	34,798	63,112
Reclassification from loans receivable to loans held for sale				8,009
Reclassification from loans held for sale to loans receivable		(2,534)		(2,534)
Sales of loans held for sale	(14,268)	(11,906)	(26,986)	(71,626)
Principal payoffs and amortization	(46)	(20)	(55)	(39)
Balance at end of period	7,757	5,228	7,757	5,228
Real estate loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Balance at beginning of period	2,568	2,137		7,977
Origination of loans held for sale	15,198	15,634	29,591	58,725
Reclassification from loans receivable to loans held for sale				7,593
Reclassification from loans held for sale to loans receivable		(2,118)		(2,118)
Sales of loans held for sale	(12,135)	(10,725)	(23,953)	(67,235)
Principal payoffs and amortization	(20)	(20)	(27)	(34)
Balance at end of period	5,611	4,908	5,611	4,908
Commercial and industrial loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Balance at beginning of period	1,274	416		329
Origination of loans held for sale	3,031	1,501	5,207	4,387
Reclassification from loans receivable to loans held for sale				416
Reclassification from loans held for sale to loans receivable		(416)		(416)
Sales of loans held for sale	(2,133)	(1,181)	(3,033)	(4,391)
Principal payoffs and amortization	(26)		(28)	(5)
Balance at end of period	$ 2,146	$ 320	$ 2,146	$ 320

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Accumulated Other Comprehensive Income - Activity in Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended			3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 Accumulated Net Unrealized Investment Gain (Loss) [Member]	Sep. 30, 2013 Accumulated Net Unrealized Investment Gain (Loss) [Member]	Sep. 30, 2014 Accumulated Net Unrealized Investment Gain (Loss) [Member]	Sep. 30, 2013 Accumulated Net Unrealized Investment Gain (Loss) [Member]	Sep. 30, 2014 Accumulated Net Unrealized Investment Gain (Loss) [Member] Interest-Only Strip [Member]	Sep. 30, 2014 Accumulated Net Unrealized Investment Gain (Loss) [Member] Interest-Only Strip [Member]	Sep. 30, 2013 Accumulated Net Unrealized Investment Gain (Loss) [Member] Interest-Only Strip [Member]	Jun. 30, 2013 Accumulated Net Unrealized Investment Gain (Loss) [Member] Interest-Only Strip [Member]	Sep. 30, 2014 Tax (Expense) Benefit [Member]	Sep. 30, 2013 Tax (Expense) Benefit [Member]	Sep. 30, 2014 Tax (Expense) Benefit [Member]	Sep. 30, 2013 Tax (Expense) Benefit [Member]
Accumulated Other Comprehensive Income [Line Items]
Balance at beginning of period	$ (2,150)	$ 1,634	$ (9,380)	$ 5,418	$ (5,534)	$ 915	$ (18,187)	$ 7,348	$ 17	$ 16	$ 16	$ 17	$ 3,367	$ 702	$ 8,791	$ (1,946)
Other comprehensive (loss) income before reclassification	(2,848)	(5,492)	6,167	(8,964)	(4,947)	(10,020)	9,491	(16,141)	(3)	(2)	1		2,102	4,528	(3,322)	7,176
Reclassification from accumulated other comprehensive income	(67)	(611)	(1,852)	(923)	(67)	(611)	(1,852)	(923)
Other comprehensive (loss) income	(2,915)	(6,103)	4,315	(9,887)	(5,014)	(10,631)	7,639	(17,064)	(3)	(2)	1		2,102	4,528	(3,322)	7,176
Balance at end of period	$ (5,065)	$ (4,469)	$ (5,065)	$ (4,469)	$ (10,548)	$ (9,716)	$ (10,548)	$ (9,716)	$ 14	$ 14	$ 17	$ 17	$ 5,469	$ 5,230	$ 5,469	$ 5,230

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Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Financial assets:
Available-for-Sale, Estimated Fair Value	$ 1,128,624	$ 530,926
Accrued interest receivable	9,880	7,055
Investment in federal reserve bank stock	12,273	11,196
Financial liabilities:
Noninterest-bearing deposits	1,029,343	819,015
Interest-bearing deposits	2,568,811	1,693,310
Accrued interest payable	3,030	3,366
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	197,016	179,357
Available-for-Sale, Estimated Fair Value	1,128,624	530,926
Loans receivable, net of allowance for loan losses	2,628,091	2,177,498
Loans held for sale	7,757
Accrued interest receivable	9,880	7,055
Servicing assets	7,844	6,833
Investment in federal home loan bank stock	17,579	14,060
Investment in federal reserve bank stock	12,273	11,196
Financial liabilities:
Noninterest-bearing deposits	1,029,343	819,015
Interest-bearing deposits	2,568,811	1,693,310
Borrowings	128,509	127,546
Accrued interest payable	3,030	3,366
Off-balance sheet items:
Commitments to extend credit	327,381	246,161
Standby letters of credit	9,140	8,926
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets [Member]
Financial assets:
Cash and cash equivalents	197,016	179,357
Available-for-Sale, Estimated Fair Value	172,956	103,533
Accrued interest receivable	9,880	7,055
Investment in federal home loan bank stock	17,579	14,060
Investment in federal reserve bank stock	12,273	11,196
Financial liabilities:
Accrued interest payable	3,030	3,366
Fair Value [Member] | Significant Observable Inputs with No Active Market with Identical Characteristics [Member]
Financial assets:
Available-for-Sale, Estimated Fair Value	954,500	426,645
Loans held for sale	7,757
Financial liabilities:
Noninterest-bearing deposits	1,029,343	819,015
Fair Value [Member] | Significant Unobservable Inputs [Member]
Financial assets:
Available-for-Sale, Estimated Fair Value	1,168	748
Loans receivable, net of allowance for loan losses	2,686,838	2,204,069
Servicing assets	7,844	6,833
Financial liabilities:
Interest-bearing deposits	2,565,504	1,693,739
Borrowings	128,509	247,249
Off-balance sheet items:
Commitments to extend credit	327,381	246,161
Standby letters of credit	$ 9,140	$ 8,926

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	$ 1,128,624	$ 530,926
Stock warrants		2
Mortgage-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	584,157	217,059
U.S. government agency securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	172,793	83,536
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	16,940	20,835
U.S treasury securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	163
Other securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	22,704	2,886
Equity security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	450
U.S. treasury securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	163	19,997
SBA loan pools securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	114,117	12,629
Municipal bonds-tax exempt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	4,429	13,937
Municipal bonds-taxable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	16,660	32,354
Collateralized mortgage obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	196,211	127,693
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	172,956	103,533
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets [Member] | U.S. government agency securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	172,793	83,536
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets [Member] | U.S treasury securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	163
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets [Member] | U.S. treasury securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale		19,997
Recurring Basis [Member] | Significant Observable Inputs with No Active Market with Identical Characteristics [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	954,500	426,645
Recurring Basis [Member] | Significant Observable Inputs with No Active Market with Identical Characteristics [Member] | Mortgage-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	584,157	217,059
Recurring Basis [Member] | Significant Observable Inputs with No Active Market with Identical Characteristics [Member] | Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	16,940	20,835
Recurring Basis [Member] | Significant Observable Inputs with No Active Market with Identical Characteristics [Member] | Other securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	22,704	2,886
Recurring Basis [Member] | Significant Observable Inputs with No Active Market with Identical Characteristics [Member] | SBA loan pools securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	114,117	12,629
Recurring Basis [Member] | Significant Observable Inputs with No Active Market with Identical Characteristics [Member] | Municipal bonds-tax exempt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	3,711	13,189
Recurring Basis [Member] | Significant Observable Inputs with No Active Market with Identical Characteristics [Member] | Municipal bonds-taxable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	16,660	32,354
Recurring Basis [Member] | Significant Unobservable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	1,168	748
Stock warrants		2
Recurring Basis [Member] | Significant Unobservable Inputs [Member] | Equity security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	450
Recurring Basis [Member] | Significant Unobservable Inputs [Member] | Municipal bonds-tax exempt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	718	748
Recurring Basis [Member] | Collateralized mortgage obligations [Member] | Significant Observable Inputs with No Active Market with Identical Characteristics [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	$ 196,211	$ 127,693

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Share-Based Compensation - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation expense	$ 695,000	$ 197,000	$ 1,747,000	$ 387,000
Related tax benefits on non-qualified stock options	$ 317,000	$ 0	$ 500,000	$ 32,000
Number of shares, stock options exercised	687	38,437	34,382	40,678
Restricted stock awards, continuous employment period for vesting of grant			Three to five years

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Accumulated Other Comprehensive Income - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Accumulated Other Comprehensive Income [Line Items]
Net realized gain (loss) on redemption or sale of investment securities	$ 67,000	$ 611,000	$ 1,852,000	$ 923,000
Net unrealized gain (loss) on available-for-sale securities and interest only strip	2,800,000	5,500,000	6,200,000	9,000,000
Net gain on sales of investment securities	67,000	611,000	1,852,000	923,000
Recognized in earnings resulting from the redemption of investment securities	23,000	899,000	498,000	2,400,000
Other-than-temporary impairment loss on investment securities			0		0
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income [Line Items]
Net gain on sales of investment securities	67,000	611,000	1,800,000	923,000
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Other-than-Temporary Impairment [Member]
Accumulated Other Comprehensive Income [Line Items]
Other-than-temporary impairment loss on investment securities		$ 899,000		$ 2,400,000

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Loans - Credit Quality of PCI Loan (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	$ 2,675,959	$ 2,159,271
Real estate loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	2,411,154	1,921,659
Real estate loans [Member] | Retail [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	651,801
Real estate loans [Member] | Hotel/Motel [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	466,611
Real estate loans [Member] | Gas station [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	358,455
Real estate loans [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	821,411
Real estate loans [Member] | Residential property [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	108,730
Commercial and industrial loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	235,898	203,547
Commercial and industrial loans [Member] | Commercial term [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	119,525
Consumer loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	28,907	34,065
PCI Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	67,024
PCI Loans [Member] | Real estate loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	66,616
PCI Loans [Member] | Real estate loans [Member] | Retail [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	15,940
PCI Loans [Member] | Real estate loans [Member] | Hotel/Motel [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	14,206
PCI Loans [Member] | Real estate loans [Member] | Gas station [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	18,069
PCI Loans [Member] | Real estate loans [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	15,715
PCI Loans [Member] | Real estate loans [Member] | Residential property [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	2,686
PCI Loans [Member] | Commercial and industrial loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	350
PCI Loans [Member] | Commercial and industrial loans [Member] | Commercial term [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	350
PCI Loans [Member] | Consumer loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	58
Pass/Pass-Watch (Grade 0-4) [Member] | PCI Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	15,541
Pass/Pass-Watch (Grade 0-4) [Member] | PCI Loans [Member] | Real estate loans [Member] | Retail [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	2,939
Pass/Pass-Watch (Grade 0-4) [Member] | PCI Loans [Member] | Real estate loans [Member] | Hotel/Motel [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	248
Pass/Pass-Watch (Grade 0-4) [Member] | PCI Loans [Member] | Real estate loans [Member] | Gas station [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	10,200
Pass/Pass-Watch (Grade 0-4) [Member] | PCI Loans [Member] | Real estate loans [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	2,154
Criticized (Grade 5) [Member] | PCI Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	1,420
Criticized (Grade 5) [Member] | PCI Loans [Member] | Real estate loans [Member] | Retail [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	215
Criticized (Grade 5) [Member] | PCI Loans [Member] | Real estate loans [Member] | Gas station [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	1,205
Classified (Grade 6-7) [Member] | PCI Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	50,063
Classified (Grade 6-7) [Member] | PCI Loans [Member] | Real estate loans [Member] | Retail [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	12,786
Classified (Grade 6-7) [Member] | PCI Loans [Member] | Real estate loans [Member] | Hotel/Motel [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	13,958
Classified (Grade 6-7) [Member] | PCI Loans [Member] | Real estate loans [Member] | Gas station [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	6,664
Classified (Grade 6-7) [Member] | PCI Loans [Member] | Real estate loans [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	13,561
Classified (Grade 6-7) [Member] | PCI Loans [Member] | Real estate loans [Member] | Residential property [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	2,686
Classified (Grade 6-7) [Member] | PCI Loans [Member] | Commercial and industrial loans [Member] | Commercial term [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	350
Classified (Grade 6-7) [Member] | PCI Loans [Member] | Consumer loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total PCI loans	$ 58

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Segment Reporting

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

Note 17 — Segment Reporting

Through our branch network and lending units, we provide a broad range of financial services to individuals and companies. These services include demand, time and savings deposits; and commercial and industrial, real estate and consumer lending. While our chief decision makers monitor the revenue streams of our various products and services, operations are managed and financial performance is evaluated on a company-wide basis. Accordingly, we consider all of our operations to be aggregated in one reportable operating segment.

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Investment Securities - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Investment Securities [Line Items]
Other-than-temporary impairment charge			$ 0		$ 0
Impairment charges on securities in continuous unrealized loss position for 12 months or longer	0		0		0
Net realized gain (loss) on redemption or sale of investment securities	67,000	611,000	1,852,000	923,000
Recognized in earnings resulting from the redemption of investment securities	23,000	899,000	498,000	2,400,000
Investment securities available-for-sale, carrying values	1,128,624,000		1,128,624,000		530,926,000
Collateralized mortgage obligations [Member]
Investment Securities [Line Items]
Investment securities available-for-sale, carrying values	196,211,000		196,211,000		127,693,000
Mortgage-backed securities [Member]
Investment Securities [Line Items]
Investment securities available-for-sale, carrying values	584,157,000		584,157,000		217,059,000
Mortgage-backed securities [Member] | Collateralized mortgage obligations [Member]
Investment Securities [Line Items]
contractual maturities			2064
Securities Pledged as Collateral [Member]
Investment Securities [Line Items]
Investment securities available-for-sale, carrying values	$ 79,900,000		$ 79,900,000		$ 47,600,000

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Acquisition - Business Acquisition, Unaudited Proforma Result of Operation Information (Detail) (Central Bancorp, Inc [Member], USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Central Bancorp, Inc [Member]
Loans At Acquisition Date [Line Items]
Pro forma revenues (net interest income plus noninterest income)	$ 62,427	$ 55,727	$ 170,923	$ 182,135
Pro forma net income from continuing operations	$ 18,359	$ 12,826	$ 43,546	$ 47,201
Pro forma earnings per share from continuing operations:
Basic	$ 0.58	$ 0.41	$ 1.37	$ 1.49
Diluted	$ 0.57	$ 0.40	$ 1.36	$ 1.49

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Stockholders' Equity - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended	9 Months Ended
	Jul. 27, 2010	Sep. 30, 2014
Stockholders Equity Note [Line Items]
Number of shares of common stock to be purchased by issuing warrants	250,000
Exercise price of stock warrants	$ 9.60	$ 9.60
Date from which warrants or rights exercisable		Oct. 14, 2010
Warrants expiration date		Oct. 14, 2015
Fair value of warrants outstanding	$ 2.0
Outstanding stock warrants		0
Stock warrants [Member]
Stockholders Equity Note [Line Items]
Percentage of weighted average expected stock volatility for warrant	111.46%
Contract term of expected life assumption		5 years
Percentage of risk free rate for warrants	2.07%
Dividend yield	0.00%

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2014

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:

	2014								2013
	(Numerator)			(Denominator)					(Numerator)		(Denominator)
	Net Income			Weighted- Average Shares		Per Share Amount			Net Income		Weighted- Average Shares		Per Share Amount
	(In thousands, except share and per share data)
Three months ended September 30:
Basic EPS
Income from continuing operations, net of taxes	$	13,264			31,708,581	$	0.42		$	10,315		31,621,049	$	0.33
Income from discontinued operations, net of taxes		—			31,708,581		—			70		31,621,049		—
Basic EPS	$	13,264			31,708,581	$	0.42		$	10,385		31,621,049	$	0.33
Effect of dilutive securities - options, warrants and unvested restricted stock		—			292,838		—			—		111,955		—
Diluted EPS
Income from continuing operations, net of taxes	$	13,264			32,001,419	$	0.41		$	10,315		31,733,004	$	0.33
Income from discontinued operations, net of taxes		—			32,001,419		—			70		31,733,004		—
Diluted EPS	$	13,264			32,001,419	$	0.41		$	10,385		31,733,004	$	0.33
Nine months ended September 30:
Basic EPS
Income from continuing operations, net of taxes	$	35,764			31,683,288	$	1.13		$	29,769		31,583,897	$	0.94
(Loss) income from discontinued operations, net of taxes		(444	)		31,683,288		(0.02	)		161		31,583,897		0.01
Basic EPS	$	35,320			31,683,288	$	1.11		$	29,930		31,583,897	$	0.95
Effect of dilutive securities - options, warrants and unvested restricted stock		—			284,588		—			—		68,898		—
Diluted EPS
Income from continuing operations, net of taxes	$	35,764			31,967,876	$	1.12		$	29,769		31,652,795	$	0.94
(Loss) income from discontinued operations, net of taxes		(444	)		31,967,876		(0.02	)		161		31,652,795		0.01
Diluted EPS	$	35,320			31,967,876	$	1.10		$	29,930		31,652,795	$	0.95

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Investment Securities - Available for Sale Securities, Continuous Unrealized Loss Position, Fair value (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014 Security	Dec. 31, 2013 Security
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ 4,546	$ 10,607
Available-for-Sale Within One Year, Estimated Fair Value	763,346	366,638
Available-for-Sale Within One Year, Number of Securities	144	124
Available-for-Sale More than One Year, Gross Unrealized Loss	6,689	8,362
Available-for-Sale More than One Year, Estimated Fair Value	181,462	107,384
Available-for-Sale More than One Year, Number of Securities	73	45
Available-for-Sale, Gross Unrealized Loss	11,235	18,969
Available-for-Sale, Estimated Fair Value	944,808	474,022
Available-for-Sale, Number of Securities	217	169
Municipal bonds-taxable [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	9	787
Available-for-Sale Within One Year, Estimated Fair Value	2,238	22,817
Available-for-Sale Within One Year, Number of Securities	2	16
Available-for-Sale More than One Year, Gross Unrealized Loss	138	293
Available-for-Sale More than One Year, Estimated Fair Value	5,511	3,813
Available-for-Sale More than One Year, Number of Securities	5	4
Available-for-Sale, Gross Unrealized Loss	147	1,080
Available-for-Sale, Estimated Fair Value	7,749	26,630
Available-for-Sale, Number of Securities	7	20
U.S. treasury securities [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	1	1
Available-for-Sale Within One Year, Estimated Fair Value	163	19,996
Available-for-Sale Within One Year, Number of Securities	1	2
Available-for-Sale More than One Year, Number of Securities
Available-for-Sale, Gross Unrealized Loss	1	1
Available-for-Sale, Estimated Fair Value	163	19,996
Available-for-Sale, Number of Securities	1	2
Municipal bonds-tax exempt [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss		30
Available-for-Sale Within One Year, Estimated Fair Value		8,562
Available-for-Sale Within One Year, Number of Securities		5
Available-for-Sale More than One Year, Number of Securities
Available-for-Sale, Gross Unrealized Loss		30
Available-for-Sale, Estimated Fair Value		8,562
Available-for-Sale, Number of Securities		5
Collateralized mortgage obligations [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	914	2,353
Available-for-Sale Within One Year, Estimated Fair Value	145,816	87,026
Available-for-Sale Within One Year, Number of Securities	30	27
Available-for-Sale More than One Year, Gross Unrealized Loss	805	864
Available-for-Sale More than One Year, Estimated Fair Value	21,188	14,657
Available-for-Sale More than One Year, Number of Securities	9	7
Available-for-Sale, Gross Unrealized Loss	1,719	3,217
Available-for-Sale, Estimated Fair Value	167,004	101,683
Available-for-Sale, Number of Securities	39	34
Mortgage-backed securities [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	2,947	3,437
Available-for-Sale Within One Year, Estimated Fair Value	422,318	170,324
Available-for-Sale Within One Year, Number of Securities	73	51
Available-for-Sale More than One Year, Gross Unrealized Loss	1,764	2,589
Available-for-Sale More than One Year, Estimated Fair Value	60,057	30,947
Available-for-Sale More than One Year, Number of Securities	22	12
Available-for-Sale, Gross Unrealized Loss	4,711	6,026
Available-for-Sale, Estimated Fair Value	482,375	201,271
Available-for-Sale, Number of Securities	95	63
U.S. government agency securities [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	537	3,942
Available-for-Sale Within One Year, Estimated Fair Value	85,948	50,932
Available-for-Sale Within One Year, Number of Securities	22	19
Available-for-Sale More than One Year, Gross Unrealized Loss	3,119	3,374
Available-for-Sale More than One Year, Estimated Fair Value	71,843	32,606
Available-for-Sale More than One Year, Number of Securities	26	12
Available-for-Sale, Gross Unrealized Loss	3,656	7,316
Available-for-Sale, Estimated Fair Value	157,791	83,538
Available-for-Sale, Number of Securities	48	31
SBA loan pool securities [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	27
Available-for-Sale Within One Year, Estimated Fair Value	87,088
Available-for-Sale Within One Year, Number of Securities	15
Available-for-Sale More than One Year, Gross Unrealized Loss	673	969
Available-for-Sale More than One Year, Estimated Fair Value	12,037	12,629
Available-for-Sale More than One Year, Number of Securities	4	4
Available-for-Sale, Gross Unrealized Loss	700	969
Available-for-Sale, Estimated Fair Value	99,125	12,629
Available-for-Sale, Number of Securities	19	4
Corporate bonds [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss		9
Available-for-Sale Within One Year, Estimated Fair Value		5,024
Available-for-Sale Within One Year, Number of Securities		1
Available-for-Sale More than One Year, Gross Unrealized Loss	89	177
Available-for-Sale More than One Year, Estimated Fair Value	7,902	11,803
Available-for-Sale More than One Year, Number of Securities	2	3
Available-for-Sale, Gross Unrealized Loss	89	186
Available-for-Sale, Estimated Fair Value	7,902	16,827
Available-for-Sale, Number of Securities	2	4
Other securities [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	111	48
Available-for-Sale Within One Year, Estimated Fair Value	19,775	1,957
Available-for-Sale Within One Year, Number of Securities	1	3
Available-for-Sale More than One Year, Gross Unrealized Loss	101	96
Available-for-Sale More than One Year, Estimated Fair Value	2,924	929
Available-for-Sale More than One Year, Number of Securities	5	3
Available-for-Sale, Gross Unrealized Loss	212	144
Available-for-Sale, Estimated Fair Value	$ 22,699	$ 2,886
Available-for-Sale, Number of Securities	6	6

XML

Loans - Troubled Debt Restructurings, Disaggregated by Loan Class (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014 SecurityLoan	Sep. 30, 2013 SecurityLoan	Sep. 30, 2014 SecurityLoan	Sep. 30, 2013 SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of Loans	3	12	14	23
Pre-Modification Outstanding Recorded Investment	$ 4,501	$ 3,133	$ 8,474	$ 5,809
Post-Modification Outstanding Recorded Investment	4,576	3,107	8,370	5,189
Consumer loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans				1
Pre-Modification Outstanding Recorded Investment				149
Post-Modification Outstanding Recorded Investment				149
Real estate loans [Member] | Hotel/Motel [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans		1		1
Pre-Modification Outstanding Recorded Investment		1,000		1,000
Post-Modification Outstanding Recorded Investment		1,000		1,000
Real estate loans [Member] | Gas station [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	1	1	1	1
Pre-Modification Outstanding Recorded Investment	2,014	107	2,040	113
Post-Modification Outstanding Recorded Investment	1,991	91	1,991	91
Real estate loans [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	1	2
Pre-Modification Outstanding Recorded Investment	395	1,011
Post-Modification Outstanding Recorded Investment	385	1,014
Real estate loans [Member] | Retail [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans			1
Pre-Modification Outstanding Recorded Investment			2,002
Post-Modification Outstanding Recorded Investment			1,856
Real estate loans [Member] | Residential property [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans			1
Pre-Modification Outstanding Recorded Investment			317
Post-Modification Outstanding Recorded Investment			311
Real estate loans [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans			3	3
Pre-Modification Outstanding Recorded Investment			1,422	1,176
Post-Modification Outstanding Recorded Investment			1,386	1,144
Commercial and industrial loans [Member] | Commercial term [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans		8	5	15
Pre-Modification Outstanding Recorded Investment		1,015	327	1,787
Post-Modification Outstanding Recorded Investment		1,002	263	1,625
Commercial and industrial loans [Member] | Commercial lines of credit [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	1		3
Pre-Modification Outstanding Recorded Investment	2,092		2,366
Post-Modification Outstanding Recorded Investment	2,200		2,563
Commercial and industrial loans [Member] | International loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans				2
Pre-Modification Outstanding Recorded Investment				1,584
Post-Modification Outstanding Recorded Investment				$ 1,180

XML

Loans - Analysis of Past Due Loans, Disaggregated by Loan Class (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 19,200	$ 16,300
Total Loans	2,675,959		2,159,271
Accruing 90 Days or More Past Due	15
Real estate loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	2,411,154		1,921,659
Real estate loans [Member] | Hotel/Motel [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	466,611
Real estate loans [Member] | Gas station [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	358,455
Real estate loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	4,146
Real estate loans [Member] | Residential property [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	108,730
Commercial and industrial loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	235,898		203,547
Commercial and industrial loans [Member] | Commercial term [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	119,525
Commercial and industrial loans [Member] | Commercial lines of credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	75,246
Commercial and industrial loans [Member] | International loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	41,127
Consumer loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	28,907		34,065
Non-PCI Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	10,675	3,607
60-89 Days Past Due	2,645	4,072
90 Days or More Past Due	5,916	8,595
Total Past Due	19,236	16,274
Current	2,589,699	2,217,815
Total Loans	2,608,935	2,234,089
Accruing 90 Days or More Past Due	15
Non-PCI Loans [Member] | Real estate loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	2,344,538	1,969,798
Non-PCI Loans [Member] | Real estate loans [Member] | Commercial Real Estate Retails [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,927	202
60-89 Days Past Due	146	426
90 Days or More Past Due	182	2,196
Total Past Due	2,255	2,824
Current	633,606	540,794
Total Loans	635,861	543,618
Non-PCI Loans [Member] | Real estate loans [Member] | Hotel/Motel [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	52	1,087
60-89 Days Past Due	733
90 Days or More Past Due	1,203	1,532
Total Past Due	1,988	2,619
Current	450,417	320,308
Total Loans	452,405	322,927
Non-PCI Loans [Member] | Real estate loans [Member] | Gas station [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	4,781	141
60-89 Days Past Due	794	410
90 Days or More Past Due	544	153
Total Past Due	6,119	704
Current	334,267	291,853
Total Loans	340,386	292,557
Non-PCI Loans [Member] | Real estate loans [Member] | Commercial Real Estate Others [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,867	423
60-89 Days Past Due	67	2,036
90 Days or More Past Due	380	839
Total Past Due	2,314	3,298
Current	803,382	728,320
Total Loans	805,696	731,618
Accruing 90 Days or More Past Due	15
Non-PCI Loans [Member] | Real estate loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	4,146
Total Loans	4,146
Non-PCI Loans [Member] | Real estate loans [Member] | Residential property [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	113
60-89 Days Past Due	121	122
90 Days or More Past Due	486	279
Total Past Due	720	401
Current	105,324	78,677
Total Loans	106,044	79,078
Non-PCI Loans [Member] | Commercial and industrial loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	235,548	231,786
Non-PCI Loans [Member] | Commercial and industrial loans [Member] | Commercial term [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,410	1,443
60-89 Days Past Due	587	886
90 Days or More Past Due	2,873	3,269
Total Past Due	4,870	5,598
Current	114,305	118,793
Total Loans	119,175	124,391
Non-PCI Loans [Member] | Commercial and industrial loans [Member] | Commercial lines of credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	274
60-89 Days Past Due	197	150
90 Days or More Past Due		250
Total Past Due	471	400
Current	74,775	70,642
Total Loans	75,246	71,042
Non-PCI Loans [Member] | Commercial and industrial loans [Member] | International loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	251
Total Past Due	251
Current	40,876	36,353
Total Loans	41,127	36,353
Non-PCI Loans [Member] | Consumer loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due		311
60-89 Days Past Due		42
90 Days or More Past Due	248	77
Total Past Due	248	430
Current	28,601	32,075
Total Loans	$ 28,849	$ 32,505

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Sale of Insurance Subsidiaries and Discontinued Operations - Additional Information (Detail) (USD $)	3 Months Ended			9 Months Ended			3 Months Ended	6 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 Chun Ha and All World To Chunha Holdings Corporation [Member] Installment Subsidiary	Mar. 31, 2014 Discontinued operations [Member]	Jun. 30, 2014 Discontinued operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total sale price						$ 3,500,000
Sale consideration received						2,000,000
Reduction by cash and cash equivalents included in net assets						1,600,000
Net proceeds from sales of subsidiaries				398,000		398,000
Consideration due						1,500,000
Discontinued operations held for sale, Description						The total sales price was $3.5 million, of which $2.0 million was paid upon signing. The $2.0 million was reduced by $1.6 million cash and cash equivalents included in net assets of Chun-Ha and All World, resulting in $398,000 net cash proceeds. The remaining $1.5 million will be payable in three equal installments on each anniversary of the closing date through June 30, 2017.
Number of installments payable						3
Number of subsidiaries sold						2
Net loss from discontinued operations		467,000	(70,000)	444,000	(161,000)
Income from discontinued operation per diluted share		$ 0.01		$ (0.02)	$ 0.01
Gain on disposal				51,000
Income tax benefit from operating loss				4,000
Capital gain tax				470,000
Operating loss		(52,000)	112,000	(14,000)	242,000
Noninterest income	14,321,000		6,059,000	25,237,000	19,945,000		1,300,000	2,700,000
Noninterest expense	$ 26,763,000		$ 17,636,000	$ 63,595,000	$ 53,898,000		$ 1,400,000	$ 2,700,000

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Basis of Presentation

Note 1 — Basis of Presentation

Hanmi Financial Corporation (“Hanmi Financial,” the “Company,” “we” or “us”) is a Delaware corporation and is subject to the Bank Holding Company Act of 1956, as amended. Hanmi Bank (the “Bank”), a California state chartered bank, is a wholly owned subsidiary of Hanmi Financial. During the second quarter of 2014, we disposed of two subsidiaries, Chun-Ha Insurance Services, Inc., a California corporation (“Chun-Ha”), and All World Insurance Services, Inc., a California corporation (“All World”). See “Note 4 — Sale of Insurance Subsidiaries and Discontinued Operations.” On August 31, 2014, Hanmi Financial completed its acquisition of Central Bancorp, Inc. See “Note 2 — Acquisition.”

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 September 30, 2014, but are not necessarily indicative of the results that will be reported for the entire year or any other interim period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. The aforementioned unaudited consolidated financial statements are in conformity with GAAP. Such interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. The interim information should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the “2013 Annual Report on Form 10-K”).

The preparation of interim 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. Actual results could differ from those estimates. Material estimates subject to change include, among other items, the fair value estimates of assets acquired and liabilities assumed in Central Bancorp, Inc. (“CBI”) acquisition as discussed in “Note 2 – Acquisition.” The acquired assets and assumed liabilities of Central Bancorp, Inc. were measured at their estimated fair values. The Company made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and assumed liabilities.

Descriptions of our significant accounting policies are included in “Note 1 — Summary of Significant Accounting Policies” in our 2013 Annual Report on Form 10-K. During the three months ended June 30, 2014, we adopted an accounting policy related to accounting for investments in low-income housing tax credit according to Financial Accounting Standards Board (“FASB”) ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects. See “Note 3 — Accounting for Investments in Qualified Affordable Housing Projects.” During the three months ended September 30, 2014, we completed acquisition of CBI and our acquisition was accounted for using the acquisition method of accounting. See “Note 2 —Acquisition” for more information about the CBI acquisition and “Note 6 — Loans” for accounting policies regarding purchased loans.

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Loans - Information on Impaired Loans, Disaggregated by Loan Class (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 49,382		$ 49,382		$ 53,066
Unpaid Principal Balance	53,069		53,069		56,563
With No Related Allowance Recorded	38,177		38,177		33,292
With an Allowance Recorded	11,205		11,205		19,774
Related Allowance	5,784		5,784		6,468
Average Recorded Investment	49,827	43,767	49,632	46,622
Interest Income Recognized	796	900	2,353	2,722
Real estate loans [Member] | Retail [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	4,443		4,443		6,244
Unpaid Principal Balance	4,543		4,543		6,332
With No Related Allowance Recorded	1,940		1,940		3,767
With an Allowance Recorded	2,503		2,503		2,477
Related Allowance	256		256		305
Average Recorded Investment	4,456	2,723	5,682	3,703
Interest Income Recognized	36	27	215	105
Real estate loans [Member] | Hotel/Motel [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	4,042		4,042		6,200
Unpaid Principal Balance	4,855		4,855		6,940
With No Related Allowance Recorded	4,042		4,042		4,668
With an Allowance Recorded					1,532
Related Allowance	1,261		1,261		1,183
Average Recorded Investment	4,206	6,377	4,149	4,752
Interest Income Recognized	102	127	232	384
Real estate loans [Member] | Gas station [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	14,152		14,152		9,389
Unpaid Principal Balance	14,681		14,681		9,884
With No Related Allowance Recorded	13,692		13,692		8,592
With an Allowance Recorded	460		460		797
Related Allowance	166		166		209
Average Recorded Investment	14,181	8,777	12,023	8,775
Interest Income Recognized	218	229	587	569
Real estate loans [Member] | Other [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	9,856		9,856		11,451
Unpaid Principal Balance	11,266		11,266		12,882
With No Related Allowance Recorded	8,518		8,518		9,555
With an Allowance Recorded	1,338		1,338		1,896
Related Allowance	344		344		351
Average Recorded Investment	9,898	8,699	10,716	9,512
Interest Income Recognized	232	243	682	779
Real estate loans [Member] | Residential property [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	3,161		3,161		2,678
Unpaid Principal Balance	3,292		3,292		2,773
With No Related Allowance Recorded	3,161		3,161		2,678
Average Recorded Investment	3,173	2,992	2,853	3,026
Interest Income Recognized	30	33	87	92
Commercial and industrial loans [Member] | Commercial term [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	7,958		7,958		13,834
Unpaid Principal Balance	8,408		8,408		14,308
With No Related Allowance Recorded	1,914		1,914		2,929
With an Allowance Recorded	6,044		6,044		10,905
Related Allowance	3,469		3,469		3,806
Average Recorded Investment	8,118	10,581	10,007	12,751
Interest Income Recognized	126	191	443	692
Commercial and industrial loans [Member] | Commercial lines of credit [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	2,874		2,874		614
Unpaid Principal Balance	2,976		2,976		686
With No Related Allowance Recorded	2,692		2,692		173
With an Allowance Recorded	182		182		441
Related Allowance	183		183		252
Average Recorded Investment	2,884	840	1,447	1,137
Interest Income Recognized	36	23	61	47
Commercial and industrial loans [Member] | International loans [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,138		1,138		1,087
Unpaid Principal Balance	1,138		1,138		1,087
With No Related Allowance Recorded	460		460		286
With an Allowance Recorded	678		678		801
Related Allowance	105		105		78
Average Recorded Investment	1,146	1,197	1,136	1,342
Consumer loans [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,758		1,758		1,569
Unpaid Principal Balance	1,910		1,910		1,671
With No Related Allowance Recorded	1,758		1,758		644
With an Allowance Recorded					925
Related Allowance					284
Average Recorded Investment	1,765	1,581	1,619	1,624
Interest Income Recognized	$ 16	$ 27	$ 46	$ 54

XML

Accounting for Investments in Qualified Affordable Housing Projects - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 01, 2012	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Adjusted Earnings Before Interest Taxes Depreciation And Amortization And Other Non Cash Items [Abstract]
Cumulative effect of retrospective application of accounting principle	$ 1,100,000
Increased in net income			135,000		51,000
Impairment of investments				0		0
Investment in low income housing		21,800,000		21,800,000		3,000,000
Unfunded commitments on low income housing		12,600,000		12,600,000		0
Income tax expense		592,000		1,000,000
Tax credit and other benefit received from tax expenses		$ 821,000		$ 1,400,000

XML

Accounting for Investments in Qualified Affordable Housing Projects (Tables)

9 Months Ended

Sep. 30, 2014

Accounting Changes and Error Corrections [Abstract]

Summary of Change in Accounting Principle on Balance Sheets

Hanmi Financial Corporations and Subsidiaries

Consolidated Balance Sheet (Unaudited)

	As of December 31, 2013
	As Previously Reported		Effect of Change in Accounting Principle			As Adjusted
	(In thousands)
Assets
Cash and cash equivalents	$	179,357	$	—		$	179,357
Securities available for sale		530,926		—			530,926
Loans receivable		2,177,498		—			2,177,498
Income tax assets		63,536		305			63,841
Other assets		104,222		(1,465	)		102,757
Total assets	$	3,055,539	$	(1,160	)	$	3,054,379
Liabilities and stockholders’ equity
Liabilities	$	2,654,302	$	—		$	2,654,302
Stockholders’ equity		401,237		(1,160	)		400,077
Total liabilities and stockholders’ equity	$	3,055,539	$	(1,160	)	$	3,054,379

Summary of Change in Accounting Principle on Statements of Income

Hanmi Financial Corporations and Subsidiaries

Consolidated Statements of Income (Unaudited)

	For the Three Months Ended September 30, 2013
	As Previously Reported		Effect of Change in Accounting Principle			As Adjusted
	(In thousands, except per share data)
Interest and dividend income	$	31,627	$	—		$	31,627
Interest expense		3,153		—			3,153
Net interest income	$	28,474	$	—		$	28,474
Noninterest income		6,059		—			6,059
Noninterest expense		17,811		(175	)		17,636
Income before provision for income taxes	$	16,722	$	175		$	16,897
Provision for income taxes		6,542		40			6,582
Income from continuing operations	$	10,180	$	135		$	10,315
Earnings per share from continuing operations
Basic	$	0.32	$	0.01		$	0.33
Diluted	$	0.32	$	0.01		$	0.33

	For the Nine Months Ended September 30, 2013
	As Previously Reported		Effect of Change in Accounting Principle			As Adjusted
	(In thousands, except per share data)
Interest and dividend income	$	91,401	$	—		$	91,401
Interest expense		10,169		—			10,169
Net interest income	$	81,232	$	—		$	81,232
Noninterest income		19,945		—			19,945
Noninterest expense		54,451		(553	)		53,898
Income before provision for income taxes	$	46,726	$	553		$	47,279
Provision for income taxes		17,008		502			17,510
Income from continuing operations	$	29,718	$	51		$	29,769
Earnings per share from continuing operations
Basic	$	0.94	$	—		$	0.94
Diluted	$	0.94	$	—		$	0.94

Summary of Change in Accounting Principle on Statements of Cash Flows

Hanmi Financial Corporations and Subsidiaries

Consolidated Statement of Cash Flows (Unaudited)

	For the Nine Months Ended September 30, 2013
	As Previously Reported			Effect of Change in Accounting Principle			As Adjusted
	(In thousands)
Cash flows from operating activities:
Net income	$	29,879		$	51		$	29,930
Total adjustment in net income		18,098			(51	)		18,047
Net cash provided by operating activities	$	47,977		$	—		$	47,977
Cash flows from investing activities:
Net cash used in investing activities		(71,768	)		—			(71,768	)
Cash flows from financing activities:
Net cash used in financing activities		(50,402	)		—			(50,402	)
Net decrease in cash and cash equivalents	$	(74,193	)	$	—		$	(74,193	)
Cash and cash equivalents at beginning of period		268,047			—			268,047
Cash and cash equivalents at end of period	$	193,854		$	—		$	193,854

XML

Acquisition (Tables)

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Summary Of Consideration Paid, Provisional Estimate Of Fair Value Of Assets Acquired and Liabilities Assumed

In connection with the acquisition, the consideration paid, the provisional estimate of the fair value of the assets acquired and the liabilities assumed as of August 31, 2014 are summarized in the following table:

	(In thousands)
Consideration paid:
CBI Stockholders	$	50,000
Redemption of preferred stock and cumulative unpaid dividends		28,675
Accrued interest on subordinated debentures		1,566
		80,241
Assets acquired:
Cash and cash equivalents		197,209
Securities available for sale		663,497
Loans		294,032
Premises and equipment		17,735
Other real estate owned		28,027
Income tax assets, net		8,800
Core deposit intangible		2,213
FDIC loss sharing assets		9,692
Bank-owned life insurance		18,296
Other assets		16,428
Total assets acquired		1,255,929
Liabilities assumed:
Deposits		1,098,997
Subordinated debentures		18,473
Rescinded stock obligation		15,720
FHLB advances		10,000
Other liabilities		25,905
Total liabilities assumed		1,169,095
Total identifiable net assets	$	86,834
Bargain purchase gain, net of deferred taxes	$	6,593

Summary Of Accretable Yield On Purchased Credit Impaired Loans Acquired

The following table summarizes the accretable yield on the purchased credit impaired loans acquired from the CBI merger at August 31, 2014.

	(In thousands)
Undiscounted contractual cash flows	$	117,301
Nonaccretable discount		(18,565	)
Undiscounted cash flow to be collected		98,736
Estimated fair value of PCI loans		75,878
Accretable yield	$	22,858

Business Acquisition, Unaudited Proforma Result of Operation Information

The following table presents our unaudited pro forma results of operations for the periods presented as if the CBI acquisition had been completed on January 1, 2013. The unaudited pro forma results of operations include the historical accounts of Hanmi Financial and CBI and pro forma adjustments as may be required, including the amortization of intangibles with definite lives and the amortization or accretion of any premiums or discounts arising from fair value adjustments for assets acquired and liabilities assumed. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of our future operating results or operating results that would have occurred had the CBI acquisition been completed at the beginning of 2013. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(In thousands, except per share data)
Pro forma revenues (net interest income plus noninterest income)	$	62,427	$	55,727	$	170,923	$	182,135
Pro forma net income from continuing operations	$	18,359	$	12,826	$	43,546	$	47,201
Pro forma earnings per share from continuing operations:
Basic	$	0.58	$	0.41	$	1.37	$	1.49
Diluted	$	0.57	$	0.40	$	1.36	$	1.49

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Loans - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2014 Property	Sep. 30, 2013	Sep. 30, 2014 Property	Sep. 30, 2013	Dec. 31, 2013 Property
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 9,880,000		$ 9,880,000		$ 7,055,000
Loans receivable	2,628,091,000		2,628,091,000		2,177,498,000
Loans receivable reclassified as loans held for sale	0	0	0	8,010,000
Sale of loans held for sale	14,268,000	11,906,000	26,986,000	71,626,000
Allowance for off-balance sheet items	1,500,000	1,300,000	1,500,000	1,300,000
Loans on non-accrual status	24,003,000		24,003,000		25,877,000
Percentage decrease in loans on non-accrual status, excluding loans held for sale					7.20%
Delinquent loans (defined as 30 days or more past due)	19,200,000		19,200,000		16,300,000
Percentage increase in delinquent loans excluding loans held for sale					18.20%
Number of real estate properties	40		40		3
Other real estate owned, net	24,781,000		24,781,000		756,000
Net valuation adjustment			0		56,000
TDR loans receivable	26,400,000		26,400,000		30,000,000
Principal and interest due			6 months
Reserves relating to loans included in allowance for loan losses	3,700,000		3,700,000		2,800,000
Net carrying value	4,576,000	3,107,000	8,370,000	5,189,000
Number of loans restructured	3		14
Serviced loans sold to unaffiliated parties	341,600,000	330,400,000	341,600,000	330,400,000
Recoveries of previously charged-off and reimbursed Commercial SLA loans which needs to be reimbursed			80.00%
FDIC loss sharing asset	7,696,000		7,696,000
Single-family loans covered	3,700,000		3,700,000
Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Due period for considering loans as impaired			90 days
Central Bancorp, Inc [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other real estate owned, net	22,300,000		22,300,000
Securities Pledged as Collateral [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	872,200,000		872,200,000		568,700,000
Commercial Properties [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other real estate owned, net	20,200,000		20,200,000
Residential Properties [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other real estate owned, net	4,600,000		4,600,000
Loans and Finance Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 5,800,000		$ 5,800,000		$ 5,400,000

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Accounting for Investments in Qualified Affordable Housing Projects - Summary of Change in Accounting Principle on Balance Sheets (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
Assets
Cash and cash equivalents	$ 197,016	$ 179,357	$ 193,854	$ 268,047
Available-for-Sale, Estimated Fair Value	1,128,624	530,926
Loans receivable	2,628,091	2,177,498
Income tax assets	72,330	63,841
Other assets		102,757
Total assets	4,228,332	3,054,379
Liabilities and Stockholders' Equity
Liabilities	3,793,138	2,654,302
Stockholders' equity	435,194	400,077	388,725	378,364
Total liabilities and stockholders' equity	4,228,332	3,054,379
As Previously Reported [Member]
Assets
Cash and cash equivalents		179,357	193,854	268,047
Available-for-Sale, Estimated Fair Value		530,926
Loans receivable		2,177,498
Income tax assets		63,536
Other assets		104,222
Total assets		3,055,539
Liabilities and Stockholders' Equity
Liabilities		2,654,302
Stockholders' equity		401,237
Total liabilities and stockholders' equity		3,055,539
Effect of Change in Accounting Principle [Member]
Assets
Income tax assets		305
Other assets		(1,465)
Total assets		(1,160)
Liabilities and Stockholders' Equity
Stockholders' equity		(1,160)
Total liabilities and stockholders' equity		$ (1,160)

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Sale of Insurance Subsidiaries and Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Summarized Financial Information of Discontinued Operations

Summarized financial information for our discontinued operations related to Chun-Ha and All World are as follows:

	June 30, 2014		December 31, 2013
	(In thousands)
Cash and cash equivalents	$	1,602	$	1,396
Premises and equipment, net		90		79
Other intangible assets, net		1,089		1,171
Other assets		2,855		3,298
Total assets	$	5,636	$	5,944
Income tax payable	$	415	$	1,304
Accrued expenses and other liabilities		1,878		2,171
Total liabilities	$	2,293	$	3,475
Net assets of discontinued operations	$	3,343	$	2,469

	Three Months Ended September 30,		Nine Months Ended September 30,
	2013		2014			2013
			(In thousands)
Noninterest income (loss)	$	112	$	(14	)	$	242
Gain on disposal		—		51			—
Income before taxes	$	112	$	37		$	242
Provision for income taxes		42		481			81
Net income (loss) from discontinued operations	$	70	$	(444	)	$	161

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Realized Gains and Losses on Sales of Investment Securities

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

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014			2013
	(In thousands)
Gross realized gains on sales of investment securities	$	67	$	619		$	1,853		$	932
Gross realized losses on sales of investment securities		—		(8	)		(1	)		(9	)
Net realized gains on sales of investment securities	$	67	$	611		$	1,852		$	923
Proceeds from sales of investment securities	$	9,778	$	26,661		$	140,855		$	51,425

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Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:
Net income	$ 35,320,000	$ 29,930,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment	1,418,000	1,525,000
Amortization of premiums and accretion of discounts on investment securities, net	2,754,000	1,961,000
Amortization of other intangible assets	33,000	123,000
Amortization of servicing assets	1,318,000	1,152,000
Amortization of investment in affordable housing partnerships	592,000	552,000
Amortization of subordinated debentures	36,000
Share-based compensation expense	1,747,000	387,000
Negative provision for credit losses	(7,166,000)
Gain on sales of investment securities	(1,852,000)	(923,000)
Gain on sales of loans	(2,267,000)	(5,507,000)
Bargain purchase gain on acquisition	(6,593,000)
Gain (loss) on sales of other real estate owned	2,000	(71,000)
Loss on sales of subsidiaries	419,000
Valuation adjustment on other real estate owned		7,000
Origination of loans held for sale	(34,798,000)	(63,113,000)
Proceeds from sales of SBA loans guaranteed portion	29,826,000	77,338,000
Change in restricted cash		5,350,000
Change in accrued interest receivable	609,000	624,000
Change in FDIC loss sharing asset	1,996,000
Change in bank-owned life insurance	(672,000)	(693,000)
Change in prepaid expenses	(1,338,000)	98,000
Change in other assets	(4,462,000)	767,000
Change in income tax assets	(3,066,000)	5,038,000
Change in accrued interest payable	(821,000)	(9,070,000)
Change in stock warrants payable		80,000
Change in other liabilities	11,670,000	2,422,000
Net cash provided by operating activities	24,705,000	47,977,000
Cash flows from investing activities:
Proceeds from redemption of federal home loan bank and federal reserve bank stock		3,740,000
Proceeds from matured or called securities available for sale	61,145,000	62,104,000
Proceeds from sales of securities available for sale	135,834,000	41,560,000
Proceeds from sales of other real estate owned	9,932,000	1,645,000
Proceeds from sales of loans held for sale		5,380,000
Proceeds from insurance settlement on bank-owned life insurance		279,000
Cash acquired in acquisition, net of cash consideration paid	116,967,000
Net proceeds from sales of subsidiaries	398,000
Change in loans receivable	(157,988,000)	(131,169,000)
Purchases of securities available for sale	(124,442,000)	(53,762,000)
Purchases of premises and equipment	(739,000)	(567,000)
Purchases of federal reserve bank stock	(3,403,000)	(978,000)
Net cash provided by (used) in investing activities	37,704,000	(71,768,000)
Cash flows from financing activities:
Change in deposits	(13,168,000)	33,744,000
Change in short-term federal home loan bank advances	(25,135,000)
Redemption of Federal Home Loan Bank advances	(2,411,000)	(290,000)
Redemption of subordinated debentures		(82,406,000)
Proceeds from exercise of stock options	427,000	460,000
Proceeds from exercise of stock warrants		305,000
Cash dividends paid	(4,463,000)	(2,215,000)
Net cash used in financing activities	(44,750,000)	(50,402,000)
Net increase (decrease) in cash and cash equivalents	17,659,000	(74,193,000)
Cash and cash equivalents at beginning of year	179,357,000	268,047,000
Cash and cash equivalents at end of period	197,016,000	193,854,000
Cash paid during the period for:
Interest	10,750,000	19,239,000
Income taxes	20,930,000	11,910,000
Non-cash activities:
Transfer of loans receivable to other real estate owned	7,501,000	1,090,000
Transfer of loans receivable to loans held for sale	0	8,010,000
Transfer of loans held for sale to loans receivable		2,534,000
Note receivable from sale of insurance subsidiaries	1,394,000
Conversion of stock warrants into common stock	2,000	981,000
Income tax (expense) benefit related to items of other comprehensive income	(3,322,000)	7,176,000
Change in unrealized (gain) loss in accumulated other comprehensive income	(9,489,000)	16,140,000
Cash dividend declared	$ (2,231,000)

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Loans (Tables)

9 Months Ended

Sep. 30, 2014

Loans Receivable

Loans receivable consisted of the following as of the dates indicated:

	September 30, 2014								December 31,
	Non-PCI Loans			PCI Loans		Total			2013
	(In thousands)
Real estate loans:
Commercial property (1)
Retail	$	635,861		$	15,940	$	651,801		$	543,619
Hotel/Motel		452,405			14,206		466,611			322,927
Gas station		340,386			18,069		358,455			292,557
Other		805,696			15,715		821,411			731,617
Construction		4,146			—		4,146			—
Residential property		106,044			2,686		108,730			79,078
Total real estate loans		2,344,538			66,616		2,411,154			1,969,798
Commercial and industrial loans:
Commercial term		119,175			350		119,525			124,391
Commercial lines of credit		75,246			—		75,246			71,042
International loans		41,127			—		41,127			36,353
Total commercial and industrial loans		235,548			350		235,898			231,786
Consumer loans		28,849			58		28,907			32,505
Total gross loans		2,608,935			67,024		2,675,959			2,234,089
Allowance for loans losses		(51,179	)		—		(51,179	)		(57,555	)
Deferred loan costs		3,311			—		3,311			964
Loans receivable, net	$	2,561,067		$	67,024	$	2,628,091		$	2,177,498

⁽¹⁾ Includes owner-occupied property loans of $1.10 billion and $957.3 million as of September 30, 2014 and December 31, 2013, respectively.

Loans Receivable to Loans Held for Sale

The following table details the information on the sales and reclassifications of loans receivable to loans held for sale (excluding PCI loans) by portfolio segment for the three months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer		Total Non-PCI
	(In thousands)
September 30, 2014
Balance at beginning of period	$	2,568		$	1,274		$	—	$	3,842
Origination of loans held for sale		15,198			3,031			—		18,229
Sales of loans held for sale		(12,135	)		(2,133	)		—		(14,268	)
Principal payoffs and amortization		(20	)		(26	)		—		(46	)
Balance at end of period	$	5,611		$	2,146		$	—	$	7,757
September 30, 2013
Balance at beginning of period	$	2,137		$	416		$	—	$	2,553
Origination of loans held for sale		15,634			1,501			—		17,135
Reclassification from loans held for sale to loans receivable		(2,118	)		(416	)		—		(2,534	)
Sales of loans held for sale		(10,725	)		(1,181	)		—		(11,906	)
Principal payoffs and amortization		(20	)		—			—		(20	)
Balance at end of period	$	4,908		$	320		$	—	$	5,228

The following table details the information on the sales and reclassifications of loans receivable to loans held for sale (excluding PCI loans) by portfolio segment for the nine months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer		Total Non-PCI
	(In thousands)
September 30, 2014
Balance at beginning of period	$	—		$	—		$	—	$	—
Origination of loans held for sale		29,591			5,207			—		34,798
Sales of loans held for sale		(23,953	)		(3,033	)		—		(26,986	)
Principal payoffs and amortization		(27	)		(28	)		—		(55	)
Balance at end of period	$	5,611		$	2,146		$	—	$	7,757
September 30, 2013
Balance at beginning of period	$	7,977		$	329		$	—	$	8,306
Origination of loans held for sale		58,725			4,387			—		63,112
Reclassification from loans receivable to loans held for sale		7,593			416			—		8,009
Reclassification from loans held for sale to loans receivable		(2,118	)		(416	)		—		(2,534	)
Sales of loans held for sale		(67,235	)		(4,391	)		—		(71,626	)
Principal payoffs and amortization		(34	)		(5	)		—		(39	)
Balance at end of period	$	4,908		$	320		$	—	$	5,228

Allowance for Non-PCI Losses and Allowance for Off-Balance Sheet Items

Activity in the allowance for loan losses and allowance for off-balance sheet items was as follows for the periods indicated:

	As of and for the Three Months Ended						As of and for the Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	51,886		$	59,876		$	57,555		$	63,305
Charge-offs		(1,418	)		(4,610	)		(5,569	)		(11,124	)
Recoveries on loans previously charged off		663			2,383			6,656			4,964
Net loan (charge-offs) recoveries		(755	)		(2,227	)		1,087			(6,160	)
Provision (negative provision) charged to operating expense		48			(10	)		(7,463	)		494
Balance at end of period	$	51,179		$	57,639		$	51,179		$	57,639
Allowance for off-balance sheet items:
Balance at beginning of period	$	1,592		$	1,320		$	1,247		$	1,824
(Negative provision) provision charged to operating expense		(48	)		10			297			(494	)
Balance at end of period	$	1,544		$	1,330		$	1,544		$	1,330

Allowance for Loan Losses by Portfolio Segment

The following table details the information on the allowance for loan losses by portfolio segment for the three months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer			Unallocated			Total
	(In thousands)
September 30, 2014
Allowance for loan losses:
Beginning balance	$	40,303		$	9,738		$	540		$	1,305		$	51,886
Charge-offs		(884	)		(499	)		(35	)		—			(1,418	)
Recoveries on loans previously charged off		293			365			5			—			663
(Negative provision) provision		179			260			(186	)		(205	)		48
Ending balance	$	39,891		$	9,864		$	324		$	1,100		$	51,179
Ending balance: individually evaluated for impairment	$	2,027		$	3,757		$	—		$	—		$	5,784
Ending balance: collectively evaluated for impairment	$	37,864		$	6,107		$	324		$	1,100		$	45,395
Loans receivable:
Ending balance	$	2,411,154		$	235,898		$	28,907		$	—		$	2,675,959
Ending balance: individually evaluated for impairment	$	35,654		$	11,970		$	1,758		$	—		$	49,382
Ending balance: collectively evaluated for impairment	$	2,308,884		$	223,578		$	27,091		$	—		$	2,559,553
Ending balance: acquired with deteriorated credit quality	$	66,616		$	350		$	58		$	—		$	67,024

	Real Estate			Commercial and Industrial			Consumer			Unallocated		Total
	(In thousands)
September 30, 2013
Allowance for loan losses:
Beginning balance	$	46,396		$	11,118		$	1,884		$	478	$	59,876
Charge-offs		(1,017	)		(3,575	)		(18	)		—		(4,610	)
Recoveries on loans previously charged off		1,641			737			5			—		2,383
Provision (negative provision)		(1,795	)		388			(232	)		1,629		(10	)
Ending balance	$	45,225		$	8,668		$	1,639		$	2,107	$	57,639
Ending balance: individually evaluated for impairment	$	564		$	1,475		$	330		$	—	$	2,369
Ending balance: collectively evaluated for impairment	$	44,661		$	7,193		$	1,309		$	2,107	$	55,270
Loans receivable:
Ending balance	$	1,921,659		$	203,547		$	34,065		$	—	$	2,159,271
Ending balance: individually evaluated for impairment	$	29,424		$	12,468		$	1,574		$	—	$	43,466
Ending balance: collectively evaluated for impairment	$	1,892,235		$	191,079		$	32,491		$	—	$	2,115,805

The following table details the information on the allowance for loan losses by portfolio segment for the nine months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer			Unallocated			Total
	(In thousands)
September 30, 2014
Allowance for loan losses:
Beginning balance	$	43,550		$	11,287		$	1,427		$	1,291		$	57,555
Charge-offs		(2,073	)		(3,394	)		(102	)		—			(5,569	)
Recoveries on loans previously charged off		3,298			3,338			20			—			6,656
(Negative provision) provision		(4,884	)		(1,367	)		(1,021	)		(191	)		(7,463	)
Ending balance	$	39,891		$	9,864		$	324		$	1,100		$	51,179
Ending balance: individually evaluated for impairment	$	2,027		$	3,757		$	—		$	—		$	5,784
Ending balance: collectively evaluated for impairment	$	37,864		$	6,107		$	324		$	1,100		$	45,395
Loans receivable:
Ending balance	$	2,411,154		$	235,898		$	28,907		$	—		$	2,675,959
Ending balance: individually evaluated for impairment	$	35,654		$	11,970		$	1,758		$	—		$	49,382
Ending balance: collectively evaluated for impairment	$	2,308,884		$	223,578		$	27,091		$	—		$	2,559,553
Ending balance: acquired with deteriorated credit quality	$	66,616		$	350		$	58		$	—		$	67,024

	Real Estate			Commercial and Industrial			Consumer			Unallocated		Total
	(In thousands)
September 30, 2013
Allowance for loan losses:
Beginning balance	$	49,472		$	10,636		$	2,280		$	917	$	63,305
Charge-offs		(4,592	)		(6,314	)		(218	)		—		(11,124	)
Recoveries on loans previously charged off		2,923			1,981			60			—		4,964
Provision (negative provision)		(2,578	)		2,365			(483	)		1,190		494
Ending balance	$	45,225		$	8,668		$	1,639		$	2,107	$	57,639
Ending balance: individually evaluated for impairment	$	564		$	1,475		$	330		$	—	$	2,369
Ending balance: collectively evaluated for impairment	$	44,661		$	7,193		$	1,309		$	2,107	$	55,270
Loans receivable:
Ending balance	$	1,921,659		$	203,547		$	34,065		$	—	$	2,159,271
Ending balance: individually evaluated for impairment	$	29,424		$	12,468		$	1,574		$	—	$	43,466
Ending balance: collectively evaluated for impairment	$	1,892,235		$	191,079		$	32,491		$	—	$	2,115,805

Analysis of Past Due Loans, Disaggregated by Loan Class

The following is an aging analysis of past due loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:

	As of September 30, 2014
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(In thousands)
Real estate loans:
Commercial property
Retail	$	1,927	$	146	$	182	$	2,255	$	633,606	$	635,861	$	—
Hotel/Motel		52		733		1,203		1,988		450,417		452,405		—
Gas station		4,781		794		544		6,119		334,267		340,386		—
Other		1,867		67		380		2,314		803,382		805,696		15
Construction		—		—		—		—		4,146		4,146		—
Residential property		113		121		486		720		105,324		106,044		—
Commercial and industrial loans:
Commercial term		1,410		587		2,873		4,870		114,305		119,175		—
Commercial lines of credit		274		197		—		471		74,775		75,246		—
International loans		251		—		—		251		40,876		41,127		—
Consumer loans		—		—		248		248		28,601		28,849		—
Total Non-PCI loans	$	10,675	$	2,645	$	5,916	$	19,236	$	2,589,699	$	2,608,935	$	15

	As of December 31, 2013
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(In thousands)
Real estate loans:
Commercial property
Retail	$	202	$	426	$	2,196	$	2,824	$	540,794	$	543,618	$	—
Hotel/Motel		1,087		—		1,532		2,619		320,308		322,927		—
Gas station		141		410		153		704		291,853		292,557		—
Other		423		2,036		839		3,298		728,320		731,618		—
Residential property		—		122		279		401		78,677		79,078		—
Commercial and industrial loans:
Commercial term		1,443		886		3,269		5,598		118,793		124,391		—
Commercial lines of credit		—		150		250		400		70,642		71,042		—
International loans		—		—		—		—		36,353		36,353		—
Consumer loans		311		42		77		430		32,075		32,505		—
Total Non-PCI loans	$	3,607	$	4,072	$	8,595	$	16,274	$	2,217,815	$	2,234,089	$	—

Information on Impaired Loans, Disaggregated by Loan Class

The following tables provide information on impaired loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:

	Recorded Investment		Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Related Allowance
	(In thousands)
September 30, 2014
Real estate loans:
Commercial property
Retail	$	4,443	$	4,543	$	1,940	$	2,503	$	256
Hotel/Motel		4,042		4,855		4,042		—		1,261
Gas station		14,152		14,681		13,692		460		166
Other		9,856		11,266		8,518		1,338		344
Residential property		3,161		3,292		3,161		—		—
Commercial and industrial loans:
Commercial term		7,958		8,408		1,914		6,044		3,469
Commercial lines of credit		2,874		2,976		2,692		182		183
International loans		1,138		1,138		460		678		105
Consumer loans		1,758		1,910		1,758		—		—
Total Non-PCI loans	$	49,382	$	53,069	$	38,177	$	11,205	$	5,784
December 31, 2013
Real estate loans:
Commercial property
Retail	$	6,244	$	6,332	$	3,767	$	2,477	$	305
Hotel/Motel		6,200		6,940		4,668		1,532		1,183
Gas station		9,389		9,884		8,592		797		209
Other		11,451		12,882		9,555		1,896		351
Residential property		2,678		2,773		2,678		—		—
Commercial and industrial loans:
Commercial term		13,834		14,308		2,929		10,905		3,806
Commercial lines of credit		614		686		173		441		252
International loans		1,087		1,087		286		801		78
Consumer loans		1,569		1,671		644		925		284
Total Non-PCI loans	$	53,066	$	56,563	$	33,292	$	19,774	$	6,468

	Average Recorded Investment for the Three Months Ended		Interest Income Recognized for the Three Months Ended		Average Recorded Investment for the Nine Months Ended		Interest Income Recognized for the Nine Months Ended
	(In thousands)
September 30, 2014
Real estate loans:
Commercial property
Retail	$	4,456	$	36	$	5,682	$	215
Hotel/Motel		4,206		102		4,149		232
Gas station		14,181		218		12,023		587
Other		9,898		232		10,716		682
Residential property		3,173		30		2,853		87
Commercial and industrial loans:
Commercial term		8,118		126		10,007		443
Commercial lines of credit		2,884		36		1,447		61
International loans		1,146		—		1,136		—
Consumer loans		1,765		16		1,619		46
Total Non-PCI loans	$	49,827	$	796	$	49,632	$	2,353
September 30, 2013
Real estate loans:
Commercial property
Retail	$	2,723	$	27	$	3,703	$	105
Hotel/Motel		6,377		127		4,752		384
Gas station		8,777		229		8,775		569
Other		8,699		243		9,512		779
Residential property		2,992		33		3,026		92
Commercial and industrial loans:
Commercial term		10,581		191		12,751		692
Commercial lines of credit		840		23		1,137		47
International loans		1,197		—		1,342		—
Consumer loans		1,581		27		1,624		54
Total Non-PCI loans	$	43,767	$	900	$	46,622	$	2,722

Summary of Interest Foregone on Impaired Loans

The following is a summary of interest foregone on impaired loans (excluding PCI loans) for the periods indicated:

	Three Months Ended						Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
	(In thousands)
Interest income that would have been recognized had impaired loans performed in accordance with their original terms	$	1,063		$	1,058		$	3,490		$	3,183
Less: Interest income recognized on impaired loans		(796	)		(900	)		(2,353	)		(2,722	)
Interest foregone on impaired loans	$	267		$	158		$	1,137		$	461

Non-Accrual Loans, Disaggregated by Loan Class

The following table details nonaccrual loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:

	September 30, 2014		December 31, 2013
	(In thousands)
Real estate loans:
Commercial property
Retail	$	2,062	$	2,946
Hotel/Motel		3,051		5,200
Gas station		5,208		2,492
Other		3,674		4,808
Residential property		1,516		1,365
Commercial and industrial loans:
Commercial term		6,060		7,146
Commercial lines of credit		674		423
Consumer loans		1,758		1,497
Total nonaccrual Non-PCI loans	$	24,003	$	25,877

Non-Performing Assets

The following table details nonperforming assets (excluding PCI loans) as of the dates indicated:

	September 30, 2014		December 31, 2013
	(In thousands)
Nonaccrual Non-PCI loans	$	24,003	$	25,877
Loans 90 days or more past due and still accruing		15		—
Total nonperforming Non-PCI loans		24,018		25,877
Other real estate owned		24,781		756
Total nonperforming assets	$	48,799	$	26,633

Troubled Debt Restructurings, Disaggregated by Type of Concession and by Loan Type

The following table details troubled debt restructurings (excluding PCI loans), disaggregated by concession type and by loan type, as of September 30, 2014 and December 31, 2013:

	Nonaccrual TDRs										Accrual TDRs
	Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total		Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total
	(In thousands)
September 30, 2014
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	1,856	$	1,856	$	307	$	—	$	—	$	—	$	307
Hotel/Motel		1,158		727		—		—		1,885		991		—		—		—		991
Gas station		1,106		—		—		—		1,106		2,351		—		—		—		2,351
Other		—		1,532		465		59		2,056		3,310		—		792		1,378		5,480
Residential property		755		—		—		—		755		—		—		—		311		311
Commercial and industrial loans:
Commercial term		118		2		1,007		1,567		2,694		61		227		2,118		1,176		3,582
Commercial lines of credit		230		—		316		128		674		2,200		—		—		—		2,200
Consumer loans		—		—		135		—		135		—		—		—		—		—
Total Non-PCI loans	$	3,367	$	2,261	$	1,923	$	3,610	$	11,161	$	9,220	$	227	$	2,910	$	2,865	$	15,222
December 31, 2013
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	750	$	750	$	—	$	—	$	—	$	474	$	474
Hotel/Motel		1,272		758		—		—		2,030		1,000		—		—		—		1,000
Gas station		1,291		—		729		—		2,020		365		—		—		2,609		2,974
Other		403		1,279		555		—		2,237		2,956		—		1,253		2,027		6,236
Residential property		795		—		—		—		795		—		—		—		—		—
Commercial and industrial loans:
Commercial term		25		206		1,449		851		2,531		1,203		—		2,286		3,817		7,306
Commercial lines of credit		—		—		—		173		173		—		—		191		—		191
International loans		—		—		—		—		—		—		—		1,087		—		1,087
Consumer loans		—		—		—		—		—		—		—		149		—		149
Total Non-PCI loans	$	3,786	$	2,243	$	2,733	$	1,774	$	10,536	$	5,524	$	—	$	4,966	$	8,927	$	19,417

Troubled Debt Restructurings, Disaggregated by Loan Class

The following table details troubled debt restructurings (excluding PCI loans), disaggregated by loan class, for the three months ended September 30, 2014 and 2013:

	September 30, 2014						September 30, 2013
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(In thousands, except number of loans)
Real estate loans:
Commercial property
Hotel/Motel (1)		—	$	—	$	—		1	$	1,000	$	1,000
Gas station (2)		1		2,014		1,991		1		107		91
Other (3)		1		395		385		2		1,011		1,014
Commercial and industrial loans:
Commercial term (4)		—		—		—		8		1,015		1,002
Commercial lines of credit (5)		1		2,092		2,200		—		—		—
Total Non-PCI loans		3	$	4,501	$	4,576		12	$	3,133	$	3,107

⁽¹⁾  Includes a modification of $1.0 million through a payment deferral for the three months ended September 30, 2013.

⁽²⁾  Includes a modification of $2.0 million through a payment deferral for the three months ended September 30, 2014, and a modification of $91,000 through a payment deferral for the three months ended September 30, 2013.

⁽³⁾  Includes a modification of $385,000 through a payment deferral for the three months ended September 30, 2014, and modifications of $365,000 through a payment deferral and reduction of principal or accrued interest and $649,000 through an extension of maturity for the three months ended September 30, 2013.

⁽⁴⁾  Includes modifications of $381,000 through payment deferrals and $621,000 through extensions of maturity for the three months ended September 30, 2013.

⁽⁵⁾  Includes a modification of $2.2 million through a payment deferral for the three months ended September 30, 2014.

The following table details troubled debt restructurings (excluding PCI loans), disaggregated by loan class, for the nine months ended September 30, 2014 and 2013:

	September 30, 2014						September 30, 2013
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(In thousands, except number of loans)
Real estate loans:
Commercial property
Retail (1)		1	$	2,002	$	1,856		—	$	—	$	—
Hotel/Motel (2)		—		—		—		1		1,000		1,000
Gas station (3)		1		2,040		1,991		1		113		91
Other (4)		3		1,422		1,386		3		1,176		1,144
Residential property (5)		1		317		311		—		—		—
Commercial and industrial loans:
Commercial term (6)		5		327		263		15		1,787		1,625
Commercial lines of credit (7)		3		2,366		2,563		—		—		—
International loans (8)		—		—		—		2		1,584		1,180
Consumer loans (9)		—		—		—		1		149		149
Total Non-PCI loans		14	$	8,474	$	8,370		23	$	5,809	$	5,189

⁽¹⁾  Includes a modification of $1.9 million through an extension of maturity for the nine months ended September 30, 2014.

⁽²⁾  Includes a modification of $1.0 million through an extension of maturity for the nine months ended September 30, 2013.

⁽³⁾  Includes a modification of $2.0 million through a payment deferral for the nine months ended September 30, 2014, and a modification of $91,000 a payment deferral for the nine months ended September 30, 2013.

⁽⁴⁾  Includes modifications of $1.3 million through payment deferrals and $59,000 through an extension of maturity for the nine months ended September 30, 2014, and modifications of $356,000 through a payment deferral, $130,000 through a reduction of principal or accrued interests and $649,000 through an extension of maturity for the nine months ended September 30, 2013.

⁽⁵⁾  Includes a modification of $311,000 through an extension of maturity for the nine months ended September 30, 2014.

⁽⁶⁾  Includes modifications of $39,000 through a payment deferral, $51,000 through reductions of principal or accrued interest and $173,000 through an extension of maturity for the nine months ended September 30, 2014, and modifications of $388,000 through payment deferrals and $1.2 million through extensions of maturity for the nine months ended September 30, 2013.

⁽⁷⁾  Includes modifications of $2.4 million through payment deferrals and $134,000 through a reduction of principal or accrued interest for the nine months ended September 30, 2014.

⁽⁸⁾  Includes modifications of $1.2 million through reductions of principal or accrued interest for the nine months ended September 30, 2013.

⁽⁹⁾  Includes a modification of $149,000 through a reduction of principal or accrued interest for the nine months ended September 30, 2013.

Troubled Debt Restructurings that Defaulted Subsequent to Modifications Occurring Within Previous Twelve Months, Disaggregated by Loan Class

The following table details troubled debt restructurings, excluding PCI loans, that defaulted subsequent to the modifications occurring within the previous twelve months, disaggregated by loan class, for the three and nine months ended September 30, 2014 and 2013, respectively:

	Three Months Ended								Nine Months Ended
	September 30, 2014				September 30, 2013				September 30, 2014				September 30, 2013
	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
	(In thousands, except number of loans)
Real estate loans:
Commercial property
Retail		1	$	1,856		—	$	—		1	$	1,856		—	$	—
Other		—		—		1		130		—		—		1		130
Commercial and industrial loans:
Commercial term		2		47		—		—		2		47		1		29
Commercial lines of credit		2		412		—		—		3		546		—		—
Total Non-PCI loans		5	$	2,315		1	$	130		6	$	2,449		2	$	159

Schedule of Changes in Outstanding Balance and Carrying Amount of PCI Loans

                  The following table presents the outstanding balance and carrying amount of those PCI loans as of the dates indicated:

	Carrying Amount			Accretable Yield
	(In thousands)
Balance at January 1, 2014	$	—		$	—
Additions from CBI acquisition at August 31, 2014		75,878			(22,858	)
Accretion		491			491
Payment received		(5,892	)		—
Disposals/transfers to OREO		(3,453	)		212
Balance at September 30, 2014	$	67,024		$	(22,155	)

As of September 30, 2014, pass/pass-watch (grade 0-4), criticized (grade 5) and classified (grade 6-7) PCI loans, disaggregated by loan class, were as follows:

Changes in Servicing Assets

The changes in servicing assets for the nine months ended September 30, 2014 and 2013 were as follows:

	Nine Months Ended September 30,
	2014			2013
	(In thousands)
Balance at beginning of period	$	6,833		$	5,542
Additions from CBI acquisition		1,458			—
Addition related to sale of SBA loans		871			1,996
Amortization		(1,318	)		(1,152	)
Balance at end of period	$	7,844		$	6,386

Non-PCI Loans [Member]

Credit Quality of Loan Portfolio

As of September 30, 2014 and December 31, 2013, pass/pass-watch (grade 0-4), criticized (grade 5) and classified (grade 6-7) loans (excluding PCI loans), disaggregated by loan class, were as follows:

	As of September 30, 2014
	Pass/Pass-Watch (Grade 0-4)		Criticized (Grade 5)		Classified (Grade 6-7)		Total
	(In thousands)
Real estate loans:
Commercial property
Retail	$	620,511	$	12,821	$	2,529	$	635,861
Hotel/Motel		399,006		48,995		4,404		452,405
Gas station		320,501		10,054		9,831		340,386
Other		780,400		13,599		11,697		805,696
Construction		4,146		—		—		4,146
Residential property		103,812		122		2,110		106,044
Commercial and industrial loans:
Commercial term		108,908		1,315		8,952		119,175
Commercial lines of credit		74,286		—		960		75,246
International loans		38,676		—		2,451		41,127
Consumer loans		26,626		140		2,083		28,849
Total Non-PCI loans	$	2,476,872	$	87,046	$	45,017	$	2,608,935

	As of December 31, 2013
	Pass/Pass-Watch (Grade 0-4)		Criticized (Grade 5)		Classified (Grade 6-7)		Total
	(In thousands)
Real estate loans:
Commercial property
Retail	$	531,014	$	5,309	$	7,296	$	543,619
Hotel/Motel		308,483		1,796		12,648		322,927
Gas station		279,636		3,104		9,817		292,557
Other		690,481		8,524		32,612		731,617
Residential property		77,422		—		1,656		79,078
Commercial and industrial loans:
Commercial term		107,712		2,007		14,672		124,391
Commercial lines of credit		69,823		—		1,219		71,042
International loans		35,777		576		—		36,353
Consumer loans		30,044		163		2,298		32,505
Total Non-PCI loans	$	2,130,392	$	21,479	$	82,218	$	2,234,089

PCI Loans [Member]

Credit Quality of Loan Portfolio

As of September 30, 2014, pass/pass-watch (grade 0-4), criticized (grade 5) and classified (grade 6-7) PCI loans, disaggregated by loan class, were as follows:

	As of September 30, 2014
	Pass/Pass-Watch (Grade 0-4)		Criticized (Grade 5)		Classified (Grade 6-7)		Total
Real estate loans:
Commercial property
Retail	$	2,939	$	215	$	12,786	$	15,940
Hotel/Motel		248		—		13,958		14,206
Gas station		10,200		1,205		6,664		18,069
Other		2,154		—		13,561		15,715
Residential property		—		—		2,686		2,686
Commercial and industrial loans:
Commercial term		—		—		350		350
Consumer loans		—		—		58		58
Total PCI loans	$	15,541	$	1,420	$	50,063	$	67,024

XML

Fair Value Measurements - Reconciliation and Income Statement Classification of Gains and Losses for All Assets and Liabilities (Parenthetical) (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014	Jul. 27, 2010
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Exercise price of stock warrants	$ 9.60	$ 9.60
Class of warrant or rights date from which warrants or rights expiration date	Oct. 14, 2015
Municipal bonds-tax exempt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Par value of bond	$ 700,000
Amortized value	700,000
Useful remaining life intangible assets	5 years 23 days
Equity security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of equity securities	2
Purchases, Issuances and Settlement	450,000
Discount rate	10.50%
Security One [Member] | Equity security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Purchases, Issuances and Settlement	250,000
Security Two [Member] | Equity security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Purchases, Issuances and Settlement	$ 200,000

XML

Acquisition - Summarized of Consideration Paid, Assets Acquired and Liabilities Assumed (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended		0 Months Ended		0 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Aug. 31, 2014	Aug. 31, 2014 Central Bancorp, Inc [Member]	Aug. 31, 2014 Central Bancorp, Inc [Member]	Aug. 31, 2014 Central Bancorp, Inc [Member] Subordinated Debentures [Member]
Loans At Acquisition Date [Line Items]
CBI Stockholders				$ 50,000
Redemption of preferred stock and cumulative unpaid dividends				28,675
Accrued interest on subordinated debentures						1,566
Total consideration paid:				80,241
Assets acquired:
Cash and cash equivalents					197,209
Securities available for sale					663,497
Loans					294,032
Premises and equipment					17,735
Other real estate owned					28,027
Income tax assets, net					8,800
Core deposit intangible			2,213		2,213
FDIC loss sharing assets					9,692
Bank-owned life insurance					18,296
Other assets					16,428
Total assets acquired					1,255,929
Liabilities assumed:
Deposits					1,098,997
Subordinated debentures					18,473
Rescinded stock obligation					15,720
FHLB advances					10,000
Other liabilities					25,905
Total liabilities assumed					1,169,095
Total identifiable net assets					86,834
Bargain purchase gain, net of deferred taxes	$ 6,593	$ 6,593		$ 6,593

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Investment Securities - Realized Gains and Losses on Sales of Investment Securities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Amortized Cost and Fair Value Debt Securities [Abstract]
Gross realized gains on sales of investment securities	$ 67	$ 619	$ 1,853	$ 932
Gross realized losses on sales of investment securities		(8)	(1)	(9)
Net realized gains on sales of investment securities	67	611	1,852	923
Proceeds from sales of investment securities	$ 9,778	$ 26,661	$ 140,855	$ 51,425

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Loans - Changes in Servicing Assets (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Transfers and Servicing [Abstract]
Balance at beginning of period	$ 6,833	$ 5,542
Additions from CBI acquisition	1,458
Addition related to sale of SBA loans	871	1,996
Amortization	(1,318)	(1,152)
Balance at end of period	$ 7,844	$ 6,386

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents	$ 197,016	$ 179,357
Securities available for sale, at fair value (amortized cost of $1,139,173 as of September 30, 2014 and $549,113 as of December 31, 2013)	1,128,624	530,926
Loans held for sale, at the lower of cost or fair value	7,757
Loans receivable, net of allowance for loan losses of $51,179 as of September 30, 2014 and $57,555 as of December 31, 2013	2,628,091	2,177,498
Accrued interest receivable	9,880	7,055
Premises and equipment, net	31,187	14,221
Other real estate owned, net	24,781	756
Customers' liability on acceptances	2,428	2,018
Servicing assets	7,844	6,833
FDIC loss sharing asset	7,696
Other intangible assets, net	2,179	1,171
Investment in federal home loan bank stock, at cost	17,579	14,060
Investment in federal reserve bank stock, at cost	12,273	11,196
Income tax assets	72,330	63,841
Bank-owned life insurance	48,670	29,699
Prepaid expenses	2,753	1,415
Other assets	27,244	14,333
Total assets	4,228,332	3,054,379
Deposits:
Noninterest-bearing	1,029,343	819,015
Interest-bearing	2,568,811	1,693,310
Total deposits	3,598,154	2,512,325
Accrued interest payable	3,030	3,366
Bank's liability on acceptances	2,428	2,018
Federal home loan bank advances	110,000	127,546
Rescinded stock obligation	15,720
Subordinated debentures	18,509
Accrued expenses and other liabilities	45,297	9,047
Total liabilities	3,793,138	2,654,302
Stockholders' equity:
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 32,472,323 shares (31,894,429 shares outstanding) as of September 30, 2014 and 32,339,444 shares (31,761,550 shares outstanding) as of December 31, 2013	257	257
Additional paid-in capital	554,446	552,270
Accumulated other comprehensive loss, net of tax benefit of $5,469 as of September 30, 2014 and $8,791 as of December 31, 2013	(5,065)	(9,380)
Accumulated deficit	(44,586)	(73,212)
Less: treasury stock, at cost; 577,894 shares as of September 30, 2014 and December 31, 2013	(69,858)	(69,858)
Total stockholders' equity	435,194	400,077
Total liabilities and stockholders' equity	$ 4,228,332	$ 3,054,379

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Accounting for Investments in Qualified Affordable Housing Projects - Summary of Change in Accounting Principle on Statements of Income (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Interest and dividend income	$ 34,149	$ 31,627	$ 96,552	$ 91,401
Interest expense	3,475	3,153	9,929	10,169
Net interest income	30,674	28,474	86,623	81,232
Noninterest income	14,321	6,059	25,237	19,945
Noninterest expense	26,763	17,636	63,595	53,898
Income before provision for income taxes	18,232	16,897	55,431	47,279
Provision for income taxes	4,968	6,582	19,667	17,510
Income from continuing operations	13,264	10,315	35,764	29,769
Earnings per share from continuing operations
Basic	$ 0.42	$ 0.33	$ 1.13	$ 0.94
Diluted	$ 0.41	$ 0.33	$ 1.12	$ 0.94
As Previously Reported [Member]
Interest and dividend income		31,627		91,401
Interest expense		3,153		10,169
Net interest income		28,474		81,232
Noninterest income		6,059		19,945
Noninterest expense		17,811		54,451
Income before provision for income taxes		16,722		46,726
Provision for income taxes		6,542		17,008
Income from continuing operations		10,180		29,718
Earnings per share from continuing operations
Basic		$ 0.32		$ 0.94
Diluted		$ 0.32		$ 0.94
Effect of Change in Accounting Principle [Member]
Noninterest expense		(175)		(553)
Income before provision for income taxes		175		553
Provision for income taxes		40		502
Income from continuing operations		$ 135		$ 51
Earnings per share from continuing operations
Basic		$ 0.01
Diluted		$ 0.01

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Segment Reporting - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2014 Segment
Segment Reporting [Abstract]
Number of operating segment	1

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 13,264	$ 10,385	$ 35,320	$ 29,930
Unrealized gain (loss) on securities
Unrealized holding (loss) gain arising during period	(4,947)	(10,020)	9,491	(16,141)
Less: reclassification adjustment for net gain included in net income	(67)	(611)	(1,852)	(923)
Unrealized (loss) gain on interest-only strip of servicing assets	(3)		(2)	1
Income tax benefit (expense) related to items of other comprehensive income	2,102	4,528	(3,322)	7,176
Other comprehensive (loss) income	(2,915)	(6,103)	4,315	(9,887)
Comprehensive Income	$ 10,349	$ 4,282	$ 39,635	$ 20,043

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Off-Balance Sheet Commitments - Distribution of Undisbursed Loan Commitments (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Loss Contingencies [Line Items]
Total undisbursed loan commitments	$ 340,398	$ 271,489
Commitments to extend credit [Member]
Loss Contingencies [Line Items]
Total undisbursed loan commitments	327,381	246,161
Standby letters of credit [Member]
Loss Contingencies [Line Items]
Total undisbursed loan commitments	9,140	8,926
Commercial letters of credit [Member]
Loss Contingencies [Line Items]
Total undisbursed loan commitments	3,877	4,179
Unused credit card lines [Member]
Loss Contingencies [Line Items]
Total undisbursed loan commitments		$ 12,223

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Loans - Allowance for Loan Losses by Portfolio Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Allowance for loan losses:
Balance at beginning of period	$ 51,886	$ 59,876	$ 57,555	$ 63,305
Charge-offs	(1,418)	(4,610)	(5,569)	(11,124)
Recoveries on loans previously charged off	663	2,383	6,656	4,964
Provision (negative provision)	48	(10)	(7,463)	494
Balance at end of period	51,179	57,639	51,179	57,639
Loans receivable:
Balance at end of period	2,675,959	2,159,271	2,675,959	2,159,271
Allowance for Loans and Leases Receivable [Member]
Loans receivable:
Ending balance: individually evaluated for impairment	5,784	2,369	5,784	2,369
Ending balance: collectively evaluated for impairment	45,395	55,270	45,395	55,270
Loans [Member]
Loans receivable:
Ending balance: individually evaluated for impairment	49,382	43,466	49,382	43,466
Ending balance: collectively evaluated for impairment	2,559,553	2,115,805	2,559,553	2,115,805
Ending balance: acquired with deteriorated credit quality	67,024		67,024
Real estate loans [Member]
Allowance for loan losses:
Balance at beginning of period	40,303	46,396	43,550	49,472
Charge-offs	(884)	(1,017)	(2,073)	(4,592)
Recoveries on loans previously charged off	293	1,641	3,298	2,923
Provision (negative provision)	179	(1,795)	(4,884)	(2,578)
Balance at end of period	39,891	45,225	39,891	45,225
Loans receivable:
Balance at end of period	2,411,154	1,921,659	2,411,154	1,921,659
Real estate loans [Member] | Allowance for Loans and Leases Receivable [Member]
Loans receivable:
Ending balance: individually evaluated for impairment	2,027	564	2,027	564
Ending balance: collectively evaluated for impairment	37,864	44,661	37,864	44,661
Real estate loans [Member] | Loans [Member]
Loans receivable:
Ending balance: individually evaluated for impairment	35,654	29,424	35,654	29,424
Ending balance: collectively evaluated for impairment	2,308,884	1,892,235	2,308,884	1,892,235
Ending balance: acquired with deteriorated credit quality	66,616		66,616
Commercial and industrial loans [Member]
Allowance for loan losses:
Balance at beginning of period	9,738	11,118	11,287	10,636
Charge-offs	(499)	(3,575)	(3,394)	(6,314)
Recoveries on loans previously charged off	365	737	3,338	1,981
Provision (negative provision)	260	388	(1,367)	2,365
Balance at end of period	9,864	8,668	9,864	8,668
Loans receivable:
Balance at end of period	235,898	203,547	235,898	203,547
Commercial and industrial loans [Member] | Allowance for Loans and Leases Receivable [Member]
Loans receivable:
Ending balance: individually evaluated for impairment	3,757	1,475	3,757	1,475
Ending balance: collectively evaluated for impairment	6,107	7,193	6,107	7,193
Commercial and industrial loans [Member] | Loans [Member]
Loans receivable:
Ending balance: individually evaluated for impairment	11,970	12,468	11,970	12,468
Ending balance: collectively evaluated for impairment	223,578	191,079	223,578	191,079
Ending balance: acquired with deteriorated credit quality	350		350
Consumer loans [Member]
Allowance for loan losses:
Balance at beginning of period	540	1,884	1,427	2,280
Charge-offs	(35)	(18)	(102)	(218)
Recoveries on loans previously charged off	5	5	20	60
Provision (negative provision)	(186)	(232)	(1,021)	(483)
Balance at end of period	324	1,639	324	1,639
Loans receivable:
Balance at end of period	28,907	34,065	28,907	34,065
Consumer loans [Member] | Allowance for Loans and Leases Receivable [Member]
Loans receivable:
Ending balance: individually evaluated for impairment		330		330
Ending balance: collectively evaluated for impairment	324	1,309	324	1,309
Consumer loans [Member] | Loans [Member]
Loans receivable:
Ending balance: individually evaluated for impairment	1,758	1,574	1,758	1,574
Ending balance: collectively evaluated for impairment	27,091	32,491	27,091	32,491
Ending balance: acquired with deteriorated credit quality	58		58
Unallocated [Member]
Allowance for loan losses:
Balance at beginning of period	1,305	478	1,291	917
Provision (negative provision)	(205)	1,629	(191)	1,190
Balance at end of period	1,100	2,107	1,100	2,107
Unallocated [Member] | Allowance for Loans and Leases Receivable [Member]
Loans receivable:
Ending balance: collectively evaluated for impairment	$ 1,100	$ 2,107	$ 1,100	$ 2,107

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

As of September 30, 2014 and December 31, 2013, assets and liabilities measured at fair value on a recurring basis are as follows:

	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs with No Active Market with Identical Characteristics		Significant Unobservable Inputs		Balance
	(In thousands)
September 30, 2014
Assets:
Securities available for sale:
Mortgage-backed securities	$	—	$	584,157	$	—	$	584,157
Collateralized mortgage obligations		—		196,211		—		196,211
U.S. government agency securities		172,793		—		—		172,793
SBA loan pools securities		—		114,117		—		114,117
Municipal bonds-tax exempt		—		3,711		718		4,429
Municipal bonds-taxable		—		16,660		—		16,660
Corporate bonds		—		16,940		—		16,940
U.S. treasury securities		163		—		—		163
Other securities		—		22,704		—		22,704
Equity security		—		—		450		450
Total securities available for sale	$	172,956	$	954,500	$	1,168	$	1,128,624
December 31, 2013
Assets:
Securities available for sale:
Mortgage-backed securities	$	—	$	217,059	$	—	$	217,059
Collateralized mortgage obligations		—		127,693		—		127,693
U.S. government agency securities		83,536		—		—		83,536
SBA loan pools securities		—		12,629		—		12,629
Municipal bonds-tax exempt		—		13,189		748		13,937
Municipal bonds-taxable		—		32,354		—		32,354
Corporate bonds		—		20,835		—		20,835
U.S. treasury securities		19,997		—		—		19,997
Other securities		—		2,886		—		2,886
Total securities available for sale	$	103,533	$	426,645	$	748	$	530,926
Liabilities:
Stock warrants	$	—	$	—	$	2	$	2

Reconciliation and Income Statement Classification of Gains and Losses for All Assets and Liabilities

The table below presents a reconciliation and income statement classification of gains and losses for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2014:

	Beginning Balance as of January 1, 2014		Purchases, Issuances and Settlement			Realized Gains or Losses in Earnings		Unrealized Gains or Losses in Other Comprehensive Income			Ending Balance as of September 30, 2014
	(In thousands)
Assets:
Municipal bonds-tax exempt (1)	$	748	$	—		$	—	$	(30	)	$	718
Equity securities (2)	$	—	$	450		$	—	$	—		$	450
Liabilities:
Stock warrants (3)	$	2	$	(2	)	$	—	$	—		$	—

⁽¹⁾  Reflects a zero coupon tax credit municipal bond. As the Company was not able to obtain a price from independent external pricing service providers, the discounted cash flow method was used to determine its fair value. The bond carried a par value of $700,000 and an amortized value of $700,000 with a remaining life of 0.48 year at September 30, 2014.

⁽²⁾  Reflects two equity securities that are not actively traded. The fair value of one equity security with a fair value of $250,000 was computed using valuation multiples (price to book and price to earnings) derived from market transactions for comparable companies. The other equity security with a fair value of $200,000 was computed using valuation multiples (price to book and price to earnings) derived from 1) market transactions for comparable companies, and 2) publicly-traded comparable companies. In addition to these approaches, the Company considered a discounted cash flow approach, which cash flows, calculated based on a redemption or liquidation policy of the equity issuer, are discounted back to the present using a 10.5% discount rate.

⁽³⁾  Reflects warrants for our common stock issued in connection with services Cappello Capital Corp. provided to us as a placement agent in connection with our best efforts public offering and as our financial adviser in connection with our completed rights offering. The warrants were immediately exercisable when issued at an exercise price of $9.60 per share of our common stock and expire on October 14, 2015. There were no outstanding stock warrants as of September 30, 2014. See “Note 9 – Stockholders’ Equity” for more details.

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

As of September 30, 2014 and December 31, 2013, assets and liabilities measured at fair value on a non-recurring basis are as follows:

	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs With No Active Market With Identical Characteristics		Significant Unobservable Inputs		Loss During the   Nine Months Ended   September 30, 2014
	(In thousands)
September 30, 2014
Assets:
Impaired loans (excluding PCI loans) (1)	$	—	$	34,373	$	2,199	$	2,905
Other real estate owned (2)		—		24,781		—		—

	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs With No Active Market With Identical Characteristics		Significant Unobservable Inputs		Loss During the Twelve Months Ended December 31, 2013
	(In thousands)
December 31, 2013
Assets:
Impaired loans (3)	$	—	$	36,254	$	1,738	$	2,431
Other real estate owned (4)		—		756		—		10

⁽¹⁾  Include real estate loans of $33.6 million, commercial and industrial loans of $1.2 million, and consumer loans of $1.8 million.

⁽²⁾  Includes properties from the foreclosure of real estate loans of $24.8 million of which $22.3 million was acquired from CBI.

⁽³⁾  Include real estate loans of $32.2 million, commercial and industrial loans of $2.8 million, and consumer loans of $1.3 million.

⁽⁴⁾  Includes properties from the foreclosure of real estate loans of $756,000.

Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments were as follows:

	September 30, 2014
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	197,016	$	197,016	$	—	$	—
Securities available for sale		1,128,624		172,956		954,500		1,168
Loans receivable, net of allowance for loan losses		2,628,091		—		—		2,686,838
Loans held for sale		7,757		—		7,757		—
Accrued interest receivable		9,880		9,880		—		—
Servicing assets		7,844		—		—		7,844
Investment in federal home loan bank stock		17,579		17,579		—		—
Investment in federal reserve bank stock		12,273		12,273		—		—
Financial liabilities:
Noninterest-bearing deposits		1,029,343		—		1,029,343		—
Interest-bearing deposits		2,568,811		—		—		2,565,504
Borrowings		128,509		—		—		128,509
Accrued interest payable		3,030		3,030		—		—
Off-balance sheet items:
Commitments to extend credit		327,381		—		—		327,381
Standby letters of credit		9,140		—		—		9,140

	December 31, 2013
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	179,357	$	179,357	$	—	$	—
Securities available for sale		530,926		103,533		426,645		748
Loans receivable, net of allowance for loan losses		2,177,498		—		—		2,204,069
Loans held for sale		—		—		—		—
Accrued interest receivable		7,055		7,055		—		—
Servicing assets		6,833		—		—		6,833
Investment in federal home loan bank stock		14,060		14,060		—		—
Investment in federal reserve bank stock		11,196		11,196		—		—
Financial liabilities:
Noninterest-bearing deposits		819,015		—		819,015		—
Interest-bearing deposits		1,693,310		—		—		1,693,739
Borrowings		127,546		—		—		247,249
Accrued interest payable		3,366		3,366		—		—
Off-balance sheet items:
Commitments to extend credit		246,161		—		—		246,161
Standby letters of credit		8,926		—		—		8,926

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Loans - Non-Performing Assets (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Receivables [Abstract]
Non-accrual Non-PCI loans	$ 24,003	$ 25,877
Loans 90 days or more past due and still accruing	15
Total non-performing loans	24,018	25,877
Other real estate owned	24,781	756
Total non-performing assets	$ 48,799	$ 26,633

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Earnings Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Note 14 — 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 stock options or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in earnings, excluding common shares in treasury. Unvested restricted stock is excluded from the calculation of weighted-average common shares for basic EPS. For diluted EPS, weighted-average common shares include the impact of restricted stock under the treasury method.

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

	2014								2013
	(Numerator)			(Denominator)					(Numerator)		(Denominator)
	Net Income			Weighted- Average Shares		Per Share Amount			Net Income		Weighted- Average Shares		Per Share Amount
	(In thousands, except share and per share data)
Three months ended September 30:
Basic EPS
Income from continuing operations, net of taxes	$	13,264			31,708,581	$	0.42		$	10,315		31,621,049	$	0.33
Income from discontinued operations, net of taxes		—			31,708,581		—			70		31,621,049		—
Basic EPS	$	13,264			31,708,581	$	0.42		$	10,385		31,621,049	$	0.33
Effect of dilutive securities - options, warrants and unvested restricted stock		—			292,838		—			—		111,955		—
Diluted EPS
Income from continuing operations, net of taxes	$	13,264			32,001,419	$	0.41		$	10,315		31,733,004	$	0.33
Income from discontinued operations, net of taxes		—			32,001,419		—			70		31,733,004		—
Diluted EPS	$	13,264			32,001,419	$	0.41		$	10,385		31,733,004	$	0.33
Nine months ended September 30:
Basic EPS
Income from continuing operations, net of taxes	$	35,764			31,683,288	$	1.13		$	29,769		31,583,897	$	0.94
(Loss) income from discontinued operations, net of taxes		(444	)		31,683,288		(0.02	)		161		31,583,897		0.01
Basic EPS	$	35,320			31,683,288	$	1.11		$	29,930		31,583,897	$	0.95
Effect of dilutive securities - options, warrants and unvested restricted stock		—			284,588		—			—		68,898		—
Diluted EPS
Income from continuing operations, net of taxes	$	35,764			31,967,876	$	1.12		$	29,769		31,652,795	$	0.94
(Loss) income from discontinued operations, net of taxes		(444	)		31,967,876		(0.02	)		161		31,652,795		0.01
Diluted EPS	$	35,320			31,967,876	$	1.10		$	29,930		31,652,795	$	0.95

For the three months ended September 30, 2014 and 2013, stock options totaling 136,850 and 74,275, respectively, were not included in the computation of diluted EPS because their effect would be anti-dilutive. For the nine months ended September 30, 2014 and 2013, stock options totaling 86,850 and 74,275, respectively, were not included in the computation of diluted EPS because their effect would be anti-dilutive.

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Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Unrecognized Share-Based Compensation Expense

As of September 30, 2014, unrecognized share-based compensation expense was as follows:

	Unrecognized Expense		Average Expected Recognition Period
	(In thousands)
Stock option awards	$	1,490		2.2 years
Restricted stock awards		2,822		2.6 years
Total unrecognized share-based compensation expense	$	4,312		2.4 years

Summary of Stock Options Outstanding under Plans

The table below provides stock option information for the three months ended September 30, 2014:

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value of In-the- Money Options
	(In thousands, except share and per share data)
Options outstanding at beginning of period		581,913		$	24.32		8.6 years	$	2,168	(1)
Options granted		28,000		$	20.57		10.0 years
Options exercised		(687	)	$	12.54		8.2 years
Options forfeited		(1,876	)	$	12.54		8.2 years
Options expired		(2,875	)	$	109.71		3.3 years
Options outstanding at end of period		604,475		$	23.79		8.5 years	$	2,188	(2)
Options exercisable at end of period		194,757		$	37.21		7.2 years	$	871	(2)

⁽¹⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $21.08 as of June 30, 2014, over the exercise price, multiplied by the number of options.

⁽²⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $20.16 as of September 30, 2014, over the exercise price, multiplied by the number of options.

The table below provides stock option information for the nine months ended September 30, 2014:

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value of In-the- Money Options
	(In thousands, except share and per share data)
Options outstanding at beginning of period		546,595		$	28.09		8.4 years	$	3,384	(1)
Options granted		133,000		$	21.60		9.7 years
Options exercised		(34,382	)	$	12.54		7.9 years
Options forfeited		(9,751	)	$	12.54		8.2 years
Options expired		(30,987	)	$	106.26		.5 years
Options outstanding at end of period		604,475		$	23.79		8.5 years	$	2,188	(2)
Options exercisable at end of period		194,757		$	37.21		7.2 years	$	871	(2)

⁽¹⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $21.89 as of December 31, 2013, over the exercise price, multiplied by the number of options.

⁽²⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $20.16 as of September 30, 2014, over the exercise price, multiplied by the number of options.

Schedule of Restricted Stock Awards under 2013 Plan

The table below provides information for restricted stock awards for the three and nine months ended September 30, 2014:

	Three Months Ended					Nine Months Ended
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share		Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Restricted stock at beginning of period		166,332		$	18.46		116,082		$	16.43
Restricted stock granted		32,720		$	20.86		99,068		$	21.93
Restricted stock vested		(36,331	)	$	16.46		(51,429	)	$	17.53
Restricted stock forfeited		—		$	—		(1,000	)	$	22.25
Restricted stock at end of period		162,721		$	19.39		162,721		$	19.39

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Liquidity

9 Months Ended

Sep. 30, 2014

Text Block [Abstract]

Liquidity

Note 16 — Liquidity

Hanmi Financial

Management believes that Hanmi Financial, on a stand-alone basis, has adequate liquid assets to meet its operating cash needs through September 30, 2015.

Hanmi Bank

The principal objective of our liquidity management program is to maintain the Bank’s ability to meet the day-to-day cash flow requirements of our customers who either wish to withdraw funds or to draw upon credit facilities to meet their cash needs. Management believes that the Bank, on a stand-alone basis, has adequate liquid assets to meet its current obligations. The Bank’s primary funding source will continue to be deposits originating from its branch platform. The Bank’s wholesale funds historically consisted of FHLB advances and brokered deposits. As of September 30, 2014, the Bank had $99,000 brokered deposits assumed from the CBI acquisition.

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 percent of its assets. As of September 30, 2014, the total borrowing capacity available based on pledged collateral and the remaining available borrowing capacity were $669.2 million and $559.2 million, respectively, compared to $343.3 million and $215.8 million, respectively, as of December 31, 2013. The Bank’s FHLB borrowings as of September 30, 2014 and December 31, 2013 totaled $110.0 million and $127.5 million, respectively, which represented 2.60 percent and 4.17 percent of assets as of September 30, 2014 and December 31, 2013, 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 advance rates for qualifying collateral may be adjusted upwards or downwards by the FHLB 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 and investment 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 $65.1 million from the Federal Reserve Discount Window, to which the Bank pledged loans with a carrying value of $89.4 million, and had no borrowings as of September 30, 2014. In December 2012, the Bank established a line of credit with Raymond James & Associates, Inc. for repurchase agreements up to $100.0 million. The Bank established unsecured federal funds lines of credit totaling $95.0 million from three financial institutions in June 2014 primarily to support short-term liquidity.

The Bank has Contingency Funding Plans (“CFPs”) designed to ensure that liquidity sources are sufficient to meet its ongoing obligations and commitments, particularly in the event of a liquidity contraction. The CFPs are designed to examine and quantify its liquidity under various “stress” scenarios. Furthermore, the CFPs provide a framework for management and other critical personnel to follow in the event of a liquidity contraction or in anticipation of such an event. The CFPs address authority for activation and decision making, liquidity options and the responsibilities of key departments in the event of a liquidity contraction.

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Loans - Troubled Debt Restructurings, Disaggregated by Loan Class (Parenthetical) (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Real estate loans [Member] | Hotel/Motel [Member]
Financing Receivable, Modifications [Line Items]
Loan modification made through deferrals principal payment		$ 1,000,000
Amount of loan modification through extension of maturity			1,000,000
Real estate loans [Member] | Gas station [Member]
Financing Receivable, Modifications [Line Items]
Loan modification made through deferrals principal payment	2,000,000	91,000	2,000,000	91,000
Real estate loans [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Loan modification made through deferrals principal payment	385,000	365,000	1,300,000	356,000
Loan modifications made through reduction of principal or accrued interest payments		649,000		130,000
Amount of loan modification through extension of maturity			59,000	649,000
Real estate loans [Member] | Retail [Member]
Financing Receivable, Modifications [Line Items]
Amount of loan modification through extension of maturity			1,900,000
Real estate loans [Member] | Residential property [Member]
Financing Receivable, Modifications [Line Items]
Amount of loan modification through extension of maturity			311,000
Commercial and industrial loans [Member] | Commercial term [Member]
Financing Receivable, Modifications [Line Items]
Loan modification made through deferrals principal payment	381,000		39,000	388,000
Loan modifications made through reduction of principal or accrued interest payments			51,000
Amount of loan modification through extension of maturity	621,000		173,000	1,200,000
Commercial and industrial loans [Member] | Commercial lines of credit [Member]
Financing Receivable, Modifications [Line Items]
Loan modification made through deferrals principal payment	2,200,000		2,400,000
Loan modifications made through reduction of principal or accrued interest payments			134,000
Commercial and industrial loans [Member] | International loans [Member]
Financing Receivable, Modifications [Line Items]
Loan modifications made through reduction of principal or accrued interest payments				1,200,000
Commercial and industrial loans [Member] | Consumer loans [Member]
Financing Receivable, Modifications [Line Items]
Loan modifications made through reduction of principal or accrued interest payments				$ 149,000

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Consolidated Statements of Changes in Stockholders' Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock - Number of Shares, Shares Issued [Member]	Common Stock - Number of Shares, Treasury Shares [Member]	Common Stock - Number of Shares, Shares Outstanding [Member]	Stockholders' Equity Additional Paid-in Capital [Member]	Stockholders' Equity Accumulated Other Comprehensive Income (Loss) [Member]	Stockholders' Equity Accumulated Deficit [Member]
Beginning balance at Dec. 31, 2012	$ 378,364	$ 257	$ (69,858)		$ 550,066	$ 5,418	$ (107,519)
Beginning balance, shares at Dec. 31, 2012		32,074,434	(577,894)	31,496,540
Adjustment for the cumulative effect on prior years of retrospectively applying the new method of accounting	(1,112)						(1,112)
Exercises of stock options	139				139
Exercises of stock options, shares	40,678	40,678		40,678
Exercises of stock warrants	1,289				1,289
Exercises of stock warrants, shares		106,315		106,315
Restricted stock awards
Restricted stock awards, shares		110,582		110,582
Share-based compensation expense	387				387
Comprehensive income:
Net income	19,545						19,545
Change in unrealized gain (loss) on securities available for sale and interest-only strips, net of income taxes	(9,887)					(9,887)
Ending balance at Sep. 30, 2013	388,725	257	(69,858)		551,881	(4,469)	(89,086)
Ending balance, shares at Sep. 30, 2013		32,332,009	(577,894)	31,754,115
Beginning balance at Dec. 31, 2013	400,077	257	(69,858)		552,270	(9,380)	(73,212)
Beginning balance, shares at Dec. 31, 2013		32,339,444	(577,894)	31,761,550
Exercises of stock options	427				427
Exercises of stock options, shares	34,382	34,382		34,382
Exercises of stock warrants	2				2
Exercises of stock warrants, shares		429		429
Restricted stock awards
Restricted stock awards, shares		98,068		98,068
Share-based compensation expense	1,747				1,747
Cash dividends	(6,694)						(6,694)
Comprehensive income:
Net income	35,320						35,320
Change in unrealized gain (loss) on securities available for sale and interest-only strips, net of income taxes	4,315					4,315
Ending balance at Sep. 30, 2014	$ 435,194	$ 257	$ (69,858)		$ 554,446	$ (5,065)	$ (44,586)
Ending balance, shares at Sep. 30, 2014		32,472,323	(577,894)	31,894,429

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Amortized cost of securities available-for-sale	$ 1,139,173	$ 549,113
Allowance for loan losses of loans receivable	51,179	57,555
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	62,500,000	62,500,000
Common stock, shares issued	32,472,323	32,339,444
Common stock, shares outstanding	31,894,429	31,761,550
Accumulated other comprehensive loss, net of tax benefit	$ 5,469	$ 8,791
Treasury stock, shares	577,894	577,894

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Stockholders' Equity

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Stockholders' Equity

Note 9 — Stockholders’ Equity

Stock Warrants

As part of the agreement dated as of July 27, 2010 with Cappello Capital Corp., the placement agent in connection with our best efforts offering and the financial advisor in connection with our completed rights offering, we issued warrants to purchase 250,000 shares of our common stock for services performed. The warrants have an exercise price of $9.60 per share. According to the agreement, the warrants vested on October 14, 2010 and are exercisable until their expiration on October 14, 2015. The Company followed the guidance of FASB ASC Topic 815-40, Derivatives and Hedging—Contracts in Entity’s Own Stock, which establishes a framework for determining whether certain freestanding and embedded instruments are indexed to a company’s own stock for purposes of evaluation of the accounting for such instruments under existing accounting literature. Under GAAP, the issuer is required to measure the fair value of the equity instruments in the transaction as of earlier of (i) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty’s performance is complete. The fair value of the warrants at the date of issuance totaling $2.0 million was recorded as a liability and a cost of equity, which was determined by the Black-Scholes option pricing model. The expected stock volatility was based on historical volatility of our common stock over the expected term of the warrants. We used a weighted average expected stock volatility of 111.46 percent. The expected life assumption was based on the contract term of five years. The dividend yield of zero was based on the fact that we had no intention to pay cash dividends for the term at the grant date. The risk free rate of 2.07 percent used for the warrants was equal to the zero coupon rate in effect at the time of the grant. During the third quarter of 2014, the remaining stock warrants were exercised and there were no outstanding stock warrants as of September 30, 2014.

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Earnings Per Share - Additional Information (Detail) (Stock option awards [Member])	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Stock option awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	136,850	74,275	86,850	74,275

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Share-Based Compensation - Schedule of Restricted Stock Awards under 2013 Plan (Detail) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares, Restricted stock at beginning of period	166,332	116,082
Number of Shares, Restricted stock granted	32,720	99,068
Number of Shares, Restricted stock vested	(36,331)	(51,429)
Number of Shares, Restricted stock forfeited		(1,000)
Number of Shares, Restricted stock at end of period	162,721	162,721
Weighted-Average Grant Date Fair Value Per Share, Restricted stock at beginning of period	$ 18.46	$ 16.43
Weighted-Average Grant Date Fair Value Per Share, Restricted stock granted	$ 20.86	$ 21.93
Weighted-Average Grant Date Fair Value Per Share, Restricted stock vested	$ 16.46	$ 17.53
Weighted-Average Grant Date Fair Value Per Share, Restricted stock forfeited		$ 22.25
Weighted-Average Grant Date Fair Value Per Share, Restricted stock at end of period	$ 19.39	$ 19.39

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Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Trading Symbol	HAFC
Entity Registrant Name	HANMI FINANCIAL CORP
Entity Central Index Key	0001109242
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		31,904,031

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Accumulated Other Comprehensive Income

Note 10 – Accumulated Other Comprehensive Income

Activity in accumulated other comprehensive income for the three months ended September 30, 2014 and 2013 was as follows:

	Unrealized Gains and Losses on Available-for-Sale Securities			Unrealized Gains and Losses on Interest-Only Strip			Tax Benefit		Total
	(In thousands)
For the three months ended September 30 2014:
Balance at beginning of period	$	(5,534	)	$	17		$	3,367	$	(2,150	)
Other comprehensive (loss) income before reclassification		(4,947	)		(3	)		2,102		(2,848	)
Reclassification from accumulated other comprehensive income		(67	)		—			—		(67	)
Period change		(5,014	)		(3	)		2,102		(2,915	)
Balance at end of period	$	(10,548	)	$	14		$	5,469	$	(5,065	)
For the three months ended September 30, 2013:
Balance at beginning of period	$	915		$	17		$	702	$	1,634
Other comprehensive (loss) income before reclassification		(10,020	)		—			4,528		(5,492	)
Reclassification from accumulated other comprehensive income		(611	)		—			—		(611	)
Period change		(10,631	)		—			4,528		(6,103	)
Balance at end of period	$	(9,716	)	$	17		$	5,230	$	(4,469	)

For the three months ended September 30, 2014, there were a $2.8 million of net unrealized loss on available-for-sale securities and interest-only strip, and a $67,000 reclassification from accumulated other comprehensive income to gains in earnings resulting from the sale of available-for-sale securities. The $67,000 reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of investment securities under noninterest income. The securities were previously recorded as unrealized gains of $23,000 in accumulated other comprehensive income.

For the three months ended September 30, 2013, there were a $5.5 million of net unrealized loss on available-for-sale securities and interest-only strip, and a $611,000 reclassification from accumulated other comprehensive income to gains in earnings resulting from the redemption and sale of available-for-sale securities. The $611,000 reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of investment securities under noninterest income. The securities were previously recorded as unrealized gains of $899,000 in accumulated other comprehensive income.

Activity in accumulated other comprehensive income for the nine months ended September 30, 2014 and 2013 was as follows:

	Unrealized Gains and Losses  on Available-for-Sale Securities			Unrealized Gains and Losses on Interest-Only Strip			Tax Benefit (Expense)			Total
	(In thousands)
For the nine months ended September 30 2014:
Balance at beginning of period	$	(18,187	)	$	16		$	8,791		$	(9,380	)
Other comprehensive income (loss) before reclassification		9,491			(2	)		(3,322	)		6,167
Reclassification from accumulated other comprehensive income		(1,852	)		—			—			(1,852	)
Period change		7,639			(2	)		(3,322	)		4,315
Balance at end of period	$	(10,548	)	$	14		$	5,469		$	(5,065	)
For the nine months ended September 30, 2013:
Balance at beginning of period	$	7,348		$	16		$	(1,946	)	$	5,418
Other comprehensive (loss) income before reclassification		(16,141	)		1			7,176			(8,964	)
Reclassification from accumulated other comprehensive income		(923	)		—			—			(923	)
Period change		(17,064	)		1			7,176			(9,887	)
Balance at end of period	$	(9,716	)	$	17		$	5,230		$	(4,469	)

For the nine months ended September 30, 2014, there were a $6.2 million of net unrealized gain on available-for-sale securities and interest-only strip, and a $1.8 million reclassification from accumulated other comprehensive income to gains in earnings resulting from the sale of available-for-sale securities. The $1.8 million reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of investment securities under noninterest income. The securities were previously recorded as unrealized losses of $498,000 in accumulated other comprehensive income.

For the nine months ended September 30, 2013, there were a $9.0 million of net unrealized loss on available-for-sale securities and interest-only strip, and a $923,000 reclassification from accumulated other comprehensive income to gains in earnings resulting from the redemption of available-for-sale securities. The $923,000 reclassification adjustment out of accumulated other comprehensive income was included in net gain on sales of investment securities under noninterest income. The securities were previously recorded as unrealized gains of $2.4 million in accumulated other comprehensive income.

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Fair Value Measurements - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012	Sep. 30, 2014 Minimum [Member]	Sep. 30, 2014 Maximum [Member]	Sep. 30, 2014 Significant Observable Inputs with No Active Market with Identical Characteristics [Member] Non-recurring Basis [Member] Non-Performing Loans Held for Sale [Member]	Dec. 31, 2013 Significant Observable Inputs with No Active Market with Identical Characteristics [Member] Non-recurring Basis [Member] Non-Performing Loans Held for Sale [Member]	Sep. 30, 2014 Significant Observable Inputs with No Active Market with Identical Characteristics [Member] Non-recurring Basis [Member] Small Business Administration Loans Held for Sale [Member]	Dec. 31, 2013 Significant Observable Inputs with No Active Market with Identical Characteristics [Member] Non-recurring Basis [Member] Small Business Administration Loans Held for Sale [Member]	Sep. 30, 2014 Zero Coupon Municipal Bond [Member]	Dec. 31, 2013 Zero Coupon Municipal Bond [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Zero coupon tax credit municipal bond, recorded at estimated fair value													$ 718,000	$ 748,000
Tax credits to be received		5 months 23 days
Loans held for sale	7,757,000	7,757,000	3,842,000	5,228,000	2,553,000	8,306,000			0	0	7,800,000	0
Impaired loans, description		Nonaccrual Non-PCI loans with an unpaid principal balance over $100,000 and all performing restructured loans are reviewed individually for the amount of impairment, if any. Nonaccrual Non-PCI loans with an unpaid principal balance of $100,000 or less are evaluated for impairment collectively.
Unpaid principal balance of Non-accrual Non-PCI loans reviewed individually for amount of impairment							100,000
Unpaid principal balance of Non-accrual Non-PCI loans reviewed collectively for amount of impairment								100,000
Transfers of assets between Level 1 and Level 2 of fair value hierarchy	$ 0

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Share-Based Compensation - Summary of Stock Options Outstanding under Plans (Parenthetical) (Detail) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Intrinsic value represents the excess of the closing stock price related to options outstanding	$ 20.16	$ 21.08	$ 21.89

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Consolidated Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Interest and Dividend Income:
Interest and fees on loans	$ 30,499	$ 29,098	$ 87,044	$ 83,736
Taxable interest on investment securities	3,138	2,040	8,050	6,256
Tax-exempt interest on investment securities	20	69	116	237
Interest on federal funds sold				6
Interest on interest-bearing deposits in other banks	29	28	67	140
Dividends on federal reserve bank stock	173	198	513	577
Dividends on federal home loan bank stock	290	194	762	449
Total interest and dividend income	34,149	31,627	96,552	91,401
Interest Expense:
Interest on deposits	3,278	3,117	9,653	9,376
Interest on federal home loan bank advances	37	36	116	115
Interest on subordinated debentures	73		73	678
Interest on rescinded stock obligation	87		87
Total interest expense	3,475	3,153	9,929	10,169
Net interest income before provision for credit losses	30,674	28,474	86,623	81,232
Negative provision for credit losses			(7,166)
Net interest income after provision for credit losses	30,674	28,474	93,789	81,232
Noninterest Income:
Bargain purchase gain, net of deferred taxes	6,593		6,593
Service charges on deposit accounts	2,883	2,730	7,924	8,662
Remittance fees	459	481	1,388	1,519
Trade finance fees	314	248	873	801
Other service charges and fees	380	349	1,080	1,082
Bank-owned life insurance income	225	230	672	693
Gain on sales of SBA loans guaranteed portion	1,221	994	2,267	6,064
Net loss on sales of other loans				(557)
Net gain on sales of investment securities	67	611	1,852	923
Other operating income	2,179	416	2,588	758
Total noninterest income	14,321	6,059	25,237	19,945
Noninterest Expense:
Salaries and employee benefits	12,847	9,101	33,386	26,126
Occupancy and equipment	3,098	2,561	7,964	7,532
Merger and integration costs	3,415		3,572
Unconsummated acquisition costs		307		1,331
Deposit insurance premiums and regulatory assessments	513	308	1,349	1,059
Data processing	1,476	1,146	3,746	3,436
Other real estate owned expense	78	(59)	84	(47)
Professional fees	1,386	599	2,786	4,095
Directors and officers liability insurance	191	219	574	657
Supplies and communications	628	533	1,725	1,593
Advertising and promotion	809	1,039	2,142	2,419
Loan-related expense	58	91	203	328
Amortization of other intangible assets	33		33	123
Other operating expenses	2,231	1,791	6,031	5,369
Total noninterest expense	26,763	17,636	63,595	53,898
Income before provision for income taxes	18,232	16,897	55,431	47,279
Provision for income taxes	4,968	6,582	19,667	17,510
Income from continuting operations, net of taxes	13,264	10,315	35,764	29,769
Discontinued operations
Income from operations of discontinued subsidiaries (including gain on disposal of $51 in the second quarter of 2014)		112	37	242
Income tax expense		42	481	81
Income (loss) from discontinued operations		70	(444)	161
Net income	$ 13,264	$ 10,385	$ 35,320	$ 29,930
Basic earnings per share:
Income from continuing operations, net of taxes	$ 0.42	$ 0.33	$ 1.13	$ 0.94
Income from discontinued operations, net of taxes			$ (0.02)	$ 0.01
Basic earnings per share	$ 0.42	$ 0.33	$ 1.11	$ 0.95
Diluted earnings per share:
Income from continuing operations, net of taxes	$ 0.41	$ 0.33	$ 1.12	$ 0.94
Income from discontinued operations, net of taxes			$ (0.01)	$ 0.01
Diluted earnings per share	$ 0.41	$ 0.33	$ 1.10	$ 0.95
Weighted-average shares outstanding:
Basic	31,708,581	31,621,049	31,683,288	31,583,897
Diluted	32,001,419	31,733,004	31,967,876	31,652,795

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Sale of Insurance Subsidiaries and Discontinued Operations

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Sale of Insurance Subsidiaries and Discontinued Operations

Note 4 — Sale of Insurance Subsidiaries and Discontinued Operations

In June 2014, Hanmi Financial sold its insurance subsidiaries, Chun-Ha and All World, and entered into a stock purchase agreement for their sale. The subsidiaries were classified as held for sale in April 2014 and accounted for as discontinued operations. The operations and cash flows of the businesses have been eliminated and in accordance with the provisions of ASC 205, Presentation of Financial Statements, the results are reported as discontinued operations for all periods presented.

Hanmi Financial completed the sale of its two insurance subsidiaries to Chunha Holding Corporation on June 30, 2014. The total sales price was $3.5 million, of which $2.0 million was paid upon signing. The $2.0 million was reduced by $1.6 million cash and cash equivalents included in net assets of Chun-Ha and All World, resulting in $398,000 net cash proceeds. The remaining $1.5 million will be payable in three equal installments on each anniversary of the closing date through June 30, 2017.

The sale resulted in a $51,000 gain and a $4,000 income tax benefit from operating loss, offset by a $470,000 capital gain tax and a $52,000 operating loss. Consequently, net loss from discontinued operations in the second quarter of 2014 was $467,000, or $0.01 per diluted share. The discontinued operations generated noninterest income, primarily in the line item for insurance commissions, of $2.7 million in the first six months of 2014 and $1.3 million in the first quarter of 2014. They also incurred noninterest expense of $2.7 million in various line items in the first six months of 2014 and $1.4 million in the first quarter of 2014.

Summarized financial information for our discontinued operations related to Chun-Ha and All World are as follows:

	June 30, 2014		December 31, 2013
	(In thousands)
Cash and cash equivalents	$	1,602	$	1,396
Premises and equipment, net		90		79
Other intangible assets, net		1,089		1,171
Other assets		2,855		3,298
Total assets	$	5,636	$	5,944
Income tax payable	$	415	$	1,304
Accrued expenses and other liabilities		1,878		2,171
Total liabilities	$	2,293	$	3,475
Net assets of discontinued operations	$	3,343	$	2,469

	Three Months Ended September 30,		Nine Months Ended September 30,
	2013		2014			2013
			(In thousands)
Noninterest income (loss)	$	112	$	(14	)	$	242
Gain on disposal		—		51			—
Income before taxes	$	112	$	37		$	242
Provision for income taxes		42		481			81
Net income (loss) from discontinued operations	$	70	$	(444	)	$	161

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Accounting for Investments in Qualified Affordable Housing Projects

9 Months Ended

Sep. 30, 2014

Accounting Changes and Error Corrections [Abstract]

Accounting for Investments in Qualified Affordable Housing Projects

Note 3 — Accounting for Investments in Qualified Affordable Housing Projects

The Bank invests in qualified affordable housing projects (low income housing) and previously accounted for them under the equity method of accounting. The Bank recognized its share of partnership losses in other operating expenses with the tax benefits recognized in the income tax provision. In January 2014, the FASB issued ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, which amends ASC 323 to provide the ability to elect the proportional amortization method with the amortization expense and tax benefits recognized through the income tax provision. This ASU is effective for the annual period beginning after December 15, 2014, with early adoption being permitted. The Bank elected to early adopt the provisions of the ASU in the second quarter of 2014 and elected the proportional amortization method as retrospective transition. This accounting change in the amortization methodology resulted in changes to account for amortization recognized in prior periods, which impacted the balance of tax credit investments and related tax accounts. The investment amortization expense is presented as a component of the income tax provision.

The cumulative effect of the retrospective application of this accounting principle as of January 1, 2012 was a negative $1.1 million. Net income in the three and nine months ended September 30, 2013 increased by $135,000 and $51,000, respectively, due to the change in accounting principle.

The following tables present the effect of the retrospective application of this change in accounting principle on the Company’s Consolidated Balance Sheets, Statements of Income and Statement of Cash Flows for the respective periods:

Hanmi Financial Corporations and Subsidiaries

Consolidated Balance Sheet (Unaudited)

	As of December 31, 2013
	As Previously Reported		Effect of Change in Accounting Principle			As Adjusted
	(In thousands)
Assets
Cash and cash equivalents	$	179,357	$	—		$	179,357
Securities available for sale		530,926		—			530,926
Loans receivable		2,177,498		—			2,177,498
Income tax assets		63,536		305			63,841
Other assets		104,222		(1,465	)		102,757
Total assets	$	3,055,539	$	(1,160	)	$	3,054,379
Liabilities and stockholders’ equity
Liabilities	$	2,654,302	$	—		$	2,654,302
Stockholders’ equity		401,237		(1,160	)		400,077
Total liabilities and stockholders’ equity	$	3,055,539	$	(1,160	)	$	3,054,379

Hanmi Financial Corporations and Subsidiaries

Consolidated Statements of Income (Unaudited)

	For the Three Months Ended September 30, 2013
	As Previously Reported		Effect of Change in Accounting Principle			As Adjusted
	(In thousands, except per share data)
Interest and dividend income	$	31,627	$	—		$	31,627
Interest expense		3,153		—			3,153
Net interest income	$	28,474	$	—		$	28,474
Noninterest income		6,059		—			6,059
Noninterest expense		17,811		(175	)		17,636
Income before provision for income taxes	$	16,722	$	175		$	16,897
Provision for income taxes		6,542		40			6,582
Income from continuing operations	$	10,180	$	135		$	10,315
Earnings per share from continuing operations
Basic	$	0.32	$	0.01		$	0.33
Diluted	$	0.32	$	0.01		$	0.33

	For the Nine Months Ended September 30, 2013
	As Previously Reported		Effect of Change in Accounting Principle			As Adjusted
	(In thousands, except per share data)
Interest and dividend income	$	91,401	$	—		$	91,401
Interest expense		10,169		—			10,169
Net interest income	$	81,232	$	—		$	81,232
Noninterest income		19,945		—			19,945
Noninterest expense		54,451		(553	)		53,898
Income before provision for income taxes	$	46,726	$	553		$	47,279
Provision for income taxes		17,008		502			17,510
Income from continuing operations	$	29,718	$	51		$	29,769
Earnings per share from continuing operations
Basic	$	0.94	$	—		$	0.94
Diluted	$	0.94	$	—		$	0.94

Hanmi Financial Corporations and Subsidiaries

Consolidated Statement of Cash Flows (Unaudited)

	For the Nine Months Ended September 30, 2013
	As Previously Reported			Effect of Change in Accounting Principle			As Adjusted
	(In thousands)
Cash flows from operating activities:
Net income	$	29,879		$	51		$	29,930
Total adjustment in net income		18,098			(51	)		18,047
Net cash provided by operating activities	$	47,977		$	—		$	47,977
Cash flows from investing activities:
Net cash used in investing activities		(71,768	)		—			(71,768	)
Cash flows from financing activities:
Net cash used in financing activities		(50,402	)		—			(50,402	)
Net decrease in cash and cash equivalents	$	(74,193	)	$	—		$	(74,193	)
Cash and cash equivalents at beginning of period		268,047			—			268,047
Cash and cash equivalents at end of period	$	193,854		$	—		$	193,854

The Bank determined that there were no events or changes in circumstances indicating that it is more likely than not that the carrying amount of the investment will not be realized. Therefore, no impairment was recognized as of September 30, 2014 or December 31, 2013. The investment in low income housing was $21.8 million and $3.0 million as of September 30, 2014 and December 31, 2013, respectively. The Bank’s unfunded commitments related to low income housing investments was $12.6 million as of September 30, 2014 and there were none as of December 31, 2013. The Bank recognized $592,000 and $1.0 million as a component of income tax expense during the three and nine months ended September 30, 2014, respectively, and tax credits and other benefits received from the tax expenses were $821,000 and $1.4 million during the three and nine months ended September 30, 2014, respectively.

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Off-Balance Sheet Commitments

9 Months Ended

Sep. 30, 2014

Risks and Uncertainties [Abstract]

Off-Balance Sheet Commitments

Note 15 — Off-Balance Sheet Commitments

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

The Bank’s exposure to credit losses in the event of non-performance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for extending loan facilities to customers. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, was based on management’s credit evaluation of the counterparty.

Collateral held varies but may include accounts receivable, inventory, premises and equipment, and income-producing or borrower-occupied properties. The following table shows the distribution of undisbursed loan commitments as of the dates indicated:

	September 30, 2014		December 31, 2013
	(In thousands)
Commitments to extend credit	$	327,381	$	246,161
Standby letters of credit		9,140		8,926
Commercial letters of credit		3,877		4,179
Unused credit card lines		—		12,223
Total undisbursed loan commitments	$	340,398	$	271,489

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Regulatory Matters

9 Months Ended

Sep. 30, 2014

Banking and Thrift [Abstract]

Regulatory Matters

Note 11 — Regulatory Matters

Risk-Based Capital

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

In order for banks to be considered “well capitalized,” the agencies require them to maintain a minimum ratio of qualifying total capital to risk-weighted assets of 10.0 percent and a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0 percent. In addition to the risk-based guidelines, the agencies require depository institutions to maintain a minimum ratio of Tier 1 capital to average assets, referred to as the leverage ratio, of 5.0 percent.

The capital ratios of Hanmi Financial and the Bank as of September 30, 2014 and December 31, 2013 were as follows:

	Actual					Minimum Regulatory Requirement					Minimum to Be Categorized as “Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(In thousands)
September 30, 2014
Total capital (to risk-weighted assets):
Hanmi Financial	$	482,481		16.33	%	$	236,338		8.00	%		N/A		N/A
Hanmi Bank	$	482,802		16.28	%	$	237,193		8.00	%	$	296,492		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	445,357		15.08	%	$	118,169		4.00	%		N/A		N/A
Hanmi Bank	$	444,771		15.00	%	$	118,597		4.00	%	$	177,895		6.00	%
Tier 1 capital (to average assets):
Hanmi Financial	$	445,357		12.80	%	$	139,169		4.00	%		N/A		N/A
Hanmi Bank	$	444,771		12.81	%	$	138,926		4.00	%	$	173,658		5.00	%
December 31, 2013
Total capital (to risk-weighted assets):
Hanmi Financial	$	426,614		17.48	%	$	195,210		8.00	%		N/A		N/A
Hanmi Bank	$	409,095		16.79	%	$	194,880		8.00	%	$	243,600		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	395,763		16.26	%	$	97,605		4.00	%		N/A		N/A
Hanmi Bank	$	378,295		15.53	%	$	97,440		4.00	%	$	146,160		6.00	%
Tier 1 capital (to average assets):
Hanmi Financial	$	395,763		13.62	%	$	116,249		4.00	%		N/A		N/A
Hanmi Bank	$	378,295		13.05	%	$	115,984		4.00	%	$	144,980		5.00	%

Regulatory Capital Rule Adjustments

In July 2013, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation approved the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revise minimum capital requirements and adjust prompt corrective action thresholds. The rules also revise the regulatory capital elements, add a new common equity Tier I capital ratio, and increase the minimum Tier I capital ratio requirement. The revisions permit banking organizations to retain, through a one-time election, the existing treatment for accumulated other comprehensive income. Additionally, the rules implement a new capital conservation buffer. Under the final rules, an institution is subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the capital conservation buffer amount. The rules will become effective January 1, 2015 for smaller, non-complex banking organizations with full implementation of the capital conservation buffer and certain deductions and adjustments to regulatory capital through January 1, 2019. The Company will continue to evaluate the new changes, and expects that the Company and the Bank will meet the capital requirements.

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) (Non-recurring Basis [Member], USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized losses impaired loans	$ 2,905	$ 2,431
Unrealized losses other real estate owned		10
Significant Observable Inputs with No Active Market with Identical Characteristics [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	34,373	36,254
Other real estate owned	24,781	756
Significant Unobservable Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 2,199	$ 1,738

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Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Note 7 — Income Taxes

The Company’s income tax expenses for the continuing operations were $5.0 million for the three months ended September 30, 2014, compared to $6.6 million for the same period in 2013. The effective income tax rate was 27.25 percent for the three months ended September 30, 2014, compared to 38.95 percent for the same period in 2013. For the nine months ended September 30, 2014, income tax expense for the continuing operations were $19.7 million, compared to $17.5 million for the same period in 2013. The effective income tax rate was 35.48 percent, compared to 41.42 percent for the same period in 2013. The decrease in the effective tax rate for the three months ended September 30, 2014 was due mainly to tax rate reduction to the adjustment for the nontaxable bargain purchase gain, which is excluded from taxable income. The decrease in the effective tax rate for the nine months ended September 30, 2014, as compared to the same period in 2013, was due mainly to tax rate reduction to the adjustment for the bargain purchase gain, a $400,000 deferred tax benefit generated from the sale of the insurance businesses and tax benefits to be realized from investments in low income tax credit funds, offset by the expiration of the California EZ net interest deduction and EZ hiring credits. Management concluded that no valuation allowance is required for the deferred tax assets except for the portion related to certain state net operating losses as of September 30, 2014.

As of September 30, 2014, the Company was subject to examinations by various federal and state tax authorities for the tax years ended December 31, 2004 through 2013. As of September 30, 2014, the Company was subjected to audits or examinations by the Internal Revenue Service for the 2009 tax year and the California Franchise Tax Board for the 2008 and 2009 tax years. Management does not anticipate any material changes in our financial statements due to the results of the audits.

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Loans - Credit Quality of Loan Portfolio (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 Real estate loans [Member]	Sep. 30, 2013 Real estate loans [Member]	Sep. 30, 2014 Real estate loans [Member] Retail [Member]	Sep. 30, 2014 Real estate loans [Member] Hotel/Motel [Member]	Sep. 30, 2014 Real estate loans [Member] Gas station [Member]	Sep. 30, 2014 Real estate loans [Member] Other [Member]	Sep. 30, 2014 Real estate loans [Member] Construction [Member]	Sep. 30, 2014 Real estate loans [Member] Residential property [Member]	Sep. 30, 2014 Commercial and industrial loans [Member]	Sep. 30, 2013 Commercial and industrial loans [Member]	Sep. 30, 2014 Commercial and industrial loans [Member] Commercial term [Member]	Sep. 30, 2014 Commercial and industrial loans [Member] Commercial lines of credit [Member]	Sep. 30, 2014 Commercial and industrial loans [Member] International loans [Member]	Sep. 30, 2014 Consumer loans [Member]	Sep. 30, 2013 Consumer loans [Member]	Sep. 30, 2014 Non-PCI Loans [Member]	Dec. 31, 2013 Non-PCI Loans [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Pass/Pass-Watch (Grade 0-4) [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Pass/Pass-Watch (Grade 0-4) [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Criticized (Grade 5) [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Criticized (Grade 5) [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Classified (Grade 6-7) [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Classified (Grade 6-7) [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Retail [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Retail [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Hotel/Motel [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Hotel/Motel [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Gas station [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Gas station [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Other [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Other [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Construction [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Residential property [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Residential property [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Retail [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Retail [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Hotel/Motel [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Hotel/Motel [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Gas station [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Gas station [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Other [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Other [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Construction [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Residential property [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Residential property [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Criticized (Grade 5) [Member] Retail [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Criticized (Grade 5) [Member] Retail [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Criticized (Grade 5) [Member] Hotel/Motel [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Criticized (Grade 5) [Member] Hotel/Motel [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Criticized (Grade 5) [Member] Gas station [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Criticized (Grade 5) [Member] Gas station [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Criticized (Grade 5) [Member] Other [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Criticized (Grade 5) [Member] Other [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Criticized (Grade 5) [Member] Residential property [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Classified (Grade 6-7) [Member] Retail [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Classified (Grade 6-7) [Member] Retail [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Classified (Grade 6-7) [Member] Hotel/Motel [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Classified (Grade 6-7) [Member] Hotel/Motel [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Classified (Grade 6-7) [Member] Gas station [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Classified (Grade 6-7) [Member] Gas station [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Classified (Grade 6-7) [Member] Other [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Classified (Grade 6-7) [Member] Other [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Real estate loans [Member] Classified (Grade 6-7) [Member] Residential property [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Real estate loans [Member] Classified (Grade 6-7) [Member] Residential property [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Commercial and industrial loans [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Commercial and industrial loans [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Commercial and industrial loans [Member] Commercial term [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Commercial and industrial loans [Member] Commercial term [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Commercial and industrial loans [Member] Commercial lines of credit [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Commercial and industrial loans [Member] Commercial lines of credit [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Commercial and industrial loans [Member] International loans [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Commercial and industrial loans [Member] International loans [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Commercial and industrial loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Commercial term [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Commercial and industrial loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Commercial term [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Commercial and industrial loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Commercial lines of credit [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Commercial and industrial loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] Commercial lines of credit [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Commercial and industrial loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] International loans [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Commercial and industrial loans [Member] Pass/Pass-Watch (Grade 0-4) [Member] International loans [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Commercial and industrial loans [Member] Criticized (Grade 5) [Member] Commercial term [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Commercial and industrial loans [Member] Criticized (Grade 5) [Member] Commercial term [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Commercial and industrial loans [Member] Criticized (Grade 5) [Member] International loans [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Commercial and industrial loans [Member] Classified (Grade 6-7) [Member] Commercial term [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Commercial and industrial loans [Member] Classified (Grade 6-7) [Member] Commercial term [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Commercial and industrial loans [Member] Classified (Grade 6-7) [Member] Commercial lines of credit [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Commercial and industrial loans [Member] Classified (Grade 6-7) [Member] Commercial lines of credit [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Commercial and industrial loans [Member] Classified (Grade 6-7) [Member] International loans [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Consumer loans [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Consumer loans [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Consumer loans [Member] Pass/Pass-Watch (Grade 0-4) [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Consumer loans [Member] Pass/Pass-Watch (Grade 0-4) [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Consumer loans [Member] Criticized (Grade 5) [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Consumer loans [Member] Criticized (Grade 5) [Member]	Sep. 30, 2014 Non-PCI Loans [Member] Consumer loans [Member] Classified (Grade 6-7) [Member]	Dec. 31, 2013 Non-PCI Loans [Member] Consumer loans [Member] Classified (Grade 6-7) [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Non-PCI loans	$ 2,675,959	$ 2,159,271	$ 2,411,154	$ 1,921,659	$ 651,801	$ 466,611	$ 358,455	$ 821,411	$ 4,146	$ 108,730	$ 235,898	$ 203,547	$ 119,525	$ 75,246	$ 41,127	$ 28,907	$ 34,065	$ 2,608,935	$ 2,234,089	$ 2,476,872	$ 2,130,392	$ 87,046	$ 21,479	$ 45,017	$ 82,218	$ 2,344,538	$ 1,969,798	$ 635,861	$ 543,619	$ 452,405	$ 322,927	$ 340,386	$ 292,557	$ 805,696	$ 731,617	$ 4,146	$ 106,044	$ 79,078	$ 620,511	$ 531,014	$ 399,006	$ 308,483	$ 320,501	$ 279,636	$ 780,400	$ 690,481	$ 4,146	$ 103,812	$ 77,422	$ 12,821	$ 5,309	$ 48,995	$ 1,796	$ 10,054	$ 3,104	$ 13,599	$ 8,524	$ 122	$ 2,529	$ 7,296	$ 4,404	$ 12,648	$ 9,831	$ 9,817	$ 11,697	$ 32,612	$ 2,110	$ 1,656	$ 235,548	$ 231,786	$ 119,175	$ 124,391	$ 75,246	$ 71,042	$ 41,127	$ 36,353	$ 108,908	$ 107,712	$ 74,286	$ 69,823	$ 38,676	$ 35,777	$ 1,315	$ 2,007	$ 576	$ 8,952	$ 14,672	$ 960	$ 1,219	$ 2,451	$ 28,849	$ 32,505	$ 26,626	$ 30,044	$ 140	$ 163	$ 2,083	$ 2,298

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Investment Securities

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 5 — Investment Securities

The following is a summary of investment securities available for sale as of September 30, 2014 and December 31, 2013:

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value
	(In thousands)
September 30, 2014
Mortgage-backed securities (1) (2)	$	588,638	$	230	$	4,711	$	584,157
Collateralized mortgage obligations (1)		197,784		146		1,719		196,211
U.S. government agency securities		176,449		—		3,656		172,793
SBA loan pool securities		114,753		64		700		114,117
Municipal bonds-tax exempt		4,335		94		—		4,429
Municipal bonds-taxable		16,666		141		147		16,660
Corporate bonds		17,018		11		89		16,940
U.S. treasury securities		164		—		1		163
Other securities		22,916		—		212		22,704
Equity security		450		—		—		450
Total securities available for sale	$	1,139,173	$	686	$	11,235	$	1,128,624
December 31, 2013
Mortgage-backed securities (1)	$	222,768	$	317	$	6,026	$	217,059
Collateralized mortgage obligations (1)		130,636		274		3,217		127,693
U.S. government agency securities		90,852		—		7,316		83,536
Municipal bonds-tax exempt		13,857		110		30		13,937
Municipal bonds-taxable		33,361		73		1,080		32,354
Corporate bonds		21,013		8		186		20,835
U.S. treasury securities		19,998		—		1		19,997
SBA loan pool securities		13,598		—		969		12,629
Other securities		3,030		—		144		2,886
Total securities available for sale	$	549,113	$	782	$	18,969	$	530,926

⁽¹⁾  Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities

⁽²⁾  A portion of the mortgage-backed securities is comprised of home mortgage-backed securities backed by home equity conversion mortgages

The amortized cost and estimated fair value of investment securities as of September 30, 2014, by contractual maturity, are shown below. Although mortgage-backed securities and collateralized mortgage obligations have contractual maturities through 2064, expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available for Sale
	Amortized Cost		Estimated Fair Value
	(In thousands)
Within one year	$	15,702	$	15,721
Over one year through five years		73,633		73,247
Over five years through ten years		139,745		136,900
Over ten years		100,305		99,234
Mortgage-backed securities		588,638		584,157
Collateralized mortgage obligations		197,784		196,211
Other securities		22,916		22,704
Equity security		450		450
Total	$	1,139,173	$	1,128,624

FASB ASC 320, Investments – Debt and Equity Securities, requires us to periodically evaluate our investments for other-than-temporary impairment (“OTTI”). There was no OTTI charge during the nine months ended September 30, 2014.

Gross unrealized losses on investment securities available for sale, the estimated fair value of the related securities and the number of securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows as of September 30, 2014 and December 31, 2013:

	Holding Period
	Less Than 12 Months						12 Months or More						Total
	Gross Unrealized Loss		Estimated Fair Value		Number of Securities		Gross Unrealized Loss		Estimated Fair Value		Number of Securities		Gross Unrealized Loss		Estimated Fair Value		Number of Securities
	(In thousands, except number of securities)
September 30, 2014
Mortgage-backed securities	$	2,947	$	422,318		73	$	1,764	$	60,057		22	$	4,711	$	482,375		95
Collateralized mortgage obligations		914		145,816		30		805		21,188		9		1,719		167,004		39
U.S. government agency securities		537		85,948		22		3,119		71,843		26		3,656		157,791		48
SBA loan pool securities		27		87,088		15		673		12,037		4		700		99,125		19
Municipal bonds-taxable		9		2,238		2		138		5,511		5		147		7,749		7
Corporate bonds		—		—		—		89		7,902		2		89		7,902		2
U.S. treasury securities		1		163		1		—		—		—		1		163		1
Other securities		111		19,775		1		101		2,924		5		212		22,699		6
Total	$	4,546	$	763,346		144	$	6,689	$	181,462		73	$	11,235	$	944,808		217
December 31, 2013
Mortgage-backed securities	$	3,437	$	170,324		51	$	2,589	$	30,947		12	$	6,026	$	201,271		63
Collateralized mortgage obligations		2,353		87,026		27		864		14,657		7		3,217		101,683		34
U.S. government agency securities		3,942		50,932		19		3,374		32,606		12		7,316		83,538		31
Municipal bonds-tax exempt		30		8,562		5		—		—		—		30		8,562		5
Municipal bonds-taxable		787		22,817		16		293		3,813		4		1,080		26,630		20
Corporate bonds		9		5,024		1		177		11,803		3		186		16,827		4
U.S. treasury bills		1		19,996		2		—		—		—		1		19,996		2
SBA loan pool securities		—		—		—		969		12,629		4		969		12,629		4
Other securities		48		1,957		3		96		929		3		144		2,886		6
Total	$	10,607	$	366,638		124	$	8,362	$	107,384		45	$	18,969	$	474,022		169

All individual securities that have been in a continuous unrealized loss position for 12 months or longer as of September 30, 2014 and December 31, 2013 had investment grade ratings upon purchase. The issuers of these securities have not established any cause for default on these securities and the various rating agencies have reaffirmed these securities’ long-term investment grade status as of September 30, 2014 and December 31, 2013. These securities have fluctuated in value since their purchase dates as market interest rates have fluctuated.

FASB ASC 320 requires other-than-temporarily impaired investment securities to be written down when fair value is below amortized cost in circumstances where: (1) an entity has the intent to sell a security; (2) it is more likely than not that an entity will be required to sell the security before recovery of its amortized cost basis; or (3) an entity does not expect to recover the entire amortized cost basis of the security. If an entity intends to sell a security or if it is more likely than not the entity will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If an entity does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in other comprehensive income.

The Company does not intend to sell these securities and it is more likely than not that we will not be required to sell the investments before the recovery of its amortized cost basis. In addition, the unrealized losses on municipal and corporate bonds are not considered other-than-temporarily impaired, as the bonds are rated investment grade and there are no credit quality concerns with the issuers. Interest payments have been made as scheduled, and management believes this will continue in the future and that the bonds will be repaid in full as scheduled. Therefore, in management’s opinion, all securities that have been in a continuous unrealized loss position for the past 12 months or longer as of September 30, 2014 and December 31, 2013 were not other-than-temporarily impaired, and therefore, no impairment charges as of September 30, 2014 and December 31, 2013 were warranted.

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

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014			2013
	(In thousands)
Gross realized gains on sales of investment securities	$	67	$	619		$	1,853		$	932
Gross realized losses on sales of investment securities		—		(8	)		(1	)		(9	)
Net realized gains on sales of investment securities	$	67	$	611		$	1,852		$	923
Proceeds from sales of investment securities	$	9,778	$	26,661		$	140,855		$	51,425

For the three months ended September 30, 2014, there was a $67,000 gain in earnings resulting from the sale of investment securities that had previously been recorded as net unrealized gains of $23,000 in comprehensive income. For the three months ended September 30, 2013, there was a $611,000 net gain in earnings resulting from the sale of investment securities that had previously been recorded as net unrealized gains of $899,000 in comprehensive income.

For the nine months ended September 30, 2014, there was a $1.9 million net gain in earnings resulting from the redemption and sale of investment securities that had previously been recorded as net unrealized losses of $498,000 in comprehensive income. For the nine months ended September 30, 2013, there was a $923,000 net gain in earnings resulting from the redemption and sale of investment securities that had previously been recorded as net unrealized gains of $2.4 million in comprehensive income.

Investment securities available for sale with par values of $79.9 million and $47.6 million as of September 30, 2014 and December 31, 2013, respectively, were pledged to secure Federal Home Loan Bank (“FHLB”) advances, public deposits and for other purposes as required or permitted by law.

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Loans

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Loans

Note 6 — Loans

The loan portfolio includes originated and purchased loans. Originated loans and purchased loans for which there was no evidence of credit deterioration at their acquisition date and it was probable that we would be able to collect all contractually required payments, are referred to collectively as non-purchased credit impaired loans, or “Non-PCI loans.” Purchased loans for which there was, at the acquisition date, evidence of credit deterioration since their origination and it was probable that we would be unable to collect all contractually required payments are referred to as purchased credit impaired loans, or “PCI loans”.

Non-PCI loans are carried at the principal amount outstanding, net of deferred fees and costs, and in the case of acquired loans, net of purchase discounts and premiums. Deferred fees and costs and purchase discounts and premiums on acquired non-impaired loans are recognized as an adjustment to interest income over the contractual life of the loans using the effective interest method or taken into income when the related loans are paid off or sold.

PCI loans are accounted for in accordance with ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.” For PCI loans, at the time of acquisition, we (i) calculate the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (ii) estimate the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The difference between the undiscounted cash flows expected to be collected and the estimated fair value of the acquired loans is the accretable yield. The accretable yield is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable. PCI loans may be placed on nonaccrual status, including use of the cost recovery method or cash basis method of income recognition, if information is not available to reasonably estimate cash flows expected to be collected to compute its yield. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to PCI loans; such amount is subject to change over time based on the performance of such loans. The carrying value of PCI loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income.

As part of the fair value process and the subsequent accounting, the Company aggregates PCI loans into pools having common credit risk characteristics such as type and risk rating. Increases in expected cash flows over those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in the amount and changes in the timing of expected cash flows compared to those previously estimated decrease the accretable yield and usually result in a provision for loan losses and the establishment of an allowance for loan losses. As the accretable yield increases or decreases from changes in cash flow expectations, the offset is a decrease or increase to the nonaccretable difference. The accretable yield is measured at each financial reporting date based on information then currently available and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans.

PCI loans that are contractually past due are still considered to be accruing and performing as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual with interest income recognized on either a cash basis or as a reduction of the principal amount outstanding.

The Board of Directors and management review and approve the Bank’s loan policy and procedures on a regular basis to reflect issues such as regulatory and organizational structure changes, strategic planning revisions, concentrations of credit, loan delinquencies and nonperforming loans, problem loans, and policy adjustments.

Real estate loans are loans secured by liens or interest in real estate, to provide purchase, construction, and refinance on real estate properties. Commercial and industrial loans consist of commercial term loans, commercial lines of credit, and Small Business Administration (“SBA”) loans. Consumer loans consist of auto loans, credit cards, personal loans, and home equity lines of credit. We maintain management loan review and monitoring functions that review and monitor pass graded loans as well as problem loans to prevent further deterioration.

The majority of the Bank’s loan portfolio consists of commercial real estate and commercial and industrial loans. The Bank has been diversifying and monitoring commercial real estate loans based on property types, underwriting standards, and portfolio liquidity and management, and certain specified limits set forth in the Bank’s loan policy. To date, most of the Bank’s lending activity occurred within Southern California. With the acquisition of CBI, our lending activities in other areas of the country will increase.

Loans Receivable

Loans receivable consisted of the following as of the dates indicated:

	September 30, 2014								December 31,
	Non-PCI Loans			PCI Loans		Total			2013
	(In thousands)
Real estate loans:
Commercial property (1)
Retail	$	635,861		$	15,940	$	651,801		$	543,619
Hotel/Motel		452,405			14,206		466,611			322,927
Gas station		340,386			18,069		358,455			292,557
Other		805,696			15,715		821,411			731,617
Construction		4,146			—		4,146			—
Residential property		106,044			2,686		108,730			79,078
Total real estate loans		2,344,538			66,616		2,411,154			1,969,798
Commercial and industrial loans:
Commercial term		119,175			350		119,525			124,391
Commercial lines of credit		75,246			—		75,246			71,042
International loans		41,127			—		41,127			36,353
Total commercial and industrial loans		235,548			350		235,898			231,786
Consumer loans		28,849			58		28,907			32,505
Total gross loans		2,608,935			67,024		2,675,959			2,234,089
Allowance for loans losses		(51,179	)		—		(51,179	)		(57,555	)
Deferred loan costs		3,311			—		3,311			964
Loans receivable, net	$	2,561,067		$	67,024	$	2,628,091		$	2,177,498

⁽¹⁾ Includes owner-occupied property loans of $1.10 billion and $957.3 million as of September 30, 2014 and December 31, 2013, respectively.

Accrued interest on loans receivable was $5.8 million and $5.4 million at September 30, 2014 and December 31, 2013, respectively. At September 30, 2014 and December 31, 2013, loans receivable totaling $872.2 million and $568.7 million, respectively, were pledged to secure advances from the FHLB and the Federal Reserve Bank’s (“FRB”) federal discount window.

The following table details the information on the sales and reclassifications of loans receivable to loans held for sale (excluding PCI loans) by portfolio segment for the three months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer		Total Non-PCI
	(In thousands)
September 30, 2014
Balance at beginning of period	$	2,568		$	1,274		$	—	$	3,842
Origination of loans held for sale		15,198			3,031			—		18,229
Sales of loans held for sale		(12,135	)		(2,133	)		—		(14,268	)
Principal payoffs and amortization		(20	)		(26	)		—		(46	)
Balance at end of period	$	5,611		$	2,146		$	—	$	7,757
September 30, 2013
Balance at beginning of period	$	2,137		$	416		$	—	$	2,553
Origination of loans held for sale		15,634			1,501			—		17,135
Reclassification from loans held for sale to loans receivable		(2,118	)		(416	)		—		(2,534	)
Sales of loans held for sale		(10,725	)		(1,181	)		—		(11,906	)
Principal payoffs and amortization		(20	)		—			—		(20	)
Balance at end of period	$	4,908		$	320		$	—	$	5,228

For the three months ended September 30, 2014, there was no reclassification of Non-PCI loans receivable as Non-PCI loans held for sale, and Non-PCI loans held for sale of $14.3 million were sold. In addition, there was no reclassification from Non-PCI loans held for sale to Non-PCI loans receivable. For the three months ended September 30, 2013, there was no reclassification of Non-PCI loans receivable as Non-PCI loans held for sale, and Non-PCI loans held for sale of $11.9 million were sold.

The following table details the information on the sales and reclassifications of loans receivable to loans held for sale (excluding PCI loans) by portfolio segment for the nine months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer		Total Non-PCI
	(In thousands)
September 30, 2014
Balance at beginning of period	$	—		$	—		$	—	$	—
Origination of loans held for sale		29,591			5,207			—		34,798
Sales of loans held for sale		(23,953	)		(3,033	)		—		(26,986	)
Principal payoffs and amortization		(27	)		(28	)		—		(55	)
Balance at end of period	$	5,611		$	2,146		$	—	$	7,757
September 30, 2013
Balance at beginning of period	$	7,977		$	329		$	—	$	8,306
Origination of loans held for sale		58,725			4,387			—		63,112
Reclassification from loans receivable to loans held for sale		7,593			416			—		8,009
Reclassification from loans held for sale to loans receivable		(2,118	)		(416	)		—		(2,534	)
Sales of loans held for sale		(67,235	)		(4,391	)		—		(71,626	)
Principal payoffs and amortization		(34	)		(5	)		—		(39	)
Balance at end of period	$	4,908		$	320		$	—	$	5,228

For the nine months ended September 30, 2014, there was no reclassification of Non-PCI loans receivable as Non-PCI loans held for sale, and Non-PCI loans held for sale of $27.0 million were sold. In addition, there was no reclassification from Non-PCI loans held for sale to Non-PCI loans receivable. For the nine months ended September 30, 2013, Non-PCI loans receivable of $8.0 million were reclassified as Non-PCI loans held for sale, and Non-PCI loans held for sale of $71.6 million were sold.

Allowance for Loan Losses and Allowance for Off-Balance Sheet Items

Activity in the allowance for loan losses and allowance for off-balance sheet items was as follows for the periods indicated:

	As of and for the Three Months Ended						As of and for the Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
	(In thousands)
Allowance for loan losses:
Balance at beginning of period	$	51,886		$	59,876		$	57,555		$	63,305
Charge-offs		(1,418	)		(4,610	)		(5,569	)		(11,124	)
Recoveries on loans previously charged off		663			2,383			6,656			4,964
Net loan (charge-offs) recoveries		(755	)		(2,227	)		1,087			(6,160	)
Provision (negative provision) charged to operating expense		48			(10	)		(7,463	)		494
Balance at end of period	$	51,179		$	57,639		$	51,179		$	57,639
Allowance for off-balance sheet items:
Balance at beginning of period	$	1,592		$	1,320		$	1,247		$	1,824
(Negative provision) provision charged to operating expense		(48	)		10			297			(494	)
Balance at end of period	$	1,544		$	1,330		$	1,544		$	1,330

There was no allowance for loan losses on our PCI loans as of September 30, 2014. The allowance for off-balance sheet items is maintained at a level believed to be sufficient to absorb estimated probable losses related to these unfunded credit facilities. The determination of the allowance adequacy is 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. As of September 30, 2014 and 2013, the allowance for off-balance sheet items amounted to $1.5 million and $1.3 million, respectively. Net adjustments to the allowance for off-balance sheet items are included in the provision for credit losses.

The following table details the information on the allowance for loan losses by portfolio segment for the three months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer			Unallocated			Total
	(In thousands)
September 30, 2014
Allowance for loan losses:
Beginning balance	$	40,303		$	9,738		$	540		$	1,305		$	51,886
Charge-offs		(884	)		(499	)		(35	)		—			(1,418	)
Recoveries on loans previously charged off		293			365			5			—			663
(Negative provision) provision		179			260			(186	)		(205	)		48
Ending balance	$	39,891		$	9,864		$	324		$	1,100		$	51,179
Ending balance: individually evaluated for impairment	$	2,027		$	3,757		$	—		$	—		$	5,784
Ending balance: collectively evaluated for impairment	$	37,864		$	6,107		$	324		$	1,100		$	45,395
Loans receivable:
Ending balance	$	2,411,154		$	235,898		$	28,907		$	—		$	2,675,959
Ending balance: individually evaluated for impairment	$	35,654		$	11,970		$	1,758		$	—		$	49,382
Ending balance: collectively evaluated for impairment	$	2,308,884		$	223,578		$	27,091		$	—		$	2,559,553
Ending balance: acquired with deteriorated credit quality	$	66,616		$	350		$	58		$	—		$	67,024

	Real Estate			Commercial and Industrial			Consumer			Unallocated		Total
	(In thousands)
September 30, 2013
Allowance for loan losses:
Beginning balance	$	46,396		$	11,118		$	1,884		$	478	$	59,876
Charge-offs		(1,017	)		(3,575	)		(18	)		—		(4,610	)
Recoveries on loans previously charged off		1,641			737			5			—		2,383
Provision (negative provision)		(1,795	)		388			(232	)		1,629		(10	)
Ending balance	$	45,225		$	8,668		$	1,639		$	2,107	$	57,639
Ending balance: individually evaluated for impairment	$	564		$	1,475		$	330		$	—	$	2,369
Ending balance: collectively evaluated for impairment	$	44,661		$	7,193		$	1,309		$	2,107	$	55,270
Loans receivable:
Ending balance	$	1,921,659		$	203,547		$	34,065		$	—	$	2,159,271
Ending balance: individually evaluated for impairment	$	29,424		$	12,468		$	1,574		$	—	$	43,466
Ending balance: collectively evaluated for impairment	$	1,892,235		$	191,079		$	32,491		$	—	$	2,115,805

The following table details the information on the allowance for loan losses by portfolio segment for the nine months ended September 30, 2014 and 2013:

	Real Estate			Commercial and Industrial			Consumer			Unallocated			Total
	(In thousands)
September 30, 2014
Allowance for loan losses:
Beginning balance	$	43,550		$	11,287		$	1,427		$	1,291		$	57,555
Charge-offs		(2,073	)		(3,394	)		(102	)		—			(5,569	)
Recoveries on loans previously charged off		3,298			3,338			20			—			6,656
(Negative provision) provision		(4,884	)		(1,367	)		(1,021	)		(191	)		(7,463	)
Ending balance	$	39,891		$	9,864		$	324		$	1,100		$	51,179
Ending balance: individually evaluated for impairment	$	2,027		$	3,757		$	—		$	—		$	5,784
Ending balance: collectively evaluated for impairment	$	37,864		$	6,107		$	324		$	1,100		$	45,395
Loans receivable:
Ending balance	$	2,411,154		$	235,898		$	28,907		$	—		$	2,675,959
Ending balance: individually evaluated for impairment	$	35,654		$	11,970		$	1,758		$	—		$	49,382
Ending balance: collectively evaluated for impairment	$	2,308,884		$	223,578		$	27,091		$	—		$	2,559,553
Ending balance: acquired with deteriorated credit quality	$	66,616		$	350		$	58		$	—		$	67,024

	Real Estate			Commercial and Industrial			Consumer			Unallocated		Total
	(In thousands)
September 30, 2013
Allowance for loan losses:
Beginning balance	$	49,472		$	10,636		$	2,280		$	917	$	63,305
Charge-offs		(4,592	)		(6,314	)		(218	)		—		(11,124	)
Recoveries on loans previously charged off		2,923			1,981			60			—		4,964
Provision (negative provision)		(2,578	)		2,365			(483	)		1,190		494
Ending balance	$	45,225		$	8,668		$	1,639		$	2,107	$	57,639
Ending balance: individually evaluated for impairment	$	564		$	1,475		$	330		$	—	$	2,369
Ending balance: collectively evaluated for impairment	$	44,661		$	7,193		$	1,309		$	2,107	$	55,270
Loans receivable:
Ending balance	$	1,921,659		$	203,547		$	34,065		$	—	$	2,159,271
Ending balance: individually evaluated for impairment	$	29,424		$	12,468		$	1,574		$	—	$	43,466
Ending balance: collectively evaluated for impairment	$	1,892,235		$	191,079		$	32,491		$	—	$	2,115,805

Credit Quality Indicators

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

Pass and Pass-Watch: Pass and Pass-Watch loans, grades (0-4), are in compliance in all respects 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 incorporates all performing loans with no credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.

Special Mention: A Special Mention credit, 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 credit, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A credit 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 credit, 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 credit, 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.

As of September 30, 2014 and December 31, 2013, pass/pass-watch (grade 0-4), criticized (grade 5) and classified (grade 6-7) loans (excluding PCI loans), disaggregated by loan class, were as follows:

	As of September 30, 2014
	Pass/Pass-Watch (Grade 0-4)		Criticized (Grade 5)		Classified (Grade 6-7)		Total
	(In thousands)
Real estate loans:
Commercial property
Retail	$	620,511	$	12,821	$	2,529	$	635,861
Hotel/Motel		399,006		48,995		4,404		452,405
Gas station		320,501		10,054		9,831		340,386
Other		780,400		13,599		11,697		805,696
Construction		4,146		—		—		4,146
Residential property		103,812		122		2,110		106,044
Commercial and industrial loans:
Commercial term		108,908		1,315		8,952		119,175
Commercial lines of credit		74,286		—		960		75,246
International loans		38,676		—		2,451		41,127
Consumer loans		26,626		140		2,083		28,849
Total Non-PCI loans	$	2,476,872	$	87,046	$	45,017	$	2,608,935

	As of December 31, 2013
	Pass/Pass-Watch (Grade 0-4)		Criticized (Grade 5)		Classified (Grade 6-7)		Total
	(In thousands)
Real estate loans:
Commercial property
Retail	$	531,014	$	5,309	$	7,296	$	543,619
Hotel/Motel		308,483		1,796		12,648		322,927
Gas station		279,636		3,104		9,817		292,557
Other		690,481		8,524		32,612		731,617
Residential property		77,422		—		1,656		79,078
Commercial and industrial loans:
Commercial term		107,712		2,007		14,672		124,391
Commercial lines of credit		69,823		—		1,219		71,042
International loans		35,777		576		—		36,353
Consumer loans		30,044		163		2,298		32,505
Total Non-PCI loans	$	2,130,392	$	21,479	$	82,218	$	2,234,089

The following is an aging analysis of past due loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:

	As of September 30, 2014
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(In thousands)
Real estate loans:
Commercial property
Retail	$	1,927	$	146	$	182	$	2,255	$	633,606	$	635,861	$	—
Hotel/Motel		52		733		1,203		1,988		450,417		452,405		—
Gas station		4,781		794		544		6,119		334,267		340,386		—
Other		1,867		67		380		2,314		803,382		805,696		15
Construction		—		—		—		—		4,146		4,146		—
Residential property		113		121		486		720		105,324		106,044		—
Commercial and industrial loans:
Commercial term		1,410		587		2,873		4,870		114,305		119,175		—
Commercial lines of credit		274		197		—		471		74,775		75,246		—
International loans		251		—		—		251		40,876		41,127		—
Consumer loans		—		—		248		248		28,601		28,849		—
Total Non-PCI loans	$	10,675	$	2,645	$	5,916	$	19,236	$	2,589,699	$	2,608,935	$	15

	As of December 31, 2013
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(In thousands)
Real estate loans:
Commercial property
Retail	$	202	$	426	$	2,196	$	2,824	$	540,794	$	543,618	$	—
Hotel/Motel		1,087		—		1,532		2,619		320,308		322,927		—
Gas station		141		410		153		704		291,853		292,557		—
Other		423		2,036		839		3,298		728,320		731,618		—
Residential property		—		122		279		401		78,677		79,078		—
Commercial and industrial loans:
Commercial term		1,443		886		3,269		5,598		118,793		124,391		—
Commercial lines of credit		—		150		250		400		70,642		71,042		—
International loans		—		—		—		—		36,353		36,353		—
Consumer loans		311		42		77		430		32,075		32,505		—
Total Non-PCI loans	$	3,607	$	4,072	$	8,595	$	16,274	$	2,217,815	$	2,234,089	$	—

Impaired Loans

Loans are considered impaired when nonaccrual and principal or interest payments have been contractually past due for 90 days or more, unless the loan is both well-collateralized and in the process of collection; or they are classified as Troubled Debt Restructuring (“TDR”) loans to offer terms not typically granted by the Bank; or when current information or events make it unlikely to collect in full according to the contractual terms of the loan agreements; or there is a deterioration in the borrower’s financial condition that raises uncertainty as to timely collection of either principal or interest; or full payment of both interest and principal is in doubt according to the original contractual terms.

We evaluate loan impairment in accordance with applicable GAAP. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent, less costs to sell. If the measure of the impaired loan is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses or, alternatively, a specific allocation will be established. Additionally, loans that are considered impaired are specifically excluded from the quarterly migration analysis when determining the amount of the allowance for loan losses required for the period.

The allowance for collateral-dependent loans is determined by calculating the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals. The allowance for collateral-dependent loans varies from loan to loan based on the collateral coverage of the loan at the time of designation as nonperforming. We continue to monitor the collateral coverage, using recent appraisals, on these loans on a quarterly basis and adjust the allowance accordingly.

The following tables provide information on impaired loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:

	Recorded Investment		Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Related Allowance
	(In thousands)
September 30, 2014
Real estate loans:
Commercial property
Retail	$	4,443	$	4,543	$	1,940	$	2,503	$	256
Hotel/Motel		4,042		4,855		4,042		—		1,261
Gas station		14,152		14,681		13,692		460		166
Other		9,856		11,266		8,518		1,338		344
Residential property		3,161		3,292		3,161		—		—
Commercial and industrial loans:
Commercial term		7,958		8,408		1,914		6,044		3,469
Commercial lines of credit		2,874		2,976		2,692		182		183
International loans		1,138		1,138		460		678		105
Consumer loans		1,758		1,910		1,758		—		—
Total Non-PCI loans	$	49,382	$	53,069	$	38,177	$	11,205	$	5,784
December 31, 2013
Real estate loans:
Commercial property
Retail	$	6,244	$	6,332	$	3,767	$	2,477	$	305
Hotel/Motel		6,200		6,940		4,668		1,532		1,183
Gas station		9,389		9,884		8,592		797		209
Other		11,451		12,882		9,555		1,896		351
Residential property		2,678		2,773		2,678		—		—
Commercial and industrial loans:
Commercial term		13,834		14,308		2,929		10,905		3,806
Commercial lines of credit		614		686		173		441		252
International loans		1,087		1,087		286		801		78
Consumer loans		1,569		1,671		644		925		284
Total Non-PCI loans	$	53,066	$	56,563	$	33,292	$	19,774	$	6,468

	Average Recorded Investment for the Three Months Ended		Interest Income Recognized for the Three Months Ended		Average Recorded Investment for the Nine Months Ended		Interest Income Recognized for the Nine Months Ended
	(In thousands)
September 30, 2014
Real estate loans:
Commercial property
Retail	$	4,456	$	36	$	5,682	$	215
Hotel/Motel		4,206		102		4,149		232
Gas station		14,181		218		12,023		587
Other		9,898		232		10,716		682
Residential property		3,173		30		2,853		87
Commercial and industrial loans:
Commercial term		8,118		126		10,007		443
Commercial lines of credit		2,884		36		1,447		61
International loans		1,146		—		1,136		—
Consumer loans		1,765		16		1,619		46
Total Non-PCI loans	$	49,827	$	796	$	49,632	$	2,353
September 30, 2013
Real estate loans:
Commercial property
Retail	$	2,723	$	27	$	3,703	$	105
Hotel/Motel		6,377		127		4,752		384
Gas station		8,777		229		8,775		569
Other		8,699		243		9,512		779
Residential property		2,992		33		3,026		92
Commercial and industrial loans:
Commercial term		10,581		191		12,751		692
Commercial lines of credit		840		23		1,137		47
International loans		1,197		—		1,342		—
Consumer loans		1,581		27		1,624		54
Total Non-PCI loans	$	43,767	$	900	$	46,622	$	2,722

The following is a summary of interest foregone on impaired loans (excluding PCI loans) for the periods indicated:

	Three Months Ended						Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
	(In thousands)
Interest income that would have been recognized had impaired loans performed in accordance with their original terms	$	1,063		$	1,058		$	3,490		$	3,183
Less: Interest income recognized on impaired loans		(796	)		(900	)		(2,353	)		(2,722	)
Interest foregone on impaired loans	$	267		$	158		$	1,137		$	461

There were no commitments to lend additional funds to borrowers whose loans are included above.

Nonaccrual Loans

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 management believes 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 payments become current and full repayment is expected.

The following table details nonaccrual loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:

	September 30, 2014		December 31, 2013
	(In thousands)
Real estate loans:
Commercial property
Retail	$	2,062	$	2,946
Hotel/Motel		3,051		5,200
Gas station		5,208		2,492
Other		3,674		4,808
Residential property		1,516		1,365
Commercial and industrial loans:
Commercial term		6,060		7,146
Commercial lines of credit		674		423
Consumer loans		1,758		1,497
Total nonaccrual Non-PCI loans	$	24,003	$	25,877

The following table details nonperforming assets (excluding PCI loans) as of the dates indicated:

	September 30, 2014		December 31, 2013
	(In thousands)
Nonaccrual Non-PCI loans	$	24,003	$	25,877
Loans 90 days or more past due and still accruing		15		—
Total nonperforming Non-PCI loans		24,018		25,877
Other real estate owned		24,781		756
Total nonperforming assets	$	48,799	$	26,633

Loans on nonaccrual status, excluding loans held for sale, totaled $24.0 million as of September 30, 2014, compared to $25.9 million as of December 31, 2013, representing a 7.2 percent decrease. Delinquent loans (defined as 30 days or more past due), excluding loans held for sale, were $19.2 million as of September 30, 2014, compared to $16.3 million as of December 31, 2013, representing a 18.2 percent increase.

As of September 30, 2014, other real estate owned (“OREO”) consisted of forty properties, of which $20.2 million and $4.6 million were commercial and residential properties, respectively, with a combined carrying value of $24.8 million and no valuation adjustment. Of $24.8 million, $22.3 million was OREOs assumed in the CBI acquisition. As of December 31, 2013, there were three OREOs with a combined carrying value of $756,000 and a valuation adjustment of $56,000.

Troubled Debt Restructuring

In April 2011, the FASB issued ASU 2011-02, A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring, which clarifies the guidance for evaluating whether a restructuring constitutes a TDR. This guidance is effective for the first interim or annual period beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption. For the purposes of measuring impairment of loans that are newly considered impaired, the guidance should be applied prospectively for the first interim or annual period beginning on or after June 15, 2011.

As a result of the amendments in ASU 2011-02, we reassessed all restructurings that occurred on or after the beginning of the annual period and identified certain receivables as TDRs. Upon identifying those receivables as TDRs, we considered them impaired and applied the impairment measurement guidance prospectively for those receivables newly identified as impaired.

The following table details troubled debt restructurings (excluding PCI loans), disaggregated by concession type and by loan type, as of September 30, 2014 and December 31, 2013:

	Nonaccrual TDRs										Accrual TDRs
	Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total		Deferral of Principal		Deferral of Principal and Interest		Reduction of Principal and Interest		Extension of Maturity		Total
	(In thousands)
September 30, 2014
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	1,856	$	1,856	$	307	$	—	$	—	$	—	$	307
Hotel/Motel		1,158		727		—		—		1,885		991		—		—		—		991
Gas station		1,106		—		—		—		1,106		2,351		—		—		—		2,351
Other		—		1,532		465		59		2,056		3,310		—		792		1,378		5,480
Residential property		755		—		—		—		755		—		—		—		311		311
Commercial and industrial loans:
Commercial term		118		2		1,007		1,567		2,694		61		227		2,118		1,176		3,582
Commercial lines of credit		230		—		316		128		674		2,200		—		—		—		2,200
Consumer loans		—		—		135		—		135		—		—		—		—		—
Total Non-PCI loans	$	3,367	$	2,261	$	1,923	$	3,610	$	11,161	$	9,220	$	227	$	2,910	$	2,865	$	15,222
December 31, 2013
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	750	$	750	$	—	$	—	$	—	$	474	$	474
Hotel/Motel		1,272		758		—		—		2,030		1,000		—		—		—		1,000
Gas station		1,291		—		729		—		2,020		365		—		—		2,609		2,974
Other		403		1,279		555		—		2,237		2,956		—		1,253		2,027		6,236
Residential property		795		—		—		—		795		—		—		—		—		—
Commercial and industrial loans:
Commercial term		25		206		1,449		851		2,531		1,203		—		2,286		3,817		7,306
Commercial lines of credit		—		—		—		173		173		—		—		191		—		191
International loans		—		—		—		—		—		—		—		1,087		—		1,087
Consumer loans		—		—		—		—		—		—		—		149		—		149
Total Non-PCI loans	$	3,786	$	2,243	$	2,733	$	1,774	$	10,536	$	5,524	$	—	$	4,966	$	8,927	$	19,417

As of September 30, 2014 and December 31, 2013, total TDRs, excluding loans held for sale, were $26.4 million and $30.0 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise considered to the borrower, for economic or legal reasons related to the borrower’s financial difficulties. Loans are considered to be TDRs if they were restructured through payment structure modifications such as reducing the amount of principal and interest due monthly and/or allowing for interest only monthly payments for six months or less. All TDRs are impaired and are individually evaluated for specific impairment using one of these three criteria: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent.

At September 30, 2014 and December 31, 2013, TDRs, excluding loans held for sale, were subjected to specific impairment analysis, and $3.7 million and $2.8 million, respectively, of reserves relating to these loans were included in the allowance for loan losses.

The following table details troubled debt restructurings (excluding PCI loans), disaggregated by loan class, for the three months ended September 30, 2014 and 2013:

	September 30, 2014						September 30, 2013
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(In thousands, except number of loans)
Real estate loans:
Commercial property
Hotel/Motel (1)		—	$	—	$	—		1	$	1,000	$	1,000
Gas station (2)		1		2,014		1,991		1		107		91
Other (3)		1		395		385		2		1,011		1,014
Commercial and industrial loans:
Commercial term (4)		—		—		—		8		1,015		1,002
Commercial lines of credit (5)		1		2,092		2,200		—		—		—
Total Non-PCI loans		3	$	4,501	$	4,576		12	$	3,133	$	3,107

⁽¹⁾  Includes a modification of $1.0 million through a payment deferral for the three months ended September 30, 2013.

⁽²⁾  Includes a modification of $2.0 million through a payment deferral for the three months ended September 30, 2014, and a modification of $91,000 through a payment deferral for the three months ended September 30, 2013.

⁽³⁾  Includes a modification of $385,000 through a payment deferral for the three months ended September 30, 2014, and modifications of $365,000 through a payment deferral and reduction of principal or accrued interest and $649,000 through an extension of maturity for the three months ended September 30, 2013.

⁽⁴⁾  Includes modifications of $381,000 through payment deferrals and $621,000 through extensions of maturity for the three months ended September 30, 2013.

⁽⁵⁾  Includes a modification of $2.2 million through a payment deferral for the three months ended September 30, 2014.

During the three months ended September 30, 2014, we restructured monthly payments on three loans, with a net carrying value of $4.6 million as of September 30, 2014, through temporary payment structure modifications or re-amortization. For the restructured loans on accrual status, we determined that, based on the financial capabilities of the borrowers at the time of the loan restructuring and the borrowers’ past performance in the payment of debt service under the previous loan terms, performance and collection under the revised terms are probable.

The following table details troubled debt restructurings (excluding PCI loans), disaggregated by loan class, for the nine months ended September 30, 2014 and 2013:

	September 30, 2014						September 30, 2013
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(In thousands, except number of loans)
Real estate loans:
Commercial property
Retail (1)		1	$	2,002	$	1,856		—	$	—	$	—
Hotel/Motel (2)		—		—		—		1		1,000		1,000
Gas station (3)		1		2,040		1,991		1		113		91
Other (4)		3		1,422		1,386		3		1,176		1,144
Residential property (5)		1		317		311		—		—		—
Commercial and industrial loans:
Commercial term (6)		5		327		263		15		1,787		1,625
Commercial lines of credit (7)		3		2,366		2,563		—		—		—
International loans (8)		—		—		—		2		1,584		1,180
Consumer loans (9)		—		—		—		1		149		149
Total Non-PCI loans		14	$	8,474	$	8,370		23	$	5,809	$	5,189

⁽¹⁾  Includes a modification of $1.9 million through an extension of maturity for the nine months ended September 30, 2014.

⁽²⁾  Includes a modification of $1.0 million through an extension of maturity for the nine months ended September 30, 2013.

⁽³⁾  Includes a modification of $2.0 million through a payment deferral for the nine months ended September 30, 2014, and a modification of $91,000 a payment deferral for the nine months ended September 30, 2013.

⁽⁴⁾  Includes modifications of $1.3 million through payment deferrals and $59,000 through an extension of maturity for the nine months ended September 30, 2014, and modifications of $356,000 through a payment deferral, $130,000 through a reduction of principal or accrued interests and $649,000 through an extension of maturity for the nine months ended September 30, 2013.

⁽⁵⁾  Includes a modification of $311,000 through an extension of maturity for the nine months ended September 30, 2014.

⁽⁶⁾  Includes modifications of $39,000 through a payment deferral, $51,000 through reductions of principal or accrued interest and $173,000 through an extension of maturity for the nine months ended September 30, 2014, and modifications of $388,000 through payment deferrals and $1.2 million through extensions of maturity for the nine months ended September 30, 2013.

⁽⁷⁾  Includes modifications of $2.4 million through payment deferrals and $134,000 through a reduction of principal or accrued interest for the nine months ended September 30, 2014.

⁽⁸⁾  Includes modifications of $1.2 million through reductions of principal or accrued interest for the nine months ended September 30, 2013.

⁽⁹⁾  Includes a modification of $149,000 through a reduction of principal or accrued interest for the nine months ended September 30, 2013.

During the nine months ended September 30, 2014, we restructured monthly payments on 14 loans, with a net carrying value of $8.4 million as of September 30, 2014, through temporary payment structure modifications or re-amortization. For the restructured loans on accrual status, we determined that, based on the financial capabilities of the borrowers at the time of the loan restructuring and the borrowers’ past performance in the payment of debt service under the previous loan terms, performance and collection under the revised terms are probable.

The following table details troubled debt restructurings, excluding PCI loans, that defaulted subsequent to the modifications occurring within the previous twelve months, disaggregated by loan class, for the three and nine months ended September 30, 2014 and 2013, respectively:

	Three Months Ended								Nine Months Ended
	September 30, 2014				September 30, 2013				September 30, 2014				September 30, 2013
	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
	(In thousands, except number of loans)
Real estate loans:
Commercial property
Retail		1	$	1,856		—	$	—		1	$	1,856		—	$	—
Other		—		—		1		130		—		—		1		130
Commercial and industrial loans:
Commercial term		2		47		—		—		2		47		1		29
Commercial lines of credit		2		412		—		—		3		546		—		—
Total Non-PCI loans		5	$	2,315		1	$	130		6	$	2,449		2	$	159

Purchased Credit Impaired Loans

As part of the CBI acquisition during the third quarter ended September 30, 2014, the Company purchased loans for which there was, at acquisition, evidence of deterioration of credit quality subsequent to origination and it was probable, at acquisition, that all contractually required payments would not be collected. The following table presents the outstanding balance and carrying amount of those PCI loans as of the dates indicated:

	Carrying Amount			Accretable Yield
	(In thousands)
Balance at January 1, 2014	$	—		$	—
Additions from CBI acquisition at August 31, 2014		75,878			(22,858	)
Accretion		491			491
Payment received		(5,892	)		—
Disposals/transfers to OREO		(3,453	)		212
Balance at September 30, 2014	$	67,024		$	(22,155	)

As of September 30, 2014, pass/pass-watch (grade 0-4), criticized (grade 5) and classified (grade 6-7) PCI loans, disaggregated by loan class, were as follows:

	As of September 30, 2014
	Pass/Pass-Watch (Grade 0-4)		Criticized (Grade 5)		Classified (Grade 6-7)		Total
Real estate loans:
Commercial property
Retail	$	2,939	$	215	$	12,786	$	15,940
Hotel/Motel		248		—		13,958		14,206
Gas station		10,200		1,205		6,664		18,069
Other		2,154		—		13,561		15,715
Residential property		—		—		2,686		2,686
Commercial and industrial loans:
Commercial term		—		—		350		350
Consumer loans		—		—		58		58
Total PCI loans	$	15,541	$	1,420	$	50,063	$	67,024

Servicing Assets

The changes in servicing assets for the nine months ended September 30, 2014 and 2013 were as follows:

	Nine Months Ended September 30,
	2014			2013
	(In thousands)
Balance at beginning of period	$	6,833		$	5,542
Additions from CBI acquisition		1,458			—
Addition related to sale of SBA loans		871			1,996
Amortization		(1,318	)		(1,152	)
Balance at end of period	$	7,844		$	6,386

At September 30, 2014 and 2013, we serviced loans sold to unaffiliated parties in the amounts of $341.6 million and $330.4 million, respectively. These represented loans that have been 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 being serviced were SBA loans.

FDIC Loss Sharing Asset

The FDIC loss sharing asset related to the assumption of Single Family and Commercial Shared-Loss Agreement (“SLAs”) between CBI and the FDIC arising from the CBI’s acquisition of Mutual Bank. The loss sharing asset was measured at its fair value as of August 31, 2014 in conjunction with the CBI acquisition. There is a three-year recovery period which begins at the expiration of the Commercial SLA. During this period, 80% of any recoveries of previously charged-off and reimbursed Commercial SLA loans need to be reimbursed to the FDIC. As of September 30, 2014, the FDIC loss sharing asset was related to $7.7 million net receivable from the FDIC. Single-family loans under the Single family SLA as of September 30, 2014 were $3.7 million.

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Subordinated Debentures and Rescinded Stock Obligation

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Subordinated Debentures and Rescinded Stock Obligation

Note 8 — Subordinated Debentures and Rescinded Stock Obligation

Subordinated Debentures

During the third quarter of 2014 with the acquisition of CBI, the Company assumed CBI’s Junior Subordinated Deferrable Interest Debentures (“Subordinated Debentures”) with a notional balance of $26.8 million and an estimated fair value of $18.5 million. The $8.3 million discount will be amortized to interest expense over the remaining term. In December 2005, a trust was formed by CBI and issued $26.0 million Trust Preferred Securities (“TPS”) at 6.26 percent fixed rate for the first five years and a variable rate at the 3 month LIBOR plus 140 basis thereafter and invested the proceeds Subordinated Debentures. The Subordinated Debentures will mature on December 31, 2035, which date may be shortened to, at the Bank’s option if certain conditions are met. The TPS will be subject to mandatory redemption if the Subordinated Debentures are repaid by the Bank. Interest is payable quarterly, and the Bank has the option to defer interest payments on the Subordinated Debentures from time to time for a period not to exceed five consecutive years. Interest expense related to the amortization discount was 35,000 for the three months ended September 30, 2014.

Rescinded Stock Obligation

Hanmi Finanical assumed a rescinded stock obligation of $15.7 million and related accrued interest payable of $4.9 million at the closing date. The obligation resulted from the issuance of CBI common shares more than what was legally authorized in 2009 and 2010. Interest has been accrued on the obligation with interest rates varying state to state. Interest expense of $87,000 was recorded in September 2014, reflecting a weighted average rate of 6.79%. Accrued interest on the obligation as of September 30, 2014 was $5.1 million. Hanmi Financial has been in the process of paying off the obligation since the acquisition date.

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Loans - Non-Accrual Loans, Disaggregated by Loan Class (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual Non-PCI loans	$ 24,003	$ 25,877
Real estate loans [Member] | Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual Non-PCI loans	2,062	2,946
Real estate loans [Member] | Hotel/Motel [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual Non-PCI loans	3,051	5,200
Real estate loans [Member] | Gas station [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual Non-PCI loans	5,208	2,492
Real estate loans [Member] | Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual Non-PCI loans	3,674	4,808
Real estate loans [Member] | Residential property [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual Non-PCI loans	1,516	1,365
Commercial and industrial loans [Member] | Commercial term [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual Non-PCI loans	6,060	7,146
Commercial and industrial loans [Member] | Commercial lines of credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual Non-PCI loans	674	423
Consumer loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total non-accrual Non-PCI loans	$ 1,758	$ 1,497

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Parenthetical) (Detail) (Non-recurring Basis [Member], USD $)	Sep. 30, 2014	Dec. 31, 2013
Impaired Loans [Member] | Real estate loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 33,600,000	$ 32,200,000
Impaired Loans [Member] | Commercial and industrial loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,200,000	2,800,000
Impaired Loans [Member] | Consumer loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,800,000	1,300,000
Other Real Estate Owned [Member] | Real estate loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-performing loans held for sale	24,800,000	756,000
Other Real Estate Owned [Member] | Central Bancorp, Inc [Member] | Real estate loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-performing loans held for sale	$ 22,300,000

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Loans - Troubled Debt Restructurings, Disaggregated by Type of Concession and by Loan Type (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Financing Receivable, Modifications [Line Items]
Non-Accrual TDRs, Deferral of Principal	$ 3,367	$ 3,786
Non-Accrual TDRs, Deferral of Principal and Interest	2,261	2,243
Non-Accrual TDRs, Reduction of Principal and Interest	1,923	2,733
Non-Accrual TDRs, Extension of Maturity	3,610	1,774
Non-Accrual TDRs, Total	11,161	10,536
Accrual TDRs, Deferral of Principal	9,220	5,524
Accrual TDRs, Deferral of Principal and Interest	227
Accrual TDRs, Reduction of Principal and Interest	2,910	4,966
Accrual TDRs, Extension of Maturity	2,865	8,927
Accrual TDRs	15,222	19,417
Consumer loans [Member]
Financing Receivable, Modifications [Line Items]
Non-Accrual TDRs, Reduction of Principal and Interest	135
Non-Accrual TDRs, Total	135
Accrual TDRs, Reduction of Principal and Interest		149
Accrual TDRs		149
Real estate loans [Member] | Retail [Member]
Financing Receivable, Modifications [Line Items]
Non-Accrual TDRs, Extension of Maturity	1,856	750
Non-Accrual TDRs, Total	1,856	750
Accrual TDRs, Deferral of Principal	307
Accrual TDRs, Extension of Maturity		474
Accrual TDRs	307	474
Real estate loans [Member] | Hotel/Motel [Member]
Financing Receivable, Modifications [Line Items]
Non-Accrual TDRs, Deferral of Principal	1,158	1,272
Non-Accrual TDRs, Deferral of Principal and Interest	727	758
Non-Accrual TDRs, Total	1,885	2,030
Accrual TDRs, Deferral of Principal	991	1,000
Accrual TDRs	991	1,000
Real estate loans [Member] | Gas station [Member]
Financing Receivable, Modifications [Line Items]
Non-Accrual TDRs, Deferral of Principal	1,106	1,291
Non-Accrual TDRs, Reduction of Principal and Interest		729
Non-Accrual TDRs, Total	1,106	2,020
Accrual TDRs, Deferral of Principal	2,351	365
Accrual TDRs, Extension of Maturity		2,609
Accrual TDRs	2,351	2,974
Real estate loans [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Non-Accrual TDRs, Deferral of Principal		403
Non-Accrual TDRs, Deferral of Principal and Interest	1,532	1,279
Non-Accrual TDRs, Reduction of Principal and Interest	465	555
Non-Accrual TDRs, Extension of Maturity	59
Non-Accrual TDRs, Total	2,056	2,237
Accrual TDRs, Deferral of Principal	3,310	2,956
Accrual TDRs, Reduction of Principal and Interest	792	1,253
Accrual TDRs, Extension of Maturity	1,378	2,027
Accrual TDRs	5,480	6,236
Real estate loans [Member] | Residential property [Member]
Financing Receivable, Modifications [Line Items]
Non-Accrual TDRs, Deferral of Principal	755	795
Non-Accrual TDRs, Total	755	795
Accrual TDRs, Extension of Maturity	311
Accrual TDRs	311
Commercial and industrial loans [Member] | Commercial term [Member]
Financing Receivable, Modifications [Line Items]
Non-Accrual TDRs, Deferral of Principal	118	25
Non-Accrual TDRs, Deferral of Principal and Interest	2	206
Non-Accrual TDRs, Reduction of Principal and Interest	1,007	1,449
Non-Accrual TDRs, Extension of Maturity	1,567	851
Non-Accrual TDRs, Total	2,694	2,531
Accrual TDRs, Deferral of Principal	61	1,203
Accrual TDRs, Deferral of Principal and Interest	227
Accrual TDRs, Reduction of Principal and Interest	2,118	2,286
Accrual TDRs, Extension of Maturity	1,176	3,817
Accrual TDRs	3,582	7,306
Commercial and industrial loans [Member] | Commercial lines of credit [Member]
Financing Receivable, Modifications [Line Items]
Non-Accrual TDRs, Deferral of Principal	230
Non-Accrual TDRs, Reduction of Principal and Interest	316
Non-Accrual TDRs, Extension of Maturity	128	173
Non-Accrual TDRs, Total	674	173
Accrual TDRs, Deferral of Principal	2,200
Accrual TDRs, Reduction of Principal and Interest		191
Accrual TDRs	2,200	191
Commercial and industrial loans [Member] | International loans [Member]
Financing Receivable, Modifications [Line Items]
Accrual TDRs, Reduction of Principal and Interest		1,087
Accrual TDRs		$ 1,087

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Loans - Summary of Interest Foregone on Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Receivables [Abstract]
Interest income that would have been recognized had impaired loans performed in accordance with their original terms	$ 1,063	$ 1,058	$ 3,490	$ 3,183
Less: Interest income recognized on impaired loans	(796)	(900)	(2,353)	(2,722)
Interest foregone on impaired loans	$ 267	$ 158	$ 1,137	$ 461

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Earnings Per Share - Reconciliation of Components Used to Derive Basic and Diluted EPS (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]
Income from continuing operations, net of taxes	$ 13,264		$ 10,315	$ 35,764	$ 29,769
(Loss) income from discontinued operations, net of taxes			70	(444)	161
Net income	13,264		10,385	35,320	29,930
Income from continuing operations, net of taxes	13,264		10,315	35,764	29,769
(Loss) income from discontinued operations, net of taxes			70	(444)	161
Net income	$ 13,264		$ 10,385	$ 35,320	$ 29,930
Income from continuing operations, net of taxes	31,708,581		31,621,049	31,683,288	31,583,897
Basic EPS	31,708,581		31,621,049	31,683,288	31,583,897
Effect of dilutive securities - options, warrants and unvested restricted stock	292,838		111,955	284,588	68,898
Income from continuing operations, net of taxes	32,001,419		31,733,004	31,967,876	31,652,795
Diluted EPS	32,001,419		31,733,004	31,967,876	31,652,795
Per Share Amount, Income from continuing operations, net of taxes	$ 0.42		$ 0.33	$ 1.13	$ 0.94
Per Share Amount, (Loss) income from discontinued operations, net of taxes				$ (0.02)	$ 0.01
Basic earnings per share	$ 0.42		$ 0.33	$ 1.11	$ 0.95
Per Share Amount, Effect of dilutive securities - options, warrants and unvested restricted stock
Per Share Amount, Income from continuing operations, net of taxes	$ 0.41		$ 0.33	$ 1.12	$ 0.94
Per Share Amount, (Loss) income from discontinued operations, net of taxes		$ 0.01		$ (0.02)	$ 0.01
Diluted earnings per share	$ 0.41		$ 0.33	$ 1.10	$ 0.95

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Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2014

Banking and Thrift [Abstract]

Capital Ratios of Hanmi Financial and Bank

The capital ratios of Hanmi Financial and the Bank as of September 30, 2014 and December 31, 2013 were as follows:

	Actual					Minimum Regulatory Requirement					Minimum to Be Categorized as “Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(In thousands)
September 30, 2014
Total capital (to risk-weighted assets):
Hanmi Financial	$	482,481		16.33	%	$	236,338		8.00	%		N/A		N/A
Hanmi Bank	$	482,802		16.28	%	$	237,193		8.00	%	$	296,492		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	445,357		15.08	%	$	118,169		4.00	%		N/A		N/A
Hanmi Bank	$	444,771		15.00	%	$	118,597		4.00	%	$	177,895		6.00	%
Tier 1 capital (to average assets):
Hanmi Financial	$	445,357		12.80	%	$	139,169		4.00	%		N/A		N/A
Hanmi Bank	$	444,771		12.81	%	$	138,926		4.00	%	$	173,658		5.00	%
December 31, 2013
Total capital (to risk-weighted assets):
Hanmi Financial	$	426,614		17.48	%	$	195,210		8.00	%		N/A		N/A
Hanmi Bank	$	409,095		16.79	%	$	194,880		8.00	%	$	243,600		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	395,763		16.26	%	$	97,605		4.00	%		N/A		N/A
Hanmi Bank	$	378,295		15.53	%	$	97,440		4.00	%	$	146,160		6.00	%
Tier 1 capital (to average assets):
Hanmi Financial	$	395,763		13.62	%	$	116,249		4.00	%		N/A		N/A
Hanmi Bank	$	378,295		13.05	%	$	115,984		4.00	%	$	144,980		5.00	%

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Investment Securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Summary of Investment Holdings [Line Items]
Available-for-Sale Within one year, Amortized Cost	$ 15,702
Available-for-Sale Over one year through five years, Amortized Cost	73,633
Available-for-Sale Over five years through ten years, Amortized Cost	139,745
Available-for-Sale Over ten years, Amortized Cost	100,305
Available-for-Sale, Amortized Cost	1,139,173	549,113
Available-for-Sale Within one year, Estimated Fair Value	15,721
Available-for-Sale Over one year through five years, Estimated Fair Value	73,247
Available-for-Sale Over five years through ten years, Estimated Fair Value	136,900
Available-for-Sale Over ten years, Estimated Fair Value	99,234
Available-for-Sale, Estimated Fair Value	1,128,624	530,926
Collateralized mortgage obligations [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale, Amortized Cost	197,784	130,636
Available-for-Sale, Estimated Fair Value	196,211	127,693
Mortgage-backed securities [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale, Amortized Cost	588,638	222,768
Available-for-Sale, Estimated Fair Value	584,157	217,059
Other securities [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale, Amortized Cost	22,916	3,030
Available-for-Sale, Estimated Fair Value	22,704	2,886
Equity security [Member]
Summary of Investment Holdings [Line Items]
Available-for-Sale, Amortized Cost	450
Available-for-Sale, Estimated Fair Value	$ 450

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Share-Based Compensation

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Note 13 — Share-Based Compensation

Share-Based Compensation Expense

For the three months ended September 30, 2014 and 2013, share-based compensation expense was $695,000 and $197,000, respectively, and the related tax benefits on non-qualified stock options were $317,000 and $0, respectively. For the nine months ended September 30, 2014 and 2013, share-based compensation expense was $1.7 million and $387,000, respectively, and the related tax benefits on non-qualified stock options were $500,000 and $32,000, respectively.

Unrecognized Share-Based Compensation Expense

As of September 30, 2014, unrecognized share-based compensation expense was as follows:

	Unrecognized Expense		Average Expected Recognition Period
	(In thousands)
Stock option awards	$	1,490		2.2 years
Restricted stock awards		2,822		2.6 years
Total unrecognized share-based compensation expense	$	4,312		2.4 years

The table below provides stock option information for the three months ended September 30, 2014:

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value of In-the- Money Options
	(In thousands, except share and per share data)
Options outstanding at beginning of period		581,913		$	24.32		8.6 years	$	2,168	(1)
Options granted		28,000		$	20.57		10.0 years
Options exercised		(687	)	$	12.54		8.2 years
Options forfeited		(1,876	)	$	12.54		8.2 years
Options expired		(2,875	)	$	109.71		3.3 years
Options outstanding at end of period		604,475		$	23.79		8.5 years	$	2,188	(2)
Options exercisable at end of period		194,757		$	37.21		7.2 years	$	871	(2)

⁽¹⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $21.08 as of June 30, 2014, over the exercise price, multiplied by the number of options.

⁽²⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $20.16 as of September 30, 2014, over the exercise price, multiplied by the number of options.

The table below provides stock option information for the nine months ended September 30, 2014:

	Number of Shares			Weighted- Average Exercise Price Per Share		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value of In-the- Money Options
	(In thousands, except share and per share data)
Options outstanding at beginning of period		546,595		$	28.09		8.4 years	$	3,384	(1)
Options granted		133,000		$	21.60		9.7 years
Options exercised		(34,382	)	$	12.54		7.9 years
Options forfeited		(9,751	)	$	12.54		8.2 years
Options expired		(30,987	)	$	106.26		.5 years
Options outstanding at end of period		604,475		$	23.79		8.5 years	$	2,188	(2)
Options exercisable at end of period		194,757		$	37.21		7.2 years	$	871	(2)

⁽¹⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $21.89 as of December 31, 2013, over the exercise price, multiplied by the number of options.

⁽²⁾  Intrinsic value represents the excess of the closing stock price on the last trading day of the period, which was $20.16 as of September 30, 2014, over the exercise price, multiplied by the number of options.

There were 687 and 34,382 stock options exercised during the three and nine months ended September 30, 2014, compared to 38,437 and 40,678 stock options exercised during the same periods in 2013.

Restricted Stock Awards

Restricted stock awards granted under the 2013 Equity Compensation Plan, which replaced the 2007 Equity Compensation Plan, generally become fully vested after three to five years of continued employment from the date of grant. Hanmi Financial becomes entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted stock awards when the restrictions are released and the shares are issued. Restricted stock awards are forfeited if officers and employees terminate prior to the lapsing of restrictions. Forfeitures of restricted stock awards are treated as cancelled shares.

The table below provides information for restricted stock awards for the three and nine months ended September 30, 2014:

	Three Months Ended					Nine Months Ended
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share		Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Restricted stock at beginning of period		166,332		$	18.46		116,082		$	16.43
Restricted stock granted		32,720		$	20.86		99,068		$	21.93
Restricted stock vested		(36,331	)	$	16.46		(51,429	)	$	17.53
Restricted stock forfeited		—		$	—		(1,000	)	$	22.25
Restricted stock at end of period		162,721		$	19.39		162,721		$	19.39

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Subsequent Events

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

Note 18 — Subsequent Events

Management has evaluated subsequent events through the date of issuance of the financial data included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014, or would be required to be recognized in the Consolidated Financial Statements (Unaudited) as of September 30, 2014.

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Liquidity - Additional Information (Detail) (USD $)	Sep. 30, 2014	Jun. 30, 2014 Financial_Institution	Dec. 31, 2013
Line of Credit Facility [Line Items]
Bank's FHLB borrowings	$ 110,000,000		$ 127,546,000
Line of credit		95,000,000
Number of financial institutions		3
Hanmi Bank [Member]
Line of Credit Facility [Line Items]
Broker deposits	99,000
Total borrowing capacity based on pledged collateral	669,200,000		343,300,000
Borrowing capacity available based on pledged collateral	559,200,000		215,800,000
Bank's FHLB borrowings	110,000,000		127,500,000
Borrowing percentage of assets	2.60%		4.17%
Amount available from borrowing source	65,100,000
Carrying value for loans pledged by Bank	89,400,000
Borrowings	0
Maximum borrowing capacity of line of credit			$ 100,000,000
Hanmi Bank [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Percentage of borrowings from FHLB	30.00%

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Investment Securities - Summary of Investment Securities Available for Sale (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 1,139,173	$ 549,113
Gross Unrealized Gain	686	782
Gross Unrealized Loss	11,235	18,969
Estimated Fair Value	1,128,624	530,926
Collateralized mortgage obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	197,784	130,636
Gross Unrealized Gain	146	274
Gross Unrealized Loss	1,719	3,217
Estimated Fair Value	196,211	127,693
Municipal bonds-tax exempt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,335	13,857
Gross Unrealized Gain	94	110
Gross Unrealized Loss		30
Estimated Fair Value	4,429	13,937
Municipal bonds-taxable [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	16,666	33,361
Gross Unrealized Gain	141	73
Gross Unrealized Loss	147	1,080
Estimated Fair Value	16,660	32,354
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	17,018	21,013
Gross Unrealized Gain	11	8
Gross Unrealized Loss	89	186
Estimated Fair Value	16,940	20,835
Mortgage-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	588,638	222,768
Gross Unrealized Gain	230	317
Gross Unrealized Loss	4,711	6,026
Estimated Fair Value	584,157	217,059
U.S. government agency securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	176,449	90,852
Gross Unrealized Loss	3,656	7,316
Estimated Fair Value	172,793	83,536
SBA loan pool securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	114,753	13,598
Gross Unrealized Gain	64
Gross Unrealized Loss	700	969
Estimated Fair Value	114,117	12,629
U.S. treasury securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	164	19,998
Gross Unrealized Loss	1	1
Estimated Fair Value	163	19,997
Other securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	22,916	3,030
Gross Unrealized Loss	212	144
Estimated Fair Value	22,704	2,886
Equity security [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	450
Estimated Fair Value	$ 450

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Acquisition - Summary Of Accretable Yield On Purchased Credit Impaired Loans Acquired (Detail) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2014
Receivables [Abstract]
Undiscounted contractual cash flows	$ 117,301
Nonaccretable discount	(18,565)
Undiscounted cash flow to be collected	98,736
Estimated fair value of PCI loans	75,878
Accretable yield	$ 22,858

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Consolidated Statements of Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 30, 2014
Income Statement [Abstract]
Gain on disposal	$ 51

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Share-Based Compensation - Unrecognized Share-Based Compensation Expense (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 4,312
Average Expected Recognition Period	2 years 4 months 24 days
Stock option awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	1,490
Average Expected Recognition Period	2 years 2 months 12 days
Restricted stock awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 2,822
Average Expected Recognition Period	2 years 7 months 6 days

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Acquisition

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Acquisition

Note 2 — Acquisition

Acquisition of Central Bancorp, Inc.

On August 31, 2014, Hanmi Financial completed its acquisition of CBI, the parent company of United Central Bank (“UCB”). In the merger with CBI, each share of CBI common stock was exchanged for $17.64 per share or $50 million in the aggregate. In addition, Hanmi Financial paid $28.7 million to redeem CBI preferred stock and cumulative unpaid dividends and $1.6 million for accrued interest payable on CBI subordinated debentures immediately prior to the consummation of the merger. The merger consideration was funded from consolidated cash of Hanmi Financial. At August 31, 2014, CBI had total assets, liabilities and equity of $1.26 billion, $1.17 billion and $86.8 million, respectively. Total loans and deposits were $294.0 million and $1.1 billion, respectively, at August 31, 2014.

CBI was headquartered in Garland, Texas and through UCB, operated 23 branch locations within Texas, Illinois, Virginia, New York, New Jersey and California. The combined companies operate as Hanmi Financial Corporation and Hanmi Bank, respectively, with banking operations under the Hanmi Bank brand. Following the acquisition, Hanmi Bank has expanded its geographic presence through a network of 49 branches located throughout the United States. Key strategic benefits of the merger include 1) access to highly attractive markets with large Asian-American communities, creating business opportunities by leveraging Hanmi Bank’s brand and business strategies, 2) ability to realize significant cost savings and operational efficiencies for the combined company, and 3) opportunity to prudently deploy capital at an attractive return for our shareholders.

In connection with the acquisition, the consideration paid, the provisional estimate of the fair value of the assets acquired and the liabilities assumed as of August 31, 2014 are summarized in the following table:

	(In thousands)
Consideration paid:
CBI Stockholders	$	50,000
Redemption of preferred stock and cumulative unpaid dividends		28,675
Accrued interest on subordinated debentures		1,566
		80,241
Assets acquired:
Cash and cash equivalents		197,209
Securities available for sale		663,497
Loans		294,032
Premises and equipment		17,735
Other real estate owned		28,027
Income tax assets, net		8,800
Core deposit intangible		2,213
FDIC loss sharing assets		9,692
Bank-owned life insurance		18,296
Other assets		16,428
Total assets acquired		1,255,929
Liabilities assumed:
Deposits		1,098,997
Subordinated debentures		18,473
Rescinded stock obligation		15,720
FHLB advances		10,000
Other liabilities		25,905
Total liabilities assumed		1,169,095
Total identifiable net assets	$	86,834
Bargain purchase gain, net of deferred taxes	$	6,593

The CBI acquisition was accounted for under the acquisition method of accounting pursuant to ASC 805, Business Combinations. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of acquisition date. The Company made significant estimates and exercised significant judgment in estimating the fair values and accounting for such acquired assets and assumed liabilities. Such fair values are preliminary estimates and are subject to adjustment for up to one year after the acquisition date or when additional information relative to the closing date fair values becomes available and such information is considered final, whichever is earlier. The fair values are based on provisional valuation estimates of the fair values of the acquired assets and assumed liabilities. The valuation of acquired loans, income taxes and the core deposit intangibles are based on a preliminary estimate and are subject to change as the provisional amounts are finalized. The provisional application of the acquisition method of accounting resulted in a bargain purchase gain of $6.6 million. The operations of CBI are included in our operating results since the acquisition date for the third quarter of 2014. Acquisition-related costs of $3.6 million for the nine months ended September 30, 2014 are expensed as incurred as merger and integration costs. These expenses are comprised primarily of system conversion costs and professional fees.

The $294.0 million estimated fair value of loans acquired from CBI was determined by utilizing a discounted cash flow methodology considering credit and interest rate risk. Cash flows were determined by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value based on a current market rate for similar loans. There was no carryover of CBI’s allowance for loan losses associated with the loans acquired as loans were initially recorded at fair value.

The following table summarizes the accretable yield on the purchased credit impaired loans acquired from the CBI merger at August 31, 2014.

	(In thousands)
Undiscounted contractual cash flows	$	117,301
Nonaccretable discount		(18,565	)
Undiscounted cash flow to be collected		98,736
Estimated fair value of PCI loans		75,878
Accretable yield	$	22,858

The core deposit intangible (“CDI”) of $2.2 million was recognized for the core deposits acquired from CBI. The CDI is amortized over its useful life of approximately ten years on an accelerated basis and reviewed for impairment at least quarterly. The amortization expense for the third quarter of 2014 was $33,000.

The fair value of savings and transactional deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. Expected cash flows were utilized for fair value calculation of the certificates of deposit based on the contractual terms of the certificates of deposit and the cash flows were discounted based on a current market rate for certificates of deposit with corresponding maturities. The premium for certificates of deposit was $11.3 million with $591,000 amortized in the third quarter of 2014.

The fair value of subordinated debentures was determined by estimating projected future cash flows and discounting them at a market rate of interest. A discount of $8.3 million was recognized for subordinated debentures, which will be amortized over their contractual term. The amortization for the third quarter of 2014 was $35,000.

Unaudited Pro Forma Results of Operations

The following table presents our unaudited pro forma results of operations for the periods presented as if the CBI acquisition had been completed on January 1, 2013. The unaudited pro forma results of operations include the historical accounts of Hanmi Financial and CBI and pro forma adjustments as may be required, including the amortization of intangibles with definite lives and the amortization or accretion of any premiums or discounts arising from fair value adjustments for assets acquired and liabilities assumed. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of our future operating results or operating results that would have occurred had the CBI acquisition been completed at the beginning of 2013. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(In thousands, except per share data)
Pro forma revenues (net interest income plus noninterest income)	$	62,427	$	55,727	$	170,923	$	182,135
Pro forma net income from continuing operations	$	18,359	$	12,826	$	43,546	$	47,201
Pro forma earnings per share from continuing operations:
Basic	$	0.58	$	0.41	$	1.37	$	1.49
Diluted	$	0.57	$	0.40	$	1.36	$	1.49

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Loans - Allowance for Loan Losses and Allowance for Off-Balance Sheet Items (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	$ 51,886	$ 59,876	$ 57,555	$ 63,305
Charge-offs	(1,418)	(4,610)	(5,569)	(11,124)
Recoveries on loans previously charged off	663	2,383	6,656	4,964
(Negative provision) provision charged to operating expense	(48)	10	7,463	(494)
Balance at end of period	51,179	57,639	51,179	57,639
Allowance for loan losses [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	51,886	59,876	57,555	63,305
Charge-offs	(1,418)	(4,610)	(5,569)	(11,124)
Recoveries on loans previously charged off	663	2,383	6,656	4,964
Net loan (charge-offs) recoveries	(755)	(2,227)	1,087	(6,160)
(Negative provision) provision charged to operating expense	48	(10)	(7,463)	494
Balance at end of period	51,179	57,639	51,179	57,639
Allowance for off-balance sheet items [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	1,592	1,320	1,247	1,824
(Negative provision) provision charged to operating expense	(48)	10	297	(494)
Balance at end of period	$ 1,544	$ 1,330	$ 1,544	$ 1,330

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Fair Value Measurements - Reconciliation and Income Statement Classification of Gains and Losses for All Assets and Liabilities (Detail) (USD $)	9 Months Ended
	Sep. 30, 2014
Stock warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning Balance	$ 2,000
Purchases, Issuances and Settlement	(2,000)
Realized Gains or Losses in Earnings
Unrealized Gains or Losses in Other Comprehensive Income
Municipal bonds-tax exempt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning Balance	748,000
Realized Gains or Losses in Earnings
Unrealized Gains or Losses in Other Comprehensive Income	(30,000)
Ending Balance	718,000
Equity security [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Purchases, Issuances and Settlement	450,000
Realized Gains or Losses in Earnings
Ending Balance	$ 450,000

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Loans - Troubled Debt Restructurings that Defaulted Subsequent to Modifications Occurring Within Previous Twelve Months, Disaggregated by Loan Class (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014 SecurityLoan	Sep. 30, 2013 SecurityLoan	Sep. 30, 2014 SecurityLoan	Sep. 30, 2013 SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of Loans	5	1	6	2
Recorded Investment	$ 2,315	$ 130	$ 2,449	$ 159
Real estate loans [Member] | Retail [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	1		1
Recorded Investment	1,856		1,856
Real estate loans [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans		1		1
Recorded Investment		130		130
Commercial and industrial loans [Member] | Commercial term [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	2		2	1
Recorded Investment	47		47	29
Commercial and industrial loans [Member] | Commercial lines of credit [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	2		3
Recorded Investment	$ 412		$ 546

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Fair Value Measurements (Policies)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

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

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Subordinated Debentures and Rescinded Stock Obligation - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended		3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Aug. 31, 2014	Sep. 30, 2014 Central Bancorp, Inc [Member] Subordinated Debentures [Member]	Sep. 30, 2014 Central Bancorp, Inc [Member] Subordinated Debentures [Member]	Dec. 31, 2005 Central Bancorp, Inc [Member] Subordinated Debentures [Member]
Debt Instrument [Line Items]
Subordinated debentures, notional amount				$ 26,800,000	$ 26,800,000	$ 26,000,000
Subordinated debentures	18,509,000	18,509,000		18,500,000	18,500,000
Debt instrument discount			8,300,000	8,300,000	8,300,000
Fixed interest rate						6.26%
Variable interest rate basis					3 month LIBOR plus 140 basis
Maturity date of subordinated debentures					Dec. 31, 2035
Frequency of interest payment					Quarterly
Amortization of subordinated debentures	35,000	36,000		35,000
Rescinded stock obligation	15,720,000	15,720,000
Accrued interest payable	5,100,000	5,100,000	4,900,000
Interest on rescinded stock obligation	$ 87,000	$ 87,000
Weighted average interest rate	6.79%	6.79%

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Off-Balance Sheet Commitments (Tables)

9 Months Ended

Sep. 30, 2014

Risks and Uncertainties [Abstract]

Distribution of Undisbursed Loan Commitments

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

	September 30, 2014		December 31, 2013
	(In thousands)
Commitments to extend credit	$	327,381	$	246,161
Standby letters of credit		9,140		8,926
Commercial letters of credit		3,877		4,179
Unused credit card lines		—		12,223
Total undisbursed loan commitments	$	340,398	$	271,489

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Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 12 — Fair Value Measurements

Fair Value Measurements

FASB 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 investment securities available for sale at fair value on a recurring basis. Certain other assets, such as loans held for sale, impaired loans, other real estate owned, and other intangible assets, 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:

Investment securities available for sale – The fair values of investment 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 investment securities include U.S. government and agency debentures and equity 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 investment securities primarily include mortgage-backed securities, municipal bonds, collateralized mortgage obligations, SBA loan pool securities, and equity securities in markets that are not 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 bonds is determined based on a proprietary model maintained by the broker-dealers. 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 investment 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.

As of September 30, 2014, we had a zero coupon tax credit municipal bond of $718,000 compared to $748,000 as of December 31, 2013. This bond was recorded at estimated fair value using a discounted cash flow method, and was measured on a recurring basis with Level 3 inputs. Key assumptions used in measuring the fair value of the tax credit bond as of September 30, 2014 were discount rate and cash flows. The discount rate was derived from the term structure of Bank Qualified (“BQ”) “BBB” rated municipal bonds, as the tax credit bond’s guarantee had the similar credit strength. The contractual future cash flows were the tax credits to be received for a remaining life of 0.48 year. We do not anticipate a significant deterioration of the tax credit bond’s credit quality. Management reviews the discount rate on an ongoing basis based on current market rates.

SBA loans held for sale – SBA loans held for sale are carried at the lower of cost or fair value. As of September 30, 2014 and December 31, 2013, we had $7.8 million and zero of SBA loans held for sale, respectively. Management obtains quotes, bids or pricing indication sheets on all or part of these loans directly from the purchasing financial institutions. Premiums received or to be received on the quotes, bids or pricing indication sheets are indicative of the fact that cost is lower than fair value. At September 30, 2014 and December 31, 2013, the entire balance of SBA loans held for sale was recorded at its cost. We record SBA loans held for sale on a nonrecurring basis with Level 2 inputs.

Impaired loans, excluding PCI loans – Nonaccrual loans and performing restructured loans are considered impaired for reporting purposes and are measured and recorded at fair value on a non-recurring basis. Nonaccrual Non-PCI loans with an unpaid principal balance over $100,000 and all performing restructured loans are reviewed individually for the amount of impairment, if any. Nonaccrual Non-PCI loans with an unpaid principal balance of $100,000 or less are evaluated for impairment collectively. The Company does not record loans at fair value on a recurring basis. However, from time to time, nonrecurring fair value adjustments to collateral dependent impaired loans are recorded based on either the current appraised value of the collateral, a Level 2 measurement, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, a Level 3 measurement.

Other real estate owned – Fair value of OREO is based primarily on third party appraisals, less costs to sell and result in a Level 2 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.

Nonperforming loans held for sale – We reclassify certain nonperforming loans as held for sale when we decide to sell those loans. The fair value of nonperforming loans held for sale is generally based upon the quotes, bids or sales contract prices which approximate their fair value. Nonperforming loans held for sale are recorded at estimated fair value less anticipated liquidation cost. As of September 30, 2014 and December 31, 2013, we did not have nonperforming loans held for sale, which are measured on a nonrecurring basis with Level 2 inputs.

Stock warrants – The Company followed the guidance of FASB ASC Topic 815-40, Derivatives and Hedging—Contracts in Entity’s Own Stock, which establishes a framework for determining whether certain freestanding and embedded instruments are indexed to a company’s own stock for purposes of evaluation of the accounting for such instruments under existing accounting literature. Under GAAP, the issuer is required to measure the fair value of the equity instruments in the transaction as of earlier of (i) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty’s performance is complete. The fair value of the warrants was recorded as a liability and a cost of equity, which was determined by the Black-Scholes option pricing modeling and was measured on a recurring basis with Level 3 inputs.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

There were no transfers of assets between Level 1 and Level 2 of the fair value hierarchy for the three months ended September 30, 2014. As of September 30, 2014 and December 31, 2013, assets and liabilities measured at fair value on a recurring basis are as follows:

	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs with No Active Market with Identical Characteristics		Significant Unobservable Inputs		Balance
	(In thousands)
September 30, 2014
Assets:
Securities available for sale:
Mortgage-backed securities	$	—	$	584,157	$	—	$	584,157
Collateralized mortgage obligations		—		196,211		—		196,211
U.S. government agency securities		172,793		—		—		172,793
SBA loan pools securities		—		114,117		—		114,117
Municipal bonds-tax exempt		—		3,711		718		4,429
Municipal bonds-taxable		—		16,660		—		16,660
Corporate bonds		—		16,940		—		16,940
U.S. treasury securities		163		—		—		163
Other securities		—		22,704		—		22,704
Equity security		—		—		450		450
Total securities available for sale	$	172,956	$	954,500	$	1,168	$	1,128,624
December 31, 2013
Assets:
Securities available for sale:
Mortgage-backed securities	$	—	$	217,059	$	—	$	217,059
Collateralized mortgage obligations		—		127,693		—		127,693
U.S. government agency securities		83,536		—		—		83,536
SBA loan pools securities		—		12,629		—		12,629
Municipal bonds-tax exempt		—		13,189		748		13,937
Municipal bonds-taxable		—		32,354		—		32,354
Corporate bonds		—		20,835		—		20,835
U.S. treasury securities		19,997		—		—		19,997
Other securities		—		2,886		—		2,886
Total securities available for sale	$	103,533	$	426,645	$	748	$	530,926
Liabilities:
Stock warrants	$	—	$	—	$	2	$	2

The table below presents a reconciliation and income statement classification of gains and losses for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2014:

	Beginning Balance as of January 1, 2014		Purchases, Issuances and Settlement			Realized Gains or Losses in Earnings		Unrealized Gains or Losses in Other Comprehensive Income			Ending Balance as of September 30, 2014
	(In thousands)
Assets:
Municipal bonds-tax exempt (1)	$	748	$	—		$	—	$	(30	)	$	718
Equity securities (2)	$	—	$	450		$	—	$	—		$	450
Liabilities:
Stock warrants (3)	$	2	$	(2	)	$	—	$	—		$	—

⁽¹⁾  Reflects a zero coupon tax credit municipal bond. As the Company was not able to obtain a price from independent external pricing service providers, the discounted cash flow method was used to determine its fair value. The bond carried a par value of $700,000 and an amortized value of $700,000 with a remaining life of 0.48 year at September 30, 2014.

⁽²⁾  Reflects two equity securities that are not actively traded. The fair value of one equity security with a fair value of $250,000 was computed using valuation multiples (price to book and price to earnings) derived from market transactions for comparable companies. The other equity security with a fair value of $200,000 was computed using valuation multiples (price to book and price to earnings) derived from 1) market transactions for comparable companies, and 2) publicly-traded comparable companies. In addition to these approaches, the Company considered a discounted cash flow approach, which cash flows, calculated based on a redemption or liquidation policy of the equity issuer, are discounted back to the present using a 10.5% discount rate.

⁽³⁾  Reflects warrants for our common stock issued in connection with services Cappello Capital Corp. provided to us as a placement agent in connection with our best efforts public offering and as our financial adviser in connection with our completed rights offering. The warrants were immediately exercisable when issued at an exercise price of $9.60 per share of our common stock and expire on October 14, 2015. There were no outstanding stock warrants as of September 30, 2014. See “Note 9 – Stockholders’ Equity” for more details.

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

As of September 30, 2014 and December 31, 2013, assets and liabilities measured at fair value on a non-recurring basis are as follows:

	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs With No Active Market With Identical Characteristics		Significant Unobservable Inputs		Loss During the   Nine Months Ended   September 30, 2014
	(In thousands)
September 30, 2014
Assets:
Impaired loans (excluding PCI loans) (1)	$	—	$	34,373	$	2,199	$	2,905
Other real estate owned (2)		—		24,781		—		—

	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs With No Active Market With Identical Characteristics		Significant Unobservable Inputs		Loss During the Twelve Months Ended December 31, 2013
	(In thousands)
December 31, 2013
Assets:
Impaired loans (3)	$	—	$	36,254	$	1,738	$	2,431
Other real estate owned (4)		—		756		—		10

⁽¹⁾  Include real estate loans of $33.6 million, commercial and industrial loans of $1.2 million, and consumer loans of $1.8 million.

⁽²⁾  Includes properties from the foreclosure of real estate loans of $24.8 million of which $22.3 million was acquired from CBI.

⁽³⁾  Include real estate loans of $32.2 million, commercial and industrial loans of $2.8 million, and consumer loans of $1.3 million.

⁽⁴⁾  Includes properties from the foreclosure of real estate loans of $756,000.

FASB ASC 825 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 at fair value 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.

The estimated fair values of financial instruments were as follows:

	September 30, 2014
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	197,016	$	197,016	$	—	$	—
Securities available for sale		1,128,624		172,956		954,500		1,168
Loans receivable, net of allowance for loan losses		2,628,091		—		—		2,686,838
Loans held for sale		7,757		—		7,757		—
Accrued interest receivable		9,880		9,880		—		—
Servicing assets		7,844		—		—		7,844
Investment in federal home loan bank stock		17,579		17,579		—		—
Investment in federal reserve bank stock		12,273		12,273		—		—
Financial liabilities:
Noninterest-bearing deposits		1,029,343		—		1,029,343		—
Interest-bearing deposits		2,568,811		—		—		2,565,504
Borrowings		128,509		—		—		128,509
Accrued interest payable		3,030		3,030		—		—
Off-balance sheet items:
Commitments to extend credit		327,381		—		—		327,381
Standby letters of credit		9,140		—		—		9,140

	December 31, 2013
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	179,357	$	179,357	$	—	$	—
Securities available for sale		530,926		103,533		426,645		748
Loans receivable, net of allowance for loan losses		2,177,498		—		—		2,204,069
Loans held for sale		—		—		—		—
Accrued interest receivable		7,055		7,055		—		—
Servicing assets		6,833		—		—		6,833
Investment in federal home loan bank stock		14,060		14,060		—		—
Investment in federal reserve bank stock		11,196		11,196		—		—
Financial liabilities:
Noninterest-bearing deposits		819,015		—		819,015		—
Interest-bearing deposits		1,693,310		—		—		1,693,739
Borrowings		127,546		—		—		247,249
Accrued interest payable		3,366		3,366		—		—
Off-balance sheet items:
Commitments to extend credit		246,161		—		—		246,161
Standby letters of credit		8,926		—		—		8,926

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

Investment securities – The fair value of investment securities, consisting of investment 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, 2 and 3).

        Loans receivable, net of allowance for loan losses – Loans receivable include Non-PCI loans, PCI loans and Non-PCI impaired loans. The fair value of Non-PCI loans receivable is estimated based on the discounted cash flow approach. The discount rate was derived from the associated yield curve plus spreads and reflects the offering rates offered by the Bank for loans with similar financial characteristics. Yield curves are constructed by product type using the Bank’s loan pricing model for like-quality credits. The discount rates used in the Bank’s model represent the rates the Bank would offer to current borrowers for like-quality credits. These rates could be different from what other financial institutions could offer for these loans. No adjustments have been made for changes in credit within the loan portfolio. It is our opinion that the allowance for loan losses relating to performing and nonperforming loans results in a fair valuation of such loans. Additionally, the fair value of our loans may differ significantly from the values that would have been used had a ready market existed for such loans and may differ materially from the values that we may ultimately realize (Level 3).

The fair value of PCI loans receivable is estimated based on discounted expected cash flows. Increases in expected cash flows and improvements in the timing of cash flows over those previously estimated increase the amount of accretable yield and are recognized as an increase in yield and interest income prospectively. Decreases in the amount and delays in the timing of expected cash flows compared to those previously estimated decrease the amount of accretable yield and usually result in a provision for loan losses and the establishment of an allowance for loan losses (Level 3).

The fair value of impaired loans, excluding PCI 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 impaired loans are recorded based on the current appraised value of the collateral (Level 3).

Loans held for sale – Loans held for sale are carried at the lower of aggregate cost or fair market value, as determined based upon quotes, bids or sales contract prices, or as may be assessed based upon the fair value of the collateral which is obtained from recent real estate appraisals (Level 2). Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustment is typically significant and results in Level 3 classification of the inputs for determining fair value.

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

Servicing assets – Servicing asset is carried at its implied fair value. The fair value of the servicing asset is estimated by discounting future cash flows using market-based discount rates and prepayments speeds. The discount rate is based on the current U.S. Treasury yield curve, as published by the Department of the Treasury, plus a spread for the marketplace risk associated with these assets. (Level 3)

Investment in Federal Home Loan Bank and Federal Reserve Bank stock – The carrying amounts of investment in FHLB and FRB stock approximate fair value as such stock may be resold to the issuer at carrying 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 – 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 3).

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

Stock warrants – The fair value of stock warrants is determined by the Black-Scholes option pricing model. The expected stock volatility is based on historical volatility of our common stock over expected term of the warrants. The expected life assumption is based on the contract term and dividend yield is based on the Company’s annual dividend divided by its current share price. The risk free rate used for the warrants is equal to the zero coupon rate in effect at the end of the measurement period (Level 3).

Commitments to extend credit and standby letters of credit – The fair values of commitments to extend credit and standby letters of credit are based upon the difference between the current value of similar loans and the price at which the Bank has committed to make the loans (Level 3).