10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the Quarterly Period Ended March 31, 2021

or

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

For the Transition Period From                  To

Commission File Number: 000-30421

HANMI FINANCIAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

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

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

(213) 382-2200

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

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

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

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

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

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

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

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

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

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

As of May 3, 2021, there were 30,694,659 outstanding shares of the Registrant’s Common Stock.

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

Three Months Ended March 31, 2021

Table of Contents

	Part I – Financial Information
Item 1.	Financial Statements	3
	Consolidated Balance Sheets at March 31, 2021 (unaudited) and December 31, 2020	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	39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
Item 4.	Controls and Procedures	53
	Part II – Other Information
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3.	Defaults Upon Senior Securities	54
Item 4.	Mine Safety Disclosures	54
Item 5.	Other Information	54
Item 6.	Exhibits	55
Signatures		56

2

Part I — Financial Information

Item 1. Financial Statements

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)

	March 31,			December 31,
	2021			2020
	(Unaudited)
Assets
Cash and due from banks	$	646,445		$	391,849
Securities available for sale, at fair value (amortized cost of $787,675 as of March 31, 2021 and $749,458 as of December 31, 2020)		780,114			753,781
Loans held for sale, at the lower of cost or fair value		32,674			8,568
Loans receivable, net of allowance for credit losses of $88,392 as of March 31, 2021 and $90,426 as of December 31, 2020		4,728,759			4,789,742
Accrued interest receivable		14,806			16,363
Premises and equipment, net		26,398			26,431
Customers' liability on acceptances		735			1,319
Servicing assets		6,150			6,212
Goodwill and other intangible assets, net		11,558			11,612
Federal Home Loan Bank ("FHLB") stock, at cost		16,385			16,385
Income tax assets		42,665			42,704
Bank-owned life insurance		54,150			53,894
Prepaid expenses and other assets		77,562			83,028
Total assets	$	6,438,401		$	6,201,888
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,174,624		$	1,898,766
Interest-bearing		3,335,199			3,376,242
Total deposits		5,509,823			5,275,008
Accrued interest payable		2,352			4,564
Bank's liability on acceptances		735			1,319
Borrowings		150,000			150,000
Subordinated debentures ($126,800 face amount less unamortized discount and debt issuance costs of $7,676 and $7,828 as of March 31, 2021 and December 31, 2020, respectively)		119,124			118,972
Accrued expenses and other liabilities		74,545			74,981
Total liabilities		5,856,579			5,624,844
Stockholders' equity:
Preferred Stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of March 31, 2021 and December 31, 2020		—			—
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 33,585,181 shares (30,682,533 shares outstanding) as of March 31, 2021 and issued 33,560,801 shares (30,717,835 shares outstanding) as of December 31, 2020		33			33
Additional paid-in capital		578,958			578,360
Accumulated other comprehensive (loss) income, net of tax benefit of $2,268 as of March 31, 2021 and net of tax expense of $1,247 as of December 31, 2020		(5,293	)		3,076
Retained earnings		128,211			114,621
Less treasury stock; 2,902,648 shares as of March 31, 2021 and 2,842,966 shares as of December 31, 2020		(120,087	)		(119,046	)
Total stockholders' equity		581,822			577,044
Total liabilities and stockholders' equity	$	6,438,401		$	6,201,888

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

3

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(in thousands, except share and per share data)

	Three Months Ended March 31,
	2021		2020
Interest and dividend income:
Interest and fees on loans receivable	$	50,614	$	54,648
Interest on securities		1,140		3,655
Dividends on FHLB stock		206		289
Interest on deposits in other banks		96		333
Total interest and dividend income		52,056		58,925
Interest expense:
Interest on deposits		3,958		12,742
Interest on borrowings		478		496
Interest on subordinated debentures		1,619		1,712
Total interest expense		6,055		14,950
Net interest income before credit loss expense		46,001		43,975
Credit loss expense		2,109		15,739
Net interest income after credit loss expense		43,892		28,236
Noninterest income:
Service charges on deposit accounts		2,357		2,400
Trade finance and other service charges and fees		1,034		986
Gain on sale of Small Business Administration ("SBA") loans		4,125		1,154
Net gain on sales of securities		99		—
Other operating income		2,193		1,683
Total noninterest income		9,808		6,223
Noninterest expense:
Salaries and employee benefits		16,820		17,749
Occupancy and equipment		4,595		4,475
Data processing		2,926		2,669
Professional fees		1,447		1,915
Supplies and communications		757		781
Advertising and promotion		359		734
Other operating expenses		2,631		2,745
Total noninterest expense		29,535		31,068
Income before tax		24,165		3,391
Income tax expense		7,506		1,041
Net income	$	16,659	$	2,350
Basic earnings per share	$	0.54	$	0.08
Diluted earnings per share	$	0.54	$	0.08
Weighted-average shares outstanding:
Basic		30,461,681		30,469,022
Diluted		30,473,970		30,472,899

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 March 31,
	2021			2020
Net income	$	16,659		$	2,350
Other comprehensive income (loss), net of tax:
Unrealized gain on securities:
Unrealized holding gain arising during period		(11,785	)		11,924
Less: reclassification adjustment for net gain included in net income		(99	)		—
Income tax benefit (expense) related to items of other comprehensive income		3,515			(3,439	)
Other comprehensive income (loss), net of tax		(8,369	)		8,485
Comprehensive income	$	8,290		$	10,835

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

5

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three Months Ended March 31, 2021 and March 31, 2020

(in thousands, except share data)

	Common Stock - Number of Shares									Stockholders' Equity
														Accumulated
												Additional		Other						Treasury			Total
	Shares			Treasury			Shares			Common		Paid-in		Comprehensive			Retained			Stock,			Stockholders'
	Issued			Shares			Outstanding			Stock		Capital		Income (Loss)			Earnings			at Cost			Equity
Balance at January 1, 2020		33,475,402			(2,675,778	)		30,799,624		$	33	$	575,816	$	3,382		$	100,552		$	(116,515	)	$	563,268
Adjustment related to adopting of new accounting standards
ASU 2016-13 (See Notes 1 and 3)		—			—			—			—		—		—			(12,167	)		—			(12,167	)
Adjusted balance at January 1, 2020		33,475,402			(2,675,778	)		30,799,624			33		575,816		3,382			88,385			(116,515	)		551,101
Restricted stock awards, net of forfeitures		(27,188	)		—			(27,188	)		—		—		—			—			—			—
Share-based compensation expense		—			—			—			—		769		—			—			—			769
Restricted stock surrendered due to employee tax liability		—			(14,295	)		(14,295	)		—		—		—			—			(171	)		(171	)
Repurchase of common stock		—			(135,400	)		(135,400	)		—		—		—			—			(2,196	)		(2,196	)
Cash dividends declared (common stock, $0.24/share)		—			—			—			—		—		—			(7,380	)		—			(7,380	)
Net income		—			—			—			—		—		—			2,350			—			2,350
Change in unrealized gain on securities available for sale, net of income taxes		—			—			—			—		—		8,485			—			—			8,485
Balance at March 31, 2020		33,448,214			(2,825,473	)		30,622,741		$	33	$	576,585	$	11,867		$	83,355		$	(118,882	)	$	552,958
Balance at January 1, 2021		33,560,801			(2,842,966	)		30,717,835		$	33	$	578,360	$	3,076		$	114,621		$	(119,046	)	$	577,044
Restricted stock awards, net of forfeitures		24,380			—			24,380			—		—		—			—			—			—
Share-based compensation expense		—			—			—			—		598		—			—			—			598
Restricted stock surrendered due to employee tax liability		—			(4,682	)		(4,682	)		—		—		—			—			(95	)		(95	)
Repurchase of common stock		—			(55,000	)		(55,000	)		—		—		—			—			(946	)		(946	)
Cash dividends declared (common stock, $0.10/share)		—			—			—			—		—		—			(3,069	)		—			(3,069	)
Net income		—			—			—			—		—		—			16,659			—			16,659
Change in unrealized gain on securities available for sale, net of income taxes		—			—			—			—		—		(8,369	)		—			—			(8,369	)
Balance at March 31, 2021		33,585,181			(2,902,648	)		30,682,533		$	33	$	578,958	$	(5,293	)	$	128,211		$	(120,087	)	$	581,822

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

6

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

	Three Months Ended March 31,
	2021			2020
Cash flows from operating activities:
Net income	$	16,659		$	2,350
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,850			2,317
Share-based compensation expense		598			769
Credit loss expense		2,109			15,739
Gain on sales of securities		(99	)		—
Gain on sales of SBA loans		(4,125	)		(1,154	)
Origination of SBA loans held for sale		(146,670	)		(12,197	)
Proceeds from sales of SBA loans		126,690			19,366
Change in bank-owned life insurance		(256	)		(276	)
Change in prepaid expenses and other assets		4,945			(4,905	)
Change in income tax assets		3,554			4,098
Change in accrued expenses and other liabilities		(652	)		(1,846	)
Net cash provided by (used in) operating activities		6,602			24,262
Cash flows from investing activities:
Purchases of securities available for sale		(116,026	)		(26,423	)
Proceeds from matured, called and repayment of securities		67,729			49,987
Proceeds from sales of securities available for sale		8,035			—
Purchases of loans receivable		(298	)		—
Purchases of premises and equipment		(1,011	)		(1,244	)
Proceeds from disposition of premises and equipment		—			44
Proceeds from sales of other real estate owned ("OREO")		589			—
Change in loans receivable, excluding purchases		58,271			38,884
Net cash provided by (used in) investing activities		17,289			61,248
Cash flows from financing activities:
Change in deposits		234,815			(116,894	)
Change in overnight borrowings		—			135,000
Proceeds from borrowings		—			75,000
Cash paid for surrender of vested shares due to employee tax liability		(95	)		(171	)
Repurchase of common stock		(946	)		(2,196	)
Cash dividends paid		(3,069	)		(7,380	)
Net cash provided by (used in) financing activities		230,705			83,359
Net increase (decrease) in cash and due from banks		254,596			168,869
Cash and due from banks at beginning of year		391,849			121,678
Cash and due from banks at end of period	$	646,445		$	290,546
Supplemental disclosures of cash flow information:
Interest expense paid	$	8,267		$	16,472
Income taxes paid	$	125		$	93
Non-cash activities:
Transfer of loans receivable to other real estate owned	$	1		$	—
Income tax benefit (expense) related to items of other comprehensive income	$	3,515		$	(3,439	)
Change in right-of-use asset obtained in exchange for lease liability	$	—		$	1,287

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

7

Hanmi Financial Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended March 31, 2021 and 2020

Note 1 — Organization and Basis of Presentation

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

In management’s opinion, the accompanying unaudited consolidated financial statements of Hanmi Financial and its subsidiaries reflect all adjustments of a normal and recurring nature that are necessary for a fair presentation of the results for the interim periods ended March 31, 2021, but are not necessarily indicative of the results that will be reported for the entire year or any other interim period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. The unaudited consolidated financial statements are prepared in conformity with GAAP and in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. The interim information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report on Form 10-K”).

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

The outbreak of COVID-19 has resulted in restrictions on travel and gatherings and restricted business activities. As a result, the operations and business results of the Company could be materially adversely affected. The extent to which the COVID-19 crisis may impact business activity or financial results will depend on future developments, including new information which may emerge concerning the severity of the coronavirus and the actions required to contain the coronavirus or treat its impact, among others, which are highly uncertain and cannot be predicted. This uncertainty may impact the accuracy of our significant estimates, which includes the allowance for credit losses, the allowance for credit losses related to off-balance sheet items, and the valuation of intangible assets including deferred tax assets, goodwill, and servicing assets.

Descriptions of our significant accounting policies are included in Note 1 - Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in the 2020 Annual Report on Form 10-K.

Recently Issued Accounting Standards Not Yet Effective

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

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

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

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

8

Note 2 — Securities

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

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
	(in thousands)
March 31, 2021
U.S. Treasury securities	$	9,998	$	77	$	—		$	10,075
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		579,209		87		(7,216	)		572,080
Collateralized mortgage obligations		112,808		145		(210	)		112,743
Debt securities		85,660		31		(475	)		85,216
Total U.S. government agency and sponsored agency obligations		777,677		263		(7,901	)		770,039
Total securities available for sale	$	787,675	$	340	$	(7,901	)	$	780,114
December 31, 2020
U.S. Treasury securities	$	9,997	$	135	$	—		$	10,132
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		515,169		4,260		(188	)		519,241
Collateralized mortgage obligations		133,632		186		(217	)		133,601
Debt securities		90,660		148		(1	)		90,807
Total U.S. government agency and sponsored agency obligations		739,461		4,594		(406	)		743,649
Total securities available for sale	$	749,458	$	4,729	$	(406	)	$	753,781

The amortized cost and estimated fair value of securities as of March 31, 2021 and December 31, 2020, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities.

	March 31, 2021				December 31, 2020
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	12,963	$	13,045	$	13,305	$	13,435
Over one year through five years		90,083		89,890		139,876		140,100
Over five years through ten years		50,135		49,990		25,764		25,768
Over ten years		634,494		627,189		570,513		574,478
Total	$	787,675	$	780,114	$	749,458	$	753,781

9

The following table summarizes debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2021 and December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position:

	Holding Period
	Less than 12 Months							12 Months or More						Total
	Gross			Estimated		Number		Gross		Estimated		Number		Gross			Estimated		Number
	Unrealized			Fair		of		Unrealized		Fair		of		Unrealized			Fair		of
	Loss			Value		Securities		Loss		Value		Securities		Loss			Value		Securities
	(in thousands, except number of securities)
March 31, 2021
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities	$	(7,216	)	$	562,136		87	$	—	$	—		—	$	(7,216	)	$	562,136		87
Collateralized mortgage obligations		(210	)		78,602		18		—		—		—		(210	)		78,602		18
Debt securities		(475	)		55,525		9		—		—		—		(475	)		55,525		9
Total U.S. government agency and sponsored agency obligations		(7,901	)		696,263		114		—		—		—		(7,901	)		696,263		114
Total	$	(7,901	)	$	696,263		114	$	—	$	—		—	$	(7,901	)	$	696,263		114
December 31, 2020
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities	$	(188	)	$	76,023		10	$	—	$	—		—	$	(188	)	$	76,023		10
Collateralized mortgage obligations		(217	)		97,659		21		—		—		—		(217	)		97,659		21
Debt securities		(1	)		4,999		1		—		—		—		(1	)		4,999		1
Total U.S. government agency and sponsored agency obligations		(406	)		178,681		32		—		—		—		(406	)		178,681		32
Total	$	(406	)	$	178,681		32	$	—	$	—		—	$	(406	)	$	178,681		32

The Company evaluates its available-for-sale securities portfolio for impairment on an at least quarterly basis. This assessment took into account the credit quality of these debt securities and determined that since all were U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government, no credit impairment had occurred.

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

	Three Months Ended March 31,
	2021		2020
	(in thousands)
Gross realized gains on sales of securities	$	99	$	—
Gross realized losses on sales of securities		—		—
Net realized gains on sales of securities	$	99	$	—
Proceeds from sales of securities	$	8,035	$	—

During the three months ended March 31, 2021 and 2020, there were $99,000 and $0 in gains or losses, respectively, in earnings resulting from the sale of securities.

Securities available for sale with market values of $32.6 million and $27.3 million as of March 31, 2021 and December 31, 2020, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.

At March 31, 2021, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies in an amount greater than 10 percent of shareholders’ equity.

10

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:

	March 31, 2021			December 31, 2020
	(in thousands)
Real estate loans:
Commercial property
Retail	$	811,583		$	824,606
Hospitality		842,014			859,953
Other (1)		1,656,065			1,610,377
Total commercial property loans		3,309,662			3,294,936
Construction		62,626			58,882
Residential/consumer loans		328,228			345,831
Total real estate loans		3,700,516			3,699,649
Commercial and industrial loans		707,073			757,255
Leases receivable		409,562			423,264
Loans receivable		4,817,151			4,880,168
Allowance for credit losses		(88,392	)		(90,426	)
Loans receivable, net	$	4,728,759		$	4,789,742

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

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act allows financial institutions to assist customers in dealing with financial hardship by (a) providing federal funding so that financial institutions can originate SBA loans to borrowers at a low interest rate under the Paycheck Protection Program (“PPP”) loans with eventual debt forgiveness should the borrower continue to meet certain criteria; and (b) allowing financial institutions to temporarily modify loan terms by deferring loan payments, loan fees, etc. without considering them Troubled Debt Restructurings (“TDRs”).

At March 31, 2021, there were $256.5 million of PPP loans included in commercial and industrial loans in the table above.  In addition, at March 31, 2021, there were $116.4 million of loans modified under Section 4013 of the CARES Act.

Accrued interest on loans was $13.6 million and $15.2 million at March 31, 2021 and December 31, 2020, respectively. Accrued interest at March 31, 2021 and December 31, 2020 included unpaid deferred interest receivable for loans currently or previously modified under the CARES Act of $5.2 million and $7.5 million, net of a $1.2 million and $1.7 million valuation allowance, respectively.

At March 31, 2021 and December 31, 2020, loans of $2.34 billion and $2.17 billion, respectively, were pledged to secure advances from the FHLB.

11

Loans Held for Sale

The following is the activity for loans held for sale for the three months ended March 31, 2021 and 2020:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
March 31, 2021
Balance at beginning of period	$	8,042		$	526		$	8,568
Originations and transfers		16,283			130,387			146,670
Sales		(13,395	)		(109,169	)		(122,564	)
Principal paydowns and amortization		—			—			—
Balance at end of period	$	10,930		$	21,744		$	32,674
March 31, 2020
Balance at beginning of period	$	2,943		$	3,077		$	6,020
Originations		6,494			5,703			12,197
Sales		(9,432	)		(8,780	)		(18,212	)
Principal paydowns and amortization		(5	)		—			(5	)
Balance at end of period	$	—		$	—		$	—

Loans held for sale was comprised of $10.9 million of the guaranteed portion of SBA 7(a) loans and $21.7 million in second draw PPP loans at March 31, 2021. During the quarter ended March 31, 2021, the Company recognized $2.5 million of gains on the sale of $108.5 million second draw PPP loans.

12

Allowance for Credit Losses

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

	Real Estate			Commercial and Industrial			Leases Receivable			Total
	(in thousands)
March 31, 2021
Balance at beginning of period		51,877		$	21,410		$	17,139		$	90,426
Less loans charged off		1,509			93			1,903			3,505
Recoveries on loans receivable previously charged off		(273	)		(99	)		(135	)		(507	)
Provision for credit losses		7,121			(5,029	)		(1,128	)		964
Ending balance	$	57,762		$	16,387		$	14,243		$	88,392
Individually evaluated	$	11		$	7,584		$	4,561		$	12,156
Collectively evaluated	$	57,751		$	8,803		$	9,682		$	76,236
Loans receivable	$	3,700,516		$	707,073		$	409,562		$	4,817,151
Individually evaluated	$	39,144		$	14,297		$	10,025		$	63,466
Collectively evaluated	$	3,661,372		$	692,777		$	399,537		$	4,753,686
March 31, 2020
Balance at beginning of period	$	36,435		$	16,206		$	8,767		$	61,408
Adjustment related to adoption of ASU 2016-13		14,028			(2,497	)		5,902			17,433
Adjusted balance as of January 1, 2020		50,463			13,709			14,669			78,841
Less loans charged off		14,143			12,150			1,181			27,474
Recoveries on loans receivable previously charged off		(58	)		(84	)		(74	)		(216	)
Provision for credit losses		2,754			9,945			2,218			14,917
Ending balance	$	39,132		$	11,588		$	15,780		$	66,500
Individually evaluated	$	81		$	147		$	1,671		$	1,899
Collectively evaluated	$	39,051		$	11,441		$	14,109		$	64,601
Loans receivable	$	3,578,395		$	472,714		$	492,527		$	4,543,636
Individually evaluated	$	35,459		$	5,444		$	6,393		$	47,296
Collectively evaluated	$	3,542,936		$	467,270		$	486,134		$	4,496,340

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

	March 31, 2021							December 31, 2020
	Allowance Amount		Total Loans		Percentage of Total Loans			Allowance Amount		Total Loans		Percentage of Total Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	3,962	$	811,583		16.8	%	$	4,855	$	824,606		16.9	%
Hospitality		38,251		842,014		17.5	%		28,801		859,953		17.6	%
Other		11,121		1,656,065		34.4	%		13,991		1,610,377		32.9	%
Total commercial property loans		53,334		3,309,662		68.7	%		47,647		3,294,936		67.4	%
Construction		3,670		62,626		1.3	%		2,876		58,882		1.2	%
Residential/consumer loans		758		328,228		6.8	%		1,353		345,831		7.1	%
Total real estate loans		57,762		3,700,516		76.8	%		51,876		3,699,649		75.8	%
Commercial and industrial loans		16,387		707,073		14.7	%		21,410		757,255		15.5	%
Leases receivable		14,243		409,562		8.5	%		17,140		423,264		8.7	%
Total	$	88,392	$	4,817,151		100.0	%	$	90,426	$	4,880,168		100.0	%

13

The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of March 31, 2021 and December 31, 2020, for which repayment is expected to be obtained through the sale of the underlying collateral.

	March 31, 2021		December 31, 2020
	Amortized Cost		Amortized Cost
	(in thousands)
Real estate loans:
Commercial property
Retail	$	6,270	$	6,330
Hospitality		8,941		20,612
Other (1)		8,137		8,410
Total commercial property loans		23,348		35,352
Construction		11,046		24,854
Residential/consumer loans		2,832		2,867
Total real estate loans		37,226		63,073
Commercial and industrial loans		—		41
Total	$	37,226	$	63,114

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

Loan Quality Indicators

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

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

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

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

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

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

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

14

Loans by Vintage Year and Risk Rating

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
March 31, 2021
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	248,282	$	824,943	$	499,488	$	457,893	$	333,986	$	757,814	$	40,720	$	3,163,126
Special Mention		—		6,390		18,559		11,023		1,660		38,335		260		76,227
Classified		—		—		5,510		12,572		4,665		47,562		—		70,309
Total commercial property		248,282		831,333		523,557		481,488		340,311		843,711		40,980		3,309,662
Construction
Risk Rating
Pass / Pass Watch		11,659		27,263		—		—		—		—		—		38,922
Special Mention		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		23,704		—		23,704
Total construction		11,659		27,263		—		—		—		23,704		—		62,626
Residential/consumer loans
Risk Rating
Pass / Pass-Watch		12,640		26,795		947		33,026		117,121		121,431		7,093		319,053
Special Mention		—		—		—		930		378		5,299		—		6,607
Classified		—		—		—		—		2,245		323		—		2,568
Total residential/consumer loans		12,640		26,795		947		33,956		119,744		127,053		7,093		328,228
Total real estate loans
Risk Rating
Pass / Pass-Watch		272,581		879,001		500,435		490,919		451,107		879,245		47,813		3,521,101
Special Mention		—		6,390		18,559		11,953		2,038		43,634		260		82,834
Classified		—		—		5,510		12,572		6,910		71,589		—		96,581
Total real estate loans		272,581		885,391		524,504		515,444		460,055		994,468		48,073		3,700,516
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		75,769		327,677		54,566		50,755		16,844		12,987		114,431		653,029
Special Mention		—		3,446		4,690		4,429		75		68		515		13,223
Classified		456		—		15,272		5,070		9,247		6,587		4,189		40,821
Total commercial and industrial loans		76,225		331,123		74,528		60,254		26,166		19,642		119,135		707,073
Leases receivable:
Risk Rating
Pass / Pass-Watch		34,174		107,408		148,514		79,816		24,719		4,906		—		399,537
Special Mention		—		—		—		—		—		—		—		—
Classified		—		488		5,826		2,267		595		849		—		10,025
Total leases receivable		34,174		107,896		154,340		82,083		25,314		5,755		—		409,562
Total loans receivable:
Risk Rating
Pass / Pass-Watch		382,524		1,314,086		703,515		621,490		492,670		897,138		162,244		4,573,667
Special Mention		—		9,836		23,249		16,382		2,113		43,702		775		96,057
Classified		456		488		26,608		19,909		16,752		79,025		4,189		147,427
Total loans receivable	$	382,980	$	1,324,410	$	753,372	$	657,781	$	511,535	$	1,019,865	$	167,208	$	4,817,151

15

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2020
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	920,876	$	513,962	$	479,221	$	343,659	$	418,361	$	459,367	$	31,283	$	3,166,729
Special Mention		13,680		2,484		8,630		1,671		14,971		11,907		—		53,343
Classified		—		3,528		7,303		4,712		21,351		37,840		130		74,864
Total commercial property		934,556		519,974		495,154		350,042		454,683		509,114		31,413		3,294,936
Construction
Risk Rating
Pass / Pass-Watch		33,415		613		—		—		—		—		—		34,028
Special Mention		—		—		—		—		—		—		—		—
Classified		—		—		—		—		24,854		—		—		24,854
Total construction		33,415		613		—		—		24,854		—		—		58,882
Residential/consumer loans
Risk Rating
Pass / Pass-Watch		27,997		962		37,123		127,987		82,124		54,003		7,353		337,549
Special Mention		—		—		930		829		537		2,782		—		5,078
Classified		—		—		—		2,259		301		644		—		3,204
Total residential/consumer loans		27,997		962		38,053		131,075		82,962		57,429		7,353		345,831
Total real estate loans
Risk Rating
Pass / Pass-Watch		982,288		515,537		516,344		471,646		500,485		513,370		38,636		3,538,306
Special Mention		13,680		2,484		9,560		2,500		15,508		14,689		—		58,421
Classified		—		3,528		7,303		6,971		46,506		38,484		130		102,922
Total real estate loans		995,968		521,549		533,207		481,117		562,499		566,543		38,766		3,699,649
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		406,486		73,159		54,110		17,834		4,464		9,910		146,722		712,685
Special Mention		6,950		4,509		4,436		1,110		31		1,074		447		18,557
Classified		—		890		5,115		9,465		4,380		1,519		4,644		26,013
Total commercial and industrial loans		413,436		78,558		63,661		28,409		8,875		12,503		151,813		757,255
Leases receivable:
Risk Rating
Pass / Pass-Watch		113,712		165,242		91,408		30,405		10,096		1,167		—		412,030
Special Mention		—		—		—		—		—		—		—		—
Classified		452		5,728		3,137		876		804		237		—		11,234
Total leases receivable		114,164		170,970		94,545		31,281		10,900		1,404		—		423,264
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,502,486		753,938		661,862		519,885		515,045		524,447		185,358		4,663,021
Special Mention		20,630		6,993		13,996		3,610		15,539		15,763		447		76,978
Classified		452		10,146		15,555		17,312		51,690		40,240		4,774		140,169
Total loans receivable	$	1,523,568	$	771,077	$	691,413	$	540,807	$	582,274	$	580,450	$	190,579	$	4,880,168

⁽¹⁾ Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Certain prior period amounts have been reclassified to conform to current period presentation.

16

Loans by Vintage Year and Payment Performance

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
March 31, 2021
Real estate loans:
Commercial property
Payment performance
Performing	$	248,282	$	831,333	$	523,557	$	481,467	$	337,960	$	828,069	$	40,980	$	3,291,648
Nonperforming		—		—		—		21		2,351		15,642		—		18,014
Total commercial property		248,282		831,333		523,557		481,488		340,311		843,711		40,980		3,309,662
Construction
Payment performance
Performing		11,659		27,263		—		—		—		12,658		—		51,580
Nonperforming		—		—		—		—		—		11,046		—		11,046
Total construction		11,659		27,263		—		—		—		23,704		—		62,626
Residential/consumer loans
Payment performance
Performing		12,640		26,795		947		33,956		118,347		126,730		7,093		326,508
Nonperforming		—		—		—		—		1,397		323		—		1,720
Total residential/consumer loans		12,640		26,795		947		33,956		119,744		127,053		7,093		328,228
Total real estate loans
Payment performance
Performing		272,581		885,391		524,504		515,423		456,307		967,457		48,073		3,669,736
Nonperforming		—		—		—		21		3,748		27,011		—		30,780
Total real estate loans		272,581		885,391		524,504		515,444		460,055		994,468		48,073		3,700,516
Commercial and industrial loans:
Payment performance
Performing		76,225		331,123		73,638		56,348		16,967		19,384		119,135		692,820
Nonperforming		—		—		890		3,906		9,199		258		—		14,253
Total commercial and industrial loans		76,225		331,123		74,528		60,254		26,166		19,642		119,135		707,073
Leases receivable:
Payment performance
Performing		34,174		107,408		148,515		79,816		24,719		4,906		—		399,538
Nonperforming		—		488		5,825		2,267		595		849		—		10,024
Total leases receivable		34,174		107,896		154,340		82,083		25,314		5,755		—		409,562
Total loans receivable:
Payment performance
Performing		382,980		1,323,922		746,657		651,587		497,993		991,747		167,208		4,762,094
Nonperforming		—		488		6,715		6,194		13,542		28,118		—		55,057
Total loans receivable	$	382,980	$	1,324,410	$	753,372	$	657,781	$	511,535	$	1,019,865	$	167,208	$	4,817,151

17

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2020
Real estate loans:
Commercial property
Payment performance
Performing	$	934,556	$	519,582	$	495,132	$	347,656	$	437,230	$	499,410	$	31,283	$	3,264,849
Nonperforming		—		392		22		2,386		17,453		9,704		130		30,087
Total commercial property		934,556		519,974		495,154		350,042		454,683		509,114		31,413		3,294,936
Construction
Payment performance
Performing		33,415		613		—		—		—		—		—		34,028
Nonperforming		—		—		—		—		24,854		—		—		24,854
Total construction		33,415		613		—		—		24,854		—		—		58,882
Residential/consumer loans
Payment performance
Performing		27,997		962		38,053		129,670		82,661		56,785		7,353		343,481
Nonperforming		—		—		—		1,405		301		644		—		2,350
Total residential/consumer loans		27,997		962		38,053		131,075		82,962		57,429		7,353		345,831
Total real estate loans
Payment performance
Performing		995,968		521,157		533,185		477,326		519,891		556,195		38,636		3,642,358
Nonperforming		—		392		22		3,791		42,608		10,348		130		57,291
Total real estate loans		995,968		521,549		533,207		481,117		562,499		566,543		38,766		3,699,649
Commercial and industrial loans:
Payment performance
Performing		413,436		77,668		59,726		19,002		8,875		12,227		151,813		742,747
Nonperforming		—		890		3,935		9,407		—		276		—		14,508
Total commercial and industrial loans		413,436		78,558		63,661		28,409		8,875		12,503		151,813		757,255
Leases receivable:
Payment performance
Performing		113,712		165,242		91,408		30,405		10,096		1,167		—		412,030
Nonperforming		452		5,728		3,137		876		804		237		—		11,234
Total leases receivable		114,164		170,970		94,545		31,281		10,900		1,404		—		423,264
Total loans receivable:
Payment performance
Performing		1,523,116		764,067		684,319		526,733		538,862		569,589		190,449		4,797,135
Nonperforming		452		7,010		7,094		14,074		43,412		10,861		130		83,033
Total loans receivable	$	1,523,568	$	771,077	$	691,413	$	540,807	$	582,274	$	580,450	$	190,579	$	4,880,168

⁽²⁾ Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Certain prior period amounts have been reclassified to conform to current period presentation.

At March 31, 2021, of the $116.4 million of loans modified in accordance with the provision of the CARES Act, $47.4 million were in pass and pass-watch, $50.8 million were special mention, and $18.2 million were classified. At December 31, 2020, of the $155.6 million of loans modified in accordance with the provision of the CARES Act, $99.9 million were in pass and pass-watch, $31.3 million were special mention, and $24.4 million were classified.

18

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

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(in thousands)
March 31, 2021
Real estate loans:
Commercial property
Retail	$	1,517	$	—	$	—	$	1,517	$	810,066	$	811,583	$	—
Hospitality		—		—		5,873		5,873		836,141		842,014		—
Other		162		—		877		1,039		1,655,026		1,656,065		—
Total commercial property loans		1,679		—		6,750		8,429		3,301,233		3,309,662		—
Construction		—		—		—		—		62,626		62,626		—
Residential/consumer loans		1,548		—		562		2,110		326,118		328,228		—
Total real estate loans		3,227		—		7,312		10,539		3,689,977		3,700,516		—
Commercial and industrial loans		119		890		12,905		13,914		693,159		707,073		—
Leases receivable		3,402		2,104		3,049		8,555		401,007		409,562		—
Total loans receivable	$	6,748	$	2,994	$	23,266	$	33,008	$	4,784,143	$	4,817,151	$	—
December 31, 2020
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	824,606	$	824,606	$	—
Hospitality		—		—		11,076		11,076		848,877		859,953		—
Other		—		—		731		731		1,609,646		1,610,377		—
Total commercial property loans		—		—		11,807		11,807		3,283,129		3,294,936		—
Construction		—		12,807		—		12,807		46,075		58,882		—
Residential/consumer loans		4,693		461		564		5,718		340,113		345,831		—
Total real estate loans		4,693		13,268		12,371		30,332		3,669,317		3,699,649		—
Commercial and industrial loans		282		27		12,487		12,796		744,459		757,255		—
Leases receivable		4,051		1,786		4,675		10,512		412,752		423,264		—
Total loans receivable	$	9,026	$	15,081	$	29,533	$	53,640	$	4,826,528	$	4,880,168	$	—

There were no loans that were 90 days or more past due and accruing interest as of March 31, 2021 and December 31, 2020, respectively. In addition, $31.8 million and $53.4 million of loans past due less than 90 days were classified as nonaccrual at March 31, 2021 and December 31, 2020, respectively.

At March 31, 2021 and December 31, 2020, all $116.4 million and $155.6 million, respectively, of currently modified loans under the CARES Act were classified as current. For loans previously modified under the CARES Act, $5.2 million were 30-59 days past due, $1.7 million were 60-89 days past due, and $8.0 million were 90 days or more past due at March 31, 2021, and $4.9 million were 30-59 days past due, $1.7 million were 60-89 days past due, and $13.9 million were 90 days or more past due at December 31, 2020.

Individually Evaluated Loans

The Company reviews all loans on an individual basis when they do not share similar risk characteristics with loan pools.

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The following is a summary of interest foregone on nonaccrual loans for the periods indicated:

	Three Months Ended March 31,
	2021			2020
	(in thousands)
Interest income that would have been recognized had individually evaluated loans performed in accordance with their original terms	$	2,307		$	1,595
Less: Interest income recognized on individually evaluated loans		(177	)		(122	)
Interest foregone on individually evaluated loans	$	2,130		$	1,473

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

Nonaccrual Loans and Nonperforming Assets

The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of March 31, 2021 and December 31, 2020.

	March 31, 2021
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	6,270	$	—	$	—	$	6,270
Hospitality		8,941		—		—		8,941
Other		2,320		483		—		2,803
Total commercial property loans		17,531		483		—		18,014
Construction		11,046		—		—		11,046
Residential/consumer loans		1,720		—		—		1,720
Total real estate loans		30,297		483		—		30,780
Commercial and industrial loans		196		14,058		—		14,254
Leases receivable		2,742		7,282		—		10,024
Total	$	33,235	$	21,823	$	—	$	55,058
	December 31, 2020
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	6,331	$	—	$	—	$	6,331
Hospitality		20,612		—		—		20,612
Other		2,236		909		—		3,145
Total commercial property loans		29,179		909		—		30,088
Construction		24,854		—		—		24,854
Residential/consumer loans		2,350		—		—		2,350
Total real estate loans		56,383		909		—		57,292
Commercial and industrial loans		58		14,449		—		14,507
Leases receivable		2,318		8,915		—		11,233
Total	$	58,759	$	24,273	$	—	$	83,032

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

	March 31, 2021		December 31, 2020
	(in thousands)
Nonaccrual loans	$	55,058	$	83,032
Loans receivable 90 days or more past due and still accruing		—		—
Total nonperforming loans receivable		55,058		83,032
Other real estate owned ("OREO")		1,545		2,360
Total nonperforming assets	$	56,603	$	85,392

OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020.

Troubled Debt Restructurings

As of March 31, 2021 and December 31, 2020, total TDRs were $23.6 million and $25.0 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise been considered, to the borrower for economic or legal reasons related to the borrower’s financial difficulties. In addition, the concession granted must result in a reduction in the borrower’s payment for a period of three months or more in order to be classified as a TDR.

The following table details TDRs as of March 31, 2021 and December 31, 2020:

	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)
March 31, 2021
Real estate loans	$	446	$	3,130	$	11,474	$	—	$	15,050	$	1,103	$	—	$	—	$	7,260	$	8,363
Commercial and industrial loans		—		139		—		—		139		—		—		3		41		44
Total	$	446	$	3,269	$	11,474	$	—	$	15,189	$	1,103	$	—	$	3	$	7,301	$	8,407
December 31, 2020
Real estate loans	$	1,095	$	3,334	$	12,492	$	—	$	16,921	$	513	$	—	$	67	$	7,290	$	7,870
Commercial and industrial loans		—		144		—		—		144		—		—		4		56		60
Total	$	1,095	$	3,478	$	12,492	$	—	$	17,065	$	513	$	—	$	71	$	7,346	$	7,930

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

	Three Months ended						Twelve Months ended
	March 31, 2021						December 31, 2020
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(in thousands except for number of loans)
Real estate loans		—	$	—				5	$	4,479	$	3,676
Commercial and industrial loans		—		—		—		—		—		—
Total		—	$	—	$	—		5	$	4,479	$	3,676

All TDRs are individually analyzed using one of three criteria: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. At March 31, 2021 and December 31, 2020, TDRs were subjected to specific impairment analysis. We determined impairment allowances of $7,000 and $16,000, respectively, related to these loans and such allowances were included in the allowance for credit losses.

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. No loans defaulted during the three months ended March 31, 2021 following modification. During the year ended December 31, 2020, one loan for $398,000 defaulted within the twelve-month period following modification. The allowance for credit losses resulting from this defaulted loan was $3,000 for the year ended December 31, 2020.

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Note 4 — Servicing Assets

The changes in servicing assets for the three months ended March 31, 2021 and 2020 were as follows:

	Three Months Ended March 31,
	2021			2020
	(in thousands)
Servicing assets:
Balance at beginning of period	$	6,212		$	6,956
Addition related to sale of SBA loans		450			354
Amortization		(512	)		(583	)
Balance at end of period	$	6,150		$	6,727

At March 31, 2021 and December 31, 2020, we serviced loans sold to unaffiliated parties in the amounts of $432.4 million and $429.4 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 serviced were SBA loans.

The Company recorded servicing fee income of $1.3 million and $1.0 million for the three months ended March 31, 2021 and March 31, 2020, respectively. Servicing fee income, net of the amortization of servicing assets, is included in other operating income in the consolidated statements of income. Amortization expense was $512,000 and $583,000 for the three months ended March 31, 2021 and March 31, 2020, respectively.

The fair value of servicing rights was $7.4 million at March 31, 2021. Fair value at March 31, 2021 was determined using discount rates ranging from 7.3 percent to 10.3 percent and prepayment speeds ranging from 11.5 percent to 18.8 percent, depending on the stratification of the specific right. The fair value of servicing rights was $6.9 million at December 31, 2020. Fair value at December 31, 2020 was determined using discount rates ranging from 9.3 percent to 12.2 percent and prepayment speeds ranging from 11.8 percent to 19.1 percent, depending on the stratification of the specific right.

Note 5 — Income Taxes

The Company’s income tax expense was $7.5 million and $1.0 million representing an effective income tax rate of 31.1 percent and 30.7 percent for the three months ended March 31, 2021 and 2020, respectively.

Management concluded that as of March 31, 2021 and December 31, 2020, a valuation allowance of $4.4 million was appropriate against certain state net operating loss carry forwards and certain tax credits. For all other deferred tax assets, management believes it was more likely than not that these deferred tax assets will be realized principally through future taxable income and reversal of existing taxable temporary differences. The net deferred tax asset was $42.7 million and $41.4 million as of March 31, 2021 and December 31, 2020, respectively. The net current tax liability was $3.6 million as of March 31, 2021 and the net current tax asset was $1.0 million as of December 31, 2020.

As of March 31, 2021 the Company is subject to examination by various taxing authorities for its federal tax returns for the years ending December 31, 2017 through 2019 and state tax returns for the years ending December 31, 2016 through 2019. During the quarter ended March 31, 2021, there was no material change to the Company’s uncertain tax positions. The Company does not expect its unrecognized tax positions to change significantly over the next twelve months.

The CARES Act includes provisions for tax payment relief, significant business incentives, and certain corrections to the 2017 Tax Cuts and Jobs Act, or the Tax Act. The tax relief measures for entities includes a five-year net operating loss carry back, increases in interest expense deduction limits, accelerates alternative minimum tax credit refunds, provides payroll tax relief, and provides a technical correction to allow accelerated deductions for qualified improvement property. ASC Topic 740, Income Taxes, requires the effect of changes in tax law be recognized in the period in which new legislation is enacted. The enactment of the CARES Act was not material to the Company’s income taxes for the three months ended March 31, 2021, and is not expected to have a material impact on its financial statements for the full year ending December 31, 2021.

On December 27, 2020, the U.S. enacted the Consolidated Appropriations Act, 2021 (the “Act”) that provides additional tax relief to individuals and businesses affected by the coronavirus pandemic. We considered the provisions of the Act and determined they do not have a material impact to our overall income taxes.

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Note 6 — Goodwill and other Intangibles

The third-party originators intangible of $483,000 and goodwill of $11.0 million were recorded as a result of the acquisition of a leasing portfolio in 2016. The core deposit intangible of $2.2 million was recognized for the core deposits acquired in a 2014 acquisition. The Company’s intangible assets were as follows for the periods indicated:

		March 31, 2021							December 31, 2020
	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Core deposit intangible	10 years	$	2,213	$	(1,784	)	$	429	$	2,213	$	(1,746	)	$	467
Third-party originators intangible	7 years		483		(385	)		98		483		(369	)		114
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,727	$	(2,169	)	$	11,558	$	13,727	$	(2,115	)	$	11,612

Intangible assets amortization expense for the three-month periods ended March 31, 2021 and 2020 was $54,000 and $65,000, respectively. The Company performed an impairment analysis on its goodwill and other intangible assets as of December 31, 2020 and determined there was no impairment. No triggering event has occurred subsequent to December 31, 2020 that would require a reassessment of goodwill and other intangible assets.

Note 7 — Deposits

Time deposits at or exceeding the FDIC insurance limit of $250,000 March 31, 2021 and December 31, 2020 were $300.9 million and $311.8 million, respectively.

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

At March 31, 2021	Time Deposits of $250,000 or More		Other Time Deposits		Total
	(in thousands)
2021	$	244,254	$	619,836	$	864,090
2022		55,539		225,949		281,488
2023		806		29,134		29,940
2024		—		15,790		15,790
2025 and thereafter		264		2,440		2,704
Total	$	300,863	$	893,149	$	1,194,012
At December 31, 2020
2021	$	296,455	$	825,677	$	1,122,132
2022		14,315		115,832		130,148
2023		804		22,881		23,685
2024		—		5,382		5,382
2025 and thereafter		264		2,089		2,352
Total	$	311,838	$	971,861	$	1,283,699

Accrued interest payable on deposits was $2.4 million and $4.6 million at March 31, 2021 and December 31, 2020, respectively. Total deposits reclassified to loans due to overdrafts at March 31, 2021 and December 31, 2020 were $320,000 and $241,000, respectively.

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Note 8 — Borrowings and Subordinated Debentures

At March 31, 2021, the Bank had no overnight advances and $150.0 million in term advances outstanding with the FHLB with a weighted average interest rate of 1.20 percent. At December 31, 2020, the Bank had no overnight advances and $150.0 million of term advances with the FHLB with a weighted average rate of 1.40 percent. The Bank had no outstanding borrowings with the Federal Reserve Bank (“FRB”) under the Paycheck Protection Program Lending Facility (“PPPLF”) as of March 31, 2021 or December 31, 2020. Interest expense on borrowings for the three months ended March 31, 2021 and 2020 was $478,000 and $496,000, respectively.

	March 31, 2021					December 31, 2020
	Outstanding Balance		Weighted Average Rate			Outstanding Balance		Weighted Average Rate
	(dollars in thousands)
Overnight advances	$	—		0.00	%	$	—		0.00	%
Advances due within 12 months		50,000		1.59	%		50,000		1.61	%
Advances due over 12 months through 24 months		50,000		1.63	%		50,000		1.62	%
Advances due over 24 months through 36 months		50,000		0.37	%		50,000		0.97	%
Outstanding advances	$	150,000		1.20	%	$	150,000		1.40	%

The following is financial data pertaining to FHLB advances:

	March 31, 2021			December 31, 2020
	(dollars in thousands)
Weighted-average interest rate at end of period		1.20	%		1.40	%
Weighted-average interest rate during the period		1.29	%		1.42	%
Average balance of FHLB advances	$	150,000		$	156,601
Maximum amount outstanding at any month-end	$	150,000		$	300,000

The Bank maintains a secured credit facility with the FHLB, allowing the Bank to borrow on an overnight and term basis. The Bank had $2.34 billion and $2.17 billion of loans pledged as collateral with the FHLB as of March 31, 2021 and December 31, 2020, respectively. Remaining available borrowing capacity was $1.39 billion, subject to the FHLB statutory lending limit of $1.57 billion, and $1.44 billion at March 31, 2021 and December 31, 2020, respectively.

The Bank also had securities with market values of $32.6 million and $27.3 million at March 31, 2021 and December 31, 2020, respectively, pledged with the FRB, which provided $31.1 million and $26.3 million in available borrowing capacity through the Fed Discount Window as of March 31, 2021 and December 31, 2020, respectively.

The Company issued Fixed-to-Floating Subordinated Notes (“Notes”) of $100.0 million on March 21, 2017, with a final maturity on March 30, 2027. The Notes have an initial fixed interest rate of 5.45 percent per annum, payable semiannually on March 30 and September 30 of each year. From and including March 30, 2022 and thereafter, the Notes bear interest at a floating rate equal to the then current three-month LIBOR, as calculated on each applicable date of determination, plus 3.315 percent payable quarterly. If the then current three-month LIBOR is less than zero, three-month LIBOR will be deemed to be zero. Debt issuance cost was $2.3 million, which is being amortized through the Note’s maturity date. At March 31, 2021 and December 31, 2020, the balance of Notes included in the Company’s Consolidated Balance Sheet, net of debt issuance cost, was $98.6 million and $98.5 million, respectively. The amortization of debt issuance cost was $53,000 and $50,000 for the three months ended March 31, 2021 and 2020, respectively.

The Company assumed Junior Subordinated Deferrable Interest Debentures (“Subordinated Debentures”) as a result of an acquisition in 2014 with an unpaid principal balance of $26.8 million and an estimated fair value of $18.5 million. The $8.3 million discount is being amortized to interest expense through the debentures’ maturity date of March 15, 2036. A trust was formed in 2005 which issued $26.0 million of Trust Preferred Securities (“TPS”) at a 6.26 percent fixed rate for the first five years and a variable rate at the three-month LIBOR plus 140 basis points thereafter and invested the proceeds in the Subordinated Debentures. The Company may redeem the Subordinated Debentures at an earlier date if certain conditions are met. The TPS will be subject to mandatory redemption if the Subordinated Debentures are repaid by the Company. Interest is payable quarterly, and the Company has the option to defer interest payments on the Subordinated Debentures from time to time for a period not to exceed five consecutive years. At March 31, 2021 and December 31, 2020, the balance of Subordinated Debentures included in the Company’s Consolidated Balance Sheets, net of discount of $6.3 million and $6.4 million, was $20.5 million and $20.4 million, respectively. The amortization of discount was $99,000 and $96,000 for the three months ended March 31, 2021 and 2020, respectively.

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Note 9 — Earnings Per Share

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

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

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

	Three Months Ended March 31,
	2021		2020
Basic EPS
Net income	$	16,659	$	2,350
Less: income allocated to unvested restricted stock		100		18
Income allocated to common shares	$	16,559	$	2,332
Weighted-average shares for basic EPS		30,461,681		30,469,022
Basic EPS (1)	$	0.54	$	0.08
Effect of dilutive stock options and unvested performance restricted stock		12,289		3,877
Diluted EPS
Income allocated to common shares	$	16,559	$	2,332
Weighted-average shares for diluted EPS		30,473,970		30,472,899
Diluted EPS (1)	$	0.54	$	0.08

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

There were no anti-dilutive stock options outstanding for the three months ended March 31, 2021 or 2020, respectively.

During the three months ended March 31, 2021, the Company issued an additional 42,626 performance stock units to executive officers from the 2013 Equity Compensation plan fair valued at $784,000 on the grant date of March 24, 2021. These units have a three-year cliff vesting period and include dividend equivalent rights. Total performance stock units outstanding as of March 31, 2021 was 66,563 with an aggregate grant fair value of $1.0 million. As of March 31, 2020, there were no performance stock units outstanding.

Note 10 — Regulatory Matters

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

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

At March 31, 2021, the Bank’s capital ratios exceeded the minimum requirements for the Bank to be considered “well capitalized” and the Company exceeded all of its applicable minimum regulatory capital ratio requirements.

25

A capital conservation buffer of 2.5 percent became effective on January 1, 2019, and must be met to avoid limitations on the ability of the Bank to pay dividends, repurchase shares or pay discretionary bonuses. The Bank's capital conservation buffer was 7.26 percent and 6.86 percent and the Company's capital conservation buffer was 6.26 percent and 5.93 percent as of March 31, 2021 and December 31, 2020, respectively.

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

The capital ratios of Hanmi Financial and the Bank as of March 31, 2021 and December 31, 2020 were as follows:

						Minimum					Minimum to Be
						Regulatory					Categorized as
	Actual					Requirement					“Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(in thousands)
March 31, 2021
Total capital (to risk-weighted assets):
Hanmi Financial	$	755,929	15.54%			$	389,082		8.00	%	N/A		N/A
Hanmi Bank	$	743,137		15.26	%	$	389,579		8.00	%	$	486,974		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	596,129	12.26%			$	291,812		6.00	%	N/A		N/A
Hanmi Bank	$	682,137	14.01%			$	292,185		6.00	%	$	389,579		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	575,601	11.84%			$	218,859		4.50	%	N/A		N/A
Hanmi Bank	$	682,137	14.01%			$	219,138		4.50	%	$	316,533		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	596,129	9.61%			$	248,215		4.00	%	N/A		N/A
Hanmi Bank	$	682,137	10.99%			$	248,219		4.00	%	$	310,274		5.00	%
December 31, 2020
Total capital (to risk-weighted assets):
Hanmi Financial	$	743,091		15.21	%	$	390,884		8.00	%	N/A		N/A
Hanmi Bank	$	726,532		14.86	%	$	391,114		8.00	%	$	488,893		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	583,076		11.93	%	$	293,163		6.00	%	N/A		N/A
Hanmi Bank	$	665,058		13.60	%	$	293,336		6.00	%	$	391,114		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	562,647		11.52	%	$	219,872		4.50	%	N/A		N/A
Hanmi Bank	$	665,058		13.60	%	$	220,002		4.50	%	$	317,780		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	583,076		9.49	%	$	245,882		4.00	%	N/A		N/A
Hanmi Bank	$	665,059		10.83	%	$	245,736		4.00	%	$	307,170		5.00	%

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Note 11 — Fair Value Measurements

Fair Value Measurements

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

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

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

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

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

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

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

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

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

Loans held for sale - Loans held for sale includes the guaranteed portion of SBA 7(a) loans and second draw PPP loans carried at the lower of cost or fair value. Management obtains quotes, bids or pricing indication sheets on all or part of the loans directly from the purchasing financial institutions. Premiums received or to be received on the quotes, bids or pricing indication

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sheets are indicative of the fact that cost is lower than fair value. At March 31, 2021 and December 31, 2020, the entire balance of loans held for sale was recorded at its cost. We record loans held for sale on a nonrecurring basis with Level 2 inputs.

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

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

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

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Assets and Liabilities Measured at Fair Value on a Recurring Basis

As of March 31, 2021 and December 31, 2020, assets and liabilities measured at fair value on a recurring basis are as follows:

	Level 1		Level 2		Level 3
			Significant
			Observable
	Quoted Prices in		Inputs with No
	Active Markets		Active Market		Significant
	for Identical		with Identical		Unobservable
	Assets		Characteristics		Inputs		Total Fair Value
	(in thousands)
March 31, 2021
Assets:
Securities available for sale:
U.S. Treasury securities	$	10,075	$	—	$	—	$	10,075
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		572,080		—		572,080
Collateralized mortgage obligations		—		112,743		—		112,743
Debt securities		—		85,216		—		85,216
Total U.S. government agency and sponsored agency obligations		—		770,039		—		770,039
Total securities available for sale	$	10,075	$	770,039	$	—	$	780,114
Derivative financial instruments	$	—	$	1,354	$	—	$	1,354
Liabilities:
Derivative financial instruments	$	—	$	1,265	$	—	$	1,265
December 31, 2020
Assets:
Securities available for sale:
U.S. Treasury securities	$	10,132	$	—	$	—	$	10,132
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		519,241		—		519,241
Collateralized mortgage obligations		—		133,601		—		133,601
Debt securities		—		90,807		—		90,807
Total U.S. government agency and sponsored agency obligations		—		743,649		—		743,649
Total securities available for sale	$	10,132	$	743,649	$	—	$	753,781
Derivative financial instruments	$	—	$	1,088	$	—	$	1,088
Liabilities:
Derivative financial instruments	$	—	$	1,149	$	—	$	1,149

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

As of March 31, 2021 and December 31, 2020, assets and liabilities measured at fair value on a non-recurring basis are as follows:

			Level 1		Level 2		Level 3
					Significant
					Observable
			Quoted Prices in		Inputs With No
			Active Markets		Active Market		Significant
			for Identical		With Identical		Unobservable
	Total		Assets		Characteristics		Inputs
	(in thousands)
March 31, 2021
Assets:
Collateral dependent loans (1)	$	37,226	$	—	$	—	$	37,226
Other real estate owned		1,545		—		—		1,545
Repossessed personal property		681		—		—		681
December 31, 2020
Assets:
Collateral dependent loans (2)	$	63,114	$	—	$	—	$	63,114
Other real estate owned		2,360		—		—		2,360
Repossessed personal property		857		—		—		857

⁽¹⁾ Consisted of real estate loans of $37.2 million.

(2) Consisted of real estate loans of $63.1 million and commercial and industrial loans of $41,000.

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The following table represents quantitative information about Level 3 fair value comments for assets measured at fair value on a non-recurring basis at March 31, 2021 and December 31, 2020:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
March 31, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	6,270	Market approach	Market data comparison	(45)% to 35% / (22)%
Hospitality		8,941	Market approach	Market data comparison	(2)
Other		8,137	Market approach	Market data comparison	(66)% to 21% / (54)% (1)
Construction		11,046	Market approach	Market data comparison	(20)% to 10% / (10)%
Residential/consumer loans		2,832	Market approach	Market data comparison	(20)% to 9% / (15)% (1)
Total real estate loans		37,226
Total	$	37,226
Other real estate owned	$	1,545	Market approach	Market data comparison	(53)% to 15% / (23)%
Repossessed personal property		681	Market approach	Market data comparison	(3)
December 31, 2020
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	6,330	Market approach	Market data comparison	(45)% to 35% / 14%
Hospitality		20,612	Market approach	Market data comparison	(2)
Other		8,410	Market approach	Market data comparison	(55)% to 34% / 15% (1)
Construction		24,854	Market approach	Market data comparison	(20)% to 12% / (8)%
Residential/consumer loans		2,867	Market approach	Market data comparison	(13)% to 15% / 6% (1)
Total real estate loans		63,073
Commercial and industrial loans:
Commercial lines of credit		41	Market approach	Market data comparison	(9)% to 15% / 6% (1)
Total	$	63,114
Other real estate owned	$	2,360	Market approach	Market data comparison	(35)% to 15% / (14)%
Repossessed personal property		857	Market approach	Market data comparison	(3)

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

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⁽²⁾ No discount weighted average range available given primary valuation methodology is via discounted cash flow analysis (DCF) for going concern properties.

⁽³⁾ The equipment is usually too low in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values.

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

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

Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825), among other provisions, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Other than certain financial instruments for which we have concluded that the carrying amounts approximate fair value, the fair value estimates shown below are based on an exit price notion as of March 31, 2021, as required by ASU 2016-01. The financial instruments for which we have concluded that the carrying amounts approximate fair value include, cash and due from banks, accrued interest receivable and payable, and noninterest-bearing deposits. The fair values of off-balance sheet items 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.

The estimated fair values of financial instruments were as follows:

	March 31, 2021
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	646,445	$	646,445	$	—	$	—
Securities available for sale		780,114		10,075		770,039		—
Loans held for sale		32,674		—		34,198		—
Loans receivable, net of allowance for credit losses		4,728,759		—		—		4,700,311
Accrued interest receivable		14,806		14,806		—		—
Financial liabilities:
Noninterest-bearing deposits		2,174,624		—		2,174,624		—
Interest-bearing deposits		3,335,199		—		—		3,335,266
Borrowings and subordinated debentures		269,124		—		151,158		115,067
Accrued interest payable		2,352		2,352		—		—

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	December 31, 2020
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	391,849	$	391,849	$	—	$	—
Securities available for sale		753,781		10,132		743,649		—
Loans held for sale		8,568		—		9,270		—
Loans receivable, net of allowance for credit losses		4,789,742		—		—		4,755,302
Accrued interest receivable		16,363		16,363		—		—
Financial liabilities:
Noninterest-bearing deposits		1,898,766		—		1,898,766		—
Interest-bearing deposits		3,376,242		—		—		3,380,179
Borrowings and subordinated debentures		268,972		—		151,714		118,809
Accrued interest payable		4,564		4,564		—		—

Note 12 — Off-Balance Sheet Commitments

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

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

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

	March 31,		December 31,
	2021		2020
	(in thousands)
Commitments to extend credit	$	463,841	$	453,900
Standby letters of credit		48,922		47,169
Commercial letters of credit		68,098		54,547
Total undisbursed loan commitments	$	580,861	$	555,616

The allowance for credit losses related to off-balance sheet items is maintained at a level believed to be sufficient to absorb current expected lifetime losses related to these unfunded credit facilities. The determination of the allowance adequacy 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.

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

	Three Months Ended March 31,
	2021			2020
	(in thousands)
Balance at beginning of period	$	2,792		$	2,397
Adjustment related to adoption of ASU 2016-13		—			(335	)
Adjusted balance		2,792			2,062
Provision expense (income) for credit losses		(450	)		823
Balance at end of period	$	2,342		$	2,885

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Note 13 — Leases

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

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

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

As of March 31, 2021, the outstanding balances for our right-of-use asset and lease liability were $49.1 million and $52.0 million, respectively. The outstanding balances of the right-of-use asset and lease liability were $52.2 million and $54.0 million, respectively, as of December 31, 2020.

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

At March 31, 2021, future minimum rental commitments under these non-cancelable operating leases, with initial or remaining terms of one year or more, were as follows:

	Amount
	(in thousands)
2021	$	7,424
2022		7,196
2023		6,881
2024		6,415
2025		5,889
Thereafter		24,057
Remaining lease commitments		57,862
Interest		(5,854	)
Present value of lease liability	$	52,008

Weighted average remaining lease terms for the Company's operating leases were 8.57 years and 8.75 years as of March 31, 2021 and December 31, 2020, respectively. Weighted average discount rates used for the Company's operating leases were 2.42 percent and 2.43 percent, respectively, as of March 31, 2021 and December 31, 2020. Net lease expense recognized for the three months ended March 31, 2021 and 2020 was $2.1 million and $2.0 million, respectively. This included operating lease costs of $2.0 million and sublease income of $33,000 for the three months ended March 31, 2021 and 2020.

Cash paid and included in cash flows from operating activities for amounts used in the measurement of the lease liability of the Company's operating leases was $2.0 million for the three months ended March 31, 2021 and 2020.

Note 14 — Liquidity

Hanmi Financial

As of March 31, 2021 and December 31, 2020, Hanmi Financial had $11.6 million and $17.3 million, respectively, in cash on deposit with its bank subsidiary. Management believes that Hanmi Financial, on a stand-alone basis, had adequate liquid assets to meet its current debt obligations.

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Hanmi Bank

The principal objective of our liquidity management program is to maintain the Bank’s ability to meet the day-to-day cash flow requirements of our customers who wish either to withdraw funds or to draw upon credit facilities to meet their cash needs. Management believes that the Bank, on a stand-alone basis, has adequate liquid assets to meet its current obligations. The Bank’s primary funding source will continue to be deposits originating from its branch platform. The Bank’s wholesale funds historically consisted of FHLB advances and brokered deposits. As of March 31, 2021 and December 31, 2020, the Bank had $150.0 million of FHLB advances and $175.3 million and $193.7 million, respectively, of brokered deposits.

We monitor the sources and uses of funds on a regular basis to maintain an acceptable liquidity position. The Bank’s primary source of borrowings is the FHLB, from which the Bank is eligible to borrow up to 30.0 percent of its assets. As of March 31, 2021, the total borrowing capacity available based on pledged collateral and the remaining available borrowing capacity were $1.68 billion and $1.39 billion, respectively, compared to $1.73 billion and $1.44 billion, respectively, as of December 31, 2020.

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

As a means of augmenting its liquidity, the Bank had an available borrowing source of $31.1 million from the Federal Reserve Discount Window, to which the Bank pledged securities with a carrying value of $32.6 million, and had no borrowings as of March 31, 2021. The Bank also maintains a line of credit for repurchase agreements up to $100.0 million. The Bank also had three unsecured federal funds lines of credit totaling $115.0 million with no outstanding balances as of March 31, 2021.

Note 15 — Derivatives and Hedging Activities

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

The table below presents the fair value of the Company’s derivative financial instruments as well as their location on the Balance Sheet as of March 31, 2021 and December 31, 2020.

As of March 31, 2021	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	66,759	Other Assets	$	1,354	$	66,759	Other Liabilities	$	1,265
Total derivatives not designated as hedging instruments				$	1,354				$	1,265
As of December 31, 2020	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	66,904	Other Assets	$	1,088	$	66,904	Other Liabilities	$	1,149
Total derivatives not designated as hedging instruments				$	1,088				$	1,149

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The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement as of March 31, 2021. There were no such instruments outstanding as of March 31, 2020.

Derivatives Not Designated as Hedging Instruments under Subtopic 815-20	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		Quarter Ended March 31, 2021
		(in thousands)
Interest rate products	Other income	$	150
Total		$	150

No fee income was recognized from the Company's derivative financial instruments for the three months ended March 31, 2021 or 2020.

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The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2021 and December 31, 2020. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the Consolidated Balance Sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the Consolidated Balance Sheets.

Offsetting of Derivative Assets
As of March 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
	(in thousands)
Derivatives	$	1,354	$	—	$	1,354	$	1,265	$	89	$	—
Offsetting of Derivative Liabilities
As of March 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
	(in thousands)
Derivatives	$	1,265	$	—	$	1,265	$	1,265	$	—	$	—
Offsetting of Derivative Assets
As of December 31, 2020
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
Derivatives	$	1,088	$	—	$	1,088	$	1,088	$	—	$	1,088
Offsetting of Derivative Liabilities
As of December 31, 2020
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
Derivatives	$	1,149	$	—	$	1,149	$	—	$	1,150	$	(1	)

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

As of March 31, 2021 and December 31, 2020, the fair value of derivatives in a net liability position for counterparty transactions, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $0 and $1.1 million, respectively. As of March 31, 2021, the Company had received $1.0 million of collateral from its counterparties related to these agreements and is adequately collateralized since its net asset position was $89,000 ($1.4 million fair value of assets less $1.3 million fair value of liabilities) as of March 31, 2021. As of December 31, 2020, the Company had posted $1.2 million of collateral related to these agreements and was essentially over-collateralized since its net liability position was $61,000 ($1.1 million fair value of assets less $1.1 million fair value of liabilities). If the Company had breached any of the provisions described above at March 31, 2021 or December 31, 2020, it could have been required to settle its obligations under the agreements at their termination value of $0 and $1.1 million, respectively.

Note 16 — Subsequent Events

At the date of issuance of this report, no subsequent events occurred that required disclosure.

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

The following is management’s discussion and analysis of our results of operations and financial condition as of and for the three months ended March 31, 2021. This analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report on Form 10-K”) and with the unaudited consolidated financial statements and notes thereto set forth in this Quarterly Report on Form 10-Q for the period ended March 31, 2021 (this “Report”).

Forward-Looking Statements

Some of the statements contained in this Report are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements in this Report other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs, plans and objectives of management for future operations, and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, strategies, outlook, needs, plans, objectives or achievements to differ from those expressed or implied by the forward-looking statement. These factors include the following: failure to maintain adequate levels of capital and liquidity to support our operations; the effect of potential future supervisory action against us or Hanmi Bank; general economic and business conditions internationally, nationally and in those areas in which we operate; volatility and deterioration in the credit and equity markets; changes in consumer spending, borrowing and savings habits; availability of capital from private and government sources; demographic changes; competition for loans and deposits and failure to attract or retain loans and deposits; fluctuations in interest rates and a decline in the level of our interest rate spread; risks of natural disasters; a failure in or breach of our operational or security systems or infrastructure, including cyber-attacks; the failure to maintain current technologies; inability to successfully implement future information technology enhancements; difficult business and economic conditions that can adversely affect our industry and business, including competition, fraudulent activity and negative publicity; risks associated with Small Business Administration loans; failure to attract or retain key employees; our ability to access cost-effective funding; fluctuations in real estate values; changes in accounting policies and practices; the imposition of tariffs or other domestic or international governmental policies impacting the value of the products of our borrowers; changes in governmental regulation, including, but not limited to, any increase in Federal Deposit Insurance Corporation insurance premiums; the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests; ability to identify a suitable strategic partner or to consummate a strategic transaction; adequacy of our allowance for credit losses; credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to control expenses; changes in securities markets; and risks as it relates to cyber security against our information technology infrastructure and those of our third party providers and vendors.

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Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and whether the gradual reopening of businesses will result in a meaningful increase in economic activity. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause credit loss expense to increase; our allowance for credit losses may have to be increased if borrowers experience financial difficulties beyond forbearance periods, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; as the result of the decline in the Federal Reserve Board’s target federal funds rate, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income; a material decrease in net income or a net loss over several quarters could result in a decrease in the rate of our quarterly cash dividend; our cyber security risks are increased as the result of an increase in the number of employees working remotely; we rely on third party vendors for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have an adverse effect on us; Federal Deposit Insurance Corporation premiums may increase if the agency experiences additional resolution costs; potential goodwill impairment charges could result if acquired assets and operations are adversely affected and remain at reduced levels; due to recent legislation and government action limiting foreclosure of real property and reduced governmental capacity to effect business transactions and property transfers, we may have more difficulty taking possession of collateral supporting our loans, which may negatively impact our ability to minimize our losses, which could adversely impact our financial results; and we face litigation, regulatory enforcement and reputation risk as a result of our participation in the Paycheck Protection Program (“PPP”) and the risk that the Small Business Administration may not fund some or all PPP loan guaranties.  Moreover, our future success and profitability substantially depends on the management skills of our executive officers and directors, many of whom have held officer and director positions with us for many years. The unanticipated loss or unavailability of key employees due to the outbreak could harm our ability to operate our business or execute our business strategy. We may not be successful in finding and integrating suitable successors in the event of key employee loss or unavailability.

For additional information concerning risks we face, see “Part II, Item 1A. Risk Factors” in this Report and “Item 1A. Risk Factors” in Part I of the 2020 Annual Report on Form 10-K. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

COVID-19

The COVID-19 pandemic has caused significant economic dislocation in the United States as many state and local governments placed restrictions on travel, gatherings and business activities.  Various state governments and federal agencies have required lenders to provide forbearance and other relief to borrowers (e.g., waiving late payment and other fees).  The federal banking agencies have encouraged financial institutions to prudently work with affected borrowers and passed legislation that provided relief from reporting loan classifications due to modifications related to the COVID-19 outbreak.  Certain industries have been particularly hard-hit, including the travel and hospitality industry, the restaurant industry and the retail industry.  Finally, the spread of the coronavirus has caused us to modify our business practices, including employee travel, employee work locations, and cancellation of physical participation in meetings, events and conferences. We have many employees working remotely and we may take further actions as may be required by government authorities or that we determine are in the best interests of our employees, customers and business partners.

Critical Accounting Policies

We have established various accounting policies that govern the application of GAAP in the preparation of our financial statements. Our significant accounting policies are described in the Notes to consolidated financial statements in our 2020 Annual Report on Form 10-K. We had no significant changes in our accounting policies since the filing of our 2020 Annual Report on Form 10-K.

Certain accounting policies require us to make significant estimates and assumptions that have a material impact on the carrying value of certain assets and liabilities, and we consider these critical accounting policies. For a description of these critical accounting policies, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” in our 2020 Annual Report on Form 10-K. Actual results could differ significantly from these estimates and assumptions, which could have a material impact on the carrying value of assets and liabilities at the balance sheet dates and our results of operations for the reporting periods. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Company’s Board of Directors.

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Executive Overview

Net income was $16.7 million, or $0.54 per diluted share, for the three months ended March 31, 2021 compared with $2.4 million, or $0.08 per diluted share, for the same period a year ago. The increase in net income for the 2021 first quarter primarily reflects a $7.4 million qualitative provision associated with the COVID-19 pandemic, a $4.9 million provision related to changes in other qualitative factors, a $2.6 million specific provision for a previously identified troubled loan relationship, and a $823,000 provision for off-balance sheet items.

Other financial highlights include the following:

• Cash and due from banks increased $254.6 million to $646.4 million as of March 31, 2021 from $391.8 million at December 31, 2020, primarily from a higher volume of non-interest bearing deposits, reflecting proceeds from PPP loans and other government assistance programs, as well as an increase in our marketing efforts.

• Loans receivable, before allowance for credit losses, were $4.82 billion at March 31, 2021 compared with $4.88 billion at December 31, 2020.

• Deposits were $5.51 billion at March 31, 2021 compared with $5.28 billion at December 31, 2020. The increase reflects principally a $275.9 million increase in non-interest bearing demand deposits.

Results of Operations

Net Interest Income

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

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

	Three Months Ended
	March 31, 2021								March 31, 2020
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
Assets	(in thousands)
Interest-earning assets:
Loans receivable (1)	$	4,843,825		$	50,614		4.24	%	$	4,518,395		$	54,648		4.86	%
Securities (2)		774,022			1,140		0.59	%		623,711			3,655		2.34	%
FHLB stock		16,385			206		5.10	%		16,385			289		7.10	%
Interest-bearing deposits in other banks		395,602			96		0.10	%		104,513			333		1.28	%
Total interest-earning assets		6,029,834			52,056		3.50	%		5,263,004			58,925		4.50	%
Noninterest-earning assets:
Cash and due from banks		56,666								97,896
Allowance for credit losses		(89,681	)							(61,054	)
Other assets		233,146								204,807
Total assets	$	6,229,965							$	5,504,653
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	102,980		$	14		0.05	%	$	82,934		$	21		0.10	%
Money market and savings		1,967,012			1,479		0.30	%		1,687,013			4,780		1.14	%
Time deposits		1,238,513			2,465		0.81	%		1,522,745			7,942		2.10	%
Total interest-bearing deposits		3,308,505			3,958		0.49	%		3,292,692			12,743		1.56	%
Borrowings		150,000			478		1.29	%		130,659			496		1.53	%
Subordinated debentures		119,040			1,619		5.44	%		118,444			1,712		5.78	%
Total interest-bearing liabilities		3,577,545			6,055		0.69	%		3,541,795			14,951		1.70	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,991,204								1,333,697
Other liabilities		80,060								69,205
Stockholders' equity		581,156								559,956
Total liabilities and stockholders' equity	$	6,229,965							$	5,504,653
Net interest income (taxable equivalent basis)				$	46,001							$	43,974
Cost of deposits (3)							0.30	%							1.11	%
Net interest spread (taxable equivalent basis) (4)							2.81	%							2.80	%
Net interest margin (taxable equivalent basis) (5)							3.09	%							3.36	%

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

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

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

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

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

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

	Three Months Ended
	March 31, 2021 vs March 31, 2020
	Increases (Decreases) Due to Change In
	Volume			Rate			Total
	(in thousands)
Interest and dividend income:
Loans receivable (1)	$	3,530		$	(7,564	)	$	(4,034	)
Securities (2)		699			(3,214	)		(2,515	)
FHLB stock		—			(83	)		(83	)
Interest-bearing deposits in other banks		279			(516	)		(237	)
Total interest and dividend income		4,508			(11,377	)		(6,869	)
Interest expense:
Demand: interest-bearing	$	4		$	(11	)	$	(7	)
Money market and savings		674			(3,975	)		(3,301	)
Time deposits		(1,276	)		(4,201	)		(5,477	)
Borrowings		66			(84	)		(18	)
Subordinated debentures		8			(101	)		(93	)
Total interest expense		(524	)		(8,372	)		(8,896	)
Change in net interest income	$	5,032		$	(3,005	)	$	2,027

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

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

Interest and dividend income, on a taxable equivalent basis, decreased $6.9 million, or 11.7 percent, to $52.1 million for the three months ended March 31, 2021 from $58.9 million for the same period in 2020 due primarily to a $4.0 million or 7.4 percent decrease in the interest on loans and a $2.5 million or 68.8 percent decrease in the interest on securities. Interest expense decreased $8.9 million, or 59.5 percent, to $6.1 million for the three months ended March 31, 2021 from $15.0 million for the same period in 2020 due primarily to a $8.8 million or 68.9 percent decrease in the interest on deposits. For the three months ended March 31, 2021 and 2020, net interest income, on a taxable equivalent basis, was $46.0 million and $44.0 million, respectively. The increase in net interest income was primarily due to the decrease in interest expense on interest-bearing liabilities, partially offset by the decrease in interest income on interest-earning assets. The net interest spread and net interest margin, on a taxable equivalent basis, for the three months ended March 31, 2021 were 2.81 percent and 3.09 percent, respectively, compared with 2.80 percent and 3.36 percent, respectively, for the same period in 2020.

The average balance of interest earning assets increased $766.8 million, or 14.6 percent, to $6.03 billion as of March 31, 2021 from $5.26 billion for the three months ended March 31, 2020. The average balance of loans increased $325.4 million, or 7.2 percent, to $4.84 billion for the three months ended March 31, 2021 from $4.52 billion as of March 31, 2020. The average balance of securities increased $150.3 million, or 24.1 percent, to $774.0 million for the three months ended March 31, 2021 from $623.7 million as of March 31, 2020. The increase in the average balance of loans was due mainly to new loan production driven by PPP loans.

The average yield on interest-earning assets, on a taxable equivalent basis, decreased 100 basis points to 3.50 percent for the three months ended March 31, 2021 from 4.50 percent for the three months ended March 31, 2020, mainly due to the origination of $440.3 million of PPP loans at a rate of one percent during the second quarter of 2020 and first quarter of 2021. The average yield on loans decreased to 4.24 percent for the three months ended March 31, 2021 from 4.86 percent for the three months ended March 31, 2020, primarily due to the continued decrease in market interest rates commencing in the first quarter of 2020 and the origination of $308.8 million of first draw PPP loans at a rate of one percent during the second quarter of 2020. The average yield on securities, on a taxable equivalent basis, decreased to 0.59 percent for the three months ended March 31, 2021 from 2.34 percent for the three months ended March 31, 2020, attributable to the sale of most of the portfolio during second quarter 2020 and subsequently reinvesting into a portfolio of lower yielding securities due to the continued decline in market interest rates.

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The average balance of interest-bearing liabilities increased $35.8 million, or 1.0 percent, to $3.58 billion as of March 31, 2021 compared to $3.54 billion as of March 31, 2020. The increase in average interest-bearing liabilities resulted primarily from higher noninterest bearing demand deposits, money market and savings balances, offset by a decrease in time deposits. The average cost of interest-bearing liabilities decreased by 101 basis points to 0.69 percent for the three months ended March 31, 2021 from 1.70 percent for the three months ended March 31, 2020. The decrease was due to lower market interest rates and a shift away from time deposits to low-interest money market and savings accounts.

Credit Loss Expense

For the three months ended March 31, 2021, credit loss expense was $2.1 million, comprised of a $1.0 million provision for loan losses, a $2.1 million provision for an SBA guarantee repair loss, a $450,000 negative provision for off-balance sheet items and a $471,000 negative provision for losses on accrued interest receivable for loans currently or previously modified under the CARES Act. For the same period in 2020, loan loss provision was $14.9 million and provision for off-balance sheet items was $823,000. The credit loss expense for the three months ended March 31, 2021 compared to the same period in 2020 reflected the higher allowance as of March 31, 2020 from a $7.4 million qualitative provision associated with the COVID-19 pandemic, a $4.9 million provision related to other qualitative factors, an additional provision for a previously identified troubled loan relationship of $2.6 million, and an off-balance sheet provision of $823,000.

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

Noninterest Income

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

	Three Months Ended March 31,				Increase (Decrease)
	2021		2020		Amount
	(in thousands)
Service charges on deposit accounts	$	2,357	$	2,400	$	(43	)
Trade finance and other service charges and fees		1,034		986		48
Servicing income		846		561		285
Bank-owned life insurance income		256		277		(21	)
All other operating income		841		845		(4	)
Service charges, fees & other		5,334		5,069		265
Gain on sale of SBA loans		1,671		1,154		517
Gain on sale of PPP loans		2,454		—		2,454
Net gain on sales of securities		99		—		99
Legal settlement		250		—		250
Total noninterest income	$	9,808	$	6,223	$	3,585

For the three months ended March 31, 2021, noninterest income was $9.8 million, an increase of $3.6 million, or 57.6 percent, compared with $6.2 million for the same period in 2020. Most of the increase was attributable to a $2.5 million gain on the sale of $108.6 million of PPP loans originated during the quarter, and $1.7 million in gains on the sale of $18.1 million of non-PPP 7(a) SBA loans during the three months ended March 31, 2021 compared with $1.2 million for the three months ended March 31, 2020.

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Noninterest Expense

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

	Three Months Ended March 31,				Increase (Decrease)
	2021		2020		Amount
	(in thousands)
Salaries and employee benefits	$	16,820	$	17,749	$	(929	)
Occupancy and equipment		4,595		4,475		120
Data processing		2,926		2,669		257
Professional fees		1,447		1,915		(468	)
Supplies and communications		757		781		(24	)
Advertising and promotion		359		734		(375	)
All other operating expenses		2,378		2,722		(344	)
Subtotal		29,282		31,045		(1,763	)
Other real estate owned expense		221		2		219
Repossessed personal property expense		32		21		11
Total noninterest expense	$	29,535	$	31,068	$	(1,533	)

For the three months ended March 31, 2021, noninterest expense was $29.5 million, a decrease of $1.5 million, or 4.9 percent, compared with $31.1 million for the same period in 2020. Salaries and benefits decreased $929,000, as $1.4 million in capitalized costs from second draw PPP originations was offset partially by higher incentive compensation expense. Noninterest expense also benefited from lower professional fees related to a prior year troubled loan relationship resolved in 2020 and prior year implementation costs of the new CECL standard, and lower advertising and promotion expense, offset partially higher data processing costs and other real estate owned expense.

Income Tax Expense

Income tax expense was $7.5 million and $1.0 million representing an effective income tax rate of 31.1 percent and 30.7 percent for the three months ended March 31, 2021 and 2020, respectively. The increase in the effective tax rate for the three months ended March 31, 2021, compared to the same period in 2020 was principally due to an increase in pre-tax earnings.

Financial Condition

Securities

As of March 31, 2021, our securities portfolio consisted of U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities and, to a lesser extent, U.S. Treasury securities. Most of these securities carry fixed interest rates. Other than holdings of U.S. government agency and sponsored agency obligations, there were no securities of any one issuer exceeding 10 percent of stockholders’ equity as of March 31, 2021 and December 31, 2020.

The following table summarizes the contractual maturity schedule for securities, at amortized cost, and their cost weighted average yield, which is calculated using amortized cost as the weight and tax-equivalent book yield, as of March 31, 2021:

						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:
U.S. Treasury securities	$	9,998		2.67	%	$	—		0.00	%	$	—		0.00	%	$	—		0.00	%	$	9,998		2.67	%
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		1,174		1.67	%		2,937		1.35	%		—		0.00	%		575,098		0.86	%		579,209		0.86	%
Collateralized mortgage obligations		—		0.00	%		746		1.47	%		978		1.19	%		111,084		0.26	%		112,808		0.28	%
Debt securities		—		0.00	%		75,660		0.54	%		10,000		0.85	%		—		0.00	%		85,660		0.58	%
Total U.S. government agency and sponsored agency obligations		1,174		1.67	%		79,343		0.58	%		10,978		0.88	%		686,182		0.76	%		777,677		0.75	%
Total securities available for sale	$	11,172		2.56	%	$	79,343		0.58	%	$	10,978		0.88	%	$	686,182		0.76	%	$	787,675		0.77	%

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Loans Receivable

As of March 31, 2021 and December 31, 2020, loans receivable (excluding loans held for sale), net of deferred loan fees and costs, discounts and allowance for credit losses, were $4.73 billion and $4.79 billion, respectively, representing a decrease of $61.0 million, or 1.3 percent. The decrease reflects $303.3 million in loan sales and payoffs, including $108.6 million in second draw PPP loan sales and $39.0 million in SBA PPP loan forgiveness, and amortization of $94.9 million, offset partially by $348.0 million in new loan production, including $131.5 million of second draw PPP loan production.

During the three months ended March 31, 2021, total loan disbursements consisted of $103.1 million in commercial real estate loans, $34.1 million in leases receivable, $42.3 million in commercial and industrial loans, $155.9 million in SBA loans ($131.5 million in second draw PPP loans) and $12.7 million in residential/consumer loans.

The table below shows the maturity distribution of outstanding loans as of March 31, 2021. In addition, the table shows the distribution of such loans between those with floating or variable interest rates and those with fixed or predetermined interest rates.

	Within One Year		After One Year but Within Five Years		After Five Years but Within Fifteen Years		After Fifteen Years		Total
	(in thousands)
Real estate loans:
Commercial property
Retail	$	174,754	$	532,914	$	103,915	$	—	$	811,583
Hospitality		223,908		578,520		39,586		—		842,014
Other		214,603		983,650		339,945		117,867		1,656,065
Total commercial property loans		613,265		2,095,084		483,446		117,867		3,309,662
Construction		61,910		716		—		—		62,626
Residential/consumer loans		4,034		1,418		5,832		316,944		328,228
Total real estate loans		679,209		2,097,218		489,278		434,811		3,700,516
Commercial and industrial loans		219,926		406,624		80,523		—		707,073
Leases receivable		19,566		363,683		26,313		—		409,562
Loans receivable	$	918,701	$	2,867,525	$	596,114	$	434,811	$	4,817,151
Loans with predetermined interest rates	$	480,084	$	1,877,300	$	138,669	$	40,670	$	2,536,723
Loans with variable interest rates		438,617		990,225		457,445		394,141		2,280,428

Industry

As of March 31, 2021, the loan portfolio included the following concentrations of loans to one type of industry that were greater than 10.0 percent of loans receivable outstanding:

			Percentage of
	Balance as of		Loans Receivable
	March 31, 2021		Outstanding
	(in thousands)
Lessor of nonresidential buildings	$	1,436,931		29.8	%
Hospitality		880,894		18.3	%

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Loan Quality Indicators

Delinquent loans (defined as 30 to 89 days past due and still accruing) were $6.9 million and $9.5 million at March 31, 2021 and December 31, 2020, respectively, representing a decrease of $2.5 million or 26.9 percent, in 2021. There were no loans 90 days or more past due and accruing at March 31, 2021 and December 31, 2020.

Special mention loans were $96.1 million at March 31, 2021 compared with $77.0 million at December 31, 2020. The quarter-over-quarter change reflects additions of $33.8 million and reductions (comprising upgrades, downgrades and payments) of $14.7 million. At March 31, 2021 and December 31, 2020, special mention loans included $72.0 million and $49.1 million, respectively, of loans identified as adversely affected by the pandemic.

Classified loans were $147.4 million at March 31, 2021 compared with $140.2 million at the end of the fourth quarter. The quarter-over-quarter change reflects additions of $28.5 million and reductions (comprising upgrades, payments, sales, and charge-offs) of $21.3 million. At March 31, 2021 and December 31, 2020, classified loans included $69.5 million and $54.0 million, respectively, of loans identified as adversely affected by the COVID-19 pandemic.

Nonperforming Assets

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

Except for nonaccrual loans and loans modified under the CARES Act set forth below, management is not aware of any other loans as of March 31, 2021 for which known credit problems of the borrower would cause serious doubts as to the ability of such borrowers to comply with their present loan or lease repayment terms, or any known events that would result in a loan or lease 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.

Nonaccrual loans were $55.1 million at March 31, 2021 or 1.14 percent of loans, compared with $83.0 million at December 31, 2020, or 1.70 percent of the portfolio. The quarter-over-quarter change reflects additions of $2.7 million loans and reductions (comprising upgrades, payments, sales, and charge-offs) of $30.6 million. At March 31, 2021, nonaccrual loans included $21.0 million of loans adversely affected by the pandemic.

Nonperforming assets were $56.6 million at the end of the first quarter of 2021, or 0.88 percent of total assets, compared with $85.4 million, or 1.38 percent, at the end of the prior quarter.

All of the $55.1 million and $83.0 million nonaccrual loans as of March 31, 2021 and December 31, 2020, respectively, were considered nonperforming and resulted in aggregate individually evaluated allowances of $12.2 million and $14.1 million, respectively. 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 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.

Loans modified under the CARES Act declined 25.0 percent to $116.4 million at March 31, 2021 from $155.6 million at December 31, 2020.  At March 31, 2021, approximately 10.6 percent, or $12.3 million, of modified loans are currently under deferred payment arrangements, compared with approximately 13.6 percent, or $21.1 million at December 31, 2020. The remainder of modified loans were making payments that are less than the contractually required amount.  Of the modified loan portfolio, at March 31, 2021, 43.6 percent were special mention and 15.6 percent were classified, compared with 20.1 percent and 15.7 percent at December 31, 2020.  In addition, 7.1 percent and 4.6 percent were on nonaccrual status at March 31, 2021 and December 31, 2020, respectively.

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Individually Evaluated Loans

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

Individually evaluated loans were $63.5 million and $91.0 million as of March 31, 2021 and December 31, 2020, respectively, representing a decrease of $27.5 million, or 30.2 percent. Specific allowances associated with individually evaluated loans decreased $1.9 million to $12.2 million as of March 31, 2021 compared with $14.1 million as of December 31, 2020.

For the three months ended March 31, 2021, there were no loans restructured which were subsequently classified as TDRs. For the year ended December 31, 2020, we restructured monthly payments for five loans, with a net carrying value of $4.5 million at the time of modification, which we subsequently classified as TDRs. 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 March 31, 2021 and December 31, 2020, TDRs on an accrual status were $8.4 million and $7.9 million, respectively, most of which were deferral of principal or extensions of maturity. A $2,000 and $5,000 allowance relating to these loans, respectively, was included in the allowance for credit losses. As of March 31, 2021 and December 31, 2020, restructured loans on nonaccrual status were $15.2 million and $17.1 million, respectively, and a $5,000 and $12,000 allowance relating to these loans, respectively, was included in the allowance for credit losses.

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

The Company’s estimate of the allowance for credit losses at March 31, 2021 and December 31, 2020 reflects losses expected over the remaining contractual life of the assets based on historical, current, and forward-looking information. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring.

Management selected three loss methodologies for the collective allowance estimation. At March 31, 2021, the Company used the discounted cash flow (“DCF”) method to estimate allowances for credit losses for the commercial and industrial loan portfolio, the PD/LGD method for the commercial property, construction and residential property portfolios, and the Weighted Average Remaining Maturity (“WARM”) method to estimate expected credit losses for equipment financing agreements or the equipment lease receivables portfolio. Loans that do not share similar risk characteristics are individually evaluated for allowances.

For all loan pools utilizing the DCF method, the Company determined that four quarters represented a reasonable and supportable forecast period and reverted to a historical loss rate over twelve quarters on a straight-line basis. For each of these loan segments, the Company applied an annualized historical Probability of Default/Loss Given Default (“PD/LGD”) using all available historical periods. Since reasonable and supportable forecasts of economic conditions are imbedded directly into the DCF model, qualitative adjustments are reduced but considered. The PD/LGD method incorporates a forecast into loss estimates using a qualitative adjustment.

The Company used the Weighted Average Remaining Maturity (“WARM”) method to estimate expected credit losses for equipment financing agreements or the equipment lease receivables portfolio. The Company applied an expected loss ratio based on internal historical losses adjusted as appropriate for qualitative factors.

As of March 31, 2021 and December 31, 2020, the Company relied on the economic projections from Moody’s Analytics Economic Scenarios and Forecasts to inform its loss driver forecasts over the four-quarter forecast period whereas it had previously relied on Federal Reserve Economic Database economic data. For all loan pools, the Company utilizes and forecasts the national unemployment rate as the primary loss driver.

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

The allowance for credit losses was $88.4 million at March 31, 2021 compared with $90.4 million at December 31, 2020.  The allowance attributed to individually evaluated loans was $12.2 million at March 31, 2021 compared with $14.1 million at December 31, 2020. The allowance attributed to collectively evaluated loans was $76.2 million at March 31, 2021 compared with $76.4 million at December 31, 2020, and considered the impact of changes in macroeconomic assumptions including an improving unemployment rate for the subsequent four quarters.  The Company recognizes the inherent uncertainties in the estimate of the allowance for credit losses and the effect the COVID-19 pandemic may have on borrowers. The following table reflects our

48

allocation of the allowance for credit losses by loan category as well as the loans receivable for each loan category to total loans, including related percentages:

	March 31, 2021							December 31, 2020
			Loans							Loans
	Allowance Amount		Total Loans		Percentage of Total Loans			Allowance Amount		Total Loans		Percentage of Total Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	3,962	$	811,583		16.8	%	$	4,855	$	824,606		16.9	%
Hospitality		38,251		842,014		17.5	%		28,801		859,953		17.6	%
Other		11,121		1,656,065		34.4	%		13,991		1,610,377		33.0	%
Total commercial property loans		53,334		3,309,662		68.7	%		47,647		3,294,936		67.5	%
Construction		3,670		62,626		1.3	%		2,876		58,882		1.2	%
Residential/consumer loans		758		328,228		6.8	%		1,353		345,831		7.1	%
Total real estate loans		57,762		3,700,516		76.8	%		51,876		3,699,649		75.8	%
Commercial and industrial loans		16,387		707,073		14.7	%		21,410		757,255		15.5	%
Leases receivable		14,243		409,562		8.5	%		17,140		423,264		8.7	%
Total	$	88,392	$	4,817,151		100.0	%	$	90,426	$	4,880,168		100.0	%

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

	As of
	March 31, 2021			December 31, 2020
	(in thousands)
Ratios:
Allowance for credit losses to loans receivable		1.83	%		1.85	%
Nonaccrual loans to loans		1.14	%		1.70	%
Allowance for credit losses to nonaccrual loans		160.54	%		108.91	%
Balance:
Nonaccrual loans at end of period	$	55,058		$	83,032
Nonperforming loans at end of period	$	55,058		$	83,032

As of March 31, 2021 and December 31, 2020, the allowance for credit losses related to off-balance sheet items, primarily unfunded loan commitments, was $2.3 million and $2.8 million, respectively. The Bank closely monitors the borrower’s repayment capabilities, while funding existing commitments to ensure losses are minimized. Based on management’s evaluation and analysis of portfolio credit quality and prevailing economic conditions, we believe these allowances were adequate for current expected lifetime losses in the loan portfolio and off-balance sheet exposure as of March 31, 2021.

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

	Three Months Ended
	Average Loans		Net Charge-Offs (Recoveries)			Net Charge-Offs (Recoveries) to Average Loans (1)
	(in thousands)
March 31, 2021
Real estate loans	$	3,704,694	$	1,236			0.13	%
Commercial and industrial loans		723,343		(6	)		(0.00	)%
Leases receivable		415,788		1,768			1.70	%
Total	$	4,843,825	$	2,998			0.25	%
March 31, 2020
Real estate loans	$	3,592,136	$	14,085			1.57	%
Commercial and industrial loans		432,633		12,066			11.16	%
Leases receivable		493,626		1,107			0.90	%
Total	$	4,518,395	$	27,258			2.41	%

⁽¹⁾ Annualized

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For the three months ended March 31, 2021, gross charge-offs were $3.5 million, a decrease of $24.0 million, or 87.2 percent, from $27.5 million for the same period in 2020 and recoveries were $507,000, an increase of $291,000 or 134.7 percent, from $216,000 in 2020. Net loan charge-offs were $3.0 million, or 0.25 percent of average loans, compared with $27.3 million, or 2.41 percent of average loans, for the three months ended March 31, 2021 and 2020, respectively.

Deposits

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

	March 31, 2021					December 31, 2020
	Balance		Percent			Balance		Percent
	(dollars in thousands)
Demand – noninterest-bearing	$	2,174,624		39.5	%	$	1,898,766		36.0	%
Interest-bearing:
Demand		111,362		2.0	%		100,617		1.9	%
Money market and savings		2,029,824		36.8	%		1,991,926		37.8	%
Uninsured time deposits of more than $250,000:
Three months or less		182,827		3.3	%		134,543		2.6	%
Over three months through six months		10,047		0.2	%		70,011		1.3	%
Over six months through twelve months		64,234		1.2	%		52,401		1.0	%
Over twelve months		2,505		0.0	%		8,633		0.2	%
Other time deposits		934,400		17.0	%		1,018,111		19.3	%
Total deposits	$	5,509,823		100.0	%	$	5,275,008		100.0	%

Total deposits were $5.51 billion and $5.28 billion as of March 31, 2021 and December 31, 2020, respectively, representing an increase of $234.8 million, or 4.5 percent.

Growth was primarily driven by an increase in noninterest-bearing demand deposits and to a lesser extent increases in money market and savings deposits and interest-bearing demand deposits, partially offset by a reduction in time deposits. At March 31, 2021, the loan-to-deposit ratio was 87.4 percent compared with 92.5 percent at the end of the previous quarter. The increase in noninterest-bearing deposits reflects growth from new and existing customer relationships as well as increases from second draw PPP loans and similar economic stimulus activities.

As of March 31, 2021, the aggregate amount of uninsured deposits (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) was $2.27 billion, of which $2.01 billion were demand deposits and money market and savings deposits and $259.6 million were time deposits. As of December 31, 2020, the aggregate amount of uninsured deposits was $2.09 billion, consisting of $1.82 billion in demand deposits and money market and savings deposits and $265.6 million in time deposits.

Borrowings and Subordinated Debentures

Borrowings mostly take the form of advances from the FHLB. At March 31, 2021 and December 31, 2020, advances from the FHLB were $150.0 million. At March 31, 2021 and December 31, 2020, the Bank had $150.0 million in term advances and no overnight advances from the FHLB.

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

	March 31, 2021					December 31, 2020
FHLB of San Francisco	Outstanding Balance		Weighted Average Rate			Outstanding Balance		Weighted Average Rate
	(dollars in thousands)
Advances due over 12 months through 24 months	$	50,000		1.63	%	$	50,000		1.62	%
Advances due over 24 months through 36 months		50,000		0.37	%		50,000		0.97	%
Outstanding advances over 12 months	$	100,000		1.00	%	$	100,000		1.30	%

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The weighted-average interest rate at March 31, 2021 and December 31, 2020 were 1.20 percent and 1.40 percent, respectively, and weighted-average interest rate for the three months ended March 31, 2021 and December 31, 2020 were 1.29 percent and 1.42 percent, respectively.  Average balances of FHLB advances for the three months ended March 31, 2021 and December 31, 2020 were $150.0 million and $156.6 million, respectively, with maximum amount outstanding at any month end during the three months period ended March 31, 2021 and December 31, 2020 of $150.0 million and $300.0 million, respectively.

Subordinated debentures were $119.1 million as of March 31, 2021 and $119.0 million as of December 31, 2020. Subordinated debentures are comprised of fixed-to-floating subordinated notes of $98.6 million and $98.5 million as of March 31, 2021 and December 31, 2020, respectively, and junior subordinated deferrable interest debentures of $20.5 million and $20.4 million as of March 31, 2021 and December 31, 2020, respectively. See “Note 8 – Borrowings and Subordinated Debentures” to the consolidated financial statements for more details.

Interest Rate Risk Management

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

The Company performs simulation modeling to estimate the potential effects of interest rate changes. The following table summarizes one of the stress simulations performed to forecast the impact of changing interest rates on net interest income and the value of interest-earning assets and interest-bearing liabilities reflected on our balance sheet (i.e., an instantaneous parallel shift in the yield curve of the magnitude indicated below) as of March 31, 2021. The Company compares this stress simulation to policy limits, which specify the maximum tolerance level for net interest income exposure over a 1- to 12-month and a 13- to 24- month horizon, given the basis point adjustment in interest rates reflected below.

	Net Interest Income Simulation
Change in	1- to 12-Month Horizon						13- to 24-Month Horizon
Interest	Dollar			Percentage			Dollar			Percentage
Rate	Change			Change			Change			Change
	(dollars in thousands)
300%	$	33,652			16.92	%	$	47,830			24.19	%
200%	$	22,135			11.13	%	$	31,776			16.07	%
100%	$	11,190			5.63	%	$	16,783			8.49	%
(100%)	$	(7,254	)		(3.65	%)	$	(12,328	)		(6.23	%)

Change in	Economic Value of Equity (EVE)
Interest	Dollar			Percentage
Rate	Change			Change
	(dollars in thousands)
300%	$	156,938			29.45	%
200%	$	116,316			21.82	%
100%	$	69,132			12.97	%
(100%)	$	(125,598	)		(23.57	%)

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 receivable and securities, pricing strategies on loans receivable 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.

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Capital Resources and Liquidity

Capital Resources

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

In response to the uncertainty surrounding the COVID-19 pandemic, the Board reduced the quarterly cash dividend paid on common stock for the third and fourth quarter of 2020 to $0.08 per share from $0.12 per share and $0.24 per share in the second and first quarters of 2020, respectively. The Board believed these actions were the most prudent course of action as it continued to monitor the results of operations and financial condition of the Company. During the first quarter of 2021, the Board authorized an increase in the quarterly cash dividend to $0.10 per share due to the stabilization of Company results and financial condition. In addition, during the second quarter of 2021, due to the continued stabilization of Company results and financial condition, the Board authorized an increase in the quarterly cash dividend to $0.12 per share. The Board expects to continue to re-evaluate the level of quarterly dividends in subsequent quarters.

The Company’s ability to pay dividends to shareholders depends in part upon dividends it receives from the Bank. California law restricts the amount available for cash dividends to the lesser of a bank’s retained earnings or net income for its last three fiscal years (less any distributions to shareholders made during such period).  Where the above test is not met, cash dividends may still be paid, with the prior approval of the Department of Financial Protection and Innovation (“DFPI”), in an amount not exceeding the greatest of: (1) retained earnings of the bank; (2) net income of the bank for its last fiscal year; or (3) the net income of the bank for its current fiscal year.  As of April 1, 2021, after giving effect to the 2021 second quarter dividend declared by the Company, the Bank has the ability to pay $13.5 million of dividends without the prior approval of the Commissioner of the DFPI.

At March 31, 2021, the Bank’s total risk-based capital ratio of 15.26 percent, Tier 1 risk-based capital ratio of 14.01 percent, common equity Tier 1 capital ratio of 14.01 percent and Tier 1 leverage capital ratio of 10.99 percent, placed the Bank in the “well capitalized” category pursuant to capital rules, which is defined as institutions with total risk-based capital ratio equal to or greater than 10.00 percent, Tier 1 risk-based capital ratio equal to or greater than 8.00 percent, common equity Tier 1 capital ratios equal to or greater than 6.50 percent, and Tier 1 leverage capital ratio equal to or greater than 5.00 percent.

At March 31, 2021, the Company's total risk-based capital ratio was 15.54 percent, Tier 1 risk-based capital ratio was 12.26 percent, common equity Tier 1 capital ratio was 11.84 percent and Tier 1 leverage capital ratio was 9.61 percent.

For a discussion of implemented changes to the capital adequacy framework prompted by Basel III and the Dodd- Frank Wall Street Reform and Consumer Protection Act, see our 2020 Annual Report on Form 10-K.

Liquidity

For a discussion of liquidity for the Company, see Note 14 - Liquidity included in the notes to unaudited consolidated financial statements in this Report and Note 22 – Liquidity in our 2020 Annual Report on Form 10-K.

Off-Balance Sheet Arrangements

For a discussion of off-balance sheet arrangements, see Note 12 - Off-Balance Sheet Commitments included in the notes to unaudited consolidated financial statements in this Report and “Item 1. Business - Off-Balance Sheet Commitments” in our 2020 Annual Report on Form 10-K.

Contractual Obligations

There have been no material changes to the contractual obligations described in our 2020 Annual Report on Form 10-K.

Recently Issued Accounting Standards Not Yet Effective

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

52

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

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

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

Item 3. Quantitative and Qualitative Disclosures about Market Risk

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

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

During the three months ended March 31, 2021, pursuant to Rule 13a-15 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), our management, including our principal executive officer and principal financial officer, conducted an evaluation of the effectiveness and design of our disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) and have concluded that the Company’s disclosure controls and procedures are effective as of the end of the period covered by this Quarterly Report on Form 10-Q.  

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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 risk factors applicable to the Corporation from those disclosed in "Risk Factors" in Item 1A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2020.

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

On January 24, 2019, the Company announced a stock repurchase program that authorized the repurchase of up to 5 percent of its outstanding shares or approximately 1.5 million shares of common stock. As of March 31, 2021, 934,600 shares remained available for future purchases under that stock repurchase program. Shortly following the federal proclamation declaring a national emergency concerning the COVID-19 outbreak, Hanmi suspended its share repurchase program, however, this program was reinstated in February 2021. In addition to the shares noted in the table below, during the three months ended March 31, 2021, the Company acquired 4,682 shares from employees in connection with the satisfaction of employee tax withholding obligations incurred through vesting of Company stock awards.

The following table represents information with respect to repurchases of common stock made by the Company during the three months ended March 31, 2021:

Purchase Date:	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Maximum Shares That May Yet Be Purchased Under the Program
January 1, 2021 - January 31, 2021	$	—		—		989,600
February 1, 2021 - February 28, 2021	$	16.86		25,000		964,600
March 1, 2021 - March 31, 2021	$	17.48		30,000		934,600
Total	$	17.20		55,000		934,600

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

Exhibit Number	Document
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document *
101.SCH	Inline XBRL Taxonomy Extension Schema Document *
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document *
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document *
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document *
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document *
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, formatted in Inline XBRL

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

† Constitutes a management contract or compensatory plan or arrangement.

55

Signatures

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

		Hanmi Financial Corporation
Date:	May 10, 2021	By:	/s/ Bonita I. Lee
			Bonita I. Lee
			President and Chief Executive Officer (Principal Executive Officer)

Date:	May 10, 2021	By:	/s/ Romolo C. Santarosa
			Romolo C. Santarosa
			Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)

56

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer

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

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

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

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

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 andhave:

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

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

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

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

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

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

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

Date:	May 10, 2021	/s/ Bonita I. Lee
		Bonita I. Lee
		President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer

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

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

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

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

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

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

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

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

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

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

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

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

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

Date:	May 10, 2021	/s/ Romolo C.Santarosa
		Romolo C. Santarosa
		Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

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

Section 906 of The Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Hanmi Financial Corporation (the “Company”) on Form 10-Q for the period ended March 31, 2021, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), I, Bonita I. Lee, President and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge that:

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

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

Date:	May 10, 2021	/s/ Bonita I. Lee
		Bonita I. Lee
		President and Chief Executive Officer

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

EX-32.2

Exhibit 32.2

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

Section 906 of The Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Hanmi Financial Corporation (the “Company”) on Form 10-Q for the period ended March 31, 2021, as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), I, Romolo C. Santarosa, Senior Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge that:

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

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

Date:	May 10, 2021	/s/ Romolo C.Santarosa
		Romolo C. Santarosa
		Senior Executive Vice President and Chief Financial Officer

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

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	May 03, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Trading Symbol	HAFC
Entity Registrant Name	HANMI FINANCIAL CORPORATION
Entity Central Index Key	0001109242
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		30,694,659
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	000-30421
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4788120
Entity Address, Address Line One	900 Wilshire Boulevard
Entity Address, Address Line Two	Suite 1250
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90017
City Area Code	213
Local Phone Number	382-2200
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, $0.001 par value
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 646,445	$ 391,849
Securities available for sale, at fair value (amortized cost of $787,675 as of March 31, 2021 and $749,458 as of December 31, 2020)	780,114	753,781
Loans held for sale, at the lower of cost or fair value	32,674	8,568
Loans receivable, net of allowance for credit losses of $88,392 as of March 31, 2021 and $90,426 as of December 31, 2020	4,728,759	4,789,742
Accrued interest receivable	14,806	16,363
Premises and equipment, net	26,398	26,431
Customers' liability on acceptances	735	1,319
Servicing assets	6,150	6,212
Goodwill and other intangible assets, net	11,558	11,612
Federal Home Loan Bank ("FHLB") stock, at cost	16,385	16,385
Income tax assets	42,665	42,704
Bank-owned life insurance	54,150	53,894
Prepaid expenses and other assets	77,562	83,028
Total assets	6,438,401	6,201,888
Deposits:
Noninterest-bearing	2,174,624	1,898,766
Interest-bearing	3,335,199	3,376,242
Total deposits	5,509,823	5,275,008
Accrued interest payable	2,352	4,564
Bank's liability on acceptances	735	1,319
Borrowings	150,000	150,000
Subordinated debentures ($126,800 face amount less unamortized discount and debt issuance costs of $7,676 and $7,828 as of March 31, 2021 and December 31, 2020, respectively)	119,124	118,972
Accrued expenses and other liabilities	74,545	74,981
Total liabilities	5,856,579	5,624,844
Stockholders' equity:
Preferred Stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of March 31, 2021 and December 31, 2020
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 33,585,181 shares (30,682,533 shares outstanding) as of March 31, 2021 and issued 33,560,801 shares (30,717,835 shares outstanding) as of December 31, 2020	33	33
Additional paid-in capital	578,958	578,360
Accumulated other comprehensive (loss) income, net of tax benefit of $2,268 as of March 31, 2021 and net of tax expense of $1,247 as of December 31, 2020	(5,293)	3,076
Retained earnings	128,211	114,621
Less treasury stock; 2,902,648 shares as of March 31, 2021 and 2,842,966 shares as of December 31, 2020	(120,087)	(119,046)
Total stockholders' equity	581,822	577,044
Total liabilities and stockholders' equity	$ 6,438,401	$ 6,201,888

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Amortized cost of securities available for sale	$ 787,675	$ 749,458
Loans receivable, allowance for credit losses	88,392	90,426
Face amount of subordinated debentures	126,800	126,800
Unamortized discount and debt issuance costs	$ 7,676	$ 7,828
Preferred stock par value (in USD per share)	$ 0.001	$ 0.001
Preferred stock authorized (shares)	10,000,000	10,000,000
Preferred stock issued (shares)	0	0
Common stock par value (in USD per share)	$ 0.001	$ 0.001
Common stock authorized (shares)	62,500,000	62,500,000
Common stock issued (shares)	33,585,181	33,560,801
Common stock outstanding (shares)	30,682,533	30,717,835
Accumulated other comprehensive (loss) income, tax (benefit) expense	$ (2,268)	$ 1,247
Treasury stock (shares)	2,902,648	2,842,966

XML

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Interest and dividend income:
Interest and fees on loans receivable	$ 50,614,000	$ 54,648,000
Interest on securities	1,140,000	3,655,000
Dividends on FHLB stock	206,000	289,000
Interest on deposits in other banks	96,000	333,000
Total interest and dividend income	52,056,000	58,925,000
Interest expense:
Interest on deposits	3,958,000	12,742,000
Interest on borrowings	478,000	496,000
Interest on subordinated debentures	1,619,000	1,712,000
Total interest expense	6,055,000	14,950,000
Net interest income before credit loss expense	46,001,000	43,975,000
Credit loss expense	2,109,000	15,739,000
Net interest income after credit loss expense	43,892,000	28,236,000
Noninterest income:
Service charges on deposit accounts	2,357,000	2,400,000
Trade finance and other service charges and fees	1,034,000	986,000
Gain on sale of Small Business Administration ("SBA") loans	4,125,000	1,154,000
Net gain on sales of securities	99,000
Other operating income	2,193,000	1,683,000
Total noninterest income	9,808,000	6,223,000
Noninterest expense:
Salaries and employee benefits	16,820,000	17,749,000
Occupancy and equipment	4,595,000	4,475,000
Data processing	2,926,000	2,669,000
Professional fees	1,447,000	1,915,000
Supplies and communications	757,000	781,000
Advertising and promotion	359,000	734,000
Other operating expenses	2,631,000	2,745,000
Total noninterest expense	29,535,000	31,068,000
Income before tax	24,165,000	3,391,000
Income tax expense	7,506,000	1,041,000
Net income	$ 16,659,000	$ 2,350,000
Basic earnings per share	$ 0.54	$ 0.08
Diluted earnings per share	$ 0.54	$ 0.08
Weighted-average shares outstanding:
Basic	30,461,681	30,469,022
Diluted	30,473,970	30,472,899

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 16,659	$ 2,350
Unrealized gain on securities:
Unrealized holding gain arising during period	(11,785)	11,924
Less: reclassification adjustment for net gain included in net income	(99)
Income tax benefit (expense) related to items of other comprehensive income	3,515	(3,439)
Other comprehensive income (loss), net of tax	(8,369)	8,485
Comprehensive income	$ 8,290	$ 10,835

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock - Number of Shares, Shares Issued	Common Stock - Number of Shares, Shares Issued Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock - Number of Shares, Treasury Shares	Common Stock - Number of Shares, Treasury Shares Cumulative Effect, Period of Adoption, Adjusted Balance	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance
Balance at beginning of period at Dec. 31, 2019	$ 563,268			$ 33		$ (116,515)		$ 575,816		$ 3,382		$ 100,552
Balance at beginning of period (ASU 2016-13) at Dec. 31, 2019		$ (12,167)											$ (12,167)
Beginning balance, shares issued (shares) at Dec. 31, 2019				33,475,402	33,475,402
Beginning balance, treasury stock (shares) at Dec. 31, 2019						(2,675,778)	(2,675,778)
Beginning balance, shares outstanding (shares) at Dec. 31, 2019				30,799,624	30,799,624
Adjusted balance at Dec. 31, 2019			$ 551,101		$ 33		$ (116,515)		$ 575,816		$ 3,382			$ 88,385
Restricted stock awards, net of forfeitures (shares)				(27,188)
Share-based compensation expense	769							769
Restricted stock surrendered due to employee tax liability	(171)					$ (171)
Restricted stock surrendered due to employee tax liability (shares)				(14,295)		(14,295)
Repurchase of common stock	(2,196)					$ (2,196)
Repurchase of common stock (shares)				(135,400)		(135,400)
Cash dividends declared (common stock, $0.24/share, $0.10/share)	(7,380)											(7,380)
Net income	2,350											2,350
Change in unrealized gain on securities available for sale, net of income taxes	8,485									8,485
Balance at end of period at Mar. 31, 2020	552,958			$ 33		$ (118,882)		576,585		11,867		83,355
Ending balance, shares issued (shares) at Mar. 31, 2020				33,448,214
Ending balance, treasury stock (shares) at Mar. 31, 2020						(2,825,473)
Ending balance, shares outstanding (shares) at Mar. 31, 2020				30,622,741
Balance at beginning of period at Dec. 31, 2020	$ 577,044			$ 33		$ (119,046)		578,360		3,076		114,621
Beginning balance, shares issued (shares) at Dec. 31, 2020				33,560,801
Beginning balance, treasury stock (shares) at Dec. 31, 2020	(2,842,966)					(2,842,966)
Beginning balance, shares outstanding (shares) at Dec. 31, 2020				30,717,835
Restricted stock awards, net of forfeitures (shares)				24,380
Share-based compensation expense	$ 598							598
Restricted stock surrendered due to employee tax liability	(95)					$ (95)
Restricted stock surrendered due to employee tax liability (shares)				(4,682)		(4,682)
Repurchase of common stock	(946)					$ (946)
Repurchase of common stock (shares)				(55,000)		(55,000)
Cash dividends declared (common stock, $0.24/share, $0.10/share)	(3,069)											(3,069)
Net income	16,659											16,659
Change in unrealized gain on securities available for sale, net of income taxes	(8,369)									(8,369)
Balance at end of period at Mar. 31, 2021	$ 581,822			$ 33		$ (120,087)		$ 578,958		$ (5,293)		$ 128,211
Ending balance, shares issued (shares) at Mar. 31, 2021				33,585,181
Ending balance, treasury stock (shares) at Mar. 31, 2021	(2,902,648)					(2,902,648)
Ending balance, shares outstanding (shares) at Mar. 31, 2021				30,682,533

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement Of Stockholders Equity [Abstract]
Common stock (in usd per share)	$ 0.24	$ 0.10

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net income	$ 16,659	$ 2,350
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,850	2,317
Share-based compensation expense	598	769
Credit loss expense	2,109	15,739
Gain on sales of securities	(99)
Gain on sales of SBA loans	(4,125)	(1,154)
Origination of SBA loans held for sale	(146,670)	(12,197)
Proceeds from sales of SBA loans	126,690	19,366
Change in bank-owned life insurance	(256)	(276)
Change in prepaid expenses and other assets	4,945	(4,905)
Change in income tax assets	3,554	4,098
Change in accrued expenses and other liabilities	(652)	(1,846)
Net cash provided by (used in) operating activities	6,602	24,262
Cash flows from investing activities:
Purchases of securities available for sale	(116,026)	(26,423)
Proceeds from matured, called and repayment of securities	67,729	49,987
Proceeds from sales of securities available for sale	8,035
Purchases of loans receivable	(298)
Purchases of premises and equipment	(1,011)	(1,244)
Proceeds from disposition of premises and equipment		44
Proceeds from sales of other real estate owned ("OREO")	589
Change in loans receivable, excluding purchases	58,271	38,884
Net cash provided by (used in) investing activities	17,289	61,248
Cash flows from financing activities:
Change in deposits	234,815	(116,894)
Change in overnight borrowings		135,000
Proceeds from borrowings		75,000
Cash paid for surrender of vested shares due to employee tax liability	(95)	(171)
Repurchase of common stock	(946)	(2,196)
Cash dividends paid	(3,069)	(7,380)
Net cash provided by (used in) financing activities	230,705	83,359
Net increase (decrease) in cash and due from banks	254,596	168,869
Cash and due from banks at beginning of year	391,849	121,678
Cash and due from banks at end of period	646,445	290,546
Supplemental disclosures of cash flow information:
Interest expense paid	8,267	16,472
Income taxes paid	125	93
Non-cash activities:
Transfer of loans receivable to other real estate owned	1
Income tax benefit (expense) related to items of other comprehensive income	$ 3,515	(3,439)
Change in right-of-use asset obtained in exchange for lease liability		$ 1,287

XML

Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation

Note 1 — Organization and Basis of Presentation

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

In management’s opinion, the accompanying unaudited consolidated financial statements of Hanmi Financial and its subsidiaries reflect all adjustments of a normal and recurring nature that are necessary for a fair presentation of the results for the interim periods ended March 31, 2021, but are not necessarily indicative of the results that will be reported for the entire year or any other interim period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. The unaudited consolidated financial statements are prepared in conformity with GAAP and in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. The interim information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report on Form 10-K”).

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

The outbreak of COVID-19 has resulted in restrictions on travel and gatherings and restricted business activities. As a result, the operations and business results of the Company could be materially adversely affected. The extent to which the COVID-19 crisis may impact business activity or financial results will depend on future developments, including new information which may emerge concerning the severity of the coronavirus and the actions required to contain the coronavirus or treat its impact, among others, which are highly uncertain and cannot be predicted. This uncertainty may impact the accuracy of our significant estimates, which includes the allowance for credit losses, the allowance for credit losses related to off-balance sheet items, and the valuation of intangible assets including deferred tax assets, goodwill, and servicing assets.

Descriptions of our significant accounting policies are included in Note 1 - Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in the 2020 Annual Report on Form 10-K.

Recently Issued Accounting Standards Not Yet Effective

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

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

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

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

XML

Securities

3 Months Ended

Mar. 31, 2021

Investments Debt And Equity Securities [Abstract]

Securities

Note 2 — Securities

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

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
	(in thousands)
March 31, 2021
U.S. Treasury securities	$	9,998	$	77	$	—		$	10,075
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		579,209		87		(7,216	)		572,080
Collateralized mortgage obligations		112,808		145		(210	)		112,743
Debt securities		85,660		31		(475	)		85,216
Total U.S. government agency and sponsored agency obligations		777,677		263		(7,901	)		770,039
Total securities available for sale	$	787,675	$	340	$	(7,901	)	$	780,114
December 31, 2020
U.S. Treasury securities	$	9,997	$	135	$	—		$	10,132
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		515,169		4,260		(188	)		519,241
Collateralized mortgage obligations		133,632		186		(217	)		133,601
Debt securities		90,660		148		(1	)		90,807
Total U.S. government agency and sponsored agency obligations		739,461		4,594		(406	)		743,649
Total securities available for sale	$	749,458	$	4,729	$	(406	)	$	753,781

The amortized cost and estimated fair value of securities as of March 31, 2021 and December 31, 2020, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities.

	March 31, 2021				December 31, 2020
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	12,963	$	13,045	$	13,305	$	13,435
Over one year through five years		90,083		89,890		139,876		140,100
Over five years through ten years		50,135		49,990		25,764		25,768
Over ten years		634,494		627,189		570,513		574,478
Total	$	787,675	$	780,114	$	749,458	$	753,781

The following table summarizes debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2021 and December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position:

	Holding Period
	Less than 12 Months							12 Months or More						Total
	Gross			Estimated		Number		Gross		Estimated		Number		Gross			Estimated		Number
	Unrealized			Fair		of		Unrealized		Fair		of		Unrealized			Fair		of
	Loss			Value		Securities		Loss		Value		Securities		Loss			Value		Securities
	(in thousands, except number of securities)
March 31, 2021
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities	$	(7,216	)	$	562,136		87	$	—	$	—		—	$	(7,216	)	$	562,136		87
Collateralized mortgage obligations		(210	)		78,602		18		—		—		—		(210	)		78,602		18
Debt securities		(475	)		55,525		9		—		—		—		(475	)		55,525		9
Total U.S. government agency and sponsored agency obligations		(7,901	)		696,263		114		—		—		—		(7,901	)		696,263		114
Total	$	(7,901	)	$	696,263		114	$	—	$	—		—	$	(7,901	)	$	696,263		114
December 31, 2020
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities	$	(188	)	$	76,023		10	$	—	$	—		—	$	(188	)	$	76,023		10
Collateralized mortgage obligations		(217	)		97,659		21		—		—		—		(217	)		97,659		21
Debt securities		(1	)		4,999		1		—		—		—		(1	)		4,999		1
Total U.S. government agency and sponsored agency obligations		(406	)		178,681		32		—		—		—		(406	)		178,681		32
Total	$	(406	)	$	178,681		32	$	—	$	—		—	$	(406	)	$	178,681		32

The Company evaluates its available-for-sale securities portfolio for impairment on an at least quarterly basis. This assessment took into account the credit quality of these debt securities and determined that since all were U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government, no credit impairment had occurred.

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

	Three Months Ended March 31,
	2021		2020
	(in thousands)
Gross realized gains on sales of securities	$	99	$	—
Gross realized losses on sales of securities		—		—
Net realized gains on sales of securities	$	99	$	—
Proceeds from sales of securities	$	8,035	$	—

During the three months ended March 31, 2021 and 2020, there were $99,000 and $0 in gains or losses, respectively, in earnings resulting from the sale of securities.

Securities available for sale with market values of $32.6 million and $27.3 million as of March 31, 2021 and December 31, 2020, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.

At March 31, 2021, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies in an amount greater than 10 percent of shareholders’ equity.

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Loans

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Loans

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:

	March 31, 2021			December 31, 2020
	(in thousands)
Real estate loans:
Commercial property
Retail	$	811,583		$	824,606
Hospitality		842,014			859,953
Other (1)		1,656,065			1,610,377
Total commercial property loans		3,309,662			3,294,936
Construction		62,626			58,882
Residential/consumer loans		328,228			345,831
Total real estate loans		3,700,516			3,699,649
Commercial and industrial loans		707,073			757,255
Leases receivable		409,562			423,264
Loans receivable		4,817,151			4,880,168
Allowance for credit losses		(88,392	)		(90,426	)
Loans receivable, net	$	4,728,759		$	4,789,742

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

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act allows financial institutions to assist customers in dealing with financial hardship by (a) providing federal funding so that financial institutions can originate SBA loans to borrowers at a low interest rate under the Paycheck Protection Program (“PPP”) loans with eventual debt forgiveness should the borrower continue to meet certain criteria; and (b) allowing financial institutions to temporarily modify loan terms by deferring loan payments, loan fees, etc. without considering them Troubled Debt Restructurings (“TDRs”).

At March 31, 2021, there were $256.5 million of PPP loans included in commercial and industrial loans in the table above.  In addition, at March 31, 2021, there were $116.4 million of loans modified under Section 4013 of the CARES Act.

Accrued interest on loans was $13.6 million and $15.2 million at March 31, 2021 and December 31, 2020, respectively. Accrued interest at March 31, 2021 and December 31, 2020 included unpaid deferred interest receivable for loans currently or previously modified under the CARES Act of $5.2 million and $7.5 million, net of a $1.2 million and $1.7 million valuation allowance, respectively.

At March 31, 2021 and December 31, 2020, loans of $2.34 billion and $2.17 billion, respectively, were pledged to secure advances from the FHLB.

Loans Held for Sale

The following is the activity for loans held for sale for the three months ended March 31, 2021 and 2020:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
March 31, 2021
Balance at beginning of period	$	8,042		$	526		$	8,568
Originations and transfers		16,283			130,387			146,670
Sales		(13,395	)		(109,169	)		(122,564	)
Principal paydowns and amortization		—			—			—
Balance at end of period	$	10,930		$	21,744		$	32,674
March 31, 2020
Balance at beginning of period	$	2,943		$	3,077		$	6,020
Originations		6,494			5,703			12,197
Sales		(9,432	)		(8,780	)		(18,212	)
Principal paydowns and amortization		(5	)		—			(5	)
Balance at end of period	$	—		$	—		$	—

Loans held for sale was comprised of $10.9 million of the guaranteed portion of SBA 7(a) loans and $21.7 million in second draw PPP loans at March 31, 2021. During the quarter ended March 31, 2021, the Company recognized $2.5 million of gains on the sale of $108.5 million second draw PPP loans.

Allowance for Credit Losses

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

	Real Estate			Commercial and Industrial			Leases Receivable			Total
	(in thousands)
March 31, 2021
Balance at beginning of period		51,877		$	21,410		$	17,139		$	90,426
Less loans charged off		1,509			93			1,903			3,505
Recoveries on loans receivable previously charged off		(273	)		(99	)		(135	)		(507	)
Provision for credit losses		7,121			(5,029	)		(1,128	)		964
Ending balance	$	57,762		$	16,387		$	14,243		$	88,392
Individually evaluated	$	11		$	7,584		$	4,561		$	12,156
Collectively evaluated	$	57,751		$	8,803		$	9,682		$	76,236
Loans receivable	$	3,700,516		$	707,073		$	409,562		$	4,817,151
Individually evaluated	$	39,144		$	14,297		$	10,025		$	63,466
Collectively evaluated	$	3,661,372		$	692,777		$	399,537		$	4,753,686
March 31, 2020
Balance at beginning of period	$	36,435		$	16,206		$	8,767		$	61,408
Adjustment related to adoption of ASU 2016-13		14,028			(2,497	)		5,902			17,433
Adjusted balance as of January 1, 2020		50,463			13,709			14,669			78,841
Less loans charged off		14,143			12,150			1,181			27,474
Recoveries on loans receivable previously charged off		(58	)		(84	)		(74	)		(216	)
Provision for credit losses		2,754			9,945			2,218			14,917
Ending balance	$	39,132		$	11,588		$	15,780		$	66,500
Individually evaluated	$	81		$	147		$	1,671		$	1,899
Collectively evaluated	$	39,051		$	11,441		$	14,109		$	64,601
Loans receivable	$	3,578,395		$	472,714		$	492,527		$	4,543,636
Individually evaluated	$	35,459		$	5,444		$	6,393		$	47,296
Collectively evaluated	$	3,542,936		$	467,270		$	486,134		$	4,496,340

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

	March 31, 2021							December 31, 2020
	Allowance Amount		Total Loans		Percentage of Total Loans			Allowance Amount		Total Loans		Percentage of Total Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	3,962	$	811,583		16.8	%	$	4,855	$	824,606		16.9	%
Hospitality		38,251		842,014		17.5	%		28,801		859,953		17.6	%
Other		11,121		1,656,065		34.4	%		13,991		1,610,377		32.9	%
Total commercial property loans		53,334		3,309,662		68.7	%		47,647		3,294,936		67.4	%
Construction		3,670		62,626		1.3	%		2,876		58,882		1.2	%
Residential/consumer loans		758		328,228		6.8	%		1,353		345,831		7.1	%
Total real estate loans		57,762		3,700,516		76.8	%		51,876		3,699,649		75.8	%
Commercial and industrial loans		16,387		707,073		14.7	%		21,410		757,255		15.5	%
Leases receivable		14,243		409,562		8.5	%		17,140		423,264		8.7	%
Total	$	88,392	$	4,817,151		100.0	%	$	90,426	$	4,880,168		100.0	%

The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of March 31, 2021 and December 31, 2020, for which repayment is expected to be obtained through the sale of the underlying collateral.

	March 31, 2021		December 31, 2020
	Amortized Cost		Amortized Cost
	(in thousands)
Real estate loans:
Commercial property
Retail	$	6,270	$	6,330
Hospitality		8,941		20,612
Other (1)		8,137		8,410
Total commercial property loans		23,348		35,352
Construction		11,046		24,854
Residential/consumer loans		2,832		2,867
Total real estate loans		37,226		63,073
Commercial and industrial loans		—		41
Total	$	37,226	$	63,114

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

Loan Quality Indicators

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

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

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

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

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

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

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

Loans by Vintage Year and Risk Rating

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
March 31, 2021
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	248,282	$	824,943	$	499,488	$	457,893	$	333,986	$	757,814	$	40,720	$	3,163,126
Special Mention		—		6,390		18,559		11,023		1,660		38,335		260		76,227
Classified		—		—		5,510		12,572		4,665		47,562		—		70,309
Total commercial property		248,282		831,333		523,557		481,488		340,311		843,711		40,980		3,309,662
Construction
Risk Rating
Pass / Pass Watch		11,659		27,263		—		—		—		—		—		38,922
Special Mention		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		23,704		—		23,704
Total construction		11,659		27,263		—		—		—		23,704		—		62,626
Residential/consumer loans
Risk Rating
Pass / Pass-Watch		12,640		26,795		947		33,026		117,121		121,431		7,093		319,053
Special Mention		—		—		—		930		378		5,299		—		6,607
Classified		—		—		—		—		2,245		323		—		2,568
Total residential/consumer loans		12,640		26,795		947		33,956		119,744		127,053		7,093		328,228
Total real estate loans
Risk Rating
Pass / Pass-Watch		272,581		879,001		500,435		490,919		451,107		879,245		47,813		3,521,101
Special Mention		—		6,390		18,559		11,953		2,038		43,634		260		82,834
Classified		—		—		5,510		12,572		6,910		71,589		—		96,581
Total real estate loans		272,581		885,391		524,504		515,444		460,055		994,468		48,073		3,700,516
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		75,769		327,677		54,566		50,755		16,844		12,987		114,431		653,029
Special Mention		—		3,446		4,690		4,429		75		68		515		13,223
Classified		456		—		15,272		5,070		9,247		6,587		4,189		40,821
Total commercial and industrial loans		76,225		331,123		74,528		60,254		26,166		19,642		119,135		707,073
Leases receivable:
Risk Rating
Pass / Pass-Watch		34,174		107,408		148,514		79,816		24,719		4,906		—		399,537
Special Mention		—		—		—		—		—		—		—		—
Classified		—		488		5,826		2,267		595		849		—		10,025
Total leases receivable		34,174		107,896		154,340		82,083		25,314		5,755		—		409,562
Total loans receivable:
Risk Rating
Pass / Pass-Watch		382,524		1,314,086		703,515		621,490		492,670		897,138		162,244		4,573,667
Special Mention		—		9,836		23,249		16,382		2,113		43,702		775		96,057
Classified		456		488		26,608		19,909		16,752		79,025		4,189		147,427
Total loans receivable	$	382,980	$	1,324,410	$	753,372	$	657,781	$	511,535	$	1,019,865	$	167,208	$	4,817,151

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2020
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	920,876	$	513,962	$	479,221	$	343,659	$	418,361	$	459,367	$	31,283	$	3,166,729
Special Mention		13,680		2,484		8,630		1,671		14,971		11,907		—		53,343
Classified		—		3,528		7,303		4,712		21,351		37,840		130		74,864
Total commercial property		934,556		519,974		495,154		350,042		454,683		509,114		31,413		3,294,936
Construction
Risk Rating
Pass / Pass-Watch		33,415		613		—		—		—		—		—		34,028
Special Mention		—		—		—		—		—		—		—		—
Classified		—		—		—		—		24,854		—		—		24,854
Total construction		33,415		613		—		—		24,854		—		—		58,882
Residential/consumer loans
Risk Rating
Pass / Pass-Watch		27,997		962		37,123		127,987		82,124		54,003		7,353		337,549
Special Mention		—		—		930		829		537		2,782		—		5,078
Classified		—		—		—		2,259		301		644		—		3,204
Total residential/consumer loans		27,997		962		38,053		131,075		82,962		57,429		7,353		345,831
Total real estate loans
Risk Rating
Pass / Pass-Watch		982,288		515,537		516,344		471,646		500,485		513,370		38,636		3,538,306
Special Mention		13,680		2,484		9,560		2,500		15,508		14,689		—		58,421
Classified		—		3,528		7,303		6,971		46,506		38,484		130		102,922
Total real estate loans		995,968		521,549		533,207		481,117		562,499		566,543		38,766		3,699,649
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		406,486		73,159		54,110		17,834		4,464		9,910		146,722		712,685
Special Mention		6,950		4,509		4,436		1,110		31		1,074		447		18,557
Classified		—		890		5,115		9,465		4,380		1,519		4,644		26,013
Total commercial and industrial loans		413,436		78,558		63,661		28,409		8,875		12,503		151,813		757,255
Leases receivable:
Risk Rating
Pass / Pass-Watch		113,712		165,242		91,408		30,405		10,096		1,167		—		412,030
Special Mention		—		—		—		—		—		—		—		—
Classified		452		5,728		3,137		876		804		237		—		11,234
Total leases receivable		114,164		170,970		94,545		31,281		10,900		1,404		—		423,264
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,502,486		753,938		661,862		519,885		515,045		524,447		185,358		4,663,021
Special Mention		20,630		6,993		13,996		3,610		15,539		15,763		447		76,978
Classified		452		10,146		15,555		17,312		51,690		40,240		4,774		140,169
Total loans receivable	$	1,523,568	$	771,077	$	691,413	$	540,807	$	582,274	$	580,450	$	190,579	$	4,880,168

⁽¹⁾ Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Certain prior period amounts have been reclassified to conform to current period presentation.

Loans by Vintage Year and Payment Performance

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
March 31, 2021
Real estate loans:
Commercial property
Payment performance
Performing	$	248,282	$	831,333	$	523,557	$	481,467	$	337,960	$	828,069	$	40,980	$	3,291,648
Nonperforming		—		—		—		21		2,351		15,642		—		18,014
Total commercial property		248,282		831,333		523,557		481,488		340,311		843,711		40,980		3,309,662
Construction
Payment performance
Performing		11,659		27,263		—		—		—		12,658		—		51,580
Nonperforming		—		—		—		—		—		11,046		—		11,046
Total construction		11,659		27,263		—		—		—		23,704		—		62,626
Residential/consumer loans
Payment performance
Performing		12,640		26,795		947		33,956		118,347		126,730		7,093		326,508
Nonperforming		—		—		—		—		1,397		323		—		1,720
Total residential/consumer loans		12,640		26,795		947		33,956		119,744		127,053		7,093		328,228
Total real estate loans
Payment performance
Performing		272,581		885,391		524,504		515,423		456,307		967,457		48,073		3,669,736
Nonperforming		—		—		—		21		3,748		27,011		—		30,780
Total real estate loans		272,581		885,391		524,504		515,444		460,055		994,468		48,073		3,700,516
Commercial and industrial loans:
Payment performance
Performing		76,225		331,123		73,638		56,348		16,967		19,384		119,135		692,820
Nonperforming		—		—		890		3,906		9,199		258		—		14,253
Total commercial and industrial loans		76,225		331,123		74,528		60,254		26,166		19,642		119,135		707,073
Leases receivable:
Payment performance
Performing		34,174		107,408		148,515		79,816		24,719		4,906		—		399,538
Nonperforming		—		488		5,825		2,267		595		849		—		10,024
Total leases receivable		34,174		107,896		154,340		82,083		25,314		5,755		—		409,562
Total loans receivable:
Payment performance
Performing		382,980		1,323,922		746,657		651,587		497,993		991,747		167,208		4,762,094
Nonperforming		—		488		6,715		6,194		13,542		28,118		—		55,057
Total loans receivable	$	382,980	$	1,324,410	$	753,372	$	657,781	$	511,535	$	1,019,865	$	167,208	$	4,817,151

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2020
Real estate loans:
Commercial property
Payment performance
Performing	$	934,556	$	519,582	$	495,132	$	347,656	$	437,230	$	499,410	$	31,283	$	3,264,849
Nonperforming		—		392		22		2,386		17,453		9,704		130		30,087
Total commercial property		934,556		519,974		495,154		350,042		454,683		509,114		31,413		3,294,936
Construction
Payment performance
Performing		33,415		613		—		—		—		—		—		34,028
Nonperforming		—		—		—		—		24,854		—		—		24,854
Total construction		33,415		613		—		—		24,854		—		—		58,882
Residential/consumer loans
Payment performance
Performing		27,997		962		38,053		129,670		82,661		56,785		7,353		343,481
Nonperforming		—		—		—		1,405		301		644		—		2,350
Total residential/consumer loans		27,997		962		38,053		131,075		82,962		57,429		7,353		345,831
Total real estate loans
Payment performance
Performing		995,968		521,157		533,185		477,326		519,891		556,195		38,636		3,642,358
Nonperforming		—		392		22		3,791		42,608		10,348		130		57,291
Total real estate loans		995,968		521,549		533,207		481,117		562,499		566,543		38,766		3,699,649
Commercial and industrial loans:
Payment performance
Performing		413,436		77,668		59,726		19,002		8,875		12,227		151,813		742,747
Nonperforming		—		890		3,935		9,407		—		276		—		14,508
Total commercial and industrial loans		413,436		78,558		63,661		28,409		8,875		12,503		151,813		757,255
Leases receivable:
Payment performance
Performing		113,712		165,242		91,408		30,405		10,096		1,167		—		412,030
Nonperforming		452		5,728		3,137		876		804		237		—		11,234
Total leases receivable		114,164		170,970		94,545		31,281		10,900		1,404		—		423,264
Total loans receivable:
Payment performance
Performing		1,523,116		764,067		684,319		526,733		538,862		569,589		190,449		4,797,135
Nonperforming		452		7,010		7,094		14,074		43,412		10,861		130		83,033
Total loans receivable	$	1,523,568	$	771,077	$	691,413	$	540,807	$	582,274	$	580,450	$	190,579	$	4,880,168

⁽²⁾ Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Certain prior period amounts have been reclassified to conform to current period presentation.

At March 31, 2021, of the $116.4 million of loans modified in accordance with the provision of the CARES Act, $47.4 million were in pass and pass-watch, $50.8 million were special mention, and $18.2 million were classified. At December 31, 2020, of the $155.6 million of loans modified in accordance with the provision of the CARES Act, $99.9 million were in pass and pass-watch, $31.3 million were special mention, and $24.4 million were classified.

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

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(in thousands)
March 31, 2021
Real estate loans:
Commercial property
Retail	$	1,517	$	—	$	—	$	1,517	$	810,066	$	811,583	$	—
Hospitality		—		—		5,873		5,873		836,141		842,014		—
Other		162		—		877		1,039		1,655,026		1,656,065		—
Total commercial property loans		1,679		—		6,750		8,429		3,301,233		3,309,662		—
Construction		—		—		—		—		62,626		62,626		—
Residential/consumer loans		1,548		—		562		2,110		326,118		328,228		—
Total real estate loans		3,227		—		7,312		10,539		3,689,977		3,700,516		—
Commercial and industrial loans		119		890		12,905		13,914		693,159		707,073		—
Leases receivable		3,402		2,104		3,049		8,555		401,007		409,562		—
Total loans receivable	$	6,748	$	2,994	$	23,266	$	33,008	$	4,784,143	$	4,817,151	$	—
December 31, 2020
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	824,606	$	824,606	$	—
Hospitality		—		—		11,076		11,076		848,877		859,953		—
Other		—		—		731		731		1,609,646		1,610,377		—
Total commercial property loans		—		—		11,807		11,807		3,283,129		3,294,936		—
Construction		—		12,807		—		12,807		46,075		58,882		—
Residential/consumer loans		4,693		461		564		5,718		340,113		345,831		—
Total real estate loans		4,693		13,268		12,371		30,332		3,669,317		3,699,649		—
Commercial and industrial loans		282		27		12,487		12,796		744,459		757,255		—
Leases receivable		4,051		1,786		4,675		10,512		412,752		423,264		—
Total loans receivable	$	9,026	$	15,081	$	29,533	$	53,640	$	4,826,528	$	4,880,168	$	—

There were no loans that were 90 days or more past due and accruing interest as of March 31, 2021 and December 31, 2020, respectively. In addition, $31.8 million and $53.4 million of loans past due less than 90 days were classified as nonaccrual at March 31, 2021 and December 31, 2020, respectively.

At March 31, 2021 and December 31, 2020, all $116.4 million and $155.6 million, respectively, of currently modified loans under the CARES Act were classified as current. For loans previously modified under the CARES Act, $5.2 million were 30-59 days past due, $1.7 million were 60-89 days past due, and $8.0 million were 90 days or more past due at March 31, 2021, and $4.9 million were 30-59 days past due, $1.7 million were 60-89 days past due, and $13.9 million were 90 days or more past due at December 31, 2020.

Individually Evaluated Loans

The Company reviews all loans on an individual basis when they do not share similar risk characteristics with loan pools.

The following is a summary of interest foregone on nonaccrual loans for the periods indicated:

	Three Months Ended March 31,
	2021			2020
	(in thousands)
Interest income that would have been recognized had individually evaluated loans performed in accordance with their original terms	$	2,307		$	1,595
Less: Interest income recognized on individually evaluated loans		(177	)		(122	)
Interest foregone on individually evaluated loans	$	2,130		$	1,473

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

Nonaccrual Loans and Nonperforming Assets

The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of March 31, 2021 and December 31, 2020.

	March 31, 2021
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	6,270	$	—	$	—	$	6,270
Hospitality		8,941		—		—		8,941
Other		2,320		483		—		2,803
Total commercial property loans		17,531		483		—		18,014
Construction		11,046		—		—		11,046
Residential/consumer loans		1,720		—		—		1,720
Total real estate loans		30,297		483		—		30,780
Commercial and industrial loans		196		14,058		—		14,254
Leases receivable		2,742		7,282		—		10,024
Total	$	33,235	$	21,823	$	—	$	55,058
	December 31, 2020
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	6,331	$	—	$	—	$	6,331
Hospitality		20,612		—		—		20,612
Other		2,236		909		—		3,145
Total commercial property loans		29,179		909		—		30,088
Construction		24,854		—		—		24,854
Residential/consumer loans		2,350		—		—		2,350
Total real estate loans		56,383		909		—		57,292
Commercial and industrial loans		58		14,449		—		14,507
Leases receivable		2,318		8,915		—		11,233
Total	$	58,759	$	24,273	$	—	$	83,032

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

	March 31, 2021		December 31, 2020
	(in thousands)
Nonaccrual loans	$	55,058	$	83,032
Loans receivable 90 days or more past due and still accruing		—		—
Total nonperforming loans receivable		55,058		83,032
Other real estate owned ("OREO")		1,545		2,360
Total nonperforming assets	$	56,603	$	85,392

OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020.

Troubled Debt Restructurings

As of March 31, 2021 and December 31, 2020, total TDRs were $23.6 million and $25.0 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise been considered, to the borrower for economic or legal reasons related to the borrower’s financial difficulties. In addition, the concession granted must result in a reduction in the borrower’s payment for a period of three months or more in order to be classified as a TDR.

The following table details TDRs as of March 31, 2021 and December 31, 2020:

	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)
March 31, 2021
Real estate loans	$	446	$	3,130	$	11,474	$	—	$	15,050	$	1,103	$	—	$	—	$	7,260	$	8,363
Commercial and industrial loans		—		139		—		—		139		—		—		3		41		44
Total	$	446	$	3,269	$	11,474	$	—	$	15,189	$	1,103	$	—	$	3	$	7,301	$	8,407
December 31, 2020
Real estate loans	$	1,095	$	3,334	$	12,492	$	—	$	16,921	$	513	$	—	$	67	$	7,290	$	7,870
Commercial and industrial loans		—		144		—		—		144		—		—		4		56		60
Total	$	1,095	$	3,478	$	12,492	$	—	$	17,065	$	513	$	—	$	71	$	7,346	$	7,930

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

	Three Months ended						Twelve Months ended
	March 31, 2021						December 31, 2020
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(in thousands except for number of loans)
Real estate loans		—	$	—				5	$	4,479	$	3,676
Commercial and industrial loans		—		—		—		—		—		—
Total		—	$	—	$	—		5	$	4,479	$	3,676

All TDRs are individually analyzed using one of three criteria: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. At March 31, 2021 and December 31, 2020, TDRs were subjected to specific impairment analysis. We determined impairment allowances of $7,000 and $16,000, respectively, related to these loans and such allowances were included in the allowance for credit losses.

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. No loans defaulted during the three months ended March 31, 2021 following modification. During the year ended December 31, 2020, one loan for $398,000 defaulted within the twelve-month period following modification. The allowance for credit losses resulting from this defaulted loan was $3,000 for the year ended December 31, 2020.

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Servicing Assets

3 Months Ended

Mar. 31, 2021

Transfers And Servicing [Abstract]

Servicing Assets

Note 4 — Servicing Assets

The changes in servicing assets for the three months ended March 31, 2021 and 2020 were as follows:

	Three Months Ended March 31,
	2021			2020
	(in thousands)
Servicing assets:
Balance at beginning of period	$	6,212		$	6,956
Addition related to sale of SBA loans		450			354
Amortization		(512	)		(583	)
Balance at end of period	$	6,150		$	6,727

At March 31, 2021 and December 31, 2020, we serviced loans sold to unaffiliated parties in the amounts of $432.4 million and $429.4 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 serviced were SBA loans.

The Company recorded servicing fee income of $1.3 million and $1.0 million for the three months ended March 31, 2021 and March 31, 2020, respectively. Servicing fee income, net of the amortization of servicing assets, is included in other operating income in the consolidated statements of income. Amortization expense was $512,000 and $583,000 for the three months ended March 31, 2021 and March 31, 2020, respectively.

The fair value of servicing rights was $7.4 million at March 31, 2021. Fair value at March 31, 2021 was determined using discount rates ranging from 7.3 percent to 10.3 percent and prepayment speeds ranging from 11.5 percent to 18.8 percent, depending on the stratification of the specific right. The fair value of servicing rights was $6.9 million at December 31, 2020. Fair value at December 31, 2020 was determined using discount rates ranging from 9.3 percent to 12.2 percent and prepayment speeds ranging from 11.8 percent to 19.1 percent, depending on the stratification of the specific right.

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Income Taxes

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 5 — Income Taxes

The Company’s income tax expense was $7.5 million and $1.0 million representing an effective income tax rate of 31.1 percent and 30.7 percent for the three months ended March 31, 2021 and 2020, respectively.

Management concluded that as of March 31, 2021 and December 31, 2020, a valuation allowance of $4.4 million was appropriate against certain state net operating loss carry forwards and certain tax credits. For all other deferred tax assets, management believes it was more likely than not that these deferred tax assets will be realized principally through future taxable income and reversal of existing taxable temporary differences. The net deferred tax asset was $42.7 million and $41.4 million as of March 31, 2021 and December 31, 2020, respectively. The net current tax liability was $3.6 million as of March 31, 2021 and the net current tax asset was $1.0 million as of December 31, 2020.

As of March 31, 2021 the Company is subject to examination by various taxing authorities for its federal tax returns for the years ending December 31, 2017 through 2019 and state tax returns for the years ending December 31, 2016 through 2019. During the quarter ended March 31, 2021, there was no material change to the Company’s uncertain tax positions. The Company does not expect its unrecognized tax positions to change significantly over the next twelve months.

The CARES Act includes provisions for tax payment relief, significant business incentives, and certain corrections to the 2017 Tax Cuts and Jobs Act, or the Tax Act. The tax relief measures for entities includes a five-year net operating loss carry back, increases in interest expense deduction limits, accelerates alternative minimum tax credit refunds, provides payroll tax relief, and provides a technical correction to allow accelerated deductions for qualified improvement property. ASC Topic 740, Income Taxes, requires the effect of changes in tax law be recognized in the period in which new legislation is enacted. The enactment of the CARES Act was not material to the Company’s income taxes for the three months ended March 31, 2021, and is not expected to have a material impact on its financial statements for the full year ending December 31, 2021.

On December 27, 2020, the U.S. enacted the Consolidated Appropriations Act, 2021 (the “Act”) that provides additional tax relief to individuals and businesses affected by the coronavirus pandemic. We considered the provisions of the Act and determined they do not have a material impact to our overall income taxes.

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Goodwill and Other Intangibles

3 Months Ended

Mar. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Note 6 — Goodwill and other Intangibles

The third-party originators intangible of $483,000 and goodwill of $11.0 million were recorded as a result of the acquisition of a leasing portfolio in 2016. The core deposit intangible of $2.2 million was recognized for the core deposits acquired in a 2014 acquisition. The Company’s intangible assets were as follows for the periods indicated:

		March 31, 2021							December 31, 2020
	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Core deposit intangible	10 years	$	2,213	$	(1,784	)	$	429	$	2,213	$	(1,746	)	$	467
Third-party originators intangible	7 years		483		(385	)		98		483		(369	)		114
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,727	$	(2,169	)	$	11,558	$	13,727	$	(2,115	)	$	11,612

Intangible assets amortization expense for the three-month periods ended March 31, 2021 and 2020 was $54,000 and $65,000, respectively. The Company performed an impairment analysis on its goodwill and other intangible assets as of December 31, 2020 and determined there was no impairment. No triggering event has occurred subsequent to December 31, 2020 that would require a reassessment of goodwill and other intangible assets.

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Deposits

3 Months Ended

Mar. 31, 2021

Deposits [Abstract]

Deposits

Note 7 — Deposits

Time deposits at or exceeding the FDIC insurance limit of $250,000 March 31, 2021 and December 31, 2020 were $300.9 million and $311.8 million, respectively.

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

At March 31, 2021	Time Deposits of $250,000 or More		Other Time Deposits		Total
	(in thousands)
2021	$	244,254	$	619,836	$	864,090
2022		55,539		225,949		281,488
2023		806		29,134		29,940
2024		—		15,790		15,790
2025 and thereafter		264		2,440		2,704
Total	$	300,863	$	893,149	$	1,194,012
At December 31, 2020
2021	$	296,455	$	825,677	$	1,122,132
2022		14,315		115,832		130,148
2023		804		22,881		23,685
2024		—		5,382		5,382
2025 and thereafter		264		2,089		2,352
Total	$	311,838	$	971,861	$	1,283,699

Accrued interest payable on deposits was $2.4 million and $4.6 million at March 31, 2021 and December 31, 2020, respectively. Total deposits reclassified to loans due to overdrafts at March 31, 2021 and December 31, 2020 were $320,000 and $241,000, respectively.

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Borrowings and Subordinated Debentures

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Borrowings and Subordinated Debentures

Note 8 — Borrowings and Subordinated Debentures

At March 31, 2021, the Bank had no overnight advances and $150.0 million in term advances outstanding with the FHLB with a weighted average interest rate of 1.20 percent. At December 31, 2020, the Bank had no overnight advances and $150.0 million of term advances with the FHLB with a weighted average rate of 1.40 percent. The Bank had no outstanding borrowings with the Federal Reserve Bank (“FRB”) under the Paycheck Protection Program Lending Facility (“PPPLF”) as of March 31, 2021 or December 31, 2020. Interest expense on borrowings for the three months ended March 31, 2021 and 2020 was $478,000 and $496,000, respectively.

	March 31, 2021					December 31, 2020
	Outstanding Balance		Weighted Average Rate			Outstanding Balance		Weighted Average Rate
	(dollars in thousands)
Overnight advances	$	—		0.00	%	$	—		0.00	%
Advances due within 12 months		50,000		1.59	%		50,000		1.61	%
Advances due over 12 months through 24 months		50,000		1.63	%		50,000		1.62	%
Advances due over 24 months through 36 months		50,000		0.37	%		50,000		0.97	%
Outstanding advances	$	150,000		1.20	%	$	150,000		1.40	%

The following is financial data pertaining to FHLB advances:

	March 31, 2021			December 31, 2020
	(dollars in thousands)
Weighted-average interest rate at end of period		1.20	%		1.40	%
Weighted-average interest rate during the period		1.29	%		1.42	%
Average balance of FHLB advances	$	150,000		$	156,601
Maximum amount outstanding at any month-end	$	150,000		$	300,000

The Bank maintains a secured credit facility with the FHLB, allowing the Bank to borrow on an overnight and term basis. The Bank had $2.34 billion and $2.17 billion of loans pledged as collateral with the FHLB as of March 31, 2021 and December 31, 2020, respectively. Remaining available borrowing capacity was $1.39 billion, subject to the FHLB statutory lending limit of $1.57 billion, and $1.44 billion at March 31, 2021 and December 31, 2020, respectively.

The Bank also had securities with market values of $32.6 million and $27.3 million at March 31, 2021 and December 31, 2020, respectively, pledged with the FRB, which provided $31.1 million and $26.3 million in available borrowing capacity through the Fed Discount Window as of March 31, 2021 and December 31, 2020, respectively.

The Company issued Fixed-to-Floating Subordinated Notes (“Notes”) of $100.0 million on March 21, 2017, with a final maturity on March 30, 2027. The Notes have an initial fixed interest rate of 5.45 percent per annum, payable semiannually on March 30 and September 30 of each year. From and including March 30, 2022 and thereafter, the Notes bear interest at a floating rate equal to the then current three-month LIBOR, as calculated on each applicable date of determination, plus 3.315 percent payable quarterly. If the then current three-month LIBOR is less than zero, three-month LIBOR will be deemed to be zero. Debt issuance cost was $2.3 million, which is being amortized through the Note’s maturity date. At March 31, 2021 and December 31, 2020, the balance of Notes included in the Company’s Consolidated Balance Sheet, net of debt issuance cost, was $98.6 million and $98.5 million, respectively. The amortization of debt issuance cost was $53,000 and $50,000 for the three months ended March 31, 2021 and 2020, respectively.

The Company assumed Junior Subordinated Deferrable Interest Debentures (“Subordinated Debentures”) as a result of an acquisition in 2014 with an unpaid principal balance of $26.8 million and an estimated fair value of $18.5 million. The $8.3 million discount is being amortized to interest expense through the debentures’ maturity date of March 15, 2036. A trust was formed in 2005 which issued $26.0 million of Trust Preferred Securities (“TPS”) at a 6.26 percent fixed rate for the first five years and a variable rate at the three-month LIBOR plus 140 basis points thereafter and invested the proceeds in the Subordinated Debentures. The Company may redeem the Subordinated Debentures at an earlier date if certain conditions are met. The TPS will be subject to mandatory redemption if the Subordinated Debentures are repaid by the Company. Interest is payable quarterly, and the Company has the option to defer interest payments on the Subordinated Debentures from time to time for a period not to exceed five consecutive years. At March 31, 2021 and December 31, 2020, the balance of Subordinated Debentures included in the Company’s Consolidated Balance Sheets, net of discount of $6.3 million and $6.4 million, was $20.5 million and $20.4 million, respectively. The amortization of discount was $99,000 and $96,000 for the three months ended March 31, 2021 and 2020, respectively.

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Earnings per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings per Share

Note 9 — Earnings Per Share

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

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

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

	Three Months Ended March 31,
	2021		2020
Basic EPS
Net income	$	16,659	$	2,350
Less: income allocated to unvested restricted stock		100		18
Income allocated to common shares	$	16,559	$	2,332
Weighted-average shares for basic EPS		30,461,681		30,469,022
Basic EPS (1)	$	0.54	$	0.08
Effect of dilutive stock options and unvested performance restricted stock		12,289		3,877
Diluted EPS
Income allocated to common shares	$	16,559	$	2,332
Weighted-average shares for diluted EPS		30,473,970		30,472,899
Diluted EPS (1)	$	0.54	$	0.08

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

There were no anti-dilutive stock options outstanding for the three months ended March 31, 2021 or 2020, respectively.

During the three months ended March 31, 2021, the Company issued an additional 42,626 performance stock units to executive officers from the 2013 Equity Compensation plan fair valued at $784,000 on the grant date of March 24, 2021. These units have a three-year cliff vesting period and include dividend equivalent rights. Total performance stock units outstanding as of March 31, 2021 was 66,563 with an aggregate grant fair value of $1.0 million. As of March 31, 2020, there were no performance stock units outstanding.

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Regulatory Matters

3 Months Ended

Mar. 31, 2021

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Regulatory Matters

Note 10 — Regulatory Matters

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

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

At March 31, 2021, the Bank’s capital ratios exceeded the minimum requirements for the Bank to be considered “well capitalized” and the Company exceeded all of its applicable minimum regulatory capital ratio requirements.

A capital conservation buffer of 2.5 percent became effective on January 1, 2019, and must be met to avoid limitations on the ability of the Bank to pay dividends, repurchase shares or pay discretionary bonuses. The Bank's capital conservation buffer was 7.26 percent and 6.86 percent and the Company's capital conservation buffer was 6.26 percent and 5.93 percent as of March 31, 2021 and December 31, 2020, respectively.

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

The capital ratios of Hanmi Financial and the Bank as of March 31, 2021 and December 31, 2020 were as follows:

						Minimum					Minimum to Be
						Regulatory					Categorized as
	Actual					Requirement					“Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(in thousands)
March 31, 2021
Total capital (to risk-weighted assets):
Hanmi Financial	$	755,929	15.54%			$	389,082		8.00	%	N/A		N/A
Hanmi Bank	$	743,137		15.26	%	$	389,579		8.00	%	$	486,974		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	596,129	12.26%			$	291,812		6.00	%	N/A		N/A
Hanmi Bank	$	682,137	14.01%			$	292,185		6.00	%	$	389,579		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	575,601	11.84%			$	218,859		4.50	%	N/A		N/A
Hanmi Bank	$	682,137	14.01%			$	219,138		4.50	%	$	316,533		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	596,129	9.61%			$	248,215		4.00	%	N/A		N/A
Hanmi Bank	$	682,137	10.99%			$	248,219		4.00	%	$	310,274		5.00	%
December 31, 2020
Total capital (to risk-weighted assets):
Hanmi Financial	$	743,091		15.21	%	$	390,884		8.00	%	N/A		N/A
Hanmi Bank	$	726,532		14.86	%	$	391,114		8.00	%	$	488,893		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	583,076		11.93	%	$	293,163		6.00	%	N/A		N/A
Hanmi Bank	$	665,058		13.60	%	$	293,336		6.00	%	$	391,114		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	562,647		11.52	%	$	219,872		4.50	%	N/A		N/A
Hanmi Bank	$	665,058		13.60	%	$	220,002		4.50	%	$	317,780		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	583,076		9.49	%	$	245,882		4.00	%	N/A		N/A
Hanmi Bank	$	665,059		10.83	%	$	245,736		4.00	%	$	307,170		5.00	%

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Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 11 — Fair Value Measurements

Fair Value Measurements

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

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

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

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

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

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

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

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

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

Loans held for sale - Loans held for sale includes the guaranteed portion of SBA 7(a) loans and second draw PPP loans carried at the lower of cost or fair value. Management obtains quotes, bids or pricing indication sheets on all or part of the loans directly from the purchasing financial institutions. Premiums received or to be received on the quotes, bids or pricing indication

sheets are indicative of the fact that cost is lower than fair value. At March 31, 2021 and December 31, 2020, the entire balance of loans held for sale was recorded at its cost. We record loans held for sale on a nonrecurring basis with Level 2 inputs.

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

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

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

Assets and Liabilities Measured at Fair Value on a Recurring Basis

As of March 31, 2021 and December 31, 2020, assets and liabilities measured at fair value on a recurring basis are as follows:

	Level 1		Level 2		Level 3
			Significant
			Observable
	Quoted Prices in		Inputs with No
	Active Markets		Active Market		Significant
	for Identical		with Identical		Unobservable
	Assets		Characteristics		Inputs		Total Fair Value
	(in thousands)
March 31, 2021
Assets:
Securities available for sale:
U.S. Treasury securities	$	10,075	$	—	$	—	$	10,075
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		572,080		—		572,080
Collateralized mortgage obligations		—		112,743		—		112,743
Debt securities		—		85,216		—		85,216
Total U.S. government agency and sponsored agency obligations		—		770,039		—		770,039
Total securities available for sale	$	10,075	$	770,039	$	—	$	780,114
Derivative financial instruments	$	—	$	1,354	$	—	$	1,354
Liabilities:
Derivative financial instruments	$	—	$	1,265	$	—	$	1,265
December 31, 2020
Assets:
Securities available for sale:
U.S. Treasury securities	$	10,132	$	—	$	—	$	10,132
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		519,241		—		519,241
Collateralized mortgage obligations		—		133,601		—		133,601
Debt securities		—		90,807		—		90,807
Total U.S. government agency and sponsored agency obligations		—		743,649		—		743,649
Total securities available for sale	$	10,132	$	743,649	$	—	$	753,781
Derivative financial instruments	$	—	$	1,088	$	—	$	1,088
Liabilities:
Derivative financial instruments	$	—	$	1,149	$	—	$	1,149

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

As of March 31, 2021 and December 31, 2020, assets and liabilities measured at fair value on a non-recurring basis are as follows:

			Level 1		Level 2		Level 3
					Significant
					Observable
			Quoted Prices in		Inputs With No
			Active Markets		Active Market		Significant
			for Identical		With Identical		Unobservable
	Total		Assets		Characteristics		Inputs
	(in thousands)
March 31, 2021
Assets:
Collateral dependent loans (1)	$	37,226	$	—	$	—	$	37,226
Other real estate owned		1,545		—		—		1,545
Repossessed personal property		681		—		—		681
December 31, 2020
Assets:
Collateral dependent loans (2)	$	63,114	$	—	$	—	$	63,114
Other real estate owned		2,360		—		—		2,360
Repossessed personal property		857		—		—		857

⁽¹⁾ Consisted of real estate loans of $37.2 million.

(2) Consisted of real estate loans of $63.1 million and commercial and industrial loans of $41,000.

The following table represents quantitative information about Level 3 fair value comments for assets measured at fair value on a non-recurring basis at March 31, 2021 and December 31, 2020:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
March 31, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	6,270	Market approach	Market data comparison	(45)% to 35% / (22)%
Hospitality		8,941	Market approach	Market data comparison	(2)
Other		8,137	Market approach	Market data comparison	(66)% to 21% / (54)% (1)
Construction		11,046	Market approach	Market data comparison	(20)% to 10% / (10)%
Residential/consumer loans		2,832	Market approach	Market data comparison	(20)% to 9% / (15)% (1)
Total real estate loans		37,226
Total	$	37,226
Other real estate owned	$	1,545	Market approach	Market data comparison	(53)% to 15% / (23)%
Repossessed personal property		681	Market approach	Market data comparison	(3)
December 31, 2020
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	6,330	Market approach	Market data comparison	(45)% to 35% / 14%
Hospitality		20,612	Market approach	Market data comparison	(2)
Other		8,410	Market approach	Market data comparison	(55)% to 34% / 15% (1)
Construction		24,854	Market approach	Market data comparison	(20)% to 12% / (8)%
Residential/consumer loans		2,867	Market approach	Market data comparison	(13)% to 15% / 6% (1)
Total real estate loans		63,073
Commercial and industrial loans:
Commercial lines of credit		41	Market approach	Market data comparison	(9)% to 15% / 6% (1)
Total	$	63,114
Other real estate owned	$	2,360	Market approach	Market data comparison	(35)% to 15% / (14)%
Repossessed personal property		857	Market approach	Market data comparison	(3)

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

⁽²⁾ No discount weighted average range available given primary valuation methodology is via discounted cash flow analysis (DCF) for going concern properties.

⁽³⁾ The equipment is usually too low in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values.

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

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

Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825), among other provisions, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Other than certain financial instruments for which we have concluded that the carrying amounts approximate fair value, the fair value estimates shown below are based on an exit price notion as of March 31, 2021, as required by ASU 2016-01. The financial instruments for which we have concluded that the carrying amounts approximate fair value include, cash and due from banks, accrued interest receivable and payable, and noninterest-bearing deposits. The fair values of off-balance sheet items 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.

The estimated fair values of financial instruments were as follows:

	March 31, 2021
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	646,445	$	646,445	$	—	$	—
Securities available for sale		780,114		10,075		770,039		—
Loans held for sale		32,674		—		34,198		—
Loans receivable, net of allowance for credit losses		4,728,759		—		—		4,700,311
Accrued interest receivable		14,806		14,806		—		—
Financial liabilities:
Noninterest-bearing deposits		2,174,624		—		2,174,624		—
Interest-bearing deposits		3,335,199		—		—		3,335,266
Borrowings and subordinated debentures		269,124		—		151,158		115,067
Accrued interest payable		2,352		2,352		—		—

	December 31, 2020
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	391,849	$	391,849	$	—	$	—
Securities available for sale		753,781		10,132		743,649		—
Loans held for sale		8,568		—		9,270		—
Loans receivable, net of allowance for credit losses		4,789,742		—		—		4,755,302
Accrued interest receivable		16,363		16,363		—		—
Financial liabilities:
Noninterest-bearing deposits		1,898,766		—		1,898,766		—
Interest-bearing deposits		3,376,242		—		—		3,380,179
Borrowings and subordinated debentures		268,972		—		151,714		118,809
Accrued interest payable		4,564		4,564		—		—

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Off-Balance Sheet Commitments

3 Months Ended

Mar. 31, 2021

Risks And Uncertainties [Abstract]

Off-Balance Sheet Commitments

Note 12 — Off-Balance Sheet Commitments

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

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

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

	March 31,		December 31,
	2021		2020
	(in thousands)
Commitments to extend credit	$	463,841	$	453,900
Standby letters of credit		48,922		47,169
Commercial letters of credit		68,098		54,547
Total undisbursed loan commitments	$	580,861	$	555,616

The allowance for credit losses related to off-balance sheet items is maintained at a level believed to be sufficient to absorb current expected lifetime losses related to these unfunded credit facilities. The determination of the allowance adequacy 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.

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

	Three Months Ended March 31,
	2021			2020
	(in thousands)
Balance at beginning of period	$	2,792		$	2,397
Adjustment related to adoption of ASU 2016-13		—			(335	)
Adjusted balance		2,792			2,062
Provision expense (income) for credit losses		(450	)		823
Balance at end of period	$	2,342		$	2,885

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Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Note 13 — Leases

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

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

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

As of March 31, 2021, the outstanding balances for our right-of-use asset and lease liability were $49.1 million and $52.0 million, respectively. The outstanding balances of the right-of-use asset and lease liability were $52.2 million and $54.0 million, respectively, as of December 31, 2020.

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

At March 31, 2021, future minimum rental commitments under these non-cancelable operating leases, with initial or remaining terms of one year or more, were as follows:

	Amount
	(in thousands)
2021	$	7,424
2022		7,196
2023		6,881
2024		6,415
2025		5,889
Thereafter		24,057
Remaining lease commitments		57,862
Interest		(5,854	)
Present value of lease liability	$	52,008

Weighted average remaining lease terms for the Company's operating leases were 8.57 years and 8.75 years as of March 31, 2021 and December 31, 2020, respectively. Weighted average discount rates used for the Company's operating leases were 2.42 percent and 2.43 percent, respectively, as of March 31, 2021 and December 31, 2020. Net lease expense recognized for the three months ended March 31, 2021 and 2020 was $2.1 million and $2.0 million, respectively. This included operating lease costs of $2.0 million and sublease income of $33,000 for the three months ended March 31, 2021 and 2020.

Cash paid and included in cash flows from operating activities for amounts used in the measurement of the lease liability of the Company's operating leases was $2.0 million for the three months ended March 31, 2021 and 2020.

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Liquidity

3 Months Ended

Mar. 31, 2021

Liquidity [Abstract]

Liquidity

Note 14 — Liquidity

Hanmi Financial

As of March 31, 2021 and December 31, 2020, Hanmi Financial had $11.6 million and $17.3 million, respectively, in cash on deposit with its bank subsidiary. Management believes that Hanmi Financial, on a stand-alone basis, had adequate liquid assets to meet its current debt obligations.

Hanmi Bank

The principal objective of our liquidity management program is to maintain the Bank’s ability to meet the day-to-day cash flow requirements of our customers who wish either to withdraw funds or to draw upon credit facilities to meet their cash needs. Management believes that the Bank, on a stand-alone basis, has adequate liquid assets to meet its current obligations. The Bank’s primary funding source will continue to be deposits originating from its branch platform. The Bank’s wholesale funds historically consisted of FHLB advances and brokered deposits. As of March 31, 2021 and December 31, 2020, the Bank had $150.0 million of FHLB advances and $175.3 million and $193.7 million, respectively, of brokered deposits.

We monitor the sources and uses of funds on a regular basis to maintain an acceptable liquidity position. The Bank’s primary source of borrowings is the FHLB, from which the Bank is eligible to borrow up to 30.0 percent of its assets. As of March 31, 2021, the total borrowing capacity available based on pledged collateral and the remaining available borrowing capacity were $1.68 billion and $1.39 billion, respectively, compared to $1.73 billion and $1.44 billion, respectively, as of December 31, 2020.

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

As a means of augmenting its liquidity, the Bank had an available borrowing source of $31.1 million from the Federal Reserve Discount Window, to which the Bank pledged securities with a carrying value of $32.6 million, and had no borrowings as of March 31, 2021. The Bank also maintains a line of credit for repurchase agreements up to $100.0 million. The Bank also had three unsecured federal funds lines of credit totaling $115.0 million with no outstanding balances as of March 31, 2021.

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Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Note 15 — Derivatives and Hedging Activities

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

The table below presents the fair value of the Company’s derivative financial instruments as well as their location on the Balance Sheet as of March 31, 2021 and December 31, 2020.

As of March 31, 2021	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	66,759	Other Assets	$	1,354	$	66,759	Other Liabilities	$	1,265
Total derivatives not designated as hedging instruments				$	1,354				$	1,265
As of December 31, 2020	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	66,904	Other Assets	$	1,088	$	66,904	Other Liabilities	$	1,149
Total derivatives not designated as hedging instruments				$	1,088				$	1,149

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement as of March 31, 2021. There were no such instruments outstanding as of March 31, 2020.

Derivatives Not Designated as Hedging Instruments under Subtopic 815-20	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		Quarter Ended March 31, 2021
		(in thousands)
Interest rate products	Other income	$	150
Total		$	150

No fee income was recognized from the Company's derivative financial instruments for the three months ended March 31, 2021 or 2020.

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2021 and December 31, 2020. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the Consolidated Balance Sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the Consolidated Balance Sheets.

Offsetting of Derivative Assets
As of March 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
	(in thousands)
Derivatives	$	1,354	$	—	$	1,354	$	1,265	$	89	$	—
Offsetting of Derivative Liabilities
As of March 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
	(in thousands)
Derivatives	$	1,265	$	—	$	1,265	$	1,265	$	—	$	—
Offsetting of Derivative Assets
As of December 31, 2020
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
Derivatives	$	1,088	$	—	$	1,088	$	1,088	$	—	$	1,088
Offsetting of Derivative Liabilities
As of December 31, 2020
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
Derivatives	$	1,149	$	—	$	1,149	$	—	$	1,150	$	(1	)

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

As of March 31, 2021 and December 31, 2020, the fair value of derivatives in a net liability position for counterparty transactions, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $0 and $1.1 million, respectively. As of March 31, 2021, the Company had received $1.0 million of collateral from its counterparties related to these agreements and is adequately collateralized since its net asset position was $89,000 ($1.4 million fair value of assets less $1.3 million fair value of liabilities) as of March 31, 2021. As of December 31, 2020, the Company had posted $1.2 million of collateral related to these agreements and was essentially over-collateralized since its net liability position was $61,000 ($1.1 million fair value of assets less $1.1 million fair value of liabilities). If the Company had breached any of the provisions described above at March 31, 2021 or December 31, 2020, it could have been required to settle its obligations under the agreements at their termination value of $0 and $1.1 million, respectively.

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Subsequent Events

3 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 16 — Subsequent Events

At the date of issuance of this report, no subsequent events occurred that required disclosure.

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Organization and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Recently Issued Accounting Standards Not Yet Effective

Recently Issued Accounting Standards Not Yet Effective

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

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

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

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

Fair Value Measurements

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

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

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

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

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

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

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

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

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

Loans held for sale - Loans held for sale includes the guaranteed portion of SBA 7(a) loans and second draw PPP loans carried at the lower of cost or fair value. Management obtains quotes, bids or pricing indication sheets on all or part of the loans directly from the purchasing financial institutions. Premiums received or to be received on the quotes, bids or pricing indication

sheets are indicative of the fact that cost is lower than fair value. At March 31, 2021 and December 31, 2020, the entire balance of loans held for sale was recorded at its cost. We record loans held for sale on a nonrecurring basis with Level 2 inputs.

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

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

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

The following table represents quantitative information about Level 3 fair value comments for assets measured at fair value on a non-recurring basis at March 31, 2021 and December 31, 2020:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
March 31, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	6,270	Market approach	Market data comparison	(45)% to 35% / (22)%
Hospitality		8,941	Market approach	Market data comparison	(2)
Other		8,137	Market approach	Market data comparison	(66)% to 21% / (54)% (1)
Construction		11,046	Market approach	Market data comparison	(20)% to 10% / (10)%
Residential/consumer loans		2,832	Market approach	Market data comparison	(20)% to 9% / (15)% (1)
Total real estate loans		37,226
Total	$	37,226
Other real estate owned	$	1,545	Market approach	Market data comparison	(53)% to 15% / (23)%
Repossessed personal property		681	Market approach	Market data comparison	(3)
December 31, 2020
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	6,330	Market approach	Market data comparison	(45)% to 35% / 14%
Hospitality		20,612	Market approach	Market data comparison	(2)
Other		8,410	Market approach	Market data comparison	(55)% to 34% / 15% (1)
Construction		24,854	Market approach	Market data comparison	(20)% to 12% / (8)%
Residential/consumer loans		2,867	Market approach	Market data comparison	(13)% to 15% / 6% (1)
Total real estate loans		63,073
Commercial and industrial loans:
Commercial lines of credit		41	Market approach	Market data comparison	(9)% to 15% / 6% (1)
Total	$	63,114
Other real estate owned	$	2,360	Market approach	Market data comparison	(35)% to 15% / (14)%
Repossessed personal property		857	Market approach	Market data comparison	(3)

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

⁽²⁾ No discount weighted average range available given primary valuation methodology is via discounted cash flow analysis (DCF) for going concern properties.

⁽³⁾ The equipment is usually too low in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values.

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

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

Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825), among other provisions, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Other than certain financial instruments for which we have concluded that the carrying amounts approximate fair value, the fair value estimates shown below are based on an exit price notion as of March 31, 2021, as required by ASU 2016-01. The financial instruments for which we have concluded that the carrying amounts approximate fair value include, cash and due from banks, accrued interest receivable and payable, and noninterest-bearing deposits. The fair values of off-balance sheet items 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.

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Securities (Tables)

3 Months Ended

Mar. 31, 2021

Investments Debt And Equity Securities [Abstract]

Summary of Investment Securities Available for Sale

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

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
	(in thousands)
March 31, 2021
U.S. Treasury securities	$	9,998	$	77	$	—		$	10,075
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		579,209		87		(7,216	)		572,080
Collateralized mortgage obligations		112,808		145		(210	)		112,743
Debt securities		85,660		31		(475	)		85,216
Total U.S. government agency and sponsored agency obligations		777,677		263		(7,901	)		770,039
Total securities available for sale	$	787,675	$	340	$	(7,901	)	$	780,114
December 31, 2020
U.S. Treasury securities	$	9,997	$	135	$	—		$	10,132
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		515,169		4,260		(188	)		519,241
Collateralized mortgage obligations		133,632		186		(217	)		133,601
Debt securities		90,660		148		(1	)		90,807
Total U.S. government agency and sponsored agency obligations		739,461		4,594		(406	)		743,649
Total securities available for sale	$	749,458	$	4,729	$	(406	)	$	753,781

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

The amortized cost and estimated fair value of securities as of March 31, 2021 and December 31, 2020, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities.

	March 31, 2021				December 31, 2020
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	12,963	$	13,045	$	13,305	$	13,435
Over one year through five years		90,083		89,890		139,876		140,100
Over five years through ten years		50,135		49,990		25,764		25,768
Over ten years		634,494		627,189		570,513		574,478
Total	$	787,675	$	780,114	$	749,458	$	753,781

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

The following table summarizes debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2021 and December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position:

	Holding Period
	Less than 12 Months							12 Months or More						Total
	Gross			Estimated		Number		Gross		Estimated		Number		Gross			Estimated		Number
	Unrealized			Fair		of		Unrealized		Fair		of		Unrealized			Fair		of
	Loss			Value		Securities		Loss		Value		Securities		Loss			Value		Securities
	(in thousands, except number of securities)
March 31, 2021
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities	$	(7,216	)	$	562,136		87	$	—	$	—		—	$	(7,216	)	$	562,136		87
Collateralized mortgage obligations		(210	)		78,602		18		—		—		—		(210	)		78,602		18
Debt securities		(475	)		55,525		9		—		—		—		(475	)		55,525		9
Total U.S. government agency and sponsored agency obligations		(7,901	)		696,263		114		—		—		—		(7,901	)		696,263		114
Total	$	(7,901	)	$	696,263		114	$	—	$	—		—	$	(7,901	)	$	696,263		114
December 31, 2020
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities	$	(188	)	$	76,023		10	$	—	$	—		—	$	(188	)	$	76,023		10
Collateralized mortgage obligations		(217	)		97,659		21		—		—		—		(217	)		97,659		21
Debt securities		(1	)		4,999		1		—		—		—		(1	)		4,999		1
Total U.S. government agency and sponsored agency obligations		(406	)		178,681		32		—		—		—		(406	)		178,681		32
Total	$	(406	)	$	178,681		32	$	—	$	—		—	$	(406	)	$	178,681		32

Realized Gains and Losses on Sales of Investment Securities

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

	Three Months Ended March 31,
	2021		2020
	(in thousands)
Gross realized gains on sales of securities	$	99	$	—
Gross realized losses on sales of securities		—		—
Net realized gains on sales of securities	$	99	$	—
Proceeds from sales of securities	$	8,035	$	—

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Loans (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Loans

Loans consisted of the following as of the dates indicated:

	March 31, 2021			December 31, 2020
	(in thousands)
Real estate loans:
Commercial property
Retail	$	811,583		$	824,606
Hospitality		842,014			859,953
Other (1)		1,656,065			1,610,377
Total commercial property loans		3,309,662			3,294,936
Construction		62,626			58,882
Residential/consumer loans		328,228			345,831
Total real estate loans		3,700,516			3,699,649
Commercial and industrial loans		707,073			757,255
Leases receivable		409,562			423,264
Loans receivable		4,817,151			4,880,168
Allowance for credit losses		(88,392	)		(90,426	)
Loans receivable, net	$	4,728,759		$	4,789,742

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

Activity for Loans Held for Sale

The following is the activity for loans held for sale for the three months ended March 31, 2021 and 2020:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
March 31, 2021
Balance at beginning of period	$	8,042		$	526		$	8,568
Originations and transfers		16,283			130,387			146,670
Sales		(13,395	)		(109,169	)		(122,564	)
Principal paydowns and amortization		—			—			—
Balance at end of period	$	10,930		$	21,744		$	32,674
March 31, 2020
Balance at beginning of period	$	2,943		$	3,077		$	6,020
Originations		6,494			5,703			12,197
Sales		(9,432	)		(8,780	)		(18,212	)
Principal paydowns and amortization		(5	)		—			(5	)
Balance at end of period	$	—		$	—		$	—

Allowance for Credit Losses by Portfolio Segment

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

	Real Estate			Commercial and Industrial			Leases Receivable			Total
	(in thousands)
March 31, 2021
Balance at beginning of period		51,877		$	21,410		$	17,139		$	90,426
Less loans charged off		1,509			93			1,903			3,505
Recoveries on loans receivable previously charged off		(273	)		(99	)		(135	)		(507	)
Provision for credit losses		7,121			(5,029	)		(1,128	)		964
Ending balance	$	57,762		$	16,387		$	14,243		$	88,392
Individually evaluated	$	11		$	7,584		$	4,561		$	12,156
Collectively evaluated	$	57,751		$	8,803		$	9,682		$	76,236
Loans receivable	$	3,700,516		$	707,073		$	409,562		$	4,817,151
Individually evaluated	$	39,144		$	14,297		$	10,025		$	63,466
Collectively evaluated	$	3,661,372		$	692,777		$	399,537		$	4,753,686
March 31, 2020
Balance at beginning of period	$	36,435		$	16,206		$	8,767		$	61,408
Adjustment related to adoption of ASU 2016-13		14,028			(2,497	)		5,902			17,433
Adjusted balance as of January 1, 2020		50,463			13,709			14,669			78,841
Less loans charged off		14,143			12,150			1,181			27,474
Recoveries on loans receivable previously charged off		(58	)		(84	)		(74	)		(216	)
Provision for credit losses		2,754			9,945			2,218			14,917
Ending balance	$	39,132		$	11,588		$	15,780		$	66,500
Individually evaluated	$	81		$	147		$	1,671		$	1,899
Collectively evaluated	$	39,051		$	11,441		$	14,109		$	64,601
Loans receivable	$	3,578,395		$	472,714		$	492,527		$	4,543,636
Individually evaluated	$	35,459		$	5,444		$	6,393		$	47,296
Collectively evaluated	$	3,542,936		$	467,270		$	486,134		$	4,496,340

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

	March 31, 2021							December 31, 2020
	Allowance Amount		Total Loans		Percentage of Total Loans			Allowance Amount		Total Loans		Percentage of Total Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	3,962	$	811,583		16.8	%	$	4,855	$	824,606		16.9	%
Hospitality		38,251		842,014		17.5	%		28,801		859,953		17.6	%
Other		11,121		1,656,065		34.4	%		13,991		1,610,377		32.9	%
Total commercial property loans		53,334		3,309,662		68.7	%		47,647		3,294,936		67.4	%
Construction		3,670		62,626		1.3	%		2,876		58,882		1.2	%
Residential/consumer loans		758		328,228		6.8	%		1,353		345,831		7.1	%
Total real estate loans		57,762		3,700,516		76.8	%		51,876		3,699,649		75.8	%
Commercial and industrial loans		16,387		707,073		14.7	%		21,410		757,255		15.5	%
Leases receivable		14,243		409,562		8.5	%		17,140		423,264		8.7	%
Total	$	88,392	$	4,817,151		100.0	%	$	90,426	$	4,880,168		100.0	%

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

The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of March 31, 2021 and December 31, 2020, for which repayment is expected to be obtained through the sale of the underlying collateral.

	March 31, 2021		December 31, 2020
	Amortized Cost		Amortized Cost
	(in thousands)
Real estate loans:
Commercial property
Retail	$	6,270	$	6,330
Hospitality		8,941		20,612
Other (1)		8,137		8,410
Total commercial property loans		23,348		35,352
Construction		11,046		24,854
Residential/consumer loans		2,832		2,867
Total real estate loans		37,226		63,073
Commercial and industrial loans		—		41
Total	$	37,226	$	63,114

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

Credit Quality of Loan Portfolio

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
March 31, 2021
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	248,282	$	824,943	$	499,488	$	457,893	$	333,986	$	757,814	$	40,720	$	3,163,126
Special Mention		—		6,390		18,559		11,023		1,660		38,335		260		76,227
Classified		—		—		5,510		12,572		4,665		47,562		—		70,309
Total commercial property		248,282		831,333		523,557		481,488		340,311		843,711		40,980		3,309,662
Construction
Risk Rating
Pass / Pass Watch		11,659		27,263		—		—		—		—		—		38,922
Special Mention		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		23,704		—		23,704
Total construction		11,659		27,263		—		—		—		23,704		—		62,626
Residential/consumer loans
Risk Rating
Pass / Pass-Watch		12,640		26,795		947		33,026		117,121		121,431		7,093		319,053
Special Mention		—		—		—		930		378		5,299		—		6,607
Classified		—		—		—		—		2,245		323		—		2,568
Total residential/consumer loans		12,640		26,795		947		33,956		119,744		127,053		7,093		328,228
Total real estate loans
Risk Rating
Pass / Pass-Watch		272,581		879,001		500,435		490,919		451,107		879,245		47,813		3,521,101
Special Mention		—		6,390		18,559		11,953		2,038		43,634		260		82,834
Classified		—		—		5,510		12,572		6,910		71,589		—		96,581
Total real estate loans		272,581		885,391		524,504		515,444		460,055		994,468		48,073		3,700,516
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		75,769		327,677		54,566		50,755		16,844		12,987		114,431		653,029
Special Mention		—		3,446		4,690		4,429		75		68		515		13,223
Classified		456		—		15,272		5,070		9,247		6,587		4,189		40,821
Total commercial and industrial loans		76,225		331,123		74,528		60,254		26,166		19,642		119,135		707,073
Leases receivable:
Risk Rating
Pass / Pass-Watch		34,174		107,408		148,514		79,816		24,719		4,906		—		399,537
Special Mention		—		—		—		—		—		—		—		—
Classified		—		488		5,826		2,267		595		849		—		10,025
Total leases receivable		34,174		107,896		154,340		82,083		25,314		5,755		—		409,562
Total loans receivable:
Risk Rating
Pass / Pass-Watch		382,524		1,314,086		703,515		621,490		492,670		897,138		162,244		4,573,667
Special Mention		—		9,836		23,249		16,382		2,113		43,702		775		96,057
Classified		456		488		26,608		19,909		16,752		79,025		4,189		147,427
Total loans receivable	$	382,980	$	1,324,410	$	753,372	$	657,781	$	511,535	$	1,019,865	$	167,208	$	4,817,151

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2020
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	920,876	$	513,962	$	479,221	$	343,659	$	418,361	$	459,367	$	31,283	$	3,166,729
Special Mention		13,680		2,484		8,630		1,671		14,971		11,907		—		53,343
Classified		—		3,528		7,303		4,712		21,351		37,840		130		74,864
Total commercial property		934,556		519,974		495,154		350,042		454,683		509,114		31,413		3,294,936
Construction
Risk Rating
Pass / Pass-Watch		33,415		613		—		—		—		—		—		34,028
Special Mention		—		—		—		—		—		—		—		—
Classified		—		—		—		—		24,854		—		—		24,854
Total construction		33,415		613		—		—		24,854		—		—		58,882
Residential/consumer loans
Risk Rating
Pass / Pass-Watch		27,997		962		37,123		127,987		82,124		54,003		7,353		337,549
Special Mention		—		—		930		829		537		2,782		—		5,078
Classified		—		—		—		2,259		301		644		—		3,204
Total residential/consumer loans		27,997		962		38,053		131,075		82,962		57,429		7,353		345,831
Total real estate loans
Risk Rating
Pass / Pass-Watch		982,288		515,537		516,344		471,646		500,485		513,370		38,636		3,538,306
Special Mention		13,680		2,484		9,560		2,500		15,508		14,689		—		58,421
Classified		—		3,528		7,303		6,971		46,506		38,484		130		102,922
Total real estate loans		995,968		521,549		533,207		481,117		562,499		566,543		38,766		3,699,649
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		406,486		73,159		54,110		17,834		4,464		9,910		146,722		712,685
Special Mention		6,950		4,509		4,436		1,110		31		1,074		447		18,557
Classified		—		890		5,115		9,465		4,380		1,519		4,644		26,013
Total commercial and industrial loans		413,436		78,558		63,661		28,409		8,875		12,503		151,813		757,255
Leases receivable:
Risk Rating
Pass / Pass-Watch		113,712		165,242		91,408		30,405		10,096		1,167		—		412,030
Special Mention		—		—		—		—		—		—		—		—
Classified		452		5,728		3,137		876		804		237		—		11,234
Total leases receivable		114,164		170,970		94,545		31,281		10,900		1,404		—		423,264
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,502,486		753,938		661,862		519,885		515,045		524,447		185,358		4,663,021
Special Mention		20,630		6,993		13,996		3,610		15,539		15,763		447		76,978
Classified		452		10,146		15,555		17,312		51,690		40,240		4,774		140,169
Total loans receivable	$	1,523,568	$	771,077	$	691,413	$	540,807	$	582,274	$	580,450	$	190,579	$	4,880,168

⁽¹⁾ Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Certain prior period amounts have been reclassified to conform to current period presentation.

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
March 31, 2021
Real estate loans:
Commercial property
Payment performance
Performing	$	248,282	$	831,333	$	523,557	$	481,467	$	337,960	$	828,069	$	40,980	$	3,291,648
Nonperforming		—		—		—		21		2,351		15,642		—		18,014
Total commercial property		248,282		831,333		523,557		481,488		340,311		843,711		40,980		3,309,662
Construction
Payment performance
Performing		11,659		27,263		—		—		—		12,658		—		51,580
Nonperforming		—		—		—		—		—		11,046		—		11,046
Total construction		11,659		27,263		—		—		—		23,704		—		62,626
Residential/consumer loans
Payment performance
Performing		12,640		26,795		947		33,956		118,347		126,730		7,093		326,508
Nonperforming		—		—		—		—		1,397		323		—		1,720
Total residential/consumer loans		12,640		26,795		947		33,956		119,744		127,053		7,093		328,228
Total real estate loans
Payment performance
Performing		272,581		885,391		524,504		515,423		456,307		967,457		48,073		3,669,736
Nonperforming		—		—		—		21		3,748		27,011		—		30,780
Total real estate loans		272,581		885,391		524,504		515,444		460,055		994,468		48,073		3,700,516
Commercial and industrial loans:
Payment performance
Performing		76,225		331,123		73,638		56,348		16,967		19,384		119,135		692,820
Nonperforming		—		—		890		3,906		9,199		258		—		14,253
Total commercial and industrial loans		76,225		331,123		74,528		60,254		26,166		19,642		119,135		707,073
Leases receivable:
Payment performance
Performing		34,174		107,408		148,515		79,816		24,719		4,906		—		399,538
Nonperforming		—		488		5,825		2,267		595		849		—		10,024
Total leases receivable		34,174		107,896		154,340		82,083		25,314		5,755		—		409,562
Total loans receivable:
Payment performance
Performing		382,980		1,323,922		746,657		651,587		497,993		991,747		167,208		4,762,094
Nonperforming		—		488		6,715		6,194		13,542		28,118		—		55,057
Total loans receivable	$	382,980	$	1,324,410	$	753,372	$	657,781	$	511,535	$	1,019,865	$	167,208	$	4,817,151

	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2020
Real estate loans:
Commercial property
Payment performance
Performing	$	934,556	$	519,582	$	495,132	$	347,656	$	437,230	$	499,410	$	31,283	$	3,264,849
Nonperforming		—		392		22		2,386		17,453		9,704		130		30,087
Total commercial property		934,556		519,974		495,154		350,042		454,683		509,114		31,413		3,294,936
Construction
Payment performance
Performing		33,415		613		—		—		—		—		—		34,028
Nonperforming		—		—		—		—		24,854		—		—		24,854
Total construction		33,415		613		—		—		24,854		—		—		58,882
Residential/consumer loans
Payment performance
Performing		27,997		962		38,053		129,670		82,661		56,785		7,353		343,481
Nonperforming		—		—		—		1,405		301		644		—		2,350
Total residential/consumer loans		27,997		962		38,053		131,075		82,962		57,429		7,353		345,831
Total real estate loans
Payment performance
Performing		995,968		521,157		533,185		477,326		519,891		556,195		38,636		3,642,358
Nonperforming		—		392		22		3,791		42,608		10,348		130		57,291
Total real estate loans		995,968		521,549		533,207		481,117		562,499		566,543		38,766		3,699,649
Commercial and industrial loans:
Payment performance
Performing		413,436		77,668		59,726		19,002		8,875		12,227		151,813		742,747
Nonperforming		—		890		3,935		9,407		—		276		—		14,508
Total commercial and industrial loans		413,436		78,558		63,661		28,409		8,875		12,503		151,813		757,255
Leases receivable:
Payment performance
Performing		113,712		165,242		91,408		30,405		10,096		1,167		—		412,030
Nonperforming		452		5,728		3,137		876		804		237		—		11,234
Total leases receivable		114,164		170,970		94,545		31,281		10,900		1,404		—		423,264
Total loans receivable:
Payment performance
Performing		1,523,116		764,067		684,319		526,733		538,862		569,589		190,449		4,797,135
Nonperforming		452		7,010		7,094		14,074		43,412		10,861		130		83,033
Total loans receivable	$	1,523,568	$	771,077	$	691,413	$	540,807	$	582,274	$	580,450	$	190,579	$	4,880,168

⁽²⁾ Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Certain prior period amounts have been reclassified to conform to current period presentation.

Analysis of Past Due Loans, Disaggregated by Loan Class

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

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(in thousands)
March 31, 2021
Real estate loans:
Commercial property
Retail	$	1,517	$	—	$	—	$	1,517	$	810,066	$	811,583	$	—
Hospitality		—		—		5,873		5,873		836,141		842,014		—
Other		162		—		877		1,039		1,655,026		1,656,065		—
Total commercial property loans		1,679		—		6,750		8,429		3,301,233		3,309,662		—
Construction		—		—		—		—		62,626		62,626		—
Residential/consumer loans		1,548		—		562		2,110		326,118		328,228		—
Total real estate loans		3,227		—		7,312		10,539		3,689,977		3,700,516		—
Commercial and industrial loans		119		890		12,905		13,914		693,159		707,073		—
Leases receivable		3,402		2,104		3,049		8,555		401,007		409,562		—
Total loans receivable	$	6,748	$	2,994	$	23,266	$	33,008	$	4,784,143	$	4,817,151	$	—
December 31, 2020
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	824,606	$	824,606	$	—
Hospitality		—		—		11,076		11,076		848,877		859,953		—
Other		—		—		731		731		1,609,646		1,610,377		—
Total commercial property loans		—		—		11,807		11,807		3,283,129		3,294,936		—
Construction		—		12,807		—		12,807		46,075		58,882		—
Residential/consumer loans		4,693		461		564		5,718		340,113		345,831		—
Total real estate loans		4,693		13,268		12,371		30,332		3,669,317		3,699,649		—
Commercial and industrial loans		282		27		12,487		12,796		744,459		757,255		—
Leases receivable		4,051		1,786		4,675		10,512		412,752		423,264		—
Total loans receivable	$	9,026	$	15,081	$	29,533	$	53,640	$	4,826,528	$	4,880,168	$	—

Summary of Interest Foregone on Individually Evaluated Loans

The following is a summary of interest foregone on nonaccrual loans for the periods indicated:

	Three Months Ended March 31,
	2021			2020
	(in thousands)
Interest income that would have been recognized had individually evaluated loans performed in accordance with their original terms	$	2,307		$	1,595
Less: Interest income recognized on individually evaluated loans		(177	)		(122	)
Interest foregone on individually evaluated loans	$	2,130		$	1,473

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

The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of March 31, 2021 and December 31, 2020.

	March 31, 2021
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	6,270	$	—	$	—	$	6,270
Hospitality		8,941		—		—		8,941
Other		2,320		483		—		2,803
Total commercial property loans		17,531		483		—		18,014
Construction		11,046		—		—		11,046
Residential/consumer loans		1,720		—		—		1,720
Total real estate loans		30,297		483		—		30,780
Commercial and industrial loans		196		14,058		—		14,254
Leases receivable		2,742		7,282		—		10,024
Total	$	33,235	$	21,823	$	—	$	55,058
	December 31, 2020
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Commercial property
Retail	$	6,331	$	—	$	—	$	6,331
Hospitality		20,612		—		—		20,612
Other		2,236		909		—		3,145
Total commercial property loans		29,179		909		—		30,088
Construction		24,854		—		—		24,854
Residential/consumer loans		2,350		—		—		2,350
Total real estate loans		56,383		909		—		57,292
Commercial and industrial loans		58		14,449		—		14,507
Leases receivable		2,318		8,915		—		11,233
Total	$	58,759	$	24,273	$	—	$	83,032

Non-Performing Assets

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

	March 31, 2021		December 31, 2020
	(in thousands)
Nonaccrual loans	$	55,058	$	83,032
Loans receivable 90 days or more past due and still accruing		—		—
Total nonperforming loans receivable		55,058		83,032
Other real estate owned ("OREO")		1,545		2,360
Total nonperforming assets	$	56,603	$	85,392

Troubled Debt Restructurings

The following table details TDRs as of March 31, 2021 and December 31, 2020:

	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)
March 31, 2021
Real estate loans	$	446	$	3,130	$	11,474	$	—	$	15,050	$	1,103	$	—	$	—	$	7,260	$	8,363
Commercial and industrial loans		—		139		—		—		139		—		—		3		41		44
Total	$	446	$	3,269	$	11,474	$	—	$	15,189	$	1,103	$	—	$	3	$	7,301	$	8,407
December 31, 2020
Real estate loans	$	1,095	$	3,334	$	12,492	$	—	$	16,921	$	513	$	—	$	67	$	7,290	$	7,870
Commercial and industrial loans		—		144		—		—		144		—		—		4		56		60
Total	$	1,095	$	3,478	$	12,492	$	—	$	17,065	$	513	$	—	$	71	$	7,346	$	7,930

Summary of Loans by Class Modified as Troubled Debt Restructurings

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

	Three Months ended						Twelve Months ended
	March 31, 2021						December 31, 2020
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(in thousands except for number of loans)
Real estate loans		—	$	—				5	$	4,479	$	3,676
Commercial and industrial loans		—		—		—		—		—		—
Total		—	$	—	$	—		5	$	4,479	$	3,676

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Servicing Assets (Tables)

3 Months Ended

Mar. 31, 2021

Transfers And Servicing [Abstract]

Summary of Changes in Servicing Assets

The changes in servicing assets for the three months ended March 31, 2021 and 2020 were as follows:

	Three Months Ended March 31,
	2021			2020
	(in thousands)
Servicing assets:
Balance at beginning of period	$	6,212		$	6,956
Addition related to sale of SBA loans		450			354
Amortization		(512	)		(583	)
Balance at end of period	$	6,150		$	6,727

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Goodwill and Other Intangibles (Tables)

3 Months Ended

Mar. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Goodwill and Other Intangible Assets

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

		March 31, 2021							December 31, 2020
	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Core deposit intangible	10 years	$	2,213	$	(1,784	)	$	429	$	2,213	$	(1,746	)	$	467
Third-party originators intangible	7 years		483		(385	)		98		483		(369	)		114
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,727	$	(2,169	)	$	11,558	$	13,727	$	(2,115	)	$	11,612

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Deposits (Tables)

3 Months Ended

Mar. 31, 2021

Deposits [Abstract]

Scheduled Maturities of Time Deposits

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

At March 31, 2021	Time Deposits of $250,000 or More		Other Time Deposits		Total
	(in thousands)
2021	$	244,254	$	619,836	$	864,090
2022		55,539		225,949		281,488
2023		806		29,134		29,940
2024		—		15,790		15,790
2025 and thereafter		264		2,440		2,704
Total	$	300,863	$	893,149	$	1,194,012
At December 31, 2020
2021	$	296,455	$	825,677	$	1,122,132
2022		14,315		115,832		130,148
2023		804		22,881		23,685
2024		—		5,382		5,382
2025 and thereafter		264		2,089		2,352
Total	$	311,838	$	971,861	$	1,283,699

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Borrowings and Subordinated Debentures (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of Borrowings

	March 31, 2021					December 31, 2020
	Outstanding Balance		Weighted Average Rate			Outstanding Balance		Weighted Average Rate
	(dollars in thousands)
Overnight advances	$	—		0.00	%	$	—		0.00	%
Advances due within 12 months		50,000		1.59	%		50,000		1.61	%
Advances due over 12 months through 24 months		50,000		1.63	%		50,000		1.62	%
Advances due over 24 months through 36 months		50,000		0.37	%		50,000		0.97	%
Outstanding advances	$	150,000		1.20	%	$	150,000		1.40	%

Summary of Financial Data Pertaining to Federal Home Loan Bank Advances

The following is financial data pertaining to FHLB advances:

	March 31, 2021			December 31, 2020
	(dollars in thousands)
Weighted-average interest rate at end of period		1.20	%		1.40	%
Weighted-average interest rate during the period		1.29	%		1.42	%
Average balance of FHLB advances	$	150,000		$	156,601
Maximum amount outstanding at any month-end	$	150,000		$	300,000

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Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Reconciliation of Components Used to Derive Basic and Diluted EPS

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

	Three Months Ended March 31,
	2021		2020
Basic EPS
Net income	$	16,659	$	2,350
Less: income allocated to unvested restricted stock		100		18
Income allocated to common shares	$	16,559	$	2,332
Weighted-average shares for basic EPS		30,461,681		30,469,022
Basic EPS (1)	$	0.54	$	0.08
Effect of dilutive stock options and unvested performance restricted stock		12,289		3,877
Diluted EPS
Income allocated to common shares	$	16,559	$	2,332
Weighted-average shares for diluted EPS		30,473,970		30,472,899
Diluted EPS (1)	$	0.54	$	0.08

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

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Regulatory Matters (Tables)

3 Months Ended

Mar. 31, 2021

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Capital Ratios of Hanmi Financial and Bank

The capital ratios of Hanmi Financial and the Bank as of March 31, 2021 and December 31, 2020 were as follows:

						Minimum					Minimum to Be
						Regulatory					Categorized as
	Actual					Requirement					“Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(in thousands)
March 31, 2021
Total capital (to risk-weighted assets):
Hanmi Financial	$	755,929	15.54%			$	389,082		8.00	%	N/A		N/A
Hanmi Bank	$	743,137		15.26	%	$	389,579		8.00	%	$	486,974		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	596,129	12.26%			$	291,812		6.00	%	N/A		N/A
Hanmi Bank	$	682,137	14.01%			$	292,185		6.00	%	$	389,579		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	575,601	11.84%			$	218,859		4.50	%	N/A		N/A
Hanmi Bank	$	682,137	14.01%			$	219,138		4.50	%	$	316,533		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	596,129	9.61%			$	248,215		4.00	%	N/A		N/A
Hanmi Bank	$	682,137	10.99%			$	248,219		4.00	%	$	310,274		5.00	%
December 31, 2020
Total capital (to risk-weighted assets):
Hanmi Financial	$	743,091		15.21	%	$	390,884		8.00	%	N/A		N/A
Hanmi Bank	$	726,532		14.86	%	$	391,114		8.00	%	$	488,893		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	583,076		11.93	%	$	293,163		6.00	%	N/A		N/A
Hanmi Bank	$	665,058		13.60	%	$	293,336		6.00	%	$	391,114		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	562,647		11.52	%	$	219,872		4.50	%	N/A		N/A
Hanmi Bank	$	665,058		13.60	%	$	220,002		4.50	%	$	317,780		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	583,076		9.49	%	$	245,882		4.00	%	N/A		N/A
Hanmi Bank	$	665,059		10.83	%	$	245,736		4.00	%	$	307,170		5.00	%

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

As of March 31, 2021 and December 31, 2020, assets and liabilities measured at fair value on a recurring basis are as follows:

	Level 1		Level 2		Level 3
			Significant
			Observable
	Quoted Prices in		Inputs with No
	Active Markets		Active Market		Significant
	for Identical		with Identical		Unobservable
	Assets		Characteristics		Inputs		Total Fair Value
	(in thousands)
March 31, 2021
Assets:
Securities available for sale:
U.S. Treasury securities	$	10,075	$	—	$	—	$	10,075
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		572,080		—		572,080
Collateralized mortgage obligations		—		112,743		—		112,743
Debt securities		—		85,216		—		85,216
Total U.S. government agency and sponsored agency obligations		—		770,039		—		770,039
Total securities available for sale	$	10,075	$	770,039	$	—	$	780,114
Derivative financial instruments	$	—	$	1,354	$	—	$	1,354
Liabilities:
Derivative financial instruments	$	—	$	1,265	$	—	$	1,265
December 31, 2020
Assets:
Securities available for sale:
U.S. Treasury securities	$	10,132	$	—	$	—	$	10,132
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		519,241		—		519,241
Collateralized mortgage obligations		—		133,601		—		133,601
Debt securities		—		90,807		—		90,807
Total U.S. government agency and sponsored agency obligations		—		743,649		—		743,649
Total securities available for sale	$	10,132	$	743,649	$	—	$	753,781
Derivative financial instruments	$	—	$	1,088	$	—	$	1,088
Liabilities:
Derivative financial instruments	$	—	$	1,149	$	—	$	1,149

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

As of March 31, 2021 and December 31, 2020, assets and liabilities measured at fair value on a non-recurring basis are as follows:

			Level 1		Level 2		Level 3
					Significant
					Observable
			Quoted Prices in		Inputs With No
			Active Markets		Active Market		Significant
			for Identical		With Identical		Unobservable
	Total		Assets		Characteristics		Inputs
	(in thousands)
March 31, 2021
Assets:
Collateral dependent loans (1)	$	37,226	$	—	$	—	$	37,226
Other real estate owned		1,545		—		—		1,545
Repossessed personal property		681		—		—		681
December 31, 2020
Assets:
Collateral dependent loans (2)	$	63,114	$	—	$	—	$	63,114
Other real estate owned		2,360		—		—		2,360
Repossessed personal property		857		—		—		857

⁽¹⁾ Consisted of real estate loans of $37.2 million.

(2) Consisted of real estate loans of $63.1 million and commercial and industrial loans of $41,000.

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

The following table represents quantitative information about Level 3 fair value comments for assets measured at fair value on a non-recurring basis at March 31, 2021 and December 31, 2020:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
March 31, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	6,270	Market approach	Market data comparison	(45)% to 35% / (22)%
Hospitality		8,941	Market approach	Market data comparison	(2)
Other		8,137	Market approach	Market data comparison	(66)% to 21% / (54)% (1)
Construction		11,046	Market approach	Market data comparison	(20)% to 10% / (10)%
Residential/consumer loans		2,832	Market approach	Market data comparison	(20)% to 9% / (15)% (1)
Total real estate loans		37,226
Total	$	37,226
Other real estate owned	$	1,545	Market approach	Market data comparison	(53)% to 15% / (23)%
Repossessed personal property		681	Market approach	Market data comparison	(3)
December 31, 2020
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	6,330	Market approach	Market data comparison	(45)% to 35% / 14%
Hospitality		20,612	Market approach	Market data comparison	(2)
Other		8,410	Market approach	Market data comparison	(55)% to 34% / 15% (1)
Construction		24,854	Market approach	Market data comparison	(20)% to 12% / (8)%
Residential/consumer loans		2,867	Market approach	Market data comparison	(13)% to 15% / 6% (1)
Total real estate loans		63,073
Commercial and industrial loans:
Commercial lines of credit		41	Market approach	Market data comparison	(9)% to 15% / 6% (1)
Total	$	63,114
Other real estate owned	$	2,360	Market approach	Market data comparison	(35)% to 15% / (14)%
Repossessed personal property		857	Market approach	Market data comparison	(3)

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

⁽²⁾ No discount weighted average range available given primary valuation methodology is via discounted cash flow analysis (DCF) for going concern properties.

⁽³⁾ The equipment is usually too low in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values.

Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments were as follows:

	March 31, 2021
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	646,445	$	646,445	$	—	$	—
Securities available for sale		780,114		10,075		770,039		—
Loans held for sale		32,674		—		34,198		—
Loans receivable, net of allowance for credit losses		4,728,759		—		—		4,700,311
Accrued interest receivable		14,806		14,806		—		—
Financial liabilities:
Noninterest-bearing deposits		2,174,624		—		2,174,624		—
Interest-bearing deposits		3,335,199		—		—		3,335,266
Borrowings and subordinated debentures		269,124		—		151,158		115,067
Accrued interest payable		2,352		2,352		—		—

	December 31, 2020
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	391,849	$	391,849	$	—	$	—
Securities available for sale		753,781		10,132		743,649		—
Loans held for sale		8,568		—		9,270		—
Loans receivable, net of allowance for credit losses		4,789,742		—		—		4,755,302
Accrued interest receivable		16,363		16,363		—		—
Financial liabilities:
Noninterest-bearing deposits		1,898,766		—		1,898,766		—
Interest-bearing deposits		3,376,242		—		—		3,380,179
Borrowings and subordinated debentures		268,972		—		151,714		118,809
Accrued interest payable		4,564		4,564		—		—

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Off-Balance Sheet Commitments (Tables)

3 Months Ended

Mar. 31, 2021

Risks And Uncertainties [Abstract]

Distribution of Undisbursed Loan Commitments

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

	March 31,		December 31,
	2021		2020
	(in thousands)
Commitments to extend credit	$	463,841	$	453,900
Standby letters of credit		48,922		47,169
Commercial letters of credit		68,098		54,547
Total undisbursed loan commitments	$	580,861	$	555,616

Allowance for Credit Losses Related to Off-Balance Sheet Items

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

	Three Months Ended March 31,
	2021			2020
	(in thousands)
Balance at beginning of period	$	2,792		$	2,397
Adjustment related to adoption of ASU 2016-13		—			(335	)
Adjusted balance		2,792			2,062
Provision expense (income) for credit losses		(450	)		823
Balance at end of period	$	2,342		$	2,885

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Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Future Minimum Rental Commitments Under Non-cancelable Operating Leases

At March 31, 2021, future minimum rental commitments under these non-cancelable operating leases, with initial or remaining terms of one year or more, were as follows:

	Amount
	(in thousands)
2021	$	7,424
2022		7,196
2023		6,881
2024		6,415
2025		5,889
Thereafter		24,057
Remaining lease commitments		57,862
Interest		(5,854	)
Present value of lease liability	$	52,008

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

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

The table below presents the fair value of the Company’s derivative financial instruments as well as their location on the Balance Sheet as of March 31, 2021 and December 31, 2020.

As of March 31, 2021	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	66,759	Other Assets	$	1,354	$	66,759	Other Liabilities	$	1,265
Total derivatives not designated as hedging instruments				$	1,354				$	1,265
As of December 31, 2020	Derivative Assets					Derivative Liabilities
	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
	(in thousands)
Derivatives not designated as hedging instruments
Interest rate products	$	66,904	Other Assets	$	1,088	$	66,904	Other Liabilities	$	1,149
Total derivatives not designated as hedging instruments				$	1,088				$	1,149

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

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement as of March 31, 2021. There were no such instruments outstanding as of March 31, 2020.

Derivatives Not Designated as Hedging Instruments under Subtopic 815-20	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		Quarter Ended March 31, 2021
		(in thousands)
Interest rate products	Other income	$	150
Total		$	150

No fee income was recognized from the Company's derivative financial instruments for the three months ended March 31, 2021 or 2020.

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

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2021 and December 31, 2020. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the Consolidated Balance Sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the Consolidated Balance Sheets.

Offsetting of Derivative Assets
As of March 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
	(in thousands)
Derivatives	$	1,354	$	—	$	1,354	$	1,265	$	89	$	—
Offsetting of Derivative Liabilities
As of March 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
	(in thousands)
Derivatives	$	1,265	$	—	$	1,265	$	1,265	$	—	$	—
Offsetting of Derivative Assets
As of December 31, 2020
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
Derivatives	$	1,088	$	—	$	1,088	$	1,088	$	—	$	1,088
Offsetting of Derivative Liabilities
As of December 31, 2020
							Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Provided		Net Amount
Derivatives	$	1,149	$	—	$	1,149	$	—	$	1,150	$	(1	)

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Securities - Summary of Investment Securities Available for Sale (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 787,675	$ 749,458
Gross Unrealized Gain	340	4,729
Gross Unrealized Loss	(7,901)	(406)
Estimated Fair Value	780,114	753,781
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	9,998	9,997
Gross Unrealized Gain	77	135
Estimated Fair Value	10,075	10,132
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	579,209	515,169
Gross Unrealized Gain	87	4,260
Gross Unrealized Loss	(7,216)	(188)
Estimated Fair Value	572,080	519,241
Collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	112,808	133,632
Gross Unrealized Gain	145	186
Gross Unrealized Loss	(210)	(217)
Estimated Fair Value	112,743	133,601
Debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	85,660	90,660
Gross Unrealized Gain	31	148
Gross Unrealized Loss	(475)	(1)
Estimated Fair Value	85,216	90,807
Total U.S. government agency and sponsored agency obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	777,677	739,461
Gross Unrealized Gain	263	4,594
Gross Unrealized Loss	(7,901)	(406)
Estimated Fair Value	$ 770,039	$ 743,649

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Securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Investments Debt And Equity Securities [Abstract]
Available-for-Sale Within one year, Amortized Cost	$ 12,963	$ 13,305
Available-for-Sale Over one year through five years, Amortized Cost	90,083	139,876
Available-for-Sale Over five years through ten years, Amortized Cost	50,135	25,764
Available-for-Sale Over ten years, Amortized Cost	634,494	570,513
Amortized Cost	787,675	749,458
Available-for-Sale Within one year, Estimated Fair Value	13,045	13,435
Available-for-Sale Over one year through five years, Estimated Fair Value	89,890	140,100
Available-for-Sale Over five years through ten years, Estimated Fair Value	49,990	25,768
Available-for-Sale Over ten years, Estimated Fair Value	627,189	574,478
Estimated fair value	$ 780,114	$ 753,781

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Securities - Summary of Debt Securities Available for Sale in an Unrealized Loss Position for Which an Allowance for Credit Losses Has Not Been Recorded (Detail) $ in Thousands	Mar. 31, 2021 USD ($) Security	Dec. 31, 2020 USD ($) Security
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (7,901)	$ (406)
Available-for-Sale Within One Year, Estimated Fair Value	$ 696,263	$ 178,681
Available-for-Sale Within One Year, Number of Securities | Security	114	32
Available-for-Sale, Gross Unrealized Loss	$ (7,901)	$ (406)
Available-for-Sale, Estimated Fair Value	$ 696,263	$ 178,681
Available-for-Sale, Number of Securities | Security	114	32
Mortgage-backed securities
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (7,216)	$ (188)
Available-for-Sale Within One Year, Estimated Fair Value	$ 562,136	$ 76,023
Available-for-Sale Within One Year, Number of Securities | Security	87	10
Available-for-Sale, Gross Unrealized Loss	$ (7,216)	$ (188)
Available-for-Sale, Estimated Fair Value	$ 562,136	$ 76,023
Available-for-Sale, Number of Securities | Security	87	10
Collateralized mortgage obligations
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (210)	$ (217)
Available-for-Sale Within One Year, Estimated Fair Value	$ 78,602	$ 97,659
Available-for-Sale Within One Year, Number of Securities | Security	18	21
Available-for-Sale, Gross Unrealized Loss	$ (210)	$ (217)
Available-for-Sale, Estimated Fair Value	$ 78,602	$ 97,659
Available-for-Sale, Number of Securities | Security	18	21
Debt securities
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (475)	$ (1)
Available-for-Sale Within One Year, Estimated Fair Value	$ 55,525	$ 4,999
Available-for-Sale Within One Year, Number of Securities | Security	9	1
Available-for-Sale, Gross Unrealized Loss	$ (475)	$ (1)
Available-for-Sale, Estimated Fair Value	$ 55,525	$ 4,999
Available-for-Sale, Number of Securities | Security	9	1
Total U.S. government agency and sponsored agency obligations
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (7,901)	$ (406)
Available-for-Sale Within One Year, Estimated Fair Value	$ 696,263	$ 178,681
Available-for-Sale Within One Year, Number of Securities | Security	114	32
Available-for-Sale, Gross Unrealized Loss	$ (7,901)	$ (406)
Available-for-Sale, Estimated Fair Value	$ 696,263	$ 178,681
Available-for-Sale, Number of Securities | Security	114	32

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Securities - Realized Gains and Losses on Sales of Investment Securities (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Investments Debt And Equity Securities [Abstract]
Gross realized gains on sales of securities	$ 99,000
Net realized gains on sales of securities	99,000	$ 0
Proceeds from sales of securities	$ 8,035,000

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Securities - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Gain (loss) in earnings resulting from sale of securities	$ 99,000	$ 0
Available for sale securities pledged as collateral	$ 32,600,000		$ 27,300,000
Minimum | U.S. Government and its Agencies
Debt Securities, Available-for-sale [Line Items]
Holdings of securities as percentage of share holders' equity	10.00%

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Loans - Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	$ 4,817,151	$ 4,880,168
Allowance for credit losses	(88,392)	(90,426)
Loans receivable, net	4,728,759	4,789,742
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	3,700,516	3,699,649
Allowance for credit losses	(57,762)	(51,876)
Real Estate | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	811,583	824,606
Allowance for credit losses	(3,962)	(4,855)
Real Estate | Hospitality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	842,014	859,953
Allowance for credit losses	(38,251)	(28,801)
Real Estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	1,656,065	1,610,377
Real Estate | Total commercial property loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	3,309,662	3,294,936
Allowance for credit losses	(53,334)	(47,647)
Real Estate | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	62,626	58,882
Allowance for credit losses	(3,670)	(2,876)
Real Estate | Residential/Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	328,228	345,831
Allowance for credit losses	(758)	(1,353)
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	707,073	757,255
Allowance for credit losses	(16,387)	(21,410)
Leases Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	409,562	423,264
Allowance for credit losses	$ (14,243)	$ (17,140)

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Loans - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest on loans	$ 14,806,000		$ 16,363,000
PPP loans included in commercial and industrial loans	4,817,151,000		4,880,168,000
Loans pledged to secure advances	2,340,000,000		2,170,000,000
Loans held for sale, at the lower of cost or fair value	32,674,000		8,568,000	$ 6,020,000
Gains on sale of second draw PPP loans	4,125,000	$ 1,154,000
Proceeds from sale of second draw PPP loans	122,564,000	$ 18,212,000
Loans 90 days or more past due and still accruing	0		0
TDR loans receivable	$ 23,600,000		25,000,000.0
Principal and interest due	3 months
Reserves relating to loans included in allowance for credit losses	$ 7,000		16,000,000,000
Loans default payment past due period	30 days
Total recorded investment	$ 0		398,000
Allowance for credit losses resulting from defaulted loans			3,000
60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, past due less than 90 days	31,800,000		53,400,000
Pass/Pass-Watch
Accounts, Notes, Loans and Financing Receivable [Line Items]
PPP loans included in commercial and industrial loans	4,573,667,000		4,663,021,000
Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
PPP loans included in commercial and industrial loans	96,057,000		76,978,000
Classified
Accounts, Notes, Loans and Financing Receivable [Line Items]
PPP loans included in commercial and industrial loans	147,427,000		140,169,000
Payment Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act	116,400,000		155,600,000
Loans Modified under provision of CARES Act, current	116,400,000		155,600,000
Payment Protection Program | 60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans previously modified under provision of CARES Act	1,700,000		1,700,000
Payment Protection Program | 30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans previously modified under provision of CARES Act	5,200,000		4,900,000
Payment Protection Program | 90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans previously modified under provision of CARES Act	8,000,000.0		13,900,000
Payment Protection Program | Pass/Pass-Watch
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act	47,400,000		99,900,000
Payment Protection Program | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act	50,800,000		31,300,000
Payment Protection Program | Classified
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act	18,200,000		24,400,000
SBA Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at the lower of cost or fair value	10,900,000
PPP Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at the lower of cost or fair value	21,700,000
Gains on sale of second draw PPP loans	2,500,000
Proceeds from sale of second draw PPP loans	108,500,000
Accrued Interest | Payment Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
PPP loans included in commercial and industrial loans	256,500,000
Modified Loans | Payment Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act	116,400,000
Loans | Accrued Interest
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest on loans	13,600,000		15,200,000
Unpaid deferred interest receivable related to loans modified under CARES Act	5,200,000		7,500,000
Unpaid deferred interest receivable related to loans modified under CARES Act, net of valuation allowance	$ 1,200,000		$ 1,700,000

XML

Loans - Activity for Loans Held for Sale (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	$ 8,568	$ 6,020
Originations and transfers	146,670	12,197
Sales	(122,564)	(18,212)
Principal paydowns and amortization		(5)
Balance at end of period	32,674
Real Estate
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	8,042	2,943
Originations and transfers	16,283	6,494
Sales	(13,395)	(9,432)
Principal paydowns and amortization		(5)
Balance at end of period	10,930
Commercial and Industrial
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	526	3,077
Originations and transfers	130,387	5,703
Sales	(109,169)	$ (8,780)
Balance at end of period	$ 21,744

XML

Loans - Allowance for Credit Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	$ 90,426
Ending balance	88,392
Loans receivable	4,817,151		$ 4,880,168
Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	90,426	$ 61,408
Adjusted balance		78,841
Less loans charged off	3,505	27,474
Recoveries on loans receivable previously charged off	(507)	(216)
Provision for credit losses	964	14,917
Ending balance	88,392	66,500
Individually evaluated	12,156	1,899
Collectively evaluated	76,236	64,601
Loans receivable	4,817,151	4,543,636
Individually evaluated	63,466	47,296
Collectively evaluated	4,753,686	4,496,340
Non-PCI Loans and Leases | ASU 2016-13 | Adjustment Related to Adoption of ASU
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance		17,433
Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	51,876
Ending balance	57,762
Loans receivable	3,700,516		3,699,649
Real Estate | Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	51,877	36,435
Adjusted balance		50,463
Less loans charged off	1,509	14,143
Recoveries on loans receivable previously charged off	(273)	(58)
Provision for credit losses	7,121	2,754
Ending balance	57,762	39,132
Individually evaluated	11	81
Collectively evaluated	57,751	39,051
Loans receivable	3,700,516	3,578,395
Individually evaluated	39,144	35,459
Collectively evaluated	3,661,372	3,542,936
Real Estate | Non-PCI Loans and Leases | ASU 2016-13 | Adjustment Related to Adoption of ASU
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance		14,028
Commercial and Industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	21,410
Ending balance	16,387
Loans receivable	707,073		757,255
Commercial and Industrial | Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	21,410	16,206
Adjusted balance		13,709
Less loans charged off	93	12,150
Recoveries on loans receivable previously charged off	(99)	(84)
Provision for credit losses	(5,029)	9,945
Ending balance	16,387	11,588
Individually evaluated	7,584	147
Collectively evaluated	8,803	11,441
Loans receivable	707,073	472,714
Individually evaluated	14,297	5,444
Collectively evaluated	692,777	467,270
Commercial and Industrial | Non-PCI Loans and Leases | ASU 2016-13 | Adjustment Related to Adoption of ASU
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance		(2,497)
Leases Receivable
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	17,140
Ending balance	14,243
Loans receivable	409,562		$ 423,264
Leases Receivable | Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	17,139	8,767
Adjusted balance		14,669
Less loans charged off	1,903	1,181
Recoveries on loans receivable previously charged off	(135)	(74)
Provision for credit losses	(1,128)	2,218
Ending balance	14,243	15,780
Individually evaluated	4,561	1,671
Collectively evaluated	9,682	14,109
Loans receivable	409,562	492,527
Individually evaluated	10,025	6,393
Collectively evaluated	$ 399,537	486,134
Leases Receivable | Non-PCI Loans and Leases | ASU 2016-13 | Adjustment Related to Adoption of ASU
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance		$ 5,902

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Loans - Allowance for Credit Losses by Portfolio Segment as a Percentage of Recorded Total Allowance for Credit Losses and Aggregate Recorded Investment of Loans Receivable (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 88,392	$ 90,426
Total Loans	$ 4,817,151	$ 4,880,168
Percentage of Total Loans	100.00%	100.00%
Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 57,762	$ 51,876
Total Loans	$ 3,700,516	$ 3,699,649
Percentage of Total Loans	76.80%	75.80%
Real Estate | Retail
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 3,962	$ 4,855
Total Loans	$ 811,583	$ 824,606
Percentage of Total Loans	16.80%	16.90%
Real Estate | Hospitality
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 38,251	$ 28,801
Total Loans	$ 842,014	$ 859,953
Percentage of Total Loans	17.50%	17.60%
Real Estate | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 11,121	$ 13,991
Total Loans	$ 1,656,065	$ 1,610,377
Percentage of Total Loans	34.40%	32.90%
Real Estate | Total commercial property loans
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 53,334	$ 47,647
Total Loans	$ 3,309,662	$ 3,294,936
Percentage of Total Loans	68.70%	67.40%
Real Estate | Construction
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 3,670	$ 2,876
Total Loans	$ 62,626	$ 58,882
Percentage of Total Loans	1.30%	1.20%
Real Estate | Residential/Consumer Loans
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 758	$ 1,353
Total Loans	$ 328,228	$ 345,831
Percentage of Total Loans	6.80%	7.10%
Commercial and Industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 16,387	$ 21,410
Total Loans	$ 707,073	$ 757,255
Percentage of Total Loans	14.70%	15.50%
Leases Receivable
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 14,243	$ 17,140
Total Loans	$ 409,562	$ 423,264
Percentage of Total Loans	8.50%	8.70%

XML

Loans - Summary of Amortized Cost Basis of Collateral Dependent Loans By Class of Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	$ 37,226	$ 63,114
Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	37,226	63,073
Real Estate | Retail
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	6,270	6,330
Real Estate | Hospitality
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	8,941	20,612
Real Estate | Other
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	8,137	8,410
Real Estate | Total commercial property loans
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	23,348	35,352
Real Estate | Construction
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	11,046	24,854
Real Estate | Residential/Consumer Loans
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	$ 2,832	2,867
Commercial and Industrial
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost		$ 41

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Loans - Loans by Vintage Year and Risk Rating (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 382,980	$ 1,523,568
2020	1,324,410	771,077
2019	753,372	691,413
2018	657,781	540,807
2017	511,535	582,274
Prior	1,019,865	580,450
Revolving Loans Amortized Cost Basis	167,208	190,579
Loans receivable	4,817,151	4,880,168
Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	382,524	1,502,486
2020	1,314,086	753,938
2019	703,515	661,862
2018	621,490	519,885
2017	492,670	515,045
Prior	897,138	524,447
Revolving Loans Amortized Cost Basis	162,244	185,358
Loans receivable	4,573,667	4,663,021
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021		20,630
2020	9,836	6,993
2019	23,249	13,996
2018	16,382	3,610
2017	2,113	15,539
Prior	43,702	15,763
Revolving Loans Amortized Cost Basis	775	447
Loans receivable	96,057	76,978
Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2021	456	452
2020	488	10,146
2019	26,608	15,555
2018	19,909	17,312
2017	16,752	51,690
Prior	79,025	40,240
Revolving Loans Amortized Cost Basis	4,189	4,774
Loans receivable	147,427	140,169
Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2021	272,581	995,968
2020	885,391	521,549
2019	524,504	533,207
2018	515,444	481,117
2017	460,055	562,499
Prior	994,468	566,543
Revolving Loans Amortized Cost Basis	48,073	38,766
Loans receivable	3,700,516	3,699,649
Real Estate | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	272,581	982,288
2020	879,001	515,537
2019	500,435	516,344
2018	490,919	471,646
2017	451,107	500,485
Prior	879,245	513,370
Revolving Loans Amortized Cost Basis	47,813	38,636
Loans receivable	3,521,101	3,538,306
Real Estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021		13,680
2020	6,390	2,484
2019	18,559	9,560
2018	11,953	2,500
2017	2,038	15,508
Prior	43,634	14,689
Revolving Loans Amortized Cost Basis	260
Loans receivable	82,834	58,421
Real Estate | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2020		3,528
2019	5,510	7,303
2018	12,572	6,971
2017	6,910	46,506
Prior	71,589	38,484
Revolving Loans Amortized Cost Basis		130
Loans receivable	96,581	102,922
Real Estate | Total commercial property loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	248,282	934,556
2020	831,333	519,974
2019	523,557	495,154
2018	481,488	350,042
2017	340,311	454,683
Prior	843,711	509,114
Revolving Loans Amortized Cost Basis	40,980	31,413
Loans receivable	3,309,662	3,294,936
Real Estate | Total commercial property loans | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	248,282	920,876
2020	824,943	513,962
2019	499,488	479,221
2018	457,893	343,659
2017	333,986	418,361
Prior	757,814	459,367
Revolving Loans Amortized Cost Basis	40,720	31,283
Loans receivable	3,163,126	3,166,729
Real Estate | Total commercial property loans | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021		13,680
2020	6,390	2,484
2019	18,559	8,630
2018	11,023	1,671
2017	1,660	14,971
Prior	38,335	11,907
Revolving Loans Amortized Cost Basis	260
Loans receivable	76,227	53,343
Real Estate | Total commercial property loans | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2020		3,528
2019	5,510	7,303
2018	12,572	4,712
2017	4,665	21,351
Prior	47,562	37,840
Revolving Loans Amortized Cost Basis		130
Loans receivable	70,309	74,864
Real Estate | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2021	11,659	33,415
2020	27,263	613
2017		24,854
Prior	23,704
Loans receivable	62,626	58,882
Real Estate | Construction | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	11,659	33,415
2020	27,263	613
Loans receivable	38,922	34,028
Real Estate | Construction | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2017		24,854
Prior	23,704
Loans receivable	23,704	24,854
Real Estate | Residential/Consumer Loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	12,640	27,997
2020	26,795	962
2019	947	38,053
2018	33,956	131,075
2017	119,744	82,962
Prior	127,053	57,429
Revolving Loans Amortized Cost Basis	7,093	7,353
Loans receivable	328,228	345,831
Real Estate | Residential/Consumer Loans | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	12,640	27,997
2020	26,795	962
2019	947	37,123
2018	33,026	127,987
2017	117,121	82,124
Prior	121,431	54,003
Revolving Loans Amortized Cost Basis	7,093	7,353
Loans receivable	319,053	337,549
Real Estate | Residential/Consumer Loans | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2019		930
2018	930	829
2017	378	537
Prior	5,299	2,782
Loans receivable	6,607	5,078
Real Estate | Residential/Consumer Loans | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2018		2,259
2017	2,245	301
Prior	323	644
Loans receivable	2,568	3,204
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2021	76,225	413,436
2020	331,123	78,558
2019	74,528	63,661
2018	60,254	28,409
2017	26,166	8,875
Prior	19,642	12,503
Revolving Loans Amortized Cost Basis	119,135	151,813
Loans receivable	707,073	757,255
Commercial and Industrial | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	75,769	406,486
2020	327,677	73,159
2019	54,566	54,110
2018	50,755	17,834
2017	16,844	4,464
Prior	12,987	9,910
Revolving Loans Amortized Cost Basis	114,431	146,722
Loans receivable	653,029	712,685
Commercial and Industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021		6,950
2020	3,446	4,509
2019	4,690	4,436
2018	4,429	1,110
2017	75	31
Prior	68	1,074
Revolving Loans Amortized Cost Basis	515	447
Loans receivable	13,223	18,557
Commercial and Industrial | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2021	456
2020		890
2019	15,272	5,115
2018	5,070	9,465
2017	9,247	4,380
Prior	6,587	1,519
Revolving Loans Amortized Cost Basis	4,189	4,644
Loans receivable	40,821	26,013
Leases Receivable
Financing Receivable, Credit Quality Indicator [Line Items]
2021	34,174	114,164
2020	107,896	170,970
2019	154,340	94,545
2018	82,083	31,281
2017	25,314	10,900
Prior	5,755	1,404
Loans receivable	409,562	423,264
Leases Receivable | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	34,174	113,712
2020	107,408	165,242
2019	148,514	91,408
2018	79,816	30,405
2017	24,719	10,096
Prior	4,906	1,167
Loans receivable	399,537	412,030
Leases Receivable | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2021		452
2020	488	5,728
2019	5,826	3,137
2018	2,267	876
2017	595	804
Prior	849	237
Loans receivable	$ 10,025	$ 11,234

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Loans - Loans by Vintage Year and Payment Performance (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 382,980	$ 1,523,568
2020	1,324,410	771,077
2019	753,372	691,413
2018	657,781	540,807
2017	511,535	582,274
Prior	1,019,865	580,450
Revolving Loans Amortized Cost Basis	167,208	190,579
Loans receivable	4,817,151	4,880,168
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	382,980	1,523,116
2020	1,323,922	764,067
2019	746,657	684,319
2018	651,587	526,733
2017	497,993	538,862
Prior	991,747	569,589
Revolving Loans Amortized Cost Basis	167,208	190,449
Loans receivable	4,762,094	4,797,135
Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2021		452
2020	488	7,010
2019	6,715	7,094
2018	6,194	14,074
2017	13,542	43,412
Prior	28,118	10,861
Revolving Loans Amortized Cost Basis		130
Loans receivable	55,057	83,033
Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2021	272,581	995,968
2020	885,391	521,549
2019	524,504	533,207
2018	515,444	481,117
2017	460,055	562,499
Prior	994,468	566,543
Revolving Loans Amortized Cost Basis	48,073	38,766
Loans receivable	3,700,516	3,699,649
Real Estate | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	272,581	995,968
2020	885,391	521,157
2019	524,504	533,185
2018	515,423	477,326
2017	456,307	519,891
Prior	967,457	556,195
Revolving Loans Amortized Cost Basis	48,073	38,636
Loans receivable	3,669,736	3,642,358
Real Estate | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2020		392
2019		22
2018	21	3,791
2017	3,748	42,608
Prior	27,011	10,348
Revolving Loans Amortized Cost Basis		130
Loans receivable	30,780	57,291
Real Estate | Total commercial property loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	248,282	934,556
2020	831,333	519,974
2019	523,557	495,154
2018	481,488	350,042
2017	340,311	454,683
Prior	843,711	509,114
Revolving Loans Amortized Cost Basis	40,980	31,413
Loans receivable	3,309,662	3,294,936
Real Estate | Total commercial property loans | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	248,282	934,556
2020	831,333	519,582
2019	523,557	495,132
2018	481,467	347,656
2017	337,960	437,230
Prior	828,069	499,410
Revolving Loans Amortized Cost Basis	40,980	31,283
Loans receivable	3,291,648	3,264,849
Real Estate | Total commercial property loans | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2020		392
2019		22
2018	21	2,386
2017	2,351	17,453
Prior	15,642	9,704
Revolving Loans Amortized Cost Basis		130
Loans receivable	18,014	30,087
Real Estate | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2021	11,659	33,415
2020	27,263	613
2017		24,854
Prior	23,704
Loans receivable	62,626	58,882
Real Estate | Construction | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	11,659	33,415
2020	27,263	613
Prior	12,658
Loans receivable	51,580	34,028
Real Estate | Construction | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2017		24,854
Prior	11,046
Loans receivable	11,046	24,854
Real Estate | Residential/Consumer Loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	12,640	27,997
2020	26,795	962
2019	947	38,053
2018	33,956	131,075
2017	119,744	82,962
Prior	127,053	57,429
Revolving Loans Amortized Cost Basis	7,093	7,353
Loans receivable	328,228	345,831
Real Estate | Residential/Consumer Loans | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	12,640	27,997
2020	26,795	962
2019	947	38,053
2018	33,956	129,670
2017	118,347	82,661
Prior	126,730	56,785
Revolving Loans Amortized Cost Basis	7,093	7,353
Loans receivable	326,508	343,481
Real Estate | Residential/Consumer Loans | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2018		1,405
2017	1,397	301
Prior	323	644
Loans receivable	1,720	2,350
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2021	76,225	413,436
2020	331,123	78,558
2019	74,528	63,661
2018	60,254	28,409
2017	26,166	8,875
Prior	19,642	12,503
Revolving Loans Amortized Cost Basis	119,135	151,813
Loans receivable	707,073	757,255
Commercial and Industrial | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	76,225	413,436
2020	331,123	77,668
2019	73,638	59,726
2018	56,348	19,002
2017	16,967	8,875
Prior	19,384	12,227
Revolving Loans Amortized Cost Basis	119,135	151,813
Loans receivable	692,820	742,747
Commercial and Industrial | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2020		890
2019	890	3,935
2018	3,906	9,407
2017	9,199
Prior	258	276
Loans receivable	14,253	14,508
Leases Receivable
Financing Receivable, Credit Quality Indicator [Line Items]
2021	34,174	114,164
2020	107,896	170,970
2019	154,340	94,545
2018	82,083	31,281
2017	25,314	10,900
Prior	5,755	1,404
Loans receivable	409,562	423,264
Leases Receivable | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	34,174	113,712
2020	107,408	165,242
2019	148,515	91,408
2018	79,816	30,405
2017	24,719	10,096
Prior	4,906	1,167
Loans receivable	399,538	412,030
Leases Receivable | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2021		452
2020	488	5,728
2019	5,825	3,137
2018	2,267	876
2017	595	804
Prior	849	237
Loans receivable	$ 10,024	$ 11,234

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Loans - Analysis of Past Due Loans, Disaggregated by Loan Class, Non-PCI (Detail) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Past due loans receivable	$ 33,008,000	$ 53,640,000
Current	4,784,143,000	4,826,528,000
Loans receivable	4,817,151,000	4,880,168,000
Accruing 90 days or more past due loans receivable	0	0
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	6,748,000	9,026,000
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	2,994,000	15,081,000
90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	23,266,000	29,533,000
Real Estate
Financing Receivable, Past Due [Line Items]
Past due loans receivable	10,539,000	30,332,000
Current	3,689,977,000	3,669,317,000
Loans receivable	3,700,516,000	3,699,649,000
Real Estate | Retail
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,517,000
Current	810,066,000	824,606,000
Loans receivable	811,583,000	824,606,000
Real Estate | Hospitality
Financing Receivable, Past Due [Line Items]
Past due loans receivable	5,873,000	11,076,000
Current	836,141,000	848,877,000
Loans receivable	842,014,000	859,953,000
Real Estate | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,039,000	731,000
Current	1,655,026,000	1,609,646,000
Loans receivable	1,656,065,000	1,610,377,000
Real Estate | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	8,429,000	11,807,000
Current	3,301,233,000	3,283,129,000
Loans receivable	3,309,662,000	3,294,936,000
Real Estate | Construction
Financing Receivable, Past Due [Line Items]
Past due loans receivable		12,807,000
Current	62,626,000	46,075,000
Loans receivable	62,626,000	58,882,000
Real Estate | Residential/Consumer Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	2,110,000	5,718,000
Current	326,118,000	340,113,000
Loans receivable	328,228,000	345,831,000
Real Estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,227,000	4,693,000
Real Estate | 30-59 Days Past Due | Retail
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,517,000
Real Estate | 30-59 Days Past Due | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	162,000
Real Estate | 30-59 Days Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,679,000
Real Estate | 30-59 Days Past Due | Residential/Consumer Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,548,000	4,693,000
Real Estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable		13,268,000
Real Estate | 60-89 Days Past Due | Construction
Financing Receivable, Past Due [Line Items]
Past due loans receivable		12,807,000
Real Estate | 60-89 Days Past Due | Residential/Consumer Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable		461,000
Real Estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	7,312,000	12,371,000
Real Estate | 90 Days or More Past Due | Hospitality
Financing Receivable, Past Due [Line Items]
Past due loans receivable	5,873,000	11,076,000
Real Estate | 90 Days or More Past Due | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	877,000	731,000
Real Estate | 90 Days or More Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	6,750,000	11,807,000
Real Estate | 90 Days or More Past Due | Residential/Consumer Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	562,000	564,000
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Past due loans receivable	13,914,000	12,796,000
Current	693,159,000	744,459,000
Loans receivable	707,073,000	757,255,000
Commercial and Industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	119,000	282,000
Commercial and Industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	890,000	27,000
Commercial and Industrial | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	12,905,000	12,487,000
Leases Receivable
Financing Receivable, Past Due [Line Items]
Past due loans receivable	8,555,000	10,512,000
Current	401,007,000	412,752,000
Loans receivable	409,562,000	423,264,000
Leases Receivable | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,402,000	4,051,000
Leases Receivable | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	2,104,000	1,786,000
Leases Receivable | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	$ 3,049,000	$ 4,675,000

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Loans - Summary of Interest Foregone on Non-accrual Loans (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Receivables [Abstract]
Interest income that would have been recognized had individually evaluated loans performed in accordance with their original terms	$ 2,307	$ 1,595
Less: Interest income recognized on individually evaluated loans	(177)	(122)
Interest foregone on individually evaluated loans	$ 2,130	$ 1,473

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Loans - Schedule of Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due 90 Days and Still Accruing (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	$ 33,235	$ 58,759
Nonaccrual Loans With Allowance for Credit Losses	21,823	24,273
Total Nonperforming Loans	55,058	83,032
Real Estate
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	30,297	56,383
Nonaccrual Loans With Allowance for Credit Losses	483	909
Total Nonperforming Loans	30,780	57,292
Real Estate | Retail
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	6,270	6,331
Total Nonperforming Loans	6,270	6,331
Real Estate | Hospitality
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	8,941	20,612
Total Nonperforming Loans	8,941	20,612
Real Estate | Other
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	2,320	2,236
Nonaccrual Loans With Allowance for Credit Losses	483	909
Total Nonperforming Loans	2,803	3,145
Real Estate | Total commercial property loans
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	17,531	29,179
Nonaccrual Loans With Allowance for Credit Losses	483	909
Total Nonperforming Loans	18,014	30,088
Real Estate | Construction
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	11,046	24,854
Total Nonperforming Loans	11,046	24,854
Real Estate | Residential/Consumer Loans
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	1,720	2,350
Total Nonperforming Loans	1,720	2,350
Commercial and Industrial
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	196	58
Nonaccrual Loans With Allowance for Credit Losses	14,058	14,449
Total Nonperforming Loans	14,254	14,507
Leases Receivable
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	2,742	2,318
Nonaccrual Loans With Allowance for Credit Losses	7,282	8,915
Total Nonperforming Loans	$ 10,024	$ 11,233

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Loans - Non-Performing Assets (Detail) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Nonaccrual loans	$ 55,058,000	$ 83,032,000
Loans receivable 90 days or more past due and still accruing	0	0
Total Nonperforming Loans	55,058,000	83,032,000
Other real estate owned ("OREO")	1,545,000	2,360,000
Total nonperforming assets	$ 56,603,000	$ 85,392,000

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Loans - Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Nonaccrual TDRs
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	$ 15,189	$ 17,065
Nonaccrual TDRs | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	15,050	16,921
Nonaccrual TDRs | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	139	144
Nonaccrual TDRs | Deferral of Principal
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	446	1,095
Nonaccrual TDRs | Deferral of Principal | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	446	1,095
Nonaccrual TDRs | Deferral of Principal and Interest
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	3,269	3,478
Nonaccrual TDRs | Deferral of Principal and Interest | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	3,130	3,334
Nonaccrual TDRs | Deferral of Principal and Interest | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	139	144
Nonaccrual TDRs | Reduction of Principal and Interest
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	11,474	12,492
Nonaccrual TDRs | Reduction of Principal and Interest | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	11,474	12,492
Accrual TDRs
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	8,407	7,930
Accrual TDRs | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	8,363	7,870
Accrual TDRs | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	44	60
Accrual TDRs | Deferral of Principal
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	1,103	513
Accrual TDRs | Deferral of Principal | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	1,103	513
Accrual TDRs | Reduction of Principal and Interest
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	3	71
Accrual TDRs | Reduction of Principal and Interest | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend		67
Accrual TDRs | Reduction of Principal and Interest | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	3	4
Accrual TDRs | Extension of Maturity
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	7,301	7,346
Accrual TDRs | Extension of Maturity | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	7,260	7,290
Accrual TDRs | Extension of Maturity | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	$ 41	$ 56

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Loans - Summary of Loans by Class Modified as Troubled Debt Restructurings (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) Loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | Loan	5
Pre- Modification Outstanding Recorded Investment	$ 4,479
Post- Modification Outstanding Recorded Investment	$ 3,676
Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | Loan	5
Pre- Modification Outstanding Recorded Investment	$ 4,479
Post- Modification Outstanding Recorded Investment	$ 3,676

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Servicing Assets - Summary of Changes in Servicing Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Transfers And Servicing [Abstract]
Balance at beginning of period	$ 6,212	$ 6,956
Addition related to sale of SBA loans	450	354
Amortization	(512)	(583)
Balance at end of period	$ 6,150	$ 6,727

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Servicing Assets - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Serviced loans sold to unaffiliated parties	$ 432,400,000		$ 429,400,000
Amortization expense	512,000	$ 583,000
Fair value of servicing rights	$ 7,400,000		$ 6,900,000
Minimum
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Discount rates ranging	7.30%		9.30%
Prepayment speeds	11.50%		11.80%
Maximum [Member]
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Discount rates ranging	10.30%		12.20%
Prepayment speeds	18.80%		19.10%
Other Operating Income
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Servicing fee income	$ 1,300,000	$ 1,000,000.0

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Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Provision (benefit) for income taxes for continuing operations	$ 7,506,000	$ 1,041,000
Effective income tax rate	31.10%	30.70%
Valuation allowance	$ 4,400,000		$ 4,400,000
Net deferred tax asset	42,700,000		41,400,000
Net current tax liability	3,600,000
Net current tax asset			$ 1,000,000.0
Change in uncertain tax positions	$ 0
CARES Act
Operating Loss Carryforwards [Line Items]
Net operating loss carryback period	5 years

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Goodwill and Other Intangibles - Additional Information (Detail) - USD ($)			3 Months Ended		12 Months Ended
	Oct. 27, 2016	Aug. 31, 2014	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization expense			$ 54,000	$ 65,000
Impairment of goodwill and other intangible assets					$ 0
Goodwill and other intangible assets triggering event			No triggering event has occurred subsequent to December 31, 2020 that would require a reassessment of goodwill and other intangible assets.
CBI Merger
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 11,000,000.0
CBI Merger | Third-party originators intangible
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 483,000
CBI Merger | Core deposit intangible
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 2,200,000

XML

Goodwill and Other Intangibles - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (2,169)	$ (2,115)
Goodwill	11,031	11,031
Gross carrying amount	13,727	13,727
Net carrying amount	$ 11,558	11,612
Core deposit intangible
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period	10 years
Gross carrying amount, excluding goodwill	$ 2,213	2,213
Accumulated amortization	(1,784)	(1,746)
Net carrying amount, excluding goodwill	$ 429	467
Third-party originators intangible
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period	7 years
Gross carrying amount, excluding goodwill	$ 483	483
Accumulated amortization	(385)	(369)
Net carrying amount, excluding goodwill	$ 98	$ 114

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Deposits - Additional Information (Detail) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Time Deposits	$ 1,194,012,000	$ 1,283,699,000
Accrued interest payable on deposits	2,400,000	4,600,000
Total deposits reclassified to loans due to overdrafts	320,000	241,000
Time Deposits of $250,000 or More
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Time Deposits	$ 300,863,000	$ 311,838,000

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Deposits - Scheduled Maturities of Time Deposits (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Restricted Cash And Cash Equivalents Items [Line Items]
2021	$ 864,090
2022	281,488	$ 1,122,132
2023	29,940	130,148
2024	15,790	23,685
2024		5,382
2025 and thereafter	2,704
2025 and thereafter		2,352
Total	1,194,012	1,283,699
Time Deposits of $250,000 or More
Restricted Cash And Cash Equivalents Items [Line Items]
2021	244,254
2022	55,539	296,455
2023	806	14,315
2024		804
2025 and thereafter	264
2025 and thereafter		264
Total	300,863	311,838
Other Time Deposits
Restricted Cash And Cash Equivalents Items [Line Items]
2021	619,836
2022	225,949	825,677
2023	29,134	115,832
2024	15,790	22,881
2024		5,382
2025 and thereafter	2,440
2025 and thereafter		2,089
Total	$ 893,149	$ 971,861

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Borrowings and Subordinated Debentures - Additional Information (Detail) - USD ($)		1 Months Ended	3 Months Ended
	Mar. 21, 2017	Dec. 31, 2005	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2014
Debt Instrument [Line Items]
Overnight advances from federal home loan banks			$ 0		$ 0
Advances from the FHLB			$ 150,000,000.0		$ 150,000,000.0
Weighted average interest rate of outstanding advances (percent)			1.20%		1.40%
Interest expense on borrowings			$ 478,000	$ 496,000
Borrowing			0		$ 0
Pledged loans receivable, carrying value			2,340,000,000		2,170,000,000
Remaining available borrowing capacity			1,390,000,000
FHLB statutory lending limit			1,570,000,000		1,440,000,000
Loans pledged with FRB			32,600,000		27,300,000
Borrowing capacity through Fed Discount Window			31,100,000		26,300,000
Subordinated debentures issued			126,800,000		126,800,000
Debt instrument, maturity date	Mar. 30, 2027
Subordinated debentures
Debt Instrument [Line Items]
Subordinated debentures issued	$ 100,000,000.0
Fixed interest rate	5.45%
Debt issuance costs	$ 2,300,000
Debt outstanding, net of issuance cost			98,600,000		98,500,000
Amortization of debt issuance costs			$ 53,000	50,000
Subordinated debentures | Central Bancorp, Inc
Debt Instrument [Line Items]
Subordinated debentures issued		$ 26,000,000.0
Debt instrument, maturity date			Mar. 15, 2036
Fixed interest rate		6.26%
Debt outstanding, net of issuance cost			$ 20,500,000		20,400,000
Unpaid principal balance						$ 26,800,000
Estimated fair value						18,500,000
Debt instrument discount			$ 6,300,000		$ 6,400,000	$ 8,300,000
Frequency of interest payment			quarterly
Term for the initial fixed interest rate			5 years
Optional interest payment deferral period (not to exceed)			5 years
Variable interest rate basis			three-month LIBOR plus 140 basis points
Amortization of subordinated debentures			$ 99,000	$ 96,000
3-month London Interbank Offered Rate (LIBOR) | Subordinated debentures
Debt Instrument [Line Items]
Basis spread	3.315%
3-month London Interbank Offered Rate (LIBOR) | Subordinated debentures | Central Bancorp, Inc
Debt Instrument [Line Items]
Basis spread		140.00%

XML

Borrowings and Subordinated Debentures - Schedule of Borrowings (Detail) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Outstanding Balance
Overnight advances	$ 0	$ 0
Outstanding advances	$ 150,000,000.0	$ 150,000,000.0
Weighted Average Rate
Outstanding advances (percent)	1.20%	1.40%
FHLB of San Francisco
Outstanding Balance
Advances due within 12 months	$ 50,000,000	$ 50,000,000
Advances due over 12 months through 24 months	50,000,000	50,000,000
Advances due over 24 months through 36 months	50,000,000	50,000,000
Outstanding advances	$ 150,000,000	$ 150,000,000
Weighted Average Rate
Overnight advances (percent)	0.00%	0.00%
Advances due within 12 months (percent)	1.59%	1.61%
Advances due over 12 months through 24 months (percent)	1.63%	1.62%
Advances due over 24 months through 36 months (percent)	0.37%	0.97%
Outstanding advances (percent)	1.20%	1.40%

XML

Borrowings and Subordinated Debentures - Summary of Financial Data Pertaining to Federal Home Loan Bank Advances (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Federal Home Loan Banks [Abstract]
Weighted-average interest rate at end of period	1.20%	1.40%
Weighted-average interest rate during the period	1.29%	1.42%
Average balance of FHLB advances	$ 150,000,000	$ 156,601,000
Maximum amount outstanding at any month-end	$ 150,000,000	$ 300,000,000

XML

Earnings per Share - Reconciliation of Components Used to Derive Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share [Abstract]
Net income	$ 16,659	$ 2,350
Less: income allocated to unvested restricted stock	100	18
Income allocated to common shares	$ 16,559	$ 2,332
Weighted-average shares for basic EPS	30,461,681	30,469,022
Basic EPS	$ 0.54	$ 0.08
Effect of dilutive stock options and unvested performance restricted stock	12,289	3,877
Income allocated to common shares	$ 16,559	$ 2,332
Weighted-average shares for diluted EPS	30,473,970	30,472,899
Diluted EPS	$ 0.54	$ 0.08

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Earnings per Share - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
2013 Equity Compensation Plan | Performance Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based compensation arrangement by share-based payment award, additional shares issued	42,626
Total fair value of vested shares	$ 784,000
Share based compensation arrangement by share based payment award equity instruments other than options, grant date	Mar. 24, 2021
Stock options, expiration term from date of grant	3 years
Share-based compensation arrangement by share based payment award, performance stock units outstanding	66,563	0
Share-based compensation arrangement by share based payment award, performance stock units aggregate grant fair value	$ 1,000
Stock option awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted EPS (shares)	0	0

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Regulatory Matters - Additional Information (Detail)	Mar. 31, 2021	Dec. 31, 2020	Jan. 01, 2019
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Minimum ratio of qualifying total capital to risk-weighted assets	8.0
Minimum ratio of Tier 1 capital to risk-weighted assets	6.0
Leverage ratio	4.0
Minimum ratio of qualifying total capital to risk-weighted assets for well capitalized	10.0
Minimum ratio of Tier 1 capital to average assets for well capitalized	8.0
Capital conservation buffer (percent)	6.26%	5.93%	2.50%
Hanmi Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Minimum ratio of qualifying total capital to risk-weighted assets	8.00	8.00
Minimum ratio of Tier 1 capital to risk-weighted assets	6.00	6.00
Leverage ratio	4.00	4.00
Minimum ratio of qualifying total capital to risk-weighted assets for well capitalized	10.00	10.00
Minimum ratio of Tier 1 capital to average assets for well capitalized	8.00	8.00
Capital conservation buffer (percent)	7.26%	6.86%
Depository Institutions
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage ratio	5.0

XML

Regulatory Matters - Capital Ratios of Hanmi Financial and Bank (Detail) $ in Thousands	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	8.0
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	6.0
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets	4.0
Minimum to Be Categorized as Well Capitalized Ratio, Total capital to risk-weighted assets	10.0
Minimum to Be Categorized as Well Capitalized Ratio, Tier 1 capital to risk-weighted assets	8.0
Hanmi Financial
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Actual Capital, Total capital to risk-weighted assets	$ 755,929	$ 743,091
Actual Capital, Tier 1 capital to risk-weighted assets	596,129	583,076
Actual Capital, Common equity Tier 1 capital to risk-weighted assets	575,601	562,647
Actual Capital, Tier 1 capital to average assets	$ 596,129	$ 583,076
Actual Capital Ratio, Total capital to risk-weighted assets	15.54	15.21
Actual Capital Ratio, Tier 1 capital to risk-weighted assets	12.26	11.93
Actual Capital Ratio, Common equity Tier 1 capital to risk-weighted assets	11.84	11.52
Actual Capital Ratio, Tier 1 capital to average assets	9.61	9.49
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets	$ 389,082	$ 390,884
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets	291,812	293,163
Minimum Regulatory Requirement Capital, Common equity Tier 1 capital to risk-weighted assets	218,859	219,872
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets	$ 248,215	$ 245,882
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	8.00	8.00
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	6.00	6.00
Minimum Regulatory Requirement Ratio for Common equity Tier 1 capital to risk-weighted assets	4.50%	4.50%
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets	4.00	4.00
Hanmi Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Actual Capital, Total capital to risk-weighted assets	$ 743,137	$ 726,532
Actual Capital, Tier 1 capital to risk-weighted assets	682,137	665,058
Actual Capital, Common equity Tier 1 capital to risk-weighted assets	682,137	665,058
Actual Capital, Tier 1 capital to average assets	$ 682,137	$ 665,059
Actual Capital Ratio, Total capital to risk-weighted assets	15.26	14.86
Actual Capital Ratio, Tier 1 capital to risk-weighted assets	14.01	13.60
Actual Capital Ratio, Common equity Tier 1 capital to risk-weighted assets	14.01	13.60
Actual Capital Ratio, Tier 1 capital to average assets	10.99	10.83
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets	$ 389,579	$ 391,114
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets	292,185	293,336
Minimum Regulatory Requirement Capital, Common equity Tier 1 capital to risk-weighted assets	219,138	220,002
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets	$ 248,219	$ 245,736
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets	8.00	8.00
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets	6.00	6.00
Minimum Regulatory Requirement Ratio for Common equity Tier 1 capital to risk-weighted assets	4.50%	4.50%
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets	4.00	4.00
Minimum to Be Categorized as Well Capitalized Capital, Total capital to risk-weighted assets	$ 486,974	$ 488,893
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to risk-weighted assets	389,579	391,114
Minimum to Be Categorized as Well Capitalized Capital, Common equity Tier 1 capital to risk-weighted average	316,533	317,780
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to average assets	$ 310,274	$ 307,170
Minimum to Be Categorized as Well Capitalized Ratio, Total capital to risk-weighted assets	10.00	10.00
Minimum to Be Categorized as Well Capitalized Ratio, Tier 1 capital to risk-weighted assets	8.00	8.00
Minimum to Be Categorized as Well Capitalized Ratio, Common equity Tier 1 capital to risk-weighted assets	6.50%	6.50%
Minimum to Be Categorized as Well Capitalized Ratio, Tier 1 capital to average assets	5.00	5.00

XML

Fair Value Measurements - Additional Information (Detail)	Mar. 31, 2021 USD ($)
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unpaid principal balance of Non-accrual Non-PCI loans individually evaluated for amount of impairment	$ 250,000
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unpaid principal balance of Non-accrual Non-PCI loans and leases reviewed collectively	$ 250,000

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 780,114	$ 753,781
Derivative financial instruments, Assets	1,300	1,100
Derivative financial instruments, Liabilities	1,400	1,100
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	10,075	10,132
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	572,080	519,241
Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	112,743	133,601
Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	85,216	90,807
Total U.S. government agency and sponsored agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	770,039	743,649
Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	780,114	753,781
Recurring Basis | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	10,075	10,132
Recurring Basis | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	572,080	519,241
Recurring Basis | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	112,743	133,601
Recurring Basis | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	85,216	90,807
Recurring Basis | Total U.S. government agency and sponsored agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	770,039	743,649
Recurring Basis | Derivative financial instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments, Assets	1,354	1,088
Derivative financial instruments, Liabilities	1,265	1,149
Recurring Basis | Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	10,075	10,132
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	10,075	10,132
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Total U.S. government agency and sponsored agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Derivative financial instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments, Assets	0	0
Derivative financial instruments, Liabilities	0	0
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	770,039	743,649
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	572,080	519,241
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	112,743	133,601
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	85,216	90,807
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Total U.S. government agency and sponsored agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	770,039	743,649
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Derivative financial instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments, Assets	1,354	1,088
Derivative financial instruments, Liabilities	1,265	1,149
Recurring Basis | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Unobservable Inputs | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Unobservable Inputs | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Unobservable Inputs | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Unobservable Inputs | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Unobservable Inputs | Total U.S. government agency and sponsored agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Recurring Basis | Significant Unobservable Inputs | Derivative financial instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments, Assets	0	0
Derivative financial instruments, Liabilities	$ 0	$ 0

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) - Non-recurring Basis - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	$ 37,226	$ 63,114
Other real estate owned	1,545	2,360
Repossessed personal property	681	857
Quoted Prices in Active Markets for Identical Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	0	0
Other real estate owned	0	0
Repossessed personal property	0	0
Significant Observable Inputs with No Active Market with Identical Characteristics
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	0	0
Other real estate owned	0	0
Repossessed personal property	0	0
Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	37,226	63,114
Other real estate owned	1,545	2,360
Repossessed personal property	$ 681	$ 857

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Parenthetical) (Detail) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable	$ 4,728,759,000	$ 4,789,742,000
Non-recurring Basis | Real estate loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable	$ 37,200,000	63,100,000
Non-recurring Basis | Commercial and industrial loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable		$ 41,000

XML

Fair Value Measurements - Quantitative Information about Level 3 Fair Value Comments for Assets Measured at Fair Value on Non-Recurring Basis (Detail) - Significant Unobservable Inputs - Non-recurring Basis $ in Thousands	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		$ 63,114
Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 37,226	63,073
Retail | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 6,270	$ 6,330
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Retail | Minimum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.045)	(0.045)
Retail | Maximum [Member] | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.035	0.035
Retail | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.022)	0.014
Other | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 8,137	$ 8,410
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Other | Minimum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.066)	(0.055)
Other | Maximum [Member] | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.021	0.034
Other | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.054)	0.015
Hospitality | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 8,941	$ 20,612
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Construction | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 11,046	$ 24,854
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Construction | Minimum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.020)	(0.020)
Construction | Maximum [Member] | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.010	0.012
Construction | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.010)	(0.008)
Residential/Consumer Loans | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 2,832	$ 2,867
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Residential/Consumer Loans | Minimum | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.020)	(0.013)
Residential/Consumer Loans | Maximum [Member] | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.009	0.015
Residential/Consumer Loans | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.015)	0.006
Repossessed Personal Property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 681	$ 857
Alternative Investment, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 1,545	$ 2,360
Alternative Investment, Valuation Technique [Extensible List]		us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Other Real Estate Owned | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.053)	(0.035)
Other Real Estate Owned | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.015	0.015
Other Real Estate Owned | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.023)	(0.014)
Commercial lines of credit | Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		$ 41
Alternative Investment, Valuation Technique [Extensible List]		us-gaap:MarketApproachValuationTechniqueMember
Commercial lines of credit | Minimum | Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		(0.009)
Commercial lines of credit | Maximum [Member] | Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		0.015
Commercial lines of credit | Weighted Average | Commercial and Industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range		0.006

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Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financial assets:
Cash and due from banks	$ 646,445	$ 391,849
Securities available for sale	780,114	753,781
Loans held for sale	32,674	8,568
Loans receivable, net of allowance for credit losses	4,728,759	4,789,742
Accrued interest receivable	14,806	16,363
Financial liabilities:
Noninterest-bearing deposits	2,174,624	1,898,766
Interest-bearing deposits	3,335,199	3,376,242
Borrowings and subordinated debentures	269,124	268,972
Accrued interest payable	2,352	4,564
Quoted Prices in Active Markets for Identical Assets | Fair Value
Financial assets:
Cash and due from banks	646,445	391,849
Securities available for sale	10,075	10,132
Loans held for sale	0	0
Loans receivable, net of allowance for credit losses	0	0
Accrued interest receivable	14,806	16,363
Financial liabilities:
Noninterest-bearing deposits	0	0
Interest-bearing deposits	0	0
Borrowings and subordinated debentures	0	0
Accrued interest payable	2,352	4,564
Significant Observable Inputs with No Active Market with Identical Characteristics | Fair Value
Financial assets:
Cash and due from banks	0	0
Securities available for sale	770,039	743,649
Loans held for sale	34,198	9,270
Loans receivable, net of allowance for credit losses	0	0
Accrued interest receivable	0	0
Financial liabilities:
Noninterest-bearing deposits	2,174,624	1,898,766
Interest-bearing deposits	0	0
Borrowings and subordinated debentures	151,158	151,714
Accrued interest payable	0	0
Significant Unobservable Inputs | Fair Value
Financial assets:
Cash and due from banks	0	0
Securities available for sale	0	0
Loans held for sale	0	0
Loans receivable, net of allowance for credit losses	4,700,311	4,755,302
Accrued interest receivable	0	0
Financial liabilities:
Noninterest-bearing deposits	0	0
Interest-bearing deposits	3,335,266	3,380,179
Borrowings and subordinated debentures	115,067	118,809
Accrued interest payable	$ 0	$ 0

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Off-Balance Sheet Commitments - Distribution of Undisbursed Loan Commitments (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
Total undisbursed loan commitments	$ 580,861	$ 555,616
Commitments to extend credit
Loss Contingencies [Line Items]
Total undisbursed loan commitments	463,841	453,900
Standby letters of credit
Loss Contingencies [Line Items]
Total undisbursed loan commitments	48,922	47,169
Commercial letters of credit
Loss Contingencies [Line Items]
Total undisbursed loan commitments	$ 68,098	$ 54,547

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Off-Balance Sheet Commitments - Allowance for Credit Losses Related to Off-Balance Sheet Items (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Loss Contingencies [Line Items]
Balance at beginning of period	$ 2,792	$ 2,397
Adjusted balance	2,792	2,062
Provision expense (income) for credit losses	(450)	823
Balance at end of period	$ 2,342	2,885
ASU 2016-13
Loss Contingencies [Line Items]
Adjustment related to adoption of ASU 2016-13		$ (335)

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Leases - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Right-of-use assets	$ 49,100,000		$ 52,200,000
Total lease liabilities - Operating leases	$ 52,008,000		$ 54,000,000.0
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued expenses and other liabilities		Accrued expenses and other liabilities
Weighted average remaining lease term	8 years 6 months 25 days		8 years 9 months
Weighted average discount rate (percent)	2.42%		2.43%
Net lease expense	$ 2,100,000	$ 2,000,000.0
Operating lease costs	2,000,000.0	2,000,000.0
Sublease income	33,000	33,000
Cash paid for amounts included in the measurement of Company's operating lease liabilities	$ 2,000,000.0	$ 2,000,000.0
Minimum
Lessee, Lease, Description [Line Items]
Operating lease remaining term	1 year
Finance lease remaining term	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Operating lease remaining term	13 years
Finance lease remaining term	13 years
Operating lease extension term	5 years
Finance lease extension term	5 years

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Leases - Future Minimum Rental Commitments Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
2021	$ 7,424
2022	7,196
2023	6,881
2024	6,415
2025	5,889
Thereafter	24,057
Remaining lease commitments	57,862
Interest	(5,854)
Present value of lease liability	$ 52,008	$ 54,000

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Liquidity - Additional Information (Detail) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Total borrowing capacity based on pledged collateral	$ 1,570,000,000	$ 1,440,000,000
Amount available from borrowing source	31,100,000	26,300,000
Borrowings	0	0
Line of credit	115,000,000.0
Hanmi Bank
Line of Credit Facility [Line Items]
Cash on deposit with bank subsidiary	11,600,000	17,300,000
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	150,000,000.0	150,000,000.0
Broker deposits	$ 175,300,000	193,700,000
Percentage of borrowings from FHLB (up to)	30.00%
Total borrowing capacity based on pledged collateral	$ 1,680,000,000	1,730,000,000
Borrowing capacity available based on pledged collateral	1,390,000,000	$ 1,440,000,000
Amount available from borrowing source	31,100,000
Carrying value for loans pledged by Bank	32,600,000
Borrowings	0
Maximum borrowing capacity of line of credit	$ 100,000,000.0

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Derivatives and Hedging Activities - Schedule of Fair Value of Derivative Financial Instruments as well as their Location on Balance Sheet (Detail) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Derivatives Fair Value [Line Items]
Total derivative assets	$ 1,354,000	$ 1,088,000
Total derivative liabilities	1,265,000	1,149,000
Not Designated as Hedging Instrument | Interest Rate Products
Derivatives Fair Value [Line Items]
Notional Amount	66,759,000	66,904,000
Total derivative assets	1,354,000	1,088,000
Total derivative liabilities	$ 1,265,000	$ 1,149,000

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Derivatives and Hedging Activities - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Derivative [Line Items]
Derivative financial instruments outstanding		$ 0
Fair value of derivatives in net liability position	$ 0		$ 1,100,000
Amount of collateral posted	1,000,000.0		1,200,000
Net liability position	89,000		61,000
Derivative fair value of liabilities	1,400,000		1,100,000
Derivative fair value of assets	1,300,000		1,100,000
Termination value	0		$ 1,100,000
Other Income
Derivative [Line Items]
Fee income	$ 0	$ 0

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Derivatives and Hedging Activities - Effect of Derivative Financial Instruments that are Not Designated as Hedging Instruments on Income Statement (Detail) - Not Designated as Hedging Instrument $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($)
Derivative Instruments Gain Loss [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 150
Interest Rate Products | Other Income
Derivative Instruments Gain Loss [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 150

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Derivatives and Hedging Activities - Summary of Gross Presentation, Effects of Offsetting and a Net Presentation of Derivatives (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Derivatives Fair Value [Line Items]
Gross Amounts of Recognized Assets, Offsetting of Derivative Assets	$ 1,354	$ 1,088
Net Amounts of Assets presented in the Consolidated Balance Sheets, Offsetting of Derivative Assets	1,354	1,088
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets, Net Amount		1,088
Gross Amounts of Recognized Liabilities, Offsetting of Derivative Liabilities	1,265	1,149
Net Amounts of Liabilities presented in the Consolidated Balance Sheets, Offsetting of Derivative Liabilities	1,265	1,149
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Liabilities, Net Amount		(1)
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Liabilities, Cash Collateral Provided		1,150
Derivative Liabilities, Financial Instruments
Derivatives Fair Value [Line Items]
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Liabilities, Net Amount	1,265
Derivative Assets, Financial Instruments
Derivatives Fair Value [Line Items]
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets, Net Amount	1,265	$ 1,088
Derivative Assets, Cash Collateral Received
Derivatives Fair Value [Line Items]
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets, Net Amount	$ 89