10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the Quarterly Period Ended September 30, 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 November 1, 2021, there were 30,407,905 outstanding shares of the Registrant’s Common Stock.

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

Three Months Ended September 30, 2021

Table of Contents

	Part I – Financial Information
Item 1.	Financial Statements	3
	Consolidated Balance Sheets at September 30, 2021 (unaudited) and December 31, 2020	3
	Consolidated Statements of Income for the three and nine months ended September 30, 2021 and 2020 (unaudited)	4
	Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2021 and 2020 (unaudited)	6
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020 (unaudited)	8
	Notes to Consolidated Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	61
Item 4.	Controls and Procedures	62
	Part II – Other Information
Item 1.	Legal Proceedings	63
Item 1A.	Risk Factors	63
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.	Defaults Upon Senior Securities	63
Item 4.	Mine Safety Disclosures	63
Item 5.	Other Information	63
Item 6.	Exhibits	64
Signatures		65

2

Part I — Financial Information

Item 1. Financial Statements

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)

	September 30,			December 31,
	2021			2020
	(Unaudited)
Assets
Cash and due from banks	$	824,347		$	391,849
Securities available for sale, at fair value (amortized cost of $914,649 as of September 30, 2021 and $749,458 as of December 31, 2020)		906,996			753,781
Loans held for sale, at the lower of cost or fair value		17,881			8,568
Loans receivable, net of allowance for credit losses of $76,613 as of September 30, 2021 and $90,426 as of December 31, 2020		4,782,252			4,789,742
Accrued interest receivable		11,943			16,363
Premises and equipment, net		25,582			26,431
Customers' liability on acceptances		352			1,319
Servicing assets		6,838			6,212
Goodwill and other intangible assets, net		11,450			11,612
Federal Home Loan Bank ("FHLB") stock, at cost		16,385			16,385
Income tax assets		42,840			42,704
Bank-owned life insurance		54,653			53,894
Prepaid expenses and other assets		75,014			83,028
Total assets	$	6,776,533		$	6,201,888
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,548,591		$	1,898,766
Interest-bearing		3,180,945			3,376,242
Total deposits		5,729,536			5,275,008
Accrued interest payable		1,235			4,564
Bank's liability on acceptances		352			1,319
Borrowings		137,500			150,000
Subordinated debentures ($224,100 and $126,800 face amount less unamortized discount and debt issuance costs of $9,256 and $7,828 as of September 30, 2021 and December 31, 2020, respectively)		214,844			118,972
Accrued expenses and other liabilities		74,011			74,981
Total liabilities		6,157,478			5,624,844
Stockholders' equity:
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of September 30, 2021 and December 31, 2020		—			—
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 33,617,126 shares (30,441,601 shares outstanding) as of September 30, 2021 and issued 33,560,801 shares (30,717,835 shares outstanding) as of December 31, 2020		33			33
Additional paid-in capital		580,259			578,360
Accumulated other comprehensive (loss) income, net of tax benefit of $2,296 as of September 30, 2021 and net of tax expense of $1,247 as of December 31, 2020		(5,357	)		3,076
Retained earnings		169,534			114,621
Less treasury stock; 3,175,525 shares as of September 30, 2021 and 2,842,966 shares as of December 31, 2020		(125,414	)		(119,046	)
Total stockholders' equity		619,055			577,044
Total liabilities and stockholders' equity	$	6,776,533		$	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 September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
Interest and dividend income:
Interest and fees on loans receivable	$	52,961		$	52,586	$	156,361		$	159,464
Interest on securities		1,865			1,972		4,409			8,852
Dividends on FHLB stock		245			204		693			696
Interest on deposits in other banks		329			84		601			495
Total interest and dividend income		55,400			54,846		162,064			169,507
Interest expense:
Interest on deposits		2,466			7,032		9,419			28,663
Interest on borrowings		409			582		1,332			1,838
Interest on subordinated debentures		2,545			1,627		5,759			4,984
Total interest expense		5,420			9,241		16,510			35,485
Net interest income before credit loss expense		49,980			45,605		145,554			134,022
Credit loss (recovery) expense		(7,234	)		38		(8,452	)		40,371
Net interest income after credit loss (recovery) expense		57,214			45,567		154,006			93,651
Noninterest income:
Service charges on deposit accounts		3,437			2,002		8,036			6,434
Trade finance and other service charges and fees		1,188			972		3,468			2,920
Gain on sale of Small Business Administration ("SBA") loans		5,842			2,324		13,475			3,478
Net gain on sales of securities		—			—		99			15,712
Other operating income		2,042			1,842		6,123			5,751
Total noninterest income		12,509			7,140		31,201			34,295
Noninterest expense:
Salaries and employee benefits		18,795			17,194		53,917			49,645
Occupancy and equipment		5,037			4,650		14,235			13,633
Data processing		2,934			2,761		8,775			8,233
Professional fees		1,263			1,794		4,123			5,255
Supplies and communications		741			698		2,231			2,337
Advertising and promotion		953			594		1,685			1,783
Other operating expenses		2,779			2,233		7,852			7,245
Total noninterest expense		32,502			29,924		92,818			88,131
Income before tax		37,221			22,783		92,389			39,815
Income tax expense		10,656			6,439		27,042			11,945
Net income	$	26,565		$	16,344	$	65,346		$	27,870
Basic earnings per share	$	0.87		$	0.53	$	2.13		$	0.91
Diluted earnings per share	$	0.86		$	0.53	$	2.13		$	0.91
Weighted-average shares outstanding:
Basic		30,474,391			30,464,263		30,222,978			30,276,462
Diluted		30,552,196			30,464,263		30,298,553			30,276,462

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

4

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Net income	$	26,565		$	16,344		$	65,346		$	27,870
Other comprehensive income (loss), net of tax:
Unrealized gain on securities:
Unrealized holding (loss) gain arising during period		(3,568	)		1,947			(11,877	)		13,378
Less: reclassification adjustment for net gain included in net income		—			—			(99	)		(15,712	)
Income tax benefit (expense) related to items of other comprehensive income		1,070			(561	)		3,543			673
Other comprehensive income (loss), net of tax		(2,498	)		1,386			(8,433	)		(1,661	)
Comprehensive income	$	24,067		$	17,730		$	56,913		$	26,209

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

5

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three Months Ended September 30, 2021 and September 30, 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 July 1, 2020		33,495,913			(2,838,284	)		30,657,629		$	33	$	577,211	$	335		$	88,859		$	(119,002	)	$	547,436
Restricted stock awards, net of forfeitures		65,070			—			65,070			—		—		—			—			—			—
Share-based compensation expense		—			—			—			—		516		—			—			—			516
Restricted stock surrendered due to employee tax liability		—			(3,108	)		(3,108	)		—		—		—			—			(27	)		(27	)
Cash dividends declared (common stock, $0.08/share)		—			—			—			—		—		—			(2,452	)		—			(2,452	)
Net income		—			—			—			—		—		—			16,344			—			16,344
Change in unrealized gain on securities available for sale, net of income taxes		—			—			—			—		—		1,386			—			—			1,386
Balance at September 30, 2020		33,560,983			(2,841,392	)		30,719,591		$	33	$	577,727	$	1,721		$	102,751		$	(119,029	)	$	563,203
Balance at July 1, 2021		33,617,311			(2,919,659	)		30,697,652		$	33	$	579,595	$	(2,859	)	$	146,651		$	(120,443	)	$	602,977
Restricted stock awards, net of forfeitures		(185	)		—			(185	)		—		—		—			—			—			—
Share-based compensation expense		—			—			—			—		664		—			—			—			664
Restricted stock surrendered due to employee tax liability		—			(5,946	)		(5,946	)		—		—		—			—			(80	)		(80	)
Repurchase of common stock		—			(249,920	)		(249,920	)		—		—		—			—			(4,891	)		(4,891	)
Cash dividends declared (common stock, $0.12/share)		—			—			—			—		—		—			(3,682	)		—			(3,682	)
Net income		—			—			—			—		—		—			26,565			—			26,565
Change in unrealized gain on securities available for sale, net of income taxes		—			—			—			—		—		(2,498	)		—			—			(2,498	)
Balance at September 30, 2021		33,617,126			(3,175,525	)		30,441,601		$	33	$	580,259	$	(5,357	)	$	169,534		$	(125,414	)	$	619,055

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

6

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Nine Months Ended September 30, 2021 and September 30, 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	)	$	563,267
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	)		551,100
Restricted stock awards, net of forfeitures		85,581		—			85,581			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		1,911		—			—			—			1,911
Restricted stock surrendered due to employee tax liability		—		(30,214	)		(30,214	)		—		—		—			—			(317	)		(317	)
Repurchase of common stock		—		(135,400	)		(135,400	)		—		—		—			—			(2,196	)		(2,196	)
Cash dividends declared (common stock, $0.44/share)		—		—			—			—		—		—			(13,504	)		—			(13,504	)
Net income		—		—			—			—		—		—			27,870			—			27,870
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		(1,661	)		—			—			(1,661	)
Balance at September 30, 2020		33,560,983		(2,841,392	)		30,719,591		$	33	$	577,727	$	1,721		$	102,751		$	(119,029	)	$	563,203
Balance at January 1, 2021		33,560,801		(2,842,966	)		30,717,835		$	33	$	578,360	$	3,076		$	114,621		$	(119,046	)	$	577,044
Restricted stock awards, net of forfeitures		56,325		—			56,325			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		1,899		—			—			—			1,899
Restricted stock surrendered due to employee tax liability		—		(27,639	)		(27,639	)		—		—		—			—			(531	)		(531	)
Repurchase of common stock		—		(304,920	)		(304,920	)		—		—		—			—			(5,837	)		(5,837	)
Cash dividends declared (common stock, $0.34/share)		—		—			—			—		—		—			(10,433	)		—			(10,433	)
Net income		—		—			—			—		—		—			65,346			—			65,346
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		(8,433	)		—			—			(8,433	)
Balance at September 30, 2021		33,617,126		(3,175,525	)		30,441,601		$	33	$	580,259	$	(5,357	)	$	169,534		$	(125,414	)	$	619,055

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

7

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

	Nine Months Ended September 30,
	2021			2020
Cash flows from operating activities:
Net income	$	65,346		$	27,870
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		12,186			8,008
Share-based compensation expense		1,899			1,911
Credit loss (recovery) expense		(8,452	)		40,371
Gain on sales of securities		(99	)		(15,712	)
Gain on sales of SBA loans		(13,475	)		(3,478	)
Origination of SBA loans held for sale		(233,642	)		(54,295	)
Proceeds from sales of SBA loans		233,711			50,950
Change in bank-owned life insurance		(759	)		(841	)
Change in prepaid expenses and other assets		5,531			(32,631	)
Change in income tax assets		3,407			(1,262	)
Change in accrued expenses and other liabilities		(188	)		19,384
Net cash provided by (used in) operating activities		65,465			40,275
Cash flows from investing activities:
Purchases of securities available for sale		(402,259	)		(747,858	)
Proceeds from matured, called and repayment of securities		223,129			174,021
Proceeds from sales of securities available for sale		8,035			495,566
Purchases of loans receivable		(1,500	)		(9,437	)
Purchases of premises and equipment		(2,450	)		(4,860	)
Proceeds from disposition of premises and equipment		45			173
Proceeds from sales of other real estate owned ("OREO")		1,479			431
Change in loans receivable, excluding purchases		20,415			(249,547	)
Net cash provided by (used in) investing activities		(153,106	)		(341,511	)
Cash flows from financing activities:
Change in deposits		454,528			495,330
Change in overnight borrowings		—			(15,000	)
Proceeds from borrowings		(12,500	)		75,000
Issuance of subordinated debentures		107,956			—
Purchase of subordinated debentures		(13,043	)		—
Cash paid for surrender of vested shares due to employee tax liability		(531	)		(317	)
Repurchase of common stock		(5,837	)		(2,196	)
Cash dividends paid		(10,433	)		(13,504	)
Net cash provided by (used in) financing activities		520,140			539,313
Net increase (decrease) in cash and due from banks		432,498			238,077
Cash and due from banks at beginning of year		391,849			121,678
Cash and due from banks at end of period	$	824,347		$	359,755
Supplemental disclosures of cash flow information:
Interest paid	$	19,839		$	41,273
Income taxes paid	$	22,265		$	13,546
Non-cash activities:
Transfer of loans receivable to other real estate owned	$	—		$	1,052
Income tax benefit (expense) related to items of other comprehensive income	$	3,543		$	673
Change in right-of-use asset obtained in exchange for lease liability	$	2,905		$	21,815

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

8

Hanmi Financial Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1 — Organization and Basis of Presentation

Hanmi Financial Corporation (“Hanmi Financial,” the “Company,” “we,” “us” or “our”) is a bank holding company whose primary subsidiary is Hanmi Bank (the “Bank”). Our primary operations are related to traditional banking activities, including the acceptance of deposits and the lending and investing of money 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 September 30, 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 COVID-19 pandemic resulted in restrictions on travel and business activities which have yet to return to pre-pandemic levels. 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.

9

Note 2 — Securities

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

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
	(in thousands)
September 30, 2021
U.S. Treasury securities	$	4,948	$	—	$	(3	)	$	4,945
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		641,256		138		(5,332	)		636,062
Collateralized mortgage obligations		100,244		190		(551	)		99,883
Debt securities		99,015		4		(583	)		98,436
Total U.S. government agency and sponsored agency obligations		840,515		332		(6,466	)		834,381
Municipal bonds-tax exempt		69,186		—		(1,516	)		67,670
Total securities available for sale	$	914,649	$	332	$	(7,985	)	$	906,996
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 September 30, 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.

	September 30, 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	$	2,019	$	2,029	$	13,305	$	13,435
Over one year through five years		94,431		94,039		139,876		140,100
Over five years through ten years		54,014		53,971		25,764		25,768
Over ten years		764,185		756,957		570,513		574,478
Total	$	914,649	$	906,996	$	749,458	$	753,781

10

The following table summarizes debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded at September 30, 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)
September 30, 2021
U.S. Treasury securities	$	(3	)	$	4,945	$	1	$	—		$	—	$	—	$	(3	)	$	4,945	$	1
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities	$	(4,954	)	$	546,307		97	$	(378	)	$	14,699		2	$	(5,332	)	$	561,006		99
Collateralized mortgage obligations		(461	)		47,720		12		(90	)		5,277		1		(551	)		52,997		13
Debt securities		(583	)		93,432		17		—			—		—		(583	)		93,432		17
Total U.S. government agency and sponsored agency obligations		(5,998	)		687,459		126		(468	)		19,976		3		(6,466	)		707,435		129
Municipal bonds-tax exempt		(1,516	)		67,670		17		—			—		—		(1,516	)		67,670		17
Total	$	(7,517	)	$	760,074		144	$	(468	)	$	19,976		3	$	(7,985	)	$	780,050		147
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 a quarterly basis. This assessment takes into account the changes in the credit quality of these debt securities since acquisition and the likelihood of a credit loss occurring over the life of the securities. In the event that a credit loss is expected to occur in the future, an allowance is established and a corresponding credit loss is recognized. Based on this analysis, as of September 30, 2021, the Company determined that no credit losses are expected to be realized on the tax-exempt municipal bond portfolio. The remainder of the portfolio consists of U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government, and are therefore not expected to incur credit losses.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Gross realized gains on sales of securities	$	—	$	—	$	99	$	15,712
Gross realized losses on sales of securities		—		—		—		—
Net realized gains on sales of securities	$	—	$	—	$	99	$	15,712
Proceeds from sales of securities	$	—	$	—	$	8,035	$	495,566

There were no sales of securities during the three months ended September 30, 2021 and 2020.

During the nine months ended September 30, 2021, there were $99,000 in gains resulting from the sale of $8.0 million of securities previously recorded with $142,000 unrealized gains in accumulated other comprehensive income. During the nine months ended September 30, 2020, there were $15.7 million in net gains in earnings resulting from the sale of $495.6 million of securities previously recorded with $15.3 million unrealized gains in accumulated other comprehensive income.

11

Securities available for sale with market values of $26.1 million and $27.3 million as of September 30, 2021 and December 31, 2020, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.

At September 30, 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.

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:

	September 30, 2021			December 31, 2020
	(in thousands)
Real estate loans:
Commercial property
Retail	$	942,996		$	824,606
Hospitality		725,864			859,953
Other (1)		1,783,477			1,610,377
Total commercial property loans		3,452,337			3,294,936
Construction		76,168			58,882
Residential/consumer loans		354,861			345,831
Total real estate loans		3,883,366			3,699,649
Commercial and industrial loans		516,357			757,255
Leases receivable		459,142			423,264
Loans receivable		4,858,865			4,880,168
Allowance for credit losses		(76,613	)		(90,426	)
Loans receivable, net	$	4,782,252		$	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 September 30, 2021 and December 31, 2020, PPP loans totaling $21.9 million and $295.7 million, respectively, were included in the table above. In addition, at September 30, 2021 and December 31, 2020, there were $12.0 million and $155.6 million, respectively, of loans modified under Section 4013 of the CARES Act.

Accrued interest on loans was $10.2 million and $15.2 million at September 30, 2021 and December 31, 2020, respectively. Accrued interest at September 30, 2021 and December 31, 2020 included unpaid deferred interest receivable for loans currently or previously modified under the CARES Act of $3.6 million and $7.5 million, net of a $311,000 and $1.7 million valuation allowance, respectively.

At September 30, 2021 and December 31, 2020, loans of $2.17 billion were pledged to secure advances from the FHLB.

12

Loans Held for Sale

The following is the activity for loans held for sale for the three months ended September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	13,092		$	22,938		$	36,030
Originations and transfers		28,537			15,228			43,765
Sales		(27,513	)		(34,956	)		(62,469	)
Principal paydowns and amortization		(4	)		559			555
Balance at end of period	$	14,112		$	3,769		$	17,881
September 30, 2020
Balance at beginning of period	$	12,661		$	5,281		$	17,942
Originations		12,049			12,107			24,156
Sales		(20,621	)		(8,639	)		(29,260	)
Principal paydowns and amortization		—			(5	)		(5	)
Balance at end of period	$	4,089		$	8,745		$	12,834

Loans held for sale was comprised of $17.9 million and $8.6 million of the guaranteed portion of SBA 7(a) loans at September 30, 2021 and December 31, 2020, respectively. During the three months ended September 30, 2021, the Company recognized $339,000 of gains on the sale of $14.6 million of second draw PPP loans. For the nine months ended September 30, 2021, the Company recognized $3.0 million of gains on the sale of $132.7 million second draw PPP loans.

The following is the activity for loans held for sale for the nine months ended September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	8,042		$	526		$	8,568
Originations and transfers		71,005			162,637			233,642
Sales		(64,930	)		(160,293	)		(225,223	)
Principal payoffs and amortization		(5	)		899			894
Balance at end of period	$	14,112		$	3,769		$	17,881
September 30, 2020
Balance at beginning of period	$	2,943		$	3,077		$	6,020
Originations		31,204			23,091			54,295
Sales		(30,053	)		(17,419	)		(47,472	)
Principal payoffs and amortization		(5	)		(5	)		(10	)
Balance at end of period	$	4,089		$	8,745		$	12,834

13

Allowance for Credit Losses

The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Leases Receivable			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	63,029		$	8,059		$	12,284		$	83,372
Less loans charged off		—			186			791			977
Recoveries on loans receivable previously charged off		(1,162	)		(330	)		(350	)		(1,842	)
Provision (recovery) for credit losses		(8,128	)		507			(3	)		(7,624	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613
Individually evaluated	$	8		$	13		$	2,173		$	2,194
Collectively evaluated	$	56,055		$	8,697		$	9,667		$	74,419
Loans receivable	$	3,883,366		$	516,357		$	459,142		$	4,858,865
Individually evaluated	$	13,988		$	313		$	6,923		$	21,224
Collectively evaluated	$	3,869,378		$	516,044		$	452,219		$	4,837,641
September 30, 2020
Balance at beginning of period	$	56,418		$	13,388		$	16,524		$	86,330
Less loans charged off		687			383			1,081			2,151
Recoveries on loans receivable previously charged off		(1,497	)		(35	)		(213	)		(1,745	)
Provision (recovery) for credit losses		(6,744	)		7,809			(368	)		697
Ending balance	$	50,484		$	20,849		$	15,287		$	86,620
Individually evaluated	$	35		$	1,623		$	2,087		$	3,745
Collectively evaluated	$	50,449		$	19,226		$	13,200		$	82,875
Loans receivable	$	3,635,330		$	765,484		$	433,323		$	4,834,137
Individually evaluated	$	48,220		$	13,293		$	7,338		$	68,851
Collectively evaluated	$	3,587,110		$	752,191		$	425,985		$	4,765,286

14

The following table details the information on the allowance for credit losses by portfolio segment as of and for the nine months ended September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Leases Receivable			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	51,876		$	21,410		$	17,140			90,426
Less loans charged off		1,491			550			3,893			5,934
Recoveries on loans receivable previously charged off		(1,597	)		(602	)		(694	)		(2,893	)
Provision (recovery) for credit losses		4,081			(12,752	)		(2,101	)		(10,772	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613
Individually evaluated	$	8		$	13		$	2,173		$	2,194
Collectively evaluated	$	56,055		$	8,697		$	9,667		$	74,419
Loans receivable	$	3,883,366		$	516,357		$	459,142		$	4,858,865
Individually evaluated	$	13,988		$	313		$	6,923		$	21,224
Collectively evaluated	$	3,869,378		$	516,044		$	452,219		$	4,837,641
September 30, 2020
Balance at beginning of period	$	36,435		$	16,206		$	8,767		$	61,408
Adjustment related to adoption of ASU 2016-13		14,027			(2,497	)		5,902			17,432
Adjusted balance as of January 1, 2020		50,462			13,709			14,669			78,840
Less loans charged off		14,920			12,972			3,306			31,198
Recoveries on loans receivable previously charged off		(1,653	)		(179	)		(401	)		(2,233	)
Provision for credit losses		13,289			19,932			3,523			36,744
Ending balance	$	50,484		$	20,849		$	15,287		$	86,620
Individually evaluated	$	35		$	1,623		$	2,087		$	3,745
Collectively evaluated	$	50,449		$	19,226		$	13,200		$	82,875
Loans receivable	$	3,635,330		$	765,484		$	433,323		$	4,834,137
Individually evaluated	$	48,220		$	13,293		$	7,338		$	68,851
Collectively evaluated	$	3,587,110		$	752,191		$	425,985		$	4,765,286

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

	September 30, 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	$	5,294	$	942,996		19.4	%	$	4,855	$	824,606		16.9	%
Hospitality		29,600		725,864		14.9	%		28,801		859,953		17.6	%
Other		12,842		1,783,477		36.7	%		13,991		1,610,377		33.0	%
Total commercial property loans		47,736		3,452,337		71.0	%		47,647		3,294,936		67.5	%
Construction		7,565		76,168		1.6	%		2,876		58,882		1.2	%
Residential/consumer loans		762		354,861		7.3	%		1,353		345,831		7.1	%
Total real estate loans		56,063		3,883,366		79.9	%		51,876		3,699,649		75.8	%
Commercial and industrial loans		8,710		516,357		10.6	%		21,410		757,255		15.5	%
Leases receivable		11,840		459,142		9.5	%		17,140		423,264		8.7	%
Total	$	76,613	$	4,858,865		100.0	%	$	90,426	$	4,880,168		100.0	%

15

The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2021 and December 31, 2020, for which repayment is expected to be obtained through the sale of the underlying collateral.

	September 30, 2021		December 31, 2020
	Amortized Cost		Amortized Cost
	(in thousands)
Real estate loans:
Commercial property
Retail	$	2,628	$	6,330
Hospitality		—		20,612
Other (1)		128		8,410
Total commercial property loans		2,756		35,352
Construction		7,046		24,854
Residential/consumer loans		2,523		2,867
Total real estate loans		12,325		63,073
Commercial and industrial loans		—		41
Total	$	12,325	$	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.

16

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)
September 30, 2021
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	827,018	$	722,970	$	485,633	$	434,177	$	298,246	$	495,077	$	48,666	$	3,311,787
Special Mention		—		18,937		16,444		—		2,713		56,380		1,864		96,338
Classified		—		—		5,477		22,586		3,672		12,477		—		44,212
Total commercial property		827,018		741,907		507,554		456,763		304,631		563,934		50,530		3,452,337
Construction
Risk Rating
Pass / Pass Watch		38,304		13,450		—		—		—		—		—		51,754
Special Mention		—		—		—		—		—		17,368		—		17,368
Classified		—		—		—		—		—		7,046		—		7,046
Total construction		38,304		13,450		—		—		—		24,414		—		76,168
Residential/consumer loans
Risk Rating
Pass / Pass-Watch		116,334		19,299		250		23,202		93,590		89,701		6,795		349,171
Special Mention		—		—		—		930		391		2,237		—		3,558
Classified		—		—		—		—		1,819		313		—		2,132
Total residential/consumer loans		116,334		19,299		250		24,132		95,800		92,251		6,795		354,861
Total real estate loans
Risk Rating
Pass / Pass-Watch		981,656		755,719		485,883		457,379		391,836		584,778		55,461		3,712,712
Special Mention		—		18,937		16,444		930		3,104		75,985		1,864		117,264
Classified		—		—		5,477		22,586		5,491		19,836		—		53,390
Total real estate loans		981,656		774,656		507,804		480,895		400,431		680,599		57,325		3,883,366
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		191,318		72,473		34,474		13,864		11,899		7,196		149,708		480,932
Special Mention		—		4,448		4,602		4,017		70		13		151		13,301
Classified		—		—		13,825		221		32		6,004		2,042		22,124
Total commercial and industrial loans		191,318		76,921		52,901		18,102		12,001		13,213		151,901		516,357
Leases receivable:
Risk Rating
Pass / Pass-Watch		171,682		88,342		116,991		57,878		14,673		2,653		—		452,219
Special Mention		—		—		—		—		—		—		—		—
Classified		148		474		4,174		1,418		410		299		—		6,923
Total leases receivable		171,830		88,816		121,165		59,296		15,083		2,952		—		459,142
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,344,656		916,534		637,348		529,121		418,408		594,627		205,169		4,645,863
Special Mention		—		23,385		21,046		4,947		3,174		75,998		2,015		130,565
Classified		148		474		23,476		24,225		5,933		26,139		2,042		82,437
Total loans receivable	$	1,344,804	$	940,393	$	681,870	$	558,293	$	427,515	$	696,764	$	209,226	$	4,858,865

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
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.

18

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)
September 30, 2021
Real estate loans:
Commercial property
Payment performance
Performing	$	827,018	$	741,907	$	507,554	$	456,743	$	303,236	$	560,930	$	50,530	$	3,447,918
Nonperforming		—		—		—		20		1,395		3,004		—		4,419
Total commercial property		827,018		741,907		507,554		456,763		304,631		563,934		50,530		3,452,337
Construction
Payment performance
Performing		38,304		13,450		—		—		—		17,368		—		69,122
Nonperforming		—		—		—		—		—		7,046		—		7,046
Total construction		38,304		13,450		—		—		—		24,414		—		76,168
Residential/consumer loans
Payment performance
Performing		116,334		19,299		250		24,132		93,590		91,938		6,795		352,338
Nonperforming		—		—		—		—		2,210		313		—		2,523
Total residential/consumer loans		116,334		19,299		250		24,132		95,800		92,251		6,795		354,861
Total real estate loans
Payment performance
Performing		981,656		774,656		507,804		480,875		396,826		670,236		57,325		3,869,378
Nonperforming		—		—		—		20		3,605		10,363		—		13,988
Total real estate loans		981,656		774,656		507,804		480,895		400,431		680,599		57,325		3,883,366
Commercial and industrial loans:
Payment performance
Performing		191,318		76,921		52,862		18,102		11,995		12,945		151,901		516,044
Nonperforming		—		—		39		—		6		268		—		313
Total commercial and industrial loans		191,318		76,921		52,901		18,102		12,001		13,213		151,901		516,357
Leases receivable:
Payment performance
Performing		171,668		88,342		116,991		57,878		14,673		2,653		—		452,205
Nonperforming		162		474		4,174		1,418		410		299		—		6,937
Total leases receivable		171,830		88,816		121,165		59,296		15,083		2,952		—		459,142
Total loans receivable:
Payment performance
Performing		1,344,642		939,919		677,657		556,855		423,494		685,834		209,226		4,837,627
Nonperforming		162		474		4,213		1,438		4,021		10,930		—		21,238
Total loans receivable	$	1,344,804	$	940,393	$	681,870	$	558,293	$	427,515	$	696,764	$	209,226	$	4,858,865

19

	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 September 30, 2021, of the $12.0 million of loans modified in accordance with the provision of the CARES Act, $2.6 million were pass and pass-watch, $6.4 million were special mention, and $3.0 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 pass and pass-watch, $31.3 million were special mention, and $24.4 million were classified.

20

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)
September 30, 2021
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	942,996	$	942,996	$	—
Hospitality		—		—		—		—		725,864		725,864		—
Other		1,945		—		128		2,073		1,781,404		1,783,477		—
Total commercial property loans		1,945		—		128		2,073		3,450,264		3,452,337		—
Construction		—		—		—		—		76,168		76,168		—
Residential/consumer loans		1,641		—		1,404		3,045		351,816		354,861		—
Total real estate loans		3,586		—		1,532		5,118		3,878,248		3,883,366		—
Commercial and industrial loans		—		13		—		13		516,344		516,357		—
Leases receivable		2,891		1,532		1,636		6,059		453,083		459,142		13
Total loans receivable	$	6,477	$	1,545	$	3,168	$	11,190	$	4,847,675	$	4,858,865	$	13
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	$	—

At September 30, 2021 and December 31, 2020, currently modified loans under the CARES Act were $12.0 million and $155.6 million, respectively. Of the currently modified loans, $306,000 were 30-59 days past due, no loans were 60-89 days past due, and $94,000 were 90 days or more past due at September 30, 2021, and all loans were current at December 31, 2020. For loans previously modified under the CARES Act, $4.4 million were 30-59 days past due, $900,000 were 60-89 days past due, and $2.2 million were 90 days or more past due at September 30, 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.

21

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(in thousands)
Interest income that would have been recognized had individually evaluated loans performed in accordance with their original terms	$	627		$	1,482		$	2,830		$	4,092
Less: Interest income recognized on individually evaluated loans		(106	)		(204	)		(362	)		(1,319	)
Interest foregone on individually evaluated loans	$	521		$	1,278		$	2,468		$	2,773

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

22

Nonaccrual Loans and Nonperforming Assets

The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of September 30, 2021 and December 31, 2020.

	September 30, 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	$	2,628	$	—	$	—	$	2,628
Hospitality		—		—		—		—
Other		1,440		351		—		1,791
Total commercial property loans		4,068		351		—		4,419
Construction		7,046		—		—		7,046
Residential/consumer loans		2,523		—		—		2,523
Total real estate loans		13,637		351		—		13,988
Commercial and industrial loans		11		302		—		313
Leases receivable		785		6,139		13		6,937
Total	$	14,433	$	6,792	$	13	$	21,238
	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		20,611		—		—		20,611
Other		2,236		909		—		3,145
Total commercial property loans		29,178		909		—		30,087
Construction		24,854		—		—		24,854
Residential/consumer loans		2,350		—		—		2,350
Total real estate loans		56,382		909		—		57,291
Commercial and industrial loans		58		14,450		—		14,508
Leases receivable		2,318		8,916		—		11,234
Total	$	58,758	$	24,275	$	—	$	83,033

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

	September 30, 2021		December 31, 2020
	(in thousands)
Nonaccrual loans	$	21,225	$	83,033
Loans receivable 90 days or more past due and still accruing		13		—
Total nonperforming loans receivable		21,238		83,033
Other real estate owned ("OREO")		675		2,360
Total nonperforming assets	$	21,913	$	85,393

OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020.

23

Troubled Debt Restructurings

As of September 30, 2021 and December 31, 2020, TDRs were $11.3 million and $25.0 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise considered to a borrower for economic or legal reasons related to the borrower’s financial difficulties. 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 September 30, 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)
September 30, 2021
Real estate loans	$	393	$	2,756	$	7,437	$	—	$	10,586	$	559	$	—	$	—	$	—	$	559
Commercial and industrial loans		—		130		—		—		130		—		—		1		11		12
Total	$	393	$	2,886	$	7,437	$	—	$	10,716	$	559	$	—	$	1	$	11	$	571
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 TDRs that occurred during the periods indicated, with their pre- and post-modification recorded amounts.

	Three Months ended						Twelve Months ended
	September 30, 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
	Nine Months ended						Twelve Months ended
	September 30, 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 September 30, 2021 and December 31, 2020, the allowance resulting from the individual evaluation of TDRs was inconsequential.

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 and nine months ended September 30, 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 inconsequential.

24

Note 4 — Servicing Assets

The changes in servicing assets for the three months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30,
	2021			2020
	(in thousands)
Servicing assets:
Balance at beginning of period	$	6,199		$	6,186
Addition related to sale of SBA loans		1,171			686
Amortization		(532	)		(524	)
Balance at end of period	$	6,838		$	6,348

The changes in servicing assets for the nine months ended September 30, 2021 and 2020 were as follows:

	Nine Months Ended September 30,
	2021			2020
	(in thousands)
Servicing assets:
Balance at beginning of period	$	6,212		$	6,956
Addition related to sale of SBA loans		2,328			1,040
Amortization		(1,702	)		(1,648	)
Balance at end of period	$	6,838		$	6,348

At September 30, 2021 and December 31, 2020, we serviced loans sold to unaffiliated parties in the amounts of $459.8 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 $1.1 million for each of the three months ended September 30, 2021 and 2020, and $3.4 million for each of the nine months ended September 30, 2021 and 2020. 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 $532,000 and $524,000 for the three months ended September 30, 2021 and 2020, respectively, and $1.7 million and $1.6 million for the nine months ended September 30, 2021 and 2020, respectively.

The fair value of servicing rights was $8.1 million at September 30, 2021. The fair value at September 30, 2021 was determined using discount rates ranging from 8.6 percent to 10.5 percent and prepayment speeds ranging from 11.0 percent to 17.4 percent, depending on the stratification of the specific right. The fair value of servicing rights was $6.9 million at December 31, 2020. The 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 $10.7 million and $6.4 million representing an effective income tax rate of 28.6 percent and 28.3 percent for the three months ended September 30, 2021 and 2020, respectively. The Company’s income tax expense was $27.0 million and $11.9 million representing an effective income tax rate of 29.3 percent and 30.0 percent for the nine months ended September 30, 2021 and 2020, respectively.

Management concluded that as of September 30, 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 September 30, 2021 and December 31, 2020, respectively. The net current tax asset was $175,000 and $1.0 million as of September 30, 2021 and December 31, 2020, respectively.

As of September 30, 2021, the Company was 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 September 30, 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.

25

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 September 30, 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.

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:

		September 30, 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	$	(1,861	)	$	352	$	2,213	$	(1,746	)	$	467
Third-party originators intangible	7 years		483		(416	)		67		483		(369	)		114
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,727	$	(2,277	)	$	11,450	$	13,727	$	(2,115	)	$	11,612

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 of $250,000 or more at September 30, 2021 and December 31, 2020 were $226.2 million and $311.8 million, respectively. Time deposits at or exceeding the FDIC insurance limit of $250,000 as of September 30, 2021 and December 31, 2020 were $188.2 million and $265.6 million, respectively.

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

At September 30, 2021	Time Deposits of $250,000 or More		Other Time Deposits		Total
	(in thousands)
2021	$	104,321	$	159,946	$	264,267
2022		120,119		559,416		679,535
2023		1,518		33,220		34,738
2024		—		47,006		47,006
2025 and thereafter		264		3,801		4,065
Total	$	226,222	$	803,389	$	1,029,611
At December 31, 2020
2021	$	296,455	$	825,677	$	1,122,132
2022		14,315		115,832		130,147
2023		804		22,881		23,685
2024		—		5,382		5,382
2025 and thereafter		264		2,089		2,353
Total	$	311,838	$	971,861	$	1,283,699

26

Accrued interest payable on deposits was $1.2 million and $4.6 million at September 30, 2021 and December 31, 2020, respectively. Total deposits reclassified to loans due to overdrafts at September 30, 2021 and December 31, 2020 were $259,000 and $241,000, respectively.

Note 8 — Borrowings and Subordinated Debentures

At September 30, 2021, the Bank had no overnight advances and $137.5 million of term advances outstanding with the FHLB with a weighted average interest rate of 1.05 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 September 30, 2021 or December 31, 2020. Interest expense on borrowings for the three months ended September 30, 2021 and 2020 was $409,000 and $582,000, respectively. Interest expense on borrowings for the nine months ended September 30, 2021 and 2020 was $1.3 million and $1.8 million, respectively.

	September 30, 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		1.62	%		50,000		1.61	%
Advances due over 12 months through 24 months		50,000		0.97	%		50,000		1.62	%
Advances due over 24 months through 36 months		37,500		0.40	%		50,000		0.97	%
Outstanding advances	$	137,500		1.05	%	$	150,000		1.40	%

The following is financial data pertaining to FHLB advances:

	September 30, 2021			December 31, 2020
	(dollars in thousands)
Weighted-average interest rate at end of period		1.05	%		1.40	%
Weighted-average interest rate during the period		1.20	%		1.42	%
Average balance of FHLB advances	$	147,897		$	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 $2.17 billion of loans pledged as collateral with the FHLB as of September 30, 2021 and December 31, 2020. Remaining available borrowing capacity was $1.37 billion, subject to the FHLB statutory lending limit of $1.61 billion and $1.44 billion at September 30, 2021 and December 31, 2020, respectively.

The Bank also had securities with market values of $26.1 million and $27.3 million at September 30, 2021 and December 31, 2020, respectively, pledged with the FRB, which provided $24.6 million and $26.3 million in available borrowing capacity through the Fed Discount Window as of September 30, 2021 and December 31, 2020, respectively.

The Company issued Fixed-to-Floating Subordinated Notes (“2017 Notes”) of $100.0 million on March 21, 2017, with a final maturity on March 30, 2027. The 2017 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 2017 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 September 30, 2021 and December 31, 2020, the balance of 2017 Notes included in the Company’s Consolidated Balance Sheet, net of debt issuance cost, was $86.1 million and $98.5 million, respectively. During the three and nine months ended September 30, 2021, the Company acquired $12.7 million of the 2017 Notes on the open market at a premium to par of $343,000 and accelerated the amortization of $174,000 in debt issuance costs, resulting in $517,000 in incremental interest expense.

On August 20, 2021, the Company issued additional Fixed-to-Floating Subordinated Notes (“2021 Notes”) of $110.0 million with a final maturity date of September 1, 2031. The 2021 Notes have an initial fixed interest rate of 3.75 percent per annum, payable semiannually in arrears on March 1 and September 1 of each year, up to but excluding September 1, 2026. From and including September 1, 2026 and thereafter, the 2021 Notes will bear interest at a floating rate per annum equal to the Benchmark rate (which is expected to be the Three-Month Term SOFR) plus 310 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. If the then current three-month term SOFR rate is less than zero, the three-month SOFR will be deemed to be zero. Debt issuance cost was $2.0 million, which is being amortized through the Note’s

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maturity date. At September 30, 2021, the balance of the 2021 Notes included in the Company’s Consolidated Balance Sheet, net of issuance cost, was $108.0 million.

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. 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 September 30, 2021 and December 31, 2020, the balance of Subordinated Debentures included in the Company’s Consolidated Balance Sheets, net of discount of $6.1 million and $6.4 million, was $20.7 million and $20.4 million, respectively. The amortization of discount was $102,000 and $99,000 for the three months ended September 30, 2021 and 2020, respectively, and $300,000 and $291,000, for the nine months ended September 30, 2021 and 2020, respectively.

Note 9 — Earnings Per Share

Earnings per share (“EPS”) is calculated on both a basic and a diluted basis. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted from the issuance of common stock that then shared in earnings, excluding common shares in treasury. For diluted EPS, the weighted-average number of common shares includes the impact of unvested 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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Basic EPS
Net income	$	26,565	$	16,344	$	65,346	$	27,870
Less: income allocated to unvested restricted stock		138		98		948		346
Income allocated to common shares	$	26,427	$	16,246	$	64,398	$	27,524
Weighted-average shares for basic EPS		30,474,391		30,464,263		30,222,978		30,276,462
Basic EPS (1)	$	0.87	$	0.53	$	2.13	$	0.91
Effect of dilutive stock options and unvested performance restricted stock		77,805		—		75,575		—
Diluted EPS
Income allocated to common shares	$	26,427	$	16,246	$	64,398	$	27,524
Weighted-average shares for diluted EPS		30,552,196		30,464,263		30,298,553		30,276,462
Diluted EPS (1)	$	0.86	$	0.53	$	2.13	$	0.91

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

There were no anti-dilutive stock options outstanding for the three months ended September 30, 2021 or 2020, respectively.

During the nine months ended September 30, 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. No such grants were issued during the three months ended September 30, 2021. These units have a three-year cliff vesting period and include dividend equivalent rights. Total performance stock units outstanding as of September 30, 2021 were 66,563 with an aggregate grant fair value of $1.0 million. As of September 30, 2020, there were no performance stock units outstanding.

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Note 10 — Regulatory Matters

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

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

At September 30, 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 7.17 percent and 6.86 percent and the Company's capital conservation buffer was 6.18 percent and 5.93 percent as of September 30, 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 September 30, 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)
September 30, 2021
Total capital (to risk-weighted assets):
Hanmi Financial	$	890,412		17.18	%	$	414,662		8.00	%	N/A		N/A
Hanmi Bank	$	786,150		15.17	%	$	414,653		8.00	%	$	518,317		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	631,277		12.18	%	$	310,997		6.00	%	N/A		N/A
Hanmi Bank	$	721,131		13.91	%	$	310,990		6.00	%	$	414,653		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	610,548		11.78	%	$	233,248		4.50	%	N/A		N/A
Hanmi Bank	$	721,131		13.91	%	$	233,242		4.50	%	$	336,906		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	631,277		9.50	%	$	265,683		4.00	%	N/A		N/A
Hanmi Bank	$	721,131		10.86	%	$	265,650		4.00	%	$	332,063		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

30

sheets are indicative of the fact that cost is lower than fair value. At September 30, 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 to sale or as circumstances require and the fair value adjustments are made to the asset based on its value prior to sale.

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Assets and Liabilities Measured at Fair Value on a Recurring Basis

As of September 30, 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)
September 30, 2021
Assets:
Securities available for sale:
U.S. Treasury securities	$	4,945	$	—	$	—	$	4,945
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		636,062		—		636,062
Collateralized mortgage obligations		—		99,883		—		99,883
Debt securities		—		98,436		—		98,436
Total U.S. government agency and sponsored agency obligations		—		834,381		—		834,381
Municipal bonds-tax exempt		—		67,670		—		67,670
Total securities available for sale	$	4,945	$	902,051	$	—	$	906,996
Derivative financial instruments	$	—	$	800	$	—	$	800
Liabilities:
Derivative financial instruments	$	—	$	769	$	—	$	769
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 September 30, 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)
September 30, 2021
Assets:
Collateral dependent loans (1)	$	12,325	$	—	$	—	$	12,325
Other real estate owned		675		—		—		675
Repossessed personal property		180		—		—		180
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 $12.3 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 assumptions for assets measured at fair value on a non-recurring basis at September 30, 2021 and December 31, 2020:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
September 30, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	2,628	Market approach	Market data comparison	(28)% to 23% / (6)%
Other		128	Market approach	Market data comparison	(10)% to 5% / (3)%
Construction		7,046	Market approach	Market data comparison	(20)% to 10% / (10)%
Residential/consumer loans		2,523	Market approach	Market data comparison	(20)% to 8% / (15)%
Total real estate loans		12,325
Total	$	12,325
Other real estate owned	$	675	Market approach	Market data comparison	(20)% to (5)% / (12)%
Repossessed personal property		180	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 September 30, 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:

	September 30, 2021
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	824,347	$	824,347	$	—	$	—
Securities available for sale		906,996		4,945		902,051		—
Loans held for sale		17,881		—		19,937		—
Loans receivable, net of allowance for credit losses		4,782,252		—		—		4,774,003
Accrued interest receivable		11,943		11,943		—		—
Financial liabilities:
Noninterest-bearing deposits		2,548,591		—		2,548,591		—
Interest-bearing deposits		3,180,945		—		—		3,180,790
Borrowings and subordinated debentures		352,344		—		137,991		211,880
Accrued interest payable		1,235		1,235		—		—

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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:

	September 30,		December 31,
	2021		2020
	(in thousands)
Commitments to extend credit	$	536,149	$	453,900
Standby letters of credit		49,006		47,169
Commercial letters of credit		60,234		54,547
Total undisbursed loan commitments	$	645,389	$	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.

36

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

	Three Months Ended September 30,					Nine Months Ended September 30,
	2021		2020			2021		2020
	(in thousands)
Balance at beginning of period	$	3,643	$	6,347		$	2,792	$	2,397
Adjustment related to adoption of ASU 2016-13		—		—			—		(335	)
Adjusted balance		3,643		6,347			2,792		2,062
Provision expense (recovery) for credit losses		1,208		(658	)		2,059		3,627
Balance at end of period	$	4,851	$	5,689		$	4,851	$	5,689

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 September 30, 2021, the outstanding balances for our right-of-use asset and lease liability were $48.2 million and $51.7 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 September 30, 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	$	7,986
2022		7,833
2023		7,201
2024		6,816
2025		5,706
Thereafter		21,413
Remaining lease commitments		56,955
Interest		(5,285	)
Present value of lease liability	$	51,670

37

Weighted average remaining lease terms for the Company's operating leases were 8.01 years and 8.75 years as of September 30, 2021 and December 31, 2020, respectively. Weighted average discount rates used for the Company's operating leases were 2.38 percent and 2.43 percent as of September 30, 2021 and December 31, 2020, respectively. Net lease expense recognized for the three months ended September 30, 2021 and 2020 was $2.3 million and $2.0 million, respectively. For the nine months ended September 30, 2021 and 2020, net lease expense recognized was $6.3 million and $6.1 million, respectively. This included operating lease costs of $2.0 million for each of the three months ended September 30, 2021 and 2020. For the nine months ended September 30, 2021 and 2020, operating lease costs were $6.1 million. Sublease income for operating leases was inconsequential for the three and nine months ended September 30, 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 $1.9 million and $1.7 million for the three months ended September 30, 2021 and 2020, respectively, and $6.0 million and $5.6 million for the nine months ended September 30, 2021 and 2020.

Note 14 — Liquidity

Hanmi Financial

As of September 30, 2021 and December 31, 2020, Hanmi Financial had $94.5 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 September 30, 2021 and December 31, 2020, the Bank had $137.5 million and $150.0 million, respectively, of FHLB advances and $144.5 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 September 30, 2021, the total borrowing capacity available based on pledged collateral and the remaining available borrowing capacity were $1.61 billion and $1.37 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 $24.6 million from the Federal Reserve Discount Window, to which the Bank pledged securities with a carrying value of $25.8 million, and had no borrowings as of September 30, 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 September 30, 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.

38

The table below presents the fair value of the Company’s derivative financial instruments as well as their location on the Balance Sheet as of September 30, 2021 and December 31, 2020.

As of September 30, 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	$	66,466	Other Assets	$	800	$	66,466	Other Liabilities	$	769
Total derivatives not designated as hedging instruments				$	800				$	769
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 for the three and nine months ended September 30, 2021 and 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
		Three Months Ended September 30,					Nine Months Ended September 30,
		2021		2020			2021		2020
		(in thousands)
Interest rate products	Other income	$	7	$	(77	)	$	92	$	21
Total		$	7	$	(77	)	$	92	$	21

The Company did not recognize any fee income from its derivative financial instruments for the three and nine months ended September 30, 2021. Fee income recognized from the Company's derivative financial instruments for the three and nine months ended September 30, 2020 was $0 and $512,000.

39

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 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 September 30, 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	$	800	$	—	$	800	$	769	$	31	$	—
Offsetting of Derivative Liabilities
As of September 30, 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	$	769	$	—	$	769	$	769	$	—	$	—
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	)

40

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 September 30, 2021 and December 31, 2020, the fair value of derivatives in a net asset position for counterparty transactions, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $800,000 and $1.1 million, respectively. As of September 30, 2021, the Company had posted $700,000 of collateral from its counterparties related to these agreements and is adequately collateralized since its net asset position was $31,000 ($800,000 fair value of assets less $769,000 fair value of liabilities) as of September 30, 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 September 30, 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

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

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

The following is management’s discussion and analysis of our results of operations and financial condition as of and for the three months ended September 30, 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 September 30, 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 and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following: failure to maintain adequate levels of capital and liquidity to support our operations; the effect of potential future supervisory action against us or Hanmi Bank; the effect of our rating under the Community Reinvestment Act and our ability to address any issues raised in our regulatory exams; general economic and business conditions internationally, nationally and in those areas in which we operate; volatility and deterioration in the credit and equity markets; changes in consumer spending, borrowing and savings habits; availability of capital from private and government sources; demographic changes; competition for loans and deposits and failure to attract or retain loans and deposits; fluctuations in interest rates and a decline in the level of our interest rate spread; 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; the inability to successfully implement future information technology enhancements; difficult business and economic conditions that can adversely affect our industry and business, including competition, fraudulent activity and negative publicity; risks associated with Small Business Administration loans; failure to attract or retain key employees; our ability to access cost-effective funding; fluctuations in real estate values; changes in accounting policies and practices; the 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; the ability to identify a suitable strategic partner or to consummate a strategic transaction; the adequacy of our allowance for credit losses; our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to control expenses; changes in securities markets; and risks as it relates to cyber security against our information technology infrastructure and those of our third party providers and vendors.

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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 pandemic on our business and results of operation. 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 if the economy is unable to substantially reopen, and higher levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase 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; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; a material decrease in net income or a net loss over several quarters could result in the elimination or 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; Federal Deposit Insurance Corporation premiums may increase if the agency experiences additional resolution costs; a worsening of business and economic conditions or in the financial markets could result in an impairment of certain intangible assets such as goodwill or remaining assets; litigation, regulatory enforcement and reputation risk regarding 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; and the unanticipated loss or unavailability of key employees due to the pandemic, which could harm our ability to operate our business or execute our business strategy, especially as we may not be successful in find and integrating suitable replacements. 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 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. As it relates to Bank customers and employees, the Company continues to follow COVID-19 mandates and restrictions issued by governmental authorities.

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.

43

Executive Overview

Net income was $26.6 million, or $0.86 per diluted share, for the three months ended September 30, 2021 compared with $16.3 million, or $0.53 per diluted share, for the same period a year ago. The increase in net income for the 2021 third quarter reflects a net recovery of credit loss expense of $7.2 million for the three months ended September 30, 2021 compared with a net credit loss expense of $38,000 for the same period a year ago. In addition, a $5.4 million increase in non-interest income and a $4.4 million increase in net interest income favorably impacted results. These impacts were offset partially by a $2.6 million increase in noninterest expense.

For the nine months ended September 30, 2021, net income was $65.3 million, or $2.13 per diluted share, compared with $27.9 million, or $0.91 per diluted share, for the same period a year ago. The increase in net income for the nine months ended September 30, 2021 reflects a net recovery of credit loss expense for the nine months ended September 30, 2021 of $8.5 million compared with a net credit loss expense of $40.4 million for the same period a year ago, as well as higher net interest income of $11.5 million, and higher gains on sale of “Small Business Administration (“SBA”) loans of $10.0 million. These impacts were offset partially by a $15.7 million prior year gain on sales of securities and higher noninterest expense of $4.7 million.

Other financial highlights include the following:

• Cash and due from banks increased $432.5 million to $824.3 million as of September 30, 2021 from $391.8 million at December 31, 2020, primarily from a higher volume of noninterest-bearing deposits, reflecting proceeds from PPP loans and other government assistance programs, an increase in our marketing efforts, as well as the issuance of $110.0 million in subordinated debentures.

• Securities increased $153.2 million to $907.0 million at September 30, 2021 from $753.8 million at December 31, 2020, primarily from excess liquidity, which was invested mainly in tax-exempt municipal bonds.

• Loans receivable, before the allowance for credit losses, were $4.86 billion at September 30, 2021 compared with $4.88 billion at December 31, 2020.

• Deposits were $5.73 billion at September 30, 2021 compared with $5.28 billion at December 31, 2020. The increase reflects principally a $649.8 million increase in noninterest-bearing 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
	September 30, 2021								September 30, 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)	$	4,684,570		$	52,961		4.49	%	$	4,734,511		$	52,586		4.42	%
Securities (2)		878,866			1,865		0.87	%		696,285			1,972		1.13	%
FHLB stock		16,385			245		5.93	%		16,385			204		4.95	%
Interest-bearing deposits in other banks		872,783			329		0.15	%		340,486			84		0.10	%
Total interest-earning assets		6,452,604			55,400		3.41	%		5,787,667			54,846		3.77	%
Noninterest-earning assets:
Cash and due from banks		64,454								64,814
Allowance for credit losses		(83,252	)							(86,615	)
Other assets		223,261								245,589
Total assets	$	6,657,067							$	6,011,455
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	115,233		$	15		0.05	%	$	99,161		$	17		0.07	%
Money market and savings		2,033,876			1,207		0.24	%		1,771,615			2,192		0.49	%
Time deposits		1,061,359			1,244		0.46	%		1,357,167			4,823		1.41	%
Total interest-bearing deposits		3,210,468			2,466		0.30	%		3,227,943			7,032		0.87	%
Borrowings		143,750			409		1.13	%		163,364			582		1.42	%
Subordinated debentures		163,340			2,545		6.23	%		118,733			1,627		5.48	%
Total interest-bearing liabilities		3,517,558			5,420		0.61	%		3,510,040			9,241		1.05	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		2,444,759								1,859,832
Other liabilities		79,348								87,811
Stockholders' equity		615,402								553,772
Total liabilities and stockholders' equity	$	6,657,067							$	6,011,455
Net interest income (taxable equivalent basis)				$	49,980							$	45,605
Cost of deposits (3)							0.17	%							0.55	%
Net interest spread (taxable equivalent basis) (4)							2.80	%							2.72	%
Net interest margin (taxable equivalent basis) (5)							3.07	%							3.13	%

(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
	September 30, 2021 vs September 30, 2020
	Increases (Decreases) Due to Change In
	Volume			Rate			Total
	(in thousands)
Interest and dividend income:
Loans receivable (1)	$	(518	)	$	893		$	375
Securities (2)		429			(536	)		(107	)
FHLB stock		—			41			41
Interest-bearing deposits in other banks		186			59			245
Total interest and dividend income		97			457			554
Interest expense:
Demand: interest-bearing	$	3		$	(5	)	$	(2	)
Money market and savings		284			(1,269	)		(985	)
Time deposits		(875	)		(2,704	)		(3,579	)
Borrowings		(64	)		(109	)		(173	)
Subordinated debentures		673			245			918
Total interest expense		21			(3,842	)		(3,821	)
Change in net interest income	$	76		$	4,299		$	4,375

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

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

For the three months ended September 30, 2021 and 2020, net interest income, on a taxable equivalent basis, was $50.0 million and $45.6 million, respectively. The net interest spread and net interest margin, on a taxable equivalent basis, for the quarter ended September 30, 2021 were 2.80 percent and 3.07 percent, respectively, compared with 2.72 percent and 3.13 percent, respectively, for the same period in 2020. Interest and dividend income, on a taxable equivalent basis, increased $554,000, or 1.0 percent, to $55.4 million for the three months ended September 30, 2021 from $54.8 million for the same period in 2020 as the higher balances of securities and interest-bearing deposits at other banks were offset by decreased loan balances and a lower yield earned on securities. Interest expense decreased $3.8 million, or 41.3 percent, to $5.4 million for the three months ended September 30, 2021 from $9.2 million for the same period in 2020 primarily due to a shift from time deposits into lower yielding deposit accounts and lower rates paid on all interest-bearing deposits, offset by the increased interest expense associated with the issuance of $110.0 million of subordinated debt in August 2021.

The average balance of interest earning assets increased $664.9 million, or 11.5 percent, to $6.45 billion for the three months ended September 30, 2021 from $5.79 billion for the three months ended September 30, 2020. The average balance of loans decreased $49.9 million, or 1.1 percent, to $4.68 billion for the three months ended September 30, 2021 from $4.73 billion for the three months ended September 30, 2020 due mainly to reductions in PPP loan balances driven by principal forgiveness. The average balance of securities increased $182.6 million, or 26.2 percent, to $878.9 million for the three months ended September 30, 2021 from $696.3 million for the three months ended September 30, 2020. Interest-bearing deposits at other banks increased $532.3 million to $872.8 million for the three months ended September 30, 2020, as increased marketing efforts and proceeds from government aid programs drove an increase in noninterest-bearing customer deposits.

The average yield on interest-earning assets, on a taxable equivalent basis, decreased 36 basis points to 3.41 percent for the three months ended September 30, 2021 from 3.77 percent for the three months ended September 30, 2020, mainly due to lower yields on securities and higher balances of lower yielding deposits at other banks. The average yield on loans increased to 4.49 percent for the three months ended September 30, 2021 from 4.42 percent for the three months ended September 30, 2020, reflecting the benefit from accelerated amortization of net deferred fees for forgiven PPP loans, which was offset partially by lower overall yields on non-PPP loan balances. The average yield on securities, on a taxable equivalent basis, decreased to 0.87 percent for the three months ended September 30, 2021 from 1.13 percent for the three months ended September 30, 2020 reflecting the low market interest rate environment.

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The average balance of interest-bearing liabilities increased $7.5 million, or 0.2 percent, to $3.52 billion for the three months ended September 30, 2021 compared to $3.51 billion for the three months ended September 30, 2020. The average cost of interest-bearing liabilities decreased by 44 basis points to 0.61 percent for the three months ended September 30, 2021 from 1.05 percent for the three months ended September 30, 2020. The decrease was due to lower market interest rates and a shift away from time deposits to lower-rate money market and savings accounts, offset by the increased interest expense associated with the issuance of $110.0 million of subordinated debt in August 2021.

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

	Nine Months Ended September 30,
	2021								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)	$	4,759,980		$	156,361		4.39	%	$	4,644,647		$	159,464		4.59	%
Securities (2)		822,282			4,409		0.73	%		636,860			8,852		1.85	%
FHLB stock		16,385			693		5.66	%		16,385			696		5.68	%
Interest-bearing deposits in other banks		644,521			601		0.12	%		277,698			495		0.24	%
Total interest-earning assets		6,243,168			162,064		3.47	%		5,575,590			169,507		4.06	%
Noninterest-earning assets:
Cash and due from banks		60,923								77,263
Allowance for credit losses		(86,970	)							(71,587	)
Other assets		225,687								223,675
Total assets	$	6,442,808							$	5,804,941
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	110,200		$	44		0.05	%	$	91,618		$	56		0.08	%
Money market and savings		2,011,242			3,984		0.26	%		1,712,121			9,281		0.72	%
Time deposits		1,144,942			5,391		0.63	%		1,445,763			19,327		1.79	%
Total interest-bearing deposits		3,266,384			9,419		0.39	%		3,249,502			28,664		1.18	%
Borrowings		147,924			1,332		1.20	%		211,976			1,839		1.16	%
Subordinated debentures		134,012			5,759		5.73	%		118,587			4,984		5.60	%
Total interest-bearing liabilities		3,548,320			16,510		0.62	%		3,580,065			35,487		1.32	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		2,221,373								1,595,368
Other liabilities		75,720								75,487
Stockholders' equity		597,395								554,021
Total liabilities and stockholders' equity	$	6,442,808							$	5,804,941
Net interest income (taxable equivalent basis)				$	145,554							$	134,020
Cost of deposits (3)							0.23	%							0.79	%
Net interest spread (taxable equivalent basis) (4)							2.85	%							2.74	%
Net interest margin (taxable equivalent basis) (5)							3.12	%							3.21	%

(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.

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

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

The table below shows changes in interest income (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.

	Nine Months Ended September 30,
	September 30, 2021 vs September 30, 2020
	Increases (Decreases) Due to Change In
	Volume			Rate			Total
	(in thousands)
Interest and dividend income:
Loans receivable (1)	$	3,918		$	(7,021	)	$	(3,103	)
Securities (2)		2,022			(6,465	)		(4,443	)
FHLB stock		—			(3	)		(3	)
Interest-bearing deposits in other banks		438			(332	)		106
Total interest and dividend income		6,378			(13,821	)		(7,443	)
Interest expense:
Demand: interest-bearing	$	10		$	(22	)	$	(12	)
Money market and savings		1,393			(6,690	)		(5,297	)
Time deposits		(3,387	)		(10,549	)		(13,936	)
Borrowings		(570	)		63			(507	)
Subordinated debentures		658			117			775
Total interest expense		(1,896	)		(17,081	)		(18,977	)
Change in net interest income	$	8,274		$	3,260		$	11,534

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

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

For the nine months ended September 30, 2021 and 2020, net interest income, on a taxable equivalent basis, was $145.6 million and $134.0 million, respectively. The net interest spread and net interest margin, on a taxable equivalent basis, for the nine months ended September 30, 2021 were 2.85 percent and 3.12 percent, respectively, compared with 2.74 percent and 3.21 percent, respectively, for the same period in 2020. Interest and dividend income, on a taxable equivalent basis, decreased $7.4 million, or 4.4 percent, to $162.1 million for the nine months ended September 30, 2021 from $169.5 million for the same period in 2020 as the impact of the lower rate environment was partially offset by higher loan, securities and interest-bearing deposits with other bank balances, offset by the increased interest expense associated with the issuance of $110.0 million of subordinated debt in August 2021. Interest expense decreased $19.0 million, or 53.5 percent, to $16.5 million for the nine months ended September 30, 2021 from $35.5 million for the same period in 2020 primarily due to a shift from time deposits of into lower yielding deposit accounts and lower rates paid on deposits.

The average balance of interest earning assets increased $667.6 million, or 12.0 percent, to $6.24 billion for the nine months ended September 30, 2021 from $5.58 billion for the nine months ended September 30, 2020. The average balance of loans increased $115.3 million, or 2.5 percent, to $4.76 billion for the nine months ended September 30, 2021 from $4.64 billion for the nine months ended September 30, 2020. The average balance of securities increased $185.4 million, or 29.1 percent, to $822.3 million for the nine months ended September 30, 2021 from $636.9 million for the nine months ended September 30, 2020. Interest-bearing deposits at other banks increased $366.8 million to $644.5 million as of September 30, 2021, as increased marketing efforts and proceeds from government aid programs drove an increase in non-interest bearing customer deposits.

The average yield on interest-earning assets, on a taxable equivalent basis, decreased 59 basis points to 3.47 percent for the nine months ended September 30, 2021 from 4.06 percent for the nine months ended September 30, 2020, mainly due to higher balances of lower yielding PPP loans and deposits at other banks, offset partially by the benefit from accelerated amortization of net deferred fees for forgiven PPP loans. The average yield on loans decreased to 4.39 percent for the nine months ended September 30, 2021 from 4.59 percent for the nine months ended September 30, 2020, primarily due to the low market interest rate environment. The average yield on securities, on a taxable equivalent basis, decreased to 0.73 percent for the nine months ended September 30, 2021 from 1.85 percent for the nine months ended September 30, 2020, attributable to the sale of most of the

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portfolio during the second quarter of 2020 and subsequently reinvesting into a portfolio of lower-yielding securities in the lower market interest rate environment.

The average balance of interest-bearing liabilities decreased $31.7 million, or 0.9 percent, to $3.55 billion for the nine months ended September 30, 2021 compared to $3.58 billion as of September 30, 2020, as the average cost of interest-bearing liabilities decreased by 70 basis points to 0.62 percent for the nine months ended September 30, 2021 from 1.32 percent for the nine months ended September 30, 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 third quarter of 2021, the Company recorded a $7.2 million recovery of credit loss expense, comprised of a $7.6 million negative provision for loan losses, a recovery of $450,000 from an SBA guarantee repair loss allowance, and a $369,000 reduction in the allowance for losses on accrued interest receivable for loans current or previously modified under the CARES Act, offset partially by a $1.2 provision for off-balance sheet items. For the same period in 2020, credit loss expense was $38,000, comprised of a loan loss provision of $697,000 and negative provision for off-balance sheet items of $658,000, reflecting unfavorable adjustments to assumptions about unemployment and economic activity and higher levels of unused commitments.

For the nine months ended September 30, 2021, the Company recorded a $8.5 million recovery of credit loss expense, comprised of a $10.8 million negative provision for loan losses and a $1.4 million reduction in the allowance for losses on accrued interest receivable for current or previously modified loans, offset partially by a $1.6 million provision for an SBA guarantee repair loss, and a $2.1 million provision for off-balance sheet items. For the same period in 2020, credit loss expense was $40.4 million, comprised of a loan loss provision of $36.7 million and provision for off-balance sheet items of $3.6 million, reflecting unfavorable adjustments to assumptions about unemployment and economic activity and higher levels of unused commitments.

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

Noninterest Income

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

	Three Months Ended September 30,				Increase (Decrease)
	2021		2020		Amount
	(in thousands)
Service charges on deposit accounts	$	3,437	$	2,002	$	1,435
Trade finance and other service charges and fees		1,188		972		216
Servicing income		768		704		64
Bank-owned life insurance income		251		289		(38	)
All other operating income		978		806		172
Service charges, fees & other		6,622		4,773		1,849
Gain on sale of SBA loans		5,503		2,324		3,179
Gain on sale of PPP loans		339		—		339
Net gain on sales of securities		—		—		—
Gain on sale of bank premises		45		43		2
Legal settlement		—		—		—
Total noninterest income	$	12,509	$	7,140	$	5,369

For the three months ended September 30, 2021, noninterest income was $12.5 million, an increase of $5.4 million, or 75.2 percent, compared with $7.1 million for the same period in 2020. The increase was primarily attributable to a $3.5 million increase in gains on sale of SBA and PPP loans and a $1.9 million increase in service charges and fees, which was driven by updates to the Company’s business deposit account fee schedules and enhanced operational practices that increased fee collections.

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

	Nine Months Ended September 30,				Increase (Decrease)
	2021		2020		Amount
	(in thousands)
Service charges on deposit accounts	$	8,036	$	6,434	$	1,602
Trade finance and other service charges and fees		3,468		2,920		548
Servicing income		2,154		2,120		34
Bank-owned life insurance income		759		842		(83	)
All other operating income		2,840		2,746		94
Service charges, fees & other		17,257		15,062		2,195
Gain on sale of SBA loans		10,478		3,478		7,000
Gain on sale of PPP loans		2,997		—		2,997
Net gain on sales of securities		99		15,712		(15,613	)
Gain on sale of bank premises		45		43		2
Legal settlement		325		—		325
Total noninterest income	$	31,201	$	34,295	$	(3,094	)

For the nine months ended September 30, 2021, noninterest income was $31.2 million, a decrease of $3.1 million, or 9.0 percent, compared with $34.3 million for the same period in 2020. The decrease was primarily attributable to a prior year $15.7 million gain on sale of securities, offset partially by a $10.0 million increase in gain on sales of SBA and PPP loans and a $2.2 million increase in services charges, trade finance and other fees attributable mostly to updates to the Company’s business deposit account fee schedules and enhanced operational practices that increased fee collections.

Noninterest Expense

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

	Three Months Ended September 30,						Increase (Decrease)
	2021			2020			Amount
	(in thousands)
Salaries and employee benefits	$	18,795		$	17,194		$	1,601
Occupancy and equipment		5,037			4,650			387
Data processing		2,934			2,761			173
Professional fees		1,263			1,794			(531	)
Supplies and communications		741			698			43
Advertising and promotion		953			594			359
All other operating expenses		2,906			2,349			557
Subtotal		32,629			30,040			2,589
Other real estate owned expense (income)		23			(116	)		139
Repossessed personal property expense (income)		(150	)		—			(150	)
Total noninterest expense	$	32,502		$	29,924		$	2,578

For the three months ended September 30, 2021, noninterest expense was $32.5 million, an increase of $2.6 million, or 8.6 percent, compared with $29.9 million for the same period in 2020. Salaries and benefits increased $1.6 million, as a $1.6 million increase in bonus and incentive expenses, a $600,000 increase in base salaries and wages, and a $150,000 increase in stock based compensation expense were offset partially by $800,000 in higher capitalized loan origination costs due to significantly higher loan production compared to the same period last year. A $359,000 increase in advertising and promotion expenses was primarily related to costs for the launch of a new marketing campaign, charitable donations and scholarships, and other promotional expenses, while a $387,000 increase in occupancy and equipment expenses was driven by purchases of office and technology equipment. A decrease in professional fees was offset by increases in all other operating expenses.

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

	Nine Months Ended September 30,						Increase (Decrease)
	2021			2020			Amount
	(in thousands)
Salaries and employee benefits	$	53,917		$	49,645		$	4,272
Occupancy and equipment		14,235			13,633			602
Data processing		8,775			8,233			542
Professional fees		4,123			5,255			(1,132	)
Supplies and communications		2,231			2,337			(106	)
Advertising and promotion		1,685			1,783			(98	)
All other operating expenses		7,889			7,550			339
Subtotal		92,855			88,436			4,419
Other real estate owned expense (income)		197			(305	)		502
Repossessed personal property expense (income)		(234	)		—			(234	)
Total noninterest expense	$	92,818		$	88,131		$	4,687

For the nine months ended September 30, 2021, noninterest expense was $92.8 million, an increase of $4.7 million, or 5.3 percent, compared with $88.1 million for the same period in 2020. Salaries and benefits increased $4.3 million, primarily related to a $4.1 million increase in bonus and incentives offset by a $371,000 decrease in capitalized loan origination costs primarily driven by prior year higher originations of PPP loans, offset partially by a decrease of $185,000 in lower employer taxes and employee benefit expense.

Income Tax Expense

Income tax expense was $10.7 million and $6.4 million representing an effective income tax rate of 28.6 percent and 28.3 percent for the three months ended September 30, 2021 and 2020, respectively. The increase in the effective tax rate for the three months ended September 30, 2021, compared to the same period in 2020 was principally due to a decrease of incremental tax charges related to the Company’s share-based compensation recognized as income tax expense.

Income tax expense was $27.0 million and $11.9 million representing an effective income tax rate of 29.3 percent and 30.0 percent for the nine months ended September 30, 2021 and 2020, respectively. The decrease in the effective tax rate for the nine months ended September 30, 2021, compared to the same period in 2020 was principally due to a decrease of incremental tax charges related to the Company’s share-based compensation recognized as income tax expense.

Financial Condition

Securities

As of September 30, 2021, our securities portfolio consisted of U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities, tax-exempt municipal bonds and, to a lesser extent, U.S. Treasury securities. Most of these securities carry fixed interest rates. Other than holdings of U.S. government agency and sponsored agency obligations, there were no securities of any one issuer exceeding 10 percent of stockholders’ equity as of September 30, 2021 or December 31, 2020.

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The following table summarizes the contractual maturity schedule for securities, at amortized cost, and their cost weighted average yield, which is calculated using amortized cost as the weight and tax-equivalent book yield, as of September 30, 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	$	—		0.00	%	$	4,948		0.97	%	$	—		0.00	%	$	—		0.00	%	$	4,948		0.97	%
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		631		1.80	%		3,852		0.90	%		1,507		1.05	%		635,266		1.01	%		641,256		1.01	%
Collateralized mortgage obligations		77		2.13	%		335		1.32	%		2,091		1.82	%		97,741		0.65	%		100,244		0.68	%
Debt securities		—		0.00	%		82,986		0.68	%		16,029		1.04	%		—		0.00	%		99,015		0.74	%
Total U.S. government agency and sponsored agency obligations		708		1.84	%		87,173		0.69	%		19,627		1.12	%		733,007		0.96	%		840,515		0.94	%
Municipal bonds-tax exempt		—		0.00	%		—		0.00	%		—		0.00	%		69,186		1.31	%		69,186		1.31	%
Total securities available for sale	$	708		1.84	%	$	92,121		0.70	%	$	19,627		1.12	%	$	802,193		1.00	%	$	914,649		0.97	%

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Loans Receivable

As of September 30, 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 $4.78 billion and $4.79 billion, respectively. The slight decrease primarily reflects $961.9 million in loan sales and payoffs, including $273.1 million in PPP loan forgiveness, as well as amortization and other reductions of $363.7 million, offset partially by $1.31 billion in new loan production.

During the nine months ended September 30, 2021, total loan production consisted of $503.6 million in commercial real estate loans, $188.6 million in leases receivable, $255.9 million in commercial and industrial loans, $244.7 million in SBA loans and $120.8 million in residential/consumer loans.

The table below shows the maturity distribution of outstanding loans as of September 30, 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	$	153,432	$	552,695	$	236,869	$	—	$	942,996
Hospitality		230,481		451,478		43,905		—		725,864
Other		221,336		1,078,106		375,551		108,484		1,783,477
Total commercial property loans		605,249		2,082,279		656,325		108,484		3,452,337
Construction		69,965		6,203		—		—		76,168
Residential/consumer loans		5,359		251		4,460		344,791		354,861
Total real estate loans		680,573		2,088,733		660,785		453,275		3,883,366
Commercial and industrial loans		305,050		128,556		82,751		—		516,357
Leases receivable		19,861		397,631		41,650		—		459,142
Loans receivable	$	1,005,484	$	2,614,920	$	785,186	$	453,275	$	4,858,865
Loans with predetermined interest rates	$	436,529	$	1,829,006	$	177,669	$	88,929	$	2,532,133
Loans with variable interest rates		568,955		785,914		607,517		364,346		2,326,732

Industry

As of September 30, 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
	September 30, 2021		Outstanding
	(in thousands)
Lessor of nonresidential buildings	$	1,574,860		32.4	%
Hospitality		787,561		16.2	%

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Loan Quality Indicators

Loans and leases 30 to 89 days past due and still accruing were 0.12 percent of loans and leases at September 30, 2021, compared with 0.19 percent at December 31, 2020.

At September 30, 2021, loans 90 days or more past due and still accruing were $13,000. No loans were 90 days or more past due and still accruing at December 31, 2020.

Special mention loans were $130.6 million at September 30, 2021 compared with $77.0 million at December 31, 2020. The change reflects additions of $117.9 million and reductions (comprising upgrades, downgrades and payments) of $64.3 million. At September 30, 2021 and December 31, 2020, special mention loans included $76.6 million and $49.1 million, respectively, of loans identified as adversely affected by the pandemic.

Classified loans were $82.4 million at September 30, 2021 compared with $140.2 million at December 31, 2020. The change reflects additions of $42.3 million and reductions (comprising upgrades, payments, sales, and charge-offs) of $100.1 million. At September 30, 2021 and December 31, 2020, classified loans included $40.4 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 September 30, 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 borrowers may adversely affect a borrower’s ability to pay.

Nonperforming loans were $21.2 million at September 30, 2021, or 0.44 percent of loans, compared with $83.0 million at December 31, 2020, or 1.70 percent of the portfolio. The change reflects additions of $4.8 million and reductions (comprising upgrades, payments, sales, and charge-offs) of $66.6 million. At September 30, 2021 and December 31, 2020, nonperforming loans included $5.4 million and $33.0 million, respectively, of loans adversely affected by the pandemic.

Nonperforming assets were $21.9 million at September 30, 2021, or 0.32 percent of total assets, compared with $85.4 million, or 1.38 percent, at December 31, 2020.

Loans modified under the CARES Act declined to $12.0 million at September 30, 2021 from $155.6 million at December 31, 2020. At September 30, 2021, all modified loans are making interest only or other reduced payments that are less than the contractually required amount. At December 31, 2020, 13.6 percent, or $21.1 million, were not making payments. Of the modified loan portfolio, at September 30, 2021, 53.3 percent were special mention and 25.0 percent were classified, compared with 20.1 percent and 15.7 percent at December 31, 2020, respectively. In addition, 11.7 percent and 4.6 percent were on nonaccrual status at September 30, 2021 and December 31, 2020, respectively.

Individually Evaluated Loans

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

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Individually evaluated loans were $21.2 million and $91.0 million as of September 30, 2021 and December 31, 2020, respectively, representing a decrease of $69.8 million, or 76.7 percent. Specific allowances associated with individually evaluated loans decreased $11.8 million to $2.2 million as of September 30, 2021 compared with $14.0 million as of December 31, 2020.

For the three and nine months ended September 30, 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 September 30, 2021 and December 31, 2020, TDRs on an accrual status were $571,000 and $7.9 million, respectively, most of which were deferral of principal. The allowance for credit losses relating to these loans was inconsequential. As of September 30, 2021 and December 31, 2020, restructured loans on nonaccrual status were $10.7 million and $17.1 million, respectively, and the allowance for credit losses relating to these loans, respectively, was inconsequential.

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

The Company’s estimate of the allowance for credit losses at September 30, 2021 and December 31, 2020 reflected losses expected over the remaining contractual life of the assets based on historical, current, and forward-looking information. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring.

Management selected three loss methodologies for the collective allowance estimation. At September 30, 2021, the Company used the discounted cash flow (“DCF”) method to estimate allowances for credit losses for the commercial and industrial loan portfolio, the Probability of Default/Loss Given Default (“PD/LGD”) method for the commercial property, construction and residential property portfolios, and the Weighted Average Remaining Maturity (“WARM”) method to estimate expected credit losses for equipment financing agreements and 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 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 applied an expected loss ratio based on internal historical losses adjusted as appropriate for qualitative factors when applying the WARM method.

As of September 30, 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. 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 $76.6 million at September 30, 2021 compared with $90.4 million at December 31, 2020. The allowance attributed to individually evaluated loans was $2.2 million at September 30, 2021 compared with $14.0 million at December 31, 2020. The allowance attributed to collectively evaluated loans was $74.4 million at September 30, 2021 compared with $76.4 million at December 31, 2020, and considered the impact of changes in macroeconomic assumptions,

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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 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:

	September 30, 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	$	5,294	$	942,996		19.4	%	$	4,855	$	824,606		16.9	%
Hospitality		29,600		725,864		14.9	%		28,801		859,953		17.6	%
Other		12,842		1,783,477		36.7	%		13,991		1,610,377		33.0	%
Total commercial property loans		47,736		3,452,337		71.0	%		47,647		3,294,936		67.5	%
Construction		7,565		76,168		1.6	%		2,876		58,882		1.2	%
Residential/consumer loans		762		354,861		7.3	%		1,353		345,831		7.1	%
Total real estate loans		56,063		3,883,366		79.9	%		51,876		3,699,649		75.8	%
Commercial and industrial loans		8,710		516,357		10.6	%		21,410		757,255		15.5	%
Leases receivable		11,840		459,142		9.5	%		17,140		423,264		8.7	%
Total	$	76,613	$	4,858,865		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
	September 30, 2021			December 31, 2020
	(in thousands)
Ratios:
Allowance for credit losses to loans receivable		1.58	%		1.85	%
Nonaccrual loans to loans		0.44	%		1.70	%
Allowance for credit losses to nonaccrual loans		360.96	%		108.90	%
Balance:
Nonaccrual loans at end of period	$	21,225		$	83,033
Nonperforming loans at end of period	$	21,238		$	83,033

As of September 30, 2021 and December 31, 2020, the allowance for credit losses related to off-balance sheet items, primarily unfunded loan commitments, was $4.9 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 September 30, 2021.

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

	Three Months Ended								Nine Months Ended
	Average Loans		Net Charge-Offs (Recoveries)			Net Charge-Offs (Recoveries) to Average Loans (1)			Average Loans		Net Charge-Offs (Recoveries)			Net Charge-Offs (Recoveries) to Average Loans (1)
	(in thousands)
September 30, 2021
Real estate loans	$	3,766,975	$	(1,162	)		(0.12	)%	$	3,732,490	$	(106	)		(0.00	)%
Commercial and industrial loans		478,861		(144	)		(0.12	)%		604,355		(52	)		(0.01	)%
Leases receivable		438,734		441			0.40	%		423,135		3,199			1.01	%
Total	$	4,684,570	$	(865	)		(0.07	)%	$	4,759,980	$	3,041			0.09	%
September 30, 2020
Real estate loans	$	3,596,573	$	(810	)		(0.09	)%	$	3,589,052	$	13,267			0.49	%
Commercial and industrial loans		688,385		348			0.20	%		580,874		12,793			2.94	%
Leases receivable		449,554		868			0.77	%		474,722		2,905			0.82	%
Total	$	4,734,512	$	406			0.03	%	$	4,644,648	$	28,965			0.83	%

⁽¹⁾ Annualized

For the three months ended September 30, 2021, gross charge-offs were $1.0 million, a decrease of $1.2 million, from $2.2 million for the same period in 2020 and recoveries were $1.8 million, an increase of $97,000, from $1.7 million for the three months ended September 30, 2020. Net loan recoveries were $865,000, or (0.07) percent of average loans, compared with net loan charge-offs of $406,200, or 0.03 percent of average loans, for the three months ended September 30, 2021 and 2020, respectively.

For the nine months ended September 30, 2021, gross charge-offs were $5.9 million, a decrease of $25.3 million, or 81.0 percent, from $31.2 million for the same period in 2020 and recoveries were $2.9 million, an increase of $660,000, from $2.2 million for the nine months ended September 30, 2020. Net loan charge-offs were $3.0 million, or 0.09 percent of average loans, compared with $29.0 million, or 0.83 percent of average loans, for the nine months ended September 30, 2021 and 2020, respectively.

Deposits

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

	September 30, 2021					December 31, 2020
	Balance		Percent			Balance		Percent
	(dollars in thousands)
Demand – noninterest-bearing	$	2,548,591		44.5	%	$	1,898,766		36.0	%
Interest-bearing:
Demand		118,334		2.1	%		100,617		1.9	%
Money market and savings		2,033,000		35.5	%		1,991,926		37.8	%
Uninsured time deposits of more than $250,000:
Three months or less		97,570		1.7	%		134,543		2.6	%
Over three months through six months		59,648		1.0	%		70,011		1.3	%
Over six months through twelve months		30,471		0.5	%		52,401		1.0	%
Over twelve months		533		0.0	%		8,633		0.2	%
Other time deposits		841,389		14.7	%		1,018,111		19.3	%
Total deposits	$	5,729,536		100.0	%	$	5,275,008		100.0	%

Total deposits were $5.73 billion and $5.28 billion as of September 30, 2021 and December 31, 2020, respectively, representing an increase of $454.5 million, or 8.6 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 September 30, 2021, the loan-to-deposit ratio was 84.8 percent compared with 92.5 percent at December 31, 2020. The increase in noninterest-bearing deposits reflects growth from new and existing customer relationships as well as increases from second draw PPP loans and other economic stimulus activities.

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As of September 30, 2021, the aggregate amount of uninsured deposits (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) was $2.53 billion, of which $2.34 billion were demand deposits and money market and savings deposits and $188.2 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 September 30, 2021 and December 31, 2020, total advances from the FHLB were $137.5 million and $150.0 million, respectively. The Bank had no overnight advances from the FHLB at both September 30, 2021 and December 31, 2020.

The weighted-average interest rate of all FHLB advances at September 30, 2021 and December 31, 2020 were 1.05 percent and 1.40 percent, respectively, and weighted-average interest rate of FHLB advances for the nine months ended September 30, 2021 and December 31, 2020 were 1.20 percent and 1.42 percent, respectively. Average balances of FHLB advances for the three months ended September 30, 2021 and December 31, 2020 were $147.9 million and $156.6 million, respectively, with maximum amount outstanding at any month end during the three months period ended September 30, 2021 and December 31, 2020 of $150.0 million and $300.0 million, respectively. Interest expense on borrowings for the three months ended September 30, 2021 and 2020 was $409,000 and $582,000, respectively. Interest expense on borrowings for the nine months ended September 30, 2021 and 2020 was $1.3 million and $1.8 million, respectively.

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

	September 30, 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		0.97	%	$	50,000		1.62	%
Advances due over 24 months through 36 months		37,500		0.40	%		50,000		0.97	%
Outstanding advances over 12 months	$	87,500		0.73	%	$	100,000		1.30	%

Subordinated debentures were $214.8 million as of September 30, 2021 and $119.0 million as of December 31, 2020. Subordinated debentures are comprised of fixed-to-floating subordinated notes of $194.1 million and $98.5 million as of September 30, 2021 and December 31, 2020, respectively, and junior subordinated deferrable interest debentures of $20.7 million and $20.4 million as of September 30, 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 September 30, 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.

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	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%	$	38,320			19.15	%	$	53,359			27.10	%
200%	$	25,509			12.75	%	$	35,697			18.13	%
100%	$	13,097			6.54	%	$	19,066			9.68	%
(100%)	$	(10,547	)		(5.27	%)	$	(18,283	)		(9.29	%)

Change in	Economic Value of Equity (EVE)
Interest	Dollar			Percentage
Rate	Change			Change
	(dollars in thousands)
300%	$	179,878			33.72	%
200%	$	132,512			24.84	%
100%	$	79,424			14.89	%
(100%)	$	(155,157	)		(29.08	%)

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.

Capital Resources and Liquidity

Capital Resources

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

In response to the uncertainty surrounding the COVID-19 pandemic, the Board reduced the quarterly cash dividends paid on common stock beginning in the second quarter of 2020. For the third and fourth quarters of 2020, cash dividends paid were $0.08 per share, down 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. Due to the continued stabilization of Company results and financial condition, the Board authorized an increase in the quarterly cash dividend to $0.12 per share for the second quarter of 2021. As the effects of the pandemic continue to subside and the Company’s results and financial condition improved, the Board again increased the dividend for the fourth quarter of 2021 to $0.20 per share. The Board expects to continue to re-evaluate the level of quarterly dividends in subsequent quarters.

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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 October 1, 2021, after giving effect to the 2021 fourth quarter dividend declared by the Company, the Bank has no remaining ability to pay dividends in 2021 without the prior approval of the Commissioner of the DFPI. The Bank will have the ability to pay dividends of approximately $100.0 million without the prior approval of the Commissioner at the beginning of its 2022 fiscal year.

At September 30, 2021, the Bank’s total risk-based capital ratio of 15.17 percent, Tier 1 risk-based capital ratio of 13.91 percent, common equity Tier 1 capital ratio of 13.91 percent and Tier 1 leverage capital ratio of 10.86 percent, placed the Bank in the “well capitalized” category pursuant to capital rules, which is defined as institutions with total risk-based capital ratio equal to or greater than 10.00 percent, Tier 1 risk-based capital ratio equal to or greater than 8.00 percent, common equity Tier 1 capital ratios equal to or greater than 6.50 percent, and Tier 1 leverage capital ratio equal to or greater than 5.00 percent.

At September 30, 2021, the Company's total risk-based capital ratio was 17.18 percent, Tier 1 risk-based capital ratio was 12.18 percent, common equity Tier 1 capital ratio was 11.78 percent and Tier 1 leverage capital ratio was 9.50 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 e - 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.

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.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Management is responsible for the disclosure controls and procedures of the Corporation. Disclosure controls and procedures are controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods required by the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be so disclosed by an issuer is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of the Corporation’s management, including the Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), of the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures. Based on that evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of September 30, 2021.

Changes in Internal Control over Financial Reporting

There were no changes in the Corporation's internal control over financial reporting (as defined in Rule 13a-15(f)) during the quarter ended September 30, 2021 that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

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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 described in “Risk Factors” in Part II, item 1A of the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 and in “Risk Factors” in Part I, Item 1A of the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 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 September 30, 2021, 684,680 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 share repurchases noted in the table below, the Company acquired 27,639 shares from employees in connection with the satisfaction of employee tax withholding obligations incurred through vesting of Company stock awards for the nine months ended September 30, 2021.

The following table represents information with respect to repurchases of common stock made by the Company during the three months ended September 30, 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
July 1, 2021 - July 31, 2021	$	—		—		934,600
August 1, 2021 - August 31, 2021	$	19.20		40,000		894,600
September 1, 2021 - September 30, 2021	$	18.68		209,920		684,680
Total	$	18.76		249,920		684,680

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
10.1	Form of Restricted Stock Agreement for the Hanmi Financial Corporation 2021 Equity Compensation Plan
10.2	Form of Performance Share Unit Agreement for the Hanmi Financial Corporation 2021 Equity Compensation Plan
10.3	Form of Non-Qualified Stock Option Agreement for the Hanmi Financial Corporation 2021 Equity Compensation Plan
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document *
101.SCH	Inline XBRL Taxonomy Extension Schema Document *
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document *
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document *
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document *
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document *
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 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.

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Signatures

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

		Hanmi Financial Corporation
Date:	November 8, 2021	By:	/s/ Bonita I. Lee
			Bonita I. Lee
			President and Chief Executive Officer (Principal Executive Officer)

Date:	November 8, 2021	By:	/s/ Romolo C. Santarosa
			Romolo C. Santarosa
			Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)

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EX-10.1

Exhibit 10.1

HANMI FINANCIAL CORPORATION

RESTRICTED STOCK AGREEMENT

FOR

[NAME]

1.Award of Restricted Stock

.  The Committee hereby grants, as of [DATE] (“Date of Grant”), to [NAME] (the “Recipient”), [NUMBER]restricted shares of the Company’s common stock (collectively the “Restricted Stock”).  The Restricted Stock shall be subject to the terms, provisions and restrictions set forth in this Agreement and the Hanmi Financial Corporation 2021 Equity Compensation Plan (the “Plan”), which is incorporated herein for all purposes.  As a condition to entering into this Agreement, and as a condition to the issuance of any Restricted Stock (or any other securities of the Company), the Recipient agrees to be bound by all of the terms and conditions herein and in the Plan.  Unless otherwise provided herein, capitalized terms used herein that are defined in the Plan and not defined herein shall have the meanings attributable thereto in the Plan.

2.Vesting of Restricted Stock.

(a)General Vesting.  

The shares of Restricted Stock shall become vested in the following amounts and at the following times, provided that the Continuous Service of the Recipient continues through and on the applicable Vesting Date:

Number of Shares of Restricted Stock	Vesting Date
33%
33%
34%

Except as otherwise provided in Sections 2(b), 2(c) and 4 hereof, there shall be no proportionate or partial vesting of shares of Restricted Stock in or during the months, days or periods prior to each Vesting Date, and all vesting of shares of Restricted Stock shall occur only on the applicable Vesting Date.

(b)Acceleration of Vesting Upon Termination without Cause or for Good Reason Coincident with or Following a Change in Control.  

In the event that a Change in Control of the Company occurs during the Recipient’s Continuous Service coincident with or followed by the Recipient’s termination without Cause or resignation for Good Reason (as defined below), the shares of Restricted Stock subject to this Agreement shall become immediately and fully vested as of the date of the Recipient’s termination of Continuous Service.  For these purposes, “Good Reason” shall have the equivalent meaning or the same meaning as “good reason” or “for good reason” set forth in any employment, consulting or other agreement for the performance of services between the Recipient and the Company or a Related Entity or, in the absence of any such agreement or any such definition in such agreement, such term shall mean: (i) the assignment to the Recipient of any duties inconsistent in any material respect with the Recipient's duties or responsibilities as assigned by the Company or a Related Entity, or any other action by the Company or a Related Entity which results in a material diminution in such duties or responsibilities, excluding for this purpose an action which is remedied by the Company or a Related Entity promptly after

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receipt of notice thereof given by the Recipient; (ii) any material failure by the Company or a Related Entity to comply with its obligations to the Recipient as agreed upon, other than a failure which is remedied by the Company or a Related Entity promptly after receipt of notice thereof given by the Recipient; or (iii) the Company's or Related Entity’s requiring the Recipient to be based at any office or location outside of fifty (50) miles from the location of employment or service as of the date of Award, except for travel reasonably required in the performance of the Recipient’s responsibilities.

(c)

(d)Definitions.  

For purposes of this Agreement, the following terms shall have the meanings indicated:

(i)“Non-Vested Shares” means any portion of the Restricted Stock subject to this Agreement that has not become vested pursuant to this Section 2.

(ii)“Vested Shares” means any portion of the Restricted Stock subject to this Agreement that is and has become vested pursuant to this Section 2.

3.Delivery of Restricted Stock

.  

(a)Issuance of Restricted Stock.  

The Restricted Stock subject to this Award shall be issued in book-entry form in the name of the Recipient but shall be deemed held and retained by the Company until the date (the “Applicable Date”) on which the shares (or a portion thereof) subject to this Restricted Stock award become Vested Shares pursuant to Section 2 hereof, subject to the provisions of Section 4 hereof.  

(b)Stock Powers.  

The Recipient hereby irrevocably appoints the Secretary of the Company as the Recipient’s attorney-in-fact, with full power of appointment and substitution, to execute and deliver any such power or other instrument which may be necessary to effectuate the transfer of the Restricted Stock (or assignment of distributions thereon) on the books and records of the Company.  

(c)Delivery of Vested Shares.  

On or after each Applicable Date, upon written request to the Company by the Recipient, the Company shall promptly cause a certificate or certificates to be issued for and with respect to all shares that become Vested Shares on that Applicable Date, which certificate(s) shall be delivered to the Recipient as soon as administratively practicable after the date of receipt by the Company of the Recipient’s written request.  Notwithstanding the foregoing, the Vested Shares may nevertheless be issued on a non-certificated basis.  To the extent certificated, the new certificate or certificates shall bear those legends and endorsements, if any, that the Company shall deem necessary or appropriate (including those relating to restrictions on transferability and/or obligations and restrictions under the United States securities laws).  For as long as an account is maintained in the Recipient’s name with a broker, custodian, or other institution retained by the Company to assist in the administration of the Plan, such Vested Shares may be deposited into such account.

4.Forfeiture of Non-Vested Shares

.  If the Recipient’s Continuous Service with the Company and the Related Entities is terminated for any reason, any Shares of Restricted Stock that are not Vested Shares, and that do not become Vested Shares pursuant to Section 2 hereof as a result of such termination, shall be forfeited immediately upon such termination of Continuous Service and revert back to the Company without any payment to the Recipient.  If the Recipient breaches any applicable restrictions set forth in this Agreement or in the Plan, all Non-Vested Shares (and upon written demand by the Company, in its sole and absolute discretion, any Vested Shares) shall be forfeited immediately upon such breach and revert or be transferred by the Recipient back to the Company without any payment to the Recipient.  The Committee

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shall have the power and authority to enforce on behalf of the Company any rights of the Company under this Agreement in the event of the Recipient’s forfeiture of Non-Vested Shares pursuant to this Section 4.

5.Rights with Respect to Restricted Stock.

(a)General.  

Except as otherwise provided in this Agreement, the Recipient shall have, with respect to all of the shares of Restricted Stock, whether Vested Shares or Non-Vested Shares, all of the rights of a holder of shares of common stock of the Company, including without limitation (i) the right to vote such Restricted Stock, (ii) the right to receive dividends, if any, as may be declared on the Restricted Stock from time to time, and (iii) the rights available to all holders of shares of common stock of the Company upon any merger, consolidation, reorganization, liquidation or dissolution, stock split, stock dividend or recapitalization undertaken by the Company; provided, however, that all of such rights shall be subject to the terms, provisions, conditions and restrictions set forth in this Agreement (including without limitation conditions under which all such rights shall be forfeited).   Any Shares issued to the Recipient as a dividend with respect to shares of Restricted Stock shall have the same status and bear the same legend as the shares of Restricted Stock and shall be held by the Company, if the shares of Restricted Stock that such dividend is attributed to is being so held, unless otherwise determined by the Committee.  In addition, notwithstanding any provision to the contrary herein, any cash dividends declared with respect to shares of Restricted Stock subject to this Agreement whether Vested Shares or Non-Vested Shares shall be paid directly to the Recipient at such time as the cash dividends are paid to all such holders of the Company’s common stocks.

(b)Adjustments to Shares.  

If at any time while this Agreement is in effect (or Shares granted hereunder shall be or remain unvested while Recipient’s Continuous Service continues and has not yet terminated or ceased for any reason), there shall be any increase or decrease in the number of issued and outstanding Shares of the Company through the declaration of a stock dividend or through any recapitalization resulting in a stock split, combination or exchange of such Shares, then and in that event, the Board or the Committee shall make any adjustments it deems fair and appropriate, in view of such change, in the number of shares of Restricted Stock then subject to this Agreement.  If any such adjustment shall result in a fractional Share, such fraction shall be disregarded.

(c)No Restrictions on Certain Transactions.  

Notwithstanding any term or provision of this Agreement to the contrary, the existence of this Agreement, or of any outstanding Restricted Stock awarded hereunder, shall not affect in any manner the right, power or authority of the Company to make, authorize or consummate: (i) any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business; (ii) any merger, consolidation or similar transaction by or of the Company; (iii) any offer, issue or sale by the Company of any capital stock of the Company, including any equity or debt securities, or preferred or preference stock that would rank prior to or on parity with the Restricted Stock and/or that would include, have or possess other rights, benefits and/or preferences superior to those that the Restricted Stock includes, has or possesses, or any warrants, options or rights with respect to any of the foregoing; (iv) the dissolution or liquidation of the Company; (v) any sale, transfer or assignment of all or any part of the stock, assets or business of the Company; or (vi) any other corporate transaction, act or proceeding (whether of a similar character or otherwise).

6.Transferability

.  Unless otherwise determined by the Committee, the shares of Restricted Stock are not transferable unless and until they become Vested Shares in accordance with this Agreement, otherwise than by will or under the applicable laws of descent and distribution.  The terms of this Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Recipient.  Except as otherwise permitted pursuant to the first sentence of this Section, any attempt to effect a Transfer of any shares of Restricted Stock prior to the date on which the shares become Vested Shares shall be void abinitio.  For purposes of this Agreement, “Transfer” shall mean any sale, transfer, encumbrance, gift,

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donation, assignment, pledge, hypothecation, or other disposition, whether similar or dissimilar to those previously enumerated, whether voluntary or involuntary, and including, but not limited to, any disposition by operation of law, by court order, by judicial process, or by foreclosure, levy or attachment.

7.Tax Matters; Section 83(b) Election.

(a)Section 83(b) Election.  

If the Recipient properly elects, within thirty (30) days of the Date of Grant, to include in gross income for federal income tax purposes an amount equal to the fair market value (as of the Date of Grant) of the Restricted Stock pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), a form of which is attached hereto as Exhibit A, the Recipient shall make arrangements satisfactory to the Company to pay to the Company any federal, state or local income taxes required to be withheld with respect to the Restricted Stock.  If the Recipient shall fail to make such tax payments as are required, the Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind (including without limitation, the withholding of any Shares that otherwise would be issued to the Recipient under this Agreement) otherwise due to the Recipient any federal, state or local taxes of any kind required by law to be withheld with respect to the Restricted Stock.

(b)No Section 83(b) Election.  

If the Recipient does not properly make the election described in paragraph 7(a) above, the Recipient shall, no later than the date or dates as of which the restrictions referred to in this Agreement hereof shall lapse, pay to the Company, or make arrangements satisfactory to the Committee for payment of, any federal, state or local taxes of any kind required by law to be withheld with respect to the Restricted Stock (including without limitation the vesting thereof), and the Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind (including without limitation, the withholding of any Shares that otherwise would be distributed to the Recipient under this Agreement) otherwise due to Recipient any federal, state, or local taxes of any kind required by law to be withheld with respect to the Restricted Stock.

(c)Recipient’s Responsibilities for Tax Consequences

.  Tax consequences on the Recipient (including without limitation federal, state, local and foreign income tax consequences) with respect to the Restricted Stock (including without limitation the grant, vesting and/or forfeiture thereof) are the sole responsibility of the Recipient.  The Recipient shall consult with his or her own personal accountant(s) and/or tax advisor(s) regarding these matters, the making of a Section 83(b) election, and the Recipient’s filing, withholding and payment (or tax liability) obligations.

8.Amendment, Modification and Assignment; Non-Transferability

. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board; provided, however, that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the Restricted Stock award in any material way without the prior written consent of the Recipient.  No promises, assurances, commitments, agreements, undertakings or representations, whether oral, written, electronic or otherwise, and whether express or implied, with respect to the subject matter hereof, have been made by either party which are not set forth expressly in this Agreement.  Unless otherwise consented to in writing by the Company, in its sole discretion, this Agreement (and Recipient’s rights hereunder) may not be assigned, and the obligations of Recipient hereunder may not be delegated, in whole or in part.  The rights and obligations created hereunder shall be binding on the Recipient and his or her heirs and legal representatives and on the successors and assigns of the Company.

9.Complete Agreement

.  This Agreement (together with those agreements and documents expressly referred to herein, for the purposes referred to herein) embody the complete and entire agreement and understanding between the parties with respect to the subject matter hereof, and supersede any and all prior promises, assurances, commitments, agreements, undertakings or representations, whether oral, written,

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electronic or otherwise, and whether express or implied, which may relate to the subject matter hereof in any way.

10.Interpretation / Provisions of Plan Control

.  This Agreement is subject to all the terms, conditions and provisions of the Plan, including, without limitation, the amendment provisions thereof, and to such rules, regulations and interpretations relating to the Plan adopted by the Committee as may be in effect from time to time.  If and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly.  

11.Clawback Policy. Notwithstanding any other provision of this Agreement to the contrary, any  Share of Restricted Stock granted hereunder or any Vested Shares issued, and/or any amount received with respect to any sale of any Vested Shares, as well as any cash dividends received hereunder, to the extent authorized under this Agreement, shall be subject to potential cancellation, recoupment, rescission, payback or other action in accordance with the terms of any clawback policy of the Company as set forth in the Plan or as otherwise may be in effect from time to time (the "Policy").  The Recipient agrees and consents to the Company's application, implementation and enforcement of (a) the Policy and (b) any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation, and expressly agrees that the Company may take such actions as are necessary to effectuate the Policy, any similar policy (as applicable to the Recipient) or any amendments that may from be made from time to time in the future by the Company in its discretion without further consent or action being required by the Recipient. To the extent that the terms of this Agreement and the Policy or any similar policy conflict, then the terms of such policy shall prevail.

12.Miscellaneous.

(a)No Right to (Continued) Employment or Service

.  This Agreement and the grant of Restricted Stock hereunder shall not confer, or be construed to confer, upon the Recipient any right to employment or service, or continued employment or service, with the Company or any Related Entity.

(b)No Limit on Other Compensation Arrangements

.  Nothing contained in this Agreement shall preclude the Company or any Related Entity from adopting or continuing in effect other or additional compensation plans, agreements or arrangements, and any such plans, agreements and arrangements may be either generally applicable or applicable only in specific cases or to specific persons.

(c)Severability

.  If any term or provision of this Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or under any applicable law, rule or regulation, then such provision shall be construed or deemed amended to conform to applicable law (or if such provision cannot be so construed or deemed amended without materially altering the purpose or intent of this Agreement and the grant of Restricted Stock hereunder, such provision shall be stricken as to such jurisdiction and the remainder of this Agreement and the award hereunder shall remain in full force and effect).

(d)No Trust or Fund Created

.  Neither this Agreement nor the grant of Restricted Stock hereunder shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Related Entity and the Recipient or any other person.  To the extent that the Recipient or any other person acquires a right to receive payments from the Company or any Related Entity pursuant to this Agreement, such right shall be no greater than the right of any unsecured general creditor of the Company.

(e)Law Governing

.  This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware (without reference to the conflict of laws rules or principles thereof).

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(f)Interpretation

.  The Recipient accepts the Restricted Stock subject to all of the terms, provisions and restrictions of this Agreement and the Plan.  The undersigned Recipient hereby accepts as binding, conclusive and final all decisions or interpretations of the Board or the Committee upon any questions arising under this Agreement or the Plan.  

(g)Headings

.  Section, paragraph and other headings and captions are provided solely as a convenience to facilitate reference.  Such headings and captions shall not be deemed in any way material or relevant to the construction, meaning or interpretation of this Agreement or any term or provision hereof.

(h)Notices

.  Any notice under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or when deposited in the United States mail, registered, postage prepaid, and addressed, in the case of the Company, to the Company’s Secretary at 900 Wilshire Boulevard, Suite 1250, Los Angeles, CA 90017, or if the Company should move its principal office, to such principal office, and, in the case of the Recipient, to the Recipient’s last permanent address as shown on the Company’s records, subject to the right of either party to designate some other address at any time hereafter in a notice satisfying the requirements of this Section.

(i)Non-Waiver of Breach

.  The waiver by any party hereto of the other party’s prompt and complete performance, or breach or violation, of any term or provision of this Agreement shall be effected solely in a writing signed by such party, and shall not operate nor be construed as a waiver of any subsequent breach or violation, and the waiver by any party hereto to exercise any right or remedy which such party may possess shall not operate nor be construed as the waiver of such right or remedy by such party, or as a bar to the exercise of such right or remedy by such party, upon the occurrence of any subsequent breach or violation.  

(j)Spouse.  If the Recipient has a spouse as of the Date of Grant, the Recipient’s spouse shall execute a Consent of Spouse in the form of Exhibit B hereto, effective as of the date hereof.  Such consent shall not be deemed to confer or convey to the spouse any rights in the Restricted Stock that do not otherwise exist by operation of law or the agreement of the parties.  If the Recipient subsequent to the date hereof, marries or remarries, the Recipient shall, not later than 60 days thereafter, obtain his or her new spouse’s acknowledgement of and consent to the existence and binding effect of all restrictions contained in this Agreement by having such spouse execute and deliver a Consent of Spouse in the form of Exhibit B.

(k)Counterparts

.  This Agreement may be executed in two or more separate counterparts, each of which shall be an original, and all of which together shall constitute one and the same agreement.

[Signature page follows]

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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of [DATE].

COMPANY:

HANMI FINANCIAL CORPORATION  

By:  

Name:

Title:

Agreed and Accepted:

RECIPIENT:

By:  __________________________________

[NAME]

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EXHIBIT A

IF YOU WISH TO MAKE A SECTION 83(B) ELECTION, THE FILING OF SUCH ELECTION IS YOUR RESPONSIBILITY.

YOU MUST FILE THe election FORM below WITHIN 30 DAYS OF THE DATE of grant.

it is your responsibility to file this form WITH THE Internal Revenue Service, regardless of whether YOU ask the company or its agents to make this filing on YOUR behalf, even if the company or its agents have previously made this filing on YOUR Behalf.

The election should be filed by mailing a signed election form by certified mail, return receipt requested to the IRS Service Center where you file your tax returns.

Seewww.irs.gov

ELECTION UNDER SECTION 83(b)

OF THE U.S. INTERNAL REVENUE CODE OF 1986

The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in taxpayer’s gross income for the current taxable year the amount of any compensation taxable to taxpayer in connection with his or her receipt of the property described below:

1. The name, address, taxpayer identification number and taxable year of the undersigned are as follows:

Name:

Spouse:

Taxpayer I.D. No.:

Address:

Tax Year:

2.The property with respect to which the election is made is described as follows: [NUMBER] shares of the common stock (“Common Shares”) of Hanmi Financial Corporation (the “Company”).

3. The date on which the property was transferred is ______________, 20.

4. The property is subject to the following restrictions:

The Common Shares are required to be returned to the Company in the event that the undersigned ceases to perform services for the Company through certain dates specified in the Restricted Stock Agreement between me and the Company dated as of [DATE].  This right lapses with regard to a portion of the Common Shares based on my Continuous Service as an Employee, Consultant or Director over time.

5. The fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never lapse, of such property is:  $______________________.

6. The amount (if any) paid for such property is:  ZERO.

The undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with the undersigned’s receipt of the above-described property.  The transferee of such property is the person performing the services in connection with the transfer of said property.  The undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner.

Dated:   ___________________, 20_______________________________________

Signature of Taxpayer

The undersigned spouse of taxpayer joins in this election.

Dated:   ___________________, 20 _______________________________________

Spouse of Taxpayer

EXHIBIT B

CONSENT OF SPOUSE

I, ____________________, spouse of [NAME], have read and approve the foregoing Restricted Stock Agreement (the “Agreement”).  In consideration of the Company’s grant to my spouse of the shares of common stock of Hanmi Financial Corporation as set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights under the Agreement and agree to be bound by the provisions of the Agreement insofar as I may have any rights in said Agreement or any shares of common stock issued pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state or country of our residence as of the date of the signing of the foregoing Agreement.

Dated:  _______________, 20

                                     ________________________________________

                                     Signature of Spouse

Print Name:  ______________________________

EX-10.2

Exhibit 10.2

HANMI FINANCIAL CORPORATION

Performance Share UNIT AGREEMENT

FOR

NAME

1.Award of Performance Share Units

.  The Committee hereby grants to Name (the “Recipient”), as of [DATE] (the “Date of Grant”), [XXXXX] Performance Share Units (the “Award”).  The number of Performance Share Units above assumes achievement of the performance measures set forth herein at the Target level.

This Performance Share Unit award shall be subject to the terms, provisions and restrictions set forth in this Agreement and the Hanmi Financial Corporation 2021 Equity Compensation Plan (the “Plan”), which is incorporated herein for all purposes.  As a condition to entering into this Agreement, and as a condition to the issuance of any Shares (or any other securities of the Company), the Recipient agrees to be bound by all of the terms and conditions herein and in the Plan.  Unless otherwise provided herein, capitalized terms used herein that are defined in the Plan and not defined herein shall have the meanings attributable thereto in the Plan.

2.Vesting of Performance Share Units.

(a)General Vesting.  

The Performance Share Units shall be eligible to vest in a single installment at the end of the three-year period set forth in the table below, based on the achievement of the established performance measures set forth below, provided that the Performance Share Units shall not become vested until and unless the Committee has certified the achievement level of the performance measures set forth below with respect to the Performance Period (the date upon which such certification is completed shall be the “Vesting Date”), and provided, further, that the Continuous Service of the Recipient continues through and on the applicable Vesting Date.  

Percentage of Performance Share Units Eligible for Vesting	Performance Period
100%	Three year period commencing on _______ and ending three years thereafter on _______) Fiscal Years (20XX-20XX)

The performance measurement for the Performance Period shall be based on the performance measures set forth on Exhibit A hereto and the Performance Share Units shall vest at the end of the Performance Period based on the achievement of the performance measures as set forth on Exhibit A. The Committee may consider any exclusions or adjustments in determining the performance measure that it determines appropriate in accordance with Section 8(c) of the Plan.

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Any portion of the Performance Share Unit applicable to the Performance Period that does not vest on the Vesting Date as a result of the achievement level of the performance measure shall be forfeited on the Vesting Date.  

On the Vesting Date, the Committee shall cause the earned Performance Share Units to be converted to an equivalent number of Shares (“Vested Shares”), subject to reduction for applicable tax withholding as set forth in Section 10(k) below.  

Except as otherwise provided in Sections 2(b), 2(c) and 4 hereof, there shall be no proportionate or partial vesting of the Performance Share Units in or during the months, days or periods prior to the Vesting Date, and any vesting of the Performance Share Units shall occur only on the Vesting Date.

(b)Acceleration of Vesting Upon Termination without Cause or for Good Reason Coincident with or Following a Change in Control.  

In the event a Change in Control of the Company occurs during the Recipient’s Continuous Service prior to the end of the Performance Period, coincident with or followed by the Recipient’s termination without Cause or resignation for Good Reason (as defined below) the Performance Share Units subject to this Agreement shall become vested as follows:

[Alternative 1] a number of the Performance Share Units shall become vested on the date of the Recipient’s termination of Continuous Service based on actual achievement of the performance measures, measured through the date of the Change in Control; OR

[Alternative 2] a number of the Performance Share Units shall become vested on the date of the Recipient’s termination of Continuous Service based on the greater of Target or actual achievement of the performance measures, measured through the date of the Change in Control.  

For these purposes, “Good Reason” shall have the equivalent meaning or the same meaning as “good reason” or “for good reason” set forth in any employment, consulting or other agreement for the performance of services between the Recipient and the Company or a Related Entity or, in the absence of any such agreement or any such definition in such agreement, such term shall mean: (i) the assignment to the Recipient of any duties inconsistent in any material respect with the Recipient's duties or responsibilities as assigned by the Company or a Related Entity, or any other action by the Company or a Related Entity which results in a material diminution in such duties or responsibilities, excluding for this purpose an action which is remedied by the Company or a Related Entity promptly after receipt of notice thereof given by the Recipient; (ii) any material failure by the Company or a Related Entity to comply with its obligations to the Recipient as agreed upon, other than a failure which is remedied by the Company or a Related Entity promptly after receipt of notice thereof given by the Recipient; or (iii) the Company's or Related Entity’s requiring the Recipient to be based at any office or location outside of fifty (50) miles from the location of employment or service as of the date of Award, except for travel reasonably required in the performance of the Recipient’s responsibilities.

(c)Acceleration of Vesting Upon A Qualifying Termination.  If the Recipient’s employment is terminated by the Company prior to the end of the Performance Period without Cause or by the Recipient for Good Reason (a “Qualifying Termination”), then a number of Performance Share Units shall become vested as of the date of the termination of employment as follows:

[Alternative 1]a number of the Performance Share Units shall become vested on the date of the Qualifying Termination based on actual achievement of the performance measures measured through the Qualifying Termination date multiplied by a fraction the numerator of which is the days in the Performance

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Period that the Recipient was employed and the denominator of which is the total days in the Performance Period.OR

[Alternative 2]a number of Performance Share Units shall become vested on the date of the Qualifying Termination based on the greater of Target or actual achievement of the performance measures, measured through the Qualifying Termination date, multiplied by a fraction the numerator of which is the days in the Performance Period that the Recipient was employed and the denominator of which is the total days in the Performance Period.

Good Reason shall have the equivalent meaning or the same meaning as “good reason” or “for good reason” set forth in any employment, consulting or other agreement for the performance of services between the Recipient and the Company or a Related Entity or, in the absence of any such agreement or any such definition in such agreement, such term shall mean: (i) the assignment to the Recipient of any duties inconsistent in any material respect with the Recipient's duties or responsibilities as assigned by the Company or a Related Entity, or any other action by the Company or a Related Entity which results in a material diminution in such duties or responsibilities, excluding for this purpose an action which is remedied by the Company or a Related Entity promptly after receipt of notice thereof given by the Recipient; (ii) any material failure by the Company or a Related Entity to comply with its obligations to the Recipient as agreed upon, other than a failure which is remedied by the Company or a Related Entity promptly after receipt of notice thereof given by the Recipient; or (iii) the Company's or Related Entity’s requiring the Recipient to be based at any office or location outside of fifty (50) miles from the location of employment or service as of the date of Award, except for travel reasonably required in the performance of the Recipient’s responsibilities.  

3.Delivery of Earned Shares Following Vesting Date. On or within 10 days following the Vesting Date, the Company shall deliver a number of Shares with respect to all Performance Share Units that are earned and become Vested Shares.  In no event shall any fractional Shares be issued.  Accordingly, the total number of Shares to be issued pursuant to the Performance Share Units shall, to the extent necessary, be rounded down to the next whole share in order to avoid the issuance of a fractional Share.  

4.Forfeiture of Non-Vested Performance Share Units and Vested Shares

.  If the Recipient’s Continuous Service with the Company and the Related Entities is terminated for any reason (other than as provided for in Section 2(c)), any Performance Share Units that do not become Vested Shares pursuant to Section 2 hereof as a result of such termination, shall be forfeited immediately upon such termination of Continuous Service and revert back to the Plan without any payment to the Recipient.  If the Recipient breaches any applicable restrictions set forth in this Agreement or in the Plan, all Performance Share Units (and upon written demand by the Company, in its sole and absolute discretion, any Vested Shares) shall be forfeited immediately upon such breach and revert or be transferred by the Recipient back to the Company without any payment to the Recipient.  The Committee shall have the power and authority to enforce on behalf of the Company any rights of the Company under this Agreement in the event of the Recipient’s forfeiture of Performance Share Units and, to the extent applicable, Vested Shares, pursuant to this Section 4.

5.Rights with Respect to Performance Share Units.

(a)General.  

No Performance Share Unit shall confer upon the Recipient any rights as a stockholder of the Company prior to the date on which the Recipient fulfills all conditions for receipt of such rights and the Vested Shares are issued to the Recipient.  

(b)Dividend Equivalents.

[Alternative 1]Notwithstanding anything to the contrary herein, each Performance Share Unit is granted subject to Dividend Equivalents.  The Dividend Equivalents shall

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cause to be credited to a bookkeeping account on behalf of the Recipient, an amount equal to any cash dividend paid on the Company’s Shares during the Performance Period multiplied by the number of Performance Share Units credited to the Recipient at Target.  During the Performance Period, the Dividend Equivalents shall accrue.  Dividend Equivalents shall only be paid, in cash, to the Recipient on or as soon as reasonably practicable following the Vesting Date and no later than March 15 of the year following the Vesting Date, on the number of Performance Share Unitsthat become Vested Shares.  Any Dividend Equivalents accrued with respect to Performance Share Units that are forfeited shall also be forfeited.  In the event the Recipient vests in Performance Share Units in excess of Target, the number of Dividend Equivalents paid to the Recipient shall be increased to reflect the number of Performance Share Units actually earned.OR

[Alternative 2] No Dividend Equivalents shall be paid on any Performance Share Unit issued hereunder.

(c)Adjustments to Performance Share Units.If at any time while this Agreement is in effect (or Performance Share Units remain unvested and the Recipient remains in Continuous Service), there shall be any increase or decrease in the number of issued and outstanding Shares of the Company through the declaration of a stock dividend or through any recapitalization resulting in a stock split-up, combination or exchange of such Shares, then and in that event, the Board or the Committee shall make any adjustments it deems fair and appropriate, in view of such change, in the number of Performance Share Units then subject to this Agreement in accordance with Section 8(c) of the Plan.  If any such adjustment shall result in a fractional Performance Share, such fraction shall be disregarded.

(d)No Restrictions on Certain Transactions.  

Notwithstanding any term or provision of this Agreement to the contrary, the existence of this Agreement, or of the Performance Share Units awarded hereunder, shall not affect in any manner the right, power or authority of the Company to make, authorize or consummate: (i) any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business; (ii) any merger, consolidation or similar transaction by or of the Company; (iii) any offer, issue or sale by the Company of any capital stock of the Company, including any equity or debt securities, or preferred or preference stock that would rank prior to or on parity with and/or that would include, have or possess other rights, benefits and/or preferences superior to those Shares on which the Performance Share Units are based includes, has or possesses, or any warrants, options or rights with respect to any of the foregoing; (iv) the dissolution or liquidation of the Company; (v) any sale, transfer or assignment of all or any part of the stock, assets or business of the Company; or (vi) any other corporate transaction, act or proceeding (whether of a similar character or otherwise).

6.Transferability

.  The Performance Share Units are not transferable unless and until they been converted to Vested Shares in accordance with this Agreement, other than by will or under the applicable laws of descent and distribution (and then only to the extent that the Performance Share Units are converted to Vested Shares in accordance with Section 2(c) hereof).  The terms of this Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Recipient.  Any attempt to effect a Transfer of any Performance Share prior to the date on which the Performance Share Units vests and are converted to Vested Shares shall be void abinitio.  For purposes of this Agreement, “Transfer” shall mean any sale, transfer, encumbrance, gift, donation, assignment, pledge, hypothecation, or other disposition, whether similar or dissimilar to those previously enumerated, whether voluntary or involuntary, and including, but not limited to, any disposition by operation of law, by court order, by judicial process, or by foreclosure, levy or attachment.

7.Amendment, Modification & Assignment; Non-Transferability

. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board; provided, however, that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the Restricted Stock award in any material way without the prior written

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consent of the Recipient.No promises, assurances, commitments, agreements, undertakings or representations, whether oral, written, electronic or otherwise, and whether express or implied, with respect to the subject matter hereof, have been made by either party which are not set forth expressly in this Agreement.  Unless otherwise consented to in writing by the Company, in its sole discretion, this Agreement (and Recipient’s rights hereunder) may not be assigned, and the obligations of Recipient hereunder may not be delegated, in whole or in part.  The rights and obligations created hereunder shall be binding on the Recipient and the Recipient’s heirs and legal representatives and on the successors and assigns of the Company.

8.Complete Agreement

.  This Agreement (together with those agreements and documents expressly referred to herein, for the purposes referred to herein) embody the complete and entire agreement and understanding between the parties with respect to the subject matter hereof, and supersede any and all prior promises, assurances, commitments, agreements, undertakings or representations, whether oral, written, electronic or otherwise, and whether express or implied, which may relate to the subject matter hereof in any way.

9.Clawback Policy. Notwithstanding any other provision of this Agreement to the contrary, any  Performance Share Units granted hereunder or any Vested Shares issued hereunder upon achievement of the performance measures, and/or any amount received with respect to any sale of any Vested Shares, as well as any cash received in payment of Dividend Equivalents hereunder, to the extent authorized under this Agreement, shall be subject to potential cancellation, recoupment, rescission, payback or other action in accordance with the terms of any clawback policy of the Company as set forth in the Plan or as otherwise may be in effect from time to time (the "Policy").  The Recipient agrees and consents to the Company's application, implementation and enforcement of (a) the Policy and (b) any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation, and expressly agrees that the Company may take such actions as are necessary to effectuate the Policy, any similar policy (as applicable to the Recipient) or any amendments that may from be made from time to time in the future by the Company in its discretion without further consent or action being required by the Recipient. To the extent that the terms of this Agreement and the Policy or any similar policy conflict, then the terms of such policy shall prevail.

10.Miscellaneous.

(a)No Right to (Continued) Employment or Service

.  This Agreement and the grant of Performance Share Units hereunder shall not confer, or be construed to confer, upon the Recipient any right to employment or service, or continued employment or service, with the Company or any Related Entity.

(b)No Limit on Other Compensation Arrangements

.  Nothing contained in this Agreement shall preclude the Company or any Related Entity from adopting or continuing in effect other or additional compensation plans, agreements or arrangements, and any such plans, agreements and arrangements may be either generally applicable or applicable only in specific cases or to specific persons.

(c)Severability

.  If any term or provision of this Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or under any applicable law, rule or regulation, then such provision shall be construed or deemed amended to conform to applicable law (or if such provision cannot be so construed or deemed amended without materially altering the purpose or intent of this Agreement and the grant of Performance Share Units hereunder, such provision shall be stricken as to such jurisdiction and the remainder of this Agreement and the award hereunder shall remain in full force and effect).

(d)No Trust or Fund Created

.  Neither this Agreement nor the grant of Performance Share Units hereunder shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Related Entity and the Recipient or any other person.  To the

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extent that the Recipient or any other person acquires a right to receive payments from the Company or any Related Entity pursuant to this Agreement, such right shall be no greater than the right of any unsecured general creditor of the Company.Your award of Performance Share Units is unfunded, and as a holder of Performance Share Units, you will be considered an unsecured creditor of the Company with respect to the Company’s obligation, if any, to issue shares or other property pursuant to this Agreement. You will not have voting or any other rights as a stockholder of the Company with respect to the shares to be issued pursuant to this Agreement until such Vested Shares are issued to you. Upon such issuance, you will obtain full voting and other rights as a stockholder of the Company.

(e)Law Governing

.  This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware (without reference to the conflict of laws rules or principles thereof).

(f)Interpretation

.  The Recipient accepts the award of Performance Share Units subject to all of the terms, provisions and restrictions of this Agreement and the Plan.  The undersigned Recipient hereby accepts as binding, conclusive and final all decisions or interpretations of the Board or the Committee upon any questions arising under this Agreement or the Plan.  

(g)Headings

.  Section, paragraph and other headings and captions are provided solely as a convenience to facilitate reference.  Such headings and captions shall not be deemed in any way material or relevant to the construction, meaning or interpretation of this Agreement or any term or provision hereof.

(h)Notices

.  Any notice under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or when deposited in the United States mail, registered, postage prepaid, and addressed, in the case of the Company, to the Company’s Secretary at 900 Wilshire Boulevard, Suite 1250, Los Angeles, CA 90017, or if the Company should move its principal office, to such principal office, and, in the case of the Recipient, to the Recipient’s last permanent address as shown on the Company’s records, subject to the right of either party to designate some other address at any time hereafter in a notice satisfying the requirements of this Section.

(i)Non-Waiver of Breach

.  The waiver by any party hereto of the other party’s prompt and complete performance, or breach or violation, of any term or provision of this Agreement shall be effected solely in a writing signed by such party, and shall not operate nor be construed as a waiver of any subsequent breach or violation, and the waiver by any party hereto to exercise any right or remedy which she or it may possess shall not operate nor be construed as the waiver of such right or remedy by such party, or as a bar to the exercise of such right or remedy by such party, upon the occurrence of any subsequent breach or violation.  

(j)Counterparts

.  This Agreement may be executed in two or more separate counterparts, each of which shall be an original, and all of which together shall constitute one and the same agreement.

(k)Collection of Withholding Taxes.  The Company shall collect from the Recipient and/or withhold income and applicable employment taxes with respect earned Performance Share Units and Dividend Equivalents at the time such interests vest in the Recipient through the surrender of Vested Shares.  The number of Vested Shares that may be so withheld or surrendered shall be limited to the number of Vested Shares that have a Fair Market Value on the date of withholding no greater than the aggregate amount of such liabilities based on the maximum statutory withholding rates in such Recipient’s applicable jurisdictions for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such taxable income. Recipient acknowledges that Recipient is ultimately liable and responsible for all taxes owed in connection with the Performance Share Units, regardless of any action the Company or any Related Entity takes with respect to any tax withholding obligations that arise in connection with the

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Performance Share Units.  Neither the Company nor any Related Entity makes any representation or undertaking regarding the treatment of any tax withholding in connection with the awarding, vesting or payment of the Performance Share Units or the subsequent sale of Shares.  The Company and the Related Entities do not commit and are under no obligation to structure the Performance Share Units to reduce or eliminate Recipient’s tax liability.

(l)Compliance with Section 409A of the Code. This Award is intended to comply with the “short-term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4). However, if this Award fails to satisfy the requirements of the short-term deferral rule and is otherwise not exempt from, and therefore deemed to be deferred compensation subject to, Section 409A of the Code, and if the Recipient is a “Specified Employee” (within the meaning set forth Section 409A(a)(2)(B)(i) of the Code) as of the date of the Recipient’s separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)), then the issuance of any shares that would otherwise be made upon the date of the separation from service or within the first six months thereafter will not be made on the originally scheduled dates and will instead be issued in a lump sum on the date that is six months and one day after the date of the separation from service, with the balance of the shares issued thereafter in accordance with the original vesting and issuance schedule set forth in this Agreement, but if and only if such delay in the issuance of the shares is necessary to avoid the imposition of taxation on you in respect of the shares under Section 409A of the Code. Each installment of shares that vests is a “separate payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2).  

[Signature page follows]

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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of ________________________, 20XX.

COMPANY:

HANMI FINANCIAL CORPORATION  

By:  

Name: John J. Ahn

Title: Chairman of the Board

Agreed and Accepted:

RECIPIENT:

By:  __________________________________

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EXHIBIT A

[PERFORMANCE MEASURES TO BE DETERMINED]

EX-10.3

Exhibit 10.3

HANMI FINANCIAL CORPORATION

NON-QUALIFIED STOCK OPTION AGREEMENT

FOR

Name

1.Grant of Option.

   HANMI FINANCIAL CORPORATION (the “Company”) hereby grants, as of Date (“Date of Grant”), to Name (the “Optionee”) an option (the “Option”) to purchase up to     _______ shares of the Company’s common stock (the “Shares”), at an exercise price per share equal to $______ (the “Exercise Price”).  The Option shall be subject to the terms and conditions set forth herein.  The Option is being granted pursuant to the Hanmi Financial Corporation 2021 Equity Compensation Plan (the “Plan”), which is incorporated herein for all purposes.  The Option is a Non-Qualified Stock Option and not an Incentive Stock Option.  The Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all of the terms and conditions hereof and thereof and all applicable laws and regulations.

2.Definitions

.  Unless otherwise provided herein, terms used herein that are defined in the Plan and not defined herein shall have the meanings attributed thereto in the Plan.

3.Exercise Schedule

.  Except as otherwise provided in Section 6 or Section 9 of this Agreement, or in the Plan, the Option is exercisable in installments when vested as provided below, which shall be cumulative.  To the extent that the Option has become exercisable with respect to a percentage of Shares as provided below, the Option may thereafter be exercised by the Optionee, in whole or in part, at any time or from time to time prior to the expiration of the Option as provided herein.  The following table indicates each date (the “Vesting Date”) upon which the Optionee shall be entitled to exercise the Option with respect to the percentage of Shares granted as indicated beside the date, provided that the Continuous Service of the Optionee continues through and on the applicable Vesting Date:

Percentage of Shares	Vesting Date
33%
33%
34%

Except as otherwise specifically provided herein, there shall be no proportionate or partial vesting in the periods prior to each Vesting Date, and all vesting shall occur only on the appropriate Vesting Date.  Upon the termination of the Optionee’s Continuous Service, any unvested portion of the Option shall terminate and be null and void.

4.Method of Exercise

.  The vested portion of this Option shall be exercisable in whole or in part in accordance with the exercise schedule set forth in Section 3 hereof by written notice to the Company or its designee (which may be electronic) which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised, and such other representations and agreements as to the holder’s investment intent with respect to such Shares as may be required by the Company pursuant to the provisions of the Plan.    The written notice shall be accompanied by payment of the Exercise Price.  In the event this Option shall be exercised pursuant to the terms of the Plan by any person or persons other than the Optionee, appropriate proof of the right of such person or persons to exercise this Option shall also

1

be required, as determined in the sole discretion of the Committee.This Option shall be deemed to be exercised after both (a) receipt by the Company of such written notice accompanied by the Exercise Price and (b) arrangements that are satisfactory to the Committee in its sole discretion have been made for Optionee’s payment to the Company of the amount, if any, that is necessary to be withheld in accordance with applicable Federal or state withholding requirements.  No Shares shall be issued pursuant to the Option unless such issuance and such exercise shall comply with all relevant provisions of applicable law, including the requirements of any stock exchange upon which the Shares then may be traded.

5.Method of Payment

.  Payment of the Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionee:  (a) cash; (b) check; (c) consideration received by the Company under a formal cashless exercise program adopted by the Company (whether through a broker or otherwise); (d) to the extent permitted by the Committee, with Shares owned by the Optionee, or the withholding of Shares that otherwise would be delivered to the Optionee as a result of the exercise of the Option; or (e) such other consideration or in such other manner as may be determined by the Committee in its absolute discretion.

6.Termination of Option

.  

(a)General.  Any unexercised portion of the Option shall automatically and without notice terminate and become null and void at the time of the earliest to occur of the following:

(i)three months after the date on which the Optionee’s Continuous Service is terminated other than by reason of (A) by the Company or a Related Entity for Cause, (B) a Disability of the Optionee as determined by a medical doctor satisfactory to the Committee, or (C) the death of the Optionee;

(ii)immediately upon the termination of the Optionee’s Continuous Service by the Company or a Related Entity for Cause;

(iii)twelve months after the date on which the Optionee’s Continuous Service is terminated by reason of a Disability as determined by a medical doctor satisfactory to the Committee;

(iv)twelve months after the date of termination of the Optionee’s Continuous Service by reason of the death of the Optionee;

(v)the tenth (10^th) anniversary of the date as of which the Option is granted.

(b)Cancellation.  To the extent not previously exercised, (i) the Option shall terminate immediately in the event of (A) the liquidation or dissolution of the Company, or (B) any reorganization, merger, consolidation or other form of corporate transaction in which the Company does not survive or the Shares are exchanged for or converted into securities issued by another entity, or an affiliate of such successor or acquiring entity, unless the successor or acquiring entity, or an affiliate thereof, assumes the Option or substitutes an equivalent option or right pursuant to Section 8(c) of the Plan, and (ii) the Committee in its sole discretion may by written notice (“cancellation notice”) cancel, effective upon the consummation of any transaction that constitutes a Change in Control, the Option (or portion thereof) that remains unexercised on such date.  The Committee shall give written notice of any proposed transaction referred to in this Section 6(b) a reasonable period of time prior to the closing date for such transaction (which notice may be given either before or after approval of such transaction), in order that the Optionee may have a reasonable period of time prior to the closing date of such transaction within which to exercise the Option if and to the extent that it then is exercisable (including any portion of the Option that may become exercisable upon the closing date of such transaction).  The Optionee may condition his exercise of the Option upon the consummation of a transaction referred to in this Section 6(b).

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7.Transferability

.  Unless otherwise determined by the Committee, the Option granted hereby is not transferable otherwise than by will or under the applicable laws of descent and distribution, and during the lifetime of the Optionee the Option shall be exercisable only by the Optionee, or the Optionee’s guardian or legal representative.  In addition, the Option shall not be assigned, negotiated, pledged or hypothecated in any way (whether by operation of law or otherwise), and the Option shall not be subject to execution, attachment or similar process.  Upon any attempt to transfer, assign, negotiate, pledge or hypothecate the Option, or in the event of any levy upon the Option by reason of any execution, attachment or similar process contrary to the provisions hereof, the Option shall immediately become null and void.  The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.  

8.No Rights of Stockholders

.  Neither the Optionee nor any personal representative (or beneficiary) shall be, or shall have any of the rights and privileges of, a stockholder of the Company with respect to any Shares purchasable or issuable upon the exercise of the Option, in whole or in part, prior to the date on which the Shares are issued.

9.Acceleration of Exercisability of Option

.  

(a)Acceleration Upon Certain Terminations or Cancellations of Option.  This Option shall become immediately fully vested and fully exercisable in the event that, prior to the termination of the Option pursuant to Section 6 hereof, (i) the Option is terminated pursuant to Section 6(b)(i) hereof (without assumption or substitution of an equivalent option or right pursuant to Section 8(c) of the Plan), or (ii) the Company exercises its discretion to provide a cancellation notice with respect to the Option pursuant to Section 6(b)(ii) hereof.

(b)Acceleration Upon Termination without Cause or for Good Reason Coincident with or Following a Change in Control.  In the event that a Change in Control of the  Company occurs during the Recipient’s Continuous Service, coincident with or followed by the Recipient’s termination without Cause or resignation for “Good Reason” (as defined below) before this Option is fully vested, this Option shall become immediately fully vested and fully exercisable as of the date of the Recipient’s termination of Continuous Service.  .  For these purposes, “Good Reason” shall have the equivalent meaning or the same meaning as “good reason” or “for good reason” set forth in any employment, consulting or other agreement for the performance of services between the Recipient and the Company or a Related Entity or, in the absence of any such agreement or any such definition in such agreement, such term shall mean: (i) the assignment to the Recipient of any duties inconsistent in any material respect with the Recipient's duties or responsibilities as assigned by the Company or a Related Entity, or any other action by the Company or a Related Entity which results in a material diminution in such duties or responsibilities, excluding for this purpose an action which is remedied by the Company or a Related Entity promptly after receipt of notice thereof given by the Recipient; (ii) any material failure by the Company or a Related Entity to comply with its obligations to the Recipient as agreed upon, other than a failure which is remedied by the Company or a Related Entity promptly after receipt of notice thereof given by the Recipient; or (iii) the Company's or Related Entity’s requiring the Recipient to be based at any office or location outside of fifty (50) miles from the location of employment or service as of the date of Award, except for travel reasonably required in the performance of the Recipient’s responsibilities.  

10.No Right to Continued Employment

.  Neither the Option nor this Agreement shall confer upon the Optionee any right to continued employment or service with the Company.

11.Law Governing

.  This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware (without reference to the conflict of laws rules or principles thereof).

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12.Interpretation / Provisions of Plan Control

.  This Agreement is subject to all the terms, conditions and provisions of the Plan, including, without limitation, the amendment provisions thereof, and to such rules, regulations and interpretations relating to the Plan adopted by the Committee as may be in effect from time to time.  If and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly.  The Optionee accepts the Option subject to all of the terms and provisions of the Plan and this Agreement.  The undersigned Optionee hereby accepts as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan and this Agreement, unless shown to have been made in an arbitrary and capricious manner.

13.Amendment and Modification

. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board; provided, however, that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the the Option in any material way without the prior written consent of the Optionee.  

14.Clawback Policy. Notwithstanding any other provision of this Agreement to the contrary, any  Option to purchase shares granted hereunder, any Shares acquired on exercise of an Option hereunder and/or any amount received with respect to any sale of any Shares received pursuant to an exercise hereunder, shall be subject to potential cancellation, recoupment, rescission, payback or other action in accordance with the terms of any clawback policy of the Company as set forth in the Plan or as otherwise may be in effect from time to time (the "Policy").  The Recipient agrees and consents to the Company's application, implementation and enforcement of (a) the Policy and (b) any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation, and expressly agrees that the Company may take such actions as are necessary to effectuate the Policy, any similar policy (as applicable to the Recipient) or any amendments that may from be made from time to time in the future by the Company in its discretion without further consent or action being required by the Recipient. To the extent that the terms of this Agreement and the Policy or any similar policy conflict, then the terms of such policy shall prevail.

15Notices

.  Any notice under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or when deposited in the United States mail, registered, postage prepaid, and addressed, in the case of the Company, to the Company’s Secretary at 900 Wilshire Boulevard, Suite 1250, Los Angeles, CA 90017, or if the Company should move its principal office, to such principal office, and, in the case of the Optionee, to the Optionee’s last permanent address as shown on the Company’s records, subject to the right of either party to designate some other address at any time hereafter in a notice satisfying the requirements of this Section.

[Signature page follows]

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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of ____________.

COMPANY:

HANMI FINANCIAL CORPORATION  

By:  

Name:

Title:

The Optionee acknowledges receipt of a copy of the Plan and represents that he or she has reviewed the provisions of the Plan and this Option Agreement in their entirety, is familiar with and understands their terms and provisions, and hereby accepts this Option subject to all of the terms and provisions of the Plan and the Option Agreement.  The Optionee further represents that he or she has had an opportunity to obtain the advice of counsel prior to executing this Option Agreement.

Dated:  _______________OPTIONEE:

By:  

Name

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:	November 8, 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:	November 8, 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 September 30, 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:	November 8, 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 September 30, 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:	November 8, 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.

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Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Nov. 01, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Trading Symbol	HAFC
Entity Registrant Name	HANMI FINANCIAL CORPORATION
Entity Central Index Key	0001109242
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		30,407,905
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

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Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 824,347	$ 391,849
Securities available for sale, at fair value (amortized cost of $914,649 as of September 30, 2021 and $749,458 as of December 31, 2020)	906,996	753,781
Loans held for sale, at the lower of cost or fair value	17,881	8,568
Loans receivable, net of allowance for credit losses of $76,613 as of September 30, 2021 and $90,426 as of December 31, 2020	4,782,252	4,789,742
Accrued interest receivable	11,943	16,363
Premises and equipment, net	25,582	26,431
Customers' liability on acceptances	352	1,319
Servicing assets	6,838	6,212
Goodwill and other intangible assets, net	11,450	11,612
Federal Home Loan Bank ("FHLB") stock, at cost	16,385	16,385
Income tax assets	42,840	42,704
Bank-owned life insurance	54,653	53,894
Prepaid expenses and other assets	75,014	83,028
Total assets	6,776,533	6,201,888
Deposits:
Noninterest-bearing	2,548,591	1,898,766
Interest-bearing	3,180,945	3,376,242
Total deposits	5,729,536	5,275,008
Accrued interest payable	1,235	4,564
Bank's liability on acceptances	352	1,319
Borrowings	137,500	150,000
Subordinated debentures ($224,100 and $126,800 face amount less unamortized discount and debt issuance costs of $9,256 and $7,828 as of September 30, 2021 and December 31, 2020, respectively)	214,844	118,972
Accrued expenses and other liabilities	74,011	74,981
Total liabilities	6,157,478	5,624,844
Stockholders' equity:
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of September 30, 2021 and December 31, 2020
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 33,617,126 shares (30,441,601 shares outstanding) as of September 30, 2021 and issued 33,560,801 shares (30,717,835 shares outstanding) as of December 31, 2020	33	33
Additional paid-in capital	580,259	578,360
Accumulated other comprehensive (loss) income, net of tax benefit of $2,296 as of September 30, 2021 and net of tax expense of $1,247 as of December 31, 2020	(5,357)	3,076
Retained earnings	169,534	114,621
Less treasury stock; 3,175,525 shares as of September 30, 2021 and 2,842,966 shares as of December 31, 2020	(125,414)	(119,046)
Total stockholders' equity	619,055	577,044
Total liabilities and stockholders' equity	$ 6,776,533	$ 6,201,888

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Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Amortized cost of securities available for sale	$ 914,649	$ 749,458
Loans receivable, allowance for credit losses	76,613	90,426
Face amount of subordinated debentures	224,100	126,800
Unamortized discount and debt issuance costs	$ 9,256	$ 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)	33,617,126	33,560,801
Common stock outstanding (shares)	30,441,601	30,717,835
Accumulated other comprehensive (loss) income, tax (benefit) expense	$ (2,296)	$ 1,247
Treasury stock (shares)	3,175,525	2,842,966

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Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest and dividend income:
Interest and fees on loans receivable	$ 52,961,000	$ 52,586,000	$ 156,361,000	$ 159,464,000
Interest on securities	1,865,000	1,972,000	4,409,000	8,852,000
Dividends on FHLB stock	245,000	204,000	693,000	696,000
Interest on deposits in other banks	329,000	84,000	601,000	495,000
Total interest and dividend income	55,400,000	54,846,000	162,064,000	169,507,000
Interest expense:
Interest on deposits	2,466,000	7,032,000	9,419,000	28,663,000
Interest on borrowings	409,000	582,000	1,332,000	1,838,000
Interest on subordinated debentures	2,545,000	1,627,000	5,759,000	4,984,000
Total interest expense	5,420,000	9,241,000	16,510,000	35,485,000
Net interest income before credit loss expense	49,980,000	45,605,000	145,554,000	134,022,000
Credit loss (recovery) expense	(7,234,000)	38,000	(8,452,000)	40,371,000
Net interest income after credit loss (recovery) expense	57,214,000	45,567,000	154,006,000	93,651,000
Noninterest income:
Service charges on deposit accounts	3,437,000	2,002,000	8,036,000	6,434,000
Trade finance and other service charges and fees	1,188,000	972,000	3,468,000	2,920,000
Gain on sale of Small Business Administration ("SBA") loans	5,842,000	2,324,000	13,475,000	3,478,000
Net gain on sales of securities			99,000	15,712,000
Other operating income	2,042,000	1,842,000	6,123,000	5,751,000
Total noninterest income	12,509,000	7,140,000	31,201,000	34,295,000
Noninterest expense:
Salaries and employee benefits	18,795,000	17,194,000	53,917,000	49,645,000
Occupancy and equipment	5,037,000	4,650,000	14,235,000	13,633,000
Data processing	2,934,000	2,761,000	8,775,000	8,233,000
Professional fees	1,263,000	1,794,000	4,123,000	5,255,000
Supplies and communications	741,000	698,000	2,231,000	2,337,000
Advertising and promotion	953,000	594,000	1,685,000	1,783,000
Other operating expenses	2,779,000	2,233,000	7,852,000	7,245,000
Total noninterest expense	32,502,000	29,924,000	92,818,000	88,131,000
Income before tax	37,221,000	22,783,000	92,389,000	39,815,000
Income tax expense	10,656,000	6,439,000	27,042,000	11,945,000
Net income	$ 26,565,000	$ 16,344,000	$ 65,346,000	$ 27,870,000
Basic earnings per share	$ 0.87	$ 0.53	$ 2.13	$ 0.91
Diluted earnings per share	$ 0.86	$ 0.53	$ 2.13	$ 0.91
Weighted-average shares outstanding:
Basic	30,474,391	30,464,263	30,222,978	30,276,462
Diluted	30,552,196	30,464,263	30,298,553	30,276,462

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 26,565	$ 16,344	$ 65,346	$ 27,870
Unrealized gain on securities:
Unrealized holding (loss) gain arising during period	(3,568)	1,947	(11,877)	13,378
Less: reclassification adjustment for net gain included in net income			(99)	(15,712)
Income tax benefit (expense) related to items of other comprehensive income	1,070	(561)	3,543	673
Other comprehensive income (loss), net of tax	(2,498)	1,386	(8,433)	(1,661)
Comprehensive income	$ 24,067	$ 17,730	$ 56,913	$ 26,209

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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	$ 563,267			$ 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			$ 551,100		$ 33		$ (116,515)		$ 575,816		$ 3,382			$ 88,385
Restricted stock awards, net of forfeitures (shares)				85,581
Share-based compensation expense	1,911							1,911
Restricted stock surrendered due to employee tax liability	(317)					$ (317)
Restricted stock surrendered due to employee tax liability (shares)				(30,214)		(30,214)
Repurchase of common stock	(2,196)					$ (2,196)
Repurchase of common stock (shares)				(135,400)		(135,400)
Cash dividends declared (common stock, $0.08/share, $0.12/share, $0.44/share, $0.34/share)	(13,504)											(13,504)
Net income	27,870											27,870
Change in unrealized gain (loss) on securities available for sale, net of income taxes	(1,661)									(1,661)
Balance at end of period at Sep. 30, 2020	563,203			$ 33		$ (119,029)		577,727		1,721		102,751
Ending balance, shares issued (shares) at Sep. 30, 2020				33,560,983
Ending balance, treasury stock (shares) at Sep. 30, 2020						(2,841,392)
Ending balance, shares outstanding (shares) at Sep. 30, 2020				30,719,591
Balance at beginning of period at Jun. 30, 2020	547,436			$ 33		$ (119,002)		577,211		335		88,859
Beginning balance, shares issued (shares) at Jun. 30, 2020				33,495,913
Beginning balance, treasury stock (shares) at Jun. 30, 2020						(2,838,284)
Beginning balance, shares outstanding (shares) at Jun. 30, 2020				30,657,629
Restricted stock awards, net of forfeitures (shares)				65,070
Share-based compensation expense	516							516
Restricted stock surrendered due to employee tax liability	(27)					$ (27)
Restricted stock surrendered due to employee tax liability (shares)				(3,108)		(3,108)
Cash dividends declared (common stock, $0.08/share, $0.12/share, $0.44/share, $0.34/share)	(2,452)											(2,452)
Net income	16,344											16,344
Change in unrealized gain (loss) on securities available for sale, net of income taxes	1,386									1,386
Balance at end of period at Sep. 30, 2020	563,203			$ 33		$ (119,029)		577,727		1,721		102,751
Ending balance, shares issued (shares) at Sep. 30, 2020				33,560,983
Ending balance, treasury stock (shares) at Sep. 30, 2020						(2,841,392)
Ending balance, shares outstanding (shares) at Sep. 30, 2020				30,719,591
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)				56,325
Share-based compensation expense	$ 1,899							1,899
Restricted stock surrendered due to employee tax liability	(531)					$ (531)
Restricted stock surrendered due to employee tax liability (shares)				(27,639)		(27,639)
Repurchase of common stock	(5,837)					$ (5,837)
Repurchase of common stock (shares)				(304,920)		(304,920)
Cash dividends declared (common stock, $0.08/share, $0.12/share, $0.44/share, $0.34/share)	(10,433)											(10,433)
Net income	65,346											65,346
Change in unrealized gain (loss) on securities available for sale, net of income taxes	(8,433)									(8,433)
Balance at end of period at Sep. 30, 2021	$ 619,055			$ 33		$ (125,414)		580,259		(5,357)		169,534
Ending balance, shares issued (shares) at Sep. 30, 2021				33,617,126
Ending balance, treasury stock (shares) at Sep. 30, 2021	(3,175,525)					(3,175,525)
Ending balance, shares outstanding (shares) at Sep. 30, 2021				30,441,601
Balance at beginning of period at Jun. 30, 2021	$ 602,977			$ 33		$ (120,443)		579,595		(2,859)		146,651
Beginning balance, shares issued (shares) at Jun. 30, 2021				33,617,311
Beginning balance, treasury stock (shares) at Jun. 30, 2021						(2,919,659)
Beginning balance, shares outstanding (shares) at Jun. 30, 2021				30,697,652
Restricted stock awards, net of forfeitures (shares)				(185)
Share-based compensation expense	664							664
Restricted stock surrendered due to employee tax liability	(80)					$ (80)
Restricted stock surrendered due to employee tax liability (shares)				(5,946)		(5,946)
Repurchase of common stock	(4,891)					$ (4,891)
Repurchase of common stock (shares)				(249,920)		(249,920)
Cash dividends declared (common stock, $0.08/share, $0.12/share, $0.44/share, $0.34/share)	(3,682)											(3,682)
Net income	26,565											26,565
Change in unrealized gain (loss) on securities available for sale, net of income taxes	(2,498)									(2,498)
Balance at end of period at Sep. 30, 2021	$ 619,055			$ 33		$ (125,414)		$ 580,259		$ (5,357)		$ 169,534
Ending balance, shares issued (shares) at Sep. 30, 2021				33,617,126
Ending balance, treasury stock (shares) at Sep. 30, 2021	(3,175,525)					(3,175,525)
Ending balance, shares outstanding (shares) at Sep. 30, 2021				30,441,601

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement Of Stockholders Equity [Abstract]
Common stock (in usd per share)	$ 0.12	$ 0.08	$ 0.34	$ 0.44

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 65,346	$ 27,870
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,186	8,008
Share-based compensation expense	1,899	1,911
Credit loss (recovery) expense	(8,452)	40,371
Gain on sales of securities	(99)	(15,712)
Gain on sales of SBA loans	(13,475)	(3,478)
Origination of SBA loans held for sale	(233,642)	(54,295)
Proceeds from sales of SBA loans	233,711	50,950
Change in bank-owned life insurance	(759)	(841)
Change in prepaid expenses and other assets	5,531	(32,631)
Change in income tax assets	3,407	(1,262)
Change in accrued expenses and other liabilities	(188)	19,384
Net cash provided by (used in) operating activities	65,465	40,275
Cash flows from investing activities:
Purchases of securities available for sale	(402,259)	(747,858)
Proceeds from matured, called and repayment of securities	223,129	174,021
Proceeds from sales of securities available for sale	8,035	495,566
Purchases of loans receivable	(1,500)	(9,437)
Purchases of premises and equipment	(2,450)	(4,860)
Proceeds from disposition of premises and equipment	45	173
Proceeds from sales of other real estate owned ("OREO")	1,479	431
Change in loans receivable, excluding purchases	20,415	(249,547)
Net cash provided by (used in) investing activities	(153,106)	(341,511)
Cash flows from financing activities:
Change in deposits	454,528	495,330
Change in overnight borrowings		(15,000)
Proceeds from borrowings	(12,500)	75,000
Issuance of subordinated debentures	107,956
Purchase of subordinated debentures	(13,043)
Cash paid for surrender of vested shares due to employee tax liability	(531)	(317)
Repurchase of common stock	(5,837)	(2,196)
Cash dividends paid	(10,433)	(13,504)
Net cash provided by (used in) financing activities	520,140	539,313
Net increase (decrease) in cash and due from banks	432,498	238,077
Cash and due from banks at beginning of year	391,849	121,678
Cash and due from banks at end of period	824,347	359,755
Supplemental disclosures of cash flow information:
Interest paid	19,839	41,273
Income taxes paid	22,265	13,546
Non-cash activities:
Transfer of loans receivable to other real estate owned		1,052
Income tax benefit (expense) related to items of other comprehensive income	3,543	673
Change in right-of-use asset obtained in exchange for lease liability	$ 2,905	$ 21,815

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Organization and Basis of Presentation

9 Months Ended

Sep. 30, 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 September 30, 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 COVID-19 pandemic resulted in restrictions on travel and business activities which have yet to return to pre-pandemic levels. 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.

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Securities

9 Months Ended

Sep. 30, 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)
September 30, 2021
U.S. Treasury securities	$	4,948	$	—	$	(3	)	$	4,945
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		641,256		138		(5,332	)		636,062
Collateralized mortgage obligations		100,244		190		(551	)		99,883
Debt securities		99,015		4		(583	)		98,436
Total U.S. government agency and sponsored agency obligations		840,515		332		(6,466	)		834,381
Municipal bonds-tax exempt		69,186		—		(1,516	)		67,670
Total securities available for sale	$	914,649	$	332	$	(7,985	)	$	906,996
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 September 30, 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.

	September 30, 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	$	2,019	$	2,029	$	13,305	$	13,435
Over one year through five years		94,431		94,039		139,876		140,100
Over five years through ten years		54,014		53,971		25,764		25,768
Over ten years		764,185		756,957		570,513		574,478
Total	$	914,649	$	906,996	$	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 September 30, 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)
September 30, 2021
U.S. Treasury securities	$	(3	)	$	4,945	$	1	$	—		$	—	$	—	$	(3	)	$	4,945	$	1
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities	$	(4,954	)	$	546,307		97	$	(378	)	$	14,699		2	$	(5,332	)	$	561,006		99
Collateralized mortgage obligations		(461	)		47,720		12		(90	)		5,277		1		(551	)		52,997		13
Debt securities		(583	)		93,432		17		—			—		—		(583	)		93,432		17
Total U.S. government agency and sponsored agency obligations		(5,998	)		687,459		126		(468	)		19,976		3		(6,466	)		707,435		129
Municipal bonds-tax exempt		(1,516	)		67,670		17		—			—		—		(1,516	)		67,670		17
Total	$	(7,517	)	$	760,074		144	$	(468	)	$	19,976		3	$	(7,985	)	$	780,050		147
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 a quarterly basis. This assessment takes into account the changes in the credit quality of these debt securities since acquisition and the likelihood of a credit loss occurring over the life of the securities. In the event that a credit loss is expected to occur in the future, an allowance is established and a corresponding credit loss is recognized. Based on this analysis, as of September 30, 2021, the Company determined that no credit losses are expected to be realized on the tax-exempt municipal bond portfolio. The remainder of the portfolio consists of U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government, and are therefore not expected to incur credit losses.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Gross realized gains on sales of securities	$	—	$	—	$	99	$	15,712
Gross realized losses on sales of securities		—		—		—		—
Net realized gains on sales of securities	$	—	$	—	$	99	$	15,712
Proceeds from sales of securities	$	—	$	—	$	8,035	$	495,566

There were no sales of securities during the three months ended September 30, 2021 and 2020.

During the nine months ended September 30, 2021, there were $99,000 in gains resulting from the sale of $8.0 million of securities previously recorded with $142,000 unrealized gains in accumulated other comprehensive income. During the nine months ended September 30, 2020, there were $15.7 million in net gains in earnings resulting from the sale of $495.6 million of securities previously recorded with $15.3 million unrealized gains in accumulated other comprehensive income.

Securities available for sale with market values of $26.1 million and $27.3 million as of September 30, 2021 and December 31, 2020, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.

At September 30, 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

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Loans

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:

	September 30, 2021			December 31, 2020
	(in thousands)
Real estate loans:
Commercial property
Retail	$	942,996		$	824,606
Hospitality		725,864			859,953
Other (1)		1,783,477			1,610,377
Total commercial property loans		3,452,337			3,294,936
Construction		76,168			58,882
Residential/consumer loans		354,861			345,831
Total real estate loans		3,883,366			3,699,649
Commercial and industrial loans		516,357			757,255
Leases receivable		459,142			423,264
Loans receivable		4,858,865			4,880,168
Allowance for credit losses		(76,613	)		(90,426	)
Loans receivable, net	$	4,782,252		$	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 September 30, 2021 and December 31, 2020, PPP loans totaling $21.9 million and $295.7 million, respectively, were included in the table above. In addition, at September 30, 2021 and December 31, 2020, there were $12.0 million and $155.6 million, respectively, of loans modified under Section 4013 of the CARES Act.

Accrued interest on loans was $10.2 million and $15.2 million at September 30, 2021 and December 31, 2020, respectively. Accrued interest at September 30, 2021 and December 31, 2020 included unpaid deferred interest receivable for loans currently or previously modified under the CARES Act of $3.6 million and $7.5 million, net of a $311,000 and $1.7 million valuation allowance, respectively.

At September 30, 2021 and December 31, 2020, loans of $2.17 billion were pledged to secure advances from the FHLB.

Loans Held for Sale

The following is the activity for loans held for sale for the three months ended September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	13,092		$	22,938		$	36,030
Originations and transfers		28,537			15,228			43,765
Sales		(27,513	)		(34,956	)		(62,469	)
Principal paydowns and amortization		(4	)		559			555
Balance at end of period	$	14,112		$	3,769		$	17,881
September 30, 2020
Balance at beginning of period	$	12,661		$	5,281		$	17,942
Originations		12,049			12,107			24,156
Sales		(20,621	)		(8,639	)		(29,260	)
Principal paydowns and amortization		—			(5	)		(5	)
Balance at end of period	$	4,089		$	8,745		$	12,834

Loans held for sale was comprised of $17.9 million and $8.6 million of the guaranteed portion of SBA 7(a) loans at September 30, 2021 and December 31, 2020, respectively. During the three months ended September 30, 2021, the Company recognized $339,000 of gains on the sale of $14.6 million of second draw PPP loans. For the nine months ended September 30, 2021, the Company recognized $3.0 million of gains on the sale of $132.7 million second draw PPP loans.

The following is the activity for loans held for sale for the nine months ended September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	8,042		$	526		$	8,568
Originations and transfers		71,005			162,637			233,642
Sales		(64,930	)		(160,293	)		(225,223	)
Principal payoffs and amortization		(5	)		899			894
Balance at end of period	$	14,112		$	3,769		$	17,881
September 30, 2020
Balance at beginning of period	$	2,943		$	3,077		$	6,020
Originations		31,204			23,091			54,295
Sales		(30,053	)		(17,419	)		(47,472	)
Principal payoffs and amortization		(5	)		(5	)		(10	)
Balance at end of period	$	4,089		$	8,745		$	12,834

Allowance for Credit Losses

The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Leases Receivable			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	63,029		$	8,059		$	12,284		$	83,372
Less loans charged off		—			186			791			977
Recoveries on loans receivable previously charged off		(1,162	)		(330	)		(350	)		(1,842	)
Provision (recovery) for credit losses		(8,128	)		507			(3	)		(7,624	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613
Individually evaluated	$	8		$	13		$	2,173		$	2,194
Collectively evaluated	$	56,055		$	8,697		$	9,667		$	74,419
Loans receivable	$	3,883,366		$	516,357		$	459,142		$	4,858,865
Individually evaluated	$	13,988		$	313		$	6,923		$	21,224
Collectively evaluated	$	3,869,378		$	516,044		$	452,219		$	4,837,641
September 30, 2020
Balance at beginning of period	$	56,418		$	13,388		$	16,524		$	86,330
Less loans charged off		687			383			1,081			2,151
Recoveries on loans receivable previously charged off		(1,497	)		(35	)		(213	)		(1,745	)
Provision (recovery) for credit losses		(6,744	)		7,809			(368	)		697
Ending balance	$	50,484		$	20,849		$	15,287		$	86,620
Individually evaluated	$	35		$	1,623		$	2,087		$	3,745
Collectively evaluated	$	50,449		$	19,226		$	13,200		$	82,875
Loans receivable	$	3,635,330		$	765,484		$	433,323		$	4,834,137
Individually evaluated	$	48,220		$	13,293		$	7,338		$	68,851
Collectively evaluated	$	3,587,110		$	752,191		$	425,985		$	4,765,286

The following table details the information on the allowance for credit losses by portfolio segment as of and for the nine months ended September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Leases Receivable			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	51,876		$	21,410		$	17,140			90,426
Less loans charged off		1,491			550			3,893			5,934
Recoveries on loans receivable previously charged off		(1,597	)		(602	)		(694	)		(2,893	)
Provision (recovery) for credit losses		4,081			(12,752	)		(2,101	)		(10,772	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613
Individually evaluated	$	8		$	13		$	2,173		$	2,194
Collectively evaluated	$	56,055		$	8,697		$	9,667		$	74,419
Loans receivable	$	3,883,366		$	516,357		$	459,142		$	4,858,865
Individually evaluated	$	13,988		$	313		$	6,923		$	21,224
Collectively evaluated	$	3,869,378		$	516,044		$	452,219		$	4,837,641
September 30, 2020
Balance at beginning of period	$	36,435		$	16,206		$	8,767		$	61,408
Adjustment related to adoption of ASU 2016-13		14,027			(2,497	)		5,902			17,432
Adjusted balance as of January 1, 2020		50,462			13,709			14,669			78,840
Less loans charged off		14,920			12,972			3,306			31,198
Recoveries on loans receivable previously charged off		(1,653	)		(179	)		(401	)		(2,233	)
Provision for credit losses		13,289			19,932			3,523			36,744
Ending balance	$	50,484		$	20,849		$	15,287		$	86,620
Individually evaluated	$	35		$	1,623		$	2,087		$	3,745
Collectively evaluated	$	50,449		$	19,226		$	13,200		$	82,875
Loans receivable	$	3,635,330		$	765,484		$	433,323		$	4,834,137
Individually evaluated	$	48,220		$	13,293		$	7,338		$	68,851
Collectively evaluated	$	3,587,110		$	752,191		$	425,985		$	4,765,286

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

	September 30, 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	$	5,294	$	942,996		19.4	%	$	4,855	$	824,606		16.9	%
Hospitality		29,600		725,864		14.9	%		28,801		859,953		17.6	%
Other		12,842		1,783,477		36.7	%		13,991		1,610,377		33.0	%
Total commercial property loans		47,736		3,452,337		71.0	%		47,647		3,294,936		67.5	%
Construction		7,565		76,168		1.6	%		2,876		58,882		1.2	%
Residential/consumer loans		762		354,861		7.3	%		1,353		345,831		7.1	%
Total real estate loans		56,063		3,883,366		79.9	%		51,876		3,699,649		75.8	%
Commercial and industrial loans		8,710		516,357		10.6	%		21,410		757,255		15.5	%
Leases receivable		11,840		459,142		9.5	%		17,140		423,264		8.7	%
Total	$	76,613	$	4,858,865		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 September 30, 2021 and December 31, 2020, for which repayment is expected to be obtained through the sale of the underlying collateral.

	September 30, 2021		December 31, 2020
	Amortized Cost		Amortized Cost
	(in thousands)
Real estate loans:
Commercial property
Retail	$	2,628	$	6,330
Hospitality		—		20,612
Other (1)		128		8,410
Total commercial property loans		2,756		35,352
Construction		7,046		24,854
Residential/consumer loans		2,523		2,867
Total real estate loans		12,325		63,073
Commercial and industrial loans		—		41
Total	$	12,325	$	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)
September 30, 2021
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	827,018	$	722,970	$	485,633	$	434,177	$	298,246	$	495,077	$	48,666	$	3,311,787
Special Mention		—		18,937		16,444		—		2,713		56,380		1,864		96,338
Classified		—		—		5,477		22,586		3,672		12,477		—		44,212
Total commercial property		827,018		741,907		507,554		456,763		304,631		563,934		50,530		3,452,337
Construction
Risk Rating
Pass / Pass Watch		38,304		13,450		—		—		—		—		—		51,754
Special Mention		—		—		—		—		—		17,368		—		17,368
Classified		—		—		—		—		—		7,046		—		7,046
Total construction		38,304		13,450		—		—		—		24,414		—		76,168
Residential/consumer loans
Risk Rating
Pass / Pass-Watch		116,334		19,299		250		23,202		93,590		89,701		6,795		349,171
Special Mention		—		—		—		930		391		2,237		—		3,558
Classified		—		—		—		—		1,819		313		—		2,132
Total residential/consumer loans		116,334		19,299		250		24,132		95,800		92,251		6,795		354,861
Total real estate loans
Risk Rating
Pass / Pass-Watch		981,656		755,719		485,883		457,379		391,836		584,778		55,461		3,712,712
Special Mention		—		18,937		16,444		930		3,104		75,985		1,864		117,264
Classified		—		—		5,477		22,586		5,491		19,836		—		53,390
Total real estate loans		981,656		774,656		507,804		480,895		400,431		680,599		57,325		3,883,366
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		191,318		72,473		34,474		13,864		11,899		7,196		149,708		480,932
Special Mention		—		4,448		4,602		4,017		70		13		151		13,301
Classified		—		—		13,825		221		32		6,004		2,042		22,124
Total commercial and industrial loans		191,318		76,921		52,901		18,102		12,001		13,213		151,901		516,357
Leases receivable:
Risk Rating
Pass / Pass-Watch		171,682		88,342		116,991		57,878		14,673		2,653		—		452,219
Special Mention		—		—		—		—		—		—		—		—
Classified		148		474		4,174		1,418		410		299		—		6,923
Total leases receivable		171,830		88,816		121,165		59,296		15,083		2,952		—		459,142
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,344,656		916,534		637,348		529,121		418,408		594,627		205,169		4,645,863
Special Mention		—		23,385		21,046		4,947		3,174		75,998		2,015		130,565
Classified		148		474		23,476		24,225		5,933		26,139		2,042		82,437
Total loans receivable	$	1,344,804	$	940,393	$	681,870	$	558,293	$	427,515	$	696,764	$	209,226	$	4,858,865

	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)
September 30, 2021
Real estate loans:
Commercial property
Payment performance
Performing	$	827,018	$	741,907	$	507,554	$	456,743	$	303,236	$	560,930	$	50,530	$	3,447,918
Nonperforming		—		—		—		20		1,395		3,004		—		4,419
Total commercial property		827,018		741,907		507,554		456,763		304,631		563,934		50,530		3,452,337
Construction
Payment performance
Performing		38,304		13,450		—		—		—		17,368		—		69,122
Nonperforming		—		—		—		—		—		7,046		—		7,046
Total construction		38,304		13,450		—		—		—		24,414		—		76,168
Residential/consumer loans
Payment performance
Performing		116,334		19,299		250		24,132		93,590		91,938		6,795		352,338
Nonperforming		—		—		—		—		2,210		313		—		2,523
Total residential/consumer loans		116,334		19,299		250		24,132		95,800		92,251		6,795		354,861
Total real estate loans
Payment performance
Performing		981,656		774,656		507,804		480,875		396,826		670,236		57,325		3,869,378
Nonperforming		—		—		—		20		3,605		10,363		—		13,988
Total real estate loans		981,656		774,656		507,804		480,895		400,431		680,599		57,325		3,883,366
Commercial and industrial loans:
Payment performance
Performing		191,318		76,921		52,862		18,102		11,995		12,945		151,901		516,044
Nonperforming		—		—		39		—		6		268		—		313
Total commercial and industrial loans		191,318		76,921		52,901		18,102		12,001		13,213		151,901		516,357
Leases receivable:
Payment performance
Performing		171,668		88,342		116,991		57,878		14,673		2,653		—		452,205
Nonperforming		162		474		4,174		1,418		410		299		—		6,937
Total leases receivable		171,830		88,816		121,165		59,296		15,083		2,952		—		459,142
Total loans receivable:
Payment performance
Performing		1,344,642		939,919		677,657		556,855		423,494		685,834		209,226		4,837,627
Nonperforming		162		474		4,213		1,438		4,021		10,930		—		21,238
Total loans receivable	$	1,344,804	$	940,393	$	681,870	$	558,293	$	427,515	$	696,764	$	209,226	$	4,858,865

	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 September 30, 2021, of the $12.0 million of loans modified in accordance with the provision of the CARES Act, $2.6 million were pass and pass-watch, $6.4 million were special mention, and $3.0 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 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)
September 30, 2021
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	942,996	$	942,996	$	—
Hospitality		—		—		—		—		725,864		725,864		—
Other		1,945		—		128		2,073		1,781,404		1,783,477		—
Total commercial property loans		1,945		—		128		2,073		3,450,264		3,452,337		—
Construction		—		—		—		—		76,168		76,168		—
Residential/consumer loans		1,641		—		1,404		3,045		351,816		354,861		—
Total real estate loans		3,586		—		1,532		5,118		3,878,248		3,883,366		—
Commercial and industrial loans		—		13		—		13		516,344		516,357		—
Leases receivable		2,891		1,532		1,636		6,059		453,083		459,142		13
Total loans receivable	$	6,477	$	1,545	$	3,168	$	11,190	$	4,847,675	$	4,858,865	$	13
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	$	—

At September 30, 2021 and December 31, 2020, currently modified loans under the CARES Act were $12.0 million and $155.6 million, respectively. Of the currently modified loans, $306,000 were 30-59 days past due, no loans were 60-89 days past due, and $94,000 were 90 days or more past due at September 30, 2021, and all loans were current at December 31, 2020. For loans previously modified under the CARES Act, $4.4 million were 30-59 days past due, $900,000 were 60-89 days past due, and $2.2 million were 90 days or more past due at September 30, 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 September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(in thousands)
Interest income that would have been recognized had individually evaluated loans performed in accordance with their original terms	$	627		$	1,482		$	2,830		$	4,092
Less: Interest income recognized on individually evaluated loans		(106	)		(204	)		(362	)		(1,319	)
Interest foregone on individually evaluated loans	$	521		$	1,278		$	2,468		$	2,773

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 September 30, 2021 and December 31, 2020.

	September 30, 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	$	2,628	$	—	$	—	$	2,628
Hospitality		—		—		—		—
Other		1,440		351		—		1,791
Total commercial property loans		4,068		351		—		4,419
Construction		7,046		—		—		7,046
Residential/consumer loans		2,523		—		—		2,523
Total real estate loans		13,637		351		—		13,988
Commercial and industrial loans		11		302		—		313
Leases receivable		785		6,139		13		6,937
Total	$	14,433	$	6,792	$	13	$	21,238
	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		20,611		—		—		20,611
Other		2,236		909		—		3,145
Total commercial property loans		29,178		909		—		30,087
Construction		24,854		—		—		24,854
Residential/consumer loans		2,350		—		—		2,350
Total real estate loans		56,382		909		—		57,291
Commercial and industrial loans		58		14,450		—		14,508
Leases receivable		2,318		8,916		—		11,234
Total	$	58,758	$	24,275	$	—	$	83,033

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

	September 30, 2021		December 31, 2020
	(in thousands)
Nonaccrual loans	$	21,225	$	83,033
Loans receivable 90 days or more past due and still accruing		13		—
Total nonperforming loans receivable		21,238		83,033
Other real estate owned ("OREO")		675		2,360
Total nonperforming assets	$	21,913	$	85,393

OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020.

Troubled Debt Restructurings

As of September 30, 2021 and December 31, 2020, TDRs were $11.3 million and $25.0 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise considered to a borrower for economic or legal reasons related to the borrower’s financial difficulties. 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 September 30, 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)
September 30, 2021
Real estate loans	$	393	$	2,756	$	7,437	$	—	$	10,586	$	559	$	—	$	—	$	—	$	559
Commercial and industrial loans		—		130		—		—		130		—		—		1		11		12
Total	$	393	$	2,886	$	7,437	$	—	$	10,716	$	559	$	—	$	1	$	11	$	571
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 TDRs that occurred during the periods indicated, with their pre- and post-modification recorded amounts.

	Three Months ended						Twelve Months ended
	September 30, 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
	Nine Months ended						Twelve Months ended
	September 30, 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 September 30, 2021 and December 31, 2020, the allowance resulting from the individual evaluation of TDRs was inconsequential.

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 and nine months ended September 30, 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 inconsequential.

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Servicing Assets

9 Months Ended

Sep. 30, 2021

Transfers And Servicing [Abstract]

Servicing Assets

Note 4 — Servicing Assets

The changes in servicing assets for the three months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30,
	2021			2020
	(in thousands)
Servicing assets:
Balance at beginning of period	$	6,199		$	6,186
Addition related to sale of SBA loans		1,171			686
Amortization		(532	)		(524	)
Balance at end of period	$	6,838		$	6,348

The changes in servicing assets for the nine months ended September 30, 2021 and 2020 were as follows:

	Nine Months Ended September 30,
	2021			2020
	(in thousands)
Servicing assets:
Balance at beginning of period	$	6,212		$	6,956
Addition related to sale of SBA loans		2,328			1,040
Amortization		(1,702	)		(1,648	)
Balance at end of period	$	6,838		$	6,348

At September 30, 2021 and December 31, 2020, we serviced loans sold to unaffiliated parties in the amounts of $459.8 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 $1.1 million for each of the three months ended September 30, 2021 and 2020, and $3.4 million for each of the nine months ended September 30, 2021 and 2020. 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 $532,000 and $524,000 for the three months ended September 30, 2021 and 2020, respectively, and $1.7 million and $1.6 million for the nine months ended September 30, 2021 and 2020, respectively.

The fair value of servicing rights was $8.1 million at September 30, 2021. The fair value at September 30, 2021 was determined using discount rates ranging from 8.6 percent to 10.5 percent and prepayment speeds ranging from 11.0 percent to 17.4 percent, depending on the stratification of the specific right. The fair value of servicing rights was $6.9 million at December 31, 2020. The 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

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 5 — Income Taxes

The Company’s income tax expense was $10.7 million and $6.4 million representing an effective income tax rate of 28.6 percent and 28.3 percent for the three months ended September 30, 2021 and 2020, respectively. The Company’s income tax expense was $27.0 million and $11.9 million representing an effective income tax rate of 29.3 percent and 30.0 percent for the nine months ended September 30, 2021 and 2020, respectively.

Management concluded that as of September 30, 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 September 30, 2021 and December 31, 2020, respectively. The net current tax asset was $175,000 and $1.0 million as of September 30, 2021 and December 31, 2020, respectively.

As of September 30, 2021, the Company was 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 September 30, 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 September 30, 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

9 Months Ended

Sep. 30, 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:

		September 30, 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	$	(1,861	)	$	352	$	2,213	$	(1,746	)	$	467
Third-party originators intangible	7 years		483		(416	)		67		483		(369	)		114
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,727	$	(2,277	)	$	11,450	$	13,727	$	(2,115	)	$	11,612

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

9 Months Ended

Sep. 30, 2021

Deposits [Abstract]

Deposits

Note 7 — Deposits

Time deposits of $250,000 or more at September 30, 2021 and December 31, 2020 were $226.2 million and $311.8 million, respectively. Time deposits at or exceeding the FDIC insurance limit of $250,000 as of September 30, 2021 and December 31, 2020 were $188.2 million and $265.6 million, respectively.

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

At September 30, 2021	Time Deposits of $250,000 or More		Other Time Deposits		Total
	(in thousands)
2021	$	104,321	$	159,946	$	264,267
2022		120,119		559,416		679,535
2023		1,518		33,220		34,738
2024		—		47,006		47,006
2025 and thereafter		264		3,801		4,065
Total	$	226,222	$	803,389	$	1,029,611
At December 31, 2020
2021	$	296,455	$	825,677	$	1,122,132
2022		14,315		115,832		130,147
2023		804		22,881		23,685
2024		—		5,382		5,382
2025 and thereafter		264		2,089		2,353
Total	$	311,838	$	971,861	$	1,283,699

Accrued interest payable on deposits was $1.2 million and $4.6 million at September 30, 2021 and December 31, 2020, respectively. Total deposits reclassified to loans due to overdrafts at September 30, 2021 and December 31, 2020 were $259,000 and $241,000, respectively.

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Borrowings and Subordinated Debentures

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Borrowings and Subordinated Debentures

Note 8 — Borrowings and Subordinated Debentures

At September 30, 2021, the Bank had no overnight advances and $137.5 million of term advances outstanding with the FHLB with a weighted average interest rate of 1.05 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 September 30, 2021 or December 31, 2020. Interest expense on borrowings for the three months ended September 30, 2021 and 2020 was $409,000 and $582,000, respectively. Interest expense on borrowings for the nine months ended September 30, 2021 and 2020 was $1.3 million and $1.8 million, respectively.

	September 30, 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		1.62	%		50,000		1.61	%
Advances due over 12 months through 24 months		50,000		0.97	%		50,000		1.62	%
Advances due over 24 months through 36 months		37,500		0.40	%		50,000		0.97	%
Outstanding advances	$	137,500		1.05	%	$	150,000		1.40	%

The following is financial data pertaining to FHLB advances:

	September 30, 2021			December 31, 2020
	(dollars in thousands)
Weighted-average interest rate at end of period		1.05	%		1.40	%
Weighted-average interest rate during the period		1.20	%		1.42	%
Average balance of FHLB advances	$	147,897		$	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 $2.17 billion of loans pledged as collateral with the FHLB as of September 30, 2021 and December 31, 2020. Remaining available borrowing capacity was $1.37 billion, subject to the FHLB statutory lending limit of $1.61 billion and $1.44 billion at September 30, 2021 and December 31, 2020, respectively.

The Bank also had securities with market values of $26.1 million and $27.3 million at September 30, 2021 and December 31, 2020, respectively, pledged with the FRB, which provided $24.6 million and $26.3 million in available borrowing capacity through the Fed Discount Window as of September 30, 2021 and December 31, 2020, respectively.

The Company issued Fixed-to-Floating Subordinated Notes (“2017 Notes”) of $100.0 million on March 21, 2017, with a final maturity on March 30, 2027. The 2017 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 2017 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 September 30, 2021 and December 31, 2020, the balance of 2017 Notes included in the Company’s Consolidated Balance Sheet, net of debt issuance cost, was $86.1 million and $98.5 million, respectively. During the three and nine months ended September 30, 2021, the Company acquired $12.7 million of the 2017 Notes on the open market at a premium to par of $343,000 and accelerated the amortization of $174,000 in debt issuance costs, resulting in $517,000 in incremental interest expense.

On August 20, 2021, the Company issued additional Fixed-to-Floating Subordinated Notes (“2021 Notes”) of $110.0 million with a final maturity date of September 1, 2031. The 2021 Notes have an initial fixed interest rate of 3.75 percent per annum, payable semiannually in arrears on March 1 and September 1 of each year, up to but excluding September 1, 2026. From and including September 1, 2026 and thereafter, the 2021 Notes will bear interest at a floating rate per annum equal to the Benchmark rate (which is expected to be the Three-Month Term SOFR) plus 310 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. If the then current three-month term SOFR rate is less than zero, the three-month SOFR will be deemed to be zero. Debt issuance cost was $2.0 million, which is being amortized through the Note’s

maturity date. At September 30, 2021, the balance of the 2021 Notes included in the Company’s Consolidated Balance Sheet, net of issuance cost, was $108.0 million.

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. 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 September 30, 2021 and December 31, 2020, the balance of Subordinated Debentures included in the Company’s Consolidated Balance Sheets, net of discount of $6.1 million and $6.4 million, was $20.7 million and $20.4 million, respectively. The amortization of discount was $102,000 and $99,000 for the three months ended September 30, 2021 and 2020, respectively, and $300,000 and $291,000, for the nine months ended September 30, 2021 and 2020, respectively.

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Earnings per Share

9 Months Ended

Sep. 30, 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, the 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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Basic EPS
Net income	$	26,565	$	16,344	$	65,346	$	27,870
Less: income allocated to unvested restricted stock		138		98		948		346
Income allocated to common shares	$	26,427	$	16,246	$	64,398	$	27,524
Weighted-average shares for basic EPS		30,474,391		30,464,263		30,222,978		30,276,462
Basic EPS (1)	$	0.87	$	0.53	$	2.13	$	0.91
Effect of dilutive stock options and unvested performance restricted stock		77,805		—		75,575		—
Diluted EPS
Income allocated to common shares	$	26,427	$	16,246	$	64,398	$	27,524
Weighted-average shares for diluted EPS		30,552,196		30,464,263		30,298,553		30,276,462
Diluted EPS (1)	$	0.86	$	0.53	$	2.13	$	0.91

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

There were no anti-dilutive stock options outstanding for the three months ended September 30, 2021 or 2020, respectively.

During the nine months ended September 30, 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. No such grants were issued during the three months ended September 30, 2021. These units have a three-year cliff vesting period and include dividend equivalent rights. Total performance stock units outstanding as of September 30, 2021 were 66,563 with an aggregate grant fair value of $1.0 million. As of September 30, 2020, there were no performance stock units outstanding.

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Regulatory Matters

9 Months Ended

Sep. 30, 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 September 30, 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 7.17 percent and 6.86 percent and the Company's capital conservation buffer was 6.18 percent and 5.93 percent as of September 30, 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 September 30, 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)
September 30, 2021
Total capital (to risk-weighted assets):
Hanmi Financial	$	890,412		17.18	%	$	414,662		8.00	%	N/A		N/A
Hanmi Bank	$	786,150		15.17	%	$	414,653		8.00	%	$	518,317		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	631,277		12.18	%	$	310,997		6.00	%	N/A		N/A
Hanmi Bank	$	721,131		13.91	%	$	310,990		6.00	%	$	414,653		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	610,548		11.78	%	$	233,248		4.50	%	N/A		N/A
Hanmi Bank	$	721,131		13.91	%	$	233,242		4.50	%	$	336,906		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	631,277		9.50	%	$	265,683		4.00	%	N/A		N/A
Hanmi Bank	$	721,131		10.86	%	$	265,650		4.00	%	$	332,063		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

9 Months Ended

Sep. 30, 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 September 30, 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 to sale or as circumstances require and the fair value adjustments are made to the asset based on its value prior to sale.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

As of September 30, 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)
September 30, 2021
Assets:
Securities available for sale:
U.S. Treasury securities	$	4,945	$	—	$	—	$	4,945
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		636,062		—		636,062
Collateralized mortgage obligations		—		99,883		—		99,883
Debt securities		—		98,436		—		98,436
Total U.S. government agency and sponsored agency obligations		—		834,381		—		834,381
Municipal bonds-tax exempt		—		67,670		—		67,670
Total securities available for sale	$	4,945	$	902,051	$	—	$	906,996
Derivative financial instruments	$	—	$	800	$	—	$	800
Liabilities:
Derivative financial instruments	$	—	$	769	$	—	$	769
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 September 30, 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)
September 30, 2021
Assets:
Collateral dependent loans (1)	$	12,325	$	—	$	—	$	12,325
Other real estate owned		675		—		—		675
Repossessed personal property		180		—		—		180
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 $12.3 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 assumptions for assets measured at fair value on a non-recurring basis at September 30, 2021 and December 31, 2020:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
September 30, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	2,628	Market approach	Market data comparison	(28)% to 23% / (6)%
Other		128	Market approach	Market data comparison	(10)% to 5% / (3)%
Construction		7,046	Market approach	Market data comparison	(20)% to 10% / (10)%
Residential/consumer loans		2,523	Market approach	Market data comparison	(20)% to 8% / (15)%
Total real estate loans		12,325
Total	$	12,325
Other real estate owned	$	675	Market approach	Market data comparison	(20)% to (5)% / (12)%
Repossessed personal property		180	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 September 30, 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:

	September 30, 2021
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	824,347	$	824,347	$	—	$	—
Securities available for sale		906,996		4,945		902,051		—
Loans held for sale		17,881		—		19,937		—
Loans receivable, net of allowance for credit losses		4,782,252		—		—		4,774,003
Accrued interest receivable		11,943		11,943		—		—
Financial liabilities:
Noninterest-bearing deposits		2,548,591		—		2,548,591		—
Interest-bearing deposits		3,180,945		—		—		3,180,790
Borrowings and subordinated debentures		352,344		—		137,991		211,880
Accrued interest payable		1,235		1,235		—		—

	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

9 Months Ended

Sep. 30, 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:

	September 30,		December 31,
	2021		2020
	(in thousands)
Commitments to extend credit	$	536,149	$	453,900
Standby letters of credit		49,006		47,169
Commercial letters of credit		60,234		54,547
Total undisbursed loan commitments	$	645,389	$	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 September 30,					Nine Months Ended September 30,
	2021		2020			2021		2020
	(in thousands)
Balance at beginning of period	$	3,643	$	6,347		$	2,792	$	2,397
Adjustment related to adoption of ASU 2016-13		—		—			—		(335	)
Adjusted balance		3,643		6,347			2,792		2,062
Provision expense (recovery) for credit losses		1,208		(658	)		2,059		3,627
Balance at end of period	$	4,851	$	5,689		$	4,851	$	5,689

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Leases

9 Months Ended

Sep. 30, 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 September 30, 2021, the outstanding balances for our right-of-use asset and lease liability were $48.2 million and $51.7 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 September 30, 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	$	7,986
2022		7,833
2023		7,201
2024		6,816
2025		5,706
Thereafter		21,413
Remaining lease commitments		56,955
Interest		(5,285	)
Present value of lease liability	$	51,670

Weighted average remaining lease terms for the Company's operating leases were 8.01 years and 8.75 years as of September 30, 2021 and December 31, 2020, respectively. Weighted average discount rates used for the Company's operating leases were 2.38 percent and 2.43 percent as of September 30, 2021 and December 31, 2020, respectively. Net lease expense recognized for the three months ended September 30, 2021 and 2020 was $2.3 million and $2.0 million, respectively. For the nine months ended September 30, 2021 and 2020, net lease expense recognized was $6.3 million and $6.1 million, respectively. This included operating lease costs of $2.0 million for each of the three months ended September 30, 2021 and 2020. For the nine months ended September 30, 2021 and 2020, operating lease costs were $6.1 million. Sublease income for operating leases was inconsequential for the three and nine months ended September 30, 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 $1.9 million and $1.7 million for the three months ended September 30, 2021 and 2020, respectively, and $6.0 million and $5.6 million for the nine months ended September 30, 2021 and 2020.

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Liquidity

9 Months Ended

Sep. 30, 2021

Liquidity [Abstract]

Liquidity

Note 14 — Liquidity

Hanmi Financial

As of September 30, 2021 and December 31, 2020, Hanmi Financial had $94.5 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 September 30, 2021 and December 31, 2020, the Bank had $137.5 million and $150.0 million, respectively, of FHLB advances and $144.5 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 September 30, 2021, the total borrowing capacity available based on pledged collateral and the remaining available borrowing capacity were $1.61 billion and $1.37 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 $24.6 million from the Federal Reserve Discount Window, to which the Bank pledged securities with a carrying value of $25.8 million, and had no borrowings as of September 30, 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 September 30, 2021.

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 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 September 30, 2021 and December 31, 2020.

As of September 30, 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	$	66,466	Other Assets	$	800	$	66,466	Other Liabilities	$	769
Total derivatives not designated as hedging instruments				$	800				$	769
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 for the three and nine months ended September 30, 2021 and 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
		Three Months Ended September 30,					Nine Months Ended September 30,
		2021		2020			2021		2020
		(in thousands)
Interest rate products	Other income	$	7	$	(77	)	$	92	$	21
Total		$	7	$	(77	)	$	92	$	21

The Company did not recognize any fee income from its derivative financial instruments for the three and nine months ended September 30, 2021. Fee income recognized from the Company's derivative financial instruments for the three and nine months ended September 30, 2020 was $0 and $512,000.

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 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 September 30, 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	$	800	$	—	$	800	$	769	$	31	$	—
Offsetting of Derivative Liabilities
As of September 30, 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	$	769	$	—	$	769	$	769	$	—	$	—
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 September 30, 2021 and December 31, 2020, the fair value of derivatives in a net asset position for counterparty transactions, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $800,000 and $1.1 million, respectively. As of September 30, 2021, the Company had posted $700,000 of collateral from its counterparties related to these agreements and is adequately collateralized since its net asset position was $31,000 ($800,000 fair value of assets less $769,000 fair value of liabilities) as of September 30, 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 September 30, 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

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 16 — Subsequent Events

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

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Organization and Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Fair Value Measurements

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

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

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

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

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

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

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

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

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

Loans held for sale - Loans held for sale includes the guaranteed portion of SBA 7(a) loans 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 September 30, 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 to sale or as circumstances require and the fair value adjustments are made to the asset based on its value prior to sale.

The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at September 30, 2021 and December 31, 2020:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
September 30, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	2,628	Market approach	Market data comparison	(28)% to 23% / (6)%
Other		128	Market approach	Market data comparison	(10)% to 5% / (3)%
Construction		7,046	Market approach	Market data comparison	(20)% to 10% / (10)%
Residential/consumer loans		2,523	Market approach	Market data comparison	(20)% to 8% / (15)%
Total real estate loans		12,325
Total	$	12,325
Other real estate owned	$	675	Market approach	Market data comparison	(20)% to (5)% / (12)%
Repossessed personal property		180	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 September 30, 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)

9 Months Ended

Sep. 30, 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)
September 30, 2021
U.S. Treasury securities	$	4,948	$	—	$	(3	)	$	4,945
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		641,256		138		(5,332	)		636,062
Collateralized mortgage obligations		100,244		190		(551	)		99,883
Debt securities		99,015		4		(583	)		98,436
Total U.S. government agency and sponsored agency obligations		840,515		332		(6,466	)		834,381
Municipal bonds-tax exempt		69,186		—		(1,516	)		67,670
Total securities available for sale	$	914,649	$	332	$	(7,985	)	$	906,996
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 September 30, 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.

	September 30, 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	$	2,019	$	2,029	$	13,305	$	13,435
Over one year through five years		94,431		94,039		139,876		140,100
Over five years through ten years		54,014		53,971		25,764		25,768
Over ten years		764,185		756,957		570,513		574,478
Total	$	914,649	$	906,996	$	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 September 30, 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)
September 30, 2021
U.S. Treasury securities	$	(3	)	$	4,945	$	1	$	—		$	—	$	—	$	(3	)	$	4,945	$	1
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities	$	(4,954	)	$	546,307		97	$	(378	)	$	14,699		2	$	(5,332	)	$	561,006		99
Collateralized mortgage obligations		(461	)		47,720		12		(90	)		5,277		1		(551	)		52,997		13
Debt securities		(583	)		93,432		17		—			—		—		(583	)		93,432		17
Total U.S. government agency and sponsored agency obligations		(5,998	)		687,459		126		(468	)		19,976		3		(6,466	)		707,435		129
Municipal bonds-tax exempt		(1,516	)		67,670		17		—			—		—		(1,516	)		67,670		17
Total	$	(7,517	)	$	760,074		144	$	(468	)	$	19,976		3	$	(7,985	)	$	780,050		147
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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Gross realized gains on sales of securities	$	—	$	—	$	99	$	15,712
Gross realized losses on sales of securities		—		—		—		—
Net realized gains on sales of securities	$	—	$	—	$	99	$	15,712
Proceeds from sales of securities	$	—	$	—	$	8,035	$	495,566

XML

Loans (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Loans

Loans consisted of the following as of the dates indicated:

	September 30, 2021			December 31, 2020
	(in thousands)
Real estate loans:
Commercial property
Retail	$	942,996		$	824,606
Hospitality		725,864			859,953
Other (1)		1,783,477			1,610,377
Total commercial property loans		3,452,337			3,294,936
Construction		76,168			58,882
Residential/consumer loans		354,861			345,831
Total real estate loans		3,883,366			3,699,649
Commercial and industrial loans		516,357			757,255
Leases receivable		459,142			423,264
Loans receivable		4,858,865			4,880,168
Allowance for credit losses		(76,613	)		(90,426	)
Loans receivable, net	$	4,782,252		$	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 September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	13,092		$	22,938		$	36,030
Originations and transfers		28,537			15,228			43,765
Sales		(27,513	)		(34,956	)		(62,469	)
Principal paydowns and amortization		(4	)		559			555
Balance at end of period	$	14,112		$	3,769		$	17,881
September 30, 2020
Balance at beginning of period	$	12,661		$	5,281		$	17,942
Originations		12,049			12,107			24,156
Sales		(20,621	)		(8,639	)		(29,260	)
Principal paydowns and amortization		—			(5	)		(5	)
Balance at end of period	$	4,089		$	8,745		$	12,834

The following is the activity for loans held for sale for the nine months ended September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	8,042		$	526		$	8,568
Originations and transfers		71,005			162,637			233,642
Sales		(64,930	)		(160,293	)		(225,223	)
Principal payoffs and amortization		(5	)		899			894
Balance at end of period	$	14,112		$	3,769		$	17,881
September 30, 2020
Balance at beginning of period	$	2,943		$	3,077		$	6,020
Originations		31,204			23,091			54,295
Sales		(30,053	)		(17,419	)		(47,472	)
Principal payoffs and amortization		(5	)		(5	)		(10	)
Balance at end of period	$	4,089		$	8,745		$	12,834

Allowance for Credit Losses by Portfolio Segment

The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Leases Receivable			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	63,029		$	8,059		$	12,284		$	83,372
Less loans charged off		—			186			791			977
Recoveries on loans receivable previously charged off		(1,162	)		(330	)		(350	)		(1,842	)
Provision (recovery) for credit losses		(8,128	)		507			(3	)		(7,624	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613
Individually evaluated	$	8		$	13		$	2,173		$	2,194
Collectively evaluated	$	56,055		$	8,697		$	9,667		$	74,419
Loans receivable	$	3,883,366		$	516,357		$	459,142		$	4,858,865
Individually evaluated	$	13,988		$	313		$	6,923		$	21,224
Collectively evaluated	$	3,869,378		$	516,044		$	452,219		$	4,837,641
September 30, 2020
Balance at beginning of period	$	56,418		$	13,388		$	16,524		$	86,330
Less loans charged off		687			383			1,081			2,151
Recoveries on loans receivable previously charged off		(1,497	)		(35	)		(213	)		(1,745	)
Provision (recovery) for credit losses		(6,744	)		7,809			(368	)		697
Ending balance	$	50,484		$	20,849		$	15,287		$	86,620
Individually evaluated	$	35		$	1,623		$	2,087		$	3,745
Collectively evaluated	$	50,449		$	19,226		$	13,200		$	82,875
Loans receivable	$	3,635,330		$	765,484		$	433,323		$	4,834,137
Individually evaluated	$	48,220		$	13,293		$	7,338		$	68,851
Collectively evaluated	$	3,587,110		$	752,191		$	425,985		$	4,765,286

The following table details the information on the allowance for credit losses by portfolio segment as of and for the nine months ended September 30, 2021 and 2020:

	Real Estate			Commercial and Industrial			Leases Receivable			Total
	(in thousands)
September 30, 2021
Balance at beginning of period	$	51,876		$	21,410		$	17,140			90,426
Less loans charged off		1,491			550			3,893			5,934
Recoveries on loans receivable previously charged off		(1,597	)		(602	)		(694	)		(2,893	)
Provision (recovery) for credit losses		4,081			(12,752	)		(2,101	)		(10,772	)
Ending balance	$	56,063		$	8,710		$	11,840		$	76,613
Individually evaluated	$	8		$	13		$	2,173		$	2,194
Collectively evaluated	$	56,055		$	8,697		$	9,667		$	74,419
Loans receivable	$	3,883,366		$	516,357		$	459,142		$	4,858,865
Individually evaluated	$	13,988		$	313		$	6,923		$	21,224
Collectively evaluated	$	3,869,378		$	516,044		$	452,219		$	4,837,641
September 30, 2020
Balance at beginning of period	$	36,435		$	16,206		$	8,767		$	61,408
Adjustment related to adoption of ASU 2016-13		14,027			(2,497	)		5,902			17,432
Adjusted balance as of January 1, 2020		50,462			13,709			14,669			78,840
Less loans charged off		14,920			12,972			3,306			31,198
Recoveries on loans receivable previously charged off		(1,653	)		(179	)		(401	)		(2,233	)
Provision for credit losses		13,289			19,932			3,523			36,744
Ending balance	$	50,484		$	20,849		$	15,287		$	86,620
Individually evaluated	$	35		$	1,623		$	2,087		$	3,745
Collectively evaluated	$	50,449		$	19,226		$	13,200		$	82,875
Loans receivable	$	3,635,330		$	765,484		$	433,323		$	4,834,137
Individually evaluated	$	48,220		$	13,293		$	7,338		$	68,851
Collectively evaluated	$	3,587,110		$	752,191		$	425,985		$	4,765,286

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

	September 30, 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	$	5,294	$	942,996		19.4	%	$	4,855	$	824,606		16.9	%
Hospitality		29,600		725,864		14.9	%		28,801		859,953		17.6	%
Other		12,842		1,783,477		36.7	%		13,991		1,610,377		33.0	%
Total commercial property loans		47,736		3,452,337		71.0	%		47,647		3,294,936		67.5	%
Construction		7,565		76,168		1.6	%		2,876		58,882		1.2	%
Residential/consumer loans		762		354,861		7.3	%		1,353		345,831		7.1	%
Total real estate loans		56,063		3,883,366		79.9	%		51,876		3,699,649		75.8	%
Commercial and industrial loans		8,710		516,357		10.6	%		21,410		757,255		15.5	%
Leases receivable		11,840		459,142		9.5	%		17,140		423,264		8.7	%
Total	$	76,613	$	4,858,865		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 September 30, 2021 and December 31, 2020, for which repayment is expected to be obtained through the sale of the underlying collateral.

	September 30, 2021		December 31, 2020
	Amortized Cost		Amortized Cost
	(in thousands)
Real estate loans:
Commercial property
Retail	$	2,628	$	6,330
Hospitality		—		20,612
Other (1)		128		8,410
Total commercial property loans		2,756		35,352
Construction		7,046		24,854
Residential/consumer loans		2,523		2,867
Total real estate loans		12,325		63,073
Commercial and industrial loans		—		41
Total	$	12,325	$	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)
September 30, 2021
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	827,018	$	722,970	$	485,633	$	434,177	$	298,246	$	495,077	$	48,666	$	3,311,787
Special Mention		—		18,937		16,444		—		2,713		56,380		1,864		96,338
Classified		—		—		5,477		22,586		3,672		12,477		—		44,212
Total commercial property		827,018		741,907		507,554		456,763		304,631		563,934		50,530		3,452,337
Construction
Risk Rating
Pass / Pass Watch		38,304		13,450		—		—		—		—		—		51,754
Special Mention		—		—		—		—		—		17,368		—		17,368
Classified		—		—		—		—		—		7,046		—		7,046
Total construction		38,304		13,450		—		—		—		24,414		—		76,168
Residential/consumer loans
Risk Rating
Pass / Pass-Watch		116,334		19,299		250		23,202		93,590		89,701		6,795		349,171
Special Mention		—		—		—		930		391		2,237		—		3,558
Classified		—		—		—		—		1,819		313		—		2,132
Total residential/consumer loans		116,334		19,299		250		24,132		95,800		92,251		6,795		354,861
Total real estate loans
Risk Rating
Pass / Pass-Watch		981,656		755,719		485,883		457,379		391,836		584,778		55,461		3,712,712
Special Mention		—		18,937		16,444		930		3,104		75,985		1,864		117,264
Classified		—		—		5,477		22,586		5,491		19,836		—		53,390
Total real estate loans		981,656		774,656		507,804		480,895		400,431		680,599		57,325		3,883,366
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		191,318		72,473		34,474		13,864		11,899		7,196		149,708		480,932
Special Mention		—		4,448		4,602		4,017		70		13		151		13,301
Classified		—		—		13,825		221		32		6,004		2,042		22,124
Total commercial and industrial loans		191,318		76,921		52,901		18,102		12,001		13,213		151,901		516,357
Leases receivable:
Risk Rating
Pass / Pass-Watch		171,682		88,342		116,991		57,878		14,673		2,653		—		452,219
Special Mention		—		—		—		—		—		—		—		—
Classified		148		474		4,174		1,418		410		299		—		6,923
Total leases receivable		171,830		88,816		121,165		59,296		15,083		2,952		—		459,142
Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,344,656		916,534		637,348		529,121		418,408		594,627		205,169		4,645,863
Special Mention		—		23,385		21,046		4,947		3,174		75,998		2,015		130,565
Classified		148		474		23,476		24,225		5,933		26,139		2,042		82,437
Total loans receivable	$	1,344,804	$	940,393	$	681,870	$	558,293	$	427,515	$	696,764	$	209,226	$	4,858,865

	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)
September 30, 2021
Real estate loans:
Commercial property
Payment performance
Performing	$	827,018	$	741,907	$	507,554	$	456,743	$	303,236	$	560,930	$	50,530	$	3,447,918
Nonperforming		—		—		—		20		1,395		3,004		—		4,419
Total commercial property		827,018		741,907		507,554		456,763		304,631		563,934		50,530		3,452,337
Construction
Payment performance
Performing		38,304		13,450		—		—		—		17,368		—		69,122
Nonperforming		—		—		—		—		—		7,046		—		7,046
Total construction		38,304		13,450		—		—		—		24,414		—		76,168
Residential/consumer loans
Payment performance
Performing		116,334		19,299		250		24,132		93,590		91,938		6,795		352,338
Nonperforming		—		—		—		—		2,210		313		—		2,523
Total residential/consumer loans		116,334		19,299		250		24,132		95,800		92,251		6,795		354,861
Total real estate loans
Payment performance
Performing		981,656		774,656		507,804		480,875		396,826		670,236		57,325		3,869,378
Nonperforming		—		—		—		20		3,605		10,363		—		13,988
Total real estate loans		981,656		774,656		507,804		480,895		400,431		680,599		57,325		3,883,366
Commercial and industrial loans:
Payment performance
Performing		191,318		76,921		52,862		18,102		11,995		12,945		151,901		516,044
Nonperforming		—		—		39		—		6		268		—		313
Total commercial and industrial loans		191,318		76,921		52,901		18,102		12,001		13,213		151,901		516,357
Leases receivable:
Payment performance
Performing		171,668		88,342		116,991		57,878		14,673		2,653		—		452,205
Nonperforming		162		474		4,174		1,418		410		299		—		6,937
Total leases receivable		171,830		88,816		121,165		59,296		15,083		2,952		—		459,142
Total loans receivable:
Payment performance
Performing		1,344,642		939,919		677,657		556,855		423,494		685,834		209,226		4,837,627
Nonperforming		162		474		4,213		1,438		4,021		10,930		—		21,238
Total loans receivable	$	1,344,804	$	940,393	$	681,870	$	558,293	$	427,515	$	696,764	$	209,226	$	4,858,865

	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)
September 30, 2021
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	942,996	$	942,996	$	—
Hospitality		—		—		—		—		725,864		725,864		—
Other		1,945		—		128		2,073		1,781,404		1,783,477		—
Total commercial property loans		1,945		—		128		2,073		3,450,264		3,452,337		—
Construction		—		—		—		—		76,168		76,168		—
Residential/consumer loans		1,641		—		1,404		3,045		351,816		354,861		—
Total real estate loans		3,586		—		1,532		5,118		3,878,248		3,883,366		—
Commercial and industrial loans		—		13		—		13		516,344		516,357		—
Leases receivable		2,891		1,532		1,636		6,059		453,083		459,142		13
Total loans receivable	$	6,477	$	1,545	$	3,168	$	11,190	$	4,847,675	$	4,858,865	$	13
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 September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(in thousands)
Interest income that would have been recognized had individually evaluated loans performed in accordance with their original terms	$	627		$	1,482		$	2,830		$	4,092
Less: Interest income recognized on individually evaluated loans		(106	)		(204	)		(362	)		(1,319	)
Interest foregone on individually evaluated loans	$	521		$	1,278		$	2,468		$	2,773

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

The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of September 30, 2021 and December 31, 2020.

	September 30, 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	$	2,628	$	—	$	—	$	2,628
Hospitality		—		—		—		—
Other		1,440		351		—		1,791
Total commercial property loans		4,068		351		—		4,419
Construction		7,046		—		—		7,046
Residential/consumer loans		2,523		—		—		2,523
Total real estate loans		13,637		351		—		13,988
Commercial and industrial loans		11		302		—		313
Leases receivable		785		6,139		13		6,937
Total	$	14,433	$	6,792	$	13	$	21,238
	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		20,611		—		—		20,611
Other		2,236		909		—		3,145
Total commercial property loans		29,178		909		—		30,087
Construction		24,854		—		—		24,854
Residential/consumer loans		2,350		—		—		2,350
Total real estate loans		56,382		909		—		57,291
Commercial and industrial loans		58		14,450		—		14,508
Leases receivable		2,318		8,916		—		11,234
Total	$	58,758	$	24,275	$	—	$	83,033

Non-Performing Assets

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

	September 30, 2021		December 31, 2020
	(in thousands)
Nonaccrual loans	$	21,225	$	83,033
Loans receivable 90 days or more past due and still accruing		13		—
Total nonperforming loans receivable		21,238		83,033
Other real estate owned ("OREO")		675		2,360
Total nonperforming assets	$	21,913	$	85,393

Troubled Debt Restructurings

The following table details TDRs as of September 30, 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)
September 30, 2021
Real estate loans	$	393	$	2,756	$	7,437	$	—	$	10,586	$	559	$	—	$	—	$	—	$	559
Commercial and industrial loans		—		130		—		—		130		—		—		1		11		12
Total	$	393	$	2,886	$	7,437	$	—	$	10,716	$	559	$	—	$	1	$	11	$	571
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 TDRs

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

	Three Months ended						Twelve Months ended
	September 30, 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
	Nine Months ended						Twelve Months ended
	September 30, 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)

9 Months Ended

Sep. 30, 2021

Transfers And Servicing [Abstract]

Summary of Changes in Servicing Assets

The changes in servicing assets for the three months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30,
	2021			2020
	(in thousands)
Servicing assets:
Balance at beginning of period	$	6,199		$	6,186
Addition related to sale of SBA loans		1,171			686
Amortization		(532	)		(524	)
Balance at end of period	$	6,838		$	6,348

The changes in servicing assets for the nine months ended September 30, 2021 and 2020 were as follows:

	Nine Months Ended September 30,
	2021			2020
	(in thousands)
Servicing assets:
Balance at beginning of period	$	6,212		$	6,956
Addition related to sale of SBA loans		2,328			1,040
Amortization		(1,702	)		(1,648	)
Balance at end of period	$	6,838		$	6,348

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Goodwill and Other Intangibles (Tables)

9 Months Ended

Sep. 30, 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:

		September 30, 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	$	(1,861	)	$	352	$	2,213	$	(1,746	)	$	467
Third-party originators intangible	7 years		483		(416	)		67		483		(369	)		114
Goodwill	N/A		11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,727	$	(2,277	)	$	11,450	$	13,727	$	(2,115	)	$	11,612

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Deposits (Tables)

9 Months Ended

Sep. 30, 2021

Deposits [Abstract]

Scheduled Maturities of Time Deposits

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

At September 30, 2021	Time Deposits of $250,000 or More		Other Time Deposits		Total
	(in thousands)
2021	$	104,321	$	159,946	$	264,267
2022		120,119		559,416		679,535
2023		1,518		33,220		34,738
2024		—		47,006		47,006
2025 and thereafter		264		3,801		4,065
Total	$	226,222	$	803,389	$	1,029,611
At December 31, 2020
2021	$	296,455	$	825,677	$	1,122,132
2022		14,315		115,832		130,147
2023		804		22,881		23,685
2024		—		5,382		5,382
2025 and thereafter		264		2,089		2,353
Total	$	311,838	$	971,861	$	1,283,699

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Borrowings and Subordinated Debentures (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Borrowings

	September 30, 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		1.62	%		50,000		1.61	%
Advances due over 12 months through 24 months		50,000		0.97	%		50,000		1.62	%
Advances due over 24 months through 36 months		37,500		0.40	%		50,000		0.97	%
Outstanding advances	$	137,500		1.05	%	$	150,000		1.40	%

Summary of Financial Data Pertaining to Federal Home Loan Bank Advances

The following is financial data pertaining to FHLB advances:

	September 30, 2021			December 31, 2020
	(dollars in thousands)
Weighted-average interest rate at end of period		1.05	%		1.40	%
Weighted-average interest rate during the period		1.20	%		1.42	%
Average balance of FHLB advances	$	147,897		$	156,601
Maximum amount outstanding at any month-end	$	150,000		$	300,000

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Basic EPS
Net income	$	26,565	$	16,344	$	65,346	$	27,870
Less: income allocated to unvested restricted stock		138		98		948		346
Income allocated to common shares	$	26,427	$	16,246	$	64,398	$	27,524
Weighted-average shares for basic EPS		30,474,391		30,464,263		30,222,978		30,276,462
Basic EPS (1)	$	0.87	$	0.53	$	2.13	$	0.91
Effect of dilutive stock options and unvested performance restricted stock		77,805		—		75,575		—
Diluted EPS
Income allocated to common shares	$	26,427	$	16,246	$	64,398	$	27,524
Weighted-average shares for diluted EPS		30,552,196		30,464,263		30,298,553		30,276,462
Diluted EPS (1)	$	0.86	$	0.53	$	2.13	$	0.91

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

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Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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)
September 30, 2021
Total capital (to risk-weighted assets):
Hanmi Financial	$	890,412		17.18	%	$	414,662		8.00	%	N/A		N/A
Hanmi Bank	$	786,150		15.17	%	$	414,653		8.00	%	$	518,317		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	631,277		12.18	%	$	310,997		6.00	%	N/A		N/A
Hanmi Bank	$	721,131		13.91	%	$	310,990		6.00	%	$	414,653		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	610,548		11.78	%	$	233,248		4.50	%	N/A		N/A
Hanmi Bank	$	721,131		13.91	%	$	233,242		4.50	%	$	336,906		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	631,277		9.50	%	$	265,683		4.00	%	N/A		N/A
Hanmi Bank	$	721,131		10.86	%	$	265,650		4.00	%	$	332,063		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)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

As of September 30, 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)
September 30, 2021
Assets:
Securities available for sale:
U.S. Treasury securities	$	4,945	$	—	$	—	$	4,945
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities		—		636,062		—		636,062
Collateralized mortgage obligations		—		99,883		—		99,883
Debt securities		—		98,436		—		98,436
Total U.S. government agency and sponsored agency obligations		—		834,381		—		834,381
Municipal bonds-tax exempt		—		67,670		—		67,670
Total securities available for sale	$	4,945	$	902,051	$	—	$	906,996
Derivative financial instruments	$	—	$	800	$	—	$	800
Liabilities:
Derivative financial instruments	$	—	$	769	$	—	$	769
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 September 30, 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)
September 30, 2021
Assets:
Collateral dependent loans (1)	$	12,325	$	—	$	—	$	12,325
Other real estate owned		675		—		—		675
Repossessed personal property		180		—		—		180
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 $12.3 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 Assumptions for Assets Measured at Fair Value on Non-Recurring Basis

The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at September 30, 2021 and December 31, 2020:

	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
September 30, 2021
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	2,628	Market approach	Market data comparison	(28)% to 23% / (6)%
Other		128	Market approach	Market data comparison	(10)% to 5% / (3)%
Construction		7,046	Market approach	Market data comparison	(20)% to 10% / (10)%
Residential/consumer loans		2,523	Market approach	Market data comparison	(20)% to 8% / (15)%
Total real estate loans		12,325
Total	$	12,325
Other real estate owned	$	675	Market approach	Market data comparison	(20)% to (5)% / (12)%
Repossessed personal property		180	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:

	September 30, 2021
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	824,347	$	824,347	$	—	$	—
Securities available for sale		906,996		4,945		902,051		—
Loans held for sale		17,881		—		19,937		—
Loans receivable, net of allowance for credit losses		4,782,252		—		—		4,774,003
Accrued interest receivable		11,943		11,943		—		—
Financial liabilities:
Noninterest-bearing deposits		2,548,591		—		2,548,591		—
Interest-bearing deposits		3,180,945		—		—		3,180,790
Borrowings and subordinated debentures		352,344		—		137,991		211,880
Accrued interest payable		1,235		1,235		—		—

	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)

9 Months Ended

Sep. 30, 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:

	September 30,		December 31,
	2021		2020
	(in thousands)
Commitments to extend credit	$	536,149	$	453,900
Standby letters of credit		49,006		47,169
Commercial letters of credit		60,234		54,547
Total undisbursed loan commitments	$	645,389	$	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 September 30,					Nine Months Ended September 30,
	2021		2020			2021		2020
	(in thousands)
Balance at beginning of period	$	3,643	$	6,347		$	2,792	$	2,397
Adjustment related to adoption of ASU 2016-13		—		—			—		(335	)
Adjusted balance		3,643		6,347			2,792		2,062
Provision expense (recovery) for credit losses		1,208		(658	)		2,059		3,627
Balance at end of period	$	4,851	$	5,689		$	4,851	$	5,689

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Future Minimum Rental Commitments Under Non-cancelable Operating Leases

At September 30, 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	$	7,986
2022		7,833
2023		7,201
2024		6,816
2025		5,706
Thereafter		21,413
Remaining lease commitments		56,955
Interest		(5,285	)
Present value of lease liability	$	51,670

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2021 and December 31, 2020.

As of September 30, 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	$	66,466	Other Assets	$	800	$	66,466	Other Liabilities	$	769
Total derivatives not designated as hedging instruments				$	800				$	769
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 for the three and nine months ended September 30, 2021 and 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
		Three Months Ended September 30,					Nine Months Ended September 30,
		2021		2020			2021		2020
		(in thousands)
Interest rate products	Other income	$	7	$	(77	)	$	92	$	21
Total		$	7	$	(77	)	$	92	$	21

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

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 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 September 30, 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	$	800	$	—	$	800	$	769	$	31	$	—
Offsetting of Derivative Liabilities
As of September 30, 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	$	769	$	—	$	769	$	769	$	—	$	—
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	Sep. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 914,649	$ 749,458
Gross Unrealized Gain	332	4,729
Gross Unrealized Loss	(7,985)	(406)
Estimated Fair Value	906,996	753,781
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	4,948	9,997
Gross Unrealized Gain		135
Gross Unrealized Loss	(3)
Estimated Fair Value	4,945	10,132
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	641,256	515,169
Gross Unrealized Gain	138	4,260
Gross Unrealized Loss	(5,332)	(188)
Estimated Fair Value	636,062	519,241
Collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	100,244	133,632
Gross Unrealized Gain	190	186
Gross Unrealized Loss	(551)	(217)
Estimated Fair Value	99,883	133,601
Debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	99,015	90,660
Gross Unrealized Gain	4	148
Gross Unrealized Loss	(583)	(1)
Estimated Fair Value	98,436	90,807
Total U.S. government agency and sponsored agency obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	840,515	739,461
Gross Unrealized Gain	332	4,594
Gross Unrealized Loss	(6,466)	(406)
Estimated Fair Value	834,381	$ 743,649
Municipal bonds-tax exempt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	69,186
Gross Unrealized Loss	(1,516)
Estimated Fair Value	$ 67,670

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Securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Investments Debt And Equity Securities [Abstract]
Available-for-Sale Within one year, Amortized Cost	$ 2,019	$ 13,305
Available-for-Sale Over one year through five years, Amortized Cost	94,431	139,876
Available-for-Sale Over five years through ten years, Amortized Cost	54,014	25,764
Available-for-Sale Over ten years, Amortized Cost	764,185	570,513
Amortized Cost	914,649	749,458
Available-for-Sale Within one year, Estimated Fair Value	2,029	13,435
Available-for-Sale Over one year through five years, Estimated Fair Value	94,039	140,100
Available-for-Sale Over five years through ten years, Estimated Fair Value	53,971	25,768
Available-for-Sale Over ten years, Estimated Fair Value	756,957	574,478
Estimated fair value	$ 906,996	$ 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	Sep. 30, 2021 USD ($) Security	Dec. 31, 2020 USD ($) Security
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (7,517)	$ (406)
Available-for-Sale Within One Year, Estimated Fair Value	$ 760,074	$ 178,681
Available-for-Sale Within One Year, Number of Securities | Security	144	32
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (468)
Available-for-Sale More than One Year, Estimated Fair Value	$ 19,976
Available-for-Sale More than One Year, Number of Securities | Security	3
Available-for-Sale, Gross Unrealized Loss	$ (7,985)	$ (406)
Available-for-Sale, Estimated Fair Value	$ 780,050	$ 178,681
Available-for-Sale, Number of Securities | Security	147	32
U.S. Treasury securities
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (3)
Available-for-Sale Within One Year, Estimated Fair Value	$ 4,945
Available-for-Sale Within One Year, Number of Securities | Security	1
Available-for-Sale, Gross Unrealized Loss	$ (3)
Available-for-Sale, Estimated Fair Value	$ 4,945
Available-for-Sale, Number of Securities | Security	1
Mortgage-backed securities
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (4,954)	$ (188)
Available-for-Sale Within One Year, Estimated Fair Value	$ 546,307	$ 76,023
Available-for-Sale Within One Year, Number of Securities | Security	97	10
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (378)
Available-for-Sale More than One Year, Estimated Fair Value	$ 14,699
Available-for-Sale More than One Year, Number of Securities | Security	2
Available-for-Sale, Gross Unrealized Loss	$ (5,332)	$ (188)
Available-for-Sale, Estimated Fair Value	$ 561,006	$ 76,023
Available-for-Sale, Number of Securities | Security	99	10
Collateralized mortgage obligations
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (461)	$ (217)
Available-for-Sale Within One Year, Estimated Fair Value	$ 47,720	$ 97,659
Available-for-Sale Within One Year, Number of Securities | Security	12	21
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (90)
Available-for-Sale More than One Year, Estimated Fair Value	$ 5,277
Available-for-Sale More than One Year, Number of Securities | Security	1
Available-for-Sale, Gross Unrealized Loss	$ (551)	$ (217)
Available-for-Sale, Estimated Fair Value	$ 52,997	$ 97,659
Available-for-Sale, Number of Securities | Security	13	21
Debt securities
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (583)	$ (1)
Available-for-Sale Within One Year, Estimated Fair Value	$ 93,432	$ 4,999
Available-for-Sale Within One Year, Number of Securities | Security	17	1
Available-for-Sale, Gross Unrealized Loss	$ (583)	$ (1)
Available-for-Sale, Estimated Fair Value	$ 93,432	$ 4,999
Available-for-Sale, Number of Securities | Security	17	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	$ (5,998)	$ (406)
Available-for-Sale Within One Year, Estimated Fair Value	$ 687,459	$ 178,681
Available-for-Sale Within One Year, Number of Securities | Security	126	32
Available-for-Sale More than One Year, Gross Unrealized Loss	$ (468)
Available-for-Sale More than One Year, Estimated Fair Value	$ 19,976
Available-for-Sale More than One Year, Number of Securities | Security	3
Available-for-Sale, Gross Unrealized Loss	$ (6,466)	$ (406)
Available-for-Sale, Estimated Fair Value	$ 707,435	$ 178,681
Available-for-Sale, Number of Securities | Security	129	32
Municipal bonds-tax exempt
Summary of Investment Holdings [Line Items]
Available-for-Sale Within One Year, Gross Unrealized Loss	$ (1,516)
Available-for-Sale Within One Year, Estimated Fair Value	$ 67,670
Available-for-Sale Within One Year, Number of Securities | Security	17
Available-for-Sale, Gross Unrealized Loss	$ (1,516)
Available-for-Sale, Estimated Fair Value	$ 67,670
Available-for-Sale, Number of Securities | Security	17

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Securities - Realized Gains and Losses on Sales of Investment Securities (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]
Gross realized gains on sales of securities			$ 99,000	$ 15,712,000
Net realized gains on sales of securities			99,000	15,712,000
Proceeds from sales of securities	$ 0	$ 0	$ 8,035,000	$ 495,566,000

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Securities - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Proceeds from sales of securities	$ 0	$ 0	$ 8,035,000	$ 495,566,000
Net gains in earnings resulting from sale of securities			99,000	15,712,000
Net unrealized gains recorded in accumulated other comprehensive income			142,000	$ 15,300,000
Available for sale securities pledged as collateral	$ 26,100,000		$ 26,100,000		$ 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%		10.00%

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Loans - Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	$ 4,858,865	$ 4,880,168
Allowance for credit losses	(76,613)	(90,426)
Loans receivable, net	4,782,252	4,789,742
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	3,883,366	3,699,649
Allowance for credit losses	(56,063)	(51,876)
Real Estate | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	942,996	824,606
Allowance for credit losses	(5,294)	(4,855)
Real Estate | Hospitality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	725,864	859,953
Allowance for credit losses	(29,600)	(28,801)
Real Estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	1,783,477	1,610,377
Real Estate | Total commercial property loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	3,452,337	3,294,936
Allowance for credit losses	(47,736)	(47,647)
Real Estate | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	76,168	58,882
Allowance for credit losses	(7,565)	(2,876)
Real Estate | Residential/Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	354,861	345,831
Allowance for credit losses	(762)	(1,353)
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	516,357	757,255
Allowance for credit losses	(8,710)	(21,410)
Leases Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross loans receivable	459,142	423,264
Allowance for credit losses	$ (11,840)	$ (17,140)

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Loans - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest on loans	$ 11,943,000		$ 11,943,000		$ 16,363,000
PPP loans	4,858,865,000		4,858,865,000		4,880,168,000
Loans pledged to secure advances	2,170,000,000		2,170,000,000		2,170,000,000
Loans held for sale, at the lower of cost or fair value	17,881,000	$ 12,834,000	17,881,000	$ 12,834,000	8,568,000	$ 36,030,000	$ 17,942,000	$ 6,020,000
Gains on sale of second draw PPP loans			13,475,000	3,478,000
Proceeds from sale of second draw PPP loans	62,469,000	$ 29,260,000	225,223,000	$ 47,472,000
TDR loans receivable	11,300,000		$ 11,300,000		25,000,000.0
Principal and interest due			3 months
Loans default payment past due period			30 days
Total recorded investment	0		$ 0		398,000
30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act, current	306,000		306,000
60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act, current	0		0
90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act, current	94,000		94,000
Pass/Pass-Watch
Accounts, Notes, Loans and Financing Receivable [Line Items]
PPP loans	4,645,863,000		4,645,863,000		4,663,021,000
Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
PPP loans	130,565,000		130,565,000		76,978,000
Classified
Accounts, Notes, Loans and Financing Receivable [Line Items]
PPP loans	82,437,000		82,437,000		140,169,000
Payment Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act			12,000,000.0		155,600,000
Loans Modified under provision of CARES Act, current	12,000,000.0		12,000,000.0		155.6
Payment Protection Program | 30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans previously modified under provision of CARES Act			4,400,000		4,900,000
Payment Protection Program | 60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans previously modified under provision of CARES Act			900,000		1,700,000
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			2,200,000		13,900,000
Payment Protection Program | Pass/Pass-Watch
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act			2,600,000		99,900,000
Payment Protection Program | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act			6,400,000		31,300,000
Payment Protection Program | Classified
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act			3,000,000.0		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	17,900,000		17,900,000		8,600,000
PPP Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gains on sale of second draw PPP loans	339,000		3,000,000.0
Proceeds from sale of second draw PPP loans	14,600,000		132,700,000
Accrued Interest | Payment Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
PPP loans	21,900,000		21,900,000		295,700,000
Modified Loans | Payment Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Modified under provision of CARES Act			12,000,000.0		155,600,000
Loans | Accrued Interest
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest on loans	10,200,000		10,200,000		15,200,000
Unpaid deferred interest receivable related to loans modified under CARES Act	3,600,000		3,600,000		7,500,000
Unpaid deferred interest receivable related to loans modified under CARES Act, net of valuation allowance	$ 311,000		$ 311,000		$ 1,700,000

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Loans - Activity for Loans Held for Sale (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	$ 36,030	$ 17,942	$ 8,568	$ 6,020
Originations and transfers	43,765	24,156	233,642	54,295
Sales	(62,469)	(29,260)	(225,223)	(47,472)
Principal paydowns and amortization	555	(5)	894	(10)
Balance at end of period	17,881	12,834	17,881	12,834
Real Estate
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	13,092	12,661	8,042	2,943
Originations and transfers	28,537	12,049	71,005	31,204
Sales	(27,513)	(20,621)	(64,930)	(30,053)
Principal paydowns and amortization	(4)		(5)	(5)
Balance at end of period	14,112	4,089	14,112	4,089
Commercial and Industrial
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward]
Balance at beginning of period	22,938	5,281	526	3,077
Originations and transfers	15,228	12,107	162,637	23,091
Sales	(34,956)	(8,639)	(160,293)	(17,419)
Principal paydowns and amortization	559	(5)	899	(5)
Balance at end of period	$ 3,769	$ 8,745	$ 3,769	$ 8,745

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Loans - Allowance for Credit Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance			$ 90,426
Ending balance	$ 76,613		76,613
Loans receivable	4,858,865		4,858,865		$ 4,880,168
Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	83,372	$ 86,330	90,426	$ 61,408
Adjusted balance				78,840
Less loans charged off	977	2,151	5,934	31,198
Recoveries on loans receivable previously charged off	(1,842)	(1,745)	(2,893)	(2,233)
Provision (recovery) for credit losses	(7,624)	697	(10,772)	36,744
Ending balance	76,613	86,620	76,613	86,620
Individually evaluated	2,194	3,745	2,194	3,745
Collectively evaluated	74,419	82,875	74,419	82,875
Loans receivable	4,858,865	4,834,137	4,858,865	4,834,137
Individually evaluated	21,224	68,851	21,224	68,851
Collectively evaluated	4,837,641	4,765,286	4,837,641	4,765,286
Non-PCI Loans and Leases | ASU 2016-13 | Adjustment Related to Adoption of ASU
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance				17,432
Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance			51,876
Ending balance	56,063		56,063
Loans receivable	3,883,366		3,883,366		3,699,649
Real Estate | Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	63,029	56,418	51,876	36,435
Adjusted balance				50,462
Less loans charged off		687	1,491	14,920
Recoveries on loans receivable previously charged off	(1,162)	(1,497)	(1,597)	(1,653)
Provision (recovery) for credit losses	(8,128)	(6,744)	4,081	13,289
Ending balance	56,063	50,484	56,063	50,484
Individually evaluated	8	35	8	35
Collectively evaluated	56,055	50,449	56,055	50,449
Loans receivable	3,883,366	3,635,330	3,883,366	3,635,330
Individually evaluated	13,988	48,220	13,988	48,220
Collectively evaluated	3,869,378	3,587,110	3,869,378	3,587,110
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				14,027
Commercial and Industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance			21,410
Ending balance	8,710		8,710
Loans receivable	516,357		516,357		757,255
Commercial and Industrial | Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	8,059	13,388	21,410	16,206
Adjusted balance				13,709
Less loans charged off	186	383	550	12,972
Recoveries on loans receivable previously charged off	(330)	(35)	(602)	(179)
Provision (recovery) for credit losses	507	7,809	(12,752)	19,932
Ending balance	8,710	20,849	8,710	20,849
Individually evaluated	13	1,623	13	1,623
Collectively evaluated	8,697	19,226	8,697	19,226
Loans receivable	516,357	765,484	516,357	765,484
Individually evaluated	313	13,293	313	13,293
Collectively evaluated	516,044	752,191	516,044	752,191
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	11,840		11,840
Loans receivable	459,142		459,142		$ 423,264
Leases Receivable | Non-PCI Loans and Leases
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	12,284	16,524	17,140	8,767
Adjusted balance				14,669
Less loans charged off	791	1,081	3,893	3,306
Recoveries on loans receivable previously charged off	(350)	(213)	(694)	(401)
Provision (recovery) for credit losses	(3)	(368)	(2,101)	3,523
Ending balance	11,840	15,287	11,840	15,287
Individually evaluated	2,173	2,087	2,173	2,087
Collectively evaluated	9,667	13,200	9,667	13,200
Loans receivable	459,142	433,323	459,142	433,323
Individually evaluated	6,923	7,338	6,923	7,338
Collectively evaluated	$ 452,219	$ 425,985	$ 452,219	425,985
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

XML

Loans - Allowance for Credit Losses by Portfolio Segment as a Percentage of Recorded Total Allowance for Credit Losses and Aggregate Recorded Investment of Loans Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 76,613	$ 90,426
Total Loans	$ 4,858,865	$ 4,880,168
Percentage of Total Loans	100.00%	100.00%
Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 56,063	$ 51,876
Total Loans	$ 3,883,366	$ 3,699,649
Percentage of Total Loans	79.90%	75.80%
Real Estate | Retail
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 5,294	$ 4,855
Total Loans	$ 942,996	$ 824,606
Percentage of Total Loans	19.40%	16.90%
Real Estate | Hospitality
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 29,600	$ 28,801
Total Loans	$ 725,864	$ 859,953
Percentage of Total Loans	14.90%	17.60%
Real Estate | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 12,842	$ 13,991
Total Loans	$ 1,783,477	$ 1,610,377
Percentage of Total Loans	36.70%	33.00%
Real Estate | Total commercial property loans
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 47,736	$ 47,647
Total Loans	$ 3,452,337	$ 3,294,936
Percentage of Total Loans	71.00%	67.50%
Real Estate | Construction
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 7,565	$ 2,876
Total Loans	$ 76,168	$ 58,882
Percentage of Total Loans	1.60%	1.20%
Real Estate | Residential/Consumer Loans
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 762	$ 1,353
Total Loans	$ 354,861	$ 345,831
Percentage of Total Loans	7.30%	7.10%
Commercial and Industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 8,710	$ 21,410
Total Loans	$ 516,357	$ 757,255
Percentage of Total Loans	10.60%	15.50%
Leases Receivable
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance Amount	$ 11,840	$ 17,140
Total Loans	$ 459,142	$ 423,264
Percentage of Total Loans	9.50%	8.70%

XML

Loans - Summary of Amortized Cost Basis of Collateral Dependent Loans By Class of Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	$ 12,325	$ 63,114
Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	12,325	63,073
Real Estate | Retail
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	2,628	6,330
Real Estate | Hospitality
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost		20,612
Real Estate | Other
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	128	8,410
Real Estate | Total commercial property loans
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	2,756	35,352
Real Estate | Construction
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	7,046	24,854
Real Estate | Residential/Consumer Loans
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost	$ 2,523	2,867
Commercial and Industrial
Loans And Leases Receivable Disclosure [Line Items]
Amortized Cost		$ 41

XML

Loans - Loans by Vintage Year and Risk Rating (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 1,344,804	$ 1,523,568
2020	940,393	771,077
2019	681,870	691,413
2018	558,293	540,807
2017	427,515	582,274
Prior	696,764	580,450
Revolving Loans Amortized Cost Basis	209,226	190,579
Loans receivable	4,858,865	4,880,168
Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,344,656	1,502,486
2020	916,534	753,938
2019	637,348	661,862
2018	529,121	519,885
2017	418,408	515,045
Prior	594,627	524,447
Revolving Loans Amortized Cost Basis	205,169	185,358
Loans receivable	4,645,863	4,663,021
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021		20,630
2020	23,385	6,993
2019	21,046	13,996
2018	4,947	3,610
2017	3,174	15,539
Prior	75,998	15,763
Revolving Loans Amortized Cost Basis	2,015	447
Loans receivable	130,565	76,978
Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2021	148	452
2020	474	10,146
2019	23,476	15,555
2018	24,225	17,312
2017	5,933	51,690
Prior	26,139	40,240
Revolving Loans Amortized Cost Basis	2,042	4,774
Loans receivable	82,437	140,169
Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2021	981,656	995,968
2020	774,656	521,549
2019	507,804	533,207
2018	480,895	481,117
2017	400,431	562,499
Prior	680,599	566,543
Revolving Loans Amortized Cost Basis	57,325	38,766
Loans receivable	3,883,366	3,699,649
Real Estate | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	981,656	982,288
2020	755,719	515,537
2019	485,883	516,344
2018	457,379	471,646
2017	391,836	500,485
Prior	584,778	513,370
Revolving Loans Amortized Cost Basis	55,461	38,636
Loans receivable	3,712,712	3,538,306
Real Estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021		13,680
2020	18,937	2,484
2019	16,444	9,560
2018	930	2,500
2017	3,104	15,508
Prior	75,985	14,689
Revolving Loans Amortized Cost Basis	1,864
Loans receivable	117,264	58,421
Real Estate | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2020		3,528
2019	5,477	7,303
2018	22,586	6,971
2017	5,491	46,506
Prior	19,836	38,484
Revolving Loans Amortized Cost Basis		130
Loans receivable	53,390	102,922
Real Estate | Total commercial property loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	827,018	934,556
2020	741,907	519,974
2019	507,554	495,154
2018	456,763	350,042
2017	304,631	454,683
Prior	563,934	509,114
Revolving Loans Amortized Cost Basis	50,530	31,413
Loans receivable	3,452,337	3,294,936
Real Estate | Total commercial property loans | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	827,018	920,876
2020	722,970	513,962
2019	485,633	479,221
2018	434,177	343,659
2017	298,246	418,361
Prior	495,077	459,367
Revolving Loans Amortized Cost Basis	48,666	31,283
Loans receivable	3,311,787	3,166,729
Real Estate | Total commercial property loans | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021		13,680
2020	18,937	2,484
2019	16,444	8,630
2018		1,671
2017	2,713	14,971
Prior	56,380	11,907
Revolving Loans Amortized Cost Basis	1,864
Loans receivable	96,338	53,343
Real Estate | Total commercial property loans | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2020		3,528
2019	5,477	7,303
2018	22,586	4,712
2017	3,672	21,351
Prior	12,477	37,840
Revolving Loans Amortized Cost Basis		130
Loans receivable	44,212	74,864
Real Estate | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2021	38,304	33,415
2020	13,450	613
2017		24,854
Prior	24,414
Loans receivable	76,168	58,882
Real Estate | Construction | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	38,304	33,415
2020	13,450	613
Loans receivable	51,754	34,028
Real Estate | Construction | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Prior	17,368
Loans receivable	17,368
Real Estate | Construction | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2017		24,854
Prior	7,046
Loans receivable	7,046	24,854
Real Estate | Residential/Consumer Loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	116,334	27,997
2020	19,299	962
2019	250	38,053
2018	24,132	131,075
2017	95,800	82,962
Prior	92,251	57,429
Revolving Loans Amortized Cost Basis	6,795	7,353
Loans receivable	354,861	345,831
Real Estate | Residential/Consumer Loans | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	116,334	27,997
2020	19,299	962
2019	250	37,123
2018	23,202	127,987
2017	93,590	82,124
Prior	89,701	54,003
Revolving Loans Amortized Cost Basis	6,795	7,353
Loans receivable	349,171	337,549
Real Estate | Residential/Consumer Loans | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2019		930
2018	930	829
2017	391	537
Prior	2,237	2,782
Loans receivable	3,558	5,078
Real Estate | Residential/Consumer Loans | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2018		2,259
2017	1,819	301
Prior	313	644
Loans receivable	2,132	3,204
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2021	191,318	413,436
2020	76,921	78,558
2019	52,901	63,661
2018	18,102	28,409
2017	12,001	8,875
Prior	13,213	12,503
Revolving Loans Amortized Cost Basis	151,901	151,813
Loans receivable	516,357	757,255
Commercial and Industrial | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	191,318	406,486
2020	72,473	73,159
2019	34,474	54,110
2018	13,864	17,834
2017	11,899	4,464
Prior	7,196	9,910
Revolving Loans Amortized Cost Basis	149,708	146,722
Loans receivable	480,932	712,685
Commercial and Industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021		6,950
2020	4,448	4,509
2019	4,602	4,436
2018	4,017	1,110
2017	70	31
Prior	13	1,074
Revolving Loans Amortized Cost Basis	151	447
Loans receivable	13,301	18,557
Commercial and Industrial | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2020		890
2019	13,825	5,115
2018	221	9,465
2017	32	4,380
Prior	6,004	1,519
Revolving Loans Amortized Cost Basis	2,042	4,644
Loans receivable	22,124	26,013
Leases Receivable
Financing Receivable, Credit Quality Indicator [Line Items]
2021	171,830	114,164
2020	88,816	170,970
2019	121,165	94,545
2018	59,296	31,281
2017	15,083	10,900
Prior	2,952	1,404
Loans receivable	459,142	423,264
Leases Receivable | Pass/Pass-Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2021	171,682	113,712
2020	88,342	165,242
2019	116,991	91,408
2018	57,878	30,405
2017	14,673	10,096
Prior	2,653	1,167
Loans receivable	452,219	412,030
Leases Receivable | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
2021	148	452
2020	474	5,728
2019	4,174	3,137
2018	1,418	876
2017	410	804
Prior	299	237
Loans receivable	$ 6,923	$ 11,234

XML

Loans - Loans by Vintage Year and Payment Performance (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 1,344,804	$ 1,523,568
2020	940,393	771,077
2019	681,870	691,413
2018	558,293	540,807
2017	427,515	582,274
Prior	696,764	580,450
Revolving Loans Amortized Cost Basis	209,226	190,579
Loans receivable	4,858,865	4,880,168
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,344,642	1,523,116
2020	939,919	764,067
2019	677,657	684,319
2018	556,855	526,733
2017	423,494	538,862
Prior	685,834	569,589
Revolving Loans Amortized Cost Basis	209,226	190,449
Loans receivable	4,837,627	4,797,135
Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2021	162	452
2020	474	7,010
2019	4,213	7,094
2018	1,438	14,074
2017	4,021	43,412
Prior	10,930	10,861
Revolving Loans Amortized Cost Basis		130
Loans receivable	21,238	83,033
Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
2021	981,656	995,968
2020	774,656	521,549
2019	507,804	533,207
2018	480,895	481,117
2017	400,431	562,499
Prior	680,599	566,543
Revolving Loans Amortized Cost Basis	57,325	38,766
Loans receivable	3,883,366	3,699,649
Real Estate | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	981,656	995,968
2020	774,656	521,157
2019	507,804	533,185
2018	480,875	477,326
2017	396,826	519,891
Prior	670,236	556,195
Revolving Loans Amortized Cost Basis	57,325	38,636
Loans receivable	3,869,378	3,642,358
Real Estate | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2020		392
2019		22
2018	20	3,791
2017	3,605	42,608
Prior	10,363	10,348
Revolving Loans Amortized Cost Basis		130
Loans receivable	13,988	57,291
Real Estate | Total commercial property loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	827,018	934,556
2020	741,907	519,974
2019	507,554	495,154
2018	456,763	350,042
2017	304,631	454,683
Prior	563,934	509,114
Revolving Loans Amortized Cost Basis	50,530	31,413
Loans receivable	3,452,337	3,294,936
Real Estate | Total commercial property loans | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	827,018	934,556
2020	741,907	519,582
2019	507,554	495,132
2018	456,743	347,656
2017	303,236	437,230
Prior	560,930	499,410
Revolving Loans Amortized Cost Basis	50,530	31,283
Loans receivable	3,447,918	3,264,849
Real Estate | Total commercial property loans | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2020		392
2019		22
2018	20	2,386
2017	1,395	17,453
Prior	3,004	9,704
Revolving Loans Amortized Cost Basis		130
Loans receivable	4,419	30,087
Real Estate | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2021	38,304	33,415
2020	13,450	613
2017		24,854
Prior	24,414
Loans receivable	76,168	58,882
Real Estate | Construction | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	38,304	33,415
2020	13,450	613
Prior	17,368
Loans receivable	69,122	34,028
Real Estate | Construction | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2017		24,854
Prior	7,046
Loans receivable	7,046	24,854
Real Estate | Residential/Consumer Loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	116,334	27,997
2020	19,299	962
2019	250	38,053
2018	24,132	131,075
2017	95,800	82,962
Prior	92,251	57,429
Revolving Loans Amortized Cost Basis	6,795	7,353
Loans receivable	354,861	345,831
Real Estate | Residential/Consumer Loans | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	116,334	27,997
2020	19,299	962
2019	250	38,053
2018	24,132	129,670
2017	93,590	82,661
Prior	91,938	56,785
Revolving Loans Amortized Cost Basis	6,795	7,353
Loans receivable	352,338	343,481
Real Estate | Residential/Consumer Loans | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2018		1,405
2017	2,210	301
Prior	313	644
Loans receivable	2,523	2,350
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2021	191,318	413,436
2020	76,921	78,558
2019	52,901	63,661
2018	18,102	28,409
2017	12,001	8,875
Prior	13,213	12,503
Revolving Loans Amortized Cost Basis	151,901	151,813
Loans receivable	516,357	757,255
Commercial and Industrial | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	191,318	413,436
2020	76,921	77,668
2019	52,862	59,726
2018	18,102	19,002
2017	11,995	8,875
Prior	12,945	12,227
Revolving Loans Amortized Cost Basis	151,901	151,813
Loans receivable	516,044	742,747
Commercial and Industrial | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2020		890
2019	39	3,935
2018		9,407
2017	6
Prior	268	276
Loans receivable	313	14,508
Leases Receivable
Financing Receivable, Credit Quality Indicator [Line Items]
2021	171,830	114,164
2020	88,816	170,970
2019	121,165	94,545
2018	59,296	31,281
2017	15,083	10,900
Prior	2,952	1,404
Loans receivable	459,142	423,264
Leases Receivable | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2021	171,668	113,712
2020	88,342	165,242
2019	116,991	91,408
2018	57,878	30,405
2017	14,673	10,096
Prior	2,653	1,167
Loans receivable	452,205	412,030
Leases Receivable | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2021	162	452
2020	474	5,728
2019	4,174	3,137
2018	1,418	876
2017	410	804
Prior	299	237
Loans receivable	$ 6,937	$ 11,234

XML

Loans - Analysis of Past Due Loans, Disaggregated by Loan Class, Non-PCI (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Past due loans receivable	$ 11,190	$ 53,640
Loans receivable	4,858,865	4,880,168
Accruing 90 days or more past due loans receivable	13
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	6,477	9,026
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,545	15,081
90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,168	29,533
Current
Financing Receivable, Past Due [Line Items]
Loans receivable	4,847,675	4,826,528
Real Estate
Financing Receivable, Past Due [Line Items]
Past due loans receivable	5,118	30,332
Loans receivable	3,883,366	3,699,649
Real Estate | Retail
Financing Receivable, Past Due [Line Items]
Loans receivable	942,996	824,606
Real Estate | Hospitality
Financing Receivable, Past Due [Line Items]
Past due loans receivable		11,076
Loans receivable	725,864	859,953
Real Estate | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	2,073	731
Loans receivable	1,783,477	1,610,377
Real Estate | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	2,073	11,807
Loans receivable	3,452,337	3,294,936
Real Estate | Construction
Financing Receivable, Past Due [Line Items]
Past due loans receivable		12,807
Loans receivable	76,168	58,882
Real Estate | Residential/Consumer Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,045	5,718
Loans receivable	354,861	345,831
Real Estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	3,586	4,693
Real Estate | 30-59 Days Past Due | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,945
Real Estate | 30-59 Days Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,945
Real Estate | 30-59 Days Past Due | Residential/Consumer Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,641	4,693
Real Estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable		13,268
Real Estate | 60-89 Days Past Due | Construction
Financing Receivable, Past Due [Line Items]
Past due loans receivable		12,807
Real Estate | 60-89 Days Past Due | Residential/Consumer Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable		461
Real Estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,532	12,371
Real Estate | 90 Days or More Past Due | Hospitality
Financing Receivable, Past Due [Line Items]
Past due loans receivable		11,076
Real Estate | 90 Days or More Past Due | Other
Financing Receivable, Past Due [Line Items]
Past due loans receivable	128	731
Real Estate | 90 Days or More Past Due | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	128	11,807
Real Estate | 90 Days or More Past Due | Residential/Consumer Loans
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,404	564
Real Estate | Current
Financing Receivable, Past Due [Line Items]
Loans receivable	3,878,248	3,669,317
Real Estate | Current | Retail
Financing Receivable, Past Due [Line Items]
Loans receivable	942,996	824,606
Real Estate | Current | Hospitality
Financing Receivable, Past Due [Line Items]
Loans receivable	725,864	848,877
Real Estate | Current | Other
Financing Receivable, Past Due [Line Items]
Loans receivable	1,781,404	1,609,646
Real Estate | Current | Total commercial property loans
Financing Receivable, Past Due [Line Items]
Loans receivable	3,450,264	3,283,129
Real Estate | Current | Construction
Financing Receivable, Past Due [Line Items]
Loans receivable	76,168	46,075
Real Estate | Current | Residential/Consumer Loans
Financing Receivable, Past Due [Line Items]
Loans receivable	351,816	340,113
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Past due loans receivable	13	12,796
Loans receivable	516,357	757,255
Commercial and Industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable		282
Commercial and Industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	13	27
Commercial and Industrial | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable		12,487
Commercial and Industrial | Current
Financing Receivable, Past Due [Line Items]
Loans receivable	516,344	744,459
Leases Receivable
Financing Receivable, Past Due [Line Items]
Past due loans receivable	6,059	10,512
Loans receivable	459,142	423,264
Accruing 90 days or more past due loans receivable	13
Leases Receivable | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	2,891	4,051
Leases Receivable | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,532	1,786
Leases Receivable | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due loans receivable	1,636	4,675
Leases Receivable | Current
Financing Receivable, Past Due [Line Items]
Loans receivable	$ 453,083	$ 412,752

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Loans - Summary of Interest Foregone on Non-accrual Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Receivables [Abstract]
Interest income that would have been recognized had individually evaluated loans performed in accordance with their original terms	$ 627	$ 1,482	$ 2,830	$ 4,092
Less: Interest income recognized on individually evaluated loans	(106)	(204)	(362)	(1,319)
Interest foregone on individually evaluated loans	$ 521	$ 1,278	$ 2,468	$ 2,773

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Loans - Schedule of Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due 90 Days and Still Accruing (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	$ 14,433	$ 58,758
Nonaccrual Loans With Allowance for Credit Losses	6,792	24,275
Loans Past Due 90 Days Still Accruing	13
Total Nonperforming Loans	21,238	83,033
Real Estate
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	13,637	56,382
Nonaccrual Loans With Allowance for Credit Losses	351	909
Total Nonperforming Loans	13,988	57,291
Real Estate | Retail
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	2,628	6,331
Total Nonperforming Loans	2,628	6,331
Real Estate | Hospitality
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses		20,611
Total Nonperforming Loans		20,611
Real Estate | Other
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	1,440	2,236
Nonaccrual Loans With Allowance for Credit Losses	351	909
Total Nonperforming Loans	1,791	3,145
Real Estate | Total commercial property loans
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	4,068	29,178
Nonaccrual Loans With Allowance for Credit Losses	351	909
Total Nonperforming Loans	4,419	30,087
Real Estate | Construction
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	7,046	24,854
Total Nonperforming Loans	7,046	24,854
Real Estate | Residential/Consumer Loans
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	2,523	2,350
Total Nonperforming Loans	2,523	2,350
Commercial and Industrial
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	11	58
Nonaccrual Loans With Allowance for Credit Losses	302	14,450
Total Nonperforming Loans	313	14,508
Leases Receivable
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual Loans With No Allowance for Credit Losses	785	2,318
Nonaccrual Loans With Allowance for Credit Losses	6,139	8,916
Loans Past Due 90 Days Still Accruing	13
Total Nonperforming Loans	$ 6,937	$ 11,234

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Loans - Non-Performing Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Receivables [Abstract]
Nonaccrual loans	$ 21,225	$ 83,033
Loans receivable 90 days or more past due and still accruing	13
Total Nonperforming Loans	21,238	83,033
Other real estate owned ("OREO")	675	2,360
Total nonperforming assets	$ 21,913	$ 85,393

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Loans - Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Nonaccrual TDRs
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	$ 10,716	$ 17,065
Nonaccrual TDRs | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	10,586	16,921
Nonaccrual TDRs | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	130	144
Nonaccrual TDRs | Deferral of Principal
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	393	1,095
Nonaccrual TDRs | Deferral of Principal | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	393	1,095
Nonaccrual TDRs | Deferral of Principal and Interest
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	2,886	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	2,756	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	130	144
Nonaccrual TDRs | Reduction of Principal and Interest
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	7,437	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	7,437	12,492
Accrual TDRs
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	571	7,930
Accrual TDRs | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	559	7,870
Accrual TDRs | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	12	60
Accrual TDRs | Deferral of Principal
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	559	513
Accrual TDRs | Deferral of Principal | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	559	513
Accrual TDRs | Reduction of Principal and Interest
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	1	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	1	4
Accrual TDRs | Extension of Maturity
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	11	7,346
Accrual TDRs | Extension of Maturity | Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend		7,290
Accrual TDRs | Extension of Maturity | Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	$ 11	$ 56

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Loans - Summary of Loans by Class Modified as TDRs (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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Transfers And Servicing [Abstract]
Balance at beginning of period	$ 6,199	$ 6,186	$ 6,212	$ 6,956
Addition related to sale of SBA loans	1,171	686	2,328	1,040
Amortization	(532)	(524)	(1,702)	(1,648)
Balance at end of period	$ 6,838	$ 6,348	$ 6,838	$ 6,348

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Servicing Assets - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Serviced loans sold to unaffiliated parties	$ 459,800,000		$ 459,800,000		$ 429,400,000
Amortization expense	532,000	$ 524,000	1,700,000	$ 1,600,000
Fair value of servicing rights	8,100,000		$ 8,100,000		$ 6,900,000
Minimum
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Discount rates ranging			8.60%		9.30%
Prepayment speeds			11.00%		11.80%
Maximum [Member]
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Discount rates ranging			10.50%		12.20%
Prepayment speeds			17.40%		19.10%
Other Operating Income
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items]
Servicing fee income	$ 1,100,000	$ 1,100,000	$ 3,400,000	$ 3,400,000

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Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Provision (benefit) for income taxes for continuing operations	$ 10,656,000	$ 6,439,000	$ 27,042,000	$ 11,945,000
Effective income tax rate	28.60%	28.30%	29.30%	30.00%
Valuation allowance	$ 4,400,000		$ 4,400,000		$ 4,400,000
Net deferred tax asset	42,700,000		42,700,000		41,400,000
Net current tax asset	175,000		$ 175,000		$ 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 ($)			9 Months Ended	12 Months Ended
	Oct. 27, 2016	Aug. 31, 2014	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Impairment of goodwill and other intangible assets				$ 0
Goodwill and other intangible assets triggering event			No triggering event has occurred subsequent to December 31, 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

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Goodwill and Other Intangibles - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (2,277)	$ (2,115)
Goodwill	11,031	11,031
Gross carrying amount	13,727	13,727
Net carrying amount	$ 11,450	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	(1,861)	(1,746)
Net carrying amount, excluding goodwill	$ 352	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	(416)	(369)
Net carrying amount, excluding goodwill	$ 67	$ 114

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Deposits - Additional Information (Detail) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Time deposits of $250,000 or more	$ 1,029,611,000	$ 1,283,699,000
Accrued interest payable on deposits	1,200,000	4,600,000
Total deposits reclassified to loans due to overdrafts	259,000	241,000
Time Deposits of $250,000 or More
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Time deposits of $250,000 or more	226,222,000	311,838,000
Time deposits at or exceeding the FDIC insurance limit of $250,000	$ 188,200,000	$ 265,600,000

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Deposits - Scheduled Maturities of Time Deposits (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Restricted Cash And Cash Equivalents Items [Line Items]
2021	$ 264,267
2022	679,535	$ 1,122,132
2023	34,738	130,147
2024	47,006	23,685
2024		5,382
2025 and thereafter	4,065
2025 and thereafter		2,353
Total	1,029,611	1,283,699
Time Deposits of $250,000 or More
Restricted Cash And Cash Equivalents Items [Line Items]
2021	104,321
2022	120,119	296,455
2023	1,518	14,315
2024		804
2025 and thereafter	264
2025 and thereafter		264
Total	226,222	311,838
Other Time Deposits
Restricted Cash And Cash Equivalents Items [Line Items]
2021	159,946
2022	559,416	825,677
2023	33,220	115,832
2024	47,006	22,881
2024		5,382
2025 and thereafter	3,801
2025 and thereafter		2,089
Total	$ 803,389	$ 971,861

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Borrowings and Subordinated Debentures - Additional Information (Detail) - USD ($)			1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 20, 2021	Mar. 21, 2017	Dec. 31, 2005	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2014
Debt Instrument [Line Items]
Overnight advances from federal home loan banks				$ 0		$ 0		$ 0
Advances from the FHLB				$ 137,500,000		$ 137,500,000		$ 150,000,000.0
Weighted average interest rate of outstanding advances (percent)				1.05%		1.05%		1.40%
Interest expense on borrowings				$ 409,000	$ 582,000	$ 1,332,000	$ 1,838,000
Borrowing				0		0		$ 0
Pledged loans receivable, carrying value				2,170,000,000		2,170,000,000		2,170,000,000
Remaining available borrowing capacity				1,370,000,000		1,370,000,000
FHLB statutory lending limit				1,610,000,000		1,610,000,000		1,440,000,000
Loans pledged with FRB				26,100,000		26,100,000		27,300,000
Borrowing capacity through Fed Discount Window				24,600,000		24,600,000		26,300,000
Subordinated debentures issued				224,100,000		224,100,000		126,800,000
Debt instrument, maturity date	Sep. 01, 2031	Mar. 30, 2027
2017 Notes
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				86,100,000		86,100,000		98,500,000
Subordinated notes acquired				12,700,000		12,700,000
Debt instrument, premium				343,000,000,000		343,000,000,000
Amortization of debt issuance costs						174,000
Incremental interest expense						517,000
2021 Notes
Debt Instrument [Line Items]
Subordinated debentures issued	$ 110,000,000.0
Fixed interest rate	3.75%
Amortization of debt issuance costs	$ 2,000,000.0
Debt issuance costs, net				108,000,000.0		$ 108,000,000.0
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				20,700,000		$ 20,700,000		20,400,000
Unpaid principal balance									$ 26,800,000
Estimated fair value									18,500,000
Debt instrument discount				6,100,000		$ 6,100,000		$ 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				$ 102,000	$ 99,000	$ 300,000	$ 291,000
3-month London Interbank Offered Rate (LIBOR) | 2017 Notes
Debt Instrument [Line Items]
Basis spread		3.315%
3-month London Interbank Offered Rate (LIBOR) | Subordinated debentures | Central Bancorp, Inc
Debt Instrument [Line Items]
Basis spread			140.00%
Benchmark Rate | 2021 Notes
Debt Instrument [Line Items]
Basis spread	3.10%

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Borrowings and Subordinated Debentures - Schedule of Borrowings (Detail) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Outstanding Balance
Overnight advances	$ 0	$ 0
Outstanding advances	$ 137,500,000	$ 150,000,000.0
Weighted Average Rate
Outstanding advances (percent)	1.05%	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	37,500,000	50,000,000
Outstanding advances	$ 137,500,000	$ 150,000,000
Weighted Average Rate
Overnight advances (percent)	0.00%	0.00%
Advances due within 12 months (percent)	1.62%	1.61%
Advances due over 12 months through 24 months (percent)	0.97%	1.62%
Advances due over 24 months through 36 months (percent)	0.40%	0.97%
Outstanding advances (percent)	1.05%	1.40%

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Borrowings and Subordinated Debentures - Summary of Financial Data Pertaining to Federal Home Loan Bank Advances (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Federal Home Loan Banks [Abstract]
Weighted-average interest rate at end of period	1.05%	1.40%
Weighted-average interest rate during the period	1.20%	1.42%
Average balance of FHLB advances	$ 147,897,000	$ 156,601,000
Maximum amount outstanding at any month-end	$ 150,000,000	$ 300,000,000

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Earnings per Share - Reconciliation of Components Used to Derive Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net income	$ 26,565	$ 16,344	$ 65,346	$ 27,870
Less: income allocated to unvested restricted stock	138	98	948	346
Income allocated to common shares	$ 26,427	$ 16,246	$ 64,398	$ 27,524
Weighted-average shares for basic EPS	30,474,391	30,464,263	30,222,978	30,276,462
Basic EPS	$ 0.87	$ 0.53	$ 2.13	$ 0.91
Effect of dilutive stock options and unvested performance restricted stock	77,805		75,575
Income allocated to common shares	$ 26,427	$ 16,246	$ 64,398	$ 27,524
Weighted-average shares for diluted EPS	30,552,196	30,464,263	30,298,553	30,276,462
Diluted EPS	$ 0.86	$ 0.53	$ 2.13	$ 0.91

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Earnings per Share - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021
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	0		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	66,563
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)	Sep. 30, 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)	6.18%	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)	7.17%	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	Sep. 30, 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	$ 890,412	$ 743,091
Actual Capital, Tier 1 capital to risk-weighted assets	631,277	583,076
Actual Capital, Common equity Tier 1 capital to risk-weighted assets	610,548	562,647
Actual Capital, Tier 1 capital to average assets	$ 631,277	$ 583,076
Actual Capital Ratio, Total capital to risk-weighted assets	17.18	15.21
Actual Capital Ratio, Tier 1 capital to risk-weighted assets	12.18	11.93
Actual Capital Ratio, Common equity Tier 1 capital to risk-weighted assets	11.78	11.52
Actual Capital Ratio, Tier 1 capital to average assets	9.50	9.49
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets	$ 414,662	$ 390,884
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets	310,997	293,163
Minimum Regulatory Requirement Capital, Common equity Tier 1 capital to risk-weighted assets	233,248	219,872
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets	$ 265,683	$ 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	$ 786,150	$ 726,532
Actual Capital, Tier 1 capital to risk-weighted assets	721,131	665,058
Actual Capital, Common equity Tier 1 capital to risk-weighted assets	721,131	665,058
Actual Capital, Tier 1 capital to average assets	$ 721,131	$ 665,059
Actual Capital Ratio, Total capital to risk-weighted assets	15.17	14.86
Actual Capital Ratio, Tier 1 capital to risk-weighted assets	13.91	13.60
Actual Capital Ratio, Common equity Tier 1 capital to risk-weighted assets	13.91	13.60
Actual Capital Ratio, Tier 1 capital to average assets	10.86	10.83
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets	$ 414,653	$ 391,114
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets	310,990	293,336
Minimum Regulatory Requirement Capital, Common equity Tier 1 capital to risk-weighted assets	233,242	220,002
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets	$ 265,650	$ 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	$ 518,317	$ 488,893
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to risk-weighted assets	414,653	391,114
Minimum to Be Categorized as Well Capitalized Capital, Common equity Tier 1 capital to risk-weighted average	336,906	317,780
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to average assets	$ 332,063	$ 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)	Sep. 30, 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

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 906,996,000	$ 753,781,000
Derivative financial instruments, Assets	800,000	1,100,000
Derivative financial instruments, Liabilities	769,000	1,100,000
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	4,945,000	10,132,000
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	636,062,000	519,241,000
Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	99,883,000	133,601,000
Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	98,436,000	90,807,000
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	834,381,000	743,649,000
Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	67,670,000
Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	906,996,000	753,781,000
Recurring Basis | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	4,945,000	10,132,000
Recurring Basis | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	636,062,000	519,241,000
Recurring Basis | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	99,883,000	133,601,000
Recurring Basis | Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	98,436,000	90,807,000
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	834,381,000	743,649,000
Recurring Basis | Derivative financial instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments, Assets	800,000	1,088,000
Derivative financial instruments, Liabilities	769,000	1,149,000
Recurring Basis | Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	67,670,000
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	4,945,000	10,132,000
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	4,945,000	10,132,000
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 | Quoted Prices in Active Markets for Identical Assets | Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0
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	902,051,000	743,649,000
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	636,062,000	519,241,000
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	99,883,000	133,601,000
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	98,436,000	90,807,000
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	834,381,000	743,649,000
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	800,000	1,088,000
Derivative financial instruments, Liabilities	769,000	1,149,000
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	67,670,000
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
Recurring Basis | Significant Unobservable Inputs | Municipal bonds-tax exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 0

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) - Non-recurring Basis - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	$ 12,325	$ 63,114
Other real estate owned	675	2,360
Repossessed personal property	180	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	12,325	63,114
Other real estate owned	675	2,360
Repossessed personal property	$ 180	$ 857

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Parenthetical) (Detail) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable	$ 4,782,252,000	$ 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	$ 12,300,000	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 Assumptions for Assets Measured at Fair Value on Non-Recurring Basis (Detail) - Significant Unobservable Inputs - Non-recurring Basis $ in Thousands	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 12,325	$ 63,114
Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	12,325	63,073
Retail | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 2,628	$ 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	(0.028)	(0.045)
Retail | Maximum [Member] | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.023	0.035
Retail | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.006)	0.014
Other | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 128	$ 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	(0.010)	(0.055)
Other | Maximum [Member] | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	0.005	0.034
Other | Weighted Average | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.003)	0.015
Hospitality | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value		$ 20,612
Alternative Investment, Valuation Technique [Extensible List]		us-gaap:MarketApproachValuationTechniqueMember
Construction | Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 7,046	$ 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	$ 2,523	$ 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	0.008	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	$ 180	$ 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	$ 675	$ 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	(0.020)	(0.035)
Other Real Estate Owned | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.005)	0.015
Other Real Estate Owned | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	(0.012)	(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

XML

Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financial assets:
Cash and due from banks	$ 824,347	$ 391,849
Securities available for sale	906,996	753,781
Loans held for sale	17,881	8,568
Loans receivable, net of allowance for credit losses	4,782,252	4,789,742
Accrued interest receivable	11,943	16,363
Financial liabilities:
Noninterest-bearing deposits	2,548,591	1,898,766
Interest-bearing deposits	3,180,945	3,376,242
Borrowings and subordinated debentures	352,344	268,972
Accrued interest payable	1,235	4,564
Quoted Prices in Active Markets for Identical Assets | Fair Value
Financial assets:
Cash and due from banks	824,347	391,849
Securities available for sale	4,945	10,132
Loans held for sale	0	0
Loans receivable, net of allowance for credit losses	0	0
Accrued interest receivable	11,943	16,363
Financial liabilities:
Noninterest-bearing deposits	0	0
Interest-bearing deposits	0	0
Borrowings and subordinated debentures	0	0
Accrued interest payable	1,235	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	902,051	743,649
Loans held for sale	19,937	9,270
Loans receivable, net of allowance for credit losses	0	0
Accrued interest receivable	0	0
Financial liabilities:
Noninterest-bearing deposits	2,548,591	1,898,766
Interest-bearing deposits	0	0
Borrowings and subordinated debentures	137,991	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	4,774,003	4,755,302
Accrued interest receivable	0	0
Financial liabilities:
Noninterest-bearing deposits	0	0
Interest-bearing deposits	3,180,790	3,380,179
Borrowings and subordinated debentures	211,880	118,809
Accrued interest payable	$ 0	$ 0

XML

Off-Balance Sheet Commitments - Distribution of Undisbursed Loan Commitments (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
Total undisbursed loan commitments	$ 645,389	$ 555,616
Commitments to extend credit
Loss Contingencies [Line Items]
Total undisbursed loan commitments	536,149	453,900
Standby letters of credit
Loss Contingencies [Line Items]
Total undisbursed loan commitments	49,006	47,169
Commercial letters of credit
Loss Contingencies [Line Items]
Total undisbursed loan commitments	$ 60,234	$ 54,547

XML

Off-Balance Sheet Commitments - Allowance for Credit Losses Related to Off-Balance Sheet Items (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Loss Contingencies [Line Items]
Balance at beginning of period	$ 3,643	$ 6,347	$ 2,792	$ 2,397
Adjusted balance	3,643	6,347	2,792	2,062
Provision expense (recovery) for credit losses	1,208	(658)	2,059	3,627
Balance at end of period	$ 4,851	$ 5,689	$ 4,851	5,689
ASU 2016-13
Loss Contingencies [Line Items]
Adjustment related to adoption of ASU 2016-13				$ (335)

XML

Leases - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Right-of-use assets	$ 48,200		$ 48,200		$ 52,200
Total lease liabilities - Operating leases	$ 51,670		$ 51,670		$ 54,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued expenses and other liabilities		Accrued expenses and other liabilities		Accrued expenses and other liabilities
Weighted average remaining lease term	8 years 3 days		8 years 3 days		8 years 9 months
Weighted average discount rate (percent)	2.38%		2.38%		2.43%
Net lease expense	$ 2,300	$ 2,000	$ 6,300	$ 6,100
Operating lease costs	2,000	2,000	6,100	6,100
Cash paid for amounts included in the measurement of Company's operating lease liabilities	$ 1,900	$ 1,700	$ 6,000	$ 5,600
Minimum
Lessee, Lease, Description [Line Items]
Operating lease remaining term	1 year		1 year
Finance lease remaining term	1 year		1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Operating lease remaining term	13 years		13 years
Finance lease remaining term	13 years		13 years
Operating lease extension term	5 years		5 years
Finance lease extension term	5 years		5 years

XML

Leases - Future Minimum Rental Commitments Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
2021	$ 7,986
2022	7,833
2023	7,201
2024	6,816
2025	5,706
Thereafter	21,413
Remaining lease commitments	56,955
Interest	(5,285)
Present value of lease liability	$ 51,670	$ 54,000

XML

Liquidity - Additional Information (Detail) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Total borrowing capacity based on pledged collateral	$ 1,610,000,000	$ 1,440,000,000
Amount available from borrowing source	24,600,000	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	94,500,000	17,300,000
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	137,500,000	150,000,000.0
Broker deposits	$ 144,500,000	193,700,000
Percentage of borrowings from FHLB (up to)	30.00%
Total borrowing capacity based on pledged collateral	$ 1,610,000,000	1,730,000,000
Borrowing capacity available based on pledged collateral	1,370,000,000	$ 1,440,000,000
Amount available from borrowing source	24,600,000
Carrying value for loans pledged by Bank	25,800,000
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 ($)	Sep. 30, 2021	Dec. 31, 2020
Derivatives Fair Value [Line Items]
Total derivative assets	$ 800,000	$ 1,088,000
Total derivative liabilities	769,000	1,149,000
Not Designated as Hedging Instrument | Interest Rate Products
Derivatives Fair Value [Line Items]
Notional Amount	66,466,000	66,904,000
Total derivative assets	800,000	1,088,000
Total derivative liabilities	$ 769,000	$ 1,149,000

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Derivatives and Hedging Activities - Effect of Derivative Financial Instruments that are Not Designated as Hedging Instruments on Income Statement (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments Gain Loss [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 7	$ (77)	$ 92	$ 21
Interest Rate Products | Other Income
Derivative Instruments Gain Loss [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 7	$ (77)	$ 92	$ 21

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Derivatives and Hedging Activities - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Derivative [Line Items]
Fair value of derivatives in net asset position	$ 800,000		$ 800,000		$ 1,100,000
Amount of collateral posted	700,000		700,000		1,200,000
Net asset and liability position	31,000		31,000		(61,000)
Derivative fair value of liabilities	769,000		769,000		1,100,000
Derivative fair value of assets	800,000		800,000		1,100,000
Termination value	0		0		$ 1,100,000
Other Income
Derivative [Line Items]
Fee income	$ 0	$ 0	$ 0	$ 512,000

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Derivatives and Hedging Activities - Summary of Gross Presentation, Effects of Offsetting and a Net Presentation of Derivatives (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Derivatives Fair Value [Line Items]
Gross Amounts of Recognized Assets, Offsetting of Derivative Assets	$ 800	$ 1,088
Net Amounts of Assets presented in the Consolidated Balance Sheets, Offsetting of Derivative Assets	800	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	769	1,149
Net Amounts of Liabilities presented in the Consolidated Balance Sheets, Offsetting of Derivative Liabilities	769	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	769
Derivative Assets, Financial Instruments
Derivatives Fair Value [Line Items]
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets, Net Amount	769	$ 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	$ 31