UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


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

For the Quarterly Period Ended March 31, 2025

or


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

For the Transition Period From To

Commission File Number: 000-30421

HANMI FINANCIAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)


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


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

(213) 382-2200

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

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

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

     Title of each class

     Trading
Symbol(s)

     Name of each exchange on which registered

     Common Stock, $0.001 par value

     HAFC

     Nasdaq Global Select Market

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

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

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


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

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

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

As of April 30, 2025, there were 30,212,095 outstanding shares of the Registrant’s Common Stock.

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

Three Months Ended March 31, 2025

Table of Contents


	Part I – Financial Information

Item 1.	Financial Statements	3

	Consolidated Balance Sheets at March 31, 2025 (unaudited) and December 31, 2024	3

	Consolidated Statements of Income for the three months ended March 31, 2025 and 2024 (unaudited)	4

	Consolidated Statements of Comprehensive Income for the three months ended March 31, 2025 and 2024 (unaudited)	5

	Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2025 and 2024 (unaudited)	6

	Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)	7

	Notes to Consolidated Financial Statements (unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	60

Item 4.	Controls and Procedures	60

	Part II – Other Information

Item 1.	Legal Proceedings	61

Item 1A.	Risk Factors	61

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	61

Item 3.	Defaults Upon Senior Securities	61

Item 4.	Mine Safety Disclosures	61

Item 5.	Other Information	61

Item 6.	Exhibits	62

Signatures		63

Part I — Financial Information

Item 1. Financial Statements

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)


	March 31,			December 31,
	2025			2024
	(Unaudited)
Assets
Cash and due from banks	$	329,003		$	304,800
Securities available for sale, at fair value (amortized cost of $991,234 and $1,004,563 as of March 31, 2025 and December 31, 2024, respectively)		907,011			905,798
Loans held for sale, at the lower of cost or fair value		11,831			8,579
Loans receivable, net of allowance for credit losses of $70,597 and $70,147 as of March 31, 2025 and December 31, 2024, respectively		6,211,592			6,181,230
Accrued interest receivable		23,536			22,937
Premises and equipment, net		20,866			21,404
Customers' liability on acceptances		552			1,226
Servicing assets		6,422			6,457
Goodwill and other intangible assets, net		11,031			11,031
Federal Home Loan Bank ("FHLB") stock, at cost		16,385			16,385
Income tax assets		38,058			44,901
Bank-owned life insurance		57,476			57,168
Prepaid expenses and other assets		95,272			96,009
Total assets	$	7,729,035		$	7,677,925

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,066,659		$	2,096,634
Interest-bearing		4,552,816			4,339,142
Total deposits		6,619,475			6,435,776
Accrued interest payable		29,646			34,824
Bank's liability on acceptances		552			1,226
Borrowings		117,500			262,500
Subordinated debentures		130,799			130,638
Accrued expenses and other liabilities		79,578			80,787
Total liabilities		6,977,550			6,945,751
Stockholders’ equity:
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of March 31, 2025 and December 31, 2024		—			—
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 34,265,030 shares (30,233,514 shares outstanding) and 34,151,464 shares (30,195,999 shares outstanding) as of March 31, 2025 and December 31, 2024, respectively		34			34
Additional paid-in capital		591,942			591,069
Accumulated other comprehensive loss, net of tax benefit of $24,320 and $28,576 as of March 31, 2025 and December 31, 2024, respectively		(60,002	)		(70,723	)
Retained earnings		360,289			350,869
Less treasury stock; 4,031,516 shares and 3,955,465 shares as of March 31, 2025 and December 31, 2024, respectively		(140,778	)		(139,075	)
Total stockholders’ equity		751,485			732,174
Total liabilities and stockholders’ equity	$	7,729,035		$	7,677,925

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(in thousands, except share and per share data)


	Three Months Ended
	March 31,
	2025		2024
Interest and dividend income:
Interest and fees on loans receivable	$	90,887	$	91,674
Interest on securities		6,169		4,955
Dividends on FHLB stock		360		361
Interest on deposits in other banks		1,841		2,604
Total interest and dividend income		99,257		99,594
Interest expense:
Interest on deposits		40,559		45,638
Interest on borrowings		2,024		1,655
Interest on subordinated debentures		1,582		1,646
Total interest expense		44,165		48,939
Net interest income before credit loss expense		55,092		50,655
Credit loss expense		2,721		227
Net interest income after credit loss expense		52,371		50,428
Noninterest income:
Service charges on deposit accounts		2,217		2,450
Trade finance and other service charges and fees		1,396		1,414
Gain on sale of Small Business Administration ("SBA") loans		2,000		1,482
Gain on sale of mortgage loans		175		—
Other operating income		1,938		2,387
Total noninterest income		7,726		7,733
Noninterest expense:
Salaries and employee benefits		20,972		21,585
Occupancy and equipment		4,450		4,537
Data processing		3,787		3,551
Professional fees		1,468		1,893
Supplies and communications		517		601
Advertising and promotion		585		907
Other operating expenses		3,205		3,371
Total noninterest expense		34,984		36,445
Income before tax		25,113		21,716
Income tax expense		7,441		6,552
Net income	$	17,672	$	15,164
Basic earnings per share	$	0.59	$	0.50
Diluted earnings per share	$	0.58	$	0.50
Weighted-average shares outstanding:
Basic		29,937,660		30,119,646
Diluted		30,058,248		30,119,646

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)


	Three Months Ended
	March 31,
	2025			2024

Net income	$	17,672		$	15,164
Other comprehensive income (loss), net of tax:
Unrealized gain (loss):
Unrealized holding gain (loss) on available for sale securities		14,542			(5,098	)
Unrealized gain (loss) on cash flow hedges		190			(2,207	)
Unrealized gain (loss)		14,732			(7,305	)
Income tax benefit (expense) related to other comprehensive income items		(4,183	)		2,343
Other comprehensive income (loss)		10,549			(4,962	)

Reclassification adjustment for losses included in net income		245			—
Income tax benefit related to reclassification adjustment		(73	)		—
Reclassification adjustment for losses included in net income, net of tax		172			—
Other comprehensive income (loss), net of tax		10,721			(4,962	)
Total comprehensive income	$	28,393		$	10,202

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three Months Ended March 31, 2025 and 2024

(in thousands, except share data)


	Common Stock - Number of Shares								Stockholders' Equity
													Accumulated
											Additional		Other						Treasury			Total
	Shares		Treasury			Shares			Common		Paid-in		Comprehensive			Retained			Stock,			Stockholders'
	Issued		Shares			Outstanding			Stock		Capital		Loss			Earnings			at Cost			Equity
Balance at January 1, 2024		33,918,035		(3,549,380	)		30,368,655		$	34	$	586,912	$	(71,928	)	$	319,048		$	(132,175	)	$	701,891
Issuance of awards pursuant to equity incentive plans, net of forfeitures		39,249		—			39,249			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		775		—			—			—			775
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(31,546	)		(31,546	)		—		—		—			—			(490	)		(490	)
Repurchase of common stock		—		(100,000	)		(100,000	)		—		—		—			—			(1,592	)		(1,592	)
Cash dividends paid (common stock, $0.25/share)		—		—			—			—		—		—			(7,686	)		—			(7,686	)
Net income		—		—			—			—		—		—			15,164			—			15,164
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		(3,394	)		—			—			(3,394	)
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—		—			—			—		—		(1,568	)		—			—			(1,568	)
Balance at March 31, 2024		33,957,284		(3,680,926	)		30,276,358		$	34	$	587,687	$	(76,890	)	$	326,526		$	(134,257	)	$	703,100

Balance at January 1, 2025		34,151,464		(3,955,465	)		30,195,999		$	34	$	591,069	$	(70,723	)	$	350,869		$	(139,075	)	$	732,174
Issuance of awards pursuant to equity incentive plans, net of forfeitures		113,566		—			113,566			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		873		—			—			—			873
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(26,051	)		(26,051	)		—		—		—			—			(579	)		(579	)
Repurchase of common stock		—		(50,000	)		(50,000	)		—		—		—			—			(1,124	)		(1,124	)
Cash dividends paid (common stock, $0.27/share)		—		—			—			—		—		—			(8,252	)		—			(8,252	)
Net income		—		—			—			—		—		—			17,672			—			17,672
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		10,411			—			—			10,411
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—		—			—			—		—		310			—			—			310
Balance at March 31, 2025		34,265,030		(4,031,516	)		30,233,514		$	34	$	591,942	$	(60,002	)	$	360,289		$	(140,778	)	$	751,485

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)


	Three Months Ended March 31,
	2025			2024
Cash flows from operating activities:
Net income	$	17,672		$	15,164
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,592			1,604
Amortization of servicing assets - net		692			694
Share-based compensation expense		873			775
Credit loss expense		2,721			227
(Gain) loss on sales of SBA loans		(2,000	)		(1,482	)
Origination of SBA loans held for sale		(35,420	)		(17,632	)
Proceeds from sales of loans		43,837			26,555
(Gain) loss on sales of residential loans		(175	)		(443	)
Change in bank-owned life insurance		(308	)		(304	)
Change in prepaid expenses and other assets		1,160			5,564
Change in income tax assets		2,660			1,707
Change in accrued interest payable and other liabilities		(7,460	)		(2,446	)
Net cash provided by operating activities		25,844			29,983
Cash flows from investing activities:
Purchases of securities available for sale		(32,466	)		(38,424	)
Proceeds from matured, called and repayment of securities		45,141			26,233
Purchases of loans receivable		(34,301	)		(10,198	)
Proceeds from sales of mortgage loans		—			30,427
Purchases of premises and equipment		(263	)		(794	)
Proceeds from disposition of premises and equipment		14			—
Change in loans receivable, excluding purchases and sales		(8,608	)		(16,729	)
Net cash used in investing activities		(30,483	)		(9,485	)
Cash flows from financing activities:
Change in deposits		183,699			95,486
Change in open FHLB advances		(145,000	)		(152,500	)
Cash paid for employee vested shares surrendered due to employee tax liability		(579	)		(490	)
Repurchase of common stock		(1,125	)		(1,594	)
Cash dividends paid		(8,153	)		(7,686	)
Net cash provided by (used in) financing activities		28,842			(66,784	)
Net increase (decrease) in cash and due from banks		24,203			(46,286	)
Cash and due from banks at beginning of year		304,800			302,324
Cash and due from banks at end of period	$	329,003		$	256,038
Supplemental disclosures of cash flow information:
Interest paid	$	49,343		$	50,238
Income taxes paid	$	550		$	175
Non-cash activities:
Income tax benefit (expense) related to other comprehensive income items	$	(4,256	)	$	2,343
Change in right-of-use asset obtained in exchange for lease liability	$	(4,442	)	$	(1,873	)

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1 — Organization and Basis of Presentation

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

In management’s opinion, the accompanying unaudited consolidated financial statements of Hanmi Financial and its subsidiaries reflect all adjustments of a normal and recurring nature that are necessary for a fair presentation of the results for the interim period ended March 31, 2025. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. The unaudited consolidated financial statements are prepared in conformity with GAAP and in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. Operating results for the three-month periods ended March 31, 2025 are not necessarily indicative of the results that may be expected for the year ended December 31, 2025 or for any other period. The interim information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 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.

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 2024 Annual Report on Form 10-K.

Effective January 1, 2025, the Company changed its methodology for estimating expected credit losses on its loan portfolio in accordance with Accounting Standards Update ("ASU") 2016-23, Financial Instruments – Credit Losses. Previously, the Company primarily used a Probability of Default / Loss Given Default (PD/LGD) model to determine the allowance for credit losses. Following a periodic review of its credit loss estimation process, the Company concluded that a historical loss rate approach, adjusted for current conditions and reasonable and supportable forecasts, more appropriately reflects the expected credit losses for its loan portfolio. This change is considered a change in accounting estimate resulting from a change in methodology and assumptions, and is accounted for prospectively in accordance with ASC 250-10-45-17 through 45-18.

The change in methodology had an immaterial impact to the Company’s operating results and financial condition. The provision for credit losses for the quarter ended March 31, 2025 reflects this change in estimate. Management believes the revised approach enhances the accuracy and relevance of its allowance for credit losses by aligning the methodology more closely with the Company’s historical experience, the nature of its loan portfolio, and expectations for future economic conditions.

Accounting Standards Adopted in 2025

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

Recently Issued Accounting Standards Not Yet Effective

ASU 2024-03, Income Statement Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), as amended by ASU 2025-01, Clarifying the Effective Date: In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03 to require additional information about specific expense categories in the financial statement notes at interim and annual reporting periods. The amendments in this ASU do not change or remove current expense disclosure requirements. The amendments affect where the information appears in the financial statement notes. ASU 2025-01 amends the changes in ASU 2024-03 to be effective for fiscal years beginning after December 15, 2026. The adoption of ASU 2024-03 is not expected to have a material effect on the Company’s operating results or financial condition.

Note 2 — Securities

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


			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
	(in thousands)
March 31, 2025
U.S. Treasury securities	$	89,726	$	281	$	(376	)	$	89,631
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		439,368		471		(52,001	)		387,838
Mortgage-backed securities - commercial		74,491		92		(12,031	)		62,552
Collateralized mortgage obligations		195,041		1,271		(7,783	)		188,529
Debt securities		116,783		12		(2,891	)		113,904
Total U.S. government agency and sponsored agency obligations		825,683		1,846		(74,706	)		752,823
Municipal bonds-tax exempt		75,825		—		(11,268	)		64,557
Total securities available for sale	$	991,234	$	2,127	$	(86,350	)	$	907,011

December 31, 2024
U.S. Treasury securities	$	89,208	$	242	$	(521	)	$	88,929
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		453,993		222		(61,643	)		392,572
Mortgage-backed securities - commercial		75,947		24		(13,055	)		62,916
Collateralized mortgage obligations		182,553		404		(9,401	)		173,556
Debt securities		126,776		9		(3,969	)		122,816
Total U.S. government agency and sponsored agency obligations		839,269		659		(88,068	)		751,860
Municipal bonds-tax exempt		76,086		—		(11,077	)		65,009
Total securities available for sale	$	1,004,563	$	901	$	(99,666	)	$	905,798

The amortized cost and estimated fair value of securities as of March 31, 2025 and December 31, 2024, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities.


	March 31, 2025				December 31, 2024
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	95,434	$	94,924	$	93,251	$	92,646
Over one year through five years		125,499		122,995		133,408		129,556
Over five years through ten years		87,294		77,660		90,772		81,833
Over ten years		683,007		611,432		687,132		601,763
Total	$	991,234	$	907,011	$	1,004,563	$	905,798

The following table summarizes debt securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2025 or December 31, 2024, aggregated by major security type and length of time in a continuous unrealized loss position:


	Holding Period
	Less than 12 Months							12 Months or More							Total
	Gross			Estimated		Number		Gross			Estimated		Number		Gross			Estimated		Number
	Unrealized			Fair		of		Unrealized			Fair		of		Unrealized			Fair		of
	Loss			Value		Securities		Loss			Value		Securities		Loss			Value		Securities
	(in thousands, except number of securities)
March 31, 2025
U.S. Treasury securities	$	(17	)	$	8,063		3	$	(359	)	$	9,876		3	$	(376	)	$	17,939		6
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(102	)		8,788		5		(51,899	)		348,252		114		(52,001	)		357,040		119
Mortgage-backed securities - commercial		(246	)		14,745		4		(11,785	)		41,463		14		(12,031	)		56,208		18
Collateralized mortgage obligations		(34	)		20,494		5		(7,749	)		52,260		23		(7,783	)		72,754		28
Debt securities		—			—		—		(2,891	)		98,658		19		(2,891	)		98,658		19
Total U.S. government agency and sponsored agency obligations		(382	)		44,027		14		(74,324	)		540,633		170		(74,706	)		584,660		184
Municipal bonds-tax exempt		—			—		—		(11,268	)		64,558		19		(11,268	)		64,558		19
Total	$	(399	)	$	52,090		17	$	(85,951	)	$	615,067		192	$	(86,350	)	$	667,157		209

December 31, 2024
U.S. Treasury securities	$	(61	)	$	13,603		6	$	(460	)	$	9,771		3	$	(521	)	$	23,374		9
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(271	)		23,276		10		(61,372	)		351,793		114		(61,643	)		375,069		124
Mortgage-backed securities - commercial		(447	)		19,092		5		(12,608	)		41,817		14		(13,055	)		60,909		19
Collateralized mortgage obligations		(645	)		76,963		18		(8,756	)		54,020		24		(9,401	)		130,983		42
Debt securities		(23	)		11,712		3		(3,946	)		107,595		21		(3,969	)		119,307		24
Total U.S. government agency and sponsored agency obligations		(1,386	)		131,043		36		(86,682	)		555,225		173		(88,068	)		686,268		209
Municipal bonds-tax exempt		—			—		—		(11,077	)		65,009		19		(11,077	)		65,009		19
Total	$	(1,447	)	$	144,646		42	$	(98,219	)	$	630,005		195	$	(99,666	)	$	774,651		237

The Company evaluates its available for sale securities portfolio for impairment on a quarterly basis. The Company did not recognize unrealized losses in income because it has the ability and the intent to hold and does not expect to be required to sell these securities until the recovery of their cost basis. The quarterly impairment assessment considers 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. If a credit loss is expected to occur, an allowance is established and a corresponding credit loss is recognized. Based on its analysis, as of March 31, 2025, the Company determined that no credit losses were expected to be realized on the tax-exempt municipal bond portfolio. The remainder of the portfolio consists of U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government, and are therefore not expected to incur credit losses.

There were no sales of securities during the three months ended March 31, 2025 and March 31, 2024.

Securities available for sale with market values of $28.9 million and $29.4 million as of March 31, 2025 and December 31, 2024, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.

At March 31, 2025, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity.

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:


	March 31, 2025			December 31, 2024
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,109,097		$	1,068,978
Hospitality		845,275			848,134
Office		563,957			568,861
Other (1)		1,378,746			1,385,051
Total commercial property loans		3,897,075			3,871,024
Construction		78,576			78,598
Residential (2)		979,536			951,302
Total real estate loans		4,955,187			4,900,924
Commercial and industrial loans		854,406			863,431
Equipment financing agreements		472,596			487,022
Loans receivable		6,282,189			6,251,377
Allowance for credit losses		(70,597	)		(70,147	)
Loans receivable, net	$	6,211,592		$	6,181,230

(1)

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

(2)

Includes $1.2 million and $1.3 million of home equity loans and lines, and $6.2 million and $4.1 million of personal loans at March 31, 2025 and December 31, 2024, respectively.

Accrued interest on loans was $20.3 million and $19.1 million at March 31, 2025 and December 31, 2024, respectively.

At March 31, 2025 and December 31, 2024, loans with carrying values of $2.44 billion and $2.46 billion, respectively, were pledged to secure advances from the FHLB.

Loans Held for Sale

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


	Real Estate			Commercial and Industrial			Total
	(in thousands)
Three months ended March 31, 2025
Balance at beginning of period	$	3,994		$	4,585		$	8,579
Originations and transfers		18,615			16,805			35,420
Sales		(17,594	)		(14,570	)		(32,164	)
Principal paydowns and amortization		—			(4	)		(4	)
Balance at end of period	$	5,015		$	6,816		$	11,831

Three months ended March 31, 2024
Balance at beginning of period	$	8,792		$	3,221		$	12,013
Originations and transfers		9,614			8,018			17,632
Sales		(16,900	)		(8,687	)		(25,587	)
Principal paydowns and amortization		(52	)		(7	)		(59	)
Balance at end of period	$	1,454		$	2,545		$	3,999

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


	Three Months Ended
	March 31,
	2025		2024
	(in thousands)
Commercial real estate	$	15,113	$	274
Commercial and industrial		9,203		9,924
Residential real estate		9,985		—
Total	$	34,301	$	10,198

Allowance for Credit Losses

Effective January 1, 2025, we transitioned to a new allowance for credit losses (“ACL”) model to perform our ACL analysis. Part of the transition to the new model, in addition to the factors previously mentioned, includes a change in our methodology on commercial and industrial, commercial real estate, and residential loans. The change in models did not result in a material change in our ACL as of January 1, 2025. The table below includes in credit loss expense for the three months ended March 31, 2025 the effect of the ACL model change of $1.4 million.

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


	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
Three months ended March 31, 2025
Balance at beginning of period	$	45,099		$	10,006		$	15,042		$	70,147
Charge-offs		(169	)		(222	)		(2,798	)		(3,189	)
Recoveries		424			36			783			1,243
Credit loss expense (recovery)		5,948			(3,578	)		26			2,396
Ending balance	$	51,302		$	6,242		$	13,053		$	70,597

Three months ended March 31, 2024
Balance at beginning of period	$	45,499		$	10,257		$	13,706		$	69,462
Charge-offs		—			(155	)		(1,968	)		(2,123	)
Recoveries		46			58			423			527
Credit loss expense (recovery)		(2,961	)		1,676			1,689			404
Ending balance	$	42,584		$	11,836		$	13,850		$	68,270

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


	March 31, 2025										December 31, 2024
	Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans			Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans
	(dollars in thousands)
Real estate loans:
Commercial property
Retail	$	9,404		13.3	%	$	1,109,097		17.7	%	$	10,171		14.5	%	$	1,068,978		17.1	%
Hospitality		7,128		10.1			845,275		13.5			15,302		21.8			848,134		13.6
Office		11,536		16.3			563,957		9.0			3,935		5.6			568,861		9.1
Other		12,278		17.5			1,378,746		21.8			8,243		11.8			1,385,051		22.2
Total commercial property loans		40,346		57.2			3,897,075		62.0			37,651		53.7			3,871,024		62.0
Construction		1,021		1.4			78,576		1.3			1,664		2.4			78,598		1.3
Residential		9,936		14.2			979,536		15.7			5,784		8.2			951,302		15.2
Total real estate loans		51,303		72.8			4,955,187		79.0			45,099		64.3			4,900,924		78.5
Commercial and industrial loans		6,242		8.7			854,406		13.5			10,006		14.3			863,431		13.8
Equipment financing agreements		13,052		18.5			472,596		7.5			15,042		21.4			487,022		7.7
Total	$	70,597		100.0	%	$	6,282,189		100.0	%	$	70,147		100.0	%	$	6,251,377		100.0	%

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


	March 31, 2025		December 31, 2024
	(in thousands)
Real estate loans:
Commercial property
Retail	$	576	$	1,377
Hospitality		2,037		215
Office		20,000		—
Total commercial property loans		22,613		1,592
Residential		2,819		1,875
Total real estate loans		25,432		3,467
Total	$	25,432	$	3,499

Loan Quality Indicators

As part of the on-going monitoring of the quality of our loans portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 1 to 8) for each loan in our portfolio. Third-party loan reviews are conducted annually on a sample basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows:

Pass and Pass-Watch: Pass and Pass-Watch loans, grades (1-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention”, “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.

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

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

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

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

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

Loans by Vintage Year and Risk Rating


	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2025			2024		2023			2022			2021		Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
March 31, 2025
Real estate loans:
Commercial property
Risk Rating									`
Pass / Pass-Watch	$	324,165		$	440,685	$	526,730		$	903,055		$	780,169	$	687,369		$	93,960		$	3,756,133
Special Mention		—			29,820		—			148			—		75,959			—			105,927
Classified		111			361		—			24,914			3,131		6,498			—			35,015
Total commercial property		324,276			470,866		526,730			928,117			783,300		769,826			93,960			3,897,075
YTD gross charge-offs		—			—		—			—			—		169			—			169
YTD net charge-offs (recoveries)		(1	)		—		—			(274	)		—		21			—			(254	)

Construction
Risk Rating
Pass / Pass-Watch		15,014			55,564		7,998			—			—		—			—			78,576
Special Mention		—			—		—			—			—		—			—			—
Classified		—			—		—			—			—		—			—			—
Total construction		15,014			55,564		7,998			—			—		—			—			78,576
YTD gross charge-offs		—			—		—			—			—		—			—			—
YTD net charge-offs (recoveries)		—			—		—			—			—		—			—			—

Residential
Risk Rating
Pass / Pass-Watch		53,928			125,045		185,407			349,962			143,387		113,205			6,583			977,517
Special Mention		—			—		—			—			—		—			251			251
Classified		—			—		—			966			—		802			—			1,768
Total residential		53,928			125,045		185,407			350,928			143,387		114,007			6,834			979,536
YTD gross charge-offs		—			—		—			—			—		—			—			—
YTD net charge-offs (recoveries)		—			—		—			—			—		(1	)		—			(1	)

Total real estate loans
Risk Rating
Pass / Pass-Watch		393,107			621,294		720,135			1,253,017			923,556		800,574			100,542			4,812,225
Special Mention		—			29,820		—			148			—		75,959			252			106,179
Classified		111			361		—			25,880			3,131		7,300			—			36,783
Total real estate loans		393,218			651,475		720,135			1,279,045			926,687		883,833			100,794			4,955,187
YTD gross charge-offs		—			—		—			—			—		169			—			169
YTD net charge-offs (recoveries)		(1	)		—		—			(274	)		—		20			—			(255	)

Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		138,971			211,289		48,519			72,953			31,519		23,118			314,381			840,750
Special Mention		—			—		—			12,201			—		—			—			12,201
Classified		—			131		—			118			82		113			1,011			1,455
Total commercial and industrial loans		138,971			211,420		48,519			85,272			31,601		23,231			315,392			854,406
YTD gross charge-offs		—			—		—			88			—		134			—			222
YTD net charge-offs (recoveries)		—			—		(5	)		80			—		111			—			186

Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		47,857			126,273		128,890			111,146			42,505		7,644			—			464,315
Special Mention		—			—		—			—			—		—			—			—
Classified		—			271		2,155			3,934			1,681		240			—			8,281
Total equipment financing agreements		47,857			126,544		131,045			115,080			44,186		7,884			—			472,596
YTD gross charge-offs		—			220		760			1,234			506		78			—			2,798
YTD net charge-offs (recoveries)		—			220		604			927			275		(9	)		(2	)		2,015

Total loans receivable:
Risk Rating
Pass / Pass-Watch		579,935			958,856		897,544			1,437,116			997,580		831,336			414,923			6,117,290
Special Mention		—			29,820		—			12,349			—		75,959			252			118,380
Classified		111			763		2,155			29,932			4,894		7,653			1,011			46,519
Total loans receivable	$	580,046		$	989,439	$	899,699		$	1,479,397		$	1,002,474	$	914,948		$	416,186		$	6,282,189
YTD gross charge-offs		—			220		760			1,322			506		381			—			3,189
YTD net charge-offs (recoveries)		(1	)		220		599			733			275		122			(2	)		1,946

(1)

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


	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2024		2023			2022		2021			2020			Prior			Revolving Loans Amortized Cost Basis			Total

December 31, 2024
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	533,989	$	558,271		$	930,190	$	800,938		$	553,490		$	271,209		$	101,277		$	3,749,364
Special Mention		29,935		—			1,009		—			—			76,524			—			107,468
Classified		541		—			5,658		3,151			72			4,770			—			14,192
Total commercial property		564,465		558,271			936,857		804,089			553,562			352,503			101,277			3,871,024
YTD gross charge-offs		—		—			274		—			—			136			—			410
YTD net charge-offs (recoveries)		—		—			274		—			(21	)		(704	)		—			(451	)

Construction
Risk Rating
Pass / Pass-Watch		70,601		7,997			—		—			—			—			—			78,598
Special Mention		—		—			—		—			—			—			—			—
Classified		—		—			—		—			—			—			—			—
Total construction		70,601		7,997			—		—			—			—			—			78,598
YTD gross charge-offs		—		—			—		—			1,133			—			—			1,133
YTD net charge-offs (recoveries)		—		—			—		—			1,132			(1,358	)		—			(226	)

Residential
Risk Rating
Pass / Pass-Watch		127,986		200,316			355,134		145,310			11,164			105,406			4,436			949,752
Special Mention		—		—			—		—			—			—			251			251
Classified		—		—			983		—			316			—			—			1,299
Total residential		127,986		200,316			356,117		145,310			11,480			105,406			4,687			951,302
YTD gross charge-offs		—		—			—		—			—			—			—			—
YTD net charge-offs (recoveries)		—		—			—		—			—			(3	)		—			(3	)

Total real estate loans
Risk Rating
Pass / Pass-Watch		732,576		766,584			1,285,324		946,248			564,654			376,615			105,713			4,777,714
Special Mention		29,935		—			1,009		—			—			76,524			251			107,719
Classified		541		—			6,641		3,151			388			4,770			—			15,491
Total real estate loans		763,052		766,584			1,292,974		949,399			565,042			457,909			105,964			4,900,924
YTD gross charge-offs		—		—			274		—			1,133			136			—			1,543
YTD net charge-offs (recoveries)		—		—			274		—			1,111			(2,065	)		—			(680	)

Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		271,655		59,453			94,385		32,226			12,761			13,360			346,001			829,841
Special Mention		19,473		—			12,401		—			—			20			—			31,894
Classified		—		(5	)		196		102			—			215			1,188			1,696
Total commercial and industrial loans		291,128		59,448			106,982		32,328			12,761			13,595			347,189			863,431
YTD gross charge-offs		19		169			168		—			11			207			2			576
YTD net charge-offs (recoveries)		19		169			160		(13	)		11			123			(3,375	)		(2,906	)

Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		140,143		144,617			129,764		52,354			8,085			3,563			—			478,526
Special Mention		—		—			—		—			—			—			—			—
Classified		431		1,945			3,851		1,934			129			206			—			8,496
Total equipment financing agreements		140,574		146,562			133,615		54,288			8,214			3,769			—			487,022
YTD gross charge-offs		30		1,456			5,128		2,206			354			325			—			9,499
YTD net charge-offs (recoveries)		30		1,299			4,488		1,826			287			(211	)		—			7,719

Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,144,374		970,654			1,509,473		1,030,828			585,500			393,538			451,714			6,086,081
Special Mention		49,408		—			13,410		—			—			76,544			251			139,613
Classified		972		1,940			10,688		5,187			517			5,191			1,188			25,683
Total loans receivable	$	1,194,754	$	972,594		$	1,533,571	$	1,036,015		$	586,017		$	475,273		$	453,153		$	6,251,377
YTD gross charge-offs		49		1,625			5,570		2,206			1,498			668			2			11,618
YTD net charge-offs (recoveries)		49		1,468			4,922		1,813			1,409			(2,153	)		(3,375	)		4,133

(1)

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

Loans by Vintage Year and Payment Performance


	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2025			2024		2023			2022			2021		Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
March 31, 2025
Real estate loans:
Commercial property
Payment performance
Performing	$	324,276		$	470,866	$	526,730		$	908,008		$	783,300	$	766,701		$	93,960		$	3,873,841
Nonperforming		—			—		—			20,109			—		3,125			—			23,234
Total commercial property		324,276			470,866		526,730			928,117			783,300		769,826			93,960			3,897,075
YTD gross charge-offs		—			—		—			—			—		169			—			169
YTD net charge-offs (recoveries)		(1	)		—		—			(274	)		—		21			—			(254	)

Construction
Payment performance
Performing		15,014			55,564		7,998			—			—		—			—			78,576
Nonperforming		—			—		—			—			—		—			—			—
Total construction		15,014			55,564		7,998			—			—		—			—			78,576
YTD gross charge-offs		—			—		—			—			—		—			—			—
YTD net charge-offs (recoveries)		—			—		—			—			—		—			—			—

Residential
Payment performance
Performing		53,928			125,045		185,407			349,399			143,387		112,721			6,834			976,721
Nonperforming		—			—		—			1,529			—		1,286			—			2,815
Total residential		53,928			125,045		185,407			350,928			143,387		114,007			6,834			979,536
YTD gross charge-offs		—			—		—			—			—		—			—			—
YTD net charge-offs (recoveries)		—			—		—			—			—		(1	)		—			(1	)

Total real estate loans
Payment performance
Performing		393,218			651,475		720,135			1,257,407			926,687		879,422			100,794			4,929,138
Nonperforming		—			—		—			21,638			—		4,411			—			26,049
Total real estate loans		393,218			651,475		720,135			1,279,045			926,687		883,833			100,794			4,955,187
YTD gross charge-offs		—			—		—			—			—		169			—			169
YTD net charge-offs (recoveries)		(1	)		—		—			(274	)		—		20			—			(255	)

Commercial and industrial loans:
Payment performance
Performing		138,971			211,289		48,519			85,154			31,601		23,231			314,381			853,146
Nonperforming		—			131		—			118			—		—			1,011			1,260
Total commercial and industrial loans		138,971			211,420		48,519			85,272			31,601		23,231			315,392			854,406
YTD gross charge-offs		—			—		—			88			—		134			—			222
YTD net charge-offs (recoveries)		—			—		(5	)		80			—		111			—			186

Equipment financing agreements:
Payment performance
Performing		47,857			126,273		128,890			111,166			42,505		7,644			—			464,335
Nonperforming		—			271		2,155			3,914			1,681		240			—			8,261
Total equipment financing agreements		47,857			126,544		131,045			115,080			44,186		7,884			—			472,596
YTD gross charge-offs		—			220		760			1,234			506		78			—			2,798
YTD net charge-offs (recoveries)		—			220		604			927			275		(9	)		(2	)		2,015

Total loans receivable:
Payment performance
Performing		580,046			989,037		897,544			1,453,727			1,000,793		910,297			415,175			6,246,619
Nonperforming		—			402		2,155			25,670			1,681		4,651			1,011			35,570
Total loans receivable	$	580,046		$	989,439	$	899,699		$	1,479,397		$	1,002,474	$	914,948		$	416,186		$	6,282,189
YTD gross charge-offs		—			220		760			1,322			506		381			—			3,189
YTD net charge-offs (recoveries)		(1	)		220		599			733			275		122			(2	)		1,946

(1)

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


	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2024		2023			2022		2021			2020			Prior			Revolving Loans Amortized Cost Basis			Total

December 31, 2024
Real estate loans:
Commercial property
Payment performance
Performing	$	564,465	$	558,271		$	936,140	$	804,089		$	553,562		$	351,042		$	101,277		$	3,868,846
Nonperforming		—		—			717		—			—			1,461			—			2,178
Total commercial property		564,465		558,271			936,857		804,089			553,562			352,503			101,277			3,871,024
YTD gross charge-offs		—		—			274		—			—			136			—			410
YTD net charge-offs (recoveries)		—		—			274		—			(21	)		(704	)		—			(451	)

Construction
Payment performance
Performing		70,601		7,997			—		—			—			—			—			78,598
Nonperforming		—		—			—		—			—			—			—			—
Total construction		70,601		7,997			—		—			—			—			—			78,598
YTD gross charge-offs		—		—			—		—			1,133			—			—			1,133
YTD net charge-offs (recoveries)		—		—			—		—			1,132			(1,358	)		—			(226	)

Residential
Payment performance
Performing		127,986		200,316			354,562		145,310			11,164			105,406			4,687			949,431
Nonperforming		—		—			1,555		—			316			—			—			1,871
Total residential		127,986		200,316			356,117		145,310			11,480			105,406			4,687			951,302
YTD gross charge-offs		—		—			—		—			—			—			—			—
YTD net charge-offs (recoveries)		—		—			—		—			—			(3	)		—			(3	)

Total real estate loans
Payment performance
Performing		763,052		766,584			1,290,702		949,399			564,726			456,448			105,964			4,896,875
Nonperforming		—		—			2,272		—			316			1,461			—			4,049
Total real estate loans		763,052		766,584			1,292,974		949,399			565,042			457,909			105,964			4,900,924
YTD gross charge-offs		—		—			274		—			1,133			136			—			1,543
YTD net charge-offs (recoveries)		—		—			274		—			1,111			(2,065	)		—			(680	)

Commercial and industrial loans:
Payment performance
Performing		291,128		59,453			106,863		32,328			12,761			13,498			346,001			862,032
Nonperforming		—		(5	)		119		—			—			97			1,188			1,399
Total commercial and industrial loans		291,128		59,448			106,982		32,328			12,761			13,595			347,189			863,431
YTD gross charge-offs		19		169			168		—			11			207			2			576
YTD net charge-offs (recoveries)		19		169			160		(13	)		11			123			(3,375	)		(2,906	)

Equipment financing agreements:
Payment performance
Performing		140,143		144,617			129,442		52,354			8,079			3,563			—			478,198
Nonperforming		431		1,945			4,173		1,934			135			206			—			8,824
Total equipment financing agreements		140,574		146,562			133,615		54,288			8,214			3,769			—			487,022
YTD gross charge-offs		30		1,456			5,128		2,206			354			325			—			9,499
YTD net charge-offs (recoveries)		30		1,299			4,488		1,826			287			(211	)		—			7,719

Total loans receivable:
Payment performance
Performing		1,194,323		970,654			1,527,007		1,034,081			585,566			473,509			451,965			6,237,105
Nonperforming		431		1,940			6,564		1,934			451			1,764			1,188			14,272
Total loans receivable	$	1,194,754	$	972,594		$	1,533,571	$	1,036,015		$	586,017		$	475,273		$	453,153		$	6,251,377
YTD gross charge-offs		49		1,625			5,570		2,206			1,498			668			2			11,618
YTD net charge-offs (recoveries)		49		1,468			4,922		1,813			1,409			(2,153	)		(3,375	)		4,133

(1)

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

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


	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
	(in thousands)
March 31, 2025
Real estate loans:
Commercial property
Retail	$	1,647	$	—	$	83	$	1,730	$	1,107,367	$	1,109,097
Hospitality		471		1,821		215		2,507		842,768		845,275
Office		—		20,000		—		20,000		543,957		563,957
Other		657

For the Quarterly Period Ended March 31, 2025

or

For the Transition Period From To

Commission File Number: 000-30421

(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

Not Applicable

Part I — Financial Information

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three Months Ended March 31, 2025 and 2024

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

Hanmi Financial Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Accounting Standards Adopted in 2025

Recently Issued Accounting Standards Not Yet Effective

Note 2 — Securities

Note 3 — Loans

Loans Receivable

Loans Held for Sale