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 June 30, 2026

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 July 30, 2026, there were 29,649,255 outstanding shares of the Registrant’s Common Stock.

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

Three Months Ended June 30, 2026

Table of Contents


	Part I – Financial Information

Item 1.	Financial Statements	3

	Consolidated Balance Sheets at June 30, 2026 (unaudited) and December 31, 2025	3

	Consolidated Statements of Income for the three and six months ended June 30, 2026 and 2025 (unaudited)	4

	Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2026 and 2025 (unaudited)	5

	Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2026 and 2025 (unaudited)	7

	Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025 (unaudited)	8

	Notes to Consolidated Financial Statements (unaudited)	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	44

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64

Item 4.	Controls and Procedures	64

	Part II – Other Information

Item 1.	Legal Proceedings	65

Item 1A.	Risk Factors	65

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	65

Item 3.	Defaults Upon Senior Securities	65

Item 4.	Mine Safety Disclosures	65

Item 5.	Other Information	65

Item 6.	Exhibits	66

Signatures		67

Part I — Financial Information

Item 1. Financial Statements

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)


	June 30,			December 31,
	2026			2025
	(Unaudited)
Assets
Cash and due from banks	$	331,206		$	212,841
Securities available for sale, at fair value (amortized cost of $962,255 and $941,760 as of June 30, 2026 and December 31, 2025, respectively)		896,610			880,624
Loans held for sale, at the lower of cost or fair value		16,969			7,403
Loans, net of allowance for credit losses of $70,475 and $69,903 as of June 30, 2026 and December 31, 2025, respectively		6,464,837			6,493,465
Accrued interest receivable		24,613			24,466
Premises and equipment, net		20,251			20,378
Customers’ liability on acceptances		116			125
Servicing assets		6,419			6,459
Goodwill		11,031			11,031
Federal Home Loan Bank (“FHLB”) stock, at cost		16,385			16,385
Income tax assets		53,555			40,467
Bank-owned life insurance		56,048			56,697
Prepaid expenses and other assets		103,433			98,844
Total assets	$	8,001,473		$	7,869,185

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,135,418		$	2,015,212
Interest-bearing		4,819,924			4,662,438
Total deposits		6,955,342			6,677,650
Accrued interest payable		27,530			34,783
Bank’s liability on acceptances		116			125
Borrowings		—			150,000
Subordinated debentures		130,773			130,463
Accrued expenses and other liabilities		75,032			79,778
Total liabilities		7,188,793			7,072,799
Stockholders’ equity:
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of June 30, 2026 and December 31, 2025		—			—
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 34,445,437 shares (29,650,306 shares outstanding) and 34,287,779 shares (29,894,757 shares outstanding) as of June 30, 2026 and December 31, 2025, respectively		34			34
Additional paid-in capital		596,303			594,667
Accumulated other comprehensive loss, net of tax benefit of $19,093 and $17,822 as of June 30, 2026 and December 31, 2025, respectively		(46,552	)		(43,175	)
Retained earnings		423,499			394,335
Less treasury stock; 4,795,131 shares and 4,393,022 shares as of June 30, 2026 and December 31, 2025, respectively		(160,604	)		(149,475	)
Total stockholders’ equity		812,680			796,386
Total liabilities and stockholders’ equity	$	8,001,473		$	7,869,185

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				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Interest and dividend income:
Interest and fees on loans	$	94,808	$	92,589	$	188,674	$	183,476
Interest on securities		6,337		6,261		12,296		12,430
Dividends on FHLB stock		219		354		1,050		714
Interest on deposits in other banks		1,958		2,129		3,454		3,969
Total interest and dividend income		103,322		101,333		205,474		200,589
Interest expense:
Interest on deposits		37,774		41,924		74,512		82,483
Interest on borrowings		154		684		830		2,708
Interest on subordinated debentures		1,537		1,586		3,072		3,167
Total interest expense		39,465		44,194		78,414		88,358
Net interest income before credit loss expense		63,857		57,139		127,060		112,231
Credit loss expense		1,186		7,631		4,078		10,352
Net interest income after credit loss expense		62,671		49,508		122,982		101,879
Noninterest income:
Service charges on deposit accounts		2,102		2,169		4,229		4,387
Trade finance and other service charges and fees		1,902		1,461		3,403		2,858
Gain on sale of Small Business Administration (“SBA”) loans		1,318		2,160		3,421		4,161
Gain on sale of residential mortgage loans		357		—		842		175
Other operating income		2,669		2,281		4,992		4,215
Total noninterest income		8,348		8,071		16,887		15,796
Noninterest expense:
Salaries and employee benefits		22,784		22,069		44,740		43,041
Occupancy and equipment		4,383		4,344		8,797		8,794
Data processing		4,555		3,727		8,941		7,514
Professional fees		1,997		1,725		4,777		3,194
Supplies and communications		491		515		1,047		1,031
Advertising and promotion		679		798		1,368		1,382
Other operating expenses		4,150		3,169		7,737		6,374
Total noninterest expense		39,039		36,347		77,407		71,330
Income before tax		31,980		21,232		62,462		46,345
Income tax expense		8,475		6,115		16,400		13,556
Net income	$	23,505	$	15,117	$	46,062	$	32,789
Basic earnings per share	$	0.79	$	0.50	$	1.54	$	1.09
Diluted earnings per share	$	0.79	$	0.50	$	1.54	$	1.08
Weighted-average shares outstanding:
Basic		29,514,712		29,948,836		29,593,872		29,943,279
Diluted		29,689,113		30,054,456		29,770,045		30,048,704

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025

Net income	$	23,505		$	15,117		$	46,062		$	32,789
Other comprehensive income (loss), net of tax:
Unrealized gain (loss):
Unrealized holding gain (loss) on available for sale securities		(1,352	)		7,706			(4,509	)		22,248
Unrealized loss on cash flow hedges		—			(235	)		(57	)		(45	)
Unrealized gain (loss)		(1,352	)		7,471			(4,566	)		22,203
Income tax benefit (expense) related to other comprehensive income items		370			(2,155	)		1,249			(6,339	)
Other comprehensive income (loss)		(982	)		5,316			(3,317	)		15,864

Reclassification adjustment for (gains) losses included in net income		(22	)		248			(82	)		493
Income tax benefit (expense) related to reclassification adjustment		5			(73	)		22			(145	)
Reclassification adjustment for (gains) losses included in net income, net of tax		(17	)		175			(60	)		348
Other comprehensive income (loss), net of tax		(999	)		5,491			(3,377	)		16,212
Total comprehensive income	$	22,506		$	20,608		$	42,685		$	49,001

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 June 30, 2026 and 2025

(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 April 1, 2026		34,426,691		(4,619,997	)		29,806,694		$	34	$	595,374	$	(45,553	)	$	408,327		$	(155,363	)	$	802,819
Net income		—		—			—			—		—		—			23,505			—			23,505
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		(982	)		—			—			(982	)
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—		—			—			—		—		(17	)		—			—			(17	)
Cash dividends paid (common stock, $0.28/share)		—		—			—			—		—		—			(8,333	)		—			(8,333	)
Repurchase of common stock		—		(160,000	)		(160,000	)		—		—		—			—			(4,838	)		(4,838	)
Issuance of awards pursuant to equity incentive plans, net of forfeitures		18,746		—			18,746			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		929		—			—			—			929
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(15,134	)		(15,134	)		—		—		—			—			(403	)		(403	)
Balance at June 30, 2026		34,445,437		(4,795,131	)		29,650,306		$	34	$	596,303	$	(46,552	)	$	423,499		$	(160,604	)	$	812,680

Balance at April 1, 2025		34,265,030		(4,031,516	)		30,233,514		$	34	$	591,942	$	(60,002	)	$	360,289		$	(140,778	)	$	751,485
Net income		—		—			—			—		—		—			15,117			—			15,117
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		5,482			—			—			5,482
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—		—			—			—		—		9			—			—			9
Cash dividends paid (common stock, $0.27/share)		—		—			—			—		—		—			(8,155	)		—			(8,155	)
Repurchase of common stock		—		(70,000	)		(70,000	)		—		—		—			—			(1,628	)		(1,628	)
Issuance of awards pursuant to equity incentive plans, net of forfeitures		29,007		—			29,007			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		883		—			—			—			883
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(15,953	)		(15,953	)		—		—		—			—			(359	)		(359	)
Balance at June 30, 2025		34,294,037		(4,117,469	)		30,176,568		$	34	$	592,825	$	(54,511	)	$	367,251		$	(142,765	)	$	762,834

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Six Months Ended June 30, 2026 and 2025

(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, 2026		34,287,779		(4,393,022	)		29,894,757		$	34	$	594,667	$	(43,175	)	$	394,335		$	(149,475	)	$	796,386
Net income		—		—			—			—		—		—			46,062			—			46,062
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		(3,276	)		—			—			(3,276	)
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—		—			—			—		—		(101	)		—			—			(101	)
Cash dividends paid (common stock, $0.56/share)		—		—			—			—		—		—			(16,898	)		—			(16,898	)
Repurchase of common stock		—		(345,707	)		(345,707	)		—		—		—			—			(9,646	)		(9,646	)
Stock options exercised		—		—			—			—		—		—			—			—			—
Issuance of awards pursuant to equity incentive plans, net of forfeitures		157,658		—			157,658			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		1,636		—			—			—			1,636
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(56,402	)		(56,402	)		—		—		—			—			(1,483	)		(1,483	)
Balance at June 30, 2026		34,445,437		(4,795,131	)		29,650,306		$	34	$	596,303	$	(46,552	)	$	423,499		$	(160,604	)	$	812,680

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
Net income		—		—			—			—		—		—			32,789			—			32,789
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		15,892			—			—			15,892
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—		—			—			—		—		320			—			—			320
Cash dividends paid (common stock, $0.54/share)		—		—			—			—		—		—			(16,407	)		—			(16,407	)
Repurchase of common stock		—		(120,000	)		(120,000	)		—		—		—			—			(2,752	)		(2,752	)
Issuance of awards pursuant to equity incentive plans, net of forfeitures		142,573		—			142,573			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		1,756		—			—			—			1,756
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(42,004	)		(42,004	)		—		—		—			—			(938	)		(938	)
Balance at June 30, 2025		34,294,037		(4,117,469	)		30,176,568		$	34	$	592,825	$	(54,511	)	$	367,251		$	(142,765	)	$	762,834

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)


	Six Months Ended June 30,
	2026			2025
Cash flows from operating activities:
Net income	$	46,062		$	32,789
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,720			1,629
Amortization of servicing assets - net		1,153			1,335
Share-based compensation expense		1,636			1,756
Credit loss expense		4,078			10,352
Gain on sales of other real estate owned		(850	)		—
Gain on sales of SBA loans		(3,421	)		(4,161	)
Gain on sales of residential mortgage loans		(842	)		(175	)
Origination of loans held for sale		(128,320	)		(108,610	)
Proceeds from sales of loans		123,263			83,090
Change in bank-owned life insurance		649			183
Change in prepaid expenses and other assets		(6,624	)		(4,686	)
Change in income tax assets		(11,839	)		(988	)
Change in accrued interest payable and other liabilities		(11,613	)		(4,636	)
Net cash provided by operating activities		15,052			7,878
Cash flows from investing activities:
Purchases of securities available for sale		(181,101	)		(101,004	)
Proceeds from matured, called and repayment of securities		159,276			109,626
Purchases of loans		(12,569	)		(44,631	)
Purchases of premises and equipment		(1,592	)		(832	)
Proceeds from disposition of premises and equipment		16			14
Proceeds from sales of other real estate owned ("OREO")		2,830			713
Change in loans, excluding purchases and sales		36,788			(34,761	)
Net cash provided by (used in) investing activities		3,648			(70,875	)
Cash flows from financing activities:
Change in deposits		277,692			293,346
Change in open FHLB advances		—			(135,000	)
Repayments of FHLB term advances		(150,000	)		—
Cash paid for surrendered employee vested shares due to tax liability		(1,483	)		(938	)
Repurchase of common stock		(9,646	)		(2,754	)
Cash dividends paid		(16,898	)		(16,407	)
Net cash provided by financing activities		99,665			138,247
Net increase in cash and due from banks		118,365			75,250
Cash and due from banks at beginning of year		212,841			304,800
Cash and due from banks at end of period	$	331,206		$	380,050
Supplemental disclosures of cash flow information:
Interest paid	$	85,667		$	92,615
Income taxes paid	$	26,884		$	13,590
Non-cash activities:
Transfer of loans to loans held for sale	$	1,433		$	—
Income tax benefit (expense) related to other comprehensive income items	$	1,271		$	(6,484	)
Right-of-use asset obtained in exchange for lease liability	$	3,591		$	3,814

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 period ended June 30, 2026. 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 and six-month periods ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ended December 31, 2026 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, 2025 (the “2025 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 2025 Annual Report on Form 10-K.

Accounting Standards Adopted in 2026

The Company has not adopted any accounting standards in 2026.

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 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.

ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software: In September 2025, the FASB issued ASU 2025-06 to simplify the accounting for internal-use software by replacing the existing project-stage-based model with a principles-based approach to determine capitalizable versus non-capitalizable costs. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The adoption of ASU 2025-06 is not expected to have a material effect on the Company’s operating results or financial condition.

ASU 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans: In November 2025, the FASB issued ASU 2025-08 to improve the accounting for acquired financial assets by expanding the gross-up approach to all purchased loans and eliminating the previous duplication inherent in Day 1 credit loss measurement. ASU 2025-08 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The adoption of ASU 2025-08 is not expected to have a material effect on the Company's operating results or financial condition.

ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements: In November 2025, the FASB issued ASU 2025-09 to more closely align hedge accounting with the economics of an entity's risk management activities by enabling entities to achieve and maintain hedge accounting for highly effective economic hedges of forecasted transactions. ASU 2025-09 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The adoption of ASU 2025-09 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)
June 30, 2026
U.S. Treasury securities	$	211,878	$	24	$	(485	)	$	211,417
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		394,720		538		(40,430	)		354,828
Mortgage-backed securities - commercial		73,852		17		(11,669	)		62,200
Collateralized mortgage obligations		164,731		486		(6,265	)		158,952
Debt securities		42,565		—		(539	)		42,026
Total U.S. government agency and sponsored agency obligations		675,868		1,041		(58,903	)		618,006
Municipal bonds-tax exempt		74,509		—		(7,322	)		67,187
Total securities available for sale	$	962,255	$	1,065	$	(66,710	)	$	896,610

December 31, 2025
U.S. Treasury securities	$	128,569	$	298	$	(157	)	$	128,710
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		411,223		926		(38,741	)		373,408
Mortgage-backed securities - commercial		71,751		116		(11,295	)		60,572
Collateralized mortgage obligations		188,120		1,768		(5,933	)		183,955
Debt securities		67,059		—		(1,105	)		65,954
Total U.S. government agency and sponsored agency obligations		738,153		2,810		(57,074	)		683,889
Municipal bonds-tax exempt		75,038		—		(7,013	)		68,025
Total securities available for sale	$	941,760	$	3,108	$	(64,244	)	$	880,624

The amortized cost and estimated fair value of securities as of June 30, 2026 and December 31, 2025, 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. Mortgage-backed securities included in the table below may be repaid before their contractual maturities.


	June 30, 2026				December 31, 2025
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	182,678	$	181,944	$	159,050	$	158,399
Over one year through five years		96,493		95,365		65,994		64,919
Over five years through ten years		286,927		258,160		234,306		213,596
Over ten years		396,157		361,141		482,410		443,710
Total	$	962,255	$	896,610	$	941,760	$	880,624

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 June 30, 2026 or December 31, 2025, 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)
June 30, 2026
U.S. Treasury securities	$	(423	)	$	174,452		39	$	(62	)	$	10,440		3	$	(485	)	$	184,892		42
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(291	)		24,434		6		(40,139	)		297,345		115		(40,430	)		321,779		121
Mortgage-backed securities - commercial		(166	)		12,221		4		(11,503	)		48,288		14		(11,669	)		60,509		18
Collateralized mortgage obligations		(212	)		52,053		13		(6,053	)		41,783		21		(6,265	)		93,836		34
Debt securities		(36	)		9,963		2		(503	)		32,062		7		(539	)		42,025		9
Total U.S. government agency and sponsored agency obligations		(705	)		98,671		25		(58,198	)		419,478		157		(58,903	)		518,149		182
Municipal bonds-tax exempt		—			—		—		(7,322	)		67,186		19		(7,322	)		67,186		19
Total	$	(1,128	)	$	273,123		64	$	(65,582	)	$	497,104		179	$	(66,710	)	$	770,227		243

December 31, 2025
U.S. Treasury securities	$	—		$	4,999		1	$	(157	)	$	10,351		3	$	(157	)	$	15,350		4
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(46	)		4,629		2		(38,695	)		322,912		114		(38,741	)		327,541		116
Mortgage-backed securities - commercial		—			—		—		(11,295	)		54,316		16		(11,295	)		54,316		16
Collateralized mortgage obligations		—			—		—		(5,933	)		50,264		24		(5,933	)		50,264		24
Debt securities		—			—		—		(1,105	)		65,954		13		(1,105	)		65,954		13
Total U.S. government agency and sponsored agency obligations		(46	)		4,629		2		(57,028	)		493,446		167		(57,074	)		498,075		169
Municipal bonds-tax exempt		—			—		—		(7,013	)		68,025		19		(7,013	)		68,025		19
Total	$	(46	)	$	9,628		3	$	(64,198	)	$	571,822		189	$	(64,244	)	$	581,450		192

The Company evaluates its available for sale securities portfolio for impairment on a quarterly basis. The Company did not recognize unrealized losses in income because it has the ability and the intent to hold and does not expect to be required to sell these securities until the recovery of their cost basis. The quarterly impairment assessment takes into account the changes in the credit quality of these debt securities since acquisition and the likelihood of a credit loss occurring over the life of the securities. If a credit loss is expected to occur, an allowance is established and a corresponding credit loss is recognized. Based on this analysis, the Company determined that no credit losses are expected to be realized on the tax-exempt municipal bond portfolio. The remainder of the securities 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 six months ended June 30, 2026 or June 30, 2025.

As of June 30, 2026 and December 31, 2025, there were no securities available for sale that were pledged to secure advances or other borrowings.

At June 30, 2026, 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, net of allowance for credit losses

Loans, net of allowance for credit losses, consisted of the following as of the dates indicated:


	June 30, 2026			December 31, 2025
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,193,177		$	1,132,439
Hospitality		858,617			847,989
Office		479,110			503,268
Other (1)		1,477,659			1,532,667
Total commercial property loans		4,008,563			4,016,363
Construction		13,757			13,742
Residential (2)		978,881			1,049,872
Total real estate loans		5,001,201			5,079,977
Commercial and industrial loans		1,171,272			1,074,908
Equipment financing agreements		362,839			408,483
Total loans		6,535,312			6,563,368
Allowance for credit losses		(70,475	)		(69,903	)
Total loans, net of allowance for credit losses	$	6,464,837		$	6,493,465

(1)

Includes, among other property types, mixed-use, gas station, multifamily, industrial, and faith-based facilities; the remaining real estate categories represent less than 1% of the Bank's total loans.

(2)

Includes $0.9 million and $1.0 million of home equity loans and lines and $4.9 million and $3.8 million of personal loans at June 30, 2026 and December 31, 2025, respectively.

Accrued interest receivable on loans was $20.2 million and $20.7 million at June 30, 2026 and December 31, 2025, respectively.

At June 30, 2026 and December 31, 2025, loans with carrying values of $2.20 billion and $2.40 billion, respectively, were pledged to secure advances from the FHLB, and loans with carrying values of $1.22 billion and $528.1 million, respectively, were pledged to the Federal Reserve Bank of San Francisco Discount Window.

Loans Held for Sale

Activity in loans held for sale is presented below for the following periods:


	Real Estate			Commercial and Industrial			Total
	(in thousands)
Three months ended June 30, 2026
Balance at beginning of period	$	2,714		$	2,218		$	4,932
Originations and transfers		53,118			14,093			67,211
Sales		(42,541	)		(12,216	)		(54,757	)
Principal paydowns and amortization		(1	)		(416	)		(417	)
Balance at end of period	$	13,290		$	3,679		$	16,969

Three months ended June 30, 2025
Balance at beginning of period	$	5,015		$	6,816		$	11,831
Originations and transfers		56,000			17,190			73,190
Sales		(15,601	)		(19,787	)		(35,388	)
Principal paydowns and amortization		(2	)		(20	)		(22	)
Balance at end of period	$	45,412		$	4,199		$	49,611


	Real Estate			Commercial and Industrial			Total
	(in thousands)
Six months ended June 30, 2026
Balance at beginning of period	$	4,985		$	2,418		$	7,403
Originations and transfers		104,742			25,011			129,753
Sales		(95,668	)		(23,332	)		(119,000	)
Principal payoffs and amortization		(769	)		(418	)		(1,187	)
Balance at end of period	$	13,290		$	3,679		$	16,969

Six months ended June 30, 2025
Balance at beginning of period	$	3,994		$	4,585		$	8,579
Originations and transfers		74,615			33,995			108,610
Sales		(33,195	)		(34,358	)		(67,553	)
Principal payoffs and amortization		(2	)		(23	)		(25	)
Balance at end of period	$	45,412		$	4,199		$	49,611

All loans sold during the six months ended June 30, 2026 were sold from the held for sale portfolio. During 2025, we sold residential mortgage loans from the held for investment portfolio when the decision to sell the loans and the sale of the loans occurred within the same quarter. During the six months ended June 30, 2025, we sold $10.0 million of residential mortgage loans from the held for investment portfolio, and none from the held for sale portfolio. During the three months ended June 30, 2025, we sold no residential mortgage loans.

Loan Purchases

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
	(in thousands)
Commercial real estate	$	—	$	—	$	—	$	15,113
Commercial and industrial		268		—		268		9,203
Residential real estate		12,301		10,330		12,301		20,315
Total	$	12,569	$	10,330	$	12,569	$	44,631

Allowance for Credit Losses

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


	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
Three months ended June 30, 2026
Balance at beginning of period	$	50,108		$	8,811		$	11,549		$	70,468
Charge-offs		(28	)		(275	)		(1,590	)		(1,893	)
Recoveries		39			37			553			629
Credit loss expense (recovery)		(992	)		107			2,156			1,271
Ending balance	$	49,127		$	8,680		$	12,668		$	70,475

Three months ended June 30, 2025
Balance at beginning of period	$	51,302		$	6,242		$	13,053		$	70,597
Charge-offs		(8,615	)		(811	)		(2,951	)		(12,377	)
Recoveries		194			198			621			1,013
Credit loss expense		5,140			1,306			1,077			7,523
Ending balance	$	48,021		$	6,935		$	11,800		$	66,756


	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
Six months ended June 30, 2026
Balance at beginning of period	$	51,670		$	7,792		$	10,441		$	69,903
Charge-offs		(160	)		(402	)		(4,502	)		(5,064	)
Recoveries		84			76			1,042			1,202
Credit loss expense (recovery)		(2,467	)		1,214			5,687			4,434
Ending balance	$	49,127		$	8,680		$	12,668		$	70,475

Six months ended June 30, 2025
Balance at beginning of period	$	45,099		$	10,006		$	15,042		$	70,147
Charge-offs		(8,785	)		(1,033	)		(5,749	)		(15,567	)
Recoveries		618			234			1,404			2,256
Credit loss expense (recovery)		11,089			(2,272	)		1,103			9,920
Ending balance	$	48,021		$	6,935		$	11,800		$	66,756

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 total investment in loans as of:


	June 30, 2026										December 31, 2025
	Allowance					Loans					Allowance					Loans
	Amount		%			Amount		%			Amount		%			Amount		%
	(dollars in thousands)
Real estate loans:
Commercial property
Retail	$	11,022		15.6	%	$	1,193,177		18.3	%	$	9,999		14.3	%	$	1,132,439		17.3	%
Hospitality		7,475		10.6			858,617		13.1			8,737		12.5			847,989		12.9
Office		4,968		7.1			479,110		7.3			5,700		8.2			503,268		7.7
Other		13,828		19.6			1,477,659		22.6			14,078		20.1			1,532,667		23.4
Total commercial property loans		37,293		52.9			4,008,563		61.3			38,514		55.1			4,016,363		61.3
Construction		174		0.3			13,757		0.2			208		0.3			13,742		0.2
Residential		11,659		16.5			978,881		15.0			12,948		18.5			1,049,872		16.0
Total real estate loans		49,126		69.7			5,001,201		76.5			51,670		73.9			5,079,977		77.5
Commercial and industrial loans		8,681		12.3			1,171,272		17.9			7,792		11.1			1,074,908		16.4
Equipment financing agreements		12,668		18.0			362,839		5.6			10,441		15.0			408,483		6.1
Total	$	70,475		100.0	%	$	6,535,312		100.0	%	$	69,903		100.0	%	$	6,563,368		100.0	%

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


	June 30, 2026		December 31, 2025
	(in thousands)
Real estate loans:
Commercial property
Retail	$	429	$	596
Hospitality		—		—
Office		337		10,159
Other		1,143		671
Total commercial property loans		1,909		11,426
Residential		3,251		1,113
Total real estate loans		5,160		12,539
Total	$	5,160	$	12,539

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 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. Pass-Watch loans, grade (4), require enhanced attention due to financial or other circumstances facing the borrowers, which may adversely affect future financial performance.

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)
	2026		2025			2024		2023		2022		Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
June 30, 2026
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	738,201	$	811,834		$	374,320	$	352,443	$	788,844	$	816,289		$	39,836		$	3,921,767
Special Mention		816		54,500			—		521		594		293			—			56,724
Classified		—		596			—		21,186		1,336		6,954			—			30,072
Total commercial property		739,017		866,930			374,320		374,150		790,774		823,536			39,836			4,008,563
YTD gross charge-offs		—		—			—		—		41		91			—			132
YTD net charge-offs (recoveries)		—		(5	)		—		—		41		14			—			50

Construction
Risk Rating
Pass / Pass-Watch		2,562		7,196			3,999		—		—		—			—			13,757
Special Mention		—		—			—		—		—		—			—			—
Classified		—		—			—		—		—		—			—			—
Total construction		2,562		7,196			3,999		—		—		—			—			13,757
YTD gross charge-offs		—		—			—		—		—		—			—			—
YTD net charge-offs (recoveries)		—		—			—		—		—		—			—			—

Residential
Risk Rating
Pass / Pass-Watch		69,820		203,412			61,386		115,578		309,122		208,702			5,197			973,217
Special Mention		—		—			—		—				—			—			—
Classified		—		—			663		878		3,502		621			—			5,664
Total residential		69,820		203,412			62,049		116,456		312,624		209,323			5,197			978,881
YTD gross charge-offs		—		—			—		—		28		—			—			28
YTD net charge-offs (recoveries)		—		—			—		—		28		(2	)		—			26

Total real estate loans
Risk Rating
Pass / Pass-Watch		810,583		1,022,442			439,705		468,021		1,097,966		1,024,991			45,033			4,908,741
Special Mention		816		54,500			—		521		594		293			—			56,724
Classified		—		596			663		22,064		4,838		7,575			—			35,736
Total real estate loans		811,399		1,077,538			440,368		490,606		1,103,398		1,032,859			45,033			5,001,201
YTD gross charge-offs		—		—			—		—		69		91			—			160
YTD net charge-offs (recoveries)		—		(5	)		—		—		69		12			—			76

Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		264,494		281,204			142,939		35,570		20,474		22,771			386,545			1,153,997
Special Mention		242		—			35		—		11,197		—			—			11,474
Classified		4,998		151			85		—		124		43			400			5,801
Total commercial and industrial loans		269,734		281,355			143,059		35,570		31,795		22,814			386,945			1,171,272
YTD gross charge-offs		—		37			91		51		155		68			—			402
YTD net charge-offs (recoveries)		—		37			91		51		120		28			(1	)		326

Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		62,615		116,418			67,967		61,519		41,488		8,621			—			358,628
Special Mention		—		—			—		—		—		—			—			—
Classified		—		811			929		940		1,126		405			—			4,211
Total equipment financing agreements		62,615		117,229			68,896		62,459		42,614		9,026			—			362,839
YTD gross charge-offs		—		1,551			525		802		1,260		364			—			4,502
YTD net charge-offs (recoveries)		—		1,549			471		671		989		(220	)		—			3,460

Total loans:
Risk Rating
Pass / Pass-Watch		1,137,692		1,420,064			650,611		565,110		1,159,928		1,056,383			431,578			6,421,366
Special Mention		1,058		54,500			35		521		11,791		293			—			68,198
Classified		4,998		1,558			1,677		23,004		6,088		8,023			400			45,748
Total loans	$	1,143,748	$	1,476,122		$	652,323	$	588,635	$	1,177,807	$	1,064,699		$	431,978		$	6,535,312
YTD gross charge-offs		—		1,588			616		853		1,484		523			—			5,064
YTD net charge-offs (recoveries)		—		1,581			562		722		1,178		(180	)		(1	)		3,862

(1)

Origination year includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.


	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2025			2024		2023		2022		2021		Prior			Revolving Loans Amortized Cost Basis			Total

December 31, 2025
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	1,181,833		$	402,354	$	472,027	$	808,330	$	735,411	$	285,598		$	54,824		$	3,940,377
Special Mention		55,029			—		—		148		1,371		298			—			56,846
Classified		3,846			—		—		11,225		—		4,069			—			19,140
Total commercial property		1,240,708			402,354		472,027		819,703		736,782		289,965			54,824			4,016,363
YTD gross charge-offs		—			—		—		8,820		—		392			—			9,212
YTD net charge-offs (recoveries)		(8	)		—		—		8,547		—		(24	)		—			8,515

Construction
Risk Rating
Pass / Pass-Watch		9,745			3,997		—		—		—		—			—			13,742
Special Mention		—			—		—		—		—		—			—			—
Classified		—			—		—		—		—		—			—			—
Total construction		9,745			3,997		—		—		—		—			—			13,742
YTD gross charge-offs		—			—		—		—		—		—			—			—
YTD net charge-offs (recoveries)		—			—		—		—		—		—			—			—

Residential
Risk Rating
Pass / Pass-Watch		258,847			84,457		142,926		326,126		132,510		97,076			4,154			1,046,096
Special Mention		—			—		—		2,417		—		—			250			2,667
Classified		—			—		—		1,113		—		(4	)		—			1,109
Total residential		258,847			84,457		142,926		329,656		132,510		97,072			4,404			1,049,872
YTD gross charge-offs		—			—		—		—		—		—			—			—
YTD net charge-offs (recoveries)		—			—		—		—		—		(4	)		—			(4	)

Total real estate loans
Risk Rating
Pass / Pass-Watch		1,450,425			490,808		614,953		1,134,456		867,921		382,674			58,978			5,000,215
Special Mention		55,029			—		—		2,565		1,371		298			250			59,513
Classified		3,846			—		—		12,338		—		4,065			—			20,249
Total real estate loans		1,509,300			490,808		614,953		1,149,359		869,292		387,037			59,228			5,079,977
YTD gross charge-offs		—			—		—		8,820		—		392			—			9,212
YTD net charge-offs (recoveries)		(8	)		—		—		8,547		—		(28	)		—			8,511

Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		426,520			168,307		40,485		44,797		19,772		16,931			345,975			1,062,787
Special Mention		—			—		—		11,600		—		—			—			11,600
Classified		—			—		—		148		—		21			352			521
Total commercial and industrial loans		426,520			168,307		40,485		56,545		19,772		16,952			346,327			1,074,908
YTD gross charge-offs		19			373		59		853		82		322			—			1,708
YTD net charge-offs (recoveries)		19			366		54		750		82		46			(2,723	)		(1,406	)

Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		144,142			87,819		85,652		65,042		19,188		1,529			—			403,372
Special Mention		—			—		—		—		—		—			—			—
Classified		506			726		1,202		1,962		583		132			—			5,111
Total equipment financing agreements		144,648			88,545		86,854		67,004		19,771		1,661			—			408,483
YTD gross charge-offs		—			875		2,728		4,658		1,706		159			—			10,126
YTD net charge-offs (recoveries)		—			831		2,297		3,579		831		(234	)		(2	)		7,302

Total loans:
Risk Rating
Pass / Pass-Watch		2,021,087			746,934		741,090		1,244,295		906,881		401,134			404,953			6,466,374
Special Mention		55,029			—		—		14,165		1,371		298			250			71,113
Classified		4,352			726		1,202		14,448		583		4,218			352			25,881
Total loans	$	2,080,468		$	747,660	$	742,292	$	1,272,908	$	908,835	$	405,650		$	405,555		$	6,563,368
YTD gross charge-offs		19			1,248		2,787		14,331		1,788		873			—			21,046
YTD net charge-offs (recoveries)		11			1,197		2,351		12,876		913		(216	)		(2,725	)		14,407

(1)

Origination year 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)
	2026		2025			2024		2023		2022		Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
June 30, 2026
Real estate loans:
Commercial property
Payment performance
Performing	$	739,017	$	866,334		$	374,320	$	374,150	$	790,337	$	822,201		$	39,836		$	4,006,195
Nonperforming		—		596			—		—		437		1,335			—			2,368
Total commercial property		739,017		866,930			374,320		374,150		790,774		823,536			39,836			4,008,563
YTD gross charge-offs		—		—			—		—		41		91			—			132
YTD net charge-offs (recoveries)		—		(5	)		—		—		41		14			—			50

Construction
Payment performance
Performing		2,562		7,196			3,999		—		—		—			—			13,757
Nonperforming		—		—			—		—		—		—			—			—
Total construction		2,562		7,196			3,999		—		—		—			—			13,757
YTD gross charge-offs		—		—			—		—		—		—			—			—
YTD net charge-offs (recoveries)		—		—			—		—		—		—			—			—

Residential
Payment performance
Performing		69,820		203,412			61,386		115,578		311,538		208,702			5,197			975,633
Nonperforming							663		878		1,086		621			—			3,248
Total residential		69,820		203,412			62,049		116,456		312,624		209,323			5,197			978,881
YTD gross charge-offs		—		—			—		—		28		—			—			28
YTD net charge-offs (recoveries)		—		—			—		—		28		(2	)		—			26

Total real estate loans
Payment performance
Performing		811,399		1,076,942			439,705		489,728		1,101,875		1,030,903			45,033			4,995,585
Nonperforming		—		596			663		878		1,523		1,956			—			5,616
Total real estate loans		811,399		1,077,538			440,368		490,606		1,103,398		1,032,859			45,033			5,001,201
YTD gross charge-offs		—		—			—		—		69		91			—			160
YTD net charge-offs (recoveries)		—		(5	)		—		—		69		12			—			76

Commercial and industrial loans:
Payment performance
Performing		269,734		281,336			142,974		35,570		31,795		22,814			386,945			1,171,168
Nonperforming		—		19			85		—		—		—			—			104
Total commercial and industrial loans		269,734		281,355			143,059		35,570		31,795		22,814			386,945			1,171,272
YTD gross charge-offs		—		37			91		51		155		68			—			402
YTD net charge-offs (recoveries)		—		37			91		51		120		28			(1	)		326

Equipment financing agreements:
Payment performance
Performing		62,615		116,418			67,967		61,519		41,488		8,621			—			358,628
Nonperforming		—		811			929		940		1,126		405

For the Quarterly Period Ended June 30, 2026

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 June 30, 2026 and 2025

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Six Months Ended June 30, 2026 and 2025

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 2026

Recently Issued Accounting Standards Not Yet Effective

Note 2 — Securities

Note 3 — Loans

Loans, net of allowance for credit losses

Loans Held for Sale