Hanmi Financial Corporation Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

As of March 31, 2018 and December 31, 2017, assets and liabilities measured at fair value on a recurring basis are as follows:



	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs with No Active Market with Identical Characteristics		Significant Unobservable Inputs		Balance
	(in thousands)
March 31, 2018
Assets:
Securities available for sale:
Mortgage-backed securities	$	—	$	314,969	$	—	$	314,969
Collateralized mortgage obligations	—		124,188		—		124,188
U.S. government agency securities	—		7,368		—		7,368
Municipal bonds-tax exempt	—		123,826		—		123,826
Total securities available for sale	$	—	$	570,351	$	—	$	570,351

December 31, 2017
Assets:
Securities available for sale:
Mortgage-backed securities	$	—	$	303,609	$	—	$	303,609
Collateralized mortgage obligations	—		117,768		—		117,768
U.S. government agency securities	—		7,414		—		7,414
Municipal bonds-tax exempt	—		127,475		—		127,475
U.S. treasury securities	152		—		—		152
Mutual funds	22,386		—		—		22,386
Total securities available for sale	$	22,538	$	556,266	$	—	$	578,804

As of March 31, 2018 and December 31, 2017, assets and liabilities measured at fair value on a non-recurring basis are as follows:



	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs With No Active Market With Identical Characteristics		Significant Unobservable Inputs		Loss During the Three Months Ended March 31, 2018
	(in thousands)
March 31, 2018
Assets:
Impaired loans ⁽¹⁾	$	—	$	4,786	$	1,031	$	456
OREO	—		1,660		—		—

							Loss During the Twelve Months Ended December 31, 2017
December 31, 2017
Assets:
Impaired loans ⁽²⁾	$	—	$	6,121	$	2,436	$	2,730
OREO	—		1,946		—		—


⁽¹⁾	Consist of real estate loans of $4.7 million and commercial and industrial loans of $1.1 million.


⁽²⁾	Consist of real estate loans of $6.7 million, commercial and industrial loans of $1.7 million.

estimated fair values of financial instruments were as follows:



	March 31, 2018
	Carrying	Fair Value
	Amount	Level 1	Level 2	Level 3
	(in thousands)
Financial assets:
Cash and due from banks	151,611	151,611	—	—
Securities available for sale	570,351	—	570,351	—
Loans and leases receivable, net of allowance for loan and lease losses	4,381,780	—	—	4,392,889
Loans held for sale	6,008	—	6,461	—
Accrued interest receivable	12,751	12,751	—	—
FHLB stock	16,385	—	16,385	—
Financial liabilities:
Noninterest-bearing deposits	1,352,162	—	1,352,162	—
Interest-bearing deposits	3,025,939	—	—	2,905,169
Borrowings and subordinated debentures	337,400	—	—	337,822
Accrued interest payable	5,931	5,931	—	—
Off-balance sheet items:
Commitments to extend credit	324,528	—	—	324,528
Standby letters of credit	22,288	—	—	22,288
Commercial letters of credit	11,560	—	—	11,560



	December 31, 2017
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	153,826	$	153,826	$	—	$	—
Securities available for sale	578,804		22,538		556,266		—
Loans and leases receivable, net of allowance for loan and lease losses	4,273,415		—		—		4,213,689
Loans held for sale	6,394		—		6,394		—
Accrued interest receivable	12,770		12,770		—		—
FHLB stock	16,385		—		16,385		—
Financial liabilities:
Noninterest-bearing deposits	1,312,274		—		1,312,274		—
Interest-bearing deposits	3,036,380		—		—		2,973,139
Borrowings and subordinated debentures	267,270		—		—		267,270
Accrued interest payable	5,309		5,309		—		—
Off-balance sheet items:
Commitments to extend credit	318,634		—		—		318,634
Standby letters of credit	19,294		—		—		19,294
Commercial letters of credit	9,308		—		—		9,308