Note 10 — Regulatory Matters

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

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

At March 31, 2026, the Bank’s capital ratios exceeded the minimum requirements for the Bank to be considered “well capitalized” and the Company exceeded all of its applicable minimum regulatory capital ratio requirements.

A capital conservation buffer of 2.5% must be met to avoid limitations on the ability of the Bank and the Company to pay dividends, repurchase shares or pay discretionary bonuses. The Bank's capital conservation buffer was 6.45% and 6.25% and the Company’s capital conservation buffer was 6.52% and 6.37% as of March 31, 2026 and December 31, 2025, respectively.

The capital ratios of Hanmi Financial and the Bank as of March 31, 2026 and December 31, 2025 were as follows:


						Minimum					Minimum to Be
						Regulatory					Categorized as
	Actual					Requirement					“Well Capitalized”
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(dollars in thousands)
March 31, 2026
Total capital (to risk-weighted assets):
Hanmi Financial	$	1,030,325		15.22	%	$	541,435		8.00	%	N/A		N/A
Hanmi Bank	$	977,985		14.45	%	$	541,456		8.00	%	$	676,820		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	847,283		12.52	%	$	406,076		6.00	%	N/A		N/A
Hanmi Bank	$	904,943		13.37	%	$	406,092		6.00	%	$	541,456		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	825,453		12.20	%	$	304,557		4.50	%	N/A		N/A
Hanmi Bank	$	904,943		13.37	%	$	304,569		4.50	%	$	439,933		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	847,283		10.93	%	$	310,153		4.00	%	N/A		N/A
Hanmi Bank	$	904,943		11.74	%	$	308,220		4.00	%	$	385,275		5.00	%

December 31, 2025
Total capital (to risk-weighted assets):
Hanmi Financial	$	1,020,898		15.06	%	$	542,150		8.00	%	N/A		N/A
Hanmi Bank	$	965,543		14.25	%	$	542,197		8.00	%	$	677,747		10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial	$	838,150		12.37	%	$	406,612		6.00	%	N/A		N/A
Hanmi Bank	$	892,795		13.17	%	$	406,648		6.00	%	$	542,197		8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial	$	816,424		12.05	%	$	304,959		4.50	%	N/A		N/A
Hanmi Bank	$	892,795		13.17	%	$	304,986		4.50	%	$	440,535		6.50	%
Tier 1 capital (to average assets):
Hanmi Financial	$	838,150		10.70	%	$	313,270		4.00	%	N/A		N/A
Hanmi Bank	$	892,795		11.47	%	$	311,425		4.00	%	$	389,281		5.00	%

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details