Hanmi Financial Corporation Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

Assets and Liabilities Measured at Fair Value on Recurring Basis

As of March 31, 2026 and December 31, 2025, assets and liabilities measured at fair value on a recurring basis are as follows:


	Level 1		Level 2		Level 3
			Significant
			Observable
	Quoted Prices in		Inputs with No
	Active Markets		Active Market		Significant
	for Identical		with Identical		Unobservable
	Assets		Characteristics		Inputs		Total Fair Value
	(in thousands)
March 31, 2026
Assets:
Securities available for sale:
U.S. Treasury securities	$	128,591	$	—	$	—	$	128,591
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		—		361,360		—		361,360
Mortgage-backed securities - commercial		—		62,898		—		62,898
Collateralized mortgage obligations		—		164,159		—		164,159
Debt securities		—		52,283		—		52,283
Total U.S. government agency and sponsored agency obligations		—		640,700		—		640,700
Municipal bonds-tax exempt		—		66,434		—		66,434
Total securities available for sale	$	128,591	$	707,134	$	—	$	835,725
Derivative financial instruments	$	—	$	2,377	$	—	$	2,377

Liabilities:
Derivative financial instruments	$	—	$	2,318	$	—	$	2,318

December 31, 2025
Assets:
Securities available for sale:
U.S. Treasury securities	$	128,710	$	—	$	—	$	128,710
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		—		373,408		—		373,408
Mortgage-backed securities - commercial		—		60,572		—		60,572
Collateralized mortgage obligations		—		183,955		—		183,955
Debt securities		—		65,954		—		65,954
Total U.S. government agency and sponsored agency obligations		—		683,889		—		683,889
Municipal bonds-tax exempt		—		68,025		—		68,025
Total securities available for sale	$	128,710	$	751,914	$	—	$	880,624
Derivative financial instruments	$	—	$	2,719	$	—	$	2,719

Liabilities:
Derivative financial instruments	$	—	$	2,568	$	—	$	2,568

Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

As of March 31, 2026 and December 31, 2025, assets and liabilities measured at fair value on a non-recurring basis are as follows:


			Level 1		Level 2		Level 3
					Significant
					Observable
			Quoted Prices in		Inputs With No
			Active Markets		Active Market		Significant
			for Identical		With Identical		Unobservable
	Total		Assets		Characteristics		Inputs
	(in thousands)
March 31, 2026
Assets:
Collateral dependent loans (1)	$	1,104	$	—	$	—	$	1,104
Repossessed personal property		294		—		—		294

December 31, 2025
Assets:
Collateral dependent loans (2)	$	12,539	$	—	$	—	$	12,539
Other real estate owned		1,980		—		—		1,980
Repossessed personal property		588		—		—		588

(1)

Consisted of one real estate loan.

(2)

Consisted entirely of real estate loans.

Quantitative Information about Level 3 Fair Value Assumptions for Assets Measured at Fair Value on Non-Recurring Basis

The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at March 31, 2026 and December 31, 2025:


	Fair Value		Valuation Techniques	Unobservable Input(s)	Range (Weighted Average)
	(in thousands)
March 31, 2026
Collateral dependent loans:
Real estate loans:
Residential		1,104	Market approach	Adjustments to market data	(13)% to 1% / (5)%	(1)
Total loans	$	1,104

Repossessed personal property	$	294	Market approach	Adjustments to market data	N/A	(2)

December 31, 2025
Collateral dependent loans:
Real estate loans:
Commercial property
Retail	$	596	Market approach	Adjustments to market data	(26)% to 20% / (8)%	(1)
Office		10,159	Market approach	Adjustments to market data	(26)% to (4)% / (14)%	(1)
Other		671	Market approach	Adjustments to market data	(6)% to 1% / (3)%	(1)
Residential		1,113	Market approach	Adjustments to market data	(13)% to 1% / (5%)	(1)
Total loans	$	12,539

Other real estate owned	$	1,980	Market approach	Adjustments to market data	(10)% to 5% / 0%	(1)

Repossessed personal property		588	Market approach	Adjustments to market data	N/A	(2)

(1)

Appraisal reports utilize a combination of valuation techniques including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine the appraised value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation scenarios. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in this table represent increases to the sales comparison and negative adjustments represent decreases.

(2)

The equipment is usually too low in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons, depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values.

Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments were as follows:


	March 31, 2026
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	254,045	$	254,045	$	—	$	—
Securities available for sale		835,725		128,591		707,134		—
Loans held for sale		4,932		—		5,179		—
Loans, net of allowance for credit losses		6,474,998		—		—		6,512,774
Accrued interest receivable		23,320		23,320		—		—

Financial liabilities:
Interest-bearing deposits		4,769,879		—		—		4,769,082
Borrowings and subordinated debentures		130,618		—		—		138,545
Accrued interest payable		30,592		30,592		—		—


	December 31, 2025
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3
	(in thousands)
Financial assets:
Cash and due from banks	$	212,841	$	212,841	$	—	$	—
Securities available for sale		880,624		128,710		751,914		—
Loans held for sale		7,403		—		7,715		—
Loans, net of allowance for credit losses		6,493,465		—		—		6,532,980
Accrued interest receivable		24,466		24,466		—		—

Financial liabilities:
Interest-bearing deposits		4,662,438		—		—		4,664,018
Borrowings and subordinated debentures		280,463		—		149,761		137,296
Accrued interest payable		34,783		34,783		—		—