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

Off-Balance Sheet Commitments (Tables)

9 Months Ended

Sep. 30, 2021

The following table shows the distribution of undisbursed loan commitments as of the dates indicated:

	September 30,		December 31,
	2021		2020
	(in thousands)
Commitments to extend credit	$	536,149	$	453,900
Standby letters of credit		49,006		47,169
Commercial letters of credit		60,234		54,547
Total undisbursed loan commitments	$	645,389	$	555,616

Activity in the allowance for credit losses related to off-balance sheet items was as follows for the periods indicated:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2021		2020			2021		2020
	(in thousands)
Balance at beginning of period	$	3,643	$	6,347		$	2,792	$	2,397
Adjustment related to adoption of ASU 2016-13		—		—			—		(335	)
Adjusted balance		3,643		6,347			2,792		2,062
Provision expense (recovery) for credit losses		1,208		(658	)		2,059		3,627
Balance at end of period	$	4,851	$	5,689		$	4,851	$	5,689