Hanmi Financial Q3 2026 profit rises to $23.7M

Nine-month net income was $69.745 million, while deposits stood at $7,055.774 million at September 30, 2026.

Available on EDGAR 11/06/2026 - 02:11 PM EST Accepted by SEC EDGAR 11/06/2026 - 02:10 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

Hanmi Financial Corporation (HAFC) reported third-quarter net income of $23.683 million, compared with $22.061 million in the 2025 quarter; diluted earnings per share were $0.80 versus $0.73. For the first nine months of 2026, net income was $69.745 million, compared with $54.850 million a year earlier. Third-quarter net interest income before credit loss expense was $67.570 million versus $61.079 million, while credit loss expense was $4.530 million versus $2.145 million.

At September 30, 2026, assets totaled $8,043.788 million and deposits were $7,055.774 million, compared with $7,869.185 million and $6,677.650 million, respectively, at December 31, 2025. Net loans were $6,497.891 million, versus $6,493.465 million at year-end. Third-quarter total comprehensive income was $7.863 million, compared with $28.613 million a year earlier. During the first nine months, the company paid $25.187 million in cash dividends, repurchased $14.447 million of common stock, issued $54.094 million of subordinated debentures and redeemed $110.000 million.

1 point · 0 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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How the balance works

Positive

• Moderate pointNine-month net income was $69.745 million, versus $54.850 million in 2025.

Negative

• None.

Filing Explained

At September 30, 2026, outstanding shares were 29,496,736, versus 29,894,757 at December 31, 2025.

A Form 10-Q is an unaudited quarterly report; Hanmi reports that borrowings were zero at September 30, 2026, down from $150,000 thousand at December 31, 2025, while $76,147 thousand in subordinated debentures remained.

During the first nine months, the company repurchased 496,755 shares and issued 157,552 shares through equity-plan awards, net of forfeitures; shares outstanding fell from 29,894,757 at December 31, 2025 to 29,496,736 at September 30, 2026.

Cash and due from banks stood at $348,576 thousand at September 30, 2026, compared with $212,841 thousand at December 31, 2025.

Key Figures

Net income: $23.683 million Diluted earnings per share: $0.80 per share Net income: $69.745 million +5 more

8 metrics

Net income $23.683 million Three months ended September 30, 2026; $22.061 million in 2025

Diluted earnings per share $0.80 per share Three months ended September 30, 2026; $0.73 in 2025

Net income $69.745 million Nine months ended September 30, 2026; $54.850 million in 2025

Net interest income before credit loss expense $67.570 million Three months ended September 30, 2026; $61.079 million in 2025

Total assets $8,043.788 million September 30, 2026; $7,869.185 million at December 31, 2025

Total deposits $7,055.774 million September 30, 2026; $6,677.650 million at December 31, 2025

Net loans $6,497.891 million September 30, 2026; $6,493.465 million at December 31, 2025

Estimated fair value of available-for-sale securities $869.499 million September 30, 2026

Key Terms

net interest income before credit loss expense, allowance for credit losses, securities available for sale, other comprehensive income, +1 more

5 terms

net interest income before credit loss expense financial

"Net interest income before credit loss expense"

allowance for credit losses financial

"Loans, net of allowance for credit losses"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

securities available for sale financial

"Securities available for sale, at fair value"

Securities available for sale are investments—like bonds or shares—that a company owns but does not plan to hold until they mature or trade every day; they are kept with the intention that they may be sold when needed or when a good opportunity arises. For investors, these holdings matter because their market value changes can affect a company’s reported net worth and provide a source of cash or unexpected gains or losses, similar to having a reserve of items you can sell when prices are favorable.

other comprehensive income financial

"Other comprehensive income (loss), net of tax"

Other comprehensive income is a section of a company’s financial statements that records gains and losses not shown in the regular profit-and-loss line, such as paper gains or losses on certain investments, pension plan adjustments, and changes from converting foreign operations. These items don’t represent cash earned or spent today but change a company’s reported net worth, like value swings in things stored in a closet rather than money in your wallet, and help investors spot hidden strengths or risks to long-term financial health.

subordinated debentures financial

"Interest on subordinated debentures"

A subordinated debenture is a type of long-term loan a company issues that ranks below other debts when paying creditors, so holders are paid only after higher-priority lenders if the company defaults. It matters to investors because this lower repayment priority raises the risk of loss, which companies typically offset by offering higher interest, making it a trade-off between yield and safety—like standing later in line for a bigger tip.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were HAFC's third-quarter net income and diluted EPS?

For the three months ended September 30, 2026, net income was $23.683 million and diluted earnings per share were $0.80; the comparable 2025 figures were $22.061 million and $0.73.

How much was HAFC's net interest income after credit loss expense?

For the three months ended September 30, 2026, net interest income after credit loss expense was $63.040 million, compared with $58.934 million for the same 2025 period. Credit loss expense was $4.530 million, versus $2.145 million.

What was the fair value of HAFC's available-for-sale securities?

At September 30, 2026, available-for-sale securities had estimated fair value of $869.499 million and amortized cost of $957.828 million. The table showed gross unrealized losses of $88.383 million and gross unrealized gains of $0.054 million.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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 September 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 October 30, 2026, there were 29,486,335 outstanding shares of the Registrant’s Common Stock.

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

Three Months Ended September 30, 2026

Table of Contents

		Part I – Financial Information
Item 1.		Financial Statements		3
		Consolidated Balance Sheets at September 30, 2026 (unaudited) and December 31, 2025		3
		Consolidated Statements of Income for the three and nine months ended September 30, 2026 and 2025 (unaudited)		4
		Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2026 and 2025 (unaudited)		5
		Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2026 and 2025 (unaudited)		7
		Consolidated Statements of Cash Flows for the nine months ended September 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		45
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		66
Item 4.		Controls and Procedures		66
		Part II – Other Information
Item 1.		Legal Proceedings		67
Item 1A.		Risk Factors		67
Item 2.		Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities		67
Item 3.		Defaults Upon Senior Securities		67
Item 4.		Mine Safety Disclosures		67
Item 5.		Other Information		67
Item 6.		Exhibits		68
Signatures				69

2

Part I — Financial Information

Item 1. Financial Statements

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)

		September 30,				December 31,
		2026				2025
		(Unaudited)
Assets
Cash and due from banks		$	348,576			$	212,841
Securities available for sale, at fair value (amortized cost of $957,828 and $941,760 as of September 30, 2026 and December 31, 2025, respectively)			869,499				880,624
Loans held for sale, at the lower of cost or fair value			31,242				7,403
Loans, net of allowance for credit losses of $70,810 and $69,903 as of September 30, 2026 and December 31, 2025, respectively			6,497,891				6,493,465
Accrued interest receivable			25,404				24,466
Premises and equipment, net			20,380				20,378
Servicing assets			6,693				6,459
Goodwill			11,031				11,031
Federal Home Loan Bank (“FHLB”) stock, at cost			16,385				16,385
Income tax assets			56,781				40,467
Bank-owned life insurance			56,359				56,697
Prepaid expenses and other assets			103,547				98,969
Total assets		$	8,043,788			$	7,869,185
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing		$	2,146,060			$	2,015,212
Interest-bearing			4,909,714				4,662,438
Total deposits			7,055,774				6,677,650
Accrued interest payable			28,131				34,783
Borrowings			—				150,000
Subordinated debentures			76,147				130,463
Accrued expenses and other liabilities			75,427				79,903
Total liabilities			7,235,479				7,072,799
Stockholders’ equity:
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of September 30, 2026 and December 31, 2025			—				—
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 34,445,331 shares (29,496,736 shares outstanding) and 34,287,779 shares (29,894,757 shares outstanding) as of September 30, 2026 and December 31, 2025, respectively			34				34
Additional paid-in capital			597,236				594,667
Accumulated other comprehensive loss, net of tax benefit of $23,407 and tax benefit $17,822 as of September 30, 2026 and December 31, 2025, respectively			(62,372	)			(43,175	)
Retained earnings			438,893				394,335
Less treasury stock; 4,948,595 shares and 4,393,022 shares as of September 30, 2026 and December 31, 2025, respectively			(165,482	)			(149,475	)
Total stockholders’ equity			808,309				796,386
Total liabilities and stockholders’ equity		$	8,043,788			$	7,869,185

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

3

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(in thousands, except share and per share data)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Interest and dividend income:
Interest and fees on loans		$	97,977			$	95,691			$	286,651			$	279,168
Interest on securities			6,819				6,592				19,115				19,022
Dividends on FHLB stock			451				357				1,501				1,071
Interest on deposits in other banks			3,409				2,586				6,863				6,554
Total interest and dividend income			108,656				105,226				314,130				305,815
Interest expense:
Interest on deposits			39,271				42,244				113,783				124,727
Interest on borrowings			—				324				830				3,032
Interest on subordinated debentures			1,815				1,579				4,887				4,746
Total interest expense			41,086				44,147				119,500				132,505
Net interest income before credit loss expense			67,570				61,079				194,630				173,310
Credit loss expense			4,530				2,145				8,608				12,496
Net interest income after credit loss expense			63,040				58,934				186,022				160,814
Noninterest income:
Service charges on deposit accounts			2,080				2,160				6,309				6,546
Trade finance and other service charges and fees			1,892				1,551				5,295				4,409
Gain on sale of Small Business Administration (“SBA”) loans			2,284				1,857				5,705				6,018
Gain on sale of residential mortgage loans			279				1,156				1,121				1,331
Other operating income			2,495				3,156				7,487				7,372
Total noninterest income			9,030				9,880				25,917				25,676
Noninterest expense:
Salaries and employee benefits			23,334				22,163				68,074				65,204
Occupancy and equipment			4,529				4,507				13,326				13,301
Data processing			4,706				3,860				13,647				11,374
Professional fees			1,696				1,978				6,473				5,171
Supplies and communications			489				423				1,536				1,455
Advertising and promotion			728				712				2,096				2,094
Other operating expenses			4,367				3,714				12,104				10,090
Total noninterest expense			39,849				37,357				117,256				108,689
Income before tax			32,221				31,457				94,683				77,801
Income tax expense			8,538				9,396				24,938				22,951
Net income		$	23,683			$	22,061			$	69,745			$	54,850
Basic earnings per share		$	0.80			$	0.73			$	2.35			$	1.82
Diluted earnings per share		$	0.80			$	0.73			$	2.33			$	1.82
Weighted-average shares outstanding:
Basic			29,388,692				29,830,475				29,509,964				29,905,265
Diluted			29,569,858				29,880,865				29,690,052				29,955,366

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

4

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Net income		$	23,683			$	22,061			$	69,745			$	54,850
Other comprehensive income (loss), net of tax:
Unrealized gain (loss):
Unrealized holding gain (loss) on available for sale securities			(22,782	)			8,873				(27,328	)			31,121
Unrealized gain (loss) on cash flow hedges			901				(94	)			844				(139	)
Unrealized gain (loss)			(21,881	)			8,779				(26,484	)			30,982
Income tax benefit (expense) related to other comprehensive income items			5,961				(2,396	)			7,269				(8,735	)
Other comprehensive income (loss)			(15,920	)			6,383				(19,215	)			22,247
Reclassification adjustment for losses included in net income			137				241				55				734
Income tax benefit related to reclassification adjustment			(37	)			(72	)			(37	)			(217	)
Reclassification adjustment for (gains) losses included in net income, net of tax			100				169				18				517
Other comprehensive income (loss), net of tax			(15,820	)			6,552				(19,197	)			22,764
Total comprehensive income		$	7,863			$	28,613			$	50,548			$	77,614

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

5

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three Months Ended September 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 July 1, 2026		34,445,437				(4,795,131	)			29,650,306			$	34			$	596,303			$	(46,552	)		$	423,499			$	(160,604	)		$	812,680
Net income		—				—				—				—				—				—				23,683				—				23,683
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—				—				—				—				—				(16,476	)			—				—				(16,476	)
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—				—				—				—				—				656				—				—				656
Cash dividends paid (common stock, $0.28/share)		—				—				—				—				—				—				(8,289	)			—				(8,289	)
Repurchase of common stock		—				(151,048	)			(151,048	)			—				—				—				—				(4,801	)			(4,801	)
Issuance of awards pursuant to equity incentive plans, net of forfeitures		(106	)			—				(106	)			—				—				—				—				—				—
Share-based compensation expense		—				—				—				—				933				—				—				—				933
Shares surrendered to satisfy tax liability upon vesting of equity awards		—				(2,416	)			(2,416	)			—				—				—				—				(77	)			(77	)
Balance at September 30, 2026		34,445,331				(4,948,595	)			29,496,736			$	34			$	597,236			$	(62,372	)		$	438,893			$	(165,482	)		$	808,309
Balance at July 1, 2025		34,294,037				(4,117,469	)			30,176,568			$	34			$	592,825			$	(54,511	)		$	367,251			$	(142,765	)		$	762,834
Net income		—				—				—				—				—				—				22,061				—				22,061
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—				—				—				—				—				6,413				—				—				6,413
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—				—				—				—				—				139				—				—				139
Cash dividends paid (common stock, $0.27/share)		—				—				—				—				—				—				(8,129	)			—				(8,129	)
Repurchase of common stock		—				(199,698	)			(199,698	)			—				—				—				—				(4,683	)			(4,683	)
Issuance of awards pursuant to equity incentive plans, net of forfeitures		(381	)			—				(381	)			—				—				—				—				—				—
Share-based compensation expense		—				—				—				—				943				—				—				—				943
Shares surrendered to satisfy tax liability upon vesting of equity awards		—				(1,118	)			(1,118	)			—				—				—				—				(28	)			(28	)
Balance at September 30, 2025		34,293,656				(4,318,285	)			29,975,371			$	34			$	593,768			$	(47,959	)		$	381,183			$	(147,476	)		$	779,550

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

6

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Nine Months Ended September 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		—				—				—				—				—				—				69,745				—				69,745
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—				—				—				—				—				(19,751	)			—				—				(19,751	)
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—				—				—				—				—				554				—				—				554
Cash dividends paid (common stock, $0.84/share)		—				—				—				—				—				—				(25,187	)			—				(25,187	)
Repurchase of common stock		—				(496,755	)			(496,755	)			—				—				—				—				(14,447	)			(14,447	)
Stock options exercised		—				—				—				—				—				—				—				—				—
Issuance of awards pursuant to equity incentive plans, net of forfeitures		157,552				—				157,552				—				—				—				—				—				—
Share-based compensation expense		—				—				—				—				2,569				—				—				—				2,569
Shares surrendered to satisfy tax liability upon vesting of equity awards		—				(58,818	)			(58,818	)			—				—				—				—				(1,560	)			(1,560	)
Balance at September 30, 2026		34,445,331				(4,948,595	)			29,496,736			$	34			$	597,236			$	(62,372	)		$	438,893			$	(165,482	)		$	808,309
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		—				—				—				—				—				—				54,850				—				54,850
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—				—				—				—				—				22,305				—				—				22,305
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—				—				—				—				—				459				—				—				459
Cash dividends paid (common stock, $0.81/share)		—				—				—				—				—				—				(24,536	)			—				(24,536	)
Repurchase of common stock		—				(319,698	)			(319,698	)			—				—				—				—				(7,435	)			(7,435	)
Issuance of awards pursuant to equity incentive plans, net of forfeitures		142,192				—				142,192				—				—				—				—				—				—
Share-based compensation expense		—				—				—				—				2,699				—				—				—				2,699
Shares surrendered to satisfy tax liability upon vesting of equity awards		—				(43,122	)			(43,122	)			—				—				—				—				(966	)			(966	)
Balance at September 30, 2025		34,293,656				(4,318,285	)			29,975,371			$	34			$	593,768			$	(47,959	)		$	381,183			$	(147,476	)		$	779,550

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

7

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

		Nine Months Ended September 30,
		2026				2025
Cash flows from operating activities:
Net income		$	69,745			$	54,850
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			2,623				2,458
Amortization of servicing assets, net			1,734				1,873
Share-based compensation expense			2,569				2,699
Credit loss expense			8,608				12,496
Loss on sale of securities			135				—
Gain on sale of other real estate owned (“OREO”)			(850	)			—
Gain on sales of SBA loans			(5,705	)			(6,018	)
Gain on sale of residential mortgage loans			(1,121	)			(1,331	)
Origination of loans held for sale			(125,156	)			(98,133	)
Proceeds from sales of loans originated as held-for-sale			123,117				108,040
Recognition of debt issuance costs upon redemption of subordinated debt			1,127				—
Change in bank-owned life insurance			338				786
Change in prepaid expenses and other assets			(1,774	)			(4,122	)
Change in income tax assets			(9,046	)			(611	)
Change in accrued interest payable and other liabilities			(14,525	)			1,022
Net cash provided by operating activities			51,819				74,009
Cash flows from investing activities:
Purchases of securities available for sale			(279,832	)			(139,308	)
Proceeds from the maturity, call, and repayment of securities			217,199				169,533
Proceeds from sale of securities available for sale			44,546				—
Purchases of loans			(17,316	)			(47,624	)
Proceeds from sales of loans transferred to held-for-sale			50,108				79,758
Purchases of premises and equipment			(2,625	)			(1,392	)
Proceeds from disposition of premises and equipment			16				14
Proceeds from sale of other real estate owned			2,830				713
Change in loans, excluding purchases and sales			(62,034	)			(322,769	)
Net cash used in investing activities			(47,108	)			(261,075	)
Cash flows from financing activities:
Change in deposits			378,124				330,863
Change in open FHLB advances			—				(225,000	)
Proceeds from FHLB term advances			—				50,000
Repayments of FHLB term advances			(150,000	)			(25,000	)
Issuance of subordinated debentures			54,094				—
Redemption of subordinated debentures			(110,000	)			—
Cash paid for vested employee shares surrendered for tax liability			(1,560	)			(966	)
Repurchase of common stock			(14,447	)			(7,441	)
Cash dividends paid			(25,187	)			(24,536	)
Net cash provided by financing activities			131,024				97,920
Net increase (decrease) in cash and due from banks			135,735				(89,146	)
Cash and due from banks at beginning of year			212,841				304,800
Cash and due from banks at end of period		$	348,576			$	215,654
Supplemental disclosures of cash flow information:
Interest paid		$	126,152			$	133,110
Income taxes paid		$	31,994			$	19,269
Non-cash activities:
Transfer of loans to other real estate owned		$	1,084			$	—
Transfer of loans to loans held for sale		$	66,333			$	41,897
Income tax benefit (expense) related to other comprehensive income items		$	7,232			$	(8,952	)
Right-of-use asset obtained in exchange for lease liability		$	4,010			$	3,534

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

8

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 September 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 nine-month periods ended September 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.

9

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)
September 30, 2026
U.S. Treasury securities		$	226,273			$	—			$	(1,222	)		$	225,051
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential			384,273				8				(50,734	)			333,547
Mortgage-backed securities - commercial			78,566				—				(14,752	)			63,814
Collateralized mortgage obligations			159,907				46				(8,894	)			151,059
Other U.S. government agency obligations			34,567				—				(484	)			34,083
Total U.S. government agency and sponsored agency obligations			657,313				54				(74,864	)			582,503
Municipal bonds-tax exempt			74,242								(12,297	)			61,945
Total securities available for sale		$	957,828			$	54			$	(88,383	)		$	869,499
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
Other U.S. government agency obligations			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 September 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.

		September 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		$	150,885			$	150,221			$	159,050			$	158,399
Over one year through five years			128,761				126,730				65,994				64,919
Over five years through ten years			296,223				255,644				234,306				213,596
Over ten years			381,959				336,904				482,410				443,710
Total		$	957,828			$	869,499			$	941,760			$	880,624

10

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 September 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)
September 30, 2026
U.S. Treasury securities		$	(1,205	)		$	221,567				39			$	(17	)		$	3,484				1			$	(1,222	)		$	225,051				40
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential			(2,389	)			55,019				20				(48,345	)			275,194				115				(50,734	)			330,213				135
Mortgage-backed securities - commercial			(940	)			18,343				6				(13,812	)			45,471				14				(14,752	)			63,814				20
Collateralized mortgage obligations			(1,923	)			106,199				38				(6,971	)			38,652				21				(8,894	)			144,851				59
Other U.S. government agency obligations			(165	)			9,836				2				(319	)			24,247				5				(484	)			34,083				7
Total U.S. government agency and sponsored agency obligations			(5,417	)			189,397				66				(69,447	)			383,564				155				(74,864	)			572,961				221
Municipal bonds-tax exempt			—				—				—				(12,297	)			61,945				19				(12,297	)			61,945				19
Total		$	(6,622	)		$	410,964				105			$	(81,761	)		$	448,993				175			$	(88,383	)		$	859,957				280
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
Other U.S. government agency obligations			—				—				—				(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.

During the three months ended September 30, 2026, the Company sold $44.5 million of U.S. Treasury securities at a loss of $0.1 million. There were no other sales of securities during the nine months ended September 30, 2026. There were no sales of securities during the nine months ended September 30, 2025.

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

At September 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.

11

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:

		September 30, 2026				December 31, 2025
		(in thousands)
Real estate loans:
Commercial property
Retail		$	1,150,350			$	1,132,439
Hospitality			883,683				847,989
Office			483,763				503,268
Other (1)			1,526,670				1,532,667
Total commercial property loans			4,044,466				4,016,363
Construction			11,198				13,742
Residential (2)			1,001,824				1,049,872
Total real estate loans			5,057,488				5,079,977
Commercial and industrial loans			1,171,614				1,074,908
Equipment financing agreements			339,599				408,483
Total loans			6,568,701				6,563,368
Allowance for credit losses			(70,810	)			(69,903	)
Total loans, net of allowance for credit losses		$	6,497,891			$	6,493,465

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

(2)Includes $0.7 million and $1.0 million of home equity loans and lines and $5.0 million and $3.8 million of personal loans at September 30, 2026 and December 31, 2025, respectively.

Accrued interest receivable on loans was $20.8 million and $20.7 million at September 30, 2026 and December 31, 2025, respectively.

At September 30, 2026 and December 31, 2025, loans with carrying values of $2.30 billion and $2.40 billion, respectively, were pledged to secure advances from the FHLB, and loans with carrying values of $1.19 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 September 30, 2026
Balance at beginning of period		$	13,290			$	3,679			$	16,969
Originations and transfers			47,355				14,381				61,736
Sales			(35,056	)			(12,343	)			(47,399	)
Principal paydowns and amortization			(30	)			(1	)			(31	)
Valuation allowance			(33	)			—				(33	)
Balance at end of period		$	25,526			$	5,716			$	31,242
Three months ended September 30, 2025
Balance at beginning of period		$	45,412			$	4,199			$	49,611
Originations and transfers			13,796				17,624				31,420
Sales			(59,208	)			(15,305	)			(74,513	)
Principal paydowns and amortization			—				(6	)			(6	)
Balance at end of period		$	—			$	6,512			$	6,512

12

		Real Estate				Commercial and Industrial				Total
		(in thousands)
Nine months ended September 30, 2026
Balance at beginning of period		$	4,985			$	2,418			$	7,403
Originations and transfers			152,097				39,392				191,489
Sales			(130,724	)			(35,675	)			(166,399	)
Principal payoffs and amortization			(799	)			(419	)			(1,218	)
Valuation allowance			(33	)			—				(33	)
Balance at end of period		$	25,526			$	5,716			$	31,242
Nine months ended September 30, 2025
Balance at beginning of period		$	3,994			$	4,585			$	8,579
Originations and transfers			88,411				51,619				140,030
Sales			(92,403	)			(49,663	)			(142,066	)
Principal payoffs and amortization			(2	)			(29	)			(31	)
Balance at end of period		$	—			$	6,512			$	6,512

All loans sold during the nine months ended September 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 three and nine months ended September 30, 2025, we sold $25.9 million and $36.0 million, respectively, of residential mortgage loans from the held for investment portfolio.

Loan Purchases

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

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
		(in thousands)
Commercial real estate		$	—			$	—			$	—			$	15,114
Commercial and industrial			—				—				268				9,203
Residential real estate			4,747				2,992				17,048				23,307
Total		$	4,747			$	2,992			$	17,316			$	47,624

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 September 30, 2026
Balance at beginning of period		$	49,127			$	8,680			$	12,668			$	70,475
Charge-offs			(3,412	)			(181	)			(1,431	)			(5,024	)
Recoveries			27				30				623				680
Credit loss expense (recovery)			5,906				(412	)			(815	)			4,679
Ending balance		$	51,648			$	8,117			$	11,045			$	70,810
Three months ended September 30, 2025
Balance at beginning of period		$	48,021			$	6,935			$	11,800			$	66,756
Charge-offs			(119	)			(124	)			(2,382	)			(2,625	)
Recoveries			52				2,229				826				3,107
Credit loss expense (recovery)			3,519				(1,738	)			762				2,543
Ending balance		$	51,473			$	7,302			$	11,006			$	69,781

13

		Real Estate				Commercial and Industrial				Equipment Financing Agreements				Total
		(in thousands)
Nine months ended September 30, 2026
Balance at beginning of period		$	51,670			$	7,792			$	10,441			$	69,903
Charge-offs			(3,571	)			(584	)			(5,933	)			(10,088	)
Recoveries			111				106				1,665				1,882
Credit loss expense			3,438				803				4,872				9,113
Ending balance		$	51,648			$	8,117			$	11,045			$	70,810
Nine months ended September 30, 2025
Balance at beginning of period		$	45,099			$	10,006			$	15,042			$	70,147
Charge-offs			(8,904	)			(1,157	)			(8,131	)			(18,192	)
Recoveries			670				2,463				2,230				5,363
Credit loss expense (recovery)			14,608				(4,010	)			1,865				12,463
Ending balance		$	51,473			$	7,302			$	11,006			$	69,781

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:

		September 30, 2026																December 31, 2025
		Allowance								Loans								Allowance								Loans
		Amount				%				Amount				%				Amount				%				Amount				%
		(dollars in thousands)
Real estate loans:
Commercial property
Retail		$	8,424				11.9	%		$	1,150,350				17.5	%		$	9,999				14.3	%		$	1,132,439				17.3	%
Hospitality			7,086				10.0				883,683				13.5				8,737				12.5				847,989				12.9
Office			4,560				6.5				483,763				7.4				5,700				8.2				503,268				7.7
Other			19,834				28.1				1,526,670				23.2				14,078				20.1				1,532,667				23.4
Total commercial property loans			39,904				56.5				4,044,466				61.6				38,514				55.1				4,016,363				61.3
Construction			132				0.1				11,198				0.2				208				0.3				13,742				0.2
Residential			11,612				16.3				1,001,824				15.2				12,948				18.5				1,049,872				16.0
Total real estate loans			51,648				72.9				5,057,488				77.0				51,670				73.9				5,079,977				77.5
Commercial and industrial loans			8,117				11.5				1,171,614				17.8				7,792				11.1				1,074,908				16.4
Equipment financing agreements			11,045				15.6				339,599				5.2				10,441				15.0				408,483				6.1
Total		$	70,810				100.0	%		$	6,568,701				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:

		September 30, 2026				December 31, 2025
		(in thousands)
Real estate loans:
Commercial property
Retail		$	421			$	596
Hospitality			—				—
Office			337				10,159
Other			52,441				671
Total commercial property loans			53,199				11,426
Residential			2,967				1,113
Total real estate loans			56,166				12,539
Commercial and industrial loans			76				—
Total		$	56,242			$	12,539

14

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.

15

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)
September 30, 2026
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch		$	1,052,565			$	773,493			$	346,220			$	333,810			$	726,724			$	643,852			$	47,523			$	3,924,187
Special Mention			808				54,237				—				519				—				426				—				55,990
Classified			3,102				571				—				—				56,965				3,651				—				64,289
Total commercial property			1,056,475				828,301				346,220				334,329				783,689				647,929				47,523				4,044,466
YTD gross charge-offs			—				—				—				3,196				41				91				—				3,328
YTD net charge-offs (recoveries)			—				(7	)			—				3,196				41				(11	)			—				3,219
Construction
Risk Rating
Pass / Pass-Watch			—				7,199				3,999				—				—				—				—				11,198
Special Mention			—				—				—				—				—				—				—				—
Classified			—				—				—				—				—				—				—				—
Total construction			—				7,199				3,999				—				—				—				—				11,198
YTD gross charge-offs			—				—				—				—				—				—				—				—
YTD net charge-offs (recoveries)			—				—				—				—				—				—				—				—
Residential
Risk Rating
Pass / Pass-Watch			140,517				181,611				57,661				110,774				301,146				200,168				5,166				997,043
Special Mention			—				—				—				—				—				—				—				—
Classified			—				—				1,167				321				2,882				411				—				4,781
Total residential			140,517				181,611				58,828				111,095				304,028				200,579				5,166				1,001,824
YTD gross charge-offs			—				—				—				—				243				—				—				243
YTD net charge-offs (recoveries)			—				—				—				—				243				(2	)			—				241
Total real estate loans
Risk Rating
Pass / Pass-Watch			1,193,082				962,303				407,880				444,584				1,027,870				844,020				52,689				4,932,428
Special Mention			808				54,237				—				519				—				426				—				55,990
Classified			3,102				571				1,167				321				59,847				4,062				—				69,070
Total real estate loans			1,196,992				1,017,111				409,047				445,424				1,087,717				848,508				52,689				5,057,488
YTD gross charge-offs			—				—				—				3,196				284				91				—				3,571
YTD net charge-offs (recoveries)			—				(7	)			—				3,196				284				(13	)			—				3,460
Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch			405,714				199,835				127,254				32,953				27,932				20,861				351,246				1,165,795
Special Mention			231				—				—				—				—				—				—				231
Classified			5,136				125				—				—				115				212				—				5,588
Total commercial and industrial loans			411,081				199,960				127,254				32,953				28,047				21,073				351,246				1,171,614
YTD gross charge-offs			—				56				181				115				154				78				—				584
YTD net charge-offs (recoveries)			—				56				181				114				117				12				(2	)			478
Equipment financing agreements:
Risk Rating
Pass / Pass-Watch			84,971				104,642				58,966				51,795				30,690				4,997				—				336,061
Special Mention			—				—				—				—				—				—				—				—
Classified			—				798				636				597				1,243				264				—				3,538
Total equipment financing agreements			84,971				105,440				59,602				52,392				31,933				5,261				—				339,599
YTD gross charge-offs			—				1,660				1,042				1,264				1,480				487				—				5,933
YTD net charge-offs (recoveries)			—				1,658				982				1,019				966				(357	)			—				4,268
Total loans:
Risk Rating
Pass / Pass-Watch			1,683,767				1,266,780				594,100				529,332				1,086,492				869,878				403,935				6,434,284
Special Mention			1,039				54,237				—				519				—				426				—				56,221
Classified			8,238				1,494				1,803				918				61,205				4,538				—				78,196
Total loans		$	1,693,044			$	1,322,511			$	595,903			$	530,769			$	1,147,697			$	874,842			$	403,935			$	6,568,701
YTD gross charge-offs			—				1,716				1,223				4,575				1,918				656				—				10,088
YTD net charge-offs (recoveries)			—				1,707				1,163				4,329				1,367				(358	)			(2	)			8,206

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

16

		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			$	808,320			$	735,411			$	285,598			$	54,824			$	3,940,367
Special Mention			55,029				—				—				148				1,371				298				—				56,846
Classified			3,846				—				—				11,235				—				4,069				—				19,150
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				1,134,446				867,921				382,674				58,978				5,000,205
Special Mention			55,029				—				—				2,565				1,371				298				250				59,513
Classified			3,846				—				—				12,348				—				4,065				—				20,259
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				1,244,285				906,881				401,134				404,953				6,466,364
Special Mention			55,029				—				—				14,165				1,371				298				250				71,113
Classified			4,352				726				1,202				14,458				583				4,218				352				25,891
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.

17

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)
September 30, 2026
Real estate loans:
Commercial property
Payment performance
Performing		$	1,056,475			$	827,730			$	346,220			$	334,329			$	783,256			$	646,655			$	47,523			$	4,042,188
Nonperforming			—				571				—				—				433				1,274								2,278
Total commercial property			1,056,475				828,301				346,220				334,329				783,689				647,929				47,523				4,044,466
YTD gross charge-offs			—				—				—				3,196				41				91				—				3,328
YTD net charge-offs (recoveries)			—				(7	)			—				3,196				41				(11	)			—				3,219
Construction
Payment performance
Performing			—				7,199				3,999				—				—				—				—				11,198
Nonperforming			—				—				—				—				—				—				—				—
Total construction			—				7,199				3,999				—				—				—				—				11,198
YTD gross charge-offs			—				—				—				—				—				—				—				—
YTD net charge-offs (recoveries)			—				—				—				—				—				—				—				—
Residential
Payment performance
Performing			140,517				181,611				57,661				110,774				302,549				200,583				5,166				998,861
Nonperforming			—				—				1,167				321				1,479				(4	)			—				2,963
Total residential			140,517				181,611				58,828				111,095				304,028				200,579				5,166				1,001,824
YTD gross charge-offs			—				—				—				—				243				—				—				243
YTD net charge-offs (recoveries)			—				—				—				—				243				(2	)			—				241
Total real estate loans
Payment performance
Performing			1,196,992				1,016,540				407,880				445,103				1,085,805				847,238				52,689				5,052,247
Nonperforming			—				571				1,167				321				1,912				1,270				—				5,241
Total real estate loans			1,196,992				1,017,111				409,047				445,424				1,087,717				848,508				52,689				5,057,488
YTD gross charge-offs			—				—				—				3,196				284				91				—				3,571
YTD net charge-offs (recoveries)			—				(7	)			—				3,196				284				(13	)			—				3,460
Commercial and industrial loans:
Payment performance
Performing			411,081				199,960				127,254				32,953				28,047				20,909				351,246				1,171,450
Nonperforming			—				—				—				—				—				164				—				164
Total commercial and industrial loans			411,081				199,960				127,254				32,953				28,047				21,073				351,246				1,171,614
YTD gross charge-offs			—				56				181				115				154				78				—				584
YTD net charge-offs (recoveries)			—				56				181				114				117				12				(2	)			478
Equipment financing agreements:
Payment performance
Performing			84,971				104,643				58,966				51,795				30,690				4,997				—				336,062
Nonperforming			—				797				636				597				1,243				264				—				3,537
Total equipment financing agreements			84,971				105,440				59,602				52,392				31,933				5,261				—				339,599
YTD gross charge-offs			—				1,660				1,042				1,264				1,480				487				—				5,933
YTD net charge-offs (recoveries)			—				1,658				982				1,019				966				(357	)			—				4,268
Total loans:
Payment performance
Performing			1,693,044				1,321,143				594,100				529,851				1,144,542				873,144				403,935				6,559,759
Nonperforming(2)			—				1,368				1,803				918				3,155				1,698				—				8,942
Total loans		$	1,693,044			$	1,322,511			$	595,903			$	530,769			$	1,147,697			$	874,842			$	403,935			$	6,568,701
YTD gross charge-offs			—				1,716				1,223				4,575				1,918				656				—				10,088
YTD net charge-offs (recoveries)			—				1,707				1,163				4,329				1,367				(358	)			(2	)			8,206

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

(2)Excludes an $18.0 million nonperforming commercial real estate loan held for sale as of September 30, 2026.

18

		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
Payment performance
Performing		$	1,240,037			$	402,354			$	472,027			$	809,391			$	736,782			$	289,102			$	54,824			$	4,004,517
Nonperforming			671				—				—				10,312				—				863				—				11,846
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
Payment performance
Performing			9,745				3,997				—				—				—				—				—				13,742
Nonperforming			—				—				—				—				—				—				—				—
Total construction			9,745				3,997				—				—				—				—				—				13,742
YTD gross charge-offs			—				—				—				—				—				—				—				—
YTD net charge-offs (recoveries)			—				—				—				—				—				—				—				—
Residential
Payment performance
Performing			258,847				84,457				142,926				328,543				132,510				97,076				4,404				1,048,763
Nonperforming			—				—				—				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
Payment performance
Performing			1,508,629				490,808				614,953				1,137,934				869,292				386,178				59,228				5,067,022
Nonperforming			671				—				—				11,425				—				859				—				12,955
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:
Payment performance
Performing			426,520				168,307				40,485				56,499				19,772				16,952				346,327				1,074,862
Nonperforming			—				—				—				46				—				—				—				46
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:
Payment performance
Performing			144,142				87,819				85,652				65,042				19,188				1,529				—				403,372
Nonperforming			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:
Payment performance
Performing			2,079,291				746,934				741,090				1,259,475				908,252				404,659				405,555				6,545,256
Nonperforming			1,177				726				1,202				13,433				583				991				—				18,112
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.

19

The following is an aging analysis of loans, including loans on nonaccrual status, disaggregated by loan class, as of:

		30-59 Days Past Due				60-89 Days Past Due				90 Days or More Past Due				Total Past Due				Current				Total
		(in thousands)
September 30, 2026
Real estate loans:
Commercial property
Retail		$	2,644			$	708			$	421			$	3,773			$	1,146,577			$	1,150,350
Hospitality			272				—				—				272				883,411				883,683
Office			—				—				337				337				483,426				483,763
Other			—				264				1,084				1,348				1,525,322				1,526,670
Total commercial property loans			2,916				972				1,842				5,730				4,038,736				4,044,466
Construction			—				—				—				—				11,198				11,198
Residential			3,906				1,513				2,963				8,382				993,442				1,001,824
Total real estate loans			6,822				2,485				4,805				14,112				5,043,376				5,057,488
Commercial and industrial loans			137				88				76				301				1,171,313				1,171,614
Equipment financing agreements			3,604				1,042				1,289				5,935				333,664				339,599
Total loans		$	10,563			$	3,615			$	6,170			$	20,348			$	6,548,353			$	6,568,701
December 31, 2025
Real estate loans:
Commercial property
Retail		$	2,002			$	590			$	154			$	2,746			$	1,129,693			$	1,132,439
Hospitality			3,135				—				—				3,135				844,854				847,989
Office			—				—				10,159				10,159				493,109				503,268
Other			325				657				—				982				1,531,685				1,532,667
Total commercial property loans			5,462				1,247				10,313				17,022				3,999,341				4,016,363
Construction			—				—				—				—				13,742				13,742
Residential			4,311				1,259				1,109				6,679				1,043,193				1,049,872
Total real estate loans			9,773				2,506				11,422				23,701				5,056,276				5,079,977
Commercial and industrial loans			788				—				—				788				1,074,120				1,074,908
Equipment financing agreements			4,604				1,788				2,956				9,348				399,135				408,483
Total loans		$	15,165			$	4,294			$	14,378			$	33,837			$	6,529,531			$	6,563,368

20

Nonaccrual Loans and Nonperforming Assets

The following tables represent the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of:

		September 30, 2026
		Nonaccrual Loans With No Allowance for Credit Losses				Nonaccrual Loans With Allowance for Credit Losses				Loans Past Due 90 Days Still Accruing				Total Nonperforming Loans(1)
		(in thousands)
Real estate loans:
Commercial property
Retail		$	421			$	447			$	—			$	868
Hospitality			—				42				—				42
Office			337				—				—				337
Other			1,031				—				—				1,031
Total commercial property loans			1,789				489				—				2,278
Construction			—				—				—				—
Residential			2,963				—				—				2,963
Total real estate loans			4,752				489				—				5,241
Commercial and industrial loans			—				164				—				164
Equipment financing agreements			203				3,334				—				3,537
Total		$	4,955			$	3,987			$	—			$	8,942
		December 31, 2025
		Nonaccrual Loans With No Allowance for Credit Losses				Nonaccrual Loans With Allowance for Credit Losses				Loans Past Due 90 Days Still Accruing				Total Nonperforming Loans
		(in thousands)
Real estate loans:
Commercial property
Retail		$	589			$	376			$	—			$	965
Hospitality			(39	)			83				—				44
Office			10,159				—				—				10,159
Other			671				7				—				678
Total commercial property loans			11,380				466				—				11,846
Construction			—				—				—				—
Residential			1,109				—				—				1,109
Total real estate loans			12,489				466				—				12,955
Commercial and industrial loans			—				46				—				46
Equipment financing agreements			(6	)			5,117				—				5,111
Total		$	12,483			$	5,629			$	—			$	18,112
(1) Excludes an $18.0 million nonperforming commercial real estate loan held for sale as of September 30, 2026.

The Company recognized less than ten thousand dollars of interest income on nonaccrual loans for both of the three month periods ended September 30, 2026 and 2025. The Company recognized less than ten thousand dollars of interest income on nonaccrual loans for the nine months ended September 30, 2026 and recognized $370,000 of interest income on nonaccrual loans for the nine months ended September 30, 2025.

21

The following table details nonperforming assets as of the dates indicated:

		September 30, 2026				December 31, 2025
		(in thousands)
Nonaccrual loans		$	8,942			$	18,112
Loans 90 days or more past due and still accruing			—				—
Total nonperforming loans(1)			8,942				18,112
Other real estate owned (“OREO”)			1,084				1,980
Total nonperforming assets(2)		$	10,026			$	20,092
(1) Excludes an $18.0 million nonperforming loan held for sale as of September 30, 2026.
(2) Excludes repossessed personal property of $0.3 million and $0.6 million as of September 30, 2026 and December 31, 2025, respectively.

As of September 30, 2026, OREO consisted of one property with a carrying value of $1.1 million. As of December 31, 2025, OREO consisted of two properties with combined carrying values of $2.0 million. OREO is included in prepaid expenses and other assets in the accompanying consolidated balance sheets.

Loan Modifications

The following table presents the amortized cost of loans that were modified to borrowers experiencing financial difficulty during the period indicated:

		Interest Only/Principal Deferment
		Amortized Cost Basis				% of Total Class of Loans				Financial Effect
		(in thousands)
Nine months ended September 30, 2026
Commercial and industrial loans		$	4,998				0.4	%		One loan with 12-month interest only modification

The modified loan above was current at September 30, 2026. The Company has not committed to lend any additional amounts to the borrower included in the table above as of September 30, 2026. During the nine months ended September 30, 2026 and 2025, there were no payment defaults on loans that were modified within the preceding 12 months.

No loans were modified to borrowers experiencing financial difficulty during the three months ended September 30, 2026 or during the nine months ended September 30, 2025.

Note 4 — Servicing Assets

The activity in servicing assets was as follows for the periods indicated:

		Three Months Ended September 30,
		2026				2025
		(in thousands)
Balance at beginning of period		$	6,419			$	6,420
Addition related to sale of loans			856				565
Amortization			(582	)			(501	)
Balance at end of period		$	6,693			$	6,484

		Nine Months Ended September 30,
		2026				2025
		(in thousands)
Balance at beginning of period		$	6,459			$	6,457
Addition related to sale of loans			1,968				1,900
Amortization			(1,734	)			(1,873	)
Balance at end of period		$	6,693			$	6,484

22

At September 30, 2026 and December 31, 2025, we serviced loans sold by the Bank to unaffiliated parties of $611.5 million and $615.9 million, respectively. These loans are maintained off-balance sheet and are not included in loans, net of allowance for credit losses, on the consolidated balance sheets. At September 30, 2026 and December 31, 2025, all loans serviced were SBA loans, except for $35.8 million and $62.5 million, respectively, of residential mortgage loans.

The Company recorded servicing fee income of $1.4 million and $1.3 million for the three months ended September 30, 2026 and 2025, respectively and $2.8 million and $2.4 million for the nine months ended September 30, 2026 and 2025, respectively. Servicing fee income, net of amortization of servicing assets, is included in other operating income in the consolidated statements of income. Amortization expense was $0.6 million and $0.5 million for the three months ended September 30, 2026 and 2025, respectively and $1.7 million and $1.9 million for the nine months ended September 30, 2026 and 2025, respectively.

The fair value of servicing rights was $9.4 million at September 30, 2026, which was determined using discount rates ranging from 11.0% to 20.5% and prepayment speeds ranging from 14.0% to 29.4%, depending on the stratification of the specific right. The fair value of servicing rights was $8.5 million at December 31, 2025, which was determined using discount rates ranging from 9.7% to 18.9% and prepayment speeds ranging from 20.2% to 28.0%, depending on the stratification of the specific right.

Note 5 — Income Taxes

The Company’s income tax expense was $8.5 million and $9.4 million, representing effective tax rates of 26.5% and 29.9% for the three months ended September 30, 2026 and 2025, respectively. The Company’s income tax expense was $24.9 million and $23.0 million, representing effective tax rates of 26.3% and 29.5% for the nine months ended September 30, 2026 and 2025, respectively.

Management concluded that as of both September 30, 2026 and December 31, 2025, a valuation allowance of $1.5 million was appropriate against certain state net operating loss carry forwards. For all other deferred tax assets, management believed it was more likely than not that these deferred tax assets will be realized principally through future taxable income and reversal of existing taxable temporary differences. Net deferred tax assets were $37.2 million and $37.4 million as of September 30, 2026 and December 31, 2025, respectively.

As of September 30, 2026, the Company was subject to examination by federal and various state tax authorities for the years ended December 31, 2021 through 2024. During the nine months ended September 30, 2026, there were no material changes to the Company’s uncertain tax positions. The Company does not expect its unrecognized tax positions to change significantly over the next twelve months.

23

Note 6 — Goodwill

The Company had goodwill with a carrying amount of $11.0 million at September 30, 2026 and December 31, 2025. The Company performed an impairment analysis in the third quarter of 2026 and determined there was no impairment as of September 30, 2026. No triggering event occurred as of, or subsequent to September 30, 2026, that would require a reassessment of goodwill.

Note 7 — Deposits

The scheduled maturities of time deposits are as follows for the periods indicated:

		Time Deposits More Than $250,000				Other Time Deposits				Total
		(in thousands)
At September 30, 2026
2026		$	522,758			$	523,159			$	1,045,917
2027			725,650				841,858				1,567,508
2028			—				17,362				17,362
2029			—				527				527
2030 and thereafter			269				556				825
Total		$	1,248,677			$	1,383,462			$	2,632,139
At December 31, 2025
2026		$	1,136,877			$	1,285,988			$	2,422,865
2027			390				62,900				63,290
2028			—				16,473				16,473
2029			—				183				183
2030 and thereafter			269				341				610
Total		$	1,137,536			$	1,365,885			$	2,503,421

Included in time deposits more than $250,000 were State of California time deposits of $181.3 million and $150.8 million at September 30, 2026 and December 31, 2025, respectively. Included in other time deposits were brokered deposits of $86.9 million and $88.5 million at September 30, 2026 and December 31, 2025, respectively.

Accrued interest payable on deposits was $28.1 million and $34.8 million at September 30, 2026 and December 31, 2025, respectively. Total deposits reclassified to loans due to overdrafts at September 30, 2026 and December 31, 2025 were $1.6 million and $2.4 million, respectively.

Note 8 — Borrowings and Subordinated Debentures

Borrowings consisted of FHLB advances, which represent collateralized obligations with the FHLB. FHLB advances allow for open basis (no maturity) borrowing or term borrowing. Borrowing terms can be overnight or for finite periods of time. The following is a summary of contractual maturities of FHLB advances:

		September 30, 2026								December 31, 2025
		Outstanding Balance				Weighted Average Rate				Outstanding Balance				Weighted Average Rate
		(dollars in thousands)
Open advances		$	—				—	%		$	—				—	%
Advances due within 12 months			—				—				150,000				4.02
Advances due over 12 months through 24 months			—				—				—				—
Outstanding advances		$	—				—	%		$	150,000				4.02	%

24

The following is financial data pertaining to FHLB advances:

		September 30, 2026				December 31, 2025
		(dollars in thousands)
Weighted-average interest rate at end of period			0.00	%			4.02	%
Weighted-average interest rate during the period1			3.96	%			4.52	%
Average balance of FHLB advances1		$	27,747			$	82,390
Maximum amount outstanding at any month-end		$	—			$	150,000

(1)During the nine months ended September 30, 2026 and twelve months ended December 31, 2025

We had loans pledged to the FHLB as collateral with carrying values of $2.30 billion and $2.40 billion as of September 30, 2026 and December 31, 2025, respectively. The total borrowing capacity available from pledged collateral was $1.70 billion and $1.76 billion at September 30, 2026 and December 31, 2025, respectively. The remaining available borrowing capacity from pledged collateral was $1.52 billion and $1.46 billion at September 30, 2026 and December 31, 2025, respectively. As of September 30, 2026, borrowing capacity was reduced by $180.0 million in FHLB letters of credit, which were collateral for public fund deposits from the State of California. As of December 31, 2025, the borrowing capacity reduction was $150.0 million for the same purpose.

We also had loans pledged as collateral to the Federal Reserve Bank of San Francisco Discount Window with carrying values of $1.19 billion and $528.1 million as of September 30, 2026 and December 31, 2025, respectively. The borrowing capacity available through the Discount Window based on pledged loans was $833.5 million and $424.5 million as of September 30, 2026 and December 31, 2025, respectively. There was no balance outstanding as of September 30, 2026 or December 31, 2025.

There was no interest expense on FHLB advances for the three months ended September 30, 2026. There was $0.3 million of interest expense on FHLB advances for the three months ended September 30, 2025. Interest expense on FHLB advances for the nine months ended September 30, 2026 and 2025 was $0.8 million and $3.0 million, respectively.

On July 30, 2026, the Company issued $55.0 million of 6.50% Fixed-to-Floating Subordinated Notes (“2036 Notes”) with a maturity date of July 31, 2036. The 2036 Notes have an initial fixed interest rate of 6.50% per annum, payable semiannually in arrears on January 31 and July 31 of each year, up to but excluding July 31, 2031. From July 31, 2031 and thereafter, the 2036 Notes will bear interest at a floating rate per annum equal to the three-month SOFR plus 234 basis points, payable quarterly in arrears on January 31, April 30, July 31, and October 31 of each year. If the then-current three-month SOFR is less than zero, the three-month SOFR will be deemed to be zero. Debt issuance costs of $0.9 million are being amortized through the 2036 Notes’ maturity date. At September 30, 2026, the balance of the 2036 Notes included in the Company’s consolidated balance sheets, net of issuance costs, was $54.1 million.

On September 1, 2026, the Company redeemed all $110.0 million of its Fixed-to-Floating Subordinated Notes (“2031 Notes”), which were originally issued on August 20, 2021 with a maturity date of September 1, 2031. The 2031 Notes had an initial fixed interest rate of 3.75% per annum, payable semiannually in arrears on March 1 and September 1 of each year, up to but excluding September 1, 2026. From and including September 1, 2026 and thereafter, the 2031 Notes would have borne interest at a floating rate per annum equal to the three-month SOFR plus 310 basis points, payable quarterly in arrears. This redemption resulted in the recognition of the unamortized debt issuance costs of $1.1 million, which is included in other operating expenses on the consolidated statements of income. Prior to the redemption, debt issuance costs were being amortized through the 2031 Notes’ maturity date. At December 31, 2025, the balance of the 2031 Notes included in the Company’s consolidated balance sheets, net of issuance costs, was $108.7 million.

The Company assumed Junior Subordinated Deferrable Interest Debentures (“Subordinated Debentures”) as a result of an acquisition in 2014 with an unpaid principal balance of $26.8 million and an estimated fair value of $18.5 million. The $8.3 million discount is being amortized to interest expense through the debentures’ maturity date of March 15, 2036. A trust was formed in 2005, which issued $26.0 million of Trust Preferred Securities (“TPS”) at a 6.26% fixed rate for the first five years and a variable rate of three-month LIBOR plus 140 basis points thereafter and invested the proceeds in the Subordinated Debentures. Beginning September 15, 2023, the variable rate on the TPS changed to three-month SOFR plus 166 basis points, representing the credit spread of 140 basis points and a 26 basis point adjustment to convert three-month LIBOR to three-month SOFR. On September 15, 2026, the Company purchased an interest rate cap to hedge the interest rate risk on the Subordinated Debentures. See Note 15 - Derivatives and Hedging Activities for details.

25

The rate on the TPS at September 30, 2026 was 5.56%. The Company may redeem the Subordinated Debentures at an earlier date if certain conditions are met. The TPS will be subject to mandatory redemption if the Subordinated Debentures are repaid by the Company. Interest is payable quarterly, and the Company has the option to defer interest payments on the Subordinated Debentures from time to time for a period not to exceed five consecutive years. At September 30, 2026 and December 31, 2025, the balance of Subordinated Debentures, net of discount of $4.0 million and $4.3 million, was $22.8 million and $22.5 million, respectively. These amounts do not reflect the consolidation of Hanmi Financial Corporation’s $0.8 million investment in the trust that issued the TPS. On a consolidated basis, the balance of Subordinated Debentures, net of discount, was $22.0 million and $21.7 million at September 30, 2026 and December 31, 2025, respectively. Amortization of the discount was $108,000 and $104,000 for the three months ended September 30, 2026 and 2025, respectively, and $316,000 and $328,000 for the nine months ended September 30, 2026 and 2025, respectively.

Note 9 — Earnings Per Share

Earnings per share (“EPS”) is calculated on both a basic and a diluted basis. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted from the issuance of common stock that then shared in earnings. Both basic and diluted EPS exclude common shares in treasury. For diluted EPS, the weighted-average number of common shares outstanding was diluted only by unvested performance stock units (“PSUs”) under the treasury method.

Unvested restricted stock awards contain rights to non-forfeitable dividends and are therefore considered participating securities prior to vesting. As a result, they have been included in the earnings allocation in computing basic and diluted EPS under the two-class method.

The following table is a reconciliation of the components used to derive basic and diluted EPS for the periods indicated:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
		(dollars in thousands, except per share and unit amounts)
Basic EPS
Net income		$	23,683			$	22,061			$	69,745			$	54,850
Less: income allocated to unvested restricted stock			164				176				510				450
Income allocated to common shares		$	23,519			$	21,885			$	69,235			$	54,400
Weighted-average shares for basic EPS			29,388,692				29,830,475				29,509,964				29,905,265
Basic EPS (1)		$	0.80			$	0.73			$	2.35			$	1.82
Effect of dilutive PSUs			181,166				50,390				180,088				50,101
Diluted EPS
Income allocated to common shares		$	23,519			$	21,885			$	69,235			$	54,400
Weighted-average shares for diluted EPS			29,569,858				29,880,865				29,690,052				29,955,366
Diluted EPS (1)		$	0.80			$	0.73			$	2.33			$	1.82

(1)Per share amounts may not be able to be recalculated using net income and weighted-average shares presented above due to rounding.

There were no options outstanding during the nine months ended September 30, 2026. On a weighted-average basis, options to purchase 2,000 shares of common stock were excluded from the calculation of diluted earnings per share for the nine months ended September 30, 2025 because their effect would have been anti-dilutive. Options with an exercise price greater than the average market price of the common shares are considered anti-dilutive. There were no anti-dilutive unvested PSUs outstanding for the nine months ended September 30, 2026 or 2025.

During the nine months ended September 30, 2026, 57,754 PSUs were awarded to executive officers from the 2021 Equity Compensation Plan, with a fair value of $1.5 million on the grant date of March 13, 2026. These units have a three-year cliff vesting period and include dividend equivalent rights. During the nine months ended September 30, 2025, 53,509 PSUs were awarded to executive officers from the 2021 Equity Compensation Plan, with a fair value of $1.2 million on the grant date of March 26, 2025. These units also have a three-year cliff vesting period and include dividend equivalent rights. Total PSUs outstanding as of September 30, 2026 were 197,417 with an aggregate grant fair value of $3.8 million. Total PSUs outstanding as of September 30, 2025 were 191,804 with an aggregate grant fair value of $3.5 million.

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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 September 30, 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 6.30% and 6.25% and the Company’s capital conservation buffer was 6.43% and 6.37% as of September 30, 2026 and December 31, 2025, respectively.

The capital ratios of Hanmi Financial and the Bank as of September 30, 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)
September 30, 2026
Total capital (to risk-weighted assets):
Hanmi Financial		$	997,427				14.43	%		$	552,920				8.00	%		N/A				N/A
Hanmi Bank		$	988,393				14.30	%		$	552,950				8.00	%		$	691,187				10.00	%
Tier 1 capital (to risk-weighted assets):
Hanmi Financial		$	869,774				12.58	%		$	414,690				6.00	%		N/A				N/A
Hanmi Bank		$	915,740				13.25	%		$	414,712				6.00	%		$	552,950				8.00	%
Common equity Tier 1 capital (to risk-weighted assets)
Hanmi Financial		$	847,732				12.27	%		$	311,017				4.50	%		N/A				N/A
Hanmi Bank		$	915,740				13.25	%		$	311,034				4.50	%		$	449,272				6.50	%
Tier 1 capital (to average assets):
Hanmi Financial		$	869,774				10.82	%		$	321,431				4.00	%		N/A				N/A
Hanmi Bank		$	915,740				11.43	%		$	320,381				4.00	%		$	400,476				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	%

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Note 11 — Fair Value Measurements

Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are defined as follows:

•Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

•Level 2 - Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.

•Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, fair value is used on a non-recurring basis to evaluate assets or liabilities for impairment or for disclosure purposes.

We record securities available for sale at fair value on a recurring basis. Certain other assets, such as loans held for sale, impaired loans, and OREO are recorded at fair value on a non-recurring basis. Non-recurring fair value measurements typically involve assets that are periodically evaluated for impairment and for which any impairment is recorded in the period in which the re-measurement is performed.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments below:

Securities available for sale - The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges. If quoted prices are not available, fair values are measured using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities, or other model-based valuation techniques requiring observable inputs other than quoted prices such as yield curve, prepayment speeds, and default rates. Level 1 securities include U.S. Treasury securities that are traded on an active exchange or by dealers or brokers in active over-the-counter markets. The fair value of these securities is determined by quoted prices on an active exchange or over-the-counter market. Level 2 securities primarily include U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities as well as municipal bonds in markets that are active. In determining the fair value of the securities categorized as Level 2, we obtain reports from nationally recognized broker-dealers detailing the fair value of each investment security held as of each reporting date. The broker-dealers use prices obtained from nationally recognized pricing services to value our fixed income securities. The fair value of the municipal securities is determined based on pricing data provided by nationally recognized pricing services. We review the prices obtained for reasonableness based on our understanding of the marketplace and consider any credit issues related to the bonds. As we have not made any adjustments to the market quotes provided to us and as they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy. Level 3 securities are instruments that are not traded in the market. As such, no observable market data for the instrument is available, which necessitates the use of significant unobservable inputs.

Derivatives – The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

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Loans held for sale - Loans held for sale includes the guaranteed portion of SBA 7(a) loans carried at the lower of cost or fair value. Management obtains quotes, bids or pricing indication sheets on all or part of the loans directly from the purchasing financial institutions. Premiums received or to be received on the quotes, bids or pricing indication sheets are indicative of the fact that cost is lower than fair value. At September 30, 2026 and December 31, 2025, the SBA 7(a) loans held for sale were recorded at their cost. We record SBA 7(a) loans held for sale at fair value on a nonrecurring basis with Level 2 inputs. Loans held for sale also includes certain residential mortgage loans carried at the lower of cost or fair value, based upon bids from the purchasing institution. At September 30, 2026, loans held for sale also included an $18.0 million commercial real estate loan.

Nonperforming loans – Nonaccrual loans and loans 90 days past due and still accruing interest are considered nonperforming for reporting purposes. All nonperforming loans with a carrying balance over $250,000 are individually evaluated for the amount of impairment, if any. Nonperforming loans with a carrying balance of $250,000 or less are evaluated collectively. However, from time to time, nonrecurring fair value adjustments to collateral dependent nonperforming loans, for which repayment is expected to be obtained through the sale of the underlying collateral, are recorded based on either the current appraised value of the collateral, or management’s judgment, that are then adjusted based on recent market trends. When the fair value of the collateral is less than the book value, a valuation allowance is established to carry the loan at the fair value of the collateral, and results in a Level 3 measurement.

OREO - Fair value of OREO is based primarily on third party appraisals, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Appraisals are required annually and may be updated more frequently as circumstances require and the fair value adjustments are made to OREO based on the updated appraised value of the property.

Servicing assets - On a quarterly basis, the Company utilizes a third party service to evaluate servicing assets related to loans sold to unaffiliated parties with servicing retained, and result in a Level 3 classification. Servicing assets are assessed for impairment or increased obligation based on fair value at each reporting date.

Other repossessed assets – Fair value of equipment from equipment financing agreements is based primarily on a third party valuation service, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Valuations are required at the time the asset is repossessed and may be subsequently updated periodically due to the Company’s short-term possession of the asset prior to sale or as circumstances require and the fair value adjustments are made to the asset based on its value prior to sale.

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Assets and Liabilities Measured at Fair Value on a Recurring Basis

As of September 30, 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)
September 30, 2026
Assets:
Securities available for sale:
U.S. Treasury securities		$	225,051			$	—			$	—			$	225,051
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential			—				333,547				—				333,547
Mortgage-backed securities - commercial			—				63,814				—				63,814
Collateralized mortgage obligations			—				151,059				—				151,059
Other U.S. government agency obligations			—				34,083				—				34,083
Total U.S. government agency and sponsored agency obligations			—				582,503				—				582,503
Municipal bonds-tax exempt			—				61,945				—				61,945
Total securities available for sale		$	225,051			$	644,448			$	—			$	869,499
Derivative financial instruments		$	—			$	4,397			$	—			$	4,397
Liabilities:
Derivative financial instruments		$	—			$	3,138			$	—			$	3,138
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
Other U.S. government agency obligations			—				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

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

As of September 30, 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)
September 30, 2026
Assets:
Collateral dependent loans (1)		$	46,870			$	—			$	—			$	46,870
Commercial real estate loans held for sale			18,011			$	—				18,011				—
Residential mortgage loans held for sale			2,211				—				—				2,211
Other real estate owned			1,084				—				—				1,084
Repossessed personal property			293				—				—				293
December 31, 2025
Assets:
Collateral dependent loans (1)		$	12,539			$	—			$	—			$	12,539
Other real estate owned			1,980				—				—				1,980
Repossessed personal property			588				—				—				588

(1)Consisted entirely of real estate loans.

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The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at September 30, 2026 and December 31, 2025:

		Fair Value				Valuation Techniques		Unobservable Input(s)		Range (Weighted Average)
		(in thousands)
September 30, 2026
Collateral dependent loans:
Real estate loans:
Commercial property
Other		$	46,870			Income approach		Adjustments to expected cash flows		(2)% to 3% / 0%	(1)
Residential mortgage loans held for sale		$	2,211			Income approach		Adjustments to expected cash flows		(2)% to 1% / (1)%	(2)
Other real estate owned		$	1,084			Market approach		Adjustments to market data		(13)% to 1% / (5)%	(1)
Repossessed personal property		$	293			Market approach		Adjustments to market data		N/A	(3)
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	(3)

(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. Prospective values are based on the market conditions that 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)Estimated principal loss range of (1.7)% to (1.8)%; other adjustments range of (1.1)% to 1.3%. Estimated principal losses are based on the probability of default multiplied by the estimated loss given default. Other adjustments include interest rate, prepayment, liquidity, and market participant risk premium.

(3)The dollar amount of equipment collateral is typically 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.

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ASC 825, Financial Instruments, requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured on a recurring basis or non-recurring basis are discussed above.

The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825), among other provisions, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Other than certain financial instruments for which we had concluded that the carrying amounts approximate fair value, the fair value estimates shown below were based on an exit price notion as of September 30, 2026, as required by Topic 825. The financial instruments for which we had concluded that the carrying amounts approximate fair value include cash and due from banks, accrued interest receivable and payable, and noninterest-bearing deposits.

The estimated fair values of financial instruments were as follows:

		September 30, 2026
		Carrying				Fair Value
		Amount				Level 1				Level 2				Level 3
		(in thousands)
Financial assets:
Cash and due from banks		$	348,576			$	348,576			$	—			$	—
Securities available for sale			869,499				225,051				644,448				—
Loans held for sale			31,242				—				31,506				—
Loans, net of allowance for credit losses			6,497,891				—				—				6,516,734
Accrued interest receivable			25,404				25,404				—				—
Derivative financial instruments			4,397				—				4,397				—
Financial liabilities:
Interest-bearing deposits		$	4,909,714			$	—			$	—			$	4,901,854
Borrowings and subordinated debentures			76,147				—				—				76,402
Accrued interest payable			28,131				28,131				—				—
Derivative financial instruments			3,138				—				3,138				—

		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				—				—
Derivative financial instruments			2,719				—				2,719				—
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				—				—
Derivative financial instruments			2,568				—				2,568				—

33

The methods and assumptions used to estimate the fair value of each class of financial instruments for which it was practicable to estimate that value are explained below:

Cash and due from banks – The carrying amounts of cash and due from banks approximate fair value due to the short-term nature of these instruments (Level 1).

Securities – The fair value of securities, consisting of securities available for sale, is generally obtained from market bids for similar or identical securities, from independent securities brokers or dealers, or from other model-based valuation techniques described above (Level 1 and 2).

Loans held for sale – Loans held for sale are carried at the lower of aggregate cost or fair market value, as determined based upon quotes, bids or sales contract prices (Levels 1 and 2).

Loans, net of allowance for credit losses – The fair value of loans is estimated based on the discounted cash flow approach. To estimate the fair value of the loans, certain loan characteristics such as account types, remaining terms, annual interest rates or coupons, interest types, past delinquencies, timing of principal and interest payments, current market rates, loan-to-value ratios, loss exposures, and remaining balances are considered. Additionally, the Company’s prior charge-off rates and loss ratios as well as various other assumptions relating to credit, interest, and prepayment risks are used as part of valuing the loan portfolio. Subsequently, the loans were individually evaluated by sorting and pooling them based on loan types, credit risk grades, and payment types. Consistent with the requirements of ASU 2016-01, the fair value of the Company’s loans is considered to be an exit price notion as of September 30, 2026 (Level 3).

The fair value of collateral dependent loans is estimated based on the net realizable fair value of the collateral or the observable market price of the most recent sale or quoted price from loans held for sale. The Company does not record loans at fair value on a recurring basis. Nonrecurring fair value adjustments to collateral dependent loans are recorded based on the current appraised value of the collateral (Level 3).

Accrued interest receivable – The carrying amount of accrued interest receivable approximates its fair value (Level 1).

Derivative financial instruments – The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

Interest-bearing deposits – The fair value of interest-bearing deposits, such as savings accounts, money market checking, and certificates of deposit, is estimated based on discounted cash flows. The cash flows for non-maturity deposits, including savings accounts and money market checking, are estimated based on their historical decaying experiences. The discount rate used for fair valuation is based on interest rates currently being offered by the Bank on comparable deposits as to amount and term (Level 3).

Borrowings and subordinated debentures – Borrowings consist of FHLB advances, subordinated debentures and other borrowings. Discounted cash flows based on current market rates for borrowings with similar remaining maturities are used to estimate the fair value of borrowings (Level 2 and 3).

Accrued interest payable – The carrying amount of accrued interest payable approximates its fair value (Level 1).

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Note 12 — Off-Balance Sheet Commitments

The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk similar to the risk involved with on-balance sheet items.

The Bank’s exposure to losses in the event of non-performance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for extending loan facilities to customers. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon an extension of credit, was based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, premises and equipment, and income-producing or borrower-occupied properties.

Some of the commitments to fund existing loans, lines of credit and letters of credit are expected to expire without being drawn upon. Therefore, the total commitments do not necessarily represent future cash requirements. As of September 30, 2026, the Bank was obligated on $180.0 million of letters of credit to the FHLB of San Francisco, which were being used as collateral for $181.3 million in public fund deposits from the State of California.

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

		September 30,				December 31,
		2026				2025
		(in thousands)
Unused commitments to extend credit		$	990,715			$	930,122
Standby letters of credit			219,154				163,071
Commercial letters of credit			24,410				5,761
Total commitments		$	1,234,279			$	1,098,954

The allowance for credit losses related to off-balance sheet items was maintained at a level believed to be sufficient to absorb current expected lifetime losses related to these unfunded credit facilities. The determination of the allowance adequacy was based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities.

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

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
		(in thousands)
Balance at beginning of period		$	1,993			$	2,506			$	2,349			$	2,074
Credit loss expense (recovery)			(150	)			(399	)			(506	)			33
Balance at end of period		$	1,843			$	2,107			$	1,843			$	2,107

Note 13 — Leases

The Company enters into leases in the normal course of business primarily for bank branch offices, back-office operations locations, business development offices, information technology data centers and information technology equipment. At September 30, 2026, the Company’s leases had remaining terms ranging from one month to eight years, some of which include renewal or termination options to extend the lease for up to ten years.

The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease components in its real estate leases as part of the associated lease component. The Company has also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the consolidated balance sheets.

Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the term of the lease. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

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Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term.

As of September 30, 2026, the outstanding balances for our right-of-use asset and lease liability were $30.8 million and $34.8 million, respectively. As of December 31, 2025, the outstanding balances of the right-of-use asset and lease liability were $32.0 million and $36.0 million, respectively. The right-of-use asset is reported in prepaid expenses and other assets, and the lease liability is reported in accrued expenses and other liabilities on the consolidated balance sheets.

In determining the discount rates, since most of our leases do not provide an implicit rate, we used our incremental borrowing rate provided by the FHLB of San Francisco based on the information available at the commencement date to calculate the present value of lease payments.

At September 30, 2026, future minimum rental commitments under these non-cancelable operating leases, with initial or remaining terms of one year or more, were as follows:

		Amount
		(in thousands)
2026		$	2,194
2027			8,582
2028			8,074
2029			7,306
2030			5,554
Thereafter			6,619
Remaining lease commitments			38,329
Interest			(3,490	)
Present value of lease liability		$	34,839

Net lease expense recognized for the three months ended September 30, 2026 and 2025 was $2.4 million and $2.4 million, respectively. Net lease expense recognized for the nine months ended September 30, 2026 and 2025 was $7.1 million and $7.1 million, respectively. Sublease income was less than one hundred thousand dollars for both periods.

Weighted average remaining lease terms for the Company’s operating leases were 4.92 years and 5.59 years as of September 30, 2026 and December 31, 2025, respectively. Weighted average discount rates used for the Company’s operating leases were 3.88% and 3.85% as of September 30, 2026 and December 31, 2025, respectively.

Cash paid and included in cash flows from operating activities for amounts used in the measurement of the lease liability of the Company’s operating leases was $2.1 million and $2.1 million for the three months ended September 30, 2026 and 2025, respectively, and $6.3 million and $6.5 million for the nine months ended September 30, 2026 and 2025, respectively.

Note 14 — Liquidity

Hanmi Financial

As of September 30, 2026, Hanmi Financial had $4.4 million in cash on deposit with its bank subsidiary and $4.0 million of U.S. Treasury securities at fair value. As of December 31, 2025, the Company had $8.8 million in cash on deposit with its bank subsidiary and $46.2 million of U.S. Treasury securities at fair value. Management believes that Hanmi Financial, on a stand-alone basis, had adequate liquid assets to meet its current debt obligations.

Hanmi Bank

The principal objective of our liquidity management program is to maintain the Bank’s ability to meet the day-to-day cash flow requirements of its customers who wish either to withdraw funds or to draw upon credit facilities to meet their cash needs. Management believes that the Bank, on a stand-alone basis, has adequate liquid assets to meet its current obligations. The Bank’s primary funding source are deposits originating from its branch platform. The Bank’s wholesale funds historically consisted of FHLB advances, brokered deposits, and State of California time deposits. As of September 30, 2026, the Bank had no outstanding FHLB advances. As of December 31, 2025, the Bank had $150.0 million of outstanding FHLB advances. The Bank had $86.9 million and $88.5 million of brokered deposits at September 30, 2026 and December 31, 2025, respectively, and $181.3 million and $150.8 million of State of California time deposits at September 30, 2026 and December 31, 2025, respectively.

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We monitor the sources and uses of funds on a regular basis to maintain an acceptable liquidity position. The Bank’s primary source of borrowings is the FHLB, from which the Bank is eligible to borrow up to 30% of its assets. As of September 30, 2026 and December 31, 2025, the total borrowing capacity, based on pledged collateral was $1.70 billion and $1.76 billion, respectively, while the remaining available borrowing capacity was $1.52 billion and $1.46 billion, respectively.

The amount that the FHLB is willing to advance differs based on the quality and character of qualifying collateral pledged by the Bank, and the FHLB may adjust the advance rates for qualifying collateral upwards or downwards from time to time. To the extent deposit renewals and deposit growth are not sufficient to fund maturing and withdrawable deposits, repay maturing borrowings, fund existing and future loans, equipment financing agreements and securities, and otherwise fund working capital needs and capital expenditures, the Bank may utilize the remaining borrowing capacity from its FHLB borrowing arrangement.

As a means of augmenting its liquidity, the Bank also had an available borrowing source of $833.5 million from the Federal Reserve Bank of San Francisco Discount Window, to which the Bank pledged loans with a carrying value of $1.19 billion, with no borrowings outstanding as of September 30, 2026. At December 31, 2025, the available borrowing capacity through the Federal Reserve Bank of San Francisco Discount Window was $424.5 million on pledged loans with carrying values of $528.1 million, with no borrowings outstanding. The Bank maintains other sources of liquidity, including a line of credit for repurchase agreements up to $100.0 million and four unsecured federal funds lines of credit totaling $140.0 million. These sources had no outstanding balances as of September 30, 2026 or December 31, 2025.

Note 15 — Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates.

Derivatives Designated as Hedging Instruments - Cash Flow Hedges of Interest Rate Risk

The Company’s objective in using interest rate derivatives is to add stability to interest income and interest expense by managing its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps and caps as part of its interest rate risk management strategy.

Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives are used to hedge the cash flows associated with variable-rate assets and liabilities. During the third quarter of 2026, the Company entered into a $180.0 million notional interest rate swap, designated as a cash flow hedge, with an effective date of December 15, 2026 and a maturity date of December 15, 2028. The interest rate swap hedges against fluctuations in interest rates upon the semiannual renewal of time deposits from the State of California, which totaled $181.3 million at September 30, 2026. The variable leg of the swap is indexed to overnight SOFR. Within the next twelve months, the Company estimates that $0.1 million will be reclassified as a reduction to interest expense as it relates to the interest rate swap.

Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. Such derivatives are used to hedge the cash flows associated with variable-rate liabilities. During the third quarter of 2026, the Company entered into a $26.0 million notional interest rate cap, designated as a cash flow hedge, with an effective date of September 15, 2026 and a maturity date of September 15, 2028. The interest rate cap, which has a benchmark index of three-month term SOFR, hedges against rising interest rates associated with our trust preferred securities. See “Note 8 – Borrowings and Subordinated Debentures” for more details on the Company's trust preferred securities. The interest rate cap includes a contractual strike rate of 4.00%. The Company paid an initial up-front premium of $332 thousand, which is being amortized on a straight-line basis through the maturity date of the interest rate cap. Within the next twelve months, the Company estimates that less than one hundred thousand dollars will be reclassified as a net increase to interest expense as it relates to the interest rate cap.

For derivatives designated and that qualified as cash flow hedges of interest rate risk, the gain or loss on the derivative was recorded in accumulated other comprehensive income and subsequently reclassified into interest income in the same period(s) during

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which the hedged transaction affected earnings. Management evaluated the effectiveness of the Company’s derivatives designated as cash flow hedges at inception and at the balance sheet dates during which they were outstanding and determined they were effective.

Derivatives Not Designated as Hedging Instruments

The Company also enters into interest rate swap agreements between the Company and its customers and other third-party counterparties. The Company enters into “back-to-back swap” arrangements whereby the Company executes interest rate swap agreements with its customers and acquires an offsetting swap position from a third-party counterparty. These derivative financial instruments are accounted for at fair value, with changes in fair value recognized in the Company’s consolidated statements of income.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of September 30, 2026 and December 31, 2025.

As of September 30, 2026		Derivative Assets										Derivative Liabilities
		Notional Amount				Balance Sheet Location		Fair Value				Notional Amount				Balance Sheet Location		Fair Value
		(in thousands)
Derivatives not designated as hedging instruments
Back-to-back interest rate swaps related to customer loans		$	59,099			Other Assets		$	3,164			$	59,099			Other Liabilities		$	3,138
Total derivatives not designated as hedging instruments								$	3,164									$	3,138
Derivatives designated as hedging instruments
Pay-fixed interest rate swap related to State of California time deposits		$	180,000			Other Assets		$	853			$	—			Other Liabilities		$	—
Interest rate cap related to trust preferred securities			26,000			Other Assets			380				—			Other Liabilities			—
Total derivatives designated as hedging instruments								$	1,233									$	—
As of December 31, 2025		Derivative Assets										Derivative Liabilities
		Notional Amount				Balance Sheet Location		Fair Value				Notional Amount				Balance Sheet Location		Fair Value
		(in thousands)
Derivatives not designated as hedging instruments
Back-to-back interest rate swaps related to customer loans		$	61,350			Other Assets		$	2,579			$	61,350			Other Liabilities		$	2,568
Total derivatives not designated as hedging instruments								$	2,579									$	2,568
Derivatives designated as hedging instruments
Pay-fixed interest rate swaps related to customer loans		$	175,000			Other Assets		$	140			$	—			Other Liabilities		$	—
Total derivatives designated as hedging instruments								$	140									$	—

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The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income for the three and nine months ended September 30, 2026 and 2025.

Three Months Ended September 30, 2026
Derivatives in Subtopic 815-20 Hedging Relationships		Amount of Gain or (Loss) Recognized in OCI on Derivative				Amount of Gain or (Loss) Recognized in OCI - Included Component				Amount of Gain or (Loss) Recognized in OCI - Excluded Component				Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income				Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component				Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component
		(in thousands)
Derivatives in Cash Flow Hedging Relationships
Pay-fixed interest rate swap related to State of California time deposits		$	853			$	853			$	—			Interest Expense		$	—			$	—			$	—
Interest rate cap related to trust preferred securities			48				48				-			Interest Expense			(2	)			-				(2	)
Total		$	901			$	901			$	—					$	(2	)		$	—			$	(2	)
Three Months Ended September 30, 2025
Derivatives in Subtopic 815-20 Hedging Relationships		Amount of Gain or (Loss) Recognized in OCI on Derivative				Amount of Gain or (Loss) Recognized in OCI - Included Component				Amount of Gain or (Loss) Recognized in OCI - Excluded Component				Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income				Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component				Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component
		(in thousands)
Derivatives in Cash Flow Hedging Relationships
Pay-fixed interest rate swaps related to customer loans		$	(94	)		$	(94	)		$	—			Interest Income		$	(241	)		$	(241	)		$	—
Total		$	(94	)		$	(94	)		$	—					$	(241	)		$	(241	)		$	—

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Nine Months Ended September 30, 2026
Derivatives in Subtopic 815-20 Hedging Relationships		Amount of Gain or (Loss) Recognized in OCI on Derivative				Amount of Gain or (Loss) Recognized in OCI - Included Component				Amount of Gain or (Loss) Recognized in OCI - Excluded Component				Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income				Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component				Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component
		(in thousands)
Derivatives in Cash Flow Hedging Relationships
Pay-fixed interest rate swap related to State of California time deposits		$	853			$	853			$	—			Interest Expense		$	—			$	—			$	—
Interest rate cap related to trust preferred securities			48				48				—			Interest Expense			(2	)			—				(2	)
Pay-fixed interest rate swaps related to customer loans			(57	)			(57	)			—			Interest Income			82				82				—
Total		$	844			$	844			$	—					$	80			$	82			$	(2	)
Nine Months Ended September 30, 2025
Derivatives in Subtopic 815-20 Hedging Relationships		Amount of Gain or (Loss) Recognized in OCI on Derivative				Amount of Gain or (Loss) Recognized in OCI - Included Component				Amount of Gain or (Loss) Recognized in OCI - Excluded Component				Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income				Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component				Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component
		(in thousands)
Derivatives in Cash Flow Hedging Relationships
Pay-fixed interest rate swaps related to customer loans		$	(139	)		$	(139	)		$	—			Interest Income		$	(734	)		$	(734	)		$	—
Total		$	(139	)		$	(139	)		$	—					$	(734	)		$	(734	)		$	—

The table below presents the effect of cash flow hedge accounting on the consolidated statements of income for the three and nine months ended September 30, 2026 and 2025.

		Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationship
		Three Months Ended																Nine Months Ended
		September 30,																September 30,
		2026								2025								2026								2025
		Interest Income				Interest Expense				Interest Income				Interest Expense				Interest Income				Interest Expense				Interest Income				Interest Expense
		(in thousands)
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
Interest contracts
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income		$	—			$	(2	)		$	(241	)		$	—			$	82			$	(2	)		$	(734	)		$	—
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income - included component			—				—				(241	)			—				82				—				(734	)			—

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The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income for the three and nine months ended September 30, 2026 and 2025.

Derivatives Not Designated as Hedging Instruments under Subtopic 815-20		Location of Gain or (Loss) Recognized in Income on Derivative		Amount of Gain or (Loss) Recognized in Income on Derivative
				Three Months Ended September 30,								Nine Months Ended September 30,
				2026				2025				2026				2025
				(in thousands)
Back-to-back interest rate swaps related to customer loans		Other income		$	7			$	(1	)		$	14			$	(29	)
Total				$	7			$	(1	)		$	14			$	(29	)

No fee income was recognized from the Company’s derivative financial instruments for the nine months ended September 30, 2026 or 2025.

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The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2026 and December 31, 2025. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the consolidated balance sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the consolidated balance sheets.

Offsetting of Derivative Assets
As of September 30, 2026
		Gross Amounts of Recognized Assets				Gross Amounts Offset in the Statement of Financial Position				Net Amounts of Assets presented in the Statement of Financial Position				Gross Amounts Not Offset in the Consolidated Balance Sheets
														Financial Instruments				Cash Collateral Received				Net Amount
		(in thousands)
Derivatives		$	4,397			$	—			$	4,397			$	—			$	3,890			$	507
Offsetting of Derivative Liabilities
As of September 30, 2026
		Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the Statement of Financial Position				Net Amounts of Liabilities presented in the Statement of Financial Position				Gross Amounts Not Offset in the Consolidated Balance Sheets
														Financial Instruments				Cash Collateral Received				Net Amount
		(in thousands)
Derivatives		$	3,138			$	—			$	3,138			$	—			$	—			$	3,138
Offsetting of Derivative Assets
As of December 31, 2025
		Gross Amounts of Recognized Assets				Gross Amounts Offset in the Statement of Financial Position				Net Amounts of Assets presented in the Statement of Financial Position				Gross Amounts Not Offset in the Consolidated Balance Sheets
														Financial Instruments				Cash Collateral Received				Net Amount
		(in thousands)
Derivatives		$	2,719			$	—			$	2,719			$	397			$	1,938			$	384
Offsetting of Derivative Liabilities
As of December 31, 2025
		Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the Statement of Financial Position				Net Amounts of Liabilities presented in the Statement of Financial Position				Gross Amounts Not Offset in the Consolidated Balance Sheets
														Financial Instruments				Cash Collateral Received				Net Amount
		(in thousands)
Derivatives		$	2,568			$	—			$	2,568			$	397			$	—			$	2,171

The Company has agreements with each of its derivative counterparties that contain a provision stating if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. In addition, these agreements may also require the Company to post additional collateral should it fail to maintain its status as a well- or adequately- capitalized institution.

As of September 30, 2026 and December 31, 2025, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $0. As of September 30, 2026 and December 31, 2025, no collateral was provided related to these agreements.

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Note 16 — Segment Reporting

The Company has one reportable segment, Banking, as determined by the Chief Financial Officer, who is designated the chief operating decision maker, based upon information provided about the Company’s products and services offered, which are primarily banking operations. The Banking segment is also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business. The chief operating decision maker uses net interest income, net interest margin, non-interest income, non-interest expense, credit loss expense, and net income to assess performance and in the determination of allocating resources. These metrics, coupled with monitoring of budget to actual results, are used in assessing performance and in establishing compensation. Loans, investments, deposits, and non-interest revenue sources provide the revenues in our banking operations. Interest expense, provisions for credit losses, and salaries and benefits provide the significant expenses in our banking operations.

The following table presents information reported internally for performance assessment by the chief operating decision maker for the following periods:

		Banking Segment
		Three Months Ended September 30,
		2026				2025
		(in thousands)
Net interest income		$	67,570			$	61,079
Noninterest income			9,030				9,880
Segment revenues			76,600				70,959
Other revenues			—				—
Total consolidated revenues			76,600				70,959
Less:
Credit loss expense			4,530				2,145
Noninterest expenses			39,849				37,357
Income tax expense			8,538				9,396
Segment net income			23,683				22,061
Reconciliation of profit:
Adjustments and reconciling items			—				—
Consolidated net income		$	23,683			$	22,061

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		Banking Segment
		Nine Months Ended September 30,
		2026				2025
		(in thousands)
Net interest income		$	194,630			$	173,310
Noninterest income			25,917				25,676
Segment revenues			220,547				198,986
Other revenues			—				—
Total consolidated revenues			220,547				198,986
Less:
Credit loss expense			8,608				12,496
Noninterest expenses			117,256				108,689
Income tax expense			24,938				22,951
Segment net income			69,745				54,850
Reconciliation of profit:
Adjustments and reconciling items			—				—
Consolidated net income		$	69,745			$	54,850
		September 30,				December 31,
		2026				2025
		(in thousands)
Segment assets		$	8,043,788			$	7,869,185
Other assets			—				—
Consolidated assets		$	8,043,788			$	7,869,185

Note 17 — Subsequent Events

Cash Dividend

On October 29, 2026, the Company announced that the Board of Directors of the Company declared a quarterly cash dividend of $0.28 per share to be paid on November 25, 2026 to stockholders of record as of the close of business on November 9, 2026.

Note Sale

On November 4, 2026, the Bank completed the sale of the $18.0 million nonperforming commercial real estate loan included in Loans held for sale at the end of the third quarter.

44

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

The following is management’s discussion and analysis of our results of operations and financial condition as of and for the three and nine months ended September 30, 2026. This analysis 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”) and with the unaudited consolidated financial statements and notes thereto set forth in this Quarterly Report on Form 10-Q for the period ended September 30, 2026 (this “Report”).

Forward-Looking Statements

Some of the statements contained in this Report are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements in this Report other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial condition and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, financial condition, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

•a failure to maintain adequate levels of capital and liquidity to support our operations;

•general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;

•volatility and deterioration in the credit and equity markets;

•changes in investor sentiment or consumer spending, borrowing and savings habits;

•availability of capital from private and government sources;

•demographic changes;

•competition for loans and deposits and failure to attract or retain loans and deposits;

•inflation and fluctuations in interest rates and the shape of the yield curve that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;

•our ability to enter new markets successfully and capitalize on growth opportunities;

•the current or anticipated impact of military conflict, terrorism or other geopolitical events;

•the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;

•risks of natural disasters;

•legal proceedings and litigation brought against us;

•risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors;

•the failure to maintain current technologies;

•risks associated with Small Business Administration loans;

•failure to attract, develop, or retain key employees;

•our ability to access cost-effective funding;

•the imposition of tariffs or other domestic or international governmental policies, trade restrictions, and any retaliatory measures impacting our borrowers and the broader economy;

•the impact of a potential federal government shutdown, which may impact on our ability to effect sales of Small Business Administration loans, debt ceiling impasses or fiscal uncertainty;

•changes in legislation, regulation, policies, or administrative practices pertaining to rent regulation and any rent freezes, rent guideline determinations, or expanded tenant protections adopted by New York State or New York City that could limit the ability of owners of multi-family properties securing our loans to increase rents or convert rent-regulated units to market-rate units, and the resulting effect on collateral values, borrower cash flows, and our asset quality;

45

•changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;

•fluctuations in real estate values;

•changes in accounting policies and practices;

•changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;

•the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;

•strategic transactions we may enter into, including the costs associated with the evaluation of any strategic opportunities and the overall effects of any acquisitions or dispositions we may make;

•the adequacy of and changes in the economic assumptions and methodology for computing our allowance for credit losses;

•our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;

•changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;

•our ability to control expenses;

•the inability of third-party service providers to perform their obligations to us; and

•the ability of the Company to withstand disruptions that may be caused by any failure of the operational systems of third parties.

For additional information concerning risks we face, see “Part II, Item 1A. Risk Factors” in this Report and “Item 1A. Risk Factors” in Part I of the 2025 Annual Report on Form 10-K. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

Critical Accounting Policies

We have established various accounting policies that govern the application of GAAP in the preparation of our financial statements. Our significant accounting policies are described in the Notes to the consolidated financial statements in the 2025 Annual Report on Form 10-K. We had no significant changes in our accounting policies since the filing of the 2025 Annual Report on Form 10-K.

Certain accounting policies require us to make significant estimates and assumptions that have a material impact on the carrying value of certain assets and liabilities, and we consider these to be critical accounting policies. For a description of these critical accounting policies, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” in the 2025 Annual Report on Form 10-K. Actual results could differ significantly from these estimates and assumptions, which could have a material impact on the carrying value of assets and liabilities at the balance sheet dates and our results of operations for the reporting periods. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Company’s Board of Directors.

Results of Operations

Net Interest Income

Our primary source of revenue is net interest income, which is the difference between interest derived from assets, and interest paid on liabilities obtained to fund those assets. Our net interest income is affected by changes in the level and mix of interest-earning assets and interest-bearing liabilities, referred to as volume changes. Net interest income is also affected by changes in the yields earned on assets and rates paid on liabilities, referred to as rate changes. Interest rates charged on loans are affected principally by changes to market interest rates, the demand for loans, our loan composition, the supply of money available for lending purposes, and other competitive factors. Those factors are, in turn, affected by general economic conditions and other factors beyond our control, such as federal economic policies, the general supply of money in the economy, legislative tax policies, governmental budgetary matters, and the actions of the Federal Reserve.

46

The following table shows the average balance of assets, liabilities and stockholders’ equity; the amount of interest income, and interest expense; the average yield or rate for each category of interest-earning assets and interest-bearing liabilities; and the net interest spread and the net interest margin on a taxable-equivalent basis for the periods indicated. All average balances are daily average balances.

		Three Months Ended
		September 30, 2026												September 30, 2025
						Interest				Average								Interest				Average
		Average				Income /				Yield /				Average				Income /				Yield /
		Balance				Expense				Rate				Balance				Expense				Rate
Assets		(dollars in thousands)
Interest-earning assets:
Loans:
Commercial real estate (1)		$	4,017,696			$	59,167				5.84	%		$	3,934,476			$	56,908				5.74	%
Residential mortgage (1)			991,153				13,281				5.36	%			1,020,889				13,812				5.37	%
Commercial and industrial (1)			1,090,135				19,276				7.02	%			904,019				17,593				7.72	%
Consumer			5,670				98				6.90	%			8,324				156				7.43	%
Equipment finance			355,169				6,155				6.93	%			436,727				7,222				6.61	%
Loans (1)			6,459,823				97,977				6.03	%			6,304,435				95,691				6.03	%
Securities (2)			966,574				6,819				2.85	%			985,888				6,592				2.70	%
FHLB stock			16,385				451				10.92	%			16,385				357				8.65	%
Interest-bearing deposits in other banks			370,575				3,409				3.65	%			239,993				2,586				4.27	%
Total interest-earning assets			7,813,357				108,656				5.53	%			7,546,701				105,226				5.54	%
Noninterest-earning assets:
Cash and due from banks			47,625												53,144
Allowance for credit losses			(70,267	)											(67,851	)
Other assets			265,516												252,039
Total assets		$	8,056,231											$	7,784,033
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing		$	83,470			$	35				0.16	%		$	86,839			$	38				0.17	%
Money market and savings			2,159,553				14,680				2.70	%			2,122,967				17,238				3.22	%
Time deposits			2,657,593				24,556				3.67	%			2,494,285				24,968				3.97	%
Total interest-bearing deposits			4,900,616				39,271				3.18	%			4,704,091				42,244				3.56	%
Borrowings			—				—				0.00	%			27,772				324				4.63	%
Subordinated debentures			132,407				1,815				5.48	%			130,766				1,579				4.83	%
Total interest-bearing liabilities			5,033,023				41,086				3.24	%			4,862,629				44,147				3.60	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing			2,034,788												1,960,331
Other liabilities			126,211												142,592
Stockholders’ equity			862,209												818,481
Total liabilities and stockholders’ equity		$	8,056,231											$	7,784,033
Net interest income						$	67,570											$	61,079
Cost of deposits (3)											2.25	%											2.51	%
Net interest spread (taxable equivalent basis) (4)											2.29	%											1.94	%
Net interest margin (taxable equivalent basis) (5)											3.44	%											3.22	%

(1)Loans include loans held for sale and exclude the allowance for credit losses. Nonaccrual loans are included in the average loans balance.

(2)Securities average yield is calculated on a fully taxable equivalent basis using the current statutory federal tax rate of 21%.

(3)Represents interest expense on deposits as a percentage of all interest-bearing and noninterest-bearing deposits.

(4)Represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.

(5)Represents net interest income as a percentage of average interest-earning assets.

47

The average balance of interest-earning assets increased 3.5%, or $266.7 million, to $7.81 billion for the three months ended September 30, 2026, from $7.55 billion for the three months ended September 30, 2025, primarily due to growth of $186.1 million in the average balance of commercial and industrial loans and growth of $130.6 million in the average balance of interest-bearing deposits in other banks, partially offset by an $81.6 million decrease in the average balance of equipment finance agreements. The average balance of interest-bearing liabilities increased 3.5%, or $170.4 million, to $5.03 billion for the three months ended September 30, 2026, compared with $4.86 billion for the three months ended September 30, 2025, primarily due to a $163.3 million increase in the average balance of time deposits.

Net interest margin, on a taxable equivalent basis, increased 22 basis points to 3.44% for the three months ended September 30, 2026, from 3.22% for the same period in 2025. This increase was primarily due to a decline in the cost of interest-bearing liabilities of 36 basis points to 3.24% for the three months ended September 30, 2026, from 3.60% for the same period in 2025, due to the decline in interest rates.

The table below shows changes in interest income and interest expense and the amounts attributable to variations in interest rates and volumes for the periods indicated. Simultaneous volume and rate effects have been allocated proportionally to the respective volume and rate variances based on their absolute dollar amounts.

		Three Months Ended September 30, 2026 vs. September 30, 2025
		Increases (Decreases) Due to Change In
		Volume				Rate				Total
		(in thousands)
Interest and dividend income:
Loans (1)		$	2,608			$	(322	)		$	2,286
Securities (2)			(32	)			259				227
FHLB stock			—				94				94
Interest-bearing deposits in other banks			1,406				(583	)			823
Total interest and dividend income			3,982				(552	)			3,430
Interest expense:
Demand: interest-bearing		$	(1	)		$	(2	)		$	(3	)
Money market and savings			297				(2,855	)			(2,558	)
Time deposits			1,635				(2,047	)			(412	)
Borrowings			(324	)			—				(324	)
Subordinated debentures			20				216				236
Total interest expense			1,627				(4,688	)			(3,061	)
Change in net interest income		$	2,355			$	4,136			$	6,491

(1)Loans include loans held for sale and exclude the allowance for credit losses. Nonaccrual loans are included in the average loans balance.

(2)Securities average yield is calculated on a fully taxable equivalent basis using the current statutory federal tax rate of 21%.

Net interest income increased 10.6%, or $6.5 million, to $67.6 million for the three months ended September 30, 2026 from $61.1 million for the three months ended September 30, 2025. This increase was primarily due to a $4.7 million effect from a decrease in interest rates on liabilities and a $4.0 million effect from an increase in the average balance of interest-earning assets, partially offset by a $1.6 million effect from an increase in the average balance of interest-bearing liabilities.

The $4.7 million impact from the decrease in interest rates on liabilities was primarily driven by money market and savings accounts and time deposits, which increased net interest income by $2.9 million and $2.0 million, respectively, for the three months ended September 30, 2026, compared with the same period in 2025. The $4.0 million volume-driven increase in interest income on interest-earning assets was primarily due to a higher average balance of loans. The $1.6 million offsetting increase in interest expense was due to the $1.6 million impact of a higher average balance of time deposits.

48

The following table shows the average balance of assets, liabilities and stockholders’ equity; the amount of interest income and interest expense; the average yield or rate for each category of interest-earning assets and interest-bearing liabilities; and the net interest spread and the net interest margin on a taxable-equivalent basis for the periods indicated. All average balances are daily average balances.

		Nine Months Ended
		September 30, 2026												September 30, 2025
						Interest				Average								Interest				Average
		Average				Income /				Yield /				Average				Income /				Yield /
		Balance				Expense				Rate				Balance				Expense				Rate
Assets		(dollars in thousands)
Interest-earning assets:
Loans:
Commercial real estate (1)		$	3,989,706			$	172,248				5.77	%		$	3,950,295			$	168,156				5.69	%
Residential mortgage (1)			1,009,483				40,827				5.39	%			990,848				39,816				5.37	%
Commercial and industrial (1)			1,060,241				53,712				6.77	%			840,404				48,051				7.64	%
Consumer			5,560				274				6.58	%			7,673				414				7.21	%
Equipment finance			380,434				19,590				6.87	%			461,770				22,731				6.56	%
Loans (1)			6,445,424				286,651				5.94	%			6,250,990				279,168				5.97	%
Securities (2)			946,309				19,115				2.72	%			993,730				19,022				2.58	%
FHLB stock			16,385				1,501				12.25	%			16,385				1,071				8.74	%
Interest-bearing deposits in other banks			255,357				6,863				3.59	%			205,663				6,554				4.26	%
Total interest-earning assets			7,663,475				314,130				5.48	%			7,466,768				305,815				5.48	%
Noninterest-earning assets:
Cash and due from banks			49,669												53,596
Allowance for credit losses			(69,937	)											(69,233	)
Other assets			256,302												250,485
Total assets		$	7,899,509											$	7,701,616
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing		$	80,070			$	96				0.16	%		$	82,533			$	95				0.15	%
Money market and savings			2,093,315				41,302				2.64	%			2,090,118				51,016				3.26	%
Time deposits			2,609,354				72,385				3.71	%			2,425,309				73,616				4.06	%
Total interest-bearing deposits			4,782,739				113,783				3.18	%			4,597,960				124,727				3.63	%
Borrowings			27,985				830				3.96	%			88,561				3,032				4.58	%
Subordinated debentures			131,222				4,887				4.97	%			130,788				4,746				4.84	%
Total interest-bearing liabilities			4,941,946				119,500				3.23	%			4,817,309				132,505				3.68	%
Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing			1,978,909												1,930,659
Other liabilities			127,056												142,425
Stockholders’ equity			851,598												811,223
Total liabilities and stockholders’ equity		$	7,899,509											$	7,701,616
Net interest income						$	194,630											$	173,310
Cost of deposits (3)											2.25	%											2.55	%
Net interest spread (taxable equivalent basis) (4)											2.25	%											1.80	%
Net interest margin (taxable equivalent basis) (5)											3.40	%											3.11	%

(1)Loans include loans held for sale and exclude the allowance for credit losses. Nonaccrual loans are included in the average loans balance.

(2)Securities average yield is calculated on a fully taxable equivalent basis using the current statutory federal tax rate of 21%.

(3)Represents interest expense on deposits as a percentage of all interest-bearing and noninterest-bearing deposits.

(4)Represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.

(5)Represents net interest income as a percentage of average interest-earning assets.

49

The average balance of interest-earning assets increased 2.6%, or $196.7 million, to $7.66 billion for the nine months ended September 30, 2026, from $7.47 billion for the nine months ended September 30, 2025, primarily due to growth of $219.8 million in the average balance of commercial and industrial loans. The average balance of interest-bearing liabilities increased $124.6 million, or 2.6%, to $4.94 billion for the nine months ended September 30, 2026, compared with $4.82 billion for the nine months ended September 30, 2025, primarily due to a $184.0 million increase in the average balance of time deposits.

Net interest margin, on a taxable equivalent basis, increased 29 basis points to 3.40% for the nine months ended September 30, 2026, from 3.11% for the same period in 2025. This increase was primarily due to a decline in the cost of interest-bearing liabilities of 45 basis points to 3.23% for the nine months ended September 30, 2026, from 3.68% for the same period in 2025, due to the decline in interest rates.

The table below shows changes in interest income and interest expense and the amounts attributable to variations in interest rates and volumes for the periods indicated. Simultaneous volume and rate effects have been allocated proportionally to the respective volume and rate variances based on their absolute dollar amounts.

		Nine Months Ended September 30, 2026 vs. September 30, 2025
		Increases (Decreases) Due to Change In
		Volume				Rate				Total
		(in thousands)
Interest and dividend income:
Loans (1)		$	8,744			$	(1,261	)		$	7,483
Securities (2)			(681	)			774				93
FHLB stock			—				430				430
Interest-bearing deposits in other banks			1,584				(1,275	)			309
Total interest and dividend income			9,647				(1,332	)			8,315
Interest expense:
Demand: interest-bearing		$	(3	)		$	4			$	1
Money market and savings			78				(9,792	)			(9,714	)
Time deposits			5,586				(6,817	)			(1,231	)
Borrowings			(2,076	)			(126	)			(2,202	)
Subordinated debentures			16				125				141
Total interest expense			3,601				(16,606	)			(13,005	)
Change in net interest income		$	6,046			$	15,274			$	21,320

(1)Loans include loans held for sale and exclude the allowance for credit losses. Nonaccrual loans are included in the average loans balance.

(2)Securities average yield is calculated on a fully taxable equivalent basis using the current statutory federal tax rate of 21%.

Net interest income increased 12.3%, or $21.3 million, to $194.6 million for the nine months ended September 30, 2026 from $173.3 million for the nine months ended September 30, 2025. This increase was primarily due to a $16.6 million effect from a decrease in interest rates on liabilities and an $8.7 million effect from an increase in the average balance of loans, partially offset by a $3.6 million impact from an increase in the average balance of interest-bearing liabilities.

The $16.6 million effect from the decrease in interest rates on liabilities was primarily driven by money market and savings accounts and time deposits, which increased net interest income by $9.8 million and $6.8 million, respectively, for the nine months ended September 30, 2026, compared with the same period in 2025. The $8.7 million volume-driven increase in interest income on loans was primarily due to a higher average balance of commercial and industrial loans, partially offset by a decline in the average balance of equipment financing agreements. The $3.6 million offsetting increase in interest expense was primarily due to a $5.6 million impact of a higher average balance of time deposits, partially offset by a lower average balance of borrowings.

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Credit Loss Expense

For the third quarter of 2026, the Company recorded $4.5 million of credit loss expense, comprising a $4.7 million provision for loan losses and a $0.2 million recovery for off-balance sheet items. For the same period in 2025, the Company recorded $2.1 million of credit loss expense, comprising a $2.5 million provision for loan losses that was partially offset by a $0.4 million recovery recorded for off-balance sheet items. The $2.2 million increase in the provision for loan losses was primarily due to higher net charge-offs, which were $4.3 million for the three months ended September 30, 2026, compared with $0.5 million in net recoveries for the three months ended September 30, 2025.

For the nine months ended September 30, 2026, the Company recorded $8.6 million of credit loss expense, comprising a $9.1 million provision for loan losses and a $0.5 million recovery for off-balance sheet items. For the same period in 2025, the Company recorded $12.5 million of credit loss expense, comprised of a $12.5 million provision for loan losses. The $3.4 million decrease in the provision for loan losses was primarily due to lower net charge-offs, which were $8.2 million for the nine months ended September 30, 2026 and $12.8 million for the nine months ended September 30, 2025.

See also “Allowance for Credit Losses and Allowance for Credit Losses Related to Off-Balance Sheet Items” for further details.

Noninterest Income

The following table sets forth the various components of noninterest income for the periods indicated:

		Three Months Ended September 30,								Increase (Decrease)
		2026				2025				Amount				Percent
		(dollars in thousands)
Service charges on deposit accounts		$	2,080			$	2,160			$	(80	)			(3.7	)%
Trade finance and other service charges and fees			1,892				1,551				341				22.0
Servicing income			958				924				34				3.7
Bank-owned life insurance (“BOLI”) income			320				1,259				(939	)			(74.6	)
All other operating income			1,352				973				379				39.0
Service charges, fees & other			6,602				6,867				(265	)			(3.9	)
Gain on sale of SBA loans			2,284				1,857				427				23.0
Gain on sale of residential mortgage loans			279				1,156				(877	)			(75.9	)
Loss on sale of securities			(135	)			—				(135	)			—
Total noninterest income		$	9,030			$	9,880			$	(850	)			(8.6	)%

Noninterest income decreased 8.6%, or $0.9 million, to $9.0 million for the three months ended September 30, 2026 from $9.9 million for the three months ended September 30, 2025. The decrease was due to a $0.9 million decrease in BOLI income due to lower death benefits and a $0.9 million decrease in gain on the sale of residential mortgage loans due to a lower volume of loans sold, partially offset by a $0.4 million increase in gain on sale of SBA loans due to higher trade premiums.

During the three months ended September 30, 2026, the Company sold $34.0 million of SBA loans, recognizing a net gain of $2.3 million and trade premiums of 8.10%, compared with $32.6 million of SBA loans sold for a net gain of $1.9 million and trade premiums of 6.95% for the three months ended September 30, 2025. The Company sold $13.4 million of residential mortgage loans for a net gain of $0.3 million and trade premiums of 1.83% for the three months ended September 30, 2026. The Company sold $67.8 million of residential mortgage loans for a net gain of $1.2 million and trade premiums of 2.42% for the three months ended September 30, 2025.

51

		Nine Months Ended September 30,								Increase (Decrease)
		2026				2025				Amount				Percent
		(dollars in thousands)
Service charges on deposit accounts		$	6,309			$	6,546			$	(237	)			(3.6	)%
Trade finance and other service charges and fees			5,295				4,409				886				20.1
Servicing income			2,783				2,410				373				15.5
Bank-owned life insurance (“BOLI”) income			1,729				2,276				(547	)			(24.0	)
All other operating income			3,110				2,686				424				15.8
Service charges, fees & other			19,226				18,327				899				4.9
Gain on sale of SBA loans			5,705				6,018				(313	)			(5.2	)
Gain on sale of residential mortgage loans			1,121				1,331				(210	)			(15.8	)
Loss on sale of securities			(135	)			—				(135	)			—
Total noninterest income		$	25,917			$	25,676			$	241				0.9	%

Noninterest income increased 0.9%, or $0.2 million, to $25.9 million for the nine months ended September 30, 2026 from $25.7 million for the nine months ended September 30, 2025. The increase was due to a $0.9 million increase in trade finance and other service charges and fees due primarily to the issuance of higher value letters of credit and a $0.4 million increase in all other operating income due primarily to higher loan servicing income, partially offset by a $0.5 million decrease in BOLI income due to lower death benefit proceeds, a $0.3 million decrease in gain on sale of SBA loans, and a $0.2 million decrease in gain on sale of residential mortgage loans.

During the nine months ended September 30, 2026, the Company sold $87.4 million of SBA loans, recognizing a net gain of $5.7 million and trade premiums of 7.97%, compared with $100.2 million of SBA loans sold for a net gain of $6.0 million and trade premiums of 7.46% for the nine months ended September 30, 2025. The Company sold $75.8 million of residential mortgage loans for a net gain of $1.1 million and trade premiums of 2.18% for the nine months ended September 30, 2026, compared with $77.9 million of residential mortgage loans sold for a net gain of $1.3 million and trade premiums of 2.43% for the nine months ended September 30, 2025.

Noninterest Expense

The following table sets forth the components of noninterest expense for the periods indicated:

		Three Months Ended September 30,								Increase (Decrease)
		2026				2025				Amount				Percent
		(dollars in thousands)
Salaries and employee benefits		$	23,334			$	22,163			$	1,171				5.3	%
Occupancy and equipment			4,529				4,507				22				0.5
Data processing			4,706				3,860				846				21.9
Professional fees			1,696				1,978				(282	)			(14.3	)
Supplies and communications			489				423				66				15.6
Advertising and promotion			728				712				16				2.2
All other operating expenses			3,227				3,665				(438	)			(12.0	)
Subtotal			38,709				37,308				1,401				3.8
Other real estate owned expense (income)			(22	)			17				(39	)			(229.4	)
Repossessed personal property expense			35				32				3				9.4
Subordinated debt redemption			1,127				—				1,127				—
Total noninterest expense		$	39,849			$	37,357			$	2,492				6.7	%

Noninterest expense increased 6.7%, or $2.5 million, to $39.8 million for the three months ended September 30, 2026 from $37.4 million for the three months ended September 30, 2025. The increase was mainly attributed to a $1.2 million increase in salaries and employee benefits due to annual merit increases, a $1.1 million increase in subordinated debt redemption expense due to the recognition of deferred debt issuance costs upon the redemption of the 2031 Notes, and a $0.8 million increase in data processing expense due primarily to higher license and maintenance costs as a result of greater transaction volumes and increased vendor pricing. Partially offsetting the increases was a $0.4 million decrease in all other operating expenses.

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		Nine Months Ended September 30,								Increase (Decrease)
		2026				2025				Amount				Percent
		(dollars in thousands)
Salaries and employee benefits		$	68,074			$	65,204			$	2,870				4.4	%
Occupancy and equipment			13,326				13,301				25				0.2
Data processing			13,647				11,374				2,273				20.0
Professional fees			6,473				5,171				1,302				25.2
Supplies and communications			1,536				1,455				81				5.6
Advertising and promotion			2,096				2,094				2				0.1
All other operating expenses			11,178				10,409				769				7.4
Subtotal			116,330				109,008				7,322				6.7
Other real estate owned income			(361	)			(403	)			42				(10.4	)
Repossessed personal property expense			160				84				76				90.5
Subordinated debt redemption			1,127				—				1,127				—
Total noninterest expense		$	117,256			$	108,689			$	8,567				7.9	%

Noninterest expense increased 7.9%, or $8.6 million, to $117.3 million for the nine months ended September 30, 2026 from $108.7 million for the nine months ended September 30, 2025. The increase was mainly attributed to a $2.9 million increase in salaries and employee benefits due to annual merit increases, a $2.3 million increase in data processing due to higher license and maintenance costs as a result of greater transaction volumes and increased vendor pricing, a $1.3 million increase in professional fees due to higher legal and consulting fees, and a $1.1 million increase due to the accelerated amortization of deferred debt issuance costs.

Income Tax Expense

Income tax expense was $8.5 million and $9.4 million, representing effective income tax rates of 26.5% and 29.9% for the three months ended September 30, 2026 and 2025, respectively. Income tax expense for the nine months ended September 30, 2026 and 2025 was $24.9 million and $23.0 million, respectively, representing effective tax rates of 26.3% and 29.5%, respectively. The lower effective tax rate for the three and nine months ended September 30, 2026 reflects the tax benefit arising from the first-quarter vesting of performance stock units, as well as a favorable change in the State of California's apportionment calculation.

Financial Condition

Securities

As of September 30, 2026, our securities portfolio consisted of U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities, tax-exempt municipal bonds and U.S. Treasury securities. Most of these securities carry fixed interest rates. Other than holdings of U.S. government agency and sponsored agency obligations, there were no securities of any one issuer exceeding 10% of stockholders’ equity as of September 30, 2026 or December 31, 2025.

Securities decreased $11.1 million to $869.5 million at September 30, 2026 from $880.6 million at December 31, 2025, mainly attributed to $217.2 million in principal paydowns, calls, and maturities and $44.5 million from the sale of U.S. Treasury securities, partially offset by $279.8 million in purchases.

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The following table summarizes the contractual or expected maturity schedule for securities, at amortized cost, and their cost-weighted average yield, as of September 30, 2026:

										After One Year But								After Five Years But
		Within One Year								Within Five Years								Within Ten Years								After Ten Years								Total
		Amount				Yield				Amount				Yield				Amount				Yield				Amount				Yield				Amount				Yield
		(dollars in thousands)
Securities available for sale:
U.S. Treasury securities		$	126,167				3.69	%		$	100,106				4.24	%		$	—				0.00	%		$	—				0.00	%		$	226,273				3.94	%
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential			—				—				1,543				3.25				211,080				1.36				171,650				3.06				384,273				2.13
Mortgage-backed securities - commercial			—				—				2,946				3.39				3,337				4.17				72,283				2.76				78,566				2.84
Collateralized mortgage obligations			151				4.50				14,166				2.21				7,564				3.59				138,026				4.40				159,907				4.17
Other U.S. government agency obligations			24,567				1.18				10,000				4.10				—				—				—				—				34,567				2.02
Total U.S. government agency and sponsored agency obligations			24,718				1.20				28,655				3.05				221,981				1.48				381,959				3.49				657,313				2.71
Municipal bonds-tax exempt																			74,242				-												74,242				1.34
Total securities available for sale		$	150,885				3.28	%		$	128,761				3.98	%		$	296,223				1.44	%		$	381,959				3.49	%		$	957,828				2.89	%

Loans

Loans (excluding loans held for sale), net of deferred loan fees and costs, discounts and the allowance for credit losses, increased $4.4 million to $6.50 billion at September 30, 2026 from $6.49 billion at December 31, 2025. For the nine months ended September 30, 2026, there was $1.29 billion in new loan production, offset by $805.6 million in loan sales and payoffs, and amortization and other reductions of $482.4 million. Loan production consisted of commercial real estate loans of $528.4 million, residential mortgage loans of $156.2 million, commercial and industrial loans of $394.2 million, equipment financing agreements of $95.7 million, and SBA loans of $118.8 million.

Loans held for sale increased $23.8 million to $31.2 million at September 30, 2026 from $7.4 million at December 31, 2025, primarily due to the addition of an $18.0 million nonperforming commercial real estate loan transferred to loans held for sale during the three months ended September 30, 2026.

The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses as of September 30, 2026. In addition, the table shows the distribution of such loans between those with floating or variable interest rates and those with fixed or predetermined interest rates.

		Within One Year				After One Year but Within Three Years				After Three Years but Within Five Years				After Five Years but Within Fifteen Years				After Fifteen Years				Total
		(in thousands)
Real estate loans:
Commercial property
Retail		$	219,534			$	342,545			$	423,402			$	80,668			$	84,201			$	1,150,350
Hospitality			264,050				272,155				285,029				43,118				19,331				883,683
Office			202,680				202,855				61,342				7,396				9,490				483,763
Other			322,538				447,643				646,891				72,258				37,340				1,526,670
Total commercial property loans			1,008,802				1,265,198				1,416,664				203,440				150,362				4,044,466
Construction			11,198				—				—				—				—				11,198
Residential			4,668				62				456				10,130				986,508				1,001,824
Total real estate loans			1,024,668				1,265,260				1,417,120				213,570				1,136,870				5,057,488
Commercial and industrial loans			428,313				235,638				299,621				207,696				346				1,171,614
Equipment financing agreements			35,395				148,674				140,989				14,541				—				339,599
Total loans		$	1,488,376			$	1,649,572			$	1,857,730			$	435,807			$	1,137,216			$	6,568,701
Loans with predetermined interest rates			904,282				755,256				841,220				39,422				263,749				2,803,929
Loans with variable interest rates			584,094				894,316				1,016,510				396,385				873,467				3,764,772

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The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses, with fixed or predetermined interest rates, as of September 30, 2026.

		Within One Year				After One Year but Within Three Years				After Three Years but Within Five Years				After Five Years but Within Fifteen Years				After Fifteen Years				Total
		(in thousands)
Real estate loans:
Commercial property
Retail		$	185,360			$	121,618			$	279,692			$	10,539			$	423			$	597,632
Hospitality			158,295				102,887				63,064				—				—				324,246
Office			144,538				153,697				46,290				—				—				344,525
Other			182,137				219,445				301,738				7,291				3,591				714,202
Total commercial property loans			670,330				597,647				690,784				17,830				4,014				1,980,605
Construction			—				—				—				—				—				—
Residential			1,353				—				329				6,033				259,735				267,450
Total real estate loans			671,683				597,647				691,113				23,863				263,749				2,248,055
Commercial and industrial loans			197,204				8,935				9,118				1,018				—				216,275
Equipment financing agreements			35,395				148,674				140,989				14,541				—				339,599
Total loans		$	904,282			$	755,256			$	841,220			$	39,422			$	263,749			$	2,803,929

The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses, with floating or variable interest rates (including floating, adjustable and hybrids), as of September 30, 2026.

		Within One Year				After One Year but Within Three Years				After Three Years but Within Five Years				After Five Years but Within Fifteen Years				After Fifteen Years				Total
		(in thousands)
Real estate loans:
Commercial property
Retail		$	34,174			$	220,927			$	143,710			$	70,129			$	83,778			$	552,718
Hospitality			105,755				169,268				221,965				43,118				19,331				559,437
Office			58,142				49,158				15,052				7,396				9,490				139,238
Other			140,401				228,198				345,153				64,967				33,749				812,468
Total commercial property loans			338,472				667,551				725,880				185,610				146,348				2,063,861
Construction			11,198				—				—				—								11,198
Residential			3,315				62				127				4,097				726,773				734,374
Total real estate loans			352,985				667,613				726,007				189,707				873,121				2,809,433
Commercial and industrial loans			231,109				226,703				290,503				206,678				346				955,339
Total loans		$	584,094			$	894,316			$	1,016,510			$	396,385			$	873,467			$	3,764,772

Industry

As of September 30, 2026, the loan portfolio included the following concentrations of loan types to borrowers in industries that represented greater than 10.0% of loans outstanding:

						Percentage of
		Balance as of				Loans Receivable
		September 30, 2026				Outstanding
		(in thousands)
Lessor of nonresidential buildings		$	1,611,491				24.5	%
Hospitality			879,096				13.4	%

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Loan Quality Indicators

Nonperforming Assets

Loans 30 to 89 days past due and still accruing decreased $4.6 million to $13.0 million at September 30, 2026, from $17.6 million at December 31, 2025.

Nonperforming loans consist of nonaccrual loans and loans 90 days or more past due and still accruing interest. Nonperforming assets consist of nonperforming loans and OREO. Loans are placed on nonaccrual status when, in the opinion of management, the full timely collection of principal or interest is in doubt. Generally, the accrual of interest is discontinued when principal or interest payments become more than 90 days past due, unless we believe the loan is adequately collateralized and in the process of collection. However, in certain instances, we may place a particular loan on nonaccrual status earlier, depending upon the individual circumstances surrounding the loan’s delinquency. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is reversed against current income. Subsequent collections of cash are applied as principal reductions when received, except when the ultimate collectability of principal is probable, in which case interest payments are credited to income. Nonaccrual loans may be restored to accrual status when principal and interest become current and full repayment is expected, which generally occurs after sustained payment of six months. Interest income is recognized on the accrual basis for loans not meeting the criteria for nonaccrual status. OREO consists of properties acquired by foreclosure or similar means.

Except for nonaccrual loans, management is not aware of any other loans as of September 30, 2026 for which known credit problems of the borrower would cause serious doubts as to the ability of such borrowers to comply with their present loan repayment terms, or any known events that would result in a loan being designated as nonperforming at some future date.

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Activity in nonperforming loans was as follows for the periods indicated:

		Three Months Ended September 30,
		2026				2025
		(in thousands)
Nonperforming Loans
Additions:
Downgrades		$	25,401			$	3,539
Reductions:
Upgrades			(1,744	)			(3,856	)
Charge-offs			(4,605	)			(2,502	)
Payoffs and paydowns			(946	)			(1,786	)
Transfer to loans held for sale			(18,011	)			—
Transfer to OREO			(1,084	)			(1,995	)
Increase (decrease)			(989	)			(6,600	)
Balance at beginning of period			9,931				25,967
Balance at end of period		$	8,942			$	19,367

		Nine Months Ended September 30,
		2026				2025
		(in thousands)
Nonperforming Loans
Additions:
Downgrades		$	35,345			$	34,298
Reductions:
Upgrades			(1,810	)			(5,036	)
Charge-offs			(7,962	)			(17,043	)
Payoffs and paydowns			(12,473	)			(5,129	)
Transfer to loans held for sale			(18,011	)			—
Transfer to OREO			(1,084	)			(1,995	)
Note sale			(3,175	)			—
Increase (decrease)			(9,170	)			5,095
Balance at beginning of period			18,112				14,272
Balance at end of period		$	8,942			$	19,367

Nonperforming loans decreased 50.6%, or $9.2 million, to $8.9 million at September 30, 2026 from $18.1 million at December 31, 2025. The decrease was primarily due to a $9.7 million payment received during the three months ended March 31, 2026 on a commercial real estate office loan that was designated as nonaccrual during the first quarter of 2025. Additionally, the $21.2 million commercial real estate loan mentioned previously was included in downgrades into nonperforming loans and subsequently included in charge-offs and transfers to loans held for sale during the three months ended September 30, 2026. As of September 30, 2026 and December 31, 2025, 1.0% and 1.3% of equipment financing agreements were on nonaccrual status, respectively. At September 30, 2026 and December 31, 2025, there were no loans 90 days or more past due and still accruing interest.

The $8.9 million of nonperforming loans as of September 30, 2026 had specific allowances of $1.9 million, compared with $18.1 million of nonperforming loans with specific allowances of $3.4 million as of December 31, 2025.

Nonperforming assets decreased $10.1 million to $10.0 million, or 0.12% of total assets, at September 30, 2026 from $20.1 million, or 0.26% of total assets at December 31, 2025. The $10.1 million decrease reflects the impact of the previously mentioned payment received on a commercial real estate office loan. Excluded from nonperforming assets is repossessed personal property associated with equipment finance agreements of $0.3 million and $0.6 million at September 30, 2026 and December 31, 2025, respectively.

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Criticized Loans

Activity in criticized loans was as follows for the periods indicated:

		Three Months Ended September 30,
		2026				2025
		(in thousands)
Special Mention
Additions:
Downgrades from pass loans		$	—			$	4,277
Upgrades from classified loans			425				—
Reductions:
Upgrades to pass loans			(11,197	)			—
Downgrades to classified loans			(594	)			—
Payoffs and paydowns			(576	)			(202	)
Charge-offs			(35	)			—
Increase (decrease)			(11,977	)			4,075
Balance at beginning of period			68,198				12,700
Balance at end of period		$	56,221			$	16,775
Classified
Downgrades		$	60,180			$	7,078
Reductions:
Upgrades			(1,731	)			(3,807	)
Payoffs and paydowns			(2,284	)			(3,970	)
Transfer to loans held for sale			(18,011	)			—
Charge-offs			(4,622	)			(2,574	)
Transfer to OREO			(1,084	)			(1,995	)
Increase (decrease)			32,448				(5,268	)
Balance at beginning of period			45,748				33,857
Balance at end of period		$	78,196			$	28,589

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		Nine Months Ended September 30,
		2026				2025
		(in thousands)
Special Mention
Additions:
Downgrades from pass loans		$	23,206			$	4,724
Upgrades from classified loans			425				—
Reductions:
Upgrades to pass loans			(12,552	)			(126,281	)
Downgrades to classified loans			(24,353	)			—
Payoffs and paydowns			(1,542	)			(1,281	)
Charge-offs			(76	)			—
Increase (decrease)			(14,892	)			(122,838	)
Balance at beginning of period			71,113				139,613
Balance at end of period		$	56,221			$	16,775
Classified
Downgrades		$	98,400			$	38,016
Reductions:
Upgrades			(1,760	)			(8,064	)
Payoffs and paydowns			(14,012	)			(7,835	)
Transfer to loans held for sale			(18,011	)			—
Charge-offs			(8,053	)			(17,216	)
Transfer to OREO			(1,084	)			(1,995	)
Note Sale			(3,175	)			—
Increase (decrease)			52,305				2,906
Balance at beginning of period			25,891				25,683
Balance at end of period		$	78,196			$	28,589

Special mention loans decreased $14.9 million to $56.2 million at September 30, 2026 from $71.1 million at December 31, 2025. The $14.9 million decrease reflected $24.4 million in downgrades from special mention to classified and $12.6 million in upgrades from special mention to pass, partially offset by $23.2 million of downgrades into special mention from pass. The $24.4 million of downgrades to the classified category and the $23.2 million of downgrades from the pass category both include a $21.2 million commercial real estate loan that was downgraded from pass to special mention in the first quarter, further downgraded to classified in the second quarter, and transferred to the held-for-sale category during the third quarter, at which time it incurred a $3.2 million charge-off. Subsequent to the end of the third quarter, the Bank completed the sale of the loan for $18.0 million (see Note 17 - Subsequent Events for more information). The $12.6 million in upgrades to the pass category includes an $11.2 million commercial and industrial loan in the retail industry that was upgraded during the third quarter of 2026.

Classified loans increased $52.3 million to $78.2 million at September 30, 2026 from $25.9 million at December 31, 2025. The $52.3 million increase was due primarily to the downgrade of two multifamily commercial real estate loans in New York City totaling $51.4 million, which became subject to a freeze on all rent increases during the third quarter of 2026. The loans were downgraded proactively, as both remained current on payments at September 30, 2026. Also included in classified loans activity for the nine months ended September 30, 2026 is the previously mentioned $21.2 million commercial real estate loan, net of the $3.2 million charge-off, transferred to held-for-sale at September 30, 2026.

Individually Evaluated Loans

The Company reviews loans on an individual basis when the loan does not share similar risk characteristics with loan pools. Individually evaluated loans are measured for expected credit losses based on the present value of expected cash flows discounted at the effective interest rate, the observable market price, or the fair value of collateral.

Individually evaluated loans increased $42.2 million to $60.3 million at September 30, 2026 from $18.1 million at December 31, 2025. Specific allowances associated with individually evaluated loans increased $3.7 million to $7.1 million at September 30, 2026, from $3.4 million at December 31, 2025.

Loan Modifications to Borrowers Experiencing Financial Difficulty

A borrower is experiencing financial difficulties when there is a probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. The Company may modify loans to borrowers experiencing financial

59

difficulties by providing principal forgiveness, a term extension, an other-than-insignificant payment delay, or an interest rate reduction.

The following table presents loan modifications made to borrowers experiencing financial difficulty by type of modification, with related amortized cost balances, respective percentage shares of the total class of loans, and the related financial effect, as of the period indicated:

		Interest Only/Principal Deferment
		Amortized Cost Basis				% of Total Class of Loans				Financial Effect
		(in thousands)
Nine months ended September 30, 2026
Commercial and industrial loans		$	4,998				0.4	%		One loan with 12-month interest only modification

The modified loan above was current at September 30, 2026. The Company has not committed to lend any additional amounts to the borrower included in the table above as of September 30, 2026. During the nine months ended September 30, 2026 and 2025, there were no payment defaults on loans modified within the preceding 12 months.

No loans were modified to borrowers experiencing financial difficulty during the three months ended September 30, 2026 or during the nine months ended September 30, 2025.

Allowance for Credit Losses and Allowance for Credit Losses Related to Off-Balance Sheet Items

The Company’s estimate of the allowance for credit losses at September 30, 2026 and December 31, 2025 reflected losses expected over the remaining contractual life of assets based on historical, current, and forward-looking information. The contractual life does not consider extensions, renewals or modifications.

Our allowance for credit losses incorporate a variety of risk considerations, both quantitative and qualitative, that management believes is appropriate to absorb lifetime credit losses at each reporting date. Quantitative factors include the general economic forecast in our markets, risk ratings, delinquency trends, collateral values, changes in nonperforming, criticized and classified loans, and other factors.

We use qualitative factors to adjust the allowance calculation for risks not considered by the quantitative calculations. Qualitative factors considered in our methodologies include concentrations of credit, changes in lending management and staff, and quality of the loan review system.

The Company reviews baseline and alternative economic scenarios from Moody’s (previously known as Moody’s Analytics, a subsidiary of Moody’s Corporation) for consideration in the quantitative portion of our analysis of the allowance for credit losses. Moody’s publishes a baseline forecast that represents the estimate of the most likely path for the United States economy through the current business cycle (50% probability that economic conditions will be worse and 50% probability that economic conditions will be better) as well as alternative scenarios to examine how different types of shocks will affect the future performance of the United States economy.

The Company utilizes a midpoint approach of multiple forward-looking scenarios to incorporate losses from a baseline, upside (stronger near-term growth) and downside (slower near-term growth) economy. As a result, the upside and downside scenarios each receive a weight of 30%, and the baseline receives a weight of 40%.

Certain quantitative and qualitative factors used to estimate credit losses and establish an allowance for credit losses are subject to uncertainty. The adequacy of our allowance for credit losses is sensitive to changes in current and forecasted economic conditions that may affect the ability of borrowers to make contractual payments as well as the value of the collateral securing such payments.

Although management believes it uses the best information available to establish the allowance for credit losses, future adjustments to the allowance for credit losses may be necessary and the Company’s results of operations could be adversely affected if circumstances differ substantially from the assumptions used in making the determinations.

In addition, because future events affecting borrowers and collateral cannot be predicted without uncertainty, the existing allowance for credit losses may not be adequate or increases may be necessary should the quality of any loans deteriorate as a result of the factors discussed. Any material increase in the allowance for credit losses would adversely impact the Company’s financial condition and results of operations.

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The following table reflects our allocation of the allowance for credit losses by loan category as well as the amount of loans in each loan category, including related percentages, as of the dates indicated:

		September 30, 2026																December 31, 2025
		Allowance								Loans								Allowance								Loans
		Amount				%				Amount				%				Amount				%				Amount				%
		(dollars in thousands)
Real estate loans:
Commercial property
Retail		$	8,424				11.9	%		$	1,150,350				17.5	%		$	9,999				14.3	%		$	1,132,439				17.3	%
Hospitality			7,086				10.0				883,683				13.5				8,737				12.5				847,989				12.9
Office			4,560				6.5				483,763				7.4				5,700				8.2				503,268				7.7
Other			19,834				28.1				1,526,670				23.2				14,078				20.1				1,532,667				23.4
Total commercial property loans			39,904				56.5				4,044,466				61.6				38,514				55.1				4,016,363				61.3
Construction			132				0.1				11,198				0.2				208				0.3				13,742				0.2
Residential			11,612				16.3				1,001,824				15.2				12,948				18.5				1,049,872				16.0
Total real estate loans			51,648				72.9				5,057,488				77.0				51,670				73.9				5,079,977				77.5
Commercial and industrial loans			8,117				11.5				1,171,614				17.8				7,792				11.1				1,074,908				16.4
Equipment financing agreements			11,045				15.6				339,599				5.2				10,441				15.0				408,483				6.1
Total		$	70,810				100.0	%		$	6,568,701				100.0	%		$	69,903				100.0	%		$	6,563,368				100.0	%

The following table sets forth certain ratios related to our allowance for credit losses at the dates presented:

		As of
		September 30, 2026				December 31, 2025
		(dollars in thousands)
Ratios:
Allowance for credit losses to loans			1.08	%			1.07	%
Nonaccrual loans to loans			0.14	%			0.28	%
Allowance for credit losses to nonaccrual loans			791.88	%			385.95	%
Balance:
Nonaccrual loans at end of period		$	8,942			$	18,112
Nonperforming loans at end of period		$	8,942			$	18,112

The allowance for credit losses increased $0.9 million to $70.8 million at September 30, 2026 from $69.9 million at December 31, 2025. The allowance attributed to individually evaluated loans increased $3.7 million to $7.1 million at September 30, 2026 from $3.4 million at December 31, 2025, respectively. The allowance attributed to collectively evaluated loans decreased $2.8 million to $63.7 million at September 30, 2026 from $66.5 million at December 31, 2025.

The allowance for credit losses related to off-balance sheet items, primarily unfunded loan commitments, decreased $0.5 million to $1.8 million at September 30, 2026 from $2.3 million at December 31, 2025. The Bank closely monitors each borrower’s repayment capabilities while funding existing commitments to ensure losses are minimized. Based on management’s evaluation and analysis of portfolio credit quality, prevailing economic conditions and economic forecasts, we believe these allowances were adequate for current expected lifetime losses in the loan portfolio and off-balance sheet exposure as of September 30, 2026.

The following table presents a summary of gross charge-offs and recoveries for the loan portfolio:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
		(in thousands)
Gross charge-offs		$	(5,024	)		$	(2,625	)		$	(10,088	)		$	(18,192	)
Gross recoveries			680				3,107				1,882				5,363
Net (charge-offs) recoveries		$	(4,344	)		$	482			$	(8,206	)		$	(12,829	)

Gross charge-offs increased $2.4 million to $5.0 million for the three months ended September 30, 2026 from $2.6 million for the three months ended September 30, 2025. Gross recoveries decreased $2.4 million to $0.7 million for the three months ended September 30, 2026 from $3.1 million for the three months ended September 30, 2025. Gross charge-offs for the three months ended

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September 30, 2026 included a $3.2 million charge-off of a $21.2 million commercial real estate loan upon its transfer to the held-for-sale category. Gross charge-offs for the three months ended September 30, 2026 and 2025 included $1.4 million and $2.4 million of equipment finance agreement charge-offs, respectively. Gross recoveries for the three months ended September 30, 2026 and 2025 included $0.6 million and $0.8 million of recoveries on equipment finance agreements, respectively.

Gross charge-offs decreased $8.1 million to $10.1 million for the nine months ended September 30, 2026 from $18.2 million for the nine months ended September 30, 2025. Gross recoveries decreased $3.5 million to $1.9 million for the nine months ended September 30, 2026 from $5.4 million for the nine months ended September 30, 2025. Gross charge-offs for the nine months ended September 30, 2026 and 2025 included $5.9 million and $8.1 million of equipment finance agreement charge-offs, respectively. Gross charge-offs for the nine months ended September 30, 2025 also included an $8.6 million charge-off of a commercial real estate loan. Gross recoveries for the nine months ended September 30, 2026 and 2025 included $1.7 million and $2.2 million of recoveries on equipment financing agreements, respectively.

The following table presents a summary of net (charge-offs) recoveries by loan category:

		Commercial Real Estate Loans				Residential Mortgage Loans				Commercial and Industrial Loans				Equipment Finance Agreements				Total
		(dollars in thousands)
Three Months Ended September 30, 2026
Average Loans		$	4,017,696			$	996,823			$	1,090,135			$	355,169			$	6,459,823
Net (Charge-Offs) Recoveries		$	(3,170	)		$	(215	)		$	(151	)		$	(808	)		$	(4,344	)
Net (Charge-Offs) Recoveries to Average Loans (1)			(0.32	)%			(0.09	)%			(0.06	)%			(0.91	)%			(0.27	)%
Three Months Ended September 30, 2025
Average Loans		$	3,934,476			$	1,029,213			$	904,019			$	436,727			$	6,304,435
Net (Charge-Offs) Recoveries		$	(8,422	)		$	8,355			$	2,105			$	(1,556	)		$	482
Net (Charge-Offs) Recoveries to Average Loans (1)			(0.86	)%			3.25	%			0.93	%			(1.43	)%			0.03	%
Nine Months Ended September 30, 2026
Average Loans		$	3,989,706			$	1,015,043			$	1,060,241			$	380,434			$	6,445,424
Net Charge-Offs		$	(3,219.0	)		$	(241	)		$	(478	)		$	(4,268	)		$	(8,206	)
Net Charge-Offs to Average Loans (1)			(0.11	)%			(0.03	)%			(0.06	)%			(1.50	)%			(0.17	)%
Nine Months Ended September 30, 2025
Average Loans		$	3,950,295			$	998,521			$	840,404			$	461,770			$	6,250,990
Net (Charge-Offs) Recoveries		$	(8,169	)		$	(65	)		$	1,306			$	(5,901	)		$	(12,829	)
Net (Charge-Offs) Recoveries to Average Loans (1)			(0.28	)%			(0.01	)%			0.21	%			(1.70	)%			(0.27	)%

(1)Annualized

Net loan charge-offs increased $4.8 million to $4.3 million, or 0.27% of average loans, for the three months ended September 30, 2026 from net recoveries of $0.5 million, or 0.03% of average loans, for the three months ended September 30, 2025. Net loan charge-offs decreased $4.6 million to $8.2 million, or 0.17% of average loans for the nine months ended September 30, 2026 from $12.8 million, or 0.27% of average loans, for the nine months ended September 30, 2025.

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Deposits

The following table shows the composition of deposits by type as of the dates indicated:

		September 30, 2026								December 31, 2025
		Balance				Percent				Balance				Percent
		(dollars in thousands)
Demand – noninterest-bearing		$	2,146,060				30.5	%		$	2,015,212				30.3	%
Interest-bearing:
Demand			85,521				1.1				74,799				1.1
Money market and savings			2,192,054				31.1				2,084,218				31.3
Uninsured amount of time deposits more than $250,000:
Three months or less (1)			405,675				5.7				317,086				4.7
Over three months through six months (2)			255,525				3.6				276,791				4.1
Over six months through twelve months			230,208				3.3				156,750				2.3
Over twelve months			19				—				159				—
All other insured time deposits (3)			1,740,712				24.7				1,752,635				26.2
Total deposits		$	7,055,774				100.0	%		$	6,677,650				100.0	%

(1)Includes State of California time deposits of $90.8 million and $90.6 million at September 30, 2026 and December 31, 2025, respectively.

(2)Includes State of California time deposits of $90.5 million and $60.2 million at September 30, 2026 and December 31, 2025, respectively.

(3)Includes brokered deposits of $86.9 million and $88.5 million at September 30, 2026 and December 31, 2025, respectively.

Total deposits increased 5.7%, or $378.1 million, to $7.06 billion at September 30, 2026 from $6.68 billion at December 31, 2025. While all deposit types increased, growth was primarily driven by a $130.8 million increase in noninterest-bearing demand deposits and a $128.7 million increase in time deposits. At September 30, 2026, the loan-to-deposit ratio was 93.1% compared to 98.3% at December 31, 2025.

As of September 30, 2026 and December 31, 2025, the aggregate amount of uninsured deposit accounts (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) was $3.25 billion and $2.92 billion, respectively. For time deposits, the aggregate amount exceeding the insurance limit was $891.4 million and $750.8 million, respectively. Other uninsured deposits, such as demand and money market and savings deposits, were $2.36 billion and $2.17 billion, respectively. At September 30, 2026 and December 31, 2025, $1.64 billion and $1.34 billion of total uninsured deposits, respectively, were in accounts with balances of $5.0 million or more.

The Bank’s wholesale funds historically consisted of FHLB advances, brokered deposits, and State of California time deposits. As of September 30, 2026, the Bank had no outstanding FHLB advances, compared with $150.0 million of FHLB advances as of December 31, 2025. During the third quarter of 2026, the Company entered into a pay-fixed, receive-variable interest rate swap designated as a cash flow hedge of interest rate risk on our State of California time deposits, which had a total balance of $181.3 million at September 30, 2026. See “Note 15 – Derivatives and Hedging Activities" for more details.

Borrowings and Subordinated Debentures

Borrowings mostly take the form of FHLB advances. At September 30, 2026, there were no outstanding FHLB advances. At December 31, 2025, FHLB advances were $150.0 million, all of which were term advances. Funds from deposit growth not used to fund loan production were used to pay off borrowings. The weighted-average interest rate of all FHLB advances at December 31, 2025 was 4.02%. There were no FHLB advances outstanding at any month-end date during the nine months ended September 30, 2026. The maximum amount of FHLB advances outstanding at any month-end date during the nine months ended September 30, 2025 was $150.0 million. There were no contractual maturities of FHLB advances greater than twelve months at December 31, 2025.

Subordinated debentures decreased $54.4 million to $76.1 million at September 30, 2026 from $130.5 million at December 31, 2025. During the third quarter of 2026, the Company issued $55.0 million of 6.50% Fixed-to-Floating Subordinated Notes with a maturity date of July 31, 2036 and redeemed all $110.0 million of existing Fixed-to-Floating subordinated debentures, which had a maturity date of September 1, 2031. See “Note 8 – Borrowings and Subordinated Debentures” for more details.

Subordinated debentures included fixed-to-floating subordinated notes of $54.1 million and $108.7 million as of September 30, 2026 and December 31, 2025, respectively, and junior subordinated deferrable interest debentures of $22.0 million

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and $21.7 million as of September 30, 2026 and December 31, 2025, respectively. During the third quarter of 2026, the Company purchased an interest rate cap derivative designated as a cash flow hedge of interest rate risk on its junior subordinated debentures. See “Note 15 – Derivatives and Hedging Activities" for more details.

Stockholders’ Equity

Stockholders’ equity increased $11.9 million to $808.3 million at September 30, 2026 from $796.4 million at December 31, 2025. The increase included net income of $69.7 million and share-based compensation of $2.6 million, partially offset by $25.2 million of dividends paid, $14.4 million in share repurchases, a $19.8 million increase in unrealized after-tax losses on securities available for sale, and $1.6 million in shares purchased to satisfy employees’ tax liabilities for the vesting of stock compensation. The Company repurchased 496,755 shares of common stock during the nine months ended September 30, 2026, at an average share price of $29.08. At September 30, 2026, 1,840,447 shares remain under the Company’s share repurchase program.

Interest Rate Risk Management

The spread between interest income on interest-earning assets and interest expense on interest-bearing liabilities is the principal component of net interest income, and interest rate changes substantially affect our financial performance. We emphasize capital protection through stable earnings. In order to achieve stable earnings, we prudently manage our assets and liabilities and closely monitor the percentage changes in net interest income and equity value in relation to limits established within our guidelines.

The Company performs simulation modeling to estimate the potential effects of interest rate changes. The following table summarizes one of the stress simulations performed to forecast the impact of changing interest rates on net interest income and the value of interest-earning assets and interest-bearing liabilities reflected on our balance sheet (i.e., an instantaneous parallel shift in the yield curve of the magnitude indicated below) as of September 30, 2026. The Company compares this stress simulation to policy limits, which specify the maximum tolerance level for net interest income exposure over 1- to 12-month and 13- to 24- month horizons, given the basis point adjustment in interest rates reflected below.

		Net Interest Income Simulation
		1- to 12-Month Horizon								13- to 24-Month Horizon
Change in Interest		Dollar				Percentage				Dollar				Percentage
Rates (Basis Points)		Change				Change				Change				Change
		(dollars in thousands)
300		$	44,113				14.32	%		$	58,461				18.17	%
200		$	30,457				9.89	%		$	40,506				12.59	%
100		$	15,572				5.05	%		$	21,116				6.56	%
(100)		$	(15,734	)			(5.11	%)		$	(23,138	)			(7.19	%)
(200)		$	(30,536	)			(9.91	%)		$	(48,764	)			(15.16	%)
(300)		$	(40,491	)			(13.14	%)		$	(72,271	)			(22.47	%)

		Economic Value of Equity (EVE)
Change in Interest		Dollar				Percentage
Rates (Basis Points)		Change				Change
		(dollars in thousands)
300		$	47,905				3.95	%
200		$	43,698				3.60	%
100		$	29,881				2.46	%
(100)		$	(47,709	)			(3.94	%)
(200)		$	(114,990	)			(9.49	%)
(300)		$	(187,673	)			(15.48	%)

The estimated sensitivity does not necessarily represent our forecast, and the results may not be indicative of actual changes to our net interest income. These estimates are based upon a number of assumptions, including the timing and magnitude of interest rate changes, prepayments on loans and securities, pricing strategies on loans and deposits, and replacement of asset and liability cash flows.

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The key assumptions, based upon loans, securities and deposits, are as follows:

	Conditional prepayment rates*:
	Loans receivable					15	%
	Securities					6	%
	Deposit rate betas*:
	NOW, savings, money market demand					49	%
	Time deposits, retail and wholesale					76	%
	* Balance-weighted average

While the assumptions used are based on current economic and local market conditions, there is no assurance as to the predictive nature of these conditions, including how customer preferences or competitor influences might change.

Capital Resources and Liquidity

Capital Resources

Historically, our primary source of capital has been the retention of operating earnings. In order to ensure adequate capital levels, the Board regularly assesses projected sources and uses of capital, expected loan growth, anticipated strategic actions (such as stock repurchases and dividends), and projected capital thresholds under adverse and severely adverse economic conditions. In addition, the Board considers the Company’s access to capital from financial markets through the issuance of additional debt and securities, including common stock or notes, to meet its capital needs.

The Company’s ability to pay dividends to stockholders depends in part upon dividends it receives from the Bank. California law restricts the amount available for cash dividends to the lesser of a bank’s retained earnings or net income for its last three fiscal years (less any distributions to stockholders made during such period). Where the above test is not met, cash dividends may still be paid, with the prior approval of the Department of Financial Protection and Innovation (“DFPI”), in an amount not exceeding the lesser of: (1) retained earnings of the Bank; or (2) net income of the Bank for its last three fiscal years, less the amount of any distributions made by the Bank or by any majority-owned subsidiary of the Bank to the shareholders of the Bank during such period. The Company paid dividends of $25.2 million ($0.84 per share) for the nine months ended September 30, 2026 and $32.6 million ($1.08 per share) for the year 2025. As of October 1, 2026, the Bank had the ability to pay dividends of approximately $26.4 million, after giving effect to the $0.28 dividend declared on October 29, 2026, for the fourth quarter of 2026, without the prior approval of the Commissioner of the DFPI.

At September 30, 2026, the Bank’s total risk-based capital ratio of 14.30%, Tier 1 risk-based capital ratio of 13.25%, common equity Tier 1 capital ratio of 13.25% and Tier 1 leverage capital ratio of 11.43% placed the Bank in the “well capitalized” category pursuant to capital rules, which is defined as institutions with a total risk-based capital ratio equal to or greater than 10.00%, Tier 1 risk-based capital ratio equal to or greater than 8.00%, common equity Tier 1 capital ratios equal to or greater than 6.50%, and Tier 1 leverage capital ratio equal to or greater than 5.00%.

At September 30, 2026, the Company’s total risk-based capital ratio was 14.43%, Tier 1 risk-based capital ratio was 12.58%, common equity Tier 1 capital ratio was 12.27% and Tier 1 leverage capital ratio was 10.82%.

For a discussion of the applicable capital adequacy framework, see "Regulation and Supervision - Capital Adequacy Requirements" in our 2025 Annual Report on Form 10-K.

Liquidity

For a discussion of liquidity for the Company, see Note 14 - Liquidity, included in the notes to unaudited consolidated financial statements in this Report, and Note 22 – Liquidity in our 2025 Annual Report on Form 10-K.

Off-Balance Sheet Arrangements

For a discussion of off-balance sheet arrangements, see Note 12 - Off-Balance Sheet Commitments included in the notes to unaudited consolidated financial statements in this Report and “Item 1. Business - Off-Balance Sheet Commitments” in our 2025 Annual Report on Form 10-K.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

For quantitative and qualitative disclosures regarding market risks, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk Management” in this Report.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Management is responsible for the disclosure controls and procedures of the Company. Disclosure controls and procedures are controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods required by the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of the Company's management, including the Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on that evaluation, the Company's Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of September 30, 2026.

Changes in Internal Control over Financial Reporting

There were no changes in the Company's internal control over financial reporting (as defined in Rule 13a-15(f)) during the quarter ended September 30, 2026 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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Part II — Other Information

Item 1. Legal Proceedings

From time to time, Hanmi Financial and its subsidiaries are parties to litigation that arises in the ordinary course of business, such as claims to enforce liens, claims involving the origination and servicing of loans, and other issues related to the business of Hanmi Financial and its subsidiaries. In the opinion of management, the resolution of any such issues would not have a material adverse impact on the financial condition, results of operations, or liquidity of Hanmi Financial or its subsidiaries.

Item 1A. Risk Factors

There have been no material changes in risk factors applicable to the Company from those described in “Risk Factors” in Part I, Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

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

On April 25, 2024, the Company announced that the Board of Directors has adopted a stock repurchase program under which the Company may repurchase up to 5% of its outstanding shares, or approximately 1.5 million shares of its common stock. On January 29, 2026, the Board of Directors authorized an expansion of the stock repurchase program, adding 1.5 million shares that may be repurchased under the current program. As of September 30, 2026, 1,840,447 shares remained available for future purchases under that stock repurchase program. The program has no scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time.

The following table represents information with respect to repurchases of common stock made by the Company during the three months ended September 30, 2026:

Purchase Date:		Total Number of Shares Purchased				Average Price Paid Per Share				Total Number of Shares Purchased as Part of Publicly Announced Program				Maximum Shares That May Yet Be Purchased Under the Program
July 1, 2026 - July 31, 2026			—			$	—				—				1,991,495
August 1, 2026 - August 31, 2026			88,200			$	31.74				88,200				1,903,295
September 1, 2026 - September 30, 2026			62,848			$	31.85				62,848				1,840,447
Total			151,048			$	31.79				151,048

The Company acquired 2,416 shares from employees in connection with the satisfaction of employee tax withholding obligations incurred through the vesting of Company stock awards for the three months ended September 30, 2026. Shares withheld to satisfy income taxes upon the vesting of stock awards are repurchased pursuant to the terms of the applicable plan and not under the Company’s repurchase program.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Securities Trading Plans of Directors and Executive Officers

During the three months ended September 30, 2026, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Hanmi securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”

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Item 6. Exhibits

Exhibit Number		Document
4.1		Form of 6.50% Fixed-to-Floating Rate Subordinated Note due 2036 of Hanmi Financial Corporation (incorporated by reference herein to Exhibit 4.1 from Hanmi Financial Corporation's Current Report on Form 8-K as filed with the SEC on July 31, 2026).
10.1		Form of Subordinated Note Purchase Agreement, dated as of July 30, 2026, by and between Hanmi Financial Corporation and the several Purchasers (incorporated by reference herein to Exhibit 10.1 from Hanmi Financial Corporation's Current Report on Form 8-K as filed with the SEC on July 31, 2026).
31.1		Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document *
101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents *
104		The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, formatted in Inline XBRL

* Attached as Exhibit 101 to this report are documents formatted in Inline XBRL (Extensible Business Reporting Language).

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

				Hanmi Financial Corporation
Date:		November 6, 2026		By:		/s/ Bonita I. Lee
						Bonita I. Lee
						President and Chief Executive Officer (Principal Executive Officer)

Date:		November 6, 2026		By:		/s/ Romolo C. Santarosa
						Romolo C. Santarosa
						Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer)

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