Hanmi Financial Corp. Files 2023 Annual Report (10-K)

TL;DR

<b>Hanmi Financial Corp. has submitted its 2023 10-K annual report detailing financial performance and business operations.</b>

AI Summary

HANMI FINANCIAL CORP (HAFC) filed a Annual Report (10-K) with the SEC on February 29, 2024. Hanmi Financial Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers financial performance and business operations for the period. Key financial data and risk factors are detailed within the report. The company is incorporated in Delaware and headquartered in Los Angeles, CA. The report includes information on various financial instruments and loan portfolios.

Why It Matters

For investors and stakeholders tracking HANMI FINANCIAL CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Hanmi Financial Corp.'s financial health, operational performance, and strategic positioning for the fiscal year 2023. Investors and analysts can use this report to assess the company's financial stability, identify potential risks, and evaluate future growth prospects in the commercial banking sector.

Risk Assessment

Risk Level: medium — HANMI FINANCIAL CORP shows moderate risk based on this filing. The company's business is subject to various risks inherent in the banking industry, including credit risk, interest rate risk, and regulatory changes, as detailed in the extensive risk factors section of the 10-K.

Analyst Insight

Review the detailed financial statements and risk factor disclosures in the 10-K to understand Hanmi Financial Corp.'s performance and potential challenges.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240229 — Filing Date (FILED AS OF DATE)
• 146 — Public Document Count (CONFORMED SUBMISSION TYPE)
• 000-30421 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• HANMI FINANCIAL CORP (company) — FILER
• 0000950170-24-022986 (other) — ACCESSION NUMBER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240229 (date) — FILED AS OF DATE
• 0001109242 (company) — CENTRAL INDEX KEY
• 6021 (other) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (other) — STATE OF INCORPORATION
• LOS ANGELES (location) — CITY

FAQ

Risk Factors

• Credit Risk [high — financial]: The company is exposed to credit risk, which is the risk of loss resulting from borrowers' failure to meet their contractual obligations.
• Interest Rate Risk [high — financial]: Fluctuations in interest rates can adversely affect the company's net interest income and the fair value of its financial instruments.
• Regulatory and Compliance Risk [medium — regulatory]: The banking industry is highly regulated, and changes in laws, regulations, or supervisory policies could impact the company's operations and profitability.
• Economic Conditions [medium — market]: Adverse changes in general economic conditions, particularly in the markets where the company operates, could negatively affect its business and financial results.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-29: Filing Date — Date the 10-K was officially filed with the SEC.

Key Financial Figures

• $0.001 — nge on Which Registered Common Stock, $0.001 Par Value HAFC Nasdaq Global Select
• $12.0 million — . As of December 31, 2023, the Bank had $12.0 million of SBA loans held for sale and $176.9 m
• $176.9 million — million of SBA loans held for sale and $176.9 million of SBA loans in its loan portfolio, and
• $539.6 million — n its loan portfolio, and was servicing $539.6 million of SBA loans sold to investors. 6 O

Filing Documents

• hafc-20231231.htm (10-K) — 8659KB
• hafc-ex21_1.htm (EX-21.1) — 5KB
• hafc-ex23_1.htm (EX-23.1) — 5KB
• hafc-ex31_1.htm (EX-31.1) — 15KB
• hafc-ex31_2.htm (EX-31.2) — 15KB
• hafc-ex32_1.htm (EX-32.1) — 10KB
• hafc-ex32_2.htm (EX-32.2) — 10KB
• hafc-ex97_1.htm (EX-97.1) — 34KB
• img141930037_0.jpg (GRAPHIC) — 223KB
• 0000950170-24-022986.txt (&nbsp;) — 39836KB
• hafc-20231231.xsd (EX-101.SCH) — 3091KB
• hafc-20231231_htm.xml (XML) — 11830KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 25 Item 1C. Cybersecurity 25 Item 2.

Properties

Properties 27 Item 3.

Legal Proceedings

Legal Proceedings 27 Item 4. Mine Safety Disclosures 27 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 28 Item 6. [RESERVED] 29 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 46 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 47 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 47 Item 9A.

Controls and Procedures

Controls and Procedures 47 Item 9B. Other Information 48 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 48 Part III Item 10. Directors, Executive Officers and Corporate Governance 49 Item 11.

Executive Compensation

Executive Compensation 49 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 49 Item 13. Certain Relationships and Related Transactions, and Director Independence 49 Item 14. Principal Accounting Fees and Services 49 Part IV Item 15. Exhibits and Financial Statement Schedules 50 Item 16. Form 10-K Summary 50 Index to Consolidated Financial Statements 51 Report of Independent Registered Public Accounting Firm 52 Consolidated Balance Sheets as of December 31, 2023 and 2022 55 Consolidated Statements of Income for the Years Ended December 31, 2023, 2022 and 2021 56 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2023, 2022 and 2021 57 Consolidated Statements of Changes in Stockholders' Equity for the Years Ended December 31, 2023, 2022 and 2021 58 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2022 and 2021 59

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 60 Exhibit Index 105

Signatures

Signatures 108 1 Cautionary Note Regarding Forward-Looking Statements Some of the statements contained in this Annual Report on Form 10-K (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 position 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 expectations and 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. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, strategies, outlook, needs, plans, objectives or achievements to differ from those expressed or implied by the forward-looking statements. These factors include: failure to maintain adequate levels of capital and liquidity to support our operations; changes in liquidity, including the size and composition of the Hanmi B

Business

Item 1. Business General Hanmi Financial Corporation ("Hanmi Financial," the "Company," "we," "us" or "our") is a Delaware corporation incorporated on March 14, 2000 to be the holding company for Hanmi Bank (the "Bank") and is subject to the Bank Holding Company Act of 1956, as amended (the "BHCA"). Our principal office is located at 900 Wilshire Boulevard, Suite 1250, Los Angeles, California 90017, and our telephone number is (213) 382-2200. Hanmi Bank, the primary subsidiary of Hanmi Financial, is a state-chartered bank incorporated under the laws of the State of California on August 24, 1981, and licensed pursuant to the California Financial Code ("California Financial Code"). The Bank's deposit accounts are insured under the Federal Deposit Insurance Act up to applicable limits thereof. The California Department of Financial Protection and Innovation (the "DFPI") is the Bank's primary state bank regulator and the FDIC is its primary federal regulator. The Bank's headquarters are located at 3660 Wilshire Boulevard, Penthouse Suite A, Los Angeles, California 90010. The Bank is a community bank conducting general business banking, with its primary market encompassing the Korean-American community and other multi-ethnic communities across California, Colorado, Georgia, Illinois, New Jersey, New York, Texas, Virginia and Washington. The Bank's full-service offices are located in markets where many of the businesses are owned by immigrants and other minority groups. The Bank's client base reflects the multi-ethnic composition of these communities. The Bank's revenues are derived primarily from interest and fees on loans, interest and dividends on the securities portfolio, service charges on deposit accounts and sales of SBA loans. A summary of revenues for the periods indicated follows: Year Ended December 31, 2023 2022 2021 (dollars in thousands) Interest and fees on loans receivable $ 339,811 84.3 % $ 257,878 83.8 % $ 208,

View Full Filing

View this 10-K filing on SEC EDGAR