HANMI FINANCIAL CORP

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.