HANMI FINANCIAL CORP

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.