HANMI FINANCIAL CORP Segments Disclosure
Note 24 — Segment Reporting
The Company has one reportable segment, Banking, as determined by the , 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 assessment performance and in establishing compensation. Loans, investments, and deposits 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.
Accounting policies for the banking segment are the same as those described in Note 1 - Summary of Significant Accounting Policies. Segment performance is evaluated using consolidated net income.
The following table presents information reported internally for performance assessment by the chief operating decision maker for the following periods:
|
|
Banking Segment |
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|
|
Year Ended December 31, |
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|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
(in thousands) |
|
|||||||||
Net interest income |
|
$ |
236,190 |
|
|
$ |
202,774 |
|
|
$ |
221,271 |
|
Noninterest income |
|
|
33,975 |
|
|
|
31,585 |
|
|
|
34,179 |
|
Segment revenues |
|
|
270,165 |
|
|
|
234,359 |
|
|
|
255,450 |
|
Other revenues |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total consolidated revenues |
|
|
270,165 |
|
|
|
234,359 |
|
|
|
255,450 |
|
|
|
|
|
|
|
|
|
|
|
|||
Less: |
|
|
|
|
|
|
|
|
|
|||
Credit loss expense |
|
|
14,439 |
|
|
|
4,419 |
|
|
|
4,342 |
|
Noninterest expenses |
|
|
147,799 |
|
|
|
141,335 |
|
|
|
136,527 |
|
Income tax expense |
|
|
31,838 |
|
|
|
26,404 |
|
|
|
34,540 |
|
Segment net income |
|
|
76,089 |
|
|
|
62,201 |
|
|
|
80,041 |
|
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation of profit: |
|
|
|
|
|
|
|
|
|
|||
Adjustments and reconciling items |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consolidated net income |
|
|
76,089 |
|
|
|
62,201 |
|
|
|
80,041 |
|
|
|
|
|
|
|
|
|
|
|
|||
Segment assets |
|
|
7,869,185 |
|
|
|
7,677,925 |
|
|
|
7,570,341 |
|
Other assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consolidated assets |
|
$ |
7,869,185 |
|
|
$ |
7,677,925 |
|
|
$ |
7,570,341 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.