Hanmi Financial in Los Angeles disclosed that its bank recently received a “needs to improve” rating tied to the Community Reinvestment Act.
The $6.4 billion-asset company said in a Friday regulatory filing that the rating, issued by the Federal Deposit Insurance Corp., covers the period between March 29, 2018 and May 3, 2021.
The rating results in restrictions on certain types of expansion, including some acquisitions and the establishment and relocation of branches. The rating will also result in a loss of expedited processing of applications to undertake certain activities.
The restrictions will remain in place at least until the bank’s next CRA rating is publicly released.
“We are disappointed with this rating given Hanmi Bank’s deep commitment to the diverse communities which we serve,” Bonnie Lee, the company’s president and CEO, said in the filing.
Hanmi “was founded to help underserved immigrant communities and we are proud of our strong track record of lending to, investing in, and serving low- and moderate-income communities, especially throughout the challenging pandemic period,” Lee added.
Lee said the bank is committed to improve the rating, adding that it had developed a “comprehensive plan to enhance our CRA effort.”