Matthew D. Fuhr
About Matthew D. Fuhr
Executive Vice President and Chief Credit Officer (CCO) of Hanmi Bank since April 2023; previously EVP & Chief Credit Administration Officer (since March 2017) and SVP & Deputy Chief Credit Officer (June 2015–March 2017). Age 62; B.A. in Business Administration (Finance), University of Northern Colorado; prior roles include 13 years as Senior Vice President & Credit Administrator at Pacific Western Bank and Commissioned Bank Examiner at the FDIC . Under his credit leadership, Hanmi reported ROAA of 0.83%, non‑performing assets/total assets of 0.19% (max AIP attainment), and efficiency ratio of 60.31% for 2024; net income was $62.2M and total shareholder return was nearly 29% in 2024 versus ~15% for the S&P Small Cap 600 Bank Index .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Hanmi Bank | EVP & Chief Credit Administration Officer | Mar 2017–Apr 2023 | Led enterprise credit administration; supported lending unit initiatives and strategic projects tied to portfolio management and asset quality . |
| Hanmi Bank | SVP & Deputy Chief Credit Officer | Jun 2015–Mar 2017 | Strengthened credit oversight framework prior to promotion; portfolio monitoring and risk management . |
| Pacific Western Bank | SVP & Credit Administrator | ~13 years | Oversaw credit administration; long‑tenured management of asset quality and underwriting . |
| Federal Deposit Insurance Corporation | Commissioned Bank Examiner | Prior to Pacific Western | Regulatory examinations; safety and soundness, credit review experience . |
External Roles
No external board or corporate roles disclosed in the 2025 proxy .
Fixed Compensation
Multi‑year compensation (USD):
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | $292,277 | $309,814 | $314,609 |
| Stock Awards (grant‑date fair value) | $84,010 | $118,749 | $149,457 |
| Non‑Equity Incentive (AIP cash) | $157,304 | $127,026 | $143,506 |
| All Other Compensation | $34,343 | $35,665 | $36,619 |
| Total | $567,935 | $591,254 | $644,191 |
Base salary remained unchanged in 2024 at $314,609; the CHR Committee left NEO base salaries flat to prioritize merit increases for non‑executive employees .
Performance Compensation
Annual Incentive Plan (AIP) – 2024
Target bonus 45% of salary; total achieved 101% of target; payout 45.61% of base salary ($143,506) .
| Metric | Weight | Threshold | Target | Maximum | Actual | Achievement/Payout |
|---|---|---|---|---|---|---|
| ROAA | 20% | 0.66% | 0.83% | 0.91% | 0.83% | 20.0% |
| NPA/Assets | 20% | 0.42% | 0.35% | 0.28% | 0.19% | 30.0% |
| Efficiency Ratio | 10% | 63.62% | 57.84% | 54.95% | 60.31% | 7.9% |
| Risk Management | 20% | Exam/audit results | Exam/audit results | Exam/audit results | Satisfactory (per policy) | 20.0% |
| Strategic Plan/Project | 20% | Implementation targets | Implementation targets | Implementation targets | Achieved per plan | 18.5% |
| Discretionary | 10% | Personal performance | Personal performance | Personal performance | Resolution/recoveries, asset quality | 5.0% |
Corporate financial goal attainment used for all NEOs in 2024: ROAA at target (100%), NPA/Assets at maximum (150%), efficiency ratio above threshold (79%) .
Long‑Term Equity Incentives
Design: 45% time‑based restricted stock (RS), 55% performance‑based RSUs (PSUs) tied to 3‑year TSR vs KBW Regional Banking Index (threshold 35th percentile → 50% payout; target 50th → 100%; max 75th → 150%; capped at target if absolute TSR is negative) .
2024 grants (April 1, 2024):
- Time‑based RS: 4,621 shares; vests in 3 equal annual installments starting first anniversary; grant‑date fair value $71,579 .
- PSUs: Target 5,446 units (threshold 2,723; max 8,169); grant‑date fair value $77,878; valuation per‑unit $14.30 (Monte Carlo) .
Prior PSU outcomes:
- 2021 PSUs vested in March 2024 at 92.06% of target based on 48th percentile relative TSR (company TSR −10.77%); Fuhr earned 1,926 shares .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 36,145 shares; includes 3,000 options presently exercisable . |
| % of shares outstanding | Approx. 0.12% (36,145 vs 30,217,915 outstanding as of Apr 2, 2025) . |
| Unvested time‑based RS | 508 (2022 grant), 1,669 (2023 grant), 4,621 (2024 grant); aggregate market value $164,569 at $23.62 close (Dec 31, 2024) . |
| Unvested PSUs (target) | 1,841 (2022 cycle), 3,081 (2023 cycle); market values $43,484 and $72,773 at $23.62 . |
| 2024 PSUs (max reference) | 8,169 (maximum reference for disclosure); market value $192,952 at $23.62 . |
| Options | 3,000 options exercisable at $24.83, expire 6/22/2025 . |
| Hedging/pledging | Prohibited for executives; no margin or pledging allowed . |
| Ownership guidelines | Formal stock ownership guidelines apply to CEO (5x salary) and CFO (1.5x salary); not specified for CCO; CEO/CFO in compliance . |
Note: Outstanding equity award market values use $23.62 close as of Dec 31, 2024, per proxy methodology .
Employment Terms
- Status: At‑will (no individual employment agreement disclosed); post‑employment cash severance not provided for executives other than CEO/CFO .
- Equity treatment: Under the 2021 Plan, time‑based RS and PSUs generally vest upon a change in control only if followed by termination without Cause or for Good Reason; PSUs vest based on actual performance through termination and are pro‑rated where applicable .
- Illustrative CIC/termination values (as of Dec 31, 2024):
- Termination without Cause/for Good Reason: accelerated equity $122,449 .
- Qualifying termination in connection with change in control: accelerated equity $454,363 .
- Clawback: SEC/Nasdaq‑compliant clawback policy adopted in 2023; recovery of erroneously awarded incentive compensation over prior 3 fiscal years; no indemnification or insurance reimbursement permitted .
- Insider trading, hedging, pledging: Strict prohibitions; Section 16(a) filings were generally timely, with noted late reports tied to April 1, 2024 annual restricted stock grants to Section 16 officers .
Compensation Committee Analysis
- CHR Committee fully independent; oversees pay philosophy, incentives, succession, clawback, risk assessment .
- Consultant: Aon Human Capital Solutions; determined independent; assisted with peer group construction and benchmarking .
- Peer group: 20 regional banks (e.g., TriCo Bancshares, CVB Financial, Westamerica Bancorporation, ConnectOne Bancorp, etc.); used to inform design levels without targeting a fixed percentile .
- Governance practices: Majority at‑risk pay; diversified performance measures; clawback; no dividend accrual on unvested performance awards; no excise tax gross‑ups; anti‑hedging/pledging .
SAY‑ON‑PAY & Shareholder Feedback
- 2024 Say‑on‑Pay support: 94.6% approval .
- Engagement: Management invited 15 stockholders (~60% of shares) to discuss compensation/governance; responses from several investors; ongoing two‑way communication reported .
Investment Implications
- Alignment: AIP metrics emphasize ROAA, NPA/Assets and efficiency—credit‑quality and profitability focus aligns with Fuhr’s remit; 2024 corporate outcomes hit target/max on ROAA and NPA/Assets, supporting pay‑for‑performance claims .
- Retention/pressure: Three‑year pro‑rata vesting for RS and 3‑year TSR PSUs promote retention; CCO is at‑will and lacks cash severance, limiting “golden parachute” risk; vesting requires CIC+termination, reducing acceleration risk absent displacement .
- Selling signals: No 2024 option exercises by Fuhr; one option tranche expires June 2025, modest in size (3,000), limiting forced‑sale pressure; noted late Section 16 filings were administrative around grant timing, not sales .
- Governance risk: Robust clawback and anti‑hedging/pledging policies, strong Say‑on‑Pay support, and independent CHR oversight mitigate governance red flags; CEO/CFO ownership guidelines reinforce top‑team alignment, while CCO alignment is via ongoing equity grants and credit‑centric KPIs .
- Execution: Company asset quality improved (NPA/Assets 0.19%) and ROAA met target despite efficiency ratio headwinds; Fuhr’s long tenure in credit administration and regulatory background suggest continued discipline through credit cycles .