Hanmi Financial Corporation Annual report pursuant to Section 13 and 15(d)

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

The table below provides the share-based compensation expense and related tax benefits for the periods indicated:

	Year Ended December 31,
	2019		2018		2017
Share-based compensation expense	$	3,125	$	3,515	$	2,893
Related tax benefits	$	941	$	984	$	1,179

The following information under the Plans is presented for the periods indicated:

	Year Ended December 31,
	2019		2018		2017
Fair value of options vested	$	—	$	184	$	820
Total intrinsic value of options exercised (1)	$	842	$	—	$	432
Cash received from options exercised	$	2,979	$	—	$	288

⁽¹⁾	Intrinsic value represents the difference between the closing stock price on the exercise date and the exercise price, multiplied by the number of options.

The following is a summary of stock option transactions under the Plans for the periods indicated:

	Year Ended December 31,
	2019					2018					2017
	Number of Shares			Weighted- Average Exercise Price Per Share		Number of Shares			Weighted- Average Exercise Price Per Share		Number of Shares			Weighted- Average Exercise Price Per Share
Options outstanding at beginning of period		338,338		$	17.52		364,088		$	17.86		387,901		$	17.49
Options granted		—		$	—		—		$	—		—		$	—
Options exercised		(181,900	)	$	16.38		(25,750	)	$	22.06		(23,813	)	$	12.21
Options forfeited		—		$	—		—		$	—		—		$	—
Options expired		—		$	—		—		$	—		—		$	—
Options outstanding at end of period		156,438		$	18.84		338,338		$	17.52		364,088		$	17.86
Options exercisable at end of period		156,438		$	18.84		338,338		$	17.52		354,753		$	17.71

The following is a summary of transactions for non-vested stock options under the Plans for the periods indicated:

	Year Ended December 31,
	2019				2018					2017
	Number of Shares		Weighted- Average Exercise Price Per Share		Number of Shares			Weighted- Average Exercise Price Per Share		Number of Shares			Weighted- Average Exercise Price Per Share
Non-vested options outstanding at beginning of period		—	$	—		9,335		$	23.47		46,340		$	22.42
Options granted		—	$	—		—		$	—		—		$	—
Options vested		—	$	—		(9,335	)	$	23.47		(37,005	)	$	22.16
Options forfeited		—	$	—		—		$	—		—		$	—
Non-vested options outstanding at end of period		—	$	—		—		$	—		9,335		$	23.47

As of December 31, 2019, stock options outstanding under the Plans were as follows:

	Options Outstanding							Options Exercisable
	Number of Shares		Intrinsic Value (1)		Weighted- Average Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life	Number of Shares		Intrinsic Value (1)		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life
$10.80 to $14.99		10,438	$	78	$	12.54	2.9 years		10,438	$	78	$	12.54	2.9 years
$15.00 to $19.99		85,000		270		16.82	3.8 years		85,000		270		16.82	3.8 years
$20.00 to $24.83		61,000		—		22.73	4.8 years		61,000		—		22.73	4.8 years
		156,438	$	348	$	18.84			156,438	$	924	$	18.84

⁽¹⁾	Intrinsic value represents the difference between the closing stock price on the last trading day of the period, which was $20.00 as of December 31, 2019, and the exercise price, multiplied by the number of options. This value is presented in thousands.

The table below provides information for restricted stock awards under the 2013 Plan for the periods indicated:

	2019					2018					2017
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share		Number of Shares			Weighted- Average Grant Date Per Share		Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Restricted stock at beginning of period		304,595		$	21.98		317,783		$	21.09		343,958		$	16.60
Restricted stock granted		181,204		$	22.05		156,771		$	25.02		127,239		$	31.06
Restricted stock vested		(99,527	)	$	27.56		(106,674	)	$	27.11		(139,298	)	$	18.73
Restricted stock forfeited		(90,071	)	$	13.78		(63,285	)	$	15.38		(14,116	)	$	24.73
Restricted stock at end of period		296,201		$	22.91		304,595		$	21.98		317,783		$	21.09