Quarterly report pursuant to Section 13 or 15(d)

Regulatory Matters

v3.19.3
Regulatory Matters
 9 Months Ended
Sep. 30, 2019
Banking and Thrift [Abstract]  
Regulatory Matters Regulatory Matters

Federal bank regulatory agencies require bank holding companies and banks to maintain a minimum ratio of qualifying total capital to risk-weighted assets of 8.0 percent and a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0 percent. In addition to the risk-based guidelines, federal bank regulatory agencies require bank holding companies and banks to maintain a minimum ratio of Tier 1 capital to average assets, referred to as the leverage ratio, of 4.0 percent.

In order for banks to be considered “well capitalized,” federal bank regulatory agencies require a minimum ratio of qualifying total capital to risk-weighted assets of 10.0 percent and a minimum ratio of Tier 1 capital to risk-weighted assets of 8.0 percent. In addition to the risk-based guidelines, federal bank regulatory agencies require depository institutions to maintain a minimum ratio of Tier 1 capital to average assets, referred to as the leverage ratio, of 5.0 percent.

At September 30, 2019, the Bank’s capital ratios exceeded the minimum requirements for the Bank to be considered “well capitalized” and the Company exceeded all of its applicable minimum regulatory capital ratio requirements.

A capital conservation buffer of 2.5% became effective on January 1, 2019, and must be met to avoid limitations on the ability of the Bank to pay dividends, repurchase shares or pay discretionary bonuses. The Bank's capital conservation buffer was 6.65% and 6.19% and the Company's capital conservation buffer was 5.91% and 5.74% as of September 30, 2019 and December 31, 2018, respectively.

The capital ratios of Hanmi Financial and the Bank as of September 30, 2019 and December 31, 2018 were as follows:
 
Actual
 
Minimum
Regulatory
Requirement
 
Minimum to Be
Categorized as
“Well Capitalized”
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
(dollars in thousands)
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
717,941

 
15.07
%
 
$
381,070

 
8.00
%
 
N/A

 
N/A

Hanmi Bank
$
695,826

 
14.65
%
 
$
379,905

 
8.00
%
 
$
474,882

 
10.00
%
Tier 1 capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
567,397

 
11.91
%
 
$
285,803

 
6.00
%
 
N/A

 
N/A

Hanmi Bank
$
643,571

 
13.55
%
 
$
284,929

 
6.00
%
 
$
379,905

 
8.00
%
Common equity Tier 1 capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
547,454

 
11.49
%
 
$
214,352

 
4.50
%
 
N/A

 
N/A

Hanmi Bank
$
643,571

 
13.55
%
 
$
213,697

 
4.50
%
 
$
308,673

 
6.50
%
Tier 1 capital (to average assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
567,397

 
10.43
%
 
$
217,528

 
4.00
%
 
N/A

 
N/A

Hanmi Bank
$
643,571

 
11.86
%
 
$
217,080

 
4.00
%
 
$
271,351

 
5.00
%
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
682,398

 
14.54
%
 
$
375,449

 
8.00
%
 
N/A

 
N/A

Hanmi Bank
$
664,195

 
14.19
%
 
$
374,538

 
8.00
%
 
$
468,173

 
10.00
%
Tier 1 capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
550,839

 
11.74
%
 
$
281,587

 
6.00
%
 
N/A

 
N/A

Hanmi Bank
$
630,782

 
13.47
%
 
$
280,904

 
6.00
%
 
$
374,538

 
8.00
%
Common equity Tier 1 capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
531,177

 
11.32
%
 
$
211,190

 
4.50
%
 
N/A

 
N/A

Hanmi Bank
$
630,782

 
13.47
%
 
$
210,678

 
4.50
%
 
$
304,312

 
6.50
%
Tier 1 capital (to average assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
550,839

 
10.18
%
 
$
216,526

 
4.00
%
 
N/A

 
N/A

Hanmi Bank
$
630,782

 
11.67
%
 
$
216,265

 
4.00
%
 
$
270,331

 
5.00
%