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

Annual report pursuant to Section 13 and 15(d)

Share-based Compensations (Tables)

Share-based Compensations (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation Expense and Related Tax Benefits

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


	Year Ended December 31,
	2013		2012		2011
	(In thousands)
Share-based compensation expense	$	705	$	478	$	608
Related tax benefits	$	32	$	201	$	256

Unrecognized Share-Based Compensation Expense

As of December 31, 2013, unrecognized share-based compensation expense was as follows:


	Unrecognized Expense		Average Expected Recognition Period
	(In thousands)
Stock option awards	$	1,538		2.4 years
Restricted stock awards		1,666		2.7 years

Total unrecognized share-based compensation expense	$	3,204		2.5 years

Weighted-Average Estimated Fair Value Per Share of Options Granted under Plans

The weighted-average estimated fair value per share of options granted under the Plans was as follows:


	Year Ended December 31,
	2013		2012		2011
Weighted-average estimated fair value per share of options granted	$	4.48	$	5.40	$	6.23

Weighted-Average Assumptions Used to Estimate Fair Value Per Share of Options Granted

The weighted-average fair value per share of options granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:


	Year Ended December 31,
	2013			2012			2011
Weighted-average assumption
Dividend yield		1.61	%		—			—
Expected volatility		43.67	%		65.23	%		103.76	%
Expected term		3.0 years			3.0 years			3.2 years
Risk-free interest rate		0.79	%		0.32	%		1.04	%

Summary of Information under Plans

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


	Year Ended December 31,
	2013		2012		2011
	(In thousands, except per share data)
Grant date fair value of options granted	$	1,053	$	1,197	$	156
Fair value of options vested	$	728	$	911	$	1,272
Total intrinsic value of options exercised ⁽¹⁾	$	485	$	6	$	—
Cash received from options exercised	$	525	$	10	$	—
Weighted-average estimated fair value per share of options granted	$	4.48	$	5.40	$	6.23

⁽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.

Summary of Stock Option Transactions under Plans

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


	Year Ended December 31,
	2013					2012					2011
	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		342,950		$	37.44		143,325		$	81.27		133,361		$	95.45
Options granted		305,000		$	16.43		221,750		$	12.54		25,000		$	9.88
Options exercised		(46,113	)	$	11.37		(1,250	)	$	8.32		—		$	—
Options forfeited		(36,566	)	$	12.50		(5,375	)	$	8.61		(425	)	$	64.89
Options expired		(18,676	)	$	81.20		(15,500	)	$	98.76		(14,611	)	$	39.09

Options outstanding at end of period		546,595		$	28.09		342,950		$	37.44		143,325		$	81.27

Options exercisable at end of period		154,970		$	59.77		159,762		$	66.19		107,475		$	104.25

Summary of Transactions for Non-Vested Stock Options

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


	Year Ended December 31,
	2013					2012					2011
	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		183,188		$	12.37		35,850		$	25.20		33,775		$	17.68
Options granted		305,000		$	16.43		221,750		$	12.54		25,000		$	9.88
Options vested		(59,997	)	$	12.14		(69,037	)	$	13.20		(22,500	)	$	56.54
Options forfeited		(36,566	)	$	12.50		(5,375	)	$	8.61		(425	)	$	64.89

Non-vested options outstanding at end of period		391,625		$	15.56		183,188		$	12.37		35,850		$	25.20

Summary of Stock Options Outstanding under Plans

As of December 31, 2013, stock options outstanding under the Plans were as follows:


	Options Outstanding								Options Exercisable
	Number of Shares		Intrinsic Value *(1)*		Weighted- 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
					(In thousands except share and per share data)
$10.80 to $49.99		486,195	$	3,384	$	14.93		9.27 years		94,570	$	904	$	12.33		8.43 years
$50.00 to $99.99		—		—		—		—		—		—		—		—
$100.00 to $149.99		49,150		—		126.07		1.28 years		49,150		—		126.07		1.28 years
$150.00 to $173.04		11,250		—		168.86		2.81 years		11,250		—		168.86		2.81 years

		546,595	$	3,384	$	28.09		8.41 years		154,970	$	904	$	59.77		5.76 years

⁽¹⁾

Intrinsic value represents the difference between the closing stock price on the last trading day of the period, which was $21.89 as of December 31, 2013, and the exercise price, multiplied by the number of options.

Schedule of Restricted Stock Awards under 2013 Plan

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


	2013					2012					2011
	Number of Shares			Weighted- Average Grant Date Fair Value Per Share		Number of Shares			Weighted- Average Grant Date Fair Value Per Share		Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Restricted stock at beginning of period		10,500		$	10.83		19,725		$	11.66		18,200		$	14.38
Restricted stock granted		116,332		$	16.55		—		$	—		10,000		$	9.88
Restricted stock vested		(7,000	)	$	10.75		(7,225	)	$	13.78		(8,475	)	$	15.41
Restricted stock forfeited		(3,750	)	$	15.30		(2,000	)	$	8.32		—		$	—

Restricted stock at end of period		116,082		$	16.43		10,500		$	10.83		19,725		$	11.66