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

Annual report pursuant to Section 13 and 15(d)

Share-based Compensation (Tables)

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation Expense and Related Tax Benefits

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


	Year Ended December 31,
	2014		2013		2012
	(In thousands)
Share-based compensation expense	$	2,165	$	705	$	478
Related tax benefits	$	516	$	32	$	201

Unrecognized Share-Based Compensation Expense

As of December 31, 2014, unrecognized share-based compensation expense was as follows:


	Unrecognized Expense		Average Expected Recognition Period
	(In thousands)
Stock option awards	$	1,349		1.8 years
Restricted stock awards		2,609		2.2 years

Total unrecognized share-based compensation expense	$	3,958		2.1 years

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,
	2014			2013			2012
Weighted-average assumption
Dividend yield		1.27	%		1.61	%		—
Expected volatility		35.18	%		43.67	%		65.23	%
Expected term		3.0 years			3.0 years			3.0 years
Risk-free interest rate		0.86	%		0.79	%		0.32	%

Summary of Information under Plans

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


	Year Ended December 31,
	2014		2013		2012
	(In thousands, except per share data)
Grant date fair value of options granted	$	583	$	1,053	$	1,197
Fair value of options vested	$	2,141	$	920	$	911
Total intrinsic value of options exercised ⁽¹⁾	$	353	$	485	$	6
Cash received from options exercised	$	467	$	525	$	10
Weighted-average estimated fair value per share of options granted	$	4.79	$	4.48	$	5.40

⁽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,
	2014					2013					2012
	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		546,595		$	28.09		342,950		$	37.44		143,325		$	81.27
Options granted		158,000		$	21.30		305,000		$	16.43		221,750		$	12.54
Options exercised		(37,569	)	$	12.42		(46,113	)	$	11.37		(1,250	)	$	8
Options forfeited		(30,917	)	$	14.64		(36,566	)	$	12.50		(5,375	)	$	8.61
Options expired		(32,237	)	$	106.70		(18,676	)	$	81.20		(15,500	)	$	98.76

Options outstanding at end of period		603,872		$	23.78		546,595		$	28.09		342,950		$	37.44

Options exercisable at end of period		224,766		$	33.35		154,970		$	59.77		159,762		$	66.19

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,
	2014					2013					2012
	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		391,625		$	15.56		183,188		$	12.37		35,850		$	25.20
Options granted		158,000		$	21.30		305,000		$	16.43		221,750		$	12.54
Options vested		(139,602	)	$	15.34		(59,997	)	$	12.14		(69,037	)	$	13.20
Options forfeited		(30,917	)	$	14.64		(36,566	)	$	12.50		(5,375	)	$	8.61

Non-vested options outstanding at end of period		379,106		$	18.11		391,625		$	15.56		183,188		$	12.37

Summary of Stock Options Outstanding under Plans

As of December 31, 2014, 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		573,022	$	2,853	$	16.88		8.6 years		193,916	$	1,422	$	14.47		8.0 years
$50.00 to $99.99		—		—		—		—		—		—		—		—
$100.00 to $149.99		19,600		—		142.37		1.2 years		19,600		—		142.37		1.2 years
$150.00 to $173.04		11,250		—		168.86		1.8 years		11,250		—		168.86		1.8 years

		603,872	$	2,853	$	23.78		8.3 years		224,766	$	1,422	$	33.35		7.1 years

⁽¹⁾

Intrinsic value represents the difference between the closing stock price on the last trading day of the period, which was $21.81 as of December 31, 2014, 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:


	2014					2013					2012
	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		116,082		$	16.43		10,500		$	10.83		19,725		$	11.66
Restricted stock granted		119,988		$	21.56		116,332		$	16.55		—			—
Restricted stock vested		(53,515	)	$	17.61		(7,000	)	$	10.75		(7,225	)	$	13.78
Restricted stock forfeited		(9,333	)	$	17.05		(3,750	)	$	15.30		(2,000	)	$	8.32

Restricted stock at end of period		173,222		$	19.58		116,082		$	16.43		10,500		$	10.83