Annual report pursuant to Section 13 and 15(d)

Acquisition

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Acquisition
 12 Months Ended
Dec. 31, 2017
Business Combinations [Abstract]  
Acquisitions
Acquisitions
Acquisition of Certain Leases of Irvine, California-based Banc of California
On October 27, 2016, the Bank acquired certain leases of Irvine, California-based Banc of California. The acquisition included the purchase of equipment leases diversified across the U.S. with concentrations in California, Georgia and Texas. This transaction was considered a purchase of a business in accordance with current accounting guidance and accordingly the Bank applied the acquisition method of accounting to the transaction.
Cash consideration paid was $240.8 million and the net estimated fair value of the equipment lease portfolio was $228.2 million as of the acquisition date. In addition to the leases, the Bank recorded other tangible and intangible assets of $12.6 million. The intangible assets included an identifiable intangible asset representing the estimated fair value of third-party originators ("TPO") of $483,000 and goodwill of $11.0 million. The TPO intangible is being amortized over its estimated useful life of 7 years.
Acquisition of Central Bancorp, Inc.
On August 31, 2014, Hanmi Financial completed its acquisition of Central Bancorp, Inc. ("CBI"), the parent company of United Central Bank. A core deposit intangible (“CDI”) of $2.2 million was recognized for the core deposits acquired from CBI. The CDI is amortized over its useful life of approximately 10 years on an accelerated basis and reviewed for impairment as circumstances warrant. The CDI amortization expense for the years ended December 31, 2017, 2016 and 2015 was $280,000, $326,000 and $379,000, respectively. Additionally, a premium of $11.3 million was recognized for certificates of deposit acquired from CBI. The accretion of time deposit premium for the years ended December 31, 2017, 2016 and 2015 was $473,000, $2.7 million and $5.6 million, respectively. A discount of $8.3 million was recognized for subordinated debentures assumed in the CBI acquisition, which will be amortized over their contractual term. The amortization of discount for the years ended December 31, 2017, 2016 and 2015 was $329,000, $275,000 and $176,000, respectively.