Annual report pursuant to Section 13 and 15(d)

Regulatory Matters

v3.24.0.1
Regulatory Matters
 12 Months Ended
Dec. 31, 2023
Regulatory Capital Requirements Under Banking Regulations [Abstract]  
Regulatory Matters

Note 13 — Regulatory Matters

Risk-Based Capital

Federal bank regulatory agencies require bank holding companies and banks to maintain a minimum ratio of qualifying total capital to risk-weighted assets of 8.00% and a minimum ratio of Tier 1 capital to risk-weighted assets of 6.00%. 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 4.00%.

In order for banks to be considered “well capitalized,” federal bank regulatory agencies require them to maintain a minimum ratio of qualifying total capital to risk-weighted assets of 10.00% and a minimum ratio of Tier 1 capital to

risk-weighted assets of 8.00%. 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 5.00%.

At December 31, 2023, the Bank’s capital ratios exceeded the minimum requirements to place the Bank in the “well capitalized” category and the Company exceeded all of its applicable minimum regulatory capital ratio requirements.

A capital conservation buffer of 2.50% 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 6.27% and 5.86% and the Company's capital conservation buffer was 6.20% and 5.71% as of December 31, 2023 and 2022, respectively.

 

The capital ratios of Hanmi Financial and the Bank as of December 31, 2023 and 2022 were as follows:

 

 

 

Actual

 

 

Minimum Regulatory
Requirement

 

 

Minimum to be
Categorized as
“Well Capitalized”

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

 

(dollars in thousands)

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk-weighted assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanmi Financial

 

$

947,286

 

 

 

14.95

%

 

$

506,891

 

 

 

8.00

%

 

N/A

 

 

N/A

 

Hanmi Bank

 

$

904,153

 

 

 

14.27

%

 

$

506,741

 

 

 

8.00

%

 

$

633,426

 

 

 

10.00

%

Tier 1 capital (to risk-weighted assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanmi Financial

 

$

773,179

 

 

 

12.20

%

 

$

380,168

 

 

 

6.00

%

 

N/A

 

 

N/A

 

Hanmi Bank

 

$

840,046

 

 

 

13.26

%

 

$

380,056

 

 

 

6.00

%

 

$

506,741

 

 

 

8.00

%

Common equity Tier 1 capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanmi Financial

 

$

751,516

 

 

 

11.86

%

 

$

285,126

 

 

 

4.50

%

 

N/A

 

 

N/A

 

Hanmi Bank

 

$

840,046

 

 

 

13.26

%

 

$

285,042

 

 

 

4.50

%

 

$

411,727

 

 

 

6.50

%

Tier 1 capital (to average assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanmi Financial

 

$

773,179

 

 

 

10.37

%

 

$

298,277

 

 

 

4.00

%

 

N/A

 

 

N/A

 

Hanmi Bank

 

$

840,046

 

 

 

11.32

%

 

$

296,948

 

 

 

4.00

%

 

$

371,185

 

 

 

5.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital (to risk-weighted assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanmi Financial

 

$

901,239

 

 

 

14.49

%

 

$

497,508

 

 

 

8.00

%

 

N/A

 

 

N/A

 

Hanmi Bank

 

$

860,503

 

 

 

13.86

%

 

$

496,607

 

 

 

8.00

%

 

$

620,758

 

 

 

10.00

%

Tier 1 capital (to risk-weighted assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanmi Financial

 

$

728,344

 

 

 

11.71

%

 

$

373,131

 

 

 

6.00

%

 

N/A

 

 

N/A

 

Hanmi Bank

 

$

797,608

 

 

 

12.85

%

 

$

372,455

 

 

 

6.00

%

 

$

496,607

 

 

 

8.00

%

Common equity Tier 1 capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanmi Financial

 

$

707,101

 

 

 

11.37

%

 

$

279,848

 

 

 

4.50

%

 

N/A

 

 

N/A

 

Hanmi Bank

 

$

797,608

 

 

 

12.85

%

 

$

279,341

 

 

 

4.50

%

 

$

403,493

 

 

 

6.50

%

Tier 1 capital (to average assets):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanmi Financial

 

$

728,344

 

 

 

10.07

%

 

$

289,311

 

 

 

4.00

%

 

N/A

 

 

N/A

 

Hanmi Bank

 

$

797,608

 

 

 

11.07

%

 

$

288,110

 

 

 

4.00

%

 

$

360,137

 

 

 

5.00

%