Annual report pursuant to Section 13 and 15(d)

Employee Benefits

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Employee Benefits
 12 Months Ended
Dec. 31, 2011
Employee Benefits  
EMPLOYEE BENEFITS

NOTE 15 — EMPLOYEE BENEFITS

401(k) Plan

We have a Section 401(k) plan for the benefit of substantially all of our employees. We match 75 percent of participant contributions to the 401(k) plan up to 8 percent of each 401(k) plan participant’s annual compensation. For the years ended December 31, 2011, 2010 and 2009, contributions to the 401(k) plan were $1.0 million, $992,000 and $1.1 million, respectively.

Bank-Owned Life Insurance

In 2001 and 2004, we purchased single premium life insurance policies called bank-owned life insurance covering certain officers. The Bank is the beneficiary under the policy. In the event of the death of a covered officer, we will receive the specified insurance benefit from the insurance carrier.

 

Deferred Compensation Plan

Effective November 1, 2006, the Board of Directors approved the Hanmi Financial Corporation Deferred Compensation Plan (the “DCP”). The DCP is a non-qualified deferred compensation program for directors and certain key employees whereby they may defer a portion of annual compensation for payment upon retirement of the amount deferred plus a guaranteed return. The DCP is unfunded. As of December 31, 2011 and 2010, the liability for the deferred compensation plan and interest thereon was $6,000 and $78,000, respectively.