Quarterly report pursuant to Section 13 or 15(d)

Regulatory Matters

v2.4.1.9
Regulatory Matters
 3 Months Ended
Mar. 31, 2015
Banking and Thrift [Abstract]  
Regulatory Matters

Note 11 — Regulatory Matters

Risk-Based Capital

In July 2013, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation approved the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revise minimum capital requirements and adjust prompt corrective action thresholds. The rules also revise the regulatory capital elements, add a new common equity Tier I capital ratio, and increase the minimum Tier I capital ratio requirement. The revisions permit banking organizations to retain, through a one-time election, the existing treatment for accumulated other comprehensive income. Additionally, a new rule on the capital conservation buffer will be implemented beginning January 1, 2016. Under the final rules, institutions are subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if certain capital levels fall below newly required amounts. The rules became effective January 1, 2015 for smaller, non-complex banking organizations with full implementation of certain deductions and adjustments to regulatory capital through January 1, 2019.

 

The capital ratios of Hanmi Financial and the Bank as of March 31, 2015 and December 31, 2014 were as follows:

 

                  Minimum     Minimum to Be  
                  Regulatory     Categorized as  
     Actual     Requirement     “Well Capitalized”  
     Amount      Ratio     Amount      Ratio     Amount      Ratio  
     (In thousands)  

March 31, 2015

                

Total capital (to risk-weighted assets):

                

Hanmi Financial

    $ 493,598         15.40 %    $ 252,777         8.00 %      N/A         N/A   

Hanmi Bank

    $ 482,965         15.33 %    $ 252,348         8.00 %    $ 315,435         10.00 % 

Tier 1 capital (to risk-weighted assets):

                

Hanmi Financial

    $ 454,582         14.15 %    $ 189,583         6.00 %      N/A         N/A   

Hanmi Bank

    $ 443,946         14.08 %    $ 189,261         6.00 %    $ 252,348         8.00 % 

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

                

Hanmi Financial

    $ 454,582         14.15 %    $ 142,187         4.50 %      N/A         N/A   

Hanmi Bank

    $ 443,946         14.08 %    $ 141,946         4.50 %    $ 205,033         6.50 % 

Tier 1 capital (to average assets):

                

Hanmi Financial

    $ 454,582         10.78 %    $ 165,895         4.00 %      N/A         N/A   

Hanmi Bank

    $ 443,946         10.72 %    $ 165,710         4.00 %    $ 207,137         5.00 % 

December 31, 2014

                

Total capital (to risk-weighted assets):

                

Hanmi Financial

    $ 493,598         15.89 %    $ 248,501         8.00 %      N/A         N/A   

Hanmi Bank

    $ 470,934         15.18 %    $ 248,157         8.00 %    $ 310,196         10.00 % 

Tier 1 capital (to risk-weighted assets):

                

Hanmi Financial

    $ 454,582         14.63 %    $ 124,250         4.00 %      N/A         N/A   

Hanmi Bank

    $ 431,971         13.93 %    $ 124,078         4.00 %    $ 186,118         6.00 % 

Tier 1 capital (to average assets):

                

Hanmi Financial

    $ 454,582         10.91 %    $ 166,600         4.00 %      N/A         N/A   

Hanmi Bank

    $ 431,971         10.39 %    $ 166,332         4.00 %    $ 207,915         5.00 %