Quarterly report pursuant to Section 13 or 15(d)

Regulatory Matters

v3.19.1
Regulatory Matters
 3 Months Ended
Mar. 31, 2019
Banking and Thrift [Abstract]  
Regulatory Matters
Regulatory Matters

Federal bank regulatory agencies require bank holding companies and banks to maintain a minimum ratio of qualifying total capital to risk-weighted assets of 8.0 percent and a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0 percent. 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 4.0 percent.

In order for banks to be considered “well capitalized,” federal bank regulatory agencies require a minimum ratio of qualifying total capital to risk-weighted assets of 10.0 percent and a minimum ratio of Tier 1 capital to risk-weighted assets of 8.0 percent. 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 5.0 percent.

At March 31, 2019, 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 2.5% became effective on January 1, 2019, and 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 6.37% and 6.19% and the Company's capital conservation buffer was 5.94% and 5.74% as of March 31, 2019 and December 31, 2018, respectively.

The capital ratios of Hanmi Financial and the Bank as of March 31, 2019 and December 31, 2018 were as follows:
 
Actual
 
Minimum
Regulatory
Requirement
 
Minimum to Be
Categorized as
“Well Capitalized”
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
(dollars in thousands)
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
667,875

 
14.17
%
 
$
377,044

 
8.00
%
 
 N/A

 
N/A

Hanmi Bank
$
676,526

 
14.37
%
 
$
376,735

 
8.00
%
 
$
470,919

 
10.00
%
Tier 1 capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
562,650

 
11.94
%
 
$
282,783

 
6.00
%
 
 N/A

 
N/A

Hanmi Bank
$
642,529

 
13.64
%
 
$
282,551

 
6.00
%
 
$
376,735

 
8.00
%
Common equity Tier 1 capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
542,895

 
11.52
%
 
$
212,087

 
4.50
%
 
 N/A

 
N/A

Hanmi Bank
$
642,529

 
13.64
%
 
$
211,913

 
4.50
%
 
$
306,097

 
6.50
%
Tier 1 capital (to average assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
562,650

 
10.39
%
 
$
216,708

 
4.00
%
 
 N/A

 
N/A

Hanmi Bank
$
642,529

 
11.88
%
 
$
216,428

 
4.00
%
 
$
270,535

 
5.00
%
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
682,398

 
14.54
%
 
$
375,449

 
8.00
%
 
 N/A

 
N/A

Hanmi Bank
$
664,195

 
14.19
%
 
$
374,538

 
8.00
%
 
$
468,173

 
10.00
%
Tier 1 capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
550,839

 
11.74
%
 
$
281,587

 
6.00
%
 
 N/A

 
N/A

Hanmi Bank
$
630,782

 
13.47
%
 
$
280,904

 
6.00
%
 
$
374,538

 
8.00
%
Common equity Tier 1 capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
531,177

 
11.32
%
 
$
211,190

 
4.50
%
 
 N/A

 
N/A

Hanmi Bank
$
630,782

 
13.47
%
 
$
210,678

 
4.50
%
 
$
304,312

 
6.50
%
Tier 1 capital (to average assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
550,839

 
10.18
%
 
$
216,526

 
4.00
%
 
 N/A

 
N/A

Hanmi Bank
$
630,782

 
11.67
%
 
$
216,265

 
4.00
%
 
$
270,331

 
5.00
%