XML 38 R16.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Junior Subordinated Debentures | 12 Months Ended
--- | ---
Dec. 31, 2011
Junior Subordinated Debentures [Abstract] |
JUNIOR SUBORDINATED DEBENTURES | NOTE 10 — JUNIOR SUBORDINATED DEBENTURES During the first half of 2004, we issued three junior subordinated notes to finance the purchase of Pacific Union Bank. The outstanding subordinated debentures related to these offerings totaled $82.4 million at December 31, 2011 and 2010 as follows:
Description |  | Issuance (1) |  |  | Trust Preferred Securities Outstanding |  |  | Interest Rate as of December 31, 2011 |  |  | Adjustable |  |  | Interest Rate Basis |  |  | Junior Subordinated Debt Owed to Trusts (2) |  |  | Final Maturity Date |
|  |  |  |  | (In Thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hanmi Capital Trust I |  |  | 1/8/2004 |  |  | $ | 30,000 |  |  |  | 3.30% |  |  |  | Adjustable quarterly |  |  |  | LIBOR + 2.90 | % |  | $ | 30,928 |  |  |  | 1/15/2034 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3 month |  |  |  |  |  |  |  |  |
Hanmi Capital Trust II |  |  | 3/15/2004 |  |  | $ | 30,000 |  |  |  | 3.44% |  |  |  | Adjustable quarterly |  |  |  | LIBOR + 2.90 | % |  | $ | 30,928 |  |  |  | 3/15/2034 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3 month |  |  |  |  |  |  |  |  |
Hanmi Capital Trust III |  |  | 4/28/2004 |  |  | $ | 20,000 |  |  |  | 3.33% |  |  |  | Adjustable quarterly |  |  |  | LIBOR + 2.63 | % |  | $ | 20,619 |  |  |  | 4/30/2034 |
(1) | Each issue of junior subordinated debentures may be redeemed in whole or in part by us after five years from the first interest payment date.
(2) | Junior subordinated debt includes the funding cost of $69,000
Each of the trusts is a capital or statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in our junior subordinated debentures. The trust preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payments of the junior subordinated debentures held by the trust. The common securities of each trust are wholly-owned by us. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon our making payment on the related junior subordinated debentures. The debentures, which are the only assets of each trust, are subordinate and junior in right of payment to all of our present and future senior indebtedness. We have fully and unconditionally guaranteed each trust’s obligations under the trust securities issued by such trust to the extent not paid or made by each trust, provided that such trust has funds available for such obligations. Under the provisions of each issue of the junior subordinated debentures, we have the right to defer payment of interest on the debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on either issue of the junior subordinated debentures are deferred, the distributions on the applicable trust preferred securities will also be deferred. However, the interest due would continue to accrue during any such interest payment deferral period. In October 2008, we committed to the FRB that no interest payments on the junior subordinated debentures would be made without the prior written consent of the FRB. Therefore, in order to preserve its capital position, Hanmi Financial’s Board of Directors has elected to defer quarterly interest payments on its outstanding junior subordinated debentures until further notice, beginning with the interest payment that was due on January 15, 2009. In addition, we are prohibited from making interest payments on our outstanding junior subordinated debentures under the terms of our recently issued regulatory enforcement actions without the prior written consent of the FRB and DFI. Accrued interest payable on junior subordinated debentures amounted to $9.8 million and $6.9 million at December 31, 2011 and December 31, 2010, respectively. Upon the termination of regulatory enforcement actions, management intends to pay interest in arrears on junior subordinated debentures to bring them current. The trust preferred securities issued by the trusts are included in our Tier 1 capital for regulatory purposes, subject to quantitative and qualitative limits. Under the rules issued by FRB, restricted core capital elements (including trust preferred securities and qualifying perpetual preferred stock) can be no more than 25 percent of core capital, net of goodwill and associated deferred tax liability. The amount of such excess trust preferred securities are includable in Tier 2 capital. Each of the trusts issuing the trust preferred securities holds junior subordinated debentures we issued with a 30-year maturity. The final rules provide that in the last five years before the junior subordinated debentures mature, the associated trust preferred securities will be excluded from Tier 1 capital and included in Tier 2 capital, subject (together with subordinated debt and certain other investments) to an aggregate limit of 50 percent of Tier 1 capital. In addition, under the regulations, the trust preferred securities during this five-year period would be amortized out of Tier 2 capital by one-fifth each year and excluded from Tier 2 capital completely during the year prior to maturity of the debentures. For the years ended December 31, 2011, 2010 and 2009, interest expense on the junior subordinated debentures totaled $2.9 million, $2.8 million and $3.3 million, respectively, and the weighted-average interest rates were 3.54 percent, 3.41 percent and 3.97 percent, respectively.

X
- Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration