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Regulatory Matters | 6 Months Ended
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Jun. 30, 2018
Banking and Thrift [Abstract] |
Regulatory Matters | Regulatory Matters In July 2013, the Board of Governors of the Federal Reserve, the Office of the Comptroller of the Currency and the FDIC approved the Basel III regulatory capital framework and related changes under the Dodd-Frank Wall Street Reform and Consumer Protection Act. 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. Basel III rules, including certain transitional provisions, became effective January 1, 2015, and its requirements are included in the capital ratios presented in the table shown below. In addition, a new capital conservation buffer of 2.5% began to be phased in effective January 1, 2016 through 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. In January 2016, the new capital conservation buffer requirement was 0.625% of risk-weighted assets and will increase each year until fully implemented in January 2019. The Company and the Bank's capital conservation buffer was 6.35% and 6.86%, respectively, as of June 30, 2018, and 6.55% and 7.20%, respectively, as of December 31, 2017. As a result of the recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies are required to develop a “Community Bank Leverage Ratio” (the ratio of a bank’s tangible equity capital to average total consolidated assets) for financial institutions with assets of less than $10 billion. A “qualifying community bank” that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered “well capitalized” under Prompt Corrective Action statutes. The federal banking agencies may consider a financial institution’s risk profile when evaluating whether it qualifies as a community bank for purposes of the capital ratio requirement. The federal banking agencies must set the minimum capital for the new Community Bank Leverage Ratio at not less than 8% and not more than 10%. A financial institution can elect to be subject to this new definition. The capital ratios of Hanmi Financial and the Bank as of June 30, 2018 and December 31, 2017 were as follows:
| Actual |  | Minimum Regulatory Requirement |  | Minimum to Be Categorized as “Well Capitalized”
| Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
| (dollars in thousands)
June 30, 2018 |  |  |  |  |  |  |  |  |  |  |
Total capital (to risk-weighted assets): |  |  |  |  |  |  |  |  |  |  |
Hanmi Financial | $ | 704,262 |  |  | 15.17 | % |  | $ | 371,336 |  |  | 8.00 | % |  | N/A |  |  | N/A |
Hanmi Bank | $ | 690,123 |  |  | 14.86 | % |  | $ | 371,465 |  |  | 8.00 | % |  | $ | 464,332 |  |  | 10.00 | %
Tier 1 capital (to risk-weighted assets): |  |  |  |  |  |  |  |  |  |  |
Hanmi Financial | $ | 573,034 |  |  | 12.35 | % |  | $ | 278,502 |  |  | 6.00 | % |  | N/A |  |  | N/A |
Hanmi Bank | $ | 656,948 |  |  | 14.15 | % |  | $ | 278,599 |  |  | 6.00 | % |  | $ | 371,465 |  |  | 8.00 | %
Common equity Tier 1 capital (to risk-weighted assets): |  |  |  |  |  |  |  |  |  |  |
Hanmi Financial | $ | 553,555 |  |  | 11.93 | % |  | $ | 208,876 |  |  | 4.50 | % |  | N/A |  |  | N/A |
Hanmi Bank | $ | 656,948 |  |  | 14.15 | % |  | $ | 208,949 |  |  | 4.50 | % |  | $ | 301,815 |  |  | 6.50 | %
Tier 1 capital (to average assets): |  |  |  |  |  |  |  |  |  |  |
Hanmi Financial | $ | 573,034 |  |  | 10.83 | % |  | $ | 211,655 |  |  | 4.00 | % |  | N/A |  |  | N/A |
Hanmi Bank | $ | 656,948 |  |  | 12.42 | % |  | $ | 211,663 |  |  | 4.00 | % |  | $ | 264,579 |  |  | 5.00 | %
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |
Total capital (to risk-weighted assets): |  |  |  |  |  |  |  |  |  |  |
Hanmi Financial | $ | 684,272 |  |  | 15.50 | % |  | $ | 353,171 |  |  | 8.00 | % |  | N/A |  |  | N/A |
Hanmi Bank | $ | 670,896 |  |  | 15.20 | % |  | $ | 353,091 |  |  | 8.00 | % |  | $ | 441,364 |  |  | 10.00 | %
Tier 1 capital (to risk-weighted assets): |  |  |  |  |  |  |  |  |  |  |
Hanmi Financial | $ | 553,970 |  |  | 12.55 | % |  | $ | 264,878 |  |  | 6.00 | % |  | N/A |  |  | N/A |
Hanmi Bank | $ | 638,557 |  |  | 14.47 | % |  | $ | 264,818 |  |  | 6.00 | % |  | $ | 353,091 |  |  | 8.00 | %
Common equity Tier 1 capital (to risk-weighted assets): |  |  |  |  |  |  |  |  |  |  |
Hanmi Financial | $ | 537,950 |  |  | 12.19 | % |  | $ | 198,658 |  |  | 4.50 | % |  | N/A |  |  | N/A |
Hanmi Bank | $ | 638,557 |  |  | 14.47 | % |  | $ | 198,614 |  |  | 4.50 | % |  | $ | 286,886 |  |  | 6.50 | %
Tier 1 capital (to average assets): |  |  |  |  |  |  |  |  |  |  |
Hanmi Financial | $ | 553,970 |  |  | 10.79 | % |  | $ | 205,344 |  |  | 4.00 | % |  | N/A |  |  | N/A |
Hanmi Bank | $ | 638,557 |  |  | 12.44 | % |  | $ | 205,385 |  |  | 4.00 | % |  | $ | 256,731 |  |  | 5.00 | %

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- Definition The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958577-112826 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826 + Details
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