Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Q1 2022 Earnings Presentation
25 slides from Hanmi Financial's earnings presentation, Apr 26, 2022
Slide 1: 1Q22 Earnings Supplemental Presentation
Los Angeles New York/ New Jersey Virginia Chicago Dallas Houston San Francisco San Diego 1Q22 Earnings Supplemental Presentation April 26, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Hanmi Financial Corporation (the “Company”) cautions investors that any statements contained herein that are not historical facts are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, incl
Slide 3: 1Q22 Highlights
1Q22 Highlights Net Income Diluted EPS ROAA ROAE NIM Efficiency Ratio TBVPS* $20.7M $0.68 1.22% 12.74% 3.10% 53.29% $20.02 • Net income was $20.7 million, or $0.68 per diluted share, down 37.9% from $33.3 million, or $1.09 per diluted share for the prior quarter and up 24.2% from $16.7 million, or $
Slide 4: Loan Portfolio Composition
Loan Portfolio Composition $5.34 Billion Loan Portfolio (as of 03/31/22) Commercial Real Estate Portfolio Loan Portfolio Composition $ in millions Outstanding $3,771 1Q22 Average Yield 4.17% Leasing – 9% RRE & Consumer Portfolio $ in millions C&I – 12% Outstanding $433 1Q22 Average Yield 3.46% RRE &
Slide 5: CRE Portfolio Composition
CRE Portfolio Composition $3.77 Billion CRE Portfolio (as of 03/31/22) Investor (Non-owner) Occupied # of Loans 980 CRE Portfolio Composition ($ in millions) Average Balance ($ in millions) $2.7 Weighted Average Loan-to-Value Ratio(1) 51.5% Weighted Average Debt Coverage Ratio 1.71x Construction # o
Slide 6: Loan Portfolio Diversification
Loan Portfolio Diversification Loan portfolio is well diversified across property and business types. CRE Portfolio C&I Portfolio $3.77B $633M Construction – 2% Other 13% Hospitality – 20% Mixed Use – Other – Manufacturing – 5% 29% 29% Industrial – 6% Retail – 27% Multifamily – Real Estate 9% Rental
Slide 7: CRE Portfolio Geographical Exposure
CRE Portfolio Geographical Exposure ($ in millions) Multifamily by State Construction by State $321M $88M CRE Composition by State New York – Illinois – $3,771M $16 5% $4 New York – $18 1% 21% Texas – New York – Illinois – $52 $156 $81 16% 4% 2% Other – Other - $9 $17 10% 6% Texas – California – $23
Slide 8: Hospitality Segment by Location Type
Hospitality Segment by Location Type Hospitality segment(1) declined by 20% since the onset of the pandemic (1Q20) to $737 million at 1Q22, representing 13.8% of the loan portfolio. Convention Center – Casino – 3% 3% Hospitality Portfolio Detail • Average balance within the segment was $3.2 million
Slide 9: Deposit Base
Deposit Base Deposits decreased to $5.78 billion, down 0.1% from the prior quarter and up 5.0% from the same quarter last year. • Noninterest-bearing demand deposits increased 4.0% from the prior quarter and 23.2% from the same quarter last year • Noninterest-bearing demand deposits increased to 46.
Slide 10: Adjusted Pretax Pre-Provision Income
Adjusted Pretax Pre-Provision Income (3) ($ in million) 1Q22 4Q21 3Q21 2Q21 1Q21 • Adjusted pretax, pre-provision income(3) for 1Q22 up 26% compared Income Statement Summary with the same quarter last year Net interest income $ 51.0 $ 49.5 $ 50.0 $ 49.6 $ 46.0 • Adjusted operating revenue(3) remaine
Slide 11: Net Interest Income | Net Interest Margin
Net Interest Income | Net Interest Margin Net interest income was $51.0 million for the first quarter compared with $49.5 million for the prior quarter; net interest margin for the quarter was 3.10% compared with 2.96% for the prior quarter. ($ in millions) 0.04% 0.01% 3.19% 0.15% -0.06% 3.13% 3.10%
Slide 12: Noninterest Income
Noninterest Income Noninterest income was $8.5 million for the first quarter compared with $9.3 million for the prior quarter primarily due to lower SBA gains. Noninterest Income Service Charges and Fees (as of 1Q22) ($ in millions) ($ in millions) Service charges on deposit (3) Service charges, fee
Slide 13: ACL Analysis
ACL Analysis Allowance for credit losses was $71.5 million as of March 31, 2022 generating an allowance for credit losses to loans of 1.34% compared with 1.41% at the end of the prior quarter. ($ in millions) March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Allowance
Slide 14: Asset Quality – Criticized Loans
Asset Quality – Criticized Loans Total criticized loans increased by 27% quarter-over-quarter. ($ in millions) March 31, December 31, Additions / Reductions / 2022 2021 Downgrades Upgrades Special Mention $ 141.0 $ 95.3 $ 68.1 $ 22.4 Classified $ 057.4 $ 060.6 $ 02.8 $ 6.0 Total Criticized Loans $ 1
Slide 15: Asset Quality – Nonaccrual Loans
Asset Quality – Nonaccrual Loans Nonaccrual loans decreased 14% quarter-over-quarter. ($ in millions) $13.4 (1) $11.5 (1) All other CRE and C&I < $3M $5.1 All other CRE and C&I < $3M (2) $4.2 RRE (2) $1.2 RRE (2) $1.2 (2) Leases $7.1 Leases $6.1 4Q21 1Q22 Note: Numbers may not add due to rounding (1
Slide 16: Liquidity
Liquidity Cash and due from banks to assets ratio decreased to 4.6% from 8.9% in the prior quarter. Liquid Asset Ratio(1) Cash and Due From Banks as a Percentage of Total Assets 25.5% 12.2% 22.2% 23.7% 21.9% 10.6% 10.0% 17.5% 8.9% 4.6% 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 (1) Liquid ass
Slide 17: Capital Management
Capital Management Consistent track record of prudent capital management. $20.79 $19.96 $20.02 $19.27 $18.59 9.23% • Tangible book value per share 9.07% 8.98% (TBVPS) grew by 8% in the last 9.01% 8.87% twelve months 1Q21 2Q21 3Q21 4Q21 1Q22 • 1Q22 TBVPS(1) and TCE/TA(1) (1) (1) ratio was impacted by
Slide 18: Securities Portfolio
Securities Portfolio The composition of the securities portfolio remains relatively unchanged quarter-over-quarter, with allocation to U.S. treasuries, municipal securities, and U.S. government agencies and sponsored agencies – mortgage backed securities, collateralized mortgage obligations, and not
Slide 19: 1Q22 Financial Summary
1Q22 Financial Summary ($ in millions, except EPS) Change (1) 1Q22 4Q21 1Q21 Q/Q Y/Y Income Statement Summary Net interest income $ 51.0 $ 49.5 $ 46.0 2.9% 10.8% Noninterest income 8.5 9.3 9.8 -8.3% -13.1% Operating revenue 59.5 58.8 55.8 1.2% 6.6% Noninterest expense 31.7 31.6 29.5 0.2% 7.3% Credit
Slide 20: Non-GAAP Reconciliation: Tangible Common Equity to Tangible Asset Ratio
Non-GAAP Reconciliation: Tangible Common Equity to Tangible Asset Ratio ($ in thousands, except share, per share data and ratios) March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Assets $ 6,737,052 $ 6,858,587 $ 6,776,533 $ 6,578,856 $ 6,438,401 Less goodwill and othe
Slide 21: Non-GAAP Reconciliation: Pretax Pre-Provision Income
Non-GAAP Reconciliation: Pretax Pre-Provision Income ($ in millions) 1Q22 4Q21 3Q21 2Q21 1Q21 Pretax income $ 29.2 $ 43.1 $ 37.2 $ 31.0 $ 24.2 less credit loss expense (1.4) (16.0) (7.2) (3.3) 2.1 Pretax, Pre-provision, income $ 27.8 $ 27.2 $ 30.0 $ 27.7 $ 26.3 less income from PPP gains - - (0.3) (
Slide 22: Non-GAAP Reconciliation – PPP (4Q21)
Non-GAAP Reconciliation – PPP (4Q21) ($ in thousands, except share and per share data) Three Months Ended As of December 31, 2021 December 31, 2021 Tangible Common Equity to Tangible Assets Net Interest Margin Tangible assets $ 6,847,192 Net interest income $ 49,496 Less first and second draw PPP lo
Slide 23: Non-GAAP Reconciliation – PPP (3Q21)
Non-GAAP Reconciliation – PPP (3Q21) ($ in thousands, except share and per share data) Three Months Ended As of September 30, 2021 September 30, 2021 Tangible Common Equity to Tangible Assets Net Interest Margin Tangible assets $ 6,765,083 Net interest income $ 49,980 Less first and second draw PPP
Slide 24: Non-GAAP Reconciliation – PPP (2Q21)
Non-GAAP Reconciliation – PPP (2Q21) ($ in thousands, except share and per share data) Three Months Ended As of June 30, 2021 June 30, 2021 Tangible Common Equity to Tangible Assets Net Interest Margin Tangible assets $ 6,567,352 Net interest income $ 49,572 Less first and second draw PPP loans (158
Slide 25: Non-GAAP Reconciliation – PPP (1Q21)
Non-GAAP Reconciliation – PPP (1Q21) ($ in thousands, except share and per share data) Three Months Ended As of March 31, 2021 March 31, 2021 Tangible Common Equity to Tangible Assets Net Interest Margin Tangible assets $ 6,426,843 Net interest income $ 46,001 Less first and second draw PPP loans (2