Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Q4 2021 Earnings Presentation
27 slides from Hanmi Financial's earnings presentation, Jan 25, 2022
Slide 1: 4Q21 Earnings Supplemental Presentation
4Q21 Earnings Supplemental Presentation January 25, 2022 1
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: 4Q21 Highlights
4Q21 Highlights Net Income Diluted EPS ROAA ROAE NIM Efficiency Ratio TBVPS* $33.3M $1.09 1.93% 20.89% 2.96% 53.81% $20.79 • Net income of $33.3 million, or $1.09 per diluted share, up 25.5% from $26.6 million, or $0.86 per diluted share, from the prior quarter and up 132.7% from $14.3 million, or $
Slide 4: 4Q21 Financial Summary
4Q21 Financial Summary (1) ($ million, except EPS) Change 4Q21 3Q21 4Q20 Q/Q Y/Y Income Statement Summary Net interest income $ 49.5 $ 50.0 $ 46.9 -1.0% 5.6% Noninterest income 9.3 12.5 8.8 -25.7% 5.5% Operating revenue 58.8 62.5 55.7 -5.9% 5.6% Noninterest expense 31.6 32.5 30.9 -2.7% 2.3% Credit l
Slide 5: Loan Portfolio Composition
Loan Portfolio Composition $5.15 Billion Loan Portfolio (as of 4Q21) Commercial Real Estate Portfolio Loan Portfolio Composition $ in millions Outstanding $3,702 4Q21 Average Yield 4.25% (1) RRE & Consumer Portfolio RRE $ in millions 8% Outstanding $401 4Q21 Average Yield 3.38% (2) CRE C&I Commercia
Slide 6: CRE Portfolio Composition
CRE Portfolio Composition $3.70 Billion CRE Portfolio (as of 4Q21) Investor (Non-owner) Occupied CRE Portfolio Composition ($ in millions) # of Loans 988 Average Balance ($ in millions) $2.6 Weighted Average Loan-to-Value Ratio(1) 51.0% Weighted Average Debt Coverage Ratio 1.75x Construction Investo
Slide 7: Loan Portfolio Diversification
Loan Portfolio Diversification Loan portfolio is well diversified across property and business types. CRE Portfolio C&I Portfolio $3.70B $562M Other (1) Wholesale 14% Hospitality Other Trade 21% 18% 18% Mixed Use 5% Real Estate & Leasing Industrial 4% 6% Healthcare Multifamily 10% 9% Retail Manufact
Slide 8: CRE Portfolio Geographical Exposure
CRE Portfolio Geographical Exposure Multifamily by State Construction by State CRE Composition by State $308M ($ in millions) $95M ($ in millions) $3,702M ($ in millions) New York Illinois $4 $16 1% 5% Illinois New York New York $82 Texas $18 19% $157 2% $51 17% Other 4% Other $9 $19 9% California 6
Slide 9: Hospitality Segment by Location Type
Hospitality Segment by Location Type Hospitality segment(1) declined by 17% since 1Q20 to $761 million at 4Q21, representing 14.8% of the loan portfolio. Convention Center Casino 3% 3% Hospitality Portfolio Detail • Average balance within the segment was $3.3 million Airport 7% • Weighted average de
Slide 10: Deposit Base
Deposit Base Deposits increased to $5.79 billion, up 1.0% from the third quarter and 9.7% from the same quarter last year. • Noninterest-bearing demand deposits increased 1.0% from the prior quarter and 35.6% from the same quarter last year • Noninterest-bearing demand deposits increased to 44.5% of
Slide 11: Adjusted Pretax Pre-Provision Income
Adjusted Pretax Pre-Provision Income(3) ($ millions) • Driven by a 19% decrease in adjusted noninterest 4Q21 3Q21 2Q21 1Q21 4Q20 income(3), adjusted operating revenue(3) decreased Income Statement Summary by 5% quarter-over-quarter $ 46.9 Net interest income $ 49.5 9.9 $ 50.0 12.2 $ 49.6 8.6 $ 46.0
Slide 12: Net Interest Income / Net Interest Margin
Net Interest Income / Net Interest Margin Net interest income was $49.5 million for the fourth quarter compared with $50.0 million for the prior quarter; net interest margin for the quarter was 2.96% (2.96%(1) excluding PPP loans) compared with 3.07% for the prior quarter (3.00%(1) excluding PPP loa
Slide 13: Noninterest Income
Noninterest Income Noninterest income was $9.3 million for the fourth quarter compared with $12.5 million for the prior quarter due primarily due lower levels of SBA gains. Noninterest Income ($ in millions) Service Charges and Fees as of 4Q21($ in millions) Service charges on deposit $0.3 $1.0 acco
Slide 14: ACL Analysis
ACL Analysis Allowance for credit losses was $72.6 million as of December 31, 2021 generating an allowance for credit losses to loans of 1.41% compared with 1.58% at the end of the prior quarter. ($ millions) December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 Allowan
Slide 15: Asset Quality – Criticized Loans
Asset Quality – Criticized Loans Total criticized loans decreased by 27% quarter-over-quarter. ($ millions) December 31, September 30, Additions / Reductions / Pandemic- 2021 2021 Downgrades Upgrades impacted Special Mention $ 95.3 $ 130.6 $ 28.3 $ 63.6 $ 32.8 Classified $ 060.6 $ 82.4 $ 017.7 $ 39.
Slide 16: Asset Quality – Nonaccrual Loans
Asset Quality – Nonaccrual Loans Nonaccrual loans(3) decreased 37% quarter-over-quarter. ($ millions) $21.2 (1) CRE - Construction/land $7.0 $13.4(1) All other CRE & C&I < $3M $4.8 All other CRE & C&I < $3M $5.1 RRE(2) $2.5 RRE(2) $1.2 Lease Lease $6.9 $7.1 3Q21 4Q21 Note: Numbers may not add due to
Slide 17: Liquidity
Liquidity Hanmi Financial’s cash and due from banks to assets ratio decreased to 8.9% from 12.2% in the prior quarter. Cash and Due From Banks as a Liquid Asset Ratio(1) Percentage of Total Assets 25.5% 12.2% 22.2% 23.7% 21.9% 10.6% 10.0% 18.2% 8.9% 6.3% 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21
Slide 18: Securities Portfolio
Securities Portfolio The composition of the securities portfolio remains relatively unchanged quarter-over-quarter, with allocation to U.S. treasuries, municipal securities, and U.S. government agencies and sponsored agencies – mortgage backed securities, collateralized mortgage obligations, and not
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ thousands, except share, per share data and ratios) December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 Tangible Common Equity to Tangible Assets Ratio Assets $6,858,587 $6,776,533 $6,578,856 $6,438,401 $6,201,888 Less goodwill and other int
Slide 20: Non-GAAP Reconciliation: Pretax Pre-Provision Income
Non-GAAP Reconciliation: Pretax Pre-Provision Income ($ millions) 4Q21 3Q21 2Q21 1Q21 4Q20 Pretax income $ 43.1 $ 37.2 $ 31.0 $ 24.2 $ 19.7 less credit loss expense (16.0) (7.2) (3.3) 2.1 5.1 Pretax, Pre-provision, income $ 27.2 $ 30.0 $ 27.7 $ 26.3 $ 24.8 less income from PPP gains - (0.3) (0.2) (2
Slide 21: 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 22: 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 23: 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 24: 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
Slide 25: Non-GAAP Reconciliation – PPP (4Q20)
Non-GAAP Reconciliation – PPP (4Q20) ($ in thousands, except share and per share data) Three Months Ended As of December 31, 2020 December 31, 2020 Tangible Common Equity to Tangible Assets Net Interest Margin Tangible assets $ 6,190,276 Net interest income $ 46,877 Less PPP loans (295,702) Less PPP
Slide 26: Non-GAAP Reconciliation – PPP (3Q20)
Non-GAAP Reconciliation – PPP (3Q20) ($ in thousands, except share and per share data) Three Months Ended As of September 30, 2020 September 30, 2020 Tangible Common Equity to Tangible Assets Net Interest Margin Tangible assets $ 6,095,105 Net interest income $ 45,605 Less PPP loans (302,929) Less P
Slide 27: Non-GAAP Reconciliation – PPP (2Q20)
Non-GAAP Reconciliation – PPP (2Q20) ($ in thousands, except share and per share data) Three Months Ended As of June 30, 2020 June 30, 2020 Tangible Common Equity to Tangible Assets Net Interest Margin Tangible assets $ 6,206,421 Net interest income $ 44,442 Less PPP loans (301,836) Less PPP loan in