Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Merger or Acquisition (May 2018)
12 slides from Hanmi Financial's merger presentation, May 21, 2018
Slide 1: Acquisition of SWNB Bancorp, Inc.
1 Acquisition of SWNB Bancorp, Inc. May 21, 2018 Enhances Our Banking Platform in Vibrant Texas Markets
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . These forward - looking statements include, but are not limited to, statements about ( 1 ) the benefits of the merger between Hanmi Financial Corporation (
Slide 3: Compelling Strategic Rationale
Compelling Strategic Rationale 3 x Significant expansion into the highly attractive Texas market ▪ The acquisition of SWNB Bancorp, Inc. (“SWNB”) significantly expands Hanmi’s presence in multiple Texas metro markets ▪ Branches are strategically located in Houston, Dallas, and Austin, all of which h
Slide 4: Pro Forma Impact to Hanmi
Pro Forma Impact to Hanmi ▪ SWNB has $411 million in total assets, which increases Hanmi’s pro forma assets to approximately $5.7 billion (1) ▪ Hanmi will have $552.3 million in loans and $660.3 million in deposits in Texas pro forma (1) ▪ EPS accretion of 2.2% in 2019 (2) ▪ Approximately 1.5% dilut
Slide 5: Overview of SWNB Bancorp, Inc.
Q1 2017 Q4 2017 Q1 2018 Total Assets $ 359 , 95 2 $ 396 , 06 8 $ 410 , 62 8 Gross Loans $ 214 , 13 4 $ 247 , 55 8 $ 261 , 22 4 Total Deposits $ 298 , 89 2 $ 332 , 28 9 $ 347 , 44 4 Tangible Common Equity $ 46 , 06 5 $ 48 , 13 7 $ 47 , 93 4 Loans / Deposits 71 . 6 % 74 . 5 % 75 . 2 % Tangible Common
Slide 6: Pro Forma Branch Network and Texas Footprint
Standalone Hanmi Pro Forma Hanmi % Branches Deposits Branches Deposits Increase Houston MSA 3 $ 143,612 5 $ 324,538 126.0% Dallas MSA 5 $ 180,767 8 $ 295,889 63.7% Austin MSA 1 $ 16,407 2 $ 27 , 06 5 65.0% Pro Forma Branch Network Source: S&P Global Market Intelligence. Deposit data as of June 30, 2
Slide 7: Summary of Deal Terms
Summary of Deal Terms Con si d erati o n Detail Pro Forma O w n e r s hi p Required A pp r o v als V al u ati o n Ratios (1) A dd iti on al Details ▪ Fixed exchange ratio of 0.1961x Hanmi shares or $5.74 cash consideration per SWNB share ▪ 80.0% stock / 20.0% cash mix for SWNB common shareholders ▪
Slide 8: Financial Impact and Assumptions
Financial Impact and Assumptions ▪ 2.2% accretive to Hanmi’s EPS in 2019; 2.4% accretive in 2020 (1) ▪ 1.5% dilutive to tangible book value per share at closing ▪ Approximately 3 year earnback using the crossover method ▪ Greater than 20% internal rate of return ▪ Pro Forma TCE ratio of 10.2%, lever
Slide 9: Pro Forma Loan and Deposit Mix
N on - I n t eres t Bearing 31% Interest Demand 2% MMDA/ Sav. 34% CDs <$250k 21% CDs >$250k 12% N on - I n t eres t Bearing 16% Interest Demand 6% MMDA/ Sav. 37% CDs <$250k 27% CDs >$250k 14% N on - I n t eres t Bearing 30% Interest Demand 2% MMDA/ Sav. 34% CDs <$250k 22% CDs >$250k 12% Cons t ru ct
Slide 10: Complementary Combination
Complementary Combination Note: GAAP data for Hanmi and bank - level regulatory data for Southwestern National Bank. For the quarter ended March 31, 2018 10 Hanmi SWNB Pro Forma Asian - American Focus x x x Commercial Banking Platform x x x CRE Expertise x x x Strong Credit Quality x x x Loan / Depo
Slide 11: Comprehensive Due Diligence Process
Comprehensive Due Diligence Process 11 x Experienced Management Team ▪ Hanmi’s senior management team (including CEO, COO, and CFO) has extensive acquisition and integration experience x Thorough review of credit, regulatory, compliance, legal and operational risks ▪ Extensive credit due diligence p
Slide 12: Compelling Acquisition Opportunity
Compelling Acquisition Opportunity 12 x Strong Strategic Rationale ▪ Financially compelling acquisition which is in - line with Hanmi’s strategic goals ▪ Reasonable price compared to precedent transactions ▪ Significantly increases Hanmi’s deposit market share in key Texas markets and solidifies Han