Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Investor Presentation (August 2007)
21 slides from Hanmi Financial's investor presentation, Aug 13, 2007
Slide 1: Safe Harbor Statement
Certain statements contained in this presentation, including, without limitation, statements containing the words "believes," "plans," "expects," "anticipates," and words of similar import, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of
Slide 2: Korean-American Market
Korean-American market nine-year (1997- 2006) history - Loans: 26% CAGR - Deposits: 23% CAGR 40% of the Korean-American population of 2.2 million reside in California. Highest rates of business ownership with one per every eight Korean-American High savings rate Korean-American Market (Source: US Ko
Slide 3: Target Market Growth Drivers
Increased wealth in Korean-American community Korea is the 12th largest economy with a $6 billion current account surplus in 2006. Continuing immigration trend from Korea Wealthier and better educated recent immigrants Korea recently relaxed restrictions on overseas investment. Target Market Growth
Slide 4: Hanmi's Core Competencies
Expertise in serving ethnic immigrant markets Expertise in real estate lending Expertise in small business lending Hanmi's Core Competencies
Slide 5: Loan & Deposit Market Shares
Commanding market share among Korean- American banks in California Loan & Deposit Market Shares HAFC 2973.1 NARA 1312.9 CLFC 1585.4 WIBC 1765.9 Others 1823.9 Deposits Net Loans Note: As of June 30, 2007, based on SEC & FDIC filings of each company. Excludes 27% of NARA's balances, which are not from
Slide 6: Future Growth: Organic and External
Experienced management team Extensive branch network Emphasis on sales & service Incentive compensation program Contiguous market penetration Upgrade existing products Introduce new products Future Growth Organic and External
Slide 7: Consistent Balance Sheet Growth
Financial Performance Consistent Balance Sheet Growth 2000 2001 2002 2003 2004 2005 2006 2Q 07 Loans 620 820 1000 1270 2235 2469 2837 3024 Deposits 940 1040 1290 1450 2529 2826 2945 2973 Assets 1030 1160 1460 1790 3104 3414 3725 3871 ($ in millions)
Slide 8: Consistent Balance Sheet Growth: Net Loans and Deposits
Financial Performance Consistent Balance Sheet Growth 2000 2001 2002 2003 2004 2005 2006 2Q 07 Loans 620 820 1000 1270 2235 2469 2837.4 3023.7 ($ in millions) 2000 2001 2002 2003 2004 2005 2006 2Q 07 Deposits 940 1040 1290 1450 2529 2826 2944.7 2973.2 Net Loans Deposits ($ in millions)
Slide 9: Loan Portfolio
Loan Portfolio Construction Loans 215.8 Consumer Loans 185.8 CRE-Investment Propertirs 759.5 CRE - Owner/User 1067.8 C & I Loans 829.1 As of June 30, 2007
Slide 10: Specialty Lending Activities
Robust SBA loan production - Seven loan production offices Specialized in low-income housing lending - $33 million low-income housing loans closed in the 1st half of 2007 Trade finance - The average loan portfolio balance in the second quarter of 2007 was $131 million. Specialty Lending Activities
Slide 11: Korean vs. Non-Korean Business
Korean vs. Non-Korean Business 2000 2001 2002 2003 2004 2005 2006 1H 07 Non-Korean New Loans 0.25 0.36 0.37 0.45 0.43 0.41 0.46 0.42 Korean New Loans 0.75 0.64 0.63 0.55 0.57 0.59 0.54 0.58 Hanmi has extended services to neighboring ethnic communities. 42%
Slide 12: Sound Asset Quality
Sound Asset Quality 2000 2001 2002 2003 2004 2005 2006 2Q 07 Hanmi 0.004 0.0063 0.0065 0.0068 0.0027 0.0041 0.005 0.0074 2000 2001 2002 2003 2004 2005 2006 1H 07 Hanmi 0.0178 0.0119 0.0114 0.0106 0.01 0.01 0.0096 0.0105 Loan Loss Allowance / Gross Loans 1.05% 0.74% Non Performing Loans / Gross Loans
Slide 13: Deposits Composition
Deposits Composition Non-Interest Bearing 720 TDs of $100,000 or More 1408 TDs of Less than $100,000 309 Interest Bearing Demand and Savings 536 As of June 30, 2007
Slide 14: Net Income and Diluted EPS
Net Income and Diluted EPS 2001 2002 2003 2004 2005 2006 Net Income 16.8 17 19.2 36.7 58.2 65.6 Net Income 2001 2002 2003 2004 2005 2006 Diluted EPS 0.6 0.6 0.67 0.84 1.17 1.33 Diluted EPS ($ in millions)
Slide 15: Net Income and Diluted EPS (Quarterly)
1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 Net Income 14.8 15.9 17.6 17.3 13 15.3 Net Income 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 Diluted EPS 0.3 0.32 0.36 0.35 0.26 0.31 Diluted EPS Net Income and Diluted EPS ($ in millions)
Slide 16: Return on Average Equity / Assets
Return on Average Equity / Assets 2000 2001 2002 2003 2004 2005 2006 1H 07 ROE 0.1981 0.1756 0.1508 0.1451 0.1251 0.1394 0.1433 0.115 ROA 0.0178 0.0153 0.013 0.0118 0.0137 0.0179 0.0182 0.0151 ROTE 0.2045 0.1798 0.1535 0.1475 0.2573 0.2933 0.2709 0.206 ROE ROA
Slide 17: Profitability Ratio Trends
Profitability Ratio Trends 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 Loan Yield 8.46% 8.65% 8.89% 8.77% 8.80% 8.68% Asset Yield 7.82% 8.06% 8.29% 8.18% 8.23% 8.17% Cost of Funds 3.97% 4.37% 4.73% 4.85% 4.87% 4.92% Spread 3.85% 3.69% 3.56% 3.33% 3.36% 3.25% NIM 4.92% 4.84% 4.79% 4.59% 4.61% 4.51%
Slide 18: Non-interest Income Growth
Non-interest Income Growth 2000 2001 2002 2003 2004 2005 2006 1H 07 Service charges on deposits 8.9 9.2 9.2 10.3 14.4 15.8 17.1 8.9 Trade finance fees 1.9 1.9 2.4 2.9 4 4.3 4.6 2.5 Insurance commissions 0 0 0.1 0.1 0.3 0.7 0.8 2.4 Remittance fees 0.5 0.6 0.8 1 1.7 2.1 2.1 1 Other service charges 0.8
Slide 19: Efficiency Ratio
Efficiency Ratio 02 4Q 03 1Q 03 2Q 03 3Q 03 4Q 04 1Q 04 2Q 04 3Q 04 4Q 05 1Q 05 2Q 05 3Q 05 4Q 06 1Q 06 2Q 06 3Q 06 4Q 07 1Q 07 2Q Efficiency Ratio 0.5565 0.5374 0.528 0.5123 0.5131 0.4777 0.5181 0.5029 0.4951 0.4438 0.403 0.3834 0.4193 0.391 0.4159 0.4014 0.3959 0.4364 0.4361 Acquisition 0 0 0 0 0
Slide 20: Stock Performance
Stock Performance 1/1/2007 2/1/2007 3/1/2007 4/1/2007 5/1/2007 6/1/2007 7/1/2007 8/1/2007 9/1/2007 10/1/2007 11/1/2007 12/1/2007 1/2/2007 2/2/2007 3/2/2007 4/2/2007 5/2/2007 6/2/2007 7/2/2007 8/2/2007 9/2/2007 10/2/2007 11/2/2007 12/2/2007 1/3/2007 2/3/2007 3/3/2007 4/3/2007 5/3/2007 6/3/2007 7/3/20
Slide 21: Investment Opportunity
Dominant franchise in the attractive, high growth California-based Korean-American marketplace Proven expertise serving growing immigrant markets Experienced management team High quality loan portfolio coupled with attractive core deposit franchise Compelling Investment Opportunity
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