Hanmi Financial Corporation · NASDAQ:HAFC

Hanmi Financial — Investor Presentation (September 2005)

25 slides from Hanmi Financial's investor presentation, Sep 27, 2005

  1. Slide 1: Hanmi Financial Corporation September 2005

    HANMI FINANCIAL CORPORATION Nasdaq: HAFC September 2005

  2. Slide 2: Safe Harbor Statement

    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 Lit

  3. Slide 3: Opportunities

    Opportunities Opportunities Opportunities

  4. Slide 4: Korean-American Market

    Korean-American Market Korean-American market five-year history Loans: 29% CAGR Deposits: 24% CAGR 40% of 2.2 million Korean-American population reside in California. Highest rates of business ownership with one per every eight Korean-Americans High savings rate (Sources: US Korean Embassy and 2001

  5. Slide 5: Target Market Growth Drivers

    Target Market Growth Drivers Increased wealth in the Korean-American community Korea is the 11th largest economy with $28 billion current account surplus in 2004 Continuing immigration trend from Korea Wealthier and better educated recent immigrants

  6. Slide 6: Hanmi's Core Competencies

    Hanmi's Core Competencies Ethnic markets Real estate lending Business lending

  7. Slide 7: Loan & Deposits Market Shares

    Loan & Deposits Market Shares Nearly 50% market share among publicly traded Korean-American banks in California HAFC 0.41 NARA 0.17 CLFC 0.21 WIBC 0.2 Deposits Net Loans Note: As of June 30, 2005 based on SEC filings of each company. Excludes 30% of NARA's balances, which are not from California ope

  8. Slide 8: Experienced Management Team

    Experienced Management Team Name Name Title Banking Experience Sung Won Sohn, Ph. D. Sung Won Sohn, Ph. D. President and CEO 31 years Kurt M. Wegleitner Kurt M. Wegleitner EVP and CCO 25 years Michael J. Winiarski Michael J. Winiarski SVP and CFO 25 years

  9. Slide 9: Future Growth - Organic and External

    Future Growth - Organic and External Emphasis on sales & service Incentive compensation program Contiguous market penetration Upgrade existing products Introduce new products

  10. Slide 10: By executing on our strategy...

    By executing on our strategy... Customers will... refer business Employees will... say Hanmi is a great place to work Investors will... consider HAFC a superior investment

  11. Slide 11: Consistent Balance Sheet Growth

    ($ in millions) 2000 2001 2002 2003 2004 2005 2Q Loans 620 820 1000 1270 2235 2404 Deposits 940 1040 1290 1450 2529 2560 Assets 1030 1160 1460 1790 3104 3252 Financial Performance Consistent Balance Sheet Growth

  12. Slide 12: Loan Portfolio

    Loan Portfolio As of June 30, 2005 Construction Loans 115119 Consumer Loans 170700 Commercial Real Estate Loans 1462598 C & I Loans 668788 Other Loans 13309

  13. Slide 13: Specialty Lending Activities

    Specialty Lending Activities Robust SBA loan production 3rd largest SBA lender in LA district in 2004 4th largest SBA lender in California in 2004 Specialized in low income housing lending $59 million low income housing loans booked as of 2Q 2005 Sponsored two recipients of AHP grants awarded by the

  14. Slide 14: Korean vs. Non-Korean Business

    Korean vs. Non-Korean Business 2000 2001 2002 2003 2004 2005 1H Korean New Loans 221.1 245.7 287.4 344.5 452.4 358.4 Non-Korean New Loans 75.4 136.3 165.5 278.4 339.3 315 ($ in millions) Hanmi has extended service to neighboring ethnic communities. 45% 25% 43% 36% 37% 47%

  15. Slide 15: Sound Asset Quality

    Sound Asset Quality Loan Loss Allowance/Gross Loans 2000 2001 2002 2003 2004 2005 2Q Hanmi 0.0178 0.0119 0.0114 0.0106 0.01 0.0091 Non Performing Assets/Total Assets 2000 2001 2002 2003 6/26/1905 2005 2Q Hanmi 0.0025 0.0043 0.0044 0.0048 0.0019 0.0019

  16. Slide 16: Solid Deposits Franchise

    Solid Deposits Franchise 2003 1Q 2003 2Q 2003 3Q 2003 4Q 2004 1Q 2004 2Q 2004 3Q 2004 4Q 2005 1Q 2005 2Q Non-interest bearing 400 440 460 480 490 760 720 730 770 758 Savings and money market 290 300 300 300 380 660 740 768 713 660 Certificates of deposit 650 720 740 670 610 930 950 1032 1062 1142 ($

  17. Slide 17: Deposits Composition

    Deposits Composition Non-Interest Bearing 757482 TDs of $100,000 or More 916212 TDs of Less than $100,000 225950 Interest Bearing Demand and Savings 660333 As of June 30, 2005

  18. Slide 18: Revenue Growth

    Revenue Growth 2000 2001 2002 2003 2004 2005 1H* Net interest income 41.36 43.69 47.97 56.33 101.55 130.34 Non-interest income 15 17.25 21.2 20.32 27.6 29.99 ($ in millions) *Annualized numbers

  19. Slide 19: Net Income and Diluted EPS

    Net Income and Diluted EPS Diluted EPS1 2000 2001 2002 2003 2004 2005 1H* Net Income 15.5 16.8 17 19.2 36.7 56.7 Net Income ($ in millions) 2000 2001 2002 2003 2004 2005 1H* Diluted EPS 0.57 0.6 0.6 0.67 0.84 1.12 1Reflects recent 2:1 stock split *Annualized numbers

  20. Slide 20: Return on Average Equity / Assets

    Return on Average Equity / Assets ROA ROE 2000 2001 2002 2003 2004 2005 1H ROE 0.1981 0.1756 0.1508 0.1451 0.1251 0.1391 ROA 0.0178 0.0153 0.013 0.0118 0.0137 0.0182 ROTE 0.2045 0.1798 0.1535 0.1475 0.2573 0.2993

  21. Slide 21: Profitability Ratio Trends

    Profitability Ratio Trends 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 Yield 5.09 % 5.25 % 5.30 % 5.66 % 6.06 % 6.38 % 6.82 % Cost of Funds 1.77 % 1.80 % 1.80 % 1.87 % 2.18 % 2.39 % 2.75 % Spread 3.32 % 3.45 % 3.50 % 3.79 % 3.88 % 3.99 % 4.07 % NIM 3.87 % 4.02 % 4.04 % 4.32 % 4.51 % 4.70 % 4.89 %

  22. Slide 22: Efficiency Ratio Trend

    Efficiency Ratio Trend *Reflects restructuring expenses related to the PUB merger 2002 4Q 2003 1Q 2003 2Q 2003 3Q 2003 4Q 2004 1Q 2004 2Q 2004 3Q 2004 4Q 2005 1Q 2005 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 Acquisition 0 0 0 0 0 0 0.0557 0.0087

  23. Slide 23: PUB Merger Progress

    PUB Merger Progress Integration completed Achieved anticipated annualized cost savings of $10.9 million 5 branches closed Successful customer retention Number of employees reduced to 518 from 670

  24. Slide 24: Stock Performance

    Stock Performance Investing $100 (price reflects dividends) HAFC NASDAQ S & P Financials 12/1/2000 100 100 100 20.4 1/1/2004 115.11 112.23 99.57 31.6 2/1/2004 115.11 87.1 92.89 43.9 3/1/2004 117.02 74.49 90 4/1/2004 111.95 85.66 93.22 5/1/2004 116.01 85.43 96.79 6/1/2004 131.91 87.45 96.67 7/1/2004

  25. Slide 25: Compelling Investment Opportunity

    Compelling 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

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