Hanmi Financial Corporation · NASDAQ:HAFC

Hanmi Financial — Investor Presentation (November 2006)

24 slides from Hanmi Financial's investor presentation, Nov 14, 2006

  1. Slide 1: Hanmi Financial Corporation November 2006

    HANMI FINANCIAL CORPORATION Nasdaq: HAFC November 2006

  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 $16.6 billion current account surplus in 2005 Continuing immigration trend from Korea Wealthier and better educated recent immigrants Korea recently relaxed restrictions on overseas

  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 Commanding market share among Korean- American banks in California HAFC 2974 NARA 1154 CLFC 1415 WIBC 1661 Others 1574 Deposits Net Loans Note: As of September 30, 2006 based on SEC filings of each company. Excludes 30% of NARA's balances, which are not from California

  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 32 years Kurt M. Wegleitner Kurt M. Wegleitner EVP and CCO 26 years Michael J. Winiarski Michael J. Winiarski SVP and CFO 26 years

  9. Slide 9: Future Growth - Organic and External

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

  10. Slide 10: Financial Performance: Consistent Balance Sheet Growth

    ($ in millions) 2000 2001 2002 2003 2004 2005 2006 3Q Loans 620 820 1000 1270 2235 2469 2821.9 Deposits 940 1040 1290 1450 2529 2826 2973.8 Assets 1030 1160 1460 1790 3104 3414 3739.8 Financial Performance Consistent Balance Sheet Growth

  11. Slide 11: Consistent Balance Sheet Growth: Loans and Deposits

    Financial Performance Consistent Balance Sheet Growth 2000 2001 2002 2003 2004 2005 2006 3Q Loans 620 820 1000 1270 2235 2469 2822 2000 2001 2002 2003 2004 2005 2006 3Q Deposits 940 1040 1290 1450 2529 2826 2974 ($ in millions) ($ in millions) Loans Deposits $621 $2,822 $940 $2,974

  12. Slide 12: Loan Portfolio

    Loan Portfolio As of September 30, 2006 Construction Loans 179 Consumer Loans 182 CRE-Investment Propertirs 753 CRE-Owner/User 938 C & I Loans 800

  13. Slide 13: Specialty Lending Activities

    Specialty Lending Activities Robust SBA loan production 9th largest SBA lender in California in 2005 7 loan production offices Specialized in low income housing lending $31 million low income housing loans booked in 2006 Trade finance The average loan portfolio balance in the third quarter of 2006 w

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

    Korean vs. Non-Korean Business 2000 2001 2002 2003 2004 2005 2006 9 mos.* Korean New Loans 221.1 245.7 287.4 344.5 452.4 800.8 832.4 Non-Korean New Loans 75.4 136.3 165.5 278.4 339.3 548.3 744 ($ in millions) Hanmi has extended service to neighboring ethnic communities. 45% 25% 43% 36% 37% 41% 47% *

  15. Slide 15: Sound Asset Quality

    Sound Asset Quality Non Performing Loans/Gross Loans 2000 2001 2002 2003 2004 2005 2006 3Q Hanmi 0.0178 0.0119 0.0114 0.0106 0.01 0.01 0.0099 Loan Loss Allowance/Gross Loans 2000 2001 2002 2003 2004 2005 2006 3Q Hanmi 0.004 0.0063 0.0065 0.0068 0.0027 0.0041 0.0047 0.99% 0.47%

  16. Slide 16: Deposits Composition

    Deposits Composition Non-Interest Bearing 757 TDs of $100,000 or More 1394 TDs of Less than $100,000 289 Interest Bearing Demand and Savings 534 As of September 30, 2006

  17. Slide 17: Non-interest Income Growth

    Non-interest Income Growth 2000 2001 2002 2003 2004 2005 2006 9 mos.* Service charges on deposits 8.9 9.2 9.2 10.3 14.4 15.8 16.88 Trade finance fees 1.9 1.9 2.4 2.9 4 4.3 4.55 Remittance fees 0.5 0.6 0.8 1 1.7 2.1 2.05 Other service charges 0.8 0.8 1.1 1.5 1.7 2.5 2.32 Other income 0.4 0.4 1.2 1.3

  18. Slide 18: Non-interest Income Growth

    Non-interest Income Growth ($ in millions) 2000 2001 2002 2003 2004 2005 2006 9 mos.* Service charges on deposits 8.9 9.2 9.2 10.3 14.4 15.8 16.88 Trade finance fees 1.9 1.9 2.4 2.9 4 4.3 4.55 Remittance fees 0.5 0.6 0.8 1 1.7 2.1 2.05 Other service charges 0.8 0.8 1.1 1.5 1.7 2.5 2.32 Other income

  19. Slide 19: Net Income and Diluted EPS

    Net Income and Diluted EPS Diluted EPS1 '01 '02 '03 '04 '05 '06 9 mos.* Net Income 16.8 17 19.2 36.7 58.2 64.5 Net Income ($ in millions) '01 '02 '03 '04 '05 '06 9 mos.* Diluted EPS 0.6 0.6 0.67 0.84 1.17 1.31 1Reflects 2005 2:1 stock split *First nine month number, annualized

  20. Slide 20: Return on Average Equity / Assets

    Return on Average Equity / Assets ROA ROE 2000 2001 2002 2003 2004 2005 2006 9 mos. ROE 0.1981 0.1756 0.1508 0.1451 0.1251 0.1394 0.1436 ROA 0.0178 0.0153 0.013 0.0118 0.0137 0.0179 0.0182 ROTE 0.2045 0.1798 0.1535 0.1475 0.2573 0.2933 0.2766

  21. Slide 21: Profitability Ratio Trends

    Profitability Ratio Trends 2003 2004 2005 9 mos. 2006 Yield 5.03% 5.63% 6.93% 7.99% Cost of Funds 1.97% 1.93% 3.04% 4.37% Spread 3.06% 3.70% 3.89% 3.62% NIM 3.68% 4.26% 4.77% 4.78%

  22. Slide 22: Efficiency Ratio Trend

    Efficiency Ratio Trend *Orange color 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 2005 3Q 2005 4Q 2006 1Q 2006 2Q 2006 3Q Efficiency Ratio 0.5565 0.5374 0.528 0.5123 0.5131 0.4777 0.5181 0.5029 0.495

  23. Slide 23: Stock Performance

    Stock Performance Investing $100 (price reflects stock split impacts) 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

  24. Slide 24: 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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