Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Investor Presentation (June 2004)
19 slides from Hanmi Financial's investor presentation, Jun 23, 2004
Slide 1: Hanmi Financial Corporation June 2004
HANMI FINANCIAL CORPORATION Nasdaq: HAFC June 2004
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
Slide 3: Agenda
Agenda Market Overview Hanmi Bank Overview Combination with Pacific Union Bank Second Quarter Events Financial Information Strategies after Merger
Slide 4: Korean-American Market Overview
Korean-American Market Overview One of the fastest growing ethnic groups 54% growth in 1990s vs. 13% general population California has the highest Korean-American population in the US 40% out of a total 2.1 million Highest rates of business ownership among ethnic groups 1 business per every 8 Korean
Slide 5: Experienced Management Team
Experienced Management Team Jae Whan Yoo - President & CEO Extensive experience in U.S. and Korean banking - 28 year banking career, including 10 years in the U.S. Previously served as director and board member of Industrial Bank of Korea, appointed by the Government of the Republic of Korea 15 year
Slide 6: Experienced Management Team
Experienced Management Team Eunice U. Lim - Senior VP & Regional Executive Officer (North) 24 years of commercial banking experience Previously served as SVP & Manager at Olympic Branch of Pacific Union Bank BS in Mathematics at Kingston Poly Tech in Surrey, England Suki H. Murayama - Senior VP & Re
Slide 7: Hanmi's Business Focus
Hanmi's Business Focus Commercial and retail banking Primary focus: Korean-American community Continue to cultivate banking relationships with multi-ethnic communities Full suite of financial products and services Traditional depository, loan, and trade finance products Investment and insurance prod
Slide 8: Hanmi's Consistent Performance
Hanmi's Consistent Performance 1999 2000 2001 2002 2003 EPS 0.88 1.14 1.21 1.2 1.34 Fully diluted EPS CAGR 13.5% 1999 2000 2001 2002 2003 Total Assets 740 1035 1159 1456 1786 Total Assets CAGR 22.4% 1999 2000 2001 2002 2003 DEPOSITS 656 935 1042 1284 1446 1999 2000 2001 2002 2003 Loans 474.7 620.5 8
Slide 9: Korean vs. Non-Korean Business
Korean vs. Non-Korean Business 1999 2000 2001 2002 2003 Total New Loans 266.5 296.5 382 452.9 622.9 Non-Korean New Loans 84.3 75.4 136.3 165.5 278.4 (In Millions) Hanmi has extended service to neighboring ethnic communities. 45%
Slide 10: PUB Acquisition Advances Hanmi's Business Strategy
PUB Acquisition Advances Hanmi's Business Strategy Increases market share in California Positions Hanmi as the clear market leader Increases brand awareness Creates significant opportunities to reduce costs Strengthens existing customer relationships while developing new relationships Continues to e
Slide 11: Hanmi & PUB's Market Area
Hanmi & PUB's Market Area Hanmi Bank Pacific Union Bank Considerable branch overlap offers significant consolidation opportunities.
Slide 12: Loan & Deposits Portfolios
Loan & Deposits Portfolios Construction Loans 41844 Consumer Loans 110369 Commercial Real Estate Loans 801946 C & I Loans 332090 Other Loans 11974 Loan Portfolio Deposits Portfolio Hanmi As of March 31, 2004 Construction Loans 19426 Consumer Loans 62461 Commercial Real Estate Loans 569418 C & I Loan
Slide 13: Second Quarter Events
Second Quarter Events Acquisition of Pacific Union Bank closed on April 30, 2004 Integration process underway Working closely with Bill Ruh of Castle Creek and Dan Davis of CBC Finalized major MIS vendor relationships 7 branch closures planned for 4Q 2004 Anticipated initial cost savings of $10.9 mi
Slide 14: Second Quarter Events (Cont.)
Second Quarter Events (Cont.) Fed funds decreased $75 million in May after termination of a very volatile $70 million average balance money market account relationship bearing interest at 1.7% Layoffs: Mid-quarter: Executives, including former Chairman, CEO, and Personnel Director-total base salarie
Slide 15: Deposits Retention
Deposits Retention (in millions) December 31, 2003 April 30, 2004 May 31, 2004 DDAs $730 $751 $746 MMDA, NOW, Savings 487 635 622 Certificates of Deposit 1,093 1,063 1,025 Total Deposits $2,310 $2,449 $2,393 Hanmi Bank $1,447 $1,513 $1,507 Former Pacific Union Bank 863 936 886 Combined $2,310 $2,449
Slide 16: Loan Growth
Loan Growth Gross Loans Gross Loans Gross Loans (in millions) December 31, 2003 April 30, 2004 May 31, 2004 Hanmi Bank $1,262 $1,311 $1,350 Former Pacific Union Bank 873 876 865 Combined $2,135 $2,187 $2,215
Slide 17: Most Recent Balance Sheets
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Slide 18: Most Recent Income Statements
Most Recent Income Statements
Slide 19: Compelling Investment Opportunity
Compelling Investment Opportunity Dominant franchise in the attractive, high growth California based Korean-American marketplace Experienced management team partnered with Castle Creek's proven capability integrating and operating highly profitable commercial banks Strong loan growth coupled with at