Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — KBW's Regional Bank Conference 2007
23 slides from Hanmi Financial's conference presentation, Feb 28, 2007
Slide 1: KBW's Regional Bank Conference February 28, 2007
KBW's Regional Bank Conference February 28, 2007
Slide 2: 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 3: Korean-American Market
Korea-American market nine-year history - Loans: 26% CAGR - Deposits: 23% 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 Korean-American Market (Source: US Korean Embassy and 2001
Slide 4: Target Market Growth Drivers
Increased wealth in Korean-American community Korea is the 11th largest economy with $17 billion current account surplus in 2005 Continuing immigration trend from Korea Wealthier and better educated recent immigrants Korea recently relaxed restrictions on overseas investment Target Market Growth Dri
Slide 5: Hanmi's Core Competencies
Expertise in serving ethnic immigrant market Expertise in real estate lending Expertise in small business lending Hanmi's Core Competencies
Slide 6: Loans & Deposits Market Shares
Commanding market share among Korean- American banks in California. Loans & Deposits Market Shares HAFC 2944.7 NARA 1279 CLFC 1429.4 WIBC 1661 Others 1682.1 Deposits Net Loans Note: As of December 31, 2006 based on SEC & FDIC filings of each company. Excludes 27% of NARA's balances, which are not fr
Slide 7: Experienced Management Team
Experienced Management Team Name Title Banking Experience Sung Won Sohn, Ph. D. President and CEO 33 years Kurt M. Wegleitner EVP and CCO 27 years Michael J. Winiarski SVP and CFO 27 years
Slide 8: Future Growth
Experienced management team Extensive branch network Emphasis on sales & services Incentive compensation plan Contiguous market penetration Upgrade existing products Introduce new products Future Growth Organic and External
Slide 9: Financial Performance: Consistent Balance Sheet Growth
Financial Performance Consistent Balance Sheet Growth 2000 2001 2002 2003 2004 2005 2006 Loans 620 820 1000 1270 2235 2469 2837 Deposits 940 1040 1290 1450 2529 2826 2945 Assets 1030 1160 1460 1790 3104 3414 3725 ($ in millions)
Slide 10: Financial Performance: Consistent Balance Sheet Growth
Financial Performance Consistent Balance Sheet Growth 2000 2001 2002 2003 2004 2005 2006 Loans 620 820 1000 1270 2235 2469 2937.4 ($ in millions) 2000 2001 2002 2003 2004 2005 2006 Deposits 940 1040 1290 1450 2529 2826 2944.7 Net Loans Deposits ($ in millions)
Slide 11: Loan Portfolio
Loan Portfolio Construction Loans 202 Consumer Loans 182 CRE-Investment Propertirs 757 CRE-Owner/User 938 C & I Loans 792 As of December 31, 2006
Slide 12: 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 fourth quarter of 2006 was $132 million. Spe
Slide 13: Korean vs. Non-Korean Business
Korean vs. Non-Korean Business 2000 2001 2002 2003 2004 2005 2006 Korean New Loans 221.1 245.7 287.4 344.5 452.4 800.8 774 Non-Korean New Loans 75.4 136.3 165.5 278.4 339.3 548.3 665 Hanmi has extended services to neighboring ethnic communities. ($ in millions) 46%
Slide 14: Sound Asset Quality
Sound Asset Quality 2000 2001 2002 2003 2004 2005 2006 Hanmi 0.004 0.0063 0.0065 0.0068 0.0027 0.0041 0.005 Non Performing Loans/Gross Loans 2000 2001 2002 2003 2004 2005 2006 Hanmi 0.0178 0.0119 0.0114 0.0106 0.01 0.01 0.0096 Loan Loss Allowance /Gross Loans 0.96% 0.50%
Slide 15: Deposits Composition
Deposits Composition Non-Interest Bearing 728 TDs of $100,000 or More 1383 TDs of Less than $100,000 296 Interest Bearing Demand and Savings 537 As of December 31, 2006
Slide 16: Non-interest Income Growth
Non-interest Income Growth 2000 2001 2002 2003 2004 2005 2006 Service charges on deposits 8.9 9.2 9.2 10.3 14.4 15.8 17.1 Trade finance fees 1.9 1.9 2.4 2.9 4 4.3 4.6 Remittance fees 0.5 0.6 0.8 1 1.7 2.1 2.1 Other service charges 0.8 0.8 1.1 1.5 1.5 2.5 2.4 Other income 0.4 0.4 1.2 1.3 1.2 1.5 1.5
Slide 17: Non-interest Income Growth
Non-interest Income Growth 2000 2001 2002 2003 2004 2005 2006 Service charges on deposits 8.9 9.2 9.2 10.3 14.4 15.8 17.1 Trade finance fees 1.9 1.9 2.4 2.9 4 4.3 4.6 Remittance fees 0.5 0.6 0.8 1 1.7 2.1 2.1 Other service charges 0.8 0.8 1.1 1.5 1.5 2.5 2.4 Other income 0.4 0.4 1.2 1.3 1.2 1.5 1.5
Slide 18: 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
Slide 19: Return on Average Equity / Assets
Return on Average Equity / Assets 2000 2001 2002 2003 2004 2005 2006 ROE 0.1981 0.1756 0.1508 0.1451 0.1251 0.1394 0.1433 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 0.2709 ROE ROA
Slide 20: Profitability Ratio Trends
Profitability Ratio Trends 2003 2004 2005 2006 Yield 5.03% 5.68% 7.00% 8.09% Cost of Funds 1.97% 1.93% 3.04% 4.50% Spread 3.06% 3.75% 3.96% 3.59% NIM 3.68% 4.31% 4.83% 4.78%
Slide 21: 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 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 Acquisition 0 0 0 0 0 0 0.0557 0.0087
Slide 22: 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 23: 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 Compelling Investment Opportunity
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