Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Merger or Acquisition (February 2004)
18 slides from Hanmi Financial's merger presentation, Feb 10, 2004
Slide 1: Hanmi Financial Corporation February 2004
HANMI FINANCIAL CORPORATION Nasdaq: HAFC February 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("PUB") 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 David W. Kim - Senior VP & CAO 15 years of banking experience Previously in-house counsel, Chase Manhattan Bank, N.A. in New York BS in Economics and Public Policy from Indiana University Law degree from the National Law Center, George Washington University Dongil Kim - P
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 Strategies
PUB Acquisition Advances Hanmi's Business Strategies 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
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: Deposits & Loans Market Shares
Deposits & Loans Market Shares Hanmi + Pacific Union: Nearly 50% share among Korean-American banks. HAFC 0.29 PUB 0.19 NARA 0.21 CLFC 0.15 WSBK 0.16 HAFC 0.3 PUB 0.19 NARA 0.2 CLFC 0.16 WSBK 0.15 Deposits Loans
Slide 13: Loan & Deposit Portfolios
Loan & Deposit Portfolios Construction Loans 45231 Consumer Loans 114691 Commercial Real Estate Loans 773223 C & I Loans 320762 Other Loans 10628 Loan Portfolio Deposits Portfolio Hanmi As of December 31, 2003 Construction Loans 19228 Consumer Loans 64745 Commercial Real Estate Loans 559593 C & I Lo
Slide 14: Acquisition of Pacific Union Bank
Acquisition of Pacific Union Bank Anticipated closing remains 2Q-04 Integration process underway Working closely with Bill Ruh of Castle Creek and Dan Davis of CBC Presently finalizing vendor relationships Organizational and functional responsibility review underway Anticipated initial cost savings
Slide 15: Korean-American Bank Comparison
Korean-American Bank Comparison (In Millions) Pro Forma HAFC NARA WSBK CLFC Total Assets $3,088 $1,258 $983 $1,027 Net Loans $2,110 $989 $748 $717 Deposits $2,309 $1,061 $857 $868 Net Loans/ Deposits 91.4% 93.21% 87.28% 82.60% ALL/Gross Loans 1.17% 1.25% 1.19% 1.24% NPL/Gross Loans 0.46% 0.51% 0.50%
Slide 16: Pro Forma Balance Sheet
Pro Forma Balance Sheet * Source: December 31, 2003 audited financial statements and earnings release
Slide 17: Pro Forma Income Statement
Pro Forma Income Statement * Adjustments exclude restructuring costs. ** Assumes cost savings projected to be achieved by December 2005.
Slide 18: 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
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