Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Investor Presentation (February 2012)
17 slides from Hanmi Financial's investor presentation, Feb 7, 2012
Slide 1: Hanmi Financial Corporation Investor Presentation
Hanmi Financial Corporation Investor Presentation February 6 and 7, 2012
Slide 2: Forward-looking statements disclaimer
Please read the following information before reviewing the information contained herein: This presentation contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify
Slide 3: Investment Highlights
Investment Highlights •Oldest and second largest Korean-American bank in the U.S. Attractive target market demographics Premier deposit franchise and commercial banking platform Aggressive problem asset resolution and significantly improved credit profile Five consecutive quarters of profitability T
Slide 4: Hanmi Bank is the oldest Korean-American franchise in the U.S.
Hanmi Bank is the oldest Korean-American franchise in the U.S., celebrating its 30th anniversary in 2012 #2 market share among Korean-American banks in California, which is the largest Korean-American market in the U.S. Specializes in commercial, SBA and trade finance lending Operates 27 branches in
Slide 5: Large Korean-American population in the U.S. with concentration in key markets
Large Korean-American population in the U.S. with concentration in key markets Los Angeles is home to the largest Korean-American population in the U.S. Other key markets include New York, New Jersey, Chicago, Texas, Seattle and Atlanta Continuing influx of Korean immigrants and funds from the ratif
Slide 6: Chairman and CEO
Joseph K. Rho Chairman of the Board2727 Prominent and well-respected business executive in the Korean-American community Significant financial services experience including Principal at J&S Investment and Joseph K. Rho Insurance Company, among others Jay S. Yoo President, CEO & Director341 Former Pr
Slide 7: Premier Management Team
Lonny Robinson Executive VP & CFO 1Premier Management Team 25 Former Executive Vice President and Chief Financial Officer of Center Financial Corp. and Opportunity Bancshares Previously served as a Project Consultant for Resources Global Professionals and a CPA with Ernst & Young Extensive M&A and c
Slide 8: Hanmi's 4Q11 earnings were its fifth consecutive profitable quarter
Hanmi’s 4Q11 earnings were its fifth consecutive profitable quarter, earning 9.50% ROE while maintaining a 10.36% tangible equity ratio Continued core earnings expansion for the year NIM increased 13bps to 3.68% in 2011Efficiency ratio(1) declined to 67.22% from 73.74% Dramatically improved credit q
Slide 9: Earned $5.5 million in 4Q11, bringing 2011 net income to $28.1 million
3.30%Earned $5.5 million in 4Q11, bringing 2011 net income to $28.1 million Return on Assets was 0.81% in 4Q11 and 1.01% in 2011Generated Return on Tangible Equity of 9.58% and 14.24% in Q4 and 2011, respectively Operating efficiencies improved with total overhead costs down 13% in 2011 from 2010 So
Slide 10: Downward trend in efficiency ratio
Source:Derived from Company’s 10-K, 10-Q’s and earnings releases.(1)Calculated as noninterest expense / (net interest income + noninterest income). See news release of 1/19/2012 for reconciliation of non-GAAP financial measures. 10 Downward trend in efficiency ratio due to continued alignment of exp
Slide 11: Hanmi has aggressively managed its problem assets in the past two years
Hanmi has aggressively managed its problem assets in the past two years Executed note sales rather than time consuming and labor intensive foreclosures This aggressive asset resolution strategy has resulted in a 82% and 53% decline in NPAs and classified loans, respectively, from peak levels NPAs de
Slide 12: NPLs charged down to 69% of original principal balances
As of 4Q11, NPLs have been charged down to 69% of original principal balances Net of specific reserves, NPLs are being carried at approximately 59% of original principal balances Hanmi has sold approximately $321 million of NPLs at 57% of original principal balances in the past eight quarters Source
Slide 13: Reserves / NPLs of 171% higher than national averages
Reserves / NPLs of 171% is significantly higher than national averages Reserves / Gross Loans of 4.6% is also much higher than national averages Source: Company data derived from 10-K and 10-Q filings. Peer data from SNL Financial13
Slide 14: Cost of deposits declined to 90 bps in 4Q11
Source: Derived from Company’s 10-K and 10-Q filings. Cost of deposits declined to 90 bps in 4Q11 from 266 bps four years ago
Slide 15: Expand Profitability and Pursue Growth Opportunities
Expand Profitability Reallocate excess liquidity Continue to expand NIM Lower adjusted efficiency ratio Pursue Growth Opportunities Ability to attract customers as a result of two competitors merging Other strategic opportunities both in-market and selected target markets 15
Slide 16: Raised new capital of $77.1 million in November
In November, raised new capital of $77.1 million in net proceeds, further solidifying its balance sheet Issued 12.6 million shares (adjusted for a 1-for-8 reverse split) The Bank’s tangible common equity to tangible assets ratio at December 31, 2011, was 12.48% up from 10.63% at September 30, 2011 A
Slide 17: Oldest and second largest Korean American bank in the U.S.
Oldest and second largest Korean American bank in the U.S. Well positioned branch network in Southern California’s Korean American neighborhoods. Premier deposit franchise and commercial banking platform Aggressive problem asset resolution resulting in significantly improved credit profile Substanti
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