Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Q1 2021 Earnings Presentation
22 slides from Hanmi Financial's earnings presentation, Apr 27, 2021
Slide 1: 1Q21 Earnings Supplemental Presentation
1Q21 Earnings Supplemental Presentation April 27, 2021 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Hanmi Financial Corporation (the “Company”) cautions investors that any statements contained herein that are not historical facts are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, incl
Slide 3: 1Q21 Highlights
1Q21 Highlights Net Income Diluted EPS ROAA NIM Efficiency Ratio TBVPS* $16.7M $0.54 1.08% 3.09% 52.92% $18.59 • Net income of $16.7 million, or $0.54 per diluted share, up 16.3% from $14.3 million, or $0.47 per diluted share from the prior quarter Net income includes $2.5 million of gains from th
Slide 4: 1Q21 Financial Summary
1Q21 Financial Summary ($ million, except EPS) Change (1,2) 1Q21 4Q20 1Q20 Q/Q Y/Y Income Statement Summary • Net income of $16.7 million or $0.54 per diluted share, Net interest income $ 46.0 $ 46.9 $ 44.0 -1.9% 4.6% up 16.3% from $14.3 million or $0.47 per share in the Noninterest income 9.8 8.8 6
Slide 5: Loan Portfolio Composition
Loan Portfolio Composition $4.82 Billion Loan Portfolio (as of 1Q21) Commercial Real Estate Portfolio Loan Portfolio Composition $ in millions Outstanding $3,372 Average Size $1.7 QTD Average Yield 4.34% RRE & Consumer Portfolio RRE (1) $ in millions 7% Outstanding $328 Average Size $0.4 QTD Average
Slide 6: Loan Portfolio Diversification
Loan Portfolio Diversification Loan portfolio is well diversified across property and business types. CRE Portfolio C&I Portfolio $3.37B $707M Other Wholesale 15% Trade 17% Hospitality Mixed Use 26% 5% (1) Industrial Other 43% 5% Manufacturing 15% Apartment 8% Retail Gas 25% Services 9% Station 6% O
Slide 7: Hospitality Segment by Location Type
Hospitality Segment by Location Type Hospitality segment(1) is $888 million, representing 18% of the loan portfolio. Convention Center 3% Casino 3% Hospitality Portfolio Detail • Average balance within the segment was Airport $3.3 million 7% • Weighted average debt coverage ratio of the segment was
Slide 8: Adjusted Pretax Pre-Provision Income
Adjusted Pretax Pre-Provision Income(3) ($ millions) 1Q21 4Q20 3Q20 2Q20 1Q20 • Adjusted operating revenue(3) decreased by 3.1% Income Statement Summary quarter-over-quarter Net interest income $ 46.0 $ 46.9 $ 45.6 $ 44.4 $ 44.0 • Adjusted operating revenue(3) includes SBA Adjusted Noninterest incom
Slide 9: Net Interest Income / Net Interest Margin
Net Interest Income / Net Interest Margin Net interest income was $46.0 million for the first quarter compared with $46.9 million for the prior quarter; net interest margin for the quarter was 3.09% (3.13%(1) excluding PPP loans) compared with 3.13% for the prior quarter (3.18%(1) excluding PPP loan
Slide 10: ACL Analysis
ACL Analysis Allowance for credit losses was $88.4 million as of March 31, 2021 generating an allowance for credit losses to loans of 1.83% (1.94%(1) excluding PPP loans) compared with 1.85% (1.97%(1) excluding the PPP loans) at the end of the prior quarter. COVERAGE 1.85% 1.83% RATIO $90.4 $1.0 $88
Slide 11: ACL by Loan Components
ACL by Loan Components ($ millions) March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 Allowance Loans Allowance Loans Allowance Loans Allowance Loans Allowance Loans Loan Components CRE $ 57.0 $ 3,372.3 $ 50.5 $ 3,353.8 $ 47.8 $ 3,264.4 $ 53.6 $ 3,266.2 $ 37.0 $ 3,187.
Slide 12: Asset Quality – Criticized Loans
Asset Quality – Criticized Loans Total criticized loans increased by 12% quarter-over-quarter. ($ millions) March 31, December 31, Additions / Reductions / Pandemic- 2021 2020 Downgrades Upgrades impacted Special Mention $ 96.1 $ 77.0 $ 33.8 $ 14.7 $ 72.0 Classified $ 147.4 $ 140.2 $ 28.5 $ 21.3 $ 6
Slide 13: Asset Quality – Nonaccrual Loans
Asset Quality – Nonaccrual Loans Nonaccrual loans(3) decreased 34% quarter-over-quarter. Nearly 60% of nonaccruals represent five loans of $3 million or more. $83.0(1) CRE - Hospitality $20.6 $55.1(1) CRE - Construction/land CRE - Hospitality $24.9 $8.9 CRE - Construction/land $11.0 C&I - Film tax c
Slide 14: Liquidity
Liquidity Hanmi Financial’s cash and due from banks to assets ratio increased from 6.3% to 10.0% quarter- over-quarter. Cash and Due From Banks over Liquid Asset Ratio(1) Total Assets 22.2% 10.0% 18.8% 17.4% 18.2% 8.9% 15.3% 5.9% 6.3% 5.2% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 (1) Liquid
Slide 15: Net Interest Income Sensitivity to Interest Rates
Net Interest Income Sensitivity to Interest Rates Nearly one-third of the loan portfolio reprices in one to three months. 33% of the CDs reprice every three months on average. 72% of the variable rate loans(1) are pegged to Prime. Loans – Months to Reset / Maturity Deposits – CD Maturities(2) $395.1
Slide 16: Securities Portfolio
Securities Portfolio The composition of the securities portfolio remains relatively unchanged quarter-over-quarter, with allocation to U.S. treasuries, and U.S. government agencies and sponsored agencies – mortgage- backed securities, collateralized mortgage obligations, and notes. ($ thousands) Mar
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ thousands, except share, per share data and ratios) March 31, December 31, September 30, June 30, March 31, 2021 2020 2020 2020 2020 Tangible Common Equity to Tangible Assets Ratio Assets $ 6,438,401 $ 6,201,888 $ 6,106,782 $ 6,218,163 $ 5,617,690 Less goodwill and other i
Slide 18: Non-GAAP Reconciliation: Pretax Pre-Provision Income
Non-GAAP Reconciliation: Pretax Pre-Provision Income ($ millions) 1Q21 4Q20 3Q20 2Q20 1Q20 Pretax income $ 24.2 $ 19.7 $ 22.8 $ 13.6 $ 3.4 less credit loss expense 2.1 5.1 - 24.6 15.7 Pretax, Pre-provision, income $ 26.3 $ 24.8 $ 22.8 $ 38.2 $ 19.1 less income from PPP gains (2.5) - - - - less incom
Slide 19: Non-GAAP Reconciliation – PPP (1Q21)
Non-GAAP Reconciliation – PPP (1Q21) ($ in thousands, except share and per share data) Three Months Ended As of March 31, 2021 March 31, 2021 Tangible Common Equity to Tangible Assets Net Interest Margin Tangible assets $ 6,426,843 Net interest income $ 46,001 Less first and second draw PPP loans (2
Slide 20: Non-GAAP Reconciliation – PPP (4Q20)
Non-GAAP Reconciliation – PPP (4Q20) ($ in thousands, except share and per share data) Three Months Ended As of December 31, 2020 December 31, 2020 Tangible Common Equity to Tangible Assets Net Interest Margin Tangible assets $ 6,190,276 Net interest income $ 46,877 Less PPP loans (295,702) Less PPP
Slide 21: Non-GAAP Reconciliation – PPP (3Q20)
Non-GAAP Reconciliation – PPP (3Q20) ($ in thousands, except share and per share data) Three Months Ended As of September 30, 2020 September 30, 2020 Tangible Common Equity to Tangible Assets Net Interest Margin Tangible assets $ 6,095,105 Net interest income $ 45,605 Less PPP loans (302,929) Less P
Slide 22: Non-GAAP Reconciliation – PPP (2Q20)
Non-GAAP Reconciliation – PPP (2Q20) ($ in thousands, except share and per share data) Three Months Ended As of June 30, 2020 June 30, 2020 Tangible Common Equity to Tangible Assets Net Interest Margin Tangible assets $ 6,206,421 Net interest income $ 44,442 Less PPP loans (301,836) Less PPP loan in