Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Investor Presentation (June 2007)
22 slides from Hanmi Financial's investor presentation, Jun 5, 2007
Slide 1: Hanmi Bank
6 Hanmi Bank June 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
Korean-American market nine-year (1997- 2006) 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-American High savings rate Korean-American Market (Source: US Korean Em
Slide 4: Target Market Growth Drivers
Increased wealth in Korean-American community Korea is the 12th largest economy with a $6 billion current account surplus in 2006. Continuing immigration trend from Korea Wealthier and better educated recent immigrants Korea recently relaxed restrictions on overseas investment. Target Market Growth
Slide 5: Hanmi's Core Competencies
Expertise in serving ethnic immigrant markets Expertise in real estate lending Expertise in small business lending Hanmi's Core Competencies
Slide 6: Loan & Deposit Market Shares
Commanding market share among Korean- American banks in California Loan & Deposit Market Shares HAFC 2984 NARA 1278 CLFC 1442 WIBC 1736 Others 1746 Deposits Net Loans Note: As of March 31, 2007, based on SEC & FDIC filings of each company. Excludes 27% of NARA's balances, which are not from Californ
Slide 7: Future Growth: Organic and External
Experienced management team Extensive branch network Emphasis on sales & service Incentive compensation plan Contiguous market penetration Upgrade existing products Introduce new products Future Growth Organic and External
Slide 8: Financial Performance: Consistent Balance Sheet Growth
Financial Performance Consistent Balance Sheet Growth 2000 2001 2002 2003 2004 2005 2006 1Q 07 Loans 620 820 1000 1270 2235 2469 2837 2886 Deposits 940 1040 1290 1450 2529 2826 2945 2984 Assets 1030 1160 1460 1790 3104 3414 3725 3778 ($ in millions)
Slide 9: Financial Performance: Net Loans and Deposits
Financial Performance Consistent Balance Sheet Growth 2000 2001 2002 2003 2004 2005 2006 1Q 07 Loans 620 820 1000 1270 2235 2469 2837.4 2885.7 ($ in millions) 2000 2001 2002 2003 2004 2005 2006 1Q 07 Deposits 940 1040 1290 1450 2529 2826 2944.7 2984 Net Loans Deposits ($ in millions)
Slide 10: Loan Portfolio
Loan Portfolio Construction Loans 216.1 Consumer Loans 169.7 CRE-Investment Propertirs 759.2 CRE - Owner/User 965.6 C & I Loans 792.4 As of March 31, 2007
Slide 11: 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 closed in the 1st quarter of 2007 Trade finance - The average loan portfolio balance in the first quarter of 2007 was
Slide 12: Korean vs. Non-Korean Business
Korean vs. Non-Korean Business 2000 2001 2002 2003 2004 2005 2006 1Q 07* Non-Korean New Loans 0.25 0.36 0.37 0.45 0.43 0.41 0.46 0.49 Korean New Loans 0.75 0.64 0.63 0.55 0.57 0.59 0.54 0.51 Hanmi has extended services to neighboring ethnic communities. 49%
Slide 13: Sound Asset Quality
Sound Asset Quality 2000 2001 2002 2003 2004 2005 2006 1Q 07 Hanmi 0.004 0.0063 0.0065 0.0068 0.0027 0.0041 0.005 0.0067 2000 2001 2002 2003 2004 2005 2006 1Q 07 Hanmi 0.0178 0.0119 0.0114 0.0106 0.01 0.01 0.0096 0.0108 Loan Loss Allowance / Gross Loans 1.08% 0.67% Non Performing Loans / Gross Loans
Slide 14: Deposits Composition
Deposits Composition Non-Interest Bearing 738 TDs of $100,000 or More 1418 TDs of Less than $100,000 301 Interest Bearing Demand and Savings 526 As of March 31, 2007
Slide 15: Non-interest Income Growth
Non-interest Income Growth 2000 2001 2002 2003 2004 2005 2006 1Q 07 Service charges on deposits 8.9 9.2 9.2 10.3 14.4 15.8 17.1 4.5 Trade finance fees 1.9 1.9 2.4 2.9 4 4.3 4.6 1.3 Insurance commissions 0 0 0.1 0.1 0.3 0.7 0.8 1.1 Remittance fees 0.5 0.6 0.8 1 1.7 2.1 2.1 0.5 Other service charges 0
Slide 16: Net Income and Diluted EPS
Net Income and Diluted EPS 2001 2002 2003 2004 2005 2006 Net Income 16.8 17 19.2 36.7 58.2 65.6 Net Income 2001 2002 2003 2004 2005 2006 Diluted EPS 0.6 0.6 0.67 0.84 1.17 1.33 Diluted EPS ($ in millions)
Slide 17: Quarterly Net Income and Diluted EPS
1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 Net Income 14.8 15.9 17.6 17.3 13 Net Income 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 Diluted EPS 0.3 0.32 0.36 0.35 0.26 Diluted EPS Net Income and Diluted EPS ($ in millions)
Slide 18: Return on Average Equity / Assets
Return on Average Equity / Assets 2000 2001 2002 2003 2004 2005 2006 1Q 07 ROE 0.1981 0.1756 0.1508 0.1451 0.1251 0.1394 0.1433 0.1068 ROA 0.0178 0.0153 0.013 0.0118 0.0137 0.0179 0.0182 0.0142 ROTE 0.2045 0.1798 0.1535 0.1475 0.2573 0.2933 0.2709 0.1912 ROE ROA
Slide 19: Profitability Ratio Trends
Profitability Ratio Trends 2003 2004 2005 2006 1Q 07 Yield 5.03% 5.68% 7.00% 8.09% 8.23% Cost of Funds 1.97% 1.93% 3.04% 4.50% 4.87% Spread 3.06% 3.75% 3.96% 3.59% 3.36% NIM 3.68% 4.31% 4.83% 4.78% 4.61%
Slide 20: 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 07 1Q 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 0.4364 Acquisition 0 0 0 0 0 0 0.0557 0.00
Slide 21: 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 22: 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