Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Community Bank Investor Conference (July 2013)
29 slides from Hanmi Financial's conference presentation, Jul 31, 2013
Slide 1: Community Bank Investor Conference
© Hanmi Financial Corp. Community Bank Investor Conference July 31, 2013 Cc. G. Kum, President & CEO Mark Yoon, SVP & CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements which involve inherent risks and uncertainties, in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Hanmi Financial Corporation cautions readers that many important factor
Slide 3: Second Quarter 2013 Highlights
Second Quarter 2013 Highlights = Quarterly net income was $9.5MM, while pre-tax income increased to $15.3MM from $14.8MM in Q113 = NiMrose to 4.10% from 3.86% in Q113, while yield on earning assets improved 16 bps to 4.59% and cost of interest-bearing liabilities by 11 bps to 0.78% = New loan produc
Slide 4: Hanmi Today
Hanmi Today The oldest and premier Korean-American bank: the 30! anniversary in 2012 Free from regulatory enforcement actions ii December 2012 Sustained profitability for eleven consecutive quarters Stable asset quality: PL down to $28 MM in Q213 Ranked 16 of the from $219 MM in Q409 100 top perform
Slide 5: Hanmi Tomorrow
Hanmi Tomorrow Vision: “To be the premier Korean American financial company” a A Strong risk Maximization of | management culture Strategic shareholders’ value Goals y | 1. Accomplishment of organic growth through new growth drivers 2. Opportunistically pursuing M&A growth Hanmi Financial Corp.
Slide 6: Franchise Network branches & loan production offices
Franchise Network 27 branches & 2 loan production offices (LPOs) strategically positioned in and near major Korean American communities Oe) ce Dallas, Texas (1 LPO)
Slide 7: Expanding Franchise Network - Dallas LPO
Expanding Franchise Network - Dallas LPO = Asian population in Dallas County increased 35% eo or phic between 2000 and 2010 = More than 40,000 Asian-owned business are located in the Dallas-Fort Worth Metroplex area Small Businesses = SBA approved $1.3 Billion small business loans in SAORI Texas in
Slide 8: Korean American Banking Opportunity
Korean American Banking Opportunity Large and growing Korean American Istion in the US 2010 Korean American Population” population in the U.S. State Population _% Total - Los Angeles and Orange County with the 1 California 451,892 31.7% largest Korean American population 2 New York 140,994 9.9% * 3
Slide 9: Korean American Banks in U.S.
Korean American Banks in U.S. Assets and Deposits as of Q113]$ in thousands Park | Branches | Total Assets Total Deposits BBCN Bancorp Inc. $5,833,597 $4,555,674 on Wilshire Bancorp Inc. 25 $2,756,420 $2,162,558 Central Bancorp Inc. 24 $1,799,164 $1,580,014 Woori America Bank? 7 $1,034,405 $913,914
Slide 10: Profitability - Sustained Earnings
Profitability - Sustained Earnings Net Income (in millions) I Net Income II Net Income before taxes 14.8 $15.3 $12.8 $14.4 $ $7.4 $8.6 Qu2 212 312 aai2 Qi 213 Hanmi Financial Co better
Slide 11: Profitability - Sustained Earnings
Profitability - Sustained Earnings Net Interest Margin 4.10% Quiz Q212 Q312 Q4i2 ais Q213 Hanmi Financial Cor
Slide 12: Profitability - Return and Efficiency
Profitability - Return and Efficiency ROAA & ROAE Efficiency Ratio OROAE OROAA 74.63% 66.56% 14.97% 15.02% 10.21fo 9.70% 56.44% 56.55% 10 alee A5% 1.37% Ql2 22 i242 QB Qa Quiz @2i2_— 312s IZ QS. Qa better
Slide 13: Profitability - Improving Yield & Cost
Profitability - Improving Yield & Cost Yield on Interest Earning Assets & Cost of Interest Be 4.59% 4.57% 4.56% Yield on Interest Earning Assets 1.30% Cost of Interest Bearing Liabilities 1.12% 0.83% 0.89% ages Qll2 Q212 Q312 Q412 Qll3 Q213
Slide 14: Safety - Improving Asset Quality
Safety - Improving Asset Quality in Nonperforming Loans ns) [MME Net Charge-Offs & NCO/Avg. Nonperforming Loans Net Charge-Ofs ME NPL / Gross Loans @ Net Charge-Offs / Average Gross Loans (Annualized) $50.2 $13.4 $11.3 a2 aziz 32 a2 a3 a3. qQ2 aziz, i223 as WAY YOU LI
Slide 15: Safety — Strong Capital
Safety — Strong Capital Tier] Leverage Capital Ratio Tier] Risk Based Capital Ratio 19.52% 19.37% . 7 r7.aem 874% 18.17% 14.70% 14.71% 14.95% 14.68% 15.25% ee: 12.90% ° Oo oO —O Regulatory requirement for Regulatory requirement for anell-cpitalinend sath well-capitalized banks Qll2 -Q212_— 312 412 Q
Slide 16: Growth - Leveraging Balance Sheet
Growth - Leveraging Balance Sheet Net Loans to Deposits 90.2% a2 Q212 Q312 Q4i2 Qi3 Q213
Slide 17: Growth — Solid Loan Growth
Growth — Solid Loan Growth Total Assets and Gross Loans (in millions) mTotal Assets m™ Gross Loans 2,847 2,842 $2,883 $2,771 2 : $2,792 $2,773 2,187 $2,049 pe : $1,977 $1,949 $1,958 - aii 212 312 Qai2 ais 213 better
Slide 18: Growth - Increasing Demand Deposits
Growth - Increasing Demand Deposits Total Deposits & Demand Deposits/Total Deposits ns) Total Deposits @ Demand Deposits / Total Deposits $2,396 $2,364 paises $2,363 $2,362 $2,333 8 | 31.1% 30.4% 30.1% 29.8 a 29.4% 28.5% Qil2 Q212 Q312 Q412 alls Q213
Slide 19: Investment Highlights
Investment Highlights * Attractive valuation Stock Price Change (7 ince July 2011 icet/Earnings? © Price*/Earnings’ 11.7 x LTM EPS = Hanmi Financial Corp. AY7/25/13 B® Price*/Tangible Book? 1.39 x = KBW Bank nim (213) 4.10% _— ™ TCE?/TA® 14.22% , 80% ¢ The oldest Korean American bank HAFC 10474 with
Slide 20: Hanmi
Hanmi &A iE WAY YOU LIVE
Slide 21: Appendix
Hanmi Financial Corp. Appendix WAY YOU LIVE
Slide 22: Growth - Diversified CRE Loan Portfolio
Growth -— Diversified CRE Loan Portfolio CRE* Loan Portfoli $1.8 Billion™ At Q213 Gas Station 15% Mixed Use 10% Apartment 6% Hotel/Motel 19% Church 4% Industrial 4% Warehouse 2% > Office 2% iP Car Wash 1% Wholesale 2% Retail 27% Others 8% * CRE loans include real estate loans and commercial and indu
Slide 23: Growth - Diversified Loan Portfolio
Growth -— Diversified Loan Portfolio Real Estate, C&l* and Consumer Loans (in mi Real Estate Loans Cl and Consumer Loans* $1,196 $1,211 $1,160 SUMS $1,110 $1118 an2 212 aai2 ans * Commercial and industrial loans include owner-occupied commercial real estate loons Hanmi Financial Cor
Slide 24: Growth - Increasing Core Deposits
Growth - Increasing Core Deposits LU Demand Depo $704 $9679 lm Demand Deposits ODemand Deposits / Total Deposits $694 $721 $710 $736 Aids RT Q2i2 | MMDA& Savings Ginmilions) | OMMDA (Incl. Now}&Savings/Total Dep. QN2_q2iz MMDA (Incl. Now}&Savings $1,035 $1,035 Time Certificate of Deposit (TCD 312 ai
Slide 25: Safety - Improving Asset Quality
Safety - Improving Asset Quality Total Assets & Nonperforming Assets/Total Assets (in millions) $2,847 $2,842 $2,883 Ii Total Assets @ Nonpertorming Assets / Total Assets $2,773 Q212 312 Q4i2 ais Q213 CHANGING
Slide 26: Safety - Improving Asset Quality
Safety - Improving Asset Quality Allowance for Loan and Lease Losses (ALLL) & ALLL Ratios m mm ALLL @ ALLL to Gross Loans @ ALLL to Nonpertorming Loans ns) $81 Qll2 Q212 Q312 Q412 Qll3 Q213 (CHANGING THE WAY YOU LIV
Slide 27: Safety - Strong Capital
Safety - Strong Capital Tier] Leverage Capital Ratio Based Capi 19.52% 19.37% 14.70% 14.71% 14.95% 14.68% wasn 878% 18.17% 13.44% 12.90% 15.25% a2 @2i2— 312 a2 3a. @2 @2i2— 32 IZ 3 as Total Risk Based Capital Ratio Tangible Common Equity/Tangible Assets* 20.79% 20.65% 13.89% 14.22% 18.74% 20.02% 19.
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation ‘Tangible Common Equity to Tangible Assets Ratio (Unaudited) (In thousands, except per share data) June 30, March 31, June 30, Hanmi Financial Corporation 2013, 2013 2012 Total assets s s 2,792,423 $ 2,846,652 Less other intangible assets (1,294) asi Tangible assets $ 2772161
Slide 29: Milestones
Milestones Becomes the largest Korean- yy American bank, surpassing since 1982 Pacific Union Launches Successfully Bank in assets wealth raises $120 management milion in NASDAQ business equity copital Commences Lists Hanmi Marks $4 billion primarily from operations at Financial in cased the Korean =
Hanmi Financial — Community Bank Investor Conference (July 2013) on 6ix