Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Sandler O'Neill 2012 West Coast Financial Services Conference
17 slides from Hanmi Financial's conference presentation, Mar 5, 2012
Slide 1: Hanmi Financial Corporation
ee 6 Hanmi Financial Corporation SANDLER O'NEILL 2012 West Coast Financial + PARTNERS Services Conference March 6, 2012
Slide 2: Forward Looking Statement Disclaimer
Forward Looking Statement Disclaimer LL ———————————————————— Please read the following information before reviewing the information contained herei This presentation contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Liti
Slide 3: Five Quarters of Profitability
—_ Oldest and second largest Korean- Five Quarters of Profitability 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 p
Slide 4: Premier Korean-American Bank in the U.S.
@ Premier Korean erican Bank in the U CA Korean-American Deposit Market Share!) ° Hanmi Bank is the oldest Korean- American franchise in the U.S., celebratingits 30" anniversary in 2012 ° #2 market share among Korean- American banks in California, which is the largest Korean-American market in the U
Slide 5: Korean-American Banking Opportunity
Korean-American Banking Opportunity Large Korean-American population inthe U.S. with concentration in key markets o Los Angeles is home to the largest Korean-American population in the U.S. o Other key markets include New York, New Jersey, Chicago, Texas, Seattle and Atlanta Continuinginflux of Kore
Slide 6: Premier Management Team
Premier Management Team Years Executive / w/ Years in Director Bank | Industry | Relevant Experience Joseph K. Rho 27 27 Prominent and well-respected business executive in the Chairman of the Board Korean-American community Significant financial services experience including Principal at J&S Investm
Slide 7: Premier Management Team
Executive / Director Lonny Robinson Executive VP & CFO Jung Hak Son Executive VP & cco Mark Yoon Senior VP & Chief Strategy Officer Years w/ Bank <1 11 Years in Industry 25 24 15 Premier Management Team Relevant Experience » Former Executive Vice President and Chief Financial Officer of Center Finan
Slide 8: 4Q11 earnings: fifth consecutive profitable quarter
—_ =~ °* Hanmi’s 4Q11 earnings were its fifth consecutive profitable quarter, earning 9.50% ROE while maintaininga 10.36% tangible equity ratio Continued core earnings expansion for the year Net Interest Margin o NIM increased 13bps to 3.68% in 2011 o Efficiency ratio!) declined to 67.22% from 73.74
Slide 9: Earned $5.5 million in 4Q11; 2011 net income $28.1 million
>_< * Earned $5.5 millionin 4Q11, bringing 2011 Tangible Equity/Tangible net income to $28.1 million Assets 14.00% + * Return on Assets was 0.81% in 4Q11 and 1.01% in 2011 12.00% ~ 10.00% ~ ° Generated Return on Tangible Equity of 8.00% | 9.58% and 14.24% in Q4 and 2011, respectively 6.00% -j 4.00%
Slide 10: Downward trend in efficiency ratio
Downward trend in efficiency ratio due to A A , Efficiency Ratio continued alignment of expense base to revenues 80.00% 70.00% Current platform will benefit from ° improvements driven by: 60.00% o Revenue growth 50.00% o Lower overhead expenses 40.00% o Elimination of non-recurring charges 30.00% 20
Slide 11: Aggressive management of problem assets
~__ ° Hanmi has aggressively managed its problem assets in the past two years Classified Loans/Tier1 + ALLL ° Executed note sales rather than time consuming and labor intensive 120% foreclosures | 100% + ° This aggressive asset resolution strategy has resulted in a 82% and 53% decline in NPAs and cl
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 $ in millions Nonperforming Loans and Reserves ° Net of specific reserves, NPLs are quarters being carried at approximately 59% of original principal balances ° Hanmi has sold approximately $321 million of NPLs at 5
Slide 13: Reserves / NPLs of 171% well above 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 from 10-Kand 20-0 flings P 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% Reserves/NPAs 1 4Q10 1Q11 2Q11 3Q11 4Q11 13
Slide 14: Attractive Deposit Funding Base
Attractive Deposit Funding Base Retail Time Deposits Brokered 14% 0% Demand - Noninterest- Bearing 27% Savings 5% Time Deposits of $100,000+ 35% Money Market and Now 19%
Slide 15: SBA Loan Originations
SBA Loan Originations ° Expand Profitability o Reallocate excess liquidity o Continue to expand NIM o Lower adjusted efficiency ratio ° Pursue Growth Opportunities o Ability to attract customers as a result of two competitors merging J | o Other strategic opportunities both in- | 1 I + 1 — 1 market
Slide 16: Capitalization
ww Capitalization In November, raised new capital of $77.1 million in net proceeds, further solidifyingits 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 Sep
Slide 17: Forward-looking statements disclaimer
Hanmi Financial Corporation 2012 West Coast Financial Services Conference March 6, 2012 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 o
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