Hanmi Financial Corporation · NASDAQ:HAFC

Hanmi Financial — Wedbush Morgan 2006 Small Cap Investor Conference

24 slides from Hanmi Financial's conference presentation, Mar 1, 2006

  1. Slide 1: Hanmi Financial Corporation – Wedbush Morgan 2006 Small Cap Investor Conference

    HANMI FINANCIAL CORPORATION Nasdaq: HAFC Wedbush Morgan 2006 Small Cap Investor Conference March 2006

  2. Slide 2: Safe Harbor Statement

    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 Lit

  3. Slide 3: Opportunities

    Opportunities Opportunities Opportunities

  4. Slide 4: Korean-American Market

    Korean-American Market Korean-American market five-year history Loans: 29% CAGR Deposits: 24% CAGR 40% of 2.2 million Korean-American population reside in California. Highest rates of business ownership with one per every eight Korean-Americans High savings rate (Sources: US Korean Embassy and 2001

  5. Slide 5: Target Market Growth Drivers

    Target Market Growth Drivers Increased wealth in the Korean-American community Korea is the 11th largest economy with $28 billion current account surplus in 2004 Continuing immigration trend from Korea Wealthier and better educated recent immigrants

  6. Slide 6: Hanmi's Core Competencies

    Hanmi's Core Competencies Ethnic markets Real estate lending Business lending

  7. Slide 7: Loan & Deposits Market Shares

    Loan & Deposits Market Shares Nearly 40% market share among Korean- American banks in California HAFC 2826 NARA 1068.6 CLFC 1484 WIBC 1409.5 Others 1125 Deposits Net Loans Note: As of December 31, 2005 based on SEC filings of each company. Excludes 30% of NARA's balances, which are not from Californ

  8. Slide 8: Experienced Management Team

    Experienced Management Team Name Name Title Banking Experience Sung Won Sohn, Ph. D. Sung Won Sohn, Ph. D. President and CEO 32 years Kurt M. Wegleitner Kurt M. Wegleitner EVP and CCO 26 years Michael J. Winiarski Michael J. Winiarski SVP and CFO 26 years

  9. Slide 9: Future Growth - Organic and External

    Future Growth - Organic and External Experienced management team Extensive network Emphasis on sales & service Incentive compensation program Contiguous market penetration Upgrade existing products Introduce new products

  10. Slide 10: By executing on our strategy...

    By executing on our strategy... Customers will... refer business Employees will... say Hanmi is a great place to work Investors will... consider HAFC a superior investment

  11. Slide 11: Financial Performance: Consistent Balance Sheet Growth

    ($ in millions) 2000 2001 2002 2003 2004 2005 Loans 620 820 1000 1270 2235 2469 Deposits 940 1040 1290 1450 2529 2826 Assets 1030 1160 1460 1790 3104 3414 Financial Performance Consistent Balance Sheet Growth

  12. Slide 12: Financial Performance: Consistent Balance Sheet Growth

    Financial Performance Consistent Balance Sheet Growth 2000 2001 2002 2003 2004 2005 Loans 620 820 1000 1270 2235 2469 2000 2001 2002 2003 2004 2005 Deposits 940 1040 1290 1450 2529 2826 ($ in millions) ($ in millions) Loans Deposits 621 2,469 940 2,826

  13. Slide 13: Loan Portfolio

    Loan Portfolio As of December 31, 2005 Construction Loans 152.1 Consumer Loans 180.6 Commercial Real Estate Loans 733.6 CRE-Owner/User 705.9 C & I Loans 725.6

  14. Slide 14: Specialty Lending Activities

    Specialty Lending Activities Robust SBA loan production 9th largest SBA lender in California in 2005 Specialized in low income housing lending $59 million low income housing loans booked in 2005 Trade finance The average loan balance in the fourth quarter of 2005 was $79 million. Syndication of loan

  15. Slide 15: Korean vs. Non-Korean Business

    Korean vs. Non-Korean Business 2000 2001 2002 2003 2004 2005 Korean New Loans 221.1 245.7 287.4 344.5 452.4 800.8 Non-Korean New Loans 75.4 136.3 165.5 278.4 339.3 548.3 ($ in millions) Hanmi has extended service to neighboring ethnic communities. 45% 25% 43% 36% 37% 41%

  16. Slide 16: Sound Asset Quality

    Sound Asset Quality Loan Loss Allowance/Gross Loans 2000 2001 2002 2003 2004 6/27/1905 Hanmi 0.0178 0.0119 0.0114 0.0106 0.01 0.01 Non Performing Loans/Gross Loans 2000 2001 2002 2003 2004 2005 Hanmi 0.004 0.0063 0.0065 0.0068 0.0027 0.0041 1.00% 0.41%

  17. Slide 17: Non-interest Income Growth

    Non-interest Income Growth 2000 2001 2002 2003 2004 2005 Service charges on deposits 8.9 9.2 9.2 10.3 14.4 15.8 Trade finance fees 1.9 1.9 2.4 2.9 4 4.3 Remittance fees 0.5 0.6 0.8 1 1.7 2.1 Other service charges 0.8 0.8 1.1 1.5 1.7 2.5 Other income 0.4 0.4 1.2 1.3 2.4 3.3 Non-core income 2.3 4 6.5

  18. Slide 18: Non-interest Income Growth

    Non-interest Income Growth ($ in millions) 2000 2001 2002 2003 2004 2005 Service charges on deposits 8.9 9.2 9.2 10.3 14.4 15.8 Trade finance fees 1.9 1.9 2.4 2.9 4 4.3 Remittance fees 0.5 0.6 0.8 1 1.7 2.1 Other service charges 0.8 0.8 1.1 1.5 1.7 2.5 Other income 0.4 0.4 1.2 1.3 2.4 3.3

  19. Slide 19: Net Income and Diluted EPS

    Net Income and Diluted EPS Diluted EPS1 '00 '01 '02 '03 '04 '05 Net Income 15.5 16.8 17 19.2 36.7 58.2 Net Income ($ in millions) '00 '01 '02 '03 '04 '05 Diluted EPS 0.57 0.6 0.6 0.67 0.84 1.17 1Reflects recent 2:1 stock split

  20. Slide 20: Return on Average Equity / Assets

    Return on Average Equity / Assets ROA ROE 2000 2001 2002 2003 2004 2005 ROE 0.1981 0.1756 0.1508 0.1451 0.1251 0.1394 ROA 0.0178 0.0153 0.013 0.0118 0.0137 0.0179 ROTE 0.2045 0.1798 0.1535 0.1475 0.2573 0.2933

  21. Slide 21: Profitability Ratio Trends

    Profitability Ratio Trends 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 Yield 5.09% 5.25% 5.30% 5.66% 6.06% 6.40% 6.84% 7.08% 7.36% Cost of Fund 1.77% 1.80% 1.80% 1.87% 2.18% 2.34% 2.72% 3.22% 3.66% Spread 3.32% 3.45% 3.50% 3.79% 3.88% 4.06% 4.12% 3.86% 3.70% NIM 3.87% 4.02% 4.04% 4.32% 4.5

  22. Slide 22: Efficiency Ratio Trend

    Efficiency Ratio Trend *Orange color reflects restructuring expenses related to the PUB merger 2002 4Q 2003 1Q 2003 2Q 2003 3Q 2003 4Q 2004 1Q 2004 2Q 2004 3Q 2004 4Q 2005 1Q 2005 2Q 2005 3Q 2005 4Q 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.

  23. Slide 23: Stock Performance

    Stock Performance Investing $100 (price reflects dividends) HAFC NASDAQ S & P Financials 12/1/2000 100 100 100 20.4 1/1/2004 115.11 112.23 99.57 31.6 2/1/2004 115.11 87.1 92.89 43.9 3/1/2004 117.02 74.49 90 4/1/2004 111.95 85.66 93.22 5/1/2004 116.01 85.43 96.79 6/1/2004 131.91 87.45 96.67 7/1/2004

  24. Slide 24: Compelling Investment Opportunity

    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

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