Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — 13th Annual Investor Conference 2012
22 slides from Hanmi Financial's conference presentation, May 21, 2012
Slide 1: 13th Annual Investor Conference May 23, 2012
Slide: 1 Title: 13th Annual Investor Conference May 23, 2012
Slide 2: Forward-looking statements
Slide: 2 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 of the Private Securities Litigation Reform Act of 1995. In some cases, you can
Slide 3: Vision
Slide: 3 Title: Vision Other Placeholder: At Hanmi Bank we are committed to being regarded as the "quality and market leader in the banking industry, thereby becoming the first choice of employees, customers and shareholders." Established in 1982, Hanmi Bank was founded to serve the Korean-American
Slide 4: Investment Highlights
Slide: 4 Title: Investment Highlights Other Placeholder: Oldest and second largest Korean-American bank in the U.S.Attractive target market demographicsPremier deposit franchise and commercial banking platformAggressive problem asset resolution and significantly improved credit profileSix consecutiv
Slide 5: Premier Korean-American Bank in the U.S.
Slide: 5 Title: Premier Korean-American Bank in the U.S. Other Placeholder: Hanmi Bank is the oldest Korean-American franchise in the U.S., celebrating its 30th anniversary in 2012#2 market share among Korean-American banks in California, which is the largest Korean-American market in the U.S.Specia
Slide 6: Korean-American Banking Opportunity
Slide: 6 Title: Korean-American Banking Opportunity Other Placeholder: Large Korean-American population in the U.S. with concentration in key marketsLos Angeles is home to the largest Korean-American population in the U.S. Other key markets include New York, New Jersey, Chicago, Texas, Seattle and A
Slide 7: 2012 Developments
Slide: 7 Title: 2012 Developments Other Placeholder: Hanmi’s 1Q12 earnings were its sixth consecutive profitable quarter, earning 10.21% ROE while maintaining a 10.55% tangible equity ratioContinued core earnings expansion for the quarterNIM increased 3bps to 3.69% in 1Q12Efficiency ratio(1) decline
Slide 8: Six Consecutive Quarter of Profitability
Slide: 8 Other Placeholder: Earned $7.3 million, or $0.23 per diluted share in 1Q12Return on Assets was 1.08% in 1Q12Return on Equity was 10.21% in 1Q12 Return on Tangible Equity was 10.38% in 1Q12Operating efficiencies improved with total overhead costs down 11% year –over year Title: Six Consecuti
Slide 9: Improving Operating Efficiency
Slide: 9 Title: Improving Operating Efficiency Source: Derived from Company’s 10-K, 10-Q’s and earnings releases.(1) Calculated as noninterest expense / (net interest income + noninterest income). See news release of 1/19/2012 for reconciliation of non-GAAP financial measures. Other Placeholder: 9 O
Slide 10: Improving Deposit Mix
Slide: 10 Title: Improving Deposit Mix Other Placeholder: 10
Slide 11: Diversified Loan Portfolio
Slide: 11 Title: Diversified Loan Portfolio Source: Derived from Company’s 10-K and 10-Q filings. Cost of deposits declined to 90 bps in 4Q11 from 266 bps four years ago Other Placeholder: 11
Slide 12: Commercial RE Portfolio
Slide: 12 Title: Commercial RE Portfolio Source: Derived from Company’s 10-K and 10-Q filings. Cost of deposits declined to 90 bps in 4Q11 from 266 bps four years ago Other Placeholder: 12
Slide 13: Dramatic Credit Improvement
Slide: 13 Title: Dramatic Credit Improvement Other Placeholder: Hanmi has aggressively managed its problem assets in the past two yearsExecuted note sales rather than time consuming and labor intensive foreclosuresThis aggressive asset resolution strategy has resulted in a 82% and 62% decline in NPA
Slide 14: Conservatively Marked Portfolio
Slide: 14 Title: Conservatively Marked Portfolio Other Placeholder: As of 1Q12, NPLs have been charged down to 73% of original principal balancesNet of specific reserves, NPLs are being carried at approximately 63% of original principal balancesHanmi has sold approximately $232 million of NPLs at 66
Slide 15: Strong Reserves
Slide: 15 Title: Strong Reserves Other Placeholder: Reserves / NPLs of 161% is significantly higher than national averagesReserves / Gross Loans of 4.1% is also much higher than average of 3.02% of reserves held by US Banks and the 2.15% of banks with assets of $1 to $5 billion Source: Company data
Slide 16: Improving Asset Quality
Slide: 16 Title: Improving Asset Quality
Slide 17: Improving Classified Assets
Slide: 17 Title: Improving Classified Assets Other Placeholder: 17
Slide 18: Strategic Objectives
Slide: 18 Title: Strategic Objectives Other Placeholder: Focus on Resolving Regulatory OrdersRecent lifting of final order and replacing with MOU by the DFI.Expand ProfitabilityRedeploy excess liquidity Continue to expand NIM Improve efficiency ratioPursue Growth OpportunitiesLeverage long-term repu
Slide 19: Capitalization
Slide: 19 Title: Capitalization Other Placeholder: In November, raised new capital of $77.1 million in net proceeds, further solidifying its balance sheetIssued 12.6 million shares (adjusted for a 1-for-8 reverse split) The Bank’s tangible common equity to tangible assets ratio at March 31, 2012, wa
Slide 20: Investment Highlights
Slide: 20 Title: Investment Highlights Other Placeholder: Oldest and second largest Korean American bank in the U.S.Well positioned branch network in Southern California’s Korean American neighborhoods.Premier deposit franchise and commercial banking platformAggressive problem asset resolution resul
Slide 21: Non-GAAP Reconciliation
Slide: 21 Title: Non-GAAP Reconciliation Other Placeholder: 21 HANMI FINANCIAL CORPORATION AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES (UNAUDITED) PRE-TAX PRE-PROVISION INCOME ($ in thousands) 3/31/2012 12/31/2011 9/30/2011 6/30/2011 3/31/2011 12/31/2010 Net Income 7,341 $ 5,506 $ 4,203 $ 8,001 $ 1
Slide 22: Non-GAAP Reconciliation
Slide: 22 Title: Non-GAAP Reconciliation Other Placeholder: 22 HANMI FINANCIAL CORPORATION AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES (UNAUDITED) TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO 3/31/2012 12/31/2011 3/31/2011 Total Assets 2,771,471 $ 2,744,824 $ 2,879,666 $ Less Other Intangible As
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