Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Nara Bancorp — Merger or Acquisition (December 2010)
27 slides from Hope Bancorp's merger presentation, Dec 13, 2010
Slide 1: Filing legend and additional information
EXHIBIT 99.1 Filed by Nara Bancorp, Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: Nara Bancorp, Inc. SEC Registration Statement No.: 000-50245 Additional Information and Where to Find It
Slide 2: Transforming the Korean-American Banking Landscape: Merger of Equals
EXHIBIT 99.1 Transforming Merger NARA BANCORP, of Equals the Korean-American INC. CENTER FINANCIAL Banking Landscape CORPORATION
Slide 3: Forward-Looking Statements and Additional Information
Additional In Statement Registration those SEC’s www.centerbank.com Participants NARA, participants the Forward-Looking This of estimates, expected “anticipates,” historical materially among potential such amended, or connection the obligation proxy solicitation presentation risks documents, propose
Slide 4: The Premier Nationwide Korean-American Bank
The Premier Unites $5.3 Nationwide $613.1 Strengthens Creates Source: Note:billion Pro the million the value SNL forma two largest in franchise; the Korean-American Financial. for assets, strongest market position calculations alland stakeholders $3.8 leading capitalization best-capitalized Financia
Slide 5: Focus on Strategic Leverage
Focus on Strategic Leverage Improve Employ Capitalize Provide Strong capital full best efficiency Opportunities creating pro onrange practices forma leading available and long-term of liquidity of scale products Korean-American pro integration revenue and forma position shareholder breadth and enhan
Slide 6: Merger Positions Pro Forma Company for Accretive Growth
Merger Positions Accretive Enhances Improved –Deepest Better Significantly Improves Complementary positions Benefits bench the ability to leverage ability earnings pro of enhanced the to forma management Board to in grow pro retain dealing forma company of operating organically and Directors with co
Slide 7: Nationwide Franchise with Increased Scale
(NASDAQ Nationwide Increased National $6,000 $4,000 $5,000 $2,985 $3,000 $1,000 $2,000 Korean-American $700 $400 $500 $600 $300 $265 $200 Pro $0 $100 A NARA –CLFC Source: 714 12316 Nationwide branches branch Forma branches $613 $348 $227 $144 region $5,252 $3,233 $2,969 $2,267 region SNL footprint;
Slide 8: Integration Plan Mitigates Risk
Integration Comparable NARA Friendly –Larger 7Best Korean-American Geographic Business Same Conservative practices combined CLFC core merger lines Plan corporate data-processing focus approach credit cost Mitigates and ofcompany equals; savings customer banking guidelines culture, to Risk integratio
Slide 9: Transaction Summary
Source: Transaction Name Fixed Pro Board Executive Break-up Required Expected Cost Deal Due Forma Diligence: Savings: Related Exchange ofSNL New Directors: Approvals: Closing: Fee: Management: Ownership: Market Summary Structure: Financial, Expenses: Approximately Company: $10 Completed, Ratio: Seco
Slide 10: Combined Company Brings Together Strong Management Teams
Combined Equal Brings New Chairman Ki NARA Holding Vice Chang 9CLFC Suh Chairman Key Board NARA Hwi together CLFC Park Company Board Chairman Board Kim Kevin ofNARA CLFC Chairman Directors two of Scott and Bank Directors S.strong Chief Management Kim Yoon-Suk Vice Holding representation President Ex
Slide 11: NARA Overview
Overview $3.0 Historical •–Leading 14 West Founded Expanded Entered Has First branches Eastbillion completed Korean-American Coast 2 5independent Coast –Positive Source: Nara New of highlights: branches Profitability Loan inprovision reported loss SNL Q3 Korean-American to Nara offices June in North
Slide 12: Center Financial Overview
Overview $2.3 24 •–2216 West International Nationally Leading years branch branches billion Midwest –Solid Source: Center 3rd CapitalCoast 3 2of 1 of offices branches provider service Korean-American recognized Center offices: inResults: branchtrade office: consecutive Q3 SNL reported 2010 levels So
Slide 13: Combined Nationwide Franchise Footprint
Combined Pro Nara Consolidation A NARA Nationwide forma gains region company Branch presence Franchise of opportunities operation Footprint becomes in Chicago CLFC exist largest and in region Southern Seattle; Korean-American of operation Center California gains bank presence with ainnational New Yo
Slide 14: Geographic Branch Footprint Detail
Geographic Southern New Northern NARA York Branch California / New Footprint Location Jersey Franchise Detail Franchise CLFC Branch Location
Slide 15: Pro Forma Deposit Market Share by Region
Pro Next NARA Southern New Northern #National Total Deposit Source: Note: includes: of Forma branches York Closest Deposits Southern CLFC SNL Market Wilshire Alameda, California /Market New Korean-American Financial. 2714 23 Pro ($000s) California 30Share 16 22 Jersey 57Bancorp Forma Share 29San 30
Slide 16: Pro Forma Financial Profile
3rdor Pro NARA Q3 Total Profitability Pre-Tax ROAA ROAE PTPP Net Efficiency Noninterest Balance Loans Securities Tangible Tang Risk Tier Leverage Asset NPAs Texas NCOs Loan Reserves Source: 90 Note: 2010 Quarter forma Forma Income Interest 1Based Common Assets Net Deposits Equity Loss more Dollars Q
Slide 17: Loan and Deposit Composition
0.5% Loan Farm NARA Consumer 70.4% CRE 3.3% & Portfolio +loans C&I 2.6% LD 1-4 21.7% Gross Deposit 0.1% Multifamily 1.4% CLFC 3.2% Other Consumer 2.7% 1-4 19.3% C&I Other FamilyConstr. Constr. 2.6% LD Mix = $1.6 Family$2.2 & & billion 2.5% Multifamily 1.7% Gross 68.1% Pro Farm Consumer Other 1.4% 1-
Slide 18: Combined Pro Forma Capital and Credit Quality
Combined Pro NARA 9/30/2010 TARP Common Bank Capital Tangible Leverage Tier Nonaccrual Performing OREO Net Total Gross Credit Loan NPAs Texas Source: Note:forma of 1NPAs Bank Risk Risk-Weighted Capital Loss Holding Dollars /Ratio Loans Capital Preferred Quality Ratios Guaranteed 3,591 CLFC Loans Rat
Slide 19: Pro Forma Financial Impact
un Pro Forma Financial Impact ee
Slide 20: Transaction and Earnings Assumptions
10.3% Transaction Exchange Earnings 2011 Approximately Cost 1.5% Core Savings: of $0.46 DealMean 7.5% $0.33 of 141R Amortized Expected (1) modeling Estimates Ratio: the Related Assumed FAS Revenue Assumptions Phased-in and combined $11.2 0.7804 2012 (1): Expenses: Enhancements: 141R credit CLFC’s De
Slide 21: Pro Forma Earnings Accretion/(Dilution)
PTPP Net Q3 Synergies Loan Other -Total NARA Accretion/(Dilution) CLFC Standalone Pro After 2011e Forma Income Pre-Tax Discount Loss Adjustments (6) Accretion/(Dilution) Earnings Tax Accretion/(Dilution) and Earnings (7) Q4 and (2) Reserve Financial Net EPS CLFC (38%) EPS CLFC to961 2011e Transactio
Slide 22: Attractive Investment Opportunity
Attractive Investment Opportunity
Slide 23: Attractive Investment Opportunity
Leading Korean- American Bank Accretive Superior Performance Financial Attractive enhancements Markets Management Veteran Creates expands significant from Creates and Increased to Expands Investment Higher earnings Increased Transaction Experienced the trade the two visibility franchise earnings str
Slide 24: Appendix
en Appendix i
Slide 25: Creates the Largest Korean-American Bank Outside California
1. Creates Total Assets Rank Pro 2. Forma 3. 4. 5. Total Company Deposits the Wilshire Company Gross Largest Nara Hanmi Center Saehan State Loans Bancorp, # Outside Korean-American Bancorp,5,252,415 Ticker Market Inc. Financial Bancorp Inc. Founded($000’s)($000’s)($000’s)($M) CA Cap. CA 3,994,937 NA
Slide 26: NARA Annual and Quarterly Historical Highlights
NARA Annual 2007 Total Profitability Pre-Tax ROAA ROAE PTPP Net Efficiency Noninterest Balance Loans Securities Tangible Tang Risk Tier Leverage Asset NPAs Texas NCOs Loan Reserves Source: (2) Note: Texas Income Interest 1Based Y Common Assets Net Deposits Equity Loss Dollars Quality ROAA /Ratio /16
Slide 27: CLFC Annual and Quarterly Historical Highlights
CLFC Annual 2007 Total Profitability Pre-Tax ROAA ROAE PTPP Net Efficiency Noninterest Balance Loans Securities Tangible Tang Risk Tier Leverage Asset NPAs Texas NCOs Loan Reserves Source: (1)Texas Note:Income Interest 1Based Y Common Assets Net Deposits Equity Loss Dollars Quality ROAA /Ratio /Hist