Hanmi Financial Corporation · NASDAQ:HAFC

Hanmi Financial — Hoefer & Arnett 2005 Asian Banking Conference

23 slides from Hanmi Financial's conference presentation, Nov 1, 2005

  1. Slide 1: Hanmi Financial Corporation - Hoefer & Arnett 2005 Asian Banking Conference

    HANMI FINANCIAL CORPORATION Nasdaq: HAFC Hoefer & Arnett 2005 Asian Banking Conference November 1, 2005

  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 50% market share among publicly traded Korean-American banks in California HAFC 2747 NARA 1081 CLFC 1389 WIBC 1299 Deposits Net Loans Note: As of September 30, 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 31 years Kurt M. Wegleitner Kurt M. Wegleitner EVP and CCO 25 years Michael J. Winiarski Michael J. Winiarski SVP and CFO 25 years

  9. Slide 9: Future Growth - Organic and External

    Future Growth - Organic and External 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: Consistent Balance Sheet Growth

    ($ in millions) 2000 2001 2002 2003 2004 2005 3Q Loans 620 820 1000 1270 2235 2459 Deposits 940 1040 1290 1450 2529 2747 Assets 1030 1160 1460 1790 3104 3368 Financial Performance Consistent Balance Sheet Growth

  12. Slide 12: Loan Portfolio

    Loan Portfolio As of September 30, 2005 Construction Loans 138 Consumer Loans 178.4 Commercial Real Estate Loans 742.4 CRE-Owner/User 739.1 C & I Loans 689.6

  13. Slide 13: Specialty Lending Activities

    Specialty Lending Activities Robust SBA loan production 3rd largest SBA lender in LA district in 2004 4th largest SBA lender in California in 2004 Specialized in low income housing lending $59 million low income housing loans booked as of 3Q 2005 Sponsored seven applications for AHP grants Trade fin

  14. Slide 14: Korean vs. Non-Korean Business

    Korean vs. Non-Korean Business 2000 2001 2002 2003 2004 2005 3Q Korean New Loans 221.1 245.7 287.4 344.5 452.4 661.5 Non-Korean New Loans 75.4 136.3 165.5 278.4 339.3 443.6 ($ in millions) Hanmi has extended service to neighboring ethnic communities. 45% 25% 43% 36% 37% 42%

  15. Slide 15: Sound Asset Quality

    Sound Asset Quality Loan Loss Allowance/Gross Loans 2000 2001 2002 2003 2004 2005 3Q Hanmi 0.0178 0.0119 0.0114 0.0106 0.01 0.0099 Non Performing Assets/Total Assets 2000 2001 2002 2003 6/26/1905 2005 3Q Hanmi 0.0025 0.0043 0.0044 0.0048 0.0019 0.0023

  16. Slide 16: Solid Deposits Franchise

    Solid Deposits Franchise 2003 1Q 2003 2Q 2003 3Q 2003 4Q 2004 1Q 2004 2Q 2004 3Q 2004 4Q 2005 1Q 2005 2Q 2005 3Q Non-interest bearing 400 440 460 480 490 760 720 730 770 758 764 Savings and money market 290 300 300 300 380 660 740 768 713 660 634 Certificates of deposit 650 720 740 670 610 930 950 1

  17. Slide 17: Deposits Composition

    Deposits Composition Non-Interest Bearing 764.4 TDs of $100,000 or More 1089.9 TDs of Less than $100,000 258.3 Interest Bearing Demand and Savings 634.1 As of September 30, 2005

  18. Slide 18: Revenue Growth

    Revenue Growth 2000 2001 2002 2003 2004 2005 9 mos.* Net interest income 41.36 43.69 47.97 56.33 101.55 129.14 Non-interest income 15 17.25 21.2 20.32 27.6 32.5 ($ in millions) *Annualized numbers

  19. Slide 19: Return on Average Equity / Assets

    Return on Average Equity / Assets ROA ROE 2000 2001 2002 2003 2004 2005 9mos. ROE 0.1981 0.1756 0.1508 0.1451 0.1251 0.1391 ROA 0.0178 0.0153 0.013 0.0118 0.0137 0.0182 ROTE 0.2045 0.1798 0.1535 0.1475 0.2573 0.2945

  20. Slide 20: Profitability Ratio Trends

    Profitability Ratio Trends 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 Yield 5.09 % 5.25 % 5.30 % 5.66 % 6.06 % 6.38 % 6.82 % 7.04 % Cost of Funds 1.77 % 1.80 % 1.80 % 1.87 % 2.18 % 2.39 % 2.75 % 3.22 % Spread 3.32 % 3.45 % 3.50 % 3.79 % 3.88 % 3.99 % 4.07 % 3.82 % NIM 3.87 % 4.02 % 4.04 % 4.32

  21. Slide 21: 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 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 Acquisitio

  22. Slide 22: 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

  23. Slide 23: 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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