Hanmi Financial Corporation · NASDAQ:HAFC
Hanmi Financial — Investor Presentation (May 2005)
26 slides from Hanmi Financial's investor presentation, May 3, 2005
Slide 1: 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
Slide 2: Opportunities
Opportunities Opportunities Opportunities
Slide 3: 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
Slide 4: Target Market Growth Drivers
Target Market Growth Drivers Increased wealth in the Korean-American community Korea is the 11th largest economy with $28 billion current account surplus Continuing immigration trend from Korea Wealthier and better educated recent immigrants
Slide 5: Hanmi's Core Competencies
Hanmi's Core Competencies Ethnic markets Real estate lending Business lending
Slide 6: Loan & Deposits Market Shares
Loan & Deposits Market Shares Nearly 50% market share among publicly traded Korean-American banks in California HAFC 0.45 NARA 0.15 CLFC 0.21 WIBC 0.19 Deposits Net Loans Note: As of December 31, 2004 based on SEC filings of each company. Excludes 30% of NARA's balances, which are not from Californi
Slide 7: Experienced Management Team
Experienced Management Team Name Title Banking Experience Dr. Sung Won Sohn President and CEO 31 years Michael J. Winiarski SVP and CFO 25 years Suki H. Murayama SVP and Regional Executive Officer 29 years Eunice U. Lim SVP and Acting CCO 24 years
Slide 8: Future Growth - Organic and External
Future Growth - Organic and External Emphasis on sales & service Incentive compensation program Contiguous market penetration Upgrade existing products Introduce new products
Slide 9: By executing on our strategy...
By executing on our strategy... Customers will... refer business Employees will... say Hanmi is a great place to work Investors will... consider HAFC a superior investment
Slide 10: Financial Performance: Consistent Balance Sheet Growth
($ in millions) 2000 2001 2002 2003 2004 Loans 620 820 1000 1270 2235 Deposits 940 1040 1290 1450 2529 Assets 1030 1160 1460 1790 3104 Financial Performance Consistent Balance Sheet Growth
Slide 11: Loan Portfolio
Loan Portfolio As of March 31, 2005 Construction Loans 87960 Consumer Loans 165703 Commercial Real Estate Loans 1400543 C & I Loans 595269 Other Loans 7763
Slide 12: 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 $49 million low income housing loans booked in 2004 Sponsored six recipients of AHP grants awarded by the FHLB
Slide 13: Korean vs. Non-Korean Business
Korean vs. Non-Korean Business 2000 2001 2002 2003 2004 2005 1Q Korean New Loans 221.1 245.7 287.4 344.5 452.4 130.37 Non-Korean New Loans 75.4 136.3 165.5 278.4 339.3 144.57 ($ in millions) Hanmi has extended service to neighboring ethnic communities. 45% 25% 43% 36% 37% 53%
Slide 14: Sound Asset Quality
Sound Asset Quality Loan Loss Allowance/Gross Loans 2000 2001 2002 2003 6/26/1905 2005 1Q Hanmi 0.0178 0.0119 0.0114 0.0106 0.01 0.01 Non Performing Assets/Total Assets 2000 2001 2002 2003 6/26/1905 2005 1Q Hanmi 0.0025 0.0043 0.0044 0.0048 0.0019 0.0022
Slide 15: Solid Deposits Franchise
Solid Deposits Franchise 2003 1Q 2003 2Q 2003 3Q 2003 4Q 2004 1Q 2004 2Q 2004 3Q 2004 4Q 2005 1Q Non-interest bearing 400 440 460 480 490 760 720 730 770 Savings and money market 290 300 300 300 380 660 740 768 713 Certificates of deposit 650 720 740 670 610 930 950 1032 1062 ($ in millions)
Slide 16: Deposits Composition
Deposits Composition Non-Interest Bearing 769852 TDs of $100,000 or More 832928 TDs of Less than $100,000 229027 Interest Bearing Demand and Savings 713091 As of March 31, 2005
Slide 17: Revenue Growth
Revenue Growth 2000 2001 2002 2003 2004 2005 1Q* Net interest income 41.36 43.69 47.97 56.33 101.55 126.84 Non-interest income 15 17.25 21.2 20.32 27.6 30.03 ($ in millions) *Annualized numbers
Slide 18: Net Income and Diluted EPS
Net Income and Diluted EPS Diluted EPS1 2000 2001 2002 2003 2004 2005 1Q* Net Income 15.5 16.8 17 19.2 36.7 53.3 Net Income ($ in millions) 2000 2001 2002 2003 2004 2005 1Q* Diluted EPS 0.57 0.6 0.6 0.67 0.84 1.08 1Reflects recent 2:1 stock split *Annualized numbers
Slide 19: Return on Average Equity / Assets
Return on Average Equity / Assets ROA ROE 2000 2001 2002 2003 2004 2005 1Q ROE 0.1981 0.1756 0.1508 0.1451 0.1251 0.1332 ROA 0.0178 0.0153 0.013 0.0118 0.0137 0.0174 ROTE 0.2045 0.1798 0.1535 0.1475 0.2573 0.2856
Slide 20: Profitability Ratio Trends
Profitability Ratio Trends 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 Yield 5.09 % 5.25 % 5.32 % 5.66 % 6.06 % 6.38 % Cost of Funds 1.77 % 1.80 % 1.80 % 1.87 % 2.18 % 2.39 % Spread 3.32 % 3.45 % 3.52 % 3.79 % 3.88 % 3.99 % NIM 3.87 % 4.02 % 4.05 % 4.32 % 4.51 % 4.70 %
Slide 21: Efficiency Ratio Trend
Efficiency Ratio Trend *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 Efficiency Ratio 0.5565 0.5374 0.528 0.5123 0.5131 0.4777 0.5181 0.5029 0.4951 0.4438 Acquisition 0 0 0 0 0 0 0.0557 0.0087
Slide 22: PUB Merger Progress
PUB Merger Progress Integration substantially completed Achieved anticipated annualized cost savings of $10.9 million 5 branches closed Successful customer retention Number of employees reduced to 514 from 670
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
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 Balance sheet wel
Slide 25: Stock Summary
Stock Summary Ticker Symbol: HAFC (Nasdaq) Recent Price1: $14.55 Shares Outstanding1: 49.6 million Market Capitalization1: $722 million Average Daily Volume2: 186,318 shares Trailing Twelve Months Price/Earnings Ratio3: 15.73 Annual Dividend: $0.20 per share Current Dividend Yield1: 1.37% 1. As of A
Slide 26: Hanmi Financial Corporation
HANMI FINANCIAL CORPORATION Nasdaq: HAFC