Professional Documents
Culture Documents
Nicole Whamond
Sheila Nordgren
Ellen Sim-Cordell
Troy Willis
Kendra Schwindt
Process
Bruce Johnson
Partners
Mark Pizzuti (Managing Partner) OR Mark Hetrick (Managing Principal) OR Troy Willis (Managing Partner) OR Jim McConnell (Managing Partner) AK John Delano (Managing Partner) AK Steve Raycroft (Managing Partner) TX Bruce Johnson (Managing Partner) TX Nicole Whamond (Operations) OR Kendra Schwindt (Marketing) WA Sheila Nordgren (Assistant) WA Ellen Sim-Cordell (temp employee) OR
Chris Chu
Sr. Managing Partner WA Co-Chief Credit Officer
Shawn MacDonald
Sr. Managing Partner CA Co-Chief Credit Officer
All have held Executive or Senior Management positions Roles in: production, asset/risk/project management Interest Rate hedging, investment banking, commercial banking, community banking, credit union, and savings loans
What SBA 504 FMPP Means to Hanmi Financial Conventional SBA 504 Loan
50%, 40%, 10%
SBA 504 50% 5,000,000 100% risk capital 50% LTV Loan Conventional 40% 4,000,000 CDC Loan 10% 1,000,000 Equity
Take existing non-SBA owner occupied sell it Reduce the balance sheet for Hanmi and make premiums Converting all owner occupied which qualifies to sell off the assets with no discounts
Secondary Market
Good loans
Replenish Capital
Speed
Execution
Capital
Income Increase
CH Capital Services
Solution Based Service
Balance Sheet Analysis Review the Stock Prices and other reports that pertain to loan loss reserves and capital, find the relationship stock price and capital One year goal, 16 month goal Where would the bank board and bank CEO like to see their bank be in 16 months? Create a economic game plan in place for execution and goal oriented towards production goals Review what OCC and other regulators would be reviewing
Reserve options for construction loan Establish a regional presence in the SBA 504 FMPP market Establish new sources of revenue stream from different clients Cross sell opportunity in business credit line, factoring and other financial services for diversification Become the premier bank in the Korean community CH Capital provides streamline goals for our partners to meet Hanmi Banks goals
CDC s Territory
No national information clearinghouse. CDC s are working for the banks whom they service, but will not share information with other CDC s Top 20 CDC control most of the volume, information is not passed on.
Community Banks
Even though Bankers do not like SBA 504 FMP program, CEO s, CFO s and CCO support it because of the regulators
Loan Officers not incentivized to do SBA 504 loan program, but are for SBA 7A Loans. SBA 7A loan production easier for bankers. Greater compensated for loan production with less third party involvement. SBA 7A PLP can generate up to 12 to 12.5 points in premiums, with no brain damage from CDC, vs. more complicated SBA 504 Program sporting a higher learning curve and greater CDC and third party involvement. Both programs carry similar risk. The credit criteria for community banks are tough, they want to lower CRE concentrations, have borrower lower their leverage which will not qualify through SBA loans.
Borrower
Consumers are unaware of the differences between SBA 504 and SBA 7a loans, or that they have a choice. Generally, the interest rate changes and risk dangers of a variable SBA 7A loan have not been adequately explained.
SBA Loan is closed then need to wait until the debenture settles, Average 45 to 90 days (Non- Bank Lenders cannot afford to wait 90 days for the opportunity to Pool the loan and buy the 85%) and community banks, because of regulatory issues cannot hold capital that long, also depending on the deal, community banks have limited capital and lending limits, so many community banks cannot touch a deal the bigger deal need transitional capital
After the SBA Debenture is closed, then we wait another 45 days because the Pool rule for loans in the same index, since there is no volume, we wait another 15 to 30 days or longer. Take an average community bank with 200 to 400 million in assets, Tier 1 Capital, CRE concentration, credit committee jitters, FDIC audits. Many banks do not want to learn something new, furthermore regulatory constraints will not allow community banks to lend
Finally after we close the loan, the process for secondary market is weak at best. There is only one bridge lender nationally, then there is only two non-bank lenders (currently selling to FIG Partners ) who do not have the capital to close the loans in volume, onesy or twosies at a time. Not enough to make a market . Zion's created this mess, Bank of the West died in wholesale, Community South has capital issues, Sterling in Texas is not coming back, GE does not want anything with it - exactly no possibility for volume. Except we are bringing a national REIT.
Do not waste time with incomplete files FMPP Approval CDC Approval Hanmi Credit Approval Condition of the loan Terms of the loan Deposit Banking Relationship goal Packaging 90 days of payment for closing Financial UCC Sweep prior to funding
3. After full package, CDCs work to get SBA loan number in 5 days at most 4. Find first lien lender commitment
5 days from full package can do ratio test, leverage test, stress test, all the items requested by banks but not by CDC
5. Final Close How we can get 30 to 50 days close no bank can do it better.
2011
Earnings
Hanmi: $1.25
Earnings
EXAMPLE TEXT
Earnings Earnings Earnings
2011
Earnings
2012
S
Strengths
W
Weaknesses
No Leader Bankers are lost Too Many Regulations Lost in the process
O
Opportunities
Bridge Lenders Premium Model Excess Servicing Model Pooler Model
T
Threats
Market Figures out Lack of understanding Process Dont know who is who I Waste lots of time 15 months left
2011
Strengths
Weaknesses
CRE concentration
Opportunities
Clean off all the loans Help other banks clean their balance sheet Increase Stock Price
Threats
Time Time Time 15 months
2012
Document, are you seeing what I am seeing, this simple process is breaking the backs of the SBA 504 loan process, this simple problem is the excuses that the industry accepts as the norm
Mobile society cannot sit still and needs continual mobile communication
Emails kill business productivity, it is being used as an excuse not to communicate to clients, but also use to deny ever receiving the document
No stream line process Lose documents through email, lose time trying to communicate
Nobody agrees on technology, excel spread sheet to underwrite, some use LMS, some use Fiserv, some use PFS 2000, so manually underwriting again, and then again, and then again
Excel spreadsheet
Major lenders such as Zions use self-created Excel sizers to analyze a loan, while most CDCs uses LMS and banks use Fiserv. This results in substantial time loss.
SBA FMPP Packaging First Lien Lender Packaging (FDIC and OCC requirements) SBA 504 CDC Packaging
Package all items needed for guarantee to be in force Review with a SBA Certified Attorney the documents required for the guarantee by the Federal Government All of SBA Documents needed
Application Pre-Qualification Approval Documents Closing Documents Funding Documents
Close
Close
Stochastic %D
40 35 30 25 20 15 10 5 0 40 35 30 25 20 15 10 5 0
Close
Close
Close
Parabolic SAR
Bollinger Bands
40 35 30 25 20 15 10 5 0
5/9/1997 5/9/1998 5/9/1999 5/9/2000 5/9/2001 5/9/2002 5/9/2003 5/9/2004 5/9/2005 5/9/2006 5/9/2007 5/9/2008 5/9/2009 5/9/2010
45 40 35 30 25 20 15 10 5 0
5/9/1997 5/9/1998 5/9/1999 5/9/2000 5/9/2001 5/9/2002 5/9/2003 5/9/2004 5/9/2005 5/9/2006 5/9/2007 5/9/2008 5/9/2009 5/9/2010
Close
High Low
NA
NA
NA
NA
NA
NA
2.01
1.79
49.67
202.51
181.82
41.00
137.15
391.03
310.52
51.11
-45.68
1.00
1.00
1.00
Return On Assets
-2.81
0.96
-29.67
8.84
-21.35
3.35
-5.45
14.18
Revenue Potential
300
200 2006 2007 2008 100 Axis Title 2009 2010 2011 0 Revenue Loan Loss ProvisionNet Income EPS Dec. Price CH Cap 7a CH Cap Sba 504 Hanmi Revenue Est. FMPP 2012 2013 Expon. (2006) -100
-200
-300
Number of Analysts
Share Information
52-Week Range: Market Capitalization: Common Shares Outstanding: Number of Institutional Shareholders: Shares Held By Institutions: % Held By Institutions: Dividend: N/A Dividend Yield: Last Stock Split Last Split Date: Book Value Per Share: EPS Estimate 2011: EPS Estimate : P/E on Estimate 2011: P/E on Estimate : Number of Analysts Rating on stock $0.86-2.80 $196 mil 151 mil 192 31 mil 20.66% N/A 2 for 1 2/16/2005 $1.14 $-0.10 N/A N/A N/A 2 1 hold, 1 no rating
Largest Shareholders