Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Q1 2021 Earnings Presentation
15 slides from Hope Bancorp's earnings presentation, Apr 28, 2021
Slide 1: 2021 First Quarter Earnings Conference Call
2021 First Quarter Earnings Conference Call Wednesday, April 28, 2021 1
Slide 2: Forward Looking Statements & Additional Disclosures
Forward Looking Statements & Additional Disclosures This presentation may contain statements regarding future events or the future financial performance of the Company that constitute forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section
Slide 3: Q1 2021 Financial Highlights
Q1 2021 Financial Highlights Net Income EPS (diluted) Gross Loans Total Deposits $43.7MM $0.35 $13.70B $14.30B Earnings & Profitability Deposit Trends • Net interest income before provision for credit loss increased • Noninterest bearing deposits increased 13% Q‐o‐Q to a record 2% to $122.6 million,
Slide 4: Loan Production & Portfolio Trends
Loan Production & Portfolio Trends New Loan Originations Funded ($ millions) New loan originations funded of $847 million resulted 3.98% 3.39%1 3.44%1 in 1% growth in loans receivable Q‐o‐Q, or 4% 3.27% annualized 2.88% $832.0 $844.2 $847.1 $782.4 $65 $71 New loan originations included $305 mill
Slide 5: Active COVID-19 Loan Modifications & Expiration Schedule
Active COVID-19 Loan Modifications & Expiration Schedule • Active modifications outstanding as of 3/31/2021 totaled $949 million, or 6.9% of total loan portfolio • Based on modifications expiration schedule, active modifications outstanding expected to decrease substantially to approximately 2‐3% of
Slide 6: COVID-19 Impacted Portfolios
COVID-19 Impacted Portfolios - Hotel/Motel and Retail CRE - Hotel/Motel CRE Property Characteristics Retail CRE Property Characteristics • Largely represents “strip mall” type of properties (not shopping • Majority of Hotel/Motel properties are limited service facilities malls) • Less impacted by lo
Slide 7: Net Interest Income and Margin
Net Interest Income and Margin Average Loan Yield & Average 1M LIBOR Rate Net Interest Income & NIM ($ millions) 5.06% $122.6 $119.3 $117.6 $120.8 4.23% 4.20% 4.03% $109.8 3.94% 3.31% 1.41% 3.02% 3.06% 2.91% 0.35% 2.79% 0.16% 0.15% 0.12% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Net Interest
Slide 8: Noninterest Income
Noninterest Income Noninterest Income Noninterest income decreased to $8.8 million in ($ millions) 1Q21 vs. $11.4 million in 4Q20 driven largely by: $17.5 $1.5 million reduction in SWAP fee income $1.7 $1.2 million decrease in deposit service $13.3 fees related to exit of check cashing $11.2 $
Slide 9: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Breakdown of Noninterest Expense & FTE Efficiency Ratio & Noninterest Expense to ($ millions) Average Assets $72.1 $73.4 55.37% $71.1 $70.4 $3.61 54.42% 54.31% $6.3 $67.0 $2.42 53.77% 53.61% $7.3 $7.0 $2.5 $7.6 $1.6 $7.0 $2.5 $3.3 $3.6 $1.9 $1.3 $2.7 $1.2 $1.2 $2.9
Slide 10: Deposit Trends
Deposit Trends Q‐o‐Q growth annualized Deposit Composition ($ billions) Noninterest bearing demand deposits increased 13% Q‐o‐Q and increased to 38% of total deposits from 34% as of $14.12 $14.01 $14.33 $14.30 12/31/20 $12.84 +40% ‐3% +9% 0% MMA & NOW accounts decreased 4% Q‐o‐Q and accounted fo
Slide 11: Asset Quality
Asset Quality Nonperforming Assets Provision for Credit Losses & ($ millions) ($ millions) Net Charge Offs $170.5 $28.0 $27.5 $139.9 $147.6 $143.3 $18.5 $124.6 $22.0 $23.0 $21.0 $20.1 $152.0 $18.4 $17.5 $126.6 $123.2 0.11% 0.12% $116.8 $106.2 0.99% 0.06% 0.87% 0.86% 0.84% 0.74% 0.02% $3.3 0.02% 1Q20
Slide 12: Allocation of Allowance by Loan Type
Allocation of Allowance by Loan Type ($ thousands) Allocation of Allowance for Credit Losses Quarter‐over‐ under Current Expected Credit Loss (CECL) Methodology Quarter Change 1Q21 from 4Q20 Mar 31, 2020 Dec 31, 2020 Mar 31, 2021 Coverage Coverage Coverage Coverage Loan Type Amount Amount Amount Amo
Slide 13: Strong Capital & Liquidity Positions
Strong Capital & Liquidity Positions Sufficient Liquidity Sources Robust Capital Position 13.03% 12.87% 11.78% 11.64% Available 10.94% 11.08% 3/31/2021 ($ Thousands) Borrowing 10.22% 10.15% Capacity 10.00% FHLB Remaining Capacity $ 3,861,438 8.00% 6.50% FRB Discount Window Capacity $ 667,371 5.00% U
Slide 14: Near-Term Outlook
Near-Term Outlook Loan Growth: Mid‐ to high‐single digit growth projected for 2021 primarily driven by growth in non‐CRE loans (excluding PPP loans) Gain‐on‐Sale Income: Higher trending from growth in residential mortgage origination volumes Noninterest Expenses: Continuation of cost managemen
Slide 15: 2021 First Quarter Earnings Conference Call Q&A
2021 First Quarter Earnings Conference Call Q&A 15