Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Q1 2019 Earnings Presentation
13 slides from Hope Bancorp's earnings presentation, Apr 17, 2019
Slide 1: 2019 First Quarter Earnings Conference Call
2019 First Quarter Earnings Conference Call Wednesday, April 17, 2019 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 2019 Financial Highlights
Q1 2019 Financial Highlights First quarter results underscore commitment to profitable growth and margin preservation Net Net income of $42.8 million, or $0.34 per diluted common share Income Solid Net interest margin stabilized, down 2bps Q‐o‐Q to 3.39% driven by higher deposit costs largely
Slide 4: Loan Production & Portfolio Trends
Loan Production & Portfolio Trends New Loan Originations Funded New loan originations funded of $442 million; new loan 5.52% commitments of $462 million ($ millions) 5.22% 4.97% Lower new loan volumes reflect more selective stance on 4.64% 4.79% 4.56% 4.42% 4.26% 4.40% CRE originations, focus on
Slide 5: Net Interest Income and Margin
Net Interest Income and Margin Key Net Interest Income Drivers Net Interest Income & NIM Average Loans & Yield ($ millions) ($ billions) $126.4 $12.1 $123.3 $122.8 $123.1 $11.8 $11.9 $121.9 $120.1 $119.6 $11.4 5.31% $10.9 $11.1 5.21% $116.8 5.16% 5.16% $114.9 $10.5 $10.7 $10.4 3.77% 3.83% 3.84% 3.75
Slide 6: Noninterest Income
Noninterest Income Noninterest Income Noninterest income totaled $11.4 million for 1Q19, ($ millions) $19.9 down slightly from $11.6 million in 4Q18, primarily reflecting variances in net gains on loan sales $17.6 $16.1 $16.3 $16.5 $15.3 Quarter‐over‐Quarter Gain‐on Sale Variance $10.4 $13.5 No
Slide 7: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense and Efficiency Ratio Breakdown of Noninterest Expense and FTE ($ millions) ($ millions) $73.0 $71.6 $70.2 $70.8 $67.7 $68.5 $67.5 $33.3 $31.1 $30.4 $64.0 $61.8 $33.5 $29.1 $30.5 $33.6 $29.1 $25.9 1,502 1,512 1,463 1,470 1,491 1,494 1,468 FTE FTE
Slide 8: Deposit Growth Trends
Deposit Growth Trends Deposit Composition Total end‐of‐period deposits increased 1% Q‐o‐Q to a record $12.25 billion, reflecting growth in MMAs and time deposits ($ billions) Growth in interest bearing deposits led to 17bps increase in $12.05 $12.16 $12.25 total deposit costs $11.73 $11.51 Dep
Slide 9: Asset Quality
Asset Quality Nonperforming Assets Provision Expense & Net Charge Offs ($ millions) ($ millions) $7.3 $137.9 $138.5 $5.6 $124.3 $125.7 $125.2 $129.1 $5.4 $8.3 $118.2 $113.0 $6.3 $105.4 $17.2 $10.8 $8.7 0.22% $21.8 $129.6 $9.0 $7.8 $132.2 $3.6 $114.4 $120.4 $2.8 $2.8 $3.0 $19.1 $108.5 $109.2 $105.2 0
Slide 10: Near-Term Outlook & Strategies
Near-Term Outlook & Strategies Reiterate loan growth guidance of 3‐5% for 2019 despite the seasonally slower first quarter start Making progress with key priorities Favorable shift in mix of new loan production contributing to better loan yields Higher loan yields helping to protect net inte
Slide 11: 2019 First Quarter Earnings Conference Call Q&A
2019 First Quarter Earnings Conference Call Q&A 11
Slide 12: 2019 Key Priorities
2019 Key Priorities Profitable Growth – •New TMS leadership actively engaging front line to build new core deposit relationships •Targeting existing commercial customers rich in deposits Better Deposit Cost •Rebuilding online banking platform Management •Redesigned frontline incentive compensation p
Slide 13: Deposit Building and Asset Mix Initiatives
Deposit Building and Asset Mix Initiatives Enhanced Treasury • New leadership recruited in Q2 2018 from larger mainstream bank Management Sales • Initial target list of commercial customers identified Program • Adding highly qualified personnel to solely focus on core deposit solicitation efforts •