Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Q2 2025 Earnings Presentation
19 slides from Hope Bancorp's earnings presentation, Jul 22, 2025
Slide 1: Second Quarter Earnings Conference Call
2025 Second Quarter Earnings Conference Call July 22, 2025
Slide 2: Forward Looking Statements & Additional Disclosures
Forward Looking Statements & Additional Disclosures Some statements in this presentation may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statemen
Slide 3: Q2 2025 Financial Overview
Q2 2025 Financial Overview Strong Capital & Liquidity Total Capital & TCE Ratio(1) • Total capital ratio was 13.76% at 6/30/25, reflecting the completion of the Territorial Bancorp Inc. acquisition at 6/30/25 • Strategically compelling acquisition added $1.7B of stable, low-cost deposits and $1.0B o
Slide 4: Strong Capital Ratios
Strong Capital Ratios Common Equity Tier 1 Capital Ratio Tangible Common Equity (“TCE”) Ratio(1) • Robust capital ratios: All capital ratios remain strong after Territorial Bancorp Inc. (“Territorial”) acquisition and well above requirements for “well-capitalized” financial institutions • Dividend:
Slide 5: Diverse & Granular Deposit Base
Diverse & Granular Deposit Base Deposit Composition by Product Type Deposit Composition by Customer Type Noninterest Bearing 5% 9% 7% 7% 7% Demand Deposits 3% 3% 3% 2% 2% 22% Time Deposits 40% 39% 39% 40% 40% 47% $15.9B Total Deposits 49% 51% 50% 51% 46% (at 6/30/25) Money Market, Interest Bearing D
Slide 6: Well-Diversified Loan Portfolio
Well-Diversified Loan Portfolio • Loan portfolio well-diversified across major loan types of nonowner-occupied CRE, C&I, $1.2B owner-occupied CRE, residential mortgage Avg Size: $2.3MM and other, and multifamily residential loans Multifamily Residential $4.5B • Addition of Territorial nearly doubled
Slide 7: Diversified CRE Portfolio with Low LTVs
Diversified CRE Portfolio with Low LTVs Total CRE: Distribution by LTV (excl. SBA) $8.4B > 55% - As a % of CRE Portfolio Avg Loan Size: > 60% - (at 6/30/25) 60%: 65%: > 65% - Total Loans: Weighted Avg LTV(1): 9% 6% 70% Multi-tenant Retail $2.4MM 50% - 55%: 5% 11% $1,590MM 41.4% 13% > 70%: 9% Industr
Slide 8: Granular CRE Portfolio, Diversified by Submarket
Granular CRE Portfolio, Diversified by Submarket CRE Portfolio by Size Segment CRE Portfolio by Geographic Submarket ($ Millions) # of Average Weighted Other States Loan Size Balance (at 6/30/25) ($ Millions) Loans Loan Size Average LTV(1) LA Fashion District ($ Millions) Illinois Gateway Cities > $
Slide 9: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin Net Interest Income Net Interest Margin ($ Millions) 2.69% $118 $106 $105 $102 $101 2.62% 2.55% 2.54% 2.50% 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 Net Interest Income Net Interest Margin (annualized) Territorial Acquisition Accounting Adjustments
Slide 10: Average Loans & Deposits, Yields & Rates
Average Loans & Deposits, Yields & Rates Average Loans Average Loan Yield Relative to Fed Funds Rate ($ Billions) 6.20% 6.16% $14.4 5.95% 5.88% 5.88% $13.6 16. 00 14. 00 $13.6 $13.6 $13.5 12. 00 10. 00 5.50% 5.43% 4.82% 8.0 0 6.0 0 4.50% 4.50% 4.0 0 2.0 0 0.0 0 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q2
Slide 11: Noninterest Income
Noninterest Income • 2Q25 noninterest income totaled $(23MM) Noninterest Income and included net loss on legacy securities AFS (excluding notable items) (1) repositioning of $39MM ($ Millions) GAAP Noninterest Income • 2Q25 noninterest income, excluding notable $(23.0) items: $16MM, up 1% QoQ and up
Slide 12: Noninterest Expense & Efficiency
Noninterest Expense & Efficiency Noninterest Expense Efficiency Ratio (excluding notable items) (1)(2) ($ Millions) GAAP Noninterest Expense 115.8% $109.5 $81.0 $81.3 $83.9 $77.6 $92.2 $79.1 $79.8 $81.3 $77.0 $22.7 $22.6 $23.3 $19.9 $22.7 72.0% $16.7 69.3% 69.7% $12.9 65.7% $12.4 $12.3 $12.3 67.7% 6
Slide 13: Asset Quality Metrics
Asset Quality Metrics • Asset quality remains stable, Territorial contributed residential mortgage loans with Allowance for Credit Losses & Coverage Ratio Criticized Loans Ratio pristine asset quality ($ Millions) • Allowance for credit losses (“ACL”) coverage $156 ratio: 1.04% of loans as of 6/30/2
Slide 14: Updated Management Financial Outlook for Full Year 2025 vs. 2024
Updated Management Financial Outlook for Full Year 2025 vs. 2024 2024 Outlook for 2025 (1) Anticipated Drivers & Comments on Update ($ Millions) End-of-Period Loans High single-digit % growth $ 13,633 ▪ Growth in 2H25 driven by strengthening production trends and frontline hiring (including HFS) (un
Slide 15: Appendix
Appendix 15
Slide 16: Summary Balance Sheet
Summary Balance Sheet QoQ YoY ($ in millions, except per share data) 6/30/25 3/31/25 6/30/24 % change % change Cash and due from banks $ 689.7 $ 733.5 (6)% $ 654.0 5% Investment securities 2,268.9 2,088.6 9% 2,172.9 4% Federal Home Loan Bank (“FHLB”) stock and other investments 106.8 103.5 3% 61.5 7
Slide 17: Summary Income Statement
Summary Income Statement QoQ YoY ($ in thousands, except share and per share data) 2Q25 1Q25 2Q24 % change % change Net interest income before provision for credit losses $ 117,533 $ 100,817 17 % $ 105,860 11 % Provision for credit losses 15,000 4,800 213 % 1,400 971 % Provision for credit losses ex
Slide 18: Appendix: Non-GAAP Financial Measures Reconciliation (cont’d)
Appendix: Non-GAAP Financial Measures Reconciliation (cont’d) Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financ
Slide 19: Appendix: Non-GAAP Financial Measures Reconciliation
Appendix: Non-GAAP Financial Measures Reconciliation Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measu