Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Q2 2019 Earnings Presentation
11 slides from Hope Bancorp's earnings presentation, Jul 17, 2019
Slide 1: 2019 Second Quarter Earnings Conference Call
2019 Second Quarter Earnings Conference Call Wednesday, July 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: Q2 2019 Financial Highlights
Q2 2019 Financial Highlights Net income of $42.7 million, or $0.34 per diluted common share Net interest margin declined 8bps Q‐o‐Q to 3.31%; compression of core net interest margin Earnings & excluding purchase accounting adjustments moderated to a 6bps decrease from a 7bps decrease in Net 1Q19
Slide 4: Loan Production & Portfolio Trends
Loan Production & Portfolio Trends New Loan Originations Funded New loan originations funded increased to $504 million; new loan commitments of $597 million 5.52% 5.46% ($ millions) 5.22% 4.97% 4.79% Lower Y‐o‐Y new loan volumes reflect more selective 4.56% 4.64% 4.40% 4.42% stance on CRE origin
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 $11.9 $12.1 $12.0 $123.3 $123.1 $11.8 $122.8 $121.9 $11.4 5.31% 5.32% $120.1 $119.6 $10.9 $11.1 $10.7 5.16% 5.21% $10.5 $116.8 3.84% $117.2 3.83% 3.66% 3.61
Slide 6: Noninterest Income
Noninterest Income Noninterest Income Noninterest income increased to $12.3 million in ($ millions) $19.9 2Q19 from $11.4 million in 1Q19, largely reflecting higher net gains on loan sales $16.1 $16.3 $16.5 $15.3 Quarter‐over‐Quarter Gain‐on Sale Variance $10.4 $13.5 Sold $76 million of resident
Slide 7: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense and Efficiency Ratio Breakdown of Noninterest Expense and FTE ($ millions) ($ millions) $73.0 $71.6 $70.8 $71.4 $68.5 $67.5 $70.2 $64.0 $61.8 $33.3 $29.1 $31.1 $33.6 $30.4 $32.1 $29.1 $30.5 $25.9 1,502 1,491 1,512 1,494 1,463 1,470 1,468 1,446 F
Slide 8: Deposit Trends
Deposit Trends Deposit Composition Total end‐of‐period deposits decreased 1% Q‐o‐Q ($ billions) Favorable shift in deposit mix with increases in lower‐cost $11.51 $11.73 $12.05 $12.16 $12.25 $12.17 deposits and decreases in time deposits $10.96 $10.99 $10.85 – 2% increase in noninterest bearing
Slide 9: Asset Quality
Asset Quality Nonperforming Assets Provision Expense & Net Charge Offs ($ millions) ($ millions) $7.3 $137.9 $138.5 $125.7 $125.2 $129.1 $5.4 $124.3 $8.3 $118.2 $6.3 $17.2 $10.8 $8.7 $113.0 $111.66 $21.8 $129.6 $9.0 $7.8 $132.2 $5.6 $2.8 $3.6 0.22% $114.4 $120.4 $2.8 $3.0 $102.5 $108.5 $109.2 $105.2
Slide 10: Near-Term Outlook & Strategies
Near-Term Outlook & Strategies Continuation of positive trends from first half of 2019 Favorable shift in mix of new loan production favoring higher‐yielding loans Gaining more traction with deposit gathering initiatives, leading to improved deposit mix and better deposit cost management Sta
Slide 11: 2019 Second Quarter Earnings Conference Call Q&A
2019 Second Quarter Earnings Conference Call Q&A 11