Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Q3 2018 Earnings Presentation
12 slides from Hope Bancorp's earnings presentation, Oct 17, 2018
Slide 1: 2018 Third Quarter Earnings Conference Call
2018 Third Quarter Earnings Conference Call Wednesday, October 17, 2018 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: Q3 2018 Financial Highlights
Q3 2018 Financial Highlights Net income of $46.4 million, up 4% over prior‐year Q3 Net EPS $0.36 per diluted common share versus $0.33 in Q3 2017 Solid Net interest margin declined 14bps to 3.47% Q‐o‐Q driven by higher deposit costs and flat loan Income yields $46.4MM Profitability Nonintere
Slide 4: Loan Production & Portfolio Trends
Loan Production & Portfolio Trends New Loan Originations Funded 4.97% 4.79% Total end‐of‐period loans receivable increased $256 ($ millions) 4.56% 4.64% 4.40% 4.42% million or 2% Q‐o‐Q and 9% annualized 4.26% 4.03% 4.15% $74 $181 $182 $168 YTD loan growth of 7%; on track to meet or exceed $31 $1
Slide 5: Deposit Growth Trends
Deposit Growth Trends Deposit Composition Total end‐of‐period deposits increased 3% Q‐o‐Q to a record $12.05 billion ($ billions) $12.05 Continue to be active in deposit gathering activities $11.73 $11.51 to support robust loan growth $10.96 $10.99 $10.85 $10.70 $10.64 $10.70 Growth in higher‐
Slide 6: Net Interest Income and Margin
Net Interest Income and Margin Key Net Interest Income Drivers Net Interest Income & NIM Average Loans & Yield ($ millions) ($ billions) $123.3 $126.4 $123.1 $117.2 $116.8 $120.1 $122.8 $11.1 $11.4 $11.8 $114.9 $9.7 $12.1 $8.5 $7.6 $10.4 $10.4 $10.5 $10.7 $10.9 $103.5 $8.8 $10.0 $8.8 $8.4 $9.3 $20.0
Slide 7: Noninterest Income
Noninterest Income Noninterest Income ($ millions) Total noninterest income decreased $1.8 million or $19.85 12% Q‐o‐Q to $13.4 million $18.19 $17.63 $16.12 $16.25 $16.45 Quarter‐over‐Quarter Difference $15.27 Gain on sale of SBA loans declined 33% due to $14.15 $10.40 $7.53 $13.45 lower amount
Slide 8: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense and Efficiency Ratio Breakdown of Noninterest Expense and FTE ($ millions) ($ millions) $73.0 $71.6 $67.8 $66.7 $67.7 $68.4 $67.5 $33.3 $31.1 $64.0 $61.8 $37.4 $32.6 $33.5 $29.0 $30.5 $29.1 $25.9 1,502 1,463 1,470 1,491 FTE 1,512 1,400 FTE FTE F
Slide 9: Asset Quality
Asset Quality Nonperforming Assets Provision Expense & Net Charge Offs ($ millions) ($ millions) $7.3 $8.3 $8.7 $6.5 $21.8 $17.2 $10.8 $129.6 $9.0 $5.6 $5.4 $27.5 $22.0 $120.5 $19.1 $108.5 $114.4 $109.2 0.24% $102.5 $3.6 0.22% $89.5 $89.3 $86.3 $2.8 0.90% 0.95% 0.13% $2.5 $2.3 0.87% 0.83% 0.89% 0.88
Slide 10: 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 •Rev
Slide 11: Near-Term Outlook & Strategies
Near-Term Outlook & Strategies Well positioned to meet or exceed loan growth guidance of 6‐8% for 2018 – Year‐to‐date loan growth of 7% Managing deposit costs will be key challenge and priority – Continuing to remain active in deposit gathering strategies to fund good lending opportunities that
Slide 12: Q&A
2018 First Quarter Earnings Conference Call Q&A 12