Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Q4 2021 Earnings Presentation
16 slides from Hope Bancorp's earnings presentation, Jan 25, 2022
Slide 1: Fourth Quarter and Full-Year 2021 Earnings Conference Call
2021 Fourth Quarter and Full-Year Earnings Conference Call Tuesday, January 25, 2022
Slide 2: Forward Looking Statements & Additional Disclosures
Forward Looking Statements & Additional Disclosures This presentation contains 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 21
Slide 3: Q4 2021 Financial Highlights
Q4 2021 Financial Highlights Earnings & Profitability Net Income • Net interest income before provision for credit losses increased 2% to $133.3 million $51.6M • Efficiency ratio improved 288bps Q-o-Q to 50.70%; noninterest expense to average assets improved 3bps to 1.67% • PPNR1 increased 10% Q-o-Q
Slide 4: Loan Production & Portfolio Trends
Loan Production & Portfolio Trends New Loan Originations Funded Loans Receivable (Excluding PPP) ($ Millions) ($ Billions) Q-o-Q increase Q-o-Q increase $13.72 13 .85 3.27% 3.44% 3.37%1 3.36%1 3.38% 13 .65 $1,242.9 $81 13 .45 $1,009.2 $844.2 $847.1 $894.1 $75 13 .25 $13.11 $539 $13.08 $53 +23% $12.9
Slide 5: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income & NIM Net Interest Margin ($ Millions) +2bps Q-o-Q increase $133.3 +6bps 3.13% $130.3 Deposit cost -2bps decline $126.6 +2% Loan yield $122.6 decline +3% (including accretion) $120.8 +3% 3.07% +2% Net cash 3.13% deployment 3.11% 3.06% 3.07% 3.02% 4Q
Slide 6: Interest Rate Risk
Interest Rate Risk New Loan Fixed/Variable & Average Rate Fixed / Variable Breakdown (As of 12/31/2021) 3.44% 1 3.27% 3.37% 1 3.38% 3.36% Hybrid 1 27% Variable 52% @4.15%2 41% 32% @3.23%2 50% 67% 64% Fixed 68% 48% 32% 50% 36% 33% @3.60%2,3 4Q20 1Q21 2Q21 3Q21 4Q21 Fixed Variable Avg Rate 1 (Excludin
Slide 7: Noninterest Income
Noninterest Income Noninterest Income • Noninterest income increased 23% Q-o-Q to $13.1 million vs. ($ Millions) $10.6 million in 3Q21 $13.1 • All components of primary customer-related service fees* $11.4 increased Q-o-Q $11.1 $10.6 $4.3 $8.8 • Sold $41.0 million of the guaranteed portion of SBA 7(
Slide 8: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense & FTE Efficiency Ratio & ($ Millions) $71.1 $73.1 $75.5 $74.2 Noninterest Expense to Average Assets $70.4 $6.4 $7.0 $8.42 $1.5 $10.0 1 $7.0 $1.7 $0.3 53.77% $1.9 $2.5 53.61% 53.58% $20.6 53.12% $22.1 $21.0 $18.3 $19.7 $47.0 50.70% $44.6 $40.9 $4
Slide 9: Deposit Trends
Deposit Trends Deposit Composition Deposit Cost Trend Average Deposits and ($ Billions) Cost of Interest-Bearing Deposits ($ Billions) Q-o-Q growth annualized $14.73 $15.06 $15.04 $15.07 $14.33 $14.30 $14.46 $14.99 0.51% $14.09 $14.38 0.48%0.44% 1.2% 0 $2.9 -0% $2.8 -1% +12% $3.0 +9% $5.8 $6.0 $4.0
Slide 10: Asset Quality
Asset Quality Nonperforming Assets Total Criticized Loans Provision (Credit) for Credit Losses ($ Millions) ($ Millions) & Net Charge Off (Recoveries) ($ Millions) $183.7 5.03% $170.5 4.82% $16.6 $27.5 4.07% 4.10% $143.3 $18.5 $675.5 1.28% $167.1 $660.0 3.58% $20.1 $152.0 $113.7 $111.8 $551.5 $379.0
Slide 11: Strong Capital Position & Returns
Strong Capital Position & Returns Capital Positions Dividends & Buybacks ($ Millions) $13.33 $13.51 12.42% 12.42% 11.70% 11.70% 11.01% 11.03% $47.2 9.98% 10.11% $2.8 $17.3 $17.3 $17.3 $17.3 $16.8 Total Risk-Based Tier 1 Leverage Tier 1 Common Tier 1 Tangible 4Q20 1Q21 2Q21 3Q21 4Q21 Capital Ratio Ra
Slide 12: Managed through an Uncertain 2021 and Delivered Significant Achievements
Managed through an Uncertain 2021 and Delivered Significant Achievements New loan production Continued to enhance the mix accelerated throughout 2021 Loan Deposit of deposits which contributed and positions Company to return to historically strong Production Mix to decreasing deposit costs throughou
Slide 13: Near-Term Outlook
Near-Term Outlook Loan Growth: Re-energized focus on business development expected to lead to high single-digit to low double-digit loan growth for 2022, excluding PPP Noninterest Expenses: Noninterest expense to average assets expected to be in the range of 1.65% to 1.70% Net Interest Margin:
Slide 14: Fourth Quarter and Full-Year Q&A
2021 Fourth Quarter and Full-Year Earnings Conference Call Q&A
Slide 15: Appendix
Appendix
Slide 16: Appendix: Non-GAAP Financials
Appendix: Non-GAAP Financials Management reviews select non-GAAP financial measures in evaluating the Company’s financial performance and in response to market participant interest. A reconciliation of the GAAP to non-GAAP financial measures utilized by management is provided below. Pre-provision Ne