Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — BBCN Bancorp — Investor Presentation (February 2015)
26 slides from Hope Bancorp's investor presentation, Feb 5, 2015
Slide 1: Corporate Presentation 1st Quarter 2015
2 BBCNBancorp” CORPORATE PRESENTATION Ist QUARTER 2015 a «
Slide 2: Safe Harbor
Safe Harbor The Company may make projections or other forward-looking statements under Section 27A of the Secunties Act of 1933, as amended (the “Securities Act’), and Section 21E of the Act of 1934, as (the “E: Act’) regarding future events or the future financial performance of the Company. Such f
Slide 3: Corporate Profile
Corporate Profile © Largest Korean-American bank in the nation * Created through successful merger of Center and Nara * Highest lending capacity among niche peers = 11M largest SBA lender in the U.S.A. by volume = Only Korean-American bank with presence in Korea * Most comprehensive offering of cash
Slide 4: BBCN's Mission & Values
BBCN’s Mission & Values ———— <7 * We will be the nation’s premier Asian-American bank, with strong and mutually rewarding relationships Integrity with our customers ° Transparency T * Our mission is to be a strong banking partner to middle market and small businesses, their owners and ‘employees, an
Slide 5: Better Banking from California to New York
Better Banking from California to New York 50 Branches and 6 Loan Production Offices in the U.S. +1 Seoul Representative Office Seattle (abranches ‘+11P0) New York/ New Jersey (Sbranches) Southern California (26 branches) (2 BBCNBancorp”
Slide 6: Banking Experience of Executive Management
Banking Experience of Executive Management F Kevin Kim (CEO) Kyu Kim (COO) Cha Park (CRBO) Doug Goddard (CFO) Sook Goo (COA) Daniel Kim (CPO) David Kim (GC & CAO) Jason Kim (CLO) Mark Lee (CCO) Brian Van Dyk (CIO) Min You (CRO) e) 5 10 15 20 25 30 35 li Korean-American &i Mainstream (2 BBCNBancorp”
Slide 7: Q4 and FY 2014 Highlights
Q4 and FY 2014 Highlights Continued consistent core revenue generation and high profitability, while pursuing new business initiatives, + Q4 net income of $22.7 milion, oF $0.29 EPS, contribute to FY record earnings of $88.6 milion, or $1.03 EPS + Record $4.1 millon gain on sale of SBA loans for 04
Slide 8: Positive Net Income Trends
Positive Net Income! Trends (S millions) $81.8 $88.6 $23.9 $23.6 $22.7 522.7 $22.2 $22.3 6, 4 $22.5 a a @ @ a4 a @ @ a a a@ a a 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2011 201220182014 iets Netncame beefed fom pret ston outing eters edo mergers étalon Avr 3. (2 BBCNBancorp”
Slide 9: Profitability Measurements (Q4 2014)
Profitability Measurements (94 2014) | 10.42% 1.28% 8.88% 1.10% ROAA ROAE BBCN 3.90% 59.69% | Peer 3.63% 49.83% _ Median (os of Q3.2014) NIM Efficiency Ratio ote: 032014 ess benefted from octal ef $5.0 lion in malo pretax aequstion ocourting edustmers related to mergers. o5 sealed on Append side 25.
Slide 10: Strong Organic Loan Growth
Strong Organic Loan Growth — Supplemented by Strategic Expansion — Loans Receivable New Loan Originations $ Billions waa waa waz war ayfarjaoi1 32/31/2012 12/31/2013 12/31/2014 2012 2013 2014 P Organic Growth Strategic Growth (2 BBCNBancorp” 10
Slide 11: Loan Portfolio by Region
Loan Portfolio by Region Midwest 5% Southern California Region cox 16% Eastern Northern California 8% verse national footprint spreads cre‘ (2 BBCNBancorp” risk and provides greater growth opportuni Southern California '* 1986: Founded by Los Angeles-based Korean- ‘American investors Northern Califo
Slide 12: Loan Portfolio Composition
Loan Portfolio Composition $5.57 Billion (as of 12/31/2014) Portfolio Composition By Region ‘Owner- Occupied CRE 29% Nonowner- Occupied CRE 51% (2 BBCNBancorp” Southern Northern Pacific. Midwest Eastern California California Northwest Region 12
Slide 13: Loan Portfolio Rate Sensitivity
Loan Portfolio Rate Sensitivity | Loan Rate Mix | | Distribution by Loan Type $2.87 Billion @4.755 Loans with Floors $897.9 milion Weighted Avg. Rate of 4.94% Outstan« Avesi ave | ave HoT ($ millions) ($ thousands) Yield mv ‘CRE $4,441.9 $1,223.6 4.58% 64.6 cal $1,038.4 $367.1 4.04% Other $39.8 $36.
Slide 14: CRE Portfolio
CRE Portfolio $4.44 Billion CRE (as of 12/31/2014) By Region Hotel & Motel All Others 3 34% Retail - Multi 2% Gas Station i & Car = Wash Watehouta 10% 10% Southern Northern Pacific Midwest Eastern ote: he nes opr pe representing sh 1 of tee CE porfota inn aed oe Ret Spe Charch, escent, fe Gofcornean
Slide 15: C&I Portfolio
C&I Portfolio $1.04 Billion cal (as of 12/31/2014) By Region All Others 42% Wholesale Trade 37% Southern Northern Pacific Midwest Eastern we: oe ei bss eeig ta Nef tc pate, Inciting: os Staton, Rstourot. Real Ente & Leg. Reta Loundes/oneieaers usvr _-<Calffornia California Northwest Region ‘Store no
Slide 16: Stable Asset Quality
Stable Asset Quality Total Nonperforming Assets ($ millions) $56.2 1 Nonaccrual loan trends have been stable throughout 2014 + On average, greater than 50% of nonaccrual loan balances have been “Current and Paying 1s Agreed” © TORs are accruing restructured loans which are “Current and Paying as Agr
Slide 17: Deposit Growth Trends
Deposit Growth Trends Total Deposits of $5.69 Billion Non-Interest Bearing DDA {as of 12/31/2014) Growth Trends ($ millions) Noninterest bearing DDAS 27% sadings 4% azfsi/2011 12/31/2012 12/31/2013 12/31/2014 (2 BBCNBancorp” v7
Slide 18: Capital Strength & Deployment
Capital Strength & Deployment (As of 12/31/2014) 14-80% 13.64% Total Risk- Tier 1 Leverage Tier 1Common Tangible Based Capital Capital Ratio Equity Ratio Common Ratio Equity/ Tangible Assets 1 Excess Capital (2 BBCNBancorp” Redeemed $122 million TARP capital in 2Q 2012 Re-initiated quarterly cash di
Slide 19: BBCN's Chosen Destiny
BBCN’s Chosen Destiny | © $10 billion-plus asset bank © The most successful U.S. enterprise founded by Korean- Americans © Diversified financial services company © The representative enterprise of the Korean-American banking industry —in the U.S. and in Korea M2 BBCNBancorp" 19
Slide 20: 2015 Outlook & Strategies
2015 Outlook & Strategies © Launch of new products and services * Rollout of Residential Mortgage products across national platform by mid-2015 + Launch new Credit Card product Q2 2015, = Launch Wealth Management services Q2 2015 © Continued focus on organic and strategic growth opportunities © Cont
Slide 21: Investment Opportunity
Investment Opportunity [ Premier Korean-American Bank in the Nation } Strong and consistent core earnings power and capital Diversified into 5 targeted geographic markets Well positioned to continue proven track record of growth Deep and experienced executive management team Ample growth opportuniti
Slide 22: Q4 2014 Financial Summary
Appendix — Q4 2014 Financial Summary ! 942014 932014 942013 $ 22,687 $ 21,420 $ 18071 Diluted earnings per share $ 0.29 $ 0.27 $ 0.23 let interest income $ 66,234 $ 67,907 $ 66,876 SAAP Net interest margin 3.90% 4.15% 445% Noninterest income $ 12,050 $ 11,369 $ 11,356 Noninterest expense $ 39,010 $
Slide 23: Major Pre-Tax Acquisition Accounting Adjustments Related to Mergers
Appendix — Major Pre-Tax Acquisition Accounting Adjustments Related to Mergers a4 Qi 2014 2014 Accretion of discount on acquired $ 3190 $ 4,57 $ 4575 $ 3202 $ 4873 $ 4,074 $ 6637 $ 4076 performing loans ‘Accretion of discount on acquired «1,670 «1,863 2,096 «2,645 «2,480 2,806 «1,032 1822 credit imp
Slide 24: Impact of Acquisition Accounting Adjustments
Appendix — Impact of Acquisition Accounting Adjustments LEBER EBE 2014 2014 2013 Acquisition accounting adjustments (0.33)% — (0.42)% — (0.48)% —(0.47)% + (0.58)% —(0.56)% (0.63% += (0.52)% — Acquisition accounting adjustments (0.40% — (0.51)% —(0.58)% — (0.54)% — (0.69}% — (0.67)% — (0.76)% — (0.60
Slide 25: Reconciliation of TCE/TA
Appendix — Reconciliation of TCE/TA 12/31/2014 Total stockholders equity 02,773 Less: ‘Common stock warrant. (378) Good andintanibe assets, net (108,288) Tangible common equity 773,107 Total assets 7,140,330 Less: Goodwil and intangible asses, net (109.288 Tangible assets 7.031 042 ‘Common shares ou
Slide 26: Premier Korean-American Bank in the Nation
Premier Korean-American Bank in the Nation Ln eae _ Hanmi Financial Corporation 49 $4,229,099 $2,677,514 ‘$3,617,553 CA, TK IL, NY, NI, VA 3. Wilshire Bancorp tse) 12/200) 33 $4,155,469 $3,308,297 $3,401,259 CAT NY, NI 4. Pacific City Bank 9 $854,769 «$715,578 $769,078 a 5. Commonwealth Business Ban