Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Q4 2019 Earnings Presentation
12 slides from Hope Bancorp's earnings presentation, Jan 23, 2020
Slide 1: 2019 Fourth Quarter Earnings Conference Call
2019 Fourth Quarter Earnings Conference Call Thursday, January 23, 2020 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: Q4 2019 Financial Highlights
Q4 2019 Financial Highlights Net income of $43.0 million, or $0.34 per diluted common share Earnings & Net interest margin compression of 9bps Q‐o‐Q in line with management guidance of 5‐7bps initial Net Profitability impact from each 25bps reduction in Fed Funds Rate Income Noninterest expens
Slide 4: Loan Production & Portfolio Trends
Loan Production & Portfolio Trends New Loan Originations Funded Record new loan originations funded of $848 million 5.52% 5.46% resulting in 1.4% net loan growth, or 5.7% annualized 5.22% ($ millions) 4.97% 4.64% 4.79% 4.72% 4.42% 4.37% Aggregate payoffs and paydowns remained at higher‐ than‐usu
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) $12.1 $12.0 $126.4 $11.9 $12.0 $11.9 $11.8 $122.8 $123.1 $121.9 $11.4 $120.1 $119.6 $117.2 $11.1 5.31% 5.32% 5.27% $116.3 $10.9 5.21% 5.16% 5.04% $113.5 3.84% 3.61
Slide 6: Noninterest Income
Noninterest Income Noninterest Income Noninterest income stable at $13.0 million, unchanged ($ millions) $19.9 from preceding quarter Quarter‐over‐Quarter Gain‐on Sale Variance $16.5 $15.3 $1.1 million increase Q‐o‐Q in gain on sale of other loans $10.4 $13.4 $13.0 $13.0 Reflects $35.5 million
Slide 7: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense and Efficiency Ratio Breakdown of Noninterest Expense and FTE ($ millions) ($ millions) $73.0 $71.6 $70.8 $71.4 $68.5 $67.5 $70.2 $70.0 $70.4 $33.3 $31.1 $32.1 $29.1 $30.5 $33.6 $30.4 $28.4 $30.6 54.06% 55.11% 54.15% 55.68% 51.12% 51.87% 52.57%
Slide 8: Deposit Trends
Deposit Trends Deposit Composition Total end‐of‐period deposits increased 2% Q‐o‐Q Favorable shift in deposit mix continued with increases in lower‐ cost deposits and decreases in time deposits $12.16 Billion $12.23 Billion $12.53 Billion – 2% increase in noninterest bearing deposits Q‐o‐Q – 6%
Slide 9: Asset Quality
Asset Quality Nonperforming Assets Provision Expense & Net Charge Offs ($ millions) ($ millions) $7.3 $137.9 $138.5 $125.2 $8.3 $129.1 $6.3 $122.1 $10.8 $8.7 $118.2 $113.0 $111.7 $3.6 $129.6 $9.0 $7.8 $132.2 $5.6 $96.7 $24.1 0.22% $114.4 $120.4 $2.8 $3.0 $109.2 $106.0 $2.5 $2.3 $105.2 $19.4 $98.0 $2
Slide 10: Near-Term Outlook & Strategies
Near-Term Outlook & Strategies 2020 Key Priorities Profitable Growth – Better deposit cost management Profitable Growth – Better loan yields Profitable Growth – Better efficiencies Capital Management Continuation of positive trends from 2019 Favorable shift in mix of deposits to lower‐
Slide 11: 2019 Fourth Quarter Earnings Conference Call Q&A
2019 Fourth Quarter Earnings Conference Call Q&A 11
Slide 12: Appendix – Pre-Tax Acquisition Accounting Adjustments and Merger-Related Expenses
Appendix – Pre-Tax Acquisition Accounting Adjustments and Merger-Related Expenses Q4 Q1 Q2 Q3 Q4 ($ thousands) 2018 2019 2019 2019 2019 Accretion of discount on acquired performing loans $2,360 $2,166 $1,799 $2,046 $1,945 Accretion of discount on acquired credit impaired loans 4,867 5,834 6,848 5,23