Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Q4 2018 Earnings Presentation
13 slides from Hope Bancorp's earnings presentation, Jan 23, 2019
Slide 1: 2018 Fourth Quarter and Full-Year Earnings Conference Call
2018 Fourth Quarter and Full-Year Earnings Conference Call Wednesday, January 23, 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: Q4 2018 Financial Highlights
Q4 2018 Financial Highlights Net income of $44.4 million, or $0.35 per diluted common share, versus $46.4 million, or $0.36 per diluted common share for preceding Q3 Results reflect discontinuation of SBA loans to secondary market, a $1.7 million restructuring Net charge, a non‐cash incremental
Slide 4: Loan Production & Portfolio Trends
Loan Production & Portfolio Trends New Loan Originations Funded 5.22% New loan originations funded of $667 million; new 4.97% ($ millions) 4.79% loan commitments of $687 million 4.56% 4.64% 4.40% 4.42% 4.15% 4.26% Total end‐of‐period loans receivable increased $171 $764.3 $792.3 $784.1 million o
Slide 5: Net Interest Income and Margin
Net Interest Income and Margin Key Net Interest Income Drivers Net Interest Income & NIM Average Loans & Yield ($ millions) ($ billions) $126.4 $123.3 $123.1 $11.9 $122.8 $121.9 $11.8 $120.1 $11.4 $117.2 $116.8 $10.9 $11.1 5.16% 5.21% $10.7 $114.9 $10.4 $10.5 3.83% 3.84% $10.4 3.75% 3.77% 3.75% 3.66
Slide 6: Noninterest Income
Noninterest Income Noninterest Income ($ millions) Total noninterest income decreased $1.8 million or $19.9 14% Q‐o‐Q to $11.6 million $18.2 Due to $1.9 million decrease in SBA net gain‐on‐ $17.6 sale $16.1 $16.3 $16.5 $15.3 $7.5 $10.4 $13.5 Quarter‐over‐Quarter Difference $8.6 $6.6 $7.3 $7.3 $1
Slide 7: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense and Efficiency Ratio Breakdown of Noninterest Expense and FTE ($ millions) ($ millions) $73.0 $68.5 $71.6 $70.2 $66.7 $67.7 $67.5 $33.3 $31.1 $33.6 $64.0 $61.8 $32.6 $33.5 $29.1 $30.5 $29.1 $25.9 1,502 1,512 1,463 1,470 1,491 1,494 FTE FTE FTE F
Slide 8: Deposit Growth Trends
Deposit Growth Trends Deposit Composition Total end‐of‐period deposits increased 1% Q‐o‐Q to a record $12.16 billion ($ billions) $12.05 $12.16 Growth in higher‐rate time deposits resulted in $11.73 $11.51 16bps increased deposit costs $10.96 $10.99 $10.85 $10.64 $10.70 Deposit gathering and c
Slide 9: Asset Quality
Asset Quality Nonperforming Assets Provision Expense & Net Charge Offs ($ millions) ($ millions) $7.3 $137.9 $124.3 $125.7 $125.2 $129.1 $5.6 $5.4 $8.3 $118.2 $113.0 $111.2 $105.4 $17.2 $10.8 $8.7 $21.8 $129.6 $9.0 $7.8 $3.6 0.22% $22.0 $114.4 $120.4 $2.8 $2.8 $19.1 $108.5 $109.2 $105.2 0.24% $2.5 $
Slide 10: A Summary Review of 2018
A Summary Review of 2018 •A record $3.01 billion in new loans • Reductions in nonaccrual loans to support the financial needs of since the first quarter of the year our customers • Criticized loan balances down 15% Year‐over‐Year Stable to Strong Loan Improving Originations Asset Quality Cost Record
Slide 11: 2019 Key Priorities
2019 Key Priorities Profitable Growth – •New TMS leadership actively engaging front line to build new core deposit relationships •Targeting existing commercial customers rich in deposits Better Deposit Cost •Rebuilding online banking platform Management •Redesigned frontline incentive compensation p
Slide 12: Appendix: SBA Retention
Appendix SBA Retention Average Premium Received on SBA Sales Rationale for retaining SBA loans 10.00% Premium rates on SBA loans sold has gone down 9.00% significantly from 8.8% in Q4 2016 to 5.6% in Q4 8.00% 8.8% 2018 8.5% 8.3% 8.3% 8.5% 7.00% 8.1% 7.8% Meanwhile average interest rate on SBA
Slide 13: 2018 Fourth Quarter Earnings Conference Call Q&A
2018 Fourth Quarter Earnings Conference Call Q&A 13