Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Q3 2022 Earnings Presentation
16 slides from Hope Bancorp's earnings presentation, Oct 25, 2022
Slide 1: Third Quarter 2022 Earnings Conference Call
2022 Third Quarter Earnings Conference Call Tuesday, October 25, 2022
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 cons titute forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Sectio
Slide 3: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights Record Loan Production, Improved Asset Quality & Enhanced Profitability Net Income Earnings & Profitability $53.7M • Net interest income increased 8% Q-o-Q and 18% Y-o-Y, reflecting increased average loans receivable and loan yields compounded with higher net interest ma
Slide 4: Loan Production & Portfolio Trends
Loan Production & Portfolio Trends New Loan Originations Funded Loans Receivable Q-o-Q change ($ Millions) ($ Billions) $1,286 $1,349 Q-o-Q change $1,243 $68 15 .75 $15.49 $81 $184 $1,009 $1,026 +5% 15 .25 $75 $104 +23% $539 -17% +25% $747 $344 $344 $557 14 .75 $14.55 +6% 14 .25 $13.95 $14.07 $590 $
Slide 5: Transformation to Lower-Risk Loan Portfolio
Transformation to Lower-Risk Loan Portfolio $5.12 Billion C&I Portfolio Manufacturing 14% Wholesale Trade 13% Information 12% Warehouse Line 7% Gas Station 5% Restaurant 5% $2.64 Billion C&I Portfolio Health Care/Social Asst. 4% Wholesale Trade 25% All Other C&I 40% Manufacturing 15% Note: All Other
Slide 6: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income & NIM Net Interest Margin ($ Millions) Q-o-Q increase $153.2 +8bps +4bps -45bps +50bps $141.5 Inv securities $133.2 +8% Loan balance $133.3 increase decrease + -4bps yield increase $130.3 Interest Borrowings +6% 3.49% bearing 3.49% 3.36% Loan yield
Slide 7: Loan Portfolio Interest Rate Breakdown
Loan Portfolio Interest Rate Breakdown Fixed/Variable & Average Rate of New Loan Originations Fixed / Variable Breakdown of Total Loan Portfolio (As of 9/30/2022) (As of 9/30/2022) 12 0% 4.94% 5.55% 7.59% 4.99% 5.37% Hybrid 1 10 0% 5% 1% 80 % 29% Variable 57% 46% 60 % @3.98% 2 96% 100% 99% @6.00% 2
Slide 8: Noninterest Income
Noninterest Income Noninterest Income • Noninterest income increased 5% Q-o-Q to $13.4 million vs. ($ Millions) $12.7 million in 2Q22 – Primary customer-related service fees increased 10% Q-o-Q $13.1 $13.2 $12.7 $13.4 $2.3 – Other income and fees increased 94% Q-o-Q, largely reflecting an $10.6 $2.7
Slide 9: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense & FTE Efficiency Ratio & ($ Millions) Noninterest Expense to Average Assets $83.9 $80.4 $75.5 $74.2 $75.4 $10.8 $6.3 53.58% $6.4 $7.0 $6.3 $2.9 $1.3 $1.5 $1.7 $1.5 $20.1 $18.7 52.09% $20.6 $21.0 $19.9 51.50% $53.2 50.70% 50.39% $51.1 $47.0 $47.7
Slide 10: Deposit Trends
Deposit Trends Deposit Composition Deposit Cost Trend Average Deposits and ($ Billions) Cost of Interest-Bearing Deposits ($ Billions) Q-o-Q growth annualized 1.02% $15.07 $14.95 $15.45 $15.50 $14.99 $14.80 2.0% 0 $15.06 $15.04 $15.03 $14.52 $5.7 0.79% $5.8 $6.0 $5.7 $5.7 $2.9 0% $2.8 -3% $2.2 +4% $
Slide 11: Asset Quality
Asset Quality Nonperforming Assets Total Criticized Loans Provision (Credit) for Credit Losses ($ Millions) ($ Millions) & Net Charge Offs (Recoveries) ($ Millions) 4.10% $113.7 $111.8 $110.6 3.58% $2.6 $102.4 $2.0 $97.0 2.80% 1.28% $15.2 $2.0 2.34% $109.2 $108.6 $550.5 $100.4 $1.5 $499.6 1.83% $98.
Slide 12: Strong Capital Position & Returns
Strong Capital Position & Returns Capital Positions Dividends & Buybacks ($ Millions) $12.80 $12.60 12.13% 11.72% 11.33% $47.2 10.69% 10.91% 10.32% 10.25% 10.32% $14.7 $2.8 $17.3 $16.8 $16.8 $16.9 $16.7 Total Risk-Based Tier 1 Leverage Tier 1 Common Tier 1 Tangible 3Q21 4Q21 1Q22 2Q22 3Q22 Capital R
Slide 13: 2022 Full-Year Outlook
2022 Full-Year Outlook Previous outlook as of 2Q22 Current outlook as of 3Q22 Loan Growth: A greater level of confidence for Loan Growth: Continued loan growth in 4Q 2022, achieving the higher end of 2022 full-year guidance achieving the higher end of 2022 full-year guidance of high single-digit
Slide 14: Third Quarter Q&A
2022 Third Quarter Earnings Conference Call Q&A
Slide 15: Appendix
s © Hope Bancorp 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