Slide 1: First Quarter 2022 Earnings Conference Call
2022 First Quarter Earnings Conference Call Tuesday, April 19, 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 constitute forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section
Slide 3: Q1 2022 Financial Highlights
Q1 2022 Financial Highlights Net Income Earnings & Profitability • Net interest margin expanded 8bps Q-o-Q reflecting decreased cash balance and more favorable mix of $60.7M higher-yielding earning assets • Net income increased 18% Q-o-Q • ROA increased to 1.37% and ROTCE1 increased to 15.01% from 1
Slide 4: Loan Production & Portfolio Trends
Loan Production & Portfolio Trends New Loan Originations Funded Loans Receivable (Excluding PPP) ($ Millions) ($ Billions) $1,242.9 Q-o-Q increase 14 .25 $81 Q-o-Q increase $1,009.2 $1,026.0 $13.95 $847.1 $894.1 $75 +23% $104 $53 $539 -17% $13.72 $71 +13% $344 13 .75 $344 $160 +6% $301 +2% $20 $305
Slide 5: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income & NIM Net Interest Margin ($ Millions) Q-o-Q increase +3bps +1bps -5bps $133.3 $133.2 $130.3 +9bps Interest 3.21% -0% bearing $126.6 +2% Inv securities deposit cost decrease + Declines in $122.6 decline +3% yield increase accretion and loan yield +3
Slide 6: Interest Rate Risk
Interest Rate Risk New Loan Fixed/Variable & Average Rate Fixed / Variable Breakdown (As of 03/31/2022) (As of 3/31/2022) 3.51% 3.58% 4.49% 3.09% 3.54% 14% Hybrid 1 43% 28% Variable @3.99%2 43% 92% 96% @3.47%2 100% 86% Fixed 57% 29% 4% @3.66%2,3 8% CRE Commercial SBA Mortgage Total Consumer Originat
Slide 7: Noninterest Income
Noninterest Income Noninterest Income • Noninterest income increased 1% Q-o-Q to $13.2 million vs. ($ Millions) $13.1 million in 4Q21 $13.1 $13.2 • Sold $58.1 million of the guaranteed portion of SBA 7(a) loans to the secondary market in 1Q22 vs. $41.0 million in 4Q21 $11.1 $2.3 $10.6 $4.3 $8.8 $0.8
Slide 8: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense & FTE Efficiency Ratio & ($ Millions) Noninterest Expense to Average Assets $75.5 $74.2 $75.4 $70.4 $73.1 $6.4 $7.0 $6.3 $7.0 $8.4 1 $1.5 $1.5 53.61% 53.58% $0.3 $1.7 $2.5 53.12% $20.6 $19.9 $22.1 $21.0 $19.7 51.50% $47.0 $47.7 50.70% $44.6 $41.
Slide 9: Deposit Trends
Deposit Trends Deposit Composition Deposit Cost Trend Average Deposits and ($ Billions) Cost of Interest-Bearing Deposits ($ Billions) Q-o-Q growth annualized $14.73 $15.06 $15.04 $15.07 $14.30 $14.52 $14.46 $14.99 $14.95 $14.38 1.2% 0 +12% $3.0 +9% $2.9 -0% $2.8 $2.2 $5.8 $6.0 $5.7 $3.6 -3% $5.1 $5
Slide 10: Asset Quality
Asset Quality Nonperforming Assets Total Criticized Loans Provision (Credit) for Credit Losses ($ Millions) ($ Millions) & Net Charge Off (Recoveries) ($ Millions) $183.7 4.82% 5.03% $170.5 $16.6 4.10% $18.5 1.28% $167.1 $660.0 $675.5 3.58% $152.0 $113.7 $111.8 $102.4 $379.0 $381.0 $550.5 2.80% $2.6
Slide 11: Strong Capital Position & Returns
Strong Capital Position & Returns Capital Positions Dividends & Buybacks ($ Millions) $13.51 $13.04 12.42% 12.49% 11.70% 11.69% $47.2 11.03% 11.03% 10.37% 10.11% $2.8 $17.3 $17.3 $17.3 $16.8 $16.8 Total Risk-Based Tier 1 Leverage Tier 1 Common Tier 1 Tangible 1Q21 2Q21 3Q21 4Q21 1Q22 Capital Ratio R
Slide 12: Near-Term Outlook
Near-Term Outlook Loan Growth: Recent business development performance and robust loan pipeline support cautious optimism for achieving high single-digit to low double-digit loan growth for 2022, excluding PPP Noninterest Expenses: Noninterest expense to average assets expected to be approximate
Slide 13: First Quarter Q&A
2022 First Quarter Earnings Conference Call Q&A
Slide 14: Appendix
s © Hope Bancorp Appendix
Slide 15: 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