Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Q2 2022 Earnings Presentation
15 slides from Hope Bancorp's earnings presentation, Jul 20, 2022
Slide 1: Second Quarter 2022 Earnings Conference Call
2022 Second Quarter Earnings Conference Call Wednesday, July 20, 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: Q2 2022 Financial Highlights
Q2 2022 Financial Highlights Strong Quarter Highlighted by Record Loan Production & Expanding NIM Net Income Earnings & Profitability $52.1M • Net interest margin expanded 15bps Q-o-Q largely reflecting an 18bps increase in weighted average loan yields and improved mix of interest earning assets • P
Slide 4: Loan Production & Portfolio Trends
Loan Production & Portfolio Trends New Loan Originations Funded Loans Receivable (Excluding SBA PPP) ($ Millions) ($ Billions) $1,243 $1,286 14 .75 Q-o-Q change Q-o-Q change $14.51 $81 $184 $1,009 $1,026 $894 $75 $104 +25% 14 .25 +23% $539 -17% $53 $557 $13.95 +13% $344 $344 +4% $301 13 .75 $13.72 $
Slide 5: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income & NIM Net Interest Margin ($ Millions) Q-o-Q increase $141.5 +4bps -9bps $133.3 $133.2 +5bps $130.3 +6% +18bps Cash -3bps -0% 3.36% $126.6 reduction & +2% 3.36% Inv securities yield Interest decrease + bearing Borrowings +3% increase yield increase
Slide 6: 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 6/30/2022) (As of 6/30/2022) 12 0% 4.06% 4.61% 5.10% 3.60% 4.26% Hybrid 1 10 0% 5% 1% 80 % 41% 30% Variable @3.96% 2 44% 86% 60 % 100% 99% @4.44% 2
Slide 7: Noninterest Income
Noninterest Income Noninterest Income • Noninterest income decreased 3% Q-o-Q to $12.7 million vs. ($ Millions) $13.2 million in 1Q22 $13.1 $13.2 $12.7 – Primary customer-related service fees, gain on sale of SBA loans and other income and fees all increased Q-o-Q $11.1 $2.3 $2.7 $10.6 $4.3 $0.8 – T
Slide 8: Noninterest Expense and Efficiency
Noninterest Expense and Efficiency Noninterest Expense & FTE Efficiency Ratio & ($ Millions) Noninterest Expense to Average Assets $80.4 $75.5 $74.2 $75.4 $73.1 $6.3 $6.4 $7.0 $6.3 $2.8 $8.4 1 $1.5 $1.5 53.58% $0.3 $1.7 $20.1 53.12% $20.6 $19.9 $22.1 $21.0 52.09% 51.50% $51.1 50.70% $47.0 $47.7 $44.
Slide 9: Deposit Trends
Deposit Trends Deposit Composition Deposit Cost Trend Average Deposits and ($ Billions) Cost of Interest-Bearing Deposits ($ Billions) Q-o-Q growth annualized $14.73 $15.06 $15.04 $15.03 $15.07 $14.95 $14.52 0.41% $14.46 $14.99 $14.80 $3.0 +2% $2.9 0% $2.8 -3% $2.2 +4% $2.7 1.2% 0 0.32% $5.8 $6.0 $5
Slide 10: Asset Quality
Asset Quality Nonperforming Assets Total Criticized Loans Provision (Credit) for Credit Losses ($ Millions) ($ Millions) & Net (Recoveries) Charge Offs ($ Millions) $183.7 5.03% $16.6 4.10% $167.1 $675.5 3.58% 1.28% $113.7 $111.8 $110.6 $381.0 $550.5 2.80% $2.6 $102.4 $499.6 2.34% 0.35% $15.2 $2.0 $
Slide 11: Strong Capital Position & Returns
Strong Capital Position & Returns Capital Positions Dividends & Buybacks ($ Millions) $13.04 $12.80 12.49% 12.14% 11.68% 11.33% $47.2 11.02% 10.70% 10.37% 10.32% $14.7 $2.8 $17.3 $17.3 $16.8 $16.8 $16.9 Total Risk-Based Tier 1 Leverage Tier 1 Common Tier 1 Tangible 2Q21 3Q21 4Q21 1Q22 2Q22 Capital R
Slide 12: 2022 Full-Year Outlook
2022 Full-Year Outlook Previous outlook as of 1Q22 Current outlook as of 2Q22 Loan Growth: Recent business development Loan Growth: A greater level of confidence for performance and robust loan pipeline support achieving the higher end of 2022 full-year guidance cautious optimism for achieving h
Slide 13: Second Quarter Earnings Conference Call Q&A
2022 Second 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