Hope Bancorp, Inc. · NASDAQ:HOPE
Hope Bancorp — Q1 2025 Earnings Presentation
19 slides from Hope Bancorp's earnings presentation, Apr 22, 2025
Slide 1: First Quarter 2025 Earnings Conference Call
2025 First Quarter Earnings Conference Call April 22, 2025
Slide 2: Forward Looking Statements & Additional Disclosures
Forward Looking Statements & Additional Disclosures Some statements in this presentation may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statemen
Slide 3: Q1 2025 Financial Overview
Q1 2025 Financial Overview Total Capital & TCE Ratio Strong Capital & Liquidity at 3/31/25 • Total capital ratio was 15.06% at 3/31/25, up 28bps QoQ • Tangible common equity (“TCE”) ratio(1) was 10.20% at 3/31/25, up 15bps QoQ 15.06% / 10.20% • Strategically compelling acquisition of Hawaii-based Te
Slide 4: Strong Capital Ratios
Strong Capital Ratios • Robust capital ratios: All capital ratios increased QoQ and YoY and were meaningfully above Common Equity Tier 1 Capital Ratio Tangible Common Equity (“TCE”) Ratio(1) requirements for “well-capitalized” financial institutions • Pro forma capital very strong: Adjustments for t
Slide 5: Diverse & Granular Deposit Base
Diverse & Granular Deposit Base Deposit Composition by Product Type Deposit Composition by Customer Type Noninterest Bearing 2% 3% 3% 3% 2% 10% 9% 7% 7% 7% Demand Deposits 23% Time Deposits 38% 39% 39% 40% 40% 40% $14.5B Total Deposits 50% 49% 51% 50% 51% (at 3/31/25) Money Market, Interest Bearing
Slide 6: Well-Balanced Loan Portfolio
Well-Balanced Loan Portfolio $1.2B $1.2B • Loan portfolio well-diversified across major Avg Size: $0.6MM Avg Size: $2.4MM Residential loan types of nonowner-occupied CRE, C&I, Multifamily Mortgage & owner-occupied CRE, multifamily residential, Residential Other and residential mortgage 9% 9% $3.8B •
Slide 7: Diversified CRE Portfolio with Low LTVs
Diversified CRE Portfolio with Low LTVs Total CRE: Distribution by LTV (excl. SBA) $8.4B > 55% - As a % of CRE Portfolio Avg Loan Size: > 60% - (at 3/31/25) 60%: 65%: > 65% - Total Loans: Weighted Avg LTV(1): 9% 6% 70% Multi-tenant Retail $2.4MM > 50% - 55%: 5% 12% $1,575MM 41.7% 13% > 70%: 9% Indus
Slide 8: Granular CRE Portfolio, Diversified by Submarket
Granular CRE Portfolio, Diversified by Submarket CRE Portfolio by Size Segment CRE Portfolio by Geographic Submarket ($ Millions) # of Average Weighted Other States Loan Size Balance (at 3/31/25) ($ Millions) Loans Loan Size Average LTV(1) LA Fashion District ($ Millions) Illinois Gateway Cities > $
Slide 9: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin Net Interest Income & Net Interest Margin QoQ Change in Net Interest Margin ($ Millions) $115 $106 +17bps -6bps $105 $102 -3bps -4bps 2.54% $101 2.50% Decrease in Loan Yield Avg Loan All Other Interest Decline Balance Net Bearing Decline Changes Deposit Cost
Slide 10: Average Loans & Deposits, Yields & Rates
Average Loans & Deposits, Yields & Rates Average Loans Average Loan Yield Relative to Fed Funds Rate ($ Billions) 6.25% 6.20% 6.16% 5.95% 5.88% $13.7 $13.6 $13.6 16.00 14.00 $13.6 $13.5 12.00 10.00 5.50% 5.50% 5.43% 4.82% 8.00 6.00 4.50% 4.00 2.00 0.00 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q
Slide 11: Noninterest Income
Noninterest Income Noninterest Income ($ Millions) $15.9 $15.7 • 1Q25 noninterest income of $16MM. 1.0 Excluding the one-time $1MM branch sale gain in 4Q24, 1Q25 noninterest income was $11.8 up 5% QoQ from $15MM $11.1 9.7 9.0 • Sold $50MM of the guaranteed portion of $8.3 6.4 SBA 7(a) loans during 1
Slide 12: Noninterest Expense & Efficiency
Noninterest Expense & Efficiency Noninterest Expense(1)(2) Efficiency Ratio (excluding notable items) ($ Millions) GAAP Noninterest Expense $84.8 $83.9 $81.0 $81.3 $77.6 72.0% 68.8% 69.3% 69.7% $82.4 $79.1 $79.8 $81.3 65.7% $77.0 22.7 19.9 68.4% 69.8% 22.6 23.3 22.7 66.8% 67.7% 65.8% 12.1 12.9 12.4
Slide 13: Stable Asset Quality Metrics
Stable Asset Quality Metrics Allowance for Credit Losses & Coverage Ratio Nonperforming Assets Ratio ($ Millions) • Allowance for credit losses (“ACL”) $159 coverage ratio: 1.11% of loans as of $156 $153 $151 3/31/25, unchanged QoQ $147 • Nonperforming assets (“NPA”) of 1.16% 1.15% 1.13% $84MM, or 0
Slide 14: Territorial Merger Highlights
Territorial Merger Highlights Territorial at Merger Close (preliminary estimates) Merger with Honolulu-based Territorial Bancorp Inc. (“Territorial”), the holding company for ▪ $1.7B in deposits at a weighted Territorial Savings, completed on April 2, 2025 average cost of 1.96% ▪ $1.06B of loans, af
Slide 15: Update to Management's Financial Outlook for 2025 vs. 2024
Update to Management’s Financial Outlook for 2025 vs. 2024 2024 Outlook for 2025 (1) Anticipated Drivers & Comments on Update ($ Millions) High single-digit % growth ▪ Moderate organic growth driven by recent and anticipated hiring; loan growth End-of-Period Loans weighted toward second half of the
Slide 16: Appendix
Appendix 16
Slide 17: Summary Balance Sheet
Summary Balance Sheet QoQ YoY ($ in millions, except per share data) 3/31/25 12/31/24 3/31/24 % change % change Cash and due from banks $ 733.5 $ 458.2 60 % $ 1,185.3 (38)% Investment securities 2,088.6 2,075.6 1% 2,278.0 (8)% Federal Home Loan Bank (“FHLB”) stock and other investments 103.5 57.2 81
Slide 18: Summary Income Statement
Summary Income Statement QoQ YoY ($ in thousands, except per share and share data) 1Q25 4Q24 1Q24 % change % change Net interest income before provision for credit losses $ 100,817 $ 102,135 (1)% $ 115,047 (12)% Provision for credit losses 4,800 10,000 (52)% 2,600 85 % Net interest income after prov
Slide 19: Appendix: Non-GAAP Financial Measures Reconciliation (cont'd)
Appendix: Non-GAAP Financial Measures Reconciliation (cont’d) Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financ