Slide 1: 2024 Fourth Quarter Earnings Conference Call
2024 Fourth Quarter Earnings Conference Call January 27, 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: Q4 2024 Financial Overview
Q4 2024 Financial Overview Total Capital & TCE Ratio Strong Capital & Liquidity at 12/31/24 • Total capital ratio was 14.78% at 12/31/24, up 86bps YoY 14.78% / 10.05% • Tangible common equity (“TCE”) ratio(1) was 10.05% at 12/31/24, up 119bps YoY • Strategically compelling acquisition of Hawai`i-bas
Slide 4: Strong Capital Ratios
Strong Capital Ratios • Robust capital ratios: All regulatory capital ratios meaningfully above requirements for Common Equity Tier 1 Capital Ratio Tangible Common Equity (“TCE”) Ratio(1) “well-capitalized” financial institutions • Proforma capital very strong: Adjustments for the allowance for cred
Slide 5: Diverse & Granular Deposit Base
Diverse & Granular Deposit Base Deposit Composition by Product Type Deposit Composition by Customer Type Noninterest Bearing 3% 2% 3% 3% 3% 10% 10% 9% 7% 7% Demand Deposits 24% Time Deposits 37% 38% 39% 39% 40% 40% $14.3B Total Deposits 50% 50% 49% 51% 50% (at 12/31/24) Money Market, Interest Bearin
Slide 6: Well-Balanced Loan Portfolio
Well-Balanced Loan Portfolio $1.1B $1.2B • Loan portfolio well-diversified across Avg Size: $0.6MM Avg Size: $2.3MM major loan types of nonowner-occupied Residential CRE, C&I, owner-occupied CRE, multifamily Multifamily Mortgage & residential (“MFR”), and residential Residential Other 9% mortgage 8%
Slide 7: Diversified CRE Portfolio with Low LTVs
Diversified CRE Portfolio with Low LTVs Total CRE: Distribution by LTV (excl. SBA) $8.5B > 65% - CRE Portfolio > 55% - > 60% - As a % of Avg Loan Size: 70% (at 12/31/24) 60%: 65%: Total Loans: Weighted Avg LTV(1): 10% 7% 5% Multi-tenant Retail $2.4MM 12% > 50% - 55%: $1,620MM 42.0% > 70%: Industrial
Slide 8: Granular CRE Portfolio, Diversified by Submarket
Granular CRE Portfolio, Diversified by Submarket CRE Portfolio by Size Segment CRE Portfolio by Geographic Submarket ($ Millions) # of Average Weighted Other States Loan Size Balance (at 12/31/24) ($ 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) $126 $115 +14bps -13bps $106 $105 2.55% -2bps -4bps $102 2.50% Decrease in Loan Yield All Other Impact of Interest Decline Net Interest Bearing Changes Income Deposit Co
Slide 10: Average Loans & Deposits, Yields & Rates
Average Loans & Deposits, Yields & Rates Average Loans Average Loan Yield Relative to Fed Funds Rate ($ Billions) 6.24% 6.25% 6.20% 6.16% $14.1 5.95% $13.7 $13.6 $13.6 16.00 14.00 $13.6 12.00 10.00 5.50% 5.50% 5.50% 5.43% 4.82% 8.00 6.00 4.00 2.00 0.00 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q
Slide 11: Noninterest Income
Noninterest Income Noninterest Income ($ Millions) • 4Q24 noninterest income of $16MM, up 34% from $12MM in 3Q24 $15.9 • Sold $48MM of the guaranteed portion of 1.0 SBA 7(a) loans during 4Q24 and recorded a net gain on sale of $3.1MM vs. $41MM $11.8 $11.1 sold during 3Q24 for a net gain on sale of $
Slide 12: Noninterest Expense & Efficiency
Noninterest Expense & Efficiency Noninterest Expense(1)(2) Efficiency Ratio (excluding notable items) ($ Millions) GAAP Noninterest Expense $99.2 $84.8 $81.0 $81.3 $77.6 73.4% $84.1 68.8% 69.3% 69.7% $82.4 $79.1 $79.8 65.7% $77.0 24.2 22.7 23.3 67.7% 68.4% 22.6 22.7 66.8% 65.8% 12.5 12.1 62.2% 12.4
Slide 13: Asset Quality Metrics
Asset Quality Metrics Allowance for Credit Losses & Coverage Ratio Nonperforming Assets Ratio ($ Millions) • Nonperforming assets (“NPA”) of $159 $159 $91MM at 12/31/24, down 13% QoQ $156 $153 $151 • Criticized loans of $450MM at 12/31/24, down 11% QoQ, reflected 1.15% 1.16% 1.15% 1.13% payoffs, wor
Slide 14: Management's Financial Outlook for 2025 vs. 2024
Management’s Financial Outlook for 2025 vs. 2024 2024 Outlook for 2025 (1) Anticipated Drivers ($ Millions) ▪ Moderate organic growth from HOPE, building on momentum from 2H 2024 End-of-Period Loans ▪ Addition of Territorial loan portfolio, after purchase discount marks. Assuming $ 13,633 High singl
Slide 15: Medium-Term Targets
Medium-Term Targets(1) High single-digit >10% ~50% 1.2%+ % growth Targeting medium-term annual revenue growth to outpace loan Target efficiency ratio, to be Targeting balanced growth across achieved via revenue growth, Targeting attractive levels of all business lines in normalized growth, augmented
Slide 16: Appendix
Appendix 16
Slide 17: Summary Balance Sheet
Summary Balance Sheet QoQ YoY ($ in millions, except per share data) 12/31/24 9/30/24 12/31/23 % change % change Cash and due from banks $ 458.2 $ 680.9 (32.7)% $ 1,929.0 (76.2)% Investment securities 2,075.6 2,177.3 (4.7)% 2,408.9 (13.8)% Federal Home Loan Bank (“FHLB”) stock and other investments
Slide 18: Summary Income Statement
Summary Income Statement QoQ YoY ($ in thousands, except per share and share data) 4Q24 3Q24 4Q23 % change % change Net interest income before provision for credit losses $ 102,135 $ 104,809 (3)% $ 125,916 (19)% Provision for credit losses 10,000 3,280 205 % 2,400 317 % Net interest income after pro
Slide 19: Appendix: Non-GAAP Financial Measures Reconciliation
Appendix: Non-GAAP Financial Measures Reconciliation 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 financial measu
Slide 20: 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