Hope Bancorp, Inc. · NASDAQ:HOPE

Hope Bancorp — Q1 2018 Earnings Presentation

11 slides from Hope Bancorp's earnings presentation, Apr 18, 2018

  1. Slide 1: 2018 First Quarter Earnings Conference Call

    1 2018 First Quarter Earnings Conference Call Wednesday, April 18, 2018

  2. Slide 2: Forward Looking Statements & Additional Disclosures

    2 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 Sectio

  3. Slide 3: Q1 2018 Financial Highlights

    3 Q1 2018 Financial Highlights Strong Profitability Loan Momentum Stable Credit  Record net income of $51.2 million, or $0.38 per diluted common share  Net interest margin declined 18bps Q‐o‐Q to 3.66%; impacted by rising deposit costs, and $3.0 million additional one‐time accretion income in Q4 2

  4. Slide 4: Loan Production & Portfolio Trends

    4 Loan Production & Portfolio Trends  Total end‐of‐period loans increased $189.9 million or 2% Q‐o‐Q and 7% annualized  Record new loan originations funded of $764 million topped seasonally higher Q4 by 15%  Record new loan commitments of $1.12 billion, including a large new warehouse line of cre

  5. Slide 5: Deposit Growth Trends

    5 Deposit Growth Trends  Total end‐of‐period deposits increased $664.0 million or 6% Q‐o‐Q to a record $11.51 billion  Solid growth across all major deposit categories – Demand Deposit: +2% – Money Market & NOW: +4% – Time Deposits: +12%  Deposit gathering a top priority for 2018  Proactive effo

  6. Slide 6: Net Interest Income and Margin

    6 Net Interest Income and Margin Key Net Interest Income Drivers $9.3 $10.4 $10.4 $10.5 $10.7 $10.9 $11.1 4.80% 4.80% 4.82% 4.89% 5.07% 5.12% 5.04% 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Average Loans & Yield Avg Loans Yield Net Interest Income & NIM  1Q17 NII decline of $6.3 million due largely to: –

  7. Slide 7: Noninterest Income

    7 Noninterest Income  Total noninterest income increased $3.4 million or 21% Q‐o‐Q to $19.9 million Quarter‐over‐Quarter Difference  Other income and fees increased $3.1 million or 43% to $10.4 million – Includes $3.5 million income recorded to reflect change in the value of certain equity investm

  8. Slide 8: Noninterest Expense and Efficiency Ratio

    8 $30.5 $34.2 $34.2 $34.9 $36.0 $39.7 $39.4 $37.4 $32.6 $33.5 $29.1 $25.9 $33.3 $29.0 1,400 FTE 1,372 FTE 1,352 FTE 1,378 FTE 1,463 FTE 1,470 FTE 1,502 FTE 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Breakdown of Noninterest Expense and FTE Compensation Other FTE Noninterest Expense and Efficiency $67.8 $66.

  9. Slide 9: Asset Quality

    9 Asset Quality  General stability in asset quality trends  Increase in nonperforming loans reflects the migration of previously identified problem loans to nonaccrual status  Total criticized loans declined by $27.7 million  Total loss experience continues to be very low, with annualized net ch

  10. Slide 10: Near-Term Outlook & Strategies

    10 Near-Term Outlook & Strategies  Loan growth guidance of 6‐8% for 2018 supported by: – Strong pipeline entering the second quarter – Expansion of residential mortgage originations through branch network across the U.S. contributing to double‐digit range growth for 2018 – Expansion of SBA loan pro

  11. Slide 11: 2018 First Quarter Earnings Conference Call Q&A

    11 2018 First Quarter Earnings Conference Call Q&A

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