Hope Bancorp : First Quarter 2025 Earnings Conference Presentation

Published: 2025-04-22 08:07:10 ET HOPE

2025

First Quarter

Earnings Conference Call

April 22, 2025

Q1 2025 Financial Overview

Total Capital & TCE Ratio

at 3/31/25

15.06% / 10.20%

Total Deposits at 3/31/25

$14.5B

Loans Receivable at 3/31/25

$13.3B

NPA/Total Assets at 3/31/25

0.49%

1Q25 Net Income & EPS

$21.1MM / $0.17

Excluding notable items

$22.9MM / $0.19

Strong Capital & Liquidity

Deposits

Loans

Asset Quality

Earnings

reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix of this presentation.

Strong Capital Ratios

Common Equity Tier 1 Capital Ratio

Well Capitalized

Reg. Minimum

6.50%

Total Capital Ratio

Well Capitalized

Reg. Minimum

10.00%

Tangible Common Equity ("TCE") Ratio(1)

Leverage Ratio

Well Capitalized

Reg. Minimum

5.00%

Diverse & Granular Deposit Base

Deposit Composition by Product Type

Noninterest Bearing

Demand Deposits

23%

Time Deposits

40%

$14.5B

Total Deposits

(at 3/31/25)

Money Market,

Interest Bearing

Demand & Savings

Deposits

37%

Deposit Composition by Customer Type

10%

38%

39%

40%

50%

49%

51%

50%

51%

1Q24

2Q24

3Q24

4Q24

1Q25

Commercial

Consumer

Brokered

Public & Other

Well-Balanced Loan Portfolio

$1.2B

Avg Size: $0.6MM

$3.8B

Avg Size: $1.4MM

C&I

28%

$2.7B

Avg Size: $2.2MM

Residential Multifamily Mortgage & Residential

Other

9% 9%

$13.3B

Loans Receivable

(at 3/31/25)

Owner-Occupied CRE

20%

$1.2B

Avg Size: $2.4MM

Nonowner-

Occupied CRE

34%

$4.5B

Avg Size: $1.8MM

Diversified CRE Portfolio with Low LTVs

Total CRE: Distribution by LTV (excl. SBA)

As a % of

Total Loans:

12%

$8.4B

CRE Portfolio

(at 3/31/25)

Multi-tenant Retail

$1,575MM

Industrial & Warehouse

$1,263MM

Multifamily

$1,203MM

Gas Station & Car Wash

$1,084MM

Hotel/Motel

$758MM

Mixed Use

$700MM

Single-tenant Retail

$652MM

Office

$347MM

All Other

$795MM

Avg Loan Size:

Weighted Avg LTV(1):

$2.4MM

41.7%

$2.5MM

40.8%

$2.4MM

60.0%

$1.9MM 47.6%

$2.1MM

40.1%

$1.8MM

47.4%

$1.4MM

45.7%

$2.0MM

54.3%

$1.6MM

42.1%

> 55% -

> 60% -

60%:

65%:

> 65% -

70%

> 50% - 55%:

13%

$8.4B

> 70%:

CRE Portfolio

(at 3/31/25)

46%

Weighted Avg

LTV(1)

debt service coverage or rent/sq foot

Granular CRE Portfolio, Diversified by Submarket

CRE Portfolio by Size Segment

Loan Size

Balance

# of

Average

Weighted

Loan Size

(at 3/31/25)

($ Millions)

Loans

Average LTV(1)

($ Millions)

CRE Portfolio by Geographic Submarket

($ Millions)

Other States

LA Fashion District

> $30MM

$ 325

$ 40.6

61.4%

$20MM - $30MM

$ 578

$ 24.1

49.5%

$10MM - $20MM

$ 1,218

$ 13.7

51.0%

$5MM - $10MM

$ 1,675

246

$ 6.8

48.1%

$2MM - $5MM

$ 2,313

749

$ 3.1

45.5%

< $2MM

$ 2,268

3,021

$ 0.8

39.8%

Total CRE Portfolio

$ 8,377

4,137

$ 2.0

46.2%

Illinois

Washington

Texas

New Jersey

Gateway Cities

San Gabriel Valley

South Bay

LA Koreatown

$8.4B

•

Loan-to-value ratios are consistently low across segments by size

and by property type

•

Vast majority of CRE loans have full recourse and personal

guarantees

(1)

Weighted average LTV: Current loan balance divided by updated collateral value. Collateral

value updates most recent available appraisal by using CoStar market and property-specific

data, including submarket appreciation or depreciation, and changes to vacancy, debt service

coverage or rent/sq foot

Other New

York$309

Kings County

Queens County

Manhattan

Other NorCal

Greater SF Bay Area

San Francisco, $46

CRE Portfolio

(at 3/31/25)

$218

Other SoCal

Other LA County

(No exposure to

downtown LA commercial

business district)

Orange County

San Bernardino County

Riverside County

SoCal

NorCal

NY/NJ

Texas

Washington

Illinois

Other States

Net Interest Income & Net Interest Margin

($ Millions)

$115

$106

$105

$102

$101

2.62%

2.54%

2.55%

2.50%

1Q24

2Q24

3Q24

4Q24

1Q25

Net Interest Income

Net Interest Margin (annualized)

QoQ Change in Net Interest Margin

+17bps

-6bps

-3bps

-4bps

2.54%

2.50%

Decrease in

Loan Yield

Avg Loan

All Other

Interest

Decline

Balance

Net

Bearing

Decline

Changes

Deposit Cost

4Q24

1Q25 NIM change: +4bps QoQ

1Q25

(1) Cumulative spot beta = (change in spot interest bearing deposit cost 8/31/24 to 3/31/25) / (change in Fed Funds targe rate 8/31/24 to 3/31/25)

Average Loans & Deposits, Yields & Rates

16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0.00

Average Loans

($ Billions)

$13.7

$13.6

$13.5

1Q24

2Q24

3Q24

4Q24

1Q25

Average Loan Yield Relative to Fed Funds Rate

6.25%

6.20%

6.16%

5.95%

5.88%

5.50%

5.43%

4.82%

4.50%

1Q24

2Q24

3Q24

4Q24

1Q25

Avg Loan Yield (annualized)

Avg Fed Funds Rate

Average Deposits

($ Billions)

Average Cost of Deposits Relative to Fed Funds Rate

$14.9

$14.5

$14.7

$14.6

$14.5

3.8

3.6

3.7

3.6

3.4

11.1

10.9

11.0

94%

93%

92%

5.50%

4.51%

3.36%

5.50%

4.54%

3.39%

5.43%

4.59%

3.44%

4.82%

4.38%

3.32%

4.50%

4.14%

3.18%

1Q24

2Q24

3Q24

4Q24

1Q25

Avg Interest Bearing ("IB") Deposits

Avg Non IB Deposits

Avg Loan-to-Deposit Ratio

1Q24

2Q24

3Q24

4Q24

1Q25

Cost of Total Deposits (ann.)

Cost of IB Deposits (ann.)

Avg Fed Funds Rate

Disclaimer

Hope Bancorp Inc. published this content on April 22, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 22, 2025 at 12:05 UTC.