Hope Bancorp : Second Quarter 2023 Earnings Conference Presentation

Total Capital & TCE Ratio

at 6/30/23

12.64%/8.04%

Gross Loans at 6/30/23

$14.9B

2Q23 Net Recovery Ratio

(annualized)

0.01%

Total Deposits at 6/30/23

$15.6B

2Q23 Net Income & EPS

$38.0MM /$0.32

Strong Capital & Liquidity

• Tangible common equity ("TCE") ratio1 was 8.04% at 6/30/23, +13 bps Q-o-Q
• Company's total capital ratio was 12.64% at 6/30/23, +39 bps Q-o-Q
• Avail. borrowing capacity, cash & equivalents, & unpledged investment securities: $7.7B, or 50% of deposits, at 6/30/23

Loans

• New loan production for 2Q23 totaled $491MM
• Loans receivable of $14.9B at 6/30/23, -1%Q-o-Q and +2% Y-o-Y

Asset Quality

• Asset quality continues to be healthy
• Net recoveries of $552,000 for 2Q23
• Nonperforming assets ("NPA") of $77MM, or 0.38% of total assets, at 6/30/23, -3%Q-o-Q and -30%Y-o-Y

Deposits

• Deposits of $15.6B at 6/30/23, -1%Q-o-Q and +4% Y-o-Y
• Granular deposit base with 34% of deposits in consumer accounts. Consumer deposits increased 3% YTD and 13% Y-o-Y
• Bank's uninsured deposits ratio was 36% at 6/30/23, compared with 38% at 3/31/23

Earnings & Profitability

• 2Q23 net income: $38MM, or $0.32 per diluted share
• 2Q23 Pre-provision net revenue ("PPNR") 1: $60MM, +11% Q-o-Q

Strong Capital Ratios

Common Equity Tier 1 Capital Ratio

Well

Capitalized

6.50%

Total Capital Ratio

Well

Capitalized

10.00%

Tangible Common Equity Ratio1

Leverage Ratio

Well

Capitalized

5.00%

• Risk-basedCapital ratios increased Q-o-Q.All regulatory capital ratios meaningfully above requirements for "well-capitalized"financial institutions. Holding Company total capital ratio of 12.64% and Bank-leveltotal capital ratio of 12.42% at 6/30/23
• Proforma capital very strong: Adjustments for the allowance for credit losses ("ACL") and hypothetical adjustments for investment security marks not otherwise already reflected in equity, still results in very strong capital ratios
• Dividend: Quarterly common stock dividend of $0.14 per share, equivalent to $0.56 per share annualized. Equivalent to a dividend yield of 6.65% at 6/30/23
• No buybacks during 2Q23
• Equity: Book value per common share of $17.23 & TCE per share1 of $13.32 at 6/30/23

1 TCE ratio and TCE per share are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix on Slide 20.

• Proforma ratios at 6/30/23 are non-GAAP financial measures and reflect (a) inclusion of on- and off-balance sheet allowance for credit losses ("ACL") not already in capital; (b) treatment of held-to-maturity ("HTM") securities as if they were available-for-sale ("AFS"), with unrealized losses in accumulated other comprehensive income ("AOCI"); and (c) removal of the AOCI opt-out in calculating regulatory capital.

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Cash and cash equivalents increased to $2.3B at 6/30/23, up from $2.2B at 3/31/23. Reflects continued conservative approach to liquidity risk management, in response to the banking industry disruption earlier in year

Bank Term Funding Program: $1.7B outstanding at 6/30/23, with a weighted average rate of 4.47%. Positive carry and contribution to net interest income

Available borrowing capacity, cash and cash equivalents, and unpledged investment securities of $7.7B at 6/30/23, equivalent to 50% of total deposits

Investment securities of $2.2B on balance sheet at 6/30/23, represented 11% of total assets. Effective duration of 4.8 at 6/30/23. Predominantly debt securities AFS. Primarily fixed- rate portfolio

Company paid off $197MM of Convertible Senior Notes in May 2023 with existing cash

Investment Securities Portfolio