Gary Tenner's questions to Hope Bancorp Inc (HOPE) leadership • Q4 2024
Question
Gary Tenner questioned the deposit trends during the quarter, particularly the mix shift and the competitive pricing environment in the Korean-American banking space. He also sought to clarify if the Q4 gain on SBA loan sales represents a good quarterly run rate for the 2025 fee income guidance.
Answer
CFO Julianna Balicka explained that the Q4 deposit outflows were typical seasonal fluctuations related to commercial depositors in the mortgage industry. She acknowledged the market remains competitive but highlighted the company's success in achieving a 42% beta on interest-bearing deposit costs. Chairman, President and CEO Kevin Kim confirmed that the fourth quarter's gain on SBA loan sales is a good run rate to assume for 2025.