Matthew Clark's questions to Hope Bancorp Inc (HOPE) leadership • Q4 2024
Question
Matthew Clark inquired about Hope Bancorp's deposit beta outlook for the current rate cycle, the drivers behind the low double-digit expense growth guidance for 2025, and the expected loan growth mix for the legacy Hope portfolio. He also asked for details on the elevated net charge-offs in the fourth quarter.
Answer
CFO Julianna Balicka stated that the company aims for a better deposit beta than in past cycles, noting the 42% beta already achieved is a strong start. She explained the 2025 expense guidance reflects a transitional period for the Territorial Bancorp acquisition and continued investment in talent and technology. Chairman, President and CEO Kevin Kim added that legacy Hope's loan growth will be in the low single-digits, driven by C&I, with nominal CRE growth. Regarding credit, Mr. Kim noted that while Q4 charge-offs were elevated, the full-year 2024 rate of 19 basis points was manageable and lower than 2023.