Hope Bancorp (HOPE) Investor presentation summary

Strategic rationale and market expansion

• Acquisition of SMBC MANUBANK's Commercial Banking Unit enhances commercial banking capabilities and expands reach across the mainland U.S. and Hawaii.

• Eight new branches in Southern California deepen the core market footprint in the greater Los Angeles area.

• Collaboration with Sumitomo Mitsui Banking Corporation creates a unique platform to serve Asian multinational businesses.

Financial impact and transaction structure

• All-cash transaction for net assets, optimizing capital and improving return on tangible common equity.

• Adds approximately $2.5B in loans and $2.7B in deposits, each increasing by 17% over standalone figures.

• Estimated after-tax merger-related costs of ~$30M, incurred in the first year post-close.

• Pro forma TCE ratio estimated at 8.1%, with tangible book value per share dilution of 4.5%.

• Estimated EPS accretion of 20%+ and ROTCE of ~12% by 2027.

Loan and deposit diversification

• Combined loan portfolio becomes more diversified, with commercial real estate at 58% and C&I at 28%.

• Deposit mix improves, with cost of deposits at 2.61% and increased share of MMDA, interest-bearing DDA, and savings.

• Specialty deposit segments include trust & estate banking, non-profit organizations, and high net worth clients.