Hope Bancorp, Inc. (NASDAQ:HOPE) Q2 2023 Earnings Call Transcript

Julianna Balicka: And Gary just to add to the maturities of CREs that are coming up. You specifically asked multi- tenant retail and of those in the remainder of 2023 is at $72 million and then another $127 million in 2024. But our total CRE maturities in 2023 will be or $470 million and then in 2024 $742 million.

Gary Tenner: Thank you.

Operator: [Operator Instructions] Our next question comes from Chris McGratty of KBW. Go ahead.

Christopher McGratty: Thanks for the follow-up. In terms of the balance sheet size, can you just remind us what level of cash is coming off the bond portfolio monthly or quarterly. And then Kevin you alluded to just the excess cash that’s being held like do you see this being the right amount of cash for the foreseeable future? Do you think they work that down? Is that part of the margin kind of stability narrative that’s appearing?

Kevin Kim: Yes. Deposit outflows in response to the bank failures earlier this year have been stabilized, and we are starting to see some of those deposits actually coming back to the bank, and we also have product campaigns in place. And when deposit growth accelerates and the deposit situation normalizes, we think we will return to more normalized levels of liquidity. But for the time being, we think an elevated level of cash is prudent, and I think that the case industry-wide. So we will hold the higher level of cash for the time being that will gradually decrease as our deposit situations improve.

Julianna Balicka: And to your other question, the average cash flow coming off our bond book is about $15 million to $20 million a month. And we’re targeting purchasing $20 million to $30 million of investments with that cash flow. So replacing our investment securities, but also building that book up by about $10 million per month. So for a longer-term kind of larger sized investment securities book in terms of our optimal balance sheet mix kind of post this banking industry discussion.

Christopher McGratty: Okay. That’s helpful. Thanks a lot.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Kevin Kim: Once again, thank you all for joining us today, and we look forward to speaking with you again next quarter. Bye, everyone.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.