0001128361false00011283612023-10-232023-10-23
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
October 23, 2023
Date of Report (Date of earliest event reported)
| | |
| HOPE BANCORP INC |
| (Exact name of registrant as specified in its charter) |
| | | | | | | | | | | | | | |
| Delaware | 000-50245 | 95-4849715 |
| (State of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
3200 Wilshire Boulevard, Suite 1400
Los Angeles, California 90010
(Address of principal executives offices, including zip code)
(213) 639-1700
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
| Common Stock | , | par value $0.001 per share | HOPE | NASDAQ Global Select Market |
| (Title of class) | (Trading Symbol) | (Name of exchange on which registered) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 23, 2023, Hope Bancorp, Inc. (“HOPE” or the “Company”) issued a news release concerning its results of operations and financial condition for the third quarter and nine months ended and as of September 30, 2023. A copy of the October 23, 2023 news release is furnished as Exhibit 99.1 and incorporated herein by reference.
The information furnished under Item 2.02, Item 7.01, and certain exhibits under Item 9.01 of this Current Report on Form 8-K (including Exhibits 99.1 and 99.2 to this Current Report on Form 8-K) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act of 1933 or the Exchange Act, except as shall be set forth as a specific reference in such filing.
Item 7.01. Regulation FD Disclosure
The Company previously announced that it will host an investor conference call on Monday, October 23, 2023 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its third quarter quarter and nine months ended and as of June 30, 2023. A presentation to accompany the conference call, which contains certain historical and forward-looking information relating to the Company (the “Presentation Materials”), has been made available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. A copy of the Presentation Materials is furnished as Exhibit 99.2 and incorporated herein by reference.
Item 8.01 Other Events.
On October 23, 2023, the Company issued a news release announcing that its Board of Directors declared a quarterly cash dividend of $0.14 per common share. The cash dividend is payable on or about November 16, 2023 to all stockholders of record as of the close of business on November 2, 2023. A copy of the October 23, 2023 news release is attached hereto as Exhibit 99.3.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| | | | | | | | |
| Exhibit No. | | Description of Exhibit |
| | |
| 99.1 | | |
| 99.2 | | |
| 99.3 | | |
| 104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | | | | | | |
| | HOPE BANCORP, INC. |
| | | |
| Date: October 23, 2023 | By: | /s/ Kevin S. Kim | |
| | Kevin S. Kim | |
| | Chairman, President and Chief Executive Officer |
News Release
HOPE BANCORP REPORTS 2023 THIRD QUARTER FINANCIAL RESULTS;
ANNOUNCES STRATEGIC REORGANIZATION
LOS ANGELES - October 23, 2023 - Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its third quarter and nine months ended September 30, 2023. For the three months ended September 30, 2023, net income totaled $30.0 million, or $0.25 per diluted common share. This compares with net income of $38.0 million, or $0.32 per diluted common share, in the preceding second quarter.
“Our third quarter 2023 net interest margin expanded 13 basis points, and our net interest income grew 4% quarter-over-quarter,” stated Kevin S. Kim, Chairman, President and Chief Executive Officer. “We maintained disciplined expense control and our noninterest expenses decreased 1% over the same period. However, we recorded a provision for credit losses of $17 million for the third quarter, and certain one-time gains in the second quarter 2023 noninterest income did not reoccur. As a result, our net income declined compared with the prior quarter.”
“Our balance sheet continued to strengthen. Total deposits grew to $15.7 billion at September 30, 2023, up 1% from June 30, 2023, reflecting growth in customer deposits, partially offset by a planned reduction of brokered time deposits. Our total capital ratio increased to 13.23% as of September 30, 2023, and all our regulatory capital ratios expanded quarter-over-quarter,” continued Kim. “Our deposit growth, taken together with our expanding capital and ample liquidity, positions us well to take advantage of profitable growth opportunities going forward.”
Strategic Reorganization
The Company also announced today a strategic reorganization designed to enhance shareholder value over the long term. Accordingly, the Company realigned its structure around lines of business and product delivery channels, optimized its production capacity and reduced headcount. The restructuring is expected to generate over $40 million in estimated annualized cost savings, largely related to the reduction in staffing, savings from a planned branch rationalization, subject to customary notices and approvals, and operational process improvements. The Company expects to recognize one-time charges of approximately $12 million in the fourth quarter of 2023 related to the reorganization.
“As the largest Korean American bank in the United States, Bank of Hope has made great strides in transitioning from a traditional community bank into a regional bank serving a wide range of consumer, small business, commercial and corporate customers,” commented Kim. “Today’s strategic reorganization further evolves our business model. As a result, we expect to operate our Bank more efficiently, strengthen our franchise, enhance the customer experience and expand our customer relationships, benefiting all our stakeholders through sustainably improved profitability.”
Financial Summary
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| At or for the Three Months Ended |
| (dollars in thousands, except per share data) (unaudited) | 9/30/2023 | | 6/30/2023 | | 9/30/2022 |
| Net income | $ | 30,049 | | | $ | 38,022 | | | $ | 53,748 | |
| Diluted earnings per share | $ | 0.25 | | | $ | 0.32 | | | $ | 0.45 | |
| Net interest income before provision for credit losses | $ | 135,378 | | | $ | 130,689 | | | $ | 153,186 | |
Pre-provision net revenue (“PPNR”) (1) | $ | 56,810 | | | $ | 60,370 | | | $ | 82,627 | |
| Loans receivable | $ | 14,306,193 | | | $ | 14,864,810 | | | $ | 15,491,187 | |
| Deposits | $ | 15,739,859 | | | $ | 15,619,352 | | | $ | 15,502,209 | |
| Total assets | $ | 20,076,364 | | | $ | 20,366,138 | | | $ | 19,083,388 | |
| Total equity | $ | 2,030,424 | | | $ | 2,067,998 | | | $ | 1,975,725 | |
| Total capital ratio | | 13.23 | % | | | 12.64 | % | | | 11.72 | % |
Tangible common equity (“TCE”) ratio (1) | | 7.96 | % | | | 8.04 | % | | | 8.09 | % |
Allowance for credit losses to loans receivable | | 1.11 | % | | | 1.16 | % | | | 1.04 | % |
Nonperforming assets to total assets (2) | | 0.31 | % | | | 0.38 | % | | | 0.51 | % |
Return on average assets (“ROA”) (3) | | 0.60 | % | | | 0.74 | % | | | 1.17 | % |
Return on average equity (“ROE”) (3) | | 5.78 | % | | | 7.34 | % | | | 10.58 | % |
Return on average TCE (“ROTCE”) (1) (3) | | 7.47 | % | | | 9.49 | % | | | 13.77 | % |
ROA (PPNR) (1) (3) | | 1.13 | % | | | 1.18 | % | | | 1.79 | % |
Net interest margin (3) | | 2.83 | % | | | 2.70 | % | | | 3.49 | % |
| Efficiency ratio | | 60.5 | % | | | 59.1 | % | | | 50.4 | % |
__________________
(1) PPNR, TCE ratio, ROTCE, and ROA (PPNR) are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.
(2) Excludes delinquent Small Business Administration (“SBA”) loans that are guaranteed and currently in liquidation.
(3) Annualized.
Operating Results for the 2023 Third Quarter
Net interest income growth and net interest margin expansion. Net interest income before provision for credit losses for the 2023 third quarter totaled $135.4 million, growing 4% from $130.7 million in the preceding second quarter. Third quarter 2023 net interest margin expanded 13 basis points to 2.83%, up from 2.70% in the 2023 second quarter. The linked quarter net interest income growth and net interest margin expansion reflected higher yields on earning assets, a decrease in the average volume of borrowings and debt, and an increase in the average volume of interest-earning cash and deposits at other banks, partially offset by a higher cost of funds and a lower average volume of loans.
Third quarter 2023 weighted average yield on earning assets of 5.77% expanded 24 basis points quarter-over-quarter; the rate of change accelerated from the previous quarter. In comparison, the third quarter 2023 weighted average cost of funds of 3.16% increased 14 basis points quarter-over-quarter; the rate of change decelerated from the previous quarter.
Noninterest income. Noninterest income for the 2023 third quarter totaled $8.3 million, compared with $17.0 million in the preceding second quarter. Second quarter 2023 noninterest income included a one-time $5.8 million cash distribution from a gain on an investment in an affordable housing partnership and $1.9 million of gains on SBA loan sales. The Company did not sell any SBA 7(a) loans during the 2023 third quarter, retaining loan production on its balance sheet instead. In comparison, during the preceding 2023 second quarter, the Company sold $38.4 million of the guaranteed portion of SBA 7(a) loans for net gains on sale of $1.9 million.
Noninterest expense. Noninterest expense for the 2023 third quarter decreased 1% to $86.9 million, down from $87.3 million in the preceding second quarter. The linked quarter decrease was largely driven by lower salaries and employee benefits expense and lower FDIC assessment expense, partially offset by higher earned interest credit costs. Third quarter 2023 salaries and employee benefits expense decreased 2% to $51.0 million, down from $52.3 million in the 2023 second quarter. The Company’s efficiency ratio for the 2023 third quarter was 60.5%, compared with 59.1% in the preceding second quarter.
Tax rate. The effective tax rate for the 2023 third quarter was 24.9%, compared with 26.1% for the preceding second quarter. The year-to-date effective tax rate for the first nine months of 2023 was 25.7%.
Balance Sheet Summary
Strong Liquidity. At September 30, 2023, cash and cash equivalents increased to $2.50 billion, up from $2.30 billion at June 30, 2023, and up from $331.3 million at September 30, 2022. Available borrowing capacity, cash and cash equivalents, and unpledged investment securities totaled $8.29 billion at September 30, 2023, equivalent to 53% of total deposits and well exceeding the Bank’s uninsured deposit balances.
Loans. Loans receivable of $14.31 billion at September 30, 2023, decreased 4% from $14.86 billion at June 30, 2023, reflecting our prudent approach to loan growth, an intentional decrease in mortgage warehouse lines, and the impact of paydowns and payoffs in a high interest rate environment. Year-over-year, loans receivable decreased 8%. The following table sets forth the loan portfolio composition and percentage of total loans at September 30, 2023, June 30, 2023, and September 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in thousands) (unaudited) | 9/30/2023 | | 6/30/2023 | | 9/30/2022 |
| Balance | | Percentage | | Balance | | Percentage | | Balance | | Percentage |
| Commercial real estate (“CRE”) loans | $ | 8,972,886 | | | 62.7 | % | | $ | 9,192,160 | | | 61.9 | % | | $ | 9,504,893 | | | 61.3 | % |
| Commercial and industrial (“C&I”) loans | 4,450,341 | | | 31.1 | % | | 4,805,126 | | | 32.3 | % | | 5,124,421 | | | 33.1 | % |
| Residential mortgage and other loans | 882,966 | | | 6.2 | % | | 867,524 | | | 5.8 | % | | 861,873 | | | 5.6 | % |
| Loans receivable | $ | 14,306,193 | | | 100.0 | % | | $ | 14,864,810 | | | 100.0 | % | | $ | 15,491,187 | | | 100.0 | % |
Deposits. Total deposits of $15.74 billion at September 30, 2023, grew 1% from $15.62 billion at June 30, 2023, reflecting growth in customer deposits, partially offset by a planned reduction of brokered time deposits. Year-over-year, total deposits increased 2%. The gross loan-to-deposit ratio was 91.0% at September 30, 2023, compared with 95.5% at June 30, 2023, and 100.2% a year ago at September 30, 2022. The following table sets forth the deposit composition and percentage of total deposits at September 30, 2023, June 30, 2023, and September 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in thousands) (unaudited) | 9/30/2023 | | 6/30/2023 | | 9/30/2022 |
| Balance | | Percentage | | Balance | | Percentage | | Balance | | Percentage |
| Noninterest bearing demand deposits | $ | 4,249,788 | | | 27.0 | % | | $ | 4,229,247 | | | 27.1 | % | | $ | 5,590,952 | | | 36.1 | % |
Money market and interest bearing
demand deposits | 4,424,918 | | | 28.1 | % | | 4,188,584 | | | 26.8 | % | | 5,885,093 | | | 38.0 | % |
| Savings deposits | 430,765 | | | 2.8 | % | | 224,495 | | | 1.4 | % | | 317,841 | | | 2.0 | % |
| Time deposits | 6,634,388 | | | 42.1 | % | | 6,977,026 | | | 44.7 | % | | 3,708,323 | | | 23.9 | % |
| Total deposits | $ | 15,739,859 | | | 100.0 | % | | $ | 15,619,352 | | | 100.0 | % | | $ | 15,502,209 | | | 100.0 | % |
| | | | | | | | | | | |
| Gross loan-to-deposit ratio | | | 91.0 | % | | | | 95.5 | % | | | | 100.2 | % |
Uninsured deposits at September 30, 2023, represented 37% of the Bank’s deposits.
Borrowings. Federal Home Loan Bank and Federal Reserve Bank borrowings totaled $1.80 billion at September 30, 2023, compared with $2.26 billion at June 30, 2023, and $1.07 billion at September 30, 2022. Linked quarter growth in deposits and decrease in loans reduced the need for borrowings in the 2023 third quarter.
Credit Quality and Allowance for Credit Losses
Nonperforming assets. Nonperforming assets totaled $61.7 million at September 30, 2023, a decrease of 20% from June 30, 2023. The quarter-over-quarter decrease in nonperforming assets reflects charge offs of nonaccrual loans, payoffs and workouts, partially offset by new inflows. The nonperforming assets ratio was 0.31% of total assets at September 30, 2023, an improvement from 0.38% at June 30, 2023.
The following table sets forth the components of nonperforming assets at September 30, 2023, June 30, 2023, and September 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in thousands) (unaudited) | 9/30/2023 | | 6/30/2023 | | 9/30/2022 |
Loans on nonaccrual status (1) | $ | 39,081 | | | $ | 61,252 | | | $ | 64,571 | |
Accruing delinquent loans past due 90 days or more | | 21,579 | | | | 15,182 | | | | 5,306 | |
Accruing troubled debt restructured loans (2) | | — | | | | — | | | | 25,631 | |
| Total nonperforming loans | | 60,660 | | | | 76,434 | | | | 95,508 | |
| Other real estate owned | | 1,043 | | | | 938 | | | | 1,480 | |
| Total nonperforming assets | $ | 61,703 | | | $ | 77,372 | | | $ | 96,988 | |
| | | | | | | | |
| Nonperforming assets/total assets | | 0.31 | % | | | 0.38 | % | | | 0.51 | % |
_____________________________________
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $12.1 million, $11.9 million and $9.9 million at September 30, 2023, June 30, 2023, and September 30, 2022, respectively.
(2) The Company adopted ASU 2022-02 in 2023, which eliminated the concept of troubled debt restructured (“TDR”) loans from GAAP; therefore, accruing TDR loans are no longer included in nonperforming loans.
Net charge offs. The Company recorded net charge offs of $31.0 million in the 2023 third quarter. This included an idiosyncratic full charge off of $23.4 million related to a borrower that entered into Chapter 7 liquidation in August 2023. Related to this credit, the Company had recorded impairment reserves of $9.6 million at June 30, 2023. For the 2023 third quarter, the Company recorded a provision for credit losses of $16.8 million, compared with $8.9 million in the preceding second quarter.
The following table sets forth net charge offs (recoveries) and net charge offs (recoveries) to average loans receivable, annualized, for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended |
| (dollars in thousands) (unaudited) | 9/30/2023 | | 6/30/2023 | | 9/30/2022 |
| Net charge offs (recoveries) | $ | 30,987 | | | $ | (552) | | | $ | 219 | |
| Net charge offs (recoveries)/average loans receivable (annualized) | | 0.85 | % | | | (0.01) | % | | | 0.01 | % |
Allowance for credit losses. The allowance for credit losses totaled $158.8 million at September 30, 2023, compared with $173.0 million at June 30, 2023. The allowance coverage ratio was 1.11% of loans receivable at September 30, 2023, compared with 1.16% at June 30, 2023. Excluding the $9.6 million of impairment reserves related to the aforementioned charged off credit, the allowance coverage ratio as of June 30, 2023, was 1.10%. Year-over-year, allowance coverage of loans receivable increased from 1.04% at September 30, 2022.
The following table sets forth the allowance for credit losses and allowance coverage ratios at September 30, 2023, June 30, 2023, and September 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in thousands) (unaudited) | 9/30/2023 | | 6/30/2023 | | 9/30/2022 |
| Allowance for credit losses | $ | 158,809 | | | $ | 172,996 | | | $ | 160,561 | |
| Allowance for credit losses/loans receivable | | 1.11 | % | | | 1.16 | % | | | 1.04 | % |
Capital
The Company’s capital ratios are strong and all regulatory capital ratios expanded quarter-over-quarter. At September 30, 2023, the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. The following table sets forth the capital ratios for the Company at September 30, 2023, June 30, 2023, and September 30, 2022:
| | | | | | | | | | | | | | | | | | | | | | | |
(unaudited) | 9/30/2023 | | 6/30/2023 | | 9/30/2022 | | Minimum Guideline for “Well-Capitalized” |
| Common Equity Tier 1 Capital Ratio | 11.67% | | 11.05% | | 10.32% | | 6.50% |
| Tier 1 Capital Ratio | 12.32% | | 11.68% | | 10.92% | | 8.00% |
| Total Capital Ratio | 13.23% | | 12.64% | | 11.72% | | 10.00% |
| Leverage Ratio | 9.83% | | 9.57% | | 10.25% | | 5.00% |
At September 30, 2023, total stockholders’ equity was $2.03 billion, or $16.92 per share, tangible common equity per share was $13.01, and the tangible common equity ratio was 7.96%. Quarter-over-quarter, stockholders’ equity declined by 2%, or $37.6 million, primarily reflecting a negative change in accumulated other comprehensive income (“AOCI”) of $53.8 million and $16.8 million in common dividends declared, partially offset by $30.0 million in net income. The following table sets forth the TCE per share and the TCE ratio at September 30, 2023, June 30, 2023, and September 30, 2022:
| | | | | | | | | | | | | | | | | |
| (unaudited) | 9/30/2023 | | 6/30/2023 | | 9/30/2022 |
TCE per share (1) | $13.01 | | $13.32 | | $12.60 |
TCE ratio (1) | 7.96% | | 8.04% | | 8.09% |
__________________
(1) TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.
Investor Conference Call
The Company previously announced that it will host an investor conference call on Monday, October 23, 2023, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review unaudited financial results for its third quarter ended September 30, 2023. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through October 30, 2023, replay access code 5386919.
Non-GAAP Financial Metrics
This news release contains certain non-GAAP financial measure disclosures, including PPNR, TCE per share, TCE ratio, ROTCE, ROA (PPNR), and ROE (PPNR). Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operational performance and the Company’s capital levels and has included these figures in response to market participant interest in these financial metrics. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the first and only super regional Korean American bank in the United States with $20.08 billion in total assets as of September 30, 2023. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 54 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama, and Georgia. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, New York City, Northern California and Houston; commercial loan production offices in Northern California, Seattle and Tampa, Fla.; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate lending, commercial and industrial lending, SBA lending, and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.
Forward-Looking Statements
Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market, statements regarding our business strategies, objectives and vision, and statements about our strategic reorganization. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible further deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company’s allowances for credit losses; regulatory risks associated with current and future regulations; and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company’s most recent Annual Report on Form 10-K. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
Contacts:
Julianna Balicka Angie Yang
EVP & Chief Financial Officer SVP, Director of Investor Relations & Corporate Communications
213-235-3235 213-251-2219
julianna.balicka@bankofhope.com angie.yang@bankofhope.com
# # #
(tables follow)
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets: | 9/30/2023 | | 6/30/2023 | | % change | | | | | | 9/30/2022 | | % change |
| Cash and due from banks | $ | 2,500,323 | | | $ | 2,302,339 | | | 9 | % | | | | | | $ | 331,336 | | | 655 | % |
| Investment securities | 2,260,837 | | | 2,186,346 | | | 3 | % | | | | | | 2,264,533 | | | — | % |
| | | | | | | | | | | | | |
| Federal Home Loan Bank (“FHLB”) stock and other investments | 60,433 | | | 60,213 | | | — | % | | | | | | 65,192 | | | (7) | % |
| Loans held for sale, at the lower of cost or fair value | 19,502 | | | 49,246 | | | (60) | % | | | | | | 41,989 | | | (54) | % |
| Loans receivable | 14,306,193 | | | 14,864,810 | | | (4) | % | | | | | | 15,491,187 | | | (8) | % |
| Allowance for credit losses | (158,809) | | | (172,996) | | | (8) | % | | | | | | (160,561) | | | (1) | % |
| Net loans receivable | 14,147,384 | | | 14,691,814 | | | (4) | % | | | | | | 15,330,626 | | | (8) | % |
| Accrued interest receivable | 60,665 | | | 60,118 | | | 1 | % | | | | | | 42,363 | | | 43 | % |
| Premises and equipment, net | 51,764 | | | 50,513 | | | 2 | % | | | | | | 46,169 | | | 12 | % |
| Bank owned life insurance | 88,643 | | | 88,238 | | | — | % | | | | | | 76,788 | | | 15 | % |
| Goodwill | 464,450 | | | 464,450 | | | — | % | | | | | | 464,450 | | | — | % |
| Servicing assets | 10,457 | | | 11,532 | | | (9) | % | | | | | | 11,601 | | | (10) | % |
| Other intangible assets, net | 4,382 | | | 4,830 | | | (9) | % | | | | | | 6,212 | | | (29) | % |
| Other assets | 407,524 | | | 396,499 | | | 3 | % | | | | | | 402,129 | | | 1 | % |
| Total assets | $ | 20,076,364 | | | $ | 20,366,138 | | | (1) | % | | | | | | $ | 19,083,388 | | | 5 | % |
| | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | |
| Deposits | $ | 15,739,859 | | | $ | 15,619,352 | | | 1 | % | | | | | | $ | 15,502,209 | | | 2 | % |
| FHLB and Federal Reserve Bank (“FRB”) borrowings | 1,795,726 | | | 2,260,000 | | | (21) | % | | | | | | 1,072,000 | | | 68 | % |
| Convertible notes, net | 444 | | | 444 | | | — | % | | | | | | 216,913 | | | (100) | % |
| Subordinated debentures | 107,505 | | | 107,188 | | | — | % | | | | | | 106,258 | | | 1 | % |
| Accrued interest payable | 166,831 | | | 109,236 | | | 53 | % | | | | | | 11,713 | | | 1,324 | % |
| Other liabilities | 235,575 | | | 201,920 | | | 17 | % | | | | | | 198,570 | | | 19 | % |
| Total liabilities | $ | 18,045,940 | | | $ | 18,298,140 | | | (1) | % | | | | | | $ | 17,107,663 | | | 5 | % |
| | | | | | | | | | | | | |
| Stockholders’ Equity: | | | | | | | | | | | | | |
| Common stock, $0.001 par value | $ | 137 | | | $ | 137 | | | — | % | | | | | | $ | 137 | | | — | % |
| Additional paid-in capital | 1,436,769 | | | 1,433,788 | | | — | % | | | | | | 1,428,052 | | | 1 | % |
| Retained earnings | 1,140,870 | | | 1,127,624 | | | 1 | % | | | | | | 1,048,738 | | | 9 | % |
| Treasury stock, at cost | (264,667) | | | (264,667) | | | — | % | | | | | | (264,667) | | | — | % |
| Accumulated other comprehensive loss, net | (282,685) | | | (228,884) | | | (24) | % | | | | | | (236,535) | | | (20) | % |
| Total stockholders’ equity | 2,030,424 | | | 2,067,998 | | | (2) | % | | | | | | 1,975,725 | | | 3 | % |
| Total liabilities and stockholders’ equity | $ | 20,076,364 | | | $ | 20,366,138 | | | (1) | % | | | | | | $ | 19,083,388 | | | 5 | % |
| | | | | | | | | | | | | |
| Common stock shares - authorized | 150,000,000 | | | 150,000,000 | | | | | | | | | 150,000,000 | | | |
| Common stock shares - outstanding | 120,026,220 | | | 120,014,888 | | | | | | | | | 119,479,253 | | | |
| Treasury stock shares | 17,382,835 | | | 17,382,835 | | | | | | | | | 17,382,835 | | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended | | |
| 9/30/2023 | | 6/30/2023 | | % change | | 9/30/2022 | | % change | | 9/30/2023 | | 9/30/2022 | | % change | | |
| | | | | | | | | | | | | | | | | |
| Interest and fees on loans | $ | 229,937 | | | $ | 225,671 | | | 2 | % | | $ | 175,078 | | | 31 | % | | $ | 671,543 | | | $ | 452,774 | | | 48 | % | | |
| Interest on investment securities | 17,006 | | | 15,534 | | | 9 | % | | 13,498 | | | 26 | % | | 47,665 | | | 37,462 | | | 27 | % | | |
| Interest on cash and deposits at other banks | 28,115 | | | 25,295 | | | 11 | % | | 142 | | | NM | | 58,332 | | | 352 | | | NM | | |
| Interest on other investments | 735 | | | 684 | | | 7 | % | | 464 | | | 58 | % | | 2,114 | | | 1,290 | | | 64 | % | | |
| Total interest income | 275,793 | | | 267,184 | | | 3 | % | | 189,182 | | | 46 | % | | 779,654 | | | 491,878 | | | 59 | % | | |
| | | | | | | | | | | | | | | | | |
| Interest on deposits | 117,854 | | | 109,724 | | | 7 | % | | 30,667 | | | 284 | % | | 319,926 | | | 51,563 | | | 520 | % | | |
| Interest on borrowings | 22,561 | | | 26,771 | | | (16) | % | | 5,329 | | | 323 | % | | 59,783 | | | 12,415 | | | 382 | % | | |
| Total interest expense | 140,415 | | | 136,495 | | | 3 | % | | 35,996 | | | 290 | % | | 379,709 | | | 63,978 | | | 493 | % | | |
| | | | | | | | | | | | | | | | | |
| Net interest income before provision for credit losses | 135,378 | | | 130,689 | | | 4 | % | | 153,186 | | | (12) | % | | 399,945 | | | 427,900 | | | (7) | % | | |
| Provision for credit losses | 16,800 | | | 8,900 | | | 89 | % | | 9,200 | | | 83 | % | | 27,400 | | | 1,400 | | | 1,857 | % | | |
| Net interest income after provision for credit losses | 118,578 | | | 121,789 | | | (3) | % | | 143,986 | | | (18) | % | | 372,545 | | | 426,500 | | | (13) | % | | |
| | | | | | | | | | | | | | | | | |
| Service fees on deposit accounts | 2,415 | | | 2,325 | | | 4 | % | | 2,535 | | | (5) | % | | 6,961 | | | 6,779 | | | 3 | % | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net gains on sales of SBA loans | — | | | 1,872 | | | (100) | % | | 2,782 | | | (100) | % | | 4,097 | | | 14,189 | | | (71) | % | | |
| Net gains on sales of residential mortgage loans | 118 | | | 82 | | | 44 | % | | 29 | | | 307 | % | | 264 | | | 862 | | | (69) | % | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Other income and fees | 5,772 | | | 12,735 | | | (55) | % | | 8,009 | | | (28) | % | | 24,975 | | | 17,457 | | | 43 | % | | |
| Total noninterest income | 8,305 | | | 17,014 | | | (51) | % | | 13,355 | | | (38) | % | | 36,297 | | | 39,287 | | | (8) | % | | |
| | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | 51,033 | | | 52,305 | | | (2) | % | | 53,222 | | | (4) | % | | 160,507 | | | 152,025 | | | 6 | % | | |
| Occupancy | 7,149 | | | 6,967 | | | 3 | % | | 6,682 | | | 7 | % | | 21,637 | | | 21,195 | | | 2 | % | | |
| Furniture and equipment | 5,625 | | | 5,393 | | | 4 | % | | 4,967 | | | 13 | % | | 16,076 | | | 14,389 | | | 12 | % | | |
| | | | | | | | | | | | | | | | | |
| Data processing and communications | 2,891 | | | 2,917 | | | (1) | % | | 2,469 | | | 17 | % | | 8,630 | | | 7,823 | | | 10 | % | | |
| | | | | | | | | | | | | | | | | |
| FDIC assessment | 3,683 | | | 4,691 | | | (21) | % | | 1,633 | | | 126 | % | | 10,155 | | | 4,652 | | | 118 | % | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Earned interest credit | 6,377 | | | 5,090 | | | 25 | % | | 4,685 | | | 36 | % | | 15,894 | | | 5,996 | | | 165 | % | | |
| Other | 10,115 | | | 9,970 | | | 1 | % | | 10,256 | | | (1) | % | | 31,661 | | | 33,572 | | | (6) | % | | |
| Total noninterest expense | 86,873 | | | 87,333 | | | (1) | % | | 83,914 | | | 4 | % | | 264,560 | | | 239,652 | | | 10 | % | | |
| Income before income taxes | 40,010 | | | 51,470 | | | (22) | % | | 73,427 | | | (46) | % | | 144,282 | | | 226,135 | | | (36) | % | | |
| Income tax provision | 9,961 | | | 13,448 | | | (26) | % | | 19,679 | | | (49) | % | | 37,090 | | | 59,561 | | | (38) | % | | |
| Net income | $ | 30,049 | | | $ | 38,022 | | | (21) | % | | $ | 53,748 | | | (44) | % | | $ | 107,192 | | | $ | 166,574 | | | (36) | % | | |
| | | | | | | | | | | | | | | | | |
| Earnings Per Common Share - Basic | $ | 0.25 | | | $ | 0.32 | | | | | $ | 0.45 | | | | | $ | 0.89 | | | $ | 1.39 | | | | | |
| Earnings Per Common Share - Diluted | $ | 0.25 | | | $ | 0.32 | | | | | $ | 0.45 | | | | | $ | 0.89 | | | $ | 1.38 | | | | | |
| | | | | | | | | | | | | | | | | |
| Weighted Average Shares Outstanding - Basic | 120,020,567 | | | 119,953,174 | | | | | 119,476,035 | | | | | 119,843,382 | | | 119,940,044 | | | | | |
| Weighted Average Shares Outstanding - Diluted | 120,374,618 | | | 120,129,359 | | | | | 119,996,523 | | | | | 120,249,952 | | | 120,595,988 | | | | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
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| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
|
| | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended |
| Profitability measures (annualized): | 9/30/2023 | | 6/30/2023 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| ROA | 0.60 | % | | 0.74 | % | | 1.17 | % | | 0.72 | % | | 1.23 | % |
| ROE | 5.78 | % | | 7.34 | % | | 10.58 | % | | 6.92 | % | | 10.85 | % |
ROA (PPNR) (1) | 1.13 | % | | 1.18 | % | | 1.79 | % | | 1.15 | % | | 1.68 | % |
ROE (PPNR) (1) | 10.93 | % | | 11.65 | % | | 16.26 | % | | 11.08 | % | | 14.83 | % |
ROTCE (1) | 7.47 | % | | 9.49 | % | | 13.77 | % | | 8.95 | % | | 14.10 | % |
| Net interest margin | 2.83 | % | | 2.70 | % | | 3.49 | % | | 2.84 | % | | 3.36 | % |
| Efficiency ratio (not annualized) | 60.46 | % | | 59.13 | % | | 50.39 | % | | 60.65 | % | | 51.30 | % |
| Noninterest expense / average assets | 1.73 | % | | 1.71 | % | | 1.82 | % | | 1.77 | % | | 1.77 | % |
| | | | | | | | | |
(1) ROA (PPNR), ROE (PPNR), and ROTCE are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10. |
|
| | | | | | | | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
| 9/30/2023 | | 6/30/2023 | | 9/30/2022 |
| | | Interest | | Annualized | | | | Interest | | Annualized | | | | Interest | | Annualized |
| Average | | Income/ | | Average | | Average | | Income/ | | Average | | Average | | Income/ | | Average |
| Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost |
| INTEREST EARNING ASSETS: | | | | | | | | | | | | | | | | | |
| Loans, including loans held for sale | $ | 14,550,106 | | | $ | 229,937 | | | 6.27 | % | | $ | 15,105,212 | | | $ | 225,671 | | | 5.99 | % | | $ | 14,925,298 | | | $ | 175,078 | | | 4.65 | % |
| Investment securities | 2,275,133 | | | 17,006 | | | 2.97 | % | | 2,243,614 | | | 15,534 | | | 2.78 | % | | 2,366,696 | | | 13,498 | | | 2.26 | % |
Interest earning cash and deposits at
other banks | 2,106,469 | | | 28,115 | | | 5.30 | % | | 1,996,924 | | | 25,295 | | | 5.08 | % | | 54,870 | | | 142 | | | 1.03 | % |
| FHLB stock and other investments | 47,316 | | | 735 | | | 6.16 | % | | 47,044 | | | 684 | | | 5.83 | % | | 52,854 | | | 464 | | | 3.48 | % |
| Total interest earning assets | $ | 18,979,024 | | | $ | 275,793 | | | 5.77 | % | | $ | 19,392,794 | | | $ | 267,184 | | | 5.53 | % | | $ | 17,399,718 | | | $ | 189,182 | | | 4.31 | % |
| | | | | | | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | |
| Money market and interest bearing demand | $ | 4,202,076 | | | $ | 36,574 | | | 3.45 | % | | $ | 4,279,819 | | | $ | 34,377 | | | 3.22 | % | | $ | 6,255,271 | | | $ | 19,614 | | | 1.24 | % |
| Savings deposits | 331,354 | | | 2,240 | | | 2.68 | % | | 216,060 | | | 674 | | | 1.25 | % | | 324,487 | | | 969 | | | 1.18 | % |
| Time deposits | 6,862,038 | | | 79,040 | | | 4.57 | % | | 6,890,035 | | | 74,673 | | | 4.35 | % | | 3,146,432 | | | 10,084 | | | 1.27 | % |
| Total interest bearing deposits | 11,395,468 | | | 117,854 | | | 4.10 | % | | 11,385,914 | | | 109,724 | | | 3.87 | % | | 9,726,190 | | | 30,667 | | | 1.25 | % |
| FHLB and FRB borrowings | 1,809,322 | | | 19,821 | | | 4.35 | % | | 2,177,264 | | | 23,622 | | | 4.35 | % | | 448,837 | | | 2,393 | | | 2.12 | % |
| Convertible notes, net | 444 | | | 2 | | | 1.76 | % | | 96,621 | | | 598 | | | 2.45 | % | | 216,762 | | | 1,322 | | | 2.39 | % |
| Subordinated debentures | 103,429 | | | 2,738 | | | 10.36 | % | | 103,123 | | | 2,551 | | | 9.79 | % | | 102,182 | | | 1,614 | | | 6.18 | % |
| Total interest bearing liabilities | $ | 13,308,663 | | | $ | 140,415 | | | 4.19 | % | | $ | 13,762,922 | | | $ | 136,495 | | | 3.98 | % | | $ | 10,493,971 | | | $ | 35,996 | | | 1.36 | % |
| Noninterest bearing demand deposits | 4,312,117 | | | | | | | 4,366,868 | | | | | | | 5,719,213 | | | | | |
| Total funding liabilities/cost of funds | $ | 17,620,780 | | | | | 3.16 | % | | $ | 18,129,790 | | | | | 3.02 | % | | $ | 16,213,184 | | | | | 0.88 | % |
| Net interest income/net interest spread | | | $ | 135,378 | | | 1.58 | % | | | | $ | 130,689 | | | 1.55 | % | | | | $ | 153,186 | | | 2.95 | % |
| Net interest margin | | | | | 2.83 | % | | | | | | 2.70 | % | | | | | | 3.49 | % |
| | | | | | | | | | | | | | | | | |
| Cost of deposits: | | | | | | | | | | | | | | | | | |
| Noninterest bearing demand deposits | $ | 4,312,117 | | | $ | — | | | — | % | | $ | 4,366,868 | | | $ | — | | | — | % | | $ | 5,719,213 | | | $ | — | | | — | % |
| Interest bearing deposits | 11,395,468 | | | 117,854 | | | 4.10 | % | | 11,385,914 | | | 109,724 | | | 3.87 | % | | 9,726,190 | | | 30,667 | | | 1.25 | % |
| Total deposits | $ | 15,707,585 | | | $ | 117,854 | | | 2.98 | % | | $ | 15,752,782 | | | $ | 109,724 | | | 2.79 | % | | $ | 15,445,403 | | | $ | 30,667 | | | 0.79 | % |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Nine Months Ended | | | | | | |
| 9/30/2023 | | 9/30/2022 | | |
| | | Interest | | Annualized | | | | Interest | | Annualized | | | | | | |
| Average | | Income/ | | Average | | Average | | Income/ | | Average | | | | | | |
| Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost | | | | | | |
| INTEREST EARNING ASSETS: | | | | | | | | | | | | | | | | | |
| Loans, including loans held for sale | $ | 14,961,058 | | | $ | 671,543 | | | 6.00 | % | | $ | 14,378,774 | | | $ | 452,774 | | | 4.21 | % | | | | | | |
| Investment securities | 2,255,839 | | | 47,665 | | | 2.83 | % | | 2,469,858 | | | 37,462 | | | 2.03 | % | | | | | | |
Interest earning cash and deposits at
other banks | 1,531,561 | | | 58,332 | | | 5.09 | % | | 133,745 | | | 352 | | | 0.35 | % | | | | | | |
| FHLB stock and other investments | 47,135 | | | 2,114 | | | 6.00 | % | | 63,542 | | | 1,290 | | | 2.71 | % | | | | | | |
| Total interest earning assets | $ | 18,795,593 | | | $ | 779,654 | | | 5.55 | % | | $ | 17,045,919 | | | $ | 491,878 | | | 3.86 | % | | | | | | |
| | | | | | | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | |
| Money market and interest bearing demand | $ | 4,603,479 | | | $ | 112,349 | | | 3.26 | % | | $ | 6,360,040 | | | $ | 33,970 | | | 0.71 | % | | | | | | |
| Savings deposits | 268,145 | | | 3,741 | | | 1.87 | % | | 322,058 | | | 2,834 | | | 1.18 | % | | | | | | |
| Time deposits | 6,436,645 | | | 203,836 | | | 4.23 | % | | 2,683,217 | | | 14,759 | | | 0.74 | % | | | | | | |
| Total interest bearing deposits | 11,308,269 | | | 319,926 | | | 3.78 | % | | 9,365,315 | | | 51,563 | | | 0.74 | % | | | | | | |
| FHLB and FRB borrowings | 1,558,493 | | | 50,141 | | | 4.30 | % | | 423,875 | | | 4,537 | | | 1.43 | % | | | | | | |
| Convertible notes, net | 103,933 | | | 1,922 | | | 2.44 | % | | 216,538 | | | 3,967 | | | 2.42 | % | | | | | | |
| Subordinated debentures | 103,117 | | | 7,720 | | | 9.87 | % | | 101,882 | | | 3,911 | | | 5.06 | % | | | | | | |
| Total interest bearing liabilities | $ | 13,073,812 | | | $ | 379,709 | | | 3.88 | % | | $ | 10,107,610 | | | $ | 63,978 | | | 0.85 | % | | | | | | |
| Noninterest bearing demand deposits | 4,445,740 | | | | | | | 5,702,734 | | | | | | | | | | | |
| Total funding liabilities/cost of funds | $ | 17,519,552 | | | | | 2.90 | % | | $ | 15,810,344 | | | | | 0.54 | % | | | | | | |
| Net interest income/net interest spread | | | $ | 399,945 | | | 1.67 | % | | | | $ | 427,900 | | | 3.01 | % | | | | | | |
| Net interest margin | | | | | 2.84 | % | | | | | | 3.36 | % | | | | | | |
| | | | | | | | | | | | | | | | | |
| Cost of deposits: | | | | | | | | | | | | | | | | | |
| Noninterest bearing demand deposits | $ | 4,445,740 | | | $ | — | | | — | % | | $ | 5,702,734 | | | $ | — | | | — | % | | | | | | |
| Interest bearing deposits | 11,308,269 | | | 319,926 | | | 3.78 | % | | 9,365,315 | | | 51,563 | | | 0.74 | % | | | | | | |
| Total deposits | $ | 15,754,009 | | | $ | 319,926 | | | 2.72 | % | | $ | 15,068,049 | | | $ | 51,563 | | | 0.46 | % | | | | | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| AVERAGE BALANCES: | 9/30/2023 | | 6/30/2023 | | % change | | 9/30/2022 | | % change | | 9/30/2023 | | 9/30/2022 | | % change |
| Loans, including loans held for sale | $ | 14,550,106 | | | $ | 15,105,212 | | | (4) | % | | $ | 14,925,298 | | | (3) | % | | $ | 14,961,058 | | | $ | 14,378,774 | | | 4 | % |
| Investment securities | 2,275,133 | | | 2,243,614 | | | 1 | % | | 2,366,696 | | | (4) | % | | 2,255,839 | | | 2,469,858 | | | (9) | % |
| Interest earning cash and deposits at other banks | 2,106,469 | | | 1,996,924 | | | 5 | % | | 54,870 | | | 3739 | % | | 1,531,561 | | | 133,745 | | | 1045 | % |
| Interest earning assets | 18,979,024 | | | 19,392,794 | | | (2) | % | | 17,399,718 | | | 9 | % | | 18,795,593 | | | 17,045,919 | | | 10 | % |
| Total assets | 20,059,304 | | | 20,468,810 | | | (2) | % | | 18,428,874 | | | 9 | % | | 19,875,322 | | | 18,018,588 | | | 10 | % |
| | | | | | | | | | | | | | | |
| Interest bearing deposits | 11,395,468 | | | 11,385,914 | | | — | % | | 9,726,190 | | | 17 | % | | 11,308,269 | | | 9,365,315 | | | 21 | % |
| Interest bearing liabilities | 13,308,663 | | | 13,762,922 | | | (3) | % | | 10,493,971 | | | 27 | % | | 13,073,812 | | | 10,107,610 | | | 29 | % |
| Noninterest bearing demand deposits | 4,312,117 | | | 4,366,868 | | | (1) | % | | 5,719,213 | | | (25) | % | | 4,445,740 | | | 5,702,734 | | | (22) | % |
| Stockholders’ equity | 2,079,092 | | | 2,072,859 | | | — | % | | 2,032,362 | | | 2 | % | | 2,066,157 | | | 2,046,351 | | | 1 | % |
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| LOAN PORTFOLIO COMPOSITION: | 9/30/2023 | | 6/30/2023 | | % change | | 9/30/2022 | | % change | | | | | | |
| Commercial real estate (“CRE”) loans | $ | 8,972,886 | | | $ | 9,192,160 | | | (2) | % | | $ | 9,504,893 | | | (6) | % | | | | | | |
| Commercial and industrial (“C&I”) loans | 4,450,341 | | | 4,805,126 | | | (7) | % | | 5,124,421 | | | (13) | % | | | | | | |
| Residential mortgage and other loans | 882,966 | | | 867,524 | | | 2 | % | | 861,873 | | | 2 | % | | | | | | |
| Loans receivable | 14,306,193 | | | 14,864,810 | | | (4) | % | | 15,491,187 | | | (8) | % | | | | | | |
| Allowance for credit losses | (158,809) | | | (172,996) | | | (8) | % | | (160,561) | | | (1) | % | | | | | | |
| Loans receivable, net | $ | 14,147,384 | | | $ | 14,691,814 | | | (4) | % | | $ | 15,330,626 | | | (8) | % | | | | | | |
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| CRE LOANS BY PROPERTY TYPE: | 9/30/2023 | | 6/30/2023 | | % change | | 9/30/2022 | | % change | | | | | | |
| Multi-tenant retail | $ | 1,745,430 | | | $ | 1,778,068 | | | (2) | % | | $ | 1,904,132 | | | (8) | % | | | | | | |
| Hotels/motels | 826,732 | | | 868,286 | | | (5) | % | | 1,091,047 | | | (24) | % | | | | | | |
| Gas stations and car washes | 1,037,621 | | | 1,042,290 | | | — | % | | 1,056,217 | | | (2) | % | | | | | | |
| Mixed-use facilities | 813,571 | | | 834,948 | | | (3) | % | | 825,289 | | | (1) | % | | | | | | |
| Industrial warehouses | 1,254,643 | | | 1,301,075 | | | (4) | % | | 1,271,104 | | | (1) | % | | | | | | |
| Multifamily | 1,234,934 | | | 1,257,971 | | | (2) | % | | 1,199,320 | | | 3 | % | | | | | | |
| Single-tenant retail | 671,921 | | | 690,418 | | | (3) | % | | 728,432 | | | (8) | % | | | | | | |
| Office | 454,695 | | | 463,998 | | | (2) | % | | 432,586 | | | 5 | % | | | | | | |
| All other | 933,339 | | | 955,106 | | | (2) | % | | 996,766 | | | (6) | % | | | | | | |
| Total CRE loans | $ | 8,972,886 | | | $ | 9,192,160 | | | (2) | % | | $ | 9,504,893 | | | (6) | % | | | | | | |
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| DEPOSIT COMPOSITION: | 9/30/2023 | | 6/30/2023 | | % change | | 9/30/2022 | | % change | | | | | | |
| Noninterest bearing demand deposits | $ | 4,249,788 | | | $ | 4,229,247 | | | — | % | | $ | 5,590,952 | | | (24) | % | | | | | | |
| Money market and interest bearing demand | 4,424,918 | | | 4,188,584 | | | 6 | % | | 5,885,093 | | | (25) | % | | | | | | |
| Savings deposits | 430,765 | | | 224,495 | | | 92 | % | | 317,841 | | | 36 | % | | | | | | |
| Time deposits | 6,634,388 | | | 6,977,026 | | | (5) | % | | 3,708,323 | | | 79 | % | | | | | | |
| Total deposits | $ | 15,739,859 | | | $ | 15,619,352 | | | 1 | % | | $ | 15,502,209 | | | 2 | % | | | | | | |
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Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
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| Three Months Ended | | | | | | | | |
| NEW LOAN ORIGINATIONS: | 9/30/2023 | | 6/30/2023 | | 9/30/2022 | | | | | | | | |
| CRE | $ | 46,011 | | | $ | 115,444 | | | $ | 500,826 | | | | | | | | | |
| C&I | 201,420 | | | 318,063 | | | 732,341 | | | | | | | | | |
| SBA loans | 48,987 | | | 38,051 | | | 47,428 | | | | | | | | | |
| Residential mortgage and other loans | 32,920 | | | 19,016 | | | 68,099 | | | | | | | | | |
| Total new loan originations | $ | 329,338 | | | $ | 490,574 | | | $ | 1,348,694 | | | | | | | | | |
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| CAPITAL & CAPITAL RATIOS: | 9/30/2023 | | 6/30/2023 | | 9/30/2022 | | | | | | | | |
| Total stockholders’ equity | $ | 2,030,424 | | | $ | 2,067,998 | | | $ | 1,975,725 | | | | | | | | | |
| Total capital | $ | 2,105,754 | | | $ | 2,102,625 | | | $ | 2,000,653 | | | | | | | | | |
| Common equity tier 1 ratio | 11.67 | % | | 11.05 | % | | 10.32 | % | | | | | | | | |
| Tier 1 capital ratio | 12.32 | % | | 11.68 | % | | 10.92 | % | | | | | | | | |
| Total capital ratio | 13.23 | % | | 12.64 | % | | 11.72 | % | | | | | | | | |
| Leverage ratio | 9.83 | % | | 9.57 | % | | 10.25 | % | | | | | | | | |
| Total risk weighted assets | $ | 15,912,742 | | | $ | 16,640,323 | | | $ | 17,065,355 | | | | | | | | | |
| Book value per common share | $ | 16.92 | | | $ | 17.23 | | | $ | 16.54 | | | | | | | | | |
TCE per share (1) | $ | 13.01 | | | $ | 13.32 | | | $ | 12.60 | | | | | | | | | |
TCE ratio (1) | 7.96 | % | | 8.04 | % | | 8.09 | % | | | | | | | | |
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(1) TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10. |
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| Three Months Ended | | Nine Months Ended |
| ALLOWANCE FOR CREDIT LOSSES CHANGES: | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| Balance at beginning of period | $ | 172,996 | | | $ | 163,544 | | | $ | 162,359 | | | $ | 160,561 | | | $ | 151,580 | | | $ | 162,359 | | | $ | 140,550 | |
| ASU 2022-02 day 1 adoption impact | — | | | — | | | (407) | | | — | | | — | | | (407) | | | — | |
| Provision for credit losses | 16,800 | | | 8,900 | | | 1,700 | | | 8,200 | | | 9,200 | | | 27,400 | | | 1,400 | |
| Recoveries | 2,938 | | | 1,531 | | | 387 | | | 3,222 | | | 331 | | | 4,856 | | | 21,376 | |
| Charge offs | (33,925) | | | (979) | | | (495) | | | (9,624) | | | (550) | | | (35,399) | | | (2,765) | |
| Balance at end of period | $ | 158,809 | | | $ | 172,996 | | | $ | 163,544 | | | $ | 162,359 | | | $ | 160,561 | | | $ | 158,809 | | | $ | 160,561 | |
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| 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | |
| Allowance for unfunded loan commitments | $ | 3,143 | | | $ | 3,081 | | | $ | 2,971 | | | $ | 1,351 | | | $ | 1,231 | | | | | |
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Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
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| Three Months Ended | | Nine Months Ended |
| NET LOAN CHARGE OFFS (RECOVERIES): | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| CRE loans | $ | (2,227) | | | $ | 438 | | | $ | (109) | | | $ | 2,022 | | | $ | 9 | | | $ | (1,898) | | | $ | (16,917) | |
| C&I loans | 33,145 | | | (1,091) | | | 196 | | | 4,174 | | | 115 | | | 32,250 | | | (1,875) | |
| Residential mortgage and other loans | 69 | | | 101 | | | 21 | | | 206 | | | 95 | | | 191 | | | 181 | |
| Net loan charge offs (recoveries) | $ | 30,987 | | | $ | (552) | | | $ | 108 | | | $ | 6,402 | | | $ | 219 | | | $ | 30,543 | | | $ | (18,611) | |
| Net charge offs (recoveries)/average loans receivable (annualized) | 0.85 | % | | (0.01) | % | | — | % | | 0.17 | % | | 0.01 | % | | 0.27 | % | | (0.17) | % |
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| NONPERFORMING ASSETS: | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | |
Loans on nonaccrual status (1) | $ | 39,081 | | | $ | 61,252 | | | $ | 78,861 | | | $ | 49,687 | | | $ | 64,571 | | | | | |
| Accruing delinquent loans past due 90 days or more | 21,579 | | | 15,182 | | | 364 | | | 401 | | | 5,306 | | | | | |
Accruing troubled debt restructured loans (2) | — | | | — | | | — | | | 16,931 | | | 25,631 | | | | | |
| Total nonperforming loans | 60,660 | | | 76,434 | | | 79,225 | | | 67,019 | | | 95,508 | | | | | |
| Other real estate owned (“OREO”) | 1,043 | | | 938 | | | 938 | | | 2,418 | | | 1,480 | | | | | |
| Total nonperforming assets | $ | 61,703 | | | $ | 77,372 | | | $ | 80,163 | | | $ | 69,437 | | | $ | 96,988 | | | | | |
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| Nonperforming assets/total assets | 0.31 | % | | 0.38 | % | | 0.39 | % | | 0.36 | % | | 0.51 | % | | | | |
| Nonperforming assets/loans receivable & OREO | 0.43 | % | | 0.52 | % | | 0.53 | % | | 0.45 | % | | 0.63 | % | | | | |
| Nonperforming assets/total capital | 3.04 | % | | 3.74 | % | | 3.89 | % | | 3.44 | % | | 4.91 | % | | | | |
| Nonperforming loans/loans receivable | 0.42 | % | | 0.51 | % | | 0.53 | % | | 0.44 | % | | 0.62 | % | | | | |
| Nonaccrual loans/loans receivable | 0.27 | % | | 0.41 | % | | 0.52 | % | | 0.32 | % | | 0.42 | % | | | | |
| Allowance for credit losses/loans receivable | 1.11 | % | | 1.16 | % | | 1.09 | % | | 1.05 | % | | 1.04 | % | | | | |
| Allowance for credit losses/nonperforming loans | 261.80 | % | | 226.33 | % | | 206.43 | % | | 242.26 | % | | 168.11 | % | | | | |
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(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $12.1 million, $11.9 million, $7.6 million, $9.8 million, and $9.9 million, at September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively. | | | | |
(2) The Company adopted ASU 2022-02 in 2023, which eliminated the concept of TDR from GAAP; therefore, accruing TDR loans are no longer included in nonperforming loans. | | | | |
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| NONACCRUAL LOANS BY TYPE: | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | |
| CRE loans | $ | 26,687 | | | $ | 29,270 | | | $ | 44,376 | | | $ | 33,915 | | | $ | 47,807 | | | | | |
| C&I loans | 4,234 | | | 23,042 | | | 26,191 | | | 5,620 | | | 7,675 | | | | | |
| Residential mortgage and other loans | 8,160 | | | 8,940 | | | 8,294 | | | 10,152 | | | 9,089 | | | | | |
| Total nonaccrual loans | $ | 39,081 | | | $ | 61,252 | | | $ | 78,861 | | | $ | 49,687 | | | $ | 64,571 | | | | | |
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Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
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| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE: | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 |
| 30 - 59 days past due | $ | 2,906 | | | $ | 9,295 | | | $ | 7,662 | | | $ | 7,049 | | | $ | 13,092 | |
| 60 - 89 days past due | 506 | | | 178 | | | 249 | | | 2,243 | | | 4,933 | |
| Total accruing delinquent loans 30-89 days past due | $ | 3,412 | | | $ | 9,473 | | | $ | 7,911 | | | $ | 9,292 | | | $ | 18,025 | |
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| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE: | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 |
| CRE loans | $ | 611 | | | $ | 7,339 | | | $ | 3,652 | | | $ | 4,115 | | | $ | 9,694 | |
| C&I loans | 1,168 | | | 990 | | | 419 | | | 3,300 | | | 6,165 | |
| Residential mortgage and other loans | 1,633 | | | 1,144 | | | 3,840 | | | 1,877 | | | 2,166 | |
| Total accruing delinquent loans 30-89 days past due | $ | 3,412 | | | $ | 9,473 | | | $ | 7,911 | | | $ | 9,292 | | | $ | 18,025 | |
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| CRITICIZED LOANS: | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 |
| Special mention loans | $ | 186,600 | | | $ | 210,806 | | | $ | 166,472 | | | $ | 157,263 | | | $ | 79,399 | |
| Substandard loans | 174,161 | | | 134,203 | | | 138,224 | | | 104,073 | | | 204,713 | |
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| Total criticized loans | $ | 360,761 | | | $ | 345,009 | | | $ | 304,696 | | | $ | 261,336 | | | $ | 284,112 | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
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| Reconciliation of GAAP financial measures to non-GAAP financial measures |
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Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below. |
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| Three Months Ended | | Nine Months Ended |
| RETURN ON AVERAGE TANGIBLE COMMON EQUITY | 9/30/2023 | | 6/30/2023 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| Average stockholders’ equity | $ | 2,079,092 | | | $ | 2,072,859 | | | $ | 2,032,362 | | | $ | 2,066,157 | | | $ | 2,046,351 | |
| Less: Average goodwill and core deposit intangible assets, net | (469,079) | | | (469,515) | | | (470,941) | | | (469,525) | | | (471,424) | |
| Average TCE | $ | 1,610,013 | | | $ | 1,603,344 | | | $ | 1,561,421 | | | $ | 1,596,632 | | | $ | 1,574,927 | |
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| Net income | $ | 30,049 | | | $ | 38,022 | | | $ | 53,748 | | | $ | 107,192 | | | $ | 166,574 | |
| ROTCE (annualized) | 7.47 | % | | 9.49 | % | | 13.77 | % | | 8.95 | % | | 14.10 | % |
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| TANGIBLE COMMON EQUITY | 9/30/2023 | | 6/30/2023 | | 9/30/2022 | | | | |
| Total stockholders’ equity | $ | 2,030,424 | | | $ | 2,067,998 | | | $ | 1,975,725 | | | | | |
| Less: Goodwill and core deposit intangible assets, net | (468,832) | | | (469,280) | | | (470,662) | | | | | |
| TCE | $ | 1,561,592 | | | $ | 1,598,718 | | | $ | 1,505,063 | | | | | |
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| Total assets | $ | 20,076,364 | | | $ | 20,366,138 | | | $ | 19,083,388 | | | | | |
| Less: Goodwill and core deposit intangible assets, net | (468,832) | | | (469,280) | | | (470,662) | | | | | |
| Tangible assets | $ | 19,607,532 | | | $ | 19,896,858 | | | $ | 18,612,726 | | | | | |
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| TCE ratio | 7.96 | % | | 8.04 | % | | 8.09 | % | | | | |
| Common shares outstanding | 120,026,220 | | | 120,014,888 | | | 119,479,253 | | | | | |
| TCE per share | $ | 13.01 | | | $ | 13.32 | | | $ | 12.60 | | | | | |
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| Three Months Ended | | Nine Months Ended |
| PRE-PROVISION NET REVENUE | 9/30/2023 | | 6/30/2023 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
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| Net interest income before provision for credit losses | $ | 135,378 | | | $ | 130,689 | | | $ | 153,186 | | | $ | 399,945 | | | $ | 427,900 | |
| Noninterest income | 8,305 | | | 17,014 | | | 13,355 | | | 36,297 | | | 39,287 | |
| Revenue | 143,683 | | | 147,703 | | | 166,541 | | | 436,242 | | | 467,187 | |
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| Less: Noninterest expense | 86,873 | | | 87,333 | | | 83,914 | | | 264,560 | | | 239,652 | |
| PPNR | $ | 56,810 | | | $ | 60,370 | | | $ | 82,627 | | | $ | 171,682 | | | $ | 227,535 | |
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| Average assets | $ | 20,059,304 | | | $ | 20,468,810 | | | $ | 18,428,874 | | | $ | 19,875,322 | | | $ | 18,018,588 | |
| ROA (PPNR) (annualized) | 1.13 | % | | 1.18 | % | | 1.79 | % | | 1.15 | % | | 1.68 | % |
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| Average stockholders’ equity | 2,079,092 | | | 2,072,859 | | | 2,032,362 | | | 2,066,157 | | | 2,046,351 | |
| ROE (PPNR) (annualized) | 10.93 | % | | 11.65 | % | | 16.26 | % | | 11.08 | % | | 14.83 | % |
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2023 Third Quarter Earnings Conference Call Monday, October 23, 2023
Forward Looking Statements & Additional Disclosures This presentation may contain statements regarding future events or the future financial performance of Hope Bancorp, Inc. (the “Company”) that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market, statements regarding our business strategies, objectives and vision, and statements about our strategic reorganization. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible further deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company’s allowances for credit losses, regulatory risks associated with current and future regulations; and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company’s most recent Annual Report on Form 10-K. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law. 2
Strong Capital & Liquidity • Company’s total capital ratio was 13.23% at 9/30/23. All regulatory ratios expanded QoQ • Tangible common equity (“TCE”) ratio1 was 7.96% at 9/30/23 • Avail. borrowing capacity, cash & equivalents, & unpledged investment securities: $8.3B, or 53% of deposits, at 9/30/23 Deposits • Deposits of $15.7B at 9/30/23, +1% QoQ, driven by +3% QoQ growth in customer deposits, partially offset by planned reduction of brokered time deposits • Gross loan-to-deposit ratio: 91% at 9/30/23, vs. 95% at 6/30/23 Loans • Loans receivable of $14.3B at 9/30/23, -4% QoQ, reflected prudent approach to loan growth, intentional decrease in mortgage warehouse lending, and payoffs and paydowns in a high interest rate environment Asset Quality • Nonperforming assets (“NPA”) of $62MM at 9/30/23, -20% QoQ • NPAs represented 31bps of total assets at 9/30/23, an improvement from 38bps at 6/30/23 • 3Q23 net charge offs: $31MM, included idiosyncratic charge off of $23.4MM Earnings • 3Q23 net income: $30MM, or $0.25 per diluted share • 3Q23 net interest income: $135MM, +4% QoQ, driven by net interest margin expansion of +13 bps QoQ Q3 2023 Financial Overview Total Capital & TCE Ratio at 9/30/23 13.23% / 7.96% NPA/Total Assets at 9/30/23 0.31% Gross Loans at 9/30/23 $14.3B Total Deposits at 9/30/23 $15.7B 3 3Q23 Net Income & EPS $30.0MM / $0.25 1 TCE ratio is a non-GAAP financial measure. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measure is provided in the Appendix of this presentation.
Strong Capital Ratios 4 Common Equity Tier 1 Capital Ratio • All regulatory capital ratios increased QoQ. All regulatory capital ratios meaningfully above requirements for “well-capitalized” financial institutions • 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 result 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 6.33% at 9/30/23 • No stock buybacks during 3Q23 • Equity: Book value per common share of $16.92 & TCE per share1 of $13.01 at 9/30/23. Equity declined -2% QoQ, largely due to a negative change in accumulated other comprehensive income (“AOCI”) Tangible Common Equity Ratio1 Total Capital Ratio Leverage Ratio Well Capitalized 6.50% Well Capitalized 10.00% Well Capitalized 5.00% 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 of this presentation. * Proforma ratios at 9/30/23 are non-GAAP financial measures and reflect (a) inclusion of on- and off-balance sheet 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 AOCI; and (c) removal of the AOCI opt-out in calculating regulatory capital.
Strong Balance Sheet & Ample Liquidity Position 5 • Cash and cash equivalents increased to $2.5B at 9/30/23, up from $2.3B at 6/30/23 • Available borrowing capacity, cash and cash equivalents, and unpledged investment securities of $8.3B at 9/30/23, equivalent to 53% of total deposits, up from $7.7B and 50%, respectively, at 6/30/23 • Investment securities of $2.3B on balance sheet at 9/30/23, represented 11% of total assets. Effective duration of 4.7 at 9/30/23. Predominantly debt securities AFS. Primarily fixed-rate portfolio • Bank Term Funding Program: $1.7B outstanding at 9/30/23, with a weighted average rate of 4.47%. Positive carry and contribution to net interest income At September 30, 2023 ($ in millions) Amortized Cost Fair Value Net Unrealized Loss AFS (on balance sheet @ fair value) $ 2,379 $ 1,994 $ (385) HTM (on balance sheet @ amortized cost) $ 267 $ 240 $ (27) Total Investment Securities Portfolio $ 2,646 $ 2,234 $ (412) Unpledged Securities $0.3 Bn FHLB Capacity $4.4 Bn FRB Capacity $0.8 Bn Fed Fund Lines at Other Banks $0.3 Bn Cash and Cash Equivalents $2.5 Bn $8.3B Available Borrowing Capacity, Cash & Cash Equivalents, and Unpledged Investment Securities (at 9/30/23) Investment Securities Portfolio
Diverse & Granular Deposit Base 6 Noninterest Bearing Demand Deposits 27% Money Market and Interest Bearing Demand 28% Savings Deposits 3% Time Deposits 42% $15.7B Total Deposits (at 9/30/23) Consumer 35% Commercial & Wholesale 65% • Average commercial deposit account size: approx. $300,000 • Average consumer deposit account size: approx. $50,000 • Uninsured deposit ratio was 37% of the Bank’s total deposits at 9/30/23 • Total deposits of $15.7B at 9/30/23, +1% QoQ • QoQ deposit growth reflects +3% QoQ growth in customer deposits, partially offset by a $368MM planned reduction of brokered time deposits Deposit Composition by Product Type Deposit Composition by Customer Type $15.7B Total Deposits (at 9/30/23)
Well-Balanced Loan Portfolio 7 • Loan portfolio well-diversified across major loan types of nonowner-occupied CRE, C&I, owner-occupied CRE, multifamily residential (“MFR”), and residential mortgage • Total loans receivable: $14.3B at 9/30/23, -4% QoQ, reflected prudent approach to loan growth, intentional decrease of mortgage warehouse lending, and impact of payoffs & paydowns in a high interest rate environment • Aggregate payoffs and paydowns of $576MM in 3Q23, exceeded new production volume of $329MM in 3Q23 Nonowner- Occupied CRE 33% Owner-Occupied CRE 21% C&I 31% Residential Mortgage & Other 6% Multifamily Residential 9% $14.3B Loans Receivable (at 9/30/23) $0.9B Avg Size: $0.6MM $4.8B Avg Size: $2.3MM $3.0B Avg Size: $1.5MM $4.4B Avg Size: $1.6MM $1.2B Avg Size: $2.3MM
As a % of Total Loans: Avg Loan Size: Weighted Avg LTV1: 12% Multi-tenant Retail $1,745MM $2.3MM 42.7% 9% Industrial & Warehouse $1,255MM $2.2MM 40.0% 9% Multifamily $1,235MM $2.3MM 54.7% 7% Gas Station & Car Wash $1,038MM $1.7MM 47.4% 6% Hotel/Motel $827MM $2.0MM 45.8% 6% Mixed Use $813MM $1.8MM 43.2% 5% Single-tenant Retail $672MM $1.3MM 46.1% 3% Office $455MM $2.4MM 50.0% 7% All Other $933MM $1.5MM 37.9% Diversified CRE Portfolio with Low LTVs Total CRE: Distribution by LTV (ex. SBA) < 50%: 58% > 50% - 55%: 14% > 55% - 60%: 10% > 60% - 65%: 7% > 65% - 70%: 5% > 70%: 6%$9.0B CRE Portfolio (at 9/30/23) 45.0% Weighted Avg LTV1 1 Weighted average loan-to-value (“LTV”): current loan balance divided by updated collateral value. Collateral value updates most recent available appraisal by using CoStar market and property-specific data, including submarket appreciation or depreciation, and changes to vacancy, debt service coverage or rent/sq foot. LTVs disclosed prior to 2Q23 were based on starting point values. Calculations exclude Small Business Administration (“SBA”) loans. • Total CRE loans of $9.0B at 9/30/23, -2% QoQ. Portfolio consists of $4.8B of nonowner-occupied CRE, $1.2B of MFR, and $3.0B of owner-occupied CRE • CRE Office: represented only 3% of total loans at 9/30/23, with no central business district exposure 8 $9.0B CRE Portfolio (at 9/30/23)
LA Fashion District Gateway Cities San Gabriel Valley South Bay LA Koreatown Other LA County (No exposure to downtown commercial business district) Orange County San Bernardino County Riverside County Other SoCal San Francisco, $40 Greater SF Bay Area Other NorCal Manhattan Queens County Kings County Other New York New Jersey Texas Washington Illinois Other States Granular CRE Portfolio, Diversified by Submarket 9 CRE Portfolio by Geographic Submarket ($ Millions) Loan Size (at 9/30/23) Balance ($ Millions) # of Loans Average Loan Size ($ Millions) Weighted Average LTV 1 > $30MM $ 292 7 $ 41.7 59.7% $20MM - $30MM $ 640 26 $ 24.6 45.0% $10MM - $20MM $ 1,263 92 $ 13.7 48.6% $5MM - $10MM $ 1,734 256 $ 6.8 47.2% $2MM - $5MM $ 2,582 835 $ 3.1 44.7% < $2MM $ 2,462 3,408 $ 0.7 39.7% Total CRE Portfolio $ 8,973 4,624 $ 1.9 45.0% • LTV ratios are consistently low across segments by size and by property type • Vast majority of CRE loans have full recourse and personal guarantees • 99% of total CRE portfolio was pass-graded at 9/30/23 CRE Portfolio by Size Segment 1 Weighted average LTV: current loan balance divided by updated collateral value. Collateral value updates most recent available appraisal by using CoStar market and property-specific data, including submarket appreciation or depreciation, and changes to vacancy, debt service coverage or rent/sq foot. LTVs disclosed prior to 2Q23 were based on starting point values. Calculations exclude SBA. $9.0B CRE Portfolio (at 9/30/23) SoCal NorCal NY/NJ Texas Washington Illinois Other States $331
Net Interest Income & Net Interest Margin 10 • 3Q23 net interest income of $135MM, +4% QoQ • 3Q23 average earning assets of $19.0B, -2% QoQ, primarily driven by reduction in loans • 3Q23 average borrowings and debt of $1.9B, -20% QoQ. QoQ deposit growth and reduction in loans reduced need for borrowings in 3Q23 Net Interest Income & Net Interest Margin ($ Millions) $153 $151 $134 $131 $135 3.49% 3.36% 3.02% 2.70% 2.83% 3Q22 4Q22 1Q23 2Q23 3Q23 2.83% 2.70% Loan yield expansion +22bps 3Q23 NIM change: +13 bps QoQ Net Interest Income Net Interest Margin (annualized) Increase Decrease Total QoQ change +4% -2% -11% -2% QoQ Change in Net Interest Margin (“NIM”) 2Q23 3Q23 -10bps • 3Q23 NIM of 2.83%, +13bps QoQ • Positive impact from expanding earning asset yields (+26 bps), reduction in average borrowings & debt (+9 bps) and growth in average interest earning cash & equivalents (+2 bps), partially offset by -10 bps from a reduction in average loan balances and -14 bps from a higher cost of interest bearing deposits Increase in avg int-earn cash & equivalents +9bps Higher cost of interest bearing deposits +2bps Other earning assets yield expansion -14bps Reduction in avg borrowings & debt +4bps Reduction in avg loans
0.79% 1.62% 2.37% 2.79% 2.98% 1.25% 2.41% 3.36% 3.87% 4.10% 2.35% 3.82% 4.69% 5.16% 5.43% 3Q22 4Q22 1Q23 2Q23 3Q23 Total COD (annualized) Cost of IB Deposits (annualized) Avg Fed Funds Rate Average Loans & Deposits, Yields & Rates 11 Average Deposits Average Loans Receivable ($ Billions) ($ Billions) $14.9 $15.4 $15.2 $15.1 $14.6 12.25 12.75 13.25 13.75 14.25 14.75 15.25 15.75 3Q22 4Q22 1Q23 2Q23 3Q23 9.7 10.3 11.1 11.4 11.4 5.7 5.2 4.7 4.4 4.3 3Q22 4Q22 1Q23 2Q23 3Q23 Avg Interest Bearing ("IB") Deposits Avg Non IB Deposits 4.65% 5.36% 5.75% 5.99% 6.27% 2.35% 3.82% 4.69% 5.16% 5.43% 3Q22 4Q22 1Q23 2Q23 3Q23 Avg Loan Yield (annualized) Avg Fed Funds Rate Average Loan-to-Deposit Ratio 97% 99% 96% 96% 93% Average Cost of Deposits (“COD”) Relative to Fed Funds Average Loan Yield Relative to Fed Funds $15.8$15.5$15.4 $15.7$15.8
2.6 2.1 2.2 2.3 2.4 8.0 7.8 6.5 6.9 5.8 2.8 2.3 2.3 2.0 0.1 5.8 3Q22 4Q22 1Q23 2Q23 3Q23 Gain from Investment in Affordable Housing Net Gains on Loan Sales Other Income and Fees Service Fees on Deposit Accounts Noninterest Income 12 Noninterest Income ($ Millions) 1 Net gains on loan sales comprise of net gains on sales of SBA and residential mortgage loans. 1 $17.0 $8.3 $13.4 $12.1 $11.0 • 3Q23 noninterest income of $8MM, vs. $17MM in 2Q23 – 2Q23 included a one-time $6MM cash distribution from an investment in an affordable housing partnership, which did not reoccur in 3Q23 – No SBA loan sale gains in 3Q23: retained SBA 7(a) loan production on balance sheet. In 2Q23, sold $38MM for a gain of $2MM • Excluding the one-time gain and net gains on SBA loan sales from 2Q23 noninterest income, 3Q23 noninterest income decreased $1MM QoQ
53.2 52.7 57.2 52.3 51.0 11.6 12.1 12.6 12.4 12.8 1.6 1.6 1.8 4.7 3.7 17.5 18.1 18.8 17.9 19.4 3Q22 4Q22 1Q23 2Q23 3Q23 Salary and employee benefits Occupancy and FF&E FDIC Assessment All Other Expenses Efficiency Ratio & Noninterest Expense to Average Assets 50.4% 52.0% 62.4% 59.1% 60.5% 1.82% 1.79% 1.89% 1.71% 1.73% 3Q22 4Q22 1Q23 2Q23 3Q23 Efficiency Ratio Noninterest Expense/Avg Assets (annualized) Noninterest Expense & Efficiency 13 $87.3 $86.9 $83.9 $84.5 $90.4 Noninterest Expense ($ Millions) • 3Q23 noninterest expense of $87MM, -1% QoQ • 3Q23 salaries and employee benefits expense of $51MM, -2% QoQ • 3Q23 efficiency ratio of 60.5%, vs. 59.1% for 2Q23. QoQ change reflects decrease in noninterest income from one-time gain that did not reoccur
$161 $162 $164 $173 $159 1.04% 1.05% 1.09% 1.16% 1.11% 3Q22 4Q22 1Q23 2Q23 3Q23 ACL ACL Coverage Ratio • Nonperforming assets (“NPA”) of $62MM at 9/30/23, -20% QoQ • NPA ratio improved to 31bps of total assets, -7bps QoQ • Net charge offs (“NCO”) of $31MM in 3Q23, included idiosyncratic charge off of $23.4MM to borrower that entered Chapter 7 liquidation in Aug 2023. Related to this credit, Company recorded impairment reserves of $9.6MM at 6/30/23 • ACL totaled $159MM at 9/30/23. Coverage ratio: 1.11% of loans receivable at 9/30/23, compared with 1.16% at 6/30/23. Excluding impairment reserves related to the idiosyncratic charge off, coverage ratio was 1.10% at 6/30/23 • Total criticized loans were $361MM at 9/30/23, vs. $345MM at 6/30/23. Decrease in special mention loans and increase in substandard loans Asset Quality Metrics 14 Provision for Credit Losses & Net Charge Offs (Recoveries) Nonperforming Assets RatioAllowance for Credit Losses & Coverage Ratio Criticized Loans Ratio $9.2 $8.2 $1.7 $8.9 $16.8 $0.2 $6.4 $0.1 -$0.6 $31.0 0.01% 0.17% 0.00% (0.01)% 0.85% 3Q22 4Q22 1Q23 2Q23 3Q23 Provision for Credit Losses NCO (Recoveries) NCO (Recovery) Ratio (annualized) 1.83% 1.70% 2.02% 2.32% 2.52% 3Q22 4Q22 1Q23 2Q23 3Q23 Total Criticized Loans as a % of Total Loans ($ Millions) ($ Millions, except ratios) 0.51% 0.36% 0.39% 0.38% 0.31% 3Q22 4Q22 1Q23 2Q23 3Q23 NPAs/Total Assets
Strategic Reorganization 15 Realignment Around Lines of Business and Products, to Better Serve Client Base & Run Bank More Efficiently Immediate Actions Planned Near- term Actions ▪ Optimized production capacity ▪ Streamlined back-office operations ▪ Reduced workforce ▪ Consistency in delivery of excellent client service ▪ Empowered deposit growth engines and enhanced revenue generation ▪ More efficient allocation of resources and minimized redundancies ▪ Sustainably expanded profitability ▪ Branch rationalization, subject to customary notices & approvals ▪ Wind down of non-core businesses ▪ Expected operational process improvements > $40MM ~ $12MM Estimated Annualized Cost Savings Anticipated One-Time Charges in 4Q23 RETAIL BANKING COMMERCIAL BANKING CORPORATE & INSTITUTIONAL BANKING FEE-BASED BUSINESS GROUP Consolidation under one leader to foster consistency of client experience, standardize processes, and improve efficiency Newly separated from commercial banking to oversee all retail banking activities, mortgage, branch network Expansion and deepening of total banking relationships and corporate deposit opportunities Partner with all Business Groups to drive growth in operating deposit accounts, accelerate fee-based revenue, and expand customer wallet share Focus: treasury management solutions, FX and interest rate risk management Focus: middle-market, corporate & institutional banking, specialized industries Focus: Korean subsidiary, traditional commercial, business banking, SBA and CRE Focus: consumer deposits, residential mortgage, and community investment Four Distinct Business Groups: Expected Benefits
Appendix 16
Summary Income Statement 17 ($ in thousands, except per share and share data) 3Q23 2Q23 QoQ % change 9/30/2022 YoY % change Net interest income before provision for credit losses $ 135,378 $ 130,689 4 % $ 153,186 (12)% Provision for credit losses 16,800 8,900 89 % 9,200 83 % Net interest income after provision for credit losses 118,578 121,789 (3)% 143,986 (18)% Total noninterest income 8,305 17,014 (51)% 13,355 (38)% Total noninterest expense 86,873 87,333 (1)% 83,914 4 % Income before income taxes 40,010 51,470 (22)% 73,427 (46)% Income tax provision 9,961 13,448 (26)% 19,679 (49)% Net income $ 30,049 $ 38,022 (21)% $ 53,748 (44)% Earnings Per Common Share - Diluted $0.25 $0.32 $0.45 Weighted Average Shares Outstanding - Diluted 120,374,618 120,129,359 119,996,523
Summary Balance Sheet 18 ($ in thousands, except per share data) 9/30/2023 6/30/2023 QoQ % change 9/30/2022 YoY % change Cash and due from banks $ 2,500,323 $ 2,302,339 9 % $ 331,336 655 % Investment securities 2,260,837 2,186,346 3 % 2,264,533 — % Federal Home Loan Bank (“FHLB”) stock and other investments 60,433 60,213 — % 65,192 (7)% Loans held for sale, at the lower of cost or fair value 19,502 49,246 (60)% 41,989 (54) % Loans receivable 14,306,193 14,864,810 (4)% 15,491,187 (8)% Allowance for credit losses (158,809) (172,996) (8)% (160,561) (1)% Net loans receivable 14,147,384 14,691,814 (4)% 15,330,626 (8)% Goodwill 464,450 464,450 — % 464,450 — % Other assets 623,435 611,730 2 % 585,262 (7)% Total assets $ 20,076,364 $ 20,366,138 (1)% $ 19,083,388 5 % Deposits $ 15,739,859 $ 15,619,352 1 % $ 15,502,209 2 % FHLB and Federal Reserve Bank borrowings 1,795,726 2,260,000 (21)% 1,072,000 68 % Other liabilities 510,355 418,788 22 % 533,454 (4)% Total liabilities $ 18,045,940 $ 18,298,140 (1)% $ 17,107,663 5 % Total stockholders’ equity 2,030,424 2,067,998 (2)% 1,975,725 3 % Book value per share $16.92 $17.23 (2)% $16.54 2 % Tangible book value per share1 $13.01 $13.32 (2)% $12.60 3 % Tangible common equity ratio1 7.96% 8.04% 8.09% Loans to deposits ratio 91.0% 95.5% 100.2% 1 TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix on the following slide.
($ in thousands, except per share info) 3Q22 2Q23 3Q23 Total stockholders’ equity $ 1,975,725 $ 2,067,998 $ 2,030,424 Less: Goodwill and core deposit intangible assets, net (470,662) (469,280) (468,832) TCE $ 1,505,063 $ 1,598,718 $ 1,561,592 Total assets $ 19,083,388 $ 20,366,138 $ 20,076,364 Less: Goodwill and core deposit intangible assets, net (470,662) (469,280) (468,832) Tangible assets $ 18,612,726 $ 19,896,858 $ 19,607,532 TCE Ratio 8.09% 8.04% 7.96% Common shares outstanding 119,479,253 120,014,888 120,026,220 TCE per share $ 12.60 $ 13.32 $ 13.01 Appendix: Non-GAAP Financials Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below. Tangible Common Equity (TCE) 19 ($ in thousands) 3Q22 2Q23 3Q23 Average stockholders’ equity $ 2,032,362 $ 2,072,859 $ 2,079,092 Less: Average goodwill and core deposit intangible assets, net (470,941) (469,515) (469,079) Average TCE $ 1,561,421 $ 1,603,344 $ 1,610,013 Net income $ 53,748 $ 38,022 $ 30,049 ROTCE (annualized) 13.77% 9.49% 7.47% Return on Average Tangible Common Equity (ROTCE)
News Release
HOPE BANCORP DECLARES QUARTERLY CASH DIVIDEND OF $0.14 PER SHARE
LOS ANGELES - October 23, 2023 - Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE) today announced that its Board of Directors declared a quarterly cash dividend of $0.14 per common share. The dividend is payable on or about November 16, 2023 to all stockholders of record as of the close of business on November 2, 2023.
Investor Conference Call
The Company previously announced that it will host an investor conference call on Monday, October 23, 2023 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review unaudited financial results for its third quarter ended September 30, 2023. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through October 30, 2023, replay access code 5386919.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the first and only super regional Korean American bank in the United States with $20.08 billion in total assets as of September 30, 2023. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 54 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama, and Georgia. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, New York City, Northern California and Houston; commercial loan production offices in Northern California, Seattle and Tampa, Fla.; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate lending, commercial and industrial lending, SBA lending, and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.
Contacts:
Julianna Balicka Angie Yang
EVP & Chief Financial Officer SVP, Director of Investor Relations & Corporate Communications
213-235-3235 213-251-2219
julianna.balicka@bankofhope.com angie.yang@bankofhope.com
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| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
| Name: |
dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
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