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Hope Bancorp Reports 2020 Third Quarter Financial Results

·42-min read

LOS ANGELES--(BUSINESS WIRE)--Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its three and nine-month periods ended September 30, 2020.

“We continue to manage our business well in this most challenging operating environment as evidenced by the many positive trends in our 2020 third quarter”

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For the three months ended September 30, 2020, net income totaled $30.5 million, or $0.25 per diluted common share, compared with $26.8 million, or $0.22 per diluted common share for the 2020 second quarter. In the year-ago third quarter, net income totaled $42.6 million, or $0.34 per diluted common share.

“We continue to manage our business well in this most challenging operating environment as evidenced by the many positive trends in our 2020 third quarter,” said Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc. “The continued success we are having in reducing our deposit costs resulted in a 7% quarter-over-quarter increase in net interest income and a 12 basis point expansion in our net interest margin. Contributing to a 23 basis point reduction in our cost of deposits, noninterest bearing demand deposits increased 11% quarter-over-quarter and accounted for 32% of total deposits at quarter end. We also made significant progress during the quarter redeploying the excess liquidity that was built up as a precautionary measure in light of COVID-19. Altogether with our cost containment efforts, we saw improvement in our efficiency ratio.

“Asset quality remains top of mind as we continue to help our borrowers manage through the impact of the pandemic. Overall, credit trends remain stable with meaningful reductions in nonaccrual loans and restructured loans. Underscoring the protracted impact COVID-19 is having on the economy, we further increased our allowance for credit losses to 1.37% of total loans at September 30, 2020 from 1.26% at June 30, 2020. We believe we are taking appropriate mitigating actions for the current environment and remain confident in our ability to continue supporting our customers and communities while delivering solid financial performance for our shareholders.”

Q3 2020 Highlights

  • Net interest income before provision for credit losses increased 7% to $117.6 million from Q2 2020, largely benefiting from meaningful reductions in interest expense due to lower cost of deposits.

  • Net interest margin expanded 12 basis points quarter-over-quarter benefiting from continued reduction in deposit costs and redeployment of excess liquidity.

  • Noninterest bearing deposits increased 11% by $452 million quarter-over-quarter and accounted for 32% of total deposits at quarter end.

  • Favorable mix-shift to lower-cost core deposits continued and total deposit costs decreased 23 basis points quarter-over-quarter.

  • Loan originations of $782 million included $301 million in utilization of new warehouse mortgage lines and contributed to a 2% increase in loans receivable quarter-over-quarter, or 8% annualized.

  • Noninterest expenses were well contained, and efficiency ratio improved to 54.31% from 55.37% in Q2 2020.

  • ROA and ROTCE improved to 0.72% and 7.80%, respectively, from 0.64% and 6.94% in Q2 2020.

  • Nonperforming loans decreased 16% quarter-over-quarter to $106.2 million, or 0.81% of loans receivable.

  • Allowance for credit losses increased to 1.37% of loans receivable at September 30, 2020 from 1.26% at June 30, 2020.

Financial Highlights

(dollars in thousands, except per share data) (unaudited)

At or for the Three Months Ended

9/30/2020

6/30/2020

9/30/2019

Net income

$

30,490

$

26,753

$

42,592

Diluted earnings per share

$

0.25

$

0.22

$

0.34

Net interest income before provision for credit losses

$

117,637

$

109,814

$

116,258

Net interest margin

2.91

%

2.79

%

3.25

%

Noninterest income

$

17,513

$

11,240

$

12,995

Noninterest expense

$

73,406

$

67,030

$

69,995

Net loans receivable

$

12,940,376

$

12,710,063

$

12,010,800

Deposits

$

14,008,356

$

14,123,532

$

12,234,750

Total cost of deposits

0.64

%

0.87

%

1.62

%

Nonaccrual loans (1) (2)

$

69,205

$

82,137

$

42,235

Nonperforming loans to loans receivable (1) (2)

0.81

%

0.98

%

0.64

%

ACL to loans receivable (3)

1.37

%

1.26

%

0.78

%

ACL to nonaccrual loans (1) (2) (3)

259.88

%

196.95

%

222.28

%

ACL to nonperforming assets (1) (2) (3)

144.36

%

109.62

%

97.06

%

Provision for credit losses

$

22,000

$

17,500

$

2,100

Net charge offs

$

3,922

$

652

$

1,822

Return on average assets (“ROA”)

0.72

%

0.64

%

1.12

%

Return on average equity (“ROE”)

5.98

%

5.31

%

8.47

%

Return on average tangible common equity (“ROTCE”) (4)

7.80

%

6.94

%

11.11

%

Noninterest expense / average assets

1.73

%

1.60

%

1.85

%

Efficiency ratio

54.31

%

55.37

%

54.15

%

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation.

(2)

Excludes purchased credit impaired (“PCI”) loans for September 30, 2019.

(3)

Allowance for credit losses for current-year periods were calculated under the CECL methodology while allowance for loan losses for the prior-year period was calculated under the incurred loss methodology.

(4)

Return on average tangible common equity is a non-GAAP financial measure. A reconciliation of the Company’s return on average tangible common equity is provided in the accompanying financial information on Table Page 10.

Operating Results for the 2020 Third Quarter

Net interest income before provision for credit losses for the 2020 third quarter increased 7% to $117.6 million from $109.8 million in the 2020 second quarter and increased 1% from $116.3 million in the 2019 third quarter. The Company attributed the increases to significant reductions in interest expense predominantly as a result of meaningful decreases in its total cost of deposits each period over the past four quarters. In addition, the Company reduced its FHLB borrowings by $300 million, or 60%, during the 2020 third quarter as part of an initiative to deploy excess liquidity built up in the early stages of the COVID-19 pandemic, which further reduced interest expense.

The net interest margin for the 2020 third quarter increased 12 basis points to 2.91% from 2.79% in the preceding second quarter. The primary factor contributing to the margin expansion was a 23 basis point reduction in total cost of deposits, which benefited net interest margin by approximately 15 basis points in the 2020 third quarter. The net interest margin for the 2019 third quarter was 3.25%.

The weighted average yield on loans for the 2020 third quarter was generally stable, decreasing 3 basis points to 4.20% from 4.23% in the 2020 second quarter. In the year-ago third quarter, the weighted average yield on loans was 5.27%.

The weighted average cost of deposits for the 2020 third quarter decreased 23 basis points to 0.64% from 0.87% for the 2020 second quarter and decreased 98 basis points from 1.62% for the year-ago third quarter. The significant improvements in the weighted average cost of deposits reflects in part the Company’s ongoing success with its initiative to enhance its deposit mix to favor lower-cost core deposits, as well as strategic reductions in the offering rates on its interest bearing deposit accounts over the past four quarters.

Noninterest income for the 2020 third quarter increased 56% to $17.5 million from $11.2 million for the preceding second quarter and $13.0 million for the 2019 third quarter. The largest factor contributing to the increase was a $7.5 million net gain on the sale of $161 million of available-for-sale investment securities. This compares with zero in the 2020 second quarter and $153,000 in the 2019 third quarter. In addition, net gains on sales of other loans from sales of new residential mortgage originations increased to $2.9 million in the 2020 third quarter from $1.7 million in the preceding second quarter and $804,000 in the 2019 third quarter. These increases were partially offset by a reduction in other income and fees, which amounted to $1.7 million in the 2020 third quarter, compared with $4.4 million in the 2020 second quarter, largely reflecting a fair value change in derivatives as well as lower swap fee income. In the 2019 third quarter, other income and fees amounted to $4.9 million.

Noninterest expense for the 2020 third quarter totaled $73.4 million, compared with $67.0 million for the preceding second quarter and $70.0 million for the 2019 third quarter. During the 2020 third quarter, the Company incurred a $3.6 million prepayment penalty related to the early payoff of $300 million in FHLB borrowings discussed above. There were no such fees in the preceding second quarter or 2019 third quarter.

Salaries and employee benefits expense totaled $40.7 million, $38.9 million and $41.6 million for the 2020 third quarter, 2020 second quarter and 2019 third quarter. As disclosed last quarter, PPP loan origination costs of $5.2 million were deferred in the 2020 second quarter and materially reduced compensation expense for that quarter alone. Excluding the impact of the PPP loan origination costs in the 2020 second quarter, salaries and employee benefits expense declined quarter-over-quarter, as the 4% workforce reduction at the beginning of the third quarter reduced base salary and benefits expense by $1.6 million in the 2020 third quarter.

Noninterest expense as a percentage of average assets was 1.73% for the 2020 third quarter, 1.60% for the 2020 second quarter and 1.85% for the 2019 third quarter. Excluding the FHLB prepayment penalty, noninterest expense as a percentage of average assets for the 2020 third quarter was 1.64%.

The effective tax rate for the 2020 third quarter was 23.3%, compared with 26.8% for the preceding second quarter and 25.5% in the year-ago third quarter. The decrease in the effective tax rate for 2020 third quarter reflects projected annual income for 2020.

Balance Sheet Summary

New loan originations funded during the 2020 third quarter totaled $782.4 million and included non-PPP traditional SBA loan production of $48.2 million and residential mortgage loan originations of $102.3 million. In addition, four new warehouse mortgage lines of credit aggregating $500 million were booked during the 2020 third quarter, of which $301 million was funded as of September 30, 2020 and included in new loan originations for the 2020 third quarter. For the preceding 2020 second quarter, new loan originations funded totaled $832.0 million, including SBA PPP loan originations of $480.1 million, traditional SBA loan production of $5.9 million and residential mortgage loan originations of $72.3 million. In the year-ago third quarter, new loan originations funded totaled $693.9 million, including SBA loan production of $53.8 million and residential mortgage loan originations of $58.5 million. There were no new warehouse mortgage lines of credit established in the 2020 second quarter and 2019 third quarter.

At September 30, 2020, loans receivable increased 1.9% to $13.12 billion from $12.87 billion at June 30, 2020 and increased 8.4% from $12.10 billion at September 30, 2019.

Total deposits at September 30, 2020 decreased 0.8% quarter-over-quarter to $14.01 billion from $14.12 billion at June 30, 2020, reflecting a continuing positive shift in the mix of deposits. An increase of $452.1 million in noninterest bearing demand deposits during the 2020 third quarter and a decrease of $511.9 million in time deposits were the primary factors contributing to the quarter-over-quarter change in total deposits.

Following is the deposit composition as of September 30, 2020, June 30, 2020 and September 30, 2019:

(dollars in thousands) (unaudited)

9/30/2020

6/30/2020

% change

9/30/2019

% change

Noninterest bearing demand deposits

$

4,488,529

$

4,036,383

11

%

$

3,033,371

48

%

Money market and other

4,763,893

4,831,679

(1)

%

3,752,274

27

%

Saving deposits

308,943

296,614

4

%

259,454

19

%

Time deposits

4,446,991

4,958,856

(10)

%

5,189,651

(14)

%

Total deposit balances

$

14,008,356

$

14,123,532

(1)

%

$

12,234,750

14

%

Following is the deposit composition as a percentage of total deposits as of September 30, 2020, June 30, 2020 and September 30, 2019 and a breakdown of cost of deposits for the quarters ended September 30, 2020, June 30, 2020 and September 30, 2019:

Deposit Breakdown

Cost of Deposits

(dollars in thousands) (unaudited)

9/30/2020

6/30/2020

9/30/2019

Q3 2020

Q2 2020

Q3 2019

Noninterest bearing demand deposits

32.1

%

28.6

%

24.8

%

%

%

%

Money market and other

34.0

%

34.2

%

30.7

%

0.53

%

0.62

%

1.82

%

Saving deposits

2.2

%

2.1

%

2.1

%

1.19

%

1.22

%

1.06

%

Time deposits

31.7

%

35.1

%

42.4

%

1.30

%

1.71

%

2.41

%

Total deposit balances

100.0

%

100.0

%

100.0

%

0.64

%

0.87

%

1.62

%

At September 30, 2020, cash and due from banks totaled $629.1 million, a 57% reduction from $1.47 billion at June 30, 2020. During the 2020 third quarter, the Company made significant progress in redeploying excess liquidity on its balance sheet, which included an early payoff of $300 million in Federal Home Loan Borrowings, which had the positive effect of increasing net interest income by $503,000 and enhancing net interest margin by approximately 3.5 basis points in the 2020 third quarter. Other excess liquidity redeployment initiatives included further reduction of higher-cost time deposits and funding new loan growth for the quarter.

Allowance for Credit Losses

The 2020 third quarter provision for credit losses under the CECL methodology was $22.0 million, compared with $17.5 million for the preceding second quarter. This compares with a provision for loan losses under the prior incurred loss methodology of $2.1 million for the 2019 third quarter.

The provision for credit losses for the 2020 third quarter reflects updated macroeconomic variables incorporating the Moody’s Analytics Baseline scenario published September 2020, updated qualitative factors in the Company’s ACL methodology, relatively stable asset quality metrics and a low level of credit losses, as well as additional management overlays related to COVID-19 modifications and the recognition of risk from granting longer term modifications .

Following is the Allowance for Credit Losses as of September 30, 2020, June 30, 2020 and September 30, 2019:

(dollars in thousands) (unaudited)

9/30/2020

6/30/2020

9/30/2019

Allowance for credit losses

$

179,849

$

161,771

$

93,882

Allowance for credit loss/loans receivable

1.37%

1.26%

0.78%

Allowance for credit losses/nonperforming loans

169.40%

127.79%

121.37%

Credit Quality

Following are the components of nonperforming assets as of September 30, 2020, June 30, 2020 and September 30, 2019:

(dollars in thousands) (unaudited)

9/30/2020

6/30/2020

9/30/2019

Loans on nonaccrual status (1)

$

69,205

$

82,137

$

42,235

Delinquent loans 90 days or more on accrual status (2)

1,537

430

398

Accruing troubled debt restructured loans

35,429

44,026

34,717

Total nonperforming loans

106,171

126,593

77,350

Other real estate owned

18,410

20,983

19,374

Total nonperforming assets

$

124,581

$

147,576

$

96,724

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $26.2 million, $30.3 million and $37.3 million, at September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

(2)

Excludes PCI loans totaling $15.5 million at September 30, 2019.

Following are the components of criticized loan balances as of September 30, 2020, June 30, 2020 and September 30, 2019:

(dollars in thousands) (unaudited)

9/30/2020

6/30/2020

9/30/2019

Special Mention

$

153,388

$

127,149

$

139,848

Classified

318,542

299,368

268,622

Criticized

$

471,930

$

426,517

$

408,470

During the 2020 third quarter, net charge offs totaled $3.9 million, or 0.12% of average loans receivable on an annualized basis. This compares with net charge offs of $652,000, or 0.02% of average loans receivable on an annualized basis for the 2020 second quarter and net charge offs for the 2019 third quarter of $1.8 million, or 0.06% of average loans receivable on an annualized basis.

Capital

At September 30, 2020, the Company and the Bank continued to exceed all regulatory capital requirements to be classified as a “well-capitalized” financial institution. Following are capital ratios for the Company as of September 30, 2020, June 30, 2020 and September 30, 2019:

Hope Bancorp, Inc. (unaudited)

9/30/2020

6/30/2020

9/30/2019

Minimum Guideline
for “Well-Capitalized”
Bank

Common Equity Tier 1 Capital

11.36%

11.50%

11.89%

6.50%

Tier 1 Leverage Ratio

10.02%

10.08%

11.18%

5.00%

Tier 1 Risk-Based Ratio

12.09%

12.24%

12.65%

8.00%

Total Risk-Based Ratio

13.19%

13.23%

13.38%

10.00%

Following are tangible common equity (“TCE”) per share and TCE as a percentage of tangible assets as of September 30, 2020, June 30, 2020 and September 30, 2019:

(unaudited)

9/30/2020

6/30/2020

9/30/2019

Tangible common equity per share (1)

$12.70

$12.62

$12.27

Tangible common equity to tangible assets (2)

9.63%

9.32%

10.43%

(1)

Tangible common equity represents common equity less goodwill and net other intangible assets. Tangible common equity per share represents tangible common equity divided by the number of shares issued and outstanding. Both tangible common equity and tangible common equity per share are non-GAAP financial measures. A reconciliation of the Company’s total stockholders’ equity to tangible common equity is provided in the accompanying financial information on Table Page 10.

(2)

Tangible assets represent total assets less goodwill and net other intangible assets. Tangible common equity to tangible assets is the ratio of tangible common equity over tangible assets. Tangible common equity to tangible assets is a non-GAAP financial measure. A reconciliation of the Company’s total assets to tangible assets is 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 Wednesday, October 21, 2020 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its third quarter ended September 30, 2020. 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 in 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 28, 2020, replay access code 10148641.

About Hope Bancorp, Inc.

Hope Bancorp, Inc. is the holding company of Bank of Hope, the first and only super regional Korean-American bank in the United States with $16.7 billion in total assets as of September 30, 2020. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 58 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; 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 and commercial 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 press 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 and statements regarding our business strategies, objectives and vision. 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 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 and Quarterly Report on Form 10-Q. 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.

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

Assets:

9/30/2020

6/30/2020

% change

12/31/2019

% change

9/30/2019

% change

Cash and due from banks

$

629,133

$

1,468,949

(57

)

%

$

698,567

(10

)

%

$

549,356

15

%

Securities available for sale, at fair value

2,060,991

1,887,604

9

%

1,715,987

20

%

1,772,322

16

%

Federal Home Loan Bank (“FHLB”) stock and other investments

97,305

98,357

(1

)

%

97,659

%

98,848

(2

)

%

Loans held for sale, at the lower of cost or fair value

9,170

11,350

(19

)

%

54,271

(83

)

%

29,627

(69

)

%

Loans receivable

13,120,225

12,871,834

2

%

12,276,007

7

%

12,104,682

8

%

Allowance for credit losses

(179,849

)

(161,771

)

11

%

(94,144

)

91

%

(93,882

)

92

%

Net loans receivable

12,940,376

12,710,063

2

%

12,181,863

6

%

12,010,800

8

%

Accrued interest receivable

57,989

52,859

10

%

30,772

88

%

29,743

95

%

Premises and equipment, net

49,552

51,029

(3

)

%

52,012

(5

)

%

52,604

(6

)

%

Bank owned life insurance

77,388

77,050

%

76,339

1

%

75,968

2

%

Goodwill

464,450

464,450

%

464,450

%

464,450

%

Servicing assets

13,718

14,164

(3

)

%

16,417

(16

)

%

17,865

(23

)

%

Other intangible assets, net

10,239

10,770

(5

)

%

11,833

(13

)

%

12,390

(17

)

%

Other assets

323,456

322,417

%

267,270

21

%

265,905

22

%

Total assets

$

16,733,767

$

17,169,062

(3

)

%

$

15,667,440

7

%

$

15,379,878

9

%

Liabilities:

Deposits

$

14,008,356

$

14,123,532

(1

)

%

$

12,527,364

12

%

$

12,234,750

14

%

FHLB advances

200,000

500,000

(60

)

%

625,000

(68

)

%

625,000

(68

)

%

Convertible notes, net

203,270

201,987

1

%

199,458

2

%

198,211

3

%

Subordinated debentures

103,889

103,602

%

103,035

1

%

102,755

1

%

Accrued interest payable

21,991

26,093

(16

)

%

33,810

(35

)

%

38,197

(42

)

%

Other liabilities

155,700

183,072

(15

)

%

142,762

9

%

149,681

4

%

Total liabilities

$

14,693,206

$

15,138,286

(3

)

%

$

13,631,429

8

%

$

13,348,594

10

%

Stockholders’ Equity:

Common stock, $0.001 par value

$

136

$

136

%

$

136

%

$

136

%

Capital surplus

1,432,773

1,430,757

%

1,428,066

%

1,426,666

%

Retained earnings

774,970

761,734

2

%

762,480

2

%

737,209

5

%

Treasury stock, at cost

(200,000

)

(200,000

)

%

(163,820

)

22

%

(150,000

)

33

%

Accumulated other comprehensive gain, net

32,682

38,149

(14

)

%

9,149

257

%

17,273

89

%

Total stockholders’ equity

2,040,561

2,030,776

%

2,036,011

%

2,031,284

%

Total liabilities and stockholders’ equity

$

16,733,767

$

17,169,062

(3

)

%

$

15,667,440

7

%

$

15,379,878

9

%

Common stock shares - authorized

150,000,000

150,000,000

150,000,000

150,000,000

Common stock shares - outstanding

123,260,760

123,239,276

125,756,543

126,697,925

Treasury stock shares

12,661,581

12,661,581

9,945,547

9,002,453

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

Three Months Ended

Nine Months Ended

9/30/2020

6/30/2020

% change

9/30/2019

% change

9/30/2020

9/30/2019

% change

Interest and fees on loans

$

134,430

$

134,190

%

$

158,115

(15

)

%

$

422,850

$

474,878

(11

)

%

Interest on securities

9,848

9,891

%

11,373

(13

)

%

30,348

35,558

(15

)

%

Interest on federal funds sold and other investments

942

980

(4

)

%

2,929

(68

)

%

3,951

8,577

(54

)

%

Total interest income

145,220

145,061

%

172,417

(16

)

%

457,149

519,013

(12

)

%

Interest on deposits

22,871

29,451

(22

)

%

49,057

(53

)

%

93,435

144,730

(35

)

%

Interest on other borrowings and convertible notes

4,712

5,796

(19

)

%

7,102

(34

)

%

16,972

21,196

(20

)

%

Total interest expense

27,583

35,247

(22

)

%

56,159

(51

)

%

110,407

165,926

(33

)

%

Net interest income before provision for credit losses

117,637

109,814

7

%

116,258

1

%

346,742

353,087

(2

)

%

Provision for credit losses

22,000

17,500

26

%

2,100

948

%

67,500

6,300

971

%

Net interest income after provision for credit losses

95,637

92,314

4

%

114,158

(16

)

%

279,242

346,787

(19

)

%

Service fees on deposit accounts

2,736

2,583

6

%

4,690

(42

)

%

9,452

13,423

(30

)

%

International service fees

987

667

48

%

1,193

(17

)

%

2,443

3,146

(22

)

%

Loan servicing fees, net

772

1,106

(30

)

%

189

308

%

2,243

1,656

35

%

Wire transfer fees

892

820

9

%

1,058

(16

)

%

2,710

3,458

(22

)

%

Net gains on sales of other loans

2,853

1,678

70

%

804

255

%

6,386

2,611

145

%

Net gains on sales of securities available for sale

7,531

100

%

153

4,822

%

7,531

282

2,571

%

Other income and fees

1,742

4,386

(60

)

%

4,908

(65

)

%

11,252

12,128

(7

)

%

Total noninterest income

17,513

11,240

56

%

12,995

35

%

42,017

36,704

14

%

Salaries and employee benefits

40,659

38,850

5

%

41,607

(2

)

%

122,011

121,333

1

%

Occupancy

7,264

7,043

3

%

7,703

(6

)

%

21,717

23,219

(6

)

%

Furniture and equipment

4,513

4,654

(3

)

%

3,851

17

%

13,426

11,323

19

%

Advertising and marketing

1,601

1,315

22

%

2,377

(33

)

%

4,589

6,684

(31

)

%

Data processing and communications

2,204

2,274

(3

)

%

2,821

(22

)

%

7,109

8,364

(15

)

%

Professional fees

1,513

1,510

%

5,241

(71

)

%

6,323

16,580

(62

)

%

FDIC assessment

1,167

1,652

(29

)

%

100

%

4,378

3,110

41

%

Credit related expenses

1,793

1,361

32

%

1,031

74

%

4,816

3,258

48

%

OREO expense (income), net

1,770

1,338

32

%

(743

)

N/A

3,951

(812

)

N/A

FHLB prepayment fee

3,584

100

%

100

%

3,584

100

%

Other

7,338

7,033

4

%

6,107

20

%

20,672

19,140

8

%

Total noninterest expense

73,406

67,030

10

%

69,995

5

%

212,576

212,199

%

Income before income taxes

39,744

36,524

9

%

57,158

(30

)

%

108,683

171,292

(37

)

%

Income tax provision

9,254

9,771

(5

)

%

14,566

(36

)

%

25,487

43,261

(41

)

%

Net income

$

30,490

$

26,753

14

%

$

42,592

(28

)

%

$

83,196

$

128,031

(35

)

%

Earnings Per Common Share:

Basic

$

0.25

$

0.22

$

0.34

$

0.67

$

1.01

Diluted

$

0.25

$

0.22

$

0.34

$

0.67

$

1.01

Weighted Average Shares Outstanding:

Basic

123,251,336

123,200,127

126,685,921

123,581,055

126,661,798

Diluted

123,536,765

123,430,891

127,007,469

123,895,084

126,895,970

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

For the Three Months Ended
(Annualized)

For the Nine Months Ended
(Annualized)

Profitability measures:

9/30/2020

6/30/2020

9/30/2019

9/30/2020

9/30/2019

ROA

0.72

%

0.64

%

1.12

%

0.68

%

1.12

%

ROE

5.98

%

5.31

%

8.47

%

5.47

%

8.69

%

ROTCE (1)

7.80

%

6.94

%

11.11

%

7.14

%

11.48

%

Net interest margin

2.91

%

2.79

%

3.25

%

2.99

%

3.31

%

Efficiency ratio

54.31

%

55.37

%

54.15

%

54.68

%

54.44

%

Noninterest expense / average assets

1.73

%

1.60

%

1.85

%

1.73

%

1.86

%

(1) Average tangible equity is calculated by subtracting average goodwill and average core deposit intangible assets from average stockholders’ equity. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position.

Three Months Ended

Nine Months Ended

Pre-tax acquisition accounting adjustments and merger-related expenses:

9/30/2020

6/30/2020

9/30/2019

9/30/2020

9/30/2019

Accretion on purchased non-impaired loans

$

747

$

658

$

2,046

$

2,464

$

6,011

Accretion on purchased credit deteriorated/purchased credit impaired loans

4,584

3,046

5,234

17,079

17,916

Amortization of premium on low income housing tax credits

(71)

(70)

(75)

(212)

(227)

Amortization of premium on acquired FHLB borrowings

1,280

Accretion of discount on acquired subordinated debt

(287)

(284)

(278)

(854)

(826)

Amortization of core deposit intangibles

(531)

(532)

(557)

(1,594)

(1,671)

Total acquisition accounting adjustments

$

4,442

$

2,818

$

6,370

$

16,883

$

22,483

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

9/30/2020

6/30/2020

9/30/2019

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

$

12,728,558

$

134,430

4.20

%

$

12,755,088

$

134,190

4.23

%

$

11,911,658

$

158,115

5.27

%

Securities available for sale

2,010,907

9,848

1.95

%

1,750,156

9,891

2.27

%

1,798,239

11,373

2.51

%

FHLB stock and other investments

1,342,641

942

0.28

%

1,317,049

980

0.30

%

482,952

2,929

2.41

%

Total interest earning assets

$

16,082,106

$

145,220

3.59

%

$

15,822,293

$

145,061

3.69

%

$

14,192,849

$

172,417

4.82

%

INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest bearing

$

4,895,101

$

6,546

0.53

%

$

4,903,786

$

7,563

0.62

%

$

3,450,749

$

15,802

1.82

%

Savings

302,882

907

1.19

%

284,050

862

1.22

%

252,780

675

1.06

%

Time deposits

4,703,640

15,418

1.30

%

4,954,446

21,026

1.71

%

5,368,753

32,580

2.41

%

Total interest bearing deposits

9,901,623

22,871

0.92

%

10,142,282

29,451

1.17

%

9,072,282

49,057

2.15

%

FHLB advances

353,587

1,323

1.49

%

593,407

2,238

1.52

%

632,500

3,112

1.95

%

Convertible notes, net

202,470

2,370

4.58

%

201,169

2,358

4.64

%

197,410

2,322

4.60

%

Subordinated debentures

99,819

1,019

3.99

%

99,534

1,200

4.77

%

98,690

1,668

6.61

%

Total interest bearing liabilities

$

10,557,499

$

27,583

1.04

%

$

11,036,392

$

35,247

1.28

%

$

10,000,882

$

56,159

2.23

%

Noninterest bearing demand deposits

4,239,108

3,510,783

2,958,233

Total funding liabilities/cost of funds

$

14,796,607

0.74

%

$

14,547,175

0.97

%

$

12,959,115

1.72

%

Net interest income/net interest spread

$

117,637

2.55

%

$

109,814

2.41

%

$

116,258

2.59

%

Net interest margin

2.91

%

2.79

%

3.25

%

Cost of deposits:

Noninterest bearing demand deposits

$

4,239,108

$

%

$

3,510,783

$

%

$

2,958,233

$

%

Interest bearing deposits

9,901,623

22,871

0.92

%

10,142,282

29,451

1.17

%

9,072,282

49,057

2.15

%

Total deposits

$

14,140,731

$

22,871

0.64

%

$

13,653,065

$

29,451

0.87

%

$

12,030,515

$

49,057

1.62

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Nine Months Ended

9/30/2020

9/30/2019

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

$

12,581,703

$

422,850

4.49

%

$

11,985,936

$

474,878

5.30

%

Securities available for sale

1,825,046

30,348

2.22

%

1,810,068

35,558

2.63

%

FHLB stock and other investments

1,060,699

3,951

0.50

%

450,028

8,577

2.55

%

Total interest earning assets

$

15,467,448

$

457,149

3.95

%

$

14,246,032

$

519,013

4.87

%

INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest bearing

$

4,668,594

$

28,988

0.83

%

$

3,197,313

$

42,807

1.79

%

Savings

287,060

2,578

1.20

%

234,203

1,848

1.05

%

Time deposits

4,852,286

61,869

1.70

%

5,694,778

100,075

2.35

%

Total interest bearing deposits

9,807,940

93,435

1.27

%

9,126,294

144,730

2.12

%

FHLB advances

513,376

6,208

1.62

%

715,814

9,110

1.70

%

Convertible notes, net

201,204

7,074

4.62

%

196,217

6,930

4.66

%

Subordinated debentures

99,536

3,690

4.87

%

98,410

5,156

6.91

%

Total interest bearing liabilities

$

10,622,056

$

110,407

1.39

%

$

10,136,735

$

165,926

2.19

%

Noninterest bearing demand deposits

3,573,448

2,931,080

Total funding liabilities/cost of funds

$

14,195,504

1.04

%

$

13,067,815

1.70

%

Net interest income/net interest spread

$

346,742

2.56

%

$

353,087

2.68

%

Net interest margin

2.99

%

3.31

%

Cost of deposits:

Noninterest bearing demand deposits

$

3,573,448

$

%

$

2,931,080

$

%

Interest bearing deposits

9,807,940

93,435

1.27

%

9,126,294

144,730

2.12

%

Total deposits

$

13,381,388

$

93,435

0.93

%

$

12,057,374

$

144,730

1.60

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

Nine Months Ended

AVERAGE BALANCES:

9/30/2020

6/30/2020

% change

9/30/2019

% change

9/30/2020

9/30/2019

% change

Loans receivable, including loans held for sale

$

12,728,558

$

12,755,088

%

$

11,911,658

7

%

$

12,581,703

$

11,985,936

5

%

Investments

3,353,548

3,067,205

9

%

2,281,191

47

%

2,885,745

2,260,096

28

%

Interest earning assets

16,082,106

15,822,293

2

%

14,192,849

13

%

15,467,448

14,246,032

9

%

Total assets

17,020,795

16,759,147

2

%

15,154,661

12

%

16,411,150

15,209,668

8

%

Interest bearing deposits

9,901,623

10,142,282

(2)

%

9,072,282

9

%

9,807,940

9,126,294

7

%

Interest bearing liabilities

10,557,499

11,036,392

(4)

%

10,000,882

6

%

10,622,056

10,136,735

5

%

Noninterest bearing demand deposits

4,239,108

3,510,783

21

%

2,958,233

43

%

3,573,448

2,931,080

22

%

Stockholders’ equity

2,039,555

2,016,947

1

%

2,010,458

1

%

2,028,074

1,964,146

3

%

Net interest earning assets

5,524,607

4,785,901

15

%

4,191,967

32

%

4,845,392

4,109,297

18

%

LOAN PORTFOLIO COMPOSITION:

9/30/2020

6/30/2020

% change

12/31/2019

% change

9/30/2019

% change

Commercial loans

$

3,700,020

$

3,415,111

8

%

$

2,719,818

36

%

$

2,645,770

40

%

Real estate loans

8,713,536

8,686,939

%

8,666,901

1

%

8,586,989

1

%

Consumer and other loans

706,669

769,784

(8)

%

889,288

(21)

%

871,923

(19)

%

Loans, net of deferred loan fees and costs

13,120,225

12,871,834

2

%

12,276,007

7

%

12,104,682

8

%

Allowance for credit losses

(179,849)

(161,771)

11

%

(94,144)

91

%

(93,882)

92

%

Loan receivable, net

$

12,940,376

$

12,710,063

2

%

$

12,181,863

6

%

$

12,010,800

8

%

REAL ESTATE LOANS BY PROPERTY TYPE:

9/30/2020

6/30/2020

% change

12/31/2019

% change

9/30/2019

% change

Retail buildings

$

2,311,516

$

2,278,448

1

%

$

2,298,872

1

%

$

2,304,346

%

Hotels/motels

1,675,960

1,701,909

(2)

%

1,709,189

(2)

%

1,664,311

1

%

Gas stations/car washes

824,378

836,314

(1)

%

844,081

(2)

%

911,494

(10)

%

Mixed-use facilities

754,096

706,827

7

%

785,882

(4)

%

743,428

1

%

Warehouses

1,022,657

1,040,303

(2)

%

1,030,876

(1)

%

949,336

8

%

Multifamily

518,295

497,948

4

%

465,397

11

%

473,640

9

%

Other

1,606,634

1,625,190

(1)

%

1,532,604

5

%

1,540,434

4

%

Total

$

8,713,536

$

8,686,939

%

$

8,666,901

1

%

$

8,586,989

1

%

DEPOSIT COMPOSITION

9/30/2020

6/30/2020

% change

12/31/2019

% change

9/30/2019

% change

Noninterest bearing demand deposits

$

4,488,529

$

4,036,383

11

%

$

3,108,687

44

%

$

3,033,371

48

%

Money market and other

4,763,893

4,831,679

(1)

%

3,985,556

20

%

3,752,274

27

%

Saving deposits

308,943

296,614

4

%

274,151

13

%

259,454

19

%

Time deposits

4,446,991

4,958,856

(10)

%

5,158,970

(14)

%

5,189,651

(14)

%

Total deposit balances

$

14,008,356

$

14,123,532

(1)

%

$

12,527,364

12

%

$

12,234,750

14

%

DEPOSIT COMPOSITION (%)

9/30/2020

6/30/2020

12/31/2019

9/30/2019

Noninterest bearing demand deposits

32.1

%

28.6

%

24.8

%

24.8

%

Money market and other

34.0

%

34.2

%

31.8

%

30.7

%

Saving deposits

2.2

%

2.1

%

2.2

%

2.1

%

Time deposits

31.7

%

35.1

%

41.2

%

42.4

%

Total deposit balances

100.0

%

100.0

%

100.0

%

100.0

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

CAPITAL RATIOS:

9/30/2020

6/30/2020

12/31/2019

9/30/2019

Total stockholders’ equity

$

2,040,561

$

2,030,776

$

2,036,011

$

2,031,284

Common equity tier 1 ratio

11.36

%

11.50

%

11.76

%

11.89

%

Tier 1 risk-based capital ratio

12.09

%

12.24

%

12.51

%

12.65

%

Total risk-based capital ratio

13.19

%

13.23

%

13.23

%

13.38

%

Tier 1 leverage ratio

10.02

%

10.08

%

11.22

%

11.18

%

Total risk weighted assets

$

13,691,823

$

13,388,522

$

13,208,299

$

12,951,936

Book value per common share

$

16.55

$

16.48

$

16.19

$

16.03

Tangible common equity to tangible assets 1

9.63

%

9.32

%

10.27

%

10.43

%

Tangible common equity per share 1

$

12.70

$

12.62

$

12.40

$

12.27

1 Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and core deposit intangible assets, net divided by total assets less goodwill and core deposit intangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company’s capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital.

Three Months Ended

Nine Months Ended

ALLOWANCE FOR CREDIT LOSSES CHANGES:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

9/30/2020

9/30/2019

Balance at beginning of period

$

161,771

$

144,923

$

94,144

$

93,882

$

94,066

$

94,144

$

92,557

CECL day 1 adoption impact

26,200

26,200

Provision for credit losses

22,000

17,500

28,000

1,000

2,100

67,500

6,300

Recoveries

2,428

252

2,536

939

780

5,216

2,797

Charge offs

(6,350)

(904)

(5,957)

(1,677)

(2,602)

(13,211)

(6,432)

PCI allowance adjustment

(462)

(1,340)

Balance at end of period

$

179,849

$

161,771

$

144,923

$

94,144

$

93,882

$

179,849

$

93,882

Net charge offs/average loans receivable (annualized)

0.12

%

0.02

%

0.11

%

0.02

%

0.06

%

0.08

%

0.04

%

Three Months Ended

Nine Months Ended

NET LOAN CHARGE OFFS (RECOVERIES):

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

9/30/2020

9/30/2019

Real estate loans

$

5,154

$

148

$

2,230

$

203

$

951

$

7,532

$

(504)

Commercial loans

(1,451)

240

676

245

596

(535)

3,245

Consumer loans

219

264

515

290

275

998

894

Total net charge offs

$

3,922

$

652

$

3,421

$

738

$

1,822

$

7,995

$

3,635

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

NONPERFORMING ASSETS:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Loans on nonaccrual status 3

$

69,205

$

82,137

$

72,639

$

54,785

$

42,235

Delinquent loans 90 days or more on accrual status

1,537

430

387

7,547

398

Accruing troubled debt restructured loans

35,429

44,026

43,789

35,709

34,717

Total nonperforming loans

106,171

126,593

116,815

98,041

77,350

Other real estate owned

18,410

20,983

23,039

24,091

19,374

Total nonperforming assets

$

124,581

$

147,576

$

139,854

$

122,132

$

96,724

Nonperforming assets/total assets

0.74

%

0.86

%

0.87

%

0.78

%

0.63

%

Nonperforming assets/loans receivable & OREO

0.95

%

1.14

%

1.11

%

0.99

%

0.80

%

Nonperforming assets/total capital

6.11

%

7.27

%

6.93

%

6.00

%

4.76

%

Nonperforming loans/loans receivable

0.81

%

0.98

%

0.93

%

0.80

%

0.64

%

Nonaccrual loans/loans receivable

0.53

%

0.64

%

0.58

%

0.45

%

0.35

%

Allowance for credit losses/loans receivable

1.37

%

1.26

%

1.15

%

0.77

%

0.78

%

Allowance for credit losses/nonaccrual loans

259.88

%

196.95

%

199.51

%

171.84

%

222.28

%

Allowance for credit losses/nonperforming loans

169.40

%

127.79

%

124.06

%

96.03

%

121.37

%

Allowance for credit losses/nonperforming assets

144.36

%

109.62

%

103.62

%

77.08

%

97.06

%

3 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $26.2 million, $30.3 million, $28.8 million, $28.1 million, and $37.3 million at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.

NONACCRUAL LOANS BY TYPE:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Real estate loans

$

51,739

$

64,060

$

56,787

$

40,935

$

27,920

Commercial loans

13,022

12,079

12,747

10,893

11,242

Consumer loans

4,444

5,998

3,105

2,957

3,073

Total nonaccrual loans

$

69,205

$

82,137

$

72,639

$

54,785

$

42,235

BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Retail buildings

$

5,451

$

5,526

$

5,014

$

4,215

$

3,221

Gas stations/car washes

224

1,789

1,675

233

Mixed-use facilities

4,323

3,583

3,157

3,175

3,200

Warehouses

7,320

13,433

13,381

10,381

10,449

Other 5

18,111

19,695

20,562

17,938

17,614

Total

$

35,429

$

44,026

$

43,789

$

35,709

$

34,717

5 Includes commercial business, consumer, and other loans

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

30 - 59 days

$

5,962

$

18,857

$

37,866

$

14,433

$

25,281

60 - 89 days

58,065

29,975

2,605

4,712

4,535

Total

$

64,027

$

48,832

$

40,471

$

19,145

$

29,816

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Real estate loans

$

60,510

$

27,245

$

23,753

$

7,689

$

20,572

Commercial loans

624

5,987

4,583

692

2,282

Consumer loans

2,893

15,600

12,135

10,764

6,962

Total

$

64,027

$

48,832

$

40,471

$

19,145

$

29,816

CRITICIZED LOANS:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Special mention

$

153,388

$

127,149

$

122,279

$

141,452

$

139,848

Substandard

311,902

299,357

278,771

259,278

268,605

Doubtful/Loss

6,640

11

12

13

17

Total criticized loans

$

471,930

$

426,517

$

401,062

$

400,743

$

408,470

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

Reconciliation of GAAP financial measures to non-GAAP financial measures

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. A reconciliation of the GAAP to non-GAAP financial measures utilized by management is provided below.

Three Months Ended

Nine Months Ended

9/30/2020

6/30/2020

9/30/2019

9/30/2020

9/30/2019

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Average stockholders’ equity

$

2,039,555

$

2,016,947

$

2,010,458

$

2,028,074

$

1,964,146

Less: Goodwill and core deposit intangible assets, net

(475,010)

(475,534)

(477,159)

(475,530)

(477,730)

Average tangible common equity

$

1,564,545

$

1,541,413

$

1,533,299

$

1,552,544

$

1,486,416

Net income

$

30,490

$

26,753

$

42,592

$

83,196

$

128,031

Return on average tangible common equity (annualized)

7.80

%

6.94

%

11.11

%

7.14

%

11.48

%

Three Months Ended

9/30/2020

6/30/2020

12/31/2019

9/30/2019

TANGIBLE COMMON EQUITY

Total stockholders’ equity

$

2,040,561

$

2,030,776

$

2,036,011

$

2,031,284

Less: Goodwill and core deposit intangible assets, net

(474,689)

(475,220)

(476,283)

(476,840)

Tangible common equity

$

1,565,872

$

1,555,556

$

1,559,728

$

1,554,444

Total assets

$

16,733,767

$

17,169,062

$

15,667,440

$

15,379,878

Less: Goodwill and core deposit intangible assets, net

(474,689)

(475,220)

(476,283)

(476,840)

Tangible assets

$

16,259,078

$

16,693,842

$

15,191,157

$

14,903,038

Common shares outstanding

123,260,760

123,239,276

125,756,543

126,697,925

Tangible common equity to tangible assets

9.63

%

9.32

%

10.27

%

10.43

%

Tangible common equity per share

$

12.70

$

12.62

$

12.40

$

12.27

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

Three Months Ended

Nine Months Ended

9/30/2020

6/30/2020

9/30/2019

9/30/2020

9/30/2019

PRE-TAX PRE-PROVISION INCOME

Net income

$

30,490

$

26,753

$

42,592

$

83,196

$

128,031

Add back - tax provision

9,254

9,771

14,566

25,487

43,261

Add back - provision for credit losses

22,000

17,500

2,100

67,500

6,300

Pre-tax pre-provision income

$

61,744

$

54,024

$

59,258

$

176,183

$

177,592

Three Months Ended

Nine Months Ended

9/30/2020

6/30/2020

9/30/2019

9/30/2020

9/30/2019

PRE-PROVISION NET REVENUE

Net interest income before provision for credit losses

$

117,637

$

109,814

$

116,258

$

346,742

$

353,087

Noninterest income

17,513

11,240

12,995

42,017

36,704

Pre-Provision Net Revenue

$

135,150

$

121,054

$

129,253

$

388,759

$

389,791

Contacts

Alex Ko
EVP & Chief Financial Officer
213-427-6560
alex.ko@bankofhope.com

Angie Yang
SVP, Director of Investor Relations &
Corporate Communications
213-251-2219
angie.yang@bankofhope.com