107 0 Kommentare Hope Bancorp Reports 2020 Third Quarter Financial Results

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.

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

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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