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     109  0 Kommentare Hope Bancorp Reports 2023 Third Quarter Financial Results; Announces Strategic Reorganization

    Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its third quarter and nine months ended September 30, 2023. For the three months ended September 30, 2023, net income totaled $30.0 million, or $0.25 per diluted common share. This compares with net income of $38.0 million, or $0.32 per diluted common share, in the preceding second quarter.

    “Our third quarter 2023 net interest margin expanded 13 basis points, and our net interest income grew 4% quarter-over-quarter,” stated Kevin S. Kim, Chairman, President and Chief Executive Officer. “We maintained disciplined expense control and our noninterest expenses decreased 1% over the same period. However, we recorded a provision for credit losses of $17 million for the third quarter, and certain one-time gains in the second quarter 2023 noninterest income did not reoccur. As a result, our net income declined compared with the prior quarter.”

    “Our balance sheet continued to strengthen. Total deposits grew to $15.7 billion at September 30, 2023, up 1% from June 30, 2023, reflecting growth in customer deposits, partially offset by a planned reduction of brokered time deposits. Our total capital ratio increased to 13.23% as of September 30, 2023, and all our regulatory capital ratios expanded quarter-over-quarter,” continued Kim. “Our deposit growth, taken together with our expanding capital and ample liquidity, positions us well to take advantage of profitable growth opportunities going forward.”

    Strategic Reorganization

    The Company also announced today a strategic reorganization designed to enhance shareholder value over the long term. Accordingly, the Company realigned its structure around lines of business and product delivery channels, optimized its production capacity and reduced headcount. The restructuring is expected to generate over $40 million in estimated annualized cost savings, largely related to the reduction in staffing, savings from a planned branch rationalization, subject to customary notices and approvals, and operational process improvements. The Company expects to recognize one-time charges of approximately $12 million in the fourth quarter of 2023 related to the reorganization.

    “As the largest Korean American bank in the United States, Bank of Hope has made great strides in transitioning from a traditional community bank into a regional bank serving a wide range of consumer, small business, commercial and corporate customers,” commented Kim. “Today’s strategic reorganization further evolves our business model. As a result, we expect to operate our Bank more efficiently, strengthen our franchise, enhance the customer experience and expand our customer relationships, benefiting all our stakeholders through sustainably improved profitability.”

    Financial Summary

     

    At or for the Three Months Ended

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

    9/30/2023

     

    6/30/2023

     

    9/30/2022

    Net income

    $

    30,049

     

     

    $

    38,022

     

     

    $

    53,748

     

    Diluted earnings per share

    $

    0.25

     

     

    $

    0.32

     

     

    $

    0.45

     

    Net interest income before provision for credit losses

    $

    135,378

     

     

    $

    130,689

     

     

    $

    153,186

     

    Pre-provision net revenue (“PPNR”) (1)

    $

    56,810

     

     

    $

    60,370

     

     

    $

    82,627

     

    Loans receivable

    $

    14,306,193

     

     

    $

    14,864,810

     

     

    $

    15,491,187

     

    Deposits

    $

    15,739,859

     

     

    $

    15,619,352

     

     

    $

    15,502,209

     

    Total assets

    $

    20,076,364

     

     

    $

    20,366,138

     

     

    $

    19,083,388

     

    Total equity

    $

    2,030,424

     

     

    $

    2,067,998

     

     

    $

    1,975,725

     

    Total capital ratio

     

    13.23

    %

     

     

    12.64

    %

     

     

    11.72

    %

    Tangible common equity (“TCE”) ratio (1)

     

    7.96

    %

     

     

    8.04

    %

     

     

    8.09

    %

    Allowance for credit losses to loans receivable

     

    1.11

    %

     

     

    1.16

    %

     

     

    1.04

    %

    Nonperforming assets to total assets (2)

     

    0.31

    %

     

     

    0.38

    %

     

     

    0.51

    %

    Return on average assets (“ROA”) (3)

     

    0.60

    %

     

     

    0.74

    %

     

     

    1.17

    %

    Return on average equity (“ROE”) (3)

     

    5.78

    %

     

     

    7.34

    %

     

     

    10.58

    %

    Return on average TCE (“ROTCE”) (1) (3)

     

    7.47

    %

     

     

    9.49

    %

     

     

    13.77

    %

    ROA (PPNR) (1) (3)

     

    1.13

    %

     

     

    1.18

    %

     

     

    1.79

    %

    Net interest margin (3)

     

    2.83

    %

     

     

    2.70

    %

     

     

    3.49

    %

    Efficiency ratio

     

    60.5

    %

     

     

    59.1

    %

     

     

    50.4

    %

     

    (1)

     

    PPNR, TCE ratio, ROTCE, and ROA (PPNR) are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.

    (2)

     

    Excludes delinquent Small Business Administration (“SBA”) loans that are guaranteed and currently in liquidation.

    (3)

     

    Annualized.

    Lesen Sie auch

    Operating Results for the 2023 Third Quarter

    Net interest income growth and net interest margin expansion. Net interest income before provision for credit losses for the 2023 third quarter totaled $135.4 million, growing 4% from $130.7 million in the preceding second quarter. Third quarter 2023 net interest margin expanded 13 basis points to 2.83%, up from 2.70% in the 2023 second quarter. The linked quarter net interest income growth and net interest margin expansion reflected higher yields on earning assets, a decrease in the average volume of borrowings and debt, and an increase in the average volume of interest-earning cash and deposits at other banks, partially offset by a higher cost of funds and a lower average volume of loans.

    Third quarter 2023 weighted average yield on earning assets of 5.77% expanded 24 basis points quarter-over-quarter; the rate of change accelerated from the previous quarter. In comparison, the third quarter 2023 weighted average cost of funds of 3.16% increased 14 basis points quarter-over-quarter; the rate of change decelerated from the previous quarter.

    Noninterest income. Noninterest income for the 2023 third quarter totaled $8.3 million, compared with $17.0 million in the preceding second quarter. Second quarter 2023 noninterest income included a one-time $5.8 million cash distribution from a gain on an investment in an affordable housing partnership and $1.9 million of gains on SBA loan sales. The Company did not sell any SBA 7(a) loans during the 2023 third quarter, retaining loan production on its balance sheet instead. In comparison, during the preceding 2023 second quarter, the Company sold $38.4 million of the guaranteed portion of SBA 7(a) loans for net gains on sale of $1.9 million.

    Noninterest expense. Noninterest expense for the 2023 third quarter decreased 1% to $86.9 million, down from $87.3 million in the preceding second quarter. The linked quarter decrease was largely driven by lower salaries and employee benefits expense and lower FDIC assessment expense, partially offset by higher earned interest credit costs. Third quarter 2023 salaries and employee benefits expense decreased 2% to $51.0 million, down from $52.3 million in the 2023 second quarter. The Company’s efficiency ratio for the 2023 third quarter was 60.5%, compared with 59.1% in the preceding second quarter.

    Tax rate. The effective tax rate for the 2023 third quarter was 24.9%, compared with 26.1% for the preceding second quarter. The year-to-date effective tax rate for the first nine months of 2023 was 25.7%.

    Balance Sheet Summary

    Strong Liquidity. At September 30, 2023, cash and cash equivalents increased to $2.50 billion, up from $2.30 billion at June 30, 2023, and up from $331.3 million at September 30, 2022. Available borrowing capacity, cash and cash equivalents, and unpledged investment securities totaled $8.29 billion at September 30, 2023, equivalent to 53% of total deposits and well exceeding the Bank’s uninsured deposit balances.

    Loans. Loans receivable of $14.31 billion at September 30, 2023, decreased 4% from $14.86 billion at June 30, 2023, reflecting our prudent approach to loan growth, an intentional decrease in mortgage warehouse lines, and the impact of paydowns and payoffs in a high interest rate environment. Year-over-year, loans receivable decreased 8%. The following table sets forth the loan portfolio composition and percentage of total loans at September 30, 2023, June 30, 2023, and September 30, 2022:

    (dollars in thousands) (unaudited)

    9/30/2023

     

    6/30/2023

     

    9/30/2022

     

    Balance

     

    Percentage

     

    Balance

     

    Percentage

     

    Balance

     

    Percentage

    Commercial real estate (“CRE”) loans

    $

    8,972,886

     

    62.7

    %

     

    $

    9,192,160

     

    61.9

    %

     

    $

    9,504,893

     

    61.3

    %

    Commercial and industrial (“C&I”) loans

     

    4,450,341

     

     

    31.1

    %

     

     

    4,805,126

     

     

    32.3

    %

     

     

    5,124,421

     

     

    33.1

    %

    Residential mortgage and other loans

     

    882,966

     

     

    6.2

    %

     

     

    867,524

     

     

    5.8

    %

     

     

    861,873

     

     

    5.6

    %

    Loans receivable

    $

    14,306,193

     

     

    100.0

    %

     

    $

    14,864,810

     

     

    100.0

    %

     

    $

    15,491,187

     

     

    100.0

    %

    Deposits. Total deposits of $15.74 billion at September 30, 2023, grew 1% from $15.62 billion at June 30, 2023, reflecting growth in customer deposits, partially offset by a planned reduction of brokered time deposits. Year-over-year, total deposits increased 2%. The gross loan-to-deposit ratio was 91.0% at September 30, 2023, compared with 95.5% at June 30, 2023, and 100.2% a year ago at September 30, 2022. The following table sets forth the deposit composition and percentage of total deposits at September 30, 2023, June 30, 2023, and September 30, 2022:

    (dollars in thousands) (unaudited)

    9/30/2023

     

    6/30/2023

     

    9/30/2022

     

    Balance

     

    Percentage

     

    Balance

     

    Percentage

     

    Balance

     

    Percentage

    Noninterest bearing demand deposits

    $

    4,249,788

     

    27.0

    %

     

    $

    4,229,247

     

    27.1

    %

     

    $

    5,590,952

     

    36.1

    %

    Money market and interest bearing demand deposits

     

    4,424,918

     

     

    28.1

    %

     

     

    4,188,584

     

     

    26.8

    %

     

     

    5,885,093

     

     

    38.0

    %

    Savings deposits

     

    430,765

     

     

    2.8

    %

     

     

    224,495

     

     

    1.4

    %

     

     

    317,841

     

     

    2.0

    %

    Time deposits

     

    6,634,388

     

     

    42.1

    %

     

     

    6,977,026

     

     

    44.7

    %

     

     

    3,708,323

     

     

    23.9

    %

    Total deposits

    $

    15,739,859

     

     

    100.0

    %

     

    $

    15,619,352

     

     

    100.0

    %

     

    $

    15,502,209

     

     

    100.0

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Gross loan-to-deposit ratio

     

     

    91.0

    %

     

     

     

    95.5

    %

     

     

     

    100.2

    %

    Uninsured deposits at September 30, 2023, represented 37% of the Bank’s deposits.

    Borrowings. Federal Home Loan Bank and Federal Reserve Bank borrowings totaled $1.80 billion at September 30, 2023, compared with $2.26 billion at June 30, 2023, and $1.07 billion at September 30, 2022. Linked quarter growth in deposits and decrease in loans reduced the need for borrowings in the 2023 third quarter.

    Credit Quality and Allowance for Credit Losses

    Nonperforming assets. Nonperforming assets totaled $61.7 million at September 30, 2023, a decrease of 20% from June 30, 2023. The quarter-over-quarter decrease in nonperforming assets reflects charge offs of nonaccrual loans, payoffs and workouts, partially offset by new inflows. The nonperforming assets ratio was 0.31% of total assets at September 30, 2023, an improvement from 0.38% at June 30, 2023.

    The following table sets forth the components of nonperforming assets at September 30, 2023, June 30, 2023, and September 30, 2022:

    (dollars in thousands) (unaudited)

    9/30/2023

     

    6/30/2023

     

    9/30/2022

    Loans on nonaccrual status (1)

    $

    39,081

     

     

    $

    61,252

     

     

    $

    64,571

     

    Accruing delinquent loans past due 90 days or more

     

    21,579

     

     

     

    15,182

     

     

     

    5,306

     

    Accruing troubled debt restructured loans (2)

     

    —

     

     

     

    —

     

     

     

    25,631

     

    Total nonperforming loans

     

    60,660

     

     

     

    76,434

     

     

     

    95,508

     

    Other real estate owned

     

    1,043

     

     

     

    938

     

     

     

    1,480

     

    Total nonperforming assets

    $

    61,703

     

     

    $

    77,372

     

     

    $

    96,988

     

     

     

     

     

     

     

     

     

     

    Nonperforming assets/total assets

     

    0.31

    %

     

     

    0.38

    %

     

     

    0.51

    %

     

    (1)

     

    Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $12.1 million, $11.9 million and $9.9 million at September 30, 2023, June 30, 2023, and September 30, 2022, respectively.

    (2)

     

    The Company adopted ASU 2022-02 in 2023, which eliminated the concept of troubled debt restructured (“TDR”) loans from GAAP; therefore, accruing TDR loans are no longer included in nonperforming loans.

    Net charge offs. The Company recorded net charge offs of $31.0 million in the 2023 third quarter. This included an idiosyncratic full charge off of $23.4 million related to a borrower that entered into Chapter 7 liquidation in August 2023. Related to this credit, the Company had recorded impairment reserves of $9.6 million at June 30, 2023. For the 2023 third quarter, the Company recorded a provision for credit losses of $16.8 million, compared with $8.9 million in the preceding second quarter.

    The following table sets forth net charge offs (recoveries) and net charge offs (recoveries) to average loans receivable, annualized, for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022:

     

    For the Three Months Ended

    (dollars in thousands) (unaudited)

    9/30/2023

     

    6/30/2023

     

    9/30/2022

    Net charge offs (recoveries)

    $

    30,987

     

     

    $

    (552

    )

     

    $

    219

     

    Net charge offs (recoveries)/average loans receivable (annualized)

     

    0.85

    %

     

     

    (0.01

    )%

     

     

    0.01

    %

    Allowance for credit losses. The allowance for credit losses totaled $158.8 million at September 30, 2023, compared with $173.0 million at June 30, 2023. The allowance coverage ratio was 1.11% of loans receivable at September 30, 2023, compared with 1.16% at June 30, 2023. Excluding the $9.6 million of impairment reserves related to the aforementioned charged off credit, the allowance coverage ratio as of June 30, 2023, was 1.10%. Year-over-year, allowance coverage of loans receivable increased from 1.04% at September 30, 2022.

    The following table sets forth the allowance for credit losses and allowance coverage ratios at September 30, 2023, June 30, 2023, and September 30, 2022:

    (dollars in thousands) (unaudited)

    9/30/2023

     

    6/30/2023

     

    9/30/2022

    Allowance for credit losses

    $

    158,809

     

     

    $

    172,996

     

     

    $

    160,561

     

    Allowance for credit losses/loans receivable

     

    1.11

    %

     

     

    1.16

    %

     

     

    1.04

    %

    Capital

    The Company’s capital ratios are strong and all regulatory capital ratios expanded quarter-over-quarter. At September 30, 2023, the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. The following table sets forth the capital ratios for the Company at September 30, 2023, June 30, 2023, and September 30, 2022:

    (unaudited)

    9/30/2023

     

    6/30/2023

     

    9/30/2022

     

    Minimum Guideline

    for “Well-Capitalized”

    Common Equity Tier 1 Capital Ratio

    11.67

    %

     

    11.05

    %

     

    10.32

    %

     

    6.50

    %

    Tier 1 Capital Ratio

    12.32

    %

     

    11.68

    %

     

    10.92

    %

     

    8.00

    %

    Total Capital Ratio

    13.23

    %

     

    12.64

    %

     

    11.72

    %

     

    10.00

    %

    Leverage Ratio

    9.83

    %

     

    9.57

    %

     

    10.25

    %

     

    5.00

    %

    At September 30, 2023, total stockholders’ equity was $2.03 billion, or $16.92 per share, tangible common equity per share was $13.01, and the tangible common equity ratio was 7.96%. Quarter-over-quarter, stockholders’ equity declined by 2%, or $37.6 million, primarily reflecting a negative change in accumulated other comprehensive income (“AOCI”) of $53.8 million and $16.8 million in common dividends declared, partially offset by $30.0 million in net income. The following table sets forth the TCE per share and the TCE ratio at September 30, 2023, June 30, 2023, and September 30, 2022:

    (unaudited)

    9/30/2023

     

    6/30/2023

     

    9/30/2022

    TCE per share (1)

    $

    13.01

     

     

    $

    13.32

     

     

    $

    12.60

     

    TCE ratio (1)

     

    7.96

    %

     

     

    8.04

    %

     

     

    8.09

    %

     

    (1)

     

    TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.

    Investor Conference Call

    The Company previously announced that it will host an investor conference call on Monday, October 23, 2023, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review unaudited financial results for its third quarter ended September 30, 2023. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through October 30, 2023, replay access code 5386919.

    Non-GAAP Financial Metrics

    This news release contains certain non-GAAP financial measure disclosures, including PPNR, TCE per share, TCE ratio, ROTCE, ROA (PPNR), and ROE (PPNR). Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operational performance and the Company’s capital levels and has included these figures in response to market participant interest in these financial metrics. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.

    About Hope Bancorp, Inc.

    Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the first and only super regional Korean American bank in the United States with $20.08 billion in total assets as of September 30, 2023. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 54 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama, and Georgia. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, New York City, Northern California and Houston; commercial loan production offices in Northern California, Seattle and Tampa, Fla.; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate lending, commercial and industrial lending, SBA lending, and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.

    Forward-Looking Statements

    Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market, statements regarding our business strategies, objectives and vision, and statements about our strategic reorganization. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible further deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company’s allowances for credit losses; regulatory risks associated with current and future regulations; and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company’s most recent Annual Report on Form 10-K. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

    Hope Bancorp, Inc.

    Selected Financial Data

    Unaudited (dollars in thousands, except share data)

     

    Assets:

    9/30/2023

     

    6/30/2023

     

    % change

     

    9/30/2022

     

    % change

    Cash and due from banks

    $

    2,500,323

     

     

    $

    2,302,339

     

     

    9

    %

     

    $

    331,336

     

     

    655

    %

    Investment securities

     

    2,260,837

     

     

     

    2,186,346

     

     

    3

    %

     

     

    2,264,533

     

     

    —

    %

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

     

    60,433

     

     

     

    60,213

     

     

    —

    %

     

     

    65,192

     

     

    (7

    )%

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

     

    19,502

     

     

     

    49,246

     

     

    (60

    )%

     

     

    41,989

     

     

    (54

    )%

    Loans receivable

     

    14,306,193

     

     

     

    14,864,810

     

     

    (4

    )%

     

     

    15,491,187

     

     

    (8

    )%

    Allowance for credit losses

     

    (158,809

    )

     

     

    (172,996

    )

     

    (8

    )%

     

     

    (160,561

    )

     

    (1

    )%

    Net loans receivable

     

    14,147,384

     

     

     

    14,691,814

     

     

    (4

    )%

     

     

    15,330,626

     

     

    (8

    )%

    Accrued interest receivable

     

    60,665

     

     

     

    60,118

     

     

    1

    %

     

     

    42,363

     

     

    43

    %

    Premises and equipment, net

     

    51,764

     

     

     

    50,513

     

     

    2

    %

     

     

    46,169

     

     

    12

    %

    Bank owned life insurance

     

    88,643

     

     

     

    88,238

     

     

    —

    %

     

     

    76,788

     

     

    15

    %

    Goodwill

     

    464,450

     

     

     

    464,450

     

     

    —

    %

     

     

    464,450

     

     

    —

    %

    Servicing assets

     

    10,457

     

     

     

    11,532

     

     

    (9

    )%

     

     

    11,601

     

     

    (10

    )%

    Other intangible assets, net

     

    4,382

     

     

     

    4,830

     

     

    (9

    )%

     

     

    6,212

     

     

    (29

    )%

    Other assets

     

    407,524

     

     

     

    396,499

     

     

    3

    %

     

     

    402,129

     

     

    1

    %

    Total assets

    $

    20,076,364

     

     

    $

    20,366,138

     

     

    (1

    )%

     

    $

    19,083,388

     

     

    5

    %

     

     

     

     

     

     

     

     

     

     

    Liabilities:

     

     

     

     

     

     

     

     

     

    Deposits

    $

    15,739,859

     

     

    $

    15,619,352

     

     

    1

    %

     

    $

    15,502,209

     

     

    2

    %

    FHLB and Federal Reserve Bank (“FRB”) borrowings

     

    1,795,726

     

     

     

    2,260,000

     

     

    (21

    )%

     

     

    1,072,000

     

     

    68

    %

    Convertible notes, net

     

    444

     

     

     

    444

     

     

    —

    %

     

     

    216,913

     

     

    (100

    )%

    Subordinated debentures

     

    107,505

     

     

     

    107,188

     

     

    —

    %

     

     

    106,258

     

     

    1

    %

    Accrued interest payable

     

    166,831

     

     

     

    109,236

     

     

    53

    %

     

     

    11,713

     

     

    1,324

    %

    Other liabilities

     

    235,575

     

     

     

    201,920

     

     

    17

    %

     

     

    198,570

     

     

    19

    %

    Total liabilities

    $

    18,045,940

     

     

    $

    18,298,140

     

     

    (1

    )%

     

    $

    17,107,663

     

     

    5

    %

     

     

     

     

     

     

     

     

     

     

    Stockholders’ Equity:

     

     

     

     

     

     

     

     

     

    Common stock, $0.001 par value

    $

    137

     

     

    $

    137

     

     

    —

    %

     

    $

    137

     

     

    —

    %

    Additional paid-in capital

     

    1,436,769

     

     

     

    1,433,788

     

     

    —

    %

     

     

    1,428,052

     

     

    1

    %

    Retained earnings

     

    1,140,870

     

     

     

    1,127,624

     

     

    1

    %

     

     

    1,048,738

     

     

    9

    %

    Treasury stock, at cost

     

    (264,667

    )

     

     

    (264,667

    )

     

    —

    %

     

     

    (264,667

    )

     

    —

    %

    Accumulated other comprehensive loss, net

     

    (282,685

    )

     

     

    (228,884

    )

     

    (24

    )%

     

     

    (236,535

    )

     

    (20

    )%

    Total stockholders’ equity

     

    2,030,424

     

     

     

    2,067,998

     

     

    (2

    )%

     

     

    1,975,725

     

     

    3

    %

    Total liabilities and stockholders’ equity

    $

    20,076,364

     

     

    $

    20,366,138

     

     

    (1

    )%

     

    $

    19,083,388

     

     

    5

    %

     

     

     

     

     

     

     

     

     

     

    Common stock shares - authorized

     

    150,000,000

     

     

     

    150,000,000

     

     

     

     

     

    150,000,000

     

     

     

    Common stock shares - outstanding

     

    120,026,220

     

     

     

    120,014,888

     

     

     

     

     

    119,479,253

     

     

     

    Treasury stock shares

     

    17,382,835

     

     

     

    17,382,835

     

     

     

     

     

    17,382,835

     

     

     

     

    Hope Bancorp, Inc.

    Selected Financial Data

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

     

     

    Three Months Ended

     

    Nine Months Ended

     

    9/30/2023

     

    6/30/2023

     

    % change

     

    9/30/2022

     

    % change

     

    9/30/2023

     

    9/30/2022

     

    % change

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Interest and fees on loans

    $

    229,937

     

    $

    225,671

     

    2

    %

     

    $

    175,078

     

    31

    %

     

    $

    671,543

     

    $

    452,774

     

    48

    %

    Interest on investment securities

     

    17,006

     

     

     

    15,534

     

     

    9

    %

     

     

    13,498

     

     

    26

    %

     

     

    47,665

     

     

     

    37,462

     

     

    27

    %

    Interest on cash and deposits at other banks

     

    28,115

     

     

     

    25,295

     

     

    11

    %

     

     

    142

     

     

    NM

     

     

     

    58,332

     

     

     

    352

     

     

    NM

     

    Interest on other investments

     

    735

     

     

     

    684

     

     

    7

    %

     

     

    464

     

     

    58

    %

     

     

    2,114

     

     

     

    1,290

     

     

    64

    %

    Total interest income

     

    275,793

     

     

     

    267,184

     

     

    3

    %

     

     

    189,182

     

     

    46

    %

     

     

    779,654

     

     

     

    491,878

     

     

    59

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Interest on deposits

     

    117,854

     

     

     

    109,724

     

     

    7

    %

     

     

    30,667

     

     

    284

    %

     

     

    319,926

     

     

     

    51,563

     

     

    520

    %

    Interest on borrowings

     

    22,561

     

     

     

    26,771

     

     

    (16

    )%

     

     

    5,329

     

     

    323

    %

     

     

    59,783

     

     

     

    12,415

     

     

    382

    %

    Total interest expense

     

    140,415

     

     

     

    136,495

     

     

    3

    %

     

     

    35,996

     

     

    290

    %

     

     

    379,709

     

     

     

    63,978

     

     

    493

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net interest income before provision for credit losses

     

    135,378

     

     

     

    130,689

     

     

    4

    %

     

     

    153,186

     

     

    (12

    )%

     

     

    399,945

     

     

     

    427,900

     

     

    (7

    )%

    Provision for credit losses

     

    16,800

     

     

     

    8,900

     

     

    89

    %

     

     

    9,200

     

     

    83

    %

     

     

    27,400

     

     

     

    1,400

     

     

    1,857

    %

    Net interest income after provision for credit losses

     

    118,578

     

     

     

    121,789

     

     

    (3

    )%

     

     

    143,986

     

     

    (18

    )%

     

     

    372,545

     

     

     

    426,500

     

     

    (13

    )%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Service fees on deposit accounts

     

    2,415

     

     

     

    2,325

     

     

    4

    %

     

     

    2,535

     

     

    (5

    )%

     

     

    6,961

     

     

     

    6,779

     

     

    3

    %

    Net gains on sales of SBA loans

     

    —

     

     

     

    1,872

     

     

    (100

    )%

     

     

    2,782

     

     

    (100

    )%

     

     

    4,097

     

     

     

    14,189

     

     

    (71

    )%

    Net gains on sales of residential mortgage loans

     

    118

     

     

     

    82

     

     

    44

    %

     

     

    29

     

     

    307

    %

     

     

    264

     

     

     

    862

     

     

    (69

    )%

    Other income and fees

     

    5,772

     

     

     

    12,735

     

     

    (55

    )%

     

     

    8,009

     

     

    (28

    )%

     

     

    24,975

     

     

     

    17,457

     

     

    43

    %

    Total noninterest income

     

    8,305

     

     

     

    17,014

     

     

    (51

    )%

     

     

    13,355

     

     

    (38

    )%

     

     

    36,297

     

     

     

    39,287

     

     

    (8

    )%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Salaries and employee benefits

     

    51,033

     

     

     

    52,305

     

     

    (2

    )%

     

     

    53,222

     

     

    (4

    )%

     

     

    160,507

     

     

     

    152,025

     

     

    6

    %

    Occupancy

     

    7,149

     

     

     

    6,967

     

     

    3

    %

     

     

    6,682

     

     

    7

    %

     

     

    21,637

     

     

     

    21,195

     

     

    2

    %

    Furniture and equipment

     

    5,625

     

     

     

    5,393

     

     

    4

    %

     

     

    4,967

     

     

    13

    %

     

     

    16,076

     

     

     

    14,389

     

     

    12

    %

    Data processing and communications

     

    2,891

     

     

     

    2,917

     

     

    (1

    )%

     

     

    2,469

     

     

    17

    %

     

     

    8,630

     

     

     

    7,823

     

     

    10

    %

    FDIC assessment

     

    3,683

     

     

     

    4,691

     

     

    (21

    )%

     

     

    1,633

     

     

    126

    %

     

     

    10,155

     

     

     

    4,652

     

     

    118

    %

    Earned interest credit

     

    6,377

     

     

     

    5,090

     

     

    25

    %

     

     

    4,685

     

     

    36

    %

     

     

    15,894

     

     

     

    5,996

     

     

    165

    %

    Other

     

    10,115

     

     

     

    9,970

     

     

    1

    %

     

     

    10,256

     

     

    (1

    )%

     

     

    31,661

     

     

     

    33,572

     

     

    (6

    )%

    Total noninterest expense

     

    86,873

     

     

     

    87,333

     

     

    (1

    )%

     

     

    83,914

     

     

    4

    %

     

     

    264,560

     

     

     

    239,652

     

     

    10

    %

    Income before income taxes

     

    40,010

     

     

     

    51,470

     

     

    (22

    )%

     

     

    73,427

     

     

    (46

    )%

     

     

    144,282

     

     

     

    226,135

     

     

    (36

    )%

    Income tax provision

     

    9,961

     

     

     

    13,448

     

     

    (26

    )%

     

     

    19,679

     

     

    (49

    )%

     

     

    37,090

     

     

     

    59,561

     

     

    (38

    )%

    Net income

    $

    30,049

     

     

    $

    38,022

     

     

    (21

    )%

     

    $

    53,748

     

     

    (44

    )%

     

    $

    107,192

     

     

    $

    166,574

     

     

    (36

    )%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Earnings Per Common Share - Basic

    $

    0.25

     

     

    $

    0.32

     

     

     

     

    $

    0.45

     

     

     

     

    $

    0.89

     

     

    $

    1.39

     

     

     

    Earnings Per Common Share - Diluted

    $

    0.25

     

     

    $

    0.32

     

     

     

     

    $

    0.45

     

     

     

     

    $

    0.89

     

     

    $

    1.38

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted Average Shares Outstanding - Basic

     

    120,020,567

     

     

     

    119,953,174

     

     

     

     

     

    119,476,035

     

     

     

     

     

    119,843,382

     

     

     

    119,940,044

     

     

     

    Weighted Average Shares Outstanding - Diluted

     

    120,374,618

     

     

     

    120,129,359

     

     

     

     

     

    119,996,523

     

     

     

     

     

    120,249,952

     

     

     

    120,595,988

     

     

     

     

    Hope Bancorp, Inc.

    Selected Financial Data

    Unaudited

     

     

    For the Three Months Ended

     

    For the Nine Months Ended

    Profitability measures (annualized):

    9/30/2023

     

    6/30/2023

     

    9/30/2022

     

    9/30/2023

     

    9/30/2022

    ROA

    0.60

    %

     

    0.74

    %

     

    1.17

    %

     

    0.72

    %

     

    1.23

    %

    ROE

    5.78

    %

     

    7.34

    %

     

    10.58

    %

     

    6.92

    %

     

    10.85

    %

    ROA (PPNR) (1)

    1.13

    %

     

    1.18

    %

     

    1.79

    %

     

    1.15

    %

     

    1.68

    %

    ROE (PPNR) (1)

    10.93

    %

     

    11.65

    %

     

    16.26

    %

     

    11.08

    %

     

    14.83

    %

    ROTCE (1)

    7.47

    %

     

    9.49

    %

     

    13.77

    %

     

    8.95

    %

     

    14.10

    %

    Net interest margin

    2.83

    %

     

    2.70

    %

     

    3.49

    %

     

    2.84

    %

     

    3.36

    %

    Efficiency ratio (not annualized)

    60.46

    %

     

    59.13

    %

     

    50.39

    %

     

    60.65

    %

     

    51.30

    %

    Noninterest expense / average assets

    1.73

    %

     

    1.71

    %

     

    1.82

    %

     

    1.77

    %

     

    1.77

    %

     

     

     

     

     

     

     

     

     

     

    (1) ROA (PPNR), ROE (PPNR), and ROTCE are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.

     

     

     

     

     

     

     

     

     

     

    Hope Bancorp, Inc.

    Selected Financial Data

    Unaudited (dollars in thousands)

     

     

    Three Months Ended

     

    9/30/2023

     

    6/30/2023

     

    9/30/2022

     

     

     

    Interest

     

    Annualized

     

     

     

    Interest

     

    Annualized

     

     

     

    Interest

     

    Annualized

     

    Average

     

    Income/

     

    Average

     

    Average

     

    Income/

     

    Average

     

    Average

     

    Income/

     

    Average

     

    Balance

     

    Expense

     

    Yield/Cost

     

    Balance

     

    Expense

     

    Yield/Cost

     

    Balance

     

    Expense

     

    Yield/Cost

    INTEREST EARNING ASSETS:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Loans, including loans held for sale

    $

    14,550,106

     

    $

    229,937

     

    6.27

    %

     

    $

    15,105,212

     

    $

    225,671

     

    5.99

    %

     

    $

    14,925,298

     

    $

    175,078

     

    4.65

    %

    Investment securities

     

    2,275,133

     

     

     

    17,006

     

     

    2.97

    %

     

     

    2,243,614

     

     

     

    15,534

     

     

    2.78

    %

     

     

    2,366,696

     

     

     

    13,498

     

     

    2.26

    %

    Interest earning cash and deposits at other banks

     

    2,106,469

     

     

     

    28,115

     

     

    5.30

    %

     

     

    1,996,924

     

     

     

    25,295

     

     

    5.08

    %

     

     

    54,870

     

     

     

    142

     

     

    1.03

    %

    FHLB stock and other investments

     

    47,316

     

     

     

    735

     

     

    6.16

    %

     

     

    47,044

     

     

     

    684

     

     

    5.83

    %

     

     

    52,854

     

     

     

    464

     

     

    3.48

    %

    Total interest earning assets

    $

    18,979,024

     

     

    $

    275,793

     

     

    5.77

    %

     

    $

    19,392,794

     

     

    $

    267,184

     

     

    5.53

    %

     

    $

    17,399,718

     

     

    $

    189,182

     

     

    4.31

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    INTEREST BEARING LIABILITIES:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Deposits:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Money market and interest bearing demand

    $

    4,202,076

     

     

    $

    36,574

     

     

    3.45

    %

     

    $

    4,279,819

     

     

    $

    34,377

     

     

    3.22

    %

     

    $

    6,255,271

     

     

    $

    19,614

     

     

    1.24

    %

    Savings deposits

     

    331,354

     

     

     

    2,240

     

     

    2.68

    %

     

     

    216,060

     

     

     

    674

     

     

    1.25

    %

     

     

    324,487

     

     

     

    969

     

     

    1.18

    %

    Time deposits

     

    6,862,038

     

     

     

    79,040

     

     

    4.57

    %

     

     

    6,890,035

     

     

     

    74,673

     

     

    4.35

    %

     

     

    3,146,432

     

     

     

    10,084

     

     

    1.27

    %

    Total interest bearing deposits

     

    11,395,468

     

     

     

    117,854

     

     

    4.10

    %

     

     

    11,385,914

     

     

     

    109,724

     

     

    3.87

    %

     

     

    9,726,190

     

     

     

    30,667

     

     

    1.25

    %

    FHLB and FRB borrowings

     

    1,809,322

     

     

     

    19,821

     

     

    4.35

    %

     

     

    2,177,264

     

     

     

    23,622

     

     

    4.35

    %

     

     

    448,837

     

     

     

    2,393

     

     

    2.12

    %

    Convertible notes, net

     

    444

     

     

     

    2

     

     

    1.76

    %

     

     

    96,621

     

     

     

    598

     

     

    2.45

    %

     

     

    216,762

     

     

     

    1,322

     

     

    2.39

    %

    Subordinated debentures

     

    103,429

     

     

     

    2,738

     

     

    10.36

    %

     

     

    103,123

     

     

     

    2,551

     

     

    9.79

    %

     

     

    102,182

     

     

     

    1,614

     

     

    6.18

    %

    Total interest bearing liabilities

    $

    13,308,663

     

     

    $

    140,415

     

     

    4.19

    %

     

    $

    13,762,922

     

     

    $

    136,495

     

     

    3.98

    %

     

    $

    10,493,971

     

     

    $

    35,996

     

     

    1.36

    %

    Noninterest bearing demand deposits

     

    4,312,117

     

     

     

     

     

     

     

    4,366,868

     

     

     

     

     

     

     

    5,719,213

     

     

     

     

     

    Total funding liabilities/cost of funds

    $

    17,620,780

     

     

     

     

    3.16

    %

     

    $

    18,129,790

     

     

     

     

    3.02

    %

     

    $

    16,213,184

     

     

     

     

    0.88

    %

    Net interest income/net interest spread

     

     

    $

    135,378

     

     

    1.58

    %

     

     

     

    $

    130,689

     

     

    1.55

    %

     

     

     

    $

    153,186

     

     

    2.95

    %

    Net interest margin

     

     

     

     

    2.83

    %

     

     

     

     

     

    2.70

    %

     

     

     

     

     

    3.49

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cost of deposits:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Noninterest bearing demand deposits

    $

    4,312,117

     

     

    $

    —

     

     

    —

    %

     

    $

    4,366,868

     

     

    $

    —

     

     

    —

    %

     

    $

    5,719,213

     

     

    $

    —

     

     

    —

    %

    Interest bearing deposits

     

    11,395,468

     

     

     

    117,854

     

     

    4.10

    %

     

     

    11,385,914

     

     

     

    109,724

     

     

    3.87

    %

     

     

    9,726,190

     

     

     

    30,667

     

     

    1.25

    %

    Total deposits

    $

    15,707,585

     

     

    $

    117,854

     

     

    2.98

    %

     

    $

    15,752,782

     

     

    $

    109,724

     

     

    2.79

    %

     

    $

    15,445,403

     

     

    $

    30,667

     

     

    0.79

    %

     

    Hope Bancorp, Inc.

    Selected Financial Data

    Unaudited (dollars in thousands)

     

     

    Nine Months Ended

     

    9/30/2023

    		 

    9/30/2022

     

     

    		 

    Interest

    		 

    Annualized

    		 

     

    		 

    Interest

    		 

    Annualized

     

    Average

    		 

    Income/

    		 

    Average

    		 

    Average

    		 

    Income/

    		 

    Average

     

    Balance

    		 

    Expense

    		 

    Yield/Cost

    		 

    Balance

    		 

    Expense

    		 

    Yield/Cost

    INTEREST EARNING ASSETS:

     

    		 

     

    		 

     

    		 

     

    		 

     

    		 

     

    Loans, including loans held for sale

    $

    14,961,058

    		 

    $

    671,543

    		 

    6.00

    %

    		 

    $

    14,378,774

    		 

    $

    452,774

    		 

    4.21

    %

    Investment securities

     

    2,255,839

     

    		 

     

    47,665

     

    		 

    2.83

    %

    		 

     

    2,469,858

     

    		 

     

    37,462

     

    		 

    2.03

    %

    Interest earning cash and deposits at other banks

     

    1,531,561

     

    		 

     

    58,332

     

    		 

    5.09

    %

    		 

     

    133,745

     

    		 

     

    352

     

    		 

    0.35

    %

    FHLB stock and other investments

     

    47,135

     

    		 

     

    2,114

     

    		 

    6.00

    %

    		 

     

    63,542

     

    		 

     

    1,290

     

    		 

    2.71

    %

    Total interest earning assets

    $

    18,795,593

     

    		 

    $

    779,654

     

    		 

    5.55

    %

    		 

    $

    17,045,919

     

    		 

    $

    491,878

     

    		 

    3.86

    %

     

     

    		 

     

    		 

     

    		 

     

    		 

     

    		 

     

    INTEREST BEARING LIABILITIES:

     

    		 

     

    		 

     

    		 

     

    		 

     

    		 

     

    Deposits:

     

    		 

     

    		 

     

    		 

     

    		 

     

    		 

     

    Money market and interest bearing demand

    $

    4,603,479

     

    		 

    $

    112,349

     

    		 

    3.26

    %

    		 

    $

    6,360,040

     

    		 

    $

    33,970

     

    		 

    0.71

    %

    Savings deposits

     

    268,145

     

    		 

     

    3,741

     

    		 

    1.87

    %

    		 

     

    322,058

     

    		 

     

    2,834

     

    		 

    1.18

    %

    Time deposits

     

    6,436,645

     

    		 

     

    203,836

     

    		 

    4.23

    %

    		 

     

    2,683,217

     

    		 

     

    14,759

     

    		 

    0.74

    %

    Total interest bearing deposits

     

    11,308,269

     

    		 

     

    319,926

     

    		 

    3.78

    %

    		 

     

    9,365,315

     

    		 

     

    51,563

     

    		 

    0.74

    %

    FHLB and FRB borrowings

     

    1,558,493

     

    		 

     

    50,141

     

    		 

    4.30

    %

    		 

     

    423,875

     

    		 

     

    4,537

     

    		 

    1.43

    %

    Convertible notes, net

     

    103,933

     

    		 

     

    1,922

     

    		 

    2.44

    %

    		 

     

    216,538

     

    		 

     

    3,967

     

    		 

    2.42

    %

    Subordinated debentures

     

    103,117

     

    		 

     

    7,720

     

    		 

    9.87

    %

    		 

     

    101,882

     

    		 

     

    3,911

     

    		 

    5.06

    %

    Total interest bearing liabilities

    $

    13,073,812

     

    		 

    $

    379,709

     

    		 

    3.88

    %

    		 

    $

    10,107,610

     

    		 

    $

    63,978

     

    		 

    0.85

    %

    Noninterest bearing demand deposits

     

    4,445,740

     

    		 

     

    		 

     

    		 

     

    5,702,734

     

    		 

     

    		 

     

    Total funding liabilities/cost of funds

    $

    17,519,552

     

    		 

     

    		 

    2.90

    %

    		 

    $

    15,810,344

     

    		 

     

    		 

    0.54

    %

    Net interest income/net interest spread

     

    		 

    $

    399,945

     

    		 

    1.67

    %

    		 

     

    		 

    $

    427,900

     

    		 

    3.01

    %

    Net interest margin

     

    		 

     

    		 

    2.84

    %

    		 

     

    		 

     

    		 

    3.36

    %

     

     

    		 

     

    		 

     

    		 

     

    		 

     

    		 

     

    Cost of deposits:

     

    		 

     

    		 

     

    		 

     

    		 

     

    		 

     

    Noninterest bearing demand deposits

    $

    4,445,740

     

    		 

    $

    —

     

    		 

    —

    %

    		 

    $

    5,702,734

     

    		 

    $

    —

     

    		 

    —

    %

    Interest bearing deposits

     

    11,308,269

     

    		 

     

    319,926

     

    		 

    3.78

    %

    		 

     

    9,365,315

     

    		 

     

    51,563

     

    		 

    0.74

    %

    Total deposits

    $

    15,754,009

     

    		 

    $

    319,926

     

    		 

    2.72

    %

    		 

    $

    15,068,049

     

    		 

    $

    51,563

     

    		 

    0.46

    %

     

    Hope Bancorp, Inc.

    Selected Financial Data

    Unaudited (dollars in thousands)

     

     

    Three Months Ended

     

    Nine Months Ended

    AVERAGE BALANCES:

    9/30/2023

     

    6/30/2023

     

    % change

     

    9/30/2022

     

    % change

     

    9/30/2023

     

    9/30/2022

     

    % change

    Loans, including loans held for sale

    $

    14,550,106

     

    $

    15,105,212

     

    (4

    )%

     

    $

    14,925,298

     

    (3

    )%

     

    $

    14,961,058

     

    $

    14,378,774

     

    4

    %

    Investment securities

     

    2,275,133

     

     

     

    2,243,614

     

     

    1

    %

     

     

    2,366,696

     

     

    (4

    )%

     

     

    2,255,839

     

     

     

    2,469,858

     

     

    (9

    )%

    Interest earning cash and deposits at other banks

     

    2,106,469

     

     

     

    1,996,924

     

     

    5

    %

     

     

    54,870

     

     

    3739

    %

     

     

    1,531,561

     

     

     

    133,745

     

     

    1045

    %

    Interest earning assets

     

    18,979,024

     

     

     

    19,392,794

     

     

    (2

    )%

     

     

    17,399,718

     

     

    9

    %

     

     

    18,795,593

     

     

     

    17,045,919

     

     

    10

    %

    Total assets

     

    20,059,304

     

     

     

    20,468,810

     

     

    (2

    )%

     

     

    18,428,874

     

     

    9

    %

     

     

    19,875,322

     

     

     

    18,018,588

     

     

    10

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Interest bearing deposits

     

    11,395,468

     

     

     

    11,385,914

     

     

    —

    %

     

     

    9,726,190

     

     

    17

    %

     

     

    11,308,269

     

     

     

    9,365,315

     

     

    21

    %

    Interest bearing liabilities

     

    13,308,663

     

     

     

    13,762,922

     

     

    (3

    )%

     

     

    10,493,971

     

     

    27

    %

     

     

    13,073,812

     

     

     

    10,107,610

     

     

    29

    %

    Noninterest bearing demand deposits

     

    4,312,117

     

     

     

    4,366,868

     

     

    (1

    )%

     

     

    5,719,213

     

     

    (25

    )%

     

     

    4,445,740

     

     

     

    5,702,734

     

     

    (22

    )%

    Stockholders’ equity

     

    2,079,092

     

     

     

    2,072,859

     

     

    —

    %

     

     

    2,032,362

     

     

    2

    %

     

     

    2,066,157

     

     

     

    2,046,351

     

     

    1

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    LOAN PORTFOLIO COMPOSITION:

    9/30/2023

     

    6/30/2023

     

    % change

     

    9/30/2022

     

    % change

     

     

     

     

     

     

    Commercial real estate (“CRE”) loans

    $

    8,972,886

     

     

    $

    9,192,160

     

     

    (2

    )%

     

    $

    9,504,893

     

     

    (6

    )%

     

     

     

     

     

     

    Commercial and industrial (“C&I”) loans

     

    4,450,341

     

     

     

    4,805,126

     

     

    (7

    )%

     

     

    5,124,421

     

     

    (13

    )%

     

     

     

     

     

     

    Residential mortgage and other loans

     

    882,966

     

     

     

    867,524

     

     

    2

    %

     

     

    861,873

     

     

    2

    %

     

     

     

     

     

     

    Loans receivable

     

    14,306,193

     

     

     

    14,864,810

     

     

    (4

    )%

     

     

    15,491,187

     

     

    (8

    )%

     

     

     

     

     

     

    Allowance for credit losses

     

    (158,809

    )

     

     

    (172,996

    )

     

    (8

    )%

     

     

    (160,561

    )

     

    (1

    )%

     

     

     

     

     

     

    Loans receivable, net

    $

    14,147,384

     

     

    $

    14,691,814

     

     

    (4

    )%

     

    $

    15,330,626

     

     

    (8

    )%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    CRE LOANS BY PROPERTY TYPE:

    9/30/2023

     

    6/30/2023

     

    % change

     

    9/30/2022

     

    % change

     

     

     

     

     

     

    Multi-tenant retail

    $

    1,745,430

     

     

    $

    1,778,068

     

     

    (2

    )%

     

    $

    1,904,132

     

     

    (8

    )%

     

     

     

     

     

     

    Hotels/motels

     

    826,732

     

     

     

    868,286

     

     

    (5

    )%

     

     

    1,091,047

     

     

    (24

    )%

     

     

     

     

     

     

    Gas stations and car washes

     

    1,037,621

     

     

     

    1,042,290

     

     

    —

    %

     

     

    1,056,217

     

     

    (2

    )%

     

     

     

     

     

     

    Mixed-use facilities

     

    813,571

     

     

     

    834,948

     

     

    (3

    )%

     

     

    825,289

     

     

    (1

    )%

     

     

     

     

     

     

    Industrial warehouses

     

    1,254,643

     

     

     

    1,301,075

     

     

    (4

    )%

     

     

    1,271,104

     

     

    (1

    )%

     

     

     

     

     

     

    Multifamily

     

    1,234,934

     

     

     

    1,257,971

     

     

    (2

    )%

     

     

    1,199,320

     

     

    3

    %

     

     

     

     

     

     

    Single-tenant retail

     

    671,921

     

     

     

    690,418

     

     

    (3

    )%

     

     

    728,432

     

     

    (8

    )%

     

     

     

     

     

     

    Office

     

    454,695

     

     

     

    463,998

     

     

    (2

    )%

     

     

    432,586

     

     

    5

    %

     

     

     

     

     

     

    All other

     

    933,339

     

     

     

    955,106

     

     

    (2

    )%

     

     

    996,766

     

     

    (6

    )%

     

     

     

     

     

     

    Total CRE loans

    $

    8,972,886

     

     

    $

    9,192,160

     

     

    (2

    )%

     

    $

    9,504,893

     

     

    (6

    )%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    DEPOSIT COMPOSITION:

    9/30/2023

     

    6/30/2023

     

    % change

     

    9/30/2022

     

    % change

     

     

     

     

     

     

    Noninterest bearing demand deposits

    $

    4,249,788

     

     

    $

    4,229,247

     

     

    —

    %

     

    $

    5,590,952

     

     

    (24

    )%

     

     

     

     

     

     

    Money market and interest bearing demand

     

    4,424,918

     

     

     

    4,188,584

     

     

    6

    %

     

     

    5,885,093

     

     

    (25

    )%

     

     

     

     

     

     

    Savings deposits

     

    430,765

     

     

     

    224,495

     

     

    92

    %

     

     

    317,841

     

     

    36

    %

     

     

     

     

     

     

    Time deposits

     

    6,634,388

     

     

     

    6,977,026

     

     

    (5

    )%

     

     

    3,708,323

     

     

    79

    %

     

     

     

     

     

     

    Total deposits

    $

    15,739,859

     

     

    $

    15,619,352

     

     

    1

    %

     

    $

    15,502,209

     

     

    2

    %

     

     

     

     

     

     

     

    Hope Bancorp, Inc.

    Selected Financial Data

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

     

     

    Three Months Ended

     

     

     

     

     

     

     

     

    NEW LOAN ORIGINATIONS:

    9/30/2023

     

    6/30/2023

     

    9/30/2022

     

     

     

     

     

     

     

     

    CRE

    $

    46,011

     

     

    $

    115,444

     

     

    $

    500,826

     

     

     

     

     

     

     

     

     

    C&I

     

    201,420

     

     

     

    318,063

     

     

     

    732,341

     

     

     

     

     

     

     

     

     

    SBA loans

     

    48,987

     

     

     

    38,051

     

     

     

    47,428

     

     

     

     

     

     

     

     

     

    Residential mortgage and other loans

     

    32,920

     

     

     

    19,016

     

     

     

    68,099

     

     

     

     

     

     

     

     

     

    Total new loan originations

    $

    329,338

     

     

    $

    490,574

     

     

    $

    1,348,694

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    CAPITAL & CAPITAL RATIOS:

    9/30/2023

     

    6/30/2023

     

    9/30/2022

     

     

     

     

     

     

     

     

    Total stockholders’ equity

    $

    2,030,424

     

     

    $

    2,067,998

     

     

    $

    1,975,725

     

     

     

     

     

     

     

     

     

    Total capital

    $

    2,105,754

     

     

    $

    2,102,625

     

     

    $

    2,000,653

     

     

     

     

     

     

     

     

     

    Common equity tier 1 ratio

     

    11.67

    %

     

     

    11.05

    %

     

     

    10.32

    %

     

     

     

     

     

     

     

     

    Tier 1 capital ratio

     

    12.32

    %

     

     

    11.68

    %

     

     

    10.92

    %

     

     

     

     

     

     

     

     

    Total capital ratio

     

    13.23

    %

     

     

    12.64

    %

     

     

    11.72

    %

     

     

     

     

     

     

     

     

    Leverage ratio

     

    9.83

    %

     

     

    9.57

    %

     

     

    10.25

    %

     

     

     

     

     

     

     

     

    Total risk weighted assets

    $

    15,912,742

     

     

    $

    16,640,323

     

     

    $

    17,065,355

     

     

     

     

     

     

     

     

     

    Book value per common share

    $

    16.92

     

     

    $

    17.23

     

     

    $

    16.54

     

     

     

     

     

     

     

     

     

    TCE per share (1)

    $

    13.01

     

     

    $

    13.32

     

     

    $

    12.60

     

     

     

     

     

     

     

     

     

    TCE ratio (1)

     

    7.96

    %

     

     

    8.04

    %

     

     

    8.09

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1) TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended

     

    Nine Months Ended

    ALLOWANCE FOR CREDIT LOSSES CHANGES:

    9/30/2023

     

    6/30/2023

     

    3/31/2023

     

    12/31/2022

     

    9/30/2022

     

    9/30/2023

     

    9/30/2022

    Balance at beginning of period

    $

    172,996

     

     

    $

    163,544

     

     

    $

    162,359

     

     

    $

    160,561

     

     

    $

    151,580

     

     

    $

    162,359

     

     

    $

    140,550

     

    ASU 2022-02 day 1 adoption impact

     

    —

     

     

     

    —

     

     

     

    (407

    )

     

     

    —

     

     

     

    —

     

     

     

    (407

    )

     

     

    —

     

    Provision for credit losses

     

    16,800

     

     

     

    8,900

     

     

     

    1,700

     

     

     

    8,200

     

     

     

    9,200

     

     

     

    27,400

     

     

     

    1,400

     

    Recoveries

     

    2,938

     

     

     

    1,531

     

     

     

    387

     

     

     

    3,222

     

     

     

    331

     

     

     

    4,856

     

     

     

    21,376

     

    Charge offs

     

    (33,925

    )

     

     

    (979

    )

     

     

    (495

    )

     

     

    (9,624

    )

     

     

    (550

    )

     

     

    (35,399

    )

     

     

    (2,765

    )

    Balance at end of period

    $

    158,809

     

     

    $

    172,996

     

     

    $

    163,544

     

     

    $

    162,359

     

     

    $

    160,561

     

     

    $

    158,809

     

     

    $

    160,561

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    9/30/2023

     

    6/30/2023

     

    3/31/2023

     

    12/31/2022

     

    9/30/2022

     

     

     

     

    Allowance for unfunded loan commitments

    $

    3,143

     

     

    $

    3,081

     

     

    $

    2,971

     

     

    $

    1,351

     

     

    $

    1,231

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended

     

    Nine Months Ended

    NET LOAN CHARGE OFFS (RECOVERIES):

    9/30/2023

     

    6/30/2023

     

    3/31/2023

     

    12/31/2022

     

    9/30/2022

     

    9/30/2023

     

    9/30/2022

    CRE loans

    $

    (2,227

    )

     

    $

    438

     

     

    $

    (109

    )

     

    $

    2,022

     

     

    $

    9

     

     

    $

    (1,898

    )

     

    $

    (16,917

    )

    C&I loans

     

    33,145

     

     

     

    (1,091

    )

     

     

    196

     

     

     

    4,174

     

     

     

    115

     

     

     

    32,250

     

     

     

    (1,875

    )

    Residential mortgage and other loans

     

    69

     

     

     

    101

     

     

     

    21

     

     

     

    206

     

     

     

    95

     

     

     

    191

     

     

     

    181

     

    Net loan charge offs (recoveries)

    $

    30,987

     

     

    $

    (552

    )

     

    $

    108

     

     

    $

    6,402

     

     

    $

    219

     

     

    $

    30,543

     

     

    $

    (18,611

    )

    Net charge offs (recoveries)/average loans receivable (annualized)

     

    0.85

    %

     

     

    (0.01

    )%

     

     

    —

    %

     

     

    0.17

    %

     

     

    0.01

    %

     

     

    0.27

    %

     

     

    (0.17

    )%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    NONPERFORMING ASSETS:

    9/30/2023

     

    6/30/2023

     

    3/31/2023

     

    12/31/2022

     

    9/30/2022

    Loans on nonaccrual status (1)

    $

    39,081

     

     

    $

    61,252

     

     

    $

    78,861

     

     

    $

    49,687

     

     

    $

    64,571

     

    Accruing delinquent loans past due 90 days or more

     

    21,579

     

     

     

    15,182

     

     

     

    364

     

     

     

    401

     

     

     

    5,306

     

    Accruing troubled debt restructured loans (2)

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

    16,931

     

     

     

    25,631

     

    Total nonperforming loans

     

    60,660

     

     

     

    76,434

     

     

     

    79,225

     

     

     

    67,019

     

     

     

    95,508

     

    Other real estate owned (“OREO”)

     

    1,043

     

     

     

    938

     

     

     

    938

     

     

     

    2,418

     

     

     

    1,480

     

    Total nonperforming assets

    $

    61,703

     

     

    $

    77,372

     

     

    $

    80,163

     

     

    $

    69,437

     

     

    $

    96,988

     

     

     

     

     

     

     

     

     

     

     

    Nonperforming assets/total assets

     

    0.31

    %

     

     

    0.38

    %

     

     

    0.39

    %

     

     

    0.36

    %

     

     

    0.51

    %

    Nonperforming assets/loans receivable & OREO

     

    0.43

    %

     

     

    0.52

    %

     

     

    0.53

    %

     

     

    0.45

    %

     

     

    0.63

    %

    Nonperforming assets/total capital

     

    3.04

    %

     

     

    3.74

    %

     

     

    3.89

    %

     

     

    3.44

    %

     

     

    4.91

    %

    Nonperforming loans/loans receivable

     

    0.42

    %

     

     

    0.51

    %

     

     

    0.53

    %

     

     

    0.44

    %

     

     

    0.62

    %

    Nonaccrual loans/loans receivable

     

    0.27

    %

     

     

    0.41

    %

     

     

    0.52

    %

     

     

    0.32

    %

     

     

    0.42

    %

    Allowance for credit losses/loans receivable

     

    1.11

    %

     

     

    1.16

    %

     

     

    1.09

    %

     

     

    1.05

    %

     

     

    1.04

    %

    Allowance for credit losses/nonperforming loans

     

    261.80

    %

     

     

    226.33

    %

     

     

    206.43

    %

     

     

    242.26

    %

     

     

    168.11

    %

     

     

     

     

     

     

     

     

     

     

    (1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $12.1 million, $11.9 million, $7.6 million, $9.8 million, and $9.9 million, at September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively.

    (2) The Company adopted ASU 2022-02 in 2023, which eliminated the concept of TDR from GAAP; therefore, accruing TDR loans are no longer included in nonperforming loans.

     

     

     

     

     

     

     

     

     

     

    NONACCRUAL LOANS BY TYPE:

    9/30/2023

     

    6/30/2023

     

    3/31/2023

     

    12/31/2022

     

    9/30/2022

    CRE loans

    $

    26,687

     

     

    $

    29,270

     

     

    $

    44,376

     

     

    $

    33,915

     

     

    $

    47,807

     

    C&I loans

     

    4,234

     

     

     

    23,042

     

     

     

    26,191

     

     

     

    5,620

     

     

     

    7,675

     

    Residential mortgage and other loans

     

    8,160

     

     

     

    8,940

     

     

     

    8,294

     

     

     

    10,152

     

     

     

    9,089

     

    Total nonaccrual loans

    $

    39,081

     

     

    $

    61,252

     

     

    $

    78,861

     

     

    $

    49,687

     

     

    $

    64,571

     

     

     

     

     

     

     

     

     

     

     

    ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:

    9/30/2023

     

    6/30/2023

     

    3/31/2023

     

    12/31/2022

     

    9/30/2022

    30 - 59 days past due

    $

    2,906

     

    $

    9,295

     

    $

    7,662

     

    $

    7,049

     

    $

    13,092

    60 - 89 days past due

     

    506

     

     

     

    178

     

     

     

    249

     

     

     

    2,243

     

     

     

    4,933

     

    Total accruing delinquent loans 30-89 days past due

    $

    3,412

     

     

    $

    9,473

     

     

    $

    7,911

     

     

    $

    9,292

     

     

    $

    18,025

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

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

    9/30/2023

     

    6/30/2023

     

    3/31/2023

     

    12/31/2022

     

    9/30/2022

    CRE loans

    $

    611

     

     

    $

    7,339

     

     

    $

    3,652

     

     

    $

    4,115

     

     

    $

    9,694

     

    C&I loans

     

    1,168

     

     

     

    990

     

     

     

    419

     

     

     

    3,300

     

     

     

    6,165

     

    Residential mortgage and other loans

     

    1,633

     

     

     

    1,144

     

     

     

    3,840

     

     

     

    1,877

     

     

     

    2,166

     

    Total accruing delinquent loans 30-89 days past due

    $

    3,412

     

     

    $

    9,473

     

     

    $

    7,911

     

     

    $

    9,292

     

     

    $

    18,025

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    CRITICIZED LOANS:

    9/30/2023

     

    6/30/2023

     

    3/31/2023

     

    12/31/2022

     

    9/30/2022

    Special mention loans

    $

    186,600

     

     

    $

    210,806

     

     

    $

    166,472

     

     

    $

    157,263

     

     

    $

    79,399

     

    Substandard loans

     

    174,161

     

     

     

    134,203

     

     

     

    138,224

     

     

     

    104,073

     

     

     

    204,713

     

    Total criticized loans

    $

    360,761

     

     

    $

    345,009

     

     

    $

    304,696

     

     

    $

    261,336

     

     

    $

    284,112

     

     

    Hope Bancorp, Inc.

    Selected Financial Data

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

    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. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended

     

    Nine Months Ended

    RETURN ON AVERAGE TANGIBLE COMMON EQUITY

    9/30/2023

     

    6/30/2023

     

    9/30/2022

     

    9/30/2023

     

    9/30/2022

    Average stockholders’ equity

    $

    2,079,092

     

     

    $

    2,072,859

     

     

    $

    2,032,362

     

     

    $

    2,066,157

     

     

    $

    2,046,351

     

    Less: Average goodwill and core deposit intangible assets, net

     

    (469,079

    )

     

     

    (469,515

    )

     

     

    (470,941

    )

     

     

    (469,525

    )

     

     

    (471,424

    )

    Average TCE

    $

    1,610,013

     

     

    $

    1,603,344

     

     

    $

    1,561,421

     

     

    $

    1,596,632

     

     

    $

    1,574,927

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net income

    $

    30,049

     

     

    $

    38,022

     

     

    $

    53,748

     

     

    $

    107,192

     

     

    $

    166,574

     

    ROTCE (annualized)

     

    7.47

    %

     

     

    9.49

    %

     

     

    13.77

    %

     

     

    8.95

    %

     

     

    14.10

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    TANGIBLE COMMON EQUITY

    9/30/2023

     

    6/30/2023

     

    9/30/2022

     

     

     

     

     

     

     

     

    Total stockholders’ equity

    $

    2,030,424

     

     

    $

    2,067,998

     

     

    $

    1,975,725

     

     

     

     

     

     

     

     

     

    Less: Goodwill and core deposit intangible assets, net

     

    (468,832

    )

     

     

    (469,280

    )

     

     

    (470,662

    )

     

     

     

     

     

     

     

     

    TCE

    $

    1,561,592

     

     

    $

    1,598,718

     

     

    $

    1,505,063

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Total assets

    $

    20,076,364

     

     

    $

    20,366,138

     

     

    $

    19,083,388

     

     

     

     

     

     

     

     

     

    Less: Goodwill and core deposit intangible assets, net

     

    (468,832

    )

     

     

    (469,280

    )

     

     

    (470,662

    )

     

     

     

     

     

     

     

     

    Tangible assets

    $

    19,607,532

     

     

    $

    19,896,858

     

     

    $

    18,612,726

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    TCE ratio

     

    7.96

    %

     

     

    8.04

    %

     

     

    8.09

    %

     

     

     

     

     

     

     

     

    Common shares outstanding

     

    120,026,220

     

     

     

    120,014,888

     

     

     

    119,479,253

     

     

     

     

     

     

     

     

     

    TCE per share

    $

    13.01

     

     

    $

    13.32

     

     

    $

    12.60

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended

     

    Nine Months Ended

    PRE-PROVISION NET REVENUE

    9/30/2023

     

    6/30/2023

     

    9/30/2022

     

    9/30/2023

     

    9/30/2022

    Net interest income before provision for credit losses

    $

    135,378

     

     

    $

    130,689

     

     

    $

    153,186

     

     

    $

    399,945

     

     

    $

    427,900

     

    Noninterest income

     

    8,305

     

     

     

    17,014

     

     

     

    13,355

     

     

     

    36,297

     

     

     

    39,287

     

    Revenue

     

    143,683

     

     

     

    147,703

     

     

     

    166,541

     

     

     

    436,242

     

     

     

    467,187

     

    Less: Noninterest expense

     

    86,873

     

     

     

    87,333

     

     

     

    83,914

     

     

     

    264,560

     

     

     

    239,652

     

    PPNR

    $

    56,810

     

     

    $

    60,370

     

     

    $

    82,627

     

     

    $

    171,682

     

     

    $

    227,535

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Average assets

    $

    20,059,304

     

     

    $

    20,468,810

     

     

    $

    18,428,874

     

     

    $

    19,875,322

     

     

    $

    18,018,588

     

    ROA (PPNR) (annualized)

     

    1.13

    %

     

     

    1.18

    %

     

     

    1.79

    %

     

     

    1.15

    %

     

     

    1.68

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Average stockholders’ equity

     

    2,079,092

     

     

     

    2,072,859

     

     

     

    2,032,362

     

     

     

    2,066,157

     

     

     

    2,046,351

     

    ROE (PPNR) (annualized)

     

    10.93

    %

     

     

    11.65

    %

     

     

    16.26

    %

     

     

    11.08

    %

     

     

    14.83

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     


    The Hope Bancorp Stock at the time of publication of the news with a raise of +0,91 % to 8,30EUR on Lang & Schwarz stock exchange (23. Oktober 2023, 12:30 Uhr).


    Business Wire (engl.)
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    Hope Bancorp Reports 2023 Third Quarter Financial Results; Announces Strategic Reorganization Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its third quarter and nine months ended September 30, 2023. For the three months ended September 30, …