Hope Bancorp Reports 2020 Third Quarter Financial Results

Rhea-AI Summary

Hope Bancorp, Inc. (NASDAQ: HOPE) reported Q3 2020 net income of $30.5 million, or $0.25 per share, showing a sequential increase from Q2 2020 but a decline from $42.6 million in Q3 2019. Key highlights include a 7% rise in net interest income to $117.6 million, driven by lower deposit costs, and an improvement in efficiency ratio to 54.31%. The allowance for credit losses increased to 1.37% of total loans, reflecting ongoing economic challenges. Nonperforming loans dropped 16% to $106.2 million, indicating stability amid the pandemic.

Positive

• Net interest income increased 7% to $117.6 million quarter-over-quarter.
• Net interest margin expanded by 12 basis points to 2.91%.
• Noninterest bearing deposits rose 11%, accounting for 32% of total deposits.
• Efficiency ratio improved to 54.31%, down from 55.37%.

Negative

• Net income decreased from $42.6 million in Q3 2019 to $30.5 million in Q3 2020.
• Allowance for credit losses increased to 1.37%, up from 1.26% in Q2 2020.

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

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

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

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

Q3 2020 Highlights

• Net interest income before provision for credit losses increased 7% to $117.6 million from Q2 2020, largely benefiting from meaningful reductions in interest expense due to lower cost of deposits.
• Net interest margin expanded 12 basis points quarter-over-quarter benefiting from continued reduction in deposit costs and redeployment of excess liquidity.
• Noninterest bearing deposits increased 11% by $452 million quarter-over-quarter and accounted for 32% of total deposits at quarter end.
• Favorable mix-shift to lower-cost core deposits continued and total deposit costs decreased 23 basis points quarter-over-quarter.
• Loan originations of $782 million included $301 million in utilization of new warehouse mortgage lines and contributed to a 2% increase in loans receivable quarter-over-quarter, or 8% annualized.
• Noninterest expenses were well contained, and efficiency ratio improved to 54.31% from 55.37% in Q2 2020.
• ROA and ROTCE improved to 0.72% and 7.80%, respectively, from 0.64% and 6.94% in Q2 2020.
• Nonperforming loans decreased 16% quarter-over-quarter to $106.2 million, or 0.81% of loans receivable.
• Allowance for credit losses increased to 1.37% of loans receivable at September 30, 2020 from 1.26% at June 30, 2020.

Financial Highlights

(dollars in thousands, except per share data) (unaudited)	At or for the Three Months Ended
	9/30/2020				6/30/2020				9/30/2019
Net income	$	30,490			$	26,753			$	42,592
Diluted earnings per share	$	0.25			$	0.22			$	0.34
Net interest income before provision for credit losses	$	117,637			$	109,814			$	116,258
Net interest margin		2.91	%			2.79	%			3.25	%
Noninterest income	$	17,513			$	11,240			$	12,995
Noninterest expense	$	73,406			$	67,030			$	69,995
Net loans receivable	$	12,940,376			$	12,710,063			$	12,010,800
Deposits	$	14,008,356			$	14,123,532			$	12,234,750
Total cost of deposits		0.64	%			0.87	%			1.62	%
Nonaccrual loans (1) (2)	$	69,205			$	82,137			$	42,235
Nonperforming loans to loans receivable (1) (2)		0.81	%			0.98	%			0.64	%
ACL to loans receivable (3)		1.37	%			1.26	%			0.78	%
ACL to nonaccrual loans (1) (2) (3)		259.88	%			196.95	%			222.28	%
ACL to nonperforming assets (1) (2) (3)		144.36	%			109.62	%			97.06	%
Provision for credit losses	$	22,000			$	17,500			$	2,100
Net charge offs	$	3,922			$	652			$	1,822
Return on average assets (“ROA”)		0.72	%			0.64	%			1.12	%
Return on average equity (“ROE”)		5.98	%			5.31	%			8.47	%
Return on average tangible common equity (“ROTCE”) (4)		7.80	%			6.94	%			11.11	%
Noninterest expense / average assets		1.73	%			1.60	%			1.85	%
Efficiency ratio		54.31	%			55.37	%			54.15	%

(1)	Excludes delinquent SBA loans that are guaranteed and currently in liquidation.
(2)	Excludes purchased credit impaired (“PCI”) loans for September 30, 2019.
(3)	Allowance for credit losses for current-year periods were calculated under the CECL methodology while allowance for loan losses for the prior-year period was calculated under the incurred loss methodology.
(4)	Return on average tangible common equity is a non-GAAP financial measure. A reconciliation of the Company’s return on average tangible common equity is provided in the accompanying financial information on Table Page 10.

Operating Results for the 2020 Third Quarter

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

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

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

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

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

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

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

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

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

Balance Sheet Summary

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

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

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

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

(dollars in thousands) (unaudited)	9/30/2020				6/30/2020				% change			9/30/2019				% change
Noninterest bearing demand deposits	$	4,488,529			$	4,036,383			11	%		$	3,033,371			48	%
Money market and other	4,763,893				4,831,679				(1)	%		3,752,274				27	%
Saving deposits	308,943				296,614				4	%		259,454				19	%
Time deposits	4,446,991				4,958,856				(10)	%		5,189,651				(14)	%
Total deposit balances	$	14,008,356			$	14,123,532			(1)	%		$	12,234,750			14	%

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

	Deposit Breakdown									Cost of Deposits
(dollars in thousands) (unaudited)	9/30/2020			6/30/2020			9/30/2019			Q3 2020			Q2 2020			Q3 2019
Noninterest bearing demand deposits	32.1	%		28.6	%		24.8	%		—	%		—	%		—	%
Money market and other	34.0	%		34.2	%		30.7	%		0.53	%		0.62	%		1.82	%
Saving deposits	2.2	%		2.1	%		2.1	%		1.19	%		1.22	%		1.06	%
Time deposits	31.7	%		35.1	%		42.4	%		1.30	%		1.71	%		2.41	%
Total deposit balances	100.0	%		100.0	%		100.0	%		0.64	%		0.87	%		1.62	%

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

Allowance for Credit Losses

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

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

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

(dollars in thousands) (unaudited)	9/30/2020			6/30/2020			9/30/2019
Allowance for credit losses	$	179,849		$	161,771		$	93,882
Allowance for credit loss/loans receivable		1.37%			1.26%			0.78%
Allowance for credit losses/nonperforming loans		169.40%			127.79%			121.37%

Credit Quality

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

(dollars in thousands) (unaudited)	9/30/2020				6/30/2020				9/30/2019
Loans on nonaccrual status (1)	$	69,205			$	82,137			$	42,235
Delinquent loans 90 days or more on accrual status (2)		1,537				430				398
Accruing troubled debt restructured loans		35,429				44,026				34,717
Total nonperforming loans		106,171				126,593				77,350
Other real estate owned		18,410				20,983				19,374
Total nonperforming assets	$	124,581			$	147,576			$	96,724

(1)	Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $26.2 million, $30.3 million and $37.3 million, at September 30, 2020, June 30, 2020 and September 30, 2019, respectively.
(2)	Excludes PCI loans totaling $15.5 million at September 30, 2019.

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

(dollars in thousands) (unaudited)	9/30/2020			6/30/2020			9/30/2019
Special Mention	$	153,388		$	127,149		$	139,848
Classified		318,542			299,368			268,622
Criticized	$	471,930		$	426,517		$	408,470

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

Capital

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

Hope Bancorp, Inc. (unaudited)	9/30/2020		6/30/2020		9/30/2019		Minimum Guideline for “Well-Capitalized” Bank
Common Equity Tier 1 Capital	11.36%		11.50%		11.89%		6.50%
Tier 1 Leverage Ratio	10.02%		10.08%		11.18%		5.00%
Tier 1 Risk-Based Ratio	12.09%		12.24%		12.65%		8.00%
Total Risk-Based Ratio	13.19%		13.23%		13.38%		10.00%

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

(unaudited)	9/30/2020		6/30/2020		9/30/2019
Tangible common equity per share (1)	$12.70		$12.62		$12.27
Tangible common equity to tangible assets (2)	9.63%		9.32%		10.43%

(1)

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

(2)

Tangible assets represent total assets less goodwill and net other intangible assets. Tangible common equity to tangible assets is the ratio of tangible common equity over tangible assets. Tangible common equity to tangible assets is a non-GAAP financial measure. A reconciliation of the Company’s total assets to tangible assets is provided in the accompanying financial information on Table Page 10.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Wednesday, October 21, 2020 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its third quarter ended September 30, 2020. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available in the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through October 28, 2020, replay access code 10148641.

About Hope Bancorp, Inc.

Hope Bancorp, Inc. is the holding company of Bank of Hope, the first and only super regional Korean-American bank in the United States with $16.7 billion in total assets as of September 30, 2020. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 58 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.

Forward-Looking Statements

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

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
Assets:	9/30/2020					6/30/2020					% change				12/31/2019					% change				9/30/2019					% change
Cash and due from banks	$	629,133				$	1,468,949				(57	)	%		$	698,567				(10	)	%		$	549,356				15		%
Securities available for sale, at fair value	2,060,991					1,887,604					9		%		1,715,987					20		%		1,772,322					16		%
Federal Home Loan Bank (“FHLB”) stock and other investments	97,305					98,357					(1	)	%		97,659					—		%		98,848					(2	)	%
Loans held for sale, at the lower of cost or fair value	9,170					11,350					(19	)	%		54,271					(83	)	%		29,627					(69	)	%
Loans receivable	13,120,225					12,871,834					2		%		12,276,007					7		%		12,104,682					8		%
Allowance for credit losses	(179,849		)			(161,771		)			11		%		(94,144		)			91		%		(93,882		)			92		%
Net loans receivable	12,940,376					12,710,063					2		%		12,181,863					6		%		12,010,800					8		%
Accrued interest receivable	57,989					52,859					10		%		30,772					88		%		29,743					95		%
Premises and equipment, net	49,552					51,029					(3	)	%		52,012					(5	)	%		52,604					(6	)	%
Bank owned life insurance	77,388					77,050					—		%		76,339					1		%		75,968					2		%
Goodwill	464,450					464,450					—		%		464,450					—		%		464,450					—		%
Servicing assets	13,718					14,164					(3	)	%		16,417					(16	)	%		17,865					(23	)	%
Other intangible assets, net	10,239					10,770					(5	)	%		11,833					(13	)	%		12,390					(17	)	%
Other assets	323,456					322,417					—		%		267,270					21		%		265,905					22		%
Total assets	$	16,733,767				$	17,169,062				(3	)	%		$	15,667,440				7		%		$	15,379,878				9		%
Liabilities:
Deposits	$	14,008,356				$	14,123,532				(1	)	%		$	12,527,364				12		%		$	12,234,750				14		%
FHLB advances	200,000					500,000					(60	)	%		625,000					(68	)	%		625,000					(68	)	%
Convertible notes, net	203,270					201,987					1		%		199,458					2		%		198,211					3		%
Subordinated debentures	103,889					103,602					—		%		103,035					1		%		102,755					1		%
Accrued interest payable	21,991					26,093					(16	)	%		33,810					(35	)	%		38,197					(42	)	%
Other liabilities	155,700					183,072					(15	)	%		142,762					9		%		149,681					4		%
Total liabilities	$	14,693,206				$	15,138,286				(3	)	%		$	13,631,429				8		%		$	13,348,594				10		%
Stockholders’ Equity:
Common stock, $0.001 par value	$	136				$	136				—		%		$	136				—		%		$	136				—		%
Capital surplus	1,432,773					1,430,757					—		%		1,428,066					—		%		1,426,666					—		%
Retained earnings	774,970					761,734					2		%		762,480					2		%		737,209					5		%
Treasury stock, at cost	(200,000		)			(200,000		)			—		%		(163,820		)			22		%		(150,000		)			33		%
Accumulated other comprehensive gain, net	32,682					38,149					(14	)	%		9,149					257		%		17,273					89		%
Total stockholders’ equity	2,040,561					2,030,776					—		%		2,036,011					—		%		2,031,284					—		%
Total liabilities and stockholders’ equity	$	16,733,767				$	17,169,062				(3	)	%		$	15,667,440				7		%		$	15,379,878				9		%
Common stock shares - authorized	150,000,000					150,000,000									150,000,000									150,000,000
Common stock shares - outstanding	123,260,760					123,239,276									125,756,543									126,697,925
Treasury stock shares	12,661,581					12,661,581									9,945,547									9,002,453

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
	Three Months Ended																					Nine Months Ended
	9/30/2020				6/30/2020				% change				9/30/2019					% change				9/30/2020				9/30/2019					% change
Interest and fees on loans	$	134,430			$	134,190			—		%		$	158,115				(15	)	%		$	422,850			$	474,878				(11	)	%
Interest on securities	9,848				9,891				—		%		11,373					(13	)	%		30,348				35,558					(15	)	%
Interest on federal funds sold and other investments	942				980				(4	)	%		2,929					(68	)	%		3,951				8,577					(54	)	%
Total interest income	145,220				145,061				—		%		172,417					(16	)	%		457,149				519,013					(12	)	%
Interest on deposits	22,871				29,451				(22	)	%		49,057					(53	)	%		93,435				144,730					(35	)	%
Interest on other borrowings and convertible notes	4,712				5,796				(19	)	%		7,102					(34	)	%		16,972				21,196					(20	)	%
Total interest expense	27,583				35,247				(22	)	%		56,159					(51	)	%		110,407				165,926					(33	)	%
Net interest income before provision for credit losses	117,637				109,814				7		%		116,258					1		%		346,742				353,087					(2	)	%
Provision for credit losses	22,000				17,500				26		%		2,100					948		%		67,500				6,300					971		%
Net interest income after provision for credit losses	95,637				92,314				4		%		114,158					(16	)	%		279,242				346,787					(19	)	%
Service fees on deposit accounts	2,736				2,583				6		%		4,690					(42	)	%		9,452				13,423					(30	)	%
International service fees	987				667				48		%		1,193					(17	)	%		2,443				3,146					(22	)	%
Loan servicing fees, net	772				1,106				(30	)	%		189					308		%		2,243				1,656					35		%
Wire transfer fees	892				820				9		%		1,058					(16	)	%		2,710				3,458					(22	)	%
Net gains on sales of other loans	2,853				1,678				70		%		804					255		%		6,386				2,611					145		%
Net gains on sales of securities available for sale	7,531				—				100		%		153					4,822		%		7,531				282					2,571		%
Other income and fees	1,742				4,386				(60	)	%		4,908					(65	)	%		11,252				12,128					(7	)	%
Total noninterest income	17,513				11,240				56		%		12,995					35		%		42,017				36,704					14		%
Salaries and employee benefits	40,659				38,850				5		%		41,607					(2	)	%		122,011				121,333					1		%
Occupancy	7,264				7,043				3		%		7,703					(6	)	%		21,717				23,219					(6	)	%
Furniture and equipment	4,513				4,654				(3	)	%		3,851					17		%		13,426				11,323					19		%
Advertising and marketing	1,601				1,315				22		%		2,377					(33	)	%		4,589				6,684					(31	)	%
Data processing and communications	2,204				2,274				(3	)	%		2,821					(22	)	%		7,109				8,364					(15	)	%
Professional fees	1,513				1,510				—		%		5,241					(71	)	%		6,323				16,580					(62	)	%
FDIC assessment	1,167				1,652				(29	)	%		—					100		%		4,378				3,110					41		%
Credit related expenses	1,793				1,361				32		%		1,031					74		%		4,816				3,258					48		%
OREO expense (income), net	1,770				1,338				32		%		(743		)			N/A				3,951				(812		)			N/A
FHLB prepayment fee	3,584				—				100		%		—					100		%		3,584				—					100		%
Other	7,338				7,033				4		%		6,107					20		%		20,672				19,140					8		%
Total noninterest expense	73,406				67,030				10		%		69,995					5		%		212,576				212,199					—		%
Income before income taxes	39,744				36,524				9		%		57,158					(30	)	%		108,683				171,292					(37	)	%
Income tax provision	9,254				9,771				(5	)	%		14,566					(36	)	%		25,487				43,261					(41	)	%
Net income	$	30,490			$	26,753			14		%		$	42,592				(28	)	%		$	83,196			$	128,031				(35	)	%
Earnings Per Common Share:
Basic	$	0.25			$	0.22							$	0.34								$	0.67			$	1.01
Diluted	$	0.25			$	0.22							$	0.34								$	0.67			$	1.01
Weighted Average Shares Outstanding:
Basic	123,251,336				123,200,127								126,685,921									123,581,055				126,661,798
Diluted	123,536,765				123,430,891								127,007,469									123,895,084				126,895,970

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
	For the Three Months Ended (Annualized)												For the Nine Months Ended (Annualized)
Profitability measures:	9/30/2020				6/30/2020				9/30/2019				9/30/2020				9/30/2019
ROA	0.72		%		0.64		%		1.12		%		0.68		%		1.12		%
ROE	5.98		%		5.31		%		8.47		%		5.47		%		8.69		%
ROTCE (1)	7.80		%		6.94		%		11.11		%		7.14		%		11.48		%
Net interest margin	2.91		%		2.79		%		3.25		%		2.99		%		3.31		%
Efficiency ratio	54.31		%		55.37		%		54.15		%		54.68		%		54.44		%
Noninterest expense / average assets	1.73		%		1.60		%		1.85		%		1.73		%		1.86		%
(1) Average tangible equity is calculated by subtracting average goodwill and average core deposit intangible assets from average stockholders’ equity. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position.
	Three Months Ended												Nine Months Ended
Pre-tax acquisition accounting adjustments and merger-related expenses:	9/30/2020				6/30/2020				9/30/2019				9/30/2020				9/30/2019
Accretion on purchased non-impaired loans	$	747			$	658			$	2,046			$	2,464			$	6,011
Accretion on purchased credit deteriorated/purchased credit impaired loans	4,584				3,046				5,234				17,079				17,916
Amortization of premium on low income housing tax credits	(71)				(70)				(75)				(212)				(227)
Amortization of premium on acquired FHLB borrowings	—				—				—				—				1,280
Accretion of discount on acquired subordinated debt	(287)				(284)				(278)				(854)				(826)
Amortization of core deposit intangibles	(531)				(532)				(557)				(1,594)				(1,671)
Total acquisition accounting adjustments	$	4,442			$	2,818			$	6,370			$	16,883			$	22,483

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
	Three Months Ended
	9/30/2020											6/30/2020											9/30/2019
					Interest				Annualized							Interest				Annualized							Interest				Annualized
	Average				Income/				Average			Average				Income/				Average			Average				Income/				Average
	Balance				Expense				Yield/Cost			Balance				Expense				Yield/Cost			Balance				Expense				Yield/Cost
INTEREST EARNING ASSETS:
Loans, including loans held for sale	$	12,728,558			$	134,430			4.20	%		$	12,755,088			$	134,190			4.23	%		$	11,911,658			$	158,115			5.27	%
Securities available for sale	2,010,907				9,848				1.95	%		1,750,156				9,891				2.27	%		1,798,239				11,373				2.51	%
FHLB stock and other investments	1,342,641				942				0.28	%		1,317,049				980				0.30	%		482,952				2,929				2.41	%
Total interest earning assets	$	16,082,106			$	145,220			3.59	%		$	15,822,293			$	145,061			3.69	%		$	14,192,849			$	172,417			4.82	%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing	$	4,895,101			$	6,546			0.53	%		$	4,903,786			$	7,563			0.62	%		$	3,450,749			$	15,802			1.82	%
Savings	302,882				907				1.19	%		284,050				862				1.22	%		252,780				675				1.06	%
Time deposits	4,703,640				15,418				1.30	%		4,954,446				21,026				1.71	%		5,368,753				32,580				2.41	%
Total interest bearing deposits	9,901,623				22,871				0.92	%		10,142,282				29,451				1.17	%		9,072,282				49,057				2.15	%
FHLB advances	353,587				1,323				1.49	%		593,407				2,238				1.52	%		632,500				3,112				1.95	%
Convertible notes, net	202,470				2,370				4.58	%		201,169				2,358				4.64	%		197,410				2,322				4.60	%
Subordinated debentures	99,819				1,019				3.99	%		99,534				1,200				4.77	%		98,690				1,668				6.61	%
Total interest bearing liabilities	$	10,557,499			$	27,583			1.04	%		$	11,036,392			$	35,247			1.28	%		$	10,000,882			$	56,159			2.23	%
Noninterest bearing demand deposits	4,239,108											3,510,783											2,958,233
Total funding liabilities/cost of funds	$	14,796,607							0.74	%		$	14,547,175							0.97	%		$	12,959,115							1.72	%
Net interest income/net interest spread					$	117,637			2.55	%						$	109,814			2.41	%						$	116,258			2.59	%
Net interest margin									2.91	%										2.79	%										3.25	%
Cost of deposits:
Noninterest bearing demand deposits	$	4,239,108			$	—			—	%		$	3,510,783			$	—			—	%		$	2,958,233			$	—			—	%
Interest bearing deposits	9,901,623				22,871				0.92	%		10,142,282				29,451				1.17	%		9,072,282				49,057				2.15	%
Total deposits	$	14,140,731			$	22,871			0.64	%		$	13,653,065			$	29,451			0.87	%		$	12,030,515			$	49,057			1.62	%

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
	Nine Months Ended
	9/30/2020												9/30/2019
					Interest				Annualized										Interest						Annualized
	Average				Income/				Average				Average						Income/						Average
	Balance				Expense				Yield/Cost				Balance						Expense						Yield/Cost
INTEREST EARNING ASSETS:
Loans, including loans held for sale	$	12,581,703			$	422,850			4.49	%			$		11,985,936				$		474,878				5.30		%
Securities available for sale	1,825,046				30,348				2.22	%			1,810,068						35,558						2.63		%
FHLB stock and other investments	1,060,699				3,951				0.50	%			450,028						8,577						2.55		%
Total interest earning assets	$	15,467,448			$	457,149			3.95	%			$		14,246,032				$		519,013				4.87		%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing	$	4,668,594			$	28,988			0.83	%			$		3,197,313				$		42,807				1.79		%
Savings	287,060				2,578				1.20	%			234,203						1,848						1.05		%
Time deposits	4,852,286				61,869				1.70	%			5,694,778						100,075						2.35		%
Total interest bearing deposits	9,807,940				93,435				1.27	%			9,126,294						144,730						2.12		%
FHLB advances	513,376				6,208				1.62	%			715,814						9,110						1.70		%
Convertible notes, net	201,204				7,074				4.62	%			196,217						6,930						4.66		%
Subordinated debentures	99,536				3,690				4.87	%			98,410						5,156						6.91		%
Total interest bearing liabilities	$	10,622,056			$	110,407			1.39	%			$		10,136,735				$		165,926				2.19		%
Noninterest bearing demand deposits	3,573,448												2,931,080
Total funding liabilities/cost of funds	$	14,195,504							1.04	%			$		13,067,815										1.70		%
Net interest income/net interest spread					$	346,742			2.56	%									$		353,087				2.68		%
Net interest margin									2.99	%															3.31		%
Cost of deposits:
Noninterest bearing demand deposits	$	3,573,448			$	—			—	%			$		2,931,080				$		—				—		%
Interest bearing deposits	9,807,940				93,435				1.27	%			9,126,294						144,730						2.12		%
Total deposits	$	13,381,388			$	93,435			0.93	%			$		12,057,374				$		144,730				1.60		%

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
	Three Months Ended																		Nine Months Ended
AVERAGE BALANCES:	9/30/2020				6/30/2020				% change			9/30/2019				% change			9/30/2020				9/30/2019				% change
Loans receivable, including loans held for sale	$	12,728,558			$	12,755,088			—	%		$	11,911,658			7	%		$	12,581,703			$	11,985,936			5	%
Investments	3,353,548				3,067,205				9	%		2,281,191				47	%		2,885,745				2,260,096				28	%
Interest earning assets	16,082,106				15,822,293				2	%		14,192,849				13	%		15,467,448				14,246,032				9	%
Total assets	17,020,795				16,759,147				2	%		15,154,661				12	%		16,411,150				15,209,668				8	%
Interest bearing deposits	9,901,623				10,142,282				(2)	%		9,072,282				9	%		9,807,940				9,126,294				7	%
Interest bearing liabilities	10,557,499				11,036,392				(4)	%		10,000,882				6	%		10,622,056				10,136,735				5	%
Noninterest bearing demand deposits	4,239,108				3,510,783				21	%		2,958,233				43	%		3,573,448				2,931,080				22	%
Stockholders’ equity	2,039,555				2,016,947				1	%		2,010,458				1	%		2,028,074				1,964,146				3	%
Net interest earning assets	5,524,607				4,785,901				15	%		4,191,967				32	%		4,845,392				4,109,297				18	%
LOAN PORTFOLIO COMPOSITION:	9/30/2020				6/30/2020				% change			12/31/2019				% change			9/30/2019				% change
Commercial loans	$	3,700,020			$	3,415,111			8	%		$	2,719,818			36	%		$	2,645,770			40		%
Real estate loans	8,713,536				8,686,939				—	%		8,666,901				1	%		8,586,989				1		%
Consumer and other loans	706,669				769,784				(8)	%		889,288				(21)	%		871,923				(19)		%
Loans, net of deferred loan fees and costs	13,120,225				12,871,834				2	%		12,276,007				7	%		12,104,682				8		%
Allowance for credit losses	(179,849)				(161,771)				11	%		(94,144)				91	%		(93,882)				92		%
Loan receivable, net	$	12,940,376			$	12,710,063			2	%		$	12,181,863			6	%		$	12,010,800			8		%
REAL ESTATE LOANS BY PROPERTY TYPE:	9/30/2020				6/30/2020				% change			12/31/2019				% change			9/30/2019				% change
Retail buildings	$	2,311,516			$	2,278,448			1	%		$	2,298,872			1	%		$	2,304,346			—		%
Hotels/motels	1,675,960				1,701,909				(2)	%		1,709,189				(2)	%		1,664,311				1		%
Gas stations/car washes	824,378				836,314				(1)	%		844,081				(2)	%		911,494				(10)		%
Mixed-use facilities	754,096				706,827				7	%		785,882				(4)	%		743,428				1		%
Warehouses	1,022,657				1,040,303				(2)	%		1,030,876				(1)	%		949,336				8		%
Multifamily	518,295				497,948				4	%		465,397				11	%		473,640				9		%
Other	1,606,634				1,625,190				(1)	%		1,532,604				5	%		1,540,434				4		%
Total	$	8,713,536			$	8,686,939			—	%		$	8,666,901			1	%		$	8,586,989			1		%
DEPOSIT COMPOSITION	9/30/2020				6/30/2020				% change			12/31/2019				% change			9/30/2019				% change
Noninterest bearing demand deposits	$	4,488,529			$	4,036,383			11	%		$	3,108,687			44	%		$	3,033,371			48		%
Money market and other	4,763,893				4,831,679				(1)	%		3,985,556				20	%		3,752,274				27		%
Saving deposits	308,943				296,614				4	%		274,151				13	%		259,454				19		%
Time deposits	4,446,991				4,958,856				(10)	%		5,158,970				(14)	%		5,189,651				(14)		%
Total deposit balances	$	14,008,356			$	14,123,532			(1)	%		$	12,527,364			12	%		$	12,234,750			14		%
DEPOSIT COMPOSITION (%)	9/30/2020				6/30/2020							12/31/2019							9/30/2019
Noninterest bearing demand deposits	32.1		%		28.6		%					24.8		%					24.8		%
Money market and other	34.0		%		34.2		%					31.8		%					30.7		%
Saving deposits	2.2		%		2.1		%					2.2		%					2.1		%
Time deposits	31.7		%		35.1		%					41.2		%					42.4		%
Total deposit balances	100.0		%		100.0		%					100.0		%					100.0		%

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
CAPITAL RATIOS:	9/30/2020				6/30/2020				12/31/2019				9/30/2019
Total stockholders’ equity	$	2,040,561			$	2,030,776			$	2,036,011			$	2,031,284
Common equity tier 1 ratio	11.36		%		11.50		%		11.76		%		11.89		%
Tier 1 risk-based capital ratio	12.09		%		12.24		%		12.51		%		12.65		%
Total risk-based capital ratio	13.19		%		13.23		%		13.23		%		13.38		%
Tier 1 leverage ratio	10.02		%		10.08		%		11.22		%		11.18		%
Total risk weighted assets	$	13,691,823			$	13,388,522			$	13,208,299			$	12,951,936
Book value per common share	$	16.55			$	16.48			$	16.19			$	16.03
Tangible common equity to tangible assets 1	9.63		%		9.32		%		10.27		%		10.43		%
Tangible common equity per share 1	$	12.70			$	12.62			$	12.40			$	12.27
1 Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and core deposit intangible assets, net divided by total assets less goodwill and core deposit intangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company’s capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital.
	Three Months Ended																				Nine Months Ended
ALLOWANCE FOR CREDIT LOSSES CHANGES:	9/30/2020				6/30/2020				3/31/2020				12/31/2019				9/30/2019				9/30/2020				9/30/2019
Balance at beginning of period	$	161,771			$	144,923			$	94,144			$	93,882			$	94,066			$	94,144			$	92,557
CECL day 1 adoption impact	—				—				26,200				—				—				26,200				—
Provision for credit losses	22,000				17,500				28,000				1,000				2,100				67,500				6,300
Recoveries	2,428				252				2,536				939				780				5,216				2,797
Charge offs	(6,350)				(904)				(5,957)				(1,677)				(2,602)				(13,211)				(6,432)
PCI allowance adjustment	—				—				—				—				(462)				—				(1,340)
Balance at end of period	$	179,849			$	161,771			$	144,923			$	94,144			$	93,882			$	179,849			$	93,882
Net charge offs/average loans receivable (annualized)	0.12		%		0.02		%		0.11		%		0.02		%		0.06		%		0.08		%		0.04		%
	Three Months Ended																				Nine Months Ended
NET LOAN CHARGE OFFS (RECOVERIES):	9/30/2020				6/30/2020				3/31/2020				12/31/2019				9/30/2019				9/30/2020				9/30/2019
Real estate loans	$	5,154			$	148			$	2,230			$	203			$	951			$	7,532			$	(504)
Commercial loans	(1,451)				240				676				245				596				(535)				3,245
Consumer loans	219				264				515				290				275				998				894
Total net charge offs	$	3,922			$	652			$	3,421			$	738			$	1,822			$	7,995			$	3,635

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
NONPERFORMING ASSETS:	9/30/2020				6/30/2020				3/31/2020				12/31/2019				9/30/2019
Loans on nonaccrual status 3	$	69,205			$	82,137			$	72,639			$	54,785			$	42,235
Delinquent loans 90 days or more on accrual status	1,537				430				387				7,547				398
Accruing troubled debt restructured loans	35,429				44,026				43,789				35,709				34,717
Total nonperforming loans	106,171				126,593				116,815				98,041				77,350
Other real estate owned	18,410				20,983				23,039				24,091				19,374
Total nonperforming assets	$	124,581			$	147,576			$	139,854			$	122,132			$	96,724
Nonperforming assets/total assets	0.74		%		0.86		%		0.87		%		0.78		%		0.63		%
Nonperforming assets/loans receivable & OREO	0.95		%		1.14		%		1.11		%		0.99		%		0.80		%
Nonperforming assets/total capital	6.11		%		7.27		%		6.93		%		6.00		%		4.76		%
Nonperforming loans/loans receivable	0.81		%		0.98		%		0.93		%		0.80		%		0.64		%
Nonaccrual loans/loans receivable	0.53		%		0.64		%		0.58		%		0.45		%		0.35		%
Allowance for credit losses/loans receivable	1.37		%		1.26		%		1.15		%		0.77		%		0.78		%
Allowance for credit losses/nonaccrual loans	259.88		%		196.95		%		199.51		%		171.84		%		222.28		%
Allowance for credit losses/nonperforming loans	169.40		%		127.79		%		124.06		%		96.03		%		121.37		%
Allowance for credit losses/nonperforming assets	144.36		%		109.62		%		103.62		%		77.08		%		97.06		%
3 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $26.2 million, $30.3 million, $28.8 million, $28.1 million, and $37.3 million at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.
NONACCRUAL LOANS BY TYPE:	9/30/2020				6/30/2020				3/31/2020				12/31/2019				9/30/2019
Real estate loans	$	51,739			$	64,060			$	56,787			$	40,935			$	27,920
Commercial loans	13,022				12,079				12,747				10,893				11,242
Consumer loans	4,444				5,998				3,105				2,957				3,073
Total nonaccrual loans	$	69,205			$	82,137			$	72,639			$	54,785			$	42,235
BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:	9/30/2020				6/30/2020				3/31/2020				12/31/2019				9/30/2019
Retail buildings	$	5,451			$	5,526			$	5,014			$	4,215			$	3,221
Gas stations/car washes	224				1,789				1,675				—				233
Mixed-use facilities	4,323				3,583				3,157				3,175				3,200
Warehouses	7,320				13,433				13,381				10,381				10,449
Other 5	18,111				19,695				20,562				17,938				17,614
Total	$	35,429			$	44,026			$	43,789			$	35,709			$	34,717
5 Includes commercial business, consumer, and other loans
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:	9/30/2020				6/30/2020				3/31/2020				12/31/2019				9/30/2019
30 - 59 days	$	5,962			$	18,857			$	37,866			$	14,433			$	25,281
60 - 89 days	58,065				29,975				2,605				4,712				4,535
Total	$	64,027			$	48,832			$	40,471			$	19,145			$	29,816
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE:	9/30/2020				6/30/2020				3/31/2020				12/31/2019				9/30/2019
Real estate loans	$	60,510			$	27,245			$	23,753			$	7,689			$	20,572
Commercial loans	624				5,987				4,583				692				2,282
Consumer loans	2,893				15,600				12,135				10,764				6,962
Total	$	64,027			$	48,832			$	40,471			$	19,145			$	29,816
CRITICIZED LOANS:	9/30/2020				6/30/2020				3/31/2020				12/31/2019				9/30/2019
Special mention	$	153,388			$	127,149			$	122,279			$	141,452			$	139,848
Substandard	311,902				299,357				278,771				259,278				268,605
Doubtful/Loss	6,640				11				12				13				17
Total criticized loans	$	471,930			$	426,517			$	401,062			$	400,743			$	408,470

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
Reconciliation of GAAP financial measures to non-GAAP financial measures
Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. A reconciliation of the GAAP to non-GAAP financial measures utilized by management is provided below.
	Three Months Ended												Nine Months Ended
	9/30/2020				6/30/2020				9/30/2019				9/30/2020				9/30/2019
RETURN ON AVERAGE TANGIBLE COMMON EQUITY
Average stockholders’ equity	$	2,039,555			$	2,016,947			$	2,010,458			$	2,028,074			$	1,964,146
Less: Goodwill and core deposit intangible assets, net	(475,010)				(475,534)				(477,159)				(475,530)				(477,730)
Average tangible common equity	$	1,564,545			$	1,541,413			$	1,533,299			$	1,552,544			$	1,486,416
Net income	$	30,490			$	26,753			$	42,592			$	83,196			$	128,031
Return on average tangible common equity (annualized)	7.80		%		6.94		%		11.11		%		7.14		%		11.48		%
	Three Months Ended
	9/30/2020				6/30/2020				12/31/2019				9/30/2019
TANGIBLE COMMON EQUITY
Total stockholders’ equity	$	2,040,561			$	2,030,776			$	2,036,011			$	2,031,284
Less: Goodwill and core deposit intangible assets, net	(474,689)				(475,220)				(476,283)				(476,840)
Tangible common equity	$	1,565,872			$	1,555,556			$	1,559,728			$	1,554,444
Total assets	$	16,733,767			$	17,169,062			$	15,667,440			$	15,379,878
Less: Goodwill and core deposit intangible assets, net	(474,689)				(475,220)				(476,283)				(476,840)
Tangible assets	$	16,259,078			$	16,693,842			$	15,191,157			$	14,903,038
Common shares outstanding	123,260,760				123,239,276				125,756,543				126,697,925
Tangible common equity to tangible assets	9.63		%		9.32		%		10.27		%		10.43		%
Tangible common equity per share	$	12.70			$	12.62			$	12.40			$	12.27

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
	Three Months Ended												Nine Months Ended
	9/30/2020				6/30/2020				9/30/2019				9/30/2020				9/30/2019
PRE-TAX PRE-PROVISION INCOME
Net income	$	30,490			$	26,753			$	42,592			$	83,196			$	128,031
Add back - tax provision	9,254				9,771				14,566				25,487				43,261
Add back - provision for credit losses	22,000				17,500				2,100				67,500				6,300
Pre-tax pre-provision income	$	61,744			$	54,024			$	59,258			$	176,183			$	177,592
	Three Months Ended												Nine Months Ended
	9/30/2020				6/30/2020				9/30/2019				9/30/2020				9/30/2019
PRE-PROVISION NET REVENUE
Net interest income before provision for credit losses	$	117,637			$	109,814			$	116,258			$	346,742			$	353,087
Noninterest income	17,513				11,240				12,995				42,017				36,704
Pre-Provision Net Revenue	$	135,150			$	121,054			$	129,253			$	388,759			$	389,791