Hope Bancorp Reports 2021 Fourth Quarter and Full-Year Financial Results

Rhea-AI Summary

Hope Bancorp, Inc. (NASDAQ: HOPE) reported strong financial results for Q4 and full year 2021. Q4 net income was $51.6 million ($0.43 per diluted share), down from $55.5 million in Q3 2021 but significantly up from $28.3 million in Q4 2020. Full year net income reached $204.6 million ($1.66 per diluted share), doubling 2020's results. Loan originations soared 23% to $1.24 billion, driving loans receivable up 4%. Pre-provision net revenue also increased by 10% quarter-over-quarter, indicating robust performance amid a challenging environment. The company is cautiously optimistic for 2022 with improved efficiencies and a focus on traditional growth.

Positive

• Net income for Q4 2021 was $51.6 million, a significant increase from $28.3 million in Q4 2020.
• Full year net income totaled $204.6 million, double the previous year's $111.5 million.
• Record loan originations of $1.24 billion in Q4 contributed to a 4% increase in loans receivable quarter-over-quarter.
• Pre-provision net revenue increased 10% quarter-over-quarter to $72.2 million.
• Efficiency ratio improved to 50.70%, down from 53.58% in Q3 2021.

Negative

• Net income decreased from $55.5 million in Q3 2021 to $51.6 million in Q4 2021.
• Cost of deposits decreased only marginally, indicating pressure on deposit margins.

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 fourth quarter and full year ended December 31, 2021.

For the three months ended December 31, 2021, net income totaled $51.6 million, or $0.43 per diluted common share. This compares with net income of $55.5 million, or $0.45 per diluted common share, in the third quarter of 2021 and $28.3 million, or $0.23 per diluted common share, in the fourth quarter of 2020. Pre-provision net revenue⁽¹⁾ for the 2021 fourth quarter increased 10% over the 2021 third quarter and increased 18% over the prior-year fourth quarter.

For the full year ended December 31, 2021, net income totaled $204.6 million, or $1.66 per diluted common share, compared with net income of $111.5 million, or $0.90 per diluted common share for the year ended December 31, 2020. Pre-provision net revenue⁽¹⁾ for 2021 increased 11% over 2020.

“We delivered an outstanding financial performance in the fourth quarter of 2021 to close out a year with record levels of loan production, a more diversified, lower-risk loan portfolio, continued improvement in our deposit composition, and enhanced efficiencies and profitability,” said Kevin S. Kim, Chairman, President and Chief Executive Officer. “Following the successful de-risking and rebalancing of our loan portfolio, record loan production of $1.24 billion in the fourth quarter led to a 4% quarter-over-quarter increase in loans receivable. We also continued to enhance the quality of our deposit franchise with core deposit growth leading to a ninth consecutive quarter of decreasing deposit costs. The redeployment of excess cash into higher-yielding earning assets resulted in increased levels of net interest income and drove a 6 basis point expansion of our net interest margin quarter-over-quarter. Altogether with our continued expense management, we delivered double-digit growth in our pre-provision net revenue⁽¹⁾ for the 2021 fourth quarter versus the preceding third quarter, as well as for the full 2021 year compared with the prior year.

“The strong headwinds of 2021 are behind us, and we began 2022 with tremendous momentum following a solid fourth quarter performance reflective of our more traditional growth levels. Armed with greater confidence in our ability to navigate through a new normal that includes a lingering pandemic and with an expanded and improved business development team and focus, I believe the long-term prospects of our franchise is stronger today than it has ever been,” said Kim.

Q4 2021 Highlights

• Loan originations increased 23% quarter-over-quarter to a record $1.24 billion and contributed to a 4.0% increase in loans receivable quarter-over-quarter, or 15.9% annualized.
• Excluding PPP, loans receivable increased 4.9% quarter-over-quarter, or 19.6% annualized.
• Net interest income before provision for credit losses increased 2% quarter-over-quarter to $133.3 million, reflecting the redeployment of excess cash into loans and investment securities and lower cost of deposits.
• Total cost of deposits decreased 3 basis points quarter-over-quarter, reflecting the ongoing downward repricing of interest bearing deposits, and represented the ninth consecutive quarter of declining deposit costs.
• Noninterest expenses continued to be well managed with efficiency ratio improving 288 basis points quarter-over-quarter to 50.70% and noninterest expense to average assets improving to 1.67%.
• Pre-provision net revenue⁽¹⁾ increased 10% quarter-over-quarter and totaled $72.2 million.
• Company recorded net recoveries of $2.3 million related to a large loan previously charged off during the 2021 third quarter.
• Total nonperforming assets declined quarter-over-quarter by $1.9 million, and criticized loans decreased by $50.9 million.
• Re-entered the state of Georgia with a new branch opening in the epicenter of Atlanta’s growing Korean American community.

(1)

Pre-provision net revenue, a non-GAAP financial measure, represents the sum of net interest income before provision (credit) for credit losses and non-interest income less noninterest expense. Management’s reasons and purposes for using this non-GAAP financial measure is set forth on page 7 of this earnings release. A quantitative reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 10.

Financial Highlights

(dollars in thousands, except per share data) (unaudited)	At or for the Three Months Ended
	12/31/2021				9/30/2021				12/31/2020
Net income	$	51,623			$	55,499			$	28,319
Diluted earnings per share	$	0.43			$	0.45			$	0.23
Pre-provision net revenue (1)	$	72,179			$	65,411			$	61,108
Net interest income before provision (credit) for credit losses	$	133,318			$	130,296			$	120,756
Net interest margin		3.13	%			3.07	%			3.02	%
Noninterest income	$	13,097			$	10,617			$	11,415
Noninterest expense	$	74,236			$	75,502			$	71,063
Net loans receivable	$	13,812,193			$	13,281,917			$	13,356,472
Deposits	$	15,040,450			$	15,062,527			$	14,333,912
Total cost of deposits		0.23	%			0.26	%			0.48	%
Nonaccrual loans (2)	$	54,616			$	54,380			$	85,238
Nonperforming loans to loans receivable (2)		0.78	%			0.73	%			0.91	%
ACL to loans receivable		1.01	%			1.02	%			1.52	%
ACL to nonaccrual loans (2)		257.34	%			251.52	%			242.55	%
ACL to nonperforming assets (2)		125.76	%			120.33	%			144.24	%
Provision (credit) for credit losses	$	1,500			$	(10,000	)		$	27,500
Net (recoveries) charge offs	$	(2,276	)		$	42,678			$	608
Return on average assets (“ROA”)		1.16	%			1.25	%			0.67	%
Return on average equity (“ROE”)		9.93	%			10.61	%			5.54	%
Return on average tangible common equity (“ROTCE”) (1)		12.85	%			13.71	%			7.21	%
Noninterest expense / average assets		1.67	%			1.70	%			1.69	%
Efficiency ratio		50.70	%			53.58	%			53.77	%

(1)		Pre-provision net revenue and return on average tangible common equity are non-GAAP financial measures. Management’s reasons and purposes for using these non-GAAP financial measures are set forth on Page 7 of this earnings release. A quantitative reconciliation of the Company’s GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.
(2)		Excludes delinquent SBA loans that are guaranteed and currently in liquidation

Operating Results for the 2021 Fourth Quarter

Net interest income before provision for credit losses for the 2021 fourth quarter increased 2% to $133.3 million from $130.3 million in the 2021 third quarter and increased 10% from $120.8 million in the year-ago fourth quarter. The Company attributed the increase to higher interest income due to higher average balances of loans receivable and investment securities, as well as lower interest expense on deposits.

The net interest margin for the 2021 fourth quarter increased 6 basis points to 3.13% from 3.07% in the preceding third quarter, primarily attributed to the redeployment of cash into loans and investment securities, and a 3 basis point reduction in the cost of deposits. The net interest margin in the prior-year fourth quarter was 3.02%.

The weighted average yield on loans for the 2021 fourth quarter was 3.95%, compared with 3.97% in the preceding third quarter, and 4.03% in the year-ago fourth quarter.

The weighted average cost of deposits for the 2021 fourth quarter decreased for the ninth consecutive quarter to 0.23%, representing a 3 basis point decrease from 0.26% for the 2021 third quarter and a 25 basis point decrease from 0.48% for the 2020 fourth quarter. The Company attributed the improvements in the weighted average cost of deposits to the ongoing downward repricing of interest bearing deposits. The cost of interest bearing deposits was 0.39%, 0.42%, and 0.71% for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020, respectively.

Noninterest income for the 2021 fourth quarter increased 23% quarter-over-quarter to $13.1 million from $10.6 million in the preceding third quarter, reflecting higher levels of deposit and transaction fees, net gain on sale of SBA loans, swap fee income, and equity investment dividend income. During the 2021 fourth quarter, the Company sold $41.0 million in the guaranteed portion of SBA 7(a) loans, compared with $31.3 million in the preceding third quarter. Noninterest income in the 2020 fourth quarter totaled $11.4 million.

Noninterest expense for the 2021 fourth quarter decreased to $74.2 million from $75.5 million for the preceding third quarter, largely reflecting lower salaries and employee benefits expense, partially offset by higher OREO expenses. For the 2020 fourth quarter, noninterest expense totaled $71.1 million.

Salaries and employee benefits expense for the 2021 fourth quarter decreased to $44.6 million from $47.0 million in the preceding third quarter, and is attributable to more normalized bonus reserves, a decrease in stock compensation expense, and an increase in deferred loan origination costs. Salaries and employee benefits expense for the 2020 fourth quarter totaled $40.9 million.

The Company’s efficiency ratio for the 2021 fourth quarter improved to 50.7% from 53.6% in the preceding third quarter and 53.8% in the year-ago fourth quarter. Noninterest expense as a percentage of average assets improved to 1.67% for the 2021 fourth quarter from 1.70% for the 2021 third quarter and from 1.69% for the 2020 fourth quarter.

The effective tax rate for the 2021 fourth quarter was 27.0%, compared with 26.4% for the preceding third quarter, reflecting an increase in the Company’s actual annual pretax income compared with previous estimates, combined with the benefit of affordable housing partnership investment tax credits having a smaller effect on the larger annual pretax income. In the year-ago fourth quarter, the effective tax rate was materially lower than the preceding quarters of 2020 at 15.7%, which reflected a lower tax provision based on adjustments to the applicable state apportionment factors. The effective tax rate for the full-year 2021 was 25.7%, compared with 21.6% for 2020. The increase in the full-year tax rate was mainly due to an increase in pretax income during 2021 and the change in the Company’s state apportionment in 2020 which materially lowered the tax rate for that year.

Balance Sheet Summary

New loan originations funded during the 2021 fourth quarter increased 23% quarter-over-quarter to a record $1.24 billion from the previous record of $1.01 billion in the preceding third quarter. In the year-ago fourth quarter, the Company originated $844.2 million of new loans.

Following are the components of new loan production for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020.

(dollars in thousands) (unaudited)	For the Three Months Ended
	12/31/2021			9/30/2021			12/31/2020
Commercial real estate	$	573,978		$	488,969		$	326,512
Commercial		532,634			329,702			435,151
SBA (excluding SBA PPP)		54,848			115,023			17,141
Residential mortgage		81,325			75,007			62,492
Consumer		70			500			2,932
Total new loan originations	$	1,242,855		$	1,009,201		$	844,228

At December 31, 2021, loans receivable increased 4.0% to $13.95 billion from $13.42 billion at September 30, 2021 and increased 2.9% from $13.56 billion at December 31, 2020.

Total deposits at December 31, 2021 declined slightly to $15.04 billion from $15.06 billion at September 30, 2021, but increased 4.9% year-over-year from $14.33 billion at December 31, 2020. Quarter-over-quarter, money market and NOW deposits increased 5.2%, but was offset by a seasonal decline in noninterest bearing demand deposits and a reduction in time deposits. On a year-over-year basis, noninterest bearing demand deposits at year-end increased 19.5%, money market and NOW deposits increased 18.1%, and time deposits decreased 30.1%.

Following is the deposit composition as of December 31, 2021, September 30, 2021 and December 31, 2020:

(dollars in thousands) (unaudited)	12/31/2021			9/30/2021			% change			12/31/2020			% change
Noninterest bearing demand deposits	$	5,751,870		$	6,007,586		(4.3	)%		$	4,814,254		19.5	%
Money market and other		6,178,850			5,871,567		5.2	%			5,232,413		18.1	%
Saving deposits		321,377			314,603		2.2	%			300,770		6.9	%
Time deposits		2,788,353			2,868,771		(2.8	)%			3,986,475		(30.1	)%
Total deposit balances	$	15,040,450		$	15,062,527		(0.1	)%		$	14,333,912		4.9	%

While noninterest bearing demand deposits decreased to $5.75 billion at December 31, 2021 from $6.01 billion as of September 30, 2021 due to seasonality related to larger corporate banking deposit relationships, the average noninterest bearing deposit balance for the 2021 fourth quarter increased 2.0% over the third quarter of 2021.

Following is the deposit composition as a percentage of total deposits as of December 31, 2021, September 30, 2021 and December 31, 2020 and a breakdown of cost of deposits for the quarters ended December 31, 2021, September 30, 2021 and December 31, 2020:

	Deposit Breakdown									Cost of Deposits
(dollars in thousands) (unaudited)	12/31/2021			9/30/2021			12/31/2020			Q4 2021			Q3 2021			Q4 2020
Noninterest bearing demand deposits	38.3	%		39.9	%		33.6	%		—	%		—	%		—	%
Money market and other	41.1	%		39.0	%		36.5	%		0.37	%		0.40	%		0.45	%
Saving deposits	2.1	%		2.1	%		2.1	%		1.18	%		1.18	%		1.17	%
Time deposits	18.5	%		19.0	%		27.8	%		0.34	%		0.38	%		0.98	%
Total deposit balances	100.0	%		100.0	%		100.0	%		0.23	%		0.26	%		0.48	%

Allowance for Credit Losses

In the 2021 fourth quarter, the Company recorded a provision for credit losses of $1.5 million, compared with a negative provision for credit losses of $10.0 million in the preceding third quarter, and a provision for credit losses of $27.5 million in the 2020 fourth quarter.

Following is the allowance for credit losses as of December 31, 2021, September 30, 2021 and December 31, 2020:

(dollars in thousands) (unaudited)	12/31/2021			9/30/2021			12/31/2020
Allowance for credit losses	$	140,550		$	136,774		$	206,741
Allowance for credit loss/loans receivable		1.01 %			1.02 %			1.52 %
Allowance for credit losses/nonperforming loans		128.75 %			138.92 %			167.80 %

Credit Quality

Following are the components of nonperforming assets as of December 31, 2021, September 30, 2021 and December 31, 2020:

(dollars in thousands) (unaudited)	12/31/2021			9/30/2021			12/31/2020
Loans on nonaccrual status (1)	$	54,616		$	54,380		$	85,238
Delinquent loans 90 days or more on accrual status		2,131			4,567			614
Accruing troubled debt restructured loans		52,418			39,509			37,354
Total nonperforming loans		109,165			98,456			123,206
Other real estate owned		2,597			15,213			20,121
Total nonperforming assets	$	111,762		$	113,669		$	143,327

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $19.5 million, $20.6 million, and $26.5 million, at December 31, 2021, September 30, 2021, and December 31, 2020, respectively.

Total nonperforming assets at December 31, 2021 declined to $111.8 million from $113.7 million at September 30, 2021 and from $143.3 million at December 31, 2020. The quarter-over-quarter decrease in total nonperforming assets largely reflects a $12.6 million reduction in other real estate owned, partially offset by a $10.7 million increase in nonperforming loans due to one large commercial real estate loan.

Following are net (recoveries) charge offs and net (recoveries) charge offs to average loans receivable on an annualized basis for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020:

(dollars in thousands) (unaudited)	For the Three Months Ended
	12/31/2021				9/30/2021				12/31/2020
Net (recoveries) charge offs	$	(2,276	)		$	42,678			$	608
Net (recoveries) charge offs/average loans receivable (annualized)		(0.07	)%			1.28	%			0.02	%

Net recoveries in the 2021 fourth quarter reflects a partial recovery from a large loan charged off during the preceding third quarter.

Following are the components of criticized loan balances as of December 31, 2021, September 30, 2021 and December 31, 2020:

(dollars in thousands) (unaudited)	12/31/2021			9/30/2021			12/31/2020
Special Mention	$	257,194		$	306,766		$	184,941
Classified		242,397			243,684			366,557
Criticized	$	499,591		$	550,450		$	551,498

The Company noted that the quarter-over-quarter decrease in criticized loans at December 31, 2021 reflects the benefits of its de-risking strategy focused on reducing higher-risk commercial real estate properties.

Capital

At December 31, 2021, 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 December 31, 2021, September 30, 2021 and December 31, 2020:

(unaudited)	12/31/2021		9/30/2021		12/31/2020		Minimum Guideline for “Well-Capitalized” Bank
Common Equity Tier 1 Capital	11.03%		11.01%		10.94%		6.50%
Tier 1 Leverage Ratio	10.11%		9.98%		10.22%		5.00%
Tier 1 Risk-Based Ratio	11.70%		11.70%		11.64%		8.00%
Total Risk-Based Ratio	12.42%		12.42%		12.87%		10.00%

Following are tangible common equity⁽¹⁾ (“TCE”) per share and TCE as a percentage of tangible assets⁽¹⁾ as of December 31, 2021, September 30, 2021 and December 31, 2020:

(unaudited)	12/31/2021		9/30/2021		12/31/2020
Tangible common equity per share (1)	$13.51		$13.33		$12.81
Tangible common equity to tangible assets (1)	9.31%		9.24%		9.50%

(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. 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, tangible common equity per share, tangible assets and tangible common equity to tangible assets are non-GAAP financial measures. Management’s reasons and purposes for using these non-GAAP financial measures are set forth on Page 7 of this earnings release. A quantitative reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 10.

Non-GAAP Financial Metrics

This news release contains certain non-GAAP financial disclosures, including pre-provision net revenue, tangible common equity, tangible common equity per share and tangible common equity to tangible assets. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding its operational performance and the Company’s and the Bank’s capital levels and has included these figures in response to market participant interest in these financial metrics. A reconciliation of the GAAP to non-GAAP financial measures 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 Tuesday, January 25, 2022 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its fourth quarter and full year ended December 31, 2021. 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 February 1, 2022, replay access code 7703555.

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 $17.89 billion in total assets as of December 31, 2021. 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, 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)
Assets	12/31/2021				9/30/2021				% change			12/31/2020				% change
Cash and due from banks	$	316,266			$	627,352			(50	)%		$	350,579			(10	)%
Securities available for sale, at fair value		2,666,275				2,669,489			—	%			2,285,611			17	%
Federal Home Loan Bank (“FHLB”) stock and other investments		87,961				88,102			—	%			105,591			(17	)%
Loans held for sale, at the lower of cost or fair value		99,049				179,117			(45	)%			17,743			458	%
Loans receivable		13,952,743				13,418,691			4	%			13,563,213			3	%
Allowance for credit losses		(140,550	)			(136,774	)		3	%			(206,741	)		(32	)%
Net loans receivable		13,812,193				13,281,917			4	%			13,356,472			3	%
Accrued interest receivable		41,842				47,102			(11	)%			59,430			(30	)%
Premises and equipment, net		45,667				45,307			1	%			48,409			(6	)%
Bank owned life insurance		77,081				76,756			—	%			76,765			—	%
Goodwill		464,450				464,450			—	%			464,450			—	%
Servicing assets		10,418				10,787			(3	)%			12,692			(18	)%
Other intangible assets, net		7,671				8,180			(6	)%			9,708			(21	)%
Other assets		260,188				300,467			(13	)%			319,214			(18	)%
Total assets	$	17,889,061			$	17,799,026			1	%		$	17,106,664			5	%
Liabilities
Deposits	$	15,040,450			$	15,062,527			—	%		$	14,333,912			5	%
FHLB advances		300,000				200,000			50	%			250,000			20	%
Convertible notes, net		216,209				215,974			—	%			204,565			6	%
Subordinated debentures		105,354				105,057			—	%			104,178			1	%
Accrued interest payable		4,272				5,367			(20	)%			14,706			(71	)%
Other liabilities		129,793				135,703			(4	)%			145,558			(11	)%
Total liabilities		15,796,078				15,724,628			—	%			15,052,919			5	%
Stockholders’ Equity
Common stock, $0.001 par value		136				136			—	%			136			—	%
Capital surplus		1,421,698				1,420,151			—	%			1,434,916			(1	)%
Retained earnings		932,561				897,766			4	%			785,940			19	%
Treasury stock, at cost		(250,000	)			(247,198	)		1	%			(200,000	)		25	%
Accumulated other comprehensive (loss) gain, net		(11,412	)			3,543			N/A				32,753			N/A
Total stockholders’ equity		2,092,983				2,074,398			1	%			2,053,745			2	%
Total liabilities and stockholders’ equity	$	17,889,061			$	17,799,026			1	%		$	17,106,664			5	%
Common stock shares - authorized		150,000,000				150,000,000							150,000,000
Common stock shares - outstanding		120,006,452				120,198,061							123,264,864
Treasury stock shares		16,343,849				16,149,007							12,661,581

Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands)
	Three Months Ended																	Twelve Months Ended
	12/31/2021			9/30/2021				% change			12/31/2020				% change			12/31/2021				12/31/2020			% change
Interest and fees on loans	$	133,821		$	132,794			1	%		$	132,117			1	%		$	528,174			$	554,967		(5	)%
Interest on securities		10,657			9,207			16	%			9,014			18	%			35,492				39,362		(10	)%
Interest on federal funds sold and other investments		691			865			(20	)%			598			16	%			2,866				4,549		(37	)%
Total interest income		145,169			142,866			2	%			141,729			2	%			566,532				598,878		(5	)%
Interest on deposits		8,905			9,640			(8	)%			16,934			(47	)%			42,011				110,369		(62	)%
Interest on other borrowings and convertible notes		2,946			2,930			1	%			4,039			(27	)%			11,751				21,011		(44	)%
Total interest expense		11,851			12,570			(6	)%			20,973			(43	)%			53,762				131,380		(59	)%
Net interest income before provision (credit) for credit losses		133,318			130,296			2	%			120,756			10	%			512,770				467,498		10	%
Provision (credit) for credit losses		1,500			(10,000	)		N/A				27,500			(95	)%			(12,200	)			95,000		N/A
Net interest income after provision (credit) for credit losses		131,818			140,296			(6	)%			93,256			41	%			524,970				372,498		41	%
Service fees on deposit accounts		1,894			1,814			4	%			2,991			(37	)%			7,275				12,443		(42	)%
International service fees		1,061			889			19	%			696			52	%			3,586				3,139		14	%
Loan servicing fees, net		747			642			16	%			566			32	%			3,367				2,809		20	%
Wire transfer fees		916			836			10	%			867			6	%			3,519				3,577		(2	)%
Net gains on sales of SBA loans		3,614			2,459			47	%			—			100	%			8,448				—		100	%
Net gains on sales of residential mortgage loans		530			781			(32	)%			1,618			(67	)%			4,435				8,004		(45	)%
Net gains on sales of securities available for sale		—			—			—	%			—			—	%			—				7,531		(100	)%
Other income and fees		4,335			3,196			36	%			4,677			(7	)%			12,964				15,929		(19	)%
Total noninterest income		13,097			10,617			23	%			11,415			15	%			43,594				53,432		(18	)%
Salaries and employee benefits		44,608			47,018			(5	)%			40,911			9	%			175,151				162,922		8	%
Occupancy		7,391			7,473			(1	)%			7,200			3	%			28,898				28,917		—	%
Furniture and equipment		4,642			4,429			5	%			4,122			13	%			18,079				17,548		3	%
Advertising and marketing		2,329			2,656			(12	)%			1,695			37	%			8,707				6,284		39	%
Data processing and communications		2,789			2,394			16	%			2,235			25	%			10,331				9,344		11	%
Professional fees		2,439			2,431			—	%			1,847			32	%			12,168				8,170		49	%
FDIC assessment		1,366			1,204			13	%			1,166			17	%			5,109				5,544		(8	)%
Credit related expenses		873			1,266			(31	)%			2,001			(56	)%			4,400				6,817		(35	)%
OREO expense (income), net		811			248			227	%			(86	)		N/A				1,638				3,865		(58	)%
Software impairment		—			—			—	%			—			—	%			2,146				—		100	%
FHLB advance prepayment fee		—			—			—	%			—			—	%			—				3,584		(100	)%
Branch restructuring costs		—			—			—	%			2,367			(100	)%			—				2,367		(100	)%
Other		6,988			6,383			9	%			7,605			(8	)%			26,665				28,277		(6	)%
Total noninterest expense		74,236			75,502			(2	)%			71,063			4	%			293,292				283,639		3	%
Income before income taxes		70,679			75,411			(6	)%			33,608			110	%			275,272				142,291		93	%
Income tax provision		19,056			19,912			(4	)%			5,289			260	%			70,700				30,776		130	%
Net income	$	51,623		$	55,499			(7	)%		$	28,319			82	%		$	204,572			$	111,515		83	%
Earnings per Common Share - Basic	$	0.43		$	0.45						$	0.23						$	1.67			$	0.90
Earnings per Common Share - Diluted	$	0.43		$	0.45						$	0.23						$	1.66			$	0.90
Weighted Average Shares Outstanding - Basic		120,160,300			122,244,948							123,264,172							122,321,768				123,501,401
Weighted Average Shares Outstanding - Diluted		121,025,925			122,908,536							123,874,229							123,133,025				123,889,343

Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands)
	At or for the Three Months Ended (Annualized)												At or for the Twelve Months Ended
Profitability measures:	12/31/2021				9/30/2021				12/31/2020				12/31/2021				12/31/2020
ROA		1.16	%			1.25	%			0.67	%			1.17	%			0.68	%
ROE		9.93	%			10.61	%			5.54	%			9.88	%			5.49	%
ROTCE (1)		12.85	%			13.71	%			7.21	%			12.80	%			7.16	%
Net interest margin		3.13	%			3.07	%			3.02	%			3.09	%			3.00	%
Efficiency ratio		50.70	%			53.58	%			53.77	%			52.72	%			54.45	%
Noninterest expense / average assets		1.67	%			1.70	%			1.69	%			1.68	%			1.72	%
(1) Average tangible equity is calculated by subtracting average goodwill and average core deposit intangibles 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												Twelve Months Ended
Pre-tax acquisition accounting adjustments	12/31/2021				9/30/2021				12/31/2020				12/31/2021				12/31/2020
Accretion on acquired loans	$	283			$	368			$	452			$	1,722			$	2,916
Accretion on acquired credit deteriorated loans		1,667				2,093				3,064				8,203				20,143
Amortization of premium on low income housing tax credits		(73	)			(73	)			(71	)			(293	)			(283	)
Accretion of discount on acquired subordinated debt		(296	)			(295	)			(289	)			(1,175	)			(1,143	)
Amortization of core deposit intangibles		(509	)			(509	)			(531	)			(2,037	)			(2,125	)
Total acquisition accounting adjustments	$	1,072			$	1,584			$	2,625			$	6,420			$	19,508

Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands)
	Three Months Ended
	12/31/2021									9/30/2021									12/31/2020
				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	$	13,447,009		$	133,821		3.95	%		$	13,286,382		$	132,794		3.97	%		$	13,046,443		$	132,117		4.03	%
Securities available for sale		2,674,903			10,657		1.58	%			2,370,672			9,207		1.54	%			2,123,025			9,014		1.69	%
FHLB stock and other investments		773,579			691		0.35	%			1,197,537			865		0.29	%			749,281			598		0.32	%
Total interest earning assets	$	16,895,491		$	145,169		3.41	%		$	16,854,591		$	142,866		3.36	%		$	15,918,749		$	141,729		3.54	%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing	$	5,961,363		$	5,522		0.37	%		$	5,919,225		$	5,946		0.40	%		$	4,910,649		$	5,541		0.45	%
Savings		316,758			946		1.18	%			310,525			920		1.18	%			305,341			898		1.17	%
Time deposits		2,823,613			2,437		0.34	%			2,914,977			2,774		0.38	%			4,240,500			10,495		0.98	%
Total interest bearing deposits		9,101,734			8,905		0.39	%			9,144,727			9,640		0.42	%			9,456,490			16,934		0.71	%
FHLB advances		216,882			648		1.19	%			200,000			640		1.27	%			204,900			657		1.28	%
Convertible notes, net		216,078			1,322		2.39	%			215,840			1,321		2.39	%			203,807			2,383		4.58	%
Subordinated debentures		101,295			976		3.77	%			100,993			969		3.75	%			100,118			999		3.90	%
Total interest bearing liabilities		9,635,989		$	11,851		0.49	%			9,661,560		$	12,570		0.52	%			9,965,315		$	20,973		0.84	%
Noninterest bearing demand deposits		5,967,251									5,848,983									4,637,584
Total funding liabilities/cost of funds	$	15,603,240					0.30	%		$	15,510,543					0.32	%		$	14,602,899					0.57	%
Net interest income/net interest spread				$	133,318		2.92	%					$	130,296		2.84	%					$	120,756		2.70	%
Net interest margin							3.13	%								3.07	%								3.02	%
Cost of deposits:
Noninterest bearing demand deposits	$	5,967,251		$	—		—	%		$	5,848,983		$	—		—	%		$	4,637,584		$	—		—	%
Interest bearing deposits		9,101,734			8,905		0.39	%			9,144,727			9,640		0.42	%			9,456,490			16,934		0.71	%
Total deposits	$	15,068,985		$	8,905		0.23	%		$	14,993,710		$	9,640		0.26	%		$	14,094,074		$	16,934		0.48	%

Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands)
	Twelve Months Ended
	12/31/2021									12/31/2020
				Interest									Interest
	Average			Income/			Average			Average			Income/			Average
	Balance			Expense			Yield/Cost			Balance			Expense			Yield/Cost
INTEREST EARNING ASSETS:
Loans, including loans held for sale	$	13,343,431		$	528,174		3.96	%		$	12,698,523		$	554,967		4.37	%
Securities available for sale		2,392,589			35,492		1.48	%			1,899,948			39,362		2.07	%
FHLB stock and other investments		844,010			2,866		0.34	%			982,419			4,549		0.46	%
Total interest earning assets	$	16,580,030		$	566,532		3.42	%		$	15,580,890		$	598,878		3.84	%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing	$	5,657,958		$	22,867		0.40	%		$	4,729,438		$	34,529		0.73	%
Savings		309,295			3,623		1.17	%			291,655			3,475		1.19	%
Time deposits		3,178,722			15,521		0.49	%			4,698,503			72,365		1.54	%
Total interest bearing deposits		9,145,975			42,011		0.46	%			9,719,596			110,369		1.14	%
FHLB advances		208,721			2,561		1.23	%			435,836			6,865		1.58	%
Convertible notes, net		215,633			5,289		2.42	%			201,859			9,457		4.61	%
Subordinated debentures		100,848			3,901		3.82	%			99,682			4,689		4.63	%
Total interest bearing liabilities		9,671,177		$	53,762		0.56	%			10,456,973		$	131,380		1.26	%
Noninterest bearing demand deposits		5,581,803									3,840,935
Total funding liabilities/cost of funds	$	15,252,980					0.35	%		$	14,297,908					0.92	%
Net interest income/net interest spread				$	512,770		2.86	%					$	467,498		2.58	%
Net interest margin							3.09	%								3.00	%
Cost of deposits:
Noninterest bearing demand deposits	$	5,581,803		$	—		—	%		$	3,840,935		$	—		—	%
Interest bearing deposits		9,145,975			42,011		0.46	%			9,719,596			110,369		1.14	%
Total deposits	$	14,727,778		$	42,011		0.29	%		$	13,560,531		$	110,369		0.81	%

Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands)
	Three Months Ended																		Twelve Months Ended
AVERAGE BALANCES:	12/31/2021				9/30/2021				% change			12/31/2020				% change			12/31/2021			12/31/2020			% change
Loans receivable, including loans held for sale	$	13,447,009			$	13,286,382			1	%		$	13,046,443			3	%		$	13,343,431		$	12,698,523		5	%
Securities, FHLB stock, and other		3,448,482				3,568,209			(3	)%			2,872,306			20	%			3,236,599			2,882,367		12	%
Interest earning assets		16,895,491				16,854,591			—	%			15,918,749			6	%			16,580,030			15,580,890		6	%
Total assets		17,834,345				17,745,066			1	%			16,824,700			6	%			17,467,665			16,515,102		6	%
Interest bearing deposits		9,101,734				9,144,727			—	%			9,456,490			(4	)%			9,145,975			9,719,596		(6	)%
Interest bearing liabilities		9,635,989				9,661,560			—	%			9,965,315			(3	)%			9,671,177			10,456,973		(8	)%
Noninterest bearing demand deposits		5,967,251				5,848,983			2	%			4,637,584			29	%			5,581,803			3,840,935		45	%
Stockholders’ equity		2,079,694				2,092,018			(1	)%			2,045,959			2	%			2,071,453			2,032,570		2	%
Net interest earning assets		7,259,502				7,193,031			1	%			5,953,434			22	%			6,908,853			5,123,917		35	%
LOAN PORTFOLIO COMPOSITION:	12/31/2021				9/30/2021				% change			12/31/2020				% change
Commercial loans	$	4,208,674			$	3,857,879			9	%		$	4,157,787			1	%
Real estate loans		9,105,931				8,908,657			2	%			8,772,134			4	%
Consumer and other loans		638,138				652,155			(2	)%			633,292			1	%
Loans, net of deferred loan fees and costs		13,952,743				13,418,691			4	%			13,563,213			3	%
Allowance for credit losses		(140,550	)			(136,774	)		(3	)%			(206,741	)		32	%
Loans receivable, net	$	13,812,193			$	13,281,917			4	%		$	13,356,472			3	%
REAL ESTATE LOANS BY PROPERTY TYPE:	12/31/2021				9/30/2021				% change			12/31/2020				% change
Retail buildings	$	2,522,976			$	2,466,881			2	%		$	2,293,396			10	%
Hotels/motels		1,308,405				1,385,003			(6	)%			1,634,287			(20	)%
Gas stations/car washes		1,050,730				999,069			5	%			892,110			18	%
Mixed-use facilities		854,793				819,516			4	%			750,867			14	%
Warehouses		1,244,339				1,160,863			7	%			1,091,389			14	%
Multifamily		744,068				691,262			8	%			518,498			44	%
Other		1,380,620				1,386,063			—	%			1,591,587			(13	)%
Total	$	9,105,931			$	8,908,657			2	%		$	8,772,134			4	%
DEPOSIT COMPOSITION:	12/31/2021				9/30/2021				% change			12/31/2020				% change
Noninterest bearing demand deposits	$	5,751,870			$	6,007,586			(4	)%		$	4,814,254			19	%
Money market and other		6,178,850				5,871,567			5	%			5,232,413			18	%
Saving deposits		321,377				314,603			2	%			300,770			7	%
Time deposits		2,788,353				2,868,771			(3	)%			3,986,475			(30	)%
Total deposit balances	$	15,040,450			$	15,062,527			—	%		$	14,333,912			5	%
DEPOSIT COMPOSITION (%):	12/31/2021				9/30/2021							12/31/2020
Noninterest bearing demand deposits		38.3	%			39.9	%						33.6	%
Money market and other		41.1	%			39.0	%						36.5	%
Saving deposits		2.1	%			2.1	%						2.1	%
Time deposits		18.5	%			19.0	%						27.8	%
Total deposit balances		100.0	%			100.0	%						100.0	%

Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands)
CAPITAL RATIOS:	12/31/2021				9/30/2021				12/31/2020
Total stockholders’ equity	$	2,092,983			$	2,074,398			$	2,053,745
Common equity tier 1 ratio		11.03	%			11.01	%			10.94	%
Tier 1 risk-based capital ratio		11.70	%			11.70	%			11.64	%
Total risk-based capital ratio		12.42	%			12.42	%			12.87	%
Tier 1 leverage ratio		10.11	%			9.98	%			10.22	%
Total risk weighted assets	$	15,036,292			$	14,737,809			$	14,341,456
Book value per common share	$	17.44			$	17.26			$	16.66
Tangible common equity to tangible assets (1)		9.31	%			9.24	%			9.50	%
Tangible common equity per share (1)	$	13.51			$	13.33			$	12.81
(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																				Twelve Months Ended
ALLOWANCE FOR CREDIT LOSSES CHANGES:	12/31/2021				9/30/2021				6/30/2021				3/31/2021				12/31/2020				12/31/2021				12/31/2020
Balance at beginning of period	$	136,774			$	189,452			$	207,943			$	206,741			$	179,849			$	206,741			$	94,144
CECL day 1 adoption impact		—				—				—				—				—				—				26,200
Provision (credit) for credit losses		1,500				(10,000	)			(7,000	)			3,300				27,500				(12,200	)			95,000
Recoveries		3,615				1,906				1,301				1,423				2,207				8,245				7,423
Charge offs		(1,339	)			(44,584	)			(12,792	)			(3,521	)			(2,815	)			(62,236	)			(16,026	)
Balance at end of period	$	140,550			$	136,774			$	189,452			$	207,943			$	206,741			$	140,550			$	206,741
Net (recoveries) charge offs / average loans receivable (annualized)		(0.07	)%			1.28	%			0.35	%			0.06	%			0.02	%			0.40	%			0.07	%
	Three Months Ended																				Twelve Months Ended
NET (RECOVERIES) CHARGE OFFS:	12/31/2021				9/30/2021				6/30/2021				3/31/2021				12/31/2020				12/31/2021				12/31/2020
Real estate loans	$	(2,352	)		$	40,542			$	11,281			$	2,234			$	(726	)		$	51,705			$	6,806
Commercial loans		144				1,117				181				(80	)			1,167				1,362				632
Consumer loans		(68	)			1,019				29				(56	)			167				924				1,165
Total net (recoveries) charge offs	$	(2,276	)		$	42,678			$	11,491			$	2,098			$	608			$	53,991			$	8,603

Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands)
NONPERFORMING ASSETS:	12/31/2021				9/30/2021				6/30/2021				3/31/2021				12/31/2020
Loans on nonaccrual status (1)	$	54,616			$	54,380			$	111,008			$	109,858			$	85,238
Delinquent loans 90 days or more on accrual status		2,131				4,567				4,759				384				614
Accruing troubled debt restructured loans		52,418				39,509				51,360				41,773				37,354
Total nonperforming loans		109,165				98,456				167,127				152,015				123,206
Other real estate owned		2,597				15,213				16,619				18,515				20,121
Total nonperforming assets	$	111,762			$	113,669			$	183,746			$	170,530			$	143,327
Nonperforming assets/total assets		0.62	%			0.64	%			1.05	%			0.99	%			0.84	%
Nonperforming assets/loans receivable & OREO		0.80	%			0.85	%			1.37	%			1.24	%			1.06	%
Nonperforming assets/total capital		5.34	%			5.48	%			8.78	%			8.34	%			6.98	%
Nonperforming loans/loans receivable		0.78	%			0.73	%			1.24	%			1.11	%			0.91	%
Nonaccrual loans/loans receivable		0.39	%			0.41	%			0.83	%			0.80	%			0.63	%
Allowance for credit losses/loans receivable		1.01	%			1.02	%			1.41	%			1.52	%			1.52	%
Allowance for credit losses/nonaccrual loans		257.34	%			251.52	%			170.67	%			189.28	%			242.55	%
Allowance for credit losses/nonperforming loans		128.75	%			138.92	%			113.36	%			136.79	%			167.80	%
Allowance for credit losses/nonperforming assets		125.76	%			120.33	%			103.11	%			121.94	%			144.24	%
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $19.5 million, $20.6 million, $23.6 million, $25.0 million, and $26.5 million, at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.
NONACCRUAL LOANS BY TYPE:	12/31/2021				9/30/2021				6/30/2021				3/31/2021				12/31/2020
Real estate loans	$	39,756			$	41,673			$	95,622			$	91,940			$	67,450
Commercial loans		11,025				10,991				12,217				14,080				13,911
Consumer loans		3,835				1,716				3,169				3,838				3,877
Total nonaccrual loans	$	54,616			$	54,380			$	111,008			$	109,858			$	85,238
BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:	12/31/2021				9/30/2021				6/30/2021				3/31/2021				12/31/2020
Retail buildings	$	28,483			$	11,280			$	12,110			$	6,319			$	5,408
Hotels/motels		472				—				—				—				—
Gas stations/car washes		197				202				206				210				219
Mixed-use facilities		2,846				7,937				7,967				3,377				3,521
Warehouses		5,366				4,908				14,099				14,124				7,296
Other (2)		15,054				15,182				16,978				17,743				20,910
Total	$	52,418			$	39,509			$	51,360			$	41,773			$	37,354
(2) 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:	12/31/2021			9/30/2021			6/30/2021			3/31/2021			12/31/2020
30 - 59 days	$	29,723		$	15,016		$	22,466		$	18,175		$	11,347
60 - 89 days		10,345			4,746			6,987			8,314			16,826
Total	$	40,068		$	19,762		$	29,453		$	26,489		$	28,173
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE:	12/31/2021			9/30/2021			6/30/2021			3/31/2021			12/31/2020
Real estate loans	$	20,232		$	10,359		$	21,432		$	18,331		$	15,689
Commercial loans		3,057			9,377			560			1,002			3,393
Consumer loans		16,779			26			7,461			7,156			9,091
Total	$	40,068		$	19,762		$	29,453		$	26,489		$	28,173
CRITICIZED LOANS:	12/31/2021			9/30/2021			6/30/2021			3/31/2021			12/31/2020
Special mention	$	257,194		$	306,766		$	294,559		$	280,974		$	184,941
Substandard		242,397			243,684			380,955			379,048			366,557
Total criticized loans	$	499,591		$	550,450		$	675,514		$	660,022		$	551,498

Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands)
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												Twelve Months Ended
	12/31/2021				9/30/2021				12/31/2020				12/31/2021				12/31/2020
RETURN ON AVERAGE TANGIBLE COMMON EQUITY
Average stockholders’ equity	$	2,079,694			$	2,092,018			$	2,045,959			$	2,071,453			$	2,032,570
Less: Goodwill and core deposit intangible assets, net		(472,405	)			(472,918	)			(474,467	)			(473,177	)			(475,263	)
Average tangible common equity	$	1,607,289			$	1,619,100			$	1,571,492			$	1,598,276			$	1,557,307
Net Income	$	51,623			$	55,499			$	28,319			$	204,572			$	111,515
Return on average tangible common equity (annualized)		12.85	%			13.71	%			7.21	%			12.80	%			7.16	%
TANGIBLE COMMON EQUITY	12/31/2021				9/30/2021				12/31/2020
Total stockholders’ equity	$	2,092,983			$	2,074,398			$	2,053,745
Less: Goodwill and core deposit intangible assets, net		(472,121	)			(472,630	)			(474,158	)
Tangible common equity	$	1,620,862			$	1,601,768			$	1,579,587
Total assets	$	17,889,061			$	17,799,026			$	17,106,664
Less: Goodwill and core deposit intangible assets, net		(472,121	)			(472,630	)			(474,158	)
Tangible assets	$	17,416,940			$	17,326,396			$	16,632,506
Common shares outstanding		120,006,452				120,198,061				123,264,864
Tangible common equity to tangible assets		9.31	%			9.24	%			9.50	%
Tangible common equity per share	$	13.51			$	13.33			$	12.81
	Three Months Ended												Twelve Months Ended
	12/31/2021				9/30/2021				12/31/2020				12/31/2021				12/31/2020
PRE-PROVISION NET REVENUE
Net interest income before provision (credit) for credit losses	$	133,318			$	130,296			$	120,756			$	512,770			$	467,498
Noninterest income		13,097				10,617				11,415				43,594				53,432
Revenue		146,415				140,913				132,171				556,364				520,930
Noninterest expense		74,236				75,502				71,063				293,292				283,639
Pre-provision net revenue	$	72,179			$	65,411			$	61,108			$	263,072			$	237,291

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005752/en/

Alex Ko

Senior EVP & Chief Financial Officer

213-427-6560

alex.ko@bankofhope.com

Angie Yang

SVP, Director of Investor Relations &

Corporate Communications

213-251-2219

angie.yang@bankofhope.com

Source: Hope Bancorp, Inc.

FAQ

What were Hope Bancorp's earnings for Q4 2021?

Hope Bancorp reported net income of $51.6 million for Q4 2021, or $0.43 per diluted share.

How did Hope Bancorp perform in 2021 compared to 2020?

In 2021, Hope Bancorp's net income was $204.6 million, significantly up from $111.5 million in 2020.

What were the loan origination figures for Hope Bancorp in Q4 2021?

Hope Bancorp achieved record loan originations of $1.24 billion in Q4 2021, a 23% increase from Q3 2021.

What is the future outlook for Hope Bancorp?

Hope Bancorp is optimistic for 2022, citing improved efficiencies and a focus on traditional growth.

How did the efficiency ratio change for Hope Bancorp in Q4 2021?

The efficiency ratio for Hope Bancorp improved to 50.70% in Q4 2021 from 53.58% in Q3 2021.