Hope Bancorp Reports 2022 Fourth Quarter and Full-Year Financial Results

Rhea-AI Summary

Hope Bancorp, Inc. (NASDAQ: HOPE) reported its 2022 fourth quarter financial results, posting net income of $51.7 million or $0.43 per diluted share, a slight decrease from $53.7 million in Q3 2022. Annual net income rose to $218.3 million, up from $204.6 million in 2021. Pre-provision net revenue for Q4 2022 was $78.1 million, down from $82.6 million in Q3 2022 but increased 16.2% year-over-year. Loan originations totaled $793 million in Q4 with a year-over-year increase in loans receivable of 10.4%. Nonperforming assets decreased 28% quarter-over-quarter, showcasing improvement in asset quality.

Positive

• Net income increased year-over-year by 6.6% to $218.3 million for the full year.
• Pre-provision net revenue for 2022 increased 16.2% year-over-year to $305.6 million.
• New loan originations in Q4 totaled $793 million, with a diversified production mix.
• Total nonperforming assets decreased 28.4% quarter-over-quarter, indicating improved asset quality.

Negative

• Q4 net interest income decreased 1.7% quarter-over-quarter, attributed to higher interest expenses.
• Pre-provision net revenue decreased 5.5% quarter-over-quarter.
• Net interest margin decreased 13 basis points quarter-over-quarter to 3.36%.

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, 2022.

For the three months ended December 31, 2022, net income totaled $51.7 million, or $0.43 per diluted common share. This compares with net income of $53.7 million, or $0.45 per diluted common share, in the preceding third quarter and $51.6 million, or $0.43 per diluted common share, in the year-ago fourth quarter. Pre-provision net revenue⁽¹⁾ totaled $78.1 million for the 2022 fourth quarter, versus $82.6 million for the 2022 third quarter and $72.2 million for the 2021 fourth quarter.

For the full year ended December 31, 2022, net income totaled $218.3 million, or $1.81 per diluted common share, compared with $204.6 million, or $1.66 per diluted common share for the year ended December 31, 2021. Pre-provision net revenue for the full year 2022 increased 16.2% to $305.6 million from $263.1 million for 2021.

“Notwithstanding the operating environment becoming more challenging during the fourth quarter of 2022, we delivered solid financial results which reflect the benefits of the lower-risk, more diversified loan portfolio that we have built,” said Kevin S. Kim, Chairman, President and Chief Executive Officer. “Given the market’s expectations for the economic conditions to weaken further in 2023, we became even more selective with the loans that we added to the portfolio in terms of loan types and rates. New loan originations for the fourth quarter of 2022 totaled $793 million with commercial loans accounting for 54% of new production. While we had a slight decline in our loans receivable quarter-over-quarter, we closed the year with loans increasing more than 10% year-over-year, or greater than 12% when excluding SBA PPP loans. Total deposits increased 2% quarter-over-quarter, but the growth reflects increased balances of time deposits, representing in part the migration to higher-yielding deposit accounts in the current interest rate environment. The highlight of our fourth quarter was clearly the continued improvements we are experiencing in our asset quality with total nonperforming assets and total criticized loans decreasing 28% and 8%, respectively, quarter-over-quarter.

“While we are cognizant that 2023 will bring further challenges, we believe the progress we have made to strengthen and diversify our franchise over the past few years will serve us well with more sustainable earnings power. We are confident in our ability to continue strengthening franchise value during an economic downturn, while generating profitable growth that will further enhance long-term shareholder value,” said Kim.

Q4 2022 Highlights

• Loan originations totaled $793.4 million, representing a well-diversified mix of new loan production with new commercial loans accounting for 54% of total originations for the quarter.
• Loans receivable decreased 0.6% quarter-over-quarter, but increased 10.4% year-over-year. Excluding PPP, loans receivable decreased 0.5% quarter-over-quarter, but increased 12.2% year-over-year.
• Criticized loan balances decreased 8.0% quarter-over-quarter, or 47.7% year-over-year.
• Total nonperforming assets declined 28.4% quarter-over-quarter and represented 0.36% of total assets at year-end.
• Company recorded a provision for credit losses of $8.2 million, primarily to account for declines in certain projected macroeconomic factors.
• Net interest income decreased 1.7% quarter-over-quarter, but increased 12.9% year-over-year.
• Net interest margin decreased 13 basis points quarter-over-quarter, but increased 23 basis points year-over-year.
• Total deposits increased 1.5% quarter-over-quarter and 4.6% year-over-year.
• Total cost of deposits increased 83 basis points quarter-over-quarter and 139 basis points year-over-year, reflecting the impact of an aggregate increase of 425 basis points in the Federal Funds target rates during 2022.
• Pre-provision net revenue decreased 5.5% quarter-over-quarter, but increased 8.2% year-over-year.

______________

⁽¹⁾ Pre-provision net revenue, a non-GAAP financial measure, represents the sum of net interest income before provision (credit) for credit losses and noninterest income less noninterest expense. Management’s reasons and purposes for using this non-GAAP financial measure are set forth on Page 7 of this earnings release. A quantitative reconciliation of the most directly comparable GAAP to this non-GAAP financial measures is provided in the accompanying financial information on Table Page 10.

Financial Highlights

	At or for the Three Months Ended
(dollars in thousands, except per share data) (unaudited)	12/31/2022				9/30/2022				12/31/2021
Net income	$	51,703			$	53,748			$	51,623
Diluted earnings per share	$	0.43			$	0.45			$	0.43
Pre-provision net revenue (“PPNR”) (1)	$	78,113			$	82,627			$	72,179
Net interest income before provision for credit losses	$	150,521			$	153,186			$	133,318
Net interest margin		3.36	%			3.49	%			3.13	%
Noninterest income	$	12,110			$	13,355			$	13,097
Noninterest expense	$	84,518			$	83,914			$	74,236
Net loans receivable	$	15,241,181			$	15,330,626			$	13,812,193
Deposits	$	15,738,801			$	15,502,209			$	15,040,450
Total cost of deposits		1.62	%			0.79	%			0.23	%
Nonaccrual loans(2)	$	49,687			$	64,571			$	54,616
Nonperforming loans to loans receivable(2)		0.44	%			0.62	%			0.78	%
ACL to loans receivable		1.05	%			1.04	%			1.01	%
ACL to nonaccrual loans(2)		326.76	%			248.66	%			257.34	%
ACL to nonperforming assets(2)		233.82	%			165.55	%			125.76	%
Provision for credit losses	$	8,200			$	9,200			$	1,500
Net charge offs (recoveries)	$	6,402			$	219			$	(2,276	)
Return on average assets (“ROA”)		1.10	%			1.17	%			1.16	%
Return on average equity (“ROE”)		10.35	%			10.58	%			9.93	%
ROA (PPNR) (1)		1.66	%			1.79	%			1.62	%
ROE (PPNR) (1)		15.64	%			16.26	%			13.88	%
Return on average tangible common equity (“ROTCE”)(1)		13.54	%			13.77	%			12.85	%
Noninterest expense / average assets		1.79	%			1.82	%			1.67	%
Efficiency ratio		51.97	%			50.39	%			50.70	%

(1)	Pre-provision net revenue, ROA (PPNR), ROE (PPNR), and ROTCE are non-GAAP financial measures. Management’s reasons and purposes for using these non-GAAP financial measures are set forth on Table Page 10 of this earnings release. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.
(2)	Excludes delinquent SBA loans that are guaranteed and currently in liquidation.

Operating Results for the 2022 Fourth Quarter

Net interest income before provision for credit losses for the 2022 fourth quarter decreased 2% to $150.5 million from $153.2 million in the 2022 third quarter and increased 13% from $133.3 million in the 2021 fourth quarter. The Company attributed the quarter-over-quarter decrease predominantly to higher interest expense on deposits and borrowings, which more than offset higher levels of interest income due to increases in loan yields and the average balance of loans receivable.

The net interest margin for the 2022 fourth quarter decreased 13 basis points to 3.36% from 3.49% in the preceding third quarter as the increase in the cost of deposits outpaced the expansion of the yields on interest-earning assets. Compared with the year-ago fourth quarter, the net interest margin increased 23 basis points.

The weighted average yield on loans for the 2022 fourth quarter was 5.36%, up 71 basis points from 4.65% in the 2022 third quarter and up 141 basis points from the year-ago fourth quarter. The Company attributed the increases in weighted average yield on loans to the repricing of its variable rate loans following the increases in the market interest rates, as well as a significant increase in the average rate of new loans originated during the quarter and throughout the year.

The weighted average cost of deposits for the 2022 fourth quarter increased by 83 basis points to 1.62% from 0.79% in the 2022 third quarter, reflecting a 119 basis point increase in the cost of interest bearing deposits due to the accelerated pace of Federal Funds target rate hikes in the second half of the year. Compared with the year-ago fourth quarter, the weighted average cost of deposits for the 2022 fourth quarter increased 139 basis points from 0.23%, reflecting a 205 basis point increase in the cost of interest bearing deposits.

Noninterest income for the 2022 fourth quarter decreased 9% to $12.1 million from $13.4 million in the 2022 third quarter. Quarter-over-quarter reductions in the net gains on sales of SBA loans, service fees on deposit accounts and other income and fees were partially offset by an increase in net gains on sales of other loans. The decrease in other income and fees largely reflects lower swap fee income versus the preceding third quarter. During the 2022 fourth quarter, the Company sold $41.2 million in the guaranteed portion of SBA 7(a) loans and $3.5 million in retail mortgage loans, compared with $57.8 million and $3.7 million, respectively, sold in the preceding third quarter. Noninterest income for the 2021 fourth quarter totaled $13.1 million.

Noninterest expense for the 2022 fourth quarter increased 1% to $84.5 million from $83.9 million for the preceding third quarter and increased 14% from $74.2 million for the year-ago fourth quarter. The quarter-over-quarter increase largely reflects higher costs associated with earnings credit rebates. The year-over-year increase is attributed to higher salaries and employee benefits and higher costs of earnings credit rebates.

Salaries and employee benefits expense for the 2022 fourth quarter decreased to $52.7 million from $53.2 million in the preceding third quarter, largely reflecting a decrease in incentive compensation expense. Salaries and employee benefits expense for the 2021 fourth quarter totaled $44.6 million. The Company’s FTE count was 1,549 at December 31, 2022, 1,539 at September 30, 2022 and 1,476 at December 31, 2021.

Earnings credit rebates for the 2022 fourth quarter increased to $5.0 million from $4.7 million in the 2022 third quarter and $555,000 in the 2021 fourth quarter, as a result of the increases in the Federal Funds rates.

The Company’s efficiency ratio for the 2022 fourth quarter was 51.97%, compared with 50.39% in the preceding third quarter and 50.70% in the year-ago fourth quarter. Noninterest expense as a percentage of average assets was 1.79% for the 2022 fourth quarter, compared with 1.82% for the 2022 third quarter and 1.67% for the 2021 fourth quarter.

The effective tax rate for the 2022 fourth quarter was 26.1%, compared with 26.8% for the preceding third quarter and 27.0% for the year-ago fourth quarter.

Balance Sheet Summary

New loan originations during the 2022 fourth quarter totaled $793.4 million, compared with $1.35 billion in the preceding third quarter and $1.24 billion in the 2021 fourth quarter.

Following are the components of new loan production for the quarters ended December 31, 2022, September 30, 2022, and December 31, 2021.

	For the Three Months Ended
(dollars in thousands) (unaudited)	12/31/2022			9/30/2022			12/31/2021
Commercial real estate	$	302,983		$	500,826		$	573,978
Commercial		424,340			732,341			532,634
SBA		28,825			47,428			54,848
Residential mortgage		36,720			67,079			81,325
Consumer		555			1,020			70
Total new loan originations	$	793,423		$	1,348,694		$	1,242,855

At December 31, 2022, loans receivable decreased 0.6% to $15.40 billion from $15.49 billion at September 30, 2022, but increased 10.4% from $13.95 billion at December 31, 2021.

Following is the loan portfolio composition and percentage of total loans as of December 31, 2022, September 30, 2022 and December 31, 2021:

(dollars in thousands)	12/31/2022						9/30/2022						12/31/2021
(unaudited)	Balance			Percentage			Balance			Percentage			Balance			Percentage
Commercial loans	$	5,109,532		33.2	%		$	5,124,421		33.1	%		$	4,208,674		30.2	%
Real estate loans		9,414,580		61.1	%			9,504,893		61.3	%			9,105,931		65.3	%
Consumer and other loans		879,428		5.7	%			861,873		5.6	%			638,138		4.5	%
Loans receivable	$	15,403,540		100.0	%		$	15,491,187		100.0	%		$	13,952,743		100.0	%

Total deposits at December 31, 2022 increased 1.5% to $15.74 billion from $15.50 billion at September 30, 2022, largely reflecting an increase in time deposits, and increased 4.6% year-over-year from $15.04 billion at December 31, 2021. Quarter-over-quarter, noninterest bearing demand and money market and NOW deposits decreased 13.3% and 4.6%, respectively, but these decreases were more than offset by a 34.6% increase in time deposits. On a year-over-year basis, noninterest bearing demand deposits at December 31, 2022 decreased 15.7%, money market and NOW deposits decreased 9.1%, and time deposits increased 79.0%.

Following is the deposit composition as of December 31, 2022, September 30, 2022 and December 31, 2021:

(dollars in thousands) (unaudited)	12/31/2022			9/30/2022			12/31/2021
Noninterest bearing demand deposits	$	4,849,493		$	5,590,952		$	5,751,870
Money market and other		5,615,784			5,885,093			6,178,850
Saving deposits		283,464			317,841			321,377
Time deposits		4,990,060			3,708,323			2,788,353
Total deposit balances	$	15,738,801		$	15,502,209		$	15,040,450

Following is the deposit composition as a percentage of total deposits and a breakdown of cost of deposits as of and for the quarters ended December 31, 2022, September 30, 2022 and December 31, 2021:

	Deposit Breakdown									Cost of Deposits
(unaudited)	12/31/2022			9/30/2022			12/31/2021			Q4 2022			Q3 2022			Q4 2021
Noninterest bearing demand deposits	30.8	%		36.1	%		38.3	%		—	%		—	%		—	%
Money market and other	35.7	%		38.0	%		41.1	%		2.42	%		1.24	%		0.37	%
Saving deposits	1.8	%		2.0	%		2.1	%		1.29	%		1.18	%		1.18	%
Time deposits	31.7	%		23.9	%		18.5	%		2.53	%		1.27	%		0.34	%
Total deposit balances	100.0	%		100.0	%		100.0	%		1.62	%		0.79	%		0.23	%

Allowance for Credit Losses

For the 2022 fourth quarter, the Company recorded a provision for credit losses of $8.2 million, compared with $9.2 million in the preceding third quarter and $1.5 million in the 2021 fourth quarter.

Following is the allowance for credit losses and allowance coverage ratios as of December 31, 2022, September 30, 2022 and December 31, 2021:

(dollars in thousands) (unaudited)	12/31/2022				9/30/2022				12/31/2021
Allowance for credit losses	$	162,359			$	160,561			$	140,550
Allowance for credit loss/loans receivable		1.05	%			1.04	%			1.01	%
Allowance for credit losses/nonperforming loans (1)		242.26	%			168.11	%			128.75	%

(1)	Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $9.8 million, $9.9 million and $19.5 million at December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

Credit Quality

Following are the components of nonperforming assets as of December 31, 2022, September 30, 2022 and December 31, 2021:

(dollars in thousands) (unaudited)	12/31/2022			9/30/2022			12/31/2021
Loans on nonaccrual status (1)	$	49,687		$	64,571		$	54,616
Delinquent loans 90 days or more on accrual status		401			5,306			2,131
Accruing troubled debt restructured loans		16,931			25,631			52,418
Total nonperforming loans		67,019			95,508			109,165
Other real estate owned		2,418			1,480			2,597
Total nonperforming assets	$	69,437		$	96,988		$	111,762

(1)	Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $9.8 million, $9.9 million and $19.5 million at December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

Total nonperforming assets at December 31, 2022 decreased 28.4% to $69.4 million from $97.0 million at September 30, 2022 and decreased 37.9% from $111.8 million at December 31, 2021.

Following are net charge offs (recoveries) and net charge offs (recoveries) to average loans receivable on an annualized basis for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021:

	For the Three Months Ended
(dollars in thousands) (unaudited)	12/31/2022				9/30/2022				12/31/2021
Net charge offs (recoveries)	$	6,402			$	219			$	(2,276	)
Net charge offs (recoveries)/average loans receivable (annualized)		0.17	%			0.01	%			(0.07	)%

Following are the components of criticized loan balances as of December 31, 2022, September 30, 2022 and December 31, 2021:

(dollars in thousands) (unaudited)	12/31/2022			9/30/2022			12/31/2021
Special mention	$	157,263		$	79,399		$	257,194
Substandard		104,073			204,713			242,397
Total criticized loans	$	261,336		$	284,112		$	499,591

At December 31, 2022, total criticized loans decreased 8.0% quarter-over-quarter and decreased 47.7% year-over-year, representing the lowest level experienced by the Company since 2011.

Capital

At December 31, 2022, the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. Following are capital ratios for the Company as of December 31, 2022, September 30, 2022 and December 31, 2021:

(unaudited)	12/31/2022		9/30/2022		12/31/2021		Minimum Guideline for “Well-Capitalized” Bank
Common Equity Tier 1 Capital	10.55%		10.32%		11.03%		6.50%
Tier 1 Leverage Ratio	10.15%		10.25%		10.11%		5.00%
Tier 1 Risk-Based Ratio	11.15%		10.92%		11.70%		8.00%
Total Risk-Based Ratio	11.97%		11.72%		12.42%		10.00%

Following are tangible common equity (“TCE”) per share and TCE as a percentage of tangible assets as of December 31, 2022, September 30, 2022 and December 31, 2021:

(unaudited)	12/31/2022		9/30/2022		12/31/2021
Tangible common equity per share (1)	$12.96		$12.60		$13.51
Tangible common equity to tangible assets (1)	8.29%		8.09%		9.31%

(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 in the following section. A quantitative reconciliation of the most directly comparable 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 measure disclosures, including pre-provision net revenue, ROA (PPNR), ROE (PPNR), tangible common equity, tangible common equity per share, tangible assets 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 most directly comparable 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 24, 2023 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review unaudited financial results for its fourth quarter and full year ended December 31, 2022. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through January 31, 2023, replay access code 9204177.

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 $19.16 billion in total assets as of December 31, 2022. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 54 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama and Georgia. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, New York City, Northern California and Houston; commercial loan production offices in Northern California 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 news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market 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 further deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company’s allowances for credit losses; regulatory risks associated with current and future regulations; and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company’s most recent Annual Report on Form 10-K. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
Assets:	12/31/2022				9/30/2022				% change			12/31/2021				% change
Cash and due from banks	$	506,776			$	331,336			53	%		$	316,266			60	%
Investment securities		2,243,195				2,264,533			(1	)%			2,666,275			(16	)%
Federal Home Loan Bank (“FHLB”) stock and other investments		61,761				65,192			(5	)%			87,961			(30	)%
Loans held for sale, at the lower of cost or fair value		49,245				41,989			17	%			99,049			(50	)%
Loans receivable		15,403,540				15,491,187			(1	)%			13,952,743			10	%
Allowance for credit losses		(162,359	)			(160,561	)		1	%			(140,550	)		16	%
Net loans receivable		15,241,181				15,330,626			(1	)%			13,812,193			10	%
Accrued interest receivable		55,460				42,363			31	%			41,842			33	%
Premises and equipment, net		46,859				46,169			1	%			45,667			3	%
Bank owned life insurance		77,078				76,788			—	%			77,081			—	%
Goodwill		464,450				464,450			—	%			464,450			—	%
Servicing assets		11,628				11,601			—	%			10,418			12	%
Other intangible assets, net		5,726				6,212			(8	)%			7,671			(25	)%
Other assets		401,132				402,129			—	%			260,188			54	%
Total assets	$	19,164,491			$	19,083,388			—	%		$	17,889,061			7	%
Liabilities:
Deposits	$	15,738,801			$	15,502,209			2	%		$	15,040,450			5	%
FHLB and FRB borrowings		865,000				1,072,000			(19	)%			300,000			188	%
Convertible notes, net		217,148				216,913			—	%			216,209			—	%
Subordinated debentures		106,565				106,258			—	%			105,354			1	%
Accrued interest payable		26,668				11,713			128	%			4,272			524	%
Other liabilities		190,981				198,570			(4	)%			129,793			47	%
Total liabilities	$	17,145,163			$	17,107,663			—	%		$	15,796,078			9	%
Stockholders’ Equity:
Common stock, $0.001 par value	$	137			$	137			—	%		$	136			1	%
Capital surplus		1,431,003				1,428,052			—	%			1,421,698			1	%
Retained earnings		1,083,712				1,048,738			3	%			932,561			16	%
Treasury stock, at cost		(264,667	)			(264,667	)		—	%			(250,000	)		(6	)%
Accumulated other comprehensive (loss) gain, net		(230,857	)			(236,535	)		2	%			(11,412	)		(1,923	)%
Total stockholders’ equity		2,019,328				1,975,725			2	%			2,092,983			(4	)%
Total liabilities and stockholders’ equity	$	19,164,491			$	19,083,388			—	%		$	17,889,061			7	%
Common stock shares - authorized		150,000,000				150,000,000							150,000,000
Common stock shares - outstanding		119,495,209				119,479,253							120,006,452
Treasury stock shares		17,382,835				17,382,835							16,343,849

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
	Three Months Ended																Twelve Months Ended
	12/31/2022				9/30/2022			% change			12/31/2021			% change			12/31/2022			12/31/2021				% change
Interest and fees on loans	$	207,958			$	175,078		19	%		$	133,821		55	%		$	660,732		$	528,174			25	%
Interest on investment securities		14,758				13,498		9	%			10,657		38	%			52,220			35,492			47	%
Interest on federal funds sold and other investments		1,521				606		151	%			691		120	%			3,163			2,866			10	%
Total interest income		224,237				189,182		19	%			145,169		54	%			716,115			566,532			26	%
Interest on deposits		63,276				30,667		106	%			8,905		611	%			114,839			42,011			173	%
Interest on other borrowings and convertible notes		10,440				5,329		96	%			2,946		254	%			22,855			11,751			94	%
Total interest expense		73,716				35,996		105	%			11,851		522	%			137,694			53,762			156	%
Net interest income before provision (credit) for credit losses		150,521				153,186		(2	)%			133,318		13	%			578,421			512,770			13	%
Provision (credit) for credit losses		8,200				9,200		(11	)%			1,500		447	%			9,600			(12,200	)		N/A
Net interest income after provision (credit) for credit losses		142,321				143,986		(1	)%			131,818		8	%			568,821			524,970			8	%
Service fees on deposit accounts		2,159				2,535		(15	)%			1,894		14	%			8,938			7,275			23	%
International service fees		762				834		(9	)%			1,061		(28	)%			3,134			3,586			(13	)%
Loan servicing fees, net		928				981		(5	)%			747		24	%			3,588			3,367			7	%
Wire transfer fees		863				856		1	%			916		(6	)%			3,477			3,519			(1	)%
Net gains on sales of SBA loans		2,154				2,782		(23	)%			3,614		(40	)%			16,343			8,448			93	%
Net gains on sales of residential mortgage loans		20				29		(31	)%			530		(96	)%			882			4,435			(80	)%
Net gains on sales of other loans		623				117		432	%			—		100	%			193			—			100	%
Other income and fees		4,601				5,221		(12	)%			4,335		6	%			14,842			12,964			14	%
Total noninterest income		12,110				13,355		(9	)%			13,097		(8	)%			51,397			43,594			18	%
Salaries and employee benefits		52,694				53,222		(1	)%			44,608		18	%			204,719			175,151			17	%
Occupancy		7,072				6,682		6	%			7,391		(4	)%			28,267			28,898			(2	)%
Furniture and equipment		5,045				4,967		2	%			4,642		9	%			19,434			18,079			7	%
Advertising and marketing		1,869				1,739		7	%			2,329		(20	)%			7,470			8,707			(14	)%
Data processing and communications		2,860				2,469		16	%			2,789		3	%			10,683			10,331			3	%
Professional fees		1,325				1,196		11	%			2,439		(46	)%			6,314			12,168			(48	)%
FDIC assessment		1,596				1,633		(2	)%			1,366		17	%			6,248			5,109			22	%
Credit related expenses		1,040				873		19	%			873		19	%			5,897			4,400			34	%
OREO (income) expense		(425	)			378		N/A				811		N/A				315			1,638			(81	)%
Software impairment		—				—		—	%			—		—	%			—			2,146			(100	)%
Earnings credit rebates		5,002				4,685		7	%			555		801	%			10,998			1,842			497	%
Other		6,440				6,070		6	%			6,433		—	%			23,825			24,823			(4	)%
Total noninterest expense		84,518				83,914		1	%			74,236		14	%			324,170			293,292			11	%
Income before income taxes		69,913				73,427		(5	)%			70,679		(1	)%			296,048			275,272			8	%
Income tax provision		18,210				19,679		(7	)%			19,056		(4	)%			77,771			70,700			10	%
Net income	$	51,703			$	53,748		(4	)%		$	51,623		—	%		$	218,277		$	204,572			7	%
Earnings Per Common Share - Basic	$	0.43			$	0.45					$	0.43					$	1.82		$	1.67
Earnings Per Common Share - Diluted	$	0.43			$	0.45					$	0.43					$	1.81		$	1.66
Weighted Average Shares Outstanding - Basic		119,483,499				119,476,035						120,160,300						119,824,970			122,321,768
Weighted Average Shares Outstanding - Diluted		120,102,665				119,996,523						121,025,925						120,472,345			123,133,025

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
	For the Three Months Ended (Annualized)									For the Twelve Months Ended
Profitability measures:	12/31/2022			9/30/2022			12/31/2021			12/31/2022			12/31/2021
ROA	1.10	%		1.17	%		1.16	%		1.20	%		1.17	%
ROE	10.35	%		10.58	%		9.93	%		10.73	%		9.88	%
ROA (PPNR) (1)	1.66	%		1.79	%		1.62	%		1.68	%		1.51	%
ROE (PPNR) (1)	15.64	%		16.26	%		13.88	%		15.03	%		12.70	%
ROTCE (2)	13.54	%		13.77	%		12.85	%		13.97	%		12.80	%
Net interest margin	3.36	%		3.49	%		3.13	%		3.36	%		3.09	%
Efficiency ratio	51.97	%		50.39	%		50.70	%		51.47	%		52.72	%
Noninterest expense / average assets	1.79	%		1.82	%		1.67	%		1.78	%		1.68	%

(1)

ROA (PPNR) and ROE (PPNR) are non-GAAP financial measures. Management’s reasons and purposes for using these non-GAAP financial measures are set forth on Table Page 10 of this earnings release. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.

(2)

Average tangible common 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. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measure is provided in the accompanying financial information on Table Page 10.

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands)
	Three Months Ended
	12/31/2022									9/30/2022									12/31/2021
				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	$	15,393,843		$	207,958		5.36	%		$	14,925,298		$	175,078		4.65	%		$	13,447,009		$	133,821		3.95	%
Investment securities		2,254,678			14,758		2.60	%			2,366,696			13,498		2.26	%			2,674,903			10,657		1.58	%
FHLB stock and other investments		114,077			1,521		5.29	%			107,724			606		2.23	%			773,579			691		0.35	%
Total interest earning assets	$	17,762,598		$	224,237		5.01	%		$	17,399,718		$	189,182		4.31	%		$	16,895,491		$	145,169		3.41	%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing	$	5,733,448		$	34,991		2.42	%		$	6,255,271		$	19,614		1.24	%		$	5,961,363		$	5,522		0.37	%
Savings		297,128			968		1.29	%			324,487			969		1.18	%			316,758			946		1.18	%
Time deposits		4,276,655			27,317		2.53	%			3,146,432			10,084		1.27	%			2,823,613			2,437		0.34	%
Total interest bearing deposits		10,307,231			63,276		2.44	%			9,726,190			30,667		1.25	%			9,101,734			8,905		0.39	%
FHLB and FRB borrowings		838,335			6,988		3.31	%			448,837			2,393		2.12	%			216,882			648		1.19	%
Convertible notes, net		217,002			1,322		2.38	%			216,762			1,322		2.39	%			216,078			1,322		2.39	%
Subordinated debentures		102,496			2,130		8.13	%			102,182			1,614		6.18	%			101,295			976		3.77	%
Total interest bearing liabilities	$	11,465,064		$	73,716		2.55	%		$	10,493,971		$	35,996		1.36	%		$	9,635,989		$	11,851		0.49	%
Noninterest bearing demand deposits		5,174,217									5,719,155									5,967,251
Total funding liabilities/cost of funds	$	16,639,281					1.76	%		$	16,213,126					0.88	%		$	15,603,240					0.30	%
Net interest income/net interest spread				$	150,521		2.46	%					$	153,186		2.95	%					$	133,318		2.92	%
Net interest margin							3.36	%								3.49	%								3.13	%
Cost of deposits:
Noninterest bearing demand deposits	$	5,174,217		$	—		—	%		$	5,719,155		$	—		—	%		$	5,967,251		$	—		—	%
Interest bearing deposits		10,307,231			63,276		2.44	%			9,726,190			30,667		1.25	%			9,101,734			8,905		0.39	%
Total deposits	$	15,481,448		$	63,276		1.62	%		$	15,445,345		$	30,667		0.79	%		$	15,068,985		$	8,905		0.23	%

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands)
	Twelve Months Ended
	12/31/2022									12/31/2021
				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	$	14,634,627		$	660,732		4.51	%		$	13,343,431		$	528,174		3.96	%
Investment securities		2,415,621			52,220		2.16	%			2,392,589			35,492		1.48	%
FHLB stock and other investments		176,313			3,163		1.79	%			844,010			2,866		0.34	%
Total interest earning assets	$	17,226,561		$	716,115		4.16	%		$	16,580,030		$	566,532		3.42	%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing	$	6,202,104		$	68,961		1.11	%		$	5,657,958		$	22,867		0.40	%
Savings		315,775			3,802		1.20	%			309,295			3,623		1.17	%
Time deposits		3,084,851			42,076		1.36	%			3,178,722			15,521		0.49	%
Total interest bearing deposits		9,602,730			114,839		1.20	%			9,145,975			42,011		0.46	%
FHLB and FRB borrowings		528,342			11,525		2.18	%			208,721			2,561		1.23	%
Convertible notes, net		216,654			5,289		2.41	%			215,633			5,289		2.42	%
Subordinated debentures		102,037			6,041		5.84	%			100,848			3,901		3.82	%
Total interest bearing liabilities	$	10,449,763		$	137,694		1.32	%		$	9,671,177		$	53,762		0.56	%
Noninterest bearing demand deposits		5,569,534									5,581,803
Total funding liabilities/cost of funds	$	16,019,297					0.86	%		$	15,252,980					0.35	%
Net interest income/net interest spread				$	578,421		2.84	%					$	512,770		2.86	%
Net interest margin							3.36	%								3.09	%
Cost of deposits:
Noninterest bearing demand deposits	$	5,569,534		$	—		—	%		$	5,581,803		$	—		—	%
Interest bearing deposits		9,602,730			114,839		1.20	%			9,145,975			42,011		0.46	%
Total deposits	$	15,172,264		$	114,839		0.76	%		$	14,727,778		$	42,011		0.29	%

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands)
	Three Months Ended																		Twelve Months Ended
AVERAGE BALANCES:	12/31/2022				9/30/2022				% change			12/31/2021				% change			12/31/2022			12/31/2021			% change
Loans, including loans held for sale	$	15,393,843			$	14,925,298			3	%		$	13,447,009			14	%		$	14,634,627		$	13,343,431		10	%
Investments		2,368,755				2,474,420			(4	)%			3,448,482			(31	)%			2,591,934			3,236,599		(20	)%
Interest earning assets		17,762,598				17,399,718			2	%			16,895,491			5	%			17,226,561			16,580,030		4	%
Total assets		18,863,726				18,428,874			2	%			17,834,345			6	%			18,231,609			17,467,665		4	%
Interest bearing deposits		10,307,231				9,726,190			6	%			9,101,734			13	%			9,602,730			9,145,975		5	%
Interest bearing liabilities		11,465,064				10,493,971			9	%			9,635,989			19	%			10,449,763			9,671,177		8	%
Noninterest bearing demand deposits		5,174,217				5,719,155			(10	)%			5,967,251			(13	)%			5,569,534			5,581,803		—	%
Stockholders’ equity		1,997,460				2,032,362			(2	)%			2,079,694			(4	)%			2,034,027			2,071,453		(2	)%
Net interest earning assets		6,297,534				6,905,747			(9	)%			7,259,502			(13	)%			6,776,798			6,908,853		(2	)%
LOAN PORTFOLIO COMPOSITION:	12/31/2022				9/30/2022				% change			12/31/2021				% change
Commercial loans	$	5,109,532			$	5,124,421			—	%		$	4,208,674			21	%
Real estate loans		9,414,580				9,504,893			(1	)%			9,105,931			3	%
Consumer and other loans		879,428				861,873			2	%			638,138			38	%
Loans, net of deferred loan fees and costs		15,403,540				15,491,187			(1	)%			13,952,743			10	%
Allowance for credit losses		(162,359	)			(160,561	)		1	%			(140,550	)		16	%
Loans receivable, net	$	15,241,181			$	15,330,626			(1	)%		$	13,812,193			10	%
REAL ESTATE LOANS BY PROPERTY TYPE:	12/31/2022				9/30/2022				% change			12/31/2021				% change
Retail buildings	$	2,585,383			$	2,632,564			(2	)%		$	2,522,976			2	%
Hotels/motels		952,579				1,091,047			(13	)%			1,308,405			(27	)%
Gas stations/car washes		1,054,720				1,056,217			—	%			1,050,730			—	%
Mixed-use facilities		848,417				825,289			3	%			854,793			(1	)%
Warehouses		1,294,893				1,271,104			2	%			1,244,339			4	%
Multifamily		1,295,644				1,199,320			8	%			744,068			74	%
Other		1,382,944				1,429,352			(3	)%			1,380,620			—	%
Total	$	9,414,580			$	9,504,893			(1	)%		$	9,105,931			3	%
DEPOSIT COMPOSITION	12/31/2022				9/30/2022				% change			12/31/2021				% change
Noninterest bearing demand deposits	$	4,849,493			$	5,590,952			(13	)%		$	5,751,870			(16	)%
Money market and other		5,615,784				5,885,093			(5	)%			6,178,850			(9	)%
Saving deposits		283,464				317,841			(11	)%			321,377			(12	)%
Time deposits		4,990,060				3,708,323			35	%			2,788,353			79	%
Total deposits	$	15,738,801			$	15,502,209			2	%		$	15,040,450			5	%

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
CAPITAL RATIOS:	12/31/2022				9/30/2022				12/31/2021
Total stockholders’ equity	$	2,019,328			$	1,975,725			$	2,092,983
Common equity tier 1 ratio		10.55	%			10.32	%			11.03	%
Tier 1 risk-based capital ratio		11.15	%			10.92	%			11.70	%
Total risk-based capital ratio		11.97	%			11.72	%			12.42	%
Tier 1 leverage ratio		10.15	%			10.25	%			10.11	%
Total risk weighted assets	$	17,049,410			$	17,065,355			$	15,036,292
Book value per common share	$	16.90			$	16.54			$	17.44
Tangible common equity to tangible assets (1)		8.29	%			8.09	%			9.31	%
Tangible common equity per share (1)	$	12.96			$	12.60			$	13.51
(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. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.
	Three Months Ended																				Twelve Months Ended
ALLOWANCE FOR CREDIT LOSSES CHANGES:	12/31/2022				9/30/2022				6/30/2022				3/31/2022				12/31/2021				12/31/2022				12/31/2021
Balance at beginning of period	$	160,561			$	151,580			$	147,450			$	140,550			$	136,774			$	140,550			$	206,741
Provision (credit) for credit losses		8,200				9,200				3,200				(11,000	)			1,500				9,600				(12,200	)
Recoveries		3,222				331				1,642				19,403				3,615				24,598				8,245
Charge offs		(9,624	)			(550	)			(712	)			(1,503	)			(1,339	)			(12,389	)			(62,236	)
Balance at end of period	$	162,359			$	160,561			$	151,580			$	147,450			$	140,550			$	162,359			$	140,550
Net charge offs (recoveries)/average loans receivable (annualized)		0.17	%			0.01	%			(0.03	)%			(0.52	)%			(0.07	)%			(0.08	)%			0.40	%
	Three Months Ended																				Twelve Months Ended
NET LOAN CHARGE OFFS (RECOVERIES):	12/31/2022				9/30/2022				6/30/2022				3/31/2022				12/31/2021				12/31/2022				12/31/2021
Real estate loans	$	2,022			$	9			$	(508	)		$	(16,418	)		$	(2,352	)		$	(14,895	)		$	51,705
Commercial loans		4,174				115				(461	)			(1,529	)			144				2,299				1,362
Consumer loans		206				95				39				47				(68	)			387				924
Total net charge offs (recoveries)	$	6,402			$	219			$	(930	)		$	(17,900	)		$	(2,276	)		$	(12,209	)		$	53,991

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands)
NONPERFORMING ASSETS:	12/31/2022				9/30/2022				6/30/2022				3/31/2022				12/31/2021
Loans on nonaccrual status (1)	$	49,687			$	64,571			$	69,522			$	52,717			$	54,616
Delinquent loans 90 days or more on accrual status		401				5,306				12,468				3,090				2,131
Accruing troubled debt restructured loans		16,931				25,631				26,572				44,555				52,418
Total nonperforming loans		67,019				95,508				108,562				100,362				109,165
Other real estate owned		2,418				1,480				2,010				2,010				2,597
Total nonperforming assets	$	69,437			$	96,988			$	110,572			$	102,372			$	111,762
Nonperforming assets/total assets		0.36	%			0.51	%			0.61	%			0.58	%			0.62	%
Nonperforming assets/loans receivable & OREO		0.45	%			0.63	%			0.76	%			0.73	%			0.80	%
Nonperforming assets/total capital		3.44	%			4.91	%			5.53	%			5.02	%			5.34	%
Nonperforming loans/loans receivable		0.44	%			0.62	%			0.75	%			0.71	%			0.78	%
Nonaccrual loans/loans receivable		0.32	%			0.42	%			0.48	%			0.37	%			0.39	%
Allowance for credit losses/loans receivable		1.05	%			1.04	%			1.04	%			1.05	%			1.01	%
Allowance for credit losses/nonaccrual loans		326.76	%			248.66	%			218.03	%			279.70	%			257.34	%
Allowance for credit losses/nonperforming loans		242.26	%			168.11	%			139.63	%			146.92	%			128.75	%
Allowance for credit losses/nonperforming assets		233.82	%			165.55	%			137.09	%			144.03	%			125.76	%
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $9.8 million, $9.9 million, $13.2 million, $17.0 million, and $19.5 million, at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively.
NONACCRUAL LOANS BY TYPE:	12/31/2022				9/30/2022				6/30/2022				3/31/2022				12/31/2021
Real estate loans	$	33,915			$	47,807			$	53,966			$	36,655			$	39,756
Commercial loans		5,620				7,675				8,206				8,686				11,025
Consumer loans		10,152				9,089				7,350				7,376				3,835
Total	$	49,687			$	64,571			$	69,522			$	52,717			$	54,616
ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:	12/31/2022				9/30/2022				6/30/2022				3/31/2022				12/31/2021
Retail buildings	$	3,331			$	5,474			$	6,337			$	24,356			$	28,483
Hotels/motels		—				—				—				—				472
Gas stations/car washes		181				185				189				193				197
Mixed-use facilities		6				2,832				2,837				2,836				2,846
Warehouses		4,940				4,988				4,770				5,321				5,366
Other (2)		8,473				12,152				12,439				11,849				15,054
Total	$	16,931			$	25,631			$	26,572			$	44,555			$	52,418
(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:	12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021
30 - 59 days	$	7,049		$	13,092		$	10,090		$	12,439		$	29,723
60 - 89 days		2,243			4,933			6,354			3,090			10,345
Total	$	9,292		$	18,025		$	16,444		$	15,529		$	40,068
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE:	12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021
Real estate loans	$	4,115		$	9,694		$	7,919		$	6,097		$	20,232
Commercial loans		3,300			6,165			3,397			5,003			3,057
Consumer loans		1,877			2,166			5,128			4,429			16,779
Total	$	9,292		$	18,025		$	16,444		$	15,529		$	40,068
CRITICIZED LOANS:	12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021
Special mention	$	157,263		$	79,399		$	95,797		$	166,958		$	257,194
Substandard		104,073			204,713			244,748			226,661			242,397
Total criticized loans	$	261,336		$	284,112		$	340,545		$	393,619		$	499,591

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 most directly comparable GAAP to non-GAAP financial measures utilized by management is provided below.
	Three Months Ended												Twelve Months Ended
RETURN ON AVERAGE TANGIBLE COMMON EQUITY	12/31/2022				9/30/2022				12/31/2021				12/31/2022				12/31/2021
Average stockholders’ equity	$	1,997,460			$	2,032,362			$	2,079,694			$	2,034,027			$	2,071,453
Less: Goodwill and core deposit intangible assets, net		(470,442	)			(470,941	)			(472,405	)			(471,176	)			(473,177	)
Average tangible common equity	$	1,527,018			$	1,561,421			$	1,607,289			$	1,562,851			$	1,598,276
Net income	$	51,703			$	53,748			$	51,623			$	218,277			$	204,572
Return on average tangible common equity (annualized)		13.54	%			13.77	%			12.85	%			13.97	%			12.80	%
TANGIBLE COMMON EQUITY	12/31/2022				9/30/2022				12/31/2021
Total stockholders’ equity	$	2,019,328			$	1,975,725			$	2,092,983
Less: Goodwill and core deposit intangible assets, net		(470,176	)			(470,662	)			(472,121	)
Tangible common equity	$	1,549,152			$	1,505,063			$	1,620,862
Total assets	$	19,164,491			$	19,083,388			$	17,889,061
Less: Goodwill and core deposit intangible assets, net		(470,176	)			(470,662	)			(472,121	)
Tangible assets	$	18,694,315			$	18,612,726			$	17,416,940
Common shares outstanding		119,495,209				119,479,253				120,006,452
Tangible common equity to tangible assets		8.29	%			8.09	%			9.31	%
Tangible common equity per share	$	12.96			$	12.60			$	13.51
	Three Months Ended												Twelve Months Ended
PRE-PROVISION NET REVENUE	12/31/2022				9/30/2022				12/31/2021				12/31/2022				12/31/2021
Net interest income before provision (credit) for credit losses	$	150,521			$	153,186			$	133,318			$	578,421			$	512,770
Noninterest income		12,110				13,355				13,097				51,397				43,594
Revenue		162,631				166,541				146,415				629,818				556,364
Less noninterest expense		84,518				83,914				74,236				324,170				293,292
Pre-provision net revenue	$	78,113			$	82,627			$	72,179			$	305,648			$	263,072
Average assets	$	18,863,726			$	18,428,874			$	17,834,345			$	18,231,609			$	17,467,665
ROA (PPNR)		1.66	%			1.79	%			1.62	%			1.68	%			1.51	%
Average stockholders’ equity		1,997,460				2,032,362				2,079,694				2,034,027				2,071,453
ROE (PPNR)		15.64	%			16.26	%			13.88	%			15.03	%			12.70	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230123005748/en/

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 Q4 2022 earnings results?

Hope Bancorp reported Q4 2022 net income of $51.7 million, or $0.43 per diluted share.

How did Hope Bancorp perform in 2022 compared to 2021?

For the full year 2022, net income rose to $218.3 million, an increase from $204.6 million in 2021.

What were the key financial metrics for Hope Bancorp in Q4 2022?

Key metrics include $78.1 million in pre-provision net revenue and $793 million in loan originations.

How much did nonperforming assets decrease for Hope Bancorp?

Nonperforming assets decreased by 28.4% quarter-over-quarter.