Hope Bancorp Reports 2024 Second Quarter Financial Results
Hope Bancorp (NASDAQ: HOPE) reported Q2 2024 net income of $25.3 million, or $0.21 per diluted share. Excluding notable items, net income was $26.6 million, or $0.22 per share. Key highlights include:
- Net interest margin expanded to 2.62%, up 7 basis points from Q1 2024
- Noninterest income increased 34% to $11.1 million, including $2.0 million from SBA loan sales
- Noninterest expense decreased 5% to $81.0 million
- Gross loans decreased slightly to $13.64 billion
- Total deposits remained stable at $14.71 billion
- Nonperforming assets decreased 37% to $67.3 million, or 0.39% of total assets
- Capital ratios improved, with Common Equity Tier 1 Capital Ratio at 12.70%
The company continues to make progress on improving financial performance following its strategic reorganization in Q4 2023. It's also planning for integration with Territorial Bancorp following their merger agreement in April 2024.
Hope Bancorp (NASDAQ: HOPE) ha riportato un utile netto nel secondo trimestre del 2024 di $25,3 milioni, ovvero $0,21 per azione diluita. Escludendo i dati notevoli, l'utile netto è stato di $26,6 milioni, pari a $0,22 per azione. I punti salienti includono:
- Il margine di interesse netto è aumentato a 2,62%, con un incremento di 7 punti base rispetto al primo trimestre del 2024
- Il reddito non da interesse è aumentato del 34% a $11,1 milioni, inclusi $2,0 milioni derivanti dalla vendita di prestiti SBA
- Le spese non da interesse sono diminuite del 5% a $81,0 milioni
- I prestiti lordi sono diminuiti leggermente a $13,64 miliardi
- I depositi totali sono rimasti stabili a $14,71 miliardi
- Gli attivi non performanti sono diminuiti del 37% a $67,3 milioni, ossia lo 0,39% degli attivi totali
- I rapporti di capitale sono migliorati, con il rapporto Common Equity Tier 1 Capital al 12,70%
L'azienda continua a fare progressi nel migliorare le prestazioni finanziarie a seguito della sua riorganizzazione strategica nel quarto trimestre del 2023. Sta anche pianificando l'integrazione con Territorial Bancorp dopo l'accordo di fusione avvenuto nell'aprile del 2024.
Hope Bancorp (NASDAQ: HOPE) reportó un ingreso neto de $25.3 millones en el segundo trimestre de 2024, o $0.21 por acción diluida. Excluyendo artículos notables, el ingreso neto fue de $26.6 millones, o $0.22 por acción. Los puntos destacados incluyen:
- El margen de interés neto se expandió al 2.62%, un aumento de 7 puntos básicos en comparación con el primer trimestre de 2024
- Los ingresos no por intereses aumentaron un 34% a $11.1 millones, incluyendo $2.0 millones de ventas de préstamos SBA
- Los gastos no por intereses disminuyeron un 5% a $81.0 millones
- Los préstamos brutos disminuyeron ligeramente a $13.64 mil millones
- Los depósitos totales se mantuvieron estables en $14.71 mil millones
- Los activos no rentables disminuyeron un 37% a $67.3 millones, o 0.39% de los activos totales
- Los ratios de capital mejoraron, con el Ratio de Capital Común de Nivel 1 en el 12.70%
La empresa continúa avanzando en la mejora del rendimiento financiero tras su reorganización estratégica en el cuarto trimestre de 2023. También está planeando la integración con Territorial Bancorp tras su acuerdo de fusión en abril de 2024.
Hope Bancorp (NASDAQ: HOPE)는 2024년 2분기에 순이익 2,530만 달러, 즉 희석주당 0.21달러를 보고했습니다. 눈에 띄는 항목을 제외할 경우 순이익은 2,660만 달러, 주당 0.22달러였습니다. 주요 하이라이트는 다음과 같습니다:
- 순이자 마진이 2.62%로 확대되어 2024년 1분기 대비 7bp 증가했습니다.
- 비이자 수익이 34% 증가하여 1,110만 달러에 도달했으며, 여기에는 SBA 대출 판매에서의 200만 달러가 포함됩니다.
- 비이자 비용이 5% 감소하여 8,100만 달러로 줄었습니다.
- 총 대출이 약간 감소하여 1,364억 달러에 이를 경우.
- 총 예치금은 1,471억 달러로 안정세를 유지했습니다.
- 비활동 자산이 37% 감소하여 6730만 달러, 즉 총 자산의 0.39%를 차지했습니다.
- 자본 비율이 개선되었으며, 보통주자본비율(Common Equity Tier 1 Capital Ratio)은 12.70%입니다.
회사는 2023년 4분기의 전략적 재편성 이후 재무 성과 개선을 위해 지속적으로 노력하고 있습니다. 또한 2024년 4월 Territorial Bancorp와의 통합을 계획하고 있습니다.
Hope Bancorp (NASDAQ: HOPE) a rapporté un revenu net de 25,3 millions de dollars au deuxième trimestre 2024, soit 0,21 $ par action diluée. En excluant les éléments notables, le revenu net était de 26,6 millions de dollars, soit 0,22 $ par action. Les principaux points forts comprennent :
- La marge d'intérêt nette s'est élargie à 2,62 %, en hausse de 7 points de base par rapport au premier trimestre 2024.
- Le revenu non d'intérêt a augmenté de 34 % pour atteindre 11,1 millions de dollars, y compris 2,0 millions de dollars provenant de ventes de prêts SBA.
- Les dépenses non d'intérêt ont diminué de 5 % pour atteindre 81,0 millions de dollars.
- Les prêts bruts ont légèrement diminué pour atteindre 13,64 milliards de dollars.
- Les dépôts totaux sont restés stables à 14,71 milliards de dollars.
- Les actifs non performants ont diminué de 37 % pour atteindre 67,3 millions de dollars, soit 0,39 % des actifs totaux.
- Les ratios de capital se sont améliorés, avec un ratio de capital de niveau 1 commun à 12,70 %.
L'entreprise continue de progresser dans l'amélioration de ses performances financières après sa réorganisation stratégique au quatrième trimestre 2023. Elle prévoit également l'intégration avec Territorial Bancorp suite à leur accord de fusion en avril 2024.
Hope Bancorp (NASDAQ: HOPE) hat im zweiten Quartal 2024 einen Nettogewinn von 25,3 Millionen USD oder 0,21 USD pro verwässerter Aktie gemeldet. Ohne bemerkenswerte Posten betrug der Nettogewinn 26,6 Millionen USD oder 0,22 USD pro Aktie. Die wichtigsten Highlights sind:
- Die Nettzinsmarge hat sich auf 2,62% erhöht, was einem Anstieg von 7 Basispunkten im Vergleich zum ersten Quartal 2024 entspricht.
- Die nichtzinsbezogenen Einnahmen sind um 34% auf 11,1 Millionen USD gestiegen, einschließlich 2,0 Millionen USD aus dem Verkauf von SBA-Darlehen.
- Die nichtzinsbezogenen Aufwendungen sind um 5% auf 81,0 Millionen USD gesunken.
- Die Bruttodarlehen sind leicht auf 13,64 Milliarden USD gesunken.
- Die Gesamtguthaben blieben stabil bei 14,71 Milliarden USD.
- Die notleidenden Vermögenswerte sind um 37% auf 67,3 Millionen USD gesunken, was 0,39% der Gesamtvermögen entspricht.
- Die Eigenkapitalquote hat sich verbessert, mit einer Eigenkapitalquote (Common Equity Tier 1 Capital Ratio) von 12,70%.
Das Unternehmen setzt seine Fortschritte bei der Verbesserung der finanziellen Leistung nach der strategischen Umstrukturierung im vierten Quartal 2023 fort. Außerdem plant es die Integration mit Territorial Bancorp nach dem Fusionsvertrag im April 2024.
- Net interest margin expanded to 2.62%, up 7 basis points from Q1 2024
- Noninterest income increased 34% to $11.1 million
- Noninterest expense decreased 5% to $81.0 million
- Nonperforming assets decreased 37% to $67.3 million, or 0.39% of total assets
- Capital ratios improved, with Common Equity Tier 1 Capital Ratio at 12.70%
- Resumed SBA loan sales, generating $2.0 million in gains
- Net income decreased slightly to $25.3 million from $25.9 million in Q1 2024
- Gross loans decreased slightly to $13.64 billion
- Net charge-offs increased to $4.4 million, or 0.13% of average loans annualized
Insights
Hope Bancorp's Q2 2024 results reveal a mixed financial picture with some positive trends amidst ongoing challenges. The bank reported net income of
Key positives include:
- Net interest margin expansion to
2.62% , up 7 basis points quarter-over-quarter - Noninterest income increase of
34% to$11.1 million , driven by resumed SBA loan sales - Noninterest expense decrease of
5% to$81.0 million , reflecting ongoing cost management efforts - Improved deposit cost control, with only a 3 basis point increase in average cost of total deposits
However, challenges persist:
- Net interest income declined
8% quarter-over-quarter to$105.9 million - Gross loans decreased slightly by
$86.6 million - Total deposits remained essentially flat
The bank's capital position remains strong, with all regulatory risk-based capital ratios expanding. The Common Equity Tier 1 Capital Ratio improved to
Overall, while Hope Bancorp is making progress in some areas, the bank still faces headwinds in loan growth and net interest income. The upcoming merger with Territorial Bancorp Inc. could provide a boost to deposits and loan diversification, potentially improving the bank's competitive position.
Hope Bancorp's Q2 2024 results highlight the ongoing challenges in the banking sector, particularly for regional banks. The modest decline in net income and loan balances reflects the competitive pressures and economic uncertainties facing the industry.
Key market trends evident from the results:
- Deposit competition: While Hope Bancorp managed to keep deposit costs relatively stable, the slight increase in cost of funds indicates ongoing competition for deposits.
- Loan demand softness: The
1% decrease in gross loans suggests continued caution among borrowers and potentially tighter lending standards. - Margin pressure: Despite the 7 basis point expansion in net interest margin, the
8% decline in net interest income underscores the challenges in the current interest rate environment. - Cost management focus: The
5% reduction in noninterest expenses reflects a broader industry trend of operational efficiency initiatives.
The planned merger with Territorial Bancorp is a strategic move that aligns with industry consolidation trends. This merger could potentially improve Hope Bancorp's competitive position by enhancing its deposit base and diversifying its loan portfolio.
For investors, the bank's strong capital position and improving efficiency are positive factors. However, the stagnant loan growth and pressure on net interest income may limit near-term upside potential. The success of the Territorial Bancorp merger integration will be important for Hope Bancorp's future performance and market positioning.
“During the 2024 second quarter, our net interest margin expanded, our operating expenses decreased, and our return on assets improved, compared with the 2024 first quarter,” said Kevin S. Kim, Chairman, President and Chief Executive Officer. “These highlights reflect continued progress towards improving our financial performance following our strategic reorganization in the fourth quarter of last year.
“Quarter-over-quarter, total deposits were essentially stable with growth in noninterest bearing demand deposits and other customer deposits largely offsetting a planned reduction in brokered time deposits. Our cost of total deposits increased by only three basis points this quarter, a sharp deceleration from the quarterly increases over the past two years. Gross loans decreased modestly quarter-over-quarter as elevated payoffs and paydowns offset growing production volumes. Given the improved conditions in the secondary markets, we resumed SBA loan sales during the second quarter. Nonperforming assets of
“Following the signing of the definitive merger agreement with Territorial Bancorp Inc. (NASDAQ: TBNK), the stock holding company of Territorial Savings Bank, on April 26, 2024, we have been diligently planning for a smooth integration,” continued Kim. “The addition of Territorial’s stable and low-cost deposit base will enhance our deposit franchise. Territorial’s residential mortgage loans, with their excellent asset quality, will accelerate the diversification of our loan portfolio. Combined, we will be the largest regional bank catering to multi-ethnic customers with full-service branches across the continental
____________________
(1) |
Net income, excluding merger-related expenses, restructuring-related charges and the FDIC special assessment (also referred to collectively as the “notable items”), is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 and 11. |
Operating Results for the 2024 Second Quarter
Net interest income. Net interest income before provision for credit losses for the 2024 second quarter totaled
Net interest margin expansion. Net interest margin for the 2024 second quarter expanded to
Cost of deposits. The quarter-over-quarter rate of change in deposit costs substantially slowed. The average cost of total deposits for the 2024 second quarter was
Noninterest income. Noninterest income for the 2024 second quarter increased to
Noninterest expense. Noninterest expense for the 2024 second quarter decreased
Salaries and employee benefits expense for the 2024 second quarter was
Tax rate. The year-to-date effective tax rate for the first half of 2024 was
____________________
(2) |
Noninterest expense, excluding merger-related expenses, restructuring-related charges and the FDIC special assessment (also referred to collectively as the “notable items”), is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 and 11. |
Balance Sheet Summary
Cash and investment securities. At June 30, 2024, cash and cash equivalents totaled
Loans. Gross loans of
The following table sets forth the loan portfolio composition at June 30, 2024, March 31, 2024, and June 30, 2023:
(dollars in thousands) (unaudited) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|||||||||||||||
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|||||||||
Commercial real estate (“CRE”) loans |
$ |
8,679,515 |
|
63.6 |
% |
|
$ |
8,707,673 |
|
63.5 |
% |
|
$ |
9,192,160 |
|
61.7 |
% |
|||
Commercial and industrial (“C&I”) loans |
|
3,854,284 |
|
|
28.3 |
% |
|
|
4,041,063 |
|
|
29.4 |
% |
|
|
4,805,126 |
|
|
32.2 |
% |
Residential mortgage and other loans |
|
1,033,203 |
|
|
7.6 |
% |
|
|
970,442 |
|
|
7.1 |
% |
|
|
867,524 |
|
|
5.8 |
% |
Loans receivable |
|
13,567,002 |
|
|
99.5 |
% |
|
|
13,719,178 |
|
|
100.0 |
% |
|
|
14,864,810 |
|
|
99.7 |
% |
Loans held for sale |
|
68,316 |
|
|
0.5 |
% |
|
|
2,763 |
|
|
— |
% |
|
|
49,246 |
|
|
0.3 |
% |
Gross loans |
$ |
13,635,318 |
|
|
100.0 |
% |
|
$ |
13,721,941 |
|
|
100.0 |
% |
|
$ |
14,914,056 |
|
|
100.0 |
% |
Deposits. Total deposits were essentially stable quarter-over-quarter, totaling
The following table sets forth the deposit composition at June 30, 2024, March 31, 2024, and June 30, 2023:
(dollars in thousands) (unaudited) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|||||||||||||||
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|||||||||
Noninterest bearing demand deposits |
$ |
3,671,192 |
|
24.9 |
% |
|
$ |
3,652,592 |
|
24.7 |
% |
|
$ |
4,229,247 |
|
27.1 |
% |
|||
Money market, interest bearing demand, and savings deposits |
|
4,907,860 |
|
|
33.4 |
% |
|
|
5,313,064 |
|
|
36.0 |
% |
|
|
4,413,079 |
|
|
28.2 |
% |
Time deposits |
|
6,132,419 |
|
|
41.7 |
% |
|
|
5,787,761 |
|
|
39.3 |
% |
|
|
6,977,026 |
|
|
44.7 |
% |
Total deposits |
$ |
14,711,471 |
|
|
100.0 |
% |
|
$ |
14,753,417 |
|
|
100.0 |
% |
|
$ |
15,619,352 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross loan-to-deposit ratio |
|
|
92.7 |
% |
|
|
|
93.0 |
% |
|
|
|
95.5 |
% |
||||||
Borrowings. Federal Home Loan Bank and Federal Reserve Bank borrowings totaled
Credit Quality and Allowance for Credit Losses
Nonperforming assets. Nonperforming assets decreased
The following table sets forth the components of nonperforming assets at June 30, 2024, March 31, 2024, and June 30, 2023:
(dollars in thousands) (unaudited) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
||||||
Loans on nonaccrual status (1) |
$ |
67,003 |
|
|
$ |
59,526 |
|
|
$ |
61,252 |
|
Accruing delinquent loans past due 90 days or more |
|
273 |
|
|
|
47,290 |
|
|
|
15,182 |
|
Total nonperforming loans |
|
67,276 |
|
|
|
106,816 |
|
|
|
76,434 |
|
Other real estate owned |
|
— |
|
|
|
— |
|
|
|
938 |
|
Total nonperforming assets |
$ |
67,276 |
|
|
$ |
106,816 |
|
|
$ |
77,372 |
|
|
|
|
|
|
|
|
|
|
|||
Nonperforming assets/total assets |
|
0.39 |
% |
|
|
0.59 |
% |
|
|
0.38 |
% |
(1) |
|
Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling |
Net charge offs and provision for credit losses. The Company recorded net charge offs of
The following table sets forth net charge offs and annualized net charge off ratios for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023:
|
For the Three Months Ended |
||||||||||
(dollars in thousands) (unaudited) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
||||||
Net charge offs (recoveries) |
$ |
4,439 |
|
|
$ |
3,536 |
|
|
$ |
(552 |
) |
Annualized net charge offs (recoveries)/average loans |
|
0.13 |
% |
|
|
0.10 |
% |
|
|
(0.01 |
)% |
For the 2024 second quarter, the Company recorded a provision for credit losses of
Allowance for credit losses. The allowance for credit losses totaled
The following table sets forth the allowance for credit losses and the coverage ratios at June 30, 2024, March 31, 2024, and June 30, 2023:
(dollars in thousands) (unaudited) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
||||||
Allowance for credit losses |
$ |
156,019 |
|
|
$ |
158,758 |
|
|
$ |
172,996 |
|
Allowance for credit losses/loans receivable |
|
1.15 |
% |
|
|
1.16 |
% |
|
|
1.16 |
% |
Capital
The Company’s capital ratios are strong and all regulatory risk-based capital ratios expanded quarter-over-quarter and year-over-year. At June 30, 2024, the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. The following table sets forth the capital ratios for the Company at June 30, 2024, March 31, 2024, and June 30, 2023:
(unaudited) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
Minimum Guideline for “Well-Capitalized” |
Common Equity Tier 1 Capital Ratio |
|
|
|
|
|
|
|
Tier 1 Capital Ratio |
|
|
|
|
|
|
|
Total Capital Ratio |
|
|
|
|
|
|
|
Leverage Ratio |
|
|
|
|
|
|
|
At June 30, 2024, total stockholders’ equity was
The following table sets forth the TCE per share and the TCE ratio at June 30, 2024, March 31, 2024, and June 30, 2023:
(unaudited) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
TCE per share |
|
|
|
|
|
TCE ratio |
|
|
|
|
|
____________________
(3] |
TCE ratio per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 and 11. |
Investor Conference Call
The Company previously announced that it will host an investor conference call on Monday, July 29, 2024, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review unaudited financial results for its second quarter ended June 30, 2024. 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 at least 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 August 5, 2024, replay access code 2112004.
Non-GAAP Financial Metrics
This news release and accompanying financial tables contain certain non-GAAP financial measure disclosures, including net income excluding notable items, earnings per share excluding notable items, noninterest expense excluding notable items, TCE per share, TCE ratio, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, efficiency ratio excluding notable items and noninterest expense / average assets excluding notable items. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operational performance and the Company’s capital levels and has included these figures in response to market participant interest in these financial metrics. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 and 11.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the first and only super regional Korean American bank in
Additional Information About the Merger and Where to Find It
In connection with the proposed merger with Territorial Bancorp Inc., Hope Bancorp, Inc. filed with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 on June 21, 2024, which included a preliminary Proxy Statement of Territorial Bancorp Inc., that also constitutes a preliminary prospectus of Hope Bancorp, Inc. This earnings release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. Territorial Bancorp shareholders are encouraged to read the Registration Statement and the Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information about the proposed merger. Territorial Bancorp shareholders will be able to obtain a free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Hope Bancorp and Territorial Bancorp at the SEC’s Internet site (www.sec.gov). Territorial Bancorp shareholders will also be able to obtain these documents, free of charge, from Territorial Bancorp at https://www.tsbhawaii.bank/tsb/investor-relations/.
Participants in Solicitation
Hope Bancorp, Inc., Territorial Bancorp and certain of their directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the merger. Information concerning Hope Bancorp’s directors and executive officers is set forth in the Proxy Statement, dated April 12, 2024 (as amended and supplemented), for its 2024 annual meeting of stockholders as filed with the SEC on Schedule 14A. Information concerning Territorial Bancorp’s participants is set forth in the Proxy Statement, dated April 16, 2024, for Territorial Bancorp’s 2024 annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the interests of those participants in the solicitation of proxies in respect of the merger may be obtained by reading the Registration Statement and Proxy Statement/Prospectus filed with the SEC.
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 Territorial Bancorp’s low-cost core deposit base, strengthening of profitability, ease of integration and diversification of franchise. 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, Hope Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The closing of the proposed transaction is subject to regulatory approvals, the approval of Territorial Bancorp shareholders, and other customary closing conditions. There is no assurance that such conditions will be met or that the proposed merger will be consummated within the expected time frame, or at all. If the transaction is consummated, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Hope Bancorp and Territorial Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees and customers, may be greater than expected; and required governmental approvals of the merger may not be obtained on its proposed terms and schedule, or without regulatory constraints that may limit growth. Other risks and uncertainties include, but are not limited to: possible further deterioration in economic conditions in Hope Bancorp’s areas of operation or elsewhere; 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 Hope Bancorp’s allowances for credit losses; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of Hope Bancorp; and diversion of management’s attention from ongoing business operations and opportunities. For additional information concerning these and other risk factors, see Hope Bancorp’s most recent Annual Report on Form 10-K. Hope Bancorp does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands, except share data) |
|||||||||||||||||
Assets: |
6/30/2024 |
|
3/31/2024 |
|
% change |
|
6/30/2023 |
|
% change |
||||||||
Cash and due from banks |
$ |
654,044 |
|
|
$ |
1,185,296 |
|
|
(44.8 |
)% |
|
$ |
2,302,339 |
|
|
(71.6 |
)% |
Investment securities |
|
2,172,859 |
|
|
|
2,277,990 |
|
|
(4.6 |
)% |
|
|
2,186,346 |
|
|
(0.6 |
)% |
Federal Home Loan Bank (“FHLB”) stock and other investments |
|
61,528 |
|
|
|
61,175 |
|
|
0.6 |
% |
|
|
60,213 |
|
|
2.2 |
% |
Gross loans, including loans held for sale |
|
13,635,318 |
|
|
|
13,721,941 |
|
|
(0.6 |
)% |
|
|
14,914,056 |
|
|
(8.6 |
)% |
Allowance for credit losses |
|
(156,019 |
) |
|
|
(158,758 |
) |
|
(1.7 |
)% |
|
|
(172,996 |
) |
|
(9.8 |
)% |
Accrued interest receivable |
|
57,645 |
|
|
|
60,316 |
|
|
(4.4 |
)% |
|
|
60,118 |
|
|
(4.1 |
)% |
Premises and equipment, net |
|
50,919 |
|
|
|
50,541 |
|
|
0.7 |
% |
|
|
50,513 |
|
|
0.8 |
% |
Goodwill and intangible assets |
|
467,583 |
|
|
|
467,984 |
|
|
(0.1 |
)% |
|
|
469,280 |
|
|
(0.4 |
)% |
Other assets |
|
431,214 |
|
|
|
421,729 |
|
|
2.2 |
% |
|
|
496,269 |
|
|
(13.1 |
)% |
Total assets |
$ |
17,375,091 |
|
|
$ |
18,088,214 |
|
|
(3.9 |
)% |
|
$ |
20,366,138 |
|
|
(14.7 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
||||||||
Deposits |
$ |
14,711,471 |
|
|
$ |
14,753,417 |
|
|
(0.3 |
)% |
|
$ |
15,619,352 |
|
|
(5.8 |
)% |
FHLB and Federal Reserve Bank (“FRB”) borrowings |
|
170,000 |
|
|
|
795,634 |
|
|
(78.6 |
)% |
|
|
2,260,000 |
|
|
(92.5 |
)% |
Subordinated debentures and convertible notes, net |
|
108,918 |
|
|
|
108,592 |
|
|
0.3 |
% |
|
|
107,632 |
|
|
1.2 |
% |
Accrued interest payable |
|
86,779 |
|
|
|
122,467 |
|
|
(29.1 |
)% |
|
|
109,236 |
|
|
(20.6 |
)% |
Other liabilities |
|
186,641 |
|
|
|
195,834 |
|
|
(4.7 |
)% |
|
|
201,920 |
|
|
(7.6 |
)% |
Total liabilities |
$ |
15,263,809 |
|
|
$ |
15,975,944 |
|
|
(4.5 |
)% |
|
$ |
18,298,140 |
|
|
(16.6 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
||||||||
Common stock, |
$ |
138 |
|
|
$ |
138 |
|
|
— |
% |
|
$ |
137 |
|
|
0.7 |
% |
Additional paid-in capital |
|
1,440,963 |
|
|
|
1,439,484 |
|
|
0.1 |
% |
|
|
1,433,788 |
|
|
0.5 |
% |
Retained earnings |
|
1,167,978 |
|
|
|
1,159,593 |
|
|
0.7 |
% |
|
|
1,127,624 |
|
|
3.6 |
% |
Treasury stock, at cost |
|
(264,667 |
) |
|
|
(264,667 |
) |
|
— |
% |
|
|
(264,667 |
) |
|
— |
% |
Accumulated other comprehensive loss, net |
|
(233,130 |
) |
|
|
(222,278 |
) |
|
(4.9 |
)% |
|
|
(228,884 |
) |
|
(1.9 |
)% |
Total stockholders’ equity |
|
2,111,282 |
|
|
|
2,112,270 |
|
|
— |
% |
|
|
2,067,998 |
|
|
2.1 |
% |
Total liabilities and stockholders’ equity |
$ |
17,375,091 |
|
|
$ |
18,088,214 |
|
|
(3.9 |
)% |
|
$ |
20,366,138 |
|
|
(14.7 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Common stock shares – authorized |
|
300,000,000 |
|
|
|
150,000,000 |
|
|
|
|
|
150,000,000 |
|
|
|
||
Common stock shares – outstanding |
|
120,731,342 |
|
|
|
120,610,029 |
|
|
|
|
|
120,014,888 |
|
|
|
||
Treasury stock shares |
|
17,382,835 |
|
|
|
17,382,835 |
|
|
|
|
|
17,382,835 |
|
|
|
||
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands, except share and per share data) |
||||||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||||||
|
6/30/2024 |
|
3/31/2024 |
|
% change |
|
6/30/2023 |
|
% change |
|
6/30/2024 |
|
6/30/2023 |
|
% change |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest and fees on loans |
$ |
209,683 |
|
$ |
213,626 |
|
(2 |
)% |
|
$ |
225,671 |
|
(7 |
)% |
|
$ |
423,309 |
|
$ |
441,606 |
|
(4 |
)% |
|||||
Interest on investment securities |
|
16,829 |
|
|
|
18,049 |
|
|
(7 |
)% |
|
|
15,534 |
|
|
8 |
% |
|
|
34,878 |
|
|
|
30,659 |
|
|
14 |
% |
Interest on cash and deposits at other banks |
|
5,284 |
|
|
|
27,183 |
|
|
(81 |
)% |
|
|
25,295 |
|
|
(79 |
)% |
|
|
32,467 |
|
|
|
30,217 |
|
|
7 |
% |
Interest on other investments and FHLB dividends |
|
805 |
|
|
|
816 |
|
|
(1 |
)% |
|
|
684 |
|
|
18 |
% |
|
|
1,621 |
|
|
|
1,379 |
|
|
18 |
% |
Total interest income |
|
232,601 |
|
|
|
259,674 |
|
|
(10 |
)% |
|
|
267,184 |
|
|
(13 |
)% |
|
|
492,275 |
|
|
|
503,861 |
|
|
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest on deposits |
|
122,577 |
|
|
|
124,033 |
|
|
(1 |
)% |
|
|
109,724 |
|
|
12 |
% |
|
|
246,610 |
|
|
|
202,072 |
|
|
22 |
% |
Interest on borrowings |
|
4,164 |
|
|
|
20,594 |
|
|
(80 |
)% |
|
|
26,771 |
|
|
(84 |
)% |
|
|
24,758 |
|
|
|
37,222 |
|
|
(33 |
)% |
Total interest expense |
|
126,741 |
|
|
|
144,627 |
|
|
(12 |
)% |
|
|
136,495 |
|
|
(7 |
)% |
|
|
271,368 |
|
|
|
239,294 |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest income before provision |
|
105,860 |
|
|
|
115,047 |
|
|
(8 |
)% |
|
|
130,689 |
|
|
(19 |
)% |
|
|
220,907 |
|
|
|
264,567 |
|
|
(17 |
)% |
Provision for credit losses |
|
1,400 |
|
|
|
2,600 |
|
|
(46 |
)% |
|
|
9,010 |
|
|
(84 |
)% |
|
|
4,000 |
|
|
|
12,330 |
|
|
(68 |
)% |
Net interest income after provision |
|
104,460 |
|
|
|
112,447 |
|
|
(7 |
)% |
|
|
121,679 |
|
|
(14 |
)% |
|
|
216,907 |
|
|
|
252,237 |
|
|
(14 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Service fees on deposit accounts |
|
2,681 |
|
|
|
2,587 |
|
|
4 |
% |
|
|
2,325 |
|
|
15 |
% |
|
|
5,268 |
|
|
|
4,546 |
|
|
16 |
% |
Net gains on sales of SBA loans |
|
1,980 |
|
|
|
— |
|
|
100 |
% |
|
|
1,872 |
|
|
6 |
% |
|
|
1,980 |
|
|
|
4,097 |
|
|
(52 |
)% |
Net gains on sales of securities available for sale |
|
425 |
|
|
|
— |
|
|
100 |
% |
|
|
— |
|
|
100 |
% |
|
|
425 |
|
|
|
— |
|
|
100 |
% |
Other income and fees |
|
5,985 |
|
|
|
5,699 |
|
|
5 |
% |
|
|
12,817 |
|
|
(53 |
)% |
|
|
11,684 |
|
|
|
19,349 |
|
|
(40 |
)% |
Total noninterest income |
|
11,071 |
|
|
|
8,286 |
|
|
34 |
% |
|
|
17,014 |
|
|
(35 |
)% |
|
|
19,357 |
|
|
|
27,992 |
|
|
(31 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Salaries and employee benefits |
|
44,107 |
|
|
|
47,577 |
|
|
(7 |
)% |
|
|
52,305 |
|
|
(16 |
)% |
|
|
91,684 |
|
|
|
109,474 |
|
|
(16 |
)% |
Occupancy |
|
6,906 |
|
|
|
6,786 |
|
|
2 |
% |
|
|
6,967 |
|
|
(1 |
)% |
|
|
13,692 |
|
|
|
14,488 |
|
|
(5 |
)% |
Furniture and equipment |
|
5,475 |
|
|
|
5,340 |
|
|
3 |
% |
|
|
5,393 |
|
|
2 |
% |
|
|
10,815 |
|
|
|
10,451 |
|
|
3 |
% |
Data processing and communications |
|
2,997 |
|
|
|
2,990 |
|
|
— |
% |
|
|
2,917 |
|
|
3 |
% |
|
|
5,987 |
|
|
|
5,739 |
|
|
4 |
% |
FDIC assessment |
|
3,003 |
|
|
|
2,926 |
|
|
3 |
% |
|
|
4,691 |
|
|
(36 |
)% |
|
|
5,929 |
|
|
|
6,472 |
|
|
(8 |
)% |
FDIC special assessment |
|
(309 |
) |
|
|
1,000 |
|
|
N/A |
|
|
|
— |
|
|
100 |
% |
|
|
691 |
|
|
|
— |
|
|
100 |
% |
Earned interest credit |
|
6,139 |
|
|
|
5,834 |
|
|
5 |
% |
|
|
5,090 |
|
|
21 |
% |
|
|
11,973 |
|
|
|
9,517 |
|
|
26 |
% |
Restructuring-related costs |
|
576 |
|
|
|
402 |
|
|
43 |
% |
|
|
— |
|
|
100 |
% |
|
|
978 |
|
|
|
— |
|
|
100 |
% |
Merger-related costs |
|
1,589 |
|
|
|
1,044 |
|
|
52 |
% |
|
|
— |
|
|
100 |
% |
|
|
2,633 |
|
|
|
— |
|
|
100 |
% |
Other noninterest expense |
|
10,504 |
|
|
|
10,940 |
|
|
(4 |
)% |
|
|
9,860 |
|
|
7 |
% |
|
|
21,444 |
|
|
|
19,816 |
|
|
8 |
% |
Total noninterest expense |
|
80,987 |
|
|
|
84,839 |
|
|
(5 |
)% |
|
|
87,223 |
|
|
(7 |
)% |
|
|
165,826 |
|
|
|
175,957 |
|
|
(6 |
)% |
Income before income taxes |
|
34,544 |
|
|
|
35,894 |
|
|
(4 |
)% |
|
|
51,470 |
|
|
(33 |
)% |
|
|
70,438 |
|
|
|
104,272 |
|
|
(32 |
)% |
Income tax provision |
|
9,274 |
|
|
|
10,030 |
|
|
(8 |
)% |
|
|
13,448 |
|
|
(31 |
)% |
|
|
19,304 |
|
|
|
27,129 |
|
|
(29 |
)% |
Net income |
$ |
25,270 |
|
|
$ |
25,864 |
|
|
(2 |
)% |
|
$ |
38,022 |
|
|
(34 |
)% |
|
$ |
51,134 |
|
|
$ |
77,143 |
|
|
(34 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Earnings per common share – diluted |
$ |
0.21 |
|
|
$ |
0.21 |
|
|
|
|
$ |
0.32 |
|
|
|
|
$ |
0.42 |
|
|
$ |
0.64 |
|
|
|
|||
Weighted average shares outstanding – diluted |
|
120,939,429 |
|
|
|
121,020,292 |
|
|
|
|
|
120,129,359 |
|
|
|
|
|
120,964,149 |
|
|
|
120,179,443 |
|
|
|
|||
Hope Bancorp, Inc. Selected Financial Data Unaudited |
||||||||||||||
|
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||||
Profitability measures (annualized): |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
6/30/2024 |
|
6/30/2023 |
|||||
Return on average assets (“ROA”) |
0.59 |
% |
|
0.54 |
% |
|
0.74 |
% |
|
0.56 |
% |
|
0.78 |
% |
ROA excluding notable items (1) |
0.62 |
% |
|
0.58 |
% |
|
0.74 |
% |
|
0.60 |
% |
|
0.78 |
% |
Return on average equity (“ROE”) |
4.82 |
% |
|
4.87 |
% |
|
7.34 |
% |
|
4.84 |
% |
|
7.49 |
% |
ROE excluding notable items (1) |
5.07 |
% |
|
5.19 |
% |
|
7.34 |
% |
|
5.13 |
% |
|
7.49 |
% |
Return on average tangible common equity (“ROTCE”) (1) |
6.20 |
% |
|
6.24 |
% |
|
9.49 |
% |
|
6.22 |
% |
|
9.70 |
% |
ROTCE excluding notable items (1) |
6.53 |
% |
|
6.66 |
% |
|
9.49 |
% |
|
6.59 |
% |
|
9.70 |
% |
Net interest margin |
2.62 |
% |
|
2.55 |
% |
|
2.70 |
% |
|
2.58 |
% |
|
2.85 |
% |
Efficiency ratio (not annualized) |
69.26 |
% |
|
68.79 |
% |
|
59.05 |
% |
|
69.02 |
% |
|
60.14 |
% |
Efficiency ratio excluding notable items (not annualized) (1) |
67.67 |
% |
|
66.81 |
% |
|
59.05 |
% |
|
67.23 |
% |
|
60.14 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
(1) ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 and 11. |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) |
||||||||||||||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||||||||||
|
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|||||||||||||||||||||||||||
|
|
|
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 |
$ |
13,591,936 |
|
$ |
209,683 |
|
6.20 |
% |
|
$ |
13,746,219 |
|
$ |
213,626 |
|
6.25 |
% |
|
$ |
15,105,212 |
|
$ |
225,671 |
|
5.99 |
% |
||||||
Investment securities |
|
2,175,379 |
|
|
|
16,829 |
|
|
3.11 |
% |
|
|
2,317,154 |
|
|
|
18,049 |
|
|
3.13 |
% |
|
|
2,243,614 |
|
|
|
15,534 |
|
|
2.78 |
% |
Interest earning cash and deposits at other banks |
|
428,062 |
|
|
|
5,284 |
|
|
4.96 |
% |
|
|
2,019,769 |
|
|
|
27,183 |
|
|
5.41 |
% |
|
|
1,996,924 |
|
|
|
25,295 |
|
|
5.08 |
% |
FHLB stock and other investments |
|
48,463 |
|
|
|
805 |
|
|
6.68 |
% |
|
|
48,136 |
|
|
|
816 |
|
|
6.82 |
% |
|
|
47,044 |
|
|
|
684 |
|
|
5.83 |
% |
Total interest earning assets |
$ |
16,243,840 |
|
|
$ |
232,601 |
|
|
5.76 |
% |
|
$ |
18,131,278 |
|
|
$ |
259,674 |
|
|
5.76 |
% |
|
$ |
19,392,794 |
|
|
$ |
267,184 |
|
|
5.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Money market, interest bearing demand and savings |
$ |
4,948,708 |
|
|
$ |
48,708 |
|
|
3.96 |
% |
|
$ |
5,072,782 |
|
|
$ |
50,145 |
|
|
3.98 |
% |
|
$ |
4,495,879 |
|
|
$ |
35,051 |
|
|
3.13 |
% |
Time deposits |
|
5,921,201 |
|
|
|
73,869 |
|
|
5.02 |
% |
|
|
5,985,501 |
|
|
|
73,888 |
|
|
4.96 |
% |
|
|
6,890,035 |
|
|
|
74,673 |
|
|
4.35 |
% |
Total interest bearing deposits |
|
10,869,909 |
|
|
|
122,577 |
|
|
4.54 |
% |
|
|
11,058,283 |
|
|
|
124,033 |
|
|
4.51 |
% |
|
|
11,385,914 |
|
|
|
109,724 |
|
|
3.87 |
% |
FHLB and FRB borrowings |
|
219,402 |
|
|
|
1,430 |
|
|
2.62 |
% |
|
|
1,683,334 |
|
|
|
17,853 |
|
|
4.27 |
% |
|
|
2,177,264 |
|
|
|
23,622 |
|
|
4.35 |
% |
Subordinated debentures and convertible notes |
|
104,822 |
|
|
|
2,734 |
|
|
10.32 |
% |
|
|
104,493 |
|
|
|
2,741 |
|
|
10.38 |
% |
|
|
199,744 |
|
|
|
3,149 |
|
|
6.24 |
% |
Total interest bearing liabilities |
$ |
11,194,133 |
|
|
$ |
126,741 |
|
|
4.55 |
% |
|
$ |
12,846,110 |
|
|
$ |
144,627 |
|
|
4.53 |
% |
|
$ |
13,762,922 |
|
|
$ |
136,495 |
|
|
3.98 |
% |
Noninterest bearing demand deposits |
|
3,666,416 |
|
|
|
|
|
|
|
3,803,870 |
|
|
|
|
|
|
|
4,366,868 |
|
|
|
|
|
|||||||||
Total funding liabilities/cost of funds |
$ |
14,860,549 |
|
|
|
|
3.43 |
% |
|
$ |
16,649,980 |
|
|
|
|
3.49 |
% |
|
$ |
18,129,790 |
|
|
|
|
3.02 |
% |
||||||
Net interest income/net interest spread |
|
|
$ |
105,860 |
|
|
1.21 |
% |
|
|
|
$ |
115,047 |
|
|
1.23 |
% |
|
|
|
$ |
130,689 |
|
|
1.55 |
% |
||||||
Net interest margin |
|
|
|
|
2.62 |
% |
|
|
|
|
|
2.55 |
% |
|
|
|
|
|
2.70 |
% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cost of deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest bearing demand deposits |
$ |
3,666,416 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
3,803,870 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
4,366,868 |
|
|
$ |
— |
|
|
— |
% |
Interest bearing deposits |
|
10,869,909 |
|
|
|
122,577 |
|
|
4.54 |
% |
|
|
11,058,283 |
|
|
|
124,033 |
|
|
4.51 |
% |
|
|
11,385,914 |
|
|
|
109,724 |
|
|
3.87 |
% |
Total deposits |
$ |
14,536,325 |
|
|
$ |
122,577 |
|
|
3.39 |
% |
|
$ |
14,862,153 |
|
|
$ |
124,033 |
|
|
3.36 |
% |
|
$ |
15,752,782 |
|
|
$ |
109,724 |
|
|
2.79 |
% |
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Six Months Ended |
|
|
|
|
|
|
||||||||||||||||||||
|
6/30/2024 |
|
6/30/2023 |
|
|
||||||||||||||||||||||
|
|
|
Interest |
|
Annualized |
|
|
|
Interest |
|
Annualized |
|
|
|
|
|
|
||||||||||
|
Average |
|
Income/ |
|
Average |
|
Average |
|
Income/ |
|
Average |
|
|
|
|
|
|
||||||||||
|
Balance |
|
Expense |
|
Yield/Cost |
|
Balance |
|
Expense |
|
Yield/Cost |
|
|
|
|
|
|
||||||||||
INTEREST EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, including loans held for sale |
$ |
13,669,078 |
|
$ |
423,309 |
|
6.23 |
% |
|
$ |
15,169,939 |
|
$ |
441,606 |
|
5.87 |
% |
|
|
|
|
|
|
||||
Investment securities |
|
2,246,266 |
|
|
|
34,878 |
|
|
3.12 |
% |
|
|
2,246,033 |
|
|
|
30,659 |
|
|
2.75 |
% |
|
|
|
|
|
|
Interest earning cash and deposits at other banks |
|
1,223,916 |
|
|
|
32,467 |
|
|
5.33 |
% |
|
|
1,239,343 |
|
|
|
30,217 |
|
|
4.92 |
% |
|
|
|
|
|
|
FHLB stock and other investments |
|
48,299 |
|
|
|
1,621 |
|
|
6.75 |
% |
|
|
47,044 |
|
|
|
1,379 |
|
|
5.91 |
% |
|
|
|
|
|
|
Total interest earning assets |
$ |
17,187,559 |
|
|
$ |
492,275 |
|
|
5.76 |
% |
|
$ |
18,702,359 |
|
|
$ |
503,861 |
|
|
5.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market, interest bearing demand and savings |
$ |
5,010,745 |
|
|
$ |
98,852 |
|
|
3.97 |
% |
|
$ |
5,043,522 |
|
|
$ |
77,276 |
|
|
3.09 |
% |
|
|
|
|
|
|
Time deposits |
|
5,953,351 |
|
|
|
147,758 |
|
|
4.99 |
% |
|
|
6,220,422 |
|
|
|
124,796 |
|
|
4.05 |
% |
|
|
|
|
|
|
Total interest bearing deposits |
|
10,964,096 |
|
|
|
246,610 |
|
|
4.52 |
% |
|
|
11,263,944 |
|
|
|
202,072 |
|
|
3.62 |
% |
|
|
|
|
|
|
FHLB and FRB borrowings |
|
951,368 |
|
|
|
19,283 |
|
|
4.08 |
% |
|
|
1,431,000 |
|
|
|
30,320 |
|
|
4.27 |
% |
|
|
|
|
|
|
Subordinated debentures and convertible notes |
|
104,657 |
|
|
|
5,475 |
|
|
10.35 |
% |
|
|
259,493 |
|
|
|
6,902 |
|
|
5.29 |
% |
|
|
|
|
|
|
Total interest bearing liabilities |
$ |
12,020,121 |
|
|
$ |
271,368 |
|
|
4.54 |
% |
|
$ |
12,954,437 |
|
|
$ |
239,294 |
|
|
3.73 |
% |
|
|
|
|
|
|
Noninterest bearing demand deposits |
|
3,735,143 |
|
|
|
|
|
|
|
4,513,659 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Total funding liabilities/cost of funds |
$ |
15,755,264 |
|
|
|
|
3.46 |
% |
|
$ |
17,468,096 |
|
|
|
|
2.76 |
% |
|
|
|
|
|
|
||||
Net interest income/net interest spread |
|
|
$ |
220,907 |
|
|
1.22 |
% |
|
|
|
$ |
264,567 |
|
|
1.70 |
% |
|
|
|
|
|
|
||||
Net interest margin |
|
|
|
|
2.58 |
% |
|
|
|
|
|
2.85 |
% |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest bearing demand deposits |
$ |
3,735,143 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
4,513,659 |
|
|
$ |
— |
|
|
— |
% |
|
|
|
|
|
|
Interest bearing deposits |
|
10,964,096 |
|
|
|
246,610 |
|
|
4.52 |
% |
|
|
11,263,944 |
|
|
|
202,072 |
|
|
3.62 |
% |
|
|
|
|
|
|
Total deposits |
$ |
14,699,239 |
|
|
$ |
246,610 |
|
|
3.37 |
% |
|
$ |
15,777,603 |
|
|
$ |
202,072 |
|
|
2.58 |
% |
|
|
|
|
|
|
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) |
||||||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||||||
AVERAGE BALANCES: |
6/30/2024 |
|
3/31/2024 |
|
% change |
|
6/30/2023 |
|
% change |
|
6/30/2024 |
|
6/30/2023 |
|
% change |
|||||||||||||
Gross loans, including loans held for sale |
$ |
13,591,936 |
|
$ |
13,746,219 |
|
(1 |
)% |
|
$ |
15,105,212 |
|
(10 |
)% |
|
$ |
13,669,078 |
|
$ |
15,169,939 |
|
(10 |
)% |
|||||
Investment securities |
|
2,175,379 |
|
|
|
2,317,154 |
|
|
(6 |
)% |
|
|
2,243,614 |
|
|
(3 |
)% |
|
|
2,246,266 |
|
|
|
2,246,033 |
|
|
— |
% |
Interest earning cash and deposits at other banks |
|
428,062 |
|
|
|
2,019,769 |
|
|
(79 |
)% |
|
|
1,996,924 |
|
|
(79 |
)% |
|
|
1,223,916 |
|
|
|
1,239,343 |
|
|
(1 |
)% |
Interest earning assets |
|
16,243,840 |
|
|
|
18,131,278 |
|
|
(10 |
)% |
|
|
19,392,794 |
|
|
(16 |
)% |
|
|
17,187,559 |
|
|
|
18,702,359 |
|
|
(8 |
)% |
Goodwill and intangible assets |
|
467,822 |
|
|
|
468,229 |
|
|
— |
% |
|
|
469,515 |
|
|
— |
% |
|
|
468,026 |
|
|
|
469,752 |
|
|
— |
% |
Total assets |
|
17,256,638 |
|
|
|
19,140,775 |
|
|
(10 |
)% |
|
|
20,468,810 |
|
|
(16 |
)% |
|
|
18,198,707 |
|
|
|
19,781,806 |
|
|
(8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing demand deposits |
|
3,666,416 |
|
|
|
3,803,870 |
|
|
(4 |
)% |
|
|
4,366,868 |
|
|
(16 |
)% |
|
|
3,735,143 |
|
|
|
4,513,659 |
|
|
(17 |
)% |
Interest bearing deposits |
|
10,869,909 |
|
|
|
11,058,283 |
|
|
(2 |
)% |
|
|
11,385,914 |
|
|
(5 |
)% |
|
|
10,964,096 |
|
|
|
11,263,944 |
|
|
(3 |
)% |
Total deposits |
|
14,536,325 |
|
|
|
14,862,153 |
|
|
(2 |
)% |
|
|
15,752,782 |
|
|
(8 |
)% |
|
|
14,699,239 |
|
|
|
15,777,603 |
|
|
— |
% |
Interest bearing liabilities |
|
11,194,133 |
|
|
|
12,846,110 |
|
|
(13 |
)% |
|
|
13,762,922 |
|
|
(19 |
)% |
|
|
12,020,121 |
|
|
|
12,954,437 |
|
|
(7 |
)% |
Stockholders’ equity |
|
2,097,108 |
|
|
|
2,126,333 |
|
|
(1 |
)% |
|
|
2,072,859 |
|
|
1 |
% |
|
|
2,111,720 |
|
|
|
2,059,583 |
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN PORTFOLIO COMPOSITION: |
6/30/2024 |
|
3/31/2024 |
|
% change |
|
6/30/2023 |
|
% change |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate (“CRE”) loans |
$ |
8,679,515 |
|
|
$ |
8,707,673 |
|
|
— |
% |
|
$ |
9,192,160 |
|
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial (“C&I”) loans |
|
3,854,284 |
|
|
|
4,041,063 |
|
|
(5 |
)% |
|
|
4,805,126 |
|
|
(20 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage and other loans |
|
1,033,203 |
|
|
|
970,442 |
|
|
6 |
% |
|
|
867,524 |
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
Loans receivable |
|
13,567,002 |
|
|
|
13,719,178 |
|
|
(1 |
)% |
|
|
14,864,810 |
|
|
(9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
61,528 |
|
|
|
2,763 |
|
|
NM |
|
|
|
49,246 |
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
13,628,530 |
|
|
|
13,721,941 |
|
|
(1 |
)% |
|
|
14,914,056 |
|
|
(9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE LOANS BY PROPERTY TYPE: |
6/30/2024 |
|
3/31/2024 |
|
% change |
|
6/30/2023 |
|
% change |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Multi-tenant retail |
$ |
1,659,083 |
|
|
$ |
1,666,153 |
|
|
— |
% |
|
$ |
1,778,068 |
|
|
(7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Industrial warehouses |
|
1,249,255 |
|
|
|
1,221,852 |
|
|
2 |
% |
|
|
1,301,075 |
|
|
(4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Multifamily |
|
1,199,215 |
|
|
|
1,212,941 |
|
|
(1 |
)% |
|
|
1,257,971 |
|
|
(5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Gas stations and car washes |
|
1,007,680 |
|
|
|
1,013,708 |
|
|
(1 |
)% |
|
|
1,042,290 |
|
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Mixed-use facilities |
|
844,993 |
|
|
|
861,613 |
|
|
(2 |
)% |
|
|
834,948 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
Hotels/motels |
|
795,253 |
|
|
|
786,198 |
|
|
1 |
% |
|
|
868,286 |
|
|
(8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Single-tenant retail |
|
655,540 |
|
|
|
667,898 |
|
|
(2 |
)% |
|
|
690,418 |
|
|
(5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Office |
|
403,861 |
|
|
|
401,392 |
|
|
1 |
% |
|
|
463,998 |
|
|
(13 |
)% |
|
|
|
|
|
|
|
|
|
|
|
All other |
|
864,635 |
|
|
|
875,918 |
|
|
(1 |
)% |
|
|
955,106 |
|
|
(9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Total CRE loans |
$ |
8,679,515 |
|
|
$ |
8,707,673 |
|
|
— |
% |
|
$ |
9,192,160 |
|
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT COMPOSITION: |
6/30/2024 |
|
3/31/2024 |
|
% change |
|
|
6/30/2023 |
|
% change |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest bearing demand deposits |
$ |
3,671,192 |
|
|
$ |
3,652,592 |
|
|
1 |
% |
|
$ |
4,229,247 |
|
|
(13 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Money market, interest bearing demand, and savings |
|
4,907,860 |
|
|
|
5,313,064 |
|
|
(8 |
)% |
|
|
4,413,079 |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
Time deposits |
|
6,132,419 |
|
|
|
5,787,761 |
|
|
6 |
% |
|
|
6,977,026 |
|
|
(12 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
$ |
14,711,471 |
|
|
$ |
14,753,417 |
|
|
— |
% |
|
$ |
15,619,352 |
|
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) |
|||||||||||||||||||||||||||||
| CAPITAL & CAPITAL RATIOS: | 6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Total stockholders’ equity | $ |
2,111,282 |
|
|
$ |
2,112,270 |
|
|
$ |
2,067,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Total capital | $ |
2,137,513 |
|
|
$ |
2,130,033 |
|
|
$ |
2,102,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Common equity tier 1 ratio |
|
12.70 |
% |
|
|
12.47 |
% |
|
|
11.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Tier 1 capital ratio |
|
13.40 |
% |
|
|
13.17 |
% |
|
|
11.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Total capital ratio |
|
14.42 |
% |
|
|
14.19 |
% |
|
|
12.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Leverage ratio |
|
11.61 |
% |
|
|
10.42 |
% |
|
|
9.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Total risk weighted assets | $ |
14,828,070 |
|
|
$ |
15,011,661 |
|
|
$ |
16,640,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Book value per common share | $ |
17.49 |
|
|
$ |
17.51 |
|
|
$ |
17.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Tangible common equity (“TCE”) per share (1) | $ |
13.61 |
|
|
$ |
13.63 |
|
|
$ |
13.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| TCE ratio (1) |
|
9.72 |
% |
|
|
9.33 |
% |
|
|
8.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
(1) |
TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10. |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES CHANGES: | 6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
6/30/2024 |
|
6/30/2023 |
||||||||||||||||
| Balance at beginning of period | $ |
158,758 |
|
|
$ |
158,694 |
|
|
$ |
158,809 |
|
|
$ |
172,996 |
|
|
$ |
163,544 |
|
|
$ |
158,694 |
|
|
$ |
162,359 |
|
||
| ASU 2022-02 day 1 adoption impact |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(407 |
) |
||
| Provision for credit losses on loans |
|
1,700 |
|
|
|
3,600 |
|
|
|
1,700 |
|
|
|
16,800 |
|
|
|
8,900 |
|
|
|
5,300 |
|
|
|
10,600 |
|
||
| Recoveries |
|
2,099 |
|
|
|
1,184 |
|
|
|
306 |
|
|
|
2,938 |
|
|
|
1,531 |
|
|
|
3,283 |
|
|
|
1,918 |
|
||
| Charge offs |
|
(6,538 |
) |
|
|
(4,720 |
) |
|
|
(2,121 |
) |
|
|
(33,925 |
) |
|
|
(979 |
) |
|
|
(11,258 |
) |
|
|
(1,474 |
) |
||
| Balance at end of period | $ |
156,019 |
|
|
$ |
158,758 |
|
|
$ |
158,694 |
|
|
$ |
158,809 |
|
|
$ |
172,996 |
|
|
$ |
156,019 |
|
|
$ |
172,996 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
|
|
|
|
|
|
|
||||||||||||
| Allowance for unfunded loan commitments | $ |
2,543 |
|
|
$ |
2,843 |
|
|
$ |
3,843 |
|
|
$ |
3,143 |
|
|
$ |
3,081 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||||||||
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
6/30/2024 |
|
6/30/2023 |
||||||||||||||||
| Provision for credit losses on loans | $ |
1,700 |
|
|
$ |
3,600 |
|
|
$ |
1,700 |
|
|
$ |
16,800 |
|
|
$ |
8,900 |
|
|
$ |
5,300 |
|
|
$ |
10,600 |
|
||
| (Credit) provision for unfunded loan commitments |
|
(300 |
) |
|
|
(1,000 |
) |
|
|
700 |
|
|
|
62 |
|
|
|
110 |
|
|
|
(1,300 |
) |
|
|
1,730 |
|
||
| Provision for credit losses | $ |
1,400 |
|
|
$ |
2,600 |
|
|
$ |
2,400 |
|
|
$ |
16,862 |
|
|
$ |
9,010 |
|
|
$ |
4,000 |
|
|
$ |
12,330 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||||||||
| NET LOAN CHARGE OFFS (RECOVERIES): | 6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
6/30/2024 |
|
6/30/2023 |
||||||||||||||||
| CRE loans | $ |
514 |
|
|
$ |
(497 |
) |
|
$ |
1,560 |
|
|
$ |
(2,227 |
) |
|
$ |
438 |
|
|
$ |
17 |
|
|
$ |
329 |
|
||
| C&I loans |
|
3,900 |
|
|
|
4,072 |
|
|
|
138 |
|
|
|
33,145 |
|
|
|
(1,091 |
) |
|
|
7,972 |
|
|
|
(895 |
) |
||
| Residential mortgage and other loans |
|
25 |
|
|
|
(39 |
) |
|
|
117 |
|
|
|
69 |
|
|
|
101 |
|
|
|
(14 |
) |
|
|
122 |
|
||
| Net loan charge offs (recoveries) | $ |
4,439 |
|
|
$ |
3,536 |
|
|
$ |
1,815 |
|
|
$ |
30,987 |
|
|
$ |
(552 |
) |
|
$ |
7,975 |
|
|
$ |
(444 |
) |
||
| Net charge offs (recoveries)/average loans (annualized) |
|
0.13 |
% |
|
|
0.10 |
% |
|
|
0.05 |
% |
|
|
0.85 |
% |
|
|
(0.01 |
)% |
|
|
0.12 |
% |
|
|
(0.01 |
)% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) |
|||||||||||||||||||||
| NONPERFORMING ASSETS: | 6/30/2024 |
3/31/2024 |
12/31/2023 |
9/30/2023 |
6/30/2023 |
||||||||||||||||
| Loans on nonaccrual status (1) | $ |
67,003 |
$ |
59,526 |
$ |
45,204 |
$ |
39,081 |
$ |
61,252 |
|||||||||||
| Accruing delinquent loans past due 90 days or more |
|
273 |
|
|
47,290 |
|
|
261 |
|
|
21,579 |
|
|
15,182 |
|
||||||
| Total nonperforming loans |
|
67,276 |
|
|
106,816 |
|
|
45,465 |
|
|
60,660 |
|
|
76,434 |
|
||||||
| Other real estate owned (“OREO”) |
|
— |
|
|
— |
|
|
63 |
|
|
1,043 |
|
|
938 |
|
||||||
| Total nonperforming assets | $ |
67,276 |
|
$ |
106,816 |
|
$ |
45,528 |
|
$ |
61,703 |
|
$ |
77,372 |
|
||||||
| Nonperforming assets/total assets |
|
0.39 |
% |
|
0.59 |
% |
|
0.24 |
% |
|
0.31 |
% |
|
0.38 |
% |
||||||
| Nonperforming loans/loans receivable |
|
0.50 |
% |
|
0.78 |
% |
|
0.33 |
% |
|
0.42 |
% |
|
0.51 |
% |
||||||
| Nonaccrual loans/loans receivable |
|
0.49 |
% |
|
0.43 |
% |
|
0.33 |
% |
|
0.27 |
% |
|
0.41 |
% |
||||||
| Allowance for credit losses/loans receivable |
|
1.15 |
% |
|
1.16 |
% |
|
1.15 |
% |
|
1.11 |
% |
|
1.16 |
% |
||||||
| Allowance for credit losses/nonperforming loans |
|
231.91 |
% |
|
148.63 |
% |
|
349.05 |
% |
|
261.80 |
% |
|
226.33 |
% |
||||||
(1) |
Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling |
||||||||||||||||||||
|
|||||||||||||||||||||
| NONACCRUAL LOANS BY TYPE: | 6/30/2024 |
3/31/2024 |
12/31/2023 |
9/30/2023 |
6/30/2023 |
||||||||||||||||
| CRE loans | $ |
27,292 |
|
$ |
37,836 |
|
$ |
33,932 |
|
$ |
26,687 |
|
$ |
29,270 |
|
||||||
| C&I loans |
|
33,456 |
|
|
15,070 |
|
|
5,013 |
|
|
4,234 |
|
|
23,042 |
|
||||||
| Residential mortgage and other loans |
|
6,255 |
|
|
6,620 |
|
|
6,259 |
|
|
8,160 |
|
|
8,940 |
|
||||||
| Total nonaccrual loans | $ |
67,003 |
|
$ |
59,526 |
|
$ |
45,204 |
|
$ |
39,081 |
|
$ |
61,252 |
|
||||||
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) |
|||||||||||||||||||
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE: |
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
||||||||||
30 - 59 days past due |
$ |
9,073 |
|
$ |
2,273 |
|
$ |
2,833 |
|
$ |
2,906 |
|
$ |
9,295 |
|||||
60 - 89 days past due |
|
552 |
|
|
|
313 |
|
|
|
1,289 |
|
|
|
506 |
|
|
|
178 |
|
Total accruing delinquent loans 30-89 days past due |
$ |
9,625 |
|
|
$ |
2,586 |
|
|
$ |
4,122 |
|
|
$ |
3,412 |
|
|
$ |
9,473 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE: |
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
||||||||||
CRE loans |
$ |
5,586 |
|
|
$ |
1,639 |
|
|
$ |
2,160 |
|
|
$ |
611 |
|
|
$ |
7,339 |
|
C&I loans |
|
2,530 |
|
|
|
551 |
|
|
|
1,643 |
|
|
|
1,168 |
|
|
|
990 |
|
Residential mortgage and other loans |
|
1,509 |
|
|
|
396 |
|
|
|
319 |
|
|
|
1,633 |
|
|
|
1,144 |
|
Total accruing delinquent loans 30-89 days past due |
$ |
9,625 |
|
|
$ |
2,586 |
|
|
$ |
4,122 |
|
|
$ |
3,412 |
|
|
$ |
9,473 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
CRITICIZED LOANS: |
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
||||||||||
Special mention loans |
$ |
204,167 |
|
|
$ |
215,183 |
|
|
$ |
178,992 |
|
|
$ |
186,600 |
|
|
$ |
210,806 |
|
Substandard loans |
|
243,635 |
|
|
|
206,350 |
|
|
|
143,449 |
|
|
|
174,161 |
|
|
|
134,203 |
|
Total criticized loans |
$ |
447,802 |
|
|
$ |
421,533 |
|
|
$ |
322,441 |
|
|
$ |
360,761 |
|
|
$ |
345,009 |
|
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands, except share and per share data) |
|||||||||||||||||||
Reconciliation of GAAP financial measures to non-GAAP financial measures |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below. | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON EQUITY (“TCE”) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
|
|
|
|
|
|
|
||||||
Total stockholders’ equity |
$ |
2,111,282 |
|
|
$ |
2,112,270 |
|
|
$ |
2,067,998 |
|
|
|
|
|
|
|
|
|
Less: Goodwill and core deposit intangible assets, net |
|
(467,583 |
) |
|
|
(467,984 |
) |
|
|
(469,280 |
) |
|
|
|
|
|
|
|
|
TCE |
$ |
1,643,699 |
|
|
$ |
1,644,286 |
|
|
$ |
1,598,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
17,375,091 |
|
|
$ |
18,088,214 |
|
|
$ |
20,366,138 |
|
|
|
|
|
|
|
|
|
Less: Goodwill and core deposit intangible assets, net |
|
(467,583 |
) |
|
|
(467,984 |
) |
|
|
(469,280 |
) |
|
|
|
|
|
|
|
|
Tangible assets |
$ |
16,907,508 |
|
|
$ |
17,620,230 |
|
|
$ |
19,896,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCE ratio |
|
9.72 |
% |
|
|
9.33 |
% |
|
|
8.04 |
% |
|
|
|
|
|
|
|
|
Common shares outstanding |
|
120,731,342 |
|
|
|
120,610,029 |
|
|
|
120,014,888 |
|
|
|
|
|
|
|
|
|
TCE per share |
$ |
13.61 |
|
|
$ |
13.63 |
|
|
$ |
13.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
RETURN ON AVERAGE TANGIBLE COMMON EQUITY |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
6/30/2024 |
|
6/30/2023 |
||||||||||
Average stockholders’ equity |
$ |
2,097,108 |
|
|
$ |
2,126,333 |
|
|
$ |
2,072,859 |
|
|
$ |
2,111,720 |
|
|
$ |
2,059,583 |
|
Less: Average goodwill and core deposit intangible assets, net |
|
(467,822 |
) |
|
|
(468,229 |
) |
|
|
(469,515 |
) |
|
|
(468,026 |
) |
|
|
(469,752 |
) |
Average TCE |
$ |
1,629,286 |
|
|
$ |
1,658,104 |
|
|
$ |
1,603,344 |
|
|
$ |
1,643,694 |
|
|
$ |
1,589,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
25,270 |
|
|
$ |
25,864 |
|
|
$ |
38,022 |
|
|
$ |
51,134 |
|
|
$ |
77,143 |
|
ROTCE (annualized) |
|
6.20 |
% |
|
|
6.24 |
% |
|
|
9.49 |
% |
|
|
6.22 |
% |
|
|
9.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
PROFITABILITY RATIOS EXCLUDING NOTABLE ITEMS |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
6/30/2024 |
|
6/30/2023 |
||||||||||
Net income |
$ |
25,270 |
|
|
$ |
25,864 |
|
|
$ |
38,022 |
|
|
$ |
51,134 |
|
|
$ |
77,143 |
|
Notable items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC special assessment expense |
|
(309 |
) |
|
|
1,000 |
|
|
|
— |
|
|
|
691 |
|
|
|
— |
|
Restructuring-related costs |
|
576 |
|
|
|
402 |
|
|
|
— |
|
|
|
978 |
|
|
|
— |
|
Merger-related costs |
|
1,589 |
|
|
|
1,044 |
|
|
|
— |
|
|
|
2,633 |
|
|
|
— |
|
Total notable items |
|
1,856 |
|
|
|
2,446 |
|
|
|
— |
|
|
|
4,302 |
|
|
|
— |
|
Less: tax provision |
|
547 |
|
|
|
719 |
|
|
|
— |
|
|
|
1,266 |
|
|
|
— |
|
Total notable items, net of tax provision |
$ |
1,309 |
|
|
$ |
1,727 |
|
|
$ |
— |
|
|
$ |
3,036 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding notable items |
$ |
26,579 |
|
|
$ |
27,591 |
|
|
$ |
38,022 |
|
|
$ |
54,170 |
|
|
$ |
77,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted common shares |
|
120,939,429 |
|
|
|
121,020,292 |
|
|
|
120,129,359 |
|
|
|
120,964,149 |
|
|
|
120,179,443 |
|
EPS excluding notable items |
$ |
0.22 |
|
|
$ |
0.23 |
|
|
$ |
0.32 |
|
|
$ |
0.45 |
|
|
$ |
0.64 |
|
Average Assets |
$ |
17,256,638 |
|
|
$ |
19,140,775 |
|
|
$ |
20,468,810 |
|
|
$ |
18,198,707 |
|
|
$ |
19,781,806 |
|
ROA excluding notable items |
|
0.62 |
% |
|
|
0.58 |
% |
|
|
0.74 |
% |
|
|
0.60 |
% |
|
|
0.78 |
% |
Average Equity |
$ |
2,097,108 |
|
|
$ |
2,126,333 |
|
|
$ |
2,072,859 |
|
|
$ |
2,111,720 |
|
|
$ |
2,059,583 |
|
ROE excluding notable items |
|
5.07 |
% |
|
|
5.19 |
% |
|
|
7.34 |
% |
|
|
5.13 |
% |
|
|
7.49 |
% |
Average TCE |
$ |
1,629,286 |
|
|
$ |
1,658,104 |
|
|
$ |
1,603,344 |
|
|
$ |
1,643,694 |
|
|
$ |
1,589,831 |
|
ROTCE excluding notable items |
|
6.53 |
% |
|
|
6.66 |
% |
|
|
9.49 |
% |
|
|
6.59 |
% |
|
|
9.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
EFFICIENCY RATIO EXCLUDING NOTABLE ITEMS |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
6/30/2024 |
|
6/30/2023 |
||||||||||
Noninterest expense |
$ |
80,987 |
|
|
$ |
84,839 |
|
|
$ |
87,223 |
|
|
$ |
165,826 |
|
|
$ |
175,957 |
|
Less: notable items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC special assessment expense |
|
309 |
|
|
|
(1,000 |
) |
|
|
— |
|
|
|
(691 |
) |
|
|
— |
|
Restructuring-related costs |
|
(576 |
) |
|
|
(402 |
) |
|
|
— |
|
|
|
(978 |
) |
|
|
— |
|
Merger-related costs |
|
(1,589 |
) |
|
|
(1,044 |
) |
|
|
— |
|
|
|
(2,633 |
) |
|
|
— |
|
Noninterest expense excluding notable items |
$ |
79,131 |
|
|
$ |
82,393 |
|
|
$ |
87,223 |
|
|
$ |
161,524 |
|
|
$ |
175,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
116,931 |
|
|
$ |
123,333 |
|
|
$ |
147,703 |
|
|
$ |
240,264 |
|
|
$ |
292,559 |
|
Efficiency ratio excluding notable items |
|
67.67 |
% |
|
|
66.81 |
% |
|
|
59.05 |
% |
|
|
67.23 |
% |
|
|
60.14 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729984484/en/
Julianna Balicka
EVP & Chief Financial Officer
213-235-3235
julianna.balicka@bankofhope.com
Angie Yang
SVP, Director of Investor Relations & Corporate Communications
213-251-2219
angie.yang@bankofhope.com
Source: Hope Bancorp, Inc.
FAQ
What was Hope Bancorp's (HOPE) net income for Q2 2024?
How did Hope Bancorp's (HOPE) net interest margin change in Q2 2024?
What was the status of Hope Bancorp's (HOPE) nonperforming assets in Q2 2024?
Did Hope Bancorp (HOPE) resume SBA loan sales in Q2 2024?
