Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding
company of Bank of Hope (the “Bank”), today reported unaudited
financial results for its three and nine-month periods ended
September 30, 2020.
For the three months ended September 30, 2020, net income
totaled $30.5 million, or $0.25 per diluted common share, compared
with $26.8 million, or $0.22 per diluted common share for the 2020
second quarter. In the year-ago third quarter, net income totaled
$42.6 million, or $0.34 per diluted common share.
“We continue to manage our business well in this most
challenging operating environment as evidenced by the many positive
trends in our 2020 third quarter,” said Kevin S. Kim, Chairman,
President and Chief Executive Officer of Hope Bancorp, Inc. “The
continued success we are having in reducing our deposit costs
resulted in a 7% quarter-over-quarter increase in net interest
income and a 12 basis point expansion in our net interest margin.
Contributing to a 23 basis point reduction in our cost of deposits,
noninterest bearing demand deposits increased 11%
quarter-over-quarter and accounted for 32% of total deposits at
quarter end. We also made significant progress during the quarter
redeploying the excess liquidity that was built up as a
precautionary measure in light of COVID-19. Altogether with our
cost containment efforts, we saw improvement in our efficiency
ratio.
“Asset quality remains top of mind as we continue to help our
borrowers manage through the impact of the pandemic. Overall,
credit trends remain stable with meaningful reductions in
nonaccrual loans and restructured loans. Underscoring the
protracted impact COVID-19 is having on the economy, we further
increased our allowance for credit losses to 1.37% of total loans
at September 30, 2020 from 1.26% at June 30, 2020. We believe we
are taking appropriate mitigating actions for the current
environment and remain confident in our ability to continue
supporting our customers and communities while delivering solid
financial performance for our shareholders.”
Q3 2020 Highlights
- Net interest income before provision for credit losses
increased 7% to $117.6 million from Q2 2020, largely benefiting
from meaningful reductions in interest expense due to lower cost of
deposits.
- Net interest margin expanded 12 basis points
quarter-over-quarter benefiting from continued reduction in deposit
costs and redeployment of excess liquidity.
- Noninterest bearing deposits increased 11% by $452 million
quarter-over-quarter and accounted for 32% of total deposits at
quarter end.
- Favorable mix-shift to lower-cost core deposits continued and
total deposit costs decreased 23 basis points
quarter-over-quarter.
- Loan originations of $782 million included $301 million in
utilization of new warehouse mortgage lines and contributed to a 2%
increase in loans receivable quarter-over-quarter, or 8%
annualized.
- Noninterest expenses were well contained, and efficiency ratio
improved to 54.31% from 55.37% in Q2 2020.
- ROA and ROTCE improved to 0.72% and 7.80%, respectively, from
0.64% and 6.94% in Q2 2020.
- Nonperforming loans decreased 16% quarter-over-quarter to
$106.2 million, or 0.81% of loans receivable.
- Allowance for credit losses increased to 1.37% of loans
receivable at September 30, 2020 from 1.26% at June 30, 2020.
Financial Highlights
(dollars in thousands, except per share
data) (unaudited)
At or for the Three Months
Ended
9/30/2020
6/30/2020
9/30/2019
Net income
$
30,490
$
26,753
$
42,592
Diluted earnings per share
$
0.25
$
0.22
$
0.34
Net interest income before provision for
credit losses
$
117,637
$
109,814
$
116,258
Net interest margin
2.91
%
2.79
%
3.25
%
Noninterest income
$
17,513
$
11,240
$
12,995
Noninterest expense
$
73,406
$
67,030
$
69,995
Net loans receivable
$
12,940,376
$
12,710,063
$
12,010,800
Deposits
$
14,008,356
$
14,123,532
$
12,234,750
Total cost of deposits
0.64
%
0.87
%
1.62
%
Nonaccrual loans (1) (2)
$
69,205
$
82,137
$
42,235
Nonperforming loans to loans receivable
(1) (2)
0.81
%
0.98
%
0.64
%
ACL to loans receivable (3)
1.37
%
1.26
%
0.78
%
ACL to nonaccrual loans (1) (2) (3)
259.88
%
196.95
%
222.28
%
ACL to nonperforming assets (1) (2)
(3)
144.36
%
109.62
%
97.06
%
Provision for credit losses
$
22,000
$
17,500
$
2,100
Net charge offs
$
3,922
$
652
$
1,822
Return on average assets (“ROA”)
0.72
%
0.64
%
1.12
%
Return on average equity (“ROE”)
5.98
%
5.31
%
8.47
%
Return on average tangible common equity
(“ROTCE”) (4)
7.80
%
6.94
%
11.11
%
Noninterest expense / average assets
1.73
%
1.60
%
1.85
%
Efficiency ratio
54.31
%
55.37
%
54.15
%
(1)
Excludes delinquent SBA loans that are
guaranteed and currently in liquidation.
(2)
Excludes purchased credit impaired (“PCI”)
loans for September 30, 2019.
(3)
Allowance for credit losses for
current-year periods were calculated under the CECL methodology
while allowance for loan losses for the prior-year period was
calculated under the incurred loss methodology.
(4)
Return on average tangible common equity
is a non-GAAP financial measure. A reconciliation of the Company’s
return on average tangible common equity is provided in the
accompanying financial information on Table Page 10.
Operating Results for the 2020 Third
Quarter
Net interest income before provision for credit losses for the
2020 third quarter increased 7% to $117.6 million from $109.8
million in the 2020 second quarter and increased 1% from $116.3
million in the 2019 third quarter. The Company attributed the
increases to significant reductions in interest expense
predominantly as a result of meaningful decreases in its total cost
of deposits each period over the past four quarters. In addition,
the Company reduced its FHLB borrowings by $300 million, or 60%,
during the 2020 third quarter as part of an initiative to deploy
excess liquidity built up in the early stages of the COVID-19
pandemic, which further reduced interest expense.
The net interest margin for the 2020 third quarter increased 12
basis points to 2.91% from 2.79% in the preceding second quarter.
The primary factor contributing to the margin expansion was a 23
basis point reduction in total cost of deposits, which benefited
net interest margin by approximately 15 basis points in the 2020
third quarter. The net interest margin for the 2019 third quarter
was 3.25%.
The weighted average yield on loans for the 2020 third quarter
was generally stable, decreasing 3 basis points to 4.20% from 4.23%
in the 2020 second quarter. In the year-ago third quarter, the
weighted average yield on loans was 5.27%.
The weighted average cost of deposits for the 2020 third quarter
decreased 23 basis points to 0.64% from 0.87% for the 2020 second
quarter and decreased 98 basis points from 1.62% for the year-ago
third quarter. The significant improvements in the weighted average
cost of deposits reflects in part the Company’s ongoing success
with its initiative to enhance its deposit mix to favor lower-cost
core deposits, as well as strategic reductions in the offering
rates on its interest bearing deposit accounts over the past four
quarters.
Noninterest income for the 2020 third quarter increased 56% to
$17.5 million from $11.2 million for the preceding second quarter
and $13.0 million for the 2019 third quarter. The largest factor
contributing to the increase was a $7.5 million net gain on the
sale of $161 million of available-for-sale investment securities.
This compares with zero in the 2020 second quarter and $153,000 in
the 2019 third quarter. In addition, net gains on sales of other
loans from sales of new residential mortgage originations increased
to $2.9 million in the 2020 third quarter from $1.7 million in the
preceding second quarter and $804,000 in the 2019 third quarter.
These increases were partially offset by a reduction in other
income and fees, which amounted to $1.7 million in the 2020 third
quarter, compared with $4.4 million in the 2020 second quarter,
largely reflecting a fair value change in derivatives as well as
lower swap fee income. In the 2019 third quarter, other income and
fees amounted to $4.9 million.
Noninterest expense for the 2020 third quarter totaled $73.4
million, compared with $67.0 million for the preceding second
quarter and $70.0 million for the 2019 third quarter. During the
2020 third quarter, the Company incurred a $3.6 million prepayment
penalty related to the early payoff of $300 million in FHLB
borrowings discussed above. There were no such fees in the
preceding second quarter or 2019 third quarter.
Salaries and employee benefits expense totaled $40.7 million,
$38.9 million and $41.6 million for the 2020 third quarter, 2020
second quarter and 2019 third quarter. As disclosed last quarter,
PPP loan origination costs of $5.2 million were deferred in the
2020 second quarter and materially reduced compensation expense for
that quarter alone. Excluding the impact of the PPP loan
origination costs in the 2020 second quarter, salaries and employee
benefits expense declined quarter-over-quarter, as the 4% workforce
reduction at the beginning of the third quarter reduced base salary
and benefits expense by $1.6 million in the 2020 third quarter.
Noninterest expense as a percentage of average assets was 1.73%
for the 2020 third quarter, 1.60% for the 2020 second quarter and
1.85% for the 2019 third quarter. Excluding the FHLB prepayment
penalty, noninterest expense as a percentage of average assets for
the 2020 third quarter was 1.64%.
The effective tax rate for the 2020 third quarter was 23.3%,
compared with 26.8% for the preceding second quarter and 25.5% in
the year-ago third quarter. The decrease in the effective tax rate
for 2020 third quarter reflects projected annual income for
2020.
Balance Sheet Summary
New loan originations funded during the 2020 third quarter
totaled $782.4 million and included non-PPP traditional SBA loan
production of $48.2 million and residential mortgage loan
originations of $102.3 million. In addition, four new warehouse
mortgage lines of credit aggregating $500 million were booked
during the 2020 third quarter, of which $301 million was funded as
of September 30, 2020 and included in new loan originations for the
2020 third quarter. For the preceding 2020 second quarter, new loan
originations funded totaled $832.0 million, including SBA PPP loan
originations of $480.1 million, traditional SBA loan production of
$5.9 million and residential mortgage loan originations of $72.3
million. In the year-ago third quarter, new loan originations
funded totaled $693.9 million, including SBA loan production of
$53.8 million and residential mortgage loan originations of $58.5
million. There were no new warehouse mortgage lines of credit
established in the 2020 second quarter and 2019 third quarter.
At September 30, 2020, loans receivable increased 1.9% to $13.12
billion from $12.87 billion at June 30, 2020 and increased 8.4%
from $12.10 billion at September 30, 2019.
Total deposits at September 30, 2020 decreased 0.8%
quarter-over-quarter to $14.01 billion from $14.12 billion at June
30, 2020, reflecting a continuing positive shift in the mix of
deposits. An increase of $452.1 million in noninterest bearing
demand deposits during the 2020 third quarter and a decrease of
$511.9 million in time deposits were the primary factors
contributing to the quarter-over-quarter change in total
deposits.
Following is the deposit composition as of September 30, 2020,
June 30, 2020 and September 30, 2019:
(dollars in thousands) (unaudited)
9/30/2020
6/30/2020
% change
9/30/2019
% change
Noninterest bearing demand deposits
$
4,488,529
$
4,036,383
11
%
$
3,033,371
48
%
Money market and other
4,763,893
4,831,679
(1)
%
3,752,274
27
%
Saving deposits
308,943
296,614
4
%
259,454
19
%
Time deposits
4,446,991
4,958,856
(10)
%
5,189,651
(14)
%
Total deposit balances
$
14,008,356
$
14,123,532
(1)
%
$
12,234,750
14
%
Following is the deposit composition as a percentage of total
deposits as of September 30, 2020, June 30, 2020 and September 30,
2019 and a breakdown of cost of deposits for the quarters ended
September 30, 2020, June 30, 2020 and September 30, 2019:
Deposit Breakdown
Cost of Deposits
(dollars in thousands) (unaudited)
9/30/2020
6/30/2020
9/30/2019
Q3 2020
Q2 2020
Q3 2019
Noninterest bearing demand deposits
32.1
%
28.6
%
24.8
%
—
%
—
%
—
%
Money market and other
34.0
%
34.2
%
30.7
%
0.53
%
0.62
%
1.82
%
Saving deposits
2.2
%
2.1
%
2.1
%
1.19
%
1.22
%
1.06
%
Time deposits
31.7
%
35.1
%
42.4
%
1.30
%
1.71
%
2.41
%
Total deposit balances
100.0
%
100.0
%
100.0
%
0.64
%
0.87
%
1.62
%
At September 30, 2020, cash and due from banks totaled $629.1
million, a 57% reduction from $1.47 billion at June 30, 2020.
During the 2020 third quarter, the Company made significant
progress in redeploying excess liquidity on its balance sheet,
which included an early payoff of $300 million in Federal Home Loan
Borrowings, which had the positive effect of increasing net
interest income by $503,000 and enhancing net interest margin by
approximately 3.5 basis points in the 2020 third quarter. Other
excess liquidity redeployment initiatives included further
reduction of higher-cost time deposits and funding new loan growth
for the quarter.
Allowance for Credit
Losses
The 2020 third quarter provision for credit losses under the
CECL methodology was $22.0 million, compared with $17.5 million for
the preceding second quarter. This compares with a provision for
loan losses under the prior incurred loss methodology of $2.1
million for the 2019 third quarter.
The provision for credit losses for the 2020 third quarter
reflects updated macroeconomic variables incorporating the Moody’s
Analytics Baseline scenario published September 2020, updated
qualitative factors in the Company’s ACL methodology, relatively
stable asset quality metrics and a low level of credit losses, as
well as additional management overlays related to COVID-19
modifications and the recognition of risk from granting longer term
modifications .
Following is the Allowance for Credit Losses as of September 30,
2020, June 30, 2020 and September 30, 2019:
(dollars in thousands) (unaudited)
9/30/2020
6/30/2020
9/30/2019
Allowance for credit losses
$
179,849
$
161,771
$
93,882
Allowance for credit loss/loans
receivable
1.37%
1.26%
0.78%
Allowance for credit losses/nonperforming
loans
169.40%
127.79%
121.37%
Credit Quality
Following are the components of nonperforming assets as of
September 30, 2020, June 30, 2020 and September 30, 2019:
(dollars in thousands) (unaudited)
9/30/2020
6/30/2020
9/30/2019
Loans on nonaccrual status (1)
$
69,205
$
82,137
$
42,235
Delinquent loans 90 days or more on
accrual status (2)
1,537
430
398
Accruing troubled debt restructured
loans
35,429
44,026
34,717
Total nonperforming loans
106,171
126,593
77,350
Other real estate owned
18,410
20,983
19,374
Total nonperforming assets
$
124,581
$
147,576
$
96,724
(1)
Excludes delinquent SBA loans that are
guaranteed and currently in liquidation totaling $26.2 million,
$30.3 million and $37.3 million, at September 30, 2020, June 30,
2020 and September 30, 2019, respectively.
(2)
Excludes PCI loans totaling $15.5 million
at September 30, 2019.
Following are the components of criticized loan balances as of
September 30, 2020, June 30, 2020 and September 30, 2019:
(dollars in thousands) (unaudited)
9/30/2020
6/30/2020
9/30/2019
Special Mention
$
153,388
$
127,149
$
139,848
Classified
318,542
299,368
268,622
Criticized
$
471,930
$
426,517
$
408,470
During the 2020 third quarter, net charge offs totaled $3.9
million, or 0.12% of average loans receivable on an annualized
basis. This compares with net charge offs of $652,000, or 0.02% of
average loans receivable on an annualized basis for the 2020 second
quarter and net charge offs for the 2019 third quarter of $1.8
million, or 0.06% of average loans receivable on an annualized
basis.
Capital
At September 30, 2020, the Company and the Bank continued to
exceed all regulatory capital requirements to be classified as a
“well-capitalized” financial institution. Following are capital
ratios for the Company as of September 30, 2020, June 30, 2020 and
September 30, 2019:
Hope Bancorp, Inc. (unaudited)
9/30/2020
6/30/2020
9/30/2019
Minimum Guideline for
“Well-Capitalized” Bank
Common Equity Tier 1 Capital
11.36%
11.50%
11.89%
6.50%
Tier 1 Leverage Ratio
10.02%
10.08%
11.18%
5.00%
Tier 1 Risk-Based Ratio
12.09%
12.24%
12.65%
8.00%
Total Risk-Based Ratio
13.19%
13.23%
13.38%
10.00%
Following are tangible common equity (“TCE”) per share and TCE
as a percentage of tangible assets as of September 30, 2020, June
30, 2020 and September 30, 2019:
(unaudited)
9/30/2020
6/30/2020
9/30/2019
Tangible common equity per share (1)
$12.70
$12.62
$12.27
Tangible common equity to tangible assets
(2)
9.63%
9.32%
10.43%
(1)
Tangible common equity represents common
equity less goodwill and net other intangible assets. Tangible
common equity per share represents tangible common equity divided
by the number of shares issued and outstanding. Both tangible
common equity and tangible common equity per share are non-GAAP
financial measures. A reconciliation of the Company’s total
stockholders’ equity to tangible common equity is provided in the
accompanying financial information on Table Page 10.
(2)
Tangible assets represent total assets
less goodwill and net other intangible assets. Tangible common
equity to tangible assets is the ratio of tangible common equity
over tangible assets. Tangible common equity to tangible assets is
a non-GAAP financial measure. A reconciliation of the Company’s
total assets to tangible assets is provided in the accompanying
financial information on Table Page 10.
Investor Conference Call
The Company previously announced that it will host an investor
conference call on Wednesday, October 21, 2020 at 9:30 a.m. Pacific
Time / 12:30 p.m. Eastern Time to review financial results for its
third quarter ended September 30, 2020. Investors and analysts are
invited to access the conference call by dialing 866-235-9917
(domestic) or 412-902-4103 (international) and asking for the “Hope
Bancorp Call.” A presentation to accompany the earnings call will
be available at the Investor Relations section of Hope Bancorp’s
website at www.ir-hopebancorp.com. Other interested parties are
invited to listen to a live webcast of the call available at the
Investor Relations section of Hope Bancorp’s website. After the
live webcast, a replay will remain available in the Investor
Relations section of Hope Bancorp’s website for one year. A
telephonic replay of the call will be available at 877-344-7529
(domestic) or 412-317-0088 (international) for one week through
October 28, 2020, replay access code 10148641.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. is the holding company of Bank of Hope, the
first and only super regional Korean-American bank in the United
States with $16.7 billion in total assets as of September 30, 2020.
Headquartered in Los Angeles and serving a multi-ethnic population
of customers across the nation, Bank of Hope operates 58
full-service branches in California, Washington, Texas, Illinois,
New York, New Jersey, Virginia and Alabama. The Bank also operates
SBA loan production offices in Seattle, Denver, Dallas, Atlanta,
Portland, Oregon, New York City, Northern California and Houston;
commercial loan production offices in Northern California and
Seattle; residential mortgage loan production offices in Southern
California; and a representative office in Seoul, Korea. Bank of
Hope specializes in core business banking products for small and
medium-sized businesses, with an emphasis in commercial real estate
and commercial lending, SBA lending and international trade
financing. Bank of Hope is a California-chartered bank, and its
deposits are insured by the FDIC to the extent provided by law.
Bank of Hope is an Equal Opportunity Lender. For additional
information, please go to bankofhope.com. By including the
foregoing website address link, the Company does not intend to and
shall not be deemed to incorporate by reference any material
contained or accessible therein.
Forward-Looking Statements
Some statements in this press release may constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements relate to, among other things, expectations regarding
the business environment in which we operate, projections of future
performance, perceived opportunities in the market and statements
regarding our business strategies, objectives and vision.
Forward-looking statements include, but are not limited to,
statements preceded by, followed by or that include the words
“will,” “believes,” “expects,” “anticipates,” “intends,” “plans,”
“estimates” or similar expressions. With respect to any such
forward-looking statements, the Company claims the protection
provided for in the Private Securities Litigation Reform Act of
1995. These statements involve risks and uncertainties. The
Company’s actual results, performance or achievements may differ
significantly from the results, performance or achievements
expressed or implied in any forward-looking statements. The risks
and uncertainties include, but are not limited to: possible
deterioration in economic conditions in our areas of operation;
interest rate risk associated with volatile interest rates and
related asset-liability matching risk; liquidity risks; risk of
significant non-earning assets, and net credit losses that could
occur, particularly in times of weak economic conditions or times
of rising interest rates; the failure of or changes to assumptions
and estimates underlying the Company’s allowances for credit
losses, regulatory risks associated with current and future
regulations, and the COVID-19 pandemic and its impact on our
financial position, results of operations, liquidity, and
capitalization. For additional information concerning these and
other risk factors, see the Company’s most recent Annual Report on
Form 10-K and Quarterly Report on Form 10-Q. The Company does not
undertake, and specifically disclaims any obligation, to update any
forward-looking statements to reflect the occurrence of events or
circumstances after the date of such statements except as required
by law.
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
Assets:
9/30/2020
6/30/2020
% change
12/31/2019
% change
9/30/2019
% change
Cash and due from banks
$
629,133
$
1,468,949
(57
)
%
$
698,567
(10
)
%
$
549,356
15
%
Securities available for sale, at fair
value
2,060,991
1,887,604
9
%
1,715,987
20
%
1,772,322
16
%
Federal Home Loan Bank (“FHLB”) stock and
other investments
97,305
98,357
(1
)
%
97,659
—
%
98,848
(2
)
%
Loans held for sale, at the lower of cost
or fair value
9,170
11,350
(19
)
%
54,271
(83
)
%
29,627
(69
)
%
Loans receivable
13,120,225
12,871,834
2
%
12,276,007
7
%
12,104,682
8
%
Allowance for credit losses
(179,849
)
(161,771
)
11
%
(94,144
)
91
%
(93,882
)
92
%
Net loans receivable
12,940,376
12,710,063
2
%
12,181,863
6
%
12,010,800
8
%
Accrued interest receivable
57,989
52,859
10
%
30,772
88
%
29,743
95
%
Premises and equipment, net
49,552
51,029
(3
)
%
52,012
(5
)
%
52,604
(6
)
%
Bank owned life insurance
77,388
77,050
—
%
76,339
1
%
75,968
2
%
Goodwill
464,450
464,450
—
%
464,450
—
%
464,450
—
%
Servicing assets
13,718
14,164
(3
)
%
16,417
(16
)
%
17,865
(23
)
%
Other intangible assets, net
10,239
10,770
(5
)
%
11,833
(13
)
%
12,390
(17
)
%
Other assets
323,456
322,417
—
%
267,270
21
%
265,905
22
%
Total assets
$
16,733,767
$
17,169,062
(3
)
%
$
15,667,440
7
%
$
15,379,878
9
%
Liabilities:
Deposits
$
14,008,356
$
14,123,532
(1
)
%
$
12,527,364
12
%
$
12,234,750
14
%
FHLB advances
200,000
500,000
(60
)
%
625,000
(68
)
%
625,000
(68
)
%
Convertible notes, net
203,270
201,987
1
%
199,458
2
%
198,211
3
%
Subordinated debentures
103,889
103,602
—
%
103,035
1
%
102,755
1
%
Accrued interest payable
21,991
26,093
(16
)
%
33,810
(35
)
%
38,197
(42
)
%
Other liabilities
155,700
183,072
(15
)
%
142,762
9
%
149,681
4
%
Total liabilities
$
14,693,206
$
15,138,286
(3
)
%
$
13,631,429
8
%
$
13,348,594
10
%
Stockholders’ Equity:
Common stock, $0.001 par value
$
136
$
136
—
%
$
136
—
%
$
136
—
%
Capital surplus
1,432,773
1,430,757
—
%
1,428,066
—
%
1,426,666
—
%
Retained earnings
774,970
761,734
2
%
762,480
2
%
737,209
5
%
Treasury stock, at cost
(200,000
)
(200,000
)
—
%
(163,820
)
22
%
(150,000
)
33
%
Accumulated other comprehensive gain,
net
32,682
38,149
(14
)
%
9,149
257
%
17,273
89
%
Total stockholders’ equity
2,040,561
2,030,776
—
%
2,036,011
—
%
2,031,284
—
%
Total liabilities and stockholders’
equity
$
16,733,767
$
17,169,062
(3
)
%
$
15,667,440
7
%
$
15,379,878
9
%
Common stock shares - authorized
150,000,000
150,000,000
150,000,000
150,000,000
Common stock shares - outstanding
123,260,760
123,239,276
125,756,543
126,697,925
Treasury stock shares
12,661,581
12,661,581
9,945,547
9,002,453
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
Three Months Ended
Nine Months Ended
9/30/2020
6/30/2020
% change
9/30/2019
% change
9/30/2020
9/30/2019
% change
Interest and fees on loans
$
134,430
$
134,190
—
%
$
158,115
(15
)
%
$
422,850
$
474,878
(11
)
%
Interest on securities
9,848
9,891
—
%
11,373
(13
)
%
30,348
35,558
(15
)
%
Interest on federal funds sold and other
investments
942
980
(4
)
%
2,929
(68
)
%
3,951
8,577
(54
)
%
Total interest income
145,220
145,061
—
%
172,417
(16
)
%
457,149
519,013
(12
)
%
Interest on deposits
22,871
29,451
(22
)
%
49,057
(53
)
%
93,435
144,730
(35
)
%
Interest on other borrowings and
convertible notes
4,712
5,796
(19
)
%
7,102
(34
)
%
16,972
21,196
(20
)
%
Total interest expense
27,583
35,247
(22
)
%
56,159
(51
)
%
110,407
165,926
(33
)
%
Net interest income before provision for
credit losses
117,637
109,814
7
%
116,258
1
%
346,742
353,087
(2
)
%
Provision for credit losses
22,000
17,500
26
%
2,100
948
%
67,500
6,300
971
%
Net interest income after provision for
credit losses
95,637
92,314
4
%
114,158
(16
)
%
279,242
346,787
(19
)
%
Service fees on deposit accounts
2,736
2,583
6
%
4,690
(42
)
%
9,452
13,423
(30
)
%
International service fees
987
667
48
%
1,193
(17
)
%
2,443
3,146
(22
)
%
Loan servicing fees, net
772
1,106
(30
)
%
189
308
%
2,243
1,656
35
%
Wire transfer fees
892
820
9
%
1,058
(16
)
%
2,710
3,458
(22
)
%
Net gains on sales of other loans
2,853
1,678
70
%
804
255
%
6,386
2,611
145
%
Net gains on sales of securities available
for sale
7,531
—
100
%
153
4,822
%
7,531
282
2,571
%
Other income and fees
1,742
4,386
(60
)
%
4,908
(65
)
%
11,252
12,128
(7
)
%
Total noninterest income
17,513
11,240
56
%
12,995
35
%
42,017
36,704
14
%
Salaries and employee benefits
40,659
38,850
5
%
41,607
(2
)
%
122,011
121,333
1
%
Occupancy
7,264
7,043
3
%
7,703
(6
)
%
21,717
23,219
(6
)
%
Furniture and equipment
4,513
4,654
(3
)
%
3,851
17
%
13,426
11,323
19
%
Advertising and marketing
1,601
1,315
22
%
2,377
(33
)
%
4,589
6,684
(31
)
%
Data processing and communications
2,204
2,274
(3
)
%
2,821
(22
)
%
7,109
8,364
(15
)
%
Professional fees
1,513
1,510
—
%
5,241
(71
)
%
6,323
16,580
(62
)
%
FDIC assessment
1,167
1,652
(29
)
%
—
100
%
4,378
3,110
41
%
Credit related expenses
1,793
1,361
32
%
1,031
74
%
4,816
3,258
48
%
OREO expense (income), net
1,770
1,338
32
%
(743
)
N/A
3,951
(812
)
N/A
FHLB prepayment fee
3,584
—
100
%
—
100
%
3,584
—
100
%
Other
7,338
7,033
4
%
6,107
20
%
20,672
19,140
8
%
Total noninterest expense
73,406
67,030
10
%
69,995
5
%
212,576
212,199
—
%
Income before income taxes
39,744
36,524
9
%
57,158
(30
)
%
108,683
171,292
(37
)
%
Income tax provision
9,254
9,771
(5
)
%
14,566
(36
)
%
25,487
43,261
(41
)
%
Net income
$
30,490
$
26,753
14
%
$
42,592
(28
)
%
$
83,196
$
128,031
(35
)
%
Earnings Per Common Share:
Basic
$
0.25
$
0.22
$
0.34
$
0.67
$
1.01
Diluted
$
0.25
$
0.22
$
0.34
$
0.67
$
1.01
Weighted Average Shares Outstanding:
Basic
123,251,336
123,200,127
126,685,921
123,581,055
126,661,798
Diluted
123,536,765
123,430,891
127,007,469
123,895,084
126,895,970
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
For the Three Months Ended
(Annualized)
For the Nine Months Ended
(Annualized)
Profitability measures:
9/30/2020
6/30/2020
9/30/2019
9/30/2020
9/30/2019
ROA
0.72
%
0.64
%
1.12
%
0.68
%
1.12
%
ROE
5.98
%
5.31
%
8.47
%
5.47
%
8.69
%
ROTCE (1)
7.80
%
6.94
%
11.11
%
7.14
%
11.48
%
Net interest margin
2.91
%
2.79
%
3.25
%
2.99
%
3.31
%
Efficiency ratio
54.31
%
55.37
%
54.15
%
54.68
%
54.44
%
Noninterest expense / average assets
1.73
%
1.60
%
1.85
%
1.73
%
1.86
%
(1) Average tangible equity is calculated
by subtracting average goodwill and average core deposit intangible
assets from average stockholders’ equity. This is a non-GAAP
measure that we believe provides investors with information that is
useful in understanding our financial performance and position.
Three Months Ended
Nine Months Ended
Pre-tax acquisition accounting
adjustments and merger-related expenses:
9/30/2020
6/30/2020
9/30/2019
9/30/2020
9/30/2019
Accretion on purchased non-impaired
loans
$
747
$
658
$
2,046
$
2,464
$
6,011
Accretion on purchased credit
deteriorated/purchased credit impaired loans
4,584
3,046
5,234
17,079
17,916
Amortization of premium on low income
housing tax credits
(71)
(70)
(75)
(212)
(227)
Amortization of premium on acquired FHLB
borrowings
—
—
—
—
1,280
Accretion of discount on acquired
subordinated debt
(287)
(284)
(278)
(854)
(826)
Amortization of core deposit
intangibles
(531)
(532)
(557)
(1,594)
(1,671)
Total acquisition accounting
adjustments
$
4,442
$
2,818
$
6,370
$
16,883
$
22,483
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
Three Months Ended
9/30/2020
6/30/2020
9/30/2019
Interest
Annualized
Interest
Annualized
Interest
Annualized
Average
Income/
Average
Average
Income/
Average
Average
Income/
Average
Balance
Expense
Yield/Cost
Balance
Expense
Yield/Cost
Balance
Expense
Yield/Cost
INTEREST EARNING ASSETS:
Loans, including loans held for sale
$
12,728,558
$
134,430
4.20
%
$
12,755,088
$
134,190
4.23
%
$
11,911,658
$
158,115
5.27
%
Securities available for sale
2,010,907
9,848
1.95
%
1,750,156
9,891
2.27
%
1,798,239
11,373
2.51
%
FHLB stock and other investments
1,342,641
942
0.28
%
1,317,049
980
0.30
%
482,952
2,929
2.41
%
Total interest earning assets
$
16,082,106
$
145,220
3.59
%
$
15,822,293
$
145,061
3.69
%
$
14,192,849
$
172,417
4.82
%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing
$
4,895,101
$
6,546
0.53
%
$
4,903,786
$
7,563
0.62
%
$
3,450,749
$
15,802
1.82
%
Savings
302,882
907
1.19
%
284,050
862
1.22
%
252,780
675
1.06
%
Time deposits
4,703,640
15,418
1.30
%
4,954,446
21,026
1.71
%
5,368,753
32,580
2.41
%
Total interest bearing deposits
9,901,623
22,871
0.92
%
10,142,282
29,451
1.17
%
9,072,282
49,057
2.15
%
FHLB advances
353,587
1,323
1.49
%
593,407
2,238
1.52
%
632,500
3,112
1.95
%
Convertible notes, net
202,470
2,370
4.58
%
201,169
2,358
4.64
%
197,410
2,322
4.60
%
Subordinated debentures
99,819
1,019
3.99
%
99,534
1,200
4.77
%
98,690
1,668
6.61
%
Total interest bearing liabilities
$
10,557,499
$
27,583
1.04
%
$
11,036,392
$
35,247
1.28
%
$
10,000,882
$
56,159
2.23
%
Noninterest bearing demand deposits
4,239,108
3,510,783
2,958,233
Total funding liabilities/cost of
funds
$
14,796,607
0.74
%
$
14,547,175
0.97
%
$
12,959,115
1.72
%
Net interest income/net interest
spread
$
117,637
2.55
%
$
109,814
2.41
%
$
116,258
2.59
%
Net interest margin
2.91
%
2.79
%
3.25
%
Cost of deposits:
Noninterest bearing demand deposits
$
4,239,108
$
—
—
%
$
3,510,783
$
—
—
%
$
2,958,233
$
—
—
%
Interest bearing deposits
9,901,623
22,871
0.92
%
10,142,282
29,451
1.17
%
9,072,282
49,057
2.15
%
Total deposits
$
14,140,731
$
22,871
0.64
%
$
13,653,065
$
29,451
0.87
%
$
12,030,515
$
49,057
1.62
%
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
Nine Months Ended
9/30/2020
9/30/2019
Interest
Annualized
Interest
Annualized
Average
Income/
Average
Average
Income/
Average
Balance
Expense
Yield/Cost
Balance
Expense
Yield/Cost
INTEREST EARNING ASSETS:
Loans, including loans held for sale
$
12,581,703
$
422,850
4.49
%
$
11,985,936
$
474,878
5.30
%
Securities available for sale
1,825,046
30,348
2.22
%
1,810,068
35,558
2.63
%
FHLB stock and other investments
1,060,699
3,951
0.50
%
450,028
8,577
2.55
%
Total interest earning assets
$
15,467,448
$
457,149
3.95
%
$
14,246,032
$
519,013
4.87
%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing
$
4,668,594
$
28,988
0.83
%
$
3,197,313
$
42,807
1.79
%
Savings
287,060
2,578
1.20
%
234,203
1,848
1.05
%
Time deposits
4,852,286
61,869
1.70
%
5,694,778
100,075
2.35
%
Total interest bearing deposits
9,807,940
93,435
1.27
%
9,126,294
144,730
2.12
%
FHLB advances
513,376
6,208
1.62
%
715,814
9,110
1.70
%
Convertible notes, net
201,204
7,074
4.62
%
196,217
6,930
4.66
%
Subordinated debentures
99,536
3,690
4.87
%
98,410
5,156
6.91
%
Total interest bearing liabilities
$
10,622,056
$
110,407
1.39
%
$
10,136,735
$
165,926
2.19
%
Noninterest bearing demand deposits
3,573,448
2,931,080
Total funding liabilities/cost of
funds
$
14,195,504
1.04
%
$
13,067,815
1.70
%
Net interest income/net interest
spread
$
346,742
2.56
%
$
353,087
2.68
%
Net interest margin
2.99
%
3.31
%
Cost of deposits:
Noninterest bearing demand deposits
$
3,573,448
$
—
—
%
$
2,931,080
$
—
—
%
Interest bearing deposits
9,807,940
93,435
1.27
%
9,126,294
144,730
2.12
%
Total deposits
$
13,381,388
$
93,435
0.93
%
$
12,057,374
$
144,730
1.60
%
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
Three Months Ended
Nine Months Ended
AVERAGE BALANCES:
9/30/2020
6/30/2020
% change
9/30/2019
% change
9/30/2020
9/30/2019
% change
Loans receivable, including loans held for
sale
$
12,728,558
$
12,755,088
—
%
$
11,911,658
7
%
$
12,581,703
$
11,985,936
5
%
Investments
3,353,548
3,067,205
9
%
2,281,191
47
%
2,885,745
2,260,096
28
%
Interest earning assets
16,082,106
15,822,293
2
%
14,192,849
13
%
15,467,448
14,246,032
9
%
Total assets
17,020,795
16,759,147
2
%
15,154,661
12
%
16,411,150
15,209,668
8
%
Interest bearing deposits
9,901,623
10,142,282
(2)
%
9,072,282
9
%
9,807,940
9,126,294
7
%
Interest bearing liabilities
10,557,499
11,036,392
(4)
%
10,000,882
6
%
10,622,056
10,136,735
5
%
Noninterest bearing demand deposits
4,239,108
3,510,783
21
%
2,958,233
43
%
3,573,448
2,931,080
22
%
Stockholders’ equity
2,039,555
2,016,947
1
%
2,010,458
1
%
2,028,074
1,964,146
3
%
Net interest earning assets
5,524,607
4,785,901
15
%
4,191,967
32
%
4,845,392
4,109,297
18
%
LOAN PORTFOLIO COMPOSITION:
9/30/2020
6/30/2020
% change
12/31/2019
% change
9/30/2019
% change
Commercial loans
$
3,700,020
$
3,415,111
8
%
$
2,719,818
36
%
$
2,645,770
40
%
Real estate loans
8,713,536
8,686,939
—
%
8,666,901
1
%
8,586,989
1
%
Consumer and other loans
706,669
769,784
(8)
%
889,288
(21)
%
871,923
(19)
%
Loans, net of deferred loan fees and
costs
13,120,225
12,871,834
2
%
12,276,007
7
%
12,104,682
8
%
Allowance for credit losses
(179,849)
(161,771)
11
%
(94,144)
91
%
(93,882)
92
%
Loan receivable, net
$
12,940,376
$
12,710,063
2
%
$
12,181,863
6
%
$
12,010,800
8
%
REAL ESTATE LOANS BY PROPERTY
TYPE:
9/30/2020
6/30/2020
% change
12/31/2019
% change
9/30/2019
% change
Retail buildings
$
2,311,516
$
2,278,448
1
%
$
2,298,872
1
%
$
2,304,346
—
%
Hotels/motels
1,675,960
1,701,909
(2)
%
1,709,189
(2)
%
1,664,311
1
%
Gas stations/car washes
824,378
836,314
(1)
%
844,081
(2)
%
911,494
(10)
%
Mixed-use facilities
754,096
706,827
7
%
785,882
(4)
%
743,428
1
%
Warehouses
1,022,657
1,040,303
(2)
%
1,030,876
(1)
%
949,336
8
%
Multifamily
518,295
497,948
4
%
465,397
11
%
473,640
9
%
Other
1,606,634
1,625,190
(1)
%
1,532,604
5
%
1,540,434
4
%
Total
$
8,713,536
$
8,686,939
—
%
$
8,666,901
1
%
$
8,586,989
1
%
DEPOSIT COMPOSITION
9/30/2020
6/30/2020
% change
12/31/2019
% change
9/30/2019
% change
Noninterest bearing demand deposits
$
4,488,529
$
4,036,383
11
%
$
3,108,687
44
%
$
3,033,371
48
%
Money market and other
4,763,893
4,831,679
(1)
%
3,985,556
20
%
3,752,274
27
%
Saving deposits
308,943
296,614
4
%
274,151
13
%
259,454
19
%
Time deposits
4,446,991
4,958,856
(10)
%
5,158,970
(14)
%
5,189,651
(14)
%
Total deposit balances
$
14,008,356
$
14,123,532
(1)
%
$
12,527,364
12
%
$
12,234,750
14
%
DEPOSIT COMPOSITION (%)
9/30/2020
6/30/2020
12/31/2019
9/30/2019
Noninterest bearing demand deposits
32.1
%
28.6
%
24.8
%
24.8
%
Money market and other
34.0
%
34.2
%
31.8
%
30.7
%
Saving deposits
2.2
%
2.1
%
2.2
%
2.1
%
Time deposits
31.7
%
35.1
%
41.2
%
42.4
%
Total deposit balances
100.0
%
100.0
%
100.0
%
100.0
%
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
CAPITAL RATIOS:
9/30/2020
6/30/2020
12/31/2019
9/30/2019
Total stockholders’ equity
$
2,040,561
$
2,030,776
$
2,036,011
$
2,031,284
Common equity tier 1 ratio
11.36
%
11.50
%
11.76
%
11.89
%
Tier 1 risk-based capital ratio
12.09
%
12.24
%
12.51
%
12.65
%
Total risk-based capital ratio
13.19
%
13.23
%
13.23
%
13.38
%
Tier 1 leverage ratio
10.02
%
10.08
%
11.22
%
11.18
%
Total risk weighted assets
$
13,691,823
$
13,388,522
$
13,208,299
$
12,951,936
Book value per common share
$
16.55
$
16.48
$
16.19
$
16.03
Tangible common equity to tangible assets
1
9.63
%
9.32
%
10.27
%
10.43
%
Tangible common equity per share 1
$
12.70
$
12.62
$
12.40
$
12.27
1 Tangible common equity to tangible
assets is a non-GAAP financial measure that represents common
equity less goodwill and core deposit intangible assets, net
divided by total assets less goodwill and core deposit intangible
assets, net. Management reviews tangible common equity to tangible
assets in evaluating the Company’s capital levels and has included
this ratio in response to market participant interest in tangible
common equity as a measure of capital.
Three Months Ended
Nine Months Ended
ALLOWANCE FOR CREDIT LOSSES
CHANGES:
9/30/2020
6/30/2020
3/31/2020
12/31/2019
9/30/2019
9/30/2020
9/30/2019
Balance at beginning of period
$
161,771
$
144,923
$
94,144
$
93,882
$
94,066
$
94,144
$
92,557
CECL day 1 adoption impact
—
—
26,200
—
—
26,200
—
Provision for credit losses
22,000
17,500
28,000
1,000
2,100
67,500
6,300
Recoveries
2,428
252
2,536
939
780
5,216
2,797
Charge offs
(6,350)
(904)
(5,957)
(1,677)
(2,602)
(13,211)
(6,432)
PCI allowance adjustment
—
—
—
—
(462)
—
(1,340)
Balance at end of period
$
179,849
$
161,771
$
144,923
$
94,144
$
93,882
$
179,849
$
93,882
Net charge offs/average loans receivable
(annualized)
0.12
%
0.02
%
0.11
%
0.02
%
0.06
%
0.08
%
0.04
%
Three Months Ended
Nine Months Ended
NET LOAN CHARGE OFFS
(RECOVERIES):
9/30/2020
6/30/2020
3/31/2020
12/31/2019
9/30/2019
9/30/2020
9/30/2019
Real estate loans
$
5,154
$
148
$
2,230
$
203
$
951
$
7,532
$
(504)
Commercial loans
(1,451)
240
676
245
596
(535)
3,245
Consumer loans
219
264
515
290
275
998
894
Total net charge offs
$
3,922
$
652
$
3,421
$
738
$
1,822
$
7,995
$
3,635
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
NONPERFORMING ASSETS:
9/30/2020
6/30/2020
3/31/2020
12/31/2019
9/30/2019
Loans on nonaccrual status 3
$
69,205
$
82,137
$
72,639
$
54,785
$
42,235
Delinquent loans 90 days or more on
accrual status
1,537
430
387
7,547
398
Accruing troubled debt restructured
loans
35,429
44,026
43,789
35,709
34,717
Total nonperforming loans
106,171
126,593
116,815
98,041
77,350
Other real estate owned
18,410
20,983
23,039
24,091
19,374
Total nonperforming assets
$
124,581
$
147,576
$
139,854
$
122,132
$
96,724
Nonperforming assets/total assets
0.74
%
0.86
%
0.87
%
0.78
%
0.63
%
Nonperforming assets/loans receivable
& OREO
0.95
%
1.14
%
1.11
%
0.99
%
0.80
%
Nonperforming assets/total capital
6.11
%
7.27
%
6.93
%
6.00
%
4.76
%
Nonperforming loans/loans receivable
0.81
%
0.98
%
0.93
%
0.80
%
0.64
%
Nonaccrual loans/loans receivable
0.53
%
0.64
%
0.58
%
0.45
%
0.35
%
Allowance for credit losses/loans
receivable
1.37
%
1.26
%
1.15
%
0.77
%
0.78
%
Allowance for credit losses/nonaccrual
loans
259.88
%
196.95
%
199.51
%
171.84
%
222.28
%
Allowance for credit losses/nonperforming
loans
169.40
%
127.79
%
124.06
%
96.03
%
121.37
%
Allowance for credit losses/nonperforming
assets
144.36
%
109.62
%
103.62
%
77.08
%
97.06
%
3 Excludes delinquent SBA loans that are
guaranteed and currently in liquidation totaling $26.2 million,
$30.3 million, $28.8 million, $28.1 million, and $37.3 million at
September 30, 2020, June 30, 2020, March 31, 2020, December 31,
2019, and September 30, 2019, respectively.
NONACCRUAL LOANS BY TYPE:
9/30/2020
6/30/2020
3/31/2020
12/31/2019
9/30/2019
Real estate loans
$
51,739
$
64,060
$
56,787
$
40,935
$
27,920
Commercial loans
13,022
12,079
12,747
10,893
11,242
Consumer loans
4,444
5,998
3,105
2,957
3,073
Total nonaccrual loans
$
69,205
$
82,137
$
72,639
$
54,785
$
42,235
BREAKDOWN OF ACCRUING TROUBLED DEBT
RESTRUCTURED LOANS:
9/30/2020
6/30/2020
3/31/2020
12/31/2019
9/30/2019
Retail buildings
$
5,451
$
5,526
$
5,014
$
4,215
$
3,221
Gas stations/car washes
224
1,789
1,675
—
233
Mixed-use facilities
4,323
3,583
3,157
3,175
3,200
Warehouses
7,320
13,433
13,381
10,381
10,449
Other 5
18,111
19,695
20,562
17,938
17,614
Total
$
35,429
$
44,026
$
43,789
$
35,709
$
34,717
5 Includes commercial business, consumer,
and other loans
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
ACCRUING DELINQUENT LOANS 30-89 DAYS
PAST DUE:
9/30/2020
6/30/2020
3/31/2020
12/31/2019
9/30/2019
30 - 59 days
$
5,962
$
18,857
$
37,866
$
14,433
$
25,281
60 - 89 days
58,065
29,975
2,605
4,712
4,535
Total
$
64,027
$
48,832
$
40,471
$
19,145
$
29,816
ACCRUING DELINQUENT LOANS 30-89 DAYS
PAST DUE BY TYPE:
9/30/2020
6/30/2020
3/31/2020
12/31/2019
9/30/2019
Real estate loans
$
60,510
$
27,245
$
23,753
$
7,689
$
20,572
Commercial loans
624
5,987
4,583
692
2,282
Consumer loans
2,893
15,600
12,135
10,764
6,962
Total
$
64,027
$
48,832
$
40,471
$
19,145
$
29,816
CRITICIZED LOANS:
9/30/2020
6/30/2020
3/31/2020
12/31/2019
9/30/2019
Special mention
$
153,388
$
127,149
$
122,279
$
141,452
$
139,848
Substandard
311,902
299,357
278,771
259,278
268,605
Doubtful/Loss
6,640
11
12
13
17
Total criticized loans
$
471,930
$
426,517
$
401,062
$
400,743
$
408,470
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
Reconciliation of GAAP financial
measures to non-GAAP financial measures
Management reviews select non-GAAP
financial measures in evaluating the Company’s and the Bank’s
financial performance and in response to market participant
interest. A reconciliation of the GAAP to non-GAAP financial
measures utilized by management is provided below.
Three Months Ended
Nine Months Ended
9/30/2020
6/30/2020
9/30/2019
9/30/2020
9/30/2019
RETURN ON AVERAGE TANGIBLE COMMON
EQUITY
Average stockholders’ equity
$
2,039,555
$
2,016,947
$
2,010,458
$
2,028,074
$
1,964,146
Less: Goodwill and core deposit intangible
assets, net
(475,010)
(475,534)
(477,159)
(475,530)
(477,730)
Average tangible common equity
$
1,564,545
$
1,541,413
$
1,533,299
$
1,552,544
$
1,486,416
Net income
$
30,490
$
26,753
$
42,592
$
83,196
$
128,031
Return on average tangible common equity
(annualized)
7.80
%
6.94
%
11.11
%
7.14
%
11.48
%
Three Months Ended
9/30/2020
6/30/2020
12/31/2019
9/30/2019
TANGIBLE COMMON EQUITY
Total stockholders’ equity
$
2,040,561
$
2,030,776
$
2,036,011
$
2,031,284
Less: Goodwill and core deposit intangible
assets, net
(474,689)
(475,220)
(476,283)
(476,840)
Tangible common equity
$
1,565,872
$
1,555,556
$
1,559,728
$
1,554,444
Total assets
$
16,733,767
$
17,169,062
$
15,667,440
$
15,379,878
Less: Goodwill and core deposit intangible
assets, net
(474,689)
(475,220)
(476,283)
(476,840)
Tangible assets
$
16,259,078
$
16,693,842
$
15,191,157
$
14,903,038
Common shares outstanding
123,260,760
123,239,276
125,756,543
126,697,925
Tangible common equity to tangible
assets
9.63
%
9.32
%
10.27
%
10.43
%
Tangible common equity per share
$
12.70
$
12.62
$
12.40
$
12.27
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
Three Months Ended
Nine Months Ended
9/30/2020
6/30/2020
9/30/2019
9/30/2020
9/30/2019
PRE-TAX PRE-PROVISION INCOME
Net income
$
30,490
$
26,753
$
42,592
$
83,196
$
128,031
Add back - tax provision
9,254
9,771
14,566
25,487
43,261
Add back - provision for credit losses
22,000
17,500
2,100
67,500
6,300
Pre-tax pre-provision income
$
61,744
$
54,024
$
59,258
$
176,183
$
177,592
Three Months Ended
Nine Months Ended
9/30/2020
6/30/2020
9/30/2019
9/30/2020
9/30/2019
PRE-PROVISION NET REVENUE
Net interest income before provision for
credit losses
$
117,637
$
109,814
$
116,258
$
346,742
$
353,087
Noninterest income
17,513
11,240
12,995
42,017
36,704
Pre-Provision Net Revenue
$
135,150
$
121,054
$
129,253
$
388,759
$
389,791
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201020006223/en/
Alex Ko EVP & Chief Financial Officer 213-427-6560
alex.ko@bankofhope.com
Angie Yang SVP, Director of Investor Relations & Corporate
Communications 213-251-2219 angie.yang@bankofhope.com
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