Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding
company of Bank of Hope (the “Bank”), today reported unaudited
financial results for the three and nine-month periods ended
September 30, 2019. Net income for the 2019 third quarter totaled
$42.6 million, or $0.34 per diluted common share. This compares
with net income for the preceding 2019 second quarter of $42.7
million, or $0.34 per diluted common share and $46.4 million, or
$0.36 per diluted common share, for the 2018 third quarter.
“We are pleased to deliver solid third quarter financial
results, which reflect a continuation of the many positive trends
from the preceding second quarter,” said Kevin S. Kim, Chairman,
President and Chief Executive Officer of Hope Bancorp, Inc.
“Benefiting from our deposit strategies, we continued to see a
favorable mix-shift to growth in core deposits, along with
decreases in the higher-rate time deposits. This resulted in what
we expect to be the peak in deposit costs in the current rate
cycle, and total cost of deposits for the period was stable
quarter-over-quarter. Driven by stronger volumes of both CRE and
C&I lending, we also had our strongest quarter year-to-date in
new loan originations, which resulted in a 1% increase in loans
receivable from June 30, 2019. Topping off these highlights, our
proactive efforts led to another quarter of considerable
improvements in our credit metrics with a 35% reduction in
nonaccrual loans and a 20% decrease in total criticized assets.
“Overall, our third quarter performance underscores the progress
we are making with our strategic initiatives. Given our ongoing
success with expense controls and a robust loan pipeline entering
the fourth quarter, we expect another strong performance to close
out a solid year for Bank of Hope,” said Kim.
Q3 2019 Highlights
- 2019 third quarter net income totaled $42.6 million, or $0.34
per diluted common share.
- 1% growth in total deposits quarter-over-quarter reflects a
favorable shift to core deposits, with increases in noninterest
bearing demand deposits, savings and money market balances,
partially offset by decreases in higher-cost time deposits.
- Deposit initiatives contributed to a stabilization of total
deposit costs, which remained flat quarter-over-quarter.
- New loan origination volumes were the highest year-to-date at
$693.9 million and included a well-balanced mix of 50% commercial
real estate, 41% commercial and 9% consumer loans, driving a 1%
increase in loans receivable quarter-over-quarter.
- Continuation of asset quality improvements across the board,
most notably a 35% reduction in nonaccrual loans and 20% decrease
in criticized loan balances.
- Total noninterest expenses down 2% quarter-over-quarter and
improved as a percentage of average assets to 1.85%.
Financial Highlights
(dollars in thousands, except per share
data) (unaudited)
At or for the Three Months
Ended
9/30/2019
6/30/2019
9/30/2018
Net income
$
42,592
$
42,681
$
46,378
Diluted earnings per share
$
0.34
$
0.34
$
0.36
Net interest income before provision for
loan losses
$
116,258
$
117,221
$
123,147
Net interest margin
3.25
%
3.31
%
3.47
%
Noninterest income
$
12,995
$
12,287
$
13,447
Noninterest expense
$
69,995
$
71,371
$
67,455
Net loans receivable
$
12,010,800
$
11,883,068
$
11,836,553
Deposits
$
12,234,750
$
12,172,384
$
12,045,619
Nonaccrual loans (1) (2)
$
42,235
$
64,934
$
56,299
Nonperforming loans to loans receivable
(1) (2)
0.64
%
0.89
%
0.92
%
ALLL to loans receivable
0.78
%
0.79
%
0.76
%
ALLL to nonaccrual loans (1) (2)
222.28
%
144.86
%
160.98
%
ALLL to nonperforming assets (1) (2)
97.06
%
84.24
%
76.67
%
Provision for loan losses
$
2,100
$
1,200
$
7,300
Net charge offs
$
1,822
$
1,351
$
6,552
Return on average assets (“ROA”)
1.12
%
1.12
%
1.24
%
Return on average equity (“ROE”)
8.47
%
8.71
%
9.76
%
Return on average common tangible equity
(“ROTCE”) (3)
11.11
%
11.51
%
13.06
%
Noninterest expense / average assets
1.85
%
1.88
%
1.80
%
Efficiency ratio
54.15
%
55.11
%
49.38
%
(1)
Excludes delinquent SBA loans that are
guaranteed and currently in liquidation
(2)
Excludes purchased credit-impaired
loans
(3)
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 7.
Operating Results for the 2019 Third
Quarter
Net Interest Income. Net interest income before provision
for loan losses for the 2019 third quarter totaled $116.3 million,
compared with $117.2 million in the 2019 second quarter and $123.1
million in the year-ago third quarter.
The net interest margin (net interest income divided by average
interest earning assets) for the 2019 third quarter declined 6
basis points to 3.25% from 3.31% in the 2019 second quarter,
reflecting lower weighted average yield on loans, due to the
decreases in the fed funds rate on July 31 and September 18, 2019,
and stable deposit costs. In addition, a $1.4 million reduction in
accretion income on purchased loans reduced net interest margin by
4 basis points. The net interest margin in the prior-year third
quarter was 3.47%.
The weighted average yield on loans for the 2019 third quarter
was 5.27%, down 5 basis points from 5.32% in the preceding second
quarter, but was up 11 basis points from 5.16% in the year-ago
third quarter.
The Company continued to see benefits from its deposit
initiatives, and the weighted average cost of deposits for the 2019
third quarter was flat with the preceding second quarter at 1.62%.
In the 2018 third quarter, the weighted average cost of deposits
was 1.24%.
Noninterest Income. Noninterest income for the 2019 third
quarter increased to $13.0 million from $12.3 million in the 2019
second quarter. Management’s proactive interest rate mitigation
efforts and expansion of the interest rate swap program drove
higher swap fee income for the quarter versus the preceding second
quarter. In addition, service fees on deposit accounts rose 6% in
line with the higher core deposit balances. These increases were
partially offset by lower gains on sales of residential mortgage
loans of $804,000 in the 2019 third quarter, versus $1.1 million in
the preceding second quarter, which included a bulk sale of the
Company’s existing portfolio. In the 2018 third quarter,
noninterest income totaled $13.4 million and included a $2.3
million gain on sales of SBA loans to the secondary market. Since
the middle of the 2018 fourth quarter, the Company has discontinued
its practice of regularly selling SBA loans to the secondary
market.
Noninterest Expense. Noninterest expense for the 2019
third quarter declined to $70.0 million, compared with $71.4
million in the preceding second quarter. The reduction reflects a
full quarter’s costs saves from the Company’s branch
rationalization plan completed at the end of the preceding second
quarter, lower professional fees and an FDIC assessment credit.
These reductions were offset by higher compensation costs in the
2019 third quarter. In the 2018 third quarter, noninterest expense
totaled $67.5 million. Noninterest expense as a percentage of
average assets amounted to 1.85%, 1.88% and 1.80% for the 2019
third quarter, 2019 second quarter and 2018 third quarter,
respectively.
Salaries and employee benefits expense increased to $41.6
million for the 2019 third quarter from $39.3 million for the 2019
second quarter, largely reflecting a $1.4 million
quarter-over-quarter increase in self-funded group insurance costs,
which fluctuates based on the volume of insurance claims in a given
quarter. In the 2018 third quarter, salaries and employee benefits
expense totaled $37.0 million.
Income Tax Provision. The effective tax rate for the 2019
third quarter was 25.5%, compared with 25.0% in the preceding 2019
second quarter and 25.0% in the 2018 third quarter.
Balance Sheet Summary
Loans receivable at September 30, 2019 increased 1% to $12.10
billion from $11.98 billion at June 30, 2019 and was stable
compared with $12.10 billion at December 31, 2018.
New loan originations funded during the 2019 third quarter
totaled $693.9 million and included SBA loan production of $53.8
million and residential mortgage loan originations of $58.5
million. This compares with 2019 second quarter originations of
$503.9 million, including SBA loan production of $37.2 million and
residential mortgage loan originations of $74.0 million. The
Company attributed the quarter-over-quarter increase in new loan
production to stronger volumes of C&I lending during the 2019
third quarter. In the year-ago third quarter, new loan originations
funded totaled $784.1 million, including SBA loan production of
$71.4 million and residential mortgage loan originations of $165.6
million.
SBA 7(a) loan originations totaled $34.4 million for the 2019
third quarter, compared with $37.2 million for the second quarter
of 2019 and $52.5 million for the year-ago third quarter. In
accordance with the Company’s decision to retain SBA 7(a) loans in
its portfolio effective mid-fourth quarter of 2018, there were no
sales to the secondary market during the 2019 third or second
quarter. In contrast, the Company sold $48.5 million of its SBA
7(a) loans during the 2018 third quarter.
Total sales of mortgage loans amounted to $30.9 million in the
2019 third quarter, compared with $76.2 million in the 2019 second
quarter and $45.8 million in the 2018 third quarter. The Company
noted that sales of residential mortgage loans for the preceding
second quarter included a bulk sale of $44.5 million from the
Company’s existing portfolio.
Aggregate loan payoffs and pay downs in the 2019 third quarter
remained at higher-than-usual levels at $632.7 million, compared
with $598.5 million in the preceding second quarter due to higher
payoff volumes. In the 2018 third quarter, aggregate loan payoffs
and pay downs totaled $495.3 million. The Company attributed the
higher payoff volumes in the 2019 quarters to the competitive
business environment, as well as proactive identification and
management of potentially problematic credits. Included in the
payoff activity of the 2019 third quarter was $36.0 of loans that
the Company had reported as criticized and $14.4 million of loans
reported as nonaccrual as of June 30, 2019.
Total deposits at September 30, 2019 grew 1% to $12.23 billion
from $12.17 billion at June 30, 2019 and increased 2% from $12.05
billion at September 30, 2018. Benefiting from the Company’s
deposit initiatives, the increases predominantly reflect a
favorable shift in the mix of deposits with higher money market
account balances and decreases in higher-cost time deposits.
Noninterest bearing demand deposits increased 1%
quarter-over-quarter and accounted for 25% of total deposits at
September 30, 2019. Money market and other deposits increased 16%
quarter-over-quarter and rose as a percentage of total deposits to
31% at September 30, 2019 from 27% at June 30, 2019.
The favorable mix-shift contributed to a stabilization of
deposit costs, and the total cost of deposits was 1.62% for the
2019 third quarter and the preceding second quarter, versus 1.24%
for the year-ago third quarter.
Credit Quality
Benefiting from proactive identification and management efforts,
the Company reported a second consecutive quarter of considerable
improvements in asset quality metrics.
The provision for loan and lease losses for the 2019 third
quarter was $2.1 million, compared with $1.2 million for the
preceding 2019 second quarter and $7.3 million for the year-ago
third quarter.
The Company defines nonperforming loans to include loans on
nonaccrual status, delinquent loans past due 90 days or more on
accrual status (excluding purchased credit-impaired loans) and
accruing restructured loans.
Nonaccrual loans at September 30, 2019 declined by 35% to $42.2
million from $64.9 million at June 30, 2019 and by 25% from $56.3
million at September 30, 2018. Nonaccrual loans as a percentage of
loans receivable improved to 0.35% at September 30, 2019 from 0.54%
at June 30, 2019 and 0.47% at September 30, 2018.
Accruing delinquent loans totaled $398,000 at September 30,
2019, compared with $353,000 at June 30, 2019 and $401,000 at
September 30, 2018. Accruing restructured loans at September 30,
2019 decreased 15% to $34.7 million from $40.7 million at June 30,
2019 and decreased 34% from $52.5 million at September 30, 2018.
Total nonperforming loans decreased 27% to $77.4 million at
September 30, 2019 from $106.0 million at June 30, 2019 and
decreased 29% from $109.2 million at September 30, 2018. Total
nonperforming loans as a percentage of loans receivable improved to
0.64% at September 30, 2019 from 0.89% at June 30, 2019 and 0.92%
at September 30, 2018.
Other real estate owned increased to $19.4 million at September
30, 2019 from $5.6 million at June 30, 2019 and $9.0 million at
September 30, 2018. The Company attributed the increase to
proactive efforts to workout problem credits.
Following are the components of criticized loan balances as of
September 30, 2019, June 30, 2019, and September 30, 2018:
(dollars in thousands) (unaudited)
9/30/2019
6/30/2019
9/30/2018
Special Mention (1)
$
139,848
$
186,485
$
215,586
Classified (1)
268,622
323,842
302,719
Criticized
$
408,470
$
510,327
$
518,305
(1)
Balances include purchased loans which
were marked to fair value on the date of acquisition.
The Company noted that, as part of management’s proactive
strategies, $26.0 million of substandard loans, after charge offs
of $599,000, were transferred to loans held for sale during the
2019 third quarter.
In aggregate, the Company recorded net charge offs of $1.8
million during the 2019 third quarter, or 0.06% of average loans
receivable on an annualized basis. This compares with net charge
offs of $1.4 million, or 0.05% of average loans receivable on an
annualized basis, for the 2019 second quarter. In the 2018 third
quarter, the Company recorded net charge offs of $6.5 million, or
0.22% of average loans receivable on an annualized basis.
The allowance for loan and lease losses (“ALLL”) was $93.9
million, $94.1 million and $90.6 million at September 30, 2019,
June 30, 2019 and September 30, 2018, respectively. As a percentage
of loans receivable (excluding loans held for sale), the ALLL was
0.78%, 0.79% and 0.76% at September 30, 2019, June 30, 2019 and
September 30, 2018, respectively. The coverage ratio of the ALLL to
nonperforming loans (excluding purchased credit-impaired loans) was
121.37% at September 30, 2019, 88.73% at June 30, 2019 and 82.98%
at September 30, 2018.
Impaired loans (defined as loans for which it is probable that
not all principal and interest payments due will be collected in
accordance with the contractual terms) decreased to $77.3 million
at September 30, 2019 from $106.0 million at June 30, 2019 and
$109.2 million at September 30, 2018.
Capital
At September 30, 2019, the Company and the Bank continued to
exceed all regulatory capital requirements to be classified as a
“well-capitalized” financial institution, as summarized in the
following table:
(unaudited)
9/30/2019
6/30/2019
9/30/2018
Minimum Guideline for
“Well-Capitalized” Bank
Common Equity Tier 1 Capital
11.89%
11.90%
11.61%
6.50%
Tier 1 Leverage Ratio
11.18%
10.94%
10.80%
5.00%
Tier 1 Risk-Based Ratio
12.65%
12.67%
12.38%
8.00%
Total Risk-Based Ratio
13.38%
13.42%
13.10%
10.00%
Tangible common equity per share and as a percentage of tangible
assets are summarized in the following table:
(unaudited)
9/30/2019
6/30/2019
9/30/2018
Tangible common equity per share (1)
$12.27
$11.98
$10.96
Tangible common equity to tangible assets
(2)
10.43%
10.21%
9.66%
(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 7.
(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 7.
Management reviews tangible common equity to tangible assets
ratio in evaluating the Company’s and the Bank’s capital levels and
has included these figures and tangible common equity per share
figures in response to market participant interest in tangible
common equity as a measure of capital. A reconciliation of the GAAP
to non-GAAP financial measures is provided in the accompanying
financial information.
Stock Repurchase Plan
On July 16, 2019, the Company announced a new $50 million stock
repurchase program. During the 2019 third quarter, there were no
stock repurchases, and the full amount of the plan remained
available at September 30, 2019.
Investor Conference Call
The Company previously announced that it will host an investor
conference call on Tuesday, October 22, 2019 at 9:30 a.m. Pacific
Time / 12:30 p.m. Eastern Time to review financial results for its
third quarter ended September 30, 2019. 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 29, 2019, replay access code 10135311.
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 $15.4 billion in total assets as of September 30, 2019.
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, Georgia 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; and regulatory risks associated with
current and future regulations. 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 data)
Assets:
9/30/2019
6/30/2019
% change
12/31/2018
% change
9/30/2018
% change
Cash and due from banks
$
549,356
$
609,795
(10
)%
$
459,606
20
%
$
522,710
5
%
Securities available for sale, at fair
value
1,772,322
1,826,903
(3
)%
1,846,265
(4
)%
1,854,250
(4
)%
Federal Home Loan Bank (“FHLB”) stock and
other investments
98,848
100,962
(2
)%
104,705
(6
)%
106,243
(7
)%
Loans held for sale, at the lower of cost
or fair value
29,627
6,426
361
%
25,128
18
%
15,023
97
%
Loans receivable
12,104,682
11,977,134
1
%
12,098,115
—
%
11,927,182
1
%
Allowance for loan losses
(93,882
)
(94,066
)
—
%
(92,557
)
(1
)%
(90,629
)
(4
)%
Net loans receivable
12,010,800
11,883,068
1
%
12,005,558
—
%
11,836,553
1
%
Accrued interest receivable
29,743
33,980
(12
)%
32,225
(8
)%
33,338
(11
)%
Premises and equipment, net
52,604
52,552
—
%
53,794
(2
)%
55,178
(5
)%
Bank owned life insurance
75,968
75,963
—
%
75,219
1
%
76,081
—
%
Goodwill
464,450
464,450
—
%
464,450
—
%
464,450
—
%
Servicing assets
17,865
19,997
(11
)%
23,132
(23
)%
24,354
(27
)%
Other intangible assets, net
12,390
12,947
(4
)%
14,061
(12
)%
14,677
(16
)%
Other assets
265,905
251,784
6
%
201,809
32
%
226,638
17
%
Total assets
$
15,379,878
$
15,338,827
—
%
$
15,305,952
—
%
$
15,229,495
1
%
Liabilities:
Deposits
$
12,234,750
$
12,172,384
1
%
$
12,155,656
1
%
$
12,045,619
2
%
FHLB advances
625,000
695,000
(10
)%
821,280
(24
)%
836,637
(25
)%
Convertible notes, net
198,211
196,977
1
%
194,543
2
%
193,332
3
%
Subordinated debentures
102,755
102,477
—
%
101,929
1
%
101,657
1
%
Accrued interest payable
38,197
36,987
3
%
31,374
22
%
31,717
20
%
Other liabilities
149,681
139,830
7
%
97,959
53
%
115,953
29
%
Total liabilities
$
13,348,594
$
13,343,655
—
%
13,402,741
—
%
$
13,324,915
—
%
Stockholders’ Equity:
Common stock, $0.001 par value
$
136
$
136
—
%
$
136
—
%
$
136
—
%
Capital surplus
1,426,666
1,425,262
—
%
1,423,405
—
%
1,422,685
—
%
Retained earnings
737,209
712,351
3
%
662,375
11
%
636,080
16
%
Treasury stock, at cost
(150,000
)
(150,000
)
—
%
(150,000
)
—
%
(100,000
)
(50
)%
Accumulated other comprehensive gain
(loss), net
17,273
7,423
133
%
(32,705
)
N/A
(54,321
)
N/A
Total stockholders’ equity
2,031,284
1,995,172
2
%
1,903,211
7
%
1,904,580
7
%
Total liabilities and stockholders’
equity
$
15,379,878
$
15,338,827
—
%
$
15,305,952
—
%
$
15,229,495
1
%
Common stock shares - authorized
150,000,000
150,000,000
150,000,000
150,000,000
Common stock shares - outstanding
126,697,925
126,673,822
126,639,912
130,074,103
Treasury stock shares
9,002,453
9,002,453
9,002,453
5,565,696
Table Page 1
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
Three Months Ended
Nine Months Ended
9/30/2019
6/30/2019
% change
9/30/2018
% change
9/30/2019
9/30/2018
% change
Interest income:
Interest and fees on loans
$
158,115
$
158,627
—
%
$
153,366
3
%
$
474,878
$
437,497
9
%
Interest on securities
11,373
11,866
(4
)%
11,957
(5
)%
35,558
32,957
8
%
Interest on federal funds sold and other
investments
2,929
2,973
(1
)%
2,503
17
%
8,577
7,692
12
%
Total interest income
172,417
173,466
(1
)%
167,826
3
%
519,013
478,146
9
%
Interest expense:
Interest on deposits
49,057
48,826
—
%
37,022
33
%
144,730
92,481
56
%
Interest on other borrowings and
convertible notes
7,102
7,419
(4
)%
7,657
(7
)%
21,196
19,631
8
%
Total interest expense
56,159
56,245
—
%
44,679
26
%
165,926
112,112
48
%
Net interest income before provision for
loan losses
116,258
117,221
(1
)%
123,147
(6
)%
353,087
366,034
(4
)%
Provision for loan losses
2,100
1,200
75
%
7,300
(71
)%
6,300
12,100
(48
)%
Net interest income after provision for
loan losses
114,158
116,021
(2
)%
115,847
(1
)%
346,787
353,934
(2
)%
Noninterest income:
Service fees on deposit accounts
4,690
4,416
6
%
4,569
3
%
13,423
13,983
(4
)%
Net gains on sales of SBA loans
—
—
—
%
2,331
(100
)%
—
9,261
(100
)%
Net gains on sales of other loans
804
1,066
(25
)%
477
69
%
2,611
2,104
24
%
Net gains on sales of securities available
for sale
153
129
19
%
—
100
%
282
—
100
%
Other income and fees
7,348
6,676
10
%
6,070
21
%
20,388
23,218
(12
)%
Total noninterest income
12,995
12,287
6
%
13,447
(3
)%
36,704
48,566
(24
)%
Noninterest expense:
Salaries and employee benefits
41,607
39,297
6
%
36,969
13
%
121,333
116,929
4
%
Occupancy
7,703
7,839
(2
)%
7,837
(2
)%
23,219
22,494
3
%
Furniture and equipment
3,851
4,026
(4
)%
3,710
4
%
11,323
11,454
(1
)%
Advertising and marketing
2,377
2,245
6
%
1,986
20
%
6,684
7,022
(5
)%
Data processing and communications
2,821
2,587
9
%
3,513
(20
)%
8,364
10,582
(21
)%
Professional fees
5,241
5,959
(12
)%
3,950
33
%
16,580
11,530
44
%
FDIC assessment
—
1,559
(100
)%
1,788
(100
)%
3,110
5,166
(40
)%
Credit related expenses
1,031
1,549
(33
)%
658
57
%
3,258
2,356
38
%
OREO (income) expense, net
(743
)
83
N/A
(56
)
1,227
%
(812
)
(115
)
606
%
Other
6,107
6,227
(2
)%
7,100
(14
)%
19,140
20,119
(5
)%
Total noninterest expense
69,995
71,371
(2
)%
67,455
4
%
212,199
207,537
2
%
Income before income taxes
57,158
56,937
—
%
61,839
(8
)%
171,292
194,963
(12
)%
Income tax provision
14,566
14,256
2
%
15,461
(6
)%
43,261
49,823
(13
)%
Net income
$
42,592
$
42,681
—
%
$
46,378
(8
)%
$
128,031
$
145,140
(12
)%
Earnings Per Common Share:
Basic
$
0.34
$
0.34
$
0.36
$
1.01
$
1.09
Diluted
$
0.34
$
0.34
$
0.36
$
1.01
$
1.09
Average Shares Outstanding:
Basic
126,685,921
126,658,509
130,268,992
126,661,798
132,930,437
Diluted
127,007,469
126,870,455
130,525,474
126,895,970
133,214,069
Table Page 2
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
For the Three Months
Ended
(Annualized)
For the Nine Months
Ended
(Annualized)
Profitability measures:
9/30/2019
6/30/2019
9/30/2018
9/30/2019
9/30/2018
ROA
1.12
%
1.12
%
1.24
%
1.12
%
1.32
%
ROE
8.47
%
8.71
%
9.76
%
8.69
%
10.09
%
ROTCE 1
11.11
%
11.51
%
13.06
%
11.48
%
13.46
%
Net interest margin
3.25
%
3.31
%
3.47
%
3.31
%
3.58
%
Efficiency ratio
54.15
%
55.11
%
49.38
%
54.44
%
50.06
%
Noninterest expense / average assets
1.85
%
1.88
%
1.80
%
1.86
%
1.89
%
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:
9/30/2019
6/30/2019
9/30/2018
9/30/2019
9/30/2018
Accretion on purchased non-impaired
loans
$
2,046
$
1,799
$
2,969
$
6,011
$
9,355
Accretion on purchased credit-impaired
loans
5,234
6,848
5,239
17,916
16,970
Amortization of premium on low income
housing tax credits
(75
)
(76
)
(84
)
(227
)
(253
)
Amortization of premium on acquired FHLB
borrowings
—
—
357
1,280
1,056
Accretion of discount on acquired
subordinated debt
(278
)
(275
)
(271
)
(826
)
(804
)
Amortization of premium on acquired time
deposits and savings
—
—
—
—
1
Amortization of core deposit
intangibles
(557
)
(557
)
(615
)
(1,671
)
(1,846
)
Total acquisition accounting
adjustments
6,370
7,739
7,595
22,483
24,479
Merger-related expenses
—
—
—
—
7
Total
$
6,370
$
7,739
$
7,595
$
22,483
$
24,486
Table Page 3
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
Three Months Ended
9/30/2019
6/30/2019
9/30/2018
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
$
11,911,658
$
158,115
5.27
%
$
11,959,920
$
158,627
5.32
%
$
11,781,091
$
153,366
5.16
%
Securities available for sale
1,798,239
11,373
2.51
%
1,804,677
11,866
2.64
%
1,844,493
11,957
2.57
%
FHLB stock and other investments
482,952
2,929
2.41
%
460,623
2,973
2.59
%
446,390
2,503
2.22
%
Total interest earning assets
$
14,192,849
$
172,417
4.82
%
$
14,225,220
$
173,466
4.89
%
$
14,071,974
$
167,826
4.73
%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing
$
3,450,749
$
15,802
1.82
%
$
3,094,179
$
14,019
1.82
%
$
3,237,673
$
11,526
1.41
%
Savings
252,780
675
1.06
%
225,978
608
1.08
%
228,218
486
0.84
%
Time deposits
5,368,753
32,580
2.41
%
5,784,980
34,199
2.37
%
5,344,464
25,010
1.86
%
Total interest bearing deposits
9,072,282
49,057
2.15
%
9,105,137
48,826
2.15
%
8,810,355
37,022
1.67
%
FHLB advances
632,500
3,112
1.95
%
706,044
3,384
1.92
%
837,412
3,703
1.75
%
Convertible debt
197,410
2,322
4.60
%
196,244
2,310
4.66
%
192,541
2,299
4.67
%
Subordinated debentures
98,690
1,668
6.61
%
98,406
1,725
6.93
%
97,589
1,655
6.64
%
Total interest bearing liabilities
$
10,000,882
$
56,159
2.23
%
$
10,105,831
$
56,245
2.23
%
$
9,937,897
$
44,679
1.78
%
Noninterest bearing demand deposits
2,958,233
2,947,476
3,041,489
Total funding liabilities/cost of
funds
$
12,959,115
1.72
%
$
13,053,307
1.73
%
$
12,979,386
1.37
%
Net interest income/net interest
spread
$
116,258
2.59
%
$
117,221
2.66
%
$
123,147
2.95
%
Net interest margin
3.25
%
3.31
%
3.47
%
Cost of deposits:
Noninterest bearing demand deposits
$
2,958,233
$
—
—
%
$
2,947,476
$
—
—
%
$
3,041,489
$
—
—
%
Interest bearing deposits
9,072,282
49,057
2.15
%
9,105,137
48,826
2.15
%
8,810,355
37,022
1.67
%
Total deposits
$
12,030,515
$
49,057
1.62
%
$
12,052,613
$
48,826
1.62
%
$
11,851,844
$
37,022
1.24
%
Table Page 4
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
Nine Months Ended
9/30/2019
9/30/2018
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
$
11,985,936
$
474,878
5.30
%
$
11,416,238
$
437,497
5.12
%
Securities available for sale
1,810,068
35,558
2.63
%
1,750,802
32,957
2.52
%
FHLB stock and other investments
450,028
8,577
2.55
%
506,802
7,692
2.03
%
Total interest earning assets
$
14,246,032
$
519,013
4.87
%
$
13,673,842
$
478,146
4.68
%
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing
$
3,197,313
$
42,807
1.79
%
$
3,327,101
$
30,828
1.24
%
Savings
234,203
1,848
1.05
%
230,909
1,352
0.78
%
Time deposits
5,694,778
100,075
2.35
%
4,932,912
60,301
1.63
%
Total interest bearing deposits
9,126,294
144,730
2.12
%
8,490,922
92,481
1.46
%
FHLB advances
715,814
$
9,110
1.70
%
885,332
11,453
1.73
%
Convertible debt
196,217
6,930
4.66
%
99,212
3,498
4.65
%
Subordinated debentures
98,410
5,156
6.91
%
97,320
4,680
6.34
%
Total interest bearing liabilities
$
10,136,735
$
165,926
2.19
%
$
9,572,786
$
112,112
1.57
%
Noninterest bearing demand deposits
2,931,080
3,012,501
Total funding liabilities/cost of
funds
$
13,067,815
1.70
%
$
12,585,287
1.19
%
Net interest income/net interest
spread
$
353,087
2.68
%
$
366,034
3.11
%
Net interest margin
3.31
%
3.58
%
Cost of deposits:
Noninterest bearing demand deposits
$
2,931,080
$
—
—
%
$
3,012,501
$
—
—
%
Interest bearing deposits
9,126,294
144,730
2.12
%
8,490,922
92,481
1.46
%
Total deposits
$
12,057,374
$
144,730
1.60
%
$
11,503,423
$
92,481
1.07
%
Table Page 5
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
Three Months Ended
Nine Months Ended
AVERAGE BALANCES:
9/30/2019
6/30/2019
% change
9/30/2018
% change
9/30/2019
9/30/2018
% change
Loans receivable, including loans held for
sale
$
11,911,658
$
11,959,920
—
%
$
11,781,091
1
%
$
11,985,936
$
11,416,238
5
%
Investments
2,281,191
2,265,300
1
%
2,290,883
—
%
2,260,096
2,257,604
—
%
Interest earning assets
14,192,849
14,225,220
—
%
14,071,974
1
%
14,246,032
13,673,842
4
%
Total assets
15,154,661
15,185,495
—
%
15,019,224
1
%
15,209,668
14,613,094
4
%
Interest bearing deposits
9,072,282
9,105,137
—
%
8,810,355
3
%
9,126,294
8,490,922
7
%
Interest bearing liabilities
10,000,882
10,105,831
(1
)%
9,937,897
1
%
10,136,735
9,572,786
6
%
Noninterest bearing demand deposits
2,958,233
2,947,476
—
%
3,041,489
(3
)%
2,931,080
3,012,501
(3
)%
Stockholders’ equity
2,010,458
1,960,500
3
%
1,899,853
6
%
1,964,146
1,917,696
2
%
Net interest earning assets
4,191,967
4,119,389
2
%
4,134,077
1
%
4,109,297
4,101,056
—
%
LOAN PORTFOLIO COMPOSITION:
9/30/2019
6/30/2019
% change
12/31/2018
% change
9/30/2018
% change
Commercial loans
$
2,643,836
$
2,432,068
9
%
$
2,324,820
14
%
$
2,318,213
14
%
Real estate loans
8,587,943
8,630,852
—
%
8,721,600
(2
)%
8,639,857
(1
)%
Consumer and other loans
870,734
913,087
(5
)%
1,051,486
(17
)%
969,835
(10
)%
Loans outstanding
12,102,513
11,976,007
1
%
12,097,906
—
%
11,927,905
1
%
Unamortized deferred loan costs (fees),
net
2,169
1,127
92
%
209
938
%
(723
)
N/A
Loans, net of deferred loan fees and
costs
12,104,682
11,977,134
1
%
12,098,115
—
%
11,927,182
1
%
Allowance for loan losses
(93,882
)
(94,066
)
—
%
(92,557
)
1
%
(90,629
)
4
%
Loan receivable, net
$
12,010,800
$
11,883,068
1
%
$
12,005,558
—
%
$
11,836,553
1
%
REAL ESTATE LOANS BY PROPERTY
TYPE:
9/30/2019
6/30/2019
% change
12/31/2018
% change
9/30/2018
% change
Retail buildings
$
2,304,346
$
2,295,569
—
%
$
2,379,589
(3
)%
$
2,388,343
(4
)%
Hotels/motels
1,664,311
1,670,758
—
%
1,694,696
(2
)%
1,663,543
—
%
Gas stations/car washes
911,494
953,977
(4
)%
980,619
(7
)%
964,019
(5
)%
Mixed-use facilities
743,428
739,467
1
%
698,779
6
%
694,961
7
%
Warehouses
949,336
936,934
1
%
966,413
(2
)%
927,767
2
%
Multifamily
473,640
460,572
3
%
453,555
4
%
457,282
4
%
Other
1,541,388
1,573,575
(2
)%
1,547,949
—
%
1,543,942
—
%
Total
$
8,587,943
$
8,630,852
—
%
$
8,721,600
(2
)%
$
8,639,857
(1
)%
DEPOSIT COMPOSITION
9/30/2019
6/30/2019
% change
12/31/2018
% change
9/30/2018
% change
Noninterest bearing demand deposits
$
3,033,371
$
3,009,218
1
%
$
3,022,633
—
%
$
3,020,819
—
%
Money market and other
3,752,274
3,238,947
16
%
3,036,653
24
%
3,247,420
16
%
Saving deposits
259,454
243,859
6
%
225,746
15
%
229,081
13
%
Time deposits
5,189,651
5,680,360
(9
)%
5,870,624
(12
)%
5,548,299
(6
)%
Total deposit balances
$
12,234,750
$
12,172,384
1
%
$
12,155,656
1
%
$
12,045,619
2
%
DEPOSIT COMPOSITION (%)
9/30/2019
6/30/2019
12/31/2018
9/30/2018
Noninterest bearing demand deposits
24.8
%
24.7
%
24.9
%
25.1
%
Money market and other
30.7
%
26.6
%
25.0
%
27.0
%
Saving deposits
2.1
%
2.0
%
1.8
%
1.9
%
Time deposits
42.4
%
46.7
%
48.3
%
46.0
%
Total deposit balances
100.0
%
100.0
%
100.0
%
100.0
%
Table Page 6
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
CAPITAL RATIOS:
9/30/2019
6/30/2019
12/31/2018
9/30/2018
Total stockholders’ equity
$
2,031,284
$
1,995,172
$
1,903,211
$
1,904,580
Common Equity Tier 1 ratio
11.89
%
11.90
%
11.44
%
11.61
%
Tier 1 risk-based capital ratio
12.65
%
12.67
%
12.21
%
12.38
%
Total risk-based capital ratio
13.38
%
13.42
%
12.94
%
13.10
%
Tier 1 leverage ratio
11.18
%
10.94
%
10.55
%
10.80
%
Total risk weighted assets
$
12,951,936
$
12,715,685
$
12,749,403
$
12,747,343
Book value per common share
$
16.03
$
15.75
$
15.03
$
14.64
Tangible common equity to tangible assets
1
10.43
%
10.21
%
9.61
%
9.66
%
Tangible common equity per share 1
$
12.27
$
11.98
$
11.25
$
10.96
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.
Reconciliation of GAAP financial
measures to non-GAAP financial measures:
Three Months Ended
Nine Months Ended
9/30/2019
6/30/2019
9/30/2018
9/30/2019
9/30/2018
RETURN ON AVERAGE TANGIBLE COMMON
EQUITY
Average stockholders’ equity
$
2,010,458
$
1,960,500
$
1,899,853
$
1,964,146
$
1,917,696
Less: Goodwill and core deposit intangible
assets, net
(477,159
)
(477,736
)
(479,501
)
(477,730
)
(480,119
)
Average tangible common equity
$
1,533,299
$
1,482,764
$
1,420,352
$
1,486,416
$
1,437,577
Net Income
$
42,592
$
42,681
$
46,378
$
128,031
$
145,140
Return on average tangible common
equity
11.11
%
11.51
%
13.06
%
11.48
%
13.46
%
Three Months Ended
9/30/2019
6/30/2019
12/31/2018
9/30/2018
TANGIBLE COMMON EQUITY
Total stockholders’ equity
$
2,031,284
$
1,995,172
$
1,903,211
$
1,904,580
Less: Goodwill and core deposit intangible
assets, net
(476,840
)
(477,397
)
(478,511
)
(479,127
)
Tangible common equity
$
1,554,444
$
1,517,775
$
1,424,700
$
1,425,453
Total assets
$
15,379,878
$
15,338,827
$
15,305,952
$
15,229,495
Less: Goodwill and core deposit intangible
assets, net
(476,840
)
(477,397
)
(478,511
)
(479,127
)
Tangible assets
$
14,903,038
$
14,861,430
$
14,827,441
$
14,750,368
Common shares outstanding
126,697,925
126,673,822
126,639,912
130,074,103
Tangible common equity to tangible
assets
10.43
%
10.21
%
9.61
%
9.66
%
Tangible common equity per share
$
12.27
$
11.98
$
11.25
$
10.96
Table Page 7
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
Three Months Ended
Nine Months Ended
ALLOWANCE FOR LOAN LOSSES
CHANGES:
9/30/2019
6/30/2019
3/31/2019
12/31/2018
9/30/2018
9/30/2019
9/30/2018
Balance at beginning of period
$
94,066
$
94,217
$
92,557
$
90,629
$
89,881
$
92,557
$
84,541
Provision for loan losses
2,100
1,200
3,000
2,800
7,300
6,300
12,100
Recoveries
780
725
1,292
805
315
2,797
3,186
Charge offs
(2,602
)
(2,076
)
(1,754
)
(1,677
)
(6,867
)
(6,432
)
(9,198
)
PCI allowance adjustment
(462
)
—
(878
)
—
—
(1,340
)
—
Balance at end of period
$
93,882
$
94,066
$
94,217
$
92,557
$
90,629
$
93,882
$
90,629
Net charge offs/average loans receivable
(annualized)
0.06
%
0.05
%
0.02
%
0.03
%
0.22
%
0.04
%
0.07
%
ALLOWANCE FOR LOAN LOSSES
COMPOSITION:
9/30/2019
6/30/2019
3/31/2019
12/31/2018
9/30/2018
Legacy loans 1
$
82,267
$
81,606
$
80,953
$
78,259
$
75,364
Purchased non-impaired loans 2
3,239
3,376
2,948
2,135
2,411
Purchased credit-impaired loans 2
8,376
9,084
10,316
12,163
12,854
Total allowance for loan losses
$
93,882
$
94,066
$
94,217
$
92,557
$
90,629
1
Legacy loans include loans originated by
the Bank’s predecessor banks loans originated by Bank of Hope and
loans that were acquired that have been refinanced as new
loans.
2
Purchased loans were marked to fair value
at acquisition date and the allowance for loan losses reflects
provisions for credit deterioration since the acquisition date.
Three Months Ended
Nine Months Ended
NET CHARGED OFF (RECOVERED) LOANS BY
TYPE:
9/30/2019
6/30/2019
3/31/2019
12/31/2018
9/30/2018
9/30/2019
9/30/2018
Real estate loans
$
951
$
(388
)
$
(1,067
)
$
123
$
6,004
$
(504
)
$
5,577
Commercial loans
596
1,399
1,250
436
230
3,245
(428
)
Consumer loans
275
340
279
313
318
894
863
Total net charge offs
$
1,822
$
1,351
$
462
$
872
$
6,552
$
3,635
$
6,012
Table Page 8
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
NONPERFORMING ASSETS
9/30/2019
6/30/2019
3/31/2019
12/31/2018
9/30/2018
Loans on nonaccrual status 3
$
42,235
$
64,934
$
86,637
$
53,286
$
56,299
Delinquent loans 90 days or more on
accrual status 4
398
353
387
1,529
401
Accruing troubled debt restructured
loans
34,717
40,731
45,204
50,410
52,521
Total nonperforming loans
77,350
106,018
132,228
105,225
109,221
Other real estate owned
19,374
5,644
6,258
7,754
8,981
Total nonperforming assets
$
96,724
$
111,662
$
138,486
$
112,979
$
118,202
Nonperforming assets/total assets
0.63
%
0.73
%
0.90
%
0.74
%
0.78
%
Nonperforming assets/loans receivable
& OREO
0.80
%
0.93
%
1.15
%
0.93
%
0.99
%
Nonperforming assets/total capital
4.76
%
5.60
%
7.12
%
5.94
%
6.21
%
Nonperforming loans/loans receivable
0.64
%
0.89
%
1.10
%
0.87
%
0.92
%
Nonaccrual loans/loans receivable
0.35
%
0.54
%
0.72
%
0.44
%
0.47
%
Allowance for loan losses/loans
receivable
0.78
%
0.79
%
0.78
%
0.77
%
0.76
%
Allowance for loan losses/nonaccrual
loans
222.28
%
144.86
%
108.75
%
173.70
%
160.98
%
Allowance for loan losses/nonperforming
loans
121.37
%
88.73
%
71.25
%
87.96
%
82.98
%
Allowance for loan losses/nonperforming
assets
97.06
%
84.24
%
68.03
%
81.92
%
76.67
%
3
Excludes delinquent SBA loans that are
guaranteed and currently in liquidation totaling $37.3 million,
$32.1 million, $30.5 million, $29.2 million, and $23.1 million at
September 30, 2019, June 30, 2019, March 31, 2019, December 31,
2018, and September 30, 2018, respectively.
4
Excludes purchased credit impaired loans
that are delinquent 90 or more days totaling $15.5 million, $17.6
million, $18.4 million, $14.1 million, and $16.6 million at
September 30, 2019, June 30, 2019, March 31, 2019, December 31,
2018, and September 30, 2018, respectively.
BREAKDOWN OF ACCRUING TROUBLED DEBT
RESTRUCTURED LOANS:
9/30/2019
6/30/2019
3/31/2019
12/31/2018
9/30/2018
Retail buildings
$
3,221
$
2,919
$
2,965
$
3,085
$
3,112
Gas stations/car washes
233
241
255
267
—
Mixed-use facilities
3,200
3,223
3,254
5,956
5,994
Warehouses
10,449
11,246
11,315
7,188
7,219
Other 5
17,614
23,102
27,415
33,914
36,196
Total
$
34,717
$
40,731
$
45,204
$
50,410
$
52,521
5
Includes commercial business, consumer,
and other loans
ACCRUING DELINQUENT LOANS 30-89 DAYS
PAST DUE
9/30/2019
6/30/2019
3/31/2019
12/31/2018
9/30/2018
Legacy
30 - 59 days
$
14,229
$
16,405
$
30,971
$
23,846
$
26,872
60 - 89 days
4,164
718
1,227
218
2,773
Total
$
18,393
$
17,123
$
32,198
$
24,064
$
29,645
Acquired
30 - 59 days
$
11,052
$
1,508
$
2,717
$
1,094
$
5,240
60 - 89 days
371
577
—
406
18
Total
$
11,423
$
2,085
$
2,717
$
1,500
$
5,258
Total accruing delinquent loans 30-89
days past due
$
29,816
$
19,208
$
34,915
$
25,564
$
34,903
Table Page 9
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE
9/30/2019
6/30/2019
3/31/2019
12/31/2018
9/30/2018
Legacy
Real estate loans
$
9,707
$
9,580
$
12,324
$
2,352
$
13,275
Commercial loans
2,004
1,755
2,711
5,159
986
Consumer loans
6,682
5,788
17,163
16,553
15,384
Total
$
18,393
$
17,123
$
32,198
$
24,064
$
29,645
Acquired
Real estate loans
$
10,865
$
214
$
1,371
$
905
$
4,703
Commercial loans
278
77
374
595
555
Consumer loans
280
1,794
972
—
—
Total
$
11,423
$
2,085
$
2,717
$
1,500
$
5,258
Total accruing delinquent loans 30-89
days past due
$
29,816
$
19,208
$
34,915
$
25,564
$
34,903
NONACCRUAL LOANS BY TYPE
9/30/2019
6/30/2019
3/31/2019
12/31/2018
9/30/2018
Real estate loans
$
27,920
$
42,921
$
58,030
$
33,719
$
35,614
Commercial loans
11,242
18,997
27,042
18,128
19,119
Consumer loans
3,073
3,016
1,565
1,439
1,566
Total nonaccrual loans
$
42,235
$
64,934
$
86,637
$
53,286
$
56,299
CRITICIZED LOANS
9/30/2019
6/30/2019
3/31/2019
12/31/2018
9/30/2018
Legacy
Special mention
$
101,892
$
147,050
$
154,671
$
121,622
$
177,563
Substandard
184,518
202,676
223,511
193,494
171,767
Doubtful
17
—
—
—
429
Loss
—
—
351
—
1
Total criticized loans - legacy
$
286,427
$
349,726
$
378,533
$
315,116
$
349,760
Acquired
Special mention
$
37,956
$
39,435
$
50,702
$
41,467
$
38,023
Substandard
84,087
121,165
129,122
124,421
130,078
Doubtful
—
—
218
377
444
Loss
—
1
—
35
—
Total criticized loans - acquired
$
122,043
$
160,601
$
180,042
$
166,300
$
168,545
Total criticized loans
$
408,470
$
510,327
$
558,575
$
481,416
$
518,305
Table Page 10
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191021005840/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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