Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its first quarter ended March 31, 2022.

For the three months ended March 31, 2022, net income increased 18% to $60.7 million, or $0.50 per diluted common share, from $51.6 million, or $0.43 per diluted common share, in the 2021 fourth quarter and increased 39% from $43.7 million, or $0.35 per diluted common share, in the year-ago first quarter.

“For the three months ended March 31, 2022, we delivered a strong quarter of profitability that is reflective of the strategic actions taken in 2021,” said Kevin S. Kim, Chairman, President and Chief Executive Officer. “As expected, our asset quality improved materially with criticized loan balances declining 21% from year-end 2021. Together with a large recovery from a previously charged off loan, we recorded an $11.0 million negative provision for credit losses while at the same time further strengthening our reserves.

“The momentum in our business development efforts continued to build with record first quarter production volume of $1.03 billion, which resulted in 6.7% growth in loans receivable on an annualized basis, excluding PPP loans. Given the increased productivity of our larger banking teams and our more diversified areas of lending expertise, we believe we are well positioned to deliver a very strong year of new loan production that will ultimately lead to enhanced growth in earnings and shareholder returns,” said Kim.

Q1 2022 Highlights

  • Loan originations totaled $1.03 billion, a record first quarter high and representing a 21% increase over the previous first quarter record set in 2021.
  • Excluding PPP, loans receivable increased 6.7% quarter-over-quarter on an annualized basis.
  • Company recorded net recoveries of $17.9 million, reflecting additional recoveries related to a large relationship previously charged off during the 2021 third quarter.
  • Asset quality improved meaningfully quarter-over-quarter with total nonperforming assets decreasing 8.4% and criticized loans decreasing 21.2%.
  • Company recorded a negative provision for credit losses of $11.0 million, reflecting significant reductions in criticized loans and a large net recovery.
  • Net interest margin expanded 8 basis points from the fourth quarter of 2021.
  • Net income increased 18% quarter-over-quarter to $60.7 million, or $0.50 per diluted common share.
  • Total cost of deposits relatively stable, up 1 basis point quarter-over-quarter.
  • Noninterest expenses continued to be well managed with efficiency ratio of 51.50% and noninterest expense to average assets of 1.70%.

Financial Highlights

(dollars in thousands, except per share data) (unaudited)

At or for the Three Months Ended

 

3/31/2022

 

12/31/2021

 

3/31/2021

Net income

$

60,738

 

 

$

51,623

 

 

$

43,687

 

Diluted earnings per share

$

0.50

 

 

$

0.43

 

 

$

0.35

 

Pre-provision net revenue (1)

$

70,989

 

 

$

72,179

 

 

$

60,952

 

Net interest income before (credit) provision for credit losses

$

133,176

 

 

$

133,318

 

 

$

122,579

 

Net interest margin

 

3.21

%

 

 

3.13

%

 

 

3.06

%

Noninterest income

$

13,186

 

 

$

13,097

 

 

$

8,804

 

Noninterest expense

$

75,373

 

 

$

74,236

 

 

$

70,431

 

Net loans receivable

$

13,919,224

 

 

$

13,812,193

 

 

$

13,494,686

 

Deposits

$

14,515,128

 

 

$

15,040,450

 

 

$

14,301,269

 

Total cost of deposits

 

0.24

%

 

 

0.23

%

 

 

0.36

%

Nonaccrual loans(2)

$

52,717

 

 

$

54,616

 

 

$

109,858

 

Nonperforming loans to loans receivable(2)

 

0.71

%

 

 

0.78

%

 

 

1.11

%

ACL to loans receivable

 

1.05

%

 

 

1.01

%

 

 

1.52

%

ACL to nonaccrual loans(2)

 

279.70

%

 

 

257.34

%

 

 

189.28

%

ACL to nonperforming assets(2)

 

144.03

%

 

 

125.76

%

 

 

121.94

%

(Credit) provision for credit losses

$

(11,000

)

 

$

1,500

 

 

$

3,300

 

Net (recoveries) charge offs

$

(17,900

)

 

$

(2,276

)

 

$

2,098

 

Return on average assets (“ROA”)

 

1.37

%

 

 

1.16

%

 

 

1.02

%

Return on average equity (“ROE”)

 

11.62

%

 

 

9.93

%

 

 

8.53

%

Return on average tangible common equity (“ROTCE”)(1)

 

15.01

%

 

 

12.85

%

 

 

11.11

%

Noninterest expense / average assets

 

1.70

%

 

 

1.67

%

 

 

1.65

%

Efficiency ratio

 

51.50

%

 

 

50.70

%

 

 

53.61

%

(1)

Pre-provision net revenue and return on average tangible common equity are non-GAAP financial measures. Management’s reasons and purposes for using these non-GAAP financial measures are set forth on Page 6 of this earnings release. A quantitative reconciliation of the Company’s GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 9.

(2)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation.

Operating Results for the 2022 First Quarter

Net interest income before provision for credit losses for the 2022 first quarter was stable at $133.2 million, compared with $133.3 million in the 2021 fourth quarter, but increased 9% from $122.6 million in the 2021 first quarter. The Company attributed the year-over-year increase to higher interest income due to higher average balances of loans receivable and investment securities and lower interest expense on deposits.

The net interest margin for the 2022 first quarter increased 8 basis points to 3.21% from 3.13% in the preceding fourth quarter and increased 15 basis points from 3.06% in the year-ago first quarter, primarily due to a decrease in interest earning cash which was used to fund a portion of the increase in average loan balances.

The weighted average yield on loans for the 2022 first quarter was 3.88%, compared with 3.95% in the 2021 fourth quarter. The Company attributed the quarter-over-quarter decrease in weighted average yield on loans to the impact of lower interest income related to SBA PPP loans and lower purchase accounting accretion. The weighted average yield on loans for the 2021 first quarter was 3.94%.

The weighted average cost of deposits for the 2022 first quarter increased slightly by 1 basis point to 0.24% from 0.23% in the 2021 fourth quarter, primarily reflecting a lower mix of noninterest bearing demand deposits. Compared with the year-ago first quarter, the weighted average cost of deposits for the 2022 first quarter decreased 12 basis points from 0.36%, largely reflecting a 37 basis point reduction in the cost of time deposits and a significantly improved mix of deposits with time deposits accounting for 15.2% of total deposits at March 31, 2022, versus 24.9% at March 31, 2021.

Noninterest income for the 2022 first quarter increased 1% to $13.2 million from $13.1 million in the 2021 fourth quarter, reflecting higher net gain on sale of SBA loans, largely offset by lower other income and fees, which included quarter-over-quarter decreases in equity investment fair values, dividend income from equity investments and swap fee income. During the 2022 first quarter, the Company sold $58.1 million in the guaranteed portion of SBA 7(a) loans, compared with $41.0 million in the preceding fourth quarter. Noninterest income for the 2022 first quarter increased 50% over $8.8 million in the first quarter of 2021 due to the absence of SBA loan sales to the secondary market in the first quarter of 2021.

Noninterest expense for the 2022 first quarter increased 2% to $75.4 million from $74.2 million for the preceding fourth quarter, reflecting higher salaries and employee benefits largely offset by decreases in most other noninterest expense line items. For the 2021 first quarter, noninterest expense totaled $70.4 million.

Salaries and employee benefits expense for the 2022 first quarter increased to $47.7 million from $44.6 million in the preceding fourth quarter, largely reflecting seasonal increases related to payroll taxes and vacation accruals, along with a decrease in deferred loan origination costs. Salaries and employee benefits expense for the 2021 first quarter totaled $41.2 million. The Company attributed the year-over-year increase in salaries and employee benefits expense to higher base salaries reflecting an increase in full-time equivalent employees, higher group insurance expense and lower deferred loan origination costs.

The Company’s efficiency ratio for the 2022 first quarter was 51.50%, compared with 50.70% in the preceding fourth quarter and 53.61% in the year-ago first quarter. Noninterest expense as a percentage of average assets was 1.70% for the 2022 first quarter, compared with 1.67% for the 2021 fourth quarter and 1.65% for the 2021 first quarter.

The effective tax rate for the 2022 first quarter was 25.9%, compared with 27.0% for the preceding fourth quarter and 24.2% in the year-ago first quarter. The effective tax rate for the 2022 first quarter was higher than the year-ago first quarter due mainly to a decrease in affordable housing tax credits compared with the prior year.

Balance Sheet Summary

New loan originations funded during the 2022 first quarter totaled $1.03 billion, a record first quarter high and reflecting a 21% increase over $847.1 million in the year-ago first quarter. During the seasonally stronger fourth quarter of 2021, the Company originated $1.24 billion of new loans, a record high for any given quarter.

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

(dollars in thousands) (unaudited)

For the Three Months Ended

 

3/31/2022

 

12/31/2021

 

3/31/2021

Commercial real estate

$

529,730

 

$

573,978

 

$

277,704

Commercial

 

335,756

 

 

532,634

 

 

156,622

SBA

 

56,602

 

 

54,848

 

 

36,802

SBA PPP

 

 

 

 

 

304,727

Residential mortgage

 

103,473

 

 

81,325

 

 

69,784

Consumer

 

401

 

 

70

 

 

1,473

Total new loan originations

$

1,025,962

 

$

1,242,855

 

$

847,112

At March 31, 2022, loans receivable increased 0.8% to $14.07 billion from $13.95 billion at December 31, 2021 and increased 2.7% from $13.70 billion at March 31, 2021.

Total deposits at March 31, 2022 declined 3.5% to $14.52 billion from $15.04 billion at December 31, 2021, largely reflecting a decrease in time deposits, but increased 1.5% year-over-year from $14.30 billion at March 31, 2021. Quarter-over-quarter, money market and NOW deposits increased 4.9%, but was offset by a 4.4% decline in noninterest bearing demand deposits and a 20.7% reduction in time deposits. On a year-over-year basis, noninterest bearing demand deposits at March 31, 2022 increased 1.3%, money market and NOW deposits increased 29.4%, and time deposits decreased 37.9%.

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

(dollars in thousands) (unaudited)

3/31/2022

 

12/31/2021

 

% change

 

3/31/2021

 

% change

Noninterest bearing demand deposits

$

5,498,263

 

$

5,751,870

 

(4

)%

 

$

5,427,174

 

1

%

Money market and other

 

6,484,677

 

 

6,178,850

 

5

%

 

 

5,009,419

 

29

%

Saving deposits

 

321,373

 

 

321,377

 

%

 

 

305,326

 

5

%

Time deposits

 

2,210,815

 

 

2,788,353

 

(21

)%

 

 

3,559,350

 

(38

)%

Total deposit balances

$

14,515,128

 

$

15,040,450

 

(3

)%

 

$

14,301,269

 

1

%

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

 

Deposit Breakdown

 

Cost of Deposits

(unaudited)

3/31/2022

 

12/31/2021

 

3/31/2021

 

Q1 2022

 

Q4 2021

 

Q1 2021

Noninterest bearing demand deposits

37.9

%

 

38.3

%

 

38.0

%

 

%

 

%

 

%

Money market and other

44.7

%

 

41.1

%

 

35.0

%

 

0.36

%

 

0.37

%

 

0.42

%

Saving deposits

2.2

%

 

2.1

%

 

2.1

%

 

1.18

%

 

1.18

%

 

1.17

%

Time deposits

15.2

%

 

18.5

%

 

24.9

%

 

0.32

%

 

0.34

%

 

0.69

%

Total deposit balances

100.0

%

 

100.0

%

 

100.0

%

 

0.24

%

 

0.23

%

 

0.36

%

Allowance for Credit Losses

In the 2022 first quarter, the Company recorded a negative provision for credit losses of $11.0 million, compared with a provision for credit losses of $1.5 million in the preceding fourth quarter and a provision for credit losses of $3.3 million in the 2021 first quarter.

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

(dollars in thousands) (unaudited)

3/31/2022

 

12/31/2021

 

3/31/2021

Allowance for credit losses

$

147,450

 

 

$

140,550

 

 

$

207,943

 

Allowance for credit loss/loans receivable

 

1.05

%

 

 

1.01

%

 

 

1.52

%

Allowance for credit losses/nonperforming loans

 

146.92

%

 

 

128.75

%

 

 

136.79

%

Credit Quality

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

(dollars in thousands) (unaudited)

3/31/2022

 

12/31/2021

 

3/31/2021

Loans on nonaccrual status (1)

$

52,717

 

$

54,616

 

$

109,858

Delinquent loans 90 days or more on accrual status

 

3,090

 

 

2,131

 

 

384

Accruing troubled debt restructured loans

 

44,555

 

 

52,418

 

 

41,773

Total nonperforming loans

 

100,362

 

 

109,165

 

 

152,015

Other real estate owned

 

2,010

 

 

2,597

 

 

18,515

Total nonperforming assets

$

102,372

 

$

111,762

 

$

170,530

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $17.0 million, $19.5 million and $25.0 million, at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

Total nonperforming assets at March 31, 2022 declined to $102.4 million from $111.8 million at December 31, 2021 and from $170.5 million at March 31, 2021. The quarter-over-quarter decrease in total nonperforming assets largely reflects a $1.9 million reduction in nonaccrual loans and a $7.9 million reduction in accruing troubled debt restructured loans.

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

(dollars in thousands) (unaudited)

For the Three Months Ended

 

3/31/2022

 

12/31/2021

 

3/31/2021

Net (recoveries) charge offs

$

(17,900

)

 

$

(2,276

)

 

$

2,098

 

Net (recoveries) charge offs/average loans receivable (annualized)

 

(0.52

)%

 

 

(0.07

)%

 

 

0.06

%

Net recoveries in the 2022 first quarter reflects additional partial recoveries from a large loan charged off during the 2021 third quarter.

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

(dollars in thousands) (unaudited)

3/31/2022

 

12/31/2021

 

3/31/2021

Special mention

$

166,958

 

$

257,194

 

$

280,974

Substandard

 

226,661

 

 

242,397

 

 

379,048

Total criticized loans

$

393,619

 

$

499,591

 

$

660,022

The Company noted that the quarter-over-quarter decrease in criticized loan balances at March 31, 2022 largely reflects upgrades of its borrowers’ post-COVID modifications following the receipt of updated financial statements and payoffs of criticized loans.

Capital

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

Hope Bancorp, Inc. (unaudited)

3/31/2022

 

12/31/2021

 

3/31/2021

 

Minimum Guideline for “Well-Capitalized” Bank

Common Equity Tier 1 Capital

11.03%

 

11.03%

 

11.08%

 

6.50%

Tier 1 Leverage Ratio

10.37%

 

10.11%

 

10.15%

 

5.00%

Tier 1 Risk-Based Ratio

11.69%

 

11.70%

 

11.78%

 

8.00%

Total Risk-Based Ratio

12.49%

 

12.42%

 

13.03%

 

10.00%

Following are tangible common equity(1) (“TCE”) per share and TCE as a percentage of tangible assets(1) as of March 31, 2022, December 31, 2021 and March 31, 2021:

(unaudited)

3/31/2022

 

12/31/2021

 

3/31/2021

Tangible common equity per share (1)

$

13.04

 

 

$

13.51

 

 

$

12.73

 

Tangible common equity to tangible assets (2)

 

9.05

%

 

 

9.31

%

 

 

9.40

%

(1)

 

Tangible common equity represents common equity less goodwill and net other intangible assets. Tangible common equity per share represents tangible common equity divided by the number of shares issued and outstanding. Tangible assets represent total assets less goodwill and net other intangible assets. Tangible common equity to tangible assets is the ratio of tangible common equity over tangible assets. Tangible common equity, tangible common equity per share, tangible assets and tangible common equity to tangible assets are non-GAAP financial measures. Management’s reasons and purposes for using these non-GAAP financial measures are set forth in the following section. A quantitative reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 9.

Non-GAAP Financial Metrics

This news release contains certain non-GAAP financial measure disclosures, including pre-provision net revenue, tangible common equity, tangible common equity per share, tangible assets and tangible common equity to tangible assets. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding its operational performance and the Company’s and the Bank’s capital levels and has included these figures in response to market participant interest in these financial metrics. A reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 9.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Tuesday, April 19, 2022 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2022. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through April 26, 2022, replay access code 1867037.

About Hope Bancorp, Inc.

Hope Bancorp, Inc. is the holding company of Bank of Hope, the first and only super regional Korean American bank in the United States with $17.80 billion in total assets as of March 31, 2022. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 54 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama and Georgia. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, 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 news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market and statements regarding our business strategies, objectives and vision. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible 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 of the Company. For additional information concerning these and other risk factors, see the Company’s most recent Annual Report on Form 10-K. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

Assets:

3/31/2022

 

12/31/2021

 

% change

 

3/31/2021

 

% change

Cash and due from banks

$

280,373

 

 

$

316,266

 

 

(11

)%

 

$

376,666

 

 

(26

)%

Securities available for sale, at fair value

 

2,492,486

 

 

 

2,666,275

 

 

(7

)%

 

 

2,233,744

 

 

12

%

Federal Home Loan Bank (“FHLB”) stock and other investments

 

87,201

 

 

 

87,961

 

 

(1

)%

 

 

102,242

 

 

(15

)%

Loans held for sale, at the lower of cost or fair value

 

115,756

 

 

 

99,049

 

 

17

%

 

 

19,672

 

 

488

%

Loans receivable

 

14,066,674

 

 

 

13,952,743

 

 

1

%

 

 

13,702,629

 

 

3

%

Allowance for credit losses

 

(147,450

)

 

 

(140,550

)

 

(5

)%

 

 

(207,943

)

 

29

%

Net loans receivable

 

13,919,224

 

 

 

13,812,193

 

 

1

%

 

 

13,494,686

 

 

3

%

Accrued interest receivable

 

37,949

 

 

 

41,842

 

 

(9

)%

 

 

60,498

 

 

(37

)%

Premises and equipment, net

 

45,642

 

 

 

45,667

 

 

%

 

 

47,918

 

 

(5

)%

Bank owned life insurance

 

77,390

 

 

 

77,081

 

 

%

 

 

77,089

 

 

%

Goodwill

 

464,450

 

 

 

464,450

 

 

%

 

 

464,450

 

 

%

Servicing assets

 

10,874

 

 

 

10,418

 

 

4

%

 

 

12,084

 

 

(10

)%

Other intangible assets, net

 

7,184

 

 

 

7,671

 

 

(6

)%

 

 

9,198

 

 

(22

)%

Other assets

 

265,285

 

 

 

260,188

 

 

2

%

 

 

300,613

 

 

(12

)%

Total assets

$

17,803,814

 

 

$

17,889,061

 

 

%

 

$

17,198,860

 

 

4

%

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Deposits

$

14,515,128

 

 

$

15,040,450

 

 

(3

)%

 

$

14,301,269

 

 

1

%

FHLB and FRB borrowings

 

772,000

 

 

 

300,000

 

 

157

%

 

 

400,000

 

 

93

%

Convertible notes, net

 

216,444

 

 

 

216,209

 

 

%

 

 

215,504

 

 

%

Subordinated debentures

 

105,652

 

 

 

105,354

 

 

%

 

 

104,469

 

 

1

%

Accrued interest payable

 

4,826

 

 

 

4,272

 

 

13

%

 

 

8,611

 

 

(44

)%

Other liabilities

 

148,707

 

 

 

129,793

 

 

15

%

 

 

123,426

 

 

20

%

Total liabilities

$

15,762,757

 

 

$

15,796,078

 

 

%

 

$

15,153,279

 

 

4

%

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

 

 

Common stock, $0.001 par value

$

137

 

 

$

136

 

 

1

%

 

$

136

 

 

1

%

Capital surplus

 

1,422,602

 

 

 

1,421,698

 

 

%

 

 

1,417,137

 

 

%

Retained earnings

 

976,483

 

 

 

932,561

 

 

5

%

 

 

823,085

 

 

19

%

Treasury stock, at cost

 

(250,000

)

 

 

(250,000

)

 

%

 

 

(200,000

)

 

(25

)%

Accumulated other comprehensive (loss) gain, net

 

(108,165

)

 

 

(11,412

)

 

(848

)%

 

 

5,223

 

 

N/A

 

Total stockholders’ equity

 

2,041,057

 

 

 

2,092,983

 

 

(2

)%

 

 

2,045,581

 

 

%

Total liabilities and stockholders’ equity

$

17,803,814

 

 

$

17,889,061

 

 

%

 

$

17,198,860

 

 

4

%

 

 

 

 

 

 

 

 

 

 

Common stock shares - authorized

 

150,000,000

 

 

 

150,000,000

 

 

 

 

 

150,000,000

 

 

 

Common stock shares - outstanding

 

120,327,689

 

 

 

120,006,452

 

 

 

 

 

123,480,494

 

 

 

Treasury stock shares

 

16,343,849

 

 

 

16,343,849

 

 

 

 

 

12,661,581

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

 

 

Three Months Ended

 

3/31/2022

 

12/31/2021

 

% change

 

3/31/2021

 

% change

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

132,672

 

 

$

133,821

 

(1

)%

 

$

129,736

 

2

%

Interest on securities

 

11,656

 

 

 

10,657

 

9

%

 

 

7,915

 

47

%

Interest on federal funds sold and other investments

 

544

 

 

 

691

 

(21

)%

 

 

642

 

(15

)%

Total interest income

 

144,872

 

 

 

145,169

 

%

 

 

138,293

 

5

%

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

8,676

 

 

 

8,905

 

(3

)%

 

 

12,770

 

(32

)%

Interest on other borrowings and convertible notes

 

3,020

 

 

 

2,946

 

3

%

 

 

2,944

 

3

%

Total interest expense

 

11,696

 

 

 

11,851

 

(1

)%

 

 

15,714

 

(26

)%

 

 

 

 

 

 

 

 

 

 

Net interest income before provision (credit) for credit losses

 

133,176

 

 

 

133,318

 

%

 

 

122,579

 

9

%

Provision (credit) for credit losses

 

(11,000

)

 

 

1,500

 

N/A

 

 

 

3,300

 

N/A

 

Net interest income after provision (credit) for credit losses

 

144,176

 

 

 

131,818

 

9

%

 

 

119,279

 

21

%

 

 

 

 

 

 

 

 

 

 

Service fees on deposit accounts

 

1,974

 

 

 

1,894

 

4

%

 

 

1,790

 

10

%

International service fees

 

794

 

 

 

1,061

 

(25

)%

 

 

841

 

(6

)%

Loan servicing fees, net

 

836

 

 

 

747

 

12

%

 

 

1,044

 

(20

)%

Wire transfer fees

 

900

 

 

 

916

 

(2

)%

 

 

844

 

7

%

Net gains on sales of SBA loans

 

5,603

 

 

 

3,614

 

55

%

 

 

 

100

%

Net gains on sales of residential mortgage loans

 

757

 

 

 

530

 

43

%

 

 

2,096

 

(64

)%

Other income and fees

 

2,322

 

 

 

4,335

 

(46

)%

 

 

2,189

 

6

%

Total noninterest income

 

13,186

 

 

 

13,097

 

1

%

 

 

8,804

 

50

%

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

47,745

 

 

 

44,608

 

7

%

 

 

41,216

 

16

%

Occupancy

 

7,335

 

 

 

7,391

 

(1

)%

 

 

6,967

 

5

%

Furniture and equipment

 

4,644

 

 

 

4,642

 

%

 

 

4,186

 

11

%

Advertising and marketing

 

1,636

 

 

 

2,329

 

(30

)%

 

 

1,625

 

1

%

Data processing and communications

 

2,461

 

 

 

2,789

 

(12

)%

 

 

2,737

 

(10

)%

Professional fees

 

2,211

 

 

 

2,439

 

(9

)%

 

 

2,903

 

(24

)%

FDIC assessment

 

1,569

 

 

 

1,366

 

15

%

 

 

1,255

 

25

%

Credit related expenses

 

1,112

 

 

 

873

 

27

%

 

 

2,218

 

(50

)%

OREO expense, net

 

357

 

 

 

811

 

(56

)%

 

 

281

 

27

%

Other

 

6,303

 

 

 

6,988

 

(10

)%

 

 

7,043

 

(11

)%

Total noninterest expense

 

75,373

 

 

 

74,236

 

2

%

 

 

70,431

 

7

%

Income before income taxes

 

81,989

 

 

 

70,679

 

16

%

 

 

57,652

 

42

%

Income tax provision

 

21,251

 

 

 

19,056

 

12

%

 

 

13,965

 

52

%

Net income

$

60,738

 

 

$

51,623

 

18

%

 

$

43,687

 

39

%

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share - Basic

$

0.51

 

 

$

0.43

 

 

 

$

0.35

 

 

Earnings Per Common Share - Diluted

$

0.50

 

 

$

0.43

 

 

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding - Basic

 

120,131,380

 

 

 

120,160,300

 

 

 

 

123,324,745

 

 

Weighted Average Shares Outstanding - Diluted

 

121,089,474

 

 

 

121,025,925

 

 

 

 

124,336,130

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

 

 

 

 

 

 

 

For the Three Months Ended

(Annualized)

Profitability measures:

3/31/2022

 

12/31/2021

 

3/31/2021

ROA

 

1.37

%

 

 

1.16

%

 

 

1.02

%

ROE

 

11.62

%

 

 

9.93

%

 

 

8.53

%

ROTCE (1)

 

15.01

%

 

 

12.85

%

 

 

11.11

%

Net interest margin

 

3.21

%

 

 

3.13

%

 

 

3.06

%

Efficiency ratio

 

51.50

%

 

 

50.70

%

 

 

53.61

%

Noninterest expense / average assets

 

1.70

%

 

 

1.67

%

 

 

1.65

%

 

 

 

 

 

 

(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

Pre-tax acquisition accounting adjustments:

3/31/2022

 

12/31/2021

 

3/31/2021

Accretion on acquired loans (including acquired credit deteriorated loans)

$

883

 

 

$

1,950

 

 

$

2,960

 

Amortization of premium on low income housing tax credits

 

(76

)

 

 

(73

)

 

 

(73

)

Accretion of discount on acquired subordinated debt

 

(298

)

 

 

(296

)

 

 

(290

)

Amortization of core deposit intangibles

 

(487

)

 

 

(509

)

 

 

(509

)

Total acquisition accounting adjustments

$

22

 

 

$

1,072

 

 

$

2,088

 

 

 

 

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

 

Three Months Ended

 

3/31/2022

 

12/31/2021

 

3/31/2021

 

 

 

Interest

 

Annualized

 

 

 

Interest

 

Annualized

 

 

 

Interest

 

Annualized

 

Average

 

Income/

 

Average

 

Average

 

Income/

 

Average

 

Average

 

Income/

 

Average

 

Balance

 

Expense

 

Yield/Cost

 

Balance

 

Expense

 

Yield/Cost

 

Balance

 

Expense

 

Yield/Cost

INTEREST EARNING ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including loans held for sale

$

13,871,974

 

$

132,672

 

3.88

%

 

$

13,447,009

 

$

133,821

 

3.95

%

 

$

13,346,264

 

$

129,736

 

3.94

%

Securities available for sale

 

2,621,220

 

 

11,656

 

1.80

%

 

 

2,674,903

 

 

10,657

 

1.58

%

 

 

2,267,409

 

 

7,915

 

1.42

%

FHLB stock and other investments

 

352,774

 

 

544

 

0.63

%

 

 

773,579

 

 

691

 

0.35

%

 

 

640,392

 

 

642

 

0.41

%

Total interest earning assets

$

16,845,968

 

$

144,872

 

3.49

%

 

$

16,895,491

 

$

145,169

 

3.41

%

 

$

16,254,065

 

$

138,293

 

3.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST BEARING LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand, interest bearing

$

6,337,866

 

$

5,701

 

0.36

%

 

$

5,961,363

 

$

5,522

 

0.37

%

 

$

5,256,579

 

$

5,490

 

0.42

%

Savings

 

318,508

 

 

927

 

1.18

%

 

 

316,758

 

 

946

 

1.18

%

 

 

301,184

 

 

870

 

1.17

%

Time deposits

 

2,619,491

 

 

2,048

 

0.32

%

 

 

2,823,613

 

 

2,437

 

0.34

%

 

 

3,767,109

 

 

6,410

 

0.69

%

Total interest bearing deposits

 

9,275,865

 

 

8,676

 

0.38

%

 

 

9,101,734

 

 

8,905

 

0.39

%

 

 

9,324,872

 

 

12,770

 

0.56

%

FHLB and FRB borrowings

 

242,556

 

 

687

 

1.15

%

 

 

216,882

 

 

648

 

1.19

%

 

 

215,889

 

 

642

 

1.21

%

Convertible notes, net

 

216,305

 

 

1,323

 

2.45

%

 

 

216,078

 

 

1,322

 

2.39

%

 

 

215,002

 

 

1,322

 

2.46

%

Subordinated debentures

 

101,577

 

 

1,010

 

3.98

%

 

 

101,295

 

 

976

 

3.77

%

 

 

100,392

 

 

980

 

3.90

%

Total interest bearing liabilities

$

9,836,303

 

$

11,696

 

0.48

%

 

$

9,635,989

 

$

11,851

 

0.49

%

 

$

9,856,155

 

$

15,714

 

0.65

%

Noninterest bearing demand deposits

 

5,672,768

 

 

 

 

 

 

5,967,251

 

 

 

 

 

 

5,052,532

 

 

 

 

Total funding liabilities/cost of funds

$

15,509,071

 

 

 

0.31

%

 

$

15,603,240

 

 

 

0.30

%

 

$

14,908,687

 

 

 

0.43

%

Net interest income/net interest spread

 

 

$

133,176

 

3.01

%

 

 

 

$

133,318

 

2.92

%

 

 

 

$

122,579

 

2.80

%

Net interest margin

 

 

 

 

3.21

%

 

 

 

 

 

3.13

%

 

 

 

 

 

3.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing demand deposits

$

5,672,768

 

$

 

%

 

$

5,967,251

 

$

 

%

 

$

5,052,532

 

$

 

%

Interest bearing deposits

 

9,275,865

 

 

8,676

 

0.38

%

 

 

9,101,734

 

 

8,905

 

0.39

%

 

 

9,324,872

 

 

12,770

 

0.56

%

Total deposits

$

14,948,633

 

$

8,676

 

0.24

%

 

$

15,068,985

 

$

8,905

 

0.23

%

 

$

14,377,404

 

$

12,770

 

0.36

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

Three Months Ended

AVERAGE BALANCES:

3/31/2022

 

12/31/2021

 

% change

 

3/31/2021

 

% change

Loans receivable, including loans held for sale

$

13,871,974

 

 

$

13,447,009

 

 

3

%

 

$

13,346,264

 

 

4

%

Investments

 

2,973,994

 

 

 

3,448,482

 

 

(14

)%

 

 

2,907,801

 

 

2

%

Interest earning assets

 

16,845,968

 

 

 

16,895,491

 

 

%

 

 

16,254,065

 

 

4

%

Total assets

 

17,742,402

 

 

 

17,834,345

 

 

(1

)%

 

 

17,115,407

 

 

4

%

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

 

9,275,865

 

 

 

9,101,734

 

 

2

%

 

 

9,324,872

 

 

(1

)%

Interest bearing liabilities

 

9,836,303

 

 

 

9,635,989

 

 

2

%

 

 

9,856,155

 

 

%

Noninterest bearing demand deposits

 

5,672,768

 

 

 

5,967,251

 

 

(5

)%

 

 

5,052,532

 

 

12

%

Stockholders’ equity

 

2,090,755

 

 

 

2,079,694

 

 

1

%

 

 

2,047,506

 

 

2

%

Net interest earning assets

 

7,009,665

 

 

 

7,259,502

 

 

(3

)%

 

 

6,397,910

 

 

10

%

 

 

 

 

 

 

 

 

 

 

LOAN PORTFOLIO COMPOSITION:

3/31/2022

 

12/31/2021

 

% change

 

3/31/2021

 

% change

Commercial loans

$

4,124,715

 

 

$

4,208,674

 

 

(2

)%

 

$

4,346,244

 

 

(5

)%

Real estate loans

 

9,262,305

 

 

 

9,105,931

 

 

2

%

 

 

8,811,423

 

 

5

%

Consumer and other loans

 

679,654

 

 

 

638,138

 

 

7

%

 

 

544,962

 

 

25

%

Loans, net of deferred loan fees and costs

 

14,066,674

 

 

 

13,952,743

 

 

1

%

 

 

13,702,629

 

 

3

%

Allowance for credit losses

 

(147,450

)

 

 

(140,550

)

 

(5

)%

 

 

(207,943

)

 

29

%

Loans receivable, net

$

13,919,224

 

 

$

13,812,193

 

 

1

%

 

$

13,494,686

 

 

3

%

 

 

 

 

 

 

 

 

 

 

REAL ESTATE LOANS BY PROPERTY TYPE:

3/31/2022

 

12/31/2021

 

% change

 

3/31/2021

 

% change

Retail buildings

$

2,598,373

 

 

$

2,522,976

 

 

3

%

 

$

2,317,017

 

 

12

%

Hotels/motels

 

1,208,217

 

 

 

1,308,405

 

 

(8

)%

 

 

1,619,661

 

 

(25

)%

Gas stations/car washes

 

1,055,383

 

 

 

1,050,730

 

 

%

 

 

913,176

 

 

16

%

Mixed-use facilities

 

872,362

 

 

 

854,793

 

 

2

%

 

 

752,729

 

 

16

%

Warehouses

 

1,263,791

 

 

 

1,244,339

 

 

2

%

 

 

1,092,549

 

 

16

%

Multifamily

 

841,316

 

 

 

744,068

 

 

13

%

 

 

531,306

 

 

58

%

Other

 

1,422,863

 

 

 

1,380,620

 

 

3

%

 

 

1,584,985

 

 

(10

)%

Total

$

9,262,305

 

 

$

9,105,931

 

 

2

%

 

$

8,811,423

 

 

5

%

 

 

 

 

 

 

 

 

 

 

DEPOSIT COMPOSITION

3/31/2022

 

12/31/2021

 

% change

 

3/31/2021

 

% change

Noninterest bearing demand deposits

$

5,498,263

 

 

$

5,751,870

 

 

(4

)%

 

$

5,427,174

 

 

1

%

Money market and other

 

6,484,677

 

 

 

6,178,850

 

 

5

%

 

 

5,009,419

 

 

29

%

Saving deposits

 

321,373

 

 

 

321,377

 

 

%

 

 

305,326

 

 

5

%

Time deposits

 

2,210,815

 

 

 

2,788,353

 

 

(21

)%

 

 

3,559,350

 

 

(38

)%

Total deposit balances

$

14,515,128

 

 

$

15,040,450

 

 

(3

) %

 

$

14,301,269

 

 

1

%

 

 

 

 

 

 

 

 

 

 

DEPOSIT COMPOSITION (%)

3/31/2022

 

12/31/2021

 

 

 

3/31/2021

 

 

Noninterest bearing demand deposits

 

37.9

%

 

 

38.3

%

 

 

 

 

38.0

%

 

 

Money market and other

 

44.7

%

 

 

41.1

%

 

 

 

 

35.0

%

 

 

Saving deposits

 

2.2

%

 

 

2.1

%

 

 

 

 

2.1

%

 

 

Time deposits

 

15.2

%

 

 

18.5

%

 

 

 

 

24.9

%

 

 

Total deposit balances

 

100.0

%

 

 

100.0

%

 

 

 

 

100.0

%

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS:

3/31/2022

 

12/31/2021

 

3/31/2021

 

 

 

 

Total stockholders’ equity

$

2,041,057

 

 

$

2,092,983

 

 

$

2,045,581

 

 

 

 

 

Common equity tier 1 ratio

 

11.03

%

 

 

11.03

%

 

 

11.08

%

 

 

 

 

Tier 1 risk-based capital ratio

 

11.69

%

 

 

11.70

%

 

 

11.78

%

 

 

 

 

Total risk-based capital ratio

 

12.49

%

 

 

12.42

%

 

 

13.03

%

 

 

 

 

Tier 1 leverage ratio

 

10.37

%

 

 

10.11

%

 

 

10.15

%

 

 

 

 

Total risk weighted assets

$

15,393,639

 

 

$

15,036,292

 

 

$

14,338,828

 

 

 

 

 

Book value per common share

$

16.96

 

 

$

17.44

 

 

$

16.57

 

 

 

 

 

Tangible common equity to tangible assets (1)

 

9.05

%

 

 

9.31

%

 

 

9.40

%

 

 

 

 

Tangible common equity per share (1)

$

13.04

 

 

$

13.51

 

 

$

12.73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

ALLOWANCE FOR CREDIT LOSSES CHANGES:

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

 

3/31/2021

Balance at beginning of period

$

140,550

 

 

$

136,774

 

 

$

189,452

 

 

$

207,943

 

 

$

206,741

 

(Credit) provision for credit losses

 

(11,000

)

 

 

1,500

 

 

 

(10,000

)

 

 

(7,000

)

 

 

3,300

 

Recoveries

 

19,403

 

 

 

3,615

 

 

 

1,906

 

 

 

1,301

 

 

 

1,423

 

Charge offs

 

(1,503

)

 

 

(1,339

)

 

 

(44,584

)

 

 

(12,792

)

 

 

(3,521

)

Balance at end of period

$

147,450

 

 

$

140,550

 

 

$

136,774

 

 

$

189,452

 

 

$

207,943

 

Net (recoveries) charge offs/average loans receivable (annualized)

 

(0.52

) %

 

 

(0.07

) %

 

 

1.28

%

 

 

0.35

%

 

 

0.06

%

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

NET LOAN (RECOVERIES) CHARGE OFFS:

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

 

3/31/2021

Real estate loans

$

(16,418

)

 

$

(2,352

)

 

$

40,542

 

 

$

11,281

 

 

$

2,234

 

Commercial loans

 

(1,529

)

 

 

144

 

 

 

1,117

 

 

 

181

 

 

 

(80

)

Consumer loans

 

47

 

 

 

(68

)

 

 

1,019

 

 

 

29

 

 

 

(56

)

Total net (recoveries) charge offs

$

(17,900

)

 

$

(2,276

)

 

$

42,678

 

 

$

11,491

 

 

$

2,098

 

 

 

 

 

 

 

 

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

NONPERFORMING ASSETS:

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

 

3/31/2021

Loans on nonaccrual status (1)

$

52,717

 

 

$

54,616

 

 

$

54,380

 

 

$

111,008

 

 

$

109,858

 

Delinquent loans 90 days or more on accrual status

 

3,090

 

 

 

2,131

 

 

 

4,567

 

 

 

4,759

 

 

 

384

 

Accruing troubled debt restructured loans

 

44,555

 

 

 

52,418

 

 

 

39,509

 

 

 

51,360

 

 

 

41,773

 

Total nonperforming loans

 

100,362

 

 

 

109,165

 

 

 

98,456

 

 

 

167,127

 

 

 

152,015

 

Other real estate owned

 

2,010

 

 

 

2,597

 

 

 

15,213

 

 

 

16,619

 

 

 

18,515

 

Total nonperforming assets

$

102,372

 

 

$

111,762

 

 

$

113,669

 

 

$

183,746

 

 

$

170,530

 

Nonperforming assets/total assets

 

0.58

%

 

 

0.62

%

 

 

0.64

%

 

 

1.05

%

 

 

0.99

%

Nonperforming assets/loans receivable & OREO

 

0.73

%

 

 

0.80

%

 

 

0.85

%

 

 

1.37

%

 

 

1.24

%

Nonperforming assets/total capital

 

5.02

%

 

 

5.34

%

 

 

5.48

%

 

 

8.78

%

 

 

8.34

%

Nonperforming loans/loans receivable

 

0.71

%

 

 

0.78

%

 

 

0.73

%

 

 

1.24

%

 

 

1.11

%

Nonaccrual loans/loans receivable

 

0.37

%

 

 

0.39

%

 

 

0.41

%

 

 

0.83

%

 

 

0.80

%

Allowance for credit losses/loans receivable

 

1.05

%

 

 

1.01

%

 

 

1.02

%

 

 

1.41

%

 

 

1.52

%

Allowance for credit losses/nonaccrual loans

 

279.70

%

 

 

257.34

%

 

 

251.52

%

 

 

170.67

%

 

 

189.28

%

Allowance for credit losses/nonperforming loans

 

146.92

%

 

 

128.75

%

 

 

138.92

%

 

 

113.36

%

 

 

136.79

%

Allowance for credit losses/nonperforming assets

 

144.03

%

 

 

125.76

%

 

 

120.33

%

 

 

103.11

%

 

 

121.94

%

 

 

 

 

 

 

 

 

 

 

(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $17.0 million, $19.5 million, $20.6 million, $23.6 million, and $25.0 million, at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONACCRUAL LOANS BY TYPE:

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

 

3/31/2021

Real estate loans

$

36,655

 

 

$

39,756

 

 

$

41,673

 

 

$

95,622

 

 

$

91,940

 

Commercial loans

 

8,686

 

 

 

11,025

 

 

 

10,991

 

 

 

12,217

 

 

 

14,080

 

Consumer loans

 

7,376

 

 

 

3,835

 

 

 

1,716

 

 

 

3,169

 

 

 

3,838

 

Total nonaccrual loans

$

52,717

 

 

$

54,616

 

 

$

54,380

 

 

$

111,008

 

 

$

109,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

 

3/31/2021

Retail buildings

$

24,356

 

 

$

28,483

 

 

$

11,280

 

 

$

12,110

 

 

$

6,319

 

Hotels/motels

 

 

 

 

472

 

 

 

 

 

 

 

 

 

 

Gas stations/car washes

 

193

 

 

 

197

 

 

 

202

 

 

 

206

 

 

 

210

 

Mixed-use facilities

 

2,836

 

 

 

2,846

 

 

 

7,937

 

 

 

7,967

 

 

 

3,377

 

Warehouses

 

5,321

 

 

 

5,366

 

 

 

4,908

 

 

 

14,099

 

 

 

14,124

 

Other (2)

 

11,849

 

 

 

15,054

 

 

 

15,182

 

 

 

16,978

 

 

 

17,743

 

Total

$

44,555

 

 

$

52,418

 

 

$

39,509

 

 

$

51,360

 

 

$

41,773

 

 

 

 

 

 

 

 

 

 

 

(2) Includes commercial business, consumer, and other loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

 

3/31/2021

30 - 59 days

$

12,439

 

$

29,723

 

$

15,016

 

$

22,466

 

$

18,175

60 - 89 days

 

3,090

 

 

10,345

 

 

4,746

 

 

6,987

 

 

8,314

Total

$

15,529

 

$

40,068

 

$

19,762

 

$

29,453

 

$

26,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE:

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

 

3/31/2021

Real estate loans

$

6,097

 

$

20,232

 

$

10,359

 

$

21,432

 

$

18,331

Commercial loans

 

5,003

 

 

3,057

 

 

9,377

 

 

560

 

 

1,002

Consumer loans

 

4,429

 

 

16,779

 

 

26

 

 

7,461

 

 

7,156

Total

$

15,529

 

$

40,068

 

$

19,762

 

$

29,453

 

$

26,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CRITICIZED LOANS:

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

 

3/31/2021

Special mention

$

166,958

 

$

257,194

 

$

306,766

 

$

294,559

 

$

280,974

Substandard

 

226,661

 

 

242,397

 

 

243,684

 

 

380,955

 

 

379,048

Total criticized loans

$

393,619

 

$

499,591

 

$

550,450

 

$

675,514

 

$

660,022

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

 

3/31/2022

 

12/31/2021

 

3/31/2021

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

 

 

 

 

 

Average stockholders’ equity

$

2,090,755

 

 

$

2,079,694

 

 

$

2,047,506

 

Less: Goodwill and core deposit intangible assets, net

 

(471,921

)

 

 

(472,405

)

 

 

(473,961

)

Average tangible common equity

$

1,618,834

 

 

$

1,607,289

 

 

$

1,573,545

 

 

 

 

 

 

 

Net income

$

60,738

 

 

$

51,623

 

 

$

43,687

 

Return on average tangible common equity (annualized)

 

15.01

%

 

 

12.85

%

 

 

11.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

3/31/2022

 

12/31/2021

 

3/31/2021

TANGIBLE COMMON EQUITY

 

 

 

 

 

Total stockholders’ equity

$

2,041,057

 

 

$

2,092,983

 

 

$

2,045,581

 

Less: Goodwill and core deposit intangible assets, net

 

(471,634

)

 

 

(472,121

)

 

 

(473,648

)

Tangible common equity

$

1,569,423

 

 

$

1,620,862

 

 

$

1,571,933

 

 

 

 

 

 

 

Total assets

$

17,803,814

 

 

$

17,889,061

 

 

$

17,198,860

 

Less: Goodwill and core deposit intangible assets, net

 

(471,634

)

 

 

(472,121

)

 

 

(473,648

)

Tangible assets

$

17,332,180

 

 

$

17,416,940

 

 

$

16,725,212

 

 

 

 

 

 

 

Common shares outstanding

 

120,327,689

 

 

 

120,006,452

 

 

 

123,480,494

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

9.05

%

 

 

9.31

%

 

 

9.40

%

Tangible common equity per share

$

13.04

 

 

$

13.51

 

 

$

12.73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

3/31/2022

 

12/31/2021

 

3/31/2021

PRE-PROVISION NET REVENUE

 

 

 

 

 

Net interest income before provision (credit) for credit losses

$

133,176

 

 

$

133,318

 

 

$

122,579

 

Noninterest income

 

13,186

 

 

 

13,097

 

 

 

8,804

 

Revenue

 

146,362

 

 

 

146,415

 

 

 

131,383

 

 

 

 

 

 

 

Noninterest expense

 

75,373

 

 

 

74,236

 

 

 

70,431

 

Pre-provision net revenue

$

70,989

 

 

$

72,179

 

 

$

60,952

 

 

 

 

 

 

 

 

Alex Ko Senior EVP & Chief Financial Officer 213-427-6560 alex.ko@bankofhope.com

Angie Yang SVP, Director of Investor Relations & Corporate Communications 213-251-2219 angie.yang@bankofhope.com

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