Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding
company of Bank of Hope (the “Bank”), today reported unaudited
financial results for its fourth quarter and twelve months ended
December 31, 2024. For the three months ended December 31, 2024,
net income totaled $24.3 million, or $0.20 per diluted common
share. This compares with net income of $24.2 million, or $0.20 per
diluted common share, in the third quarter of 2024. For the full
year ended December 31, 2024, net income totaled $99.6 million, or
$0.82 per diluted common share. Excluding notable items(1), net
income for the 2024 full year was $103.4 million, or $0.85 per
diluted common share.
“For the 2024 fourth quarter, our pre-provision net revenue(2)
increased 14% to $40.4 million, up from $35.4 million in the
preceding third quarter. Quarter-over-quarter, our total revenue
grew, led by strong growth in noninterest income, and our
noninterest expense decreased, enhancing our efficiency,” said
Kevin S. Kim, Chairman, President and Chief Executive Officer. “Our
asset quality improved with an 11% decrease in criticized loans and
nonperforming assets down 13% since September 30, 2024.
“In 2024, we focused on strengthening our deposit base, reducing
brokered deposits to 7% of total deposits as of December 31, 2024,
down from 10% as of December 31, 2023. In the second half of 2024,
loan growth inflected and loans receivable grew 1% on an annualized
basis since June 30, 2024. With ample liquidity and a tangible
common equity ratio(3) over 10% as of December 31, 2024, we are
well positioned to support growth in the new year.
“We are in the final stages of preparing for the integration of
Territorial Savings Bank as a division of Bank of Hope, and are
looking forward to building upon Territorial’s legacy. The addition
of Territorial’s low-cost core deposits and residential mortgage
loans with pristine asset quality will be meaningful contributors
to the combined company in 2025. We anticipate the pending merger
with Territorial Bancorp Inc. (NASDAQ: TBNK), the stock holding
company of Territorial Savings Bank, will be completed during the
first quarter of 2025, subject to regulatory approvals.
“We are heartbroken to see the unprecedented destruction that
the wildfires have caused in the Greater Los Angeles area. As one
of the largest independent banks headquartered in this great city,
we are committed to taking a leadership role in addressing the
immediate and rebuilding needs of those impacted by the fires. Our
recent cash donation to the United Way of Greater Los Angeles
Wildfire Response Fund underscores our unwavering commitment to the
community. I am confident that the impacted areas will be rebuilt
stronger and better,” concluded Kim.
_____________________________________
(1)
Net income, excluding merger-related
expenses, restructuring-related costs and gains, which included net
gains on the sale of branches in Virginia, and the FDIC special
assessment expense (also referred to collectively as the “notable
items”), is a non-GAAP financial measure. Quantitative
reconciliations of the most directly comparable GAAP to non-GAAP
financial measures are provided in the accompanying financial
information on Table Pages 10 through 12.
(2)
Pre-provision net revenue (“PPNR”) is a
non-GAAP financial measure. Quantitative reconciliations of the
most directly comparable GAAP to non-GAAP financial measures are
provided in the accompanying financial information on Table Pages
10 through 12.
(3)
Tangible common equity ratio is a non-GAAP
financial measure. Quantitative reconciliations of the most
directly comparable GAAP to non-GAAP financial measures are
provided in the accompanying financial information on Table Pages
10 through 12.
Operating Results for the 2024 Fourth
Quarter
Revenue. 2024 fourth quarter revenue of $118.0 million
grew $1.4 million, or 1%, from $116.6 million for the immediately
preceding third quarter. Quarter-over-quarter growth in noninterest
income more than offset the decrease in net interest income before
provision for credit losses. Pre-provision net revenue (“PPNR”),
which is revenue less noninterest expense, was $40.4 million in the
2024 fourth quarter, up $5.0 million, or 14%, from $35.4 million
for the third quarter of 2024. Excluding notable items(4), fourth
quarter 2024 PPNR of $40.0 million grew 9%
quarter-over-quarter.
Net interest income and net interest margin. Net interest
income before provision for credit losses for the 2024 fourth
quarter totaled $102.1 million, a decrease of $2.7 million, or 3%,
from $104.8 million in the immediately preceding third quarter.
2024 fourth quarter interest income of $226.6 million decreased 4%
from $235.1 million in the immediately preceding third quarter. The
quarter-over-quarter decrease in interest income reflected lower
loan yields because of Federal Funds target rate cuts, $1.7 million
of reversed interest income due to loans moving to nonaccrual
status, as well as lower yields on and a lower volume of average
interest earning cash and deposits at other banks. As of December
31, 2024, the upper Federal Funds target rate was 4.50%, down from
a peak of 5.50% as of September 17, 2024.
The decrease in interest income was partially offset by lower
interest expense, which totaled $124.5 million in the 2024 fourth
quarter, a decrease of 4% from $130.3 million in the immediately
preceding third quarter. The decrease in interest expense was
primarily driven by a 21 basis point quarter-over-quarter reduction
in the average cost of interest bearing deposits to 4.38%, down
from 4.59% in the third quarter of 2024, reflecting the impact of
the Federal Funds rate cuts. The average cost of total deposits for
the 2024 fourth quarter decreased 12 basis points to 3.32%, down
from 3.44% for the third quarter of 2024.
Net interest margin for the 2024 fourth quarter was 2.50%, down
five basis points from 2.55% in the 2024 third quarter. Excluding
the impact of the aforementioned reversed interest income, the net
interest margin for the 2024 fourth quarter would have been
2.54%.
Noninterest income. Noninterest income for the 2024
fourth quarter increased to $15.9 million, up $4.0 million, or 34%,
from $11.8 million in the immediately preceding third quarter. The
Company recorded net gains on the sale of SBA loans of $3.1 million
in the 2024 fourth quarter, compared with $2.7 million in the
immediately preceding third quarter. In the fourth quarter of 2024,
the Company sold $48.4 million of SBA loans, compared with $41.4
million in the third quarter of 2024. Other noninterest income in
the 2024 fourth quarter included swap fee income of $1.4 million,
up from only $21,000 in the 2024 third quarter, reflecting a higher
level of customer activity. During the 2024 fourth quarter, the
Company recognized a net gain of $1.0 million related to the sale
of its two branches in Virginia, which closed on October 1,
2024.
Noninterest expense. The Company continues to closely
manage expenses. Noninterest expense for the 2024 fourth quarter
was $77.6 million, down $3.7 million, or 5%, from $81.3 million in
the immediately preceding third quarter. Excluding notable
items(5), noninterest expense for the 2024 fourth quarter was $77.0
million, down 4% from $79.8 million for the 2024 third quarter. The
quarter-over-quarter decrease in noninterest expense was primarily
driven by lower earned interest credit expense, which decreased
$2.3 million, or 33%, from the immediately preceding third quarter
due to the Federal Funds target rate cuts and a lower average
balance of related deposits, as well as lower salaries and employee
benefits expense, which decreased $2.1 million, or 5%,
quarter-over-quarter to $42.0 million.
Tax rate. The effective tax rate for the 2024 fourth
quarter was 20.0%, compared with 24.7% in the immediately preceding
third quarter. The quarter-over-quarter change in the effective tax
rate reflected the impact of a solar tax credit investment that the
Company made during the fourth quarter of 2024. For the twelve
months ended December 31, 2024, the effective tax rate was 25.1%,
compared with 24.9% for the 2023 full year.
_____________________________________
(4)
PPNR, excluding notable items, is a
non-GAAP financial measure. Quantitative reconciliations of the
most directly comparable GAAP to non-GAAP financial measures are
provided in the accompanying financial information on Table Pages
10 to 12. Collectively, notable items comprise merger-related
expenses, restructuring-related costs and gains, which also
includes a net gain on the sale of branches in Virginia, and the
FDIC special assessment expense.
(5)
Noninterest expense, excluding notable
items, is a non-GAAP financial measure. Quantitative
reconciliations of the most directly comparable GAAP to non-GAAP
financial measures are provided in the accompanying financial
information on Table Pages 10 to 12.
Balance Sheet Summary
Cash and investment securities. At December 31, 2024,
cash and due from banks totaled $458.2 million, compared with
$680.9 million at September 30, 2024, and $1.93 billion at December
31, 2023. The year-over-year change primarily reflected the payoff
of the Company’s Bank Term Funding Program (“BTFP”) borrowings in
March and April of 2024. Investment securities totaled $2.08
billion at December 31, 2024, $2.18 billion at September 30, 2024,
and $2.41 billion at December 31, 2023.
Loans. At December 31, 2024, loans receivable, which
excludes loans held for sale, were stable quarter-over-quarter at
$13.62 billion. Compared with September 30, 2024, commercial and
industrial loans increased 2% quarter-over-quarter and residential
mortgage loans increased 3%, partially offset by a 1% decrease in
commercial real estate loans. 2024 fourth quarter average gross
loans increased 0.4% quarter-over-quarter, or 2% on an annualized
basis, from the 2024 third quarter.
The following table sets forth the loan portfolio composition at
December 31, 2024, September 30, 2024, and December 31, 2023:
(dollars in thousands) (unaudited)
12/31/2024
9/30/2024
12/31/2023
Balance
Percentage
Balance
Percentage
Balance
Percentage
Commercial real estate (“CRE”) loans
$
8,527,008
62.6
%
$
8,630,757
63.3
%
$
8,797,884
63.6
%
Commercial and industrial (“C&I”)
loans
3,967,596
29.1
%
3,901,368
28.6
%
4,135,044
29.8
%
Residential mortgage and other loans
1,123,668
8.2
%
1,085,863
7.9
%
920,691
6.6
%
Loans receivable
13,618,272
99.9
%
13,617,988
99.8
%
13,853,619
100.0
%
Loans held for sale
14,491
0.1
%
25,714
0.2
%
3,408
—
%
Gross loans
$
13,632,763
100.0
%
$
13,643,702
100.0
%
$
13,857,027
100.0
%
Deposits. Total deposits of $14.33 billion at December
31, 2024, decreased $402.0 million, or 3%, from $14.73 billion at
September 30, 2024. This decrease included $128.1 million of
deposits sold in connection with the Company’s sale of its Virginia
branches. In addition, the quarter-over-quarter decrease in
deposits reflected typical fourth quarter outflows of noninterest
bearing commercial deposits in the residential mortgage industry,
and intentional run-off of higher-cost deposits.
The following table sets forth the deposit composition at
December 31, 2024, September 30, 2024, and December 31, 2023:
(dollars in thousands) (unaudited)
12/31/2024
9/30/2024
12/31/2023
Balance
Percentage
Balance
Percentage
Balance
Percentage
Noninterest bearing demand deposits
$
3,377,950
23.6
%
$
3,722,985
25.3
%
$
3,914,967
26.5
%
Money market, interest bearing demand, and
savings deposits
5,175,735
36.1
%
5,013,305
34.0
%
4,872,029
33.0
%
Time deposits
5,773,804
40.3
%
5,993,208
40.7
%
5,966,757
40.5
%
Total deposits
$
14,327,489
100.0
%
$
14,729,498
100.0
%
$
14,753,753
100.0
%
Gross loan-to-deposit ratio
95.2
%
92.6
%
93.9
%
Borrowings. Federal Home Loan Bank and Federal Reserve
Bank borrowings totaled $239.0 million at December 31, 2024,
compared with $100.0 million at September 30, 2024, and $1.80
billion at December 31, 2023. The year-over-year change primarily
reflected the payoff of the Company’s BTFP borrowings in March and
April 2024.
Credit Quality and Allowance for Credit
Losses
Nonperforming assets. Nonperforming assets were $90.8
million, or 0.53% of total assets, at December 31, 2024, down 13%
from $103.8 million, or 0.60% of total assets, at September 30,
2024.
The following table sets forth the components of nonperforming
assets at December 31, 2024, September 30, 2024, and December 31,
2023:
(dollars in thousands) (unaudited)
12/31/2024
9/30/2024
12/31/2023
Loans on nonaccrual status (1)
$
90,564
$
103,602
$
45,204
Accruing delinquent loans past due 90 days
or more
229
226
261
Total nonperforming loans
90,793
103,828
45,465
Other real estate owned
—
—
63
Total nonperforming assets
$
90,793
$
103,828
$
45,528
Nonperforming assets/total assets
0.53
%
0.60
%
0.24
%
_____________________________________
(1)
Excludes delinquent SBA loans that are
guaranteed and currently in liquidation totaling $12.8 million,
$13.1 million and $11.4 million at December 31, 2024, September 30,
2024, and December 31, 2023, respectively.
Criticized loans. Criticized loans decreased $55.8
million, or 11%, to $450.0 million at December 31, 2024, down from
$505.7 million at September 30, 2024. The criticized loans to total
loans ratio improved to 3.30% at December 31, 2024, down from 3.71%
at September 30, 2024. The decrease reflected payoffs, workouts and
note sales of problem loans during the quarter.
Net charge offs and provision for credit losses. The
Company recorded net charge offs of $12.8 million in the 2024
fourth quarter, equivalent to 0.38%, annualized, of average loans.
This compares with net charge offs of $5.7 million, or 0.17%,
annualized, of average loans in the immediately preceding third
quarter. The quarter-over-quarter change in net charge offs
reflected the problem loan resolution activity in the fourth
quarter. The full-year 2024 net charge off ratio was 0.19%,
compared with 0.22% for the 2023 full year.
The following table sets forth net charge offs and annualized
net charge off ratios for the three months ended December 31, 2024,
September 30, 2024, and December 31, 2023, and the full years ended
December 31, 2024, and December 31, 2023:
For the Three Months
Ended
For the Twelve Months
Ended
(dollars in thousands) (unaudited)
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Net charge offs
$
12,843
$
5,749
$
1,815
$
26,567
$
32,358
Annualized net charge offs/average
loans
0.38
%
0.17
%
0.05
%
0.19
%
0.22
%
For the 2024 fourth quarter, the Company recorded a provision
for credit losses of $10.0 million. This compares with a provision
for credit losses of $3.3 million in the immediately preceding
third quarter. The quarter-over-quarter change in the provision for
credit losses primarily reflected net charge offs in the fourth
quarter of 2024. For the full year 2024, the Company recorded a
provision for credit losses of $17.3 million, compared with a
provision for credit losses of $31.6 million for the full year
2023.
Allowance for credit losses. The allowance for credit
losses totaled $150.5 million at December 31, 2024, compared with
$153.3 million at September 30, 2024. The allowance coverage ratio
was 1.11% of loans receivable at December 31, 2024, compared with
1.13% at September 30, 2024. The change in the allowance coverage
ratio was due to a decrease in quantitative and individually
evaluated loan reserves, which reflected, in part, the
quarter-over-quarter reduction in criticized loans, partially
offset by an increase in qualitative reserves.
The following table sets forth the allowance for credit losses
and the coverage ratios at December 31, 2024, September 30, 2024,
and December 31, 2023:
(dollars in thousands) (unaudited)
12/31/2024
9/30/2024
12/31/2023
Allowance for credit losses
$
150,527
$
153,270
$
158,694
Allowance for credit losses/loans
receivable
1.11
%
1.13
%
1.15
%
Capital
At December 31, 2024, the Company and the Bank continued to
exceed all regulatory capital requirements generally required to
meet the definition of a “well-capitalized” financial institution.
The following table sets forth the capital ratios for the Company
at December 31, 2024, September 30, 2024, and December 31,
2023:
(unaudited)
12/31/2024
9/30/2024
12/31/2023
Minimum Guideline for
“Well-Capitalized”
Common Equity Tier 1 Capital Ratio
13.06
%
13.07
%
12.28
%
6.50
%
Tier 1 Capital Ratio
13.79
%
13.79
%
12.96
%
8.00
%
Total Capital Ratio
14.78
%
14.82
%
13.92
%
10.00
%
Leverage Ratio
11.78
%
11.61
%
10.11
%
5.00
%
At December 31, 2024, total stockholders’ equity was $2.13
billion, or $17.68 per common share, compared with $2.17 billion,
or $17.97 per common share, at September 30, 2024. Tangible common
equity (“TCE”) per share(6) was $13.81 at December 31, 2024,
compared with $14.10 at September 30, 2024. The
quarter-over-quarter change in stockholders’ equity included a
$45.1 million increase in accumulated other comprehensive losses,
which was impacted by market interest rates. The change in
accumulated other comprehensive losses impacted book value and
tangible book value by $(0.37) per share during the fourth quarter
of 2024. The TCE ratio(6) was 10.05% at December 31, 2024, down 3
basis points from 10.08% at September 30, 2024, and up 119 basis
points from December 31, 2023.
The following table sets forth the TCE per share and the TCE
ratio at December 31, 2024, September 30, 2024, and December 31,
2023:
(unaudited)
12/31/2024
9/30/2024
12/31/2023
TCE per share
$
13.81
$
14.10
$
13.76
TCE ratio
10.05
%
10.08
%
8.86
%
_____________________________________
(6)
TCE per share and TCE ratio are non-GAAP
financial measures. Quantitative reconciliations of the most
directly comparable GAAP to non-GAAP financial measures are
provided in the accompanying financial information on Table Pages
10 through 12.
Investor Conference Call
The Company previously announced that it will host an investor
conference call on Monday, January 27, 2025, at 9:30 a.m. Pacific
Time / 12:30 p.m. Eastern Time to review unaudited financial
results for its fourth quarter ended December 31, 2024. Investors
and analysts are invited to access the conference call by dialing
866-235-9917 (domestic) or 412-902-4103 (international) and asking
for the “Hope Bancorp Call.” A presentation to accompany the
earnings call will be available at the Investor Relations section
of Hope Bancorp’s website at www.ir-hopebancorp.com. Other
interested parties are invited to listen to a live webcast of the
call available at the Investor Relations section of Hope Bancorp’s
website. After the live webcast, a replay will remain available at
the Investor Relations section of Hope Bancorp’s website for at
least one year. A telephonic replay of the call will be available
at 877-344-7529 (domestic) or 412-317-0088 (international) for one
week through February 3, 2025, replay access code 6066063.
Non-GAAP Financial Metrics
This news release and accompanying financial tables contain
certain non-GAAP financial measure disclosures, including net
income excluding notable items, earnings per share excluding
notable items, PPNR, PPNR excluding notable items, noninterest
expense excluding notable items, TCE per share, TCE ratio, ROA
excluding notable items, ROE excluding notable items, ROTCE, ROTCE
excluding notable items, and efficiency ratio excluding notable
items. Management believes these non-GAAP financial measures
provide meaningful supplemental information regarding the Company’s
operational performance and the Company’s capital levels and has
included these figures in response to market participant interest
in these financial metrics. Quantitative reconciliations of the
most directly comparable GAAP to non-GAAP financial measures are
provided in the accompanying financial information on Table Pages
10 through 12.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank
of Hope, the first and only super regional Korean American bank in
the United States with $17.05 billion in total assets as of
December 31, 2024. Headquartered in Los Angeles and serving a
multi-ethnic population of customers across the nation, the Bank
provides a full suite of commercial, corporate and consumer loans,
including commercial and commercial real estate lending, SBA
lending, residential mortgage and other consumer lending; deposit
and fee-based products and services; international trade financing;
and cash management services, foreign currency exchange solutions,
and interest rate derivative products, among others. Bank of Hope
operates 46 full-service branches in California, Washington, Texas,
Illinois, New York, New Jersey, Alabama, and Georgia. The Bank also
operates SBA loan production offices, commercial loan production
offices, and residential mortgage loan production offices in the
United States; and a representative office in Seoul, Korea. 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
www.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.
Additional Information About the Merger and Where to Find
It
In connection with the pending merger with Territorial Bancorp
Inc., Hope Bancorp, Inc. filed with the U.S. Securities and
Exchange Commission (the “SEC”) a Registration Statement on Form
S-4, which included a Proxy Statement/Prospectus and which was
declared effective by the SEC on August 20, 2024, as further
supplemented by Hope Bancorp on September 12, 2024. This earnings
release does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or
approval. Territorial Bancorp shareholders are encouraged to read
the Registration Statement and the Proxy Statement/Prospectus
regarding the merger and any other relevant documents filed with
the SEC, as well as any amendments or supplements to those
documents, because they contain important information about the
pending merger. Territorial Bancorp shareholders are able to obtain
a free copy of the Proxy Statement/Prospectus, as well as other
filings containing information about Hope Bancorp and Territorial
Bancorp at the SEC’s Internet site (www.sec.gov). Territorial
Bancorp shareholders are also able to obtain these documents, free
of charge, from Territorial Bancorp at
https://www.tsbhawaii.bank/tsb/investor-relations/.
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. Forward-looking
statements include, but are not limited to, statements preceded by,
followed by or that include the words “will,” “believes,”
“expects,” “anticipates,” “intends,” “plans,” “estimates” or
similar expressions. With respect to any such forward-looking
statements, Hope Bancorp claims the protection provided for in the
Private Securities Litigation Reform Act of 1995. These statements
involve risks and uncertainties. Hope Bancorp’s actual results,
performance or achievements may differ significantly from the
results, performance or achievements expressed or implied in any
forward-looking statements. The closing of the pending transaction
with Territorial Bancorp is subject to regulatory approvals and
other customary closing conditions. There is no assurance that such
conditions will be met or that the pending merger will be
consummated within the expected time frame, or at all. If the
transaction is consummated, factors that may cause actual outcomes
to differ from what is expressed or forecasted in these
forward-looking statements include, among things: difficulties and
delays in integrating Hope Bancorp and Territorial Bancorp and
achieving anticipated synergies, cost savings and other benefits
from the transaction; higher than anticipated transaction costs;
deposit attrition, operating costs, customer loss and business
disruption following the merger, including difficulties in
maintaining relationships with employees and customers, may be
greater than expected; and required governmental approvals of the
merger may not be obtained on its proposed terms and schedule, or
without regulatory constraints that may limit growth. Other risks
and uncertainties include, but are not limited to: possible renewed
deterioration in economic conditions in Hope Bancorp’s areas of
operation or elsewhere; interest rate risk associated with volatile
interest rates and related asset-liability matching risk; liquidity
risks; risk of significant non-earning assets, and net credit
losses that could occur, particularly in times of weak economic
conditions or times of rising interest rates; the failure of or
changes to assumptions and estimates underlying Hope Bancorp’s
allowances for credit losses; potential increases in deposit
insurance assessments and regulatory risks associated with current
and future regulations; the outcome of any legal proceedings that
may be instituted against Hope Bancorp; the risk that any
announcements relating to the pending transaction could have
adverse effects on the market price of the common stock of Hope
Bancorp; diversion of management’s attention from ongoing business
operations and opportunities; and risks from natural disasters. For
additional information concerning these and other risk factors, see
Hope Bancorp’s most recent Annual Report on Form 10-K. Hope Bancorp
does not undertake, and specifically disclaims any obligation, to
update any forward-looking statements to reflect the occurrence of
events or circumstances after the date of such statements except as
required by law.
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share data)
Assets:
12/31/2024
9/30/2024
% change
12/31/2023
% change
Cash and due from banks
$
458,199
$
680,857
(33
)%
$
1,928,967
(76
)%
Investment securities
2,075,628
2,177,301
(5
)%
2,408,971
(14
)%
Federal Home Loan Bank (“FHLB”) stock and
other investments
57,196
57,158
—
%
61,000
(6
)%
Gross loans, including loans held for
sale
13,632,763
13,643,702
—
%
13,857,027
(2
)%
Allowance for credit losses
(150,527
)
(153,270
)
(2
)%
(158,694
)
(5
)%
Accrued interest receivable
51,169
51,898
(1
)%
61,720
(17
)%
Premises and equipment, net
51,759
51,543
—
%
50,611
2
%
Goodwill and intangible assets
466,781
467,182
—
%
468,385
—
%
Other assets
411,040
377,818
9
%
453,535
(9
)%
Total assets
$
17,054,008
$
17,354,189
(2
)%
$
19,131,522
(11
)%
Liabilities:
Deposits
$
14,327,489
$
14,729,498
(3
)%
$
14,753,753
(3
)%
FHLB and Federal Reserve Bank (“FRB”)
borrowings
239,000
100,000
139
%
1,795,726
(87
)%
Subordinated debentures and convertible
notes, net
109,584
109,249
—
%
108,269
1
%
Accrued interest payable
93,784
107,017
(12
)%
168,174
(44
)%
Other liabilities
149,646
138,640
8
%
184,357
(19
)%
Total liabilities
$
14,919,503
$
15,184,404
(2
)%
$
17,010,279
(12
)%
Stockholders’ Equity:
Common stock, $0.001 par value
$
138
$
138
—
%
$
138
—
%
Additional paid-in capital
1,445,373
1,442,993
—
%
1,439,963
—
%
Retained earnings
1,181,533
1,174,100
1
%
1,150,547
3
%
Treasury stock, at cost
(264,667
)
(264,667
)
—
%
(264,667
)
—
%
Accumulated other comprehensive loss,
net
(227,872
)
(182,779
)
(25
)%
(204,738
)
(11
)%
Total stockholders’ equity
2,134,505
2,169,785
(2
)%
2,121,243
1
%
Total liabilities and stockholders’
equity
$
17,054,008
$
17,354,189
(2
)%
$
19,131,522
(11
)%
Common stock shares – authorized
300,000,000
300,000,000
150,000,000
Common stock shares – outstanding
120,755,658
120,737,908
120,126,786
Treasury stock shares
17,382,835
17,382,835
17,382,835
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
Three Months Ended
Twelve Months Ended
12/31/2024
9/30/2024
% change
12/31/2023
% change
12/31/2024
12/31/2023
% change
Interest and fees on loans
$
203,828
$
210,022
(3
)%
$
221,020
(8
)%
$
837,159
$
892,563
(6
)%
Interest on investment securities
16,930
16,741
1
%
18,398
(8
)%
68,549
66,063
4
%
Interest on cash and deposits at other
banks
4,694
7,507
(37
)%
29,029
(84
)%
44,668
87,361
(49
)%
Interest on other investments and FHLB
dividends
1,169
814
44
%
777
50
%
3,604
2,891
25
%
Total interest income
226,621
235,084
(4
)%
269,224
(16
)%
953,980
1,048,878
(9
)%
Interest on deposits
121,645
127,193
(4
)%
121,305
—
%
495,448
441,231
12
%
Interest on borrowings
2,841
3,082
(8
)%
22,003
(87
)%
30,681
81,786
(62
)%
Total interest expense
124,486
130,275
(4
)%
143,308
(13
)%
526,129
523,017
1
%
Net interest income before provision
102,135
104,809
(3
)%
125,916
(19
)%
427,851
525,861
(19
)%
Provision for credit losses
10,000
3,280
205
%
2,400
317
%
17,280
31,592
(45
)%
Net interest income after provision
92,135
101,529
(9
)%
123,516
(25
)%
410,571
494,269
(17
)%
Service fees on deposit accounts
2,809
2,651
6
%
2,505
12
%
10,728
9,466
13
%
Net gains on sales of SBA loans
3,063
2,722
13
%
—
100
%
7,765
4,097
90
%
Net gains (losses) on sales of securities
available for sale
837
(326
)
N/A
—
100
%
936
—
100
%
Net gain on branch sales
1,006
—
100
%
—
100
%
1,006
—
100
%
Other income and fees
8,166
6,792
20
%
6,775
21
%
26,642
32,014
(17
)%
Total noninterest income
15,881
11,839
34
%
9,280
71
%
47,077
45,577
3
%
Salaries and employee benefits
42,016
44,160
(5
)%
47,364
(11
)%
177,860
207,871
(14
)%
Occupancy
6,837
6,940
(1
)%
7,231
(5
)%
27,469
28,868
(5
)%
Furniture and equipment
5,436
5,341
2
%
5,302
3
%
21,592
21,378
1
%
Data processing and communications
2,961
3,112
(5
)%
2,976
(1
)%
12,060
11,606
4
%
FDIC assessment
2,684
2,200
22
%
3,141
(15
)%
10,813
13,296
(19
)%
FDIC special assessment
—
—
—
%
3,971
(100
)%
691
3,971
(83
)%
Earned interest credit
4,605
6,869
(33
)%
6,505
(29
)%
23,447
22,399
5
%
Restructuring-related (reversals)
costs
(152
)
197
N/A
11,076
N/A
1,023
11,576
(91
)%
Merger-related costs
735
1,236
(41
)%
—
100
%
4,604
—
100
%
Other noninterest expense
12,468
11,213
11
%
11,625
7
%
45,125
40,994
10
%
Total noninterest expense
77,590
81,268
(5
)%
99,191
(22
)%
324,684
361,959
(10
)%
Income before income taxes
30,426
32,100
(5
)%
33,605
(9
)%
132,964
177,887
(25
)%
Income tax provision
6,089
7,941
(23
)%
7,124
(15
)%
33,334
44,214
(25
)%
Net income
$
24,337
$
24,159
1
%
$
26,481
(8
)%
$
99,630
$
133,673
(25
)%
Earnings per common share – diluted
$
0.20
$
0.20
$
0.22
$
0.82
$
1.11
Weighted average shares outstanding –
diluted
121,401,285
121,159,977
120,761,112
121,108,594
120,393,257
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
For the Three Months
Ended
For the Twelve Months
Ended
Profitability measures
(annualized):
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Return on average assets (“ROA”)
0.57
%
0.56
%
0.54
%
0.56
%
0.67
%
ROA excluding notable items (1)
0.56
%
0.58
%
0.76
%
0.58
%
0.73
%
Return on average equity (“ROE”)
4.51
%
4.52
%
5.17
%
4.68
%
6.48
%
ROE excluding notable items (1)
4.46
%
4.71
%
7.25
%
4.85
%
7.02
%
Return on average tangible common equity
(“ROTCE”) (1)
5.76
%
5.78
%
6.71
%
5.99
%
8.39
%
ROTCE excluding notable items (1)
5.69
%
6.02
%
9.39
%
6.22
%
9.08
%
Net interest margin
2.50
%
2.55
%
2.70
%
2.55
%
2.81
%
Efficiency ratio (not annualized)
65.75
%
69.67
%
73.37
%
68.36
%
63.34
%
Efficiency ratio excluding notable items
(not annualized) (1)
65.81
%
68.44
%
62.24
%
67.18
%
60.62
%
(1) ROA excluding notable items, ROE excluding notable items,
ROTCE, ROTCE excluding notable items, and efficiency ratio
excluding notable items are non-GAAP financial measures.
Quantitative reconciliations of the most directly comparable GAAP
to non-GAAP financial measures are provided in the accompanying
financial information on Table Pages 10 through 12.
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
Three Months Ended
12/31/2024
9/30/2024
12/31/2023
Interest
Annualized
Interest
Annualized
Interest
Annualized
Average
Income/
Average
Average
Income/
Average
Average
Income/
Average
Balance
Expense
Yield/Cost
Balance
Expense
Yield/Cost
Balance
Expense
Yield/Cost
INTEREST EARNING ASSETS:
Loans, including loans held for sale
$
13,626,965
$
203,828
5.95
%
$
13,574,539
$
210,022
6.16
%
$
14,052,953
$
221,020
6.24
%
Investment securities
2,177,613
16,930
3.09
%
2,182,847
16,741
3.05
%
2,283,613
18,398
3.20
%
Interest earning cash and deposits at
other banks
416,467
4,694
4.48
%
570,754
7,507
5.23
%
2,142,147
29,029
5.38
%
FHLB stock and other investments
49,388
1,169
9.42
%
48,956
814
6.61
%
47,587
777
6.48
%
Total interest earning assets
$
16,270,433
$
226,621
5.54
%
$
16,377,096
$
235,084
5.71
%
$
18,526,300
$
269,224
5.77
%
INTEREST BEARING LIABILITIES:
Deposits:
Money market, interest bearing demand and
savings
$
5,187,715
$
50,510
3.87
%
$
4,963,727
$
50,707
4.06
%
$
4,821,222
$
45,662
3.76
%
Time deposits
5,856,439
71,135
4.83
%
6,053,924
76,486
5.03
%
6,327,191
75,643
4.74
%
Total interest bearing deposits
11,044,154
121,645
4.38
%
11,017,651
127,193
4.59
%
11,148,413
121,305
4.32
%
FHLB and FRB borrowings
113,533
248
0.87
%
120,326
329
1.09
%
1,795,740
19,224
4.25
%
Subordinated debentures and convertible
notes
105,482
2,593
9.62
%
105,152
2,753
10.24
%
104,198
2,779
10.44
%
Total interest bearing liabilities
$
11,263,169
$
124,486
4.40
%
$
11,243,129
$
130,275
4.61
%
$
13,048,351
$
143,308
4.36
%
Noninterest bearing demand deposits
3,546,613
3,704,088
4,113,680
Total funding liabilities/cost of
funds
$
14,809,782
3.34
%
$
14,947,217
3.47
%
$
17,162,031
3.31
%
Net interest income/net interest
spread
$
102,135
1.14
%
$
104,809
1.10
%
$
125,916
1.41
%
Net interest margin
2.50
%
2.55
%
2.70
%
Cost of deposits:
Noninterest bearing demand deposits
$
3,546,613
$
—
—
%
$
3,704,088
$
—
—
%
$
4,113,680
$
—
—
%
Interest bearing deposits
11,044,154
121,645
4.38
%
11,017,651
127,193
4.59
%
11,148,413
121,305
4.32
%
Total deposits
$
14,590,767
$
121,645
3.32
%
$
14,721,739
$
127,193
3.44
%
$
15,262,093
$
121,305
3.15
%
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
Twelve Months Ended
12/31/2024
12/31/2023
Interest
Annualized
Interest
Annualized
Average
Income/
Average
Average
Income/
Average
Balance
Expense
Yield/Cost
Balance
Expense
Yield/Cost
INTEREST EARNING ASSETS:
Loans, including loans held for sale
$
13,634,728
$
837,159
6.14
%
$
14,732,166
$
892,563
6.06
%
Investment securities
2,213,068
68,549
3.10
%
2,262,840
66,063
2.92
%
Interest earning cash and deposits at
other banks
856,768
44,668
5.21
%
1,685,462
87,361
5.18
%
FHLB stock and other investments
48,738
3,604
7.39
%
47,249
2,891
6.12
%
Total interest earning assets
$
16,753,302
$
953,980
5.69
%
$
18,727,717
$
1,048,878
5.60
%
INTEREST BEARING LIABILITIES:
Deposits:
Money market, interest bearing demand and
savings
$
5,043,411
$
200,070
3.97
%
$
4,858,919
$
161,751
3.33
%
Time deposits
5,954,272
295,378
4.96
%
6,409,056
279,480
4.36
%
Total interest bearing deposits
10,997,683
495,448
4.51
%
11,267,975
441,231
3.92
%
FHLB and FRB borrowings
531,869
19,860
3.73
%
1,618,292
69,365
4.29
%
Subordinated debentures and convertible
notes
104,989
10,821
10.14
%
181,125
12,421
6.76
%
Total interest bearing liabilities
$
11,634,541
$
526,129
4.52
%
$
13,067,392
$
523,017
4.00
%
Noninterest bearing demand deposits
3,679,947
4,362,043
Total funding liabilities/cost of
funds
$
15,314,488
3.44
%
$
17,429,435
3.00
%
Net interest income/net interest
spread
$
427,851
1.17
%
$
525,861
1.60
%
Net interest margin
2.55
%
2.81
%
Cost of deposits:
Noninterest bearing demand deposits
$
3,679,947
$
—
—
%
$
4,362,043
$
—
—
%
Interest bearing deposits
10,997,683
495,448
4.51
%
11,267,975
441,231
3.92
%
Total deposits
$
14,677,630
$
495,448
3.38
%
$
15,630,018
$
441,231
2.82
%
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
Three Months Ended
Twelve Months Ended
AVERAGE BALANCES:
12/31/2024
9/30/2024
% change
12/31/2023
% change
12/31/2024
12/31/2023
% change
Gross loans, including loans held for
sale
$
13,626,965
$
13,574,539
—
%
$
14,052,953
(3
)%
$
13,634,728
$
14,732,166
(7
)%
Investment securities
2,177,613
2,182,847
—
%
2,283,613
(5
)%
2,213,068
2,262,840
(2
)%
Interest earning cash and deposits at
other banks
416,467
570,754
(27
)%
2,142,147
(81
)%
856,768
1,685,462
(49
)%
Interest earning assets
16,270,433
16,377,096
(1
)%
18,526,300
(12
)%
16,753,302
18,727,717
(11
)%
Goodwill and intangible assets
467,021
467,419
—
%
468,622
—
%
467,620
469,298
—
%
Total assets
17,228,881
17,369,169
(1
)%
19,600,942
(12
)%
17,746,408
19,806,163
(10
)%
Noninterest bearing demand deposits
3,546,613
3,704,088
(4
)%
4,113,680
(14
)%
3,679,947
4,362,043
(16
)%
Interest bearing deposits
11,044,154
11,017,651
—
%
11,148,413
(1
)%
10,997,683
11,267,975
(2
)%
Total deposits
14,590,767
14,721,739
(1
)%
15,262,093
(4
)%
14,677,630
15,630,018
(6
)%
Interest bearing liabilities
11,263,169
11,243,129
—
%
13,048,351
(14
)%
11,634,541
13,067,392
(11
)%
Stockholders’ equity
2,156,858
2,139,861
1
%
2,048,335
5
%
2,130,140
2,061,665
3
%
LOAN PORTFOLIO COMPOSITION:
12/31/2024
9/30/2024
% change
12/31/2023
% change
Commercial real estate (“CRE”) loans
$
8,527,008
$
8,630,757
(1
)%
$
8,797,884
(3
)%
Commercial and industrial (“C&I”)
loans
3,967,596
3,901,368
2
%
4,135,044
(4
)%
Residential mortgage and other loans
1,123,668
1,085,863
3
%
920,691
22
%
Loans receivable
13,618,272
13,617,988
—
%
13,853,619
(2
)%
Loans held for sale
14,491
25,714
(44
)%
3,408
325
%
Gross loans
13,632,763
13,643,702
—
%
13,857,027
(2
)%
CRE LOANS BY PROPERTY TYPE:
12/31/2024
9/30/2024
% change
12/31/2023
% change
Multi-tenant retail
$
1,619,505
$
1,640,769
(1
)%
$
1,704,337
(5
)%
Industrial warehouses
1,264,703
1,244,891
2
%
1,226,780
3
%
Multifamily
1,208,494
1,204,734
—
%
1,226,384
(1
)%
Gas stations and car washes
1,027,502
1,021,537
1
%
1,030,888
—
%
Mixed-use facilities
771,695
826,045
(7
)%
870,664
(11
)%
Hotels/motels
769,635
800,707
(4
)%
796,267
(3
)%
Single-tenant retail
659,993
663,178
—
%
662,705
—
%
Office
394,431
396,131
—
%
401,821
(2
)%
All other
811,050
832,765
(3
)%
878,038
(8
)%
Total CRE loans
$
8,527,008
$
8,630,757
(1
)%
$
8,797,884
(3
)%
DEPOSIT COMPOSITION:
12/31/2024
9/30/2024
% change
12/31/2023
% change
Noninterest bearing demand deposits
$
3,377,950
$
3,722,985
(9
)%
$
3,914,967
(14
)%
Money market, interest bearing demand, and
savings
5,175,735
5,013,305
3
%
4,872,029
6
%
Time deposits
5,773,804
5,993,208
(4
)%
5,966,757
(3
)%
Total deposits
$
14,327,489
$
14,729,498
(3
)%
$
14,753,753
(3
)%
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
CAPITAL & CAPITAL RATIOS:
12/31/2024
9/30/2024
12/31/2023
Total stockholders’ equity
$
2,134,505
$
2,169,785
$
2,121,243
Total capital
$
2,150,810
$
2,143,477
$
2,120,157
Common equity tier 1 ratio
13.06
%
13.07
%
12.28
%
Tier 1 capital ratio
13.79
%
13.79
%
12.96
%
Total capital ratio
14.78
%
14.82
%
13.92
%
Leverage ratio
11.78
%
11.61
%
10.11
%
Total risk weighted assets
$
14,549,708
$
14,466,152
$
15,230,302
Book value per common share
$
17.68
$
17.97
$
17.66
Tangible common equity (“TCE”) per share
(1)
$
13.81
$
14.10
$
13.76
TCE ratio (1)
10.05
%
10.08
%
8.86
%
(1) TCE per share and TCE ratio are
non-GAAP financial measures. Quantitative reconciliations of the
most directly comparable GAAP to non-GAAP financial measures are
provided in the accompanying financial information on Table Page
10.
ALLOWANCE FOR CREDIT LOSSES
CHANGES:
Three Months Ended
Twelve Months Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
12/31/2024
12/31/2023
Balance at beginning of period
$
153,270
$
156,019
$
158,758
$
158,694
$
158,809
$
158,694
$
162,359
ASU 2022-02 day 1 adoption impact
—
—
—
—
—
—
(407
)
Provision for credit losses on loans
10,100
3,000
1,700
3,600
1,700
18,400
29,100
Recoveries
704
534
2,099
1,184
306
4,521
5,162
Charge offs
(13,547
)
(6,283
)
(6,538
)
(4,720
)
(2,121
)
(31,088
)
(37,520
)
Balance at end of period
$
150,527
$
153,270
$
156,019
$
158,758
$
158,694
$
150,527
$
158,694
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Allowance for unfunded loan
commitments
$
2,723
$
2,823
$
2,543
$
2,843
$
3,843
Three Months Ended
Twelve Months Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
12/31/2024
12/31/2023
Provision for credit losses on loans
$
10,100
$
3,000
$
1,700
$
3,600
$
1,700
$
18,400
$
29,100
Provision (credit) for unfunded loan
commitments
(100
)
280
(300
)
(1,000
)
700
(1,120
)
2,492
Provision for credit losses
$
10,000
$
3,280
$
1,400
$
2,600
$
2,400
$
17,280
$
31,592
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
Three Months Ended
Twelve Months Ended
NET LOAN CHARGE OFFS
(RECOVERIES):
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
12/31/2024
12/31/2023
CRE loans
$
156
$
372
$
514
$
(497
)
$
1,560
$
545
$
(338
)
C&I loans
12,607
5,287
3,900
4,072
138
25,866
32,388
Residential mortgage and other loans
80
90
25
(39
)
117
156
308
Net loan charge offs
$
12,843
$
5,749
$
4,439
$
3,536
$
1,815
$
26,567
$
32,358
Net charge offs/average loans
(annualized)
0.38
%
0.17
%
0.13
%
0.10
%
0.05
%
0.19
%
0.22
%
NONPERFORMING ASSETS:
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Loans on nonaccrual status (1)
$
90,564
$
103,602
$
67,003
$
59,526
$
45,204
Accruing delinquent loans past due 90 days
or more
229
226
273
47,290
261
Total nonperforming loans
90,793
103,828
67,276
106,816
45,465
Other real estate owned (“OREO”)
—
—
—
—
63
Total nonperforming assets
$
90,793
$
103,828
$
67,276
$
106,816
$
45,528
Nonperforming assets/total assets
0.53
%
0.60
%
0.39
%
0.59
%
0.24
%
Nonperforming loans/loans receivable
0.67
%
0.76
%
0.50
%
0.78
%
0.33
%
Nonaccrual loans/loans receivable
0.67
%
0.76
%
0.49
%
0.43
%
0.33
%
Allowance for credit losses/loans
receivable
1.11
%
1.13
%
1.15
%
1.16
%
1.15
%
Allowance for credit losses/nonperforming
loans
165.79
%
147.62
%
231.91
%
148.63
%
349.05
%
(1) Excludes delinquent SBA loans that are
guaranteed and currently in liquidation totaling $12.8 million,
$13.1 million, $11.2 million, $10.9 million, and $11.4 million, at
December 31, 2024, September 30, 2024, June 30, 2024, March 31,
2024, and December 31, 2023, respectively.
NONACCRUAL LOANS BY TYPE:
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
CRE loans
$
23,396
$
72,228
$
27,292
$
37,836
$
33,932
C&I loans
60,807
24,963
33,456
15,070
5,013
Residential mortgage and other loans
6,361
6,411
6,255
6,620
6,259
Total nonaccrual loans
$
90,564
$
103,602
$
67,003
$
59,526
$
45,204
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in
thousands)
ACCRUING DELINQUENT LOANS 30-89 DAYS
PAST DUE:
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
30 - 59 days past due
$
8,681
$
10,746
$
9,073
$
2,273
$
2,833
60 - 89 days past due
5,164
1,539
552
313
1,289
Total accruing delinquent loans 30-89 days
past due
$
13,845
$
12,285
$
9,625
$
2,586
$
4,122
ACCRUING DELINQUENT LOANS 30-89 DAYS
PAST DUE BY TYPE:
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
CRE loans
$
3,205
$
816
$
5,586
$
1,639
$
2,160
C&I loans
1,288
9,037
2,530
551
1,643
Residential mortgage and other loans
9,352
2,432
1,509
396
319
Total accruing delinquent loans 30-89 days
past due
$
13,845
$
12,285
$
9,625
$
2,586
$
4,122
CRITICIZED LOANS:
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Special mention loans
$
179,073
$
184,443
$
204,167
$
215,183
$
178,992
Classified loans
270,896
321,283
243,635
206,350
143,449
Total criticized loans
$
449,969
$
505,726
$
447,802
$
421,533
$
322,441
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
Reconciliation of GAAP financial
measures to non-GAAP financial measures
Management reviews select non-GAAP
financial measures in evaluating the Company’s and the Bank’s
financial performance and in response to market participant
interest. Reconciliations of the most directly comparable GAAP to
non-GAAP financial measures utilized by management are provided
below.
TANGIBLE COMMON EQUITY (“TCE”)
12/31/2024
9/30/2024
12/31/2023
Total stockholders’ equity
$
2,134,505
$
2,169,785
$
2,121,243
Less: Goodwill and core deposit intangible
assets, net
(466,781
)
(467,182
)
(468,385
)
TCE
$
1,667,724
$
1,702,603
$
1,652,858
Total assets
$
17,054,008
$
17,354,189
$
19,131,522
Less: Goodwill and core deposit intangible
assets, net
(466,781
)
(467,182
)
(468,385
)
Tangible assets
$
16,587,227
$
16,887,007
$
18,663,137
TCE ratio
10.05
%
10.08
%
8.86
%
Common shares outstanding
120,755,658
120,737,908
120,126,786
TCE per share
$
13.81
$
14.10
$
13.76
Three Months Ended
Twelve Months Ended
RETURN ON AVERAGE TANGIBLE COMMON
EQUITY (“ROTCE”)
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Average stockholders’ equity
$
2,156,858
$
2,139,861
$
2,048,335
$
2,130,140
$
2,061,665
Less: Average goodwill and core deposit
intangible assets, net
(467,021
)
(467,419
)
(468,622
)
(467,620
)
(469,298
)
Average TCE
$
1,689,837
$
1,672,442
$
1,579,713
$
1,662,520
$
1,592,367
Net income
$
24,337
$
24,159
$
26,481
$
99,630
$
133,673
ROTCE (annualized)
5.76
%
5.78
%
6.71
%
5.99
%
8.39
%
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
Three Months Ended
Twelve Months Ended
PRE-PROVISION NET REVENUE
(“PPNR”)
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Net interest income before provision for
credit losses
$
102,135
$
104,809
$
125,916
$
427,851
$
525,861
Noninterest income
15,881
11,839
9,280
47,077
45,577
Revenue
118,016
116,648
135,196
474,928
571,438
Less: Noninterest expense
77,590
81,268
99,191
324,684
361,959
PPNR
$
40,426
$
35,380
$
36,005
$
150,244
$
209,479
Notable items:
FDIC special assessment expense
—
—
3,971
691
3,971
Restructuring-related (gains) costs, net
(including gain on branch sale)
(1,158
)
197
11,076
17
11,576
Merger-related costs
735
1,236
—
4,604
—
Total notable items
(423
)
1,433
15,047
5,312
15,547
PPNR, excluding notable items
$
40,003
$
36,813
$
51,052
$
155,556
$
225,026
Three Months Ended
Twelve Months Ended
PROFITABILITY RATIOS EXCLUDING NOTABLE
ITEMS
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Net income
$
24,337
$
24,159
$
26,481
$
99,630
$
133,673
Notable items:
FDIC special assessment expense
—
—
3,971
691
3,971
Restructuring-related (gains) costs, net
(including gain on branch sale)
(1,158
)
197
11,076
17
11,576
Merger-related costs
735
1,236
—
4,604
—
Total notable items
(423
)
1,433
15,047
5,312
15,547
Less: tax provision
(125
)
421
4,427
1,562
4,574
Total notable items, net of tax
provision
(298
)
1,012
10,620
3,750
10,973
Net income excluding notable items
$
24,039
$
25,171
$
37,101
$
103,380
$
144,646
Diluted common shares
121,401,285
121,159,977
120,761,112
121,108,594
120,393,257
EPS excluding notable items
$
0.20
$
0.21
$
0.31
$
0.85
$
1.20
Average Assets
$
17,228,881
$
17,369,169
$
19,600,942
$
17,746,408
$
19,806,163
ROA excluding notable items
(annualized)
0.56
%
0.58
%
0.76
%
0.58
%
0.73
%
Average Equity
$
2,156,858
$
2,139,861
$
2,048,335
$
2,130,140
$
2,061,665
ROE excluding notable items
(annualized)
4.46
%
4.71
%
7.25
%
4.85
%
7.02
%
Average TCE
$
1,689,837
$
1,672,442
$
1,579,713
$
1,662,520
$
1,592,367
ROTCE excluding notable items
(annualized)
5.69
%
6.02
%
9.39
%
6.22
%
9.08
%
Hope Bancorp, Inc.
Selected Financial
Data
Unaudited (dollars in thousands,
except share and per share data)
Three Months Ended
Twelve Months Ended
EFFICIENCY RATIO EXCLUDING NOTABLE
ITEMS
12/31/2024
9/30/2024
12/31/2023
12/31/2024
12/31/2023
Noninterest expense
$
77,590
$
81,268
$
99,191
$
324,684
$
361,959
Less: notable items:
FDIC special assessment expense
—
—
(3,971
)
(691
)
(3,971
)
Restructuring-related reversals
(costs)
152
(197
)
(11,076
)
(1,023
)
(11,576
)
Merger-related costs
(735
)
(1,236
)
—
(4,604
)
—
Noninterest expense excluding notable
items
$
77,007
$
79,835
$
84,144
$
318,366
$
346,412
Revenue
$
118,016
$
116,648
$
135,196
$
474,928
$
571,438
Less: notable items:
Net gain on branch sale
(1,006
)
—
—
(1,006
)
—
Revenue excluding notable items
$
117,010
$
116,648
$
135,196
$
473,922
$
571,438
Efficiency ratio excluding notable
items
65.81
%
68.44
%
62.24
%
67.18
%
60.62
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250127686534/en/
Julianna Balicka EVP & Chief Financial Officer 213-235-3235
julianna.balicka@bankofhope.com
Angie Yang SVP, Director of Investor Relations & Corporate
Communications 213-251-2219 angie.yang@bankofhope.com
Hope Bancorp (NASDAQ:HOPE)
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Hope Bancorp (NASDAQ:HOPE)
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From Jan 2024 to Jan 2025
