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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
October 28, 2024
Date of Report (Date of earliest event reported)
| | |
| HOPE BANCORP INC |
| (Exact name of registrant as specified in its charter) |
| | | | | | | | | | | | | | |
| Delaware | 000-50245 | 95-4849715 |
| (State of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
3200 Wilshire Boulevard, Suite 1400
Los Angeles, California 90010
(Address of principal executives offices, including zip code)
(213) 639-1700
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
| Common Stock | , | par value $0.001 per share | HOPE | NASDAQ Global Select Market |
| (Title of class) | (Trading Symbol) | (Name of exchange on which registered) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 28, 2024, Hope Bancorp, Inc. (“HOPE” or the “Company”) issued a news release concerning its results of operations and financial condition for the third quarter and nine months ended and as of September 30, 2024. A copy of the October 28, 2024, news release is furnished as Exhibit 99.1 and incorporated herein by reference.
Item 7.01. Regulation FD Disclosure
The Company previously announced that it will host an investor conference call on Monday, October 28, 2024, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its third quarter ended and as of September 30, 2024. A presentation to accompany the conference call (“Earnings Presentation”), which contains certain historical and forward-looking information relating to the Company, has been made available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. A copy of the Earnings Presentation is furnished as Exhibit 99.2 and incorporated herein by reference.
The information furnished under Item 2.02, Item 7.01 and exhibits 99.1, and 99.2 under Item 9.01 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to liabilities under that Section, nor shall they be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be set forth as a specific reference in such filing.
Item 8.01 Other Events.
On October 28, 2024, the Company issued a news release announcing that its Board of Directors declared a quarterly cash dividend of $0.14 per common share. The cash dividend is payable on or about November 21, 2024, to all stockholders of record as of the close of business on November 7, 2024. A copy of the October 28, 2024, news release is furnished as Exhibit 99.3 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| | | | | | | | |
| Exhibit No. | | Description of Exhibit |
| | |
| 99.1 | | |
| 99.2 | | |
| 99.3 | | |
| 104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | HOPE BANCORP, INC. |
| | | |
| Date: October 28, 2024 | By: | /s/ Kevin S. Kim | |
| | Kevin S. Kim | |
| | Chairman, President and Chief Executive Officer |
News Release
HOPE BANCORP REPORTS 2024 THIRD QUARTER FINANCIAL RESULTS
LOS ANGELES – October 28, 2024 – Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its third quarter and nine months ended September 30, 2024. For the three months ended September 30, 2024, net income totaled $24.2 million, or $0.20 per diluted common share. This compares with net income of $25.3 million, or $0.21 per diluted common share, in the second quarter of 2024. Excluding notable items(1), net income for the 2024 third quarter was $25.2 million, or $0.21 per diluted common share.
“We are pleased to see a higher level of productivity from our banking teams, along with the continued success of our core deposit gathering initiatives. Quarter-over-quarter, customer deposit growth was a robust 11% annualized, supporting loan growth and offsetting a planned reduction in brokered deposits,” said Kevin S. Kim, Chairman, President and Chief Executive Officer. “In the 2024 third quarter, loans receivable grew 2% on an annualized basis, marking a turn-around in our loan growth trend. Additionally, more than two-thirds of the net growth in noninterest bearing demand deposits this quarter came from small business accounts.
“Regulatory risk-based capital ratios for Hope Bancorp are the highest since our merger with Wilshire Bancorp in 2016. As of September 30, 2024, our total capital ratio was a strong 14.8%, and our tangible equity ratio was a robust 10.1%,” continued Kim.
“The success of our balance sheet management has resulted in high levels of capital, ample liquidity, and a lower loan-to-deposit ratio, positioning us well to increase our market share, add new client relationships, and generate profitable growth as economic conditions and loan demand improve in the coming year,” said Kim.
“We are excited about our pending merger with Territorial Bancorp Inc. (NASDAQ: TBNK), the stock holding company of Territorial Savings Bank. We believe this compelling combination will strengthen the Territorial franchise for the long term, providing many advantages for customers and employees as part of a larger organization with greater resources, enhanced technology platforms, and an expanded array of banking products and services.”
Operating Results for the 2024 Third Quarter
Net interest income and net interest margin. Net interest income before provision for credit losses for the 2024 third quarter totaled $104.8 million. This compares with net interest income before provision for credit losses of $105.9 million in the immediately preceding second quarter. Interest income was $235.1 million in the third quarter of 2024, up from $232.6 million in the second quarter of 2024. Growth in interest income was offset by increased interest expense, which was $130.3 million in the third quarter, compared with $126.7 million in the second quarter. The quarter-over-quarter increase in interest expense reflects the change in average total deposit costs, which increased five basis points to 3.44% for the 2024 third quarter, up from 3.39% in the immediately preceding second quarter. End-of-period total deposit costs decreased nine basis points to 3.34% as of September 30, 2024, from 3.43% as of June 30, 2024, indicating an inflection point in deposit costs by deposit type.
Net interest margin for the 2024 third quarter was 2.55%, down seven basis points from 2.62% in the 2024 second quarter. The quarter-over-quarter change in net interest margin reflects a higher balance and cost of average interest bearing deposits, as well as the change in average loan yields, partially offset by a higher balance and yield earned on average interest earning cash and deposits at other banks, and a lower balance and lower rate paid on average borrowings.
(1) Net income, excluding merger-related expenses, restructuring-related charges and the FDIC special assessment (also referred to collectively as the “notable items”), is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 and 11.
Noninterest income. Noninterest income for the 2024 third quarter increased to $11.8 million, up 7% from $11.1 million in the immediately preceding second quarter. The Company recorded net gains on the sale of SBA loans of $2.7 million in the 2024 third quarter, compared with $2.0 million in the immediately preceding second quarter. In the third quarter of 2024, the Company sold $41.4 million of SBA loans, compared with $29.8 million in the second quarter of 2024. Other noninterest income in the 2024 third quarter included a $403,000 gain from bank owned life insurance, as well as a $326,000 net loss on sales of securities available for sale, as the Company repositioned a portion of its lower-yielding investment securities.
Noninterest expense. Noninterest expense for the 2024 third quarter was $81.3 million, compared with $81.0 million in the immediately preceding second quarter, and down 6% year-over-year from $86.8 million in the 2023 third quarter. Excluding notable items(2), which were primarily merger-related costs, noninterest expense for the 2024 third quarter was $79.8 million, compared with $79.1 million for the 2024 second quarter, and down 8% year-over-year from $86.3 million for the 2023 third quarter. Salaries and employee benefits expense for the 2024 third quarter was $44.2 million, up by $53,000 and essentially stable compared with $44.1 million in the 2024 second quarter. Year-over-year, salaries and employee benefits expense decreased 13% from $51.0 million in the 2023 third quarter, reflecting the benefits of a restructuring executed in the fourth quarter of 2023.
Tax rate. The year-to-date effective tax rate for the nine months ended September 30, 2024, was 26.6%, compared with the year-to-date effective tax rate of 25.7% for the same period of 2023. For the full year 2024, the Company expects the effective tax rate to be approximately 26%.
Balance Sheet Summary
Cash and investment securities. At September 30, 2024, cash and cash equivalents totaled $680.9 million, compared with $654.0 million at June 30, 2024, and $2.50 billion at September 30, 2023. The year-over-year change in cash and cash equivalents primarily reflected the payoff of the Company’s Bank Term Funding Program (“BTFP”) borrowings in March and April of 2024. Investment securities totaled $2.18 billion at September 30, 2024, $2.17 billion at June 30, 2024, and $2.26 billion at September 30, 2023.
Loans. Gross loans of $13.64 billion at September 30, 2024, were up $8.4 million from $13.64 billion at June 30, 2024. Loans receivable, which excludes loans held for sale, grew $51.0 million quarter-over-quarter, or up 2% annualized. Quarter-over-quarter, commercial and industrial loans and residential mortgage loans increased, partially offset by a decrease in commercial real estate loans. The Company sold $41.4 million of SBA loans in the third quarter of 2024.
The following table sets forth the loan portfolio composition at September 30, 2024, June 30, 2024, and September 30, 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in thousands) (unaudited) | 9/30/2024 | | 6/30/2024 | | 9/30/2023 |
| Balance | | Percentage | | Balance | | Percentage | | Balance | | Percentage |
| Commercial real estate (“CRE”) loans | $ | 8,630,757 | | | 63.3 | % | | $ | 8,679,515 | | | 63.6 | % | | $ | 8,972,886 | | | 62.6 | % |
| Commercial and industrial (“C&I”) loans | 3,901,368 | | | 28.6 | % | | 3,854,284 | | | 28.3 | % | | 4,450,341 | | | 31.1 | % |
| Residential mortgage and other loans | 1,085,863 | | | 7.9 | % | | 1,033,203 | | | 7.6 | % | | 882,966 | | | 6.2 | % |
| Loans receivable | 13,617,988 | | | 99.8 | % | | 13,567,002 | | | 99.5 | % | | 14,306,193 | | | 99.9 | % |
| Loans held for sale | 25,714 | | | 0.2 | % | | 68,316 | | | 0.5 | % | | 19,502 | | | 0.1 | % |
| Gross loans | $ | 13,643,702 | | | 100.0 | % | | $ | 13,635,318 | | | 100.0 | % | | $ | 14,325,695 | | | 100.0 | % |
(2) Notable items included $1.2 million of merger-related expenses and $197,000 of restructuring-related costs for the 2024 third quarter, $1.6 million of merger-related expenses, $576,000 of restructuring-related costs, and a $309,000 reversal of an accrual related to the FDIC special assessment for the 2024 second quarter, and $500,000 of restructuring related costs for the 2023 third quarter, all on a pre-tax basis. 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 and 11.
Deposits. Total deposits amounted to $14.73 billion at September 30, 2024, up $18.0 million from $14.71 billion at June 30, 2024. During the 2024 third quarter, robust growth in customer deposits of 11% annualized more than offset a planned reduction of brokered deposits. Noninterest bearing demand deposits grew $51.8 million quarter-over-quarter to $3.72 billion at September 30, 2024, and money market and interest bearing demand deposits increased $105.4 million quarter-over-quarter to $5.01 billion. During the third quarter of 2024, the Company reduced brokered deposits by $351.5 million from June 30, 2024.
The following table sets forth the deposit composition at September 30, 2024, June 30, 2024, and September 30, 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in thousands) (unaudited) | 9/30/2024 | | 6/30/2024 | | 9/30/2023 |
| Balance | | Percentage | | Balance | | Percentage | | Balance | | Percentage |
| Noninterest bearing demand deposits | $ | 3,722,985 | | | 25.3 | % | | $ | 3,671,192 | | | 24.9 | % | | $ | 4,249,788 | | | 27.0 | % |
| Money market, interest bearing demand, and savings deposits | 5,013,305 | | | 34.0 | % | | 4,907,860 | | | 33.4 | % | | 4,855,683 | | | 30.9 | % |
| Time deposits | 5,993,208 | | | 40.7 | % | | 6,132,419 | | | 41.7 | % | | 6,634,388 | | | 42.1 | % |
| Total deposits | $ | 14,729,498 | | | 100.0 | % | | $ | 14,711,471 | | | 100.0 | % | | $ | 15,739,859 | | | 100.0 | % |
| | | | | | | | | | | |
| Gross loan-to-deposit ratio | | | 92.6 | % | | | | 92.7 | % | | | | 91.0 | % |
On October 1, 2024, the Bank completed a branch purchase and assumption agreement whereby PromiseOne Bank acquired the deposits and other assets associated with Bank of Hope’s Annandale and Centreville branches in Virginia. As of transaction close, deposits at these two branches totaled approximately $129.4 million.
Borrowings. Federal Home Loan Bank and Federal Reserve Bank borrowings decreased to $100.0 million at September 30, 2024, down from $170.0 million at June 30, 2024, and $1.80 billion at September 30, 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 $103.8 million, or 0.60% of total assets, at September 30, 2024, compared with $67.3 million, or 0.39% of total assets, at June 30, 2024, and $61.7 million, or 0.31% of total assets, at September 30, 2023. The increase was due to the migration of one relationship that was placed on nonaccrual status as of September 30, 2024, following loan maturities. This relationship consists of three commercial real estate loans that are well-secured by properties in primary locations with minimal to no loss expected.
The following table sets forth the components of nonperforming assets at September 30, 2024, June 30, 2024, and September 30, 2023:
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| (dollars in thousands) (unaudited) | 9/30/2024 | | 6/30/2024 | | 9/30/2023 |
Loans on nonaccrual status (1) | $ | 103,602 | | | $ | 67,003 | | | $ | 39,081 | |
Accruing delinquent loans past due 90 days or more | | 226 | | | | 273 | | | | 21,579 | |
| | | | | | | | |
| Total nonperforming loans | | 103,828 | | | | 67,276 | | | | 60,660 | |
| Other real estate owned | | — | | | | — | | | | 1,043 | |
| Total nonperforming assets | $ | 103,828 | | | $ | 67,276 | | | $ | 61,703 | |
| | | | | | | | |
| Nonperforming assets/total assets | | 0.60 | % | | | 0.39 | % | | | 0.31 | % |
_____________________________________
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $13.1 million, $11.2 million and $12.1 million at September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
Net charge offs and provision for credit losses. The Company recorded net charge offs of $5.7 million in the 2024 third quarter, equivalent to 0.17%, annualized, of average loans. This compares with net charge offs of $4.4 million, or 0.13%, annualized, of average loans in the immediately preceding second quarter. Net charge off levels continue to be moderate.
The following table sets forth net charge offs and annualized net charge off ratios for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023:
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| For the Three Months Ended | | | |
| (dollars in thousands) (unaudited) | 9/30/2024 | | 6/30/2024 | | 9/30/2023 | | | | | | |
| Net charge offs | $ | 5,749 | | | $ | 4,439 | | | $ | 30,987 | | | | | | | |
| Annualized net charge offs/average loans | | 0.17 | % | | | 0.13 | % | | | 0.85 | % | | | | | | |
For the 2024 third quarter, the Company recorded a provision for credit losses of $3.3 million. This compares with a provision for credit losses of $1.4 million in the immediately preceding second quarter.
Allowance for credit losses. The allowance for credit losses totaled $153.3 million at September 30, 2024, compared with $156.0 million at June 30, 2024. The allowance coverage ratio was 1.13% of loans receivable at September 30, 2024, compared with 1.15% at June 30, 2024. The change in allowance coverage reflects the positive impact from improved macroeconomic variables, notably the CRE price index, in the Current Expected Credit Loss (“CECL”) model, partially offset by increased qualitative and individually evaluated loan reserves.
The following table sets forth the allowance for credit losses and the coverage ratios at September 30, 2024, June 30, 2024, and September 30, 2023:
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| (dollars in thousands) (unaudited) | 9/30/2024 | | 6/30/2024 | | 9/30/2023 |
| Allowance for credit losses | $ | 153,270 | | | $ | 156,019 | | | $ | 158,809 | |
| Allowance for credit losses/loans receivable | | 1.13 | % | | | 1.15 | % | | | 1.11 | % |
Capital
The Company’s capital ratios are strong and all regulatory risk-based capital ratios expanded quarter-over-quarter and year-over-year. At September 30, 2024, the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. The following table sets forth the capital ratios for the Company at September 30, 2024, June 30, 2024, and September 30, 2023:
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(unaudited) | 9/30/2024 | | 6/30/2024 | | 9/30/2023 | | Minimum Guideline for “Well-Capitalized” |
| Common Equity Tier 1 Capital Ratio | 13.06% | | 12.70% | | 11.67% | | 6.50% |
| Tier 1 Capital Ratio | 13.78% | | 13.40% | | 12.32% | | 8.00% |
| Total Capital Ratio | 14.80% | | 14.41% | | 13.23% | | 10.00% |
| Leverage Ratio | 11.61% | | 11.61% | | 9.83% | | 5.00% |
At September 30, 2024, total stockholders’ equity was $2.17 billion, or $17.97 per common share, compared with $2.11 billion, or $17.49 per common share, at June 30, 2024. Tangible common equity (“TCE”) per share(4) was $14.10 at September 30, 2024, compared with $13.61 at June 30, 2024, and the TCE ratio(3) was 10.08% at September 30, 2024, up 36 basis points from 9.72% at June 30, 2024.
(3) 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 and 11.
The following table sets forth the TCE per share and the TCE ratio at September 30, 2024, June 30, 2024, and September 30, 2023:
| | | | | | | | | | | | | | | | | |
| (unaudited) | 9/30/2024 | | 6/30/2024 | | 9/30/2023 |
| TCE per share | $14.10 | | $13.61 | | $13.01 |
| TCE ratio | 10.08% | | 9.72% | | 7.96% |
Investor Conference Call
The Company previously announced that it will host an investor conference call on Monday, October 28, 2024, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review unaudited financial results for its third quarter ended September 30, 2024. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for at least one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through November 4, 2024, replay access code 10193704.
Non-GAAP Financial Metrics
This news release and accompanying financial tables contain certain non-GAAP financial measure disclosures, including net income excluding notable items, earnings per share excluding notable items, noninterest expense excluding notable items, TCE per share, TCE ratio, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, 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 and 11.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the first and only super regional Korean American bank in the United States with $17.35 billion in total assets as of September 30, 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 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, and 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 will contain important information about the pending merger. Territorial Bancorp shareholders will be able to obtain a free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Hope Bancorp and Territorial Bancorp at the SEC’s Internet site (www.sec.gov). Territorial Bancorp shareholders will also be able to obtain these documents, free of charge, from Territorial Bancorp at https://www.tsbhawaii.bank/tsb/investor-relations/.
Participants in Solicitation
Hope Bancorp, Inc., Territorial Bancorp and certain of their directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the merger. Information concerning Hope Bancorp’s directors and executive officers is set forth in the Proxy Statement, dated April 12, 2024 (as amended and supplemented), for its 2024 annual meeting of stockholders as filed with the SEC on Schedule 14A. Information concerning Territorial Bancorp’s participants is set forth in the Proxy Statement, dated April 16, 2024, for Territorial Bancorp’s 2024 annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the interests of those participants in the solicitation of proxies in respect of the merger may be obtained by reading the Registration Statement and Proxy Statement/Prospectus filed with the SEC.
Forward-Looking Statements
Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, ease of integration and diversification of franchise in connection with the pending merger with Territorial Bancorp. 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 is subject to regulatory approvals, the approval of Territorial Bancorp shareholders, and other customary closing conditions. There is no assurance that such conditions will be met or that the 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 further deterioration in economic conditions in Hope Bancorp’s areas of operation or elsewhere; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying Hope Bancorp’s allowances for credit losses; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp; the risk that any announcements relating to the pending transaction could have adverse effects on the market price of the common stock of Hope Bancorp; and diversion of management’s attention from ongoing business operations and opportunities. For additional information concerning these and other risk factors, see Hope Bancorp’s most recent Annual Report on Form 10-K. Hope Bancorp does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
Contacts:
| | | | | | | | |
Julianna Balicka | | Angie Yang |
| EVP & Chief Financial Officer | | SVP, Director of Investor Relations & Corporate Communications |
213-235-3235 | | 213-251-2219 |
julianna.balicka@bankofhope.com | | angie.yang@bankofhope.com |
# # #
(tables follow)
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets: | 9/30/2024 | | 6/30/2024 | | % change | | | | | | 9/30/2023 | | % change |
| Cash and due from banks | $ | 680,857 | | | $ | 654,044 | | | 4.1 | % | | | | | | $ | 2,500,323 | | | (72.8) | % |
| Investment securities | 2,177,301 | | | 2,172,859 | | | 0.2 | % | | | | | | 2,260,837 | | | (3.7) | % |
| Federal Home Loan Bank (“FHLB”) stock and other investments | 57,158 | | | 61,528 | | | (7.1) | % | | | | | | 60,433 | | | (5.4) | % |
| | | | | | | | | | | | | |
| Gross loans, including loans held for sale | 13,643,702 | | | 13,635,318 | | | 0.1 | % | | | | | | 14,325,695 | | | (4.8) | % |
| Allowance for credit losses | (153,270) | | | (156,019) | | | (1.8) | % | | | | | | (158,809) | | | (3.5) | % |
| | | | | | | | | | | | | |
| Accrued interest receivable | 51,898 | | | 57,645 | | | (10.0) | % | | | | | | 60,665 | | | (14.5) | % |
| Premises and equipment, net | 51,543 | | | 50,919 | | | 1.2 | % | | | | | | 51,764 | | | (0.4) | % |
| Goodwill and intangible assets | 467,182 | | | 467,583 | | | (0.1) | % | | | | | | 468,832 | | | (0.4) | % |
| Other assets | 377,818 | | | 431,214 | | | (12.4) | % | | | | | | 506,624 | | | (25.4) | % |
| Total assets | $ | 17,354,189 | | | $ | 17,375,091 | | | (0.1) | % | | | | | | $ | 20,076,364 | | | (13.6) | % |
| | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | |
| Deposits | $ | 14,729,498 | | | $ | 14,711,471 | | | 0.1 | % | | | | | | $ | 15,739,859 | | | (6.4) | % |
| FHLB and Federal Reserve Bank (“FRB”) borrowings | 100,000 | | | 170,000 | | | (41.2) | % | | | | | | 1,795,726 | | | (94.4) | % |
| Subordinated debentures and convertible notes, net | 109,249 | | | 108,918 | | | 0.3 | % | | | | | | 107,949 | | | 1.2 | % |
| Accrued interest payable | 107,017 | | | 86,779 | | | 23.3 | % | | | | | | 166,831 | | | (35.9) | % |
| Other liabilities | 138,640 | | | 186,641 | | | (25.7) | % | | | | | | 235,575 | | | (41.1) | % |
| Total liabilities | $ | 15,184,404 | | | $ | 15,263,809 | | | (0.5) | % | | | | | | $ | 18,045,940 | | | (15.9) | % |
| | | | | | | | | | | | | |
| Stockholders’ Equity: | | | | | | | | | | | | | |
| Common stock, $0.001 par value | $ | 138 | | | $ | 138 | | | — | % | | | | | | $ | 137 | | | 0.7 | % |
| Additional paid-in capital | 1,442,993 | | | 1,440,963 | | | 0.1 | % | | | | | | 1,436,769 | | | 0.4 | % |
| Retained earnings | 1,174,100 | | | 1,167,978 | | | 0.5 | % | | | | | | 1,140,870 | | | 2.9 | % |
| Treasury stock, at cost | (264,667) | | | (264,667) | | | — | % | | | | | | (264,667) | | | — | % |
| Accumulated other comprehensive loss, net | (182,779) | | | (233,130) | | | 21.6 | % | | | | | | (282,685) | | | 35.3 | % |
| Total stockholders’ equity | 2,169,785 | | | 2,111,282 | | | 2.8 | % | | | | | | 2,030,424 | | | 6.9 | % |
| Total liabilities and stockholders’ equity | $ | 17,354,189 | | | $ | 17,375,091 | | | (0.1) | % | | | | | | $ | 20,076,364 | | | (13.6) | % |
| | | | | | | | | | | | | |
| Common stock shares – authorized | 300,000,000 | | | 300,000,000 | | | | | | | | | 150,000,000 | | | |
| Common stock shares – outstanding | 120,737,908 | | | 120,731,342 | | | | | | | | | 120,026,220 | | | |
| 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 | | Nine Months Ended |
| 9/30/2024 | | 6/30/2024 | | % change | | 9/30/2023 | | % change | | 9/30/2024 | | 9/30/2023 | | % change |
| | | | | | | | | | | | | | | |
| Interest and fees on loans | $ | 210,022 | | | $ | 209,683 | | | — | % | | $ | 229,937 | | | (9) | % | | $ | 633,331 | | | $ | 671,543 | | | (6) | % |
| Interest on investment securities | 16,741 | | | 16,829 | | | (1) | % | | 17,006 | | | (2) | % | | 51,619 | | | 47,665 | | | 8 | % |
| Interest on cash and deposits at other banks | 7,507 | | | 5,284 | | | 42 | % | | 28,115 | | | (73) | % | | 39,974 | | | 58,332 | | | (31) | % |
| Interest on other investments and FHLB dividends | 814 | | | 805 | | | 1 | % | | 735 | | | 11 | % | | 2,435 | | | 2,114 | | | 15 | % |
| Total interest income | 235,084 | | | 232,601 | | | 1 | % | | 275,793 | | | (15) | % | | 727,359 | | | 779,654 | | | (7) | % |
| | | | | | | | | | | | | | | |
| Interest on deposits | 127,193 | | | 122,577 | | | 4 | % | | 117,854 | | | 8 | % | | 373,803 | | | 319,926 | | | 17 | % |
| Interest on borrowings | 3,082 | | | 4,164 | | | (26) | % | | 22,561 | | | (86) | % | | 27,840 | | | 59,783 | | | (53) | % |
| Total interest expense | 130,275 | | | 126,741 | | | 3 | % | | 140,415 | | | (7) | % | | 401,643 | | | 379,709 | | | 6 | % |
| | | | | | | | | | | | | | | |
| Net interest income before provision | 104,809 | | | 105,860 | | | (1) | % | | 135,378 | | | (23) | % | | 325,716 | | | 399,945 | | | (19) | % |
| Provision for credit losses | 3,280 | | | 1,400 | | | 134 | % | | 16,862 | | | (81) | % | | 7,280 | | | 29,192 | | | (75) | % |
| Net interest income after provision | 101,529 | | | 104,460 | | | (3) | % | | 118,516 | | | (14) | % | | 318,436 | | | 370,753 | | | (14) | % |
| | | | | | | | | | | | | | | |
| Service fees on deposit accounts | 2,651 | | | 2,681 | | | (1) | % | | 2,415 | | | 10 | % | | 7,919 | | | 6,961 | | | 14 | % |
| Net gains on sales of SBA loans | 2,722 | | | 1,980 | | | 37 | % | | — | | | 100 | % | | 4,702 | | | 4,097 | | | 15 | % |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Net (losses) gains on sales of securities available for sale | (326) | | | 425 | | | N/A | | — | | | 100 | % | | 99 | | | — | | | 100 | % |
| Other income and fees | 6,792 | | | 5,985 | | | 13 | % | | 5,890 | | | 15 | % | | 18,476 | | | 25,239 | | | (27) | % |
| Total noninterest income | 11,839 | | | 11,071 | | | 7 | % | | 8,305 | | | 43 | % | | 31,196 | | | 36,297 | | | (14) | % |
| | | | | | | | | | | | | | | |
| Salaries and employee benefits | 44,160 | | | 44,107 | | | — | % | | 51,033 | | | (13) | % | | 135,844 | | | 160,507 | | | (15) | % |
| Occupancy | 6,940 | | | 6,906 | | | — | % | | 7,149 | | | (3) | % | | 20,632 | | | 21,637 | | | (5) | % |
| Furniture and equipment | 5,341 | | | 5,475 | | | (2) | % | | 5,625 | | | (5) | % | | 16,156 | | | 16,076 | | | — | % |
| Data processing and communications | 3,112 | | | 2,997 | | | 4 | % | | 2,891 | | | 8 | % | | 9,099 | | | 8,630 | | | 5 | % |
| FDIC assessment | 2,200 | | | 3,003 | | | (27) | % | | 3,683 | | | (40) | % | | 8,129 | | | 10,155 | | | (20) | % |
| FDIC special assessment | — | | | (309) | | | (100) | % | | — | | | — | % | | 691 | | | — | | | 100 | % |
| Earned interest credit | 6,869 | | | 6,139 | | | 12 | % | | 6,377 | | | 8 | % | | 18,842 | | | 15,894 | | | 19 | % |
| Restructuring-related costs | 197 | | | 576 | | | (66) | % | | 500 | | | (61) | % | | 1,175 | | | 500 | | | 135 | % |
| Merger-related costs | 1,236 | | | 1,589 | | | (22) | % | | — | | | 100 | % | | 3,869 | | | — | | | 100 | % |
| Other noninterest expense | 11,213 | | | 10,504 | | | 7 | % | | 9,553 | | | 17 | % | | 32,657 | | | 29,369 | | | 11 | % |
| Total noninterest expense | 81,268 | | | 80,987 | | | — | % | | 86,811 | | | (6) | % | | 247,094 | | | 262,768 | | | (6) | % |
| Income before income taxes | 32,100 | | | 34,544 | | | (7) | % | | 40,010 | | | (20) | % | | 102,538 | | | 144,282 | | | (29) | % |
| Income tax provision | 7,941 | | | 9,274 | | | (14) | % | | 9,961 | | | (20) | % | | 27,245 | | | 37,090 | | | (27) | % |
| Net income | $ | 24,159 | | | $ | 25,270 | | | (4) | % | | $ | 30,049 | | | (20) | % | | $ | 75,293 | | | $ | 107,192 | | | (30) | % |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Earnings per common share – diluted | $ | 0.20 | | | $ | 0.21 | | | | | $ | 0.25 | | | | | $ | 0.62 | | | $ | 0.89 | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Weighted average shares outstanding – diluted | 121,159,977 | | | 120,939,429 | | | | | 120,374,618 | | | | | 121,027,793 | | | 120,249,952 | | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended |
| Profitability measures (annualized): | 9/30/2024 | | 6/30/2024 | | 9/30/2023 | | 9/30/2024 | | 9/30/2023 |
| Return on average assets (“ROA”) | 0.56 | % | | 0.59 | % | | 0.60 | % | | 0.56 | % | | 0.72 | % |
ROA excluding notable items (1) | 0.58 | % | | 0.62 | % | | 0.61 | % | | 0.59 | % | | 0.72 | % |
| Return on average equity (“ROE”) | 4.52 | % | | 4.82 | % | | 5.78 | % | | 4.73 | % | | 6.92 | % |
ROE excluding notable items (1) | 4.71 | % | | 5.07 | % | | 5.85 | % | | 4.99 | % | | 6.94 | % |
Return on average tangible common equity (“ROTCE”) (1) | 5.78 | % | | 6.20 | % | | 7.47 | % | | 6.07 | % | | 8.95 | % |
ROTCE excluding notable items (1) | 6.02 | % | | 6.53 | % | | 7.55 | % | | 6.40 | % | | 8.98 | % |
| Net interest margin | 2.55 | % | | 2.62 | % | | 2.83 | % | | 2.57 | % | | 2.84 | % |
| Efficiency ratio (not annualized) | 69.67 | % | | 69.26 | % | | 60.42 | % | | 69.23 | % | | 60.23 | % |
Efficiency ratio excluding notable items (not annualized) (1) | 68.44 | % | | 67.67 | % | | 60.07 | % | | 67.62 | % | | 60.12 | % |
| | | | | | | | | |
(1) ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 and 11. |
|
| | | | | | | | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
| 9/30/2024 | | 6/30/2024 | | 9/30/2023 |
| | | Interest | | Annualized | | | | Interest | | Annualized | | | | Interest | | Annualized |
| Average | | Income/ | | Average | | Average | | Income/ | | Average | | Average | | Income/ | | Average |
| Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost |
| INTEREST EARNING ASSETS: | | | | | | | | | | | | | | | | | |
| Loans, including loans held for sale | $ | 13,574,539 | | | $ | 210,022 | | | 6.16 | % | | $ | 13,591,936 | | | $ | 209,683 | | | 6.20 | % | | $ | 14,550,106 | | | $ | 229,937 | | | 6.27 | % |
| Investment securities | 2,182,847 | | | 16,741 | | | 3.05 | % | | 2,175,379 | | | 16,829 | | | 3.11 | % | | 2,275,133 | | | 17,006 | | | 2.97 | % |
| Interest earning cash and deposits at other banks | 570,754 | | | 7,507 | | | 5.23 | % | | 428,062 | | | 5,284 | | | 4.96 | % | | 2,106,469 | | | 28,115 | | | 5.30 | % |
| FHLB stock and other investments | 48,956 | | | 814 | | | 6.61 | % | | 48,463 | | | 805 | | | 6.68 | % | | 47,316 | | | 735 | | | 6.16 | % |
| Total interest earning assets | $ | 16,377,096 | | | $ | 235,084 | | | 5.71 | % | | $ | 16,243,840 | | | $ | 232,601 | | | 5.76 | % | | $ | 18,979,024 | | | $ | 275,793 | | | 5.77 | % |
| | | | | | | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | |
| Money market, interest bearing demand and savings | $ | 4,963,727 | | | $ | 50,707 | | | 4.06 | % | | $ | 4,948,708 | | | $ | 48,708 | | | 3.96 | % | | $ | 4,533,430 | | | $ | 38,814 | | | 3.40 | % |
| Time deposits | 6,053,924 | | | 76,486 | | | 5.03 | % | | 5,921,201 | | | 73,869 | | | 5.02 | % | | 6,862,038 | | | 79,040 | | | 4.57 | % |
| Total interest bearing deposits | 11,017,651 | | | 127,193 | | | 4.59 | % | | 10,869,909 | | | 122,577 | | | 4.54 | % | | 11,395,468 | | | 117,854 | | | 4.10 | % |
| FHLB and FRB borrowings | 120,326 | | | 329 | | | 1.09 | % | | 219,402 | | | 1,430 | | | 2.62 | % | | 1,809,322 | | | 19,821 | | | 4.35 | % |
| Subordinated debentures and convertible notes | 105,152 | | | 2,753 | | | 10.24 | % | | 104,822 | | | 2,734 | | | 10.32 | % | | 103,873 | | | 2,740 | | | 10.32 | % |
| Total interest bearing liabilities | $ | 11,243,129 | | | $ | 130,275 | | | 4.61 | % | | $ | 11,194,133 | | | $ | 126,741 | | | 4.55 | % | | $ | 13,308,663 | | | $ | 140,415 | | | 4.19 | % |
| Noninterest bearing demand deposits | 3,704,088 | | | | | | | 3,666,416 | | | | | | | 4,312,117 | | | | | |
| Total funding liabilities/cost of funds | $ | 14,947,217 | | | | | 3.47 | % | | $ | 14,860,549 | | | | | 3.43 | % | | $ | 17,620,780 | | | | | 3.16 | % |
| Net interest income/net interest spread | | | $ | 104,809 | | | 1.10 | % | | | | $ | 105,860 | | | 1.21 | % | | | | $ | 135,378 | | | 1.58 | % |
| Net interest margin | | | | | 2.55 | % | | | | | | 2.62 | % | | | | | | 2.83 | % |
| | | | | | | | | | | | | | | | | |
| Cost of deposits: | | | | | | | | | | | | | | | | | |
| Noninterest bearing demand deposits | $ | 3,704,088 | | | $ | — | | | — | % | | $ | 3,666,416 | | | $ | — | | | — | % | | $ | 4,312,117 | | | $ | — | | | — | % |
| Interest bearing deposits | 11,017,651 | | | 127,193 | | | 4.59 | % | | 10,869,909 | | | 122,577 | | | 4.54 | % | | 11,395,468 | | | 117,854 | | | 4.10 | % |
| Total deposits | $ | 14,721,739 | | | $ | 127,193 | | | 3.44 | % | | $ | 14,536,325 | | | $ | 122,577 | | | 3.39 | % | | $ | 15,707,585 | | | $ | 117,854 | | | 2.98 | % |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Nine Months Ended | | | | | | |
| 9/30/2024 | | 9/30/2023 | | |
| | | Interest | | Annualized | | | | Interest | | Annualized | | | | | | |
| Average | | Income/ | | Average | | Average | | Income/ | | Average | | | | | | |
| Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost | | | | | | |
| INTEREST EARNING ASSETS: | | | | | | | | | | | | | | | | | |
| Loans, including loans held for sale | $ | 13,637,335 | | | $ | 633,331 | | | 6.20 | % | | $ | 14,961,058 | | | $ | 671,543 | | | 6.00 | % | | | | | | |
| Investment securities | 2,224,972 | | | 51,619 | | | 3.10 | % | | 2,255,839 | | | 47,665 | | | 2.83 | % | | | | | | |
| Interest earning cash and deposits at other banks | 1,004,606 | | | 39,974 | | | 5.32 | % | | 1,531,561 | | | 58,332 | | | 5.09 | % | | | | | | |
| FHLB stock and other investments | 48,520 | | | 2,435 | | | 6.70 | % | | 47,135 | | | 2,114 | | | 6.00 | % | | | | | | |
| Total interest earning assets | $ | 16,915,433 | | | $ | 727,359 | | | 5.74 | % | | $ | 18,795,593 | | | $ | 779,654 | | | 5.55 | % | | | | | | |
| | | | | | | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | |
| Money market, interest bearing demand and savings | $ | 4,994,958 | | | $ | 149,560 | | | 4.00 | % | | $ | 4,871,624 | | | $ | 116,090 | | | 3.19 | % | | | | | | |
| Time deposits | 5,987,121 | | | 224,243 | | | 5.00 | % | | 6,436,645 | | | 203,836 | | | 4.23 | % | | | | | | |
| Total interest bearing deposits | 10,982,079 | | | 373,803 | | | 4.55 | % | | 11,308,269 | | | 319,926 | | | 3.78 | % | | | | | | |
| FHLB and FRB borrowings | 672,332 | | | 19,612 | | | 3.90 | % | | 1,558,493 | | | 50,141 | | | 4.30 | % | | | | | | |
| Subordinated debentures and convertible notes | 104,824 | | | 8,228 | | | 10.31 | % | | 207,050 | | | 9,642 | | | 6.14 | % | | | | | | |
| Total interest bearing liabilities | $ | 11,759,235 | | | $ | 401,643 | | | 4.56 | % | | $ | 13,073,812 | | | $ | 379,709 | | | 3.88 | % | | | | | | |
| Noninterest bearing demand deposits | 3,724,716 | | | | | | | 4,445,740 | | | | | | | | | | | |
| Total funding liabilities/cost of funds | $ | 15,483,951 | | | | | 3.46 | % | | $ | 17,519,552 | | | | | 2.90 | % | | | | | | |
| Net interest income/net interest spread | | | $ | 325,716 | | | 1.18 | % | | | | $ | 399,945 | | | 1.67 | % | | | | | | |
| Net interest margin | | | | | 2.57 | % | | | | | | 2.84 | % | | | | | | |
| | | | | | | | | | | | | | | | | |
| Cost of deposits: | | | | | | | | | | | | | | | | | |
| Noninterest bearing demand deposits | $ | 3,724,716 | | | $ | — | | | — | % | | $ | 4,445,740 | | | $ | — | | | — | % | | | | | | |
| Interest bearing deposits | 10,982,079 | | | 373,803 | | | 4.55 | % | | 11,308,269 | | | 319,926 | | | 3.78 | % | | | | | | |
| Total deposits | $ | 14,706,795 | | | $ | 373,803 | | | 3.40 | % | | $ | 15,754,009 | | | $ | 319,926 | | | 2.72 | % | | | | | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| AVERAGE BALANCES: | 9/30/2024 | | 6/30/2024 | | % change | | 9/30/2023 | | % change | | 9/30/2024 | | 9/30/2023 | | % change |
| Gross loans, including loans held for sale | $ | 13,574,539 | | | $ | 13,591,936 | | | — | % | | $ | 14,550,106 | | | (7) | % | | $ | 13,637,335 | | | $ | 14,961,058 | | | (9) | % |
| Investment securities | 2,182,847 | | | 2,175,379 | | | — | % | | 2,275,133 | | | (4) | % | | 2,224,972 | | | 2,255,839 | | | (1) | % |
| Interest earning cash and deposits at other banks | 570,754 | | | 428,062 | | | 33 | % | | 2,106,469 | | | (73) | % | | 1,004,606 | | | 1,531,561 | | | (34) | % |
| Interest earning assets | 16,377,096 | | | 16,243,840 | | | 1 | % | | 18,979,024 | | | (14) | % | | 16,915,433 | | | 18,795,593 | | | (10) | % |
| Goodwill and intangible assets | 467,419 | | | 467,822 | | | — | % | | 469,079 | | | — | % | | 467,822 | | | 469,525 | | | — | % |
| Total assets | 17,369,169 | | | 17,256,638 | | | 1 | % | | 20,059,304 | | | (13) | % | | 17,920,176 | | | 19,875,322 | | | (10) | % |
| | | | | | | | | | | | | | | |
| Noninterest bearing demand deposits | 3,704,088 | | | 3,666,416 | | | 1 | % | | 4,312,117 | | | (14) | % | | 3,724,716 | | | 4,445,740 | | | (16) | % |
| Interest bearing deposits | 11,017,651 | | | 10,869,909 | | | 1 | % | | 11,395,468 | | | (3) | % | | 10,982,079 | | | 11,308,269 | | | (3) | % |
| Total deposits | 14,721,739 | | | 14,536,325 | | | 1 | % | | 15,707,585 | | | (6) | % | | 14,706,795 | | | 15,754,009 | | | (7) | % |
| Interest bearing liabilities | 11,243,129 | | | 11,194,133 | | | — | % | | 13,308,663 | | | (16) | % | | 11,759,235 | | | 13,073,812 | | | (10) | % |
| Stockholders’ equity | 2,139,861 | | | 2,097,108 | | | 2 | % | | 2,079,092 | | | 3 | % | | 2,121,169 | | | 2,066,157 | | | 3 | % |
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| LOAN PORTFOLIO COMPOSITION: | 9/30/2024 | | 6/30/2024 | | % change | | 9/30/2023 | | % change | | | | | | |
| Commercial real estate (“CRE”) loans | $ | 8,630,757 | | | $ | 8,679,515 | | | (1) | % | | $ | 8,972,886 | | | (4) | % | | | | | | |
| Commercial and industrial (“C&I”) loans | 3,901,368 | | | 3,854,284 | | | 1 | % | | 4,450,341 | | | (12) | % | | | | | | |
| Residential mortgage and other loans | 1,085,863 | | | 1,033,203 | | | 5 | % | | 882,966 | | | 23 | % | | | | | | |
| Loans receivable | 13,617,988 | | | 13,567,002 | | | — | % | | 14,306,193 | | | (5) | % | | | | | | |
| Loans held for sale | 25,714 | | | 68,316 | | | (62) | % | | 19,502 | | | 32 | % | | | | | | |
| Gross loans | 13,643,702 | | | 13,635,318 | | | — | % | | 14,325,695 | | | (5) | % | | | | | | |
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| CRE LOANS BY PROPERTY TYPE: | 9/30/2024 | | 6/30/2024 | | % change | | 9/30/2023 | | % change | | | | | | |
| Multi-tenant retail | $ | 1,640,769 | | | $ | 1,659,083 | | | (1) | % | | $ | 1,745,430 | | | (6) | % | | | | | | |
| Industrial warehouses | 1,244,891 | | | 1,249,255 | | | — | % | | 1,254,643 | | | (1) | % | | | | | | |
| Multifamily | 1,204,734 | | | 1,199,215 | | | — | % | | 1,234,934 | | | (2) | % | | | | | | |
| Gas stations and car washes | 1,021,537 | | | 1,007,680 | | | 1 | % | | 1,037,621 | | | (2) | % | | | | | | |
| Mixed-use facilities | 826,045 | | | 844,993 | | | (2) | % | | 813,571 | | | 2 | % | | | | | | |
| Hotels/motels | 800,707 | | | 795,253 | | | 1 | % | | 826,732 | | | (3) | % | | | | | | |
| Single-tenant retail | 663,178 | | | 655,540 | | | 1 | % | | 671,921 | | | (1) | % | | | | | | |
| Office | 396,131 | | | 403,861 | | | (2) | % | | 454,695 | | | (13) | % | | | | | | |
| All other | 832,765 | | | 864,635 | | | (4) | % | | 933,339 | | | (11) | % | | | | | | |
| Total CRE loans | $ | 8,630,757 | | | $ | 8,679,515 | | | (1) | % | | $ | 8,972,886 | | | (4) | % | | | | | | |
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| DEPOSIT COMPOSITION: | 9/30/2024 | | 6/30/2024 | | % change | | 9/30/2023 | | % change | | | | | | |
| Noninterest bearing demand deposits | $ | 3,722,985 | | | $ | 3,671,192 | | | 1 | % | | $ | 4,249,788 | | | (12) | % | | | | | | |
| Money market, interest bearing demand, and savings | 5,013,305 | | | 4,907,860 | | | 2 | % | | 4,855,683 | | | 3 | % | | | | | | |
| Time deposits | 5,993,208 | | | 6,132,419 | | | (2) | % | | 6,634,388 | | | (10) | % | | | | | | |
| Total deposits | $ | 14,729,498 | | | $ | 14,711,471 | | | — | % | | $ | 15,739,859 | | | (6) | % | | | | | | |
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Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
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| CAPITAL & CAPITAL RATIOS: | 9/30/2024 | | 6/30/2024 | | 9/30/2023 | | | | | | | | |
| Total stockholders’ equity | $ | 2,169,785 | | | $ | 2,111,282 | | | $ | 2,030,424 | | | | | | | | | |
| Total capital | $ | 2,143,477 | | | $ | 2,137,513 | | | $ | 2,105,754 | | | | | | | | | |
| Common equity tier 1 ratio | 13.06 | % | | 12.70 | % | | 11.67 | % | | | | | | | | |
| Tier 1 capital ratio | 13.78 | % | | 13.40 | % | | 12.32 | % | | | | | | | | |
| Total capital ratio | 14.80 | % | | 14.41 | % | | 13.23 | % | | | | | | | | |
| Leverage ratio | 11.61 | % | | 11.61 | % | | 9.83 | % | | | | | | | | |
| Total risk weighted assets | $ | 14,478,900 | | | $ | 14,828,905 | | | $ | 15,912,792 | | | | | | | | | |
| Book value per common share | $ | 17.97 | | | $ | 17.49 | | | $ | 16.92 | | | | | | | | | |
Tangible common equity (“TCE”) per share (1) | $ | 14.10 | | | $ | 13.61 | | | $ | 13.01 | | | | | | | | | |
TCE ratio (1) | 10.08 | % | | 9.72 | % | | 7.96 | % | | | | | | | | |
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(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. |
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| ALLOWANCE FOR CREDIT LOSSES CHANGES: | Three Months Ended | | Nine Months Ended |
| 9/30/2024 | | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 | | 9/30/2024 | | 9/30/2023 |
| Balance at beginning of period | $ | 156,019 | | | $ | 158,758 | | | $ | 158,694 | | | $ | 158,809 | | | $ | 172,996 | | | $ | 158,694 | | | $ | 162,359 | |
| ASU 2022-02 day 1 adoption impact | — | | | — | | | — | | | — | | | — | | | — | | | (407) | |
| Provision for credit losses on loans | 3,000 | | | 1,700 | | | 3,600 | | | 1,700 | | | 16,800 | | | 8,300 | | | 27,400 | |
| Recoveries | 534 | | | 2,099 | | | 1,184 | | | 306 | | | 2,938 | | | 3,817 | | | 4,856 | |
| Charge offs | (6,283) | | | (6,538) | | | (4,720) | | | (2,121) | | | (33,925) | | | (17,541) | | | (35,399) | |
| Balance at end of period | $ | 153,270 | | | $ | 156,019 | | | $ | 158,758 | | | $ | 158,694 | | | $ | 158,809 | | | $ | 153,270 | | | $ | 158,809 | |
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| 9/30/2024 | | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 | | | | |
| Allowance for unfunded loan commitments | $ | 2,823 | | | $ | 2,543 | | | $ | 2,843 | | | $ | 3,843 | | | $ | 3,143 | | | | | |
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| Three Months Ended | | Nine Months Ended |
| 9/30/2024 | | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 | | 9/30/2024 | | 9/30/2023 |
| Provision for credit losses on loans | $ | 3,000 | | | $ | 1,700 | | | $ | 3,600 | | | $ | 1,700 | | | $ | 16,800 | | | $ | 8,300 | | | $ | 27,400 | |
| Provision (credit) for unfunded loan commitments | 280 | | | (300) | | | (1,000) | | | 700 | | | 62 | | | (1,020) | | | 1,792 | |
| Provision for credit losses | $ | 3,280 | | | $ | 1,400 | | | $ | 2,600 | | | $ | 2,400 | | | $ | 16,862 | | | $ | 7,280 | | | $ | 29,192 | |
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Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
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| Three Months Ended | | Nine Months Ended |
| NET LOAN CHARGE OFFS (RECOVERIES): | 9/30/2024 | | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 | | 9/30/2024 | | 9/30/2023 |
| CRE loans | $ | 372 | | | $ | 514 | | | $ | (497) | | | $ | 1,560 | | | $ | (2,227) | | | $ | 389 | | | $ | (1,898) | |
| C&I loans | 5,287 | | | 3,900 | | | 4,072 | | | 138 | | | 33,145 | | | 13,259 | | | 32,250 | |
| Residential mortgage and other loans | 90 | | | 25 | | | (39) | | | 117 | | | 69 | | | 76 | | | 191 | |
| Net loan charge offs | $ | 5,749 | | | $ | 4,439 | | | $ | 3,536 | | | $ | 1,815 | | | $ | 30,987 | | | $ | 13,724 | | | $ | 30,543 | |
| Net charge offs/average loans (annualized) | 0.17 | % | | 0.13 | % | | 0.10 | % | | 0.05 | % | | 0.85 | % | | 0.13 | % | | 0.27 | % |
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| NONPERFORMING ASSETS: | 9/30/2024 | | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 | | | | |
Loans on nonaccrual status (1) | $ | 103,602 | | | $ | 67,003 | | | $ | 59,526 | | | $ | 45,204 | | | $ | 39,081 | | | | | |
| Accruing delinquent loans past due 90 days or more | 226 | | | 273 | | | 47,290 | | | 261 | | | 21,579 | | | | | |
| Total nonperforming loans | 103,828 | | | 67,276 | | | 106,816 | | | 45,465 | | | 60,660 | | | | | |
| Other real estate owned (“OREO”) | — | | | — | | | — | | | 63 | | | 1,043 | | | | | |
| Total nonperforming assets | $ | 103,828 | | | $ | 67,276 | | | $ | 106,816 | | | $ | 45,528 | | | $ | 61,703 | | | | | |
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| Nonperforming assets/total assets | 0.60 | % | | 0.39 | % | | 0.59 | % | | 0.24 | % | | 0.31 | % | | | | |
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| Nonperforming loans/loans receivable | 0.76 | % | | 0.50 | % | | 0.78 | % | | 0.33 | % | | 0.42 | % | | | | |
| Nonaccrual loans/loans receivable | 0.76 | % | | 0.49 | % | | 0.43 | % | | 0.33 | % | | 0.27 | % | | | | |
| Allowance for credit losses/loans receivable | 1.13 | % | | 1.15 | % | | 1.16 | % | | 1.15 | % | | 1.11 | % | | | | |
| Allowance for credit losses/nonperforming loans | 147.62 | % | | 231.91 | % | | 148.63 | % | | 349.05 | % | | 261.80 | % | | | | |
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(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $13.1 million, $11.2 million, $10.9 million, $11.4 million, and $12.1 million, at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively. | | | | |
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| NONACCRUAL LOANS BY TYPE: | 9/30/2024 | | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 | | | | |
| CRE loans | $ | 72,228 | | | $ | 27,292 | | | $ | 37,836 | | | $ | 33,932 | | | $ | 26,687 | | | | | |
| C&I loans | 24,963 | | | 33,456 | | | 15,070 | | | 5,013 | | | 4,234 | | | | | |
| Residential mortgage and other loans | 6,411 | | | 6,255 | | | 6,620 | | | 6,259 | | | 8,160 | | | | | |
| Total nonaccrual loans | $ | 103,602 | | | $ | 67,003 | | | $ | 59,526 | | | $ | 45,204 | | | $ | 39,081 | | | | | |
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Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
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| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE: | 9/30/2024 | | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 |
| 30 - 59 days past due | $ | 10,746 | | | $ | 9,073 | | | $ | 2,273 | | | $ | 2,833 | | | $ | 2,906 | |
| 60 - 89 days past due | 1,539 | | | 552 | | | 313 | | | 1,289 | | | 506 | |
| Total accruing delinquent loans 30-89 days past due | $ | 12,285 | | | $ | 9,625 | | | $ | 2,586 | | | $ | 4,122 | | | $ | 3,412 | |
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| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE: | 9/30/2024 | | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 |
| CRE loans | $ | 816 | | | $ | 5,586 | | | $ | 1,639 | | | $ | 2,160 | | | $ | 611 | |
| C&I loans | 9,037 | | | 2,530 | | | 551 | | | 1,643 | | | 1,168 | |
| Residential mortgage and other loans | 2,432 | | | 1,509 | | | 396 | | | 319 | | | 1,633 | |
| Total accruing delinquent loans 30-89 days past due | $ | 12,285 | | | $ | 9,625 | | | $ | 2,586 | | | $ | 4,122 | | | $ | 3,412 | |
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| CRITICIZED LOANS: | 9/30/2024 | | 6/30/2024 | | 3/31/2024 | | 12/31/2023 | | 9/30/2023 |
| Special mention loans | $ | 184,443 | | | $ | 204,167 | | | $ | 215,183 | | | $ | 178,992 | | | $ | 186,600 | |
| Substandard loans | 314,880 | | | 243,635 | | | 206,350 | | | 143,449 | | | 174,161 | |
| Doubtful/loss | 6,403 | | | — | | | — | | | — | | | — | |
| Total criticized loans | $ | 505,726 | | | $ | 447,802 | | | $ | 421,533 | | | $ | 322,441 | | | $ | 360,761 | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
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| Reconciliation of GAAP financial measures to non-GAAP financial measures |
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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. |
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| TANGIBLE COMMON EQUITY (“TCE”) | 9/30/2024 | | 6/30/2024 | | 9/30/2023 | | | | |
| Total stockholders’ equity | $ | 2,169,785 | | | $ | 2,111,282 | | | $ | 2,030,424 | | | | | |
| Less: Goodwill and core deposit intangible assets, net | (467,182) | | | (467,583) | | | (468,832) | | | | | |
| TCE | $ | 1,702,603 | | | $ | 1,643,699 | | | $ | 1,561,592 | | | | | |
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| Total assets | $ | 17,354,189 | | | $ | 17,375,091 | | | $ | 20,076,364 | | | | | |
| Less: Goodwill and core deposit intangible assets, net | (467,182) | | | (467,583) | | | (468,832) | | | | | |
| Tangible assets | $ | 16,887,007 | | | $ | 16,907,508 | | | $ | 19,607,532 | | | | | |
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| TCE ratio | 10.08 | % | | 9.72 | % | | 7.96 | % | | | | |
| Common shares outstanding | 120,737,908 | | | 120,731,342 | | | 120,026,220 | | | | | |
| TCE per share | $ | 14.10 | | | $ | 13.61 | | | $ | 13.01 | | | | | |
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| Three Months Ended | | Nine Months Ended |
| RETURN ON AVERAGE TANGIBLE COMMON EQUITY | 9/30/2024 | | 6/30/2024 | | 9/30/2023 | | 9/30/2024 | | 9/30/2023 |
| Average stockholders’ equity | $ | 2,139,861 | | | $ | 2,097,108 | | | $ | 2,079,092 | | | $ | 2,121,169 | | | $ | 2,066,157 | |
| Less: Average goodwill and core deposit intangible assets, net | (467,419) | | | (467,822) | | | (469,079) | | | (467,822) | | | (469,525) | |
| Average TCE | $ | 1,672,442 | | | $ | 1,629,286 | | | $ | 1,610,013 | | | $ | 1,653,347 | | | $ | 1,596,632 | |
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| Net income | $ | 24,159 | | | $ | 25,270 | | | $ | 30,049 | | | $ | 75,293 | | | $ | 107,192 | |
| ROTCE (annualized) | 5.78 | % | | 6.20 | % | | 7.47 | % | | 6.07 | % | | 8.95 | % |
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Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
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| Three Months Ended | | Nine Months Ended |
| PROFITABILITY RATIOS EXCLUDING NOTABLE ITEMS | 9/30/2024 | | 6/30/2024 | | 9/30/2023 | | 9/30/2024 | | 9/30/2023 |
| Net income | $ | 24,159 | | | $ | 25,270 | | | $ | 30,049 | | | $ | 75,293 | | | $ | 107,192 | |
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| Notable items: | | | | | | | | | |
| FDIC special assessment expense | — | | | (309) | | | — | | | 691 | | | — | |
| Restructuring-related costs | 197 | | | 576 | | | 500 | | | 1,175 | | | 500 | |
| Merger-related costs | 1,236 | | | 1,589 | | | — | | | 3,869 | | | — | |
| Total notable items | 1,433 | | | 1,856 | | | 500 | | | 5,735 | | | 500 | |
| Less: tax provision | 421 | | | 547 | | | 147 | | | 1,687 | | | 147 | |
| Total notable items, net of tax provision | $ | 1,012 | | | $ | 1,309 | | | $ | 353 | | | $ | 4,048 | | | $ | 353 | |
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| Net income excluding notable items | $ | 25,171 | | | $ | 26,579 | | | $ | 30,402 | | | $ | 79,341 | | | $ | 107,545 | |
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| Diluted common shares | 121,159,977 | | | 120,939,429 | | | 120,374,618 | | | 121,027,793 | | | 120,249,952 | |
| EPS excluding notable items | $ | 0.21 | | | $ | 0.22 | | | $ | 0.25 | | | $ | 0.66 | | | $ | 0.89 | |
| Average Assets | $ | 17,369,169 | | | $ | 17,256,638 | | | $ | 20,059,304 | | | $ | 17,920,176 | | | $ | 19,875,322 | |
| ROA excluding notable items | 0.58 | % | | 0.62 | % | | 0.61 | % | | 0.59 | % | | 0.72 | % |
| Average Equity | $ | 2,139,861 | | | $ | 2,097,108 | | | $ | 2,079,092 | | | $ | 2,121,169 | | | $ | 2,066,157 | |
| ROE excluding notable items | 4.71 | % | | 5.07 | % | | 5.85 | % | | 4.99 | % | | 6.94 | % |
| Average TCE | $ | 1,672,442 | | | $ | 1,629,286 | | | $ | 1,610,013 | | | $ | 1,653,347 | | | $ | 1,596,632 | |
| ROTCE excluding notable items | 6.02 | % | | 6.53 | % | | 7.55 | % | | 6.40 | % | | 8.98 | % |
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| Three Months Ended | | Nine Months Ended |
| EFFICIENCY RATIO EXCLUDING NOTABLE ITEMS | 9/30/2024 | | 6/30/2024 | | 9/30/2023 | | 9/30/2024 | | 9/30/2023 |
| Noninterest expense | $ | 81,268 | | | $ | 80,987 | | | $ | 86,811 | | | $ | 247,094 | | | $ | 262,768 | |
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| Less: notable items: | | | | | | | | | |
| FDIC special assessment expense | — | | | 309 | | | — | | | (691) | | | — | |
| Restructuring-related costs | (197) | | | (576) | | | (500) | | | (1,175) | | | (500) | |
| Merger-related costs | (1,236) | | | (1,589) | | | — | | | (3,869) | | | — | |
| Noninterest expense excluding notable items | $ | 79,835 | | | $ | 79,131 | | | $ | 86,311 | | | $ | 241,359 | | | $ | 262,268 | |
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| Revenue | $ | 116,648 | | | $ | 116,931 | | | $ | 143,683 | | | $ | 356,912 | | | $ | 436,242 | |
| Efficiency ratio excluding notable items | 68.44 | % | | 67.67 | % | | 60.07 | % | | 67.62 | % | | 60.12 | % |
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2024 Third Quarter Earnings Conference Call October 28, 2024
Forward Looking Statements & Additional Disclosures This presentation contains statements regarding future events or the future financial performance of Hope Bancorp, Inc. (“Company”), including regarding its pending merger with Territorial Bancorp Inc. (“Territorial”), that 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. Additionally, the forward-looking statements also relate to, among other things, expectations regarding the business and economic environment in which the Company operates, projections of future performance and financial outlook, perceived opportunities in the market, and statements regarding our business strategies, objectives and vision, as well as statements regarding the Company’s strategic reorganization. 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,” “targets,” 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 materially and adversely from the results, performance or achievements expressed or implied in any forward-looking statements. The closing of the pending transaction with Territorial is subject to regulatory approvals, the approval of the shareholders of Territorial, 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 the Company and Territorial and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees and customers, may be greater than expected; and required governmental approvals of the merger may not be obtained on its proposed terms and schedule, or without regulatory constraints that may limit growth. Other risks and uncertainties include, but are not limited to: possible further deterioration in economic conditions in the Company’s 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; the failure of or changes to assumptions and estimates underlying the Company’s allowances for credit losses, and regulatory risks associated with current and future regulations. For additional information concerning these and other risk factors, see the Company’s most recent Annual Report on Form 10-K. 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. 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 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, and further supplemented by Hope Bancorp on September 12, 2024. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. Territorial Bancorp shareholders are encouraged to read the Registration Statement and the Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information about the pending merger. Territorial Bancorp shareholders will be able to obtain a free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Hope Bancorp and Territorial Bancorp at the SEC’s Internet site (www.sec.gov). Territorial Bancorp shareholders will also be able to obtain these documents, free of charge, from Territorial Bancorp at https://www.tsbhawaii.bank/tsb/investor-relations/. Participants in Solicitation Hope Bancorp, Inc., Territorial Bancorp and certain of their directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the merger. Information concerning Hope Bancorp, Inc.’s directors and executive officers is set forth in the Proxy Statement, dated April 12, 2024 (as amended and supplemented), for its 2024 annual meeting of stockholders as filed with the SEC on Schedule 14A. Information concerning Territorial Bancorp’s participants is set forth in the Proxy Statement, dated April 16, 2024, for Territorial Bancorp’s 2024 annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the interests of those participants in the solicitation of proxies in respect of the merger may be obtained by reading the Registration Statement and Proxy Statement/Prospectus filed with the SEC. 2
Strong Capital & Liquidity • Total capital ratio was 14.80% at 9/30/24, +39bps QoQ. Record risk-based capital ratios since merger with Wilshire • Tangible common equity (“TCE”) ratio(1) was 10.08% at 9/30/24, +36bps QoQ • Strategically compelling acquisition of Hawai`i-based Territorial Bancorp (TBNK) pending Deposits • Deposits of $14.7B at 9/30/24, stable QoQ. Robust customer deposit growth of 11% linked quarter annualized • Customer deposit growth offset planned reduction of brokered deposits (down $351MM QoQ) • End-of-period cost of total deposits at 9/30/24 down -9bps from 6/30/24, indicating inflection in costs by deposit type Loans • Gross loans of $13.6B at 9/30/24 (+$8MM QoQ). Sold $41MM of SBA loans in 3Q24 • Loans receivable (excluding HFS) at 9/30/24 grew +$51MM or 2% linked quarter annualized • Gross loan-to-deposit ratio of 92.6% at 9/30/24 Asset Quality • Nonperforming assets (“NPA”) of $104MM, or 0.60% of total assets • 3Q24 net charge offs of $6MM, equivalent to 0.17% of average loans annualized Earnings • 3Q24 net income: $24.2MM, or $0.20 per diluted share • 3Q24 net income excluding notable items(1): $25.2MM, or $0.21(1) per diluted share • 3Q24 notable items after tax: merger-related expenses of $873K and restructuring-related charges of $139K Q3 2024 Financial Overview Total Capital & TCE Ratio at 9/30/24 14.80% / 10.08% NPA/Total Assets at 9/30/24 0.60% Gross Loans at 9/30/24 $13.6B Total Deposits at 9/30/24 $14.7B 3 3Q24 Net Income & EPS $24.2MM / $0.20 Excluding notable items $25.2MM /$0.21 (1) TCE ratio, net income excluding notable items and earnings per share (“EPS”) 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 Appendix of this presentation.
Strong Capital Ratios 4 Common Equity Tier 1 Capital Ratio • Capital ratios increased QoQ: All regulatory capital ratios meaningfully above requirements for “well-capitalized” financial institutions • Highest risk-based capital ratios for Hope Bancorp since merger with Wilshire in 2016 • Proforma capital very strong: Adjustments for the allowance for credit losses (“ACL”) and hypothetical adjustments for investment security marks not otherwise already reflected in equity, still result in very strong capital ratios • Dividend: Quarterly common stock dividend of $0.14 per share, or $0.56 per share annualized. Equivalent to a dividend yield of 4.46% at 9/30/24 • Strategically compelling merger pending: Fixed exchange ratio: 0.8048x HOPE shares per Territorial Bancorp Inc. (TBNK) share in an all- stock transaction • Equity: Book value per common share of $17.97 & TCE per share(1) of $14.10 at 9/30/24, up $0.48 and $0.49, respectively, QoQ Tangible Common Equity (“TCE”) Ratio(1) Total Capital Ratio Leverage Ratio Well Capitalized Reg. Minimum 6.50% (1) TCE ratio and TCE per share are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix of this presentation. * Proforma ratios at 9/30/24 are non-GAAP financial measures and reflect (a) inclusion of on- and off-balance sheet ACL not already in capital; (b) treatment of held-to-maturity (“HTM”) securities as if they were available- for-sale (“AFS”), with unrealized losses in AOCI; and (c) removal of the AOCI opt-out in calculating regulatory capital. Well Capitalized Reg. Minimum 10.00% Well Capitalized Reg. Minimum 5.00%
Diverse & Granular Deposit Base 5 Noninterest Bearing Demand Deposits 25% Money Market, Interest Bearing Demand & Savings 34% Time Deposits 41% $14.7B Total Deposits (at 9/30/24) • Average commercial account size: approx. $218,000 for 3Q24 • Average consumer deposit account size: approx. $46,000 for 3Q24 • Total deposits of $14.7B at 9/30/24, stable QoQ • Robust growth of customer deposits +11% annualized offset planned reduction of brokered deposits in 3Q24. Brokered deposits decreased -$351MM QoQ • Sale of Virginia branches closed on 10/1/24, approx. ~$129MM of deposits sold Deposit Composition by Product Type Deposit Composition by Customer Type 49% 51% 50% 50% 49% 51% 34% 35% 37% 38% 39% 39% 14% 12% 10% 10% 9% 7% 3% 2% 3% 2% 3% 3% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Commercial Consumer Brokered Public & Other
Well-Balanced Loan Portfolio 6 Nonowner- Occupied CRE 34% Owner-Occupied CRE 20% C&I 29% Residential Mortgage & Other 8% Multifamily Residential 9% $13.6B Gross Loans (at 9/30/24) $1.1B Avg Size: $0.6MM $4.7B Avg Size: $1.9MM $2.7B Avg Size: $2.2MM $3.9B Avg Size: $1.5MM $1.2B Avg Size: $2.3MM $0.03B; <1% Loans Held for Sale • Loan portfolio well-diversified across major loan types of nonowner-occupied CRE, C&I, owner-occupied CRE, multifamily residential (“MFR”), and residential mortgage • Gross loans, including loans held for sale (“HFS”), were $13.6B at 9/30/24, up slightly from 6/30/24 • Loans receivable, excluding loans HFS, increased +2% linked quarter annualized • Sold $41MM of SBA 7(a) loans in 3Q24 • 3Q24 QoQ trends: growth in residential mortgage and C&I loans. SBA loan production continued to strengthen. CRE loan balances decreased QoQ
As a % of Total Loans: Avg Loan Size: Weighted Avg LTV(1): 12% Multi-tenant Retail $1,641MM $2.4MM 42.5% 9% Industrial & Warehouse $1,245MM $2.4MM 41.0% 9% Multifamily $1,205MM $2.3MM 61.2% 7% Gas Station & Car Wash $1,021MM $1.7MM 48.2% 6% Mixed Use $826MM $2.0MM 48.0% 6% Hotel/Motel $801MM $2.2MM 43.3% 5% Single-tenant Retail $663MM $1.4MM 46.4% 3% Office $396MM $2.2MM 54.8% 6% All Other $833MM $1.5MM 41.5% Diversified CRE Portfolio with Low LTVs Total CRE: Distribution by LTV (excl. SBA) < 50%: 56% > 50% - 55%: 14% > 55% - 60%: 10% > 60% - 65%: 7% > 65% - 70%: 5% > 70%: 8%$8.6B CRE Portfolio (at 9/30/24) 47% Weighted Avg LTV(1) (1) Weighted average loan-to-value (“LTV”): Current loan balance divided by updated collateral value. Collateral value updates most recent available appraisal by using CoStar market and property-specific data, including submarket appreciation or depreciation, and changes to vacancy, debt service coverage or rent/sq foot. • Total CRE loans of $8.6B at 9/30/24, stable QoQ. Portfolio consists of $4.7B of nonowner-occupied CRE, $2.7B of owner-occupied CRE, and $1.2B of MFR • CRE Office: represented less than 3% of total loans at 9/30/24, with no central business district exposure 7 $8.6B CRE Portfolio (at 9/30/24)
LA Fashion District Gateway Cities San Gabriel Valley South Bay LA Koreatown Other LA County (No exposure to downtown LA commercial business district) Orange County San Bernardino County Riverside County Other SoCal San Francisco, $39 Greater SF Bay Area Other NorCal Manhattan Queens County Kings County Other New York New Jersey Texas Washington Illinois Other States Granular CRE Portfolio, Diversified by Submarket 8 CRE Portfolio by Geographic Submarket ($ Millions) Loan Size (at 9/30/24) Balance ($ Millions) # of Loans Average Loan Size ($ Millions) Weighted Average LTV(1) > $30MM $ 288 7 $ 41.1 62.2% $20MM - $30MM $ 622 26 $ 23.9 49.6% $10MM - $20MM $ 1,329 97 $ 13.7 52.3% $5MM - $10MM $ 1,643 243 $ 6.8 49.6% $2MM - $5MM $ 2,433 785 $ 3.1 46.3% < $2MM $ 2,316 3,143 $ 0.7 40.3% Total CRE Portfolio $ 8,631 4,301 $ 2.0 47.1% • Loan-to-value ratios are consistently low across segments by size and by property type • Vast majority of CRE loans have full recourse and personal guarantees • 98.0% of total CRE portfolio was pass-graded at 9/30/24 CRE Portfolio by Size Segment (1) Weighted average LTV: Current loan balance divided by updated collateral value. Collateral value updates most recent available appraisal by using CoStar market and property-specific data, including submarket appreciation or depreciation, and changes to vacancy, debt service coverage or rent/sq foot. $8.6B CRE Portfolio (at 9/30/24) SoCal NorCal NY/NJ Texas Washington Illinois Other States $314
Net Interest Income & Net Interest Margin 9 Net Interest Income & Net Interest Margin $135 $126 $115 $106 $105 2.83% 2.70% 2.55% 2.62% 2.55% 3Q23 4Q23 1Q24 2Q24 3Q24 2.55% 2.62% Change in cost and balances of borrowings +1bps 3Q24 NIM change: -7bps QoQ Net Interest Income Net Interest Margin (annualized) QoQ Change in Net Interest Margin 2Q24 3Q24 Change in yield & balances of other earning assets +4bps Change in yield & balances of loans -8bps Change in cost and balances of IB deposits -4bps • 3Q24 net interest income of $105MM down -1% QoQ. Growth in interest income offset by increased interest expense • 3Q24 avg. cost of total deposits of 3.44% up +5bps QoQ. End-of-period total deposit costs of 3.34% at 9/30/24, down -9bps QoQ, demonstrating inflection point in deposit costs by deposit type • 3Q24 net interest margin (“NIM”) of 2.55% contracted -7bps QoQ, largely reflecting the changes in cost and balances of interest bearing (“IB”) deposits Quarterly Rate of Change in Avg. Cost of Total Deposits 1bps 9bps 46bps 83bps 75bps 42bps 19bps 17bps 21bps 3bps 5bps 0 10 20 30 40 50 60 70 80 90 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 ($ Millions) -4bps
2.98% 3.15% 3.36% 3.39% 3.44% 4.10% 4.32% 4.51% 4.54% 4.59% 5.43% 5.50% 5.50% 5.50% 5.43% 3Q23 4Q23 1Q24 2Q24 Q324 Cost of Total Deposits (ann.) Cost of IB Deposits (ann.) Avg Fed Funds Rate Average Loans & Deposits, Yields & Rates 10 Average Deposits Average Loans ($ Billions) ($ Billions) $14.6 $14.1 $13.7 $13.6 $13.6 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 3Q23 4Q23 1Q24 2Q24 3Q24 11.4 11.1 11.1 10.9 11.0 4.3 4.1 3.8 3.7 3.7 3Q23 4Q23 1Q24 2Q24 3Q24 Avg Interest Bearing ("IB") Deposits Avg Non IB Deposits 6.27% 6.24% 6.25% 6.20% 6.16% 5.43% 5.50% 5.50% 5.50% 5.43% 3Q23 4Q23 1Q24 2Q24 3Q24 Avg Loan Yield (annualized) Avg Fed Funds Rate Average Loan-to-Deposit Ratio 93% 92% 92% 94% 92% Average Cost of Deposits Relative to Fed Funds Rate Average Loan Yield Relative to Fed Funds Rate $14.5$14.9$15.3$15.7 $14.7
2.4 2.5 2.6 2.7 2.7 2.0 2.7 5.9 6.8 5.7 6.4 6.5 3Q23 4Q23 1Q24 2Q24 3Q24 Service Fees on Deposit Accounts Net Gains on SBA Loan Sales Other Income & Fees Noninterest Income 11 Noninterest Income ($ Millions) $11.8 $8.3 $9.3 $8.3 $11.1 • 3Q24 noninterest income of $12MM, up +7% from $11MM in 2Q24 • Sold $41MM of the guaranteed portion of SBA 7(a) loans during 3Q24 and recorded a net gain on sale of $3MM vs. $30MM sold during 2Q24 for a net gain on sale of $2MM • 3Q24 other income & fees included $403K BOLI gain, as well as $326K net loss on sales of securities AFS, as Company repositioned some lower-yielding securities
60.4% 73.4% 68.8% 69.3% 69.7% 60.1% 62.2% 66.8% 67.7% 68.4% 3Q23 4Q23 1Q24 2Q24 3Q24 Efficiency Ratio (GAAP) Efficiency Ratio (ex. notable items) 51.0 47.4 47.6 44.1 44.2 12.8 12.5 12.1 12.4 12.3 22.5 24.2 22.7 22.6 23.3 3Q23 4Q23 1Q24 2Q24 3Q24 Salary & Employee Benefits Occupancy & FF&E Other Expenses Efficiency Ratio Noninterest Expense & Efficiency 12 $79.8 $86.3 $84.1 $82.4 $79.1 Noninterest Expense(1) (excluding notable items) ($ Millions) • 3Q24 GAAP noninterest expense of $81MM, stable QoQ and down -6% YoY – 3Q24 notable items (pre-tax): $1.2MM merger-related expenses, and $197K restructuring-related costs • Excluding notable items, 3Q24 noninterest expense of $80MM, vs. $79MM in 2Q24, and down -8% YoY • Salaries & employee benefits expense stable QoQ and down -13% YoY (1) The noninterest expense chart columns present noninterest expense excluding notable items, which is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix of this presentation. Historical noninterest expense excludes provision for unfunded loan commitments, which was reclassified to the provision for credit losses beginning 1Q24. (2) Efficiency ratio 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 Appendix of this presentation. GAAP Noninterest Expense $86.8 $99.2 $84.8 $81.0 (2) $81.3
$159 $159 $159 $156 $153 1.11% 1.15% 1.16% 1.15% 1.13% 3Q23 4Q23 1Q24 2Q24 3Q24 ACL ACL Coverage Ratio • Allowance for credit losses (“ACL”) totaled $153MM at 9/30/24 • ACL coverage ratio: 1.13% of loans receivable as of 9/30/24, vs. 1.15% as of 6/30/24 and 1.11% at 9/30/23. QoQ change: positive impact from improved macroeconomic variables, notably CRE Price Index, partially offset by increased qualitative and individually evaluated loan reserves • Net charge offs (“NCO”): moderate and manageable at $5.7MM, or 17bps of average loans, annualized, in 3Q24 • Nonperforming assets (“NPA”) of $104MM at 9/30/24, up from $67MM at 6/30/24, reflecting migration of one relationship after loans matured. Relationship consists of three CRE loans well-secured by properties in primary locations with minimal to no loss expected. Borrower actively in the process of selling the properties Asset Quality Metrics 13 Provision for Credit Losses & Net Charge Offs Nonperforming Assets RatioAllowance for Credit Losses & Coverage Ratio Criticized Loans Ratio $17 $2 $3 $1 $3 $31 $2 $4 $4 $6 0.85% 0.05% 0.10% 0.13% 0.17% 3Q23 4Q23 1Q24 2Q24 3Q24 Provision for Credit Losses NCO NCO Ratio (ann.) 2.52% 2.33% 3.07% 3.30% 3.71% 3Q23 4Q23 1Q24 2Q24 3Q24 Total Criticized Loans as a % of Total Loans ($ Millions) ($ Millions) 0.31% 0.24% 0.59% 0.39% 0.60% 3Q23 4Q23 1Q24 2Q24 3Q24 NPAs/Total Assets
Management’s Financial Outlook for 4Q24* vs. 3Q24 14 3Q24 actual ($ Millions) Outlook for 4Q24 * vs. 3Q24 actual Comments Average Loans $ 13,575 Low single-digit % growth QoQ ▪ Continued strength in residential mortgage and SBA loan production ▪ Improving loan pipelines in C&I and CRE Net Interest Income $ 105 Low single-digit % growth QoQ ▪ Continued deposit rate management ▪ Fed Funds upper target rate of 4.50% at 12/31/24, consistent with current forward interest rate curve SBA Loan Gain on Sale $ 3 Similar levels to 3Q24 ▪ Continued SBA loan sale activity in 4Q24 Noninterest Expense (1) (excluding notable items) $ 80 Essentially stable ▪ Continuing to closely manage expense spending Allowance for Credit Losses Coverage 1.13% Essentially stable ACL coverage ▪ Based on current economic outlook, expecting essentially stable ACL coverage Operating Leverage Positive operating leverage in 4Q24 compared with 3Q24 * Outlook excludes impact of pending merger with Territorial Bancorp (TBNK), announced on 4/29/24. The updated Financial Outlook for 4Q24 is presented as of October 28, 2024, reflects the Company’s financial outlook for 4Q24 vs. actual results in 3Q24, and will not be updated or affirmed unless and until the Company publicly announces such update or affirmation. The Company’s financial outlook for 4Q24 is dependent on macroeconomic factors, including, but limited to, changes to market interest rates, and reflects expectations as of the date of this presentation. The Financial Outlook for 4Q24 contains forward-looking statements and actual results or conditions may differ materially and adversely from those included in the Financial Outlook for 4Q24. Please refer to the “forward-looking statements” on Slide 2 of this presentation. (1) 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 Appendix of this presentation.
Appendix 15
Summary Balance Sheet 16 ($ in millions, except per share data) 9/30/24 6/30/24 QoQ % change 9/30/23 YoY % change Cash and due from banks $ 680.9 $ 654.0 4.1 % $ 2,500.3 (72.8)% Investment securities 2,177.3 2,172.9 0.2 % 2,260.8 (3.7)% Federal Home Loan Bank (“FHLB”) stock and other investments 57.2 61.5 (7.1)% 60.4 (5.4)% Gross loans 13,643.7 13,635.3 0.1 % 14,325.7 (4.8)% Allowance for credit losses (153.3) (156.0) (1.8)% (158.8) (3.5)% Goodwill and intangible assets 467.2 467.6 (0.1) % 468.8 (0.4) % Other assets 481.2 539.8 (10.8)% 619.2 (22.3)% Total assets $ 17,354.2 $ 17,375.1 (0.1)% $ 20,076.4 (13.6)% Deposits $ 14,729.5 $ 14,711.5 0.1 % $ 15,739.9 (6.4)% Borrowings & other debt 209.2 278.9 (25.0)% 1,903.7 (89.0)% Other liabilities 245.7 273.4 (10.2)% 402.4 (39.0)% Total liabilities $ 15,184.4 $ 15,263.8 (0.5)% $ 18,046.0 (15.9)% Total stockholders’ equity $ 2,169.8 $ 2,111.3 2.8 % $ 2,030.4 6.9 % Book value per share $17.97 $17.49 2.7 % $16.92 6.2 % Tangible common equity (“TCE”) per share(1) $14.10 $13.61 3.6 % $13.01 8.4 % Tangible common equity ratio(1) 10.08% 9.72% 7.96% Loan-to-deposit ratio 92.6% 92.7% 91.0% (1) TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix of this presentation.
Summary Income Statement 17 ($ in thousands, except per share and share data) 3Q24 1Q24 QoQ % change 3Q23 YoY % change Net interest income before provision for credit losses $ 104,809 $ 105,860 (1)% $ 135,378 (23)% Provision for credit losses 3,280 1,400 134 % 16,862 (81)% Net interest income after provision for credit losses 101,529 104,460 (3)% 118,516 (14)% Noninterest income 11,839 11,071 7 % 8,305 (43)% Noninterest expense 81,268 80,987 —% 86,811 (6)% Noninterest expense excluding notable items(1) 79,835 79,131 1 % 86,311 (8)% Income before income taxes 32,100 34,544 (7)% 40,010 (20)% Income tax provision 7,941 9,274 (14)% 9,961 (20)% Net income $ 24,159 $ 25,270 (4)% $ 30,049 (20)% Net income excluding notable items(1) $ 25,171 $ 26,579 (5)% $ 30,402 (17)% Earnings Per Common Share - Diluted $0.20 $0.21 $0.25 Earnings Per Common Share excluding notable items(1) - Diluted $0.21 $0.22 $0.25 Weighted Average Shares Outstanding - Diluted 121,159,977 120,939,429 120,374,618 (1) Noninterest expense excluding notable items, net income excluding notable items, and diluted earnings per common share excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix of this presentation.
Appendix: Non-GAAP Financial Measures Reconciliation Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below. Tangible Common Equity (TCE) 18 Return on Average Tangible Common Equity (ROTCE) ($ in thousands, except per share info) 3Q24 2Q24 3Q23 Total stockholders’ equity $ 2,169,785 $ 2,111,282 $ 2,030,424 Less: Goodwill and core deposit intangible assets, net (467,182) (467,583) (468,832) TCE $ 1,702,603 $ 1,643,699 $ 1,561,592 Total assets $ 17,354,189 $ 17,375,091 $ 20,076,364 Less: Goodwill and core deposit intangible assets, net (467,182) (467,583) (468,832) Tangible assets $ 16,887,007 $ 16,907,508 $ 19,607,532 TCE ratio 10.08% 9.72% 7.96% Common shares outstanding 120,737,908 120,731,342 120,026,220 TCE per share $ 14.10 $ 13.61 $ 13.01 ($ in thousands) 3Q24 2Q24 3Q23 Average stockholders’ equity $ 2,139,861 $ 2,097,108 $ 2,072,092 Less: Average goodwill and core deposit intangible assets, net (467,419) (467,822) (469,079) Average TCE $ 1,672,442 $ 1,629,286 $ 1,610,013 Net income $ 24,159 $ 25,270 $ 30,049 ROTCE (annualized) 5.78% 6.20% 7.47%
Appendix: Non-GAAP Financial Measures Reconciliation (cont’d) 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. 19 ($ in thousands) 3Q24 2Q24 3Q23 Noninterest expense $ 81,268 $ 80,987 $ 86,811 Less: notable items: FDIC special assessment expense — 309 — Restructuring-related costs (197) (576) (500) Merger-related costs (1,236) (1,589) — Noninterest expense excluding notable items $ 79,835 $ 79,131 $ 86,311 Revenue $ 116,648 $ 116,931 $ 143,683 Efficiency ratio excluding notable items 68.44% 67.67% 60.07% Efficiency Ratio Excluding Notable Items ($ in thousands) 3Q24 2Q24 3Q23 Net income $ 24,159 $ 25,270 $ 30,049 Notable items: FDIC special assessment expense — (309) — Restructuring-related costs 197 576 500 Merger-related costs 1,236 1,589 — Total notable items 1,433 1,856 500 Less: tax provision 421 547 147 Total notable items, net of tax provision 1,012 1,309 353 Net income excluding notable items $ 25,171 $ 26,579 $ 30,402 Diluted common shares 121,159,977 120,939,429 120,374,618 EPS excluding notable items $ 0.21 $ 0.22 $ 0.25 Average assets $ 17,369,169 $ 17,256,638 $ 20,059,304 ROA excluding notable items 0.58% 0.62% 0.61% Average equity $ 2,139,861 $ 2,097,108 $ 2,072,092 ROE excluding notable items 4.71% 5.07% 5.85% Average TCE $ 1,672,442 $ 1,629,286 $ 1,610,013 ROTCE excluding notable items 6.02% 6.53% 7.55% Profitability Ratios Excluding Notable Items
News Release
HOPE BANCORP DECLARES QUARTERLY CASH DIVIDEND OF $0.14 PER SHARE
LOS ANGELES - October 28, 2024 - Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE) today announced that its Board of Directors declared a quarterly cash dividend of $0.14 per common share. The dividend is payable on or about November 21, 2024, to all stockholders of record as of the close of business on November 7, 2024.
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 $17.35 billion in total assets as of September 30, 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.
Contacts:
| | | | | | | | |
Julianna Balicka | | Angie Yang |
| EVP & Chief Financial Officer | | SVP, Director of Investor Relations & Corporate Communications |
213-235-3235 | | 213-251-2219 |
julianna.balicka@bankofhope.com | | angie.yang@bankofhope.com |
# # #
v3.24.3
| X |
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| Name: |
dei_AmendmentFlag |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
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| Period Type: |
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| X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
| Name: |
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| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
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| X |
- Definition
+ References
+ Details
| Name: |
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| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
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| Period Type: |
duration |
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| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
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| Period Type: |
duration |
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| X |
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| Name: |
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| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
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| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
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dei_ |
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| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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dei_ |
| Data Type: |
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| Balance Type: |
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| Period Type: |
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| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
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| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
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| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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| Namespace Prefix: |
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| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
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| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
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| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
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| Namespace Prefix: |
dei_ |
| Data Type: |
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| Balance Type: |
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| Period Type: |
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| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
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dei_PreCommencementTenderOffer |
| Namespace Prefix: |
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| Data Type: |
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| Balance Type: |
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| Period Type: |
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| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
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| Namespace Prefix: |
dei_ |
| Data Type: |
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| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
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| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
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dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
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| Period Type: |
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| X |
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dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
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| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
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| Namespace Prefix: |
dei_ |
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| Balance Type: |
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| Period Type: |
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Hope Bancorp (NASDAQ:HOPE)
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