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Hope Bancorp Reports 2021 First Quarter Financial Results

Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its first quarter ended March 31, 2021.

For the three months ended March 31, 2021, net income totaled $43.7 million, or $0.35 per diluted common share, representing an increase of 54% from $28.3 million, or $0.23 per diluted common share in the fourth quarter of 2020 and an increase of 68% from $26.0 million, or $0.21 per diluted common share, in the year-ago first quarter.

“First quarter results were solid, reflecting the continued benefits of the operational improvements that we implemented in 2020,” said Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc. “We continued to support our customers in this pandemic-challenged business environment by providing $305 million in the second round of PPP funding, which contributed to new loan originations totaling $847 million in the first quarter. Noninterest bearing deposits increased 13% from year-end and accounted for a record high 38% of total deposits at March 31, 2021. This contributed to a sixth consecutive quarter of declining cost of deposits, which supported another quarter of net interest margin expansion for the Company. Additionally, we continued to proactively manage our expenses which resulted in noninterest expense to average assets improving to 1.65% from 1.69% in the preceding quarter.

“During the first quarter, we saw an expected increase in our criticized assets due to the impact COVID-19 has had on the travel industry, but remain well reserved given the considerable build up of our allowance for credit losses last year in anticipation of the eventual migration of these credits in the normal course of the credit administration process. We are, however, pleased to see the continued improvements in the economy, which supported a significantly lower provision expense this quarter and contributed to a 54% increase in net income quarter-over-quarter. With the vaccination campaign in the U.S. well underway and the COVID-related restrictions gradually being lifted, we have greater confidence in our ability to deliver enhanced performance as the year proceeds.”

Q1 2021 Highlights

  • Net interest income before provision for credit losses increased 2% quarter-over-quarter to $122.6 million, benefiting from reduced interest expense due to lower cost of deposits.
  • Net interest margin expanded 4 basis points quarter-over-quarter.
  • Noninterest bearing demand deposits increased 13% quarter-over-quarter and increased as a percentage of total deposits to 38% from 34% at year-end 2020.
  • Cost of interest bearing deposits decreased 15 basis points and total cost of deposits decreased 12 basis points quarter-over-quarter continuing a six-quarter trend of declining deposit costs.
  • Loan originations totaled $847.1 million, including a second round of PPP fundings of $304.7 million, and contributed to a 1.0% increase in loans receivable quarter-over-quarter, or 4.1% annualized.
  • Efficiency ratio improved to 53.61% from 53.77% quarter-over-quarter and noninterest expense to average assets improved to 1.65% from 1.69%.
  • Net income increased 54% quarter-over-quarter and totaled $43.7 million, or $0.35 per diluted common share.

Financial Highlights

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

At or for the Three Months Ended

 

3/31/2021

 

12/31/2020

 

3/31/2020

Net income

$

43,687

 

 

$

28,319

 

 

$

25,953

 

Diluted earnings per share

$

0.35

 

 

$

0.23

 

 

$

0.21

 

Net interest income before provision for credit losses

$

122,579

 

 

$

120,756

 

 

$

119,291

 

Net interest margin

 

3.06

%

 

 

3.02

%

 

 

3.31

%

Noninterest income

$

8,804

 

 

$

11,415

 

 

$

13,264

 

Noninterest expense

$

70,431

 

 

$

71,063

 

 

$

72,140

 

Net loans receivable

$

13,494,686

 

 

$

13,356,472

 

 

$

12,438,493

 

Deposits

$

14,301,269

 

 

$

14,333,912

 

 

$

12,836,567

 

Total cost of deposits

 

0.36

%

 

 

0.48

%

 

 

1.34

%

Nonaccrual loans(1)

$

109,858

 

 

$

85,238

 

 

$

72,639

 

Nonperforming loans to loans receivable(1)

 

1.11

%

 

 

0.91

%

 

 

0.93

%

ACL to loans receivable

 

1.52

%

 

 

1.52

%

 

 

1.15

%

ACL to nonaccrual loans(1)

 

189.28

%

 

 

242.55

%

 

 

199.51

%

ACL to nonperforming assets(1)

 

121.94

%

 

 

144.24

%

 

 

103.62

%

Provision for credit losses

$

3,300

 

 

$

27,500

 

 

$

28,000

 

Net charge offs

$

2,098

 

 

$

608

 

 

$

3,421

 

Return on average assets (“ROA”)

 

1.02

%

 

 

0.67

%

 

 

0.67

%

Return on average equity (“ROE”)

 

8.53

%

 

 

5.54

%

 

 

5.12

%

Return on average tangible common equity (“ROTCE”)(2)

 

11.11

%

 

 

7.21

%

 

 

6.69

%

Noninterest expense / average assets

 

1.65

%

 

 

1.69

%

 

 

1.87

%

Efficiency ratio

 

53.61

%

 

 

53.77

%

 

 

54.42

 

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

(2) Return on average tangible common equity is a non-GAAP financial measure. A reconciliation of the Company’s return on average tangible common equity is provided in the accompanying financial information on Table Page 9.

Operating Results for the 2021 First Quarter

Net interest income before provision for credit losses for the 2021 first quarter increased 2% to $122.6 million from $120.8 million in the 2020 fourth quarter and increased 3% from $119.3 million in the 2020 first quarter. The Company attributed the increase in net interest income primarily to meaningful reductions in interest expense due to lower trending cost of deposits.

The net interest margin for the 2021 first quarter increased 4 basis points to 3.06% from 3.02% in the preceding 2020 fourth quarter, reflecting the benefits of lower deposit costs, partially offset by lower weighted average yield on loans. The net interest margin in the prior-year first quarter was 3.31%.

The weighted average yield on loans for the 2021 first quarter was 3.94%, compared with 4.03% in the preceding fourth quarter and 5.06% in the year-ago first quarter.

The weighted average cost of deposits for the 2021 first quarter decreased for the sixth consecutive quarter to 0.36%, representing a 12 basis point decrease from 0.48% for the 2020 fourth quarter and a 98 basis point decrease from 1.34% for the 2020 first quarter. The Company attributed the significant improvements in the weighted average cost of deposits to a continuing shift in its deposit mix to lower-cost core deposits and the ongoing downward repricing of interest bearing deposits. The cost of interest bearing deposits was 0.56%, 0.71% and 1.76% at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

Noninterest income totaled $8.8 million for the 2021 first quarter, compared with $11.4 million in the preceding fourth quarter. The largest factors contributing to the decrease included a $1.5 million decline in quarter-over-quarter swap fee income and a $1.2 million reduction in deposit service fees which was largely attributable to the Company’s exiting certain money service business accounts. These decreases were partially offset by increases in loan servicing fees and gain on sales of residential mortgage loans. Noninterest income in the year-ago first quarter totaled $13.3 million.

Noninterest expense for the 2021 first quarter decreased to $70.4 million from $71.1 million in the preceding fourth quarter and $72.1 million in the year-ago first quarter.

Salaries and employee benefits expense for the 2021 first quarter increased 1% to $41.2 million from $40.9 million in the preceding fourth quarter and included higher payroll taxes and 401k contributions partially offset by an increase in loan origination costs of $1.4 million related to the second round of PPP funding. On a year-over-year basis, salaries and employee benefits expense decreased 3% from $42.5 million in the 2020 first quarter.

The Company’s efficiency ratio for the 2021 first quarter improved to 53.61% from 53.77% for the preceding fourth quarter and from 54.42% for the year-ago first quarter. Noninterest expense as a percentage of average assets improved to 1.65% for the 2021 first quarter from 1.69% for the 2020 fourth quarter and from 1.87% for the 2020 first quarter.

The effective tax rate for the 2021 first quarter was 24.2%, compared with 15.7% for the preceding fourth quarter and 19.9% in the year-ago first quarter. The Company noted that its effective tax rate for 2020 fourth quarter reflected a lower tax provision based on adjustments to applicable state apportionment factors.

Balance Sheet Summary

New loan originations funded during the 2021 first quarter totaled $847.1 million and included second round PPP funding of $304.7 million, traditional SBA loan production of $36.8 million and residential mortgage loan originations of $69.8 million. For the preceding 2020 fourth quarter, new loan originations funded totaled $844.2 million, including SBA loan production of $25.5 million, residential mortgage loan originations of $62.5 million and fundings related to two new warehouse mortgage lines of credit of $106.8 million. In the year-ago first quarter, new loan originations funded totaled $624.5 million, including SBA loan production of $49.8 million and residential mortgage loan originations of $37.4 million. There were no new warehouse mortgage lines of credit established in the 2021 and 2020 first quarters.

At March 31, 2021, loans receivable increased 1% to $13.70 billion from $13.56 billion at December 31, 2020 and increased 9% from $12.58 billion at March 31, 2020.

Total deposits at March 31, 2021 amounted to $14.30 billion, down slightly from $14.33 billion at December 31, 2020 but up 11% from $12.84 billion a year ago at March 31, 2020. Reflecting a continuing positive shift in the mix of deposits, noninterest bearing demand deposits increased 13% quarter-over-quarter and increased 80% year-over-year and accounted for 38%, 34% and 24% of total deposits at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

Following is the deposit composition as of March 31, 2021, December 31, 2020 and March 31, 2020:

(dollars in thousands) (unaudited)

3/31/2021

 

12/31/2020

 

% change

 

3/31/2020

 

% change

Noninterest bearing demand deposits

$

5,427,174

 

 

$

4,814,254

 

 

13

%

 

$

3,010,143

 

 

80

%

Money market and other

5,009,419

 

 

5,232,413

 

 

(4

)%

 

4,851,000

 

 

3

%

Saving deposits

305,326

 

 

300,770

 

 

2

%

 

272,577

 

 

12

%

Time deposits

3,559,350

 

 

3,986,475

 

 

(11

)%

 

4,702,847

 

 

(24

)%

Total deposit balances

$

14,301,269

 

 

$

14,333,912

 

 

%

 

$

12,836,567

 

 

11

%

Following is the deposit composition as a percentage of total deposits and a breakdown of cost of deposits as of and for the quarters ended March 31, 2021, December 31, 2020 and March 31, 2020:

 

Deposit Breakdown

 

Cost of Deposits

(dollars in thousands) (unaudited)

3/31/2021

 

12/31/2020

 

3/31/2020

 

Q1 2021

 

Q4 2020

 

Q1 2020

Noninterest bearing demand deposits

38.0

%

 

33.6

%

 

23.5

%

 

%

 

%

 

%

Money market and other

35.0

%

 

36.5

%

 

37.8

%

 

0.42

%

 

0.45

%

 

1.42

%

Saving deposits

2.1

%

 

2.1

%

 

2.1

%

 

1.17

%

 

1.17

%

 

1.19

%

Time deposits

24.9

%

 

27.8

%

 

36.6

%

 

0.69

%

 

0.98

%

 

2.09

%

Total deposit balances

100.0

%

 

100.0

%

 

100.0

%

 

0.36

%

 

0.48

%

 

1.34

%

Allowance for Credit Losses

The 2021 first quarter provision for credit losses under the CECL methodology was $3.3 million, compared with $27.5 million for the preceding fourth quarter and $28.0 million for the 2020 first quarter. The provision for credit losses for the 2021 first quarter reflects updated macroeconomic variables incorporating the Moody’s Analytics Consensus scenario that continue to show improving trends that support a strong economic recovery and taking into account the Company’s significant buildup in reserves in prior periods in consideration of the pandemic’s expected impact on its loan portfolio, as well as its low level of credit losses.

Following is the Allowance for Credit Losses as of March 31, 2021, December 31, 2020 and March 31, 2020:

(dollars in thousands) (unaudited)

3/31/2021

 

12/31/2020

 

3/31/2020

Allowance for credit losses

$

207,943

 

$

206,741

 

$

144,923

Allowance for credit loss/loans receivable

 

1.52

%

 

 

1.52

%

 

 

1.15

%

Allowance for credit losses/nonperforming loans

 

136.79

%

 

 

167.80

%

 

 

124.06

%

Credit Quality

Following are the components of nonperforming assets as of March 31, 2021, December 31, 2020 and March 31, 2020:

(dollars in thousands) (unaudited)

3/31/2021

 

12/31/2020

 

3/31/2020

Loans on nonaccrual status (1)

$

109,858

 

 

$

85,238

 

 

$

72,639

 

Delinquent loans 90 days or more on accrual status

 

384

 

 

 

614

 

 

 

387

 

Accruing troubled debt restructured loans

 

41,773

 

 

 

37,354

 

 

 

43,789

 

Total nonperforming loans

 

152,015

 

 

 

123,206

 

 

 

116,815

 

Other real estate owned

 

18,515

 

 

 

20,121

 

 

 

23,039

 

Total nonperforming assets

$

170,530

 

 

$

143,327

 

 

$

139,854

 

(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $25.0 million, $26.5 million and $28.8 million, at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

The $24.6 million increase in loans on nonaccrual status largely reflects the addition of a $23.5 million retail commercial real estate loan. The Company noted that this was a unique situation due to the borrower’s involvement in a legal dispute and not reflective of any systemic deterioration for these property types.

Following are the components of criticized loan balances as of March 31, 2021, December 31, 2020 and March 31, 2020:

(dollars in thousands) (unaudited)

3/31/2021

 

12/31/2020

 

3/31/2020

Special Mention

$

280,974

 

$

184,941

 

$

122,279

Classified

 

379,048

 

 

366,557

 

 

278,783

Criticized

$

660,022

 

$

551,498

 

$

401,062

The increase in criticized loans quarter-over-quarter primarily reflects downgrades in the Company’s hotel/motel portfolio to the Special Mention category. The Company noted that the performance of these loans was consistent with expectations when reserves were increased in 2020 and that no new issues for these borrowers have emerged.

Net charge offs in the 2021 first quarter totaled $2.1 million, or 0.06% of average loans receivable on an annualized basis. This compares with net charge offs of $608,000, or 0.02% of average loans receivable on an annualized basis for the 2020 fourth quarter and $3.4 million, or 0.11% of average loans receivable on an annualized basis for the 2020 first quarter.

Capital

At March 31, 2021, the Company and the Bank continued to exceed all regulatory capital requirements to be classified as a “well-capitalized” financial institution. Following are capital ratios for the Company as of March 31, 2021, December 31, 2020 and March 31, 2020:

Hope Bancorp, Inc. (unaudited)

3/31/2021

 

12/31/2020

 

3/31/2020

 

Minimum Guideline

for “Well-Capitalized”

Bank

Common Equity Tier 1 Capital

11.08

%

 

10.94

%

 

11.44

%

 

6.50

%

Tier 1 Leverage Ratio

10.15

%

 

10.22

%

 

10.88

%

 

5.00

%

Tier 1 Risk-Based Ratio

11.78

%

 

11.64

%

 

12.19

%

 

8.00

%

Total Risk-Based Ratio

13.03

%

 

12.87

%

 

13.08

%

 

10.00

%

Following are tangible common equity (“TCE”) per share and TCE as a percentage of tangible assets as of March 31, 2021, December 31, 2020 and March 31, 2020:

(unaudited)

3/31/2021

 

12/31/2020

 

3/31/2020

Tangible common equity per share (1)

$

12.73

 

 

$

12.81

 

 

$

12.52

 

Tangible common equity to tangible assets (2)

 

9.40

%

 

 

9.50

%

 

 

9.92

%

(1) Tangible common equity represents common equity less goodwill and net other intangible assets. Tangible common equity per share represents tangible common equity divided by the number of shares issued and outstanding. Both tangible common equity and tangible common equity per share are non-GAAP financial measures. A reconciliation of the Company’s total stockholders’ equity to tangible common equity is provided in the accompanying financial information on Table Page 9.

(2) Tangible assets represent total assets less goodwill and net other intangible assets. Tangible common equity to tangible assets is the ratio of tangible common equity over tangible assets. Tangible common equity to tangible assets is a non-GAAP financial measure. A reconciliation of the Company’s total assets to tangible assets is provided in the accompanying financial information on Table Page 9.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Wednesday, April 28, 2021 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2021. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through May 5, 2021, replay access code 10154357.

About Hope Bancorp, Inc.

Hope Bancorp, Inc. is the holding company of Bank of Hope, the first and only super regional Korean-American bank in the United States with $17.2 billion in total assets as of March 31, 2021. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 53 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.

Forward-Looking Statements

Some statements in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market and statements regarding our business strategies, objectives and vision. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company’s allowances for credit losses, regulatory risks associated with current and future regulations; and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company’s most recent Annual Report on Form 10-K. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Hope Bancorp, Inc.

Selected Financial Data

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

 

Assets:

3/31/2021

 

12/31/2020

 

% change

 

3/31/2020

 

% change

Cash and due from banks

$

376,666

 

 

 

$

350,579

 

 

 

7

%

 

$

802,033

 

 

 

(53

)%

Securities available for sale, at fair value

2,233,744

 

 

 

2,285,611

 

 

 

(2

)%

 

1,718,702

 

 

 

30

%

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

102,242

 

 

 

105,591

 

 

 

(3

)%

 

96,956

 

 

 

5

%

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

19,672

 

 

 

17,743

 

 

 

11

%

 

8,281

 

 

 

138

%

Loans receivable

13,702,629

 

 

 

13,563,213

 

 

 

1

%

 

12,583,416

 

 

 

9

%

Allowance for credit losses

(207,943

)

 

 

(206,741

)

 

 

1

%

 

(144,923

)

 

 

43

%

Net loans receivable

13,494,686

 

 

 

13,356,472

 

 

 

1

%

 

12,438,493

 

 

 

8

%

Accrued interest receivable

60,498

 

 

 

59,430

 

 

 

2

%

 

30,450

 

 

 

99

%

Premises and equipment, net

47,918

 

 

 

48,409

 

 

 

(1

)%

 

51,392

 

 

 

(7

)%

Bank owned life insurance

77,089

 

 

 

76,765

 

 

 

%

 

76,429

 

 

 

1

%

Goodwill

464,450

 

 

 

464,450

 

 

 

%

 

464,450

 

 

 

%

Servicing assets

12,084

 

 

 

12,692

 

 

 

(5

)%

 

14,847

 

 

 

(19

)%

Other intangible assets, net

9,198

 

 

 

9,708

 

 

 

(5

)%

 

11,302

 

 

 

(19

)%

Other assets

300,613

 

 

 

319,214

 

 

 

(6

)%

 

308,099

 

 

 

(2

)%

Total assets

$

17,198,860

 

 

 

$

17,106,664

 

 

 

1

%

 

$

16,021,434

 

 

 

7

%

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Deposits

$

14,301,269

 

 

 

$

14,333,912

 

 

 

%

 

$

12,836,567

 

 

 

11

%

FHLB advances

400,000

 

 

 

250,000

 

 

 

60

%

 

675,000

 

 

 

(41

)%

Convertible notes, net

215,504

 

 

 

204,565

 

 

 

5

%

 

200,716

 

 

 

7

%

Subordinated debentures

104,469

 

 

 

104,178

 

 

 

%

 

103,318

 

 

 

1

%

Accrued interest payable

8,611

 

 

 

14,706

 

 

 

(41

)%

 

30,436

 

 

 

(72

)%

Other liabilities

123,426

 

 

 

145,558

 

 

 

(15

)%

 

157,309

 

 

 

(22

)%

Total liabilities

$

15,153,279

 

 

 

$

15,052,919

 

 

 

1

%

 

$

14,003,346

 

 

 

8

%

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

 

 

Common stock, $0.001 par value

$

136

 

 

 

$

136

 

 

 

%

 

$

136

 

 

 

%

Capital surplus

1,417,137

 

 

 

1,434,916

 

 

 

(1

)%

 

1,429,275

 

 

 

(1

)%

Retained earnings

823,085

 

 

 

785,940

 

 

 

5

%

 

752,228

 

 

 

9

%

Treasury stock, at cost

(200,000

)

 

 

(200,000

)

 

 

%

 

(200,000

)

 

 

%

Accumulated other comprehensive gain, net

5,223

 

 

 

32,753

 

 

 

(84

)%

 

36,449

 

 

 

(86

)%

Total stockholders’ equity

2,045,581

 

 

 

2,053,745

 

 

 

%

 

2,018,088

 

 

 

1

%

Total liabilities and stockholders’ equity

$

17,198,860

 

 

 

$

17,106,664

 

 

 

1

%

 

$

16,021,434

 

 

 

7

%

 

 

 

 

 

 

 

 

 

 

Common stock shares - authorized

150,000,000

 

 

 

150,000,000

 

 

 

 

 

150,000,000

 

 

 

 

Common stock shares - outstanding

123,480,494

 

 

 

123,264,864

 

 

 

 

 

123,169,404

 

 

 

 

Treasury stock shares

12,661,581

 

 

 

12,661,581

 

 

 

 

 

12,661,581

 

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

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

 

 

Three Months Ended

 

3/31/2021

 

12/31/2020

 

% change

 

3/31/2020

 

% change

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

129,736

 

 

$

132,117

 

 

 

(2

)%

 

$

154,230

 

 

(16

)%

Interest on securities

7,915

 

 

9,014

 

 

 

(12

)%

 

10,609

 

 

(25

)%

Interest on federal funds sold and other investments

642

 

 

598

 

 

 

7

%

 

2,029

 

 

(68

)%

Total interest income

138,293

 

 

141,729

 

 

 

(2

)%

 

166,868

 

 

(17

)%

 

 

 

 

 

 

 

 

 

 

Interest on deposits

12,770

 

 

16,934

 

 

 

(25

)%

 

41,113

 

 

(69

)%

Interest on other borrowings and convertible notes

2,944

 

 

4,039

 

 

 

(27

)%

 

6,464

 

 

(54

)%

Total interest expense

15,714

 

 

20,973

 

 

 

(25

)%

 

47,577

 

 

(67

)%

 

 

 

 

 

 

 

 

 

 

Net interest income before provision for credit losses

122,579

 

 

120,756

 

 

 

2

%

 

119,291

 

 

3

%

Provision for credit losses

3,300

 

 

27,500

 

 

 

(88

)%

 

28,000

 

 

(88

)%

Net interest income after provision for credit losses

119,279

 

 

93,256

 

 

 

28

%

 

91,291

 

 

31

%

 

 

 

 

 

 

 

 

 

 

Service fees on deposit accounts

1,790

 

 

2,991

 

 

 

(40

)%

 

4,133

 

 

(57

)%

International service fees

841

 

 

696

 

 

 

21

%

 

790

 

 

6

%

Loan servicing fees, net

1,044

 

 

566

 

 

 

84

%

 

365

 

 

186

%

Wire transfer fees

844

 

 

867

 

 

 

(3

)%

 

998

 

 

(15

)%

Net gains on sales of other loans

2,096

 

 

1,618

 

 

 

30

%

 

1,855

 

 

13

%

Other income and fees

2,189

 

 

4,677

 

 

 

(53

)%

 

5,123

 

 

(57

)%

Total noninterest income

8,804

 

 

11,415

 

 

 

(23

)%

 

13,264

 

 

(34

)%

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

41,216

 

 

40,911

 

 

 

1

%

 

42,502

 

 

(3

)%

Occupancy

6,967

 

 

7,200

 

 

 

(3

)%

 

7,410

 

 

(6

)%

Furniture and equipment

4,186

 

 

4,122

 

 

 

2

%

 

4,259

 

 

(2

)%

Advertising and marketing

1,625

 

 

1,695

 

 

 

(4

)%

 

1,673

 

 

(3

)%

Data processing and communications

2,737

 

 

2,235

 

 

 

22

%

 

2,631

 

 

4

%

Professional fees

2,903

 

 

1,847

 

 

 

57

%

 

3,300

 

 

(12

)%

FDIC assessment

1,255

 

 

1,166

 

 

 

8

%

 

1,559

 

 

(19

)%

Credit related expenses

2,218

 

 

2,001

 

 

 

11

%

 

1,662

 

 

33

%

OREO expense (income), net

281

 

 

(86

)

 

 

N/A

 

843

 

 

(67

)%

Branch restructuring costs

 

 

2,367

 

 

 

(100

)%

 

 

 

%

Other

7,043

 

 

7,605

 

 

 

(7

)%

 

6,301

 

 

12

%

Total noninterest expense

70,431

 

 

71,063

 

 

 

(1

)%

 

72,140

 

 

(2

)%

Income before income taxes

57,652

 

 

33,608

 

 

 

72

%

 

32,415

 

 

78

%

Income tax provision

13,965

 

 

5,289

 

 

 

164

%

 

6,462

 

 

116

%

Net income

$

43,687

 

 

$

28,319

 

 

 

54

%

 

$

25,953

 

 

68

%

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share:

 

 

 

 

 

 

 

 

 

Basic

$

0.35

 

 

$

0.23

 

 

 

 

 

$

0.21

 

 

 

Diluted

$

0.35

 

 

$

0.23

 

 

 

 

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding:

 

 

 

 

 

 

 

 

 

Basic

123,324,745

 

 

123,264,172

 

 

 

 

 

124,295,327

 

 

 

Diluted

124,336,130

 

 

123,874,229

 

 

 

 

 

124,676,296

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

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

 

 

 

 

 

 

 

For the Three Months Ended

(Annualized)

Profitability measures:

3/31/2021

 

12/31/2020

 

3/31/2020

ROA

1.02

%

 

0.67

%

 

0.67

%

ROE

8.53

%

 

5.54

%

 

5.12

%

ROTCE (1)

11.11

%

 

7.21

%

 

6.69

%

Net interest margin

3.06

%

 

3.02

%

 

3.31

%

Efficiency ratio

53.61

%

 

53.77

%

 

54.42

%

Noninterest expense / average assets

1.65

%

 

1.69

%

 

1.87

%

(1) Average tangible equity is calculated by subtracting average goodwill and average core deposit intangible assets from average stockholders’ equity. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position.

 

Three Months Ended

Pre-tax acquisition accounting adjustments:

3/31/2021

 

12/31/2020

 

3/31/2020

Accretion on purchased non-impaired loans

$

705

 

 

$

452

 

 

$

1,059

 

Accretion on purchased credit deteriorated/purchased credit impaired loans

2,255

 

 

3,064

 

 

9,449

 

Amortization of premium on low income housing tax credits

(73

)

 

(71

)

 

(71

)

Accretion of discount on acquired subordinated debt

(290

)

 

(289

)

 

(283

)

Amortization of core deposit intangibles

(509

)

 

(531

)

 

(531

)

Total acquisition accounting adjustments

$

2,088

 

 

$

2,625

 

 

$

9,623

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

 

Three Months Ended

 

3/31/2021

 

12/31/2020

 

3/31/2020

 

 

 

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

$

13,346,264

 

 

$

129,736

 

 

3.94

%

 

$

13,046,443

 

 

$

132,117

 

 

4.03

%

 

$

12,259,848

 

 

$

154,230

 

 

5.06

%

Securities available for sale

2,267,409

 

 

7,915

 

 

1.42

%

 

2,123,025

 

 

9,014

 

 

1.69

%

 

1,712,033

 

 

10,609

 

 

2.49

%

FHLB stock and other investments

640,392

 

 

642

 

 

0.41

%

 

749,281

 

 

598

 

 

0.32

%

 

519,309

 

 

2,029

 

 

1.57

%

Total interest earning assets

$

16,254,065

 

 

$

138,293

 

 

3.45

%

 

$

15,918,749

 

 

$

141,729

 

 

3.54

%

 

$

14,491,190

 

 

$

166,868

 

 

4.63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST BEARING LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand, interest bearing

$

5,256,579

 

 

$

5,490

 

 

0.42

%

 

$

4,910,649

 

 

$

5,541

 

 

0.45

%

 

$

4,204,406

 

 

$

14,880

 

 

1.42

%

Savings

301,184

 

 

870

 

 

1.17

%

 

305,341

 

 

898

 

 

1.17

%

 

274,075

 

 

808

 

 

1.19

%

Time deposits

3,767,109

 

 

6,410

 

 

0.69

%

 

4,240,500

 

 

10,495

 

 

0.98

%

 

4,900,405

 

 

25,425

 

 

2.09

%

Total interest bearing deposits

9,324,872

 

 

12,770

 

 

0.56

%

 

9,456,490

 

 

16,934

 

 

0.71

%

 

9,378,886

 

 

41,113

 

 

1.76

%

FHLB advances

215,889

 

 

642

 

 

1.21

%

 

204,900

 

 

657

 

 

1.28

%

 

594,890

 

 

2,647

 

 

1.79

%

Convertible notes, net

215,002

 

 

1,322

 

 

2.46

%

 

203,807

 

 

2,383

 

 

4.58

%

 

199,960

 

 

2,346

 

 

4.64

%

Subordinated debentures

100,392

 

 

980

 

 

3.90

%

 

100,118

 

 

999

 

 

3.90

%

 

99,252

 

 

1,471

 

 

5.86

%

Total interest bearing liabilities

$

9,856,155

 

 

$

15,714

 

 

0.65

%

 

$

9,965,315

 

 

$

20,973

 

 

0.84

%

 

$

10,272,988

 

 

$

47,577

 

 

1.86

%

Noninterest bearing demand deposits

5,052,532

 

 

 

 

 

 

4,637,584

 

 

 

 

 

 

2,963,136

 

 

 

 

 

Total funding liabilities/cost of funds

$

14,908,687

 

 

 

 

0.43

%

 

$

14,602,899

 

 

 

 

0.57

%

 

$

13,236,124

 

 

 

 

1.45

%

Net interest income/net interest spread

 

 

$

122,579

 

 

2.80

%

 

 

 

$

120,756

 

 

2.70

%

 

 

 

$

119,291

 

 

2.77

%

Net interest margin

 

 

 

 

3.06

%

 

 

 

 

 

3.02

%

 

 

 

 

 

3.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing demand deposits

$

5,052,532

 

 

$

 

 

%

 

$

4,637,584

 

 

$

 

 

%

 

$

2,963,136

 

 

$

 

 

%

Interest bearing deposits

9,324,872

 

 

12,770

 

 

0.56

%

 

9,456,490

 

 

16,934

 

 

0.71

%

 

9,378,886

 

 

41,113

 

 

1.76

%

Total deposits

$

14,377,404

 

 

$

12,770

 

 

0.36

%

 

$

14,094,074

 

 

$

16,934

 

 

0.48

%

 

$

12,342,022

 

 

$

41,113

 

 

1.34

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

 

 

Three Months Ended

AVERAGE BALANCES:

3/31/2021

 

12/31/2020

 

% change

 

3/31/2020

 

% change

Loans receivable, including loans held for sale

$

13,346,264

 

 

 

$

13,046,443

 

 

 

2

%

 

$

12,259,848

 

 

 

9

%

Investments

2,907,801

 

 

 

2,872,306

 

 

 

1

%

 

2,231,342

 

 

 

30

%

Interest earning assets

16,254,065

 

 

 

15,918,749

 

 

 

2

%

 

14,491,190

 

 

 

12

%

Total assets

17,115,407

 

 

 

16,824,700

 

 

 

2

%

 

15,446,807

 

 

 

11

%

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

9,324,872

 

 

 

9,456,490

 

 

 

(1

)%

 

9,378,886

 

 

 

(1

)%

Interest bearing liabilities

9,856,155

 

 

 

9,965,315

 

 

 

(1

)%

 

10,272,988

 

 

 

(4

)%

Noninterest bearing demand deposits

5,052,532

 

 

 

4,637,584

 

 

 

9

%

 

2,963,136

 

 

 

71

%

Stockholders’ equity

2,047,506

 

 

 

2,045,959

 

 

 

%

 

2,027,595

 

 

 

1

%

Net interest earning assets

6,397,910

 

 

 

5,953,434

 

 

 

7

%

 

4,218,202

 

 

 

52

%

 

 

 

 

 

 

 

 

 

 

LOAN PORTFOLIO COMPOSITION:

3/31/2021

 

12/31/2020

 

% change

 

3/31/2020

 

% change

Commercial loans

$

4,346,244

 

 

 

$

4,157,787

 

 

 

5

%

 

$

3,067,132

 

 

 

42

%

Real estate loans

8,811,423

 

 

 

8,772,134

 

 

 

%

 

8,681,222

 

 

 

1

%

Consumer and other loans

544,962

 

 

 

633,292

 

 

 

(14

)%

 

835,062

 

 

 

(35

)%

Loans, net of deferred loan fees and costs

13,702,629

 

 

 

13,563,213

 

 

 

1

%

 

12,583,416

 

 

 

9

%

Allowance for credit losses

(207,943

)

 

 

(206,741

)

 

 

1

%

 

(144,923

)

 

 

43

%

Loan receivable, net

$

13,494,686

 

 

 

$

13,356,472

 

 

 

1

%

 

$

12,438,493

 

 

 

8

%

 

 

 

 

 

 

 

 

 

 

REAL ESTATE LOANS BY PROPERTY TYPE:

3/31/2021

 

12/31/2020

 

% change

 

3/31/2020

 

% change

Retail buildings

$

2,317,017

 

 

 

$

2,293,396

 

 

 

1

%

 

$

2,314,885

 

 

 

%

Hotels/motels

1,619,661

 

 

 

1,634,287

 

 

 

(1

)%

 

1,706,082

 

 

 

(5

)%

Gas stations/car washes

913,176

 

 

 

892,110

 

 

 

2

%

 

852,077

 

 

 

7

%

Mixed-use facilities

752,729

 

 

 

750,867

 

 

 

%

 

770,825

 

 

 

(2

)%

Warehouses

1,092,549

 

 

 

1,091,389

 

 

 

%

 

1,024,832

 

 

 

7

%

Multifamily

531,306

 

 

 

518,498

 

 

 

2

%

 

481,425

 

 

 

10

%

Other

1,584,985

 

 

 

1,591,587

 

 

 

%

 

1,531,096

 

 

 

4

%

Total

$

8,811,423

 

 

 

$

8,772,134

 

 

 

%

 

$

8,681,222

 

 

 

1

%

 

 

 

 

 

 

 

 

 

 

DEPOSIT COMPOSITION

3/31/2021

 

12/31/2020

 

% change

 

3/31/2020

 

% change

Noninterest bearing demand deposits

$

5,427,174

 

 

 

$

4,814,254

 

 

 

13

%

 

$

3,010,143

 

 

 

80

%

Money market and other

5,009,419

 

 

 

5,232,413

 

 

 

(4

)%

 

4,851,000

 

 

 

3

%

Saving deposits

305,326

 

 

 

300,770

 

 

 

2

%

 

272,577

 

 

 

12

%

Time deposits

3,559,350

 

 

 

3,986,475

 

 

 

(11

)%

 

4,702,847

 

 

 

(24

)%

Total deposit balances

$

14,301,269

 

 

 

$

14,333,912

 

 

 

%

 

$

12,836,567

 

 

 

11

%

 

 

 

 

 

 

 

 

 

 

DEPOSIT COMPOSITION (%)

3/31/2021

 

12/31/2020

 

 

 

3/31/2020

 

 

Noninterest bearing demand deposits

38.0

 

%

 

33.6

 

%

 

 

 

23.5

 

%

 

 

Money market and other

35.0

 

%

 

36.5

 

%

 

 

 

37.8

 

%

 

 

Saving deposits

2.1

 

%

 

2.1

 

%

 

 

 

2.1

 

%

 

 

Time deposits

24.9

 

%

 

27.8

 

%

 

 

 

36.6

 

%

 

 

Total deposit balances

100.0

 

%

 

100.0

 

%

 

 

 

100.0

 

%

 

 

 

 

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

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

 

CAPITAL RATIOS:

3/31/2021

 

12/31/2020

 

3/31/2020

 

 

 

 

Total stockholders’ equity

$

2,045,581

 

 

$

2,053,745

 

 

$

2,018,088

 

 

 

 

 

Common equity tier 1 ratio

11.08

%

 

10.94

%

 

11.44

%

 

 

 

 

Tier 1 risk-based capital ratio

11.78

%

 

11.64

%

 

12.19

%

 

 

 

 

Total risk-based capital ratio

13.03

%

 

12.87

%

 

13.08

%

 

 

 

 

Tier 1 leverage ratio

10.15

%

 

10.22

%

 

10.88

%

 

 

 

 

Total risk weighted assets

$

14,338,828

 

 

$

14,341,456

 

 

$

13,348,162

 

 

 

 

 

Book value per common share

$

16.57

 

 

$

16.66

 

 

$

16.38

 

 

 

 

 

Tangible common equity to tangible assets 1

9.40

%

 

9.50

%

 

9.92

%

 

 

 

 

Tangible common equity per share 1

$

12.73

 

 

$

12.81

 

 

$

12.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and core deposit intangible assets, net divided by total assets less goodwill and core deposit intangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company’s capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital.

 

 

 

Three Months Ended

ALLOWANCE FOR CREDIT LOSSES CHANGES:

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

Balance at beginning of period

$

206,741

 

 

$

179,849

 

 

$

161,771

 

 

$

144,923

 

 

$

94,144

 

CECL day 1 adoption impact

 

 

 

 

 

 

 

 

26,200

 

Provision for credit losses

3,300

 

 

27,500

 

 

22,000

 

 

17,500

 

 

28,000

 

Recoveries

1,423

 

 

2,207

 

 

2,428

 

 

252

 

 

2,536

 

Charge offs

(3,521

)

 

(2,815

)

 

(6,350

)

 

(904

)

 

(5,957

)

Balance at end of period

$

207,943

 

 

$

206,741

 

 

$

179,849

 

 

$

161,771

 

 

$

144,923

 

Net charge offs/average loans receivable (annualized)

0.06

%

 

0.02

%

 

0.12

%

 

0.02

%

 

0.11

%

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

NET LOAN CHARGE OFFS (RECOVERIES):

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

Real estate loans

$

2,234

 

 

$

(726

)

 

$

5,154

 

 

$

148

 

 

$

2,230

 

Commercial loans

(80

)

 

1,167

 

 

(1,451

)

 

240

 

 

676

 

Consumer loans

(56

)

 

167

 

 

219

 

 

264

 

 

515

 

Total net charge offs

$

2,098

 

 

$

608

 

 

$

3,922

 

 

$

652

 

 

$

3,421

 

 

 

 

 

 

 

 

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

NONPERFORMING ASSETS:

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

Loans on nonaccrual status 3

$

109,858

 

 

$

85,238

 

 

$

69,205

 

 

$

82,137

 

 

$

72,639

 

Delinquent loans 90 days or more on accrual status

384

 

 

614

 

 

1,537

 

 

430

 

 

387

 

Accruing troubled debt restructured loans

41,773

 

 

37,354

 

 

35,429

 

 

44,026

 

 

43,789

 

Total nonperforming loans

152,015

 

 

123,206

 

 

106,171

 

 

126,593

 

 

116,815

 

Other real estate owned

18,515

 

 

20,121

 

 

18,410

 

 

20,983

 

 

23,039

 

Total nonperforming assets

$

170,530

 

 

$

143,327

 

 

$

124,581

 

 

$

147,576

 

 

$

139,854

 

Nonperforming assets/total assets

0.99

%

 

0.84

%

 

0.74

%

 

0.86

%

 

0.87

%

Nonperforming assets/loans receivable & OREO

1.24

%

 

1.06

%

 

0.95

%

 

1.14

%

 

1.11

%

Nonperforming assets/total capital

8.34

%

 

6.98

%

 

6.11

%

 

7.27

%

 

6.93

%

Nonperforming loans/loans receivable

1.11

%

 

0.91

%

 

0.81

%

 

0.98

%

 

0.93

%

Nonaccrual loans/loans receivable

0.80

%

 

0.63

%

 

0.53

%

 

0.64

%

 

0.58

%

Allowance for credit losses/loans receivable

1.52

%

 

1.52

%

 

1.37

%

 

1.26

%

 

1.15

%

Allowance for credit losses/nonaccrual loans

189.28

%

 

242.55

%

 

259.88

%

 

196.95

%

 

199.51

%

Allowance for credit losses/nonperforming loans

136.79

%

 

167.80

%

 

169.40

%

 

127.79

%

 

124.06

%

Allowance for credit losses/nonperforming assets

121.94

%

 

144.24

%

 

144.36

%

 

109.62

%

 

103.62

%

 

 

 

 

 

 

 

 

 

 

3 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $25.0 million, $26.5 million, $26.2 million, $30.3 million, and $28.8 million at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONACCRUAL LOANS BY TYPE:

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

Real estate loans

$

91,940

 

 

$

67,450

 

 

$

51,739

 

 

$

64,060

 

 

$

56,787

 

Commercial loans

14,080

 

 

13,911

 

 

13,022

 

 

12,079

 

 

12,747

 

Consumer loans

3,838

 

 

3,877

 

 

4,444

 

 

5,998

 

 

3,105

 

Total nonaccrual loans

$

109,858

 

 

$

85,238

 

 

$

69,205

 

 

$

82,137

 

 

$

72,639

 

 

 

 

 

 

 

 

 

 

 

BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

Retail buildings

$

6,319

 

 

$

5,408

 

 

$

5,451

 

 

$

5,526

 

 

$

5,014

 

Gas stations/car washes

210

 

 

219

 

 

224

 

 

1,789

 

 

1,675

 

Mixed-use facilities

3,377

 

 

3,521

 

 

4,323

 

 

3,583

 

 

3,157

 

Warehouses

14,124

 

 

7,296

 

 

7,320

 

 

13,433

 

 

13,381

 

Other 5

17,743

 

 

20,910

 

 

18,111

 

 

19,695

 

 

20,562

 

Total

$

41,773

 

 

$

37,354

 

 

$

35,429

 

 

$

44,026

 

 

$

43,789

 

5 Includes commercial business, consumer, and other loans

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

30 - 59 days

$

18,175

 

 

$

11,347

 

 

$

5,962

 

 

$

18,857

 

 

$

37,866

 

60 - 89 days

8,314

 

 

16,826

 

 

58,065

 

 

29,975

 

 

2,605

 

Total

$

26,489

 

 

$

28,173

 

 

$

64,027

 

 

$

48,832

 

 

$

40,471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

Real estate loans

$

18,331

 

 

$

15,689

 

 

$

60,510

 

 

$

27,245

 

 

$

23,753

 

Commercial loans

1,002

 

 

3,393

 

 

624

 

 

5,987

 

 

4,583

 

Consumer loans

7,156

 

 

9,091

 

 

2,893

 

 

15,600

 

 

12,135

 

Total

$

26,489

 

 

$

28,173

 

 

$

64,027

 

 

$

48,832

 

 

$

40,471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CRITICIZED LOANS:

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

Special mention

$

280,974

 

 

$

184,941

 

 

$

153,388

 

 

$

127,149

 

 

$

122,279

 

Substandard

379,048

 

 

366,556

 

 

311,902

 

 

299,357

 

 

278,771

 

Doubtful/Loss

 

 

1

 

 

6,640

 

 

11

 

 

12

 

Total criticized loans

$

660,022

 

 

$

551,498

 

 

$

471,930

 

 

$

426,517

 

 

$

401,062

 

Hope Bancorp, Inc.

Selected Financial Data

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

 

Reconciliation of GAAP financial measures to non-GAAP financial measures

Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. A reconciliation of the GAAP to non-GAAP financial measures utilized by management is provided below.

 

 

 

 

 

 

 

Three Months Ended

 

3/31/2021

 

12/31/2020

 

3/31/2020

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

 

 

 

 

 

Average stockholders’ equity

$

2,047,506

 

 

$

2,045,959

 

 

$

2,027,595

 

Less: Goodwill and core deposit intangible assets, net

(473,961

)

 

(474,467

)

 

(476,053

)

Average tangible common equity

$

1,573,545

 

 

$

1,571,492

 

 

$

1,551,542

 

 

 

 

 

 

 

Net income

$

43,687

 

 

$

28,319

 

 

$

25,953

 

Return on average tangible common equity (annualized)

11.11

%

 

7.21

%

 

6.69

%

 

 

 

 

 

 

 

Three Months Ended

 

3/31/2021

 

12/31/2020

 

3/31/2020

TANGIBLE COMMON EQUITY

 

 

 

 

 

Total stockholders’ equity

$

2,045,581

 

 

$

2,053,745

 

 

$

2,018,088

 

Less: Goodwill and core deposit intangible assets, net

(473,648

)

 

(474,158

)

 

(475,752

)

Tangible common equity

$

1,571,933

 

 

$

1,579,587

 

 

$

1,542,336

 

 

 

 

 

 

 

Total assets

$

17,198,860

 

 

$

17,106,664

 

 

$

16,021,434

 

Less: Goodwill and core deposit intangible assets, net

(473,648

)

 

(474,158

)

 

(475,752

)

Tangible assets

$

16,725,212

 

 

$

16,632,506

 

 

$

15,545,682

 

 

 

 

 

 

 

Common shares outstanding

123,480,494

 

 

123,264,864

 

 

123,169,404

 

 

 

 

 

 

 

Tangible common equity to tangible assets

9.40

%

 

9.50

%

 

9.92

%

Tangible common equity per share

$

12.73

 

 

$

12.81

 

 

$

12.52

 

 

Three Months Ended

 

3/31/2021

 

12/31/2020

 

3/31/2020

PRE-TAX PRE-PROVISION INCOME

 

 

 

 

 

Net income

$

43,687

 

 

$

28,319

 

 

$

25,953

 

Add back - tax provision

13,965

 

 

5,289

 

 

6,462

 

Add back - provision for credit losses

3,300

 

 

27,500

 

 

28,000

 

Pre-tax pre-provision income

$

60,952

 

 

$

61,108

 

 

$

60,415

 

 

 

 

 

 

 

 

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