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Section 1: 8-K (8-K)

Document




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

Date of Report (Date of earliest event reported): July 17, 2018

HOPE BANCORP, INC.
(Exact name of registrant as specified in its charter)
Delaware
000-50245
95-4849715
(State or other jurisdiction
(Commission File Number)
(IRS Employer Identification No.)
of incorporation)
 
 
3200 Wilshire Blvd, Suite 1400, Los Angeles, CA
90010
(Address of principal executive offices)
(Zip Code)

Registrant’s telephone number, including area code: (213) 639-1700.

(Former name or former address, if changed since last report.)

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))

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 July 17, 2018, Hope Bancorp, Inc. (“HOPE” or the “Company”) issued a news release concerning its results of operations and financial condition for the three- and six-month periods ended and as of June 30, 2018. A copy of the July 17, 2018 press release is attached hereto as Exhibit 99.1.

Item 8.01 Other Events.
 
On July 17, 2018, Hope Bancorp, Inc. (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 August 10, 2018 to all stockholders of record as of the close of business on July 27, 2018. A copy of the July 17, 2018 press release is attached hereto as Exhibit 99.2.

Item 7.01. Regulation FD Disclosure

The Company previously announced that it will host an investor conference call on Wednesday, July 18, 2018 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its three-and six-month periods ended June 30, 2018. A presentation to accompany the conference call, which contains certain historical and forward-looking information relating to the Company (the “Presentation Materials”), has been made available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. A copy of the Presentation Materials is attached hereto as Exhibit 99.3.

The information included in this report pursuant to Item 2.02, Item 8.01 and Item 7.01 of Form 8-K (including Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.


Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.         Description of Exhibit

        
99.1
News release, dated July 17, 2018, concerning the results of operations and financial condition for the first quarter ended and as of June 30, 2018.
99.2
News release, dated July 17, 2018 announcing the declaration of a quarterly cash dividend.
99.3
Presentation Materials, dated July 18, 2018.















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.

 
Hope Bancorp, Inc.
 
 
 
 
Date: July 18, 2018
/s/ Kevin S. Kim
 
Name: Kevin S. Kim
 
Title: President and Chief Executive Officer








EXHIBIT INDEX


Exhibit No.         Description of Exhibit


99.1
News release, dated July 17, 2018, concerning the results of operations and financial condition for the first quarter ended and as of June 30, 2018.
99.2
News release, dated July 17, 2018 announcing the declaration of a quarterly cash dividend.
99.3
Presentation Materials, dated July 18, 2018.




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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
394269167_hopebancorp5.jpg
News Release


HOPE BANCORP REPORTS 2018 SECOND QUARTER FINANCIAL RESULTS

Q2 2018 Highlights:
New loan disbursements of $792.3 million, with more diversified mix of CRE, C&I and consumer loans
Loans receivable of $11.67 billion reflects a 3% increase over Q1 2018
Total deposits of $11.73 billion reflects a 2% increase over Q1 2018
Total assets increase to $14.87 billion, up 3% over Q1 2018
Q2 net income totals $47.5 million, or $0.36 per diluted common share
Improved asset quality with nonperforming loans down 7% linked quarter and net recoveries of $1.1 million
Completed $217.5 million convertible senior notes offering
Share repurchases totaling $79.0 million reduces shares outstanding by 4.4 million shares

LOS ANGELES - July 17, 2018 - Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for the three and six months ended June 30, 2018. Net income for the 2018 second quarter totaled $47.5 million, or $0.36 per diluted common share, based on 133,352,841 weighted averaged diluted common shares outstanding. This compares with net income for the 2018 first quarter of $51.2 million, or $0.38 per diluted common share, based on 135,815,262 weighted averaged diluted common shares outstanding. For the 2017 second quarter, net income totaled $40.7 million, or $0.30 per diluted common share, based on 135,613,181 weighted averaged diluted common shares outstanding.

As previously announced on May 11, 2018, the Company completed the sale of $200 million aggregate principal amount of 2.00% convertible senior notes due 2038 (the “Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The initial purchaser of the Notes exercised in part its over-allotment option and purchased an additional $17.5 million aggregate principal amount of the Notes. In aggregate, the Company received net proceeds from the offering of approximately $213.15 million, after deducting the initial purchaser’s discount but before estimated offering expenses payable by the Company.

Under the board approved share repurchase program to buy back up to $100 million of its common stock, the Company repurchased an aggregate $79.0 million of its common stock at an average repurchase price of $18.10 through June 30, 2018, thereby reducing the number of shares outstanding by 4,361,740 shares. More detailed information regarding the Notes offering and share repurchase program may be accessed in the Company’s Form 8-Ks furnished to the SEC on May 7, 2018, May 9, 2018, May 11, 2018 and June 8, 2018.

“This was a solid quarter for Bank of Hope with positive performance on nearly all fronts,” said Kevin S. Kim, President and Chief Executive Officer. “Loan originations of $792 million were strong again this quarter, and we continued to see a more balanced mix with commercial real estate loans accounting for 41%, C&I 36% and consumer 23% of new loan production. Loans receivable increased by 13% on an annualized basis, and all of the growth came in our C&I and consumer portfolios. While deposit pricing continues to be a challenge in the current environment, the strong loan growth and higher average loan yields largely offset the impact of rising deposit costs. This contributed to a relatively stable net interest margin, excluding the impact of the recently issued convertible debt interest expense. We also saw positive asset quality trends across the portfolio with meaningful declines in criticized loans and nonperforming assets, as well as realizing $1.1 million in net recoveries for the quarter.

“Our commitment to enhancing shareholder value is exemplified by our recent convertible notes offering coupled with the meaningful share buyback program and our sixth consecutive annual increase in our cash dividend. We believe that we are only beginning to unlock the synergies of our organization, and we look forward to keeping our stakeholders apprised of our progress,” said Kim.

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Financial Highlights
(dollars in thousands, except per share data) (unaudited)
At or for the Three Months Ended
 
6/30/2018
 
3/31/2018
 
6/30/2017
Net income
$
47,530

 
$
51,232

 
$
40,687

Diluted earnings per share
$
0.36

 
$
0.38

 
$
0.30

Net interest income before provision for loan losses
$
122,819

 
$
120,068

 
$
116,820

Net interest margin
 
3.61
%
 
 
3.66
%
 
 
3.75
%
Noninterest income
$
15,269

 
$
19,850

 
$
16,115

Noninterest expense
$
71,629

 
$
68,453

 
$
64,037

Net loans receivable
$
11,581,559

 
$
11,206,022

 
$
10,736,345

Deposits
$
11,734,595

 
$
11,510,569

 
$
10,955,101

Nonaccrual loans (1)
$
68,226

 
$
68,152

 
$
47,361

ALLL to loans receivable
 
0.77
%
 
 
0.77
%
 
 
0.74
%
ALLL to nonaccrual loans (1) (2)
 
131.74
%
 
 
126.86
%
 
 
169.07
%
ALLL to nonperforming assets (1) (2)
 
69.60
%
 
 
62.70
%
 
 
64.40
%
Provision for loan losses
$
2,300

 
$
2,500

 
$
2,760

Net (recoveries) charge offs
$
(1,120
)
 
$
580

 
$
1,345

Return on average assets (“ROA”)
 
1.30
%
 
 
1.44
%
 
 
1.21
%
Return on average equity (“ROE”)
 
9.89
%
 
 
10.61
%
 
 
8.60
%
Efficiency ratio
 
51.87
%
 
 
48.92
%
 
 
48.17
%

(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation
(2) Excludes purchased credit-impaired loans

Operating Results for the 2018 Second Quarter
 
The comparability of the Company’s operating results with past performance is impacted by acquisition accounting adjustments and merger-related expenses associated with past and current acquisitions. The Company provides the following supplemental information to facilitate a better understanding of financial performance. Net interest income and operating income for the three months ended June 30, 2018, March 31, 2018 and June 30, 2017 included the following pre-tax acquisition accounting adjustments and merger-related expenses associated with past acquisitions:
(dollars in thousands) (unaudited)
Three Months Ended
 
6/30/2018
 
3/31/2018
 
6/30/2017
Accretion on purchased non-impaired loans
$
3,189

 
$
3,197

 
$
3,501

Accretion on purchased credit-impaired loans
 
5,959

 
 
5,772

 
 
5,212

Amortization of premium on low income housing tax credits
 
(85
)
 
 
(84
)
 
 
(85
)
Amortization of premium on acquired FHLB borrowings
 
352

 
 
347

 
 
446

Accretion of discount on acquired subordinated debt
 
(269
)
 
 
(264
)
 
 
(261
)
Amortization of premium on acquired time deposits and savings
 

 
 
1

 
 
1,218

Amortization of core deposit intangibles
 
(615
)
 
 
(616
)
 
 
(676
)
     Total acquisition accounting adjustments
$
8,531

 
$
8,353

 
$
9,355

Merger-related expenses
 

 
 
7

 
 
(562
)
          Total
$
8,531

 
$
8,360

 
$
8,793


Net Interest Income. Net interest income before provision for loan losses for the 2018 second quarter increased to $122.8 million from $120.1 million in the 2018 first quarter and $116.8 million in the year-ago second quarter. The Company attributed the increase in net interest income before provision for loan losses to higher levels of interest-earning assets and improved yields.

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The net interest margin (net interest income divided by average interest earning assets) for the 2018 second quarter declined 5 basis points to 3.61% from 3.66% in the preceding 2018 first quarter, of which 4 basis points of the decline is attributed to the convertible debt interest expense. In the year-ago second quarter, the net interest margin was 3.75%. Excluding the impact of the recently issued convertible debt, the net interest margin was relatively stable as the strong growth in the loan portfolio and higher weighted average loan yields largely offset the impact of higher weighted average cost of deposits.

The weighted average yield on loans for the 2018 second quarter increased to 5.16%, up 12 basis points from 5.04% in the 2018 first quarter and up 27 basis points from 4.89% in the year-ago second quarter. The increase in the weighted average yield on loans largely reflects the benefits to the variable rate portion of the Company’s loan portfolio resulting from the increases in the fed funds rate in March, June and December of 2017 and March and June 2018 of 25 basis points each.

The weighted average cost of deposits for the 2018 second quarter increased to 1.06%, up 15 basis points from 0.91% in the 2018 first quarter and up 38 basis points from 0.68% in the year-ago second quarter. The increase in the weighted average cost of deposits reflects the extremely competitive deposit market, as well as an increase in the higher-rate time deposit balances in the rising interest rate environment.

Noninterest Income. Noninterest income for the 2018 second quarter decreased to $15.3 million from $19.9 million in the 2018 first quarter, largely reflecting the $3.5 million of income in the preceding first quarter recorded on certain equity investments held by the Company and lower gains on sales of residential mortgage loans. For the 2017 second quarter, noninterest income totaled $16.1 million. Net gains on sales of SBA loans amounted to $3.5 million, $3.5 million and $3.3 million in the 2018 second quarter, 2018 first quarter and 2017 second quarter, respectively. Net gains on sales of residential mortgage loans amounted to $431,000, $1.2 million and $352,000 for the 2018 second quarter, 2018 first quarter and 2017 second quarter, respectively.

Noninterest Expense. Noninterest expense for the 2018 second quarter increased to $71.6 million from $68.5 million in the preceding first quarter and $64.0 million in the year-ago second quarter, largely reflecting higher levels of compensation expense and professional fees.

Salaries and employee benefits expense totaled $40.6 million for the 2018 second quarter, compared with $39.4 million for the 2018 first quarter and $34.9 million in the prior-year second quarter. The total number of FTEs, excluding employees on leave, as of June 30, 2018 was 1,491, compared with 1,502 as of March 31, 2018 and 1,378 as of June 30, 2017. The increase in compensation expense from the 2018 first quarter to the second quarter reflects higher group insurance costs and a full quarter’s impact from the FTE increase during the 2018 first quarter.

Income Tax Provision. The effective tax rate for the 2018 second quarter was 25.9%, compared with 25.7% in the preceding 2018 first quarter and 38.5% in the 2017 second quarter. The 2018 effective tax rates reflect the enactment of the Tax Cuts and Jobs Act on December 22, 2017, which lowered the corporate federal tax rate from 35% to 21% effective January 1, 2018.

Balance Sheet Summary
 
Loans receivable increased 3% to $11.67 billion at June 30, 2018 from $11.29 billion at March 31, 2018, reflecting a 13% annualized growth rate. Year-over-year, loans receivable increased 8% from $10.82 billion at June 30, 2017.

New loan originations funded during the 2018 second quarter totaled $792.3 million and included SBA loan production of $87.0 million and residential mortgage loan originations of $182.1 million. This compares with 2018 first quarter originations of $764.3 million, including SBA loan production of $78.2 million and residential mortgage loan originations of $179.2 million. In the year-ago second quarter, new loans originations funded totaled $725.1 million, including SBA loan production of $109.4 million and residential mortgage loan originations of $70.8 million.

Sales of SBA loans to the secondary market and gains derived from those sales are based substantially on the production of SBA 7(a) loans. SBA 7(a) loan originations totaled $65.8 million for the 2018 second quarter, compared with $73.9 million for the first quarter of 2018 and $65.5 million for the year-ago second quarter. During the 2018 second quarter,

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4-4-4    NASDAQ: HOPE


the Company sold $52.5 million of its SBA loans held for sale, compared with $48.6 million in the immediately preceding first quarter and $46.1 million in the second quarter a year ago.

Aggregate loan pay offs and pay downs in the 2018 second quarter totaled $435.1 million, compared with $411.6 million for the immediately preceding first quarter and $432.1 million in the year-ago second quarter.

Total deposits at June 30, 2018 amounted to $11.73 billion, up 2% from $11.51 at March 31, 2018 and up 7% from $10.96 billion at June 30, 2017. Noninterest bearing demand deposits accounted for 25.9%, 26.5% and 27.5% of total deposits as of June 30, 2018, March 31, 2018 and June 30, 2017, respectively.

Credit Quality
 
The provision for loan and lease losses for the 2018 second quarter was $2.3 million, compared with $2.5 million for the immediately preceding 2018 first quarter and $2.8 million for the year-ago second quarter.

For a more detailed understanding of the changes in the allowance for loan and lease losses (“ALLL”), the composition of the ALLL has been segmented for disclosure purposes between loans accounted for under the amortized cost method (referred to as “legacy loans”) and loans acquired through the Wilshire Bancorp, Center Financial, Pacific International and Foster Bankshares transactions (referred to as “purchased loans”). The purchased loans are further segregated between non-impaired and credit-impaired loans.

The composition of the ALLL as of June 30, 2018, March 31, 2018 and June 30, 2017 is as follows:
(dollars in thousands) (unaudited)
6/30/2018
 
3/31/2018
 
6/30/2017
Legacy loans (1)
$
76,048
 
$
72,065
 
$
65,255
Purchased non-impaired loans (2)
 
2,467
 
 
2,581
 
 
2,753
Purchased credit-impaired loans (2)
 
11,366
 
 
11,815
 
 
12,066
Total ALLL
$
89,881
 
$
86,461
 
$
80,074
 
 
 
 
 
 
 
 
 
Loans receivable
$
11,671,440
 
$
11,292,483
 
$
10,816,419
ALLL coverage ratio (excluding loans held for sale)
 
0.77
%
 
 
0.77
%
 
 
0.74
%

(1)
Legacy loans include loans originated by the Bank’s predecessor banks, loans originated by Bank of Hope and loans that were acquired that have been refinanced as new loans.
(2)
Purchased loans were marked to fair value at acquisition date, and the ALLL reflects provisions for credit deterioration since the acquisition date.

The Company defines nonperforming loans to include delinquent loans on nonaccrual status, delinquent loans past due 90 days or more on accrual status (excluding purchased credit-impaired loans) and accruing restructured loans. Nonaccrual loans were stable at $68.2 million at June 30, 2018 and March 31, 2018, but declined as a percentage of loans receivable to 0.58% from 0.60%. At June 30, 2017, nonaccrual loans amounted to $47.4 million, or 0.44% of loans receivable. Accruing restructured loans at June 30, 2018 totaled $49.2 million, down 17% from $59.6 million at March 31, 2018 and down 8% from $53.3 million at June 30, 2017. Total nonperforming loans amounted to $120.5 million at June 30, 2018, or 1.03% of loans receivable, compared with $129.6 million, or 1.15% of loans receivable, at March 31, 2018 and $102.5 million, or 0.95% of loans receivable, at June 30, 2017.

Nonperforming assets, including nonperforming loans and OREO, totaled $129.1 million at June 30, 2018, compared with $137.9 million at March 31, 2018 and $124.3 million June 30, 2017. As a percentage of total assets, nonperforming assets declined to 0.87% at June 30, 2018 from 0.95% at March 31, 2018 and 0.90% at June 30, 2017.
 
Following are the components of criticized loan balances as of June 30, 2018, March 31, 2018 and June 30, 2017:

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(dollars in thousands) (unaudited)
6/30/2018
 
3/31/2018
 
6/30/2017
Special Mention (1)
$
139,494
 
$
196,082
 
$
251,057
Classified (1)
 
357,671
 
 
344,647
 
 
315,440
     Criticized
$
497,165
 
$
540,729
 
$
566,497

(1)
Balances include purchased loans which were marked to fair value on the date of acquisition.
 
For the 2018 second quarter, the Company realized a net recovery of $1.1 million, or 0.04% of average loans receivable on an annualized basis. This compares with 2018 first quarter net charge offs of $580,000, or 0.02% of average loans receivable on an annualized basis, and 2017 second quarter net charge offs of $1.3 million, or 0.05% of average loans receivable on an annualized basis.

The ALLL at June 30, 2018 was $89.9 million, or 0.77% of loans receivable (excluding loans held for sale), compared with $86.5 million, or 0.77% of loans receivable (excluding loans held for sale), at March 31, 2018 and $80.1 million, or 0.74% of loans receivable (excluding loans held for sale), at June 30, 2017. The coverage ratio of the ALLL to nonperforming loans (excluding purchased credit-impaired loans) was 74.61% at June 30, 2018, 66.69% at March 31, 2018 and 78.12% at June 30, 2017.
 
Impaired loans (defined as loans for which it is probable that not all principal and interest payments due will be collected in accordance with the contractual terms) totaled $117.8 at June 30, 2018, compared with $128.1 at March 31, 2018 and $100.7 million at June 30, 2017.

Capital
 
At June 30, 2018, the Company and the Bank continued to exceed all regulatory capital requirements to be generally classified as a “well-capitalized” financial institution, as summarized in the following table:
 
6/30/2018
 
3/31/2018
 
6/30/2017
 
Minimum Guideline for “Well-Capitalized” Institution
Common Equity Tier 1 Capital
11.74%
 
12.35%
 
12.18%
 
6.50%
Tier 1 Leverage Ratio
11.06%
 
11.61%
 
11.80%
 
5.00%
Tier 1 Risk-based Ratio
12.52%
 
13.15%
 
13.00%
 
8.00%
Total Risk-based Ratio
13.24%
 
13.86%
 
13.70%
 
10.00%


Tangible common equity per share and as a percentage of tangible assets are summarized in the following table:
 
6/30/2018
 
3/31/2018
 
6/30/2017
Tangible common equity per share (1)
$10.87
 
$10.81
 
$10.52
Tangible common equity to tangible assets (2)
9.91%
 
10.44%
 
10.64%

(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. The accompanying financial information includes a reconciliation of the Company’s total stockholders’ equity to tangible common equity, including and excluding tax reform adjustments.
(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. The accompanying financial information includes a reconciliation of the Company’s total assets to tangible assets, including and excluding tax reform adjustments.

Management reviews tangible common equity per share and the tangible common equity to tangible assets ratio in evaluating the Company’s and the Bank’s capital levels and has included these figures in response to market participant interest in tangible common equity as a measure of capital. A reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information.


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Investor Conference Call

The Company previously announced that it will host an investor conference call on Wednesday, July 18, 2018 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its second quarter ended June 30, 2018. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international), and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available in the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through July 25, 2018, replay access code 10121593.

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 $14.9 billion in total assets as of June 30, 2018. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 63 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Georgia and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.

Forward-Looking Statements

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

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

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Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share data)


Assets:
6/30/2018
 
3/31/2018
 
% change
 
12/31/2017
 
% change
 
6/30/2017
 
% change
Cash and due from banks
$
466,364

 
$
612,353

 
(24
)%
 
$
492,000

 
(5
)%
 
$
446,415

 
4
 %
Securities available for sale, at fair value
1,835,106

 
1,699,315

 
8
 %
 
1,720,257

 
7
 %
 
1,680,382

 
9
 %
Federal Home Loan Bank (“FHLB”) stock and other investments
104,764

 
107,906

 
(3
)%
 
83,142

 
26
 %
 
66,313

 
58
 %
Loans held for sale, at the lower of cost or fair value
26,866

 
33,689

 
(20
)%
 
29,661

 
(9
)%
 
16,927

 
59
 %
Loans receivable
11,671,440

 
11,292,483

 
3
 %
 
11,102,575

 
5
 %
 
10,816,419

 
8
 %
Allowance for loan losses
(89,881
)
 
(86,461
)
 
(4
)%
 
(84,541
)
 
(6
)%
 
(80,074
)
 
(12
)%
  Net loans receivable
11,581,559

 
11,206,022

 
3
 %
 
11,018,034

 
5
 %
 
10,736,345

 
8
 %
Accrued interest receivable
30,954

 
29,154

 
6
 %
 
29,979

 
3
 %
 
25,640

 
21
 %
Premises and equipment, net
56,242

 
56,564

 
(1
)%
 
56,714

 
(1
)%
 
52,565

 
7
 %
Bank owned life insurance
75,693

 
75,302

 
1
 %
 
74,915

 
1
 %
 
74,113

 
2
 %
Goodwill
464,450

 
464,450

 
 %
 
464,450

 
 %
 
464,450

 
 %
Servicing assets
25,050

 
24,866

 
1
 %
 
24,710

 
1
 %
 
25,338

 
(1
)%
Other intangible assets, net
15,292

 
15,907

 
(4
)%
 
16,523

 
(7
)%
 
17,874

 
(14
)%
Other assets
187,668

 
181,598

 
3
 %
 
196,332

 
(4
)%
 
252,855

 
(26
)%
  Total assets
$
14,870,008

 
$
14,507,126

 
3
 %
 
$
14,206,717

 
5
 %
 
$
13,859,217

 
7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
$
11,734,595

 
$
11,510,569

 
2
 %
 
$
10,846,609

 
8
 %
 
$
10,955,101

 
7
 %
FHLB advances and fed funds purchased
836,994

 
862,346

 
(3
)%
 
1,227,593

 
(32
)%
 
793,403

 
5
 %
Convertible debt
192,120

 

 
100
 %
 

 
100
 %
 

 
100
 %
Subordinated debentures
101,386

 
101,117

 
 %
 
100,853

 
1
 %
 
100,328

 
1
 %
Accrued interest payable
24,594

 
19,614

 
25
 %
 
15,961

 
54
 %
 
11,855

 
107
 %
Other liabilities
74,643

 
68,147

 
10
 %
 
87,446

 
(15
)%
 
92,236

 
(19
)%
  Total liabilities
12,964,332

 
12,561,793

 
3
 %
 
12,278,462

 
6
 %
 
11,952,923

 
8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders’ Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, $0.001 par value
$
136

 
$
136

 
 %
 
$
136

 
 %
 
$
135

 
1
 %
Capital surplus
1,421,679

 
1,405,806

 
1
 %
 
1,405,014

 
1
 %
 
1,402,303

 
1
 %
Retained earnings
607,944

 
578,031

 
5
 %
 
544,886

 
12
 %
 
513,945

 
18
 %
Treasury stock, at cost
(78,961
)
 

 
100
 %
 

 
100
 %
 

 
100
 %
Accumulated other comprehensive loss, net
(45,122
)
 
(38,640
)
 
(17
)%
 
(21,781
)
 
(107
)%
 
(10,089
)
 
(347
)%
  Total stockholders’ equity
1,905,676

 
1,945,333

 
(2
)%
 
1,928,255

 
(1
)%
 
1,906,294

 
 %
  Total liabilities and stockholders’ equity
$
14,870,008

 
$
14,507,126

 
3
 %
 
$
14,206,717

 
5
 %
 
$
13,859,217

 
7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock shares - authorized
150,000,000

 
150,000,000

 
 
 
150,000,000

 
 
 
150,000,000

 
 
Common stock shares - outstanding
131,167,705

 
135,516,119

 
 
 
135,511,891

 
 
 
135,297,678

 
 
Treasury stock shares
4,361,740

 

 
 
 

 
 
 

 
 



Table Page 1

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)



 
Three Months Ended
 
Six Months Ended
 
6/30/2018
 
3/31/2018
 
% change
 
6/30/2017
 
% change
 
6/30/2018
 
6/30/2017
 
% change
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Interest and fees on loans
$
146,188

 
$
137,943

 
6
 %
 
$
128,515

 
14
 %
 
$
284,131

 
$
251,809

 
13
 %
  Interest on securities
10,899

 
10,101

 
8
 %
 
8,741

 
25
 %
 
21,000

 
16,854

 
25
 %
  Interest on federal funds sold and other investments
2,823

 
2,366

 
19
 %
 
1,277

 
121
 %
 
5,189

 
2,613

 
99
 %
    Total interest income
159,910

 
150,410

 
6
 %
 
138,533

 
15
 %
 
310,320

 
271,276

 
14
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Interest on deposits
30,610

 
24,849

 
23
 %
 
18,114

 
69
 %
 
55,459

 
32,625

 
70
 %
  Interest on other borrowings and convertible debt
6,481

 
5,493

 
18
 %
 
3,599

 
80
 %
 
11,974

 
6,926

 
73
 %
    Total interest expense
37,091

 
30,342

 
22
 %
 
21,713

 
71
 %
 
67,433

 
39,551

 
70
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income before provision for loan losses
122,819

 
120,068

 
2
 %
 
116,820

 
5
 %
 
242,887

 
231,725

 
5
 %
Provision for loan losses
2,300

 
2,500

 
(8
)%
 
2,760

 
(17
)%
 
4,800

 
8,360

 
(43
)%
Net interest income after provision for loan losses
120,519

 
117,568

 
3
 %
 
114,060

 
6
 %
 
238,087

 
223,365

 
7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Service fees on deposit accounts
4,613

 
4,801

 
(4
)%
 
5,179

 
(11
)%
 
9,414

 
10,517

 
(10
)%
  Net gains on sales of SBA loans
3,480

 
3,450

 
1
 %
 
3,267

 
7
 %
 
6,930

 
6,517

 
6
 %
  Net gains on sales of other loans
431

 
1,196

 
(64
)%
 
352

 
22
 %
 
1,627

 
772

 
111
 %
  Other income and fees
6,745

 
10,403

 
(35
)%
 
7,317

 
(8
)%
 
17,148

 
15,912

 
8
 %
    Total noninterest income
15,269

 
19,850

 
(23
)%
 
16,115

 
(5
)%
 
35,119

 
33,718

 
4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Salaries and employee benefits
40,575

 
39,385

 
3
 %
 
34,946

 
16
 %
 
79,960

 
69,112

 
16
 %
  Occupancy
7,418

 
7,239

 
2
 %
 
7,154

 
4
 %
 
14,657

 
14,348

 
2
 %
  Furniture and equipment
4,023

 
3,721

 
8
 %
 
3,556

 
13
 %
 
7,744

 
6,969

 
11
 %
  Advertising and marketing
2,737

 
2,299

 
19
 %
 
2,394

 
14
 %
 
5,036

 
5,818

 
(13
)%
  Data processing and communications
3,574

 
3,495

 
2
 %
 
2,676

 
34
 %
 
7,069

 
6,282

 
13
 %
  Professional fees
4,474

 
3,106

 
44
 %
 
3,260

 
37
 %
 
7,580

 
7,162

 
6
 %
  FDIC assessment
1,611

 
1,767

 
(9
)%
 
1,004

 
60
 %
 
3,378

 
2,014

 
68
 %
  Credit related expenses
926

 
772

 
20
 %
 
113

 
719
 %
 
1,698

 
1,996

 
(15
)%
  Other real estate owned (“OREO”) expense, net
45

 
(104
)
 
N/A

 
1,188

 
(96
)%
 
(59
)
 
2,185

 
N/A

  Merger-related expenses

 
(7
)
 
(100
)%
 
562

 
(100
)%
 
(7
)
 
1,509

 
N/A

  Other
6,246

 
6,780

 
(8
)%
 
7,184

 
(13
)%
 
13,026

 
14,341

 
(9
)%
    Total noninterest expense
71,629

 
68,453

 
5
 %
 
64,037

 
12
 %
 
140,082

 
131,736

 
6
 %
Income before income taxes
64,159

 
68,965

 
(7
)%
 
66,138

 
(3
)%
 
133,124

 
125,347

 
6
 %
Income tax provision
16,629

 
17,733

 
(6
)%
 
25,451

 
(35
)%
 
34,362

 
48,450

 
(29
)%
Net income
$
47,530

 
$
51,232

 
(7
)%
 
$
40,687

 
17
 %
 
$
98,762

 
$
76,897

 
28
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Common Share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic
$
0.36

 
$
0.38

 


 
$
0.30

 
 
 
$
0.74

 
$
0.57

 
 
  Diluted
$
0.36

 
$
0.38

 


 
$
0.30

 
 
 
$
0.73

 
$
0.57

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Shares Outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic
133,061,304

 
135,518,705

 
 
 
135,257,044

 
 
 
134,283,216

 
135,252,556

 
 
  Diluted
133,352,841

 
135,815,262

 
 
 
135,613,181

 
 
 
134,576,744

 
135,685,064

 
 

Table Page 2

Hope Bancorp, Inc.
Selected Financial Data
Unaudited


 
For the Three Months Ended
(Annualized)
 
For the Six Months Ended
(Annualized)
Profitability measures:
6/30/2018
 
3/31/2018
 
6/30/2017
 
6/30/2018
 
6/30/2017
  ROA
1.30
%
 
1.44
%
 
1.21
%
 
1.37
%
 
1.15
%
  ROE
9.89
%
 
10.61
%
 
8.60
%
 
10.25
%
 
8.18
%
  Return on average tangible equity 1
13.18
%
 
14.13
%
 
11.54
%
 
13.66
%
 
11.00
%
  Net interest margin
3.61
%
 
3.66
%
 
3.75
%
 
3.64
%
 
3.76
%
  Efficiency ratio
51.87
%
 
48.92
%
 
48.17
%
 
50.39
%
 
49.63
%
 
 
 
 
 
 
 
 
 
 
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.
 


Table Page 3

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)


 
Three Months Ended
 
6/30/2018
 
3/31/2018
 
6/30/2017
 
 
 
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 receivable, including loans held for sale
$
11,364,229

 
$
146,188

 
5.16
%
 
$
11,095,864

 
$
137,943

 
5.04
%
 
$
10,536,428

 
$
128,515

 
4.89
%
    Securities available for sale
1,732,908

 
10,899

 
2.52
%
 
1,673,122

 
10,101

 
2.45
%
 
1,609,310

 
8,741

 
2.18
%
    FHLB stock and other investments
561,230

 
2,823

 
2.02
%
 
517,572

 
2,366

 
1.85
%
 
364,906

 
1,277

 
1.40
%
Total interest earning assets
$
13,658,367

 
$
159,910

 
4.70
%
 
$
13,286,558

 
$
150,410

 
4.59
%
 
$
12,510,644

 
$
138,533

 
4.44
%
 
 
 
 
   
 
 
 
 
 
   
 
 
 
 
 
 
 
INTEREST BEARING LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Demand, interest bearing
$
3,342,685

 
$
10,438

 
1.25
%
 
$
3,402,760

 
$
8,864

 
1.06
%
 
$
3,457,412

 
$
7,974

 
0.93
%
    Savings
228,381

 
442

 
0.78
%
 
236,216

 
424

 
0.73
%
 
280,188

 
279

 
0.40
%
    Time deposits
4,919,465

 
19,730

 
1.61
%
 
4,525,813

 
15,561

 
1.39
%
 
4,012,838

 
9,861

 
0.99
%
    Total interest bearing deposits
8,490,531

 
30,610

 
1.45
%
 
8,164,789

 
24,849

 
1.23
%
 
7,750,438

 
18,114

 
0.94
%
    FHLB advances
846,014

 
3,681

 
1.75
%
 
974,071

 
4,069

 
1.69
%
 
713,858

 
2,338

 
1.31
%
    Convertible debt
102,979

 
1,198

 
4.60
%
 

 

 
 
 

 

 
%
    Subordinated debentures
97,315

 
1,602

 
6.51
%
 
97,049

 
1,424

 
5.87
%
 
96,218

 
1,261

 
5.18
%
Total interest bearing liabilities
9,536,839

 
$
37,091

 
1.56
%
 
9,235,909

 
$
30,342

 
1.33
%
 
8,560,514

 
$
21,713

 
1.02
%
Noninterest bearing demand deposits
3,053,338

 
 
 
 
 
2,941,577

 
 
 
 
 
2,929,656

 
 
 
 
Total funding liabilities/cost of funds
$
12,590,177

 
 
 
1.18
%
 
$
12,177,486

 
 
 
1.01
%
 
$
11,490,170

 
 
 
0.76
%
Net interest income/net interest spread
 
 
$
122,819

 
3.14
%
 
 
 
$
120,068

 
3.26
%
 
 
 
$
116,820

 
3.42
%
Net interest margin
 
 
 
 
3.61
%
 
 
 
 
 
3.66
%
 
 
 
 
 
3.75
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Noninterest bearing demand deposits
$
3,053,338

 
 
 
 
 
$
2,941,577

 
 
 
 
 
$
2,929,656

 
 
 
 
    Interest bearing deposits
8,490,531

 
30,610

 
1.45
%
 
8,164,789

 
24,849

 
1.23
%
 
7,750,438

 
18,114

 
0.94
%
Total deposits
$
11,543,869

 
$
30,610

 
1.06
%
 
$
11,106,366

 
$
24,849

 
0.91
%
 
$
10,680,094

 
$
18,114

 
0.68
%


Table Page 4

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)


 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended
 
6/30/2018
 
6/30/2017
 
 
 
Interest
 
Annualized
 
 
 
Interest
 
Annualized
 
Average
 
Income/
 
Average
 
Average
 
Income/
 
Average
 
Balance
 
Expense
 
Yield/Cost
 
Balance
 
Expense
 
Yield/Cost
INTEREST EARNING ASSETS:
 
 
 
 
 
 
 
 
 
 
 
    Loans receivable, including loans held for sale
$
11,230,788

 
284,131

 
5.10
%
 
$
10,459,527

 
$
251,809

 
4.85
%
    Securities available for sale
1,703,180

 
21,000

 
2.49
%
 
1,588,519

 
16,854

 
2.14
%
    FRB and FHLB stock and other investments
539,522

 
$
5,189

 
1.94
%
 
394,267

 
2,613

 
1.34
%
Total interest earning assets
$
13,473,490

 
$
310,320

 
4.64
%
 
$
12,442,313

 
$
271,276

 
4.40
%
 
 
 
 
 
 
 
 
 
 
 
 
INTEREST BEARING LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
  Deposits:
 
 
 
 
 
 
 
 
 
 
 
    Demand, interest bearing
$
3,372,556

 
$
19,302

 
1.15
%
 
$
3,447,254

 
$
15,164

 
0.89
%
    Savings
232,277

 
865

 
0.75
%
 
286,862

 
567

 
0.40
%
    Time deposits
4,723,726

 
35,292

 
1.51
%
 
4,011,019

 
16,894

 
0.85
%
    Total interest bearing deposits
8,328,559

 
55,459

 
1.34
%
 
7,745,135

 
32,625

 
0.85
%
    FHLB advances
909,689

 
$
7,750

 
1.72
%
 
688,307

 
4,477

 
1.31
%
    Convertible debt
51,774

 
1,198

 
4.60
%
 

 

 
%
    Other borrowings
97,183

 
3,026

 
6.19
%
 
96,065

 
2,449

 
5.07
%
Total interest bearing liabilities
9,387,205

 
$
67,433

 
1.45
%
 
8,529,507

 
$
39,551

 
0.94
%
Noninterest bearing demand deposits
2,997,766

 
 
 
 
 
2,899,167

 
 
 
 
Total funding liabilities/cost of funds
$
12,384,971

 
 
 
1.10
%
 
$
11,428,674

 
 
 
0.70
%
Net interest income/net interest spread
 
 
$
242,887

 
3.19
%
 
 
 
$
231,725

 
3.46
%
Net interest margin
 
 
 
 
3.64
%
 
 
 
 
 
3.76
%
 
 
 
 
 
 
 
 
 
 
 
 
Cost of deposits:
 
 
 
 
 
 
 
 
 
 
 
    Noninterest bearing demand deposits
$
2,997,766

 
 
 
 
 
$
2,899,167

 
 
 
 
    Interest bearing deposits
8,328,559

 
55,459

 
1.34
%
 
7,745,135

 
32,625

 
0.85
%
Total deposits
$
11,326,325

 
$
55,459

 
0.99
%
 
$
10,644,302

 
$
32,625

 
0.62
%


Table Page 5

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)


 
 Three Months Ended
 
Six Months Ended
AVERAGE BALANCES:
6/30/2018
 
3/31/2018
 
% change
 
6/30/2017
 
% change
 
6/30/2018
 
6/30/2017
 
% change
Loans receivable, including loans held for sale
$
11,364,229

 
$
11,095,864

 
2
 %
 
$
10,536,428

 
8
 %
 
$
11,230,788

 
$
10,459,527

 
7
%
Investments
2,294,138

 
2,190,694

 
5
 %
 
1,974,216

 
16
 %
 
2,242,702

 
1,982,786

 
13
%
Interest earning assets
13,658,367

 
13,286,558

 
3
 %
 
12,510,644

 
9
 %
 
13,473,490

 
12,442,313

 
8
%
Total assets
14,596,963

 
14,214,250

 
3
 %
 
13,470,745

 
8
 %
 
14,406,664

 
13,403,609

 
7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest bearing deposits
8,490,531

 
8,164,789

 
4
 %
 
7,750,438

 
10
 %
 
8,328,559

 
7,745,135

 
8
%
Interest bearing liabilities
9,536,839

 
9,235,909

 
3
 %
 
8,560,514

 
11
 %
 
9,387,205

 
8,529,507

 
10
%
Noninterest bearing demand deposits
3,053,338

 
2,941,577

 
4
 %
 
2,929,656

 
4
 %
 
2,997,766

 
2,899,167

 
3
%
Stockholders’ equity
1,922,290

 
1,931,290

 
 %
 
1,892,126

 
2
 %
 
1,926,766

 
1,880,626

 
2
%
Net interest earning assets
4,121,528

 
4,050,649

 
2
 %
 
3,950,130

 
4
 %
 
4,086,285

 
3,912,806

 
4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LOAN PORTFOLIO COMPOSITION:
6/30/2018
 
3/31/2018
 
% change
 
12/31/2017
 
% change
 
6/30/2017
 
% change
 
 
Commercial loans
$
2,287,482

 
$
2,007,686

 
14
 %
 
$
1,947,533

 
17
 %
 
$
1,925,503

 
19
 %
 
 
Real estate loans
8,512,740

 
8,529,153

 
 %
 
8,508,222

 
 %
 
8,432,395

 
1
 %
 
 
Consumer and other loans
872,562

 
755,621

 
15
 %
 
647,102

 
35
 %
 
460,446

 
90
 %
 
 
    Loans outstanding
11,672,784

 
11,292,460

 
3
 %
 
11,102,857

 
5
 %
 
10,818,344

 
8
 %
 
 
Unamortized deferred loan fees - net of costs
(1,344
)
 
23

 
N/A

 
(282
)
 
377
 %
 
(1,925
)
 
(30
)%
 
 
    Loans, net of deferred loan fees and costs
11,671,440

 
11,292,483

 
3
 %
 
11,102,575

 
5
 %
 
10,816,419

 
8
 %
 
 
Allowance for loan losses
(89,881
)
 
(86,461
)
 
4
 %
 
(84,541
)
 
6
 %
 
(80,074
)
 
12
 %
 
 
    Loan receivable, net
$
11,581,559

 
$
11,206,022

 
3
 %
 
$
11,018,034

 
5
 %
 
$
10,736,345

 
8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REAL ESTATE LOANS BY PROPERTY TYPE:
6/30/2018
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