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Section 1: 8-K (8-K)

Document
false0001128361 0001128361 2020-04-28 2020-04-28 0001128361 2019-10-21 2019-10-21



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

April 28, 2020
Date of Report (Date of earliest event reported)

HOPE BANCORP INC
(Exact name of registrant as specified in its charter)

Delaware
000-50245
95-4849715
(State of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)

3200 Wilshire Boulevard, Suite 1400
Los Angeles, California 90010
(Address of principal executives offices, including zip code)

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


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Common Stock
,
par value $0.001 per share
HOPE
NASDAQ Global Select Market
(Title of class)
(Trading Symbol)
(Name of exchange on which registered)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.






Item 2.02 Results of Operations and Financial Condition.

On April 28, 2020, Hope Bancorp, Inc. (“HOPE” or the “Company”) issued a news release concerning its results of operations and financial condition for the first quarter ended and as of March 31, 2020. A copy of the April 28, 2020 press release is attached hereto as Exhibit 99.1.

Item 8.01 Other Events.
 
On April 28, 2020, 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 May 22, 2020 to all stockholders of record as of the close of business on May 8, 2020. A copy of the April 28, 2020 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, April 29, 2020 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2020. 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.

The following risk factor supplements the “Risk Factors” section in our 2019 Form 10-K.

The COVID-19 pandemic has had a material and adverse impact on our business, financial condition and results of operations, and the further impact will depend on future developments that cannot be predicted, including the scope and duration of the pandemic, the economic implications of the same, and the actions taken by governmental authorities in response to the pandemic.

The novel COVID-19 pandemic has substantially and negatively impacted the United States economy, disrupted global supply chains, considerably lowered equity market valuations, created significant volatility and disruption in financial markets, and materially increased unemployment levels. In addition, the pandemic has resulted in temporary closures of countless businesses and the institution of social distancing and sheltering in place requirements in most states and communities. As a result, the demand for our products and services has been and likely will continue to be significantly adversely impacted, which could materially and adversely affect our financial condition and results of operations. Furthermore, the pandemic could result in the recognition of amplified credit losses in our loan portfolios and increases in our allowance for loan losses, particularly if businesses remain closed and our customers draw on their lines of credit. Similarly, because of changing economic and market conditions, we may be required to recognize impairments on goodwill or the securities we hold. Our business operations may also be further disrupted if significant portions of our workforce are unable to work effectively, including because of challenges arising as a result of circumstances related to working from home, illness, quarantines, government actions, or other restrictions in connection with the pandemic, and we have already temporarily closed certain of our branches. In response to the pandemic, we have also suspended residential property foreclosure sales, evictions, and involuntary automobile repossessions, and are offering payment deferrals and other expanded assistance for credit card, mortgage and small business lending customers, and future governmental actions may require these and other types of customer-related responses. In addition, we may take capital actions in response to the COVID-19 pandemic. The extent to which the COVID-19 pandemic continues to impact our business, results of operations, and financial condition, as well as our regulatory capital and liquidity ratios, will depend on future developments that cannot be predicted, including the scope and duration of the pandemic, the economic implications of the same and actions taken by governmental authorities and other third parties in response to the pandemic.







Item 9.01 Financial Statements and Exhibits

(d) Exhibits
Exhibit No.
 
Description of Exhibit
 
 
 
99.1
 
99.2
 
99.3
 
104
 
Cover Page Interactive Data File (embedded within the Inline XBRL document)







SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
HOPE BANCORP, INC.
 
 
 
 
Date: April 29, 2020
By:
/s/ Kevin S. Kim
 
 
 
Kevin S. Kim
 
 
 
Chairman, President and Chief Executive Officer







EXHIBIT INDEX

Exhibit No.
 
Description of Exhibit
 
 
 
99.1
 
99.2
 
99.3
 
104
 
Cover Page Interactive Data File (embedded within the Inline XBRL document)





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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
403789118_hopebancorp5a03.jpg
News Release


HOPE BANCORP REPORTS 2020 FIRST QUARTER FINANCIAL RESULTS


LOS ANGELES - April 28, 2020 - 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, 2020.

For the three months ended March 31, 2020, net income totaled $26.0 million, or $0.21 per diluted common share, reflecting the Company’s implementation of the Current Expected Credit Losses (“CECL”) methodology, which incorporates a significant deterioration in the future economic outlook due to the COVID-19 pandemic. This led to a quarterly provision for credit losses of $28.0 million. This compares with net income of $43.0 million, or $0.34 per diluted common share, in the 2019 fourth quarter and $42.8 million, or $0.34 per diluted common share, in the 2019 first quarter. The provision for credit losses, under the former incurred loss methodology, amounted to $1.0 million and $3.0 million, respectively, for the comparable 2019 fourth quarter and 2019 first quarter.

“Overall, our 2020 first quarter results reflect a solid quarter of operational performance marked by continued progress with strategic initiatives designed to strengthen our organization from an enterprise risk management perspective,” said Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc. “We continued to see a positive shift in our deposit mix favoring lower cost core deposits, which contributed to a 15 basis point reduction in our total cost of deposits. This led to a 15 basis point expansion of our net interest margin as reported and an 8 basis point expansion on a core basis, excluding purchase accounting accretion. New loan origination volumes were robust for the seasonally slower first quarter totaling $625 million and representing a well diversified mix of commercial real estate, commercial and consumer loans. This led to a 10% increase in our loans receivable quarter-over-quarter on an annualized basis.

“The COVID-19 crisis has created an extremely challenging business environment with unprecedented levels of uncertainties as to the magnitude and duration of the pandemic, as well as the depth to which this will push our economy into a recession. However, we entered the pandemic crisis with very strong capital, robust liquidity, and excellent credit quality, which supports our confidence in our ability to navigate the difficult landscape. Our hearts go out to all who have been impacted by COVID-19. All of us at Bank of Hope stand united and committed to do all that we can to support our customers, our communities and our nation as we work tirelessly to get through this together.”
Q1 2020 Highlights
Pre-tax, pre-provision income increased 8% quarter-over quarter.
Strong new loan originations of $625 million led to a 2.5% increase in loans receivable quarter-over-quarter, or 10% annualized.
Total deposits increased 2.5% quarter-over-quarter, or 10% annualized.
Continuation of favorable mix-shift to lower cost core deposits contributed to a 15 basis point reduction quarter-over-quarter in total deposit costs.
NIM expansion of 15 basis points on a reported basis and 8 basis points on a core basis, excluding purchase accounting accretion.
Total noninterest expenses well contained and remain at 1.87% of average assets.
Allowance for credit losses increased substantially from 0.77% of loans receivable at December 31, 2019 to 1.15% at March 31, 2020, reflecting the implementation of the CECL standards and COVID-19 related uncertainties.


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Financial Highlights
(dollars in thousands, except per share data) (unaudited)
At or for the Three Months Ended
 
3/31/2020
 
12/31/2019
 
3/31/2019
Net income
$
25,953

 
$
43,009

 
$
42,758

Diluted earnings per share
$
0.21

 
$
0.34

 
$
0.34

Net interest income before provision for credit losses
$
119,291

 
$
113,508

 
$
119,608

Net interest margin
 
3.31
%
 
 
3.16
%
 
 
3.39
%
Noninterest income
$
13,264

 
$
12,979

 
$
11,422

Noninterest expense
$
72,140

 
$
70,429

 
$
70,833

Pre-tax pre-provision income (1)
$
60,415

 
$
56,058

 
$
60,197

Net loans receivable
$
12,438,493

 
$
12,181,863

 
$
11,959,787

Deposits
$
12,836,567

 
$
12,527,364

 
$
12,249,196

Nonaccrual loans (2) (3)
$
72,639

 
$
54,785

 
$
86,637

Nonperforming loans to loans receivable (2) (3)
 
0.94
%
 
 
0.80
%
 
 
1.10
%
ACL to loans receivable (4)
 
1.15
%
 
 
0.77
%
 
 
0.78
%
ACL to nonaccrual loans (2) (3) (4)
 
199.51
%
 
 
171.84
%
 
 
108.75
%
ACL to nonperforming assets (2) (3) (4)
 
102.11
%
 
 
77.08
%
 
 
68.03
%
Provision for credit losses
$
28,000

 
$
1,000

 
$
3,000

Net charge offs
$
3,421

 
$
738

 
$
462

Return on average assets (“ROA”)
 
0.67
%
 
 
1.13
%
 
 
1.12
%
Return on average equity (“ROE”)
 
5.12
%
 
 
8.46
%
 
 
8.91
%
Return on average common tangible equity (“ROTCE”) (5)
 
6.69
%
 
 
11.04
%
 
 
11.86
%
Noninterest expense / average assets
 
1.87
%
 
 
1.85
%
 
 
1.85
%
Efficiency ratio
 
54.42
%
 
 
55.68
%
 
 
54.06
%

(1) Pre-tax pre-provision income is a non-GAAP financial measure. A reconciliation of the Company’s pre-tax pre-provision income is provided in the accompanying financial information on Table Page 9.
(2) Excludes delinquent SBA loans that are guaranteed and currently in liquidation.
(3) Excludes purchased credit impaired (“PCI”) loans for December 31, 2019 and March 31, 2019.
(4) Allowance for credit losses as of March 31, 2020 was calculated under the CECL methodology while allowance for loan losses for prior periods were calculated under the incurred loss methodology.
(5) 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 2020 First Quarter
 
Net interest income before provision for credit losses for the 2020 first quarter totaled $119.3 million, compared with $113.5 million in the 2019 fourth quarter and $119.6 million in the year-ago first quarter. A large payoff of an acquired loan contributed $5.6 million in purchase accounting discount accretion.

The net interest margin for the 2020 first quarter increased 15 basis points to 3.31% from 3.16% in the 2019 fourth quarter. The increase in reported net interest margin was largely due to the above mentioned acquired loan payoff which benefited the 2020 first quarter net interest margin. On a core basis, net interest margin excluding the impact of acquisition accounting adjustments increased 8 basis points for the 2020 first quarter compared to the 2019 fourth quarter due to a reduction in deposits costs.

The weighted average yield on loans for the 2020 first quarter was 5.06%, compared with 5.04% in the preceding fourth quarter and 5.31% in the year-ago first quarter.


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The Company continued to see benefits from a positive shift in the mix of deposits favoring lower-cost money market and other deposits. This contributed to a quarter-over-quarter 15 basis point decrease in the weighted average cost of deposits, which was 1.34% for the 2020 first quarter, compared with 1.49% for the 2019 fourth quarter. In the year-ago first quarter, total cost of deposits was 1.57%.

Noninterest income totaled $13.3 million for the 2020 first quarter, compared with $13.0 million for the preceding fourth quarter and $11.4 million for the 2019 first quarter. Aside from normal fluctuations in noninterest income categories, the variance reflects the net gains on sales of other loans, representing the sale of residential mortgage loans, which amounted to $1.9 million, $1.9 million and $741,000 for the 2020 first quarter, 2019 fourth quarter and 2019 first quarter, respectively.

Noninterest expense was fairly stable at $72.1 million for the 2020 first quarter, compared with $70.4 million for the preceding fourth quarter and $70.8 million for the year-ago first quarter. Noninterest expense as a percentage of average assets amounted to 1.87% for the 2020 first quarter, compared with 1.85% for the 2019 fourth quarter and 2019 first quarter.

The quarter-over-quarter increase in noninterest expense for the 2020 first quarter reflects an increase in compensation expense, normalization of the Company’s FDIC assessment expense and higher OREO expenses. This increase was partially offset by decreases in professional fees and advertising and marketing expenses.

Salaries and employee benefits expense increased to $42.5 million for the 2020 first quarter from $39.8 million for the 2019 fourth quarter, largely reflecting payroll taxes and higher seasonal expenses related to the Company’s 401(k) program. In the 2019 first quarter, salaries and employee benefits expense totaled $40.4 million.

The effective tax rate for the 2020 first quarter was 19.9%, reflecting a significant reduction in the projected pre-tax book income for 2020. The effective tax rate for the preceding 2019 fourth quarter was 21.9% and 25.2% in the 2019 first quarter.

Balance Sheet Summary
 
New loan originations funded during the 2020 first quarter totaled $624.5 million and included SBA loan production of $49.8 million and residential mortgage loan originations of $37.4 million. This compares with 2019 fourth quarter originations of $847.6 million, including SBA loan production of $61.8 million and residential mortgage loan originations of $64.2 million. In the year-ago first quarter, new loan originations funded totaled $442.0 million, including SBA loan production of $48.0 million and residential mortgage loan originations of $64.3 million.

SBA 7(a) loan originations totaled $21.7 million for the 2020 first quarter, compared with $46.1 million for the fourth quarter of 2019 and $33.0 million for the year-ago first quarter. There have been no sales of SBA 7(a) loans to the secondary market since the Company’s decision to retain such loans in its portfolio during the 2018 fourth quarter.

At March 31, 2020, loans receivable increased 2.5% to $12.58 billion from $12.28 billion at December 31, 2019 and increased 4.4% from $12.05 billion at March 31, 2019.

Total deposits at March 31, 2020 increased 2.5% to $12.84 billion from $12.53 billion at December 31, 2019 and increased 4.8% from $12.25 billion at March 31, 2019, continuing a year-long positive shift in the mix of deposits favoring core money market and other deposits and decreases in higher-cost time deposits.

Following is the deposit composition as of March 31, 2020, December 31, 2019 and March 31, 2019:
(dollars in thousands) (unaudited)
3/31/2020
 
12/31/2019
 
% change
 
3/31/2019
 
% change
  Noninterest bearing demand deposits
$
3,010,143

 
$
3,108,687

 
(3
)%
 
$
2,948,751

 
2
 %
  Money market and other
4,851,000

 
3,985,556

 
22
 %
 
3,086,920

 
57
 %
  Saving deposits
272,577

 
274,151

 
(1
)%
 
223,562

 
22
 %
  Time deposits
4,702,847

 
5,158,970

 
(9
)%
 
5,989,963

 
(21
)%
    Total deposit balances
$
12,836,567

 
$
12,527,364

 
2
 %
 
$
12,249,196

 
5
 %

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Reflecting the continued favorable mix-shift in deposits, total cost of deposits decreased 15 basis points to 1.34% from 1.49% for the 2019 fourth quarter and decreased 23 basis points from 1.57% for the 2019 first quarter.

Allowance for Credit Losses
 
The 2020 first quarter provision for credit losses under the CECL methodology was $28.0 million. This compares with a provision for loan losses under the prior incurred loss methodology of $1.0 million for the 2019 fourth quarter and $3.0 million for the year-ago first quarter.

The Company adopted the new CECL accounting standard effective as of January 1, 2020 and recognized a Day 1 adjustment of its Allowance for Credit Losses (“ACL”) of $26.2 million. The $28.0 million provision for credit losses reflects updated macroeconomic variables incorporating the Moody’s Analytics Baseline V2 scenario published March 27, 2020, which incorporates the effect of the COVID-19 pandemic.

The ACL as of March 31, 2020 totaled $144.9 million, compared with $94.1 million at December 31, 2019 and $94.2 million at March 31, 2019. As a percentage of loans receivable (excluding loans held for sale), the ACL was 1.15%, 0.77% and 0.78% at March 31, 2020, December 31, 2019 and March 31, 2019, respectively. The coverage ratio of the ACL to nonperforming loans was 121.90% at March 31, 2020, 96.03% at December 31, 2019 and 71.25% at March 31, 2019.

 (unaudited)
(dollars in thousands)
Allowance for loan losses - Dec 31, 2019
$
94,144

CECL day 1 adoption impact
26,200

Allowance for credit losses - Jan 1, 2020
120,344

Provision for credit losses
28,000

Recoveries
2,536

Charge offs
(5,957
)
Allowance for credit losses - Mar 31, 2020
$
144,923

 
 

Credit Quality
 
Following are the components of nonperforming assets as of March 31, 2020, December 31, 2019 and March 31, 2019:
(dollars in thousands) (unaudited)
3/31/2020
 
12/31/2019
 
3/31/2019
Loans on nonaccrual status (1)
$
72,639

 
$
54,785

 
$
86,637

Delinquent loans 90 days or more on accrual status (2)
 
387

 
 
7,547

 
 
387

Accruing troubled debt restructured loans
 
45,860

 
 
35,709

 
 
45,204

Total nonperforming loans
 
118,886

 
 
98,041

 
 
132,228

Other real estate owned
 
23,039

 
 
24,091

 
 
6,258

Total nonperforming assets
$
141,925

 
$
122,132

 
$
138,486


(1)
Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $28.8 million, $28.1 million and $30.5 million, at March 31, 2020, December 31, 2019 and March 31, 2019, respectively.
(2) 
Excludes PCI loans totaling $13.2 million and $18.4 million, at December 31, 2019 and March 31, 2019, respectively.

The Company attributed $14.7 million of the increase in loans on nonaccrual status to the reclassification of PCD (formerly purchased credit-impaired loans) due to the implementation of the new CECL accounting standards.


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Following are the components of criticized loan balances as of March 31, 2020, December 31, 2019 and March 31, 2019:
(dollars in thousands) (unaudited)
3/31/2020
 
12/31/2019
 
3/31/2019
Special Mention
$
122,279
 
$
141,452
 
$
205,373
Classified
 
278,783
 
 
259,291
 
 
353,202
     Criticized
$
401,062
 
$
400,743
 
$
558,575

 
During the 2020 first quarter, the Company recorded net charge offs of $3.4 million, or 0.11% of average loans receivable on an annualized basis. Net charge offs for the 2019 fourth quarter totaled $738,000, or 0.02% of average loans receivable on an annualized basis. For the 2019 first quarter, the Company recorded net charge offs of $462,000, or 0.02% of average loans receivable on an annualized basis.

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 $120.8 million at March 31, 2020. This compares with impaired loans of $90.5 million at December 31, 2019 and $132.2 million at March 31, 2019. The Company attributed $22.2 million of the increase in impaired loans in the 2020 first quarter to the reclassification of PCD (formerly purchased credit-impaired loans) due to the implementation of the new CECL accounting standards.

Capital
 
At March 31, 2020, 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, 2020, December 31, 2019 and March 31, 2019:
Hope Bancorp, Inc. (unaudited)
3/31/2020
 
12/31/2019
 
3/31/2019
 
Minimum Guideline for “Well-Capitalized” Bank
Common Equity Tier 1 Capital
11.44%
 
11.76%
 
11.59%
 
6.50%
Tier 1 Leverage Ratio
10.88%
 
11.22%
 
10.66%
 
5.00%
Tier 1 Risk-Based Ratio
12.19%
 
12.51%
 
12.36%
 
8.00%
Total Risk-Based Ratio
13.08%
 
13.23%
 
13.10%
 
10.00%

With the adoption of the CECL standard on January 1, 2020, the Company recorded a Day 1 adjustment, net of taxes to retained earnings. In accordance with the revised regulatory CECL transition guidance, the Company has elected to defer the impact of the adoption of CECL for two years, at which time the impact will be phased-in over a three year period. Therefore, the Day 1 CECL adjustment did not have an impact to the Company’s regulatory capital ratios as of March 31, 2020.

Following are tangible common equity (“TCE”) per share and TCE as a percentage of tangible assets as of March 31, 2020, December 31, 2019 and March 31, 2019:
  
(unaudited)
3/31/2020
 
12/31/2019
 
3/31/2019
Tangible common equity per share (1)
$12.52
 
$12.40
 
$11.59
Tangible common equity to tangible assets (2)
9.92%
 
10.27%
 
9.84%

(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.

Management reviews tangible common equity to tangible assets ratio in evaluating the Company’s and the Bank’s capital levels and has included these figures and tangible common equity per share 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.

Stock Repurchase Plan
 
During the 2020 first quarter, the Company repurchased 2,716,034 shares at an average price of $13.32, completing its $50 million stock repurchase program announced on July 16, 2019. The Company does not have any plans to implement another share repurchase program at this time.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Wednesday, April 29, 2020 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2020. 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 May 6, 2020, replay access code 10142677.

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 $16.0 billion in total assets as of March 31, 2020. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 58 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; 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 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.




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Contacts:
Alex Ko
EVP & Chief Financial Officer
213-427-6560


Angie Yang
SVP, Director of Investor Relations &
Corporate Communications
213-251-2219


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


Assets:
3/31/2020
 
12/31/2019
 
% change
 
3/31/2019
 
% change
Cash and due from banks
$
802,033

 
$
698,567

 
15
 %
 
$
612,884

 
31
 %
Securities available for sale, at fair value
1,718,702

 
1,715,987

 
 %
 
1,818,343

 
(5
)%
Federal Home Loan Bank (“FHLB”) stock and other investments
96,956

 
97,659

 
(1
)%
 
102,594

 
(5
)%
Loans held for sale, at the lower of cost or fair value
8,281

 
54,271

 
(85
)%
 
921

 
799
 %
Loans receivable
12,583,416

 
12,276,007

 
3
 %
 
12,054,004

 
4
 %
Allowance for credit losses
(144,923
)
 
(94,144
)
 
54
 %
 
(94,217
)
 
54
 %
  Net loans receivable
12,438,493

 
12,181,863

 
2
 %
 
11,959,787

 
4
 %
Accrued interest receivable
30,450

 
30,772

 
(1
)%
 
34,831

 
(13
)%
Premises and equipment, net
51,392

 
52,012

 
(1
)%
 
53,218

 
(3
)%
Bank owned life insurance
76,429

 
76,339

 
 %
 
75,586

 
1
 %
Goodwill
464,450

 
464,450

 
 %
 
464,450

 
 %
Servicing assets
14,847

 
16,417

 
(10
)%
 
21,407

 
(31
)%
Other intangible assets, net
11,302

 
11,833

 
(4
)%
 
13,504

 
(16
)%
Other assets
308,099

 
267,270

 
15
 %
 
241,144

 
28
 %
  Total assets
$
16,021,434

 
$
15,667,440

 
2
 %
 
$
15,398,669

 
4
 %
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Deposits
$
12,836,567

 
$
12,527,364

 
2
 %
 
$
12,249,196

 
5
 %
FHLB advances
675,000

 
625,000

 
8
 %
 
720,000

 
(6
)%
Convertible notes, net
200,716

 
199,458

 
1
 %
 
195,754

 
3
 %
Subordinated debentures
103,318

 
103,035

 
 %
 
102,201

 
1
 %
Accrued interest payable
30,436

 
33,810

 
(10
)%
 
37,511

 
(19
)%
Other liabilities
157,309

 
142,762

 
10
 %
 
147,796

 
6
 %
  Total liabilities
$
14,003,346

 
$
13,631,429

 
3
 %
 
$
13,452,458

 
4
 %
 
 
 
 
 
 
 
 
 
 
Stockholders’ Equity:
 
 
 
 
 
 
 
 
 
Common stock, $0.001 par value
$
136

 
$
136

 
 %
 
$
136

 
 %
Capital surplus
1,429,275

 
1,428,066

 
 %
 
1,424,029

 
 %
Retained earnings
752,228

 
762,480

 
(1
)%
 
687,404

 
9
 %
Treasury stock, at cost
(200,000
)
 
(163,820
)
 
(22
)%
 
(150,000
)
 
(33
)%
Accumulated other comprehensive gain (loss), net
36,449

 
9,149

 
298
 %
 
(15,358
)
 
N/A

  Total stockholders’ equity
2,018,088

 
2,036,011

 
(1
)%
 
1,946,211

 
4
 %
  Total liabilities and stockholders’ equity
$
16,021,434

 
$
15,667,440

 
2
 %
 
$
15,398,669

 
4
 %
 
 
 
 
 
 
 
 
 
 
Common stock shares - authorized
150,000,000

 
150,000,000

 
 
 
150,000,000

 
 
Common stock shares - outstanding
123,169,404

 
125,756,543

 
 
 
126,635,584

 
 
Treasury stock shares
12,661,581

 
9,945,547

 
 
 
9,002,453

 
 

Table Page 1

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


 
Three Months Ended
 
3/31/2020
 
12/31/2019
 
% change
 
3/31/2019
 
% change
Interest income:
 
 
 
 
 
 
 
 
 
  Interest and fees on loans
$
154,230

 
$
152,795

 
1
 %
 
$
158,136

 
(2
)%
  Interest on securities
10,609

 
10,737

 
(1
)%
 
12,319

 
(14
)%
  Interest on federal funds sold and other investments
2,029

 
2,241

 
(9
)%
 
2,675

 
(24
)%
    Total interest income
166,868

 
165,773

 
1
 %
 
173,130

 
(4
)%
 
 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
 
  Interest on deposits
41,113

 
45,428

 
(9
)%
 
46,847

 
(12
)%
  Interest on other borrowings and convertible notes
6,464

 
6,837

 
(5
)%
 
6,675

 
(3
)%
    Total interest expense
47,577

 
52,265

 
(9
)%
 
53,522

 
(11
)%
 
 
 
 
 
 
 
 
 
 
Net interest income before provision for credit losses
119,291

 
113,508

 
5
 %
 
119,608

 
 %
Provision for credit losses
28,000

 
1,000

 
2,700
 %
 
3,000

 
833
 %
Net interest income after provision for credit losses
91,291

 
112,508

 
(19
)%
 
116,608

 
(22
)%
 
 
 
 
 
 
 
 
 
 
Noninterest income:
 
 
 
 
 
 
 
 
 
  Service fees on deposit accounts
4,133

 
4,510

 
(8
)%
 
4,317

 
(4
)%
  Net gains on sales of other loans
1,855

 
1,876

 
(1
)%
 
741

 
150
 %
  Other income and fees
7,276

 
6,593

 
10
 %
 
6,364

 
14
 %
    Total noninterest income
13,264

 
12,979

 
2
 %
 
11,422

 
16
 %
 
 
 
 
 
 
 
 
 
 
Noninterest expense:
 
 
 
 
 
 
 
 
 
  Salaries and employee benefits
42,502

 
39,841

 
7
 %
 
40,429

 
5
 %
  Occupancy
7,410

 
7,516

 
(1
)%
 
7,677

 
(3
)%
  Furniture and equipment
4,259

 
4,260

 
 %
 
3,446

 
24
 %
  Advertising and marketing
1,673

 
2,462

 
(32
)%
 
2,062

 
(19
)%
  Data processing and communications
2,631

 
2,416

 
9
 %
 
2,956

 
(11
)%
  Professional fees
3,300

 
5,948

 
(45
)%
 
5,380

 
(39
)%
  FDIC assessment
1,559

 
772

 
102
 %
 
1,551

 
1
 %
  Credit related expenses
1,662

 
1,717

 
(3
)%
 
678

 
145
 %
  OREO (income) expense, net
843

 
(122
)
 
N/A

 
(152
)
 
N/A

  Other
6,301

 
5,619

 
12
 %
 
6,806

 
(7
)%
    Total noninterest expense
72,140

 
70,429

 
2
 %
 
70,833

 
2
 %
Income before income taxes
32,415

 
55,058

 
(41
)%
 
57,197

 
(43
)%
Income tax provision
6,462

 
12,049

 
(46
)%
 
14,439

 
(55
)%
Net income
$
25,953

 
$
43,009

 
(40
)%
 
$
42,758

 
(39
)%
 
 
 
 
 
 
 
 
 
 
Earnings Per Common Share:
 
 
 
 
 
 
 
 
 
Basic
$
0.21

 
$
0.34

 

 
$
0.34

 
 
Diluted
$
0.21

 
$
0.34

 

 
$
0.34

 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Shares Outstanding:
 
 
 
 
 
 
 
 
 
Basic
124,295,327

 
126,410,924

 
 
 
126,640,464

 
 
Diluted
124,676,296

 
126,835,273

 
 
 
126,819,672

 
 

Table Page 2

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



 
For the Three Months Ended
(Annualized)
Profitability measures:
3/31/2020
 
12/31/2019
 
3/31/2019
  ROA
0.67
%
 
1.13
%
 
1.12
%
  ROE
5.12
%
 
8.46
%
 
8.91
%
  ROTCE (1)
6.69
%
 
11.04
%
 
11.86
%
  Net interest margin
3.31
%
 
3.16
%
 
3.39
%
  Efficiency ratio
54.42
%
 
55.68
%
 
54.06
%
  Noninterest expense / average assets
1.87
%
 
1.85
%
 
1.85
%
 
 
 
 
 
 
(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 and merger-related expenses:
3/31/2020
 
12/31/2019
 
3/31/2019
Accretion on purchased non-impaired loans
$
1,059

 
$
1,945

 
$
2,166

Accretion on purchased credit deteriorated/purchased credit impaired loans
9,449

 
5,958

 
5,833

Amortization of premium on low income housing tax credits
(71
)
 
(76
)
 
(76
)
Amortization of premium on acquired FHLB borrowings

 

 
1,280

Accretion of discount on acquired subordinated debt
(282
)
 
(281
)
 
(273
)
Amortization of core deposit intangibles
(531
)
 
(557
)
 
(557
)
     Total acquisition accounting adjustments
$
9,624

 
$
6,989

 
$
8,373

 
 
 
 
 
 


Table Page 3

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

 
Three Months Ended
 
3/31/2020
 
12/31/2019
 
3/31/2019
 
 
 
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
$
12,259,848

 
$
154,230

 
5.06
%
 
$
12,036,477

 
$
152,795

 
5.04
%
 
$
12,088,169

 
$
158,136

 
5.31
%
    Securities available for sale
1,712,033

 
10,609

 
2.49
%
 
1,755,887

 
10,737

 
2.43
%
 
1,827,612

 
12,319

 
2.73
%
    FHLB stock and other investments
519,309

 
2,029

 
1.57
%
 
463,615

 
2,241

 
1.92
%
 
405,660

 
2,675

 
2.67
%
Total interest earning assets
$
14,491,190

 
$
166,868

 
4.63
%
 
$
14,255,979

 
$
165,773

 
4.61
%
 
$
14,321,441

 
$
173,130

 
4.90
%
 
 
 
 
   
 
 
 
 
 
   
 
 
 
 
 
 
 
INTEREST BEARING LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Demand, interest bearing
$
4,204,406

 
$
14,880

 
1.42
%
 
$
3,682,300

 
$
14,924

 
1.61
%
 
$
3,042,524

 
$
12,987

 
1.73
%
    Savings
274,075

 
808

 
1.19
%
 
265,008

 
748

 
1.12
%
 
223,531

 
565

 
1.03
%
    Time deposits
4,900,405

 
25,425

 
2.09
%
 
5,148,092

 
29,756

 
2.29
%
 
5,936,842

 
33,295

 
2.27
%
    Total interest bearing deposits
9,378,886

 
41,113

 
1.76
%
 
9,095,400

 
45,428

 
1.98
%
 
9,202,897

 
46,847

 
2.06
%
    FHLB advances
594,890

 
2,647

 
1.79
%
 
608,052

 
2,921

 
1.91
%
 
810,857

 
2,614

 
1.31
%
    Convertible notes
199,960

 
2,346

 
4.64
%
 
198,669

 
2,334

 
4.60
%
 
194,969

 
2,298

 
4.71
%
    Subordinated debentures
99,252

 
1,471

 
5.86
%
 
98,972

 
1,582

 
6.25
%
 
98,126

 
1,763

 
7.19
%
Total interest bearing liabilities
$
10,272,988

 
$
47,577

 
1.86
%
 
$
10,001,093

 
$
52,265

 
2.07
%
 
$
10,306,849

 
$
53,522

 
2.11
%
Noninterest bearing demand deposits
2,963,136

 
 
 
 
 
2,999,048

 
 
 
 
 
2,886,746

 
 
 
 
Total funding liabilities/cost of funds
$
13,236,124

 
 
 
1.45
%
 
$
13,000,141

 
 
 
1.60
%
 
$
13,193,595

 
 
 
1.65
%
Net interest income/net interest spread
 
 
$
119,291

 
2.77
%
 
 
 
$
113,508

 
2.54
%
 
 
 
$
119,608

 
2.79
%
Net interest margin
 
 
 
 
3.31
%
 
 
 
 
 
3.16
%
 
 
 
 
 
3.39
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Noninterest bearing demand deposits
$
2,963,136

 
$

 
%
 
$
2,999,048

 
$

 
%
 
$
2,886,746

 
$

 
%
    Interest bearing deposits
9,378,886

 
41,113

 
1.76
%
 
9,095,400

 
45,428

 
1.98
%
 
9,202,897

 
46,847

 
2.06
%
Total deposits
$
12,342,022

 
$
41,113

 
1.34
%
 
$
12,094,448

 
$
45,428

 
1.49
%
 
$
12,089,643

 
$
46,847

 
1.57
%
 
 
 
 
 
 
 
 
 
 
 
 

Table Page 4

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

 
 Three Months Ended
AVERAGE BALANCES:
3/31/2020
 
12/31/2019
 
% change
 
3/31/2019
 
% change
Loans receivable, including loans held for sale
$
12,259,848

 
$
12,036,477

 
2
 %
 
$
12,088,169

 
1
 %
Investments
2,231,342

 
2,219,502

 
1
 %
 
2,233,272

 
 %
Interest earning assets
14,491,190

 
14,255,979

 
2
 %
 
14,321,441

 
1
 %
Total assets
15,446,807

 
15,228,488

 
1
 %
 
15,290,338

 
1
 %
 
 
 
 
 
 
 
 
 
 
Interest bearing deposits
9,378,886

 
9,095,400

 
3
 %
 
9,202,897

 
2
 %
Interest bearing liabilities
10,272,988

 
10,001,093

 
3
 %
 
10,306,849

 
 %
Noninterest bearing demand deposits
2,963,136

 
2,999,048

 
(1
)%
 
2,886,746

 
3
 %
Stockholders’ equity
2,027,595

 
2,034,231

 
 %
 
1,920,492

 
6
 %
Net interest earning assets
4,218,202

 
4,254,886

 
(1
)%
 
4,014,592

 
5
 %
 
 
 
 
 
 
 
 
 
 
LOAN PORTFOLIO COMPOSITION:
3/31/2020
 
12/31/2019
 
% change
 
3/31/2019
 
% change
Commercial loans
$
3,067,132

 
$
2,719,818

 
13
 %
 
$
2,330,776

 
32
 %
Real estate loans
8,681,222

 
8,666,901

 
 %
 
8,716,128

 
 %
Consumer and other loans
835,062

 
889,288

 
(6
)%
 
1,007,100

 
(17
)%
    Loans, net of deferred loan fees and costs
12,583,416

 
12,276,007

 
3
 %
 
12,054,004

 
4
 %
Allowance for credit losses
(144,923
)
 
(94,144
)
 
54
 %
 
(94,217
)
 
54
 %
    Loan receivable, net
$
12,438,493

 
$
12,181,863

 
2
 %
 
$
11,959,787

 
4
 %
 
 
 
 
 
 
 
 
 
 
REAL ESTATE LOANS BY PROPERTY TYPE:
3/31/2020
 
12/31/2019
 
% change
 
3/31/2019
 
% change
Retail buildings
$
2,314,885

 
$
2,298,872

 
1
 %
 
$
2,345,411

 
(1
)%
Hotels/motels
1,706,082

 
1,709,189

 
 %
 
1,692,193

 
1
 %
Gas stations/car washes
852,077

 
844,081

 
1
 %
 
964,706

 
(12
)%
Mixed-use facilities
770,825

 
785,882

 
(2
)%
 
746,288

 
3
 %
Warehouses
1,024,832

 
1,030,876

 
(1
)%
 
951,141

 
8
 %
Multifamily
481,425

 
465,397

 
3
 %
 
460,514

 
5
 %
Other
1,531,096

 
1,532,604

 
 %
 
1,555,875

 
(2
)%
Total
$
8,681,222

 
$
8,666,901

 
 %
 
$
8,716,128

 
 %
 
 
 
 
 
 
 
 
 
 
DEPOSIT COMPOSITION
3/31/2020
 
12/31/2019
 
% change
 
3/31/2019
 
% change
  Noninterest bearing demand deposits
$
3,010,143

 
$
3,108,687

 
(3
)%
 
$
2,948,751

 
2
 %
  Money market and other
4,851,000

 
3,985,556

 
22
 %
 
3,086,920

 
57
 %
  Saving deposits
272,577

 
274,151

 
(1
)%
 
223,562

 
22
 %
  Time deposits
4,702,847

 
5,158,970

 
(9
)%
 
5,989,963

 
(21
)%
    Total deposit balances
$
12,836,567

 
$
12,527,364

 
2
 %
 
$
12,249,196

 
5
 %
 
 
 
 
 
 
 
 
 
 
DEPOSIT COMPOSITION (%)
3/31/2020
 
12/31/2019
 
 
 
3/31/2019
 
 
  Noninterest bearing demand deposits
23.5
%
 
24.8
%
 
 
 
24.1
%
 
 
  Money market and other
37.8
%
 
31.8
%
 
 
 
25.2
%
 
 
  Saving deposits
2.1
%
 
2.2
%
 
 
 
1.8
%
 
 
  Time deposits
36.6
%
 
41.2
%
 
 
 
48.9
%
 
 
    Total deposit balances
100.0
%
 
100.0
%
 
 
 
100.0
%
 
 

Table Page 5

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


 
 
 
 
 
 
 
 
 
 
CAPITAL RATIOS:
3/31/2020
 
12/31/2019
 
3/31/2019
 
 
 
 
  Total stockholders’ equity
$
2,018,088

 
$
2,036,011

 
$
1,946,211

 
 
 
 
  Common equity tier 1 ratio
11.44
%
 
11.76
%
 
11.59
%
 
 
 
 
  Tier 1 risk-based capital ratio
12.19
%
 
12.51
%
 
12.36
%
 
 
 
 
  Total risk-based capital ratio
13.08
%
 
13.23
%
 
13.10
%
 
 
 
 
  Tier 1 leverage ratio
10.88
%
 
11.22
%
 
10.66
%
 
 
 
 
  Total risk weighted assets
$
13,350,246

 
$
13,208,299

 
$
12,816,917

 
 
 
 
  Book value per common share
$
16.38

 
$
16.19

 
$
15.37

 
 
 
 
  Tangible common equity to tangible assets 1
9.92
%
 
10.27
%
 
9.84
%
 
 
 
 
  Tangible common equity per share 1
$
12.52

 
$
12.40

 
$
11.59

 
 
 
 
 
 
 
 
 
 
 
 
 
 
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:
3/31/2020
 
12/31/2019
 
9/30/2019
 
6/30/2019
 
3/31/2019
Balance at beginning of period
$
94,144

 
$
93,882

 
$
94,066

 
$
94,217

 
$
92,557

CECL day 1 adoption impact
26,200

 

 

 

 

Provision for credit losses
28,000

 
1,000

 
2,100

 
1,200

 
3,000

Recoveries
2,536

 
939

 
780

 
725

 
1,292

Charge offs
(5,957
)
 
(1,677
)
 
(2,602
)
 
(2,076
)
 
(1,754
)
PCI allowance adjustment

 

 
(462
)
 

 
(878
)
Balance at end of period
$
144,923

 
$
94,144

 
$
93,882

 
$
94,066

 
$
94,217

Net charge offs/average loans receivable (annualized)
0.11
%
 
0.02
%
 
0.06
%
 
0.05
%
 
0.02
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
NET CHARGED OFFS (RECOVERIES) LOANS BY TYPE:
3/31/2020
 
12/31/2019
 
9/30/2019
 
6/30/2019
 
3/31/2019
Real estate loans
$
2,230

 
$
203

 
$
951

 
$
(388
)
 
$
(1,067
)
Commercial loans
676

 
245

 
596

 
1,399

 
1,250

Consumer loans
515

 
290

 
275

 
340

 
279

   Total net charge offs
$
3,421

 
$
738

 
$
1,822

 
$
1,351

 
$
462

 
 
 
 
 
 
 
 
 
 


Table Page 6

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

NONPERFORMING ASSETS:
3/31/2020
 
12/31/2019
 
9/30/2019
 
6/30/2019
 
3/31/2019
Loans on nonaccrual status 3
$
72,639

 
$
54,785

 
$
42,235

 
$
64,934

 
$
86,637

Delinquent loans 90 days or more on accrual status
387

 
7,547

 
398

 
353

 
387

Accruing troubled debt restructured loans
45,860

 
35,709

 
34,717

 
40,731

 
45,204

Total nonperforming loans
118,886

 
98,041

 
77,350

 
106,018

 
132,228

Other real estate owned
23,039

 
24,091

 
19,374

 
5,644

 
6,258

Total nonperforming assets
$
141,925

 
$
122,132

 
$
96,724

 
$
111,662

 
$
138,486

Nonperforming assets/total assets
0.89
%
 
0.78
%
 
0.63
%
 
0.73
%
 
0.90
%
Nonperforming assets/loans receivable & OREO
1.13
%
 
0.99
%
 
0.80
%
 
0.93
%
 
1.15
%
Nonperforming assets/total capital
7.03
%
 
6.00
%
 
4.76
%
 
5.60
%
 
7.12
%
Nonperforming loans/loans receivable
0.94
%
 
0.80
%
 
0.64
%
 
0.89
%
 
1.10
%
Nonaccrual loans/loans receivable
0.58
%
 
0.45
%
 
0.35
%
 
0.54
%
 
0.72
%
Allowance for credit losses/loans receivable
1.15
%
 
0.77
%
 
0.78
%
 
0.79
%
 
0.78
%
Allowance for credit losses/nonaccrual loans
199.51
%
 
171.84
%
 
222.28
%
 
144.86
%
 
108.75
%
Allowance for credit losses/nonperforming loans
121.90
%
 
96.03
%
 
121.37
%
 
88.73
%
 
71.25
%
Allowance for credit losses/nonperforming assets
102.11
%
 
77.08
%
 
97.06
%
 
84.24
%
 
68.03
%
 
 
 
 
 
 
 
 
 
 
3    Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $28.8 million,$28.1 million, $37.3 million, $32.1 million, and $30.5 million at March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019, and March 31, 2019, respectively.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONACCRUAL LOANS BY TYPE: