8-K
HOPE BANCORP INC (HOPE)
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 22, 2025
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 22, 2025, 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, 2025. A copy of the April 22, 2025, news release is furnished as Exhibit 99.1 and incorporated herein by reference.
Item 7.01. Regulation FD Disclosure
The Company previously announced that it will host an investor conference call on Tuesday, April 22, 2025, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended and as of March 31, 2025. A presentation to accompany the conference call (“Earnings Presentation”), which contains certain historical and forward-looking information relating to the Company, has been made available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. A copy of the Earnings Presentation is furnished as Exhibit 99.2 and incorporated herein by reference.
The information furnished under Item 2.02, Item 7.01 and exhibits 99.1, and 99.2 under Item 9.01 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to liabilities under that Section, nor shall they be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be set forth as a specific reference in such filing.
Item 8.01 Other Events.
On April 22, 2025, 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 16, 2025, to all stockholders of record as of the close of business on May 2, 2025. A copy of the April 22, 2025, news release is furnished as Exhibit 99.3 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description of Exhibit |
|---|---|
| 99.1 | News release, datedApril 22, 2025, concerning the results of operations and financial condition for thefirstquarter ended and as ofMarch 31, 2025. |
| 99.2 | 2025hope-1q25deck.htmFirstQuarter Earnings Presentation, datedApril 22, 2025. |
| 99.3 | News release, datedApril 22, 2025, announcing the declaration of a quarterly cash dividend. |
| 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 22, 2025 | By: | /s/ Kevin S. Kim |
| Kevin S. Kim | ||
| Chairman, President and Chief Executive Officer |
Document
News Release
HOPE BANCORP REPORTS 2025 FIRST QUARTER FINANCIAL RESULTS
LOS ANGELES – April 22, 2025 – 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, 2025. For the three months ended March 31, 2025, net income totaled $21.1 million, or $0.17 per diluted common share. Excluding notable items(1), net income for the first quarter of 2025 was $22.9 million, or $0.19 per diluted common share. In the fourth quarter of 2024, net income was $24.3 million, or $0.20 per diluted common share.
The Company completed its acquisition of Honolulu-based Territorial Bancorp Inc. (“Territorial”), the holding company of Territorial Savings Bank, effective April 2, 2025.
“We ended the 2025 first quarter with all capital ratios increasing quarter-over-quarter and our tangible common equity ratio(2) up 15 basis points to 10.20% as of March 31, 2025,” said Kevin S. Kim, Chairman, President and Chief Executive Officer. “We continued to focus on enhancing our deposit mix, and growth in customer deposits more than offset planned reductions in brokered time deposits.
“Capitalizing on our position of strength, we completed the merger of Territorial Bancorp Inc. following the close of the quarter, effectively becoming the largest regional bank that caters to multicultural customers across the continental United States and Hawaii,” continued Kim. “This acquisition bolsters our balance sheet with the addition of approximately $1.7 billion of core, low-cost deposits and $1.0 billion of residential mortgage loans, after preliminary acquisition accounting adjustments. I would like to thank all our teammates at both Territorial Savings and Bank of Hope for their dedication and hard work in bringing this merger to fruition. We are excited about this combination and look forward to preserving and building upon the 100-plus year legacy of the Territorial brand, culture and commitment to local communities as Territorial Savings, a division of Bank of Hope.
“Our healthy levels of capital and ample liquidity provide us a robust cushion to support prudent growth opportunities, navigate emerging macroeconomic and geopolitical volatility, and continue investing in our organization,” said Kim.
Operating Results for the 2025 First Quarter
Net interest income and net interest margin. Net interest income before provision for credit losses for the 2025 first quarter totaled $100.8 million, a decrease of $1.3 million, or 1%, from $102.1 million in the immediately preceding fourth quarter, primarily driven by the impact of lower interest rates on floating rate loans, lower average loan balances and two fewer days in the quarter, partially offset by a lower cost of interest bearing deposits. Net interest margin for the 2025 first quarter expanded by four basis points to 2.54%, up from 2.50% in the 2024 fourth quarter. The Federal Funds target rate was cut by an aggregate 50 basis points during the 2024 fourth quarter, impacting average yields and rates during the 2025 first quarter.
Noninterest income. Noninterest income for the 2025 first quarter totaled $15.7 million, compared with $15.9 million in the immediately preceding fourth quarter. The 2024 fourth quarter noninterest income included a one-time net gain of $1.0 million related to the sale of two branches in Virginia. Excluding the gain on sale of branches, noninterest income for the 2025 first quarter was up 5% from $14.9 million in the fourth quarter of 2024. The Company recorded net gains on the sale of SBA loans of $3.1 million in each of the 2025 first and 2024 fourth quarters. In the first quarter of 2025, the Company sold $49.9 million of SBA loans, compared with $48.4 million in the immediately preceding fourth quarter.
(1) Net income excluding notable items is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 9 through 11.
(2) Tangible common equity ratio is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 9 through 11.
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Noninterest expense. Noninterest expense for the 2025 first quarter totaled $83.9 million, compared with $77.6 million in the immediately preceding fourth quarter and $84.8 million in the year-ago first quarter. Excluding notable items, which consisted primarily of merger-related expenses in the first quarter of 2025, noninterest expense for the 2025 first quarter was $81.3 million, up 6% compared with $77.0 million for the 2024 fourth quarter and down 1% compared with $82.4 million for the 2024 first quarter. The quarter-over-quarter increase in noninterest expense primarily reflected payroll taxes, bonus expense true-ups and vacation accrual payouts, all of which are typically higher in the first quarter of the year. This was partially offset by a quarter-over-quarter decrease in earned interest credit expense, which was driven by a lower average balance of related deposits and the cumulative impact of Federal Funds target rate cuts in 2024.
Tax rate. The effective tax rate for the 2025 first quarter was 24.2%, compared with 20.0% in the fourth quarter of 2024 and 27.9% in the year-ago first quarter. The effective tax rate in both the first quarter of 2025 and the fourth quarter of 2024 reflected the positive impact of investments in renewable energy tax credits. For the 2024 full year, the effective tax rate was 25.1%.
Balance Sheet Summary
Cash and investment securities. At March 31, 2025, cash and due from banks totaled $733.5 million, compared with $458.2 million at December 31, 2024. Investment securities totaled $2.09 billion at March 31, 2025, and $2.08 billion at December 31, 2024.
As of the close of the Territorial merger, Territorial had $86.8 million in cash and cash equivalents. Territorial’s investment securities portfolio was sold effective April 2, 2025, at a market value of $531.1 million. The Company notes that this news release presents preliminary, unaudited financial information for Territorial, which may be subject to change.
Loans. At March 31, 2025, loans receivable, which excludes loans held for sale, totaled $13.34 billion, a decrease of 2% from $13.62 billion at December 31, 2024. Compared with December 31, 2024, residential mortgage loans increased 7%, offset by a 5% decrease in commercial and industrial loans and a 2% decrease in commercial real estate loans.
The following table sets forth the loan portfolio composition at March 31, 2025, December 31, 2024, and March 31, 2024:
| (dollars in thousands) (unaudited) | 3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Percentage | Balance | Percentage | Balance | Percentage | |||||||
| Commercial real estate (“CRE”) loans | $ | 8,377,106 | 62.8 | % | $ | 8,527,008 | 62.6 | % | $ | 8,707,673 | 63.5 | % |
| Commercial and industrial (“C&I”) loans | 3,756,046 | 28.2 | % | 3,967,596 | 29.1 | % | 4,041,063 | 29.4 | % | |||
| Residential mortgage and other loans | 1,202,142 | 9.0 | % | 1,123,668 | 8.2 | % | 970,442 | 7.1 | % | |||
| Loans receivable | 13,335,294 | 100.0 | % | 13,618,272 | 99.9 | % | 13,719,178 | 100.0 | % | |||
| Loans held for sale | 183 | — | % | 14,491 | 0.1 | % | 2,763 | — | % | |||
| Gross loans | $ | 13,335,477 | 100.0 | % | $ | 13,632,763 | 100.0 | % | $ | 13,721,941 | 100.0 | % |
As of the close of the Territorial merger, Territorial’s loans receivable totaled approximately $1.06 billion after preliminary acquisition accounting discounts.
Deposits. Total deposits of $14.49 billion at March 31, 2025, increased 1% from $14.33 billion at December 31, 2024. The quarter-over-quarter increase in deposits primarily reflected a 5% increase in money market deposits. Customer deposits increased quarter-over-quarter, offsetting a planned reduction in brokered time deposits.
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The following table sets forth the deposit composition at March 31, 2025, December 31, 2024, and March 31, 2024:
| (dollars in thousands) (unaudited) | 3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Percentage | Balance | Percentage | Balance | Percentage | |||||||
| Noninterest bearing demand deposits | $ | 3,362,842 | 23.2 | % | $ | 3,377,950 | 23.6 | % | $ | 3,652,592 | 24.7 | % |
| Money market, interest bearing demand, and savings deposits | 5,410,471 | 37.3 | % | 5,175,735 | 36.1 | % | 5,313,064 | 36.0 | % | |||
| Time deposits | 5,715,006 | 39.5 | % | 5,773,804 | 40.3 | % | 5,787,761 | 39.3 | % | |||
| Total deposits | $ | 14,488,319 | 100.0 | % | $ | 14,327,489 | 100.0 | % | $ | 14,753,417 | 100.0 | % |
| Gross loan-to-deposit ratio | 92.0 | % | 95.2 | % | 93.0 | % |
As of the close of the Territorial merger, Territorial’s deposits totaled $1.67 billion after preliminary acquisition accounting adjustments; the weighted average cost of deposits was 1.96%.
Borrowings. Federal Home Loan Bank and Federal Reserve Bank borrowings decreased to $100.0 million at March 31, 2025 from $239.0 million at December 31, 2024.
As of the close of the Territorial merger, Territorial’s Federal Home Loan Bank borrowings totaled $160.8 million, of which $125.0 million was paid off effective April 2, 2025.
Credit Quality and Allowance for Credit Losses
Nonperforming assets. Nonperforming assets were $83.9 million, or 0.49% of total assets, at March 31, 2025, a quarter-over-quarter decrease of 8% from $90.8 million, or 0.53% of total assets, at December 31, 2024, and a year-over-year decrease of 21% from $106.8 million, or 0.59% of total assets, at March 31, 2024.
The following table sets forth the components of nonperforming assets at March 31, 2025, December 31, 2024, and March 31, 2024:
| (dollars in thousands) (unaudited) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Loans on nonaccrual status (1) | $ | 83,808 | $ | 90,564 | $ | 59,526 | |||
| Accruing delinquent loans past due 90 days or more | 98 | 229 | 47,290 | ||||||
| Total nonperforming loans | 83,906 | 90,793 | 106,816 | ||||||
| Other real estate owned | — | — | — | ||||||
| Total nonperforming assets | $ | 83,906 | $ | 90,793 | $ | 106,816 | |||
| Nonperforming assets/total assets | 0.49 | % | 0.53 | % | 0.59 | % |
_____________________________________
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $11.8 million, $12.8 million and $10.9 million at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
As of the close of the Territorial merger, Territorial’s nonperforming assets amounted to $1.9 million, before acquisition accounting adjustments.
Net charge offs. The Company recorded net charge offs of $8.3 million in the 2025 first quarter, equivalent to 0.25%, annualized, of average loans. This compares with net charge offs of $12.8 million, or 0.38%, annualized, of average loans in the immediately preceding fourth quarter.
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The following table sets forth net charge offs and annualized net charge off ratios for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024:
| For the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) (unaudited) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||
| Net charge offs | $ | 8,315 | $ | 12,843 | $ | 3,536 | |||
| Annualized net charge offs/average loans | 0.25 | % | 0.38 | % | 0.10 | % |
Allowance for credit losses and provision for credit losses. The allowance for credit losses totaled $147.4 million at March 31, 2025, compared with $150.5 million at December 31, 2024. The allowance coverage ratio was 1.11% of loans receivable at March 31, 2025, unchanged from 1.11% at December 31, 2024.
The following table sets forth the allowance for credit losses and the coverage ratios at March 31, 2025, December 31, 2024, and March 31, 2024:
| (dollars in thousands) (unaudited) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Allowance for credit losses | $ | 147,412 | $ | 150,527 | $ | 158,758 | |||
| Allowance for credit losses/loans receivable | 1.11 | % | 1.11 | % | 1.16 | % |
For the 2025 first quarter, the Company recorded a provision for credit losses of $4.8 million, compared with $10.0 million in the immediately preceding fourth quarter. The quarter-over-quarter change in the provision for credit losses primarily reflected the sequential reduction in net charge offs.
Capital
At March 31, 2025, the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. All regulatory capital ratios increased quarter-over-quarter and year-over-year.
The following table sets forth the capital ratios for the Company at March 31, 2025, December 31, 2024, and March 31, 2024:
| (unaudited) | 3/31/2025 | 12/31/2024 | 3/31/2024 | Minimum Guideline for “Well-Capitalized” |
|---|---|---|---|---|
| Common Equity Tier 1 Capital Ratio | 13.28% | 13.06% | 12.47% | 6.50% |
| Tier 1 Capital Ratio | 14.02% | 13.79% | 13.17% | 8.00% |
| Total Capital Ratio | 15.06% | 14.78% | 14.19% | 10.00% |
| Leverage Ratio | 11.92% | 11.83% | 10.42% | 5.00% |
At March 31, 2025, total stockholders’ equity was $2.16 billion, or $17.84 per common share, an increase of 1% when compared with $2.13 billion, or $17.68 per common share, at December 31, 2024. Tangible common equity (“TCE”) per share(3) increased to $13.99 at March 31, 2025, up from $13.81 at December 31, 2024. The TCE ratio was 10.20% at March 31, 2025, up 15 basis points from 10.05% at December 31, 2024, and up 87 basis points from 9.33% at March 31, 2024.
(3) TCE per share is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 9 through 11.
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The following table sets forth the TCE per share and the TCE ratio at March 31, 2025, December 31, 2024, and March 31, 2024:
| (unaudited) | 3/31/2025 | 12/31/2024 | 3/31/2024 |
|---|---|---|---|
| TCE per share | $13.99 | $13.81 | $13.63 |
| TCE ratio | 10.20% | 10.05% | 9.33% |
Pursuant to the Territorial merger agreement, on April 2, 2025, Territorial shareholders received 0.8048 shares of Hope Bancorp common stock in exchange for each share of Territorial common stock; accordingly, the Company issued 6,976,754 shares, or $73.3 million of equity, as part of the transaction.
Investor Conference Call
The Company previously announced that it will host an investor conference call on Tuesday, April 22, 2025, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review unaudited financial results for its first quarter ended March 31, 2025. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for at least one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through April 29, 2025, replay access code 1111094.
Non-GAAP Financial Metrics
This news release and accompanying financial tables contain certain non-GAAP financial measure disclosures, including net income excluding notable items, earnings per share excluding notable items, PPNR, PPNR excluding notable items, noninterest expense excluding notable items, TCE per share, TCE ratio, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operational performance and the Company’s capital levels and has included these figures in response to market participant interest in these financial metrics. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 9 through 11.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the only regional Korean American bank in the United States with $17.07 billion in total assets as of March 31, 2025. With the addition of Territorial Savings, a division of Bank of Hope, effective April 2, 2025, the Company became the largest regional bank catering to multicultural customers across the continental United States and Hawaii. Headquartered in Los Angeles, the Bank provides a full suite of commercial, corporate and consumer loans, deposit and fee-based products and services, including commercial and commercial real estate lending, SBA lending, residential mortgage and other consumer lending; treasury management services, foreign currency exchange solutions, interest rate derivative products, and international trade financing, among others. The Bank operates 46 full-service branches in California, New York, New Jersey, Washington, Texas, Illinois, New York, New Jersey, Alabama and Georgia under the Bank of Hope banner, and 29 branches in Hawaii under the Territorial Savings banner. The Bank also operates SBA loan production offices, commercial loan production offices, and residential mortgage loan production offices throughout the United States, and a representative office in Seoul, South Korea. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to www.bankofhope.com for Bank of Hope and www.tsbhawaii.bank for Territorial Savings, a division of Bank of Hope. By including the foregoing website address links, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.
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Forward-Looking Statements
Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” and similar expressions. With respect to any such forward-looking statements, Hope Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. With the consummation of the merger of Territorial Bancorp, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Hope Bancorp and Territorial Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; and deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees and customers, may be greater than expected. Other risks and uncertainties include, but are not limited to: possible renewed deterioration in economic conditions in Hope Bancorp’s areas of operation or elsewhere; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying Hope Bancorp’s allowances for credit losses; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp; the impact of U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and geopolitical instability; and risks from natural disasters. For additional information concerning these and other risk factors, see Hope Bancorp’s most recent Annual Report on Form 10-K. Hope Bancorp does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
Contacts:
| Julianna Balicka | Angie Yang |
|---|---|
| EVP & Chief Financial Officer | SVP, Director of Investor Relations |
| 213-235-3235 | 213-251-2219 |
| julianna.balicka@bankofhope.com | angie.yang@bankofhope.com |
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Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share data)
| Assets: | 3/31/2025 | 12/31/2024 | % change | 3/31/2024 | % change | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and due from banks | $ | 733,482 | $ | 458,199 | 60 | % | $ | 1,185,296 | (38) | % |
| Investment securities | 2,088,586 | 2,075,628 | 1 | % | 2,277,990 | (8) | % | |||
| Federal Home Loan Bank (“FHLB”) stock and other investments | 103,486 | 57,196 | 81 | % | 61,175 | 69 | % | |||
| Gross loans, including loans held for sale | 13,335,477 | 13,632,763 | (2) | % | 13,721,941 | (3) | % | |||
| Allowance for credit losses | (147,412) | (150,527) | (2) | % | (158,758) | (7) | % | |||
| Accrued interest receivable | 49,986 | 51,169 | (2) | % | 60,316 | (17) | % | |||
| Premises and equipment, net | 52,296 | 51,759 | 1 | % | 50,541 | 3 | % | |||
| Goodwill and intangible assets | 466,405 | 466,781 | — | % | 467,984 | — | % | |||
| Other assets | 386,010 | 411,040 | (6) | % | 421,729 | (8) | % | |||
| Total assets | $ | 17,068,316 | $ | 17,054,008 | — | % | $ | 18,088,214 | (6) | % |
| Liabilities: | ||||||||||
| Deposits | $ | 14,488,319 | $ | 14,327,489 | 1 | % | $ | 14,753,417 | (2) | % |
| FHLB and Federal Reserve Bank (“FRB”) borrowings | 100,000 | 239,000 | (58) | % | 795,634 | (87) | % | |||
| Subordinated debentures and convertible notes, net | 109,921 | 109,584 | — | % | 108,592 | 1 | % | |||
| Accrued interest payable | 81,436 | 93,784 | (13) | % | 122,467 | (34) | % | |||
| Other liabilities | 128,607 | 149,646 | (14) | % | 195,834 | (34) | % | |||
| Total liabilities | $ | 14,908,283 | $ | 14,919,503 | — | % | $ | 15,975,944 | (7) | % |
| Stockholders’ Equity: | ||||||||||
| Common stock, $0.001 par value | $ | 138 | $ | 138 | — | % | $ | 138 | — | % |
| Additional paid-in capital | 1,445,153 | 1,445,373 | — | % | 1,439,484 | — | % | |||
| Retained earnings | 1,185,721 | 1,181,533 | — | % | 1,159,593 | 2 | % | |||
| Treasury stock, at cost | (264,667) | (264,667) | — | % | (264,667) | — | % | |||
| Accumulated other comprehensive loss, net | (206,312) | (227,872) | 9 | % | (222,278) | 7 | % | |||
| Total stockholders’ equity | 2,160,033 | 2,134,505 | 1 | % | 2,112,270 | 2 | % | |||
| Total liabilities and stockholders’ equity | $ | 17,068,316 | $ | 17,054,008 | — | % | $ | 18,088,214 | (6) | % |
| Common stock shares – authorized | 300,000,000 | 300,000,000 | 150,000,000 | |||||||
| Common stock shares – outstanding | 121,074,988 | 120,755,658 | 120,610,029 | |||||||
| Treasury stock shares | 17,382,835 | 17,382,835 | 17,382,835 |
Table Page 1
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
| Three Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 3/31/2025 | 12/31/2024 | % change | 3/31/2024 | % change | ||||||
| Interest and fees on loans | $ | 194,961 | $ | 203,828 | (4) | % | $ | 213,626 | (9) | % |
| Interest on investment securities | 15,892 | 16,930 | (6) | % | 18,049 | (12) | % | |||
| Interest on cash and deposits at other banks | 5,205 | 4,694 | 11 | % | 27,183 | (81) | % | |||
| Interest on other investments and FHLB dividends | 1,108 | 1,169 | (5) | % | 816 | 36 | % | |||
| Total interest income | 217,166 | 226,621 | (4) | % | 259,674 | (16) | % | |||
| Interest on deposits | 113,585 | 121,645 | (7) | % | 124,033 | (8) | % | |||
| Interest on borrowings | 2,764 | 2,841 | (3) | % | 20,594 | (87) | % | |||
| Total interest expense | 116,349 | 124,486 | (7) | % | 144,627 | (20) | % | |||
| Net interest income before provision | 100,817 | 102,135 | (1) | % | 115,047 | (12) | % | |||
| Provision for credit losses | 4,800 | 10,000 | (52) | % | 2,600 | 85 | % | |||
| Net interest income after provision | 96,017 | 92,135 | 4 | % | 112,447 | (15) | % | |||
| Service fees on deposit accounts | 2,921 | 2,809 | 4 | % | 2,587 | 13 | % | |||
| Net gains on sales of SBA loans | 3,131 | 3,063 | 2 | % | — | 100 | % | |||
| Net gains on sales of securities available for sale | — | 837 | (100) | % | — | — | % | |||
| Net gain on branch sales | — | 1,006 | (100) | % | — | — | % | |||
| Other income and fees | 9,636 | 8,166 | 18 | % | 5,699 | 69 | % | |||
| Total noninterest income | 15,688 | 15,881 | (1) | % | 8,286 | 89 | % | |||
| Salaries and employee benefits | 48,460 | 42,016 | 15 | % | 47,577 | 2 | % | |||
| Occupancy | 7,166 | 6,837 | 5 | % | 6,786 | 6 | % | |||
| Furniture and equipment | 5,713 | 5,436 | 5 | % | 5,340 | 7 | % | |||
| Data processing and communications | 2,907 | 2,961 | (2) | % | 2,990 | (3) | % | |||
| FDIC assessment | 2,502 | 2,684 | (7) | % | 2,926 | (14) | % | |||
| FDIC special assessment | — | — | — | % | 1,000 | (100) | % | |||
| Earned interest credit | 3,087 | 4,605 | (33) | % | 5,834 | (47) | % | |||
| Restructuring-related costs (reversals) | 166 | (152) | N/A | 402 | (59) | % | ||||
| Merger-related costs | 2,353 | 735 | 220 | % | 1,044 | 125 | % | |||
| Other noninterest expense | 11,507 | 12,468 | (8) | % | 10,940 | 5 | % | |||
| Total noninterest expense | 83,861 | 77,590 | 8 | % | 84,839 | (1) | % | |||
| Income before income taxes | 27,844 | 30,426 | (8) | % | 35,894 | (22) | % | |||
| Income tax provision | 6,748 | 6,089 | 11 | % | 10,030 | (33) | % | |||
| Net income | $ | 21,096 | $ | 24,337 | (13) | % | $ | 25,864 | (18) | % |
| Earnings per common share – diluted | $ | 0.17 | $ | 0.20 | $ | 0.21 | ||||
| Weighted average shares outstanding – diluted | 121,433,080 | 121,401,285 | 121,020,292 |
Table Page 2
Hope Bancorp, Inc.
Selected Financial Data
Unaudited
| For the Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| Profitability measures (annualized): | 3/31/2025 | 12/31/2024 | 3/31/2024 | |||
| Return on average assets (“ROA”) | 0.49 | % | 0.57 | % | 0.54 | % |
| ROA excluding notable items (1) | 0.54 | % | 0.56 | % | 0.58 | % |
| Return on average equity (“ROE”) | 3.93 | % | 4.51 | % | 4.87 | % |
| ROE excluding notable items (1) | 4.26 | % | 4.46 | % | 5.19 | % |
| Return on average tangible common equity (“ROTCE”) (1) | 5.02 | % | 5.76 | % | 6.24 | % |
| ROTCE excluding notable items (1) | 5.44 | % | 5.69 | % | 6.66 | % |
| Net interest margin | 2.54 | % | 2.50 | % | 2.55 | % |
| Efficiency ratio (not annualized) | 71.98 | % | 65.75 | % | 68.79 | % |
| Efficiency ratio excluding notable items (not annualized) (1) | 69.82 | % | 65.81 | % | 66.81 | % |
| (1) ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 9 through 11. |
Table Page 3
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
| Three Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||||||||||||
| Interest | Annualized | Interest | Annualized | Interest | Annualized | |||||||||||||
| Average | Income/ | Average | Average | Income/ | Average | Average | Income/ | Average | ||||||||||
| Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | ||||||||||
| INTEREST EARNING ASSETS: | ||||||||||||||||||
| Loans, including loans held for sale | $ | 13,455,201 | $ | 194,961 | 5.88 | % | $ | 13,626,965 | $ | 203,828 | 5.95 | % | $ | 13,746,219 | $ | 213,626 | 6.25 | % |
| Investment securities | 2,083,809 | 15,892 | 3.09 | % | 2,177,613 | 16,930 | 3.09 | % | 2,317,154 | 18,049 | 3.13 | % | ||||||
| Interest earning cash and deposits at other banks | 496,512 | 5,205 | 4.25 | % | 416,467 | 4,694 | 4.48 | % | 2,019,769 | 27,183 | 5.41 | % | ||||||
| FHLB stock and other investments | 87,065 | 1,108 | 5.16 | % | 49,388 | 1,169 | 9.42 | % | 48,136 | 816 | 6.82 | % | ||||||
| Total interest earning assets | $ | 16,122,587 | $ | 217,166 | 5.46 | % | $ | 16,270,433 | $ | 226,621 | 5.54 | % | $ | 18,131,278 | $ | 259,674 | 5.76 | % |
| INTEREST BEARING LIABILITIES: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Money market, interest bearing demand and savings | $ | 5,452,632 | $ | 50,619 | 3.76 | % | $ | 5,187,715 | $ | 50,510 | 3.87 | % | $ | 5,072,782 | $ | 50,145 | 3.98 | % |
| Time deposits | 5,674,095 | 62,966 | 4.50 | % | 5,856,439 | 71,135 | 4.83 | % | 5,985,501 | 73,888 | 4.96 | % | ||||||
| Total interest bearing deposits | 11,126,727 | 113,585 | 4.14 | % | 11,044,154 | 121,645 | 4.38 | % | 11,058,283 | 124,033 | 4.51 | % | ||||||
| FHLB and FRB borrowings | 121,400 | 356 | 1.19 | % | 113,533 | 248 | 0.87 | % | 1,683,334 | 17,853 | 4.27 | % | ||||||
| Subordinated debentures and convertible notes | 105,815 | 2,408 | 9.10 | % | 105,482 | 2,593 | 9.62 | % | 104,493 | 2,741 | 10.38 | % | ||||||
| Total interest bearing liabilities | $ | 11,353,942 | $ | 116,349 | 4.16 | % | $ | 11,263,169 | $ | 124,486 | 4.40 | % | $ | 12,846,110 | $ | 144,627 | 4.53 | % |
| Noninterest bearing demand deposits | 3,344,732 | 3,546,613 | 3,803,870 | |||||||||||||||
| Total funding liabilities/cost of funds | $ | 14,698,674 | 3.21 | % | $ | 14,809,782 | 3.34 | % | $ | 16,649,980 | 3.49 | % | ||||||
| Net interest income/net interest spread | $ | 100,817 | 1.30 | % | $ | 102,135 | 1.14 | % | $ | 115,047 | 1.23 | % | ||||||
| Net interest margin | 2.54 | % | 2.50 | % | 2.55 | % | ||||||||||||
| Cost of deposits: | ||||||||||||||||||
| Noninterest bearing demand deposits | $ | 3,344,732 | $ | — | — | % | $ | 3,546,613 | $ | — | — | % | $ | 3,803,870 | $ | — | — | % |
| Interest bearing deposits | 11,126,727 | 113,585 | 4.14 | % | 11,044,154 | 121,645 | 4.38 | % | 11,058,283 | 124,033 | 4.51 | % | ||||||
| Total deposits | $ | 14,471,459 | $ | 113,585 | 3.18 | % | $ | 14,590,767 | $ | 121,645 | 3.32 | % | $ | 14,862,153 | $ | 124,033 | 3.36 | % |
Table Page 4
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
| Three Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| AVERAGE BALANCES: | 3/31/2025 | 12/31/2024 | % change | 3/31/2024 | % change | |||||
| Gross loans, including loans held for sale | $ | 13,455,201 | $ | 13,626,965 | (1) | % | $ | 13,746,219 | (2) | % |
| Investment securities | 2,083,809 | 2,177,613 | (4) | % | 2,317,154 | (10) | % | |||
| Interest earning cash and deposits at other banks | 496,512 | 416,467 | 19 | % | 2,019,769 | (75) | % | |||
| Interest earning assets | 16,122,587 | 16,270,433 | (1) | % | 18,131,278 | (11) | % | |||
| Goodwill and intangible assets | 466,633 | 467,021 | — | % | 468,229 | — | % | |||
| Total assets | 17,084,378 | 17,228,881 | (1) | % | 19,140,775 | (11) | % | |||
| Noninterest bearing demand deposits | 3,344,732 | 3,546,613 | (6) | % | 3,803,870 | (12) | % | |||
| Interest bearing deposits | 11,126,727 | 11,044,154 | 1 | % | 11,058,283 | 1 | % | |||
| Total deposits | 14,471,459 | 14,590,767 | (1) | % | 14,862,153 | (3) | % | |||
| Interest bearing liabilities | 11,353,942 | 11,263,169 | 1 | % | 12,846,110 | (12) | % | |||
| Stockholders’ equity | 2,148,079 | 2,156,858 | — | % | 2,126,333 | 1 | % | |||
| LOAN PORTFOLIO COMPOSITION: | 3/31/2025 | 12/31/2024 | % change | 3/31/2024 | % change | |||||
| Commercial real estate (“CRE”) loans | $ | 8,377,106 | $ | 8,527,008 | (2) | % | $ | 8,707,673 | (4) | % |
| Commercial and industrial (“C&I”) loans | 3,756,046 | 3,967,596 | (5) | % | 4,041,063 | (7) | % | |||
| Residential mortgage and other loans | 1,202,142 | 1,123,668 | 7 | % | 970,442 | 24 | % | |||
| Loans receivable | 13,335,294 | 13,618,272 | (2) | % | 13,719,178 | (3) | % | |||
| Loans held for sale | 183 | 14,491 | (99) | % | 2,763 | (93) | % | |||
| Gross loans | $ | 13,335,477 | $ | 13,632,763 | (2) | % | $ | 13,721,941 | (3) | % |
| CRE LOANS BY PROPERTY TYPE: | 3/31/2025 | 12/31/2024 | % change | 3/31/2024 | % change | |||||
| Multi-tenant retail | $ | 1,574,711 | $ | 1,619,505 | (3) | % | $ | 1,666,153 | (5) | % |
| Industrial warehouses | 1,263,037 | 1,264,703 | — | % | 1,221,852 | 3 | % | |||
| Multifamily | 1,202,577 | 1,208,494 | — | % | 1,212,941 | (1) | % | |||
| Gas stations and car washes | 1,084,310 | 1,027,502 | 6 | % | 1,013,708 | 7 | % | |||
| Mixed-use facilities | 699,776 | 771,695 | (9) | % | 861,613 | (19) | % | |||
| Hotels/motels | 757,814 | 769,635 | (2) | % | 786,198 | (4) | % | |||
| Single-tenant retail | 651,950 | 659,993 | (1) | % | 667,898 | (2) | % | |||
| Office | 347,115 | 394,431 | (12) | % | 401,392 | (14) | % | |||
| All other | 795,816 | 811,050 | (2) | % | 875,918 | (9) | % | |||
| Total CRE loans | $ | 8,377,106 | $ | 8,527,008 | (2) | % | $ | 8,707,673 | (4) | % |
| DEPOSIT COMPOSITION: | 3/31/2025 | 12/31/2024 | % change | 3/31/2024 | % change | |||||
| Noninterest bearing demand deposits | $ | 3,362,842 | $ | 3,377,950 | — | % | $ | 3,652,592 | (8) | % |
| Money market, interest bearing demand, and savings | 5,410,471 | 5,175,735 | 5 | % | 5,313,064 | 2 | % | |||
| Time deposits | 5,715,006 | 5,773,804 | (1) | % | 5,787,761 | (1) | % | |||
| Total deposits | $ | 14,488,319 | $ | 14,327,489 | 1 | % | $ | 14,753,417 | (2) | % |
Table Page 5
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
| CAPITAL & CAPITAL RATIOS: | 3/31/2025 | 12/31/2024 | 3/31/2024 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total stockholders’ equity | $ | 2,160,033 | $ | 2,134,505 | $ | 2,112,270 | ||||||||||||
| Total capital | $ | 2,153,418 | $ | 2,150,810 | $ | 2,130,033 | ||||||||||||
| Common equity tier 1 ratio | 13.28 | % | 13.06 | % | 12.47 | % | ||||||||||||
| Tier 1 capital ratio | 14.02 | % | 13.79 | % | 13.17 | % | ||||||||||||
| Total capital ratio | 15.06 | % | 14.78 | % | 14.19 | % | ||||||||||||
| Leverage ratio | 11.92 | % | 11.83 | % | 10.42 | % | ||||||||||||
| Total risk weighted assets | $ | 14,297,471 | $ | 14,549,658 | $ | 15,011,661 | ||||||||||||
| Book value per common share | $ | 17.84 | $ | 17.68 | $ | 17.51 | ||||||||||||
| Tangible common equity (“TCE”) per share (1) | $ | 13.99 | $ | 13.81 | $ | 13.63 | ||||||||||||
| TCE ratio (1) | 10.20 | % | 10.05 | % | 9.33 | % | ||||||||||||
| (1) TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 9. | ||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES CHANGES: | Three Months Ended | |||||||||||||||||
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||||||
| Balance at beginning of period | $ | 150,527 | $ | 153,270 | $ | 156,019 | $ | 158,758 | $ | 158,694 | ||||||||
| Provision for credit losses on loans | 5,200 | 10,100 | 3,000 | 1,700 | 3,600 | |||||||||||||
| Recoveries | 233 | 704 | 534 | 2,099 | 1,184 | |||||||||||||
| Charge offs | (8,548) | (13,547) | (6,283) | (6,538) | (4,720) | |||||||||||||
| Balance at end of period | $ | 147,412 | $ | 150,527 | $ | 153,270 | $ | 156,019 | $ | 158,758 | ||||||||
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||||||
| Allowance for unfunded loan commitments | $ | 2,323 | $ | 2,723 | $ | 2,823 | $ | 2,543 | $ | 2,843 | ||||||||
| Three Months Ended | ||||||||||||||||||
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||||||
| Provision for credit losses on loans | $ | 5,200 | $ | 10,100 | $ | 3,000 | $ | 1,700 | $ | 3,600 | ||||||||
| Provision (credit) for unfunded loan commitments | (400) | (100) | 280 | (300) | (1,000) | |||||||||||||
| Provision for credit losses | $ | 4,800 | $ | 10,000 | $ | 3,280 | $ | 1,400 | $ | 2,600 |
Table Page 6
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NET LOAN CHARGE OFFS (RECOVERIES): | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||
| CRE loans | $ | 899 | $ | 156 | $ | 372 | $ | 514 | $ | (497) | |||||
| C&I loans | 7,384 | 12,607 | 5,287 | 3,900 | 4,072 | ||||||||||
| Residential mortgage and other loans | 32 | 80 | 90 | 25 | (39) | ||||||||||
| Net loan charge offs | $ | 8,315 | $ | 12,843 | $ | 5,749 | $ | 4,439 | $ | 3,536 | |||||
| Net charge offs/average loans (annualized) | 0.25 | % | 0.38 | % | 0.17 | % | 0.13 | % | 0.10 | % | |||||
| NONPERFORMING ASSETS: | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Loans on nonaccrual status (1) | 83,808 | $ | 90,564 | $ | 103,602 | $ | 67,003 | $ | 59,526 | ||||||
| Accruing delinquent loans past due 90 days or more | 229 | 226 | 273 | 47,290 | |||||||||||
| Total nonperforming loans | 90,793 | 103,828 | 67,276 | 106,816 | |||||||||||
| Other real estate owned (“OREO”) | — | — | — | — | |||||||||||
| Total nonperforming assets | 83,906 | $ | 90,793 | $ | 103,828 | $ | 67,276 | $ | 106,816 | ||||||
| Nonperforming assets/total assets | % | 0.53 | % | 0.60 | % | 0.39 | % | 0.59 | % | ||||||
| Nonperforming loans/loans receivable | % | 0.67 | % | 0.76 | % | 0.50 | % | 0.78 | % | ||||||
| Nonaccrual loans/loans receivable | % | 0.67 | % | 0.76 | % | 0.49 | % | 0.43 | % | ||||||
| Allowance for credit losses/loans receivable | % | 1.11 | % | 1.13 | % | 1.15 | % | 1.16 | % | ||||||
| Allowance for credit losses/nonperforming loans | % | 165.79 | % | 147.62 | % | 231.91 | % | 148.63 | % | ||||||
| (1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling 11.8 million, 12.8 million, 13.1 million, 11.2 million, and 10.9 million, at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. | |||||||||||||||
| NONACCRUAL LOANS BY TYPE: | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||||
| CRE loans | 24,106 | $ | 23,396 | $ | 72,228 | $ | 27,292 | $ | 37,836 | ||||||
| C&I loans | 60,807 | 24,963 | 33,456 | 15,070 | |||||||||||
| Residential mortgage and other loans | 6,361 | 6,411 | 6,255 | 6,620 | |||||||||||
| Total nonaccrual loans | 83,808 | $ | 90,564 | $ | 103,602 | $ | 67,003 | $ | 59,526 |
All values are in US Dollars.
Table Page 7
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE: | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 30 - 59 days past due | $ | 11,927 | $ | 8,681 | $ | 10,746 | $ | 9,073 | $ | 2,273 |
| 60 - 89 days past due | 27,719 | 5,164 | 1,539 | 552 | 313 | |||||
| Total accruing delinquent loans 30-89 days past due | $ | 39,646 | $ | 13,845 | $ | 12,285 | $ | 9,625 | $ | 2,586 |
| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE: | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||
| CRE loans | $ | 4,993 | $ | 3,205 | $ | 816 | $ | 5,586 | $ | 1,639 |
| C&I loans | 27,455 | 1,288 | 9,037 | 2,530 | 551 | |||||
| Residential mortgage and other loans | 7,198 | 9,352 | 2,432 | 1,509 | 396 | |||||
| Total accruing delinquent loans 30-89 days past due | $ | 39,646 | $ | 13,845 | $ | 12,285 | $ | 9,625 | $ | 2,586 |
| CRITICIZED LOANS: | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||
| Special mention loans | $ | 184,659 | $ | 179,073 | $ | 184,443 | $ | 204,167 | $ | 215,183 |
| Classified loans | 264,064 | 270,896 | 321,283 | 243,635 | 206,350 | |||||
| Total criticized loans | $ | 448,723 | $ | 449,969 | $ | 505,726 | $ | 447,802 | $ | 421,533 |
Table Page 8
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
| Reconciliation of GAAP financial measures to non-GAAP financial measures | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below. | |||||||||
| TANGIBLE COMMON EQUITY (“TCE”) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||
| Total stockholders’ equity | $ | 2,160,033 | $ | 2,134,505 | $ | 2,112,270 | |||
| Less: Goodwill and core deposit intangible assets, net | (466,405) | (466,781) | (467,984) | ||||||
| TCE | $ | 1,693,628 | $ | 1,667,724 | $ | 1,644,286 | |||
| Total assets | $ | 17,068,316 | $ | 17,054,008 | $ | 18,088,214 | |||
| Less: Goodwill and core deposit intangible assets, net | (466,405) | (466,781) | (467,984) | ||||||
| Tangible assets | $ | 16,601,911 | $ | 16,587,227 | $ | 17,620,230 | |||
| TCE ratio | 10.20 | % | 10.05 | % | 9.33 | % | |||
| Common shares outstanding | 121,074,988 | 120,755,658 | 120,610,029 | ||||||
| TCE per share | $ | 13.99 | $ | 13.81 | $ | 13.63 | |||
| Three Months Ended | |||||||||
| RETURN ON AVERAGE TANGIBLE COMMON EQUITY (“ROTCE”) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||
| Average stockholders’ equity | $ | 2,148,079 | $ | 2,156,858 | $ | 2,126,333 | |||
| Less: Average goodwill and core deposit intangible assets, net | (466,633) | (467,021) | (468,229) | ||||||
| Average TCE | $ | 1,681,446 | $ | 1,689,837 | $ | 1,658,104 | |||
| Net income | $ | 21,096 | $ | 24,337 | $ | 25,864 | |||
| ROTCE (annualized) | 5.02 | % | 5.76 | % | 6.24 | % |
Table Page 9
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| PRE-PROVISION NET REVENUE (“PPNR”) | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||
| Net interest income before provision for credit losses | $ | 100,817 | $ | 102,135 | $ | 115,047 | |||
| Noninterest income | 15,688 | 15,881 | 8,286 | ||||||
| Revenue | 116,505 | 118,016 | 123,333 | ||||||
| Less: Noninterest expense | 83,861 | 77,590 | 84,839 | ||||||
| PPNR | $ | 32,644 | $ | 40,426 | $ | 38,494 | |||
| Notable items: | |||||||||
| FDIC special assessment expense | $ | — | $ | — | $ | 1,000 | |||
| Restructuring-related costs (gains), net (including gain on branch sales) | 166 | (1,158) | 402 | ||||||
| Merger-related costs | 2,353 | 735 | 1,044 | ||||||
| Total notable items | 2,519 | (423) | 2,446 | ||||||
| PPNR, excluding notable items | $ | 35,163 | $ | 40,003 | $ | 40,940 | |||
| Three Months Ended | |||||||||
| PROFITABILITY RATIOS EXCLUDING NOTABLE ITEMS | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||
| Net income | $ | 21,096 | $ | 24,337 | $ | 25,864 | |||
| Notable items: | |||||||||
| FDIC special assessment expense | — | — | 1,000 | ||||||
| Restructuring-related costs (gains), net (including gain on branch sales) | 166 | (1,158) | 402 | ||||||
| Merger-related costs | 2,353 | 735 | 1,044 | ||||||
| Total notable items | 2,519 | (423) | 2,446 | ||||||
| Less: tax provision | 741 | (125) | 719 | ||||||
| Total notable items, net of tax provision | 1,778 | (298) | 1,727 | ||||||
| Net income excluding notable items | $ | 22,874 | $ | 24,039 | $ | 27,591 | |||
| Diluted common shares | 121,433,080 | 121,401,285 | 121,020,292 | ||||||
| EPS excluding notable items | $ | 0.19 | $ | 0.20 | $ | 0.23 | |||
| Average Assets | $ | 17,084,378 | $ | 17,228,881 | $ | 19,140,775 | |||
| ROA excluding notable items (annualized) | 0.54 | % | 0.56 | % | 0.58 | % | |||
| Average Equity | $ | 2,148,079 | $ | 2,156,858 | $ | 2,126,333 | |||
| ROE excluding notable items (annualized) | 4.26 | % | 4.46 | % | 5.19 | % | |||
| Average TCE | $ | 1,681,446 | $ | 1,689,837 | $ | 1,658,104 | |||
| ROTCE excluding notable items (annualized) | 5.44 | % | 5.69 | % | 6.66 | % |
Table Page 10
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| EFFICIENCY RATIO EXCLUDING NOTABLE ITEMS | 3/31/2025 | 12/31/2024 | 3/31/2024 | ||||||
| Noninterest expense | $ | 83,861 | $ | 77,590 | $ | 84,839 | |||
| Less: notable items: | |||||||||
| FDIC special assessment expense | — | — | (1,000) | ||||||
| Restructuring-related (costs) reversals | (166) | 152 | (402) | ||||||
| Merger-related costs | (2,353) | (735) | (1,044) | ||||||
| Noninterest expense excluding notable items | $ | 81,342 | $ | 77,007 | $ | 82,393 | |||
| Revenue | $ | 116,505 | $ | 118,016 | $ | 123,333 | |||
| Less: notable items: | |||||||||
| Net gain on branch sales | — | (1,006) | — | ||||||
| Revenue excluding notable items | $ | 116,505 | $ | 117,010 | $ | 123,333 | |||
| Efficiency ratio excluding notable items | 69.82 | % | 65.81 | % | 66.81 | % |
Table Page 11
hope-1q25deck
2025 First Quarter Earnings Conference Call April 22, 2025
Forward Looking Statements & Additional Disclosures Some statements in this presentation may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” and similar expressions. With respect to any such forward-looking statements, Hope Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. With the consummation of the merger of Territorial Bancorp, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Hope Bancorp and Territorial Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; and deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees and customers, may be greater than expected. Other risks and uncertainties include, but are not limited to: possible renewed deterioration in economic conditions in Hope Bancorp’s areas of operation or elsewhere; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying Hope Bancorp’s allowances for credit losses; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp; the impact of U.S. global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and geopolitical instability; and risks from natural disasters. For additional information concerning these and other risk factors, see Hope Bancorp’s most recent Annual Report on Form 10-K. Hope Bancorp does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law. 2
Strong Capital & Liquidity • Total capital ratio was 15.06% at 3/31/25, up 28bps QoQ • Tangible common equity (“TCE”) ratio(1) was 10.20% at 3/31/25, up 15bps QoQ • Strategically compelling acquisition of Hawaii-based Territorial Bancorp (TBNK) completed 4/2/25, adding $1.7B of stable, low-cost deposits and ~$1B of residential mortgage loans with pristine asset quality Deposits • Deposits of $14.5B at 3/31/25, up 1% QoQ • Growth in customer deposits more than offset planned reduction of brokered deposits • Average cost of interest bearing deposits down 24bps QoQ Loans • Loans receivable of $13.3B at 3/31/25, down 2% QoQ • Loan originations improved 11% YoY, offset by elevated levels of paydowns/payoffs • Gross loan-to-deposit ratio of 92.0% at 3/31/25 Asset Quality • Nonperforming assets (“NPA”) of $84MM at 3/31/25 (0.49% of total assets), down 8% QoQ and down 21% YoY • NCO ratio of 0.25% in 1Q25, down from 0.38% in 4Q24 Earnings • 1Q25 net income: $21.1MM, or $0.17 per diluted share • 1Q25 net income excluding notable items(1): $22.9MM, or $0.19(1) per diluted common share • 1Q25 notable items after tax: $1.8MM predominantly consisting of merger-related expenses Q1 2025 Financial Overview Total Capital & TCE Ratio at 3/31/25 15.06% / 10.20% NPA/Total Assets at 3/31/25 0.49% Loans Receivable at 3/31/25 $13.3B Total Deposits at 3/31/25 $14.5B 3 1Q25 Net Income & EPS $21.1MM / $0.17 Excluding notable items $22.9MM / $0.19 (1) TCE ratio, net income excluding notable items and earnings per share (“EPS”) excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix of this presentation.
Strong Capital Ratios 4 Common Equity Tier 1 Capital Ratio • Robust capital ratios: All capital ratios increased QoQ and YoY and were meaningfully above requirements for “well-capitalized” financial institutions • Pro forma capital very strong: Adjustments for the allowance for credit losses (“ACL”) and hypothetical adjustments for investment security marks not otherwise already reflected in equity, still result in very strong capital ratios • Dividend: Quarterly common stock dividend of $0.14 per share, or $0.56 per share annualized. Equivalent to a dividend yield of 5.35% at 3/31/25 • Territorial impact (closed 4/2/25): Fixed exchange ratio: 0.8048x HOPE shares per Territorial Bancorp Inc. (TBNK) share in an all-stock transaction. Company issued 6,976,754 shares, or $73MM of equity • Equity: Book value per common share of $17.84 & TCE per share(1) of $13.99 at 3/31/25, each up 1% QoQ Tangible Common Equity (“TCE”) Ratio(1) Total Capital Ratio Leverage Ratio Well Capitalized Reg. Minimum 6.50% (1) TCE ratio and TCE per share are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix of this presentation. * Pro forma ratios at 3/31/25 are non-GAAP financial measures and reflect (a) inclusion of on- and off-balance sheet ACL not already in capital; (b) treatment of held-to-maturity (“HTM”) securities as if they were available- for-sale (“AFS”), with unrealized losses in accumulated other comprehensive income (“AOCI”); and (c) removal of the AOCI opt-out in calculating regulatory capital. Well Capitalized Reg. Minimum 10.00% Well Capitalized Reg. Minimum 5.00%
Diverse & Granular Deposit Base 5 Noninterest Bearing Demand Deposits 23% Money Market, Interest Bearing Demand & Savings Deposits 37% Time Deposits 40% $14.5B Total Deposits (at 3/31/25) • Brokered deposits at 3/31/25 decreased QoQ to less than 7% of total deposits • Average consumer deposit account size: approx. $46K for 1Q25 Average commercial account size: approx. $220K for 1Q25 • Total deposits of $14.5B at 3/31/25, up 1% QoQ • Growth in customer deposits QoQ more than offset planned reduction in brokered deposits Deposit Composition by Product Type Deposit Composition by Customer Type 50% 49% 51% 50% 51% 38% 39% 39% 40% 40% 10% 9% 7% 7% 7% 2% 3% 3% 3% 2% 1Q24 2Q24 3Q24 4Q24 1Q25 Commercial Consumer Brokered Public & Other
Well-Balanced Loan Portfolio 6 Nonowner- Occupied CRE 34% Owner-Occupied CRE 20% C&I 28% Residential Mortgage & Other 9% Multifamily Residential 9% $13.3B Loans Receivable (at 3/31/25) $1.2B Avg Size: $0.6MM $4.5B Avg Size: $1.8MM $2.7B Avg Size: $2.2MM $3.8B Avg Size: $1.4MM $1.2B Avg Size: $2.4MM • Loan portfolio well-diversified across major loan types of nonowner-occupied CRE, C&I, owner-occupied CRE, multifamily residential, and residential mortgage • Loans receivable, excluding loans held for sale, were $13.3B at 3/31/25, down 2% QoQ • 1Q25 loan production improved 11% YoY • Elevated levels of paydowns/payoffs • 1Q25 QoQ trends: Residential mortgage loans increased 7%, offset by a 5% decrease in C&I loans a 2% decrease in CRE loans • 1Q25 average gross loans decreased 1% QoQ
Diversified CRE Portfolio with Low LTVs Total CRE: Distribution by LTV (excl. SBA) < 50%: 59% > 50% - 55%: 13% > 55% - 60%: 9% > 60% - 65%: 6% > 65% - 70% > 70%: 8%$8.4B CRE Portfolio (at 3/31/25) 46% Weighted Avg LTV(1) (1) Weighted average loan-to-value (“LTV”): Current loan balance divided by updated collateral value. Collateral value updates most recent available appraisal by using CoStar market and property-specific data, including submarket appreciation or depreciation, and changes to vacancy, debt service coverage or rent/sq foot • Total CRE loans of $8.4B at 3/31/25, a decrease of 2% QoQ. Portfolio consists of $4.5B of nonowner-occupied CRE, $2.7B of owner-occupied CRE, and $1.2B of multifamily residential loans • CRE office: represented less than 3% of total loans at 3/31/25 with no central business district exposure 7 $8.4B CRE Portfolio (at 3/31/25) As a % of Total Loans: Avg Loan Size: Weighted Avg LTV(1): 12% Multi-tenant Retail $1,575MM $2.4MM 41.7% 9% Industrial & Warehouse $1,263MM $2.5MM 40.8% 9% Multifamily $1,203MM $2.4MM 60.0% 8% Gas Station & Car Wash $1,084MM $1.9MM 47.6% 6% Hotel/Motel $758MM $2.1MM 40.1% 5% Mixed Use $700MM $1.8MM 47.4% 5% Single-tenant Retail $652MM $1.4MM 45.7% 3% Office $347MM $2.0MM 54.3% 6% All Other $795MM $1.6MM 42.1% 5%
LA Fashion District Gateway Cities San Gabriel Valley South Bay LA Koreatown Other LA County (No exposure to downtown LA commercial business district) Orange County San Bernardino County Riverside County Other SoCalSan Francisco, $46 Greater SF Bay Area Other NorCal Manhattan Queens County Kings County Other New York New Jersey Texas Washington Illinois Other States Granular CRE Portfolio, Diversified by Submarket 8 CRE Portfolio by Geographic Submarket ($ Millions) Loan Size (at 3/31/25) Balance ($ Millions) # of Loans Average Loan Size ($ Millions) Weighted Average LTV(1) > $30MM $ 325 8 $ 40.6 61.4% $20MM - $30MM $ 578 24 $ 24.1 49.5% $10MM - $20MM $ 1,218 89 $ 13.7 51.0% $5MM - $10MM $ 1,675 246 $ 6.8 48.1% $2MM - $5MM $ 2,313 749 $ 3.1 45.5% < $2MM $ 2,268 3,021 $ 0.8 39.8% Total CRE Portfolio $ 8,377 4,137 $ 2.0 46.2% • Loan-to-value ratios are consistently low across segments by size and by property type • Vast majority of CRE loans have full recourse and personal guarantees CRE Portfolio by Size Segment (1) Weighted average LTV: Current loan balance divided by updated collateral value. Collateral value updates most recent available appraisal by using CoStar market and property-specific data, including submarket appreciation or depreciation, and changes to vacancy, debt service coverage or rent/sq foot $8.4B CRE Portfolio (at 3/31/25) SoCal NorCal NY/NJ Texas Washington Illinois Other States $ 2 1 8 $309
Net Interest Income & Net Interest Margin 9 Net Interest Income & Net Interest Margin ($ Millions) $115 $106 $105 $102 $101 2.55% 2.62% 2.55% 2.50% 2.54% 1Q24 2Q24 3Q24 4Q24 1Q25 2.54%2.50% Loan Yield Decline +17bps 1Q25 NIM change: +4bps QoQ Net Interest Income Net Interest Margin (annualized) QoQ Change in Net Interest Margin 4Q24 1Q25 Decrease in Interest Bearing Deposit Cost -6bps All Other Net Changes -3bps Avg Loan Balance Decline • 1Q25 net interest income of $101MM down 1% QoQ. Decrease in interest income (impact of lower interest rates on floating rate loans, lower average loan balances and two fewer days in 1Q25), partially offset by lower interest expense (lower deposit costs) • 1Q25 average cost of interest bearing (“IB”) deposits down 24bps QoQ to 4.14%, down from 4.38% in 4Q24 – Spot rate on IB deposit costs at 3/31/25: 4.09%, down 54bps from 4.63% at 8/31/24 – Cumulative spot beta(1) of 54% on IB deposit costs vs. change in Fed Funds target rate, from 8/31/24 to 3/31/25 • 1Q25 net interest margin (“NIM”) of 2.54% increased 4bps QoQ, primarily driven by the decrease in IB deposit costs -4bps (1) Cumulative spot beta = (change in spot interest bearing deposit cost 8/31/24 to 3/31/25) / (change in Fed Funds targe rate 8/31/24 to 3/31/25)
3.36% 3.39% 3.44% 3.32% 3.18% 4.51% 4.54% 4.59% 4.38% 4.14% 5.50% 5.50% 5.43% 4.82% 4.50% 1Q24 2Q24 3Q24 4Q24 1Q25 Cost of Total Deposits (ann.) Cost of IB Deposits (ann.) Avg Fed Funds Rate Average Loans & Deposits, Yields & Rates 10 Average Deposits Average Loans ($ Billions) ($ Billions) $13.7 $13.6 $13.6 $13.6 $13.5 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 1Q24 2Q24 3Q24 4Q24 1Q25 11.1 10.9 11.0 11.0 11.1 3.8 3.6 3.7 3.6 3.4 1Q24 2Q24 3Q24 4Q24 1Q25 Avg Interest Bearing ("IB") Deposits Avg Non IB Deposits 6.25% 6.20% 6.16% 5.95% 5.88% 5.50% 5.50% 5.43% 4.82% 4.50% 1Q24 2Q24 3Q24 4Q24 1Q25 Avg Loan Yield (annualized) Avg Fed Funds Rate Avg Loan-to-Deposit Ratio 92% 94% 92% 93% 93% Average Cost of Deposits Relative to Fed Funds Rate Average Loan Yield Relative to Fed Funds Rate $14.5$14.9 $14.5$14.6$14.7
2.6 2.7 2.7 2.8 2.9 2.0 2.7 3.1 3.1 5.7 6.4 6.4 9.0 9.7 1.0 1Q24 2Q24 3Q24 4Q24 1Q25 Service Fees on Deposit Accounts Net Gains on SBA Loan Sales Other Income & Fees Net Gain on VA Branch Sale Noninterest Income 11 Noninterest Income ($ Millions) $11.8 $15.9 $15.7 $8.3 $11.1 • 1Q25 noninterest income of $16MM. Excluding the one-time $1MM branch sale gain in 4Q24, 1Q25 noninterest income was up 5% QoQ from $15MM • Sold $50MM of the guaranteed portion of SBA 7(a) loans during 1Q25 vs. $48MM in 4Q24. Recorded a net gain on sale of $3.1MM in each of 1Q25 and 4Q24 • Increase in 1Q25 other income and fees reflects positive momentum across a broad- base of smaller noninterest income lines
68.8% 69.3% 69.7% 65.7% 72.0% 66.8% 67.7% 68.4% 65.8% 69.8% 1Q24 2Q24 3Q24 4Q24 1Q25 Efficiency Ratio (GAAP) Efficiency Ratio (ex. notable items) 47.6 44.1 44.2 42.0 48.5 12.1 12.4 12.3 12.3 12.9 22.7 22.6 23.3 22.7 19.9 1Q24 2Q24 3Q24 4Q24 1Q25 Salary & Employee Benefits Occupancy & FF&E Other Expenses Efficiency Ratio Noninterest Expense & Efficiency 12 $79.8 $77.0 $81.3$82.4 $79.1 Noninterest Expense(1)(2) (excluding notable items) ($ Millions) • 1Q25 GAAP noninterest expense of $84MM. Ex. notable items(3), 1Q25 noninterest expense of $81MM, up 6% QoQ and down 1% YoY. • QoQ change in 1Q25 noninterest expense reflects increase in salaries and benefits expense (normally higher in 1Q due to payroll taxes, bonus expense true-ups and vacation accrual payouts) and decrease in earned interest credit expense (tied to lower avg balances of related deposits and Fed Funds target rate cuts) (1) The noninterest expense chart columns present noninterest expense excluding notable items (2) Noninterest expense excluding notable items and efficiency ratio excluding notable items are non- GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non- GAAP financial measures are provided in the Appendix of this presentation. (3) 1Q25 notable items (pre-tax) included $2.4MM in merger-related expenses and $166K in restructuring-related costs GAAP Noninterest Expense $77.6 $83.9$84.8 $81.0 (2) $81.3
$159 $156 $153 $151 $147 1.16% 1.15% 1.13% 1.11% 1.11% 1Q24 2Q24 3Q24 4Q24 1Q25 ACL ACL Coverage Ratio • Allowance for credit losses (“ACL”) coverage ratio: 1.11% of loans as of 3/31/25, unchanged QoQ • Nonperforming assets (“NPA”) of $84MM, or 0.49% of total assets at 3/31/25, down 8% QoQ and down 21% YoY • Criticized loans of $449MM at 3/31/25, down $1MM QoQ • Net charge offs (“NCO”): $8MM in 1Q25, or 25bps of average loans, annualized. NCOs down 35% QoQ • Provision for credit losses of $5MM, down QoQ reflecting the linked quarter reduction in net charge offs Stable Asset Quality Metrics 13 Provision for Credit Losses & Net Charge Offs Nonperforming Assets RatioAllowance for Credit Losses & Coverage Ratio Criticized Loans Ratio $3 $1 $3 $10 $5$4 $4 $6 $13 $8 0.10% 0.13% 0.17% 0.38% 0.25% 1Q24 2Q24 3Q24 4Q24 1Q25 Provision for Credit Losses NCO NCO Ratio (ann.) 3.07% 3.30% 3.71% 3.30% 3.36% 1Q24 2Q24 3Q24 4Q24 1Q25 Total Criticized Loans as a % of Total Loans ($ Millions) ($ Millions) 0.59% 0.39% 0.60% 0.53% 0.49% 1Q24 2Q24 3Q24 4Q24 1Q25 NPAs/Total Assets
Territorial Merger Highlights ▪ Created the largest U.S. regional bank catering to multicultural customers across the continental United States and Hawaii ▪ Bolstered Combined Company’s core funding base with $1.7B in stable, low-cost deposits ▪ Accelerated diversification of Combined Company’s loan portfolio by almost doubling HOPE’s residential mortgage portfolio with pristine asset quality loans ▪ Enhanced market share growth opportunities by leveraging larger balance sheet, stronger technology platform and broader array of banking products & services Strategically Compelling ▪ Total merger consideration of $73.3MM, or $8.46 per TBNK share(1) ▪ Fixed exchange ratio: 0.8048 HOPE shares per TBNK share in an all-stock transaction ▪ Expected to be immediately accretive to HOPE’s EPS ▪ Strong capital base and ample liquidity to support growth of the Combined Company Financially Attractive ▪ Shared corporate values that preserve and build on Territorial’s 100+ year legacy of providing personalized customer service and supporting local communities ▪ Operating as Territorial Savings, a division of Bank of Hope, ensures continuity for customers and employees ▪ Continued dedication to and investment in local communities in Hawaii Culturally Aligned (1) Based on HOPE closing price of $10.51 as of 4/2/2025 Merger with Honolulu-based Territorial Bancorp Inc. (“Territorial”), the holding company for Territorial Savings, completed on April 2, 2025 ▪ Issued 6,976,754 shares, or $73MM of equity ▪ One-time merger charges in 2Q25 expected to be ~$18MM ▪ Preliminary discount on Territorial portfolio of 17% ($220MM) ▪ Anticipated 2025 accretion income of ~$14MM ▪ $1.7B in deposits at a weighted average cost of 1.96% ▪ $1.06B of loans, after acquisition accounting discounts ▪ $2MM nonperforming assets ▪ $87MM in cash and cash equivalents ▪ Investment securities portfolio sold 4/2/25 at market value of $531MM with no gain or loss ▪ $161MM FHLB borrowings, of which $125MM was paid off early Territorial at Merger Close (preliminary estimates) Merger Impact 14
Update to Management’s Financial Outlook for 2025 vs. 2024 15 2024 ($ Millions) Outlook for 2025 (1) Anticipated Drivers & Comments on Update End-of-Period Loans (including HFS) $ 13,633 High single-digit % growth (unchanged) ▪ Moderate organic growth driven by recent and anticipated hiring; loan growth weighted toward second half of the year ▪ Addition of Territorial loan portfolio, after purchase discount marks Net Interest Income $ 428 High single-digit % growth (lowered from low double-digit % growth) ▪ Updated accretion income expectations, based on accounting adjustments and discount marks as of merger close: ~$14MM of loan accretion income in 2025 ▪ Forward curve assumptions: three Fed Funds target rate cuts of 25bps each in June, September, and December 2025 Noninterest Income $ 47 Mid-20s % growth (raised from mid-teen % growth) ▪ Stronger momentum across broad base of fee income lines ▪ Full year of SBA loan sales in 2025, compared with three quarters in 2024 Noninterest Expense (2) (excluding notable items) $ 318 Low double-digit % growth (unchanged) ▪ Addition of Territorial operating expenses ▪ Disciplined expense management, while continuing to invest in talent and technology to support franchise growth (1) The Financial Outlook for 2025 is presented as of April 22, 2025, reflects the Company’s updated financial outlook for 2025 vs. actual results in 2024, and will not be updated or affirmed unless and until the Company publicly announces such update or affirmation. The Company’s financial outlook for 2025 is dependent on macroeconomic factors, including, but not limited to, the impact of U.S. and global trade policies and tensions, changes to market interest rates, and reflects expectations as of the date of this presentation. The Financial Outlook for 2025 contains forward-looking statements and actual results or conditions may differ materially and adversely from those included in the Financial Outlook for 2025. Please refer to the “forward-looking statements” on Slide 2 of this presentation. (2) Noninterest expense excluding notable items is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix of this presentation.
Appendix 16
Summary Balance Sheet 17 ($ in millions, except per share data) 3/31/25 12/31/24 QoQ % change 3/31/24 YoY % change Cash and due from banks $ 733.5 $ 458.2 60 % $ 1,185.3 (38)% Investment securities 2,088.6 2,075.6 1 % 2,278.0 (8)% Federal Home Loan Bank (“FHLB”) stock and other investments 103.5 57.2 81 % 61.2 69 % Gross loans 13,335.5 13,632.8 (2)% 13,721.9 (3)% Allowance for credit losses (147.4) (150.5) (2)% (158.8) (7)% Goodwill and intangible assets 466.4 466.8 —% 468.0 —% Other assets 488.2 513.9 (5) % 532.6 (8)% Total assets $ 17,068.3 $ 17,054.0 —% $ 18,088.2 (6)% Deposits $ 14,488.3 $ 14,327.5 1 % $ 14,753.4 (2)% Borrowings & other debt 209.9 348.6 (40) % 904.2 (77)% Other liabilities 210.1 243.4 (14)% 318.3 (34)% Total liabilities $ 14,908.3 $ 14,919.5 —% $ 15,975.9 (7)% Total stockholders’ equity $ 2,160.0 $ 2,134.5 1 % $ 2,112.3 2 % Book value per share $17.84 $17.68 1 % $17.51 2 % Tangible common equity (“TCE”) per share(1) $13.99 $13.81 1 % $13.63 3 % Tangible common equity ratio(1) 10.20% 10.05% 9.33% Loan-to-deposit ratio 92.0% 95.2% 93.0% (1) TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix of this presentation.
Summary Income Statement 18 ($ in thousands, except per share and share data) 1Q25 4Q24 QoQ % change 1Q24 YoY % change Net interest income before provision for credit losses $ 100,817 $ 102,135 (1)% $ 115,047 (12)% Provision for credit losses 4,800 10,000 (52)% 2,600 85 % Net interest income after provision for credit losses 96,017 92,135 4 % 112,447 (15)% Noninterest income 15,688 15,881 (1)% 8,286 89 % Noninterest expense 83,861 77,590 8 % 84,839 (1)% Noninterest expense excluding notable items(1) 81,342 77,007 6 % 82,393 (1)% Income before income taxes 27,844 30,426 (8)% 35,894 (22)% Income tax provision 6,748 6,089 11 % 10,030 (33)% Net income $ 21,096 $ 24,337 (13)% $ 25,864 (18)% Net income excluding notable items(1) $ 22,874 $ 24,039 (5)% $ 27,591 (17)% Earnings Per Common Share (“EPS”) - Diluted $0.17 $0.20 $0.21 EPS excluding notable items(1) - Diluted $0.19 $0.20 $0.23 Weighted Average Shares Outstanding - Diluted 121,433,080 121,401,285 121,020,292 (1) Noninterest expense excluding notable items, net income excluding notable items, and diluted EPS excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the Appendix of this presentation.
Appendix: Non-GAAP Financial Measures Reconciliation (cont’d) Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below. 19 ($ in thousands) 1Q25 4Q24 1Q24 Noninterest expense $ 83,861 $ 77,590 $ 84,839 Less: notable items: FDIC special assessment expense — — (1,000) Restructuring-related (costs) reversals (166) 152 (402) Merger-related costs (2,353) (735) (1,044) Noninterest expense excluding notable items $ 81,342 $ 77,007 $ 82,393 Revenue $ 116,505 $ 118,016 $ 123,333 Less: notable items: Net gain on branch sale — (1,006) — Revenue excluding notable items $ 116,505 $ 117,010 $ 123,333 Efficiency ratio excluding notable items 69.82% 65.81% 66.81% Efficiency Ratio Excluding Notable Items ($ in thousands, except per share info) 1Q25 4Q24 1Q24 Net income $ 21,096 $ 24,337 $ 25,864 Notable items: FDIC special assessment expense — — 1,000 Restructuring-related costs, net (including gain on branch sale) 166 (1,158) 402 Merger-related costs 2,353 735 1,044 Total notable items 2,519 (423) 2,446 Less: tax provision 741 (125) 719 Total notable items, net of tax provision 1,778 (298) 1,727 Net income excluding notable items $ 22,874 $ 24,039 $ 27,591 Diluted common shares 121,433,080 121,401,285 121,020,292 EPS excluding notable items $ 0.19 $ 0.20 $ 0.23 Profitability Ratios Excluding Notable Items Tangible Common Equity (TCE) ($ in thousands, except per share info)+ 3/31/25 12/31/24 3/31/24 Total stockholders’ equity $ 2,160,033 $ 2,134,505 $ 2,112,270 Less: Goodwill and core deposit intangible assets, net (466,405) (466,781) (467,984) TCE $ 1,693,628 $ 1,667,724 $ 1,644,286 Total assets $ 17,068,316 $ 17,054,008 $ 18,088,214 Less: Goodwill and core deposit intangible assets, net (466,405) (466,781) (467,984) Tangible assets $ 16,601,911 $ 16,587,227 $ 17,620,230 TCE ratio 10.20% 10.05% 9.33% Common shares outstanding 120,074,988 120,755,658 120,610,029 TCE per share $ 13.99 $ 13.81 $ 13.63
Document
News Release
HOPE BANCORP DECLARES QUARTERLY CASH DIVIDEND OF $0.14 PER SHARE
LOS ANGELES - April 22, 2025 - Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE) today announced that its Board of Directors declared a quarterly cash dividend of $0.14 per common share. The dividend is payable on or about May 16, 2025, to all stockholders of record as of the close of business on May 2, 2025.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the only regional Korean American bank in the United States with $17.07 billion in total assets as of March 31, 2025. With the addition of Territorial Savings, a division of Bank of Hope, effective April 2, 2025, the Company became the largest regional bank catering to multicultural customers across the continental United States and Hawaii. Headquartered in Los Angeles, the Bank provides a full suite of commercial, corporate and consumer loans, deposit and fee-based products and services, including commercial and commercial real estate lending, SBA lending, residential mortgage and other consumer lending; treasury management services, foreign currency exchange solutions, interest rate derivative products, and international trade financing, among others. The Bank operates 46 full-service branches in California, New York, New Jersey, Washington, Texas, Illinois, New York, New Jersey, Alabama and Georgia under the Bank of Hope banner, and 29 branches in Hawaii under the Territorial Savings banner. The Bank also operates SBA loan production offices, commercial loan production offices, and residential mortgage loan production offices throughout the United States, and a representative office in Seoul, South Korea. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to www.bankofhope.com for Bank of Hope and www.tsbhawaii.bank for Territorial Savings, a division of Bank of Hope. By including the foregoing website address links, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.
Contacts:
| Julianna Balicka | Angie Yang |
|---|---|
| EVP & Chief Financial Officer | SVP, Director of Investor Relations |
| 213-235-3235 | 213-251-2219 |
| julianna.balicka@bankofhope.com | angie.yang@bankofhope.com |