10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________ 

FORM 10-K

_______________________________ 

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

Commission File Number 000-50245

 ________________________________________

HOPE BANCORP, INC.

(Exact name of registrant as specified in its charter)

_________________________________________

Delaware	95-4849715
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
3200 Wilshire Boulevard, Suite 1400, Los Angeles, California	90010
(Address of principal executive offices)	(Zip Code)

(213) 639-1700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of class	Name of exchange on which registered
Common Stock, par value $0.001 per share	NASDAQ Global Select Market

Securities registered pursuant to Section 12(g) of the Act: None

_________________________________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

 Yes  x No  o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  o    No  x

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x Yes    o  No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x		Accelerated filer	o
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company	o
			Emerging growth company	o

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.   o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  o    No  x

The aggregate market value of the common stock held by non-affiliates of the registrant based upon the closing sale price of the common stock as of the last business day of the registrant’s most recently completed second fiscal quarter, June 30, 2017, as reported on the NASDAQ Global Select Market, was approximately $2,408,992,339.

Number of shares outstanding of the registrant’s common stock as of February 21, 2018: 135,523,974

Documents Incorporated by Reference: The information required in Part III, Items 10 through 14 are incorporated herein by reference to the registrant’s definitive proxy statement for the 2018 annual meeting of stockholders which will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year end.

Table of Contents

		Page
Forward-Looking Information
PART I
Item 1.	Business	3
	General	3
	Mergers and Acquisitions	3
	Business Overview	4
	Lending Activities	4
	Investing Activities	6
	Deposit Activities	6
	Borrowing Activities	6
	Market Area and Competition	7
	Economic Conditions, Government Policies and Legislation	7
	Supervision and Regulation	7
	Employees	13
Item 1A.	Risk Factors	14
Item 1B.	Unresolved Staff Comments	22
Item 2.	Properties	22
Item 3.	Legal Proceedings	22
Item 4.	Mine Safety Disclosures	22
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	23
Item 6.	Selected Financial Data	25
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	56
Item 8.	Financial Statements and Supplementary Data	58
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	58
Item 9A.	Controls and Procedures	59
Item 9B.	Other Information	62
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	63
Item 11.	Executive Compensation	63
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	63
Item 13.	Certain Relationships and Related Transactions, and Director Independence	63
Item 14.	Principal Accountant Fees and Services	63
PART IV
Item 15.	Exhibits and Financial Statement Schedules	64
Item 16.	Form 10-K Summary	66

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Forward-Looking Information

Certain statements in this Annual Report on Form 10-K constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, and 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,” “may” or similar expressions. With respect to any such forward-looking statements Hope Bancorp, Inc. claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Our 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: deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; and regulatory risks associated with current and future regulations. For a more detailed discussion of factors that might cause such a difference, see Item 1A, “Risk Factors” herein. Hope Bancorp, Inc. 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.

PART I

Item 1.BUSINESS

General

Hope Bancorp, Inc. (“Hope Bancorp” on a parent-only basis, and the “Company,” “we” or “our” on a consolidated basis with the Bank) is a bank holding company headquartered in Los Angeles, California. The Company was incorporated in Delaware in the year 2000. Previously known as BBCN Bancorp Inc., the Company changed its name to Hope Bancorp at the time of the merger with Wilshire Bancorp Inc. (“Wilshire”) on July 29, 2016. We offer commercial and retail banking loan and deposit products through our wholly-owned subsidiary, Bank of Hope (formerly BBCN Bank), a California state-chartered bank (the “Bank” or “Bank of Hope”). Bank of Hope primarily focuses its business in ethnic communities in California, New Jersey and New York City, Chicago, Houston, Dallas, Seattle and Washington, D.C. metropolitan areas. Our headquarters are located at 3200 Wilshire Boulevard, Suite 1400, Los Angeles, California 90010, and our telephone number at that address is (213) 639-1700.

Hope Bancorp exists primarily for the purpose of holding the stock of the Bank and other subsidiaries it may acquire or establish. Bank of Hope’s deposits are insured by the Federal Deposit Insurance Corporation (the “FDIC”), up to applicable limits.

We file reports with the Securities and Exchange Commission (the “SEC”), which include annual reports on Form10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, as well as proxy and information statements in connection with our stockholders meetings. The public may read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC, 20549. The SEC maintains a website that contains the reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. The address of the website is www.sec.gov. Our website address is www.bankofhope.com. Electronic copies of our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and other information and reports we file with the SEC and amendments to those reports, are available free of charge by visiting the Investor Relations section of our website. These reports are generally posted as soon as reasonably practicable after they are electronically filed with the SEC. None of the information on or hyperlinked from the Company’s website is incorporated into this Annual Report on Form 10-K.

Mergers and Acquisitions

On July 29, 2016, we completed the acquisition of Wilshire, previously headquartered in Los Angeles, California. With the completion of the acquisition, 35 branches in California, New York, New Jersey, Texas, Alabama, and Georgia were added to our existing branch network in addition to six loan production offices. Some of these branch locations and loan production offices were subsequently closed as part of our consolidation plan. Our current consolidated network consists of 63 branches and eight loan production offices.

The Wilshire acquisition was accounted for in accordance with Accounting Standard Codification (“ASC”) 805 “Business Combinations,” and the assets and liabilities of Wilshire were recorded at fair value at the date of acquisition. The fair value of assets acquired from Wilshire totaled approximately $4.63 billion and goodwill recorded from acquisitions consummated in 2016 totaled $359.0 million.

On January 23, 2017, we announced the signing of a definitive agreement and plan of merger with U & I Financial Corporation (“U & I”) pursuant to which U & I would have merged with and into Hope Bancorp with Hope Bancorp as the surviving corporation. As part of the merger, UniBank, a wholly-owned subsidiary of U & I, would have merged with and into the Bank. Subsequently

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on September 15, 2017, we announced the termination of the proposed merger with U & I as required regulatory approval had not been obtained. The Mutual Termination Agreement provided, among other things, that each party will bear its own costs and expenses in connection with the terminated transaction, without penalties or termination fees. In connection with the termination, the parties have provided mutual releases to one another relating to the merger transaction.

Business Overview

Our principal business activities are conducted through the Bank and primarily consist of earning interest on loans and investment securities that are funded by customer deposits and other borrowings. Operating revenues consist of the difference between interest received and interest paid, gains and losses on the sale of financial assets, and fees earned for financial services provided to our customers. Interest rates are highly sensitive to many factors that are beyond our control, such as general economic conditions, new legislation and the policies of various governmental and regulatory authorities. Although our business may vary with local and national economic conditions, such variations are not generally seasonal in nature.

Through our current network of 63 branches and eight loan production offices, we offer core business banking products for small and medium-sized businesses and individuals. We accept deposits and originate a variety of loans, including commercial business loans, commercial real estate loans, trade finance loans, Small Business Administration (“SBA”) loans, auto loans, single-family mortgages, warehouse lines of credit, personal loans, and credit cards. We offer cash management services to our business customers, which include remote deposit capture, lock box and ACH origination services. We offer comprehensive investment and wealth management services to high-net-worth clients. We also offer a mobile banking application for smartphones that extends banking services, such as mobile deposits and bill payment, for our customers at all times. In an effort to better meet our customers’ needs, our mini-market branches generally offer hours from 9 a.m. to 6 p.m. Most of our branches offer 24-hour automated teller machines (“ATMs”). We also offer debit card services with a rewards program to all customers. In addition, most of our branches offer foreign exchanges services, safe deposit boxes and other customary bank services. Our website at www.bankofhope.com offers internet banking services and applications in both English and Korean.

Lending Activities

Commercial Business Loans

We provide commercial loans to businesses for various purposes such as for working capital, purchasing inventory, debt refinancing, business acquisitions and other business related financing needs. Commercial loans are typically classified as (1) short-term loans (or lines of credit) or (2) long-term loans (or term loans to businesses). Short-term loans are often used to finance current assets such as inventory and accounts receivable and typically have terms of one year with interest paid monthly on the outstanding balance and the principal balance due at maturity. Long-term loans typically have terms of five to seven years with principal and interest paid monthly. The credit worthiness of our borrowers is determined before a loan is originated and is periodically reviewed to ascertain whether credit quality changes have occurred. Commercial business loans are typically collateralized by the borrower’s business assets and/or real estate.

Our commercial business loan portfolio includes trade finance loans from our Corporate Banking Center, which generally serves businesses involved in international trade activities. These loans are typically collateralized by business assets and are used to meet the short-term working capital needs (accounts receivable and inventory financing) of our borrowers. Our International Operations Department issues and advises on letters of credit for export and import businesses. The underwriting procedure for this type of credit is the same as for commercial business loans. We offer the following types of letters of credit to customers:

• Commercial: An undertaking by the issuing bank to pay for a commercial transaction.

• Standby: An undertaking by the issuing bank to pay for the non-performance of the applicant customer.

• Revocable: Letter of credit that can be modified or cancelled by the issuing bank at any time with notice to the beneficiary (does not provide the beneficiary with a firm promise of payment).

• Irrevocable: Letter of credit that cannot be altered or cancelled without mutual consent of all parties.

• Sight: Letter of credit requiring payment upon presentation of conforming shipping documents.

• Usance: Letter of credit that allows the buyer to delay payment up to a designated number of days after presentation of shipping documents.

• Import: Letter of credit issued to assist customers in purchasing goods from overseas.

• Export: Letter of credit issued to assist customers in selling goods overseas.

• Transferable: Letter of credit that allows the beneficiary to transfer its drawing (payment) rights, in part or full, to another.

• Non-transferable: Letter of credit that does not allow the beneficiary to transfer their right, in part or full, to another.

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Our trade finance services include the issuance and negotiation of letters of credit, as well as the handling of documentary collections. On the export side, we provide advice and negotiation of commercial letters of credit and we transfer and issue back-to-back letters of credit. We also provide importers with trade finance lines of credit, which allow for the issuance of commercial letters of credit and the financing of documents received under such letters of credit, as well as documents received under documentary collections. Exporters are assisted through export lines of credit as well as through immediate financing of clean documents presented under export letters of credit.

We provide commercial equipment lease financing through a relationship with a third-party leasing company. Equipment leasing loans are generally capital leases with maturities up to five years.

We also provide warehouse lines of credit to mortgage loan originators. The lines of credit are used by these originators to fund mortgages which are then pledged to the Bank as collateral until the mortgage loans are sold and the lines of credit are paid down. The typical duration of these lines of credit from the time of funding to pay-down ranges from 10-30 days. Although collateralized by mortgage loans, the structure of warehouse lending agreements results in the commercial and industrial loan treatment for these types of loans.

Commercial Real Estate Loans

Real estate loans are extended for the purchase and refinance of commercial real estate and are generally secured by first deeds of trust. The maturities on the majority of such loans are generally five to seven years with a 25-year principal amortization schedule and a balloon payment due at maturity. We offer both fixed and floating rate commercial real estate loans. It is our general policy to restrict commercial real estate loan amounts to 75% of the appraised value of the property at the date of origination.

We originate loans to finance construction projects including one-to-four family residences, multifamily residences, senior housing, and commercial projects. Residential construction loans are due upon the sale of the completed project and are generally collateralized by first liens on the real estate and have floating interest rates. Construction loans are considered to have higher risks than other loans due to the ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, and the availability of long-term financing. Economic conditions may also impact our ability to recover its investment in construction loans. Adverse economic conditions may negatively impact the real estate market, which could affect the borrowers’ ability to complete and sell the project. Additionally, the fair value of the underlying collateral may fluctuate as market conditions change. As construction loans make up only a small percentage of the total loan portfolio, these loans are not further broken down into classes.

Small Business Administration Loans

We extend loans partially guaranteed by the SBA. We primarily extend SBA loans known as SBA 7(a) loans and SBA 504 loans. SBA 7(a) loans are typically extended for working capital needs, purchase of inventory, purchase of machinery and equipment, debt refinance, business acquisitions, start-up financing or to purchase or construct owner-occupied commercial property. SBA 7(a) loans are typically term loans with maturities up to 10 years for loans not secured by real estate and up to 25 years for real estate secured loans. SBA loans are fully amortizing with monthly payments of principal and interest. SBA 7(a) loans are typically floating rate loans that are secured by business assets and/or real estate. Depending on the loan amount, each loan is typically guaranteed 75% to 85% by the SBA, with a maximum gross loan amount to any one small business borrower of $5.0 million and a maximum SBA guaranteed amount of $3.75 million.

We are generally able to sell the guaranteed portion of the SBA 7(a) loans in the secondary market at a premium, while earning servicing fee income on the sold portion over the remaining life of the loan. In addition to the interest yield earned on the unguaranteed portion of the SBA 7(a) loans that are not sold, we hope to recognize income from gains on sales and from loan servicing on the SBA 7(a) loans that are sold.

SBA 504 loans are typically extended for the purpose of purchasing owner-occupied commercial real estate or long-term capital equipment. SBA 504 loans are typically extended for up to 20 years or the life of the asset being financed. SBA 504 loans are financed as a participation loan between the Bank and the SBA through a Certified Development Company (“CDC”). Generally, the loans are structured to give the Bank a 50% first deed of trust (“TD”), the CDC a 40% second TD, and the remaining 10% is funded by the borrower. Interest rates for first TD Bank loans are subject to normal bank commercial rates and terms, and the second TD CDC loans are fixed for the life of the loans based on certain indices.

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All of our SBA loans are originated through our SBA Loan Departments. The SBA Loan Departments are staffed by loan officers who provide assistance to qualified businesses. The Bank has been designated as an SBA Preferred Lender, which is the highest designation awarded by the SBA. This designation generally facilitates a more efficient marketing and approval process for SBA loans. We have attained SBA Preferred Lender status nationwide.

Consumer Loans

Our consumer loans consist of auto loans, home equity, single-family mortgages, and signature loans, with a majority of our consumer loan portfolio currently consisting of single-family mortgages secured by a first deed of trust on single family residences under a variety of loan products including fixed-rate and adjustable-rate mortgages with either 30-year or 15-year terms. Adjustable rate mortgage loans are also offered with flexible initial and periodic adjustments ranging from five to seven years.

Investing Activities

The main objective of our investment strategy is to provide a source of on-balance sheet liquidity while providing a means to manage our interest rate risk, and to generate an adequate level of interest income without taking undue risks. Subject to various restrictions, our investment policy permits investment in various types of securities, certificates of deposit (“CDs”) and federal funds sold. Our investment portfolio has consisted of government sponsored agency bonds, mortgage-backed securities, collateralized mortgage obligations (“CMOs”), trust preferred securities, corporate securities, municipal securities, and mutual funds. For a detailed breakdown of our investment portfolio, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition – Investment Security Portfolio.”

Our securities are classified for accounting purposes as available for sale. We do not maintain held-to-maturity or trading portfolios. Securities purchased to meet investment-related objectives, such as liquidity management or interest rate risk and which may be sold as necessary to implement management strategies, are designated as available for sale at the time of purchase.

Deposit Activities

We attract both short-term and long-term deposits from the general public by offering a wide range of deposit products and services. Through our branch network, we provide our banking customers with personal and business checking accounts, money market accounts, savings accounts, time deposit accounts, individual retirement accounts, 24-hour ATMs, internet banking and bill-pay, remote deposit capture, lock boxes, and ACH origination services. In addition to our retail deposits, we obtain both secured and unsecured wholesale deposits including public deposits such as State of California Treasurer’s time deposits, brokered money market and time deposits, and deposits gathered from outside of the Bank’s normal market area through deposit listing services.

FDIC-insured deposits are our primary source of funds. As part of our asset-liability management, we analyze our retail and wholesale deposit maturities and interest rates to monitor and manage our cost of funds, to the extent feasible in the context of changing market conditions, as well as to promote stability in our supply of funds. For additional information on deposits, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition – Deposits.”

Borrowing Activities

When we have more funds than required for our reserve requirements or short-term liquidity needs, we may sell federal funds to other financial institutions. Conversely, when we have less funds than required, we may borrow funds from the Federal Home Loan Bank of San Francisco (the “FHLB”), the Federal Reserve Bank of San Francisco (“the Federal Reserve Bank”), or our correspondent banking relationships. In addition, we may borrow from the FHLB on a longer term basis to provide funding for certain loan or investment securities strategies, as well as asset-liability management strategies.

The FHLB functions in a reserve credit capacity for qualifying financial institutions. As a member, we are required to own capital stock in the FHLB and may apply for advances from the FHLB on an unsecured basis or by utilizing qualifying loans and certain securities as collateral. The FHLB offers a full range of borrowing programs on its advances, with terms ranging from one day to thirty years, at competitive market rates. A prepayment penalty is usually imposed for early repayment of these advances. Information concerning FHLB advances and other borrowings is included in Note 8 of “Notes to Consolidated Financial Statements.”

We may also borrow from the Federal Reserve Bank. The maximum amount that we may borrow from the Federal Reserve Bank’s discount window is up to 95% of the outstanding principal balance of the qualifying loans and the fair value of the securities that we pledge.

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Market Area and Competition

We currently have 63 banking offices in areas having high concentrations of Korean Americans, of which 35 are located in the Los Angeles, Orange County, Oakland and Silicon Valley (Santa Clara County) areas of California, 10 are located in the New York City metropolitan area and New Jersey, six are in the Chicago metropolitan area, four are in the Seattle metropolitan area, four are in Texas, two are in Virginia, one is in Alabama, and one is in Georgia. We also have eight loan production offices located in Dallas, Seattle, Atlanta, Denver, Portland, Fremont, Newport Beach, and Laguna Niguel. The banking and financial services industry generally, and in our market areas specifically, is highly competitive. The increasingly competitive environment is a result primarily of strong competition among the banks servicing the Korean-American community, changes in regulation, changes in technology and product delivery systems, and consolidation among financial services companies. In addition, federal legislation may have the effect of further increasing the pace of consolidation within the financial services industry. See “Supervision and Regulation.”

We compete for loans, deposits, and customers with other commercial banks, savings and loan associations, securities and brokerage companies, mortgage companies, insurance companies, marketplace finance platforms, money market funds, credit unions, and other non-bank financial service providers. Many of these competitors are much larger in total assets and capitalization, have greater access to capital markets, are more widely recognized, have broader geographic scope, and offer a broader range of financial services than we do.

Economic Conditions, Government Policies and Legislation

Our profitability, like that of most financial institutions, depends, among other things, on interest rate differentials. In general, the difference between the interest expense on interest bearing liabilities, such as deposits and borrowings, and the interest income on our interest earning assets, such as loans we extend to our customers and securities held in our investment portfolio, as well as the level of noninterest bearing deposits, have a significant impact on our profitability. Interest rates are highly sensitive to many factors that are beyond our control, such as the economy, inflation, unemployment, consumer spending, and political changes and events. The impact that future changes in domestic and foreign economic and political conditions might have on our performance cannot be predicted.

Our business is also influenced by the monetary and fiscal policies of the federal government and the policies of regulatory agencies, particularly the Board of Governors of the Federal Reserve System (the “FRB”). The FRB implements national monetary policies (with objectives such as curbing inflation or preventing recession) through its open-market operations in U.S. government securities, by adjusting the required level of reserves for depository institutions subject to its reserve requirements, and by varying the targeted federal funds and discount rates applicable to borrowings by depository institutions. The actions of the FRB in these areas influence the growth of bank loans, investments, and deposits and also affect interest rates earned on interest earning assets and paid on interest bearing liabilities. The nature and impact on Hope Bancorp, and the Bank, of future changes in monetary and fiscal policies cannot be predicted.

From time to time, legislation and regulations are enacted or adopted which have the effect of increasing the cost of doing business, limiting, or expanding permissible activities, or affecting the competitive balance between banks and other financial services providers. Proposals to change the laws and regulations governing the operations and taxation of banks, bank holding companies, financial holding companies, and other financial institutions and financial services providers are frequently made in the U.S. Congress, in state legislatures, and by various regulatory agencies. These proposals may result in changes in banking statutes and regulations and our operating environment in substantial and unpredictable ways. If enacted, such legislation could increase the cost of doing business, limit permissible activities, or affect the competitive balance among banks, savings associations, credit unions, and other financial institutions. We cannot predict whether any of this potential legislation will be enacted, and if enacted, the effect that it, or any implementing regulations, would have on our financial condition or results of operations. See “Supervision and Regulation.”

Supervision and Regulation

General

The Company is registered with and subject to examination by the FRB as a bank holding company and is also subject to certain provisions of the California Financial Code as applicable to bank holding companies. As a California state-chartered bank whose accounts are insured by the FDIC, the Bank is subject to regulation, supervision and regular examination by the California Department of Business Oversight (the “DBO”) and the FDIC. Such supervision and regulation covers substantially all of the business activities of Hope Bancorp and the Bank, including, among others, capital standards, general investment authority, deposit taking and borrowing authority, mergers, establishment of branch offices, and permitted subsidiary investments and activities. In addition, while the Bank is not a member of the FRB, the Bank is subject to certain regulations of the FRB. The federal and state regulatory systems are intended primarily for the protection of depositors, the FDIC deposit insurance fund (the “DIF”) and the banking system as a whole, rather than for the protection of shareholders or other investors.

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In the exercise of their supervisory and examination authority, the regulatory agencies have recently emphasized corporate governance; capital planning and stress testing; liquidity management; enterprise risk management and other board responsibilities; anti-money laundering compliance; information technology adequacy; cyber security preparedness; vendor management; fair lending; and other consumer compliance obligations.

The following summarize certain laws and regulations that apply to Hope Bancorp and the Bank. These descriptions of statutes and regulations and their possible effects do not purport to be complete descriptions of all of the provisions of those statutes and regulations and their possible effects on us, nor do they purport to identify every statute and regulation that may apply to us.

Legislation and Regulatory Developments

The federal banking agencies continue to implement the remaining requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) as well as promulgating other regulations and guidelines intended to assure the financial strength and safety and soundness of banks and the stability of the U.S. banking system. For example, following the initial effectiveness of new capital rules (the “New Capital Rules”) in 2015, the phase-in of a new “capital conservation buffer” of 2.5% for minimum risk-weighted asset ratios under the New Capital Rules began on January 1, 2016 at 0.625% and increased to 1.25% on January 1, 2017 and 1.875% on January 1, 2018. See “Capital Adequacy” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”

Our assets exceed $10 billion and, as a result, we are subject to additional regulation and supervision applicable to banking organizations with more than $10 billion in assets, such as the following:

• We are required to comply with certain provisions of the FRB’s Enhanced Prudential Standards that impose a variety of requirements regarding risk management and governance. These standards require, for example, that we establish a board-level risk committee.

• We are subject to periodic examination by the Consumer Finance Protection Bureau (“CFPB”) with respect to compliance with federal consumer laws. Although we were previously subject to regulations issued by the CFPB, the Bank’s primary federal regulatory, the FDIC, had responsibility for our consumer compliance exams. See “Consumer Finance Protection Bureau.”

• We have to comply with the annual stress testing requirements mandated by the Dodd-Frank Act.

Capital Adequacy Requirements

Bank holding companies and banks are subject to similar regulatory capital requirements administered by their state and federal supervisory banking agencies. The basic capital rule changes in the New Capital Rules adopted by the federal bank regulatory agencies were fully effective on January 1, 2015, but many elements are being phased in over multiple years. The risk-based capital guidelines for bank holding companies and banks, and additionally for banks, prompt corrective action regulations (see “Prompt Corrective Action Provisions”), require banking organizations to maintain capital ratios that vary based on the perceived degree of risk associated with a banking organization’s operations for both transactions reported on the balance sheet as assets, such as loans, and those recorded as off-balance sheet items, such as commitments, letters of credit, and recourse arrangements. The risk-based capital ratios are determined by classifying assets and certain off-balance sheet financial instruments into weighted categories, with higher levels of capital being required for those categories perceived as representing greater risks, and dividing qualifying capital by total risk-adjusted assets and off-balance sheet items. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting, and other factors. Bank holding companies and banks engaged in significant trading activity may also be subject to the market risk capital guidelines and be required to incorporate additional market and interest rate risk components into their risk-based capital standards. To the extent that the new rules are not fully phased in, the prior capital rules continue to apply.

The New Capital Rules revised the previous risk-based and leverage capital requirements for banking organizations to meet requirements of the Dodd-Frank Act and to implement the international Basel Committee on Banking Supervision Basel III agreements. Many of the requirements in the New Capital Rules and other regulations and rules apply only to larger or internationally active institutions and those with $10 billion of assets. For example, banking organizations with more than $10 billion in assets are subject to the Dodd Frank Act’s requirements for annual stress tests and the Enhanced Prudential Standards, both of which apply to the Company and the Bank now that we have crossed the $10 billion asset threshold. Other requirements will apply, such as Comprehensive Capital Analysis and Review requirements; capital plan and Resolution Plan or living will submissions; an additional countercyclical capital buffer; and a supplementary leverage ratio.

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Under the risk-based capital guidelines in place prior to the effectiveness of the New Capital Rules, which trace back to the 1988 Basel I accord, there were three fundamental capital ratios: a total risk-based capital ratio, a Tier 1 risk-based capital ratio and a Tier 1 leverage ratio. To generally be deemed “well capitalized” for bank regulatory purposes a bank must have a total risk-based capital ratio, a Tier 1 risk-based capital ratio and a Tier 1 leverage ratio of at least ten percent, six percent and five percent, respectively. Under the prior capital rules there was no Tier 1 leverage requirement for a holding company to be deemed well-capitalized.

The following are the New Capital Rules applicable to the Hope Bancorp and the Bank since January 1, 2015:

• an increase in the minimum Tier 1 capital ratio from 4.00% to 6.00% of risk-weighted assets;

• a new category and a required 4.50% of risk-weighted assets ratio is established for “common equity Tier 1” as a subset of Tier 1 capital limited to common equity;

• a minimum non-risk-based leverage ratio is set at 4.00%;

• changes in the permitted composition of Tier 1 capital to exclude trust preferred securities (subject to certain grandfathering exceptions for organizations like Hope Bancorp which were under $15 billion in assets as of December 31, 2009), mortgage servicing rights and certain deferred tax assets and to include unrealized gains and losses on available-for-sale debt and equity securities (unless the organization opts out of including such unrealized gains and losses).

• the risk-weights of certain assets for purposes of calculating the risk-based capital ratios are changed for high volatility commercial real estate acquisition, development and construction loans, certain past due non-residential mortgage loans and certain mortgage-backed and other securities exposures; and

• an additional capital conservation buffer of 2.5% of risk weighted assets above the regulatory minimum capital ratios, which will be phased in until 2019 beginning at 0.625% of risk-weighted assets for 2016 and increasing 0.625% annually (1.25% for 2017), and which must be met to avoid limitations on the ability of the Bank to pay dividends, repurchase shares or pay discretionary bonuses.

Management believes that, as of December 31, 2017, Hope Bancorp and the Bank would meet all requirements under the New Capital Rules applicable to them on a fully phased-in basis if such requirements were currently in effect.

Including the capital conservation buffer of 2.5%, the New Capital Rules would result in the following minimum ratios to be generally considered “well capitalized” for bank regulatory purposes: (i) a Tier 1 capital ratio of 8.5%, (ii) a common equity Tier 1 capital ratio of 7.0%, and (iii) a total capital ratio of 10.5%. At December 31, 2017, the respective capital ratios of Hope Bancorp and the Bank exceeded the minimum percentage requirements to generally be deemed “well-capitalized” for bank regulatory purposes. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

While the New Capital Rules set higher regulatory capital standards for Hope Bancorp and the Bank, bank regulators may also continue their past policies of expecting banks to maintain additional capital beyond the new minimum requirements. The implementation of the New Capital Rules or more stringent requirements to maintain higher levels of capital or to maintain higher levels of liquid assets could adversely impact the Company’s net income and return on equity, restrict the ability to pay dividends or executive bonuses and require the raising of additional capital. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Prompt Corrective Action Provisions

The Federal Deposit Insurance Act (“FDI Act”) requires the federal bank regulatory agencies to take “prompt corrective action” with respect to a depository institution if that institution does not meet certain capital adequacy standards, including requiring the prompt submission of an acceptable capital restoration plan. Depending on the bank’s capital ratios, the agencies’ regulations define five categories in which an insured depository institution will be placed: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. At each successive lower capital category, an insured bank is subject to more restrictions, including restrictions on the bank’s activities, operational practices or the ability to pay dividends or executive bonuses. Based upon its capital levels, a bank that is classified as well-capitalized, adequately capitalized, or undercapitalized may be treated as though it were in the next lower capital category if the appropriate federal banking agency, after notice and opportunity for hearing, determines that an unsafe or unsound condition, or an unsafe or unsound practice, warrants such treatment.

The prompt corrective action standards were also changed to conform with the New Capital Rules. Under the new standards, in order to be generally considered well-capitalized for bank regulatory purposes, the bank will be required to meet the new common equity Tier 1 ratio of 6.5%, an increased Tier 1 ratio of 8% (increased from 6%), an unchanged total capital ratio of 10% and an unchanged leverage ratio of 5%.

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The federal banking agencies also may require banks and bank holding companies subject to enforcement actions to maintain capital ratios in excess of the minimum ratios otherwise generally required to be deemed well capitalized for bank regulatory purposes, in which case institutions may no longer be deemed to be well capitalized and may therefore be subject to certain restrictions such as on taking brokered deposits.

Volcker Rule

In December 2013, the federal bank regulatory agencies adopted final rules that implement a part of the Dodd-Frank Act commonly referred to as the “Volcker Rule.” Under these rules and subject to certain exceptions, banking entities are restricted from engaging in activities that are considered proprietary trading and from sponsoring or investing in certain entities, including hedge or private equity funds that are considered covered funds. These rules became effective on April 1, 2014, although certain provisions were subject to delayed effectiveness until July 2017 under rules promulgated by the FRB. Hope Bancorp and the Bank had no investment positions or relationships at December 31, 2017 that were subject to the final rule. Therefore, while these new rules may require us to conduct certain internal analyses and reporting to ensure continued compliance, they did not require any material changes in our operations or business.

Bank Holding Company Regulation

Bank holding companies and their subsidiaries are subject to significant regulation and restrictions by federal and state laws and regulatory agencies, which may affect the cost of doing business, and may limit permissible activities and expansion or impact the competitive balance between banks and other non-bank financial services providers.

A wide range of requirements and restrictions are contained in both federal and state banking laws, which together with implementing regulatory authority:

• Require periodic reports to, and such additional reports of information as the FRB may require;

• Require bank holding companies to meet or exceed increased levels of capital (See “Capital Adequacy Requirements”);

• Require that bank holding companies serve as a source of financial and managerial strength to subsidiary banks and commit resources as necessary to support each subsidiary bank.

• Limit dividends payable to shareholders and restrict the ability of bank holding companies to obtain dividends or other distributions from their subsidiary banks. Hope Bancorp’s ability to pay dividends on its common stock is subject to legal and regulatory restrictions. Substantially all of Hope Bancorp’s funds to pay dividends or to pay principal and interest on our debt obligations are derived from dividends paid by the Bank;

• Require a bank holding company to terminate an activity or terminate control of or liquidate or divest certain subsidiaries, affiliates or investments if the FRB believes the activity or the control of the subsidiary or affiliate constitutes a significant risk to the financial safety, soundness or stability of any bank subsidiary;

• Require the prior approval of senior executive officer or director changes and prohibit golden parachute payments, including change in control agreements, or new employment agreements with such payment terms, which are contingent upon termination, if an institution has been deemed to be in “troubled condition”;

• Regulate provisions of certain bank holding company debt, including the authority to impose interest ceilings and reserve requirements on such debt and require prior approval to purchase or redeem securities in certain situations;

• Require prior approval for the acquisition of 5% or more of the voting stock of a bank or bank holding company by bank holding companies or other acquisitions and mergers with banks, while considering certain competitive, management, financial, compliance and, other factors in granting these approvals, in addition to similar California or other state banking agency approvals which may also be required; and

• Require prior notice and/or prior approval of the acquisition of control of a bank or bank holding company by a shareholder or individuals acting in concert with ownership or control of 10% of the voting stock being a presumption of control.

Other Restrictions on the Company’s Activities

Subject to prior notice or FRB approval, if and as applicable, bank holding companies may generally engage in, or acquire shares of companies engaged in, activities determined by the FRB to be so closely related to banking or managing or controlling banks as to be a proper incident thereto. Bank holding companies that elect and retain “financial holding company” status pursuant to the Gramm-Leach-Bliley Act of 1999 (“GLBA”) may engage in these nonbanking activities and broader securities, insurance, merchant banking and other activities that are determined to be “financial in nature” or are incidental or complementary to activities that are financial in nature without prior FRB approval. Pursuant to GLBA and the Dodd-Frank Act, in order to elect and retain financial holding company status, a bank holding company and all depository institution subsidiaries of a bank holding company must be considered well capitalized and well managed, and, except in limited circumstances, depository subsidiaries must be in satisfactory compliance with the Community Reinvestment Act (“CRA”), which requires banks to help meet the credit needs of the communities in which they operate. Failure to sustain compliance with these requirements or correct any non-compliance

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within a fixed time period could lead to divestiture of subsidiary banks or require all activities to conform to those permissible for a bank holding company. Hope Bancorp has not elected financial holding company status and neither Hope Bancorp nor the Bank has engaged in any activities determined by the FRB to be financial in nature or incidental or complementary to activities that are financial in nature.

The Company is also a bank holding company within the meaning of Section 3700 of the California Financial Code. Therefore, the Bank and any of its subsidiaries are subject to examination by, and may be required to file reports with, the DBO. DBO approvals are also required for certain mergers and acquisitions.

Securities Exchange Act of 1934

The Company’s common stock is publicly held and listed on the NASDAQ Stock Market (“NASDAQ”), and the Company is subject to the periodic reporting, information, proxy solicitation, insider trading, corporate governance and other requirements and restrictions of the Securities Exchange Act of 1934 and the regulations of the Securities and Exchange Commission (“SEC”) promulgated thereunder as well as listing requirements of NASDAQ.

Sarbanes-Oxley Act

The Company is subject to the accounting oversight and corporate governance requirements of the Sarbanes-Oxley Act of 2002, including, among other things, required executive officer certification of financial information presentations, requirements for board audit committees and their members, and disclosure of controls and procedures and internal control over financial reporting.

Bank Regulation

As a California commercial bank whose deposits are insured by the FDIC, the Bank is subject to regulation, supervision, and regular examination by the DBO and by the FDIC, as the Bank’s primary federal regulator, and must additionally comply with certain applicable regulations of the FRB. Specific federal and state laws and regulations that are applicable to banks regulate, among other things, the scope of their business, their investments, their reserves against deposits, the timing of the availability of deposited funds, their activities relating to dividends, investments, loans, the nature and amount of and collateral for certain loans, servicing and foreclosing on loans, borrowings, capital requirements, certain check-clearing activities, branching, and mergers and acquisitions. California banks are also subject to statutes and regulations including FRB Regulation O and Federal Reserve Act Sections 23A and 23B and Regulation W, which restrict or limit loans or extensions of credit to “insiders”, including officers, directors, and principal shareholders, and loans or extension of credit by banks to affiliates or purchases of assets from affiliates, including parent bank holding companies, except pursuant to certain exceptions and only on terms and conditions at least as favorable to those prevailing for comparable transactions with unaffiliated parties. The Dodd-Frank Act expanded definitions and restrictions on transactions with affiliates and insiders under Sections 23A and 23B and also lending limits for derivative transactions, repurchase agreements and securities lending and borrowing transactions.

Pursuant to the FDI Act and the California Financial Code, California state chartered commercial banks may generally engage in any activity permissible for national banks. Therefore, the Bank may form subsidiaries to engage in the many so-called “closely related to banking” or “nonbanking” activities commonly conducted by national banks in operating subsidiaries or by subsidiaries of bank holding companies. Further, California state chartered banks may conduct certain financial activities permitted under GLBA in a “financial subsidiary” to the same extent as a national bank, provided the bank is and remains well-capitalized, well-managed and in satisfactory compliance with the CRA. The Bank currently conducts no non-banking or financial activities through subsidiaries.

FDIC and DBO Enforcement Authority

The federal and California regulatory structure gives the bank regulatory agencies extensive discretion in connection with their supervisory and enforcement activities and examination policies, including policies with respect to the classification of assets and the establishment of appropriate loan loss reserves for regulatory purposes. The regulatory agencies have adopted guidelines to assist in identifying and addressing potential safety and soundness concerns before an institution’s capital becomes impaired. The guidelines establish operational and managerial standards generally relating to: (1) internal controls, information systems, and internal audit systems; (2) loan documentation; (3) credit underwriting; (4) interest-rate exposure; (5) asset growth and asset quality; and (6) compensation, fees, and benefits. Further, the regulatory agencies have adopted safety and soundness guidelines for asset quality and for evaluating and monitoring earnings to ensure that earnings are sufficient for the maintenance of adequate capital and reserves. If, as a result of an examination, the DBO or the FDIC should determine that the financial condition, capital resources, asset quality, earnings prospects, management, liquidity, or other aspects of the Bank’s operations are unsatisfactory or that the Bank or its management is violating or has violated any law or regulation, the DBO and the FDIC have residual authority to:

• Require affirmative action to correct any conditions resulting from any violation or practice;

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• Direct an increase in capital and the maintenance of higher specific minimum capital ratios, which could preclude the Bank from being deemed well capitalized and restrict its ability to accept certain brokered deposits;

• Restrict the Bank’s growth geographically, by products and services, or by mergers and acquisitions, including precluding bidding in FDIC receiverships for failed banks;

• Enter into or issue informal or formal enforcement actions, including required Board resolutions, Matters Requiring Board Attention (MRBA), memoranda of understanding, written agreements and consent or cease and desist orders or prompt corrective action orders to take corrective action and cease unsafe and unsound practices;

• Require prior approval of senior executive officer or director changes; remove officers and directors and assess civil monetary penalties; and

• Terminate FDIC insurance, revoke the charter and/or take possession of and close and liquidate the Bank or appoint the FDIC as receiver.

Deposit Insurance

The FDIC is an independent federal agency that insures deposits, up to prescribed statutory limits, of federally insured banks and savings institutions, and safeguards the safety and soundness of the depository institutions. The FDIC insures our customer deposits through the DIF up to prescribed limits. The FDIC may terminate a depository institution’s deposit insurance upon a finding that the institution’s financial condition is unsafe or unsound, or that the institution has engaged in unsafe or unsound practices that pose a risk to the DIF or that may prejudice the interest of the bank’s depositors. The termination of the Bank’s deposit insurance would result in the revocation of the Bank’s charter by the DBO.

We are generally unable to control the amount of assessments that we pay for FDIC insurance, which can be affected by the cost of bank failures to the FDIC, among other factors. The Dodd-Frank Act revised the FDIC’s DIF management authority by setting requirements for the Designated Reserve Ratio (the DIF balance divided by estimated insured deposits) and redefining the assessment base which is used to calculate banks’ quarterly assessments. The amount of FDIC assessments paid by each DIF member institution is based on its asset size and its relative risk of default as measured by regulatory capital ratios and other supervisory factors.

In 2016, the FDIC adopted a rule increasing the DIF’s minimum reserve ratio to 1.35% as required by the Dodd Frank Act. As required by the Dodd-Frank Act, the costs of increasing the DIF’s reserve ratio from 1.15% to 1.35% will be borne by depository institutions with total consolidated assets of $10 billion or more, which has an impact on the Bank’s deposit insurance assessments because the Bank now has in excess of $10 billion in assets. Any future increases in FDIC insurance assessments may have a material and adverse effect on our earnings and could have a material adverse effect on the value of, or market for, our common stock.

Dividends

Hope Bancorp’s ability to pay dividends is subject to restrictions set forth in the Delaware General Corporation Law. The Delaware General Corporation Law provides that a Delaware corporation may pay dividends either (i) out of the corporation’s surplus (as defined by Delaware law), or (ii) if there is no surplus, out of the corporation’s net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. It is the FRB’s policy, however, that bank holding companies should generally pay dividends on common stock only out of income available over the past year, and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition. It is also the FRB’s policy that bank holding companies should not maintain dividend levels that undermine their ability to be a source of strength to its banking subsidiaries. The FRB also discourages dividend payment ratios that are at maximum allowable levels unless both asset quality and capital are very strong.

The Bank is a legal entity that is separate and distinct from Hope Bancorp. Hope Bancorp depends on the performance of the Bank for funds that the Bank may pay to Hope Bancorp as dividends for use in Hope Bancorp’s operations and that Hope Bancorp may use to pay dividends to shareholders. The ability of the Bank to pay a cash dividend to Hope Bancorp is subject to provisions of the California Financial Code that limit the amount available for cash dividends to the lesser of a bank’s retained earnings or net income for its last three fiscal years (less any distributions to shareholders made during such period). Where the above test is not met, cash dividends may still be paid, with the prior approval of the DBO, in an amount not exceeding the greatest of (1) retained earnings of the bank; (2) the net income of the bank for its last fiscal year; or (3) the net income of the bank for its current fiscal year. The Bank’s ability to pay cash dividends to Hope Bancorp will also depend upon management’s assessment of future capital requirements, contractual restrictions, and other factors. The New Capital Rules may also restrict dividends by the Bank if the additional capital conservation buffer is not achieved.

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Operations and Consumer Compliance Laws

The Bank must comply with numerous federal and state anti-money laundering and consumer protection statutes and implementing regulations, including, but not limited to, the USA PATRIOT Act of 2001, the Bank Secrecy Act, the Foreign Account Tax Compliance Act, the CRA, the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, the Truth in Lending Act, the Fair Housing Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the National Flood Insurance Act, the California Homeowner Bill of Rights and various federal and state privacy protection laws, including the Telephone Consumer Protection Act, and CAN-SPAM Act. Noncompliance with any of these laws could subject the Bank to compliance enforcement actions as well as lawsuits and could also result in administrative penalties, including, fines and reimbursements. The Bank and Hope Bancorp are also subject to federal and state laws prohibiting unfair or fraudulent business practices, untrue or misleading advertising and unfair competition.

These laws and regulations mandate certain disclosure and reporting requirements and regulate the manner in which financial institutions must deal with customers when taking deposits, making loans, servicing, collecting and foreclosure of loans, and providing other services. Failure to comply with these laws and regulations can subject the Bank to various penalties, including but not limited to enforcement actions, injunctions, fines or criminal penalties, punitive damages to consumers, and the loss of certain contractual rights.

The Bank received a “Satisfactory” rating in the most recent public disclosure of CRA performance evaluation released by the FDIC in 2015, which states that the Bank’s CRA performance under the Lending, Investment, and Service Tests supports the overall rating.

Consumer Finance Protection Bureau

The Dodd-Frank Act created the CFPB as an independent entity within the FRB with broad rulemaking, supervisory and enforcement authority over consumer financial products and services, including deposit products, residential mortgages, home-equity loans and credit cards. The bureau’s functions include investigating consumer complaints, conducting market research, rulemaking, supervising and examining bank consumer transactions, and enforcing rules related to consumer financial products and services. CFPB regulations and guidance apply to all financial institutions and banks with $10 billion or more in assets are subject to examination by the CFPB. Banks with less than $10 billion in assets continue to be examined for compliance by their primary federal banking agency. The Bank is subject to examination by the CFPB.

In 2014, the CFPB adopted revisions to Regulation Z, which implement the Truth in Lending Act, pursuant to the Dodd-Frank Act, and apply to consumer mortgages. The revisions mandate specific underwriting criteria for home loans in order for creditors to make a reasonable, good faith determination of a consumer’s ability to repay and establish certain protections from liability under the requirements for “qualified mortgages” that meet certain specific standards. As required by the Dodd-Frank Act, the CFPB also promulgated TILA-RESPA Integrated Disclosure (”TRID”) rules which became effective in 2015 and require new mortgage disclosures. The Bank believes it has fully implemented the TRID requirements.

Employees

As of December 31, 2017, we had 1,470 full-time equivalent employees compared to 1,372 full-time equivalent employees at December 31, 2016. None of our employees are represented by a union or covered by a collective bargaining agreement. Management believes that its relations with its employees are good.

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Item 1A. RISK FACTORS

In the course of conducting its business operations, we are exposed to a variety of risks, some of which are inherent in the financial services industry and others of which are more specific to its own business. The following discussion addresses the most significant risks that could affect our business, financial condition, liquidity, results of operations, and capital position. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business. If any of these known or unknown risks or uncertainties actually occurs, our business, financial condition and results of operations may be materially and adversely effected. In that event, the market price for our common stock will likely decline.

Risk relating to our business

Economic conditions in the markets in which we operate may adversely affect our loan portfolio and reduce the demand for our services. We focus our business primarily in Korean-American communities in California, the greater New York City, Chicago, Houston and Dallas, and Seattle metropolitan areas, New Jersey, Virginia, Alabama, and Georgia. Adverse economic conditions in our market areas could potentially have a material adverse impact on the quality of our business. A renewed economic slowdown in the markets in which we operate currently and in the future may have any or all of the following consequences, any of which may reduce our net income and adversely affect our financial condition:

• loan delinquencies may increase;

• problem assets and foreclosures may increase;

• the level and duration of deposits may decline;

• demand for our products and services may decline; and

• collateral for loans may decline in value below the principal amount owed by the borrower.

We have a high level of loans secured by real estate collateral. A downturn in the real estate market may seriously impair our loan portfolio. As of December 31, 2017, approximately 77% of our loan portfolio consisted of loans secured by various types of real estate. Following the financial crisis of 2008, there was a general slowdown in the economy and declines in the value of real estate. Although the economy has rebounded and real estate prices have gradually recovered from their earlier low levels, it is possible that there will be renewed deterioration in the real estate market generally and in commercial real estate values in particular. Such developments may result in additional loan charge-offs and provisions for loan losses, which may have a material and adverse effect on our net income and capital levels.

Our commercial loan and commercial real estate loan portfolios expose us to risks that may be greater than the risks related to our other loans. Our loan portfolio includes commercial loans and commercial real estate loans, which are secured by hotels and motels, shopping/retail centers, service station and car wash, industrial and warehouse properties, and other types of commercial properties. Commercial and commercial real estate loans carry more risk as compared to other types of lending, because they typically involve larger loan balances often concentrated with a single borrower or groups of related borrowers.

Accordingly, charge-offs on commercial and commercial real estate loans may be larger on a per loan basis than those incurred with our residential or consumer loan portfolios. In addition, these loans expose a lender to greater credit risk than loans secured by residential real estate. The payment experience on commercial real estate loans that are secured by income producing properties are typically dependent on the successful operation of the related real estate project and thus, may subject us to adverse conditions in the real estate market or to the general economy. The collateral securing these loans typically cannot be liquidated as easily as residential real estate. If we foreclose on these loans, our holding period for the collateral typically is longer than residential properties because there are fewer potential purchasers of the collateral.

Unexpected deterioration in the credit quality of our commercial or commercial real estate loan portfolios would require us to increase our provision for loan losses, which would reduce our profitability and could materially adversely affect our business, financial condition, results of operations and prospects.

In addition, with respect to commercial real estate loans, federal and state banking regulators are examining commercial real estate lending activity with heightened scrutiny and may require banks with higher levels of commercial real estate loans to implement more stringent underwriting, internal controls, risk management policies and portfolio stress testing, as well as possibly higher levels of allowances for losses and capital levels as a result of commercial real estate lending growth and exposures. Because a significant portion of our loan portfolio is comprised of commercial real estate loans, the banking regulators may require us to maintain higher levels of capital than we would otherwise be expected to maintain, which could limit our ability to leverage our capital and have a material adverse effect on our business, financial condition, results of operations and prospects.

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Our allowance for loan losses may not cover actual loan losses. If our actual loan losses exceed the amount we have allocated for estimated probable incurred losses, our business will be adversely affected. We attempt to limit the risk that borrowers will fail to repay loans by carefully underwriting our loans, but losses nevertheless occur in the ordinary course of business operations. We create allowances for estimated loan losses through provisions that are recorded as reductions in income in our accounting records. We base these allowances on estimates of the following:

• historical experience with our loans;

• evaluation of current economic conditions and other factors;

• reviews of the quality, mix and size of the overall loan portfolio;

• reviews of delinquencies; and

• the quality of the collateral underlying our loans.

If our allowance estimates are inadequate, we may incur losses, our financial condition may be materially and adversely affected and we may be required to try and raise additional capital to enhance our capital position. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the adequacy of our allowance. These agencies may require us to establish additional allowances based on their judgment of the information available at the time of their examinations. No assurance can be given that we will not sustain loan losses in excess of present or future levels of the allowance for loan losses or that regulatory agencies will not require us to increase our allowance thereby impacting our profitability.

Changes in interest rates affect our profitability. The interest rate risk inherent in our lending, investing, and deposit taking activities is a significant market risk to us and our business. We derive our income mainly from the difference or “spread” between the interest earned on loans, securities and other interest earning assets, and interest paid on deposits, borrowings and other interest bearing liabilities. In general, the wider the spread, the more net interest income we earn. When market rates of interest change, the interest we receive on our assets and the interest we pay on our liabilities will fluctuate. This can cause decreases in our spread and can greatly affect our income. In addition, interest rate fluctuations can affect how much money we may be able to lend. There can be no assurance that we will be successful in minimizing the potentially adverse effects of changes in interest rates.

If we lose key employees, our business may suffer. There is intense competition for experienced and highly qualified personnel in the Korean-American banking industry and the banking industry more broadly. Our future success depends on the continued employment of existing senior management personnel. If we lose key employees temporarily or permanently, it may hurt our business. We may be particularly hurt if our key employees, including any of our executive officers, became employed by our competitors in the Korean-American banking industry.

Environmental laws may force us to pay for environmental problems. The cost of cleaning up or paying damages and penalties associated with environmental problems may increase our operating expenses. When a borrower defaults on a loan secured by real property, we often purchase the property in foreclosure or accept a deed to the property surrendered by the borrower. We may also take over the management of commercial properties whose owners have defaulted on loans. We also lease premises where our branches and other facilities are located, all where environmental problems may exist. Although we have lending, foreclosure and facilities guidelines that are intended to exclude properties with an unreasonable risk of contamination, hazardous substances may exist on some of the properties that we own, lease, manage or occupy. We may face the risk that environmental laws may force us to clean up the properties at our expense. The cost of cleaning up a property may exceed the value of the property. We may also be liable for pollution generated by a borrower’s operations if we take a role in managing those operations after a default. We may find it difficult or impossible to sell contaminated properties.

We are exposed to the risks of natural disasters. A significant portion of our operations is concentrated in Southern California, which is an earthquake and fire prone region. A major earthquake or fire may result in material loss to us. A significant percentage of our loans are and will be secured by real estate. Many of our borrowers may suffer uninsured property damage, experience interruption of their businesses or lose their jobs after an earthquake or fire. Those borrowers might not be able to repay their loans, and the collateral for such loans may decline significantly in value. Unlike a bank with operations that are more geographically diversified, we are vulnerable to greater losses if an earthquake, fire, flood, mudslide or other natural catastrophe occurs in Southern California.

An increase in nonperforming assets would reduce our income and increase our expenses. If the level of nonperforming assets increases in the future, it may adversely affect our operating results and financial condition. Nonperforming assets are mainly loans on which the borrowers are not making their required payments. Nonperforming assets also include loans that have been restructured to permit the borrower to make payments and real estate that has been acquired through foreclosure or deed in lieu of foreclosure of unpaid loans. To the extent that assets are nonperforming, we have less earning assets generating interest income and an increase in credit related expenses, including provisions for loan losses.

We may experience adverse effects from acquisitions. We have acquired other banking companies and bank offices in the past, and will consider additional acquisitions as opportunities arise. If we do not adequately address the financial and operational

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risks associated with acquisitions of other companies, we may incur material unexpected costs and disruption of our business. Future acquisitions may increase the degree of such risks.

Risks involved in acquisitions of other companies include:

• the risk of failure to adequately evaluate the asset quality of the acquired company;

• difficulty in assimilating the operations, technology and personnel of the acquired company;

• diversion of management’s attention from other important business activities;

• difficulty in maintaining good relations with the loan and deposit customers of the acquired company;

• inability to maintain uniform and effective operating standards, controls, procedures and policies;

• potentially dilutive issuances of equity securities or the incurrence of debt and contingent liabilities; and

• amortization of expenses related to acquired intangible assets that have finite lives.

Liquidity risks may impair our ability to fund operations and jeopardize our financial condition. Liquidity is essential to our business. An inability to raise funds through deposits, borrowings, the sale of loans, and other sources may have a material adverse effect on our liquidity. Our access to funding sources in amounts adequate to finance our activities may be impaired by factors that affect us specifically or the financial services industry in general. Factors that may detrimentally impact our access to liquidity sources include a decrease in the level of our business activity due to a market downturn or adverse regulatory action against us. Our ability to acquire deposits or borrow may also be impaired by factors that are not specific to us, such as a disruption of the financial markets or negative views and expectations about the prospects for the banking industry or the general financial services industry as a whole.

Increases in the level of our problem assets, occurrence of operating losses or a failure to comply with requirements of the agencies which regulate us may result in regulatory actions against us which may materially and adversely affect our business and the market price of our common stock. The DBO, the FDIC, and the FRB each have authority to take actions to require that we comply with applicable regulatory capital requirements, cease engaging in what they perceive to be unsafe or unsound practices or make other changes in our business. Among others, the corrective measures that such regulatory authorities may take include requiring us to enter into informal or formal agreements regarding our operations, the issuance of cease and desist orders to refrain from engaging in unsafe and unsound practices, removal of officers and directors and the assessment of civil monetary penalties. See “Item 1. Business – Supervision and Regulation” for a further description of such regulatory powers.

Changes in accounting standards may affect how we record and report our financial condition and results of operations. Our accounting policies and methods are fundamental to how we record and report our financial condition and results of operations. From time to time, the Financial Accounting Standards Board and SEC change the financial accounting and reporting standards that govern the preparation of our financial statements. These changes and their impacts on us can be hard to predict and may result in unexpected and materially adverse impacts on our reported financial condition and results of operations.

We face a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations. The Bank Secrecy Act, the USA PATRIOT Act of 2001, and other laws and regulations require financial institutions, among other duties, to institute and maintain an effective anti-money laundering program and file suspicious activity and currency transaction reports as appropriate. The federal Financial Crimes Enforcement Network is authorized to impose significant civil money penalties for violations of those requirements and has recently engaged in coordinated enforcement efforts with the individual federal banking regulators, as well as the U.S. Department of Justice, Drug Enforcement Administration, and Internal Revenue Service. We are also subject to increased scrutiny of compliance with the rules enforced by the Office of Foreign Assets Control and compliance with the Foreign Corrupt Practices Act. If our policies, procedures and systems are deemed deficient, we would be subject to liability, including fines and regulatory actions, which may include restrictions on our ability to pay dividends and the necessity to obtain regulatory approvals to proceed with certain aspects of our business plan. Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for us. Any of these results could materially and adversely affect our business, financial condition and results of operations.

The occurrence of fraudulent activity, breaches or failures of our information security controls or cybersecurity-related incidents could have a material adverse effect on our business. As a financial institution, we are susceptible to fraudulent activity, information security breaches and cybersecurity-related incidents that may be committed against us or our clients, which may result in financial losses or increased costs to us or our clients, disclosure or misuse of our information or our client information, misappropriation of assets, privacy breaches against our clients, litigation, or damage to our reputation. Such fraudulent activity may take many forms, including check fraud, electronic fraud, wire fraud, phishing, social engineering, and other dishonest acts. Information security breaches and cybersecurity-related incidents may include fraudulent or unauthorized access to systems used by us or our clients, denial or degradation of service attacks, and malware, or other cyber-

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attacks. In recent periods, there continues to be a rise in electronic fraudulent activity, security breaches, and cyber-attacks within the financial services industry, especially in the commercial banking sector due to cyber criminals targeting commercial bank accounts. Consistent with industry trends, we have also experienced an increase in attempted electronic fraudulent activity, security breaches and cybersecurity-related incidents in recent periods. Moreover, in recent periods, several large corporations, including financial institutions and retail companies, have suffered major data breaches, in some cases exposing not only confidential and proprietary corporate information, but also sensitive financial and other personal information of their customers and employees and subjecting them to potential fraudulent activity. Some of our clients may have been affected by these breaches, which increase their risks of identity theft, credit card fraud and other fraudulent activity that could involve their accounts with us.

Information pertaining to us and our clients is maintained, and transactions are executed, on the networks and systems of us, our clients and certain of our third party partners, such as our online banking or reporting systems. The secure maintenance and transmission of confidential information, as well as execution of transactions over these systems, are essential to protect us and our clients against fraud and security breaches and to maintain our clients’ confidence. Breaches of information security also may occur, and in infrequent cases have occurred, through intentional or unintentional acts by those having access to our systems or our clients’ or counterparties’ confidential information, including employees. In addition, increases in criminal activity, levels and sophistication, advances in computer capabilities, new discoveries, vulnerabilities in third-party technologies (including browsers and operating systems) or other developments could result in a compromise or breach of the technology, processes and controls that we use to prevent fraudulent transactions and to protect data about us, our clients and underlying transactions, as well as the technology used by our clients to access our systems. Although we have developed, and continue to invest in, systems and processes that are designed to detect and prevent security breaches and cyber-attacks and periodically test our security, our inability to anticipate, or failure to adequately mitigate, breaches of security could result in: losses to us or our clients; our loss of business and/or clients; damage to our reputation; the incurrence of additional expenses; disruption to our business; our inability to grow our online services or other businesses; additional regulatory scrutiny or penalties; or our exposure to civil litigation and possible financial liability - any of which could have a material adverse effect on our business, financial condition and results of operations.

More generally, publicized information concerning security and cyber-related problems could inhibit the use or growth of electronic or web-based applications or solutions as a means of conducting commercial transactions. Such publicity may also cause damage to our reputation as a financial institution. As a result, our business, financial condition and results of operations could be adversely affected.

We are subject to operational risks relating to our technology and information systems. The continued efficacy of our technology and information systems, related operational infrastructure and relationships with third party vendors in our ongoing operations is integral to our performance. Failure of any of these resources, including but not limited to operational or systems failures, interruptions of client service operations and ineffectiveness of or interruption in third party data processing or other vendor support, may cause material disruptions in our business, impairment of customer relations and exposure to liability for our customers, as well as action by bank regulatory authorities.

Our business reputation is important and any damage to it may have a material adverse effect on our business. Our reputation is very important for our business, as we rely on our relationships with our current, former, and potential clients and stockholders in the communities we serve. Any damage to our reputation, whether arising from regulatory, supervisory or enforcement actions, matters affecting our financial reporting or compliance with SEC and exchange listing requirements, negative publicity, our conduct of our business or otherwise may have a material adverse effect on our business.

As we expand outside our California markets, we may encounter additional risks that may adversely affect us. Currently, the majority of our offices are located in California, but we also have offices in the New York City, Chicago, Houston, Dallas, and Seattle metropolitan areas, New Jersey, Virginia, Alabama, and Georgia. Over time, we may seek to establish offices to serve Korean-American communities in other parts of the United States as well. In the course of these expansion activities, we may encounter significant risks, including unfamiliarity with the characteristics and business dynamics of new markets, increased marketing and administrative expenses and operational difficulties arising from our efforts to attract business in new markets, manage operations in noncontiguous geographic markets, comply with local laws and regulations and effectively and consistently manage our non-California personnel and business. If we are unable to manage these risks, our operations may be materially and adversely affected.

17

Adverse conditions in South Korea or globally may adversely affect our business. A substantial number of our customers have economic and cultural ties to South Korea and, as a result, we are likely to feel the effects of adverse economic and political conditions there. If economic or political conditions in South Korea deteriorate, we may, among other things, be exposed to economic and transfer risk, and may experience an outflow of deposits by our customers with connections to South Korea. Transfer risk may result when an entity is unable to obtain the foreign exchange needed to meet its obligations or to provide liquidity. This may materially and adversely impact the recoverability of investments in or loans made to such entities. Adverse economic conditions in South Korea may also negatively impact asset values and the profitability and liquidity of our customers who operate in this region. In addition, a general overall decline in global economic conditions may materially and adversely affect our profitability and overall results of operations.

Our use of appraisals in deciding whether to make loans secured by real property does not ensure that the value of the real property collateral will be sufficient to repay our loans. In considering whether to make a loan secured by real property, we require an appraisal of the property. However, an appraisal is only an estimate of the value of the property at the time the appraisal is made and requires the exercise of a considerable degree of judgment. If the appraisal does not accurately reflect the amount that may be obtained upon sale or foreclosure of the property, whether due to a decline in property value after the date of the original appraisal or defective preparation of the appraisal, we may not realize an amount equal to the indebtedness secured by the property and as a result, we may suffer losses.

Governmental regulation and regulatory actions against us may further impair our operations or restrict our growth. We are subject to significant governmental supervision and regulation. These regulations affect our lending practices, capital structure, investment practices, dividend policy and growth, among other things. Congress and federal regulatory agencies continually review banking laws, regulations and policies for possible changes. Statutes and regulations affecting our business may be changed at any time and the interpretation of these statutes and regulations by examining authorities may also change. In addition, regulations may be adopted which increase our deposit insurance premiums and enact special assessments which could increase expenses associated with running our business and adversely affect our earnings.

There can be no assurance that such statutes and regulations, any changes thereto or to their interpretation will not adversely affect our business. In particular, these statutes and regulations, and any changes thereto, could subject us to additional costs (including legal and compliance costs), limit the types of financial services and products we may offer and/or increase the ability of non-banks to offer competing financial services and products, among other things. In addition to governmental supervision and regulation, we are subject to changes in other federal and state laws, including changes in tax laws, which could materially affect us and the banking industry generally. We are subject to the rules and regulations of the FRB, the FDIC and the DBO, and examination by the CFPB. In addition, we are subject to the rules and regulation of the Nasdaq Stock Market and the SEC and are subject to enforcement actions and other punitive actions by these agencies. If we fail to comply with federal and state regulations, the regulators may limit our activities or growth, impose fines on us or in the case of our bank regulators, ultimately require our bank to cease its operations. Bank regulations can hinder our ability to compete with financial services companies that are not regulated in the same manner or are less regulated. Federal and state bank regulatory agencies regulate many aspects of our operations. These areas include:

• the capital that must be maintained;

• the kinds of activities that can be engaged in;

• the kinds and amounts of investments that can be made;

• the locations of offices;

• insurance of deposits and the premiums that we must pay for this insurance;

• procedures and policies we must adopt;

• conditions and restrictions on our executive compensation; and

• how much cash we must set aside as reserves for deposits.

In addition, bank regulatory authorities have the authority to bring enforcement actions against banks and bank holding companies, including the Bank and Hope Bancorp, for unsafe or unsound practices in the conduct of their businesses or for violations of any law, rule or regulation, any condition imposed in writing by the appropriate bank regulatory agency or any written agreement with the authority. Enforcement actions against us could include a federal conservatorship or receivership for the bank, the issuance of additional orders that could be judicially enforced, the imposition of civil monetary penalties, the issuance of directives to enter into a strategic transaction, whether by merger or otherwise, with a third party, the termination of insurance of deposits, the issuance of removal and prohibition orders against institution-affiliated parties, and the enforcement of such actions through injunctions or restraining orders. In addition, as we have grown beyond $10 billion in assets, we are subject to enhanced CFPB examination as well as required to perform more comprehensive stress-testing on our business and operations.

18

SBA lending is an important part of our business. Our SBA lending program is dependent upon the federal government, and we face specific risks associated with originating SBA loans. Our SBA lending program is dependent upon the federal government. As an SBA Preferred Lender, we enable our clients to obtain SBA loans without being subject to the potentially lengthy SBA approval process necessary for lenders that are not SBA Preferred Lenders. The SBA periodically reviews the lending operations of participating lenders to assess, among other things, whether the lender exhibits prudent risk management. When weaknesses are identified, the SBA may request corrective actions or impose enforcement actions, including revocation of the lender’s Preferred Lender status. If we lose our status as a Preferred Lender, we may lose some or all of our customers to lenders who are SBA Preferred Lenders, and as a result we could experience a material adverse effect to our financial results. Any changes to the SBA program, including changes to the level of guarantee provided by the federal government on SBA loans, may also have a material adverse effect on our business.

We generally sell the guaranteed portion of our SBA 7(a) loans in the secondary market. These sales have resulted in both premium income for us at the time of sale, and created a stream of future servicing income. We may not be able to continue originating these loans or selling them in the secondary market. Furthermore, even if we are able to continue originating and selling SBA 7(a) loans in the secondary market, we might not continue to realize premiums upon the sale of the guaranteed portion of these loans. When we sell the guaranteed portion of our SBA 7(a) loans, we incur credit risk on the non-guaranteed portion of the loans, and if a customer defaults on the non-guaranteed portion of a loan, we share any loss and recovery related to the loan pro-rata with the SBA. If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced by us, the SBA may seek recovery of the principal loss related to the deficiency from us, which could materially adversely affect our business, financial condition, results of operations and prospects.

The laws, regulations and standard operating procedures that are applicable to SBA loan products may change in the future. We cannot predict the effects of these changes on our business and profitability. Because government regulation greatly affects the business and financial results of all commercial banks and bank holding companies and especially our organization, changes in the laws, regulations and procedures applicable to SBA loans could adversely affect our ability to operate profitably.

Our stock price may be volatile, which may result in substantial losses for our stockholders. The market price of our common stock may be subject to fluctuations in response to a number of factors, including:

• issuing new equity securities;

• the amount of our common stock outstanding and the trading volume of our stock;

• actual or anticipated changes in our future financial performance;

• changes in financial performance estimates by us or by securities analysts;

• competitive developments, including announcements by us or our competitors of new products or services or acquisitions, strategic partnerships, joint ventures or capital commitments;

• the operating and stock performance of our competitors;

• changes in interest rates;

• changes in key personnel;

• changes in economic conditions that affect the Bank’s performance; and

• changes in legislation or regulations that affect the Bank.

We may raise additional capital, which could have a dilutive effect on the existing holders of our common stock and adversely affect the market price of our common stock. We periodically evaluate opportunities to access capital markets, taking into account our financial condition, regulatory capital ratios, business strategies, anticipated asset growth and other relevant considerations. It is possible that future acquisitions, organic growth or changes in regulatory capital requirements could require us to increase the amount or change the composition of our current capital, including our common equity. For all of these reasons and others, and always subject to market conditions, we may issue additional shares of common stock or other capital securities in public or private transactions.

The issuance of additional common stock or securities convertible into or exchangeable for our common stock or that represent the right to receive common stock, or the exercise of such securities, could be substantially dilutive to holders of our common stock. Holders of our common stock have no preemptive or other rights that would entitle them to purchase their pro rata share of any offering of shares of any class or series and, therefore, such sales or offerings could result in dilution of the ownership interests of our stockholders.

Our ability to declare and pay dividends in the future, as well as the ability of the Bank to make dividend payments to us, will be subject to regulatory, statutory and other restrictions. There can be no assurance that we will continue payment of regular cash dividends. Our ability to pay dividends at that time will be subject to statutory and other limitations applicable to us or to the Bank.

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Our results of operations or financial condition could be adversely affected as a result of future impairment of our intangible assets. Future acquisitions could result in increases in the amount of our goodwill or other intangible assets. We assess the carrying value of intangible assets, including goodwill, at least annually in order to determine whether such assets are impaired. We make a qualitative assessment of whether it is more likely than not that the fair value of goodwill or other intangible assets is less than its carrying amount.

If we fail to maintain an effective system of internal controls and disclosure controls and procedures, we may not be able to accurately report our financial results or prevent fraud. Effective internal control over financial reporting and disclosure controls and procedures are necessary for us to provide reliable financial reports, effectively prevent fraud and to operate successfully as a public company. If we cannot provide reliable financial reports or prevent fraud, our reputation and business would be harmed. In addition, failure in our internal control over financial reporting and disclosure controls and procedures could cause us to fail to meet the continued listing requirements of the Nasdaq Global Select Market and, as a result, adversely impact the liquidity and trading price of our securities.

Anti-takeover provisions in our charter documents and applicable federal and state law may limit the ability of another party to acquire us, which could cause our stock price to decline. Various provisions of our charter documents could delay or prevent a third-party from acquiring us, even if doing so might be beneficial to our shareholders. These include, among other things, advance notice requirements to submit stockholder proposals at stockholder meetings and the authorization to issue “blank check” preferred stock by action of the Board of Directors acting alone, thus without obtaining stockholder approval. In addition, applicable provisions of federal and state law require regulatory approval in connection with certain acquisitions of our common stock and supermajority voting provisions in connection with certain transactions. In particular, both federal and state law limit the acquisition of ownership of, generally, 10% or more of our common stock without providing prior notice to the regulatory agencies and obtaining prior regulatory approval or non-objection or being able to rely on an exemption from such requirement. Collectively, these provisions of our charter documents and applicable federal and state law may prevent a merger or acquisition that would be attractive to stockholders and could limit the price investors would be willing to pay in the future for our common stock.

Our common stock is equity and therefore is subordinate to our subsidiaries’ indebtedness and preferred stock. Our common stock constitutes equity interests and does not constitute indebtedness. As such, common stock will rank junior to all current and future indebtedness and other non-equity claims on us with respect to assets available to satisfy claims against us, including in the event of our liquidation. We may, and the bank and our other subsidiaries may also, incur additional indebtedness from time to time and may increase our aggregate level of outstanding indebtedness. Additionally, holders of common stock are subject to the prior dividend and liquidation rights of any holders of our preferred stock that may be outstanding from time to time. The Board of Directors is authorized to cause us to issue additional classes or series of preferred stock without any action on the part of our stockholders. If we issue preferred shares in the future that have a preference over our common stock with respect to the payment of dividends or upon liquidation, or if we issue preferred shares with voting rights that dilute the voting power of the common stock, then the rights of holders of our common stock or the market price of our common stock could be materially adversely affected.

Our common stock is not insured and you could lose the value of your entire investment. An investment in our common stock is not a deposit and is not insured against loss by any government agency.

We may fail to realize cost savings from the Wilshire merger. Although we expect to realize cost savings from the merger when fully phased in, it is possible that these potential cost savings may not be realized fully or realized at all, or may take longer to realize than expected. For example, future business developments may require us to continue to operate or maintain some facilities or support functions that are currently expected to be combined or reduced. Cost savings also depend on our ability to combine the businesses of the Company and Wilshire in a manner that permits those costs savings to be realized. If we are not able to combine the two companies successfully, these anticipated cost savings may not be fully realized or realized at all, or may take longer to realize than expected, which could have a material adverse effect on our financial condition, results of operation and stock price.

Impairment of goodwill resulting prior mergers and acquisitions may adversely affect our results of operations. Goodwill of approximately $464.5 million and core deposits intangibles of $16.5 million were recorded as a result of prior mergers and acquisitions. Potential impairment of goodwill and amortization of other intangible assets could adversely affect our financial condition, results of operations and stock price. We assess our goodwill and other intangible assets and long-lived assets for impairment annually and more frequently when required by generally accepted accounting principles. We are required to record an impairment charge if circumstances indicate that the asset carrying values exceed their fair values. Our assessment of goodwill, other intangible assets, or long-lived assets could indicate that an impairment of the carrying value of such assets may have occurred that could result in a material, non-cash write-down of such assets, which could have a material adverse effect on our results of operations and future earnings.

20

Implementation of the various provisions of the Dodd-Frank Act-in particular provisions that are applicable to banks and bank holding companies with $10 billion or more in assets-may delay the receipt of regulatory approvals and increase our operating costs or otherwise have a material effect on our financial condition, results of operations and stock price. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) enacted in 2010 significantly changes the bank regulatory structure and affects the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies. The Dodd-Frank Act requires various federal agencies to adopt a broad range of new implementing rules and regulations and to prepare numerous studies and reports for Congress. The federal agencies are given significant discretion in drafting the implementing rules and regulations, and the rule-making process is still underway.

Several requirements in the Dodd-Frank Act for new banking regulations are applicable to certain banks and bank holding companies with $10 billion or more in assets. As a result of the merger, we surpassed this threshold, and these provisions, subject to a phase in period, will significantly increase compliance and operating costs and otherwise may have a significant impact on our business, financial condition, results of operations and stock price. Such provisions include the following:

• The Dodd-Frank Act created the Consumer Financial Protection Bureau (“CFPB”), which has broad powers to supervise and enforce consumer protection laws. The CFPB has broad rule-making authority for a wide range of consumer protection laws that apply to all banks, including the authority to prohibit “unfair, deceptive or abusive” acts and practices. The CFPB has examination and enforcement authority over all banks with more than $10 billion in assets, and accordingly has assumed examination and enforcement authority over us post-merger.

• The Dodd-Frank Act increased the authority of the FRB to examine us and our non-bank subsidiaries and gave the FRB the authority to establish rules regarding interchange fees charged for an electronic debit transaction by a payment card issuer that, together with its affiliates, has assets of $10 billion or more, and to enforce a new statutory requirement that such fees be reasonable and proportional to the actual cost of a transaction to the issuer (the “Durbin Amendment”). By regulation, the FRB has limited the fees for such a transaction to the sum of 21 cents plus five basis points times the value of the transaction, plus up to one cent for fraud prevention costs. The effect of the Durbin Amendment has significantly lowered our interchange or “swipe” revenue, but such lower fees are not expected to have a material adverse effect on our results of operations.

• The Dodd-Frank Act established 1.35% as the minimum Designated Reserve Ratio (“DRR”). The FDIC has determined that the DRR should be 2.0% and has adopted a plan under which it will meet the statutory minimum DRR of 1.35% by the statutory deadline of September 30, 2020. The Dodd-Frank Act requires the FDIC to offset the effect of the increase in the statutory minimum DRR to 1.35% from the former statutory minimum of 1.15% on institutions with assets less than $10 billion. As a result of the merger, we are no longer entitled to benefit from the offset.

• The Dodd-Frank Act requires a publicly traded bank holding company with $10 billion or more in assets to establish and maintain a risk committee responsible for enterprise-wide risk management practices, comprised of an independent chairman and at least one risk management expert. The risk committee must approve and periodically review the risk-management policies of the bank holding company’s global operations and oversee the operations of its risk-management framework. The bank holding company’s risk-management framework must be commensurate with its structure, risk profile, complexity, activities and size. These requirements will first apply to us commencing on October 1, 2018, and we will need to build the necessary infrastructure to comply with these enhanced risk management requirements well before the effective date.

• A bank holding company with more than $10 billion in assets is required under the Dodd-Frank Act to conduct annual stress tests using various scenarios established by the FRB, including a baseline, adverse and severely adverse economic conditions (known as “Dodd-Frank Act Stress Tests” or “DFAST”). The stress tests are designed to determine whether our capital planning, assessment of our capital adequacy and risk management practices, adequately protect it and its affiliates in the event of an economic downturn. We must establish adequate internal controls, documentation, policies and procedures to ensure the annual stress test adequately meets these objectives. Our Board of Directors are required to review our policies and procedures at least annually. We are also required to report the results of its annual stress tests to the FRB, and to consider the results of the stress tests as part of its capital planning and risk management practices. We will be subject to the DFAST regime commencing on January 1, 2018, but well in advance of that date, we have undertaken the planning and other actions that we deem reasonably necessary to achieve timely compliance.

It is difficult to predict the overall compliance cost of these provisions, which became effective (with phase-in periods) when the merger was consummated. Compliance with these provisions will require additional staffing, engagement of external consultants and other operating costs that could have a material adverse effect on our future financial condition, results of operations and stock price.

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Item 1B. UNRESOLVED STAFF COMMENTS

None.

Item 2. PROPERTIES

Our principal executive offices are located at 3200 Wilshire Blvd., Suite 1400, Los Angeles, California 90010. As of December 31, 2017, we operated full-service branches at 56 leased and seven owned facilities, and we operated loan production offices at eight leased facilities. Expiration dates of our leases range from 2018 to 2030. We believe our present facilities are adequate for our current operating needs.

Item 3. LEGAL PROCEEDINGS

In the normal course of business, we are involved in various legal claims. We have reviewed all legal claims against us with counsel and have taken into consideration the views of such counsel as to the potential outcome of the claims. Accrued loss contingencies for all legal claims totaled approximately $414 thousand at December 31, 2017. It is reasonably possible we may incur losses in addition to the amounts we have accrued. However, at this time, we are unable to estimate the range of additional losses that are reasonably possible because of a number of factors, including the fact that certain of these litigation matters are still in their early stages and involve claims for which, at this point, we believe have little to no merit. Management has considered these and other possible loss contingencies and does not expect the amounts to be material to any of the consolidated financial statements.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

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Part II

Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is traded on the NASDAQ Global Select Market under the symbol “HOPE.”

The following table sets forth, the quarterly range of high and low closing prices and quarterly dividend paid on our common stock for the past two fiscal years:

	Closing Sale Price				Dividends Paid
Quarters ended:	High		Low
December 31, 2017	$	19.22	$	17.03	$	0.13
September 30, 2017	$	19.17	$	15.21	$	0.13
June 30, 2017	$	19.63	$	17.41	$	0.12
March 31, 2017	$	22.69	$	18.57	$	0.12
December 31, 2016	$	22.41	$	15.45	$	0.12
September 30, 2016	$	17.45	$	14.41	$	0.11
June 30, 2016	$	16.36	$	14.09	$	0.11
March 31, 2016	$	16.80	$	13.79	$	0.11

The closing price for our common stock on the NASDAQ Global Select Market on February 21, 2018 was $18.74 per share.As of February 21, 2018, there were 1,188 stockholders of record of our common stock.

Our ability to pay dividends is subject to restrictions set forth in the Delaware General Corporation Law. The Delaware General Corporation Law provides that a Delaware corporation may pay dividends either (i) out of the corporation’s surplus (as defined by Delaware law), or (ii) if there is no surplus, out of the corporation’s net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. In addition, the payment of dividends by us is subject to review and possible limitation by the FRB under its authority as regulator of bank holding companies, including any limitations which may be imposed as a condition in connection with any regulatory approvals we may apply for. In general, the FRB discourages the payment of dividends on common stock in amounts exceeding a holding company’s net income available to common stockholders for the four quarters preceding a dividend payment. If we defer interest on the subordinated debentures issued in connection with our trust preferred securities, Hope Bancorp would also be prohibited from paying any dividends on common stock or preferred stock until Hope Bancorp is current on its interest payments.

Our ability to pay cash dividends in the future will depend in large part on the ability of the Bank to pay dividends on its capital stock to us. The ability of the Bank to declare a cash dividend to us is subject to compliance with its minimum capital requirements and, additional limitations under California law and regulations.

The applicable statutory and regulatory limitations on the declaration and payment of dividends are further described in “Item 1. Business – Supervision and Regulation – Dividends.”

We did not repurchase any of our shares of common stock during the year ended December 31, 2017. We currently do not have a common stock repurchase program in place.

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Stock Performance Graph

The following graph compares the yearly percentage change in the cumulative total shareholder return (stock price appreciation plus reinvested dividends) on our common stock with (i) the cumulative total return of the NASDAQ Composite Index, (ii) the cumulative total return of the S&P Small Cap 600 Index, (iii) a published index comprised of banks and thrifts selected by SNL Financial LLC, and (iv) the cumulative total return of the S&P 500 Index. The graph assumes an initial investment of $100 and reinvestment of dividends. Points on the graph represent the performance as of the last business day of each of the years indicated. The graph is not indicative of future price performance.

The following graph does not constitute soliciting material and shall not be deemed filed or incorporated by reference into any filing by Hope Bancorp under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that we may specifically incorporate this graph by reference.

COMPARATIVE CUMULATIVE TOTAL RETURN

AMONG HOPE BANCORP, NASDAQ MARKET INDEX, S&P SMALL CAP 600 INDEX,

SNL BANK & THRIFT INDEX AND, S&P 500 INDEX

ASSUMES $100 INVESTED ON DECEMBER 31, 2012

ASSUMES DIVIDENDS REINVESTED

FISCAL YEAR ENDING DECEMBER 31, 2017

	Period Ending
Stock/Index	12/31/2012	12/31/2013	12/31/2014	12/31/2015	12/31/2016	12/31/2017
Hope Bancorp, Inc.	$100.00	$146.02	$129.62	$159.60	$208.86	$178.79
NASDAQ Composite	$100.00	$140.12	$160.78	$171.97	$187.22	$242.71
S&P 600 Index	$100.00	$141.31	$149.45	$146.50	$185.40	$209.94
SNL Bank and Thrift	$100.00	$136.92	$152.85	$155.94	$196.86	$231.49
S&P 500 Index	$100.00	$132.39	$150.51	$152.59	$170.84	$208.14

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Item 6. SELECTED FINANCIAL DATA

The following table presents selected financial and other data for each of the years in the five-year period ended December 31, 2017. The information below should be read in conjunction with, the more detailed information included elsewhere herein, including our Audited Consolidated Financial Statements and Notes thereto.

	As of or For The Year Ended December 31,
	2017		2016		2015		2014		2013
	(Dollars in thousands, except share and per share data)
Income Statement Data:
Interest income	$	572,104	$	421,934	$	313,660	$	302,657	$	283,073
Interest expense	90,724		58,579		40,618		36,060		30,018
Net interest income	481,380		363,355		273,042		266,597		253,055
Provision for loan losses	17,360		9,000		8,000		12,638		20,000
Net interest income after provision for loan losses	464,020		354,355		265,042		253,959		233,055
Noninterest income	66,415		51,819		43,691		44,187		42,719
Noninterest expense	266,601		214,975		153,384		151,624		141,620
Income before income tax provision	263,834		191,199		155,349		146,522		134,154
Income tax provision	124,389		77,452		63,091		57,907		52,399
Net income	$	139,445	$	113,747	$	92,258	$	88,615	$	81,755
Per Common Share Data:
Earnings - basic	$	1.03	$	1.10	$	1.16	$	1.11	$	1.03
Earnings - diluted	$	1.03	$	1.10	$	1.16	$	1.11	$	1.03
Book value (period end)	$	14.23	$	13.72	$	11.79	$	11.10	$	10.18
Cash dividends declared per common share	$	0.50	$	0.45	$	0.42	$	0.35	$	0.25
Number of common shares outstanding (period end)	135,511,891		135,240,079		79,566,356		79,503,552		79,441,525
Balance Sheet Data—At Period End:
Assets	$	14,206,717	$	13,441,422	$	7,912,648	$	7,140,330	$	6,475,199
Securities available for sale	$	1,720,257	$	1,556,740	$	1,010,556	$	792,523	$	701,751
Loans receivable, net of unearned loan fees and discounts (excludes loans held for sale)	$	11,102,575	$	10,543,332	$	6,248,341	$	5,565,192	$	5,074,175
Deposits	$	10,846,609	$	10,642,035	$	6,340,976	$	5,693,452	$	5,148,057
FHLB advances and federal funds purchased	$	1,227,593	$	754,290	$	530,591	$	480,975	$	421,352
Subordinated debentures	$	100,853	$	99,808	$	42,327	$	42,158	$	57,410
Stockholders’ equity	$	1,928,255	$	1,855,473	$	938,095	$	882,773	$	809,374
Average Balance Sheet Data:
Assets	$	13,648,963	$	10,342,063	$	7,389,530	$	6,830,244	$	6,042,674
Securities available for sale	$	1,679,468	$	1,276,068	$	871,010	$	713,775	$	699,812
Gross loans, including loans held for sale	$	10,642,349	$	8,121,897	$	5,846,658	$	5,355,243	$	4,692,089
Deposits	$	10,751,886	$	8,232,984	$	5,879,704	$	5,439,920	$	4,739,261
Stockholders’ equity	$	1,907,746	$	1,342,954	$	912,609	$	848,443	$	788,570

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	As of or For The Year Ended December 31,
	2017		2016		2015		2014		2013
	(Dollars in thousands)
Selected Performance Ratios:
Return on average assets(1)	1.02	%	1.10	%	1.25	%	1.30	%	1.35	%
Return on average stockholders’ equity(2)	7.31	%	8.47	%	10.11	%	10.44	%	10.37	%
Average stockholders’ equity to average assets	13.98	%	12.99	%	12.35	%	12.42	%	13.05	%
Dividend payout ratio (dividends per share/earnings per share)	48.54	%	40.86	%	36.21	%	31.53	%	24.27	%
Net interest spread(3)	3.46	%	3.49	%	3.62	%	3.88	%	4.23	%
Net interest margin(4)	3.80	%	3.75	%	3.88	%	4.13	%	4.46	%
Yield on interest earning assets(5)	4.51	%	4.36	%	4.46	%	4.68	%	4.99	%
Cost of interest bearing liabilities(6)	1.05	%	0.87	%	0.84	%	0.80	%	0.76	%
Efficiency ratio(7)	48.67	%	51.78	%	48.43	%	48.79	%	47.88	%

Regulatory Capital Ratios:
Hope Bancorp:
Common Equity Tier 1	12.30		%	12.10		%	12.08		%	12.96		%	12.65		%
Tier 1 Leverage	11.54		%	11.49		%	11.53		%	11.62		%	11.97		%
Tier 1 risk-based	13.11		%	12.92		%	12.67		%	13.64		%	13.66		%
Total risk-based	13.82		%	13.64		%	13.80		%	14.80		%	14.90		%
Bank of Hope:
Common Equity Tier 1	12.95		%	12.75		%	12.56		%	13.44		%	13.46		%
Tier 1 Leverage	11.40		%	11.33		%	11.43		%	11.45		%	11.79		%
Tier I risk-based	12.95		%	12.75		%	12.56		%	13.44		%	13.46		%
Total risk-based	13.66		%	13.46		%	13.69		%	14.61		%	14.70		%
Asset Quality Data:
Nonaccrual loans	$	46,775		$	40,074		$	40,801		$	46,353		$	39,154
Loans 90 days or more past due and still accruing (8)	407			305			375			361			5
Restructured loans (accruing)	67,250			48,874			47,984			57,128			33,903
Total nonperforming loans	114,432			89,253			89,160			103,842			73,062
Other real estate owned	10,787			21,990			21,035			21,938			24,288
Total nonperforming assets	$	125,219		$	111,243		$	110,195		$	125,780		$	97,350
Asset Quality Ratios:
Nonaccrual loans to loans receivable	0.42		%	0.38		%	0.65		%	0.83		%	0.77		%
Nonperforming loans to loans receivable	1.03		%	0.85		%	1.43		%	1.87		%	1.44		%
Nonperforming assets to total assets	0.88		%	0.83		%	1.39		%	1.76		%	1.50		%
Nonperforming assets to loans receivable and   other real estate owned	1.13		%	1.05		%	1.76		%	2.25		%	1.91		%
Allowance for loan losses to loans receivable	0.76		%	0.75		%	1.22		%	1.22		%	1.33		%
Allowance for loan losses to nonaccrual loans	180.74		%	197.99		%	187.27		%	146.18		%	171.94		%
Allowance for loan losses to nonperforming loans	73.88		%	88.90		%	85.70		%	65.25		%	92.14		%
Allowance for loan losses to nonperforming assets	67.51		%	71.32		%	69.34		%	53.87		%	69.15		%
Net charge-offs (recoveries) to average loans receivable	0.11		%	0.07		%	(0.01		)%	0.23		%	0.42		%

(1) Net income divided by average assets.

(2) Net income divided by average stockholders’ equity.

(3) Difference between the average yield earned on interest earning assets and the average rate paid on interest bearing liabilities.

(4) Net interest income expressed as a percentage of average interest earning assets.

(5) Interest income divided by average interest earning assets.

(6) Interest expense divided by average interest bearing liabilities.

(7) Noninterest expense divided by the sum of net interest income plus noninterest income.

(8) Excludes acquired credit impaired loans totaling $18.1 million, $19.6 million, $12.2 million, $30.4 million, and $43.8 million as of December 31, 2017, 2016, 2015, 2014, and 2013, respectively.

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis of our financial condition and results of operations together with our Consolidated Financial Statements and accompanying notes presented elsewhere in this Report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those set forth under Item 1A “Risk Factors” and elsewhere in this Report. Please see the “Forward Looking Information” immediately preceding Part I of this Report.

Overview

We offer a full range of commercial and retail banking loan and deposit products through Bank of Hope. We have 63 banking offices in California, New York/New Jersey, Illinois, Washington, Texas, Virginia, Alabama, and Georgia. We have eight loan production offices located in Atlanta, Dallas, Denver, Portland, Seattle, Fremont, Newport Beach, and Laguna Niguel. We offer our banking services through our network of banking offices and loan production offices to our customers who typically are small to medium-sized businesses in our market areas. We accept deposits and originate a variety of loans including commercial business loans, commercial real estate loans, trade finance loans, SBA loans, and consumer loans.

Our results are affected by economic conditions in our markets and to a lesser degree in South Korea. A decline in economic and business conditions in our market areas or in South Korea may have a material adverse impact on the quality of our loan portfolio or the demand for our products and services, which in turn may have a material adverse effect on our financial condition and results of operations.

Our principal business involves earning interest on loans and investment securities that are funded by customer deposits and other borrowings. Our operating income and net income are derived primarily from the difference between interest income received from interest earning assets and interest expense paid on interest bearing liabilities and, to a lesser extent, from fees received in connection with servicing loan and deposit accounts and income from the sale of SBA loans. Our major expenses are the interest we pay on deposits and borrowings, provisions for loan losses and general operating expenses, which primarily consist of salaries and employee benefits, occupancy costs, and other operating expenses. Interest rates are highly sensitive to many factors that are beyond our control, such as changes in the national economy and in the related monetary policies of the FRB, inflation, unemployment, consumer spending and political changes and events. We cannot predict the impact that these factors and future changes in domestic and foreign economic and political conditions might have on our performance.

Mergers and Acquisitions

On January 23, 2017, we announced the signing of a definitive agreement and plan of merger (the “U & I Merger Agreement”) with U & I Financial Corporation (“U & I”) pursuant to which U & I would have merged with and into Hope Bancorp with Hope Bancorp as the surviving corporation. As part of the merger, UniBank, a wholly-owned subsidiary of U & I, would have merged with and into the Bank. Subsequently on September 15, 2017, we announced the termination of the proposed merger with U & I as regulatory approval had not been obtained. The Mutual Termination Agreement provides, among other things, that each party will bear its own costs and expenses in connection with the terminated transaction, without penalties or termination fees. In connection with the termination, the parties have provided mutual releases to one another relating to the merger transaction.

On July 29, 2016, we completed the merger with Wilshire Bancorp, Inc (“Wilshire”). Through the merger, we acquired Wilshire’s thirty-five full-service branch offices, twenty-two of which were located in California, eight in New York and New Jersey, three in Texas, and one of each in Georgia and Alabama. Under the terms of the Merger Agreement, Wilshire shareholders had the right to receive 0.7034 of a share of our common stock in exchange for each share of Wilshire common stock they own in a 100% stock-for-stock transaction.

On August 13, 2013, we completed the acquisition of Foster Bankshares, Inc. (“Foster”), the holding company of Foster Bank. Through the acquisition, we acquired Foster’s nine full-service branch offices, eight of which were located in Illinois and one in Virginia. Under the terms of the acquisition agreement, we issued an aggregate of 189,838 shares of our common stock and paid $2.0 million in cash to Foster shareholders.

On February 15, 2013, we completed the acquisition of Pacific International Bancorp, Inc. (“PIB”), the holding company of Pacific International Bank, a Washington state-chartered bank. Through the acquisition, we acquired PIB’s four full-service branch offices in the Seattle metropolitan area. Under the terms of the acquisition agreement, we issued an aggregate of 632,050 shares of BBCN common stock for each share of PIB common stock owned as of the close of business February 15, 2013.

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Each acquisition was accounted for as an acquisition in accordance with the acquisition method of accounting as detailed in Accounting Standards Codification (“ASC”) 805, Business Combinations. The acquisition method of accounting requires an acquirer to recognize the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree based on their fair values as of the date of acquisition. This process is heavily reliant on measuring and estimating the fair values of all the assets and liabilities of the acquired entities. To the extent we did not have the requisite expertise to determine the fair values of the assets acquired and liabilities assumed, we engaged third party valuation specialists to assist us in determining such values.

Critical Accounting Policies

Our financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and generally accepted practices within the banking industry. The financial information contained within these statements is, to a significant extent, financial information that is based on approximate measures of the financial effects of transactions and events that have already occurred. All of our significant accounting policies are described in Note 1 of our Consolidated Financial Statements presented elsewhere in this Report and are essential to understanding Management’s Discussion and Analysis of Financial Condition and Results of Operations. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of our financial statements. Actual results may materially and adversely differ from these estimates under different assumptions or conditions.

The following is a summary of the more subjective and complex accounting estimates and principles affecting the financial condition and results reported in our financial statements. In each area, we have identified the variables we believe to be the most important in the estimation process. We use the best information available to us to make the estimations necessary to value the related assets and liabilities in each of these areas.

Business Combinations

Mergers and acquisitions are accounted for in accordance with ASC 805 “Business Combinations” using the acquisition method of accounting. Assets and liabilities acquired and assumed are generally recorded at their fair values as of the date of the transaction. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Significant estimates and judgments are involved in the fair valuation and purchase price allocation process. Critical accounting policies related to acquired loans is discussed in more detail below under “Acquired Loans and Purchase Credit Impaired Loans”.

Investment Securities

The fair values of investment securities are generally determined by quoted market prices obtained from independent external broker or external pricing services providers who have experience in valuing these securities. We perform a monthly analysis on the broker quotes received from third parties to assess whether the prices represent a reasonable estimate of the fair value. The procedures include, but are not limited to, initial and on-going review of third party pricing methodologies as well as independent auditors’ reports from the third party regarding its controls over valuation of financial instruments, review of pricing trends and monitoring of trading volumes. We also compare the market prices obtained from one source to another reputable independent external broker or independent external pricing service provider for the reasonableness of the initial market prices obtained on a quarterly basis. We did not adjust any of the prices provided to us by the independent pricing services at December 31, 2017 or 2016.

We evaluate securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the financial condition and near-term prospects of the issuer; the length of time and the extent to which the fair value has been less than cost, and our intention to sell, or whether it is more likely than not that we will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. We do not believe that we had any investment securities available for sale with unrealized losses that would be deemed to be other-than-temporarily impaired as of December 31, 2017. Investment securities are discussed in more detail under “Financial Condition—Investment Securities Portfolios” below.

Allowance for Loan Losses

Accounting for the allowance for loan losses involves significant judgments and assumptions by management, which has a material impact on the carrying value of net loans. The judgments and assumptions used by management are based on historical data and management’s analysis of other qualitative factors, including the current economic environment as described under “Financial Condition—Allowance for Loan Losses” below.

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Purchased Credit Impaired (“PCI”) Loans

In accordance with ASC 310-30, PCI loans were aggregated into pools based on individually evaluated common risk characteristics and expected cash flows were estimated on a pool basis. Each pool is accounted for as a single asset with a single interest rate, cumulative loss rate and cash flow expectation. A loan will be removed from a pool of loans at its carrying value only if the loan is sold or foreclosed, assets are received in satisfaction of the loan or the loan is written off.

The cash flows expected to be received over the life of the pools were estimated by management with the assistance of a third party valuation specialist. These cash flows were utilized in calculating the carrying values of the pools and underlying loans, book yields, effective interest income and impairment, if any, based on actual and projected events. Default rates, loss severity and prepayment speeds assumptions are periodically reassessed and updated within the accounting model to update the expectation of future cash flows. The excess of the cash expected to be collected over the pool’s carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the loan pool using the effective interest yield method. The accretable yield will change due to changes in the timing and amounts of expected cash flows. Changes in the accretable yield are disclosed quarterly.

The excess of the contractual balances due over the cash flows expected to be collected is considered to be nonaccretable difference. The nonaccretable difference represents our estimate of the credit losses expected to occur and was considered in determining the fair value of the loans as of their acquisition date. Subsequent to their acquisition date, any increases in expected cash flows over those expected at the acquisition date in excess of fair value are adjusted through the accretable difference on a prospective basis. Any subsequent decreases in expected cash flows over those expected at their acquisition date are recognized by recording a provision for loan losses.

PCI loans that met the criteria for nonaccrual of interest prior to the acquisition are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of the expected cash flows on such loans and if we expect to collect the new carrying value of the loans in full. As such, we no longer consider the loan to be nonaccrual or nonperforming and accrue interest on these loans, including the impact of any accretable discount. We have determined that we can reasonably estimate future cash flows on any such acquired loans that are past due 90 days or more and on which we are accruing interest and we expect to fully collect the carrying value of the loans.

Goodwill

We assess goodwill for impairment annually. Before applying the two-step goodwill impairment test, in accordance with ASC 350 “Intangibles - Goodwill and Other”, we make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, we do not perform the two-step impairment test. We assessed certain qualitative factors to determine whether impairment was likely including: our market capitalization, capital adequacy, continued performance compared to peers, and continued improvement in asset quality trends, among others. Based on our qualitative assessment, we were not required to perform the two-step impairment test as of December 31, 2017.

Goodwill may also be tested for impairment on an interim basis if circumstances change or an event occurs between annual tests that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions and selecting an appropriate control premium. The selection and weighting of the various fair value techniques may result in a higher or lower fair value. Judgment is applied in determining the weighting that is most representative of fair value.

Income Taxes

The provision for income taxes is based on income reported for financial statement purposes, and differs from the amount of taxes currently payable, since certain income and expense items are reported for financial statement purposes in different periods than those for tax reporting purposes. Taxes are discussed in more detail in Note 10 to our Consolidated Financial Statements presented elsewhere in this Report. Accrued taxes represent the net estimated amount due or to be received from taxing authorities. In estimating accrued taxes, we assess the relative merits and risks of the appropriate tax treatment of transactions taking into account statutory, judicial, and regulatory guidance in the context of our tax position. We account for income taxes using the asset and liability approach, the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluates both positive and negative evidence, including the existence of any cumulative losses in the current year and the prior two years, the amount of taxes paid in available carry-back years, the forecasts of future income and taxable income, applicable tax planning strategies, and assessments of current and future economic and business conditions. This analysis is updated quarterly and adjusted as necessary.

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Section 382 of the Internal Revenue Code imposes a limitation (“382 Limitation”) on a corporation’s ability to use any net unrealized built in losses and other tax attributes, such as net operating loss and tax credit carry-forwards, when it undergoes a 50% ownership change over a designated testing period not to exceed three years (“382 Ownership Change”). As a result of the acquisition on July 29, 2016, Wilshire Bancorp underwent a 382 Ownership Change resulting in a 382 Limitation to its net operating loss and tax credit carry-forwards. Wilshire Bancorp did not have a net unrealized built in loss as of the 382 Ownership Change date. Given the applicable 382 Limitation, we expect to fully utilize Wilshire Bancorp’s net operating loss and tax credit carry-forwards before expiration. However, future transactions, such as issuances of common stock or sales of shares of our stock by certain holders of our shares, including persons who have held, currently hold or may accumulate in the future 5% or more of our outstanding common stock for their own account, could trigger a future Section 382 Ownership Change which could limit the our use of these tax attributes.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). Among other changes, the Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%. We have calculated our best estimate of the impact of the Act in our year end income tax provision in accordance with our understanding of the Act and guidance available and as a result have recorded $25.42 million as additional income tax expense in the fourth quarter of 2017, the period in which the legislation was enacted. See Note 10 to the consolidated financial statements for further details.

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Results of Operations

Operations Summary

Our most significant source of income is net interest income, which is the difference between our interest income and our interest expense. Generally, interest income is generated from the loans we extend to our customers and investments, and interest expense is generated from interest bearing deposits our customers have with us and borrowings that we may have, such as FHLB advances, federal funds purchased, and subordinated debentures. Our ability to generate profitable levels of net interest income is largely dependent on our ability to manage the levels of interest earning assets and interest bearing liabilities, and the rates received or paid on them, as well as our ability to maintain sound asset quality and appropriate levels of capital and liquidity. As mentioned above, interest income and interest expense may fluctuate based on factors beyond our control, such as economic or political conditions.

We attempt to minimize the effect of interest rate fluctuations on net interest margin by monitoring our interest sensitive assets and our interest sensitive liabilities. Net interest income can be affected by a change in the composition of assets and liabilities, such as replacing higher yielding loans with a like amount of lower yielding investment securities. Changes in the level of nonaccrual loans and changes in volume and interest rates can also affect net interest income. Volume changes are caused by differences in the level of interest earning assets and interest bearing liabilities. Interest rate changes result from differences in yields earned on assets and rates paid on liabilities.

The other source of our income is noninterest income, including service charges and fees on deposit accounts, loan servicing fees, fees from trade finance activities, net gains on sale of loans that were held for sale and investment securities available for sale, and other income and fees. Our noninterest income can be reduced by charges for other than temporary impairment on investment securities.

In addition to interest expense, our income is impacted by provisions for loan losses and noninterest expense, primarily salaries and benefits and occupancy expense. The following table presents our condensed consolidated statements of income and the increases year over year.

	Year Ended December 31, 2017		Increase				Year Ended December 31, 2016		Increase				Year Ended December 31, 2015
			Amount		%				Amount		%
	(Dollars in thousands)
Interest income	$	572,104	$	150,170	36	%	$	421,934		$108,274	35	%	$	313,660
Interest expense	90,724		32,145		55	%	58,579		17,961		44	%	40,618
Net interest income	481,380		118,025		32	%	363,355		90,313		33	%	273,042
Provision for loan losses	17,360		8,360		93	%	9,000		1,000		13	%	8,000
Noninterest income	66,415		14,596		28	%	51,819		8,128		19	%	43,691
Noninterest expense	266,601		51,626		24	%	214,975		61,591		40	%	153,384
Income before income tax provision	263,834		72,635		38	%	191,199		35,850		23	%	155,349
Income tax provision	124,389		46,937		61	%	77,452		14,361		23	%	63,091
Net income	$	139,445	$	25,698	23	%	$	113,747	$	21,489	23	%	$	92,258

Net Income

Our net income was $139.4 million for 2017 compared to $113.7 million for 2016 and $92.3 million for 2015. Our earnings per common share based on fully diluted shares were $1.03, $1.10 and $1.16 for 2017, 2016 and 2015, respectively. The return on average assets was 1.02%, 1.10% and 1.25% and the return on average stockholders’ equity was 7.31%, 8.47% and 10.11% for 2017, 2016 and 2015, respectively. The decline in return on average assets and average stockholders’ equity was due to the enactment of the Tax Act on December 22, 2017 which resulted in a one-time incremental income tax provision expense from the reassessment of our net deferred tax assets and investments in affordable housing partnerships at a lower corporate tax rate. The total impact to tax provision as a result of the reassessment was $25.4 million consisting of $23.8 million related to our adjustment of our net deferred tax assets and $1.6 million for the adjustment to our investments in affordable housing partnerships.

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Impact of Acquisitions

The comparability of our operating results is affected by our acquisition of Wilshire Bancorp in July 2016. We acquired $4.63 billion in total assets from Wilshire at the time of the acquisition. The acquisition was accounted for using the acquisition method of accounting and, accordingly, Wilshire’s operating results have been included in the consolidated financial statements from the acquisition date. In addition to Wilshire, we acquired Foster Bancshares and Pacific International Bancorp in 2013. Financial information for the year 2017 reflects a full year of combined operations subsequent to the merger with Wilshire, while 2016 reflects seven months of stand-alone operations and five months of combined operations.

Income before income tax provision for the year ended December 31, 2017 and 2016 was impacted by the accretion of discounts and the amortization of premiums relating to past acquisitions. The following table summarizes the accretion and amortization adjustments that are included in net income for the year ended December 31, 2017 and 2016:

	Year Ended December 31,
	2017			2016			2015
	(Dollars in thousands)
Accretion on purchased non-impaired loans	$	18,372		$	9,330		$	9,840
Accretion on purchased credit-impaired loans	21,542			15,817			7,179
Amortizations of premium on low income housing tax credits	(338		)	(127		)	—
Amortization of premiums on acquired FHLB borrowings	1,597			973			384
Accretion of discounts on acquired subordinated debt	(1,045		)	(539		)	(169		)
Amortization of premiums on acquired time deposits and savings	4,903			5,857			186
Amortization of core deposit intangibles	(2,703		)	(1,732		)	(1,068		)
Total acquisition accounting adjustments	$	42,328		$	29,579		$	16,352
Merger-related expenses	(1,781		)	(16,914		)	(1,540		)
Total	$	40,547		$	12,665		$	14,812

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Net Interest Margin and Net Interest Rate Spread

We analyze our earnings performance using, among other measures, the net interest spread and net interest margin. The net interest spread represents the difference between the weighted average yield earned on interest earning assets and average rate paid on interest bearing liabilities. Net interest income, when expressed as a percentage of average total interest earning assets, is referred to as the net interest margin. Our net interest margin is affected by changes in the yields earned on assets and rates paid on liabilities, as well as the ratio of the amounts of interest earning assets to interest bearing liabilities.

Interest rates charged on our loans are affected principally by the demand for such loans, the supply of money available for lending purposes, the interest rate environment, and other competitive factors. These factors are in turn affected by general economic conditions and other factors beyond our control, such as federal economic policies, the general supply of money in the economy, legislative tax policies, governmental budgetary matters, and the actions of the FRB.

The following table presents our net interest margin, net interest rate spread, and our condensed consolidated average balance sheet information, together with interest rates earned and paid on the various sources and uses of funds, for the periods indicated:

	Year Ended December 31,
	2017						2016						2015
	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
	(Dollars in thousands)
INTEREST EARNING ASSETS:
Loans(1)(2)(3)	$	10,642,349	$	529,760	4.98	%	$	8,121,897	$	392,127	4.83	%	$	5,846,658	$	291,344	4.98	%
Securities(3)	1,679,468		36,917		2.20	%	1,276,068		25,442		1.99	%	871,010		18,611		2.14	%
FRB and FHLB stock and other investments	360,086		5,427		1.51	%	281,824		4,365		1.55	%	313,904		3,705		1.18	%
Total interest earning assets	12,681,903		572,104		4.51	%	9,679,789		421,934		4.36	%	7,031,572		313,660		4.46	%
Total noninterest earning assets	967,060						662,274						357,958
Total assets	$	13,648,963					$	10,342,063					$	7,389,530
INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing	$	3,490,440	31,856		0.91	%	$	2,587,548	21,136		0.82	%	1,697,033		12,430		0.73	%
Savings	268,292		1,354		0.50	%	234,332		1,282		0.55	%	193,610		1,670		0.86	%
Time certificates	4,037,259		41,692		1.03	%	3,219,484		25,673		0.80	%	2,377,993		19,312		0.81	%
FHLB advances and federal funds purchased	787,119		10,706		1.36	%	619,557		7,560		1.22	%	503,127		5,645		1.12	%
Other borrowings	96,363		5,116		5.24	%	64,165		2,928		4.49	%	40,694		1,561		3.78	%
Total interest bearing liabilities	8,679,473		90,724		1.05	%	6,725,086		58,579		0.87	%	4,812,457		40,618		0.84	%
Noninterest bearing liabilities and equity:
Demand deposits	2,955,895						2,191,620						1,611,068
Other liabilities	105,849						82,403						53,396
Stockholders’ equity	1,907,746						1,342,954						912,609
Total liabilities and stockholders’ equity	$	13,648,963					$	10,342,063					$	7,389,530
Net interest income			$	481,380					$	363,355					$	273,042
Net interest margin					3.80	%					3.75	%					3.88	%
Net interest spread(4)					3.46	%					3.49	%					3.62	%
Cost of funds(5)					0.78	%					0.66	%					0.63	%

(1) Interest income on loans includes accretion of net deferred loan origination fees and costs, prepayment fees received on loan pay-offs and accretion of discounts on acquired loans. See the table below for detail. The average balance of loans is net of deferred loan origination fees and costs.

(2) Average balances of loans are net of deferred loan origination fees and costs and include nonaccrual loans and loans held for sale.

(3) Interest income and yields are not presented on a tax-equivalent basis.

(4) Yield on interest earning assets minus cost of interest bearing liabilities.

(5) Yield on interest bearing liabilities and noninterest bearing deposits.

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The following table presents net loan origination fees, loan prepayments fee income, interest reversed for nonaccrual loans, and discount accretion income included as part of loan interest income for the years indicated:

Year ended December 31,	Net Loan Origination Fees		Loan Prepayment Fee Income		Interest Reversed for Nonaccrual Loans, Net of Income Recognized			Accretion of Discounts on Acquired Loans
	(Dollars in thousands)
2017	$	1,485	$	3,963	$	(419	)	$	39,914
2016	$	1,798	$	3,491	$	(483	)	$	25,147
2015	$	1,540	$	2,202	$	27		$	17,019

Net Interest Income

Net interest income was $481.4 million for 2017, compared to $363.4 million for 2016 and $273.0 million for 2015. Changes in net interest income are a function of changes in interest rates and volume of interest earning assets and interest bearing liabilities. The table below sets forth information regarding the changes in interest income and interest expense for the periods indicated. The total change for each category of interest earning assets and interest bearing liabilities is segmented into the change attributable to variations in volume (changes in volume multiplied by the old rate) and the change attributable to variations in interest rates (changes in rates multiplied by the old volume). Nonaccrual loans are included in average loans used to compute this table.

	For the year ended December 31,
	2017 Compared to 2016							2016 Compared to 2015
	Net Increase		Change due to					Net Increase (Decrease)			Change due to
			Rate			Volume					Rate			Volume
	(Dollars in thousands)
INTEREST INCOME:
Interest and fees on loans	$	137,633	$	12,512		$	125,121	$	100,783		$	(9,327	)	$	110,110
Interest on securities	11,475		2,810			8,665		6,831			(1,318		)	8,149
Interest on other investments	1,062		(120		)	1,182		660			1,068			(408		)
TOTAL INTEREST INCOME	$	150,170	$	15,202		$	134,968	$	108,274		$	(9,577	)	$	117,851
INTEREST EXPENSE:
Interest on demand deposits	$	10,720	$	2,697		$	8,023	$	8,706		$	1,567		$	7,139
Interest on savings	72		(104		)	176		(388		)	(692		)	304
Interest on time deposits	16,019		8,608			7,411		6,361			(355		)	6,716
Interest on FHLB advances and federal funds purchased	3,146		937			2,209		1,915			526			1,389
Interest on other borrowings	2,188		545			1,643		1,367			334			1,033
TOTAL INTEREST EXPENSE	$	32,145	$	12,683		$	19,462	$	17,961		$	1,380		$	16,581
NET INTEREST INCOME	$	118,025	$	2,519		$	115,506	$	90,313		$	(10,957	)	$	101,270

Net interest income before provision for loan losses increased by $118.0 million, or 32%, during 2017. The increase was primarily due to an increase in average interest earning assets by 31% during the year which resulted in an increase of $135.0 million in interest income due to volume. Interest bearing liabilities increased by 29% for 2017 compared to the previous year, which resulted in an increase of $19.5 million in interest expense due to volume. Although yields on interest earnings assets increased for 2017 compared to 2016, the increase was largely offset by the increase in cost of deposits for the same period.

Net interest income increased $90.3 million, or 33%, during 2016. The increase was primarily due to an increase in average interest earning assets by 38% during the year which resulted in an increase of $117.9 million in interest income due to volume. Interest bearing liabilities increased 40% during the year. The corresponding increase in interest expense due to volume was $16.6 million. The growth in interest earning assets was partially offset by decreasing yields in both loans and investment securities throughout the same period.

Average interest earnings assets and liabilities for 2017 included the full year impact from assets acquired and liabilities assumed from Wilshire, while average interest earnings assets and liabilities for 2016 included only five months of asset and liability balances acquired from Wilshire.

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Interest Income

Interest income was $572.1 million for 2017, compared to $421.9 million for 2016 and $313.7 million for 2015. The yield on average interest earning assets was 4.51% for 2017, compared to 4.36% for 2016 and 4.46% for 2015.

Comparison of 2017 with 2016

The increase in interest income of $150.2 million, or 36%, for 2017 compared to 2016 was primarily a result of the growth in total loans and investments. The increase in 2017 was a result of both organic growth and the full year impact of the assets acquired from Wilshire compared to only a five month impact of assets acquired from Wilshire for 2016. Average total loans increased $2.52 billion in 2017 compared to 2016 and total investments increased $403.4 million in the same period. Discount accretion income on acquired loans increased in 2017 totaling $39.9 million compared to $25.1 million for 2016. Accretion income on loans acquired from Wilshire was recognized throughout the entire year in 2017, whereas in 2016, accretion income was recorded in only the last five months of the year subsequent to the acquisition in July 2016.

Comparison of 2016 with 2015

The increase in interest income of $108.3 million, or 35%, for 2016 compared to 2015 was primarily a result of income on loans and investments acquired from the acquisition of Wilshire in July 2016. The fair value of loans acquired from Wilshire at acquisition totaled $3.82 billion and the fair value of investments totaled $478.9 million. The average balances of gross loans increased by $2.28 billion during the year and average investments increased by $405.1 million for the same period. This increase in interest income from the increase in overall loans was partially offset by a decline in interest income from a reduction in loan yield. Loan discount accretion increased by $8.1 million, from $17.0 million for the year ended December 31, 2015 to $25.1 million for the year ended December 31, 2016.

Interest Expense

Deposits

Interest expense on deposits was $74.9 million for 2017 compared to $48.1 million for 2016 and $33.4 million for 2015. The average cost of deposits was 0.70% for 2017, compared to 0.58% for 2016 and 0.57% for 2015. The average cost of interest bearing deposits was 0.96%, compared to 0.80% for 2016 and 0.78% for 2015.

Comparison of 2017 with 2016

The increase in interest expense on total deposits of $26.8 million, or 56%, for 2017, compared to 2016 was due to an increase in interest bearing liabilities in addition to an overall increase in rates offered in 2017. Federal funds rates was increased by the Federal Open Market Committee (“FOMC”) in June of 2017 and again in December of 2017. As of result of the 25 basis point increase in interest rates in June 2017, many of our deposits were priced higher and time deposits were renewed and opened at higher interest rates increasing our total cost of deposits for 2017. In addition, average deposits for 2017 included a full year of balances assumed from Wilshire while 2016 only reflected five months of assumed deposits in the average deposit balance. The average balance of noninterest bearing deposits accounted for 27.5% of total average deposits at December 31, 2017 compared to 26.6% at December 31, 2016.

Comparison of 2016 with 2015

The increase in interest expense on total deposits of $14.7 million, or 44%, for 2016, compared to 2015 was due to an increase in interest bearing deposits acquired from Wilshire. The fair value of deposits assumed from Wilshire at acquisition was $3.81 billion. The average balance of interest bearing deposits increased by $1.77 billion in 2016 compared to 2015. In addition, the average rate on average interest bearing deposits increased by 2 basis points. The average balance of noninterest bearing deposits accounted for 26.6% of total average deposits at December 31, 2016, compared to 27.4% at December 31, 2015.

Borrowings

Borrowings include borrowings from the FHLB, federal funds purchased, and subordinated debentures. As part of our asset-liability management, we utilize FHLB advances to supplement our deposit source of funds. Therefore, there may be fluctuations in these balances depending on the short-term liquidity and longer-term financing needs of the Bank.

Average FHLB advances and federal funds purchased were $787.1 million in 2017, compared to $619.6 million in 2016 and $503.1 million in 2015. Interest expense on FHLB advances and federal funds purchased was $10.7 million for 2017 compared to $7.6 million for 2016 and $5.6 million for 2015. The average cost of FHLB advances and federal funds purchased was 1.36% for 2017, compared to 1.22% for 2016 and 1.12% for 2015. The average cost of FHLB advances and federal funds purchased includes the amortization of premiums recorded on advances acquired from prior acquisitions. Total amortization for 2017 was $1.6 million, compared to $973 thousand in 2016 and $384 thousand in 2015. We repaid $1.02 billion in FHLB advances in 2017

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with an average rate of 1.02%. In addition, we borrowed $1.49 billion in FHLB advances and federal funds purchased with an average rate of 1.39% in 2017.

Other borrowings include subordinated debentures which bear interest at 3-month LIBOR plus a designated spread. With the acquisition of Wilshire, we assumed four subordinated debentures at a fair value of $56.9 million. There were no other changes in our balance of subordinated debentures during 2016 or 2017, except for the increase related to the discount accretion on subordinated debentures acquired from previous acquisitions.

Provision for Loan Losses

The provision for loan losses reflects our judgment of the current period cost associated with credit risk inherent in our loan portfolio. The loan loss provision for each period is dependent upon many factors, including loan growth, net charge-offs, changes in the composition of the loan portfolio, delinquencies, assessments by management, third parties’ and regulators’ examination of the loan portfolio, the value of the underlying collateral on problem loans and the general economic conditions in our market areas. Specifically, the provision for loan losses represents the amount charged against current period earnings to achieve an allowance for loan losses that, in our judgment, is adequate to absorb probable incurred losses inherent in our loan portfolio. Periodic fluctuations in the provision for loan losses result from management’s assessment of the adequacy of the allowance for loan losses; however, actual loan losses may vary in material respects from current estimates. If the allowance for loan losses is inadequate, we may be required to record additional loan loss provision, which may have a material adverse effect on our business and our financial condition.

Comparison of 2017 with 2016

The provision for loan losses was $17.4 million for 2017, an increase of $8.4 million, or 93%, from $9.0 million for 2016. The provision was calculated based on net charge offs of $12.2 million during the year and an increase in the required allowance for loan losses primarily due to an increase in loan volume which also contributed to the increase in provision.

Comparison of 2016 with 2015

The provision for loan losses was $9.0 million for 2016, an increase of $1.0 million, or 13%, from $8.0 million for 2015. The provision was calculated based on net charge offs of $6.1 million during the year and an increase in the required allowance for loan losses primarily due to an increase in loan volume. Loans acquired from Wilshire during 2016 were recorded at fair value and therefore did not significantly impact the provision for loan losses during the year.

See “Financial Condition—Allowance for Loan Losses” for a description of our methodology for determining the allowance for loan losses.

Noninterest Income

Noninterest income is primarily comprised of service charges on deposit accounts, net gains on sales of SBA and residential mortgage loans, and other fees and income. Noninterest income was $66.4 million for 2017 compared to $51.8 million for 2016 and $43.7 million for 2015.

Comparison of 2017 with 2016

The increase in noninterest income for 2017 over 2016 primarily reflected increases in service charges on deposit accounts, loan servicing fees, net gain on sales of SBA loans, and other income and fees.

Service charges on deposits increased $4.7 million, or 29%, to $20.6 million due mostly to an increase of $2.8 million in analysis fees charged on demand deposits accounts and an increase of $1.3 million in non-sufficient funds collected from business and personal accounts. The increase in deposits service charges in 2017 was largely due to the full year impact of the increase in deposits from the acquisition of Wilshire.

Loan servicing fees increased by $1.9 million, or 54%, to $5.4 million in 2017 compared to $3.5 million in 2016. The increase in loan servicing fees in 2017 was primarily a result of an increase in sales of residential loans and SBA loans in 2016 and 2017. We earn servicing fees on loans we continue to service subsequent to the sale of the loan. As more loans continue to be sold, our servicing fees continue to increase until the loans are paid off.

Net gains on sales of SBA loans increased by $4.0 million, or 46%, to $12.8 million in 2017 from $8.8 million in 2016. The volume of sales of SBA loans and the net gains recorded from the sales are primarily driven by the production of SBA loans which increased during in 2017. SBA loans sold totaled $177.4 million in 2017 compared to $116.1 million in 2016. The increase in SBA loans sold in 2017 was due to the full year operations of the combined bank after the merger with Wilshire, while 2016 represented only five months of combined operations.

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Other income and fees increased by $3.1 million, or 27% in 2017 compared to 2016. Loan recoveries on pre-merger charged-off loans and miscellaneous income increased $1.2 million in 2017 and gains on sale of fixed assets increased by $1.0 million in 2017 compared to the previous year mostly due to the sale of a building and associated land at the end of 2017.

Comparison of 2016 with 2015

The increase in noninterest income for 2016 over 2015 primarily reflected increases in service charges on deposit accounts and other income and fees. These increases were offset by a decrease in net gains on sales of SBA loans.

Service charges on deposits increased $3.8 million, or 31%, to $16.0 million due to an increase of $2.2 million in business analysis fees charged and an increase of $1.2 million in non-sufficient funds collected from business and personal accounts. The increase in deposits service charges was largely due to the increase in deposits from the acquisition of Wilshire.

Net gains on sales of SBA loans decreased by $3.9 million, or 31%, to $8.8 million in 2016 from $12.7 million in 2015. The volume of sales of SBA loans and the net gains recorded from the sales are primarily driven by the production of SBA loans which decreased during the year. SBA loans sold during the year totaled $116.1 million in 2016 compared to $165.2 million in 2015.

Other income and fees increased by $3.8 million, or 48%, during 2016 compared to 2015. Miscellaneous income increased $1.8 million in 2016 and fee income from our loan hedging product increased by $789 thousand during the year due to an increase in the volume of transactions. Credit card processing fees also increased by $865 thousand during 2016. Overall other income and fees increased in 2016 compared to 2015 due to the acquisition of Wilshire.

A breakdown of noninterest income by category is shown below:

	Year Ended December 31, 2017		Increase (Decrease)					Year Ended December 31, 2016		Increase (Decrease)					Year Ended December 31, 2015
(Dollars in thousands)			Amount			%				Amount			%
Service fees on deposit accounts	$	20,619	$	4,655		29	%	$	15,964	$	3,758		31	%	$	12,206
International service fees	4,494		801			22	%	3,693		245			7	%	3,448
Loan servicing fees, net	5,433		1,914			54	%	3,519		384			12	%	3,135
Wire transfer fees	5,057		731			17	%	4,326		694			19	%	3,632
Net gains on sales of SBA loans	12,774		4,024			46	%	8,750		(3,915		)	(31	)%	12,665
Net gains on sales of other loans	2,927		7			—	%	2,920		2,650			981	%	270
Net gains on sales or called securities available for sale	301		(649		)	(68	)%	950		526			124	%	424
Other income and fees	14,810		3,113			27	%	11,697		3,786			48	%	7,911
Total noninterest income	$	66,415	$	14,596		28	%	$	51,819	$	8,128		19	%	$	43,691

Noninterest Expense

Noninterest expense is primarily comprised of salaries and benefit expense, occupancy expense, furniture and equipment expense, advertising expenses, professional fees, investment in affordable housing partnership expenses, and other expenses. Noninterest expense was $266.6 million for 2017, compared to $215.0 million for 2016 and $153.4 million for 2015. The increases in noninterest expenses were $51.6 million, or 24%, for 2017 compared to 2016, and $61.6 million, or 40%, for 2016 compared to 2015.

Comparison of 2017 with 2016

The increase in noninterest expense for 2017 over 2016 was due mostly to increases in salaries and employee benefits, occupancy expenses, furniture and equipment, advertising and marketing, professional fees, and investment in affordable housing partnership expenses partially offset by a decline in merger and integration expenses and credit related expenses. Most noninterest expense line items aside from merger and integration expenses and credit related expense increased in 2017 compared to 2016 as expenses for 2017 represented a full year of combined operations after the merger with Wilshire while 2016 represented only five month of combined operations and related expenditures.

Salaries and employee benefits totaled $144.7 million for 2017, an increase of $36.7 million, or 34%, compared to $107.9 million for 2016. The increase was comprised of a $28.2 million increase in employee salary expenses and an increase of $8.5 million in employee benefits. These increases primarily reflect increases in the number of full-time equivalent employees to 1,470 at December 31, 2017, from 1,372 as of December 31, 2016, and 938 at December 31, 2015. The increase in salaries and employee benefits was due to an increase in full-time employees and because 2017 reflected a full year of combined expenses including staff acquired from Wilshire while 2016 reflected salary and benefit expenses for only the last five months of combined operations.

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Occupancy expense increased $4.0 million, or 16%, to $28.6 million for 2017 compared to $24.6 million for 2016. With the acquisition of Wilshire, we assumed 35 branches offices and six loan production offices. Although some of these locations were subsequently closed in accordance with our branch consolidation plan, the remaining lease locations contributed to the overall increase in occupancy expenses for 2017 compared to 2016. The increase in expenses for 2017 was due to the full year of expenditure for leases acquired from Wilshire while 2016 expenditures included Wilshire related lease expenses for only the last five months of the year.

Furniture and equipment expenses increased $2.9 million, or 25%, to $14.6 million for 2017 compared to $11.7 million for 2016. The increase in these expenses in 2017 compared to the previous year was also due to the full year of combined furniture and equipment expenses after the merger with Wilshire compared to only five months of expenses after the merger with Wilshire in 2016.

Advertising and marketing expenses increased $3.0 million, or 40%, to $10.3 million for 2017 compared to $7.3 million in 2016. Advertising and marketing expenses for 2017 included $1.5 million in sponsorship fees paid to sponsor the Ladies Professional Golf Association (“LPGA”) Bank of Hope Founders Cup event for the first time in March 2017. The remaining increase in 2017 was due to a full year of expenses for the combined entity after the merger with Wilshire compared to five months of combined expenses for 2016.

Professional fees increased $8.4 million, or 128%, to $15.0 million for 2017 compared to $6.6 million for 2016. The increase in professional fees for 2017 compared 2016 was due to an increase in predecessor external auditor fees as well as additional consulting costs associated with new compliance requirements as a result of exceeding $10 billion in total assets. We also had an increase in legal fees for 2017 compared 2016 due mostly to fees related to the proposed merger with U & I Financial Corp., which was terminated in September 2017.

Investments in affordable housing partnership expenses increased $9.8 million, or 238%, to $13.9 million for 2017 compared to $4.1 million in 2016. In 2017, we recorded an impairment of $3.3 million on our investments in affordable housing partnerships after an analysis of the individual investment carrying values compared to their expected future tax benefits. We also recorded an impairment of $1.6 million as a direct result of the Tax Act, which reduced the corporate tax rate to 21%. The impairment that resulted due to the tax reform, was recorded as an increase in tax provision expenses. Other investments in affordable housing partnership expenses are recorded based on the financial statements of the investment projects. We make investments in affordable housing partnerships and receive Community Reinvestment Act credit and tax credits which reduces our overall tax provision rate. Investments in affordable housing partnership expenses that are not impairment related are based on the performance of the underlying investment. We receive updated financial information for our affordable housing partnerships investments and record losses based on the performance of the investment. These losses will eventually be offset by tax credits which reduce our tax provision expense. Investments in affordable housing partnerships increased from $70.1 million at December 31, 2016 to $81.0 million at December 31, 2017.

Credit related expenses decreased $2.4 million, or 80%, to $582 thousand for 2017 compared to $3.0 million for 2016. Credit related expenses declined in 2017 compared to 2016 largely due to a $2.8 million provision reversal for off balance sheet unfunded commitments recorded during the third quarter of 2017. Updated information related to off balance sheet unfunded commitments and utilization rates used in the calculation of the allowance for unfunded commitments resulted in a $2.8 million reduction in the required allowance for the third quarter of 2017. Reserves for off balance sheet unfunded commitments at December 31, 2017 totaled $836 thousand compared to $3.2 million at December 31, 2016.

Merger and integration expenses decreased $15.1 million, or 89%, to $1.8 million for 2017 compared to $16.9 million in 2016. The decline in merger and integration expenses was due to a decline in expenses related to the merger with Wilshire. The bulk of merger and integration expenses for 2016 were related to advisory and legal fees associated with preparing for the acquisition of Wilshire. With the merger completed in 2016, these expenses were greatly reduced in 2017. Merger and integration expense for 2017 mostly consisted of remaining expenses related to the merger with Wilshire but also included expenses for the now terminated merger with U & I Financial Corp.

Other expenses increased $2.0 million, or 13%, to $16.8 million in 2017 compared to $14.8 million in 2016. Amortization of core deposit intangible included in other expenses increased $1.0 million from $1.7 million in 2016 to $2.7 million in 2017. The increase in other expenses was mostly due to a full year of combined other expenses after the merger with Wilshire compared to only five month of combined expenses recorded for 2016.

Comparison of 2016 with 2015

The increase in noninterest expense for 2016 over 2015 was due mostly to increases in salaries and employee benefits, merger and integration expenses, and occupancy expenses. All noninterest expense line items were increased in 2016 compared to 2015 due to the acquisition of Wilshire in the third quarter of 2016.

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Salaries and employee benefits totaled $107.9 million for 2016, an increase of $23.0 million, or 27% compared to $84.9 million for 2015. The increase was comprised mostly of a $14.1 million increase in employee salaries and an increase of $4.1 million in provision for bonuses. These increases primarily reflect increases in the number of full-time equivalent employees to 1,372 at December 31, 2016 from 938 as of December 31, 2015. The increase in full-time employees was directly a result of the acquisition of Wilshire in the third quarter of 2016.

Occupancy expense increased $5.2 million, or 27%, to $24.6 million for 2016 compared to $19.4 million in 2015. With the acquisition of Wilshire, we assumed 35 branches offices and six loan production offices. Although some of these locations were closed with our branch consolidation plan, the remaining lease locations contributed to the overall increase in occupancy expenses for 2016.

Merger and integration expenses increased $15.4 million to $16.9 million for 2016 compared to $1.5 million in 2015. Of the $16.9 million in merger and integration expenses for 2016, $16.8 million was related to the acquisition of Wilshire in July 2016. The bulk of these expenses were related to financial advisory and legal fees associated with preparing for the acquisition of Wilshire.

Other expenses increased $5.3 million, or 56%, to $14.8 million in 2016, compared to $9.5 million in 2015. The increase in other expenses was attributed to increases in amortization on our core deposit intangible assets and an increase in expenses related to our directors. All of these increases were in some way related to the acquisition of Wilshire.

A breakdown of noninterest expense by category is provided below:

	Year Ended December 31, 2017		Increase (Decrease)					Year Ended December 31, 2016		Increase				Year Ended December 31, 2015
(Dollars in thousands)			Amount			%				Amount		%
Salaries and employee benefits	$	144,669	$	36,725		34	%	$	107,944	$	23,045	27	%	$	84,899
Occupancy	28,587		4,013			16	%	24,574		5,183		27	%	19,391
Furniture and equipment	14,643		2,917			25	%	11,726		2,481		27	%	9,245
Advertising and marketing	10,281		2,961			40	%	7,320		2,230		44	%	5,090
Data processing and communications	12,179		776			7	%	11,403		2,224		24	%	9,179
Professional fees	14,954		8,398			128	%	6,556		971		17	%	5,585
Investment in affordable housing partnerships expenses	13,862		9,762			238	%	4,100		2,658		184	%	1,442
FDIC assessments	5,173		1,008			24	%	4,165		77		2	%	4,088
Credit related expenses	582		(2,372		)	(80	)%	2,954		1,030		54	%	1,924
OREO expense, net	3,100		608			24	%	2,492		969		64	%	1,523
Merger and integration expense	1,781		(15,133		)	(89	)%	16,914		15,374		998	%	1,540
Other	16,790		1,963			13	%	14,827		5,349		56	%	9,478
Total noninterest expense	$	266,601	$	51,626		24	%	$	214,975	$	61,591	40	%	$	153,384

Income Tax Provision

The provision for income taxes for 2017 was $124.4 million, compared to $77.5 million in 2016 and $63.1 million in 2015. The effective income tax rate was 47.15% for 2017 compared to 40.51% for 2016 and 40.61% for 2015. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act which among other changes, reduces the U.S. federal corporate tax rate from 35% to 21%. As a result of the Tax Act, we had to reassess our net deferred tax assets and investments in affordable housing partnerships at the lower tax rate. This resulted in additional tax provision expenses of $25.4 million which increased our overall tax rate for 2017. See Note 10 of Notes to Consolidated Financial Statements for more detailed information on income taxes.

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Financial Condition

Our total assets were $14.21 billion at December 31, 2017 compared to $13.44 billion at December 31, 2016, an increase of $765.3 million, or 6% year over year. The increase in assets for 2017 compared to 2016 was principally due to the increase in loans from higher loan originations in 2017 as well as an increase in investment securities due to purchases throughout the year.

Loan Portfolio

We offer various products designed to meet the credit needs of our borrowers. Our lending activities primarily consist of commercial real estate loans, commercial business loans, trade finance, and consumer loans. Gross loans receivable rose by $559.2 million to $11.10 billion at December 31, 2017 from $10.54 billion at December 31, 2016. The remaining discount on acquired loans at December 31, 2017 totaled $85.5 million compared to $110.4 million at December 31, 2016.

We experienced an increase in all loan types apart from residential real estate and commercial business loans in 2017 compared to the previous year. The rates of interest charged on adjustable rate loans are set at specified spreads based on the prime lending rate and vary as the prime lending rate varies. Approximately 43% of our total loans were adjustable rate loans at December 31, 2017 compared to 47% at December 31, 2016.

With certain exceptions, we are permitted under applicable law to make unsecured loans to single borrowers (including certain related persons and entities) in aggregate amounts of up to 15% of the sum of our total capital and our allowance for loan losses (as defined for regulatory purposes) and certain capital notes and debentures issued by us, if any. As of December 31, 2017, our lending limit was approximately $245.1 million per borrower for unsecured loans. For lending limit purposes, a secured loan is defined as a loan secured by collateral having a current fair value of at least 100% of the amount of the loan or extension of credit at all times and satisfying certain other requirements. In addition to unsecured loans, we are permitted to make such collateral-secured loans in an additional amount up to 10% (for a total of 25%) of our total capital and the allowance for loan losses for a total limit of approximately $408.5 million to one borrower. The largest aggregate amount of loans that the Bank had outstanding to any one borrower and related entities was $127.8 million, which were performing at December 31, 2017.

The following table shows the composition of our loan portfolio by type of loan on the dates indicated:

	December 31,
	2017					2016					2015					2014					2013
	Amount			%		Amount			%		Amount			%		Amount			%		Amount			%
	(Dollars in thousands)
Loan portfolio composition:
Real estate loans:
Residential	$	49,774		0	%	$	57,884		1	%	$	33,797		0	%	$	21,415		0	%	$	10,039		0	%
Commercial	8,142,036			73	%	7,842,573			75	%	4,912,655			78	%	4,324,349			78	%	3,821,163			75	%
Construction	316,412			3	%	254,113			2	%	123,030			2	%	94,086			2	%	72,856			2	%
Total real estate loans	8,508,222			76	%	8,154,570			78	%	5,069,482			80	%	4,439,850			80	%	3,904,058			77	%
Commercial business	1,780,869			16	%	1,832,021			17	%	980,153			16	%	903,621			16	%	949,093			19	%
Trade finance	166,664			2	%	154,928			1	%	99,163			2	%	134,762			2	%	124,685			2	%
Consumer and other	647,102			6	%	403,470			4	%	102,573			2	%	89,849			2	%	98,507			2	%
Total loans outstanding	11,102,857			100	%	10,544,989			100	%	6,251,371			100	%	5,568,082			100	%	5,076,343			100	%
Less: deferred loan fees	(282		)			(1,657		)			(3,030		)			(2,890		)			(2,168		)
Gross loans receivable	11,102,575					10,543,332					6,248,341					5,565,192					5,074,175
Less: allowance for loan losses	(84,541		)			(79,343		)			(76,408		)			(67,758		)			(67,320		)
Loans receivable, net	$	11,018,034				$	10,463,989				$	6,171,933				$	5,497,434				$	5,006,855

Real Estate Loans

Our real estate loans consist primarily of loans secured by deeds of trust on commercial real estate, including SBA loans secured by commercial real estate. It is our general policy to restrict commercial real estate loan amounts to 75% of the appraised value of the property at the time of loan funding. We offer both fixed and floating interest rate loans. The maturities on such loans are generally up to seven years (with payments determined on the basis of principal amortization schedules of up to 25 years and a balloon payment due at maturity). Real estate loans secured by non-consumer residential real estate comprise less than 1% of the total loan portfolio (consumer residential mortgage loans are classified separately as consumer loans). Construction loans are also a small portion of the total real estate portfolio, comprising approximately 3% of total loans outstanding. Total real estate loans, consisting primarily of commercial real estate loans, increased $353.7 million or, 4%, to $8.51 billion at December 31, 2017 from $8.15 billion at December 31, 2016. The increase was mostly due to higher levels of loan originations for the year ended December 31, 2017 compared to the prior year.

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Other Loans

Commercial business loans include term loans to businesses, lines of credit, trade finance facilities, commercial SBA loans, equipment leasing loans, and warehouse lines of credit. Business term loans are generally provided to finance business acquisitions, working capital, and/or equipment purchases. Lines of credit are generally provided to finance short-term working capital needs. Trade finance facilities are generally provided to finance import and export activities. SBA loans are provided to small businesses under the U.S. SBA guarantee program. Short-term credit facilities (payable within one year) typically provide for periodic interest payments, with principal payable at maturity. Term loans (usually 5 to 7 years) normally provide for monthly payments of both principal and interest. SBA commercial loans usually have a longer maturity (7 to 10 years). These credits are reviewed on a periodic basis, and most loans are secured by business assets and/or real estate. Warehouse lines of credit are used by mortgage originators to fund mortgages which are then pledged to the Bank as collateral until the mortgage loans are sold and the lines of credit are paid down. The typical duration of these lines of credit from the time of funding to pay-down ranges from 10-30 days. Although collateralized by mortgage loans, the structure of warehouse lending agreements results in the commercial and industrial loan treatment for these types of loans. During 2017, commercial business loans decreased $51.2 million, or 3%, to $1.78 billion at December 31, 2017 from $1.83 billion at December 31, 2016, primarily due to a decline in warehouse lines of credit. Consumer loans comprise approximately 6% of the total loan portfolio. Most of our consumer loan portfolio consists of single-family mortgages, but also include automobile loans, home equity lines and loans, signature (unsecured) lines of credit and loans, and credit card loans. Consumer loans increased $243.6 million, or 60%, to $647.1 million at December 31, 2017 from $403.5 million at December 31, 2016. The increase in consumer loans was due primarily to an increase in originations of single-family mortgages in 2017.

We provide lines of credit to business customers usually on an annual renewal basis. We normally do not make loan commitments in material amounts for periods in excess of one year.

The following table shows our loan commitments and letters of credit outstanding at the dates indicated:

	December 31,
	2017		2016		2015		2014		2013
	(Dollars in thousands)
Commitments to extend credit	$	1,526,981	$	1,592,221	$	802,251	$	586,714	$	668,306
Standby letters of credit	74,748		63,753		45,083		41,987		44,190
Other commercial letters of credit	74,147		52,125		36,256		37,439		56,380
Total	$	1,675,876	$	1,708,099	$	883,590	$	666,140	$	768,876

Nonperforming Assets

Nonperforming assets consist of nonaccrual loans, accruing loans that are 90 days or more past due, accruing restructured loans, and OREO.

Loans are placed on nonaccrual status when they become 90 days or more past due, unless the loan is both well-secured and in the process of collection. Loans may be placed on nonaccrual status earlier if the full and timely collection of principal or interest becomes uncertain. When a loan is placed on nonaccrual status, unpaid accrued interest is charged against interest income. Loans are charged off when collection of the loan is determined unlikely. Loans are restructured when, for economic or legal reasons related to the borrower’s financial difficulties, the Bank grants a concession to the borrower that it would not otherwise consider. OREO consists of real estate acquired by the Bank through foreclosure or similar means, including by deed from the owner in lieu of foreclosure, and is held for future sale.

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Nonperforming assets were $125.2 million at December 31, 2017 compared to $111.2 million at December 31, 2016. Nonperforming assets at December 31, 2017 increased from nonperforming assets at December 31, 2016 due to the increase in nonaccrual loans which was partially offset by a decline in OREO. The following table illustrates the composition of nonperforming assets and nonperforming loans by legacy loans (loans originated by us) and acquired loans as of the dates indicated:

	December 31,
	2017		2016		2015		2014		2013
	(Dollars in thousands)
Nonaccrual loans	$	46,775	$	40,074	$	40,801	$	46,353	$	39,154
Loans past due 90 days or more and still accruing	407		305		375		361		5
Accruing restructured loans	67,250		48,874		47,984		57,128		33,904
Total nonperforming loans	114,432		89,253		89,160		103,842		73,063
Other real estate owned	10,787		21,990		21,035		21,938		24,288
Total nonperforming assets	$	125,219	$	111,243	$	110,195	$	125,780	$	97,351
Nonaccrual loans:
Legacy Portfolio	$	28,235	$	28,944	$	28,469	$	28,815	$	18,440
Acquired Portfolio	18,540		11,130		12,332		17,538		20,714
Total nonaccrual loans	$	46,775	$	40,074	$	40,801	$	46,353	$	39,154
Nonperforming loans:
Legacy Portfolio	$	77,305	$	74,890	$	73,422	$	83,609	$	50,536
Acquired Portfolio	37,127		14,363		15,738		20,233		22,527
Total nonperforming loans	$	114,432	$	89,253	$	89,160	$	103,842	$	73,063

Subsequent to December 31, 2017, we downgraded one lending relationship with two commercial business loans with ties to the entertainment industry to nonaccrual status because additional information came to light that could potentially affect the collectibility of these loans. Although these two loans totaling $13.5 million were performing and well secured as of December 31, 2017, as of this Report date, it is probable that we will not be able to fully collect all of the principal and interest on these loans in accordance with the contractual terms.

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Maturity of Loans

The following table illustrates the maturity distribution intervals of loans outstanding as of December 31, 2017.

	December 31, 2017
	Loans Maturing
	Within One Year		After One to Five Years		After Five Years		Total Loans Outstanding
	(Dollars in thousands)
Real estate loans:
Residential	$	8,030	$	31,888	$	9,856	$	49,774
Commercial	744,389		4,079,659		3,317,988		8,142,036
Construction	253,272		59,773		3,367		316,412
Total real estate loans	1,005,691		4,171,320		3,331,211		8,508,222
Commercial business loans	822,939		560,072		397,858		1,780,869
Trade finance loans	165,734		930		—		166,664
Consumer loans	34,507		25,726		586,869		647,102
Total loans outstanding	$	2,028,871	$	4,758,048	$	4,315,938	$	11,102,857
Fixed	$	540,169	$	3,299,120	$	2,440,850	$	6,280,139
Variable	1,488,702		1,458,928		1,875,088		4,822,718
Total loans outstanding	$	2,028,871	$	4,758,048	$	4,315,938	$	11,102,857

Concentrations

Our lending activities are predominately in California, New Jersey and the New York City, Houston, Dallas, Chicago, and Seattle metropolitan areas. At December 31, 2017, loans from California represented 67.9% of the total loans outstanding and loans from New York and New Jersey represented 14.5%. The remaining 17.6% of total loans outstanding represented loans from other states. Although we have a diversified loan portfolio, a substantial portion of the loan portfolio and credit performance depends on the economic stability of Southern California. Within the California market, most of our business activity is with customers located within Los Angeles County (58.7%). Therefore, our exposure to credit risk is significantly affected by changes in the economy in the Los Angeles County area. Within our commercial real estate loan portfolio, the largest industry concentrations are hotel/motel (19.2%), retail building (21.0%), gas station & car wash (11.3%), and industrial & warehouse (10.1%). Within our commercial and industrial loan portfolio, the largest industry concentrations are wholesalers (22.7%), retail trade (18.1%), manufacturing (14.7%), and services (10.1%).

Allowance for Loan Losses

The Bank has implemented a multi-faceted process to identify, manage, and mitigate the credit risks that are inherent in the loan portfolio. For new loans, each loan application package is fully analyzed by experienced reviewers and approvers. In accordance with current lending approval authority guidelines, a majority of loans are approved by the Management Loan Committee (“MLC”) and Directors Loan Committee (“DLC”). For existing loans, the Bank maintains a systematic loan review program, which includes internally conducted reviews and periodic reviews by external loan review consultants. Based on these reviews, loans are graded as to their overall credit quality, which is measured based on: the sufficiency of credit and collateral documentation; proper lien perfection; proper approval by loan committee(s); adherence to any loan agreement covenants; compliance with internal policies and procedures, and with laws and regulations; adequacy and strength of repayment sources including borrower or collateral generated cash flow; payment performance; and liquidation value of the collateral. We closely monitor loans that management has determined require further supervision because of the loan size, loan structure, and/or specific circumstances of the borrower.

When principal or interest on a loan is 90 days or more past due, a loan is generally placed on nonaccrual status unless it is considered to be both well-secured and in the process of collection. Further, a loan is considered a loss in whole or in part when (1) it appears that loss exposure on the loan exceeds the collateral value for the loan, (2) servicing of the unsecured portion has been discontinued or (3) collection is not anticipated due to the borrower’s financial condition and general economic conditions in the borrower’s industry. Any loan or portion of a loan judged by management to be uncollectible is charged against the allowance for loan losses, while any recoveries are credited to such allowance.

The allowance for loan losses was $84.5 million at December 31, 2017, compared to $79.3 million at December 31, 2016. We recorded provisions for loan losses of $17.4 million in 2017 compared to $9.0 million in 2016, and $8.0 million in 2015.

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During 2017, we charged off $17.4 million in loans outstanding and recovered $5.2 million in loans previously charged off. Total Criticized Loans, or loan rated special mention, substandard, doubtful, or loss, at December 31, 2017 were $568.5 million compared to $556.7 million at December 31, 2016. The allowance for loan losses was 0.76% of gross loans at December 31, 2017 compared to 0.75% at December 31, 2016. In addition to allowance for loan losses, we had $836 thousand in allowances for unused loan commitments as of December 31, 2017, compared to $3.2 million as of December 31, 2016.

For loans not classified as impaired loans, general loan loss allowances are provided to cover probable and incurred losses. The allowance is determined based first on a quantitative analysis using a loss migration methodology. The loans are classified by type and loan grade and the historical loss migration is tracked for the various stratifications. We further segregate these stratifications between loans accounted for under the amortized cost method (referred to as “Legacy Loans”) and loans acquired (referred to as “Acquired Loans”), as acquired loans were originally recorded at fair value with no carryover of the related allowance for loan losses. See “Financial Condition—Allowance for Loan Losses Methodology” for a detailed description of our loan loss methodology.

Impaired loans as defined by ASC 310-10-35, totaled $114.3 million and $140.4 million, respectively, as of December 31, 2017 and December 31, 2016, with specific allowances of $5.3 million and $7.4 million, respectively. The MLC, DLC, and the Management ALLL Committee of the Bank all review the adequacy of the allowance for loan losses on at least a quarterly basis and more frequently as needed. Based upon these evaluations and internal and external reviews of the overall quality of our loan portfolio, we believe that the allowance for loan losses was adequate to absorb estimated probable incurred losses inherent in the loan portfolio as of December 31, 2017. However, no assurances can be given that the Bank will not experience further losses in excess of the allowance, which may require additional future provisions for loan losses.

The following table presents total nonaccrual and delinquent loans (loans past due 30 to 89 days) as of the dates indicated:

	December 31,
	2017		2016		2015		2014		2013
	(Dollars in thousands)
Real estate—Residential	$	—	$	679	$	—	$	—	$	—
Real estate—Commercial	33,838		37,649		28,085		34,051		35,492
Real estate—Construction	1,300		2,813		1,369		1,521		—
Commercial business	25,546		13,076		15,893		12,875		11,366
Trade finance	—		2,556		1,731		3,194		1,031
Consumer and other	10,451		1,643		2,087		1,211		1,364
Total Nonaccrual and Delinquent Loans	$	71,135	$	58,416	$	49,165	$	52,852	$	49,253
Nonaccrual loans included above	$	46,775	$	40,074	$	40,801	$	46,353	$	39,154

We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt including but not limited to: current financial information, historical payment experience, credit documentation, public information, and current economic trends. We analyze loans individually by classifying the loans as to credit risk. This analysis includes all non-homogeneous loans. This analysis is performed on at least a quarterly basis. We use the following definitions for risk ratings:

• Pass: Loans that meet a preponderance or more of our underwriting criteria and evidence an acceptable level of risk.

• Special Mention: Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

• Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

• Doubtful/Loss: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

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Loans assigned a risk rating of Special Mention or worse are referred to as Criticized Loans and loans assigned a risk rating of Substandard or worse are referred to as Classified Loans. The following table provides the detail of Criticized Loans by risk rating as of the dates indicated:

	December 31,
	2017		2016		2015		2014		2013
	(Dollars in thousands)
Special Mention	$	214,891	$	243,656	$	104,186	$	122,335	$	89,489
Substandard	353,222		311,106		201,362		221,875		258,500
Doubtful	362		1,949		2,214		2,187		7,861
Loss	—		—		—		—		—
Total Criticized Loans	$	568,475	$	556,711	$	307,762	$	346,397	$	355,850

The following table shows the provision for loan losses, the amount of loans charged off, the recoveries on loans previously charged off together with the balance in the allowance for loan losses at the beginning and end of each year, the amount of average and total loans outstanding and other pertinent ratios as of the dates and for the years indicated:

	At or For The Year Ended December 31,
	2017			2016			2015			2014			2013
	(Dollars in thousands)
LOANS:
Average loans receivable, including loans held for sale (net of deferred fees)	$	10,642,349		$	8,121,897		$	5,846,658		$	5,355,243		$	4,692,089
Total loans receivables, excluding loans held for sale (net of deferred fees)	11,102,575			10,543,332			6,248,341			5,565,192			5,074,175
ALLOWANCE:
Balance—beginning of year	79,343			76,408			67,758			67,320			66,941
Loans charged off:
Commercial real estate	3,142			910			741			2,726			8,529
Commercial business and trade finance	13,300			7,293			3,530			14,933			12,973
Consumer and other loans	968			757			641			100			567
Total loans charged off	17,410			8,960			4,912			17,759			22,069
Less recoveries:
Commercial real estate	212			1,187			1,947			963			311
Commercial business and trade finance	4,996			1,614			3,011			4,366			1,937
Consumer and other loans	40			94			604			230			200
Total loan recoveries	5,248			2,895			5,562			5,559			2,448
Net loans charged off (recovered)	12,162			6,065			(650		)	12,200			19,621
Provision for loan losses	17,360			9,000			8,000			12,638			20,000
Balance—end of year	$	84,541		$	79,343		$	76,408		$	67,758		$	67,320
RATIOS:
Net loan charge-offs (recoveries) to average loans	0.11		%	0.07		%	(0.01		)%	0.23		%	0.42		%
Allowance for loan losses to gross loans	0.76		%	0.75		%	1.22		%	1.22		%	1.33		%
Net loan charge-offs (recoveries) to allowance for loan losses	14.39		%	7.64		%	(0.85		)%	18.01		%	29.15		%
Net loan charge-offs (recoveries) to provision for loan losses	70.06		%	67.39		%	(8.13		)%	96.53		%	98.11		%
Allowance for loan losses to nonperforming loans	73.88		%	88.90		%	85.70		%	65.25		%	92.14		%

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Allowance for Loan Losses Methodology

We maintain an allowance for loan losses to provide for estimated probable losses that are inherent in our loan portfolio. The allowance is based on our regular quarterly assessments. Our methodologies for measuring the appropriate level of the allowance include the combination of: (1) a quantitative historical loss migration analysis (“Migration Analysis”) for pools of loans and a qualitative analysis of subjective factors and (2) a specific allowance method for impaired loans.

The following table reflects our allocation of the allowance for loan losses by loan category and the ratio of each loan category to total loans as of the dates indicated:

	December 31,
	2017				2016				2015				2014				2013
	Amount of allowance for loan losses		Percent of loans to total loans		Amount of allowance for loan losses		Percent of loans to total loans		Amount of allowance for loan losses		Percent of loans to total loans		Amount of allowance for loan losses		Percent of loans to total loans		Amount of allowance for loan losses		Percent of loans to total loans
	(Dollars in thousands)
Loan Type
Real estate—residential	$	88	—	%	$	209	1	%	$	230	—	%	$	146	—	%	$	25	—	%
Real estate—commercial	57,664		73	%	49,917		75	%	54,505		78	%	46,535		78	%	45,897		75	%
Real estate—construction	930		3	%	1,621		2	%	917		2	%	667		2	%	628		2	%
Commercial business	20,755		16	%	23,547		17	%	16,547		16	%	16,471		16	%	17,592		19	%
Trade finance	1,716		2	%	1,897		1	%	3,592		2	%	3,456		2	%	2,653		2	%
Consumer and other	3,388		6	%	2,152		4	%	617		2	%	483		2	%	525		2	%
Total	$	84,541	100	%	$	79,343	100	%	$	76,408	100	%	$	67,758	100	%	$	67,320	100	%

The adequacy of the allowance for loan losses is determined by management based upon an evaluation and review of the credit quality of the loan portfolio, consideration of historical loan loss migration experience, relevant internal and external factors that affect the collection of a loan, and other pertinent factors.

The Migration Analysis is a formula methodology based on the Bank’s actual historical net charge off experience for each loan pool and loan risk grade (Pass, Special Mention, Substandard and Doubtful). The migration analysis is centered on the Bank’s internal credit risk rating system. Our internal and external credit reviews are used to determine and validate loan risk grades. This credit review system takes into consideration factors such as: borrower’s background and experience; historical and current financial condition; credit history and payment performance; economic conditions and their impact on various industries; type, fair value, and volatility of the value of collateral; lien position; and the financial strength of any guarantors.

A general loan loss allowance is provided on loans not specifically identified as impaired (“non-impaired loans”). For non- impaired loans, including loans acquired without credit deterioration, the allowance is determined first based on a quantitative analysis using a loss migration methodology. The loans are classified by type and loan grade and the historical loss migration is tracked for the various stratifications. Loss experience is quantified for a specified period determined by management and then weighted to give more weight to the most recent periods. That loss experience is then applied to the stratified portfolio at the end of each quarter. As of December 31, 2017, we utilized nineteen non-homogeneous loan pools in the quantitative analysis process. The non-impaired commercial real estate loan portfolio was stratified into fourteen different loan pools based on property types and the non-impaired commercial and industrial loan portfolio was stratified into five different loan pools based on loan type in order to allocate historic loss experience to more granular loan pools.

Additionally, in order to systematically quantify the credit risk impact of other trends and changes within the loan portfolio, the Bank utilizes qualitative adjustments to the Migration Analysis within established parameters. The parameters for making adjustments are established under a Credit Risk Matrix that provides seven possible scenarios for each of the factors below. The matrix allows for up to three positive (major, moderate and minor), three negative (major, moderate and minor), and one neutral credit risk scenarios within each factor for each loan type pool. Generally, the factors are considered to have no significant impact (neutral) to our historical migration ratios. However, if information exists to warrant adjustment to the Migration Analysis, changes are made in accordance with the established parameters supported by narrative and/or statistical analysis. The Credit Risk Matrix and the nine possible scenarios enable the Bank to qualitatively adjust the Loss Migration Ratio or individual specific reserve allocations by as much as 50 basis points in either direction (positive or negative) for each loan type pool. This matrix considers the following nine factors, which are patterned after the guidelines provided under the Federal Financial Institutions Examination Council (“FFIEC”) Interagency Policy Statement on the Allowance for Loan and Lease Losses:

• Changes in lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices.

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• Changes in national and local economic and business conditions and developments, including the condition of various market segments.

• Changes in the nature and volume of the loan portfolio.

• Changes in the experience, ability and depth of lending management and staff.

• Changes in the trends of the volume and severity of past due and classified loans and changes in trends in the volume of nonaccrual loans, troubled debt restructurings and other loan modifications.

• Changes in the quality of our loan review system and the degree of oversight by the Directors.

• Changes in the value of underlying collateral for collateral dependent loans.

• The existence and effect of any concentrations of credit, and changes in the level of such concentrations.

• The effect of external factors such as competition and legal and regulatory requirements on the level of estimated losses in our loan portfolio.

We also establish specific loss allowances for loans where we have identified potential credit risk conditions or circumstances related to a specific individual credit. The specific allowance amounts are determined by a method prescribed by ASC 310-10-35-22, Measurement of Impairment. The loans identified as impaired are accounted for in accordance with one of the three acceptable valuation methods: 1) the present value of future cash flows discounted at the loan’s effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral, if the loan is collateral dependent. For the collateral dependent impaired loans, we obtain an appraisal to determine the amount of impairment as of the date that the loan became impaired. The appraisals are based on an “as is” valuation. To ensure that appraised values remain current, we generally obtain either an internally prepared evaluation report or an updated appraisal every twelve months from a qualified independent appraiser. If the fair value of the collateral, less cost to sell, is less than the recorded amount of the loan, we then recognize impairment by creating or adjusting an existing valuation allowance with a corresponding charge to the provision for loan losses. If an impaired loan is expected to be collected through liquidation of the collateral, the loan is deemed to be collateral dependent and the amount of impairment is charged off against the allowance for loan losses.

We consider a loan to be impaired when it is probable that not all amounts due (principal and interest) will be collectible in accordance with the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The significance of payment delays and payment shortfalls is determined on a case-by-case basis by taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed.

For commercial business loans, real estate loans and certain consumer loans, we base the measurement of loan impairment on the present value of the expected future cash flows, discounted at the loan’s effective interest rate or on the fair value of the loan’s collateral if the loan is collateral dependent. We evaluate most consumer loans for impairment on a collective basis, because these loans have generally smaller balances and are homogeneous in the underwriting terms and conditions, and in the type of collateral. If a loan is deemed to be impaired, the amount of the impairment is supported by a specific allowance amount which is included in the allowance for loan losses through a charge to the provision for loan losses.

The scope for evaluation of individual impairment includes all loans risk graded Doubtful or Loss, all troubled debt restructured loans (“TDRs”) and all loans risk graded Substandard that are greater than $500 thousand regardless of performance under their contractual terms. Impaired loans at December 31, 2017 were $114.3 million, a net decrease of $26.1 million from $140.4 million at December 31, 2016. This net decrease in impaired loans is due primarily to payoffs and charge-offs of impaired loans in 2017.

Investment Security Portfolio

The main objectives of our investment strategy are to provide a source of liquidity while managing our interest rate risk and to generate an adequate level of interest income without taking undue risks. Our investment policy permits investments in various types of securities, certificates of deposits and federal funds sold in compliance with various restrictions in the policy. All of our investment securities are classified as available-for-sale. The securities for which we have the ability and intent to hold to maturity may be classified as held-to-maturity securities. However, we do not currently maintain a held-for-maturity or trading portfolio.

Our available-for-sale securities totaled $1.72 billion at December 31, 2017, compared to $1.56 billion at December 31, 2016. We had no securities that were categorized as held-to-maturity at December 31, 2017 or 2016. We had securities matured, called, or paid down totaling $264.7 million and purchased $572.5 million in securities during the year. In 2017, we sold securities totaling $128.8 million and had a net gain on sale of securities of $301 thousand. At December 31, 2017, we had a carrying balance of $359.2 million in securities that were pledged to secure public deposits, or for other purposes required or permitted by law. $337.7 million in securities were pledged in the State of California time deposit program, $8.0 million was pledged at the United State Department of Justice, and $13.5 million were pledged for public deposits.

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Our investment portfolio consists of government sponsored enterprise (“GSE”) bonds, mortgage backed securities (“MBS”), collateralized mortgage obligations (“CMOs”), mutual funds, corporate securities, and municipal securities.

Our available-for-sale securities portfolio is primarily invested in residential CMOs and residential and commercial MBS, which comprised 94% of our total available-for-sale portfolio as of December 31, 2017 and 2016. At December 31, 2017 and 2016, all of our CMOs and MBS were issued by the Government National Mortgage Association (“GNMA”), Fannie Mae (“FNMA”), or Freddie Mac (“FHLMC”), which guarantee the contractual cash flows of these investments.

The following table presents the amortized cost, estimated fair value, and unrealized gain and losses on our investment securities as of the dates indicated:

	December 31,
	2017							2016
	Amortized Cost		Estimated Fair Value		Unrealized Loss			Amortized Cost		Estimated Fair Value		Unrealized Gain (Loss)
	(Dollars in thousands)
Debt securities*:
Agency securities	$	—	$	—	$	—		$	12,005	$	12,008	$	3
CMOs	856,193		838,709		(17,484		)	715,981		705,667		(10,314		)
MBS:
Residential	477,676		471,214		(6,462		)	611,201		602,852		(8,249		)
Commercial	308,046		301,365		(6,681		)	130,103		125,089		(5,014		)
Corporate Securities	4,997		4,475		(522		)	11,576		11,127		(449		)
Municipal Securities	82,542		82,537		(5		)	88,018		86,839		(1,179		)
Total debt securities	1,729,454		1,698,300		(31,154		)	1,568,884		1,543,582		(25,202		)
Mutual funds	22,425		21,957		(468		)	13,425		13,058		(367		)
Total	$	1,751,879	$	1,720,257	$	(31,622	)	$	1,582,309	$	1,556,640	$	(25,569	)

* GSE bonds were issued by GNMA, FNMA, and FHLMC and are all mortgage-backed securities.

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The following table summarizes the maturity of securities based on carrying value and their related weighted average yield (non-tax equivalent) at December 31, 2017:

	Within One Year				After One But Within Five Years				After Five But Within Ten Years				After Ten Years				Total
	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
	(Dollars in thousands)
CMOs	$	—	—	%	$	—	—	%	$	7,278	1.48	%	$	831,431	2.25	%	$	838,709	2.24	%
MBS:
Residential	—		—	%	—		—	%	90,697		1.94	%	380,517		2.35	%	471,214		2.27	%
Commercial	—		—	%	—		—	%	161,663		2.75	%	139,702		2.27	%	301,365		2.53	%
Corporate Securities	—		—	%	—		—	%	—		—	%	4,475		3.51	%	4,475		3.51	%
Municipal Securities	—		—	%	11,729		4.00	%	33,581		3.24	%	37,227		4.24	%	82,537		3.80	%
Mutual funds			—	%	—		—	%	21,957		2.04	%	—		—	%	21,957		2.04	%
Total	$	—	—	%	$	11,729	4.00	%	$	315,176	2.49	%	$	1,393,352	2.34	%	$	1,720,257	2.37	%

The following table shows our investments with gross unrealized losses and their estimated fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2017:

	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
		(Dollars in thousands)
CMOs*	38	$	425,198	$	(5,954	)	53	$	408,526	$	(11,588	)	91	$	833,724	$	(17,542	)
MBS:
Residential*	20	195,086		(1,282		)	23	230,616		(5,701		)	43	425,702		(6,983		)
Commercial*	16	186,357		(1,614		)	8	115,008		(5,067		)	24	301,365		(6,681		)
Corporate securities	1	4,475		(522		)	—	—		—			1	4,475		(522		)
Municipal securities	18	9,295		(69		)	3	22,144		(806		)	21	31,439		(875		)
Mutual funds	1	8,899		(101		)	3	11,579		(384		)	4	20,478		(485		)
Total	94	$	829,310	$	(9,542	)	90	$	787,873	$	(23,546	)	184	$	1,617,183	$	(33,088	)

* Investments in U.S. Government agency and U.S. Government sponsored enterprises

ASC 320 requires an entity to assess whether the entity has the intent to sell a debt security or more likely than not will be required to sell the debt security before its anticipated recovery. If either of these conditions is met, an entity must recognize an other than temporary impairment (“OTTI”). If an entity does not intend to sell the debt security and will not be required to sell the debt security, the entity must consider whether it will recover the amortized cost basis of the security. If the present value of expected cash flows is less than the amortized cost basis of the security, OTTI shall be considered to have occurred. OTTI is then separated into the amount of the total impairment related to credit losses and the amount of the total impairment related to all other factors. An entity determines the impairment related to credit losses by comparing the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. OTTI related to the credit loss is then recognized in earnings. OTTI related to all other factors is recognized in other comprehensive income.

ASC 320 requires an entity to assess whether the entity plans to sell an equity security and does not expect the fair value of the equity security to recover by the time of the sale. If both of these conditions are met, an entity must recognize OTTI when the decision to sell is made. The entity considers facts and circumstances present at the time of assessment, which include the consideration of general market conditions, and the duration and extent to which the fair value is below cost. OTTI related to equity securities is recognized in earnings.

We evaluate securities for OTTI on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and the extent to which the fair value of the securities has been less than our cost for the securities, and our intention to sell, or whether it is more likely than not that we will be required to sell, a security in an unrealized loss position before recovery of its amortized

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cost basis. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.

We consider the losses on our investments in an unrealized loss position at December 31, 2017 to be temporary based on: 1) the likelihood of recovery; 2) the information available to us relative to the extent and duration of the decline in market value; and 3) our intention not to sell, and our determination that it is more likely than not that we will not be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. The increase in the net unrealized loss position can be attributed to the change in Treasury yields due to the increases in interest rates at December 31, 2017 compared to rates at December 31, 2016.

Deposits

Deposits are our primary source of funds for loans and investments. We offer a wide variety of deposit account products to commercial and consumer customers. Total deposits increased to $10.85 billion at December 31, 2017 from $10.64 billion at December 31, 2016.

The increase in deposits during 2017 was primarily due to an increase in time deposits and noninterest bearing demand deposits in 2017 partially offset by a decline in money market and savings accounts. At December 31, 2017, we had $797.1 million in brokered time deposits and money market accounts and $300.0 million in California State Treasurer deposits compared to $724.7 million in brokered time deposits and money market accounts and $300.0 million in California State Treasurer deposits at December 31, 2016. The brokered deposits represented approximately 7.3% of our total deposits as of December 31, 2017 compared to 6.8% as of December 31, 2016. The California State Treasurer deposits have up to six months maturities with a weighted average interest rate of 1.37% at December 31, 2017 compared to 0.45% at December 31, 2016.

Although our deposits may vary with local and national economic conditions, we do not believe that our deposits are seasonal in nature. The following table sets forth the balances of our deposits by category for the periods indicated:

	December 31,
	2017				2016				2015
	Amount		Percent		Amount		Percent		Amount		Percent
	(Dollars in thousands)
Demand, noninterest bearing	$	2,998,734	27	%	$	2,900,241	27	%	$	1,694,427	27	%
Demand, interest bearing	3,332,703		31	%	3,401,446		32	%	1,983,250		31	%
Savings	240,509		2	%	301,906		3	%	187,498		3	%
Time deposit of more than $250,000	1,279,108		12	%	1,077,024		10	%	1,021,937		16	%
Other time deposits	2,995,555		28	%	2,961,418		28	%	1,453,864		23	%
Total Deposits	$	10,846,609	100	%	$	10,642,035	100	%	$	6,340,976	100	%

The following table indicates the maturity schedules of our time deposits, for the years indicated:

	December 31,
	2017				2016				2015
	Amount		Percentage		Amount		Percentage		Amount		Percentage
	(Dollars in thousands)
Three months or less	$	857,761	20	%	$	1,006,581	25	%	$	700,991	28	%
Over three months through six months	1,075,202		25	%	719,986		18	%	467,615		19	%
Over six months through twelve months	1,923,003		45	%	1,761,056		43	%	1,083,248		44	%
Over twelve months	418,697		10	%	550,819		14	%	223,947		9	%
Total time deposits	$	4,274,663	100	%	$	4,038,442	100	%	$	2,475,801	100	%

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The following table indicates the maturity schedules of our time deposits in amounts of more than $250,000 as of December 31, 2017:

	Amount		Percentage
	(Dollars in thousands)
Three months or less	$	249,568	20	%
Over three months through six months	473,313		37	%
Over six months through twelve months	493,054		38	%
Over twelve months	63,173		5	%
Total	$	1,279,108	100	%

There can be no assurance that we will be able to continue to replace maturing time deposits at competitive rates. However, if we are unable to replace these maturing time deposits with new deposits, we believe that we have adequate liquidity resources to fund these obligations through secured credit lines with the FHLB and FRB, as well as with liquid assets.

Borrowings

We utilize a combination of short-term and long-term borrowings from the FHLB and other sources to help manage our liquidity position. However, borrowings are used as a secondary source of funds and deposits are our main source of liquidity.

Federal Funds Purchased

Federal funds purchased generally mature within one to three business days from the transaction date. At December 31, 2017, we had $69.9 million in overnight federal funds purchased at an average weighted rate of 1.79%. We did not have any federal funds purchased at December 31, 2016.

FHLB Advances

We may borrow from the FHLB on a long term basis to provide funding for certain loans or investment securities strategies, as well as for asset liability management strategies. As of December 31, 2017 and 2016, FHLB advances totaled $1.16 billion and $754.3 million with average remaining maturities of 2.0 years and 2.2 years, respectively. The weighted average rate, net of fair value adjustments, for FHLB advances was 1.63% at December 31, 2017 compared to 1.22% at year-end 2016. As of December 31, 2017, our remaining available FHLB borrowing capacity was $2.32 billion. See Note 8 of the Consolidated Financial Statements for more detailed information on FHLB advances.

Subordinated Debentures

At December 31, 2017, nine wholly-owned subsidiary grantor trusts (“Trusts”) had issued $126.0 million of pooled trust preferred securities (“Trust Preferred Securities”). The Trust Preferred Securities accrue and pay distributions periodically at specified annual rates as provided in the related indentures for the securities. The Trusts used the net proceeds from the offering of the Trust Preferred Securities to purchase a like amount of subordinated debentures (the “Debentures”) issued by us. The Debentures are the sole assets of the trusts. Our obligations under the Debentures and related documents, taken together, constitute a full and unconditional guarantee by us of the obligations of the trusts. The Trust Preferred Securities are mandatorily redeemable upon the maturity of the Debentures, or upon earlier redemption as provided in the indentures. We have the right to redeem the Debentures in whole (but not in part) on or after specific dates, at a redemption price specified in the indentures plus any accrued but unpaid interest to the redemption date.

As of December 31, 2017 and 2016, the Trusts are not reported on a consolidated basis pursuant to ASC 810, Consolidation. Therefore, the capital securities of $126.0 million are not presented on the consolidated statements of financial condition. Instead, the long-term subordinated debentures of $100.9 million as of December 31, 2017, issued by us to the Trusts and the investment in Trusts’ common stock of $3.9 million (included in other assets) are separately reported. During the third quarter of 2016, we acquired four subordinated debentures from Wilshire at a fair value of $56.9 million, net of $25.5 million in total discount.

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The following table summarizes our outstanding Debentures related to the Trust Preferred Securities at December 31, 2017:

Trust Name	Issuance Date	Amount		Carry Value of Subordinated Debentures		Maturity Date	Coupon Rate	Current Rate	Interest Distribution and Callable Date
(Dollars in thousands)
Nara Capital Trust III	06/05/2003	$	5,000	$	5,155	06/15/2033	3 month LIBOR + 3.15%	4.74%	Every 15th of Mar, Jun, Sep, and Dec
Nara Statutory Trust IV	12/22/2003	5,000		5,155		01/07/2034	3 month LIBOR + 2.85%	4.21%	Every 7th of Jan, Apr, Jul and Oct
Nara Statutory Trust V	12/17/2003	10,000		10,310		12/17/2033	3 month LIBOR + 2.95%	4.55%	Every 17th of Mar, Jun, Sep and Dec
Nara Statutory Trust VI	03/22/2007	8,000		8,248		06/15/2037	3 month LIBOR +1.65%	3.24%	Every 15th of Mar, Jun, Sep and Dec
Center Capital Trust I	12/30/2003	18,000		13,827		01/07/2034	3 month LIBOR +2.85%	4.21%	Every 7th of Jan, Apr, Jul and Oct
Wilshire Statutory Trust II	03/17/2005	20,000		15,314		03/17/2035	3 month LIBOR +1.79%	3.39%	Every 17th of Mar, Jun, Sep, and Dec
Wilshire Statutory Trust III	09/15/2005	15,000		10,767		09/15/2035	3 month LIBOR +1.40%	2.99%	Every 15th of Mar, Jun, Sep, and Dec
Wilshire Statutory Trust IV	07/10/2007	25,000		17,479		09/15/2037	3 month LIBOR +1.38%	2.97%	Every 15th of Mar, Jun, Sep, and Dec
Saehan Capital Trust I	03/30/2007	20,000		14,598		06/30/2037	3 month LIBOR +1.62%	3.31%	Every 30th of Mar, Jun, Sep, and Dec
Total Trust		$	126,000	$	100,853

Capital Resources

Historically, our primary source of capital has been the retention of earnings, net of dividend payments to shareholders. We seek to maintain capital at a level sufficient to assure our stockholders, our customers, and our regulators that Hope Bancorp and the Bank subsidiary are financially sound. For this purpose, we perform ongoing assessments of our components of capital as well as projected sources and uses of capital in conjunction with projected increases in assets and levels of risk.

In conjunction with the acquisition of PIB, we assumed a warrant (related to the TARP Capital Purchase Plan) to purchase shares of its common stock. At the acquisition date, the warrants were canceled and converted into a warrant to purchase BBCN Bancorp common stock which expires on December 12, 2018. As of December 31, 2017, the U.S. Treasury Department held the warrant for the purchase of 20,379 shares of our common stock.

On July 29, 2016 we acquired Wilshire in an all-stock transaction. Pursuant to the merger agreement, Wilshire shareholders received 0.7034 shares of our common stock for each share of Wilshire stock owned. We therefore issued 55,493,726 shares of its common stock to Wilshire shareholders at $15.37 per share. This resulted in the issuance of $852.9 million in common shares of HOPE stock during the third quarter of 2016.

Our total stockholders’ equity increased $72.8 million, or 3.9%, to $1.93 billion at December 31, 2017 from $1.86 billion at December 31, 2016. Net income of $139.4 million during the year contributed to the increase in overall stockholders’ equity, partially offset by a decrease in equity from other comprehensive loss of $3.5 million, a reclassification of stranded tax effects of $3.6 million, and dividends paid on common stock of $67.7 million. As permitted by ASU 2018-02, we reclassified $3.6 million in stranded tax effects in accumulated other comprehensive income that resulted from the reduction in corporate tax rates to retained earnings related to the deferred tax assets for unrealized losses on investments securities and interest only strip. The total reclassification for the year ended December 31, 2017 was $3.6 million. At December 31, 2017, our ratio of common equity to total assets was 13.57% compared to 13.80% at December 31, 2016, and our tangible common equity represented 10.54% of tangible assets at December 31, 2017, compared with 10.60% of tangible assets at December 31, 2016. Tangible common equity per share was $10.68 at December 31, 2017, compared with $10.15 at December 31, 2016. Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and net other intangible assets divided by total assets less goodwill and net other intangible assets. We review tangible common equity to tangible assets in evaluating the capital levels.

The following tables compare Hope Bancorp’s and the Bank’s actual capital ratios at December 31, 2017 to those required by our regulatory agencies to generally be deemed “adequately capitalized” for capital adequacy classification purposes:

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	December 31, 2017
	Actual				Required				Excess
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
Hope Bancorp
Common equity tier 1 capital (to risk-weighted assets):	$	1,471,193	12.30	%	$	538,435	4.50	%	$	932,758	7.80	%
Total capital (to risk-weighted assets)	$	1,653,521	13.82	%	$	957,217	8.00	%	$	696,304	5.82	%
Tier 1 capital (to risk-weighted assets)	$	1,568,144	13.11	%	$	717,913	6.00	%	$	850,231	7.11	%
Tier 1 capital (to average assets)	$	1,568,144	11.54	%	$	543,528	4.00	%	$	1,024,616	7.54	%

	December 31, 2017
	Actual				Required				Excess
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
Bank of Hope
Common equity tier 1 capital (to risk-weighted assets):	$	1,548,401	12.95	%	$	538,178	4.50	%	$	1,010,223	8.45	%
Total capital (to risk-weighted assets)	$	1,633,778	13.66	%	$	956,761	8.00	%	$	677,017	5.66	%
Tier 1 capital (to risk-weighted assets)	$	1,548,401	12.95	%	$	717,571	6.00	%	$	830,830	6.95	%
Tier 1 capital (to average assets)	$	1,548,401	11.40	%	$	543,441	4.00	%	$	1,004,960	7.40	%

New Capital Rules requires a capital conservation buffer of 2.50% above the three minimum risked weighted capital ratios. In January 2016, the capital conservation buffer started to phase in at 0.625% and increases at annual increments of 0.625% until fully-phased in January 2019. At January 1, 2016, the capital conservation buffer stood was 0.625% and increased to 1.25% at January 1, 2018, and increased again to 1.875% on January 1, 2018, and will be fully phased-in on January 1, 2019 at 2.50%. Our capital ratios at December 31, 2017 and December 31, 2016 exceeded all of the regulatory minimums including the fully-phased in capital conservation buffer.

Liquidity Management

Liquidity risk is the risk of reduction in our earnings or capital that would result if we were not able to meet our obligations when they come due without incurring unacceptable losses. Liquidity risk includes the risk of unplanned decreases or changes in funding sources and changes in market conditions that affect our ability to liquidate assets quickly and with minimum loss of value. Factors considered in liquidity risk management are the stability of the deposit base; the marketability, maturity, and pledging of our investments; the availability of alternative sources of funds; and our demand for credit.

The objective of our liquidity management is to have funds available to meet cash flow requirements arising from fluctuations in deposit levels and the demands of daily operations, which include funding of securities purchases, providing for customers’ credit needs, and ongoing repayment of borrowings.

We manage our liquidity actively on a daily basis and it is reviewed periodically by our management-level Asset/Liability Management Committee (“ALM”) and the Board Asset Liability Committee (“ALCO”). This process is intended to ensure the maintenance of sufficient funds to meet our liquidity needs, including adequate cash flow for off-balance-sheet commitments. In general, our liquidity is managed daily by controlling the level of federal funds and the funds provided by cash flow from operations. To meet unexpected demands, lines of credit are maintained with the FHLB, the Federal Reserve Bank, and other correspondent banks. The sale of investment securities also serves as a source of funds.

Our primary sources of liquidity are derived from financing activities, which include customer and broker deposits, federal funds facilities, and borrowings from the FHLB and the FRB Discount Window. These funding sources are augmented by payments of principal and interest on loans, proceeds from sale of loans, pay down of investment securities, and the liquidation or sale of

53

securities from our available-for-sale portfolio. Primary uses of funds include withdrawal of and interest payments on deposits, originations of loans, purchases of investment securities, payment of operating expenses, and payment of dividends.

Net cash inflows from operating activities totaled $203.9 million, $130.6 million and $108.1 million during 2017, 2016 and 2015, respectively. Net cash inflows from operating activities for 2017 were primarily attributable to proceeds from sales of loans held for sale and net income partially offset by originations of held for sale loans.

Net cash outflows from investing activities totaled $767.3 million, $463.4 million and $935.0 million during 2017, 2016 and 2015, respectively. Net cash outflows for investing activities during 2017 were primarily from purchases of securities available for sale and the net change in loans receivable. These outflows were offset by proceeds received for securities available for sale that were paid down during the year.

Net cash inflows from financing activities totaled $548.2 million, $471.7 million and $663.1 million during 2017, 2016 and 2015, respectively. Net cash inflows from financing activities for 2017 was primarily attributable to an increase in deposits and net proceeds from FHLB advances partially offset by dividends paid on common stock.

When we have more funds than required for our reserve requirements or short-term liquidity needs, we sell federal funds to other financial institutions. Conversely, when we have less funds than required, we may purchase federal funds, borrow funds from the FHLB or the FRB’s Discount Window. As of December 31, 2017, the maximum amount that we were able to borrow on an overnight basis from the FHLB and the FRB was an aggregate of $4.10 billion, and we had $1.23 billion in federal funds purchased and borrowings from the FHLB (including $2.7 million in premiums from acquired advances) and no borrowings outstanding from the FRB. The FHLB System functions as a line of credit facility for qualifying financial institutions. As a member, we are required to own capital stock in the FHLB and may apply for advances from the FHLB by pledging qualifying mortgage loans and certain securities as collateral for these advances.

At times we maintain a portion of our liquid assets in interest bearing cash deposits with other banks, in overnight federal funds sold to other banks, and in investment securities available for sale that are not pledged. Our liquid assets, consist of cash and cash equivalents, interest bearing cash deposits with other banks, overnight federal funds sold to other banks, liquid investment securities available for sale, and loan repayments within 30 days. Liquid assets totaled $1.73 billion and $1.53 billion at December 31, 2017 and 2016, respectively. Cash and cash equivalents, including federal funds sold, totaled $492.0 million at December 31, 2017 compared to $437.3 million at December 31, 2016.

Because our primary sources and uses of funds are deposits and loans, the relationship between gross loans and total deposits provides one measure of our liquidity. Typically, the closer the ratio of loans to deposits is to, or the more it exceeds, 100%, the more we rely on borrowings and other sources to provide liquidity. Alternative sources of funds such as FHLB advances, brokered deposits and other collateralized borrowings, that provide liquidity as needed from diverse liability sources are an important part of our asset/liability management strategy. For 2017, our average gross loan to average deposit ratio was 99% unchanged from 2016 and 2015.

We believe our liquidity sources to be stable and adequate to meet our day-to-day cash flow requirements. At December 31, 2017, management was not aware of any demands, commitments, trends, events, or uncertainties that will or are reasonably likely to have a material or adverse effect on our liquidity position. As of December 31, 2017, we are not aware of any material commitments for capital expenditures in the foreseeable future.

Off-Balance- Sheet Activities and Contractual Obligations

The Bank routinely engages in activities that involve, to varying degrees, elements of risk that are not reflected, in whole or in part, in the Consolidated Financial Statements. These activities are part of our normal course of business and include traditional off-balance-sheet credit-related financial instruments, interest rate swap contracts, operating leases and long-term debt.

Traditional off-balance-sheet credit-related financial instruments are primarily commitments to extend credit and standby letters of credit. These activities may require us to make cash payments to third parties in the event specified future events occur. The contractual amounts represent the extent of our exposure in these off-balance-sheet activities. However, since certain off-balance-sheet commitments, particularly standby letters of credit, are expected to expire or be only partially used, the total amount of commitments does not necessarily represent future cash requirements. These activities are necessary to meet the financing needs of our customers.

We do not anticipate that our current off-balance-sheet activities will have a material impact on our future results of operations or financial condition. Further information regarding risks from our off-balance-sheet financial instruments can be found in Note 14 of the Notes to Consolidated Financial Statements and in Item 7A. - “Quantitative and Qualitative Disclosures about Market Risk.”

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We also commit to fund certain affordable housing partnership investments in the future. Funded commitments are presented as investments in affordable housing partnerships in the Consolidated Financial Statements while unfunded commitments are presented as commitments to fund investment in affordable housing partnerships.

We lease our banking facilities and equipment under non-cancelable operating leases, which have remaining terms of up to 15 years. Our facility lease obligations are discussed in Note 14 of the Notes to Consolidated Financial Statements.

The following table summarizes our contractual obligations and commitments to make future payments as of December 31, 2017. Payments shown for time deposits, subordinated debentures, and FHLB advances include interest obligation to their respective repricing dates:

	Payments Due By Period
	Less than 1 year		1-3 years		3-5 years		Over 5 years		Total
	(Dollars in thousands)
Contractual Obligations and Commitments
Time deposits	$	3,889,238	$	397,581	$	25,515	$	—	$	4,312,334
FHLB advances and federal funds purchased *	446,074		529,679		296,981		—		1,272,734
Subordinated debentures *	881		—		—		100,853		101,734
Operating lease obligations	14,055		21,898		14,882		15,863		66,698
Commitments to fund investments in affordable housing partnerships	29,052		7,035		559		1,821		38,467
Unused credit extensions	1,116,157		319,258		54,761		36,805		1,526,981
Standby letters of credit	70,261		487		—		—		70,748
Other commercial letters of credit	71,698		2,449		—		—		74,147
Total	$	5,637,416	$	1,278,387	$	392,698	$	155,342	$	7,463,843

* Interest for variable rate subordinated debentures and FHLB advances were calculated using interest rates at December 31, 2017.

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Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The objective of our asset and liability management activities is to improve our earnings by adjusting the type and mix of assets and liabilities to effectively address changing conditions and risks. Through overall management of our balance sheet and by controlling various risks, we seek to optimize our financial returns within safe and sound parameters. Our operating strategies for attaining this objective include managing our net interest margin through appropriate risk/return pricing of assets and liabilities and emphasizing growth in retail deposits, as a percentage of interest bearing liabilities, to reduce our cost of funds. We also seek to improve earnings by controlling noninterest expense, and enhancing noninterest income. We use risk management instruments to modify interest rate characteristics of certain assets and liabilities to hedge against our exposure to interest rate fluctuations, reducing the effects these fluctuations might have on associated cash flows or values. We also perform periodic internal analyses to measure, evaluate and monitor market risk.

Interest Rate Risk

Market risk is the risk of loss to future earnings, to the fair value of our assets and liabilities, or to future cash flows that may result from changes in the price of a financial instrument. Interest rate risk is the most significant market risk impacting us. Interest rate risk occurs when interest rate sensitive assets and liabilities do not reprice simultaneously or at the same rate of interest or in equal volume. A key objective of our asset and liability management is to manage interest rate risk associated with changing asset and liability cash flows, values of our assets and liabilities, and market interest rate movements. The management of our interest rate risk is governed by policies reviewed and approved annually by the Board of Directors of the Bank. The Board delegates responsibility for interest rate risk management to the ALM, which is composed of the Bank’s senior executives and other designated officers.

The fundamental objective of our ALM is to manage our exposure to interest rate fluctuations while maintaining adequate levels of liquidity and capital. The ALM meets regularly to monitor the interest rate risk, the sensitivity of our assets and liabilities to interest rate changes, the book and fair values of assets and liabilities, and our investment activities, and directs changes in the composition of our interest earning assets and interest bearing liabilities. The ALM reports at least quarterly to the ALCO. Our strategy has been to reduce the sensitivity of our earnings to interest rate fluctuations by more closely matching the effective maturities or repricing characteristics of our assets and liabilities. Certain assets and liabilities, however, may react in different degrees to changes in market interest rates. Further, interest rates on certain types of assets and liabilities may fluctuate prior to changes in market interest rates, while interest rates on other types may lag behind. We consider the anticipated effects of these factors when implementing our interest rate risk management objectives.

Derivative Activity

As part of our asset and liability management strategy, we may enter into derivative financial instruments, such as interest rate swaps, caps, floors, interest rate lock commitments, and forward sales commitments, with the overall goal of minimizing the impact of interest rate fluctuations on our net interest margin. Interest rate swaps and caps involve the exchange of fixed-rate and variable-rate interest payment obligations without the exchange of the underlying notional amounts.

Our monitoring activities related to managing interest rate risk include both interest rate sensitivity “gap” analysis and the use of a simulation model. While traditional gap analysis provides a simple picture of the interest rate risk embedded in the statement of financial condition, it provides only a static view of interest rate sensitivity at a specific point in time and does not measure the potential volatility in forecasted results relating to changes in market interest rates over time. Accordingly, we combine the use of gap analysis with the use of a simulation model, which provides a dynamic assessment of interest rate sensitivity.

The interest rate sensitivity gap is defined as the difference between the amount of interest earning assets anticipated to reprice within a specific time period and the amount of interest bearing liabilities anticipated to reprice within that same time period. A gap is considered positive when the amount of interest rate sensitive assets repricing within a specific time period exceeds the amount of interest bearing liabilities repricing within that same time period. A positive cumulative gap suggests that earnings will increase when interest rates rise and decrease when interest rates fall. A negative cumulative gap suggests that earnings will increase when interest rates fall and decrease when interest rates rise.

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The following table illustrates our combined asset and liability contractual repricing as of December 31, 2017:

	0 - 3 Months			Over 3 Months to 1 Year			Over 1 Year to 5 Years		Over 5 Years		Total
	(Dollars in thousands)
Rate Sensitive Assets
Interest-bearing cash in other banks	$	306,473		$	—		$	—	$	—	$	306,473
Interest-bearing deposits in other financial    institutions and other investments	19,220			18,945			15,201		—		53,366
Securities available for sale	4,475			490			735,912		979,380		1,720,257
Loans outstanding(1)	4,298,142			778,188			5,353,259		702,929		11,132,518
FHLB stock	29,776			—			—		—		29,776
Total rate sensitive assets	$	4,658,086		$	797,623		$	6,104,372	$	1,682,309	$	13,242,390
Rate Sensitive Liabilities
Time deposits	857,761			2,998,205			418,697		—		4,274,663
Money market and NOW	3,332,703			—			—		—		3,332,703
Savings deposits	165,899			39,484			35,126		—		240,509
FHLB advances and federal funds purchased	364,900			65,000			797,693		—		1,227,593
Subordinated Debentures	100,853			—			—		—		100,853
Total rate sensitive liabilities	$	4,822,116		$	3,102,689		$	1,251,516	$	—	$	9,176,321
Net Gap Position	$	(164,030	)	$	(2,305,066	)	$	4,852,856	$	1,682,309
Cumulative Gap Position	$	(164,030	)	$	(2,469,096	)	$	2,383,760	$	4,066,069

 ___________________

(1) Includes loans held for sale of $29.7 million.

The simulation model discussed above provides our ALM with the ability to simulate our net interest income. In order to measure, at December 31, 2017, the sensitivity of our forecasted net interest income to changing interest rates, both rising and falling interest rate scenarios were projected and compared to base market interest rate forecasts. One application of our simulation model measures the impact of market interest rate changes on the net present value of estimated cash flows from our assets and liabilities, defined as our market value of equity. This analysis assesses the changes in market values of interest rate sensitive financial instruments that would occur in response to an instantaneous and sustained increase in market interest rates.

Our net interest income and market value of equity exposure related to these hypothetical changes in market interest rates are illustrated in the following table:

	December 31, 2017				December 31, 2016
Simulated Rate Changes	Estimated Net Interest Income Sensitivity		Market Value of Equity Volatility		Estimated Net Interest Income Sensitivity		Market Value of Equity Volatility
+ 200 basis points	2.18	%	(4.42	)%	2.58	%	(4.05	)%
+ 100 basis points	1.12	%	(2.08	)%	1.15	%	(1.91	)%
- 100 basis points	(2.22	)%	1.00	%	(0.60	)%	1.41	%
- 200 basis points	(8.56	)%	0.60	%	(9.66	)%	0.42	%

The estimated sensitivity does not necessarily represent our forecast of future results and the estimated results may not be indicative of actual changes to our net interest income. These estimates are based upon a number of assumptions including: the nature and timing of interest rate levels including yield curve shape, prepayment on loans and securities, pricing strategies on loans and deposits, and replacement of asset and liability cash flows. While the assumptions used are based on current economic and local market conditions, there is no assurance as to the predictive nature of these conditions including how customer preferences or competitor influences may change. The ALCO, which oversees our interest rate risk management, has established the exposure limits for acceptable changes in net interest income and market value of equity related to these hypothetical changes in market interest rates. Given the limitations of the analyses, management believes that these hypothetical changes are considered tolerable and manageable as of December 31, 2017.

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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The following Consolidated Financial Statements of Hope Bancorp, together with the reports thereon of Crowe Horwath, LLP and BDO USA, LLP begin on page F-1 of this Report and are incorporated herein by reference:

See “Item 15. Exhibits and Financial Statement Schedules” for exhibits filed as a part of this Report.

The supplementary data required by this Item (selected quarterly financial data) is provided in Note 21 “Quarterly Financial Data (unaudited)” in the Notes to the Consolidated Financial Statements.

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

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Item 9A. CONTROLS AND PROCEDURES

a. Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our management, including our President and Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

In designing and evaluating disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

We conducted an evaluation under the supervision and with the participation of our management, including our President and Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of December 31, 2017. Based upon that evaluation, our President and Chief Executive Officer and our Chief Financial Officer determined that our disclosure controls and procedures were effective as of December 31, 2017.

b.     Management’s Annual Report on Internal Control Over Financial Reporting

The management of Hope Bancorp, Inc. (the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting for the Company as defined in Rule 13a-15(f) under the Exchange Act. This system, which our management has chosen to base on the framework set forth in the 2013 Internal Control-Integrated Framework, published by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), is supervised by our President and Chief Executive Officer and Chief Financial Officer, and is effected by the Company’s board of directors, management and other personnel, is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

The Company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and the directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. Further, because of changes in conditions, effectiveness of internal controls over financial reporting may vary over time.

With the participation of our President and Chief Executive Officer and our Chief Financial Officer, and under the direction of our audit committee, our management has conducted an assessment of the effectiveness of the Company’s system of internal control over financial reporting as of December 31, 2017 using the criteria set forth by COSO. Based on this assessment, our management believes that the Company’s system of internal control over financial reporting was effective as of December 31, 2017.

Our independent registered public accounting firm has issued an attestation report on our internal control over financial reporting which is included below in this section.

Remediation of Prior Year Material Weaknesses

As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the SEC on May 18, 2017, management conducted an assessment of the effectiveness of the system of internal control over financial reporting as of December 31, 2016. Based on that assessment, management determined that, as of December 31, 2016, the Company's system of internal control over financial reporting was not effective because of the material weaknesses that were identified and summarized in our Annual Report on Form 10-K for the year ended December 31, 2016. In an effort to remediate the material weaknesses, management, with the oversight of the audit committee, took steps in 2017 that we believe remediated the material weaknesses identified as of December 31, 2016. The Company’s remediation efforts and internal control enhancements relate to, but were not limited to, the following:

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• Internal control over financial reporting related to the review process for the allowance for loan losses was enhanced by strengthening the review and approval process of the allowance for loan losses components, in particular the qualitative adjustment factors. The controls were also enhanced to include a detailed review of the allowance for loan losses by the Company’s Management Allowance Committee;

• Internal control over financial reporting and documentation related to the review process for impaired loans on accrual status and the allowance for loan losses calculation was enhanced through an additional layer of monitoring and review. The Company also enhanced its policies and procedures so that impaired loans on accrual status are reviewed to ensure that the principal and interest is expected to be recovered;

• Internal control over financial reporting related to the review of the consolidated financial statements, including the consolidated statement cash flows, was enhanced to ensure that multiple layers of detailed reviews are performed to prevent potential errors in the consolidated statement of cash flows; and

• The Company hired additional staff, including a SOX Compliance Manager and two additional SOX Compliance Officers, who are part of the Company’s newly established SOX Compliance Department. The Company also enhanced its SOX Compliance Program in 2017 and formed a SOX Steering Committee to oversee the execution of the Company’s SOX Compliance Program.

Additionally, some of the material weaknesses identified as of December 31, 2016 were related to business combinations, however, the Company has had no such activity as of December 31, 2017. Although the controls related to business combinations have not been tested for remediation, management assessed, as of December 31, 2017, the severity of the deficiencies related to business combinations and the maximum potential impact to our consolidated financial statements (in accordance with Auditing Standard 2201). Based on this assessment, management concluded that no material weakness existed as of December 31, 2017 related to business combinations. The Company had no identified material weaknesses as of December 31, 2017.

c.     Changes in Internal Control Over Financial Reporting

Management has determined that there were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the quarter ended December 31, 2017 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. As of December 31, 2017, our management completed its remediation of the material weaknesses identified and summarized in our Annual Report on Form 10-K for the year ended December 31, 2016, and as part of our remediation efforts, the Company made enhancements to our internal control over financial reporting as noted above. However, these changes did not constitute a change in the Company’s internal control over financial reporting.

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Report of Independent Registered Public Accounting Firm

Our independent registered public accounting firm has issued an audit report on our internal control over financial reporting which is included on page F-1 of this report.

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Item 9B. OTHER INFORMATION

None.

62

PART III

Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this Item with respect to the Company’s directors and executive officers, Section 16(a) beneficial ownership reporting compliance, the Company’s Code of Ethics and Business Conduct, director nomination procedures, the Audit Committee and the audit committee financial expert will be filed in Hope Bancorp’s definitive Proxy Statement for its 2018 Annual Meeting of Stockholders (the “2018 Proxy Statement”), which will be filed with the SEC not later than 120 days after December 31, 2017. 

Item 11. EXECUTIVE COMPENSATION

The information required by this Item with respect to director and executive compensation, “Compensation Committee Interlocks and Insider Participation” and “Compensation Committee Report” will be filed in Hope Bancorp’s 2018 Proxy Statement which will be filed with the SEC not later than 120 days after December 31, 2017.

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The information required by this Item with respect to security ownership of certain beneficial owners and management will be filed in Hope Bancorp’s 2018 Proxy Statement which will be filed with the SEC not later than 120 days after December 31, 2017. 

The following table summarizes our equity compensation plans as of December 31, 2017:

Securities Authorized for Issuance Under Equity Compensation Plans

Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)	Weighted average exercise price of outstanding options, warrants and rights (b)		Number of securities remaining available for future issuance under equity compensation plans excluding securities reflected in Column (a) (c)
Equity compensation plans approved by security holders	1,075,423	$	15.06	1,341,621
Equity compensation plans not approved by security holders	—	—		—
Total	1,075,423	$	15.06	1,341,621

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this Item with respect to certain relationships and related transactions and director independence will be filed in Hope Bancorp’s 2018 Proxy Statement which will be filed with the SEC not later than 120 days after December 31, 2017. 

Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by this Item with respect to principal accountant fees and services will be filed in Hope Bancorp’s 2018 Proxy Statement which will be filed with the SEC not later than 120 days after December 31, 2017. 

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PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)(1) Financial Statements: The financial statements listed under Part II-Item 8. “Financial Statements and Supplementary Data” are filed as part of this Annual Report on Form 10-K.

(a)(2) Financial Statement Schedules: All financial statement schedules have been omitted since the required information is either not applicable or not required, or has been included in the Financial Statements and related notes.

(a)(3) List of Exhibits

Number	Description
2.1	Agreement and Plan of Merger, dated as of December 7, 2015, between BBCN Bancorp, Inc. and Wilshire Bancorp, Inc. (incorporated herein by reference to the Current Report on Form 8-K, Exhibit 2.1, filed with the SEC on December 7, 2015)
2.2	Agreement and Plan of Merger, dated as of January 23, 2017, by and between Hope Bancorp, Inc. and U & I Financial Corp. (incorporated herein by reference to the Current Report on Form 8-K, Exhibit 2.1, filed with the SEC on January 24, 2017)
3.1	Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on June 5, 2000 (incorporated herein by reference to Appendix III to the prospectus included in the Registration Statement on Form S-4 filed with the SEC on November 16, 2000)
3.2	Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on May 31, 2002 (incorporated herein by reference to the Registration Statement on Form S-8, Exhibit 3.3, filed with the SEC on February 5, 2003)
3.3	Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on June 1, 2004 (incorporated herein by reference to the Quarterly Report on Form 10-Q, Exhibit 3.1, filed with the SEC on August 9, 2004)
3.4	Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on November 2, 2005 (incorporated herein by reference to the Quarterly Report on Form 10-Q, Appendix B, filed with the SEC on November 9, 2005)
3.5	Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on July 20, 2007 (incorporated herein by reference to the Proxy Statement on Schedule 14A, Appendix C, filed with the SEC on April 19, 2007)
3.6	Certificate of Amendment of Certificate of Incorporation of the Company, filed with the Delaware Secretary of State on November 30, 2011 (incorporated herein by reference to the Annual Report on Form 10-K, Exhibit 3.6, filed with the SEC on March 1, 2013)
3.7	Amended and Restated Bylaws of BBCN Bancorp, Inc. (incorporated herein by reference to the Current Report on Form 8-K, Exhibit 3.1, filed with the SEC on May 11, 2015)
3.8	Certificate of Amendment of Bylaws of Hope Bancorp, Inc. (incorporated herein by reference to the Current Report on Form 8-K, Exhibit 3.2, filed with the SEC on August 1, 2016)
4.1	Junior Subordinated Indenture, dated June 5, 2003, by and between the Nara Bancorp, Inc. as Issuer and The Bank of New York as Trustee (incorporated herein by reference to the Current Report on Form 8-K/A, Exhibit 99.2, filed with the SEC on May 2, 2008)
4.2	Indenture, dated December 17, 2003, by and between Nara Bancorp, Inc. as Issuer and U.S. Bank National Association as Trustee (incorporated herein by reference to the Current Report on Form 8-K/A, Exhibit 99.5, filed with the SEC on May 2, 2008)

64

Number	Description
4.3	Indenture, dated December 22, 2003, between Nara Bancorp, Inc. as Issuer and Wells Fargo Bank, National Association as Trustee (incorporated herein by reference to the Current Report on Form 8-K/A, Exhibit 99.8, filed with the SEC on May 2, 2008)
4.4	Indenture, dated March 22, 2007, by and between Nara Bancorp, Inc. and Wilmington Trust Company (incorporated herein by reference to the Current Report on Form 8-K, Exhibit 4.2, filed with the SEC on March 29, 2007)
4.5	Indenture, dated as of December 30, 2003, between Center Financial Corporation and Wells Fargo Bank, National Association (incorporated herein by reference to Center Financial’s Annual Report on Form 10-K, Exhibit 10.4, for the year ended December 31, 2003, filed with the SEC on March 30, 2004)
4.6	Indenture, dated as of March 17, 2005, between Wilshire Bancorp, Inc. and Wilmington Trust Company (incorporated herein by reference to Wilshire Bancorp’s Annual Report on Form 10-K, Exhibit 4.6, for the year ended December 31, 2006, filed with the SEC on March 16, 2007)
4.7	Indenture, dated as of September 15, 2005, between Wilshire Bancorp, Inc. and Wilmington Trust Company (incorporated herein by reference to Wilshire Bancorp’s Annual Report on Form 10-K, Exhibit 4.9, for the year ended December 31, 2006, filed with the SEC on March 16, 2007)
4.8	Indenture, dated as of July 10, 2007, between Wilshire Bancorp, Inc. and LaSalle Bank National Association (incorporated herein by reference to Wilshire Bancorp’s Quarterly Report on Form 10-Q, Exhibit 4.12, for the quarter ended September 30, 2007, filed with the SEC on November 9, 2007)
4.9	Indenture, dated as of March 30, 2007 between Saehan Bancorp, Inc. and Wilmington Trust Company (incorporated herein by reference to Wilshire Bancorp’s Annual Report on Form 10-K, Exhibit 4.11, for the year ended December 31, 2013, filed with the SEC on March 14, 2014)
10.1	Nara Bancorp, Inc. 2001 Nara Bank 2000 Continuation Long Term Incentive Plan (incorporated herein by reference to the Registration Statement on Form S-8, Exhibit 99.2, filed with the SEC on April 9, 2001)+
10.2	Nara Bank, N.A. Executive Deferred Compensation Plan (incorporated herein by reference to the Annual Report on Form 10-K, Exhibit 10.3, for the year ended December 31, 2001, filed with the SEC on April 1, 2002)+
10.3	Center Bank Executive Deferred Compensation Plan (incorporated herein by reference to the Quarterly Report on Form 10-Q, Exhibit 10.7, for the quarter ended March 31, 2006, filed with the SEC on May 5, 2006)+
10.4	Affiliate Agreement between Nara Bancorp and Nara Bank, N.A. (incorporated herein by reference to the Annual Report on Form 10-K, Exhibit 10.12, for the year ended December 31, 2001, filed with the SEC on April 1, 2002)+
10.5	BBCN Employees’ 401(K) & Profit Sharing Plan, as amended and restated December 1, 2011 (incorporated herein by reference to the Annual Report on Form 10-K, Exhibit 10.16, filed with the SEC on March 1, 2013)+
10.6	Amended and Restated Employment Agreement, dated July 11, 2014, by and between BBCN Bancorp, Inc. and Kevin S. Kim (incorporated herein by reference to the Quarterly Report on Form 10-Q, Exhibit 10.1, filed with the SEC on August 8, 2014)+
10.7	Amended and Restated BBCN Bancorp, Inc. 2007 Equity Incentive Plan (incorporated herein by reference to the Quarterly Report on Form 10-Q, Exhibit 10.1, filed with the SEC on May 11, 2015)+
10.8	Tax Sharing Agreement among BBCN Bancorp, Inc., BBCN Bank, N.A., Nara Bancorp Capital Trust I, Nara Capital Trust III, Nara Statutory Trust IV, Nara Statutory Trust V, Nara Statutory Trust VI, and Center Capital Trust I (incorporated herein by reference to the Annual Report on Form 10-K, Exhibit 10.9, for the year ended December 31, 2015, filed with the SEC on March 4, 2016)+
10.9	BBCN Bancorp, Inc. 2016 BBCN Incentive Compensation Plan (incorporated herein by reference to the S-4 filed with the SEC on March 8, 2016)+
10.10	Bank of Hope 2017 Employee Stock Purchase Program (incorporated herein by reference to the 10-Q filed with the SEC on November 8, 2017)+

65

Number	Description
11.1	Statement regarding Computation of Per Share Earnings (Footnote 18 in the Notes to the Consolidated Financial Statements)*
12.1	Statement regarding computation of Ratios of Earnings to Fixed Charges*
14.1	Director Code of Ethics and Business Conduct*
14.2	Code of Ethics and Business Conduct*
21.1	Subsidiaries of the Registrant*
23.1	Consent of Crowe Horwath LLP*
23.2	Consent of BDO USA, LLP*
31.1	Certification of Chief Executive Officer pursuant to section 302 of Sarbanes-Oxley of 2002*
31.2	Certification of Chief Financial Officer pursuant to section 302 of Sarbanes-Oxley of 2002*
32.1	Certification of Chief Executive Officer pursuant to section 906 of the Public Company Accounting Reform and Investor Protection Act of 2002**
32.2	Certification of Chief Financial Officer pursuant to section 906 of the Public Company Accounting Reform and Investor Protection Act of 2002**
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema Document*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document*

________________

* Filed herewith

** Furnished herewith

+ Management contract or compensatory plan or arrangement

Item 16.    FORM 10-K SUMMARY

None

66

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 1, 2018

HOPE BANCORP, INC.
By:	/s/    KEVIN S. KIM
	Kevin S. Kim
	President and Chief Executive Officer

67

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated.

	Signature/Name	Title	Date
By:	/S/    KEVIN S. KIM	President and Chief Executive Officer	March 1, 2018
	Kevin S. Kim	(Principal Executive Officer)
By:	/S/    ALEX KO	Executive Vice President & Chief Financial Officer	March 1, 2018
	Alex Ko	(Principal Financial and Accounting Officer)
By:	/S/  SCOTT YOON-SUK WHANG	Chairman	March 1, 2018
	Scott Yoon-Suk Whang
By:	/S/    STEVEN S. KOH	Director	March 1, 2018
	Steven S. Koh
By:	/S/    DONALD D. BYUN	Director	March 1, 2018
	Donald D. Byun
By:	/S/    STEVEN J. DIDION	Director	March 1, 2018
	Steven J. Didion
By:	/S/    JINHO DOO	Director	March 1, 2018
	Jinho Doo
By:	/S/    DAISY HA	Director	March 1, 2018
	Daisy Ha
By:	/S/    JIN CHUL JHUNG	Director	March 1, 2018
	Jin Chul Jhung
By:	/S/    CHUNG HYUN LEE	Director	March 1, 2018
	Chung Hyun Lee
By:	/S/    WILLIAM J. LEWIS	Director	March 1, 2018
	William J. Lewis
By:	/S/    DAVID P. MALONE	Director	March 1, 2018
	David P. Malone
By:	/S/    JOHN R. TAYLOR	Director	March 1, 2018
	John R. Taylor
By:	/S/    DALE S. ZUEHLS	Director	March 1, 2018
	Dale S. Zuehls

68

Report of Independent Registered Public Accounting Firm

Shareholders and the Board of Directors of Hope Bancorp, Inc.

Los Angeles, California

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated statement of financial condition of Hope Bancorp, Inc. (the "Company") as of December 31, 2017, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). We also have audited the Company’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2017, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework: (2013) issued by COSO.

Basis for Opinions

The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audit of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

F-1

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

We have served as the Company's auditor since 2017.

Los Angeles, California

March 1, 2018

F-2

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders Hope

Hope Bancorp, Inc.

Los Angeles, California

We have audited the accompanying consolidated balance sheets of Hope Bancorp, Inc. and subsidiaries as of December 31, 2016 and the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the two years in the period ended December 31, 2016. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Hope Bancorp, Inc. and subsidiaries at December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the two years in the period ended December 31, 2016, in conformity with accounting principles generally accepted in the United States of America.

/s/ BDO USA, LLP

Los Angeles, California

May 17, 2017

F-3

HOPE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

DECEMBER 31, 2017 AND 2016

	December 31,
	2017		2016
	(Dollars in thousands, except share data)
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	185,527	$	168,827
Interest-bearing cash in other banks	306,473		268,507
Total cash and cash equivalents	492,000		437,334
Interest-bearing deposits in other financial institutions and other investments	53,366		44,202
Securities available for sale, at fair value	1,720,257		1,556,740
Loans held for sale, at the lower of cost or fair value	29,661		22,785
Loans receivable (net of allowance for loan losses of $84,541 and $79,343 at   December 31, 2017 and December 31, 2016, respectively)	11,018,034		10,463,989
Other real estate owned (“OREO”), net	10,787		21,990
Federal Home Loan Bank (“FHLB”) stock, at cost	29,776		21,964
Premises and equipment, net	56,714		55,316
Accrued interest receivable	29,979		26,880
Deferred tax assets, net	55,203		88,110
Customers’ liabilities on acceptances	1,691		2,899
Bank owned life insurance (“BOLI”)	74,915		73,696
Investments in affordable housing partnerships	81,009		70,059
Goodwill	464,450		462,997
Core deposit intangible assets, net	16,523		19,226
Servicing assets	24,710		26,457
Other assets	47,642		46,778
Total assets	$	14,206,717	$	13,441,422

See accompanying notes to consolidated financial statements.

F-4

HOPE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (continued) DECEMBER 31, 2017 AND 2016
	December 31,
	2017			2016
	(Dollars in thousands, except share data)
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest bearing	$	2,998,734		$	2,900,241
Interest bearing:
Money market and NOW accounts	3,332,703			3,401,446
Savings deposits	240,509			301,906
Time deposits of more than $250,000	1,279,108			1,077,024
Other time deposits	2,995,555			2,961,418
Total deposits	10,846,609			10,642,035
FHLB advances	1,157,693			754,290
Federal funds purchased	69,900			—
Subordinated debentures	100,853			99,808
Accrued interest payable	15,961			10,863
Acceptances outstanding	1,691			2,899
Commitments to fund investments in affordable housing partnerships	38,467			24,409
Other liabilities	47,288			51,645
Total liabilities	12,278,462			11,585,949
STOCKHOLDERS’ EQUITY:
Common stock, $0.001 par value; authorized 150,000,000 shares at December 31, 2017 and December 31, 2016; issued and outstanding, 135,511,891 and 135,240,079 shares at December 31, 2017 and December 31, 2016, respectively	136			135
Additional paid-in capital	1,405,014			1,400,490
Retained earnings	544,886			469,505
Accumulated other comprehensive loss, net	(21,781		)	(14,657		)
Total stockholders’ equity	1,928,255			1,855,473
Total liabilities and stockholders’ equity	$	14,206,717		$	13,441,422

See accompanying notes to consolidated financial statements.

F-5

HOPE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015
	Year Ended December 31,
	2017		2016		2015
	(Dollars in thousands, except per share data)
INTEREST INCOME:
Loans, including fees	$	529,760	$	392,127	$	291,344
Securities	36,917		25,442		18,611
Interest-bearing deposits in other banks and other investments	5,427		4,365		3,705
Total interest income	572,104		421,934		313,660
INTEREST EXPENSE:
Deposits	74,902		48,091		33,412
FHLB advances and federal funds purchased	10,706		7,560		5,645
Other borrowings	5,116		2,928		1,561
Total interest expense	90,724		58,579		40,618
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	481,380		363,355		273,042
PROVISION FOR LOAN LOSSES	17,360		9,000		8,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	464,020		354,355		265,042
NONINTEREST INCOME:
Service fees on deposit accounts	20,619		15,964		12,206
International service fees	4,494		3,693		3,448
Loan servicing fees, net	5,433		3,519		3,135
Wire transfer fees	5,057		4,326		3,632
Net gains on sales of SBA loans	12,774		8,750		12,665
Net gains on sales of other loans	2,927		2,920		270
Net gains on sales or called securities available for sale	301		950		424
Other income and fees	14,810		11,697		7,911
Total noninterest income	66,415		51,819		43,691
NONINTEREST EXPENSE:
Salaries and employee benefits	144,669		107,944		84,899
Occupancy	28,587		24,574		19,391
Furniture and equipment	14,643		11,726		9,245
Advertising and marketing	10,281		7,320		5,090
Data processing and communication	12,179		11,403		9,179
Professional fees	14,954		6,556		5,585
Investments in affordable housing partnerships expenses	13,862		4,100		1,442
FDIC assessments	5,173		4,165		4,088
Credit related expenses	582		2,954		1,924
OREO expense, net	3,100		2,492		1,523
Merger and integration expense	1,781		16,914		1,540
Other	16,790		14,827		9,478
Total noninterest expense	266,601		214,975		153,384
INCOME BEFORE INCOME TAX PROVISION	263,834		191,199		155,349
INCOME TAX PROVISION	124,389		77,452		63,091
NET INCOME	$	139,445	$	113,747	$	92,258
EARNINGS PER COMMON SHARE
Basic	$	1.03	$	1.10	$	1.16
Diluted	$	1.03	$	1.10	$	1.16

See accompanying notes to consolidated financial statements.

F-6

HOPE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015
	For Year Ended December 31,
	2017			2016			2015
	(Dollars in thousands)
Net income	$	139,445		$	113,747		$	92,258
Other comprehensive loss:
Change in unrealized losses on securities available for sale and interest only strips	(5,796		)	(21,273		)	(5,717		)
Reclassification adjustments for gains realized in net income	(301		)	(950		)	(424		)
Less tax effect	(2,570		)	(9,398		)	(2,604		)
Other comprehensive loss, net of tax	(3,527		)	(12,825		)	(3,537		)
Total comprehensive income	$	135,918		$	100,922		$	88,721

See accompanying notes to consolidated financial statements.

F-7

HOPE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015
	Common stock			Additional paid-in capital			Retained earnings			Accumulated other comprehensive income (loss), net			Total stockholders’ equity
	Shares	Amount
	(Dollars in thousands, except share data)
BALANCE, JANUARY 1, 2015	79,503,552	$	79	$	541,589		$	339,400		$	1,705		$	882,773
Issuance of additional shares pursuant to various   stock plans	56,235	1		(22		)							(21		)
Tax effects of stock plans				17									17
Stock-based compensation				1,046									1,046
Issuance of shares in exchange for Foster   common stock	6,569			116									116
Redemption of stock warrant				(1,150		)							(1,150		)
Cash dividends declared on common stock  ($0.42 per share)							(33,407		)				(33,407		)
Comprehensive income:
Net income							92,258						92,258
Other comprehensive loss										(3,537		)	(3,537		)
BALANCE, DECEMBER 31, 2015	79,566,356	$	80	$	541,596		$	398,251		$	(1,832	)	$	938,095
Issuance of additional shares pursuant to various   stock plans	179,997			1,171									1,171
Tax effect of stock plans				79									79
Stock-based compensation				1,391									1,391
Issuance of Hope stock options in exchange for Wilshire stock options				3,370									3,370
Issuance of shares in exchange for Wilshire   common stock	55,493,726	55		852,883									852,938
Cash dividends declared on common stock  ($0.45 per share)							(42,493		)				(42,493		)
Comprehensive income:
Net income							113,747						113,747
Other comprehensive loss										(12,825		)	(12,825		)
BALANCE, DECEMBER 31, 2016	135,240,079	$	135	$	1,400,490		$	469,505		(14,657		)	$	1,855,473
Issuance of additional shares pursuant to various   stock plans	271,812	1		1,864									1,865
Stock-based compensation				2,660									2,660
Cash dividends declared on common stock  ($0.50 per share)							(67,661		)				(67,661		)
Reclassification of stranded tax effects to retained   earnings - ASU 2018-02							3,597			(3,597		)	—
Comprehensive income:
Net income							139,445						139,445
Other comprehensive loss										(3,527		)	(3,527		)
BALANCE, DECEMBER 31, 2017	135,511,891	$	136	$	1,405,014		$	544,886		(21,781		)	$	1,928,255

See accompanying notes to consolidated financial statements.

F-8

HOPE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015
	Year ended December 31,
	2017			2016			2015
	(Dollars in thousands, except share data)
CASH FLOWS FROM OPERATING ACTIVITIES (net of acquisition)
Net income	$	139,445		$	113,747		$	92,258
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, amortization, and accretion	(14,903		)	(1,569		)	(4,530		)
Stock-based compensation expense	3,161			2,967			1,046
Provision for loan losses	17,360			9,000			8,000
(Credit) provision for unfunded loan commitments	(2,358		)	179			381
Valuation adjustment of premises held for sale	1,084			—			—
Valuation adjustment of OREO	2,041			2,228			1,267
Impairment of investments in affordable housing partnership	4,846			—			—
Net gains on sales of SBA and other loans	(15,701		)	(11,670		)	(12,935		)
Earnings on BOLI	(1,219		)	(1,438		)	(1,091		)
Net change in fair value of derivatives	78			443			—
Net (gains) losses on sale and disposal of premises and equipment	(868		)	176			64
Net (gains) losses on sales of OREO	(79		)	16			(1,147		)
Net gains on sales or called securities available for sale	(301		)	(950		)	(424		)
Losses on investments in affordable housing partnership	10,266			4,100			1,442
Net change in deferred income taxes	34,740			5,750			(1,376		)
Proceeds from sales of loans held for sale	310,345			239,203			171,229
Originations of loans held for sale	(276,537		)	(219,779		)	(140,466		)
Origination of servicing assets	(5,492		)	(4,472		)	(4,900		)
Change in accrued interest receivable	(3,099		)	(2,459		)	(1,561		)
Change in other assets	(1,987		)	16,418			(4,237		)
Change in accrued interest payable	5,098			2,247			152
Change in other liabilities	(1,999		)	(23,532		)	4,920
Net cash provided by operating activities	203,921			130,605			108,092
CASH FLOWS FROM INVESTING ACTIVITIES (net of acquisition)
Net cash received from acquisition - Wilshire Bancorp, Inc.	—			100,127			—
Purchase of interest bearing deposits in other financial institutions and other investments	(30,477		)	(2,962		)	(44,001		)
Proceeds from maturity of interest bearing deposits in other financial institutions and other investments	21,313			13,465			490
Purchase of securities available for sale	(572,528		)	(553,336		)	(397,885		)
Proceeds from matured, called, or paid-down securities available for sale	264,730			238,605			146,407
Proceeds from sales of securities available for sale	128,791			217,079			22,510
Proceeds from sales of other loans	417			634			2,893
Net change in loans receivable	(564,536		)	(487,961		)	(673,899		)
Proceeds from sales of OREO	14,802			17,390			11,309
Purchase of FHLB stock	(8,573		)	(97		)	(150		)
Redemption of FHLB stock	761			13,636			9,510
Purchase of premises and equipment	(14,777		)	(14,320		)	(10,924		)
Proceeds from sales of premises and equipment	5,084			—			7
Investments in affordable housing partnerships	(12,342		)	(5,616		)	(1,261		)
Net cash used in investing activities	(767,335		)	(463,356		)	(934,994		)

F-9

HOPE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015
	Year ended December 31,
	2017			2016			2015
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	209,477			494,549			647,710
Proceeds from FHLB advances	1,420,000			825,000			350,000
Repayment of FHLB advances and prepayment fees	(1,015,000		)	(806,610		)	(300,000		)
Proceeds from federal funds purchased	69,900			—			—
Cash dividends paid on common stock	(67,661		)	(42,493		)	(33,407		)
Issuance of additional stock pursuant to various stock plans	1,865			1,171			(22		)
Tax effects of issuance of shares from various stock plans	—			79			—
Taxes paid in net settlement of restricted stock	(501		)	—			—
Redemption of common stock warrant	—			—			(1,150		)
Net cash provided by financing activities	618,080			471,696			663,131
NET CHANGE IN CASH AND CASH EQUIVALENTS	54,666			138,945			(163,771		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	437,334			298,389			462,160
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	492,000		$	437,334		$	298,389
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	$	91,081		$	62,624		$	40,466
Income taxes paid	$	104,158		$	65,726		$	61,568
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES
Transfer from loans receivable to OREO	$	7,173		$	5,646		$	11,373
Loans transferred to held for sale from loans receivable	$	429		$	11,885		$	685
Loans transferred to loans receivable from held for sale	$	4,100		$	9,163		$	—
Transfer from premises and equipment to premises held for sale	$	3,300		$	—		$	—
Loans to facilitate sale of premises	$	1,350		$	—		$	—
Loans to facilitate sale of OREO	$	2,300		$	—		$	—
New commitments to fund affordable housing partnership investments	$	26,400		$	1,327		$	14,794
Assets acquired from Wilshire	$	—		$	4,627,604		$	—
Liabilities assumed from Wilshire	$	—		$	4,130,342		$	—
Common stock issued in consideration for Wilshire	—			55,493,726			—

See accompanying notes to consolidated financial statements.

F-10

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations— Hope Bancorp, Inc. (“Hope Bancorp” on a parent-only basis and the “Company” on a consolidated basis, previously known as BBCN Bancorp, Inc.), headquartered in Los Angeles, California, is the holding company for Bank of Hope (the “Bank,” previously known as BBCN Bank). The Bank has branches in California, Washington, Texas, Illinois, Alabama, Georgia, Virginia, New Jersey, and New York, as well as loan production offices in Atlanta, Dallas, Denver, Portland, Seattle, Newport Beach, Laguna Niguel, and Northern California. Hope Bancorp is a corporation organized under the laws of the state of Delaware and a bank holding company registered under the Bank Holding Company Act of 1956, as amended. The Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. The Company specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing.

Principles of Consolidation—The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and conform to practices within the banking industry. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, principally the Bank. Intercompany transactions and balances are eliminated in consolidation.

Cash Flows—Cash and cash equivalents include cash and due from banks, interest-earning deposits, federal funds sold and term federal funds sold, which have original maturities less than 90 days. The Company may be required to maintain reserve and clearing balances with the Federal Reserve Bank under the Federal Reserve Act. The reserve and clearing requirement balance was $0 at December 31, 2017 and 2016. Net cash flows are reported for customer loan and deposit transactions, federal funds purchased, deferred income taxes, and other assets and liabilities.

Interest-Bearing Deposits in Other Financial Institutions and Other Investments—Interest-bearing deposits in other financial institutions and other investments are comprised of the Company’s investments in certificates of deposits that have original maturities greater than 90 days. Other investments are also comprised of the Company’s investment in funds to partially satisfy the Company’s requirements under the Community Reinvestment Act. The funds do not have a readily determinable fair value as of the balance sheet date.

Securities—Securities are classified and accounted for as follows:

(i) Securities that the Company has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and reported at amortized cost. At December 31, 2017 and 2016, the Company did not own securities in this category;

(ii) Securities are classified as “available-for-sale” when they might be sold before maturity and are reported at fair value. Unrealized holding gains and losses are reported as a separate component of stockholders’ equity in accumulated other comprehensive income (loss), net of taxes.

Accreted discounts and amortized premiums on securities are included in interest income using the interest method, and realized gains or losses related to sales of securities recorded on trade date and are calculated using the specific identification method, without anticipating prepayments, except for mortgage-backed securities where prepayments are expected.

Management evaluates securities for other than temporary impairment (“OTTI”) at least on a quarterly basis and more frequently when economic conditions warrant such evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings.

F-11

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Derivative Financial Instruments and Hedging Transactions—As part of the Company’s asset and liability management strategy, the Company may enter into derivative financial instruments, such as interest rate swaps, and caps and floors, with the overall goal of minimizing the impact of interest rate fluctuations on net interest margin. The Company’s interest rate swaps and caps involve the exchange of fixed rate and variable rate interest payment obligations without the exchange of the underlying notional amounts and are therefore accounted for as stand-alone derivatives. Changes in the fair value of the stand-alone derivatives are reported in earnings as noninterest income. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors, are both considered derivatives. The Company accounts for loan commitments related to the origination of mortgage loans that will be held-for-sale as derivatives at fair value on the balance sheet, with changes in fair value recorded in earnings. As part of the Company’s overall risk management, the Company’s Asset Liability Committee, which meets monthly, monitors and measures interest rate risk and the sensitivity of assets and liabilities to interest rate changes, including the impact of derivative transactions.

Loans Held for Sale—Small Business Administration (“SBA”) and residential mortgage loans that the Company has the intent to sell prior to maturity have been designated as held for sale at origination and are recorded at the lower of cost or fair value, on an aggregate basis. A valuation allowance is established if the aggregate fair value of such loans is lower than their cost and charged to earnings. Gains or losses recognized upon the sale of loans are determined on a specific identification basis. Loan transfers are accounted for as sales when control over the loan has been surrendered. Control over such loans is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain control over the transferred assets through an agreement to repurchase them before their maturity.

Loans—Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of any purchase discounts, unearned interest, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Nonrefundable loan origination fees and certain direct origination costs are deferred and recognized in interest income using the level-yield method over the life of the loan. Interest on loans is credited to income as earned and is accrued only if deemed collectible.

Generally, loans are placed on nonaccrual status and the accrual of interest is discontinued if principal or interest payments become 90 days past due and/or management deems the collectibility of the principal and/or interest to be in question. Loans to a customer whose financial condition has deteriorated are considered for nonaccrual status whether or not the loan is 90 days or more past due. Generally, payments received on nonaccrual loans are recorded as principal reductions. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Other loan fees and charges, representing service costs for the prepayment of loans, for delinquent payments or for miscellaneous loan services, are recorded as income when collected.

Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes all loans with the exception of homogeneous loans, or loans that are evaluated together in pools of similar loans (i.e., home mortgage loans, home equity lines of credit, overdraft loans, express business loans, and automobile loans). This analysis is performed at least on a quarterly basis. The Company uses the following definitions for risk ratings:

• Pass: Loans that meet a preponderance or more of the Company’s underwriting criteria and evidence an acceptable level of risk.

• Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

• Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

• Doubtful/Loss: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

F-12

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Allowance for Loan Losses—The allowance for loan losses is a valuation allowance for probable incurred credit losses that are inherent in the loan portfolio. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off.

The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors.

The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment. The Company further segregates these segments between loans accounted for under the amortized cost method (referred to as “Legacy Loans”) and acquired loans (referred to as “Acquired Loans”), as Acquired Loans were originally recorded at fair value with no carryover of the related allowance for loan losses.

The historical loss experience for Legacy Loans is based on the actual loss history experienced by the Company. The loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations.

The following major portfolio segments have been identified: real estate loans (residential, commercial, and construction), commercial business loans, trade finance loans, and consumer/other loans. Due to the overall high level of real estate loans within the loan portfolio as a whole, as compared to other portfolio segments, for risk assessment and allowance purposes this segment was segregated into more granular pools by collateral property type.

Our real estate loan portfolio is subject to certain risks, including: a decline in the economies of our primary markets, interest rate increases, a reduction in real estate values in our primary markets, increased competition in pricing and loan structure, and environmental risks, including natural disasters. Our commercial business and trade finance loan portfolio are subject to certain risks, including: a decline in the economy in our primary markets, interest rate increases, and deterioration of a borrower’s or guarantor’s financial capabilities. Our consumer loan portfolio is subject to the same risk associated with our commercial business loan portfolio but also includes risk related to consumer bankruptcy laws which allow consumers to discharge certain debts.

The Company uses a loan migration analysis which is a formula methodology based on the Bank’s actual historical net charge off experience for each loan class (type) pool and risk grade. The migration analysis is centered on the Bank’s internal credit risk rating system. The Company’s internal loan review and external contracted credit review examinations are used to determine and validate loan risk grades. This credit review system takes into consideration factors such as: borrower’s background and experience; historical and current financial condition; credit history and payment performance; economic conditions and their impact on various industries; type, fair value and volatility of the fair value of collateral; lien position; and the financial strength of any guarantors.

A general loan loss allowance is provided on loans not specifically identified as impaired (“non-impaired loans”). The Bank’s general loan loss allowance has two components: quantitative and qualitative risk factors. The quantitative risk factors are based on a historical loss migration methodology. The loans are classified by class and risk grade and the historical loss migration is tracked for the various classes. Loss experience is quantified for a specified period and then weighted to place more significance to the most recent loss history. That loss experience is then applied to the stratified portfolio at each quarter end.

Additionally, in order to systematically quantify the credit risk impact of other trends and changes within the loan portfolio, the Bank utilizes qualitative adjustments to the Migration Analysis within established parameters. The parameters for making adjustments are established under a Credit Risk Matrix that provides seven possible scenarios for each of the factors below. The matrix allows for up to three positive (major, moderate, and minor), three negative (major, moderate, and minor), and one neutral credit risk scenarios within each factor for each loan type pool. Generally, the factors are considered to have no significant impact (neutral) to our historical migration ratios. However, if information exists to warrant adjustment to the Migration Analysis, changes are made in accordance with the established parameters supported by narrative and/or statistical analysis. The Credit Risk Matrix and the nine possible scenarios enable the Bank to qualitatively adjust the Loss Migration Ratio by as much as 50 basis points in either direction (positive or negative) for each loan type pool. This matrix considers the following nine factors, which are patterned after the guidelines provided under the FFIEC Interagency Policy Statement on the Allowance for Loan and Lease Losses:

• Changes in lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

• Changes in national and local economic and business conditions and developments, including the condition of various market segments.

• Changes in the nature and volume of the loan portfolio.

• Changes in the experience, ability and depth of lending management and staff.

• Changes in the trends of the volume and severity of past due loans, Classified Loans, nonaccrual loans, troubled debt restructurings and other loan modifications.

• Changes in the quality of our loan review system and the degree of oversight by the Directors.

• Changes in the value of underlying collateral for collateral-dependent loans.

• The existence and effect of any concentrations of credit and changes in the level of such concentrations.

• The effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated losses in the Company’s loan portfolio.

The Company also establishes specific loss allowances for loans where we have identified potential credit risk conditions or circumstances related to a specific individual credit. The specific allowance amounts are determined by a method prescribed by ASC 310-10-35-22, Measurement of Impairment. The loans identified as impaired will be accounted for in accordance with one of the three acceptable valuation methods: 1) the present value of future cash flows discounted at the loan’s effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral, if the loan is collateral dependent. For the collateral dependent impaired loans, the Company obtains a new appraisal to determine the amount of impairment as of the date that the loan became impaired. The appraisals are based on an “as is” valuation. To ensure that appraised values remain current, the Company either obtains updated appraisals every twelve months from a qualified independent appraiser or an internal re-valuation of the collateral is performed by qualified personnel. If the fair value of the collateral, less cost to sell, is less than the recorded amount of the loan, the Company then recognizes impairment by creating or adjusting an existing valuation allowance with a corresponding charge to the provision for loan losses. If an impaired loan is expected to be collected through liquidation of the underlying collateral, the loan is deemed to be collateral dependent and the amount of impairment is charged off against the allowance for loan losses.

The Bank considers a loan to be impaired when it is probable that not all amounts due (principal and interest) will be collectible in accordance with the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The significance of payment delays and payment shortfalls is determined on a case-by-case basis by taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed.

For commercial business loans, real estate loans and certain consumer loans, the Company bases the measurement of loan impairment on the present value of the expected future cash flows, discounted at the loan’s effective interest rate or on the fair value of the loan’s collateral, less estimated costs to sell, if the loan is collateral dependent. Management evaluates most consumer loans for impairment on a collective basis because these loans generally have smaller balances and are homogeneous in the underwriting of terms and conditions and in the type of collateral.

Impairment losses are included in the allowance for loan losses through a charge to the provision for loan losses. Upon disposition of an impaired loan, any unpaid balance is charged off to the allowance for loan losses.

The allowance for loan losses for acquired credit impaired loans is based upon expected cash flows for these loans. To the extent that a deterioration in borrower credit quality results in a decrease in expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on management’s estimate of future credit losses over the remaining life of the loans.

Acquired Loans—Loans that the Company acquires are recorded at fair value with no carryover of the related allowance for loan losses. On the date of acquisition, the Company considers acquired classified loans credit impaired loans (“Purchased Credit Impaired Loans” or “PCI loans”) under the provisions of Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. On the date of acquisition, loans without credit impairment (“Acquired Performing Loans” or “Non-PCI loans”) are not accounted for under ASC 310-30. Acquired loans are placed in pools with similar risk characteristics and recorded at fair value as of the acquisition date.

For PCI loans, the cash flows expected to be received over the life of the pools were estimated by management with the assistance of a third party valuation specialist. These cash flows were utilized in calculating the carrying values of the pools and

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HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

underlying loans, book yields, effective interest income and impairment, if any, based on actual and projected events. Default rates, loss severity and prepayment speed assumptions are periodically reassessed and updated within the accounting model to update the expectation of future cash flows. The excess of the cash expected to be collected over the pools’ carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the loan or pool using the effective interest yield method. The accretable yield may change due to changes in the timing and amounts of expected cash flows. Changes in the accretable yield is disclosed quarterly.

For PCI loans, the excess of the contractual balances due over the cash flows expected to be collected is considered to be nonaccretable difference. The nonaccretable difference represents our estimate of the credit losses expected to occur and was considered in determining the fair value of the loans as of the date of acquisition. Subsequent to the date of acquisition, any increases in expected cash flows over those expected at purchase date in excess of fair value are adjusted through the accretable difference on a prospective basis. Any subsequent decreases in expected cash flows over those expected at the acquisition date are recognized by recording a provision for loan losses that will maintain the original expected yield.

PCI loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if management can reasonably estimate the timing and amount of the expected cash flows on such loans and if management expects to fully collect the new carrying value of the loans. As such, management may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. Management has determined that future cash flows are reasonably estimable on any such acquired loans that are past due 90 days or more and accruing interest. Management expects to fully collect the carrying value of the loans.

OREO—OREO, which represents real estate acquired through foreclosure in satisfaction of commercial and real estate loans, is stated at fair value less estimated selling costs of the real estate. Loan balances in excess of the fair value of the real estate acquired at the date of acquisition are charged to the allowance for loan losses. Any subsequent operating expenses or income, reduction in estimated fair values, and gains or losses on disposition of such properties are charged or credited to current operations. For the year ended December 31, 2017, the Company foreclosed on properties with an aggregate carrying value of $7.2 million. The Company recorded $3.7 million in net valuation adjustments subsequent to the foreclosures, and the Company sold OREO properties for total proceeds of $14.8 million.

FHLB Stock—The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Premises and Equipment—Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of premises and equipment are computed on the straight-line method over the following estimated useful lives:

Buildings	15	-	39	years
Furniture, fixture, and equipment	3	-	10	years
Computer equipment	1	-	5	years
Computer software	1	-	5	years
Leasehold improvement	life of lease or improvements, whichever is shorter

Mortgage Banking Derivatives — Mortgage banking derivatives are instruments used to hedge the risk to residential mortgage loans sales from changes in interest rates. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors, are both considered derivatives. The Company accounts for loan commitments related to the origination of mortgage loans that will be held-for-sale as derivatives at fair value on the balance sheet, with changes in fair value recorded in earnings. Commitments to originate mortgage loans that will be held for investment are not accounted for as derivatives and therefore are not recorded at fair value. Subsequent changes in the fair value of a derivative loan commitments are recognized in earnings in the period in which the changes occur.

BOLI—The Company has purchased life insurance policies on certain key executives and directors. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Investments in Affordable Housing Partnerships—The Company owns limited partnerships interest in projects of affordable housing for lower income tenants.  Under the equity method of accounting, the annual amortization is based on the estimated tax

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

deduction amounts the bank would receive in the year. The carrying value of such investments and commitments to fund investment in affordable housing is recorded as “Investment in affordable housing partnerships” in the Consolidated Statement of Financial Condition. Commitment to fund investments in affordable housing is also included in this line items but is also grossed up and recorded as a liability. The Company recorded an impairment on investments in affordable housing partnerships totaling $4.8 million for the year ended December 31, 2017 to account for the variance between the carrying value of individual investments and the future expected tax benefits. Of the $4.8 million impairment recorded in 2017, $3.2 million was recorded in noninterest expense to reflect the impairment for the year ended December 31, 2017 and $1.6 million was recorded in income tax provision expenses as the re-evaluation was a direct result of the Tax Act which reduced corporate tax rates from 35% to 21%.

Goodwill and Intangible Assets—Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually.

In accordance with ASC 350 “Intangibles - Goodwill and Other”, the Company makes a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If management concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the two-step impairment test is bypassed. Management assessed the qualitative factors related to goodwill as of December 31, 2017. Goodwill is also tested for impairment on an interim basis if circumstances change or an event occurs between annual tests that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions and selecting an appropriate control premium. The selection and weighting of the various fair value techniques may result in a higher or lower fair value. Judgment is applied in determining the weighting that is most representative of fair value.

Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangibles are amortized over a seven to ten year period.

Loan Servicing Assets—The Company typically sells the guaranteed portion of SBA loans and retains the unguaranteed portion (“retained interest”). A portion of the premium on sale of SBA loans is recognized as gain on sale of loans at the time of the sale by allocating the carrying amount between the asset sold and the retained interest, including these servicing assets, based on their relative fair values. The remaining portion of the premium is recorded as a discount on the retained interest and is amortized over the remaining life of the loan as an adjustment to yield. The retained interest, net of any discount, are included in loans receivable—net of allowance for loan losses in the accompanying consolidated statements of financial condition.

Servicing assets are recognized when SBA and residential mortgage loans are sold with servicing retained with the income statement effect recorded in gains on sales of loans. Servicing assets are initially recorded at fair value based on the present value of the contractually specified servicing fee, net of servicing costs, over the estimated life of the loan, using a discount rate. The Company’s servicing costs approximates the industry average servicing costs of 40 basis points. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Management periodically evaluates servicing assets for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. No impairment charges were required in 2017, 2016, or 2015.

Stock-Based Compensation—Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Income Taxes—Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred income tax assets and liabilities represent the tax effects, based on current tax law, of future deductible or taxable amounts attributable to events that have been recognized in the financial statements. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, the projected future taxable income and tax planning strategies in making this assessment. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and / or penalties related to income tax matters in income tax expense.

Section 382 of the Internal Revenue Code imposes a limitation (“382 Limitation”) on a corporation’s ability to use any net unrealized built in losses and other tax attributes, such as net operating loss and tax credit carryforwards, when it undergoes a 50% ownership change over a designated testing period not to exceed three years (“382 Ownership Change”). As a result of the acquisition on July 29, 2016, Wilshire Bancorp underwent a 382 Ownership Change resulting in a 382 Limitation to its net operating loss and tax credit carryforwards. Wilshire Bancorp did not have a net unrealized built in loss as of the 382 Ownership Change date. Given the applicable 382 Limitation, the Company is expected to fully utilize Wilshire Bancorp’s net operating loss and tax credit carryforwards before expiration. However, future transactions, such as issuances of common stock or sales of shares of the Company’s stock by certain holders of our shares, including persons who have held, currently hold or may accumulate in the future 5% or more of our outstanding common stock for their own account, could trigger a future Section 382 Ownership Change of the Company which could limit the Company’s use of these tax attributes.

Earnings per Common Share—Basic Earnings per Common Share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted Earnings per Common Share reflects the potential dilution of common shares that could share in the earnings of the Company. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements.

Equity—The Company accrues for common stock dividends as declared. Common stock dividends of $67.7 million and $42.5 million, were paid in 2017 and 2016, respectively. There were no common stock dividends declared but unpaid at December 31, 2017 and 2016.

Dividend Restrictions—Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company, or dividends paid by the Company to stockholders.

Comprehensive Income—Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes the change in unrealized gains and losses on securities available for sale and interest-only strips which are also recognized as separate components of stockholders’ equity, net of tax.

Operating Segments—The Company is managed as a single business segment. The financial performance of the Company is reviewed by the chief operating decision maker on an aggregate basis and financial and strategic decisions are made based on the Company as a whole. We consider “Banking Operations” to be our single combined operating segment, which raises funds from deposits and borrowings for loans and investments, and provides lending products, including construction, real estate, commercial, and consumer loans to its customers.    

Loss Contingencies—Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management believes there are no such matters that would have a material effect on the consolidated financial statements as of December 31, 2017 or 2016. Accrued loss contingencies for all legal claims totaled approximately $414 thousand at December 31, 2017 and $557 thousand at December 31, 2016.

Loan Commitments and Related Financial Instruments—Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. See Note 13 Commitments and Contingencies of the Notes to Consolidated Financial Statements for further discussion.

Allowance for Unfunded Commitments—The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to these unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. The allowance for unfunded commitments is included in other liabilities on the consolidated statement of financial condition, with changes to the balance charged against noninterest expense.

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HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Fair Values of Financial Instruments—Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Impairment of Long-Lived Assets—The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated future cash flows (undiscounted) over the remaining useful life of the asset are less than the carrying value, an impairment loss would be recorded to reduce the related asset to its estimated fair value.

Transfer of Financial Assets—Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Use of Estimates in the Preparation of Consolidated Financial Statements—The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

Reclassifications - Some items in the prior year financial statements were reclassified to conform to the current presentation. The reclassifications had no effect on the prior year net income or stockholders’ equity.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Accounting Pronouncements Adopted

ASU 2016-09 “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” was issued as a part of the FASB’s simplification initiative, and intends to improve the accounting for share-based payment transactions. The ASU changes several aspects of the accounting for share-based payment award transactions, including accounting for excess tax benefits and deficiencies, income statement recognition, cash flow classification, forfeitures, and tax withholding requirements. The Company adopted ASU 2016-09 in the first quarter of 2017. As of result of the adoption of ASU 2016-09, the Company recognizes excess tax benefits on share-based payment awards in income tax provision on the Consolidated Statement of Income rather than in additional paid-in capital on the Consolidated Statement of Changes in Stockholders’ Equity. The Company recorded $118 thousand of income tax benefits for the year ended December 31, 2017 related to excess tax benefits from share-based payment awards.

In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220), “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. ASU 2018-02 was issued to allow the reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effect resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017. The Tax Cuts and Jobs Act among other things reduced the corporate tax rate from 35% to 21% which required the re-evaluation of any deferred tax assets or liabilities at the lowered tax rate which potentially could leave disproportionate tax effects in accumulated other comprehensive income. ASU 2018-02 allows for the election to reclassify these stranded tax effects to retained earnings. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for public business entities for reporting periods for which financial statements have not yet been issued. The Company has chosen to early adopt ASU 2018-02 and has elected to reclassify its stranded tax effect totaling $3.6 million in accumulated other comprehensive income that resulted from the change in tax rates to retained earnings for the year ended December 31, 2017.

Recently Issued Accounting Pronouncements Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” and in May 2016, FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” Both updates which supersedes the revenue recognition requirements in Topic 606, Revenue Recognition. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 as amended by ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, is effective for interim and annual periods beginning after December 15, 2017 and is applied on either a modified retrospective or full retrospective basis. The Company has elected to adopt the modified retrospective approach and will apply the guidance to the most current period presented in the financial statements for the first quarter of 2018.

The Company’s revenue primarily consists of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income, as well as other revenues from financial instruments such as loans, leases, securities and derivatives. The Company’s material revenue streams that will be in scope of Topic 606 are service fees on deposit accounts (including interchange fees), asset management fees, certain OREO gains (losses), and international fees. All other revenue streams are either immaterial, or are in the scope of other GAAP requirements which take precedence and therefore are not in the scope of Topic 606.

The largest in scope revenue source is the Company’s fees on deposit accounts. Based on the Company’s initial analysis, Topic 606 will not materially change the recognition of revenue on service fees on deposits accounts as the contracts are day to day and recognized as the service is provided. The Company is not the principal in terms of wealth management fees as it acts as an agent for another company who provides wealth management services on the Company’s behalf. As such, wealth management fees recognition will not change with the adoption of Topic 606. Gain or losses on the sale of OREO are generally accounted for under ASC 610. However, ASU 2014-09 also added new Subtopic 610-20 which addresses the recognition of gains and losses on the transfer of nonfinancial and in-substance nonfinancial assets. Gain and loss recognition is not expected to change except for OREO and other nonfinancial sales that are financed by the Company. In the case of financed sales, the Company will need to evaluate each contract to determine whether each contract criteria is met, including whether it is probable that it will collect substantially all of the consideration to which it will be entitled. The Company will also need to evaluate whether the financing terms offered to the buyer of the nonfinancial assets are market terms when determining the transaction price. As of the adoption date, there were no open sale contracts with a financing component. International fees are similar to service fees on deposits as the contracts are day to day and income is recognized as the service is provided and therefore Topic 606 is not expected to change the recognition of this line of revenue.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The adoption of ASU 2014-09 will not have a material impact on the Company’s consolidated financial statements. The way certain in scope revenue stream are assessed will change as the Company will need to apply the principles in the new standard using the following five steps; 1. Identify the contract(s) with a customer, 2. Identify the performance obligations in the contract, 3. Determine the transaction price, 4. Allocate the transaction price to the performance obligations in the contract, 5. Recognize revenue when (or as) the entity satisfies a performance obligation. However, actual recorded revenue is not expected to change materially with the adoption of the new revenue recognition standard. ASU 2014-09 will require additional disclosures including disclosures of revenue recognized from contracts with customers and impairment recorded on recognized on contracts with customer, revenue disaggregated by types of categories that are most relevant to the Company, the opening and closing balances of receivables, contract assets, and contract liabilities from contracts with customers, information about its performance obligations in contracts with customers, and judgments, and changes in the judgments, made in applying the new guidance.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The new guidance becomes effective for fiscal years beginning after December 15, 2017. The Company does not hold any equity investments in the available-for-sale portfolio that would require reclassification and re-measurement at the adoption date. The adoption of ASU 2016-01 is not expected to have a material impact to the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently in the process of evaluating the impact of the pending adoption of the new standard on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. ASU 2016-13 becomes effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the pending adoption of the new standard on its consolidated financial statements and is collaborating with a third party advisory team to develop a multi-year implementation plan and methodology in order for the Company to be compliant with ASU 2016-13 by the effective date. The Company has established a CECL committee to oversee the development and implementation of ASU 2016-13. Based on the Company’s initial assessment of the ASU 2016-13, the Company’s expects the new guidance will result in additional required provision and allowance for loan losses which could have a material impact on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance on classification and presentation of certain cash receipts and cash payments on an institution’s statement of cash flows. The amendment aims to reduce the diversity in practice with respects to certain types of cash flows. ASU 2016-15 becomes effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. The adoption of ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, “Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment.” ASU 2017-04 will amend and simplify current goodwill impairment testing to eliminate Step 2 from the current provisions. Under the new guidance, an entity should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity still has the option to perform the quantitative assessment for a reporting unit to determine if a quantitative impairment test is necessary. ASU 2017-04 should be adopted for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the pending adoption of the new standard on its consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities”. ASU 2017-08 was issued to amend the amortization period for certain callable debt securities held at a premium. ASU 2017-08 shortens the amortization period of premiums on certain purchased

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

callable debt securities to the earliest call date. ASU 2017-08 affect all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date (that is, at a premium). ASU 2017-08 does not impact securities purchased at a discount, which continue to be amortized to maturity. ASU 2017-08 is effective for annual period beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted in an interim period. If an entity chooses to adopt early, any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. The adoption of ASU 2017-08 is not expected to have a material impact on the Company’s consolidated financial statements.

In November 2017, the FASB issued ASU 2017-14, Income Statement-Reporting Comprehensive Income (Topic 220), “Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403”. ASU 2017-14 was issued to supersede, amend, and add SEC paragraphs to the Codification to reflect the August 2017 issuance of SEC Staff Accounting Bulletin (SAB) 116 and SEC Release No. 33-10403. The SEC staff issued SAB 116 to align its revenue guidance with ASC 606, Revenue from Contracts with Customers. The SEC release says vaccine manufacturers should recognize revenue and provide the disclosures required by ASC 606 when the enumerated vaccines are placed into federal government stockpile programs. The amendments in the ASU have the same effective date and transition requirements as those for ASC 606; however, a registrant should continue referring to the applicable existing SEC guidance until it adopts ASC 606. ASU 2017-14 has the same effective date and transition requirements as ASU 2014-09 and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. For more information, see the Company’s disclosure of ASU 2014-09 above.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2. MERGERS AND ACQUISITIONS

Termination of Acquisition of U & I Financial Corp

On January 23, 2017, the Company announced the signing of a definitive agreement and plan of merger (the “U & I Merger Agreement”) with U & I Financial Corporation (“U & I”) pursuant to which U & I would have merged with and into Hope Bancorp with Hope Bancorp as the surviving corporation. As part of the merger, UniBank, a wholly-owned subsidiary of U & I, would have merged with and into the Bank.

Subsequently on September 15, 2017, the Company announced the mutual termination of the proposed merger with U & I as the Company was unable to obtain the required regulatory approval. The Mutual Termination Agreement provided, among other things, that each party will bear its own costs and expenses in connection with the terminated transaction, without penalties or termination fees. In connection with the termination, the parties have provided mutual releases from any claims of liability to one another relating to the merger transaction.

Merger with Wilshire Bancorp Inc.

On July 29, 2016, the merger of Wilshire Bancorp Inc. (“Wilshire”) and BBCN Bancorp, Inc. (now Hope Bancorp) was completed. On the same day BBCN changed its name to Hope Bancorp, Inc. and the subsidiary BBCN Bank was changed to Bank of Hope. The Company merged with Wilshire to create the only super regional Korean-American Bank in the United States and to expand our branch network nationwide. Pursuant to the merger agreement, holders of Wilshire common stock received 0.7034 of a share of common stock of HOPE for each share of Wilshire common stock held immediately prior to the effective time of the merger, rounded to the nearest whole share, plus cash in lieu of the issuance of fractional shares. Outstanding Wilshire stock options and restricted stock awards were converted into stock options with respect to shares of HOPE common stock or restricted shares of HOPE common stock, respectively, with appropriate adjustments to reflect the exchange ratio. The merger was accounted for using the acquisition method of accounting. Accordingly, the assets and liabilities of Wilshire were recorded at their respective fair values and represents management’s estimates based on available information.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The consideration paid, the assets acquired, and the liabilities assumed are summarized in the following table:

	July 29, 2016
	(Dollars in thousands)
Consideration Paid:
Hope common stock issued in exchange for Wilshire common stock	$	852,939
Cash paid for fractional shares	3
Hope stock options issued in exchange Wilshire stock options	3,370
Total consideration paid	$	856,312
Assets Acquired:
Cash and cash equivalents	$	100,127
Investment securities	478,938
Loans receivable	3,800,807
FRB and FHLB stock	16,539
OREO	13,173
Premises and equipment	16,812
BOLI	25,240
Servicing assets	16,203
Low income housing tax credit investments	47,111
Core deposit intangibles	18,138
Deferred tax assets, net	17,698
Other assets	76,818
Liabilities Assumed:
Deposits	(3,812,367		)
Borrowings	(206,282		)
Subordinated debentures	(56,942		)
Other liabilities	(54,751		)
Total identifiable net assets	$	497,262
Excess of consideration paid over fair value of net assets acquired (goodwill)	$	359,050

Fair values are primarily determined through the use of inputs that are not observable from market-based information. Under ASC 805-10-25-13, management may adjust the fair values of acquired assets or assumed liabilities for a period of up to one year from the date of the acquisition to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have an effect on the measurement of the amounts recognized as of that date. During the fourth quarter of 2016, the Company made a net adjustment of $1.4 million to the deferred tax assets and taxes receivable acquired from Wilshire which reduced the previous goodwill recorded from the transaction by $1.4 million. Subsequently in the first quarter of 2017, the

Company made an adjustment which increased goodwill by $978 thousand consisting of a $1.7 million adjustment to OREO partially offset by a $716 thousand adjustment to deferred tax assets. During the second quarter of 2017, the Company made an

adjustment of $475 thousand to deferred tax assets which increased goodwill by the same amount.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Acquired Loans

The fair value of loans were estimated on an individual basis based on the characteristics for each loan. A discounted cash flow analysis was used to project cash flows for each loan using assumptions for rate, remaining maturity, prepayment speeds, projected default probabilities, loss given defaults, and estimate of prevailing discount rates. The following table presents loans acquired from Wilshire with deteriorated credit quality as of the date of acquisition included as loans receivable in the table above:

	Fair Value At July 29, 2016
	(Dollars in thousands)
Contractually required principal and interest at acquisition	$	292,380
Contractual cash flows not expected to be collected (nonaccretable discount)	(8,002		)
Expected cash flows at acquisition	284,378
Interest component of expected cash flows (accretable discount)	(41,271		)
Fair value of acquired impaired loans	$	243,107

The carrying balance of the acquired loans from Wilshire included in the Statement of Financial Condition at December 31, 2017 was $2.60 billion compared to $3.59 billion at December 31, 2016.

Pro Forma Information

The following table presents financial information regarding the Wilshire’s operations included in the Consolidated Statement of Income from the date of acquisition through December 31, 2016. The table also presents unaudited pro forma information as if the merger had occurred on January 1, 2015. This pro forma information gives effect to certain adjustments, including purchase accounting fair value adjustments, amortization of core deposit and related income tax effects. Merger and integration expenses incurred of $25.7 million and $1.4 million for the years ended December 31, 2016 and 2015, respectively, were excluded. The pro forma information does not necessarily reflect the results of operations that would have occurred had the Company merged with Wilshire at the beginning of 2015. The pro forma combined condensed consolidated financial statements do not take into account the impact, if any, of an ownership change under Section 382 of the Code that would have occurred as of January 1, 2015. The merger is expected to result in annual cost savings to be achieved following the consummation of the merger. These expected savings have not been included in the pro forma combined amounts. These pro forma results require significant estimates and judgments particularly as it relates to the valuation and accretion of income associated with acquired loans.

	Actual from Acquisition Date Through December 31,		Pro forma Year Ended December 31,
	2016		2016		2015
	(Dollars in thousands)
Net interest income	$	197,953	$	456,556	$	449,501
Provision for loan losses	6,490		4,000		8,700
Non-interest income	29,546		75,266		89,345
Non-interest expense	120,954		235,013		255,401
Income tax provision	39,828		$	118,613	$	111,581
Net income	$	60,227	$	174,196	$	163,164
Pro forma earnings per share:
Basic			$	1.29	$	1.21
Diluted			$	1.29	$	1.21

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Acquisition-Related Expenses

The following table presents merger and integration expenses associated with the merger with Wilshire, the terminated merger with U & I, and other previous mergers and acquisitions which were reflected in the Consolidated Statements of Income in merger and integration expense. These expenses are comprised primarily of severance payments, professional services, and other noninterest expense related to prior mergers and acquisitions.

	Year ended December 31,
	2017		2016		2015
	(Dollars in thousands)
Wilshire	$	1,224	$	16,818	$	1,414
U & I	467		—		—
Other	90		96		126
Total merger and integration expenses	$	1,781	$	16,914	$	1,540

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HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3. SECURITIES AVAILABLE FOR SALE

The following is a summary of securities available-for-sale at December 31, 2017 and 2016:

	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in thousands)
Debt securities:
U.S. Government agency and U.S.   Government sponsored enterprises:
Collateralized mortgage obligations	$	856,193	$	58	$	(17,542	)	$	838,709
Mortgage-backed securities:
Residential	477,676		521		(6,983		)	471,214
Commercial	308,046		—		(6,681		)	301,365
Corporate securities	4,997		—		(522		)	4,475
Municipal securities	82,542		870		(875		)	82,537
Total debt securities	1,729,454		1,449		(32,603		)	1,698,300
Mutual funds	22,425		17		(485		)	21,957
Total	$	1,751,879	$	1,466	$	(33,088	)	$	1,720,257
	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in thousands)
Debt securities:
U.S. Government agency and U.S.   Government sponsored enterprises:
Agency securities	$	12,005	$	3	$	—		$	12,008
Collateralized mortgage obligations	715,981		349		(10,663		)	705,667
Mortgage-backed securities:
Residential	611,201		1,132		(9,381		)	602,952
Commercial	130,103		—		(5,014		)	125,089
Corporate securities	11,576		—		(449		)	11,127
Municipal securities	88,018		358		(1,537		)	86,839
Total debt securities	1,568,884		1,842		(27,044		)	1,543,682
Mutual funds	13,425		—		(367		)	13,058
Total	$	1,582,309	$	1,842	$	(27,411	)	$	1,556,740

As of December 31, 2017 and December 31, 2016, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The proceeds from sales of securities and total gains and losses are listed below:

	Year ended December 31,
	2017			2016			2015
	(Dollars in thousands)
Proceeds from investments sold	$	128,791		$	217,079		$	22,510
Gains from sales of securities	402			1,032			437
Losses from sales of securities	(101		)	(84		)	(13		)
Gains from called securities	—			2			—
Net gain on sales or called securities	$	301		$	950		$	424

The amortized cost and estimated fair value of securities at December 31, 2017, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	December 31, 2017
	Amortized Cost		Estimated Fair Value
	(Dollars in thousands)
Available for sale:
Due within one year	$	—	$	—
Due after one year through five years	11,541		11,729
Due after five years through ten years	33,106		33,581
Due after ten years	42,892		41,702
U.S. Government agency and U.S. Government sponsored enterprises
Collateralized mortgage obligations	856,193		838,709
Mortgage-backed securities:
Residential	477,676		471,214
Commercial	308,046		301,365
Mutual funds	22,425		21,957
Total	$	1,751,879	$	1,720,257

Securities with carrying values of approximately $359.2 million and $382.1 million at December 31, 2017 and December 31, 2016, respectively, were pledged to secure public deposits, various borrowings, and for other purposes as required or permitted by law.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Securities with gross unrealized losses, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated, are as follows:

	December 31, 2017
	Less than 12 months						12 months or longer						Total
Description of Securities	Number  of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number  of Securities	Fair Value		Gross Unrealized Losses
	(Dollars in thousands)
Collateralized mortgage obligations	38	$	425,198	$	(5,954	)	53	$	408,526	$	(11,588	)	91	$	833,724	$	(17,542	)
Mortgage-backed securities:
Residential	20	195,086		(1,282		)	23	230,616		(5,701		)	43	425,702		(6,983		)
Commercial	16	186,357		(1,614		)	8	115,008		(5,067		)	24	301,365		(6,681		)
Corporate securities	1	4,475		(522		)	—	—		—			1	4,475		(522		)
Municipal securities	18	9,295		(69		)	3	22,144		(806		)	21	31,439		(875		)
Mutual funds	1	8,899		(101		)	3	11,579		(384		)	4	20,478		(485		)
Total	94	$	829,310	$	(9,542	)	90	$	787,873	$	(23,546	)	184	$	1,617,183	$	(33,088	)

	December 31, 2016
	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
	(Dollars in thousands)
Collateralized mortgage obligations	66	$	615,803	$	(9,459	)	4	$	36,333	$	(1,204	)	70	$	652,136	$	(10,663	)
Mortgage-backed securities:
Residential	49	497,708		(9,381		)	—	—		—			49	497,708		(9,381		)
Commercial	8	125,089		(5,014		)	—	—		—			8	125,089		(5,014		)
Corporate securities	1	7,014		(2		)	1	4,113		(447		)	2	11,127		(449		)
Municipal securities	95	69,331		(1,537		)	—	—		—			95	69,331		(1,537		)
Mutual funds	3	13,058		(367		)	—	—		—			3	13,058		(367		)
Total	222	$	1,328,003	$	(25,760	)	5	$	40,446	$	(1,651	)	227	$	1,368,449	$	(27,411	)

The Company evaluates securities for OTTI on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and the extent to which the fair value of the securities has been less than our cost for the securities, and management’s intention to sell, or whether it is more likely than not that management will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, the Company considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.

The Company has certain collateralized mortgage obligations, mortgage-backed securities, municipal securities, and mutual funds that were in a continuous loss position for twelve months or longer as of December 31, 2017. Municipal securities in a continuous loss position for twelve months or longer had an unrealized losses of $806 thousand at December 31, 2017 with the last of the securities scheduled to mature in November 2046. These securities were rated investment grade and there were no credit quality concerns with the obligator. Mutual funds in a continuous loss position for twelve months or longer had an unrealized losses of $384 thousand, however there were no credit quality concerns with the fund. Collateralized mortgage obligations, residential and commercial mortgage-backed securities in a continuous loss position for twelve months or longer had an unrealized losses of $11.6 million, $5.7 million, and $5.1 million, respectively at December 31, 2017. These securities were investments in

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

U.S. Government agency and U.S. Government sponsored enterprises and have high credit ratings (“AA” grade or better). The interest on the securities that were in an unrealized loss position have been paid as agreed, and management believes this will continue in the future and that the securities will be paid in full as scheduled. The market value declines are deemed to be due to the current market volatility and are not reflective of management’s expectations of the Company’s ability to fully recover the investments, which may be at maturity. For these reasons, no OTTI was recognized on the securities that were in a continuous loss position for twelve months or longer at December 31, 2017.

The Company considers the losses on our investments in unrealized loss positions at December 31, 2017 to be temporary based on: 1) the likelihood of recovery; 2) the information relative to the extent and duration of the decline in market value; and 3) the Company’s intention not to sell, and management’s determination that it is more likely than not that the Company will not be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. The increase in the net unrealized loss position can be attributed to an increase in long term Treasury yields as a result of the increase in interest rates at December 31, 2017, compared to rates at December 31, 2016.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

4. LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES

The following is a summary of loans by major category at December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
Loan portfolio composition	(Dollars in thousands)
Real estate loans:
Residential	$	49,774		$	57,884
Commercial & industrial	8,142,036			7,842,573
Construction	316,412			254,113
Total real estate loans	8,508,222			8,154,570
Commercial business	1,780,869			1,832,021
Trade finance	166,664			154,928
Consumer and other	647,102			403,470
Total loans outstanding	11,102,857			10,544,989
Deferred loan fees, net	(282		)	(1,657		)
Gross loans receivable	11,102,575			10,543,332
Allowance for loan losses	(84,541		)	(79,343		)
Loans receivable, net	$	11,018,034		$	10,463,989

Our loan portfolio is made up of four segments: real estate loans, commercial business, trade finance and consumer and other loans. These segments are further segregated between loans accounted for under the amortized cost method ("Legacy Loans") and acquired loans that were originally recorded at fair value with no carryover of the related pre-acquisition allowance for loan losses ("Acquired Loans"). The Acquired Loans are further segregated between Purchased Credit Impaired Loans (loans with credit deterioration on the acquisition date and accounted for under ASC 310-30, or "PCI loans") and Acquired Performing Loans (loans that were pass graded on the acquisition date and the fair value adjustment is amortized over the contractual life under ASC 310-20, or "non-PCI loans").

The following table presents changes in the accretable discount on the PCI loans for the years ended December 31, 2017 and 2016:

	Year ended December 31,
	2017			2016
	(Dollars in thousands)
Balance at beginning of period	$	43,611		$	23,777
Additions due to mergers and acquisitions	—			41,271
Accretion	(21,542		)	(15,817		)
Increase (decrease) in expected cash flows	32,933			(5,620		)
Balance at end of period	$	55,002		$	43,611

On the acquisition date, the amount by which the undiscounted expected cash flows exceed the estimated fair value of the PCI loans is the accretable yield. The accretable yield is then measured at each financial reporting date and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. The accretable yield may change from period to period due to the following: 1) estimates of the remaining life of acquired loans will affect the amount of future interest income, 2) indices for variable rates of interest on PCI loans may change; and 3) estimates of the amount of the contractual principal and interest that will not be collected (nonaccretable difference) may change.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following tables detail the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2017 and 2016:

	Legacy												Acquired											Total
	Real Estate			Commercial Business			Trade Finance			Consumer and Other			Real Estate			Commercial Business			Trade Finance		Consumer and Other
	(Dollars in thousands)
December 31, 2017
Balance, beginning of period	$	38,956		$	23,430		$	1,897		$	2,116		$	12,791		$	117		$	—	$	36		$	79,343
Provision (credit) for loan losses	8,524			(1,036		)	1,825			2,207			1,341			4,500			42		(43		)	17,360
Loans charged off	(2,292		)	(9,881		)	(2,104		)	(943		)	(850		)	(1,315		)	—		(25		)	(17,410		)
Recoveries of charge offs	172			4,715			56			5			40			225			—		35			5,248
Balance, end of period	$	45,360		$	17,228		$	1,674		$	3,385		$	13,322		$	3,527		$	42	$	3		$	84,541
December 31, 2016
Balance, beginning of period	$	42,829		$	16,332		$	3,592		$	556		$	12,823		$	214		$	—	$	62		$	76,408
Provision (credit) for loan losses	(4,896		)	12,928			(1,695		)	2,229			714			(248		)	—		(32		)	9,000
Loans charged off	(152		)	(7,267		)	—			(757		)	(758		)	(26		)	—		—			(8,960		)
Recoveries of charge offs	1,175			1,437			—			88			12			177			—		6			2,895
Balance, end of period	$	38,956		$	23,430		$	1,897		$	2,116		$	12,791		$	117		$	—	$	36		$	79,343
December 31, 2015
Balance, beginning of period	$	38,775		$	15,986		$	3,456		$	427		$	8,573		$	485		$	—	$	56		$	67,758
Provision (credit) for loan losses	2,828			(577		)	1,424			177			4,270			(117		)	—		(5		)	8,000
Loans charged off	(558		)	(1,971		)	(1,288		)	(630		)	(183		)	(271		)	—		(11		)	(4,912		)
Recoveries of charged offs	1,784			2,894			—			582			163			117			—		22			5,562
Balance, end of period	$	42,829		$	16,332		$	3,592		$	556		$	12,823		$	214		$	—	$	62		$	76,408

The following tables disaggregate the allowance for loan losses and the carrying value of loans receivables by impairment methodology at December 31, 2017 and December 31, 2016:

	December 31, 2017
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	1,378	$	2,807	$	3	$	35	$	246	$	854	$	—	$	—	$	5,323
Collectively evaluated for impairment	43,982		14,421		1,671		3,350		1,036		2,673		42		3		67,178
PCI loans	—		—		—		—		12,040		—		—		—		12,040
Total	$	45,360	$	17,228	$	1,674	$	3,385	$	13,322	$	3,527	$	42	$	3	$	84,541
Loans outstanding:
Individually evaluated for impairment	$	41,041	$	31,322	$	3,951	$	908	$	14,239	$	18,733	$	2,984	$	1,171	$	114,349
Collectively evaluated for impairment	6,172,448		1,459,273		152,204		477,375		2,120,001		244,980		7,525		157,794		10,791,600
PCI loans	—		—		—		—		160,493		26,561		—		9,854		196,908
Total	$	6,213,489	$	1,490,595	$	156,155	$	478,283	$	2,294,733	$	290,274	$	10,509	$	168,819	$	11,102,857

F-31

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	December 31, 2016
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	1,889	$	4,420	$	864	$	50	$	113	$	73	$	—	$	—	$	7,409
Collectively evaluated for impairment	37,067		19,010		1,033		2,066		548		44		—		36		59,804
PCI loans	—		—		—		—		12,130		—		—		—		12,130
Total	$	38,956	$	23,430	$	1,897	$	2,116	$	12,791	$	117	$	—	$	36	$	79,343
Loans outstanding:
Individually evaluated for impairment	$	74,085	$	34,783	$	6,029	$	733	$	23,865	$	435	$	—	$	431	$	140,361
Collectively evaluated for impairment	5,271,262		1,079,348		75,365		179,961		2,597,200		650,710		70,535		206,802		10,131,183
PCI loans	—		—		—		—		188,158		66,745		2,999		15,543		273,445
Total	$	5,345,347	$	1,114,131	$	81,394	$	180,694	$	2,809,223	$	717,890	$	73,534	$	222,776	$	10,544,989

As of December 31, 2017 and December 31, 2016, the allowance for unfunded commitments was $836 thousand and $3.2 million, respectively. For the year ended December 31, 2017 and 2016, the recognized (credit) provision for credit losses related to unfunded commitments was $(2.4) million and $179 thousand.

The recorded investment in individually impaired loans was as follows:

	December 31, 2017			December 31, 2016
	(Dollars in thousands)
With allocated allowance:
Without charge-off	$	28,614		$	59,638
With charge-off	3,044			1,120
With no allocated allowance:
Without charge-off	77,533			76,775
With charge-off	5,158			2,828
Allowance on impaired loans	(5,323		)	(7,409		)
Impaired loans, net of allowance	$	109,026		$	132,952

F-32

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following tables detail impaired loans (Total Impaired Loans including Legacy and Acquired and Acquired only) by portfolio segment. Loans with no related allowance for loan losses are believed by management to have adequate collateral securing their carrying value. The Company did not recognize any cash basis interest income for the years ended December 31, 2017 or 2016.

	December 31, 2017						Year Ended December 31, 2017
Total Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	532		531		131		1,120		—
Hotel & Motel	2,931		5,090		284		4,050		67
Gas Station & Car Wash	—		—		—		43		—
Mixed Use	312		958		4		245		6
Industrial & Warehouse	772		1,482		96		1,135		—
Other	4,397		4,401		1,109		11,707		237
Real Estate—Construction	—		—		—		—		—
Commercial Business	18,330		22,757		3,661		23,695		631
Trade Finance	3,861		3,861		3		2,842		217
Consumer and Other	523		524		35		240		4
Subtotal	$	31,658	$	39,604	$	5,323	$	45,077	$	1,162
With No Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	1,105	$	—
Real Estate—Commercial
Retail	11,792		13,923		—		12,288		434
Hotel & Motel	2,841		5,288		—		7,245		—
Gas Station & Car Wash	591		1,764		—		3,168		—
Mixed Use	1,101		3,490		—		3,496		—
Industrial & Warehouse	8,429		8,525		—		8,676		262
Other	20,282		24,412		—		17,116		608
Real Estate—Construction	1,300		1,441		—		1,611		—
Commercial Business	31,725		33,207		—		16,312		697
Trade Finance	3,074		3,091		—		2,994		253
Consumer and Other	1,556		1,676		—		1,225		25
Subtotal	$	82,691	$	96,817	$	—	$	75,236	$	2,279
Total	$	114,349	$	136,421	$	5,323	$	120,313	$	3,441

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

F-33

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	December 31, 2017						Year Ended December 31, 2017
Impaired acquired loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	262		261		126		851		—
Hotel & Motel	85		86		2		105		—
Gas Station & Car Wash	—		—		—		—		—
Mixed Use	129		129		1		179		6
Industrial & Warehouse	221		896		96		225		—
Other	319		323		21		319		17
Real Estate—Construction	—		—		—		—		—
Commercial Business	1,987		2,903		854		1,111		47
Trade Finance	—		—		—		—		—
Consumer and Other	—		—		—		—		—
Subtotal	$	3,003	$	4,598	$	1,100	$	2,790	$	70
With No Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	235	$	—
Real Estate—Commercial
Retail	3,412		4,099		—		2,866		141
Hotel & Motel	482		1,887		—		3,086		—
Gas Station & Car Wash	1		28		—		619		—
Mixed Use	152		2,240		—		2,191		—
Industrial & Warehouse	45		45		—		59		3
Other	9,131		9,951		—		5,190		340
Real Estate—Construction	—		—		—		—		—
Commercial Business	16,746		16,926		—		5,794		182
Trade Finance	2,984		3,001		—		1,274		248
Consumer and Other	1,171		1,291		—		645		7
Subtotal	$	34,124	$	39,468	$	—	$	21,959	$	921
Total	$	37,127	$	44,066	$	1,100	$	24,749	$	991

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

F-34

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	December 31, 2016						Year Ended December 31, 2016
Total Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	2,095		2,384		90		1,788		—
Hotel & Motel	6,387		6,387		337		3,650		332
Gas Station & Car Wash	215		228		41		884		—
Mixed Use	206		732		27		350		7
Industrial & Warehouse	530		530		—		547		23
Other	22,580		22,825		1,507		23,690		1,033
Real Estate—Construction	—		—		—		—		—
Commercial Business	26,543		27,161		4,493		32,626		988
Trade Finance	2,111		2,156		864		7,134		25
Consumer and Other	91		91		50		289		4
Subtotal	$	60,758	$	62,494	$	7,409	$	70,958	$	2,412
With No Related Allowance:
Real Estate—Residential	$	3,562	$	3,562	$	—	$	712	$	119
Real Estate—Commercial
Retail	12,753		13,290		—		10,745		451
Hotel & Motel	6,122		11,735		—		8,275		14
Gas Station & Car Wash	5,043		7,449		—		4,817		39
Mixed Use	7,303		7,822		—		3,284		282
Industrial & Warehouse	9,673		9,748		—		10,252		350
Other	20,181		21,492		—		13,086		479
Real Estate—Construction	1,300		1,441		—		1,322		—
Commercial Business	8,675		9,472		—		10,559		203
Trade Finance	3,918		3,918		—		1,674		208
Consumer and Other	1,073		1,136		—		1,026		29
Subtotal	$	79,603	$	91,065	$	—	$	65,752	$	2,174
Total	$	140,361	$	153,559	$	7,409	$	136,710	$	4,586

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

F-35

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	December 31, 2016						Year Ended December 31, 2016
Impaired acquired loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	1,826		2,114		85		1,387		—
Hotel & Motel	—		—		—		—		—
Gas Station & Car Wash	—		—		—		203		—
Mixed Use	136		136		2		280		7
Industrial & Warehouse	—		—		—		—		—
Other	337		341		26		327		18
Real Estate—Construction	—		—		—		—		—
Commercial Business	294		339		73		448		5
Trade Finance	—		—		—		—		—
Consumer and Other	—		—		—		32		—
Subtotal	$	2,593	$	2,930	$	186	$	2,677	$	30
With No Related Allowance:
Real Estate—Residential	$	679	$	679	$	—	$	136	$	—
Real Estate—Commercial
Retail	3,148		3,214		—		2,496		152
Hotel & Motel	4,767		7,171		—		5,700		14
Gas Station & Car Wash	1,568		1,815		—		1,506		39
Mixed Use	5,315		5,551		—		1,238		245
Industrial & Warehouse	66		66		—		873		3
Other	6,023		6,752		—		4,021		177
Real Estate—Construction	—		—		—		—		—
Commercial Business	141		386		—		580		2
Trade Finance	—		—		—		—		—
Consumer and Other	431		484		—		453		9
Subtotal	$	22,138	$	26,118	$	—	$	17,003	$	641
Total	$	24,731	$	29,048	$	186	$	19,680	$	671

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

F-36

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Year Ended December 31, 2015
Total Impaired Loans	Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—
Real Estate—Commercial
Retail	3,388		—
Hotel & Motel	10,512		230
Gas Station & Car Wash	1,542		59
Mixed Use	498		9
Industrial & Warehouse	3,686		25
Other	12,585		1,110
Real Estate—Construction	—		—
Commercial Business	31,790		998
Trade Finance	6,209		527
Consumer and Other	153		7
Subtotal	$	70,363	$	2,965
With No Related Allowance:
Real Estate—Residential	$	—	$	—
Real Estate—Commercial
Retail	10,779		464
Hotel & Motel	6,455		93
Gas Station & Car Wash	3,685		107
Mixed Use	2,375		51
Industrial & Warehouse	10,186		254
Other	9,355		362
Real Estate—Construction	1,153		—
Commercial Business	8,722		345
Trade Finance	986		—
Consumer and Other	1,177		26
Subtotal	$	54,873	$	1,702
Total	$	125,236	$	4,667

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

F-37

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Year Ended December 31, 2015
Impaired acquired loans	Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—
Real Estate—Commercial
Retail	1,835		—
Hotel & Motel	—		—
Gas Station & Car Wash	1,246		59
Mixed Use	380		9
Industrial & Warehouse	72		—
Other	797		16
Real Estate—Construction	—		—
Commercial Business	671		15
Trade Finance	—		—
Consumer and Other	—		—
Subtotal	$	5,001	$	99
With No Related Allowance:
Real Estate—Residential	$	—	$	—
Real Estate—Commercial
Retail	2,301		105
Hotel & Motel	5,889		73
Gas Station & Car Wash	651		64
Mixed Use	210		13
Industrial & Warehouse	1,275		9
Other	4,162		53
Real Estate—Construction	—		—
Commercial Business	892		55
Trade Finance	—		—
Consumer and Other	629		7
Subtotal	$	16,009	$	379
Total	$	21,010	$	478

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

F-38

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following tables present the aging of past due loans as of December 31, 2017 and December 31, 2016 by class of loans:

	December 31, 2017
	Past Due and Accruing								Nonaccrual Loans (2)		Total Delinquent and Nonaccrual Loans
	30-59 Days		60-89  Days		90 or More Days		Total
	(Dollars in thousands)
Legacy Loans
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	2,384		—		—		2,384		3,179		5,563
Hotel & Motel	1,884		1,027		—		2,911		3,931		6,842
Gas Station & Car Wash	956		—		—		956		590		1,546
Mixed Use	129		—		—		129		1,132		1,261
Industrial & Warehouse	1,121		99		—		1,220		3,403		4,623
Other	1,408		—		—		1,408		5,689		7,097
Real Estate—Construction	—		—		—		—		1,300		1,300
Commercial Business	698		505		—		1,203		8,540		9,743
Trade Finance	—		—		—		—		—		—
Consumer and Other	7,512		93		407		8,012		471		8,483
Subtotal	$	16,092	$	1,724	$	407	$	18,223	$	28,235	$	46,458
Acquired Loans (1)
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	81		216		—		297		638		935
Hotel & Motel	—		1,219		—		1,219		568		1,787
Gas Station & Car Wash	1,161		41		—		1,202		1		1,203
Mixed Use	151		—		—		151		152		303
Industrial & Warehouse	804		264		—		1,068		221		1,289
Other	—		—		—		—		1,389		1,389
Real Estate—Construction	—		—		—		—		—		—
Commercial Business	1,088		155		—		1,243		14,560		15,803
Trade Finance	—		—		—		—		—		—
Consumer and Other	957		—		—		957		1,011		1,968
Subtotal	$	4,242	$	1,895	$	—	$	6,137	$	18,540	$	24,677
TOTAL	$	20,334	$	3,619	$	407	$	24,360	$	46,775	$	71,135

⁽¹⁾  Acquired loans exclude PCI loans.

⁽²⁾  Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $22.1 million.

F-39

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	December 31, 2016
	Past Due and Accruing								Nonaccrual Loans (2)		Total Delinquent and Nonaccrual Loans
	30-59 Days		60-89  Days		90 or More Days		Total
	(Dollars in thousands)
Legacy Loans
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	480		—		—		480		3,672		4,152
Hotel & Motel	1,836		3,137		—		4,973		1,392		6,365
Gas Station & Car Wash	362		—		—		362		3,690		4,052
Mixed Use	—		—		—		—		1,305		1,305
Industrial & Warehouse	—		697		—		697		1,922		2,619
Other	2,871		—		—		2,871		4,007		6,878
Real Estate—Construction	—		1,513		—		1,513		1,300		2,813
Commercial Business	558		815		—		1,373		9,371		10,744
Trade Finance	—		500		—		500		2,056		2,556
Consumer and Other	146		58		305		509		229		738
Subtotal	$	6,253	$	6,720	$	305	$	13,278	$	28,944	$	42,222
Acquired Loans (1)
Real Estate—Residential	$	—	$	—	$	—	$	—	$	679	$	679
Real Estate—Commercial
Retail	1,611		—		—		1,611		1,871		3,482
Hotel & Motel	95		—		—		95		4,501		4,596
Gas Station & Car Wash	68		340		—		408		993		1,401
Mixed Use	—		—		—		—		48		48
Industrial & Warehouse	257		—		—		257		—		257
Other	350		—		—		350		2,144		2,494
Real Estate—Construction	—		—		—		—		—		—
Commercial Business	1,303		684		—		1,987		345		2,332
Trade Finance	—		—		—		—		—		—
Consumer and Other	331		25		—		356		549		905
Subtotal	$	4,015	$	1,049	$	—	$	5,064	$	11,130	$	16,194
TOTAL	$	10,268	$	7,769	$	305	$	18,342	$	40,074	$	58,416

⁽¹⁾  Acquired loans exclude PCI loans.

⁽²⁾  Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $15.9 million.

Loans accounted for under ASC 310-30 are generally considered accruing and performing loans and the accretable discount is accreted to interest income over the estimate life of the loan when cash flows are reasonably estimable. Accordingly, PCI loans that are contractually past due are still considered to be accruing and performing loans. The loans may be classified as nonaccrual if the timing and amount of future cash flows is not reasonably estimable.

F-40

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following tables present the risk rating for Legacy Loans and Acquired Loans as of December 31, 2017 and December 31, 2016 by class of loans:

	December 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Total
	(Dollars in thousands)
Legacy Loans:
Real Estate—Residential	$	33,557	$	1,147	$	1,439	$	—	$	36,143
Real Estate—Commercial
Retail	1,640,809		32,723		17,856		—		1,691,388
Hotel & Motel	1,224,597		19,358		8,877		—		1,252,832
Gas Station & Car Wash	737,485		9,013		590		—		747,088
Mixed Use	421,755		4,581		1,477		—		427,813
Industrial & Warehouse	577,344		16,716		24,317		—		618,377
Other	1,133,188		30,030		53,995		—		1,217,213
Real Estate—Construction	219,583		—		3,052		—		222,635
Commercial Business	1,389,043		35,640		65,912		—		1,490,595
Trade Finance	152,583		2,200		1,372		—		156,155
Consumer and Other	477,370		5		908		—		478,283
Subtotal	$	8,007,314	$	151,413	$	179,795	$	—	$	8,338,522
Acquired Loans:
Real Estate—Residential	$	13,369	$	262	$	—	$	—	$	13,631
Real Estate—Commercial
Retail	630,555		6,921		20,797		—		658,273
Hotel & Motel	275,191		4,247		24,987		—		304,425
Gas Station & Car Wash	194,063		2,872		8,992		—		205,927
Mixed Use	94,864		5,725		14,738		—		115,327
Industrial & Warehouse	250,049		14,973		16,358		265		281,645
Other	568,545		19,848		33,335		—		621,728
Real Estate—Construction	93,777		—		—		—		93,777
Commercial Business	236,705		8,593		44,964		12		290,274
Trade Finance	7,455		—		3,054		—		10,509
Consumer and Other	162,495		37		6,202		85		168,819
Subtotal	$	2,527,068	$	63,478	$	173,427	$	362	$	2,764,335
Total	$	10,534,382	$	214,891	$	353,222	$	362	$	11,102,857

F-41

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	December 31, 2016
	Pass		Special Mention		Substandard		Doubtful/Loss		Total
	(Dollars in thousands)
Legacy Loans:
Real Estate—Residential	$	34,283	$	223	$	2,883	$	—	$	37,389
Real Estate—Commercial
Retail	1,303,452		18,929		15,430		—		1,337,811
Hotel & Motel	1,187,709		12,763		9,026		—		1,209,498
Gas Station & Car Wash	643,282		7,259		3,690		—		654,231
Mixed Use	375,312		—		1,467		—		376,779
Industrial & Warehouse	478,528		29,830		13,745		—		522,103
Other	969,024		22,220		41,017		—		1,032,261
Real Estate—Construction	159,230		14,745		1,300		—		175,275
Commercial Business	1,032,232		15,919		65,885		95		1,114,131
Trade Finance	68,051		5,673		7,670		—		81,394
Consumer and Other	179,864		1		829		—		180,694
Subtotal	$	6,430,967	$	127,562	$	162,942	$	95	$	6,721,566
Acquired Loans:
Real Estate—Residential	$	18,007	$	1,809	$	679	$	—	$	20,495
Real Estate—Commercial
Retail	772,465		9,860		21,110		—		803,435
Hotel & Motel	328,396		5,419		18,233		—		352,048
Gas Station & Car Wash	249,379		8,437		11,338		—		269,154
Mixed Use	118,643		3,105		12,505		8		134,261
Industrial & Warehouse	321,040		31,819		9,048		315		362,222
Other	736,385		23,286		29,099		—		788,770
Real Estate—Construction	78,838		—		—		—		78,838
Commercial Business	649,186		31,340		37,265		99		717,890
Trade Finance	70,535		61		2,938		—		73,534
Consumer and Other	214,437		958		5,949		1,432		222,776
Subtotal	$	3,557,311	$	116,094	$	148,164	$	1,854	$	3,823,423
Total	$	9,988,278	$	243,656	$	311,106	$	1,949	$	10,544,989

F-42

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table presents loans sold from loans held for investment or transferred from held for investment to held for sale during the year endedDecember 31, 2017 and 2016 by portfolio segment:

	Year ended December 31,
	2017		2016
	(Dollars in thousands)
Sales or reclassification to held for sale
Real Estate - Commercial	$	429	$	5,920
Real Estate - Construction	—		—
Commercial Business	—		3,457
Consumer	—		2,508
Total	$	429	$	11,885

The following table presents loans by portfolio segment and impairment method at December 31, 2017 and December 31, 2016:

	December 31, 2017
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(Dollars in thousands)
Impaired loans (recorded investment)	$	—		$	53,980		$	1,300		$	50,055		$	6,935		$	2,079		$	114,349
Specific allowance	$	—		$	1,624		$	—		$	3,661		$	3		$	35		$	5,323
Specific allowance to impaired loans	N/A			3.01		%	N/A			7.31		%	0.04		%	1.68		%	4.66		%
Other loans	$	49,774		$	8,088,056		$	315,112		$	1,730,814		$	159,729		$	645,023		$	10,988,508
General allowance	$	88		$	56,040		$	930		$	17,094		$	1,713		$	3,353		$	79,218
General allowance to other loans	0.18		%	0.69		%	0.30		%	0.99		%	1.07		%	0.52		%	0.72		%
Total loans outstanding	$	49,774		$	8,142,036		$	316,412		$	1,780,869		$	166,664		$	647,102		$	11,102,857
Total allowance for loan losses	$	88		$	57,664		$	930		$	20,755		$	1,716		$	3,388		$	84,541
Total allowance to total loans	0.18		%	0.71		%	0.29		%	1.17		%	1.03		%	0.52		%	0.76		%

	December 31, 2016
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(Dollars in thousands)
Impaired loans (recorded investment)	$	3,562		$	93,088		$	1,300		$	35,218		$	6,029		$	1,164		$	140,361
Specific allowance	$	—		$	2,002		$	—		$	4,493		$	864		$	50		$	7,409
Specific allowance to impaired loans	N/A			2.15		%	N/A			12.76		%	14.33		%	4.30		%	5.28		%
Other loans	$	54,322		$	7,749,485		$	252,813		$	1,796,803		$	148,899		$	402,306		$	10,404,628
General allowance	$	209		$	47,915		$	1,621		$	19,054		$	1,033		$	2,102		$	71,934
General allowance to other loans	0.38		%	0.62		%	0.64		%	1.06		%	0.69		%	0.52		%	0.69		%
Total loans outstanding	$	57,884		$	7,842,573		$	254,113		$	1,832,021		$	154,928		$	403,470		$	10,544,989
Total allowance for loan losses	$	209		$	49,917		$	1,621		$	23,547		$	1,897		$	2,152		$	79,343
Total allowance to total loans	0.36		%	0.64		%	0.64		%	1.29		%	1.22		%	0.53		%	0.75		%

F-43

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Under certain circumstances, the Company provides borrowers relief through loan modifications. These modifications are either temporary in nature (“temporary modifications”) or are more substantive. At December 31, 2017, total modified loans were $78.5 million, compared to $70.9 million at December 31, 2016. The temporary modifications generally consist of interest only payments for a three to six month period, whereby principal payments are deferred. At the end of the modification period, the remaining principal balance is re-amortized based on the original maturity date. Loans subject to temporary modifications are generally downgraded to Substandard or Special Mention. At the end of the modification period, the loan either 1) returns to the original contractual terms; 2) is further modified and accounted for as a troubled debt restructuring in accordance with ASC 310-10-35; or 3) is disposed of through foreclosure or liquidation.

Troubled Debt Restructurings (“TDRs”) of loans are defined by ASC 310-40, Troubled Debt Restructurings by Creditors, and ASC 470-60, Troubled Debt Restructurings by Debtors, and evaluated for impairment in accordance with ASC 310-10-35. The concessions may be granted in various forms, including reduction in the stated interest rate, reduction in the amount of principal amortization, forgiveness of a portion of a loan balance or accrued interest, or extension of the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy.

A summary of TDRs on accrual and nonaccrual by type of concession as of December 31, 2017, December 31, 2016, and December 31, 2015 is presented below:

	December 31, 2017
	TDRs on accrual								TDRs on nonaccrual								Total
	Real estate - Commercial		Commercial Business		Other		Sub-Total		Real estate - Commercial		Commercial Business		Other		Sub-Total
	(Dollars in thousands)
Payment concession	$	22,550	$	376	$	—	$	22,926	$	3,071	$	170	$	—	$	3,241	$	26,167
Maturity / Amortization concession	4,768		25,584		7,442		37,794		1,536		5,264		98		6,898		44,692
Rate concession	5,444		996		90		6,530		1,083		18		—		1,101		7,631
Principal forgiveness	—		—		—		—		—		—		—		—		—
Total	$	32,762	$	26,956	$	7,532	$	67,250	$	5,690	$	5,452	$	98	$	11,240	$	78,490

	December 31, 2016
	TDRs on accrual								TDRs on nonaccrual								Total
	Real estate - Commercial		Commercial Business		Other		Sub-Total		Real estate - Commercial		Commercial Business		Other		Sub-Total
	(Dollars in thousands)
Payment concession	$	16,358	$	29	$	—	$	16,387	$	4,417	$	1,717	$	—	$	6,134	$	22,521
Maturity / Amortization concession	1,840		17,471		4,600		23,911		1,313		6,130		2,287		9,730		33,641
Rate concession	6,856		1,665		55		8,576		5,590		387		155		6,132		14,708
Principal forgiveness	—		—		—		—		—		—		—		—		—
Total	$	25,054	$	19,165	$	4,655	$	48,874	$	11,320	$	8,234	$	2,442	$	21,996	$	70,870

	December 31, 2015
	TDRs on accrual								TDRs on nonaccrual								Total
	Real estate - Commercial		Commercial Business		Other		Sub-Total		Real estate - Commercial		Commercial Business		Other		Sub-Total
	(Dollars in thousands)
Payment concession	$	11,604	$	375	$	—	$	11,979	$	3,891	$	2,410	$	—	$	6,301	$	18,280
Maturity / Amortization concession	4,009		18,192		5,311		27,512		1,583		6,818		2,297		10,698		38,210
Rate concession	7,215		1,278		—		8,493		6,445		641		166		7,252		15,745
Principal forgiveness	—		—		—		—		—		—		—		—		—
Total	$	22,828	$	19,845	$	5,311	$	47,984	$	11,919	$	9,869	$	2,463	$	24,251	$	72,235

F-44

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

TDRs on accrual status are comprised of loans that were accruing at the time of restructuring and for which the Bank anticipates full repayment of both principal and interest under the restructured terms. TDRs that are on nonaccrual can be returned to accrual status after a period of sustained performance, generally determined to be six months of timely payments as modified. Sustained performance includes the periods prior to the modification if the prior performance met or exceeded the modified terms. TDRs on accrual status at December 31, 2017 were comprised of 24 commercial real estate loans totaling $32.8 million, 27 commercial business loans totaling $27.0 million and 56 consumer and other loans totaling $7.5 million. TDRs on accrual status at December 31, 2016 were comprised of 20 commercial real estate loans totaling $25.1 million, 23 commercial business loans totaling $19.2 million, and 19 consumer and other loans totaling $4.7 million. TDRs on accrual status at December 31, 2015 were comprised of 24 commercial real estate loans totaling $22.8 million, 28 commercial business loans totaling $19.8 million, and 4 consumer loans totaling $5.3 million. Management expects that the TDRs on accrual status as of December 31, 2017, which were all performing in accordance with their restructured terms, will continue to comply with the restructured terms because of the reduced principal or interest payments on these loans. TDRs that were restructured at market interest rates and had sustained performance as agreed under the modified loan terms may be reclassified as non-TDRs after each year end but are still monitored for potential impairment.

The Company has allocated $4.8 million, $5.3 million, and $5.7 million of specific reserves to TDRs as of December 31, 2017, 2016, and 2015, respectively. As of December 31, 2017, 2016, and 2015 the Company did not have any outstanding commitments to extend additional funds to these borrowers.

F-45

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table presents loans by class modified as TDRs that occurred during the years ended December 31, 2017, 2016, and 2015:

	For The Years Ended December 31,
	2017					2016					2015
	Number of Loans	Pre-Modification		Post-Modification		Number of Loans	Pre-Modification		Post-Modification		Number of Loans	Pre-Modification		Post-Modification
	(Dollars in thousands)
Legacy Loans:
Real Estate - Residential	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Real Estate - Commercial
Retail	2	1,082		1,082		—	—		—		2	750		733
Hotel & Motel	1	1,044		1,044		—	—		—		—	—		—
Gas Station & Car Wash	—	—		—		—	—		—		2	383		351
Mixed Use	—	—		—		—	—		—		2	437		407
Industrial & Warehouse	1	465		465		—	—		—		—	—		—
Other	—	—		—		3	1,675		6,824		2	1,762		1,700
Real Estate - Construction	—	—		—		—	—		—		—	—		—
Commercial business	14	8,507		8,507		12	12,311		7,413		18	9,171		13,234
Trade Finance	—	—		—		—	—		—		2	7,623		2,208
Consumer and Other	—	—		—		1	—		91		1	248		237
Subtotal	18	$	11,098	$	11,098	16	$	13,986	$	14,328	29	$	20,374	$	18,870
Acquired Loans:
Real Estate - Residential	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Real Estate - Commercial
Retail	3	1,642		1,642		1	1,377		1,335		—	—		—
Hotel & Motel	1	482		482		—	—		—		—	—		—
Gas Station & Car Wash	—	—		—		—	—		—		—	—		—
Mixed Use	—	—		—		—	—		—		3	425		416
Industrial & Warehouse	—	—		—		—	—		—		—	—		—
Other	2	6,946		6,946		—	—		—		—	—		—
Real Estate - Construction	—	—		—		—	—		—		—	—		—
Commercial business	8	4,224		4,224		1	13		11		1	56		13
Trade Finance	1	2,983		2,983		—	—		—		—	—		—
Consumer and Other	—	—		—		1	30		25		1	115		104
Subtotal	15	$	16,277	$	16,277	3	$	1,420	$	1,371	5	$	596	$	533
Total	33	$	27,375	$	27,375	19	$	15,406	$	15,699	34	$	20,970	$	19,403

The specific reserves for the TDRs described above as of December 31, 2017, 2016, and 2015 were $1.4 million, $1.2 million, and $2.9 million, respectively, and the charge offs for the years ended December 31, 2017, 2016, 2015 and were $0, $4 thousand, and $42 thousand respectively.

F-46

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table presents loans by class for TDRs that have been modified within the previous twelve months and have subsequently had a payment default during the years ended December 31, 2017, 2016, and 2015:

	For The Years Ended December 31,
	2017			2016			2015
	Number of Loans	Balance		Number of Loans	Balance		Number of Loans	Balance
	(Dollars in thousands)
Legacy Loans:
Real Estate - Commercial
Retail	—	$	—	—	$	—	—	$	—
Hotel & Motel	—	—		—	—		—	—
Gas Station & Car Wash	—	—		—	—		1	121
Mixed Use	—	—		—	—		1	103
Industrial & Warehouse	—	—		—	—		—	—
Other	—	—		—	—		1	307
Commercial Business	2	178		4	580		4	2,091
Consumer and Other	—	—		—	—		—	—
Subtotal	2	$	178	4	$	580	7	$	2,622
Acquired Loans:
Real Estate - Commercial
Retail	—	$	—	—	$	—	—	$	—
Hotel & Motel	1	482		—	—		—	—
Mixed Use	—	—		—	—		1	63
Gas Station & Car Wash	—	—		—	—		—	—
Industrial & Warehouse	—	—		—	—		—	—
Other	1	2,977		—	—		—	—
Commercial Business	1	40		1	11		—	—
Consumer and Other	—	—		1	25		1	104
Subtotal	3	$	3,499	2	$	36	2	$	167
Total	5	$	3,677	6	$	616	9	$	2,789

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. The specific reserves for the TDRs described above as of December 31, 2017, 2016, and 2015 were $60 thousand, $371 thousand, and $303 thousand respectively, and the charge offs for the years ended December 31, 2017, 2016, and 2015 were $0, $4 thousand, and $0 respectively.

The two Legacy Loans that subsequently defaulted in 2017 were modified through payment concession or maturity concession. The payment concession was comprised of one commercial business loan totaling $40 thousand. The maturity concession was comprised of one commercial business loan totaling $138 thousand.

The three Acquired Loans that subsequently defaulted in 2017 were modified through payment concessions or maturity concession. The maturity concession was comprised of one commercial business loan totaling $40 thousand. There were two real estate loans totaling $3.5 million modified through payment concessions.

The four Legacy Loans that subsequently defaulted in 2016 were modified through payment concessions or maturity concession. The payment concessions were comprised of three commercial business loans totaling $490 thousand. The maturity concession was comprised of one commercial business loan totaling $90 thousand.

The two Acquired Loans that subsequently defaulted in 2016 were modified through payment concession or maturity concession. The payment concession was comprised of one commercial business loan totaling $11 thousand. There was one consumer and other loan totaling $25 thousand modified through a maturity concession.

F-47

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The seven Legacy Loans that subsequently defaulted in 2015 were modified through payment concessions or maturity concessions. The payment concessions were comprised of one real estate loan totaling $121 thousand and four commercial business loans totaling $2.1 million. The maturity concessions were comprised of two real estate loans totaling $410 thousand.

The two Acquired Loans that subsequently defaulted in 2015 were modified through payment concession or maturity concession. The payment concession was comprised of one real estate loan totaling $63 thousand. There was one consumer and other loan totaling $104 thousand modified through a maturity concession.

Related Party Loans

In the ordinary course of business, the Company enters into loan transactions with certain of its directors or associates of such directors (“Related Parties”). All loans to Related Parties were current as of December 31, 2017 and 2016, and the outstanding principal balance as of December 31, 2017 and 2016 was $41.0 million and $42.8 million, respectively. Loans to related parties at December 31, 2017 consisted of $40.0 million in commercial real estate loans and $1.0 million in commercial loans. Loans to related parties at December 31, 2016 consisted of $40.7 million in commercial real estate loans and $2.1 million in commercial loans.

F-48

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5. GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying amount of the Company’s goodwill as of December 31, 2017 and 2016 was $464.5 million and $463.0 million, respectively. Goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. Management assessed the qualitative factors related to intangible assets and goodwill and for 2017 to determine whether it was more-likely-than-not that the fair value was less than its carrying amount. Based on the analysis of these factors, management determined that it was more-likely-than-not that intangible assets were not impaired and that the fair value of goodwill exceeded the carrying value and that the two-step goodwill impairment test was not needed. Goodwill is not amortized for book purposes and is not tax deductible.

During the fourth quarter of 2016, the Company made a net adjustment of $1.4 million to the deferred tax assets and taxes receivable acquired from Wilshire which reduced the previous goodwill recorded from the transaction by $1.4 million. Subsequently in first quarter of 2017, the Company made a net adjustment of $978 thousand to OREO and deferred tax assets acquired from Wilshire which increased goodwill recorded from the Wilshire transaction by this amount. During the second quarter of 2017, the Company made a final adjustment of $475 thousand to deferred tax assets which increased goodwill by the same amount. These adjustments were made to reflect new information obtained about facts and circumstances that existed as of the acquisition date in accordance with ASC 805-10-25-13. At December 31, 2017, goodwill related to the acquisition of Wilshire totaled $359.0 million.

The following table provides information regarding the amortization of core deposit intangibles at December 31, 2017 and 2016:

		December 31,
		2017					2016
	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
		(Dollars in thousands)
Core deposit intangibles related to:
Center Financial	7 years	$	4,100	$	(3,966	)	$	4,100	$	(3,685	)
Pacific International Bank	7 years	604		(534		)	604		(467		)
Foster Bankshares	10 years	2,763		(1,636		)	2,763		(1,344		)
Wilshire Bancorp	10 years	18,138		(2,946		)	18,138		(883		)
Total		$	25,605	$	(9,082	)	$	25,605	$	(6,379	)

In July 2016, the Company recorded $18.1 million in core deposits intangibles from the acquisition of Wilshire. Total amortization expense on core deposit intangibles was $2.7 million and $1.7 million for the years ended December 31, 2017 and 2016, respectively. The increase in core deposit intangibles expenses for 2017 was due to a full year amortization of Wilshire related core deposit intangibles compared to only five months of amortization in 2016. The estimated future amortization expense over the next five years for core deposit intangibles is as follows: $2.5 million in 2018, $2.2 million in 2019, $2.1 million in 2020, $2.0 million in 2021, and $1.9 million in 2022.

In light of the Tax Cuts and Jobs Act that was enacted on December 22, 2017, the Company performed an analysis on its remaining core deposit intangibles to assess the potential impact from the reduction in corporate tax rates on core deposit intangibles. As core deposit intangibles represents the after tax cash flow savings on acquired core deposits, a change in tax rates could potentially result in an impairment to remaining core deposits intangibles. The Company determined that it was more-likely-than-not that the remaining core deposit intangibles were not impaired as a reduction in corporate tax rates would potentially increase after tax cash flows.

F-49

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6. PREMISES AND EQUIPMENT

The following table provides information regarding the premises and equipment at December 31, 2017 and 2016:

	December 31,
	2017			2016
	(Dollars in thousands)
Land	$	11,244		$	13,723
Building and improvements	23,127			21,315
Furniture, fixtures, and equipment	25,953			23,597
Leasehold improvements	27,018			22,494
Software/License	8,389			6,802
	95,731			87,931
Less: Accumulated depreciation and amortization	(39,017		)	(32,615		)
Total premises and equipment, net	$	56,714		$	55,316

Depreciation and amortization expense totaled $9.3 million, $8.1 million, and $7.0 million for 2017, 2016, and 2015, respectively. In 2017, the Company sold buildings and land related to three former branch locations for total cash proceeds of $4.9 million for a net gain of $808 thousand.

F-50

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

7. DEPOSITS

The aggregate amount of time deposits in denominations of more than $250 thousand at December 31, 2017 and 2016, was $1.28 billion and $1.08 billion, respectively. Included in time deposits of more than $250 thousand were $300.0 million in California State Treasurer’s deposits at December 31, 2017 and 2016. The California State Treasurer’s deposits are subject to withdrawal based on the State’s periodic evaluations. The Company is required to pledge eligible collateral of at least 110% of outstanding deposits. At December 31, 2017 and 2016, securities with carrying values of approximately $337.7 million and $371.6 million, respectively, were pledged as collateral for the California State Treasurer’s deposits.

The Company also utilizes brokered deposits as a secondary source of funds. Total brokered deposits at December 31, 2017 and December 31, 2016, totaled $797.0 million and $724.7 million, respectively. Brokered deposits at December 31, 2017 consisted of $258.5 million in money market and NOW accounts and $538.5 million in time deposits accounts. Brokered deposits at December 31, 2016 consisted of $303.7 million in money market and NOW accounts and $421.0 million in time deposits accounts.

At December 31, 2017, the scheduled maturities for time deposits were as follows:

	December 31, 2017
	(Dollars in thousands)
Scheduled maturities in:
2018	$	3,855,966
2019	376,108
2020	17,386
2021	21,054
2022 and thereafter	4,149
Total	$	4,274,663

The following table indicates the maturity schedules of time deposits in amounts of more than $250 thousand as of December 31, 2017:

	More than $250,000
	(Dollars in thousands)
Three months or less	$	249,568
Over three months through six months	473,313
Over six months through twelve months	493,054
Over twelve months	63,173
Total	$	1,279,108

Interest expense on deposits is summarized as follows:

	Year Ended December 31,
	2017		2016		2015
	(Dollars in thousands)
Money market and NOW	$	31,856	$	21,136	$	12,430
Savings deposits	1,354		1,282		1,670
Time deposits	41,692		25,673		19,312
Total deposit interest expense	$	74,902	$	48,091	$	33,412

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HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8. BORROWINGS

The Company maintains a secured credit facility with the FHLB against which the Bank may take advances. The borrowing capacity is limited to the lower of 25% of the Bank’s total assets or the Bank’s collateral capacity, which was $3.54 billion and $3.38 billion at December 31, 2017 and 2016, respectively. The terms of this credit facility require the Bank to pledge eligible collateral with the FHLB equal to at least 100% of outstanding advances. The Company also has an unsecured credit facility with the FHLB totaling $91.0 million at December 31, 2017.

Real estate secured loans with a carrying amount of approximately $4.91 billion and $5.53 billion were pledged as collateral for borrowings from the FHLB at December 31, 2017 and 2016, respectively. At December 31, 2017 and 2016, other than FHLB stock, no securities were pledged as collateral for borrowings from the FHLB.

At December 31, 2017 and 2016, FHLB advances were $1.16 billion and $754.3 million, and had a weighted average effective interest rate of 1.63% and 1.22%, respectively which is net of any discounts on acquired borrowing. FHLB borrowing at December 31, 2017 had various maturities through December 2022. At December 31, 2017 and December 31, 2016, $0 and $20.2 million, respectively, of the advances were putable advances. The original rate on FHLB advances as of December 31, 2017 ranged between 0.94% and 2.48%. At December 31, 2017, the Company had a remaining borrowing capacity of $2.32 billion. The Company acquired $200.0 million in FHLB advances from the acquisition of Wilshire during the third quarter of 2016, of which $100.0 million was repaid in the same quarter.

At December 31, 2017, the Company also had $69.9 million in overnight federal funds purchased from lines at other banks. There were no federal funds purchased from other banks at December 31, 2016. Total FHLB advances and federal funds purchased at December 31, 2017 was $1.23 billion compared to $754.3 million at December 31, 2016.

At December 31, 2017, the contractual maturities for FHLB advances and federal funds purchased were as follows:

	December 31, 2017
Scheduled maturities in:	(Dollars in thousands)
2018	$	429,900
2019	322,693
2020	185,000
2021	145,000
2022 and thereafter	145,000
Total	$	1,227,593

As a member of the Federal Reserve Bank system, the Company may also borrow from the Federal Reserve Bank of San Francisco. The maximum amount that we may borrow from the Federal Reserve Bank’s discount window is up to 95% of the outstanding principal balance of the qualifying loans and the fair value of the securities that we pledge. At December 31, 2017, the principal balance of the qualifying loans pledged at the Federal Reserve Bank was $732.0 million and there were no investment securities pledged. There were no borrowings outstanding against this line.

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HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9. SUBORDINATED DEBENTURES

At December 31, 2017, the Company had nine wholly-owned subsidiary grantor trusts that had issued $126.0 million of pooled trust preferred securities. Trust preferred securities accrue and pay distributions periodically at specified annual rates as provided in the indentures. The trusts used the net proceeds from the offering to purchase a like amount of subordinated debentures (the “Debentures”) of the Company. The Debentures are the sole assets of the trusts. The Company’s obligations under the subordinated debentures and related documents, taken together, constitute a full and unconditional guarantee by the Company of the obligations of the trusts. The trust preferred securities are mandatorily redeemable upon the maturity of the Debentures, or upon earlier redemption as provided in the indentures. The Company has the right to redeem the Debentures in whole (but not in part) on or after specific dates, at a redemption price specified in the indentures plus any accrued but unpaid interest to the redemption date. The Company also has a right to defer consecutive payments of interest on the debentures for up to five years.

The following table is a summary of trust preferred securities and debentures at December 31, 2017:

Issuance Trust	Issuance Date	Trust Preferred Security Amount		Subordinated Debentures Amount		Rate Type	Current Rate	Maturity Date
		(Dollars in thousands)
Nara Capital Trust III	06/05/2003	$	5,000	$	5,155	Variable	4.74%	06/15/2033
Nara Statutory Trust IV	12/22/2003	5,000		5,155		Variable	4.21%	01/07/2034
Nara Statutory Trust V	12/17/2003	10,000		10,310		Variable	4.55%	12/17/2033
Nara Statutory Trust VI	03/22/2007	8,000		8,248		Variable	3.24%	06/15/2037
Center Capital Trust I	12/30/2003	18,000		13,827		Variable	4.21%	01/07/2034
Wilshire Statutory Trust II	03/17/2005	20,000		15,314		Variable	3.39%	03/17/2035
Wilshire Statutory Trust III	09/15/2005	15,000		10,767		Variable	2.99%	09/15/2035
Wilshire Statutory Trust IV	07/10/2007	25,000		17,479		Variable	2.97%	09/15/2037
Saehan Capital Trust I	03/30/2007	20,000		14,598		Variable	3.31%	06/30/2037
TOTAL ISSUANCE		$	126,000	$	100,853

The Company’s investment in the common trust securities of the issuer trusts of $3.9 million at both December 31, 2017 and December 31, 2016, is included in other assets. Although the subordinated debt issued by the trusts are not included as a component of stockholders’ equity in the consolidated balance sheets, the debt is treated as capital for regulatory purposes. The trust preferred security debt issuances are includable in Tier I capital up to a maximum of 25% of capital on an aggregate basis. Any amount that exceeds 25% qualifies as Tier 2 capital.

Under the “Merger and Acquisition Transition Provisions” in BASEL III, if a depository institution holding company of $15 billion or more acquires a depository institution holding company with total consolidated assets of less than $15 billion as of December 31, 2009, the non-qualifying capital instruments of the resulting organization will be subject to a phase-out schedule. The phase-out schedule ended in 2016 and therefore in accordance with BASEL III, the Company’s subordinated debenture will no longer qualify for Tier 1 treatment once the Company exceeds total consolidated assets of $15 billion or more since the Company had acquisitions subsequent to December 31, 2009. The subordinated debentures will be still be eligible for Tier 2 inclusion once the Company exceeds $15 billion or more in total consolidated assets.

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HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

10. INCOME TAXES

The following presents a summary of income tax provision follows for the years ended December 31:

	Current		Deferred			Total
	(Dollars in thousands)
2017
Federal	$	64,910	$	31,464		$	96,374
State	24,739		3,276			28,015
	$	89,649	$	34,740		$	124,389
2016
Federal	$	50,780	$	4,198		$	54,978
State	20,922		1,552			22,474
	$	71,702	$	5,750		$	77,452
2015
Federal	$	47,919	$	(1,393	)	$	46,526
State	16,548		17			16,565
	$	64,467	$	(1,376	)	$	63,091

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). Among other changes, the Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%. The Company has not yet completed accounting for the tax effects of enactment of the Tax Act; however, the Company has reasonably estimated the effects of the Tax Act and recorded provisional amounts in the Company’s financial statements as of December 31, 2017 in accordance with SEC Staff Accounting Bulletin No. 118 (“SAB 118”). The Company recorded a provisional amount increasing income tax provision expense by $25.4 million, included in federal deferred income tax provision for the year ended December 31, 2017 in the table above. This amount is comprised of the re-measurement of federal net deferred tax assets and re-evaluation of investments in affordable housing partnerships resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21% from 35%. The Company is still completing its analysis of the impact of the Tax Act and will record any adjustments to the provisional amount as a component of income tax expense during the measurement period provided for in SAB 118.

A reconciliation of the difference between the federal statutory income tax rate and the effective tax rate is shown in the following table for the years ended December 31:

	Year Ended December 31,
	2017		2016		2015
Statutory tax rate	35.00	%	35.00	%	35.00	%
State taxes-net of federal tax effect	7.04	%	7.28	%	7.21	%
Rate change - federal and state	9.36	%	—	%	—	%
CRA investment tax credit	(3.50	)%	(2.40	)%	(1.31	)%
Bank owned life insurance	(0.09	)%	(0.26	)%	(0.25	)%
Municipal securities	(0.45	)%	(0.22	)%	(0.15	)%
Nondeductible transaction costs	(0.02	)%	0.80	%	—	%
Other	(0.19	)%	0.31	%	0.11	%
Effective income tax rate	47.15	%	40.51	%	40.61	%

F-54

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Deferred tax assets and liabilities at December 31, 2017 and 2016 are comprised of the following:

	At December 31,
	2017			2016
	(Dollars in thousands)
Deferred tax assets:
Purchase accounting fair value adjustment	$	21,508		$	42,009
Statutory bad debt deduction less than financial statement provision	20,162			26,574
Net operating loss carryforward	2,351			4,171
Investment security provision	593			1,646
State tax deductions	4,304			5,669
Accrued compensation	149			207
Deferred compensation	214			348
Mark to market on loans held for sale	764			1,244
Depreciation	221			3,157
Nonaccrual loan interest	6,272			7,330
Other real estate owned	1,753			1,507
FDIC loss share receivable	362			772
Unrealized loss on securities available for sale	8,961			9,989
Non-qualified stock option and restricted share expense	1,339			2,187
Goodwill	203			490
Other	3,053			7,063
Total Deferred Tax Assets	$	72,209		$	114,363
Deferred tax liabilities:
FHLB stock dividends	$	(695	)	$	(1,054	)
Deferred loan costs	(5,857		)	(7,085		)
State taxes deferred and other	(3,229		)	(6,629		)
Prepaid expenses	(1,542		)	(1,840		)
Amortization of intangibles	(5,236		)	(8,639		)
Lease expense	(447		)	(1,006		)
Total Deferred Tax Liabilities	$	(17,006	)	$	(26,253	)
Net deferred tax assets:	$	55,203		$	88,110

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluates both positive and negative evidence, including the existence of any cumulative losses in the current year and the prior two years, the amount of taxes paid in available carry-back years, the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. This analysis is updated quarterly and adjusted as necessary.

Based on the analysis, the Company has determined that a valuation allowance for deferred tax assets was not required as of December 31, 2017 and 2016.

F-55

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

A summary of the Company’s net operating loss carry-forwards is as follows:

	Federal					State
	Remaining Amount		Expires	Annual Limitation		Remaining Amount		Expires	Annual Limitation
	(Dollars in thousands)
2017
Saehan Bank (acquired by Wilshire)	$	2,940	2030	$	226	$	2,940	2030	$	226
Korea First Bank of New York	991		2019	497		—		N/A	—
Pacific International Bank	6,089		2032	420		—		N/A	—
Total	$	10,020		$	1,143	$	2,940		$	226
2016
Saehan Bank (acquired by Wilshire)	$	3,166	2030	$	226	$	3,166	2030	$	226
Korea First Bank of New York	1,488		2019	497		—		N/A	—
Pacific International Bank	6,509		2032	420		—		N/A	—
Total	$	11,163		$	1,143	$	3,166		$	226

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the state of California and various other states. The statute of limitations for the assessment of taxes for the consolidated Federal income tax return is closed for all tax years up to and including 2013. The expiration of the statute of limitations for the assessment of taxes for the various state income and franchise tax returns for the Company and subsidiaries varies by state. The Company is currently under examination by the California Franchise Tax Board (FTB) for the 2011, 2012, and 2013 tax years and by the New York State Department of Taxation for the 2013, 2014, and 2015 tax years. Wilshire Bancorp Inc. is currently under examination by the FTB for the 2011, 2012, and 2013 tax years. While the outcomes of the examinations are unknown, the Company does not expect any material adjustments.

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2017 and 2016 is as follows:

	At December 31,
	2017			2016
	(Dollars in thousands)
Balance at January 1,	$	2,187		$	1,816
Additions based on tax positions related to the prior year through acquisition	3			1,399
Expiration of the statute of limitations for assessment of taxes	—			(916		)
Settlements with taxing authorities	(65		)	(112		)
Balance at December 31,	$	2,125		$	2,187

The total amount of unrecognized tax benefits was $2.1 million at December 31, 2017 and $2.2 million at December 31, 2016 and is primarily for uncertainties related to California enterprise zone loan interest deductions taken in prior years. The total amount of tax benefits that, if recognized, would favorably impact the effective tax rate was $1.9 million and $1.6 million at December 31, 2017 and 2016, respectively. The Company expects the total amount of unrecognized tax benefits to decrease by $2.1 million within the next twelve months due to the settlement with the state tax authority.

The Company recognizes interest and penalties related to income tax matters in income tax expense. The Company had approximately $348 thousand and $306 thousand for interest and penalties accrued at December 31, 2017 and 2016, respectively.

F-56

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

11. STOCK-BASED COMPENSATION

The Company has a stock-based incentive plan (the “2016 Plan”) to award equity as a form of compensation. The 2016 Plan, was approved by the Company’s stockholders on September 1, 2016. The 2016 Plan provides for grants of stock options, stock appreciation rights (“SARs”), restricted stock, performance shares, and performance units (sometimes referred to individually or collectively as “awards”) to non-employee directors, employees, and consultants of the Company. Stock options may be either incentive stock options (“ISOs”), as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or nonqualified stock options (“NQSOs”). Stock options and restricted stock were assumed from the merger of Wilshire at substantially the same terms as those prior to the merger after applying the exchange ratio of 0.7034. These stock awards were issued to former Wilshire employees and directors through the 2016 Plan.

The 2016 Plan gives the Company flexibility to (i) attract and retain qualified non-employee directors, executives, other key employees, and consultants with appropriate equity-based awards to; (ii) motivate high levels of performance; (iii) recognize employee contributions to the Company’s success; and (iv) align the interests of the 2016 Plan participants with those of the Company’s stockholders. The plan initially had 2,400,000 shares available for grant to participants. The exercise price for shares under an ISO may not be less than 100% of fair market value on the date the award is granted under Code Section 422. Similarly, under the terms of the 2016 Plan, the exercise price for SARs and NQSOs may not be less than 100% of fair market value on the date of grant. Performance units are awarded to a participant at the market price of the Company’s common stock on the date of award (after the lapse of the restriction period and the attainment of the performance criteria). No minimum exercise price is prescribed for performance shares and restricted stock awarded under the 2016 Plan. All options not exercised generally expire 10 years after the date of grant.

ISOs, SARs and NQSOs have vesting periods of three to five years and have 10-year contractual terms. Restricted stock, performance shares, and performance units will be granted with a restriction period of not less than one year from the grant date for performance-based awards and not more than three years from the grant date for time-based vesting of grants. Compensation expense for awards is recorded over the vesting period. The grant date fair value of stock option awards are estimated on the date of grant using the Black-Scholes option valuation model. The expected life (estimated period of time outstanding) of options is estimated using the simplified method. The expected volatility is based on historical volatility for a period equal to the stock option’s expected life. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant.

The Company had another stock-based incentive plan, the 2007 Equity Incentive Plan (“2007 Plan”), which was approved by stockholders in May 2007. Under the terms of this plan, awards cannot be granted under the plan more than ten years after the plan adoption date. Therefore, subsequent to May 2017, equity awards can no longer be issued from this plan.

The 2016 plan has 1,341,621 shares available for future grants as of December 31, 2017.

The total shares reserved for issuance will serve as the underlying value for all equity awards under the 2016 Plan. With the exception of the shares underlying stock options and restricted stock awards, the board of directors may choose to settle the awards by paying the equivalent cash value or awarding the appropriate number of shares. For the year ended December 31, 2017, 165,612 shares of restricted and performance unit awards were granted under the 2007 and 2016 Plans. The fair value of performance unit awards granted is the fair market value of the Company’s common stock on the date of grant. In 2017, 2016 and 2015, 0, 1,281,552, and 0 options were granted, respectively.

The following is a summary of stock option activity under the 2007 and 2016 Plans for the year ended December 31, 2017:

	Number of Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding - January 1, 2017	1,603,876		$	15.28
Granted	—		—
Exercised	(215,270	)	8.46
Expired	(250,762	)	21.61
Forfeited	(62,421	)	17.17
Outstanding - December 31, 2017	1,075,423		$	15.06	7.26	$	3,433,460
Options exercisable - December 31, 2017	644,086		$	13.81	6.54	$	2,857,618

F-57

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following is a summary of restricted and performance unit activity under the 2007 and 2016 Plans for the year ended December 31, 2017:

	Number of Shares		Weighted- Average Grant Date Fair Value
Outstanding - January 1, 2017	398,658		$	16.16
Granted	165,612		16.77
Vested	(149,792	)	16.15
Forfeited	(35,059	)	16.30
Outstanding - December 31, 2017	379,419		$	16.42

The total fair value of restricted and performance units vested for the year ended December 31, 2017, 2016, and 2015 was $2.7 million, $1.9 million, and $899 thousand respectively.

The amount charged against income related to stock based payment arrangements was $3.2 million, $3.0 million, and $1.0 million for the years ended December 31, 2017, 2016 and 2015, respectively.

At December 31, 2017, unrecognized compensation expense related to non-vested stock option grants and restricted and performance units aggregated $5.5 million, and is expected to be recognized over a remaining weighted average vesting period of 3 years.

The estimated annual stock-based compensation expense as of December 31, 2017 for each of the succeeding years is indicated in the table below:

	Stock Based Compensation Expense
	(Dollars in thousands)
For the year ended December 31:
2018	$	2,757
2019	1,466
2020	864
2021	420
2022	42
Total	$	5,549

On August, 21, 2017 the Company adopted the Hope Employee Stock Purchase Plan (“ESPP”). The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions which build up between the offering date and the purchase date. At the purchase date, the Company uses the accumulated funds to purchase shares in the Company on behalf of the participating employees at a 10% discount from the closing price of the Company’s common shares. The closing price is the lower of either the closing price on the first day of the offering period or on the closing price on the purchase date. The dollar amount of common shares purchased under the ESPP must not exceed 20% of the participating employee’s base salary, subject to a cap of $25 thousand in stock value based on the grant date. The ESPP is considered compensatory under GAAP and compensation expense for the ESPP is recognized as part of the Company’s stock based compensation expenses. The compensation expense for ESPP for the year ended December 31, 2017 was $64 thousand. The Company did not have any compensation expenses for the ESPP in 2016 or 2015.

F-58

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

12. EMPLOYEE BENEFIT PLANS

Deferred Compensation Plan— The Company established a deferred compensation plan that permits eligible officers, key executives and directors to defer a portion of their compensation. The deferred compensation plan is still in effect and was amended in 2007 to be in compliance with the new IRC §409(A) regulations. The deferred compensation, together with accrued accumulated interest, is distributable in cash after retirement or termination of service. The deferred compensation liabilities at December 31, 2017 and 2016 amounted to $1.1 million and $1.2 million, respectively, which are included in other liabilities in the accompanying consolidated statements of financial condition. Interest expense recognized under the deferred compensation plan totaled $21 thousand, $23 thousand and $25 thousand for 2017, 2016 and 2015, respectively.

The Company established and the Board approved a Long Term Incentive Plan (“LTIP”) that rewards the named executive officers (“NEO”) with deferred compensation if the Company meets certain performance goals, the NEOs meet individual performance goals, and the NEOs remain employed for a pre-determined period (between five and ten years, depending on the officer). Only two NEOs are currently participating in the LTIP. The Company accrued $455 thousand, $418 thousand, and $306 thousand in 2017, 2016, and 2015, respectively.

The Company has insured the lives of certain officers and directors who participate in the deferred compensation plan. The Company has also purchased life insurance policies and entered into split dollar life insurance agreements with certain directors and officers. Under the terms of the split dollar life insurance agreements, a portion of the death benefits received by the Company will be paid to beneficiaries named by the directors and officers.

401(k) Savings Plan— The Company established a 401(k) savings plan, which is open to all eligible employees who are 21 years old or over and have completed three months of service. The Company matches 75% of the first 8% of the employee’s compensation contributed. Employer matching is vested 25% after 2 years of service, 50% after 3 years of service, 75% after 4 years of service, and 100% after 5 or more years of service. Total employer contributions to the plan amounted to approximately $4.4 million, $2.6 million and $2.3 million for 2017, 2016 and 2015, respectively.

Post-Retirement Benefit Plans— In 2016, the Company assumed Wilshire’s Survivor Income Plan which was adopted in 2003 for the benefit of the directors and officers of the bank in order to encourage their continued employment and service, and to reward them for their past contributions. Wilshire had also entered into separate Survivor Income Agreements with officers and directors relating to the Survivor Income Plan. Under the terms of the Survivor Income Plan, each participant is entitled to a base amount of death proceeds as set forth in the participant’s election to participate, which base amount increases three percent per calendar year, but only until normal retirement age, which is 65. If the participant remains employed after age 65, the death benefit will be fixed at the amount determined at age 65. If a participant has attained age 65 prior to becoming a participant in the Survivor Income Plan, the death benefit shall be equal to the base amount set forth in their election to participate with no increases. We are obligated to pay any death benefit owed under the Survivor Income Plan in a lump sum within 90 days following the participant’s death.

In 2011, the Company assumed Center Bank’s Survivor Income Plan which was adopted in 2004 for the benefit of the directors and officers of the bank in order to encourage their continued employment and service, and to reward them for their past contributions. Under the terms of the Survivor Income Plan, each participant is entitled to a base amount of death proceeds as set forth in the participant’s election to participate. We are obligated to pay any death benefit owed under the Survivor Income Plan in a lump sum within 90 days following the participant’s death.

The participant’s rights under the Survivor Income Plans terminate upon termination of employment. Upon termination of employment (except for termination for cause), if the participant has achieved the vesting requirements outlined in the plan, the participant will have the option to convert the amount of death benefits calculated at such termination to a split dollar arrangement, provided such arrangement is available under bank regulations and/or tax laws. If available, the Bank and the participant will enter into a split dollar agreement and a split dollar policy endorsement. Under such an arrangement, the Bank would annually impute income to the officer or the director based on tax laws or rules in force upon conversion. The Company’s accumulated post-retirement benefit obligation at December 31, 2017 and 2016, was $7.8 million and $6.6 million, respectively.

F-59

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

13. COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company leases its premises under non-cancelable operating leases, and at December 31, 2017, the future minimum rental commitments under these leases are as follows:

	December 31, 2017
	(Dollars in thousands)
2018	$	14,055
2019	12,124
2020	9,774
2021	9,426
2022	5,456
Thereafter	15,863
	$	66,698

Operating lease expense recorded under such leases in 2017, 2016 and 2015 amounted to approximately $17.8 million, $14.7 million and $11.1 million, respectively.

Legal Contingencies

In the normal course of business, the Company is involved in various legal claims. Management has reviewed all legal claims against the Company with counsel for the fiscal year ended December 31, 2017, and has taken into consideration the views of such counsel as to the outcome of the claims. Accrued loss contingencies for all legal claims totaled approximately $414 thousand and $557 thousand at December 31, 2017 and December 31, 2016, respectively. It is reasonably possible we may incur losses in addition to the amounts we have accrued. However, at this time, we are unable to estimate the range of additional losses that are reasonably possible because of a number of factors, including the fact that certain of these litigation matters are still in their early stages and involve claims for which, at this point, we believe have little to no merit. Management has considered these and other possible loss contingencies and does not expect the amounts to be material to any of the consolidated financial statements.

Unfunded Commitments and Letters of Credit

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and other commercial letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. The Company’s exposure to credit loss in the event of nonperformance by the other party to commitments to extend credit and standby letters of credit and other commercial letters of credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for extending loan facilities to customers. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable; inventory; property, plant and equipment; and income-producing properties.

Commitments at December 31, 2017 and 2016 are summarized as follows:

	December 31,
	2017		2016
	(Dollars in thousands)
Commitments to Fund Low Income Housing Partnership Investments	$	38,467	$	24,409
Unused Credit Extensions	1,526,981		1,592,221
Standby Letters of Credit	74,748		63,753
Other Commercial Letters of Credit	74,147		52,125
	$	1,714,343	$	1,732,508

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Commitments and letters of credit generally have variable rates that are tied to the prime rate. The amount of fixed rate commitments is not considered material to this presentation. From time to time, the Company enters into certain types of contracts that contingently require the Company to indemnify parties against third party claims and other obligations customarily indemnified in the ordinary course of the Company’s business. The terms of such obligations vary, and, generally, a maximum obligation is not explicitly stated. Therefore, the overall maximum amount of the obligations cannot be reasonably estimated. The most significant of these contracts relate to certain agreements with the Company’s officers and directors under which the Company may be required to indemnify such persons for liabilities arising out of their employment relationship. Historically, the Company has not been obligated to make significant payments for these obligations, and no liabilities have been recorded for these obligations in its consolidated statements of financial condition as of December 31, 2017 and 2016.

Mortgage-Banking Derivatives

The Company enters into various stand-alone mortgage-banking derivatives in order to hedge the risk associated with the fluctuation of interest rates. Changes in fair value are recorded as mortgage banking revenue. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. At December 31, 2017, the Company had approximately $4.8 million in interest rate lock commitments and $4.8 million in total forward sales commitments for the future delivery of residential mortgage loans. At December 31, 2016, the Company had approximately $23.7 million in interest rate lock commitments and $13.0 million in total forward sales commitments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

14. FAIR VALUE MEASUREMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value. The fair value inputs of the instruments are classified and disclosed in one of the following categories pursuant to ASC 820:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. The quoted price shall not be adjusted for any blockage factor (i.e., size of the position relative to trading volume).

Level 2 - Pricing inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Fair value is determined through the use of models or other valuation methodologies, including the use of pricing matrices. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 - Pricing inputs are unobservable for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The inputs into the determination of fair value require significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

The Company uses the following methods and assumptions in estimating fair value disclosures for financial instruments. Financial assets and liabilities recorded at fair value on a recurring and non-recurring basis are listed as follows:

Securities Available for Sale

The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

The fair values of the Company’s Level 3 securities available for sale were measured using an income approach valuation technique. The primary inputs and assumptions used in the fair value measurement were derived from the securities’ underlying collateral which included discount rates, prepayment speeds, payment delays, and an assessment of the risk of default of the underlying collateral, among other factors. Significant increases or decreases in any of the inputs or assumptions would result in a significant increase or decrease in the fair value measurement.

Interest Rate Swaps

The Company offers interest rate swaps to certain loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans. The Company originates a variable rate loan and enters into a variable-to-fixed interest rate swap with the customer. The Company also enters into an offsetting swap with a correspondent bank. These back-to-back agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. The fair value of these derivatives is based on a discounted cash flow approach. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of interest rate swaps is classified as Level 2.

Impaired Loans

The fair values of impaired loans are generally measured for impairment using the practical expedients permitted by FASB ASC 310-10-35 including impaired loans measured at an observable market price (if available), or at the fair value of the loan’s collateral (if the loan is collateral dependent). Fair value of the loan’s collateral, when the loan is dependent on collateral, is determined by appraisals or independent valuation, less costs to sell of 8.5%. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and income approach. Adjustment may be made in the appraisal procses by the independent appraiser to adjust for differences between the comparable sales and income data available for similar loans

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

and the underlying collateral. For commercial and industrial and asset backed loans, independent valuations may include a 20-60% discount for accounts receivable and a 50-70% discount for inventory. These result in a Level 3 classification.

Derivatives

The fair value of our derivative financial instruments is based on derivative valuation models using market data inputs as of the valuation date that can generally be verified and do not typically involve significant management judgments. (Level 2 inputs).

OREO

OREO is fair valued at the time the loan is foreclosed upon and the asset is transferred to OREO. The value is based primarily on third party appraisals, less costs to sell of 8.5% and result in a Level 3 classification of the inputs for determining fair value. OREO is reviewed and evaluated on at least an annual basis for additional impairment and adjusted to lower of cost or market accordingly, based on the same factors identified above.

Loans Held for Sale

Loans held for sale are carried at the lower of cost or fair value, as determined by outstanding commitments from investors, or based on recent comparable sales (Level 2 inputs), if available, and if not available, are based on discounted cash flows using current market rates applied to the estimated life and credit risk (Level 3 inputs) or may be assessed based upon the fair value of the collateral which is obtained from recent real estate appraisals (Level 3 inputs). These appraisals may utilize a single valuation approach or a combination of approaches including the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in Level 3 classification of the inputs for determining fair value.

Mortgage Banking Derivatives

Mortgage banking derivative instruments consist of interest rate lock commitments and forward sale contracts that trade in liquid markets. The fair value is based on the prices available from third party investors. Due to the observable nature of the inputs used in deriving the fair value, the valuation of mortgage banking derivatives are classified as Level 2.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

				Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2017			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Securities available-for-sale:
U.S. Government agency and U.S. Government sponsored enterprises:
Debt securities	$	—		$	—	$	—		$	—
Collateralized mortgage obligations	838,709			—		838,709			—
Mortgage-backed securities:
Residential	471,214			—		471,214			—
Commercial	301,365			—		301,365			—
Corporate securities	4,475			—		4,475			—
Municipal securities	82,537			—		81,429			1,108
Mutual funds	21,957			21,957		—			—
Interest rate swaps	(2,838		)	—		(2,838		)	—
Mortgage banking derivatives	33			—		33			—
Liabilities:
Interest rate swaps	(2,838		)	—		(2,838		)	—
Mortgage banking derivatives	5			—		5			—

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

				Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2016			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Securities available for sale:
U.S. Government agency and U.S. Government sponsored enterprises:
Debt securities	$	12,008		$	—	$	12,008		$	—
Collateralized mortgage obligations	705,667			—		705,667			—
Mortgage-backed securities:
Residential	602,952			—		602,952			—
Commercial	125,089			—		125,089			—
Corporate securities	11,127			—		11,127			—
Municipal securities	86,839			—		85,700			1,139
Mutual funds	13,058			13,058		—			—
Interest rate swaps	(1,565		)	—		(1,565		)	—
Mortgage banking derivatives	147			—		147			—
Liabilities:
Interest rate swaps	(1,565		)	—		(1,565		)	—
Mortgage banking derivatives	41			—		41			—

There were no transfers between Level 1, 2, and 3 during the period ended December 31, 2017 and 2016.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2017 and 2016:

	For the year ended December 31,
	2017			2016
	(Dollars in thousands)
Securities available for sale - municipal securities
Beginning Balance, January 1	$	1,139		$	1,166
Total losses included in other comprehensive income	(31		)	(27		)
Ending Balance, December 31	$	1,108		$	1,139

Assets measured at fair value on a non-recurring basis at December 31, 2017 and 2016 are summarized below:

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Impaired loans at fair value:
Real estate	$	6,086	$	—	$	—	$	6,086
Commercial business	3,320		—		—		3,320
Consumer	84		—		—		84
Other real estate owned	5,615		—		—		5,615

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Impaired loans at fair value:
Real estate	$	58,882	$	—	$	—	$	58,882
Commercial business	6,563		—		—		6,563
Consumer	253		—		—		253
Loans held for sale, net	3,788		—		3,788		—
Other real estate owned	21,990		—		—		21,990

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For assets measured at fair value on a non-recurring basis, the total net (losses) gains, which include charge offs, recoveries, specific reserves, and gains and losses on sales recognized in 2017 and 2016 are summarized below:

	Year Ended December 31,
	2017			2016
	(Dollars in thousands)
Assets:
Impaired loans at fair value:
Real estate	$	(2,552	)	$	163
Commercial business	(5,424		)	(5,856		)
Trade finance	(1,187		)	1,739
Consumer	(912		)	(713		)
Loans held for sale, net	12			2,920
Other real estate owned	(1,962		)	2,245

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Fair Value of Financial Instruments

Carrying amounts and estimated fair values of financial instruments, not previously presented, at December 31, 2017 and December 31, 2016 were as follows:

	December 31, 2017
	Carrying Amount		Estimated Fair Value		Fair Value Measurement
	(Dollars in thousands)
Financial Assets:
Cash and cash equivalents	$	492,000	$	492,000	Level 1
Interest bearing deposits in other financial institutions and other investments	53,366		52,960		Level 2/3
Loans held for sale	29,661		32,048		Level 2
Loans receivable—net	11,018,034		11,112,179		Level 3
FHLB stock	29,776		N/A		N/A
Accrued interest receivable	29,979		29,979		Level 2/3
Servicing assets	24,710		27,511		Level 3
Customers’ liabilities on acceptances	1,691		1,691		Level 2
Financial Liabilities:
Noninterest bearing deposits	$	2,998,734	$	2,998,734	Level 2
Saving and other interest bearing demand deposits	3,573,212		3,573,212		Level 2
Time deposits	4,274,663		4,263,585		Level 2
FHLB advances	1,157,693		1,220,529		Level 2
Federal funds purchased	69,900		69,900		Level 2
Subordinated debentures	100,853		100,853		Level 2
Accrued interest payable	15,961		15,961		Level 2
Acceptances outstanding	1,691		1,691		Level 2
	December 31, 2016
	Carrying Amount		Estimated Fair Value		Fair Value Measurement
	(Dollars in thousands)
Financial Assets:
Cash and cash equivalents	$	437,334	$	437,334	Level 1
Interest bearing deposits in other financial institutions and other investments	44,202		43,773		Level 2/3
Loans held for sale	22,785		24,492		Level 2
Loans receivable—net	10,463,989		10,666,642		Level 3
FHLB stock	21,964		N/A		N/A
Accrued interest receivable	26,880		26,880		Level 2/3
Servicing assets	26,457		29,030		Level 3
Customers’ liabilities on acceptances	2,899		2,899		Level 2
Financial Liabilities:
Noninterest bearing deposits	$	2,900,241	$	2,900,241	Level 2
Saving and other interest bearing demand deposits	3,703,352		3,703,352		Level 2
Time deposits	4,038,442		4,036,664		Level 2
FHLB advances	754,290		749,486		Level 2
Subordinated debentures	99,808		99,808		Level 2
Accrued interest payable	10,863		10,863		Level 2
Acceptances outstanding	2,899		2,899		Level 2

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The carrying amount approximates estimated fair value for cash and cash equivalents, savings and other interest bearing demand deposits, customers’ and Bank’s liabilities on acceptances, noninterest bearing deposits, federal funds purchased, subordinated debentures, and variable rate loans or deposits that reprice frequently and fully. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. Fair value of SBA loans held for sale is based on market quotes. For fair value of non-SBA loans held for sale, see the measurement method discussed previously. Fair value of time deposits and debt is based on current rates for similar financing. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on their transferability. The fair value of commitments to fund loans represents fees currently charged to enter into similar agreements with similar remaining maturities and is not presented herein. The fair value of these financial instruments is not material to the consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

15. DERIVATIVE FINANCIAL INSTRUMENTS

The Company offers a loan hedging program to certain loan customers. Through this program, the Company originates a variable rate loan with the customer. The Company and the customer will then enter into a fixed interest rate swap. Lastly, an identical offsetting swap is entered into by the Company with a correspondent bank. These “back-to-back” swap arrangements are intended to offset each other and allow the Company to book a variable rate loan, while providing the customer with a contract for fixed interest payments. In these arrangements, the Company’s net cash flow is equal to the interest income received from the variable rate loan originated with the customer. These customer swaps are not designated as hedging instruments and are recorded at fair value in other assets and other liabilities. The changes in fair value are recognized in the income statement in other income and fees.

At December 31, 2017 and 2016, the following interest rate swaps related to our loan hedging program were outstanding:

	December 31, 2017			December 31, 2016
	(Dollars in thousands)
Interest rate swaps on loans with loan customers
Notional amount	$	274,156		$	223,098
Weighted average remaining term (years)	7.3			7.4
Received fixed rate (weighted average)	4.34		%	4.29		%
Pay variable rate (weighted average)	3.74		%	3.06		%
Estimated fair value	$	(2,838	)	$	(1,565	)
Back to back interest rate swaps with correspondent banks
Notional amount	$	274,156		$	223,098
Weighted average remaining term (years)	7.3			7.4
Received variable rate (weighted average)	3.74		%	3.06		%
Pay fixed rate (weighted average)	4.34		%	4.29		%
Estimated fair value	$	2,838		$	1,565

The Company enters into various stand-alone mortgage-banking derivatives in order to hedge the risk associated with the fluctuation of interest rates. Changes in fair value are recorded as mortgage banking revenue. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. At December 31, 2017 and December 31, 2016, the Company had approximately $4.8 million and $23.7 million in interest rate lock commitments, and $4.8 million and $13.0 million in total forward sales commitments for the future delivery of residential mortgage loans, respectively.

The following table reflects the notional amount and fair value of mortgage banking derivatives for the dates indicated:

	December 31, 2017				December 31, 2016
	Notional Amount		Fair Value		Notional Amount		Fair Value
	(Dollars in thousands)
Assets:
Interest rate lock commitments	$	4,795	$	25	$	11,168	$	130
Forward sale contracts related to mortgage banking:	$	2,452	$	8	$	3,223	$	17
Liabilities:
Interest rate lock commitments	$	—	$	—	$	1,810	$	3
Forward sale contracts related to mortgage banking:	$	2,343	$	5	$	9,755	$	38

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

16. STOCKHOLDERS’ EQUITY

On July 29, 2016 the Company acquired Wilshire in an all-stock transaction. Pursuant to the merger agreement, Wilshire shareholders received 0.7034 shares of the Company’s common stock for each share of Wilshire stock owned. Based on this exchange ratio, 55.5 million shares of the Company’s common stock were issued to Wilshire shareholders at $15.37 per share, the closing price of the Company’s stock on July 29, 2016. As a result, $852.9 million in common stock was issued as consideration in the transaction and $3.4 million in additional paid-in capital was recorded to account for the fair value of stock options and restricted stock assumed. Total stockholders’ equity at December 31, 2017 was $1.93 billion, compared to $1.86 billion at December 31, 2016.

Warrants

The Company assumed certain warrants (related to the TARP Capital Purchase Plan) to purchase shares of the Company’s common stock. On May 20, 2015, the U.S. Treasury Department completed an auction to sell certain of its warrant positions. The Company submitted the winning bid to repurchase an outstanding warrant to purchase 350,767 shares of the Company’s common stock and repurchased this warrant for $1.2 million. As of December 31, 2017, the U.S. Treasury Department held one remaining warrant for the purchase of 20,379 shares of the Company’s common stock.

Dividends

The Company’s Board of Directors approved and the Company paid quarterly dividends of $0.12 per common share for the first and second quarter of 2017 and paid dividends of $0.13 per common shares for the third and fourth quarter of 2017. The Company paid aggregate dividends of $67.7 million to common shareholders in 2017. The Company’s Board of Directors paid quarterly dividends of $0.12 per common share for the fourth quarter of 2016 and $0.11 per common share for the first three quarters of 2016. The Company paid aggregate dividends of $42.5 million to common shareholders during 2016.

Accumulated Other Comprehensive Loss

The following table presents the changes to accumulated other comprehensive loss at December 31, 2017, 2016, and 2015:

	December 31, 2017			December 31, 2016			December 31, 2015
	(Dollars in thousands)
Balance at beginning of period	$	(14,657	)	$	(1,832	)	$	1,705
Unrealized losses on securities available for sale    and interest only strips	(5,796		)	(21,273		)	(5,717		)
Reclassification adjustments for gains realized in income	(301		)	(950		)	(424		)
Less tax benefit	(2,570		)	(9,398		)	(2,604		)
Total other comprehensive loss	(3,527		)	(12,825		)	(3,537		)
Reclassification from AOCI to retained earnings due to tax reform	$	(3,597	)	$	—		$	—
Balance at end of period	$	(21,781	)	$	(14,657	)	$	(1,832	)

The reclassification adjustments were recognized in net gains on sales or called securities available for sale in the consolidated statements of income. As permitted by ASU 2018-02, the Company made the election to reclassify $3.6 million in disproportionate tax effects in accumulated other comprehensive income that resulted from the reduction in corporate tax rates as a result of the Tax Act to retained earnings for the year ended December 31, 2017. The Tax Act, which was enacted on December 22, 2017 and is effective staring January 1, 2018, permanently reduces the corporate tax rate from 35% to 21%. The disproportionate tax effect was a result of the re-evaluation of the Company’s deferred tax assets related to unrealized losses on investment securities available for sale and interest only strip at the lower tax rate.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

17. REGULATORY MATTERS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material and adverse effect on the Company’s and the Bank’s business, financial condition and results of operations, such as restrictions on growth or the payment of dividends or other capital distributions or management fees. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

In July, 2013, the federal bank regulatory agencies adopted final regulations, which revised their risk-based and leverage capital requirements for banking organizations to meet requirements of Dodd-Frank and to implement Basel III international agreements reached by the Basel Committee. The final rules began for the Company and the Bank on January 1, 2015 and are subject to a phase-in period through January 1, 2019. The final rules that had an impact on the Company and the Bank include:

• An increase in the minimum Tier 1 capital ratio from 4.00% to 6.00% of risk-weighted assets;

• A new category and a required 4.50% of risk-weighted assets ratio is established for “Common Equity Tier 1” as a subset of Tier 1 capital limited to common equity;

• A minimum non-risk-based leverage ratio is set at 4.00%, eliminating a 3.00% exception for higher rated banks;

• Changes in the permitted composition of Tier 1 capital to exclude trust preferred securities, mortgage servicing rights and certain deferred tax assets and include unrealized gains and losses on available-for-sale debt and equity securities;

• The risk-weights of certain assets for purposes of calculating the risk-based capital ratios are changed for high volatility commercial real estate acquisition, development and construction loans, certain past due non-residential mortgage loans and certain mortgage-backed and other securities exposures; and

• A new additional capital conservation buffer of 2.5% of risk weighted assets over each of the required capital ratios is being phased in from 2016 to 2019 and must be met to avoid limitations on the ability of the Bank to pay dividends, repurchase shares, or pay discretionary bonuses. The capital conservation buffer for the Company was initially 0.625% in 2016, and increases 0.625% annually until 2019. As ofDecember 31, 2017, the capital conservation buffer for the Company stood at 1.25%.

As of December 31, 2017, the ratios for the Company and the Bank are sufficient to meet the fully phased-in conservation buffer.

As of December 31, 2017 and 2016, the most recent regulatory notification categorized the Bank as “well-capitalized” under the regulatory framework for prompt corrective action. To generally be categorized as “well-capitalized”, the Bank must maintain minimum total risk-based, Tier I risk-based, common equity Tier 1, and Tier I leverage ratios as set forth in the following table. There are no conditions or events since the most recent notification from regulators that management believes has changed the institution’s category. As of December 31, 2017 and 2016, the Company and the Bank met the capital adequacy requirements to which they are subject.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below:

	Actual				Required For Capital Adequacy Purposes				Minimum Capital Adequacy With Capital Conservation Buffer				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
December 31, 2017
Common equity tier 1 capital (to risk-weighted assets):
Company	$	1,471,193	12.30	%	$	538,435	4.50	%	$	688	5.75	%	N/A		N/A
Bank	$	1,548,401	12.95	%	$	538,178	4.50	%	$	688	5.75	%	$	777,368	6.50	%
Total capital (to risk-weighted assets):
Company	$	1,653,521	13.82	%	$	957,217	8.00	%	$	1,106,782	9.25	%	N/A		N/A
Bank	$	1,633,778	13.66	%	$	956,761	8.00	%	$	1,106,255	9.25	%	$	1,195,951	10.00	%
Tier I capital (to risk-weighted assets):
Company	$	1,568,144	13.11	%	$	717,913	6.00	%	$	867,478	7.25	%	N/A		N/A
Bank	$	1,548,401	12.95	%	$	717,571	6.00	%	$	687,672	7.25	%	$	956,761	8.00	%
Tier I capital (to average assets):
Company	$	1,568,144	11.54	%	$	543,528	4.00	%	N/A		N/A		N/A		N/A
Bank	$	1,548,401	11.40	%	$	543,441	4.00	%	N/A		N/A		$	679,301	5.00	%
	Actual				Required For Capital Adequacy Purposes				Minimum Capital Adequacy With Capital Conservation Buffer				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
December 31, 2016
Common equity tier 1 capital (to risk-weighted assets):
Company	$	1,400,246	12.10	%	$	520,917	4.50	%	$	593,267	5.125	%	N/A		N/A
Bank	$	1,475,228	12.75	%	$	520,631	4.50	%	$	592,941	5.125	%	$	752,022	6.50	%
Total capital (to risk-weighted assets):
Company	$	1,578,690	13.64	%	$	926,076	8.00	%	$	998,425	8.625	%	N/A		N/A
Bank	$	1,557,765	13.46	%	$	925,566	8.00	%	$	997,876	8.625	%	$	1,156,957	10.00	%
Tier I capital (to risk-weighted assets):
Company	$	1,496,153	12.92	%	$	694,557	6.00	%	$	766,906	6.625	%	N/A		N/A
Bank	$	1,475,228	12.75	%	$	694,174	6.00	%	$	766,484	6.625	%	$	925,566	8.00	%
Tier I capital (to average assets):
Company	$	1,496,153	11.49	%	$	520,947	4.00	%	N/A		N/A		N/A		N/A
Bank	$	1,475,228	11.33	%	$	520,903	4.00	%	N/A		N/A		$	651,129	5.00	%

F-72

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

18. EARNINGS PER SHARE (“EPS”)

Basic EPS does not reflect the possibility of dilution that could result from the issuance of additional shares of common stock upon exercise or conversion of outstanding securities, and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted to common stock that would then share in our earnings. For the years ended December 31, 2017 and 2016, stock options and restricted shares awards of approximately 443 thousand and 519 thousand shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were considered antidilutive. Additionally, warrants to purchase 20,379 and 19,849 of common stock (related to the TARP Capital Purchase Plan) were antidilutive and excluded for the year endedDecember 31, 2017 and 2016, respectively.

The following table shows the computation of basic and diluted EPS for the years ended December 31, 2017, 2016, and 2015:

	Net income available to common stockholders (Numerator)		Weighted Average Shares (Denominator)	Per Share (Amount)
	(Dollars in thousands, except share and per share data)
2017
Basic EPS - common stock	$	139,445	135,348,938	$	1.03
Effect of Dilutive Securities:
Stock Options and Performance Units			336,031
Diluted EPS - common stock	$	139,445	135,684,969	$	1.03
2016
Basic EPS - common stock	$	113,747	103,289,059	$	1.10
Effect of Dilutive Securities:
Stock Options and Performance Units			241,259
Diluted EPS - common stock	$	113,747	103,530,318	$	1.10
2015
Basic EPS - common stock	$	92,258	79,549,651	$	1.16
Effect of Dilutive Securities:
Stock Options and Performance Units			31,905
Common stock warrants			30,244
Diluted EPS - common stock	$	92,258	79,611,800	$	1.16

F-73

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

19. SERVICING ASSETS

Servicing assets are recognized when SBA and residential mortgage loans are sold with servicing retained with the income statement effect recorded in gains on sales of loans. Servicing assets are initially recorded at fair value based on the present value of the contractually specified servicing fee, net of servicing costs, over the estimated life of the loan, using a discount rate. The Company’s servicing costs approximates the industry average servicing costs of 40 basis points. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Management periodically evaluates servicing assets for impairment based upon the fair value of the rights as compared to the carrying amount. Impairment is determined by stratifying rights into groupings based on loan type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount.

The changes in net servicing assets for the year endedDecember 31, 2017 and 2016 were as follows:

	Year Ended December 31,
	2017			2016
	(Dollars in thousands)
Balance at beginning of period	$	26,457		$	12,000
Additions through originations of servicing assets	5,492			4,472
Additions through acquisition of Wilshire (net of servicing liabilities)	—			15,873
Amortization	(7,239		)	(5,888		)
Balance at end of period	$	24,710		$	26,457

Total servicing assets at December 31, 2017 totaled $24.7 million, and was comprised of $22.2 million in SBA servicing assets and $2.5 million in mortgage related servicing assets. At December 31, 2016, servicing assets totaled $26.5 million, comprised of $24.7 million in SBA servicing assets and $1.8 million in mortgage related servicing assets.

The Company utilizes the discounted cash flow method to calculate the initial excess servicing assets. The inputs used in determining the fair value of the servicing assets at December 31, 2017 and December 31, 2016 are presented below.

	December 31, 2017	December 31, 2016
	Range	Range
SBA Servicing Assets:
Weighted-average discount rate	10.13% ~ 11.13%	5.55% ~ 9.85%
Constant prepayment rate	7.50% ~ 12.50%	7.20% ~ 12.10%
Mortgage Servicing Assets:
Weighted-average discount rate	9.50% ~ 9.66%	7.00% ~ 7.25%
Constant prepayment rate	7.71% ~ 9.13%	13.77% ~ 15.88%

F-74

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

20. CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

The following presents the unconsolidated condensed financial statements of only the parent company, Hope Bancorp, Inc., as of December 31, 2017 and 2016:

STATEMENTS OF FINANCIAL CONDITION

	December 31,
	2017		2016
	(Dollars in thousands)
ASSETS:
Cash and cash equivalents	$	13,327	$	13,859
Other assets	10,763		11,428
Investment in bank subsidiary	2,005,462		1,930,455
TOTAL ASSETS	$	2,029,552	$	1,955,742
LIABILITIES:
Other borrowings	$	100,853	$	99,808
Accounts payable and other liabilities	444		461
Total liabilities	101,297		100,269
STOCKHOLDERS’ EQUITY	1,928,255		1,855,473
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,029,552	$	1,955,742

STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	Years Ended December 31,
	2017			2016			2015
	(Dollars in thousands)
Interest income	$	—		$	—		$	—
Interest expense	5,089			2,927			1,561
Other operating expense	5,988			9,826			4,967
Equity in earnings of bank subsidiary	146,397			121,996			96,318
Income before income tax benefit	135,320			109,243			89,790
Income tax benefit	4,125			4,504			2,468
Net income	139,445			113,747			92,258
Other comprehensive loss, net of tax	(3,527		)	(12,825		)	(3,537		)
Comprehensive income	$	135,918		$	100,922		$	88,721

F-75

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

STATEMENTS OF CASH FLOWS

	Years Ended December 31,
	2017			2016			2015
	(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	139,445		$	113,747		$	92,258
Adjustments to reconcile net income to net cash from   operating activities:
Amortization	1,045			558			188
Stock-based compensation expense	523			—			—
Change in other assets	665			2,172			717
Change in accounts payable and other liabilities	(17		)	(119		)	(1,053		)
Equity in undistributed earnings of bank subsidiary	(76,397		)	(77,996		)	(62,318		)
Net cash from operating activities	65,264			38,362			29,792
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash and cash equivalents acquired through the merger	—			13,248			—
Net cash from investing activities	—			13,248			—
CASH FLOWS USED IN FINANCING ACTIVITIES:
Issuance of additional stock pursuant to various stock plans	1,865			—			—
Redemption of common stock warrant	—			—			(1,150		)
Payments of cash dividends	(67,661		)	(42,493		)	(33,407		)
Net cash used in financing activities	(65,796		)	(42,493		)	(34,557		)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(532		)	9,117			(4,765		)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	13,859			4,742			9,507
CASH AND CASH EQUIVALENTS, END OF YEAR	$	13,327		$	13,859		$	4,742

F-76

HOPE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

21. QUARTERLY FINANCIAL DATA (UNAUDITED)    

Summarized unaudited quarterly financial data follows for the three months ended:

	2017 Quarter Ended,
	March 31		June 30		September 30		December 31
	(Dollars in thousands, except per share data)
Interest income	$	132,743	$	138,533	$	147,643	$	153,185
Interest expense	17,838		21,713		24,380		26,793
Net interest income before provision for loan losses	114,905		116,820		123,263		126,392
Provision for loan losses	5,600		2,760		5,400		3,600
Net interest income after provision for loan losses	109,305		114,060		117,863		122,792
Noninterest income	17,603		16,115		16,246		16,451
Noninterest expense	67,699		64,037		61,837		73,028
Income before income tax provision	59,209		66,138		72,272		66,215
Income tax provision	22,999		25,451		27,708		48,231
Net income	$	36,210	$	40,687	$	44,564	$	17,984
Basic earnings per common share	$	0.27	$	0.30	$	0.33	$	0.13
Diluted earnings per common share	$	0.27	$	0.30	$	0.33	$	0.13

	2016 Quarter Ended,
	March 31		June 30		September 30		December 31
	(Dollars in thousands, except per share data)
Interest income	$	83,461	$	83,534	$	119,552	$	135,387
Interest expense	11,853		12,470		16,078		18,178
Net interest income before provision for loan losses	71,608		71,064		103,474		117,209
Provision for loan losses	500		1,200		6,500		800
Net interest income after provision for loan losses	71,108		69,864		96,974		116,409
Noninterest income	8,774		10,707		14,146		18,192
Noninterest expense	40,050		40,348		67,846		66,731
Income before income tax provision	39,832		40,223		43,274		67,870
Income tax provision	16,210		16,833		17,169		27,240
Net income	$	23,622	$	23,390	$	26,105	$	40,630
Basic earnings per common share	$	0.30	$	0.29	$	0.22	$	0.30
Diluted earnings per common share	$	0.30	$	0.29	$	0.22	$	0.30

F-77

EX-12.1

EXHIBIT 12.1

HOPE BANCORP, INC.

RATIO OF EARNINGS TO FIXED CHARGES

	Year Ended December 31,
	2017		2016		2015		2014		2013
	(Dollars in thousands)
Excluding interest on deposits	13.12x		13.44x		15.24x		14.62x		14.10x
Including interest on deposits	3.73x		4.01x		4.50x		4.67x		5.00x
Net income	$	139,445	$	113,747	$	92,258	$	88,615	$	81,755
Income tax provision	124,389		77,452		63,091		57,907		52,399
Income before income taxes	$	263,834	$	191,199	$	155,349	$	146,522	$	134,154
Earnings before income taxes and fixed charges including interest on deposits	$	360,503	$	254,662	$	199,674	$	186,460	$	167,713
Earnings before income taxes and fixed charges excluding interest on deposits	$	285,601	$	206,571	$	166,262	$	157,282	$	144,392
Interest on deposits	$	74,902	$	48,091	$	33,412	$	29,178	$	23,321
Interest on other borrowings	15,822		10,488		7,206		6,882		6,697
Estimate of interest within rental expense *	5,945		4,884		3,707		3,878		3,541
Preferred stock dividends	—		—		—		—		—
Total fixed charges and Preferred Stock dividends, Including interest on deposits	$	96,669	$	63,463	$	44,325	$	39,938	$	33,559
Total fixed charges and Preferred Stock dividends, excluding interest on deposits	$	21,767	$	15,372	$	10,913	$	10,760	$	10,238

* Estimate of interest within rental expense is estimated to be one-third of rental expense which is considered a reasonable approximation of the interest factor.

EX-14.1

EXHIBIT 14.1

Hope Bancorp, Inc.

&

Bank of Hope

DIRECTOR CODE OF ETHICS AND BUSINESS CONDUCT

1

TABLE OF CONTENTS

I.INTRODUCTION...........................................................................................................................2

II.COMPLIANCE WITH LAWS, RULES AND REGULATIONS ...............................................2

III.PRESERVE CONFIDENTIALITY ..............................................................................................3

A.    CONFIDENTIAL INFORMATION .......................................................................................................... 3

B.    PROPRIETARY INFORMATION ............................................................................................................ 3

C.    INSIDER TRADING ............................................................................................................................. 4

IV.CONFLICTS OF INTEREST........................................................................................................5

A.    OVERVIEW ........................................................................................................................................ 5

B.    SPECIFIC GUIDELINES ....................................................................................................................... 5

V.COMPANY’S REGULATORY REPORTING AND INVESTIGATIONS...............................6

VI.PROCESS FOR REPORTING, WAIVERS AND EXCEPTIONS ............................................6

2

I.INTRODUCTION

This Director Code of Ethics and Business Conduct (this “Code”) sets forth the policy and standards concerning ethical conduct for the directors of Hope Bancorp, Inc. (“Hope”) and Hope Bank (“Bank”), and each of their affiliates’ (collectively hereinafter referred to as the “Company”). Directors are expected to act in a manner that will serve the best interests of the Company; that is fair, honest, and trustworthy; that is in compliance with applicable laws, rules, and regulations; that will preserve confidential information; that will avoid conflicts of interest or the appearance of conflicts of interest; that will avoid fraudulent acts, misconduct and dishonesty; and that will protect and uphold the best use of the Company’s assets.

While this Code addresses many types of business and social relationships that may present legal and ethical concerns, it does not cover every issue that may arise. This Code instead contains basic principles to guide directors when facing ethical issues. In some situations involving ethical judgment, it may be difficult for a director to determine the proper course of action or obligations under this Code. In such instances, a director should not rely solely on his or her own judgment, but must discuss the matter with the appropriate party as set forth in Section VI. Process for Reporting, Waivers and Exceptions.

All directors should read and abide by this Code in conjunction with the Company’s Code of Ethics and Business Conduct. Each director has a duty and obligation to report any violation or potential violation of the Code or the Company’s Code of Ethics and Business Conduct. The Company will fully investigate all reported violations to determine the facts of the case and will take appropriate action up to and including the removal of the director, instituting civil proceedings, and alerting authorities for potential criminal sanctions.

II. COMPLIANCE WITH LAWS, RULES AND REGULATIONS

A director must at all times conduct himself or herself in a manner which is in compliance with applicable laws, rules, regulations, as well as with Company’ policies. Any behavior which could lead to an action being brought before a criminal or civil court is deemed in violation of the Code. Directors will avoid fraudulent acts, misconduct and dishonesty, or the appearance of such. It is prohibited for a director to use illegal (for example, theft, bribery, misrepresentations, or espionage) or unethical means or methods while serving as a director and when acting on behalf of the Company.

Any director convicted of or pleading guilty to a felony or who has been sanctioned by a regulatory agency must immediately notify the Legal Department. Directors must respond honestly and truthfully to all inquiries made by the Company’s independent public accounting firm or supervisory regulatory agency.

Directors are prohibited from unlawfully soliciting or demanding, for the benefit of any person, or unlawfully accepting anything of value for or in connection with any transaction or business of Bank within the context of the Bank Bribery Act.

2

III.PRESERVE CONFIDENTIALITY

A. Confidential Information

“Confidential Information” includes private, sensitive, privileged information in possession of the Company and the Company’s Board of Directors (the “Board”), including information entrusted to them by its customers. Confidential Information also includes all materials and formal or informal communications by directors on behalf of the Company, including but not limited to Board and Board Committee packages, agendas and minutes which have not been disclosed to the public. Confidential Information is intended solely for use within the Company and is limited to those with a business need-to-know. Confidential Information acquired by a director through his or her service must be held in the strictest confidence. Except for an appropriate business reason, Confidential Information must not be discussed outside the Company and must be discussed within Company only with those with a business need-to-know for the performance of duties on behalf of Company. Confidential Information is to be used solely for corporate purposes and never for personal gain, and may not be used to engage in direct or indirect competition with the Company.

Confidential Information may not be disclosed to persons outside the Company except when disclosure is made in accordance with the Company’s policies and customer agreements or as required by law.

Any prohibited disclosure of Confidential Information, by a director, may lead to their immediate dismissal from the Bank Board; in addition, a process to remove the director, for cause, subject to shareholder approval, may be initiated in relation to their directorship with the Hope Board.

B. Proprietary Information

“Proprietary Information” includes, but is not limited to, trade secrets and information regarding:

•the Company’s business;

•the Company’s financial performance, if it has not been publicly announced;

•Board and Board Committee communications and materials;

•customers;

•other Company directors;

•products, services and pricing;

•vendors;

•patents, copyright, trademarks and other intellectual property;

•systems plans and information;

•data centers or other property information; and

•business plans, marketing plans, strategies and costs.

Directors must not use or disclose Proprietary Information about the Company or its staff, customers or vendors, except as appropriate in connection with the business of the Company and in line with the requirements under applicable law.

3

C. Insider Trading

Insider trading involves the purchase or sale of securities of a company or other entity while in possession of material, nonpublic information (“MNPI”) pertaining to such company or entity. Directors must not purchase or sell securities either personally or for any account over which they have direct or indirect control if they are aware of MNPI. Please see the Hope Bancorp, Inc. and Hope Bank Insider Trading Policy for further details.

1. Material Non-Public Information - “Inside” or “nonpublic information” is information about a business organization that is not generally available to or known by the public. Such information is considered to be “material” if there is a likelihood that it would be considered important by an investor in making a decision to buy or sell a company’s securities (whether stock, bonds, notes, debentures, limited partnership units, or other equity or debt securities). Information should be presumed “material” if it relates to, among other things, any of the following:

•earnings or financial results;

•dividend increases or decreases;

•changes in previously released earnings estimates;

•significant gains or losses;

•significant expansion or curtailment of operations;

•significant merger or acquisition proposals or agreements;

•significant purchase or sale of assets;

•significant borrowing;

•major litigation;

•new debt or equity offerings;

•liquidity problems; or

•significant management or Board of Directors changes.

Questions regarding whether information is “inside” or “material” should be referred to the Legal Department or the Chief Financial Officer.

.

2. Purchase and Sales of Securities Issued by Company - Directors may not purchase or sell securities issued by the Company if they have MNPI about the Company. Directors may not purchase or sell securities issued by the Company outside the trading window determined by the Legal Department. When directors do trade in securities issued by the Company they must first obtain the approval of the Legal Department and complete any required disclosures. Directors may not invest in options (other than stock options issued under director compensation plans), puts, calls, short sales, futures contracts or other similar transactions involving securities issued by Company, regardless of whether they have MNPI. Directors must not disclose MNPI they possess to family members or others, except to those who have a reason to know, in order to perform their duties on behalf of Company.

4

IV.CONFLICTS OF INTEREST

A. Overview

Board members must avoid conflicts of interest or the appearance of conflicts of interest in their activities. A conflict of interest exists when a director is involved in an outside interest or any activity that might either conflict with the director’s duty to the Company or adversely affect the director’s judgment in the performance of his or her responsibilities to the Company. A director is required to act in a responsible and respectable manner and to remain free of influences that may result in a loss of objectivity regarding business conducted with the Company’s customers, suppliers or the Company itself. See the Bylaws of Hope for a discussion on “interested” directors. A conflict of interest is a situation in which:

• a director’s personal interest or outside economic interest in a matter may be inconsistent or incompatible with the director’s obligation to exercise his or her best judgment in pursuit of the interests of the Company;

• a director appropriates a business opportunity that belongs to the Company; or

• a reasonable question about or the appearance of such interference, inconsistency, appropriation or involvement is raised.

B. Specific Guidelines

1. Related Party Transactions - In addition to the duties and responsibilities addressed above a director must report all related party transactions as soon as the director becomes aware of the potential related party transaction. See the Corporate Governance Guidelines for a detailed discussion.

2. Outside Business Activities - Directors should inform the Chair of the Nomination and Governance Committee of the Board (“NGC”) and the Chief Executive Officer of the Company before accepting an offer to serve as an officer, general partner, or director of an outside for-profit enterprise so that the opportunity can be reviewed for any possible conflicts of interest.

3. Independence - Directors should inform the Chair of NGC and the Chief Executive Officer of the Company of any circumstance which might reasonably affect their “independence” under the requirements of the NASDAQ Stock Market Rules and other applicable laws and regulations and the Company’s Corporate Governance Guidelines.

4. Loan / Credit -- Federal law prohibits preferential lending to directors by correspondent banks, and requires Company directors to report any outstanding credit held with a correspondent bank on a yearly basis. It is, however; permissible for the Company to extend credit to a director in accordance with FRB Regulation O (12 CFR 215) (“Regulation O”) where terms are substantially similar to terms offered to comparably situated customers who are not directors.

5. Gifts and Hospitality - Directors must not accept gifts or hospitality (including services, discounts, entertainment, travel or promotional materials) from a person or entity known to them to be an actual or potential customer or supplier, or from business or professional contacts to whom Company does or may refer business, unless the gift or hospitality was made in accordance with accepted, lawful business practices and no inference can be drawn that the gift or hospitality could influence the director in the performance of his or her duties for the Company. It is unlawful to seek or accept anything of value from any person, intending to be influenced or rewarded in connection with any business or transaction of Company.

5

6. Civic Activities - Participation in Community Reinvestment Act activities performed on behalf of the Company is encouraged. Director participation, including appointment as a trustee, director or officer, in a religious, community, professional or charitable organization does not require prior approval by NGC unless there is a lending relationship or some other potential conflict of interest between an organization and the Company. A director’s participation shall not imply that he or she is serving at the direction or request of Company.

7. Political Activities - It must be clear at all times that a director’s participation in any political activity, including, but not limited to campaigning, fundraising, donating or serving in political office, is done in an individual capacity and not as a representative of the Company. Before a director becomes a candidate or appointee for a public office, the director must notify the Chair of the NGC. Under Regulation O, the definition of a related interest includes a political or campaign committee that is controlled by a director, or where the funds or services of such committee benefit a director. Thus, the Company must comply with Regulation O before extending credit to a political or campaign committee that is controlled by a director.

When presented with a situation involving a potential conflict of interest, factors to consider include: whether an outside observer would believe or infer that the situation is improper or may interfere with a director’s work performance, responsibilities or fiduciary duty to the Company. Questions concerning the application of this guideline in specific instances should be discussed with the Legal Department or the Chair of the NGC.

V.     COMPANY’S REGULATORY REPORTING AND INVESTIGATIONS

It is of critical importance that the Company’s filings with the Securities and Exchange Commission, banking regulators, and other regulatory agencies and authorities, as well as its other public communications and disclosures are fair, complete, accurate, timely, and understandable. A director must always answer all regulatory requests fully and honestly.

A director must also cooperate fully and honestly with all requests for information related to internal or external examinations or investigations.

VI.PROCESS FOR REPORTING, WAIVERS AND EXCEPTIONS

Directors are expected to promote ethical behavior and create a culture of compliance with all applicable laws, rules and regulations. Directors should promote an environment in which the Company:

• encourages employees to communicate openly with supervisors, managers and other appropriate personnel when in doubt about the best course of action in a particular situation;

• encourages employees to report violations of laws, rules and regulations or the Company’s Code of Ethics and Business Conduct to appropriate personnel; and

• informs employees that the Company will not allow retaliation for reports made in good faith.

6

If a director becomes aware of a possible violation committed by the Company of applicable laws, rules or regulations, the director should notify the Chair of the NGC to initiate an investigation and make sure that there is a satisfactory resolution of the reported violation. A director has a fiduciary duty and obligation to report any and all possible violations, including any unethical or illegal actions committed by another director in violation of this Code or any other Company policies.

Exceptions or waivers to this Code can be approved only by the NGC and if approved, will be disclosed to Company stockholders as required by applicable laws, rules and regulations. A director requesting an exception or waiver must put all relevant facts in writing and submit the request to the Chair of the NGC. The director will be notified in writing of the decision of the NGC. If an exception or waiver is requested by the Chair of the NGC, such request should be submitted to the Chairman of the Hope Board, or if they are the same person, such request must be approved by the disinterested members of the Executive Committee of the Board.

7

EX-14.2

EXHIBIT 14.2

Code of Ethics and

Business Conduct

1

TABLE OF CONTENTS

I.    INTRODUCTION .............................................................................................................................................................. 3

II.    GENERAL POLICY STATEMENT....................................................................................................................................3

A.     Compliance with Laws and Regulations.............................................................................................................. 3

B.    Administration of the Code of Ethics and Business Conduct...............................................................................3

III.    COMPANY RECORDS AND REPORTING ..................................................................................................................... 4

IV.    PROTECTING CORPORATE ASSETS ............................................................................................................................ 4

V.    CONFLICTS OF INTEREST ............................................................................................................................................. 5

A.     General Policy ...................................................................................................................................................... 5

B.     Acceptance of Gifts .............................................................................................................................................. 5

C.    Giving of Gifts ..................................................................................................................................................... 6

D.     Political Contributions ......................................................................................................................................... 6

E.    Outside Employment and Activities...................................................................................................................... 6

F.    Service as Directors or Officers of Outside Companies ....................................................................................... 7

G.     Acting on Behalf of Customers ............................................................................................................................ 7

H.     Personal Investment Activity ................................................................................................................................ 7

I.    Corporate Opportunities ....................................................................................................................................... 8

J.    Transactions with Company ................................................................................................................................. 8

K.    Employment of Relatives ..................................................................................................................................... 9

VI.    OTHER STAFF MEMBER ACTIVITIES .......................................................................................................................... 9

A.      Personal Finances ................................................................................................................................................ 9

B.    Overdrafts ............................................................................................................................................................. 9

C.    Lending Practices .................................................................................................................................................. 9

D.     Giving Advice to Customers ............................................................................................................................... 10

E.    Giving Customers Accurate and Complete Information about all Products and Services ..................................10

F.    Receipt of Legal Documents or Subpoenas ........................................................................................................ 10

G.     Sales Incentive / Referral Programs..................................................................................................................... 10

VII.     CONFIDENTIALITY.......................................................................................................................................................... 11

A.      Customer Information ......................................................................................................................................... 11

B.    Information Regarding the Company ...................................................................................................................11

C.    Confidentiality Agreements ..................................................................................................................................11

VIII.      INSIDER TRADING ..........................................................................................................................................................11

IX.    COMPLIANCE AND ENFORCEMENT PROCEDURES ................................................................................................ 12

A.     Complaints or Concerns Regarding Accounting or Auditing Matters ................................................................. 12

B.     Reporting of Other Unusual, Suspicious or Illegal Activity or Suspected Violations of the Code of Ethics

and Business Conduct and Protection Against Retaliation .................................................................................. 12

C.    Investigating Violations........................................................................................................................................ 13

D.     Disciplinary Action .............................................................................................................................................. 13

X.    WAIVERS............................................................................................................................................................................ 14

XI.    PRIVACY ............................................................................................................................................................................ 14

XII.     E-MAIL/INTERNET POLICY ........................................................................................................................................... 15

XIII.     MISCELLANEOUS GUIDELINES FOR CONDUCT ...................................................................................................... 15

A.     Use of Company Letterhead and Name................................................................................................................. 15

B.    Dealings with Competitors ................................................................................................................................... 15

C.    Exclusive Dealings (Anti-Tying) .......................................................................................................................... 16

D.     Obstruction of Normal and Sound Banking Practice ............................................................................................ 16

E.    Improper Influence and/or Harassment ................................................................................................................. 16

XIV.      ACKNOWLEDGEMENT AND ANNUAL CERTIFICATIONS ....................................................................................... 16

XV.      AMENDMENTS ................................................................................................................................................................. 16

Exhibit A: RECEIPT AND ACKNOWLEDGEMENT CONCERNING CODE OF ETHICS AND BUSINESS CONDUCT ....... 17

Exhibit B: STATEMENT OF PERSONAL INTEREST ................................................................................................................... 18

Exhibit C: NON DISCLOSURE AGREEMENT .............................................................................................................................. 20

Exhibit D: NON SOLICITATION AGREEMENT ........................................................................................................................... 23

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I. INTRODUCTION

This Code of Ethics and Business Conduct (the “Code”) has been prepared to reflect the ongoing commitment of Hope Bancorp, Inc. and Bank of Hope (collectively “the Company”) to maintain the highest ethical standards in all Company business. The Code is intended to reflect compliance with all applicable governmental laws, rules and regulations, including but not limited to the Sarbanes-Oxley Act of 2002 and SEC regulations promulgated thereunder. In accordance with the mandate of these laws, this Code of Ethics and Business Conduct applies to all officers and employees of Hope Bancorp, Inc. and Bank of Hope (collectively “staff members”). More specifically, it applies equally to the President/Chief Executive Officer, the Chief Financial Officer, and any other senior financial officers of both Hope Bancorp, Inc. and Bank of Hope, as it does to all other officers and employees of the Company. Because this Code of Ethics and Business Conduct imposes important ethical obligations on all of the Company’s officers and employees, it is imperative that everyone read this Code of Ethics and Business Conduct carefully.

All employees are expected to treat compliance with ethical standards, as well as laws and regulations, as a critical element of their duties and responsibilities to the Company. No retaliatory action may be taken against an employee for providing information in good faith about possible Code violations or violations of laws, rules or regulations by other. Everyone will be expected, as a condition of employment, to read this Code of Ethics and Business Conduct and to sign the attached Acknowledgment, indicating their understanding of and agreement to all of the terms of this Code of Ethics and Business Conduct. Anyone with a question regarding any aspect of the Code, either when they read it for the first time or at any time thereafter, must address their questions to the Ethics Officer or other appropriate person as discussed further below. Nothing in the Code is intended to alter the nature of the at-will relationship which exists between the Company and all of its officers and employees who are not subject to written employment agreements. If any provision of this Code or the Company’s policy conflicts with applicable law or regulations, the one with the higher standard will apply, except in cases where doing so would cause non-compliance with such laws or regulations.

II. GENERAL POLICY STATEMENT

It is the Company’s policy to conduct its business in accordance with the highest ethical standards in order to comply with all applicable laws and regulations, and to merit and maintain the complete confidence and trust of its customers and the public in general. All staff members are expected to conduct all of their business and personal affairs and to manage all business transactions in a manner which reflects positively on the Company’s reputation in the industry and in the communities in which it does business. The Code is intended to address both business and personal relationships which may present potential legal and ethical concerns for anyone affiliated with the Company. It also sets forth a code of conduct to guide staff members. The term “staff member” as used herein is intended to refer to all officers and employees of the Company.

A. Compliance with Laws and Regulations

It is and has always been the Company’s policy to comply fully with the spirit and intent of all applicable governmental laws, rules and regulations which govern the Company. The Company expects all of its staff members to exercise good judgment and to exhibit the highest standards of honest and ethical conduct at all times. All officers and employees are expected to refrain from engaging in any form of illegal, dishonest or unethical conduct.

B. Administration of the Code of Ethics and Business Conduct

Each staff member is responsible for becoming familiar with the Code. Supervising officers are expected to make every reasonable effort to ensure that they themselves and all of their subordinate staff comply with the provisions of the Code. Any supervising officer who encounters a situation in which a subordinate staff member has failed to comply with the Code must immediately report the situation to the Ethics Officer.

The Audit Committee (with respect to auditing and accounting related matters) and the Compensation Committee (with respect to all other matters) shall have the ultimate responsibility for determining matters of interpretation with respect to the Code, and for making all final decisions concerning disciplinary actions if applicable. The day-to-day administration and implementation of the Code, as well as the distribution of any periodic changes to the Code to staff members, shall be the responsibility of the Ethics Officer.

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If a staff member is unsure of what to do in any situation, he or she should always seek additional guidance and information before acting. Staff members should always try to use their good judgment and common sense; if something seems improper, it probably is. If a staff member has a question or concern about any accounting-related issues, he or she should ask the Controller, the Chief Financial Officer, or, at the staff member’s option, the Chairman of the Audit Committee. For all other types of questions, the staff member should first address the question to his or her immediate supervisor. For non- accounting related issues, the staff member should ask his or her supervisor, the Ethics Officer or the Ethics Officer. If a supervisor has a question regarding the interpretation or applicability of any provision of the Code to a particular situation, such supervisor should immediately seek the advice of the Ethics Officer.

III. COMPANY RECORDS AND REPORTING

It is imperative that all records, data and information used and managed by the Company be kept current, accurate and complete. Each staff member is personally responsible for the integrity of the information, reports and records under his or her control. Records must be maintained with a sufficient level of detail to accurately reflect the Company’s transactions.

In keeping with their legal and ethical obligations, all staff members who are involved in any manner with the preparation and/or filing of any reports or documents that the Company is required to file or submit to any governmental agency, including but not limited to the SEC, the FDIC and the Federal Reserve Board, are expected to make full, fair, accurate and timely and understandable disclosure in all such reports. In furtherance of this objective, all staff members must maintain accurate Company records and retain them in accordance with the law. This obligation to insure full, fair, accurate and timely and understandable disclosure also extends to any public communication made by the Company.

The falsification of any of the Company’s books, records or documents will result in immediate dismissal. In addition, falsification of Company books and records is a felony under applicable laws.

Staff members are expected to exercise good judgment and standards when creating any Company records, including e-mail. When creating any records or documents, staff members should keep in mind that such records may need to be interpreted at a later time with the benefit of hindsight and/or the disadvantage of imperfect recollections or the lack of availability of the author to shed light on the written records.

Staff members are required to fully cooperate with audits conducted by the Company’s internal audit staff, external auditing firm or state and federal regulatory examiners. Questions raised by the auditors or examiners must be answered honestly and no adverse information may be concealed.

Staff members are required to cooperate fully with any appropriately authorized internal or external investigations. The making of any false statement to or misleading of internal or external auditors, Company representatives or regulators can be a crime and may result in severe penalties. Staff members should never withhold information that may seem to raise an ethical issue, but should immediately contact their supervisor, the Chief Risk Officer, the Ethics Officer, the Chief Financial Officer, or the Chairman of the Audit Committee, depending on the nature of the issue involved.

Staff members shall follow all specified Company guidelines and procedures with respect to the retention of records. While in general records should be maintained for specified time periods in accordance with Company policy and as required by law, a staff member must never, regardless of time, destroy any records which could potentially be relevant to any violation of law, any litigation, or any pending, threatened or foreseeable government investigation or proceeding.

IV. PROTECTING CORPORATE ASSETS

Staff members are responsible for safeguarding the tangible and intangible assets of the Company and its customers. Staff members should never use company assets for their personal benefit except as specifically permitted by the Company. Company assets include cash, securities, business plans, customer information, intellectual property (computer programs, models and other items), physical property and services. Misappropriation of corporate assets is a breach of fiduciary duty and in some cases can amount to fraud against the Company. Carelessness or waste of corporate assets can also be a breach of duty to the Company.

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Staff members should always remember that the Company’s computer, telephone, e-mail and voice mail systems are to be used primarily for business purposes, and that such systems should never be used in a way that could be harmful or embarrassing to the Company. Staff members should limit personal communications to a minimum.

V. CONFLICTS OF INTEREST

A. General Policy

One of the purposes of this Code of Ethics and Business Conduct is to remind all staff members of the importance of avoiding any actual or apparent conflict of interest in any transaction involving the Company. A conflict of interest is defined as a staff member’s involvement in any outside interest or activity which either conflicts or appears to conflict with the staff member’s duty to the Company, or which may adversely affect the staff member’s judgment in the performance of his or her responsibilities to the Company.

Staff members must not engage in any personal or business conduct which has even the potential or appearance of conflicting with the interests of the Company. All staff members are required to disclose to their supervisor any potential conflict of interest, including one in which they have been unintentionally placed as a result of a business or personal relationship with a customer, supplier, business associate or competitor of the Company. (All potential new employees must be asked before commencing employment whether they have any pre-existing relationship or investment which might present a potential conflict of interest, so that appropriate action can be taken if necessary prior to such employment or service.) The supervisor will review the situation with the next appropriate level of management and advise the staff member as to the proper course of conduct. Contemporaneous written records of all such disclosures will be retained by the Company in keeping with all applicable legal requirements. Any supervisory employee who encounters a potential or actual conflict of interest must disclose the situation to the next appropriate level of management who will review the situation and advise the supervisory employee as to the proper course of conduct. All staff members must contact either their supervisor or the next appropriate level of management in the chain of command if they have any question about whether an apparent or actual conflict of interest exists. This consultation must occur before the staff member becomes involved in the potentially problematic transaction or situation.

B. Acceptance of Gifts

Staff members and their immediate families are prohibited by law from soliciting, accepting or retaining any gift, benefit or anything of value, for themselves or for any third party, from any customer of the Company, or from any individual or organization which is either involved in a business relationship with the Company or which is seeking to establish a business relationship with the Company. A benefit is defined as any type of gift, bequest, gratuity, favor, service, loan, legacy (except from a relative), fee or compensation, or anything of monetary value.

Specific exceptions to this policy may be permitted if the benefit or gift is of nominal value and there is no, and there appears to be no, reasonable likelihood that the staff member’s business judgment might be compromised. In order to qualify for such exception, the personal benefit, however, must be one of the following:

(i) normal business courtesies, such as a meal, refreshment or entertainment of reasonable value, involving no more than ordinary amenities, where the giver is present and the purpose of the event is to hold bona fide business discussions;

(ii) non-cash gifts of reasonable value (under $100.00 within a six month period) such as are typically received at holiday time or special occasions, such as in connection with the acceptance of a new job, a promotion, wedding, or retirement and which represent only an expression of friendship on the part of the giver;

(iii) gifts based upon kinship, marriage or social relationships entirely beyond and apart from any business relation;

(iv) unsolicited advertising and promotional material of nominal value;

(v) awards given by charitable, educational, civic, or religious organizations meritorious contributions or service;

(vi) loans from other banks or financial institutions on customary terms to finance proper and usual activities such as home mortgage loans; and

(vii) discounts or rebates on merchandise or services that do not exceed those available to other customers.

Any gift or benefit offered to a staff member, other than as one of the exceptions noted above, must be reported by the staff member to his or her supervisor or to the Ethics Officer. This individual will review the situation and instruct the staff member as to the appropriate action. Contemporaneous written records of all such disclosures are retained by the Company in keeping with applicable legal requirements.

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It is important for all staff members to remember that state and federal laws make it a crime for any officer, director or employee of a federally insured bank or bank holding company, directly or indirectly, to ask or solicit, accept, receive or agree to receive anything of value, for him or herself or for any other person or entity, for or in connection with any transaction or business of the Company. Penalties for violating these laws include a fine, imprisonment, or both. Any offer of such an improper payment must be reported immediately to the staff member’s supervisor or to the Ethics Officer. Any staff member who has a question about whether anything offered to the staff member falls within this law must be directed to the staff member’s supervisor or to the Ethics Officer before the item is accepted.

C. Giving of Gifts

Staff members may not give gifts to customers under any circumstances where the gift could potentially be seen by others as consideration for any type of business favor. Any entertainment or other gifts to be offered to customers may be done only with the prior authorization of the Ethics Officer, and must be in accordance with business expense reimbursement requirements. Employees who wish to give gifts to vendors or customers must follow standard expense authorization procedures. Named executive officers may make gifts valued at less than or equal to $300 to a current or potential business customer within any calendar year. District Managers may make gifts valued at less than or equal to $200 to a current or potential business customer within any calendar year. All other employees may make a gift valued at less than or equal to

$100 to a current or potential business customer within any calendar year. All exceptions to this policy must be approved, in writing, by employee’s supervisor, and reported to the Ethics Officer before the gifts are given. Any exceptions must be approved by the Chief Executive Officer.

Employees who wish to give personal gifts to other employees must follow the general guideline that the gift be made in accordance with accepted business practices and is of sufficiently limited value that the gift could not influence the giver or the receiver in the performance of their duties for Company, nor create actual or perceived pressure to reciprocate.

Staff members should also remember that there are strict laws restricting the giving of gifts to any government officials. No gifts to any government officials will be allowed without the prior approval of the Ethics Officer.

D. Political Contributions

It is the Company’s policy to strictly comply with all applicable federal and state political campaign laws. While the Company believes that it is appropriate for every citizen to take an active interest in political and governmental affairs, all participation must be done solely as a private citizen and not as a representative of the Company. Directors, officers and employees must not make any political contribution (whether in the form of cash, goods or services) either directly or indirectly, on behalf of the Company. For these purposes, use of any of the Company’s facilities, equipment, supplies or manpower for political activities will be considered to be a contribution. All political contributions shall be made by solely by the individual on his or her own behalf. Under no circumstances may the Company require staff members to contribute to, support or oppose any political group or candidate.

The decision to make any political contribution or to engage in any election activity should not be taken lightly and legal counsel should be consulted before any contribution or expenditure is made. The Federal Election Campaign Act of 1971 (FECA) is administered by the Federal Elections Commission, and every federal banking agency treats compliance with the election campaign laws as a matter of supervisory interest.

E. Outside Employment and Activities

With the exception of a sole proprietorship or family-owned small business as described below, staff members may not accept a position as a director, trustee, officer, owner or general partner of any outside business organized for-profit without obtaining approval of a member of executive management and the Ethics Officer. Sole proprietorships owned by the staff member must be reported to the Ethics Officer. Under no circumstances may a staff member accept outside employment or engage in any outside activity, whether for profit or not, if the employment or activity might (i) pose a potential, actual or apparent conflict of interest, (ii) subject the Company to adverse publicity or criticism, or (iii) interfere with the staff member’s performance of their duties or productivity on behalf of the Company.

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The Company encourages individual participation in civic activities. Normally, such voluntary efforts must take place outside of regular business hours. If voluntary efforts require the use of business time, prior approval must be obtained from the staff member’s supervisor.

F. Service as Directors or Officers of Outside Companies

Staff members are not permitted to serve as directors or officers of any outside companies without the prior approval of the Company’s Ethics Officer or Chief Risk Officer. In making any decision on the permissibility of such service in specific situations, management shall carefully evaluate (i) the outside company’s relationship to the Company, if any; (ii) any potential conflict of interest between the Company and the outside company, such as actual or potential similar product lines; and (iii) the extent to which such service would further the interests of the Company and its shareholders. If any staff member has previously accepted any such appointments or positions, he or she must immediately report the same to the Ethics Officer, so that an appropriate decision can be made as to the possible need to discontinue such service. In the case of directors of the Company, any such outside service must be in accordance with such director’s fiduciary duty to the Company and in strict compliance with all applicable laws and regulations.

G. Acting on Behalf of Customers

Staff members are not permitted to act, without the prior written approval of their supervisor, as an executor, administrator, trustee, guardian or conservator, or in any other fiduciary capacity, for a customer of the Company. An exception to this policy may be made if the staff member requests permission to act as a fiduciary for a family member. However, even these situations require the prior written approval of the employee’s supervisor.

Staff members must not sign on customers’ accounts, act as co-renters of customers’ safe boxes, or otherwise represent customers, other than customers related to the staff member by blood or marriage. With respect to accounts of such relatives, staff members should make no decisions outside of normal deposit and check writing activities, i.e., they should not approve overdrafts, waive service charges, etc.

H. Personal Investment Activity

While the Company does not wish to unreasonably limit staff members in their personal investment activities, it is the Company’s policy that no staff member shall, at any time during their employment with the Company, have any direct or indirect investment interest in or business relationship with (whether as a partner, stockholder, employee, independent contractor or otherwise) a competitor, supplier or customer of the Company or with any person or firm with whom the Company has any business relationship. Furthermore, all employees must devote substantially all of their time and effort during normal business hours to the business of the Company. They must not become involved in any off-duty investments which will interfere with the performance of their work. Likewise, they may not enter into any investment transaction which might create, or give the appearance of creating, a conflict of interest between the staff member and the Company or between the Company and any customer or other individual or entity with whom the Company has a business relationship. However, staff members may make investments of a passive nature in any business or venture, provided, however, that the amount of such investment does not exceed one percent (1%) of the issued and outstanding shares or one percent (1%) of the equity interest in such business or venture. In addition, any investment in the securities of a customer must be made in strict accordance with the Company’s Insider Trading Policy, and must be immediately reported to the Ethics Officer or the Chief Financial Officer.

While an exhaustive list of the types of impermissible investments is not practical, all staff members must refrain from directly or indirectly owning or purchasing any of the following:

(i) Real or personal property in which the Company intends to obtain an ownership interest (i.e. through purchase, foreclosure or repossession, or in a fiduciary capacity), unless offered through a third party to the general public.

(ii) Stocks, bonds or other securities which have either been pledged to the Company as collateral, sold by the Company in a fiduciary capacity or issued by any entity indebted to the Company (except publicly traded securities).

(iii) Stock of any business or financial institution, in anticipation of its merger with or acquisition by the Company. Investment in the stock of any financial institution, even though made in good faith and without prior inside knowledge, should be given careful consideration because of the possible adverse publicity to the Company in the event of a subsequent merger with, or acquisition by the Company.

(iv) Trust deeds, mortgages or any other liens against property in which the Company also has a security interest.

(v) Any other investments paralleling or anticipating investment action by the Company.

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In addition, a staff member should not allow a customer to arrange investments for the account of the staff member or his or her immediate family, nor should the staff member become involved in investments sponsored by a customer under circumstances which might create either a conflict of interest or the appearance of such a conflict.

Any staff member who has any question about whether a particular investment falls within the prohibitions of this policy must contact the General Counsel before becoming involved in the investment.

I. Corporate Opportunities

Staff members owe a duty to the Company to advance its legitimate interest when the opportunity to do so arises. Staff members are prohibited from:

• Taking for themselves personal opportunities that are discovered through the use of corporate property, information, or position;

• Using corporate property, information, or position for personal gain; or

• Competing with the Company without prior consent from the Board of Directors.

J. Transactions with Company

Company maintains an extensive system of internal controls in order to provide reasonable assurance that assets are safeguarded and all transactions are properly recorded.

Personal Transactions - Staff members must transact all personal financial business with Company following the same procedures that are used by customers and from the customer side of the window or desk. Staff members are not allowed to handle or approve their own transactions, or transactions on accounts over which they have any ownership interest, control or signing authority. This includes transactions for a business if the employee owns that business. These transactions must be handled by personnel other than the employee for whom the transaction is conducted. Any Employee found transacting personal business for both him or herself and Company will be assumed to be in violation of the Code and internal operating policy and procedures. Monetary and non-monetary transactions must be processed by another employee. This includes but is not limited to transactions such as:

• Loans or any form of credit extension;

• Checks and withdrawals;

• Deposits;

• Changes of address, or

• Changing overdraft limit codes.

If the transaction requires approval, the approval must come from the next higher level of authority. The staff member may not request approval of personal transactions by a co-worker or by anyone you directly or indirectly supervise. Staff member may not directly or indirectly purchase from Company, notes, real or personal property that has been repossessed by Company, unless authorized by the Chief Credit Officer and the Ethics Officer or Chief Risk Officer and pursuant to applicable banking regulations.

Overdrafts, Fees and Service Charges - Staff members may not approve overdrafts or reverse or waive fees or service charges for:

• Employee’s own accounts;

• Accounts in which Employee has an interest;

• Accounts of family members, other relatives and close friends (more than an acquaintance);

• Accounts of members of employee’s household, including roommates and unrelated individuals, or

• Accounts of companies controlled by employee, employee’s family members, other relatives and close friends.

In addition, the decision to pay or waive charges for employee’s own overdraft must not be made by another employee that the staff member directly or indirectly supervise. This policy is intended to prevent situations where one employee could exert either purposeful or inadvertent pressure on another employee to pay an overdraft or waive or reduce charges merely because of their job relationship. The fact that a employee is a treasurer or officer of a corporation, municipality, county, political fund, nonprofit corporation or escrow trustee fund does not warrant or justify rate concessions for personal borrowing or fee waivers on other forms of business which are not available to similarly situated customers.

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K. Employment of Relatives

Employment of related individuals is not prohibited, but not encouraged. However, an applicant for employment must disclose any relationship with a current employee, at the beginning of the application process. It is then, in the discretion of the Manager of Human Resources, the Ethics Officer, the executive officer in charge of that business line, and the CEO or Board if appropriate to determine if the relationship between employees or potential employees, including those not related by blood, creates potential for conflict of interest or a disruption in the workplace. Company may transfer one of the employees or potential employees, or determine that it is not appropriate to hire the applicant due to the conflict. Supervisors should contact the Manager of Human Resources or the Ethics Officer to review the circumstances prior to acting.

An employee should not be placed under the immediate supervision of a relative. In addition, an employee should not be placed in a position in which a relative is otherwise responsible for processing, reviewing, or approving the employee’s transactions, recommendations, or performance.

For purposes of this policy, relatives include, but are not limited to, an employee's parent, grandparent, child, spouse, niece, nephew, uncle, aunt, brother, sister, or stepchild relationships. Relatives also include any parent, grandparent, child, niece, nephew, uncle, aunt, brother, sister, or stepchild relationships of an employee's spouse. As noted above, the policy is not limited to relatives and applies to other covered situations involving actual and potential conflicts of interest, such as a dating relationship.

VI. OTHER STAFF MEMBER ACTIVITIES

A. Personal Finances

All staff members are expected to demonstrate an ability to manage their personal finances in a responsible manner, particularly in the intelligent use of credit. Imprudent personal financial management not only may reflect poorly on the individual’s ability to perform their responsibilities of a financial nature but may also adversely affect the staff member’s job performance. Staff members and their immediate families are generally expected to borrow only from reputable organizations which regularly lend money (except for loans from personal friends and relatives). Staff members may not borrow money from their coworkers, but should discuss any financial emergency with their supervisor.

B. Overdrafts

All employees have an obligation to keep their checking accounts in good order. Executive officers and directors with checking accounts at Bank of Hope are also subject to a flat overdraft prohibition under state and federal insider lending laws and regulations, and could be subject to penalties for violations under Federal Reserve Regulation O. All staff members must remember that any overdraft on his or her account is a serious offense which will not be tolerated and which may result in the checking account being closed. In addition, anyone overdrawing his or her account may be subject to discipline.

C. Lending Practices

(i) The Company’s policy is to maintain prudent lending practices in order to insure an adequate supply of funds for the credit needs of its customers. Any rate concessions shall be primarily based upon borrowers’ creditworthiness and overall relationships with the Company (including related deposits of guarantors, etc.), as well as competitive bank pressures.

(ii) Staff members are not in any way to represent or exercise authority on behalf of the Company, grant direct or indirect accommodations to or make credit recommendations with respect to: members of their families; any individual or organization with which the staff member, or his or her immediate family, is associated or in which the staff member holds any financial interest.

(iii) Federal law prohibits any director, officer or employee of the Company from granting any loan or gratuity to any

public bank examiner or assistant bank examiner, who either examines the Company or has authority to examine the Company.

All directors and executive officers are required to comply with federal and state insider lending laws and regulations, including Federal Reserve Regulation O. Detailed requirements concerning loans to insiders are addressed in a separate policy. Any staff member with a question regarding the propriety of a loan involving an executive officer or director should contact the Chief Credit Officer.

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D. Giving Advice to Customers

Staff members may occasionally be asked by customers to comment upon the legality of a particular transaction. Since the Company cannot practice law or give legal or tax advice, staff members must exercise care in discussing transactions with customers and nothing should be said that might be interpreted as the giving of legal or tax advice.

E. Giving Customers Accurate and Complete Information about all Products and Services

Honesty and fairness require that staff members provide accurate and complete information in dealings with customers and others. The products and services of the Company should be presented accurately and fairly. Any practice, no matter how long-standing or widespread, that involves conveying inaccurate or incomplete information in dealings with others is not acceptable.

Mis-selling is the sale of a product or service to a customer without regard to the customer’s interests, and is prohibited. Mis-selling exposes the Company to regulatory penalties, reputational damage and legal action by customers.

Misrepresentation is providing inaccurate or misleading information about the Company, its products or services that will prevent our customers and stockholders from making an informed decision.

What should staff do?

• For any new product, the assigned manager must complete all required steps and approvals from the board, executive management, risk and legal approval, as needed according to the applicable policy.

• Provide relevant and complete information to customers to ensure that they have the best choice of product options;

• Not sell products or services to customers that do not meet their needs;

• Make every effort to ensure that the customer understands the product and its risks;

• Comply with the Company’s advertising standards and ensure all advertisements are reviewed by the Legal and

• Compliance department before they are launched; and

• Explain the features of each product orally and in writing.

F. Receipt of Legal Documents or Subpoenas

Any staff member who receives a legal document of any kind relating to the Company, including but not limited to subpoenas, requests for documents, demand letters, summonses or correspondence from attorneys that appear to be legal in nature, shall immediately contact the BSA Department for instructions. Under no circumstance shall any staff member release any confidential customer information to any outside party in response to such a request (whether oral or written) without the approval of the BSA Department.

G. Sales Incentive / Referral Programs

The Company has various incentive programs to reward employees who bring in new business. This section provides guidance for specific situations involving incentive programs. If any business practice being followed in your area does not meet these guidelines, the staff member should refuse to participate and should report the inappropriate behavior immediately.

1. Sales to Relatives and Friends - The Company recognizes that relatives and friends are one source of new business.

Within these guidelines, incentive programs generally allow employees to receive credit and any related compensation for legitimate sales to, or referrals of, relatives or friends.

2. Inappropriate Sales - Steering a customer to an inappropriate or unnecessary product to receive sales credit harms the customer and is an unacceptable practice which violates both the spirit and the letter of our incentive programs.

3. Gaming - Gaming is defined as the manipulation and/or misrepresentation of sales or sales reporting in an attempt to receive compensation or to meet sales goals. Any form of “gaming” to receive compensation or to meet sales goals is in direct violation of company policy and will result in corrective action, which may include termination of employment.

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4. Payment Errors - Staff members are expected to check their paychecks for accuracy, and are required to report immediately to their supervisor any overpayment -including, but not limited to, wages, salary, incentive pay, bonuses or any other form of payment. The supervisor will work with the staff member to make appropriate arrangements to reimburse the company. Failure to report discrepancies or to make appropriate repayment arrangements may result in corrective action, which may include termination of employment.

VII. CONFIDENTIALITY

A. Customer Information

In accordance with the Gramm-Leach-Bliley Act (GLBA) of 1999, financial institutions are required to have administrative, technical and physical safeguards for sensitive customer information. As such, safeguarding the confidential financial information concerning the Company’s customers is essential to maintaining the public trust. It is the policy of the Company that such confidential information acquired by a staff member through his or her employment must be held in the strictest confidence. Such information is to be held for Company purposes only and not as a basis for personal gain by any staff member. Such information must also be protected from misuse that could result in identity theft. Aside from routine credit inquires, information regarding a customer may generally only be released to private persons, organizations or governmental bodies that request it with the consent of the customer involved or upon receipt of legal process, such as a subpoena or court order. Information obtained about any Bank customer from any record of the Bank shall not be disclosed. This provision continues regardless of whether the individual who obtains the information ceases employment with the Bank.

Confidential customer information should never be discussed with anyone outside the Company, and only with those within the Company who have a legitimate business need to know. Such information should never be discussed in public places, even within the Company's offices. Staff members should be sensitive to the risk of inadvertent disclosure resulting from open doors, speakerphones, cellular phones, and when transmitting confidential information by fax or other electronic media.

Lending personnel must not disclose confidential information on existing or proposed loan customers to investment personnel without the prior consent of the customer, which shall either be obtained in writing or noted on the requisite Conversation Log.

B. Information Regarding the Company

Financial or other information regarding the Company, its operations, its customers or any aspect of its business may not to be released to any outside person or organization unless it has been published in reports to shareholders, otherwise made available to the public through authorized news releases. All news media inquiries must be referred to the President, the Chief Operating Officer or the Chief Financial Officer. The Company expects every employee to treat information concerning the Company and its personnel with the same confidentiality as information concerning customers of the Company and to observe, with respect to the Company, the same guidelines set forth in Paragraph A above.

C. Confidentiality Agreements

All employees will be required to sign and adhere to the Bank’s Confidentiality Agreement as a condition of their employment, and to certify annually that they have complied with all provisions of the Code relating to confidential information since the date of the last certification.

VIII. INSIDER TRADING

Staff members are frequently entrusted with possession of confidential and highly sensitive information concerning the Company and/or its customers. As long as a staff member is aware of “material non-public information” relating to the Company or any of its customers, such staff member may not buy or sell the securities of the Company or such customer, regardless of how that information was obtained. “Material non-public information” is any information which could reasonably be expected to affect the price of a company’s stock. Equally important, the staff member must maintain such material non-public information in the strictest of confidence.

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Details on insider trading restrictions, the consequences of violating such restrictions, and special requirements for transactions (including stock option exercises) involving the Company's stock are documented in the Company's Insider Trading Policy. All staff members have received copies of either the Insider Trading Policy or a Summary thereof, and are responsible for complying with all of its requirements. The Insider Trading Policy applies not only to the Company’s officers, directors and employees but also to such persons’ spouses, minor children, other relatives who live in their households, and trusts or companies which such persons control or as to whose shares of the Company’s stock such persons otherwise enjoy beneficial ownership.

IX. COMPLIANCE AND ENFORCEMENT PROCEDURES

A. Complaints or Concerns Regarding Accounting or Auditing Matters

A link to the Company’s Whistleblower Policy regarding complaints concerning accounting and auditing matters can be found on the Company intranet home page.

Any employee of the Company may submit a good faith complaint regarding accounting for auditing matters to the management of the Company without fear of dismissal or retaliation of any kind. The Company is committed to achieving compliance with all applicable securities laws and regulations, accounting standards, accounting controls and audit practices. The Audit Committee will oversee treatment of employee concerns in this area.

In order to facilitate the reporting of employee complaints, the Audit Committee has established the intranet submittal process for (1) the receipt, retention and treatment of complaints regarding accounting, internal accounting controls, or auditing matters (“Accounting Matters”), (2) the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters which links directly to the Chairman of the Audit Committee.

You may use the Whistleblower Hotline at 888 582 8811 to report any complaint related to accounting for auditing matters.

B. Reporting of Other Unusual, Suspicious or Illegal Activity or Suspected Violations of the Code of Ethics and Business Conduct and Protection Against Retaliation

What Must Be Reported. Directors, officers and employees must promptly report any unusual, suspicious or illegal activity or suspected violations of this Code. Failure to report a violation can lead to disciplinary action against the person who failed to report the violation which may be as severe as the disciplinary action against the person who committed the violation. Unusual, suspicious or illegal activity may include illegal acts (such as fraud or misappropriation of funds), harassment or coercive acts, obstruction of proper bank reporting, violations of the Bank Secrecy/USA Patriot Act (such as money laundering, funds transfers to specially designated nationals or structuring transactions to avoid reporting requirements), or any other violations of the Code of Ethics and Business Conduct.

If a staff member believes that he or she has violated the Code or any applicable law or regulation, he or she must report the violation so that the Company can take appropriate action. The fact that the staff member has reported the violation will be given consideration in determining appropriate disciplinary action, if any. In many cases, a prompt report of a violation can substantially reduce the adverse consequences of a violation for all involved.

If a staff member becomes aware that another employee, of whatever level of seniority, has, in all likelihood, violated the Code, including any law or regulation applicable to the Company's businesses, that staff member has a duty to report that violation so that the Company can take steps to rectify the problem and prevent a recurrence. The staff member has a duty to report the suspected violation as long as he or she believes that a violation occurred. Absolute certainty is not the standard. If a staff member has any question about his or her obligation in a particular situation, he or she should contact his or her immediate supervisor or the Ethics Officer.

Reporting Procedures. Normally, (except in the case of auditing or accounting related matters, which are discussed in Section IX.A. above) a suspected violation of this Code by an employee other than an officer of the Company should be reported to the supervisor of the employee who commits the violation. Suspected violations by an employee concerning the Bank Secrecy/USA Patriot Act should be reported immediately to the employee’s supervisor, who will in turn report the violation directly to the Bank’s BSA Officer. However, a staff member may instead report the possible violation to his or her own supervisor or to the Ethics Officer. Any supervisor who receives a report of suspicious or illegal activity from a staff member must immediately notify the Ethics Officer.

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A suspected violation of this Code by a director or an officer of the Company should be reported to the Chief Executive Officer. However, if a staff member believes that in a particular situation it would not be appropriate to report a possible violation by a director or officer to the CEO, the staff member may report the possible violation to the Chairman of the Audit Committee, or to any other officer or director of the Company to whom the employee believes it would be appropriate to report the possible violation.

Reports made by staff members may be anonymous, at the choice of the individual making the report. All reports made under these procedures will be handled with the maximum degree of confidentiality, and information from the report will be shared only to the extent necessary to conduct a complete and fair investigation. All such reports will be promptly reviewed and resolved.

Protection Against Retaliation. Retaliation in any form against an individual who makes a good faith report of a suspected violation of this Code or of law (even if the report is mistaken), or against anyone who assists in the investigation of a reported violation, is itself a serious violation of this Code. Acts of retaliation will not be tolerated and should be reported immediately. The Ethics Officer, the Nomination and Governance Committee or the Audit Committee, as appropriate (depending on the nature of the allegations and positions of the individuals involved) will conduct a full investigation and will take appropriate disciplinary action against anyone engaging in retaliatory conduct.

In addition, any staff member who discourages or prevents other staff members from making such reports or seeking the help or assistance they need, will be subject to disciplinary action.

False Accusations. It is very important that the process for reporting suspected violations not be used improperly or in bad faith to make false accusations against any Company personnel. However, since the Company wants to encourage employees to come forward when they suspect that inappropriate conduct has occurred, it will not take disciplinary action against a staff member for coming forward unless there is evidence that the staff member knowingly provided false information. The mere fact that a staff member’s suspicions prove to be unfounded will not lead to discipline.

The Company will make every effort to assure that complaints are investigated thoroughly and that no disciplinary actions are taken based solely on unsubstantiated allegations. Particularly in the case of anonymous allegations, any disciplinary actions must be based upon documentary or other corroborating evidence of misconduct, and the subject of the investigation must be given an opportunity to provide an explanation of any suspicious circumstances if desired. However, the decision by the Ethics Officer, the Compensation Committee or the Audit Committee, as appropriate (again depending on the individuals and allegations involved), after conducting its investigation, will be final and binding.

C. Investigating Violations

With respect to any suspected violations not involving accounting or audit related matters, the Ethics Officer together with appropriate members of management, and legal counsel, if necessary, shall develop and maintain standard procedures for documenting all allegations received, evaluating and investigating allegations and documenting the conclusions of that process. The Compensation Committee shall receive at least annually, or more often as the Ethics Officer deems appropriate, a list of all such alleged violations and the outcome of the inquiry or investigation thereof and shall have access to all reports prepared regarding alleged violations of this Code.

Any suspected violations or concerns regarding accounting or audit related matters will be investigated promptly and directly by the Audit Committee in accordance with Section IX (A) above.

D. Disciplinary Action

The Company shall consistently enforce this Code of Ethics and Business Conduct through appropriate means of discipline. Suspected violations of the Code involving auditing or accounting related matters shall be promptly reported to the Audit Committee. The Audit Committee shall determine, through consistently enforced procedures, whether violations of the Code have occurred and, if so, shall determine the disciplinary measures to be taken against any employee or agent of the Company who has violated the Code. In the case of suspected violations not involving auditing or accounting related matters, similar procedures shall be enforced by the Ethics Officer, in consultation with the Compensation Committee or outside counsel, if necessary, depending on the position or level of the individual involved.

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The disciplinary measures, which may be invoked at the discretion of the Audit Committee, the Compensation Committee or the Ethics Officer, as appropriate, include, but are not limited to, counseling, oral or written reprimands, warnings, probation or suspension without pay, demotions, reductions in salary, termination of employment and restitution.

Among other things, and without limitation to the following, directors, officers and employees may be disciplined for:

• Committing, authorizing, or directing an illegal act.

• Failing to exercise proper compliance oversight, tolerating illegal conduct, or approving or condoning violations, if acting as a supervisor of another employee of the Company.

• Failing to report illegal business conduct or violations of the Code of which he or she directly knows or observes.

• Discouraging another director, officer, or employee from reporting a violation of law or of this Code of Ethics and

• Business Conduct.

• Improperly disclosing the identity of a person who reports a violation of this Code.

• Withholding material information regarding a violation when requested to provide such information.

• Retaliating or condoning retaliation against any director, officer, or employee of the Company who reports such a violation.

As examples, the following are not valid excuses for failing to comply with the law and/or the Code and, as such, will not avoid disciplinary measures under this Code:

• "A supervisor demanded that I do the illegal, unethical or improper act."

• "I thought the conduct was standard practice in our business."

• "It was a business necessity because it would have cost more to act properly."

• "I misinterpreted the law or this Code and did not seek the advice of the Chief Risk Officer."

X. WAIVERS

Any waivers of this Code for executive officers or directors may be made only by the Board of Directors of the Company upon the recommendation of its Audit Committee, and must be promptly filed and/or disclosed to the public as required by all applicable securities or other laws, rules or regulations or the requirements applicable to any exchange or system upon which Company’s securities are listed, quoted or traded. Any waivers of this Code for other personnel may be made by the Ethics Officer.

XI. PRIVACY

In order to assure access at all times to Company property, and because employees may not always be available to produce various documents, records, files, or other items in their possession in the ordinary course of business, the Company reserves the right to conduct inspections or searches of the Company's premises at any time without the consent of and without advance notice to the employee.

The Company's premises include all locations owned or leased by the Company or under the control of the Company, including office space, parking lots, closets, storage areas, and lockers. Company property includes all tangible and intangible personal property of the Company, including without limitation, all furniture, equipment, file cabinets, computer hardware and software, licenses and copyrights. The foregoing includes all communications and transmissions of any kind, including all information stored on any hardware, software, removable media, voice mail, e-mail, and all other communication media.

Searches and inspections may include an employee's office, desk, file cabinets, closet, locker, computer files, whether contained on a hard drive or removable media, including past and present e-mail communications, and similar places where the Company property may be located, whether or not such places are locked.

Employees are prohibited from using the code of another employee to gain access to that individual's e-mail, voice mail, or computer system.

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XII. E-MAIL/INTERNET POLICY

The Company promotes the use of advanced technology and provides employees with access to e-mail, the Internet, and the world wide web (collectively, "on-line services").

Although occasional use of on-line services for personal, non-business use is acceptable, employees are not allowed to use them for any significant amount of personal use.

Employees must respect the confidentiality of all on-line service communications and may not read, revise, or monitor the communications of other employees or third parties, including customers, except with the approval of management. However, as stated above, employees must recognize that their own usage of on-line services is subject to review by the Company and, therefore, is not confidential as to management.

All messages and information sent by an employee to others, including customers, via on-line services may reflect on the Company. Employees are prohibited from using the Company's on-line services in any way that might be considered disruptive or offensive to others, including customers and vendors.

Inappropriate transmission includes, but is not limited to, sexually explicit messages, offensive language, and ethnic, racial, and gender-specific slurs. Any employee who abuses the privilege of access to and use of on-line services may be subject to disciplinary action up to and including discharge.

The Company reserves the right to review all electronic files and messages and to monitor usage to the extent necessary to ensure that on-line services are used in compliance with the law and with the Company's policy. Employees must provide reasonable assistance to the Company if so requested as part of such monitoring, and expressly waive any personal right to privacy with respect to any electronic files or messages contained on any Bank computer or server.

Employees (other than those specifically authorized by the Company to monitor electronic files and communications in accordance with the previous paragraph) must respect the confidentiality of all on-line service communications and may not read, revise, or monitor the communications of other employees or third parties, including customers, except with the approval of management. However, as stated above, employees must recognize that their own usage of on-line services is subject to review by the Company and, therefore, is not confidential as to the Company.

Further details on this subject are documented in the Company's End User Computing Agreement. It is the responsibility of each employee to read, become familiar with, and abide by, the contents of that policy and procedures.

XIII. MISCELLANEOUS GUIDELINES FOR CONDUCT

A. Use of Company Letterhead and Name

Staff members are not permitted to use official stationery for either personal correspondence or other non-job related purposes. They must exercise care and good judgment to avoid the use of the Company’s name in any manner that may imply endorsement by the Company of any outside activity or product, or make reference that they are an employee of Hope Bancorp, Inc. or Bank of Hope in matters of personal dispute.

B. Dealings with Competitors

The policy of the Company is to require staff members to observe fair and ethical conduct in dealing with the Company’s competitors. The making of disparaging remarks regarding the Company’s competitors is considered to be unprofessional and inappropriate. In addition, circulating false rumors about a financial institution’s condition is a felony. The Company’s strategy is to emphasize the quality and competence of its staff and services. Staff members are prohibited from involving the Company in arrangements with its competitors which provide for the setting or controlling of rates, prices or marketing policies. Employees may not disclose or use confidential information obtained from any competitor without the consent of the competitor. Staff members shall also comply with the provisions of the Code concerning confidentiality in any discussions they may have with competitors.

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C. Exclusive Dealings (Anti-Tying)

It is the policy of the Company that it does not condition the sale of services to a customer upon the requirement that the customer purchase other services from the Company or refrain from dealing with other suppliers of such services. Tying the availability of credit to the purchase of insurance offered by the financial institution or one of its affiliates is prohibited under federal law. However, such tying prohibitions do not prevent an institution from informing a customer that insurance is required in order to obtain a loan or that loan approval in contingent on the customer obtaining acceptable insurance.

D. Obstruction of Normal and Sound Banking Practice

Structuring of transactions, especially cash transactions, on behalf of customers or relatives to avoid CTR filing by the bank is strictly prohibited. Any type of obstruction to prevent adverse reporting by the bank to state or federal agencies will result in the immediate dismissal of all involved. Willful blindness by a bank officer to money laundering activities is a crime under 18

USC 1956 and 1957, punishable by fines up to $500,000 and incarceration of up to five years. Detailed information concerning CTRs and related matters is contained in the Bank’s BSA Policy

E. Improper Influence and/or Harassment

As described more fully in the Company’s Employee Handbook, improper influence or harassment, including sexual harassment of employees is strictly prohibited. The Company will not tolerate any coercion or harassment of an employee, including sexual harassment, any use of influence to participate in illegal or improper activity, or any other improper acts. Any such activity will subject the offending employee to immediate dismissal.

This Code of Ethics and Business Conduct augments the Employee Handbook. Staff members are to acknowledge their understanding by signing and dating such on the next page and returning this acknowledgement to the Chief Risk Officer.

XIV. ACKNOWLEDGEMENT AND ANNUAL CERTIFICATIONS

All staff members must acknowledge their understanding of this Code by signing and dating the Receipt and Acknowledgement which is attached hereto as Exhibit “A” and returning this acknowledgement to the Ethics Officer. Staff members will also be required to certify annually, and whenever the Code is amended and re-presented to them, (i) that they are familiar with the Code and provisions therein concerning disciplinary measures which may be taken for violations of the Code, (ii) that they have complied with all provisions of the Code relating to confidential information since the date of the last certification and to the best of their knowledge have not violated any other provisions of the Code during that time; and (iii) that they are not aware of any violations of the Code by any other staff members during that time. The form of annual certification, titled “Statement of Personal Interest,” is attached hereto as Exhibit “B.”

XV. AMENDMENTS

The Code may be amended from time to time by action of the Board of Directors. The Company shall promptly notify all staff members of any material amendments, and shall promptly post all amendments on the Company’s website.

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Exhibit A

RECEIPT AND ACKNOWLEDGEMENT CONCERNING

CODE OF ETHICS & BUSINESS CONDUCT

I acknowledge that I have received the Code of Ethics and Business Conduct for Hope Bancorp, Inc., and Bank of Hope (collectively, the “Company”). I acknowledge my obligation to read, understand, and abide by its contents. I further acknowledge and agree that:

The Code of Ethics and Business Conduct is intended to provide a general overview of the Company’s Code of Ethics and Business Conduct and does not necessarily represent all such policies and practices in force at any particular time. It is, however, my obligation to comply with any and all current and/or future written or verbal policies, practices, rules, regulations, and directives issued by the Company. It is also my obligation to contact either my supervisor, the Ethics Officer, the Chief Financial Officer, or the Chairman of the Audit Committee, as appropriate, if I have any questions whatsoever concerning the Code of Ethics and Business Conduct or the propriety of any behavior or situation concerning the Company.

I understand and acknowledge that I have a duty to report any violations to one of the individuals identified in the preceding paragraph

Neither this Code of Ethics and Business Conduct nor any other official or unofficial written or verbal statement or practices of the Company creates, or is intended to create, an express or implied contract, covenant, promise, or representation that employment, nor any particular assignment or position, will continue for any specified period of time.

The Company reserves the sole right to add, revise, or rescind any policy, practice, benefit, assignment, position, work schedule, wage or any other working condition at any time except that any such modification shall not alter my right nor the right of the Company to terminate employment at-will.

No officer, manager, employee, or representative of the Company other than the Board of Directors has authority to enter into any valid or binding agreement different than what is stated in this acknowledgement. To be valid, any such agreement must be in writing and adopted by the Board of Directors.

ACKNOWLEDGED AND AGREED:

___________________________

Date

___________________________

Print Name    

___________________________

Signature

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Exhibit B

STATEMENT OF PERSONAL INTEREST

I have read and understand Company’s Code of Ethics and Business Conduct. In compliance with the reporting requirements of these guidelines, I complete this statement concerning my personal business interests honestly and accurately:

“You” means you and any member of your immediate family. Each "YES" answer must be explained at the end of this questionnaire or on an attached sheet.

1. Are you a stockholder or interested financially in any way with: - A competing institution (e.g., bank, savings and loan, finance company, etc.)? - A supplier of goods or services Landlord of the Company or other business contact with Company?	☐ YES ☐ NO ☐ N/A
2. Have you accepted any gift of a value in excess of $100 from customers, suppliers, broker or vendor	☐ YES ☐ NO ☐ N/A
If the answer to 2 above is “YES," have you reported the gift(s) to your supervisor?	☐ YES ☐ NO ☐ N/A
3. Have you solicited for yourself or a third party, other than Company or its agents, anything of value from anyone in return for any business, service, or confidential information of Company?	☐ YES ☐ NO ☐ N/A
4. Have you accepted anything of value directly or indirectly from anyone in connection with the business of the Company	☐ YES ☐ NO ☐ N/A
5. Do you have outside employment which has not been previously approved as required by provisions of the guidelines?	☐ YES ☐ NO ☐ N/A
6. Have you received any compensation for acting as a director, officer, trustee, or consultant of an outside organization?	☐ YES ☐ NO ☐ N/A
7. Have you borrowed money from customers or vendors of the Company, other than recognized lending institutions, in an arm’s length transaction?	☐ YES ☐ NO ☐ N/A
8. Have you accepted an appointment as an executor, trustee, guardian, or conservator, for other than those of your immediate family?	☐ YES ☐ NO ☐ N/A
9. Do you have any relatives who currently work for Bank of Hope?	☐ YES ☐ NO ☐ N/A
10. Have you extended credit on behalf of Company or otherwise influenced the extension of credit to: - A customer where the proceeds were used to pay a debt owing to you or a member of your immediate family? - A customer who is your relative? - An individual to finance the purchase of real estate or personal property from you? - A firm in which you or a member of your immediate family has a financial interest or with which you are employed on a part-time or consulting basis?	☐ YES ☐ NO ☐ N/A
11. Have you cosigned, endorsed, or otherwise assumed liability in connection with the borrowing of any customer, vendor or supplier?	☐ YES ☐ NO ☐ N/A
12. Do you sign on any customer accounts, act as deputy or co-tenant of a customer's safe deposit box, or otherwise represent customers, except for family members?	☐ YES ☐ NO ☐ N/A
13. Have you taken for your own benefit any opportunity or information which rightfully belongs to the Company?	☐ YES ☐ NO ☐ N/A
14. Do you have any business relationship with any present or former loan or deposit customer of Company, of which you are aware? (Offered to or completed transaction to purchase a business or piece of real property from a loan or deposit customer.)	☐ YES ☐ NO ☐ N/A

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15. Have you solicited any business relationship with any present or former loan or deposit customer of Company, of which you are aware?	☐ YES ☐ NO ☐ N/A
16. Have you ever disclosed to anyone confidential material non-public information regarding        Company or its customers in violation of the Regulation FD Fair Disclosure Policy, or        otherwise?	☐ YES ☐ NO ☐ N/A
17. Have you participated in any dealings with competitors for the purpose of setting prices,         interest rates, and trade practices or marketing policies?	☐ YES ☐ NO ☐ N/A
18. Have you withheld information or knowingly not notified proper Senior Officers of any        wrongdoing, including violations of laws, regulations, or Company policies?	☐ YES ☐ NO ☐ N/A
19. Have you offered, extended, or in any way participated in the extension of a bribe to a        political party, party official, or candidate for political office for the purpose of obtaining,        retaining, or directing business to Company?	☐ YES ☐ NO ☐ N/A
20. Are there circumstances or any other matters of a personal or family nature that could        reasonably be subject to question as to their effect on the interests of Company?	☐ YES ☐ NO ☐ N/A
21. Have you ever traded in Company securities outside of the Trading Window?	☐ YES ☐ NO ☐ N/A
22. Have you ever traded in Company securities while in possession of material non-public        information?	☐ YES ☐ NO ☐ N/A

In compliance with the provisions of Company's Code of Ethics and Business Conduct, I wish to disclose the following information (indicate item number from above, dollar value, number of shares, etc. as appropriate):

(Use additional blank sheets as needed and attach to this document)

COMPLETED BY:

Print Name

Signature

Branch/Dept

Date

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EX-21.1

EXHIBIT 21.1

HOPE BANCORP, INC.

LIST OF WHOLLY OWNED SUBSIDIARIES

1. Bank of Hope, a California state chartered commercial bank

2. Nara Capital Trust III

3. Nara Statutory Trust IV

4. Nara Statutory Trust V

5. Nara Statutory Trust VI

6. Center Capital Trust I

7. Wilshire Statutory Trust II

8. Wilshire Statutory Trust III

9. Wilshire Statutory Trust IV

10. Saehan Capital Trust I

11. Hope Scholarship Foundation

EX-23.1

EXHIBIT 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Hope Bancorp, Inc.:

We consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-179241, 333-145014, and 333-213200) of Hope Bancorp, Inc. of our report dated March 1, 2018 relating to the consolidated financial statements and effectiveness of internal control over financial reporting appearing in this Annual Report on Form 10-K of Hope Bancorp, Inc. for the year ended December 31, 2017.

/s/ Crowe Horwath, LLP

Los Angeles, California

March 1, 2018

EX-23.2

EXHIBIT 23.2

Consent of Independent Registered Public Accounting Firm

Hope Bancorp, Inc.

Los Angeles, California

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-179241, 333-145014, and 333-213200) of Hope Bancorp, Inc. and subsidiaries of our report dated May 17, 2017, relating to the consolidated financial statements, which appear in the this Form 10-K.

/s/ BDO USA, LLP

Los Angeles, California

March 1, 2018

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Kevin S. Kim, certify that:

1. I have reviewed this periodic report on Form 10-K of Hope Bancorp, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrants' board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: March 1, 2018 /s/ Kevin S. Kim

_______________________________

Kevin S. Kim

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Alex Ko, certify that:

1. I have reviewed this periodic report on Form 10-K of Hope Bancorp, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrants' board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 1, 2018 /s/ Alex Ko

_______________________________

Alex Ko

Executive Vice President and Chief Financial Officer                        

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 906 OF THE

PUBLIC COMPANY ACCOUNTING REFORM AND INVESTOR PROTECTION ACT OF 2002

In connection with the periodic report of Hope Bancorp, Inc. (the “Company”) on Form 10-K for the period ended December 31, 2017, as filed with the Securities and Exchange Commission (the “Report”), I, Kevin S. Kim, President and Chief Executive Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that:

(1)    the Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

(2)    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Dated: March 1, 2018

/s/ Kevin S. Kim

__________________________

Kevin S. Kim

President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE

PUBLIC COMPANY ACCOUNTING REFORM AND INVESTOR PROTECTION ACT OF 2002

In connection with the periodic report of Hope Bancorp, Inc (the “Company”) on Form 10-K for the period ended December 31, 2017, as filed with the Securities and Exchange Commission (the “Report”), I, Alex Ko, Chief Financial Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that:

     (1)    the Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

     (2)    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Dated: March 1, 2018

/s/ Alex Ko

_______________________________

Alex Ko

Executive Vice President and

Chief Financial Officer        

XML

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 21, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Entity Registrant Name	HOPE BANCORP INC
Entity Central Index Key	0001128361
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		135,523,974
Entity Public Float			$ 2,408,992,339
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

Consolidated Statements Of Financial Condition - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Cash and cash equivalents:
Cash and due from banks	$ 185,527,000	$ 168,827,000
Interest-bearing cash in other banks	306,473,000	268,507,000
Total cash and cash equivalents	492,000,000	437,334,000
Interest-bearing deposits in other financial institutions and other investments	53,366,000	44,202,000
Securities available for sale, at fair value	1,720,257,000	1,556,740,000
Loans held for sale, at the lower of cost or fair value	29,661,000	22,785,000
Loans receivable (net of allowance for loan losses of $84,541 and $79,343 at December 31, 2017 and December 31, 2016, respectively)	11,018,034,000	10,463,989,000
Other real estate owned (“OREO”), net	10,787,000	21,990,000
Federal Home Loan Bank (“FHLB”) stock, at cost	29,776,000	21,964,000
Premises and equipment, net	56,714,000	55,316,000
Accrued interest receivable	29,979,000	26,880,000
Deferred tax assets, net	55,203,000	88,110,000
Customers’ liabilities on acceptances	1,691,000	2,899,000
Bank owned life insurance (“BOLI”)	74,915,000	73,696,000
Investments in affordable housing partnerships	81,009,000	70,059,000
Goodwill	464,450,000	462,997,000
Core deposit intangible assets, net	16,523,000	19,226,000
Servicing assets	24,710,000	26,457,000
Other assets	47,642,000	46,778,000
Total assets	14,206,717,000	13,441,422,000
LIABILITIES:
Noninterest bearing	2,998,734,000	2,900,241,000
Interest bearing:
Money market and NOW accounts	3,332,703,000	3,401,446,000
Savings deposits	240,509,000	301,906,000
Time deposits of more than $250,000	1,279,108,000	1,077,024,000
Other time deposits	2,995,555,000	2,961,418,000
Total deposits	10,846,609,000	10,642,035,000
FHLB advances	1,157,693,000	754,290,000
Federal funds purchased	69,900,000	0
Subordinated debentures	100,853,000	99,808,000
Accrued interest payable	15,961,000	10,863,000
Acceptances outstanding	1,691,000	2,899,000
Commitments to fund investments in affordable housing partnerships	38,467,000	24,409,000
Other liabilities	47,288,000	51,645,000
Total liabilities	12,278,462,000	11,585,949,000
STOCKHOLDERS’ EQUITY:
Common stock, $0.001 par value; authorized 150,000,000 shares at December 31, 2017 and December 31, 2016; issued and outstanding, 135,511,891 and 135,240,079 shares at December 31, 2017 and December 31, 2016, respectively	136,000	135,000
Additional paid-in capital	1,405,014,000	1,400,490,000
Retained earnings	544,886,000	469,505,000
Accumulated other comprehensive loss, net	(21,781,000)	(14,657,000)
Total stockholders’ equity	1,928,255,000	1,855,473,000
Total liabilities and stockholders’ equity	$ 14,206,717,000	$ 13,441,422,000

XML

Consolidated Statements Of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Loans receivable, allowance	$ 84,541	$ 79,343
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	135,511,891	135,240,079
Common stock, shares outstanding	135,511,891	135,240,079

XML

Consolidated Statements Of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
INTEREST INCOME:
Loans, including fees	$ 529,760	$ 392,127	$ 291,344
Securities	36,917	25,442	18,611
Interest-bearing deposits in other banks and other investments	5,427	4,365	3,705
Total interest income	572,104	421,934	313,660
INTEREST EXPENSE:
Deposits	74,902	48,091	33,412
FHLB advances and federal funds purchased	10,706	7,560	5,645
Other borrowings	5,116	2,928	1,561
Total interest expense	90,724	58,579	40,618
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	481,380	363,355	273,042
PROVISION FOR LOAN LOSSES	17,360	9,000	8,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	464,020	354,355	265,042
NONINTEREST INCOME:
Service fees on deposit accounts	20,619	15,964	12,206
International service fees	4,494	3,693	3,448
Loan servicing fees, net	5,433	3,519	3,135
Wire transfer fees	5,057	4,326	3,632
Net gains on sales of SBA loans	12,774	8,750	12,665
Net gains on sales of other loans	2,927	2,920	270
Net gains on sales or called securities available for sale	301	950	424
Other income and fees	14,810	11,697	7,911
Total noninterest income	66,415	51,819	43,691
NONINTEREST EXPENSE:
Salaries and employee benefits	144,669	107,944	84,899
Occupancy	28,587	24,574	19,391
Furniture and equipment	14,643	11,726	9,245
Advertising and marketing	10,281	7,320	5,090
Data processing and communication	12,179	11,403	9,179
Professional fees	14,954	6,556	5,585
FDIC assessments	5,173	4,165	4,088
Loss on Investments in Affordable Housing Partnership	13,862	4,100	1,442
Credit related expenses	582	2,954	1,924
Other Real Estate Expense	3,100	2,492	1,523
Merger and integration expense	1,781	16,914	1,540
Other	16,790	14,827	9,478
Total noninterest expense	266,601	214,975	153,384
INCOME BEFORE INCOME TAX PROVISION	263,834	191,199	155,349
INCOME TAX PROVISION	124,389	77,452	63,091
NET INCOME	$ 139,445	$ 113,747	$ 92,258
EARNINGS PER COMMON SHARE
Basic (in dollars per share)	$ 1.03	$ 1.10	$ 1.16
Diluted (in dollars per share)	$ 1.03	$ 1.10	$ 1.16

XML

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 139,445	$ 113,747	$ 92,258
Other comprehensive loss:
Change in unrealized losses on securities available for sale and interest only strips	(5,796)	(21,273)	(5,717)
Reclassification adjustments for gains realized in income	(301)	(950)	(424)
Less tax effect	(2,570)	(9,398)	(2,604)
Change in unrealized (losses) gains on securities available for sale and interest only strips	(3,527)	(12,825)	(3,537)
Total comprehensive income	$ 135,918	$ 100,922	$ 88,721

XML

Consolidated Statements Of Changes In Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in capital	Retained Earnings	Accumulated Other Comprehensive Income (loss), net
Balance, shares at Dec. 31, 2014		79,503,552
Balance at beginning of period at Dec. 31, 2014	$ 882,773	$ 79	$ 541,589	$ 339,400	$ 1,705
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of business	116		116
Redemption of stock warrant	(1,150)		(1,150)
Issuance of additional shares pursuant to various stock plans, shares		56,235
Issuance of additional shares pursuant to various stock plans	(21)	$ 1	(22)
Tax effects of stock plans			17
Stock-based compensation	1,046		1,046
Issuance of Hope stock options in exchange for acquiree, shares		6,569
Cash dividends declared on common stock ($0.50 per share)	(33,407)			(33,407)
Comprehensive income:
Net income	92,258			92,258
Other Comprehensive Income (Loss), Net of Tax	(3,537)				(3,537)
Balance, shares at Dec. 31, 2015		79,566,356
Balance at end of period at Dec. 31, 2015	938,095	$ 80	541,596	398,251	(1,832)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of business	852,938	$ 55	852,883
Issuance of additional shares pursuant to various stock plans, shares		179,997
Issuance of additional shares pursuant to various stock plans	1,171		1,171
Tax effects of stock plans	79		79
Stock-based compensation	$ 1,391		$ 1,391
Issuance of Hope stock options in exchange for Wilshire stock options	3,370,000		3,370,000
Issuance of Hope stock options in exchange for acquiree, shares		55,493,726
Cash dividends declared on common stock ($0.50 per share)	$ (42,493)			(42,493)
Comprehensive income:
Net income	113,747			113,747
Other Comprehensive Income (Loss), Net of Tax	(12,825)				(12,825)
Balance, shares at Dec. 31, 2016		135,240,079.000
Balance at end of period at Dec. 31, 2016	1,855,473	$ 135	$ 1,400,490	469,505	(14,657)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of additional shares pursuant to various stock plans, shares		271,812
Issuance of additional shares pursuant to various stock plans	1,865	$ 1	1,864
Stock-based compensation	2,660		2,660
Cash dividends declared on common stock ($0.50 per share)	(67,661)			(67,661)
Reclassification of stranded tax effects to retained earnings - ASU 2018-02	0			3,597	(3,597)
Comprehensive income:
Net income	139,445			139,445
Other Comprehensive Income (Loss), Net of Tax	(3,527)				(3,527)
Balance, shares at Dec. 31, 2017		135,511,891
Balance at end of period at Dec. 31, 2017	$ 1,928,255	$ 136	$ 1,405,014	$ 544,886	$ (21,781)

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Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES (net of acquisition)
Net income	$ 139,445	$ 113,747	$ 92,258
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, amortization, and accretion	(14,903)	(1,569)	(4,530)
Stock-based compensation expense	3,161	2,967	1,046
Provision for loan losses	17,360	9,000	8,000
(Credit) provision for unfunded loan commitments	(2,358)	179	381
Valuation adjustment of premises held for sale	1,084	0	0
Valuation adjustment of OREO	2,041	2,228	1,267
Impairment of investments in affordable housing partnership	(4,846)	0	0
Net gains on sales of SBA and other loans	(15,701)	(11,670)	(12,935)
Earnings on BOLI	(1,219)	(1,438)	(1,091)
Net change in fair value of derivatives	78	443	0
Net (gains) losses on sale and disposal of premises and equipment	(868)	176	64
Net (gains) losses on sales of OREO	(79)	16	(1,147)
Net gains on sales or called securities available for sale	(301)	(950)	(424)
Losses on investments in affordable housing partnership	10,266	4,100	1,442
Net change in deferred income taxes	34,740	5,750	(1,376)
Proceeds from sales of loans held for sale	310,345	239,203	171,229
Originations of loans held for sale	(276,537)	(219,779)	(140,466)
Origination of servicing assets	(5,492)	(4,472)	(4,900)
Change in accrued interest receivable	(3,099)	(2,459)	(1,561)
Change in other assets	(1,987)	16,418	(4,237)
Change in accrued interest payable	5,098	2,247	152
Change in other liabilities	(1,999)	(23,532)	4,920
Net cash provided by operating activities	203,921	130,605	108,092
CASH FLOWS FROM INVESTING ACTIVITIES (net of acquisition)
Net cash received from acquisition - Wilshire Bancorp, Inc.	0	100,127	0
Purchase of interest bearing deposits in other financial institutions and other investments	(30,477)	(2,962)	(44,001)
Proceeds from maturity of interest bearing deposits in other financial institutions and other investments	21,313	13,465	490
Purchase of securities available for sale	(572,528)	(553,336)	(397,885)
Proceeds from matured, called, or paid-down securities available for sale	264,730	238,605	146,407
Proceeds from sales of securities available for sale	128,791	217,079	22,510
Proceeds from sales of other loans	417	634	2,893
Net change in loans receivable	(564,536)	(487,961)	(673,899)
Proceeds from sales of OREO	14,802	17,390	11,309
Purchase of FHLB stock	(8,573)	(97)	(150)
Redemption of FHLB stock	761	13,636	9,510
Purchase of premises and equipment	(14,777)	(14,320)	(10,924)
Proceeds from sales of premises and equipment	5,084	0	7
Investments in affordable housing partnerships	(12,342)	(5,616)	(1,261)
Net cash used in investing activities	(767,335)	(463,356)	(934,994)
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	209,477	494,549	647,710
Proceeds from FHLB advances	1,420,000	825,000	350,000
Repayment of FHLB advances and prepayment fees	(1,015,000)	(806,610)	(300,000)
Proceeds from federal funds purchased	69,900	0	0
Cash dividends paid on common stock	(67,661)	(42,493)	(33,407)
Issuance of additional stock pursuant to various stock plans	1,865	1,171	(22)
Tax effects of issuance of shares from various stock plans	0	79	0
Taxes paid in net settlement of restricted stock	(501)	0	0
Redemption of common stock warrant	0	0	(1,150)
Net cash provided by financing activities	618,080	471,696	663,131
NET CHANGE IN CASH AND CASH EQUIVALENTS	54,666	138,945	(163,771)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	437,334	298,389	462,160
CASH AND CASH EQUIVALENTS, END OF YEAR	492,000	437,334	298,389
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	91,081	62,624	40,466
Income taxes paid	104,158	65,726	61,568
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES
Transfer from loans receivable to OREO	7,173	5,646	11,373
Loans transferred to held for sale from loans receivable	429	11,885	685
Loans transferred to loans receivable from held for sale	4,100	9,163	0
Transfer from premises and equipment to premises held for sale	3,300	0	0
Loans to facilitate sale of premises	1,350	0	0
Loans to facilitate sale of OREO	2,300	0	0
New commitments to fund affordable housing partnership investments	26,400	1,327	14,794
Assets acquired from Wilshire	0	4,627,604	0
Liabilities assumed from Wilshire	0	4,130,342	0
Common stock issued in consideration for Wilshire	0	55,493,726	0
Parent Company
CASH FLOWS FROM OPERATING ACTIVITIES (net of acquisition)
Net income	139,445	113,747	92,258
Adjustments to reconcile net income to net cash from operating activities:
Stock-based compensation expense	523	0	0
Change in other assets	665	2,172	717
Net cash provided by operating activities	65,264	38,362	29,792
CASH FLOWS FROM INVESTING ACTIVITIES (net of acquisition)
Net cash received from acquisition - Wilshire Bancorp, Inc.	0	13,248	0
Net cash used in investing activities	0	13,248	0
CASH FLOWS FROM FINANCING ACTIVITIES
Redemption of common stock warrant	0	0	(1,150)
Net cash provided by financing activities	(65,796)	(42,493)	(34,557)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(532)	9,117	(4,765)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	13,859	4,742	9,507
CASH AND CASH EQUIVALENTS, END OF YEAR	$ 13,327	$ 13,859	$ 4,742

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations— Hope Bancorp, Inc. (“Hope Bancorp” on a parent-only basis and the “Company” on a consolidated basis, previously known as BBCN Bancorp, Inc.), headquartered in Los Angeles, California, is the holding company for Bank of Hope (the “Bank,” previously known as BBCN Bank). The Bank has branches in California, Washington, Texas, Illinois, Alabama, Georgia, Virginia, New Jersey, and New York, as well as loan production offices in Atlanta, Dallas, Denver, Portland, Seattle, Newport Beach, Laguna Niguel, and Northern California. Hope Bancorp is a corporation organized under the laws of the state of Delaware and a bank holding company registered under the Bank Holding Company Act of 1956, as amended. The Bank is a California-chartered bank and its deposits are insured by the FDIC to the extent provided by law. The Company specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and business lending, SBA lending and international trade financing.

Principles of Consolidation—The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and conform to practices within the banking industry. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, principally the Bank. Intercompany transactions and balances are eliminated in consolidation.

Cash Flows—Cash and cash equivalents include cash and due from banks, interest-earning deposits, federal funds sold and term federal funds sold, which have original maturities less than 90 days. The Company may be required to maintain reserve and clearing balances with the Federal Reserve Bank under the Federal Reserve Act. The reserve and clearing requirement balance was $0 at December 31, 2017 and 2016. Net cash flows are reported for customer loan and deposit transactions, federal funds purchased, deferred income taxes, and other assets and liabilities.

Interest-Bearing Deposits in Other Financial Institutions and Other Investments—Interest-bearing deposits in other financial institutions and other investments are comprised of the Company’s investments in certificates of deposits that have original maturities greater than 90 days. Other investments are also comprised of the Company’s investment in funds to partially satisfy the Company’s requirements under the Community Reinvestment Act. The funds do not have a readily determinable fair value as of the balance sheet date.

Securities—Securities are classified and accounted for as follows:

(i) Securities that the Company has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and reported at amortized cost. At December 31, 2017 and 2016, the Company did not own securities in this category;

(ii) Securities are classified as “available-for-sale” when they might be sold before maturity and are reported at fair value. Unrealized holding gains and losses are reported as a separate component of stockholders’ equity in accumulated other comprehensive income (loss), net of taxes.

Accreted discounts and amortized premiums on securities are included in interest income using the interest method, and realized gains or losses related to sales of securities recorded on trade date and are calculated using the specific identification method, without anticipating prepayments, except for mortgage-backed securities where prepayments are expected.

Management evaluates securities for other than temporary impairment (“OTTI”) at least on a quarterly basis and more frequently when economic conditions warrant such evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings.

Derivative Financial Instruments and Hedging Transactions—As part of the Company’s asset and liability management strategy, the Company may enter into derivative financial instruments, such as interest rate swaps, and caps and floors, with the overall goal of minimizing the impact of interest rate fluctuations on net interest margin. The Company’s interest rate swaps and caps involve the exchange of fixed rate and variable rate interest payment obligations without the exchange of the underlying notional amounts and are therefore accounted for as stand-alone derivatives. Changes in the fair value of the stand-alone derivatives are reported in earnings as noninterest income. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors, are both considered derivatives. The Company accounts for loan commitments related to the origination of mortgage loans that will be held-for-sale as derivatives at fair value on the balance sheet, with changes in fair value recorded in earnings. As part of the Company’s overall risk management, the Company’s Asset Liability Committee, which meets monthly, monitors and measures interest rate risk and the sensitivity of assets and liabilities to interest rate changes, including the impact of derivative transactions.

Loans Held for Sale—Small Business Administration (“SBA”) and residential mortgage loans that the Company has the intent to sell prior to maturity have been designated as held for sale at origination and are recorded at the lower of cost or fair value, on an aggregate basis. A valuation allowance is established if the aggregate fair value of such loans is lower than their cost and charged to earnings. Gains or losses recognized upon the sale of loans are determined on a specific identification basis. Loan transfers are accounted for as sales when control over the loan has been surrendered. Control over such loans is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain control over the transferred assets through an agreement to repurchase them before their maturity.

Loans—Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of any purchase discounts, unearned interest, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Nonrefundable loan origination fees and certain direct origination costs are deferred and recognized in interest income using the level-yield method over the life of the loan. Interest on loans is credited to income as earned and is accrued only if deemed collectible.

Generally, loans are placed on nonaccrual status and the accrual of interest is discontinued if principal or interest payments become 90 days past due and/or management deems the collectibility of the principal and/or interest to be in question. Loans to a customer whose financial condition has deteriorated are considered for nonaccrual status whether or not the loan is 90 days or more past due. Generally, payments received on nonaccrual loans are recorded as principal reductions. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Other loan fees and charges, representing service costs for the prepayment of loans, for delinquent payments or for miscellaneous loan services, are recorded as income when collected.

Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes all loans with the exception of homogeneous loans, or loans that are evaluated together in pools of similar loans (i.e., home mortgage loans, home equity lines of credit, overdraft loans, express business loans, and automobile loans). This analysis is performed at least on a quarterly basis. The Company uses the following definitions for risk ratings:

• Pass: Loans that meet a preponderance or more of the Company’s underwriting criteria and evidence an acceptable level of risk.

• Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

• Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

• Doubtful/Loss: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Allowance for Loan Losses—The allowance for loan losses is a valuation allowance for probable incurred credit losses that are inherent in the loan portfolio. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off.

The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors.

The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment. The Company further segregates these segments between loans accounted for under the amortized cost method (referred to as “Legacy Loans”) and acquired loans (referred to as “Acquired Loans”), as Acquired Loans were originally recorded at fair value with no carryover of the related allowance for loan losses.

The historical loss experience for Legacy Loans is based on the actual loss history experienced by the Company. The loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations.

The following major portfolio segments have been identified: real estate loans (residential, commercial, and construction), commercial business loans, trade finance loans, and consumer/other loans. Due to the overall high level of real estate loans within the loan portfolio as a whole, as compared to other portfolio segments, for risk assessment and allowance purposes this segment was segregated into more granular pools by collateral property type.

Our real estate loan portfolio is subject to certain risks, including: a decline in the economies of our primary markets, interest rate increases, a reduction in real estate values in our primary markets, increased competition in pricing and loan structure, and environmental risks, including natural disasters. Our commercial business and trade finance loan portfolio are subject to certain risks, including: a decline in the economy in our primary markets, interest rate increases, and deterioration of a borrower’s or guarantor’s financial capabilities. Our consumer loan portfolio is subject to the same risk associated with our commercial business loan portfolio but also includes risk related to consumer bankruptcy laws which allow consumers to discharge certain debts.

The Company uses a loan migration analysis which is a formula methodology based on the Bank’s actual historical net charge off experience for each loan class (type) pool and risk grade. The migration analysis is centered on the Bank’s internal credit risk rating system. The Company’s internal loan review and external contracted credit review examinations are used to determine and validate loan risk grades. This credit review system takes into consideration factors such as: borrower’s background and experience; historical and current financial condition; credit history and payment performance; economic conditions and their impact on various industries; type, fair value and volatility of the fair value of collateral; lien position; and the financial strength of any guarantors.

A general loan loss allowance is provided on loans not specifically identified as impaired (“non-impaired loans”). The Bank’s general loan loss allowance has two components: quantitative and qualitative risk factors. The quantitative risk factors are based on a historical loss migration methodology. The loans are classified by class and risk grade and the historical loss migration is tracked for the various classes. Loss experience is quantified for a specified period and then weighted to place more significance to the most recent loss history. That loss experience is then applied to the stratified portfolio at each quarter end.

Additionally, in order to systematically quantify the credit risk impact of other trends and changes within the loan portfolio, the Bank utilizes qualitative adjustments to the Migration Analysis within established parameters. The parameters for making adjustments are established under a Credit Risk Matrix that provides seven possible scenarios for each of the factors below. The matrix allows for up to three positive (major, moderate, and minor), three negative (major, moderate, and minor), and one neutral credit risk scenarios within each factor for each loan type pool. Generally, the factors are considered to have no significant impact (neutral) to our historical migration ratios. However, if information exists to warrant adjustment to the Migration Analysis, changes are made in accordance with the established parameters supported by narrative and/or statistical analysis. The Credit Risk Matrix and the nine possible scenarios enable the Bank to qualitatively adjust the Loss Migration Ratio by as much as 50 basis points in either direction (positive or negative) for each loan type pool. This matrix considers the following nine factors, which are patterned after the guidelines provided under the FFIEC Interagency Policy Statement on the Allowance for Loan and Lease Losses:

• Changes in lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices.

• Changes in national and local economic and business conditions and developments, including the condition of various market segments.

• Changes in the nature and volume of the loan portfolio.

• Changes in the experience, ability and depth of lending management and staff.

• Changes in the trends of the volume and severity of past due loans, Classified Loans, nonaccrual loans, troubled debt restructurings and other loan modifications.

• Changes in the quality of our loan review system and the degree of oversight by the Directors.

• Changes in the value of underlying collateral for collateral-dependent loans.

• The existence and effect of any concentrations of credit and changes in the level of such concentrations.

• The effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated losses in the Company’s loan portfolio.

The Company also establishes specific loss allowances for loans where we have identified potential credit risk conditions or circumstances related to a specific individual credit. The specific allowance amounts are determined by a method prescribed by ASC 310-10-35-22, Measurement of Impairment. The loans identified as impaired will be accounted for in accordance with one of the three acceptable valuation methods: 1) the present value of future cash flows discounted at the loan’s effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral, if the loan is collateral dependent. For the collateral dependent impaired loans, the Company obtains a new appraisal to determine the amount of impairment as of the date that the loan became impaired. The appraisals are based on an “as is” valuation. To ensure that appraised values remain current, the Company either obtains updated appraisals every twelve months from a qualified independent appraiser or an internal re-valuation of the collateral is performed by qualified personnel. If the fair value of the collateral, less cost to sell, is less than the recorded amount of the loan, the Company then recognizes impairment by creating or adjusting an existing valuation allowance with a corresponding charge to the provision for loan losses. If an impaired loan is expected to be collected through liquidation of the underlying collateral, the loan is deemed to be collateral dependent and the amount of impairment is charged off against the allowance for loan losses.

The Bank considers a loan to be impaired when it is probable that not all amounts due (principal and interest) will be collectible in accordance with the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The significance of payment delays and payment shortfalls is determined on a case-by-case basis by taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed.

For commercial business loans, real estate loans and certain consumer loans, the Company bases the measurement of loan impairment on the present value of the expected future cash flows, discounted at the loan’s effective interest rate or on the fair value of the loan’s collateral, less estimated costs to sell, if the loan is collateral dependent. Management evaluates most consumer loans for impairment on a collective basis because these loans generally have smaller balances and are homogeneous in the underwriting of terms and conditions and in the type of collateral.

Impairment losses are included in the allowance for loan losses through a charge to the provision for loan losses. Upon disposition of an impaired loan, any unpaid balance is charged off to the allowance for loan losses.

The allowance for loan losses for acquired credit impaired loans is based upon expected cash flows for these loans. To the extent that a deterioration in borrower credit quality results in a decrease in expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on management’s estimate of future credit losses over the remaining life of the loans.

Acquired Loans—Loans that the Company acquires are recorded at fair value with no carryover of the related allowance for loan losses. On the date of acquisition, the Company considers acquired classified loans credit impaired loans (“Purchased Credit Impaired Loans” or “PCI loans”) under the provisions of Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. On the date of acquisition, loans without credit impairment (“Acquired Performing Loans” or “Non-PCI loans”) are not accounted for under ASC 310-30. Acquired loans are placed in pools with similar risk characteristics and recorded at fair value as of the acquisition date.

For PCI loans, the cash flows expected to be received over the life of the pools were estimated by management with the assistance of a third party valuation specialist. These cash flows were utilized in calculating the carrying values of the pools and underlying loans, book yields, effective interest income and impairment, if any, based on actual and projected events. Default rates, loss severity and prepayment speed assumptions are periodically reassessed and updated within the accounting model to update the expectation of future cash flows. The excess of the cash expected to be collected over the pools’ carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the loan or pool using the effective interest yield method. The accretable yield may change due to changes in the timing and amounts of expected cash flows. Changes in the accretable yield is disclosed quarterly.

For PCI loans, the excess of the contractual balances due over the cash flows expected to be collected is considered to be nonaccretable difference. The nonaccretable difference represents our estimate of the credit losses expected to occur and was considered in determining the fair value of the loans as of the date of acquisition. Subsequent to the date of acquisition, any increases in expected cash flows over those expected at purchase date in excess of fair value are adjusted through the accretable difference on a prospective basis. Any subsequent decreases in expected cash flows over those expected at the acquisition date are recognized by recording a provision for loan losses that will maintain the original expected yield.

PCI loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if management can reasonably estimate the timing and amount of the expected cash flows on such loans and if management expects to fully collect the new carrying value of the loans. As such, management may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. Management has determined that future cash flows are reasonably estimable on any such acquired loans that are past due 90 days or more and accruing interest. Management expects to fully collect the carrying value of the loans.

OREO—OREO, which represents real estate acquired through foreclosure in satisfaction of commercial and real estate loans, is stated at fair value less estimated selling costs of the real estate. Loan balances in excess of the fair value of the real estate acquired at the date of acquisition are charged to the allowance for loan losses. Any subsequent operating expenses or income, reduction in estimated fair values, and gains or losses on disposition of such properties are charged or credited to current operations. For the year ended December 31, 2017, the Company foreclosed on properties with an aggregate carrying value of $7.2 million. The Company recorded $3.7 million in net valuation adjustments subsequent to the foreclosures, and the Company sold OREO properties for total proceeds of $14.8 million.

FHLB Stock—The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Premises and Equipment—Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of premises and equipment are computed on the straight-line method over the following estimated useful lives:

Buildings	15	-	39	years
Furniture, fixture, and equipment	3	-	10	years
Computer equipment	1	-	5	years
Computer software	1	-	5	years
Leasehold improvement	life of lease or improvements, whichever is shorter

Mortgage Banking Derivatives — Mortgage banking derivatives are instruments used to hedge the risk to residential mortgage loans sales from changes in interest rates. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors, are both considered derivatives. The Company accounts for loan commitments related to the origination of mortgage loans that will be held-for-sale as derivatives at fair value on the balance sheet, with changes in fair value recorded in earnings. Commitments to originate mortgage loans that will be held for investment are not accounted for as derivatives and therefore are not recorded at fair value. Subsequent changes in the fair value of a derivative loan commitments are recognized in earnings in the period in which the changes occur.

BOLI—The Company has purchased life insurance policies on certain key executives and directors. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Investments in Affordable Housing Partnerships—The Company owns limited partnerships interest in projects of affordable housing for lower income tenants.  Under the equity method of accounting, the annual amortization is based on the estimated tax deduction amounts the bank would receive in the year. The carrying value of such investments and commitments to fund investment in affordable housing is recorded as “Investment in affordable housing partnerships” in the Consolidated Statement of Financial Condition. Commitment to fund investments in affordable housing is also included in this line items but is also grossed up and recorded as a liability. The Company recorded an impairment on investments in affordable housing partnerships totaling $4.8 million for the year ended December 31, 2017 to account for the variance between the carrying value of individual investments and the future expected tax benefits. Of the $4.8 million impairment recorded in 2017, $3.2 million was recorded in noninterest expense to reflect the impairment for the year ended December 31, 2017 and $1.6 million was recorded in income tax provision expenses as the re-evaluation was a direct result of the Tax Act which reduced corporate tax rates from 35% to 21%.

Goodwill and Intangible Assets—Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually.

In accordance with ASC 350 “Intangibles - Goodwill and Other”, the Company makes a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If management concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the two-step impairment test is bypassed. Management assessed the qualitative factors related to goodwill as of December 31, 2017. Goodwill is also tested for impairment on an interim basis if circumstances change or an event occurs between annual tests that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions and selecting an appropriate control premium. The selection and weighting of the various fair value techniques may result in a higher or lower fair value. Judgment is applied in determining the weighting that is most representative of fair value.

Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangibles are amortized over a seven to ten year period.

Loan Servicing Assets—The Company typically sells the guaranteed portion of SBA loans and retains the unguaranteed portion (“retained interest”). A portion of the premium on sale of SBA loans is recognized as gain on sale of loans at the time of the sale by allocating the carrying amount between the asset sold and the retained interest, including these servicing assets, based on their relative fair values. The remaining portion of the premium is recorded as a discount on the retained interest and is amortized over the remaining life of the loan as an adjustment to yield. The retained interest, net of any discount, are included in loans receivable—net of allowance for loan losses in the accompanying consolidated statements of financial condition.

Servicing assets are recognized when SBA and residential mortgage loans are sold with servicing retained with the income statement effect recorded in gains on sales of loans. Servicing assets are initially recorded at fair value based on the present value of the contractually specified servicing fee, net of servicing costs, over the estimated life of the loan, using a discount rate. The Company’s servicing costs approximates the industry average servicing costs of 40 basis points. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Management periodically evaluates servicing assets for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. No impairment charges were required in 2017, 2016, or 2015.

Stock-Based Compensation—Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Income Taxes—Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred income tax assets and liabilities represent the tax effects, based on current tax law, of future deductible or taxable amounts attributable to events that have been recognized in the financial statements. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, the projected future taxable income and tax planning strategies in making this assessment. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and / or penalties related to income tax matters in income tax expense.

Section 382 of the Internal Revenue Code imposes a limitation (“382 Limitation”) on a corporation’s ability to use any net unrealized built in losses and other tax attributes, such as net operating loss and tax credit carryforwards, when it undergoes a 50% ownership change over a designated testing period not to exceed three years (“382 Ownership Change”). As a result of the acquisition on July 29, 2016, Wilshire Bancorp underwent a 382 Ownership Change resulting in a 382 Limitation to its net operating loss and tax credit carryforwards. Wilshire Bancorp did not have a net unrealized built in loss as of the 382 Ownership Change date. Given the applicable 382 Limitation, the Company is expected to fully utilize Wilshire Bancorp’s net operating loss and tax credit carryforwards before expiration. However, future transactions, such as issuances of common stock or sales of shares of the Company’s stock by certain holders of our shares, including persons who have held, currently hold or may accumulate in the future 5% or more of our outstanding common stock for their own account, could trigger a future Section 382 Ownership Change of the Company which could limit the Company’s use of these tax attributes.

Earnings per Common Share—Basic Earnings per Common Share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted Earnings per Common Share reflects the potential dilution of common shares that could share in the earnings of the Company. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements.

Equity—The Company accrues for common stock dividends as declared. Common stock dividends of $67.7 million and $42.5 million, were paid in 2017 and 2016, respectively. There were no common stock dividends declared but unpaid at December 31, 2017 and 2016.

Dividend Restrictions—Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company, or dividends paid by the Company to stockholders.

Comprehensive Income—Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes the change in unrealized gains and losses on securities available for sale and interest-only strips which are also recognized as separate components of stockholders’ equity, net of tax.

Operating Segments—The Company is managed as a single business segment. The financial performance of the Company is reviewed by the chief operating decision maker on an aggregate basis and financial and strategic decisions are made based on the Company as a whole. We consider “Banking Operations” to be our single combined operating segment, which raises funds from deposits and borrowings for loans and investments, and provides lending products, including construction, real estate, commercial, and consumer loans to its customers.    

Loss Contingencies—Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management believes there are no such matters that would have a material effect on the consolidated financial statements as of December 31, 2017 or 2016. Accrued loss contingencies for all legal claims totaled approximately $414 thousand at December 31, 2017 and $557 thousand at December 31, 2016.

Loan Commitments and Related Financial Instruments—Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. See Note 13 Commitments and Contingencies of the Notes to Consolidated Financial Statements for further discussion.

Allowance for Unfunded Commitments—The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to these unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. The allowance for unfunded commitments is included in other liabilities on the consolidated statement of financial condition, with changes to the balance charged against noninterest expense.

Fair Values of Financial Instruments—Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Impairment of Long-Lived Assets—The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated future cash flows (undiscounted) over the remaining useful life of the asset are less than the carrying value, an impairment loss would be recorded to reduce the related asset to its estimated fair value.

Transfer of Financial Assets—Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Use of Estimates in the Preparation of Consolidated Financial Statements—The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

Reclassifications - Some items in the prior year financial statements were reclassified to conform to the current presentation. The reclassifications had no effect on the prior year net income or stockholders’ equity.

Accounting Pronouncements Adopted

ASU 2016-09 “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” was issued as a part of the FASB’s simplification initiative, and intends to improve the accounting for share-based payment transactions. The ASU changes several aspects of the accounting for share-based payment award transactions, including accounting for excess tax benefits and deficiencies, income statement recognition, cash flow classification, forfeitures, and tax withholding requirements. The Company adopted ASU 2016-09 in the first quarter of 2017. As of result of the adoption of ASU 2016-09, the Company recognizes excess tax benefits on share-based payment awards in income tax provision on the Consolidated Statement of Income rather than in additional paid-in capital on the Consolidated Statement of Changes in Stockholders’ Equity. The Company recorded $118 thousand of income tax benefits for the year ended December 31, 2017 related to excess tax benefits from share-based payment awards.

In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220), “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. ASU 2018-02 was issued to allow the reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effect resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017. The Tax Cuts and Jobs Act among other things reduced the corporate tax rate from 35% to 21% which required the re-evaluation of any deferred tax assets or liabilities at the lowered tax rate which potentially could leave disproportionate tax effects in accumulated other comprehensive income. ASU 2018-02 allows for the election to reclassify these stranded tax effects to retained earnings. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for public business entities for reporting periods for which financial statements have not yet been issued. The Company has chosen to early adopt ASU 2018-02 and has elected to reclassify its stranded tax effect totaling $3.6 million in accumulated other comprehensive income that resulted from the change in tax rates to retained earnings for the year ended December 31, 2017.

Recently Issued Accounting Pronouncements Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” and in May 2016, FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” Both updates which supersedes the revenue recognition requirements in Topic 606, Revenue Recognition. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 as amended by ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, is effective for interim and annual periods beginning after December 15, 2017 and is applied on either a modified retrospective or full retrospective basis. The Company has elected to adopt the modified retrospective approach and will apply the guidance to the most current period presented in the financial statements for the first quarter of 2018.

The Company’s revenue primarily consists of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income, as well as other revenues from financial instruments such as loans, leases, securities and derivatives. The Company’s material revenue streams that will be in scope of Topic 606 are service fees on deposit accounts (including interchange fees), asset management fees, certain OREO gains (losses), and international fees. All other revenue streams are either immaterial, or are in the scope of other GAAP requirements which take precedence and therefore are not in the scope of Topic 606.

The largest in scope revenue source is the Company’s fees on deposit accounts. Based on the Company’s initial analysis, Topic 606 will not materially change the recognition of revenue on service fees on deposits accounts as the contracts are day to day and recognized as the service is provided. The Company is not the principal in terms of wealth management fees as it acts as an agent for another company who provides wealth management services on the Company’s behalf. As such, wealth management fees recognition will not change with the adoption of Topic 606. Gain or losses on the sale of OREO are generally accounted for under ASC 610. However, ASU 2014-09 also added new Subtopic 610-20 which addresses the recognition of gains and losses on the transfer of nonfinancial and in-substance nonfinancial assets. Gain and loss recognition is not expected to change except for OREO and other nonfinancial sales that are financed by the Company. In the case of financed sales, the Company will need to evaluate each contract to determine whether each contract criteria is met, including whether it is probable that it will collect substantially all of the consideration to which it will be entitled. The Company will also need to evaluate whether the financing terms offered to the buyer of the nonfinancial assets are market terms when determining the transaction price. As of the adoption date, there were no open sale contracts with a financing component. International fees are similar to service fees on deposits as the contracts are day to day and income is recognized as the service is provided and therefore Topic 606 is not expected to change the recognition of this line of revenue.

The adoption of ASU 2014-09 will not have a material impact on the Company’s consolidated financial statements. The way certain in scope revenue stream are assessed will change as the Company will need to apply the principles in the new standard using the following five steps; 1. Identify the contract(s) with a customer, 2. Identify the performance obligations in the contract, 3. Determine the transaction price, 4. Allocate the transaction price to the performance obligations in the contract, 5. Recognize revenue when (or as) the entity satisfies a performance obligation. However, actual recorded revenue is not expected to change materially with the adoption of the new revenue recognition standard. ASU 2014-09 will require additional disclosures including disclosures of revenue recognized from contracts with customers and impairment recorded on recognized on contracts with customer, revenue disaggregated by types of categories that are most relevant to the Company, the opening and closing balances of receivables, contract assets, and contract liabilities from contracts with customers, information about its performance obligations in contracts with customers, and judgments, and changes in the judgments, made in applying the new guidance.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The new guidance becomes effective for fiscal years beginning after December 15, 2017. The Company does not hold any equity investments in the available-for-sale portfolio that would require reclassification and re-measurement at the adoption date. The adoption of ASU 2016-01 is not expected to have a material impact to the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently in the process of evaluating the impact of the pending adoption of the new standard on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. ASU 2016-13 becomes effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the pending adoption of the new standard on its consolidated financial statements and is collaborating with a third party advisory team to develop a multi-year implementation plan and methodology in order for the Company to be compliant with ASU 2016-13 by the effective date. The Company has established a CECL committee to oversee the development and implementation of ASU 2016-13. Based on the Company’s initial assessment of the ASU 2016-13, the Company’s expects the new guidance will result in additional required provision and allowance for loan losses which could have a material impact on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance on classification and presentation of certain cash receipts and cash payments on an institution’s statement of cash flows. The amendment aims to reduce the diversity in practice with respects to certain types of cash flows. ASU 2016-15 becomes effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. The adoption of ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, “Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment.” ASU 2017-04 will amend and simplify current goodwill impairment testing to eliminate Step 2 from the current provisions. Under the new guidance, an entity should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity still has the option to perform the quantitative assessment for a reporting unit to determine if a quantitative impairment test is necessary. ASU 2017-04 should be adopted for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the pending adoption of the new standard on its consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities”. ASU 2017-08 was issued to amend the amortization period for certain callable debt securities held at a premium. ASU 2017-08 shortens the amortization period of premiums on certain purchased callable debt securities to the earliest call date. ASU 2017-08 affect all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date (that is, at a premium). ASU 2017-08 does not impact securities purchased at a discount, which continue to be amortized to maturity. ASU 2017-08 is effective for annual period beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted in an interim period. If an entity chooses to adopt early, any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. The adoption of ASU 2017-08 is not expected to have a material impact on the Company’s consolidated financial statements.

In November 2017, the FASB issued ASU 2017-14, Income Statement-Reporting Comprehensive Income (Topic 220), “Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403”. ASU 2017-14 was issued to supersede, amend, and add SEC paragraphs to the Codification to reflect the August 2017 issuance of SEC Staff Accounting Bulletin (SAB) 116 and SEC Release No. 33-10403. The SEC staff issued SAB 116 to align its revenue guidance with ASC 606, Revenue from Contracts with Customers. The SEC release says vaccine manufacturers should recognize revenue and provide the disclosures required by ASC 606 when the enumerated vaccines are placed into federal government stockpile programs. The amendments in the ASU have the same effective date and transition requirements as those for ASC 606; however, a registrant should continue referring to the applicable existing SEC guidance until it adopts ASC 606. ASU 2017-14 has the same effective date and transition requirements as ASU 2014-09 and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. For more information, see the Company’s disclosure of ASU 2014-09 above.

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Mergers and Acquisitions

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Mergers and Acquisitions

MERGERS AND ACQUISITIONS

Termination of Acquisition of U & I Financial Corp

On January 23, 2017, the Company announced the signing of a definitive agreement and plan of merger (the “U & I Merger Agreement”) with U & I Financial Corporation (“U & I”) pursuant to which U & I would have merged with and into Hope Bancorp with Hope Bancorp as the surviving corporation. As part of the merger, UniBank, a wholly-owned subsidiary of U & I, would have merged with and into the Bank.

Subsequently on September 15, 2017, the Company announced the mutual termination of the proposed merger with U & I as the Company was unable to obtain the required regulatory approval. The Mutual Termination Agreement provided, among other things, that each party will bear its own costs and expenses in connection with the terminated transaction, without penalties or termination fees. In connection with the termination, the parties have provided mutual releases from any claims of liability to one another relating to the merger transaction.

Merger with Wilshire Bancorp Inc.

On July 29, 2016, the merger of Wilshire Bancorp Inc. (“Wilshire”) and BBCN Bancorp, Inc. (now Hope Bancorp) was completed. On the same day BBCN changed its name to Hope Bancorp, Inc. and the subsidiary BBCN Bank was changed to Bank of Hope. The Company merged with Wilshire to create the only super regional Korean-American Bank in the United States and to expand our branch network nationwide. Pursuant to the merger agreement, holders of Wilshire common stock received 0.7034 of a share of common stock of HOPE for each share of Wilshire common stock held immediately prior to the effective time of the merger, rounded to the nearest whole share, plus cash in lieu of the issuance of fractional shares. Outstanding Wilshire stock options and restricted stock awards were converted into stock options with respect to shares of HOPE common stock or restricted shares of HOPE common stock, respectively, with appropriate adjustments to reflect the exchange ratio. The merger was accounted for using the acquisition method of accounting. Accordingly, the assets and liabilities of Wilshire were recorded at their respective fair values and represents management’s estimates based on available information.

The consideration paid, the assets acquired, and the liabilities assumed are summarized in the following table:

	July 29, 2016
	(Dollars in thousands)
Consideration Paid:
Hope common stock issued in exchange for Wilshire common stock	$	852,939
Cash paid for fractional shares	3
Hope stock options issued in exchange Wilshire stock options	3,370
Total consideration paid	$	856,312
Assets Acquired:
Cash and cash equivalents	$	100,127
Investment securities	478,938
Loans receivable	3,800,807
FRB and FHLB stock	16,539
OREO	13,173
Premises and equipment	16,812
BOLI	25,240
Servicing assets	16,203
Low income housing tax credit investments	47,111
Core deposit intangibles	18,138
Deferred tax assets, net	17,698
Other assets	76,818
Liabilities Assumed:
Deposits	(3,812,367		)
Borrowings	(206,282		)
Subordinated debentures	(56,942		)
Other liabilities	(54,751		)
Total identifiable net assets	$	497,262
Excess of consideration paid over fair value of net assets acquired (goodwill)	$	359,050

Fair values are primarily determined through the use of inputs that are not observable from market-based information. Under ASC 805-10-25-13, management may adjust the fair values of acquired assets or assumed liabilities for a period of up to one year from the date of the acquisition to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have an effect on the measurement of the amounts recognized as of that date. During the fourth quarter of 2016, the Company made a net adjustment of $1.4 million to the deferred tax assets and taxes receivable acquired from Wilshire which reduced the previous goodwill recorded from the transaction by $1.4 million. Subsequently in the first quarter of 2017, the

Company made an adjustment which increased goodwill by $978 thousand consisting of a $1.7 million adjustment to OREO partially offset by a $716 thousand adjustment to deferred tax assets. During the second quarter of 2017, the Company made an

adjustment of $475 thousand to deferred tax assets which increased goodwill by the same amount.

Acquired Loans

The fair value of loans were estimated on an individual basis based on the characteristics for each loan. A discounted cash flow analysis was used to project cash flows for each loan using assumptions for rate, remaining maturity, prepayment speeds, projected default probabilities, loss given defaults, and estimate of prevailing discount rates. The following table presents loans acquired from Wilshire with deteriorated credit quality as of the date of acquisition included as loans receivable in the table above:

	Fair Value At July 29, 2016
	(Dollars in thousands)
Contractually required principal and interest at acquisition	$	292,380
Contractual cash flows not expected to be collected (nonaccretable discount)	(8,002		)
Expected cash flows at acquisition	284,378
Interest component of expected cash flows (accretable discount)	(41,271		)
Fair value of acquired impaired loans	$	243,107

The carrying balance of the acquired loans from Wilshire included in the Statement of Financial Condition at December 31, 2017 was $2.60 billion compared to $3.59 billion at December 31, 2016.

Pro Forma Information

The following table presents financial information regarding the Wilshire’s operations included in the Consolidated Statement of Income from the date of acquisition through December 31, 2016. The table also presents unaudited pro forma information as if the merger had occurred on January 1, 2015. This pro forma information gives effect to certain adjustments, including purchase accounting fair value adjustments, amortization of core deposit and related income tax effects. Merger and integration expenses incurred of $25.7 million and $1.4 million for the years ended December 31, 2016 and 2015, respectively, were excluded. The pro forma information does not necessarily reflect the results of operations that would have occurred had the Company merged with Wilshire at the beginning of 2015. The pro forma combined condensed consolidated financial statements do not take into account the impact, if any, of an ownership change under Section 382 of the Code that would have occurred as of January 1, 2015. The merger is expected to result in annual cost savings to be achieved following the consummation of the merger. These expected savings have not been included in the pro forma combined amounts. These pro forma results require significant estimates and judgments particularly as it relates to the valuation and accretion of income associated with acquired loans.

	Actual from Acquisition Date Through December 31,		Pro forma Year Ended December 31,
	2016		2016		2015
	(Dollars in thousands)
Net interest income	$	197,953	$	456,556	$	449,501
Provision for loan losses	6,490		4,000		8,700
Non-interest income	29,546		75,266		89,345
Non-interest expense	120,954		235,013		255,401
Income tax provision	39,828		$	118,613	$	111,581
Net income	$	60,227	$	174,196	$	163,164
Pro forma earnings per share:
Basic			$	1.29	$	1.21
Diluted			$	1.29	$	1.21

Acquisition-Related Expenses

The following table presents merger and integration expenses associated with the merger with Wilshire, the terminated merger with U & I, and other previous mergers and acquisitions which were reflected in the Consolidated Statements of Income in merger and integration expense. These expenses are comprised primarily of severance payments, professional services, and other noninterest expense related to prior mergers and acquisitions.

	Year ended December 31,
	2017		2016		2015
	(Dollars in thousands)
Wilshire	$	1,224	$	16,818	$	1,414
U & I	467		—		—
Other	90		96		126
Total merger and integration expenses	$	1,781	$	16,914	$	1,540

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Securities Available for Sale

12 Months Ended

Dec. 31, 2017

Available-for-sale Securities [Abstract]

Securities Available for Sale

SECURITIES AVAILABLE FOR SALE

The following is a summary of securities available-for-sale at December 31, 2017 and 2016:

	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in thousands)
Debt securities:
U.S. Government agency and U.S.   Government sponsored enterprises:
Collateralized mortgage obligations	$	856,193	$	58	$	(17,542	)	$	838,709
Mortgage-backed securities:
Residential	477,676		521		(6,983		)	471,214
Commercial	308,046		—		(6,681		)	301,365
Corporate securities	4,997		—		(522		)	4,475
Municipal securities	82,542		870		(875		)	82,537
Total debt securities	1,729,454		1,449		(32,603		)	1,698,300
Mutual funds	22,425		17		(485		)	21,957
Total	$	1,751,879	$	1,466	$	(33,088	)	$	1,720,257
	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in thousands)
Debt securities:
U.S. Government agency and U.S.   Government sponsored enterprises:
Agency securities	$	12,005	$	3	$	—		$	12,008
Collateralized mortgage obligations	715,981		349		(10,663		)	705,667
Mortgage-backed securities:
Residential	611,201		1,132		(9,381		)	602,952
Commercial	130,103		—		(5,014		)	125,089
Corporate securities	11,576		—		(449		)	11,127
Municipal securities	88,018		358		(1,537		)	86,839
Total debt securities	1,568,884		1,842		(27,044		)	1,543,682
Mutual funds	13,425		—		(367		)	13,058
Total	$	1,582,309	$	1,842	$	(27,411	)	$	1,556,740

As of December 31, 2017 and December 31, 2016, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

The proceeds from sales of securities and total gains and losses are listed below:

	Year ended December 31,
	2017			2016			2015
	(Dollars in thousands)
Proceeds from investments sold	$	128,791		$	217,079		$	22,510
Gains from sales of securities	402			1,032			437
Losses from sales of securities	(101		)	(84		)	(13		)
Gains from called securities	—			2			—
Net gain on sales or called securities	$	301		$	950		$	424

The amortized cost and estimated fair value of securities at December 31, 2017, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	December 31, 2017
	Amortized Cost		Estimated Fair Value
	(Dollars in thousands)
Available for sale:
Due within one year	$	—	$	—
Due after one year through five years	11,541		11,729
Due after five years through ten years	33,106		33,581
Due after ten years	42,892		41,702
U.S. Government agency and U.S. Government sponsored enterprises
Collateralized mortgage obligations	856,193		838,709
Mortgage-backed securities:
Residential	477,676		471,214
Commercial	308,046		301,365
Mutual funds	22,425		21,957
Total	$	1,751,879	$	1,720,257

Securities with carrying values of approximately $359.2 million and $382.1 million at December 31, 2017 and December 31, 2016, respectively, were pledged to secure public deposits, various borrowings, and for other purposes as required or permitted by law.

Securities with gross unrealized losses, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated, are as follows:

	December 31, 2017
	Less than 12 months						12 months or longer						Total
Description of Securities	Number  of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number  of Securities	Fair Value		Gross Unrealized Losses
	(Dollars in thousands)
Collateralized mortgage obligations	38	$	425,198	$	(5,954	)	53	$	408,526	$	(11,588	)	91	$	833,724	$	(17,542	)
Mortgage-backed securities:
Residential	20	195,086		(1,282		)	23	230,616		(5,701		)	43	425,702		(6,983		)
Commercial	16	186,357		(1,614		)	8	115,008		(5,067		)	24	301,365		(6,681		)
Corporate securities	1	4,475		(522		)	—	—		—			1	4,475		(522		)
Municipal securities	18	9,295		(69		)	3	22,144		(806		)	21	31,439		(875		)
Mutual funds	1	8,899		(101		)	3	11,579		(384		)	4	20,478		(485		)
Total	94	$	829,310	$	(9,542	)	90	$	787,873	$	(23,546	)	184	$	1,617,183	$	(33,088	)

	December 31, 2016
	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
	(Dollars in thousands)
Collateralized mortgage obligations	66	$	615,803	$	(9,459	)	4	$	36,333	$	(1,204	)	70	$	652,136	$	(10,663	)
Mortgage-backed securities:
Residential	49	497,708		(9,381		)	—	—		—			49	497,708		(9,381		)
Commercial	8	125,089		(5,014		)	—	—		—			8	125,089		(5,014		)
Corporate securities	1	7,014		(2		)	1	4,113		(447		)	2	11,127		(449		)
Municipal securities	95	69,331		(1,537		)	—	—		—			95	69,331		(1,537		)
Mutual funds	3	13,058		(367		)	—	—		—			3	13,058		(367		)
Total	222	$	1,328,003	$	(25,760	)	5	$	40,446	$	(1,651	)	227	$	1,368,449	$	(27,411	)

The Company evaluates securities for OTTI on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and the extent to which the fair value of the securities has been less than our cost for the securities, and management’s intention to sell, or whether it is more likely than not that management will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, the Company considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.

The Company has certain collateralized mortgage obligations, mortgage-backed securities, municipal securities, and mutual funds that were in a continuous loss position for twelve months or longer as of December 31, 2017. Municipal securities in a continuous loss position for twelve months or longer had an unrealized losses of $806 thousand at December 31, 2017 with the last of the securities scheduled to mature in November 2046. These securities were rated investment grade and there were no credit quality concerns with the obligator. Mutual funds in a continuous loss position for twelve months or longer had an unrealized losses of $384 thousand, however there were no credit quality concerns with the fund. Collateralized mortgage obligations, residential and commercial mortgage-backed securities in a continuous loss position for twelve months or longer had an unrealized losses of $11.6 million, $5.7 million, and $5.1 million, respectively at December 31, 2017. These securities were investments in U.S. Government agency and U.S. Government sponsored enterprises and have high credit ratings (“AA” grade or better). The interest on the securities that were in an unrealized loss position have been paid as agreed, and management believes this will continue in the future and that the securities will be paid in full as scheduled. The market value declines are deemed to be due to the current market volatility and are not reflective of management’s expectations of the Company’s ability to fully recover the investments, which may be at maturity. For these reasons, no OTTI was recognized on the securities that were in a continuous loss position for twelve months or longer at December 31, 2017.

The Company considers the losses on our investments in unrealized loss positions at December 31, 2017 to be temporary based on: 1) the likelihood of recovery; 2) the information relative to the extent and duration of the decline in market value; and 3) the Company’s intention not to sell, and management’s determination that it is more likely than not that the Company will not be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. The increase in the net unrealized loss position can be attributed to an increase in long term Treasury yields as a result of the increase in interest rates at December 31, 2017, compared to rates at December 31, 2016.

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Loans Receivable and Allowance for Loan Losses

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Loans Receivable and Allowance for Loan Losses

The following is a summary of loans by major category at December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
Loan portfolio composition	(Dollars in thousands)
Real estate loans:
Residential	$	49,774		$	57,884
Commercial & industrial	8,142,036			7,842,573
Construction	316,412			254,113
Total real estate loans	8,508,222			8,154,570
Commercial business	1,780,869			1,832,021
Trade finance	166,664			154,928
Consumer and other	647,102			403,470
Total loans outstanding	11,102,857			10,544,989
Deferred loan fees, net	(282		)	(1,657		)
Gross loans receivable	11,102,575			10,543,332
Allowance for loan losses	(84,541		)	(79,343		)
Loans receivable, net	$	11,018,034		$	10,463,989

Our loan portfolio is made up of four segments: real estate loans, commercial business, trade finance and consumer and other loans. These segments are further segregated between loans accounted for under the amortized cost method ("Legacy Loans") and acquired loans that were originally recorded at fair value with no carryover of the related pre-acquisition allowance for loan losses ("Acquired Loans"). The Acquired Loans are further segregated between Purchased Credit Impaired Loans (loans with credit deterioration on the acquisition date and accounted for under ASC 310-30, or "PCI loans") and Acquired Performing Loans (loans that were pass graded on the acquisition date and the fair value adjustment is amortized over the contractual life under ASC 310-20, or "non-PCI loans").

The following table presents changes in the accretable discount on the PCI loans for the years ended December 31, 2017 and 2016:

	Year ended December 31,
	2017			2016
	(Dollars in thousands)
Balance at beginning of period	$	43,611		$	23,777
Additions due to mergers and acquisitions	—			41,271
Accretion	(21,542		)	(15,817		)
Increase (decrease) in expected cash flows	32,933			(5,620		)
Balance at end of period	$	55,002		$	43,611

On the acquisition date, the amount by which the undiscounted expected cash flows exceed the estimated fair value of the PCI loans is the accretable yield. The accretable yield is then measured at each financial reporting date and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. The accretable yield may change from period to period due to the following: 1) estimates of the remaining life of acquired loans will affect the amount of future interest income, 2) indices for variable rates of interest on PCI loans may change; and 3) estimates of the amount of the contractual principal and interest that will not be collected (nonaccretable difference) may change.

The following tables detail the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2017 and 2016:

	Legacy												Acquired											Total
	Real Estate			Commercial Business			Trade Finance			Consumer and Other			Real Estate			Commercial Business			Trade Finance		Consumer and Other
	(Dollars in thousands)
December 31, 2017
Balance, beginning of period	$	38,956		$	23,430		$	1,897		$	2,116		$	12,791		$	117		$	—	$	36		$	79,343
Provision (credit) for loan losses	8,524			(1,036		)	1,825			2,207			1,341			4,500			42		(43		)	17,360
Loans charged off	(2,292		)	(9,881		)	(2,104		)	(943		)	(850		)	(1,315		)	—		(25		)	(17,410		)
Recoveries of charge offs	172			4,715			56			5			40			225			—		35			5,248
Balance, end of period	$	45,360		$	17,228		$	1,674		$	3,385		$	13,322		$	3,527		$	42	$	3		$	84,541
December 31, 2016
Balance, beginning of period	$	42,829		$	16,332		$	3,592		$	556		$	12,823		$	214		$	—	$	62		$	76,408
Provision (credit) for loan losses	(4,896		)	12,928			(1,695		)	2,229			714			(248		)	—		(32		)	9,000
Loans charged off	(152		)	(7,267		)	—			(757		)	(758		)	(26		)	—		—			(8,960		)
Recoveries of charge offs	1,175			1,437			—			88			12			177			—		6			2,895
Balance, end of period	$	38,956		$	23,430		$	1,897		$	2,116		$	12,791		$	117		$	—	$	36		$	79,343
December 31, 2015
Balance, beginning of period	$	38,775		$	15,986		$	3,456		$	427		$	8,573		$	485		$	—	$	56		$	67,758
Provision (credit) for loan losses	2,828			(577		)	1,424			177			4,270			(117		)	—		(5		)	8,000
Loans charged off	(558		)	(1,971		)	(1,288		)	(630		)	(183		)	(271		)	—		(11		)	(4,912		)
Recoveries of charged offs	1,784			2,894			—			582			163			117			—		22			5,562
Balance, end of period	$	42,829		$	16,332		$	3,592		$	556		$	12,823		$	214		$	—	$	62		$	76,408

The following tables disaggregate the allowance for loan losses and the carrying value of loans receivables by impairment methodology at December 31, 2017 and December 31, 2016:

	December 31, 2017
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	1,378	$	2,807	$	3	$	35	$	246	$	854	$	—	$	—	$	5,323
Collectively evaluated for impairment	43,982		14,421		1,671		3,350		1,036		2,673		42		3		67,178
PCI loans	—		—		—		—		12,040		—		—		—		12,040
Total	$	45,360	$	17,228	$	1,674	$	3,385	$	13,322	$	3,527	$	42	$	3	$	84,541
Loans outstanding:
Individually evaluated for impairment	$	41,041	$	31,322	$	3,951	$	908	$	14,239	$	18,733	$	2,984	$	1,171	$	114,349
Collectively evaluated for impairment	6,172,448		1,459,273		152,204		477,375		2,120,001		244,980		7,525		157,794		10,791,600
PCI loans	—		—		—		—		160,493		26,561		—		9,854		196,908
Total	$	6,213,489	$	1,490,595	$	156,155	$	478,283	$	2,294,733	$	290,274	$	10,509	$	168,819	$	11,102,857

	December 31, 2016
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	1,889	$	4,420	$	864	$	50	$	113	$	73	$	—	$	—	$	7,409
Collectively evaluated for impairment	37,067		19,010		1,033		2,066		548		44		—		36		59,804
PCI loans	—		—		—		—		12,130		—		—		—		12,130
Total	$	38,956	$	23,430	$	1,897	$	2,116	$	12,791	$	117	$	—	$	36	$	79,343
Loans outstanding:
Individually evaluated for impairment	$	74,085	$	34,783	$	6,029	$	733	$	23,865	$	435	$	—	$	431	$	140,361
Collectively evaluated for impairment	5,271,262		1,079,348		75,365		179,961		2,597,200		650,710		70,535		206,802		10,131,183
PCI loans	—		—		—		—		188,158		66,745		2,999		15,543		273,445
Total	$	5,345,347	$	1,114,131	$	81,394	$	180,694	$	2,809,223	$	717,890	$	73,534	$	222,776	$	10,544,989

As of December 31, 2017 and December 31, 2016, the allowance for unfunded commitments was $836 thousand and $3.2 million, respectively. For the year ended December 31, 2017 and 2016, the recognized (credit) provision for credit losses related to unfunded commitments was $(2.4) million and $179 thousand.

The recorded investment in individually impaired loans was as follows:

	December 31, 2017			December 31, 2016
	(Dollars in thousands)
With allocated allowance:
Without charge-off	$	28,614		$	59,638
With charge-off	3,044			1,120
With no allocated allowance:
Without charge-off	77,533			76,775
With charge-off	5,158			2,828
Allowance on impaired loans	(5,323		)	(7,409		)
Impaired loans, net of allowance	$	109,026		$	132,952

The following tables detail impaired loans (Total Impaired Loans including Legacy and Acquired and Acquired only) by portfolio segment. Loans with no related allowance for loan losses are believed by management to have adequate collateral securing their carrying value. The Company did not recognize any cash basis interest income for the years ended December 31, 2017 or 2016.

	December 31, 2017						Year Ended December 31, 2017
Total Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	532		531		131		1,120		—
Hotel & Motel	2,931		5,090		284		4,050		67
Gas Station & Car Wash	—		—		—		43		—
Mixed Use	312		958		4		245		6
Industrial & Warehouse	772		1,482		96		1,135		—
Other	4,397		4,401		1,109		11,707		237
Real Estate—Construction	—		—		—		—		—
Commercial Business	18,330		22,757		3,661		23,695		631
Trade Finance	3,861		3,861		3		2,842		217
Consumer and Other	523		524		35		240		4
Subtotal	$	31,658	$	39,604	$	5,323	$	45,077	$	1,162
With No Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	1,105	$	—
Real Estate—Commercial
Retail	11,792		13,923		—		12,288		434
Hotel & Motel	2,841		5,288		—		7,245		—
Gas Station & Car Wash	591		1,764		—		3,168		—
Mixed Use	1,101		3,490		—		3,496		—
Industrial & Warehouse	8,429		8,525		—		8,676		262
Other	20,282		24,412		—		17,116		608
Real Estate—Construction	1,300		1,441		—		1,611		—
Commercial Business	31,725		33,207		—		16,312		697
Trade Finance	3,074		3,091		—		2,994		253
Consumer and Other	1,556		1,676		—		1,225		25
Subtotal	$	82,691	$	96,817	$	—	$	75,236	$	2,279
Total	$	114,349	$	136,421	$	5,323	$	120,313	$	3,441

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	December 31, 2017						Year Ended December 31, 2017
Impaired acquired loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	262		261		126		851		—
Hotel & Motel	85		86		2		105		—
Gas Station & Car Wash	—		—		—		—		—
Mixed Use	129		129		1		179		6
Industrial & Warehouse	221		896		96		225		—
Other	319		323		21		319		17
Real Estate—Construction	—		—		—		—		—
Commercial Business	1,987		2,903		854		1,111		47
Trade Finance	—		—		—		—		—
Consumer and Other	—		—		—		—		—
Subtotal	$	3,003	$	4,598	$	1,100	$	2,790	$	70
With No Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	235	$	—
Real Estate—Commercial
Retail	3,412		4,099		—		2,866		141
Hotel & Motel	482		1,887		—		3,086		—
Gas Station & Car Wash	1		28		—		619		—
Mixed Use	152		2,240		—		2,191		—
Industrial & Warehouse	45		45		—		59		3
Other	9,131		9,951		—		5,190		340
Real Estate—Construction	—		—		—		—		—
Commercial Business	16,746		16,926		—		5,794		182
Trade Finance	2,984		3,001		—		1,274		248
Consumer and Other	1,171		1,291		—		645		7
Subtotal	$	34,124	$	39,468	$	—	$	21,959	$	921
Total	$	37,127	$	44,066	$	1,100	$	24,749	$	991

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	December 31, 2016						Year Ended December 31, 2016
Total Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	2,095		2,384		90		1,788		—
Hotel & Motel	6,387		6,387		337		3,650		332
Gas Station & Car Wash	215		228		41		884		—
Mixed Use	206		732		27		350		7
Industrial & Warehouse	530		530		—		547		23
Other	22,580		22,825		1,507		23,690		1,033
Real Estate—Construction	—		—		—		—		—
Commercial Business	26,543		27,161		4,493		32,626		988
Trade Finance	2,111		2,156		864		7,134		25
Consumer and Other	91		91		50		289		4
Subtotal	$	60,758	$	62,494	$	7,409	$	70,958	$	2,412
With No Related Allowance:
Real Estate—Residential	$	3,562	$	3,562	$	—	$	712	$	119
Real Estate—Commercial
Retail	12,753		13,290		—		10,745		451
Hotel & Motel	6,122		11,735		—		8,275		14
Gas Station & Car Wash	5,043		7,449		—		4,817		39
Mixed Use	7,303		7,822		—		3,284		282
Industrial & Warehouse	9,673		9,748		—		10,252		350
Other	20,181		21,492		—		13,086		479
Real Estate—Construction	1,300		1,441		—		1,322		—
Commercial Business	8,675		9,472		—		10,559		203
Trade Finance	3,918		3,918		—		1,674		208
Consumer and Other	1,073		1,136		—		1,026		29
Subtotal	$	79,603	$	91,065	$	—	$	65,752	$	2,174
Total	$	140,361	$	153,559	$	7,409	$	136,710	$	4,586

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	December 31, 2016						Year Ended December 31, 2016
Impaired acquired loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	1,826		2,114		85		1,387		—
Hotel & Motel	—		—		—		—		—
Gas Station & Car Wash	—		—		—		203		—
Mixed Use	136		136		2		280		7
Industrial & Warehouse	—		—		—		—		—
Other	337		341		26		327		18
Real Estate—Construction	—		—		—		—		—
Commercial Business	294		339		73		448		5
Trade Finance	—		—		—		—		—
Consumer and Other	—		—		—		32		—
Subtotal	$	2,593	$	2,930	$	186	$	2,677	$	30
With No Related Allowance:
Real Estate—Residential	$	679	$	679	$	—	$	136	$	—
Real Estate—Commercial
Retail	3,148		3,214		—		2,496		152
Hotel & Motel	4,767		7,171		—		5,700		14
Gas Station & Car Wash	1,568		1,815		—		1,506		39
Mixed Use	5,315		5,551		—		1,238		245
Industrial & Warehouse	66		66		—		873		3
Other	6,023		6,752		—		4,021		177
Real Estate—Construction	—		—		—		—		—
Commercial Business	141		386		—		580		2
Trade Finance	—		—		—		—		—
Consumer and Other	431		484		—		453		9
Subtotal	$	22,138	$	26,118	$	—	$	17,003	$	641
Total	$	24,731	$	29,048	$	186	$	19,680	$	671

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	Year Ended December 31, 2015
Total Impaired Loans	Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—
Real Estate—Commercial
Retail	3,388		—
Hotel & Motel	10,512		230
Gas Station & Car Wash	1,542		59
Mixed Use	498		9
Industrial & Warehouse	3,686		25
Other	12,585		1,110
Real Estate—Construction	—		—
Commercial Business	31,790		998
Trade Finance	6,209		527
Consumer and Other	153		7
Subtotal	$	70,363	$	2,965
With No Related Allowance:
Real Estate—Residential	$	—	$	—
Real Estate—Commercial
Retail	10,779		464
Hotel & Motel	6,455		93
Gas Station & Car Wash	3,685		107
Mixed Use	2,375		51
Industrial & Warehouse	10,186		254
Other	9,355		362
Real Estate—Construction	1,153		—
Commercial Business	8,722		345
Trade Finance	986		—
Consumer and Other	1,177		26
Subtotal	$	54,873	$	1,702
Total	$	125,236	$	4,667

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	Year Ended December 31, 2015
Impaired acquired loans	Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—
Real Estate—Commercial
Retail	1,835		—
Hotel & Motel	—		—
Gas Station & Car Wash	1,246		59
Mixed Use	380		9
Industrial & Warehouse	72		—
Other	797		16
Real Estate—Construction	—		—
Commercial Business	671		15
Trade Finance	—		—
Consumer and Other	—		—
Subtotal	$	5,001	$	99
With No Related Allowance:
Real Estate—Residential	$	—	$	—
Real Estate—Commercial
Retail	2,301		105
Hotel & Motel	5,889		73
Gas Station & Car Wash	651		64
Mixed Use	210		13
Industrial & Warehouse	1,275		9
Other	4,162		53
Real Estate—Construction	—		—
Commercial Business	892		55
Trade Finance	—		—
Consumer and Other	629		7
Subtotal	$	16,009	$	379
Total	$	21,010	$	478

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

The following tables present the aging of past due loans as of December 31, 2017 and December 31, 2016 by class of loans:

	December 31, 2017
	Past Due and Accruing								Nonaccrual Loans (2)		Total Delinquent and Nonaccrual Loans
	30-59 Days		60-89  Days		90 or More Days		Total
	(Dollars in thousands)
Legacy Loans
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	2,384		—		—		2,384		3,179		5,563
Hotel & Motel	1,884		1,027		—		2,911		3,931		6,842
Gas Station & Car Wash	956		—		—		956		590		1,546
Mixed Use	129		—		—		129		1,132		1,261
Industrial & Warehouse	1,121		99		—		1,220		3,403		4,623
Other	1,408		—		—		1,408		5,689		7,097
Real Estate—Construction	—		—		—		—		1,300		1,300
Commercial Business	698		505		—		1,203		8,540		9,743
Trade Finance	—		—		—		—		—		—
Consumer and Other	7,512		93		407		8,012		471		8,483
Subtotal	$	16,092	$	1,724	$	407	$	18,223	$	28,235	$	46,458
Acquired Loans (1)
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	81		216		—		297		638		935
Hotel & Motel	—		1,219		—		1,219		568		1,787
Gas Station & Car Wash	1,161		41		—		1,202		1		1,203
Mixed Use	151		—		—		151		152		303
Industrial & Warehouse	804		264		—		1,068		221		1,289
Other	—		—		—		—		1,389		1,389
Real Estate—Construction	—		—		—		—		—		—
Commercial Business	1,088		155		—		1,243		14,560		15,803
Trade Finance	—		—		—		—		—		—
Consumer and Other	957		—		—		957		1,011		1,968
Subtotal	$	4,242	$	1,895	$	—	$	6,137	$	18,540	$	24,677
TOTAL	$	20,334	$	3,619	$	407	$	24,360	$	46,775	$	71,135

⁽¹⁾  Acquired loans exclude PCI loans.

⁽²⁾  Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $22.1 million.

	December 31, 2016
	Past Due and Accruing								Nonaccrual Loans (2)		Total Delinquent and Nonaccrual Loans
	30-59 Days		60-89  Days		90 or More Days		Total
	(Dollars in thousands)
Legacy Loans
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	480		—		—		480		3,672		4,152
Hotel & Motel	1,836		3,137		—		4,973		1,392		6,365
Gas Station & Car Wash	362		—		—		362		3,690		4,052
Mixed Use	—		—		—		—		1,305		1,305
Industrial & Warehouse	—		697		—		697		1,922		2,619
Other	2,871		—		—		2,871		4,007		6,878
Real Estate—Construction	—		1,513		—		1,513		1,300		2,813
Commercial Business	558		815		—		1,373		9,371		10,744
Trade Finance	—		500		—		500		2,056		2,556
Consumer and Other	146		58		305		509		229		738
Subtotal	$	6,253	$	6,720	$	305	$	13,278	$	28,944	$	42,222
Acquired Loans (1)
Real Estate—Residential	$	—	$	—	$	—	$	—	$	679	$	679
Real Estate—Commercial
Retail	1,611		—		—		1,611		1,871		3,482
Hotel & Motel	95		—		—		95		4,501		4,596
Gas Station & Car Wash	68		340		—		408		993		1,401
Mixed Use	—		—		—		—		48		48
Industrial & Warehouse	257		—		—		257		—		257
Other	350		—		—		350		2,144		2,494
Real Estate—Construction	—		—		—		—		—		—
Commercial Business	1,303		684		—		1,987		345		2,332
Trade Finance	—		—		—		—		—		—
Consumer and Other	331		25		—		356		549		905
Subtotal	$	4,015	$	1,049	$	—	$	5,064	$	11,130	$	16,194
TOTAL	$	10,268	$	7,769	$	305	$	18,342	$	40,074	$	58,416

⁽¹⁾  Acquired loans exclude PCI loans.

⁽²⁾  Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $15.9 million.

Loans accounted for under ASC 310-30 are generally considered accruing and performing loans and the accretable discount is accreted to interest income over the estimate life of the loan when cash flows are reasonably estimable. Accordingly, PCI loans that are contractually past due are still considered to be accruing and performing loans. The loans may be classified as nonaccrual if the timing and amount of future cash flows is not reasonably estimable.

The following tables present the risk rating for Legacy Loans and Acquired Loans as of December 31, 2017 and December 31, 2016 by class of loans:

	December 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Total
	(Dollars in thousands)
Legacy Loans:
Real Estate—Residential	$	33,557	$	1,147	$	1,439	$	—	$	36,143
Real Estate—Commercial
Retail	1,640,809		32,723		17,856		—		1,691,388
Hotel & Motel	1,224,597		19,358		8,877		—		1,252,832
Gas Station & Car Wash	737,485		9,013		590		—		747,088
Mixed Use	421,755		4,581		1,477		—		427,813
Industrial & Warehouse	577,344		16,716		24,317		—		618,377
Other	1,133,188		30,030		53,995		—		1,217,213
Real Estate—Construction	219,583		—		3,052		—		222,635
Commercial Business	1,389,043		35,640		65,912		—		1,490,595
Trade Finance	152,583		2,200		1,372		—		156,155
Consumer and Other	477,370		5		908		—		478,283
Subtotal	$	8,007,314	$	151,413	$	179,795	$	—	$	8,338,522
Acquired Loans:
Real Estate—Residential	$	13,369	$	262	$	—	$	—	$	13,631
Real Estate—Commercial
Retail	630,555		6,921		20,797		—		658,273
Hotel & Motel	275,191		4,247		24,987		—		304,425
Gas Station & Car Wash	194,063		2,872		8,992		—		205,927
Mixed Use	94,864		5,725		14,738		—		115,327
Industrial & Warehouse	250,049		14,973		16,358		265		281,645
Other	568,545		19,848		33,335		—		621,728
Real Estate—Construction	93,777		—		—		—		93,777
Commercial Business	236,705		8,593		44,964		12		290,274
Trade Finance	7,455		—		3,054		—		10,509
Consumer and Other	162,495		37		6,202		85		168,819
Subtotal	$	2,527,068	$	63,478	$	173,427	$	362	$	2,764,335
Total	$	10,534,382	$	214,891	$	353,222	$	362	$	11,102,857

	December 31, 2016
	Pass		Special Mention		Substandard		Doubtful/Loss		Total
	(Dollars in thousands)
Legacy Loans:
Real Estate—Residential	$	34,283	$	223	$	2,883	$	—	$	37,389
Real Estate—Commercial
Retail	1,303,452		18,929		15,430		—		1,337,811
Hotel & Motel	1,187,709		12,763		9,026		—		1,209,498
Gas Station & Car Wash	643,282		7,259		3,690		—		654,231
Mixed Use	375,312		—		1,467		—		376,779
Industrial & Warehouse	478,528		29,830		13,745		—		522,103
Other	969,024		22,220		41,017		—		1,032,261
Real Estate—Construction	159,230		14,745		1,300		—		175,275
Commercial Business	1,032,232		15,919		65,885		95		1,114,131
Trade Finance	68,051		5,673		7,670		—		81,394
Consumer and Other	179,864		1		829		—		180,694
Subtotal	$	6,430,967	$	127,562	$	162,942	$	95	$	6,721,566
Acquired Loans:
Real Estate—Residential	$	18,007	$	1,809	$	679	$	—	$	20,495
Real Estate—Commercial
Retail	772,465		9,860		21,110		—		803,435
Hotel & Motel	328,396		5,419		18,233		—		352,048
Gas Station & Car Wash	249,379		8,437		11,338		—		269,154
Mixed Use	118,643		3,105		12,505		8		134,261
Industrial & Warehouse	321,040		31,819		9,048		315		362,222
Other	736,385		23,286		29,099		—		788,770
Real Estate—Construction	78,838		—		—		—		78,838
Commercial Business	649,186		31,340		37,265		99		717,890
Trade Finance	70,535		61		2,938		—		73,534
Consumer and Other	214,437		958		5,949		1,432		222,776
Subtotal	$	3,557,311	$	116,094	$	148,164	$	1,854	$	3,823,423
Total	$	9,988,278	$	243,656	$	311,106	$	1,949	$	10,544,989

The following table presents loans sold from loans held for investment or transferred from held for investment to held for sale during the year endedDecember 31, 2017 and 2016 by portfolio segment:

	Year ended December 31,
	2017		2016
	(Dollars in thousands)
Sales or reclassification to held for sale
Real Estate - Commercial	$	429	$	5,920
Real Estate - Construction	—		—
Commercial Business	—		3,457
Consumer	—		2,508
Total	$	429	$	11,885

The following table presents loans by portfolio segment and impairment method at December 31, 2017 and December 31, 2016:

	December 31, 2017
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(Dollars in thousands)
Impaired loans (recorded investment)	$	—		$	53,980		$	1,300		$	50,055		$	6,935		$	2,079		$	114,349
Specific allowance	$	—		$	1,624		$	—		$	3,661		$	3		$	35		$	5,323
Specific allowance to impaired loans	N/A			3.01		%	N/A			7.31		%	0.04		%	1.68		%	4.66		%
Other loans	$	49,774		$	8,088,056		$	315,112		$	1,730,814		$	159,729		$	645,023		$	10,988,508
General allowance	$	88		$	56,040		$	930		$	17,094		$	1,713		$	3,353		$	79,218
General allowance to other loans	0.18		%	0.69		%	0.30		%	0.99		%	1.07		%	0.52		%	0.72		%
Total loans outstanding	$	49,774		$	8,142,036		$	316,412		$	1,780,869		$	166,664		$	647,102		$	11,102,857
Total allowance for loan losses	$	88		$	57,664		$	930		$	20,755		$	1,716		$	3,388		$	84,541
Total allowance to total loans	0.18		%	0.71		%	0.29		%	1.17		%	1.03		%	0.52		%	0.76		%

	December 31, 2016
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(Dollars in thousands)
Impaired loans (recorded investment)	$	3,562		$	93,088		$	1,300		$	35,218		$	6,029		$	1,164		$	140,361
Specific allowance	$	—		$	2,002		$	—		$	4,493		$	864		$	50		$	7,409
Specific allowance to impaired loans	N/A			2.15		%	N/A			12.76		%	14.33		%	4.30		%	5.28		%
Other loans	$	54,322		$	7,749,485		$	252,813		$	1,796,803		$	148,899		$	402,306		$	10,404,628
General allowance	$	209		$	47,915		$	1,621		$	19,054		$	1,033		$	2,102		$	71,934
General allowance to other loans	0.38		%	0.62		%	0.64		%	1.06		%	0.69		%	0.52		%	0.69		%
Total loans outstanding	$	57,884		$	7,842,573		$	254,113		$	1,832,021		$	154,928		$	403,470		$	10,544,989
Total allowance for loan losses	$	209		$	49,917		$	1,621		$	23,547		$	1,897		$	2,152		$	79,343
Total allowance to total loans	0.36		%	0.64		%	0.64		%	1.29		%	1.22		%	0.53		%	0.75		%

Under certain circumstances, the Company provides borrowers relief through loan modifications. These modifications are either temporary in nature (“temporary modifications”) or are more substantive. At December 31, 2017, total modified loans were $78.5 million, compared to $70.9 million at December 31, 2016. The temporary modifications generally consist of interest only payments for a three to six month period, whereby principal payments are deferred. At the end of the modification period, the remaining principal balance is re-amortized based on the original maturity date. Loans subject to temporary modifications are generally downgraded to Substandard or Special Mention. At the end of the modification period, the loan either 1) returns to the original contractual terms; 2) is further modified and accounted for as a troubled debt restructuring in accordance with ASC 310-10-35; or 3) is disposed of through foreclosure or liquidation.

Troubled Debt Restructurings (“TDRs”) of loans are defined by ASC 310-40, Troubled Debt Restructurings by Creditors, and ASC 470-60, Troubled Debt Restructurings by Debtors, and evaluated for impairment in accordance with ASC 310-10-35. The concessions may be granted in various forms, including reduction in the stated interest rate, reduction in the amount of principal amortization, forgiveness of a portion of a loan balance or accrued interest, or extension of the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy.

A summary of TDRs on accrual and nonaccrual by type of concession as of December 31, 2017, December 31, 2016, and December 31, 2015 is presented below:

	December 31, 2017
	TDRs on accrual								TDRs on nonaccrual								Total
	Real estate - Commercial		Commercial Business		Other		Sub-Total		Real estate - Commercial		Commercial Business		Other		Sub-Total
	(Dollars in thousands)
Payment concession	$	22,550	$	376	$	—	$	22,926	$	3,071	$	170	$	—	$	3,241	$	26,167
Maturity / Amortization concession	4,768		25,584		7,442		37,794		1,536		5,264		98		6,898		44,692
Rate concession	5,444		996		90		6,530		1,083		18		—		1,101		7,631
Principal forgiveness	—		—		—		—		—		—		—		—		—
Total	$	32,762	$	26,956	$	7,532	$	67,250	$	5,690	$	5,452	$	98	$	11,240	$	78,490

	December 31, 2016
	TDRs on accrual								TDRs on nonaccrual								Total
	Real estate - Commercial		Commercial Business		Other		Sub-Total		Real estate - Commercial		Commercial Business		Other		Sub-Total
	(Dollars in thousands)
Payment concession	$	16,358	$	29	$	—	$	16,387	$	4,417	$	1,717	$	—	$	6,134	$	22,521
Maturity / Amortization concession	1,840		17,471		4,600		23,911		1,313		6,130		2,287		9,730		33,641
Rate concession	6,856		1,665		55		8,576		5,590		387		155		6,132		14,708
Principal forgiveness	—		—		—		—		—		—		—		—		—
Total	$	25,054	$	19,165	$	4,655	$	48,874	$	11,320	$	8,234	$	2,442	$	21,996	$	70,870

	December 31, 2015
	TDRs on accrual								TDRs on nonaccrual								Total
	Real estate - Commercial		Commercial Business		Other		Sub-Total		Real estate - Commercial		Commercial Business		Other		Sub-Total
	(Dollars in thousands)
Payment concession	$	11,604	$	375	$	—	$	11,979	$	3,891	$	2,410	$	—	$	6,301	$	18,280
Maturity / Amortization concession	4,009		18,192		5,311		27,512		1,583		6,818		2,297		10,698		38,210
Rate concession	7,215		1,278		—		8,493		6,445		641		166		7,252		15,745
Principal forgiveness	—		—		—		—		—		—		—		—		—
Total	$	22,828	$	19,845	$	5,311	$	47,984	$	11,919	$	9,869	$	2,463	$	24,251	$	72,235

TDRs on accrual status are comprised of loans that were accruing at the time of restructuring and for which the Bank anticipates full repayment of both principal and interest under the restructured terms. TDRs that are on nonaccrual can be returned to accrual status after a period of sustained performance, generally determined to be six months of timely payments as modified. Sustained performance includes the periods prior to the modification if the prior performance met or exceeded the modified terms. TDRs on accrual status at December 31, 2017 were comprised of 24 commercial real estate loans totaling $32.8 million, 27 commercial business loans totaling $27.0 million and 56 consumer and other loans totaling $7.5 million. TDRs on accrual status at December 31, 2016 were comprised of 20 commercial real estate loans totaling $25.1 million, 23 commercial business loans totaling $19.2 million, and 19 consumer and other loans totaling $4.7 million. TDRs on accrual status at December 31, 2015 were comprised of 24 commercial real estate loans totaling $22.8 million, 28 commercial business loans totaling $19.8 million, and 4 consumer loans totaling $5.3 million. Management expects that the TDRs on accrual status as of December 31, 2017, which were all performing in accordance with their restructured terms, will continue to comply with the restructured terms because of the reduced principal or interest payments on these loans. TDRs that were restructured at market interest rates and had sustained performance as agreed under the modified loan terms may be reclassified as non-TDRs after each year end but are still monitored for potential impairment.

The Company has allocated $4.8 million, $5.3 million, and $5.7 million of specific reserves to TDRs as of December 31, 2017, 2016, and 2015, respectively. As of December 31, 2017, 2016, and 2015 the Company did not have any outstanding commitments to extend additional funds to these borrowers.

The following table presents loans by class modified as TDRs that occurred during the years ended December 31, 2017, 2016, and 2015:

	For The Years Ended December 31,
	2017					2016					2015
	Number of Loans	Pre-Modification		Post-Modification		Number of Loans	Pre-Modification		Post-Modification		Number of Loans	Pre-Modification		Post-Modification
	(Dollars in thousands)
Legacy Loans:
Real Estate - Residential	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Real Estate - Commercial
Retail	2	1,082		1,082		—	—		—		2	750		733
Hotel & Motel	1	1,044		1,044		—	—		—		—	—		—
Gas Station & Car Wash	—	—		—		—	—		—		2	383		351
Mixed Use	—	—		—		—	—		—		2	437		407
Industrial & Warehouse	1	465		465		—	—		—		—	—		—
Other	—	—		—		3	1,675		6,824		2	1,762		1,700
Real Estate - Construction	—	—		—		—	—		—		—	—		—
Commercial business	14	8,507		8,507		12	12,311		7,413		18	9,171		13,234
Trade Finance	—	—		—		—	—		—		2	7,623		2,208
Consumer and Other	—	—		—		1	—		91		1	248		237
Subtotal	18	$	11,098	$	11,098	16	$	13,986	$	14,328	29	$	20,374	$	18,870
Acquired Loans:
Real Estate - Residential	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Real Estate - Commercial
Retail	3	1,642		1,642		1	1,377		1,335		—	—		—
Hotel & Motel	1	482		482		—	—		—		—	—		—
Gas Station & Car Wash	—	—		—		—	—		—		—	—		—
Mixed Use	—	—		—		—	—		—		3	425		416
Industrial & Warehouse	—	—		—		—	—		—		—	—		—
Other	2	6,946		6,946		—	—		—		—	—		—
Real Estate - Construction	—	—		—		—	—		—		—	—		—
Commercial business	8	4,224		4,224		1	13		11		1	56		13
Trade Finance	1	2,983		2,983		—	—		—		—	—		—
Consumer and Other	—	—		—		1	30		25		1	115		104
Subtotal	15	$	16,277	$	16,277	3	$	1,420	$	1,371	5	$	596	$	533
Total	33	$	27,375	$	27,375	19	$	15,406	$	15,699	34	$	20,970	$	19,403

The specific reserves for the TDRs described above as of December 31, 2017, 2016, and 2015 were $1.4 million, $1.2 million, and $2.9 million, respectively, and the charge offs for the years ended December 31, 2017, 2016, 2015 and were $0, $4 thousand, and $42 thousand respectively.

The following table presents loans by class for TDRs that have been modified within the previous twelve months and have subsequently had a payment default during the years ended December 31, 2017, 2016, and 2015:

	For The Years Ended December 31,
	2017			2016			2015
	Number of Loans	Balance		Number of Loans	Balance		Number of Loans	Balance
	(Dollars in thousands)
Legacy Loans:
Real Estate - Commercial
Retail	—	$	—	—	$	—	—	$	—
Hotel & Motel	—	—		—	—		—	—
Gas Station & Car Wash	—	—		—	—		1	121
Mixed Use	—	—		—	—		1	103
Industrial & Warehouse	—	—		—	—		—	—
Other	—	—		—	—		1	307
Commercial Business	2	178		4	580		4	2,091
Consumer and Other	—	—		—	—		—	—
Subtotal	2	$	178	4	$	580	7	$	2,622
Acquired Loans:
Real Estate - Commercial
Retail	—	$	—	—	$	—	—	$	—
Hotel & Motel	1	482		—	—		—	—
Mixed Use	—	—		—	—		1	63
Gas Station & Car Wash	—	—		—	—		—	—
Industrial & Warehouse	—	—		—	—		—	—
Other	1	2,977		—	—		—	—
Commercial Business	1	40		1	11		—	—
Consumer and Other	—	—		1	25		1	104
Subtotal	3	$	3,499	2	$	36	2	$	167
Total	5	$	3,677	6	$	616	9	$	2,789

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. The specific reserves for the TDRs described above as of December 31, 2017, 2016, and 2015 were $60 thousand, $371 thousand, and $303 thousand respectively, and the charge offs for the years ended December 31, 2017, 2016, and 2015 were $0, $4 thousand, and $0 respectively.

The two Legacy Loans that subsequently defaulted in 2017 were modified through payment concession or maturity concession. The payment concession was comprised of one commercial business loan totaling $40 thousand. The maturity concession was comprised of one commercial business loan totaling $138 thousand.

The three Acquired Loans that subsequently defaulted in 2017 were modified through payment concessions or maturity concession. The maturity concession was comprised of one commercial business loan totaling $40 thousand. There were two real estate loans totaling $3.5 million modified through payment concessions.

The four Legacy Loans that subsequently defaulted in 2016 were modified through payment concessions or maturity concession. The payment concessions were comprised of three commercial business loans totaling $490 thousand. The maturity concession was comprised of one commercial business loan totaling $90 thousand.

The two Acquired Loans that subsequently defaulted in 2016 were modified through payment concession or maturity concession. The payment concession was comprised of one commercial business loan totaling $11 thousand. There was one consumer and other loan totaling $25 thousand modified through a maturity concession.

The seven Legacy Loans that subsequently defaulted in 2015 were modified through payment concessions or maturity concessions. The payment concessions were comprised of one real estate loan totaling $121 thousand and four commercial business loans totaling $2.1 million. The maturity concessions were comprised of two real estate loans totaling $410 thousand.

The two Acquired Loans that subsequently defaulted in 2015 were modified through payment concession or maturity concession. The payment concession was comprised of one real estate loan totaling $63 thousand. There was one consumer and other loan totaling $104 thousand modified through a maturity concession.

Related Party Loans

In the ordinary course of business, the Company enters into loan transactions with certain of its directors or associates of such directors (“Related Parties”). All loans to Related Parties were current as of December 31, 2017 and 2016, and the outstanding principal balance as of December 31, 2017 and 2016 was $41.0 million and $42.8 million, respectively. Loans to related parties at December 31, 2017 consisted of $40.0 million in commercial real estate loans and $1.0 million in commercial loans. Loans to related parties at December 31, 2016 consisted of $40.7 million in commercial real estate loans and $2.1 million in commercial loans.

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Goodwill and Other Intangibles Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying amount of the Company’s goodwill as of December 31, 2017 and 2016 was $464.5 million and $463.0 million, respectively. Goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. Management assessed the qualitative factors related to intangible assets and goodwill and for 2017 to determine whether it was more-likely-than-not that the fair value was less than its carrying amount. Based on the analysis of these factors, management determined that it was more-likely-than-not that intangible assets were not impaired and that the fair value of goodwill exceeded the carrying value and that the two-step goodwill impairment test was not needed. Goodwill is not amortized for book purposes and is not tax deductible.

During the fourth quarter of 2016, the Company made a net adjustment of $1.4 million to the deferred tax assets and taxes receivable acquired from Wilshire which reduced the previous goodwill recorded from the transaction by $1.4 million. Subsequently in first quarter of 2017, the Company made a net adjustment of $978 thousand to OREO and deferred tax assets acquired from Wilshire which increased goodwill recorded from the Wilshire transaction by this amount. During the second quarter of 2017, the Company made a final adjustment of $475 thousand to deferred tax assets which increased goodwill by the same amount. These adjustments were made to reflect new information obtained about facts and circumstances that existed as of the acquisition date in accordance with ASC 805-10-25-13. At December 31, 2017, goodwill related to the acquisition of Wilshire totaled $359.0 million.

The following table provides information regarding the amortization of core deposit intangibles at December 31, 2017 and 2016:

		December 31,
		2017					2016
	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
		(Dollars in thousands)
Core deposit intangibles related to:
Center Financial	7 years	$	4,100	$	(3,966	)	$	4,100	$	(3,685	)
Pacific International Bank	7 years	604		(534		)	604		(467		)
Foster Bankshares	10 years	2,763		(1,636		)	2,763		(1,344		)
Wilshire Bancorp	10 years	18,138		(2,946		)	18,138		(883		)
Total		$	25,605	$	(9,082	)	$	25,605	$	(6,379	)

In July 2016, the Company recorded $18.1 million in core deposits intangibles from the acquisition of Wilshire. Total amortization expense on core deposit intangibles was $2.7 million and $1.7 million for the years ended December 31, 2017 and 2016, respectively. The increase in core deposit intangibles expenses for 2017 was due to a full year amortization of Wilshire related core deposit intangibles compared to only five months of amortization in 2016. The estimated future amortization expense over the next five years for core deposit intangibles is as follows: $2.5 million in 2018, $2.2 million in 2019, $2.1 million in 2020, $2.0 million in 2021, and $1.9 million in 2022.

In light of the Tax Cuts and Jobs Act that was enacted on December 22, 2017, the Company performed an analysis on its remaining core deposit intangibles to assess the potential impact from the reduction in corporate tax rates on core deposit intangibles. As core deposit intangibles represents the after tax cash flow savings on acquired core deposits, a change in tax rates could potentially result in an impairment to remaining core deposits intangibles. The Company determined that it was more-likely-than-not that the remaining core deposit intangibles were not impaired as a reduction in corporate tax rates would potentially increase after tax cash flows.

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Premises and Equipment (Notes)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Premises and Equipment

PREMISES AND EQUIPMENT

The following table provides information regarding the premises and equipment at December 31, 2017 and 2016:

	December 31,
	2017			2016
	(Dollars in thousands)
Land	$	11,244		$	13,723
Building and improvements	23,127			21,315
Furniture, fixtures, and equipment	25,953			23,597
Leasehold improvements	27,018			22,494
Software/License	8,389			6,802
	95,731			87,931
Less: Accumulated depreciation and amortization	(39,017		)	(32,615		)
Total premises and equipment, net	$	56,714		$	55,316

Depreciation and amortization expense totaled $9.3 million, $8.1 million, and $7.0 million for 2017, 2016, and 2015, respectively. In 2017, the Company sold buildings and land related to three former branch locations for total cash proceeds of $4.9 million for a net gain of $808 thousand.

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Deposits

12 Months Ended

Dec. 31, 2017

Banking and Thrift [Abstract]

Deposits

The aggregate amount of time deposits in denominations of more than $250 thousand at December 31, 2017 and 2016, was $1.28 billion and $1.08 billion, respectively. Included in time deposits of more than $250 thousand were $300.0 million in California State Treasurer’s deposits at December 31, 2017 and 2016. The California State Treasurer’s deposits are subject to withdrawal based on the State’s periodic evaluations. The Company is required to pledge eligible collateral of at least 110% of outstanding deposits. At December 31, 2017 and 2016, securities with carrying values of approximately $337.7 million and $371.6 million, respectively, were pledged as collateral for the California State Treasurer’s deposits.

The Company also utilizes brokered deposits as a secondary source of funds. Total brokered deposits at December 31, 2017 and December 31, 2016, totaled $797.0 million and $724.7 million, respectively. Brokered deposits at December 31, 2017 consisted of $258.5 million in money market and NOW accounts and $538.5 million in time deposits accounts. Brokered deposits at December 31, 2016 consisted of $303.7 million in money market and NOW accounts and $421.0 million in time deposits accounts.

At December 31, 2017, the scheduled maturities for time deposits were as follows:

	December 31, 2017
	(Dollars in thousands)
Scheduled maturities in:
2018	$	3,855,966
2019	376,108
2020	17,386
2021	21,054
2022 and thereafter	4,149
Total	$	4,274,663

The following table indicates the maturity schedules of time deposits in amounts of more than $250 thousand as of December 31, 2017:

	More than $250,000
	(Dollars in thousands)
Three months or less	$	249,568
Over three months through six months	473,313
Over six months through twelve months	493,054
Over twelve months	63,173
Total	$	1,279,108

Interest expense on deposits is summarized as follows:

	Year Ended December 31,
	2017		2016		2015
	(Dollars in thousands)
Money market and NOW	$	31,856	$	21,136	$	12,430
Savings deposits	1,354		1,282		1,670
Time deposits	41,692		25,673		19,312
Total deposit interest expense	$	74,902	$	48,091	$	33,412

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Borrowings

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Borrowings

BORROWINGS

The Company maintains a secured credit facility with the FHLB against which the Bank may take advances. The borrowing capacity is limited to the lower of 25% of the Bank’s total assets or the Bank’s collateral capacity, which was $3.54 billion and $3.38 billion at December 31, 2017 and 2016, respectively. The terms of this credit facility require the Bank to pledge eligible collateral with the FHLB equal to at least 100% of outstanding advances. The Company also has an unsecured credit facility with the FHLB totaling $91.0 million at December 31, 2017.

Real estate secured loans with a carrying amount of approximately $4.91 billion and $5.53 billion were pledged as collateral for borrowings from the FHLB at December 31, 2017 and 2016, respectively. At December 31, 2017 and 2016, other than FHLB stock, no securities were pledged as collateral for borrowings from the FHLB.

At December 31, 2017 and 2016, FHLB advances were $1.16 billion and $754.3 million, and had a weighted average effective interest rate of 1.63% and 1.22%, respectively which is net of any discounts on acquired borrowing. FHLB borrowing at December 31, 2017 had various maturities through December 2022. At December 31, 2017 and December 31, 2016, $0 and $20.2 million, respectively, of the advances were putable advances. The original rate on FHLB advances as of December 31, 2017 ranged between 0.94% and 2.48%. At December 31, 2017, the Company had a remaining borrowing capacity of $2.32 billion. The Company acquired $200.0 million in FHLB advances from the acquisition of Wilshire during the third quarter of 2016, of which $100.0 million was repaid in the same quarter.

At December 31, 2017, the Company also had $69.9 million in overnight federal funds purchased from lines at other banks. There were no federal funds purchased from other banks at December 31, 2016. Total FHLB advances and federal funds purchased at December 31, 2017 was $1.23 billion compared to $754.3 million at December 31, 2016.

At December 31, 2017, the contractual maturities for FHLB advances and federal funds purchased were as follows:

	December 31, 2017
Scheduled maturities in:	(Dollars in thousands)
2018	$	429,900
2019	322,693
2020	185,000
2021	145,000
2022 and thereafter	145,000
Total	$	1,227,593

As a member of the Federal Reserve Bank system, the Company may also borrow from the Federal Reserve Bank of San Francisco. The maximum amount that we may borrow from the Federal Reserve Bank’s discount window is up to 95% of the outstanding principal balance of the qualifying loans and the fair value of the securities that we pledge. At December 31, 2017, the principal balance of the qualifying loans pledged at the Federal Reserve Bank was $732.0 million and there were no investment securities pledged. There were no borrowings outstanding against this line.

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Subordinated Debentures

12 Months Ended

Dec. 31, 2017

Subordinated Borrowings [Abstract]

Subordinated Debentures

SUBORDINATED DEBENTURES

At December 31, 2017, the Company had nine wholly-owned subsidiary grantor trusts that had issued $126.0 million of pooled trust preferred securities. Trust preferred securities accrue and pay distributions periodically at specified annual rates as provided in the indentures. The trusts used the net proceeds from the offering to purchase a like amount of subordinated debentures (the “Debentures”) of the Company. The Debentures are the sole assets of the trusts. The Company’s obligations under the subordinated debentures and related documents, taken together, constitute a full and unconditional guarantee by the Company of the obligations of the trusts. The trust preferred securities are mandatorily redeemable upon the maturity of the Debentures, or upon earlier redemption as provided in the indentures. The Company has the right to redeem the Debentures in whole (but not in part) on or after specific dates, at a redemption price specified in the indentures plus any accrued but unpaid interest to the redemption date. The Company also has a right to defer consecutive payments of interest on the debentures for up to five years.

The following table is a summary of trust preferred securities and debentures at December 31, 2017:

Issuance Trust	Issuance Date	Trust Preferred Security Amount		Subordinated Debentures Amount		Rate Type	Current Rate	Maturity Date
		(Dollars in thousands)
Nara Capital Trust III	06/05/2003	$	5,000	$	5,155	Variable	4.74%	06/15/2033
Nara Statutory Trust IV	12/22/2003	5,000		5,155		Variable	4.21%	01/07/2034
Nara Statutory Trust V	12/17/2003	10,000		10,310		Variable	4.55%	12/17/2033
Nara Statutory Trust VI	03/22/2007	8,000		8,248		Variable	3.24%	06/15/2037
Center Capital Trust I	12/30/2003	18,000		13,827		Variable	4.21%	01/07/2034
Wilshire Statutory Trust II	03/17/2005	20,000		15,314		Variable	3.39%	03/17/2035
Wilshire Statutory Trust III	09/15/2005	15,000		10,767		Variable	2.99%	09/15/2035
Wilshire Statutory Trust IV	07/10/2007	25,000		17,479		Variable	2.97%	09/15/2037
Saehan Capital Trust I	03/30/2007	20,000		14,598		Variable	3.31%	06/30/2037
TOTAL ISSUANCE		$	126,000	$	100,853

The Company’s investment in the common trust securities of the issuer trusts of $3.9 million at both December 31, 2017 and December 31, 2016, is included in other assets. Although the subordinated debt issued by the trusts are not included as a component of stockholders’ equity in the consolidated balance sheets, the debt is treated as capital for regulatory purposes. The trust preferred security debt issuances are includable in Tier I capital up to a maximum of 25% of capital on an aggregate basis. Any amount that exceeds 25% qualifies as Tier 2 capital.

Under the “Merger and Acquisition Transition Provisions” in BASEL III, if a depository institution holding company of $15 billion or more acquires a depository institution holding company with total consolidated assets of less than $15 billion as of December 31, 2009, the non-qualifying capital instruments of the resulting organization will be subject to a phase-out schedule. The phase-out schedule ended in 2016 and therefore in accordance with BASEL III, the Company’s subordinated debenture will no longer qualify for Tier 1 treatment once the Company exceeds total consolidated assets of $15 billion or more since the Company had acquisitions subsequent to December 31, 2009. The subordinated debentures will be still be eligible for Tier 2 inclusion once the Company exceeds $15 billion or more in total consolidated assets.

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Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The following presents a summary of income tax provision follows for the years ended December 31:

	Current		Deferred			Total
	(Dollars in thousands)
2017
Federal	$	64,910	$	31,464		$	96,374
State	24,739		3,276			28,015
	$	89,649	$	34,740		$	124,389
2016
Federal	$	50,780	$	4,198		$	54,978
State	20,922		1,552			22,474
	$	71,702	$	5,750		$	77,452
2015
Federal	$	47,919	$	(1,393	)	$	46,526
State	16,548		17			16,565
	$	64,467	$	(1,376	)	$	63,091

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). Among other changes, the Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%. The Company has not yet completed accounting for the tax effects of enactment of the Tax Act; however, the Company has reasonably estimated the effects of the Tax Act and recorded provisional amounts in the Company’s financial statements as of December 31, 2017 in accordance with SEC Staff Accounting Bulletin No. 118 (“SAB 118”). The Company recorded a provisional amount increasing income tax provision expense by $25.4 million, included in federal deferred income tax provision for the year ended December 31, 2017 in the table above. This amount is comprised of the re-measurement of federal net deferred tax assets and re-evaluation of investments in affordable housing partnerships resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21% from 35%. The Company is still completing its analysis of the impact of the Tax Act and will record any adjustments to the provisional amount as a component of income tax expense during the measurement period provided for in SAB 118.

A reconciliation of the difference between the federal statutory income tax rate and the effective tax rate is shown in the following table for the years ended December 31:

	Year Ended December 31,
	2017		2016		2015
Statutory tax rate	35.00	%	35.00	%	35.00	%
State taxes-net of federal tax effect	7.04	%	7.28	%	7.21	%
Rate change - federal and state	9.36	%	—	%	—	%
CRA investment tax credit	(3.50	)%	(2.40	)%	(1.31	)%
Bank owned life insurance	(0.09	)%	(0.26	)%	(0.25	)%
Municipal securities	(0.45	)%	(0.22	)%	(0.15	)%
Nondeductible transaction costs	(0.02	)%	0.80	%	—	%
Other	(0.19	)%	0.31	%	0.11	%
Effective income tax rate	47.15	%	40.51	%	40.61	%

Deferred tax assets and liabilities at December 31, 2017 and 2016 are comprised of the following:

	At December 31,
	2017			2016
	(Dollars in thousands)
Deferred tax assets:
Purchase accounting fair value adjustment	$	21,508		$	42,009
Statutory bad debt deduction less than financial statement provision	20,162			26,574
Net operating loss carryforward	2,351			4,171
Investment security provision	593			1,646
State tax deductions	4,304			5,669
Accrued compensation	149			207
Deferred compensation	214			348
Mark to market on loans held for sale	764			1,244
Depreciation	221			3,157
Nonaccrual loan interest	6,272			7,330
Other real estate owned	1,753			1,507
FDIC loss share receivable	362			772
Unrealized loss on securities available for sale	8,961			9,989
Non-qualified stock option and restricted share expense	1,339			2,187
Goodwill	203			490
Other	3,053			7,063
Total Deferred Tax Assets	$	72,209		$	114,363
Deferred tax liabilities:
FHLB stock dividends	$	(695	)	$	(1,054	)
Deferred loan costs	(5,857		)	(7,085		)
State taxes deferred and other	(3,229		)	(6,629		)
Prepaid expenses	(1,542		)	(1,840		)
Amortization of intangibles	(5,236		)	(8,639		)
Lease expense	(447		)	(1,006		)
Total Deferred Tax Liabilities	$	(17,006	)	$	(26,253	)
Net deferred tax assets:	$	55,203		$	88,110

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluates both positive and negative evidence, including the existence of any cumulative losses in the current year and the prior two years, the amount of taxes paid in available carry-back years, the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. This analysis is updated quarterly and adjusted as necessary.

Based on the analysis, the Company has determined that a valuation allowance for deferred tax assets was not required as of December 31, 2017 and 2016.

A summary of the Company’s net operating loss carry-forwards is as follows:

	Federal					State
	Remaining Amount		Expires	Annual Limitation		Remaining Amount		Expires	Annual Limitation
	(Dollars in thousands)
2017
Saehan Bank (acquired by Wilshire)	$	2,940	2030	$	226	$	2,940	2030	$	226
Korea First Bank of New York	991		2019	497		—		N/A	—
Pacific International Bank	6,089		2032	420		—		N/A	—
Total	$	10,020		$	1,143	$	2,940		$	226
2016
Saehan Bank (acquired by Wilshire)	$	3,166	2030	$	226	$	3,166	2030	$	226
Korea First Bank of New York	1,488		2019	497		—		N/A	—
Pacific International Bank	6,509		2032	420		—		N/A	—
Total	$	11,163		$	1,143	$	3,166		$	226

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the state of California and various other states. The statute of limitations for the assessment of taxes for the consolidated Federal income tax return is closed for all tax years up to and including 2013. The expiration of the statute of limitations for the assessment of taxes for the various state income and franchise tax returns for the Company and subsidiaries varies by state. The Company is currently under examination by the California Franchise Tax Board (FTB) for the 2011, 2012, and 2013 tax years and by the New York State Department of Taxation for the 2013, 2014, and 2015 tax years. Wilshire Bancorp Inc. is currently under examination by the FTB for the 2011, 2012, and 2013 tax years. While the outcomes of the examinations are unknown, the Company does not expect any material adjustments.

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2017 and 2016 is as follows:

	At December 31,
	2017			2016
	(Dollars in thousands)
Balance at January 1,	$	2,187		$	1,816
Additions based on tax positions related to the prior year through acquisition	3			1,399
Expiration of the statute of limitations for assessment of taxes	—			(916		)
Settlements with taxing authorities	(65		)	(112		)
Balance at December 31,	$	2,125		$	2,187

The total amount of unrecognized tax benefits was $2.1 million at December 31, 2017 and $2.2 million at December 31, 2016 and is primarily for uncertainties related to California enterprise zone loan interest deductions taken in prior years. The total amount of tax benefits that, if recognized, would favorably impact the effective tax rate was $1.9 million and $1.6 million at December 31, 2017 and 2016, respectively. The Company expects the total amount of unrecognized tax benefits to decrease by $2.1 million within the next twelve months due to the settlement with the state tax authority.

The Company recognizes interest and penalties related to income tax matters in income tax expense. The Company had approximately $348 thousand and $306 thousand for interest and penalties accrued at December 31, 2017 and 2016, respectively.

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Stock-Based Compensation

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

The Company has a stock-based incentive plan (the “2016 Plan”) to award equity as a form of compensation. The 2016 Plan, was approved by the Company’s stockholders on September 1, 2016. The 2016 Plan provides for grants of stock options, stock appreciation rights (“SARs”), restricted stock, performance shares, and performance units (sometimes referred to individually or collectively as “awards”) to non-employee directors, employees, and consultants of the Company. Stock options may be either incentive stock options (“ISOs”), as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or nonqualified stock options (“NQSOs”). Stock options and restricted stock were assumed from the merger of Wilshire at substantially the same terms as those prior to the merger after applying the exchange ratio of 0.7034. These stock awards were issued to former Wilshire employees and directors through the 2016 Plan.

The 2016 Plan gives the Company flexibility to (i) attract and retain qualified non-employee directors, executives, other key employees, and consultants with appropriate equity-based awards to; (ii) motivate high levels of performance; (iii) recognize employee contributions to the Company’s success; and (iv) align the interests of the 2016 Plan participants with those of the Company’s stockholders. The plan initially had 2,400,000 shares available for grant to participants. The exercise price for shares under an ISO may not be less than 100% of fair market value on the date the award is granted under Code Section 422. Similarly, under the terms of the 2016 Plan, the exercise price for SARs and NQSOs may not be less than 100% of fair market value on the date of grant. Performance units are awarded to a participant at the market price of the Company’s common stock on the date of award (after the lapse of the restriction period and the attainment of the performance criteria). No minimum exercise price is prescribed for performance shares and restricted stock awarded under the 2016 Plan. All options not exercised generally expire 10 years after the date of grant.

ISOs, SARs and NQSOs have vesting periods of three to five years and have 10-year contractual terms. Restricted stock, performance shares, and performance units will be granted with a restriction period of not less than one year from the grant date for performance-based awards and not more than three years from the grant date for time-based vesting of grants. Compensation expense for awards is recorded over the vesting period. The grant date fair value of stock option awards are estimated on the date of grant using the Black-Scholes option valuation model. The expected life (estimated period of time outstanding) of options is estimated using the simplified method. The expected volatility is based on historical volatility for a period equal to the stock option’s expected life. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant.

The Company had another stock-based incentive plan, the 2007 Equity Incentive Plan (“2007 Plan”), which was approved by stockholders in May 2007. Under the terms of this plan, awards cannot be granted under the plan more than ten years after the plan adoption date. Therefore, subsequent to May 2017, equity awards can no longer be issued from this plan.

The 2016 plan has 1,341,621 shares available for future grants as of December 31, 2017.

The total shares reserved for issuance will serve as the underlying value for all equity awards under the 2016 Plan. With the exception of the shares underlying stock options and restricted stock awards, the board of directors may choose to settle the awards by paying the equivalent cash value or awarding the appropriate number of shares. For the year ended December 31, 2017, 165,612 shares of restricted and performance unit awards were granted under the 2007 and 2016 Plans. The fair value of performance unit awards granted is the fair market value of the Company’s common stock on the date of grant. In 2017, 2016 and 2015, 0, 1,281,552, and 0 options were granted, respectively.

The following is a summary of stock option activity under the 2007 and 2016 Plans for the year ended December 31, 2017:

	Number of Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding - January 1, 2017	1,603,876		$	15.28
Granted	—		—
Exercised	(215,270	)	8.46
Expired	(250,762	)	21.61
Forfeited	(62,421	)	17.17
Outstanding - December 31, 2017	1,075,423		$	15.06	7.26	$	3,433,460
Options exercisable - December 31, 2017	644,086		$	13.81	6.54	$	2,857,618

The following is a summary of restricted and performance unit activity under the 2007 and 2016 Plans for the year ended December 31, 2017:

	Number of Shares		Weighted- Average Grant Date Fair Value
Outstanding - January 1, 2017	398,658		$	16.16
Granted	165,612		16.77
Vested	(149,792	)	16.15
Forfeited	(35,059	)	16.30
Outstanding - December 31, 2017	379,419		$	16.42

The total fair value of restricted and performance units vested for the year ended December 31, 2017, 2016, and 2015 was $2.7 million, $1.9 million, and $899 thousand respectively.

The amount charged against income related to stock based payment arrangements was $3.2 million, $3.0 million, and $1.0 million for the years ended December 31, 2017, 2016 and 2015, respectively.

At December 31, 2017, unrecognized compensation expense related to non-vested stock option grants and restricted and performance units aggregated $5.5 million, and is expected to be recognized over a remaining weighted average vesting period of 3 years.

The estimated annual stock-based compensation expense as of December 31, 2017 for each of the succeeding years is indicated in the table below:

	Stock Based Compensation Expense
	(Dollars in thousands)
For the year ended December 31:
2018	$	2,757
2019	1,466
2020	864
2021	420
2022	42
Total	$	5,549

On August, 21, 2017 the Company adopted the Hope Employee Stock Purchase Plan (“ESPP”). The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions which build up between the offering date and the purchase date. At the purchase date, the Company uses the accumulated funds to purchase shares in the Company on behalf of the participating employees at a 10% discount from the closing price of the Company’s common shares. The closing price is the lower of either the closing price on the first day of the offering period or on the closing price on the purchase date. The dollar amount of common shares purchased under the ESPP must not exceed 20% of the participating employee’s base salary, subject to a cap of $25 thousand in stock value based on the grant date. The ESPP is considered compensatory under GAAP and compensation expense for the ESPP is recognized as part of the Company’s stock based compensation expenses. The compensation expense for ESPP for the year ended December 31, 2017 was $64 thousand. The Company did not have any compensation expenses for the ESPP in 2016 or 2015.

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2017

Retirement Benefits [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

Deferred Compensation Plan— The Company established a deferred compensation plan that permits eligible officers, key executives and directors to defer a portion of their compensation. The deferred compensation plan is still in effect and was amended in 2007 to be in compliance with the new IRC §409(A) regulations. The deferred compensation, together with accrued accumulated interest, is distributable in cash after retirement or termination of service. The deferred compensation liabilities at December 31, 2017 and 2016 amounted to $1.1 million and $1.2 million, respectively, which are included in other liabilities in the accompanying consolidated statements of financial condition. Interest expense recognized under the deferred compensation plan totaled $21 thousand, $23 thousand and $25 thousand for 2017, 2016 and 2015, respectively.

The Company established and the Board approved a Long Term Incentive Plan (“LTIP”) that rewards the named executive officers (“NEO”) with deferred compensation if the Company meets certain performance goals, the NEOs meet individual performance goals, and the NEOs remain employed for a pre-determined period (between five and ten years, depending on the officer). Only two NEOs are currently participating in the LTIP. The Company accrued $455 thousand, $418 thousand, and $306 thousand in 2017, 2016, and 2015, respectively.

The Company has insured the lives of certain officers and directors who participate in the deferred compensation plan. The Company has also purchased life insurance policies and entered into split dollar life insurance agreements with certain directors and officers. Under the terms of the split dollar life insurance agreements, a portion of the death benefits received by the Company will be paid to beneficiaries named by the directors and officers.

401(k) Savings Plan— The Company established a 401(k) savings plan, which is open to all eligible employees who are 21 years old or over and have completed three months of service. The Company matches 75% of the first 8% of the employee’s compensation contributed. Employer matching is vested 25% after 2 years of service, 50% after 3 years of service, 75% after 4 years of service, and 100% after 5 or more years of service. Total employer contributions to the plan amounted to approximately $4.4 million, $2.6 million and $2.3 million for 2017, 2016 and 2015, respectively.

Post-Retirement Benefit Plans— In 2016, the Company assumed Wilshire’s Survivor Income Plan which was adopted in 2003 for the benefit of the directors and officers of the bank in order to encourage their continued employment and service, and to reward them for their past contributions. Wilshire had also entered into separate Survivor Income Agreements with officers and directors relating to the Survivor Income Plan. Under the terms of the Survivor Income Plan, each participant is entitled to a base amount of death proceeds as set forth in the participant’s election to participate, which base amount increases three percent per calendar year, but only until normal retirement age, which is 65. If the participant remains employed after age 65, the death benefit will be fixed at the amount determined at age 65. If a participant has attained age 65 prior to becoming a participant in the Survivor Income Plan, the death benefit shall be equal to the base amount set forth in their election to participate with no increases. We are obligated to pay any death benefit owed under the Survivor Income Plan in a lump sum within 90 days following the participant’s death.

In 2011, the Company assumed Center Bank’s Survivor Income Plan which was adopted in 2004 for the benefit of the directors and officers of the bank in order to encourage their continued employment and service, and to reward them for their past contributions. Under the terms of the Survivor Income Plan, each participant is entitled to a base amount of death proceeds as set forth in the participant’s election to participate. We are obligated to pay any death benefit owed under the Survivor Income Plan in a lump sum within 90 days following the participant’s death.

The participant’s rights under the Survivor Income Plans terminate upon termination of employment. Upon termination of employment (except for termination for cause), if the participant has achieved the vesting requirements outlined in the plan, the participant will have the option to convert the amount of death benefits calculated at such termination to a split dollar arrangement, provided such arrangement is available under bank regulations and/or tax laws. If available, the Bank and the participant will enter into a split dollar agreement and a split dollar policy endorsement. Under such an arrangement, the Bank would annually impute income to the officer or the director based on tax laws or rules in force upon conversion. The Company’s accumulated post-retirement benefit obligation at December 31, 2017 and 2016, was $7.8 million and $6.6 million, respectively.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company leases its premises under non-cancelable operating leases, and at December 31, 2017, the future minimum rental commitments under these leases are as follows:

	December 31, 2017
	(Dollars in thousands)
2018	$	14,055
2019	12,124
2020	9,774
2021	9,426
2022	5,456
Thereafter	15,863
	$	66,698

Operating lease expense recorded under such leases in 2017, 2016 and 2015 amounted to approximately $17.8 million, $14.7 million and $11.1 million, respectively.

Legal Contingencies

In the normal course of business, the Company is involved in various legal claims. Management has reviewed all legal claims against the Company with counsel for the fiscal year ended December 31, 2017, and has taken into consideration the views of such counsel as to the outcome of the claims. Accrued loss contingencies for all legal claims totaled approximately $414 thousand and $557 thousand at December 31, 2017 and December 31, 2016, respectively. It is reasonably possible we may incur losses in addition to the amounts we have accrued. However, at this time, we are unable to estimate the range of additional losses that are reasonably possible because of a number of factors, including the fact that certain of these litigation matters are still in their early stages and involve claims for which, at this point, we believe have little to no merit. Management has considered these and other possible loss contingencies and does not expect the amounts to be material to any of the consolidated financial statements.

Unfunded Commitments and Letters of Credit

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and other commercial letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. The Company’s exposure to credit loss in the event of nonperformance by the other party to commitments to extend credit and standby letters of credit and other commercial letters of credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for extending loan facilities to customers. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable; inventory; property, plant and equipment; and income-producing properties.

Commitments at December 31, 2017 and 2016 are summarized as follows:

	December 31,
	2017		2016
	(Dollars in thousands)
Commitments to Fund Low Income Housing Partnership Investments	$	38,467	$	24,409
Unused Credit Extensions	1,526,981		1,592,221
Standby Letters of Credit	74,748		63,753
Other Commercial Letters of Credit	74,147		52,125
	$	1,714,343	$	1,732,508

Commitments and letters of credit generally have variable rates that are tied to the prime rate. The amount of fixed rate commitments is not considered material to this presentation. From time to time, the Company enters into certain types of contracts that contingently require the Company to indemnify parties against third party claims and other obligations customarily indemnified in the ordinary course of the Company’s business. The terms of such obligations vary, and, generally, a maximum obligation is not explicitly stated. Therefore, the overall maximum amount of the obligations cannot be reasonably estimated. The most significant of these contracts relate to certain agreements with the Company’s officers and directors under which the Company may be required to indemnify such persons for liabilities arising out of their employment relationship. Historically, the Company has not been obligated to make significant payments for these obligations, and no liabilities have been recorded for these obligations in its consolidated statements of financial condition as of December 31, 2017 and 2016.

Mortgage-Banking Derivatives

The Company enters into various stand-alone mortgage-banking derivatives in order to hedge the risk associated with the fluctuation of interest rates. Changes in fair value are recorded as mortgage banking revenue. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. At December 31, 2017, the Company had approximately $4.8 million in interest rate lock commitments and $4.8 million in total forward sales commitments for the future delivery of residential mortgage loans. At December 31, 2016, the Company had approximately $23.7 million in interest rate lock commitments and $13.0 million in total forward sales commitments.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value. The fair value inputs of the instruments are classified and disclosed in one of the following categories pursuant to ASC 820:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. The quoted price shall not be adjusted for any blockage factor (i.e., size of the position relative to trading volume).

Level 2 - Pricing inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Fair value is determined through the use of models or other valuation methodologies, including the use of pricing matrices. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 - Pricing inputs are unobservable for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The inputs into the determination of fair value require significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

The Company uses the following methods and assumptions in estimating fair value disclosures for financial instruments. Financial assets and liabilities recorded at fair value on a recurring and non-recurring basis are listed as follows:

Securities Available for Sale

The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

The fair values of the Company’s Level 3 securities available for sale were measured using an income approach valuation technique. The primary inputs and assumptions used in the fair value measurement were derived from the securities’ underlying collateral which included discount rates, prepayment speeds, payment delays, and an assessment of the risk of default of the underlying collateral, among other factors. Significant increases or decreases in any of the inputs or assumptions would result in a significant increase or decrease in the fair value measurement.

Interest Rate Swaps

The Company offers interest rate swaps to certain loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans. The Company originates a variable rate loan and enters into a variable-to-fixed interest rate swap with the customer. The Company also enters into an offsetting swap with a correspondent bank. These back-to-back agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. The fair value of these derivatives is based on a discounted cash flow approach. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of interest rate swaps is classified as Level 2.

Impaired Loans

The fair values of impaired loans are generally measured for impairment using the practical expedients permitted by FASB ASC 310-10-35 including impaired loans measured at an observable market price (if available), or at the fair value of the loan’s collateral (if the loan is collateral dependent). Fair value of the loan’s collateral, when the loan is dependent on collateral, is determined by appraisals or independent valuation, less costs to sell of 8.5%. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and income approach. Adjustment may be made in the appraisal procses by the independent appraiser to adjust for differences between the comparable sales and income data available for similar loans and the underlying collateral. For commercial and industrial and asset backed loans, independent valuations may include a 20-60% discount for accounts receivable and a 50-70% discount for inventory. These result in a Level 3 classification.

Derivatives

The fair value of our derivative financial instruments is based on derivative valuation models using market data inputs as of the valuation date that can generally be verified and do not typically involve significant management judgments. (Level 2 inputs).

OREO

OREO is fair valued at the time the loan is foreclosed upon and the asset is transferred to OREO. The value is based primarily on third party appraisals, less costs to sell of 8.5% and result in a Level 3 classification of the inputs for determining fair value. OREO is reviewed and evaluated on at least an annual basis for additional impairment and adjusted to lower of cost or market accordingly, based on the same factors identified above.

Loans Held for Sale

Loans held for sale are carried at the lower of cost or fair value, as determined by outstanding commitments from investors, or based on recent comparable sales (Level 2 inputs), if available, and if not available, are based on discounted cash flows using current market rates applied to the estimated life and credit risk (Level 3 inputs) or may be assessed based upon the fair value of the collateral which is obtained from recent real estate appraisals (Level 3 inputs). These appraisals may utilize a single valuation approach or a combination of approaches including the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in Level 3 classification of the inputs for determining fair value.

Mortgage Banking Derivatives

Mortgage banking derivative instruments consist of interest rate lock commitments and forward sale contracts that trade in liquid markets. The fair value is based on the prices available from third party investors. Due to the observable nature of the inputs used in deriving the fair value, the valuation of mortgage banking derivatives are classified as Level 2.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

				Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2017			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Securities available-for-sale:
U.S. Government agency and U.S. Government sponsored enterprises:
Debt securities	$	—		$	—	$	—		$	—
Collateralized mortgage obligations	838,709			—		838,709			—
Mortgage-backed securities:
Residential	471,214			—		471,214			—
Commercial	301,365			—		301,365			—
Corporate securities	4,475			—		4,475			—
Municipal securities	82,537			—		81,429			1,108
Mutual funds	21,957			21,957		—			—
Interest rate swaps	(2,838		)	—		(2,838		)	—
Mortgage banking derivatives	33			—		33			—
Liabilities:
Interest rate swaps	(2,838		)	—		(2,838		)	—
Mortgage banking derivatives	5			—		5			—

				Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2016			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Securities available for sale:
U.S. Government agency and U.S. Government sponsored enterprises:
Debt securities	$	12,008		$	—	$	12,008		$	—
Collateralized mortgage obligations	705,667			—		705,667			—
Mortgage-backed securities:
Residential	602,952			—		602,952			—
Commercial	125,089			—		125,089			—
Corporate securities	11,127			—		11,127			—
Municipal securities	86,839			—		85,700			1,139
Mutual funds	13,058			13,058		—			—
Interest rate swaps	(1,565		)	—		(1,565		)	—
Mortgage banking derivatives	147			—		147			—
Liabilities:
Interest rate swaps	(1,565		)	—		(1,565		)	—
Mortgage banking derivatives	41			—		41			—

There were no transfers between Level 1, 2, and 3 during the period ended December 31, 2017 and 2016.

The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2017 and 2016:

	For the year ended December 31,
	2017			2016
	(Dollars in thousands)
Securities available for sale - municipal securities
Beginning Balance, January 1	$	1,139		$	1,166
Total losses included in other comprehensive income	(31		)	(27		)
Ending Balance, December 31	$	1,108		$	1,139

Assets measured at fair value on a non-recurring basis at December 31, 2017 and 2016 are summarized below:

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Impaired loans at fair value:
Real estate	$	6,086	$	—	$	—	$	6,086
Commercial business	3,320		—		—		3,320
Consumer	84		—		—		84
Other real estate owned	5,615		—		—		5,615

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Impaired loans at fair value:
Real estate	$	58,882	$	—	$	—	$	58,882
Commercial business	6,563		—		—		6,563
Consumer	253		—		—		253
Loans held for sale, net	3,788		—		3,788		—
Other real estate owned	21,990		—		—		21,990

For assets measured at fair value on a non-recurring basis, the total net (losses) gains, which include charge offs, recoveries, specific reserves, and gains and losses on sales recognized in 2017 and 2016 are summarized below:

	Year Ended December 31,
	2017			2016
	(Dollars in thousands)
Assets:
Impaired loans at fair value:
Real estate	$	(2,552	)	$	163
Commercial business	(5,424		)	(5,856		)
Trade finance	(1,187		)	1,739
Consumer	(912		)	(713		)
Loans held for sale, net	12			2,920
Other real estate owned	(1,962		)	2,245

Fair Value of Financial Instruments

Carrying amounts and estimated fair values of financial instruments, not previously presented, at December 31, 2017 and December 31, 2016 were as follows:

	December 31, 2017
	Carrying Amount		Estimated Fair Value		Fair Value Measurement
	(Dollars in thousands)
Financial Assets:
Cash and cash equivalents	$	492,000	$	492,000	Level 1
Interest bearing deposits in other financial institutions and other investments	53,366		52,960		Level 2/3
Loans held for sale	29,661		32,048		Level 2
Loans receivable—net	11,018,034		11,112,179		Level 3
FHLB stock	29,776		N/A		N/A
Accrued interest receivable	29,979		29,979		Level 2/3
Servicing assets	24,710		27,511		Level 3
Customers’ liabilities on acceptances	1,691		1,691		Level 2
Financial Liabilities:
Noninterest bearing deposits	$	2,998,734	$	2,998,734	Level 2
Saving and other interest bearing demand deposits	3,573,212		3,573,212		Level 2
Time deposits	4,274,663		4,263,585		Level 2
FHLB advances	1,157,693		1,220,529		Level 2
Federal funds purchased	69,900		69,900		Level 2
Subordinated debentures	100,853		100,853		Level 2
Accrued interest payable	15,961		15,961		Level 2
Acceptances outstanding	1,691		1,691		Level 2
	December 31, 2016
	Carrying Amount		Estimated Fair Value		Fair Value Measurement
	(Dollars in thousands)
Financial Assets:
Cash and cash equivalents	$	437,334	$	437,334	Level 1
Interest bearing deposits in other financial institutions and other investments	44,202		43,773		Level 2/3
Loans held for sale	22,785		24,492		Level 2
Loans receivable—net	10,463,989		10,666,642		Level 3
FHLB stock	21,964		N/A		N/A
Accrued interest receivable	26,880		26,880		Level 2/3
Servicing assets	26,457		29,030		Level 3
Customers’ liabilities on acceptances	2,899		2,899		Level 2
Financial Liabilities:
Noninterest bearing deposits	$	2,900,241	$	2,900,241	Level 2
Saving and other interest bearing demand deposits	3,703,352		3,703,352		Level 2
Time deposits	4,038,442		4,036,664		Level 2
FHLB advances	754,290		749,486		Level 2
Subordinated debentures	99,808		99,808		Level 2
Accrued interest payable	10,863		10,863		Level 2
Acceptances outstanding	2,899		2,899		Level 2

The carrying amount approximates estimated fair value for cash and cash equivalents, savings and other interest bearing demand deposits, customers’ and Bank’s liabilities on acceptances, noninterest bearing deposits, federal funds purchased, subordinated debentures, and variable rate loans or deposits that reprice frequently and fully. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. Fair value of SBA loans held for sale is based on market quotes. For fair value of non-SBA loans held for sale, see the measurement method discussed previously. Fair value of time deposits and debt is based on current rates for similar financing. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on their transferability. The fair value of commitments to fund loans represents fees currently charged to enter into similar agreements with similar remaining maturities and is not presented herein. The fair value of these financial instruments is not material to the consolidated financial statements.

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Derivative Financial Instruments

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

The Company offers a loan hedging program to certain loan customers. Through this program, the Company originates a variable rate loan with the customer. The Company and the customer will then enter into a fixed interest rate swap. Lastly, an identical offsetting swap is entered into by the Company with a correspondent bank. These “back-to-back” swap arrangements are intended to offset each other and allow the Company to book a variable rate loan, while providing the customer with a contract for fixed interest payments. In these arrangements, the Company’s net cash flow is equal to the interest income received from the variable rate loan originated with the customer. These customer swaps are not designated as hedging instruments and are recorded at fair value in other assets and other liabilities. The changes in fair value are recognized in the income statement in other income and fees.

At December 31, 2017 and 2016, the following interest rate swaps related to our loan hedging program were outstanding:

	December 31, 2017			December 31, 2016
	(Dollars in thousands)
Interest rate swaps on loans with loan customers
Notional amount	$	274,156		$	223,098
Weighted average remaining term (years)	7.3			7.4
Received fixed rate (weighted average)	4.34		%	4.29		%
Pay variable rate (weighted average)	3.74		%	3.06		%
Estimated fair value	$	(2,838	)	$	(1,565	)
Back to back interest rate swaps with correspondent banks
Notional amount	$	274,156		$	223,098
Weighted average remaining term (years)	7.3			7.4
Received variable rate (weighted average)	3.74		%	3.06		%
Pay fixed rate (weighted average)	4.34		%	4.29		%
Estimated fair value	$	2,838		$	1,565

The Company enters into various stand-alone mortgage-banking derivatives in order to hedge the risk associated with the fluctuation of interest rates. Changes in fair value are recorded as mortgage banking revenue. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. At December 31, 2017 and December 31, 2016, the Company had approximately $4.8 million and $23.7 million in interest rate lock commitments, and $4.8 million and $13.0 million in total forward sales commitments for the future delivery of residential mortgage loans, respectively.

The following table reflects the notional amount and fair value of mortgage banking derivatives for the dates indicated:

	December 31, 2017				December 31, 2016
	Notional Amount		Fair Value		Notional Amount		Fair Value
	(Dollars in thousands)
Assets:
Interest rate lock commitments	$	4,795	$	25	$	11,168	$	130
Forward sale contracts related to mortgage banking:	$	2,452	$	8	$	3,223	$	17
Liabilities:
Interest rate lock commitments	$	—	$	—	$	1,810	$	3
Forward sale contracts related to mortgage banking:	$	2,343	$	5	$	9,755	$	38

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Stockholders' Equity

12 Months Ended

Dec. 31, 2017

Stockholders’ Equity and Regulatory Matters [Abstract]

Stockholders' Equity and Regulatory Matters

STOCKHOLDERS’ EQUITY

On July 29, 2016 the Company acquired Wilshire in an all-stock transaction. Pursuant to the merger agreement, Wilshire shareholders received 0.7034 shares of the Company’s common stock for each share of Wilshire stock owned. Based on this exchange ratio, 55.5 million shares of the Company’s common stock were issued to Wilshire shareholders at $15.37 per share, the closing price of the Company’s stock on July 29, 2016. As a result, $852.9 million in common stock was issued as consideration in the transaction and $3.4 million in additional paid-in capital was recorded to account for the fair value of stock options and restricted stock assumed. Total stockholders’ equity at December 31, 2017 was $1.93 billion, compared to $1.86 billion at December 31, 2016.

Warrants

The Company assumed certain warrants (related to the TARP Capital Purchase Plan) to purchase shares of the Company’s common stock. On May 20, 2015, the U.S. Treasury Department completed an auction to sell certain of its warrant positions. The Company submitted the winning bid to repurchase an outstanding warrant to purchase 350,767 shares of the Company’s common stock and repurchased this warrant for $1.2 million. As of December 31, 2017, the U.S. Treasury Department held one remaining warrant for the purchase of 20,379 shares of the Company’s common stock.

Dividends

The Company’s Board of Directors approved and the Company paid quarterly dividends of $0.12 per common share for the first and second quarter of 2017 and paid dividends of $0.13 per common shares for the third and fourth quarter of 2017. The Company paid aggregate dividends of $67.7 million to common shareholders in 2017. The Company’s Board of Directors paid quarterly dividends of $0.12 per common share for the fourth quarter of 2016 and $0.11 per common share for the first three quarters of 2016. The Company paid aggregate dividends of $42.5 million to common shareholders during 2016.

Accumulated Other Comprehensive Loss

The following table presents the changes to accumulated other comprehensive loss at December 31, 2017, 2016, and 2015:

	December 31, 2017			December 31, 2016			December 31, 2015
	(Dollars in thousands)
Balance at beginning of period	$	(14,657	)	$	(1,832	)	$	1,705
Unrealized losses on securities available for sale    and interest only strips	(5,796		)	(21,273		)	(5,717		)
Reclassification adjustments for gains realized in income	(301		)	(950		)	(424		)
Less tax benefit	(2,570		)	(9,398		)	(2,604		)
Total other comprehensive loss	(3,527		)	(12,825		)	(3,537		)
Reclassification from AOCI to retained earnings due to tax reform	$	(3,597	)	$	—		$	—
Balance at end of period	$	(21,781	)	$	(14,657	)	$	(1,832	)

The reclassification adjustments were recognized in net gains on sales or called securities available for sale in the consolidated statements of income. As permitted by ASU 2018-02, the Company made the election to reclassify $3.6 million in disproportionate tax effects in accumulated other comprehensive income that resulted from the reduction in corporate tax rates as a result of the Tax Act to retained earnings for the year ended December 31, 2017. The Tax Act, which was enacted on December 22, 2017 and is effective staring January 1, 2018, permanently reduces the corporate tax rate from 35% to 21%. The disproportionate tax effect was a result of the re-evaluation of the Company’s deferred tax assets related to unrealized losses on investment securities available for sale and interest only strip at the lower tax rate.

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Regulatory Matters (Notes)

12 Months Ended

Dec. 31, 2017

Banking and Thrift [Abstract]

Regulatory Matters

REGULATORY MATTERS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material and adverse effect on the Company’s and the Bank’s business, financial condition and results of operations, such as restrictions on growth or the payment of dividends or other capital distributions or management fees. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

In July, 2013, the federal bank regulatory agencies adopted final regulations, which revised their risk-based and leverage capital requirements for banking organizations to meet requirements of Dodd-Frank and to implement Basel III international agreements reached by the Basel Committee. The final rules began for the Company and the Bank on January 1, 2015 and are subject to a phase-in period through January 1, 2019. The final rules that had an impact on the Company and the Bank include:

• An increase in the minimum Tier 1 capital ratio from 4.00% to 6.00% of risk-weighted assets;

• A new category and a required 4.50% of risk-weighted assets ratio is established for “Common Equity Tier 1” as a subset of Tier 1 capital limited to common equity;

• A minimum non-risk-based leverage ratio is set at 4.00%, eliminating a 3.00% exception for higher rated banks;

• Changes in the permitted composition of Tier 1 capital to exclude trust preferred securities, mortgage servicing rights and certain deferred tax assets and include unrealized gains and losses on available-for-sale debt and equity securities;

• The risk-weights of certain assets for purposes of calculating the risk-based capital ratios are changed for high volatility commercial real estate acquisition, development and construction loans, certain past due non-residential mortgage loans and certain mortgage-backed and other securities exposures; and

• A new additional capital conservation buffer of 2.5% of risk weighted assets over each of the required capital ratios is being phased in from 2016 to 2019 and must be met to avoid limitations on the ability of the Bank to pay dividends, repurchase shares, or pay discretionary bonuses. The capital conservation buffer for the Company was initially 0.625% in 2016, and increases 0.625% annually until 2019. As ofDecember 31, 2017, the capital conservation buffer for the Company stood at 1.25%.

As of December 31, 2017, the ratios for the Company and the Bank are sufficient to meet the fully phased-in conservation buffer.

As of December 31, 2017 and 2016, the most recent regulatory notification categorized the Bank as “well-capitalized” under the regulatory framework for prompt corrective action. To generally be categorized as “well-capitalized”, the Bank must maintain minimum total risk-based, Tier I risk-based, common equity Tier 1, and Tier I leverage ratios as set forth in the following table. There are no conditions or events since the most recent notification from regulators that management believes has changed the institution’s category. As of December 31, 2017 and 2016, the Company and the Bank met the capital adequacy requirements to which they are subject.

The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below:

	Actual				Required For Capital Adequacy Purposes				Minimum Capital Adequacy With Capital Conservation Buffer				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
December 31, 2017
Common equity tier 1 capital (to risk-weighted assets):
Company	$	1,471,193	12.30	%	$	538,435	4.50	%	$	688	5.75	%	N/A		N/A
Bank	$	1,548,401	12.95	%	$	538,178	4.50	%	$	688	5.75	%	$	777,368	6.50	%
Total capital (to risk-weighted assets):
Company	$	1,653,521	13.82	%	$	957,217	8.00	%	$	1,106,782	9.25	%	N/A		N/A
Bank	$	1,633,778	13.66	%	$	956,761	8.00	%	$	1,106,255	9.25	%	$	1,195,951	10.00	%
Tier I capital (to risk-weighted assets):
Company	$	1,568,144	13.11	%	$	717,913	6.00	%	$	867,478	7.25	%	N/A		N/A
Bank	$	1,548,401	12.95	%	$	717,571	6.00	%	$	687,672	7.25	%	$	956,761	8.00	%
Tier I capital (to average assets):
Company	$	1,568,144	11.54	%	$	543,528	4.00	%	N/A		N/A		N/A		N/A
Bank	$	1,548,401	11.40	%	$	543,441	4.00	%	N/A		N/A		$	679,301	5.00	%
	Actual				Required For Capital Adequacy Purposes				Minimum Capital Adequacy With Capital Conservation Buffer				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
December 31, 2016
Common equity tier 1 capital (to risk-weighted assets):
Company	$	1,400,246	12.10	%	$	520,917	4.50	%	$	593,267	5.125	%	N/A		N/A
Bank	$	1,475,228	12.75	%	$	520,631	4.50	%	$	592,941	5.125	%	$	752,022	6.50	%
Total capital (to risk-weighted assets):
Company	$	1,578,690	13.64	%	$	926,076	8.00	%	$	998,425	8.625	%	N/A		N/A
Bank	$	1,557,765	13.46	%	$	925,566	8.00	%	$	997,876	8.625	%	$	1,156,957	10.00	%
Tier I capital (to risk-weighted assets):
Company	$	1,496,153	12.92	%	$	694,557	6.00	%	$	766,906	6.625	%	N/A		N/A
Bank	$	1,475,228	12.75	%	$	694,174	6.00	%	$	766,484	6.625	%	$	925,566	8.00	%
Tier I capital (to average assets):
Company	$	1,496,153	11.49	%	$	520,947	4.00	%	N/A		N/A		N/A		N/A
Bank	$	1,475,228	11.33	%	$	520,903	4.00	%	N/A		N/A		$	651,129	5.00	%

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Earnings Per Share ("EPS")

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE (“EPS”)

Basic EPS does not reflect the possibility of dilution that could result from the issuance of additional shares of common stock upon exercise or conversion of outstanding securities, and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted to common stock that would then share in our earnings. For the years ended December 31, 2017 and 2016, stock options and restricted shares awards of approximately 443 thousand and 519 thousand shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were considered antidilutive. Additionally, warrants to purchase 20,379 and 19,849 of common stock (related to the TARP Capital Purchase Plan) were antidilutive and excluded for the year endedDecember 31, 2017 and 2016, respectively.

The following table shows the computation of basic and diluted EPS for the years ended December 31, 2017, 2016, and 2015:

	Net income available to common stockholders (Numerator)		Weighted Average Shares (Denominator)	Per Share (Amount)
	(Dollars in thousands, except share and per share data)
2017
Basic EPS - common stock	$	139,445	135,348,938	$	1.03
Effect of Dilutive Securities:
Stock Options and Performance Units			336,031
Diluted EPS - common stock	$	139,445	135,684,969	$	1.03
2016
Basic EPS - common stock	$	113,747	103,289,059	$	1.10
Effect of Dilutive Securities:
Stock Options and Performance Units			241,259
Diluted EPS - common stock	$	113,747	103,530,318	$	1.10
2015
Basic EPS - common stock	$	92,258	79,549,651	$	1.16
Effect of Dilutive Securities:
Stock Options and Performance Units			31,905
Common stock warrants			30,244
Diluted EPS - common stock	$	92,258	79,611,800	$	1.16

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Servicing Assets

12 Months Ended

Dec. 31, 2017

Transfers and Servicing [Abstract]

Servicing Assets

SERVICING ASSETS

Servicing assets are recognized when SBA and residential mortgage loans are sold with servicing retained with the income statement effect recorded in gains on sales of loans. Servicing assets are initially recorded at fair value based on the present value of the contractually specified servicing fee, net of servicing costs, over the estimated life of the loan, using a discount rate. The Company’s servicing costs approximates the industry average servicing costs of 40 basis points. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Management periodically evaluates servicing assets for impairment based upon the fair value of the rights as compared to the carrying amount. Impairment is determined by stratifying rights into groupings based on loan type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount.

The changes in net servicing assets for the year endedDecember 31, 2017 and 2016 were as follows:

	Year Ended December 31,
	2017			2016
	(Dollars in thousands)
Balance at beginning of period	$	26,457		$	12,000
Additions through originations of servicing assets	5,492			4,472
Additions through acquisition of Wilshire (net of servicing liabilities)	—			15,873
Amortization	(7,239		)	(5,888		)
Balance at end of period	$	24,710		$	26,457

Total servicing assets at December 31, 2017 totaled $24.7 million, and was comprised of $22.2 million in SBA servicing assets and $2.5 million in mortgage related servicing assets. At December 31, 2016, servicing assets totaled $26.5 million, comprised of $24.7 million in SBA servicing assets and $1.8 million in mortgage related servicing assets.

The Company utilizes the discounted cash flow method to calculate the initial excess servicing assets. The inputs used in determining the fair value of the servicing assets at December 31, 2017 and December 31, 2016 are presented below.

	December 31, 2017	December 31, 2016
	Range	Range
SBA Servicing Assets:
Weighted-average discount rate	10.13% ~ 11.13%	5.55% ~ 9.85%
Constant prepayment rate	7.50% ~ 12.50%	7.20% ~ 12.10%
Mortgage Servicing Assets:
Weighted-average discount rate	9.50% ~ 9.66%	7.00% ~ 7.25%
Constant prepayment rate	7.71% ~ 9.13%	13.77% ~ 15.88%

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Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Statement of Parent Company

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

The following presents the unconsolidated condensed financial statements of only the parent company, Hope Bancorp, Inc., as of December 31, 2017 and 2016:

STATEMENTS OF FINANCIAL CONDITION

	December 31,
	2017		2016
	(Dollars in thousands)
ASSETS:
Cash and cash equivalents	$	13,327	$	13,859
Other assets	10,763		11,428
Investment in bank subsidiary	2,005,462		1,930,455
TOTAL ASSETS	$	2,029,552	$	1,955,742
LIABILITIES:
Other borrowings	$	100,853	$	99,808
Accounts payable and other liabilities	444		461
Total liabilities	101,297		100,269
STOCKHOLDERS’ EQUITY	1,928,255		1,855,473
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,029,552	$	1,955,742

STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	Years Ended December 31,
	2017			2016			2015
	(Dollars in thousands)
Interest income	$	—		$	—		$	—
Interest expense	5,089			2,927			1,561
Other operating expense	5,988			9,826			4,967
Equity in earnings of bank subsidiary	146,397			121,996			96,318
Income before income tax benefit	135,320			109,243			89,790
Income tax benefit	4,125			4,504			2,468
Net income	139,445			113,747			92,258
Other comprehensive loss, net of tax	(3,527		)	(12,825		)	(3,537		)
Comprehensive income	$	135,918		$	100,922		$	88,721

STATEMENTS OF CASH FLOWS

	Years Ended December 31,
	2017			2016			2015
	(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	139,445		$	113,747		$	92,258
Adjustments to reconcile net income to net cash from   operating activities:
Amortization	1,045			558			188
Stock-based compensation expense	523			—			—
Change in other assets	665			2,172			717
Change in accounts payable and other liabilities	(17		)	(119		)	(1,053		)
Equity in undistributed earnings of bank subsidiary	(76,397		)	(77,996		)	(62,318		)
Net cash from operating activities	65,264			38,362			29,792
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash and cash equivalents acquired through the merger	—			13,248			—
Net cash from investing activities	—			13,248			—
CASH FLOWS USED IN FINANCING ACTIVITIES:
Issuance of additional stock pursuant to various stock plans	1,865			—			—
Redemption of common stock warrant	—			—			(1,150		)
Payments of cash dividends	(67,661		)	(42,493		)	(33,407		)
Net cash used in financing activities	(65,796		)	(42,493		)	(34,557		)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(532		)	9,117			(4,765		)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	13,859			4,742			9,507
CASH AND CASH EQUIVALENTS, END OF YEAR	$	13,327		$	13,859		$	4,742

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Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (unaudited)

QUARTERLY FINANCIAL DATA (UNAUDITED)    

Summarized unaudited quarterly financial data follows for the three months ended:

	2017 Quarter Ended,
	March 31		June 30		September 30		December 31
	(Dollars in thousands, except per share data)
Interest income	$	132,743	$	138,533	$	147,643	$	153,185
Interest expense	17,838		21,713		24,380		26,793
Net interest income before provision for loan losses	114,905		116,820		123,263		126,392
Provision for loan losses	5,600		2,760		5,400		3,600
Net interest income after provision for loan losses	109,305		114,060		117,863		122,792
Noninterest income	17,603		16,115		16,246		16,451
Noninterest expense	67,699		64,037		61,837		73,028
Income before income tax provision	59,209		66,138		72,272		66,215
Income tax provision	22,999		25,451		27,708		48,231
Net income	$	36,210	$	40,687	$	44,564	$	17,984
Basic earnings per common share	$	0.27	$	0.30	$	0.33	$	0.13
Diluted earnings per common share	$	0.27	$	0.30	$	0.33	$	0.13

	2016 Quarter Ended,
	March 31		June 30		September 30		December 31
	(Dollars in thousands, except per share data)
Interest income	$	83,461	$	83,534	$	119,552	$	135,387
Interest expense	11,853		12,470		16,078		18,178
Net interest income before provision for loan losses	71,608		71,064		103,474		117,209
Provision for loan losses	500		1,200		6,500		800
Net interest income after provision for loan losses	71,108		69,864		96,974		116,409
Noninterest income	8,774		10,707		14,146		18,192
Noninterest expense	40,050		40,348		67,846		66,731
Income before income tax provision	39,832		40,223		43,274		67,870
Income tax provision	16,210		16,833		17,169		27,240
Net income	$	23,622	$	23,390	$	26,105	$	40,630
Basic earnings per common share	$	0.30	$	0.29	$	0.22	$	0.30
Diluted earnings per common share	$	0.30	$	0.29	$	0.22	$	0.30

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation—The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and conform to practices within the banking industry. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, principally the Bank. Intercompany transactions and balances are eliminated in consolidation.

Cash Flows

Cash Flows—Cash and cash equivalents include cash and due from banks, interest-earning deposits, federal funds sold and term federal funds sold, which have original maturities less than 90 days. The Company may be required to maintain reserve and clearing balances with the Federal Reserve Bank under the Federal Reserve Act. The reserve and clearing requirement balance was $0 at December 31, 2017 and 2016. Net cash flows are reported for customer loan and deposit transactions, federal funds purchased, deferred income taxes, and other assets and liabilities.

Interest-Bearing Deposits in Other Financial Institutions and Other Investments

Interest-Bearing Deposits in Other Financial Institutions and Other Investments—Interest-bearing deposits in other financial institutions and other investments are comprised of the Company’s investments in certificates of deposits that have original maturities greater than 90 days. Other investments are also comprised of the Company’s investment in funds to partially satisfy the Company’s requirements under the Community Reinvestment Act. The funds do not have a readily determinable fair value as of the balance sheet date.

Securities

Securities—Securities are classified and accounted for as follows:

(i) Securities that the Company has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and reported at amortized cost. At December 31, 2017 and 2016, the Company did not own securities in this category;

(ii) Securities are classified as “available-for-sale” when they might be sold before maturity and are reported at fair value. Unrealized holding gains and losses are reported as a separate component of stockholders’ equity in accumulated other comprehensive income (loss), net of taxes.

Accreted discounts and amortized premiums on securities are included in interest income using the interest method, and realized gains or losses related to sales of securities recorded on trade date and are calculated using the specific identification method, without anticipating prepayments, except for mortgage-backed securities where prepayments are expected.

Management evaluates securities for other than temporary impairment (“OTTI”) at least on a quarterly basis and more frequently when economic conditions warrant such evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings.

Derivative Financial Instruments and Hedging Transactions

Derivative Financial Instruments and Hedging Transactions—As part of the Company’s asset and liability management strategy, the Company may enter into derivative financial instruments, such as interest rate swaps, and caps and floors, with the overall goal of minimizing the impact of interest rate fluctuations on net interest margin. The Company’s interest rate swaps and caps involve the exchange of fixed rate and variable rate interest payment obligations without the exchange of the underlying notional amounts and are therefore accounted for as stand-alone derivatives. Changes in the fair value of the stand-alone derivatives are reported in earnings as noninterest income. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors, are both considered derivatives. The Company accounts for loan commitments related to the origination of mortgage loans that will be held-for-sale as derivatives at fair value on the balance sheet, with changes in fair value recorded in earnings. As part of the Company’s overall risk management, the Company’s Asset Liability Committee, which meets monthly, monitors and measures interest rate risk and the sensitivity of assets and liabilities to interest rate changes, including the impact of derivative transactions.

Loans

Loans—Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of any purchase discounts, unearned interest, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Nonrefundable loan origination fees and certain direct origination costs are deferred and recognized in interest income using the level-yield method over the life of the loan. Interest on loans is credited to income as earned and is accrued only if deemed collectible.

Generally, loans are placed on nonaccrual status and the accrual of interest is discontinued if principal or interest payments become 90 days past due and/or management deems the collectibility of the principal and/or interest to be in question. Loans to a customer whose financial condition has deteriorated are considered for nonaccrual status whether or not the loan is 90 days or more past due. Generally, payments received on nonaccrual loans are recorded as principal reductions. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Other loan fees and charges, representing service costs for the prepayment of loans, for delinquent payments or for miscellaneous loan services, are recorded as income when collected.

Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes all loans with the exception of homogeneous loans, or loans that are evaluated together in pools of similar loans (i.e., home mortgage loans, home equity lines of credit, overdraft loans, express business loans, and automobile loans). This analysis is performed at least on a quarterly basis. The Company uses the following definitions for risk ratings:

• Pass: Loans that meet a preponderance or more of the Company’s underwriting criteria and evidence an acceptable level of risk.

• Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

• Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

• Doubtful/Loss: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Allowance for Loan Losses—The allowance for loan losses is a valuation allowance for probable incurred credit losses that are inherent in the loan portfolio. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off.

The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors.

The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment. The Company further segregates these segments between loans accounted for under the amortized cost method (referred to as “Legacy Loans”) and acquired loans (referred to as “Acquired Loans”), as Acquired Loans were originally recorded at fair value with no carryover of the related allowance for loan losses.

The historical loss experience for Legacy Loans is based on the actual loss history experienced by the Company. The loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations.

The following major portfolio segments have been identified: real estate loans (residential, commercial, and construction), commercial business loans, trade finance loans, and consumer/other loans. Due to the overall high level of real estate loans within the loan portfolio as a whole, as compared to other portfolio segments, for risk assessment and allowance purposes this segment was segregated into more granular pools by collateral property type.

Our real estate loan portfolio is subject to certain risks, including: a decline in the economies of our primary markets, interest rate increases, a reduction in real estate values in our primary markets, increased competition in pricing and loan structure, and environmental risks, including natural disasters. Our commercial business and trade finance loan portfolio are subject to certain risks, including: a decline in the economy in our primary markets, interest rate increases, and deterioration of a borrower’s or guarantor’s financial capabilities. Our consumer loan portfolio is subject to the same risk associated with our commercial business loan portfolio but also includes risk related to consumer bankruptcy laws which allow consumers to discharge certain debts.

The Company uses a loan migration analysis which is a formula methodology based on the Bank’s actual historical net charge off experience for each loan class (type) pool and risk grade. The migration analysis is centered on the Bank’s internal credit risk rating system. The Company’s internal loan review and external contracted credit review examinations are used to determine and validate loan risk grades. This credit review system takes into consideration factors such as: borrower’s background and experience; historical and current financial condition; credit history and payment performance; economic conditions and their impact on various industries; type, fair value and volatility of the fair value of collateral; lien position; and the financial strength of any guarantors.

A general loan loss allowance is provided on loans not specifically identified as impaired (“non-impaired loans”). The Bank’s general loan loss allowance has two components: quantitative and qualitative risk factors. The quantitative risk factors are based on a historical loss migration methodology. The loans are classified by class and risk grade and the historical loss migration is tracked for the various classes. Loss experience is quantified for a specified period and then weighted to place more significance to the most recent loss history. That loss experience is then applied to the stratified portfolio at each quarter end.

Additionally, in order to systematically quantify the credit risk impact of other trends and changes within the loan portfolio, the Bank utilizes qualitative adjustments to the Migration Analysis within established parameters. The parameters for making adjustments are established under a Credit Risk Matrix that provides seven possible scenarios for each of the factors below. The matrix allows for up to three positive (major, moderate, and minor), three negative (major, moderate, and minor), and one neutral credit risk scenarios within each factor for each loan type pool. Generally, the factors are considered to have no significant impact (neutral) to our historical migration ratios. However, if information exists to warrant adjustment to the Migration Analysis, changes are made in accordance with the established parameters supported by narrative and/or statistical analysis. The Credit Risk Matrix and the nine possible scenarios enable the Bank to qualitatively adjust the Loss Migration Ratio by as much as 50 basis points in either direction (positive or negative) for each loan type pool. This matrix considers the following nine factors, which are patterned after the guidelines provided under the FFIEC Interagency Policy Statement on the Allowance for Loan and Lease Losses:

• Changes in lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices.

• Changes in national and local economic and business conditions and developments, including the condition of various market segments.

• Changes in the nature and volume of the loan portfolio.

• Changes in the experience, ability and depth of lending management and staff.

• Changes in the trends of the volume and severity of past due loans, Classified Loans, nonaccrual loans, troubled debt restructurings and other loan modifications.

• Changes in the quality of our loan review system and the degree of oversight by the Directors.

• Changes in the value of underlying collateral for collateral-dependent loans.

• The existence and effect of any concentrations of credit and changes in the level of such concentrations.

• The effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated losses in the Company’s loan portfolio.

The Company also establishes specific loss allowances for loans where we have identified potential credit risk conditions or circumstances related to a specific individual credit. The specific allowance amounts are determined by a method prescribed by ASC 310-10-35-22, Measurement of Impairment. The loans identified as impaired will be accounted for in accordance with one of the three acceptable valuation methods: 1) the present value of future cash flows discounted at the loan’s effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral, if the loan is collateral dependent. For the collateral dependent impaired loans, the Company obtains a new appraisal to determine the amount of impairment as of the date that the loan became impaired. The appraisals are based on an “as is” valuation. To ensure that appraised values remain current, the Company either obtains updated appraisals every twelve months from a qualified independent appraiser or an internal re-valuation of the collateral is performed by qualified personnel. If the fair value of the collateral, less cost to sell, is less than the recorded amount of the loan, the Company then recognizes impairment by creating or adjusting an existing valuation allowance with a corresponding charge to the provision for loan losses. If an impaired loan is expected to be collected through liquidation of the underlying collateral, the loan is deemed to be collateral dependent and the amount of impairment is charged off against the allowance for loan losses.

The Bank considers a loan to be impaired when it is probable that not all amounts due (principal and interest) will be collectible in accordance with the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The significance of payment delays and payment shortfalls is determined on a case-by-case basis by taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed.

For commercial business loans, real estate loans and certain consumer loans, the Company bases the measurement of loan impairment on the present value of the expected future cash flows, discounted at the loan’s effective interest rate or on the fair value of the loan’s collateral, less estimated costs to sell, if the loan is collateral dependent. Management evaluates most consumer loans for impairment on a collective basis because these loans generally have smaller balances and are homogeneous in the underwriting of terms and conditions and in the type of collateral.

Impairment losses are included in the allowance for loan losses through a charge to the provision for loan losses. Upon disposition of an impaired loan, any unpaid balance is charged off to the allowance for loan losses.

The allowance for loan losses for acquired credit impaired loans is based upon expected cash flows for these loans. To the extent that a deterioration in borrower credit quality results in a decrease in expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on management’s estimate of future credit losses over the remaining life of the loans.

Acquired Loans—Loans that the Company acquires are recorded at fair value with no carryover of the related allowance for loan losses. On the date of acquisition, the Company considers acquired classified loans credit impaired loans (“Purchased Credit Impaired Loans” or “PCI loans”) under the provisions of Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. On the date of acquisition, loans without credit impairment (“Acquired Performing Loans” or “Non-PCI loans”) are not accounted for under ASC 310-30. Acquired loans are placed in pools with similar risk characteristics and recorded at fair value as of the acquisition date.

For PCI loans, the cash flows expected to be received over the life of the pools were estimated by management with the assistance of a third party valuation specialist. These cash flows were utilized in calculating the carrying values of the pools and underlying loans, book yields, effective interest income and impairment, if any, based on actual and projected events. Default rates, loss severity and prepayment speed assumptions are periodically reassessed and updated within the accounting model to update the expectation of future cash flows. The excess of the cash expected to be collected over the pools’ carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the loan or pool using the effective interest yield method. The accretable yield may change due to changes in the timing and amounts of expected cash flows. Changes in the accretable yield is disclosed quarterly.

For PCI loans, the excess of the contractual balances due over the cash flows expected to be collected is considered to be nonaccretable difference. The nonaccretable difference represents our estimate of the credit losses expected to occur and was considered in determining the fair value of the loans as of the date of acquisition. Subsequent to the date of acquisition, any increases in expected cash flows over those expected at purchase date in excess of fair value are adjusted through the accretable difference on a prospective basis. Any subsequent decreases in expected cash flows over those expected at the acquisition date are recognized by recording a provision for loan losses that will maintain the original expected yield.

PCI loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if management can reasonably estimate the timing and amount of the expected cash flows on such loans and if management expects to fully collect the new carrying value of the loans. As such, management may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. Management has determined that future cash flows are reasonably estimable on any such acquired loans that are past due 90 days or more and accruing interest. Management expects to fully collect the carrying value of the loans.

FHLB Stock

FHLB Stock—The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Premises and Equipment

Premises and Equipment—Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of premises and equipment are computed on the straight-line method over the following estimated useful lives:

OREO

OREO—OREO, which represents real estate acquired through foreclosure in satisfaction of commercial and real estate loans, is stated at fair value less estimated selling costs of the real estate. Loan balances in excess of the fair value of the real estate acquired at the date of acquisition are charged to the allowance for loan losses. Any subsequent operating expenses or income, reduction in estimated fair values, and gains or losses on disposition of such properties are charged or credited to current operations. For the year ended December 31, 2017, the Company foreclosed on properties with an aggregate carrying value of $7.2 million. The Company recorded $3.7 million in net valuation adjustments subsequent to the foreclosures, and the Company sold OREO properties for total proceeds of $14.8 million.

Goodwill and Intangible Assets

Goodwill and Intangible Assets—Goodwill is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually.

In accordance with ASC 350 “Intangibles - Goodwill and Other”, the Company makes a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If management concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the two-step impairment test is bypassed. Management assessed the qualitative factors related to goodwill as of December 31, 2017. Goodwill is also tested for impairment on an interim basis if circumstances change or an event occurs between annual tests that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions and selecting an appropriate control premium. The selection and weighting of the various fair value techniques may result in a higher or lower fair value. Judgment is applied in determining the weighting that is most representative of fair value.

Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangibles are amortized over a seven to ten year period.

Stock-Based Compensation

Stock-Based Compensation—Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Income Taxes

Income Taxes—Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred income tax assets and liabilities represent the tax effects, based on current tax law, of future deductible or taxable amounts attributable to events that have been recognized in the financial statements. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, the projected future taxable income and tax planning strategies in making this assessment. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and / or penalties related to income tax matters in income tax expense.

Section 382 of the Internal Revenue Code imposes a limitation (“382 Limitation”) on a corporation’s ability to use any net unrealized built in losses and other tax attributes, such as net operating loss and tax credit carryforwards, when it undergoes a 50% ownership change over a designated testing period not to exceed three years (“382 Ownership Change”). As a result of the acquisition on July 29, 2016, Wilshire Bancorp underwent a 382 Ownership Change resulting in a 382 Limitation to its net operating loss and tax credit carryforwards. Wilshire Bancorp did not have a net unrealized built in loss as of the 382 Ownership Change date. Given the applicable 382 Limitation, the Company is expected to fully utilize Wilshire Bancorp’s net operating loss and tax credit carryforwards before expiration. However, future transactions, such as issuances of common stock or sales of shares of the Company’s stock by certain holders of our shares, including persons who have held, currently hold or may accumulate in the future 5% or more of our outstanding common stock for their own account, could trigger a future Section 382 Ownership Change of the Company which could limit the Company’s use of these tax attributes.

Earnings per Common Share

Earnings per Common Share—Basic Earnings per Common Share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted Earnings per Common Share reflects the potential dilution of common shares that could share in the earnings of the Company. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements.

Equity

Equity—The Company accrues for common stock dividends as declared. Common stock dividends of $67.7 million and $42.5 million, were paid in 2017 and 2016, respectively. There were no common stock dividends declared but unpaid at December 31, 2017 and 2016.

BOLI

BOLI—The Company has purchased life insurance policies on certain key executives and directors. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Investments in Affordable Housing Partnerships

Investments in Affordable Housing Partnerships—The Company owns limited partnerships interest in projects of affordable housing for lower income tenants.  Under the equity method of accounting, the annual amortization is based on the estimated tax deduction amounts the bank would receive in the year. The carrying value of such investments and commitments to fund investment in affordable housing is recorded as “Investment in affordable housing partnerships” in the Consolidated Statement of Financial Condition. Commitment to fund investments in affordable housing is also included in this line items but is also grossed up and recorded as a liability. The Company recorded an impairment on investments in affordable housing partnerships totaling $4.8 million for the year ended December 31, 2017 to account for the variance between the carrying value of individual investments and the future expected tax benefits. Of the $4.8 million impairment recorded in 2017, $3.2 million was recorded in noninterest expense to reflect the impairment for the year ended December 31, 2017 and $1.6 million was recorded in income tax provision expenses as the re-evaluation was a direct result of the Tax Act which reduced corporate tax rates from 35% to 21%.

Comprehensive Income

Comprehensive Income—Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes the change in unrealized gains and losses on securities available for sale and interest-only strips which are also recognized as separate components of stockholders’ equity, net of tax.

Operating Segments

Operating Segments—The Company is managed as a single business segment. The financial performance of the Company is reviewed by the chief operating decision maker on an aggregate basis and financial and strategic decisions are made based on the Company as a whole. We consider “Banking Operations” to be our single combined operating segment, which raises funds from deposits and borrowings for loans and investments, and provides lending products, including construction, real estate, commercial, and consumer loans to its customers.

Loss Contingencies and Loan Commitments and Related Financial Instruments

Loss Contingencies—Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management believes there are no such matters that would have a material effect on the consolidated financial statements as of December 31, 2017 or 2016. Accrued loss contingencies for all legal claims totaled approximately $414 thousand at December 31, 2017 and $557 thousand at December 31, 2016.

Loan Commitments and Related Financial Instruments—Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. See Note 13 Commitments and Contingencies of the Notes to Consolidated Financial Statements for further discussion

Allowance For Unfunded Commitments

Allowance for Unfunded Commitments—The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to these unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. The allowance for unfunded commitments is included in other liabilities on the consolidated statement of financial condition, with changes to the balance charged against noninterest expense.

Fair Values of Financial Instruments

Fair Values of Financial Instruments—Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets—The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated future cash flows (undiscounted) over the remaining useful life of the asset are less than the carrying value, an impairment loss would be recorded to reduce the related asset to its estimated fair value.

Transfers of Financial Assets

Transfer of Financial Assets—Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Use of Estimates in the Preparation of Consolidated Financial Statements

Use of Estimates in the Preparation of Consolidated Financial Statements—The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

Reclassifications

Reclassifications -

Recent Accounting Pronouncements and Newly Issued But Not Yet Effective Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” and in May 2016, FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” Both updates which supersedes the revenue recognition requirements in Topic 606, Revenue Recognition. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 as amended by ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, is effective for interim and annual periods beginning after December 15, 2017 and is applied on either a modified retrospective or full retrospective basis. The Company has elected to adopt the modified retrospective approach and will apply the guidance to the most current period presented in the financial statements for the first quarter of 2018.

The Company’s revenue primarily consists of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income, as well as other revenues from financial instruments such as loans, leases, securities and derivatives. The Company’s material revenue streams that will be in scope of Topic 606 are service fees on deposit accounts (including interchange fees), asset management fees, certain OREO gains (losses), and international fees. All other revenue streams are either immaterial, or are in the scope of other GAAP requirements which take precedence and therefore are not in the scope of Topic 606.

The largest in scope revenue source is the Company’s fees on deposit accounts. Based on the Company’s initial analysis, Topic 606 will not materially change the recognition of revenue on service fees on deposits accounts as the contracts are day to day and recognized as the service is provided. The Company is not the principal in terms of wealth management fees as it acts as an agent for another company who provides wealth management services on the Company’s behalf. As such, wealth management fees recognition will not change with the adoption of Topic 606. Gain or losses on the sale of OREO are generally accounted for under ASC 610. However, ASU 2014-09 also added new Subtopic 610-20 which addresses the recognition of gains and losses on the transfer of nonfinancial and in-substance nonfinancial assets. Gain and loss recognition is not expected to change except for OREO and other nonfinancial sales that are financed by the Company. In the case of financed sales, the Company will need to evaluate each contract to determine whether each contract criteria is met, including whether it is probable that it will collect substantially all of the consideration to which it will be entitled. The Company will also need to evaluate whether the financing terms offered to the buyer of the nonfinancial assets are market terms when determining the transaction price. As of the adoption date, there were no open sale contracts with a financing component. International fees are similar to service fees on deposits as the contracts are day to day and income is recognized as the service is provided and therefore Topic 606 is not expected to change the recognition of this line of revenue.

The adoption of ASU 2014-09 will not have a material impact on the Company’s consolidated financial statements. The way certain in scope revenue stream are assessed will change as the Company will need to apply the principles in the new standard using the following five steps; 1. Identify the contract(s) with a customer, 2. Identify the performance obligations in the contract, 3. Determine the transaction price, 4. Allocate the transaction price to the performance obligations in the contract, 5. Recognize revenue when (or as) the entity satisfies a performance obligation. However, actual recorded revenue is not expected to change materially with the adoption of the new revenue recognition standard. ASU 2014-09 will require additional disclosures including disclosures of revenue recognized from contracts with customers and impairment recorded on recognized on contracts with customer, revenue disaggregated by types of categories that are most relevant to the Company, the opening and closing balances of receivables, contract assets, and contract liabilities from contracts with customers, information about its performance obligations in contracts with customers, and judgments, and changes in the judgments, made in applying the new guidance.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The new guidance becomes effective for fiscal years beginning after December 15, 2017. The Company does not hold any equity investments in the available-for-sale portfolio that would require reclassification and re-measurement at the adoption date. The adoption of ASU 2016-01 is not expected to have a material impact to the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently in the process of evaluating the impact of the pending adoption of the new standard on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. ASU 2016-13 becomes effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the pending adoption of the new standard on its consolidated financial statements and is collaborating with a third party advisory team to develop a multi-year implementation plan and methodology in order for the Company to be compliant with ASU 2016-13 by the effective date. The Company has established a CECL committee to oversee the development and implementation of ASU 2016-13. Based on the Company’s initial assessment of the ASU 2016-13, the Company’s expects the new guidance will result in additional required provision and allowance for loan losses which could have a material impact on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance on classification and presentation of certain cash receipts and cash payments on an institution’s statement of cash flows. The amendment aims to reduce the diversity in practice with respects to certain types of cash flows. ASU 2016-15 becomes effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. The adoption of ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, “Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment.” ASU 2017-04 will amend and simplify current goodwill impairment testing to eliminate Step 2 from the current provisions. Under the new guidance, an entity should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity still has the option to perform the quantitative assessment for a reporting unit to determine if a quantitative impairment test is necessary. ASU 2017-04 should be adopted for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently in the process of evaluating the impact of the pending adoption of the new standard on its consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities”. ASU 2017-08 was issued to amend the amortization period for certain callable debt securities held at a premium. ASU 2017-08 shortens the amortization period of premiums on certain purchased callable debt securities to the earliest call date. ASU 2017-08 affect all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date (that is, at a premium). ASU 2017-08 does not impact securities purchased at a discount, which continue to be amortized to maturity. ASU 2017-08 is effective for annual period beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted in an interim period. If an entity chooses to adopt early, any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. The adoption of ASU 2017-08 is not expected to have a material impact on the Company’s consolidated financial statements.

In November 2017, the FASB issued ASU 2017-14, Income Statement-Reporting Comprehensive Income (Topic 220), “Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403”. ASU 2017-14 was issued to supersede, amend, and add SEC paragraphs to the Codification to reflect the August 2017 issuance of SEC Staff Accounting Bulletin (SAB) 116 and SEC Release No. 33-10403. The SEC staff issued SAB 116 to align its revenue guidance with ASC 606, Revenue from Contracts with Customers. The SEC release says vaccine manufacturers should recognize revenue and provide the disclosures required by ASC 606 when the enumerated vaccines are placed into federal government stockpile programs. The amendments in the ASU have the same effective date and transition requirements as those for ASC 606; however, a registrant should continue referring to the applicable existing SEC guidance until it adopts ASC 606. ASU 2017-14 has the same effective date and transition requirements as ASU 2014-09 and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. For more information, see the Company’s disclosure of ASU 2014-09 above.

Fair Value Measurements

Securities Available for Sale

The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

The fair values of the Company’s Level 3 securities available for sale were measured using an income approach valuation technique. The primary inputs and assumptions used in the fair value measurement were derived from the securities’ underlying collateral which included discount rates, prepayment speeds, payment delays, and an assessment of the risk of default of the underlying collateral, among other factors. Significant increases or decreases in any of the inputs or assumptions would result in a significant increase or decrease in the fair value measurement.

Interest Rate Swaps

The Company offers interest rate swaps to certain loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans. The Company originates a variable rate loan and enters into a variable-to-fixed interest rate swap with the customer. The Company also enters into an offsetting swap with a correspondent bank. These back-to-back agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. The fair value of these derivatives is based on a discounted cash flow approach. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of interest rate swaps is classified as Level 2.

Impaired Loans

The fair values of impaired loans are generally measured for impairment using the practical expedients permitted by FASB ASC 310-10-35 including impaired loans measured at an observable market price (if available), or at the fair value of the loan’s collateral (if the loan is collateral dependent). Fair value of the loan’s collateral, when the loan is dependent on collateral, is determined by appraisals or independent valuation, less costs to sell of 8.5%. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and income approach. Adjustment may be made in the appraisal procses by the independent appraiser to adjust for differences between the comparable sales and income data available for similar loans and the underlying collateral. For commercial and industrial and asset backed loans, independent valuations may include a 20-60% discount for accounts receivable and a 50-70% discount for inventory. These result in a Level 3 classification.

Derivatives

The fair value of our derivative financial instruments is based on derivative valuation models using market data inputs as of the valuation date that can generally be verified and do not typically involve significant management judgments. (Level 2 inputs).

OREO

OREO is fair valued at the time the loan is foreclosed upon and the asset is transferred to OREO. The value is based primarily on third party appraisals, less costs to sell of 8.5% and result in a Level 3 classification of the inputs for determining fair value. OREO is reviewed and evaluated on at least an annual basis for additional impairment and adjusted to lower of cost or market accordingly, based on the same factors identified above.

Loans Held for Sale

Loans held for sale are carried at the lower of cost or fair value, as determined by outstanding commitments from investors, or based on recent comparable sales (Level 2 inputs), if available, and if not available, are based on discounted cash flows using current market rates applied to the estimated life and credit risk (Level 3 inputs) or may be assessed based upon the fair value of the collateral which is obtained from recent real estate appraisals (Level 3 inputs). These appraisals may utilize a single valuation approach or a combination of approaches including the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in Level 3 classification of the inputs for determining fair value.

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Mergers and Acquisitions (Tables)

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Consideration Paid, Assets Acquired and Liabilities

The consideration paid, the assets acquired, and the liabilities assumed are summarized in the following table:

	July 29, 2016
	(Dollars in thousands)
Consideration Paid:
Hope common stock issued in exchange for Wilshire common stock	$	852,939
Cash paid for fractional shares	3
Hope stock options issued in exchange Wilshire stock options	3,370
Total consideration paid	$	856,312
Assets Acquired:
Cash and cash equivalents	$	100,127
Investment securities	478,938
Loans receivable	3,800,807
FRB and FHLB stock	16,539
OREO	13,173
Premises and equipment	16,812
BOLI	25,240
Servicing assets	16,203
Low income housing tax credit investments	47,111
Core deposit intangibles	18,138
Deferred tax assets, net	17,698
Other assets	76,818
Liabilities Assumed:
Deposits	(3,812,367		)
Borrowings	(206,282		)
Subordinated debentures	(56,942		)
Other liabilities	(54,751		)
Total identifiable net assets	$	497,262
Excess of consideration paid over fair value of net assets acquired (goodwill)	$	359,050

Fair value of acquired loans

The following table presents loans acquired from Wilshire with deteriorated credit quality as of the date of acquisition included as loans receivable in the table above:

	Fair Value At July 29, 2016
	(Dollars in thousands)
Contractually required principal and interest at acquisition	$	292,380
Contractual cash flows not expected to be collected (nonaccretable discount)	(8,002		)
Expected cash flows at acquisition	284,378
Interest component of expected cash flows (accretable discount)	(41,271		)
Fair value of acquired impaired loans	$	243,107

Pro forma information

The pro forma information does not necessarily reflect the results of operations that would have occurred had the Company merged with Wilshire at the beginning of 2015. The pro forma combined condensed consolidated financial statements do not take into account the impact, if any, of an ownership change under Section 382 of the Code that would have occurred as of January 1, 2015. The merger is expected to result in annual cost savings to be achieved following the consummation of the merger. These expected savings have not been included in the pro forma combined amounts. These pro forma results require significant estimates and judgments particularly as it relates to the valuation and accretion of income associated with acquired loans.

	Actual from Acquisition Date Through December 31,		Pro forma Year Ended December 31,
	2016		2016		2015
	(Dollars in thousands)
Net interest income	$	197,953	$	456,556	$	449,501
Provision for loan losses	6,490		4,000		8,700
Non-interest income	29,546		75,266		89,345
Non-interest expense	120,954		235,013		255,401
Income tax provision	39,828		$	118,613	$	111,581
Net income	$	60,227	$	174,196	$	163,164
Pro forma earnings per share:
Basic			$	1.29	$	1.21
Diluted			$	1.29	$	1.21

Acquisition Related Expenses

The following table presents merger and integration expenses associated with the merger with Wilshire, the terminated merger with U & I, and other previous mergers and acquisitions which were reflected in the Consolidated Statements of Income in merger and integration expense. These expenses are comprised primarily of severance payments, professional services, and other noninterest expense related to prior mergers and acquisitions.

	Year ended December 31,
	2017		2016		2015
	(Dollars in thousands)
Wilshire	$	1,224	$	16,818	$	1,414
U & I	467		—		—
Other	90		96		126
Total merger and integration expenses	$	1,781	$	16,914	$	1,540

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Securities Available for Sale (Tables)

12 Months Ended

Dec. 31, 2017

Available-for-sale Securities [Abstract]

Summary of Securities Available for Sale

The following is a summary of securities available-for-sale at December 31, 2017 and 2016:

	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in thousands)
Debt securities:
U.S. Government agency and U.S.   Government sponsored enterprises:
Collateralized mortgage obligations	$	856,193	$	58	$	(17,542	)	$	838,709
Mortgage-backed securities:
Residential	477,676		521		(6,983		)	471,214
Commercial	308,046		—		(6,681		)	301,365
Corporate securities	4,997		—		(522		)	4,475
Municipal securities	82,542		870		(875		)	82,537
Total debt securities	1,729,454		1,449		(32,603		)	1,698,300
Mutual funds	22,425		17		(485		)	21,957
Total	$	1,751,879	$	1,466	$	(33,088	)	$	1,720,257
	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in thousands)
Debt securities:
U.S. Government agency and U.S.   Government sponsored enterprises:
Agency securities	$	12,005	$	3	$	—		$	12,008
Collateralized mortgage obligations	715,981		349		(10,663		)	705,667
Mortgage-backed securities:
Residential	611,201		1,132		(9,381		)	602,952
Commercial	130,103		—		(5,014		)	125,089
Corporate securities	11,576		—		(449		)	11,127
Municipal securities	88,018		358		(1,537		)	86,839
Total debt securities	1,568,884		1,842		(27,044		)	1,543,682
Mutual funds	13,425		—		(367		)	13,058
Total	$	1,582,309	$	1,842	$	(27,411	)	$	1,556,740

Schedule of Realized Gain (Loss)

The proceeds from sales of securities and total gains and losses are listed below:

	Year ended December 31,
	2017			2016			2015
	(Dollars in thousands)
Proceeds from investments sold	$	128,791		$	217,079		$	22,510
Gains from sales of securities	402			1,032			437
Losses from sales of securities	(101		)	(84		)	(13		)
Gains from called securities	—			2			—
Net gain on sales or called securities	$	301		$	950		$	424

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of securities at December 31, 2017, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	December 31, 2017
	Amortized Cost		Estimated Fair Value
	(Dollars in thousands)
Available for sale:
Due within one year	$	—	$	—
Due after one year through five years	11,541		11,729
Due after five years through ten years	33,106		33,581
Due after ten years	42,892		41,702
U.S. Government agency and U.S. Government sponsored enterprises
Collateralized mortgage obligations	856,193		838,709
Mortgage-backed securities:
Residential	477,676		471,214
Commercial	308,046		301,365
Mutual funds	22,425		21,957
Total	$	1,751,879	$	1,720,257

Schedule of Unrealized Loss on Investments

Securities with gross unrealized losses, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated, are as follows:

	December 31, 2017
	Less than 12 months						12 months or longer						Total
Description of Securities	Number  of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number  of Securities	Fair Value		Gross Unrealized Losses
	(Dollars in thousands)
Collateralized mortgage obligations	38	$	425,198	$	(5,954	)	53	$	408,526	$	(11,588	)	91	$	833,724	$	(17,542	)
Mortgage-backed securities:
Residential	20	195,086		(1,282		)	23	230,616		(5,701		)	43	425,702		(6,983		)
Commercial	16	186,357		(1,614		)	8	115,008		(5,067		)	24	301,365		(6,681		)
Corporate securities	1	4,475		(522		)	—	—		—			1	4,475		(522		)
Municipal securities	18	9,295		(69		)	3	22,144		(806		)	21	31,439		(875		)
Mutual funds	1	8,899		(101		)	3	11,579		(384		)	4	20,478		(485		)
Total	94	$	829,310	$	(9,542	)	90	$	787,873	$	(23,546	)	184	$	1,617,183	$	(33,088	)

	December 31, 2016
	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
	(Dollars in thousands)
Collateralized mortgage obligations	66	$	615,803	$	(9,459	)	4	$	36,333	$	(1,204	)	70	$	652,136	$	(10,663	)
Mortgage-backed securities:
Residential	49	497,708		(9,381		)	—	—		—			49	497,708		(9,381		)
Commercial	8	125,089		(5,014		)	—	—		—			8	125,089		(5,014		)
Corporate securities	1	7,014		(2		)	1	4,113		(447		)	2	11,127		(449		)
Municipal securities	95	69,331		(1,537		)	—	—		—			95	69,331		(1,537		)
Mutual funds	3	13,058		(367		)	—	—		—			3	13,058		(367		)
Total	222	$	1,328,003	$	(25,760	)	5	$	40,446	$	(1,651	)	227	$	1,368,449	$	(27,411	)

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Loans Receivable and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Summary of Loans Receivable by Major Category

The following is a summary of loans by major category at December 31, 2017 and 2016:

	December 31, 2017			December 31, 2016
Loan portfolio composition	(Dollars in thousands)
Real estate loans:
Residential	$	49,774		$	57,884
Commercial & industrial	8,142,036			7,842,573
Construction	316,412			254,113
Total real estate loans	8,508,222			8,154,570
Commercial business	1,780,869			1,832,021
Trade finance	166,664			154,928
Consumer and other	647,102			403,470
Total loans outstanding	11,102,857			10,544,989
Deferred loan fees, net	(282		)	(1,657		)
Gross loans receivable	11,102,575			10,543,332
Allowance for loan losses	(84,541		)	(79,343		)
Loans receivable, net	$	11,018,034		$	10,463,989

Loans and Leases Acquired, Accretable Yield Movement Schedule

The following table presents changes in the accretable discount on the PCI loans for the years ended December 31, 2017 and 2016:

	Year ended December 31,
	2017			2016
	(Dollars in thousands)
Balance at beginning of period	$	43,611		$	23,777
Additions due to mergers and acquisitions	—			41,271
Accretion	(21,542		)	(15,817		)
Increase (decrease) in expected cash flows	32,933			(5,620		)
Balance at end of period	$	55,002		$	43,611

Allowance for Loan Losses by Portfolio Segment

The following tables detail the activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2017 and 2016:

	Legacy												Acquired											Total
	Real Estate			Commercial Business			Trade Finance			Consumer and Other			Real Estate			Commercial Business			Trade Finance		Consumer and Other
	(Dollars in thousands)
December 31, 2017
Balance, beginning of period	$	38,956		$	23,430		$	1,897		$	2,116		$	12,791		$	117		$	—	$	36		$	79,343
Provision (credit) for loan losses	8,524			(1,036		)	1,825			2,207			1,341			4,500			42		(43		)	17,360
Loans charged off	(2,292		)	(9,881		)	(2,104		)	(943		)	(850		)	(1,315		)	—		(25		)	(17,410		)
Recoveries of charge offs	172			4,715			56			5			40			225			—		35			5,248
Balance, end of period	$	45,360		$	17,228		$	1,674		$	3,385		$	13,322		$	3,527		$	42	$	3		$	84,541
December 31, 2016
Balance, beginning of period	$	42,829		$	16,332		$	3,592		$	556		$	12,823		$	214		$	—	$	62		$	76,408
Provision (credit) for loan losses	(4,896		)	12,928			(1,695		)	2,229			714			(248		)	—		(32		)	9,000
Loans charged off	(152		)	(7,267		)	—			(757		)	(758		)	(26		)	—		—			(8,960		)
Recoveries of charge offs	1,175			1,437			—			88			12			177			—		6			2,895
Balance, end of period	$	38,956		$	23,430		$	1,897		$	2,116		$	12,791		$	117		$	—	$	36		$	79,343
December 31, 2015
Balance, beginning of period	$	38,775		$	15,986		$	3,456		$	427		$	8,573		$	485		$	—	$	56		$	67,758
Provision (credit) for loan losses	2,828			(577		)	1,424			177			4,270			(117		)	—		(5		)	8,000
Loans charged off	(558		)	(1,971		)	(1,288		)	(630		)	(183		)	(271		)	—		(11		)	(4,912		)
Recoveries of charged offs	1,784			2,894			—			582			163			117			—		22			5,562
Balance, end of period	$	42,829		$	16,332		$	3,592		$	556		$	12,823		$	214		$	—	$	62		$	76,408

The following tables disaggregate the allowance for loan losses and the carrying value of loans receivables by impairment methodology at December 31, 2017 and December 31, 2016:

	December 31, 2017
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	1,378	$	2,807	$	3	$	35	$	246	$	854	$	—	$	—	$	5,323
Collectively evaluated for impairment	43,982		14,421		1,671		3,350		1,036		2,673		42		3		67,178
PCI loans	—		—		—		—		12,040		—		—		—		12,040
Total	$	45,360	$	17,228	$	1,674	$	3,385	$	13,322	$	3,527	$	42	$	3	$	84,541
Loans outstanding:
Individually evaluated for impairment	$	41,041	$	31,322	$	3,951	$	908	$	14,239	$	18,733	$	2,984	$	1,171	$	114,349
Collectively evaluated for impairment	6,172,448		1,459,273		152,204		477,375		2,120,001		244,980		7,525		157,794		10,791,600
PCI loans	—		—		—		—		160,493		26,561		—		9,854		196,908
Total	$	6,213,489	$	1,490,595	$	156,155	$	478,283	$	2,294,733	$	290,274	$	10,509	$	168,819	$	11,102,857

	December 31, 2016
	Legacy								Acquired								Total
	Real Estate		Commercial Business		Trade Finance		Consumer and Other		Real Estate		Commercial Business		Trade Finance		Consumer and Other
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated for impairment	$	1,889	$	4,420	$	864	$	50	$	113	$	73	$	—	$	—	$	7,409
Collectively evaluated for impairment	37,067		19,010		1,033		2,066		548		44		—		36		59,804
PCI loans	—		—		—		—		12,130		—		—		—		12,130
Total	$	38,956	$	23,430	$	1,897	$	2,116	$	12,791	$	117	$	—	$	36	$	79,343
Loans outstanding:
Individually evaluated for impairment	$	74,085	$	34,783	$	6,029	$	733	$	23,865	$	435	$	—	$	431	$	140,361
Collectively evaluated for impairment	5,271,262		1,079,348		75,365		179,961		2,597,200		650,710		70,535		206,802		10,131,183
PCI loans	—		—		—		—		188,158		66,745		2,999		15,543		273,445
Total	$	5,345,347	$	1,114,131	$	81,394	$	180,694	$	2,809,223	$	717,890	$	73,534	$	222,776	$	10,544,989

Impaired Financing Receivables

The recorded investment in individually impaired loans was as follows:

	December 31, 2017			December 31, 2016
	(Dollars in thousands)
With allocated allowance:
Without charge-off	$	28,614		$	59,638
With charge-off	3,044			1,120
With no allocated allowance:
Without charge-off	77,533			76,775
With charge-off	5,158			2,828
Allowance on impaired loans	(5,323		)	(7,409		)
Impaired loans, net of allowance	$	109,026		$	132,952

The following tables detail impaired loans (Total Impaired Loans including Legacy and Acquired and Acquired only) by portfolio segment. Loans with no related allowance for loan losses are believed by management to have adequate collateral securing their carrying value. The Company did not recognize any cash basis interest income for the years ended December 31, 2017 or 2016.

	December 31, 2017						Year Ended December 31, 2017
Total Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	532		531		131		1,120		—
Hotel & Motel	2,931		5,090		284		4,050		67
Gas Station & Car Wash	—		—		—		43		—
Mixed Use	312		958		4		245		6
Industrial & Warehouse	772		1,482		96		1,135		—
Other	4,397		4,401		1,109		11,707		237
Real Estate—Construction	—		—		—		—		—
Commercial Business	18,330		22,757		3,661		23,695		631
Trade Finance	3,861		3,861		3		2,842		217
Consumer and Other	523		524		35		240		4
Subtotal	$	31,658	$	39,604	$	5,323	$	45,077	$	1,162
With No Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	1,105	$	—
Real Estate—Commercial
Retail	11,792		13,923		—		12,288		434
Hotel & Motel	2,841		5,288		—		7,245		—
Gas Station & Car Wash	591		1,764		—		3,168		—
Mixed Use	1,101		3,490		—		3,496		—
Industrial & Warehouse	8,429		8,525		—		8,676		262
Other	20,282		24,412		—		17,116		608
Real Estate—Construction	1,300		1,441		—		1,611		—
Commercial Business	31,725		33,207		—		16,312		697
Trade Finance	3,074		3,091		—		2,994		253
Consumer and Other	1,556		1,676		—		1,225		25
Subtotal	$	82,691	$	96,817	$	—	$	75,236	$	2,279
Total	$	114,349	$	136,421	$	5,323	$	120,313	$	3,441

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	December 31, 2017						Year Ended December 31, 2017
Impaired acquired loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	262		261		126		851		—
Hotel & Motel	85		86		2		105		—
Gas Station & Car Wash	—		—		—		—		—
Mixed Use	129		129		1		179		6
Industrial & Warehouse	221		896		96		225		—
Other	319		323		21		319		17
Real Estate—Construction	—		—		—		—		—
Commercial Business	1,987		2,903		854		1,111		47
Trade Finance	—		—		—		—		—
Consumer and Other	—		—		—		—		—
Subtotal	$	3,003	$	4,598	$	1,100	$	2,790	$	70
With No Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	235	$	—
Real Estate—Commercial
Retail	3,412		4,099		—		2,866		141
Hotel & Motel	482		1,887		—		3,086		—
Gas Station & Car Wash	1		28		—		619		—
Mixed Use	152		2,240		—		2,191		—
Industrial & Warehouse	45		45		—		59		3
Other	9,131		9,951		—		5,190		340
Real Estate—Construction	—		—		—		—		—
Commercial Business	16,746		16,926		—		5,794		182
Trade Finance	2,984		3,001		—		1,274		248
Consumer and Other	1,171		1,291		—		645		7
Subtotal	$	34,124	$	39,468	$	—	$	21,959	$	921
Total	$	37,127	$	44,066	$	1,100	$	24,749	$	991

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	December 31, 2016						Year Ended December 31, 2016
Total Impaired Loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	2,095		2,384		90		1,788		—
Hotel & Motel	6,387		6,387		337		3,650		332
Gas Station & Car Wash	215		228		41		884		—
Mixed Use	206		732		27		350		7
Industrial & Warehouse	530		530		—		547		23
Other	22,580		22,825		1,507		23,690		1,033
Real Estate—Construction	—		—		—		—		—
Commercial Business	26,543		27,161		4,493		32,626		988
Trade Finance	2,111		2,156		864		7,134		25
Consumer and Other	91		91		50		289		4
Subtotal	$	60,758	$	62,494	$	7,409	$	70,958	$	2,412
With No Related Allowance:
Real Estate—Residential	$	3,562	$	3,562	$	—	$	712	$	119
Real Estate—Commercial
Retail	12,753		13,290		—		10,745		451
Hotel & Motel	6,122		11,735		—		8,275		14
Gas Station & Car Wash	5,043		7,449		—		4,817		39
Mixed Use	7,303		7,822		—		3,284		282
Industrial & Warehouse	9,673		9,748		—		10,252		350
Other	20,181		21,492		—		13,086		479
Real Estate—Construction	1,300		1,441		—		1,322		—
Commercial Business	8,675		9,472		—		10,559		203
Trade Finance	3,918		3,918		—		1,674		208
Consumer and Other	1,073		1,136		—		1,026		29
Subtotal	$	79,603	$	91,065	$	—	$	65,752	$	2,174
Total	$	140,361	$	153,559	$	7,409	$	136,710	$	4,586

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	December 31, 2016						Year Ended December 31, 2016
Impaired acquired loans	Recorded Investment*		Unpaid Contractual Principal Balance		Related Allowance		Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	1,826		2,114		85		1,387		—
Hotel & Motel	—		—		—		—		—
Gas Station & Car Wash	—		—		—		203		—
Mixed Use	136		136		2		280		7
Industrial & Warehouse	—		—		—		—		—
Other	337		341		26		327		18
Real Estate—Construction	—		—		—		—		—
Commercial Business	294		339		73		448		5
Trade Finance	—		—		—		—		—
Consumer and Other	—		—		—		32		—
Subtotal	$	2,593	$	2,930	$	186	$	2,677	$	30
With No Related Allowance:
Real Estate—Residential	$	679	$	679	$	—	$	136	$	—
Real Estate—Commercial
Retail	3,148		3,214		—		2,496		152
Hotel & Motel	4,767		7,171		—		5,700		14
Gas Station & Car Wash	1,568		1,815		—		1,506		39
Mixed Use	5,315		5,551		—		1,238		245
Industrial & Warehouse	66		66		—		873		3
Other	6,023		6,752		—		4,021		177
Real Estate—Construction	—		—		—		—		—
Commercial Business	141		386		—		580		2
Trade Finance	—		—		—		—		—
Consumer and Other	431		484		—		453		9
Subtotal	$	22,138	$	26,118	$	—	$	17,003	$	641
Total	$	24,731	$	29,048	$	186	$	19,680	$	671

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

	Year Ended December 31, 2015
Total Impaired Loans	Average Recorded Investment*		Interest Income Recognized during Impairment
	(Dollars in thousands)
With Related Allowance:
Real Estate—Residential	$	—	$	—
Real Estate—Commercial
Retail	3,388		—
Hotel & Motel	10,512		230
Gas Station & Car Wash	1,542		59
Mixed Use	498		9
Industrial & Warehouse	3,686		25
Other	12,585		1,110
Real Estate—Construction	—		—
Commercial Business	31,790		998
Trade Finance	6,209		527
Consumer and Other	153		7
Subtotal	$	70,363	$	2,965
With No Related Allowance:
Real Estate—Residential	$	—	$	—
Real Estate—Commercial
Retail	10,779		464
Hotel & Motel	6,455		93
Gas Station & Car Wash	3,685		107
Mixed Use	2,375		51
Industrial & Warehouse	10,186		254
Other	9,355		362
Real Estate—Construction	1,153		—
Commercial Business	8,722		345
Trade Finance	986		—
Consumer and Other	1,177		26
Subtotal	$	54,873	$	1,702
Total	$	125,236	$	4,667

* Unpaid contractual principal balance less charge-offs, interest applied to principal and purchase discounts.

Aging of Past Due Loans

The following tables present the aging of past due loans as of December 31, 2017 and December 31, 2016 by class of loans:

	December 31, 2017
	Past Due and Accruing								Nonaccrual Loans (2)		Total Delinquent and Nonaccrual Loans
	30-59 Days		60-89  Days		90 or More Days		Total
	(Dollars in thousands)
Legacy Loans
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	2,384		—		—		2,384		3,179		5,563
Hotel & Motel	1,884		1,027		—		2,911		3,931		6,842
Gas Station & Car Wash	956		—		—		956		590		1,546
Mixed Use	129		—		—		129		1,132		1,261
Industrial & Warehouse	1,121		99		—		1,220		3,403		4,623
Other	1,408		—		—		1,408		5,689		7,097
Real Estate—Construction	—		—		—		—		1,300		1,300
Commercial Business	698		505		—		1,203		8,540		9,743
Trade Finance	—		—		—		—		—		—
Consumer and Other	7,512		93		407		8,012		471		8,483
Subtotal	$	16,092	$	1,724	$	407	$	18,223	$	28,235	$	46,458
Acquired Loans (1)
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	81		216		—		297		638		935
Hotel & Motel	—		1,219		—		1,219		568		1,787
Gas Station & Car Wash	1,161		41		—		1,202		1		1,203
Mixed Use	151		—		—		151		152		303
Industrial & Warehouse	804		264		—		1,068		221		1,289
Other	—		—		—		—		1,389		1,389
Real Estate—Construction	—		—		—		—		—		—
Commercial Business	1,088		155		—		1,243		14,560		15,803
Trade Finance	—		—		—		—		—		—
Consumer and Other	957		—		—		957		1,011		1,968
Subtotal	$	4,242	$	1,895	$	—	$	6,137	$	18,540	$	24,677
TOTAL	$	20,334	$	3,619	$	407	$	24,360	$	46,775	$	71,135

⁽¹⁾  Acquired loans exclude PCI loans.

⁽²⁾  Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $22.1 million.

	December 31, 2016
	Past Due and Accruing								Nonaccrual Loans (2)		Total Delinquent and Nonaccrual Loans
	30-59 Days		60-89  Days		90 or More Days		Total
	(Dollars in thousands)
Legacy Loans
Real Estate—Residential	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate—Commercial
Retail	480		—		—		480		3,672		4,152
Hotel & Motel	1,836		3,137		—		4,973		1,392		6,365
Gas Station & Car Wash	362		—		—		362		3,690		4,052
Mixed Use	—		—		—		—		1,305		1,305
Industrial & Warehouse	—		697		—		697		1,922		2,619
Other	2,871		—		—		2,871		4,007		6,878
Real Estate—Construction	—		1,513		—		1,513		1,300		2,813
Commercial Business	558		815		—		1,373		9,371		10,744
Trade Finance	—		500		—		500		2,056		2,556
Consumer and Other	146		58		305		509		229		738
Subtotal	$	6,253	$	6,720	$	305	$	13,278	$	28,944	$	42,222
Acquired Loans (1)
Real Estate—Residential	$	—	$	—	$	—	$	—	$	679	$	679
Real Estate—Commercial
Retail	1,611		—		—		1,611		1,871		3,482
Hotel & Motel	95		—		—		95		4,501		4,596
Gas Station & Car Wash	68		340		—		408		993		1,401
Mixed Use	—		—		—		—		48		48
Industrial & Warehouse	257		—		—		257		—		257
Other	350		—		—		350		2,144		2,494
Real Estate—Construction	—		—		—		—		—		—
Commercial Business	1,303		684		—		1,987		345		2,332
Trade Finance	—		—		—		—		—		—
Consumer and Other	331		25		—		356		549		905
Subtotal	$	4,015	$	1,049	$	—	$	5,064	$	11,130	$	16,194
TOTAL	$	10,268	$	7,769	$	305	$	18,342	$	40,074	$	58,416

⁽¹⁾  Acquired loans exclude PCI loans.

⁽²⁾  Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $15.9 million.

Risk Category of Loans by Class of Loans

The following tables present the risk rating for Legacy Loans and Acquired Loans as of December 31, 2017 and December 31, 2016 by class of loans:

	December 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Total
	(Dollars in thousands)
Legacy Loans:
Real Estate—Residential	$	33,557	$	1,147	$	1,439	$	—	$	36,143
Real Estate—Commercial
Retail	1,640,809		32,723		17,856		—		1,691,388
Hotel & Motel	1,224,597		19,358		8,877		—		1,252,832
Gas Station & Car Wash	737,485		9,013		590		—		747,088
Mixed Use	421,755		4,581		1,477		—		427,813
Industrial & Warehouse	577,344		16,716		24,317		—		618,377
Other	1,133,188		30,030		53,995		—		1,217,213
Real Estate—Construction	219,583		—		3,052		—		222,635
Commercial Business	1,389,043		35,640		65,912		—		1,490,595
Trade Finance	152,583		2,200		1,372		—		156,155
Consumer and Other	477,370		5		908		—		478,283
Subtotal	$	8,007,314	$	151,413	$	179,795	$	—	$	8,338,522
Acquired Loans:
Real Estate—Residential	$	13,369	$	262	$	—	$	—	$	13,631
Real Estate—Commercial
Retail	630,555		6,921		20,797		—		658,273
Hotel & Motel	275,191		4,247		24,987		—		304,425
Gas Station & Car Wash	194,063		2,872		8,992		—		205,927
Mixed Use	94,864		5,725		14,738		—		115,327
Industrial & Warehouse	250,049		14,973		16,358		265		281,645
Other	568,545		19,848		33,335		—		621,728
Real Estate—Construction	93,777		—		—		—		93,777
Commercial Business	236,705		8,593		44,964		12		290,274
Trade Finance	7,455		—		3,054		—		10,509
Consumer and Other	162,495		37		6,202		85		168,819
Subtotal	$	2,527,068	$	63,478	$	173,427	$	362	$	2,764,335
Total	$	10,534,382	$	214,891	$	353,222	$	362	$	11,102,857

	December 31, 2016
	Pass		Special Mention		Substandard		Doubtful/Loss		Total
	(Dollars in thousands)
Legacy Loans:
Real Estate—Residential	$	34,283	$	223	$	2,883	$	—	$	37,389
Real Estate—Commercial
Retail	1,303,452		18,929		15,430		—		1,337,811
Hotel & Motel	1,187,709		12,763		9,026		—		1,209,498
Gas Station & Car Wash	643,282		7,259		3,690		—		654,231
Mixed Use	375,312		—		1,467		—		376,779
Industrial & Warehouse	478,528		29,830		13,745		—		522,103
Other	969,024		22,220		41,017		—		1,032,261
Real Estate—Construction	159,230		14,745		1,300		—		175,275
Commercial Business	1,032,232		15,919		65,885		95		1,114,131
Trade Finance	68,051		5,673		7,670		—		81,394
Consumer and Other	179,864		1		829		—		180,694
Subtotal	$	6,430,967	$	127,562	$	162,942	$	95	$	6,721,566
Acquired Loans:
Real Estate—Residential	$	18,007	$	1,809	$	679	$	—	$	20,495
Real Estate—Commercial
Retail	772,465		9,860		21,110		—		803,435
Hotel & Motel	328,396		5,419		18,233		—		352,048
Gas Station & Car Wash	249,379		8,437		11,338		—		269,154
Mixed Use	118,643		3,105		12,505		8		134,261
Industrial & Warehouse	321,040		31,819		9,048		315		362,222
Other	736,385		23,286		29,099		—		788,770
Real Estate—Construction	78,838		—		—		—		78,838
Commercial Business	649,186		31,340		37,265		99		717,890
Trade Finance	70,535		61		2,938		—		73,534
Consumer and Other	214,437		958		5,949		1,432		222,776
Subtotal	$	3,557,311	$	116,094	$	148,164	$	1,854	$	3,823,423
Total	$	9,988,278	$	243,656	$	311,106	$	1,949	$	10,544,989

Loans Sold From Loans Held For Investment

The following table presents loans sold from loans held for investment or transferred from held for investment to held for sale during the year endedDecember 31, 2017 and 2016 by portfolio segment:

	Year ended December 31,
	2017		2016
	(Dollars in thousands)
Sales or reclassification to held for sale
Real Estate - Commercial	$	429	$	5,920
Real Estate - Construction	—		—
Commercial Business	—		3,457
Consumer	—		2,508
Total	$	429	$	11,885

Allowance for Loan Losses and Impaired Loans, Qualitative and Quantitative Analysis

The following table presents loans by portfolio segment and impairment method at December 31, 2017 and December 31, 2016:

	December 31, 2017
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(Dollars in thousands)
Impaired loans (recorded investment)	$	—		$	53,980		$	1,300		$	50,055		$	6,935		$	2,079		$	114,349
Specific allowance	$	—		$	1,624		$	—		$	3,661		$	3		$	35		$	5,323
Specific allowance to impaired loans	N/A			3.01		%	N/A			7.31		%	0.04		%	1.68		%	4.66		%
Other loans	$	49,774		$	8,088,056		$	315,112		$	1,730,814		$	159,729		$	645,023		$	10,988,508
General allowance	$	88		$	56,040		$	930		$	17,094		$	1,713		$	3,353		$	79,218
General allowance to other loans	0.18		%	0.69		%	0.30		%	0.99		%	1.07		%	0.52		%	0.72		%
Total loans outstanding	$	49,774		$	8,142,036		$	316,412		$	1,780,869		$	166,664		$	647,102		$	11,102,857
Total allowance for loan losses	$	88		$	57,664		$	930		$	20,755		$	1,716		$	3,388		$	84,541
Total allowance to total loans	0.18		%	0.71		%	0.29		%	1.17		%	1.03		%	0.52		%	0.76		%

	December 31, 2016
	Real estate - Residential			Real estate - Commercial			Real estate - Construction			Commercial business			Trade finance			Consumer and other			Total
	(Dollars in thousands)
Impaired loans (recorded investment)	$	3,562		$	93,088		$	1,300		$	35,218		$	6,029		$	1,164		$	140,361
Specific allowance	$	—		$	2,002		$	—		$	4,493		$	864		$	50		$	7,409
Specific allowance to impaired loans	N/A			2.15		%	N/A			12.76		%	14.33		%	4.30		%	5.28		%
Other loans	$	54,322		$	7,749,485		$	252,813		$	1,796,803		$	148,899		$	402,306		$	10,404,628
General allowance	$	209		$	47,915		$	1,621		$	19,054		$	1,033		$	2,102		$	71,934
General allowance to other loans	0.38		%	0.62		%	0.64		%	1.06		%	0.69		%	0.52		%	0.69		%
Total loans outstanding	$	57,884		$	7,842,573		$	254,113		$	1,832,021		$	154,928		$	403,470		$	10,544,989
Total allowance for loan losses	$	209		$	49,917		$	1,621		$	23,547		$	1,897		$	2,152		$	79,343
Total allowance to total loans	0.36		%	0.64		%	0.64		%	1.29		%	1.22		%	0.53		%	0.75		%

Troubled Debt Restructurings

A summary of TDRs on accrual and nonaccrual by type of concession as of December 31, 2017, December 31, 2016, and December 31, 2015 is presented below:

	December 31, 2017
	TDRs on accrual								TDRs on nonaccrual								Total
	Real estate - Commercial		Commercial Business		Other		Sub-Total		Real estate - Commercial		Commercial Business		Other		Sub-Total
	(Dollars in thousands)
Payment concession	$	22,550	$	376	$	—	$	22,926	$	3,071	$	170	$	—	$	3,241	$	26,167
Maturity / Amortization concession	4,768		25,584		7,442		37,794		1,536		5,264		98		6,898		44,692
Rate concession	5,444		996		90		6,530		1,083		18		—		1,101		7,631
Principal forgiveness	—		—		—		—		—		—		—		—		—
Total	$	32,762	$	26,956	$	7,532	$	67,250	$	5,690	$	5,452	$	98	$	11,240	$	78,490

	December 31, 2016
	TDRs on accrual								TDRs on nonaccrual								Total
	Real estate - Commercial		Commercial Business		Other		Sub-Total		Real estate - Commercial		Commercial Business		Other		Sub-Total
	(Dollars in thousands)
Payment concession	$	16,358	$	29	$	—	$	16,387	$	4,417	$	1,717	$	—	$	6,134	$	22,521
Maturity / Amortization concession	1,840		17,471		4,600		23,911		1,313		6,130		2,287		9,730		33,641
Rate concession	6,856		1,665		55		8,576		5,590		387		155		6,132		14,708
Principal forgiveness	—		—		—		—		—		—		—		—		—
Total	$	25,054	$	19,165	$	4,655	$	48,874	$	11,320	$	8,234	$	2,442	$	21,996	$	70,870

The following table presents loans by class modified as TDRs that occurred during the years ended December 31, 2017, 2016, and 2015:

	For The Years Ended December 31,
	2017					2016					2015
	Number of Loans	Pre-Modification		Post-Modification		Number of Loans	Pre-Modification		Post-Modification		Number of Loans	Pre-Modification		Post-Modification
	(Dollars in thousands)
Legacy Loans:
Real Estate - Residential	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Real Estate - Commercial
Retail	2	1,082		1,082		—	—		—		2	750		733
Hotel & Motel	1	1,044		1,044		—	—		—		—	—		—
Gas Station & Car Wash	—	—		—		—	—		—		2	383		351
Mixed Use	—	—		—		—	—		—		2	437		407
Industrial & Warehouse	1	465		465		—	—		—		—	—		—
Other	—	—		—		3	1,675		6,824		2	1,762		1,700
Real Estate - Construction	—	—		—		—	—		—		—	—		—
Commercial business	14	8,507		8,507		12	12,311		7,413		18	9,171		13,234
Trade Finance	—	—		—		—	—		—		2	7,623		2,208
Consumer and Other	—	—		—		1	—		91		1	248		237
Subtotal	18	$	11,098	$	11,098	16	$	13,986	$	14,328	29	$	20,374	$	18,870
Acquired Loans:
Real Estate - Residential	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Real Estate - Commercial
Retail	3	1,642		1,642		1	1,377		1,335		—	—		—
Hotel & Motel	1	482		482		—	—		—		—	—		—
Gas Station & Car Wash	—	—		—		—	—		—		—	—		—
Mixed Use	—	—		—		—	—		—		3	425		416
Industrial & Warehouse	—	—		—		—	—		—		—	—		—
Other	2	6,946		6,946		—	—		—		—	—		—
Real Estate - Construction	—	—		—		—	—		—		—	—		—
Commercial business	8	4,224		4,224		1	13		11		1	56		13
Trade Finance	1	2,983		2,983		—	—		—		—	—		—
Consumer and Other	—	—		—		1	30		25		1	115		104
Subtotal	15	$	16,277	$	16,277	3	$	1,420	$	1,371	5	$	596	$	533
Total	33	$	27,375	$	27,375	19	$	15,406	$	15,699	34	$	20,970	$	19,403

Summary of Troubled Debt Restructurings with Subsequent Payment Default

$4 thousand, and $42 thousand respectively.

The following table presents loans by class for TDRs that have been modified within the previous twelve months and have subsequently had a payment default during the years ended December 31, 2017, 2016, and 2015:

	For The Years Ended December 31,
	2017			2016			2015
	Number of Loans	Balance		Number of Loans	Balance		Number of Loans	Balance
	(Dollars in thousands)
Legacy Loans:
Real Estate - Commercial
Retail	—	$	—	—	$	—	—	$	—
Hotel & Motel	—	—		—	—		—	—
Gas Station & Car Wash	—	—		—	—		1	121
Mixed Use	—	—		—	—		1	103
Industrial & Warehouse	—	—		—	—		—	—
Other	—	—		—	—		1	307
Commercial Business	2	178		4	580		4	2,091
Consumer and Other	—	—		—	—		—	—
Subtotal	2	$	178	4	$	580	7	$	2,622
Acquired Loans:
Real Estate - Commercial
Retail	—	$	—	—	$	—	—	$	—
Hotel & Motel	1	482		—	—		—	—
Mixed Use	—	—		—	—		1	63
Gas Station & Car Wash	—	—		—	—		—	—
Industrial & Warehouse	—	—		—	—		—	—
Other	1	2,977		—	—		—	—
Commercial Business	1	40		1	11		—	—
Consumer and Other	—	—		1	25		1	104
Subtotal	3	$	3,499	2	$	36	2	$	167
Total	5	$	3,677	6	$	616	9	$	2,789

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Goodwill and Other Intangibles Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Information regarding amortizable intangible assets

The following table provides information regarding the amortization of core deposit intangibles at December 31, 2017 and 2016:

		December 31,
		2017					2016
	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
		(Dollars in thousands)
Core deposit intangibles related to:
Center Financial	7 years	$	4,100	$	(3,966	)	$	4,100	$	(3,685	)
Pacific International Bank	7 years	604		(534		)	604		(467		)
Foster Bankshares	10 years	2,763		(1,636		)	2,763		(1,344		)
Wilshire Bancorp	10 years	18,138		(2,946		)	18,138		(883		)
Total		$	25,605	$	(9,082	)	$	25,605	$	(6,379	)

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

The following table provides information regarding the premises and equipment at December 31, 2017 and 2016:

	December 31,
	2017			2016
	(Dollars in thousands)
Land	$	11,244		$	13,723
Building and improvements	23,127			21,315
Furniture, fixtures, and equipment	25,953			23,597
Leasehold improvements	27,018			22,494
Software/License	8,389			6,802
	95,731			87,931
Less: Accumulated depreciation and amortization	(39,017		)	(32,615		)
Total premises and equipment, net	$	56,714		$	55,316

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Deposits (Tables)

12 Months Ended

Dec. 31, 2017

Banking and Thrift [Abstract]

Scheduled maturities for time deposits

At December 31, 2017, the scheduled maturities for time deposits were as follows:

	December 31, 2017
	(Dollars in thousands)
Scheduled maturities in:
2018	$	3,855,966
2019	376,108
2020	17,386
2021	21,054
2022 and thereafter	4,149
Total	$	4,274,663

The following table indicates the maturity schedules of time deposits in amounts of more than $250 thousand as of December 31, 2017:

	More than $250,000
	(Dollars in thousands)
Three months or less	$	249,568
Over three months through six months	473,313
Over six months through twelve months	493,054
Over twelve months	63,173
Total	$	1,279,108

Summary of interest expense on deposits

Interest expense on deposits is summarized as follows:

	Year Ended December 31,
	2017		2016		2015
	(Dollars in thousands)
Money market and NOW	$	31,856	$	21,136	$	12,430
Savings deposits	1,354		1,282		1,670
Time deposits	41,692		25,673		19,312
Total deposit interest expense	$	74,902	$	48,091	$	33,412

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Borrowings (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Contractual Maturities for FHLB-SF Borrowings

At December 31, 2017, the contractual maturities for FHLB advances and federal funds purchased were as follows:

	December 31, 2017
Scheduled maturities in:	(Dollars in thousands)
2018	$	429,900
2019	322,693
2020	185,000
2021	145,000
2022 and thereafter	145,000
Total	$	1,227,593

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Subordinated Debentures (Tables)

12 Months Ended

Dec. 31, 2017

Subordinated Borrowings [Abstract]

Summary of Trust Preferred Securities and Debentures

The following table is a summary of trust preferred securities and debentures at December 31, 2017:

Issuance Trust	Issuance Date	Trust Preferred Security Amount		Subordinated Debentures Amount		Rate Type	Current Rate	Maturity Date
		(Dollars in thousands)
Nara Capital Trust III	06/05/2003	$	5,000	$	5,155	Variable	4.74%	06/15/2033
Nara Statutory Trust IV	12/22/2003	5,000		5,155		Variable	4.21%	01/07/2034
Nara Statutory Trust V	12/17/2003	10,000		10,310		Variable	4.55%	12/17/2033
Nara Statutory Trust VI	03/22/2007	8,000		8,248		Variable	3.24%	06/15/2037
Center Capital Trust I	12/30/2003	18,000		13,827		Variable	4.21%	01/07/2034
Wilshire Statutory Trust II	03/17/2005	20,000		15,314		Variable	3.39%	03/17/2035
Wilshire Statutory Trust III	09/15/2005	15,000		10,767		Variable	2.99%	09/15/2035
Wilshire Statutory Trust IV	07/10/2007	25,000		17,479		Variable	2.97%	09/15/2037
Saehan Capital Trust I	03/30/2007	20,000		14,598		Variable	3.31%	06/30/2037
TOTAL ISSUANCE		$	126,000	$	100,853

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Summary of components of income tax provision

summary of income tax provision follows for the years ended December 31:

	Current		Deferred			Total
	(Dollars in thousands)
2017
Federal	$	64,910	$	31,464		$	96,374
State	24,739		3,276			28,015
	$	89,649	$	34,740		$	124,389
2016
Federal	$	50,780	$	4,198		$	54,978
State	20,922		1,552			22,474
	$	71,702	$	5,750		$	77,452
2015
Federal	$	47,919	$	(1,393	)	$	46,526
State	16,548		17			16,565
	$	64,467	$	(1,376	)	$	63,091

Reconciliation of effective tax rate

A reconciliation of the difference between the federal statutory income tax rate and the effective tax rate is shown in the following table for the years ended December 31:

	Year Ended December 31,
	2017		2016		2015
Statutory tax rate	35.00	%	35.00	%	35.00	%
State taxes-net of federal tax effect	7.04	%	7.28	%	7.21	%
Rate change - federal and state	9.36	%	—	%	—	%
CRA investment tax credit	(3.50	)%	(2.40	)%	(1.31	)%
Bank owned life insurance	(0.09	)%	(0.26	)%	(0.25	)%
Municipal securities	(0.45	)%	(0.22	)%	(0.15	)%
Nondeductible transaction costs	(0.02	)%	0.80	%	—	%
Other	(0.19	)%	0.31	%	0.11	%
Effective income tax rate	47.15	%	40.51	%	40.61	%

Components of deferred tax assets and liabilities

Deferred tax assets and liabilities at December 31, 2017 and 2016 are comprised of the following:

	At December 31,
	2017			2016
	(Dollars in thousands)
Deferred tax assets:
Purchase accounting fair value adjustment	$	21,508		$	42,009
Statutory bad debt deduction less than financial statement provision	20,162			26,574
Net operating loss carryforward	2,351			4,171
Investment security provision	593			1,646
State tax deductions	4,304			5,669
Accrued compensation	149			207
Deferred compensation	214			348
Mark to market on loans held for sale	764			1,244
Depreciation	221			3,157
Nonaccrual loan interest	6,272			7,330
Other real estate owned	1,753			1,507
FDIC loss share receivable	362			772
Unrealized loss on securities available for sale	8,961			9,989
Non-qualified stock option and restricted share expense	1,339			2,187
Goodwill	203			490
Other	3,053			7,063
Total Deferred Tax Assets	$	72,209		$	114,363
Deferred tax liabilities:
FHLB stock dividends	$	(695	)	$	(1,054	)
Deferred loan costs	(5,857		)	(7,085		)
State taxes deferred and other	(3,229		)	(6,629		)
Prepaid expenses	(1,542		)	(1,840		)
Amortization of intangibles	(5,236		)	(8,639		)
Lease expense	(447		)	(1,006		)
Total Deferred Tax Liabilities	$	(17,006	)	$	(26,253	)
Net deferred tax assets:	$	55,203		$	88,110

Summary of net operating loss carryforwards

A summary of the Company’s net operating loss carry-forwards is as follows:

	Federal					State
	Remaining Amount		Expires	Annual Limitation		Remaining Amount		Expires	Annual Limitation
	(Dollars in thousands)
2017
Saehan Bank (acquired by Wilshire)	$	2,940	2030	$	226	$	2,940	2030	$	226
Korea First Bank of New York	991		2019	497		—		N/A	—
Pacific International Bank	6,089		2032	420		—		N/A	—
Total	$	10,020		$	1,143	$	2,940		$	226
2016
Saehan Bank (acquired by Wilshire)	$	3,166	2030	$	226	$	3,166	2030	$	226
Korea First Bank of New York	1,488		2019	497		—		N/A	—
Pacific International Bank	6,509		2032	420		—		N/A	—
Total	$	11,163		$	1,143	$	3,166		$	226

Reconciliation of beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2017 and 2016 is as follows:

	At December 31,
	2017			2016
	(Dollars in thousands)
Balance at January 1,	$	2,187		$	1,816
Additions based on tax positions related to the prior year through acquisition	3			1,399
Expiration of the statute of limitations for assessment of taxes	—			(916		)
Settlements with taxing authorities	(65		)	(112		)
Balance at December 31,	$	2,125		$	2,187

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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Option Activity Under the Plan

The following is a summary of stock option activity under the 2007 and 2016 Plans for the year ended December 31, 2017:

	Number of Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding - January 1, 2017	1,603,876		$	15.28
Granted	—		—
Exercised	(215,270	)	8.46
Expired	(250,762	)	21.61
Forfeited	(62,421	)	17.17
Outstanding - December 31, 2017	1,075,423		$	15.06	7.26	$	3,433,460
Options exercisable - December 31, 2017	644,086		$	13.81	6.54	$	2,857,618

Summary of Restricted and Performance Unit Activity Under the Plan

The following is a summary of restricted and performance unit activity under the 2007 and 2016 Plans for the year ended December 31, 2017:

	Number of Shares		Weighted- Average Grant Date Fair Value
Outstanding - January 1, 2017	398,658		$	16.16
Granted	165,612		16.77
Vested	(149,792	)	16.15
Forfeited	(35,059	)	16.30
Outstanding - December 31, 2017	379,419		$	16.42

Estimated Annual Stock-Based Compensation Expense

The estimated annual stock-based compensation expense as of December 31, 2017 for each of the succeeding years is indicated in the table below:

	Stock Based Compensation Expense
	(Dollars in thousands)
For the year ended December 31:
2018	$	2,757
2019	1,466
2020	864
2021	420
2022	42
Total	$	5,549

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Lease Commitments

The Company leases its premises under non-cancelable operating leases, and at December 31, 2017, the future minimum rental commitments under these leases are as follows:

	December 31, 2017
	(Dollars in thousands)
2018	$	14,055
2019	12,124
2020	9,774
2021	9,426
2022	5,456
Thereafter	15,863
	$	66,698

Commitments

Commitments at December 31, 2017 and 2016 are summarized as follows:

	December 31,
	2017		2016
	(Dollars in thousands)
Commitments to Fund Low Income Housing Partnership Investments	$	38,467	$	24,409
Unused Credit Extensions	1,526,981		1,592,221
Standby Letters of Credit	74,748		63,753
Other Commercial Letters of Credit	74,147		52,125
	$	1,714,343	$	1,732,508

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

				Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2017			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Securities available-for-sale:
U.S. Government agency and U.S. Government sponsored enterprises:
Debt securities	$	—		$	—	$	—		$	—
Collateralized mortgage obligations	838,709			—		838,709			—
Mortgage-backed securities:
Residential	471,214			—		471,214			—
Commercial	301,365			—		301,365			—
Corporate securities	4,475			—		4,475			—
Municipal securities	82,537			—		81,429			1,108
Mutual funds	21,957			21,957		—			—
Interest rate swaps	(2,838		)	—		(2,838		)	—
Mortgage banking derivatives	33			—		33			—
Liabilities:
Interest rate swaps	(2,838		)	—		(2,838		)	—
Mortgage banking derivatives	5			—		5			—

				Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2016			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Securities available for sale:
U.S. Government agency and U.S. Government sponsored enterprises:
Debt securities	$	12,008		$	—	$	12,008		$	—
Collateralized mortgage obligations	705,667			—		705,667			—
Mortgage-backed securities:
Residential	602,952			—		602,952			—
Commercial	125,089			—		125,089			—
Corporate securities	11,127			—		11,127			—
Municipal securities	86,839			—		85,700			1,139
Mutual funds	13,058			13,058		—			—
Interest rate swaps	(1,565		)	—		(1,565		)	—
Mortgage banking derivatives	147			—		147			—
Liabilities:
Interest rate swaps	(1,565		)	—		(1,565		)	—
Mortgage banking derivatives	41			—		41			—

Assets Measured at Fair Value on a Non-recurring Basis

Assets measured at fair value on a non-recurring basis at December 31, 2017 and 2016 are summarized below:

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Impaired loans at fair value:
Real estate	$	6,086	$	—	$	—	$	6,086
Commercial business	3,320		—		—		3,320
Consumer	84		—		—		84
Other real estate owned	5,615		—		—		5,615

			Fair Value Measurements at the End of the Reporting Period Using
	December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets:
Impaired loans at fair value:
Real estate	$	58,882	$	—	$	—	$	58,882
Commercial business	6,563		—		—		6,563
Consumer	253		—		—		253
Loans held for sale, net	3,788		—		3,788		—
Other real estate owned	21,990		—		—		21,990

For assets measured at fair value on a non-recurring basis, the total net (losses) gains, which include charge offs, recoveries, specific reserves, and gains and losses on sales recognized in 2017 and 2016 are summarized below:

	Year Ended December 31,
	2017			2016
	(Dollars in thousands)
Assets:
Impaired loans at fair value:
Real estate	$	(2,552	)	$	163
Commercial business	(5,424		)	(5,856		)
Trade finance	(1,187		)	1,739
Consumer	(912		)	(713		)
Loans held for sale, net	12			2,920
Other real estate owned	(1,962		)	2,245

Carrying Amounts and Estimated Fair Values of Financial Instruments

Carrying amounts and estimated fair values of financial instruments, not previously presented, at December 31, 2017 and December 31, 2016 were as follows:

	December 31, 2017
	Carrying Amount		Estimated Fair Value		Fair Value Measurement
	(Dollars in thousands)
Financial Assets:
Cash and cash equivalents	$	492,000	$	492,000	Level 1
Interest bearing deposits in other financial institutions and other investments	53,366		52,960		Level 2/3
Loans held for sale	29,661		32,048		Level 2
Loans receivable—net	11,018,034		11,112,179		Level 3
FHLB stock	29,776		N/A		N/A
Accrued interest receivable	29,979		29,979		Level 2/3
Servicing assets	24,710		27,511		Level 3
Customers’ liabilities on acceptances	1,691		1,691		Level 2
Financial Liabilities:
Noninterest bearing deposits	$	2,998,734	$	2,998,734	Level 2
Saving and other interest bearing demand deposits	3,573,212		3,573,212		Level 2
Time deposits	4,274,663		4,263,585		Level 2
FHLB advances	1,157,693		1,220,529		Level 2
Federal funds purchased	69,900		69,900		Level 2
Subordinated debentures	100,853		100,853		Level 2
Accrued interest payable	15,961		15,961		Level 2
Acceptances outstanding	1,691		1,691		Level 2
	December 31, 2016
	Carrying Amount		Estimated Fair Value		Fair Value Measurement
	(Dollars in thousands)
Financial Assets:
Cash and cash equivalents	$	437,334	$	437,334	Level 1
Interest bearing deposits in other financial institutions and other investments	44,202		43,773		Level 2/3
Loans held for sale	22,785		24,492		Level 2
Loans receivable—net	10,463,989		10,666,642		Level 3
FHLB stock	21,964		N/A		N/A
Accrued interest receivable	26,880		26,880		Level 2/3
Servicing assets	26,457		29,030		Level 3
Customers’ liabilities on acceptances	2,899		2,899		Level 2
Financial Liabilities:
Noninterest bearing deposits	$	2,900,241	$	2,900,241	Level 2
Saving and other interest bearing demand deposits	3,703,352		3,703,352		Level 2
Time deposits	4,038,442		4,036,664		Level 2
FHLB advances	754,290		749,486		Level 2
Subordinated debentures	99,808		99,808		Level 2
Accrued interest payable	10,863		10,863		Level 2
Acceptances outstanding	2,899		2,899		Level 2

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Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

At December 31, 2017 and 2016, the following interest rate swaps related to our loan hedging program were outstanding:

	December 31, 2017			December 31, 2016
	(Dollars in thousands)
Interest rate swaps on loans with loan customers
Notional amount	$	274,156		$	223,098
Weighted average remaining term (years)	7.3			7.4
Received fixed rate (weighted average)	4.34		%	4.29		%
Pay variable rate (weighted average)	3.74		%	3.06		%
Estimated fair value	$	(2,838	)	$	(1,565	)
Back to back interest rate swaps with correspondent banks
Notional amount	$	274,156		$	223,098
Weighted average remaining term (years)	7.3			7.4
Received variable rate (weighted average)	3.74		%	3.06		%
Pay fixed rate (weighted average)	4.34		%	4.29		%
Estimated fair value	$	2,838		$	1,565

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Stockholders’ Equity(Tables)

12 Months Ended

Dec. 31, 2017

Stockholders’ Equity and Regulatory Matters [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Accumulated Other Comprehensive Loss

The following table presents the changes to accumulated other comprehensive loss at December 31, 2017, 2016, and 2015:

	December 31, 2017			December 31, 2016			December 31, 2015
	(Dollars in thousands)
Balance at beginning of period	$	(14,657	)	$	(1,832	)	$	1,705
Unrealized losses on securities available for sale    and interest only strips	(5,796		)	(21,273		)	(5,717		)
Reclassification adjustments for gains realized in income	(301		)	(950		)	(424		)
Less tax benefit	(2,570		)	(9,398		)	(2,604		)
Total other comprehensive loss	(3,527		)	(12,825		)	(3,537		)
Reclassification from AOCI to retained earnings due to tax reform	$	(3,597	)	$	—		$	—
Balance at end of period	$	(21,781	)	$	(14,657	)	$	(1,832	)

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Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2017

Banking and Thrift [Abstract]

Schedule of Actual Amounts and Ratios

The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below:

	Actual				Required For Capital Adequacy Purposes				Minimum Capital Adequacy With Capital Conservation Buffer				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
December 31, 2017
Common equity tier 1 capital (to risk-weighted assets):
Company	$	1,471,193	12.30	%	$	538,435	4.50	%	$	688	5.75	%	N/A		N/A
Bank	$	1,548,401	12.95	%	$	538,178	4.50	%	$	688	5.75	%	$	777,368	6.50	%
Total capital (to risk-weighted assets):
Company	$	1,653,521	13.82	%	$	957,217	8.00	%	$	1,106,782	9.25	%	N/A		N/A
Bank	$	1,633,778	13.66	%	$	956,761	8.00	%	$	1,106,255	9.25	%	$	1,195,951	10.00	%
Tier I capital (to risk-weighted assets):
Company	$	1,568,144	13.11	%	$	717,913	6.00	%	$	867,478	7.25	%	N/A		N/A
Bank	$	1,548,401	12.95	%	$	717,571	6.00	%	$	687,672	7.25	%	$	956,761	8.00	%
Tier I capital (to average assets):
Company	$	1,568,144	11.54	%	$	543,528	4.00	%	N/A		N/A		N/A		N/A
Bank	$	1,548,401	11.40	%	$	543,441	4.00	%	N/A		N/A		$	679,301	5.00	%
	Actual				Required For Capital Adequacy Purposes				Minimum Capital Adequacy With Capital Conservation Buffer				Required To Be Well Capitalized under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
December 31, 2016
Common equity tier 1 capital (to risk-weighted assets):
Company	$	1,400,246	12.10	%	$	520,917	4.50	%	$	593,267	5.125	%	N/A		N/A
Bank	$	1,475,228	12.75	%	$	520,631	4.50	%	$	592,941	5.125	%	$	752,022	6.50	%
Total capital (to risk-weighted assets):
Company	$	1,578,690	13.64	%	$	926,076	8.00	%	$	998,425	8.625	%	N/A		N/A
Bank	$	1,557,765	13.46	%	$	925,566	8.00	%	$	997,876	8.625	%	$	1,156,957	10.00	%
Tier I capital (to risk-weighted assets):
Company	$	1,496,153	12.92	%	$	694,557	6.00	%	$	766,906	6.625	%	N/A		N/A
Bank	$	1,475,228	12.75	%	$	694,174	6.00	%	$	766,484	6.625	%	$	925,566	8.00	%
Tier I capital (to average assets):
Company	$	1,496,153	11.49	%	$	520,947	4.00	%	N/A		N/A		N/A		N/A
Bank	$	1,475,228	11.33	%	$	520,903	4.00	%	N/A		N/A		$	651,129	5.00	%

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Computation of basic and diluted EPS

The following table shows the computation of basic and diluted EPS for the years ended December 31, 2017, 2016, and 2015:

	Net income available to common stockholders (Numerator)		Weighted Average Shares (Denominator)	Per Share (Amount)
	(Dollars in thousands, except share and per share data)
2017
Basic EPS - common stock	$	139,445	135,348,938	$	1.03
Effect of Dilutive Securities:
Stock Options and Performance Units			336,031
Diluted EPS - common stock	$	139,445	135,684,969	$	1.03
2016
Basic EPS - common stock	$	113,747	103,289,059	$	1.10
Effect of Dilutive Securities:
Stock Options and Performance Units			241,259
Diluted EPS - common stock	$	113,747	103,530,318	$	1.10
2015
Basic EPS - common stock	$	92,258	79,549,651	$	1.16
Effect of Dilutive Securities:
Stock Options and Performance Units			31,905
Common stock warrants			30,244
Diluted EPS - common stock	$	92,258	79,611,800	$	1.16

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Servicing Assets (Tables)

12 Months Ended

Dec. 31, 2017

Transfers and Servicing [Abstract]

Servicing Asset at Amortized Cost

The changes in net servicing assets for the year endedDecember 31, 2017 and 2016 were as follows:

	Year Ended December 31,
	2017			2016
	(Dollars in thousands)
Balance at beginning of period	$	26,457		$	12,000
Additions through originations of servicing assets	5,492			4,472
Additions through acquisition of Wilshire (net of servicing liabilities)	—			15,873
Amortization	(7,239		)	(5,888		)
Balance at end of period	$	24,710		$	26,457

Schedule of Servicing Assets at Fair Value

Total servicing assets at December 31, 2017 totaled $24.7 million, and was comprised of $22.2 million in SBA servicing assets and $2.5 million in mortgage related servicing assets. At December 31, 2016, servicing assets totaled $26.5 million, comprised of $24.7 million in SBA servicing assets and $1.8 million in mortgage related servicing assets.

The Company utilizes the discounted cash flow method to calculate the initial excess servicing assets. The inputs used in determining the fair value of the servicing assets at December 31, 2017 and December 31, 2016 are presented below.

	December 31, 2017	December 31, 2016
	Range	Range
SBA Servicing Assets:
Weighted-average discount rate	10.13% ~ 11.13%	5.55% ~ 9.85%
Constant prepayment rate	7.50% ~ 12.50%	7.20% ~ 12.10%
Mortgage Servicing Assets:
Weighted-average discount rate	9.50% ~ 9.66%	7.00% ~ 7.25%
Constant prepayment rate	7.71% ~ 9.13%	13.77% ~ 15.88%

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Condensed Financial Statements of Parent Company (Tables)

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Statements of Financial Condition

STATEMENTS OF FINANCIAL CONDITION

	December 31,
	2017		2016
	(Dollars in thousands)
ASSETS:
Cash and cash equivalents	$	13,327	$	13,859
Other assets	10,763		11,428
Investment in bank subsidiary	2,005,462		1,930,455
TOTAL ASSETS	$	2,029,552	$	1,955,742
LIABILITIES:
Other borrowings	$	100,853	$	99,808
Accounts payable and other liabilities	444		461
Total liabilities	101,297		100,269
STOCKHOLDERS’ EQUITY	1,928,255		1,855,473
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,029,552	$	1,955,742

Statements of Income and Comprehensive Income

STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	Years Ended December 31,
	2017			2016			2015
	(Dollars in thousands)
Interest income	$	—		$	—		$	—
Interest expense	5,089			2,927			1,561
Other operating expense	5,988			9,826			4,967
Equity in earnings of bank subsidiary	146,397			121,996			96,318
Income before income tax benefit	135,320			109,243			89,790
Income tax benefit	4,125			4,504			2,468
Net income	139,445			113,747			92,258
Other comprehensive loss, net of tax	(3,527		)	(12,825		)	(3,537		)
Comprehensive income	$	135,918		$	100,922		$	88,721

Statements of Cash Flows

STATEMENTS OF CASH FLOWS

	Years Ended December 31,
	2017			2016			2015
	(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	139,445		$	113,747		$	92,258
Adjustments to reconcile net income to net cash from   operating activities:
Amortization	1,045			558			188
Stock-based compensation expense	523			—			—
Change in other assets	665			2,172			717
Change in accounts payable and other liabilities	(17		)	(119		)	(1,053		)
Equity in undistributed earnings of bank subsidiary	(76,397		)	(77,996		)	(62,318		)
Net cash from operating activities	65,264			38,362			29,792
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash and cash equivalents acquired through the merger	—			13,248			—
Net cash from investing activities	—			13,248			—
CASH FLOWS USED IN FINANCING ACTIVITIES:
Issuance of additional stock pursuant to various stock plans	1,865			—			—
Redemption of common stock warrant	—			—			(1,150		)
Payments of cash dividends	(67,661		)	(42,493		)	(33,407		)
Net cash used in financing activities	(65,796		)	(42,493		)	(34,557		)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(532		)	9,117			(4,765		)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	13,859			4,742			9,507
CASH AND CASH EQUIVALENTS, END OF YEAR	$	13,327		$	13,859		$	4,742

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Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

Summarized unaudited quarterly financial data follows for the three months ended:

	2017 Quarter Ended,
	March 31		June 30		September 30		December 31
	(Dollars in thousands, except per share data)
Interest income	$	132,743	$	138,533	$	147,643	$	153,185
Interest expense	17,838		21,713		24,380		26,793
Net interest income before provision for loan losses	114,905		116,820		123,263		126,392
Provision for loan losses	5,600		2,760		5,400		3,600
Net interest income after provision for loan losses	109,305		114,060		117,863		122,792
Noninterest income	17,603		16,115		16,246		16,451
Noninterest expense	67,699		64,037		61,837		73,028
Income before income tax provision	59,209		66,138		72,272		66,215
Income tax provision	22,999		25,451		27,708		48,231
Net income	$	36,210	$	40,687	$	44,564	$	17,984
Basic earnings per common share	$	0.27	$	0.30	$	0.33	$	0.13
Diluted earnings per common share	$	0.27	$	0.30	$	0.33	$	0.13

	2016 Quarter Ended,
	March 31		June 30		September 30		December 31
	(Dollars in thousands, except per share data)
Interest income	$	83,461	$	83,534	$	119,552	$	135,387
Interest expense	11,853		12,470		16,078		18,178
Net interest income before provision for loan losses	71,608		71,064		103,474		117,209
Provision for loan losses	500		1,200		6,500		800
Net interest income after provision for loan losses	71,108		69,864		96,974		116,409
Noninterest income	8,774		10,707		14,146		18,192
Noninterest expense	40,050		40,348		67,846		66,731
Income before income tax provision	39,832		40,223		43,274		67,870
Income tax provision	16,210		16,833		17,169		27,240
Net income	$	23,622	$	23,390	$	26,105	$	40,630
Basic earnings per common share	$	0.30	$	0.29	$	0.22	$	0.30
Diluted earnings per common share	$	0.30	$	0.29	$	0.22	$	0.30

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Summary of Significant Accounting Policies - Additional information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule of Significant Accounting Policies [Line Items]
Real Estate Owned, Transfer from Real Estate Owned	$ 7,173	$ 5,646	$ 11,373
Other Real Estate, Valuation Adjustments	3,700
Loss Contingency Accrual	414	557
Reserve and clearing requirement balance	0
Impairment of investments in affordable housing partnership	4,846	0	0
Impairment of investments in affordable housing partnership, noninterest expense	3,200
Impairment of investments in affordable housing partnership, Tax Act result	1,600
Payments of cash dividends on Common Stock	67,700	42,500
Proceeds from sales of OREO	14,802	$ 17,390	$ 11,309
Excess tax benefits from share-based payment awards	118
Reclassification of stranded tax effects to retained earnings - ASU 2018-02	0
Retained Earnings
Schedule of Significant Accounting Policies [Line Items]
Reclassification of stranded tax effects to retained earnings - ASU 2018-02	$ 3,597
Minimum | Buildings
Schedule of Significant Accounting Policies [Line Items]
Estimated useful lives	15 years
Minimum | Furniture , fixture and equipment
Schedule of Significant Accounting Policies [Line Items]
Estimated useful lives	3 years
Minimum | Computer equipment
Schedule of Significant Accounting Policies [Line Items]
Estimated useful lives	1 year
Minimum | Computer Software
Schedule of Significant Accounting Policies [Line Items]
Estimated useful lives	1 year
Maximum | Buildings
Schedule of Significant Accounting Policies [Line Items]
Estimated useful lives	39 years
Maximum | Furniture , fixture and equipment
Schedule of Significant Accounting Policies [Line Items]
Estimated useful lives	10 years
Maximum | Computer equipment
Schedule of Significant Accounting Policies [Line Items]
Estimated useful lives	5 years
Maximum | Computer Software
Schedule of Significant Accounting Policies [Line Items]
Estimated useful lives	5 years

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Mergers and Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		3 Months Ended
	Jul. 29, 2016	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Liabilities Assumed:
Goodwill		$ 464,450				$ 462,997
Wilshire Bancorp, Inc
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Common stock received for each share of Wilshire common stock	0.7034
Issuance of shares in exchange for Wilshire common stock	$ 852,939
Cash paid for fractional shares	3
Hope stock options issued in exchange Wilshire stock options	3,370
Total consideration paid	856,312
Assets Acquired:
Cash and cash equivalents	100,127
Investment securities available for sale	478,938
Loans receivable	3,800,807
FRB and FHLB stock	16,539
OREO	13,173
Premises and equipment	16,812
Bank owned life insurance	25,240
Servicing assets	16,203
Low income housing tax credit investments	47,111
Core deposit intangibles	18,138
Deferred tax assets, net	17,698
Other assets	76,818
Liabilities Assumed:
Deposits	(3,812,367)
Borrowings	(206,282)
Subordinated Debentures	(56,942)
Other liabilities	(54,751)
Total identifiable net assets	497,262
Goodwill	$ 359,050	359,000
Adjustment to deferred tax assets acquired		$ (1,400)	$ 475	$ 475	$ 978	(1,400)
Decrease in goodwill					978	$ (1,400)
Wilshire Bancorp, Inc | Other real estate owned
Liabilities Assumed:
Adjustment to deferred tax assets acquired					(1,700)
Wilshire Bancorp, Inc | Deferred Tax Assets
Liabilities Assumed:
Adjustment to deferred tax assets acquired					$ 716

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Mergers and Acquisitions - Fair value of loans acquired and pro forma information (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Jul. 29, 2016
Fair value of loans acquired:
Carrying amount of acquired loans	$ 11,018,034	$ 10,463,989
Wilshire Bancorp, Inc
Fair value of loans acquired:
Contractually required principal and interest at acquisition			$ 292,380
Contractual cash flows not expected to be collected (nonaccretable discount)			(8,002)
Expected cash flows at acquisition			284,378
Interest component of expected cash flows (accretable discount)			41,271
Fair value of acquired impaired loans			$ 243,107
Carrying amount of acquired loans	$ 2,600,000	$ 3,590,000

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Mergers and Acquisitions Summary of Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								5 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Acquisition-related expenses										$ 1,781	$ 16,914	$ 1,540
Actual from Acquisition Date Through December 31,
Net Interest Income									$ 197,953
Provision for loan losses									6,490	17,360	9,000	8,000
Noninterest income	$ 16,451	$ 16,246	$ 16,115	$ 17,603	$ 18,192	$ 14,146	$ 10,707	$ 8,774	29,546	66,415	51,819	43,691
Noninterest expense	73,028	61,837	64,037	67,699	66,731	67,846	40,348	40,050	120,954	266,601	214,975	153,384
Income tax provision	$ 48,231	$ 27,708	$ 25,451	$ 22,999	$ 27,240	$ 17,169	$ 16,833	$ 16,210	39,828	$ 124,389	77,452	63,091
Net income, Actual through acquisition date									$ 60,227
Pro forma: from the beginning of the period
Net Interest Income											456,556	449,501
Provision for Loan Losses											4,000	8,700
Noninterest Income											75,266	89,345
Noninterest Expense											235,013	255,401
Income Tax Expense (Benefit)											118,613	111,581
Net income, pro forma											$ 174,196	$ 163,164
Earnings Per Share, Basic											$ 1.29	$ 1.21
Earnings Per Share, Diluted											$ 1.29	$ 1.21
Wilshire Bancorp, Inc
Business Acquisition [Line Items]
Acquisition-related expenses											$ 25,700	$ 1,400

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Mergers and Acquisitions -Acquisition Related Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Acquisition-related expenses	$ 1,781	$ 16,914	$ 1,540
Merger and integration expense
Business Acquisition [Line Items]
Acquisition-related expenses	1,781	16,914	1,540
Wilshire Bancorp, Inc
Business Acquisition [Line Items]
Acquisition-related expenses		25,700	1,400
Wilshire Bancorp, Inc | Merger and integration expense
Business Acquisition [Line Items]
Acquisition-related expenses	1,224	16,818	1,414
U & I Financial Corp [Member] | Merger and integration expense
Business Acquisition [Line Items]
Acquisition-related expenses	467	0	0
Series of Individually Immaterial Business Acquisitions [Member] | Merger and integration expense
Business Acquisition [Line Items]
Acquisition-related expenses	$ 90	$ 96	$ 126

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Securities Available for Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 1,751,879	$ 1,582,309
Gross Unrealized Gains	1,466	1,842
Gross Unrealized Losses	(33,088)	(27,411)
Estimated Fair Value	1,720,257	1,556,740
Amount of other than temporary impairment loss recognized	0
Collateralized Mortgage Obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	856,193	715,981
Gross Unrealized Gains	58	349
Gross Unrealized Losses	(17,542)	(10,663)
Estimated Fair Value	838,709	705,667
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	477,676	611,201
Gross Unrealized Gains	521	1,132
Gross Unrealized Losses	(6,983)	(9,381)
Estimated Fair Value	471,214	602,952
Commercial Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	308,046	130,103
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(6,681)	(5,014)
Estimated Fair Value	301,365	125,089
Corporate securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,997	11,576
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(522)	(449)
Estimated Fair Value	4,475	11,127
Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	82,542	88,018
Gross Unrealized Gains	870	358
Gross Unrealized Losses	(875)	(1,537)
Estimated Fair Value	82,537	86,839
Total debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,729,454	1,568,884
Gross Unrealized Gains	1,449	1,842
Gross Unrealized Losses	(32,603)	(27,044)
Estimated Fair Value	1,698,300	1,543,682
Mutual funds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	22,425	13,425
Gross Unrealized Gains	17	0
Gross Unrealized Losses	(485)	(367)
Estimated Fair Value	$ 21,957	13,058
US Government-sponsored Enterprises Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		12,005
Gross Unrealized Gains		3
Gross Unrealized Losses		0
Estimated Fair Value		$ 12,008
Credit concentration risk | Stockholders' equity | Non-US government and agency securities
Schedule of Available-for-sale Securities [Line Items]
Maximum exposure to any single issuer	10.00%

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Securities Available for Sale - Proceeds, Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Proceeds from investments sold	$ 128,791	$ 217,079	$ 22,510
Gains from sales/calls of securities	402	1,032	437
Losses from sales of securities	(101)	(84)	(13)
Net gain on sales or called securities	301	950	424
Call Option [Member]
Debt Instrument [Line Items]
Gains from sales/calls of securities	$ 0	$ 2	$ 0

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Securities Available for Sale - Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost - Due within one year	$ 0
Amortized Cost - Due after one year through five years	11,541
Amortized Cost - Due after five years through ten years	33,106
Amortized Cost - Due after ten years	42,892
Amortized Cost	1,751,879	$ 1,582,309
Estimated Fair Value - Due within one year	0
Estimated Fair Value - Due after one year through five years	11,729
Estimated Fair Value - Due after five years through ten years	33,581
Estimated Fair Value - Due after ten years	41,702
Estimated Fair Value	1,720,257	1,556,740
Available-for-sale Securities Pledged as Collateral	359,200	382,100
Collateralized Mortgage Obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	856,193
Amortized Cost	856,193	715,981
Estimated Fair Value	838,709
Estimated Fair Value	838,709	705,667
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	477,676
Amortized Cost	477,676	611,201
Estimated Fair Value	471,214
Estimated Fair Value	471,214	602,952
Commercial Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	308,046
Amortized Cost	308,046	130,103
Estimated Fair Value	301,365
Estimated Fair Value	301,365	125,089
Mutual funds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	22,425
Amortized Cost	22,425	13,425
Estimated Fair Value	21,957
Estimated Fair Value	21,957	13,058
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,997	11,576
Estimated Fair Value	$ 4,475	$ 11,127

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Securities Available for Sale - Aggregate Unrealized Losses and Fair Value (Details) $ in Thousands	Dec. 31, 2017 USD ($) security	Dec. 31, 2016 USD ($) security
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months | security	94	222
Number of Securities, 12 months or longer | security	90	5
Number of Securities, Total | security	184	227
Fair Value - Less than 12 months	$ 829,310	$ 1,328,003
Fair Value - 12 months or longer	787,873	40,446
Fair Value - Total	1,617,183	1,368,449
Gross Unrealized Losses - Less than 12 months	(9,542)	(25,760)
Gross Unrealized Losses - 12 months or longer	(23,546)	(1,651)
Gross Unrealized Losses - Total	$ (33,088)	$ (27,411)
Collateralized Mortgage Obligations
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months | security	38	66
Number of Securities, 12 months or longer | security	53	4
Number of Securities, Total | security	91	70
Fair Value - Less than 12 months	$ 425,198	$ 615,803
Fair Value - 12 months or longer	408,526	36,333
Fair Value - Total	833,724	652,136
Gross Unrealized Losses - Less than 12 months	(5,954)	(9,459)
Gross Unrealized Losses - 12 months or longer	(11,588)	(1,204)
Gross Unrealized Losses - Total	$ (17,542)	$ (10,663)
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months | security	20	49
Number of Securities, 12 months or longer | security	23	0
Number of Securities, Total | security	43	49
Fair Value - Less than 12 months	$ 195,086	$ 497,708
Fair Value - 12 months or longer	230,616	0
Fair Value - Total	425,702	497,708
Gross Unrealized Losses - Less than 12 months	(1,282)	(9,381)
Gross Unrealized Losses - 12 months or longer	(5,701)	0
Gross Unrealized Losses - Total	$ (6,983)	$ (9,381)
Commercial Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months | security	16	8
Number of Securities, 12 months or longer | security	8	0
Number of Securities, Total | security	24	8
Fair Value - Less than 12 months	$ 186,357	$ 125,089
Fair Value - 12 months or longer	115,008	0
Fair Value - Total	301,365	125,089
Gross Unrealized Losses - Less than 12 months	(1,614)	(5,014)
Gross Unrealized Losses - 12 months or longer	(5,067)	0
Gross Unrealized Losses - Total	$ (6,681)	$ (5,014)
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months | security	18	95
Number of Securities, 12 months or longer | security	3	0
Number of Securities, Total | security	21	95
Fair Value - Less than 12 months	$ 9,295	$ 69,331
Fair Value - 12 months or longer	22,144	0
Fair Value - Total	31,439	69,331
Gross Unrealized Losses - Less than 12 months	(69)	(1,537)
Gross Unrealized Losses - 12 months or longer	(806)	0
Gross Unrealized Losses - Total	$ (875)	$ (1,537)
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months | security	1	1
Number of Securities, 12 months or longer | security	0	1
Number of Securities, Total | security	1	2
Fair Value - Less than 12 months	$ 4,475	$ 7,014
Fair Value - 12 months or longer	0	4,113
Fair Value - Total	4,475	11,127
Gross Unrealized Losses - Less than 12 months	(522)	(2)
Gross Unrealized Losses - 12 months or longer	0	(447)
Gross Unrealized Losses - Total	$ (522)	$ (449)
Mutual funds
Schedule of Available-for-sale Securities [Line Items]
Number of Securities, Less than 12 months | security	1	3
Number of Securities, 12 months or longer | security	3	0
Number of Securities, Total | security	4	3
Fair Value - Less than 12 months	$ 8,899	$ 13,058
Fair Value - 12 months or longer	11,579	0
Fair Value - Total	20,478	13,058
Gross Unrealized Losses - Less than 12 months	(101)	(367)
Gross Unrealized Losses - 12 months or longer	(384)	0
Gross Unrealized Losses - Total	$ (485)	$ (367)

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Loans Receivable and Allowance for Loan Losses - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) segment	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Real estate loans:
Loans	$ 11,102,857	$ 10,544,989
Less: deferred loan fees	(282)	(1,657)
Gross loans receivable	11,102,575	10,543,332
Less: allowance for loan losses	(84,541)	(79,343)	$ (76,408)	$ (67,758)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Additions	0	41,271
Loans receivable, net	$ 11,018,034	10,463,989
Number of portfolio segments | segment	4
Real Estate
Real estate loans:
Loans	$ 8,508,222	8,154,570
Real Estate | Real estate-Residential
Real estate loans:
Loans	49,774	57,884
Real Estate | Commercial & industrial
Real estate loans:
Loans	8,142,036	7,842,573
Real Estate | Real estate-Construction
Real estate loans:
Loans	316,412	254,113
Commercial Business
Real estate loans:
Loans	1,780,869	1,832,021
Less: allowance for loan losses	(20,755)	(23,547)
Trade Finance
Real estate loans:
Loans	166,664	154,928
Less: allowance for loan losses	(1,716)	(1,897)
Consumer and other
Real estate loans:
Loans	647,102	403,470
Less: allowance for loan losses	$ (3,388)	$ (2,152)

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Loans Receivable and Allowance for Loan Losses - Accretable Yield Movement Schedule on Acquired Credit Impaired Loans in Center Merger (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 43,611	$ 23,777
Accretion	(21,542)	(15,817)
Changes in expected cash flows	32,933	(5,620)
Balance at end of period	$ 55,002	$ 43,611

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Loans Receivable and Allowance for Loan Losses - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	$ 79,343	$ 76,408	$ 67,758
Provision (credit) for loan losses	17,360	9,000	8,000
Loans charged off	(17,410)	(8,960)	(4,912)
Recoveries of charged offs	5,248	2,895	5,562
Balance, end of period	84,541	79,343	76,408
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment				$ 5,323	$ 7,409
Allowance for loan losses - Collectively evaluated for impairment				67,178	59,804
Allowance for loan losses - Total	79,343	76,408	67,758	84,541	79,343
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment				114,349	140,361
Loans outstanding - Collectively evaluated for impairment				10,791,600	10,131,183
Loans outstanding - Loans acquired with credit deterioration				11,018,034	10,463,989
Total loans outstanding				11,102,857	10,544,989
Loans and Leases Receivable, Other Information
Commitment to lend				836	3,200
(Credit) provision for unfunded loan commitments	(2,358)	179	381
Real Estate
Loans outstsanding:
Total loans outstanding				8,508,222	8,154,570
Commercial Business
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	23,547
Balance, end of period	20,755	23,547
Allowance for loan losses:
Allowance for loan losses - Total	23,547	23,547		20,755	23,547
Loans outstsanding:
Total loans outstanding				1,780,869	1,832,021
Trade Finance
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	1,897
Balance, end of period	1,716	1,897
Allowance for loan losses:
Allowance for loan losses - Total	1,897	1,897		1,716	1,897
Loans outstsanding:
Total loans outstanding				166,664	154,928
Consumer and Other
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	2,152
Balance, end of period	3,388	2,152
Allowance for loan losses:
Allowance for loan losses - Total	2,152	2,152		3,388	2,152
Loans outstsanding:
Total loans outstanding				647,102	403,470
Receivables Acquired with Deteriorated Credit Quality
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	12,130
Balance, end of period	12,040	12,130
Allowance for loan losses:
Allowance for loan losses - Total	12,130	12,130		12,040	12,130
Loans outstsanding:
Loans outstanding - Loans acquired with credit deterioration				196,908	273,445
Legacy
Loans outstsanding:
Total loans outstanding					6,721,566
Legacy | Real Estate
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	38,956	42,829	38,775
Provision (credit) for loan losses	8,524	(4,896)	2,828
Loans charged off	(2,292)	(152)	(558)
Recoveries of charged offs	172	1,175	1,784
Balance, end of period	45,360	38,956	42,829
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment				1,378	1,889
Allowance for loan losses - Collectively evaluated for impairment				43,982	37,067
Allowance for loan losses - Total	38,956	42,829	38,775	45,360	38,956
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment				41,041	74,085
Loans outstanding - Collectively evaluated for impairment				6,172,448	5,271,262
Total loans outstanding				6,213,489	5,345,347
Legacy | Commercial Business
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	23,430	16,332	15,986
Provision (credit) for loan losses	(1,036)	12,928	(577)
Loans charged off	(9,881)	(7,267)	(1,971)
Recoveries of charged offs	4,715	1,437	2,894
Balance, end of period	17,228	23,430	16,332
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment				2,807	4,420
Allowance for loan losses - Collectively evaluated for impairment				14,421	19,010
Allowance for loan losses - Total	23,430	16,332	15,986	17,228	23,430
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment				31,322	34,783
Loans outstanding - Collectively evaluated for impairment				1,459,273	1,079,348
Total loans outstanding				1,490,595	1,114,131
Legacy | Trade Finance
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	1,897	3,592	3,456
Provision (credit) for loan losses	1,825	(1,695)	1,424
Loans charged off	(2,104)	0	(1,288)
Recoveries of charged offs	56	0	0
Balance, end of period	1,674	1,897	3,592
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment				3	864
Allowance for loan losses - Collectively evaluated for impairment				1,671	1,033
Allowance for loan losses - Total	1,897	3,592	3,456	1,674	1,897
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment				3,951	6,029
Loans outstanding - Collectively evaluated for impairment				152,204	75,365
Total loans outstanding				156,155	81,394
Legacy | Consumer and Other
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	2,116	556	427
Provision (credit) for loan losses	2,207	2,229	177
Loans charged off	(943)	(757)	(630)
Recoveries of charged offs	5	88	582
Balance, end of period	3,385	2,116	556
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment				35	50
Allowance for loan losses - Collectively evaluated for impairment				3,350	2,066
Allowance for loan losses - Total	2,116	556	427	3,385	2,116
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment				908	733
Loans outstanding - Collectively evaluated for impairment				477,375	179,961
Total loans outstanding				478,283	180,694
Legacy | Receivables Acquired with Deteriorated Credit Quality | Real Estate
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	0
Balance, end of period	0	0
Allowance for loan losses:
Allowance for loan losses - Total	0	0		0	0
Loans outstsanding:
Loans outstanding - Loans acquired with credit deterioration				0	0
Legacy | Receivables Acquired with Deteriorated Credit Quality | Commercial Business
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	0
Balance, end of period	0	0
Allowance for loan losses:
Allowance for loan losses - Total	0	0		0	0
Loans outstsanding:
Loans outstanding - Loans acquired with credit deterioration				0	0
Legacy | Receivables Acquired with Deteriorated Credit Quality | Trade Finance
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	0
Balance, end of period	0	0
Allowance for loan losses:
Allowance for loan losses - Total	0	0		0	0
Loans outstsanding:
Loans outstanding - Loans acquired with credit deterioration				0	0
Legacy | Receivables Acquired with Deteriorated Credit Quality | Consumer and Other
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	0
Balance, end of period	0	0
Allowance for loan losses:
Allowance for loan losses - Total	0	0		0	0
Loans outstsanding:
Loans outstanding - Loans acquired with credit deterioration				0	0
Acquired
Loans outstsanding:
Total loans outstanding					3,823,423
Acquired | Real Estate
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	12,791	12,823	8,573
Provision (credit) for loan losses	1,341	714	4,270
Loans charged off	(850)	(758)	(183)
Recoveries of charged offs	40	12	163
Balance, end of period	13,322	12,791	12,823
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment				246	113
Allowance for loan losses - Collectively evaluated for impairment				1,036	548
Allowance for loan losses - Total	12,791	12,823	8,573	13,322	12,791
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment				14,239	23,865
Loans outstanding - Collectively evaluated for impairment				2,120,001	2,597,200
Total loans outstanding				2,294,733	2,809,223
Acquired | Commercial Business
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	117	214	485
Provision (credit) for loan losses	4,500	(248)	(117)
Loans charged off	(1,315)	(26)	(271)
Recoveries of charged offs	225	177	117
Balance, end of period	3,527	117	214
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment				854	73
Allowance for loan losses - Collectively evaluated for impairment				2,673	44
Allowance for loan losses - Total	117	214	485	3,527	117
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment				18,733	435
Loans outstanding - Collectively evaluated for impairment				244,980	650,710
Total loans outstanding				290,274	717,890
Acquired | Trade Finance
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	0	0	0
Provision (credit) for loan losses	42	0	0
Loans charged off	0	0	0
Recoveries of charged offs	0	0	0
Balance, end of period	42	0	0
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment				0	0
Allowance for loan losses - Collectively evaluated for impairment				42	0
Allowance for loan losses - Total	0	0	0	42	0
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment				2,984	0
Loans outstanding - Collectively evaluated for impairment				7,525	70,535
Total loans outstanding				10,509	73,534
Acquired | Consumer and Other
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	36	62	56
Provision (credit) for loan losses	(43)	(32)	(5)
Loans charged off	(25)	0	(11)
Recoveries of charged offs	35	6	22
Balance, end of period	3	36	62
Allowance for loan losses:
Allowance for loan losses - Individually evaluated for impairment				0	0
Allowance for loan losses - Collectively evaluated for impairment				3	36
Allowance for loan losses - Total	36	62	$ 56	3	36
Loans outstsanding:
Loans outstanding - Individually evaluated for impairment				1,171	431
Loans outstanding - Collectively evaluated for impairment				157,794	206,802
Total loans outstanding				168,819	222,776
Acquired | Receivables Acquired with Deteriorated Credit Quality | Real Estate
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	12,130
Balance, end of period	12,040	12,130
Allowance for loan losses:
Allowance for loan losses - Total	12,130	12,130		12,040	12,130
Loans outstsanding:
Loans outstanding - Loans acquired with credit deterioration				160,493	188,158
Acquired | Receivables Acquired with Deteriorated Credit Quality | Commercial Business
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	0
Balance, end of period	0	0
Allowance for loan losses:
Allowance for loan losses - Total	0	0		0	0
Loans outstsanding:
Loans outstanding - Loans acquired with credit deterioration				26,561	66,745
Acquired | Receivables Acquired with Deteriorated Credit Quality | Trade Finance
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	0
Balance, end of period	0	0
Allowance for loan losses:
Allowance for loan losses - Total	0	0		0	0
Loans outstsanding:
Loans outstanding - Loans acquired with credit deterioration				0	2,999
Acquired | Receivables Acquired with Deteriorated Credit Quality | Consumer and Other
Allowance for Loan Losses by Portfolio Segment
Balance, beginning of period	0
Balance, end of period	0	0
Allowance for loan losses:
Allowance for loan losses - Total	$ 0	$ 0		0	0
Loans outstsanding:
Loans outstanding - Loans acquired with credit deterioration				$ 9,854	$ 15,543

XML

Loans Receivable and Allowance for Loan Losses - Impaired Financing Receivables (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	$ 31,658	$ 60,758
Recorded Investment, With No Allocated Allowance	82,691	79,603
Allowance on Impaired Loans	(5,323)	(7,409)
Impaired Loans, net of allowance	109,026	132,952
Impaired Financing Receivable, Recorded Investment	114,349	140,361
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	39,604	62,494
Unpaid Contractual Principal Balance, With No Related Allowance	96,817	91,065
Impaired Financing Receivable, Unpaid Principal Balance	136,421	153,559
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	45,077	70,958	$ 70,363
Average Recorded Investment, With No Related Allowance	75,236	65,752	54,873
Average Recorded Investment, Total	120,313	136,710	125,236
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	1,162	2,412	2,965
Interest Income Recognized during Impairment, With No Related Allowance	2,279	2,174	1,702
Interest Income Recognized during Impairment, Total	3,441	4,586	4,667
Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	3,003	2,593
Recorded Investment, With No Allocated Allowance	34,124	22,138
Allowance on Impaired Loans	(1,100)	(186)
Impaired Financing Receivable, Recorded Investment	37,127	24,731
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	4,598	2,930
Unpaid Contractual Principal Balance, With No Related Allowance	39,468	26,118
Impaired Financing Receivable, Unpaid Principal Balance	44,066	29,048
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	2,790	2,677	5,001
Average Recorded Investment, With No Related Allowance	21,959	17,003	16,009
Average Recorded Investment, Total	24,749	19,680	21,010
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	70	30	99
Interest Income Recognized during Impairment, With No Related Allowance	921	641	379
Interest Income Recognized during Impairment, Total	991	671	478
WIthout charge-offs
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	28,614	59,638
Recorded Investment, With No Allocated Allowance	77,533	76,775
With charge-offs
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	3,044	1,120
Recorded Investment, With No Allocated Allowance	5,158	2,828
Real estate-Residential
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	0	0
Recorded Investment, With No Allocated Allowance	0	3,562
Allowance on Impaired Loans	0	0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0	0
Unpaid Contractual Principal Balance, With No Related Allowance	0	3,562
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	0	0
Average Recorded Investment, With No Related Allowance	1,105	712	0
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	0
Interest Income Recognized during Impairment, With No Related Allowance	0	119	0
Real estate-Residential | Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	0	0
Recorded Investment, With No Allocated Allowance	0	679
Allowance on Impaired Loans	0	0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0	0
Unpaid Contractual Principal Balance, With No Related Allowance	0	679
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	0	0
Average Recorded Investment, With No Related Allowance	235	136	0
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	0
Interest Income Recognized during Impairment, With No Related Allowance	0	0	0
Real estate-Construction
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	0	0
Recorded Investment, With No Allocated Allowance	1,300	1,300
Allowance on Impaired Loans	0	0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0	0
Unpaid Contractual Principal Balance, With No Related Allowance	1,441	1,441
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	0	0
Average Recorded Investment, With No Related Allowance	1,611	1,322	1,153
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	0
Interest Income Recognized during Impairment, With No Related Allowance	0	0	0
Real estate-Construction | Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	0	0
Recorded Investment, With No Allocated Allowance	0	0
Allowance on Impaired Loans	0	0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0	0
Unpaid Contractual Principal Balance, With No Related Allowance	0	0
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	0	0
Average Recorded Investment, With No Related Allowance	0	0	0
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	0
Interest Income Recognized during Impairment, With No Related Allowance	0	0	0
Commercial Business
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	18,330	26,543
Recorded Investment, With No Allocated Allowance	31,725	8,675
Allowance on Impaired Loans	(3,661)	(4,493)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	22,757	27,161
Unpaid Contractual Principal Balance, With No Related Allowance	33,207	9,472
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	23,695	32,626	31,790
Average Recorded Investment, With No Related Allowance	16,312	10,559	8,722
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	631	988	998
Interest Income Recognized during Impairment, With No Related Allowance	697	203	345
Commercial Business | Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	1,987	294
Recorded Investment, With No Allocated Allowance	16,746	141
Allowance on Impaired Loans	(854)	(73)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	2,903	339
Unpaid Contractual Principal Balance, With No Related Allowance	16,926	386
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	1,111	448	671
Average Recorded Investment, With No Related Allowance	5,794	580	892
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	47	5	15
Interest Income Recognized during Impairment, With No Related Allowance	182	2	55
Trade Finance
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	3,861	2,111
Recorded Investment, With No Allocated Allowance	3,074	3,918
Allowance on Impaired Loans	(3)	(864)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	3,861	2,156
Unpaid Contractual Principal Balance, With No Related Allowance	3,091	3,918
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	2,842	7,134	6,209
Average Recorded Investment, With No Related Allowance	2,994	1,674	986
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	217	25	527
Interest Income Recognized during Impairment, With No Related Allowance	253	208	0
Trade Finance | Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	0	0
Recorded Investment, With No Allocated Allowance	2,984	0
Allowance on Impaired Loans	0	0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0	0
Unpaid Contractual Principal Balance, With No Related Allowance	3,001	0
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	0	0
Average Recorded Investment, With No Related Allowance	1,274	0	0
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	0
Interest Income Recognized during Impairment, With No Related Allowance	248	0	0
Consumer and Other
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	523	91
Recorded Investment, With No Allocated Allowance	1,556	1,073
Allowance on Impaired Loans	(35)	(50)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	524	91
Unpaid Contractual Principal Balance, With No Related Allowance	1,676	1,136
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	240	289	153
Average Recorded Investment, With No Related Allowance	1,225	1,026	1,177
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	4	4	7
Interest Income Recognized during Impairment, With No Related Allowance	25	29	26
Consumer and Other | Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	0	0
Recorded Investment, With No Allocated Allowance	1,171	431
Allowance on Impaired Loans	0	0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0	0
Unpaid Contractual Principal Balance, With No Related Allowance	1,291	484
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	32	0
Average Recorded Investment, With No Related Allowance	645	453	629
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	0
Interest Income Recognized during Impairment, With No Related Allowance	7	9	7
Real estate-Commercial
Impaired Loans, Recorded Investment
Allowance on Impaired Loans	(1,624)	(2,002)
Real estate-Commercial | Retail
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	532	2,095
Recorded Investment, With No Allocated Allowance	11,792	12,753
Allowance on Impaired Loans	(131)	(90)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	531	2,384
Unpaid Contractual Principal Balance, With No Related Allowance	13,923	13,290
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	1,120	1,788	3,388
Average Recorded Investment, With No Related Allowance	12,288	10,745	10,779
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	0
Interest Income Recognized during Impairment, With No Related Allowance	434	451	464
Real estate-Commercial | Retail | Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	262	1,826
Recorded Investment, With No Allocated Allowance	3,412	3,148
Allowance on Impaired Loans	(126)	(85)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	261	2,114
Unpaid Contractual Principal Balance, With No Related Allowance	4,099	3,214
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	851	1,387	1,835
Average Recorded Investment, With No Related Allowance	2,866	2,496	2,301
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	0
Interest Income Recognized during Impairment, With No Related Allowance	141	152	105
Real estate-Commercial | Hotel & Motel
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	2,931	6,387
Recorded Investment, With No Allocated Allowance	2,841	6,122
Allowance on Impaired Loans	(284)	(337)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	5,090	6,387
Unpaid Contractual Principal Balance, With No Related Allowance	5,288	11,735
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	4,050	3,650	10,512
Average Recorded Investment, With No Related Allowance	7,245	8,275	6,455
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	67	332	230
Interest Income Recognized during Impairment, With No Related Allowance	0	14	93
Real estate-Commercial | Hotel & Motel | Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	85	0
Recorded Investment, With No Allocated Allowance	482	4,767
Allowance on Impaired Loans	(2)	0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	86	0
Unpaid Contractual Principal Balance, With No Related Allowance	1,887	7,171
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	105	0	0
Average Recorded Investment, With No Related Allowance	3,086	5,700	5,889
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	0
Interest Income Recognized during Impairment, With No Related Allowance	0	14	73
Real estate-Commercial | Gas Station & Car Wash
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	0	215
Recorded Investment, With No Allocated Allowance	591	5,043
Allowance on Impaired Loans	0	(41)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0	228
Unpaid Contractual Principal Balance, With No Related Allowance	1,764	7,449
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	43	884	1,542
Average Recorded Investment, With No Related Allowance	3,168	4,817	3,685
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	59
Interest Income Recognized during Impairment, With No Related Allowance	0	39	107
Real estate-Commercial | Gas Station & Car Wash | Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	0	0
Recorded Investment, With No Allocated Allowance	1	1,568
Allowance on Impaired Loans	0	0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	0	0
Unpaid Contractual Principal Balance, With No Related Allowance	28	1,815
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	0	203	1,246
Average Recorded Investment, With No Related Allowance	619	1,506	651
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	59
Interest Income Recognized during Impairment, With No Related Allowance	0	39	64
Real estate-Commercial | Mixed Use
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	312	206
Recorded Investment, With No Allocated Allowance	1,101	7,303
Allowance on Impaired Loans	(4)	(27)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	958	732
Unpaid Contractual Principal Balance, With No Related Allowance	3,490	7,822
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	245	350	498
Average Recorded Investment, With No Related Allowance	3,496	3,284	2,375
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	6	7	9
Interest Income Recognized during Impairment, With No Related Allowance	0	282	51
Real estate-Commercial | Mixed Use | Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	129	136
Recorded Investment, With No Allocated Allowance	152	5,315
Allowance on Impaired Loans	(1)	(2)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	129	136
Unpaid Contractual Principal Balance, With No Related Allowance	2,240	5,551
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	179	280	380
Average Recorded Investment, With No Related Allowance	2,191	1,238	210
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	6	7	9
Interest Income Recognized during Impairment, With No Related Allowance	0	245	13
Real estate-Commercial | Industrial & Warehouse
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	772	530
Recorded Investment, With No Allocated Allowance	8,429	9,673
Allowance on Impaired Loans	(96)	0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	1,482	530
Unpaid Contractual Principal Balance, With No Related Allowance	8,525	9,748
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	1,135	547	3,686
Average Recorded Investment, With No Related Allowance	8,676	10,252	10,186
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	23	25
Interest Income Recognized during Impairment, With No Related Allowance	262	350	254
Real estate-Commercial | Industrial & Warehouse | Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	221	0
Recorded Investment, With No Allocated Allowance	45	66
Allowance on Impaired Loans	(96)	0
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	896	0
Unpaid Contractual Principal Balance, With No Related Allowance	45	66
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	225	0	72
Average Recorded Investment, With No Related Allowance	59	873	1,275
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	0	0	0
Interest Income Recognized during Impairment, With No Related Allowance	3	3	9
Real estate-Commercial | Other
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	4,397	22,580
Recorded Investment, With No Allocated Allowance	20,282	20,181
Allowance on Impaired Loans	(1,109)	(1,507)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	4,401	22,825
Unpaid Contractual Principal Balance, With No Related Allowance	24,412	21,492
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	11,707	23,690	12,585
Average Recorded Investment, With No Related Allowance	17,116	13,086	9,355
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	237	1,033	1,110
Interest Income Recognized during Impairment, With No Related Allowance	608	479	362
Real estate-Commercial | Other | Acquired
Impaired Loans, Recorded Investment
Recorded Investment, With Allocated Allowance	319	337
Recorded Investment, With No Allocated Allowance	9,131	6,023
Allowance on Impaired Loans	(21)	(26)
Impaired Loans, Unpaid Principal Balance
Unpaid Contractual Principal Balance, With Related Allowance	323	341
Unpaid Contractual Principal Balance, With No Related Allowance	9,951	6,752
Impaired Loans, Average Recorded Investment
Average Recorded Investment, With Related Allowance	319	327	797
Average Recorded Investment, With No Related Allowance	5,190	4,021	4,162
Impaired Loans, Interest Income Recognized during Impairment
Interest Income Recognized during Impairment, With Related Allowance	17	18	16
Interest Income Recognized during Impairment, With No Related Allowance	$ 340	$ 177	$ 53

XML

Loans Receivable and Allowance for Loan Losses - Past Due Financing Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	$ 24,360	$ 18,342
Non-accrual loans	46,775	40,074
Total Delinquent loans	71,135	58,416
Small Business Administration Loans in Liquidation Excluded from Nonaccrual Loans	22,100	15,900
Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	18,223	13,278
Non-accrual loans	28,235	28,944
Total Delinquent loans	46,458	42,222
Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	6,137	5,064
Non-accrual loans	18,540	11,130
Total Delinquent loans	24,677	16,194
Real estate-Residential | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
Non-accrual loans	0	0
Total Delinquent loans	0	0
Real estate-Residential | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
Non-accrual loans	0	679
Total Delinquent loans	0	679
Real estate-Commercial | Legacy | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	2,384	480
Non-accrual loans	3,179	3,672
Total Delinquent loans	5,563	4,152
Real estate-Commercial | Legacy | Hotel & Motel
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	2,911	4,973
Non-accrual loans	3,931	1,392
Total Delinquent loans	6,842	6,365
Real estate-Commercial | Legacy | Gas Station & Car Wash
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	956	362
Non-accrual loans	590	3,690
Total Delinquent loans	1,546	4,052
Real estate-Commercial | Legacy | Mixed Use
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	129	0
Non-accrual loans	1,132	1,305
Total Delinquent loans	1,261	1,305
Real estate-Commercial | Legacy | Industrial & Warehouse
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,220	697
Non-accrual loans	3,403	1,922
Total Delinquent loans	4,623	2,619
Real estate-Commercial | Legacy | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,408	2,871
Non-accrual loans	5,689	4,007
Total Delinquent loans	7,097	6,878
Real estate-Commercial | Acquired | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	297	1,611
Non-accrual loans	638	1,871
Total Delinquent loans	935	3,482
Real estate-Commercial | Acquired | Hotel & Motel
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,219	95
Non-accrual loans	568	4,501
Total Delinquent loans	1,787	4,596
Real estate-Commercial | Acquired | Gas Station & Car Wash
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,202	408
Non-accrual loans	1	993
Total Delinquent loans	1,203	1,401
Real estate-Commercial | Acquired | Mixed Use
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	151	0
Non-accrual loans	152	48
Total Delinquent loans	303	48
Real estate-Commercial | Acquired | Industrial & Warehouse
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,068	257
Non-accrual loans	221	0
Total Delinquent loans	1,289	257
Real estate-Commercial | Acquired | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	350
Non-accrual loans	1,389	2,144
Total Delinquent loans	1,389	2,494
Real estate-Construction | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	1,513
Non-accrual loans	1,300	1,300
Total Delinquent loans	1,300	2,813
Real estate-Construction | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
Non-accrual loans	0	0
Total Delinquent loans	0	0
Commercial Business | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,203	1,373
Non-accrual loans	8,540	9,371
Total Delinquent loans	9,743	10,744
Commercial Business | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,243	1,987
Non-accrual loans	14,560	345
Total Delinquent loans	15,803	2,332
Trade Finance | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	500
Non-accrual loans	0	2,056
Total Delinquent loans	0	2,556
Trade Finance | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
Non-accrual loans	0	0
Total Delinquent loans	0	0
Consumer and Other | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	8,012	509
Non-accrual loans	471	229
Total Delinquent loans	8,483	738
Consumer and Other | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	957	356
Non-accrual loans	1,011	549
Total Delinquent loans	1,968	905
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	20,334	10,268
30-59 Days Past Due | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	16,092	6,253
30-59 Days Past Due | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	4,242	4,015
30-59 Days Past Due | Real estate-Residential | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
30-59 Days Past Due | Real estate-Residential | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
30-59 Days Past Due | Real estate-Commercial | Legacy | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	2,384	480
30-59 Days Past Due | Real estate-Commercial | Legacy | Hotel & Motel
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,884	1,836
30-59 Days Past Due | Real estate-Commercial | Legacy | Gas Station & Car Wash
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	956	362
30-59 Days Past Due | Real estate-Commercial | Legacy | Mixed Use
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	129	0
30-59 Days Past Due | Real estate-Commercial | Legacy | Industrial & Warehouse
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,121	0
30-59 Days Past Due | Real estate-Commercial | Legacy | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,408	2,871
30-59 Days Past Due | Real estate-Commercial | Acquired | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	81	1,611
30-59 Days Past Due | Real estate-Commercial | Acquired | Hotel & Motel
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	95
30-59 Days Past Due | Real estate-Commercial | Acquired | Gas Station & Car Wash
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,161	68
30-59 Days Past Due | Real estate-Commercial | Acquired | Mixed Use
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	151	0
30-59 Days Past Due | Real estate-Commercial | Acquired | Industrial & Warehouse
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	804	257
30-59 Days Past Due | Real estate-Commercial | Acquired | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	350
30-59 Days Past Due | Real estate-Construction | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
30-59 Days Past Due | Real estate-Construction | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
30-59 Days Past Due | Commercial Business | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	698	558
30-59 Days Past Due | Commercial Business | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,088	1,303
30-59 Days Past Due | Trade Finance | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
30-59 Days Past Due | Trade Finance | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
30-59 Days Past Due | Consumer and Other | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	7,512	146
30-59 Days Past Due | Consumer and Other | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	957	331
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	3,619	7,769
60-89 Days Past Due | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,724	6,720
60-89 Days Past Due | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,895	1,049
60-89 Days Past Due | Real estate-Residential | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
60-89 Days Past Due | Real estate-Residential | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
60-89 Days Past Due | Real estate-Commercial | Legacy | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
60-89 Days Past Due | Real estate-Commercial | Legacy | Hotel & Motel
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,027	3,137
60-89 Days Past Due | Real estate-Commercial | Legacy | Gas Station & Car Wash
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
60-89 Days Past Due | Real estate-Commercial | Legacy | Mixed Use
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
60-89 Days Past Due | Real estate-Commercial | Legacy | Industrial & Warehouse
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	99	697
60-89 Days Past Due | Real estate-Commercial | Legacy | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
60-89 Days Past Due | Real estate-Commercial | Acquired | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	216	0
60-89 Days Past Due | Real estate-Commercial | Acquired | Hotel & Motel
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	1,219	0
60-89 Days Past Due | Real estate-Commercial | Acquired | Gas Station & Car Wash
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	41	340
60-89 Days Past Due | Real estate-Commercial | Acquired | Mixed Use
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
60-89 Days Past Due | Real estate-Commercial | Acquired | Industrial & Warehouse
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	264	0
60-89 Days Past Due | Real estate-Commercial | Acquired | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
60-89 Days Past Due | Real estate-Construction | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	1,513
60-89 Days Past Due | Real estate-Construction | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
60-89 Days Past Due | Commercial Business | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	505	815
60-89 Days Past Due | Commercial Business | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	155	684
60-89 Days Past Due | Trade Finance | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	500
60-89 Days Past Due | Trade Finance | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
60-89 Days Past Due | Consumer and Other | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	93	58
60-89 Days Past Due | Consumer and Other | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	25
90 or More Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	407	305
90 or More Days Past Due | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	407	305
90 or More Days Past Due | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Residential | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Residential | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Legacy | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Legacy | Hotel & Motel
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Legacy | Gas Station & Car Wash
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Legacy | Mixed Use
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Legacy | Industrial & Warehouse
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Legacy | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Acquired | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Acquired | Hotel & Motel
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Acquired | Gas Station & Car Wash
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Acquired | Mixed Use
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Acquired | Industrial & Warehouse
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Commercial | Acquired | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Construction | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Real estate-Construction | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Commercial Business | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Commercial Business | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Trade Finance | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Trade Finance | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	0	0
90 or More Days Past Due | Consumer and Other | Legacy
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	407	305
90 or More Days Past Due | Consumer and Other | Acquired
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due and Accruing Loans	$ 0	$ 0

XML

Loans Receivable and Allowance for Loan Losses - Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 11,102,857	$ 10,544,989
Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans		6,721,566
Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans		3,823,423
Real estate-Residential
Financing Receivable, Recorded Investment [Line Items]
Loans	49,774	57,884
Real estate-Residential | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans		37,389
Real estate-Residential | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans		20,495
Real estate-Commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	8,142,036	7,842,573
Real estate-Commercial | Legacy | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans		1,337,811
Real estate-Commercial | Legacy | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans		1,209,498
Real estate-Commercial | Legacy | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans		654,231
Real estate-Commercial | Legacy | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans		376,779
Real estate-Commercial | Legacy | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans		522,103
Real estate-Commercial | Legacy | Other
Financing Receivable, Recorded Investment [Line Items]
Loans		1,032,261
Real estate-Commercial | Acquired | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans		803,435
Real estate-Commercial | Acquired | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans		352,048
Real estate-Commercial | Acquired | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans		269,154
Real estate-Commercial | Acquired | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans		134,261
Real estate-Commercial | Acquired | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans		362,222
Real estate-Commercial | Acquired | Other
Financing Receivable, Recorded Investment [Line Items]
Loans		788,770
Real estate-Construction
Financing Receivable, Recorded Investment [Line Items]
Loans	316,412	254,113
Real estate-Construction | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans		175,275
Real estate-Construction | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans		78,838
Real Estate
Financing Receivable, Recorded Investment [Line Items]
Loans	8,508,222	8,154,570
Real Estate | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	6,213,489	5,345,347
Real Estate | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	2,294,733	2,809,223
Commercial Business
Financing Receivable, Recorded Investment [Line Items]
Loans	1,780,869	1,832,021
Commercial Business | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	1,490,595	1,114,131
Commercial Business | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	290,274	717,890
Trade Finance
Financing Receivable, Recorded Investment [Line Items]
Loans	166,664	154,928
Trade Finance | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	156,155	81,394
Trade Finance | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	10,509	73,534
Consumer and Other
Financing Receivable, Recorded Investment [Line Items]
Loans	647,102	403,470
Consumer and Other | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	478,283	180,694
Consumer and Other | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	168,819	222,776
Pass
Financing Receivable, Recorded Investment [Line Items]
Loans	10,534,382	9,988,278
Pass | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	8,007,314	6,430,967
Pass | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	2,527,068	3,557,311
Pass | Real estate-Residential | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	33,557	34,283
Pass | Real estate-Residential | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	13,369	18,007
Pass | Real estate-Commercial | Legacy | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	1,640,809	1,303,452
Pass | Real estate-Commercial | Legacy | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	1,224,597	1,187,709
Pass | Real estate-Commercial | Legacy | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	737,485	643,282
Pass | Real estate-Commercial | Legacy | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	421,755	375,312
Pass | Real estate-Commercial | Legacy | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	577,344	478,528
Pass | Real estate-Commercial | Legacy | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	1,133,188	969,024
Pass | Real estate-Commercial | Acquired | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	630,555	772,465
Pass | Real estate-Commercial | Acquired | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	275,191	328,396
Pass | Real estate-Commercial | Acquired | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	194,063	249,379
Pass | Real estate-Commercial | Acquired | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	94,864	118,643
Pass | Real estate-Commercial | Acquired | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	250,049	321,040
Pass | Real estate-Commercial | Acquired | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	568,545	736,385
Pass | Real estate-Construction | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	219,583	159,230
Pass | Real estate-Construction | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	93,777	78,838
Pass | Commercial Business | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	1,389,043	1,032,232
Pass | Commercial Business | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	236,705	649,186
Pass | Trade Finance | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	152,583	68,051
Pass | Trade Finance | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	7,455	70,535
Pass | Consumer and Other | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	477,370	179,864
Pass | Consumer and Other | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	162,495	214,437
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans	214,891	243,656
Special Mention | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	151,413	127,562
Special Mention | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	63,478	116,094
Special Mention | Real estate-Residential | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	1,147	223
Special Mention | Real estate-Residential | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	262	1,809
Special Mention | Real estate-Commercial | Legacy | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	32,723	18,929
Special Mention | Real estate-Commercial | Legacy | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	19,358	12,763
Special Mention | Real estate-Commercial | Legacy | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	9,013	7,259
Special Mention | Real estate-Commercial | Legacy | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	4,581	0
Special Mention | Real estate-Commercial | Legacy | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	16,716	29,830
Special Mention | Real estate-Commercial | Legacy | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	30,030	22,220
Special Mention | Real estate-Commercial | Acquired | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	6,921	9,860
Special Mention | Real estate-Commercial | Acquired | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	4,247	5,419
Special Mention | Real estate-Commercial | Acquired | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	2,872	8,437
Special Mention | Real estate-Commercial | Acquired | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	5,725	3,105
Special Mention | Real estate-Commercial | Acquired | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	14,973	31,819
Special Mention | Real estate-Commercial | Acquired | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	19,848	23,286
Special Mention | Real estate-Construction | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	0	14,745
Special Mention | Real estate-Construction | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Special Mention | Commercial Business | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	35,640	15,919
Special Mention | Commercial Business | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	8,593	31,340
Special Mention | Trade Finance | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	2,200	5,673
Special Mention | Trade Finance | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	0	61
Special Mention | Consumer and Other | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	5	1
Special Mention | Consumer and Other | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	37	958
Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans	353,222	311,106
Substandard | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	179,795	162,942
Substandard | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	173,427	148,164
Substandard | Real estate-Residential | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	1,439	2,883
Substandard | Real estate-Residential | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	0	679
Substandard | Real estate-Commercial | Legacy | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	17,856	15,430
Substandard | Real estate-Commercial | Legacy | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	8,877	9,026
Substandard | Real estate-Commercial | Legacy | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	590	3,690
Substandard | Real estate-Commercial | Legacy | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	1,477	1,467
Substandard | Real estate-Commercial | Legacy | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	24,317	13,745
Substandard | Real estate-Commercial | Legacy | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	53,995	41,017
Substandard | Real estate-Commercial | Acquired | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	20,797	21,110
Substandard | Real estate-Commercial | Acquired | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	24,987	18,233
Substandard | Real estate-Commercial | Acquired | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	8,992	11,338
Substandard | Real estate-Commercial | Acquired | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	14,738	12,505
Substandard | Real estate-Commercial | Acquired | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	16,358	9,048
Substandard | Real estate-Commercial | Acquired | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	33,335	29,099
Substandard | Real estate-Construction | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	3,052	1,300
Substandard | Real estate-Construction | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Substandard | Commercial Business | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	65,912	65,885
Substandard | Commercial Business | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	44,964	37,265
Substandard | Trade Finance | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	1,372	7,670
Substandard | Trade Finance | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	3,054	2,938
Substandard | Consumer and Other | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	908	829
Substandard | Consumer and Other | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	6,202	5,949
Doubtful/ Loss
Financing Receivable, Recorded Investment [Line Items]
Loans	362	1,949
Doubtful/ Loss | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	0	95
Doubtful/ Loss | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	362	1,854
Doubtful/ Loss | Real estate-Residential | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Residential | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Commercial | Legacy | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Commercial | Legacy | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Commercial | Legacy | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Commercial | Legacy | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Commercial | Legacy | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Commercial | Legacy | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Commercial | Acquired | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Commercial | Acquired | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Commercial | Acquired | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Commercial | Acquired | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	0	8
Doubtful/ Loss | Real estate-Commercial | Acquired | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	265	315
Doubtful/ Loss | Real estate-Commercial | Acquired | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Construction | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Real estate-Construction | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Commercial Business | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	0	95
Doubtful/ Loss | Commercial Business | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	12	99
Doubtful/ Loss | Trade Finance | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Trade Finance | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Consumer and Other | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful/ Loss | Consumer and Other | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	85	$ 1,432
Non Pass
Financing Receivable, Recorded Investment [Line Items]
Loans	11,102,857
Non Pass | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	8,338,522
Non Pass | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	2,764,335
Non Pass | Real estate-Residential | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	36,143
Non Pass | Real estate-Residential | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	13,631
Non Pass | Real estate-Commercial | Legacy | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	1,691,388
Non Pass | Real estate-Commercial | Legacy | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	1,252,832
Non Pass | Real estate-Commercial | Legacy | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	747,088
Non Pass | Real estate-Commercial | Legacy | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	427,813
Non Pass | Real estate-Commercial | Legacy | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	618,377
Non Pass | Real estate-Commercial | Legacy | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	1,217,213
Non Pass | Real estate-Commercial | Acquired | Retail
Financing Receivable, Recorded Investment [Line Items]
Loans	658,273
Non Pass | Real estate-Commercial | Acquired | Hotel & Motel
Financing Receivable, Recorded Investment [Line Items]
Loans	304,425
Non Pass | Real estate-Commercial | Acquired | Gas Station & Car Wash
Financing Receivable, Recorded Investment [Line Items]
Loans	205,927
Non Pass | Real estate-Commercial | Acquired | Mixed Use
Financing Receivable, Recorded Investment [Line Items]
Loans	115,327
Non Pass | Real estate-Commercial | Acquired | Industrial & Warehouse
Financing Receivable, Recorded Investment [Line Items]
Loans	281,645
Non Pass | Real estate-Commercial | Acquired | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	621,728
Non Pass | Real estate-Construction | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	222,635
Non Pass | Real estate-Construction | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	93,777
Non Pass | Commercial Business | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	1,490,595
Non Pass | Commercial Business | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	290,274
Non Pass | Trade Finance | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	156,155
Non Pass | Trade Finance | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	10,509
Non Pass | Consumer and Other | Legacy
Financing Receivable, Recorded Investment [Line Items]
Loans	478,283
Non Pass | Consumer and Other | Acquired
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 168,819

XML

Loans Receivable and Allowance for Loan Losses - Loans Held For Investment - Sales or Reclassification to Held for Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Sales or reclassification to held for sale	$ 429	$ 11,885
Real estate-Commercial
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Sales or reclassification to held for sale	429	5,920
Real estate-Construction
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Sales or reclassification to held for sale	0	0
Commercial Business
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Sales or reclassification to held for sale	0	3,457
Consumer
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Sales or reclassification to held for sale	$ 0	$ 2,508

XML

Loans Receivable and Allowance for Loan Losses - Allowance for Loans, by Portfolio Segment and Impairment Method (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired loans, gross carrying value	$ 114,349	$ 140,361
Specific allowance	$ 5,323	$ 7,409
Loss coverage ratio	4.66%	5.28%
Non-impaired loans	$ 10,988,508	$ 10,404,628
General allowance	$ 79,218	$ 71,934
Loss coverage ratio	0.72%	0.69%
Total loans outstanding	$ 11,102,857	$ 10,544,989
Allowance for loan losses - Total	$ 84,541	$ 79,343	$ 76,408	$ 67,758
Loss coverage ratio	0.76%	0.75%
Real estate-Residential
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired loans, gross carrying value	$ 0	$ 3,562
Specific allowance	0	0
Non-impaired loans	49,774	54,322
General allowance	$ 88	$ 209
Loss coverage ratio	0.18%	0.38%
Total loans outstanding	$ 49,774	$ 57,884
Allowance for loan losses - Total	$ 88	$ 209
Loss coverage ratio	0.18%	0.36%
Real estate-Commercial
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired loans, gross carrying value	$ 53,980	$ 93,088
Specific allowance	$ 1,624	$ 2,002
Loss coverage ratio	3.01%	2.15%
Non-impaired loans	$ 8,088,056	$ 7,749,485
General allowance	$ 56,040	$ 47,915
Loss coverage ratio	0.69%	0.62%
Total loans outstanding	$ 8,142,036	$ 7,842,573
Allowance for loan losses - Total	$ 57,664	$ 49,917
Loss coverage ratio	0.71%	0.64%
Real estate-Construction
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired loans, gross carrying value	$ 1,300	$ 1,300
Specific allowance	0	0
Non-impaired loans	315,112	252,813
General allowance	$ 930	$ 1,621
Loss coverage ratio	0.30%	0.64%
Total loans outstanding	$ 316,412	$ 254,113
Allowance for loan losses - Total	$ 930	$ 1,621
Loss coverage ratio	0.29%	0.64%
Commercial Business
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired loans, gross carrying value	$ 50,055	$ 35,218
Specific allowance	$ 3,661	$ 4,493
Loss coverage ratio	7.31%	12.76%
Non-impaired loans	$ 1,730,814	$ 1,796,803
General allowance	$ 17,094	$ 19,054
Loss coverage ratio	0.99%	1.06%
Total loans outstanding	$ 1,780,869	$ 1,832,021
Allowance for loan losses - Total	$ 20,755	$ 23,547
Loss coverage ratio	1.17%	1.29%
Trade finance
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired loans, gross carrying value	$ 6,935	$ 6,029
Specific allowance	$ 3	$ 864
Loss coverage ratio	0.04%	14.33%
Non-impaired loans	$ 159,729	$ 148,899
General allowance	$ 1,713	$ 1,033
Loss coverage ratio	1.07%	0.69%
Total loans outstanding	$ 166,664	$ 154,928
Allowance for loan losses - Total	$ 1,716	$ 1,897
Loss coverage ratio	1.03%	1.22%
Consumer and Other
Loans by Portfolio Segment and Impairment Method [Abstract]
Impaired loans, gross carrying value	$ 2,079	$ 1,164
Specific allowance	$ 35	$ 50
Loss coverage ratio	1.68%	4.30%
Non-impaired loans	$ 645,023	$ 402,306
General allowance	$ 3,353	$ 2,102
Loss coverage ratio	0.52%	0.52%
Total loans outstanding	$ 647,102	$ 403,470
Allowance for loan losses - Total	$ 3,388	$ 2,152
Loss coverage ratio	0.52%	0.53%
Real Estate
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	$ 8,508,222	$ 8,154,570
Legacy
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding		6,721,566
Legacy | Real estate-Residential
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding		37,389
Legacy | Real estate-Construction
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding		175,275
Legacy | Commercial Business
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	1,490,595	1,114,131
Allowance for loan losses - Total	17,228	23,430	16,332	15,986
Legacy | Trade finance
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	156,155	81,394
Allowance for loan losses - Total	1,674	1,897	3,592	3,456
Legacy | Consumer and Other
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	478,283	180,694
Allowance for loan losses - Total	3,385	2,116	556	427
Legacy | Real Estate
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	6,213,489	5,345,347
Allowance for loan losses - Total	45,360	38,956	42,829	38,775
Acquired
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	1,100	186
Total loans outstanding		3,823,423
Acquired | Real estate-Residential
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	0	0
Total loans outstanding		20,495
Acquired | Real estate-Construction
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	0	0
Total loans outstanding		78,838
Acquired | Commercial Business
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	854	73
Total loans outstanding	290,274	717,890
Allowance for loan losses - Total	3,527	117	214	485
Acquired | Trade finance
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	0	0
Total loans outstanding	10,509	73,534
Allowance for loan losses - Total	42	0	0	0
Acquired | Consumer and Other
Loans by Portfolio Segment and Impairment Method [Abstract]
Specific allowance	0	0
Total loans outstanding	168,819	222,776
Allowance for loan losses - Total	3	36	62	56
Acquired | Real Estate
Loans by Portfolio Segment and Impairment Method [Abstract]
Total loans outstanding	2,294,733	2,809,223
Allowance for loan losses - Total	$ 13,322	$ 12,791	$ 12,823	$ 8,573

XML

Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings on Financing Receivables (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) loan	Dec. 31, 2016 USD ($) loan	Dec. 31, 2015 USD ($) loan
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	$ 78,490	$ 70,870	$ 72,235
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	33	19	34
Pre-Modification	$ 27,375	$ 15,406	$ 20,970
Post-Modification	$ 27,375	$ 15,699	$ 19,403
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	5	6	9
Balance	$ 3,677	$ 616	$ 2,789
Specific reserves	1,400	1,200	2,900
Specific reserves for the TDRs	60	371	303
Specific reserves allocated to TDRs	4,800	5,300	5,700
Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	26,167	22,521	18,280
Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	44,692	33,641	38,210
Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	7,631	14,708	15,745
Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
TDR on accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	67,250	48,874	47,984
TDR on accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	22,926	16,387	11,979
TDR on accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	37,794	23,911	27,512
TDR on accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	6,530	8,576	8,493
TDR on accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
TDR on non-accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	11,240	21,996	24,251
TDR on non-accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	3,241	6,134	6,301
TDR on non-accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	6,898	9,730	10,698
TDR on non-accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	1,101	6,132	7,252
TDR on non-accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	$ 0	$ 0	$ 0
Real estate-Commercial | TDR on accrual
Financing Receivable, Modifications [Line Items]
Number of TDRs on accrual status | loan	24	20	24
Commercial Business | TDR on accrual
Financing Receivable, Modifications [Line Items]
Number of TDRs on accrual status | loan	27	23	28
Consumer | TDR on accrual
Financing Receivable, Modifications [Line Items]
Number of TDRs on accrual status | loan	56	19	4
Real Estate | Real estate-Commercial | TDR on accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	$ 32,762	$ 25,054	$ 22,828
Real Estate | Real estate-Commercial | TDR on accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	22,550	16,358	11,604
Real Estate | Real estate-Commercial | TDR on accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	4,768	1,840	4,009
Real Estate | Real estate-Commercial | TDR on accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	5,444	6,856	7,215
Real Estate | Real estate-Commercial | TDR on accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Real Estate | Real estate-Commercial | TDR on non-accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	5,690	11,320	11,919
Real Estate | Real estate-Commercial | TDR on non-accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	3,071	4,417	3,891
Real Estate | Real estate-Commercial | TDR on non-accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	1,536	1,313	1,583
Real Estate | Real estate-Commercial | TDR on non-accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	1,083	5,590	6,445
Real Estate | Real estate-Commercial | TDR on non-accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Commercial Business | TDR on accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	26,956	19,165	19,845
Commercial Business | TDR on accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	376	29	375
Commercial Business | TDR on accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	25,584	17,471	18,192
Commercial Business | TDR on accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	996	1,665	1,278
Commercial Business | TDR on accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Commercial Business | TDR on non-accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	5,452	8,234	9,869
Commercial Business | TDR on non-accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	170	1,717	2,410
Commercial Business | TDR on non-accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	5,264	6,130	6,818
Commercial Business | TDR on non-accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	18	387	641
Commercial Business | TDR on non-accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Commercial Business | Commercial Business | TDR on accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	27,000
Trade Finance and Other | TDR on accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	7,532	4,655	5,311
Trade Finance and Other | TDR on accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Trade Finance and Other | TDR on accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	7,442	4,600	5,311
Trade Finance and Other | TDR on accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	90	55	0
Trade Finance and Other | TDR on accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Trade Finance and Other | TDR on non-accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	98	2,442	2,463
Trade Finance and Other | TDR on non-accrual | Payment concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Trade Finance and Other | TDR on non-accrual | Maturity/ Amortization concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	98	2,287	2,297
Trade Finance and Other | TDR on non-accrual | Rate concession
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	155	166
Trade Finance and Other | TDR on non-accrual | Principal forgiveness
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	0	0	0
Consumer and Other | Consumer | TDR on accrual
Financing Receivable, Modifications [Line Items]
Troubled debt restructured	$ 7,500	$ 4,700	$ 5,300
Legacy
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	18	16	29
Pre-Modification	$ 11,098	$ 13,986	$ 20,374
Post-Modification	$ 11,098	$ 14,328	$ 18,870
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	2	4	7
Balance	$ 178	$ 580	$ 2,622
Charge offs	$ 0	$ 0	$ 0
Subsequent default, number of loans | loan	2	4	7
Legacy | Real Estate | Retail
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	0	0	0
Legacy | Real Estate | Hotel & Motel
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	0	0	0
Balance		$ 0	$ 0
Legacy | Real Estate | Gas Station & Car Wash
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	0	0	1
Balance		$ 0	$ 121
Legacy | Real Estate | Mixed Use
Financing Receivable, Modifications [Line Items]
Number of TDRs on accrual status | loan	0	0	1
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 0	$ 0	$ 103
Legacy | Real Estate | Industrial & Warehouse
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	0	0	0
Balance	$ 0
Legacy | Real Estate | Other
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	0	0	1
Legacy | Real Estate | Payment concession
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Subsequent default, number of loans | loan			1
Subsequent default, recorded investment			$ 121
Legacy | Real Estate | Payment concession | Hotel & Motel
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance	$ 0
Legacy | Real Estate | Payment concession | Gas Station & Car Wash
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance	0
Legacy | Real Estate | Payment concession | Industrial & Warehouse
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance		$ 0	0
Legacy | Real Estate | Payment concession | Other
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance		0	$ 307
Legacy | Real Estate | Maturity/ Amortization concession
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Subsequent default, number of loans | loan			2
Subsequent default, recorded investment			$ 410
Legacy | Real Estate | Maturity/ Amortization concession | Retail
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance	0	$ 0	$ 0
Legacy | Real Estate | Rate concession | Other
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance	$ 0
Legacy | Real Estate | Real estate-Residential
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	0	0
Pre-Modification	$ 0	$ 0	$ 0
Post-Modification	$ 0	$ 0	$ 0
Legacy | Real Estate | Real estate-Commercial | Retail
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	2	0	2
Pre-Modification	$ 1,082	$ 0	$ 750
Post-Modification	$ 1,082	$ 0	$ 733
Legacy | Real Estate | Real estate-Commercial | Hotel & Motel
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	1	0	0
Pre-Modification	$ 1,044	$ 0	$ 0
Post-Modification	$ 1,044	$ 0	$ 0
Legacy | Real Estate | Real estate-Commercial | Gas Station & Car Wash
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	0	2
Pre-Modification	$ 0	$ 0	$ 383
Post-Modification	$ 0	$ 0	$ 351
Legacy | Real Estate | Real estate-Commercial | Mixed Use
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	0	2
Pre-Modification	$ 0	$ 0	$ 437
Post-Modification	$ 0	$ 0	$ 407
Legacy | Real Estate | Real estate-Commercial | Industrial & Warehouse
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	1	0	0
Pre-Modification	$ 465	$ 0	$ 0
Post-Modification	$ 465	$ 0	$ 0
Legacy | Real Estate | Real estate-Commercial | Other
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	3	2
Pre-Modification	$ 0	$ 1,675	$ 1,762
Post-Modification	$ 0	$ 6,824	$ 1,700
Legacy | Real Estate | Real estate-Construction
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	0	0
Pre-Modification	$ 0	$ 0	$ 0
Post-Modification	$ 0	$ 0	$ 0
Legacy | Commercial Business
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	2	4	4
Balance		$ 580	$ 2,091
Legacy | Commercial Business | Payment concession
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Subsequent default, number of loans | loan	1	3	4
Subsequent default, recorded investment	$ 40	$ 490	$ 2,100
Legacy | Commercial Business | Maturity/ Amortization concession
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance	$ 178
Subsequent default, number of loans | loan	1	1
Subsequent default, recorded investment	$ 138	$ 90
Legacy | Commercial Business | Commercial Business
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	14	12	18
Pre-Modification	$ 8,507	$ 12,311	$ 9,171
Post-Modification	$ 8,507	$ 7,413	$ 13,234
Legacy | Trade Finance and Other | Trade Finance
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	0	2
Pre-Modification	$ 0	$ 0	$ 7,623
Post-Modification	$ 0	$ 0	$ 2,208
Legacy | Consumer and Other
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	1	1
Pre-Modification	$ 0	$ 0	$ 248
Post-Modification	$ 0	$ 91	$ 237
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	0	0	0
Legacy | Consumer and Other | Maturity/ Amortization concession
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance	$ 0	$ 0	$ 0
Acquired
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	15	3	5
Pre-Modification	$ 16,277	$ 1,420	$ 596
Post-Modification	$ 16,277	$ 1,371	$ 533
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	3	2	2
Balance	$ 3,499	$ 36	$ 167
Charge offs	$ 0	$ 0	$ 0
Subsequent default, number of loans | loan	3	2	2
Acquired | Real estate-Construction
Troubled Debt Restructuring, By Loan Class
Post-Modification			$ 0
Acquired | Real Estate | Retail
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	0	0	0
Balance	$ 0	$ 0	$ 0
Acquired | Real Estate | Hotel & Motel
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	1	0	0
Acquired | Real Estate | Gas Station & Car Wash
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	0	0	0
Acquired | Real Estate | Mixed Use
Financing Receivable, Modifications [Line Items]
Number of TDRs on accrual status | loan	0	0	1
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 0	$ 0	$ 63
Acquired | Real Estate | Industrial & Warehouse
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	0	0	0
Balance	$ 0	$ 0	$ 0
Acquired | Real Estate | Other
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	1	0	0
Balance	$ 2,977	$ 0	$ 0
Acquired | Real Estate | Payment concession
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Subsequent default, number of loans | loan			1
Subsequent default, recorded investment			$ 63
Acquired | Real Estate | Rate concession | Hotel & Motel
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance	482	0	0
Acquired | Real Estate | Rate concession | Gas Station & Car Wash
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance	$ 0	$ 0	$ 0
Acquired | Real Estate | Real estate-Residential
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	0	0
Pre-Modification	$ 0	$ 0	$ 0
Post-Modification	$ 0	$ 0	$ 0
Acquired | Real Estate | Real estate-Commercial | Retail
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	3	1	0
Pre-Modification	$ 1,642	$ 1,377	$ 0
Post-Modification	$ 1,642	$ 1,335	$ 0
Acquired | Real Estate | Real estate-Commercial | Hotel & Motel
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	1	0	0
Pre-Modification	$ 482	$ 0	$ 0
Post-Modification	$ 482	$ 0	$ 0
Acquired | Real Estate | Real estate-Commercial | Gas Station & Car Wash
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	0	0
Pre-Modification	$ 0	$ 0	$ 0
Post-Modification	$ 0	$ 0	$ 0
Acquired | Real Estate | Real estate-Commercial | Mixed Use
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	0	3
Pre-Modification	$ 0	$ 0	$ 425
Post-Modification	$ 0	$ 0	$ 416
Acquired | Real Estate | Real estate-Commercial | Industrial & Warehouse
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	0	0
Pre-Modification	$ 0	$ 0	$ 0
Post-Modification	$ 0	$ 0	$ 0
Acquired | Real Estate | Real estate-Commercial | Other
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	2	0	0
Pre-Modification	$ 6,946	$ 0	$ 0
Post-Modification	$ 6,946	$ 0	$ 0
Acquired | Real Estate | Real estate-Construction
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	0	0
Pre-Modification	$ 0	$ 0	$ 0
Post-Modification	$ 0	$ 0
Acquired | Commercial Business
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	1	1	0
Acquired | Commercial Business | Payment concession
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Subsequent default, number of loans | loan	1	1
Subsequent default, recorded investment	$ 40	$ 11
Acquired | Commercial Business | Payment Concession And Rate Concession
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance	$ 40	$ 11	$ 0
Acquired | Commercial Business | Commercial Business
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	8	1	1
Pre-Modification	$ 4,224	$ 13	$ 56
Post-Modification	$ 4,224	$ 11	$ 13
Acquired | Trade Finance and Other | Trade Finance
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	1	0	0
Pre-Modification	$ 2,983	$ 0	$ 0
Post-Modification	$ 2,983	$ 0	$ 0
Acquired | Consumer and Other
Troubled Debt Restructuring, By Loan Class
Number of Loans | loan	0	1	1
Pre-Modification	$ 0	$ 30	$ 115
Post-Modification	$ 0	$ 25	$ 104
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Number of Loans | loan	0	1	1
Acquired | Consumer and Other | Maturity/ Amortization concession
Troubled Debt Restructuring, By Loan Class, Modified And Subsequent Payment Default
Balance	$ 0	$ 25	$ 104
Subsequent default, number of loans | loan	2	1	1
Subsequent default, recorded investment	$ 3,500	$ 25	$ 104

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Loans Receivable and Allowance for Loan Losses - Related Parties (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Related party loans outstanding	$ 41.0	$ 42.8
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Related party loans outstanding	40.0	40.7
Commercial Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Related party loans outstanding	$ 1.0	$ 2.1

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Goodwill and Other Intangibles Assets - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jul. 29, 2016
Goodwill [Line Items]
Goodwill	$ 464,450				$ 462,997
Wilshire Bancorp, Inc
Goodwill [Line Items]
Adjustment to deferred tax assets acquired	(1,400)	$ 475	$ 475	$ 978	$ (1,400)
Goodwill	$ 359,000					$ 359,050

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Goodwill and Other Intangibles Assets - Intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 25,605	$ 25,605
Accumulated Amortization	(9,082)	(6,379)
Estimated future amortization expense for identifiable intangible assets:
2018	2,500
2019	2,200
2020	2,100
2021	2,000
2022	1,900
Core deposits
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 2,700	1,700
Center Financial Corporation acquisition | Core deposits
Finite-Lived Intangible Assets [Line Items]
Amortization period	7 years
Gross Carrying Amount	$ 4,100	4,100
Accumulated Amortization	$ (3,966)	(3,685)
Pacific International Bancorp, Inc. acquisition | Core deposits
Finite-Lived Intangible Assets [Line Items]
Amortization period	7 years
Gross Carrying Amount	$ 604	604
Accumulated Amortization	$ (534)	(467)
Foster Bankshares Inc acquisition | Core deposits
Finite-Lived Intangible Assets [Line Items]
Amortization period	10 years
Gross Carrying Amount	$ 2,763	2,763
Accumulated Amortization	$ (1,636)	(1,344)
Wilshire Bancorp, Inc | Core deposits
Finite-Lived Intangible Assets [Line Items]
Amortization period	10 years
Gross Carrying Amount	$ 18,138	18,138
Accumulated Amortization	$ (2,946)	$ (883)

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Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 95,731	$ 87,931
Premises and equipment, accumulated depreciation and amortization	(39,017)	(32,615)
Total premises and equipment, net	56,714	55,316
Proceeds from sales of premises and equipment	4,900
Gain on sale of properties	808
Depreciation	9,300	8,100	$ 7,000
Land
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	11,244	13,723
Building and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	23,127	21,315
Furniture, fixtures, and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	25,953	23,597
Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	27,018	22,494
Software/License
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 8,389	$ 6,802

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Deposits - Time deposit maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deposits Disclosure [Line Items]
Time deposits of more than $250,000	$ 1,279,108	$ 1,077,024
Carrying values of securities pledged as collateral	359,200	382,100
Scheduled maturities for time deposits:
2018	3,855,966
2019	376,108
2020	17,386
2021	21,054
2022 and thereafter	4,149
Time deposits	4,274,663
California State Treasurer
Deposits Disclosure [Line Items]
Time deposits of more than $250,000	$ 300,000
Required eligible collateral pledge on outstanding deposits, minimum percentage	110.00%
Carrying values of securities pledged as collateral	$ 337,700	$ 371,600

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Deposits - Time deposit maturities of $100,000 and $250,000 or more (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Amount $250,000 or more
Three months or less	$ 249,568
Over three months through six months	473,313
Over six months through twelve months	493,054
Over twelve months	63,173
Time deposits of more than $250,000	$ 1,279,108	$ 1,077,024

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Deposits - Components of interest expense and other information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Banking and Thrift [Abstract]
Money market and other	$ 31,856	$ 21,136	$ 12,430
Savings deposits	1,354	1,282	1,670
Time deposits	41,692	25,673	19,312
Interest on deposits	$ 74,902	$ 48,091	$ 33,412

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Deposits - Brokered Deposits (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Interest-bearing Domestic Deposit, Brokered	$ 797.0	$ 724.7
Money Market Funds [Member]
Interest-bearing Domestic Deposit, Brokered	258.5	303.7
Certificates of Deposit [Member]
Interest-bearing Domestic Deposit, Brokered	$ 538.5	$ 421.0

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Borrowings - Narrative (Details) - USD ($)	3 Months Ended
	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Jul. 29, 2016
Debt Instrument [Line Items]
Percent of assets		25.00%
Maximum amount available		$ 3,540,000,000	$ 3,380,000,000
Percent outstanding advances		100.00%
Unsecured credit facility, maximum borrowing capacity		$ 91,000,000
Federal Home Loan Bank Advances		1,157,693,000	754,290,000
Unused funds		2,320,000,000
Federal funds purchased		69,900,000	0
Federal Home Loan Bank Advances And Federal Funds Purchased		1,230,000,000
Advances from Federal Home Loan Banks		$ 1,227,593,000	754,300,000
Percent of qualifying assets		95.00%
Mortgage loans on real estate
Debt Instrument [Line Items]
Collateral pledged		$ 4,910,000,000	5,530,000,000
Securities investment
Debt Instrument [Line Items]
Amount outstanding		0
Qualifying loans
Debt Instrument [Line Items]
Asset balance used to determine maximum borrowing capacity from federal reserve bank		732,000,000
Putable
Debt Instrument [Line Items]
Federal Home Loan Bank Advances		$ 0	$ 20,200,000
Weighted Average [Member]
Debt Instrument [Line Items]
FHLB advances, interest rate at period end		1.63%	1.22%
Minimum
Debt Instrument [Line Items]
FHLB advances, interest rate at period end		0.94%
Maximum
Debt Instrument [Line Items]
FHLB advances, interest rate at period end		2.48%
Wilshire Bancorp, Inc
Debt Instrument [Line Items]
FHLB advances acquired				$ 206,282,000
Amount of acquired FHLB advances repaid	$ 100,000,000
Wilshire Bancorp, Inc | FHLB Advances
Debt Instrument [Line Items]
FHLB advances acquired				$ 200,000,000

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Borrowings - Maturities of FHLB Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
2018	$ 429,900
2019	322,693
2020	145,000
2021	185,000
2022 and thereafter	145,000
Total	$ 1,227,593	$ 754,300

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Subordinated Debentures - Summary of Trust Preferred Securities and Debentures (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Subordinated Borrowing [Line Items]
Subordinated debentures	$ 100,853	$ 99,808
Nara Capital Trust III
Subordinated Borrowing [Line Items]
Initial Rate	4.74%
Nara Statutory Trust IV
Subordinated Borrowing [Line Items]
Initial Rate	4.21%
Nara Statutory Trust V
Subordinated Borrowing [Line Items]
Initial Rate	4.55%
Nara Statutory Trust VI
Subordinated Borrowing [Line Items]
Initial Rate	3.24%
Center Capital Trust I
Subordinated Borrowing [Line Items]
Initial Rate	4.21%
Wilshire Statutory Trust II [Member]
Subordinated Borrowing [Line Items]
Initial Rate	3.39%
Wilshire Statutory Trust III [Member]
Subordinated Borrowing [Line Items]
Initial Rate	2.99%
Wilshire Statutory Trust IV [Member]
Subordinated Borrowing [Line Items]
Initial Rate	2.97%
Saehan Capital Trust I [Member]
Subordinated Borrowing [Line Items]
Initial Rate	3.31%
Trust Preferred Security Amount
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	$ 126,000
Trust Preferred Security Amount | Nara Capital Trust III
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	5,000
Trust Preferred Security Amount | Nara Statutory Trust IV
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	5,000
Trust Preferred Security Amount | Nara Statutory Trust V
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	10,000
Trust Preferred Security Amount | Nara Statutory Trust VI
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	8,000
Trust Preferred Security Amount | Center Capital Trust I
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	18,000
Trust Preferred Security Amount | Wilshire Statutory Trust II [Member]
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	20,000
Trust Preferred Security Amount | Wilshire Statutory Trust III [Member]
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	15,000
Trust Preferred Security Amount | Wilshire Statutory Trust IV [Member]
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	25,000
Trust Preferred Security Amount | Saehan Capital Trust I [Member]
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	20,000
Subordinated Debentures Amount
Subordinated Borrowing [Line Items]
Subordinated debentures	100,853
Subordinated Debentures Amount | Nara Capital Trust III
Subordinated Borrowing [Line Items]
Subordinated debentures	5,155
Subordinated Debentures Amount | Nara Statutory Trust IV
Subordinated Borrowing [Line Items]
Subordinated debentures	5,155
Subordinated Debentures Amount | Nara Statutory Trust V
Subordinated Borrowing [Line Items]
Subordinated debentures	10,310
Subordinated Debentures Amount | Nara Statutory Trust VI
Subordinated Borrowing [Line Items]
Subordinated debentures	8,248
Subordinated Debentures Amount | Center Capital Trust I
Subordinated Borrowing [Line Items]
Subordinated debentures	13,827
Subordinated Debentures Amount | Wilshire Statutory Trust II [Member]
Subordinated Borrowing [Line Items]
Subordinated debentures	15,314
Subordinated Debentures Amount | Wilshire Statutory Trust III [Member]
Subordinated Borrowing [Line Items]
Subordinated debentures	10,767
Subordinated Debentures Amount | Wilshire Statutory Trust IV [Member]
Subordinated Borrowing [Line Items]
Subordinated debentures	17,479
Subordinated Debentures Amount | Saehan Capital Trust I [Member]
Subordinated Borrowing [Line Items]
Subordinated debentures	$ 14,598

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Subordinated Debentures - Summary of Subordinated Debentures (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) grantor_trust
Subordinated Borrowing [Line Items]
Right to defer consecutive payments of interest, maximum term	5 years
Other assets
Subordinated Borrowing [Line Items]
Investment in common trust securities	$ 3,900
Hope Bancorp Grantor Trust [Member]
Subordinated Borrowing [Line Items]
Number of grantor trusts issuing securities | grantor_trust	9
Trust Preferred Securities Subject to Mandatory Redemption
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	$ 126,000
Percent included in tier one capital, maximum	25.00%
Excess of percent threshold included in tier two capital	25.00%
Trust Preferred Securities Subject to Mandatory Redemption | Hope Bancorp Grantor Trust [Member]
Subordinated Borrowing [Line Items]
Trust Preferred Security Amount	$ 126,000

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Income Taxes - Components of income tax expense (Details) - USD ($) $ in Thousands	3 Months Ended								5 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current
Current federal income tax expense (benefit)										$ 64,910	$ 50,780	$ 47,919
Current state income tax expense (benefit)										24,739	20,922	16,548
Current income tax expense (benefit)										89,649	71,702	64,467
Deferred
Deferred federal income tax expense (benefit)										31,464	4,198	(1,393)
Deferred state income tax expense (benefit)										3,276	1,552	17
Deferred income tax expense (benefit)										34,740	5,750	(1,376)
Total
Federal income tax expense (benefit)										96,374	54,978	46,526
State income tax expense (benefit)										28,015	22,474	16,565
Income tax provision	$ 48,231	$ 27,708	$ 25,451	$ 22,999	$ 27,240	$ 17,169	$ 16,833	$ 16,210	$ 39,828	124,389	$ 77,452	$ 63,091
Provisional amount recorded as increase to income tax provision expense										$ 25,400

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Income Taxes - Reconciliation of effective tax rate (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of effective tax rate
Statutory tax rate	35.00%	35.00%	35.00%
State taxes-net of federal tax effect	7.04%	7.28%	7.21%
Rate change - federal and state	9.36%	0.00%	0.00%
CRA investment tax credit	(3.50%)	(2.40%)	(1.31%)
Bank owned life insurance	(0.09%)	(0.26%)	(0.25%)
Municipal securities	(0.45%)	(0.22%)	(0.15%)
Nondeductible transaction costs	(0.02%)	0.80%	0.00%
Other	(0.19%)	0.31%	0.11%
Effective income tax rate, percent	47.15%	40.51%	40.61%

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Income Taxes - Components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Purchase accounting fair value adjustment	$ 21,508	$ 42,009
Statutory bad debt deduction less than financial statement provision	20,162	26,574
Net operating loss carryforward	2,351	4,171
Investment security provision	593	1,646
State tax deductions	4,304	5,669
Accrued compensation	149	207
Deferred compensation	214	348
Mark to market on loans held for sale	764	1,244
Depreciation	221	3,157
Nonaccrual loan interest	6,272	7,330
Other real estate owned	1,753	1,507
FDIC loss share receivable	362	772
Unrealized loss on securities available for sale	8,961	9,989
Non-qualified stock option and restricted share expense	1,339	2,187
Goodwill	203	490
Other	3,053	7,063
Total deferred tax assets, gross	72,209	114,363
Deferred tax liabilities:
FHLB stock dividends	(695)	(1,054)
Deferred loan costs	(5,857)	(7,085)
State taxes deferred and other	(3,229)	(6,629)
Prepaid expenses	(1,542)	(1,840)
Amortization of intangibles	(5,236)	(8,639)
Lease expense	(447)	(1,006)
Total deferred tax liabilities, gross	(17,006)	(26,253)
Net deferred tax assets:	$ 55,203	$ 88,110

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Income Taxes - Summary of loss carryforwards by jurisdiction (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards, remaining amount	$ 10,020	$ 11,163
Net operating loss carry-forwards, annual limitation	1,143	1,143
Federal | Saehan Bank [Member] | Ownership Change [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards, remaining amount	2,940	3,166
Net operating loss carry-forwards, annual limitation	226	226
Federal | Korea First Bank of New York [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards, remaining amount	991	1,488
Net operating loss carry-forwards, annual limitation	497	497
Federal | Pacific International Bancorp, Inc.
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards, remaining amount	6,089	6,509
Net operating loss carry-forwards, annual limitation	420	420
State
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards, remaining amount	2,940	3,166
Net operating loss carry-forwards, annual limitation	226	226
State | Saehan Bank [Member] | Ownership Change [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards, remaining amount	2,940	3,166
Net operating loss carry-forwards, annual limitation	226	226
State | Korea First Bank of New York [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards, remaining amount	0	0
Net operating loss carry-forwards, annual limitation	0	0
State | Pacific International Bancorp, Inc.
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards, remaining amount	0	0
Net operating loss carry-forwards, annual limitation	$ 0	$ 0

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Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of the beginning and ending amount of unrecognized tax benefits:
Balance, beginning of year	$ 2,187	$ 1,816
Additions based on tax positions related to the prior year	3	1,399
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	0	(916)
Settlements with taxing authorities	2,100
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities	(65)	(112)
Balance, end of year	2,125	2,187
Total amount of tax benefits that if recognized would favorable impact the effective tax rate	1,900	1,600
Interest and penalties accrued	$ 348	$ 306

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Stock-Based Compensation - Plan Description (Details) - shares		12 Months Ended
	Jul. 29, 2016	Dec. 31, 2017	Sep. 01, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)		1,341,621
Restricted stock, performance shares and performance units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock, restriction period		1 year
Time based vesting of grants | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock, restriction period		3 years
2016 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			2,400,000
2016 Stock Incentive Plan [Member] | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percent (in hundredths)		100.00%
2016 Stock Incentive Plan [Member] | Stock options and stock appreciation rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term		10 years
2016 Stock Incentive Plan [Member] | Stock options and stock appreciation rights | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period minimum		3 years
2016 Stock Incentive Plan [Member] | Stock options and stock appreciation rights | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period minimum		5 years
Wilshire Bancorp, Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock received for each share of Wilshire common stock	0.7034

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Stock-Based Compensation - Stock Option Activity (Details) - USD ($)		12 Months Ended
	Jul. 29, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Granted (in shares)		0	1,281,552	0
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding - beginning of period (in shares)		1,603,876
Exercised (in shares)		(215,270)
Expired (in shares)		(250,762)
Forfeited (in shares)		(62,421)
Outstanding - end of period (in shares)		1,075,423	1,603,876
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding - beginning of period, weighted-average exercise price per share (usd per share)		$ 15.28
Granted - weighted average exercise price (usd per share)		0.00
Exercised - weighted average exercise price (usd per share)		8.46
Expired - weighted-average exercise price per share (usd per share)		21.61
Forfeited - weighted average exercise price (usd per share)		17.17
Outstanding - end of period, weighted-average exercise price per share (usd per share)		$ 15.06	$ 15.28
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options exercisable - end of period (in shares)		644,086
Options exercisable, weighted-average exercise price per share (usd per share)		$ 13.81
Outstanding, weighted-average remaining contractual life (years)		7 years 3 months 5 days
Options exercisable, weighted-average remaining contractual life (years)		6 years 6 months 13 days
Outstanding, aggregate intrinsic value		$ 3,433,460
Options exercisable, aggregate intrinsic value		$ 2,857,618
Wilshire Bancorp, Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable, Entity Shares Issued Per Acquiree Share	0.7034

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Stock-Based Compensation - Restricted and Performance Unit Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Allocated share-based compensation expense	$ 3,200	$ 3,000	$ 1,000
Total compensation cost not yet recognized	$ 5,500
Retricted and performance unit activity
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding - beginning of the period (in shares)	398,658
Granted (in shares)	165,612
Vested (in shares)	(149,792)
Forfeited (in shares)	(35,059)
Outstanding - end of the period (in shares)	379,419	398,658
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding - beginning of the period, weighted-average grant date fair value (in dollars per share)	$ 16.16
Granted, weighted-average grant date fair value (in dollars per share)	16.77
Vested, weighted-average grant date fair value (in dollars per share)	16.15
Forfeited, weighted-average grant date fair value (in dollars per share)	16.30
Outstanding - end of the period, weighted-average grant date fair value (in dollars per share)	$ 16.42	$ 16.16
Restricted And Performance Unit Activity [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Equity instruments other than options, vested in period	$ 2,700	$ 1,900	$ 899
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Total compensation cost not yet recognized, period for recognition	3 years
Employee Stock Purchase Plan (ESPP) [Domain]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date	10.00%
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate	20.00%
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee, Value	$ 25
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Employee Stock Ownership Plan (ESOP), Compensation Expense	$ 64

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Stock-Based Compensation - Estimated Annual Expense (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Estimated Annual Stock-Based Compensation Expense
2017	$ 2,757
2018	1,466
2019	864
2020	420
2021	42
Total	$ 5,549

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Employee Benefit Plans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) officers	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Postretirement Life Insurance
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Base amount of death proceeds, annual percentage increase until retirement age is reached	3.00%
Period death benefit required to be paid within following participant's death	90 days
Total cost recognized for the period	$ 7,800	$ 6,600
401(k) Savings Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Minimum age requirement	21 years
Minimum service period required	3 months
Employer matching contribution, percent of match	75.00%
Maximum annual contribution per employee, percent	8.00%
Total cost recognized for the period	$ 4,400	2,600	$ 2,300
Deferred compensation plan | Directors and officers
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Deferred compensation liability	1,100	1,200
Deferred compensation plan, period expense	21	23	25
Long term incentive plan | Named executive officers ('NEO')
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Deferred compensation plan, period expense	$ 455	$ 418	$ 306
Number of officers currently participating in the LTIP | officers	2
Long term incentive plan | Named executive officers ('NEO') | Minimum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Deferred compensation plan, requisite service period	5 years
Long term incentive plan | Named executive officers ('NEO') | Maximum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Deferred compensation plan, requisite service period	10 years

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Commitments and Contingencies - Operating leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Operating lease expense	$ 17,800	$ 14,700	$ 11,100
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2017	14,055
2018	12,124
2019	9,774
2020	9,426
2021	5,456
Thereafter	15,863
Total future minimum payments	66,698
Loss Contingency Accrual	$ 414	$ 557

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Commitments and Contingencies - Commitments and letters of credit (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Supply Commitment [Line Items]
Commitments and letters of credit	$ 1,714,343	$ 1,732,508
Low Income Housing Tax Credit [Member]
Supply Commitment [Line Items]
Commitments and letters of credit	38,467	24,409
Unused Credit Extensions
Supply Commitment [Line Items]
Commitments and letters of credit	1,526,981	1,592,221
Standby Letters of Credit
Supply Commitment [Line Items]
Commitments and letters of credit	74,748	63,753
Other Commercial Letters of Credit
Supply Commitment [Line Items]
Commitments and letters of credit	$ 74,147	$ 52,125

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Commitments and Contingencies - Mortgage Banking Derivatives (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Interest Rate Lock Commitments [Member]
Derivative [Line Items]
Notional amount	$ 4.8	$ 23.7
Short [Member] | Forward Contracts [Member]
Derivative [Line Items]
Notional amount	$ 4.8	$ 13.0

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value, Recurring (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Assets:
Securities available for sale, at fair value	$ 1,720,257,000	$ 1,556,740,000
Transfers between levels 1, 2 and 3	0
Collateralized Mortgage Obligations
Assets:
Securities available for sale, at fair value	838,709,000	705,667,000
Residential Mortgage Backed Securities [Member]
Assets:
Securities available for sale, at fair value	471,214,000	602,952,000
Commercial Mortgage Backed Securities [Member]
Assets:
Securities available for sale, at fair value	301,365,000	125,089,000
Corporate securities
Assets:
Securities available for sale, at fair value	4,475,000	11,127,000
Municipal securities
Assets:
Securities available for sale, at fair value	82,537,000	86,839,000
Mutual funds
Assets:
Securities available for sale, at fair value	21,957,000	13,058,000
Recurring basis
Assets:
Interest rate swaps	(2,838,000)
Interest rate swaps		(1,565,000)
Mortgage banking derivatives	33,000	147,000
Liabilities:
Interest rate swaps	(2,838,000)	(1,565,000)
Mortgage banking derivatives	5,000	41,000
Recurring basis | Collateralized Debt Obligations [Member]
Assets:
Securities available for sale, at fair value	0	12,008,000
Recurring basis | Collateralized Mortgage Obligations
Assets:
Securities available for sale, at fair value	838,709,000	705,667,000
Recurring basis | Residential Mortgage Backed Securities [Member]
Assets:
Securities available for sale, at fair value	471,214,000	602,952,000
Recurring basis | Commercial Mortgage Backed Securities [Member]
Assets:
Securities available for sale, at fair value	301,365,000	125,089,000
Recurring basis | Corporate securities
Assets:
Securities available for sale, at fair value	4,475,000	11,127,000
Recurring basis | Municipal securities
Assets:
Securities available for sale, at fair value	82,537,000	86,839,000
Recurring basis | Mutual funds
Assets:
Securities available for sale, at fair value	21,957,000	13,058,000
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Interest rate swaps	0
Interest rate swaps		0
Mortgage banking derivatives	0	0
Liabilities:
Interest rate swaps	0	0
Mortgage banking derivatives	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized Debt Obligations [Member]
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized Mortgage Obligations
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential Mortgage Backed Securities [Member]
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial Mortgage Backed Securities [Member]
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds
Assets:
Securities available for sale, at fair value	21,957,000	13,058,000
Recurring basis | Significant Other Observable Inputs (Level 2)
Assets:
Interest rate swaps	(2,838,000)
Interest rate swaps		(1,565,000)
Mortgage banking derivatives	33,000	147,000
Liabilities:
Interest rate swaps	(2,838,000)	(1,565,000)
Mortgage banking derivatives	5,000	41,000
Recurring basis | Significant Other Observable Inputs (Level 2) | Collateralized Debt Obligations [Member]
Assets:
Securities available for sale, at fair value	0	12,008,000
Recurring basis | Significant Other Observable Inputs (Level 2) | Collateralized Mortgage Obligations
Assets:
Securities available for sale, at fair value	838,709,000	705,667,000
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential Mortgage Backed Securities [Member]
Assets:
Securities available for sale, at fair value	471,214,000	602,952,000
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial Mortgage Backed Securities [Member]
Assets:
Securities available for sale, at fair value	301,365,000	125,089,000
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities
Assets:
Securities available for sale, at fair value	4,475,000	11,127,000
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal securities
Assets:
Securities available for sale, at fair value	81,429,000	85,700,000
Recurring basis | Significant Other Observable Inputs (Level 2) | Mutual funds
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Significant Unobservable Inputs (Level 3)
Assets:
Interest rate swaps	0
Interest rate swaps		0
Mortgage banking derivatives	0	0
Liabilities:
Interest rate swaps	0	0
Mortgage banking derivatives	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Collateralized Debt Obligations [Member]
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Collateralized Mortgage Obligations
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential Mortgage Backed Securities [Member]
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial Mortgage Backed Securities [Member]
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate securities
Assets:
Securities available for sale, at fair value	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Municipal securities
Assets:
Securities available for sale, at fair value	1,108,000	1,139,000
Recurring basis | Significant Unobservable Inputs (Level 3) | Mutual funds
Assets:
Securities available for sale, at fair value	$ 0	$ 0

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Fair Value Measurements - Unobservable Inputs Reconciliation (Details) - Municipal securities - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance, January 1	$ 1,139	$ 1,166
Total losses included in other comprehensive income	(31)	(27)
Ending Balance, December 31	$ 1,108	$ 1,139

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Fair Value Measurements - Assets Measured at Fair Value, Non-Recurring (Details) - Non-recurring basis - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Real Estate
Assets:
Assets	$ 6,086	$ 58,882
Commercial
Assets:
Assets	3,320	6,563
Consumer
Assets:
Assets	84	253
Loans held for sale, net
Assets:
Assets		3,788
Other real estate owned
Assets:
Assets	5,615	21,990
Changes Measurement [Member] | Real Estate
Assets:
Total gains (losses)	(2,552)	163
Changes Measurement [Member] | Commercial
Assets:
Total gains (losses)	(5,424)	(5,856)
Changes Measurement [Member] | Trade finance
Assets:
Total gains (losses)	(1,187)	1,739
Changes Measurement [Member] | Consumer
Assets:
Total gains (losses)	(912)	(713)
Changes Measurement [Member] | Loans held for sale, net
Assets:
Total gains (losses)	12	2,920
Changes Measurement [Member] | Other real estate owned
Assets:
Total gains (losses)	(1,962)	2,245
Quoted Prices in Active Markets for Identical Assets (Level 1) | Real Estate
Assets:
Assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial
Assets:
Assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer
Assets:
Assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held for sale, net
Assets:
Assets		0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned
Assets:
Assets	0	0
Significant Other Observable Inputs (Level 2) | Real Estate
Assets:
Assets	0	0
Significant Other Observable Inputs (Level 2) | Commercial
Assets:
Assets	0	0
Significant Other Observable Inputs (Level 2) | Consumer
Assets:
Assets	0	0
Significant Other Observable Inputs (Level 2) | Loans held for sale, net
Assets:
Assets		3,788
Significant Other Observable Inputs (Level 2) | Other real estate owned
Assets:
Assets	0	0
Significant Unobservable Inputs (Level 3) | Real Estate
Assets:
Assets	6,086	58,882
Significant Unobservable Inputs (Level 3) | Commercial
Assets:
Assets	3,320	6,563
Significant Unobservable Inputs (Level 3) | Consumer
Assets:
Assets	84	253
Significant Unobservable Inputs (Level 3) | Loans held for sale, net
Assets:
Assets		0
Significant Unobservable Inputs (Level 3) | Other real estate owned
Assets:
Assets	$ 5,615	$ 21,990

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Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Financial Liabilities:
Accrued Interest Payable Fair Value Disclosure	$ 15,961	$ 10,863
Reported Value Measurement [Member]
Financial Assets:
FHLB stock	29,776	21,964
Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value
Financial Assets:
Cash and cash equivalents	492,000	437,334
Quoted Prices in Active Markets for Identical Assets (Level 1) | Reported Value Measurement [Member]
Financial Assets:
Cash and cash equivalents	492,000	437,334
Significant Other Observable Inputs (Level 2) | Estimate of Fair Value
Financial Assets:
Loans held for sale	32,048	24,492
Customers' liabilities on acceptances	1,691	2,899
Financial Liabilities:
Noninterest-bearing deposits	2,998,734	2,900,241
Saving and other interest bearing demand deposits	3,573,212	3,703,352
Time deposits	4,263,585	4,036,664
FHLB advances	1,220,529	749,486
Federal Funds Purchased, Fair Value Disclosure	69,900
Accrued Interest Payable Fair Value Disclosure	15,961	10,863
Subordinated debentures	100,853	99,808
Bank's liabilities on acceptances outstanding	1,691	2,899
Significant Other Observable Inputs (Level 2) | Reported Value Measurement [Member]
Financial Assets:
Loans held for sale	29,661	22,785
Customers' liabilities on acceptances	1,691	2,899
Financial Liabilities:
Noninterest-bearing deposits	2,998,734	2,900,241
Saving and other interest bearing demand deposits	3,573,212	3,703,352
Time deposits	4,274,663	4,038,442
FHLB advances	1,157,693	754,290
Federal Funds Purchased, Fair Value Disclosure	69,900
Subordinated debentures	100,853	99,808
Bank's liabilities on acceptances outstanding	1,691	2,899
Significant Unobservable Inputs (Level 3) | Estimate of Fair Value
Financial Assets:
Loans receivable - net	11,112,179	10,666,642
Servicing Assets, Fair Value Disclosure	27,511	29,030
Significant Unobservable Inputs (Level 3) | Reported Value Measurement [Member]
Financial Assets:
Loans receivable - net	11,018,034	10,463,989
Servicing Assets, Fair Value Disclosure	24,710	26,457
Fair Value Inputs, Level 2 And Level 3 [Member] | Estimate of Fair Value
Financial Assets:
Other Investments, Fair Value Disclosure	52,960	43,773
Accrued Interest Receivable Fair Value Disclosure	29,979	26,880
Fair Value Inputs, Level 2 And Level 3 [Member] | Reported Value Measurement [Member]
Financial Assets:
Other Investments, Fair Value Disclosure	53,366	44,202
Accrued Interest Receivable Fair Value Disclosure	$ 29,979	$ 26,880
Cash and Cash Equivalents [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 1	Level 1
Other Investments [Member] | Fair Value Inputs, Level 2 And Level 3 [Member] | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2/3	Level 2/3
Loans held for sale, net | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2	Level 2
Loans Receivable [Member] | Significant Unobservable Inputs (Level 3) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 3	Level 3
Accrued interest receivable [Member] | Fair Value Inputs, Level 2 And Level 3 [Member] | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2/3	Level 2/3
Servicing Assets [Member] | Significant Unobservable Inputs (Level 3) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 3	Level 3
Customers' liabilities on acceptances [Member] | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2	Level 2
Noninterest Bearing Deposits [Member] | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2	Level 2
Saving and other interest bearing demand deposits [Member] | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2	Level 2
Bank Time Deposits [Member] | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2	Level 2
Federal Home Loan Bank Borrowings [Member] | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2	Level 2
Federal Funds Purchased [Member] | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2
Subordinated Debt Obligations [Member] | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2	Level 2
Accrued interest payable [Member] | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2	Level 2
Bank's liabilities on acceptances outstanding [Member] | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value
Financial Liabilities:
Fair Value Measurements, Valuation Techniques	Level 2	Level 2

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Derivative Financial Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Interest Rate Lock Commitments [Member]
Derivative [Line Items]
Derivative Asset, Notional Amount	$ 4,795	$ 11,168
Derivative Asset, Fair Value, Gross Asset	25	130
Derivative Liability, Notional Amount	0	1,810
Derivative Liability, Fair Value, Gross Liability	0	3
Notional amount	4,800	23,700
Interest Rate Swap | Not Designated as Hedging Instrument | Customers
Derivative [Line Items]
Notional amount	$ 274,156	$ 223,098
Weighted average remaining term (years)	7 years 3 months 18 days	7 years 4 months 24 days
Fixed rate (weighted average)	4.34%	4.29%
Variable rate (weighted average)	3.74%	3.06%
Estimated fair value	$ (2,838)	$ (1,565)
Interest Rate Swap | Not Designated as Hedging Instrument | Correspondent Banks
Derivative [Line Items]
Notional amount	$ 274,156	$ 223,098
Weighted average remaining term (years)	7 years 3 months 18 days	7 years 4 months 24 days
Fixed rate (weighted average)	3.74%	3.06%
Variable rate (weighted average)	4.34%	4.29%
Estimated fair value	$ 2,838	$ 1,565
Short [Member] | Forward Contracts [Member]
Derivative [Line Items]
Derivative Asset, Notional Amount	2,452	3,223
Derivative Asset, Fair Value, Gross Asset	8	17
Derivative Liability, Notional Amount	2,343	9,755
Derivative Liability, Fair Value, Gross Liability	5	38
Notional amount	$ 4,800	$ 13,000

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Stockholders' Equity - Discussion of Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 29, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Stockholders' equity		$ 1,928,255	$ 1,855,473	$ 938,095	$ 882,773
Wilshire Bancorp, Inc
Business Acquisition [Line Items]
Common stock received for each share of Wilshire common stock	0.7034
Stock issued during period, shares	55,500,000
Business acquisition, share price (usd per share)	$ 15.37
Issuance of shares in exchange for Wilshire common stock	$ 852,939
Hope stock options issued in exchange Wilshire stock options	$ 3,370

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Stockholders' Equity - Discussion of Warrants (Details) $ in Thousands		12 Months Ended
	May 20, 2015 USD ($) shares	Dec. 31, 2017 USD ($) warrant shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Class of Warrant or Right [Line Items]
Payments for purchase of warrants | $		$ 0	$ 0	$ 1,150
Number of warrant remaining | warrant		1
Common Stock
Class of Warrant or Right [Line Items]
Number of shares repurchased under warrant to purchase | shares	350,767
Payments for purchase of warrants | $	$ 1,200
Potential repurchase | shares		20,379

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Stockholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Equity [Abstract]
Quarterly dividends paid (in dollars per share)	$ 0.13	$ 0.12	$ 0.11	$ 0.12	$ 0.12	$ 0.11	$ 0.10	$ 0.11
Aggregate dividends paid									$ 67,661	$ 42,493	$ 33,407

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Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 1,855,473	$ 938,095	$ 882,773
Balance at end of period	1,928,255	1,855,473	938,095
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(14,657)	(1,832)	1,705
Unrealized losses on securities available for sale and interest only strips	(5,796)	(21,273)	(5,717)
Reclassification adjustments for gains realized in income	(301)	(950)	(424)
Less tax benefit	(2,570)	(9,398)	(2,604)
Total other comprehensive (loss) income	(3,527)	(12,825)	(3,537)
Reclassification from AOCI to retained earnings due to tax reform	(3,597)
Balance at end of period	(21,781)	$ (14,657)	$ (1,832)
AOCI Attributable to Parent | Accounting Standards Update 2018-02
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification from AOCI to retained earnings due to tax reform	$ (3,600)

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Regulatory Matters (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Parent Company
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier One Capital	$ 1,471,193	$ 1,400,246
Common Equity Tier One Capital Ratio	12.30%	12.10%
Common Equity Tier One Capital Required for Capital Adequacy	$ 538,435	$ 520,917
Total capital (to risk-weighted assets), Amount
Total Capital, Actual	1,653,521	1,578,690
Total Capital, Required For Capital Adequacy Purposes	957,217	926,076
Tier I capital (to risk-weighted assets), Amount
Tier I Capital, Actual (Risk Based)	1,568,144	1,496,153
Tier One Risk Based Capital Required for Capital Adequacy	717,913	694,557
Tier I capital (to average assets), Amount
Tier I Capital, Actual (Leverage)	1,568,144	1,496,153
Tier I Capital, Required For Capital Adequacy Purposes	$ 543,528	$ 520,947
Total capital and Tier I capital (to risk-weighted assets), Ratio
Total Capital (to Risk Weighted Assets), Actual	13.82%	13.64%
Total Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes	8.00%	8.00%
Tier I Capital (to Risk Weighted Assets), Actual (Risk Based)	13.11%	12.92%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Required for Capital Adequacy with Capital Buffer	$ 1,106,782	$ 998,425
Required for Capital Adequacy with Capital Buffer to Risk Weighted Assets	9.25%	8.625%
Tier One Required for Capital Adequacy with Capital Buffer	$ 867,478	$ 766,906
Tier One Required for Capital Adequacy with Capital Buffer to Risk Weighted Assets	7.25%	6.625%
Tier I capital (to average assets), Ratio
Tier I Capital (to Average Assets), Actual (Leverage)	11.54%	11.49%
Tier I Capital (to Average Assets), Minimum For Capital Adequacy Purposes (Leverage)	4.00%	4.00%
Subsidiaries [Member]
Total capital and Tier I capital (to risk-weighted assets), Ratio
Required for Capital Adequacy with Capital Buffer	$ 1,106,255	$ 997,876
Required for Capital Adequacy with Capital Buffer to Risk Weighted Assets	9.25%	8.625%
Tier One Required for Capital Adequacy with Capital Buffer	$ 687,672	$ 766,484
Tier One Required for Capital Adequacy with Capital Buffer to Risk Weighted Assets	7.25%	6.625%
Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier One Capital	$ 1,548,401	$ 1,475,228
Common Equity Tier One Capital Ratio	12.95%	12.75%
Common Equity Tier One Capital Required for Capital Adequacy	$ 538,178	$ 520,631
Total capital (to risk-weighted assets), Amount
Total Capital, Actual	1,633,778	1,557,765
Total Capital, Required For Capital Adequacy Purposes	956,761	925,566
Required To Be Well Capitalized under Prompt Corrective Action Provisions	$ 1,195,951	$ 1,156,957
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Tier I capital (to risk-weighted assets), Amount
Tier I Capital, Actual (Risk Based)	$ 1,548,401	$ 1,475,228
Tier One Risk Based Capital Required for Capital Adequacy	717,571	694,174
Tier I Capital, Minimum to be Well Capitalized Under Prompt Corrective Action Provisions (Risk Based)	956,761	925,566
Tier I capital (to average assets), Amount
Tier I Capital, Actual (Leverage)	1,548,401	1,475,228
Tier I Capital, Required For Capital Adequacy Purposes	543,441	520,903
Tier I Capital, Minimum to be Well Capitalized Under Prompt Corrective Action Provisions (Leverage)	$ 679,301	$ 651,129
Total capital and Tier I capital (to risk-weighted assets), Ratio
Total Capital (to Risk Weighted Assets), Actual	13.66%	13.46%
Total Capital (to Risk Weighted Assets), Minimum For Capital Adequacy Purposes	8.00%	8.00%
Tier I Capital (to Risk Weighted Assets), Actual (Risk Based)	12.95%	12.75%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Tier I Capital (to Risk Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions (Risk Based)	8.00%	8.00%
Common Equity Tier One Capital Required to be Well-Capitalized	$ 777,368	$ 752,022
Tier I capital (to average assets), Ratio
Tier I Capital (to Average Assets), Actual (Leverage)	11.40%	11.33%
Tier I Capital (to Average Assets), Minimum For Capital Adequacy Purposes (Leverage)	4.00%	4.00%
Tier I Capital (to Average Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions (Leverage)	5.00%	5.00%
Common equity tier 1 capital [Member] | Parent Company
Total capital and Tier I capital (to risk-weighted assets), Ratio
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%	4.50%
Common equity tier 1 capital [Member] | Bank
Total capital and Tier I capital (to risk-weighted assets), Ratio
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%	4.50%
Tier I Capital (to Risk Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions (Risk Based)	6.50%	6.50%
Common Equity Tier 1 [Member] | Parent Company
Total capital and Tier I capital (to risk-weighted assets), Ratio
Tier One Required for Capital Adequacy with Capital Buffer	$ 688	$ 593,267
Tier One Required for Capital Adequacy with Capital Buffer to Risk Weighted Assets	5.75%	5.125%
Common Equity Tier 1 [Member] | Subsidiaries [Member]
Total capital and Tier I capital (to risk-weighted assets), Ratio
Tier One Required for Capital Adequacy with Capital Buffer	$ 688	$ 592,941
Tier One Required for Capital Adequacy with Capital Buffer to Risk Weighted Assets	5.75%	5.125%

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net income available to common stockholders (Numerator)
Net income as reported	$ 17,984	$ 44,564	$ 40,687	$ 36,210	$ 40,630	$ 26,105	$ 23,390	$ 23,622	$ 139,445	$ 113,747	$ 92,258
Basic EPS - common stock									139,445	113,747	92,258
Diluted EPS - common stock									$ 139,445	$ 113,747	$ 92,258
Weighted Average Shares (Denominator)
Basic EPS - common stock (in shares)									135,348,938	103,289,059	79,549,651
Effect of Dilutive Securities:
Stock Options and Performance Units (in shares)									336,031	241,259	31,905
Common stock warrants (in shares)											30,244
Diluted EPS - common stock (in shares)									135,684,969	103,530,318	79,611,800
Per Share (Amount)
Basic EPS - common stock (in dollars per share)	$ 0.13	$ 0.33	$ 0.30	$ 0.27	$ 0.30	$ 0.22	$ 0.29	$ 0.30	$ 1.03	$ 1.10	$ 1.16
Diluted EPS - common stock (in dollars per share)	$ 0.13	$ 0.33	$ 0.30	$ 0.27	$ 0.30	$ 0.22	$ 0.29	$ 0.30	$ 1.03	$ 1.10	$ 1.16
Stock options and restricted shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares of common stock									443,000	519,000
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares of common stock									20,379	19,849

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Servicing Assets (Servicing Asset at Amortized Cost) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Transfers and Servicing [Abstract]
Balance at beginning of period	$ 26,457	$ 12,000
Servicing Asset at Amortized Cost, Additions	5,492	4,472
Servicing Asset at Amortized Cost, Additions by Business Acquisition	0	15,873
Amortization	(7,239)	(5,888)
Balance at end of period	24,710	26,457
SBA Servicing Asset At Amortized Cost	22,200	24,700
Mortgage Servicing Asset At Amortized Cost	$ 2,500	$ 1,800

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Servicing Assets (Fair Value Assumptions) (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2017
Minimum
Servicing Assets at Fair Value [Line Items]
SBA Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate	5.55%	10.13%
SBA Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed	7.20%	7.50%
Mortgage Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate	7.00%	9.50%
Mortgage Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed	13.77%	7.71%
Maximum
Servicing Assets at Fair Value [Line Items]
SBA Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate	9.85%	11.13%
SBA Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed	12.10%	12.50%
Mortgage Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate	7.25%	9.66%
Mortgage Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed	15.88%	9.13%

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Condensed Financial Statements of Parent Company (Statements of Financial Condition) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 492,000	$ 437,334	$ 298,389	$ 462,160
Other assets	47,642	46,778
Total assets	14,206,717	13,441,422
LIABILITIES:
Subordinated Debt	100,853	99,808
Total liabilities	12,278,462	11,585,949
STOCKHOLDERS’ EQUITY	1,928,255	1,855,473	938,095	882,773
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	14,206,717	13,441,422
Parent Company
ASSETS
Cash and cash equivalents	13,327	13,859	$ 4,742	$ 9,507
Other assets	10,763	11,428
Investment in bank subsidiary	2,005,462	1,930,455
Total assets	2,029,552	1,955,742
LIABILITIES:
Subordinated Debt	100,853	99,808
Accounts payable and other liabilities	444	461
Total liabilities	101,297	100,269
STOCKHOLDERS’ EQUITY	1,928,255	1,855,473
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 2,029,552	$ 1,955,742

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Condensed Financial Statements of Parent Company (Statements of Income) (Details) - USD ($) $ in Thousands	3 Months Ended								5 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
Interest income	$ 153,185	$ 147,643	$ 138,533	$ 132,743	$ 135,387	$ 119,552	$ 83,534	$ 83,461		$ 572,104	$ 421,934	$ 313,660
Interest expense	26,793	24,380	21,713	17,838	18,178	16,078	12,470	11,853		90,724	58,579	40,618
Income tax provision	(48,231)	(27,708)	(25,451)	(22,999)	(27,240)	(17,169)	(16,833)	(16,210)	$ (39,828)	(124,389)	(77,452)	(63,091)
NET INCOME	$ 17,984	$ 44,564	$ 40,687	$ 36,210	$ 40,630	$ 26,105	$ 23,390	$ 23,622		139,445	113,747	92,258
Other Comprehensive Income (Loss), Net of Tax										(3,527)	(12,825)	(3,537)
Comprehensive income										135,918	100,922	88,721
Parent Company
Condensed Financial Statements, Captions [Line Items]
Interest income										0	0	0
Interest expense										5,089	2,927	1,561
Other operating expense										5,988	9,826	4,967
Equity in earnings of bank subsidiary										146,397	121,996	96,318
Income before income tax benefit										135,320	109,243	89,790
Income tax provision										4,125	4,504	2,468
NET INCOME										139,445	113,747	92,258
Other Comprehensive Income (Loss), Net of Tax										(3,527)	(12,825)	(3,537)
Comprehensive income										$ 135,918	$ 100,922	$ 88,721

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Condensed Financial Statements of Parent Company (Statements of Cash Flows) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES (net of acquisition)
Net income	$ 17,984	$ 44,564	$ 40,687	$ 36,210	$ 40,630	$ 26,105	$ 23,390	$ 23,622	$ 139,445	$ 113,747	$ 92,258
Adjustments to reconcile net income to net cash from operating activities:
Stock-based compensation expense									3,161	2,967	1,046
Change in other assets									(1,987)	16,418	(4,237)
Net cash provided by operating activities									203,921	130,605	108,092
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash and cash equivalents acquired through the merger									0	100,127	0
Net cash used in investing activities									(767,335)	(463,356)	(934,994)
CASH FLOWS FROM FINANCING ACTIVITIES:
Redemption of common stock warrant									0	0	(1,150)
Net cash provided by financing activities									618,080	471,696	663,131
NET CHANGE IN CASH AND CASH EQUIVALENTS									54,666	138,945	(163,771)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR				437,334				298,389	437,334	298,389	462,160
CASH AND CASH EQUIVALENTS, END OF YEAR	492,000				437,334				492,000	437,334	298,389
Parent Company
CASH FLOWS FROM OPERATING ACTIVITIES (net of acquisition)
Net income									139,445	113,747	92,258
Adjustments to reconcile net income to net cash from operating activities:
Amortization									1,045	558	188
Stock-based compensation expense									523	0	0
Change in other assets									665	2,172	717
Change in accounts payable and other liabilities									(17)	(119)	(1,053)
Equity in undistributed earnings of bank subsidiary									(76,397)	(77,996)	(62,318)
Net cash provided by operating activities									65,264	38,362	29,792
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash and cash equivalents acquired through the merger									0	13,248	0
Net cash used in investing activities									0	13,248	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of additional stock pursuant to various stock plans									1,865	0	0
Redemption of common stock warrant									0	0	(1,150)
Payments of cash dividends									(67,661)	(42,493)	(33,407)
Net cash provided by financing activities									(65,796)	(42,493)	(34,557)
NET CHANGE IN CASH AND CASH EQUIVALENTS									(532)	9,117	(4,765)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR				$ 13,859				$ 4,742	13,859	4,742	9,507
CASH AND CASH EQUIVALENTS, END OF YEAR	$ 13,327				$ 13,859				$ 13,327	$ 13,859	$ 4,742

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Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								5 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Interest income	$ 153,185	$ 147,643	$ 138,533	$ 132,743	$ 135,387	$ 119,552	$ 83,534	$ 83,461		$ 572,104	$ 421,934	$ 313,660
Interest expense	26,793	24,380	21,713	17,838	18,178	16,078	12,470	11,853		90,724	58,579	40,618
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	126,392	123,263	116,820	114,905	117,209	103,474	71,064	71,608		481,380	363,355	273,042
Provision for loan losses	3,600	5,400	2,760	5,600	800	6,500	1,200	500		17,360	9,000	8,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	122,792	117,863	114,060	109,305	116,409	96,974	69,864	71,108		464,020	354,355	265,042
Noninterest income	16,451	16,246	16,115	17,603	18,192	14,146	10,707	8,774	$ 29,546	66,415	51,819	43,691
Noninterest expense	73,028	61,837	64,037	67,699	66,731	67,846	40,348	40,050	120,954	266,601	214,975	153,384
INCOME BEFORE INCOME TAX PROVISION	66,215	72,272	66,138	59,209	67,870	43,274	40,223	39,832		263,834	191,199	155,349
Income tax provision	48,231	27,708	25,451	22,999	27,240	17,169	16,833	16,210	$ 39,828	124,389	77,452	63,091
NET INCOME	$ 17,984	$ 44,564	$ 40,687	$ 36,210	$ 40,630	$ 26,105	$ 23,390	$ 23,622		$ 139,445	$ 113,747	$ 92,258
Basic EPS - common stock (in dollars per share)	$ 0.13	$ 0.33	$ 0.30	$ 0.27	$ 0.30	$ 0.22	$ 0.29	$ 0.30		$ 1.03	$ 1.10	$ 1.16
Diluted EPS - common stock (in dollars per share)	$ 0.13	$ 0.33	$ 0.30	$ 0.27	$ 0.30	$ 0.22	$ 0.29	$ 0.30		$ 1.03	$ 1.10	$ 1.16