EX-99.1 2 hope-3x31x18ex991.htm EXHIBIT 99.1 Exhibit
hopebancorp5.jpg
News Release


HOPE BANCORP REPORTS RECORD NET INCOME OF $51.2 MILLION AND EPS OF $0.38
FOR 2018 FIRST QUARTER

Q1 2018 Highlights:
•
Q1 net income totals a record $51.2 million, or $0.38 per diluted common share
•
New loan originations funded of $764 million, up 15% over preceding Q4
•
New loan commitments during the quarter reaches a record $1.12 billion
•
Total loans receivable of $11.29 billion reflects a 2% increase linked quarter
•
Total deposits of $11.51 billion reflects a 6% increase over Q4 2017
•
Total assets increase to $14.51 billion, up 2% over Q4 2017


LOS ANGELES - April 17, 2018 - Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its three months ended March 31, 2018. Net income for the 2018 first quarter increased significantly to a record $51.2 million, or $0.38 per diluted common share, up 185% from $18.0 million, or $0.13 per diluted common share, for the 2017 fourth quarter(1) and up 41% from $36.2 million, or $0.27 per diluted common share, for the year-ago first quarter.

The significant improvements in net income reflect, among other things, the enactment of the Tax Cuts and Jobs Act (the “Tax Act”) on December 22, 2017, which lowered the corporate federal tax rate from 35% to 21% beginning in 2018.

“We are off to a strong start in 2018 with a first quarter performance that demonstrates the benefits of the recent tax reform, as well as many other positive operating trends,” said Kevin S. Kim, President and Chief Executive Officer. “Most notably, we had our strongest quarter ever in terms of loan production with a record $1.1 billion in new loan commitments and new loan disbursements of $764 million. We are also very pleased with the improved production mix of 45% commercial real estate, 31% C&I and 24% consumer, with the majority of our production this quarter coming from our non-CRE categories. We believe these results reflect the benefits of our investments over the last year in our C&I and residential mortgage platform and talent.

“Total deposits increased $664 million, or 6%, from year-end 2017, reflecting solid growth in all major deposit categories and a proactive effort to gather deposits ahead of the additional rate hikes expected this year. While it is expected that our funding costs will increase given the rising rate environment and competitive deposit market, we believe we are well positioned to mitigate the compression on our margin with higher loan volumes. All-in-all, our profitability metrics improved considerably with an ROA of 1.44% and an ROE of 10.61% for the 2018 first quarter, and we look forward to building on the momentum of our strong first quarter performance,” said Kim.
__________________

(1)
The Company's fourth quarter 2017 financial results included a one-time, non-cash, incremental income tax expense in the Company’s consolidated statements of income of $25.4 million resulting from the revaluation of its deferred tax assets and liabilities (the “DTA”) and low income housing tax credit (the “LIHTC”) investments due to the enactment of the Tax Act. Excluding the one-time, non-cash tax expense, net income for the 2017 fourth quarter would have been $43.4 million, or $0.32 per diluted common share. Net income and diluted earnings per share excluding tax reform adjustments are non-GAAP financial measures. A reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information.

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2-2-2    NASDAQ: HOPE


Financial Highlights
(dollars in thousands, except per share data) (unaudited)
At or for the Three Months Ended
 
3/31/2018
 
12/31/2017
 
3/31/2017
Net income
$
51,232

 
$
17,984

 
$
36,210

Diluted earnings per share
$
0.38

 
$
0.13

 
$
0.27

Tax reform adjustments:
 
 
 
 
 
 
 
 
    Deferred tax asset
$
—

 
$
23,835

 
$
—

    Investments in affordable housing partnerships
$
—

 
$
1,588

 
$
—

Net income, excluding tax reform adjustments (1)
$
51,232

 
$
43,407

 
$
36,210

Diluted earnings per share, excluding tax reform adjustments (1)
$
0.38

 
$
0.32

 
$
0.27

Net interest income before provision for loan losses
$
120,068

 
$
126,392

 
$
114,905

Net interest margin
 
3.66
%
 
 
3.84
%
 
 
3.77
%
Noninterest income
$
19,850

 
$
16,451

 
$
17,603

Noninterest expense
$
68,453

 
$
73,028

 
$
67,699

Net loans receivable
$
11,206,022

 
$
11,018,034

 
$
10,471,008

Deposits
$
11,510,569

 
$
10,846,609

 
$
10,703,777

Nonaccrual loans (2)
$
68,152

 
$
46,775

 
$
37,009

ALLL to loans receivable
 
0.77
%
 
 
0.76
%
 
 
0.75
%
ALLL to nonaccrual loans (2)
 
126.86
%
 
 
180.74
%
 
 
212.54
%
ALLL to nonperforming assets (2) (3)
 
61.71
%
 
 
67.51
%
 
 
74.65
%
Provision for loan losses
$
2,500

 
$
3,600

 
$
5,600

Net charge offs
$
580

 
$
2,692

 
$
6,284

Return on assets (“ROA”)
 
1.44
%
 
 
0.51
%
 
 
1.09
%
Return on equity (“ROE”)
 
10.61
%
 
 
3.70
%
 
 
7.75
%
Efficiency ratio
 
48.92
%
 
 
51.12
%
 
 
51.09
%

(1) Net income and diluted earnings per share excluding tax reform adjustments are non-GAAP financial measures. A reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information.
(2) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $21.9 million, $22.1 million and $15.2 million at March 31, 2018, December 31, 2017 and March 31, 2017, respectively.
(3) Nonperforming assets exclude purchased credit-impaired loans totaling $17.0 million, $18.1 million and $17.3 million at March 31, 2018, December 31, 2017 and March 31, 2017, respectively.

Operating Results for the 2018 First Quarter
 
The comparability of the Company’s operating results with past performance is impacted by acquisition accounting adjustments and merger-related expenses associated with past and current acquisitions. The Company provides the following supplemental information to facilitate a better understanding of financial performance. Net interest income and operating income for the three months ended March 31, 2018, December 31, 2017 and March 31, 2017 included the following pre-tax acquisition accounting adjustments and merger-related expenses associated with past and current acquisitions:

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(dollars in thousands) (unaudited)
Three Months Ended
 
3/31/2018
 
12/31/2017
 
3/31/2017
Accretion on purchased non-impaired loans
$
3,197

 
$
7,629

 
$
2,676

Accretion on purchased credit-impaired loans
 
5,772

 
 
5,167

 
 
5,348

Amortization of premium on low income housing tax credits
 
(84
)
 
 
(85
)
 
 
(84
)
Amortization of premium on acquired FHLB borrowings
 
347

 
 
353

 
 
441

Accretion of discount on acquired subordinated debt
 
(264
)
 
 
(263
)
 
 
(259
)
Amortization of premium on acquired time deposits and savings
 
1

 
 
3

 
 
3,476

Amortization of core deposit intangibles
 
(615
)
 
 
(675
)
 
 
(676
)
     Total acquisition accounting adjustments
$
8,354

 
$
12,129

 
$
10,922

Merger-related expenses
 
7

 
 
(12
)
 
 
(947
)
          Total
$
8,361

 
$
12,117

 
$
9,975


Net Interest Income. Net interest income before provision for loan losses for the 2018 first quarter totaled $120.1 million, compared with $126.4 million in the 2017 fourth quarter and $114.9 million in the year-ago first quarter. The decline in net interest income before provision for loan losses from the immediately preceding quarter largely reflects the recognition during the 2017 fourth quarter of approximately $3.0 million of additional accretion income related to acquired loans that was one-time in nature. No such benefit was recognized during the 2018 or 2017 first quarters. In addition, the Company noted that the 2018 first quarter had two fewer days of interest accrual when compared with the preceding fourth quarter.

The net interest margin (net interest income divided by average interest earning assets) for the 2018 first quarter declined 18 basis points to 3.66% from 3.84% in the 2017 fourth quarter and declined 11 basis points from 3.77% in the year-ago first quarter. The 2018 first quarter net interest margin was adversely impacted by the changes in the Company’s weighted average yield on loans and weighted average cost of deposits.

The weighted average yield on loans for the 2018 first quarter declined by 8 basis points to 5.04% from 5.12% in the 2017 fourth quarter, but increased 22 basis points when compared with the year-ago first quarter weighted average yield on loans of 4.82%. The decline in the weighted average yield on loans from the immediately preceding quarter largely reflects the impact of the previously mentioned additional accretion income. The increase in the weighted average yield on loans from the year-ago first quarter reflects the benefits of the increase in the fed funds rate in March, June and December of 2017 of 25 basis points each on the Company’s variable rate loan portfolio.

The weighted average cost of deposits for the 2018 first quarter increased 11 basis points to 0.91% from 0.80% in the 2017 fourth quarter and increased 36 basis points from 0.55% in the year-ago first quarter. The increases reflect the progressively competitive deposit market, as well as a modest shift in the mix to the higher-rate time deposits.

Noninterest Income. Noninterest income for the 2018 first quarter increased 21% to $19.9 million from $16.5 million in the 2017 fourth quarter and increased 13% from $17.6 million in the year-ago first quarter. The Company recognized net gains on sales of SBA loans of $3.5 million, $2.6 million and $3.3 million in the 2018 first quarter, 2017 fourth quarter and 2017 first quarter, respectively. Net gains on sales of residential mortgage loans amounted to $1.2 million, $1.3 million and $420,000 for the 2018 first quarter, 2017 fourth quarter and 2017 first quarter, respectively. The increase in other noninterest income for the first quarter of 2018 included $3.5 million of income recorded on certain equity investments held by the Company.

Noninterest Expense. Noninterest expense for the 2018 first quarter totaled $68.5 million, down 6% from $73.0 million in the preceding fourth quarter and up 1% from $67.7 million in the year-ago first quarter. As previously announced, the Company’s 2017 fourth quarter reflected elevated levels of noninterest expense due to several items, which were one-time or non-core in nature. Following an analysis of its LIHTC investments on an individual investment basis, the Company recognized a $3.3 million LIHTC impairment during the 2017 fourth quarter. 2017 fourth quarter noninterest expense also included $2.2 million of expenses related to special projects, as well as $1.0 million in expenses following an annual reassessment of the Company’s BOLI liabilities. The Company’s 2018 first quarter included $1.8 million of expenses related to special projects.

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Salaries and employee benefits expense of $39.4 million for the 2018 first quarter was relatively stable with $39.6 million in preceding fourth quarter, but increased 15% from $34.2 million in the prior-year first quarter. The total number of FTEs, excluding employees on leave, as of March 31, 2018 was 1,502, compared with 1,470 as of December 31, 2017 and 1,352 as of March 31, 2017.

Income Tax Provision. The effective tax rate for the 2018 first quarter was 25.7%, compared with 72.8% in the preceding fourth quarter and 38.8% in the 2017 first quarter. The significant improvement reflects the enactment of the Tax Act, which lowered the corporate federal tax rate from 35% to 21%. In addition, the Company recognized during the 2017 fourth quarter a $25.4 million charge related to the revaluation of its DTA and LIHTC investments as a result of the passage of the Tax Act. Excluding the $25.4 million charge, the effective tax rate for the 2017 fourth quarter would have been 34.4%.

Balance Sheet Summary
 
Loans receivable increased 2% to $11.29 billion at March 31, 2018 from $11.10 billion at December 31, 2017, reflecting a 7% annualized growth rate. Year-over-year, loans receivable increased 7% from $10.55 billion at March 31, 2017.

Total new loan originations funded during the 2018 first quarter increased to $764.3 million and included SBA loan production of $78.2 million and residential mortgage loan originations of $179.2 million. This compares with 2017 fourth quarter new loan originations funded of $663.5 million, which included SBA loan production of $66.7 million and residential mortgage loan originations of $193.0 million. In the year-ago first quarter, new loans originations funded totaled $587.4 million, including SBA loan production of $75.3 million and residential mortgage loan originations of $58.0 million.

Sales of SBA loans to the secondary market and gains derived from those sales are based substantially on the production of SBA 7(a) loans. SBA 7(a) loan originations totaled $73.9 million for the 2018 first quarter, compared with $66.7 million for the fourth quarter of 2017 and $51.9 million for the year-ago first quarter. During the 2018 first quarter, the Company sold $48.6 million of its SBA loans held for sale, compared with $36.6 million in the immediately preceding fourth quarter and $44.9 million in the first quarter a year ago.

Aggregate loan pay offs and pay downs in the 2018 first quarter increased to $411.6 million from $380.9 million for the immediately preceding fourth quarter but declined modestly from $414.6 million in the year-ago first quarter.

Total deposits at March 31, 2018 amounted to $11.51 billion, up 6% from $10.85 billion at December 31, 2017 and up 8% from $10.70 billion at March 31, 2017. Noninterest bearing demand deposits accounted for 26.5%, 27.6% and 27.7% of total deposits as of March 31, 2018, December 31, 2017 and March 31, 2017, respectively.

Credit Quality
 
The provision for loan and lease losses for the 2018 first quarter was $2.5 million, compared with $3.6 million for the immediately preceding 2017 fourth quarter and $5.6 million for the year-ago first quarter.

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


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5-5-5    NASDAQ: HOPE


The composition of the ALLL as of March 31, 2018, December 31, 2017 and March 31, 2017 is as follows:
(dollars in thousands) (unaudited)
3/31/2018
 
12/31/2017
 
3/31/2017
Legacy loans (1)
$
72,045
 
$
67,648
 
$
64,055
Purchased non-impaired loans (2)
 
2,601
 
 
4,853
 
 
2,468
Purchased credit-impaired loans (2)
 
11,815
 
 
12,040
 
 
12,136
Total ALLL
$
86,461
 
$
84,541
 
$
78,659
 
 
 
 
 
 
 
 
 
Loans receivable
$
11,292,483
 
$
11,102,575
 
$
10,549,667
ALLL coverage ratio
 
0.77
%
 
 
0.76
%
 
 
0.75
%

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

The Company defines nonperforming loans to include delinquent loans past due 90 days or more on nonaccrual status, delinquent loans past due 90 days or more on accrual status (excluding purchased credit-impaired loans) and accruing restructured loans. Nonaccrual loans at March 31, 2018 increased to $68.2 million, or 0.60% of loans receivable, from $46.8 million, or 0.42% of loans receivable, at December 31, 2017 and $37.0 million, or 0.35% of loans receivable at March 31, 2017. Accruing restructured loans amounted to $59.6 million at March 31, 2018, compared with $67.3 million at December 31, 2017 and $49.0 million at March 31, 2017. Total nonperforming loans at March 31, 2018 increased to $129.6 million, or 1.15% of loans receivable, from $114.4 million, or 1.03% of loans receivable December 31, 2017 and $86.3 million, or 0.82% of loans receivable at March 31, 2017.

Nonperforming assets, including nonperforming loans and OREO, totaled $140.1 million at March 31, 2018, compared with $125.2 million at December 31, 2017 and $105.4 million March 31, 2017. As a percentage of total assets, nonperforming assets was 0.97% at March 31, 2018, 0.88% at December 31, 2017 and 0.78% at March 31, 2017.
 
Following are the components of criticized loan balances as of March 31, 2018, December 31, 2017 and March 31, 2017:
(dollars in thousands) (unaudited)
3/31/2018
 
12/31/2017
 
3/31/2017
Special Mention (1)
$
196,082
 
$
214,891
 
$
225,967
Classified (1)
 
344,648
 
 
353,584
 
 
309,996
     Criticized
$
540,730
 
$
568,475
 
$
535,963

(1)
Balances include purchased loans which were marked to fair value on the date of acquisition.
 
For the 2018 first quarter, net charge offs totaled $580,000, or 0.02% of average loans receivable on an annualized basis. This compares with 2017 fourth quarter net charge offs of $2.7 million, or 0.10% of average loans receivable on an annualized basis, and $6.3 million, or 0.24% of average loans receivable on an annualized basis, for the year-ago first quarter.

The ALLL at March 31, 2018 was $86.5 million, or 0.77% of loans receivable (excluding loans held for sale), compared with $84.5 million, or 0.76% of loans receivable (excluding loans held for sale) at December 31, 2017 and $78.7 million, or 0.75% of loans receivable (excluding loans held for sale), at March 31, 2017. The coverage ratio of the ALLL to nonperforming loans (excluding purchased credit-impaired loans) was 66.69% at March 31, 2018, 73.88% at December 31, 2017 and 91.18% at March 31, 2017.
 
Impaired loans (defined as loans for which it is probable that not all principal and interest payments due will be collected in accordance with the contractual terms) totaled $128.1 at March 31, 2018, compared with $114.3 million at December 31, 2017 and $129.6 million at March 31, 2017.


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Capital
 
At March 31, 2018, the Company and the Bank continued to exceed all regulatory capital requirements to be generally classified as a “well-capitalized” financial institution, as summarized in the following table:
 
3/31/2018
 
12/31/2017
 
3/31/2017
 
Minimum Guideline for “Well-Capitalized” Institution
Common Equity Tier 1 Capital
12.35%
 
12.30%
 
12.22%
 
6.50%
Tier 1 Leverage Ratio
11.61%
 
11.54%
 
11.72%
 
5.00%
Tier 1 Risk-based Ratio
13.15%
 
13.11%
 
13.05%
 
8.00%
Total Risk-based Ratio
13.86%
 
13.82%
 
13.76%
 
10.00%


Tangible common equity per share and as a percentage of tangible assets are summarized in the following table:
 
3/31/2018
 
12/31/2017
 
3/31/2017
Tangible common equity per share (1)
$10.81
 
$10.68
 
$10.32
Tangible common equity per share, excluding tax reform adjustments (1)
$10.81
 
$10.87
 
$10.32
Tangible common equity to tangible assets (2)
10.44%
 
10.54%
 
10.74%

(1) 
Tangible common equity represents common equity less goodwill and net other intangible assets. Tangible common equity per share represents tangible common equity divided by the number of shares issued and outstanding. Both tangible common equity and tangible common equity per share are non-GAAP financial measures. The accompanying financial information includes a reconciliation of the Company’s total stockholders’ equity to tangible common equity, including and excluding tax reform adjustments.
(2) 
Tangible assets represent total assets less goodwill and net other intangible assets. Tangible common equity to tangible assets is the ratio of tangible common equity over tangible assets. Tangible common equity to tangible assets is a non-GAAP financial measure. The accompanying financial information includes a reconciliation of the Company’s total assets to tangible assets, including and excluding tax reform adjustments.

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

Investor Conference Call

The Company previously announced that it will host an investor conference call on Wednesday, April 18, 2018 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2018. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international), and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available in the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through April 25, 2018, replay access code 10118672.


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7-7-7    NASDAQ: HOPE


About Hope Bancorp, Inc.

Hope Bancorp, Inc. is the holding company of Bank of Hope, the first and only super regional Korean-American bank in the United States with $14.5 billion in total assets as of March 31, 2018. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 63 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Georgia and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City and Northern California; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com.

Forward-Looking Statements

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

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


# # #

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


Assets
3/31/2018
 
12/31/2017
 
% change
 
3/31/2017
 
% change
Cash and due from banks
$
612,353

 
$
492,000

 
24
 %
 
$
461,068

 
33
 %
Securities available for sale, at fair value
1,699,315

 
1,720,257

 
(1
)%
 
1,583,946

 
7
 %
Federal Home Loan Bank (“FHLB”) stock and other investments
107,906

 
83,142

 
30
 %
 
65,161

 
66
 %
Loans held for sale, at the lower of cost or fair value
33,689

 
29,661

 
14
 %
 
19,141

 
76
 %
Loans receivable
11,292,483

 
11,102,575

 
2
 %
 
10,549,667

 
7
 %
Allowance for loan losses
(86,461
)
 
(84,541
)
 
(2
)%
 
(78,659
)
 
(10
)%
  Net loans receivable
11,206,022

 
11,018,034

 
2
 %
 
10,471,008

 
7
 %
Accrued interest receivable
29,154

 
29,979

 
(3
)%
 
25,683

 
14
 %
Premises and equipment, net
56,564

 
56,714

 
—
 %
 
54,425

 
4
 %
Bank owned life insurance
75,302

 
74,915

 
1
 %
 
74,090

 
2
 %
Goodwill
464,450

 
464,450

 
—
 %
 
463,975

 
—
 %
Servicing assets
24,866

 
24,710

 
1
 %
 
25,941

 
(4
)%
Other intangible assets, net
15,907

 
16,523

 
(4
)%
 
18,550

 
(14
)%
Other assets
181,598

 
196,332

 
(8
)%
 
218,441

 
(17
)%
  Total assets
14,507,126

 
14,206,717

 
2
 %
 
13,481,429

 
8
 %
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Deposits
$
11,510,569

 
$
10,846,609

 
6
 %
 
$
10,703,777

 
8
 %
FHLB advances and fed funds purchased
862,346

 
1,227,593

 
(30
)%
 
703,850

 
23
 %
Subordinated debentures
101,117

 
100,853

 
—
 %
 
100,067

 
1
 %
Accrued interest payable
19,614

 
15,961

 
23
 %
 
10,592

 
85
 %
Other liabilities
68,147

 
87,446

 
(22
)%
 
85,096

 
(20
)%
  Total liabilities
12,561,793

 
12,278,462

 
2
 %
 
11,603,382

 
8
 %
 
 
 
 
 
 
 
 
 
 
Stockholders’ Equity
 
 
 
 
 
 
 
 
 
Common stock, $0.001 par value; authorized, 150,000,000 shares at March, 31, 2018, December, 31, 2017 and March, 31, 2017; issued and outstanding, 135,516,119, 135,511,891 and 135,248,185 at March, 31, 2018, December, 31, 2017 and March, 31, 2017, respectively
$
136

 
$
136

 
—
 %
 
$
135

 
1
 %
Capital surplus
1,405,806

 
1,405,014

 
—
 %
 
1,401,275

 
—
 %
Retained earnings
578,031

 
544,886

 
6
 %
 
489,486

 
18
 %
Accumulated other comprehensive loss, net
(38,640
)
 
(21,781
)
 
(77
)%
 
(12,849
)
 
(201
)%
  Total stockholders’ equity
1,945,333

 
1,928,255

 
1
 %
 
1,878,047

 
4
 %
  Total liabilities and stockholders’ equity
$
14,507,126

 
$
14,206,717

 
2
 %
 
$
13,481,429

 
8
 %






Table Page 1
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)



 
Three Months Ended
 
3/31/2018
 
12/31/2017
 
% change
 
3/31/2017
 
% change
Interest income:
 
 
 
 
 
 
 
 
 
  Interest and fees on loans
$
137,943

 
$
141,129

 
(2
)%
 
$
123,294

 
12
 %
  Interest on securities
10,101

 
10,523

 
(4
)%
 
8,113

 
25
 %
  Interest on federal funds sold and other investments
2,366

 
1,533

 
54
 %
 
1,336

 
77
 %
    Total interest income
150,410

 
153,185

 
(2
)%
 
132,743

 
13
 %
 
 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
 
  Interest on deposits
24,849

 
21,901

 
13
 %
 
14,511

 
71
 %
  Interest on other borrowings
5,493

 
4,892

 
12
 %
 
3,327

 
65
 %
    Total interest expense
30,342

 
26,793

 
13
 %
 
17,838

 
70
 %
 
 
 
 
 
 
 
 
 
 
Net interest income before provision for loan losses
120,068

 
126,392

 
(5
)%
 
114,905

 
4
 %
Provision for loan losses
2,500

 
3,600

 
(31
)%
 
5,600

 
(55
)%
Net interest income after provision for loan losses
117,568

 
122,792

 
(4
)%
 
109,305

 
8
 %
 
 
 
 
 
 
 
 
 
 
Noninterest income:
 
 
 
 
 
 
 
 
 
  Service fees on deposit accounts
4,801

 
4,951

 
(3
)%
 
5,338

 
(10
)%
  Net gains on sales of SBA loans
3,450

 
2,626

 
31
 %
 
3,250

 
6
 %
  Net gains on sales of other loans
1,196

 
1,308

 
(9
)%
 
420

 
185
 %
  Net gains on sales of securities available for sale
—

 
301

 
(100
)%
 
—

 


  Other income and fees
10,403

 
7,265

 
43
 %
 
8,595

 
21
 %
    Total noninterest income
19,850

 
16,451

 
21
 %
 
17,603

 
13
 %
 
 
 
 
 
 
 
 
 
 
Noninterest expense:
 
 
 
 
 
 
 
 
 
  Salaries and employee benefits
39,385

 
39,570

 
—
 %
 
34,166

 
15
 %
  Occupancy
7,239

 
7,108

 
2
 %
 
7,194

 
1
 %
  Furniture and equipment
3,721

 
4,032

 
(8
)%
 
3,413

 
9
 %
  Advertising and marketing
2,299

 
2,246

 
2
 %
 
3,424

 
(33
)%
  Data processing and communications
3,495

 
2,676

 
31
 %
 
3,606

 
(3
)%
  Professional fees
3,106

 
4,553

 
(32
)%
 
3,902

 
(20
)%
  FDIC assessment
1,767

 
1,897

 
(7
)%
 
1,010

 
75
 %
  Credit related expenses
772

 
1,073

 
(28
)%
 
1,883

 
(59
)%
  Other real estate owned (“OREO”) expense, net
(104
)
 
237

 
N/A

 
997

 
N/A

  Merger-related expenses
(7
)
 
12

 
N/A

 
947

 
N/A

  Other
6,780

 
9,624

 
(30
)%
 
7,157

 
(5
)%
    Total noninterest expense
68,453

 
73,028

 
(6
)%
 
67,699

 
1
 %
Income before income taxes
68,965

 
66,215

 
4
 %
 
59,209

 
16
 %
Income tax provision
17,733

 
48,231

 
(63
)%
 
22,999

 
(23
)%
Net income
$
51,232

 
$
17,984

 
185
 %
 
$
36,210

 
41
 %
 
 
 
 
 
 
 
 
 
 
Earnings Per Common Share:
 
 
 
 
 
 
 
 
 
  Basic
$
0.38

 
$
0.13

 

 
$
0.27

 
 
  Diluted
$
0.38

 
$
0.13

 

 
$
0.27

 
 
 
 
 
 
 
 
 
 
 
 
Average Shares Outstanding:
 
 
 
 
 
 
 
 
 
  Basic
135,518,705

 
135,505,041

 
 
 
135,248,018

 
 
  Diluted
135,815,262

 
135,752,978

 
 
 
135,768,645

 
 

Table Page 2
Hope Bancorp, Inc.
Selected Financial Data
Unaudited


 
For the Three Months Ended
(Annualized)
Profitability measures:
3/31/2018
 
12/31/2017
 
3/31/2017
  ROA
1.44
%
 
0.51
%
 
1.09
%
  ROE
10.61
%
 
3.70
%
 
7.75
%
  Return on average tangible equity 1
14.13
%
 
4.92
%
 
10.44
%
  Net interest margin
3.66
%
 
3.84
%
 
3.77
%
  Efficiency ratio
48.92
%
 
51.12
%
 
51.09
%
 
 
 
 
 
 
1 Average tangible equity is calculated by subtracting average goodwill and average core deposit intangible assets from average stockholders’ equity. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position.
 


Table Page 3
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)


 
Three Months Ended
 
Three Months Ended
 
Three Months Ended
 
3/31/2018
 
12/31/2017
 
3/31/2017
 
 
 
Interest
 
Annualized
 
 
 
Interest
 
Annualized
 
 
 
Interest
 
Annualized
 
Average
 
Income/
 
Average
 
Average
 
Income/
 
Average
 
Average
 
Income/
 
 Average
 
Balance
 
Expense
 
Yield/Cost
 
Balance
 
Expense
 
Yield/Cost
 
Balance
 
Expense
 
 Yield/Cost
INTEREST EARNING ASSETS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Loans receivable, including loans held for sale
$
11,095,864

 
$
137,943

 
5.04
%
 
$
10,931,523

 
$
141,129

 
5.12
%
 
$
10,381,771

 
$
123,294

 
4.82
%
    Securities available for sale
1,673,122

 
10,101

 
2.45
%
 
1,794,260

 
10,523

 
2.33
%
 
1,567,497

 
8,113

 
2.10
%
    FHLB stock and other investments
517,572

 
2,366

 
1.85
%
 
345,363

 
1,533

 
1.76
%
 
423,955

 
1,336

 
1.28
%
Total interest earning assets
$
13,286,558

 
$
150,410

 
4.59
%
 
$
13,071,146

 
$
153,185

 
4.65
%
 
$
12,373,223

 
$
132,743

 
4.35
%
 
 
 
 
   
 
 
 
 
 
   
 
 
 
 
 
 
 
INTEREST BEARING LIABILITIES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Demand, interest bearing
$
3,402,760

 
$
8,864

 
1.06
%
 
$
3,538,995

 
$
8,564

 
0.96
%
 
$
3,436,984

 
$
7,191

 
0.85
%
    Savings
236,216

 
424

 
0.73
%
 
241,667

 
439

 
0.72
%
 
293,609

 
287

 
0.40
%
    Time deposits
4,525,813

 
15,561

 
1.39
%
 
4,072,565

 
12,898

 
1.26
%
 
4,009,179

 
7,033

 
0.71
%
    Total interest bearing deposits
8,164,789

 
24,849

 
1.23
%
 
7,853,227

 
21,901

 
1.11
%
 
7,739,772

 
14,511

 
0.76
%
    FHLB advances and fed funds purchased
974,071

 
4,069

 
1.69
%
 
1,003,951

 
3,531

 
1.40
%
 
662,472

 
2,139

 
1.31
%
    Subordinated debentures
97,049

 
1,424

 
5.87
%
 
96,786

 
1,361

 
5.50
%
 
95,911

 
1,188

 
4.95
%
Total interest bearing liabilities
9,235,909

 
$
30,342

 
1.33
%
 
8,953,964

 
$
26,793

 
1.19
%
 
8,498,155

 
$
17,838

 
0.85
%
Noninterest bearing demand deposits
2,941,577

 
 
 
 
 
3,029,958

 
 
 
 
 
2,868,339

 
 
 
 
Total funding liabilities/cost of funds
$
12,177,486

 
 
 
1.01
%
 
$
11,983,922

 
 
 
0.89
%
 
$
11,366,494

 
 
 
0.64
%
Net interest income/net interest spread
 
 
$
120,068

 
3.26
%
 
 
 
$
126,392

 
3.46
%
 
 
 
$
114,905

 
3.50
%
Net interest margin
 
 
 
 
3.66
%
 
 
 
 
 
3.84
%
 
 
 
 
 
3.77
%
Cost of deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Noninterest bearing demand deposits
$
2,941,577

 
 
 
 
 
$
3,029,958

 
 
 
 
 
$
2,868,339

 
 
 
 
    Interest bearing deposits
8,164,789

 
24,849

 
1.23
%
 
7,853,227

 
21,901

 
1.11
%
 
7,739,772

 
14,511

 
0.76
%
Total deposits
$
11,106,366

 
$
24,849

 
0.91
%
 
$
10,883,185

 
$
21,901

 
0.80
%
 
$
10,608,111

 
$
14,511

 
0.55
%

 
 
 
 
 
 
 
 
 
 
 
 


Table Page 4
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)


 
 Three Months Ended
AVERAGE BALANCES:
3/31/2018
 
12/31/2017
 
% change
 
3/31/2017
 
% change
Loans receivable, including loans held for sale
$
11,095,864

 
$
10,931,523

 
2
 %
 
$
10,381,771

 
7
 %
Investments
2,190,694

 
2,139,623

 
2
 %
 
1,991,452

 
10
 %
Interest earning assets
13,286,558

 
13,071,146

 
2
 %
 
12,373,223

 
7
 %
Total assets
14,214,510

 
14,043,102

 
1
 %
 
13,335,727

 
7
 %
 
 
 
 
 
 
 
 
 
 
Interest bearing deposits
8,164,789

 
7,853,227

 
4
 %
 
7,739,772

 
5
 %
Interest bearing liabilities
9,235,909

 
8,953,964

 
3
 %
 
8,498,155

 
9
 %
Noninterest bearing demand deposits
2,941,577

 
3,029,958

 
(3
)%
 
2,868,339

 
3
 %
Stockholders’ equity
1,931,290

 
1,944,404

 
(1
)%
 
1,868,998

 
3
 %
Net interest earning assets
4,050,649

 
4,117,182

 
(2
)%
 
3,875,068

 
5
 %
 
 
 
 
 
 
 
 
 
 
LOAN PORTFOLIO COMPOSITION:
3/31/2018
 
12/31/2017
 
% change
 
3/31/2017
 
% change
Commercial loans
$
2,007,686

 
$
1,947,533

 
3
 %
 
$
1,840,193

 
9
 %
Real estate loans
8,529,153

 
8,508,222

 
—
 %
 
8,291,188

 
3
 %
Consumer and other loans
755,621

 
647,102

 
17
 %
 
420,169

 
80
 %
    Loans outstanding
11,292,460

 
11,102,857

 
2
 %
 
10,551,550

 
7
 %
Unamortized deferred loan fees - net of costs
23

 
(282
)
 
N/A

 
(1,883
)
 
N/A

    Loans, net of deferred loan fees and costs
11,292,483

 
11,102,575

 
2
 %
 
10,549,667

 
7
 %
Allowance for loan losses
(86,461
)
 
(84,541
)
 
2
 %
 
(78,659
)
 
10
 %
    Loan receivable, net
$
11,206,022

 
$
11,018,034

 
2
 %
 
$
10,471,008

 
7
 %
 
 
 
 
 
 
 
 
 
 
REAL ESTATE LOANS BY PROPERTY TYPE:
3/31/2018
 
12/31/2017
 
% change
 
3/31/2017
 
% change
Retail buildings
$
2,342,086

 
$
2,375,588

 
(1
)%
 
$
2,213,627

 
6
 %
Hotels/motels
1,637,416

 
1,631,314

 
—
 %
 
1,593,758

 
3
 %
Gas stations/car washes
978,454

 
964,246

 
1
 %
 
938,158

 
4
 %
Mixed-use facilities
651,473

 
624,401

 
4
 %
 
596,074

 
9
 %
Warehouses
934,389

 
915,465

 
2
 %
 
899,009

 
4
 %
Multifamily
445,930

 
455,463

 
(2
)%
 
443,632

 
1
 %
Other
1,539,405

 
1,541,745

 
—
 %
 
1,606,930

 
(4
)%
Total
$
8,529,153

 
$
8,508,222

 
—
 %
 
$
8,291,188

 
3
 %
 
 
 
 
 
 
 
 
 
 
DEPOSIT COMPOSITION
3/31/2018
 
12/31/2017
 
% change
 
3/31/2017
 
% change
  Noninterest bearing demand deposits
$
3,048,181

 
$
2,998,734

 
2
 %
 
$
2,963,947

 
3
 %
  Money market and other
3,454,660

 
3,332,703

 
4
 %
 
3,481,231

 
(1
)%
  Saving deposits
233,014

 
240,509

 
(3
)%
 
289,924

 
(20
)%
  Time deposits
4,774,714

 
4,274,663

 
12
 %
 
3,968,675

 
20
 %
    Total deposit balances
$
11,510,569

 
$
10,846,609

 
6
 %
 
$
10,703,777

 
8
 %
 
 
 
 
 
 
 
 
 
 
DEPOSIT COMPOSITION (%)
3/31/2018
 
12/31/2017
 
 
 
3/31/2017
 
 
  Noninterest bearing demand deposits
26.5
%
 
27.6
%
 
 
 
27.7
%
 
 
  Money market and other
30.0
%
 
30.7
%
 
 
 
32.5
%
 
 
  Saving deposits
2.0
%
 
2.2
%
 
 
 
2.7
%
 
 
  Time deposits
41.5
%
 
39.5
%
 
 
 
37.1
%
 
 
    Total deposit balances
100.0
%
 
100.0
%
 
 
 
100.0
%
 
 


Table Page 5
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)



CAPITAL RATIOS:
3/31/2018
 
12/31/2017
 
3/31/2017
 
 
 
 
  Total stockholders’ equity
$
1,945,333

 
$
1,928,255

 
$
1,878,047

 
 
 
 
  Common Equity Tier 1 ratio
12.35
%
 
12.30
%
 
12.22
%
 
 
 
 
  Tier 1 risk-based capital ratio
13.15
%
 
13.11
%
 
13.05
%
 
 
 
 
  Total risk-based capital ratio
13.86
%
 
13.82
%
 
13.76
%
 
 
 
 
  Tier 1 leverage ratio
11.61
%
 
11.54
%
 
11.72
%
 
 
 
 
  Total risk weighted assets
$
12,172,708

 
$
11,965,215

 
11,571,354

 
 
 
 
  Book value per common share
$
14.35

 
$
14.23

 
$
13.89

 
 
 
 
  Tangible common equity to tangible assets 2
10.44
%
 
10.54
%
 
10.74
%
 
 
 
 
  Tangible common equity per share 2
$
10.81

 
$
10.68

 
$
10.32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and core deposit intangible assets, net divided by total assets less goodwill and core deposit intangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company’s capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP financial measures to non-GAAP financial measures:
 
 
 
 
 
Three Months Ended
 
 
 
3/31/2018
 
12/31/2017
 
3/31/2017
 
 
 
 
TANGIBLE COMMON EQUITY
 
 
 
 
 
 
 
 
 
Total stockholders’ equity
$
1,945,333

 
$
1,928,255

 
$
1,878,047

 
 
 
 
Less: Goodwill and core deposit intangible assets, net
(480,357
)
 
(480,973
)
 
(482,525
)
 
 
 
 
Tangible common equity
$
1,464,976

 
$
1,447,282

 
$
1,395,522

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
14,507,126

 
$
14,206,717

 
$
13,481,429

 
 
 
 
Less: Goodwill and core deposit intangible assets, net
(480,357
)
 
(480,973
)
 
(482,525
)
 
 
 
 
Tangible assets
$
14,026,769

 
$
13,725,744

 
$
12,998,904

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding
135,516,119

 
135,511,891

 
135,248,185

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Tangible common equity to tangible assets
10.44
%
 
10.54
%
 
10.74
%
 
 
 
 
  Tangible common equity per share
$
10.81

 
$
10.68

 
$
10.32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
EPS EXCLUDING TAX REFORM ADJUSTMENTS
03/31/2018
 
12/31/2017
 
3/31/2017
 
 
 
 
Net income
$
51,232

 
$
17,984

 
$
36,210

 
 
 
 
Add back tax reform adjustments:
 
 
 
 
 
 
 
 
 
Deferred tax asset
—

 
23,835

 
—

 
 
 
 
Investments in affordable housing partnerships
—

 
1,588

 
—

 
 
 
 
Net income, excluding tax reform adjustments
$
51,232

 
$
43,407

 
$
36,210

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average diluted common shares
135,815,262

 
135,752,978

 
135,768,645

 
 
 
 
Diluted EPS, excluding tax reform adjustments
$
0.38

 
$
0.32

 
$
0.27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Table Page 6
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)



 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY PER SHARE EXCLUDING TAX REFORM ADJUSTMENTS
3/31/2018
 
12/31/2017
 
9/30/2017
 
 
 
 
Tangible common equity
$
1,464,976

 
$
1,447,282

 
$
1,395,522

 
 
 
 
Add back tax reform adjustments:
 
 
 
 
 
 
 
 
 
Deferred tax asset
—

 
23,835

 
—

 
 
 
 
Investments in affordable housing partnerships
—

 
1,588

 
—

 
 
 
 
Tangible common equity, excluding tax reform adjustments
$
1,464,976

 
$
1,472,705

 
$
1,395,522

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding
135,516,119

 
135,511,891

 
135,248,185

 
 
 
 
Tangible common equity per share, excluding tax reform adjustments
$
10.81

 
$
10.87

 
$
10.32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
ALLOWANCE FOR LOAN LOSSES:
3/31/2018
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
Balance at beginning of period
$
84,541

 
$
83,633

 
$
80,074

 
$
78,659

 
$
79,343

Provision for loan losses
2,500

 
3,600

 
5,400

 
2,760

 
5,600

Recoveries
488

 
1,078

 
3,072

 
777

 
321

Charge offs
(1,068
)
 
(3,770
)
 
(4,913
)
 
(2,122
)
 
(6,605
)
Balance at end of period
$
86,461

 
$
84,541

 
$
83,633

 
$
80,074

 
$
78,659

Net charge offs/average loans receivable (annualized)
0.02
%
 
0.10
%
 
0.07
%
 
0.05
%
 
0.24
%
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
NET CHARGED OFF (RECOVERED) LOANS BY TYPE:
3/31/2018
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
Real estate loans
$
(37
)
 
$
342

 
$
314

 
$
830

 
$
1,444

Commercial loans
291

 
2,170

 
1,293

 
276

 
4,564

Consumer loans
326

 
180

 
234

 
239

 
276

   Total net charge offs
$
580

 
$
2,692

 
$
1,841

 
$
1,345

 
$
6,284



Table Page 7
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)


NONPERFORMING ASSETS
3/31/2018
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
Delinquent loans on nonaccrual status 3
$
68,152

 
$
46,775

 
$
43,323

 
$
47,361

 
$
37,009

Delinquent loans 90 days or more on accrual status 4
1,894

 
407

 
407

 
1,850

 
275

Accruing troubled debt restructured loans
59,596

 
67,250

 
64,807

 
53,290

 
48,984

Total nonperforming loans
129,642

 
114,432

 
108,537

 
102,501

 
86,268

Other real estate owned
10,463

 
10,787

 
17,208

 
21,839

 
19,096

Total nonperforming assets
$
140,105

 
$
125,219

 
$
125,745

 
$
124,340

 
$
105,364

Nonperforming assets/total assets
0.97
%
 
0.88
%
 
0.89
%
 
0.90
%
 
0.78
%
Nonperforming assets/loans receivable & OREO
1.24
%
 
1.13
%
 
1.15
%
 
1.15
%
 
1.00
%
Nonperforming assets/total capital
7.20
%
 
6.49
%
 
6.50
%
 
6.52
%
 
5.61
%
Nonperforming loans/loans receivable
1.15
%
 
1.03
%
 
0.99
%
 
0.95
%
 
0.82
%
Nonaccrual loans/loans receivable
0.60
%
 
0.42
%
 
0.40
%
 
0.44
%
 
0.35
%
Allowance for loan losses/loans receivable
0.77
%
 
0.76
%
 
0.76
%
 
0.74
%
 
0.75
%
Allowance for loan losses/nonaccrual loans
126.86
%
 
180.74
%
 
193.05
%
 
169.07
%
 
212.54
%
Allowance for loan losses/nonperforming loans
66.69
%
 
73.88
%
 
77.05
%
 
78.12
%
 
91.18
%
Allowance for loan losses/nonperforming assets
61.71
%
 
67.51
%
 
66.51
%
 
64.40
%
 
74.65
%
 
 
 
 
 
 
 
 
 
 
3    Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $21.9 million, $22.1 million, $21.5 million, $15.5 million, and $15.2 million at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively.
4    Excludes Acquired Credit Impaired Loans that are delinquent 90 or more days totaling $17.0 million, $18.1 million, $20.4 million, $16.3 million, and $17.3 million at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively.
 
 
 
 
 
 
 
 
 
 
BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS BY TYPE:
3/31/2018
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
Retail buildings
$
8,034

 
$
8,183

 
$
6,807

 
$
6,396

 
$
5,794

Hotels/motels
1,265

 
1,273

 
1,279

 
1,287

 
1,300

Gas stations/car washes
—

 
—

 
—

 
—

 
—

Mixed-use facilities
2,852

 
129

 
131

 
133

 
134

Warehouses
7,615

 
5,577

 
5,185

 
5,253

 
5,321

Other 5
39,830

 
52,088

 
51,405

 
40,221

 
36,435

Total
$
59,596

 
$
67,250

 
$
64,807

 
$
53,290

 
$
48,984

 
 
 
 
 
 
 
 
 
 
5 Includes commercial business and other loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE
3/31/2018
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
Legacy
 
 
 
 
 
 
 
 
 
30 - 59 days
$
22,126

 
$
16,092

 
$
8,857

 
$
5,910

 
$
10,198

60 - 89 days
2,102

 
1,724

 
3,572

 
11,740

 
3,978

   Total
$
24,228

 
$
17,816

 
$
12,429

 
$
17,650

 
$
14,176

 
 
 
 
 
 
 
 
 
 
Acquired
 
 
 
 
 
 
 
 
 
30 - 59 days
$
9,158

 
$
4,242

 
$
1,429

 
$
6,373

 
$
5,249

60 - 89 days
1,011

 
1,895

 
1,687

 
996

 
1,007

   Total
$
10,169

 
$
6,137

 
$
3,116

 
$
7,369

 
$
6,256

 
 
 
 
 
 
 
 
 
 
   Total delinquent loans 30-89 days past due
$
34,397

 
$
23,953

 
$
15,545

 
$
25,019

 
$
20,433

 
 
 
 
 
 
 
 
 
 

Table Page 8
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)


DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE
3/31/2018
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
Legacy
 
 
 
 
 
 
 
 
 
Real estate loans
$
12,272

 
$
9,008

 
$
7,850

 
$
14,126

 
$
12,575

Commercial loans
1,994

 
1,302

 
3,771

 
3,333

 
1,404

Consumer loans
9,962

 
7,506

 
808

 
191

 
198

   Total delinquent loans 30-89 days past due - legacy
$
24,228

 
$
17,816

 
$
12,429

 
$
17,650

 
$
14,177

 
 
 
 
 
 
 
 
 
 
Acquired
 
 
 
 
 
 
 
 
 
Real estate loans
$
7,537

 
$
3,937

 
$
2,323

 
$
5,786

 
$
5,211

Commercial loans
2,280

 
1,244

 
793

 
1,519

 
360

Consumer loans
352

 
956

 
—

 
64

 
684

   Total delinquent loans 30-89 days past due - acquired
$
10,169

 
$
6,137

 
$
3,116

 
$
7,369

 
$
6,255

 
 
 
 
 
 
 
 
 
 
   Total delinquent loans 30-89 days past due
$
34,397

 
$
23,953

 
$
15,545

 
$
25,019

 
$
20,432

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONACCRUAL LOANS BY TYPE
3/31/2018
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
Real estate loans
$
37,093

 
$
22,194

 
$
31,453

 
$
33,503

 
$
26,550

Commercial loans
29,446

 
23,099

 
10,682

 
12,874

 
10,117

Consumer loans
1,613

 
1,482

 
1,188

 
984

 
342

   Total nonaccrual loans
$
68,152

 
$
46,775

 
$
43,323

 
$
47,361

 
$
37,009

 
 
 
 
 
 
 
 
 
 
CRITICIZED LOANS
3/31/2018
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
Legacy
 
 
 
 
 
 
 
 
 
Special mention
$
140,588

 
$
151,413

 
$
131,785

 
$
152,373

 
$
127,431

Substandard
180,631

 
179,795

 
197,993

 
177,097

 
167,748

Doubtful
108

 
—

 
216

 
2,208

 
233

Loss
—

 
—

 
—

 
—

 
—

   Total criticized loans - legacy
$
321,327

 
$
331,208

 
$
329,994

 
$
331,678

 
$
295,412

 
 
 
 
 
 
 
 
 
 
Acquired
 
 
 
 
 
 
 
 
 
Special mention
$
55,494

 
$
63,478

 
$
93,443

 
$
98,684

 
$
98,536

Substandard
163,429

 
173,427

 
148,615

 
134,474

 
139,964

Doubtful
477

 
362

 
1,285

 
1,660

 
2,051

Loss
3

 
—

 
—

 
—

 
—

   Total criticized loans - acquired
$
219,403

 
$
237,267

 
$
243,343

 
$
234,818

 
$
240,551

 
 
 
 
 
 
 
 
 
 
   Total criticized loans
$
540,730

 
$
568,475

 
$
573,337

 
$
566,496

 
$
535,963





Table Page 9