hope-20220418

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)


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

Delaware

000-50245

95-4849715

(State of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

3200 Wilshire Boulevard, Suite 1400

Los Angeles, California 90010

(Address of principal executives offices, including zip code)

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

Common Stock

par value $0.001 per share

HOPE

NASDAQ Global Select Market

(Title of class)

(Trading Symbol)

(Name of exchange on which registered)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On April 18, 2022, Hope Bancorp, Inc. (“HOPE” or the “Company”) issued a news release concerning its results of operations and financial condition for the three months ended and as of March 31, 2022. A copy of the April 18, 2022 news release is furnished as Exhibit 99.1 and incorporated herein by reference.

The information furnished under Item 2.02, Item 7.01 and certain exhibits under Item 9.01 of this Current Report on Form 8-K (including Exhibits 99.1 and 99.4 to this Current Report on Form 8-K) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act of 1933 or the Exchange Act, except as shall be set forth as a specific reference in such filing.

Item 7.01. Regulation FD Disclosure

The Company previously announced that it will host an investor conference call on Tuesday, April 19, 2022 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2022. A presentation to accompany the conference call, which contains certain historical and forward-looking information relating to the Company (the “Presentation Materials”), has been made available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. A copy of the Presentation Materials is furnished as Exhibit 99.3 and incorporated herein by reference.

Item 8.01 Other Events.

On April 18, 2022, the Company issued a news release announcing that its Board of Directors declared a quarterly cash dividend of $0.14 per common share. The cash dividend is payable on or about May 12, 2022 to all stockholders of record as of the close of business on April 28, 2022. A copy of the April 18, 2022 news release is attached hereto as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits

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


		HOPE BANCORP, INC.

Date: April 18, 2022	By:	/s/ Kevin S. Kim
		Kevin S. Kim
		Chairman, President and Chief Executive Officer

HOPE BANCORP REPORTS 2022 FIRST QUARTER FINANCIAL RESULTS

LOS ANGELES - April 18, 2022 - Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its first quarter ended March 31, 2022.

For the three months ended March 31, 2022, net income increased 18% to $60.7 million, or $0.50 per diluted common share, from $51.6 million, or $0.43 per diluted common share, in the 2021 fourth quarter and increased 39% from $43.7 million, or $0.35 per diluted common share, in the year-ago first quarter.

“For the three months ended March 31, 2022, we delivered a strong quarter of profitability that is reflective of the strategic actions taken in 2021,” said Kevin S. Kim, Chairman, President and Chief Executive Officer. “As expected, our asset quality improved materially with criticized loan balances declining 21% from year-end 2021. Together with a large recovery from a previously charged off loan, we recorded an $11.0 million negative provision for credit losses while at the same time further strengthening our reserves.

“The momentum in our business development efforts continued to build with record first quarter production volume of $1.03 billion, which resulted in 6.7% growth in loans receivable on an annualized basis, excluding PPP loans. Given the increased productivity of our larger banking teams and our more diversified areas of lending expertise, we believe we are well positioned to deliver a very strong year of new loan production that will ultimately lead to enhanced growth in earnings and shareholder returns,” said Kim.

•Loan originations totaled $1.03 billion, a record first quarter high and representing a 21% increase over the previous first quarter record set in 2021.

•Excluding PPP, loans receivable increased 6.7% quarter-over-quarter on an annualized basis.

•Company recorded net recoveries of $17.9 million, reflecting additional recoveries related to a large relationship previously charged off during the 2021 third quarter.

•Asset quality improved meaningfully quarter-over-quarter with total nonperforming assets decreasing 8.4% and criticized loans decreasing 21.2%.

•Company recorded a negative provision for credit losses of $11.0 million, reflecting significant reductions in criticized loans and a large net recovery.

•Net interest margin expanded 8 basis points from the fourth quarter of 2021.

•Net income increased 18% quarter-over-quarter to $60.7 million, or $0.50 per diluted common share.

•Total cost of deposits relatively stable, up 1 basis point quarter-over-quarter.

•Noninterest expenses continued to be well managed with efficiency ratio of 51.50% and noninterest expense to average assets of 1.70%.

Financial Highlights


(dollars in thousands, except per share data) (unaudited)	At or for the Three Months Ended
	3/31/2022			12/31/2021			3/31/2021
Net income	$	60,738		$	51,623		$	43,687
Diluted earnings per share	$	0.50		$	0.43		$	0.35
Pre-provision net revenue (1)	$	70,989		$	72,179		$	60,952
Net interest income before (credit) provision for credit losses	$	133,176		$	133,318		$	122,579
Net interest margin		3.21	%		3.13	%		3.06	%
Noninterest income	$	13,186		$	13,097		$	8,804
Noninterest expense	$	75,373		$	74,236		$	70,431
Net loans receivable	$	13,919,224		$	13,812,193		$	13,494,686
Deposits	$	14,515,128		$	15,040,450		$	14,301,269
Total cost of deposits		0.24	%		0.23	%		0.36	%
Nonaccrual loans(2)	$	52,717		$	54,616		$	109,858
Nonperforming loans to loans receivable(2)		0.71	%		0.78	%		1.11	%
ACL to loans receivable		1.05	%		1.01	%		1.52	%
ACL to nonaccrual loans(2)		279.70	%		257.34	%		189.28	%
ACL to nonperforming assets(2)		144.03	%		125.76	%		121.94	%
(Credit) provision for credit losses	$	(11,000)		$	1,500		$	3,300
Net (recoveries) charge offs	$	(17,900)		$	(2,276)		$	2,098
Return on average assets (“ROA”)		1.37	%		1.16	%		1.02	%
Return on average equity (“ROE”)		11.62	%		9.93	%		8.53	%
Return on average tangible common equity (“ROTCE”)(1)		15.01	%		12.85	%		11.11	%
Noninterest expense / average assets		1.70	%		1.67	%		1.65	%
Efficiency ratio		51.50	%		50.70	%		53.61	%

(1) Pre-provision net revenue and return on average tangible common equity are non-GAAP financial measures. Management’s reasons and purposes for using these non-GAAP financial measures are set forth on Page 6 of this earnings release. A quantitative reconciliation of the Company’s GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 9.

(2) Excludes delinquent SBA loans that are guaranteed and currently in liquidation.

Operating Results for the 2022 First Quarter

Net interest income before provision for credit losses for the 2022 first quarter was stable at $133.2 million, compared with $133.3 million in the 2021 fourth quarter, but increased 9% from $122.6 million in the 2021 first quarter. The Company attributed the year-over-year increase to higher interest income due to higher average balances of loans receivable and investment securities and lower interest expense on deposits.

The net interest margin for the 2022 first quarter increased 8 basis points to 3.21% from 3.13% in the preceding fourth quarter and increased 15 basis points from 3.06% in the year-ago first quarter, primarily due to a decrease in interest earning cash which was used to fund a portion of the increase in average loan balances.

The weighted average yield on loans for the 2022 first quarter was 3.88%, compared with 3.95% in the 2021 fourth quarter. The Company attributed the quarter-over-quarter decrease in weighted average yield on loans to the impact of lower interest income related to SBA PPP loans and lower purchase accounting accretion. The weighted average yield on loans for the 2021 first quarter was 3.94%.

The weighted average cost of deposits for the 2022 first quarter increased slightly by 1 basis point to 0.24% from 0.23% in the 2021 fourth quarter, primarily reflecting a lower mix of noninterest bearing demand deposits. Compared with the year-ago first quarter, the weighted average cost of deposits for the 2022 first quarter decreased 12 basis points from 0.36%, largely reflecting a 37 basis point reduction in the cost of time deposits and a significantly improved mix of deposits with time deposits accounting for 15.2% of total deposits at March 31, 2022, versus 24.9% at March 31, 2021.

Noninterest income for the 2022 first quarter increased 1% to $13.2 million from $13.1 million in the 2021 fourth quarter, reflecting higher net gain on sale of SBA loans, largely offset by lower other income and fees, which included quarter-over-quarter decreases in equity investment fair values, dividend income from equity investments and swap fee income. During the 2022 first quarter, the Company sold $58.1 million in the guaranteed portion of SBA 7(a) loans, compared with $41.0 million in the preceding fourth quarter. Noninterest income for the 2022 first quarter increased 50% over $8.8 million in the first quarter of 2021 due to the absence of SBA loan sales to the secondary market in the first quarter of 2021.

Noninterest expense for the 2022 first quarter increased 2% to $75.4 million from $74.2 million for the preceding fourth quarter, reflecting higher salaries and employee benefits largely offset by decreases in most other noninterest expense line items. For the 2021 first quarter, noninterest expense totaled $70.4 million.

Salaries and employee benefits expense for the 2022 first quarter increased to $47.7 million from $44.6 million in the preceding fourth quarter, largely reflecting seasonal increases related to payroll taxes and vacation accruals, along with a decrease in deferred loan origination costs. Salaries and employee benefits expense for the 2021 first quarter totaled $41.2 million. The Company attributed the year-over-year increase in salaries and employee benefits expense to higher base salaries reflecting an increase in full-time equivalent employees, higher group insurance expense and lower deferred loan origination costs.

The Company’s efficiency ratio for the 2022 first quarter was 51.50%, compared with 50.70% in the preceding fourth quarter and 53.61% in the year-ago first quarter. Noninterest expense as a percentage of average assets was 1.70% for the 2022 first quarter, compared with 1.67% for the 2021 fourth quarter and 1.65% for the 2021 first quarter.

The effective tax rate for the 2022 first quarter was 25.9%, compared with 27.0% for the preceding fourth quarter and 24.2% in the year-ago first quarter. The effective tax rate for the 2022 first quarter was higher than the year-ago first quarter due mainly to a decrease in affordable housing tax credits compared with the prior year.

Balance Sheet Summary

New loan originations funded during the 2022 first quarter totaled $1.03 billion, a record first quarter high and reflecting a 21% increase over $847.1 million in the year-ago first quarter. During the seasonally stronger fourth quarter of 2021, the Company originated $1.24 billion of new loans, a record high for any given quarter.

Following are the components of new loan production for the quarters ended March 31, 2022, December 31, 2021, and March 31, 2021.


(dollars in thousands) (unaudited)	For the Three Months Ended
	3/31/2022		12/31/2021		3/31/2021
Commercial real estate	$	529,730	$	573,978	$	277,704
Commercial		335,756		532,634		156,622
SBA		56,602		54,848		36,802
SBA PPP		—		—		304,727
Residential mortgage		103,473		81,325		69,784
Consumer		401		70		1,473
Total new loan originations	$	1,025,962	$	1,242,855	$	847,112

At March 31, 2022, loans receivable increased 0.8% to $14.07 billion from $13.95 billion at December 31, 2021 and increased 2.7% from $13.70 billion at March 31, 2021.

Total deposits at March 31, 2022 declined 3.5% to $14.52 billion from $15.04 billion at December 31, 2021, largely reflecting a decrease in time deposits, but increased 1.5% year-over-year from $14.30 billion at March 31, 2021. Quarter-over-quarter, money market and NOW deposits increased 4.9%, but was offset by a 4.4% decline in noninterest bearing demand deposits and a 20.7% reduction in time deposits. On a year-over-year basis, noninterest bearing demand deposits at March 31, 2022 increased 1.3%, money market and NOW deposits increased 29.4%, and time deposits decreased 37.9%.

Following is the deposit composition as of March 31, 2022, December 31, 2021 and March 31, 2021:


(dollars in thousands) (unaudited)	3/31/2022		12/31/2021		% change		3/31/2021		% change
Noninterest bearing demand deposits	$	5,498,263	$	5,751,870	(4)	%	$	5,427,174	1	%
Money market and other	6,484,677		6,178,850		5	%	5,009,419		29	%
Saving deposits	321,373		321,377		—	%	305,326		5	%
Time deposits	2,210,815		2,788,353		(21)	%	3,559,350		(38)	%
Total deposit balances	$	14,515,128	$	15,040,450	(3)	%	$	14,301,269	1	%

Following is the deposit composition as a percentage of total deposits and a breakdown of cost of deposits as of and for the quarters ended March 31, 2022, December 31, 2021 and March 31, 2021:


	Deposit Breakdown						Cost of Deposits
(unaudited)	3/31/2022		12/31/2021		3/31/2021		Q1 2022		Q4 2021		Q1 2021
Noninterest bearing demand deposits	37.9	%	38.3	%	38.0	%	—	%	—	%	—	%
Money market and other	44.7	%	41.1	%	35.0	%	0.36	%	0.37	%	0.42	%
Saving deposits	2.2	%	2.1	%	2.1	%	1.18	%	1.18	%	1.17	%
Time deposits	15.2	%	18.5	%	24.9	%	0.32	%	0.34	%	0.69	%
Total deposit balances	100.0	%	100.0	%	100.0	%	0.24	%	0.23	%	0.36	%

Allowance for Credit Losses

In the 2022 first quarter, the Company recorded a negative provision for credit losses of $11.0 million, compared with a provision for credit losses of $1.5 million in the preceding fourth quarter and a provision for credit losses of $3.3 million in the 2021 first quarter.

Following is the allowance for credit losses and allowance coverage ratios as of March 31, 2022, December 31, 2021 and March 31, 2021:


(dollars in thousands) (unaudited)	3/31/2022			12/31/2021			3/31/2021
Allowance for credit losses	$	147,450		$	140,550		$	207,943
Allowance for credit loss/loans receivable		1.05	%		1.01	%		1.52	%
Allowance for credit losses/nonperforming loans		146.92	%		128.75	%		136.79	%

Following are the components of nonperforming assets as of March 31, 2022, December 31, 2021 and March 31, 2021:


(dollars in thousands) (unaudited)	3/31/2022		12/31/2021		3/31/2021
Loans on nonaccrual status (1)	$	52,717	$	54,616	$	109,858
Delinquent loans 90 days or more on accrual status		3,090		2,131		384
Accruing troubled debt restructured loans		44,555		52,418		41,773
Total nonperforming loans		100,362		109,165		152,015
Other real estate owned		2,010		2,597		18,515
Total nonperforming assets	$	102,372	$	111,762	$	170,530

(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $17.0 million, $19.5 million and $25.0 million, at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

Total nonperforming assets at March 31, 2022 declined to $102.4 million from $111.8 million at December 31, 2021 and from $170.5 million at March 31, 2021. The quarter-over-quarter decrease in total nonperforming assets largely reflects a $1.9 million reduction in nonaccrual loans and a $7.9 million reduction in accruing troubled debt restructured loans.

Following are net (recoveries) charge offs and net (recoveries) charge offs to average loans receivable on an annualized basis for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021:


(dollars in thousands) (unaudited)	For the Three Months Ended
	3/31/2022			12/31/2021			3/31/2021
Net (recoveries) charge offs	$	(17,900)		$	(2,276)		$	2,098
Net (recoveries) charge offs/average loans receivable (annualized)		(0.52)	%		(0.07)	%		0.06	%

Net recoveries in the 2022 first quarter reflects additional partial recoveries from a large loan charged off during the 2021 third quarter.

Following are the components of criticized loan balances as of March 31, 2022, December 31, 2021 and March 31, 2021:


(dollars in thousands) (unaudited)	3/31/2022		12/31/2021		3/31/2021
Special mention	$	166,958	$	257,194	$	280,974
Substandard		226,661		242,397		379,048

Total criticized loans	$	393,619	$	499,591	$	660,022

The Company noted that the quarter-over-quarter decrease in criticized loan balances at March 31, 2022 largely reflects upgrades of its borrowers’ post-COVID modifications following the receipt of updated financial statements and payoffs of criticized loans.

At March 31, 2022, the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. Following are capital ratios for the Company as of March 31, 2022, December 31, 2021 and March 31, 2021:


Hope Bancorp, Inc. (unaudited)	3/31/2022	12/31/2021	3/31/2021	Minimum Guideline for “Well-Capitalized” Bank
Common Equity Tier 1 Capital	11.03%	11.03%	11.08%	6.50%
Tier 1 Leverage Ratio	10.37%	10.11%	10.15%	5.00%
Tier 1 Risk-Based Ratio	11.69%	11.70%	11.78%	8.00%
Total Risk-Based Ratio	12.49%	12.42%	13.03%	10.00%

Following are tangible common equity(1) (“TCE”) per share and TCE as a percentage of tangible assets(1) as of March 31, 2022, December 31, 2021 and March 31, 2021:


(unaudited)	3/31/2022	12/31/2021	3/31/2021
Tangible common equity per share (1)	$13.04	$13.51	$12.73
Tangible common equity to tangible assets (2)	9.05%	9.31%	9.40%

(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. 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, tangible common equity per share, tangible assets and tangible common equity to tangible assets are non-GAAP financial measures. Management’s reasons and purposes for using these non-GAAP financial measures are set forth in the following section. A quantitative reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 9.

Non-GAAP Financial Metrics

This news release contains certain non-GAAP financial measure disclosures, including pre-provision net revenue, tangible common equity, tangible common equity per share, tangible assets and tangible common equity to tangible assets. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding its operational performance and the Company’s and the Bank’s capital levels and has included these figures in response to market participant interest in these financial metrics. A reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 9.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Tuesday, April 19, 2022 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2022. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for 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 26, 2022, replay access code 1867037.

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 $17.80 billion in total assets as of March 31, 2022. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 54 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama and Georgia. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.

Forward-Looking Statements

Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market and statements regarding our business strategies, objectives and vision. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company’s allowances for credit losses, regulatory risks associated with current and future regulations; and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization of the Company. For additional information concerning these and other risk factors, see the Company’s most recent Annual Report on Form 10-K. 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.


Alex Ko Senior EVP & Chief Financial Officer 213-427-6560 alex.ko@bankofhope.com			Angie Yang SVP, Director of Investor Relations & Corporate Communications 213-251-2219 angie.yang@bankofhope.com

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share data)


Assets:	3/31/2022		12/31/2021		% change		3/31/2021		% change
Cash and due from banks	$	280,373	$	316,266	(11)	%	$	376,666	(26)	%
Securities available for sale, at fair value	2,492,486		2,666,275		(7)	%	2,233,744		12	%
Federal Home Loan Bank (“FHLB”) stock and other investments	87,201		87,961		(1)	%	102,242		(15)	%
Loans held for sale, at the lower of cost or fair value	115,756		99,049		17	%	19,672		488	%
Loans receivable	14,066,674		13,952,743		1	%	13,702,629		3	%
Allowance for credit losses	(147,450)		(140,550)		(5)	%	(207,943)		29	%
Net loans receivable	13,919,224		13,812,193		1	%	13,494,686		3	%
Accrued interest receivable	37,949		41,842		(9)	%	60,498		(37)	%
Premises and equipment, net	45,642		45,667		—	%	47,918		(5)	%
Bank owned life insurance	77,390		77,081		—	%	77,089		—	%
Goodwill	464,450		464,450		—	%	464,450		—	%
Servicing assets	10,874		10,418		4	%	12,084		(10)	%
Other intangible assets, net	7,184		7,671		(6)	%	9,198		(22)	%
Other assets	265,285		260,188		2	%	300,613		(12)	%
Total assets	$	17,803,814	$	17,889,061	—	%	$	17,198,860	4	%

Liabilities:
Deposits	$	14,515,128	$	15,040,450	(3)	%	$	14,301,269	1	%
FHLB and FRB borrowings	772,000		300,000		157	%	400,000		93	%
Convertible notes, net	216,444		216,209		—	%	215,504		—	%
Subordinated debentures	105,652		105,354		—	%	104,469		1	%
Accrued interest payable	4,826		4,272		13	%	8,611		(44)	%
Other liabilities	148,707		129,793		15	%	123,426		20	%
Total liabilities	$	15,762,757	$	15,796,078	—	%	$	15,153,279	4	%

Stockholders’ Equity:
Common stock, $0.001 par value	$	137	$	136	1	%	$	136	1	%
Capital surplus	1,422,602		1,421,698		—	%	1,417,137		—	%
Retained earnings	976,483		932,561		5	%	823,085		19	%
Treasury stock, at cost	(250,000)		(250,000)		—	%	(200,000)		(25)	%
Accumulated other comprehensive (loss) gain, net	(108,165)		(11,412)		(848)	%	5,223		N/A
Total stockholders’ equity	2,041,057		2,092,983		(2)	%	2,045,581		—	%
Total liabilities and stockholders’ equity	$	17,803,814	$	17,889,061	—	%	$	17,198,860	4	%

Common stock shares - authorized	150,000,000		150,000,000				150,000,000
Common stock shares - outstanding	120,327,689		120,006,452				123,480,494
Treasury stock shares	16,343,849		16,343,849				12,661,581

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)


	Three Months Ended
	3/31/2022		12/31/2021		% change		3/31/2021		% change

Interest and fees on loans	$	132,672	$	133,821	(1)	%	$	129,736	2	%
Interest on securities	11,656		10,657		9	%	7,915		47	%
Interest on federal funds sold and other investments	544		691		(21)	%	642		(15)	%
Total interest income	144,872		145,169		—	%	138,293		5	%

Interest on deposits	8,676		8,905		(3)	%	12,770		(32)	%
Interest on other borrowings and convertible notes	3,020		2,946		3	%	2,944		3	%
Total interest expense	11,696		11,851		(1)	%	15,714		(26)	%

Net interest income before provision (credit) for credit losses	133,176		133,318		—	%	122,579		9	%
Provision (credit) for credit losses	(11,000)		1,500		N/A		3,300		N/A
Net interest income after provision (credit) for credit losses	144,176		131,818		9	%	119,279		21	%

Service fees on deposit accounts	1,974		1,894		4	%	1,790		10	%
International service fees	794		1,061		(25)	%	841		(6)	%
Loan servicing fees, net	836		747		12	%	1,044		(20)	%
Wire transfer fees	900		916		(2)	%	844		7	%
Net gains on sales of SBA loans	5,603		3,614		55	%	—		100	%
Net gains on sales of residential mortgage loans	757		530		43	%	2,096		(64)	%

Other income and fees	2,322		4,335		(46)	%	2,189		6	%
Total noninterest income	13,186		13,097		1	%	8,804		50	%

Salaries and employee benefits	47,745		44,608		7	%	41,216		16	%
Occupancy	7,335		7,391		(1)	%	6,967		5	%
Furniture and equipment	4,644		4,642		—	%	4,186		11	%
Advertising and marketing	1,636		2,329		(30)	%	1,625		1	%
Data processing and communications	2,461		2,789		(12)	%	2,737		(10)	%
Professional fees	2,211		2,439		(9)	%	2,903		(24)	%
FDIC assessment	1,569		1,366		15	%	1,255		25	%
Credit related expenses	1,112		873		27	%	2,218		(50)	%
OREO expense, net	357		811		(56)	%	281		27	%


Other	6,303		6,988		(10)	%	7,043		(11)	%
Total noninterest expense	75,373		74,236		2	%	70,431		7	%
Income before income taxes	81,989		70,679		16	%	57,652		42	%
Income tax provision	21,251		19,056		12	%	13,965		52	%
Net income	$	60,738	$	51,623	18	%	$	43,687	39	%

Earnings Per Common Share - Basic	$	0.51	$	0.43			$	0.35
Earnings Per Common Share - Diluted	$	0.50	$	0.43			$	0.35

Weighted Average Shares Outstanding - Basic	120,131,380		120,160,300				123,324,745
Weighted Average Shares Outstanding - Diluted	121,089,474		121,025,925				124,336,130

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)












	For the Three Months Ended (Annualized)
Profitability measures:	3/31/2022			12/31/2021			3/31/2021
ROA	1.37		%	1.16		%	1.02		%
ROE	11.62		%	9.93		%	8.53		%
ROTCE (1)	15.01		%	12.85		%	11.11		%
Net interest margin	3.21		%	3.13		%	3.06		%
Efficiency ratio	51.50		%	50.70		%	53.61		%
Noninterest expense / average assets	1.70		%	1.67		%	1.65		%

(1) Average tangible equity is calculated by subtracting average goodwill and average core deposit intangible assets from average stockholders’ equity. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position.


	Three Months Ended
Pre-tax acquisition accounting adjustments:	3/31/2022			12/31/2021			3/31/2021
Accretion on acquired loans (including acquired credit deteriorated loans)	$	883		$	1,950		$	2,960
Amortization of premium on low income housing tax credits	(76)			(73)			(73)
Accretion of discount on acquired subordinated debt	(298)			(296)			(290)
Amortization of core deposit intangibles	(487)			(509)			(509)
Total acquisition accounting adjustments	$	22		$	1,072		$	2,088

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)


	Three Months Ended
	3/31/2022						12/31/2021						3/31/2021
			Interest		Annualized				Interest		Annualized				Interest		Annualized
	Average		Income/		Average		Average		Income/		Average		Average		Income/		Average
	Balance		Expense		Yield/Cost		Balance		Expense		Yield/Cost		Balance		Expense		Yield/Cost
INTEREST EARNING ASSETS:
Loans, including loans held for sale	$	13,871,974	$	132,672	3.88	%	$	13,447,009	$	133,821	3.95	%	$	13,346,264	$	129,736	3.94	%
Securities available for sale	2,621,220		11,656		1.80	%	2,674,903		10,657		1.58	%	2,267,409		7,915		1.42	%
FHLB stock and other investments	352,774		544		0.63	%	773,579		691		0.35	%	640,392		642		0.41	%
Total interest earning assets	$	16,845,968	$	144,872	3.49	%	$	16,895,491	$	145,169	3.41	%	$	16,254,065	$	138,293	3.45	%

INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing	$	6,337,866	$	5,701	0.36	%	$	5,961,363	$	5,522	0.37	%	$	5,256,579	$	5,490	0.42	%
Savings	318,508		927		1.18	%	316,758		946		1.18	%	301,184		870		1.17	%
Time deposits	2,619,491		2,048		0.32	%	2,823,613		2,437		0.34	%	3,767,109		6,410		0.69	%
Total interest bearing deposits	9,275,865		8,676		0.38	%	9,101,734		8,905		0.39	%	9,324,872		12,770		0.56	%
FHLB and FRB borrowings	242,556		687		1.15	%	216,882		648		1.19	%	215,889		642		1.21	%
Convertible notes, net	216,305		1,323		2.45	%	216,078		1,322		2.39	%	215,002		1,322		2.46	%
Subordinated debentures	101,577		1,010		3.98	%	101,295		976		3.77	%	100,392		980		3.90	%
Total interest bearing liabilities	$	9,836,303	$	11,696	0.48	%	$	9,635,989	$	11,851	0.49	%	$	9,856,155	$	15,714	0.65	%
Noninterest bearing demand deposits	5,672,768						5,967,251						5,052,532
Total funding liabilities/cost of funds	$	15,509,071			0.31	%	$	15,603,240			0.30	%	$	14,908,687			0.43	%
Net interest income/net interest spread			$	133,176	3.01	%			$	133,318	2.92	%			$	122,579	2.80	%
Net interest margin					3.21	%					3.13	%					3.06	%

Cost of deposits:
Noninterest bearing demand deposits	$	5,672,768	$	—	—	%	$	5,967,251	$	—	—	%	$	5,052,532	$	—	—	%
Interest bearing deposits	9,275,865		8,676		0.38	%	9,101,734		8,905		0.39	%	9,324,872		12,770		0.56	%
Total deposits	$	14,948,633	$	8,676	0.24	%	$	15,068,985	$	8,905	0.23	%	$	14,377,404	$	12,770	0.36	%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)


	Three Months Ended
AVERAGE BALANCES:	3/31/2022			12/31/2021			% change		3/31/2021			% change
Loans receivable, including loans held for sale	$	13,871,974		$	13,447,009		3	%	$	13,346,264		4	%
Investments	2,973,994			3,448,482			(14)	%	2,907,801			2	%
Interest earning assets	16,845,968			16,895,491			—	%	16,254,065			4	%
Total assets	17,742,402			17,834,345			(1)	%	17,115,407			4	%

Interest bearing deposits	9,275,865			9,101,734			2	%	9,324,872			(1)	%
Interest bearing liabilities	9,836,303			9,635,989			2	%	9,856,155			—	%
Noninterest bearing demand deposits	5,672,768			5,967,251			(5)	%	5,052,532			12	%
Stockholders’ equity	2,090,755			2,079,694			1	%	2,047,506			2	%
Net interest earning assets	7,009,665			7,259,502			(3)	%	6,397,910			10	%

LOAN PORTFOLIO COMPOSITION:	3/31/2022			12/31/2021			% change		3/31/2021			% change
Commercial loans	$	4,124,715		$	4,208,674		(2)	%	$	4,346,244		(5)	%
Real estate loans	9,262,305			9,105,931			2	%	8,811,423			5	%
Consumer and other loans	679,654			638,138			7	%	544,962			25	%
Loans, net of deferred loan fees and costs	14,066,674			13,952,743			1	%	13,702,629			3	%
Allowance for credit losses	(147,450)			(140,550)			(5)	%	(207,943)			29	%
Loans receivable, net	$	13,919,224		$	13,812,193		1	%	$	13,494,686		3	%

REAL ESTATE LOANS BY PROPERTY TYPE:	3/31/2022			12/31/2021			% change		3/31/2021			% change
Retail buildings	$	2,598,373		$	2,522,976		3	%	$	2,317,017		12	%
Hotels/motels	1,208,217			1,308,405			(8)	%	1,619,661			(25)	%
Gas stations/car washes	1,055,383			1,050,730			—	%	913,176			16	%
Mixed-use facilities	872,362			854,793			2	%	752,729			16	%
Warehouses	1,263,791			1,244,339			2	%	1,092,549			16	%
Multifamily	841,316			744,068			13	%	531,306			58	%
Other	1,422,863			1,380,620			3	%	1,584,985			(10)	%
Total	$	9,262,305		$	9,105,931		2	%	$	8,811,423		5	%

DEPOSIT COMPOSITION	3/31/2022			12/31/2021			% change		3/31/2021			% change
Noninterest bearing demand deposits	$	5,498,263		$	5,751,870		(4)	%	$	5,427,174		1	%
Money market and other	6,484,677			6,178,850			5	%	5,009,419			29	%
Saving deposits	321,373			321,377			—	%	305,326			5	%
Time deposits	2,210,815			2,788,353			(21)	%	3,559,350			(38)	%
Total deposit balances	$	14,515,128		$	15,040,450		(3)	%	$	14,301,269		1	%

DEPOSIT COMPOSITION (%)	3/31/2022			12/31/2021					3/31/2021
Noninterest bearing demand deposits	37.9		%	38.3		%			38.0		%
Money market and other	44.7		%	41.1		%			35.0		%
Saving deposits	2.2		%	2.1		%			2.1		%
Time deposits	15.2		%	18.5		%			24.9		%
Total deposit balances	100.0		%	100.0		%			100.0		%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)



CAPITAL RATIOS:	3/31/2022			12/31/2021			3/31/2021
Total stockholders’ equity	$	2,041,057		$	2,092,983		$	2,045,581
Common equity tier 1 ratio	11.03		%	11.03		%	11.08		%
Tier 1 risk-based capital ratio	11.69		%	11.70		%	11.78		%
Total risk-based capital ratio	12.49		%	12.42		%	13.03		%
Tier 1 leverage ratio	10.37		%	10.11		%	10.15		%
Total risk weighted assets	$	15,393,639		$	15,036,292		$	14,338,828
Book value per common share	$	16.96		$	17.44		$	16.57
Tangible common equity to tangible assets (1)	9.05		%	9.31		%	9.40		%
Tangible common equity per share (1)	$	13.04		$	13.51		$	12.73

(1) Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and core deposit intangible assets, net divided by total assets less goodwill and core deposit intangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company’s capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital.

	Three Months Ended
ALLOWANCE FOR CREDIT LOSSES CHANGES:	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Balance at beginning of period	$	140,550		$	136,774		$	189,452		$	207,943		$	206,741
(Credit) provision for credit losses	(11,000)			1,500			(10,000)			(7,000)			3,300
Recoveries	19,403			3,615			1,906			1,301			1,423
Charge offs	(1,503)			(1,339)			(44,584)			(12,792)			(3,521)
Balance at end of period	$	147,450		$	140,550		$	136,774		$	189,452		$	207,943
Net (recoveries) charge offs/average loans receivable (annualized)	(0.52)		%	(0.07)		%	1.28		%	0.35		%	0.06		%

	Three Months Ended
NET LOAN (RECOVERIES) CHARGE OFFS:	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Real estate loans	$	(16,418)		$	(2,352)		$	40,542		$	11,281		$	2,234
Commercial loans	(1,529)			144			1,117			181			(80)
Consumer loans	47			(68)			1,019			29			(56)
Total net (recoveries) charge offs	$	(17,900)		$	(2,276)		$	42,678		$	11,491		$	2,098

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)


NONPERFORMING ASSETS:	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Loans on nonaccrual status (1)	$	52,717		$	54,616		$	54,380		$	111,008		$	109,858
Delinquent loans 90 days or more on accrual status	3,090			2,131			4,567			4,759			384
Accruing troubled debt restructured loans	44,555			52,418			39,509			51,360			41,773
Total nonperforming loans	100,362			109,165			98,456			167,127			152,015
Other real estate owned	2,010			2,597			15,213			16,619			18,515
Total nonperforming assets	$	102,372		$	111,762		$	113,669		$	183,746		$	170,530
Nonperforming assets/total assets	0.58		%	0.62		%	0.64		%	1.05		%	0.99		%
Nonperforming assets/loans receivable & OREO	0.73		%	0.80		%	0.85		%	1.37		%	1.24		%
Nonperforming assets/total capital	5.02		%	5.34		%	5.48		%	8.78		%	8.34		%
Nonperforming loans/loans receivable	0.71		%	0.78		%	0.73		%	1.24		%	1.11		%
Nonaccrual loans/loans receivable	0.37		%	0.39		%	0.41		%	0.83		%	0.80		%
Allowance for credit losses/loans receivable	1.05		%	1.01		%	1.02		%	1.41		%	1.52		%
Allowance for credit losses/nonaccrual loans	279.70		%	257.34		%	251.52		%	170.67		%	189.28		%
Allowance for credit losses/nonperforming loans	146.92		%	128.75		%	138.92		%	113.36		%	136.79		%
Allowance for credit losses/nonperforming assets	144.03		%	125.76		%	120.33		%	103.11		%	121.94		%

(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $17.0 million, $19.5 million, $20.6 million, $23.6 million, and $25.0 million, at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.


NONACCRUAL LOANS BY TYPE:	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Real estate loans	$	36,655		$	39,756		$	41,673		$	95,622		$	91,940
Commercial loans	8,686			11,025			10,991			12,217			14,080
Consumer loans	7,376			3,835			1,716			3,169			3,838
Total nonaccrual loans	$	52,717		$	54,616		$	54,380		$	111,008		$	109,858


ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Retail buildings	$	24,356		$	28,483		$	11,280		$	12,110		$	6,319
Hotels/motels	—			472			—			—			—
Gas stations/car washes	193			197			202			206			210
Mixed-use facilities	2,836			2,846			7,937			7,967			3,377
Warehouses	5,321			5,366			4,908			14,099			14,124

Other (2)	11,849			15,054			15,182			16,978			17,743
Total	$	44,555		$	52,418		$	39,509		$	51,360		$	41,773

(2) Includes commercial business, consumer, and other loans

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)


ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:	3/31/2022		12/31/2021		9/30/2021		6/30/2021		3/31/2021
30 - 59 days	$	12,439	$	29,723	$	15,016	$	22,466	$	18,175
60 - 89 days	3,090		10,345		4,746		6,987		8,314
Total	$	15,529	$	40,068	$	19,762	$	29,453	$	26,489


ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE:	3/31/2022		12/31/2021		9/30/2021		6/30/2021		3/31/2021
Real estate loans	$	6,097	$	20,232	$	10,359	$	21,432	$	18,331
Commercial loans	5,003		3,057		9,377		560		1,002
Consumer loans	4,429		16,779		26		7,461		7,156
Total	$	15,529	$	40,068	$	19,762	$	29,453	$	26,489


CRITICIZED LOANS:	3/31/2022		12/31/2021		9/30/2021		6/30/2021		3/31/2021
Special mention	$	166,958	$	257,194	$	306,766	$	294,559	$	280,974
Substandard	226,661		242,397		243,684		380,955		379,048

Total criticized loans	$	393,619	$	499,591	$	550,450	$	675,514	$	660,022

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)


Reconciliation of GAAP financial measures to non-GAAP financial measures

Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. A reconciliation of the GAAP to non-GAAP financial measures utilized by management is provided below.


	Three Months Ended
	3/31/2022			12/31/2021			3/31/2021
RETURN ON AVERAGE TANGIBLE COMMON EQUITY
Average stockholders’ equity	$	2,090,755		$	2,079,694		$	2,047,506
Less: Goodwill and core deposit intangible assets, net	(471,921)			(472,405)			(473,961)
Average tangible common equity	$	1,618,834		$	1,607,289		$	1,573,545

Net income	$	60,738		$	51,623		$	43,687
Return on average tangible common equity (annualized)	15.01		%	12.85		%	11.11		%




	3/31/2022			12/31/2021			3/31/2021
TANGIBLE COMMON EQUITY
Total stockholders’ equity	$	2,041,057		$	2,092,983		$	2,045,581
Less: Goodwill and core deposit intangible assets, net	(471,634)			(472,121)			(473,648)
Tangible common equity	$	1,569,423		$	1,620,862		$	1,571,933

Total assets	$	17,803,814		$	17,889,061		$	17,198,860
Less: Goodwill and core deposit intangible assets, net	(471,634)			(472,121)			(473,648)
Tangible assets	$	17,332,180		$	17,416,940		$	16,725,212

Common shares outstanding	120,327,689			120,006,452			123,480,494

Tangible common equity to tangible assets	9.05		%	9.31		%	9.40		%
Tangible common equity per share	$	13.04		$	13.51		$	12.73


	Three Months Ended
	3/31/2022			12/31/2021			3/31/2021
PRE-PROVISION NET REVENUE
Net interest income before provision (credit) for credit losses	$	133,176		$	133,318		$	122,579
Noninterest income	13,186			13,097			8,804
Revenue	146,362			146,415			131,383

Noninterest expense	75,373			74,236			70,431
Pre-provision net revenue	$	70,989		$	72,179		$	60,952

HOPE BANCORP DECLARES QUARTERLY CASH DIVIDEND OF $0.14 PER SHARE

LOS ANGELES - April 18, 2022 - Hope Bancorp, Inc. (NASDAQ: HOPE) today announced that its Board of Directors declared a quarterly cash dividend of $0.14 per common share. The dividend is payable on or about May 12, 2022 to all stockholders of record as of the close of business on April 28, 2022.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Tuesday, April 19, 2022 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2022. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for 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 26, 2022, replay access code 1867037.

About Hope Bancorp, Inc.


Alex Ko Senior EVP & Chief Financial Officer 213-427-6560 alex.ko@bankofhope.com			Angie Yang SVP, Director of Investor Relations & Corporate Communications 213-251-2219 angie.yang@bankofhope.com

2022 First Quarter Earnings Conference Call Tuesday, April 19, 2022

Forward Looking Statements & Additional Disclosures This presentation may contain statements regarding future events or the future financial performance of the Company that constitute forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market, and statements regarding our business strategies, objectives and vision. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward- looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company’s allowances for credit losses, including the effects of the implementation of the current expected credit losses model; regulatory risks associated with current and future regulations; and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company’s most recent Annual Report on Form 10-K. 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.

Earnings & Profitability • Net interest margin expanded 8bps Q-o-Q reflecting decreased cash balance and more favorable mix of higher-yielding earning assets • Net income increased 18% Q-o-Q • ROA increased to 1.37% and ROTCE1 increased to 15.01% from 1.16% and 12.85%, respectively Loans • New loan production of $1.03 billion established new first quarter record high, up 21.1% over 1Q21 • Excluding PPP, loans receivable increased 1.7% Q-o-Q, or 6.7% annualized Deposits • Cost of interest-bearing deposits declined 1bps Q-o-Q while total cost of deposits increased 1bps Asset Quality • Significant improvement in asset quality • Total nonperforming assets decreased 8.4% Q-o-Q and criticized loans decreased 21.2% • Net recoveries of $17.9 million related to additional recoveries from a large relationship charged off in 3Q21 Q1 2022 Financial Highlights 3 Net Income $60.7M Diluted EPS $0.50 Gross Loans $14.07B Total Deposits $14.52B 1 ROTCE (return on average tangible common equity) is a non-GAAP financial measure. A quantitative reconciliation of the GAAP to non-GAAP financial measure is provided on Slide 15.

Loan Production & Portfolio Trends New Loan Originations Funded ($ Millions) 1 Represents average rate on new loans excluding PPP loans. Including PPP loans, the average rate on new loan originations was 2.56% for 1Q21 and 3.32% for 2Q21 $311 $520 $590 $623 $578 $305 $20 $160 $301 $344 $539 $344 $71 $53 $75 $81 $104 1Q21 2Q21 3Q21 4Q21 1Q22 $1,242.9 $1,026.0 $847.1 $1,009.2 $894.1 CRE PPP C&I Consumer Q-o-Q increase • Total loans receivable, excluding PPP, increased 1.7% Q-o-Q, or 6.7% annualized • Aggregate payoffs and paydowns decreased to $674.0 in 1Q22 vs. $881.3 million in 4Q21 +6% +23% -17% +13% $12.99 $12.86 $13.08 $13.72 $13.95 12.25 12.75 13.25 13.75 14.25 03/31/21 06/30/21 09/30/21 12/31/21 03/31/22 Loans Receivable (Excluding PPP) • New loans funded set new record first quarter high of $1.03 billion, increasing 21.1%, or 89% excluding PPP production, Y-o-Y • Originations reflect diverse mix of 56% CRE, 34% C&I and 10% Consumer loans • Average rate on new loans increased 16bps Q-o-Q Loans Receivable (Excluding PPP) ($ Billions) Q-o-Q increase +2% +2% -1% +5% Average Rate of New Loans (Excluding PPP) 1Q21 2Q21 3Q21 4Q21 1Q22 3.44%1 3.37%1 3.36% 3.38% 3.54% 4

Net Interest Income and Margin 5 • Net interest income before provision for credit losses was stable Q-o-Q but increased 9% Y-o-Y Net Interest Income & NIM ($ Millions) $122.6 $126.6 $130.3 $133.3 $133.2 3.06% 3.11% 3.07% 3.13% 3.21% 1Q21 2Q21 3Q21 4Q21 1Q22 3.13% 3.21%Interest bearing deposit cost decline Reduction in interest earnings cash + average loans balance increase Declines in accretion and loan yield +9bps +3bps 1Q22 net interest margin increased 8bps Q-o-Q Net Interest Income NIM Increase Decrease Total Q-o-Q increase +3% +2% -0% +3% Net Interest Margin 4Q21 1Q22 -5bps • 8bps Q-o-Q increase in net interest margin primarily reflected reductions in interest earning cash used to fund large increase in average loan balances Inv securities decrease + yield increase +1bps

Interest Rate Risk Variable 43% @3.47%2 Fixed 29% @3.66%2,3 Hybrid 1 28% @3.99%2 New Loan Fixed/Variable & Average Rate (As of 03/31/2022) Fixed/Variable Breakdown (As of 3/31/2022) 1 Hybrid loans have fixed interest rates for a specified period and then convert to variable rates (fixed as of 3/31/2022) 2 The weighted average rate represents coupon rate and excludes loan discount accretion and interest on nonaccrual loans 3 Excluding SBA PPP loans, average yield for fixed rate loans is 3.74% • Variable rate loans as percentage of total new loan originations represented 43% of new production • As of 3/31/2022, variable rate loans accounted for 43% of total loan portfolio • Positioned as asset sensitive at 3/31/2022 and expect net interest income to increase as interest rates rise 6 86% 8% 4% 100% 57% 14% 92% 96% 43% CRE Commercial SBA Mortgage Consumer Total Originations Fixed/Hybrid Variable 3.51% 3.58% 4.49% 3.09% 3.54% 1 Hybrid loans have fixed interest rates for a specified period and then convert to variable rates (fixed as of 3/31/2022) 1

Noninterest Income 7 • Noninterest income increased 1% Q-o-Q to $13.2 million vs. $13.1 million in 4Q21 • Sold $58.1 million of the guaranteed portion of SBA 7(a) loans to the secondary market in 1Q22 vs. $41.0 million in 4Q21 • Sold $37.8 million of residential mortgage loans vs. $35.9 million in 4Q21 • Decrease in other income and fees vs. 4Q21 largely reflects Q-o-Q decreases in fair value of equity investments, CRA investment dividend income and swap fee income * Primary Customer-Related Service Fees include service fees on deposit accounts, international service fees, loan servicing fees, and wire transfer fees $4.5 $4.4 $4.2 $4.6 $4.5 $2.4 $2.5 $3.6 $5.6 $2.1 $1.0 $0.8 $0.5 $0.8 $2.2 $3.2 $3.2 $4.3 $2.3 1Q21 2Q21 3Q21 4Q21 1Q22 Other Income and Fees Gain on Sale of Mortgage Loans Gain on Sale of SBA Loans Primary Customer-Related Service Fees* $13.1 $13.2 $8.8 $11.1 $10.6 Noninterest Income ($ Millions)

• Noninterest expense increased to $75.4 million from $74.2 million in 4Q21 • Q-o-Q increase in salaries and benefits for 1Q22 largely reflects seasonal increases in payroll taxes and vacation accruals, plus a decrease in deferred loan origination costs • Most other noninterest expenses declined Q-o-Q Efficiency Ratio & Noninterest Expense to Average Assets 53.61% 53.12% 53.58% 50.70% 51.50% 1.65% 1.70% 1.70% 1.67% 1.70% 1Q21 2Q21 3Q21 4Q21 1Q22 Efficiency Ratio Noninterest Expense/Avg Assets 8 $41.2 $42.3 $47.0 $44.6 $47.7 $19.7 $22.1 $20.6 $21.0 $19.9 $2.5 $0.3 $1.5 $1.7 $1.5$7.0 $8.4 1 $6.4 $7.0 $6.3 1,444 1,438 1,449 1,476 1,509 1Q21 2Q21 3Q21 4Q21 1Q22 Compensation Other core operating expenses Credit related & OREO Other Full-time employee (FTE) $74.2 $75.4 $70.4 $73.1 $75.5 Noninterest Expense and Efficiency Noninterest Expense & FTE ($ Millions) 1. 2Q21 included software charge off expense of $2.1MM 2. Other core operating expenses include: Occupancy & equipment, Advertising & marketing, Data & communications, Professional fees and FDIC assessment • Efficiency ratio of 51.50% for 1Q22 reflects higher salaries and employee benefits expense • Noninterest expense to average assets of 1.70% within management’s targeted range 2

Deposit Trends 9 Deposit Composition ($ Billions) Deposit Cost Trend Average Deposits and Cost of Interest-Bearing Deposits ($ Billions) • Total cost of deposits increased 1bps Q-o-Q driven by growth of interest bearing deposits as a percentage of total deposits 0.40% 0.36%0.32% 0.31%0.30% 0.28%0.27% 0.25%0.24%0.24%0.23%0.23%0.23%0.23% 0.25% $9.3 $9.0 $9.1 $9.1 $9.3 $5.1 $5.4 $5.8 $6.0 $5.7 0.56% 0.48% 0.42% 0.39% 0.38% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1Q21 2Q21 3Q21 4Q21 1Q22 Average Noninterest Bearing Deposits Average Interest Bearing Deposits Cost of Interest Bearing Deposits $5.4 $5.6 $6.0 $5.8 $5.5 $5.0 $5.8 $5.9 $6.2 $6.5 $0.3 $0.3 $0.3 $0.3 $0.3$3.6 $3.0 $2.9 $2.8 $2.2 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 $15.06$14.73$14.30 $14.52 $15.04 +12% -3% -0%+9% Q-o-Q growth annualized Quarterly Cost of Deposits Monthly Cost of Deposits DDA MMA/NOW Savings Time 0.26% 3Q21 0.30% 2Q21 0.36% 1Q21 0.24% 1Q22 0.23% 4Q21 • Average interest bearing deposits increased 2% Q- o-Q driven by growth in MMA/NOW deposits, partially offset by decreases in time deposits • Total cost of interest-bearing deposits decreased 1bps Q-o-Q • MMA & NOW deposits increased 5% Q-o-Q and accounted for 45% of total deposits at 3/31/22 • Time deposits continued downward trend decreasing to $2.2 billion, or 15% of total deposits at 3/31/22 vs. 18.5% at 12/31/21 $14.99$14.46$14.38 $14.95$15.07

Asset Quality Nonperforming Assets ($ Millions) Total Criticized Loans ($ Millions) Provision (Credit) for Credit Losses & Net Charge Off (Recoveries) ($ Millions) 10 $152.0 $167.1 $98.5 $109.2 $100.4 $18.5 $16.6 $15.2 $2.6 $2.0 0.99% 1.05% 0.64% 0.62% 0.58% 1Q21 2Q21 3Q21 4Q21 1Q22 NPLs OREO NPAs/Total Assets $281.0 $294.6 $306.8 $257.2 $167.0 $379.0 $381.0 $243.7 $242.4 $226.7 4.82% 5.03% 4.10% 3.58% 2.80% 1Q21 2Q21 3Q21 4Q21 1Q22 Substandard & Doubtful Special Mention Total Criticized Loans as a % of Gross Loans $3.3 -$7.0 -$10.0 $1.5 -$11.0 0.06% 0.35% 1.28% -0.07% -0.52% 1Q21 2Q21 3Q21 4Q21 1Q22 Provision for Credit Losses Net Charge Offs (Recoveries) (annualized) (Credit) for Credit Losses • Special mention loans decreased by $90.2 million Q-o-Q reflecting upgrades from updated financials of borrowers post COVID modifications • Total criticized loans declined to 2.80% of loans receivable vs. 3.58% at 12/31/21 • Negative provision for credit losses of $11.0 million reflects improved credit quality and net recoveries during the quarter • Net recoveries of $17.9 million, or -0.52% of average loans receivable, annualized, reflected additional recoveries related to one large relationship charged off in 3Q21 • Total nonperforming assets decreased to $102.4 million vs. $111.8 million as of 12/31/21, reflecting reductions in nonaccrual and accruing TDR loans • Nonperforming assets decreased to 0.58% of total assets vs. 0.62% at 12/31/21 $111.8 $102.4 $170.5 $183.7 $113.7 $499.6 $393.6 $660.0 $675.5 $550.5

12.42% 10.11% 11.03% 11.70% $13.51 12.49% 10.37% 11.03% 11.69% $13.04 Total Risk-Based Capital Ratio Tier 1 Leverage Ratio Tier 1 Common Equity Ratio Tier 1 Capital Ratio Tangible Common Equity per Share 12/31/2021 3/31/2022 $17.3 $17.3 $17.3 $16.8 $16.8 $47.2 $2.8 1Q21 2Q21 3Q21 4Q21 1Q22 Dividends Buybacks Strong Capital Position & Returns Capital Positions Dividends & Buybacks ($ Millions) Maintaining strong levels of capital • Capital ratios generally stable or improved Q-o-Q Enhancing shareholder returns • Quarterly common stock dividend maintained at $0.14 per share • Board authorized $50 million stock repurchase program in 1Q22 • Dividend yield: 3.48% | Dividend payout ratio: 30.94% (TTM) 11 1 Tangible common equity per share is a non-GAAP financial measure. A quantitative reconciliation of the GAAP to non-GAAP financial measure is provided on Slide 15. (1)

Near-Term Outlook 12  Loan Growth: Recent business development performance and robust loan pipeline support cautious optimism for achieving high single-digit to low double-digit loan growth for 2022, excluding PPP  Noninterest Expenses: Noninterest expense to average assets expected to be approximately 1.70%  Net Interest Margin: Relatively stable net interest margin for Q2 2022  Asset Quality: Anticipate improving asset quality metrics with criticized balances trending down an additional 10-20% for the balance of 2022, resulting in approximately 30-40% reduction for the full year  Profitability: Enhanced profitability metrics expected to be driven by increasing earning assets and improving asset quality metrics

Q&A 2022 First Quarter Earnings Conference Call

Appendix 14

Appendix: Non-GAAP Financials Pre-provision Net Revenue (PPNR) ($ in thousands) 1Q22 4Q21 1Q21 Net interest income before provision (credit) for credit losses $ 133,176 $ 133,318 $ 122,579 Noninterest income 13,186 13,097 8,804 Revenue 146,362 146,415 131,383 Less: noninterest expense 75,373 74,236 70,431 Pre-provision net revenue $ 70,989 $ 72,179 $ 60,952 Management reviews select non-GAAP financial measures in evaluating the Company’s financial performance and in response to market participant interest. A reconciliation of the GAAP to non-GAAP financial measures utilized by management is provided below. 15 ($ in thousands) 1Q22 4Q21 1Q21 Average stockholders’ equity $ 2,090,755 $ 2,079,694 $ 2,047,506 Less: goodwill and core deposit intangible assets, net (471,921) (472,405) (473,961) Average tangible common equity $ 1,618,834 $ 1,607,289 $ 1,573,545 Net Income $ 60,738 $ 51,623 $ 43,687 Return on average tangible common equity (annualized) 15.01% 12.85% 11.11% Return on Average Tangible Common Equity (ROTCE) ($ in thousands) 1Q22 4Q21 1Q21 Total stockholders’ equity $ 2,041,057 $ 2,092,983 $ 2,045,581 Less: Goodwill and core deposit intangible assets, net (471,634) (472,121) (473,648) Tangible common equity 1,569,423 1,620,862 1,571,933 Common shares outstanding 120,327,689 120,006,452 123,480,494 Tangible common equity per share $ 13.04 $ 13.51 $ 12.73 Tangible Common Equity Per Share

Document And entity Information	Apr. 18, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Apr. 18, 2022
Entity Registrant Name	HOPE BANCORP INC
Entity Incorporation, State or Country Code	DE
Entity File Number	000-50245
Entity Tax Identification Number	95-4849715
Entity Address, Address Line One	3200 Wilshire Boulevard, Suite 1400
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90010
City Area Code	213
Local Phone Number	639-1700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	HOPE
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001128361
Amendment Flag	false

Document And entity Information


Exhibit No.						Description of Exhibit

99.1						News release, dated April 18, 2022, concerning the results of operations and financial condition for the first quarter ended and as of March 31, 2022.
99.2						News release, dated April 18, 2022, announcing the declaration of a quarterly cash dividend.
99.3						Presentation Materials, dated April 18, 2022.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)