Hope Bancorp, Inc. (NASDAQ:HOPE) Q4 2021 Earnings Conference Call January 25, 2022 12:30 PM ET Company Participants Angie Yang - Director-IR Kevin Kim - Chairman, President and CEO Alex Ko - Senior EVP and CFO Peter Koh – Senior EVP and COO Conference Call Participants Matthew Clark - Piper Sandler Chris McGratty - KBW Gary Tenner - D.A. Davidson Tim Coffey - Janney Operator Good day, and welcome to the Hope Bancorp 2021 Fourth Quarter Earnings Conference Call. [Operator Instructions] After today's presenta ...

| --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2021 Fourth Quarter and Full-Year Earnings Conference Call | | | | | | | Tuesday, January 25, 2022 | | | | | | Forward Looking Statements & Additional Disclosures This presentation contains statements regarding future events or the future financial performance of the Company that constitute forward- looking sta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-50245 HOPE BANCORP INC (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identific ...

1 2021 Third Quarter Earnings Conference Call Tuesday, October 26, 2021 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 regardi ...

Hope Bancorp, Inc. (NASDAQ:HOPE) Q3 2021 Earnings Conference Call October 26, 2021 12:30 PM ET Company Participants Angie Yang – Director-Investor Relations Kevin Kim – Chairman, President and Chief Executive Officer Alex Ko – Senior Executive Vice President and Chief Financial Officer Peter Koh – Deputy Chief Operating Officer Conference Call Participants Chris McGratty – KBW Gary Tenner – D.A. Davidson Operator Good day, and welcome to the Hope Bancorp’s 2021 Third Quarter Earnings Conference Call. All p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-50245 HOPE BANCORP INC (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification ...

Hope Bancorp, Inc (NASDAQ:HOPE) Q2 2021 Results Conference Call July 21, 2021 12:30 PM ET Company Participants Angie Yang - Director, IR Kevin Kim - Chairman, President and CEO Alex Ko - Senior Executive Vice President and CFO Peter Koh - Deputy Chief Operating Officer Richard Marshall - Chief Credit Officer Conference Call Participants Matthew Clark - Piper Jaffray Chris McGratty - KBW Gary Tenner - D.A. Davidson Steven Marascia - Capitol Securities Management Operator Good day, and welcome to the Hope Ban ...

Loan Modifications and Allowances - As of March 31, 2021, the balance of loans with modified terms due to COVID-19 totaled $949.1 million, with approximately 94% being real estate loans[86]. - The Company recorded an allowance for TDR loans of $18.9 million as of March 31, 2021, compared to $4.8 million as of December 31, 2020[88]. - TDR loans on accrual status included 34 commercial real estate loans totaling $33.1 million and 21 commercial business loans totaling $8.5 million as of March 31, 2021[88]. - During the three months ended March 31, 2021, the Company recorded $14.8 million in allowance for credit losses (ACL) for TDR loans modified[89]. - Total charge-offs of TDR loans modified during the three months ended March 31, 2021 amounted to $0[89]. - The Company expects TDR loans on accrual status to continue performing in accordance with their restructured terms due to reduced principal or interest payments[88]. Lease Obligations - The net lease cost for the three months ended March 31, 2021 was $4.43 million, slightly down from $4.5 million in the same period of 2020[97]. - As of March 31, 2021, the Company had right-of-use (ROU) assets of $44.2 million and related lease liabilities of $48.6 million[95]. - The total lease obligations as of March 31, 2021 were $48.575 million after deducting imputed interest of $4.107 million[99]. - The weighted-average remaining lease term for operating leases was 5.1 years as of March 31, 2021[98]. Deposits and Borrowing - As of March 31, 2021, total deposits amounted to $14.30 billion, a slight decrease from $14.33 billion on December 31, 2020[103]. - Noninterest bearing demand deposits increased to $5.43 billion (38%) from $4.81 billion (34%) year-over-year[103]. - Brokered deposits decreased to $720.6 million as of March 31, 2021, down from $1.14 billion at December 31, 2020[102]. - FHLB advances increased to $400.0 million at March 31, 2021, compared to $250.0 million at December 31, 2020, with a weighted average interest rate of 0.69%[106]. - The Company’s remaining borrowing capacity with the FHLB was $3.86 billion as of March 31, 2021[106]. - The Company had a total borrowing capacity from the FHLB of $4.28 billion, with $3.86 billion unused and available to borrow as of March 31, 2021[304]. Financial Instruments and Hedging - The Company maintains a loan hedging program that allows for variable rate loans to be converted into fixed interest rate contracts[117]. - As of March 31, 2021, the notional amount of interest rate swaps related to the Company's loan hedging program was $100.7 million with a weighted average remaining term of 9.1 years[118]. - The estimated fair value of interest rate swaps on loans with correspondent banks included in other liabilities was $(17,878) thousand as of March 31, 2021, compared to $(34,606) thousand at December 31, 2020[118]. - The Company had risk participation agreements with a notional amount of $111.8 million as of March 31, 2021, with a credit valuation adjustment of $95 thousand[119]. Commitments and Servicing Assets - Commitments to extend credit increased to $2,477,778 thousand as of March 31, 2021, from $2,137,178 thousand at December 31, 2020, representing a growth of approximately 16%[127]. - The balance of servicing assets at the end of the period was $12,084 thousand as of March 31, 2021, down from $14,847 thousand at the end of March 2020[135]. - The principal balances of loans serviced for other institutions were $1.21 billion as of March 31, 2021, compared to $1.23 billion at December 31, 2020[135]. Tax and Regulatory Matters - For the three months ended March 31, 2021, the company reported a pretax income of $57.7 million and an income tax provision of $14.0 million, resulting in an effective tax rate of 24.22%, up from 19.94% in the same period of 2020[139]. - The company had total unrecognized tax benefits of $2.8 million as of March 31, 2021, with a potential decrease of $902 thousand expected in the next twelve months due to a settlement with state tax authorities[140][141]. - The company expects no material adjustments from the ongoing examination by the New York City Department of Finance for tax years 2016, 2017, and 2018[142]. - The company determined that a valuation allowance for deferred tax assets was not required as of March 31, 2021, based on its analysis of future income forecasts and current economic conditions[144]. Stockholders' Equity and Compensation - Total stockholders' equity remained stable at $2.05 billion as of March 31, 2021, unchanged from December 31, 2020[166]. - The company repurchased a total of 12,661,581 shares of common stock for $200.0 million as part of previous repurchase programs, with no shares repurchased during the three months ended March 31, 2021[167]. - Dividends paid were $0.14 per common share for both the three months ended March 31, 2021 and 2020[168]. - The total fair value of restricted stock and performance units vested for the three months ended March 31, 2021 was $5.2 million, compared to $2.0 million for the same period in 2020[176]. - The compensation expense for the Employee Stock Purchase Plan (ESPP) during the three months ended March 31, 2021 was $221 thousand, up from $71 thousand in 2020[175]. Comprehensive Income and Fair Value - The unrealized loss on securities available for sale was $40.8 million for the three months ended March 31, 2021, compared to an unrealized gain of $38.9 million in 2020[168]. - The total other comprehensive loss for the three months ended March 31, 2021 was $27.5 million, compared to a total income of $27.3 million in 2020[168]. - The estimated fair value of loans receivable—net was $13.54 billion as of March 31, 2021, compared to $13.43 billion at December 31, 2020[163]. - The company recorded net losses on collateral dependent loans at fair value of $17.3 million for real estate loans and $2.6 million for commercial business loans for the three months ended March 31, 2021[162].

Financial Performance - Net income was $43.7 million[3], resulting in diluted earnings per share (EPS) of $0.35[3] - Net interest income before provision for credit losses increased by 2% to $122.6 million[3] - Noninterest expenses decreased, leading to an improved efficiency ratio by 16bps quarter-over-quarter to 53.61%[3] Loan Portfolio - Gross loans totaled $13.70 billion[3] - New loan originations funded were $847 million, including $304.7 million in second-round PPP fundings[3] - Loans receivable increased by 1%, or 4% annualized[3,6] Deposit Trends - Total deposits reached $14.30 billion[3] - Noninterest-bearing deposits increased by 13% quarter-over-quarter, reaching a record high of 38% of total deposits[3,18] - Time deposits decreased by 11% quarter-over-quarter, accounting for 25% of total deposits[3,18] - The cost of deposits decreased for the sixth consecutive quarter, down 12bps quarter-over-quarter[3,18] Asset Quality - Nonperforming loans increased by $29 million quarter-over-quarter due to one large loan[3,24] - Special Mention loans increased by $96 million quarter-over-quarter, largely reflecting modified hotel/motel loans[3,24] - Net charge-offs were $2.1 million, or 0.06% of average loans receivable on an annualized basis[3,24] COVID-19 Loan Modifications - Active COVID-19 modifications totaled $949 million, representing 6.9% of the total loan portfolio[8] - Hotel/Motel modifications represented 33% of that portfolio, or $535 million[8,10] - Retail CRE modifications represented 8% of that portfolio, or $189 million[8,10] - $381 million of hotel/motel COVID-19 modifications and $115 million of retail CRE COVID-19 modifications were scheduled to expire during 2Q21[10]

Financial Data and Key Metrics Changes - For Q1 2021, the company generated net income of $43.7 million or $0.35 per diluted share, a 54% increase compared to $28.3 million or $0.23 per diluted share in the previous quarter [9] - Net interest income totaled $122.6 million, a 2% increase from $120.8 million in the preceding quarter, marking the third consecutive quarter of growth [27] - The net interest margin increased by 4 basis points to 3.06%, also representing the third consecutive quarter of margin expansion [28] Business Line Data and Key Metrics Changes - Non-interest-bearing deposits increased by 13% quarter-over-quarter, reaching 38% of total deposits, up from 24% a year ago [10][11] - Mortgage originations increased by 12% over the preceding quarter and were up 87% compared to the same quarter last year, leading to a 30% increase in net gain on sale of loans [13] - Excluding PPP loans, the average rate on new loans increased by 17 basis points quarter-over-quarter [18] Market Data and Key Metrics Changes - The company funded $305 million in PPP loan originations during the quarter, with commercial real estate loans decreasing as a percentage of total loans from 69% to 64% year-over-year [14][16] - The hotel/motel sector represented 56% of all active modifications, while retail properties accounted for 20% [20] Company Strategy and Development Direction - The company aims to enhance long-term value by improving loan and deposit mix while maintaining disciplined expense control [8] - A strategic priority for 2021 includes increasing residential mortgage originations and generating higher levels of fee income [12] - The company has expanded its corporate banking group to focus on the healthcare vertical, expecting meaningful contributions to loan production [48] Management Comments on Operating Environment and Future Outlook - Management expects to deliver strong performance driven by reduced cost of deposits, expanded net interest margin, and lower credit costs as economic conditions improve [45] - The loan pipeline is increasing, with expectations for higher loan production in the coming quarters as customer confidence grows [47] - The company anticipates a steady decrease in active loan modifications as the economy recovers [24] Other Important Information - The company maintained a robust capital position with total risk-based capital ratios increasing from the prior quarter [44] - The provision for credit losses was recorded at $3.3 million, maintaining the allowance for credit losses at 1.52% of total loans [40] Q&A Session Summary Question: Future potential for remixing deposits and impact on net interest income - Management indicated that non-interest-bearing demand deposits could continue to expand, positively impacting net interest income [54][55] Question: Service charge run rate and expense outlook - Management expects the expense run rate to remain similar to the first quarter, with no significant changes anticipated [57][58] Question: Remaining PPP fees and amortization schedule - Remaining PPP fees to be recognized amount to $18.3 million, with the majority coming from the second round of PPP, amortized over three years [62] Question: Health of the SBA portfolio - The company holds approximately $220 million in SBA loans and is considering selling some loans due to high market premiums [68] Question: Provision level guidance for the year - Management expects to see some level of reserve release in the second half of the year, contingent on the recovery of the hotel portfolio [72][76]