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 No.) Delaware 95-4849715 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 March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SEC ...

The Company's tier one leverage and risk-based capital ratios were 11.58% and 28.84%, respectively, and the Company is considered to be "well-capitalized" at March 31, 2024.Ratio of non-performing assets to total assets of 0.10% at March 31, 2024.Strong liquidity position with $90 million in cash balances and access to liquidity totaling $901.70 million as of March 31, 2024. HONOLULU, Hawaii, May 03, 2024 (GLOBE NEWSWIRE) -- Territorial Bancorp Inc. (NASDAQ:TBNK) (the "Company"), headquartered in Honolulu, ...

2024 First Quarter Earnings Conference Call Forward Looking Statements & Additional Disclosures Additional Information and Where to Find It Q1 2024 Financial Overview Total Deposits at 3/31/24 Gross Loans at 3/31/24 NPA/Total Assets at 3/31/24 1Q24 Net Income & EPS $27.4MM / $0.23 Excl. notable items • Total capital ratio was 14.19% at 3/31/24, +27bps QoQ. All regulatory capital ratios expanded QoQ • Tangible common equity ("TCE") ratio(1) was 9.33% at 3/31/24, +47bps QoQ • Announced signing of definitive m ...

Financial Data and Key Metrics Changes - For Q1 2024, the company reported net income of $25.9 million or $0.20 per diluted share, a decrease from $38.3 million or $0.32 per diluted share in Q4 2023 [47][48] - The allowance for credit losses was $159 million, representing 116 basis points of loans receivable, up from 115 basis points as of December 31, 2023 [3] - The tangible common equity ratio was 9.33%, an increase of 47 basis points from year-end 2023 [26] Business Line Data and Key Metrics Changes - Net interest income totaled $115 million for Q1 2024, a decrease of 9% from Q4 2023 [28] - Average loans decreased by 2% quarter-over-quarter to $13.7 billion, while the average yield on the loan portfolio increased by 1 basis point to 6.25% [53] - Non-interest income was $8 million for Q1 2024, down from $9 million in Q4 2023, with a decrease in other non-interest income offsetting growth in deposit service fees [12] Market Data and Key Metrics Changes - Total deposits were $14.8 billion as of March 31, 2024, stable quarter-over-quarter [50] - The gross loan-to-deposit ratio was 93% as of March 31, 2024 [50] - Non-performing assets increased to $107 million compared to $46 million as of December 31, 2023 [55] Company Strategy and Development Direction - The company announced a definitive agreement to acquire Territorial Bancorp, which is expected to close by year-end 2024, creating the largest U.S. regional bank catering to multi-ethnic customers [48][49] - The merger is seen as a strategic market expansion transaction, focusing on improving market share growth opportunities in Hawaii [84] - The transaction is expected to be immediately accretive to earnings at a double-digit percentage growth rate [49][36] Management's Comments on Operating Environment and Future Outlook - Management expects net interest income for Q4 2024 to decline between 5% and 7% from $126 million in Q4 2023, factoring in one Fed fund's target rate cut [57] - The company anticipates maintaining a stable coverage ratio of allowance for credit losses to loans [13] - Management expressed confidence in the integration process with Territorial, emphasizing a seamless transition for customers and employees [39] Other Important Information - The company declared a quarterly common stock dividend of $0.14 per share payable on May 23, 2024 [26] - The expected one-time merger expenses are estimated to be in the range of $25 million to $30 million, with cost savings projected at 75% in the first year [82] Q&A Session Summary Question: What are the expectations for one-time merger expenses and cost savings? - The expected one-time merger expenses are in the range of $25 million to $30 million, with cost savings projected at 75% in the first year and 100% in the subsequent year [82] Question: How did the deal with Territorial come about? - The strategic partnership was concluded after serious discussions towards the end of 2023, with Territorial concluding that Hope would be the most ideal deal partner [90] Question: What is the outlook for the Territorial franchise in the long term? - Management believes that Territorial's long legacy in Hawaii provides a good market presence, and with a larger balance sheet, there are significant market share expansion opportunities [84]

For the quarter ended March 2024, Hope Bancorp (HOPE) reported revenue of $123.33 million, down 14.9% over the same period last year. EPS came in at $0.23, compared to $0.33 in the year-ago quarter.The reported revenue represents a surprise of -6.35% over the Zacks Consensus Estimate of $131.7 million. With the consensus EPS estimate being $0.27, the EPS surprise was -14.81%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Hope Bancorp (HOPE) came out with quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -14.81%. A quarter ago, it was expected that this bank holding company would post earnings of $0.28 per share when it actually produced earnings of $0.32, delivering a surprise of 14.29%.Over the last four quarters, t ...

"The strength of our balance sheet positioned us well to capitalize on strategic opportunities in the market. This morning, we announced the signing of a definitive merger agreement with Territorial Bancorp, the stock holding company of Territorial Savings Bank, a $2.2 billion savings bank headquartered in Hawai'i," continued Kim. "Territorial has a stable, low-cost core deposit base, excellent asset quality, and provides us an entry point to the attractive Hawai'i market, which has a large Asian American a ...

Financial Performance and Capital Management - The investment portfolio aims to provide on-balance sheet liquidity and manage interest rate risk, including $126.0 million in pooled trust preferred securities[27][34]. - The company issued $217.5 million in convertible senior notes in 2018, with $197.1 million paid off in cash by May 15, 2023, reflecting a significant reduction in debt[35]. - The profitability is influenced by interest rate differentials, with a focus on managing the cost of funds through deposit maturities and interest rates[38]. - As of December 31, 2023, Hope Bancorp and the Bank met all Basel III Capital Rules requirements, including a common equity Tier 1 capital ratio of 7.0%, a Tier 1 capital ratio of 8.5%, and a total capital ratio of 10.5%[55]. - The minimum capital ratios under Basel III include a capital conservation buffer of 2.5% of risk-weighted assets, which if not maintained, could restrict the ability to pay dividends and repurchase shares[54]. - The Bank must maintain a minimum Tier 1 leverage ratio of at least 5.0% to be considered well-capitalized under the Prompt Corrective Action framework[61]. - The implementation of Basel III Capital Rules may adversely impact the Company's net income and return on equity, potentially requiring the raising of additional capital[55]. - Future changes in FDIC insurance assessments could materially affect the Company's earnings and the market value of its common stock[75]. Regulatory Environment and Compliance - The company is subject to extensive regulation under state and federal banking laws, emphasizing the importance of compliance and risk management[41]. - The Bank is subject to heightened supervision and regulation due to having consolidated assets exceeding $10 billion, including the requirement to establish board-level risk committees and perform annual stress tests[57]. - The Dodd-Frank Act mandates that banks with consolidated assets over $10 billion must comply with various consumer protection laws and regulations, impacting operational practices[63]. Community Engagement and Investment - The company funded approximately $1.70 billion in loans in 2023, demonstrating its commitment to community investment[90]. - The company had approximately 616 reportable small business loans totaling $205.3 million in CRA-reportable small business lending in 2023[90]. - The company awarded 60 students grants of $2,500 each in 2023, contributing over $2.8 million to the Hope Scholarship Foundation since its establishment in 2001[90]. - Approximately 43% of the bank's branches are located in low-to-moderate income areas, reflecting its focus on community service[90]. - The Bank received a "Satisfactory" rating in its most recent Community Reinvestment Act performance evaluation, indicating compliance in meeting the credit needs of local communities[65]. Operational Structure and Workforce - As of December 31, 2023, the company had 54 branches across the U.S., with 29 located in California, indicating a strong regional presence[36]. - The company has nine loan production offices in multiple states, enhancing its market reach and operational capabilities[36]. - As of December 31, 2023, the company had 1,244 full-time equivalent employees, a decrease from 1,549 employees at the end of 2022[85]. - The company’s employee diversity includes women making up 64% of the total workforce and 32% of senior vice president positions and above[86]. - The company’s benefits package includes medical, dental, vision healthcare, and 401(k) benefits, emphasizing employee well-being[84]. - The company’s strategic reorganization in Q3 2023 is expected to generate cost savings through increased efficiencies, including branch consolidations[85]. Competitive Landscape - The company competes with various financial institutions, including larger banks and non-bank financial service providers, highlighting a highly competitive environment[37]. - The Federal Reserve's monetary policies significantly impact the company's performance, particularly regarding interest rates and loan growth[39]. - The company has access to borrowing programs from the Federal Home Loan Bank with terms ranging from one day to thirty years at competitive market rates[31]. Financial Obligations - The company’s contractual obligations and commitments totaled $10.73 billion as of December 31, 2023, with significant amounts in time deposits and unfunded commitments to extend credit[349]. - The Bank's ability to make loans is limited to 25% of unimpaired capital for secured loans and 15% for unsecured loans, ensuring prudent lending practices[71]. - A special FDIC assessment of approximately 13.4 basis points per year was approved in November 2023, with an estimated total expense of $4.0 million recorded for 2023[74].

Hope Bancorp, Inc. (NASDAQ:HOPE) Q4 2023 Earnings Call Transcript January 30, 2024 12:30 PM ET Company Participants Angie Yang - Director of IR Kevin Kim - Chairman, President and CEO Julianna Balicka - CFO Conference Call Participants Nick Moutafakis - KBW Gary Tenner - D.A. Davidson Operator Good afternoon, and welcome to the Hope Bancorp 2023 Fourth Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opport ...

Efficiency Ratio Return on Avg Assets Anticipated positive impact from strategic reorganization expected to drive operational efficiencies and greater returns in the medium term. High single-digit % growth Targeting balanced growth across all business lines in normalized operating environment Planning to maintain loan-todeposit ratio <95% Loan Growth >10% Targeting medium-term annual revenue growth to outpace loan growth • Loan growth • Accelerated fee income growth • Expanding net interest margin due to im ...