Financial Performance - Net income for 3Q23 was $30 million, or $025 per diluted share[2] - Net interest income for 3Q23 was $135 million, a 4% increase QoQ, driven by net interest margin expansion of +13 bps QoQ[2] - Noninterest income for 3Q23 was $8 million, compared to $17 million in 2Q23[46, 60] Balance Sheet Strength - Total capital ratio was 1323% at 9/30/23[2] - Tangible common equity (TCE) ratio was 796% at 9/30/23[2] - Available borrowing capacity, cash & equivalents, & unpledged investment securities totaled $83 billion, representing 53% of deposits, at 9/30/23[2, 16, 21] - Total deposits were $157 billion at 9/30/23, a 1% increase QoQ, driven by a 3% QoQ growth in customer deposits[2, 26] - Gross loans were $143 billion at 9/30/23, a 4% decrease QoQ[2] Asset Quality - Nonperforming assets (NPA) were $62 million at 9/30/23, a 20% decrease QoQ[2] - NPAs represented 031% of total assets at 9/30/23, an improvement from 038% at 6/30/23[2] - Net charge-offs for 3Q23 were $31 million, including an idiosyncratic charge-off of $234 million[2, 70]

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, 2023 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 Identificati ...

Hope Bancorp, Inc. (NASDAQ:HOPE) Q2 2023 Earnings Conference Call July 24, 2023 12:30 PM ET Company Participants Angie Yang - Director, Investor Relations Kevin Kim - Chairman, President and Chief Executive Officer Julianna Balicka - Executive Vice President and Chief Financial Officer Peter Koh - Senior Executive Vice President and Chief Operating Officer Conference Call Participants Christopher McGratty - KBW Matthew Clark - Piper Sandler Gary Tenner - D.A. Davidson Operator Good morning and welcome to th ...

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, 2023 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 Identificat ...

Hope Bancorp, Inc. (NASDAQ:HOPE) Q1 2023 Earnings Conference Call April 25, 2023 12:30 PM ET Company Participants Angie Yang - Director, Investor Relations Kevin Kim - Chairman, President & Chief Executive Officer David Malone - Interim Chief Financial Officer Peter Koh - Chief Operating Officer Julianna Balicka - Chief Financial Officer Conference Call Participants Matthew Clark - Piper Sandler Gary Tenner - D.A. Davidson Chris McGratty - KBW Tim Coffey - Janney Operator Good afternoon and good morning, a ...

Forward Looking Statements & Additional Disclosures 2 12.25% 0.00% | --- | --- | --- | --- | --- | |----------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | 2023 First Quarter Earnings Conference Call | | | | | | Tuesday, April 25, 2023 | | | | | This presentation may contain statements regarding future events or the future financial performance of Hope Bancorp, Inc. (the "Company") that constitute forward-looking statements within the meaning of ...

February 15-17, 2023 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 opportun ...

Financial Instruments and Capital Management - As of December 31, 2022, the company had issued $126.0 million in pooled trust preferred securities through nine wholly-owned subsidiary grantor trusts[35] - The company issued $217.5 million in aggregate principal amount of 2.00% convertible senior notes maturing on May 15, 2038, as part of its share repurchase plan[36] - The company is subject to capital adequacy requirements based on the Basel III Capital Rules, effective January 1, 2015[52] - Hope Bancorp and the Bank met all Basel III Capital Rules requirements as of December 31, 2022, including a common equity Tier 1 capital ratio of 7.0%[55] - The minimum capital ratios under Basel III include 4.5% common equity Tier 1 to risk-weighted assets and 6.0% Tier 1 capital to risk-weighted assets[54] - The capital conservation buffer of 2.5% is required above the regulatory minimum capital ratios, impacting the ability to pay dividends and repurchase shares[54] - The Bank's ability to pay dividends is subject to restrictions under the Delaware General Corporation Law and the FRB's policies[74] - The federal banking agencies have the authority to impose higher capital ratios and restrictions on the Bank if its financial condition is deemed unsatisfactory[73] Regulatory Compliance and Supervision - The company is subject to extensive regulation and supervision under state and federal banking laws, emphasizing capital planning and liquidity management[41] - The company has not elected financial holding company status, limiting its engagement in broader financial activities[46] - The company must seek approval from the Federal Reserve Board prior to acquiring significant assets or controlling shares of other banks[47] - The Dodd-Frank Act requires banks with consolidated assets over $10 billion to establish board-level risk committees and perform annual stress tests[57] - The Bank must comply with numerous federal and state consumer protection statutes, which regulate customer interactions and impose penalties for non-compliance[62][63] Deposits and Funding Sources - FDIC-insured deposits serve as the primary source of funds for the company, which actively manages its cost of funds in response to market conditions[32] - The company attracts both short-term and long-term deposits through a wide range of products, including personal and business checking accounts, savings accounts, and retirement accounts[31] - The company may borrow from the Federal Home Loan Bank of San Francisco and the Federal Reserve Bank to manage liquidity needs[33] - The FDIC insures customer deposits up to $250,000 per customer, and the termination of deposit insurance could lead to the revocation of the Bank's charter[69] Community Engagement and Social Responsibility - The Bank received a "Satisfactory" rating in its most recent Community Reinvestment Act performance evaluation released by the FDIC in 2021[64] - The company funded approximately $4.45 billion in loans in 2022[86] - The company had approximately $315.8 million in CRA-reportable small business lending in 2022[86] - The company awarded 60 students grants of $1,500 each in 2022, contributing over $2.3 million to the Hope Scholarship Foundation since its establishment in 2001[86] - The company conducted nearly 731 hours of CRA-reportable volunteer hours in 2022[86] - The company has invested in affordable housing partnership investments, CRA investments, and CDFI investments[86] - The company has commitments to fund investments in affordable housing partnerships totaling $11.79 million[349] - The company launched its initial Environmental, Social and Governance (ESG) report in 2022, outlining its ESG progress and compliance[85] Workforce and Employment - As of December 31, 2022, the company had 1,549 full-time equivalent employees, an increase from 1,476 employees at the end of 2021[83] - The company has a competitive benefits package that includes medical, dental, and vision healthcare, 401(k) benefits, and tuition assistance[82]

DDA MMA/NOW Savings Time Cost of Interest-Bearing Deposits $9.1 $9.3 $9.1 $9.7 $10.3 $6.0 $5.7 $5.7 $5.7 $5.2 4Q21 1Q22 2Q22 3Q22 4Q22 $15.45 $15.48 $15.07 $14.95 $14.80 10 • Total nonperforming assets decreased 28% Q-o-Q, reflecting reductions in all NPL categories $257.2 $167.0 $95.8 $79.4 $157.3 $242.4 $226.7$244.7$204.7 $104.1 3.58% 2.80%2.34%1.83% 1.70% 4Q21 1Q22 2Q22 3Q22 4Q22 $499.6 $393.6$340.5$284.1 $261.3 • Special mention loans increased 98% Q-o-Q $1.5-$11.0 -0.07% -0.52% (Credit) for Credit Loss ...

Financial Data and Key Metrics Changes - The company reported net income of $51.7 million, or $0.43 per share, with a decrease in pre-provision net revenue (PPNR) to $78.1 million, attributed to increased deposit costs in a competitive market [42][95] - Net interest income totaled $150.5 million for Q4 2022, representing a decrease of 1.7% from the previous quarter, despite a 2.1% increase in average earning assets [95] - The net interest margin (NIM) decreased by 13 basis points quarter-over-quarter to 3.36%, with an overall increase of 23 basis points for 2022 [21][28] Business Line Data and Key Metrics Changes - C&I loans represented 54% of total loan fundings in Q4, with an average rate increase of 162 basis points over the preceding quarter [18][43] - Total criticized and classified loans decreased by 8% in Q4 and by 48% for the full year, reflecting improved asset quality and proactive derisking efforts [25][56] - Commercial real estate loans funded in Q4 were $324 million, reflecting a decrease due to lower loan demand attributed to higher interest rates [19][43] Market Data and Key Metrics Changes - The company’s total deposits increased by 1.5% from the previous quarter, while the net loan to deposit ratio decreased to 97.2% [50] - Non-interest income for Q4 was $12.1 million, a decrease of 9% from the previous quarter, primarily due to lower gains on SBA loan sales [49] - The average rate on total new loan production increased by 134 basis points to 6.71% in Q4 [45] Company Strategy and Development Direction - The company plans to maintain a selective approach to new loan production, focusing on higher yielding C&I loans that are more resistant to recessionary pressures [30][57] - There is an emphasis on building a lower risk, diversified loan portfolio, with C&I loans increasing by 21.4% in 2022 [20] - The company expects to generate mid-single digit loan growth in 2023, funded primarily by deposit growth [70][97] Management Comments on Operating Environment and Future Outlook - Management acknowledged that 2023 will be challenging due to economic uncertainty but expressed confidence in the company’s ability to manage through downturns [32][30] - The expectation is that pressures on margins and profitability from rising deposit costs will diminish as the year progresses [32] - The company is focused on disciplined expense controls while leveraging investments made in talent and capabilities over the past few years [58] Other Important Information - The Board of Directors declared a quarterly cash dividend of $0.14 per share, unchanged from the previous quarter [26] - The company recorded a provision for credit losses of $8.2 million in Q4, with an allowance for credit loss coverage ratio of 1.05% of total loans [52] Q&A Session Summary Question: What drove the decline in non-interest bearing deposits? - Management indicated that the decline was largely due to the macroeconomic and market interest rate environment, with a migration from non-interest bearing to interest-bearing deposits [33][35][61] Question: What are the expectations for balance sheet growth in 2023? - The company plans to fund new loan production mainly with deposits, expecting deposit growth to be comparable to loan growth [70] Question: Can you provide color on the current lending pipeline? - Management noted that the pipeline is smaller due to a selective lending practice and the impact of higher interest rates on loan demand [72][89]