Hope Bancorp(HOPE) - 2025 Q1 - Quarterly Results

Financial Performance - For Q1 2025, net income was $21.1 million, or $0.17 per diluted share, down from $24.3 million in Q4 2024[1] - Noninterest income for Q1 2025 totaled $15.7 million, a 5% increase from $14.9 million in Q4 2024 when excluding a one-time gain[5] - The provision for credit losses significantly decreased by 52% to $4,800,000 from $10,000,000 in the previous quarter[31] - Return on average assets (ROA) was 0.49% for the quarter, down from 0.57% in the previous quarter[33] - Return on average equity (ROE) decreased to 3.93% from 4.51% in the prior quarter[33] - Earnings per common share (diluted) was $0.17, down from $0.20 in the previous quarter[31] - Pre-provision net revenue (PPNR) for the three months ended 3/31/2025 was $32,644 million, down from $40,426 million for the previous quarter[50] - Efficiency ratio excluding notable items was 69.82% for the three months ended 3/31/2025, compared to 65.81% for the previous quarter[52] Asset and Deposit Management - Total deposits increased by 1% to $14.49 billion in Q1 2025, driven by a 5% rise in money market deposits[12] - Total assets remained stable at $17.07 billion as of March 31, 2025, compared to $17.05 billion at December 31, 2024, reflecting no significant change[29] - Deposits increased by 1% to $14.49 billion at March 31, 2025, from $14.33 billion at December 31, 2024[29] - Noninterest bearing demand deposits fell by 6% to $3,344,732 million, while interest bearing deposits increased by 1% to $11,126,727 million[37] - Total deposits increased by 1% to $14,488,319 million compared to $14,327,489 million in the previous quarter[37] Loan and Credit Quality - Net charge-offs for Q1 2025 were $8.3 million, or 0.25% of average loans, down from $12.8 million in Q4 2024[17] - Nonperforming assets decreased by 8% quarter-over-quarter to $83.9 million, representing 0.49% of total assets[16] - The allowance for credit losses was $147.4 million, unchanged at 1.11% of loans receivable[20] - Total accruing delinquent loans 30-89 days past due increased to $39,646 million as of 3/31/2025, up from $13,845 million on 12/31/2024[45] - Total criticized loans remained relatively stable at $448,723 million as of 3/31/2025, compared to $449,969 million on 12/31/2024[45] Capital and Equity - As of March 31, 2025, the Common Equity Tier 1 Capital Ratio was 13.28%, up from 13.06% at December 31, 2024, and 12.47% at March 31, 2024[21] - Total stockholders' equity increased to $2.16 billion, or $17.84 per common share, reflecting a 1% increase from $2.13 billion, or $17.68 per common share, at December 31, 2024[21] - Tangible common equity (TCE) per share rose to $13.99 at March 31, 2025, compared to $13.81 at December 31, 2024, marking an increase of 1.3%[22] - The TCE ratio improved to 10.20% at March 31, 2025, up 15 basis points from 10.05% at December 31, 2024, and up 87 basis points from 9.33% at March 31, 2024[22] - The leverage ratio improved to 11.92% from 11.83% in the previous quarter[39] Mergers and Acquisitions - The acquisition of Territorial Bancorp added approximately $1.7 billion in core deposits and $1.0 billion in residential mortgage loans[2] - The merger with Territorial Bancorp was completed on April 2, 2025, resulting in the issuance of 6,976,754 shares, valued at $73.3 million[22] Operational Metrics - Total interest income for the same period was $217,166,000, down 4% from $226,621,000 in the prior quarter[31] - Total noninterest expense increased by 8% to $83,861,000 compared to $77,590,000 in the previous quarter[31] - The efficiency ratio (not annualized) was 71.98%, compared to 65.75% in the previous quarter, indicating a decline in operational efficiency[33] - Gross loans decreased by 2% to $13,335,477 million compared to $13,632,763 million in the previous quarter[37] - Average assets decreased to $17,084,378 million for the three months ended 3/31/2025, down from $17,228,881 million in the previous quarter[50] Upcoming Events - The investor conference call to discuss the first quarter results is scheduled for April 22, 2025, at 9:30 a.m. Pacific Time[23]