Hope Bancorp(US:HOPE)2025-10-28 12:06Financial Performance - Net income for Q3 2025 was $30.8 million, a 28% increase year-over-year from $24.2 million in Q3 2024[2] - Excluding notable items, net income was $31.6 million, up 26% from $25.2 million year-over-year[3] - Noninterest income for Q3 2025 was $15.4 million, a significant recovery from a net loss of $23.0 million in Q2 2025[7] - The company reported net income of $30,843 million for the three months ended September 30, 2025, compared to a net loss of $27,881 million in the previous quarter[46] - Net income excluding notable items for the three months ended September 30, 2025, was $31,593, compared to $24,531 in the previous quarter and $25,171 year-over-year[50] Interest Income and Margin - Net interest income for Q3 2025 totaled $126.6 million, an 8% increase from $117.5 million in Q2 2025[5] - The net interest margin expanded by 20 basis points to 2.89% in Q3 2025, the widest since 2012[3] - Total interest income for the three months ended September 30, 2025, was $244,785, reflecting a 2% increase from $239,170 in the prior quarter[28] - Net interest income for the three months ended September 30, 2025, was $126,642, reflecting a net interest margin of 2.89%[32] - The company reported a net interest spread of 1.85% for the three months ended September 30, 2025[32] Assets and Loans - Total assets as of September 30, 2025, were $18.51 billion, slightly down from $18.55 billion at June 30, 2025[9] - Gross loans increased to $14.62 billion, up 1.2% from $14.45 billion at June 30, 2025[9] - Total assets were $18.51 billion as of September 30, 2025, showing a 7% increase from $17.35 billion a year earlier[26] - Gross loans, including loans held for sale, rose by 1% to $14.62 billion at September 30, 2025, compared to $14.45 billion at June 30, 2025[26] - The average balance of loans for the nine months ended September 30, 2025, was $14,136,511, generating interest income of $623,261 at a yield of 5.89%[34] Deposits - Total deposits decreased by 1% to $15.83 billion, reflecting a decrease in brokered deposits[9] - Deposits decreased by 1% to $15.83 billion at September 30, 2025, from $15.94 billion at June 30, 2025[26] - Total deposits as of September 30, 2025, were $15,911,601, with an interest expense of $115,425 and an average cost of 2.88%[34] - Total deposits decreased by 1% to $15,831,262 compared to the previous quarter, but increased by 7% from the same period last year[36] Credit Losses and Allowance - The allowance for credit losses was $152.5 million as of September 30, 2025, up from $149.5 million at June 30, 2025, with a coverage ratio of 1.05% of loans receivable[15] - The provision for credit losses for Q3 2025 was $8.7 million, a decrease from $15.0 million in Q2 2025, primarily due to lower net charge-offs[15] - The provision for credit losses decreased by 42% to $8,710 from $15,000 in the previous quarter[28] - The allowance for credit losses to loans receivable ratio was 1.05% as of September 30, 2025, with an allowance for credit losses to nonperforming loans ratio of 135.98%[40] Equity and Capital Ratios - Total stockholders' equity increased by 1% to $2.26 billion at September 30, 2025, compared to $2.22 billion at June 30, 2025[17] - The Common Equity Tier 1 Capital Ratio was 12.12% as of September 30, 2025, up from 12.06% at June 30, 2025, exceeding the minimum guideline of 6.50%[17] - The common equity tier 1 ratio stood at 12.12%, slightly up from 12.06% in the previous quarter but down from 13.07% a year ago[38] - The total capital ratio was 13.83%, slightly up from 13.76% in the previous quarter but down from 14.82% a year ago[38] Efficiency and Expenses - The efficiency ratio, excluding notable items, improved to 67.5% in Q3 2025 from 69.1% in Q2 2025[7] - Total noninterest expense decreased by 12% to $96,861 from $109,473 in the previous quarter[28] - The efficiency ratio (not annualized) improved to 68.20% for the three months ended September 30, 2025, from 115.75% in the previous quarter[30] - The efficiency ratio excluding notable items improved to 67.52% for the three months ended September 30, 2025, from 69.09% in the previous quarter[50] Nonperforming Assets - Total nonperforming assets as of September 30, 2025, were $112,157 million, maintaining a nonperforming assets to total assets ratio of 0.61%[40] - Nonaccrual loans totaled $110,008 million as of September 30, 2025, with commercial real estate (CRE) loans accounting for $54,016 million[40] - Total accruing delinquent loans 30-89 days past due increased to $20,903 million as of September 30, 2025, from $7,750 million in the previous quarter[42] Upcoming Events - The investor conference call to discuss Q3 2025 results is scheduled for October 28, 2025, at 9:30 a.m. Pacific Time[19]