Hope Bancorp(US:HOPE)2025-11-06 21:10Financial Performance - Net interest income for the three months ended September 30, 2025, was $126.64 million, an increase from $104.81 million in the same period of 2024, representing a growth of 20.8%[215] - Net income for the three months ended September 30, 2025, was $30.84 million, up from $24.16 million in 2024, reflecting a growth of 27.2%[215] - Net income for Q3 2025 was $30.8 million, or $0.24 per diluted share, an increase of 27.5% from $24.2 million, or $0.20 per diluted share in Q3 2024[228] - Year-to-date net income for the nine months ended September 30, 2025, was $24.1 million, or $0.19 per diluted share, a decrease of 68.1% from $75.3 million, or $0.62 per diluted share in the same period of 2024[229] - Net interest income for the nine months ended September 30, 2025, was $345.0 million, an increase of 5.9% from $325.7 million in the same period of 2024[234] - Noninterest income for the three months ended September 30, 2025, was $15.4 million, an increase of $3.5 million or 30.0% compared to $11.8 million for the same period in 2024[253] Asset and Equity Growth - Total assets of Hope Bancorp, Inc. reached $18.51 billion as of September 30, 2025, following the acquisition of Territorial Savings[212] - Total assets as of September 30, 2025, were $18.55 billion, compared to $17.37 billion as of September 30, 2024[243] - Total stockholders' equity as of September 30, 2025, was $2,255.9 million, compared to $2,169.8 million as of September 30, 2024[225] - Stockholders' equity rose to $2.26 billion at September 30, 2025, up from $2.13 billion at December 31, 2024, an increase of $121.4 million[319] - Total equity investments increased to $88.7 million, up $48.8 million or 122.1% from $39.9 million at December 31, 2024[283] Loan and Deposit Information - Average loans for the three months ended September 30, 2025, were $14.52 billion, up from $13.57 billion in the same period of 2024, representing a growth of 7.0%[217] - Total deposits reached $15.83 billion at September 30, 2025, an increase of $1.50 billion, or 10.5%, from $14.33 billion at December 31, 2024[303] - Loans receivable reached $14.59 billion, an increase of $968.6 million or 7.1% from $13.62 billion at December 31, 2024[287] - Loans held for sale rose to $33.1 million, an increase of $18.6 million or 128.5% from $14.5 million at December 31, 2024[286] Credit Quality and Losses - Provision for credit losses increased to $8.71 million for the three months ended September 30, 2025, compared to $3.28 million in the same period of 2024, indicating a rise of 165.5%[215] - Nonperforming loans to loans receivable remained stable at 0.77% as of September 30, 2025, compared to 0.76% in the previous year[219] - The allowance for credit losses (ACL) was $152.5 million, compared to $150.5 million at December 31, 2024, with an ACL coverage ratio of 1.05%[294] - Net loan charge-offs for the three months ended September 30, 2025, were 0.14% of average loans, compared to 0.17% for the same period in 2024[297] - Net loan charge-offs for the nine months ended September 30, 2025, totaled $25.38 million, compared to $13.72 million for the same period in 2024, reflecting an increase of 85.5%[298] Operational Efficiency - The efficiency ratio improved to 68.20% for the three months ended September 30, 2025, down from 69.67% in the same period of 2024[215] - Noninterest expense for Q3 2025 was $96.9 million, an increase of 19.2% from $81.3 million in Q3 2024[224] - The efficiency ratio excluding notable items for Q3 2025 was 67.52%, compared to 68.44% in Q3 2024[224] Acquisition Impact - The Company completed the acquisition of Territorial Savings Bank on April 2, 2025, becoming the largest regional bank serving multicultural customers across the continental U.S. and Hawaii[230] - The bank's common stock issued as consideration in the Territorial acquisition amounted to $73.3 million during the nine months ended September 30, 2025[319] - Salaries and employee benefits rose by $10.8 million, or 24.3%, for Q3 2025, driven by an increase in headcount post-Territorial acquisition, with full-time equivalent employees at 1,452[261] - Occupancy expense increased by $2.2 million, or 31.9%, for Q3 2025, attributed to the addition of 29 branches from the Territorial acquisition[262] Interest Rates and Margins - The net interest margin for the three months ended September 30, 2025, was 2.89%, an increase from 2.55% in the same period of 2024[215] - The weighted average yield on loans decreased to 5.93% for Q3 2025, down 23 basis points from 6.16% in Q3 2024[237] - The weighted average cost of deposits for Q3 2025 was 2.88%, down 56 basis points from 3.44% in Q3 2024, influenced by lower market interest rates and the acquisition of lower-cost deposits[240] Tax and Regulatory Information - The company recorded an income tax provision of $5.6 million on pretax income of $36.5 million for Q3 2025, resulting in an effective tax rate of 15.40%[268] - Total tax credits and benefits from affordable housing partnerships were approximately $3.4 million for Q3 2025, compared to $2.8 million for the same period in 2024[271] - The bank's total capital ratio was 13.83% as of September 30, 2025, exceeding the required well-capitalized ratio[322] - The bank's leverage capital ratio was 10.85% as of September 30, 2025, indicating strong capital management[322]