Hope Bancorp(US:HOPE)2021-04-29 20:23Financial Performance - Net income was $43.7 million[3], resulting in diluted earnings per share (EPS) of $0.35[3] - Net interest income before provision for credit losses increased by 2% to $122.6 million[3] - Noninterest expenses decreased, leading to an improved efficiency ratio by 16bps quarter-over-quarter to 53.61%[3] Loan Portfolio - Gross loans totaled $13.70 billion[3] - New loan originations funded were $847 million, including $304.7 million in second-round PPP fundings[3] - Loans receivable increased by 1%, or 4% annualized[3,6] Deposit Trends - Total deposits reached $14.30 billion[3] - Noninterest-bearing deposits increased by 13% quarter-over-quarter, reaching a record high of 38% of total deposits[3,18] - Time deposits decreased by 11% quarter-over-quarter, accounting for 25% of total deposits[3,18] - The cost of deposits decreased for the sixth consecutive quarter, down 12bps quarter-over-quarter[3,18] Asset Quality - Nonperforming loans increased by $29 million quarter-over-quarter due to one large loan[3,24] - Special Mention loans increased by $96 million quarter-over-quarter, largely reflecting modified hotel/motel loans[3,24] - Net charge-offs were $2.1 million, or 0.06% of average loans receivable on an annualized basis[3,24] COVID-19 Loan Modifications - Active COVID-19 modifications totaled $949 million, representing 6.9% of the total loan portfolio[8] - Hotel/Motel modifications represented 33% of that portfolio, or $535 million[8,10] - Retail CRE modifications represented 8% of that portfolio, or $189 million[8,10] - $381 million of hotel/motel COVID-19 modifications and $115 million of retail CRE COVID-19 modifications were scheduled to expire during 2Q21[10]