Financial Data and Key Metrics Changes - Net income for Q3 2025 totaled $31 million, up 28% year-over-year from $24 million in Q3 2024 and up from a net loss of $28 million in Q2 2025 [5][6] - Net interest income reached $127 million for Q3 2025, an increase of 8% from the prior quarter and up 21% from Q3 2024 [10] - Net interest margin expanded by 20 basis points to 2.89% for Q3 2025, marking the best linked quarter expansion since 2012 [7][10] Business Line Data and Key Metrics Changes - Loan growth was observed across all major segments: C&I, commercial real estate, and residential mortgage, with gross loans totaling $14.6 billion, up 1.2% quarter-over-quarter [6][8] - Non-interest income showed growth in service fees on deposit accounts, international banking fees, foreign exchange, and wire transfer fees [11] Market Data and Key Metrics Changes - Deposits totaled $15.8 billion as of September 30, 2025, reflecting a 1% decrease from $15.9 billion as of June 30, primarily due to a reduction in brokered deposits [8] - Non-interest-bearing deposits increased by 1% quarter-over-quarter to $3.5 billion [8] Company Strategy and Development Direction - The company is focused on strengthening its deposit franchise and deepening primary banking relationships while optimizing deposit mix and pricing [8] - The outlook for 2025 includes expectations for high single-digit loan growth and approximately 10% growth in net interest income [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive profitable growth and create long-term value for stockholders, supported by strategic additions to banking teams [16] - The company anticipates a fourth quarter effective tax rate of approximately 14%, excluding notable items [16] Other Important Information - The Board declared a quarterly common stock dividend of $0.14 per share, payable on November 21, 2025 [8] - The company reported a 57% reduction in net charge-offs, reflecting improved asset quality [7][13] Q&A Session Summary Question: Spot rate on deposits and average margin for September - The spot rates for total deposits and interest-bearing deposits were 2.82% and 3.62%, respectively, with the average margin for September at 2.96% [19][21] Question: Update on Territorial acquisition and cost savings - The company is focusing on stabilizing and expanding operations post-acquisition, with incremental cost savings being realized [22] Question: Purchase accounting impact for the quarter - Loan accretion from the acquisition was $5 million for the quarter [25][26] Question: Maturing CDs in Q4 - The company has $2.3 billion of CDs maturing in Q4 at an average rate of 4.08% [32][34] Question: Loan growth outlook and impact of rates - The company has a strong loan pipeline going into Q4 and expects to maintain loan growth despite potential rate decreases [52] Question: Competitive environment for deposits - The company has reduced CD pricing following the Fed funds cut and is optimistic about managing deposit costs effectively [54][55]

Hope Bancorp (NasdaqGS:HOPE) Q3 2025 Earnings Call October 28, 2025 12:30 PM ET Company ParticipantsKevin Kim - Chairman, President, and CEOTim Coffey - Managing Director and Associate Director of Depository ResearchJulianna Balicka - CFOPeter Koh - COOKelly Motta - Director of Equity ResearchMaxime Olivan - Strategic Finance ManagerConference Call ParticipantsMatthew Clark - Principal of Equity Research and Senior Research AnalystGary Tenner - Managing Director and Senior Research AnalystOperatorToday, and ...

Financial Data and Key Metrics Changes - Net income for Q3 2025 totaled $31 million, up 28% year over year from $24 million in Q3 2024, and improved from a net loss of $28 million in Q2 2025 [6][7] - Net interest income reached $127 million, an increase of 8% from the prior quarter and up 21% from Q3 2024 [10] - Net interest margin expanded by 20 basis points to 2.89% for Q3 2025, marking the best linked quarter expansion since 2012 [7][10] Business Line Data and Key Metrics Changes - Loan growth was observed across all major segments: commercial and industrial loans, commercial real estate loans, and residential mortgage loans [7][9] - Gross loans totaled $14.6 billion, up 1.2% quarter over quarter, equivalent to 5% annualized growth [8][9] - Non-interest income showed quarter-over-quarter growth in service fees, international banking fees, and wire transfer fees [11] Market Data and Key Metrics Changes - Deposits totaled $15.8 billion, reflecting a 1% decrease from $15.9 billion as of June 30, primarily due to a reduction in brokered deposits [8] - Non-interest-bearing deposits increased to $3.5 billion, up 1% quarter over quarter [8] Company Strategy and Development Direction - The company is focused on strengthening its deposit franchise and deepening primary banking relationships while optimizing deposit costs [8][9] - Continued investments in talent are aimed at driving sustainable growth and enhancing corporate and commercial banking capabilities [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving high single-digit loan growth in 2025 and expects net interest income growth of approximately 10% [16] - The company anticipates non-interest income growth of approximately 30% for 2025, excluding notable items from the second quarter [16] Other Important Information - The board declared a quarterly common stock dividend of $0.14 per share, payable on November 21, 2025 [8] - The allowance for credit losses totaled $152.5 million at September 30, 2025, with a coverage ratio of 1.05% of loans receivable [14] Q&A Session Summary Question: Spot rate on deposits and average margin for September - The spot rate for total deposits was 2.82% and for interest-bearing deposits was 3.62%, with the average margin for September at 2.96% [20] Question: Update on Territorial Bancorp acquisition - Operations are being stabilized and expanded, with incremental cost savings being realized, but no significant updates reported this quarter [21] Question: Purchase accounting impact this quarter - Loan accretion for the quarter was $5 million, up from $4 million in the previous quarter [24][25] Question: Maturing CDs in the fourth quarter - There are $2.3 billion of maturing CDs at an average rate of 4.08% [31] Question: Expense side and hiring process - New team members are being added in strategic segments, with a focus on strengthening existing capabilities and optimistic growth prospects [39][41] Question: Impact of government shutdown on SBA loan sales - The SBA has suspended acceptance of new loan applications, but existing loans with approval numbers will proceed as usual [44][45] Question: Challenges with non-accrual loans in commercial real estate - Non-performing loans have been relatively flat, with ongoing efforts to resolve problem credits [46] Question: Loan growth outlook and impact of potential rate decreases - A strong loan pipeline is expected to support growth, with improvements in commercial and industrial loans [51]

Financial Data and Key Metrics Changes - The meeting confirmed that a total of 39,050,213 shares of common stock were outstanding and entitled to vote, with 36,497,062 shares represented by proxy, indicating approximately 93.46% of all shares entitled to vote were present, thus constituting a quorum [6][8]. Business Line Data and Key Metrics Changes - The meeting included proposals for the election of six directors and the ratification of KPMG LLP as the Independent Auditor for the fiscal year ending June 27, 2026, which were all approved [11][15]. Market Data and Key Metrics Changes - No specific market data or key metrics changes were discussed during the meeting. Company Strategy and Development Direction - The company is focused on enhancing its equity and incentive compensation plans, with proposals to increase share reserves under these plans by 1,900,000 shares and 1,500,000 shares respectively [12]. Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting. Other Important Information - The final report of the Inspector of Election will be filed with the records of the meeting, and results will be reported on a Form 8-K to be filed with the SEC within the next four business days [17]. Q&A Session Summary Question: Were there any questions on Proposals 1 through 4? - No specific questions were recorded during the meeting regarding the proposals [14].

Financial Data and Key Metrics Changes - The company reported GAAP net income per share of $0.57 for Q3 2025, up from $0.52 in the prior quarter and down from $0.62 in Q3 2024 [21] - Core earnings per share remained stable at $0.50, consistent with the prior quarter but down from $0.58 a year ago [21] - The company generated $247 million in net realized gains during Q3 2025, marking the second highest net realized gain quarter since inception [21][22] - Total portfolio at fair value increased to $28.7 billion, up from $27.9 billion in the previous quarter and $25.9 billion a year ago [22] Business Line Data and Key Metrics Changes - The company originated over $3.9 billion in new investment commitments in Q3 2025, an increase of more than 50% from the previous quarter [28] - Approximately 60% of Q3 originations were with new borrowers, indicating a shift towards a more active M&A-driven market [29] - The weighted average organic EBITDA growth for portfolio companies was over 10%, significantly higher than market growth rates [34] Market Data and Key Metrics Changes - The company reviewed over $875 billion in estimated transactions over the last 12 months, a record for the company, indicating market expansion [8] - Credit spreads remained stable, with new first lien commitments completed at spreads consistent with the prior quarter and 20 basis points higher than the prior 12-month average [30] Company Strategy and Development Direction - The company aims to maintain its current dividend level despite potential headwinds from lower short-term interest rates, supported by strong core earnings and a significant amount of spillover income [17][20] - The focus remains on investing in high-quality credits and maintaining rigorous credit standards while being selective in deal flow [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the economy and the ongoing strength of the M&A market, indicating that the company is at the early end of a new cycle [60] - The company does not foresee significant impacts from recent industry events, highlighting its differentiated credit selection and documentation standards [50][52] Other Important Information - The company has a strong liquidity position totaling $6.2 billion, including available cash, and a debt-to-equity ratio of 1.02x [25] - The fourth quarter 2025 dividend is set at $0.48 per share, continuing a record of stable or increasing dividends for 65 consecutive quarters [25] Q&A Session Summary Question: Dividend coverage and allocation of capital - Management confirmed that both vehicles will be allocated deals based on available capital math, with expectations for increased junior capital opportunities as transaction activity rises [40][43] Question: Industry competition and market dynamics - Management described the competitive environment as consistent with historical trends, noting that recent events have not significantly impacted their market [50][52] Question: Credit cycle indicators - Management indicated that underlying EBITDA growth and access to capital are key indicators to monitor for potential tightening in underwriting standards [58][60] Question: Use of at-the-market program - Management has been reducing the amount of at-the-market issuances, aiming to increase leverage over time while maintaining financial flexibility [68][70] Question: Spread dynamics in the broadly syndicated market - Management noted that while spreads in the broadly syndicated market may widen, the company operates with a more stable pricing model that does not move in lockstep with the broader market [81][82]

Financial Data and Key Metrics Changes - The company reported GAAP net income per share of $0.57 for Q3 2025, up from $0.52 in the prior quarter and down from $0.62 in Q3 2024 [21] - Core earnings per share remained stable at $0.50, consistent with the prior quarter but down from $0.58 a year ago [21] - The annualized return on equity was reported at 10% [6] - The total portfolio at fair value increased to $28.7 billion, up from $27.9 billion in the previous quarter and $25.9 billion a year ago [22] Business Line Data and Key Metrics Changes - The company originated over $3.9 billion in new investment commitments in Q3 2025, an increase of more than 50% from the previous quarter [27] - Approximately 60% of the third quarter originations were with new borrowers, indicating a shift in market dynamics [28] - The weighted average organic EBITDA growth for portfolio companies was over 10%, significantly higher than the broader market growth rates [33] Market Data and Key Metrics Changes - The company reviewed over $875 billion in estimated transactions over the last 12 months, a record for the firm [8] - The non-accrual rate at cost ended the quarter at 1.8%, down 20 basis points from the prior quarter, remaining well below historical averages [32] - The company experienced increased transaction activity levels in Q4 2025, with total commitments reaching $735 million as of October 23, 2025 [34] Company Strategy and Development Direction - The company aims to maintain its current dividend level despite potential headwinds from lower short-term interest rates, supported by a strong balance sheet and spillover income [17][20] - The focus remains on investing in high-quality credits and maintaining rigorous credit standards while being selective in deal flow [35] - The company is positioned to capitalize on higher-yielding opportunities within its non-qualifying asset basket [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in covering dividends in the foreseeable future, citing strong core earnings and spillover income as buffers [44] - The current market environment is viewed as favorable for M&A activity, with expectations of continued growth in transaction volumes [59] - Management noted that the recent events in the broadly syndicated market have not significantly impacted their competitive landscape [50] Other Important Information - The company recognized a $262 million realized gain on the sale of Potomac Energy Center, contributing to strong net realized gains for the quarter [10] - The company has a significant amount of dry powder, totaling $6.2 billion in liquidity, positioning it well for future investments [25] - The fourth quarter 2025 dividend is set at $0.48 per share, continuing a record of stable or increasing dividends for 65 consecutive quarters [25] Q&A Session Summary Question: Dividend coverage and allocation of capital - Management confirmed that both vehicles will be allocated deals based on available capital math, with expectations for more junior capital opportunities as transaction activity increases [38][42] Question: Industry competition and market dynamics - Management described the competitive environment as consistent with historical trends, noting that recent events have not significantly impacted their market position [49][50] Question: Credit cycle indicators - Management indicated that they are monitoring underlying EBITDA growth and access to capital as key indicators for potential tightening in underwriting standards [56][58] Question: Expected pace of exits and portfolio turnover - Management stated that exits typically move in lockstep with overall transaction volume, and the current quarter showed strong net gains despite increased exits [87]

Financial Data and Key Metrics Changes - The company reported a total of 39,050,213 shares of common stock outstanding as of September 4, 2025, with approximately 93.46% represented at the meeting [6][8]. Business Line Data and Key Metrics Changes - The meeting included proposals for the election of six directors and the ratification of KPMG LLP as the Independent Auditor for the fiscal year ending June 27, 2026, indicating ongoing governance and oversight [11][12]. Market Data and Key Metrics Changes - No specific market data or key metrics were discussed in the provided content. Company Strategy and Development Direction and Industry Competition - The company is focused on governance through the election of directors and the approval of compensation plans, which suggests a commitment to aligning executive incentives with shareholder interests [11][12][15]. Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook in the provided content. Other Important Information - The company plans to report the final results of the voting on a Form 8-K to be filed with the SEC within the next four business days, ensuring transparency and compliance with regulatory requirements [17]. Q&A Session All Questions and Answers Question: Were there any questions on Proposals 1 through 4? - No specific questions were recorded in the provided content, but the polls were declared closed shortly after, indicating that all voting participants had cast their votes [14].

Financial Data and Key Metrics Changes - The company reported GAAP net income per share of $0.57 for Q3 2025, an increase from $0.52 in the prior quarter and a decrease from $0.62 in Q3 2024 [20] - Core earnings per share remained stable at $0.50, consistent with the prior quarter but down from $0.58 a year ago [20] - The company generated $247 million in net realized gains during the third quarter, marking the second highest net realized gain quarter since inception [20][21] - The total portfolio at fair value increased to $28.7 billion, up from $27.9 billion in the previous quarter and $25.9 billion a year ago [21] Business Line Data and Key Metrics Changes - The company originated over $3.9 billion in new investment commitments in Q3, a more than 50% increase from the previous quarter [25] - Approximately 60% of third quarter originations were with new borrowers, indicating a shift towards a more active M&A-driven market [26] - The weighted average organic EBITDA growth for portfolio companies was over 10%, significantly higher than the broader market growth rates [32] Market Data and Key Metrics Changes - The company reviewed over $875 billion in estimated transactions over the last 12 months, a record for the company, indicating an expanding market [6] - The non-accrual rate at cost decreased to 1.8%, down 20 basis points from the prior quarter, remaining well below historical averages [31] - The company’s credit spreads remained stable, with new first lien commitments completed at spreads consistent with the prior quarter [27] Company Strategy and Development Direction - The company aims to maintain its current dividend level despite potential headwinds from lower short-term interest rates, supported by a strong balance sheet and spillover income [17][19] - The focus remains on investing in high-quality credits and maintaining rigorous credit standards while being selective in deal flow [34] - The company is leveraging its origination scale to capitalize on new opportunities and enhance its competitive advantages in the market [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the economy and the underlying businesses, with no signs indicating a nearing end of the current cycle [56] - The company anticipates continued strong transaction activity levels in Q4, with a backlog reaching a record of $3 billion [33] - Management highlighted that the recent events in the broadly syndicated market could provide opportunities for private credit to gain market share [50] Other Important Information - The company has a significant amount of dry powder, totaling $6.2 billion in liquidity, positioning it well to support existing and new portfolio companies [24] - The fourth quarter 2025 dividend is set at $0.48 per share, extending a record of stable or increasing dividends for 65 consecutive quarters [24] Q&A Session Summary Question: Dividend coverage and allocation of capital - Management confirmed that both vehicles will be allocated deals based on available capital math, with expectations for increased junior capital opportunities as transaction activity rises [38][40] Question: Spillover income and dividend support - Management expressed confidence in covering the dividend and noted that spillover income provides additional stability if core earnings temporarily drop below the dividend level [42][44] Question: Industry competition and market dynamics - Management described the competitive environment as consistent with historical trends, noting that recent events have not significantly impacted the competitive landscape [48][49] Question: Underwriting strictness and market signals - Management indicated that underlying EBITDA growth and access to capital are key factors to monitor for potential changes in underwriting strictness [56] Question: Expected pace of exits and portfolio turnover - Management stated that exits typically move in lockstep with overall transaction volume, and the net number is more important to consider [82] Question: Other income and fee arrangements - Management clarified that the high other income was mainly from transaction or amendment-type fees and is not necessarily replicable every quarter [86]

Financial Data and Key Metrics Changes - The meeting confirmed that the 2025 Annual Report, including financial statements certified by KPMG LLP, was made available to stockholders [4] - A total of 39,050,213 shares of common stock were outstanding and entitled to vote, with approximately 93.46% represented by proxy at the meeting [6] Business Line Data and Key Metrics Changes - The meeting included proposals for the election of six directors and the ratification of KPMG LLP as the Independent Auditor for the fiscal year ending June 27, 2026 [11][12] - The share reserve under the amended and restated 2019 Equity and Incentive Compensation Plan will be increased by 1,900,000 shares if approved [12] Market Data and Key Metrics Changes - No specific market data or key metrics changes were discussed during the meeting [0] Company Strategy and Development Direction and Industry Competition - The company is focused on maintaining strong governance through the election of directors and the approval of compensation plans for executive officers [11][12] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during this meeting [0] Other Important Information - The final report of the Inspector of Election will be filed with the records of the meeting, and results will be reported on a Form 8-K to be filed with the SEC within the next four business days [17] Q&A Session All Questions and Answers Question: Were there any questions on Proposals 1 through 4? - The polls were closed, and the results indicated that all proposals were approved, including the election of directors and the ratification of KPMG LLP as the Independent Auditor [14][15]

Financial Data and Key Metrics Changes - The company reported earnings per share of $1.19 for Q3 2025, down from $1.36 in the previous quarter and $1.32 in Q3 2024 [5][24] - Return on average assets was 1.11% and pre-provision return on average assets was 1.61% [6] - Net interest income increased by $5.5 million compared to the previous quarter, reaching $158 million, while net interest margin improved by two basis points to 4.23% [6][27] - Non-performing assets increased by $22 million, resulting in a ratio of 83 basis points compared to 71 basis points in the linked quarter [10][21] Business Line Data and Key Metrics Changes - Loan growth was annualized at 6%, amounting to $174 million, net of $22 million in guaranteed loans sold during the quarter [8][16] - Deposit growth was exceptional, with an increase of $240 million in the quarter, leading to a total deposit growth of $822 million year-over-year [9][19] - Specialty deposits grew by $189 million in the quarter and $681 million year-over-year, reflecting a 22% increase [20] Market Data and Key Metrics Changes - Growth was observed in the Southwest markets, particularly in Dallas and Las Vegas, contributing to high-quality loan growth [8][14] - The company experienced solid customer deposit growth across all regions year-over-year, with non-interest-bearing accounts representing over 32% of total deposits [19] Company Strategy and Development Direction - The company is focused on integrating new associates from recent branch acquisitions and enhancing its presence in strong markets [12] - The strategy emphasizes organic growth and maintaining a balanced deposit base while exploring potential M&A opportunities that align with its growth objectives [59][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding client confidence due to recent economic developments, including interest rate cuts and clarity in trade policies [12][13] - The company anticipates continued loan production and onboarding of new clients, with expectations for a strong finish to 2025 [13][34] Other Important Information - The company increased its quarterly dividend by $0.01 to $0.32 per share for Q4 2025, reflecting confidence in its financial performance [10][34] - The provision for credit losses increased to $8.4 million, primarily due to net charge-offs and an increase in non-performing loans [31] Q&A Session Summary Question: Can you provide clarity on the resolution timeline for the Southern California credits and the life insurance premium finance loan? - Management indicated that the resolution for the Southern California loans may take longer than anticipated due to a secondary bankruptcy filing, while the life insurance loan is expected to be resolved through litigation, with full principal coverage assured [40][41] Question: What is the company's exposure to non-depository financial institutions (NDFIs)? - The company maintains a portfolio of approximately $260 to $270 million in balances across various private lending relationships, focusing on first mortgage secured loans [42][43] Question: What is the expense outlook for the fourth quarter and into 2026? - The company expects total expenses to increase by approximately 3.5% year-over-year, with additional costs related to the branch acquisition factored in [49][50] Question: How does the company view fee income growth moving forward? - Management anticipates fee income growth to be mid-single-digit, with expectations for a rebound in the fourth quarter, although it may not reach the highs of previous quarters [50][73] Question: What are the company's priorities regarding capital deployment? - The primary focus is on organic growth, with M&A opportunities considered if they align with strategic goals; share buybacks are also on the table if suitable opportunities arise [59][76]