News Release
HOPE BANCORP REPORTS 2019 FIRST QUARTER FINANCIAL RESULTS
LOS ANGELES - April 16, 2019 - Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for the three months ended March 31, 2019. Net income for the 2019 first quarter totaled $42.8 million, or $0.34 per diluted common share. This compares with net income for the preceding 2018 fourth quarter of $44.4 million, or $0.35 per diluted common share and $51.2 million, or $0.38 per diluted common share, for the 2018 first quarter.
“First quarter results underscore our 2019 strategic priorities focused on driving profitable growth and protecting margins,” said Kevin S. Kim, President and Chief Executive Officer. “New loan production of $442 million reflects in part our more selective stance in the types of loans and rates that we are bringing on to the balance sheet. As a result, our average rate on new loan originations increased 30 basis points over the preceding fourth quarter, up from an increase of 25 basis points in the preceding quarter, and contributed to a 10 basis point increase in our average loan yield. This helped to mitigate the impact of the highly competitive and higher rate deposit environment, and our net interest margin compression moderated to 2 basis points for the quarter. Our commitment to managing our expense structure is also evident as we were able to maintain our noninterest expense to average assets ratio in line with the fourth quarter despite the normalized bonus accrual and seasonally higher first quarter payroll tax expenses. Overall, we remain confident that our strategic initiatives will deliver greater value to our stakeholders as we progress through the year and beyond,” said Kim.
Q1 2019 Highlights
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| • | 2019 first quarter net income totaled $42.8 million, or $0.34 per diluted common share. |
| |
| • | Net interest margin stabilized, declining 2 basis points to 3.39% and reflecting an improvement from 6 basis points of compression in the preceding quarter. |
| |
| • | The average rate on loans receivable increased 10 basis points, reflecting an improvement over the 5 basis point increase in the fourth quarter of 2018. |
| |
| • | The increase in the cost of interest bearing deposits moderated, up 18 basis points in the first quarter, versus 21 basis points in the preceding quarter. |
| |
| • | An increase in nonaccrual and criticized loans was driven by downgrades of four credit relationships. The Company expects any potential loss exposure to be relatively small, given that the loans are well collateralized with properties in prime locations, secured by strong guarantors, or have strong parent company support . |
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| • | Credit losses remained minimal with net charge offs of $462,000, versus $872,000 in the preceding quarter. |
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| • | Noninterest expense to average assets was well contained at 1.85%, the same as in the 2018 fourth quarter. |
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| • | Net loan-to-deposits (including HFS loans) as of March 31, 2019 improved to 97.6% from 99.0% as of December 31, 2018. |
Financial Highlights
|
| | | | | | | | | | | |
| (dollars in thousands, except per share data) (unaudited) | At or for the Three Months Ended |
| | 3/31/2019 | | 12/31/2018 | | 3/31/2018 |
| Net income | $ | 42,758 |
| | $ | 44,449 |
| | $ | 51,232 |
|
| Diluted earnings per share | $ | 0.34 |
| | $ | 0.35 |
| | $ | 0.38 |
|
| Net interest income before provision for loan losses | $ | 119,608 |
| | $ | 121,893 |
| | $ | 120,068 |
|
| Net interest margin | | 3.39 | % | | | 3.41 | % | | | 3.66 | % |
| Noninterest income | $ | 11,422 |
| | $ | 11,614 |
| | $ | 19,850 |
|
| Noninterest expense | $ | 70,833 |
| | $ | 70,189 |
| | $ | 68,453 |
|
| Net loans receivable | $ | 11,959,787 |
| | $ | 12,005,558 |
| | $ | 11,206,022 |
|
| Deposits | $ | 12,249,196 |
| | $ | 12,155,656 |
| | $ | 11,510,569 |
|
Nonaccrual loans (1) (2) | $ | 86,637 |
| | $ | 53,286 |
| | $ | 68,152 |
|
| ALLL to loans receivable | | 0.78 | % | | | 0.77 | % | | | 0.77 | % |
ALLL to nonaccrual loans (1) (2) | | 108.75 | % | | | 173.70 | % | | | 126.86 | % |
ALLL to nonperforming assets (1) (2) | | 68.03 | % | | | 81.92 | % | | | 62.70 | % |
| Provision for loan losses | $ | 3,000 |
| | $ | 2,800 |
| | $ | 2,500 |
|
| Net charge offs | $ | 462 |
| | $ | 872 |
| | $ | 580 |
|
| Return on average assets (“ROA”) | | 1.12 | % | | | 1.17 | % | | | 1.44 | % |
| Return on average equity (“ROE”) | | 8.91 | % | | | 9.42 | % | | | 10.61 | % |
| Noninterest expense / average assets | | 1.85 | % | | | 1.85 | % | | | 1.93 | % |
| Efficiency ratio | | 54.06 | % | | | 52.57 | % | | | 48.92 | % |
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation
(2) Excludes purchased credit-impaired loans
Operating Results for the 2019 First Quarter
Net Interest Income. Net interest income before provision for loan losses for the 2019 first quarter totaled $119.6 million, compared with $121.9 million in the 2018 fourth quarter and $120.1 million in the year-ago first quarter.
The net interest margin (net interest income divided by average interest earning assets) for the 2019 first quarter decreased 2 basis points to 3.39% from 3.41% in the preceding 2018 fourth quarter. This reflects the impact of higher deposit costs and larger balances of time deposits, partially offset by higher trending loan yields, higher accretion income and lower interest expense related to FHLB advances. Acquisition accounting adjustments, as detailed on page 3 of the financial tables, totaled $8.4 million for the 2019 first quarter and included $1.0 million of additional accretion income as a result of a payoff, compared with $6.6 million in the preceding fourth quarter.
The weighted average yield on loans for the 2019 first quarter was 5.31%, up 10 basis points from 5.21% in the preceding fourth quarter and up 27 basis points over 5.04% in the 2018 first quarter. The increases in the weighted average yield on loans largely reflects the benefits to the variable rate portion of the Company’s loan portfolio resulting from the increases in the fed funds rate in March, June, September and December 2018 of 25 basis points each.
The weighted average cost of deposits for the 2019 first quarter increased 17 basis points to 1.57% from 1.40% in the 2018 fourth quarter and was up 66 basis points from 0.91% in the year-ago first quarter. The increase in the weighted average cost of deposits reflects the highly competitive deposit market, as well as an increase in the higher-rate time deposit balances in the rising interest rate environment.
Noninterest Income. Noninterest income for the 2019 first quarter totaled $11.4 million, compared with $11.6 million in the 2018 fourth quarter and $19.9 million in the 2018 first quarter. Noninterest income for the year-ago first quarter included $3.5 million of income recorded on certain equity investments held by the Company. The other variances in noninterest income largely reflect the net gains on sales of SBA and mortgage loans. As previously announced, the Company discontinued its practice of regularly selling SBA loans to the secondary market during the 2018 fourth quarter. Net gains on sales of SBA loans amounted to $0 for the 2019 first quarter, $447,000 for the 2018 fourth quarter, and $3.5 million for the year-ago first quarter. Net gains on sales of other loans, largely residential mortgage loans, amounted to $741,000 for the 2019 first quarter, $381,000 for the 2018 fourth quarter, and $1.2 million for the year-ago first quarter.
Noninterest Expense. Noninterest expense for the 2019 first quarter totaled $70.8 million, compared with $70.2 million in the preceding fourth quarter and $68.5 million in the 2018 first quarter. Noninterest expense as a percentage of average assets amounted to 1.85%, 1.85% and 1.93% for the 2019 first quarter, 2018 fourth quarter and 2018 first quarter, respectively.
Salaries and employee benefits expense totaled $40.4 million for the 2019 first quarter, compared with $36.6 million for the 2018 fourth quarter, reflecting normalized bonus accruals and the seasonally higher first quarter payroll tax expense. In the year-ago first quarter, salaries and employee benefits expense totaled $39.4 million.
Income Tax Provision. The effective tax rate for the 2019 first quarter was 25.2%, compared with 26.6% in the preceding 2018 fourth quarter and 25.7% in the 2018 first quarter.
Balance Sheet Summary
Loans receivable at March 31, 2019 totaled $12.05 billion, down slightly from $12.10 billion at December 31, 2018, but up 7% from $11.29 million at March 31, 2018.
New loan originations funded during the 2019 first quarter totaled $442.0 million and included SBA loan production of $48.0 million and residential mortgage loan originations of $64.3 million. This compares with 2018 fourth quarter originations of $667.3 million, including SBA loan production of $81.5 million and residential mortgage loan originations of $162.3 million. In the year-ago first quarter, new loan originations funded totaled $764.3 million, including SBA loan production of $78.2 million and residential mortgage loan originations of $179.2 million.
SBA 7(a) loan originations totaled $33.0 million for the 2019 first quarter, compared with $44.7 million for the fourth quarter of 2018 and $73.9 million for the year-ago first quarter. In accordance with the Company’s decision to retain SBA 7(a) loans in its portfolio, there were no sales to the secondary market during the 2019 first quarter, versus sales of $10.2 million during the 2018 fourth quarter and $48.6 million during the year-ago first quarter.
Sales of residential mortgage loans to the secondary market totaled $69.8 million in the 2019 first quarter and included $53.3 million of sales from the Company’s existing portfolio. This compares with sales of $11.8 million in the 2018 fourth quarter and $45.9 million in the 2018 first quarter.
Aggregate loan pay offs and pay downs in the 2019 first quarter totaled $364.0 million, compared with $431.6 million for the 2018 fourth quarter and $411.6 million in the year-ago first quarter.
Total deposits at March 31, 2019 amounted to $12.25 billion, up 1% from $12.16 billion at December 31, 2018 and up 6% from $11.51 billion at March 31, 2018.
With the adoption of the new lease accounting standard ASC 842 effective January 1, 2019, the Company now recognizes its lease liabilities and right-of-use lease assets on its balance sheet. The total balance of operating right-of-use assets included in other assets totaled $62.4 million and total operating lease liabilities included in other liabilities totaled $62.8 million at March 31, 2019. Prior to January 1, 2019, lease assets and liabilities were not recorded on the Company’s balance sheet.
Credit Quality
The provision for loan and lease losses for the 2019 first quarter was $3.0 million, compared with $2.8 million for the immediately preceding 2018 fourth quarter and $2.5 million for the year-ago first quarter.
The Company defines nonperforming loans to include delinquent loans on nonaccrual status, delinquent loans past due 90 days or more on accrual status (excluding purchased credit-impaired loans) and accruing restructured loans. Nonaccrual loans totaled $86.6 million at March 31, 2019, compared with $53.3 million at December 31, 2018 and $68.2 million at March 31, 2018 and represented 0.72%, 0.44% and 0.60% of loans receivable, respectively. Accruing nonperforming loans totaled $387,000 at March 31, 2019, compared with $1.5 million at December 31, 2018 and $1.9 million at March 31, 2018. Accruing restructured loans at March 31, 2019 totaled $45.2 million, compared with $50.4 million at December 31, 2018 and $59.6 million at March 31, 2018. Total nonperforming loans amounted to $132.2 million, or 1.10% of loans receivable, at March 31, 2019, compared with $105.2 million, or 0.87% of loans receivable, at December 31, 2018 and $129.6 million, or 1.15% of loans receivable, at March 31, 2018.
Other real estate owned declined to $6.3 million at March 31, 2019 from $7.8 million at December 31, 2018 and $8.3 million at March 31, 2018.
Following are the components of criticized loan balances as of March 31, 2019, December 31, 2018 and March 31, 2018:
|
| | | | | | | | |
| (dollars in thousands) (unaudited) | 3/31/2019 | | 12/31/2018 | | 3/31/2018 |
Special Mention (1) | $ | 205,373 | | $ | 163,089 | | $ | 196,082 |
Classified (1) | | 353,202 | | | 318,327 | | | 344,648 |
| Criticized | $ | 558,575 | | $ | 481,416 | | $ | 540,730 |
| |
(1) | Balances include purchased loans which were marked to fair value on the date of acquisition. |
The increases in nonaccrual loans and total criticized loans in the 2019 first quarter were primarily driven by four unrelated credit relationships. The Company expects any potential loss exposure to be relatively small given that the loans are well collateralized with properties in prime locations or secured by strong guarantors.
During the 2019 first quarter, the Company recorded net charge offs of $462,000, or 0.02% of average loans receivable on an annualized basis. This compares with net charge offs of $872,000, or 0.03% of average loans receivable on an annualized basis, for the 2018 fourth quarter. In the 2018 first quarter, the Company recorded net charge offs of $580,000, or 0.02% of average loans receivable on an annualized basis.
The ALLL at March 31, 2019 was $94.2 million, or 0.78% of loans receivable (excluding loans held for sale), compared with $92.6 million, or 0.77% of loans receivable (excluding loans held for sale), at December 31, 2018 and $86.5 million, or 0.77% of loans receivable (excluding loans held for sale), at March 31, 2018. The coverage ratio of the ALLL to nonperforming loans (excluding purchased credit-impaired loans) was 71.25% at March 31, 2019, 87.96% at December 31, 2018 and 66.69% at March 31, 2018.
Impaired loans (defined as loans for which it is probable that not all principal and interest payments due will be collected in accordance with the contractual terms) totaled $132.1 million at March 31, 2019, compared with $104.0 million at December 31, 2018 and $128.1 million at March 31, 2018.
Capital
At March 31, 2019, the Company and the Bank continued to exceed all regulatory capital requirements to be classified as a “well-capitalized” financial institution, as summarized in the following table:
|
| | | | | | | |
| (unaudited) | 3/31/2019 | | 12/31/2018 | | 3/31/2018 | | Minimum Guideline for “Well-Capitalized” Bank |
| Common Equity Tier 1 Capital | 11.60% | | 11.44% | | 12.35% | | 6.50% |
| Tier 1 Leverage Ratio | 10.66% | | 10.55% | | 11.61% | | 5.00% |
| Tier 1 Risk-based Ratio | 12.36% | | 12.21% | | 13.15% | | 8.00% |
| Total Risk-based Ratio | 13.10% | | 12.94% | | 13.86% | | 10.00% |
Tangible common equity per share and as a percentage of tangible assets are summarized in the following table:
|
| | | | | |
| (unaudited) | 3/31/2019 | | 12/31/2018 | | 3/31/2018 |
Tangible common equity per share (1) | $11.59 | | $11.25 | | $10.81 |
Tangible common equity to tangible assets (2) | 9.84% | | 9.61% | | 10.44% |
| |
(1) | Tangible common equity represents common equity less goodwill and net other intangible assets. Tangible common equity per share represents tangible common equity divided by the number of shares issued and outstanding. Both tangible common equity and tangible common equity per share are non-GAAP financial measures. A reconciliation of the Company’s total stockholders’ equity to tangible common equity is provided in the accompanying financial information on Table Page 6. |
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(2) | Tangible assets represent total assets less goodwill and net other intangible assets. Tangible common equity to tangible assets is the ratio of tangible common equity over tangible assets. Tangible common equity to tangible assets is a non-GAAP financial measure. A reconciliation of the Company’s total assets to tangible assets is provided in the accompanying financial information on Table Page 6. |
Management reviews tangible common equity to tangible assets ratio in evaluating the Company’s and the Bank’s capital levels and has included these figures and tangible common equity per share figures in response to market participant interest in tangible common equity as a measure of capital. A reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information.
Investor Conference Call
The Company previously announced that it will host an investor conference call on Wednesday, April 17, 2019 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2019. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international), and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available in the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through April 24, 2019, replay access code 10130148.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. is the holding company of Bank of Hope, the first and only super regional Korean-American bank in the United States with $15.4 billion in total assets as of March 31, 2019. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 63 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Georgia and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.
Forward-Looking Statements
Some statements in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market and statements regarding our business strategies, objectives and vision. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; and regulatory risks associated with current and future regulations. For additional information concerning these and other risk factors, see the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
Contacts:
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Alex Ko EVP & Chief Financial Officer 213-427-6560 alex.ko@bankofhope.com
| Angie Yang SVP, Director of Investor Relations & Corporate Communications 213-251-2219 angie.yang@bankofhope.com |
# # #
(tables follow)
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share data)
|
| | | | | | | | | | | | | | | | | |
| Assets: | 3/31/2019 | | 12/31/2018 | | % change | | 3/31/2018 | | % change |
| Cash and due from banks | $ | 612,884 |
| | $ | 459,606 |
| | 33 | % | | $ | 612,353 |
| | — | % |
| Securities available for sale, at fair value | 1,818,343 |
| | 1,846,265 |
| | (2 | )% | | 1,699,315 |
| | 7 | % |
| Federal Home Loan Bank (“FHLB”) stock and other investments | 102,594 |
| | 104,705 |
| | (2 | )% | | 107,906 |
| | (5 | )% |
| Loans held for sale, at the lower of cost or fair value | 921 |
| | 25,128 |
| | (96 | )% | | 33,689 |
| | (97 | )% |
| Loans receivable | 12,054,004 |
| | 12,098,115 |
| | — | % | | 11,292,483 |
| | 7 | % |
| Allowance for loan losses | (94,217 | ) | | (92,557 | ) | | (2 | )% | | (86,461 | ) | | (9 | )% |
| Net loans receivable | 11,959,787 |
| | 12,005,558 |
| | — | % | | 11,206,022 |
| | 7 | % |
| Accrued interest receivable | 34,831 |
| | 32,225 |
| | 8 | % | | 29,154 |
| | 19 | % |
| Premises and equipment, net | 53,218 |
| | 53,794 |
| | (1 | )% | | 56,564 |
| | (6 | )% |
| Bank owned life insurance | 75,586 |
| | 75,219 |
| | — | % | | 75,302 |
| | — | % |
| Goodwill | 464,450 |
| | 464,450 |
| | — | % | | 464,450 |
| | — | % |
| Servicing assets | 21,407 |
| | 23,132 |
| | (7 | )% | | 24,866 |
| | (14 | )% |
| Other intangible assets, net | 13,504 |
| | 14,061 |
| | (4 | )% | | 15,907 |
| | (15 | )% |
| Other assets | 241,144 |
| | 201,809 |
| | 19 | % | | 181,598 |
| | 33 | % |
| Total assets | $ | 15,398,669 |
| | $ | 15,305,952 |
| | 1 | % | | $ | 14,507,126 |
| | 6 | % |
| | | | | | | | | | |
| Liabilities: | | | | | | | | | |
| Deposits | $ | 12,249,196 |
| | $ | 12,155,656 |
| | 1 | % | | $ | 11,510,569 |
| | 6 | % |
| FHLB advances | 720,000 |
| | 821,280 |
| | (12 | )% | | 862,346 |
| | (17 | )% |
| Convertible notes, net | 195,754 |
| | 194,543 |
| | 1 | % | | — |
| | 100 | % |
| Subordinated debentures | 102,201 |
| | 101,929 |
| | — | % | | 101,117 |
| | 1 | % |
| Accrued interest payable | 37,511 |
| | 31,374 |
| | 20 | % | | 19,614 |
| | 91 | % |
| Other liabilities | 147,796 |
| | 97,959 |
| | 51 | % | | 68,147 |
| | 117 | % |
| Total liabilities | $ | 13,452,458 |
| | $ | 13,402,741 |
| | — | % | | $ | 12,561,793 |
| | 7 | % |
| | | | | | | | | | |
| Stockholders’ Equity: | | | | | | | | | |
| Common stock, $0.001 par value | $ | 136 |
| | $ | 136 |
| | — | % | | $ | 136 |
| | — | % |
| Capital surplus | 1,424,029 |
| | 1,423,405 |
| | — | % | | 1,405,806 |
| | 1 | % |
| Retained earnings | 687,404 |
| | 662,375 |
| | 4 | % | | 578,031 |
| | 19 | % |
| Treasury stock, at cost | (150,000 | ) | | (150,000 | ) | | — | % | | — |
| | 100 | % |
| Accumulated other comprehensive loss, net | (15,358 | ) | | (32,705 | ) | | 53 | % | | (38,640 | ) | | 60 | % |
| Total stockholders’ equity | 1,946,211 |
| | 1,903,211 |
| | 2 | % | | 1,945,333 |
| | — | % |
| Total liabilities and stockholders’ equity | $ | 15,398,669 |
| | $ | 15,305,952 |
| | 1 | % | | $ | 14,507,126 |
| | 6 | % |
| | | | | | | | | | |
| Common stock shares - authorized | 150,000,000 |
| | 150,000,000 |
| | | | 150,000,000 |
| | |
| Common stock shares - outstanding | 126,635,584 |
| | 126,639,912 |
| | | | 135,516,119 |
| | |
| Treasury stock shares | 9,002,453 |
| | 9,002,453 |
| | | | — |
| | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
|
| | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | 3/31/2019 | | 12/31/2018 | | % change | | 3/31/2018 | | % change |
| Interest income: | | | | | | | | | |
| Interest and fees on loans | $ | 158,136 |
| | $ | 156,606 |
| | 1 | % | | $ | 137,943 |
| | 15 | % |
| Interest on securities | 12,319 |
| | 12,385 |
| | (1 | )% | | 10,101 |
| | 22 | % |
| Interest on federal funds sold and other investments | 2,675 |
| | 3,035 |
| | (12 | )% | | 2,366 |
| | 13 | % |
| Total interest income | 173,130 |
| | 172,026 |
| | 1 | % | | 150,410 |
| | 15 | % |
| | | | | | | | | | |
| Interest expense: | | | | | | | | | |
| Interest on deposits | 46,847 |
| | 42,477 |
| | 10 | % | | 24,849 |
| | 89 | % |
| Interest on other borrowings and convertible notes | 6,675 |
| | 7,656 |
| | (13 | )% | | 5,493 |
| | 22 | % |
| Total interest expense | 53,522 |
| | 50,133 |
| | 7 | % | | 30,342 |
| | 76 | % |
| | | | | | | | | | |
| Net interest income before provision for loan losses | 119,608 |
| | 121,893 |
| | (2 | )% | | 120,068 |
| | — | % |
| Provision for loan losses | 3,000 |
| | 2,800 |
| | 7 | % | | 2,500 |
| | 20 | % |
| Net interest income after provision for loan losses | 116,608 |
| | 119,093 |
| | (2 | )% | | 117,568 |
| | (1 | )% |
| | | | | | | | | | |
| Noninterest income: | | | | | | | | | |
| Service fees on deposit accounts | 4,317 |
| | 4,568 |
| | (5 | )% | | 4,801 |
| | (10 | )% |
| Net gains on sales of SBA loans | — |
| | 447 |
| | (100 | )% | | 3,450 |
| | (100 | )% |
| Net gains on sales of other loans | 741 |
| | 381 |
| | 94 | % | | 1,196 |
| | (38 | )% |
| Other income and fees | 6,364 |
| | 6,218 |
| | 2 | % | | 10,403 |
| | (39 | )% |
| Total noninterest income | 11,422 |
| | 11,614 |
| | (2 | )% | | 19,850 |
| | (42 | )% |
| | | | | | | | | | |
| Noninterest expense: | | | | | | | | | |
| Salaries and employee benefits | 40,429 |
| | 36,594 |
| | 10 | % | | 39,385 |
| | 3 | % |
| Occupancy | 7,677 |
| | 7,877 |
| | (3 | )% | | 7,239 |
| | 6 | % |
| Furniture and equipment | 3,446 |
| | 3,448 |
| | — | % | | 3,721 |
| | (7 | )% |
| Advertising and marketing | 2,062 |
| | 2,392 |
| | (14 | )% | | 2,299 |
| | (10 | )% |
| Data processing and communications | 2,956 |
| | 3,650 |
| | (19 | )% | | 3,495 |
| | (15 | )% |
| Professional fees | 5,380 |
| | 4,756 |
| | 13 | % | | 3,106 |
| | 73 | % |
| FDIC assessment | 1,551 |
| | 1,406 |
| | 10 | % | | 1,767 |
| | (12 | )% |
| Credit related expenses | 678 |
| | 507 |
| | 34 | % | | 772 |
| | (12 | )% |
| Other real estate owned (“OREO”) expense, net | (152 | ) | | 302 |
| | N/A |
| | (104 | ) | | 46 | % |
| Branch restructuring costs | — |
| | 1,674 |
| | (100 | )% | | — |
| | — | % |
| Other | 6,806 |
| | 7,583 |
| | (10 | )% | | 6,773 |
| | — | % |
| Total noninterest expense | 70,833 |
| | 70,189 |
| | 1 | % | | 68,453 |
| | 3 | % |
| Income before income taxes | 57,197 |
| | 60,518 |
| | (5 | )% | | 68,965 |
| | (17 | )% |
| Income tax provision | 14,439 |
| | 16,069 |
| | (10 | )% | | 17,733 |
| | (19 | )% |
| Net income | $ | 42,758 |
| | $ | 44,449 |
| | (4 | )% | | $ | 51,232 |
| | (17 | )% |
| | | | | | | | | | |
| Earnings Per Common Share: | | | | | | | | | |
| Basic | $ | 0.34 |
| | $ | 0.35 |
| |
| | $ | 0.38 |
| | |
| Diluted | $ | 0.34 |
| | $ | 0.35 |
| |
| | $ | 0.38 |
| | |
| | | | | | | | | | |
| Average Shares Outstanding: | | | | | | | | | |
| Basic | 126,640,464 |
| | 128,115,170 |
| | | | 135,518,705 |
| | |
| Diluted | 126,819,672 |
| | 128,261,998 |
| | | | 135,815,262 |
| | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
|
| | | | | | | | | | | |
| | For the Three Months Ended (Annualized) |
| Profitability measures: | 3/31/2019 | | 12/31/2018 | | 3/31/2018 |
| ROA | 1.12 | % | | 1.17 | % | | 1.44 | % |
| ROE | 8.91 | % | | 9.42 | % | | 10.61 | % |
Return on average tangible equity 1 | 11.86 | % | | 12.62 | % | | 14.13 | % |
| Net interest margin | 3.39 | % | | 3.41 | % | | 3.66 | % |
| Efficiency ratio | 54.06 | % | | 52.57 | % | | 48.92 | % |
| Noninterest expense / average assets | 1.85 | % | | 1.85 | % | | 1.93 | % |
| | | | | | |
1 Average tangible equity is calculated by subtracting average goodwill and average core deposit intangible assets from average stockholders’ equity. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position. |
| | | | | | |
| | | | | | |
| | Three Months Ended |
| Pre-tax acquisition accounting adjustments and merger-related expenses: | 3/31/2019 | | 12/31/2018 | | 3/31/2018 |
| Accretion on purchased non-impaired loans | $ | 2,166 |
| | $ | 2,360 |
| | $ | 3,197 |
|
| Accretion on purchased credit-impaired loans | 5,833 |
| | 4,867 |
| | 5,772 |
|
| Amortization of premium on low income housing tax credits | (76 | ) | | (84 | ) | | (84 | ) |
| Amortization of premium on acquired FHLB borrowings | 1,280 |
| | 357 |
| | 347 |
|
| Accretion of discount on acquired subordinated debt | (273 | ) | | (272 | ) | | (264 | ) |
| Amortization of premium on acquired time deposits and savings | — |
| | — |
| | 1 |
|
| Amortization of core deposit intangibles | (557 | ) | | (615 | ) | | (615 | ) |
| Total acquisition accounting adjustments | 8,373 |
| | 6,613 |
| | 8,354 |
|
| Merger-related expenses | — |
| | — |
| | 7 |
|
| Total | $ | 8,373 |
| | $ | 6,613 |
| | $ | 8,361 |
|
| | | | | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | 3/31/2019 | | 12/31/2018 | | 3/31/2018 |
| | | | Interest | | Annualized | | | | Interest | | Annualized | | | | Interest | | Annualized |
| | Average | | Income/ | | Average | | Average | | Income/ | | Average | | Average | | Income/ | | Average |
| | Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost | | Balance | | Expense | | Yield/Cost |
| INTEREST EARNING ASSETS: | | | | | | | | | | | | | | | | | |
| Loans, including loans held for sale | $ | 12,088,169 |
| | $ | 158,136 |
| | 5.31 | % | | $ | 11,935,109 |
| | $ | 156,606 |
| | 5.21 | % | | $ | 11,095,864 |
| | $ | 137,943 |
| | 5.04 | % |
| Securities available for sale | 1,827,612 |
| | 12,319 |
| | 2.73 | % | | 1,835,218 |
| | 12,385 |
| | 2.68 | % | | 1,673,122 |
| | 10,101 |
| | 2.45 | % |
| FHLB stock and other investments | 405,660 |
| | 2,675 |
| | 2.68 | % | | 431,901 |
| | 3,035 |
| | 2.79 | % | | 517,572 |
| | 2,366 |
| | 1.85 | % |
| Total interest earning assets | $ | 14,321,441 |
| | $ | 173,130 |
| | 4.90 | % | | $ | 14,202,228 |
| | $ | 172,026 |
| | 4.81 | % | | $ | 13,286,558 |
| | $ | 150,410 |
| | 4.59 | % |
| | | | | | | | | | | | | | | | | | |
| INTEREST BEARING LIABILITIES: | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | |
| Demand, interest bearing | $ | 3,042,524 |
| | $ | 12,987 |
| | 1.73 | % | | $ | 3,127,598 |
| | $ | 12,425 |
| | 1.58 | % | | $ | 3,402,760 |
| | $ | 8,864 |
| | 1.06 | % |
| Savings | 223,531 |
| | 565 |
| | 1.03 | % | | 225,746 |
| | 537 |
| | 0.94 | % | | 236,216 |
| | 424 |
| | 0.73 | % |
| Time deposits | 5,936,842 |
| | 33,295 |
| | 2.27 | % | | 5,626,355 |
| | 29,515 |
| | 2.08 | % | | 4,525,813 |
| | 15,561 |
| | 1.39 | % |
| Total interest bearing deposits | 9,202,897 |
| | 46,847 |
| | 2.06 | % | | 8,979,699 |
| | 42,477 |
| | 1.88 | % | | 8,164,789 |
| | 24,849 |
| | 1.23 | % |
| FHLB advances | 810,857 |
| | 2,614 |
| | 1.31 | % | | 824,995 |
| | 3,674 |
| | 1.77 | % | | 974,071 |
| | 4,069 |
| | 1.69 | % |
| Convertible debt | 194,969 |
| | 2,298 |
| | 4.71 | % | | 193,749 |
| | 2,299 |
| | 4.64 | % | | — |
| | — |
| | — | % |
| Subordinated debentures | 98,126 |
| | 1,763 |
| | 7.19 | % | | 97,856 |
| | 1,683 |
| | 6.73 | % | | 97,049 |
| | 1,424 |
| | 5.87 | % |
| Total interest bearing liabilities | 10,306,849 |
| | $ | 53,522 |
| | 2.11 | % | | 10,096,299 |
| | $ | 50,133 |
| | 1.97 | % | | 9,235,909 |
| | $ | 30,342 |
| | 1.33 | % |
| Noninterest bearing demand deposits | 2,886,746 |
| | | | | | 3,018,672 |
| | | | | | 2,941,577 |
| | | | |
| Total funding liabilities/cost of funds | $ | 13,193,595 |
| | | | 1.65 | % | | $ | 13,114,971 |
| | | | 1.52 | % | | $ | 12,177,486 |
| | | | 1.01 | % |
| Net interest income/net interest spread | | | $ | 119,608 |
| | 2.79 | % | | | | $ | 121,893 |
| | 2.84 | % | | | | $ | 120,068 |
| | 3.26 | % |
| Net interest margin | | | | | 3.39 | % | | | | | | 3.41 | % | | | | | | 3.66 | % |
| | | | | | | | | | | | | | | | | | |
| Cost of deposits: | | | | | | | | | | | | | | | | | |
| Noninterest bearing demand deposits | $ | 2,886,746 |
| | $ | — |
| | — | % | | $ | 3,018,672 |
| | $ | — |
| | — | % | | $ | 2,941,577 |
| | $ | — |
| | — | % |
| Interest bearing deposits | 9,202,897 |
| | 46,847 |
| | 2.06 | % | | 8,979,699 |
| | 42,477 |
| | 1.88 | % | | 8,164,789 |
| | 24,849 |
| | 1.23 | % |
| Total deposits | $ | 12,089,643 |
| | $ | 46,847 |
| | 1.57 | % | | $ | 11,998,371 |
| | $ | 42,477 |
| | 1.40 | % | | $ | 11,106,366 |
| | $ | 24,849 |
| | 0.91 | % |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
|
| | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| AVERAGE BALANCES: | 3/31/2019 | | 12/31/2018 | | % change | | 3/31/2018 | | % change |
| Loans receivable, including loans held for sale | $ | 12,088,169 |
| | $ | 11,935,109 |
| | 1 | % | | $ | 11,095,864 |
| | 9 | % |
| Investments | 2,233,272 |
| | 2,267,119 |
| | (1 | )% | | 2,190,694 |
| | 2 | % |
| Interest earning assets | 14,321,441 |
| | 14,202,228 |
| | 1 | % | | 13,286,558 |
| | 8 | % |
| Total assets | 15,290,338 |
| | 15,152,946 |
| | 1 | % | | 14,214,250 |
| | 8 | % |
| | | | | | | | | | |
| Interest bearing deposits | 9,202,897 |
| | 8,979,699 |
| | 2 | % | | 8,164,789 |
| | 13 | % |
| Interest bearing liabilities | 10,306,849 |
| | 10,096,299 |
| | 2 | % | | 9,235,909 |
| | 12 | % |
| Noninterest bearing demand deposits | 2,886,746 |
| | 3,018,672 |
| | (4 | )% | | 2,941,577 |
| | (2 | )% |
| Stockholders’ equity | 1,920,492 |
| | 1,888,053 |
| | 2 | % | | 1,931,290 |
| | (1 | )% |
| Net interest earning assets | 4,014,592 |
| | 4,105,929 |
| | (2 | )% | | 4,050,649 |
| | (1 | )% |
| | | | | | | | | | |
| LOAN PORTFOLIO COMPOSITION: | 3/31/2019 | | 12/31/2018 | | % change | | 3/31/2018 | | % change |
| Commercial loans | $ | 2,330,697 |
| | $ | 2,324,820 |
| | — | % | | $ | 2,007,686 |
| | 16 | % |
| Real estate loans | 8,715,834 |
| | 8,721,600 |
| | — | % | | 8,529,153 |
| | 2 | % |
| Consumer and other loans | 1,007,067 |
| | 1,051,486 |
| | (4 | )% | | 755,621 |
| | 33 | % |
| Loans outstanding | 12,053,598 |
| | 12,097,906 |
| | — | % | | 11,292,460 |
| | 7 | % |
| Unamortized deferred loan fees - net of costs | 406 |
| | 209 |
| | 94 | % | | 23 |
| | 1,665 | % |
| Loans, net of deferred loan fees and costs | 12,054,004 |
| | 12,098,115 |
| | — | % | | 11,292,483 |
| | 7 | % |
| Allowance for loan losses | (94,217 | ) | | (92,557 | ) | | 2 | % | | (86,461 | ) | | 9 | % |
| Loan receivable, net | $ | 11,959,787 |
| | $ | 12,005,558 |
| | — | % | | $ | 11,206,022 |
| | 7 | % |
| | | | | | | | | | |
| REAL ESTATE LOANS BY PROPERTY TYPE: | 3/31/2019 | | 12/31/2018 | | % change | | 3/31/2018 | | % change |
| Retail buildings | $ | 2,345,411 |
| | $ | 2,379,589 |
| | (1 | )% | | $ | 2,342,086 |
| | — | % |
| Hotels/motels | 1,692,193 |
| | 1,694,696 |
| | — | % | | 1,637,416 |
| | 3 | % |
| Gas stations/car washes | 964,706 |
| | 980,619 |
| | (2 | )% | | 978,454 |
| | (1 | )% |
| Mixed-use facilities | 746,288 |
| | 698,779 |
| | 7 | % | | 651,473 |
| | 15 | % |
| Warehouses | 951,141 |
| | 966,413 |
| | (2 | )% | | 934,389 |
| | 2 | % |
| Multifamily | 460,514 |
| | 453,555 |
| | 2 | % | | 445,930 |
| | 3 | % |
| Other | 1,555,581 |
| | 1,547,949 |
| | — | % | | 1,539,405 |
| | 1 | % |
| Total | $ | 8,715,834 |
| | $ | 8,721,600 |
| | — | % | | $ | 8,529,153 |
| | 2 | % |
| | | | | | | | | | |
| DEPOSIT COMPOSITION | 3/31/2019 | | 12/31/2018 | | % change | | 3/31/2018 | | % change |
| Noninterest bearing demand deposits | $ | 2,948,751 |
| | $ | 3,022,633 |
| | (2 | )% | | $ | 3,048,181 |
| | (3 | )% |
| Money market and other | 3,086,920 |
| | 3,036,653 |
| | 2 | % | | 3,454,660 |
| | (11 | )% |
| Saving deposits | 223,562 |
| | 225,746 |
| | (1 | )% | | 233,014 |
| | (4 | )% |
| Time deposits | 5,989,963 |
| | 5,870,624 |
| | 2 | % | | 4,774,714 |
| | 25 | % |
| Total deposit balances | $ | 12,249,196 |
| | $ | 12,155,656 |
| | 1 | % | | $ | 11,510,569 |
| | 6 | % |
| | | | | | | | | | |
| DEPOSIT COMPOSITION (%) | 3/31/2019 | | 12/31/2018 | | | | 3/31/2018 | | |
| Noninterest bearing demand deposits | 24.1 | % | | 24.9 | % | | | | 26.5 | % | | |
| Money market and other | 25.2 | % | | 25.0 | % | | | | 30.0 | % | | |
| Saving deposits | 1.8 | % | | 1.8 | % | | | | 2.0 | % | | |
| Time deposits | 48.9 | % | | 48.3 | % | | | | 41.5 | % | | |
| Total deposit balances | 100.0 | % | | 100.0 | % | | | | 100.0 | % | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
|
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| CAPITAL RATIOS: | 3/31/2019 | | 12/31/2018 | | 3/31/2018 | | | | |
| Total stockholders’ equity | $ | 1,946,211 |
| | $ | 1,903,211 |
| | $ | 1,945,333 |
| | | | |
| Common Equity Tier 1 ratio | 11.60 | % | | 11.44 | % | | 12.35 | % | | | | |
| Tier 1 risk-based capital ratio | 12.36 | % | | 12.21 | % | | 13.15 | % | | | | |
| Total risk-based capital ratio | 13.10 | % | | 12.94 | % | | 13.86 | % | | | | |
| Tier 1 leverage ratio | 10.66 | % | | 10.55 | % | | 11.61 | % | | | | |
| Total risk weighted assets | $ | 12,813,576 |
| | $ | 12,748,658 |
| | $ | 12,172,708 |
| | | | |
| Book value per common share | $ | 15.37 |
| | $ | 15.03 |
| | $ | 14.35 |
| | | | |
Tangible common equity to tangible assets 1 | 9.84 | % | | 9.61 | % | | 10.44 | % | | | | |
Tangible common equity per share 1 | $ | 11.59 |
| | $ | 11.25 |
| | $ | 10.81 |
| | | | |
| | | | | | | | | | |
1 Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and core deposit intangible assets, net divided by total assets less goodwill and core deposit intangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company’s capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital. | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Reconciliation of GAAP financial measures to non-GAAP financial measures: | | | | |
| | Three Months Ended | | | | |
| | 3/31/2019 | | 12/31/2018 | | 3/31/2018 | | | | |
| TANGIBLE COMMON EQUITY | | | | | | | | | |
| Total stockholders’ equity | $ | 1,946,211 |
| | $ | 1,903,211 |
| | $ | 1,945,333 |
| | | | |
| Less: Goodwill and core deposit intangible assets, net | (477,954 | ) | | (478,511 | ) | | (480,357 | ) | | | | |
| Tangible common equity | $ | 1,468,257 |
| | $ | 1,424,700 |
| | $ | 1,464,976 |
| | | | |
| | | | | | | | | | |
| Total assets | $ | 15,398,669 |
| | $ | 15,305,952 |
| | $ | 14,507,126 |
| | | | |
| Less: Goodwill and core deposit intangible assets, net | (477,954 | ) | | (478,511 | ) | | (480,357 | ) | | | | |
| Tangible assets | $ | 14,920,715 |
| | $ | 14,827,441 |
| | $ | 14,026,769 |
| | | | |
| | | | | | | | | | |
| Common shares outstanding | 126,635,584 |
| | 126,639,912 |
| | 135,516,119 |
| | | | |
| | | | | | | | | | |
| Tangible common equity to tangible assets | 9.84 | % | | 9.61 | % | | 10.44 | % | | | | |
| Tangible common equity per share | $ | 11.59 |
| | $ | 11.25 |
| | $ | 10.81 |
| | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
|
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | Three Months Ended |
| ALLOWANCE FOR LOAN LOSSES CHANGES: | 3/31/2019 | | 12/31/2018 | | 9/30/2018 | | 6/30/2018 | | 3/31/2018 |
| Balance at beginning of period | $ | 92,557 |
| | $ | 90,629 |
| | $ | 89,881 |
| | $ | 86,461 |
| | $ | 84,541 |
|
| Provision for loan losses | 2,122 |
| | 2,800 |
| | 7,300 |
| | 2,300 |
| | 2,500 |
|
| Recoveries | 1,292 |
| | 805 |
| | 315 |
| | 2,383 |
| | 488 |
|
| Charge offs | (1,754 | ) | | (1,677 | ) | | (6,867 | ) | | (1,263 | ) | | (1,068 | ) |
| Balance at end of period | $ | 94,217 |
| | $ | 92,557 |
| | $ | 90,629 |
| | $ | 89,881 |
| | $ | 86,461 |
|
| Net charge offs (recoveries)/average loans receivable (annualized) | 0.02 | % | | 0.03 | % | | 0.22 | % | | (0.04 | )% | | 0.02 | % |
| | | | | | | | | | |
| | | | | | | | | | |
| | Three Months Ended |
| ALLOWANCE FOR LOAN LOSSES COMPOSITION: | 3/31/2019 | | 12/31/2018 | | 9/30/2018 | | 6/30/2018 | | 3/31/2018 |
Legacy loans 1 | $ | 80,953 |
| | $ | 78,259 |
| | $ | 75,364 |
| | $ | 76,048 |
| | $ | 72,065 |
|
Purchased non-impaired loans 2 | 2,948 |
| | 2,135 |
| | 2,411 |
| | 2,467 |
| | 2,581 |
|
Purchased credit-impaired loans 2 | 10,316 |
| | 12,163 |
| | 12,854 |
| | 11,366 |
| | 11,815 |
|
| Total allowance for loan losses | $ | 94,217 |
| | $ | 92,557 |
| | $ | 90,629 |
| | $ | 89,881 |
| | $ | 86,461 |
|
| | | | | | | | | | |
1 Legacy loans include loans originated by the Bank’s predecessor banks, loans originated by Bank of Hope and loans that were acquired that have been refinanced as new loans. |
2 Purchased loans were marked to fair value at acquisition date, and the allowance for loan losses reflects provisions for credit deterioration since the acquisition date. |
| | | | | | | | | | |
| | | | | | | | | | |
| | Three Months Ended |
| NET CHARGED OFF (RECOVERED) LOANS BY TYPE: | 3/31/2019 | | 12/31/2018 | | 9/30/2018 | | 6/30/2018 | | 3/31/2018 |
| Real estate loans | $ | (1,067 | ) | | $ | 123 |
| | $ | 6,004 |
| | $ | (390 | ) | | $ | (37 | ) |
| Commercial loans | 1,250 |
| | 436 |
| | 230 |
| | (949 | ) | | 291 |
|
| Consumer loans | 279 |
| | 313 |
| | 318 |
| | 219 |
| | 326 |
|
| Total net charge offs (recoveries) | $ | 462 |
| | $ | 872 |
| | $ | 6,552 |
| | $ | (1,120 | ) | | $ | 580 |
|
| | | | | | | | | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
|
| | | | | | | | | | | | | | | | | | | |
| NONPERFORMING ASSETS | 3/31/2019 | | 12/31/2018 | | 9/30/2018 | | 6/30/2018 | | 3/31/2018 |
Loans on nonaccrual status 3 | $ | 86,637 |
| | $ | 53,286 |
| | $ | 56,299 |
| | $ | 68,226 |
| | $ | 68,152 |
|
Delinquent loans 90 days or more on accrual status 4 | 387 |
| | 1,529 |
| | 401 |
| | 3,030 |
| | 1,894 |
|
| Accruing troubled debt restructured loans | 45,204 |
| | 50,410 |
| | 52,521 |
| | 49,219 |
| | 59,596 |
|
| Total nonperforming loans | 132,228 |
| | 105,225 |
| | 109,221 |
| | 120,475 |
| | 129,642 |
|
| Other real estate owned | 6,258 |
| | 7,754 |
| | 8,981 |
| | 8,656 |
| | 8,261 |
|
| Total nonperforming assets | $ | 138,486 |
| | $ | 112,979 |
| | $ | 118,202 |
| | $ | 129,131 |
| | $ | 137,903 |
|
| Nonperforming assets/total assets | 0.90 | % | | 0.74 | % | | 0.78 | % | | 0.87 | % | | 0.95 | % |
| Nonperforming assets/loans receivable & OREO | 1.15 | % | | 0.93 | % | | 0.99 | % | | 1.11 | % | | 1.22 | % |
| Nonperforming assets/total capital | 7.12 | % | | 5.94 | % | | 6.21 | % | | 6.78 | % | | 7.09 | % |
| Nonperforming loans/loans receivable | 1.10 | % | | 0.87 | % | | 0.92 | % | | 1.03 | % | | 1.15 | % |
| Nonaccrual loans/loans receivable | 0.72 | % | | 0.44 | % | | 0.47 | % | | 0.58 | % | | 0.60 | % |
| Allowance for loan losses/loans receivable | 0.78 | % | | 0.77 | % | | 0.76 | % | | 0.77 | % | | 0.77 | % |
| Allowance for loan losses/nonaccrual loans | 108.75 | % | | 173.70 | % | | 160.98 | % | | 131.74 | % | | 126.86 | % |
| Allowance for loan losses/nonperforming loans | 71.25 | % | | 87.96 | % | | 82.98 | % | | 74.61 | % | | 66.69 | % |
| Allowance for loan losses/nonperforming assets | 68.03 | % | | 81.92 | % | | 76.67 | % | | 69.60 | % | | 62.70 | % |
| | | | | | | | | | |
3 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $30.5 million, $29.2 million, $23.1 million, $26.0 million, and $21.9 million at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively. |
4 Excludes purchased credit impaired loans that are delinquent 90 or more days totaling $18.4 million, $14.1 million, $16.6 million, $17.8 million, and $17.0 million at March 31, 2019. December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively. |
| | | | | | | | | | |
| BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS: | 3/31/2019 | | 12/31/2018 | | 9/30/2018 | | 6/30/2018 | | 3/31/2018 |
| Retail buildings | $ | 2,965 |
| | $ | 3,085 |
| | $ | 3,112 |
| | $ | 3,138 |
| | $ | 8,034 |
|
| Hotels/motels | — |
| | — |
| | — |
| | — |
| | 1,265 |
|
| Gas stations/car washes | 255 |
| | 267 |
| | — |
| | — |
| | — |
|
| Mixed-use facilities | 3,254 |
| | 5,956 |
| | 5,994 |
| | 6,026 |
| | 2,852 |
|
| Warehouses | 11,315 |
| | 7,188 |
| | 7,219 |
| | 7,462 |
| | 7,615 |
|
Other 5 | 27,415 |
| | 33,914 |
| | 36,196 |
| | 32,593 |
| | 39,830 |
|
| Total | $ | 45,204 |
| | $ | 50,410 |
| | $ | 52,521 |
| | $ | 49,219 |
| | $ | 59,596 |
|
| | | | | | | | | | |
5 Includes commercial business and other loans | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE | 3/31/2019 | | 12/31/2018 | | 9/30/2018 | | 6/30/2018 | | 3/31/2018 |
| Legacy | | | | | | | | | |
| 30 - 59 days | $ | 30,971 |
| | $ | 23,846 |
| | $ | 26,872 |
| | $ | 11,872 |
| | $ | 22,126 |
|
| 60 - 89 days | 1,227 |
| | 218 |
| | 2,773 |
| | 8,542 |
| | 2,102 |
|
| Total | $ | 32,198 |
| | $ | 24,064 |
| | $ | 29,645 |
| | $ | 20,414 |
| | $ | 24,228 |
|
| | | | | | | | | | |
| Acquired | | | | | | | | | |
| 30 - 59 days | $ | 2,717 |
| | $ | 1,094 |
| | $ | 5,240 |
| | $ | 5,911 |
| | $ | 9,158 |
|
| 60 - 89 days | — |
| | 406 |
| | 18 |
| | 124 |
| | 1,011 |
|
| Total | $ | 2,717 |
| | $ | 1,500 |
| | $ | 5,258 |
| | $ | 6,035 |
| | $ | 10,169 |
|
| | | | | | | | | | |
| Total accruing delinquent loans 30-89 days past due | $ | 34,915 |
| | $ | 25,564 |
| | $ | 34,903 |
| | $ | 26,449 |
| | $ | 34,397 |
|
| | | | | | | | | | |
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
|
| | | | | | | | | | | | | | | | | | | |
| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE | 3/31/2019 | | 12/31/2018 | | 9/30/2018 | | 6/30/2018 | | 3/31/2018 |
| Legacy | | | | | | | | | |
| Real estate loans | $ | 12,324 |
| | $ | 2,352 |
| | $ | 13,275 |
| | $ | 10,153 |
| | $ | 12,272 |
|
| Commercial loans | 2,711 |
| | 5,159 |
| | 986 |
| | 7,380 |
| | 1,994 |
|
| Consumer loans | 17,163 |
| | 16,553 |
| | 15,384 |
| | 2,881 |
| | 9,962 |
|
| Total | $ | 32,198 |
| | $ | 24,064 |
| | $ | 29,645 |
| | $ | 20,414 |
| | $ | 24,228 |
|
| | | | | | | | | | |
| Acquired | | | | | | | | | |
| Real estate loans | $ | 1,371 |
| | $ | 905 |
| | $ | 4,703 |
| | $ | 4,849 |
| | $ | 7,537 |
|
| Commercial loans | 374 |
| | 595 |
| | 555 |
| | 338 |
| | 2,280 |
|
| Consumer loans | 972 |
| | — |
| | — |
| | 848 |
| | 352 |
|
| Total | $ | 2,717 |
| | $ | 1,500 |
| | $ | 5,258 |
| | $ | 6,035 |
| | $ | 10,169 |
|
| | | | | | | | | | |
| Total accruing delinquent loans 30-89 days past due | $ | 34,915 |
| | $ | 25,564 |
| | $ | 34,903 |
| | $ | 26,449 |
| | $ | 34,397 |
|
| | | | | | | | | | |
| | | | | | | | | | |
| NONACCRUAL LOANS BY TYPE | 3/31/2019 | | 12/31/2018 | | 9/30/2018 | | 6/30/2018 | | 3/31/2018 |
| Real estate loans | $ | 58,030 |
| | $ | 33,719 |
| | $ | 35,614 |
| | $ | 34,537 |
| | $ | 37,093 |
|
| Commercial loans | 27,042 |
| | 18,128 |
| | 19,119 |
| | 31,250 |
| | 29,446 |
|
| Consumer loans | 1,565 |
| | 1,439 |
| | 1,566 |
| | 2,439 |
| | 1,613 |
|
| Total nonaccrual loans | $ | 86,637 |
| | $ | 53,286 |
| | $ | 56,299 |
| | $ | 68,226 |
| | $ | 68,152 |
|
| | | | | | | | | | |
| CRITICIZED LOANS | 3/31/2019 | | 12/31/2018 | | 9/30/2018 | | 6/30/2018 | | 3/31/2018 |
| Legacy | | | | | | | | | |
| Special mention | $ | 154,671 |
| | $ | 121,622 |
| | $ | 177,563 |
| | $ | 101,435 |
| | $ | 140,588 |
|
| Substandard | 223,511 |
| | 193,494 |
| | 171,767 |
| | 191,787 |
| | 180,631 |
|
| Doubtful | — |
| | — |
| | 429 |
| | 5,852 |
| | 108 |
|
| Loss | 351 |
| | — |
| | 1 |
| | — |
| | — |
|
| Total criticized loans - legacy | $ | 378,533 |
| | $ | 315,116 |
| | $ | 351,920 |
| | $ | 299,074 |
| | $ | 321,327 |
|
| | | | | | | | | | |
| Acquired | | | | | | | | | |
| Special mention | $ | 50,702 |
| | $ | 41,467 |
| | $ | 38,023 |
| | $ | 38,059 |
| | $ | 55,494 |
|
| Substandard | 129,122 |
| | 124,421 |
| | 130,078 |
| | 159,613 |
| | 163,429 |
|
| Doubtful | 218 |
| | 377 |
| | 444 |
| | 419 |
| | 477 |
|
| Loss | — |
| | 35 |
| | — |
| | — |
| | 3 |
|
| Total criticized loans - acquired | $ | 180,042 |
| | $ | 166,300 |
| | $ | 168,545 |
| | $ | 198,091 |
| | $ | 219,403 |
|
| | | | | | | | | | |
| Total criticized loans | $ | 558,575 |
| | $ | 481,416 |
| | $ | 520,465 |
| | $ | 497,165 |
| | $ | 540,730 |
|
