Q1 2018 Highlights:
- Q1 net income totals a record $51.2 million, or $0.38 per diluted common share
- New loan originations funded of $764 million, up 15% over preceding Q4
- New loan commitments during the quarter reaches a record $1.12 billion
- Total loans receivable of $11.29 billion reflects a 2% increase linked quarter
- Total deposits of $11.51 billion reflects a 6% increase over Q4 2017
- Total assets increase to $14.51 billion, up 2% over Q4 2017
LOS ANGELES, April 17, 2018 (GLOBE NEWSWIRE) -- Hope Bancorp, Inc. (the “Company”) (NASDAQ:HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its three months ended March 31, 2018. Net income for the 2018 first quarter increased significantly to a record $51.2 million, or $0.38 per diluted common share, up 185% from $18.0 million, or $0.13 per diluted common share, for the 2017 fourth quarter(1) and up 41% from $36.2 million, or $0.27 per diluted common share, for the year-ago first quarter.
The significant improvements in net income reflect, among other things, the enactment of the Tax Cuts and Jobs Act (the “Tax Act”) on December 22, 2017, which lowered the corporate federal tax rate from 35% to 21% beginning in 2018.
“We are off to a strong start in 2018 with a first quarter performance that demonstrates the benefits of the recent tax reform, as well as many other positive operating trends,” said Kevin S. Kim, President and Chief Executive Officer. “Most notably, we had our strongest quarter ever in terms of loan production with a record $1.1 billion in new loan commitments and new loan disbursements of $764 million. We are also very pleased with the improved production mix of 45% commercial real estate, 31% C&I and 24% consumer, with the majority of our production this quarter coming from our non-CRE categories. We believe these results reflect the benefits of our investments over the last year in our C&I and residential mortgage platform and talent.
“Total deposits increased $664 million, or 6%, from year-end 2017, reflecting solid growth in all major deposit categories and a proactive effort to gather deposits ahead of the additional rate hikes expected this year. While it is expected that our funding costs will increase given the rising rate environment and competitive deposit market, we believe we are well positioned to mitigate the compression on our margin with higher loan volumes. All-in-all, our profitability metrics improved considerably with an ROA of 1.44% and an ROE of 10.61% for the 2018 first quarter, and we look forward to building on the momentum of our strong first quarter performance,” said Kim.
__________________
(1) The Company's fourth quarter 2017 financial results included a one-time, non-cash, incremental income tax expense in the Company’s consolidated statements of income of $25.4 million resulting from the revaluation of its deferred tax assets and liabilities (the “DTA”) and low income housing tax credit (the “LIHTC”) investments due to the enactment of the Tax Act. Excluding the one-time, non-cash tax expense, net income for the 2017 fourth quarter would have been $43.4 million, or $0.32 per diluted common share. Net income and diluted earnings per share excluding tax reform adjustments are non-GAAP financial measures. A reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information.
Financial Highlights
| (dollars in thousands, except per share data) (unaudited) | At or for the Three Months Ended | ||||||||||
| 3/31/2018 | 12/31/2017 | 3/31/2017 | |||||||||
| Net income | $ | 51,232 | $ | 17,984 | $ | 36,210 | |||||
| Diluted earnings per share | $ | 0.38 | $ | 0.13 | $ | 0.27 | |||||
| Tax reform adjustments: | |||||||||||
| Deferred tax asset | $ | — | $ | 23,835 | $ | — | |||||
| Investments in affordable housing partnerships | $ | — | $ | 1,588 | $ | — | |||||
| Net income, excluding tax reform adjustments (1) | $ | 51,232 | $ | 43,407 | $ | 36,210 | |||||
| Diluted earnings per share, excluding tax reform adjustments (1) | $ | 0.38 | $ | 0.32 | $ | 0.27 | |||||
| Net interest income before provision for loan losses | $ | 120,068 | $ | 126,392 | $ | 114,905 | |||||
| Net interest margin | 3.66 | % | 3.84 | % | 3.77 | % | |||||
| Noninterest income | $ | 19,850 | $ | 16,451 | $ | 17,603 | |||||
| Noninterest expense | $ | 68,453 | $ | 73,028 | $ | 67,699 | |||||
| Net loans receivable | $ | 11,206,022 | $ | 11,018,034 | $ | 10,471,008 | |||||
| Deposits | $ | 11,510,569 | $ | 10,846,609 | $ | 10,703,777 | |||||
| Nonaccrual loans (2) | $ | 68,152 | $ | 46,775 | $ | 37,009 | |||||
| ALLL to loans receivable | 0.77 | % | 0.76 | % | 0.75 | % | |||||
| ALLL to nonaccrual loans (2) | 126.86 | % | 180.74 | % | 212.54 | % | |||||
| ALLL to nonperforming assets (2) (3) | 61.71 | % | 67.51 | % | 74.65 | % | |||||
| Provision for loan losses | $ | 2,500 | $ | 3,600 | $ | 5,600 | |||||
| Net charge offs | $ | 580 | $ | 2,692 | $ | 6,284 | |||||
| Return on assets (“ROA”) | 1.44 | % | 0.51 | % | 1.09 | % | |||||
| Return on equity (“ROE”) | 10.61 | % | 3.70 | % | 7.75 | % | |||||
| Efficiency ratio | 48.92 | % | 51.12 | % | 51.09 | % | |||||
(1) Net income and diluted earnings per share excluding tax reform adjustments are non-GAAP financial measures. A reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information.
(2) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $21.9 million, $22.1 million and $15.2 million at March 31, 2018, December 31, 2017 and March 31, 2017, respectively.
(3) Nonperforming assets exclude purchased credit-impaired loans totaling $17.0 million, $18.1 million and $17.3 million at March 31, 2018, December 31, 2017 and March 31, 2017, respectively.
Operating Results for the 2018 First Quarter
The comparability of the Company’s operating results with past performance is impacted by acquisition accounting adjustments and merger-related expenses associated with past and current acquisitions. The Company provides the following supplemental information to facilitate a better understanding of financial performance. Net interest income and operating income for the three months ended March 31, 2018, December 31, 2017 and March 31, 2017 included the following pre-tax acquisition accounting adjustments and merger-related expenses associated with past and current acquisitions:
| (dollars in thousands) (unaudited) | Three Months Ended | ||||||||||
| 3/31/2018 | 12/31/2017 | 3/31/2017 | |||||||||
| Accretion on purchased non-impaired loans | $ | 3,197 | $ | 7,629 | $ | 2,676 | |||||
| Accretion on purchased credit-impaired loans | 5,772 | 5,167 | 5,348 | ||||||||
| Amortization of premium on low income housing tax credits | (84 | ) | (85 | ) | (84 | ) | |||||
| Amortization of premium on acquired FHLB borrowings | 347 | 353 | 441 | ||||||||
| Accretion of discount on acquired subordinated debt | (264 | ) | (263 | ) | (259 | ) | |||||
| Amortization of premium on acquired time deposits and savings | 1 | 3 | 3,476 | ||||||||
| Amortization of core deposit intangibles | (615 | ) | (675 | ) | (676 | ) | |||||
| Total acquisition accounting adjustments | $ | 8,354 | $ | 12,129 | $ | 10,922 | |||||
| Merger-related expenses | 7 | (12 | ) | (947 | ) | ||||||
| Total | $ | 8,361 | $ | 12,117 | $ | 9,975 | |||||
Net Interest Income. Net interest income before provision for loan losses for the 2018 first quarter totaled $120.1 million, compared with $126.4 million in the 2017 fourth quarter and $114.9 million in the year-ago first quarter. The decline in net interest income before provision for loan losses from the immediately preceding quarter largely reflects the recognition during the 2017 fourth quarter of approximately $3.0 million of additional accretion income related to acquired loans that was one-time in nature. No such benefit was recognized during the 2018 or 2017 first quarters. In addition, the Company noted that the 2018 first quarter had two fewer days of interest accrual when compared with the preceding fourth quarter.
The net interest margin (net interest income divided by average interest earning assets) for the 2018 first quarter declined 18 basis points to 3.66% from 3.84% in the 2017 fourth quarter and declined 11 basis points from 3.77% in the year-ago first quarter. The 2018 first quarter net interest margin was adversely impacted by the changes in the Company’s weighted average yield on loans and weighted average cost of deposits.
The weighted average yield on loans for the 2018 first quarter declined by 8 basis points to 5.04% from 5.12% in the 2017 fourth quarter, but increased 22 basis points when compared with the year-ago first quarter weighted average yield on loans of 4.82%. The decline in the weighted average yield on loans from the immediately preceding quarter largely reflects the impact of the previously mentioned additional accretion income. The increase in the weighted average yield on loans from the year-ago first quarter reflects the benefits of the increase in the fed funds rate in March, June and December of 2017 of 25 basis points each on the Company’s variable rate loan portfolio.
The weighted average cost of deposits for the 2018 first quarter increased 11 basis points to 0.91% from 0.80% in the 2017 fourth quarter and increased 36 basis points from 0.55% in the year-ago first quarter. The increases reflect the progressively competitive deposit market, as well as a modest shift in the mix to the higher-rate time deposits.
Noninterest Income. Noninterest income for the 2018 first quarter increased 21% to $19.9 million from $16.5 million in the 2017 fourth quarter and increased 13% from $17.6 million in the year-ago first quarter. The Company recognized net gains on sales of SBA loans of $3.5 million, $2.6 million and $3.3 million in the 2018 first quarter, 2017 fourth quarter and 2017 first quarter, respectively. Net gains on sales of residential mortgage loans amounted to $1.2 million, $1.3 million and $420,000 for the 2018 first quarter, 2017 fourth quarter and 2017 first quarter, respectively. The increase in other noninterest income for the first quarter of 2018 included $3.5 million of income recorded on certain equity investments held by the Company.
Noninterest Expense. Noninterest expense for the 2018 first quarter totaled $68.5 million, down 6% from $73.0 million in the preceding fourth quarter and up 1% from $67.7 million in the year-ago first quarter. As previously announced, the Company’s 2017 fourth quarter reflected elevated levels of noninterest expense due to several items, which were one-time or non-core in nature. Following an analysis of its LIHTC investments on an individual investment basis, the Company recognized a $3.3 million LIHTC impairment during the 2017 fourth quarter. 2017 fourth quarter noninterest expense also included $2.2 million of expenses related to special projects, as well as $1.0 million in expenses following an annual reassessment of the Company’s BOLI liabilities. The Company’s 2018 first quarter included $1.8 million of expenses related to special projects.
Salaries and employee benefits expense of $39.4 million for the 2018 first quarter was relatively stable with $39.6 million in preceding fourth quarter, but increased 15% from $34.2 million in the prior-year first quarter. The total number of FTEs, excluding employees on leave, as of March 31, 2018 was 1,502, compared with 1,470 as of December 31, 2017 and 1,352 as of March 31, 2017.
Income Tax Provision. The effective tax rate for the 2018 first quarter was 25.7%, compared with 72.8% in the preceding fourth quarter and 38.8% in the 2017 first quarter. The significant improvement reflects the enactment of the Tax Act, which lowered the corporate federal tax rate from 35% to 21%. In addition, the Company recognized during the 2017 fourth quarter a $25.4 million charge related to the revaluation of its DTA and LIHTC investments as a result of the passage of the Tax Act. Excluding the $25.4 million charge, the effective tax rate for the 2017 fourth quarter would have been 34.4%.
Balance Sheet Summary
Loans receivable increased 2% to $11.29 billion at March 31, 2018 from $11.10 billion at December 31, 2017, reflecting a 7% annualized growth rate. Year-over-year, loans receivable increased 7% from $10.55 billion at March 31, 2017.
Total new loan originations funded during the 2018 first quarter increased to $764.3 million and included SBA loan production of $78.2 million and residential mortgage loan originations of $179.2 million. This compares with 2017 fourth quarter new loan originations funded of $663.5 million, which included SBA loan production of $66.7 million and residential mortgage loan originations of $193.0 million. In the year-ago first quarter, new loans originations funded totaled $587.4 million, including SBA loan production of $75.3 million and residential mortgage loan originations of $58.0 million.
Sales of SBA loans to the secondary market and gains derived from those sales are based substantially on the production of SBA 7(a) loans. SBA 7(a) loan originations totaled $73.9 million for the 2018 first quarter, compared with $66.7 million for the fourth quarter of 2017 and $51.9 million for the year-ago first quarter. During the 2018 first quarter, the Company sold $48.6 million of its SBA loans held for sale, compared with $36.6 million in the immediately preceding fourth quarter and $44.9 million in the first quarter a year ago.
Aggregate loan pay offs and pay downs in the 2018 first quarter increased to $411.6 million from $380.9 million for the immediately preceding fourth quarter but declined modestly from $414.6 million in the year-ago first quarter.
Total deposits at March 31, 2018 amounted to $11.51 billion, up 6% from $10.85 billion at December 31, 2017 and up 8% from $10.70 billion at March 31, 2017. Noninterest bearing demand deposits accounted for 26.5%, 27.6% and 27.7% of total deposits as of March 31, 2018, December 31, 2017 and March 31, 2017, respectively.
Credit Quality
The provision for loan and lease losses for the 2018 first quarter was $2.5 million, compared with $3.6 million for the immediately preceding 2017 fourth quarter and $5.6 million for the year-ago first quarter.
For a more detailed understanding of the changes in the allowance for loan and lease losses (“ALLL”), the composition of the ALLL has been segmented for disclosure purposes between loans accounted for under the amortized cost method (referred to as “legacy loans”) and loans acquired through the Wilshire Bancorp, Center Financial, Pacific International and Foster Bankshares transactions (referred to as “purchased loans”). The purchased loans are further segregated between non-impaired and credit-impaired loans.
The composition of the ALLL as of March 31, 2018, December 31, 2017 and March 31, 2017 is as follows:
| (dollars in thousands) (unaudited) | 3/31/2018 | 12/31/2017 | 3/31/2017 | ||||||||
| Legacy loans (1) | $ | 72,045 | $ | 67,648 | $ | 64,055 | |||||
| Purchased non-impaired loans (2) | 2,601 | 4,853 | 2,468 | ||||||||
| Purchased credit-impaired loans (2) | 11,815 | 12,040 | 12,136 | ||||||||
| Total ALLL | $ | 86,461 | $ | 84,541 | $ | 78,659 | |||||
| Loans receivable | $ | 11,292,483 | $ | 11,102,575 | $ | 10,549,667 | |||||
| ALLL coverage ratio | 0.77 | % | 0.76 | % | 0.75 | % | |||||
(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 ALLL reflects provisions for credit deterioration since the acquisition date.
The Company defines nonperforming loans to include delinquent loans past due 90 days or more 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 at March 31, 2018 increased to $68.2 million, or 0.60% of loans receivable, from $46.8 million, or 0.42% of loans receivable, at December 31, 2017 and $37.0 million, or 0.35% of loans receivable at March 31, 2017. Accruing restructured loans amounted to $59.6 million at March 31, 2018, compared with $67.3 million at December 31, 2017 and $49.0 million at March 31, 2017. Total nonperforming loans at March 31, 2018 increased to $129.6 million, or 1.15% of loans receivable, from $114.4 million, or 1.03% of loans receivable December 31, 2017 and $86.3 million, or 0.82% of loans receivable at March 31, 2017.
Nonperforming assets, including nonperforming loans and OREO, totaled $140.1 million at March 31, 2018, compared with $125.2 million at December 31, 2017 and $105.4 million March 31, 2017. As a percentage of total assets, nonperforming assets was 0.97% at March 31, 2018, 0.88% at December 31, 2017 and 0.78% at March 31, 2017.
Following are the components of criticized loan balances as of March 31, 2018, December 31, 2017 and March 31, 2017:
| (dollars in thousands) (unaudited) | 3/31/2018 | 12/31/2017 | 3/31/2017 | |||||
| Special Mention (1) | $ | 196,082 | $ | 214,891 | $ | 225,967 | ||
| Classified (1) | 344,648 | 353,584 | 309,996 | |||||
| Criticized | $ | 540,730 | $ | 568,475 | $ | 535,963 | ||
(1) Balances include purchased loans which were marked to fair value on the date of acquisition.
For the 2018 first quarter, net charge offs totaled $580,000, or 0.02% of average loans receivable on an annualized basis. This compares with 2017 fourth quarter net charge offs of $2.7 million, or 0.10% of average loans receivable on an annualized basis, and $6.3 million, or 0.24% of average loans receivable on an annualized basis, for the year-ago first quarter.
The ALLL at March 31, 2018 was $86.5 million, or 0.77% of loans receivable (excluding loans held for sale), compared with $84.5 million, or 0.76% of loans receivable (excluding loans held for sale) at December 31, 2017 and $78.7 million, or 0.75% of loans receivable (excluding loans held for sale), at March 31, 2017. The coverage ratio of the ALLL to nonperforming loans (excluding purchased credit-impaired loans) was 66.69% at March 31, 2018, 73.88% at December 31, 2017 and 91.18% at March 31, 2017.
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 $128.1 at March 31, 2018, compared with $114.3 million at December 31, 2017 and $129.6 million at March 31, 2017.
Capital
At March 31, 2018, the Company and the Bank continued to exceed all regulatory capital requirements to be generally classified as a “well-capitalized” financial institution, as summarized in the following table:
| 3/31/2018 | 12/31/2017 | 3/31/2017 | Minimum Guideline for “Well-Capitalized” Institution | ||||||||
| Common Equity Tier 1 Capital | 12.35 | % | 12.30 | % | 12.22 | % | 6.50 | % | |||
| Tier 1 Leverage Ratio | 11.61 | % | 11.54 | % | 11.72 | % | 5.00 | % | |||
| Tier 1 Risk-based Ratio | 13.15 | % | 13.11 | % | 13.05 | % | 8.00 | % | |||
| Total Risk-based Ratio | 13.86 | % | 13.82 | % | 13.76 | % | 10.00 | % | |||
Tangible common equity per share and as a percentage of tangible assets are summarized in the following table:
| 3/31/2018 | 12/31/2017 | 3/31/2017 | |||||||||
| Tangible common equity per share (1) | $ | 10.81 | $ | 10.68 | $ | 10.32 | |||||
| Tangible common equity per share, excluding tax reform adjustments (1) | $ | 10.81 | $ | 10.87 | $ | 10.32 | |||||
| Tangible common equity to tangible assets (2) | 10.44 | % | 10.54 | % | 10.74 | % | |||||
(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. The accompanying financial information includes a reconciliation of the Company’s total stockholders’ equity to tangible common equity, including and excluding tax reform adjustments.
(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. The accompanying financial information includes a reconciliation of the Company’s total assets to tangible assets, including and excluding tax reform adjustments.
Management reviews tangible common equity per share and tangible common equity to tangible assets ratio in evaluating the Company’s and the Bank’s capital levels and has included these 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 18, 2018 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2018. 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 25, 2018, replay access code 10118672.
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 $14.5 billion in total assets as of March 31, 2018. 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 and Northern California; 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.
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: the Company’s inability to remediate its presently identified material weaknesses or to do so in a timely manner, the possibility that additional material weaknesses may arise in the future, and that a material weakness may have an impact on our reported financial results; 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.
Contact:
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 | 3/31/2018 | 12/31/2017 | % change | 3/31/2017 | % change | ||||||||||||
| Cash and due from banks | $ | 612,353 | $ | 492,000 | 24 | % | $ | 461,068 | 33 | % | |||||||
| Securities available for sale, at fair value | 1,699,315 | 1,720,257 | (1 | )% | 1,583,946 | 7 | % | ||||||||||
| Federal Home Loan Bank (“FHLB”) stock and other investments | 107,906 | 83,142 | 30 | % | 65,161 | 66 | % | ||||||||||
| Loans held for sale, at the lower of cost or fair value | 33,689 | 29,661 | 14 | % | 19,141 | 76 | % | ||||||||||
| Loans receivable | 11,292,483 | 11,102,575 | 2 | % | 10,549,667 | 7 | % | ||||||||||
| Allowance for loan losses | (86,461 | ) | (84,541 | ) | (2 | )% | (78,659 | ) | (10 | )% | |||||||
| Net loans receivable | 11,206,022 | 11,018,034 | 2 | % | 10,471,008 | 7 | % | ||||||||||
| Accrued interest receivable | 29,154 | 29,979 | (3 | )% | 25,683 | 14 | % | ||||||||||
| Premises and equipment, net | 56,564 | 56,714 | — | % | 54,425 | 4 | % | ||||||||||
| Bank owned life insurance | 75,302 | 74,915 | 1 | % | 74,090 | 2 | % | ||||||||||
| Goodwill | 464,450 | 464,450 | — | % | 463,975 | — | % | ||||||||||
| Servicing assets | 24,866 | 24,710 | 1 | % | 25,941 | (4 | )% | ||||||||||
| Other intangible assets, net | 15,907 | 16,523 | (4 | )% | 18,550 | (14 | )% | ||||||||||
| Other assets | 181,598 | 196,332 | (8 | )% | 218,441 | (17 | )% | ||||||||||
| Total assets | 14,507,126 | 14,206,717 | 2 | % | 13,481,429 | 8 | % | ||||||||||
| Liabilities | |||||||||||||||||
| Deposits | $ | 11,510,569 | $ | 10,846,609 | 6 | % | $ | 10,703,777 | 8 | % | |||||||
| FHLB advances and fed funds purchased | 862,346 | 1,227,593 | (30 | )% | 703,850 | 23 | % | ||||||||||
| Subordinated debentures | 101,117 | 100,853 | — | % | 100,067 | 1 | % | ||||||||||
| Accrued interest payable | 19,614 | 15,961 | 23 | % | 10,592 | 85 | % | ||||||||||
| Other liabilities | 68,147 | 87,446 | (22 | )% | 85,096 | (20 | )% | ||||||||||
| Total liabilities | 12,561,793 | 12,278,462 | 2 | % | 11,603,382 | 8 | % | ||||||||||
| Stockholders’ Equity | |||||||||||||||||
| Common stock, $0.001 par value; authorized, 150,000,000 shares at March, 31, 2018, December, 31, 2017 and March, 31, 2017; issued and outstanding, 135,516,119, 135,511,891 and 135,248,185 at March, 31, 2018, December, 31, 2017 and March, 31, 2017, respectively | $ | 136 | $ | 136 | — | % | $ | 135 | 1 | % | |||||||
| Capital surplus | 1,405,806 | 1,405,014 | — | % | 1,401,275 | — | % | ||||||||||
| Retained earnings | 578,031 | 544,886 | 6 | % | 489,486 | 18 | % | ||||||||||
| Accumulated other comprehensive loss, net | (38,640 | ) | (21,781 | ) | (77 | )% | (12,849 | ) | (201 | )% | |||||||
| Total stockholders’ equity | 1,945,333 | 1,928,255 | 1 | % | 1,878,047 | 4 | % | ||||||||||
| Total liabilities and stockholders’ equity | $ | 14,507,126 | $ | 14,206,717 | 2 | % | $ | 13,481,429 | 8 | % | |||||||
| Hope Bancorp, Inc. | |||||||||||||||||
| Selected Financial Data | |||||||||||||||||
| Unaudited (dollars in thousands, except share data) | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| 3/31/2018 | 12/31/2017 | % change | 3/31/2017 | % change | |||||||||||||
| Interest income: | |||||||||||||||||
| Interest and fees on loans | $ | 137,943 | $ | 141,129 | (2 | )% | $ | 123,294 | 12 | % | |||||||
| Interest on securities | 10,101 | 10,523 | (4 | )% | 8,113 | 25 | % | ||||||||||
| Interest on federal funds sold and other investments | 2,366 | 1,533 | 54 | % | 1,336 | 77 | % | ||||||||||
| Total interest income | 150,410 | 153,185 | (2 | )% | 132,743 | 13 | % | ||||||||||
| Interest expense: | |||||||||||||||||
| Interest on deposits | 24,849 | 21,901 | 13 | % | 14,511 | 71 | % | ||||||||||
| Interest on other borrowings | 5,493 | 4,892 | 12 | % | 3,327 | 65 | % | ||||||||||
| Total interest expense | 30,342 | 26,793 | 13 | % | 17,838 | 70 | % | ||||||||||
| Net interest income before provision for loan losses | 120,068 | 126,392 | (5 | )% | 114,905 | 4 | % | ||||||||||
| Provision for loan losses | 2,500 | 3,600 | (31 | )% | 5,600 | (55 | )% | ||||||||||
| Net interest income after provision for loan losses | 117,568 | 122,792 | (4 | )% | 109,305 | 8 | % | ||||||||||
| Noninterest income: | |||||||||||||||||
| Service fees on deposit accounts | 4,801 | 4,951 | (3 | )% | 5,338 | (10 | )% | ||||||||||
| Net gains on sales of SBA loans | 3,450 | 2,626 | 31 | % | 3,250 | 6 | % | ||||||||||
| Net gains on sales of other loans | 1,196 | 1,308 | (9 | )% | 420 | 185 | % | ||||||||||
| Net gains on sales of securities available for sale | — | 301 | (100 | )% | — | ||||||||||||
| Other income and fees | 10,403 | 7,265 | 43 | % | 8,595 | 21 | % | ||||||||||
| Total noninterest income | 19,850 | 16,451 | 21 | % | 17,603 | 13 | % | ||||||||||
| Noninterest expense: | |||||||||||||||||
| Salaries and employee benefits | 39,385 | 39,570 | — | % | 34,166 | 15 | % | ||||||||||
| Occupancy | 7,239 | 7,108 | 2 | % | 7,194 | 1 | % | ||||||||||
| Furniture and equipment | 3,721 | 4,032 | (8 | )% | 3,413 | 9 | % | ||||||||||
| Advertising and marketing | 2,299 | 2,246 | 2 | % | 3,424 | (33 | )% | ||||||||||
| Data processing and communications | 3,495 | 2,676 | 31 | % | 3,606 | (3 | )% | ||||||||||
| Professional fees | 3,106 | 4,553 | (32 | )% | 3,902 | (20 | )% | ||||||||||
| FDIC assessment | 1,767 | 1,897 | (7 | )% | 1,010 | 75 | % | ||||||||||
| Credit related expenses | 772 | 1,073 | (28 | )% | 1,883 | (59 | )% | ||||||||||
| Other real estate owned (“OREO”) expense, net | (104 | ) | 237 | N/A | 997 | N/A | |||||||||||
| Merger-related expenses | (7 | ) | 12 | N/A | 947 | N/A | |||||||||||
| Other | 6,780 | 9,624 | (30 | )% | 7,157 | (5 | )% | ||||||||||
| Total noninterest expense | 68,453 | 73,028 | (6 | )% | 67,699 | 1 | % | ||||||||||
| Income before income taxes | 68,965 | 66,215 | 4 | % | 59,209 | 16 | % | ||||||||||
| Income tax provision | 17,733 | 48,231 | (63 | )% | 22,999 | (23 | )% | ||||||||||
| Net income | $ | 51,232 | $ | 17,984 | 185 | % | $ | 36,210 | 41 | % | |||||||
| Earnings Per Common Share: | |||||||||||||||||
| Basic | $ | 0.38 | $ | 0.13 | $ | 0.27 | |||||||||||
| Diluted | $ | 0.38 | $ | 0.13 | $ | 0.27 | |||||||||||
| Average Shares Outstanding: | |||||||||||||||||
| Basic | 135,518,705 | 135,505,041 | 135,248,018 | ||||||||||||||
| Diluted | 135,815,262 | 135,752,978 | 135,768,645 | ||||||||||||||
| Hope Bancorp, Inc. | ||||||||
| Selected Financial Data | ||||||||
| Unaudited (dollars in thousands, except share data) | ||||||||
| For the Three Months Ended (Annualized) | ||||||||
| Profitability measures: | 3/31/2018 | 12/31/2017 | 3/31/2017 | |||||
| ROA | 1.44 | % | 0.51 | % | 1.09 | % | ||
| ROE | 10.61 | % | 3.70 | % | 7.75 | % | ||
| Return on average tangible equity 1 | 14.13 | % | 4.92 | % | 10.44 | % | ||
| Net interest margin | 3.66 | % | 3.84 | % | 3.77 | % | ||
| Efficiency ratio | 48.92 | % | 51.12 | % | 51.09 | % | ||
| 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. | ||||||||
| Hope Bancorp, Inc. | ||||||||||||||||||||||||||||||||
| Selected Financial Data | ||||||||||||||||||||||||||||||||
| Unaudited (dollars in thousands, except share data) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
| 3/31/2018 | 12/31/2017 | 3/31/2017 | ||||||||||||||||||||||||||||||
| 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 receivable, including loans held for sale | $ | 11,095,864 | $ | 137,943 | 5.04 | % | $ | 10,931,523 | $ | 141,129 | 5.12 | % | $ | 10,381,771 | $ | 123,294 | 4.82 | % | ||||||||||||||
| Securities available for sale | 1,673,122 | 10,101 | 2.45 | % | 1,794,260 | 10,523 | 2.33 | % | 1,567,497 | 8,113 | 2.10 | % | ||||||||||||||||||||
| FHLB stock and other investments | 517,572 | 2,366 | 1.85 | % | 345,363 | 1,533 | 1.76 | % | 423,955 | 1,336 | 1.28 | % | ||||||||||||||||||||
| Total interest earning assets | $ | 13,286,558 | $ | 150,410 | 4.59 | % | $ | 13,071,146 | $ | 153,185 | 4.65 | % | $ | 12,373,223 | $ | 132,743 | 4.35 | % | ||||||||||||||
| INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||||
| Demand, interest bearing | $ | 3,402,760 | $ | 8,864 | 1.06 | % | $ | 3,538,995 | $ | 8,564 | 0.96 | % | $ | 3,436,984 | $ | 7,191 | 0.85 | % | ||||||||||||||
| Savings | 236,216 | 424 | 0.73 | % | 241,667 | 439 | 0.72 | % | 293,609 | 287 | 0.40 | % | ||||||||||||||||||||
| Time deposits | 4,525,813 | 15,561 | 1.39 | % | 4,072,565 | 12,898 | 1.26 | % | 4,009,179 | 7,033 | 0.71 | % | ||||||||||||||||||||
| Total interest bearing deposits | 8,164,789 | 24,849 | 1.23 | % | 7,853,227 | 21,901 | 1.11 | % | 7,739,772 | 14,511 | 0.76 | % | ||||||||||||||||||||
| FHLB advances and fed funds purchased | 974,071 | 4,069 | 1.69 | % | 1,003,951 | 3,531 | 1.40 | % | 662,472 | 2,139 | 1.31 | % | ||||||||||||||||||||
| Subordinated debentures | 97,049 | 1,424 | 5.87 | % | 96,786 | 1,361 | 5.50 | % | 95,911 | 1,188 | 4.95 | % | ||||||||||||||||||||
| Total interest bearing liabilities | 9,235,909 | $ | 30,342 | 1.33 | % | 8,953,964 | $ | 26,793 | 1.19 | % | 8,498,155 | $ | 17,838 | 0.85 | % | |||||||||||||||||
| Noninterest bearing demand deposits | 2,941,577 | 3,029,958 | 2,868,339 | |||||||||||||||||||||||||||||
| Total funding liabilities/cost of funds | $ | 12,177,486 | 1.01 | % | $ | 11,983,922 | 0.89 | % | $ | 11,366,494 | 0.64 | % | ||||||||||||||||||||
| Net interest income/net interest spread | $ | 120,068 | 3.26 | % | $ | 126,392 | 3.46 | % | $ | 114,905 | 3.50 | % | ||||||||||||||||||||
| Net interest margin | 3.66 | % | 3.84 | % | 3.77 | % | ||||||||||||||||||||||||||
| Cost of deposits: | ||||||||||||||||||||||||||||||||
| Noninterest bearing demand deposits | $ | 2,941,577 | $ | 3,029,958 | $ | 2,868,339 | ||||||||||||||||||||||||||
| Interest bearing deposits | 8,164,789 | 24,849 | 1.23 | % | 7,853,227 | 21,901 | 1.11 | % | 7,739,772 | 14,511 | 0.76 | % | ||||||||||||||||||||
| Total deposits | $ | 11,106,366 | $ | 24,849 | 0.91 | % | $ | 10,883,185 | $ | 21,901 | 0.80 | % | $ | 10,608,111 | $ | 14,511 | 0.55 | % | ||||||||||||||
| Hope Bancorp, Inc. | |||||||||||||||||
| Selected Financial Data | |||||||||||||||||
| Unaudited (dollars in thousands, except share data) | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| AVERAGE BALANCES: | 3/31/2018 | 12/31/2017 | % change | 3/31/2017 | % change | ||||||||||||
| Loans receivable, including loans held for sale | $ | 11,095,864 | $ | 10,931,523 | 2 | % | $ | 10,381,771 | 7 | % | |||||||
| Investments | 2,190,694 | 2,139,623 | 2 | % | 1,991,452 | 10 | % | ||||||||||
| Interest earning assets | 13,286,558 | 13,071,146 | 2 | % | 12,373,223 | 7 | % | ||||||||||
| Total assets | 14,214,510 | 14,043,102 | 1 | % | 13,335,727 | 7 | % | ||||||||||
| Interest bearing deposits | 8,164,789 | 7,853,227 | 4 | % | 7,739,772 | 5 | % | ||||||||||
| Interest bearing liabilities | 9,235,909 | 8,953,964 | 3 | % | 8,498,155 | 9 | % | ||||||||||
| Noninterest bearing demand deposits | 2,941,577 | 3,029,958 | (3 | )% | 2,868,339 | 3 | % | ||||||||||
| Stockholders’ equity | 1,931,290 | 1,944,404 | (1 | )% | 1,868,998 | 3 | % | ||||||||||
| Net interest earning assets | 4,050,649 | 4,117,182 | (2 | )% | 3,875,068 | 5 | % | ||||||||||
| LOAN PORTFOLIO COMPOSITION: | 3/31/2018 | 12/31/2017 | % change | 3/31/2017 | % change | ||||||||||||
| Commercial loans | $ | 2,007,686 | $ | 1,947,533 | 3 | % | $ | 1,840,193 | 9 | % | |||||||
| Real estate loans | 8,529,153 | 8,508,222 | — | % | 8,291,188 | 3 | % | ||||||||||
| Consumer and other loans | 755,621 | 647,102 | 17 | % | 420,169 | 80 | % | ||||||||||
| Loans outstanding | 11,292,460 | 11,102,857 | 2 | % | 10,551,550 | 7 | % | ||||||||||
| Unamortized deferred loan fees - net of costs | 23 | (282 | ) | N/A | (1,883 | ) | N/A | ||||||||||
| Loans, net of deferred loan fees and costs | 11,292,483 | 11,102,575 | 2 | % | 10,549,667 | 7 | % | ||||||||||
| Allowance for loan losses | (86,461 | ) | (84,541 | ) | 2 | % | (78,659 | ) | 10 | % | |||||||
| Loan receivable, net | $ | 11,206,022 | $ | 11,018,034 | 2 | % | $ | 10,471,008 | 7 | % | |||||||
| REAL ESTATE LOANS BY PROPERTY TYPE: | 3/31/2018 | 12/31/2017 | % change | 3/31/2017 | % change | ||||||||||||
| Retail buildings | $ | 2,342,086 | $ | 2,375,588 | (1 | )% | $ | 2,213,627 | 6 | % | |||||||
| Hotels/motels | 1,637,416 | 1,631,314 | — | % | 1,593,758 | 3 | % | ||||||||||
| Gas stations/car washes | 978,454 | 964,246 | 1 | % | 938,158 | 4 | % | ||||||||||
| Mixed-use facilities | 651,473 | 624,401 | 4 | % | 596,074 | 9 | % | ||||||||||
| Warehouses | 934,389 | 915,465 | 2 | % | 899,009 | 4 | % | ||||||||||
| Multifamily | 445,930 | 455,463 | (2 | )% | 443,632 | 1 | % | ||||||||||
| Other | 1,539,405 | 1,541,745 | — | % | 1,606,930 | (4 | )% | ||||||||||
| Total | $ | 8,529,153 | $ | 8,508,222 | — | % | $ | 8,291,188 | 3 | % | |||||||
| DEPOSIT COMPOSITION | 3/31/2018 | 12/31/2017 | % change | 3/31/2017 | % change | ||||||||||||
| Noninterest bearing demand deposits | $ | 3,048,181 | $ | 2,998,734 | 2 | % | $ | 2,963,947 | 3 | % | |||||||
| Money market and other | 3,454,660 | 3,332,703 | 4 | % | 3,481,231 | (1 | )% | ||||||||||
| Saving deposits | 233,014 | 240,509 | (3 | )% | 289,924 | (20 | )% | ||||||||||
| Time deposits | 4,774,714 | 4,274,663 | 12 | % | 3,968,675 | 20 | % | ||||||||||
| Total deposit balances | $ | 11,510,569 | $ | 10,846,609 | 6 | % | $ | 10,703,777 | 8 | % | |||||||
| DEPOSIT COMPOSITION (%) | 3/31/2018 | 12/31/2017 | 3/31/2017 | ||||||||||||||
| Noninterest bearing demand deposits | 26.5 | % | 27.6 | % | 27.7 | % | |||||||||||
| Money market and other | 30.0 | % | 30.7 | % | 32.5 | % | |||||||||||
| Saving deposits | 2.0 | % | 2.2 | % | 2.7 | % | |||||||||||
| Time deposits | 41.5 | % | 39.5 | % | 37.1 | % | |||||||||||
| Total deposit balances | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
| Hope Bancorp, Inc. | |||||||||||||||||||
| Selected Financial Data | |||||||||||||||||||
| Unaudited (dollars in thousands, except share data) | |||||||||||||||||||
| CAPITAL RATIOS: | 3/31/2018 | 12/31/2017 | 3/31/2017 | ||||||||||||||||
| Total stockholders’ equity | $ | 1,945,333 | $ | 1,928,255 | $ | 1,878,047 | |||||||||||||
| Common Equity Tier 1 ratio | 12.35 | % | 12.30 | % | 12.22 | % | |||||||||||||
| Tier 1 risk-based capital ratio | 13.15 | % | 13.11 | % | 13.05 | % | |||||||||||||
| Total risk-based capital ratio | 13.86 | % | 13.82 | % | 13.76 | % | |||||||||||||
| Tier 1 leverage ratio | 11.61 | % | 11.54 | % | 11.72 | % | |||||||||||||
| Total risk weighted assets | $ | 12,172,708 | $ | 11,965,215 | 11,571,354 | ||||||||||||||
| Book value per common share | $ | 14.35 | $ | 14.23 | $ | 13.89 | |||||||||||||
| Tangible common equity to tangible assets 2 | 10.44 | % | 10.54 | % | 10.74 | % | |||||||||||||
| Tangible common equity per share 2 | $ | 10.81 | $ | 10.68 | $ | 10.32 | |||||||||||||
| 2 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 | |||||||||||||||||||
| 3/31/2018 | 12/31/2017 | 3/31/2017 | |||||||||||||||||
| TANGIBLE COMMON EQUITY | |||||||||||||||||||
| Total stockholders’ equity | $ | 1,945,333 | $ | 1,928,255 | $ | 1,878,047 | |||||||||||||
| Less: Goodwill and core deposit intangible assets, net | (480,357 | ) | (480,973 | ) | (482,525 | ) | |||||||||||||
| Tangible common equity | $ | 1,464,976 | $ | 1,447,282 | $ | 1,395,522 | |||||||||||||
| Total assets | $ | 14,507,126 | $ | 14,206,717 | $ | 13,481,429 | |||||||||||||
| Less: Goodwill and core deposit intangible assets, net | (480,357 | ) | (480,973 | ) | (482,525 | ) | |||||||||||||
| Tangible assets | $ | 14,026,769 | $ | 13,725,744 | $ | 12,998,904 | |||||||||||||
| Common shares outstanding | 135,516,119 | 135,511,891 | 135,248,185 | ||||||||||||||||
| Tangible common equity to tangible assets | 10.44 | % | 10.54 | % | 10.74 | % | |||||||||||||
| Tangible common equity per share | $ | 10.81 | $ | 10.68 | $ | 10.32 | |||||||||||||
| Three Months Ended | |||||||||||||||||||
| EPS EXCLUDING TAX REFORM ADJUSTMENTS | 03/31/2018 | 12/31/2017 | 3/31/2017 | ||||||||||||||||
| Net income | $ | 51,232 | $ | 17,984 | $ | 36,210 | |||||||||||||
| Add back tax reform adjustments: | |||||||||||||||||||
| Deferred tax asset | — | 23,835 | — | ||||||||||||||||
| Investments in affordable housing partnerships | — | 1,588 | — | ||||||||||||||||
| Net income, excluding tax reform adjustments | $ | 51,232 | $ | 43,407 | $ | 36,210 | |||||||||||||
| Weighted average diluted common shares | 135,815,262 | 135,752,978 | 135,768,645 | ||||||||||||||||
| Diluted EPS, excluding tax reform adjustments | $ | 0.38 | $ | 0.32 | $ | 0.27 | |||||||||||||
| TANGIBLE COMMON EQUITY PER SHARE EXCLUDING TAX REFORM ADJUSTMENTS | 3/31/2018 | 12/31/2017 | 9/30/2017 | ||||||||||||||||
| Tangible common equity | $ | 1,464,976 | $ | 1,447,282 | $ | 1,395,522 | |||||||||||||
| Add back tax reform adjustments: | |||||||||||||||||||
| Deferred tax asset | — | 23,835 | — | ||||||||||||||||
| Investments in affordable housing partnerships | — | 1,588 | — | ||||||||||||||||
| Tangible common equity, excluding tax reform adjustments | $ | 1,464,976 | $ | 1,472,705 | $ | 1,395,522 | |||||||||||||
| Common shares outstanding | 135,516,119 | 135,511,891 | 135,248,185 | ||||||||||||||||
| Tangible common equity per share, excluding tax reform adjustments | $ | 10.81 | $ | 10.87 | $ | 10.32 | |||||||||||||
| Three Months Ended | |||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES: | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||
| Balance at beginning of period | $ | 84,541 | $ | 83,633 | $ | 80,074 | $ | 78,659 | $ | 79,343 | |||||||||
| Provision for loan losses | 2,500 | 3,600 | 5,400 | 2,760 | 5,600 | ||||||||||||||
| Recoveries | 488 | 1,078 | 3,072 | 777 | 321 | ||||||||||||||
| Charge offs | (1,068 | ) | (3,770 | ) | (4,913 | ) | (2,122 | ) | (6,605 | ) | |||||||||
| Balance at end of period | $ | 86,461 | $ | 84,541 | $ | 83,633 | $ | 80,074 | $ | 78,659 | |||||||||
| Net charge offs/average loans receivable (annualized) | 0.02 | % | 0.10 | % | 0.07 | % | 0.05 | % | 0.24 | % | |||||||||
| Three Months Ended | |||||||||||||||||||
| NET CHARGED OFF (RECOVERED) LOANS BY TYPE: | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||
| Real estate loans | $ | (37 | ) | $ | 342 | $ | 314 | $ | 830 | $ | 1,444 | ||||||||
| Commercial loans | 291 | 2,170 | 1,293 | 276 | 4,564 | ||||||||||||||
| Consumer loans | 326 | 180 | 234 | 239 | 276 | ||||||||||||||
| Total net charge offs | $ | 580 | $ | 2,692 | $ | 1,841 | $ | 1,345 | $ | 6,284 | |||||||||
| Hope Bancorp, Inc. | |||||||||||||||||||
| Selected Financial Data | |||||||||||||||||||
| Unaudited (dollars in thousands, except share data) | |||||||||||||||||||
| NONPERFORMING ASSETS | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||
| Delinquent loans on nonaccrual status 3 | $ | 68,152 | $ | 46,775 | $ | 43,323 | $ | 47,361 | $ | 37,009 | |||||||||
| Delinquent loans 90 days or more on accrual status 4 | 1,894 | 407 | 407 | 1,850 | 275 | ||||||||||||||
| Accruing troubled debt restructured loans | 59,596 | 67,250 | 64,807 | 53,290 | 48,984 | ||||||||||||||
| Total nonperforming loans | 129,642 | 114,432 | 108,537 | 102,501 | 86,268 | ||||||||||||||
| Other real estate owned | 10,463 | 10,787 | 17,208 | 21,839 | 19,096 | ||||||||||||||
| Total nonperforming assets | $ | 140,105 | $ | 125,219 | $ | 125,745 | $ | 124,340 | $ | 105,364 | |||||||||
| Nonperforming assets/total assets | 0.97 | % | 0.88 | % | 0.89 | % | 0.90 | % | 0.78 | % | |||||||||
| Nonperforming assets/loans receivable & OREO | 1.24 | % | 1.13 | % | 1.15 | % | 1.15 | % | 1.00 | % | |||||||||
| Nonperforming assets/total capital | 7.20 | % | 6.49 | % | 6.50 | % | 6.52 | % | 5.61 | % | |||||||||
| Nonperforming loans/loans receivable | 1.15 | % | 1.03 | % | 0.99 | % | 0.95 | % | 0.82 | % | |||||||||
| Nonaccrual loans/loans receivable | 0.60 | % | 0.42 | % | 0.40 | % | 0.44 | % | 0.35 | % | |||||||||
| Allowance for loan losses/loans receivable | 0.77 | % | 0.76 | % | 0.76 | % | 0.74 | % | 0.75 | % | |||||||||
| Allowance for loan losses/nonaccrual loans | 126.86 | % | 180.74 | % | 193.05 | % | 169.07 | % | 212.54 | % | |||||||||
| Allowance for loan losses/nonperforming loans | 66.69 | % | 73.88 | % | 77.05 | % | 78.12 | % | 91.18 | % | |||||||||
| Allowance for loan losses/nonperforming assets | 61.71 | % | 67.51 | % | 66.51 | % | 64.40 | % | 74.65 | % | |||||||||
| 3 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $21.9 million, $22.1 million, $21.5 million, $15.5 million, and $15.2 million at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively. | |||||||||||||||||||
| 4 Excludes Acquired Credit Impaired Loans that are delinquent 90 or more days totaling $17.0 million, $18.1 million, $20.4 million, $16.3 million, and $17.3 million at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively. | |||||||||||||||||||
| BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS BY TYPE: | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||
| Retail buildings | $ | 8,034 | $ | 8,183 | $ | 6,807 | $ | 6,396 | $ | 5,794 | |||||||||
| Hotels/motels | 1,265 | 1,273 | 1,279 | 1,287 | 1,300 | ||||||||||||||
| Gas stations/car washes | — | — | — | — | — | ||||||||||||||
| Mixed-use facilities | 2,852 | 129 | 131 | 133 | 134 | ||||||||||||||
| Warehouses | 7,615 | 5,577 | 5,185 | 5,253 | 5,321 | ||||||||||||||
| Other 5 | 39,830 | 52,088 | 51,405 | 40,221 | 36,435 | ||||||||||||||
| Total | $ | 59,596 | $ | 67,250 | $ | 64,807 | $ | 53,290 | $ | 48,984 | |||||||||
| 5 Includes commercial business and other loans | |||||||||||||||||||
| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||
| Legacy | |||||||||||||||||||
| 30 - 59 days | $ | 22,126 | $ | 16,092 | $ | 8,857 | $ | 5,910 | $ | 10,198 | |||||||||
| 60 - 89 days | 2,102 | 1,724 | 3,572 | 11,740 | 3,978 | ||||||||||||||
| Total | $ | 24,228 | $ | 17,816 | $ | 12,429 | $ | 17,650 | $ | 14,176 | |||||||||
| Acquired | |||||||||||||||||||
| 30 - 59 days | $ | 9,158 | $ | 4,242 | $ | 1,429 | $ | 6,373 | $ | 5,249 | |||||||||
| 60 - 89 days | 1,011 | 1,895 | 1,687 | 996 | 1,007 | ||||||||||||||
| Total | $ | 10,169 | $ | 6,137 | $ | 3,116 | $ | 7,369 | $ | 6,256 | |||||||||
| Total delinquent loans 30-89 days past due | $ | 34,397 | $ | 23,953 | $ | 15,545 | $ | 25,019 | $ | 20,433 | |||||||||
| Hope Bancorp, Inc. | |||||||||||||||||||
| Selected Financial Data | |||||||||||||||||||
| Unaudited (dollars in thousands, except share data) | |||||||||||||||||||
| DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||
| Legacy | |||||||||||||||||||
| Real estate loans | $ | 12,272 | $ | 9,008 | $ | 7,850 | $ | 14,126 | $ | 12,575 | |||||||||
| Commercial loans | 1,994 | 1,302 | 3,771 | 3,333 | 1,404 | ||||||||||||||
| Consumer loans | 9,962 | 7,506 | 808 | 191 | 198 | ||||||||||||||
| Total delinquent loans 30-89 days past due - legacy | $ | 24,228 | $ | 17,816 | $ | 12,429 | $ | 17,650 | $ | 14,177 | |||||||||
| Acquired | |||||||||||||||||||
| Real estate loans | $ | 7,537 | $ | 3,937 | $ | 2,323 | $ | 5,786 | $ | 5,211 | |||||||||
| Commercial loans | 2,280 | 1,244 | 793 | 1,519 | 360 | ||||||||||||||
| Consumer loans | 352 | 956 | — | 64 | 684 | ||||||||||||||
| Total delinquent loans 30-89 days past due - acquired | $ | 10,169 | $ | 6,137 | $ | 3,116 | $ | 7,369 | $ | 6,255 | |||||||||
| Total delinquent loans 30-89 days past due | $ | 34,397 | $ | 23,953 | $ | 15,545 | $ | 25,019 | $ | 20,432 | |||||||||
| NONACCRUAL LOANS BY TYPE | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||
| Real estate loans | $ | 37,093 | $ | 22,194 | $ | 31,453 | $ | 33,503 | $ | 26,550 | |||||||||
| Commercial loans | 29,446 | 23,099 | 10,682 | 12,874 | 10,117 | ||||||||||||||
| Consumer loans | 1,613 | 1,482 | 1,188 | 984 | 342 | ||||||||||||||
| Total nonaccrual loans | $ | 68,152 | $ | 46,775 | $ | 43,323 | $ | 47,361 | $ | 37,009 | |||||||||
| CRITICIZED LOANS | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||
| Legacy | |||||||||||||||||||
| Special mention | $ | 140,588 | $ | 151,413 | $ | 131,785 | $ | 152,373 | $ | 127,431 | |||||||||
| Substandard | 180,631 | 179,795 | 197,993 | 177,097 | 167,748 | ||||||||||||||
| Doubtful | 108 | — | 216 | 2,208 | 233 | ||||||||||||||
| Loss | — | — | — | — | — | ||||||||||||||
| Total criticized loans - legacy | $ | 321,327 | $ | 331,208 | $ | 329,994 | $ | 331,678 | $ | 295,412 | |||||||||
| Acquired | |||||||||||||||||||
| Special mention | $ | 55,494 | $ | 63,478 | $ | 93,443 | $ | 98,684 | $ | 98,536 | |||||||||
| Substandard | 163,429 | 173,427 | 148,615 | 134,474 | 139,964 | ||||||||||||||
| Doubtful | 477 | 362 | 1,285 | 1,660 | 2,051 | ||||||||||||||
| Loss | 3 | — | — | — | — | ||||||||||||||
| Total criticized loans - acquired | $ | 219,403 | $ | 237,267 | $ | 243,343 | $ | 234,818 | $ | 240,551 | |||||||||
| Total criticized loans | $ | 540,730 | $ | 568,475 | $ | 573,337 | $ | 566,496 | $ | 535,963 | |||||||||