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Hope Bancorp Reports 2016 Third Quarter Financial Results

-- Third Quarter Results Reflect One Month of Stand-Alone BBCN and Two Months of Combined Operations --

/EIN News/ -- Q3 2016 Summary:

  • Completes merger of equals creating the only super regional Korean-American bank in the United States
  • Loans receivable increase 60% quarter-over-quarter to $10.56 billion
  • Total deposits increase 61% quarter-over-quarter to $10.70 billion
  • Total assets increase 62% quarter-over-quarter to $13.51 billion
  • Net income totals $26.1 million, or $0.22 per diluted common share, including merger-related expenses of $11.2 million
  • New loan originations amount to $559 million

LOS ANGELES, Oct. 18, 2016 (GLOBE NEWSWIRE) -- Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported financial results for its three and nine-month periods ended September 30, 2016.

The mergers of Wilshire Bancorp, Inc. (“Wilshire”) with and into BBCN Bancorp, Inc. (“BBCN”) and Wilshire Bank with and into BBCN Bank were completed on July 29, 2016, and the combined company began operations under the new banners of Hope Bancorp, Inc. and Bank of Hope effective July 30, 2016.  The 2016 third quarter financial results reflect approximately one month of stand-alone operations of the former BBCN and two months of combined operations following the completion of the merger.  As a result, the Company’s 2016 third quarter financial results may not be comparable to financial results in prior periods.

For the three months ended September 30, 2016, net income totaled $26.1 million, or $0.22 per diluted common share based on 116,653,168 weighted average diluted shares outstanding, and included merger-related expenses of $11.2 million before tax.  This compares with net income of $23.4 million, or $0.29 per diluted common share based on 79,634,762 weighted average diluted shares outstanding, for the three months ended June 30, 2016 and $25.1 million, or $0.32 per diluted common share based on 79,584,536 weight average diluted shares outstanding, for the three months ended September 30, 2015.  Merger-related expenses for the 2016 second quarter and 2015 third quarter amounted to $1.5 million and $24,000, respectively.

“It has certainly been an exciting and busy quarter for our new company as we merged the former BBCN and Wilshire to form the only Korean-American super regional bank in the United States,” said Kevin S. Kim, President and Chief Executive Officer of Hope Bancorp, Inc.  “We are very pleased with the progress made to date, and believe our past experience with mergers and acquisitions has been invaluable in helping us anticipate potential issues and effectively plan and execute the integration.  I believe we are off to a very good start in leveraging the strengths of our organization, and clearly anticipate our financial performance will improve as merger-related costs dissipate and we begin to realize the cost savings and other synergies that we expect from the merger.  Despite the significant time and resources dedicated to completing the merger and integrating the two banks, new loan volumes were solid.  We are particularly pleased with the improved mix of loan originations with commercial and industrial loans accounting for 31% of total loan originations for the quarter and commercial real estate 52%.

“With the strong momentum we have built from the merger, we are very optimistic about the future of our organization and the value proposition that we provide to our customers, employees and shareholders.  Given the significantly enhanced scale, convenience and brand recognition that we have as the definitive leader in our community, we believe we are well positioned to capture additional market share in both well established and newly developing markets.  We look forward to keeping everyone apprised of our ongoing achievements,” said Kim.

Financial Highlights

(dollars in thousands, except per share data) At or for the Three Months Ended
  9/30/2016   6/30/2016   9/30/2015
Net income $ 26,105     $ 23,390     $ 25,092  
Diluted earnings per share $ 0.22     $ 0.29     $ 0.32  
Net interest income before provision for loan losses $ 103,474     $ 71,064     $ 68,761  
Net interest margin   3.77 %     3.67 %     3.87 %
Noninterest income $ 14,146     $ 10,707     $ 11,183  
Noninterest expense $ 67,846     $ 40,348     $ 36,755  
Net loans receivable $ 10,481,221     $ 6,507,812     $ 6,171,933  
Deposits $ 10,702,505     $ 6,637,522     $ 6,340,976  
Nonaccrual loans (1) $ 40,602     $ 42,398     $ 32,446  
ALLL to loans receivable   0.76 %     1.16 %     1.19 %
ALLL to nonaccrual loans (1)   196.98 %     180.26 %     219.16 %
ALLL to nonperforming assets (1) (2)   68.38 %     69.62 %     65.80 %
Provision for loan losses $ 6,500     $ 1,200     $ 600  
Net charge offs (recoveries) $ 2,574     $ 1,631     $ (392 )
ROA   0.89 %     1.15 %     1.35 %
ROE   6.60 %     9.67 %     10.96 %
Efficiency ratio   57.68 %     49.34 %     45.98 %

(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $14.1 million,  $15.5 million and $19.9 million at September 30, 2016, June 30, 2016, and September 30, 2015, respectively.
(2) Nonperforming assets exclude purchased credit-impaired loans totaling $16.4 million, $13.8 million and $18.5 million at September 30, 2016, June 30, 2016, and September 30, 2015, respectively.

Operating Results for the 2016 Third Quarter

The comparability of Hope Bancorp’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 September 30, 2016, June 30, 2016, and September 30, 2015 include the following pre-tax acquisition accounting adjustments and merger-related expenses associated with past and current acquisitions:

(dollars in thousands) Three Months Ended
  9/30/2016   6/30/2016   9/30/2015
Accretion on purchased non-impaired loans $ 3,111     $ 898     $ 2,496  
Accretion on purchased credit-impaired loans   1,673       1,436       1,723  
Amortization of premium on low income housing tax credits   (54 )            
Amortization of premium on acquired FHLB borrowings   330       97       97  
Accretion of discount on acquired subordinated debt   (190 )     (44 )     (43 )
Amortization of premium on acquired time deposits and savings   2,336       19       24  
Total acquisition accounting adjustments $ 7,206     $ 2,406     $ 4,008  
Merger-related expenses   (11,222 )     (1,533 )     (24 )
Total $ (4,016 )   $ 873     $ 3,984  

Net Interest Income and Net Interest Margin.  Net interest income before provision for loan losses for the 2016 third quarter totaled $103.5 million, an increase of 46% over $71.1 million in the preceding 2016 second quarter and an increase of 50% over $68.8 million in the prior-year third quarter.  The increase in net interest income is primarily attributable to the significantly higher level of interest earning assets following the merger.

The net interest margin (net interest income divided by average interest earning assets) and the impact of acquisition accounting adjustments are summarized in the following table:

  Three Months Ended
  9/30/2016   6/30/2016   change   9/30/2015   change
Net interest margin, excluding the effect of acquisition accounting adjustments 3.48 %   3.53 %   (0.05 )   3.60 %   (0.12 )
Acquisition accounting adjustments 0.29 %   0.14 %   0.15     0.27 %   0.02  
Net interest margin 3.77 %   3.67 %   0.10     3.87 %   (0.10 )

The net interest margin for the 2016 third quarter was 3.77%, up 10 basis points from the preceding second quarter, but down 10 basis points when compared with the year-ago third quarter.  On a core basis, excluding the effect of acquisition accounting adjustments, the net interest margin for the 2016 third quarter declined by 5 basis points from the preceding second quarter and 12 basis points from the third quarter a year ago.

The weighted average yield on loans and the impact of acquisition accounting adjustments are summarized in the following table:

  Three Months Ended
  9/30/2016   6/30/2016   change   9/30/2015   change
Weighted average yield on loans, excluding the effect of acquisition accounting adjustments 4.55 %   4.63 %   (0.08 )   4.62 %   (0.07 )
Acquisition accounting adjustments 0.25 %   0.17 %   0.08     0.32 %   (0.07 )
Weighted average yield on loans 4.80 %   4.80 %       4.94 %   (0.14 )

The weighted average yield on loans for the 2016 third quarter was steady when compared with the preceding 2016 second quarter, but declined 14 basis points from the year-ago third quarter.  On a core basis, excluding the effect of acquisition accounting adjustments, the weighted average yield on loans declined by 8 basis points from the preceding second quarter and 7 basis points from the 2015 third quarter.

The weighted average yield on new loans originated during the 2016 third quarter was 4.03%, compared with 4.28% in the preceding 2016 second quarter and 4.23% in the year-ago third quarter.

The weighted average cost of deposits and the impact of acquisition accounting adjustments are summarized in the following table:

  Three Months Ended
  9/30/2016   6/30/2016   change   9/30/2015   change
Weighted average cost of deposits, excluding the effect of acquisition accounting adjustments 0.64 %   0.64 %       0.57 %   0.07  
Acquisition accounting adjustments (0.08 )%   %   (0.08 )   %   (0.08 )
Weighted average cost of deposits 0.56 %   0.64 %   (0.08 )   0.57 %   (0.01 )

The weighted average cost of deposits for the 2016 third quarter decreased 8 basis points from the preceding second quarter and 1 basis point from the year-ago third quarter.  On a core basis, excluding the effect of premium amortization on time deposits assumed in acquisitions, the weighted average cost of deposits was stable compared with the preceding second quarter and increased 7 basis points when compared with the 2015 third quarter.

Noninterest Income Noninterest income for the 2016 third quarter totaled $14.1 million, compared with $10.7 million in the preceding 2016 second quarter and $11.2 million in the year-ago third quarter.  The Company noted that the increase is largely attributed to the completion of the merger during the quarter, which positively impacted service fees on deposit accounts and other income and fees.  In addition, the Company posted a $948,000 net gain on the sale of securities available-for-sale after restructuring its investment portfolio post-merger, and recorded a $1.5 million gain on sale of other loans from its combined mortgage operations.  Offsetting these increases was a gain on sales of Small Business Administration (“SBA”) loans of just $230,000 in the 2016 third quarter.

In comparison, gains on sales of SBA loans amounted to $3.0 million in the 2016 second quarter and $3.4 million in the 2015 third quarter.  The Company did not recognize any gain on sales of securities available-for-sale in the 2016 second quarter and 2015 third quarter, but recorded $43,000 and $26,000 in gains on sales of other loans in the comparable quarters, respectively.

Noninterest Expense.  Total noninterest expense for the 2016 third quarter, 2016 second quarter and 2015 third quarter amounted to $67.8 million, $40.3 million and $36.8 million, respectively.  The Company noted that the increase in the current quarter is largely attributed to the combination of the two predecessor companies during the quarter and merger-related expenses.  Excluding merger-related expenses of $11.2 million, $1.5 million and $24,000 for the 2016 third quarter, 2016 second quarter and 2015 third quarter, respectively, total noninterest expense would have been $56.6 million, $38.8 million and $36.7 million.  Noninterest expense excluding merger-related expenses is a non-GAAP financial measure.  Management believes total noninterest expense excluding merger-related expenses more accurately reflects the Company’s results of operations in the overall evaluation of its performance.  A reconciliation of the noninterest expense excluding merger-related expenses is included in the accompanying financial tables.

Salaries and employee benefits expense totaled $30.5 million for the 2016 third quarter, $21.8 million for the 2016 second quarter and $21.5 million for the year-ago third quarter. The total number of FTEs for the combined company as of September 30, 2016 was 1,400.  At June 30, 2016, the total number of FTEs was 918 for former BBCN and 549 for former Wilshire, aggregating to 1,467.  The total number of FTEs a year earlier at September 30, 2015 was 941 for former BBCN.

As previously reported, the Company announced its branch optimization plan that includes a first phase of branch consolidations to be completed by year-end 2016.  These branch consolidations are expected to result in costs savings of approximately $11 million pre-tax on an annual basis beginning in 2017.  During the 2016 third quarter, the Company recorded $1.9 million in one-time charges pre-tax related to the branch consolidations.

Income Tax Provision.  The effective tax rate for the 2016 third quarter was 39.7%, compared with 41.8% for the preceding 2016 second quarter and 41.1% for the 2015 third quarter.

Balance Sheet Summary

Loans receivable totaled $10.56 billion at September 30, 2016, reflecting a 60% increase over $6.58 billion at June 30, 2016,  and a 77% increase over $5.97 billion at September 30, 2015.

Total new loan originations during the 2016 third quarter amounted to $559.5 million, including warehouse lines of credit of $99.9 million and SBA loan originations of $80.7 million.  On a pro forma basis including the former Wilshire’s loan production of $57.9 million during July 2016 that is not included in the combined company’s originations, aggregate new loan originations would have amounted to $617.4 million, including SBA loan originations of $89.9 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.  Production of SBA 7(a) loans totaled $50.2 million for the third quarter of 2016, compared with $56.7 million for the preceding 2016 second quarter and $46.1 million for the 2015 third quarter.  During the 2016 third quarter, the Company sold just $2.4 million of its SBA loans held for sale, compared with $39.6 million in the preceding second quarter and $42.4 million in the year-ago third quarter.  The decision to retain or sell SBA loans is made on a quarter-to-quarter basis, depending on prevailing pricing in the secondary market and the Company’s liquidity needs.

Aggregate pay offs and pay downs for the combined company in the 2016 third quarter amounted to $357.0 million, compared with $235.6 million for the preceding 2016 second quarter and $267.1 million for the year-ago third quarter.

Total deposits increased to $10.7 billion at September 30, 2016, up 61% over $6.64 billion at June 30, 2016 and up 78% over $6.03 billion at September 30, 2015.

Credit Quality

The provision for loan losses for the 2016 third quarter was $6.5 million, compared with $1.2 million for the preceding 2016 second quarter and $600,000 for the prior-year third 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 September 30, 2016, June 30, 2016 and September 30, 2015 is as follows:

(dollars in thousands) 9/30/2016   6/30/2016   9/30/2015
Legacy loans (1) $ 66,986   $ 63,616   $ 57,200
Purchased non-impaired loans (2)   938     860     1,418
Purchased credit-impaired loans (2)   12,052     11,949     12,492
Total ALLL $ 79,976   $ 76,425   $ 71,110
                 
Loans receivable $ 10,561,197   $ 6,584,237   $ 5,972,724
ALLL coverage ratio   0.76 %     1.16 %     1.19 %

(1) Legacy loans include loans originated by the Bank’s predecessor bank, loans originated by Bank of Hope and loans that were acquired and that have been refinanced as new loans.
(2) Purchased loans were marked to fair value at acquisition date, and the allowance for loan losses reflect provisions for credit deterioration since the acquisition date.

Following are the components of criticized loan balances as of September 30, 2016, June 30, 2016 and September 30, 2015:

(dollars in thousands) 9/30/2016   6/30/2016   9/30/2015
Special Mention (1) $ 308,893   $ 100,370   $ 141,655
Classified (1)   259,268     198,857     178,720
Criticized $ 568,161   $ 299,227   $ 320,375

(1) Balances include purchased loans which were marked to fair value on the date of acquisition.

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 September 30, 2016 totaled $40.6 million, or 0.38% of loans receivable.   This compares with nonaccrual loans of $42.4 million, or 0.64% of loans receivable, at June 30, 2016 and $32.4 million, or 0.54% of loans receivable, at September 30, 2015.  Accruing restructured loans declined to $48.7 million at September 30, 2016, from $50.8 million at June 30, 2016 and $54.3 million at September 30, 2015.  Total nonperforming loans at September 30, 2016 amounted to $89.5 million, or 0.85% of loans receivable.  This compares with total nonperforming loans of $93.4 million, or 1.42% of loans receivable, at June 30, 2016 and $86.7 million, or 1.45% of loans receivable, at September 30, 2015.

Nonperforming assets, including nonperforming loans and other real estate owned, increased to $117.0 million at September 30, 2016 from $109.8 million at June 30, 2016 and $108.1 million at September 30, 2015.  As a percentage of total assets, nonperforming assets declined to 0.87% at September 30, 2016 from 1.32% at June 30, 2016 and 1.43% at September 30, 2015, reflecting the merger completion.

For the 2016 third quarter, the Company recorded net charge offs of $2.9 million, or 0.13% of average loans receivable on an annualized basis.  This compares with net charge offs of $1.6 million, or 0.10% of average loans receivable on an annualized basis for the 2016 second quarter and net recoveries of $392,000, or 0.03% of average loans receivable on an annualized basis, for the 2015 third quarter.

The allowance for loan losses at September 30, 2016 was $80.0 million, or 0.76% of loans receivable (excluding loans held for sale), compared with $76.4 million, or 1.16%, at June 30, 2016 and $71.1 million, or 1.19%, at September 30, 2015.   The coverage ratio of the allowance for loan losses to nonperforming loans (excluding purchased credit-impaired loans) was 89.36% at September 30, 2016, versus 81.84% at June 30, 2016 and 82.00% at September 30, 2015.

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 million at September 30, 2016, compared with $136.6 million at June 30, 2016 and $119.5 million at September 30, 2015.

Capital

At September 30, 2016, the Company continued to exceed all regulatory capital requirements to be classified as a “well-capitalized” institution, as summarized in the following table:

  9/30/2016   6/30/2016   9/30/2015   Minimum Guideline
for “Well-Capitalized”
Institution
Common Equity Tier 1 Capital   11.92 %     11.66 %     12.34 %     6.50 %
Leverage Ratio   12.97 %     11.14 %     11.76 %     5.00 %
Tier 1 Risk-based Ratio   12.75 %     12.22 %     12.95 %     8.00 %
Total Risk-based Ratio   13.47 %     13.28 %     14.05 %     10.00 %

Tangible common equity per share and as a percentage of tangible assets are summarized in the following table:

  9/30/2016   6/30/2016   9/30/2015
Tangible common equity per share (1) $ 10.12     $ 10.85     $ 10.32  
Tangible common equity to tangible assets (1)   10.50 %     10.50 %     10.99 %

(1) Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and net other intangible assets divided by total assets less goodwill and net other intangible assets.  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.  The accompanying financial information includes a reconciliation of the ratio of tangible common equity to tangible assets with stockholders’ equity and total assets.

Investor Conference Call

The Company will host an investor conference call on Wednesday, October 19, 2016 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for the 2016 third quarter.  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.”  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 at www.ir-hopebancorp.com.   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 October 26, 2016, replay access code 10093351.

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 $13.5 billion in total assets as of September 30, 2016. Formed through the merger of BBCN Bank and Wilshire Bank, the top two commercial lenders in the market, Bank of Hope is headquartered in Los Angeles and serves a multi-ethnic population of customers across the nation. Bank of Hope operates 85 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, and Portland, Oregon; a commercial loan production office in Fremont, California; residential mortgage loan production offices in 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

This press release may contain forward-looking statements. These statements are based on current expectations, estimates, forecasts and projections and management assumptions about the future performance of the combined company, as well as the businesses and markets in which the combined company operates and is expected to operate. These statements constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, involve certain risks, uncertainties and assumptions that are difficult to assess and  are not guarantees of future performance and.  Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers should carefully review the risk factors and the information that could materially affect the Company’s financial results and business, described in documents the Company files from time to time with the Securities and Exchange Commission, including its quarterly reports on Form 10-Q and Annual Reports on Form 10-K, and particularly the discussions of business considerations and certain factors that may affect results of operations and stock price set forth therein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.

(tables follow)

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share data)
 
Assets 9/30/2016   6/30/2016   % change   12/31/2015   % change   9/30/2015   % change
Cash and due from banks $ 443,903     $ 286,173     55 %   $ 298,389     49 %   $ 278,375     59 %
Securities available for sale, at fair value 1,558,719     1,099,944     42 %   1,010,556     54 %   972,962     60 %
Federal Home Loan Bank (“FHLB”), Federal Reserve Bank (“FRB”) stock and other investments 69,119     63,429     9 %   66,859     3 %   63,674     9 %
Loans held for sale, at the lower of cost or fair value 58,186     14,323     306 %   8,273     603 %   25,103     132 %
Loans receivable 10,561,197     6,584,237     60 %   6,248,341     69 %   5,972,724     77 %
Allowance for loan losses (79,976 )   (76,425 )   (5 )%   (76,408 )   (5 )%   (71,110 )   (12 )%
Net loans receivable 10,481,221     6,507,812     61 %   6,171,933     70 %   5,901,614     78 %
Accrued interest receivable 24,165     15,787     53 %   15,195     59 %   13,981     73 %
Premises and equipment, net 53,966     37,663     43 %   34,575     56 %   34,798     55 %
Bank owned life insurance 73,290     47,562     54 %   47,018     56 %   46,741     57 %
Goodwill 463,964     105,401     340 %   105,401     340 %   105,401     340 %
Servicing assets 26,529     12,193     118 %   12,000     121 %   11,505     131 %
Other intangible assets, net 19,968     2,395     734 %   2,820     608 %   3,086     547 %
Other assets 234,534     144,144     63 %   139,629     68 %   125,762     86 %
Total assets $ 13,507,564     $ 8,336,826     62 %   $ 7,912,648     71 %   $ 7,583,002     78 %
                                   
Liabilities                                  
Deposits $ 10,702,505     $ 6,637,522     61 %   $ 6,340,976     69 %   $ 6,028,865     78 %
Borrowings from FHLB 754,739     610,398     24 %   530,591     42 %   530,689     42 %
Subordinated debentures 99,548     42,415     135 %   42,327     135 %   42,284     135 %
Accrued interest payable 9,708     7,164     36 %   6,007     62 %   6,231     56 %
Other liabilities 89,863     67,587     33 %   54,652     64 %   45,364     98 %
Total liabilities 11,656,363     7,365,086     58 %   6,974,553     67 %   6,653,433     75 %
                                   
Stockholders’ Equity                                  
Common stock, $0.001 par value; authorized, 150,000,000 shares at September 30, 2016, June 30, 2016, December 31, 2015, and September 30, 2015; issued and outstanding, 135,109,641, 79,606,821, 79,566,356, and 79,553,460 shares at September 30, 2016, June 30, 2016, December 31, 2015, and September 30, 2015, respectively. $ 853,018     $ 80     1,066,173 %   $ 80     1,066,173 %   $ 80     1,066,173 %
Capital surplus 544,662     541,688     1 %   541,596     1 %   541,349     1 %
Retained earnings 445,104     418,998     6 %   398,251     12 %   384,133     16 %
Accumulated other comprehensive income (loss), net 8,417     10,974     (23 )%   (1,832 )   559 %   4,007     110 %
Total stockholders’ equity 1,851,201     971,740     91 %   938,095     97 %   929,569     99 %
Total liabilities and stockholders’ equity $ 13,507,564     $ 8,336,826     62 %   $ 7,912,648     71 %   $ 7,583,002     78 %
                           


Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
 
  Three Months Ended   Nine Months Ended
  9/30/2016   6/30/2016   % change   9/30/2015   % change   9/30/2016   9/30/2015   % change
Interest income:                              
Interest and fees on loans $ 112,132     $ 77,086     45 %   $ 73,650     52 %   $ 266,336     $ 214,537     24 %
Interest on securities 6,645     5,729     16 %   4,658     43 %   18,051     13,067     38 %
Interest on federal funds sold and other investments 775     719     8 %   751     3 %   2,160     3,084     (30 )%
Total interest income 119,552     83,534     43 %   79,059     51 %   286,547     230,688     24 %
                                                         
Interest expense:                                                        
Interest on deposits 13,017     10,352     26 %   8,390     55 %   33,276     24,115     38 %
Interest on other borrowings 3,061     2,118     45 %   1,908     60 %   7,125     5,298     34 %
Total interest expense 16,078     12,470     29 %   10,298     56 %   40,401     29,413     37 %
                                                         
Net interest income before provision for loan losses 103,474     71,064     46 %   68,761     50 %   246,146     201,275     22 %
Provision for loan losses 6,500     1,200     442 %   600     983 %   8,200     3,100     165 %
Net interest income after provision for loan losses 96,974     69,864     39 %   68,161     42 %   237,946     198,175     20 %
                                                         
Noninterest income:                                                        
Service fees on deposit accounts 4,778     2,902     65 %   3,170     51 %   10,363     9,261     12 %
Net gains on sales of SBA loans 230     3,035     (92 )%   3,390     (93 )%   5,090     9,553     (47 )%
Net gains on sales of other loans 1,476     43     3,333 %   26     5,577 %   1,519     253     500 %
Net gains on sales of securities available for sale 948         100 %       100 %   948     424     124 %
Other income and fees 6,714     4,727     42 %   4,597     46 %   15,707     13,223     19 %
Total noninterest income 14,146     10,707     32 %   11,183     26 %   33,627     32,714     3 %
                                                         
Noninterest expense:                                                        
Salaries and employee benefits 30,456     21,757     40 %   21,457     42 %   73,782     63,570     16 %
Occupancy 6,889     4,920     40 %   4,941     39 %   16,626     14,443     15 %
Furniture and equipment 3,297     2,337     41 %   2,329     42 %   7,921     6,915     15 %
Advertising and marketing 2,306     1,402     64 %   1,309     76 %   4,845     4,184     16 %
Data processing and communications 3,199     2,129     50 %   2,192     46 %   7,499     7,004     7 %
Professional fees 1,898     1,273     49 %   1,289     47 %   4,255     3,966     7 %
FDIC assessment 1,564     1,095     43 %   1,027     52 %   3,697     3,048     21 %
Credit related expenses 810     911     (11 )%   75     980 %   2,142     1,600     34 %
Other real estate owned (“OREO”) expense, net (423 )   133     (418 )%   (721 )   41 %   1,138     1,677     (32 )%
Merger-related expenses 11,222     1,533     632 %   24     46,658 %   13,962     102     13,588 %
Other 6,628     2,858     132 %   2,833     134 %   12,377     7,937     56 %
Total noninterest expense 67,846     40,348     68 %   36,755     85 %   148,244     114,446     30 %
Income before income taxes 43,274     40,223     8 %   42,589     2 %   123,329     116,443     6 %
Income tax provision 17,169     16,833     2 %   17,497     (2 )%   50,212     47,053     7 %
Net income $ 26,105     $ 23,390     12 %   $ 25,092     4 %   $ 73,117     $ 69,390     5 %
                               
Earnings Per Common Share:                              
Basic $ 0.22     $ 0.29         $ 0.32         $ 0.80     $ 0.87      
Diluted $ 0.22     $ 0.29         $ 0.32         $ 0.80     $ 0.87      
                               
Average Shares Outstanding:                              
Basic 116,622,920     79,604,673         79,552,873         91,940,070     79,545,681      
Diluted 116,653,166     79,634,762         79,584,536         91,970,163     79,606,224      
                                         


Hope Bancorp, Inc.
Selected Financial Data
Unaudited
 
  For the Three Months Ended
(Annualized)
  For the Nine Months Ended
(Annualized)
Profitability measures: 9/30/2016   6/30/2016   9/30/2015   9/30/2016   9/30/2015
ROA 0.89 %   1.15 %   1.35 %   1.05 %   1.27 %
ROE 6.60 %   9.67 %   10.96 %   8.35 %   10.23 %
Return on average tangible equity 1 8.61 %   10.88 %   12.44 %   10.04 %   11.63 %
Net interest margin 3.77 %   3.67 %   3.87 %   3.76 %   3.88 %
Efficiency ratio 57.68 %   49.34 %   45.98 %   52.99 %   48.91 %
                   
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)
 
  Three Months Ended   Three Months Ended   Three Months Ended
  9/30/2016   6/30/2016   9/30/2015
      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 $ 9,292,814     $ 112,132     4.80 %   $ 6,457,883     $ 77,086     4.80 %   $ 5,918,005     $ 73,650     4.94 %
Securities available for sale 1,406,919     6,645     1.89 %   1,089,080     5,729     2.10 %   877,054     4,658     2.12 %
FRB and FHLB stock and other investments 237,981     775     1.30 %   237,872     719     1.20 %   265,044     751     1.11 %
Total interest earning assets $ 10,937,714     $ 119,552     4.35 %   $ 7,784,835     $ 83,534     4.31 %   $ 7,060,103     $ 79,059     4.44 %
                                                         
INTEREST BEARING LIABILITIES:                                                        
Deposits:                                                        
Demand, interest bearing $ 2,924,340     $ 5,932     0.81 %   $ 2,030,272     $ 4,147     0.82 %   $ 1,695,709     $ 3,141     0.73 %
Savings 268,424     311     0.46 %   178,249     285     0.64 %   196,090     419     0.85 %
Time deposits:                                                        
$100,000 or more 2,687,108     4,913     0.73 %   1,890,891     4,240     0.90 %   1,677,861     3,450     0.82 %
Other 913,292     1,861     0.81 %   745,761     1,680     0.91 %   677,338     1,380     0.81 %
Total time deposits 3,600,400     6,774     0.75 %   2,636,652     5,920     0.90 %   2,355,199     4,830     0.81 %
Total interest bearing deposits 6,793,164     13,017     0.76 %   4,845,173     10,352     0.86 %   4,246,998     8,390     0.78 %
FHLB advances 698,081     2,161     1.23 %   564,637     1,686     1.20 %   532,926     1,514     1.13 %
Other borrowings 78,828     900     4.47 %   40,861     432     4.18 %   40,716     394     3.79 %
Total interest bearing liabilities 7,570,073     $ 16,078     0.84 %   5,450,671     $ 12,470     0.92 %   4,820,640     $ 10,298     0.85 %
Noninterest bearing demand deposits 2,535,015               1,671,986               1,630,633            
Total funding liabilities/cost of funds $ 10,105,088         0.63 %   $ 7,122,657         0.70 %   $ 6,451,273         0.63 %
Net interest income/net interest spread     $ 103,474     3.51 %       $ 71,064     3.39 %       $ 68,761     3.60 %
Net interest margin         3.77 %           3.67 %           3.87 %
Net interest margin, excluding effect of nonaccrual loan income (expense)         3.77 %           3.67 %           3.87 %
Net interest margin, excluding effect of nonaccrual loan income (expense) and prepayment fee income         3.73 %           3.64 %           3.85 %
Nonaccrual loan income reversed     $ (147 )             $ (21 )             $        
Prepayment fee income received     1,015               528               333        
Net     $ 868               $ 507               $ 333        
                                         
Cost of deposits:                                        
Noninterest bearing demand deposits $ 2,535,015     $           $ 1,671,986     $           $ 1,630,633     $        
Interest bearing deposits 6,793,164     13,017     0.76 %   4,845,173     10,352     0.86 %   4,246,998     8,390     0.78 %
Total deposits $ 9,328,179     $ 13,017     0.56 %   $ 6,517,159     $ 10,352     0.64 %   $ 5,877,631     $ 8,390     0.57 %
                                                                 


Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
 
  Nine Months Ended   Nine Months Ended
  9/30/2016   9/30/2015
      Interest   Annualized       Interest   Annualized
  Average   Income/   Average   Average   Income/   Average
  Balance   Expense   Yield/Cost   Balance   Expense   Yield/Cost
INTEREST EARNING ASSETS:                      
Loans receivable, including loans held for sale $ 7,347,740     $ 266,336     4.84 %   $ 5,760,376     $ 214,537     4.98 %
Securities available for sale 1,171,816     18,051     2.05 %   824,088     13,067     2.11 %
FRB and FHLB stock and other investments 230,993     2,160     1.25 %   343,686     3,084     1.18 %
Total interest earning assets $ 8,750,549     $ 286,547     5.44 %   $ 6,928,150     $ 230,688     4.45 %
                                   
INTEREST BEARING LIABILITIES:                                  
Deposits:                                  
Demand, interest bearing $ 2,310,000     $ 14,083     0.81 %   $ 1,643,539     $ 8,779     0.71 %
Savings 211,255     962     0.61 %   195,072     1,260     0.86 %
Time deposits:                                  
$100,000 or more 2,130,243     13,210     0.83 %   1,713,631     10,340     0.81 %
Other 786,625     5,021     0.85 %   637,916     3,736     0.78 %
Total time deposits 2,916,868     18,231     0.83 %   2,351,547     14,076     0.80 %
Total interest bearing deposits 5,438,123     33,276     0.82 %   4,190,158     24,115     0.77 %
FHLB advances 598,672     5,370     1.20 %   498,795     4,138     1.11 %
Other borrowings 53,593     1,755     4.30 %   40,670     1,160     3.76 %
Total interest bearing liabilities 6,090,388     $ 40,401     0.84 %   4,729,623     $ 29,413     0.83 %
Noninterest bearing demand deposits 1,947,673               1,599,554            
Total funding liabilities/cost of funds $ 8,038,061         0.63 %   $ 6,329,177         0.62 %
Net interest income/net interest spread     $ 246,146     4.59 %       $ 201,275     3.62 %
Net interest margin         3.76 %           3.88 %
Net interest margin, excluding effect of nonaccrual loan income (expense)         3.76 %           3.88 %
Net interest margin, excluding effect of nonaccrual loan income (expense) and prepayment fee income         3.73 %           3.86 %
Nonaccrual loan income reversed     $ (290 )             $ (45 )      
Prepayment fee income received     2,174               1,300        
Net     $ 1,884               $ 1,255        
                           
Cost of deposits:                          
Noninterest bearing demand deposits $ 1,947,673     $           $ 1,599,554     $        
Interest bearing deposits 5,438,123     33,276     0.82 %   4,190,158     24,115     0.77 %
Total deposits $ 7,385,796     $ 33,276     0.60 %   $ 5,789,712     $ 24,115     0.56 %
                                           


Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
 
   Three Months Ended   Nine Months Ended
AVERAGE BALANCES: 9/30/2016   6/30/2016   % change   9/30/2015   % change   9/30/2016   9/30/2015   % change
Loans receivable, including loans held for sale $ 9,292,814     $ 6,457,883     44 %   $ 5,918,005     57 %   $ 7,347,740     $ 5,760,376     28 %
Investments 1,644,900     1,326,952     24 %   1,142,098     44 %   1,402,809     1,167,774     20 %
Interest earning assets 10,937,714     7,784,835     41 %   7,060,103     55 %   8,750,549     6,928,150     26 %
Total assets 11,775,431     8,157,358     44 %   7,424,598     59 %   9,278,722     7,284,661     27 %
                                                 
Interest bearing deposits 6,793,164     4,845,173     40 %   4,246,998     60 %   5,438,123     4,190,158     30 %
Interest bearing liabilities 7,570,073     5,450,671     39 %   4,820,640     57 %   6,090,388     4,729,623     29 %
Noninterest bearing demand deposits 2,535,015     1,671,986     52 %   1,630,633     55 %   1,947,673     1,599,554     22 %
Stockholders’ equity 1,582,756     967,919     64 %   915,702     73 %   1,166,959     904,166     29 %
Net interest earning assets 3,367,641     2,334,164     44 %   2,239,463     50 %   2,660,161     2,198,527     21 %
                               
LOAN PORTFOLIO COMPOSITION: 9/30/2016   6/30/2016   % change   12/31/2015   % change   9/30/2015   % change    
Commercial loans $ 2,015,870     $ 1,111,219     81 %   $ 1,079,316     87 %   $ 1,060,618     90 %    
Real estate loans 8,358,990     5,331,015     57 %   5,069,482     65 %   4,827,281     73 %    
Consumer and other loans 188,532     145,182     30 %   102,573     84 %   88,092     114 %    
Loans outstanding 10,563,392     6,587,416     60 %   6,251,371     69 %   5,975,991     77 %    
Unamortized deferred loan fees - net of costs (2,195 )   (3,179 )   31 %   (3,030 )   28 %   (3,267 )   33 %    
Loans, net of deferred loan fees and costs 10,561,197     6,584,237     60 %   6,248,341     69 %   5,972,724     77 %    
Allowance for loan losses (79,976 )   (76,425 )   (5 )%   (76,408 )   (5 )%   (71,110 )   (12 )%    
Loan receivable, net $ 10,481,221     $ 6,507,812     61 %   $ 6,171,933     70 %   $ 5,901,614     78 %    
                               
REAL ESTATE LOANS BY PROPERTY TYPE: 9/30/2016   6/30/2016   % change   12/31/2015   % change   9/30/2015   % change    
Retail buildings $ 2,136,128
    $ 1,365,808     56
%   $ 1,326,516     61
%   $ 1,236,686     73
%    
Hotels/motels 1,599,985     1,155,928     38 %   1,061,111     51 %   1,031,931     55 %    
Gas stations/car washes 962,643     704,334     37 %   667,496     44 %   648,759     48 %    
Mixed-use facilities 546,177     400,559     36 %   369,425     48 %   349,097     56 %    
Warehouses 912,818     543,270     68 %   529,255     72 %   500,747     82 %    
Multifamily 426,257     260,708     63 %   245,532     74 %   222,047     92 %    
Other 1,774,982
    900,408     97 %   870,147     104
%   838,014     112
%    
Total $ 8,358,990     $ 5,331,015     57 %   $ 5,069,482     65 %   $ 4,827,281     73 %    
                               
DEPOSIT COMPOSITION 9/30/2016   6/30/2016   % change   12/31/2015   % change   9/30/2015   % change    
Noninterest bearing demand deposits $ 2,903,658     $ 1,717,045     69 %   $ 1,694,427     71 %   $ 1,631,672     78 %    
Money market and other 3,318,728     2,176,978     52 %   1,983,250     67 %   1,783,760     86 %    
Saving deposits 304,719     173,549     76 %   187,498     63 %   193,895     57 %    
Time deposits of $100,000 or more 3,077,629     1,828,649     68 %   1,772,984     74 %   1,716,267     79 %    
Other time deposits 1,097,771     741,301     48 %   702,817     56 %   703,271     56 %    
Total deposit balances $ 10,702,505     $ 6,637,522     61 %   $ 6,340,976     69 %   $ 6,028,865     78 %    
                               
DEPOSIT COMPOSITION (%) 9/30/2016   6/30/2016       12/31/2015       9/30/2015        
Noninterest bearing demand deposits 27.1 %   25.9 %       26.7 %       27.1 %        
Money market and other 31.0 %   32.8 %       31.3 %       29.6 %        
Saving deposits 2.8 %   2.6 %       3.0 %       3.2 %        
Time deposits of $100,000 or more 28.8 %   27.6 %       28.0 %       28.5 %        
Other time deposits 10.3 %   11.1 %       11.0 %       11.6 %        
Total deposit balances 100.0 %   100.0 %       100.0 %       100.0 %        
                                       


Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
 
CAPITAL RATIOS: 9/30/2016   6/30/2016   12/31/2015   9/30/2015            
Total stockholders’ equity $ 1,851,201     $ 971,740     $ 938,095     $ 929,569              
Common Equity Tier 1 ratio 11.92 %   11.66 %   12.08 %   12.34 %            
Tier 1 risk-based capital ratio 12.75 %   12.22 %   12.67 %   12.95 %            
Total risk-based capital ratio 13.47 %   13.28 %   13.80 %   14.05 %            
Tier 1 leverage ratio 12.97 %   11.14 %   11.53 %   11.76 %            
Total risk weighted assets $ 11,473,003     $ 7,329,696     $ 6,905,154     $ 6,641,660              
Book value per common share $ 13.70     $ 12.21     $ 11.79     $ 11.68              
Tangible common equity to tangible assets 2 10.50 %   10.50 %   10.63 %   10.99 %            
Tangible common equity per share 2 $ 10.12     $ 10.85     $ 10.43     $ 10.32              
                           
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   Nine Months Ended        
NONINTEREST EXPENSE BEFORE MERGER-RELATED COSTS 9/30/2016   6/30/2016   9/30/2015   9/30/2016   9/30/2015        
Total noninterest expense $ 67,846     $ 40,348     $ 36,755     $ 148,244     $ 114,446          
Less: merger-related costs (11,222 )   (1,533 )   (24 )   (13,962 )   (102 )        
Total noninterest expense, excluding merger-related expense $ 56,624     $ 38,815     $ 36,731     $ 134,282     $ 114,344          
                           
  9/30/2016   6/30/2016   12/31/2015   9/30/2015            
Total stockholders’ equity $ 1,851,201     $ 971,740     $ 938,095     $ 929,569              
Less:  Goodwill and core deposit intangible assets, net (483,931 )   (107,796 )   (108,221 )   (108,487 )            
Tangible common equity $ 1,367,270     $ 863,944     $ 829,874     $ 821,082              
                           
Total assets $ 13,507,564     $ 8,336,826     $ 7,912,648     $ 7,583,002              
Less:  Goodwill and core deposit intangible assets, net (483,931 )   (107,796 )   (108,221 )   (108,487 )            
Tangible assets $ 13,023,633     $ 8,229,030     $ 7,804,427     $ 7,474,515              
                           
Common shares outstanding 135,109,641     79,606,821     79,566,356     79,553,460              
                           
Tangible common equity to tangible assets 10.50 %   10.50 %   10.63 %   10.99 %            
Tangible common equity per share $ 10.12     $ 10.85     $ 10.43     $ 10.32              
                           
 
 
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
                           
   Three Months Ended   Nine Months Ended
ALLOWANCE FOR LOAN LOSSES: 9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015   9/30/2016   9/30/2015
Balance at beginning of period $ 76,425     $ 76,856     $ 76,408     $ 71,110     $ 70,118     $ 76,408     $ 67,758  
Provision for loan losses 6,500     1,200     500     4,900     600     8,200     3,100  
Recoveries 1,010     664     769     955     2,171     2,443     4,607  
Charge offs (3,959 )   (2,295 )   (821 )   (557 )   (1,779 )   (7,075 )   (4,355 )
Balance at end of period $ 79,976     $ 76,425     $ 76,856     $ 76,408     $ 71,110     $ 79,976     $ 71,110  
Net annualized charge offs (recoveries) / average gross loans 0.13 %   0.10 %   %   (0.03 )%   (0.03 )%   0.13 %   (0.01 )%
                           
  Three Months Ended   Nine Months Ended
NET CHARGED OFF (RECOVERED) LOANS  BY TYPE: 9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015   9/30/2016   9/30/2015
Real estate loans $ (248 )   $ 18     $ (390 )   $ (254 )   $ (505 )   $ (620 )   $ (952 )
Commercial loans 2,663     1,649     379     (127 )   (25 )   4,691     646  
Consumer loans 159     (36 )   63     (17 )   138     186     54  
Charge offs (recoveries) excluding Acquired Credit Impaired Loans 2,574     1,631     52     (398 )   (392 )   4,257     (252 )
Charge offs on Acquired Credit Impaired Loans 375                          
Total net charge offs (recoveries) $ 2,949     $ 1,631     $ 52     $ (398 )   $ (392 )   $ 4,257     $ (252 )
                                                       


Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
 
NONPERFORMING ASSETS: 9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Delinquent loans on nonaccrual status 3 $ 40,602     $ 42,398     $ 43,548     $ 40,801     $ 32,446  
Delinquent loans 90 days or more on accrual status 4 192     147     45     375      
Accruing restructured loans 48,701     50,837     52,760     47,984     54,274  
Total nonperforming loans 89,495     93,382     96,353     89,160     86,720  
Other real estate owned 27,457     16,392     19,794     21,035     21,350  
Total nonperforming assets $ 116,952     $ 109,774     $ 116,147     $ 110,195     $ 108,070  
Nonperforming assets/total assets 0.87 %   1.32 %   1.44 %   1.39 %   1.43 %
Nonperforming assets/loans receivable & OREO 1.10 %   1.66 %   1.82 %   1.76 %   1.80 %
Nonperforming assets/total capital 6.32 %   11.30 %   12.07 %   11.75 %   11.63 %
Nonperforming loans/loans receivable 0.85 %   1.42 %   1.51 %   1.43 %   1.45 %
Nonaccrual loans/loans receivable 0.38 %   0.64 %   0.68 %   0.65 %   0.54 %
Allowance for loan losses/loans receivable 0.76 %   1.16 %   1.21 %   1.22 %   1.19 %
Allowance for loan losses/nonaccrual loans 196.98 %   180.26 %   176.49 %   187.27 %   219.16 %
Allowance for loan losses/nonperforming loans 89.36 %   81.84 %   79.77 %   85.70 %   82.00 %
Allowance for loan losses/nonperforming assets 68.38 %   69.62 %   66.17 %   69.34 %   65.80 %
                   
3  Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $14.1 million, $15.5 million, $15.4 million, $18.7 million, and $19.9 million at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively.
4  Excludes Acquired Credit Impaired Loans totaling $16.4 million, $13.8 million, $13.1 million, $12.2 million, and $18.5 million at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively.
                   
BREAKDOWN OF ACCRUING RESTRUCTURED LOANS BY TYPE: 9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Retail buildings $ 5,876     $ 4,565     $ 4,598     $ 5,593     $ 5,631  
Hotels/motels 1,315     1,324     1,336     1,342     7,632  
Gas stations/car washes 829     835     840     845      
Mixed-use facilities 895     1,111     1,117     1,124     775  
Warehouses 5,449     5,512     5,575     5,635     5,698  
Other 5 34,337     37,490     39,294     33,445     34,538  
Total $ 48,701     $ 50,837     $ 52,760     $ 47,984     $ 54,274  
                   
Includes commercial business and other loans                  
                   
                   
DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE: 9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Legacy                  
30 - 59 days $ 3,580     $ 2,920     $ 4,488     $ 3,104     $ 4,380  
60 - 89 days 1,100     1,427     1,510     1,678     2,874  
Total delinquent loans less than 90 days past due - legacy $ 4,680     $ 4,347     $ 5,998     $ 4,782     $ 7,254  
                   
Acquired                  
30 - 59 days $ 3,451     $ 2,735     $ 1,456     $ 3,170     $ 2,382  
60 - 89 days 1,168     345     47     39     147  
Total delinquent loans less than 90 days past due - acquired $ 4,619     $ 3,080     $ 1,503     $ 3,209     $ 2,529  
                   
Total delinquent loans less than 90 days past due $ 9,299     $ 7,427     $ 7,501     $ 7,991     $ 9,783  
                   


Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
 
DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE BY TYPE: 9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Legacy                  
Real estate loans $ 2,678     $ 2,047     $ 1,624     $ 2,179     $ 2,467  
Commercial loans 1,866     2,215     1,441     1,676     4,737  
Consumer loans 136     85     2,933     927     50  
Total delinquent loans less than 90 days past due - legacy $ 4,680     $ 4,347     $ 5,998     $ 4,782     $ 7,254  
                   
Acquired                  
Real estate loans $ 3,761     $ 2,557     $ 1,189     $ 2,572     $ 2,335  
Commercial loans 858     211     314     349     164  
Consumer loans     312         288     30  
Total delinquent loans less than 90 days past due - acquired $ 4,619     $ 3,080     $ 1,503     $ 3,209     $ 2,529  
                   
Total delinquent loans less than 90 days past due $ 9,299     $ 7,427     $ 7,501     $ 7,991     $ 9,783  
                   
                   
NONACCRUAL LOANS  BY TYPE: 9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Real estate loans $ 24,055     $ 25,306     $ 26,123     $ 24,375     $ 23,361  
Commercial loans 15,742     16,270     16,842     15,600     7,995  
Consumer loans 805     822     583     826     1,090  
Total nonaccrual loans $ 40,602     $ 42,398     $ 43,548     $ 40,801     $ 32,446  
                   
CRITICIZED LOANS: 9/30/2016   6/30/2016   3/31/2016   12/31/2015   9/30/2015
Legacy                  
Special mention $ 168,289     $ 80,923     $ 87,025     $ 85,945     $ 116,267  
Substandard 124,938     128,885     129,314     126,880     97,225  
Doubtful 441     108     133     20     184  
Loss                  
Total criticized loans - legacy $ 293,668     $ 209,916     $ 216,472     $ 212,845     $ 213,676  
                   
Acquired                  
Special mention $ 140,604     $ 19,447     $ 17,017     $ 18,241     $ 25,388  
Substandard 131,398     67,261     71,954     74,482     79,774  
Doubtful 2,624     2,603     1,997     2,194     1,537  
Loss (133 )                
Total criticized loans - acquired $ 274,493     $ 89,311     $ 90,968     $ 94,917     $ 106,699  
                   
Total criticized loans $ 568,161     $ 299,227     $ 307,440     $ 307,762     $ 320,375  
                                       

 

Contact:
Angie Yang
SVP, Director of Investor Relations &
Corporate Communications
213-251-2219
angie.yang@bankofhope.com

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