Hope Bancorp Reports 2016 Third Quarter Financial Results

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

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	%

¹Average 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

²Tangible 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

⁵Includes 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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Hope Bancorp Reports 2016 Third Quarter Financial Results

Distribution channels: Banking, Finance & Investment Industry, Retail

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