HOPE BANCORP INC
For the period ended Mar 31, 2024. Filed May 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 7, 2024
HOPE$13.24-0.9%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
| (Unaudited) | ||
|---|---|---|
| March 31,2024 | December 31,2023 | |
| ASSETS · (Dollars in thousands, except share data) | ||
| Cash and cash equivalents: | ||
| Cash and due from banks | $160,027 | $172,813 |
| Interest earning cash in other banks | 1,025,269 | 1,756,154 |
| Total cash and cash equivalents | 1,185,296 | 1,928,967 |
| Investment securities available for sale (“AFS”), at fair value | 2,016,389 | 2,145,059 |
| Investment securities held to maturity (“HTM”), at amortized cost; fair value of $242,717 and $250,518 at March 31, 2024 and December 31, 2023, respectively | 261,601 | 263,912 |
| Equity investments | 43,925 | 43,750 |
| Loans held for sale, at lower of cost or fair value | 2,763 | 3,408 |
| Loans receivable, net of allowance for credit losses of $158,758 and $158,694 at March 31, 2024 and December 31, 2023, respectively | 13,560,420 | 13,694,925 |
| Other real estate owned (“OREO”), net | — | 63 |
| Federal Home Loan Bank (“FHLB”) stock, at cost | 17,250 | 17,250 |
| Premises and equipment, net | 50,541 | 50,611 |
| Accrued interest receivable | 60,316 | 61,720 |
| Deferred tax assets, net | 138,350 | 135,215 |
| Customers’ liabilities on acceptances | 780 | 471 |
| Bank owned life insurance (“BOLI”) | 89,484 | 89,061 |
| Investments in affordable housing partnerships | 52,341 | 54,474 |
| Operating lease right-of-use assets (“ROU”), net | 43,849 | 46,611 |
| Goodwill | 464,450 | 464,450 |
| Core deposit intangible assets, net | 3,534 | 3,935 |
| Servicing assets, net | 8,869 | 9,631 |
| Other assets | 88,056 | 118,009 |
| Total assets | $18,088,214 | $19,131,522 |
(Continued)
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
| (Unaudited) | ||
|---|---|---|
| March 31,2024 | December 31,2023 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY · (Dollars in thousands, except share data) | ||
| LIABILITIES: | ||
| Deposits: | ||
| Noninterest bearing | $3,652,592 | $3,914,967 |
| Interest bearing: | ||
| Money market and NOW accounts | 4,393,971 | 4,169,543 |
| Savings deposits | 919,093 | 702,486 |
| Time deposits | 5,787,761 | 5,966,757 |
| Total deposits | 14,753,417 | 14,753,753 |
| FHLB and Federal Reserve Bank (“FRB”) borrowings | 795,634 | 1,795,726 |
| Convertible notes, net | 444 | 444 |
| Subordinated debentures, net | 108,148 | 107,825 |
| Accrued interest payable | 122,467 | 168,174 |
| Acceptances outstanding | 780 | 471 |
| Operating lease liabilities | 49,749 | 52,670 |
| Commitments to fund investments in affordable housing partnerships | 20,675 | 21,017 |
| Other liabilities | 124,630 | 110,199 |
| Total liabilities | $15,975,944 | $17,010,279 |
| Commitments and contingent liabilities (Note 12) | ||
| STOCKHOLDERS’ EQUITY: | ||
| Common stock, $0.001 par value; 150,000,000 authorized shares: issued and outstanding 137,992,864 and 120,610,029 shares, respectively, at March 31, 2024, and issued and outstanding 137,509,621 and 120,126,786 shares, respectively, at December 31, 2023 | $138 | $138 |
| Additional paid-in capital | 1,439,484 | 1,439,963 |
| Retained earnings | 1,159,593 | 1,150,547 |
| Treasury stock, at cost; 17,382,835 and 17,382,835 shares at March 31, 2024 and December 31, 2023, respectively | (264,667) | (264,667) |
| Accumulated other comprehensive loss, net | (222,278) | (204,738) |
| Total stockholders’ equity | 2,112,270 | 2,121,243 |
| Total liabilities and stockholders’ equity | $18,088,214 | $19,131,522 |
CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (Dollars in thousands, except per share data) | ||
| INTEREST INCOME: | ||
| Interest and fees on loans | $213,626 | $215,935 |
| Interest on investment securities | 18,049 | 15,125 |
| Interest on cash and deposits at other banks | 27,183 | 4,922 |
| Interest on other investments | 816 | 695 |
| Total interest income | 259,674 | 236,677 |
| INTEREST EXPENSE: | ||
| Interest on deposits | 124,033 | 92,348 |
| Interest on FHLB and FRB borrowings | 17,853 | 6,698 |
| Interest on other borrowings and debt | 2,741 | 3,753 |
| Total interest expense | 144,627 | 102,799 |
| NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 115,047 | 133,878 |
| PROVISION FOR CREDIT LOSSES | 2,600 | 3,320 |
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 112,447 | 130,558 |
| NONINTEREST INCOME: | ||
| Service fees on deposit accounts | 2,587 | 2,221 |
| International service fees | 1,035 | 1,088 |
| Wire transfer fees | 812 | 773 |
| Swap fees | 143 | 42 |
| Net gains on sales of SBA loans | — | 2,225 |
| Net gains on sales of residential mortgage loans | 73 | 64 |
| Other income and fees | 3,636 | 4,565 |
| Total noninterest income | 8,286 | 10,978 |
| NONINTEREST EXPENSE: | ||
| Salaries and employee benefits | 47,836 | 57,169 |
| Occupancy | 6,786 | 7,521 |
| Furniture and equipment | 5,340 | 5,058 |
| Data processing and communications | 2,990 | 2,822 |
| Professional fees | 2,518 | 1,543 |
| Amortization of investments in affordable housing partnerships | 2,134 | 1,716 |
| FDIC assessments | 2,926 | 1,781 |
| FDIC special assessment | 1,000 | — |
| Earned interest credit | 5,834 | 4,427 |
| Restructuring costs | 143 | — |
| Merger related costs | 1,044 | — |
| Other noninterest expense | 6,288 | 6,697 |
| Total noninterest expense | 84,839 | 88,734 |
| INCOME BEFORE INCOME TAXES | 35,894 | 52,802 |
| INCOME TAX PROVISION | 10,030 | 13,681 |
| NET INCOME | $25,864 | $39,121 |
| EARNINGS PER COMMON SHARE | ||
| Basic | $0.22 | $0.33 |
| Diluted | $0.21 | $0.33 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Three Months Ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (Dollars in thousands) | ||
| Net income | $25,864 | $39,121 |
| Other comprehensive (loss) income: | ||
| Change in unrealized net holding (losses) gains on securities AFS | (13,734) | 31,215 |
| Change in unrealized net holding losses on interest rate contracts used in cash flow hedges | (8,186) | (5,938) |
| Reclassification adjustments for net gains realized in net income | (2,931) | (1,738) |
| Tax effect | 7,311 | (6,939) |
| Other comprehensive (loss) income, net of tax | (17,540) | 16,600 |
| Total comprehensive income | $8,324 | $55,721 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
| Common stock · Additional paid-in capital · Retained earnings · Treasury stock · Accumulated other comprehensive loss, net · Totalstockholders’ equity | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shares · Amount | |||||||||||
| (Dollars in thousands, except share and per share data) | |||||||||||
| BALANCE, DECEMBER 31, 2022 | 119,495,209 | $137 | $1,431,003 | $1,083,712 | $(264,667) | $(230,857) | $2,019,328 | ||||
| Adoption of ASU 2022-02 | 407 | 407 | |||||||||
| Adoption of ASU 2022-02 tax adjustment | (120) | (120) | |||||||||
| Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations | 370,523 | — | — | ||||||||
| Stock-based compensation | (26) | (26) | |||||||||
| Cash dividends declared on common stock ($0.14 per share) | (16,730) | (16,730) | |||||||||
| Comprehensive income: | |||||||||||
| Net income | 39,121 | 39,121 | |||||||||
| Other comprehensive income | 16,600 | 16,600 | |||||||||
| BALANCE, MARCH 31, 2023 | 119,865,732 | $137 | $1,430,977 | $1,106,390 | $(264,667) | $(214,257) | $2,058,580 | ||||
| BALANCE, DECEMBER 31, 2023 | 120,126,786 | $138 | $1,439,963 | $1,150,547 | $(264,667) | $(204,738) | $2,121,243 | ||||
| Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations | 483,243 | — | — | ||||||||
| Stock-based compensation | (479) | (479) | |||||||||
| Cash dividends declared on common stock ($0.14 per share) | (16,818) | (16,818) | |||||||||
| Comprehensive income: | |||||||||||
| Net income | 25,864 | 25,864 | |||||||||
| Other comprehensive loss | (17,540) | (17,540) | |||||||||
| BALANCE, MARCH 31, 2024 | 120,610,029 | $138 | $1,439,484 | $1,159,593 | $(264,667) | $(222,278) | $2,112,270 | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (Dollars in thousands) | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income | $25,864 | $39,121 |
| Adjustments to reconcile net income to net cash from operating activities: | ||
| Discount accretion, net of depreciation and amortization | 5,424 | 3,850 |
| Stock-based compensation expense | 2,689 | 2,351 |
| Provision for credit loss on loans | 3,600 | 1,700 |
| (Credit) provision for unfunded loan commitments | (1,000) | 1,620 |
| Net gains on sales of loans | (73) | (2,244) |
| Net change in fair value of derivatives | (4,010) | (2,763) |
| Amortization of investments in affordable housing partnerships | 54 | 1,640 |
| Net change in deferred income taxes | 4,175 | 4,088 |
| Proceeds from sales of loans held for sale | 6,226 | 12,883 |
| Originations of loans held for sale | (5,508) | (23,385) |
| Originations of servicing assets | (7) | (965) |
| Net change in accrued interest receivable | 1,404 | (2,544) |
| Net change in other assets | 24,690 | 18,176 |
| Net change in accrued interest payable | (45,707) | 27,150 |
| Net change in other liabilities | 11,798 | (4,534) |
| Net cash provided by operating activities | 29,619 | 76,144 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Redemption of interest earning deposits in other financial institutions | — | 735 |
| Investment securities available for sale: | ||
| Purchase of securities | (37,154) | (2,775) |
| Proceeds from matured, called, or paid-down securities | 151,551 | 45,038 |
| Investment securities held to maturity: | ||
| Purchase of securities | — | (5,545) |
| Proceeds from matured, called, or paid-down securities | 3,327 | 5,357 |
| Purchase of equity investments | (388) | (247) |
| Proceeds from sales of other loans held for sale previously classified as held for investment | — | 99,180 |
| Net change in loans receivable | 132,181 | 176,163 |
| Proceeds from sales of OREO | 63 | 1,209 |
| Purchase of FHLB stock | — | (4,650) |
| Redemption of FHLB stock | — | 6,030 |
| Purchase of premises and equipment | (2,114) | (2,992) |
| Purchase of BOLI policy | — | (11,000) |
| Proceeds from BOLI death benefits | — | 587 |
| Investments in affordable housing partnerships | (342) | (2,184) |
| Net cash provided by investing activities | 247,124 | 304,906 |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Net change in deposits | (336) | 89,408 |
| Proceeds from FHLB advances | 100,000 | 4,200,000 |
| Repayment of FHLB advances | (100,000) | (4,700,000) |
| Proceeds from FRB borrowings | 110,000 | 17,132,000 |
| Repayment of FRB borrowings | (1,110,092) | (15,367,000) |
| Repurchase of convertible notes | — | (10,490) |
| Cash dividends paid on common stock | (16,818) | (16,730) |
| Taxes paid in net settlement of restricted stock | (3,168) | (2,377) |
| Net cash (used in) provided by financing activities | (1,020,414) | 1,324,811 |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (743,671) | 1,705,861 |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,928,967 | 506,776 |
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $1,185,296 | $2,212,637 |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
| Interest paid | $190,011 | $76,822 |
| Income taxes paid | 2,091 | 1,665 |
| SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES | ||
| Transfer from loans receivable to loans held for sale | $— | $162,483 |
| Lease liabilities arising from obtaining ROU assets | 712 | 2,031 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.