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Midas Edge

HOPE BANCORP INC

For the period ended Jun 30, 2024. Filed Aug 6, 2024.

View on SEC.gov

About this filing

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.

Jun 30, 2024 · Filed Aug 6, 2024

HOPE$13.24-0.9%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits
Contents

Item 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)
June 30,2024December 31,2023
ASSETS · (Dollars in thousands, except share data)
Cash and cash equivalents:
Cash and due from banks$187,817$172,813
Interest earning cash in other banks466,2271,756,154
Total cash and cash equivalents654,0441,928,967
Investment securities available for sale (“AFS”), at fair value1,914,7912,145,059
Investment securities held to maturity (“HTM”), at amortized cost; fair value of $237,621 and $250,518 at June 30, 2024 and December 31, 2023, respectively258,068263,912
Equity investments44,27843,750
Loans held for sale, at lower of cost or fair value68,3163,408
Loans receivable, net of allowance for credit losses of $156,019 and $158,694 at June 30, 2024 and December 31, 2023, respectively13,410,98313,694,925
Other real estate owned (“OREO”), net—63
Federal Home Loan Bank (“FHLB”) stock, at cost17,25017,250
Premises and equipment, net50,91950,611
Accrued interest receivable57,64561,720
Deferred tax assets, net143,343135,215
Bank owned life insurance (“BOLI”)89,91789,061
Investments in affordable housing partnerships50,05754,474
Operating lease right-of-use assets (“ROU”), net41,92246,611
Goodwill464,450464,450
Core deposit intangible assets, net3,1333,935
Servicing assets, net8,9849,631
Other assets96,991118,480
Total assets$17,375,091$19,131,522

(Continued)

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)
June 30,2024December 31,2023
LIABILITIES AND STOCKHOLDERS’ EQUITY · (Dollars in thousands, except share data)
LIABILITIES:
Deposits:
Noninterest bearing$3,671,192$3,914,967
Interest bearing:
Money market and NOW accounts4,118,6514,169,543
Savings deposits789,209702,486
Time deposits6,132,4195,966,757
Total deposits14,711,47114,753,753
FHLB and Federal Reserve Bank (“FRB”) borrowings170,0001,795,726
Convertible notes and subordinated debentures, net108,918108,269
Accrued interest payable86,779168,174
Operating lease liabilities47,10452,670
Commitments to fund investments in affordable housing partnerships18,34521,017
Other liabilities121,192110,670
Total liabilities$15,263,809$17,010,279
Commitments and contingent liabilities (Note 12)
STOCKHOLDERS’ EQUITY:
Common stock, $0.001 par value; 300,000,000 and 150,000,000 authorized shares at June 30, 2024 and December 31, 2023, respectively: issued and outstanding 138,114,177 and 120,731,342 shares, respectively, at June 30, 2024, and issued and outstanding 137,509,621 and 120,126,786 shares, respectively, at December 31, 2023$138$138
Additional paid-in capital1,440,9631,439,963
Retained earnings1,167,9781,150,547
Treasury stock, at cost; 17,382,835 and 17,382,835 shares at June 30, 2024 and December 31, 2023, respectively(264,667)(264,667)
Accumulated other comprehensive loss, net(233,130)(204,738)
Total stockholders’ equity2,111,2822,121,243
Total liabilities and stockholders’ equity$17,375,091$19,131,522

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(Dollars in thousands, except per share data)
INTEREST INCOME:
Interest and fees on loans$209,683$225,671$423,309$441,606
Interest on investment securities16,82915,53434,87830,659
Interest on cash and deposits at other banks5,28425,29532,46730,217
Interest on other investments8056841,6211,379
Total interest income232,601267,184492,275503,861
INTEREST EXPENSE:
Interest on deposits122,577109,724246,610202,072
Interest on FHLB and FRB borrowings1,43023,62219,28330,320
Interest on other borrowings and debt2,7343,1495,4756,902
Total interest expense126,741136,495271,368239,294
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES105,860130,689220,907264,567
PROVISION FOR CREDIT LOSSES1,4009,0104,00012,330
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES104,460121,679216,907252,237
NONINTEREST INCOME:
Service fees on deposit accounts2,6812,3255,2684,546
International service fees6968541,7301,942
Wire transfer and foreign currency fees9748501,7861,623
Swap fees25674168716
Net gains on sales of SBA loans1,9801,8721,9804,097
Net gains on sales of investment securities AFS425—425—
Other income and fees4,29010,4398,00015,068
Total noninterest income11,07117,01419,35727,992
NONINTEREST EXPENSE:
Salaries and employee benefits44,10752,30591,684109,474
Occupancy6,9066,96713,69214,488
Furniture and equipment5,4755,39310,81510,451
Data processing and communications2,9972,9175,9875,739
Professional fees2,1911,4164,7102,959
Amortization of investments in affordable housing partnerships2,2841,9124,4173,628
FDIC assessments3,0034,6915,9296,472
FDIC special assessment(309)—691—
Earned interest credit expense6,1395,09011,9739,517
Restructuring-related costs576—978—
Merger-related costs1,589—2,633—
Other noninterest expense6,0296,53212,31713,229
Total noninterest expense80,98787,223165,826175,957
INCOME BEFORE INCOME TAXES34,54451,47070,438104,272
INCOME TAX PROVISION9,27413,44819,30427,129
NET INCOME$25,270$38,022$51,134$77,143
EARNINGS PER COMMON SHARE
Basic$0.21$0.32$0.42$0.64
Diluted$0.21$0.32$0.42$0.64

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(Dollars in thousands)
Net income$25,270$38,022$51,134$77,143
Other comprehensive (loss) income:
Change in unrealized net holding (losses) gains on securities AFS(9,381)(31,071)(23,115)144
Change in unrealized net holding (losses) gains on interest rate contracts used in cash flow hedges(2,750)13,653(10,936)7,715
Reclassification adjustments for net gains realized in net income(3,241)(3,322)(6,172)(5,060)
Tax effect4,5206,11311,831(826)
Other comprehensive (loss) income, net of tax(10,852)(14,627)(28,392)1,973
Total comprehensive income$14,418$23,395$22,742$79,116

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, MARCH 31, 2023119,865,732$137$1,430,977$1,106,390$(264,667)$(214,257)$2,058,580
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations149,156—
Stock-based compensation, net of tax settlements2,8112,811
Cash dividends declared on common stock ($0.14 per share)(16,788)(16,788)
Comprehensive income:
Net income38,02238,022
Other comprehensive loss(14,627)(14,627)
BALANCE, JUNE 30, 2023120,014,888$137$1,433,788$1,127,624$(264,667)$(228,884)$2,067,998
BALANCE, MARCH 31, 2024120,610,029$138$1,439,484$1,159,593$(264,667)$(222,278)$2,112,270
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations121,313—
Stock-based compensation, net of tax settlements1,4791,479
Cash dividends declared on common stock ($0.14 per share)(16,885)(16,885)
Comprehensive income:
Net income25,27025,270
Other comprehensive loss(10,852)(10,852)
BALANCE, JUNE 30, 2024120,731,342$138$1,440,963$1,167,978$(264,667)$(233,130)$2,111,282
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, 2022119,495,209$137$1,431,003$1,083,712$(264,667)$(230,857)$2,019,328
Adoption of ASU 2022-02407407
Adoption of ASU 2022-02 tax adjustment(120)(120)
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations519,679—
Stock-based compensation, net of tax settlements2,7852,785
Cash dividends declared on common stock ($0.28 per share)(33,518)(33,518)
Comprehensive income:
Net income77,14377,143
Other comprehensive income1,9731,973
BALANCE, JUNE 30, 2023120,014,888$137$1,433,788$1,127,624$(264,667)$(228,884)$2,067,998
BALANCE, DECEMBER 31, 2023120,126,786$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 cancellations604,556—
Stock-based compensation, net of tax settlements1,0001,000
Cash dividends declared on common stock ($0.28 per share)(33,703)(33,703)
Comprehensive income:
Net income51,13451,134
Other comprehensive loss(28,392)(28,392)
BALANCE, JUNE 30, 2024120,731,342$138$1,440,963$1,167,978$(264,667)$(233,130)$2,111,282

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,
20242023
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$51,134$77,143
Adjustments to reconcile net income to net cash from operating activities:
Discount accretion, net of depreciation and amortization18,08517,802
Stock-based compensation expense4,4245,734
Provision for credit losses4,00012,330
Distribution gain from investment in affordable housing partnerships—(5,819)
Net gains on sales of loans(2,190)(4,018)
Net change in fair value of derivatives(8,162)(6,919)
Gain on debt extinguishment—(405)
Net change in deferred income taxes3,7013,164
Proceeds from sales of loans held for sale46,37257,348
Originations of loans held for sale(49,577)(46,732)
Originations of servicing assets(749)(1,849)
Net change in accrued interest receivable4,075(6,239)
Net change in other assets10,512(484)
Net change in accrued interest payable(81,395)82,568
Net change in other liabilities3,81518,794
Net cash provided by operating activities4,045202,418
CASH FLOWS FROM INVESTING ACTIVITIES
Redemption of interest earning deposits in other financial institutions—735
Investment securities available for sale:
Purchase of securities(80,291)(180,758)
Proceeds from matured, called, or paid-down securities193,610234,135
Proceeds from sales and calls of securities available for sale92,587—
Investment securities held to maturity:
Purchase of securities—(5,545)
Proceeds from matured, called, or paid-down securities7,8348,680
Purchase of equity investments(779)(569)
Proceeds from sales of other loans held for sale previously classified as held for investment21,412206,993
Net change in loans receivable199,050325,044
Proceeds from sales of OREO631,209
Purchase of FHLB stock—(4,650)
Redemption of FHLB stock—6,030
Purchase of premises and equipment(4,647)(7,719)
Purchase of BOLI policy—(11,000)
Proceeds from BOLI death benefits—587
Investments in affordable housing partnerships(2,672)(2,470)
Net cash provided by investing activities426,167570,702
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits(42,282)(119,449)
Proceeds from FHLB advances300,0005,250,000
Repayment of FHLB advances(300,000)(5,750,000)
Proceeds from FRB borrowings786,10035,896,000
Repayment of FRB borrowings(2,411,826)(34,001,000)
Repurchase of convertible notes—(19,534)
Repayment of convertible notes—(197,107)
Cash dividends paid on common stock(33,703)(33,518)
Taxes paid in net settlement of restricted stock(3,424)(2,949)
Net cash (used in) provided by financing activities(1,705,135)1,022,443
NET CHANGE IN CASH AND CASH EQUIVALENTS(1,274,923)1,795,563
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD1,928,967506,776
CASH AND CASH EQUIVALENTS, END OF PERIOD$654,044$2,302,339
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid$352,114$155,761
Income taxes paid20,6325,069
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES
Transfer from loans receivable to loans held for sale$81,130$237,259
Transfer from loans held for sale to loans receivable—22,400
Lease liabilities arising from obtaining ROU assets2,0586,113
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.