HOPE BANCORP INC

For the period ended Mar 31, 2025. Filed May 8, 2025.

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.

Mar 31, 2025 · Filed May 8, 2025

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

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Contents

Item 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)
	March 31,2025	December 31,2024
ASSETS · (Dollars in thousands, except share data)
Cash and cash equivalents:
Cash and due from banks	$227,576	$222,658
Interest earning cash in other banks	505,906	235,541
Total cash and cash equivalents	733,482	458,199
Investment securities available for sale (“AFS”), at fair value	1,838,410	1,823,243
Investment securities held to maturity (“HTM”), at amortized cost; fair value of $233,080 and $231,124 at March 31, 2025 and December 31, 2024, respectively	250,176	252,385
Equity investments	86,236	39,946
Loans held for sale, at lower of cost or fair value	183	14,491
Loans receivable, net of allowance for credit losses of $147,412 and $150,527 at March 31, 2025 and December 31, 2024, respectively	13,187,882	13,467,745
Federal Home Loan Bank (“FHLB”) stock, at cost	17,250	17,250
Premises and equipment, net	52,296	51,759
Accrued interest receivable	49,986	51,169
Deferred tax assets, net	127,492	140,044
Bank owned life insurance (“BOLI”)	90,573	90,158
Investments in affordable housing partnerships	30,455	32,354
Operating lease right-of-use assets (“ROU”), net	36,574	39,432
Goodwill	464,450	464,450
Core deposit intangible assets, net	1,955	2,331
Servicing assets, net	10,775	10,051
Other assets	90,141	99,001
Total assets	$17,068,316	$17,054,008

(Continued)

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)
	March 31,2025	December 31,2024
LIABILITIES AND STOCKHOLDERS’ EQUITY · (Dollars in thousands, except share data)
LIABILITIES:
Deposits:
Noninterest bearing	$3,362,842	$3,377,950
Interest bearing:
Money market and NOW accounts	4,779,899	4,515,251
Savings deposits	630,572	660,484
Time deposits	5,715,006	5,773,804
Total deposits	14,488,319	14,327,489
FHLB and Federal Reserve Bank (“FRB”) borrowings	100,000	239,000
Convertible notes and subordinated debentures, net	109,921	109,584
Accrued interest payable	81,436	93,784
Operating lease liabilities	40,922	44,059
Other liabilities	87,685	105,587
Total liabilities	$14,908,283	$14,919,503
Commitments and contingent liabilities (Note 9)
STOCKHOLDERS’ EQUITY:
Common stock, $0.001 par value; 300,000,000 and 300,000,000 authorized shares at March 31, 2025 and December 31, 2024, respectively: issued and outstanding 138,457,823 and 121,074,988 shares, respectively, at March 31, 2025, and issued and outstanding 138,138,493 and 120,755,658 shares, respectively, at December 31, 2024	$138	$138
Additional paid-in capital	1,445,153	1,445,373
Retained earnings	1,185,721	1,181,533
Treasury stock, at cost; 17,382,835 and 17,382,835 shares at March 31, 2025 and December 31, 2024, respectively	(264,667)	(264,667)
Accumulated other comprehensive loss, net	(206,312)	(227,872)
Total stockholders’ equity	2,160,033	2,134,505
Total liabilities and stockholders’ equity	$17,068,316	$17,054,008

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended March 31,
	2025	2024
(Dollars in thousands, except per share data)
INTEREST INCOME:
Interest and fees on loans	$194,961	$213,626
Interest on investment securities	15,892	18,049
Interest on cash and deposits at other banks	5,205	27,183
Interest on other investments	1,108	816
Total interest income	217,166	259,674
INTEREST EXPENSE:
Interest on deposits	113,585	124,033
Interest on FHLB and FRB borrowings	356	17,853
Interest on other borrowings and debt	2,408	2,741
Total interest expense	116,349	144,627
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES	100,817	115,047
PROVISION FOR CREDIT LOSSES	4,800	2,600
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	96,017	112,447
NONINTEREST INCOME:
Service fees on deposit accounts	2,921	2,587
International service fees	967	1,035
Wire transfer and foreign currency fees	986	812
Swap fees	645	143
Net gains on sales of SBA loans	3,131	—
Other income and fees	7,038	3,709
Total noninterest income	15,688	8,286
NONINTEREST EXPENSE:
Salaries and employee benefits	48,460	47,577
Occupancy	7,166	6,786
Furniture and equipment	5,713	5,340
Data processing and communications	2,907	2,990
Professional fees	1,920	2,518
Amortization of investments in affordable housing partnerships	1,961	2,134
FDIC assessments	2,502	2,926
FDIC special assessment	—	1,000
Earned interest credit expense	3,087	5,834
Restructuring-related costs	166	402
Merger-related costs	2,353	1,044
Other noninterest expense	7,626	6,288
Total noninterest expense	83,861	84,839
INCOME BEFORE INCOME TAXES	27,844	35,894
INCOME TAX PROVISION	6,748	10,030
NET INCOME	$21,096	$25,864
EARNINGS PER COMMON SHARE
Basic	$0.17	$0.22
Diluted	$0.17	$0.21

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended March 31,
	2025	2024
(Dollars in thousands)
Net income	$21,096	$25,864
Other comprehensive income (loss):
Change in unrealized net holding gains (losses) on securities AFS	32,705	(13,734)
Change in unrealized net holding losses on interest rate contracts used in cash flow hedges	(1,184)	(8,186)
Reclassification adjustments for net gains realized in net income	(1,055)	(2,931)
Tax effect	(8,906)	7,311
Other comprehensive income (loss), net of tax	21,560	(17,540)
Total comprehensive income	$42,656	$8,324

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, 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, net of tax settlements		(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
BALANCE, DECEMBER 31, 2024	120,755,658	$138		$1,445,373		$1,181,533		$(264,667)	$(227,872)	$2,134,505
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations	319,330						—
Stock-based compensation, net of tax settlements		(220)					(220)
Cash dividends declared on common stock ($0.14 per share)			(16,908)				(16,908)
Comprehensive income:
Net income			21,096				21,096
Other comprehensive income					21,560		21,560
BALANCE, MARCH 31, 2025	121,074,988	$138		$1,445,153		$1,185,721		$(264,667)	$(206,312)	$2,160,033

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended March 31,
	2025	2024
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$21,096	$25,864
Adjustments to reconcile net income to net cash from operating activities:
Discount accretion, net of depreciation and amortization	10,197	5,424
Stock-based compensation expense	1,886	2,689
Provision for credit losses	4,800	2,600
Net gains on sales of loans	(4,920)	(73)
Gains on BOLI	(415)	(423)
Net change in fair value of derivatives	(2,162)	(4,010)
Net change in deferred income taxes	3,645	4,175
Proceeds from sales of loans held for sale	27,161	6,226
Originations of loans held for sale	(7,148)	(5,508)
Originations of servicing assets	(1,444)	(7)
Net change in accrued interest receivable	1,183	1,404
Net change in other assets	6,789	25,167
Net change in accrued interest payable	(12,348)	(45,707)
Net change in other liabilities	(21,653)	11,798
Net cash provided by operating activities	26,667	29,619
CASH FLOWS FROM INVESTING ACTIVITIES
Investment securities available for sale:
Purchase of securities	(54,041)	(37,154)
Proceeds from matured, called, or paid-down securities	71,030	151,551
Investment securities held to maturity:
Proceeds from matured, called, or paid-down securities	3,041	3,327
Purchase of equity investments	(45,726)	(388)
Proceeds from redemptions of equity investments	62	—
Proceeds from sales of loans held for sale previously classified as held for investment	58,269	—
Net change in loans receivable	215,824	132,181
Proceeds from sales of OREO	—	63
Purchase of premises and equipment	(2,659)	(2,114)
Investments in affordable housing partnerships	—	(342)
Net cash provided by investing activities	245,800	247,124
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	160,830	(336)
Proceeds from FHLB advances	100,000	100,000
Repayment of FHLB advances	(100,000)	(100,000)
Proceeds from FRB borrowings	172,000	110,000
Repayment of FRB borrowings	(311,000)	(1,110,092)
Cash dividends paid on common stock	(16,908)	(16,818)
Taxes paid in net settlement of restricted stock	(2,106)	(3,168)
Net cash provided by (used in) financing activities	2,816	(1,020,414)
NET CHANGE IN CASH AND CASH EQUIVALENTS	275,283	(743,671)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	458,199	1,928,967
CASH AND CASH EQUIVALENTS, END OF PERIOD	$733,482	$1,185,296
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	$128,360	$190,011
Income taxes paid	1,639	2,091
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES
Transfer from loans receivable to loans held for sale	59,068	—
ROU assets obtained in exchange for lease liabilities, net	482	712

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