HOPE BANCORP INC

For the period ended Jun 30, 2025. Filed Aug 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.

Jun 30, 2025 · Filed Aug 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)
	June 30,2025	December 31,2024
ASSETS · (Dollars in thousands, except share data)
Cash and cash equivalents:
Cash and due from banks	$253,126	$222,658
Interest earning cash in other banks	436,608	235,541
Total cash and cash equivalents	689,734	458,199
Investment securities available for sale (“AFS”), at fair value	2,021,643	1,823,243
Investment securities held to maturity (“HTM”), at amortized cost; fair value of $230,565 and $231,124 at June 30, 2025 and December 31, 2024, respectively	247,246	252,385
Equity investments	88,152	39,946
Loans held for sale, at lower of cost or fair value	12,051	14,491
Loans receivable, net of allowance for credit losses of $149,505 and $150,527 at June 30, 2025 and December 31, 2024, respectively	14,285,282	13,467,745
Federal Home Loan Bank (“FHLB”) stock, at cost	18,600	17,250
Premises and equipment, net	69,141	51,759
Accrued interest receivable	53,589	51,169
Deferred tax assets, net	202,996	140,044
Bank owned life insurance (“BOLI”)	140,427	90,158
Investments in affordable housing partnerships	30,848	32,354
Operating lease right-of-use assets (“ROU”), net	58,372	39,432
Goodwill	478,104	464,450
Core deposit intangible assets, net	47,324	2,331
Servicing assets, net	11,822	10,051
Other assets	91,686	99,001
Total assets	$18,547,017	$17,054,008

(Continued)

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)
	June 30,2025	December 31,2024
LIABILITIES AND STOCKHOLDERS’ EQUITY · (Dollars in thousands, except share data)
LIABILITIES:
Deposits:
Noninterest bearing	$3,485,502	$3,377,950
Interest bearing:
Money market and NOW accounts	4,910,645	4,515,251
Savings deposits	1,192,354	660,484
Time deposits	6,354,854	5,773,804
Total deposits	15,943,355	14,327,489
FHLB and Federal Reserve Bank (“FRB”) borrowings	29,752	239,000
Convertible notes and subordinated debentures, net	110,263	109,584
Accrued interest payable	72,004	93,784
Operating lease liabilities	60,885	44,059
Other liabilities	106,641	105,587
Total liabilities	$16,322,900	$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 June 30, 2025 and December 31, 2024, respectively: issued and outstanding 145,507,293 and 128,124,458 shares, respectively, at June 30, 2025, and issued and outstanding 138,138,493 and 120,755,658 shares, respectively, at December 31, 2024	$146	$138
Additional paid-in capital	1,520,129	1,445,373
Retained earnings	1,139,913	1,181,533
Treasury stock, at cost; 17,382,835 and 17,382,835 shares at June 30, 2025 and December 31, 2024, respectively	(264,667)	(264,667)
Accumulated other comprehensive loss, net	(171,404)	(227,872)
Total stockholders’ equity	2,224,117	2,134,505
Total liabilities and stockholders’ equity	$18,547,017	$17,054,008

CONSOLIDATED STATEMENTS OF (LOSS) INCOME

	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
(Dollars in thousands, except per share data)
INTEREST INCOME:
Interest and fees on loans	$211,441	$209,683	$406,402	$423,309
Interest on investment securities	17,769	16,829	33,661	34,878
Interest on cash and deposits at other banks	8,783	5,284	13,988	32,467
Interest on other investments	1,177	805	2,285	1,621
Total interest income	239,170	232,601	456,336	492,275
INTEREST EXPENSE:
Interest on deposits	118,852	122,577	232,437	246,610
Interest on FHLB and FRB borrowings	364	1,430	720	19,283
Interest on other borrowings and debt	2,421	2,734	4,829	5,475
Total interest expense	121,637	126,741	237,986	271,368
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES	117,533	105,860	218,350	220,907
PROVISION FOR CREDIT LOSSES	15,000	1,400	19,800	4,000
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	102,533	104,460	198,550	216,907
NONINTEREST INCOME:
Service fees on deposit accounts	3,106	2,681	6,027	5,268
International service fees	532	696	1,499	1,730
Wire transfer and foreign currency fees	1,058	974	2,044	1,786
Swap fees	1,662	25	2,307	168
Net gains on sales of SBA loans	3,998	1,980	7,129	1,980
Net (losses) gains on sales of investment securities AFS	(38,856)	425	(38,856)	425
Other income and fees	5,544	4,290	12,582	8,000
Total noninterest income	(22,956)	11,071	(7,268)	19,357
NONINTEREST EXPENSE:
Salaries and employee benefits	52,834	44,107	101,294	91,684
Occupancy	8,884	6,906	16,050	13,692
Furniture and equipment	7,817	5,475	13,530	10,815
Data processing and communications	3,602	2,997	6,509	5,987
Professional fees	1,921	2,191	3,841	4,710
Amortization of investments in affordable housing partnerships	2,430	2,284	4,391	4,417
FDIC assessments	2,488	3,003	4,990	5,929
FDIC special assessment	—	(309)	—	691
Earned interest credit expense	3,310	6,139	6,397	11,973
Merger and restructuring-related costs	17,281	2,165	19,800	3,611
Other noninterest expense	8,906	6,029	16,532	12,317
Total noninterest expense	109,473	80,987	193,334	165,826
(LOSS) INCOME BEFORE INCOME TAXES	(29,896)	34,544	(2,052)	70,438
INCOME TAX (BENEFIT) PROVISION	(2,015)	9,274	4,733	19,304
NET (LOSS) INCOME	$(27,881)	$25,270	$(6,785)	$51,134
(LOSSES) EARNINGS PER COMMON SHARE
Basic	$(0.22)	$0.21	$(0.05)	$0.42
Diluted	$(0.22)	$0.21	$(0.05)	$0.42

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
(Dollars in thousands)
Net (loss) income	$(27,881)	$25,270	$(6,785)	$51,134
Other comprehensive income (loss):
Change in unrealized net holding gains (losses) on securities AFS	10,480	(9,381)	43,185	(23,115)
Change in unrealized net holding losses on interest rate contracts used in cash flow hedges	(856)	(2,750)	(2,040)	(10,936)
Reclassification adjustments for net losses (gains) realized in net income	38,475	(3,241)	37,420	(6,172)
Tax effect	(13,191)	4,520	(22,097)	11,831
Other comprehensive income (loss), net of tax	34,908	(10,852)	56,468	(28,392)
Total comprehensive income	$7,027	$14,418	$49,683	$22,742

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, 2024	120,610,029	$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 cancellations	121,313							—
Stock-based compensation, net of tax settlements			1,479					1,479
Cash dividends declared on common stock ($0.14 per share)				(16,885)				(16,885)
Comprehensive income:
Net income				25,270				25,270
Other comprehensive loss						(10,852)		(10,852)
BALANCE, JUNE 30, 2024	120,731,342	$138		$1,440,963	$1,167,978		$(264,667)			$(233,130)	$2,111,282
BALANCE, MARCH 31, 2025	121,074,988	$138		$1,445,153	$1,185,721		$(264,667)			$(206,312)	$2,160,033
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations	72,716	1							1
Stock-based compensation, net of tax settlements			1,657					1,657
Issuance of shares in exchange for Territorial common stock	6,976,754	7		73,319						73,326
Cash dividends declared on common stock ($0.14 per share)				(17,927)				(17,927)
Comprehensive income:
Net loss				(27,881)				(27,881)
Other comprehensive income						34,908		34,908
BALANCE, JUNE 30, 2025	128,124,458	$146		$1,520,129	$1,139,913		$(264,667)			$(171,404)	$2,224,117

(Continued)

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	604,556							—
Stock-based compensation, net of tax settlements			1,000					1,000
Cash dividends declared on common stock ($0.28 per share)				(33,703)				(33,703)
Comprehensive income:
Net income				51,134				51,134
Other comprehensive loss						(28,392)		(28,392)
BALANCE, JUNE 30, 2024	120,731,342	$138		$1,440,963	$1,167,978		$(264,667)			$(233,130)	$2,111,282
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	392,046	1							1
Stock-based compensation, net of tax settlements			1,437					1,437
Issuance of shares in exchange for Territorial common stock	6,976,754	7		73,319						73,326
Cash dividends declared on common stock ($0.28 per share)				(34,835)				(34,835)
Comprehensive income:
Net loss				(6,785)				(6,785)
Other comprehensive income						56,468		56,468
BALANCE, JUNE 30, 2025	128,124,458	$146		$1,520,129	$1,139,913		$(264,667)			$(171,404)	$2,224,117

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,
	2025	2024
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$(6,785)	$51,134
Adjustments to reconcile net (loss) income to net cash from operating activities:
Discount accretion, net of depreciation and amortization	18,045	18,085
Stock-based compensation expense	3,572	4,424
Provision for credit losses	19,800	4,000
Net gains on sales of loans	(8,998)	(2,190)
Gains on BOLI	(1,101)	(856)
Net change in fair value of derivatives	(3,243)	(8,162)
Net losses (gains) on sale of investment securities AFS	38,856	(425)
Net change in deferred income taxes	409	3,701
Proceeds from sales of loans held for sale	85,510	46,372
Originations of loans held for sale	(66,870)	(49,577)
Originations of servicing assets	(3,430)	(749)
Net change in accrued interest receivable	2,798	4,075
Net change in other assets	5,508	11,793
Net change in accrued interest payable	(22,724)	(81,395)
Net change in other liabilities	(25,299)	3,815
Net cash provided by operating activities	36,048	4,045
CASH FLOWS FROM INVESTING ACTIVITIES
Investment securities available for sale:
Purchase of securities	(686,655)	(80,291)
Proceeds from matured, called, or paid-down securities	112,547	193,610
Proceeds from sales and calls of securities	953,057	92,587
Investment securities held to maturity:
Proceeds from matured, called, or paid-down securities	6,787	7,834
Purchase of equity investments	(47,597)	(779)
Proceeds from redemptions of equity investments	134	—
Proceeds from sales of loans held for sale previously classified as held for investment	108,662	21,412
Net change in loans receivable	119,046	199,050
Proceeds from sales of OREO	—	63
Redemption of FHLB and FRB stock	10,347	—
Purchase of premises and equipment	(5,148)	(4,647)
Proceeds from BOLI death benefits	964	—
Investments in affordable housing partnerships	(2,824)	(2,672)
Net cash received from Merger with Territorial	86,696	—
Net cash provided by investing activities	656,016	426,167
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	(54,560)	(42,282)
Proceeds from FHLB advances	100,000	300,000
Repayment of FHLB advances	(330,000)	(300,000)
Proceeds from FRB borrowings	172,100	786,100
Repayment of FRB borrowings	(311,100)	(2,411,826)
Cash dividends paid on common stock	(34,835)	(33,703)
Taxes paid in net settlement of restricted stock	(2,135)	(3,424)
Issuance of additional stock pursuant to various stock plans	1	—
Net cash used in financing activities	(460,529)	(1,705,135)
NET CHANGE IN CASH AND CASH EQUIVALENTS	231,535	(1,274,923)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	458,199	1,928,967
CASH AND CASH EQUIVALENTS, END OF PERIOD	$689,734	$654,044
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	$261,049	$352,114
Cash paid for income taxes, net	1,799	20,632
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES
Transfer from loans receivable to loans held for sale	115,878	81,130
Lease liabilities arising from obtaining ROU assets	3,297	2,058
Merger with Territorial (See Note 16 - “Business Combinations”):
Identifiable assets acquired, net of cash	1,844,093	—
Liabilities assumed	1,871,117	—
Goodwill	13,654	—
Issuance of common stock as consideration	73,326	—

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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.