HOPE BANCORP INC Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>HOPE BANCORP INC filed its Q1 2024 10-Q report, detailing financial performance and corporate information.</b>

AI Summary

HOPE BANCORP INC (HOPE) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. HOPE BANCORP INC filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's principal executive offices are located at 3200 Wilshire Blvd, Suite 1400, Los Angeles, CA 90010. HOPE BANCORP INC was formerly known as BBCN BANCORP INC and NARA BANCORP INC. The SIC code for the company is NATIONAL COMMERCIAL BANKS [6021].

Why It Matters

For investors and stakeholders tracking HOPE BANCORP INC, this filing contains several important signals. This filing provides investors and analysts with the latest financial data for HOPE BANCORP INC, crucial for evaluating its current performance and future prospects. Understanding the details within this 10-Q is essential for assessing the company's financial health, operational status, and any potential risks or opportunities.

Risk Assessment

Risk Level: low — HOPE BANCORP INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant negative news or disclosures that would elevate the risk level.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to assess HOPE BANCORP INC's performance trends and outlook.

Key Numbers

• 2024-03-31 — Period of Report (Conformed period of report)
• 2024-05-07 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (Reporting period start date)
• 2024-03-31 — Quarter End Date (Reporting period end date)

Key Players & Entities

• HOPE BANCORP INC (company) — Filer name
• BBCN BANCORP INC (company) — Former company name
• NARA BANCORP INC (company) — Former company name
• 3200 WILSHIRE BLVD (location) — Business address street 1
• LOS ANGELES (location) — Business address city
• CA (location) — Business address state
• 90010 (location) — Business address zip

FAQ

Industry Context

HOPE BANCORP INC operates within the national commercial banks industry.

Regulatory Implications

As a commercial bank, HOPE BANCORP INC is subject to regulations from various financial authorities.

What Investors Should Do

1. Analyze the balance sheet for changes in assets, liabilities, and equity.
2. Examine the income statement for revenue trends and profitability.
3. Review any disclosures related to regulatory changes or compliance.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing an update from the previous year's filings.

Key Financial Figures

• $0.001 — ) of the Act: Common Stock, par value $0.001 per share HOPE NASDAQ Global Select Mar
• $1,000 — t an initial rate of 45.0760 shares per $1,000 principal amount of the notes (See Note

Filing Documents

• hope-20240331.htm (10-Q) — 3004KB
• ex311-03312024.htm (EX-31.1) — 10KB
• ex312-03312024.htm (EX-31.2) — 9KB
• ex321-03312024.htm (EX-32.1) — 5KB
• ex322-03312024.htm (EX-32.2) — 5KB
• 0001128361-24-000016.txt (&nbsp;) — 16791KB
• hope-20240331.xsd (EX-101.SCH) — 88KB
• hope-20240331_cal.xml (EX-101.CAL) — 116KB
• hope-20240331_def.xml (EX-101.DEF) — 547KB
• hope-20240331_lab.xml (EX-101.LAB) — 1118KB
• hope-20240331_pre.xml (EX-101.PRE) — 847KB
• hope-20240331_htm.xml (XML) — 3700KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS Consolidated Statements of Financial Condition (Unaudited) 4 Consolidated Statements of Income (Unaudited) 6 Consolidated Statements of Comprehensive Income (Unaudited) 7 Consolidated Statements of Changes in Stockholders' Equity (Unaudited) 8 Consolidated Statements of Cash Flows (Unaudited) 9

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 1. Hope Bancorp, Inc. 10 2. Basis of Presentation 10 3. Earnings Per Share ("EPS") 12 4. Equity Investments 13 5. Investment Securities 14 6. Loans Receivable and Allowance for Credit Losses 18 7. Leases 28 8. Deposits 30 9. Borrowings 31 10. Convertible Notes and Subordinated Debentures 32 11. Derivative Financial Instruments 34 12. Commitments and Contingencies 37 13. Goodwill, Intangible Assets, and Servicing Assets 38 14. Income Taxes 40 15. Fair Value Measurements 41 16. Stockholders' Equity 48 17. Stock-Based Compensation 49 18. Regulatory Matters 51 19. Revenue Recognition 53 20. Subsequent Events 54

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 55

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 75

CONTROLS AND PROCEDURES

Item 4. CONTROLS AND PROCEDURES 77

- OTHER INFORMATION

PART II - OTHER INFORMATION

LEGAL PROCEEDINGS 78

Item 1. LEGAL PROCEEDINGS 78

RISK FACTORS 78

Item 1A. RISK FACTORS 78

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 79

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 79

DEFAULTS UPON SENIOR SECURITIES 79

Item 3. DEFAULTS UPON SENIOR SECURITIES 79

MINE SAFETY DISCLOSURES 79

Item 4. MINE SAFETY DISCLOSURES 79

OTHER INFORMATION 79

Item 5. OTHER INFORMATION 79

EXHIBITS 79

Item 6. EXHIBITS 79 INDEX TO EXHIBITS 80 SIGNATURES 81 2

Forward-Looking Statements

Forward-Looking Statements Certain statements in this Quarterly Report on Form 10-Q may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market, and statements regarding our business strategies, objectives and vision. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words "will," "believes," "expects," "anticipates," "intends," "plans," "projects," "forecasts," "estimates" or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, trends, uncertainties, and factors that are beyond the Company's control or ability to predict. The Company's actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include: possible further deterioration in economic conditions in our areas of operation; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company's allowances for credit losses; geopolitical instability or unrest; regulatory risks associated with current and future regulations; and risks associated with the execution of our organizational restructuring and failing to achieve its anticipated results. In addition, there are risks and uncertainties related to our proposed merg

Financial Statements

Item 1. Financial Statements HOPE BANCORP, INC. AND SUBSIDIARIES 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) 4 HOPE BANCORP, INC. AND SUBSIDIARIES 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Hope Bancorp, Inc. Hope Bancorp, Inc. ("Hope Bancorp" on a parent-only basis and the "Company" on a consolidated basis), headquartered in Los Angeles, California, is the holding company for Bank of Hope (the "Bank"). At March 31, 2024, the Bank has 48 branches and nine loan production offices in California, New York, Texas, Washington, Illinois, New Jersey, Virginia, Georgia, Alabama, Colorado and Oregon as well a representative office in Seoul, South Korea. The Company is a corporation organized under the laws of the state of Delaware and a bank holding company registered under the Bank Holding Company Act of 1956, as amended. On March 28, 2024, the Bank entered into a Purchase and Assumption Agreement with PromiseOne Bank, a Georgia state bank, to sell the deposits, other liabilities and certain physical assets of the Bank's two branches located in Virginia (Annandale and Centreville). The transaction is expected to be completed in the second half of 2024, subject to regulatory approvals and other customary closing conditions. 2. Basis of Presentation The consolidated financial statements included herein have been prepared without an audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"), except for the Consolidated Statement of Financial Condition at December 31, 2023, which was from the audited financial statements included in the Company's 2023 Annual Report on Form 10-K. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such SEC rules and regulations. The consolidated financial statements include the accounts of Hope Bancorp and its wholly owned subsidiaries, principally the Bank. All intercompany transactions and balances have been eliminated in consolidation. The C

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