LOS ANGELES--(BUSINESS WIRE)--Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its third quarter and nine months ended September 30, 2023. For the three months ended September 30, 2023, net income totaled $30.0 million, or $0.25 per diluted common share. This compares with net income of $38.0 million, or $0.32 per diluted common share, in the preceding second quarter.
“Our third quarter 2023 net interest margin expanded 13 basis points, and our net interest income grew 4% quarter-over-quarter,” stated Kevin S. Kim, Chairman, President and Chief Executive Officer. “We maintained disciplined expense control and our noninterest expenses decreased 1% over the same period. However, we recorded a provision for credit losses of $17 million for the third quarter, and certain one-time gains in the second quarter 2023 noninterest income did not reoccur. As a result, our net income declined compared with the prior quarter.”
“Our balance sheet continued to strengthen. Total deposits grew to $15.7 billion at September 30, 2023, up 1% from June 30, 2023, reflecting growth in customer deposits, partially offset by a planned reduction of brokered time deposits. Our total capital ratio increased to 13.23% as of September 30, 2023, and all our regulatory capital ratios expanded quarter-over-quarter,” continued Kim. “Our deposit growth, taken together with our expanding capital and ample liquidity, positions us well to take advantage of profitable growth opportunities going forward.”
Strategic Reorganization
The Company also announced today a strategic reorganization designed to enhance shareholder value over the long term. Accordingly, the Company realigned its structure around lines of business and product delivery channels, optimized its production capacity and reduced headcount. The restructuring is expected to generate over $40 million in estimated annualized cost savings, largely related to the reduction in staffing, savings from a planned branch rationalization, subject to customary notices and approvals, and operational process improvements. The Company expects to recognize one-time charges of approximately $12 million in the fourth quarter of 2023 related to the reorganization.
“As the largest Korean American bank in the United States, Bank of Hope has made great strides in transitioning from a traditional community bank into a regional bank serving a wide range of consumer, small business, commercial and corporate customers,” commented Kim. “Today’s strategic reorganization further evolves our business model. As a result, we expect to operate our Bank more efficiently, strengthen our franchise, enhance the customer experience and expand our customer relationships, benefiting all our stakeholders through sustainably improved profitability.”
Financial Summary
|
At or for the Three Months Ended |
||||||||||
(dollars in thousands, except per share data) (unaudited) |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
||||||
Net income |
$ |
30,049 |
|
|
$ |
38,022 |
|
|
$ |
53,748 |
|
Diluted earnings per share |
$ |
0.25 |
|
|
$ |
0.32 |
|
|
$ |
0.45 |
|
Net interest income before provision for credit losses |
$ |
135,378 |
|
|
$ |
130,689 |
|
|
$ |
153,186 |
|
Pre-provision net revenue (“PPNR”) (1) |
$ |
56,810 |
|
|
$ |
60,370 |
|
|
$ |
82,627 |
|
Loans receivable |
$ |
14,306,193 |
|
|
$ |
14,864,810 |
|
|
$ |
15,491,187 |
|
Deposits |
$ |
15,739,859 |
|
|
$ |
15,619,352 |
|
|
$ |
15,502,209 |
|
Total assets |
$ |
20,076,364 |
|
|
$ |
20,366,138 |
|
|
$ |
19,083,388 |
|
Total equity |
$ |
2,030,424 |
|
|
$ |
2,067,998 |
|
|
$ |
1,975,725 |
|
Total capital ratio |
|
13.23 |
% |
|
|
12.64 |
% |
|
|
11.72 |
% |
Tangible common equity (“TCE”) ratio (1) |
|
7.96 |
% |
|
|
8.04 |
% |
|
|
8.09 |
% |
Allowance for credit losses to loans receivable |
|
1.11 |
% |
|
|
1.16 |
% |
|
|
1.04 |
% |
Nonperforming assets to total assets (2) |
|
0.31 |
% |
|
|
0.38 |
% |
|
|
0.51 |
% |
Return on average assets (“ROA”) (3) |
|
0.60 |
% |
|
|
0.74 |
% |
|
|
1.17 |
% |
Return on average equity (“ROE”) (3) |
|
5.78 |
% |
|
|
7.34 |
% |
|
|
10.58 |
% |
Return on average TCE (“ROTCE”) (1) (3) |
|
7.47 |
% |
|
|
9.49 |
% |
|
|
13.77 |
% |
ROA (PPNR) (1) (3) |
|
1.13 |
% |
|
|
1.18 |
% |
|
|
1.79 |
% |
Net interest margin (3) |
|
2.83 |
% |
|
|
2.70 |
% |
|
|
3.49 |
% |
Efficiency ratio |
|
60.5 |
% |
|
|
59.1 |
% |
|
|
50.4 |
% |
(1) |
|
PPNR, TCE ratio, ROTCE, and ROA (PPNR) are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10. |
(2) |
|
Excludes delinquent Small Business Administration (“SBA”) loans that are guaranteed and currently in liquidation. |
(3) |
|
Annualized. |
Operating Results for the 2023 Third Quarter
Net interest income growth and net interest margin expansion. Net interest income before provision for credit losses for the 2023 third quarter totaled $135.4 million, growing 4% from $130.7 million in the preceding second quarter. Third quarter 2023 net interest margin expanded 13 basis points to 2.83%, up from 2.70% in the 2023 second quarter. The linked quarter net interest income growth and net interest margin expansion reflected higher yields on earning assets, a decrease in the average volume of borrowings and debt, and an increase in the average volume of interest-earning cash and deposits at other banks, partially offset by a higher cost of funds and a lower average volume of loans.
Third quarter 2023 weighted average yield on earning assets of 5.77% expanded 24 basis points quarter-over-quarter; the rate of change accelerated from the previous quarter. In comparison, the third quarter 2023 weighted average cost of funds of 3.16% increased 14 basis points quarter-over-quarter; the rate of change decelerated from the previous quarter.
Noninterest income. Noninterest income for the 2023 third quarter totaled $8.3 million, compared with $17.0 million in the preceding second quarter. Second quarter 2023 noninterest income included a one-time $5.8 million cash distribution from a gain on an investment in an affordable housing partnership and $1.9 million of gains on SBA loan sales. The Company did not sell any SBA 7(a) loans during the 2023 third quarter, retaining loan production on its balance sheet instead. In comparison, during the preceding 2023 second quarter, the Company sold $38.4 million of the guaranteed portion of SBA 7(a) loans for net gains on sale of $1.9 million.
Noninterest expense. Noninterest expense for the 2023 third quarter decreased 1% to $86.9 million, down from $87.3 million in the preceding second quarter. The linked quarter decrease was largely driven by lower salaries and employee benefits expense and lower FDIC assessment expense, partially offset by higher earned interest credit costs. Third quarter 2023 salaries and employee benefits expense decreased 2% to $51.0 million, down from $52.3 million in the 2023 second quarter. The Company’s efficiency ratio for the 2023 third quarter was 60.5%, compared with 59.1% in the preceding second quarter.
Tax rate. The effective tax rate for the 2023 third quarter was 24.9%, compared with 26.1% for the preceding second quarter. The year-to-date effective tax rate for the first nine months of 2023 was 25.7%.
Balance Sheet Summary
Strong Liquidity. At September 30, 2023, cash and cash equivalents increased to $2.50 billion, up from $2.30 billion at June 30, 2023, and up from $331.3 million at September 30, 2022. Available borrowing capacity, cash and cash equivalents, and unpledged investment securities totaled $8.29 billion at September 30, 2023, equivalent to 53% of total deposits and well exceeding the Bank’s uninsured deposit balances.
Loans. Loans receivable of $14.31 billion at September 30, 2023, decreased 4% from $14.86 billion at June 30, 2023, reflecting our prudent approach to loan growth, an intentional decrease in mortgage warehouse lines, and the impact of paydowns and payoffs in a high interest rate environment. Year-over-year, loans receivable decreased 8%. The following table sets forth the loan portfolio composition and percentage of total loans at September 30, 2023, June 30, 2023, and September 30, 2022:
(dollars in thousands) (unaudited) |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
|||||||||||||||
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|||||||||
Commercial real estate (“CRE”) loans |
$ |
8,972,886 |
|
62.7 |
% |
|
$ |
9,192,160 |
|
61.9 |
% |
|
$ |
9,504,893 |
|
61.3 |
% |
|||
Commercial and industrial (“C&I”) loans |
|
4,450,341 |
|
|
31.1 |
% |
|
|
4,805,126 |
|
|
32.3 |
% |
|
|
5,124,421 |
|
|
33.1 |
% |
Residential mortgage and other loans |
|
882,966 |
|
|
6.2 |
% |
|
|
867,524 |
|
|
5.8 |
% |
|
|
861,873 |
|
|
5.6 |
% |
Loans receivable |
$ |
14,306,193 |
|
|
100.0 |
% |
|
$ |
14,864,810 |
|
|
100.0 |
% |
|
$ |
15,491,187 |
|
|
100.0 |
% |
Deposits. Total deposits of $15.74 billion at September 30, 2023, grew 1% from $15.62 billion at June 30, 2023, reflecting growth in customer deposits, partially offset by a planned reduction of brokered time deposits. Year-over-year, total deposits increased 2%. The gross loan-to-deposit ratio was 91.0% at September 30, 2023, compared with 95.5% at June 30, 2023, and 100.2% a year ago at September 30, 2022. The following table sets forth the deposit composition and percentage of total deposits at September 30, 2023, June 30, 2023, and September 30, 2022:
(dollars in thousands) (unaudited) |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
|||||||||||||||
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|||||||||
Noninterest bearing demand deposits |
$ |
4,249,788 |
|
27.0 |
% |
|
$ |
4,229,247 |
|
27.1 |
% |
|
$ |
5,590,952 |
|
36.1 |
% |
|||
Money market and interest bearing demand deposits |
|
4,424,918 |
|
|
28.1 |
% |
|
|
4,188,584 |
|
|
26.8 |
% |
|
|
5,885,093 |
|
|
38.0 |
% |
Savings deposits |
|
430,765 |
|
|
2.8 |
% |
|
|
224,495 |
|
|
1.4 |
% |
|
|
317,841 |
|
|
2.0 |
% |
Time deposits |
|
6,634,388 |
|
|
42.1 |
% |
|
|
6,977,026 |
|
|
44.7 |
% |
|
|
3,708,323 |
|
|
23.9 |
% |
Total deposits |
$ |
15,739,859 |
|
|
100.0 |
% |
|
$ |
15,619,352 |
|
|
100.0 |
% |
|
$ |
15,502,209 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross loan-to-deposit ratio |
|
|
91.0 |
% |
|
|
|
95.5 |
% |
|
|
|
100.2 |
% |
||||||
Uninsured deposits at September 30, 2023, represented 37% of the Bank’s deposits.
Borrowings. Federal Home Loan Bank and Federal Reserve Bank borrowings totaled $1.80 billion at September 30, 2023, compared with $2.26 billion at June 30, 2023, and $1.07 billion at September 30, 2022. Linked quarter growth in deposits and decrease in loans reduced the need for borrowings in the 2023 third quarter.
Credit Quality and Allowance for Credit Losses
Nonperforming assets. Nonperforming assets totaled $61.7 million at September 30, 2023, a decrease of 20% from June 30, 2023. The quarter-over-quarter decrease in nonperforming assets reflects charge offs of nonaccrual loans, payoffs and workouts, partially offset by new inflows. The nonperforming assets ratio was 0.31% of total assets at September 30, 2023, an improvement from 0.38% at June 30, 2023.
The following table sets forth the components of nonperforming assets at September 30, 2023, June 30, 2023, and September 30, 2022:
(dollars in thousands) (unaudited) |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
||||||
Loans on nonaccrual status (1) |
$ |
39,081 |
|
|
$ |
61,252 |
|
|
$ |
64,571 |
|
Accruing delinquent loans past due 90 days or more |
|
21,579 |
|
|
|
15,182 |
|
|
|
5,306 |
|
Accruing troubled debt restructured loans (2) |
|
— |
|
|
|
— |
|
|
|
25,631 |
|
Total nonperforming loans |
|
60,660 |
|
|
|
76,434 |
|
|
|
95,508 |
|
Other real estate owned |
|
1,043 |
|
|
|
938 |
|
|
|
1,480 |
|
Total nonperforming assets |
$ |
61,703 |
|
|
$ |
77,372 |
|
|
$ |
96,988 |
|
|
|
|
|
|
|
|
|
|
|||
Nonperforming assets/total assets |
|
0.31 |
% |
|
|
0.38 |
% |
|
|
0.51 |
% |
(1) |
|
Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $12.1 million, $11.9 million and $9.9 million at September 30, 2023, June 30, 2023, and September 30, 2022, respectively. |
(2) |
|
The Company adopted ASU 2022-02 in 2023, which eliminated the concept of troubled debt restructured (“TDR”) loans from GAAP; therefore, accruing TDR loans are no longer included in nonperforming loans. |
Net charge offs. The Company recorded net charge offs of $31.0 million in the 2023 third quarter. This included an idiosyncratic full charge off of $23.4 million related to a borrower that entered into Chapter 7 liquidation in August 2023. Related to this credit, the Company had recorded impairment reserves of $9.6 million at June 30, 2023. For the 2023 third quarter, the Company recorded a provision for credit losses of $16.8 million, compared with $8.9 million in the preceding second quarter.
The following table sets forth net charge offs (recoveries) and net charge offs (recoveries) to average loans receivable, annualized, for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022:
|
For the Three Months Ended |
||||||||||
(dollars in thousands) (unaudited) |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
||||||
Net charge offs (recoveries) |
$ |
30,987 |
|
|
$ |
(552 |
) |
|
$ |
219 |
|
Net charge offs (recoveries)/average loans receivable (annualized) |
|
0.85 |
% |
|
|
(0.01 |
)% |
|
|
0.01 |
% |
Allowance for credit losses. The allowance for credit losses totaled $158.8 million at September 30, 2023, compared with $173.0 million at June 30, 2023. The allowance coverage ratio was 1.11% of loans receivable at September 30, 2023, compared with 1.16% at June 30, 2023. Excluding the $9.6 million of impairment reserves related to the aforementioned charged off credit, the allowance coverage ratio as of June 30, 2023, was 1.10%. Year-over-year, allowance coverage of loans receivable increased from 1.04% at September 30, 2022.
The following table sets forth the allowance for credit losses and allowance coverage ratios at September 30, 2023, June 30, 2023, and September 30, 2022:
(dollars in thousands) (unaudited) |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
||||||
Allowance for credit losses |
$ |
158,809 |
|
|
$ |
172,996 |
|
|
$ |
160,561 |
|
Allowance for credit losses/loans receivable |
|
1.11 |
% |
|
|
1.16 |
% |
|
|
1.04 |
% |
Capital
The Company’s capital ratios are strong and all regulatory capital ratios expanded quarter-over-quarter. At September 30, 2023, the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. The following table sets forth the capital ratios for the Company at September 30, 2023, June 30, 2023, and September 30, 2022:
(unaudited) |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
|
Minimum Guideline for “Well-Capitalized” |
||||
Common Equity Tier 1 Capital Ratio |
11.67 |
% |
|
11.05 |
% |
|
10.32 |
% |
|
6.50 |
% |
Tier 1 Capital Ratio |
12.32 |
% |
|
11.68 |
% |
|
10.92 |
% |
|
8.00 |
% |
Total Capital Ratio |
13.23 |
% |
|
12.64 |
% |
|
11.72 |
% |
|
10.00 |
% |
Leverage Ratio |
9.83 |
% |
|
9.57 |
% |
|
10.25 |
% |
|
5.00 |
% |
At September 30, 2023, total stockholders’ equity was $2.03 billion, or $16.92 per share, tangible common equity per share was $13.01, and the tangible common equity ratio was 7.96%. Quarter-over-quarter, stockholders’ equity declined by 2%, or $37.6 million, primarily reflecting a negative change in accumulated other comprehensive income (“AOCI”) of $53.8 million and $16.8 million in common dividends declared, partially offset by $30.0 million in net income. The following table sets forth the TCE per share and the TCE ratio at September 30, 2023, June 30, 2023, and September 30, 2022:
(unaudited) |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
||||||
TCE per share (1) |
$ |
13.01 |
|
|
$ |
13.32 |
|
|
$ |
12.60 |
|
TCE ratio (1) |
|
7.96 |
% |
|
|
8.04 |
% |
|
|
8.09 |
% |
(1) |
|
TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10. |
Investor Conference Call
The Company previously announced that it will host an investor conference call on Monday, October 23, 2023, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review unaudited financial results for its third quarter ended September 30, 2023. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through October 30, 2023, replay access code 5386919.
Non-GAAP Financial Metrics
This news release contains certain non-GAAP financial measure disclosures, including PPNR, TCE per share, TCE ratio, ROTCE, ROA (PPNR), and ROE (PPNR). Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operational performance and the Company’s capital levels and has included these figures in response to market participant interest in these financial metrics. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the first and only super regional Korean American bank in the United States with $20.08 billion in total assets as of September 30, 2023. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 54 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama, and Georgia. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, New York City, Northern California and Houston; commercial loan production offices in Northern California, Seattle and Tampa, Fla.; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate lending, commercial and industrial lending, SBA lending, and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.
Forward-Looking Statements
Some statements in this news release 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, statements regarding our business strategies, objectives and vision, and statements about our strategic reorganization. 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,” “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 risks and uncertainties. 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, but are not limited to: possible further deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; 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; regulatory risks associated with current and future regulations; and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company’s most recent Annual Report on Form 10-K. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands, except share data) |
|||||||||||||||||
Assets: |
9/30/2023 |
|
6/30/2023 |
|
% change |
|
9/30/2022 |
|
% change |
||||||||
Cash and due from banks |
$ |
2,500,323 |
|
|
$ |
2,302,339 |
|
|
9 |
% |
|
$ |
331,336 |
|
|
655 |
% |
Investment securities |
|
2,260,837 |
|
|
|
2,186,346 |
|
|
3 |
% |
|
|
2,264,533 |
|
|
— |
% |
Federal Home Loan Bank (“FHLB”) stock and other investments |
|
60,433 |
|
|
|
60,213 |
|
|
— |
% |
|
|
65,192 |
|
|
(7 |
)% |
Loans held for sale, at the lower of cost or fair value |
|
19,502 |
|
|
|
49,246 |
|
|
(60 |
)% |
|
|
41,989 |
|
|
(54 |
)% |
Loans receivable |
|
14,306,193 |
|
|
|
14,864,810 |
|
|
(4 |
)% |
|
|
15,491,187 |
|
|
(8 |
)% |
Allowance for credit losses |
|
(158,809 |
) |
|
|
(172,996 |
) |
|
(8 |
)% |
|
|
(160,561 |
) |
|
(1 |
)% |
Net loans receivable |
|
14,147,384 |
|
|
|
14,691,814 |
|
|
(4 |
)% |
|
|
15,330,626 |
|
|
(8 |
)% |
Accrued interest receivable |
|
60,665 |
|
|
|
60,118 |
|
|
1 |
% |
|
|
42,363 |
|
|
43 |
% |
Premises and equipment, net |
|
51,764 |
|
|
|
50,513 |
|
|
2 |
% |
|
|
46,169 |
|
|
12 |
% |
Bank owned life insurance |
|
88,643 |
|
|
|
88,238 |
|
|
— |
% |
|
|
76,788 |
|
|
15 |
% |
Goodwill |
|
464,450 |
|
|
|
464,450 |
|
|
— |
% |
|
|
464,450 |
|
|
— |
% |
Servicing assets |
|
10,457 |
|
|
|
11,532 |
|
|
(9 |
)% |
|
|
11,601 |
|
|
(10 |
)% |
Other intangible assets, net |
|
4,382 |
|
|
|
4,830 |
|
|
(9 |
)% |
|
|
6,212 |
|
|
(29 |
)% |
Other assets |
|
407,524 |
|
|
|
396,499 |
|
|
3 |
% |
|
|
402,129 |
|
|
1 |
% |
Total assets |
$ |
20,076,364 |
|
|
$ |
20,366,138 |
|
|
(1 |
)% |
|
$ |
19,083,388 |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
||||||||
Deposits |
$ |
15,739,859 |
|
|
$ |
15,619,352 |
|
|
1 |
% |
|
$ |
15,502,209 |
|
|
2 |
% |
FHLB and Federal Reserve Bank (“FRB”) borrowings |
|
1,795,726 |
|
|
|
2,260,000 |
|
|
(21 |
)% |
|
|
1,072,000 |
|
|
68 |
% |
Convertible notes, net |
|
444 |
|
|
|
444 |
|
|
— |
% |
|
|
216,913 |
|
|
(100 |
)% |
Subordinated debentures |
|
107,505 |
|
|
|
107,188 |
|
|
— |
% |
|
|
106,258 |
|
|
1 |
% |
Accrued interest payable |
|
166,831 |
|
|
|
109,236 |
|
|
53 |
% |
|
|
11,713 |
|
|
1,324 |
% |
Other liabilities |
|
235,575 |
|
|
|
201,920 |
|
|
17 |
% |
|
|
198,570 |
|
|
19 |
% |
Total liabilities |
$ |
18,045,940 |
|
|
$ |
18,298,140 |
|
|
(1 |
)% |
|
$ |
17,107,663 |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
||||||||
Common stock, $0.001 par value |
$ |
137 |
|
|
$ |
137 |
|
|
— |
% |
|
$ |
137 |
|
|
— |
% |
Additional paid-in capital |
|
1,436,769 |
|
|
|
1,433,788 |
|
|
— |
% |
|
|
1,428,052 |
|
|
1 |
% |
Retained earnings |
|
1,140,870 |
|
|
|
1,127,624 |
|
|
1 |
% |
|
|
1,048,738 |
|
|
9 |
% |
Treasury stock, at cost |
|
(264,667 |
) |
|
|
(264,667 |
) |
|
— |
% |
|
|
(264,667 |
) |
|
— |
% |
Accumulated other comprehensive loss, net |
|
(282,685 |
) |
|
|
(228,884 |
) |
|
(24 |
)% |
|
|
(236,535 |
) |
|
(20 |
)% |
Total stockholders’ equity |
|
2,030,424 |
|
|
|
2,067,998 |
|
|
(2 |
)% |
|
|
1,975,725 |
|
|
3 |
% |
Total liabilities and stockholders’ equity |
$ |
20,076,364 |
|
|
$ |
20,366,138 |
|
|
(1 |
)% |
|
$ |
19,083,388 |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Common stock shares - authorized |
|
150,000,000 |
|
|
|
150,000,000 |
|
|
|
|
|
150,000,000 |
|
|
|
||
Common stock shares - outstanding |
|
120,026,220 |
|
|
|
120,014,888 |
|
|
|
|
|
119,479,253 |
|
|
|
||
Treasury stock shares |
|
17,382,835 |
|
|
|
17,382,835 |
|
|
|
|
|
17,382,835 |
|
|
|
||
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands, except share and per share data) |
||||||||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||||||||
|
9/30/2023 |
|
6/30/2023 |
|
% change |
|
9/30/2022 |
|
% change |
|
9/30/2023 |
|
9/30/2022 |
|
% change |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest and fees on loans |
$ |
229,937 |
|
$ |
225,671 |
|
2 |
% |
|
$ |
175,078 |
|
31 |
% |
|
$ |
671,543 |
|
$ |
452,774 |
|
48 |
% |
|||||
Interest on investment securities |
|
17,006 |
|
|
|
15,534 |
|
|
9 |
% |
|
|
13,498 |
|
|
26 |
% |
|
|
47,665 |
|
|
|
37,462 |
|
|
27 |
% |
Interest on cash and deposits at other banks |
|
28,115 |
|
|
|
25,295 |
|
|
11 |
% |
|
|
142 |
|
|
NM |
|
|
|
58,332 |
|
|
|
352 |
|
|
NM |
|
Interest on other investments |
|
735 |
|
|
|
684 |
|
|
7 |
% |
|
|
464 |
|
|
58 |
% |
|
|
2,114 |
|
|
|
1,290 |
|
|
64 |
% |
Total interest income |
|
275,793 |
|
|
|
267,184 |
|
|
3 |
% |
|
|
189,182 |
|
|
46 |
% |
|
|
779,654 |
|
|
|
491,878 |
|
|
59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest on deposits |
|
117,854 |
|
|
|
109,724 |
|
|
7 |
% |
|
|
30,667 |
|
|
284 |
% |
|
|
319,926 |
|
|
|
51,563 |
|
|
520 |
% |
Interest on borrowings |
|
22,561 |
|
|
|
26,771 |
|
|
(16 |
)% |
|
|
5,329 |
|
|
323 |
% |
|
|
59,783 |
|
|
|
12,415 |
|
|
382 |
% |
Total interest expense |
|
140,415 |
|
|
|
136,495 |
|
|
3 |
% |
|
|
35,996 |
|
|
290 |
% |
|
|
379,709 |
|
|
|
63,978 |
|
|
493 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest income before provision for credit losses |
|
135,378 |
|
|
|
130,689 |
|
|
4 |
% |
|
|
153,186 |
|
|
(12 |
)% |
|
|
399,945 |
|
|
|
427,900 |
|
|
(7 |
)% |
Provision for credit losses |
|
16,800 |
|
|
|
8,900 |
|
|
89 |
% |
|
|
9,200 |
|
|
83 |
% |
|
|
27,400 |
|
|
|
1,400 |
|
|
1,857 |
% |
Net interest income after provision for credit losses |
|
118,578 |
|
|
|
121,789 |
|
|
(3 |
)% |
|
|
143,986 |
|
|
(18 |
)% |
|
|
372,545 |
|
|
|
426,500 |
|
|
(13 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Service fees on deposit accounts |
|
2,415 |
|
|
|
2,325 |
|
|
4 |
% |
|
|
2,535 |
|
|
(5 |
)% |
|
|
6,961 |
|
|
|
6,779 |
|
|
3 |
% |
Net gains on sales of SBA loans |
|
— |
|
|
|
1,872 |
|
|
(100 |
)% |
|
|
2,782 |
|
|
(100 |
)% |
|
|
4,097 |
|
|
|
14,189 |
|
|
(71 |
)% |
Net gains on sales of residential mortgage loans |
|
118 |
|
|
|
82 |
|
|
44 |
% |
|
|
29 |
|
|
307 |
% |
|
|
264 |
|
|
|
862 |
|
|
(69 |
)% |
Other income and fees |
|
5,772 |
|
|
|
12,735 |
|
|
(55 |
)% |
|
|
8,009 |
|
|
(28 |
)% |
|
|
24,975 |
|
|
|
17,457 |
|
|
43 |
% |
Total noninterest income |
|
8,305 |
|
|
|
17,014 |
|
|
(51 |
)% |
|
|
13,355 |
|
|
(38 |
)% |
|
|
36,297 |
|
|
|
39,287 |
|
|
(8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Salaries and employee benefits |
|
51,033 |
|
|
|
52,305 |
|
|
(2 |
)% |
|
|
53,222 |
|
|
(4 |
)% |
|
|
160,507 |
|
|
|
152,025 |
|
|
6 |
% |
Occupancy |
|
7,149 |
|
|
|
6,967 |
|
|
3 |
% |
|
|
6,682 |
|
|
7 |
% |
|
|
21,637 |
|
|
|
21,195 |
|
|
2 |
% |
Furniture and equipment |
|
5,625 |
|
|
|
5,393 |
|
|
4 |
% |
|
|
4,967 |
|
|
13 |
% |
|
|
16,076 |
|
|
|
14,389 |
|
|
12 |
% |
Data processing and communications |
|
2,891 |
|
|
|
2,917 |
|
|
(1 |
)% |
|
|
2,469 |
|
|
17 |
% |
|
|
8,630 |
|
|
|
7,823 |
|
|
10 |
% |
FDIC assessment |
|
3,683 |
|
|
|
4,691 |
|
|
(21 |
)% |
|
|
1,633 |
|
|
126 |
% |
|
|
10,155 |
|
|
|
4,652 |
|
|
118 |
% |
Earned interest credit |
|
6,377 |
|
|
|
5,090 |
|
|
25 |
% |
|
|
4,685 |
|
|
36 |
% |
|
|
15,894 |
|
|
|
5,996 |
|
|
165 |
% |
Other |
|
10,115 |
|
|
|
9,970 |
|
|
1 |
% |
|
|
10,256 |
|
|
(1 |
)% |
|
|
31,661 |
|
|
|
33,572 |
|
|
(6 |
)% |
Total noninterest expense |
|
86,873 |
|
|
|
87,333 |
|
|
(1 |
)% |
|
|
83,914 |
|
|
4 |
% |
|
|
264,560 |
|
|
|
239,652 |
|
|
10 |
% |
Income before income taxes |
|
40,010 |
|
|
|
51,470 |
|
|
(22 |
)% |
|
|
73,427 |
|
|
(46 |
)% |
|
|
144,282 |
|
|
|
226,135 |
|
|
(36 |
)% |
Income tax provision |
|
9,961 |
|
|
|
13,448 |
|
|
(26 |
)% |
|
|
19,679 |
|
|
(49 |
)% |
|
|
37,090 |
|
|
|
59,561 |
|
|
(38 |
)% |
Net income |
$ |
30,049 |
|
|
$ |
38,022 |
|
|
(21 |
)% |
|
$ |
53,748 |
|
|
(44 |
)% |
|
$ |
107,192 |
|
|
$ |
166,574 |
|
|
(36 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Earnings Per Common Share - Basic |
$ |
0.25 |
|
|
$ |
0.32 |
|
|
|
|
$ |
0.45 |
|
|
|
|
$ |
0.89 |
|
|
$ |
1.39 |
|
|
|
|||
Earnings Per Common Share - Diluted |
$ |
0.25 |
|
|
$ |
0.32 |
|
|
|
|
$ |
0.45 |
|
|
|
|
$ |
0.89 |
|
|
$ |
1.38 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted Average Shares Outstanding - Basic |
|
120,020,567 |
|
|
|
119,953,174 |
|
|
|
|
|
119,476,035 |
|
|
|
|
|
119,843,382 |
|
|
|
119,940,044 |
|
|
|
|||
Weighted Average Shares Outstanding - Diluted |
|
120,374,618 |
|
|
|
120,129,359 |
|
|
|
|
|
119,996,523 |
|
|
|
|
|
120,249,952 |
|
|
|
120,595,988 |
|
|
|
|||
Hope Bancorp, Inc. Selected Financial Data Unaudited |
||||||||||||||
|
For the Three Months Ended |
|
For the Nine Months Ended |
|||||||||||
Profitability measures (annualized): |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
|
9/30/2023 |
|
9/30/2022 |
|||||
ROA |
0.60 |
% |
|
0.74 |
% |
|
1.17 |
% |
|
0.72 |
% |
|
1.23 |
% |
ROE |
5.78 |
% |
|
7.34 |
% |
|
10.58 |
% |
|
6.92 |
% |
|
10.85 |
% |
ROA (PPNR) (1) |
1.13 |
% |
|
1.18 |
% |
|
1.79 |
% |
|
1.15 |
% |
|
1.68 |
% |
ROE (PPNR) (1) |
10.93 |
% |
|
11.65 |
% |
|
16.26 |
% |
|
11.08 |
% |
|
14.83 |
% |
ROTCE (1) |
7.47 |
% |
|
9.49 |
% |
|
13.77 |
% |
|
8.95 |
% |
|
14.10 |
% |
Net interest margin |
2.83 |
% |
|
2.70 |
% |
|
3.49 |
% |
|
2.84 |
% |
|
3.36 |
% |
Efficiency ratio (not annualized) |
60.46 |
% |
|
59.13 |
% |
|
50.39 |
% |
|
60.65 |
% |
|
51.30 |
% |
Noninterest expense / average assets |
1.73 |
% |
|
1.71 |
% |
|
1.82 |
% |
|
1.77 |
% |
|
1.77 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
(1) ROA (PPNR), ROE (PPNR), and ROTCE are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10. |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) |
||||||||||||||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||||||||||
|
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
|||||||||||||||||||||||||||
|
|
|
Interest |
|
Annualized |
|
|
|
Interest |
|
Annualized |
|
|
|
Interest |
|
Annualized |
|||||||||||||||
|
Average |
|
Income/ |
|
Average |
|
Average |
|
Income/ |
|
Average |
|
Average |
|
Income/ |
|
Average |
|||||||||||||||
|
Balance |
|
Expense |
|
Yield/Cost |
|
Balance |
|
Expense |
|
Yield/Cost |
|
Balance |
|
Expense |
|
Yield/Cost |
|||||||||||||||
INTEREST EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans, including loans held for sale |
$ |
14,550,106 |
|
$ |
229,937 |
|
6.27 |
% |
|
$ |
15,105,212 |
|
$ |
225,671 |
|
5.99 |
% |
|
$ |
14,925,298 |
|
$ |
175,078 |
|
4.65 |
% |
||||||
Investment securities |
|
2,275,133 |
|
|
|
17,006 |
|
|
2.97 |
% |
|
|
2,243,614 |
|
|
|
15,534 |
|
|
2.78 |
% |
|
|
2,366,696 |
|
|
|
13,498 |
|
|
2.26 |
% |
Interest earning cash and deposits at other banks |
|
2,106,469 |
|
|
|
28,115 |
|
|
5.30 |
% |
|
|
1,996,924 |
|
|
|
25,295 |
|
|
5.08 |
% |
|
|
54,870 |
|
|
|
142 |
|
|
1.03 |
% |
FHLB stock and other investments |
|
47,316 |
|
|
|
735 |
|
|
6.16 |
% |
|
|
47,044 |
|
|
|
684 |
|
|
5.83 |
% |
|
|
52,854 |
|
|
|
464 |
|
|
3.48 |
% |
Total interest earning assets |
$ |
18,979,024 |
|
|
$ |
275,793 |
|
|
5.77 |
% |
|
$ |
19,392,794 |
|
|
$ |
267,184 |
|
|
5.53 |
% |
|
$ |
17,399,718 |
|
|
$ |
189,182 |
|
|
4.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Money market and interest bearing demand |
$ |
4,202,076 |
|
|
$ |
36,574 |
|
|
3.45 |
% |
|
$ |
4,279,819 |
|
|
$ |
34,377 |
|
|
3.22 |
% |
|
$ |
6,255,271 |
|
|
$ |
19,614 |
|
|
1.24 |
% |
Savings deposits |
|
331,354 |
|
|
|
2,240 |
|
|
2.68 |
% |
|
|
216,060 |
|
|
|
674 |
|
|
1.25 |
% |
|
|
324,487 |
|
|
|
969 |
|
|
1.18 |
% |
Time deposits |
|
6,862,038 |
|
|
|
79,040 |
|
|
4.57 |
% |
|
|
6,890,035 |
|
|
|
74,673 |
|
|
4.35 |
% |
|
|
3,146,432 |
|
|
|
10,084 |
|
|
1.27 |
% |
Total interest bearing deposits |
|
11,395,468 |
|
|
|
117,854 |
|
|
4.10 |
% |
|
|
11,385,914 |
|
|
|
109,724 |
|
|
3.87 |
% |
|
|
9,726,190 |
|
|
|
30,667 |
|
|
1.25 |
% |
FHLB and FRB borrowings |
|
1,809,322 |
|
|
|
19,821 |
|
|
4.35 |
% |
|
|
2,177,264 |
|
|
|
23,622 |
|
|
4.35 |
% |
|
|
448,837 |
|
|
|
2,393 |
|
|
2.12 |
% |
Convertible notes, net |
|
444 |
|
|
|
2 |
|
|
1.76 |
% |
|
|
96,621 |
|
|
|
598 |
|
|
2.45 |
% |
|
|
216,762 |
|
|
|
1,322 |
|
|
2.39 |
% |
Subordinated debentures |
|
103,429 |
|
|
|
2,738 |
|
|
10.36 |
% |
|
|
103,123 |
|
|
|
2,551 |
|
|
9.79 |
% |
|
|
102,182 |
|
|
|
1,614 |
|
|
6.18 |
% |
Total interest bearing liabilities |
$ |
13,308,663 |
|
|
$ |
140,415 |
|
|
4.19 |
% |
|
$ |
13,762,922 |
|
|
$ |
136,495 |
|
|
3.98 |
% |
|
$ |
10,493,971 |
|
|
$ |
35,996 |
|
|
1.36 |
% |
Noninterest bearing demand deposits |
|
4,312,117 |
|
|
|
|
|
|
|
4,366,868 |
|
|
|
|
|
|
|
5,719,213 |
|
|
|
|
|
|||||||||
Total funding liabilities/cost of funds |
$ |
17,620,780 |
|
|
|
|
3.16 |
% |
|
$ |
18,129,790 |
|
|
|
|
3.02 |
% |
|
$ |
16,213,184 |
|
|
|
|
0.88 |
% |
||||||
Net interest income/net interest spread |
|
|
$ |
135,378 |
|
|
1.58 |
% |
|
|
|
$ |
130,689 |
|
|
1.55 |
% |
|
|
|
$ |
153,186 |
|
|
2.95 |
% |
||||||
Net interest margin |
|
|
|
|
2.83 |
% |
|
|
|
|
|
2.70 |
% |
|
|
|
|
|
3.49 |
% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cost of deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest bearing demand deposits |
$ |
4,312,117 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
4,366,868 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
5,719,213 |
|
|
$ |
— |
|
|
— |
% |
Interest bearing deposits |
|
11,395,468 |
|
|
|
117,854 |
|
|
4.10 |
% |
|
|
11,385,914 |
|
|
|
109,724 |
|
|
3.87 |
% |
|
|
9,726,190 |
|
|
|
30,667 |
|
|
1.25 |
% |
Total deposits |
$ |
15,707,585 |
|
|
$ |
117,854 |
|
|
2.98 |
% |
|
$ |
15,752,782 |
|
|
$ |
109,724 |
|
|
2.79 |
% |
|
$ |
15,445,403 |
|
|
$ |
30,667 |
|
|
0.79 |
% |
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) |
|||||||||||||||||||||
|
Nine Months Ended |
||||||||||||||||||||
|
9/30/2023 |
9/30/2022 |
|||||||||||||||||||
|
|
Interest |
Annualized |
|
Interest |
Annualized |
|||||||||||||||
|
Average |
Income/ |
Average |
Average |
Income/ |
Average |
|||||||||||||||
|
Balance |
Expense |
Yield/Cost |
Balance |
Expense |
Yield/Cost |
|||||||||||||||
INTEREST EARNING ASSETS: |
|
|
|
|
|
|
|||||||||||||||
Loans, including loans held for sale |
$ |
14,961,058 |
$ |
671,543 |
6.00 |
% |
$ |
14,378,774 |
$ |
452,774 |
4.21 |
% |
|||||||||
Investment securities |
|
2,255,839 |
|
|
47,665 |
|
2.83 |
% |
|
2,469,858 |
|
|
37,462 |
|
2.03 |
% |
|||||
Interest earning cash and deposits at other banks |
|
1,531,561 |
|
|
58,332 |
|
5.09 |
% |
|
133,745 |
|
|
352 |
|
0.35 |
% |
|||||
FHLB stock and other investments |
|
47,135 |
|
|
2,114 |
|
6.00 |
% |
|
63,542 |
|
|
1,290 |
|
2.71 |
% |
|||||
Total interest earning assets |
$ |
18,795,593 |
|
$ |
779,654 |
|
5.55 |
% |
$ |
17,045,919 |
|
$ |
491,878 |
|
3.86 |
% |
|||||
|
|
|
|
|
|
|
|||||||||||||||
INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|||||||||||||||
Deposits: |
|
|
|
|
|
|
|||||||||||||||
Money market and interest bearing demand |
$ |
4,603,479 |
|
$ |
112,349 |
|
3.26 |
% |
$ |
6,360,040 |
|
$ |
33,970 |
|
0.71 |
% |
|||||
Savings deposits |
|
268,145 |
|
|
3,741 |
|
1.87 |
% |
|
322,058 |
|
|
2,834 |
|
1.18 |
% |
|||||
Time deposits |
|
6,436,645 |
|
|
203,836 |
|
4.23 |
% |
|
2,683,217 |
|
|
14,759 |
|
0.74 |
% |
|||||
Total interest bearing deposits |
|
11,308,269 |
|
|
319,926 |
|
3.78 |
% |
|
9,365,315 |
|
|
51,563 |
|
0.74 |
% |
|||||
FHLB and FRB borrowings |
|
1,558,493 |
|
|
50,141 |
|
4.30 |
% |
|
423,875 |
|
|
4,537 |
|
1.43 |
% |
|||||
Convertible notes, net |
|
103,933 |
|
|
1,922 |
|
2.44 |
% |
|
216,538 |
|
|
3,967 |
|
2.42 |
% |
|||||
Subordinated debentures |
|
103,117 |
|
|
7,720 |
|
9.87 |
% |
|
101,882 |
|
|
3,911 |
|
5.06 |
% |
|||||
Total interest bearing liabilities |
$ |
13,073,812 |
|
$ |
379,709 |
|
3.88 |
% |
$ |
10,107,610 |
|
$ |
63,978 |
|
0.85 |
% |
|||||
Noninterest bearing demand deposits |
|
4,445,740 |
|
|
|
|
5,702,734 |
|
|
|
|||||||||||
Total funding liabilities/cost of funds |
$ |
17,519,552 |
|
|
2.90 |
% |
$ |
15,810,344 |
|
|
0.54 |
% |
|||||||||
Net interest income/net interest spread |
|
$ |
399,945 |
|
1.67 |
% |
|
$ |
427,900 |
|
3.01 |
% |
|||||||||
Net interest margin |
|
|
2.84 |
% |
|
|
3.36 |
% |
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
Cost of deposits: |
|
|
|
|
|
|
|||||||||||||||
Noninterest bearing demand deposits |
$ |
4,445,740 |
|
$ |
— |
|
— |
% |
$ |
5,702,734 |
|
$ |
— |
|
— |
% |
|||||
Interest bearing deposits |
|
11,308,269 |
|
|
319,926 |
|
3.78 |
% |
|
9,365,315 |
|
|
51,563 |
|
0.74 |
% |
|||||
Total deposits |
$ |
15,754,009 |
|
$ |
319,926 |
|
2.72 |
% |
$ |
15,068,049 |
|
$ |
51,563 |
|
0.46 |
% |
|||||
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) |
||||||||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||||||||
AVERAGE BALANCES: |
9/30/2023 |
|
6/30/2023 |
|
% change |
|
9/30/2022 |
|
% change |
|
9/30/2023 |
|
9/30/2022 |
|
% change |
|||||||||||||
Loans, including loans held for sale |
$ |
14,550,106 |
|
$ |
15,105,212 |
|
(4 |
)% |
|
$ |
14,925,298 |
|
(3 |
)% |
|
$ |
14,961,058 |
|
$ |
14,378,774 |
|
4 |
% |
|||||
Investment securities |
|
2,275,133 |
|
|
|
2,243,614 |
|
|
1 |
% |
|
|
2,366,696 |
|
|
(4 |
)% |
|
|
2,255,839 |
|
|
|
2,469,858 |
|
|
(9 |
)% |
Interest earning cash and deposits at other banks |
|
2,106,469 |
|
|
|
1,996,924 |
|
|
5 |
% |
|
|
54,870 |
|
|
3739 |
% |
|
|
1,531,561 |
|
|
|
133,745 |
|
|
1045 |
% |
Interest earning assets |
|
18,979,024 |
|
|
|
19,392,794 |
|
|
(2 |
)% |
|
|
17,399,718 |
|
|
9 |
% |
|
|
18,795,593 |
|
|
|
17,045,919 |
|
|
10 |
% |
Total assets |
|
20,059,304 |
|
|
|
20,468,810 |
|
|
(2 |
)% |
|
|
18,428,874 |
|
|
9 |
% |
|
|
19,875,322 |
|
|
|
18,018,588 |
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest bearing deposits |
|
11,395,468 |
|
|
|
11,385,914 |
|
|
— |
% |
|
|
9,726,190 |
|
|
17 |
% |
|
|
11,308,269 |
|
|
|
9,365,315 |
|
|
21 |
% |
Interest bearing liabilities |
|
13,308,663 |
|
|
|
13,762,922 |
|
|
(3 |
)% |
|
|
10,493,971 |
|
|
27 |
% |
|
|
13,073,812 |
|
|
|
10,107,610 |
|
|
29 |
% |
Noninterest bearing demand deposits |
|
4,312,117 |
|
|
|
4,366,868 |
|
|
(1 |
)% |
|
|
5,719,213 |
|
|
(25 |
)% |
|
|
4,445,740 |
|
|
|
5,702,734 |
|
|
(22 |
)% |
Stockholders’ equity |
|
2,079,092 |
|
|
|
2,072,859 |
|
|
— |
% |
|
|
2,032,362 |
|
|
2 |
% |
|
|
2,066,157 |
|
|
|
2,046,351 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
LOAN PORTFOLIO COMPOSITION: |
9/30/2023 |
|
6/30/2023 |
|
% change |
|
9/30/2022 |
|
% change |
|
|
|
|
|
|
|||||||||||||
Commercial real estate (“CRE”) loans |
$ |
8,972,886 |
|
|
$ |
9,192,160 |
|
|
(2 |
)% |
|
$ |
9,504,893 |
|
|
(6 |
)% |
|
|
|
|
|
|
|||||
Commercial and industrial (“C&I”) loans |
|
4,450,341 |
|
|
|
4,805,126 |
|
|
(7 |
)% |
|
|
5,124,421 |
|
|
(13 |
)% |
|
|
|
|
|
|
|||||
Residential mortgage and other loans |
|
882,966 |
|
|
|
867,524 |
|
|
2 |
% |
|
|
861,873 |
|
|
2 |
% |
|
|
|
|
|
|
|||||
Loans receivable |
|
14,306,193 |
|
|
|
14,864,810 |
|
|
(4 |
)% |
|
|
15,491,187 |
|
|
(8 |
)% |
|
|
|
|
|
|
|||||
Allowance for credit losses |
|
(158,809 |
) |
|
|
(172,996 |
) |
|
(8 |
)% |
|
|
(160,561 |
) |
|
(1 |
)% |
|
|
|
|
|
|
|||||
Loans receivable, net |
$ |
14,147,384 |
|
|
$ |
14,691,814 |
|
|
(4 |
)% |
|
$ |
15,330,626 |
|
|
(8 |
)% |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
CRE LOANS BY PROPERTY TYPE: |
9/30/2023 |
|
6/30/2023 |
|
% change |
|
9/30/2022 |
|
% change |
|
|
|
|
|
|
|||||||||||||
Multi-tenant retail |
$ |
1,745,430 |
|
|
$ |
1,778,068 |
|
|
(2 |
)% |
|
$ |
1,904,132 |
|
|
(8 |
)% |
|
|
|
|
|
|
|||||
Hotels/motels |
|
826,732 |
|
|
|
868,286 |
|
|
(5 |
)% |
|
|
1,091,047 |
|
|
(24 |
)% |
|
|
|
|
|
|
|||||
Gas stations and car washes |
|
1,037,621 |
|
|
|
1,042,290 |
|
|
— |
% |
|
|
1,056,217 |
|
|
(2 |
)% |
|
|
|
|
|
|
|||||
Mixed-use facilities |
|
813,571 |
|
|
|
834,948 |
|
|
(3 |
)% |
|
|
825,289 |
|
|
(1 |
)% |
|
|
|
|
|
|
|||||
Industrial warehouses |
|
1,254,643 |
|
|
|
1,301,075 |
|
|
(4 |
)% |
|
|
1,271,104 |
|
|
(1 |
)% |
|
|
|
|
|
|
|||||
Multifamily |
|
1,234,934 |
|
|
|
1,257,971 |
|
|
(2 |
)% |
|
|
1,199,320 |
|
|
3 |
% |
|
|
|
|
|
|
|||||
Single-tenant retail |
|
671,921 |
|
|
|
690,418 |
|
|
(3 |
)% |
|
|
728,432 |
|
|
(8 |
)% |
|
|
|
|
|
|
|||||
Office |
|
454,695 |
|
|
|
463,998 |
|
|
(2 |
)% |
|
|
432,586 |
|
|
5 |
% |
|
|
|
|
|
|
|||||
All other |
|
933,339 |
|
|
|
955,106 |
|
|
(2 |
)% |
|
|
996,766 |
|
|
(6 |
)% |
|
|
|
|
|
|
|||||
Total CRE loans |
$ |
8,972,886 |
|
|
$ |
9,192,160 |
|
|
(2 |
)% |
|
$ |
9,504,893 |
|
|
(6 |
)% |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
DEPOSIT COMPOSITION: |
9/30/2023 |
|
6/30/2023 |
|
% change |
|
9/30/2022 |
|
% change |
|
|
|
|
|
|
|||||||||||||
Noninterest bearing demand deposits |
$ |
4,249,788 |
|
|
$ |
4,229,247 |
|
|
— |
% |
|
$ |
5,590,952 |
|
|
(24 |
)% |
|
|
|
|
|
|
|||||
Money market and interest bearing demand |
|
4,424,918 |
|
|
|
4,188,584 |
|
|
6 |
% |
|
|
5,885,093 |
|
|
(25 |
)% |
|
|
|
|
|
|
|||||
Savings deposits |
|
430,765 |
|
|
|
224,495 |
|
|
92 |
% |
|
|
317,841 |
|
|
36 |
% |
|
|
|
|
|
|
|||||
Time deposits |
|
6,634,388 |
|
|
|
6,977,026 |
|
|
(5 |
)% |
|
|
3,708,323 |
|
|
79 |
% |
|
|
|
|
|
|
|||||
Total deposits |
$ |
15,739,859 |
|
|
$ |
15,619,352 |
|
|
1 |
% |
|
$ |
15,502,209 |
|
|
2 |
% |
|
|
|
|
|
|
|||||
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands, except share and per share data) |
|||||||||||||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|
|
||||||||||||||||||
NEW LOAN ORIGINATIONS: |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
|
|
|
|
|
|
|
|
||||||||||||||
CRE |
$ |
46,011 |
|
|
$ |
115,444 |
|
|
$ |
500,826 |
|
|
|
|
|
|
|
|
|
||||||||
C&I |
|
201,420 |
|
|
|
318,063 |
|
|
|
732,341 |
|
|
|
|
|
|
|
|
|
||||||||
SBA loans |
|
48,987 |
|
|
|
38,051 |
|
|
|
47,428 |
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage and other loans |
|
32,920 |
|
|
|
19,016 |
|
|
|
68,099 |
|
|
|
|
|
|
|
|
|
||||||||
Total new loan originations |
$ |
329,338 |
|
|
$ |
490,574 |
|
|
$ |
1,348,694 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
CAPITAL & CAPITAL RATIOS: |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
|
|
|
|
|
|
|
|
||||||||||||||
Total stockholders’ equity |
$ |
2,030,424 |
|
|
$ |
2,067,998 |
|
|
$ |
1,975,725 |
|
|
|
|
|
|
|
|
|
||||||||
Total capital |
$ |
2,105,754 |
|
|
$ |
2,102,625 |
|
|
$ |
2,000,653 |
|
|
|
|
|
|
|
|
|
||||||||
Common equity tier 1 ratio |
|
11.67 |
% |
|
|
11.05 |
% |
|
|
10.32 |
% |
|
|
|
|
|
|
|
|
||||||||
Tier 1 capital ratio |
|
12.32 |
% |
|
|
11.68 |
% |
|
|
10.92 |
% |
|
|
|
|
|
|
|
|
||||||||
Total capital ratio |
|
13.23 |
% |
|
|
12.64 |
% |
|
|
11.72 |
% |
|
|
|
|
|
|
|
|
||||||||
Leverage ratio |
|
9.83 |
% |
|
|
9.57 |
% |
|
|
10.25 |
% |
|
|
|
|
|
|
|
|
||||||||
Total risk weighted assets |
$ |
15,912,742 |
|
|
$ |
16,640,323 |
|
|
$ |
17,065,355 |
|
|
|
|
|
|
|
|
|
||||||||
Book value per common share |
$ |
16.92 |
|
|
$ |
17.23 |
|
|
$ |
16.54 |
|
|
|
|
|
|
|
|
|
||||||||
TCE per share (1) |
$ |
13.01 |
|
|
$ |
13.32 |
|
|
$ |
12.60 |
|
|
|
|
|
|
|
|
|
||||||||
TCE ratio (1) |
|
7.96 |
% |
|
|
8.04 |
% |
|
|
8.09 |
% |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(1) TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10. |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES CHANGES: |
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
9/30/2023 |
|
9/30/2022 |
||||||||||||||
Balance at beginning of period |
$ |
172,996 |
|
|
$ |
163,544 |
|
|
$ |
162,359 |
|
|
$ |
160,561 |
|
|
$ |
151,580 |
|
|
$ |
162,359 |
|
|
$ |
140,550 |
|
ASU 2022-02 day 1 adoption impact |
|
— |
|
|
|
— |
|
|
|
(407 |
) |
|
|
— |
|
|
|
— |
|
|
|
(407 |
) |
|
|
— |
|
Provision for credit losses |
|
16,800 |
|
|
|
8,900 |
|
|
|
1,700 |
|
|
|
8,200 |
|
|
|
9,200 |
|
|
|
27,400 |
|
|
|
1,400 |
|
Recoveries |
|
2,938 |
|
|
|
1,531 |
|
|
|
387 |
|
|
|
3,222 |
|
|
|
331 |
|
|
|
4,856 |
|
|
|
21,376 |
|
Charge offs |
|
(33,925 |
) |
|
|
(979 |
) |
|
|
(495 |
) |
|
|
(9,624 |
) |
|
|
(550 |
) |
|
|
(35,399 |
) |
|
|
(2,765 |
) |
Balance at end of period |
$ |
158,809 |
|
|
$ |
172,996 |
|
|
$ |
163,544 |
|
|
$ |
162,359 |
|
|
$ |
160,561 |
|
|
$ |
158,809 |
|
|
$ |
160,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
|
|
|
||||||||||||||
Allowance for unfunded loan commitments |
$ |
3,143 |
|
|
$ |
3,081 |
|
|
$ |
2,971 |
|
|
$ |
1,351 |
|
|
$ |
1,231 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||
NET LOAN CHARGE OFFS (RECOVERIES): |
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
9/30/2023 |
|
9/30/2022 |
||||||||||||||
CRE loans |
$ |
(2,227 |
) |
|
$ |
438 |
|
|
$ |
(109 |
) |
|
$ |
2,022 |
|
|
$ |
9 |
|
|
$ |
(1,898 |
) |
|
$ |
(16,917 |
) |
C&I loans |
|
33,145 |
|
|
|
(1,091 |
) |
|
|
196 |
|
|
|
4,174 |
|
|
|
115 |
|
|
|
32,250 |
|
|
|
(1,875 |
) |
Residential mortgage and other loans |
|
69 |
|
|
|
101 |
|
|
|
21 |
|
|
|
206 |
|
|
|
95 |
|
|
|
191 |
|
|
|
181 |
|
Net loan charge offs (recoveries) |
$ |
30,987 |
|
|
$ |
(552 |
) |
|
$ |
108 |
|
|
$ |
6,402 |
|
|
$ |
219 |
|
|
$ |
30,543 |
|
|
$ |
(18,611 |
) |
Net charge offs (recoveries)/average loans receivable (annualized) |
|
0.85 |
% |
|
|
(0.01 |
)% |
|
|
— |
% |
|
|
0.17 |
% |
|
|
0.01 |
% |
|
|
0.27 |
% |
|
|
(0.17 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
NONPERFORMING ASSETS: |
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
||||||||||
Loans on nonaccrual status (1) |
$ |
39,081 |
|
|
$ |
61,252 |
|
|
$ |
78,861 |
|
|
$ |
49,687 |
|
|
$ |
64,571 |
|
Accruing delinquent loans past due 90 days or more |
|
21,579 |
|
|
|
15,182 |
|
|
|
364 |
|
|
|
401 |
|
|
|
5,306 |
|
Accruing troubled debt restructured loans (2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,931 |
|
|
|
25,631 |
|
Total nonperforming loans |
|
60,660 |
|
|
|
76,434 |
|
|
|
79,225 |
|
|
|
67,019 |
|
|
|
95,508 |
|
Other real estate owned (“OREO”) |
|
1,043 |
|
|
|
938 |
|
|
|
938 |
|
|
|
2,418 |
|
|
|
1,480 |
|
Total nonperforming assets |
$ |
61,703 |
|
|
$ |
77,372 |
|
|
$ |
80,163 |
|
|
$ |
69,437 |
|
|
$ |
96,988 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming assets/total assets |
|
0.31 |
% |
|
|
0.38 |
% |
|
|
0.39 |
% |
|
|
0.36 |
% |
|
|
0.51 |
% |
Nonperforming assets/loans receivable & OREO |
|
0.43 |
% |
|
|
0.52 |
% |
|
|
0.53 |
% |
|
|
0.45 |
% |
|
|
0.63 |
% |
Nonperforming assets/total capital |
|
3.04 |
% |
|
|
3.74 |
% |
|
|
3.89 |
% |
|
|
3.44 |
% |
|
|
4.91 |
% |
Nonperforming loans/loans receivable |
|
0.42 |
% |
|
|
0.51 |
% |
|
|
0.53 |
% |
|
|
0.44 |
% |
|
|
0.62 |
% |
Nonaccrual loans/loans receivable |
|
0.27 |
% |
|
|
0.41 |
% |
|
|
0.52 |
% |
|
|
0.32 |
% |
|
|
0.42 |
% |
Allowance for credit losses/loans receivable |
|
1.11 |
% |
|
|
1.16 |
% |
|
|
1.09 |
% |
|
|
1.05 |
% |
|
|
1.04 |
% |
Allowance for credit losses/nonperforming loans |
|
261.80 |
% |
|
|
226.33 |
% |
|
|
206.43 |
% |
|
|
242.26 |
% |
|
|
168.11 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $12.1 million, $11.9 million, $7.6 million, $9.8 million, and $9.9 million, at September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively. |
|||||||||||||||||||
(2) The Company adopted ASU 2022-02 in 2023, which eliminated the concept of TDR from GAAP; therefore, accruing TDR loans are no longer included in nonperforming loans. |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
NONACCRUAL LOANS BY TYPE: |
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
||||||||||
CRE loans |
$ |
26,687 |
|
|
$ |
29,270 |
|
|
$ |
44,376 |
|
|
$ |
33,915 |
|
|
$ |
47,807 |
|
C&I loans |
|
4,234 |
|
|
|
23,042 |
|
|
|
26,191 |
|
|
|
5,620 |
|
|
|
7,675 |
|
Residential mortgage and other loans |
|
8,160 |
|
|
|
8,940 |
|
|
|
8,294 |
|
|
|
10,152 |
|
|
|
9,089 |
|
Total nonaccrual loans |
$ |
39,081 |
|
|
$ |
61,252 |
|
|
$ |
78,861 |
|
|
$ |
49,687 |
|
|
$ |
64,571 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE: |
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
||||||||||
30 - 59 days past due |
$ |
2,906 |
|
$ |
9,295 |
|
$ |
7,662 |
|
$ |
7,049 |
|
$ |
13,092 |
|||||
60 - 89 days past due |
|
506 |
|
|
|
178 |
|
|
|
249 |
|
|
|
2,243 |
|
|
|
4,933 |
|
Total accruing delinquent loans 30-89 days past due |
$ |
3,412 |
|
|
$ |
9,473 |
|
|
$ |
7,911 |
|
|
$ |
9,292 |
|
|
$ |
18,025 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE: |
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
||||||||||
CRE loans |
$ |
611 |
|
|
$ |
7,339 |
|
|
$ |
3,652 |
|
|
$ |
4,115 |
|
|
$ |
9,694 |
|
C&I loans |
|
1,168 |
|
|
|
990 |
|
|
|
419 |
|
|
|
3,300 |
|
|
|
6,165 |
|
Residential mortgage and other loans |
|
1,633 |
|
|
|
1,144 |
|
|
|
3,840 |
|
|
|
1,877 |
|
|
|
2,166 |
|
Total accruing delinquent loans 30-89 days past due |
$ |
3,412 |
|
|
$ |
9,473 |
|
|
$ |
7,911 |
|
|
$ |
9,292 |
|
|
$ |
18,025 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
CRITICIZED LOANS: |
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
||||||||||
Special mention loans |
$ |
186,600 |
|
|
$ |
210,806 |
|
|
$ |
166,472 |
|
|
$ |
157,263 |
|
|
$ |
79,399 |
|
Substandard loans |
|
174,161 |
|
|
|
134,203 |
|
|
|
138,224 |
|
|
|
104,073 |
|
|
|
204,713 |
|
Total criticized loans |
$ |
360,761 |
|
|
$ |
345,009 |
|
|
$ |
304,696 |
|
|
$ |
261,336 |
|
|
$ |
284,112 |
|
Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands, except share and per share data) |
|||||||||||||||||||
Reconciliation of GAAP financial measures to non-GAAP financial measures |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below. | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
RETURN ON AVERAGE TANGIBLE COMMON EQUITY |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
|
9/30/2023 |
|
9/30/2022 |
||||||||||
Average stockholders’ equity |
$ |
2,079,092 |
|
|
$ |
2,072,859 |
|
|
$ |
2,032,362 |
|
|
$ |
2,066,157 |
|
|
$ |
2,046,351 |
|
Less: Average goodwill and core deposit intangible assets, net |
|
(469,079 |
) |
|
|
(469,515 |
) |
|
|
(470,941 |
) |
|
|
(469,525 |
) |
|
|
(471,424 |
) |
Average TCE |
$ |
1,610,013 |
|
|
$ |
1,603,344 |
|
|
$ |
1,561,421 |
|
|
$ |
1,596,632 |
|
|
$ |
1,574,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
30,049 |
|
|
$ |
38,022 |
|
|
$ |
53,748 |
|
|
$ |
107,192 |
|
|
$ |
166,574 |
|
ROTCE (annualized) |
|
7.47 |
% |
|
|
9.49 |
% |
|
|
13.77 |
% |
|
|
8.95 |
% |
|
|
14.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON EQUITY |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
|
|
|
|
|
|
|
|
||||||
Total stockholders’ equity |
$ |
2,030,424 |
|
|
$ |
2,067,998 |
|
|
$ |
1,975,725 |
|
|
|
|
|
|
|
|
|
Less: Goodwill and core deposit intangible assets, net |
|
(468,832 |
) |
|
|
(469,280 |
) |
|
|
(470,662 |
) |
|
|
|
|
|
|
|
|
TCE |
$ |
1,561,592 |
|
|
$ |
1,598,718 |
|
|
$ |
1,505,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
20,076,364 |
|
|
$ |
20,366,138 |
|
|
$ |
19,083,388 |
|
|
|
|
|
|
|
|
|
Less: Goodwill and core deposit intangible assets, net |
|
(468,832 |
) |
|
|
(469,280 |
) |
|
|
(470,662 |
) |
|
|
|
|
|
|
|
|
Tangible assets |
$ |
19,607,532 |
|
|
$ |
19,896,858 |
|
|
$ |
18,612,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCE ratio |
|
7.96 |
% |
|
|
8.04 |
% |
|
|
8.09 |
% |
|
|
|
|
|
|
|
|
Common shares outstanding |
|
120,026,220 |
|
|
|
120,014,888 |
|
|
|
119,479,253 |
|
|
|
|
|
|
|
|
|
TCE per share |
$ |
13.01 |
|
|
$ |
13.32 |
|
|
$ |
12.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
PRE-PROVISION NET REVENUE |
9/30/2023 |
|
6/30/2023 |
|
9/30/2022 |
|
9/30/2023 |
|
9/30/2022 |
||||||||||
Net interest income before provision for credit losses |
$ |
135,378 |
|
|
$ |
130,689 |
|
|
$ |
153,186 |
|
|
$ |
399,945 |
|
|
$ |
427,900 |
|
Noninterest income |
|
8,305 |
|
|
|
17,014 |
|
|
|
13,355 |
|
|
|
36,297 |
|
|
|
39,287 |
|
Revenue |
|
143,683 |
|
|
|
147,703 |
|
|
|
166,541 |
|
|
|
436,242 |
|
|
|
467,187 |
|
Less: Noninterest expense |
|
86,873 |
|
|
|
87,333 |
|
|
|
83,914 |
|
|
|
264,560 |
|
|
|
239,652 |
|
PPNR |
$ |
56,810 |
|
|
$ |
60,370 |
|
|
$ |
82,627 |
|
|
$ |
171,682 |
|
|
$ |
227,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
$ |
20,059,304 |
|
|
$ |
20,468,810 |
|
|
$ |
18,428,874 |
|
|
$ |
19,875,322 |
|
|
$ |
18,018,588 |
|
ROA (PPNR) (annualized) |
|
1.13 |
% |
|
|
1.18 |
% |
|
|
1.79 |
% |
|
|
1.15 |
% |
|
|
1.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders’ equity |
|
2,079,092 |
|
|
|
2,072,859 |
|
|
|
2,032,362 |
|
|
|
2,066,157 |
|
|
|
2,046,351 |
|
ROE (PPNR) (annualized) |
|
10.93 |
% |
|
|
11.65 |
% |
|
|
16.26 |
% |
|
|
11.08 |
% |
|
|
14.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|