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Hope Bancorp News Release HOPE BANCORP REPORTS 2021 FIRST QUARTER FINANCIAL RESULTS LOS ANGELES - April 27 , 2021 - Hope Bancorp , Inc. ( the “ Company ” ) ( NASDAQ : HOPE ) , the holding company of Bank of Hope ( the " Bank ” ) , today reported unaudited financial results for its first quarter ended March 31 , 2021 . For the three months ended March 31 , 2021 , net income totaled $ 43.7 million , or $ 0.35 per diluted common share , representing an increase of 54 % from $ 28.3 million , or $ 0.23 per diluted common share in the fourth quarter of 2020 and an increase of 68 % from $ 26.0 million , or $ 0.21 per diluted common share , in the year - ago first quarter . " First quarter results were solid , reflecting the continued benefits of the operational improvements that we implemented in 2020 , " said Kevin S. Kim , Chairman , President and Chief Executive Officer of Hope Bancorp , Inc. " We continued to support our customers in this pandemic - challenged business environment by providing $ 305 million in the second round of PPP funding , which contributed to new loan originations totaling $ 847 million in the first quarter . Noninterest bearing deposits increased 13 % from year - end and accounted for a record high 38 % of total deposits at March 31 , 2021. This contributed to a sixth consecutive quarter of declining cost of deposits , which supported another quarter of net interest margin expansion for the Company . Additionally , we continued to proactively manage our expenses which resulted in noninterest expense to average assets improving to 1.65 % from 1.69 % in the preceding quarter . " During the first quarter , we saw an expected increase in our criticized assets due to the impact COVID - 19 has had on the travel industry , but remain well reserved given the considerable build up of our allowance for credit losses last year in anticipation of the eventual migration of these credits in the normal course of the credit administration process . We are , however , pleased to see the continued improvements in the economy , which supported a significantly lower provision expense this quarter and contributed to a 54 % increase in net income quarter - over - quarter . With the vaccination campaign in the U.S. well underway and the COVID - related restrictions gradually being lifted , we have greater confidence in our ability to deliver enhanced performance as the year proceeds . " Q1 2021 Highlights • • • • • Net interest income before provision for credit losses increased 2 % quarter - over - quarter to $ 122.6 million , benefiting from reduced interest expense due to lower cost of deposits . Net interest margin expanded 4 basis points quarter - over - quarter . Noninterest bearing demand deposits increased 13 % quarter - over - quarter and increased as a percentage of total deposits to 38 % from 34 % at year - end 2020 . Cost of interest bearing deposits decreased 15 basis points and total cost of deposits decreased 12 basis points quarter - over - quarter continuing a six - quarter trend of declining deposit costs . Loan originations totaled $ 847.1 million , including a second round of PPP fundings of $ 304.7 million , and contributed to a 1.0 % increase in loans receivable quarter - over - quarter , or 4.1 % annualized . Efficiency ratio improved to 53.61 % from 53.77 % quarter - over - quarter and noninterest expense to average assets improved to 1.65 % from 1.69 % . Net income increased 54 % quarter - over - quarter and totaled $ 43.7 million , or $ 0.35 per diluted common share . ( more )