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Hope Bancorp News Release HOPE BANCORP REPORTS 2021 SECOND QUARTER FINANCIAL RESULTS LOS ANGELES - July 20 , 2021 - Hope Bancorp , Inc. ( the “ Company ” ) ( NASDAQ : HOPE ) , the holding company of Bank of Hope ( the " Bank ” ) , today reported unaudited financial results for its second quarter and six months ended June 30 , 2021 . For the three months ended June 30 , 2021 , net income increased 23 % to $ 53.8 million , or $ 0.43 per diluted common share , from $ 43.7 million , or $ 0.35 per diluted common share , in the preceding first quarter and increased 101 % from $ 26.8 million , or $ 0.22 per diluted common share , in the year - ago second quarter . " Second quarter results underscore the sound management of our operations as the economy gradually recovers from the impact of the COVID - 19 pandemic , ” said Kevin S. Kim , Chairman , President and Chief Executive Officer of Hope Bancorp , Inc. " The composition of our deposits continued to improve with meaningful increases in our lower - cost deposit categories , and our cost of interest bearing deposits declined another 8 basis points quarter - over - quarter . Together with higher average yield on loans , this supported another quarter of net interest margin expansion . After five quarters of significant reserve build under the CECL methodology , we recorded a negative provision for credit losses of $ 7.0 million driven largely by the improved macroeconomic factors . We also sold $ 30 million of SBA 7 ( a ) loans given the near record - high premiums available in the secondary markets , and recorded a gain on sale of $ 2.4 million . All of these factors contributed to a 23 % quarter - over - quarter increase in net income of $ 53.8 million for the 2021 second quarter . " Loan originations for the quarter were also strong at a record high $ 894 million and reflected a 61 % increase from the preceding first quarter when excluding the second round of PPP originations . However , a considerable decrease in warehouse line utilizations reflecting industry trends , a strategic sale of $ 119 million of higher - risk hotel / motel loans , PPP loan forgiveness of $ 164 million , and residential mortgage and SBA 7 ( a ) loan sales contributed to a 2 % quarter- over - quarter decrease in loans receivable . While some of these headwinds to net loan growth are expected to persist near- term , we have a robust loan pipeline supported by strong macroeconomic forecasts , and we believe we are well positioned to deliver enhanced profitability for 2021 , ” said Kim . Q2 2021 Highlights • • • Net interest income before provision for credit losses increased 3 % quarter - over - quarter to $ 126.6 million . Net interest margin expanded 5 basis points quarter - over - quarter , largely reflecting an increase in the average yield on loans and lower cost of deposits . Noninterest bearing demand deposits increased 4 % quarter - over - quarter and accounted for 38 % of total deposits . Cost of interest bearing deposits decreased 8 basis points and total cost of deposits decreased 6 basis points quarter- over - quarter marking the seventh consecutive quarter of declining deposit costs . • Company recorded a negative provision for credit losses of $ 7.0 million . • Net income increased 23 % quarter - over - quarter and totaled $ 53.8 million , or $ 0.43 per diluted common share . • Pre - tax pre - provision income increased 6 % quarter - over - quarter to $ 64.5 million . • Return on average assets increased to 1.25 % from 1.02 % in Q1 2021 , and return on average equity increased to 10.41 % from 8.53 % . Loan originations increased to a record high $ 894.1 million from $ 847.1 million in the first quarter of 2021 . ( more )