Page 1

EX - 99.1 2 hope - 09302021ex991.htm EX - 99.1 Hope Bancorp News Release HOPE BANCORP REPORTS 2021 THIRD QUARTER FINANCIAL RESULTS LOS ANGELES - October 25 , 2021 - 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 , 2021 . For the three months ended September 30 , 2021 , net income increased 3 % to $ 55.5 million , or $ 0.45 per diluted common share , from $ 53.8 million , or $ 0.43 per diluted common share , in the preceding second quarter and increased 82 % from $ 30.5 million , or $ 0.25 per diluted common share , in the year - ago third quarter . " We continued to deliver improved operational performance and profitability in the third quarter of 2021 , but more importantly , we took strategic actions to de - risk the loan portfolio which led to significant improvements in asset quality and positioned the Company for a return to organic loan growth in the quarters ahead , ” said Kevin S. Kim , Chairman , President and Chief Executive Officer of Hope Bancorp , Inc. “ Business development was the strongest it has ever been topping a record $ 1.0 billion in new loan production and included record high SBA origination volumes of $ 115.0 million . While SBA PPP loan forgiveness and strategic loan sales of higher - risk credits mitigated loan growth again this quarter , we believe these headwinds are now largely behind us and have renewed our focus on growth and expansion . Deposits at quarter - end totaled a record high $ 15.1 billion driven primarily by growth in noninterest bearing demand deposits , which led to an eighth consecutive quarter of declining deposit costs . Benefiting from the strategic actions taken during the quarter , we posted meaningful improvements in our credit quality with nonaccrual loans decreasing 51 % and criticized assets declining 19 % quarter - over - quarter . " With the significant improvements in asset quality this quarter , together with our track record of robust loan production and positive core deposit growth , we believe we are well positioned to drive even stronger performance in the years ahead , ” said Kim . Q3 2021 Highlights • • • • • • • Loan originations increased 13 % quarter - over - quarter to a record high $ 1.01 billion from $ 894.1 million in the second quarter of 2021 . Loans receivable remained at $ 13.42 billion , as record originations were offset by loan sales , SBA PPP loan forgiveness , other payoffs and pay downs and decreases in mortgage warehouse line utilizations . Excluding SBA PPP loan forgiveness and strategic loan sales and transfers to held - for - sale of potentially problematic loans , loans receivable would have increased 3 % quarter - over - quarter or 12 % on an annualized basis . Noninterest bearing demand deposits increased 7 % quarter - over - quarter and accounted for a record 40 % of total deposits , contributing to record high deposits of $ 15.06 billion . Cost of interest bearing deposits decreased 6 basis points and total cost of deposits decreased 4 basis points quarter - over- quarter marking the eighth consecutive quarter of declining deposit costs . Interest income increased 2 % quarter - over - quarter while interest expense declined 8 % , resulting in a 3 % increase in pre- provision net interest income . Net interest margin declined 4 basis points quarter - over - quarter , as the benefit of lower cost of deposits was more than offset by the impact of excess liquidity on the balance sheet . • The Company recorded a negative provision for credit losses of $ 10.0 million . • Net income increased 3 % quarter - over - quarter and totaled $ 55.5 million , or $ 0.45 per diluted common share . ( more )