HOPE BANCORP INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
EX-99.2 - EXHIBIT 99.2 - HOPE BANCORP INC	ex992-12x31x16.htm
8-K - 8-K - HOPE BANCORP INC	hope-12x31x168k.htm

News Release

Contact:

Angie Yang

SVP, Director of Investor Relations &

Corporate Communications

213-251-2219

angie.yang@bankofhope.com

HOPE BANCORP REPORTS 2016 FOURTH QUARTER AND FULL-YEAR

FINANCIAL RESULTS

Q4 2016 Summary:


▪	Loans receivable total $10.54 billion, reflecting a 69% increase year-over-year


▪	Total deposits amount to $10.64 billion, reflecting a 68% increase year-over-year


▪	Total assets amount to $13.44 billion, reflecting a 70% increase year-over-year


▪	Net income totals $40.6 million, or $0.30 per diluted common share, including merger-related expenses of $3.0 million


▪	New loan originations total $465 million

LOS ANGELES - January 24, 2017 - Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its fourth quarter and full year ended December 31, 2016.

The mergers of Wilshire Bancorp, Inc. (“Wilshire”) with and into BBCN Bancorp, Inc. (“BBCN”) and Wilshire Bank with and into BBCN Bank were completed on July 29, 2016, and the combined company began operations under the new banners of Hope Bancorp, Inc. and Bank of Hope effective July 30, 2016. The 2016 fourth quarter financial results reflect the first full quarter of combined operations following the completion of the merger. The full-year financial results reflect seven months of stand-alone operations of the former BBCN and five months of combined operations. As a result, the Company’s 2016 fourth quarter and full-year financial results may not be comparable to financial results in prior periods.

For the three months ended December 31, 2016, net income totaled $40.6 million, or $0.30 per diluted common share, based on 135,585,561 weighted average diluted shares outstanding, and included pre-tax merger-related expenses of $3.0 million. This compares with 2016 third quarter net income of $26.1 million, or $0.22 per diluted common share, based on 116,653,116 weighted average diluted shares outstanding, and included $11.2 million in merger-related expenses. For the 2015 fourth quarter, net income totaled $22.9 million, or $0.29 per diluted common share, based on 79,601,452 weight average diluted shares outstanding, and included merger-related expenses of $1.4 million. Excluding the merger-related expenses, core net income would have been $42.4 million, or $0.31 per diluted common share, for the 2016 fourth quarter, $32.9 million, or $0.28 per diluted common share, for the preceding 2016 third quarter, and $23.7 million, or $0.30 per diluted common share, for the 2015 fourth quarter.

For the full year, net income increased to $113.7 million, or $1.10 per diluted common share, based on 103,530,318 weighted average diluted shares outstanding. This compares with 2015 net income of $92.3 million, or $1.16 per diluted common share, based on 79,611,800 weighted average diluted shares outstanding. Excluding pre-tax merger-related expenses of $16.9 million in 2016 and $1.5 million in 2015, core net income would have been $123.8 million, or $1.20 per diluted common share, for 2016 and $93.2 million, or $1.17 per diluted common share, for 2015.

Net income excluding pre-tax merger-related expenses is a non-GAAP financial measure. Management reviews net income excluding merger-related expenses in evaluating the Company’s overall evaluation of its performance and has included this financial metric in response to market participant interest in the Company’s core earnings performance. The accompanying financial information includes a reconciliation of core net income and earnings per share excluding merger-related expenses.

“2016 was certainly a monumental year for our organization with the formation of the only super regional Korean-American bank in the United States and one that cannot be replicated by our niche peers in terms of size or market presence,” said Kevin S. Kim, President and Chief Executive Officer of Hope Bancorp, Inc. “We continue to make solid progress with the

(more)

integration, having successfully completed the systems conversion and the first phase of branch consolidations during the fourth quarter. With these achievements behind us, we are well on track to achieve the anticipated cost saves from our merger and expect the benefits to be progressively evident in our financial results going forward. While loan originations were lighter than expected for the fourth quarter, we are in the final stage of a transitional period of combining two strong lending forces, which remains intact, and believe we are well positioned to deliver the synergies from the merger.

“Today, Bank of Hope enjoys a significantly stronger competitive position with unrivaled leadership and unparalleled opportunity to cross-sell the most diversified offering of financial products and services among our peers. The definitive agreement announced yesterday to acquire Seattle-based U & I Financial Corp. continues our momentum of establishing dominant leadership in the markets that we operate in. Looking into 2017, we have a clear vision of the bank that we want to become and are confident that we are moving in the right direction to maximize the value proposition that we provide to our customers, employees and shareholders,” said Kim.

Financial Highlights



(dollars in thousands, except per share data) (unaudited)	At or for the Three Months Ended
	12/31/2016			9/30/2016			12/31/2015
Net income	$	40,630		$	26,105		$	22,869
Diluted earnings per share	$	0.30		$	0.22		$	0.29
Net interest income before provision for loan losses	$	117,209		$	103,474		$	71,768
Net interest margin		3.75	%		3.77	%		3.88	%
Noninterest income	$	18,192		$	14,146		$	10,977
Noninterest expense	$	66,731		$	67,846		$	38,938
Net loans receivable	$	10,463,989		$	10,481,221		$	6,171,933
Deposits	$	10,642,035		$	10,702,505		$	6,340,976
Nonaccrual loans ⁽¹⁾	$	40,074		$	40,602		$	40,801
ALLL to loans receivable		0.75	%		0.76	%		1.22	%
ALLL to nonaccrual loans ⁽¹⁾		197.99	%		196.98	%		187.27	%
ALLL to nonperforming assets ^{(1) (2)}		71.32	%		68.38	%		69.34	%
Provision for loan losses	$	800		$	6,500		$	4,900
Net charge offs (recoveries)	$	1,433		$	2,949		$	(398	)
ROA		1.20	%		0.89	%		1.19	%
ROE		8.72	%		6.59	%		9.76	%
Efficiency ratio		49.28	%		57.68	%		47.06	%

⁽¹⁾ Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.9 million, $14.1 million and $18.7 million at December 31, 2016, September 30, 2016, and December 31, 2015, respectively.

⁽²⁾ Nonperforming assets exclude purchased credit-impaired loans totaling $19.6 million, $16.4 million and $12.2 million at December 31, 2016, September 30, 2016, and December 31, 2015, respectively.

Operating Results for the 2016 Fourth Quarter

The comparability of Hope Bancorp’s operating results with past performance is impacted by acquisition accounting adjustments and merger-related expenses associated with past and current acquisitions. The Company provides the following supplemental information to facilitate a better understanding of financial performance. Net interest income and operating income for the three months ended December 31, 2016, September 30, 2016, and December 31, 2015 include the following pre-tax acquisition accounting adjustments and merger-related expenses associated with past and current acquisitions:

(more)

Page 3-3-3 NASDAQ: HOPE



(dollars in thousands) (unaudited)	Three Months Ended
	12/31/2016			9/30/2016			12/31/2015
Accretion on purchased non-impaired loans	$	3,355		$	3,111		$	2,648
Accretion on purchased credit-impaired loans		2,182			1,673			2,206
Amortization of premium on low income housing tax credits		(84	)		(54	)		—
Amortization of premium on acquired FHLB borrowings		449			330			97
Accretion of discount on acquired subordinated debt		(260	)		(190	)		(44	)
Amortization of premium on acquired time deposits and savings		3,478			2,336			28
Total acquisition accounting adjustments	$	9,120		$	7,206		$	4,935
Merger-related expenses		(2,952	)		(11,222	)		(1,438	)
Total	$	6,168		$	(4,016	)	$	3,497

Net Interest Income and Net Interest Margin. Net interest income before provision for loan losses for the 2016 fourth quarter totaled $117.2 million, an increase of 13% over $103.5 million in the preceding 2016 third quarter and an increase of 63% over $71.8 million in the prior-year fourth quarter. The increase in net interest income is primarily attributable to the significantly higher level of interest earning assets following the merger. The 2016 fourth quarter included a full quarter of combined operations; the 2016 third quarter included two months of combined operations and one month of stand-alone BBCN operations; and the year-ago fourth quarter reflects stand-alone BBCN.

The net interest margin (net interest income divided by average interest earning assets) and the impact of acquisition accounting adjustments are summarized in the following table:



	Three Months Ended
	12/31/2016		9/30/2016		change		12/31/2015		change
Net interest margin, excluding the effect of acquisition accounting adjustments	3.45	%	3.48	%	(0.03	)	3.59	%	(0.14	)
Acquisition accounting adjustments	0.30	%	0.29	%	(0.01	)	0.29	%	0.01
Net interest margin	3.75	%	3.77	%	(0.02	)	3.88	%	(0.13	)

The net interest margin for the 2016 fourth quarter was 3.75%, down 2 basis points from the preceding third quarter, but down 13 basis points when compared with the year-ago fourth quarter. On a core basis, excluding the effect of acquisition accounting adjustments, the net interest margin for the 2016 fourth quarter declined by 3 basis points from the preceding third quarter and 14 basis points from the fourth quarter a year ago.

The weighted average yield on loans and the impact of acquisition accounting adjustments are summarized in the following table:



	Three Months Ended
	12/31/2016		9/30/2016		change		12/31/2015		change
Weighted average yield on loans, excluding the effect of acquisition accounting adjustments	4.59	%	4.55	%	0.04		4.64	%	(0.05	)
Acquisition accounting adjustments	0.21	%	0.25	%	(0.04	)	0.35	%	(0.14	)
Weighted average yield on loans	4.80	%	4.80	%	—		4.99	%	(0.19	)

The weighted average yield on loans for the 2016 fourth quarter was steady when compared with the preceding 2016 third quarter, but declined 19 basis points from the year-ago fourth quarter. On a core basis, excluding the effect of acquisition accounting adjustments, the weighted average yield on loans increased 4 basis points from the preceding third quarter, but decreased 5 basis points from the 2015 fourth quarter.

The weighted average yield on new loans originated during the 2016 fourth quarter was 4.15%, compared with 4.03% in the preceding 2016 third quarter and 4.24% in the year-ago fourth quarter.

(more)

Page 4-4-4 NASDAQ: HOPE

The weighted average cost of deposits and the impact of acquisition accounting adjustments are summarized in the following table:



	Three Months Ended
	12/31/2016		9/30/2016		change		12/31/2015		change
Weighted average cost of deposits, excluding the effect of acquisition accounting adjustments	0.68	%	0.64	%	0.04		0.60	%	0.08
Acquisition accounting adjustments	(0.13	)%	(0.08	)%	(0.05	)	—	%	(0.13	)
Weighted average cost of deposits	0.55	%	0.56	%	(0.01	)	0.60	%	(0.05	)

The weighted average cost of deposits for the 2016 fourth quarter decreased 1 basis point from the preceding third quarter and 5 basis points from the year-ago fourth quarter. On a core basis, excluding the effect of premium amortization on time and savings deposits assumed in acquisitions, the weighted average cost of deposits increased 4 basis points from the preceding third quarter and increased 8 basis points when compared with the 2015 fourth quarter.

Noninterest Income. Noninterest income for the 2016 fourth quarter totaled $18.2 million, compared with $14.1 million in the preceding 2016 third quarter and $11.0 million in the year-ago fourth quarter. The Company noted that the increase reflects in part a full quarter of combined operations for the 2016 fourth quarter, versus the 2016 third quarter, which included two months of combined operations and one month of stand-alone BBCN, and the 2015 fourth quarter, which was stand-alone BBCN. In addition, noninterest income for the comparable periods reflect variations in gain on sale of Small Business Administration (“SBA”), gain on sale of other loans and gain on sale of securities available-for-sale. Noninterest income for the 2016 fourth quarter included a $3.7 million gain on sale of SBA loans and a $1.4 million gain on sale other loans from the combined mortgage operations platform. Noninterest income for the preceding 2016 third quarter included a $948,000 net gain on the sale of securities available-for-sale, a $1.5 million gain on sale of other loans, which was predominantly mortgage loans, and just $230,000 gain on sale of SBA loans. In the 2015 fourth quarter, noninterest income included a $3.1 million gain on sale of SBA loans and just $17,000 gain on sale of other loans.

Noninterest Expense. Total noninterest expense for the 2016 fourth quarter, 2016 third quarter and 2015 fourth quarter amounted to $66.7 million, $67.8 million and $38.9 million, respectively. The Company noted that total noninterest expense reflects the combination of the two predecessor companies as previously described and merger-related expenses of $3.0 million, $11.2 million and $1.4 million in the 2016 fourth quarter, 2016 third quarter and 2015 fourth quarter, respectively. Excluding merger-related expenses, total noninterest expense would have been $63.8 million, $56.6 million and $37.5 million for the 2016 fourth quarter, 2016 third quarter and 2015 fourth quarter, respectively.

Noninterest expense excluding merger-related expenses is a non-GAAP financial measure. Management believes total noninterest expense excluding merger-related expenses more accurately reflects the Company’s results of operations in the overall evaluation of its performance. A reconciliation of the noninterest expense excluding merger-related expenses is included in the accompanying financial tables.

Salaries and employee benefits expense totaled $34.2 million for the 2016 fourth quarter, $30.5 million for the 2016 third quarter and $21.3 million for the year-ago fourth quarter. The total number of FTEs for the combined company as of December 31, 2016 was 1,382, down from 1,400 as of September 30, 2016. At December 31, 2015, the total number of FTEs for the former BBCN was 938.

As previously reported, the Company announced the second and final phase of its branch consolidation plan that will result in nine branch consolidations to be completed by the second quarter of 2017. These branch consolidations are expected to result in additional costs savings of approximately $5 million pre-tax on an annual basis beginning in 2017. During the 2016 fourth quarter, the Company recorded $1.3 million in one-time charges pre-tax related to branch consolidations.

Income Tax Provision. The effective tax rate for the 2016 fourth quarter was 40.1%, compared with 39.7% for the preceding 2016 third quarter and 41.2% for the 2015 fourth quarter.

(more)

Page 5-5-5 NASDAQ: HOPE

Balance Sheet Summary

Loans receivable totaled $10.54 billion at December 31, 2016, compared with $10.56 billion at September 30, 2016, and $6.25 billion at December 31, 2015.

Total new loan originations during the 2016 fourth quarter amounted to $464.8 million, including warehouse lines of credit of $16.0 million, residential mortgage loans of $74.2 million and SBA loan originations of $62.5 million.

Sales of SBA loans to the secondary market and gains derived from those sales are based substantially on the production of SBA 7(a) loans. Production of SBA 7(a) loans totaled $42.2 million for the fourth quarter of 2016, compared with $50.2 million for the preceding 2016 third quarter and $39.4 million for the 2015 fourth quarter. During the 2016 fourth quarter, the Company returned to its regular practice of selling the majority of its SBA 7(a) loans and sold $50.3 million, compared with just $2.4 million in the preceding third quarter and $41.9 million in the year-ago fourth quarter. The decision to retain or sell SBA loans is made on a quarter-to-quarter basis, depending on prevailing pricing in the secondary market and the Company’s liquidity needs.

Aggregate pay offs and pay downs for the combined company in the 2016 fourth quarter amounted to $417.3 million, compared with $357.0 million for the preceding 2016 third quarter, which included two months of combined operations and one month of stand-alone BBCN, and $267.1 million for the year-ago fourth quarter for BBCN alone.

Total deposits amounted to $10.64 billion at December 31, 2016, compared with $10.70 billion at September 30, 2016, and largely reflects increases in money market accounts, offset by outflows in time deposits. Total deposits increased 68% when compared with $6.34 billion at December 31, 2015, reflecting the merger completion on July 29, 2016.

Credit Quality

The provision for loan losses for the 2016 fourth quarter was $800,000, compared with $6.5 million for the preceding 2016 third quarter and $4.9 million for the prior-year fourth quarter.

For a more detailed understanding of the changes in the Allowance for Loan and Lease Losses (“ALLL”), the composition of the ALLL has been segmented for disclosure purposes between loans accounted for under the amortized cost method (referred to as “legacy loans”) and loans acquired through the Wilshire Bancorp, Center Financial, Pacific International and Foster Bankshares transactions (referred to as “purchased loans”). The purchased loans are further segregated between non-impaired and credit-impaired loans.

The composition of the ALLL as of December 31, 2016, September 30, 2016 and December 31, 2015 is as follows:



(dollars in thousands) (unaudited)	12/31/2016			9/30/2016			12/31/2015
Legacy loans ⁽¹⁾	$	66,399		$	66,986		$	63,309
Purchased non-impaired loans ⁽²⁾		814			938			1,117
Purchased credit-impaired loans ⁽²⁾		12,130			12,052			11,982
Total ALLL	$	79,343		$	79,976		$	76,408

Loans receivable	$	10,543,332		$	10,561,197		$	6,248,341
ALLL coverage ratio		0.75	%		0.76	%		1.22	%


⁽¹⁾	Legacy loans include loans originated by the Bank’s predecessor bank, loans originated by Bank of Hope and loans that were acquired and that have been refinanced as new loans.


⁽²⁾	Purchased loans were marked to fair value at acquisition date, and the allowance for loan losses reflect provisions for credit deterioration since the acquisition date.

(more)

Page 6-6-6 NASDAQ: HOPE

Following are the components of criticized loan balances as of December 31, 2016, September 30, 2016 and December 31, 2015:



(dollars in thousands)	12/31/2016		9/30/2016		12/31/2015
Special Mention ⁽¹⁾	$	243,656	$	308,893	$	104,186
Classified ⁽¹⁾		313,055		259,268		203,576
Criticized	$	556,711	$	568,161	$	307,762


⁽¹⁾	Balances include purchased loans which were marked to fair value on the date of acquisition.

The Company defines nonperforming loans to include delinquent loans past due 90 days or more on nonaccrual status, delinquent loans past due 90 days or more on accrual status (excluding purchased credit-impaired loans) and accruing restructured loans. Nonaccrual loans at December 31, 2016 totaled $40.1 million, or 0.38% of loans receivable. This compares with nonaccrual loans of $40.6 million, or 0.38% of loans receivable, at September 30, 2016 and $40.8 million, or 0.65% of loans receivable, at December 31, 2015. Accruing restructured loans totaled $48.9 million at December 31, 2016, compared with $48.7 million at September 30, 2016 and $48.0 million at December 31, 2015. Total nonperforming loans at December 31, 2016 amounted to $89.3 million, or 0.85% of loans receivable. This compares with total nonperforming loans of $89.5 million, or 0.85% of loans receivable, at September 30, 2016 and $89.2 million, or 1.43% of loans receivable, at September 30, 2015.

Nonperforming assets, including nonperforming loans and other real estate owned, totaled $111.2 million at December 31, 2016, compared with $117.0 million at September 30, 2016 and $110.2 million at December 31, 2015. As a percentage of total assets, nonperforming assets declined to 0.83% at December 31, 2016 from 0.87% at September 30, 2016 and 1.39% at December 31, 2015.

For the 2016 fourth quarter, the Company recorded net charge offs of $1.4 million, or 0.05% of average loans receivable on an annualized basis. This compares with net charge offs of $2.9 million, or 0.13% of average loans receivable on an annualized basis for the 2016 third quarter and net recoveries of $398,000, or 0.03% of average loans receivable on an annualized basis, for the 2015 fourth quarter.

The allowance for loan losses at December 31, 2016 was $79.3 million, or 0.75% of loans receivable (excluding loans held for sale), compared with $80.0 million, or 0.76%, at September 30, 2016 and $76.4 million, or 1.22%, at December 31, 2015. The coverage ratio of the allowance for loan losses to nonperforming loans (excluding purchased credit-impaired loans) was 88.90% at December 31, 2016, versus 89.36% at September 30, 2016 and 85.70% at December 31, 2015.

Impaired loans (defined as loans for which it is probable that not all principal and interest payments due will be collected in accordance with the contractual terms) totaled $140.4 million at December 31, 2016, compared with $128.1 million at September 30, 2016 and $138.1 million at December 31, 2015.

Capital

At December 31, 2016, the Company continued to exceed all regulatory capital requirements to be classified as a “well-capitalized” institution, as summarized in the following table:



	12/31/2016	9/30/2016	12/31/2015	Minimum Guideline for “Well-Capitalized” Institution
Common Equity Tier 1 Capital	12.10%	11.96%	12.08%	6.50%
Tier 1 Leverage Ratio	11.49%	13.02%	11.53%	5.00%
Tier 1 Risk-based Ratio	12.92%	12.79%	12.67%	8.00%
Total Risk-based Ratio	13.64%	13.51%	13.80%	10.00%

(more)

Page 7-7-7 NASDAQ: HOPE

Tangible common equity per share and as a percentage of tangible assets are summarized in the following table:



	12/31/2016	9/30/2016	12/31/2015
Tangible common equity per share ⁽¹⁾	$10.15	$10.14	$10.43
Tangible common equity to tangible assets ⁽¹⁾	10.60%	10.52%	10.63%

⁽¹⁾

Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and net other intangible assets divided by total assets less goodwill and net other intangible assets. Management reviews tangible common equity to tangible assets in evaluating the Company’s capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital. The accompanying financial information includes a reconciliation of the ratio of tangible common equity to tangible assets with stockholders’ equity and total assets.

Investor Conference Call

The Company will host an investor conference call on Wednesday, January 25, 2017 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for the fourth quarter ended December 31, 2016. 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.” 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 at www.ir-hopebancorp.com. After the live webcast, a replay will remain available in 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 February 1, 2017, replay access code 10098630.

About Hope Bancorp, Inc.

Hope Bancorp, Inc. is the holding company of Bank of Hope, the first and only super regional Korean-American bank in the United States with $13.4 billion in total assets as of December 31, 2016. Formed through the merger of BBCN Bank and Wilshire Bank, the top two commercial lenders in the market, Bank of Hope is headquartered in Los Angeles and serves a multi-ethnic population of customers across the nation. Bank of Hope operates 73 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Georgia and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, and Portland, Oregon; a commercial loan production office in Fremont, California; residential mortgage loan production offices in 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 and commercial 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.

Forward-Looking Statements

This press release may contain forward-looking statements. These statements are based on current expectations, estimates, forecasts and projections and management assumptions about the future performance of the combined company, as well as the businesses and markets in which the combined company operates and is expected to operate. These statements constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, involve certain risks, uncertainties and assumptions that are difficult to assess and are not guarantees of future performance and. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers should carefully review the risk factors and the information that could materially affect the Company’s financial results and business, described in documents the Company files from time to time with the Securities and Exchange Commission, including its quarterly reports on Form 10-Q and Annual Reports on Form 10-K, and particularly the discussions of business considerations and certain factors that may affect results of operations and stock price set forth therein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.

# # #

(tables follow)

(more)

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share data)



Assets	12/31/2016			9/30/2016			% change		12/31/2015			% change
Cash and due from banks	$	437,334		$	443,903		(1	)%	$	298,389		47	%
Securities available for sale, at fair value	1,556,740			1,558,719			—	%	1,010,556			54	%
Federal Home Loan Bank (“FHLB”), Federal Reserve Bank (“FRB”) stock and other investments	66,166			69,119			(4	)%	66,859			(1	)%
Loans held for sale, at the lower of cost or fair value	22,785			58,186			(61	)%	8,273			175	%
Loans receivable	10,543,332			10,561,197			—	%	6,248,341			69	%
Allowance for loan losses	(79,343		)	(79,976		)	1	%	(76,408		)	(4	)%
Net loans receivable	10,463,989			10,481,221			—	%	6,171,933			70	%
Accrued interest receivable	26,880			24,165			11	%	15,195			77	%
Premises and equipment, net	55,316			53,966			3	%	34,575			60	%
Bank owned life insurance	73,696			73,290			1	%	47,018			57	%
Goodwill	464,448			464,419			—	%	105,401			341	%
Servicing assets	26,457			26,529			—	%	12,000			120	%
Other intangible assets, net	19,226			19,968			(4	)%	2,820			582	%
Other assets	229,451			237,144			(3	)%	139,629			64	%
Total assets	$	13,442,488		$	13,510,629		(1	)%	$	7,912,648		70	%

Liabilities
Deposits	$	10,642,035		$	10,702,505		(1	)%	$	6,340,976		68	%
Borrowings from FHLB	754,290			754,739			—	%	530,591			42	%
Subordinated debentures	99,808			99,548			—	%	42,327			136	%
Accrued interest payable	10,863			9,708			12	%	6,007			81	%
Other liabilities	78,599			89,558			(12	)%	54,652			44	%
Total liabilities	11,585,595			11,656,058			(1	)%	6,974,553			66	%

Stockholders’ Equity
Common stock, $0.001 par value; authorized, 150,000,000 shares at December, 31, 2016, September, 30, 2016, and December, 31, 2015; issued and outstanding, 135,240,079, 135,109,641, and 79,566,356 at December, 31, 2016, September, 30, 2016, and December, 31, 2015, respectively	135			135			—	%	80			69	%
Capital surplus	1,401,911			1,400,915			—	%	541,596			159	%
Retained earnings	469,505			445,104			5	%	398,251			18	%
Accumulated other comprehensive income (loss), net	(14,658		)	8,417			(274	)%	(1,832		)	(700	)%
Total stockholders’ equity	1,856,893			1,854,571			—	%	938,095			98	%
Total liabilities and stockholders’ equity	$	13,442,488		$	13,510,629		(1	)%	$	7,912,648		70	%

Table Page 1

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except per share data)



	Three Months Ended												Twelve Months Ended
	12/31/2016		9/30/2016			% change		12/31/2015			% change		12/31/2016		12/31/2015		% change
Interest income:
Interest and fees on loans	$	125,791	$	112,132		12	%	$	76,807		64	%	$	392,127	$	291,344	35	%
Interest on securities	7,391		6,645			11	%	5,544			33	%	25,442		18,611		37	%
Interest on federal funds sold and other investments	2,205		775			185	%	622			255	%	4,365		3,705		18	%
Total interest income	135,387		119,552			13	%	82,973			63	%	421,934		313,660		35	%

Interest expense:
Interest on deposits	14,815		13,017			14	%	9,297			59	%	48,091		33,412		44	%
Interest on other borrowings	3,363		3,061			10	%	1,908			76	%	10,488		7,206		46	%
Total interest expense	18,178		16,078			13	%	11,205			62	%	58,579		40,618		44	%

Net interest income before provision for loan losses	117,209		103,474			13	%	71,768			63	%	363,355		273,042		33	%
Provision for loan losses	800		6,500			(88	)%	4,900			(84	)%	9,000		8,000		13	%
Net interest income after provision for loan losses	116,409		96,974			20	%	66,868			74	%	354,355		265,042		34	%

Noninterest income:
Service fees on deposit accounts	5,601		4,778			17	%	2,944			90	%	15,964		12,206		31	%
Net gains on sales of SBA loans	3,660		230			1,491	%	3,112			18	%	8,750		12,665		(31	)%
Net gains on sales of other loans	1,401		1,476			(5	)%	17			8,141	%	2,920		270		981	%
Net gains on sales of securities available for sale	2		948			(100	)%	—			100	%	950		424		124	%
Other income and fees	7,528		6,714			12	%	4,904			54	%	23,235		18,126		28	%
Total noninterest income	18,192		14,146			29	%	10,977			66	%	51,819		43,691		19	%

Noninterest expense:
Salaries and employee benefits	34,162		30,456			12	%	21,329			60	%	107,944		84,899		27	%
Occupancy	7,948		6,889			15	%	4,949			61	%	24,574		19,391		27	%
Furniture and equipment	3,805		3,297			15	%	2,330			63	%	11,726		9,245		27	%
Advertising and marketing	2,475		2,306			7	%	906			173	%	7,320		5,090		44	%
Data processing and communications	3,904		3,199			22	%	2,175			79	%	11,403		9,179		24	%
Professional fees	2,301		1,898			21	%	1,618			42	%	6,556		5,585		17	%
FDIC assessment	468		1,564			(70	)%	1,040			(55	)%	4,165		4,088		2	%
Credit related expenses	812		810			—	%	324			151	%	2,954		1,924		54	%
Other real estate owned (“OREO”) expense, net	1,354		(423		)	N/A		(154		)	N/A		2,492		1,523		64	%
Merger-related expenses	2,952		11,222			(74	)%	1,438			105	%	16,914		1,540		998	%
Other	6,550		6,628			(1	)%	2,983			120	%	18,927		10,920		73	%
Total noninterest expense	66,731		67,846			(2	)%	38,938			71	%	214,975		153,384		40	%
Income before income taxes	67,870		43,274			57	%	38,907			74	%	191,199		155,349		23	%
Income tax provision	27,240		17,169			59	%	16,038			70	%	77,452		63,091		23	%
Net income	$	40,630	$	26,105		56	%	$	22,869		78	%	$	113,747	$	92,258	23	%

Earnings Per Common Share:
Basic	$	0.30	$	0.22				$	0.29				$	1.10	$	1.17
Diluted	$	0.30	$	0.22				$	0.29				$	1.10	$	1.16

Average Shares Outstanding:
Basic	135,238,928		116,622,920					79,556,859					103,289,059		78,549,651
Diluted	135,585,561		116,653,166					79,601,452					103,530,318		79,611,800

Table Page 2

Hope Bancorp, Inc.

Selected Financial Data

Unaudited



	At or for the Three Months Ended (Annualized)						At or for the Twelve Months Ended (Annualized)
Profitability measures:	12/31/2016		9/30/2016		12/31/2015		12/31/2016		12/31/2015
ROA	1.20	%	0.89	%	1.19	%	1.10	%	1.25	%
ROE	8.72	%	6.59	%	9.76	%	8.47	%	10.11	%
Return on average tangible equity ¹	11.77	%	8.59	%	11.03	%	10.59	%	11.48	%
Net interest margin	3.75	%	3.77	%	3.88	%	3.75	%	3.88	%
Efficiency ratio	49.28	%	57.68	%	47.06	%	51.78	%	48.43	%

¹Average tangible equity is calculated by subtracting average goodwill and average core deposit intangibles assets from average stockholders’ equity. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position.

Table Page 3

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



	Three Months Ended						Three Months Ended						Three Months Ended
	12/31/2016						9/30/2016						12/31/2015
			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 receivable, including loans held for sale	$	10,427,538	$	125,791	4.80	%	$	9,292,814	$	112,132	4.80	%	$	6,102,693	$	76,807	4.99	%
Securities available for sale	1,586,560		7,391		1.85	%	1,406,919		6,645		1.89	%	1,010,247		5,544		2.20	%
FRB and FHLB stock and other investments	433,212		2,205		2.02	%	237,981		775		1.30	%	225,529		622		1.09	%
Total interest earning assets	$	12,447,310	$	135,387	4.33	%	$	10,937,714	$	119,552	4.35	%	$	7,338,469	$	82,973	4.49	%

INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing	$	3,414,158	$	7,054	0.82	%	$	2,924,340	$	5,932	0.81	%	$	1,855,772	$	3,651	0.78	%
Savings	303,064		319		0.42	%	268,424		311		0.46	%	189,271		410		0.86	%
Time deposits:
$100,000 or more	3,035,499		5,325		0.70	%	2,687,108		4,913		0.73	%	1,752,429		3,764		0.85	%
Other	1,085,254		2,117		0.78	%	913,292		1,861		0.81	%	704,040		1,472		0.83	%
Total time deposits	4,120,753		7,442		0.72	%	3,600,400		6,774		0.75	%	2,456,469		5,236		0.85	%
Total interest bearing deposits	7,837,975		14,815		0.75	%	6,793,164		13,017		0.76	%	4,501,512		9,297		0.82	%
FHLB advances	681,757		2,190		1.28	%	698,081		2,161		1.23	%	515,981		1,507		1.16	%
Other borrowings	95,650		1,173		4.80	%	78,828		900		4.47	%	40,764		401		3.85	%
Total interest bearing liabilities	8,615,382		$	18,178	0.84	%	7,570,073		$	16,078	0.84	%	5,058,257		$	11,205	0.88	%
Noninterest bearing demand deposits	2,918,156						2,535,015						1,645,237
Total funding liabilities/cost of funds	$	11,533,538			0.63	%	$	10,105,088			0.63	%	$	6,703,494			0.66	%
Net interest income/net interest spread			$	117,209					$	103,474					$	71,768
Net interest margin					3.75	%					3.77	%					3.88	%
Cost of deposits:
Noninterest bearing demand deposits	$	2,918,156	$	—			$	2,535,015	$	—			$	1,645,237	$	—
Interest bearing deposits	7,837,975		14,815		0.75	%	6,793,164		13,017		0.76	%	4,501,512		9,297		0.82	%
Total deposits	$	10,756,131	$	14,815	0.55	%	$	9,328,179	$	13,017	0.56	%	$	6,146,749	$	9,297	0.60	%

Table Page 4

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



	Twelve Months Ended						Twelve Months Ended
	12/31/2016						12/31/2015
			Interest		Annualized				Interest		Annualized
	Average		Income/		Average		Average		Income/		Average
	Balance		Expense		Yield/Cost		Balance		Expense		Yield/Cost
INTEREST EARNING ASSETS:
Loans receivable, including loans held for sale	$	8,121,897	$	392,127	4.83	%	$	5,846,658	$	291,344	4.98	%
Securities available for sale	1,276,068		25,442		1.99	%	871,010		18,611		2.14	%
FRB and FHLB stock and other investments	281,824		4,365		1.55	%	313,904		3,705		1.18	%
Total interest earning assets	$	9,679,789	$	421,934	4.36	%	$	7,031,572	$	313,660	4.46	%

INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing	$	2,587,548	$	21,136	0.82	%	$	1,697,033	$	12,430	0.73	%
Savings	234,332		1,282		0.55	%	193,610		1,670		0.86	%
Time deposits:
$100,000 or more	2,357,794		18,535		0.79	%	1,723,410		14,105		0.82	%
Other	861,690		7,138		0.83	%	654,583		5,207		0.80	%
Total time deposits	3,219,484		25,673		0.80	%	2,377,993		19,312		0.81	%
Total interest bearing deposits	6,041,364		48,091		0.80	%	4,268,636		33,412		0.78	%
FHLB advances	619,557		7,560		1.22	%	503,127		5,645		1.12	%
Other borrowings	64,165		2,928		4.49	%	40,694		1,561		3.78	%
Total interest bearing liabilities	6,725,086		$	58,579	0.87	%	4,812,457		$	40,618	0.84	%
Noninterest bearing demand deposits	2,191,620						1,611,068
Total funding liabilities/cost of funds	$	8,916,706			0.66	%	$	6,423,525			0.63	%
Net interest income/net interest spread			$	363,355	3.49	%			$	273,042	3.62	%
Net interest margin					3.75	%					3.88	%
Cost of deposits:
Noninterest bearing demand deposits	$	2,191,620	$	—			$	1,611,068	$	—
Interest bearing deposits	6,041,364		48,091		0.80	%	4,268,636		33,412		0.78	%
Total deposits	$	8,232,984	$	48,091	0.58	%	$	5,879,704	$	33,412	0.57	%

Table Page 5

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



	Three Months Ended													Twelve Months Ended
AVERAGE BALANCES:	12/31/2016			9/30/2016			% change		12/31/2015			% change		12/31/2016		12/31/2015		% change
Loans receivable, including loans held for sale	$	10,427,538		$	9,292,814		12	%	$	6,102,693		71	%	$	8,121,897	$	5,846,658	39	%
Investments	2,019,772			1,644,900			23	%	1,235,776			63	%	1,557,892		1,184,914		31	%
Interest earning assets	12,447,310			10,937,714			14	%	7,338,469			70	%	9,679,789		7,031,572		38	%
Total assets	13,506,860			11,777,564			15	%	7,700,716			75	%	10,342,068		7,389,530		40	%

Interest bearing deposits	7,837,975			6,793,164			15	%	4,501,512			74	%	6,041,364		4,268,636		42	%
Interest bearing liabilities	8,615,382			7,570,073			14	%	5,058,257			70	%	6,725,086		4,812,457		40	%
Noninterest bearing demand deposits	2,918,156			2,535,015			15	%	1,645,237			77	%	2,191,620		1,611,068		36	%
Stockholders’ equity	1,864,797			1,585,100			18	%	937,664			99	%	1,342,962		912,609		47	%
Net interest earning assets	3,831,928			3,367,641			14	%	2,280,212			68	%	2,954,703		2,219,115		33	%

LOAN PORTFOLIO COMPOSITION:	12/31/2016			9/30/2016			% change		12/31/2015			% change
Commercial loans	$	1,986,949		$	2,011,913		(1	)%	$	1,079,316		84	%
Real estate loans	8,154,570			8,158,871			—	%	5,069,482			61	%
Consumer and other loans	403,470			392,608			3	%	102,573			293	%
Loans outstanding	10,544,989			10,563,392			—	%	6,251,371			69	%
Unamortized deferred loan fees - net of costs	(1,657		)	(2,195		)	25	%	(3,030		)	45	%
Loans, net of deferred loan fees and costs	10,543,332			10,561,197			—	%	6,248,341			69	%
Allowance for loan losses	(79,343		)	(79,976		)	1	%	(76,408		)	(4	)%
Loan receivable, net	$	10,463,989		$	10,481,221		—	%	$	6,171,933		70	%

REAL ESTATE LOANS BY PROPERTY TYPE:	12/31/2016			9/30/2016			% change		12/31/2015			% change
Retail buildings	$	2,163,075		$	2,136,128		1	%	$	1,326,516		63	%
Hotels/motels	1,605,787			1,599,985			—	%	1,061,111			51	%
Gas stations/car washes	946,364			962,643			(2	)%	667,496			42	%
Mixed-use facilities	563,484			546,177			3	%	369,425			53	%
Warehouses	892,100			912,818			(2	)%	529,255			69	%
Multifamily	423,084			426,257			(1	)%	245,532			72	%
Other	1,560,676			1,574,863			(1	)%	870,147			79	%
Total	$	8,154,570		$	8,158,871		—	%	$	5,069,482		61	%

DEPOSIT COMPOSITION	12/31/2016			9/30/2016			% change		12/31/2015			% change
Noninterest bearing demand deposits	$	2,900,241		$	2,903,658		—	%	$	1,694,427		71	%
Money market and other	3,401,446			3,318,728			2	%	1,983,250			72	%
Saving deposits	301,906			304,719			(1	)%	187,498			61	%
Time deposits of $100,000 or more	2,982,256			3,077,629			(3	)%	1,772,975			68	%
Other time deposits	1,056,186			1,097,771			(4	)%	702,826			50	%
Total deposit balances	$	10,642,035		$	10,702,505		(1	)%	$	6,340,976		68	%

DEPOSIT COMPOSITION (%)	12/31/2016			9/30/2016					12/31/2015
Noninterest bearing demand deposits	27.3		%	27.1		%			26.7		%
Money market and other	32.0		%	31.0		%			31.3		%
Saving deposits	2.8		%	2.8		%			3.0		%
Time deposits of $100,000 or more	28.0		%	28.8		%			28.0		%
Other time deposits	9.9		%	10.3		%			11.0		%
Total deposit balances	100.0		%	100.0		%			100.0		%

Table Page 6

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



CAPITAL RATIOS:	12/31/2016			9/30/2016			12/31/2015
Total stockholders’ equity	$	1,856,893		$	1,854,571		$	938,095
Common Equity Tier 1 ratio	12.10		%	11.96		%	12.08		%
Tier 1 risk-based capital ratio	12.92		%	12.79		%	12.67		%
Total risk-based capital ratio	13.64		%	13.51		%	13.80		%
Tier 1 leverage ratio	11.49		%	13.02		%	11.53		%
Total risk weighted assets	$	11,575,559		$	11,491,204		$	6,905,154
Book value per common share	$	13.73		$	13.73		$	11.79
Tangible common equity to tangible assets ²	10.60		%	10.52		%	10.63		%
Tangible common equity per share ²	$	10.15		$	10.14		$	10.43

²Tangible common equity to tangible assets is a non-GAAP financial measure that represents common equity less goodwill and core deposit intangible assets, net divided by total assets less goodwill and core deposit intangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company’s capital levels and has included this ratio in response to market participant interest in tangible common equity as a measure of capital.

Reconciliation of GAAP financial measures to non-GAAP financial measures:
	Three Months Ended									Twelve Months Ended
NONINTEREST EXPENSE BEFORE MERGER-RELATED COSTS	12/31/2016			9/30/2016			12/31/2015			12/31/2016			12/31/2015
Total noninterest expense	$	66,731		$	67,846		$	38,938		$	214,975		$	153,384
Less: merger-related costs	2,952			11,222			1,438			16,914			1,540
Total noninterest expense, excluding merger-related expense	$	63,779		$	56,624		$	37,500		$	198,061		$	151,844

CORE EPS LESS MERGER RELATED EXPENSES
Net income	$	40,630		$	26,105		$	22,869		$	113,747		$	92,258
Less: merger-related costs	2,952			11,222			1,438			16,914			1,540
Tax provision adjustment	(1,185		)	(4,452		)	(593		)	(6,852		)	(625		)
Net income, excluding merger-related expense	$	42,397		$	32,875		$	23,714		$	123,809		$	93,173

Weighted average common shares diluted	135,585,561			116,653,166			79,601,452			103,530,318			79,611,800
Core EPS excluding merger-related expenses	$	0.31		$	0.28		$	0.30		$	1.20		$	1.17

TANGIBLE COMMON EQUITY
Total stockholders’ equity	$	1,856,893		$	1,854,571		$	938,095
Less: Common stock warrant	—			—			—
Goodwill and core deposit intangible assets, net	(483,674		)	(484,387		)	(108,221		)
Tangible common equity	$	1,373,219		$	1,370,184		$	829,874

Total assets	$	13,442,488		$	13,510,629		$	7,912,648
Less: Goodwill and core deposit intangible assets, net	(483,674		)	(484,387		)	(108,221		)
Tangible assets	$	12,958,814		$	13,026,242		$	7,804,427

Common shares outstanding	135,240,079			135,109,641			79,566,356

Tangible common equity to tangible assets	10.60		%	10.52		%	10.63		%
Tangible common equity per share	$	10.15		$	10.14		$	10.43

Table Page 7

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



	Three Months Ended															Twelve Months Ended
ALLOWANCE FOR LOAN LOSSES:	12/31/2016			9/30/2016			6/30/2016			3/31/2016			12/31/2015			12/31/2016			12/31/2015
Balance at beginning of period	$	79,976		$	76,425		$	76,856		$	76,408		$	71,110		$	76,408		$	67,758
Provision for loan losses	800			6,500			1,200			500			4,900			9,000			8,000
Recoveries	452			1,010			664			769			955			2,895			5,562
Charge offs	(1,885		)	(3,959		)	(2,295		)	(821		)	(557		)	(8,960		)	(4,912		)
Balance at end of period	$	79,343		$	79,976		$	76,425		$	76,856		$	76,408		$	79,343		$	76,408
Net charge offs/average loans receivable (annualized)	0.05		%	0.13		%	0.10		%	—		%	(0.03		)%	0.07		%	(0.01		)%

	Three Months Ended															Twelve Months Ended
NET CHARGED OFF/(RECOVERED) LOANS BY TYPE	12/31/2016			9/30/2016			6/30/2016			3/31/2016			12/31/2015			12/31/2016			12/31/2015
Real estate loans	$	(45	)	$	(248	)	$	18		$	(390	)	$	(254	)	$	(665	)	$	(1,206	)
Commercial loans	1,375			2,663			1,649			379			(127		)	6,066			519
Consumer loans	478			159			(36		)	63			(17		)	664			37
Charge offs excluding Acquired Credit Impaired Loans	1,808			2,574			1,631			52			(398		)	6,065			(650		)
Charge offs on Acquired Credit Impaired Loans	(375		)	375			—			—			—			—			—
Total net charge offs / (recoveries)	$	1,433		$	2,949		$	1,631		$	52		$	(398	)	$	6,065		$	(650	)

Table Page 8

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



NONPERFORMING ASSETS	12/31/2016			9/30/2016			6/30/2016			3/31/2016			12/31/2015
Delinquent loans on nonaccrual status ³	$	40,074		$	40,602		$	42,398		$	43,548		$	40,801
Delinquent loans 90 days or more on accrual status ⁴	305			192			147			45			375
Accruing restructured loans	48,874			48,701			50,837			52,760			47,984
Total nonperforming loans	89,253			89,495			93,382			96,353			89,160
Other real estate owned	21,990			27,457			16,392			19,794			21,035
Total nonperforming assets	$	111,243		$	116,952		$	109,774		$	116,147		$	110,195
Nonperforming assets/total assets	0.83		%	0.87		%	1.32		%	1.44		%	1.39		%
Nonperforming assets/loans receivable & OREO	1.05		%	1.10		%	1.66		%	1.82		%	1.76		%
Nonperforming assets/total capital	5.99		%	6.31		%	11.3		%	12.07		%	11.75		%
Nonperforming loans/loans receivable	0.85		%	0.85		%	1.42		%	1.51		%	1.43		%
Nonaccrual loans/loans receivable	0.38		%	0.38		%	0.64		%	0.68		%	0.65		%
Allowance for loan losses/loans receivable	0.75		%	0.76		%	1.16		%	1.21		%	1.22		%
Allowance for loan losses/nonaccrual loans	197.99		%	196.98		%	180.26		%	176.49		%	187.27		%
Allowance for loan losses/nonperforming loans	88.90		%	89.36		%	81.84		%	79.77		%	85.70		%
Allowance for loan losses/nonperforming assets	71.32		%	68.38		%	69.62		%	66.17		%	69.34		%

³ Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.9 million, $14.1 million, $15.5 million, $15.4 million, and $18.7 million at December 31, 2016, September, 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively.
⁴ Excludes Acquired Credit Impaired Loans totaling $19.6 million, $16.4 million, $13.8 million, $13.1 million, and $12.2 million at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively.

BREAKDOWN OF ACCRUING RESTRUCTURED LOANS BY TYPE:	12/31/2016			9/30/2016			6/30/2016			3/31/2016			12/31/2015
Retail buildings	$	5,832		$	5,876		$	4,565		$	4,598		$	5,593
Hotels/motels	1,305			1,315			1,324			1,336			1,342
Gas stations/car washes	—			829			835			840			845
Mixed-use facilities	889			895			1,111			1,117			1,124
Warehouses	5,379			5,449			5,512			5,575			5,635
Other ⁵	35,469			34,337			37,490			39,294			33,445
Total	$	48,874		$	48,701		$	50,837		$	52,760		$	47,984

⁵Includes commercial business and other loans

DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE	12/31/2016			9/30/2016			6/30/2016			3/31/2016			12/31/2015
Legacy
30 - 59 days	$	6,254		$	3,580		$	2,920		$	4,488		$	3,104
60 - 89 days	6,719			1,100			1,427			1,510			1,678
Total delinquent loans less than 90 days past due - legacy	$	12,973		$	4,680		$	4,347		$	5,998		$	4,782

Acquired
30 - 59 days	$	4,015		$	3,451		$	2,735		$	1,456		$	3,170
60 - 89 days	1,049			1,168			345			47			39
Total delinquent loans less than 90 days past due - acquired	$	5,064		$	4,619		$	3,080		$	1,503		$	3,209

Total delinquent loans less than 90 days past due	$	18,037		$	9,299		$	7,427		$	7,501		$	7,991

Table Page 9

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



DELINQUENT LOANS LESS THAN 90 DAYS PAST DUE BY TYPE	12/31/2016		9/30/2016			6/30/2016		3/31/2016		12/31/2015
Legacy
Real estate loans	$	10,896	$	2,678		$	2,047	$	1,624	$	2,179
Commercial loans	2,010		1,866			2,215		1,441		1,676
Consumer loans	67		136			85		2,933		927
Total delinquent loans less than 90 days past due - legacy	$	12,973	$	4,680		$	4,347	$	5,998	$	4,782

Acquired
Real estate loans	$	2,721	$	3,761		$	2,557	$	1,189	$	2,572
Commercial loans	1,987		858			211		314		349
Consumer loans	356		—			312		—		288
Total delinquent loans less than 90 days past due - acquired	$	5,064	$	4,619		$	3,080	$	1,503	$	3,209

Total delinquent loans less than 90 days past due	$	18,037	$	9,299		$	7,427	$	7,501	$	7,991


NONACCRUAL LOANS BY TYPE	12/31/2016		9/30/2016			6/30/2016		3/31/2016		12/31/2015
Real estate loans	$	27,523	$	24,055		$	25,306	$	26,123	$	24,375
Commercial loans	11,773		15,742			16,270		16,842		15,600
Consumer loans	779		805			822		583		826
Total nonaccrual loans	$	40,075	$	40,602		$	42,398	$	43,548	$	40,801

CRITICIZED LOANS	12/31/2016		9/30/2016			6/30/2016		3/31/2016		12/31/2015
Legacy
Special mention	$	127,562	$	168,289		$	80,923	$	87,025	$	85,945
Substandard	162,942		124,938			128,885		129,314		126,880
Doubtful	95		441			108		133		20
Loss	—		—			—		—		—
Total criticized loans - legacy	$	290,599	$	293,668		$	209,916	$	216,472	$	212,845

Acquired
Special mention	$	116,094	$	140,604		$	19,447	$	17,017	$	18,241
Substandard	148,164		131,398			67,261		71,954		74,482
Doubtful	1,854		2,624			2,603		1,997		2,194
Loss	—		(133		)	—		—		—
Total criticized loans - acquired	$	266,112	$	274,493		$	89,311	$	90,968	$	94,917

Total criticized loans	$	556,711	$	568,161		$	299,227	$	307,440	$	307,762

Table Page 10

HOPE BANCORP INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 24, 2017

Attached files

HOPE BANCORP INC Reports