Hope Bancorp Reports 2024 Fourth Quarter and Full-Year Financial Results

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 fourth quarter and twelve months ended December 31, 2024. For the three months ended December 31, 2024, net income totaled $24.3 million, or $0.20 per diluted common share. This compares with net income of $24.2 million, or $0.20 per diluted common share, in the third quarter of 2024. For the full year ended December 31, 2024, net income totaled $99.6 million, or $0.82 per diluted common share. Excluding notable items(1), net income for the 2024 full year was $103.4 million, or $0.85 per diluted common share. “For the 2024 fourth quarter, our pre-provision net revenue(2) increased 14% to $40.4 million, up from $35.4 million in the preceding third quarter. Quarter-over-quarter, our total revenue grew, led by strong growth in noninterest income, and our noninterest expense decreased, enhancing our efficiency,” said Kevin S. Kim, Chairman, President and Chief Executive Officer. “Our asset quality improved with an 11% decrease in criticized loans and nonperforming assets down 13% since September 30, 2024. “In 2024, we focused on strengthening our deposit base, reducing brokered deposits to 7% of total deposits as of December 31, 2024, down from 10% as of December 31, 2023. In the second half of 2024, loan growth inflected and loans receivable grew 1% on an annualized basis since June 30, 2024. With ample liquidity and a tangible common equity ratio(3) over 10% as of December 31, 2024, we are well positioned to support growth in the new year. “We are in the final stages of preparing for the integration of Territorial Savings Bank as a division of Bank of Hope, and are looking forward to building upon Territorial’s legacy. The addition of Territorial’s low-cost core deposits and residential mortgage loans with pristine asset quality will be meaningful contributors to the combined company in 2025. We anticipate the pending merger with Territorial Bancorp Inc. (NASDAQ: TBNK), the stock holding company of Territorial Savings Bank, will be completed during the first quarter of 2025, subject to regulatory approvals. “We are heartbroken to see the unprecedented destruction that the wildfires have caused in the Greater Los Angeles area. As one of the largest independent banks headquartered in this great city, we are committed to taking a leadership role in addressing the immediate and rebuilding needs of those impacted by the fires. Our recent cash donation to the United Way of Greater Los Angeles Wildfire Response Fund underscores our unwavering commitment to the community. I am confident that the impacted areas will be rebuilt stronger and better,” concluded Kim. _____________________________________ (1) Net income, excluding merger-related expenses, restructuring-related costs and gains, which included net gains on the sale of branches in Virginia, and the FDIC special assessment expense (also referred to collectively as the “notable items”), is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12. (2) Pre-provision net revenue (“PPNR”) is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12. (3) Tangible common equity ratio is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12. Operating Results for the 2024 Fourth Quarter Revenue. 2024 fourth quarter revenue of $118.0 million grew $1.4 million, or 1%, from $116.6 million for the immediately preceding third quarter. Quarter-over-quarter growth in noninterest income more than offset the decrease in net interest income before provision for credit losses. Pre-provision net revenue (“PPNR”), which is revenue less noninterest expense, was $40.4 million in the 2024 fourth quarter, up $5.0 million, or 14%, from $35.4 million for the third quarter of 2024. Excluding notable items(4), fourth quarter 2024 PPNR of $40.0 million grew 9% quarter-over-quarter. Net interest income and net interest margin. Net interest income before provision for credit losses for the 2024 fourth quarter totaled $102.1 million, a decrease of $2.7 million, or 3%, from $104.8 million in the immediately preceding third quarter. 2024 fourth quarter interest income of $226.6 million decreased 4% from $235.1 million in the immediately preceding third quarter. The quarter-over-quarter decrease in interest income reflected lower loan yields because of Federal Funds target rate cuts, $1.7 million of reversed interest income due to loans moving to nonaccrual status, as well as lower yields on and a lower volume of average interest earning cash and deposits at other banks. As of December 31, 2024, the upper Federal Funds target rate was 4.50%, down from a peak of 5.50% as of September 17, 2024. The decrease in interest income was partially offset by lower interest expense, which totaled $124.5 million in the 2024 fourth quarter, a decrease of 4% from $130.3 million in the immediately preceding third quarter. The decrease in interest expense was primarily driven by a 21 basis point quarter-over-quarter reduction in the average cost of interest bearing deposits to 4.38%, down from 4.59% in the third quarter of 2024, reflecting the impact of the Federal Funds rate cuts. The average cost of total deposits for the 2024 fourth quarter decreased 12 basis points to 3.32%, down from 3.44% for the third quarter of 2024. Net interest margin for the 2024 fourth quarter was 2.50%, down five basis points from 2.55% in the 2024 third quarter. Excluding the impact of the aforementioned reversed interest income, the net interest margin for the 2024 fourth quarter would have been 2.54%. Noninterest income. Noninterest income for the 2024 fourth quarter increased to $15.9 million, up $4.0 million, or 34%, from $11.8 million in the immediately preceding third quarter. The Company recorded net gains on the sale of SBA loans of $3.1 million in the 2024 fourth quarter, compared with $2.7 million in the immediately preceding third quarter. In the fourth quarter of 2024, the Company sold $48.4 million of SBA loans, compared with $41.4 million in the third quarter of 2024. Other noninterest income in the 2024 fourth quarter included swap fee income of $1.4 million, up from only $21,000 in the 2024 third quarter, reflecting a higher level of customer activity. During the 2024 fourth quarter, the Company recognized a net gain of $1.0 million related to the sale of its two branches in Virginia, which closed on October 1, 2024. Noninterest expense. The Company continues to closely manage expenses. Noninterest expense for the 2024 fourth quarter was $77.6 million, down $3.7 million, or 5%, from $81.3 million in the immediately preceding third quarter. Excluding notable items(5), noninterest expense for the 2024 fourth quarter was $77.0 million, down 4% from $79.8 million for the 2024 third quarter. The quarter-over-quarter decrease in noninterest expense was primarily driven by lower earned interest credit expense, which decreased $2.3 million, or 33%, from the immediately preceding third quarter due to the Federal Funds target rate cuts and a lower average balance of related deposits, as well as lower salaries and employee benefits expense, which decreased $2.1 million, or 5%, quarter-over-quarter to $42.0 million. Tax rate. The effective tax rate for the 2024 fourth quarter was 20.0%, compared with 24.7% in the immediately preceding third quarter. The quarter-over-quarter change in the effective tax rate reflected the impact of a solar tax credit investment that the Company made during the fourth quarter of 2024. For the twelve months ended December 31, 2024, the effective tax rate was 25.1%, compared with 24.9% for the 2023 full year. _____________________________________ (4) PPNR, excluding notable items, is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12. Collectively, notable items comprise merger-related expenses, restructuring-related costs and gains, which also includes a net gain on the sale of branches in Virginia, and the FDIC special assessment expense. (5) Noninterest expense, excluding notable items, is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12. Balance Sheet Summary Cash and investment securities. At December 31, 2024, cash and due from banks totaled $458.2 million, compared with $680.9 million at September 30, 2024, and $1.93 billion at December 31, 2023. The year-over-year change primarily reflected the payoff of the Company’s Bank Term Funding Program (“BTFP”) borrowings in March and April of 2024. Investment securities totaled $2.08 billion at December 31, 2024, $2.18 billion at September 30, 2024, and $2.41 billion at December 31, 2023. Loans. At December 31, 2024, loans receivable, which excludes loans held for sale, were stable quarter-over-quarter at $13.62 billion. Compared with September 30, 2024, commercial and industrial loans increased 2% quarter-over-quarter and residential mortgage loans increased 3%, partially offset by a 1% decrease in commercial real estate loans. 2024 fourth quarter average gross loans increased 0.4% quarter-over-quarter, or 2% on an annualized basis, from the 2024 third quarter. The following table sets forth the loan portfolio composition at December 31, 2024, September 30, 2024, and December 31, 2023: (dollars in thousands) (unaudited) 12/31/2024 9/30/2024 12/31/2023 Balance Percentage Balance Percentage Balance Percentage Commercial real estate (“CRE”) loans $ 8,527,008 62.6 % $ 8,630,757 63.3 % $ 8,797,884 63.6 % Commercial and industrial (“C&I”) loans 3,967,596 29.1 % 3,901,368 28.6 % 4,135,044 29.8 % Residential mortgage and other loans 1,123,668 8.2 % 1,085,863 7.9 % 920,691 6.6 % Loans receivable 13,618,272 99.9 % 13,617,988 99.8 % 13,853,619 100.0 % Loans held for sale 14,491 0.1 % 25,714 0.2 % 3,408 — % Gross loans $ 13,632,763 100.0 % $ 13,643,702 100.0 % $ 13,857,027 100.0 % Deposits. Total deposits of $14.33 billion at December 31, 2024, decreased $402.0 million, or 3%, from $14.73 billion at September 30, 2024. This decrease included $128.1 million of deposits sold in connection with the Company’s sale of its Virginia branches. In addition, the quarter-over-quarter decrease in deposits reflected typical fourth quarter outflows of noninterest bearing commercial deposits in the residential mortgage industry, and intentional run-off of higher-cost deposits. The following table sets forth the deposit composition at December 31, 2024, September 30, 2024, and December 31, 2023: (dollars in thousands) (unaudited) 12/31/2024 9/30/2024 12/31/2023 Balance Percentage Balance Percentage Balance Percentage Noninterest bearing demand deposits $ 3,377,950 23.6 % $ 3,722,985 25.3 % $ 3,914,967 26.5 % Money market, interest bearing demand, and savings deposits 5,175,735 36.1 % 5,013,305 34.0 % 4,872,029 33.0 % Time deposits 5,773,804 40.3 % 5,993,208 40.7 % 5,966,757 40.5 % Total deposits $ 14,327,489 100.0 % $ 14,729,498 100.0 % $ 14,753,753 100.0 % Gross loan-to-deposit ratio 95.2 % 92.6 % 93.9 % Borrowings. Federal Home Loan Bank and Federal Reserve Bank borrowings totaled $239.0 million at December 31, 2024, compared with $100.0 million at September 30, 2024, and $1.80 billion at December 31, 2023. The year-over-year change primarily reflected the payoff of the Company’s BTFP borrowings in March and April 2024. Credit Quality and Allowance for Credit Losses Nonperforming assets. Nonperforming assets were $90.8 million, or 0.53% of total assets, at December 31, 2024, down 13% from $103.8 million, or 0.60% of total assets, at September 30, 2024. The following table sets forth the components of nonperforming assets at December 31, 2024, September 30, 2024, and December 31, 2023: (dollars in thousands) (unaudited) 12/31/2024 9/30/2024 12/31/2023 Loans on nonaccrual status (1) $ 90,564 $ 103,602 $ 45,204 Accruing delinquent loans past due 90 days or more 229 226 261 Total nonperforming loans 90,793 103,828 45,465 Other real estate owned — — 63 Total nonperforming assets $ 90,793 $ 103,828 $ 45,528 Nonperforming assets/total assets 0.53 % 0.60 % 0.24 % _____________________________________ (1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $12.8 million, $13.1 million and $11.4 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Criticized loans. Criticized loans decreased $55.8 million, or 11%, to $450.0 million at December 31, 2024, down from $505.7 million at September 30, 2024. The criticized loans to total loans ratio improved to 3.30% at December 31, 2024, down from 3.71% at September 30, 2024. The decrease reflected payoffs, workouts and note sales of problem loans during the quarter. Net charge offs and provision for credit losses. The Company recorded net charge offs of $12.8 million in the 2024 fourth quarter, equivalent to 0.38%, annualized, of average loans. This compares with net charge offs of $5.7 million, or 0.17%, annualized, of average loans in the immediately preceding third quarter. The quarter-over-quarter change in net charge offs reflected the problem loan resolution activity in the fourth quarter. The full-year 2024 net charge off ratio was 0.19%, compared with 0.22% for the 2023 full year. The following table sets forth net charge offs and annualized net charge off ratios for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, and the full years ended December 31, 2024, and December 31, 2023: For the Three Months Ended For the Twelve Months Ended (dollars in thousands) (unaudited) 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Net charge offs $ 12,843 $ 5,749 $ 1,815 $ 26,567 $ 32,358 Annualized net charge offs/average loans 0.38 % 0.17 % 0.05 % 0.19 % 0.22 % For the 2024 fourth quarter, the Company recorded a provision for credit losses of $10.0 million. This compares with a provision for credit losses of $3.3 million in the immediately preceding third quarter. The quarter-over-quarter change in the provision for credit losses primarily reflected net charge offs in the fourth quarter of 2024. For the full year 2024, the Company recorded a provision for credit losses of $17.3 million, compared with a provision for credit losses of $31.6 million for the full year 2023. Allowance for credit losses. The allowance for credit losses totaled $150.5 million at December 31, 2024, compared with $153.3 million at September 30, 2024. The allowance coverage ratio was 1.11% of loans receivable at December 31, 2024, compared with 1.13% at September 30, 2024. The change in the allowance coverage ratio was due to a decrease in quantitative and individually evaluated loan reserves, which reflected, in part, the quarter-over-quarter reduction in criticized loans, partially offset by an increase in qualitative reserves. The following table sets forth the allowance for credit losses and the coverage ratios at December 31, 2024, September 30, 2024, and December 31, 2023: (dollars in thousands) (unaudited) 12/31/2024 9/30/2024 12/31/2023 Allowance for credit losses $ 150,527 $ 153,270 $ 158,694 Allowance for credit losses/loans receivable 1.11 % 1.13 % 1.15 % Capital At December 31, 2024, 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 December 31, 2024, September 30, 2024, and December 31, 2023: (unaudited) 12/31/2024 9/30/2024 12/31/2023 Minimum Guideline for “Well-Capitalized” Common Equity Tier 1 Capital Ratio 13.06 % 13.07 % 12.28 % 6.50 % Tier 1 Capital Ratio 13.79 % 13.79 % 12.96 % 8.00 % Total Capital Ratio 14.78 % 14.82 % 13.92 % 10.00 % Leverage Ratio 11.78 % 11.61 % 10.11 % 5.00 % At December 31, 2024, total stockholders’ equity was $2.13 billion, or $17.68 per common share, compared with $2.17 billion, or $17.97 per common share, at September 30, 2024. Tangible common equity (“TCE”) per share(6) was $13.81 at December 31, 2024, compared with $14.10 at September 30, 2024. The quarter-over-quarter change in stockholders’ equity included a $45.1 million increase in accumulated other comprehensive losses, which was impacted by market interest rates. The change in accumulated other comprehensive losses impacted book value and tangible book value by $(0.37) per share during the fourth quarter of 2024. The TCE ratio(6) was 10.05% at December 31, 2024, down 3 basis points from 10.08% at September 30, 2024, and up 119 basis points from December 31, 2023. The following table sets forth the TCE per share and the TCE ratio at December 31, 2024, September 30, 2024, and December 31, 2023: (unaudited) 12/31/2024 9/30/2024 12/31/2023 TCE per share $ 13.81 $ 14.10 $ 13.76 TCE ratio 10.05 % 10.08 % 8.86 % _____________________________________ (6) 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 Pages 10 through 12. Investor Conference Call The Company previously announced that it will host an investor conference call on Monday, January 27, 2025, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review unaudited financial results for its fourth quarter ended December 31, 2024. 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 at least 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 3, 2025, replay access code 6066063. Non-GAAP Financial Metrics This news release and accompanying financial tables contain certain non-GAAP financial measure disclosures, including net income excluding notable items, earnings per share excluding notable items, PPNR, PPNR excluding notable items, noninterest expense excluding notable items, TCE per share, TCE ratio, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items. 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 Pages 10 through 12. 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 $17.05 billion in total assets as of December 31, 2024. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, the Bank provides a full suite of commercial, corporate and consumer loans, including commercial and commercial real estate lending, SBA lending, residential mortgage and other consumer lending; deposit and fee-based products and services; international trade financing; and cash management services, foreign currency exchange solutions, and interest rate derivative products, among others. Bank of Hope operates 46 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Alabama, and Georgia. The Bank also operates SBA loan production offices, commercial loan production offices, and residential mortgage loan production offices in the United States; and a representative office in Seoul, Korea. 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 www.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. Additional Information About the Merger and Where to Find It In connection with the pending merger with Territorial Bancorp Inc., Hope Bancorp, Inc. filed with the U.S. Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4, which included a Proxy Statement/Prospectus and which was declared effective by the SEC on August 20, 2024, as further supplemented by Hope Bancorp on September 12, 2024. This earnings release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. Territorial Bancorp shareholders are encouraged to read the Registration Statement and the Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they contain important information about the pending merger. Territorial Bancorp shareholders are able to obtain a free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Hope Bancorp and Territorial Bancorp at the SEC’s Internet site (www.sec.gov). Territorial Bancorp shareholders are also able to obtain these documents, free of charge, from Territorial Bancorp at https://www.tsbhawaii.bank/tsb/investor-relations/. 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. 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, Hope Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The closing of the pending transaction with Territorial Bancorp is subject to regulatory approvals and other customary closing conditions. There is no assurance that such conditions will be met or that the pending merger will be consummated within the expected time frame, or at all. If the transaction is consummated, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Hope Bancorp and Territorial Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees and customers, may be greater than expected; and required governmental approvals of the merger may not be obtained on its proposed terms and schedule, or without regulatory constraints that may limit growth. Other risks and uncertainties include, but are not limited to: possible renewed deterioration in economic conditions in Hope Bancorp’s areas of operation or elsewhere; 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 Hope Bancorp’s allowances for credit losses; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp; the risk that any announcements relating to the pending transaction could have adverse effects on the market price of the common stock of Hope Bancorp; diversion of management’s attention from ongoing business operations and opportunities; and risks from natural disasters. For additional information concerning these and other risk factors, see Hope Bancorp’s most recent Annual Report on Form 10-K. Hope Bancorp 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: 12/31/2024 9/30/2024 % change 12/31/2023 % change Cash and due from banks $ 458,199 $ 680,857 (33 )% $ 1,928,967 (76 )% Investment securities 2,075,628 2,177,301 (5 )% 2,408,971 (14 )% Federal Home Loan Bank (“FHLB”) stock and other investments 57,196 57,158 — % 61,000 (6 )% Gross loans, including loans held for sale 13,632,763 13,643,702 — % 13,857,027 (2 )% Allowance for credit losses (150,527 ) (153,270 ) (2 )% (158,694 ) (5 )% Accrued interest receivable 51,169 51,898 (1 )% 61,720 (17 )% Premises and equipment, net 51,759 51,543 — % 50,611 2 % Goodwill and intangible assets 466,781 467,182 — % 468,385 — % Other assets 411,040 377,818 9 % 453,535 (9 )% Total assets $ 17,054,008 $ 17,354,189 (2 )% $ 19,131,522 (11 )% Liabilities: Deposits $ 14,327,489 $ 14,729,498 (3 )% $ 14,753,753 (3 )% FHLB and Federal Reserve Bank (“FRB”) borrowings 239,000 100,000 139 % 1,795,726 (87 )% Subordinated debentures and convertible notes, net 109,584 109,249 — % 108,269 1 % Accrued interest payable 93,784 107,017 (12 )% 168,174 (44 )% Other liabilities 149,646 138,640 8 % 184,357 (19 )% Total liabilities $ 14,919,503 $ 15,184,404 (2 )% $ 17,010,279 (12 )% Stockholders’ Equity: Common stock, $0.001 par value $ 138 $ 138 — % $ 138 — % Additional paid-in capital 1,445,373 1,442,993 — % 1,439,963 — % Retained earnings 1,181,533 1,174,100 1 % 1,150,547 3 % Treasury stock, at cost (264,667 ) (264,667 ) — % (264,667 ) — % Accumulated other comprehensive loss, net (227,872 ) (182,779 ) (25 )% (204,738 ) (11 )% Total stockholders’ equity 2,134,505 2,169,785 (2 )% 2,121,243 1 % Total liabilities and stockholders’ equity $ 17,054,008 $ 17,354,189 (2 )% $ 19,131,522 (11 )% Common stock shares – authorized 300,000,000 300,000,000 150,000,000 Common stock shares – outstanding 120,755,658 120,737,908 120,126,786 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 Twelve Months Ended 12/31/2024 9/30/2024 % change 12/31/2023 % change 12/31/2024 12/31/2023 % change Interest and fees on loans $ 203,828 $ 210,022 (3 )% $ 221,020 (8 )% $ 837,159 $ 892,563 (6 )% Interest on investment securities 16,930 16,741 1 % 18,398 (8 )% 68,549 66,063 4 % Interest on cash and deposits at other banks 4,694 7,507 (37 )% 29,029 (84 )% 44,668 87,361 (49 )% Interest on other investments and FHLB dividends 1,169 814 44 % 777 50 % 3,604 2,891 25 % Total interest income 226,621 235,084 (4 )% 269,224 (16 )% 953,980 1,048,878 (9 )% Interest on deposits 121,645 127,193 (4 )% 121,305 — % 495,448 441,231 12 % Interest on borrowings 2,841 3,082 (8 )% 22,003 (87 )% 30,681 81,786 (62 )% Total interest expense 124,486 130,275 (4 )% 143,308 (13 )% 526,129 523,017 1 % Net interest income before provision 102,135 104,809 (3 )% 125,916 (19 )% 427,851 525,861 (19 )% Provision for credit losses 10,000 3,280 205 % 2,400 317 % 17,280 31,592 (45 )% Net interest income after provision 92,135 101,529 (9 )% 123,516 (25 )% 410,571 494,269 (17 )% Service fees on deposit accounts 2,809 2,651 6 % 2,505 12 % 10,728 9,466 13 % Net gains on sales of SBA loans 3,063 2,722 13 % — 100 % 7,765 4,097 90 % Net gains (losses) on sales of securities available for sale 837 (326 ) N/A — 100 % 936 — 100 % Net gain on branch sales 1,006 — 100 % — 100 % 1,006 — 100 % Other income and fees 8,166 6,792 20 % 6,775 21 % 26,642 32,014 (17 )% Total noninterest income 15,881 11,839 34 % 9,280 71 % 47,077 45,577 3 % Salaries and employee benefits 42,016 44,160 (5 )% 47,364 (11 )% 177,860 207,871 (14 )% Occupancy 6,837 6,940 (1 )% 7,231 (5 )% 27,469 28,868 (5 )% Furniture and equipment 5,436 5,341 2 % 5,302 3 % 21,592 21,378 1 % Data processing and communications 2,961 3,112 (5 )% 2,976 (1 )% 12,060 11,606 4 % FDIC assessment 2,684 2,200 22 % 3,141 (15 )% 10,813 13,296 (19 )% FDIC special assessment — — — % 3,971 (100 )% 691 3,971 (83 )% Earned interest credit 4,605 6,869 (33 )% 6,505 (29 )% 23,447 22,399 5 % Restructuring-related (reversals) costs (152 ) 197 N/A 11,076 N/A 1,023 11,576 (91 )% Merger-related costs 735 1,236 (41 )% — 100 % 4,604 — 100 % Other noninterest expense 12,468 11,213 11 % 11,625 7 % 45,125 40,994 10 % Total noninterest expense 77,590 81,268 (5 )% 99,191 (22 )% 324,684 361,959 (10 )% Income before income taxes 30,426 32,100 (5 )% 33,605 (9 )% 132,964 177,887 (25 )% Income tax provision 6,089 7,941 (23 )% 7,124 (15 )% 33,334 44,214 (25 )% Net income $ 24,337 $ 24,159 1 % $ 26,481 (8 )% $ 99,630 $ 133,673 (25 )% Earnings per common share – diluted $ 0.20 $ 0.20 $ 0.22 $ 0.82 $ 1.11 Weighted average shares outstanding – diluted 121,401,285 121,159,977 120,761,112 121,108,594 120,393,257 Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands, except share and per share data) For the Three Months Ended For the Twelve Months Ended Profitability measures (annualized): 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Return on average assets (“ROA”) 0.57 % 0.56 % 0.54 % 0.56 % 0.67 % ROA excluding notable items (1) 0.56 % 0.58 % 0.76 % 0.58 % 0.73 % Return on average equity (“ROE”) 4.51 % 4.52 % 5.17 % 4.68 % 6.48 % ROE excluding notable items (1) 4.46 % 4.71 % 7.25 % 4.85 % 7.02 % Return on average tangible common equity (“ROTCE”) (1) 5.76 % 5.78 % 6.71 % 5.99 % 8.39 % ROTCE excluding notable items (1) 5.69 % 6.02 % 9.39 % 6.22 % 9.08 % Net interest margin 2.50 % 2.55 % 2.70 % 2.55 % 2.81 % Efficiency ratio (not annualized) 65.75 % 69.67 % 73.37 % 68.36 % 63.34 % Efficiency ratio excluding notable items (not annualized) (1) 65.81 % 68.44 % 62.24 % 67.18 % 60.62 % (1) ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items 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 Pages 10 through 12. Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) Three Months Ended 12/31/2024 9/30/2024 12/31/2023 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 $ 13,626,965 $ 203,828 5.95 % $ 13,574,539 $ 210,022 6.16 % $ 14,052,953 $ 221,020 6.24 % Investment securities 2,177,613 16,930 3.09 % 2,182,847 16,741 3.05 % 2,283,613 18,398 3.20 % Interest earning cash and deposits at other banks 416,467 4,694 4.48 % 570,754 7,507 5.23 % 2,142,147 29,029 5.38 % FHLB stock and other investments 49,388 1,169 9.42 % 48,956 814 6.61 % 47,587 777 6.48 % Total interest earning assets $ 16,270,433 $ 226,621 5.54 % $ 16,377,096 $ 235,084 5.71 % $ 18,526,300 $ 269,224 5.77 % INTEREST BEARING LIABILITIES: Deposits: Money market, interest bearing demand and savings $ 5,187,715 $ 50,510 3.87 % $ 4,963,727 $ 50,707 4.06 % $ 4,821,222 $ 45,662 3.76 % Time deposits 5,856,439 71,135 4.83 % 6,053,924 76,486 5.03 % 6,327,191 75,643 4.74 % Total interest bearing deposits 11,044,154 121,645 4.38 % 11,017,651 127,193 4.59 % 11,148,413 121,305 4.32 % FHLB and FRB borrowings 113,533 248 0.87 % 120,326 329 1.09 % 1,795,740 19,224 4.25 % Subordinated debentures and convertible notes 105,482 2,593 9.62 % 105,152 2,753 10.24 % 104,198 2,779 10.44 % Total interest bearing liabilities $ 11,263,169 $ 124,486 4.40 % $ 11,243,129 $ 130,275 4.61 % $ 13,048,351 $ 143,308 4.36 % Noninterest bearing demand deposits 3,546,613 3,704,088 4,113,680 Total funding liabilities/cost of funds $ 14,809,782 3.34 % $ 14,947,217 3.47 % $ 17,162,031 3.31 % Net interest income/net interest spread $ 102,135 1.14 % $ 104,809 1.10 % $ 125,916 1.41 % Net interest margin 2.50 % 2.55 % 2.70 % Cost of deposits: Noninterest bearing demand deposits $ 3,546,613 $ — — % $ 3,704,088 $ — — % $ 4,113,680 $ — — % Interest bearing deposits 11,044,154 121,645 4.38 % 11,017,651 127,193 4.59 % 11,148,413 121,305 4.32 % Total deposits $ 14,590,767 $ 121,645 3.32 % $ 14,721,739 $ 127,193 3.44 % $ 15,262,093 $ 121,305 3.15 % Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) Twelve Months Ended 12/31/2024 12/31/2023 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 $ 13,634,728 $ 837,159 6.14 % $ 14,732,166 $ 892,563 6.06 % Investment securities 2,213,068 68,549 3.10 % 2,262,840 66,063 2.92 % Interest earning cash and deposits at other banks 856,768 44,668 5.21 % 1,685,462 87,361 5.18 % FHLB stock and other investments 48,738 3,604 7.39 % 47,249 2,891 6.12 % Total interest earning assets $ 16,753,302 $ 953,980 5.69 % $ 18,727,717 $ 1,048,878 5.60 % INTEREST BEARING LIABILITIES: Deposits: Money market, interest bearing demand and savings $ 5,043,411 $ 200,070 3.97 % $ 4,858,919 $ 161,751 3.33 % Time deposits 5,954,272 295,378 4.96 % 6,409,056 279,480 4.36 % Total interest bearing deposits 10,997,683 495,448 4.51 % 11,267,975 441,231 3.92 % FHLB and FRB borrowings 531,869 19,860 3.73 % 1,618,292 69,365 4.29 % Subordinated debentures and convertible notes 104,989 10,821 10.14 % 181,125 12,421 6.76 % Total interest bearing liabilities $ 11,634,541 $ 526,129 4.52 % $ 13,067,392 $ 523,017 4.00 % Noninterest bearing demand deposits 3,679,947 4,362,043 Total funding liabilities/cost of funds $ 15,314,488 3.44 % $ 17,429,435 3.00 % Net interest income/net interest spread $ 427,851 1.17 % $ 525,861 1.60 % Net interest margin 2.55 % 2.81 % Cost of deposits: Noninterest bearing demand deposits $ 3,679,947 $ — — % $ 4,362,043 $ — — % Interest bearing deposits 10,997,683 495,448 4.51 % 11,267,975 441,231 3.92 % Total deposits $ 14,677,630 $ 495,448 3.38 % $ 15,630,018 $ 441,231 2.82 % Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) Three Months Ended Twelve Months Ended AVERAGE BALANCES: 12/31/2024 9/30/2024 % change 12/31/2023 % change 12/31/2024 12/31/2023 % change Gross loans, including loans held for sale $ 13,626,965 $ 13,574,539 — % $ 14,052,953 (3 )% $ 13,634,728 $ 14,732,166 (7 )% Investment securities 2,177,613 2,182,847 — % 2,283,613 (5 )% 2,213,068 2,262,840 (2 )% Interest earning cash and deposits at other banks 416,467 570,754 (27 )% 2,142,147 (81 )% 856,768 1,685,462 (49 )% Interest earning assets 16,270,433 16,377,096 (1 )% 18,526,300 (12 )% 16,753,302 18,727,717 (11 )% Goodwill and intangible assets 467,021 467,419 — % 468,622 — % 467,620 469,298 — % Total assets 17,228,881 17,369,169 (1 )% 19,600,942 (12 )% 17,746,408 19,806,163 (10 )% Noninterest bearing demand deposits 3,546,613 3,704,088 (4 )% 4,113,680 (14 )% 3,679,947 4,362,043 (16 )% Interest bearing deposits 11,044,154 11,017,651 — % 11,148,413 (1 )% 10,997,683 11,267,975 (2 )% Total deposits 14,590,767 14,721,739 (1 )% 15,262,093 (4 )% 14,677,630 15,630,018 (6 )% Interest bearing liabilities 11,263,169 11,243,129 — % 13,048,351 (14 )% 11,634,541 13,067,392 (11 )% Stockholders’ equity 2,156,858 2,139,861 1 % 2,048,335 5 % 2,130,140 2,061,665 3 % LOAN PORTFOLIO COMPOSITION: 12/31/2024 9/30/2024 % change 12/31/2023 % change Commercial real estate (“CRE”) loans $ 8,527,008 $ 8,630,757 (1 )% $ 8,797,884 (3 )% Commercial and industrial (“C&I”) loans 3,967,596 3,901,368 2 % 4,135,044 (4 )% Residential mortgage and other loans 1,123,668 1,085,863 3 % 920,691 22 % Loans receivable 13,618,272 13,617,988 — % 13,853,619 (2 )% Loans held for sale 14,491 25,714 (44 )% 3,408 325 % Gross loans 13,632,763 13,643,702 — % 13,857,027 (2 )% CRE LOANS BY PROPERTY TYPE: 12/31/2024 9/30/2024 % change 12/31/2023 % change Multi-tenant retail $ 1,619,505 $ 1,640,769 (1 )% $ 1,704,337 (5 )% Industrial warehouses 1,264,703 1,244,891 2 % 1,226,780 3 % Multifamily 1,208,494 1,204,734 — % 1,226,384 (1 )% Gas stations and car washes 1,027,502 1,021,537 1 % 1,030,888 — % Mixed-use facilities 771,695 826,045 (7 )% 870,664 (11 )% Hotels/motels 769,635 800,707 (4 )% 796,267 (3 )% Single-tenant retail 659,993 663,178 — % 662,705 — % Office 394,431 396,131 — % 401,821 (2 )% All other 811,050 832,765 (3 )% 878,038 (8 )% Total CRE loans $ 8,527,008 $ 8,630,757 (1 )% $ 8,797,884 (3 )% DEPOSIT COMPOSITION: 12/31/2024 9/30/2024 % change 12/31/2023 % change Noninterest bearing demand deposits $ 3,377,950 $ 3,722,985 (9 )% $ 3,914,967 (14 )% Money market, interest bearing demand, and savings 5,175,735 5,013,305 3 % 4,872,029 6 % Time deposits 5,773,804 5,993,208 (4 )% 5,966,757 (3 )% Total deposits $ 14,327,489 $ 14,729,498 (3 )% $ 14,753,753 (3 )% Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands, except share and per share data) CAPITAL & CAPITAL RATIOS: 12/31/2024 9/30/2024 12/31/2023 Total stockholders’ equity $ 2,134,505 $ 2,169,785 $ 2,121,243 Total capital $ 2,150,810 $ 2,143,477 $ 2,120,157 Common equity tier 1 ratio 13.06 % 13.07 % 12.28 % Tier 1 capital ratio 13.79 % 13.79 % 12.96 % Total capital ratio 14.78 % 14.82 % 13.92 % Leverage ratio 11.78 % 11.61 % 10.11 % Total risk weighted assets $ 14,549,708 $ 14,466,152 $ 15,230,302 Book value per common share $ 17.68 $ 17.97 $ 17.66 Tangible common equity (“TCE”) per share (1) $ 13.81 $ 14.10 $ 13.76 TCE ratio (1) 10.05 % 10.08 % 8.86 % (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. ALLOWANCE FOR CREDIT LOSSES CHANGES: Three Months Ended Twelve Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Balance at beginning of period $ 153,270 $ 156,019 $ 158,758 $ 158,694 $ 158,809 $ 158,694 $ 162,359 ASU 2022-02 day 1 adoption impact — — — — — — (407 ) Provision for credit losses on loans 10,100 3,000 1,700 3,600 1,700 18,400 29,100 Recoveries 704 534 2,099 1,184 306 4,521 5,162 Charge offs (13,547 ) (6,283 ) (6,538 ) (4,720 ) (2,121 ) (31,088 ) (37,520 ) Balance at end of period $ 150,527 $ 153,270 $ 156,019 $ 158,758 $ 158,694 $ 150,527 $ 158,694 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Allowance for unfunded loan commitments $ 2,723 $ 2,823 $ 2,543 $ 2,843 $ 3,843 Three Months Ended Twelve Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Provision for credit losses on loans $ 10,100 $ 3,000 $ 1,700 $ 3,600 $ 1,700 $ 18,400 $ 29,100 Provision (credit) for unfunded loan commitments (100 ) 280 (300 ) (1,000 ) 700 (1,120 ) 2,492 Provision for credit losses $ 10,000 $ 3,280 $ 1,400 $ 2,600 $ 2,400 $ 17,280 $ 31,592 Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) Three Months Ended Twelve Months Ended NET LOAN CHARGE OFFS (RECOVERIES): 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 CRE loans $ 156 $ 372 $ 514 $ (497 ) $ 1,560 $ 545 $ (338 ) C&I loans 12,607 5,287 3,900 4,072 138 25,866 32,388 Residential mortgage and other loans 80 90 25 (39 ) 117 156 308 Net loan charge offs $ 12,843 $ 5,749 $ 4,439 $ 3,536 $ 1,815 $ 26,567 $ 32,358 Net charge offs/average loans (annualized) 0.38 % 0.17 % 0.13 % 0.10 % 0.05 % 0.19 % 0.22 % NONPERFORMING ASSETS: 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Loans on nonaccrual status (1) $ 90,564 $ 103,602 $ 67,003 $ 59,526 $ 45,204 Accruing delinquent loans past due 90 days or more 229 226 273 47,290 261 Total nonperforming loans 90,793 103,828 67,276 106,816 45,465 Other real estate owned (“OREO”) — — — — 63 Total nonperforming assets $ 90,793 $ 103,828 $ 67,276 $ 106,816 $ 45,528 Nonperforming assets/total assets 0.53 % 0.60 % 0.39 % 0.59 % 0.24 % Nonperforming loans/loans receivable 0.67 % 0.76 % 0.50 % 0.78 % 0.33 % Nonaccrual loans/loans receivable 0.67 % 0.76 % 0.49 % 0.43 % 0.33 % Allowance for credit losses/loans receivable 1.11 % 1.13 % 1.15 % 1.16 % 1.15 % Allowance for credit losses/nonperforming loans 165.79 % 147.62 % 231.91 % 148.63 % 349.05 % (1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $12.8 million, $13.1 million, $11.2 million, $10.9 million, and $11.4 million, at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively. NONACCRUAL LOANS BY TYPE: 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 CRE loans $ 23,396 $ 72,228 $ 27,292 $ 37,836 $ 33,932 C&I loans 60,807 24,963 33,456 15,070 5,013 Residential mortgage and other loans 6,361 6,411 6,255 6,620 6,259 Total nonaccrual loans $ 90,564 $ 103,602 $ 67,003 $ 59,526 $ 45,204 Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands) ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE: 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 30 - 59 days past due $ 8,681 $ 10,746 $ 9,073 $ 2,273 $ 2,833 60 - 89 days past due 5,164 1,539 552 313 1,289 Total accruing delinquent loans 30-89 days past due $ 13,845 $ 12,285 $ 9,625 $ 2,586 $ 4,122 ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE: 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 CRE loans $ 3,205 $ 816 $ 5,586 $ 1,639 $ 2,160 C&I loans 1,288 9,037 2,530 551 1,643 Residential mortgage and other loans 9,352 2,432 1,509 396 319 Total accruing delinquent loans 30-89 days past due $ 13,845 $ 12,285 $ 9,625 $ 2,586 $ 4,122 CRITICIZED LOANS: 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Special mention loans $ 179,073 $ 184,443 $ 204,167 $ 215,183 $ 178,992 Classified loans 270,896 321,283 243,635 206,350 143,449 Total criticized loans $ 449,969 $ 505,726 $ 447,802 $ 421,533 $ 322,441 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. TANGIBLE COMMON EQUITY (“TCE”) 12/31/2024 9/30/2024 12/31/2023 Total stockholders’ equity $ 2,134,505 $ 2,169,785 $ 2,121,243 Less: Goodwill and core deposit intangible assets, net (466,781 ) (467,182 ) (468,385 ) TCE $ 1,667,724 $ 1,702,603 $ 1,652,858 Total assets $ 17,054,008 $ 17,354,189 $ 19,131,522 Less: Goodwill and core deposit intangible assets, net (466,781 ) (467,182 ) (468,385 ) Tangible assets $ 16,587,227 $ 16,887,007 $ 18,663,137 TCE ratio 10.05 % 10.08 % 8.86 % Common shares outstanding 120,755,658 120,737,908 120,126,786 TCE per share $ 13.81 $ 14.10 $ 13.76 Three Months Ended Twelve Months Ended RETURN ON AVERAGE TANGIBLE COMMON EQUITY (“ROTCE”) 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Average stockholders’ equity $ 2,156,858 $ 2,139,861 $ 2,048,335 $ 2,130,140 $ 2,061,665 Less: Average goodwill and core deposit intangible assets, net (467,021 ) (467,419 ) (468,622 ) (467,620 ) (469,298 ) Average TCE $ 1,689,837 $ 1,672,442 $ 1,579,713 $ 1,662,520 $ 1,592,367 Net income $ 24,337 $ 24,159 $ 26,481 $ 99,630 $ 133,673 ROTCE (annualized) 5.76 % 5.78 % 6.71 % 5.99 % 8.39 % Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands, except share and per share data) Three Months Ended Twelve Months Ended PRE-PROVISION NET REVENUE (“PPNR”) 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Net interest income before provision for credit losses $ 102,135 $ 104,809 $ 125,916 $ 427,851 $ 525,861 Noninterest income 15,881 11,839 9,280 47,077 45,577 Revenue 118,016 116,648 135,196 474,928 571,438 Less: Noninterest expense 77,590 81,268 99,191 324,684 361,959 PPNR $ 40,426 $ 35,380 $ 36,005 $ 150,244 $ 209,479 Notable items: FDIC special assessment expense — — 3,971 691 3,971 Restructuring-related (gains) costs, net (including gain on branch sale) (1,158 ) 197 11,076 17 11,576 Merger-related costs 735 1,236 — 4,604 — Total notable items (423 ) 1,433 15,047 5,312 15,547 PPNR, excluding notable items $ 40,003 $ 36,813 $ 51,052 $ 155,556 $ 225,026 Three Months Ended Twelve Months Ended PROFITABILITY RATIOS EXCLUDING NOTABLE ITEMS 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Net income $ 24,337 $ 24,159 $ 26,481 $ 99,630 $ 133,673 Notable items: FDIC special assessment expense — — 3,971 691 3,971 Restructuring-related (gains) costs, net (including gain on branch sale) (1,158 ) 197 11,076 17 11,576 Merger-related costs 735 1,236 — 4,604 — Total notable items (423 ) 1,433 15,047 5,312 15,547 Less: tax provision (125 ) 421 4,427 1,562 4,574 Total notable items, net of tax provision (298 ) 1,012 10,620 3,750 10,973 Net income excluding notable items $ 24,039 $ 25,171 $ 37,101 $ 103,380 $ 144,646 Diluted common shares 121,401,285 121,159,977 120,761,112 121,108,594 120,393,257 EPS excluding notable items $ 0.20 $ 0.21 $ 0.31 $ 0.85 $ 1.20 Average Assets $ 17,228,881 $ 17,369,169 $ 19,600,942 $ 17,746,408 $ 19,806,163 ROA excluding notable items (annualized) 0.56 % 0.58 % 0.76 % 0.58 % 0.73 % Average Equity $ 2,156,858 $ 2,139,861 $ 2,048,335 $ 2,130,140 $ 2,061,665 ROE excluding notable items (annualized) 4.46 % 4.71 % 7.25 % 4.85 % 7.02 % Average TCE $ 1,689,837 $ 1,672,442 $ 1,579,713 $ 1,662,520 $ 1,592,367 ROTCE excluding notable items (annualized) 5.69 % 6.02 % 9.39 % 6.22 % 9.08 % Hope Bancorp, Inc. Selected Financial Data Unaudited (dollars in thousands, except share and per share data) Three Months Ended Twelve Months Ended EFFICIENCY RATIO EXCLUDING NOTABLE ITEMS 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Noninterest expense $ 77,590 $ 81,268 $ 99,191 $ 324,684 $ 361,959 Less: notable items: FDIC special assessment expense — — (3,971 ) (691 ) (3,971 ) Restructuring-related reversals (costs) 152 (197 ) (11,076 ) (1,023 ) (11,576 ) Merger-related costs (735 ) (1,236 ) — (4,604 ) — Noninterest expense excluding notable items $ 77,007 $ 79,835 $ 84,144 $ 318,366 $ 346,412 Revenue $ 118,016 $ 116,648 $ 135,196 $ 474,928 $ 571,438 Less: notable items: Net gain on branch sale (1,006 ) — — (1,006 ) — Revenue excluding notable items $ 117,010 $ 116,648 $ 135,196 $ 473,922 $ 571,438 Efficiency ratio excluding notable items 65.81 % 68.44 % 62.24 % 67.18 % 60.62 %

Hope Bancorp Reports 2024 Fourth Quarter and Full-Year Financial Results

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Why Bullish?

How important is it?

Why Short Term?

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