Business Wire | Jan 26, 2021 04:46PM EST

Hope Bancorp Reports 2020 Fourth Quarter Financial Results

Jan. 26, 2021

LOS ANGELES--(BUSINESS WIRE)--Jan. 26, 2021--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 year ended December 31, 2020.

For the three months ended December 31, 2020, net income totaled $28.3 million, or $0.23 per diluted common share. This compares with net income of $30.5 million, or $0.25 per diluted common share, in the third quarter of 2020 and $43.0 million, or $0.34 per diluted common share, in the fourth quarter of 2019. For the year ended December 31, 2020, net income totaled $111.5 million, or $0.90 per diluted common share, compared with net income of $171.0 million, or $1.35 per diluted common share for the year ended December 31, 2019.

"Fourth quarter results represent a continuation of the many positive trends we have delivered in 2020 and underscore how well we have been able to manage through a year that has been plagued by a global pandemic," said Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc. "Notwithstanding the challenging business environment, we recorded very strong loan originations of $844 million during the quarter. We are also extremely pleased with the success of our expanded commercial lending capabilities, with commercial loans accounting for 52% of new loan production during the fourth quarter of 2020. New commercial customer relationships that we have won during the year have been valuable contributors to our deposit achievements as well, with total deposits increasing 2% quarter-over-quarter and noninterest bearing deposits expanding to a record 34% of total deposits at the end of 2020. The improved mix in our deposit composition and reductions in deposit costs led to a second consecutive quarter of margin expansion with our net interest margin increasing 11 basis points quarter-over-quarter to 3.02% for the fourth quarter. We also continued to maintain a tight grip on expenses with our efficiency ratio improving to 53.77% for the 2020 fourth quarter.

"With the highly effective vaccines in distribution and the support of additional government stimulus programs, it appears the groundwork for a faster economic recovery is being paved, and we believe we are well positioned with a stronger allowance coverage ratio that we have prudently built to date," said Kim. "2020 required more commitment and dedication from our employees than any period in the history of our Bank, and I am extremely proud of how we, as a team, adapted and succeeded this last year. As a result of all of the challenges we have successfully endured this year, I have great conviction that we are a stronger franchise today than ever before, and we move forward in 2021 with cautious optimism that we will indeed get through this unprecedented period of time together and deliver increased value to all the stakeholders of Bank of Hope."

Q4 2020 Highlights

* Net interest income before provision for credit losses increased 3% quarter-over-quarter to $120.8 million, largely reflecting reduced interest expense due to lower cost of deposits. * Net interest margin expanded 11 basis points quarter-over-quarter. * Noninterest bearing demand deposits increased 7% quarter-over-quarter and accounted for 34% of total deposits at year-end. * Total cost of deposits decreased 16 basis points quarter-over-quarter benefiting from an on going positive mix-shift to lower-cost core deposits. * Loan originations totaled $844.2 million and contributed to a 3.4% increase in loans receivable quarter-over-quarter, or 13.5% annualized. * Noninterest expenses continued to be well managed with efficiency ratio improving to 53.77% from 54.31% quarter-over-quarter and noninterest expense to average assets improving to 1.69% from 1.73%

Financial Highlights

(dollars in thousands, except At or for the Three Months Endedper share data) (unaudited)

12/31/2020 9/30/2020 12/31/2019

Net income $ 28,319 $ 30,490 $ 43,009

Diluted earnings per share $ 0.23 $ 0.25 $ 0.34

Net interest income before $ 120,756 $ 117,637 $ 113,508 provision for loan losses

Net interest margin 3.02 % 2.91 % 3.16 %

Noninterest income $ 11,415 $ 17,513 $ 12,979

Noninterest expense $ 71,063 $ 73,406 $ 70,429

Net loans receivable $ 13,356,472 $ 12,940,376 $ 12,181,863

Deposits $ 14,333,912 $ 14,008,356 $ 12,527,364

Total cost of deposits 0.48 % 0.64 % 1.49 %

Nonaccrual loans ^(1) (2) $ 85,238 $ 69,205 $ 54,785

Nonperforming loans to loans 0.91 % 0.81 % 0.80 %receivable ^(1) (2)

ACL to loans receivable ^(3) 1.52 % 1.37 % 0.77 %

ACL to nonaccrual loans ^(1) 242.55 % 259.88 % 171.84 %(2)(3)

ACL to nonperforming assets ^ 144.24 % 144.36 % 77.08 %(1) (2)(3)

Provision for credit losses $ 27,500 $ 22,000 $ 1,000

Net charge offs $ 608 $ 3,922 $ 738

Return on average assets 0.67 % 0.72 % 1.13 %("ROA")

Return on average equity 5.54 % 5.98 % 8.46 %("ROE")

Return on average tangible 7.21 % 7.80 % 11.04 %common equity ("ROTCE") ^(4)

Noninterest expense / average 1.69 % 1.73 % 1.85 %assets

Efficiency ratio 53.77 % 54.31 % 55.68

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation

(2)

Excludes purchased credit-impaired loans for December 31, 2019

(3)

Allowance for credit losses for current-year periods were calculated under the CECL methodology while allowance for loan losses for the prior-year period was calculated under the incurred loss methodology.

(4)

Return on average tangible common equity is a non-GAAP financial measure. A reconciliation of the Company's return on average tangible common equity is provided in the accompanying financial information on Table Page 10.

Operating Results for the 2020 Fourth Quarter

Net interest income before provision for credit losses for the 2020 fourth quarter increased 3% to $120.8 million from $117.6 million in the 2020 third quarter and increased 6% from $113.5 million in the year-ago fourth quarter. As with the preceding third quarter, the Company attributed the increases primarily to meaningful reductions in interest expense due to lower cost of deposits and lower average FHLB borrowing balances.

The net interest margin for the 2020 fourth quarter increased 11 basis points to 3.02% from 2.91% in the preceding third quarter, reflecting the benefits of lower deposit costs and reductions in cash on the Company's balance sheet, partially offset by lower weighted average yield on loans. The net interest margin in the prior-year fourth quarter was 3.16%.

The weighted average yield on loans for the 2020 fourth quarter was 4.03%, compared with 4.20% in the preceding third quarter, largely reflecting a significant increase in the lower-yielding warehouse line balances during the quarter and lower accretion income. The weighted average yield on loans for the 2019 fourth quarter was 5.04%.

The weighted average cost of deposits for the 2020 fourth quarter decreased for the fifth consecutive quarter to 0.48%, representing a 16 basis point decrease from 0.64% for the 2020 third quarter and a 101 basis point decrease from 1.49% for the 2019 fourth quarter. The Company attributed the significant improvements in the weighted average cost of deposits to a continuing shift in its deposit mix to lower-cost core deposits and the ongoing downward repricing of time deposits. Noninterest bearing demand deposits increased 7% quarter-over-quarter and increased 55% year-over-year and accounted for 34%, 32% and 25% of total deposits at December 31, 2020, September 30, 2020 and December 31, 2019, respectively.

Noninterest income totaled $11.4 million for the 2020 fourth quarter, compared with $17.5 million in the preceding third quarter. The largest factor contributing to the decrease was a $7.5 million net gain on the sale of $161 million of available-for-sale investment securities in the preceding third quarter, compared with zero in the 2020 fourth quarter. In addition, net gains on sales of other loans decreased to $1.6 million for the 2020 fourth quarter from $2.9 million for the preceding third quarter. These decreases were partially offset by an increase in other income and fees in the 2020 fourth quarter, reflecting higher levels of swap fee income and a gain in the fair value change in derivatives. Noninterest income in the 2019 fourth quarter totaled $13.0 million.

Noninterest expense for the 2020 fourth quarter decreased to $71.1 million from $73.4 million for the preceding third quarter. Noninterest expense for the 2020 fourth quarter included $2.4 million in branch restructuring costs while the 2020 third quarter included a $3.6 million FHLB prepayment penalty. For the 2019 fourth quarter, noninterest expense totaled $70.4 million.

Salaries and employee benefits expense totaled $40.9 million, $40.7 million and $39.8 million for the 2020 fourth quarter, 2020 third quarter and 2019 fourth quarter.

Noninterest expense as a percentage of average assets improved to 1.69% for the 2020 fourth quarter from 1.73% for the 2020 third quarter and from 1.85% for the 2019 fourth quarter.

The effective tax rate for the 2020 fourth quarter was 15.74%, compared with 23.3% for the preceding third quarter and 21.9% in the year-ago fourth quarter. The decrease in the effective tax rate for 2020 fourth quarter reflects lower tax provision based on adjustments to the applicable state apportionment factors.

Balance Sheet Summary

New loan originations funded during the 2020 fourth quarter totaled $844.2 million and included SBA loan production of $25.5 million and residential mortgage loan originations of $62.5 million. In addition, two new warehouse mortgage lines of credit were booked during the 2020 fourth quarter, of which $106.8 million was funded as of December 31, 2020. For the preceding 2020 third quarter, new loan originations funded totaled $782.4 million, including SBA loan originations of $33.3 million, residential mortgage loan originations of $102.3 million and four new warehouse mortgages lines of credit, of which $301 million was funded as of September 30, 2020. In the year-ago fourth quarter, new loan originations funded totaled $847.6 million, including SBA loan production of $61.8 million and residential mortgage loan originations of $64.2 million. There were no new warehouse mortgage lines of credit established in the 2019 fourth quarter.

At December 31, 2020, loans receivable increased 3.4% to $13.56 billion from $13.12 billion at September 30, 2020 and increased 10.5% from $12.28 billion at December 31, 2019.

Total deposits at December 31, 2020 increased 2.3% to $14.33 billion from $14.01 billion at September 30, 2020 and increased 14.4% from $12.53 billion at December 31, 2019.

Following is the deposit composition as of December 31, 2020, September 30, 2020 and December 31, 2019:

(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation

(2) Excludes purchased credit-impaired loans for December 31, 2019

Allowance for credit losses for current-year periods were calculated under(3) the CECL methodology while allowance for loan losses for the prior-year period was calculated under the incurred loss methodology.

Return on average tangible common equity is a non-GAAP financial measure. A(4) reconciliation of the Company's return on average tangible common equity is provided in the accompanying financial information on Table Page 10.

Operating Results for the 2020 Fourth Quarter

Net interest income before provision for credit losses for the 2020 fourth quarter increased 3% to $120.8 million from $117.6 million in the 2020 third quarter and increased 6% from $113.5 million in the year-ago fourth quarter. As with the preceding third quarter, the Company attributed the increases primarily to meaningful reductions in interest expense due to lower cost of deposits and lower average FHLB borrowing balances.

The net interest margin for the 2020 fourth quarter increased 11 basis points to 3.02% from 2.91% in the preceding third quarter, reflecting the benefits of lower deposit costs and reductions in cash on the Company's balance sheet, partially offset by lower weighted average yield on loans. The net interest margin in the prior-year fourth quarter was 3.16%.

The weighted average yield on loans for the 2020 fourth quarter was 4.03%, compared with 4.20% in the preceding third quarter, largely reflecting a significant increase in the lower-yielding warehouse line balances during the quarter and lower accretion income. The weighted average yield on loans for the 2019 fourth quarter was 5.04%.

The weighted average cost of deposits for the 2020 fourth quarter decreased for the fifth consecutive quarter to 0.48%, representing a 16 basis point decrease from 0.64% for the 2020 third quarter and a 101 basis point decrease from 1.49% for the 2019 fourth quarter. The Company attributed the significant improvements in the weighted average cost of deposits to a continuing shift in its deposit mix to lower-cost core deposits and the ongoing downward repricing of time deposits. Noninterest bearing demand deposits increased 7% quarter-over-quarter and increased 55% year-over-year and accounted for 34%, 32% and 25% of total deposits at December 31, 2020, September 30, 2020 and December 31, 2019, respectively.

Noninterest income totaled $11.4 million for the 2020 fourth quarter, compared with $17.5 million in the preceding third quarter. The largest factor contributing to the decrease was a $7.5 million net gain on the sale of $161 million of available-for-sale investment securities in the preceding third quarter, compared with zero in the 2020 fourth quarter. In addition, net gains on sales of other loans decreased to $1.6 million for the 2020 fourth quarter from $2.9 million for the preceding third quarter. These decreases were partially offset by an increase in other income and fees in the 2020 fourth quarter, reflecting higher levels of swap fee income and a gain in the fair value change in derivatives. Noninterest income in the 2019 fourth quarter totaled $13.0 million.

Noninterest expense for the 2020 fourth quarter decreased to $71.1 million from $73.4 million for the preceding third quarter. Noninterest expense for the 2020 fourth quarter included $2.4 million in branch restructuring costs while the 2020 third quarter included a $3.6 million FHLB prepayment penalty. For the 2019 fourth quarter, noninterest expense totaled $70.4 million.

Salaries and employee benefits expense totaled $40.9 million, $40.7 million and $39.8 million for the 2020 fourth quarter, 2020 third quarter and 2019 fourth quarter.

Noninterest expense as a percentage of average assets improved to 1.69% for the 2020 fourth quarter from 1.73% for the 2020 third quarter and from 1.85% for the 2019 fourth quarter.

The effective tax rate for the 2020 fourth quarter was 15.74%, compared with 23.3% for the preceding third quarter and 21.9% in the year-ago fourth quarter. The decrease in the effective tax rate for 2020 fourth quarter reflects lower tax provision based on adjustments to the applicable state apportionment factors.

Balance Sheet Summary

New loan originations funded during the 2020 fourth quarter totaled $844.2 million and included SBA loan production of $25.5 million and residential mortgage loan originations of $62.5 million. In addition, two new warehouse mortgage lines of credit were booked during the 2020 fourth quarter, of which $106.8 million was funded as of December 31, 2020. For the preceding 2020 third quarter, new loan originations funded totaled $782.4 million, including SBA loan originations of $33.3 million, residential mortgage loan originations of $102.3 million and four new warehouse mortgages lines of credit, of which $301 million was funded as of September 30, 2020. In the year-ago fourth quarter, new loan originations funded totaled $847.6 million, including SBA loan production of $61.8 million and residential mortgage loan originations of $64.2 million. There were no new warehouse mortgage lines of credit established in the 2019 fourth quarter.

At December 31, 2020, loans receivable increased 3.4% to $13.56 billion from $13.12 billion at September 30, 2020 and increased 10.5% from $12.28 billion at December 31, 2019.

Total deposits at December 31, 2020 increased 2.3% to $14.33 billion from $14.01 billion at September 30, 2020 and increased 14.4% from $12.53 billion at December 31, 2019.

Following is the deposit composition as of December 31, 2020, September 30, 2020 and December 31, 2019:

(dollars in % %thousands) 12/31/2020 9/30/2020 change 12/31/2019 change(unaudited)

Noninterestbearing $ 4,814,254 $ 4,488,529 7 % $ 3,108,687 55 %demanddeposits

Money market 5,232,413 4,763,893 10 % 3,985,556 31 %and other

Saving 300,770 308,943 (3 )% 274,151 10 %deposits

Time 3,986,475 4,446,991 (10 )% 5,158,970 (23 )%deposits

Totaldeposit $ 14,333,912 $ 14,008,356 2 % $ 12,527,364 14 %balances

Following is the deposit composition as a percentage of total deposits as of December 31, 2020, September 30, 2020 and December 31, 2019 and a breakdown of cost of deposits for the quarters ended December 31, 2020, September 30, 2020 and December 31, 2019:

Deposit Breakdown Cost of Deposits

(dollars in thousands) 12/31/ 9/30/ 12/31/ Q4 Q3 Q4(unaudited) 2020 2020 2019 2020 2020 2019

Noninterest bearing 33.6 % 32.1 % 24.8 % - % - % - %demand deposits

Money market and other 36.5 % 34.0 % 31.8 % 0.45 % 0.53 % 1.61 %

Saving deposits 2.1 % 2.2 % 2.2 % 1.17 % 1.19 % 1.12 %

Time deposits 27.8 % 31.7 % 41.2 % 0.98 % 1.30 % 2.29 %

Total deposit balances 100.0 % 100.0 % 100.0 % 0.48 % 0.64 % 1.49 %

Allowance for Credit Losses

The 2020 fourth quarter provision for credit losses under the CECL methodology was $27.5 million, compared with $22.0 million for the preceding third quarter. This compares with a provision for loan losses under the prior incurred loss methodology of $1.0 million for the 2019 fourth quarter.

The provision for credit losses for the 2020 fourth quarter generally utilizes the most recent available Moody's Analytics Baseline scenario, as well as more specific information, including updated CRE market data which reflects deterioration primarily in the hospitality industry, updated qualitative factors in the Company's ACL methodology, and downgrades following the receipt of updated financial statements of the borrowers. As such, the buildup of the reserves in the 2020 fourth quarter was largely driven by additional allocations made to the hotel and motel portfolio as the Company continued to assess the full impact of the pandemic on this sector of its portfolio.

Following is the Allowance for Credit Losses as of December 31, 2020, September 30, 2020 and December 31, 2019:

(dollars in thousands) (unaudited) 12/31/2020 9/30/2020 12/31/2019

Allowance for credit losses $ 206,741 $ 179,849 $ 94,144

Allowance for credit loss/loans 1.52 % 1.37 % 0.77 %receivable

Allowance for credit losses/nonperforming 167.80 % 169.40 % 96.03 %loans

Credit Quality

Following are the components of nonperforming assets as of December 31, 2020, September 30, 2020 and December 31, 2019:

(dollars in thousands) (unaudited) 12/31/ 9/30/2020 12/31/ 2020 2019

Loans on nonaccrual status ^(1) $ 85,238 $ 69,205 $ 54,785

Delinquent loans 90 days or more on accrual 614 1,537 7,547status ^(2)

Accruing troubled debt restructured loans 37,354 35,429 35,709

Total nonperforming loans 123,206 106,171 98,041

Other real estate owned 20,121 18,410 24,091

Total nonperforming assets $ 143,327 $ 124,581 $ 122,132

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $26.5 million, $26.2 million, and $28.1 million, at December 31, 2020, September 30, 2020, and December 31, 2019, respectively.

(2)

Excludes PCI loans totaling $13.2 million at December 31, 2019.

Following are the components of criticized loan balances as of December 31, 2020, September 30, 2020 and December 31, 2019:

Excludes delinquent SBA loans that are guaranteed and currently in(1) liquidation totaling $26.5 million, $26.2 million, and $28.1 million, at December 31, 2020, September 30, 2020, and December 31, 2019, respectively.

(2) Excludes PCI loans totaling $13.2 million at December 31, 2019.

Following are the components of criticized loan balances as of December 31, 2020, September 30, 2020 and December 31, 2019:

(dollars in thousands) (unaudited) 12/31/2020 9/30/2020 12/31/2019

Special Mention ^(3) $ 184,941 $ 153,388 $ 141,452

Classified ^(3) 366,557 318,542 259,291

Criticized $ 551,498 $ 471,930 $ 400,743

(3)

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

During the 2020 fourth quarter, net charge offs totaled $608,000, or 0.02% of average loans receivable on an annualized basis. This compares with net charge offs of $3.9 million, or 0.12% of average loans receivable on an annualized basis for the 2020 third quarter and net charge offs for the 2019 fourth quarter of $738,000, or 0.02% of average loans receivable on an annualized basis.

Capital

At December 31, 2020, the Company and the Bank continued to exceed all regulatory capital requirements to be classified as a "well-capitalized" financial institution. Following are capital ratios for the Company as of December 31, 2020, September 30, 2020 and December 31, 2019:

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

During the 2020 fourth quarter, net charge offs totaled $608,000, or 0.02% of average loans receivable on an annualized basis. This compares with net charge offs of $3.9 million, or 0.12% of average loans receivable on an annualized basis for the 2020 third quarter and net charge offs for the 2019 fourth quarter of $738,000, or 0.02% of average loans receivable on an annualized basis.

Capital

At December 31, 2020, the Company and the Bank continued to exceed all regulatory capital requirements to be classified as a "well-capitalized" financial institution. Following are capital ratios for the Company as of December 31, 2020, September 30, 2020 and December 31, 2019:

Minimum Guideline(unaudited) 12/31/ 9/30/ 12/31/ for 2020 2020 2019 "Well-Capitalized" Bank

Common Equity Tier 1 10.94% 11.36% 11.76% 6.50%Capital

Tier 1 Leverage Ratio 10.22% 10.02% 11.22% 5.00%

Tier 1 Risk-Based Ratio 11.64% 12.09% 12.51% 8.00%

Total Risk-Based Ratio 12.87% 13.19% 13.23% 10.00%

Following are tangible common equity ("TCE") per share and TCE as a percentage of tangible assets as of December 31, 2020, September 30, 2020 and December 31, 2019:

(unaudited) 12/31/ 9/30/2020 12/31/ 2020 2019

Tangible common equity per share ^(1) $12.81 $12.70 $12.40

Tangible common equity to tangible assets ^ 9.50% 9.63% 10.27%(2)

(1)

Tangible common equity represents common equity less goodwill and net other intangible assets. Tangible common equity per share represents tangible common equity divided by the number of shares issued and outstanding. Both tangible common equity and tangible common equity per share are non-GAAP financial measures. A reconciliation of the Company's total stockholders' equity to tangible common equity is provided in the accompanying financial information on Table Page 10.

(2)

Tangible assets represent total assets less goodwill and net other intangible assets. Tangible common equity to tangible assets is the ratio of tangible common equity over tangible assets. Tangible common equity to tangible assets is a non-GAAP financial measure. A reconciliation of the Company's total assets to tangible assets is provided in the accompanying financial information on Table Page 10.

Management reviews tangible common equity to tangible assets ratio in evaluating the Company's and the Bank's capital levels and has included these figures and tangible common equity per share figures in response to market participant interest in tangible common equity as a measure of capital. A reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Wednesday, January 27, 2021 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its fourth quarter ended December 31, 2020 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 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 3, 2021, replay access code 10150976.

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 $17.1 billion in total assets as of December 31, 2020. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 58 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern 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.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.

Forward-Looking Statements

Some statements in this press 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. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market and statements regarding our business strategies, objectives and vision. 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, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company's actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible deterioration in economic conditions in our areas of operation; 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 the Company's allowances for credit losses, regulatory risks associated with current and future regulations, and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The Company 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.

Tangible common equity represents common equity less goodwill and net other intangible assets. Tangible common equity per share represents tangible common equity divided by the number of shares issued and outstanding. Both(1) tangible common equity and tangible common equity per share are non-GAAP financial measures. A reconciliation of the Company's total stockholders' equity to tangible common equity is provided in the accompanying financial information on Table Page 10.

Tangible assets represent total assets less goodwill and net other intangible assets. Tangible common equity to tangible assets is the ratio(2) of tangible common equity over tangible assets. Tangible common equity to tangible assets is a non-GAAP financial measure. A reconciliation of the Company's total assets to tangible assets is provided in the accompanying financial information on Table Page 10.

Management reviews tangible common equity to tangible assets ratio in evaluating the Company's and the Bank's capital levels and has included these figures and tangible common equity per share figures in response to market participant interest in tangible common equity as a measure of capital. A reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Wednesday, January 27, 2021 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its fourth quarter ended December 31, 2020 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 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 3, 2021, replay access code 10150976.

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 $17.1 billion in total assets as of December 31, 2020. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 58 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern 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.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.

Forward-Looking Statements

Some statements in this press 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. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market and statements regarding our business strategies, objectives and vision. 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, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company's actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible deterioration in economic conditions in our areas of operation; 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 the Company's allowances for credit losses, regulatory risks associated with current and future regulations, and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The Company 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 12/31/2020 9/30/2020 % 12/31/2019 % change change

Cash and due $ 350,579 $ 629,133 (44 )% $ 698,567 (50 )from banks %

Securitiesavailable for 2,285,611 2,060,991 11 % 1,715,987 33 %sale, at fairvalue

Federal HomeLoan Bank("FHLB") 105,591 97,305 9 % 97,659 8 %stock andotherinvestments

Loans heldfor sale, at )the lower of 17,743 9,170 93 % 54,271 (67 %cost or fairvalue

Loans 13,563,213 13,120,225 3 % 12,276,007 10 %receivable

Allowance for (206,741 ) (179,849 ) (15 )% (94,144 ) (120 )credit losses %

Net loans 13,356,472 12,940,376 3 % 12,181,863 10 %receivable

Accruedinterest 59,430 57,989 2 % 30,772 93 %receivable

Premises and )equipment, 48,409 49,552 (2 )% 52,012 (7 %net

Bank ownedlife 76,765 77,388 (1 )% 76,339 1 %insurance

Goodwill 464,450 464,450 - % 464,450 - %

Servicing 12,692 13,718 (7 )% 16,417 (23 )assets %

Other )intangible 9,708 10,239 (5 )% 11,833 (18 %assets, net

Other assets 319,214 323,456 (1 )% 267,270 19 %

Total assets $ 17,106,664 $ 16,733,767 2 % $ 15,667,440 9 %



Liabilities

Deposits $ 14,333,912 $ 14,008,356 2 % $ 12,527,364 14 %

FHLB advances 250,000 200,000 25 % 625,000 (60 ) %

Convertible 204,565 203,270 1 % 199,458 3 %notes, net

Subordinated 104,178 103,889 - % 103,035 1 %debentures

Accrued )interest 14,706 21,991 (33 )% 33,810 (57 %payable

Other 145,558 155,700 (7 )% 142,762 2 %liabilities

Total 15,052,919 14,693,206 2 % 13,631,429 10 %liabilities



Stockholders' Equity

Common stock,$0.001 par 136 136 - % 136 - %value

Capital 1,434,916 1,432,773 - % 1,428,066 - %surplus

Retained 785,940 774,970 1 % 762,480 3 %earnings

Treasury )stock, at (200,000 ) (200,000 ) - % (163,820 ) (22 %cost

Accumulatedother 32,753 32,682 - % 9,149 258 %comprehensivegain, net

Totalstockholders' 2,053,745 2,040,561 1 % 2,036,011 1 %equity

Totalliabilitiesand $ 17,106,664 $ 16,733,767 2 % $ 15,667,440 9 %stockholders'equity



Common stockshares - 150,000,000 150,000,000 150,000,000 authorized

Common stockshares - 123,264,864 123,260,760 125,756,543 outstanding

Treasury 12,661,581 12,661,581 9,945,547 stock shares

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share data)

Three Months Ended

Twelve Months Ended

12/31/2020

9/30/2020

% change

12/31/2019

% change

12/31/2020

12/31/2019

% change

Interest and fees on loans

$

132,117

$

134,430

(2

)%

$

152,795

(14

)%

$

554,967

$

627,673

(12

)%

Interest on securities

9,014

9,848

(8

)%

10,737

(16

)%

39,362

46,295

(15

)%

Interest on federal funds sold and other investments

598

942

(37

)%

2,241

(73

)%

4,549

10,818

(58

)%

Total interest income

141,729

145,220

(2

)%

165,773

(15

)%

598,878

684,786

(13

)%

Interest on deposits

16,934

22,871

(26

)%

45,428

(63

)%

110,369

190,158

(42

)%

Interest on other borrowings and convertible notes

4,039

4,712

(14

)%

6,837

(41

)%

21,011

28,033

(25

)%

Total interest expense

20,973

27,583

(24

)%

52,265

(60

)%

131,380

218,191

(40

)%

Net interest income before provision for credit losses

120,756

117,637

3

%

113,508

6

%

467,498

466,595

-

%

Provision for credit losses

27,500

22,000

25

%

1,000

2,650

%

95,000

7,300

1,201

%

Net interest income after provision for credit losses

93,256

95,637

(2

)%

112,508

(17

)%

372,498

459,295

(19

)%

Service fees on deposit accounts

2,991

2,736

9

%

4,510

(34

)%

12,443

17,933

(31

)%

International service fees

696

987

(29

)%

780

(11

)%

3,139

3,926

(20

)%

Loan servicing fees, net

566

772

(27

)%

660

(14

)%

2,809

2,316

21

%

Wire transfer fees

867

892

(3

)%

1,100

(21

)%

3,577

4,558

(22

)%

Net gains on sales of other loans

1,618

2,853

(43

)%

1,876

(14

)%

8,004

4,487

78

%

Net gains on sales of securities available for sale

-

7,531

(100

)%

-

-

%

7,531

282

2,571

%

Other income and fees

4,677

1,742

168

%

4,053

15

%

15,929

16,181

(2

)%

Total noninterest income

11,415

17,513

(35

)%

12,979

(12

)%

53,432

49,683

8

%

Salaries and employee benefits

40,911

40,659

1

%

39,841

3

%

162,922

161,174

1

%

Occupancy

7,200

7,264

(1

)%

7,516

(4

)%

28,917

30,735

(6

)%

Furniture and equipment

4,122

4,513

(9

)%

4,260

(3

)%

17,548

15,583

13

%

Advertising and marketing

1,695

1,601

6

%

2,462

(31

)%

6,284

9,146

(31

)%

Data processing and communications

2,235

2,204

1

%

2,416

(7

)%

9,344

10,780

(13

)%

Professional fees

1,847

1,513

22

%

5,948

(69

)%

8,170

22,528

(64

)%

FDIC assessment

1,166

1,167

-

%

772

51

%

5,544

3,882

43

%

Credit related expenses

2,001

1,793

12

%

1,717

17

%

6,817

4,975

37

%

OREO (income) expense, net

(86

)

1,770

N/A

(122

)

(30

)%

3,865

(934

)

N/A

FHLB prepayment fee

-

3,584

(100

)%

-

-

%

3,584

-

100

%

Branch restructuring costs

2,367

-

100

%

-

100

%

2,367

-

100

%

Other

7,605

7,338

4

%

5,619

35

%

28,277

24,759

14

%

Total noninterest expense

71,063

73,406

(3

)%

70,429

1

%

283,639

282,628

-

%

Income before income taxes

33,608

39,744

(15

)%

55,058

(39

)%

142,291

226,350

(37

)%

Income tax provision

5,289

9,254

(43

)%

12,049

(56

)%

30,776

55,310

(44

)%

Net income

$

28,319

$

30,490

(7

)%

$

43,009

(34

)%

$

111,515

$

171,040

(35

)%

Earnings per Common Share:

Basic

$

0.23

$

0.25

$

0.34

$

0.90

$

1.35

Diluted

$

0.23

$

0.25

$

0.34

$

0.90

$

1.35

Average Shares Outstanding:

Basic

123,264,172

123,251,336

126,410,924

123,501,401

126,598,564

Diluted

123,874,229

123,536,765

126,835,273

123,889,343

126,875,320

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share data)



Three Months Ended Twelve Months Ended

12/31/2020 9/30/2020 % 12/31/2019 % 12/31/2020 12/31/2019 % change change change



Interest and $ 132,117 $ 134,430 (2 ) $ 152,795 (14 ) $ 554,967 $ 627,673 (12 )fees on loans % % %

Interest on 9,014 9,848 (8 ) 10,737 (16 ) 39,362 46,295 (15 )securities % % %

Interest onfederal funds 598 942 (37 ) 2,241 (73 ) 4,549 10,818 (58 )sold and other % % %investments

Total interest 141,729 145,220 (2 ) 165,773 (15 ) 598,878 684,786 (13 )income % % %



Interest on 16,934 22,871 (26 ) 45,428 (63 ) 110,369 190,158 (42 )deposits % % %

Interest onother ) ) )borrowings and 4,039 4,712 (14 % 6,837 (41 % 21,011 28,033 (25 %convertiblenotes

Total interest 20,973 27,583 (24 ) 52,265 (60 ) 131,380 218,191 (40 )expense % % %



Net interestincome before 120,756 117,637 3 % 113,508 6 % 467,498 466,595 - %provision forcredit losses

Provision for 27,500 22,000 25 % 1,000 2,650 % 95,000 7,300 1,201 %credit losses

Net interestincome after 93,256 95,637 (2 ) 112,508 (17 ) 372,498 459,295 (19 )provision for % % %credit losses



Service fees ) )on deposit 2,991 2,736 9 % 4,510 (34 % 12,443 17,933 (31 %accounts

International 696 987 (29 ) 780 (11 ) 3,139 3,926 (20 )service fees % % %

Loan servicing 566 772 (27 ) 660 (14 ) 2,809 2,316 21 %fees, net % %

Wire transfer 867 892 (3 ) 1,100 (21 ) 3,577 4,558 (22 )fees % % %

Net gains on ) )sales of other 1,618 2,853 (43 % 1,876 (14 % 8,004 4,487 78 %loans

Net gains onsales of )securities - 7,531 (100 % - - % 7,531 282 2,571 %available forsale

Other income 4,677 1,742 168 % 4,053 15 % 15,929 16,181 (2 )and fees %

Total ) )noninterest 11,415 17,513 (35 % 12,979 (12 % 53,432 49,683 8 %income



Salaries andemployee 40,911 40,659 1 % 39,841 3 % 162,922 161,174 1 %benefits

Occupancy 7,200 7,264 (1 ) 7,516 (4 ) 28,917 30,735 (6 ) % % %

Furniture and 4,122 4,513 (9 ) 4,260 (3 ) 17,548 15,583 13 %equipment % %

Advertising 1,695 1,601 6 % 2,462 (31 ) 6,284 9,146 (31 )and marketing % %

Data ) )processing and 2,235 2,204 1 % 2,416 (7 % 9,344 10,780 (13 %communications

Professional 1,847 1,513 22 % 5,948 (69 ) 8,170 22,528 (64 )fees % %

FDIC 1,166 1,167 - % 772 51 % 5,544 3,882 43 %assessment

Credit related 2,001 1,793 12 % 1,717 17 % 6,817 4,975 37 %expenses

OREO (income) (86 ) 1,770 N/A (122 ) (30 ) 3,865 (934 ) N/A expense, net %

FHLB - 3,584 (100 ) - - % 3,584 - 100 %prepayment fee %

Branchrestructuring 2,367 - 100 % - 100 % 2,367 - 100 %costs

Other 7,605 7,338 4 % 5,619 35 % 28,277 24,759 14 %

Total )noninterest 71,063 73,406 (3 % 70,429 1 % 283,639 282,628 - %expense

Income before 33,608 39,744 (15 ) 55,058 (39 ) 142,291 226,350 (37 )income taxes % % %

Income tax 5,289 9,254 (43 ) 12,049 (56 ) 30,776 55,310 (44 )provision % % %

Net income $ 28,319 $ 30,490 (7 ) $ 43,009 (34 ) $ 111,515 $ 171,040 (35 ) % % %



Earnings per Common Share:

Basic $ 0.23 $ 0.25 $ 0.34 $ 0.90 $ 1.35

Diluted $ 0.23 $ 0.25 $ 0.34 $ 0.90 $ 1.35



Average Shares Outstanding:

Basic 123,264,172 123,251,336 126,410,924 123,501,401 126,598,564

Diluted 123,874,229 123,536,765 126,835,273 123,889,343 126,875,320

Hope Bancorp, Inc.

Selected Financial Data

Unaudited

At or for the Three Months Ended(Annualized)

At or for the Twelve Months Ended

Profitability measures:

12/31/2020

9/30/2020

12/31/2019

12/31/2020

12/31/2019

ROA

0.67

%

0.72

%

1.13

%

0.68

%

1.12

%

ROE

5.54

%

5.98

%

8.46

%

5.49

%

8.63

%

ROTCE (1)

7.21

%

7.80

%

11.04

%

7.16

%

11.37

%

Net interest margin

3.02

%

2.91

%

3.16

%

3.00

%

3.27

%

Efficiency ratio

53.77

%

54.31

%

55.68

%

54.45

%

54.74

%

Noninterest expense / average assets

1.69

%

1.73

%

1.85

%

1.72

%

1.86

%

1 Average 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.

Three Months Ended

Twelve Months Ended

Pre-tax acquisition accounting adjustments

12/31/2020

9/30/2020

12/31/2019

12/31/2020

12/31/2019

Accretion on acquired non-impaired loans

$

452

$

747

$

1,945

$

2,916

$

7,956

Accretion on acquired credit deteriorated/purchased credit impaired loans

3,064

4,584

5,958

20,143

23,874

Amortization of premium on low income housing tax credits

(71

)

(71

)

(76

)

(283

)

(303

)

Amortization of premium on acquired FHLB borrowings

-

-

-

-

1,280

Accretion of discount on acquired subordinated debt

(289

)

(287

)

(281

)

(1,143

)

(1,107

)

Amortization of core deposit intangibles

(531

)

(531

)

(557

)

(2,125

)

(2,228

)

Total acquisition accounting adjustments

$

2,625

$

4,442

$

6,989

$

19,508

$

29,472

Hope Bancorp, Inc.

Selected Financial Data

Unaudited



At or for the Three Months Ended At or for the Twelve (Annualized) Months Ended

Profitability 12/31/ 9/30/2020 12/31/ 12/31/2020 12/31/2019measures: 2020 2019

ROA 0.67 % 0.72 % 1.13 % 0.68 % 1.12 %

ROE 5.54 % 5.98 % 8.46 % 5.49 % 8.63 %

ROTCE ^(1) 7.21 % 7.80 % 11.04 % 7.16 % 11.37 %

Net interest margin 3.02 % 2.91 % 3.16 % 3.00 % 3.27 %

Efficiency ratio 53.77 % 54.31 % 55.68 % 54.45 % 54.74 %

Noninterest expense 1.69 % 1.73 % 1.85 % 1.72 % 1.86 %/ average assets



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





Three Months Ended Twelve Months Ended

Pre-tax acquisition 12/31/ 12/31/accounting 2020 9/30/2020 2019 12/31/2020 12/31/2019adjustments

Accretion onacquired $ 452 $ 747 $ 1,945 $ 2,916 $ 7,956 non-impaired loans

Accretion onacquired creditdeteriorated/ 3,064 4,584 5,958 20,143 23,874 purchased creditimpaired loans

Amortization ofpremium on low (71 ) (71 ) (76 ) (283 ) (303 )income housing taxcredits

Amortization ofpremium on acquired - - - - 1,280 FHLB borrowings

Accretion ofdiscount on (289 ) (287 ) (281 ) (1,143 ) (1,107 )acquiredsubordinated debt

Amortization ofcore deposit (531 ) (531 ) (557 ) (2,125 ) (2,228 )intangibles

Total acquisitionaccounting $ 2,625 $ 4,442 $ 6,989 $ 19,508 $ 29,472 adjustments



Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

12/31/2020

9/30/2020

12/31/2019

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

$

13,046,443

$

132,117

4.03

%

$

12,728,558

$

134,430

4.20

%

$

12,036,477

$

152,795

5.04

%

Securities available for sale

2,123,025

9,014

1.69

%

2,010,907

9,848

1.95

%

1,755,887

10,737

2.43

%

FHLB stock and other investments

749,281

598

0.32

%

1,342,641

942

0.28

%

463,615

2,241

1.92

%

Total interest earning assets

$

15,918,749

$

141,729

3.54

%

$

16,082,106

$

145,220

3.59

%

$

14,255,979

$

165,773

4.61

%

INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest bearing

$

4,910,649

$

5,541

0.45

%

$

4,895,101

$

6,546

0.53

%

$

3,682,300

$

14,924

1.61

%

Savings

305,341

898

1.17

%

302,882

907

1.19

%

265,008

748

1.12

%

Time deposits

4,240,500

10,495

0.98

%

4,703,640

15,418

1.30

%

5,148,092

29,756

2.29

%

Total interest bearing deposits

9,456,490

16,934

0.71

%

9,901,623

22,871

0.92

%

9,095,400

45,428

1.98

%

FHLB advances

204,900

657

1.28

%

353,587

1,323

1.49

%

608,052

2,921

1.91

%

Convertible notes, net

203,807

2,383

4.58

%

202,470

2,370

4.58

%

198,669

2,334

4.60

%

Subordinated debentures

100,118

999

3.90

%

99,819

1,019

3.99

%

98,972

1,582

6.25

%

Total interest bearing liabilities

9,965,315

$

20,973

0.84

%

10,557,499

$

27,583

1.04

%

10,001,093

$

52,265

2.07

%

Noninterest bearing demand deposits

4,637,584

4,239,108

2,999,048

Total funding liabilities/cost of funds

$

14,602,899

0.57

%

$

14,796,607

0.74

%

$

13,000,141

1.60

%

Net interest income/net interest spread

$

120,756

2.70

%

$

117,637

2.55

%

$

113,508

2.54

%

Net interest margin

3.02

%

2.91

%

3.16

%

Cost of deposits:

Noninterest bearing demand deposits

$

4,637,584

$

-

-

%

$

4,239,108

$

-

-

%

$

2,999,048

$

-

-

%

Interest bearing deposits

9,456,490

16,934

0.71

%

9,901,623

22,871

0.92

%

9,095,400

45,428

1.98

%

Total deposits

$

14,094,074

$

16,934

0.48

%

$

14,140,731

$

22,871

0.64

%

$

12,094,448

$

45,428

1.49

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



Three Months Ended

12/31/2020 9/30/2020 12/31/2019

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, includingloans held for $ 13,046,443 $ 132,117 4.03 % $ 12,728,558 $ 134,430 4.20 % $ 12,036,477 $ 152,795 5.04 %sale

Securitiesavailable for 2,123,025 9,014 1.69 % 2,010,907 9,848 1.95 % 1,755,887 10,737 2.43 %sale

FHLB stock andother 749,281 598 0.32 % 1,342,641 942 0.28 % 463,615 2,241 1.92 %investments

Total interest $ 15,918,749 $ 141,729 3.54 % $ 16,082,106 $ 145,220 3.59 % $ 14,255,979 $ 165,773 4.61 %earning assets



INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest $ 4,910,649 $ 5,541 0.45 % $ 4,895,101 $ 6,546 0.53 % $ 3,682,300 $ 14,924 1.61 %bearing

Savings 305,341 898 1.17 % 302,882 907 1.19 % 265,008 748 1.12 %

Time deposits 4,240,500 10,495 0.98 % 4,703,640 15,418 1.30 % 5,148,092 29,756 2.29 %

Total interest 9,456,490 16,934 0.71 % 9,901,623 22,871 0.92 % 9,095,400 45,428 1.98 %bearing deposits

FHLB advances 204,900 657 1.28 % 353,587 1,323 1.49 % 608,052 2,921 1.91 %

Convertible 203,807 2,383 4.58 % 202,470 2,370 4.58 % 198,669 2,334 4.60 %notes, net

Subordinated 100,118 999 3.90 % 99,819 1,019 3.99 % 98,972 1,582 6.25 %debentures

Total interestbearing 9,965,315 $ 20,973 0.84 % 10,557,499 $ 27,583 1.04 % 10,001,093 $ 52,265 2.07 %liabilities

Noninterestbearing demand 4,637,584 4,239,108 2,999,048 deposits

Total fundingliabilities/cost $ 14,602,899 0.57 % $ 14,796,607 0.74 % $ 13,000,141 1.60 %of funds

Net interestincome/net $ 120,756 2.70 % $ 117,637 2.55 % $ 113,508 2.54 %interest spread

Net interest 3.02 % 2.91 % 3.16 %margin



Cost of deposits:

Noninterestbearing demand $ 4,637,584 $ - - % $ 4,239,108 $ - - % $ 2,999,048 $ - - %deposits

Interest bearing 9,456,490 16,934 0.71 % 9,901,623 22,871 0.92 % 9,095,400 45,428 1.98 %deposits

Total deposits $ 14,094,074 $ 16,934 0.48 % $ 14,140,731 $ 22,871 0.64 % $ 12,094,448 $ 45,428 1.49 %

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Twelve Months Ended

12/31/2020

12/31/2019

Interest

Interest

Average

Income/

Average

Average

Income/

Average

Balance

Expense

Yield/Cost

Balance

Expense

Yield/Cost

INTEREST EARNING ASSETS:

Loans, including loans held for sale

$

12,698,523

$

554,967

4.37

%

$

11,998,675

$

627,673

5.23

%

Securities available for sale

1,899,948

39,362

2.07

%

1,796,412

46,295

2.58

%

FHLB stock and other investments

982,419

4,549

0.46

%

453,452

10,818

2.39

%

Total interest earning assets

$

15,580,890

$

598,878

3.84

%

$

14,248,539

$

684,786

4.81

%

INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest bearing

$

4,729,438

$

34,529

0.73

%

$

3,319,556

$

57,731

1.74

%

Savings

291,655

3,475

1.19

%

241,968

2,596

1.07

%

Time deposits

4,698,503

72,365

1.54

%

5,556,983

129,831

2.34

%

Total interest bearing deposits

9,719,596

110,369

1.14

%

9,118,507

190,158

2.09

%

FHLB advances

435,836

6,865

1.58

%

688,652

12,031

1.75

%

Convertible notes, net

201,859

9,457

4.61

%

196,835

9,264

4.64

%

Subordinated debentures

99,682

4,689

4.63

%

98,551

6,738

6.74

%

Total interest bearing liabilities

10,456,973

$

131,380

1.26

%

10,102,545

$

218,191

2.16

%

Noninterest bearing demand deposits

3,840,935

2,948,212

Total funding liabilities/cost of funds

$

14,297,908

0.92

%

$

13,050,757

1.67

%

Net interest income/net interest spread

$

467,498

2.58

%

$

466,595

2.65

%

Net interest margin

3.00

%

3.27

%

Cost of deposits:

Noninterest bearing demand deposits

$

3,840,935

$

-

-

%

$

2,948,212

$

-

-

%

Interest bearing deposits

9,719,596

110,369

1.14

%

9,118,507

190,158

2.09

%

Total deposits

$

13,560,531

$

110,369

0.81

%

$

12,066,719

$

190,158

1.58

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



Twelve Months Ended

12/31/2020 12/31/2019

Interest Interest

Average Income/ Average Average Income/ Average

Balance Expense Yield/ Balance Expense Yield/ Cost Cost

INTERESTEARNING ASSETS:

Loans,including $ 12,698,523 $ 554,967 4.37 % $ 11,998,675 $ 627,673 5.23 %loans heldfor sale

Securitiesavailable 1,899,948 39,362 2.07 % 1,796,412 46,295 2.58 %for sale

FHLB stockand other 982,419 4,549 0.46 % 453,452 10,818 2.39 %investments

Totalinterest $ 15,580,890 $ 598,878 3.84 % $ 14,248,539 $ 684,786 4.81 %earningassets



INTERESTBEARING LIABILITIES:

Deposits:

Demand,interest $ 4,729,438 $ 34,529 0.73 % $ 3,319,556 $ 57,731 1.74 %bearing

Savings 291,655 3,475 1.19 % 241,968 2,596 1.07 %

Time 4,698,503 72,365 1.54 % 5,556,983 129,831 2.34 %deposits

Totalinterest 9,719,596 110,369 1.14 % 9,118,507 190,158 2.09 %bearingdeposits

FHLB 435,836 6,865 1.58 % 688,652 12,031 1.75 %advances

Convertible 201,859 9,457 4.61 % 196,835 9,264 4.64 %notes, net

Subordinated 99,682 4,689 4.63 % 98,551 6,738 6.74 %debentures

Totalinterest 10,456,973 $ 131,380 1.26 % 10,102,545 $ 218,191 2.16 %bearingliabilities

Noninterestbearing 3,840,935 2,948,212 demanddeposits

Totalfundingliabilities/ $ 14,297,908 0.92 % $ 13,050,757 1.67 %cost offunds

Net interestincome/net $ 467,498 2.58 % $ 466,595 2.65 %interestspread

Net interest 3.00 % 3.27 %margin



Cost of deposits:

Noninterestbearing $ 3,840,935 $ - - % $ 2,948,212 $ - - %demanddeposits

Interestbearing 9,719,596 110,369 1.14 % 9,118,507 190,158 2.09 %deposits

Total $ 13,560,531 $ 110,369 0.81 % $ 12,066,719 $ 190,158 1.58 %deposits

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

Twelve Months Ended

AVERAGE BALANCES:

12/31/2020

9/30/2020

% change

12/31/2019

% change

12/31/2020

12/31/2019

% change

Loans receivable, including loans held for sale

$

13,046,443

$

12,728,558

2

%

$

12,036,477

8

%

$

12,698,523

$

11,998,675

6

%

Investments

2,872,306

3,353,548

(14

)%

2,219,502

29

%

2,882,367

2,249,864

28

%

Interest earning assets

15,918,749

16,082,106

(1

)%

14,255,979

12

%

15,580,890

14,248,539

9

%

Total assets

16,824,700

17,020,795

(1

)%

15,228,488

10

%

16,515,102

15,214,412

9

%

Interest bearing deposits

9,456,490

9,901,623

(4

)%

9,095,400

4

%

9,719,596

9,118,507

7

%

Interest bearing liabilities

9,965,315

10,557,499

(6

)%

10,001,093

-

%

10,456,973

10,102,545

4

%

Noninterest bearing demand deposits

4,637,584

4,239,108

9

%

2,999,048

55

%

3,840,935

2,948,212

30

%

Stockholders' equity

2,045,959

2,039,555

-

%

2,034,231

1

%

2,032,570

1,981,811

3

%

Net interest earning assets

5,953,434

5,524,607

8

%

4,254,886

40

%

5,123,917

4,145,994

24

%

LOAN PORTFOLIO COMPOSITION:

12/31/2020

9/30/2020

% change

12/31/2019

% change

Commercial loans

$

4,157,787

$

3,700,020

12

%

$

2,719,818

53

%

Real estate loans

8,772,134

8,713,536

1

%

8,666,901

1

%

Consumer and other loans

633,292

706,669

(10

)%

889,288

(29

)%

Loans, net of deferred loan fees and costs

13,563,213

13,120,225

3

%

12,276,007

10

%

Allowance for credit losses

(206,741

)

(179,849

)

(15

)%

(94,144

)

(120

)%

Loans receivable, net

$

13,356,472

$

12,940,376

3

%

$

12,181,863

10

%

REAL ESTATE LOANS BY PROPERTY TYPE:

12/31/2020

9/30/2020

% change

12/31/2019

% change

Retail buildings

$

2,293,396

$

2,311,516

(1

)%

$

2,298,872

-

%

Hotels/motels

1,634,287

1,675,960

(2

)%

1,709,189

(4

)%

Gas stations/car washes

892,110

824,378

8

%

844,081

6

%

Mixed-use facilities

750,867

754,096

-

%

785,882

(4

)%

Warehouses

1,091,389

1,022,657

7

%

1,030,876

6

%

Multifamily

518,498

518,295

-

%

465,397

11

%

Other

1,591,587

1,606,634

(1

)%

1,532,604

4

%

Total

$

8,772,134

$

8,713,536

1

%

$

8,666,901

1

%

DEPOSIT COMPOSITION:

12/31/2020

9/30/2020

% change

12/31/2019

% change

Noninterest bearing demand deposits

$

4,814,254

$

4,488,529

7

%

$

3,108,687

55

%

Money market and other

5,232,413

4,763,893

10

%

3,985,556

31

%

Saving deposits

300,770

308,943

(3

)%

274,151

10

%

Time deposits

3,986,475

4,446,991

(10

)%

5,158,970

(23

)%

Total deposit balances

$

14,333,912

$

14,008,356

2

%

$

12,527,364

14

%

DEPOSIT COMPOSITION (%):

12/31/2020

9/30/2020

12/31/2019

Noninterest bearing demand deposits

33.6

%

32.1

%

24.8

%

Money market and other

36.5

%

34.0

%

31.8

%

Saving deposits

2.1

%

2.2

%

2.2

%

Time deposits

27.8

%

31.7

%

41.2

%

Total deposit balances

100.0

%

100.0

%

100.0

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



Three Months Ended Twelve Months Ended

AVERAGE 12/31/2020 9/30/2020 % 12/31/2019 % 12/31/2020 12/31/2019 %BALANCES: change change change

Loansreceivable,including $ 13,046,443 $ 12,728,558 2 % $ 12,036,477 8 % $ 12,698,523 $ 11,998,675 6 %loans heldfor sale

Investments 2,872,306 3,353,548 (14 )% 2,219,502 29 % 2,882,367 2,249,864 28 %

Interestearning 15,918,749 16,082,106 (1 )% 14,255,979 12 % 15,580,890 14,248,539 9 %assets

Total assets 16,824,700 17,020,795 (1 )% 15,228,488 10 % 16,515,102 15,214,412 9 %



Interestbearing 9,456,490 9,901,623 (4 )% 9,095,400 4 % 9,719,596 9,118,507 7 %deposits

Interestbearing 9,965,315 10,557,499 (6 )% 10,001,093 - % 10,456,973 10,102,545 4 %liabilities

Noninterestbearing 4,637,584 4,239,108 9 % 2,999,048 55 % 3,840,935 2,948,212 30 %demanddeposits

Stockholders' 2,045,959 2,039,555 - % 2,034,231 1 % 2,032,570 1,981,811 3 %equity

Net interestearning 5,953,434 5,524,607 8 % 4,254,886 40 % 5,123,917 4,145,994 24 %assets



LOAN % %PORTFOLIO 12/31/2020 9/30/2020 change 12/31/2019 change COMPOSITION:

Commercial $ 4,157,787 $ 3,700,020 12 % $ 2,719,818 53 % loans

Real estate 8,772,134 8,713,536 1 % 8,666,901 1 % loans

Consumer and 633,292 706,669 (10 )% 889,288 (29 ) other loans %

Loans, net ofdeferred loan 13,563,213 13,120,225 3 % 12,276,007 10 % fees andcosts

Allowance for (206,741 ) (179,849 ) (15 )% (94,144 ) (120 ) credit losses %

Loansreceivable, $ 13,356,472 $ 12,940,376 3 % $ 12,181,863 10 % net



REAL ESTATELOANS BY 12/31/2020 9/30/2020 % 12/31/2019 % PROPERTY change changeTYPE:

Retail $ 2,293,396 $ 2,311,516 (1 )% $ 2,298,872 - % buildings

Hotels/motels 1,634,287 1,675,960 (2 )% 1,709,189 (4 ) %

Gas stations/ 892,110 824,378 8 % 844,081 6 % car washes

Mixed-use 750,867 754,096 - % 785,882 (4 ) facilities %

Warehouses 1,091,389 1,022,657 7 % 1,030,876 6 %

Multifamily 518,498 518,295 - % 465,397 11 %

Other 1,591,587 1,606,634 (1 )% 1,532,604 4 %

Total $ 8,772,134 $ 8,713,536 1 % $ 8,666,901 1 %



DEPOSIT 12/31/2020 9/30/2020 % 12/31/2019 % COMPOSITION: change change

Noninterestbearing $ 4,814,254 $ 4,488,529 7 % $ 3,108,687 55 % demanddeposits

Money market 5,232,413 4,763,893 10 % 3,985,556 31 % and other

Saving 300,770 308,943 (3 )% 274,151 10 % deposits

Time deposits 3,986,475 4,446,991 (10 )% 5,158,970 (23 ) %

Total deposit $ 14,333,912 $ 14,008,356 2 % $ 12,527,364 14 % balances



DEPOSITCOMPOSITION 12/31/2020 9/30/2020 12/31/2019 (%):

Noninterestbearing 33.6 % 32.1 % 24.8 % demanddeposits

Money market 36.5 % 34.0 % 31.8 % and other

Saving 2.1 % 2.2 % 2.2 % deposits

Time deposits 27.8 % 31.7 % 41.2 %

Total deposit 100.0 % 100.0 % 100.0 % balances

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except per share data)

CAPITAL RATIOS:

12/31/2020

9/30/2020

12/31/2019

Total stockholders' equity

$

2,053,745

$

2,040,561

$

2,036,011

Common equity tier 1 ratio

10.94

%

11.36

%

11.76

%

Tier 1 risk-based capital ratio

11.64

%

12.09

%

12.51

%

Total risk-based capital ratio

12.87

%

13.19

%

13.23

%

Tier 1 leverage ratio

10.22

%

10.02

%

11.22

%

Total risk weighted assets

$

14,341,456

$

13,691,823

$

13,208,299

Book value per common share

$

16.66

$

16.55

$

16.19

Tangible common equity to tangible assets 1

9.50

%

9.63

%

10.27

%

Tangible common equity per share 1

$

12.81

$

12.70

$

12.40

1 Tangible 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.

Three Months Ended

Twelve Months Ended

ALLOWANCE FOR CREDIT LOSSES CHANGES:

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

12/31/2020

12/31/2019

Balance at beginning of period

$

179,849

$

161,771

$

144,923

$

94,144

$

93,882

$

94,144

$

92,557

CECL day 1 adoption impact

-

-

-

26,200

-

26,200

-

Provision for credit losses

27,500

22,000

17,500

28,000

1,000

95,000

7,300

Recoveries

2,207

2,428

252

2,536

939

7,423

3,736

Charge offs

(2,815)

(6,350)

(904)

(5,957)

(1,677)

(16,026)

(8,109)

PCI allowance adjustment

-

-

-

-

-

-

(1,340)

Balance at end of period

$

206,741

$

179,849

$

161,771

$

144,923

$

94,144

$

206,741

$

94,144

Net charge offs/average loans receivable (annualized)

0.02

%

0.12

%

0.02

%

0.11

%

0.02

%

0.07

%

0.04

%

Three Months Ended

Twelve Months Ended

NET CHARGE OFFS (RECOVERIES) BY TYPE:

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

12/31/2020

12/31/2019

Real estate loans

$

(726)

$

5,154

$

148

$

2,230

$

203

$

6,806

$

(301)

Commercial loans

1,167

(1,451)

240

676

245

632

3,490

Consumer loans

167

219

264

515

290

1,165

1,184

Total net charge offs

$

608

$

3,922

$

652

$

3,421

$

738

$

8,603

$

4,373

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except per share data)



CAPITAL 12/31/2020 9/30/2020 12/31/2019 RATIOS:

Totalstockholders' $ 2,053,745 $ 2,040,561 $ 2,036,011 equity

Common equity 10.94 % 11.36 % 11.76 % tier 1 ratio

Tier 1risk-based 11.64 % 12.09 % 12.51 % capital ratio

Totalrisk-based 12.87 % 13.19 % 13.23 % capital ratio

Tier 1 10.22 % 10.02 % 11.22 % leverage ratio

Total riskweighted $ 14,341,456 $ 13,691,823 $ 13,208,299 assets

Book value per $ 16.66 $ 16.55 $ 16.19 common share

Tangiblecommon equity 9.50 % 9.63 % 10.27 % to tangibleassets ^1

Tangiblecommon equity $ 12.81 $ 12.70 $ 12.40 per share ^1



^1 Tangible common equity to tangible assets is a non-GAAPfinancial measure that represents common equity less goodwilland core deposit intangible assets, net divided by total assetsless goodwill and core deposit intangible assets, net. Management reviews tangible common equity to tangible assets inevaluating the Company's capital levels and has included thisratio in response to market participant interest in tangiblecommon equity as a measure of capital.



Three Months Ended Twelve Months Ended

ALLOWANCE FORCREDIT LOSSES 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019CHANGES:

Balance atbeginning of $ 179,849 $ 161,771 $ 144,923 $ 94,144 $ 93,882 $ 94,144 $ 92,557 period

CECL day 1adoption - - - 26,200 - 26,200 - impact

Provision for 27,500 22,000 17,500 28,000 1,000 95,000 7,300 credit losses

Recoveries 2,207 2,428 252 2,536 939 7,423 3,736

Charge offs (2,815) (6,350) (904) (5,957) (1,677) (16,026) (8,109)

PCI allowance - - - - - - (1,340) adjustment

Balance at end $ 206,741 $ 179,849 $ 161,771 $ 144,923 $ 94,144 $ 206,741 $ 94,144 of period

Net chargeoffs/averageloans 0.02 % 0.12 % 0.02 % 0.11 % 0.02 % 0.07 % 0.04 %receivable(annualized)



Three Months Ended Twelve Months Ended

NET CHARGEOFFS 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 12/31/2020 12/31/2019(RECOVERIES)BY TYPE:

Real estate $ (726) $ 5,154 $ 148 $ 2,230 $ 203 $ 6,806 $ (301) loans

Commercial 1,167 (1,451) 240 676 245 632 3,490 loans

Consumer loans 167 219 264 515 290 1,165 1,184

Total net $ 608 $ 3,922 $ 652 $ 3,421 $ 738 $ 8,603 $ 4,373 charge offs



Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

NONPERFORMING ASSETS:12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

Loans on nonaccrual status 1

$

85,238

$

69,205

$

82,137

$

72,639

$

54,785

Delinquent loans 90 days or more on accrual status

614

1,537

430

387

7,547

Accruing troubled debt restructured loans

37,354

35,429

44,026

43,789

35,709

Total nonperforming loans

123,206

106,171

126,593

116,815

98,041

Other real estate owned

20,121

18,410

20,983

23,039

24,091

Total nonperforming assets

$

143,327

$

124,581

$

147,576

$

139,854

$

122,132

Nonperforming assets/total assets

0.84

%

0.74

%

0.86

%

0.87

%

0.78

%

Nonperforming assets/loans receivable & OREO

1.06

%

0.95

%

1.14

%

1.11

%

0.99

%

Nonperforming assets/total capital

6.98

%

6.11

%

7.27

%

6.93

%

6.00

%

Nonperforming loans/loans receivable

0.91

%

0.81

%

0.98

%

0.93

%

0.80

%

Nonaccrual loans/loans receivable

0.63

%

0.53

%

0.64

%

0.58

%

0.45

%

Allowance for credit losses/loans receivable

1.52

%

1.37

%

1.26

%

1.15

%

0.77

%

Allowance for credit losses/nonaccrual loans

242.55

%

259.88

%

196.95

%

199.51

%

171.84

%

Allowance for credit losses/nonperforming loans

167.80

%

169.40

%

127.79

%

124.06

%

96.03

%

Allowance for credit losses/nonperforming assets

144.24

%

144.36

%

109.62

%

103.62

%

77.08

%

1 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $26.5 million, $26.2 million, $30.3 million, $28.8 million, and $28.1 million, at December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, respectively.

NONACCRUAL LOANS BY TYPE:

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

Real estate loans

$

67,450

$

51,739

$

64,060

$

56,787

$

40,935

Commercial loans

13,911

13,022

12,079

12,747

10,893

Consumer loans

3,877

4,444

5,998

3,105

2,957

Total nonaccrual loans

$

85,238

$

69,205

$

82,137

$

72,639

$

54,785

BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

Retail buildings

$

5,408

$

5,451

$

5,526

$

5,014

$

4,215

Gas stations/car washes

219

224

1,789

1,675

-

Mixed-use facilities

3,521

4,323

3,583

3,157

3,175

Warehouses

7,296

7,320

13,433

13,381

10,381

Other 2

20,910

18,111

19,695

20,562

17,938

Total

$

37,354

$

35,429

$

44,026

$

43,789

$

35,709

2 Includes commercial business, consumer and other loans

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



NONPERFORMING 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019ASSETS:Loans onnonaccrual $ 85,238 $ 69,205 $ 82,137 $ 72,639 $ 54,785 status ^1

Delinquentloans 90 daysor more on 614 1,537 430 387 7,547 accrualstatus

Accruingtroubled debt 37,354 35,429 44,026 43,789 35,709 restructuredloans

Totalnonperforming 123,206 106,171 126,593 116,815 98,041 loans

Other real 20,121 18,410 20,983 23,039 24,091 estate owned

Totalnonperforming $ 143,327 $ 124,581 $ 147,576 $ 139,854 $ 122,132 assets

Nonperformingassets/total 0.84 % 0.74 % 0.86 % 0.87 % 0.78 %assets

Nonperformingassets/loans 1.06 % 0.95 % 1.14 % 1.11 % 0.99 %receivable &OREO

Nonperformingassets/total 6.98 % 6.11 % 7.27 % 6.93 % 6.00 %capital

Nonperformingloans/loans 0.91 % 0.81 % 0.98 % 0.93 % 0.80 %receivable

Nonaccrualloans/loans 0.63 % 0.53 % 0.64 % 0.58 % 0.45 %receivable

Allowance forcredit losses 1.52 % 1.37 % 1.26 % 1.15 % 0.77 %/loansreceivable

Allowance forcredit losses 242.55 % 259.88 % 196.95 % 199.51 % 171.84 %/nonaccrualloans

Allowance forcredit losses/ 167.80 % 169.40 % 127.79 % 124.06 % 96.03 %nonperformingloans

Allowance forcredit losses/ 144.24 % 144.36 % 109.62 % 103.62 % 77.08 %nonperformingassets



^1 Excludes delinquent SBA loans that are guaranteed and currently inliquidation totaling $26.5 million, $26.2 million, $30.3 million, $28.8million, and $28.1 million, at December 31, 2020, September 30, 2020, June 30,2020, March 31, 2020, and December 31, 2019, respectively.



NONACCRUALLOANS BY 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019TYPE:

Real estate $ 67,450 $ 51,739 $ 64,060 $ 56,787 $ 40,935 loans

Commercial 13,911 13,022 12,079 12,747 10,893 loans

Consumer 3,877 4,444 5,998 3,105 2,957 loans

Totalnonaccrual $ 85,238 $ 69,205 $ 82,137 $ 72,639 $ 54,785 loans



BREAKDOWN OFACCRUINGTROUBLED DEBT 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019RESTRUCTUREDLOANS:

Retail $ 5,408 $ 5,451 $ 5,526 $ 5,014 $ 4,215 buildings

Gas stations/ 219 224 1,789 1,675 - car washes

Mixed-use 3,521 4,323 3,583 3,157 3,175 facilities

Warehouses 7,296 7,320 13,433 13,381 10,381

Other ^2 20,910 18,111 19,695 20,562 17,938

Total $ 37,354 $ 35,429 $ 44,026 $ 43,789 $ 35,709



^2 Includes commercial business, consumer and other loans

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

30 - 59 days

$

11,347

$

5,962

$

18,857

$

37,866

$

14,433

60 - 89 days

16,826

58,065

29,975

2,605

4,712

Total

$

28,173

$

64,027

$

48,832

$

40,471

$

19,145

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE:

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

Real estate loans

$

15,689

$

60,510

$

27,245

$

23,753

$

7,689

Commercial loans

3,393

624

5,987

4,583

692

Consumer loans

9,091

2,893

15,600

12,135

10,764

Total

$

28,173

$

64,027

$

48,832

$

40,471

$

19,145

CRITICIZED LOANS:

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

Special mention

$

184,941

$

153,388

$

127,149

$

122,279

$

141,452

Substandard

366,556

311,902

299,357

278,771

259,278

Doubtful/Loss

1

6,640

11

12

13

Total criticized loans

$

551,498

$

471,930

$

426,517

$

401,062

$

400,743

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



ACCRUINGDELINQUENTLOANS 30-89 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019DAYS PASTDUE:

30 - 59 $ 11,347 $ 5,962 $ 18,857 $ 37,866 $ 14,433 days

60 - 89 16,826 58,065 29,975 2,605 4,712 days

Total $ 28,173 $ 64,027 $ 48,832 $ 40,471 $ 19,145





ACCRUINGDELINQUENTLOANS 30-89 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019DAYS PASTDUE BYTYPE:

Real estate $ 15,689 $ 60,510 $ 27,245 $ 23,753 $ 7,689 loans

Commercial 3,393 624 5,987 4,583 692 loans

Consumer 9,091 2,893 15,600 12,135 10,764 loans

Total $ 28,173 $ 64,027 $ 48,832 $ 40,471 $ 19,145





CRITICIZED 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019LOANS:

Special $ 184,941 $ 153,388 $ 127,149 $ 122,279 $ 141,452 mention

Substandard 366,556 311,902 299,357 278,771 259,278

Doubtful/ 1 6,640 11 12 13 Loss

Totalcriticized $ 551,498 $ 471,930 $ 426,517 $ 401,062 $ 400,743 loans

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

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. A reconciliation of the GAAP to non-GAAP financial measures utilized by management is provided below.

Three Months Ended

Twelve Months Ended

12/31/2020

9/30/2020

12/31/2019

12/31/2020

12/31/2019

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Average stockholders' equity

$

2,045,959

$

2,039,555

$

2,034,231

$

2,032,570

$

1,981,811

Less: Goodwill and core deposit intangible assets, net

(474,467

)

(475,010

)

(476,596

)

(475,263

)

(477,444

)

Average tangible common equity

$

1,571,492

$

1,564,545

$

1,557,635

$

1,557,307

$

1,504,367

Net Income

$

28,319

$

30,490

$

43,009

$

111,515

$

171,040

Return on average tangible common equity (annualized)

7.21

%

7.80

%

11.04

%

7.16

%

11.37

%

TANGIBLE COMMON EQUITY

12/31/2020

9/30/2020

12/31/2019

Total stockholders' equity

$

2,053,745

$

2,040,561

$

2,036,011

Less: Goodwill and core deposit intangible assets, net

(474,158

)

(474,689

)

(476,283

)

Tangible common equity

$

1,579,587

$

1,565,872

$

1,559,728

Total assets

$

17,106,664

$

16,733,767

$

15,667,440

Less: Goodwill and core deposit intangible assets, net

(474,158

)

(474,689

)

(476,283

)

Tangible assets

$

16,632,506

$

16,259,078

$

15,191,157

Common shares outstanding

123,264,864

123,260,760

125,756,543

Tangible common equity to tangible assets

9.50

%

9.63

%

10.27

%

Tangible common equity per share

$

12.81

$

12.70

$

12.40

Three Months Ended

Twelve Months Ended

12/31/2020

9/30/2020

12/31/2019

12/31/2020

12/31/2019

PRE-TAX PRE-PROVISION INCOME

Net income

$

28,319

$

30,490

$

43,009

$

111,515

$

171,040

Add back - tax provision

5,289

9,254

12,049

30,776

55,310

Add back - provision for credit losses

27,500

22,000

1,000

95,000

7,300

Pre-tax pre-provision income

$

61,108

$

61,744

$

56,058

$

237,291

$

233,650

View source version on businesswire.com: https://www.businesswire.com/news/home/20210126006095/en/

CONTACT: Alex Ko EVP & Chief Financial Officer 213-427-6560 alex.ko@bankofhope.com

CONTACT: Angie Yang SVP, Director of Investor Relations & Corporate Communications 213-251-2219 angie.yang@bankofhope.com