Business Wire | Apr 27, 2021 04:30PM EDT

Hope Bancorp Reports 2021 First Quarter Financial Results

Apr. 27, 2021

LOS ANGELES--(BUSINESS WIRE)--Apr. 27, 2021--Hope Bancorp, Inc. (the "Company") (NASDAQ: HOPE), the holding company of Bank of Hope (the "Bank"), today reported unaudited financial results for its first quarter ended March 31, 2021.

For the three months ended March 31, 2021, net income totaled $43.7 million, or $0.35 per diluted common share, representing an increase of 54% from $28.3 million, or $0.23 per diluted common share in the fourth quarter of 2020 and an increase of 68% from $26.0 million, or $0.21 per diluted common share, in the year-ago first quarter.

"First quarter results were solid, reflecting the continued benefits of the operational improvements that we implemented in 2020," said Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc. "We continued to support our customers in this pandemic-challenged business environment by providing $305 million in the second round of PPP funding, which contributed to new loan originations totaling $847 million in the first quarter. Noninterest bearing deposits increased 13% from year-end and accounted for a record high 38% of total deposits at March 31, 2021. This contributed to a sixth consecutive quarter of declining cost of deposits, which supported another quarter of net interest margin expansion for the Company. Additionally, we continued to proactively manage our expenses which resulted in noninterest expense to average assets improving to 1.65% from 1.69% in the preceding quarter.

"During the first quarter, we saw an expected increase in our criticized assets due to the impact COVID-19 has had on the travel industry, but remain well reserved given the considerable build up of our allowance for credit losses last year in anticipation of the eventual migration of these credits in the normal course of the credit administration process. We are, however, pleased to see the continued improvements in the economy, which supported a significantly lower provision expense this quarter and contributed to a 54% increase in net income quarter-over-quarter. With the vaccination campaign in the U.S. well underway and the COVID-related restrictions gradually being lifted, we have greater confidence in our ability to deliver enhanced performance as the year proceeds."

Q1 2021 Highlights

* Net interest income before provision for credit losses increased 2% quarter-over-quarter to $122.6 million, benefiting from reduced interest expense due to lower cost of deposits. * Net interest margin expanded 4 basis points quarter-over-quarter. * Noninterest bearing demand deposits increased 13% quarter-over-quarter and increased as a percentage of total deposits to 38% from 34% at year-end 2020. * Cost of interest bearing deposits decreased 15 basis points and total cost of deposits decreased 12 basis points quarter-over-quarter continuing a six-quarter trend of declining deposit costs. * Loan originations totaled $847.1 million, including a second round of PPP fundings of $304.7 million, and contributed to a 1.0% increase in loans receivable quarter-over-quarter, or 4.1% annualized. * Efficiency ratio improved to 53.61% from 53.77% quarter-over-quarter and noninterest expense to average assets improved to 1.65% from 1.69%. * Net income increased 54% quarter-over-quarter and totaled $43.7 million, or $0.35 per diluted common share.

Financial Highlights

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

3/31/2021 12/31/2020 3/31/2020

Net income $ 43,687 $ 28,319 $ 25,953

Diluted earnings per share $ 0.35 $ 0.23 $ 0.21

Net interest income before $ 122,579 $ 120,756 $ 119,291 provision for credit losses

Net interest margin 3.06 % 3.02 % 3.31 %

Noninterest income $ 8,804 $ 11,415 $ 13,264

Noninterest expense $ 70,431 $ 71,063 $ 72,140

Net loans receivable $ 13,494,686 $ 13,356,472 $ 12,438,493

Deposits $ 14,301,269 $ 14,333,912 $ 12,836,567

Total cost of deposits 0.36 % 0.48 % 1.34 %

Nonaccrual loans^(1) $ 109,858 $ 85,238 $ 72,639

Nonperforming loans to loans 1.11 % 0.91 % 0.93 %receivable^(1)

ACL to loans receivable^ 1.52 % 1.52 % 1.15 %

ACL to nonaccrual loans^(1) 189.28 % 242.55 % 199.51 %

ACL to nonperforming assets^ 121.94 % 144.24 % 103.62 %(1)

Provision for credit losses $ 3,300 $ 27,500 $ 28,000

Net charge offs $ 2,098 $ 608 $ 3,421

Return on average assets 1.02 % 0.67 % 0.67 %("ROA")

Return on average equity 8.53 % 5.54 % 5.12 %("ROE")

Return on average tangible 11.11 % 7.21 % 6.69 %common equity ("ROTCE")^(2)

Noninterest expense / average 1.65 % 1.69 % 1.87 %assets

Efficiency ratio 53.61 % 53.77 % 54.42

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

(2) 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 9.

Operating Results for the 2021 First Quarter

Net interest income before provision for credit losses for the 2021 first quarter increased 2% to $122.6 million from $120.8 million in the 2020 fourth quarter and increased 3% from $119.3 million in the 2020 first quarter. The Company attributed the increase in net interest income primarily to meaningful reductions in interest expense due to lower trending cost of deposits.

The net interest margin for the 2021 first quarter increased 4 basis points to 3.06% from 3.02% in the preceding 2020 fourth quarter, reflecting the benefits of lower deposit costs, partially offset by lower weighted average yield on loans. The net interest margin in the prior-year first quarter was 3.31%.

The weighted average yield on loans for the 2021 first quarter was 3.94%, compared with 4.03% in the preceding fourth quarter and 5.06% in the year-ago first quarter.

The weighted average cost of deposits for the 2021 first quarter decreased for the sixth consecutive quarter to 0.36%, representing a 12 basis point decrease from 0.48% for the 2020 fourth quarter and a 98 basis point decrease from 1.34% for the 2020 first 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 interest bearing deposits. The cost of interest bearing deposits was 0.56%, 0.71% and 1.76% at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

Noninterest income totaled $8.8 million for the 2021 first quarter, compared with $11.4 million in the preceding fourth quarter. The largest factors contributing to the decrease included a $1.5 million decline in quarter-over-quarter swap fee income and a $1.2 million reduction in deposit service fees which was largely attributable to the Company's exiting certain money service business accounts. These decreases were partially offset by increases in loan servicing fees and gain on sales of residential mortgage loans. Noninterest income in the year-ago first quarter totaled $13.3 million.

Noninterest expense for the 2021 first quarter decreased to $70.4 million from $71.1 million in the preceding fourth quarter and $72.1 million in the year-ago first quarter.

Salaries and employee benefits expense for the 2021 first quarter increased 1% to $41.2 million from $40.9 million in the preceding fourth quarter and included higher payroll taxes and 401k contributions partially offset by an increase in loan origination costs of $1.4 million related to the second round of PPP funding. On a year-over-year basis, salaries and employee benefits expense decreased 3% from $42.5 million in the 2020 first quarter.

The Company's efficiency ratio for the 2021 first quarter improved to 53.61% from 53.77% for the preceding fourth quarter and from 54.42% for the year-ago first quarter. Noninterest expense as a percentage of average assets improved to 1.65% for the 2021 first quarter from 1.69% for the 2020 fourth quarter and from 1.87% for the 2020 first quarter.

The effective tax rate for the 2021 first quarter was 24.2%, compared with 15.7% for the preceding fourth quarter and 19.9% in the year-ago first quarter. The Company noted that its effective tax rate for 2020 fourth quarter reflected a lower tax provision based on adjustments to applicable state apportionment factors.

Balance Sheet Summary

New loan originations funded during the 2021 first quarter totaled $847.1 million and included second round PPP funding of $304.7 million, traditional SBA loan production of $36.8 million and residential mortgage loan originations of $69.8 million. For the preceding 2020 fourth quarter, new loan originations funded totaled $844.2 million, including SBA loan production of $25.5 million, residential mortgage loan originations of $62.5 million and fundings related to two new warehouse mortgage lines of credit of $106.8 million. In the year-ago first quarter, new loan originations funded totaled $624.5 million, including SBA loan production of $49.8 million and residential mortgage loan originations of $37.4 million. There were no new warehouse mortgage lines of credit established in the 2021 and 2020 first quarters.

At March 31, 2021, loans receivable increased 1% to $13.70 billion from $13.56 billion at December 31, 2020 and increased 9% from $12.58 billion at March 31, 2020.

Total deposits at March 31, 2021 amounted to $14.30 billion, down slightly from $14.33 billion at December 31, 2020 but up 11% from $12.84 billion a year ago at March 31, 2020. Reflecting a continuing positive shift in the mix of deposits, noninterest bearing demand deposits increased 13% quarter-over-quarter and increased 80% year-over-year and accounted for 38%, 34% and 24% of total deposits at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

Following is the deposit composition as of March 31, 2021, December 31, 2020 and March 31, 2020:

^(1) Excludes delinquent SBA loans that are guaranteed and currently inliquidation.

^(2) Return on average tangible common equity is a non-GAAP financial measure.A reconciliation of the Company's return on average tangible common equity isprovided in the accompanying financial information on Table Page 9.

Operating Results for the 2021 First Quarter

Net interest income before provision for credit losses for the 2021 first quarter increased 2% to $122.6 million from $120.8 million in the 2020 fourth quarter and increased 3% from $119.3 million in the 2020 first quarter. The Company attributed the increase in net interest income primarily to meaningful reductions in interest expense due to lower trending cost of deposits.

The net interest margin for the 2021 first quarter increased 4 basis points to 3.06% from 3.02% in the preceding 2020 fourth quarter, reflecting the benefits of lower deposit costs, partially offset by lower weighted average yield on loans. The net interest margin in the prior-year first quarter was 3.31%.

The weighted average yield on loans for the 2021 first quarter was 3.94%, compared with 4.03% in the preceding fourth quarter and 5.06% in the year-ago first quarter.

The weighted average cost of deposits for the 2021 first quarter decreased for the sixth consecutive quarter to 0.36%, representing a 12 basis point decrease from 0.48% for the 2020 fourth quarter and a 98 basis point decrease from 1.34% for the 2020 first 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 interest bearing deposits. The cost of interest bearing deposits was 0.56%, 0.71% and 1.76% at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

Noninterest income totaled $8.8 million for the 2021 first quarter, compared with $11.4 million in the preceding fourth quarter. The largest factors contributing to the decrease included a $1.5 million decline in quarter-over-quarter swap fee income and a $1.2 million reduction in deposit service fees which was largely attributable to the Company's exiting certain money service business accounts. These decreases were partially offset by increases in loan servicing fees and gain on sales of residential mortgage loans. Noninterest income in the year-ago first quarter totaled $13.3 million.

Noninterest expense for the 2021 first quarter decreased to $70.4 million from $71.1 million in the preceding fourth quarter and $72.1 million in the year-ago first quarter.

Salaries and employee benefits expense for the 2021 first quarter increased 1% to $41.2 million from $40.9 million in the preceding fourth quarter and included higher payroll taxes and 401k contributions partially offset by an increase in loan origination costs of $1.4 million related to the second round of PPP funding. On a year-over-year basis, salaries and employee benefits expense decreased 3% from $42.5 million in the 2020 first quarter.

The Company's efficiency ratio for the 2021 first quarter improved to 53.61% from 53.77% for the preceding fourth quarter and from 54.42% for the year-ago first quarter. Noninterest expense as a percentage of average assets improved to 1.65% for the 2021 first quarter from 1.69% for the 2020 fourth quarter and from 1.87% for the 2020 first quarter.

The effective tax rate for the 2021 first quarter was 24.2%, compared with 15.7% for the preceding fourth quarter and 19.9% in the year-ago first quarter. The Company noted that its effective tax rate for 2020 fourth quarter reflected a lower tax provision based on adjustments to applicable state apportionment factors.

Balance Sheet Summary

New loan originations funded during the 2021 first quarter totaled $847.1 million and included second round PPP funding of $304.7 million, traditional SBA loan production of $36.8 million and residential mortgage loan originations of $69.8 million. For the preceding 2020 fourth quarter, new loan originations funded totaled $844.2 million, including SBA loan production of $25.5 million, residential mortgage loan originations of $62.5 million and fundings related to two new warehouse mortgage lines of credit of $106.8 million. In the year-ago first quarter, new loan originations funded totaled $624.5 million, including SBA loan production of $49.8 million and residential mortgage loan originations of $37.4 million. There were no new warehouse mortgage lines of credit established in the 2021 and 2020 first quarters.

At March 31, 2021, loans receivable increased 1% to $13.70 billion from $13.56 billion at December 31, 2020 and increased 9% from $12.58 billion at March 31, 2020.

Total deposits at March 31, 2021 amounted to $14.30 billion, down slightly from $14.33 billion at December 31, 2020 but up 11% from $12.84 billion a year ago at March 31, 2020. Reflecting a continuing positive shift in the mix of deposits, noninterest bearing demand deposits increased 13% quarter-over-quarter and increased 80% year-over-year and accounted for 38%, 34% and 24% of total deposits at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

Following is the deposit composition as of March 31, 2021, December 31, 2020 and March 31, 2020:

(dollars in % %thousands) 3/31/2021 12/31/2020 change 3/31/2020 change(unaudited)

Noninterestbearing $ 5,427,174 $ 4,814,254 13 % $ 3,010,143 80 %demanddeposits

Money market 5,009,419 5,232,413 (4 )% 4,851,000 3 %and other

Saving 305,326 300,770 2 % 272,577 12 %deposits

Time 3,559,350 3,986,475 (11 )% 4,702,847 (24 )%deposits

Totaldeposit $ 14,301,269 $ 14,333,912 - % $ 12,836,567 11 %balances

Following is the deposit composition as a percentage of total deposits and a breakdown of cost of deposits as of and for the quarters ended March 31, 2021, December 31, 2020 and March 31, 2020:

Deposit Breakdown Cost of Deposits

(dollars in thousands) 3/31/ 12/31/ 3/31/ Q1 Q4 Q1(unaudited) 2021 2020 2020 2021 2020 2020

Noninterest bearing demand 38.0 % 33.6 % 23.5 % - % - % - %deposits

Money market and other 35.0 % 36.5 % 37.8 % 0.42 % 0.45 % 1.42 %

Saving deposits 2.1 % 2.1 % 2.1 % 1.17 % 1.17 % 1.19 %

Time deposits 24.9 % 27.8 % 36.6 % 0.69 % 0.98 % 2.09 %

Total deposit balances 100.0 % 100.0 % 100.0 % 0.36 % 0.48 % 1.34 %

Allowance for Credit Losses

The 2021 first quarter provision for credit losses under the CECL methodology was $3.3 million, compared with $27.5 million for the preceding fourth quarter and $28.0 million for the 2020 first quarter. The provision for credit losses for the 2021 first quarter reflects updated macroeconomic variables incorporating the Moody's Analytics Consensus scenario that continue to show improving trends that support a strong economic recovery and taking into account the Company's significant buildup in reserves in prior periods in consideration of the pandemic's expected impact on its loan portfolio, as well as its low level of credit losses.

Following is the Allowance for Credit Losses as of March 31, 2021, December 31, 2020 and March 31, 2020:

(dollars in thousands) (unaudited) 3/31/2021 12/31/2020 3/31/2020

Allowance for credit losses $ 207,943 $ 206,741 $ 144,923

Allowance for credit loss/loans receivable 1.52 % 1.52 % 1.15 %

Allowance for credit losses/nonperforming 136.79 % 167.80 % 124.06 %loans

Credit Quality

Following are the components of nonperforming assets as of March 31, 2021, December 31, 2020 and March 31, 2020:

(dollars in thousands) (unaudited) 3/31/2021 12/31/2020 3/31/2020

Loans on nonaccrual status ^(1) $ 109,858 $ 85,238 $ 72,639

Delinquent loans 90 days or more on 384 614 387 accrual status

Accruing troubled debt restructured loans 41,773 37,354 43,789

Total nonperforming loans 152,015 123,206 116,815

Other real estate owned 18,515 20,121 23,039

Total nonperforming assets $ 170,530 $ 143,327 $ 139,854

(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $25.0 million, $26.5 million and $28.8 million, at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

The $24.6 million increase in loans on nonaccrual status largely reflects the addition of a $23.5 million retail commercial real estate loan. The Company noted that this was a unique situation due to the borrower's involvement in a legal dispute and not reflective of any systemic deterioration for these property types.

Following are the components of criticized loan balances as of March 31, 2021, December 31, 2020 and March 31, 2020:

^(1) Excludes delinquent SBA loans that are guaranteed and currently inliquidation totaling $25.0 million, $26.5 million and $28.8 million, at March31, 2021, December 31, 2020 and March 31, 2020, respectively.

The $24.6 million increase in loans on nonaccrual status largely reflects the addition of a $23.5 million retail commercial real estate loan. The Company noted that this was a unique situation due to the borrower's involvement in a legal dispute and not reflective of any systemic deterioration for these property types.

Following are the components of criticized loan balances as of March 31, 2021, December 31, 2020 and March 31, 2020:

(dollars in thousands) (unaudited) 3/31/2021 12/31/2020 3/31/2020

Special Mention $ 280,974 $ 184,941 $ 122,279

Classified 379,048 366,557 278,783

Criticized $ 660,022 $ 551,498 $ 401,062

The increase in criticized loans quarter-over-quarter primarily reflects downgrades in the Company's hotel/motel portfolio to the Special Mention category. The Company noted that the performance of these loans was consistent with expectations when reserves were increased in 2020 and that no new issues for these borrowers have emerged.

Net charge offs in the 2021 first quarter totaled $2.1 million, or 0.06% of average loans receivable on an annualized basis. This compares with net charge offs of $608,000, or 0.02% of average loans receivable on an annualized basis for the 2020 fourth quarter and $3.4 million, or 0.11% of average loans receivable on an annualized basis for the 2020 first quarter.

Capital

At March 31, 2021, 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 March 31, 2021, December 31, 2020 and March 31, 2020:

Minimum GuidelineHope Bancorp, Inc. 3/31/ 12/31/ 3/31/ for(unaudited) 2021 2020 2020 "Well-Capitalized" Bank

Common Equity Tier 1 11.08 % 10.94 % 11.44 % 6.50 %Capital

Tier 1 Leverage Ratio 10.15 % 10.22 % 10.88 % 5.00 %

Tier 1 Risk-Based Ratio 11.78 % 11.64 % 12.19 % 8.00 %

Total Risk-Based Ratio 13.03 % 12.87 % 13.08 % 10.00 %

Following are tangible common equity ("TCE") per share and TCE as a percentage of tangible assets as of March 31, 2021, December 31, 2020 and March 31, 2020:

(unaudited) 3/31/2021 12/31/ 3/31/2020 2020

Tangible common equity per share ^(1) $ 12.73 $ 12.81 $ 12.52

Tangible common equity to tangible assets ^ 9.40 % 9.50 % 9.92 %(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 9.

(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 9.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Wednesday, April 28, 2021 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2021. 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 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 May 5, 2021, replay access code 10154357.

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 $17.2 billion in total assets as of March 31, 2021. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 53 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. 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.

^(1) Tangible common equity represents common equity less goodwill and netother intangible assets. Tangible common equity per share represents tangiblecommon equity divided by the number of shares issued and outstanding. Bothtangible common equity and tangible common equity per share are non-GAAPfinancial measures. A reconciliation of the Company's total stockholders'equity to tangible common equity is provided in the accompanying financialinformation on Table Page 9.

^(2) Tangible assets represent total assets less goodwill and net otherintangible assets. Tangible common equity to tangible assets is the ratio oftangible common equity over tangible assets. Tangible common equity to tangibleassets is a non-GAAP financial measure. A reconciliation of the Company's totalassets to tangible assets is provided in the accompanying financial informationon Table Page 9.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Wednesday, April 28, 2021 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its first quarter ended March 31, 2021. 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 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 May 5, 2021, replay access code 10154357.

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 $17.2 billion in total assets as of March 31, 2021. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 53 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. 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 and per share data)

Assets: 3/31/2021 12/31/2020 % 3/31/2020 % change change

Cash and due $ 376,666 $ 350,579 7 % $ 802,033 (53 )%from banks

Securitiesavailable for 2,233,744 2,285,611 (2 )% 1,718,702 30 %sale, at fairvalue

Federal HomeLoan Bank("FHLB") 102,242 105,591 (3 )% 96,956 5 %stock andotherinvestments

Loans heldfor sale, atthe lower of 19,672 17,743 11 % 8,281 138 %cost or fairvalue

Loans 13,702,629 13,563,213 1 % 12,583,416 9 %receivable

Allowance for (207,943 ) (206,741 ) 1 % (144,923 ) 43 %credit losses

Net loans 13,494,686 13,356,472 1 % 12,438,493 8 %receivable

Accruedinterest 60,498 59,430 2 % 30,450 99 %receivable

Premises andequipment, 47,918 48,409 (1 )% 51,392 (7 )%net

Bank ownedlife 77,089 76,765 - % 76,429 1 %insurance

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

Servicing 12,084 12,692 (5 )% 14,847 (19 )%assets

Otherintangible 9,198 9,708 (5 )% 11,302 (19 )%assets, net

Other assets 300,613 319,214 (6 )% 308,099 (2 )%

Total assets $ 17,198,860 $ 17,106,664 1 % $ 16,021,434 7 %



Liabilities:

Deposits $ 14,301,269 $ 14,333,912 - % $ 12,836,567 11 %

FHLB advances 400,000 250,000 60 % 675,000 (41 )%

Convertible 215,504 204,565 5 % 200,716 7 %notes, net

Subordinated 104,469 104,178 - % 103,318 1 %debentures

Accruedinterest 8,611 14,706 (41 )% 30,436 (72 )%payable

Other 123,426 145,558 (15 )% 157,309 (22 )%liabilities

Total $ 15,153,279 $ 15,052,919 1 % $ 14,003,346 8 %liabilities



Stockholders' Equity:

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

Capital 1,417,137 1,434,916 (1 )% 1,429,275 (1 )%surplus

Retained 823,085 785,940 5 % 752,228 9 %earnings

Treasurystock, at (200,000 ) (200,000 ) - % (200,000 ) - %cost

Accumulatedother 5,223 32,753 (84 )% 36,449 (86 )%comprehensivegain, net

Totalstockholders' 2,045,581 2,053,745 - % 2,018,088 1 %equity

Totalliabilitiesand $ 17,198,860 $ 17,106,664 1 % $ 16,021,434 7 %stockholders'equity



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

Common stockshares - 123,480,494 123,264,864 123,169,404 outstanding

Treasury 12,661,581 12,661,581 12,661,581 stock shares

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

Three Months Ended

3/31/2021

12/31/2020

% change

3/31/2020

% change

Interest and fees on loans

$

129,736

$

132,117

(2

)%

$

154,230

(16

)%

Interest on securities

7,915

9,014

(12

)%

10,609

(25

)%

Interest on federal funds sold and other investments

642

598

7

%

2,029

(68

)%

Total interest income

138,293

141,729

(2

)%

166,868

(17

)%

Interest on deposits

12,770

16,934

(25

)%

41,113

(69

)%

Interest on other borrowings and convertible notes

2,944

4,039

(27

)%

6,464

(54

)%

Total interest expense

15,714

20,973

(25

)%

47,577

(67

)%

Net interest income before provision for credit losses

122,579

120,756

2

%

119,291

3

%

Provision for credit losses

3,300

27,500

(88

)%

28,000

(88

)%

Net interest income after provision for credit losses

119,279

93,256

28

%

91,291

31

%

Service fees on deposit accounts

1,790

2,991

(40

)%

4,133

(57

)%

International service fees

841

696

21

%

790

6

%

Loan servicing fees, net

1,044

566

84

%

365

186

%

Wire transfer fees

844

867

(3

)%

998

(15

)%

Net gains on sales of other loans

2,096

1,618

30

%

1,855

13

%

Other income and fees

2,189

4,677

(53

)%

5,123

(57

)%

Total noninterest income

8,804

11,415

(23

)%

13,264

(34

)%

Salaries and employee benefits

41,216

40,911

1

%

42,502

(3

)%

Occupancy

6,967

7,200

(3

)%

7,410

(6

)%

Furniture and equipment

4,186

4,122

2

%

4,259

(2

)%

Advertising and marketing

1,625

1,695

(4

)%

1,673

(3

)%

Data processing and communications

2,737

2,235

22

%

2,631

4

%

Professional fees

2,903

1,847

57

%

3,300

(12

)%

FDIC assessment

1,255

1,166

8

%

1,559

(19

)%

Credit related expenses

2,218

2,001

11

%

1,662

33

%

OREO expense (income), net

281

(86

)

N/A

843

(67

)%

Branch restructuring costs

-

2,367

(100

)%

-

-

%

Other

7,043

7,605

(7

)%

6,301

12

%

Total noninterest expense

70,431

71,063

(1

)%

72,140

(2

)%

Income before income taxes

57,652

33,608

72

%

32,415

78

%

Income tax provision

13,965

5,289

164

%

6,462

116

%

Net income

$

43,687

$

28,319

54

%

$

25,953

68

%

Earnings Per Common Share:

Basic

$

0.35

$

0.23

$

0.21

Diluted

$

0.35

$

0.23

$

0.21

Weighted Average Shares Outstanding:

Basic

123,324,745

123,264,172

124,295,327

Diluted

124,336,130

123,874,229

124,676,296

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

Three Months Ended

3/31/2021 12/31/2020 % 3/31/2020 % change change



Interest and $ 129,736 $ 132,117 (2 ) $ 154,230 (16 )%fees on loans %

Interest on 7,915 9,014 (12 ) 10,609 (25 )%securities %

Interest onfederal funds 642 598 7 % 2,029 (68 )%sold and otherinvestments

Total interest 138,293 141,729 (2 ) 166,868 (17 )%income %



Interest on 12,770 16,934 (25 ) 41,113 (69 )%deposits %

Interest onother )borrowings and 2,944 4,039 (27 % 6,464 (54 )%convertiblenotes

Total interest 15,714 20,973 (25 ) 47,577 (67 )%expense %



Net interestincome before 122,579 120,756 2 % 119,291 3 %provision forcredit losses

Provision for 3,300 27,500 (88 ) 28,000 (88 )%credit losses %

Net interestincome after 119,279 93,256 28 % 91,291 31 %provision forcredit losses



Service fees )on deposit 1,790 2,991 (40 % 4,133 (57 )%accounts

International 841 696 21 % 790 6 %service fees

Loan servicing 1,044 566 84 % 365 186 %fees, net

Wire transfer 844 867 (3 ) 998 (15 )%fees %

Net gains onsales of other 2,096 1,618 30 % 1,855 13 %loans

Other income 2,189 4,677 (53 ) 5,123 (57 )%and fees %

Total )noninterest 8,804 11,415 (23 % 13,264 (34 )%income



Salaries andemployee 41,216 40,911 1 % 42,502 (3 )%benefits

Occupancy 6,967 7,200 (3 ) 7,410 (6 )% %

Furniture and 4,186 4,122 2 % 4,259 (2 )%equipment

Advertising 1,625 1,695 (4 ) 1,673 (3 )%and marketing %

Dataprocessing and 2,737 2,235 22 % 2,631 4 %communications

Professional 2,903 1,847 57 % 3,300 (12 )%fees

FDIC 1,255 1,166 8 % 1,559 (19 )%assessment

Credit related 2,218 2,001 11 % 1,662 33 %expenses

OREO expense 281 (86 ) N/A 843 (67 )%(income), net

Branch )restructuring - 2,367 (100 % - - %costs

Other 7,043 7,605 (7 ) 6,301 12 % %

Total )noninterest 70,431 71,063 (1 % 72,140 (2 )%expense

Income before 57,652 33,608 72 % 32,415 78 %income taxes

Income tax 13,965 5,289 164 % 6,462 116 %provision

Net income $ 43,687 $ 28,319 54 % $ 25,953 68 %



Earnings Per Common Share:

Basic $ 0.35 $ 0.23 $ 0.21

Diluted $ 0.35 $ 0.23 $ 0.21



WeightedAverage Shares Outstanding:

Basic 123,324,745 123,264,172 124,295,327

Diluted 124,336,130 123,874,229 124,676,296

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

For the Three Months Ended

(Annualized)

Profitability measures:

3/31/2021

12/31/2020

3/31/2020

ROA

1.02

%

0.67

%

0.67

%

ROE

8.53

%

5.54

%

5.12

%

ROTCE (1)

11.11

%

7.21

%

6.69

%

Net interest margin

3.06

%

3.02

%

3.31

%

Efficiency ratio

53.61

%

53.77

%

54.42

%

Noninterest expense / average assets

1.65

%

1.69

%

1.87

%

(1) Average tangible equity is calculated by subtracting average goodwill and average core deposit intangible 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

Pre-tax acquisition accounting adjustments:

3/31/2021

12/31/2020

3/31/2020

Accretion on purchased non-impaired loans

$

705

$

452

$

1,059

Accretion on purchased credit deteriorated/purchased credit impaired loans

2,255

3,064

9,449

Amortization of premium on low income housing tax credits

(73

)

(71

)

(71

)

Accretion of discount on acquired subordinated debt

(290

)

(289

)

(283

)

Amortization of core deposit intangibles

(509

)

(531

)

(531

)

Total acquisition accounting adjustments

$

2,088

$

2,625

$

9,623

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)



For the Three Months Ended (Annualized)

Profitability measures: 3/31/2021 12/31/ 3/31/2020 2020

ROA 1.02 % 0.67 % 0.67 %

ROE 8.53 % 5.54 % 5.12 %

ROTCE ^(1) 11.11 % 7.21 % 6.69 %

Net interest margin 3.06 % 3.02 % 3.31 %

Efficiency ratio 53.61 % 53.77 % 54.42 %

Noninterest expense / average assets 1.65 % 1.69 % 1.87 %

^(1) Average tangible equity is calculated by subtracting average goodwill andaverage core deposit intangible 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

Pre-tax acquisition accounting adjustments: 3/31/2021 12/31/ 3/31/2020 2020

Accretion on purchased non-impaired loans $ 705 $ 452 $ 1,059

Accretion on purchased credit deteriorated/ 2,255 3,064 9,449 purchased credit impaired loans

Amortization of premium on low income housing (73 ) (71 ) (71 )tax credits

Accretion of discount on acquired subordinated (290 ) (289 ) (283 )debt

Amortization of core deposit intangibles (509 ) (531 ) (531 )

Total acquisition accounting adjustments $ 2,088 $ 2,625 $ 9,623

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

3/31/2021

12/31/2020

3/31/2020

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

$

13,346,264

$

129,736

3.94

%

$

13,046,443

$

132,117

4.03

%

$

12,259,848

$

154,230

5.06

%

Securities available for sale

2,267,409

7,915

1.42

%

2,123,025

9,014

1.69

%

1,712,033

10,609

2.49

%

FHLB stock and other investments

640,392

642

0.41

%

749,281

598

0.32

%

519,309

2,029

1.57

%

Total interest earning assets

$

16,254,065

$

138,293

3.45

%

$

15,918,749

$

141,729

3.54

%

$

14,491,190

$

166,868

4.63

%

INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest bearing

$

5,256,579

$

5,490

0.42

%

$

4,910,649

$

5,541

0.45

%

$

4,204,406

$

14,880

1.42

%

Savings

301,184

870

1.17

%

305,341

898

1.17

%

274,075

808

1.19

%

Time deposits

3,767,109

6,410

0.69

%

4,240,500

10,495

0.98

%

4,900,405

25,425

2.09

%

Total interest bearing deposits

9,324,872

12,770

0.56

%

9,456,490

16,934

0.71

%

9,378,886

41,113

1.76

%

FHLB advances

215,889

642

1.21

%

204,900

657

1.28

%

594,890

2,647

1.79

%

Convertible notes, net

215,002

1,322

2.46

%

203,807

2,383

4.58

%

199,960

2,346

4.64

%

Subordinated debentures

100,392

980

3.90

%

100,118

999

3.90

%

99,252

1,471

5.86

%

Total interest bearing liabilities

$

9,856,155

$

15,714

0.65

%

$

9,965,315

$

20,973

0.84

%

$

10,272,988

$

47,577

1.86

%

Noninterest bearing demand deposits

5,052,532

4,637,584

2,963,136

Total funding liabilities/cost of funds

$

14,908,687

0.43

%

$

14,602,899

0.57

%

$

13,236,124

1.45

%

Net interest income/net interest spread

$

122,579

2.80

%

$

120,756

2.70

%

$

119,291

2.77

%

Net interest margin

3.06

%

3.02

%

3.31

%

Cost of deposits:

Noninterest bearing demand deposits

$

5,052,532

$

-

-

%

$

4,637,584

$

-

-

%

$

2,963,136

$

-

-

%

Interest bearing deposits

9,324,872

12,770

0.56

%

9,456,490

16,934

0.71

%

9,378,886

41,113

1.76

%

Total deposits

$

14,377,404

$

12,770

0.36

%

$

14,094,074

$

16,934

0.48

%

$

12,342,022

$

41,113

1.34

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

3/31/2021 12/31/2020 3/31/2020

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 $ 13,346,264 $ 129,736 3.94 % $ 13,046,443 $ 132,117 4.03 % $ 12,259,848 $ 154,230 5.06 %sale

Securitiesavailable for 2,267,409 7,915 1.42 % 2,123,025 9,014 1.69 % 1,712,033 10,609 2.49 %sale

FHLB stock andother 640,392 642 0.41 % 749,281 598 0.32 % 519,309 2,029 1.57 %investments

Total interest $ 16,254,065 $ 138,293 3.45 % $ 15,918,749 $ 141,729 3.54 % $ 14,491,190 $ 166,868 4.63 %earning assets



INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest $ 5,256,579 $ 5,490 0.42 % $ 4,910,649 $ 5,541 0.45 % $ 4,204,406 $ 14,880 1.42 %bearing

Savings 301,184 870 1.17 % 305,341 898 1.17 % 274,075 808 1.19 %

Time deposits 3,767,109 6,410 0.69 % 4,240,500 10,495 0.98 % 4,900,405 25,425 2.09 %

Total interest 9,324,872 12,770 0.56 % 9,456,490 16,934 0.71 % 9,378,886 41,113 1.76 %bearing deposits

FHLB advances 215,889 642 1.21 % 204,900 657 1.28 % 594,890 2,647 1.79 %

Convertible 215,002 1,322 2.46 % 203,807 2,383 4.58 % 199,960 2,346 4.64 %notes, net

Subordinated 100,392 980 3.90 % 100,118 999 3.90 % 99,252 1,471 5.86 %debentures

Total interestbearing $ 9,856,155 $ 15,714 0.65 % $ 9,965,315 $ 20,973 0.84 % $ 10,272,988 $ 47,577 1.86 %liabilities

Noninterestbearing demand 5,052,532 4,637,584 2,963,136 deposits

Total fundingliabilities/cost $ 14,908,687 0.43 % $ 14,602,899 0.57 % $ 13,236,124 1.45 %of funds

Net interestincome/net $ 122,579 2.80 % $ 120,756 2.70 % $ 119,291 2.77 %interest spread

Net interest 3.06 % 3.02 % 3.31 %margin



Cost of deposits:

Noninterestbearing demand $ 5,052,532 $ - - % $ 4,637,584 $ - - % $ 2,963,136 $ - - %deposits

Interest bearing 9,324,872 12,770 0.56 % 9,456,490 16,934 0.71 % 9,378,886 41,113 1.76 %deposits

Total deposits $ 14,377,404 $ 12,770 0.36 % $ 14,094,074 $ 16,934 0.48 % $ 12,342,022 $ 41,113 1.34

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

AVERAGE BALANCES:

3/31/2021

12/31/2020

% change

3/31/2020

% change

Loans receivable, including loans held for sale

$

13,346,264

$

13,046,443

2

%

$

12,259,848

9

%

Investments

2,907,801

2,872,306

1

%

2,231,342

30

%

Interest earning assets

16,254,065

15,918,749

2

%

14,491,190

12

%

Total assets

17,115,407

16,824,700

2

%

15,446,807

11

%

Interest bearing deposits

9,324,872

9,456,490

(1

)%

9,378,886

(1

)%

Interest bearing liabilities

9,856,155

9,965,315

(1

)%

10,272,988

(4

)%

Noninterest bearing demand deposits

5,052,532

4,637,584

9

%

2,963,136

71

%

Stockholders' equity

2,047,506

2,045,959

-

%

2,027,595

1

%

Net interest earning assets

6,397,910

5,953,434

7

%

4,218,202

52

%

LOAN PORTFOLIO COMPOSITION:

3/31/2021

12/31/2020

% change

3/31/2020

% change

Commercial loans

$

4,346,244

$

4,157,787

5

%

$

3,067,132

42

%

Real estate loans

8,811,423

8,772,134

-

%

8,681,222

1

%

Consumer and other loans

544,962

633,292

(14

)%

835,062

(35

)%

Loans, net of deferred loan fees and costs

13,702,629

13,563,213

1

%

12,583,416

9

%

Allowance for credit losses

(207,943

)

(206,741

)

1

%

(144,923

)

43

%

Loan receivable, net

$

13,494,686

$

13,356,472

1

%

$

12,438,493

8

%

REAL ESTATE LOANS BY PROPERTY TYPE:

3/31/2021

12/31/2020

% change

3/31/2020

% change

Retail buildings

$

2,317,017

$

2,293,396

1

%

$

2,314,885

-

%

Hotels/motels

1,619,661

1,634,287

(1

)%

1,706,082

(5

)%

Gas stations/car washes

913,176

892,110

2

%

852,077

7

%

Mixed-use facilities

752,729

750,867

-

%

770,825

(2

)%

Warehouses

1,092,549

1,091,389

-

%

1,024,832

7

%

Multifamily

531,306

518,498

2

%

481,425

10

%

Other

1,584,985

1,591,587

-

%

1,531,096

4

%

Total

$

8,811,423

$

8,772,134

-

%

$

8,681,222

1

%

DEPOSIT COMPOSITION

3/31/2021

12/31/2020

% change

3/31/2020

% change

Noninterest bearing demand deposits

$

5,427,174

$

4,814,254

13

%

$

3,010,143

80

%

Money market and other

5,009,419

5,232,413

(4

)%

4,851,000

3

%

Saving deposits

305,326

300,770

2

%

272,577

12

%

Time deposits

3,559,350

3,986,475

(11

)%

4,702,847

(24

)%

Total deposit balances

$

14,301,269

$

14,333,912

-

%

$

12,836,567

11

%

DEPOSIT COMPOSITION (%)

3/31/2021

12/31/2020

3/31/2020

Noninterest bearing demand deposits

38.0

%

33.6

%

23.5

%

Money market and other

35.0

%

36.5

%

37.8

%

Saving deposits

2.1

%

2.1

%

2.1

%

Time deposits

24.9

%

27.8

%

36.6

%

Total deposit balances

100.0

%

100.0

%

100.0

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

AVERAGE 3/31/2021 12/31/2020 % 3/31/2020 %BALANCES: change change

Loansreceivable,including $ 13,346,264 $ 13,046,443 2 % $ 12,259,848 9 %loans heldfor sale

Investments 2,907,801 2,872,306 1 % 2,231,342 30 %

Interestearning 16,254,065 15,918,749 2 % 14,491,190 12 %assets

Total assets 17,115,407 16,824,700 2 % 15,446,807 11 %



Interestbearing 9,324,872 9,456,490 (1 )% 9,378,886 (1 )%deposits

Interestbearing 9,856,155 9,965,315 (1 )% 10,272,988 (4 )%liabilities

Noninterestbearing 5,052,532 4,637,584 9 % 2,963,136 71 %demanddeposits

Stockholders' 2,047,506 2,045,959 - % 2,027,595 1 %equity

Net interestearning 6,397,910 5,953,434 7 % 4,218,202 52 %assets



LOAN % %PORTFOLIO 3/31/2021 12/31/2020 change 3/31/2020 changeCOMPOSITION:

Commercial $ 4,346,244 $ 4,157,787 5 % $ 3,067,132 42 %loans

Real estate 8,811,423 8,772,134 - % 8,681,222 1 %loans

Consumer and 544,962 633,292 (14 )% 835,062 (35 )%other loans

Loans, net ofdeferred loan 13,702,629 13,563,213 1 % 12,583,416 9 %fees andcosts

Allowance for (207,943 ) (206,741 ) 1 % (144,923 ) 43 %credit losses

Loanreceivable, $ 13,494,686 $ 13,356,472 1 % $ 12,438,493 8 %net



REAL ESTATELOANS BY 3/31/2021 12/31/2020 % 3/31/2020 %PROPERTY change changeTYPE:

Retail $ 2,317,017 $ 2,293,396 1 % $ 2,314,885 - %buildings

Hotels/motels 1,619,661 1,634,287 (1 )% 1,706,082 (5 )%

Gas stations/ 913,176 892,110 2 % 852,077 7 %car washes

Mixed-use 752,729 750,867 - % 770,825 (2 )%facilities

Warehouses 1,092,549 1,091,389 - % 1,024,832 7 %

Multifamily 531,306 518,498 2 % 481,425 10 %

Other 1,584,985 1,591,587 - % 1,531,096 4 %

Total $ 8,811,423 $ 8,772,134 - % $ 8,681,222 1 %



DEPOSIT 3/31/2021 12/31/2020 % 3/31/2020 %COMPOSITION change change

Noninterestbearing $ 5,427,174 $ 4,814,254 13 % $ 3,010,143 80 %demanddeposits

Money market 5,009,419 5,232,413 (4 )% 4,851,000 3 %and other

Saving 305,326 300,770 2 % 272,577 12 %deposits

Time deposits 3,559,350 3,986,475 (11 )% 4,702,847 (24 )%

Total deposit $ 14,301,269 $ 14,333,912 - % $ 12,836,567 11 %balances



DEPOSITCOMPOSITION 3/31/2021 12/31/2020 3/31/2020 (%)

Noninterestbearing 38.0 % 33.6 % 23.5 % demanddeposits

Money market 35.0 % 36.5 % 37.8 % and other

Saving 2.1 % 2.1 % 2.1 % deposits

Time deposits 24.9 % 27.8 % 36.6 %

Total deposit 100.0 % 100.0 % 100.0 % balances

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

CAPITAL RATIOS:

3/31/2021

12/31/2020

3/31/2020

Total stockholders' equity

$

2,045,581

$

2,053,745

$

2,018,088

Common equity tier 1 ratio

11.08

%

10.94

%

11.44

%

Tier 1 risk-based capital ratio

11.78

%

11.64

%

12.19

%

Total risk-based capital ratio

13.03

%

12.87

%

13.08

%

Tier 1 leverage ratio

10.15

%

10.22

%

10.88

%

Total risk weighted assets

$

14,338,828

$

14,341,456

$

13,348,162

Book value per common share

$

16.57

$

16.66

$

16.38

Tangible common equity to tangible assets 1

9.40

%

9.50

%

9.92

%

Tangible common equity per share 1

$

12.73

$

12.81

$

12.52

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

ALLOWANCE FOR CREDIT LOSSES CHANGES:

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Balance at beginning of period

$

206,741

$

179,849

$

161,771

$

144,923

$

94,144

CECL day 1 adoption impact

-

-

-

-

26,200

Provision for credit losses

3,300

27,500

22,000

17,500

28,000

Recoveries

1,423

2,207

2,428

252

2,536

Charge offs

(3,521

)

(2,815

)

(6,350

)

(904

)

(5,957

)

Balance at end of period

$

207,943

$

206,741

$

179,849

$

161,771

$

144,923

Net charge offs/average loans receivable (annualized)

0.06

%

0.02

%

0.12

%

0.02

%

0.11

%

Three Months Ended

NET LOAN CHARGE OFFS (RECOVERIES):

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Real estate loans

$

2,234

$

(726

)

$

5,154

$

148

$

2,230

Commercial loans

(80

)

1,167

(1,451

)

240

676

Consumer loans

(56

)

167

219

264

515

Total net charge offs

$

2,098

$

608

$

3,922

$

652

$

3,421



Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per sharedata)

CAPITAL 3/31/2021 12/31/2020 3/31/2020 RATIOS:

Totalstockholders' $ 2,045,581 $ 2,053,745 $ 2,018,088 equity

Common equity 11.08 % 10.94 % 11.44 % tier 1 ratio

Tier 1risk-based 11.78 % 11.64 % 12.19 % capital ratio

Totalrisk-based 13.03 % 12.87 % 13.08 % capital ratio

Tier 1leverage 10.15 % 10.22 % 10.88 % ratio

Total riskweighted $ 14,338,828 $ 14,341,456 $ 13,348,162 assets

Book valueper common $ 16.57 $ 16.66 $ 16.38 share

Tangiblecommon equity 9.40 % 9.50 % 9.92 % to tangibleassets ^1

Tangiblecommon equity $ 12.73 $ 12.81 $ 12.52 per share ^1



^1 Tangible common equity to tangible assets is a non-GAAP financial measurethat represents common equity less goodwill and core deposit intangibleassets, net divided by total assets less goodwill and core depositintangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company's capital levels and has includedthis ratio in response to market participant interest in tangible commonequity as a measure of capital.

Three Months Ended

ALLOWANCE FORCREDIT LOSSES 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020CHANGES:

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

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

Provision for 3,300 27,500 22,000 17,500 28,000 credit losses

Recoveries 1,423 2,207 2,428 252 2,536

Charge offs (3,521 ) (2,815 ) (6,350 ) (904 ) (5,957 )

Balance at $ 207,943 $ 206,741 $ 179,849 $ 161,771 $ 144,923 end of period

Net chargeoffs/averageloans 0.06 % 0.02 % 0.12 % 0.02 % 0.11 %receivable(annualized)



Three Months Ended

NET LOANCHARGE OFFS 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020(RECOVERIES):

Real estate $ 2,234 $ (726 ) $ 5,154 $ 148 $ 2,230 loans

Commercial (80 ) 1,167 (1,451 ) 240 676 loans

Consumer (56 ) 167 219 264 515 loans

Total net $ 2,098 $ 608 $ 3,922 $ 652 $ 3,421 charge offs



Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

NONPERFORMING ASSETS:

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Loans on nonaccrual status 3

$

109,858

$

85,238

$

69,205

$

82,137

$

72,639

Delinquent loans 90 days or more on accrual status

384

614

1,537

430

387

Accruing troubled debt restructured loans

41,773

37,354

35,429

44,026

43,789

Total nonperforming loans

152,015

123,206

106,171

126,593

116,815

Other real estate owned

18,515

20,121

18,410

20,983

23,039

Total nonperforming assets

$

170,530

$

143,327

$

124,581

$

147,576

$

139,854

Nonperforming assets/total assets

0.99

%

0.84

%

0.74

%

0.86

%

0.87

%

Nonperforming assets/loans receivable & OREO

1.24

%

1.06

%

0.95

%

1.14

%

1.11

%

Nonperforming assets/total capital

8.34

%

6.98

%

6.11

%

7.27

%

6.93

%

Nonperforming loans/loans receivable

1.11

%

0.91

%

0.81

%

0.98

%

0.93

%

Nonaccrual loans/loans receivable

0.80

%

0.63

%

0.53

%

0.64

%

0.58

%

Allowance for credit losses/loans receivable

1.52

%

1.52

%

1.37

%

1.26

%

1.15

%

Allowance for credit losses/nonaccrual loans

189.28

%

242.55

%

259.88

%

196.95

%

199.51

%

Allowance for credit losses/nonperforming loans

136.79

%

167.80

%

169.40

%

127.79

%

124.06

%

Allowance for credit losses/nonperforming assets

121.94

%

144.24

%

144.36

%

109.62

%

103.62

%

3 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $25.0 million, $26.5 million, $26.2 million, $30.3 million, and $28.8 million at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.

NONACCRUAL LOANS BY TYPE:

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Real estate loans

$

91,940

$

67,450

$

51,739

$

64,060

$

56,787

Commercial loans

14,080

13,911

13,022

12,079

12,747

Consumer loans

3,838

3,877

4,444

5,998

3,105

Total nonaccrual loans

$

109,858

$

85,238

$

69,205

$

82,137

$

72,639

BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Retail buildings

$

6,319

$

5,408

$

5,451

$

5,526

$

5,014

Gas stations/car washes

210

219

224

1,789

1,675

Mixed-use facilities

3,377

3,521

4,323

3,583

3,157

Warehouses

14,124

7,296

7,320

13,433

13,381

Other 5

17,743

20,910

18,111

19,695

20,562

Total

$

41,773

$

37,354

$

35,429

$

44,026

$

43,789

5 Includes commercial business, consumer, and other loans

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

NONPERFORMING 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020ASSETS:

Loans onnonaccrual $ 109,858 $ 85,238 $ 69,205 $ 82,137 $ 72,639 status ^3

Delinquentloans 90 daysor more on 384 614 1,537 430 387 accrualstatus

Accruingtroubled debt 41,773 37,354 35,429 44,026 43,789 restructuredloans

Totalnonperforming 152,015 123,206 106,171 126,593 116,815 loans

Other real 18,515 20,121 18,410 20,983 23,039 estate owned

Totalnonperforming $ 170,530 $ 143,327 $ 124,581 $ 147,576 $ 139,854 assets

Nonperformingassets/total 0.99 % 0.84 % 0.74 % 0.86 % 0.87 %assets

Nonperformingassets/loans 1.24 % 1.06 % 0.95 % 1.14 % 1.11 %receivable &OREO

Nonperformingassets/total 8.34 % 6.98 % 6.11 % 7.27 % 6.93 %capital

Nonperformingloans/loans 1.11 % 0.91 % 0.81 % 0.98 % 0.93 %receivable

Nonaccrualloans/loans 0.80 % 0.63 % 0.53 % 0.64 % 0.58 %receivable

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

Allowance forcredit losses 189.28 % 242.55 % 259.88 % 196.95 % 199.51 %/nonaccrualloans

Allowance forcredit losses/ 136.79 % 167.80 % 169.40 % 127.79 % 124.06 %nonperformingloans

Allowance forcredit losses/ 121.94 % 144.24 % 144.36 % 109.62 % 103.62 %nonperformingassets



^3 Excludes delinquent SBA loans that are guaranteed and currently inliquidation totaling $25.0 million, $26.5 million, $26.2 million, $30.3million, and $28.8 million at March 31, 2021, December 31, 2020, September 30,2020, June 30, 2020, and March 31, 2020, respectively.





NONACCRUALLOANS BY 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020TYPE:

Real estate $ 91,940 $ 67,450 $ 51,739 $ 64,060 $ 56,787 loans

Commercial 14,080 13,911 13,022 12,079 12,747 loans

Consumer 3,838 3,877 4,444 5,998 3,105 loans

Totalnonaccrual $ 109,858 $ 85,238 $ 69,205 $ 82,137 $ 72,639 loans



BREAKDOWN OFACCRUINGTROUBLED DEBT 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020RESTRUCTUREDLOANS:

Retail $ 6,319 $ 5,408 $ 5,451 $ 5,526 $ 5,014 buildings

Gas stations/ 210 219 224 1,789 1,675 car washes

Mixed-use 3,377 3,521 4,323 3,583 3,157 facilities

Warehouses 14,124 7,296 7,320 13,433 13,381

Other ^5 17,743 20,910 18,111 19,695 20,562

Total $ 41,773 $ 37,354 $ 35,429 $ 44,026 $ 43,789

^5 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:

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

30 - 59 days

$

18,175

$

11,347

$

5,962

$

18,857

$

37,866

60 - 89 days

8,314

16,826

58,065

29,975

2,605

Total

$

26,489

$

28,173

$

64,027

$

48,832

$

40,471

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

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Real estate loans

$

18,331

$

15,689

$

60,510

$

27,245

$

23,753

Commercial loans

1,002

3,393

624

5,987

4,583

Consumer loans

7,156

9,091

2,893

15,600

12,135

Total

$

26,489

$

28,173

$

64,027

$

48,832

$

40,471

CRITICIZED LOANS:

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Special mention

$

280,974

$

184,941

$

153,388

$

127,149

$

122,279

Substandard

379,048

366,556

311,902

299,357

278,771

Doubtful/Loss

-

1

6,640

11

12

Total criticized loans

$

660,022

$

551,498

$

471,930

$

426,517

$

401,062

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

ACCRUINGDELINQUENTLOANS 30-89 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020DAYS PASTDUE:

30 - 59 $ 18,175 $ 11,347 $ 5,962 $ 18,857 $ 37,866 days

60 - 89 8,314 16,826 58,065 29,975 2,605 days

Total $ 26,489 $ 28,173 $ 64,027 $ 48,832 $ 40,471





ACCRUINGDELINQUENTLOANS 30-89 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020DAYS PASTDUE BYTYPE:

Real estate $ 18,331 $ 15,689 $ 60,510 $ 27,245 $ 23,753 loans

Commercial 1,002 3,393 624 5,987 4,583 loans

Consumer 7,156 9,091 2,893 15,600 12,135 loans

Total $ 26,489 $ 28,173 $ 64,027 $ 48,832 $ 40,471





CRITICIZED 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020LOANS:

Special $ 280,974 $ 184,941 $ 153,388 $ 127,149 $ 122,279 mention

Substandard 379,048 366,556 311,902 299,357 278,771

Doubtful/ - 1 6,640 11 12 Loss

Totalcriticized $ 660,022 $ 551,498 $ 471,930 $ 426,517 $ 401,062 loans

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

Three Months Ended

3/31/2021

12/31/2020

3/31/2020

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Average stockholders' equity

$

2,047,506

$

2,045,959

$

2,027,595

Less: Goodwill and core deposit intangible assets, net

(473,961

)

(474,467

)

(476,053

)

Average tangible common equity

$

1,573,545

$

1,571,492

$

1,551,542

Net income

$

43,687

$

28,319

$

25,953

Return on average tangible common equity (annualized)

11.11

%

7.21

%

6.69

%

Three Months Ended

3/31/2021

12/31/2020

3/31/2020

TANGIBLE COMMON EQUITY

Total stockholders' equity

$

2,045,581

$

2,053,745

$

2,018,088

Less: Goodwill and core deposit intangible assets, net

(473,648

)

(474,158

)

(475,752

)

Tangible common equity

$

1,571,933

$

1,579,587

$

1,542,336

Total assets

$

17,198,860

$

17,106,664

$

16,021,434

Less: Goodwill and core deposit intangible assets, net

(473,648

)

(474,158

)

(475,752

)

Tangible assets

$

16,725,212

$

16,632,506

$

15,545,682

Common shares outstanding

123,480,494

123,264,864

123,169,404

Tangible common equity to tangible assets

9.40

%

9.50

%

9.92

%

Tangible common equity per share

$

12.73

$

12.81

$

12.52

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 theCompany's and the Bank's financial performance and in response to marketparticipant interest. A reconciliation of the GAAP to non-GAAP financialmeasures utilized by management is provided below.



Three Months Ended

3/31/2021 12/31/2020 3/31/2020

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Average stockholders' equity $ 2,047,506 $ 2,045,959 $ 2,027,595

Less: Goodwill and coredeposit intangible assets, (473,961 ) (474,467 ) (476,053 )net

Average tangible common $ 1,573,545 $ 1,571,492 $ 1,551,542 equity



Net income $ 43,687 $ 28,319 $ 25,953

Return on average tangible 11.11 % 7.21 % 6.69 %common equity (annualized)



Three Months Ended

3/31/2021 12/31/2020 3/31/2020

TANGIBLE COMMON EQUITY

Total stockholders' equity $ 2,045,581 $ 2,053,745 $ 2,018,088

Less: Goodwill and coredeposit intangible assets, (473,648 ) (474,158 ) (475,752 )net

Tangible common equity $ 1,571,933 $ 1,579,587 $ 1,542,336



Total assets $ 17,198,860 $ 17,106,664 $ 16,021,434

Less: Goodwill and coredeposit intangible assets, (473,648 ) (474,158 ) (475,752 )net

Tangible assets $ 16,725,212 $ 16,632,506 $ 15,545,682



Common shares outstanding 123,480,494 123,264,864 123,169,404



Tangible common equity to 9.40 % 9.50 % 9.92 %tangible assets

Tangible common equity per $ 12.73 $ 12.81 $ 12.52 share

Three Months Ended

3/31/2021

12/31/2020

3/31/2020

PRE-TAX PRE-PROVISION INCOME

Net income

$

43,687

$

28,319

$

25,953

Add back - tax provision

13,965

5,289

6,462

Add back - provision for credit losses

3,300

27,500

28,000

Pre-tax pre-provision income

$

60,952

$

61,108

$

60,415

View source version on businesswire.com: https://www.businesswire.com/news/home/20210427006118/en/

CONTACT: Alex Ko Senior 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