Business Wire | Oct 25, 2021 04:30PM EDT

Hope Bancorp Reports 2021 Third Quarter Financial Results

Oct. 25, 2021

LOS ANGELES--(BUSINESS WIRE)--Oct. 25, 2021--Hope Bancorp, Inc. (the "Company") (NASDAQ: HOPE), the holding company of Bank of Hope (the "Bank"), today reported unaudited financial results for its third quarter and nine months ended September 30, 2021.

For the three months ended September 30, 2021, net income increased 3% to $55.5 million, or $0.45 per diluted common share, from $53.8 million, or $0.43 per diluted common share, in the preceding second quarter and increased 82% from $30.5 million, or $0.25 per diluted common share, in the year-ago third quarter.

"We continued to deliver improved operational performance and profitability in the third quarter of 2021, but more importantly, we took strategic actions to de-risk the loan portfolio which led to significant improvements in asset quality and positioned the Company for a return to organic loan growth in the quarters ahead," said Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc. "Business development was the strongest it has ever been topping a record $1.0 billion in new loan production and included record high SBA origination volumes of $115.0 million. While SBA PPP loan forgiveness and strategic loan sales of higher-risk credits mitigated loan growth again this quarter, we believe these headwinds are now largely behind us and have renewed our focus on growth and expansion. Deposits at quarter-end totaled a record high $15.1 billion driven primarily by growth in noninterest bearing demand deposits, which led to an eighth consecutive quarter of declining deposit costs. Benefiting from the strategic actions taken during the quarter, we posted meaningful improvements in our credit quality with nonaccrual loans decreasing 51% and criticized assets declining 19% quarter-over-quarter.

"With the significant improvements in asset quality this quarter, together with our track record of robust loan production and positive core deposit growth, we believe we are well positioned to drive even stronger performance in the years ahead," said Kim.

Q3 2021 Highlights

* Loan originations increased 13% quarter-over-quarter to a record high $1.01 billion from $894.1 million in the second quarter of 2021. * Loans receivable remained at $13.42 billion, as record originations were offset by loan sales, SBA PPP loan forgiveness, other payoffs and pay downs and decreases in mortgage warehouse line utilizations. * Excluding SBA PPP loan forgiveness and strategic loan sales and transfers to held-for-sale of potentially problematic loans, loans receivable would have increased 3% quarter-over-quarter or 12% on an annualized basis. * Noninterest bearing demand deposits increased 7% quarter-over-quarter and accounted for a record 40% of total deposits, contributing to record high deposits of $15.06 billion. * Cost of interest bearing deposits decreased 6 basis points and total cost of deposits decreased 4 basis points quarter-over-quarter marking the eighth consecutive quarter of declining deposit costs. * Interest income increased 2% quarter-over-quarter while interest expense declined 8%, resulting in a 3% increase in pre-provision net interest income. * Net interest margin declined 4 basis points quarter-over-quarter, as the benefit of lower cost of deposits was more than offset by the impact of excess liquidity on the balance sheet. * The Company recorded a negative provision for credit losses of $10.0 million. * Net income increased 3% quarter-over-quarter and totaled $55.5 million, or $0.45 per diluted common share. * Pre-provision net revenue(1) ("PPNR") increased 1% quarter-over-quarter and totaled $65.4 million. * Net charge offs of $42.7 million reflects strategic actions to eliminate potentially problematic assets and resulted in significantly improved asset quality metrics. * Nonaccrual loans decreased 51% quarter-over-quarter and total criticized loans decreased 19%. * Return on average assets remained unchanged at 1.25%, while return on average equity increased to 10.61% from 10.41% in the second quarter of 2021. * Announced new $50 million share buyback program on July 26, 2021 and repurchased 3,487,426 shares as of September 30, 2021, totaling $47.2 million.

^ PPNR is a non-GAAP financial measures, a reconciliation of which is(1) provided in the accompanying financial information on Table Page 10.

Financial Highlights

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

9/30/2021 6/30/2021 9/30/2020

Net income $ 55,499 $ 53,763 $ 30,490

Diluted earnings per share $ 0.45 $ 0.43 $ 0.25

Net interest income beforeprovision (credit) for credit $ 130,296 $ 126,577 $ 117,637 losses

Net interest margin 3.07 % 3.11 % 2.91 %

Noninterest income $ 10,617 $ 11,076 $ 17,513

Noninterest expense $ 75,502 $ 73,123 $ 73,406

Net loans receivable $ 13,281,917 $ 13,234,849 $ 12,940,376

Deposits $ 15,062,527 $ 14,726,230 $ 14,008,356

Total cost of deposits 0.26 % 0.30 % 0.64 %

Nonaccrual loans^(1) $ 54,380 $ 111,008 $ 69,205

Nonperforming loans to loans 0.73 % 1.24 % 0.81 %receivable^(1)

ACL to loans receivable 1.02 % 1.41 % 1.37 %

ACL to nonaccrual loans^(1) 251.52 % 170.67 % 259.88 %

ACL to nonperforming assets^ 120.33 % 103.11 % 144.36 %(1)

Provision (credit) for credit $ (10,000 ) $ (7,000 ) $ 22,000 losses

Net charge offs $ 42,678 $ 11,491 $ 3,922

Return on average assets 1.25 % 1.25 % 0.72 %("ROA")

Return on average equity 10.61 % 10.41 % 5.98 %("ROE")

Return on average tangible 13.71 % 13.50 % 7.80 %common equity ("ROTCE")^(2)

Noninterest expense / average 1.70 % 1.70 % 1.73 %assets

Efficiency ratio 53.58 % 53.12 % 54.31 %

(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 10.

Operating Results for the 2021 Third Quarter

Net interest income before the provision (credit) for credit losses for the 2021 third quarter increased 3% to $130.3 million from $126.6 million in the 2021 second quarter and increased 11% from $117.6 million in the 2020 third quarter. The Company attributed the increase to higher interest income on investment securities and loans, as well as lower interest expense on deposits.

The net interest margin for the 2021 third quarter decreased 4 basis points to 3.07% from 3.11% in the preceding 2021 second quarter. The Company noted that excess liquidity on the balance sheet adversely impacted net interest margin by 8 basis points, which more than offset the benefits of lower deposit costs. The net interest margin in the prior-year third quarter was 2.91%.

The weighted average yield on loans for the 2021 third quarter was relatively stable quarter-over-quarter, decreasing 1 basis point to 3.97% from 3.98% in the 2021 second quarter, but declined by 23 basis points from 4.20% in the year-ago third quarter.

The weighted average cost of deposits for the 2021 third quarter decreased for the eighth consecutive quarter to 0.26%, representing a 4 basis point decrease from 0.30% for the 2021 second quarter and a 38 basis point decrease from 0.64% for the 2020 third quarter. The Company attributed the 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 0.42%, 0.48% and 0.92% for the quarters ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively.

Noninterest income for the 2021 third quarter decreased to $10.6 million from $11.1 million for the 2021 second quarter. During the 2021 third quarter, the Company sold $40.2 million in retail mortgage loans and $31.3 million of the guaranteed portion of SBA 7(a) loans, compared with $42.6 million and $30.0 million, respectively, in the preceding second quarter. Noninterest income in the year-ago third quarter totaled $17.5 million, during which quarter the Company recognized $7.5 million in net gains on sales of securities available for sale.

Noninterest expense for the 2021 third quarter increased to $75.5 million from $73.1 million in the preceding second quarter and $73.4 million in the year-ago third quarter.

Salaries and employee benefits expense for the 2021 third quarter increased to $47.0 million from $42.3 million in the preceding second quarter, reflecting a number of factors. The Company increased its bonus reserve for the year to reflect the higher-than-expected financial performance. In addition, employee base salaries increased meaningfully quarter-over-quarter, predominantly reflecting new frontline hires, including a new multi-family lending team recruited from a large money center bank, as well as wage increases necessary to retain existing employees. The Company's self-funded group insurance expense for the 2021 third quarter was also significantly higher quarter-over-quarter.

In addition, credit related expenses for the 2021 third quarter increased by $1.2 million quarter-over-quarter, but this fluctuation was within normal levels. Altogether, these increases in noninterest expense were partially offset by a $2.0 million quarter-over-quarter decrease in professional fees for the three months ended September 30, 2021, reflecting a favorable outcome and closure of a litigation case.

The Company's efficiency ratio for the 2021 third quarter was fairly stable at 53.58%, compared with 53.12% for the preceding second quarter and 54.31% for the year-ago third quarter. Noninterest expense as a percentage of average assets remained at 1.70% for the 2021 third quarter but improved from 1.73% in the year-ago third quarter.

The effective tax rate for the 2021 third quarter increased to 26.4% from 24.8% in the preceding quarter. The quarter-over-quarter increase reflects an increase in the Company's projected annual pretax income compared with previous estimates, combined with the benefit of affordable housing partnership investment tax credits having a smaller effect on the larger annual pretax income. In the year-ago quarter, the effective tax rate was 23.3%.

Balance Sheet Summary

New loan originations funded during the 2021 third quarter increased to a record high $1.01 billion from $894.1 million in the preceding second quarter and $782.4 million in the 2020 third quarter. Following are the components of new loan production for the quarters ended September 30, 2021, June 30, 2021 and September 30, 2020:

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

Return on average tangible common equity is a non-GAAP financial measure. A^ reconciliation of the Company's return on average tangible(2) common equity is provided in the accompanying financial information on Table Page 10.

Operating Results for the 2021 Third Quarter

Net interest income before the provision (credit) for credit losses for the 2021 third quarter increased 3% to $130.3 million from $126.6 million in the 2021 second quarter and increased 11% from $117.6 million in the 2020 third quarter. The Company attributed the increase to higher interest income on investment securities and loans, as well as lower interest expense on deposits.

The net interest margin for the 2021 third quarter decreased 4 basis points to 3.07% from 3.11% in the preceding 2021 second quarter. The Company noted that excess liquidity on the balance sheet adversely impacted net interest margin by 8 basis points, which more than offset the benefits of lower deposit costs. The net interest margin in the prior-year third quarter was 2.91%.

The weighted average yield on loans for the 2021 third quarter was relatively stable quarter-over-quarter, decreasing 1 basis point to 3.97% from 3.98% in the 2021 second quarter, but declined by 23 basis points from 4.20% in the year-ago third quarter.

The weighted average cost of deposits for the 2021 third quarter decreased for the eighth consecutive quarter to 0.26%, representing a 4 basis point decrease from 0.30% for the 2021 second quarter and a 38 basis point decrease from 0.64% for the 2020 third quarter. The Company attributed the 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 0.42%, 0.48% and 0.92% for the quarters ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively.

Noninterest income for the 2021 third quarter decreased to $10.6 million from $11.1 million for the 2021 second quarter. During the 2021 third quarter, the Company sold $40.2 million in retail mortgage loans and $31.3 million of the guaranteed portion of SBA 7(a) loans, compared with $42.6 million and $30.0 million, respectively, in the preceding second quarter. Noninterest income in the year-ago third quarter totaled $17.5 million, during which quarter the Company recognized $7.5 million in net gains on sales of securities available for sale.

Noninterest expense for the 2021 third quarter increased to $75.5 million from $73.1 million in the preceding second quarter and $73.4 million in the year-ago third quarter.

Salaries and employee benefits expense for the 2021 third quarter increased to $47.0 million from $42.3 million in the preceding second quarter, reflecting a number of factors. The Company increased its bonus reserve for the year to reflect the higher-than-expected financial performance. In addition, employee base salaries increased meaningfully quarter-over-quarter, predominantly reflecting new frontline hires, including a new multi-family lending team recruited from a large money center bank, as well as wage increases necessary to retain existing employees. The Company's self-funded group insurance expense for the 2021 third quarter was also significantly higher quarter-over-quarter.

In addition, credit related expenses for the 2021 third quarter increased by $1.2 million quarter-over-quarter, but this fluctuation was within normal levels. Altogether, these increases in noninterest expense were partially offset by a $2.0 million quarter-over-quarter decrease in professional fees for the three months ended September 30, 2021, reflecting a favorable outcome and closure of a litigation case.

The Company's efficiency ratio for the 2021 third quarter was fairly stable at 53.58%, compared with 53.12% for the preceding second quarter and 54.31% for the year-ago third quarter. Noninterest expense as a percentage of average assets remained at 1.70% for the 2021 third quarter but improved from 1.73% in the year-ago third quarter.

The effective tax rate for the 2021 third quarter increased to 26.4% from 24.8% in the preceding quarter. The quarter-over-quarter increase reflects an increase in the Company's projected annual pretax income compared with previous estimates, combined with the benefit of affordable housing partnership investment tax credits having a smaller effect on the larger annual pretax income. In the year-ago quarter, the effective tax rate was 23.3%.

Balance Sheet Summary

New loan originations funded during the 2021 third quarter increased to a record high $1.01 billion from $894.1 million in the preceding second quarter and $782.4 million in the 2020 third quarter. Following are the components of new loan production for the quarters ended September 30, 2021, June 30, 2021 and September 30, 2020:

(dollars in thousands) (unaudited) For the Three Months Ended

9/30/2021 6/30/2021 9/30/2020

Commercial real estate $ 488,969 $ 454,857 $ 215,099

Commercial 329,702 288,726 429,136

SBA 115,023 77,652 33,262

SBA PPP - 19,816 26

Residential mortgage 75,007 52,766 102,312

Consumer 500 275 2,607

Total new loan originations $ 1,009,201 $ 894,092 $ 782,442

During the 2021 third quarter, the Company also acquired $113.9 million of 30-year adjustable-rate residential mortgage loans. New loan production and loan purchases during the 2021 third quarter were offset by a number of factors. In addition to the sale of $40.2 million in residential mortgage loans and $31.3 million of SBA 7(a) loans during the 2021 third quarter, the Company completed loan sales of $29.6 million and transferred $131.2 million to loans held-for-sale, de-risking the loan portfolio of potentially problematic assets. Altogether with aggregate payoffs and pay downs, which included SBA PPP loan forgiveness of $235.6 million and a $61.4 million quarter-over-quarter decrease in warehouse line utilizations, loans receivable at September 30, 2021 was flat at $13.42 billion versus $13.42 billion at June 30, 2021. Excluding SBA PPP loan forgiveness and loan sales and transfers of potentially problematic assets to held-for-sale, loans receivable at September 30, 2021 would have increased by approximately $401.7 million, or 3.0% quarter-over-quarter. Loans receivable a year ago at September 30, 2020 totaled $13.12 billion.

During the 2021 third quarter, the Company deployed a portion of its excess cash balances and purchased $571.3 million of investment securities. Securities available for sale totaled $2.67 billion at September 30, 2021, up 17% from $2.27 billion at June 30, 2021.

Total deposits at September 30, 2021 increased 2% to $15.06 billion from $14.73 billion at June 30, 2021 and increased 8% from $14.01 billion at September 30, 2020. Quarter-over-quarter, noninterest bearing demand deposits as of September 30, 2021 increased 7% and money market and other interest bearing demand deposit balances increased 1%, while time deposits decreased 4%. On a year-over-year basis, noninterest bearing demand deposits as of September 30, 2021 increased 34% and money market and NOW account balances increased 23%, while time deposits decreased 35%.

Following is the deposit composition as of September 30, 2021, June 30, 2021 and September 30, 2020:

(dollars in % %thousands) 9/30/2021 6/30/2021 change 9/30/2020 change(unaudited)

Noninterestbearing $ 6,007,586 $ 5,638,115 7 % $ 4,488,529 34 %demanddeposits

Money market 5,871,567 5,786,697 1 % 4,763,893 23 %and other

Saving 314,603 308,651 2 % 308,943 2 %deposits

Time 2,868,771 2,992,767 (4 )% 4,446,991 (35 )%deposits

Totaldeposit $ 15,062,527 $ 14,726,230 2 % $ 14,008,356 8 %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 September 30, 2021, June 30, 2021 and September 30, 2020:

Deposit Breakdown Cost of Deposits

(unaudited) 9/30/ 6/30/ 9/30/ Q3 Q2 Q3 2021 2021 2020 2021 2021 2020

Noninterest bearing demand 39.9 % 38.3 % 32.1 % - % - % - %deposits

Money market and other 39.0 % 39.2 % 34.0 % 0.40 % 0.43 % 0.53 %

Saving deposits 2.1 % 2.1 % 2.2 % 1.18 % 1.15 % 1.19 %

Time deposits 19.0 % 20.4 % 31.7 % 0.38 % 0.49 % 1.30 %

Total deposit balances 100.0 % 100.0 % 100.0 % 0.26 % 0.30 % 0.64 %

Allowance for Credit Losses

In the 2021 third quarter, the Company recorded a negative provision for credit losses of $10.0 million, compared with a negative provision for credit losses of $7.0 million in the preceding second quarter. In the year-ago third quarter, the Company recorded a provision for credit losses of $22.0 million. The allowance release in the 2021 third quarter reflects improvements in macroeconomic forecasts and the Company's asset quality.

Following is the allowance for credit losses and allowance coverage ratios as of September 30, 2021, June 30, 2021 and September 30, 2020:

(dollars in thousands) (unaudited) 9/30/2021 6/30/2021 9/30/2020

Allowance for credit losses $ 136,774 $ 189,452 $ 179,849

Allowance for credit loss/loans receivable 1.02 % 1.41 % 1.37 %

Allowance for credit losses/nonperforming 138.92 % 113.36 % 169.40 %loans

Credit Quality

Following are the components of nonperforming assets as of September 30, 2021, June 30, 2021 and September 30, 2020:

(dollars in thousands) (unaudited) 9/30/2021 6/30/2021 9/30/2020

Loans on nonaccrual status ^(1) $ 54,380 $ 111,008 $ 69,205

Delinquent loans 90 days or more on 4,567 4,759 1,537 accrual status

Accruing troubled debt restructured loans 39,509 51,360 35,429

Total nonperforming loans 98,456 167,127 106,171

Other real estate owned 15,213 16,619 18,410

Total nonperforming assets $ 113,669 $ 183,746 $ 124,581

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $20.6 million, $23.6 million and $26.2 million, at September 30, 2021, June 30, 2021 and September 30, 2020, respectively.

The significant reductions in nonperforming loans quarter-over-quarter were due to a number of factors, including strategic loan sales and transfers to held-for sale of potentially problematic loans. The loans transferred to held-for-sale are expected to be sold during the fourth quarter of 2021. In addition, one large relationship that was moved to nonaccrual status in the first quarter of 2021 was charged off, and another large relationship on nonaccrual status was paid off in full.

Following are net charge offs and net charge offs to average loans receivable on an annualized basis for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020:

^ Excludes delinquent SBA loans that are guaranteed and currently in(1) liquidation totaling $20.6 million, $23.6 million and $26.2 million, at September 30, 2021, June 30, 2021 and September 30, 2020, respectively.

The significant reductions in nonperforming loans quarter-over-quarter were due to a number of factors, including strategic loan sales and transfers to held-for sale of potentially problematic loans. The loans transferred to held-for-sale are expected to be sold during the fourth quarter of 2021. In addition, one large relationship that was moved to nonaccrual status in the first quarter of 2021 was charged off, and another large relationship on nonaccrual status was paid off in full.

Following are net charge offs and net charge offs to average loans receivable on an annualized basis for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020:

(dollars in thousands) (unaudited) For the Three Months Ended

9/30/ 6/30/ 9/30/ 2021 2021 2020

Net charge offs $ 42,678 $ 11,491 $ 3,922

Net charge offs/average loans receivable 1.28 % 0.35 % 0.12 %(annualized)

Net charge offs for the 2021 third quarter increased significantly from prior periods. This reflects decisive actions by the Company to eliminate potentially problematic assets from its loan portfolio and included charge offs related to the one large relationship that was moved to nonaccrual status in the first quarter of 2021, along with loan sales and transfers to held-for-sale.

Following are the components of criticized loan balances as of September 30, 2021, June 30, 2021 and September 30, 2020:

(dollars in thousands) (unaudited) 9/30/2021 6/30/2021 9/30/2020

Special mention $ 306,766 $ 294,559 $ 153,388

Substandard 243,684 380,955 311,902

Doubtful/loss - - 6,640

Total criticized loans $ 550,450 $ 675,514 $ 471,930

The significant reductions in total criticized loans quarter-over-quarter was due primarily to the strategic loan sales and transfers to held-for-sale, along with charge offs. As previously noted, loan sales totaled $29.6 million and transfers to held-for-sale amounted to $131.2 million, most of which were classified as substandard.

Capital

At September 30, 2021, the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a "well-capitalized" financial institution. Following are capital ratios for the Company as of September 30, 2021, June 30, 2021 and September 30, 2020:

Minimum GuidelineHope Bancorp, Inc. 9/30/ 6/30/ 9/30/ for(unaudited) 2021 2021 2020 "Well-Capitalized" Bank

Common Equity Tier 1 11.01% 11.44% 11.36% 6.50%Capital

Tier 1 Leverage Ratio 9.98% 10.43% 10.02% 5.00%

Tier 1 Risk-Based Ratio 11.70% 12.14% 12.09% 8.00%

Total Risk-Based Ratio 12.42% 13.16% 13.19% 10.00%

Following are tangible common equity ("TCE") per share and TCE as a percentage of tangible assets as of September 30, 2021, June 30, 2021 and September 30, 2020:

(unaudited) 9/30/2021 6/30/2021 9/30/2020

Tangible common equity per share ^(1) $13.33 $13.10 $12.70

Tangible common equity to tangible assets ^ 9.24% 9.53% 9.63%(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.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Tuesday, October 26, 2021 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its third quarter ended September 30, 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 November 2, 2021, replay access code 10161142.

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 $17.80 billion in total assets as of September 30, 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.

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^ of tangible common equity over tangible assets. Tangible common equity to(2) 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.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Tuesday, October 26, 2021 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its third quarter ended September 30, 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 November 2, 2021, replay access code 10161142.

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 $17.80 billion in total assets as of September 30, 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: 9/30/2021 6/30/2021 % 9/30/2020 % change change

Cash and due $ 627,352 $ 836,957 (25 )% $ 629,133 - %from banks

Securitiesavailable for 2,669,489 2,274,170 17 % 2,060,991 30 %sale, at fairvalue

Federal HomeLoan Bank("FHLB") 88,102 94,550 (7 )% 97,305 (9 )stock and %otherinvestments

Loans heldfor sale, atthe lower of 179,117 54,245 230 % 9,170 1,853 %cost or fairvalue

Loans 13,418,691 13,424,301 - % 13,120,225 2 %receivable

Allowance for (136,774 ) (189,452 ) (28 )% (179,849 ) (24 )credit losses %

Net loans 13,281,917 13,234,849 - % 12,940,376 3 %receivable

Accrued )interest 47,102 51,886 (9 )% 57,989 (19 %receivable

Premises and )equipment, 45,307 45,302 - % 49,552 (9 %net

Bank owned )life 76,756 76,428 - % 77,388 (1 %insurance

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

Servicing 10,787 11,566 (7 )% 13,718 (21 )assets %

Other )intangible 8,180 8,689 (6 )% 10,239 (20 %assets, net

Other assets 300,467 316,535 (5 )% 323,456 (7 ) %

Total assets $ 17,799,026 $ 17,469,627 2 % $ 16,733,767 6 %



Liabilities:

Deposits $ 15,062,527 $ 14,726,230 2 % $ 14,008,356 8 %

FHLB advances 200,000 200,000 - % 200,000 - %

Convertible 215,974 215,739 - % 203,270 6 %notes, net

Subordinated 105,057 104,762 - % 103,889 1 %debentures

Accrued )interest 5,367 4,946 9 % 21,991 (76 %payable

Other 135,703 125,080 8 % 155,700 (13 )liabilities %

Total $ 15,724,628 $ 15,376,757 2 % $ 14,693,206 7 %liabilities



Stockholders' Equity:

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

Capital 1,420,151 1,418,135 - % 1,432,773 (1 )surplus %

Retained 897,766 859,548 4 % 774,970 16 %earnings

Treasurystock, at (247,198 ) (200,000 ) (24 )% (200,000 ) 24 %cost

Accumulatedother 3,543 15,051 (76 )% 32,682 (89 )comprehensive %gain, net

Totalstockholders' 2,074,398 2,092,870 (1 )% 2,040,561 2 %equity

Totalliabilitiesand $ 17,799,026 $ 17,469,627 2 % $ 16,733,767 6 %stockholders'equity



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

Common stockshares - 120,198,061 123,673,832 123,260,760 outstanding

Treasury 16,149,007 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

Nine Months Ended

9/30/2021

6/30/2021

% change

9/30/2020

% change

9/30/2021

9/30/2020

% change

Interest and fees on loans

$

132,794

$

131,823

1

%

$

134,430

(1)

%

$

394,353

$

422,850

(7)

%

Interest on securities

9,207

7,713

19

%

9,848

(7)

%

24,835

30,348

(18)

%

Interest on federal funds sold and other investments

865

668

29

%

942

(8)

%

2,175

3,951

(45)

%

Total interest income

142,866

140,204

2

%

145,220

(2)

%

421,363

457,149

(8)

%

Interest on deposits

9,640

10,696

(10)

%

22,871

(58)

%

33,106

93,435

(65)

%

Interest on other borrowings and convertible notes

2,930

2,931

-

%

4,712

(38)

%

8,805

16,972

(48)

%

Total interest expense

12,570

13,627

(8)

%

27,583

(54)

%

41,911

110,407

(62)

%

Net interest income before provision (credit) for credit losses

130,296

126,577

3

%

117,637

11

%

379,452

346,742

9

%

Provision (credit) for credit losses

(10,000)

(7,000)

43

%

22,000

N/A

(13,700)

67,500

N/A

Net interest income after provision (credit) for credit losses

140,296

133,577

5

%

95,637

47

%

393,152

279,242

41

%

Service fees on deposit accounts

1,814

1,777

2

%

2,736

(34)

%

5,381

9,452

(43)

%

International service fees

889

795

12

%

987

(10)

%

2,525

2,443

3

%

Loan servicing fees, net

642

934

(31)

%

772

(17)

%

2,620

2,243

17

%

Wire transfer fees

836

923

(9)

%

892

(6)

%

2,603

2,710

(4)

%

Net gains on sales of SBA loans

2,459

2,375

4

%

-

100

%

4,834

-

100

%

Net gains on sales of residential mortgage loans

781

1,028

(24)

%

2,853

(73)

%

3,905

6,386

(39)

%

Net gains on sales of securities available for sale

-

-

-

%

7,531

(100)

%

-

7,531

(100)

%

Other income and fees

3,196

3,244

(1)

%

1,742

83

%

8,629

11,252

(23)

%

Total noninterest income

10,617

11,076

(4)

%

17,513

(39)

%

30,497

42,017

(27)

%

Salaries and employee benefits

47,018

42,309

11

%

40,659

16

%

130,543

122,011

7

%

Occupancy

7,473

7,067

6

%

7,264

3

%

21,507

21,717

(1)

%

Furniture and equipment

4,429

4,822

(8)

%

4,513

(2)

%

13,437

13,426

-

%

Advertising and marketing

2,656

2,097

27

%

1,601

66

%

6,378

4,589

39

%

Data processing and communications

2,394

2,411

(1)

%

2,204

9

%

7,542

7,109

6

%

Professional fees

2,431

4,395

(45)

%

1,513

61

%

9,729

6,323

54

%

FDIC assessment

1,204

1,284

(6)

%

1,167

3

%

3,743

4,378

(15)

%

Credit related expenses

1,266

43

2,844

%

1,793

(29)

%

3,527

4,816

(27)

%

OREO expense, net

248

298

(17)

%

1,770

(86)

%

827

3,951

(79)

%

Software impairment

-

2,146

(100)

%

-

-

%

2,146

-

100

%

FHLB advance prepayment fee

-

-

-

%

3,584

(100)

%

-

3,584

(100)

%

Other

6,383

6,251

2

%

7,338

(13)

%

19,677

20,672

(5)

%

Total noninterest expense

75,502

73,123

3

%

73,406

3

%

219,056

212,576

3

%

Income before income taxes

75,411

71,530

5

%

39,744

90

%

204,593

108,683

88

%

Income tax provision

19,912

17,767

12

%

9,254

115

%

51,644

25,487

103

%

Net income

$

55,499

$

53,763

3

%

$

30,490

82

%

$

152,949

$

83,196

84

%

Earnings Per Common Share - Basic

$

0.45

$

0.44

$

0.25

$

1.24

$

0.67

Earnings Per Common Share - Diluted

$

0.45

$

0.43

$

0.25

$

1.23

$

0.67

Weighted Average Shares Outstanding - Basic

122,244,948

123,592,695

123,251,336

123,050,174

123,581,055

Weighted Average Shares Outstanding - Diluted

122,908,536

124,323,888

123,536,765

123,848,512

123,895,084

Hope Bancorp, Inc.

Selected Financial Data

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

Three Months Ended Nine Months Ended

9/30/2021 6/30/2021 % 9/30/2020 % 9/30/2021 9/30/2020 % change change change



Interest and $ 132,794 $ 131,823 1 % $ 134,430 (1) % $ 394,353 $ 422,850 (7) %fees on loans

Interest on 9,207 7,713 19 % 9,848 (7) % 24,835 30,348 (18) %securities

Interest onfederal funds 865 668 29 % 942 (8) % 2,175 3,951 (45) %sold and otherinvestments

Total interest 142,866 140,204 2 % 145,220 (2) % 421,363 457,149 (8) %income



Interest on 9,640 10,696 (10) % 22,871 (58) % 33,106 93,435 (65) %deposits

Interest onotherborrowings and 2,930 2,931 - % 4,712 (38) % 8,805 16,972 (48) %convertiblenotes

Total interest 12,570 13,627 (8) % 27,583 (54) % 41,911 110,407 (62) %expense



Net interestincome beforeprovision 130,296 126,577 3 % 117,637 11 % 379,452 346,742 9 %(credit) forcredit losses

Provision(credit) for (10,000) (7,000) 43 % 22,000 N/A (13,700) 67,500 N/Acredit losses

Net interestincome afterprovision 140,296 133,577 5 % 95,637 47 % 393,152 279,242 41 %(credit) forcredit losses



Service feeson deposit 1,814 1,777 2 % 2,736 (34) % 5,381 9,452 (43) %accounts

International 889 795 12 % 987 (10) % 2,525 2,443 3 %service fees

Loan servicing 642 934 (31) % 772 (17) % 2,620 2,243 17 %fees, net

Wire transfer 836 923 (9) % 892 (6) % 2,603 2,710 (4) %fees

Net gains onsales of SBA 2,459 2,375 4 % - 100 % 4,834 - 100 %loans

Net gains onsales of 781 1,028 (24) % 2,853 (73) % 3,905 6,386 (39) %residentialmortgage loans

Net gains onsales ofsecurities - - - % 7,531 (100) % - 7,531 (100) %available forsale

Other income 3,196 3,244 (1) % 1,742 83 % 8,629 11,252 (23) %and fees

Totalnoninterest 10,617 11,076 (4) % 17,513 (39) % 30,497 42,017 (27) %income



Salaries andemployee 47,018 42,309 11 % 40,659 16 % 130,543 122,011 7 %benefits

Occupancy 7,473 7,067 6 % 7,264 3 % 21,507 21,717 (1) %

Furniture and 4,429 4,822 (8) % 4,513 (2) % 13,437 13,426 - %equipment

Advertising 2,656 2,097 27 % 1,601 66 % 6,378 4,589 39 %and marketing

Dataprocessing and 2,394 2,411 (1) % 2,204 9 % 7,542 7,109 6 %communications

Professional 2,431 4,395 (45) % 1,513 61 % 9,729 6,323 54 %fees

FDIC 1,204 1,284 (6) % 1,167 3 % 3,743 4,378 (15) %assessment

Credit related 1,266 43 2,844 % 1,793 (29) % 3,527 4,816 (27) %expenses

OREO expense, 248 298 (17) % 1,770 (86) % 827 3,951 (79) %net

Software - 2,146 (100) % - - % 2,146 - 100 %impairment

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

Other 6,383 6,251 2 % 7,338 (13) % 19,677 20,672 (5) %

Totalnoninterest 75,502 73,123 3 % 73,406 3 % 219,056 212,576 3 %expense

Income before 75,411 71,530 5 % 39,744 90 % 204,593 108,683 88 %income taxes

Income tax 19,912 17,767 12 % 9,254 115 % 51,644 25,487 103 %provision

Net income $ 55,499 $ 53,763 3 % $ 30,490 82 % $ 152,949 $ 83,196 84 %



Earnings PerCommon Share - $ 0.45 $ 0.44 $ 0.25 $ 1.24 $ 0.67 Basic

Earnings PerCommon Share - $ 0.45 $ 0.43 $ 0.25 $ 1.23 $ 0.67 Diluted



WeightedAverage Shares 122,244,948 123,592,695 123,251,336 123,050,174 123,581,055 Outstanding -Basic

WeightedAverage Shares 122,908,536 124,323,888 123,536,765 123,848,512 123,895,084 Outstanding -Diluted

Hope Bancorp, Inc.

Selected Financial Data

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

For the Three Months Ended (Annualized)

For the Nine Months Ended (Annualized)

Profitability measures:

9/30/2021

6/30/2021

9/30/2020

9/30/2021

9/30/2020

ROA

1.25

%

1.25

%

0.72

%

1.18

%

0.68

%

ROE

10.61

%

10.41

%

5.98

%

9.86

%

5.47

%

ROTCE (1)

13.71

%

13.50

%

7.80

%

12.78

%

7.14

%

Net interest margin

3.07

%

3.11

%

2.91

%

3.08

%

2.99

%

Efficiency ratio

53.58

%

53.12

%

54.31

%

53.43

%

54.68

%

Noninterest expense / average assets

1.70

%

1.70

%

1.73

%

1.68

%

1.73

%

Hope Bancorp, Inc.

Selected Financial Data

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

For the Three Months Ended For the Nine Months (Annualized) Ended (Annualized)

Profitability measures: 9/30/ 6/30/ 9/30/ 9/30/ 9/30/ 2021 2021 2020 2021 2020

ROA 1.25 % 1.25 % 0.72 % 1.18 % 0.68 %

ROE 10.61 % 10.41 % 5.98 % 9.86 % 5.47 %

ROTCE ^(1) 13.71 % 13.50 % 7.80 % 12.78 % 7.14 %

Net interest margin 3.07 % 3.11 % 2.91 % 3.08 % 2.99 %

Efficiency ratio 53.58 % 53.12 % 54.31 % 53.43 % 54.68 %

Noninterest expense / 1.70 % 1.70 % 1.73 % 1.68 % 1.73 %average assets

(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.

Average tangible equity is calculated by subtracting average goodwill and^ average core deposit intangible assets from average stockholders' equity. This(1) 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

Nine Months Ended

Pre-tax acquisition accounting adjustments:

9/30/2021

6/30/2021

9/30/2020

9/30/2021

9/30/2020

Accretion on acquired non-impaired loans

$

368

$

366

$

747

$

1,439

$

2,464

Accretion on acquired credit deteriorated/purchased credit impaired loans

2,093

2,188

4,584

6,536

17,079

Amortization of premium on low income housing tax credits

(73

)

(74

)

(71

)

(220

)

(212

)

Accretion of discount on acquired subordinated debt

(295

)

(293

)

(287

)

(879

)

(854

)

Amortization of core deposit intangibles

(509

)

(510

)

(531

)

(1,528

)

(1,594

)

Total acquisition accounting adjustments

$

1,584

$

1,677

$

4,442

$

5,348

$

16,883

Three Months Ended Nine Months Ended

Pre-tax acquisitionaccounting 9/30/2021 6/30/2021 9/30/2020 9/30/2021 9/30/2020adjustments:

Accretion onacquired $ 368 $ 366 $ 747 $ 1,439 $ 2,464 non-impaired loans

Accretion onacquired creditdeteriorated/ 2,093 2,188 4,584 6,536 17,079 purchased creditimpaired loans

Amortization ofpremium on low (73 ) (74 ) (71 ) (220 ) (212 )income housing taxcredits

Accretion ofdiscount on acquired (295 ) (293 ) (287 ) (879 ) (854 )subordinated debt

Amortization of core (509 ) (510 ) (531 ) (1,528 ) (1,594 )deposit intangibles

Total acquisitionaccounting $ 1,584 $ 1,677 $ 4,442 $ 5,348 $ 16,883 adjustments

Hope Bancorp, Inc.

Selected Financial Data

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

Three Months Ended

9/30/2021

6/30/2021

9/30/2020

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

$

13,286,382

$

132,794

3.97

%

$

13,293,591

$

131,823

3.98

%

$

12,728,558

$

134,430

4.20

%

Securities available for sale

2,370,672

9,207

1.54

%

2,253,135

7,713

1.37

%

2,010,907

9,848

1.95

%

FHLB stock and other investments

1,197,537

865

0.29

%

759,182

668

0.35

%

1,342,641

942

0.28

%

Total interest earning assets

$

16,854,591

$

142,866

3.36

%

$

16,305,908

$

140,204

3.45

%

$

16,082,106

$

145,220

3.59

%

INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest bearing

$

5,919,225

$

5,946

0.40

%

$

5,484,047

$

5,909

0.43

%

$

4,895,101

$

6,546

0.53

%

Savings

310,525

920

1.18

%

308,530

887

1.15

%

302,882

907

1.19

%

Time deposits

2,914,977

2,774

0.38

%

3,222,457

3,900

0.49

%

4,703,640

15,418

1.30

%

Total interest bearing deposits

9,144,727

9,640

0.42

%

9,015,034

10,696

0.48

%

9,901,623

22,871

0.92

%

FHLB advances

200,000

640

1.27

%

202,198

631

1.25

%

353,587

1,323

1.49

%

Convertible notes, net

215,840

1,321

2.39

%

215,599

1,323

2.43

%

202,470

2,370

4.58

%

Subordinated debentures

100,993

969

3.75

%

100,701

977

3.84

%

99,819

1,019

3.99

%

Total interest bearing liabilities

$

9,661,560

$

12,570

0.52

%

$

9,533,532

$

13,627

0.57

%

$

10,557,499

$

27,583

1.04

%

Noninterest bearing demand deposits

5,848,983

5,445,457

4,239,108

Total funding liabilities/cost of funds

$

15,510,543

0.32

%

$

14,978,989

0.36

%

$

14,796,607

0.74

%

Net interest income/net interest spread

$

130,296

2.84

%

$

126,577

2.88

%

$

117,637

2.55

%

Net interest margin

3.07

%

3.11

%

2.91

%

Cost of deposits:

Noninterest bearing demand deposits

$

5,848,983

$

-

-

%

$

5,445,457

$

-

-

%

$

4,239,108

$

-

-

%

Interest bearing deposits

9,144,727

9,640

0.42

%

9,015,034

10,696

0.48

%

9,901,623

22,871

0.92

%

Total deposits

$

14,993,710

$

9,640

0.26

%

$

14,460,491

$

10,696

0.30

%

$

14,140,731

$

22,871

0.64

%

Hope Bancorp, Inc.

Selected Financial Data

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

Three Months Ended

9/30/2021 6/30/2021 9/30/2020

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 $ 13,286,382 $ 132,794 3.97 % $ 13,293,591 $ 131,823 3.98 % $ 12,728,558 $ 134,430 4.20 %sale

Securitiesavailable for 2,370,672 9,207 1.54 % 2,253,135 7,713 1.37 % 2,010,907 9,848 1.95 %sale

FHLB stock andother 1,197,537 865 0.29 % 759,182 668 0.35 % 1,342,641 942 0.28 %investments

Total interest $ 16,854,591 $ 142,866 3.36 % $ 16,305,908 $ 140,204 3.45 % $ 16,082,106 $ 145,220 3.59 %earning assets



INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest $ 5,919,225 $ 5,946 0.40 % $ 5,484,047 $ 5,909 0.43 % $ 4,895,101 $ 6,546 0.53 %bearing

Savings 310,525 920 1.18 % 308,530 887 1.15 % 302,882 907 1.19 %

Time deposits 2,914,977 2,774 0.38 % 3,222,457 3,900 0.49 % 4,703,640 15,418 1.30 %

Total interest 9,144,727 9,640 0.42 % 9,015,034 10,696 0.48 % 9,901,623 22,871 0.92 %bearing deposits

FHLB advances 200,000 640 1.27 % 202,198 631 1.25 % 353,587 1,323 1.49 %

Convertible 215,840 1,321 2.39 % 215,599 1,323 2.43 % 202,470 2,370 4.58 %notes, net

Subordinated 100,993 969 3.75 % 100,701 977 3.84 % 99,819 1,019 3.99 %debentures

Total interestbearing $ 9,661,560 $ 12,570 0.52 % $ 9,533,532 $ 13,627 0.57 % $ 10,557,499 $ 27,583 1.04 %liabilities

Noninterestbearing demand 5,848,983 5,445,457 4,239,108 deposits

Total fundingliabilities/cost $ 15,510,543 0.32 % $ 14,978,989 0.36 % $ 14,796,607 0.74 %of funds

Net interestincome/net $ 130,296 2.84 % $ 126,577 2.88 % $ 117,637 2.55 %interest spread

Net interest 3.07 % 3.11 % 2.91 %margin



Cost of deposits:

Noninterestbearing demand $ 5,848,983 $ - - % $ 5,445,457 $ - - % $ 4,239,108 $ - - %deposits

Interest bearing 9,144,727 9,640 0.42 % 9,015,034 10,696 0.48 % 9,901,623 22,871 0.92 %deposits

Total deposits $ 14,993,710 $ 9,640 0.26 % $ 14,460,491 $ 10,696 0.30 % $ 14,140,731 $ 22,871 0.64 %

Nine Months Ended

9/30/2021

9/30/2020

Interest

Annualized

Interest

Annualized

Average

Income/

Average

Average

Income/

Average

Balance

Expense

Yield/Cost

Balance

Expense

Yield/Cost

INTEREST EARNING ASSETS:

Loans, including loans held for sale

$

13,308,526

$

394,353

3.96

%

$

12,581,703

$

422,850

4.49

%

Securities available for sale

2,297,450

24,835

1.45

%

1,825,046

30,348

2.22

%

FHLB stock and other investments

867,745

2,175

0.34

%

1,060,699

3,951

0.50

%

Total interest earning assets

$

16,473,721

$

421,363

3.42

%

$

15,467,448

$

457,149

3.95

%

INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest bearing

$

5,555,711

$

17,345

0.42

%

$

4,668,594

$

28,988

0.83

%

Savings

306,780

2,678

1.17

%

287,060

2,578

1.20

%

Time deposits

3,298,393

13,083

0.53

%

4,852,286

61,869

1.70

%

Total interest bearing deposits

9,160,884

33,106

0.48

%

9,807,940

93,435

1.27

%

FHLB advances

205,971

1,913

1.24

%

513,376

6,208

1.62

%

Convertible notes, net

215,483

3,967

2.43

%

201,204

7,074

4.62

%

Subordinated debentures

100,697

2,925

3.83

%

99,536

3,690

4.87

%

Total interest bearing liabilities

$

9,683,035

$

41,911

0.58

%

$

10,622,056

$

110,407

1.39

%

Noninterest bearing demand deposits

5,451,908

3,573,448

Total funding liabilities/cost of funds

$

15,134,943

0.37

%

$

14,195,504

1.04

%

Net interest income/net interest spread

$

379,452

2.84

%

$

346,742

2.56

%

Net interest margin

3.08

%

2.99

%

Cost of deposits:

Noninterest bearing demand deposits

$

5,451,908

$

-

-

%

$

3,573,448

$

-

-

%

Interest bearing deposits

9,160,884

33,106

0.48

%

9,807,940

93,435

1.27

%

Total deposits

$

14,612,792

$

33,106

0.30

%

$

13,381,388

$

93,435

0.93

%



Nine Months Ended

9/30/2021 9/30/2020

Interest Annualized Interest Annualized

Average Income/ Average Average Income/ Average

Balance Expense Yield/Cost Balance Expense Yield/Cost

INTERESTEARNING ASSETS:

Loans,including $ 13,308,526 $ 394,353 3.96 % $ 12,581,703 $ 422,850 4.49 %loans heldfor sale

Securitiesavailable 2,297,450 24,835 1.45 % 1,825,046 30,348 2.22 %for sale

FHLB stockand other 867,745 2,175 0.34 % 1,060,699 3,951 0.50 %investments

Totalinterest $ 16,473,721 $ 421,363 3.42 % $ 15,467,448 $ 457,149 3.95 %earningassets



INTERESTBEARING LIABILITIES:

Deposits:

Demand,interest $ 5,555,711 $ 17,345 0.42 % $ 4,668,594 $ 28,988 0.83 %bearing

Savings 306,780 2,678 1.17 % 287,060 2,578 1.20 %

Time 3,298,393 13,083 0.53 % 4,852,286 61,869 1.70 %deposits

Totalinterest 9,160,884 33,106 0.48 % 9,807,940 93,435 1.27 %bearingdeposits

FHLB 205,971 1,913 1.24 % 513,376 6,208 1.62 %advances

Convertible 215,483 3,967 2.43 % 201,204 7,074 4.62 %notes, net

Subordinated 100,697 2,925 3.83 % 99,536 3,690 4.87 %debentures

Totalinterest $ 9,683,035 $ 41,911 0.58 % $ 10,622,056 $ 110,407 1.39 %bearingliabilities

Noninterestbearing 5,451,908 3,573,448 demanddeposits

Totalfundingliabilities/ $ 15,134,943 0.37 % $ 14,195,504 1.04 %cost offunds

Net interestincome/net $ 379,452 2.84 % $ 346,742 2.56 %interestspread

Net interest 3.08 % 2.99 %margin



Cost of deposits:

Noninterestbearing $ 5,451,908 $ - - % $ 3,573,448 $ - - %demanddeposits

Interestbearing 9,160,884 33,106 0.48 % 9,807,940 93,435 1.27 %deposits

Total $ 14,612,792 $ 33,106 0.30 % $ 13,381,388 $ 93,435 0.93 %deposits

Hope Bancorp, Inc.

Selected Financial Data

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

Three Months Ended

Nine Months Ended

AVERAGE BALANCES:

9/30/2021

6/30/2021

% change

9/30/2020

% change

9/30/2021

9/30/2020

% change

Loans receivable, including loans held for sale

$

13,286,382

$

13,293,591

-

%

$

12,728,558

4

%

$

13,308,526

$

12,581,703

6

%

Investments

3,568,209

3,012,317

18

%

3,353,548

6

%

3,165,195

2,885,745

10

%

Interest earning assets

16,854,591

16,305,908

3

%

16,082,106

5

%

16,473,721

15,467,448

7

%

Total assets

17,745,066

17,164,893

3

%

17,020,795

4

%

17,344,095

16,411,150

6

%

Interest bearing deposits

9,144,727

9,015,034

1

%

9,901,623

(8

)%

9,160,884

9,807,940

(7

)%

Interest bearing liabilities

9,661,560

9,533,532

1

%

10,557,499

(8

)%

9,683,035

10,622,056

(9

)%

Noninterest bearing demand deposits

5,848,983

5,445,457

7

%

4,239,108

38

%

5,451,908

3,573,448

53

%

Stockholders' equity

2,092,018

2,066,016

1

%

2,039,555

3

%

2,068,676

2,028,074

2

%

Net interest earning assets

7,193,031

6,772,376

6

%

5,524,607

30

%

6,790,686

4,845,392

40

%

LOAN PORTFOLIO COMPOSITION:

9/30/2021

6/30/2021

% change

12/31/2020

% change

9/30/2020

% change

Commercial loans

$

3,857,879

$

4,001,423

(4

)%

$

4,157,787

(7

)%

$

3,700,020

4

%

Real estate loans

8,908,657

8,832,276

1

%

8,772,134

2

%

8,713,536

2

%

Consumer and other loans

652,155

590,602

10

%

633,292

3

%

706,669

(8

)%

Loans, net of deferred loan fees and costs

13,418,691

13,424,301

-

%

13,563,213

(1

)%

13,120,225

2

%

Allowance for credit losses

(136,774

)

(189,452

)

(28

)%

(206,741

)

(34

)%

(179,849

)

(24

)%

Loan receivable, net

$

13,281,917

$

13,234,849

-

%

$

13,356,472

(1

)%

$

12,940,376

3

%

REAL ESTATE LOANS BY PROPERTY TYPE:

9/30/2021

6/30/2021

% change

12/31/2020

% change

9/30/2020

% change

Retail buildings

$

2,466,881

$

2,361,891

4

%

$

2,293,396

8

%

$

2,311,516

7

%

Hotels/motels

1,385,003

1,439,770

(4

)%

1,634,287

(15

)%

1,675,960

(17

)%

Gas stations/car washes

999,069

954,394

5

%

892,110

12

%

824,378

21

%

Mixed-use facilities

819,516

798,373

3

%

750,867

9

%

754,096

9

%

Warehouses

1,160,863

1,149,393

1

%

1,091,389

6

%

1,022,657

14

%

Multifamily

691,262

575,943

20

%

518,498

33

%

518,295

33

%

Other

1,386,063

1,552,512

(11

)%

1,591,587

(13

)%

1,606,634

(14

)%

Total

$

8,908,657

$

8,832,276

1

%

$

8,772,134

2

%

$

8,713,536

2

%

DEPOSIT COMPOSITION

9/30/2021

6/30/2021

% change

12/31/2020

% change

9/30/2020

% change

Noninterest bearing demand deposits

$

6,007,586

$

5,638,115

7

%

$

4,814,254

25

%

$

4,488,529

34

%

Money market and other

5,871,567

5,786,697

1

%

5,232,413

12

%

4,763,893

23

%

Saving deposits

314,603

308,651

2

%

300,770

5

%

308,943

2

%

Time deposits

2,868,771

2,992,767

(4

)%

3,986,475

(28

)%

4,446,991

(35

)%

Total deposit balances

$

15,062,527

$

14,726,230

2

%

$

14,333,912

5

%

$

14,008,356

8

%

DEPOSIT COMPOSITION (%)

9/30/2021

6/30/2021

12/31/2020

9/30/2020

Noninterest bearing demand deposits

39.9

%

38.3

%

33.6

%

32.1

%

Money market and other

39.0

%

39.2

%

36.5

%

34.0

%

Saving deposits

2.1

%

2.1

%

2.1

%

2.2

%

Time deposits

19.0

%

20.4

%

27.8

%

31.7

%

Total deposit balances

100.0

%

100.0

%

100.0

%

100.0

%

Hope Bancorp, Inc.

Selected Financial Data

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

Three Months Ended Nine Months Ended

AVERAGE 9/30/2021 6/30/2021 % 9/30/2020 % 9/30/2021 9/30/2020 %BALANCES: change change change

Loansreceivable,including $ 13,286,382 $ 13,293,591 - % $ 12,728,558 4 % $ 13,308,526 $ 12,581,703 6 %loans heldfor sale

Investments 3,568,209 3,012,317 18 % 3,353,548 6 % 3,165,195 2,885,745 10 %

Interestearning 16,854,591 16,305,908 3 % 16,082,106 5 % 16,473,721 15,467,448 7 %assets

Total assets 17,745,066 17,164,893 3 % 17,020,795 4 % 17,344,095 16,411,150 6 %



Interestbearing 9,144,727 9,015,034 1 % 9,901,623 (8 )% 9,160,884 9,807,940 (7 )%deposits

Interestbearing 9,661,560 9,533,532 1 % 10,557,499 (8 )% 9,683,035 10,622,056 (9 )%liabilities

Noninterestbearing 5,848,983 5,445,457 7 % 4,239,108 38 % 5,451,908 3,573,448 53 %demanddeposits

Stockholders' 2,092,018 2,066,016 1 % 2,039,555 3 % 2,068,676 2,028,074 2 %equity

Net interestearning 7,193,031 6,772,376 6 % 5,524,607 30 % 6,790,686 4,845,392 40 %assets



LOAN % %PORTFOLIO 9/30/2021 6/30/2021 change 12/31/2020 change 9/30/2020 % change COMPOSITION:

Commercial $ 3,857,879 $ 4,001,423 (4 )% $ 4,157,787 (7 )% $ 3,700,020 4 % loans

Real estate 8,908,657 8,832,276 1 % 8,772,134 2 % 8,713,536 2 % loans

Consumer and 652,155 590,602 10 % 633,292 3 % 706,669 (8 ) other loans %

Loans, net ofdeferred loan 13,418,691 13,424,301 - % 13,563,213 (1 )% 13,120,225 2 % fees andcosts

Allowance for (136,774 ) (189,452 ) (28 )% (206,741 ) (34 )% (179,849 ) (24 ) credit losses %

Loanreceivable, $ 13,281,917 $ 13,234,849 - % $ 13,356,472 (1 )% $ 12,940,376 3 % net



REAL ESTATELOANS BY 9/30/2021 6/30/2021 % 12/31/2020 % 9/30/2020 % change PROPERTY change changeTYPE:

Retail $ 2,466,881 $ 2,361,891 4 % $ 2,293,396 8 % $ 2,311,516 7 % buildings

Hotels/motels 1,385,003 1,439,770 (4 )% 1,634,287 (15 )% 1,675,960 (17 ) %

Gas stations/ 999,069 954,394 5 % 892,110 12 % 824,378 21 % car washes

Mixed-use 819,516 798,373 3 % 750,867 9 % 754,096 9 % facilities

Warehouses 1,160,863 1,149,393 1 % 1,091,389 6 % 1,022,657 14 %

Multifamily 691,262 575,943 20 % 518,498 33 % 518,295 33 %

Other 1,386,063 1,552,512 (11 )% 1,591,587 (13 )% 1,606,634 (14 ) %

Total $ 8,908,657 $ 8,832,276 1 % $ 8,772,134 2 % $ 8,713,536 2 %



DEPOSIT 9/30/2021 6/30/2021 % 12/31/2020 % 9/30/2020 % change COMPOSITION change change

Noninterestbearing $ 6,007,586 $ 5,638,115 7 % $ 4,814,254 25 % $ 4,488,529 34 % demanddeposits

Money market 5,871,567 5,786,697 1 % 5,232,413 12 % 4,763,893 23 % and other

Saving 314,603 308,651 2 % 300,770 5 % 308,943 2 % deposits

Time deposits 2,868,771 2,992,767 (4 )% 3,986,475 (28 )% 4,446,991 (35 ) %

Total deposit $ 15,062,527 $ 14,726,230 2 % $ 14,333,912 5 % $ 14,008,356 8 % balances



DEPOSITCOMPOSITION 9/30/2021 6/30/2021 12/31/2020 9/30/2020 (%)

Noninterestbearing 39.9 % 38.3 % 33.6 % 32.1 % demanddeposits

Money market 39.0 % 39.2 % 36.5 % 34.0 % and other

Saving 2.1 % 2.1 % 2.1 % 2.2 % deposits

Time deposits 19.0 % 20.4 % 27.8 % 31.7 %

Total deposit 100.0 % 100.0 % 100.0 % 100.0 % balances

CAPITAL RATIOS:

9/30/2021

6/30/2021

9/30/2020

Total stockholders' equity

$

2,074,398

$

2,092,870

$

2,040,561

Common equity tier 1 ratio

11.01

%

11.44

%

11.36

%

Tier 1 risk-based capital ratio

11.70

%

12.14

%

12.09

%

Total risk-based capital ratio

12.42

%

13.16

%

13.19

%

Tier 1 leverage ratio

9.98

%

10.43

%

10.02

%

Total risk weighted assets

$

14,737,809

$

14,354,682

$

13,691,823

Book value per common share

$

17.26

$

16.92

$

16.55

Tangible common equity to tangible assets 1

9.24

%

9.53

%

9.63

%

Tangible common equity per share 1

$

13.33

$

13.10

$

12.70



CAPITAL 9/30/2021 6/30/2021 9/30/2020 RATIOS:

Totalstockholders' $ 2,074,398 $ 2,092,870 $ 2,040,561 equity

Common equity 11.01 % 11.44 % 11.36 % tier 1 ratio

Tier 1risk-based 11.70 % 12.14 % 12.09 % capital ratio

Totalrisk-based 12.42 % 13.16 % 13.19 % capital ratio

Tier 1 9.98 % 10.43 % 10.02 % leverage ratio

Total riskweighted $ 14,737,809 $ 14,354,682 $ 13,691,823 assets

Book value per $ 17.26 $ 16.92 $ 16.55 common share

Tangiblecommon equity 9.24 % 9.53 % 9.63 % to tangibleassets ^1

Tangiblecommon equity $ 13.33 $ 13.10 $ 12.70 per share ^1

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.

^1 Tangible common equity to tangible assets is a non-GAAP financialmeasure that represents common equity less goodwill and core depositintangible assets, net divided by total assets less goodwill and coredeposit intangible assets, net. Management reviews tangible common equity to tangible assets in evaluating the Company's capital levelsand has included this ratio in response to market participant interestin tangible common equity as a measure of capital.

Three Months Ended

Nine Months Ended

ALLOWANCE FOR CREDIT LOSSES CHANGES:

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

9/30/2021

9/30/2020

Balance at beginning of period

$

189,452

$

207,943

$

206,741

$

179,849

$

161,771

$

206,741

$

94,144

CECL day 1 adoption impact

-

-

-

-

-

-

26,200

Provision (credit) for credit losses

(10,000

)

(7,000

)

3,300

27,500

22,000

(13,700

)

67,500

Recoveries

1,906

1,301

1,423

2,207

2,428

4,630

5,216

Charge offs

(44,584

)

(12,792

)

(3,521

)

(2,815

)

(6,350

)

(60,897

)

(13,211

)

Balance at end of period

$

136,774

$

189,452

$

207,943

$

206,741

$

179,849

$

136,774

$

179,849

Net charge offs/average loans receivable (annualized)

1.28

%

0.35

%

0.06

%

0.02

%

0.12

%

0.56

%

0.08

%

Three Months Ended

Nine Months Ended

NET LOAN CHARGE OFFS (RECOVERIES):

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

9/30/2021

9/30/2020

Real estate loans

$

40,542

$

11,281

$

2,234

$

(726

)

$

5,154

$

54,057

$

7,532

Commercial loans

1,117

181

(80

)

1,167

(1,451

)

1,218

(535

)

Consumer loans

1,019

29

(56

)

167

219

992

998

Total net charge offs

$

42,678

$

11,491

$

2,098

$

608

$

3,922

$

56,267

$

7,995

Three Months Ended Nine Months Ended

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

Balance atbeginning of $ 189,452 $ 207,943 $ 206,741 $ 179,849 $ 161,771 $ 206,741 $ 94,144 period

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

Provision(credit) for (10,000 ) (7,000 ) 3,300 27,500 22,000 (13,700 ) 67,500 credit losses

Recoveries 1,906 1,301 1,423 2,207 2,428 4,630 5,216

Charge offs (44,584 ) (12,792 ) (3,521 ) (2,815 ) (6,350 ) (60,897 ) (13,211 )

Balance at end $ 136,774 $ 189,452 $ 207,943 $ 206,741 $ 179,849 $ 136,774 $ 179,849 of period

Net charge offs/average loans 1.28 % 0.35 % 0.06 % 0.02 % 0.12 % 0.56 % 0.08 %receivable(annualized)



Three Months Ended Nine Months Ended

NET LOAN CHARGEOFFS 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020(RECOVERIES):

Real estate $ 40,542 $ 11,281 $ 2,234 $ (726 ) $ 5,154 $ 54,057 $ 7,532 loans

Commercial 1,117 181 (80 ) 1,167 (1,451 ) 1,218 (535 ) loans

Consumer loans 1,019 29 (56 ) 167 219 992 998

Total net $ 42,678 $ 11,491 $ 2,098 $ 608 $ 3,922 $ 56,267 $ 7,995 charge offs



Hope Bancorp, Inc.

Selected Financial Data

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

NONPERFORMING ASSETS:

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

Loans on nonaccrual status 3

$

54,380

$

111,008

$

109,858

$

85,238

$

69,205

Delinquent loans 90 days or more on accrual status

4,567

4,759

384

614

1,537

Accruing troubled debt restructured loans

39,509

51,360

41,773

37,354

35,429

Total nonperforming loans

98,456

167,127

152,015

123,206

106,171

Other real estate owned

15,213

16,619

18,515

20,121

18,410

Total nonperforming assets

$

113,669

$

183,746

$

170,530

$

143,327

$

124,581

Nonperforming assets/total assets

0.64

%

1.05

%

0.99

%

0.84

%

0.74

%

Nonperforming assets/loans receivable & OREO

0.85

%

1.37

%

1.24

%

1.06

%

0.95

%

Nonperforming assets/total capital

5.48

%

8.78

%

8.34

%

6.98

%

6.11

%

Nonperforming loans/loans receivable

0.73

%

1.24

%

1.11

%

0.91

%

0.81

%

Nonaccrual loans/loans receivable

0.41

%

0.83

%

0.80

%

0.63

%

0.53

%

Allowance for credit losses/loans receivable

1.02

%

1.41

%

1.52

%

1.52

%

1.37

%

Allowance for credit losses/nonaccrual loans

251.52

%

170.67

%

189.28

%

242.55

%

259.88

%

Allowance for credit losses/nonperforming loans

138.92

%

113.36

%

136.79

%

167.80

%

169.40

%

Allowance for credit losses/nonperforming assets

120.33

%

103.11

%

121.94

%

144.24

%

144.36

%

3

Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $20.6 million, $23.6 million, $25.0 million, $26.5 million, and $26.2 million at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.

NONACCRUAL LOANS BY TYPE:

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

Real estate loans

$

41,673

$

95,622

$

91,940

$

67,450

$

51,739

Commercial loans

10,991

12,217

14,080

13,911

13,022

Consumer loans

1,716

3,169

3,838

3,877

4,444

Total nonaccrual loans

$

54,380

$

111,008

$

109,858

$

85,238

$

69,205

BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

Retail buildings

$

11,280

$

12,110

$

6,319

$

5,408

$

5,451

Gas stations/car washes

202

206

210

219

224

Mixed-use facilities

7,937

7,967

3,377

3,521

4,323

Warehouses

4,908

14,099

14,124

7,296

7,320

Other 4

15,182

16,978

17,743

20,910

18,111

Total

$

39,509

$

51,360

$

41,773

$

37,354

$

35,429

4

Includes commercial business, consumer, and other loans

Hope Bancorp, Inc.

Selected Financial Data

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

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

Loans on nonaccrual $ 54,380 $ 111,008 $ 109,858 $ 85,238 $ 69,205 status ^3

Delinquent loans 90 days or more on 4,567 4,759 384 614 1,537 accrual status

Accruing troubled debt 39,509 51,360 41,773 37,354 35,429 restructured loans

Total nonperforming 98,456 167,127 152,015 123,206 106,171 loans

Other real 15,213 16,619 18,515 20,121 18,410 estate owned

Total nonperforming $ 113,669 $ 183,746 $ 170,530 $ 143,327 $ 124,581 assets

Nonperforming assets/total 0.64 % 1.05 % 0.99 % 0.84 % 0.74 % assets

Nonperforming assets/loans 0.85 % 1.37 % 1.24 % 1.06 % 0.95 % receivable & OREO

Nonperforming assets/total 5.48 % 8.78 % 8.34 % 6.98 % 6.11 % capital

Nonperforming loans/loans 0.73 % 1.24 % 1.11 % 0.91 % 0.81 % receivable

Nonaccrual loans/loans 0.41 % 0.83 % 0.80 % 0.63 % 0.53 % receivable

Allowance for credit losses 1.02 % 1.41 % 1.52 % 1.52 % 1.37 % /loans receivable

Allowance for credit losses 251.52 % 170.67 % 189.28 % 242.55 % 259.88 % /nonaccrual loans

Allowance for credit losses / 138.92 % 113.36 % 136.79 % 167.80 % 169.40 % nonperforming loans

Allowance for credit losses / 120.33 % 103.11 % 121.94 % 144.24 % 144.36 % nonperforming assets



Excludes delinquent SBA loans that are guaranteed and currently in liquidation^ totaling $20.6 million, $23.6 million, $25.0 million, $26.5 million, and $26.23 million at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.





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

Real estate $ 41,673 $ 95,622 $ 91,940 $ 67,450 $ 51,739 loans

Commercial 10,991 12,217 14,080 13,911 13,022 loans

Consumer 1,716 3,169 3,838 3,877 4,444 loans

Total nonaccrual $ 54,380 $ 111,008 $ 109,858 $ 85,238 $ 69,205 loans





BREAKDOWN OF ACCRUING TROUBLED DEBT 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 RESTRUCTURED LOANS:

Retail $ 11,280 $ 12,110 $ 6,319 $ 5,408 $ 5,451 buildings

Gas stations/ 202 206 210 219 224 car washes

Mixed-use 7,937 7,967 3,377 3,521 4,323 facilities

Warehouses 4,908 14,099 14,124 7,296 7,320

Other ^4 15,182 16,978 17,743 20,910 18,111

Total $ 39,509 $ 51,360 $ 41,773 $ 37,354 $ 35,429



Includes^ commercial4 business, consumer, and other loans



ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

30 - 59 days

$

15,016

$

22,466

$

18,175

$

11,347

$

5,962

60 - 89 days

4,746

6,987

8,314

16,826

58,065

Total

$

19,762

$

29,453

$

26,489

$

28,173

$

64,027

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

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

Real estate loans

$

10,359

$

21,432

$

18,331

$

15,689

$

60,510

Commercial loans

9,377

560

1,002

3,393

624

Consumer loans

26

7,461

7,156

9,091

2,893

Total

$

19,762

$

29,453

$

26,489

$

28,173

$

64,027

CRITICIZED LOANS:

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

Special mention

$

306,766

$

294,559

$

280,974

$

184,941

$

153,388

Substandard

243,684

380,955

379,048

366,556

311,902

Doubtful/loss

-

-

-

1

6,640

Total criticized loans

$

550,450

$

675,514

$

660,022

$

551,498

$

471,930

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

30 - 59 $ 15,016 $ 22,466 $ 18,175 $ 11,347 $ 5,962 days

60 - 89 4,746 6,987 8,314 16,826 58,065 days

Total $ 19,762 $ 29,453 $ 26,489 $ 28,173 $ 64,027





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

Real estate $ 10,359 $ 21,432 $ 18,331 $ 15,689 $ 60,510 loans

Commercial 9,377 560 1,002 3,393 624 loans

Consumer 26 7,461 7,156 9,091 2,893 loans

Total $ 19,762 $ 29,453 $ 26,489 $ 28,173 $ 64,027





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

Special $ 306,766 $ 294,559 $ 280,974 $ 184,941 $ 153,388 mention

Substandard 243,684 380,955 379,048 366,556 311,902

Doubtful/ - - - 1 6,640 loss

Totalcriticized $ 550,450 $ 675,514 $ 660,022 $ 551,498 $ 471,930 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

Nine Months Ended

9/30/2021

6/30/2021

9/30/2020

9/30/2021

9/30/2020

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Average stockholders' equity

$

2,092,018

$

2,066,016

$

2,039,555

$

2,068,676

$

2,028,074

Less: Goodwill and core deposit intangible assets, net

(472,918

)

(473,445

)

(475,010

)

(473,438

)

(475,530

)

Average tangible common equity

$

1,619,100

$

1,592,571

$

1,564,545

$

1,595,238

$

1,552,544

Net income

$

55,499

$

53,763

$

30,490

$

152,949

$

83,196

Return on average tangible common equity (annualized)

13.71

%

13.50

%

7.80

%

12.78

%

7.14

%

9/30/2021

6/30/2021

12/31/2020

9/30/2020

TANGIBLE COMMON EQUITY

Total stockholders' equity

$

2,074,398

$

2,092,870

$

2,053,745

$

2,040,561

Less: Goodwill and core deposit intangible assets, net

(472,630

)

(473,139

)

(474,158

)

(474,689

)

Tangible common equity

$

1,601,768

$

1,619,731

$

1,579,587

$

1,565,872

Total assets

$

17,799,026

$

17,469,627

$

17,106,664

$

16,733,767

Less: Goodwill and core deposit intangible assets, net

(472,630

)

(473,139

)

(474,158

)

(474,689

)

Tangible assets

$

17,326,396

$

16,996,488

$

16,632,506

$

16,259,078

Common shares outstanding

120,198,061

123,673,832

123,264,864

123,260,760

Tangible common equity to tangible assets

9.24

%

9.53

%

9.50

%

9.63

%

Tangible common equity per share

$

13.33

$

13.10

$

12.81

$

12.70

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 Nine Months Ended

9/30/2021 6/30/2021 9/30/2020 9/30/2021 9/30/2020

RETURN ONAVERAGE TANGIBLECOMMON EQUITY

Averagestockholders' $ 2,092,018 $ 2,066,016 $ 2,039,555 $ 2,068,676 $ 2,028,074 equity

Less:Goodwill andcore deposit (472,918 ) (473,445 ) (475,010 ) (473,438 ) (475,530 )intangibleassets, net

Averagetangible $ 1,619,100 $ 1,592,571 $ 1,564,545 $ 1,595,238 $ 1,552,544 common equity



Net income $ 55,499 $ 53,763 $ 30,490 $ 152,949 $ 83,196

Return onaveragetangible 13.71 % 13.50 % 7.80 % 12.78 % 7.14 %common equity(annualized)





9/30/2021 6/30/2021 12/31/2020 9/30/2020

TANGIBLE COMMON EQUITY

Totalstockholders' $ 2,074,398 $ 2,092,870 $ 2,053,745 $ 2,040,561 equity

Less:Goodwill andcore deposit (472,630 ) (473,139 ) (474,158 ) (474,689 ) intangibleassets, net

Tangible $ 1,601,768 $ 1,619,731 $ 1,579,587 $ 1,565,872 common equity



Total assets $ 17,799,026 $ 17,469,627 $ 17,106,664 $ 16,733,767

Less:Goodwill andcore deposit (472,630 ) (473,139 ) (474,158 ) (474,689 ) intangibleassets, net

Tangible $ 17,326,396 $ 16,996,488 $ 16,632,506 $ 16,259,078 assets



Common shares 120,198,061 123,673,832 123,264,864 123,260,760 outstanding



Tangiblecommon equity 9.24 % 9.53 % 9.50 % 9.63 % to tangibleassets

Tangiblecommon equity $ 13.33 $ 13.10 $ 12.81 $ 12.70 per share

Three Months Ended

Nine Months Ended

9/30/2021

6/30/2021

9/30/2020

9/30/2021

9/30/2020

PRE-PROVISION NET REVENUE

Net interest income before provision (credit) for credit losses

$

130,296

$

126,577

$

117,637

$

379,452

$

346,742

Noninterest income

10,617

11,076

17,513

30,497

42,017

Revenue

140,913

137,653

135,150

409,949

388,759

Noninterest expense

75,502

73,123

73,406

219,056

212,576

Pre-provision net revenue

$

65,411

$

64,530

$

61,744

$

190,893

$

176,183

View source version on businesswire.com: https://www.businesswire.com/news/home/20211025005743/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