Business Wire | Jan 24, 2022 04:15PM EST

Hope Bancorp Reports 2021 Fourth Quarter and Full-Year Financial Results

Jan. 24, 2022

LOS ANGELES--(BUSINESS WIRE)--Jan. 24, 2022--Hope Bancorp, Inc. (the "Company") (NASDAQ: HOPE), the holding company of Bank of Hope (the "Bank"), today reported unaudited financial results for its fourth quarter and full year ended December 31, 2021.

For the three months ended December 31, 2021, net income totaled $51.6 million, or $0.43 per diluted common share. This compares with net income of $55.5 million, or $0.45 per diluted common share, in the third quarter of 2021 and $28.3 million, or $0.23 per diluted common share, in the fourth quarter of 2020. Pre-provision net revenue(1) for the 2021 fourth quarter increased 10% over the 2021 third quarter and increased 18% over the prior-year fourth quarter.

For the full year ended December 31, 2021, net income totaled $204.6 million, or $1.66 per diluted common share, compared with net income of $111.5 million, or $0.90 per diluted common share for the year ended December 31, 2020. Pre-provision net revenue(1) for 2021 increased 11% over 2020.

"We delivered an outstanding financial performance in the fourth quarter of 2021 to close out a year with record levels of loan production, a more diversified, lower-risk loan portfolio, continued improvement in our deposit composition, and enhanced efficiencies and profitability," said Kevin S. Kim, Chairman, President and Chief Executive Officer. "Following the successful de-risking and rebalancing of our loan portfolio, record loan production of $1.24 billion in the fourth quarter led to a 4% quarter-over-quarter increase in loans receivable. We also continued to enhance the quality of our deposit franchise with core deposit growth leading to a ninth consecutive quarter of decreasing deposit costs. The redeployment of excess cash into higher-yielding earning assets resulted in increased levels of net interest income and drove a 6 basis point expansion of our net interest margin quarter-over-quarter. Altogether with our continued expense management, we delivered double-digit growth in our pre-provision net revenue(1) for the 2021 fourth quarter versus the preceding third quarter, as well as for the full 2021 year compared with the prior year.

"The strong headwinds of 2021 are behind us, and we began 2022 with tremendous momentum following a solid fourth quarter performance reflective of our more traditional growth levels. Armed with greater confidence in our ability to navigate through a new normal that includes a lingering pandemic and with an expanded and improved business development team and focus, I believe the long-term prospects of our franchise is stronger today than it has ever been," said Kim.

Q4 2021 Highlights

* Loan originations increased 23% quarter-over-quarter to a record $1.24 billion and contributed to a 4.0% increase in loans receivable quarter-over-quarter, or 15.9% annualized. * Excluding PPP, loans receivable increased 4.9% quarter-over-quarter, or 19.6% annualized. * Net interest income before provision for credit losses increased 2% quarter-over-quarter to $133.3 million, reflecting the redeployment of excess cash into loans and investment securities and lower cost of deposits. * Total cost of deposits decreased 3 basis points quarter-over-quarter, reflecting the ongoing downward repricing of interest bearing deposits, and represented the ninth consecutive quarter of declining deposit costs. * Noninterest expenses continued to be well managed with efficiency ratio improving 288 basis points quarter-over-quarter to 50.70% and noninterest expense to average assets improving to 1.67%. * Pre-provision net revenue(1) increased 10% quarter-over-quarter and totaled $72.2 million. * Company recorded net recoveries of $2.3 million related to a large loan previously charged off during the 2021 third quarter. * Total nonperforming assets declined quarter-over-quarter by $1.9 million, and criticized loans decreased by $50.9 million. * Re-entered the state of Georgia with a new branch opening in the epicenter of Atlanta's growing Korean American community.

Pre-provision net revenue, a non-GAAP financial measure, represents the sum of net interest income before provision (credit) for credit losses and^ non-interest income less noninterest expense. Management's reasons and(1) purposes for using this non-GAAP financial measure is set forth on page 7 of this earnings release. A quantitative reconciliation of the GAAP to non-GAAP financial measures is 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)

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

Net income $ 51,623 $ 55,499 $ 28,319

Diluted earnings per share $ 0.43 $ 0.45 $ 0.23

Pre-provision net revenue^ (1) $ 72,179 $ 65,411 $ 61,108

Net interest income beforeprovision (credit) for credit $ 133,318 $ 130,296 $ 120,756 losses

Net interest margin 3.13 % 3.07 % 3.02 %

Noninterest income $ 13,097 $ 10,617 $ 11,415

Noninterest expense $ 74,236 $ 75,502 $ 71,063

Net loans receivable $ 13,812,193 $ 13,281,917 $ 13,356,472

Deposits $ 15,040,450 $ 15,062,527 $ 14,333,912

Total cost of deposits 0.23 % 0.26 % 0.48 %

Nonaccrual loans ^(2) $ 54,616 $ 54,380 $ 85,238

Nonperforming loans to loans 0.78 % 0.73 % 0.91 %receivable ^(2)

ACL to loans receivable 1.01 % 1.02 % 1.52 %

ACL to nonaccrual loans ^(2) 257.34 % 251.52 % 242.55 %

ACL to nonperforming assets ^ 125.76 % 120.33 % 144.24 %(2)

Provision (credit) for credit $ 1,500 $ (10,000 ) $ 27,500 losses

Net (recoveries) charge offs $ (2,276 ) $ 42,678 $ 608

Return on average assets 1.16 % 1.25 % 0.67 %("ROA")

Return on average equity 9.93 % 10.61 % 5.54 %("ROE")

Return on average tangible 12.85 % 13.71 % 7.21 %common equity ("ROTCE") ^(1)

Noninterest expense / average 1.67 % 1.70 % 1.69 %assets

Efficiency ratio 50.70 % 53.58 % 53.77 %

(1)

Pre-provision net revenue and return on average tangible common equity are non-GAAP financial measures. Management's reasons and purposes for using these non-GAAP financial measures are set forth on Page 7 of this earnings release. A quantitative reconciliation of the Company's GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.

(2)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation

Operating Results for the 2021 Fourth Quarter

Net interest income before provision for credit losses for the 2021 fourth quarter increased 2% to $133.3 million from $130.3 million in the 2021 third quarter and increased 10% from $120.8 million in the year-ago fourth quarter. The Company attributed the increase to higher interest income due to higher average balances of loans receivable and investment securities, as well as lower interest expense on deposits.

The net interest margin for the 2021 fourth quarter increased 6 basis points to 3.13% from 3.07% in the preceding third quarter, primarily attributed to the redeployment of cash into loans and investment securities, and a 3 basis point reduction in the cost of deposits. The net interest margin in the prior-year fourth quarter was 3.02%.

The weighted average yield on loans for the 2021 fourth quarter was 3.95%, compared with 3.97% in the preceding third quarter, and 4.03% in the year-ago fourth quarter.

The weighted average cost of deposits for the 2021 fourth quarter decreased for the ninth consecutive quarter to 0.23%, representing a 3 basis point decrease from 0.26% for the 2021 third quarter and a 25 basis point decrease from 0.48% for the 2020 fourth quarter. The Company attributed the improvements in the weighted average cost of deposits to the ongoing downward repricing of interest bearing deposits. The cost of interest bearing deposits was 0.39%, 0.42%, and 0.71% for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020, respectively.

Noninterest income for the 2021 fourth quarter increased 23% quarter-over-quarter to $13.1 million from $10.6 million in the preceding third quarter, reflecting higher levels of deposit and transaction fees, net gain on sale of SBA loans, swap fee income, and equity investment dividend income. During the 2021 fourth quarter, the Company sold $41.0 million in the guaranteed portion of SBA 7(a) loans, compared with $31.3 million in the preceding third quarter. Noninterest income in the 2020 fourth quarter totaled $11.4 million.

Noninterest expense for the 2021 fourth quarter decreased to $74.2 million from $75.5 million for the preceding third quarter, largely reflecting lower salaries and employee benefits expense, partially offset by higher OREO expenses. For the 2020 fourth quarter, noninterest expense totaled $71.1 million.

Salaries and employee benefits expense for the 2021 fourth quarter decreased to $44.6 million from $47.0 million in the preceding third quarter, and is attributable to more normalized bonus reserves, a decrease in stock compensation expense, and an increase in deferred loan origination costs. Salaries and employee benefits expense for the 2020 fourth quarter totaled $40.9 million.

The Company's efficiency ratio for the 2021 fourth quarter improved to 50.7% from 53.6% in the preceding third quarter and 53.8% in the year-ago fourth quarter. Noninterest expense as a percentage of average assets improved to 1.67% for the 2021 fourth quarter from 1.70% for the 2021 third quarter and from 1.69% for the 2020 fourth quarter.

The effective tax rate for the 2021 fourth quarter was 27.0%, compared with 26.4% for the preceding third quarter, reflecting an increase in the Company's actual 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 fourth quarter, the effective tax rate was materially lower than the preceding quarters of 2020 at 15.7%, which reflected a lower tax provision based on adjustments to the applicable state apportionment factors. The effective tax rate for the full-year 2021 was 25.7%, compared with 21.6% for 2020. The increase in the full-year tax rate was mainly due to an increase in pretax income during 2021 and the change in the Company's state apportionment in 2020 which materially lowered the tax rate for that year.

Balance Sheet Summary

New loan originations funded during the 2021 fourth quarter increased 23% quarter-over-quarter to a record $1.24 billion from the previous record of $1.01 billion in the preceding third quarter. In the year-ago fourth quarter, the Company originated $844.2 million of new loans.

Following are the components of new loan production for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020.

Pre-provision net revenue and return on average tangible common equity are non-GAAP financial measures. Management's reasons and purposes for using^ these non-GAAP financial measures are set forth on Page 7 of this earnings(1) release. A quantitative reconciliation of the Company's GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.

^ Excludes delinquent SBA loans that are guaranteed and currently in(2) liquidation

Operating Results for the 2021 Fourth Quarter

Net interest income before provision for credit losses for the 2021 fourth quarter increased 2% to $133.3 million from $130.3 million in the 2021 third quarter and increased 10% from $120.8 million in the year-ago fourth quarter. The Company attributed the increase to higher interest income due to higher average balances of loans receivable and investment securities, as well as lower interest expense on deposits.

The net interest margin for the 2021 fourth quarter increased 6 basis points to 3.13% from 3.07% in the preceding third quarter, primarily attributed to the redeployment of cash into loans and investment securities, and a 3 basis point reduction in the cost of deposits. The net interest margin in the prior-year fourth quarter was 3.02%.

The weighted average yield on loans for the 2021 fourth quarter was 3.95%, compared with 3.97% in the preceding third quarter, and 4.03% in the year-ago fourth quarter.

The weighted average cost of deposits for the 2021 fourth quarter decreased for the ninth consecutive quarter to 0.23%, representing a 3 basis point decrease from 0.26% for the 2021 third quarter and a 25 basis point decrease from 0.48% for the 2020 fourth quarter. The Company attributed the improvements in the weighted average cost of deposits to the ongoing downward repricing of interest bearing deposits. The cost of interest bearing deposits was 0.39%, 0.42%, and 0.71% for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020, respectively.

Noninterest income for the 2021 fourth quarter increased 23% quarter-over-quarter to $13.1 million from $10.6 million in the preceding third quarter, reflecting higher levels of deposit and transaction fees, net gain on sale of SBA loans, swap fee income, and equity investment dividend income. During the 2021 fourth quarter, the Company sold $41.0 million in the guaranteed portion of SBA 7(a) loans, compared with $31.3 million in the preceding third quarter. Noninterest income in the 2020 fourth quarter totaled $11.4 million.

Noninterest expense for the 2021 fourth quarter decreased to $74.2 million from $75.5 million for the preceding third quarter, largely reflecting lower salaries and employee benefits expense, partially offset by higher OREO expenses. For the 2020 fourth quarter, noninterest expense totaled $71.1 million.

Salaries and employee benefits expense for the 2021 fourth quarter decreased to $44.6 million from $47.0 million in the preceding third quarter, and is attributable to more normalized bonus reserves, a decrease in stock compensation expense, and an increase in deferred loan origination costs. Salaries and employee benefits expense for the 2020 fourth quarter totaled $40.9 million.

The Company's efficiency ratio for the 2021 fourth quarter improved to 50.7% from 53.6% in the preceding third quarter and 53.8% in the year-ago fourth quarter. Noninterest expense as a percentage of average assets improved to 1.67% for the 2021 fourth quarter from 1.70% for the 2021 third quarter and from 1.69% for the 2020 fourth quarter.

The effective tax rate for the 2021 fourth quarter was 27.0%, compared with 26.4% for the preceding third quarter, reflecting an increase in the Company's actual 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 fourth quarter, the effective tax rate was materially lower than the preceding quarters of 2020 at 15.7%, which reflected a lower tax provision based on adjustments to the applicable state apportionment factors. The effective tax rate for the full-year 2021 was 25.7%, compared with 21.6% for 2020. The increase in the full-year tax rate was mainly due to an increase in pretax income during 2021 and the change in the Company's state apportionment in 2020 which materially lowered the tax rate for that year.

Balance Sheet Summary

New loan originations funded during the 2021 fourth quarter increased 23% quarter-over-quarter to a record $1.24 billion from the previous record of $1.01 billion in the preceding third quarter. In the year-ago fourth quarter, the Company originated $844.2 million of new loans.

Following are the components of new loan production for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020.

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

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

Commercial real estate $ 573,978 $ 488,969 $ 326,512

Commercial 532,634 329,702 435,151

SBA (excluding SBA PPP) 54,848 115,023 17,141

Residential mortgage 81,325 75,007 62,492

Consumer 70 500 2,932

Total new loan originations $ 1,242,855 $ 1,009,201 $ 844,228

At December 31, 2021, loans receivable increased 4.0% to $13.95 billion from $13.42 billion at September 30, 2021 and increased 2.9% from $13.56 billion at December 31, 2020.

Total deposits at December 31, 2021 declined slightly to $15.04 billion from $15.06 billion at September 30, 2021, but increased 4.9% year-over-year from $14.33 billion at December 31, 2020. Quarter-over-quarter, money market and NOW deposits increased 5.2%, but was offset by a seasonal decline in noninterest bearing demand deposits and a reduction in time deposits. On a year-over-year basis, noninterest bearing demand deposits at year-end increased 19.5%, money market and NOW deposits increased 18.1%, and time deposits decreased 30.1%.

Following is the deposit composition as of December 31, 2021, September 30, 2021 and December 31, 2020:

(dollars in % %thousands) 12/31/2021 9/30/2021 change 12/31/2020 change(unaudited)

Noninterest )bearing demand $ 5,751,870 $ 6,007,586 (4.3 % $ 4,814,254 19.5 %deposits

Money market and 6,178,850 5,871,567 5.2 % 5,232,413 18.1 %other

Saving deposits 321,377 314,603 2.2 % 300,770 6.9 %

Time deposits 2,788,353 2,868,771 (2.8 ) 3,986,475 (30.1 ) % %

Total deposit $ 15,040,450 $ 15,062,527 (0.1 ) $ 14,333,912 4.9 %balances %

While noninterest bearing demand deposits decreased to $5.75 billion at December 31, 2021 from $6.01 billion as of September 30, 2021 due to seasonality related to larger corporate banking deposit relationships, the average noninterest bearing deposit balance for the 2021 fourth quarter increased 2.0% over the third quarter of 2021.

Following is the deposit composition as a percentage of total deposits as of December 31, 2021, September 30, 2021 and December 31, 2020 and a breakdown of cost of deposits for the quarters ended December 31, 2021, September 30, 2021 and December 31, 2020:

Deposit Breakdown Cost of Deposits

(dollars in thousands) 12/31/ 9/30/ 12/31/ Q4 Q3 Q4(unaudited) 2021 2021 2020 2021 2021 2020

Noninterest bearing 38.3 % 39.9 % 33.6 % - % - % - %demand deposits

Money market and other 41.1 % 39.0 % 36.5 % 0.37 % 0.40 % 0.45 %

Saving deposits 2.1 % 2.1 % 2.1 % 1.18 % 1.18 % 1.17 %

Time deposits 18.5 % 19.0 % 27.8 % 0.34 % 0.38 % 0.98 %

Total deposit balances 100.0 % 100.0 % 100.0 % 0.23 % 0.26 % 0.48 %

Allowance for Credit Losses

In the 2021 fourth quarter, the Company recorded a provision for credit losses of $1.5 million, compared with a negative provision for credit losses of $10.0 million in the preceding third quarter, and a provision for credit losses of $27.5 million in the 2020 fourth quarter.

Following is the allowance for credit losses as of December 31, 2021, September 30, 2021 and December 31, 2020:

(dollars in thousands) (unaudited) 12/31/ 9/30/2021 12/31/ 2021 2020

Allowance for credit losses $ 140,550 $ 136,774 $ 206,741

Allowance for credit loss/loans receivable 1.01 % 1.02 % 1.52 %

Allowance for credit losses/nonperforming 128.75 138.92 167.80loans % % %

Credit Quality

Following are the components of nonperforming assets as of December 31, 2021, September 30, 2021 and December 31, 2020:

(dollars in thousands) (unaudited) 12/31/ 9/30/2021 12/31/ 2021 2020

Loans on nonaccrual status ^(1) $ 54,616 $ 54,380 $ 85,238

Delinquent loans 90 days or more on accrual 2,131 4,567 614status

Accruing troubled debt restructured loans 52,418 39,509 37,354

Total nonperforming loans 109,165 98,456 123,206

Other real estate owned 2,597 15,213 20,121

Total nonperforming assets $ 111,762 $ 113,669 $ 143,327

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $19.5 million, $20.6 million, and $26.5 million, at December 31, 2021, September 30, 2021, and December 31, 2020, respectively.

Total nonperforming assets at December 31, 2021 declined to $111.8 million from $113.7 million at September 30, 2021 and from $143.3 million at December 31, 2020. The quarter-over-quarter decrease in total nonperforming assets largely reflects a $12.6 million reduction in other real estate owned, partially offset by a $10.7 million increase in nonperforming loans due to one large commercial real estate loan.

Following are net (recoveries) charge offs and net (recoveries) charge offs to average loans receivable on an annualized basis for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020:

Excludes delinquent SBA loans that are guaranteed and currently in^ liquidation totaling $19.5 million, $20.6 million, and $26.5 million, at(1) December 31, 2021, September 30, 2021, and December 31, 2020, respectively.

Total nonperforming assets at December 31, 2021 declined to $111.8 million from $113.7 million at September 30, 2021 and from $143.3 million at December 31, 2020. The quarter-over-quarter decrease in total nonperforming assets largely reflects a $12.6 million reduction in other real estate owned, partially offset by a $10.7 million increase in nonperforming loans due to one large commercial real estate loan.

Following are net (recoveries) charge offs and net (recoveries) charge offs to average loans receivable on an annualized basis for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020:

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

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

Net (recoveries) charge offs $ (2,276 ) $ 42,678 $ 608

Net (recoveries) charge offs/average loans (0.07 ) 1.28 % 0.02 %receivable (annualized) %

Net recoveries in the 2021 fourth quarter reflects a partial recovery from a large loan charged off during the preceding third quarter.

Following are the components of criticized loan balances as of December 31, 2021, September 30, 2021 and December 31, 2020:

(dollars in thousands) (unaudited) 12/31/2021 9/30/2021 12/31/2020

Special Mention $ 257,194 $ 306,766 $ 184,941

Classified 242,397 243,684 366,557

Criticized $ 499,591 $ 550,450 $ 551,498

The Company noted that the quarter-over-quarter decrease in criticized loans at December 31, 2021 reflects the benefits of its de-risking strategy focused on reducing higher-risk commercial real estate properties.

Capital

At December 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 December 31, 2021, September 30, 2021 and December 31, 2020:

Minimum Guideline(unaudited) 12/31/ 9/30/ 12/31/ for 2021 2021 2020 "Well-Capitalized" Bank

Common Equity Tier 1 11.03% 11.01% 10.94% 6.50%Capital

Tier 1 Leverage Ratio 10.11% 9.98% 10.22% 5.00%

Tier 1 Risk-Based Ratio 11.70% 11.70% 11.64% 8.00%

Total Risk-Based Ratio 12.42% 12.42% 12.87% 10.00%

Following are tangible common equity(1) ("TCE") per share and TCE as a percentage of tangible assets(1) as of December 31, 2021, September 30, 2021 and December 31, 2020:

(unaudited) 12/31/ 9/30/2021 12/31/ 2021 2020

Tangible common equity per share ^(1) $13.51 $13.33 $12.81

Tangible common equity to tangible assets ^ 9.31% 9.24% 9.50%(1)

(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. 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, tangible common equity per share, tangible assets and tangible common equity to tangible assets are non-GAAP financial measures. Management's reasons and purposes for using these non-GAAP financial measures are set forth on Page 7 of this earnings release. A quantitative reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 10.

Non-GAAP Financial Metrics

This news release contains certain non-GAAP financial disclosures, including pre-provision net revenue, tangible common equity, tangible common equity per share and tangible common equity to tangible assets. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding its operational performance and the Company's and the Bank's capital levels and has included these figures in response to market participant interest in these financial metrics. A reconciliation of the GAAP to non-GAAP financial measures 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, January 25, 2022 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its fourth quarter and full year ended December 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 in the Investor Relations section of Hope Bancorp's website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through February 1, 2022, replay access code 7703555.

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 $17.89 billion in total assets as of December 31, 2021. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 54 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama and Georgia. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.

Forward-Looking Statements

Some statements in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market and statements regarding our business strategies, objectives and vision. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words "will," "believes," "expects," "anticipates," "intends," "plans," "estimates" or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company's actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company's allowances for credit losses, regulatory risks associated with current and future regulations, and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Tangible common equity represents common equity less goodwill and net other intangible assets. Tangible common equity per share represents tangible common equity divided by the number of shares issued and outstanding. 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(1) equity, tangible common equity per share, tangible assets and tangible common equity to tangible assets are non-GAAP financial measures. Management's reasons and purposes for using these non-GAAP financial measures are set forth on Page 7 of this earnings release. A quantitative reconciliation of the GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 10.

Non-GAAP Financial Metrics

This news release contains certain non-GAAP financial disclosures, including pre-provision net revenue, tangible common equity, tangible common equity per share and tangible common equity to tangible assets. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding its operational performance and the Company's and the Bank's capital levels and has included these figures in response to market participant interest in these financial metrics. A reconciliation of the GAAP to non-GAAP financial measures 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, January 25, 2022 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its fourth quarter and full year ended December 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 in the Investor Relations section of Hope Bancorp's website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through February 1, 2022, replay access code 7703555.

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 $17.89 billion in total assets as of December 31, 2021. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 54 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama and Georgia. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.

Forward-Looking Statements

Some statements in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market and statements regarding our business strategies, objectives and vision. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words "will," "believes," "expects," "anticipates," "intends," "plans," "estimates" or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company's actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company's allowances for credit losses, regulatory risks associated with current and future regulations, and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Assets 12/31/2021 9/30/2021 % 12/31/2020 % change change

Cash and due $ 316,266 $ 627,352 (50 )% $ 350,579 (10 )%from banks

Securitiesavailable for 2,666,275 2,669,489 - % 2,285,611 17 %sale, at fairvalue

Federal HomeLoan Bank("FHLB") 87,961 88,102 - % 105,591 (17 )%stock andotherinvestments

Loans heldfor sale, atthe lower of 99,049 179,117 (45 )% 17,743 458 %cost or fairvalue

Loans 13,952,743 13,418,691 4 % 13,563,213 3 %receivable

Allowance for (140,550 ) (136,774 ) 3 % (206,741 ) (32 )%credit losses

Net loans 13,812,193 13,281,917 4 % 13,356,472 3 %receivable

Accruedinterest 41,842 47,102 (11 )% 59,430 (30 )%receivable

Premises andequipment, 45,667 45,307 1 % 48,409 (6 )%net

Bank ownedlife 77,081 76,756 - % 76,765 - %insurance

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

Servicing 10,418 10,787 (3 )% 12,692 (18 )%assets

Otherintangible 7,671 8,180 (6 )% 9,708 (21 )%assets, net

Other assets 260,188 300,467 (13 )% 319,214 (18 )%

Total assets $ 17,889,061 $ 17,799,026 1 % $ 17,106,664 5 %



Liabilities

Deposits $ 15,040,450 $ 15,062,527 - % $ 14,333,912 5 %

FHLB advances 300,000 200,000 50 % 250,000 20 %

Convertible 216,209 215,974 - % 204,565 6 %notes, net

Subordinated 105,354 105,057 - % 104,178 1 %debentures

Accruedinterest 4,272 5,367 (20 )% 14,706 (71 )%payable

Other 129,793 135,703 (4 )% 145,558 (11 )%liabilities

Total 15,796,078 15,724,628 - % 15,052,919 5 %liabilities



Stockholders' Equity

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

Capital 1,421,698 1,420,151 - % 1,434,916 (1 )%surplus

Retained 932,561 897,766 4 % 785,940 19 %earnings

Treasurystock, at (250,000 ) (247,198 ) 1 % (200,000 ) 25 %cost

Accumulatedothercomprehensive (11,412 ) 3,543 N/A 32,753 N/A (loss) gain,net

Totalstockholders' 2,092,983 2,074,398 1 % 2,053,745 2 %equity

Totalliabilitiesand $ 17,889,061 $ 17,799,026 1 % $ 17,106,664 5 %stockholders'equity



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

Common stockshares - 120,006,452 120,198,061 123,264,864 outstanding

Treasury 16,343,849 16,149,007 12,661,581 stock shares

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

Twelve Months Ended

12/31/2021

9/30/2021

% change

12/31/2020

% change

12/31/2021

12/31/2020

% change

Interest and fees on loans

$

133,821

$

132,794

1

%

$

132,117

1

%

$

528,174

$

554,967

(5

)%

Interest on securities

10,657

9,207

16

%

9,014

18

%

35,492

39,362

(10

)%

Interest on federal funds sold and other investments

691

865

(20

)%

598

16

%

2,866

4,549

(37

)%

Total interest income

145,169

142,866

2

%

141,729

2

%

566,532

598,878

(5

)%

Interest on deposits

8,905

9,640

(8

)%

16,934

(47

)%

42,011

110,369

(62

)%

Interest on other borrowings and convertible notes

2,946

2,930

1

%

4,039

(27

)%

11,751

21,011

(44

)%

Total interest expense

11,851

12,570

(6

)%

20,973

(43

)%

53,762

131,380

(59

)%

Net interest income before provision (credit) for credit losses

133,318

130,296

2

%

120,756

10

%

512,770

467,498

10

%

Provision (credit) for credit losses

1,500

(10,000

)

N/A

27,500

(95

)%

(12,200

)

95,000

N/A

Net interest income after provision (credit) for credit losses

131,818

140,296

(6

)%

93,256

41

%

524,970

372,498

41

%

Service fees on deposit accounts

1,894

1,814

4

%

2,991

(37

)%

7,275

12,443

(42

)%

International service fees

1,061

889

19

%

696

52

%

3,586

3,139

14

%

Loan servicing fees, net

747

642

16

%

566

32

%

3,367

2,809

20

%

Wire transfer fees

916

836

10

%

867

6

%

3,519

3,577

(2

)%

Net gains on sales of SBA loans

3,614

2,459

47

%

-

100

%

8,448

-

100

%

Net gains on sales of residential mortgage loans

530

781

(32

)%

1,618

(67

)%

4,435

8,004

(45

)%

Net gains on sales of securities available for sale

-

-

-

%

-

-

%

-

7,531

(100

)%

Other income and fees

4,335

3,196

36

%

4,677

(7

)%

12,964

15,929

(19

)%

Total noninterest income

13,097

10,617

23

%

11,415

15

%

43,594

53,432

(18

)%

Salaries and employee benefits

44,608

47,018

(5

)%

40,911

9

%

175,151

162,922

8

%

Occupancy

7,391

7,473

(1

)%

7,200

3

%

28,898

28,917

-

%

Furniture and equipment

4,642

4,429

5

%

4,122

13

%

18,079

17,548

3

%

Advertising and marketing

2,329

2,656

(12

)%

1,695

37

%

8,707

6,284

39

%

Data processing and communications

2,789

2,394

16

%

2,235

25

%

10,331

9,344

11

%

Professional fees

2,439

2,431

-

%

1,847

32

%

12,168

8,170

49

%

FDIC assessment

1,366

1,204

13

%

1,166

17

%

5,109

5,544

(8

)%

Credit related expenses

873

1,266

(31

)%

2,001

(56

)%

4,400

6,817

(35

)%

OREO expense (income), net

811

248

227

%

(86

)

N/A

1,638

3,865

(58

)%

Software impairment

-

-

-

%

-

-

%

2,146

-

100

%

FHLB advance prepayment fee

-

-

-

%

-

-

%

-

3,584

(100

)%

Branch restructuring costs

-

-

-

%

2,367

(100

)%

-

2,367

(100

)%

Other

6,988

6,383

9

%

7,605

(8

)%

26,665

28,277

(6

)%

Total noninterest expense

74,236

75,502

(2

)%

71,063

4

%

293,292

283,639

3

%

Income before income taxes

70,679

75,411

(6

)%

33,608

110

%

275,272

142,291

93

%

Income tax provision

19,056

19,912

(4

)%

5,289

260

%

70,700

30,776

130

%

Net income

$

51,623

$

55,499

(7

)%

$

28,319

82

%

$

204,572

$

111,515

83

%

Earnings per Common Share - Basic

$

0.43

$

0.45

$

0.23

$

1.67

$

0.90

Earnings per Common Share - Diluted

$

0.43

$

0.45

$

0.23

$

1.66

$

0.90

Weighted Average Shares Outstanding - Basic

120,160,300

122,244,948

123,264,172

122,321,768

123,501,401

Weighted Average Shares Outstanding - Diluted

121,025,925

122,908,536

123,874,229

123,133,025

123,889,343

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended Twelve Months Ended

12/31/2021 9/30/2021 % 12/31/2020 % 12/31/2021 12/31/2020 % change change change



Interest and $ 133,821 $ 132,794 1 % $ 132,117 1 % $ 528,174 $ 554,967 (5 )fees on loans %

Interest on 10,657 9,207 16 % 9,014 18 % 35,492 39,362 (10 )securities %

Interest onfederal funds 691 865 (20 )% 598 16 % 2,866 4,549 (37 )sold and other %investments

Total interest 145,169 142,866 2 % 141,729 2 % 566,532 598,878 (5 )income %



Interest on 8,905 9,640 (8 )% 16,934 (47 ) 42,011 110,369 (62 )deposits % %

Interest onother ) )borrowings and 2,946 2,930 1 % 4,039 (27 % 11,751 21,011 (44 %convertiblenotes

Total interest 11,851 12,570 (6 )% 20,973 (43 ) 53,762 131,380 (59 )expense % %



Net interestincome beforeprovision 133,318 130,296 2 % 120,756 10 % 512,770 467,498 10 %(credit) forcredit losses

Provision )(credit) for 1,500 (10,000 ) N/A 27,500 (95 % (12,200 ) 95,000 N/Acredit losses

Net interestincome afterprovision 131,818 140,296 (6 )% 93,256 41 % 524,970 372,498 41 %(credit) forcredit losses



Service fees ) )on deposit 1,894 1,814 4 % 2,991 (37 % 7,275 12,443 (42 %accounts

International 1,061 889 19 % 696 52 % 3,586 3,139 14 %service fees

Loan servicing 747 642 16 % 566 32 % 3,367 2,809 20 %fees, net

Wire transfer 916 836 10 % 867 6 % 3,519 3,577 (2 )fees %

Net gains onsales of SBA 3,614 2,459 47 % - 100 % 8,448 - 100 %loans

Net gains onsales of 530 781 (32 )% 1,618 (67 ) 4,435 8,004 (45 )residential % %mortgage loans

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

Other income 4,335 3,196 36 % 4,677 (7 ) 12,964 15,929 (19 )and fees % %

Total )noninterest 13,097 10,617 23 % 11,415 15 % 43,594 53,432 (18 %income



Salaries andemployee 44,608 47,018 (5 )% 40,911 9 % 175,151 162,922 8 %benefits

Occupancy 7,391 7,473 (1 )% 7,200 3 % 28,898 28,917 - %

Furniture and 4,642 4,429 5 % 4,122 13 % 18,079 17,548 3 %equipment

Advertising 2,329 2,656 (12 )% 1,695 37 % 8,707 6,284 39 %and marketing

Dataprocessing and 2,789 2,394 16 % 2,235 25 % 10,331 9,344 11 %communications

Professional 2,439 2,431 - % 1,847 32 % 12,168 8,170 49 %fees

FDIC 1,366 1,204 13 % 1,166 17 % 5,109 5,544 (8 )assessment %

Credit related 873 1,266 (31 )% 2,001 (56 ) 4,400 6,817 (35 )expenses % %

OREO expense 811 248 227 % (86 ) N/A 1,638 3,865 (58 )(income), net %

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

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

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

Other 6,988 6,383 9 % 7,605 (8 ) 26,665 28,277 (6 ) % %

Totalnoninterest 74,236 75,502 (2 )% 71,063 4 % 293,292 283,639 3 %expense

Income before 70,679 75,411 (6 )% 33,608 110 % 275,272 142,291 93 %income taxes

Income tax 19,056 19,912 (4 )% 5,289 260 % 70,700 30,776 130 %provision

Net income $ 51,623 $ 55,499 (7 )% $ 28,319 82 % $ 204,572 $ 111,515 83 %



Earnings perCommon Share - $ 0.43 $ 0.45 $ 0.23 $ 1.67 $ 0.90 Basic

Earnings perCommon Share - $ 0.43 $ 0.45 $ 0.23 $ 1.66 $ 0.90 Diluted



WeightedAverage Shares 120,160,300 122,244,948 123,264,172 122,321,768 123,501,401 Outstanding -Basic

WeightedAverage Shares 121,025,925 122,908,536 123,874,229 123,133,025 123,889,343 Outstanding -Diluted

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

At or for the Three Months Ended(Annualized)

At or for the Twelve Months Ended

Profitability measures:

12/31/2021

9/30/2021

12/31/2020

12/31/2021

12/31/2020

ROA

1.16

%

1.25

%

0.67

%

1.17

%

0.68

%

ROE

9.93

%

10.61

%

5.54

%

9.88

%

5.49

%

ROTCE (1)

12.85

%

13.71

%

7.21

%

12.80

%

7.16

%

Net interest margin

3.13

%

3.07

%

3.02

%

3.09

%

3.00

%

Efficiency ratio

50.70

%

53.58

%

53.77

%

52.72

%

54.45

%

Noninterest expense / average assets

1.67

%

1.70

%

1.69

%

1.68

%

1.72

%

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

Three Months Ended

Twelve Months Ended

Pre-tax acquisition accounting adjustments

12/31/2021

9/30/2021

12/31/2020

12/31/2021

12/31/2020

Accretion on acquired loans

$

283

$

368

$

452

$

1,722

$

2,916

Accretion on acquired credit deteriorated loans

1,667

2,093

3,064

8,203

20,143

Amortization of premium on low income housing tax credits

(73

)

(73

)

(71

)

(293

)

(283

)

Accretion of discount on acquired subordinated debt

(296

)

(295

)

(289

)

(1,175

)

(1,143

)

Amortization of core deposit intangibles

(509

)

(509

)

(531

)

(2,037

)

(2,125

)

Total acquisition accounting adjustments

$

1,072

$

1,584

$

2,625

$

6,420

$

19,508

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

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

Profitability 12/31/ 9/30/2021 12/31/ 12/31/2021 12/31/2020measures: 2021 2020

ROA 1.16 % 1.25 % 0.67 % 1.17 % 0.68 %

ROE 9.93 % 10.61 % 5.54 % 9.88 % 5.49 %

ROTCE ^(1) 12.85 % 13.71 % 7.21 % 12.80 % 7.16 %

Net interest margin 3.13 % 3.07 % 3.02 % 3.09 % 3.00 %

Efficiency ratio 50.70 % 53.58 % 53.77 % 52.72 % 54.45 %

Noninterest expense 1.67 % 1.70 % 1.69 % 1.68 % 1.72 %/ average assets



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





Three Months Ended Twelve Months Ended

Pre-tax acquisition 12/31/ 12/31/accounting 2021 9/30/2021 2020 12/31/2021 12/31/2020adjustments

Accretion on $ 283 $ 368 $ 452 $ 1,722 $ 2,916 acquired loans

Accretion onacquired credit 1,667 2,093 3,064 8,203 20,143 deteriorated loans

Amortization ofpremium on low (73 ) (73 ) (71 ) (293 ) (283 )income housing taxcredits

Accretion ofdiscount on (296 ) (295 ) (289 ) (1,175 ) (1,143 )acquiredsubordinated debt

Amortization ofcore deposit (509 ) (509 ) (531 ) (2,037 ) (2,125 )intangibles

Total acquisitionaccounting $ 1,072 $ 1,584 $ 2,625 $ 6,420 $ 19,508 adjustments



Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

12/31/2021

9/30/2021

12/31/2020

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

$

13,447,009

$

133,821

3.95

%

$

13,286,382

$

132,794

3.97

%

$

13,046,443

$

132,117

4.03

%

Securities available for sale

2,674,903

10,657

1.58

%

2,370,672

9,207

1.54

%

2,123,025

9,014

1.69

%

FHLB stock and other investments

773,579

691

0.35

%

1,197,537

865

0.29

%

749,281

598

0.32

%

Total interest earning assets

$

16,895,491

$

145,169

3.41

%

$

16,854,591

$

142,866

3.36

%

$

15,918,749

$

141,729

3.54

%

INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest bearing

$

5,961,363

$

5,522

0.37

%

$

5,919,225

$

5,946

0.40

%

$

4,910,649

$

5,541

0.45

%

Savings

316,758

946

1.18

%

310,525

920

1.18

%

305,341

898

1.17

%

Time deposits

2,823,613

2,437

0.34

%

2,914,977

2,774

0.38

%

4,240,500

10,495

0.98

%

Total interest bearing deposits

9,101,734

8,905

0.39

%

9,144,727

9,640

0.42

%

9,456,490

16,934

0.71

%

FHLB advances

216,882

648

1.19

%

200,000

640

1.27

%

204,900

657

1.28

%

Convertible notes, net

216,078

1,322

2.39

%

215,840

1,321

2.39

%

203,807

2,383

4.58

%

Subordinated debentures

101,295

976

3.77

%

100,993

969

3.75

%

100,118

999

3.90

%

Total interest bearing liabilities

9,635,989

$

11,851

0.49

%

9,661,560

$

12,570

0.52

%

9,965,315

$

20,973

0.84

%

Noninterest bearing demand deposits

5,967,251

5,848,983

4,637,584

Total funding liabilities/cost of funds

$

15,603,240

0.30

%

$

15,510,543

0.32

%

$

14,602,899

0.57

%

Net interest income/net interest spread

$

133,318

2.92

%

$

130,296

2.84

%

$

120,756

2.70

%

Net interest margin

3.13

%

3.07

%

3.02

%

Cost of deposits:

Noninterest bearing demand deposits

$

5,967,251

$

-

-

%

$

5,848,983

$

-

-

%

$

4,637,584

$

-

-

%

Interest bearing deposits

9,101,734

8,905

0.39

%

9,144,727

9,640

0.42

%

9,456,490

16,934

0.71

%

Total deposits

$

15,068,985

$

8,905

0.23

%

$

14,993,710

$

9,640

0.26

%

$

14,094,074

$

16,934

0.48

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

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

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 $ 13,447,009 $ 133,821 3.95 % $ 13,286,382 $ 132,794 3.97 % $ 13,046,443 $ 132,117 4.03 %held for sale

Securitiesavailable for 2,674,903 10,657 1.58 % 2,370,672 9,207 1.54 % 2,123,025 9,014 1.69 %sale

FHLB stock andother 773,579 691 0.35 % 1,197,537 865 0.29 % 749,281 598 0.32 %investments

Total interest $ 16,895,491 $ 145,169 3.41 % $ 16,854,591 $ 142,866 3.36 % $ 15,918,749 $ 141,729 3.54 %earning assets



INTERESTBEARING LIABILITIES:

Deposits:

Demand,interest $ 5,961,363 $ 5,522 0.37 % $ 5,919,225 $ 5,946 0.40 % $ 4,910,649 $ 5,541 0.45 %bearing

Savings 316,758 946 1.18 % 310,525 920 1.18 % 305,341 898 1.17 %

Time deposits 2,823,613 2,437 0.34 % 2,914,977 2,774 0.38 % 4,240,500 10,495 0.98 %

Total interestbearing 9,101,734 8,905 0.39 % 9,144,727 9,640 0.42 % 9,456,490 16,934 0.71 %deposits

FHLB advances 216,882 648 1.19 % 200,000 640 1.27 % 204,900 657 1.28 %

Convertible 216,078 1,322 2.39 % 215,840 1,321 2.39 % 203,807 2,383 4.58 %notes, net

Subordinated 101,295 976 3.77 % 100,993 969 3.75 % 100,118 999 3.90 %debentures

Total interestbearing 9,635,989 $ 11,851 0.49 % 9,661,560 $ 12,570 0.52 % 9,965,315 $ 20,973 0.84 %liabilities

Noninterestbearing demand 5,967,251 5,848,983 4,637,584 deposits

Total fundingliabilities/ $ 15,603,240 0.30 % $ 15,510,543 0.32 % $ 14,602,899 0.57 %cost of funds

Net interestincome/net $ 133,318 2.92 % $ 130,296 2.84 % $ 120,756 2.70 %interest spread

Net interest 3.13 % 3.07 % 3.02 %margin



Cost of deposits:

Noninterestbearing demand $ 5,967,251 $ - - % $ 5,848,983 $ - - % $ 4,637,584 $ - - %deposits

Interestbearing 9,101,734 8,905 0.39 % 9,144,727 9,640 0.42 % 9,456,490 16,934 0.71 %deposits

Total deposits $ 15,068,985 $ 8,905 0.23 % $ 14,993,710 $ 9,640 0.26 % $ 14,094,074 $ 16,934 0.48 %

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Twelve Months Ended

12/31/2021

12/31/2020

Interest

Interest

Average

Income/

Average

Average

Income/

Average

Balance

Expense

Yield/Cost

Balance

Expense

Yield/Cost

INTEREST EARNING ASSETS:

Loans, including loans held for sale

$

13,343,431

$

528,174

3.96

%

$

12,698,523

$

554,967

4.37

%

Securities available for sale

2,392,589

35,492

1.48

%

1,899,948

39,362

2.07

%

FHLB stock and other investments

844,010

2,866

0.34

%

982,419

4,549

0.46

%

Total interest earning assets

$

16,580,030

$

566,532

3.42

%

$

15,580,890

$

598,878

3.84

%

INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest bearing

$

5,657,958

$

22,867

0.40

%

$

4,729,438

$

34,529

0.73

%

Savings

309,295

3,623

1.17

%

291,655

3,475

1.19

%

Time deposits

3,178,722

15,521

0.49

%

4,698,503

72,365

1.54

%

Total interest bearing deposits

9,145,975

42,011

0.46

%

9,719,596

110,369

1.14

%

FHLB advances

208,721

2,561

1.23

%

435,836

6,865

1.58

%

Convertible notes, net

215,633

5,289

2.42

%

201,859

9,457

4.61

%

Subordinated debentures

100,848

3,901

3.82

%

99,682

4,689

4.63

%

Total interest bearing liabilities

9,671,177

$

53,762

0.56

%

10,456,973

$

131,380

1.26

%

Noninterest bearing demand deposits

5,581,803

3,840,935

Total funding liabilities/cost of funds

$

15,252,980

0.35

%

$

14,297,908

0.92

%

Net interest income/net interest spread

$

512,770

2.86

%

$

467,498

2.58

%

Net interest margin

3.09

%

3.00

%

Cost of deposits:

Noninterest bearing demand deposits

$

5,581,803

$

-

-

%

$

3,840,935

$

-

-

%

Interest bearing deposits

9,145,975

42,011

0.46

%

9,719,596

110,369

1.14

%

Total deposits

$

14,727,778

$

42,011

0.29

%

$

13,560,531

$

110,369

0.81

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Twelve Months Ended

12/31/2021 12/31/2020

Interest Interest

Average Income/ Average Average Income/ Average

Balance Expense Yield/ Balance Expense Yield/ Cost Cost

INTERESTEARNING ASSETS:

Loans,including $ 13,343,431 $ 528,174 3.96 % $ 12,698,523 $ 554,967 4.37 %loans heldfor sale

Securitiesavailable 2,392,589 35,492 1.48 % 1,899,948 39,362 2.07 %for sale

FHLB stockand other 844,010 2,866 0.34 % 982,419 4,549 0.46 %investments

Totalinterest $ 16,580,030 $ 566,532 3.42 % $ 15,580,890 $ 598,878 3.84 %earningassets



INTERESTBEARING LIABILITIES:

Deposits:

Demand,interest $ 5,657,958 $ 22,867 0.40 % $ 4,729,438 $ 34,529 0.73 %bearing

Savings 309,295 3,623 1.17 % 291,655 3,475 1.19 %

Time 3,178,722 15,521 0.49 % 4,698,503 72,365 1.54 %deposits

Totalinterest 9,145,975 42,011 0.46 % 9,719,596 110,369 1.14 %bearingdeposits

FHLB 208,721 2,561 1.23 % 435,836 6,865 1.58 %advances

Convertible 215,633 5,289 2.42 % 201,859 9,457 4.61 %notes, net

Subordinated 100,848 3,901 3.82 % 99,682 4,689 4.63 %debentures

Totalinterest 9,671,177 $ 53,762 0.56 % 10,456,973 $ 131,380 1.26 %bearingliabilities

Noninterestbearing 5,581,803 3,840,935 demanddeposits

Totalfundingliabilities/ $ 15,252,980 0.35 % $ 14,297,908 0.92 %cost offunds

Net interestincome/net $ 512,770 2.86 % $ 467,498 2.58 %interestspread

Net interest 3.09 % 3.00 %margin



Cost of deposits:

Noninterestbearing $ 5,581,803 $ - - % $ 3,840,935 $ - - %demanddeposits

Interestbearing 9,145,975 42,011 0.46 % 9,719,596 110,369 1.14 %deposits

Total $ 14,727,778 $ 42,011 0.29 % $ 13,560,531 $ 110,369 0.81 %deposits

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

Twelve Months Ended

AVERAGE BALANCES:

12/31/2021

9/30/2021

% change

12/31/2020

% change

12/31/2021

12/31/2020

% change

Loans receivable, including loans held for sale

$

13,447,009

$

13,286,382

1

%

$

13,046,443

3

%

$

13,343,431

$

12,698,523

5

%

Securities, FHLB stock, and other

3,448,482

3,568,209

(3

)%

2,872,306

20

%

3,236,599

2,882,367

12

%

Interest earning assets

16,895,491

16,854,591

-

%

15,918,749

6

%

16,580,030

15,580,890

6

%

Total assets

17,834,345

17,745,066

1

%

16,824,700

6

%

17,467,665

16,515,102

6

%

Interest bearing deposits

9,101,734

9,144,727

-

%

9,456,490

(4

)%

9,145,975

9,719,596

(6

)%

Interest bearing liabilities

9,635,989

9,661,560

-

%

9,965,315

(3

)%

9,671,177

10,456,973

(8

)%

Noninterest bearing demand deposits

5,967,251

5,848,983

2

%

4,637,584

29

%

5,581,803

3,840,935

45

%

Stockholders' equity

2,079,694

2,092,018

(1

)%

2,045,959

2

%

2,071,453

2,032,570

2

%

Net interest earning assets

7,259,502

7,193,031

1

%

5,953,434

22

%

6,908,853

5,123,917

35

%

LOAN PORTFOLIO COMPOSITION:

12/31/2021

9/30/2021

% change

12/31/2020

% change

Commercial loans

$

4,208,674

$

3,857,879

9

%

$

4,157,787

1

%

Real estate loans

9,105,931

8,908,657

2

%

8,772,134

4

%

Consumer and other loans

638,138

652,155

(2

)%

633,292

1

%

Loans, net of deferred loan fees and costs

13,952,743

13,418,691

4

%

13,563,213

3

%

Allowance for credit losses

(140,550

)

(136,774

)

(3

)%

(206,741

)

32

%

Loans receivable, net

$

13,812,193

$

13,281,917

4

%

$

13,356,472

3

%

REAL ESTATE LOANS BY PROPERTY TYPE:

12/31/2021

9/30/2021

% change

12/31/2020

% change

Retail buildings

$

2,522,976

$

2,466,881

2

%

$

2,293,396

10

%

Hotels/motels

1,308,405

1,385,003

(6

)%

1,634,287

(20

)%

Gas stations/car washes

1,050,730

999,069

5

%

892,110

18

%

Mixed-use facilities

854,793

819,516

4

%

750,867

14

%

Warehouses

1,244,339

1,160,863

7

%

1,091,389

14

%

Multifamily

744,068

691,262

8

%

518,498

44

%

Other

1,380,620

1,386,063

-

%

1,591,587

(13

)%

Total

$

9,105,931

$

8,908,657

2

%

$

8,772,134

4

%

DEPOSIT COMPOSITION:

12/31/2021

9/30/2021

% change

12/31/2020

% change

Noninterest bearing demand deposits

$

5,751,870

$

6,007,586

(4

)%

$

4,814,254

19

%

Money market and other

6,178,850

5,871,567

5

%

5,232,413

18

%

Saving deposits

321,377

314,603

2

%

300,770

7

%

Time deposits

2,788,353

2,868,771

(3

)%

3,986,475

(30

)%

Total deposit balances

$

15,040,450

$

15,062,527

-

%

$

14,333,912

5

%

DEPOSIT COMPOSITION (%):

12/31/2021

9/30/2021

12/31/2020

Noninterest bearing demand deposits

38.3

%

39.9

%

33.6

%

Money market and other

41.1

%

39.0

%

36.5

%

Saving deposits

2.1

%

2.1

%

2.1

%

Time deposits

18.5

%

19.0

%

27.8

%

Total deposit balances

100.0

%

100.0

%

100.0

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended Twelve Months Ended

AVERAGE 12/31/2021 9/30/2021 % 12/31/2020 % 12/31/2021 12/31/2020 %BALANCES: change change change

Loansreceivable,including $ 13,447,009 $ 13,286,382 1 % $ 13,046,443 3 % $ 13,343,431 $ 12,698,523 5 %loans held forsale

Securities,FHLB stock, 3,448,482 3,568,209 (3 )% 2,872,306 20 % 3,236,599 2,882,367 12 %and other

Interest 16,895,491 16,854,591 - % 15,918,749 6 % 16,580,030 15,580,890 6 %earning assets

Total assets 17,834,345 17,745,066 1 % 16,824,700 6 % 17,467,665 16,515,102 6 %



Interestbearing 9,101,734 9,144,727 - % 9,456,490 (4 )% 9,145,975 9,719,596 (6 )%deposits

Interestbearing 9,635,989 9,661,560 - % 9,965,315 (3 )% 9,671,177 10,456,973 (8 )%liabilities

Noninterestbearing demand 5,967,251 5,848,983 2 % 4,637,584 29 % 5,581,803 3,840,935 45 %deposits

Stockholders' 2,079,694 2,092,018 (1 )% 2,045,959 2 % 2,071,453 2,032,570 2 %equity

Net interest 7,259,502 7,193,031 1 % 5,953,434 22 % 6,908,853 5,123,917 35 %earning assets



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

Commercial $ 4,208,674 $ 3,857,879 9 % $ 4,157,787 1 % loans

Real estate 9,105,931 8,908,657 2 % 8,772,134 4 % loans

Consumer and 638,138 652,155 (2 )% 633,292 1 % other loans

Loans, net ofdeferred loan 13,952,743 13,418,691 4 % 13,563,213 3 % fees and costs

Allowance for (140,550 ) (136,774 ) (3 )% (206,741 ) 32 % credit losses

Loansreceivable, $ 13,812,193 $ 13,281,917 4 % $ 13,356,472 3 % net



REAL ESTATE % %LOANS BY 12/31/2021 9/30/2021 change 12/31/2020 change PROPERTY TYPE:

Retail $ 2,522,976 $ 2,466,881 2 % $ 2,293,396 10 % buildings

Hotels/motels 1,308,405 1,385,003 (6 )% 1,634,287 (20 )%

Gas stations/ 1,050,730 999,069 5 % 892,110 18 % car washes

Mixed-use 854,793 819,516 4 % 750,867 14 % facilities

Warehouses 1,244,339 1,160,863 7 % 1,091,389 14 %

Multifamily 744,068 691,262 8 % 518,498 44 %

Other 1,380,620 1,386,063 - % 1,591,587 (13 )%

Total $ 9,105,931 $ 8,908,657 2 % $ 8,772,134 4 %



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

Noninterestbearing demand $ 5,751,870 $ 6,007,586 (4 )% $ 4,814,254 19 % deposits

Money market 6,178,850 5,871,567 5 % 5,232,413 18 % and other

Saving 321,377 314,603 2 % 300,770 7 % deposits

Time deposits 2,788,353 2,868,771 (3 )% 3,986,475 (30 )%

Total deposit $ 15,040,450 $ 15,062,527 - % $ 14,333,912 5 % balances



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

Noninterestbearing demand 38.3 % 39.9 % 33.6 % deposits

Money market 41.1 % 39.0 % 36.5 % and other

Saving 2.1 % 2.1 % 2.1 % deposits

Time deposits 18.5 % 19.0 % 27.8 %

Total deposit balances 100.0 % 100.0 % 100.0 %

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

CAPITAL RATIOS:

12/31/2021

9/30/2021

12/31/2020

Total stockholders' equity

$

2,092,983

$

2,074,398

$

2,053,745

Common equity tier 1 ratio

11.03

%

11.01

%

10.94

%

Tier 1 risk-based capital ratio

11.70

%

11.70

%

11.64

%

Total risk-based capital ratio

12.42

%

12.42

%

12.87

%

Tier 1 leverage ratio

10.11

%

9.98

%

10.22

%

Total risk weighted assets

$

15,036,292

$

14,737,809

$

14,341,456

Book value per common share

$

17.44

$

17.26

$

16.66

Tangible common equity to tangible assets (1)

9.31

%

9.24

%

9.50

%

Tangible common equity per share (1)

$

13.51

$

13.33

$

12.81

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

Three Months Ended

Twelve Months Ended

ALLOWANCE FOR CREDIT LOSSES CHANGES:

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

12/31/2021

12/31/2020

Balance at beginning of period

$

136,774

$

189,452

$

207,943

$

206,741

$

179,849

$

206,741

$

94,144

CECL day 1 adoption impact

-

-

-

-

-

-

26,200

Provision (credit) for credit losses

1,500

(10,000

)

(7,000

)

3,300

27,500

(12,200

)

95,000

Recoveries

3,615

1,906

1,301

1,423

2,207

8,245

7,423

Charge offs

(1,339

)

(44,584

)

(12,792

)

(3,521

)

(2,815

)

(62,236

)

(16,026

)

Balance at end of period

$

140,550

$

136,774

$

189,452

$

207,943

$

206,741

$

140,550

$

206,741

Net (recoveries) charge offs /

average loans receivable (annualized)

(0.07

)%

1.28

%

0.35

%

0.06

%

0.02

%

0.40

%

0.07

%

Three Months Ended

Twelve Months Ended

NET (RECOVERIES) CHARGE OFFS:

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

12/31/2021

12/31/2020

Real estate loans

$

(2,352

)

$

40,542

$

11,281

$

2,234

$

(726

)

$

51,705

$

6,806

Commercial loans

144

1,117

181

(80

)

1,167

1,362

632

Consumer loans

(68

)

1,019

29

(56

)

167

924

1,165

Total net (recoveries) charge offs

$

(2,276

)

$

42,678

$

11,491

$

2,098

$

608

$

53,991

$

8,603

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



CAPITAL 12/31/2021 9/30/2021 12/31/2020 RATIOS:

Totalstockholders' $ 2,092,983 $ 2,074,398 $ 2,053,745 equity

Common equity 11.03 % 11.01 % 10.94 % tier 1 ratio

Tier 1risk-based 11.70 % 11.70 % 11.64 % capital ratio

Totalrisk-based 12.42 % 12.42 % 12.87 % capital ratio

Tier 1leverage 10.11 % 9.98 % 10.22 % ratio

Total riskweighted $ 15,036,292 $ 14,737,809 $ 14,341,456 assets

Book valueper common $ 17.44 $ 17.26 $ 16.66 share

Tangiblecommon equity 9.31 % 9.24 % 9.50 % to tangibleassets ^(1)

Tangiblecommon equity $ 13.51 $ 13.33 $ 12.81 per share ^(1)



^(1) Tangible common equity to tangible assets is a non-GAAP financial measurethat 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 evaluatingthe Company's capital levels and has included this ratio in response to marketparticipant interest in tangible common equity as a measure of capital.



Three Months Ended Twelve Months Ended

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

Balance atbeginning of $ 136,774 $ 189,452 $ 207,943 $ 206,741 $ 179,849 $ 206,741 $ 94,144 period

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

Provision(credit) for 1,500 (10,000 ) (7,000 ) 3,300 27,500 (12,200 ) 95,000 credit losses

Recoveries 3,615 1,906 1,301 1,423 2,207 8,245 7,423

Charge offs (1,339 ) (44,584 ) (12,792 ) (3,521 ) (2,815 ) (62,236 ) (16,026 )

Balance at $ 140,550 $ 136,774 $ 189,452 $ 207,943 $ 206,741 $ 140,550 $ 206,741 end of period

Net(recoveries)charge offs / ) (0.07 % 1.28 % 0.35 % 0.06 % 0.02 % 0.40 % 0.07 %average loansreceivable(annualized)



Three Months Ended Twelve Months Ended

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

Real estate $ (2,352 ) $ 40,542 $ 11,281 $ 2,234 $ (726 ) $ 51,705 $ 6,806 loans

Commercial 144 1,117 181 (80 ) 1,167 1,362 632 loans

Consumer (68 ) 1,019 29 (56 ) 167 924 1,165 loans

Total net(recoveries) $ (2,276 ) $ 42,678 $ 11,491 $ 2,098 $ 608 $ 53,991 $ 8,603 charge offs



Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

NONPERFORMING ASSETS:12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

Loans on nonaccrual status (1)

$

54,616

$

54,380

$

111,008

$

109,858

$

85,238

Delinquent loans 90 days or more on accrual status

2,131

4,567

4,759

384

614

Accruing troubled debt restructured loans

52,418

39,509

51,360

41,773

37,354

Total nonperforming loans

109,165

98,456

167,127

152,015

123,206

Other real estate owned

2,597

15,213

16,619

18,515

20,121

Total nonperforming assets

$

111,762

$

113,669

$

183,746

$

170,530

$

143,327

Nonperforming assets/total assets

0.62

%

0.64

%

1.05

%

0.99

%

0.84

%

Nonperforming assets/loans receivable & OREO

0.80

%

0.85

%

1.37

%

1.24

%

1.06

%

Nonperforming assets/total capital

5.34

%

5.48

%

8.78

%

8.34

%

6.98

%

Nonperforming loans/loans receivable

0.78

%

0.73

%

1.24

%

1.11

%

0.91

%

Nonaccrual loans/loans receivable

0.39

%

0.41

%

0.83

%

0.80

%

0.63

%

Allowance for credit losses/loans receivable

1.01

%

1.02

%

1.41

%

1.52

%

1.52

%

Allowance for credit losses/nonaccrual loans

257.34

%

251.52

%

170.67

%

189.28

%

242.55

%

Allowance for credit losses/nonperforming loans

128.75

%

138.92

%

113.36

%

136.79

%

167.80

%

Allowance for credit losses/nonperforming assets

125.76

%

120.33

%

103.11

%

121.94

%

144.24

%

(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $19.5 million, $20.6 million, $23.6 million, $25.0 million, and $26.5 million, at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

NONACCRUAL LOANS BY TYPE:

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

Real estate loans

$

39,756

$

41,673

$

95,622

$

91,940

$

67,450

Commercial loans

11,025

10,991

12,217

14,080

13,911

Consumer loans

3,835

1,716

3,169

3,838

3,877

Total nonaccrual loans

$

54,616

$

54,380

$

111,008

$

109,858

$

85,238

BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

Retail buildings

$

28,483

$

11,280

$

12,110

$

6,319

$

5,408

Hotels/motels

472

-

-

-

-

Gas stations/car washes

197

202

206

210

219

Mixed-use facilities

2,846

7,937

7,967

3,377

3,521

Warehouses

5,366

4,908

14,099

14,124

7,296

Other (2)

15,054

15,182

16,978

17,743

20,910

Total

$

52,418

$

39,509

$

51,360

$

41,773

$

37,354

(2) Includes commercial business, consumer and other loans

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

NONPERFORMING 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020ASSETS:Loans onnonaccrual $ 54,616 $ 54,380 $ 111,008 $ 109,858 $ 85,238 status ^(1)

Delinquentloans 90 daysor more on 2,131 4,567 4,759 384 614 accrualstatus

Accruingtroubled debt 52,418 39,509 51,360 41,773 37,354 restructuredloans

Totalnonperforming 109,165 98,456 167,127 152,015 123,206 loans

Other real 2,597 15,213 16,619 18,515 20,121 estate owned

Totalnonperforming $ 111,762 $ 113,669 $ 183,746 $ 170,530 $ 143,327 assets

Nonperformingassets/total 0.62 % 0.64 % 1.05 % 0.99 % 0.84 %assets

Nonperformingassets/loans 0.80 % 0.85 % 1.37 % 1.24 % 1.06 %receivable &OREO

Nonperformingassets/total 5.34 % 5.48 % 8.78 % 8.34 % 6.98 %capital

Nonperformingloans/loans 0.78 % 0.73 % 1.24 % 1.11 % 0.91 %receivable

Nonaccrualloans/loans 0.39 % 0.41 % 0.83 % 0.80 % 0.63 %receivable

Allowance forcredit losses 1.01 % 1.02 % 1.41 % 1.52 % 1.52 %/loansreceivable

Allowance forcredit losses 257.34 % 251.52 % 170.67 % 189.28 % 242.55 %/nonaccrualloans

Allowance forcredit losses/ 128.75 % 138.92 % 113.36 % 136.79 % 167.80 %nonperformingloans

Allowance forcredit losses/ 125.76 % 120.33 % 103.11 % 121.94 % 144.24 %nonperformingassets



^(1) Excludes delinquent SBA loans that are guaranteed and currently inliquidation totaling $19.5 million, $20.6 million, $23.6 million, $25.0million, and $26.5 million, at December 31, 2021, September 30, 2021, June 30,2021, March 31, 2021, and December 31, 2020, respectively.



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

Real estate $ 39,756 $ 41,673 $ 95,622 $ 91,940 $ 67,450 loans

Commercial 11,025 10,991 12,217 14,080 13,911 loans

Consumer 3,835 1,716 3,169 3,838 3,877 loans

Totalnonaccrual $ 54,616 $ 54,380 $ 111,008 $ 109,858 $ 85,238 loans



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

Retail $ 28,483 $ 11,280 $ 12,110 $ 6,319 $ 5,408 buildings

Hotels/motels 472 - - - -

Gas stations/ 197 202 206 210 219 car washes

Mixed-use 2,846 7,937 7,967 3,377 3,521 facilities

Warehouses 5,366 4,908 14,099 14,124 7,296

Other ^(2) 15,054 15,182 16,978 17,743 20,910

Total $ 52,418 $ 39,509 $ 51,360 $ 41,773 $ 37,354



^(2) Includes commercial business, consumer and other loans



Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

30 - 59 days

$

29,723

$

15,016

$

22,466

$

18,175

$

11,347

60 - 89 days

10,345

4,746

6,987

8,314

16,826

Total

$

40,068

$

19,762

$

29,453

$

26,489

$

28,173

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

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

Real estate loans

$

20,232

$

10,359

$

21,432

$

18,331

$

15,689

Commercial loans

3,057

9,377

560

1,002

3,393

Consumer loans

16,779

26

7,461

7,156

9,091

Total

$

40,068

$

19,762

$

29,453

$

26,489

$

28,173

CRITICIZED LOANS:

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

Special mention

$

257,194

$

306,766

$

294,559

$

280,974

$

184,941

Substandard

242,397

243,684

380,955

379,048

366,557

Total criticized loans

$

499,591

$

550,450

$

675,514

$

660,022

$

551,498

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



ACCRUING DELINQUENT 12/31/ 12/31/LOANS 30-89 DAYS PAST 2021 9/30/2021 6/30/2021 3/31/2021 2020DUE:

30 - 59 days $ 29,723 $ 15,016 $ 22,466 $ 18,175 $ 11,347

60 - 89 days 10,345 4,746 6,987 8,314 16,826

Total $ 40,068 $ 19,762 $ 29,453 $ 26,489 $ 28,173





ACCRUING DELINQUENT 12/31/ 12/31/LOANS 30-89 DAYS PAST 2021 9/30/2021 6/30/2021 3/31/2021 2020DUE BY TYPE:

Real estate loans $ 20,232 $ 10,359 $ 21,432 $ 18,331 $ 15,689

Commercial loans 3,057 9,377 560 1,002 3,393

Consumer loans 16,779 26 7,461 7,156 9,091

Total $ 40,068 $ 19,762 $ 29,453 $ 26,489 $ 28,173





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

Special mention $ 257,194 $ 306,766 $ 294,559 $ 280,974 $ 184,941

Substandard 242,397 243,684 380,955 379,048 366,557

Total criticized $ 499,591 $ 550,450 $ 675,514 $ 660,022 $ 551,498loans

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Reconciliation of GAAP financial measures to non-GAAP financial measures:Management reviews select non-GAAP financial measures in evaluating the Company's and the Bank's financial performance and in response to market participant interest. A reconciliation of the GAAP to non-GAAP financial measures utilized by management is provided below.Three Months Ended

Twelve Months Ended

12/31/2021

9/30/2021

12/31/2020

12/31/2021

12/31/2020

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Average stockholders' equity

$

2,079,694

$

2,092,018

$

2,045,959

$

2,071,453

$

2,032,570

Less: Goodwill and core deposit intangible assets, net

(472,405

)

(472,918

)

(474,467

)

(473,177

)

(475,263

)

Average tangible common equity

$

1,607,289

$

1,619,100

$

1,571,492

$

1,598,276

$

1,557,307

Net Income

$

51,623

$

55,499

$

28,319

$

204,572

$

111,515

Return on average tangible common equity (annualized)

12.85

%

13.71

%

7.21

%

12.80

%

7.16

%

TANGIBLE COMMON EQUITY

12/31/2021

9/30/2021

12/31/2020

Total stockholders' equity

$

2,092,983

$

2,074,398

$

2,053,745

Less: Goodwill and core deposit intangible assets, net

(472,121

)

(472,630

)

(474,158

)

Tangible common equity

$

1,620,862

$

1,601,768

$

1,579,587

Total assets

$

17,889,061

$

17,799,026

$

17,106,664

Less: Goodwill and core deposit intangible assets, net

(472,121

)

(472,630

)

(474,158

)

Tangible assets

$

17,416,940

$

17,326,396

$

16,632,506

Common shares outstanding

120,006,452

120,198,061

123,264,864

Tangible common equity to tangible assets

9.31

%

9.24

%

9.50

%

Tangible common equity per share

$

13.51

$

13.33

$

12.81

Three Months Ended

Twelve Months Ended

12/31/2021

9/30/2021

12/31/2020

12/31/2021

12/31/2020

PRE-PROVISION NET REVENUE

Net interest income before provision (credit) for credit losses

$

133,318

$

130,296

$

120,756

$

512,770

$

467,498

Noninterest income

13,097

10,617

11,415

43,594

53,432

Revenue

146,415

140,913

132,171

556,364

520,930

Noninterest expense

74,236

75,502

71,063

293,292

283,639

Pre-provision net revenue

$

72,179

$

65,411

$

61,108

$

263,072

$

237,291

View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005752/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