Business Wire | Jul 30, 2020 04:30PM EDT

Hope Bancorp Reports 2020 Second Quarter Financial Results

Jul. 30, 2020

LOS ANGELES--(BUSINESS WIRE)--Jul. 30, 2020--Hope Bancorp, Inc. (the "Company") (NASDAQ: HOPE), the holding company of Bank of Hope (the "Bank"), today reported unaudited financial results for its three and six-month periods ended June 30, 2020.

For the three months ended June 30, 2020, net income totaled $26.8 million, or $0.22 per diluted common share, compared with $26.0 million, or $0.21 per diluted common share for the 2020 first quarter. In the year-ago second quarter, net income totaled $42.7 million, or $0.34 per diluted common share.

"The second quarter of 2020 represented the most challenging operating environment in the history of our Bank, with the COVID-19 crisis exacerbated by the aggregate 150 basis point reduction in the Fed Funds rate in March and the mounting social justice movement across the nation," said Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc. "Notwithstanding these strong headwinds, I am proud of how the entire Bank of Hope team came together and has been managing through this difficult period. We delivered solid loan production, significant core deposit growth and positive deposit cost trends, as well as meaningful cost reductions. We also supported many of our customers impacted by COVID-19 with modifications under the CARES Acts during the quarter and maintained relatively stable asset quality metrics. While our net interest margin was heavily impacted by the rate cuts, as well as a buildup of our liquidity and resulting excess cash balances, we believe this quarter represents the trough. Going forward, we expect stable loan yields, continued reductions in our deposit costs and the deployment of excess cash balances will lead to an expansion of our net interest margin in the coming quarters.

"We are in the late stages of developing additional initiatives in light of the new normal designed to restructure our balance sheet and contain expenses to further optimize our operational performance. We believe the near-term implementation of these initiatives will lead to improved profitability as we progress through the year and beyond. With our robust capital and liquidity positions, as well as the successes achieved to date with our deposit initiatives, we have great confidence in our ability to navigate through this new landscape and emerge as an even stronger regional bank to support the financial needs of our customers and communities and deliver greater value to our shareholders."

Q2 2020 Highlights

* New loan originations totaled $832 million, including $480 million of PPP loans, which led to a 2.3% increase in loans receivable quarter-over-quarter, or 9% annualized. * Total deposits increased 10.0% quarter-over-quarter, of which the vast majority of the growth was in noninterest bearing demand deposits. * Continuation of favorable mix-shift to lower-cost core deposits contributed to a 47 basis point reduction quarter-over-quarter in total deposit costs. * NIM compression of 52 basis points represents the trough, with expansion expected going forward from stable loan yields, continued reduction in deposit costs and deployment of excess cash. * Strategic reductions in noninterest expenses contributed to an improved 1.60% ratio as a percentage of average assets, versus 1.87% in the preceding first quarter. * Continued build up of reserves with allowance for credit losses as a percentage of loans receivable increasing to 1.26% at June 30, 2020 from 1.15% at March 31, 2020.

Financial Highlights

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

6/30/2020 3/31/2020 6/30/2019

Net income $ 26,753 $ 25,953 $ 42,681

Diluted earnings per share $ 0.22 $ 0.21 $ 0.34

Net interest income before $ 109,814 $ 119,291 $ 117,221 provision for credit losses

Net interest margin 2.79 % 3.31 % 3.31 %

Noninterest income $ 11,240 $ 13,264 $ 12,287

Noninterest expense $ 67,030 $ 72,140 $ 71,371

Net loans receivable $ 12,710,063 $ 12,438,493 $ 11,883,068

Deposits $ 14,123,532 $ 12,836,567 $ 12,172,384

Total cost of deposits 0.87 % 1.34 % 1.62 %

Nonaccrual loans ^(1) (2) $ 82,137 $ 72,639 $ 64,934

Nonperforming loans to loans 1.06 % 0.93 % 0.89 %receivable ^(1) (2)

ACL to loans receivable^ (3) 1.26 % 1.15 % 0.79 %

ACL to nonaccrual loans ^(1) 196.95 % 199.51 % 144.86 %(2) (3)

ACL to nonperforming assets ^ 102.95 % 103.62 % 84.24 %(1) (2) (3)

Provision for credit losses $ 17,500 $ 28,000 $ 1,200

Net charge offs $ 652 $ 3,421 $ 1,351

Return on average assets 0.64 % 0.67 % 1.12 %("ROA")

Return on average equity 5.31 % 5.12 % 8.71 %("ROE")

Return on average tangible 6.94 % 6.69 % 11.51 %common equity ("ROTCE") ^(4)

Noninterest expense / average 1.60 % 1.87 % 1.88 %assets

Efficiency ratio 55.37 % 54.42 % 55.11 %

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

^ Excludes purchased credit impaired ("PCI") loans for June 30, 2019.(2)

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

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

Operating Results for the 2020 Second Quarter

Net interest income before provision for credit losses for the 2020 second quarter totaled $109.8 million, compared with $119.3 million in the 2020 first quarter. The decrease primarily reflects a full quarter's impact of the aggregate 150 basis point decrease in the Fed Funds rate in March 2020, along with a large payoff of an acquired loan that contributed $5.6 million in purchase accounting discount accretion in the first quarter of 2020. Net interest income before provision for credit losses amounted to $117.2 million in the year-ago second quarter.

The net interest margin for the 2020 second quarter decreased 52 basis points to 2.79% from 3.31% in the preceding first quarter and was primarily impacted by the Fed Funds rate reductions and a significant increase in lower-yielding cash balances as the Company temporarily increased its excess liquidity as a precautionary measure in light of the COVID-19 pandemic. In addition, the large payoff mentioned above benefited the 2020 first quarter net interest margin by 16 basis points. The net interest margin for the 2019 second quarter was 3.31%.

The weighted average yield on loans for the 2020 second quarter decreased 83 basis points to 4.23% from 5.06% in the 2020 first quarter, reflecting the repricing of variable rate loans in the Company's portfolio as a result of the 150 basis point reduction in the Fed Funds rate. In the year-ago second quarter, the weighted average yield on loans was 5.32%.

The weighted average cost of deposits for the 2020 second quarter decreased 47 basis points to 0.87% from 1.34% for the 2020 first quarter and decreased 75 basis points from 1.62% for the year-ago second quarter. The significant improvements in the weighted average cost of deposits reflects the Company's ongoing success with its initiative to enhance its deposit mix to favor lower-cost core deposits.

Noninterest income totaled $11.2 million for the 2020 second quarter, compared with $13.3 million for the preceding first quarter and $12.3 million for the 2019 second quarter. The Company noted a 38% reduction in service fees on deposit accounts as transaction volumes decreased significantly in the midst of the COVID-19 related lockdowns. In addition, the net gains on sales of other loans in the preceding first quarter included gains from a bulk sale of residential mortgage loans, together with sales of new residential mortgage originations.

Noninterest expense for the 2020 second quarter declined 7% to $67.0 million from $72.1 million in the preceding first quarter, with reductions in compensation expense and professional fees being the largest factors driving the improvement. In the year-ago second quarter, noninterest expense totaled $71.4 million. Noninterest expense as a percentage of average assets for the 2020 second quarter improved to 1.60% from 1.87% for the 2020 first quarter and 1.88% for the 2019 second quarter.

Salaries and employee benefits expense for the 2020 second quarter decreased 9% to $38.9 million from $42.5 million for the 2020 first quarter. The Company noted that PPP loan origination costs of $5.2 million was a material factor in the reduced compensation expense for the current quarter. In the 2019 second quarter, salaries and employee benefits expense totaled $39.3 million.

The effective tax rate for the 2020 second quarter was 26.8%, compared with 19.9% for the preceding first quarter, reflecting the Company's projections for increased pretax income in the second half of 2020 than previously budgeted. In the year-ago second quarter, the effective tax rate was 25.0%.

Balance Sheet Summary

New loan originations funded during the 2020 second quarter totaled $832.0 million and included SBA PPP loan originations of $480.1 million, traditional SBA loan production of $5.9 million and residential mortgage loan originations of $72.3 million. This compares with 2020 first quarter originations of $624.5 million, including traditional SBA loan production of $49.8 million and residential mortgage loan originations of $37.4 million. In the year-ago second quarter, new loan originations funded totaled $503.9 million, including SBA loan production of $37.2 million and residential mortgage loan originations of $74.0 million.

At June 30, 2020, loans receivable increased 2.3% to $12.87 billion from $12.58 billion at March 31, 2020 and increased 7.5% from $11.98 billion at June 30, 2019.

Total deposits at June 30, 2020 increased by $1.29 billion, or 10.0% quarter-over-quarter, to $14.12 billion from $12.84 billion at March 31, 2020, with $1.03 billion of the increase in noninterest bearing demand deposits, of which approximately $326 million is identified as being related to PPP loans that the Company originated. Total deposits at June 30, 2019 amounted to $12.17 billion. The increases in total deposits versus the comparable periods reflect a continuation of a positive shift in the mix of deposits favoring core deposits over the last year.

Following is the deposit composition as of June 30, 2020, March 31, 2020 and June 30, 2019:

(dollars in % %thousands) 6/30/2020 3/31/2020 change 6/30/2019 change(unaudited)

Noninterestbearing $ 4,036,383 $ 3,010,143 34 % $ 3,009,218 34 %demanddeposits

Money market 4,831,679 4,851,000 - % 3,238,947 49 %and other

Saving 296,614 272,577 9 % 243,859 22 %deposits

Time 4,958,856 4,702,847 5 % 5,680,360 (13 )%deposits

Totaldeposit $ 14,123,532 $ 12,836,567 10 % $ 12,172,384 16 %balances

Reflecting the continued favorable mix-shift in deposits, total cost of deposits decreased 47 basis points to 0.87% from 1.34% for the 2020 first quarter and decreased 75 basis points from 1.62% for the 2019 second quarter.

Allowance for Credit Losses

The 2020 second quarter provision for credit losses under the CECL methodology was $17.5 million, compared with $28.0 million for the preceding first quarter. This compares with a provision for loan losses under the prior incurred loss methodology of $1.2 million for the 2019 second quarter.

The provision for credit losses for the 2020 second quarter reflects updated macroeconomic variables incorporating the Moody's Analytics Baseline scenario published June 2020, enhanced qualitative factors in the Company's ACL methodology, relatively stable asset quality metrics and minimal credit losses, as well as an additional Management overlay to accounts related to COVID-19 modifications.

The ACL as of June 30, 2020 increased to $161.8 million from $144.9 million at March 31, 2020 and from $94.1 million at June 30, 2019. As a percentage of loans receivable (excluding loans held for sale), the ACL rose to 1.26% at June 30, 2020 from 1.15% at March 31, 2020 and from 0.79% at June 30, 2019. The coverage ratio of the ACL to nonperforming loans was 118.82%, 124.06% and 88.73% at June 30, 2020, March 31, 2020 and June 30, 2019, respectively.

(unaudited) (dollars in thousands)

Allowance for loan losses - Dec 31, 2019 $ 94,144

CECL day 1 adoption impact 26,200

Allowance for credit losses - Jan 1, 2020 120,344

Provision for credit losses 28,000

Recoveries 2,536

Charge offs (5,957 )

Allowance for credit losses - Mar 31, 2020 $ 144,923

Provision for credit losses 17,500

Recoveries 252

Charge offs (904 )

Allowance for credit losses - June 30, 2020 $ 161,771

Credit Quality

Following are the components of nonperforming assets as of June 30, 2020, March 31, 2020 and June 30, 2019:

(dollars in thousands) (unaudited) 6/30/2020 3/31/2020 6/30/2019

Loans on nonaccrual status ^(1) $ 82,137 $ 72,639 $ 64,934

Delinquent loans 90 days or more on 9,986 387 353 accrual status ^(2)

Accruing troubled debt restructured loans 44,026 43,789 40,731

Total nonperforming loans 136,149 116,815 106,018

Other real estate owned 20,983 23,039 5,644

Total nonperforming assets $ 157,132 $ 139,854 $ 111,662

^ Excludes delinquent SBA loans that are guaranteed and currently in(1) liquidation totaling $30.3 million, $28.8 million and $32.1 million, at June 30, 2020, March 31, 2020 and June 30, 2019, respectively.

^ Excludes PCI loans totaling $17.6 million at June 30, 2019.(2)

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

(dollars in thousands) (unaudited) 6/30/2020 3/31/2020 6/30/2019

Special Mention $ 127,149 $ 122,279 $ 186,485

Classified 299,368 278,783 323,842

Criticized $ 426,517 $ 401,062 $ 510,327

During the 2020 second quarter, net charge offs were minimal at $652,000, or 0.02% of average loans receivable on an annualized basis. This compares with net charge offs of $3.4 million, or 0.11% of average loans receivable on an annualized basis for the 2020 first quarter and net charge offs for the 2019 second quarter of $1.4 million, or 0.05% of average loans receivable on an annualized basis.

Individually evaluated loans (previously referred to as impaired loans prior to the adoption of CECL) totaled $116.1 million at June 30, 2020. This compares with individually evaluated loans of $118.7 million at March 31, 2020 and impaired loans of $106.0 million at June 30, 2019. The Company attributed $22.2 million of the increase in individually evaluated loans in the 2020 first quarter to the reclassification of PCD (formerly purchased credit-impaired loans) due to the implementation of the new CECL accounting standards.

Capital

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

Minimum GuidelineHope Bancorp, Inc. 6/30/ 3/31/ 6/30/ for(unaudited) 2020 2020 2019 "Well-Capitalized" Bank

Common Equity Tier 1 11.50 % 11.44 % 11.90 % 6.50 %Capital

Tier 1 Leverage Ratio 10.08 % 10.88 % 10.94 % 5.00 %

Tier 1 Risk-Based Ratio 12.24 % 12.19 % 12.67 % 8.00 %

Total Risk-Based Ratio 13.23 % 13.06 % 13.42 % 10.00 %

As previously announced, the Company has elected to defer the impact of the adoption of CECL for two years, at which time the impact will be phased-in over a three year period. Therefore, the Day 1 CECL adjustment has not had an impact to the Company's regulatory capital ratios as of June 30, 2020.

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

(unaudited) 6/30/2020 3/31/2020 6/30/2019

Tangible common equity per share ^(1) $12.62 $12.52 $11.98

Tangible common equity to tangible assets ^ 9.32% 9.92% 10.21%(2)

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(1) 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.

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.

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

Investor Conference Call

The Company previously announced that it will host an investor conference call on Friday, July 31, 2020 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its second quarter ended June 30, 2020. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the "Hope Bancorp Call." A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp's website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp's website. After the live webcast, a replay will remain available in the Investor Relations section of Hope Bancorp's website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through August 7, 2020, replay access code 10146201.

About Hope Bancorp, Inc.

Hope Bancorp, Inc. is the holding company of Bank of Hope, the first and only super regional Korean-American bank in the United States with $17.2 billion in total assets as of June 30, 2020. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 58 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Georgia and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.

Forward-Looking Statements

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

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share data)

Assets: 6/30/2020 3/31/2020 % 12/31/2019 % 6/30/2019 % change change change

Cash and due $ 1,468,949 $ 802,033 83 % $ 698,567 110 % $ 609,795 141 %from banks

Securitiesavailable for 1,887,604 1,718,702 10 % 1,715,987 10 % 1,826,903 3 %sale, at fairvalue

Federal HomeLoan Bank("FHLB") 98,357 96,956 1 % 97,659 1 % 100,962 (3 )%stock andotherinvestments

Loans heldfor sale, atthe lower of 11,350 8,281 37 % 54,271 (79 )% 6,426 77 %cost or fairvalue

Loans 12,871,834 12,583,416 2 % 12,276,007 5 % 11,977,134 7 %receivable

Allowance for (161,771 ) (144,923 ) 12 % (94,144 ) 72 % (94,066 ) 72 %credit losses

Net loans 12,710,063 12,438,493 2 % 12,181,863 4 % 11,883,068 7 %receivable

Accruedinterest 52,859 30,450 74 % 30,772 72 % 33,980 56 %receivable

Premises andequipment, 51,029 51,392 (1 )% 52,012 (2 )% 52,552 (3 )%net

Bank ownedlife 77,050 76,429 1 % 76,339 1 % 75,963 1 %insurance

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

Servicing 14,164 14,847 (5 )% 16,417 (14 )% 19,997 (29 )%assets

Otherintangible 10,770 11,302 (5 )% 11,833 (9 )% 12,947 (17 )%assets, net

Other assets 322,417 308,099 5 % 267,270 21 % 251,784 28 %

Total assets $ 17,169,062 $ 16,021,434 7 % $ 15,667,440 10 % $ 15,338,827 12 %



Liabilities:

Deposits $ 14,123,532 $ 12,836,567 10 % $ 12,527,364 13 % $ 12,172,384 16 %

FHLB advances 500,000 675,000 (26 )% 625,000 (20 )% 695,000 (28 )%

Convertible 201,987 200,716 1 % 199,458 1 % 196,977 3 %notes, net

Subordinated 103,602 103,318 - % 103,035 1 % 102,477 1 %debentures

Accruedinterest 26,093 30,436 (14 )% 33,810 (23 )% 36,987 (29 )%payable

Other 183,072 157,309 16 % 142,762 28 % 139,830 31 %liabilities

Total $ 15,138,286 $ 14,003,346 8 % $ 13,631,429 11 % $ 13,343,655 13 %liabilities



Stockholders' Equity:

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

Capital 1,430,757 1,429,275 - % 1,428,066 - % 1,425,262 - %surplus

Retained 761,734 752,228 1 % 762,480 - % 712,351 7 %earnings

Treasurystock, at (200,000 ) (200,000 ) - % (163,820 ) (22 )% (150,000 ) (33 )%cost

Accumulatedothercomprehensive 38,149 36,449 5 % 9,149 317 % 7,423 414 %gain (loss),net

Totalstockholders' 2,030,776 2,018,088 1 % 2,036,011 - % 1,995,172 2 %equity

Totalliabilitiesand $ 17,169,062 $ 16,021,434 7 % $ 15,667,440 10 % $ 15,338,827 12 %stockholders'equity



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

Common stockshares - 123,239,276 123,169,404 125,756,543 126,673,822 outstanding

Treasury 12,661,581 12,661,581 9,945,547 9,002,453 stock shares

Table Page 1

Hope Bancorp, Inc.

Selected Financial Data

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

Three Months Ended Six Months Ended

6/30/2020 3/31/2020 % 6/30/2019 % 6/30/2020 6/30/2019 % change change change

Interest and $ 134,190 $ 154,230 (13 )% $ 158,627 (15 ) $ 288,420 $ 316,763 (9 )fees on loans % %

Interest on 9,891 10,609 (7 )% 11,866 (17 ) 20,500 24,185 (15 )securities % %

Interest onfederal funds 980 2,029 (52 )% 2,973 (67 ) 3,009 5,648 (47 )sold and other % %investments

Total interest 145,061 166,868 (13 )% 173,466 (16 ) 311,929 346,596 (10 )income % %



Interest on 29,451 41,113 (28 )% 48,826 (40 ) 70,564 95,673 (26 )deposits % %

Interest onother ) )borrowings and 5,796 6,464 (10 )% 7,419 (22 % 12,260 14,094 (13 %convertiblenotes

Total interest 35,247 47,577 (26 )% 56,245 (37 ) 82,824 109,767 (25 )expense % %



Net interestincome before 109,814 119,291 (8 )% 117,221 (6 ) 229,105 236,829 (3 )provision for % %credit losses

Provision for 17,500 28,000 (38 )% 1,200 1,358 % 45,500 4,200 983 %credit losses

Net interestincome after 92,314 91,291 1 % 116,021 (20 ) 183,605 232,629 (21 )provision for % %credit losses



Service fees ) )on deposit 2,583 4,133 (38 )% 4,416 (42 % 6,716 8,733 (23 %accounts

International 667 790 (16 )% 1,020 (35 ) 1,456 1,953 (25 )service fees % %

Loan servicing 1,106 365 203 % 738 50 % 1,471 1,467 - %fees, net

Wire transfer 820 998 (18 )% 1,311 (37 ) 1,818 2,400 (24 )fees % %

Net gains onsales of other 1,678 1,855 (10 )% 1,066 57 % 3,533 1,807 96 %loans

Net gains onsales of )securities - - 100 % 129 100 % - 129 (100 %available forsale

Other income 4,386 5,123 (14 )% 3,607 22 % 9,510 7,220 32 %and fees

Total )noninterest 11,240 13,264 (15 )% 12,287 (9 % 24,504 23,709 3 %income



Salaries and )employee 38,850 42,502 (9 )% 39,297 (1 % 81,352 79,726 2 %benefits

Occupancy 7,043 7,410 (5 )% 7,839 (10 ) 14,453 15,516 (7 ) % %

Furniture and 4,654 4,259 9 % 4,026 16 % 8,913 7,472 19 %equipment

Advertising 1,315 1,673 (21 )% 2,245 (41 ) 2,988 4,307 (31 )and marketing % %

Data ) )processing and 2,274 2,631 (14 )% 2,587 (12 % 4,905 5,543 (12 %communications

Professional 1,510 3,300 (54 )% 5,959 (75 ) 4,810 11,339 (58 )fees % %

FDIC 1,652 1,559 6 % 1,559 6 % 3,211 3,110 3 %assessment

Credit related 1,361 1,662 (18 )% 1,549 (12 ) 3,023 2,227 36 %expenses %

OREO expense 1,338 843 59 % 83 1,512 % 2,181 (69 ) N/A (income), net

Other 7,033 6,301 12 % 6,227 13 % 13,334 13,033 2 %

Total ) )noninterest 67,030 72,140 (7 )% 71,371 (6 % 139,170 142,204 (2 %expense

Income before 36,524 32,415 13 % 56,937 (36 ) 68,939 114,134 (40 )income taxes % %

Income tax 9,771 6,462 51 % 14,256 (31 ) 16,233 28,695 (43 )provision % %

Net income $ 26,753 $ 25,953 3 % $ 42,681 (37 ) $ 52,706 $ 85,439 (38 ) % %



Earnings Per Common Share:

Basic $ 0.22 $ 0.21 $ 0.34 $ 0.43 $ 0.67

Diluted $ 0.22 $ 0.21 $ 0.34 $ 0.42 $ 0.67



WeightedAverage Shares Outstanding:

Basic 123,200,127 124,295,327 126,658,509 123,747,727 126,649,536

Diluted 123,430,891 124,676,296 126,870,455 124,054,291 126,842,870

Table Page 2

Hope Bancorp, Inc.

Selected Financial Data

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

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

Profitability 6/30/2020 3/31/2020 6/30/2019 6/30/2020 6/30/2019measures:

ROA 0.64 % 0.67 % 1.12 % 0.65 % 1.12 %

ROE 5.31 % 5.12 % 8.71 % 5.21 % 8.81 %

ROTCE ^(1) 6.94 % 6.69 % 11.51 % 6.82 % 11.68 %

Net interest margin 2.79 % 3.31 % 3.31 % 3.04 % 3.35 %

Efficiency ratio 55.37 % 54.42 % 55.11 % 54.88 % 54.58 %

Noninterest expense 1.60 % 1.87 % 1.88 % 1.73 % 1.87 %/ average assets



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





Three Months Ended Six Months Ended

Pre-tax acquisitionaccountingadjustments and 6/30/2020 3/31/2020 6/30/2019 6/30/2020 6/30/2019merger-relatedexpenses:

Accretion onpurchased $ 658 $ 1,059 $ 1,799 $ 1,717 $ 3,965 non-impaired loans

Accretion onpurchased creditdeteriorated/ 3,046 9,449 6,848 12,495 12,682 purchased creditimpaired loans

Amortization ofpremium on low (70 ) (71 ) (76 ) (141 ) (152 )income housing taxcredits

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

Accretion ofdiscount on (284 ) (283 ) (275 ) (567 ) (548 )acquiredsubordinated debt

Amortization ofcore deposit (532 ) (531 ) (557 ) (1,063 ) (1,114 )intangibles

Total acquisitionaccounting $ 2,818 $ 9,623 $ 7,739 $ 12,441 $ 16,113 adjustments



Table Page 3

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

6/30/2020 3/31/2020 6/30/2019

Interest Annualized Interest Annualized Interest Annualized

Average Income/ Average Average Income/ Average Average Income/ Average

Balance Expense Yield/Cost Balance Expense Yield/Cost Balance Expense Yield/Cost

INTEREST EARNING ASSETS:

Loans, includingloans held for $ 12,755,088 $ 134,190 4.23 % $ 12,259,848 $ 154,230 5.06 % $ 11,959,920 $ 158,627 5.32 %sale

Securitiesavailable for 1,750,156 9,891 2.27 % 1,712,033 10,609 2.49 % 1,804,677 11,866 2.64 %sale

FHLB stock andother 1,317,049 980 0.30 % 519,309 2,029 1.57 % 460,623 2,973 2.59 %investments

Total interest $ 15,822,293 $ 145,061 3.69 % $ 14,491,190 $ 166,868 4.63 % $ 14,225,220 $ 173,466 4.89 %earning assets



INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest $ 4,903,786 $ 7,563 0.62 % $ 4,204,406 $ 14,880 1.42 % $ 3,094,179 $ 14,019 1.82 %bearing

Savings 284,050 862 1.22 % 274,075 808 1.19 % 225,978 608 1.08 %

Time deposits 4,954,446 21,026 1.71 % 4,900,405 25,425 2.09 % 5,784,980 34,199 2.37 %

Total interest 10,142,282 29,451 1.17 % 9,378,886 41,113 1.76 % 9,105,137 48,826 2.15 %bearing deposits

FHLB advances 593,407 2,238 1.52 % 594,890 2,647 1.79 % 706,044 3,384 1.92 %

Convertible 201,169 2,358 4.64 % 199,960 2,346 4.64 % 196,244 2,310 4.66 %notes, net

Subordinated 99,534 1,200 4.77 % 99,252 1,471 5.86 % 98,406 1,725 6.93 %debentures

Total interestbearing $ 11,036,392 $ 35,247 1.28 % $ 10,272,988 $ 47,577 1.86 % $ 10,105,831 $ 56,245 2.23 %liabilities

Noninterestbearing demand 3,510,783 2,963,136 2,947,476 deposits

Total fundingliabilities/cost $ 14,547,175 0.97 % $ 13,236,124 1.45 % $ 13,053,307 1.73 %of funds

Net interestincome/net $ 109,814 2.41 % $ 119,291 2.77 % $ 117,221 2.66 %interest spread

Net interest 2.79 % 3.31 % 3.31 %margin



Cost of deposits:

Noninterestbearing demand $ 3,510,783 $ - - % $ 2,963,136 $ - - % $ 2,947,476 $ - - %deposits

Interest bearing 10,142,282 29,451 1.17 % 9,378,886 41,113 1.76 % 9,105,137 48,826 2.15 %deposits

Total deposits $ 13,653,065 $ 29,451 0.87 % $ 12,342,022 $ 41,113 1.34 % $ 12,052,613 $ 48,826 1.62 %

Table Page 4

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Six Months Ended

6/30/2020 6/30/2019

Interest Annualized Interest Annualized

Average Income/ Average Average Income/ Average

Balance Expense Yield/Cost Balance Expense Yield/Cost

INTERESTEARNING ASSETS:

Loans,including $ 12,507,468 $ 288,420 4.64 % $ 12,023,690 $ 316,763 5.31 % loans heldfor sale

Securitiesavailable 1,731,094 20,500 2.38 % 1,816,081 24,185 2.69 % for sale

FHLB stockand other 918,179 3,009 0.66 % 433,293 5,648 2.63 % investments

Totalinterest $ 15,156,741 $ 311,929 4.14 % $ 14,273,064 $ 346,596 4.90 % earningassets



INTERESTBEARING LIABILITIES:

Deposits:

Demand,interest $ 4,554,096 $ 22,443 0.99 % $ 3,068,494 $ 27,005 1.77 % bearing

Savings 279,063 1,670 1.20 % 224,761 1,173 1.05 %

Time 4,927,425 46,451 1.90 % 5,860,492 67,495 2.32 % deposits

Totalinterest 9,760,584 70,564 1.45 % 9,153,747 95,673 2.11 % bearingdeposits

FHLB 594,148 4,885 1.65 % 758,161 5,998 1.60 % advances

Convertible 200,565 4,704 4.64 % 195,610 4,609 4.69 % notes, net

Subordinated 99,393 2,671 5.32 % 98,267 3,487 7.06 % debentures

Totalinterest $ 10,654,690 $ 82,824 1.56 % $ 10,205,785 $ 109,767 2.17 % bearingliabilities

Noninterestbearing 3,236,960 2,917,279 demanddeposits

Totalfundingliabilities/ $ 13,891,650 1.20 % $ 13,123,064 1.69 % cost offunds

Net interestincome/net $ 229,105 2.58 % $ 236,829 2.73 % interestspread

Net interest 3.04 % 3.35 % margin



Cost of deposits:

Noninterestbearing $ 3,236,960 $ - - % $ 2,917,279 $ - - % demanddeposits

Interestbearing 9,760,584 70,564 1.45 % 9,153,747 95,673 2.11 % deposits

Total $ 12,997,544 $ 70,564 1.09 % $ 12,071,026 $ 95,673 1.60 % deposits

Table Page 5

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended Six Months Ended

AVERAGE 6/30/2020 3/31/2020 % 6/30/2019 % 6/30/2020 6/30/2019 %BALANCES: change change change

Loansreceivable,including $ 12,755,088 $ 12,259,848 4 % $ 11,959,920 7 % $ 12,507,468 $ 12,023,690 4 %loans heldfor sale

Investments 3,067,205 2,231,342 37 % 2,265,300 35 % 2,649,273 2,249,374 18 %

Interestearning 15,822,293 14,491,190 9 % 14,225,220 11 % 15,156,741 14,273,064 6 %assets

Total assets 16,759,147 15,446,807 8 % 15,185,495 10 % 16,102,977 15,237,627 6 %



Interestbearing 10,142,282 9,378,886 8 % 9,105,137 11 % 9,760,584 9,153,747 7 %deposits

Interestbearing 11,036,392 10,272,988 7 % 10,105,831 9 % 10,654,690 10,205,785 4 %liabilities

Noninterestbearing 3,510,783 2,963,136 18 % 2,947,476 19 % 3,236,960 2,917,279 11 %demanddeposits

Stockholders' 2,016,947 2,027,595 (1 )% 1,960,500 3 % 2,022,271 1,940,606 4 %equity

Net interestearning 4,785,901 4,218,202 13 % 4,119,389 16 % 4,502,051 4,067,279 11 %assets



LOAN % %PORTFOLIO 6/30/2020 3/31/2020 change 12/31/2019 change 6/30/2019 % change COMPOSITION:

Commercial $ 3,415,111 $ 3,067,132 11 % $ 2,719,818 26 % $ 2,432,164 40 % loans

Real estate 8,686,939 8,681,222 - % 8,666,901 - % 8,630,538 1 % loans

Consumer and 769,784 835,062 (8 )% 889,288 (13 )% 914,432 (16 ) other loans %

Loans, net ofdeferred loan 12,871,834 12,583,416 2 % 12,276,007 5 % 11,977,134 7 % fees andcosts

Allowance for (161,771 ) (144,923 ) 12 % (94,144 ) 72 % (94,066 ) 72 % credit losses

Loanreceivable, $ 12,710,063 $ 12,438,493 2 % $ 12,181,863 4 % $ 11,883,068 7 % net



REAL ESTATELOANS BY 6/30/2020 3/31/2020 % 12/31/2019 % 6/30/2019 % change PROPERTY change changeTYPE:

Retail $ 2,278,448 $ 2,314,885 (2 )% $ 2,298,872 (1 )% $ 2,295,485 (1 ) buildings %

Hotels/motels 1,701,909 1,706,082 - % 1,709,189 - % 1,670,697 2 %

Gas stations/ 836,314 852,077 (2 )% 844,081 (1 )% 953,942 (12 ) car washes %

Mixed-use 706,827 770,825 (8 )% 785,882 (10 )% 739,440 (4 ) facilities %

Warehouses 1,040,303 1,024,832 2 % 1,030,876 1 % 936,900 11 %

Multifamily 497,948 481,425 3 % 465,397 7 % 460,555 8 %

Other 1,625,190 1,531,096 6 % 1,532,604 6 % 1,573,519 3 %

Total $ 8,686,939 $ 8,681,222 - % $ 8,666,901 - % $ 8,630,538 1 %



DEPOSIT 6/30/2020 3/31/2020 % 12/31/2019 % 6/30/2019 % change COMPOSITION change change

Noninterestbearing $ 4,036,383 $ 3,010,143 34 % $ 3,108,687 30 % $ 3,009,218 34 % demanddeposits

Money market 4,831,679 4,851,000 - % 3,985,556 21 % 3,238,947 49 % and other

Saving 296,614 272,577 9 % 274,151 8 % 243,859 22 % deposits

Time deposits 4,958,856 4,702,847 5 % 5,158,970 (4 )% 5,680,360 (13 ) %

Total deposit $ 14,123,532 $ 12,836,567 10 % $ 12,527,364 13 % $ 12,172,384 16 % balances



DEPOSITCOMPOSITION 6/30/2020 3/31/2020 12/31/2019 6/30/2019 (%)

Noninterestbearing 28.6 % 23.5 % 24.8 % 24.7 % demanddeposits

Money market 34.2 % 37.8 % 31.8 % 26.6 % and other

Saving 2.1 % 2.1 % 2.2 % 2.0 % deposits

Time deposits 35.1 % 36.6 % 41.2 % 46.7 %

Total deposit 100.0 % 100.0 % 100.0 % 100.0 % balances

Table Page 6

Hope Bancorp, Inc.

Selected Financial Data

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



CAPITAL RATIOS: 6/30/2020 3/31/2020 12/31/2019 6/30/2019

Totalstockholders' $ 2,030,776 $ 2,018,088 $ 2,036,011 $ 1,995,172 equity

Common equity 11.50 % 11.44 % 11.76 % 11.90 % tier 1 ratio

Tier 1risk-based 12.24 % 12.19 % 12.51 % 12.67 % capital ratio

Totalrisk-based 13.23 % 13.06 % 13.23 % 13.42 % capital ratio

Tier 1 leverage 10.08 % 10.88 % 11.22 % 10.94 % ratio

Total risk $ 13,388,522 $ 13,348,162 $ 13,208,299 $ 12,715,685 weighted assets

Book value per $ 16.48 $ 16.38 $ 16.19 $ 15.75 common share

Tangible commonequity to 9.32 % 9.92 % 10.27 % 10.21 % tangible assets^1

Tangible commonequity per $ 12.62 $ 12.52 $ 12.40 $ 11.98 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 Six Months Ended

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

Balance atbeginning of $ 144,923 $ 94,144 $ 93,882 $ 94,066 $ 94,217 $ 94,144 $ 92,557 period

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

Provision for 17,500 28,000 1,000 2,100 1,200 45,500 4,200 credit losses

Recoveries 252 2,536 939 780 725 2,788 2,017

Charge offs (904 ) (5,957 ) (1,677 ) (2,602 ) (2,076 ) (6,861 ) (3,830 )

PCI allowance - - - (462 ) - - (878 )adjustment

Balance at end $ 161,771 $ 144,923 $ 94,144 $ 93,882 $ 94,066 $ 161,771 $ 94,066 of period

Net charge offs/average loans 0.02 % 0.11 % 0.02 % 0.06 % 0.05 % 0.07 % 0.03 %receivable(annualized)





Three Months Ended Six Months Ended

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

Real estate $ 148 $ 2,230 $ 203 $ 951 $ (388 ) $ 2,378 $ (1,455 )loans

Commercial 240 676 245 596 1,399 916 2,649 loans

Consumer loans 264 515 290 275 340 779 619

Total net $ 652 $ 3,421 $ 738 $ 1,822 $ 1,351 $ 4,073 $ 1,813 charge offs



Table Page 7

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

NONPERFORMING 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019ASSETS:

Loans onnonaccrual $ 82,137 $ 72,639 $ 54,785 $ 42,235 $ 64,934 status ^3

Delinquentloans 90 daysor more on 9,986 387 7,547 398 353 accrualstatus

Accruingtroubled debt 44,026 43,789 35,709 34,717 40,731 restructuredloans

Totalnonperforming 136,149 116,815 98,041 77,350 106,018 loans

Other real 20,983 23,039 24,091 19,374 5,644 estate owned

Totalnonperforming $ 157,132 $ 139,854 $ 122,132 $ 96,724 $ 111,662 assets

Nonperformingassets/total 0.92 % 0.87 % 0.78 % 0.63 % 0.73 %assets

Nonperformingassets/loans 1.22 % 1.11 % 0.99 % 0.80 % 0.93 %receivable &OREO

Nonperformingassets/total 7.74 % 6.93 % 6.00 % 4.76 % 5.60 %capital

Nonperformingloans/loans 1.06 % 0.93 % 0.80 % 0.64 % 0.89 %receivable

Nonaccrualloans/loans 0.64 % 0.58 % 0.45 % 0.35 % 0.54 %receivable

Allowance forcredit losses 1.26 % 1.15 % 0.77 % 0.78 % 0.79 %/loansreceivable

Allowance forcredit losses 196.95 % 199.51 % 171.84 % 222.28 % 144.86 %/nonaccrualloans

Allowance forcredit losses/ 118.82 % 124.06 % 96.03 % 121.37 % 88.73 %nonperformingloans

Allowance forcredit losses/ 102.95 % 103.62 % 77.08 % 97.06 % 84.24 %nonperformingassets



^3 Excludes delinquent SBA loans that are guaranteed and currently inliquidation totaling $30.3 million, $28.8 million, $28.1 million, $37.3million, and $32.1 million at June 30, 2020, March 31, 2020,

December 31, 2019, September 30, 2019, and June 30, 2019, respectively.





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

Real estate $ 64,060 $ 56,787 $ 40,935 $ 27,920 $ 42,921 loans

Commercial 12,079 12,747 10,893 11,242 18,997 loans

Consumer 5,998 3,105 2,957 3,073 3,016 loans

Totalnonaccrual $ 82,137 $ 72,639 $ 54,785 $ 42,235 $ 64,934 loans



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

Retail $ 5,526 $ 5,014 $ 4,215 $ 3,221 $ 2,919 buildings

Gas stations/ 1,789 1,675 - 233 241 car washes

Mixed-use 3,583 3,157 3,175 3,200 3,223 facilities

Warehouses 13,433 13,381 10,381 10,449 11,246

Other ^5 19,695 20,562 17,938 17,614 23,102

Total $ 44,026 $ 43,789 $ 35,709 $ 34,717 $ 40,731



^5 Includescommercialbusiness, consumer, andother loans

Table Page 8

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



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

30 - 59 days $ 18,857 $ 37,866 $ 14,433 $ 25,281 $ 17,913

60 - 89 days 29,975 2,605 4,712 4,535 1,295

Total $ 48,832 $ 40,471 $ 19,145 $ 29,816 $ 19,208





ACCRUINGDELINQUENTLOANS 30-89 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019DAYS PAST DUEBY TYPE:

Real estate $ 27,245 $ 23,753 $ 7,689 $ 20,572 $ 9,794 loans

Commercial 5,987 4,583 692 2,282 1,832 loans

Consumer 15,600 12,135 10,764 6,962 7,582 loans

Total $ 48,832 $ 40,471 $ 19,145 $ 29,816 $ 19,208





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

Special $ 127,149 $ 122,279 $ 141,452 $ 139,848 $ 186,485 mention

Substandard 299,357 278,771 259,278 268,605 323,841

Doubtful/Loss 11 12 13 17 1

Totalcriticized $ 426,517 $ 401,062 $ 400,743 $ 408,470 $ 510,327 loans

Table Page 9

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:





Three Months Ended Six Months Ended

6/30/2020 3/31/2020 6/30/2019 6/30/2020 6/30/2019

RETURN ONAVERAGE TANGIBLECOMMON EQUITY

Averagestockholders' $ 2,016,947 $ 2,027,595 $ 1,960,500 $ 2,022,271 $ 1,940,606 equity

Less:Goodwill andcore deposit (475,534 ) (476,053 ) (477,736 ) (475,793 ) (478,021 )intangibleassets, net

Averagetangible $ 1,541,413 $ 1,551,542 $ 1,482,764 $ 1,546,478 $ 1,462,585 common equity



Net income $ 26,753 $ 25,953 $ 42,681 $ 52,706 $ 85,439

Return onaveragetangible 6.94 % 6.69 % 11.51 % 6.82 % 11.68 %common equity(annualized)



Three Months Ended

6/30/2020 3/31/2020 12/31/2019 6/30/2019

TANGIBLE COMMON EQUITY

Totalstockholders' $ 2,030,776 $ 2,018,088 $ 2,036,011 $ 1,995,172 equity

Less:Goodwill andcore deposit (475,220 ) (475,752 ) (476,283 ) (477,397 ) intangibleassets, net

Tangible $ 1,555,556 $ 1,542,336 $ 1,559,728 $ 1,517,775 common equity



Total assets $ 17,169,062 $ 16,021,434 $ 15,667,440 $ 15,338,827

Less:Goodwill andcore deposit (475,220 ) (475,752 ) (476,283 ) (477,397 ) intangibleassets, net

Tangible $ 16,693,842 $ 15,545,682 $ 15,191,157 $ 14,861,430 assets



Common shares 123,239,276 123,169,404 125,756,543 126,673,822 outstanding



Tangiblecommon equity 9.32 % 9.92 % 10.27 % 10.21 % to tangibleassets

Tangiblecommon equity $ 12.62 $ 12.52 $ 12.40 $ 11.98 per share



Three Months Ended Six Months Ended

6/30/2020 3/31/2020 6/30/2019 6/30/2020 6/30/2019

PRE-TAXPRE-PROVISION INCOME

Net income $ 26,753 $ 25,953 $ 42,681 $ 52,706 $ 85,439

Add back - 9,771 6,462 14,256 16,233 28,695 tax provision

Add back -provision for 17,500 28,000 1,200 45,500 4,200 credit losses

Pre-taxpre-provision $ 54,024 $ 60,415 $ 58,137 $ 114,439 $ 118,334 income



Table Page 10

View source version on businesswire.com: https://www.businesswire.com/news/home/20200730006030/en/

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

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