Business Wire | Oct 20, 2020 04:30PM EDT

Hope Bancorp Reports 2020 Third Quarter Financial Results

Oct. 20, 2020

LOS ANGELES--(BUSINESS WIRE)--Oct. 20, 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 nine-month periods ended September 30, 2020.

For the three months ended September 30, 2020, net income totaled $30.5 million, or $0.25 per diluted common share, compared with $26.8 million, or $0.22 per diluted common share for the 2020 second quarter. In the year-ago third quarter, net income totaled $42.6 million, or $0.34 per diluted common share.

"We continue to manage our business well in this most challenging operating environment as evidenced by the many positive trends in our 2020 third quarter," said Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc. "The continued success we are having in reducing our deposit costs resulted in a 7% quarter-over-quarter increase in net interest income and a 12 basis point expansion in our net interest margin. Contributing to a 23 basis point reduction in our cost of deposits, noninterest bearing demand deposits increased 11% quarter-over-quarter and accounted for 32% of total deposits at quarter end. We also made significant progress during the quarter redeploying the excess liquidity that was built up as a precautionary measure in light of COVID-19. Altogether with our cost containment efforts, we saw improvement in our efficiency ratio.

"Asset quality remains top of mind as we continue to help our borrowers manage through the impact of the pandemic. Overall, credit trends remain stable with meaningful reductions in nonaccrual loans and restructured loans. Underscoring the protracted impact COVID-19 is having on the economy, we further increased our allowance for credit losses to 1.37% of total loans at September 30, 2020 from 1.26% at June 30, 2020. We believe we are taking appropriate mitigating actions for the current environment and remain confident in our ability to continue supporting our customers and communities while delivering solid financial performance for our shareholders."

Q3 2020 Highlights

* Net interest income before provision for credit losses increased 7% to $117.6 million from Q2 2020, largely benefiting from meaningful reductions in interest expense due to lower cost of deposits. * Net interest margin expanded 12 basis points quarter-over-quarter benefiting from continued reduction in deposit costs and redeployment of excess liquidity. * Noninterest bearing deposits increased 11% by $452 million quarter-over-quarter and accounted for 32% of total deposits at quarter end. * Favorable mix-shift to lower-cost core deposits continued and total deposit costs decreased 23 basis points quarter-over-quarter. * Loan originations of $782 million included $301 million in utilization of new warehouse mortgage lines and contributed to a 2% increase in loans receivable quarter-over-quarter, or 8% annualized. * Noninterest expenses were well contained, and efficiency ratio improved to 54.31% from 55.37% in Q2 2020. * ROA and ROTCE improved to 0.72% and 7.80%, respectively, from 0.64% and 6.94% in Q2 2020. * Nonperforming loans decreased 16% quarter-over-quarter to $106.2 million, or 0.81% of loans receivable. * Allowance for credit losses increased to 1.37% of loans receivable at September 30, 2020 from 1.26% at June 30, 2020.

Financial Highlights

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

9/30/2020 6/30/2020 9/30/2019

Net income $ 30,490 $ 26,753 $ 42,592

Diluted earnings per share $ 0.25 $ 0.22 $ 0.34

Net interest income before $ 117,637 $ 109,814 $ 116,258 provision for credit losses

Net interest margin 2.91 % 2.79 % 3.25 %

Noninterest income $ 17,513 $ 11,240 $ 12,995

Noninterest expense $ 73,406 $ 67,030 $ 69,995

Net loans receivable $ 12,940,376 $ 12,710,063 $ 12,010,800

Deposits $ 14,008,356 $ 14,123,532 $ 12,234,750

Total cost of deposits 0.64 % 0.87 % 1.62 %

Nonaccrual loans ^(1) (2) $ 69,205 $ 82,137 $ 42,235

Nonperforming loans to loans 0.81 % 0.98 % 0.64 %receivable ^(1) (2)

ACL to loans receivable^ (3) 1.37 % 1.26 % 0.78 %

ACL to nonaccrual loans ^(1) 259.88 % 196.95 % 222.28 %(2) (3)

ACL to nonperforming assets ^ 144.36 % 109.62 % 97.06 %(1) (2) (3)

Provision for credit losses $ 22,000 $ 17,500 $ 2,100

Net charge offs $ 3,922 $ 652 $ 1,822

Return on average assets 0.72 % 0.64 % 1.12 %("ROA")

Return on average equity 5.98 % 5.31 % 8.47 %("ROE")

Return on average tangible 7.80 % 6.94 % 11.11 %common equity ("ROTCE") ^(4)

Noninterest expense / average 1.73 % 1.60 % 1.85 %assets

Efficiency ratio 54.31 % 55.37 % 54.15 %

(1)

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

(2)

Excludes purchased credit impaired ("PCI") loans for September 30, 2019.

(3)

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

(4)

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

Operating Results for the 2020 Third Quarter

Net interest income before provision for credit losses for the 2020 third quarter increased 7% to $117.6 million from $109.8 million in the 2020 second quarter and increased 1% from $116.3 million in the 2019 third quarter. The Company attributed the increases to significant reductions in interest expense predominantly as a result of meaningful decreases in its total cost of deposits each period over the past four quarters. In addition, the Company reduced its FHLB borrowings by $300 million, or 60%, during the 2020 third quarter as part of an initiative to deploy excess liquidity built up in the early stages of the COVID-19 pandemic, which further reduced interest expense.

The net interest margin for the 2020 third quarter increased 12 basis points to 2.91% from 2.79% in the preceding second quarter. The primary factor contributing to the margin expansion was a 23 basis point reduction in total cost of deposits, which benefited net interest margin by approximately 15 basis points in the 2020 third quarter. The net interest margin for the 2019 third quarter was 3.25%.

The weighted average yield on loans for the 2020 third quarter was generally stable, decreasing 3 basis points to 4.20% from 4.23% in the 2020 second quarter. In the year-ago third quarter, the weighted average yield on loans was 5.27%.

The weighted average cost of deposits for the 2020 third quarter decreased 23 basis points to 0.64% from 0.87% for the 2020 second quarter and decreased 98 basis points from 1.62% for the year-ago third quarter. The significant improvements in the weighted average cost of deposits reflects in part the Company's ongoing success with its initiative to enhance its deposit mix to favor lower-cost core deposits, as well as strategic reductions in the offering rates on its interest bearing deposit accounts over the past four quarters.

Noninterest income for the 2020 third quarter increased 56% to $17.5 million from $11.2 million for the preceding second quarter and $13.0 million for the 2019 third quarter. The largest factor contributing to the increase was a $7.5 million net gain on the sale of $161 million of available-for-sale investment securities. This compares with zero in the 2020 second quarter and $153,000 in the 2019 third quarter. In addition, net gains on sales of other loans from sales of new residential mortgage originations increased to $2.9 million in the 2020 third quarter from $1.7 million in the preceding second quarter and $804,000 in the 2019 third quarter. These increases were partially offset by a reduction in other income and fees, which amounted to $1.7 million in the 2020 third quarter, compared with $4.4 million in the 2020 second quarter, largely reflecting a fair value change in derivatives as well as lower swap fee income. In the 2019 third quarter, other income and fees amounted to $4.9 million.

Noninterest expense for the 2020 third quarter totaled $73.4 million, compared with $67.0 million for the preceding second quarter and $70.0 million for the 2019 third quarter. During the 2020 third quarter, the Company incurred a $3.6 million prepayment penalty related to the early payoff of $300 million in FHLB borrowings discussed above. There were no such fees in the preceding second quarter or 2019 third quarter.

Salaries and employee benefits expense totaled $40.7 million, $38.9 million and $41.6 million for the 2020 third quarter, 2020 second quarter and 2019 third quarter. As disclosed last quarter, PPP loan origination costs of $5.2 million were deferred in the 2020 second quarter and materially reduced compensation expense for that quarter alone. Excluding the impact of the PPP loan origination costs in the 2020 second quarter, salaries and employee benefits expense declined quarter-over-quarter, as the 4% workforce reduction at the beginning of the third quarter reduced base salary and benefits expense by $1.6 million in the 2020 third quarter.

Noninterest expense as a percentage of average assets was 1.73% for the 2020 third quarter, 1.60% for the 2020 second quarter and 1.85% for the 2019 third quarter. Excluding the FHLB prepayment penalty, noninterest expense as a percentage of average assets for the 2020 third quarter was 1.64%.

The effective tax rate for the 2020 third quarter was 23.3%, compared with 26.8% for the preceding second quarter and 25.5% in the year-ago third quarter. The decrease in the effective tax rate for 2020 third quarter reflects projected annual income for 2020.

Balance Sheet Summary

New loan originations funded during the 2020 third quarter totaled $782.4 million and included non-PPP traditional SBA loan production of $48.2 million and residential mortgage loan originations of $102.3 million. In addition, four new warehouse mortgage lines of credit aggregating $500 million were booked during the 2020 third quarter, of which $301 million was funded as of September 30, 2020 and included in new loan originations for the 2020 third quarter. For the preceding 2020 second quarter, new loan originations funded totaled $832.0 million, including 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. In the year-ago third quarter, new loan originations funded totaled $693.9 million, including SBA loan production of $53.8 million and residential mortgage loan originations of $58.5 million. There were no new warehouse mortgage lines of credit established in the 2020 second quarter and 2019 third quarter.

At September 30, 2020, loans receivable increased 1.9% to $13.12 billion from $12.87 billion at June 30, 2020 and increased 8.4% from $12.10 billion at September 30, 2019.

Total deposits at September 30, 2020 decreased 0.8% quarter-over-quarter to $14.01 billion from $14.12 billion at June 30, 2020, reflecting a continuing positive shift in the mix of deposits. An increase of $452.1 million in noninterest bearing demand deposits during the 2020 third quarter and a decrease of $511.9 million in time deposits were the primary factors contributing to the quarter-over-quarter change in total deposits.

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

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

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

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

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

Operating Results for the 2020 Third Quarter

Net interest income before provision for credit losses for the 2020 third quarter increased 7% to $117.6 million from $109.8 million in the 2020 second quarter and increased 1% from $116.3 million in the 2019 third quarter. The Company attributed the increases to significant reductions in interest expense predominantly as a result of meaningful decreases in its total cost of deposits each period over the past four quarters. In addition, the Company reduced its FHLB borrowings by $300 million, or 60%, during the 2020 third quarter as part of an initiative to deploy excess liquidity built up in the early stages of the COVID-19 pandemic, which further reduced interest expense.

The net interest margin for the 2020 third quarter increased 12 basis points to 2.91% from 2.79% in the preceding second quarter. The primary factor contributing to the margin expansion was a 23 basis point reduction in total cost of deposits, which benefited net interest margin by approximately 15 basis points in the 2020 third quarter. The net interest margin for the 2019 third quarter was 3.25%.

The weighted average yield on loans for the 2020 third quarter was generally stable, decreasing 3 basis points to 4.20% from 4.23% in the 2020 second quarter. In the year-ago third quarter, the weighted average yield on loans was 5.27%.

The weighted average cost of deposits for the 2020 third quarter decreased 23 basis points to 0.64% from 0.87% for the 2020 second quarter and decreased 98 basis points from 1.62% for the year-ago third quarter. The significant improvements in the weighted average cost of deposits reflects in part the Company's ongoing success with its initiative to enhance its deposit mix to favor lower-cost core deposits, as well as strategic reductions in the offering rates on its interest bearing deposit accounts over the past four quarters.

Noninterest income for the 2020 third quarter increased 56% to $17.5 million from $11.2 million for the preceding second quarter and $13.0 million for the 2019 third quarter. The largest factor contributing to the increase was a $7.5 million net gain on the sale of $161 million of available-for-sale investment securities. This compares with zero in the 2020 second quarter and $153,000 in the 2019 third quarter. In addition, net gains on sales of other loans from sales of new residential mortgage originations increased to $2.9 million in the 2020 third quarter from $1.7 million in the preceding second quarter and $804,000 in the 2019 third quarter. These increases were partially offset by a reduction in other income and fees, which amounted to $1.7 million in the 2020 third quarter, compared with $4.4 million in the 2020 second quarter, largely reflecting a fair value change in derivatives as well as lower swap fee income. In the 2019 third quarter, other income and fees amounted to $4.9 million.

Noninterest expense for the 2020 third quarter totaled $73.4 million, compared with $67.0 million for the preceding second quarter and $70.0 million for the 2019 third quarter. During the 2020 third quarter, the Company incurred a $3.6 million prepayment penalty related to the early payoff of $300 million in FHLB borrowings discussed above. There were no such fees in the preceding second quarter or 2019 third quarter.

Salaries and employee benefits expense totaled $40.7 million, $38.9 million and $41.6 million for the 2020 third quarter, 2020 second quarter and 2019 third quarter. As disclosed last quarter, PPP loan origination costs of $5.2 million were deferred in the 2020 second quarter and materially reduced compensation expense for that quarter alone. Excluding the impact of the PPP loan origination costs in the 2020 second quarter, salaries and employee benefits expense declined quarter-over-quarter, as the 4% workforce reduction at the beginning of the third quarter reduced base salary and benefits expense by $1.6 million in the 2020 third quarter.

Noninterest expense as a percentage of average assets was 1.73% for the 2020 third quarter, 1.60% for the 2020 second quarter and 1.85% for the 2019 third quarter. Excluding the FHLB prepayment penalty, noninterest expense as a percentage of average assets for the 2020 third quarter was 1.64%.

The effective tax rate for the 2020 third quarter was 23.3%, compared with 26.8% for the preceding second quarter and 25.5% in the year-ago third quarter. The decrease in the effective tax rate for 2020 third quarter reflects projected annual income for 2020.

Balance Sheet Summary

New loan originations funded during the 2020 third quarter totaled $782.4 million and included non-PPP traditional SBA loan production of $48.2 million and residential mortgage loan originations of $102.3 million. In addition, four new warehouse mortgage lines of credit aggregating $500 million were booked during the 2020 third quarter, of which $301 million was funded as of September 30, 2020 and included in new loan originations for the 2020 third quarter. For the preceding 2020 second quarter, new loan originations funded totaled $832.0 million, including 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. In the year-ago third quarter, new loan originations funded totaled $693.9 million, including SBA loan production of $53.8 million and residential mortgage loan originations of $58.5 million. There were no new warehouse mortgage lines of credit established in the 2020 second quarter and 2019 third quarter.

At September 30, 2020, loans receivable increased 1.9% to $13.12 billion from $12.87 billion at June 30, 2020 and increased 8.4% from $12.10 billion at September 30, 2019.

Total deposits at September 30, 2020 decreased 0.8% quarter-over-quarter to $14.01 billion from $14.12 billion at June 30, 2020, reflecting a continuing positive shift in the mix of deposits. An increase of $452.1 million in noninterest bearing demand deposits during the 2020 third quarter and a decrease of $511.9 million in time deposits were the primary factors contributing to the quarter-over-quarter change in total deposits.

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

(dollars in % %thousands) 9/30/2020 6/30/2020 change 9/30/2019 change(unaudited)

Noninterestbearing $ 4,488,529 $ 4,036,383 11 % $ 3,033,371 48 %demanddeposits

Money market 4,763,893 4,831,679 (1) % 3,752,274 27 %and other

Saving 308,943 296,614 4 % 259,454 19 %deposits

Time 4,446,991 4,958,856 (10) % 5,189,651 (14) %deposits

Totaldeposit $ 14,008,356 $ 14,123,532 (1) % $ 12,234,750 14 %balances

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

Deposit Breakdown Cost of Deposits

(dollars in thousands) 9/30/ 6/30/ 9/30/ Q3 Q2 Q3(unaudited) 2020 2020 2019 2020 2020 2019

Noninterest bearing demand 32.1 % 28.6 % 24.8 % - % - % - %deposits

Money market and other 34.0 % 34.2 % 30.7 % 0.53 % 0.62 % 1.82 %

Saving deposits 2.2 % 2.1 % 2.1 % 1.19 % 1.22 % 1.06 %

Time deposits 31.7 % 35.1 % 42.4 % 1.30 % 1.71 % 2.41 %

Total deposit balances 100.0 % 100.0 % 100.0 % 0.64 % 0.87 % 1.62 %

At September 30, 2020, cash and due from banks totaled $629.1 million, a 57% reduction from $1.47 billion at June 30, 2020. During the 2020 third quarter, the Company made significant progress in redeploying excess liquidity on its balance sheet, which included an early payoff of $300 million in Federal Home Loan Borrowings, which had the positive effect of increasing net interest income by $503,000 and enhancing net interest margin by approximately 3.5 basis points in the 2020 third quarter. Other excess liquidity redeployment initiatives included further reduction of higher-cost time deposits and funding new loan growth for the quarter.

Allowance for Credit Losses

The 2020 third quarter provision for credit losses under the CECL methodology was $22.0 million, compared with $17.5 million for the preceding second quarter. This compares with a provision for loan losses under the prior incurred loss methodology of $2.1 million for the 2019 third quarter.

The provision for credit losses for the 2020 third quarter reflects updated macroeconomic variables incorporating the Moody's Analytics Baseline scenario published September 2020, updated qualitative factors in the Company's ACL methodology, relatively stable asset quality metrics and a low level of credit losses, as well as additional management overlays related to COVID-19 modifications and the recognition of risk from granting longer term modifications .

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

(dollars in thousands) (unaudited) 9/30/2020 6/30/2020 9/30/2019

Allowance for credit losses $ 179,849 $ 161,771 $ 93,882

Allowance for credit loss/loans receivable 1.37% 1.26% 0.78%

Allowance for credit losses/nonperforming 169.40% 127.79% 121.37%loans

Credit Quality

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

(dollars in thousands) (unaudited) 9/30/2020 6/30/2020 9/30/2019

Loans on nonaccrual status ^(1) $ 69,205 $ 82,137 $ 42,235

Delinquent loans 90 days or more on accrual 1,537 430 398 status ^(2)

Accruing troubled debt restructured loans 35,429 44,026 34,717

Total nonperforming loans 106,171 126,593 77,350

Other real estate owned 18,410 20,983 19,374

Total nonperforming assets $ 124,581 $ 147,576 $ 96,724

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $26.2 million, $30.3 million and $37.3 million, at September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

(2)

Excludes PCI loans totaling $15.5 million at September 30, 2019.

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

^ Excludes delinquent SBA loans that are guaranteed and currently in(1) liquidation totaling $26.2 million, $30.3 million and $37.3 million, at September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

^ Excludes PCI loans totaling $15.5 million at September 30, 2019.(2)

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

(dollars in thousands) (unaudited) 9/30/2020 6/30/2020 9/30/2019

Special Mention $ 153,388 $ 127,149 $ 139,848

Classified 318,542 299,368 268,622

Criticized $ 471,930 $ 426,517 $ 408,470

During the 2020 third quarter, net charge offs totaled $3.9 million, or 0.12% of average loans receivable on an annualized basis. This compares with net charge offs of $652,000, or 0.02% of average loans receivable on an annualized basis for the 2020 second quarter and net charge offs for the 2019 third quarter of $1.8 million, or 0.06% of average loans receivable on an annualized basis.

Capital

At September 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 September 30, 2020, June 30, 2020 and September 30, 2019:

Minimum GuidelineHope Bancorp, Inc. 9/30/ 6/30/ 9/30/ for(unaudited) 2020 2020 2019 "Well-Capitalized" Bank

Common Equity Tier 1 11.36% 11.50% 11.89% 6.50%Capital

Tier 1 Leverage Ratio 10.02% 10.08% 11.18% 5.00%

Tier 1 Risk-Based Ratio 12.09% 12.24% 12.65% 8.00%

Total Risk-Based Ratio 13.19% 13.23% 13.38% 10.00%

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

(unaudited) 9/30/2020 6/30/2020 9/30/2019

Tangible common equity per share ^(1) $12.70 $12.62 $12.27

Tangible common equity to tangible assets ^ 9.63% 9.32% 10.43%(2)

(1)

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

(2)

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

Investor Conference Call

The Company previously announced that it will host an investor conference call on Wednesday, October 21, 2020 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its third quarter ended September 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 October 28, 2020, replay access code 10148641.

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 $16.7 billion in total assets as of September 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 and Alabama. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, Oregon, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.

Forward-Looking Statements

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

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

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

Investor Conference Call

The Company previously announced that it will host an investor conference call on Wednesday, October 21, 2020 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review financial results for its third quarter ended September 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 October 28, 2020, replay access code 10148641.

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 $16.7 billion in total assets as of September 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 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 and per share data)



Assets: 9/30/2020 6/30/2020 % 12/31/2019 % 9/30/2019 % change change change

Cash and due $ 629,133 $ 1,468,949 (57 ) % $ 698,567 (10 ) % $ 549,356 15 %from banks

Securitiesavailable for 2,060,991 1,887,604 9 % 1,715,987 20 % 1,772,322 16 %sale, at fairvalue

Federal HomeLoan Bank("FHLB") 97,305 98,357 (1 ) % 97,659 - % 98,848 (2 ) %stock andotherinvestments

Loans heldfor sale, atthe lower of 9,170 11,350 (19 ) % 54,271 (83 ) % 29,627 (69 ) %cost or fairvalue

Loans 13,120,225 12,871,834 2 % 12,276,007 7 % 12,104,682 8 %receivable

Allowance for (179,849 ) (161,771 ) 11 % (94,144 ) 91 % (93,882 ) 92 %credit losses

Net loans 12,940,376 12,710,063 2 % 12,181,863 6 % 12,010,800 8 %receivable

Accruedinterest 57,989 52,859 10 % 30,772 88 % 29,743 95 %receivable

Premises andequipment, 49,552 51,029 (3 ) % 52,012 (5 ) % 52,604 (6 ) %net

Bank ownedlife 77,388 77,050 - % 76,339 1 % 75,968 2 %insurance

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

Servicing 13,718 14,164 (3 ) % 16,417 (16 ) % 17,865 (23 ) %assets

Otherintangible 10,239 10,770 (5 ) % 11,833 (13 ) % 12,390 (17 ) %assets, net

Other assets 323,456 322,417 - % 267,270 21 % 265,905 22 %

Total assets $ 16,733,767 $ 17,169,062 (3 ) % $ 15,667,440 7 % $ 15,379,878 9 %



Liabilities:

Deposits $ 14,008,356 $ 14,123,532 (1 ) % $ 12,527,364 12 % $ 12,234,750 14 %

FHLB advances 200,000 500,000 (60 ) % 625,000 (68 ) % 625,000 (68 ) %

Convertible 203,270 201,987 1 % 199,458 2 % 198,211 3 %notes, net

Subordinated 103,889 103,602 - % 103,035 1 % 102,755 1 %debentures

Accruedinterest 21,991 26,093 (16 ) % 33,810 (35 ) % 38,197 (42 ) %payable

Other 155,700 183,072 (15 ) % 142,762 9 % 149,681 4 %liabilities

Total $ 14,693,206 $ 15,138,286 (3 ) % $ 13,631,429 8 % $ 13,348,594 10 %liabilities



Stockholders' Equity:

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

Capital 1,432,773 1,430,757 - % 1,428,066 - % 1,426,666 - %surplus

Retained 774,970 761,734 2 % 762,480 2 % 737,209 5 %earnings

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

Accumulatedother 32,682 38,149 (14 ) % 9,149 257 % 17,273 89 %comprehensivegain, net

Totalstockholders' 2,040,561 2,030,776 - % 2,036,011 - % 2,031,284 - %equity

Totalliabilitiesand $ 16,733,767 $ 17,169,062 (3 ) % $ 15,667,440 7 % $ 15,379,878 9 %stockholders'equity



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

Common stockshares - 123,260,760 123,239,276 125,756,543 126,697,925 outstanding

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

Hope Bancorp, Inc.

Selected Financial Data

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

Three Months Ended

Nine Months Ended

9/30/2020

6/30/2020

% change

9/30/2019

% change

9/30/2020

9/30/2019

% change

Interest and fees on loans

$

134,430

$

134,190

-

%

$

158,115

(15

)

%

$

422,850

$

474,878

(11

)

%

Interest on securities

9,848

9,891

-

%

11,373

(13

)

%

30,348

35,558

(15

)

%

Interest on federal funds sold and other investments

942

980

(4

)

%

2,929

(68

)

%

3,951

8,577

(54

)

%

Total interest income

145,220

145,061

-

%

172,417

(16

)

%

457,149

519,013

(12

)

%

Interest on deposits

22,871

29,451

(22

)

%

49,057

(53

)

%

93,435

144,730

(35

)

%

Interest on other borrowings and convertible notes

4,712

5,796

(19

)

%

7,102

(34

)

%

16,972

21,196

(20

)

%

Total interest expense

27,583

35,247

(22

)

%

56,159

(51

)

%

110,407

165,926

(33

)

%

Net interest income before provision for credit losses

117,637

109,814

7

%

116,258

1

%

346,742

353,087

(2

)

%

Provision for credit losses

22,000

17,500

26

%

2,100

948

%

67,500

6,300

971

%

Net interest income after provision for credit losses

95,637

92,314

4

%

114,158

(16

)

%

279,242

346,787

(19

)

%

Service fees on deposit accounts

2,736

2,583

6

%

4,690

(42

)

%

9,452

13,423

(30

)

%

International service fees

987

667

48

%

1,193

(17

)

%

2,443

3,146

(22

)

%

Loan servicing fees, net

772

1,106

(30

)

%

189

308

%

2,243

1,656

35

%

Wire transfer fees

892

820

9

%

1,058

(16

)

%

2,710

3,458

(22

)

%

Net gains on sales of other loans

2,853

1,678

70

%

804

255

%

6,386

2,611

145

%

Net gains on sales of securities available for sale

7,531

-

100

%

153

4,822

%

7,531

282

2,571

%

Other income and fees

1,742

4,386

(60

)

%

4,908

(65

)

%

11,252

12,128

(7

)

%

Total noninterest income

17,513

11,240

56

%

12,995

35

%

42,017

36,704

14

%

Salaries and employee benefits

40,659

38,850

5

%

41,607

(2

)

%

122,011

121,333

1

%

Occupancy

7,264

7,043

3

%

7,703

(6

)

%

21,717

23,219

(6

)

%

Furniture and equipment

4,513

4,654

(3

)

%

3,851

17

%

13,426

11,323

19

%

Advertising and marketing

1,601

1,315

22

%

2,377

(33

)

%

4,589

6,684

(31

)

%

Data processing and communications

2,204

2,274

(3

)

%

2,821

(22

)

%

7,109

8,364

(15

)

%

Professional fees

1,513

1,510

-

%

5,241

(71

)

%

6,323

16,580

(62

)

%

FDIC assessment

1,167

1,652

(29

)

%

-

100

%

4,378

3,110

41

%

Credit related expenses

1,793

1,361

32

%

1,031

74

%

4,816

3,258

48

%

OREO expense (income), net

1,770

1,338

32

%

(743

)

N/A

3,951

(812

)

N/A

FHLB prepayment fee

3,584

-

100

%

-

100

%

3,584

-

100

%

Other

7,338

7,033

4

%

6,107

20

%

20,672

19,140

8

%

Total noninterest expense

73,406

67,030

10

%

69,995

5

%

212,576

212,199

-

%

Income before income taxes

39,744

36,524

9

%

57,158

(30

)

%

108,683

171,292

(37

)

%

Income tax provision

9,254

9,771

(5

)

%

14,566

(36

)

%

25,487

43,261

(41

)

%

Net income

$

30,490

$

26,753

14

%

$

42,592

(28

)

%

$

83,196

$

128,031

(35

)

%

Earnings Per Common Share:

Basic

$

0.25

$

0.22

$

0.34

$

0.67

$

1.01

Diluted

$

0.25

$

0.22

$

0.34

$

0.67

$

1.01

Weighted Average Shares Outstanding:

Basic

123,251,336

123,200,127

126,685,921

123,581,055

126,661,798

Diluted

123,536,765

123,430,891

127,007,469

123,895,084

126,895,970

Hope Bancorp, Inc.

Selected Financial Data

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



Three Months Ended Nine Months Ended

9/30/2020 6/30/2020 % 9/30/2019 % change 9/30/2020 9/30/2019 % change change



Interest and $ 134,430 $ 134,190 - % $ 158,115 (15 ) % $ 422,850 $ 474,878 (11 ) %fees on loans

Interest on 9,848 9,891 - % 11,373 (13 ) % 30,348 35,558 (15 ) %securities

Interest onfederal funds 942 980 (4 ) % 2,929 (68 ) % 3,951 8,577 (54 ) %sold and otherinvestments

Total interest 145,220 145,061 - % 172,417 (16 ) % 457,149 519,013 (12 ) %income



Interest on 22,871 29,451 (22 ) % 49,057 (53 ) % 93,435 144,730 (35 ) %deposits

Interest onotherborrowings and 4,712 5,796 (19 ) % 7,102 (34 ) % 16,972 21,196 (20 ) %convertiblenotes

Total interest 27,583 35,247 (22 ) % 56,159 (51 ) % 110,407 165,926 (33 ) %expense



Net interestincome before 117,637 109,814 7 % 116,258 1 % 346,742 353,087 (2 ) %provision forcredit losses

Provision for 22,000 17,500 26 % 2,100 948 % 67,500 6,300 971 %credit losses

Net interestincome after 95,637 92,314 4 % 114,158 (16 ) % 279,242 346,787 (19 ) %provision forcredit losses



Service feeson deposit 2,736 2,583 6 % 4,690 (42 ) % 9,452 13,423 (30 ) %accounts

International 987 667 48 % 1,193 (17 ) % 2,443 3,146 (22 ) %service fees

Loan servicing 772 1,106 (30 ) % 189 308 % 2,243 1,656 35 %fees, net

Wire transfer 892 820 9 % 1,058 (16 ) % 2,710 3,458 (22 ) %fees

Net gains onsales of other 2,853 1,678 70 % 804 255 % 6,386 2,611 145 %loans

Net gains onsales ofsecurities 7,531 - 100 % 153 4,822 % 7,531 282 2,571 %available forsale

Other income 1,742 4,386 (60 ) % 4,908 (65 ) % 11,252 12,128 (7 ) %and fees

Totalnoninterest 17,513 11,240 56 % 12,995 35 % 42,017 36,704 14 %income



Salaries andemployee 40,659 38,850 5 % 41,607 (2 ) % 122,011 121,333 1 %benefits

Occupancy 7,264 7,043 3 % 7,703 (6 ) % 21,717 23,219 (6 ) %

Furniture and 4,513 4,654 (3 ) % 3,851 17 % 13,426 11,323 19 %equipment

Advertising 1,601 1,315 22 % 2,377 (33 ) % 4,589 6,684 (31 ) %and marketing

Dataprocessing and 2,204 2,274 (3 ) % 2,821 (22 ) % 7,109 8,364 (15 ) %communications

Professional 1,513 1,510 - % 5,241 (71 ) % 6,323 16,580 (62 ) %fees

FDIC 1,167 1,652 (29 ) % - 100 % 4,378 3,110 41 %assessment

Credit related 1,793 1,361 32 % 1,031 74 % 4,816 3,258 48 %expenses

OREO expense 1,770 1,338 32 % (743 ) N/A 3,951 (812 ) N/A (income), net

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

Other 7,338 7,033 4 % 6,107 20 % 20,672 19,140 8 %

Totalnoninterest 73,406 67,030 10 % 69,995 5 % 212,576 212,199 - %expense

Income before 39,744 36,524 9 % 57,158 (30 ) % 108,683 171,292 (37 ) %income taxes

Income tax 9,254 9,771 (5 ) % 14,566 (36 ) % 25,487 43,261 (41 ) %provision

Net income $ 30,490 $ 26,753 14 % $ 42,592 (28 ) % $ 83,196 $ 128,031 (35 ) %



Earnings Per Common Share:

Basic $ 0.25 $ 0.22 $ 0.34 $ 0.67 $ 1.01

Diluted $ 0.25 $ 0.22 $ 0.34 $ 0.67 $ 1.01



WeightedAverage Shares Outstanding:

Basic 123,251,336 123,200,127 126,685,921 123,581,055 126,661,798

Diluted 123,536,765 123,430,891 127,007,469 123,895,084 126,895,970

Hope Bancorp, Inc.

Selected Financial Data

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

For the Three Months Ended(Annualized)

For the Nine Months Ended(Annualized)

Profitability measures:

9/30/2020

6/30/2020

9/30/2019

9/30/2020

9/30/2019

ROA

0.72

%

0.64

%

1.12

%

0.68

%

1.12

%

ROE

5.98

%

5.31

%

8.47

%

5.47

%

8.69

%

ROTCE (1)

7.80

%

6.94

%

11.11

%

7.14

%

11.48

%

Net interest margin

2.91

%

2.79

%

3.25

%

2.99

%

3.31

%

Efficiency ratio

54.31

%

55.37

%

54.15

%

54.68

%

54.44

%

Noninterest expense / average assets

1.73

%

1.60

%

1.85

%

1.73

%

1.86

%

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

Three Months Ended

Nine Months Ended

Pre-tax acquisition accounting adjustments and merger-related expenses:

9/30/2020

6/30/2020

9/30/2019

9/30/2020

9/30/2019

Accretion on purchased non-impaired loans

$

747

$

658

$

2,046

$

2,464

$

6,011

Accretion on purchased credit deteriorated/purchased credit impaired loans

4,584

3,046

5,234

17,079

17,916

Amortization of premium on low income housing tax credits

(71)

(70)

(75)

(212)

(227)

Amortization of premium on acquired FHLB borrowings

-

-

-

-

1,280

Accretion of discount on acquired subordinated debt

(287)

(284)

(278)

(854)

(826)

Amortization of core deposit intangibles

(531)

(532)

(557)

(1,594)

(1,671)

Total acquisition accounting adjustments

$

4,442

$

2,818

$

6,370

$

16,883

$

22,483

Hope Bancorp, Inc.

Selected Financial Data

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



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

Profitability 9/30/2020 6/30/2020 9/30/2019 9/30/2020 9/30/2019measures:

ROA 0.72 % 0.64 % 1.12 % 0.68 % 1.12 %

ROE 5.98 % 5.31 % 8.47 % 5.47 % 8.69 %

ROTCE ^(1) 7.80 % 6.94 % 11.11 % 7.14 % 11.48 %

Net interest margin 2.91 % 2.79 % 3.25 % 2.99 % 3.31 %

Efficiency ratio 54.31 % 55.37 % 54.15 % 54.68 % 54.44 %

Noninterest expense 1.73 % 1.60 % 1.85 % 1.73 % 1.86 %/ 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 Nine Months Ended

Pre-tax acquisitionaccountingadjustments and 9/30/2020 6/30/2020 9/30/2019 9/30/2020 9/30/2019merger-relatedexpenses:

Accretion onpurchased $ 747 $ 658 $ 2,046 $ 2,464 $ 6,011 non-impaired loans

Accretion onpurchased creditdeteriorated/ 4,584 3,046 5,234 17,079 17,916 purchased creditimpaired loans

Amortization ofpremium on low (71) (70) (75) (212) (227) income housing taxcredits

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

Accretion ofdiscount on (287) (284) (278) (854) (826) acquiredsubordinated debt

Amortization ofcore deposit (531) (532) (557) (1,594) (1,671) intangibles

Total acquisitionaccounting $ 4,442 $ 2,818 $ 6,370 $ 16,883 $ 22,483 adjustments



Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

9/30/2020

6/30/2020

9/30/2019

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, including loans held for sale

$

12,728,558

$

134,430

4.20

%

$

12,755,088

$

134,190

4.23

%

$

11,911,658

$

158,115

5.27

%

Securities available for sale

2,010,907

9,848

1.95

%

1,750,156

9,891

2.27

%

1,798,239

11,373

2.51

%

FHLB stock and other investments

1,342,641

942

0.28

%

1,317,049

980

0.30

%

482,952

2,929

2.41

%

Total interest earning assets

$

16,082,106

$

145,220

3.59

%

$

15,822,293

$

145,061

3.69

%

$

14,192,849

$

172,417

4.82

%

INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest bearing

$

4,895,101

$

6,546

0.53

%

$

4,903,786

$

7,563

0.62

%

$

3,450,749

$

15,802

1.82

%

Savings

302,882

907

1.19

%

284,050

862

1.22

%

252,780

675

1.06

%

Time deposits

4,703,640

15,418

1.30

%

4,954,446

21,026

1.71

%

5,368,753

32,580

2.41

%

Total interest bearing deposits

9,901,623

22,871

0.92

%

10,142,282

29,451

1.17

%

9,072,282

49,057

2.15

%

FHLB advances

353,587

1,323

1.49

%

593,407

2,238

1.52

%

632,500

3,112

1.95

%

Convertible notes, net

202,470

2,370

4.58

%

201,169

2,358

4.64

%

197,410

2,322

4.60

%

Subordinated debentures

99,819

1,019

3.99

%

99,534

1,200

4.77

%

98,690

1,668

6.61

%

Total interest bearing liabilities

$

10,557,499

$

27,583

1.04

%

$

11,036,392

$

35,247

1.28

%

$

10,000,882

$

56,159

2.23

%

Noninterest bearing demand deposits

4,239,108

3,510,783

2,958,233

Total funding liabilities/cost of funds

$

14,796,607

0.74

%

$

14,547,175

0.97

%

$

12,959,115

1.72

%

Net interest income/net interest spread

$

117,637

2.55

%

$

109,814

2.41

%

$

116,258

2.59

%

Net interest margin

2.91

%

2.79

%

3.25

%

Cost of deposits:

Noninterest bearing demand deposits

$

4,239,108

$

-

-

%

$

3,510,783

$

-

-

%

$

2,958,233

$

-

-

%

Interest bearing deposits

9,901,623

22,871

0.92

%

10,142,282

29,451

1.17

%

9,072,282

49,057

2.15

%

Total deposits

$

14,140,731

$

22,871

0.64

%

$

13,653,065

$

29,451

0.87

%

$

12,030,515

$

49,057

1.62

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



Three Months Ended

9/30/2020 6/30/2020 9/30/2019

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 $ 12,728,558 $ 134,430 4.20 % $ 12,755,088 $ 134,190 4.23 % $ 11,911,658 $ 158,115 5.27 %sale

Securitiesavailable for 2,010,907 9,848 1.95 % 1,750,156 9,891 2.27 % 1,798,239 11,373 2.51 %sale

FHLB stock andother 1,342,641 942 0.28 % 1,317,049 980 0.30 % 482,952 2,929 2.41 %investments

Total interest $ 16,082,106 $ 145,220 3.59 % $ 15,822,293 $ 145,061 3.69 % $ 14,192,849 $ 172,417 4.82 %earning assets



INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest $ 4,895,101 $ 6,546 0.53 % $ 4,903,786 $ 7,563 0.62 % $ 3,450,749 $ 15,802 1.82 %bearing

Savings 302,882 907 1.19 % 284,050 862 1.22 % 252,780 675 1.06 %

Time deposits 4,703,640 15,418 1.30 % 4,954,446 21,026 1.71 % 5,368,753 32,580 2.41 %

Total interest 9,901,623 22,871 0.92 % 10,142,282 29,451 1.17 % 9,072,282 49,057 2.15 %bearing deposits

FHLB advances 353,587 1,323 1.49 % 593,407 2,238 1.52 % 632,500 3,112 1.95 %

Convertible 202,470 2,370 4.58 % 201,169 2,358 4.64 % 197,410 2,322 4.60 %notes, net

Subordinated 99,819 1,019 3.99 % 99,534 1,200 4.77 % 98,690 1,668 6.61 %debentures

Total interestbearing $ 10,557,499 $ 27,583 1.04 % $ 11,036,392 $ 35,247 1.28 % $ 10,000,882 $ 56,159 2.23 %liabilities

Noninterestbearing demand 4,239,108 3,510,783 2,958,233 deposits

Total fundingliabilities/cost $ 14,796,607 0.74 % $ 14,547,175 0.97 % $ 12,959,115 1.72 %of funds

Net interestincome/net $ 117,637 2.55 % $ 109,814 2.41 % $ 116,258 2.59 %interest spread

Net interest 2.91 % 2.79 % 3.25 %margin



Cost of deposits:

Noninterestbearing demand $ 4,239,108 $ - - % $ 3,510,783 $ - - % $ 2,958,233 $ - - %deposits

Interest bearing 9,901,623 22,871 0.92 % 10,142,282 29,451 1.17 % 9,072,282 49,057 2.15 %deposits

Total deposits $ 14,140,731 $ 22,871 0.64 % $ 13,653,065 $ 29,451 0.87 % $ 12,030,515 $ 49,057 1.62 %

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Nine Months Ended

9/30/2020

9/30/2019

Interest

Annualized

Interest

Annualized

Average

Income/

Average

Average

Income/

Average

Balance

Expense

Yield/Cost

Balance

Expense

Yield/Cost

INTEREST EARNING ASSETS:

Loans, including loans held for sale

$

12,581,703

$

422,850

4.49

%

$

11,985,936

$

474,878

5.30

%

Securities available for sale

1,825,046

30,348

2.22

%

1,810,068

35,558

2.63

%

FHLB stock and other investments

1,060,699

3,951

0.50

%

450,028

8,577

2.55

%

Total interest earning assets

$

15,467,448

$

457,149

3.95

%

$

14,246,032

$

519,013

4.87

%

INTEREST BEARING LIABILITIES:

Deposits:

Demand, interest bearing

$

4,668,594

$

28,988

0.83

%

$

3,197,313

$

42,807

1.79

%

Savings

287,060

2,578

1.20

%

234,203

1,848

1.05

%

Time deposits

4,852,286

61,869

1.70

%

5,694,778

100,075

2.35

%

Total interest bearing deposits

9,807,940

93,435

1.27

%

9,126,294

144,730

2.12

%

FHLB advances

513,376

6,208

1.62

%

715,814

9,110

1.70

%

Convertible notes, net

201,204

7,074

4.62

%

196,217

6,930

4.66

%

Subordinated debentures

99,536

3,690

4.87

%

98,410

5,156

6.91

%

Total interest bearing liabilities

$

10,622,056

$

110,407

1.39

%

$

10,136,735

$

165,926

2.19

%

Noninterest bearing demand deposits

3,573,448

2,931,080

Total funding liabilities/cost of funds

$

14,195,504

1.04

%

$

13,067,815

1.70

%

Net interest income/net interest spread

$

346,742

2.56

%

$

353,087

2.68

%

Net interest margin

2.99

%

3.31

%

Cost of deposits:

Noninterest bearing demand deposits

$

3,573,448

$

-

-

%

$

2,931,080

$

-

-

%

Interest bearing deposits

9,807,940

93,435

1.27

%

9,126,294

144,730

2.12

%

Total deposits

$

13,381,388

$

93,435

0.93

%

$

12,057,374

$

144,730

1.60

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



Nine Months Ended

9/30/2020 9/30/2019

Interest Annualized Interest Annualized

Average Income/ Average Average Income/ Average

Balance Expense Yield/Cost Balance Expense Yield/Cost

INTERESTEARNING ASSETS:

Loans,including $ 12,581,703 $ 422,850 4.49 % $ 11,985,936 $ 474,878 5.30 % loans heldfor sale

Securitiesavailable 1,825,046 30,348 2.22 % 1,810,068 35,558 2.63 % for sale

FHLB stockand other 1,060,699 3,951 0.50 % 450,028 8,577 2.55 % investments

Totalinterest $ 15,467,448 $ 457,149 3.95 % $ 14,246,032 $ 519,013 4.87 % earningassets



INTERESTBEARING LIABILITIES:

Deposits:

Demand,interest $ 4,668,594 $ 28,988 0.83 % $ 3,197,313 $ 42,807 1.79 % bearing

Savings 287,060 2,578 1.20 % 234,203 1,848 1.05 %

Time 4,852,286 61,869 1.70 % 5,694,778 100,075 2.35 % deposits

Totalinterest 9,807,940 93,435 1.27 % 9,126,294 144,730 2.12 % bearingdeposits

FHLB 513,376 6,208 1.62 % 715,814 9,110 1.70 % advances

Convertible 201,204 7,074 4.62 % 196,217 6,930 4.66 % notes, net

Subordinated 99,536 3,690 4.87 % 98,410 5,156 6.91 % debentures

Totalinterest $ 10,622,056 $ 110,407 1.39 % $ 10,136,735 $ 165,926 2.19 % bearingliabilities

Noninterestbearing 3,573,448 2,931,080 demanddeposits

Totalfundingliabilities/ $ 14,195,504 1.04 % $ 13,067,815 1.70 % cost offunds

Net interestincome/net $ 346,742 2.56 % $ 353,087 2.68 % interestspread

Net interest 2.99 % 3.31 % margin



Cost of deposits:

Noninterestbearing $ 3,573,448 $ - - % $ 2,931,080 $ - - % demanddeposits

Interestbearing 9,807,940 93,435 1.27 % 9,126,294 144,730 2.12 % deposits

Total $ 13,381,388 $ 93,435 0.93 % $ 12,057,374 $ 144,730 1.60 % deposits



Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

Nine Months Ended

AVERAGE BALANCES:

9/30/2020

6/30/2020

% change

9/30/2019

% change

9/30/2020

9/30/2019

% change

Loans receivable, including loans held for sale

$

12,728,558

$

12,755,088

-

%

$

11,911,658

7

%

$

12,581,703

$

11,985,936

5

%

Investments

3,353,548

3,067,205

9

%

2,281,191

47

%

2,885,745

2,260,096

28

%

Interest earning assets

16,082,106

15,822,293

2

%

14,192,849

13

%

15,467,448

14,246,032

9

%

Total assets

17,020,795

16,759,147

2

%

15,154,661

12

%

16,411,150

15,209,668

8

%

Interest bearing deposits

9,901,623

10,142,282

(2)

%

9,072,282

9

%

9,807,940

9,126,294

7

%

Interest bearing liabilities

10,557,499

11,036,392

(4)

%

10,000,882

6

%

10,622,056

10,136,735

5

%

Noninterest bearing demand deposits

4,239,108

3,510,783

21

%

2,958,233

43

%

3,573,448

2,931,080

22

%

Stockholders' equity

2,039,555

2,016,947

1

%

2,010,458

1

%

2,028,074

1,964,146

3

%

Net interest earning assets

5,524,607

4,785,901

15

%

4,191,967

32

%

4,845,392

4,109,297

18

%

LOAN PORTFOLIO COMPOSITION:

9/30/2020

6/30/2020

% change

12/31/2019

% change

9/30/2019

% change

Commercial loans

$

3,700,020

$

3,415,111

8

%

$

2,719,818

36

%

$

2,645,770

40

%

Real estate loans

8,713,536

8,686,939

-

%

8,666,901

1

%

8,586,989

1

%

Consumer and other loans

706,669

769,784

(8)

%

889,288

(21)

%

871,923

(19)

%

Loans, net of deferred loan fees and costs

13,120,225

12,871,834

2

%

12,276,007

7

%

12,104,682

8

%

Allowance for credit losses

(179,849)

(161,771)

11

%

(94,144)

91

%

(93,882)

92

%

Loan receivable, net

$

12,940,376

$

12,710,063

2

%

$

12,181,863

6

%

$

12,010,800

8

%

REAL ESTATE LOANS BY PROPERTY TYPE:

9/30/2020

6/30/2020

% change

12/31/2019

% change

9/30/2019

% change

Retail buildings

$

2,311,516

$

2,278,448

1

%

$

2,298,872

1

%

$

2,304,346

-

%

Hotels/motels

1,675,960

1,701,909

(2)

%

1,709,189

(2)

%

1,664,311

1

%

Gas stations/car washes

824,378

836,314

(1)

%

844,081

(2)

%

911,494

(10)

%

Mixed-use facilities

754,096

706,827

7

%

785,882

(4)

%

743,428

1

%

Warehouses

1,022,657

1,040,303

(2)

%

1,030,876

(1)

%

949,336

8

%

Multifamily

518,295

497,948

4

%

465,397

11

%

473,640

9

%

Other

1,606,634

1,625,190

(1)

%

1,532,604

5

%

1,540,434

4

%

Total

$

8,713,536

$

8,686,939

-

%

$

8,666,901

1

%

$

8,586,989

1

%

DEPOSIT COMPOSITION

9/30/2020

6/30/2020

% change

12/31/2019

% change

9/30/2019

% change

Noninterest bearing demand deposits

$

4,488,529

$

4,036,383

11

%

$

3,108,687

44

%

$

3,033,371

48

%

Money market and other

4,763,893

4,831,679

(1)

%

3,985,556

20

%

3,752,274

27

%

Saving deposits

308,943

296,614

4

%

274,151

13

%

259,454

19

%

Time deposits

4,446,991

4,958,856

(10)

%

5,158,970

(14)

%

5,189,651

(14)

%

Total deposit balances

$

14,008,356

$

14,123,532

(1)

%

$

12,527,364

12

%

$

12,234,750

14

%

DEPOSIT COMPOSITION (%)

9/30/2020

6/30/2020

12/31/2019

9/30/2019

Noninterest bearing demand deposits

32.1

%

28.6

%

24.8

%

24.8

%

Money market and other

34.0

%

34.2

%

31.8

%

30.7

%

Saving deposits

2.2

%

2.1

%

2.2

%

2.1

%

Time deposits

31.7

%

35.1

%

41.2

%

42.4

%

Total deposit balances

100.0

%

100.0

%

100.0

%

100.0

%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



Three Months Ended Nine Months Ended

AVERAGE 9/30/2020 6/30/2020 % 9/30/2019 % 9/30/2020 9/30/2019 %BALANCES: change change change

Loansreceivable,including $ 12,728,558 $ 12,755,088 - % $ 11,911,658 7 % $ 12,581,703 $ 11,985,936 5 %loans heldfor sale

Investments 3,353,548 3,067,205 9 % 2,281,191 47 % 2,885,745 2,260,096 28 %

Interestearning 16,082,106 15,822,293 2 % 14,192,849 13 % 15,467,448 14,246,032 9 %assets

Total assets 17,020,795 16,759,147 2 % 15,154,661 12 % 16,411,150 15,209,668 8 %



Interestbearing 9,901,623 10,142,282 (2) % 9,072,282 9 % 9,807,940 9,126,294 7 %deposits

Interestbearing 10,557,499 11,036,392 (4) % 10,000,882 6 % 10,622,056 10,136,735 5 %liabilities

Noninterestbearing 4,239,108 3,510,783 21 % 2,958,233 43 % 3,573,448 2,931,080 22 %demanddeposits

Stockholders' 2,039,555 2,016,947 1 % 2,010,458 1 % 2,028,074 1,964,146 3 %equity

Net interestearning 5,524,607 4,785,901 15 % 4,191,967 32 % 4,845,392 4,109,297 18 %assets



LOAN % %PORTFOLIO 9/30/2020 6/30/2020 change 12/31/2019 change 9/30/2019 % change COMPOSITION:

Commercial $ 3,700,020 $ 3,415,111 8 % $ 2,719,818 36 % $ 2,645,770 40 % loans

Real estate 8,713,536 8,686,939 - % 8,666,901 1 % 8,586,989 1 % loans

Consumer and 706,669 769,784 (8) % 889,288 (21) % 871,923 (19) % other loans

Loans, net ofdeferred loan 13,120,225 12,871,834 2 % 12,276,007 7 % 12,104,682 8 % fees andcosts

Allowance for (179,849) (161,771) 11 % (94,144) 91 % (93,882) 92 % credit losses

Loanreceivable, $ 12,940,376 $ 12,710,063 2 % $ 12,181,863 6 % $ 12,010,800 8 % net



REAL ESTATELOANS BY 9/30/2020 6/30/2020 % 12/31/2019 % 9/30/2019 % change PROPERTY change changeTYPE:

Retail $ 2,311,516 $ 2,278,448 1 % $ 2,298,872 1 % $ 2,304,346 - % buildings

Hotels/motels 1,675,960 1,701,909 (2) % 1,709,189 (2) % 1,664,311 1 %

Gas stations/ 824,378 836,314 (1) % 844,081 (2) % 911,494 (10) % car washes

Mixed-use 754,096 706,827 7 % 785,882 (4) % 743,428 1 % facilities

Warehouses 1,022,657 1,040,303 (2) % 1,030,876 (1) % 949,336 8 %

Multifamily 518,295 497,948 4 % 465,397 11 % 473,640 9 %

Other 1,606,634 1,625,190 (1) % 1,532,604 5 % 1,540,434 4 %

Total $ 8,713,536 $ 8,686,939 - % $ 8,666,901 1 % $ 8,586,989 1 %



DEPOSIT 9/30/2020 6/30/2020 % 12/31/2019 % 9/30/2019 % change COMPOSITION change change

Noninterestbearing $ 4,488,529 $ 4,036,383 11 % $ 3,108,687 44 % $ 3,033,371 48 % demanddeposits

Money market 4,763,893 4,831,679 (1) % 3,985,556 20 % 3,752,274 27 % and other

Saving 308,943 296,614 4 % 274,151 13 % 259,454 19 % deposits

Time deposits 4,446,991 4,958,856 (10) % 5,158,970 (14) % 5,189,651 (14) %

Total deposit $ 14,008,356 $ 14,123,532 (1) % $ 12,527,364 12 % $ 12,234,750 14 % balances



DEPOSITCOMPOSITION 9/30/2020 6/30/2020 12/31/2019 9/30/2019 (%)

Noninterestbearing 32.1 % 28.6 % 24.8 % 24.8 % demanddeposits

Money market 34.0 % 34.2 % 31.8 % 30.7 % and other

Saving 2.2 % 2.1 % 2.2 % 2.1 % deposits

Time deposits 31.7 % 35.1 % 41.2 % 42.4 %

Total deposit 100.0 % 100.0 % 100.0 % 100.0 % balances

Hope Bancorp, Inc.

Selected Financial Data

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

CAPITAL RATIOS:

9/30/2020

6/30/2020

12/31/2019

9/30/2019

Total stockholders' equity

$

2,040,561

$

2,030,776

$

2,036,011

$

2,031,284

Common equity tier 1 ratio

11.36

%

11.50

%

11.76

%

11.89

%

Tier 1 risk-based capital ratio

12.09

%

12.24

%

12.51

%

12.65

%

Total risk-based capital ratio

13.19

%

13.23

%

13.23

%

13.38

%

Tier 1 leverage ratio

10.02

%

10.08

%

11.22

%

11.18

%

Total risk weighted assets

$

13,691,823

$

13,388,522

$

13,208,299

$

12,951,936

Book value per common share

$

16.55

$

16.48

$

16.19

$

16.03

Tangible common equity to tangible assets 1

9.63

%

9.32

%

10.27

%

10.43

%

Tangible common equity per share 1

$

12.70

$

12.62

$

12.40

$

12.27

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

Nine Months Ended

ALLOWANCE FOR CREDIT LOSSES CHANGES:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

9/30/2020

9/30/2019

Balance at beginning of period

$

161,771

$

144,923

$

94,144

$

93,882

$

94,066

$

94,144

$

92,557

CECL day 1 adoption impact

-

-

26,200

-

-

26,200

-

Provision for credit losses

22,000

17,500

28,000

1,000

2,100

67,500

6,300

Recoveries

2,428

252

2,536

939

780

5,216

2,797

Charge offs

(6,350)

(904)

(5,957)

(1,677)

(2,602)

(13,211)

(6,432)

PCI allowance adjustment

-

-

-

-

(462)

-

(1,340)

Balance at end of period

$

179,849

$

161,771

$

144,923

$

94,144

$

93,882

$

179,849

$

93,882

Net charge offs/average loans receivable (annualized)

0.12

%

0.02

%

0.11

%

0.02

%

0.06

%

0.08

%

0.04

%

Three Months Ended

Nine Months Ended

NET LOAN CHARGE OFFS (RECOVERIES):

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

9/30/2020

9/30/2019

Real estate loans

$

5,154

$

148

$

2,230

$

203

$

951

$

7,532

$

(504)

Commercial loans

(1,451)

240

676

245

596

(535)

3,245

Consumer loans

219

264

515

290

275

998

894

Total net charge offs

$

3,922

$

652

$

3,421

$

738

$

1,822

$

7,995

$

3,635

Hope Bancorp, Inc.

Selected Financial Data

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



CAPITAL RATIOS: 9/30/2020 6/30/2020 12/31/2019 9/30/2019

Totalstockholders' $ 2,040,561 $ 2,030,776 $ 2,036,011 $ 2,031,284 equity

Common equity 11.36 % 11.50 % 11.76 % 11.89 % tier 1 ratio

Tier 1risk-based 12.09 % 12.24 % 12.51 % 12.65 % capital ratio

Totalrisk-based 13.19 % 13.23 % 13.23 % 13.38 % capital ratio

Tier 1 leverage 10.02 % 10.08 % 11.22 % 11.18 % ratio

Total risk $ 13,691,823 $ 13,388,522 $ 13,208,299 $ 12,951,936 weighted assets

Book value per $ 16.55 $ 16.48 $ 16.19 $ 16.03 common share

Tangible commonequity to 9.63 % 9.32 % 10.27 % 10.43 % tangible assets^1

Tangible commonequity per $ 12.70 $ 12.62 $ 12.40 $ 12.27 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 Nine Months Ended

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

Balance atbeginning of $ 161,771 $ 144,923 $ 94,144 $ 93,882 $ 94,066 $ 94,144 $ 92,557 period

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

Provision for 22,000 17,500 28,000 1,000 2,100 67,500 6,300 credit losses

Recoveries 2,428 252 2,536 939 780 5,216 2,797

Charge offs (6,350) (904) (5,957) (1,677) (2,602) (13,211) (6,432)

PCI allowance - - - - (462) - (1,340) adjustment

Balance at end $ 179,849 $ 161,771 $ 144,923 $ 94,144 $ 93,882 $ 179,849 $ 93,882 of period

Net charge offs/average loans 0.12 % 0.02 % 0.11 % 0.02 % 0.06 % 0.08 % 0.04 %receivable(annualized)



Three Months Ended Nine Months Ended

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

Real estate $ 5,154 $ 148 $ 2,230 $ 203 $ 951 $ 7,532 $ (504) loans

Commercial (1,451) 240 676 245 596 (535) 3,245 loans

Consumer loans 219 264 515 290 275 998 894

Total net $ 3,922 $ 652 $ 3,421 $ 738 $ 1,822 $ 7,995 $ 3,635 charge offs

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

NONPERFORMING ASSETS:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Loans on nonaccrual status 3

$

69,205

$

82,137

$

72,639

$

54,785

$

42,235

Delinquent loans 90 days or more on accrual status

1,537

430

387

7,547

398

Accruing troubled debt restructured loans

35,429

44,026

43,789

35,709

34,717

Total nonperforming loans

106,171

126,593

116,815

98,041

77,350

Other real estate owned

18,410

20,983

23,039

24,091

19,374

Total nonperforming assets

$

124,581

$

147,576

$

139,854

$

122,132

$

96,724

Nonperforming assets/total assets

0.74

%

0.86

%

0.87

%

0.78

%

0.63

%

Nonperforming assets/loans receivable & OREO

0.95

%

1.14

%

1.11

%

0.99

%

0.80

%

Nonperforming assets/total capital

6.11

%

7.27

%

6.93

%

6.00

%

4.76

%

Nonperforming loans/loans receivable

0.81

%

0.98

%

0.93

%

0.80

%

0.64

%

Nonaccrual loans/loans receivable

0.53

%

0.64

%

0.58

%

0.45

%

0.35

%

Allowance for credit losses/loans receivable

1.37

%

1.26

%

1.15

%

0.77

%

0.78

%

Allowance for credit losses/nonaccrual loans

259.88

%

196.95

%

199.51

%

171.84

%

222.28

%

Allowance for credit losses/nonperforming loans

169.40

%

127.79

%

124.06

%

96.03

%

121.37

%

Allowance for credit losses/nonperforming assets

144.36

%

109.62

%

103.62

%

77.08

%

97.06

%

3 Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $26.2 million, $30.3 million, $28.8 million, $28.1 million, and $37.3 million at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.

NONACCRUAL LOANS BY TYPE:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Real estate loans

$

51,739

$

64,060

$

56,787

$

40,935

$

27,920

Commercial loans

13,022

12,079

12,747

10,893

11,242

Consumer loans

4,444

5,998

3,105

2,957

3,073

Total nonaccrual loans

$

69,205

$

82,137

$

72,639

$

54,785

$

42,235

BREAKDOWN OF ACCRUING TROUBLED DEBT RESTRUCTURED LOANS:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Retail buildings

$

5,451

$

5,526

$

5,014

$

4,215

$

3,221

Gas stations/car washes

224

1,789

1,675

-

233

Mixed-use facilities

4,323

3,583

3,157

3,175

3,200

Warehouses

7,320

13,433

13,381

10,381

10,449

Other 5

18,111

19,695

20,562

17,938

17,614

Total

$

35,429

$

44,026

$

43,789

$

35,709

$

34,717

5 Includes commercial business, consumer, and other loans

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

30 - 59 days

$

5,962

$

18,857

$

37,866

$

14,433

$

25,281

60 - 89 days

58,065

29,975

2,605

4,712

4,535

Total

$

64,027

$

48,832

$

40,471

$

19,145

$

29,816

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

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Real estate loans

$

60,510

$

27,245

$

23,753

$

7,689

$

20,572

Commercial loans

624

5,987

4,583

692

2,282

Consumer loans

2,893

15,600

12,135

10,764

6,962

Total

$

64,027

$

48,832

$

40,471

$

19,145

$

29,816

CRITICIZED LOANS:

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Special mention

$

153,388

$

127,149

$

122,279

$

141,452

$

139,848

Substandard

311,902

299,357

278,771

259,278

268,605

Doubtful/Loss

6,640

11

12

13

17

Total criticized loans

$

471,930

$

426,517

$

401,062

$

400,743

$

408,470

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)



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

Loans onnonaccrual $ 69,205 $ 82,137 $ 72,639 $ 54,785 $ 42,235 status ^3

Delinquentloans 90 daysor more on 1,537 430 387 7,547 398 accrualstatus

Accruingtroubled debt 35,429 44,026 43,789 35,709 34,717 restructuredloans

Totalnonperforming 106,171 126,593 116,815 98,041 77,350 loans

Other real 18,410 20,983 23,039 24,091 19,374 estate owned

Totalnonperforming $ 124,581 $ 147,576 $ 139,854 $ 122,132 $ 96,724 assets

Nonperformingassets/total 0.74 % 0.86 % 0.87 % 0.78 % 0.63 %assets

Nonperformingassets/loans 0.95 % 1.14 % 1.11 % 0.99 % 0.80 %receivable &OREO

Nonperformingassets/total 6.11 % 7.27 % 6.93 % 6.00 % 4.76 %capital

Nonperformingloans/loans 0.81 % 0.98 % 0.93 % 0.80 % 0.64 %receivable

Nonaccrualloans/loans 0.53 % 0.64 % 0.58 % 0.45 % 0.35 %receivable

Allowance forcredit losses 1.37 % 1.26 % 1.15 % 0.77 % 0.78 %/loansreceivable

Allowance forcredit losses 259.88 % 196.95 % 199.51 % 171.84 % 222.28 %/nonaccrualloans

Allowance forcredit losses/ 169.40 % 127.79 % 124.06 % 96.03 % 121.37 %nonperformingloans

Allowance forcredit losses/ 144.36 % 109.62 % 103.62 % 77.08 % 97.06 %nonperformingassets



^3 Excludes delinquent SBA loans that are guaranteed and currently inliquidation totaling $26.2 million, $30.3 million, $28.8 million, $28.1million, and $37.3 million at September 30, 2020, June 30, 2020, March 31,2020, December 31, 2019, and September 30, 2019, respectively.





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

Real estate $ 51,739 $ 64,060 $ 56,787 $ 40,935 $ 27,920 loans

Commercial 13,022 12,079 12,747 10,893 11,242 loans

Consumer 4,444 5,998 3,105 2,957 3,073 loans

Totalnonaccrual $ 69,205 $ 82,137 $ 72,639 $ 54,785 $ 42,235 loans



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

Retail $ 5,451 $ 5,526 $ 5,014 $ 4,215 $ 3,221 buildings

Gas stations/ 224 1,789 1,675 - 233 car washes

Mixed-use 4,323 3,583 3,157 3,175 3,200 facilities

Warehouses 7,320 13,433 13,381 10,381 10,449

Other ^5 18,111 19,695 20,562 17,938 17,614

Total $ 35,429 $ 44,026 $ 43,789 $ 35,709 $ 34,717



^5 Includes commercial business, consumer, and other loans



Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)





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

30 - 59 days $ 5,962 $ 18,857 $ 37,866 $ 14,433 $ 25,281

60 - 89 days 58,065 29,975 2,605 4,712 4,535

Total $ 64,027 $ 48,832 $ 40,471 $ 19,145 $ 29,816



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

Real estate $ 60,510 $ 27,245 $ 23,753 $ 7,689 $ 20,572 loans

Commercial 624 5,987 4,583 692 2,282 loans

Consumer 2,893 15,600 12,135 10,764 6,962 loans

Total $ 64,027 $ 48,832 $ 40,471 $ 19,145 $ 29,816





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

Special $ 153,388 $ 127,149 $ 122,279 $ 141,452 $ 139,848 mention

Substandard 311,902 299,357 278,771 259,278 268,605

Doubtful/Loss 6,640 11 12 13 17

Totalcriticized $ 471,930 $ 426,517 $ 401,062 $ 400,743 $ 408,470 loans

Hope Bancorp, Inc.

Selected Financial Data

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

Reconciliation of GAAP financial measures to non-GAAP financial measures

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

Three Months Ended

Nine Months Ended

9/30/2020

6/30/2020

9/30/2019

9/30/2020

9/30/2019

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

Average stockholders' equity

$

2,039,555

$

2,016,947

$

2,010,458

$

2,028,074

$

1,964,146

Less: Goodwill and core deposit intangible assets, net

(475,010)

(475,534)

(477,159)

(475,530)

(477,730)

Average tangible common equity

$

1,564,545

$

1,541,413

$

1,533,299

$

1,552,544

$

1,486,416

Net income

$

30,490

$

26,753

$

42,592

$

83,196

$

128,031

Return on average tangible common equity (annualized)

7.80

%

6.94

%

11.11

%

7.14

%

11.48

%

Three Months Ended

9/30/2020

6/30/2020

12/31/2019

9/30/2019

TANGIBLE COMMON EQUITY

Total stockholders' equity

$

2,040,561

$

2,030,776

$

2,036,011

$

2,031,284

Less: Goodwill and core deposit intangible assets, net

(474,689)

(475,220)

(476,283)

(476,840)

Tangible common equity

$

1,565,872

$

1,555,556

$

1,559,728

$

1,554,444

Total assets

$

16,733,767

$

17,169,062

$

15,667,440

$

15,379,878

Less: Goodwill and core deposit intangible assets, net

(474,689)

(475,220)

(476,283)

(476,840)

Tangible assets

$

16,259,078

$

16,693,842

$

15,191,157

$

14,903,038

Common shares outstanding

123,260,760

123,239,276

125,756,543

126,697,925

Tangible common equity to tangible assets

9.63

%

9.32

%

10.27

%

10.43

%

Tangible common equity per share

$

12.70

$

12.62

$

12.40

$

12.27

Hope Bancorp, Inc.

Selected Financial Data

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



Reconciliation of GAAP financial measures to non-GAAP financial measures



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





Three Months Ended Nine Months Ended

9/30/2020 6/30/2020 9/30/2019 9/30/2020 9/30/2019

RETURN ONAVERAGE TANGIBLE COMMONEQUITY

Averagestockholders' $ 2,039,555 $ 2,016,947 $ 2,010,458 $ 2,028,074 $ 1,964,146 equity

Less: Goodwilland coredeposit (475,010) (475,534) (477,159) (475,530) (477,730) intangibleassets, net

Averagetangible common $ 1,564,545 $ 1,541,413 $ 1,533,299 $ 1,552,544 $ 1,486,416 equity



Net income $ 30,490 $ 26,753 $ 42,592 $ 83,196 $ 128,031

Return onaveragetangible common 7.80 % 6.94 % 11.11 % 7.14 % 11.48 %equity(annualized)



Three Months Ended

9/30/2020 6/30/2020 12/31/2019 9/30/2019

TANGIBLE COMMON EQUITY

Totalstockholders' $ 2,040,561 $ 2,030,776 $ 2,036,011 $ 2,031,284 equity

Less: Goodwilland coredeposit (474,689) (475,220) (476,283) (476,840) intangibleassets, net

Tangible common $ 1,565,872 $ 1,555,556 $ 1,559,728 $ 1,554,444 equity



Total assets $ 16,733,767 $ 17,169,062 $ 15,667,440 $ 15,379,878

Less: Goodwilland coredeposit (474,689) (475,220) (476,283) (476,840) intangibleassets, net

Tangible assets $ 16,259,078 $ 16,693,842 $ 15,191,157 $ 14,903,038



Common shares 123,260,760 123,239,276 125,756,543 126,697,925 outstanding



Tangible commonequity to 9.63 % 9.32 % 10.27 % 10.43 % tangible assets

Tangible commonequity per $ 12.70 $ 12.62 $ 12.40 $ 12.27 share

Hope Bancorp, Inc.

Selected Financial Data

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

Three Months Ended

Nine Months Ended

9/30/2020

6/30/2020

9/30/2019

9/30/2020

9/30/2019

PRE-TAX PRE-PROVISION INCOME

Net income

$

30,490

$

26,753

$

42,592

$

83,196

$

128,031

Add back - tax provision

9,254

9,771

14,566

25,487

43,261

Add back - provision for credit losses

22,000

17,500

2,100

67,500

6,300

Pre-tax pre-provision income

$

61,744

$

54,024

$

59,258

$

176,183

$

177,592

Three Months Ended

Nine Months Ended

9/30/2020

6/30/2020

9/30/2019

9/30/2020

9/30/2019

PRE-PROVISION NET REVENUE

Net interest income before provision for credit losses

$

117,637

$

109,814

$

116,258

$

346,742

$

353,087

Noninterest income

17,513

11,240

12,995

42,017

36,704

Pre-Provision Net Revenue

$

135,150

$

121,054

$

129,253

$

388,759

$

389,791

View source version on businesswire.com: https://www.businesswire.com/news/home/20201020006223/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