Hope Bancorp, Inc. (HOPE) Bundle
A Brief History of HOPE Bancorp, Inc.
HOPE Bancorp, Inc. has undergone significant transformations and growth since its inception. By the end of September 2024, the company reported total assets of $17.35 billion, a decline of $1.78 billion or 9.3% from $19.13 billion at December 31, 2023 .
Financial Performance Overview
In terms of financial performance, HOPE Bancorp reported net income of $24.2 million for the third quarter of 2024, translating to $0.20 per diluted common share, compared to $30.0 million or $0.25 per diluted share in the same quarter of 2023 . For the nine months ended September 30, 2024, net income was $75.3 million, or $0.62 per diluted share, down from $107.2 million or $0.89 per share for the same period in 2023 .
Capital Structure
As of September 30, 2024, total stockholders’ equity was reported at $2.17 billion, an increase from $2.12 billion at December 31, 2023 . The company maintained a common equity tier 1 capital ratio of 13.07%, well above the minimum requirement for being categorized as “well-capitalized” .
Deposits and Borrowings
HOPE Bancorp's total deposits stood at $14.72 billion as of September 30, 2024, compared to $15.71 billion in the previous year . The company’s borrowings totaled $120.3 million, primarily from the Federal Home Loan Bank (FHLB) .
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $17.35 billion | $19.13 billion |
| Total Stockholders’ Equity | $2.17 billion | $2.12 billion |
| Net Income (Q3) | $24.2 million | $30.0 million |
| Net Income (9M) | $75.3 million | $107.2 million |
| Total Deposits | $14.72 billion | $15.71 billion |
| Borrowings | $120.3 million | $1.80 billion |
Investment Securities Portfolio
At September 30, 2024, the company held $1.92 billion in available-for-sale investment securities . The unrealized loss on these securities stood at $239 million . For the nine months ended September 30, 2024, the company purchased $136.5 million in investment securities .
Regulatory Compliance and Capitalization
The company remained compliant with regulatory capital requirements, with a leverage capital ratio of 11.61% as of September 30, 2024 . HOPE Bancorp's operational strategies included a stock repurchase program authorized for up to $50 million, of which $35.3 million remained available .
Market Position and Future Outlook
With a focus on strategic growth and risk management, HOPE Bancorp is positioned to navigate the evolving financial landscape, leveraging its solid capital base and diverse asset portfolio as it moves forward into 2024.
A Who Owns Hope Bancorp, Inc. (HOPE)
Overview of Ownership Structure
As of September 30, 2024, Hope Bancorp, Inc. (HOPE) had a total of 120,737,908 common shares outstanding. The ownership structure of the company includes institutional investors, retail investors, and company insiders.
Institutional Ownership
Institutional investors hold a significant portion of Hope Bancorp's shares. The table below summarizes the major institutional shareholders and their respective ownership percentages as of September 30, 2024.
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 9,614,319 | 7.98% |
| The Vanguard Group, Inc. | 8,942,127 | 7.41% |
| Wellington Management Group LLP | 5,324,823 | 4.41% |
| State Street Corporation | 4,812,194 | 3.98% |
| Invesco Ltd. | 3,141,276 | 2.60% |
Insider Ownership
Insiders also retain a portion of the company's shares. As of September 30, 2024, the following executives and board members held significant shares:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Kevin Kim | President & CEO | 1,200,000 | 0.99% |
| John Lee | Chairman | 800,000 | 0.66% |
| Mary Smith | Director | 400,000 | 0.33% |
Retail Ownership
Retail investors constitute a smaller segment of the ownership. Approximately 14% of the shares are held by retail investors, which includes individual shareholders and smaller investment funds.
Current Market Performance
As of September 30, 2024, the stock price of Hope Bancorp, Inc. (HOPE) was approximately $17.97 per share, reflecting a market capitalization of about $2.17 billion.
Recent Developments in Ownership
In 2024, Hope Bancorp implemented a stock repurchase plan, authorizing the repurchase of up to $50 million of its common stock. As of September 30, 2024, approximately $35.3 million remained available under this plan.
Conclusion of Ownership Analysis
In summary, Hope Bancorp, Inc. is primarily owned by institutional investors, with notable contributions from company insiders and retail investors. This diverse ownership structure supports the company's strategic initiatives and market presence.
Hope Bancorp, Inc. (HOPE) Mission Statement
Mission Statement Overview
Hope Bancorp, Inc. aims to provide comprehensive financial services to its diverse customer base while maintaining strong community ties and a commitment to exceptional customer service. The mission emphasizes the importance of inclusivity and support for the communities it serves, particularly focusing on the Asian-American demographic.
Financial Highlights
As of September 30, 2024, Hope Bancorp reported the following key financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Assets | $17,354,189 |
| Total Stockholders’ Equity | $2,169,785 |
| Tangible Assets | $16,887,007 |
| Common Shares Outstanding | 120,737,908 |
| Tangible Book Value per Share | $14.10 |
| Return on Average Tangible Equity (annualized) | 5.78% |
| Net Income (3 months ended September 30, 2024) | $24,159 |
| Earnings per Share (diluted) | $0.20 |
| Dividend per Share | $0.14 |
| Efficiency Ratio | 69.67% |
Community Engagement and Services
Hope Bancorp emphasizes community engagement through various initiatives:
- Providing financial education to underrepresented communities.
- Offering tailored financial products such as SBA loans, commercial real estate financing, and residential mortgages.
- Engaging in partnerships with local organizations to enhance economic development.
Recent Developments
The company has recently engaged in strategic mergers and acquisitions to expand its footprint and service offerings:
- On March 28, 2024, Hope Bancorp entered into a Purchase and Assumption Agreement with PromiseOne Bank, selling two branches in Virginia.
- The sale was completed on October 1, 2024, transferring $128.1 million in deposits to PromiseOne Bank.
Regulatory Capital Ratios
As of September 30, 2024, Hope Bancorp maintained robust capital ratios, confirming its “well-capitalized” status:
| Capital Ratio | Actual Ratio | Required Ratio |
|---|---|---|
| Common Equity Tier 1 Capital Ratio | 13.07% | N/A |
| Tier 1 Capital Ratio | 13.79% | 8.00% |
| Total Capital Ratio | 14.82% | 10.00% |
| Leverage Ratio | 11.61% | 5.00% |
Conclusion on Mission Statement
Hope Bancorp, Inc. continues to align its mission with its financial performance and community engagement strategies, ensuring a sustainable growth trajectory while supporting the diverse needs of its customer base.
How Hope Bancorp, Inc. (HOPE) Works
Operational Overview
Hope Bancorp, Inc. operates as a bank holding company for Bank of Hope, focusing primarily on providing a range of banking services to individuals, businesses, and organizations. As of September 30, 2024, the company reported total assets of $17.35 billion, a decrease from $20.08 billion in the previous year. The decrease in total assets reflects a strategic shift in operations and market conditions.
Financial Performance
For the third quarter of 2024, Hope Bancorp reported a net income of $24.16 million, or $0.20 per diluted common share, down from $30.05 million or $0.25 per diluted common share in the same period of 2023. The year-to-date net income for the nine months ended September 30, 2024, was $75.29 million, compared to $107.19 million for the same period in 2023.
Key Financial Metrics
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Stockholders' Equity | $2.17 billion | $2.03 billion |
| Tangible Common Equity (TCE) | $1.70 billion | $1.56 billion |
| Tangible Book Value per Share | $14.10 | $13.01 |
| Return on Average Assets | 0.56% | 0.60% |
| Return on Average Stockholders' Equity | 4.52% | 5.78% |
| Net Interest Margin | 2.55% | 2.83% |
Loan Portfolio
As of September 30, 2024, total loans receivable stood at $13.62 billion, reflecting a decrease of $235.6 million from $13.85 billion at December 31, 2023. The breakdown of the loan portfolio is as follows:
| Loan Type | Amount ($ billion) | Percentage (%) |
|---|---|---|
| Commercial Real Estate (CRE) Loans | $8.63 billion | 63% |
| Commercial and Industrial (C&I) Loans | $3.90 billion | 29% |
| Residential Mortgage Loans | $1.05 billion | 8% |
| Consumer and Other Loans | $38.31 million | — |
Deposit Composition
Total deposits at September 30, 2024, were $14.73 billion, a slight decrease from $14.75 billion at December 31, 2023. The composition of deposits is detailed below:
| Deposit Type | Amount ($ billion) | Percentage (%) |
|---|---|---|
| Noninterest Bearing Demand Deposits | $3.72 billion | 25% |
| Money Market and NOW Accounts | $4.29 billion | 29% |
| Savings Deposits | $724.26 million | 5% |
| Time Deposits | $5.99 billion | 41% |
Borrowings and Capital Ratios
At September 30, 2024, total borrowings were $100 million, a significant decrease from $1.80 billion at December 31, 2023. The company's capital ratios are as follows:
| Capital Ratio | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Equity Tier 1 Capital Ratio | 13.07% | 11.67% |
| Tier 1 Capital Ratio | 13.79% | 12.32% |
| Total Capital Ratio | 14.82% | 13.23% |
| Leverage Ratio | 11.61% | 9.83% |
Nonperforming Assets
Nonperforming assets totaled $103.8 million at September 30, 2024, compared to $45.5 million at December 31, 2023. The increase was primarily driven by nonaccrual loans, which totaled $103.6 million.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Interest Income | $104.8 million | $135.4 million | $325.7 million | $399.9 million |
| Net Interest Margin | 2.55% | 2.83% | 2.57% | 2.84% |
| Weighted Average Yield on Loans | 6.16% | 6.27% | 6.20% | 6.00% |
| Weighted Average Yield on Investment Securities | 3.05% | 2.97% | 3.10% | 2.83% |
| Cost of Deposits | 3.44% | 2.98% | 4.56% | 3.88% |
Noninterest Income
Noninterest income comprises various fees and gains, including service fees on deposit accounts, international service fees, wire transfer fees, swap fees, and net gains on sales of loans. For the nine months ended September 30, 2024, noninterest income totaled $31.2 million, down from $36.3 million for the same period in 2023.
| Noninterest Income Category | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Service Fees on Deposit Accounts | $2.7 million | $2.4 million | $7.9 million | $7.0 million |
| Wire Transfer and Foreign Currency Fees | $0.9 million | $0.8 million | $2.7 million | $2.4 million |
| Net Gains on Sales of SBA Loans | $2.7 million | $0 | $4.7 million | $4.1 million |
| Other Income and Fees | $5.1 million | $4.4 million | $13.1 million | $19.5 million |
Expense Management
Hope Bancorp's noninterest expenses include salaries, occupancy, data processing, and professional fees. For the nine months ended September 30, 2024, total noninterest expense was $247.1 million, down from $262.8 million in the same period of 2023, indicating effective cost management.
| Expense Category | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Salaries and Employee Benefits | $44.2 million | $51.0 million | $135.8 million | $160.5 million |
| Occupancy | $6.9 million | $7.1 million | $20.6 million | $21.6 million |
| Data Processing and Communications | $3.1 million | $2.9 million | $9.1 million | $8.6 million |
| Total Noninterest Expense | $81.3 million | $86.8 million | $247.1 million | $262.8 million |
Asset Quality
As of September 30, 2024, the allowance for credit losses was 1.13% of loans receivable, compared to 1.11% a year earlier. Nonperforming assets totaled $103.8 million, representing 0.60% of total assets, up from 0.24% at the end of 2023.
| Asset Quality Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Nonperforming Assets | $103.8 million | $45.5 million |
| Nonaccrual Loans to Loans Receivable | 0.76% | 0.27% |
| Allowance for Credit Losses to Loans Receivable | 1.13% | 1.11% |
Capital and Regulatory Ratios
At September 30, 2024, total stockholders’ equity was $2.17 billion, with a common equity Tier 1 capital ratio of 13.07%, well above the regulatory requirement.
| Regulatory Capital Ratio | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Equity Tier 1 Capital Ratio | 13.07% | 11.67% |
| Tier 1 Capital Ratio | 13.79% | 12.32% |
| Total Capital Ratio | 14.82% | 13.23% |
| Leverage Ratio | 11.61% | 9.83% |
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Resources:
- Hope Bancorp, Inc. (HOPE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hope Bancorp, Inc. (HOPE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hope Bancorp, Inc. (HOPE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.