Hope Bancorp, Inc. has reported its unaudited financial results for the second quarter and six months ended June 30, 2024.
In the second quarter of 2024, the company's net income totaled $25.3 million, or $0.21 per diluted common share, compared with net income of $25.9 million, or $0.21 per diluted common share, in the first quarter of 2024. Excluding notable items, net income for the second quarter was $26.6 million, or $0.22 per diluted common share.
The net interest margin for the second quarter expanded to 2.62%, up seven basis points from 2.55% in the first quarter of 2024. Noninterest income for the second quarter increased to $11.1 million, up 34% from $8.3 million in the first quarter, primarily reflecting $2.0 million of net gains on the sale of SBA loans.
Noninterest expense for the second quarter decreased 5% to $81.0 million from $84.8 million in the first quarter. The company's tax rate for the first half of 2024 was 27.4%, compared with 26.0% for the first half of 2023.
Cash and cash equivalents totaled $654.0 million at June 30, 2024, compared with $1.19 billion at March 31, 2024, and $2.30 billion at June 30, 2023. Investment securities totaled $2.17 billion at June 30, 2024.
Gross loans of $13.64 billion at June 30, 2024, decreased modestly quarter-over-quarter. Total deposits were essentially stable at $14.71 billion at June 30, 2024, compared with $14.75 billion at March 31, 2024.
Nonperforming assets decreased 37% to $67.3 million at June 30, 2024, from $106.8 million at March 31, 2024. The company recorded net charge offs of $4.4 million in the second quarter of 2024, equivalent to 0.13% annualized of average loans.
The allowance for credit losses totaled $156.0 million at June 30, 2024, compared with $158.8 million at March 31, 2024. The company's capital ratios are strong and all regulatory risk-based capital ratios expanded quarter-over-quarter and year-over-year.
At June 30, 2024, total stockholders’ equity was $2.11 billion, or $17.49 per common share, essentially stable quarter-over-quarter. Tangible common equity per share was $13.61 at June 30, 2024.
The company expects the effective tax rate for the full year 2024 to be approximately 26%. As a result of these announcements, the company's shares have moved -3.0% on the market, and are now trading at a price of $13.12. For the full picture, make sure to review Hope Bancorp's 8-K report.
