Hope Bancorp Reports $24.2M Net Income in Q3

By Tamara Parker • Monday, October 28 15:18 • Permanent Link

Hope Bancorp, Inc. (NASDAQ: HOPE) has reported its unaudited financial results for the third quarter and nine months ended September 30, 2024. The company's net income for the third quarter of 2024 was $24.2 million, or $0.20 per diluted common share, compared to net income of $25.3 million, or $0.21 per diluted common share in the second quarter of 2024. Excluding notable items, net income for the third quarter of 2024 was $25.2 million, or $0.21 per diluted common share.

The company's loans receivable grew by 2% on an annualized basis in the third quarter, marking a turnaround in its loan growth trend. Additionally, more than two-thirds of the net growth in noninterest-bearing demand deposits in the third quarter came from small business accounts.

Hope Bancorp's total capital ratio was a strong 14.8% as of September 30, 2024, and its tangible equity ratio was a robust 10.1%. The company's balance sheet management has resulted in high levels of capital, ample liquidity, and a lower loan-to-deposit ratio, positioning it well to increase its market share and generate profitable growth.

In terms of operating results, the net interest margin for the third quarter of 2024 was 2.55%, down seven basis points from the second quarter of 2024. Noninterest income for the third quarter increased to $11.8 million, up 7% from the second quarter of 2024.

The company's total deposits amounted to $14.73 billion at September 30, 2024, up $18.0 million from June 30, 2024. The gross loan-to-deposit ratio was 92.6% at September 30, 2024.

Hope Bancorp's nonperforming assets were $103.8 million, or 0.60% of total assets, at September 30, 2024, compared with $67.3 million, or 0.39% of total assets, at June 30, 2024. The company recorded net charge-offs of $5.7 million in the third quarter of 2024, equivalent to 0.17%, annualized, of average loans.

The company's capital ratios are strong, with its common equity tier 1 capital ratio at 13.06% at September 30, 2024, up from 12.70% at June 30, 2024. Total stockholders' equity was $2.17 billion at September 30, 2024, compared with $2.11 billion at June 30, 2024. Tangible common equity per share was $14.10 at September 30, 2024, and the tangible common equity ratio was 10.08%.

These financial results indicate the company's focus on growth and stability, especially in its loan and deposit portfolios, as well as its efforts to maintain strong capital and equity positions. The market has reacted to these announcements by moving the company's shares 0.7% to a price of $12.55. Check out the company's full 8-K submission here.

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