Hope Bancorp Reports Net Income Growth

By Bobby Samwell • Monday, January 27 15:21 • Permanent Link

Hope Bancorp, Inc. (NASDAQ: HOPE) has reported its financial results for the fourth quarter and full-year ending December 31, 2024. The company's net income for the fourth quarter was $24.3 million, slightly higher than the $24.2 million reported in the third quarter of 2024. For the full year, net income totaled $99.6 million, with a notable items-adjusted net income of $103.4 million.

In terms of revenue, there was a 1% increase from the third quarter to the fourth quarter of 2024, with total revenue reaching $118.0 million. Noninterest income saw significant growth, increasing to $15.9 million, up $4.0 million from the previous quarter.

The company's focus on strengthening its deposit base resulted in a reduction of brokered deposits to 7% of total deposits as of December 31, 2024, down from 10% in the previous year. Additionally, loans receivable grew 1% on an annualized basis since June 30, 2024, with a tangible common equity ratio over 10% as of December 31, 2024.

In terms of credit quality, nonperforming assets decreased by 13% to $90.8 million, or 0.53% of total assets, at the end of the fourth quarter. Criticized loans also decreased by 11% to $450.0 million, with the criticized loans to total loans ratio improving to 3.30%.

The company recorded net charge offs of $12.8 million in the fourth quarter of 2024, equivalent to 0.38% annualized of average loans, compared to $5.7 million, or 0.17% annualized, in the third quarter. The provision for credit losses in the fourth quarter was $10.0 million, higher than the $3.3 million recorded in the previous quarter.

In terms of the balance sheet, cash and due from banks totaled $458.2 million at December 31, 2024, compared with $680.9 million at September 30, 2024. Total deposits decreased by 3% to $14.33 billion at December 31, 2024, compared to $14.73 billion at September 30, 2024.

As a result of these announcements, the company's shares have moved 1.3% on the market, and are now trading at a price of $12.28. If you want to know more, read the company's complete 8-K report here.

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