NASDAQ$HOPE

Hope Bancorp Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported a decrease in net income and earnings per share compared to the previous quarter, while also announcing a merger with Territorial Bancorp.

Hope Bancorp reported a net income of $25.9 million, or $0.21 per diluted common share, for the first quarter of 2024. The company also announced a definitive merger agreement with Territorial Bancorp, expected to close by year-end 2024.

  • Net income totaled $25.9 million, or $0.21 per diluted common share.
  • All business lines exceeded deposit goals, stabilizing balances.
  • Noninterest expenses, excluding notable items, decreased 2% from the previous quarter.
  • Tangible common equity ratio rose to 9.33%, and total capital ratio rose to 14.19%.

Headline financials

Total Revenue

$123M

Previous: $145M-14.9%
EPS

$0.21

Previous: $0.33-36.4%
Net Interest Margin

2.5%

Previous: 3.0%-15.6%
Efficiency Ratio

68.8%

Previous: 62.4%+10.3%
Nonperforming Assets/Total Assets

0.6%

No prior period
Common Equity Tier 1 Capital Ratio

12.5%

No prior period
Tier 1 Capital Ratio

13.2%

No prior period
Total Capital Ratio

14.2%

No prior period
Leverage Ratio

10.4%

No prior period
Capital Expenditures

-$2.11M

Previous: -$2.99M+29.3%
Free Cash Flow

$23.8M

Previous: $36.1M-34.3%
Net Income

$25.9M

Previous: $39.1M-33.9%
Operating Income

-$44.1M

Previous: $19.6M-324.6%
Gross Profit

$121M

Previous: $143M-15.7%
Cash & Equivalents

$1.19B

Previous: $2.21B-46.4%
Total Assets

$18.1B

Previous: $20.6B-12.1%
Stock-Based Comp

$2.69M

Previous: $2.35M+14.4%

Revenue & EPS history

Hope Bancorp · Revenue · Quarterly

$123M

Q1 2024-14.9%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

Hope Bancorp expects the merger with Territorial Bancorp to be accretive to earnings and to strengthen profitability while diversifying the franchise. For the full year 2024, the Company expects the effective tax rate to be approximately 26%.

Tailwinds

  • Merger with Territorial Bancorp expected to be accretive to earnings.
  • Merger expected to strengthen profitability.
  • Merger expected to diversify franchise.
  • Territorial has a stable, low-cost core deposit base.
  • Territorial has excellent asset quality.

Headwinds

  • Closing of the proposed transaction is subject to regulatory approvals.
  • Closing of the proposed transaction is subject to the approval of Territorial Bancorp shareholders.
  • Difficulties and delays in integrating Hope Bancorp and Territorial Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction
  • Higher than anticipated transaction costs
  • Possible further deterioration in economic conditions in Hope Bancorp’s areas of operation or elsewhere

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.1%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+1.2%

Avg return

30 days after

50%

33 / 66 earnings

Positive

+13.9%

Q1 2020

Best reaction

-8.6%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.1%-0.5%-1.0%
Q4 2025+3.2%+1.7%+0.0%
Q3 2025+1.0%-1.8%+0.3%
Q2 2025-0.6%-2.2%+3.1%
Q1 2025+1.8%+5.2%+5.4%
Q4 2024+1.1%-3.8%-10.8%
Q3 2024+0.0%-0.9%+10.4%
Q2 2024-2.6%-9.6%-6.1%
Q1 2024-8.6%-1.1%-7.7%
Q4 2023-7.3%-8.7%-8.2%
Q3 2023-4.6%-1.8%+12.7%
Q2 2023+4.1%+14.3%-0.9%
Q1 2023-6.0%-6.1%-13.0%
Q4 2022-4.2%-3.1%-0.8%
Q3 2022+1.1%+1.5%+3.0%
Q2 2022+3.7%+2.3%+10.6%
Q1 2022+3.5%-0.3%-10.3%
Q4 2021+11.9%+7.1%+7.0%
Q3 2021+0.0%-1.6%+5.1%
Q2 2021+6.0%+3.6%+7.8%
Q1 2021-2.1%-3.0%-0.6%
Q4 2020-7.2%-9.0%+8.7%
Q3 2020+3.3%+10.2%+22.2%
Q2 2020+0.0%+0.0%+1.8%
Q1 2020+13.9%+5.5%+10.9%
Q4 2019+0.9%-2.1%-2.5%
Q3 2019+2.6%-1.3%-1.1%
Q2 2019+2.4%+4.1%-3.9%
Q1 2019+0.5%-2.7%-0.1%
Q4 2018+3.8%+4.5%+5.3%
Q3 2018-4.3%-7.5%-5.6%
Q2 2018-3.5%-1.0%-0.6%
Q1 2018-5.5%-4.1%+0.6%
Q4 2017+2.6%+0.2%-2.7%
Q3 2017+2.1%+5.1%+0.5%
Q2 2017-3.3%-3.3%-9.4%
Q1 2017-5.7%-4.3%-6.5%
Q4 2016+5.6%-0.1%+1.7%
Q3 2016-4.8%-4.7%+12.7%
Q2 2016-1.5%-1.0%+11.5%
Q1 2016-0.5%
Q4 2015+2.2%
Q3 2015-0.2%
Q2 2015+0.8%
Q1 2015+0.0%
Q4 2014+0.6%
Q3 2014+1.9%
Q2 2014-0.2%
Q1 2014+3.4%
Q4 2013+2.4%
Q3 2013+0.6%
Q2 2013-0.1%
Q1 2013-0.5%
Q4 2012+3.8%
Q3 2012-0.8%
Q2 2012+0.1%
Q1 2011-2.0%
Q4 2011-2.0%
Q1 2012+2.0%
Q4 2009+5.2%
Q3 2011-4.6%
Q3 2010-4.6%
Q2 2011-5.2%
Q2 2010-5.2%
Q4 2010-5.2%
Q1 2010+10.2%

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