NASDAQ$HOPE

Hope Bancorp Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong financial results with record loan production and enhanced pre-provision net revenue.

Hope Bancorp reported net income of $52.1 million, or $0.43 per diluted common share, for the second quarter of 2022. The company achieved record loan production of $1.29 billion and a 15 basis point increase in net interest margin.

  • Loan originations totaled a record $1.29 billion, up 25% over the preceding first quarter.
  • Excluding PPP, loans receivable increased 16% quarter-over-quarter on an annualized basis.
  • Company recorded net recoveries of $930 thousand, reflecting the third consecutive quarter of total net recoveries.
  • Net interest margin expanded 15 basis points from the preceding first quarter, largely benefiting from higher loan yields.

Headline financials

Total Revenue

$154M

Previous: $138M+12.1%
EPS (adj)

$0.43

Previous: $0.43+0.0%
Return on Average Tangible Common Equity

13.5%

No prior period
Net Interest Margin

3.4%

Previous: 3.1%+8.0%
Efficiency Ratio

52.1%

Previous: 53.1%-1.9%
Capital Expenditures

-$4.53M

Previous: -$2.67M-69.3%
Free Cash Flow

$47.6M

Previous: $51.1M-6.9%
Net Income

$52.1M

Previous: $53.8M-3.1%
Operating Income

$113M

Previous: $95.1M+18.5%
Gross Profit

$151M

Previous: $131M+15.6%
Cash & Equivalents

$197M

Previous: $855M-77.0%
Total Assets

$18.1B

Previous: $17.5B+3.5%
Stock-Based Comp

$3.46M

Previous: $2.07M+67.1%

Revenue & EPS history

Hope Bancorp · Revenue · Quarterly

$154M

Q2 2022+12.1%vs Q2 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The company remains confident that investments made to strengthen and diversify the business model will continue to generate solid loan and deposit growth, despite the challenges of the current economy.

Tailwinds

  • Investments made to strengthen and diversify our business model
  • Solid loan and deposit growth
  • Lower-risk, more diversified loan portfolio
  • Enhanced credit administration framework
  • Well positioned to navigate the potential challenges of a recessionary environment

Headwinds

  • Challenges of the current economy
  • Potential challenges of a recessionary environment
  • Higher compensation expense environment
  • Volatile interest rates
  • Possible deterioration in economic conditions

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 Q2 2022

Historical avgQ2 2022

+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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