NASDAQ$HOPE

Hope Bancorp Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Hope Bancorp's financial performance improved with expanded net interest margin, decreased operating expenses, and improved return on assets.

Hope Bancorp reported a net income of $25.3 million, or $0.21 per diluted common share, for the second quarter of 2024. The company's net interest margin expanded, operating expenses decreased, and return on assets improved compared to the previous quarter. Total deposits remained stable, and nonperforming assets decreased significantly.

  • Net income totaled $25.3 million, or $0.21 per diluted common share.
  • Net interest margin expanded to 2.62%, up seven basis points from the previous quarter.
  • Noninterest expense decreased 5% to $81.0 million from the previous quarter.
  • Nonperforming assets decreased 37% to $67.3 million from the previous quarter.

Headline financials

Total Revenue

$117M

Previous: $148M-20.8%
EPS

$0.21

Previous: $0.32-34.4%
Net Interest Margin

2.6%

Previous: 2.7%-3.0%
Nonperforming Assets/Total Assets

0.4%

Previous: 0.4%+2.6%
Common Equity Tier 1 Capital Ratio

12.7%

No prior period
Tier 1 Capital Ratio

13.4%

No prior period
Total Capital Ratio

14.4%

Previous: 12.6%+14.0%
Leverage Ratio

11.6%

No prior period
TCE Ratio

9.7%

No prior period
Capital Expenditures

-$4.65M

Previous: -$7.72M+39.8%
Free Cash Flow

$20.6M

Previous: $30.3M-31.9%
Net Income

$25.3M

Previous: $38M-33.5%
Operating Income

-$30.8M

Previous: -$16.7M-84.5%
Gross Profit

$116M

Previous: $139M-16.8%
Cash & Equivalents

$654M

Previous: $2.3B-71.6%
Total Assets

$17.4B

Previous: $20.4B-14.7%
Stock-Based Comp

$1.74M

Previous: $3.38M-48.7%

Revenue & EPS history

Hope Bancorp · Revenue · Quarterly

$117M

Q2 2024-20.8%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

Some statements in this news release may constitute forward-looking statements. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements.

Tailwinds

  • Territorial Bancorp’s low-cost core deposit base
  • Strengthening of profitability
  • Ease of integration
  • Diversification of franchise
  • The Company expects the effective tax rate to be approximately 26% for the full year 2024.

Headwinds

  • 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
  • Deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees and customers, may be greater than expected
  • Required governmental approvals of the merger may not be obtained on its proposed terms and schedule, or without regulatory constraints that may limit growth
  • 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 Q2 2024

Historical avgQ2 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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