NASDAQ$HOPE

Hope Bancorp Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Hope Bancorp reported improved operational performance and profitability and took strategic actions to de-risk the loan portfolio.

Hope Bancorp reported a net income of $55.5 million, an increase of 3% compared to the previous quarter and 82% compared to the year-ago quarter. The company's business development was strong, with record new loan production of $1.01 billion and record high SBA origination volumes of $115.0 million. Deposits reached a record high of $15.1 billion, driven by growth in noninterest bearing demand deposits.

  • Loan originations increased 13% quarter-over-quarter to a record high of $1.01 billion.
  • Noninterest bearing demand deposits increased 7% quarter-over-quarter, contributing to record high deposits of $15.06 billion.
  • Net income increased 3% quarter-over-quarter, totaling $55.5 million, or $0.45 per diluted common share.
  • Nonaccrual loans decreased 51% quarter-over-quarter, and total criticized loans decreased 19%.

Headline financials

Total Revenue

$141M

Previous: $135M+4.3%
EPS (adj)

$0.45

Previous: $0.25+80.0%
Net Interest Margin

3.1%

Previous: 2.9%+5.5%
Efficiency Ratio

53.6%

Previous: 54.3%-1.3%
Capital Expenditures

-$4.75M

Previous: -$4.05M-17.4%
Free Cash Flow

$50.7M

Previous: $26.4M+91.9%
Net Income

$55.5M

Previous: $30.5M+82.0%
Operating Income

$97.2M

Previous: $67.9M+43.3%
Gross Profit

$131M

Previous: $113M+15.7%
Cash & Equivalents

$640M

Previous: $659M-3.0%
Total Assets

$17.8B

Previous: $16.7B+6.4%
Stock-Based Comp

$2.19M

Previous: $2.18M+0.8%

Revenue & EPS history

Hope Bancorp · Revenue · Quarterly

$141M

Q3 2021+4.3%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The company is well positioned to drive stronger performance in the years ahead, due to improvements in asset quality, robust loan production and positive core deposit growth.

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 Q3 2021

Historical avgQ3 2021

+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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