NASDAQ$HOPE

Hope Bancorp Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Hope Bancorp reported solid results driven by strategic initiatives.

Hope Bancorp reported a net income of $43.0 million, or $0.34 per diluted common share, for the fourth quarter of 2019. The company saw a favorable shift in its deposit base to lower costing core deposits and originated a record level of $848 million in new loans. Noninterest expenses remained well contained at 1.85% of total assets.

  • Record new loan originations of $847.6 million led to more than a 1% increase in loans receivable quarter-over-quarter, or 6% annualized.
  • Deposit initiatives contributed to a 13 basis point reduction quarter-over-quarter in total deposit costs, the first quarter-over-quarter decrease since Q4 2016.
  • Total deposits increased 2% quarter-over-quarter, reflecting a continuation of a favorable mix-shift to core deposits.
  • Total noninterest expenses were well contained and remained at 1.85% of average assets.

Headline financials

Total Revenue

$126M

Previous: $134M-5.3%
EPS (adj)

$0.34

Previous: $0.35-2.9%
Return on Average Assets

1.1%

No prior period
Return on Average Equity

8.5%

No prior period
Return on Average Tangible Common Equity

11.0%

No prior period
Net Interest Margin

3.2%

No prior period
Efficiency Ratio

55.7%

No prior period
Nonperforming Assets/Total Assets

0.8%

No prior period
Capital Expenditures

$1.43M

Previous: $1.33M+7.4%
Free Cash Flow

$33.6M

Previous: $38.2M-12.2%
Net Income

$43M

Previous: $44.4M-3.2%
Operating Income

$55.1M

No prior period
Cash & Equivalents

$699M

Previous: $460M+52.0%
Total Assets

$15.7B

Previous: $15.3B+2.4%
Stock-Based Comp

$1.39M

Previous: $735K+88.4%

Revenue & EPS history

Hope Bancorp · Revenue · Quarterly

$126M

Q4 2019-5.3%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Hope Bancorp believes it is positioned to begin seeing some margin expansion by the second half of 2020, which will ultimately improve its ability to further enhance returns and profitability, assuming no further changes in the Fed Funds rate this year.

Tailwinds

  • Progress in controlling deposit costs
  • Growing contribution of higher-rate SBA loans in the portfolio
  • Potential margin expansion by the second half of the year
  • Improved ability to enhance returns
  • Improved ability to enhance profitability

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 Q4 2019

Historical avgQ4 2019

+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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