NASDAQ$HOPE

Hope Bancorp Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported solid financial results despite a challenging operating environment, reflecting a lower-risk and diversified loan portfolio.

Hope Bancorp reported a net income of $51.7 million, or $0.43 per diluted common share, for the fourth quarter of 2022. Loan originations totaled $793.4 million, with commercial loans accounting for 54% of the new production. Total deposits increased 1.5% quarter-over-quarter.

  • Loan originations totaled $793.4 million, with commercial loans accounting for 54% of total originations for the quarter.
  • Loans receivable decreased 0.6% quarter-over-quarter, but increased 10.4% year-over-year.
  • Criticized loan balances decreased 8.0% quarter-over-quarter, or 47.7% year-over-year.
  • Total nonperforming assets declined 28.4% quarter-over-quarter and represented 0.36% of total assets at year-end.

Headline financials

Total Revenue

$163M

Previous: $146M+11.1%
EPS (adj)

$0.43

Previous: $0.43+0.0%
Return on Average Assets

1.1%

No prior period
Return on Average Equity

10.3%

No prior period
Net Interest Margin

3.4%

Previous: 3.1%+7.3%
Efficiency Ratio

52.0%

Previous: 50.7%+2.5%
Nonperforming Assets/Total Assets

0.4%

No prior period
Capital Expenditures

$2.56M

Previous: $2.47M+3.9%
Free Cash Flow

$116M

Previous: $98.9M+17.1%
Net Income

$51.7M

Previous: $51.6M+0.2%
Operating Income

$69.9M

Previous: $70.7M-1.1%
Cash & Equivalents

$507M

Previous: $316M+60.2%
Total Assets

$19.2B

Previous: $17.9B+7.1%
Stock-Based Comp

$2.98M

Previous: $1.56M+90.5%

Revenue & EPS history

Hope Bancorp · Revenue · Quarterly

$163M

Q4 2022+11.1%vs Q4 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

While 2023 will bring further challenges, the progress made to strengthen and diversify the franchise over the past few years will serve well with more sustainable earnings power.

Tailwinds

  • Ability to continue strengthening franchise value during an economic downturn.
  • Generating profitable growth.
  • Enhancing long-term shareholder value.
  • Lower-risk, more diversified loan portfolio.
  • Improvements in asset quality.

Headwinds

  • Operating environment becoming more challenging.
  • Market's expectations for the economic conditions to weaken further in 2023.
  • Decline in loans receivable quarter-over-quarter.
  • Migration to higher-yielding deposit accounts.
  • Higher interest expense on deposits and borrowings.

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 2022

Historical avgQ4 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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