NASDAQ$HOPE

Hope Bancorp Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Hope Bancorp's financial performance was marked by revenue growth, improved asset quality, and strategic expense management.

Hope Bancorp reported a net income of $24.3 million, or $0.20 per diluted common share, for Q4 2024. The company saw revenue growth driven by noninterest income and a decrease in noninterest expense, leading to a 14% increase in pre-provision net revenue. Asset quality improved with a decrease in criticized loans and nonperforming assets.

  • Net income totaled $24.3 million, or $0.20 per diluted common share.
  • Pre-provision net revenue increased 14% to $40.4 million.
  • Total revenue grew, led by strong growth in noninterest income, and noninterest expense decreased.
  • Asset quality improved with an 11% decrease in criticized loans and nonperforming assets down 13%.

Headline financials

Total Revenue

$118M

Previous: $135M-12.7%
EPS (adj)

$0.20

Previous: $0.32-37.5%
Capital Expenditures

-$2.27M

Previous: $2M-213.4%
Free Cash Flow

$47.4M

No prior period
Net Income

$24.3M

Previous: $26.5M-8.1%
Operating Income

$30.4M

Previous: $33.6M-9.5%

Revenue & EPS history

Hope Bancorp · Revenue · Quarterly

$118M

Q4 2024-12.7%vs Q4 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

Hope Bancorp is preparing for the integration of Territorial Savings Bank, which is expected to contribute low-cost core deposits and high-quality residential mortgage loans. The merger is anticipated to be completed in Q1 2025, pending regulatory approvals. The company is also committed to supporting the rebuilding needs of communities impacted by wildfires.

Tailwinds

  • Integration of Territorial Savings Bank expected to add low-cost core deposits.
  • Territorial Savings Bank's residential mortgage loans have pristine asset quality.
  • Merger anticipated to be completed in Q1 2025.
  • Ample liquidity and a tangible common equity ratio over 10% supports growth.
  • Committed to supporting wildfire recovery efforts.

Headwinds

  • Merger completion is subject to regulatory approvals.
  • Integration may present difficulties and delays.
  • Higher than anticipated transaction costs are possible.
  • Deposit attrition and customer loss could occur post-merger.
  • Required governmental approvals may impose regulatory constraints.

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 2024

Historical avgQ4 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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