Hope Bancorp, Inc. (the "Company") (NASDAQ:HOPE), the holding company of Bank of Hope (the "Bank"), today reported unaudited financial results for its fourth quarter and full year ended December 31, 2022.

For the three months ended December 31, 2022, net income totaled $51.7 million, or $0.43 per diluted common share. This compares with net income of $53.7 million, or $0.45 per diluted common share, in the preceding third quarter and $51.6 million, or $0.43 per diluted common share, in the year-ago fourth quarter. Pre-provision net revenue⁽¹⁾ totaled $78.1 million for the 2022 fourth quarter, versus $82.6 million for the 2022 third quarter and $72.2 million for the 2021 fourth quarter.

For the full year ended December 31, 2022, net income totaled $218.3 million, or $1.81 per diluted common share, compared with $204.6 million, or $1.66 per diluted common share for the year ended December 31, 2021. Pre-provision net revenue for the full year 2022 increased 16.2% to $305.6 million from $263.1 million for 2021.

"Notwithstanding the operating environment becoming more challenging during the fourth quarter of 2022, we delivered solid financial results which reflect the benefits of the lower-risk, more diversified loan portfolio that we have built," said Kevin S. Kim, Chairman, President and Chief Executive Officer. "Given the market's expectations for the economic conditions to weaken further in 2023, we became even more selective with the loans that we added to the portfolio in terms of loan types and rates. New loan originations for the fourth quarter of 2022 totaled $793 million with commercial loans accounting for 54% of new production. While we had a slight decline in our loans receivable quarter-over-quarter, we closed the year with loans increasing more than 10% year-over-year, or greater than 12% when excluding SBA PPP loans. Total deposits increased 2% quarter-over-quarter, but the growth reflects increased balances of time deposits, representing in part the migration to higher-yielding deposit accounts in the current interest rate environment. The highlight of our fourth quarter was clearly the continued improvements we are experiencing in our asset quality with total nonperforming assets and total criticized loans decreasing 28% and 8%, respectively, quarter-over-quarter.

"While we are cognizant that 2023 will bring further challenges, we believe the progress we have made to strengthen and diversify our franchise over the past few years will serve us well with more sustainable earnings power. We are confident in our ability to continue strengthening franchise value during an economic downturn, while generating profitable growth that will further enhance long-term shareholder value," said Kim.

Q4 2022 Highlights

Loan originations totaled $793.4 million, representing a well-diversified mix of new loan production with new 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. Excluding PPP, loans receivable decreased 0.5% quarter-over-quarter, but increased 12.2% 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.
Company recorded a provision for credit losses of $8.2 million, primarily to account for declines in certain projected macroeconomic factors.
Net interest income decreased 1.7% quarter-over-quarter, but increased 12.9% year-over-year.
Net interest margin decreased 13 basis points quarter-over-quarter, but increased 23 basis points year-over-year.
Total deposits increased 1.5% quarter-over-quarter and 4.6% year-over-year.
Total cost of deposits increased 83 basis points quarter-over-quarter and 139 basis points year-over-year, reflecting the impact of an aggregate increase of 425 basis points in the Federal Funds target rates during 2022.
Pre-provision net revenue decreased 5.5% quarter-over-quarter, but increased 8.2% year-over-year.

______________

⁽¹⁾Pre-provision net revenue, a non-GAAP financial measure, represents the sum of net interest income before provision (credit) for credit losses and noninterest income less noninterest expense. Management's reasons and purposes for using this non-GAAP financial measure are set forth on Page 7 of this earnings release. A quantitative reconciliation of the most directly comparable GAAP to this non-GAAP financial measures is provided in the accompanying financial information on Table Page 10.

Financial Highlights

	At or for the Three Months Ended
(dollars in thousands, except per share data) (unaudited)	12/31/2022			9/30/2022			12/31/2021
Net income	$	51,703		$	53,748		$	51,623
Diluted earnings per share	$	0.43		$	0.45		$	0.43
Pre-provision net revenue ("PPNR") ⁽¹⁾	$	78,113		$	82,627		$	72,179
Net interest income before provision for credit losses	$	150,521		$	153,186		$	133,318
Net interest margin		3.36	%		3.49	%		3.13	%
Noninterest income	$	12,110		$	13,355		$	13,097
Noninterest expense	$	84,518		$	83,914		$	74,236
Net loans receivable	$	15,241,181		$	15,330,626		$	13,812,193
Deposits	$	15,738,801		$	15,502,209		$	15,040,450
Total cost of deposits		1.62	%		0.79	%		0.23	%
Nonaccrual loans⁽²⁾	$	49,687		$	64,571		$	54,616
Nonperforming loans to loans receivable⁽²⁾		0.44	%		0.62	%		0.78	%
ACL to loans receivable		1.05	%		1.04	%		1.01	%
ACL to nonaccrual loans⁽²⁾		326.76	%		248.66	%		257.34	%
ACL to nonperforming assets⁽²⁾		233.82	%		165.55	%		125.76	%
Provision for credit losses	$	8,200		$	9,200		$	1,500
Net charge offs (recoveries)	$	6,402		$	219		$	(2,276	)
Return on average assets ("ROA")		1.10	%		1.17	%		1.16	%
Return on average equity ("ROE")		10.35	%		10.58	%		9.93	%
ROA (PPNR) ⁽¹⁾		1.66	%		1.79	%		1.62	%
ROE (PPNR)⁽¹⁾		15.64	%		16.26	%		13.88	%
Return on average tangible common equity ("ROTCE")⁽¹⁾		13.54	%		13.77	%		12.85	%
Noninterest expense / average assets		1.79	%		1.82	%		1.67	%
Efficiency ratio		51.97	%		50.39	%		50.70	%

⁽¹⁾	Pre-provision net revenue, ROA (PPNR), ROE (PPNR), and ROTCE are non-GAAP financial measures. Management's reasons and purposes for using these non-GAAP financial measures are set forth on Table Page 10 of this earnings release. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.
⁽²⁾	Excludes delinquent SBA loans that are guaranteed and currently in liquidation.

Operating Results for the 2022 Fourth Quarter

Net interest income before provision for credit losses for the 2022 fourth quarter decreased 2% to $150.5 million from $153.2 million in the 2022 third quarter and increased 13% from $133.3 million in the 2021 fourth quarter. The Company attributed the quarter-over-quarter decrease predominantly to higher interest expense on deposits and borrowings, which more than offset higher levels of interest income due to increases in loan yields and the average balance of loans receivable.

The net interest margin for the 2022 fourth quarter decreased 13 basis points to 3.36% from 3.49% in the preceding third quarter as the increase in the cost of deposits outpaced the expansion of the yields on interest-earning assets. Compared with the year-ago fourth quarter, the net interest margin increased 23 basis points.

The weighted average yield on loans for the 2022 fourth quarter was 5.36%, up 71 basis points from 4.65% in the 2022 third quarter and up 141 basis points from the year-ago fourth quarter. The Company attributed the increases in weighted average yield on loans to the repricing of its variable rate loans following the increases in the market interest rates, as well as a significant increase in the average rate of new loans originated during the quarter and throughout the year.

The weighted average cost of deposits for the 2022 fourth quarter increased by 83 basis points to 1.62% from 0.79% in the 2022 third quarter, reflecting a 119 basis point increase in the cost of interest bearing deposits due to the accelerated pace of Federal Funds target rate hikes in the second half of the year. Compared with the year-ago fourth quarter, the weighted average cost of deposits for the 2022 fourth quarter increased 139 basis points from 0.23%, reflecting a 205 basis point increase in the cost of interest bearing deposits.

Noninterest income for the 2022 fourth quarter decreased 9% to $12.1 million from $13.4 million in the 2022 third quarter. Quarter-over-quarter reductions in the net gains on sales of SBA loans, service fees on deposit accounts and other income and fees were partially offset by an increase in net gains on sales of other loans. The decrease in other income and fees largely reflects lower swap fee income versus the preceding third quarter. During the 2022 fourth quarter, the Company sold $41.2 million in the guaranteed portion of SBA 7(a) loans and $3.5 million in retail mortgage loans, compared with $57.8 million and $3.7 million, respectively, sold in the preceding third quarter. Noninterest income for the 2021 fourth quarter totaled $13.1 million.

Noninterest expense for the 2022 fourth quarter increased 1% to $84.5 million from $83.9 million for the preceding third quarter and increased 14% from $74.2 million for the year-ago fourth quarter. The quarter-over-quarter increase largely reflects higher costs associated with earnings credit rebates. The year-over-year increase is attributed to higher salaries and employee benefits and higher costs of earnings credit rebates.

Salaries and employee benefits expense for the 2022 fourth quarter decreased to $52.7 million from $53.2 million in the preceding third quarter, largely reflecting a decrease in incentive compensation expense. Salaries and employee benefits expense for the 2021 fourth quarter totaled $44.6 million. The Company's FTE count was 1,549 at December 31, 2022, 1,539 at September 30, 2022 and 1,476 at December 31, 2021.

Earnings credit rebates for the 2022 fourth quarter increased to $5.0 million from $4.7 million in the 2022 third quarter and $555,000 in the 2021 fourth quarter, as a result of the increases in the Federal Funds rates.

The Company's efficiency ratio for the 2022 fourth quarter was 51.97%, compared with 50.39% in the preceding third quarter and 50.70% in the year-ago fourth quarter. Noninterest expense as a percentage of average assets was 1.79% for the 2022 fourth quarter, compared with 1.82% for the 2022 third quarter and 1.67% for the 2021 fourth quarter.

The effective tax rate for the 2022 fourth quarter was 26.1%, compared with 26.8% for the preceding third quarter and 27.0% for the year-ago fourth quarter.

Balance Sheet Summary

New loan originations during the 2022 fourth quarter totaled $793.4 million, compared with $1.35 billion in the preceding third quarter and $1.24 billion in the 2021 fourth quarter.

Following are the components of new loan production for the quarters ended December 31, 2022, September 30, 2022, and December 31, 2021.

	For the Three Months Ended
(dollars in thousands) (unaudited)	12/31/2022		9/30/2022		12/31/2021
Commercial real estate	$	302,983	$	500,826	$	573,978
Commercial		424,340		732,341		532,634
SBA		28,825		47,428		54,848
Residential mortgage		36,720		67,079		81,325
Consumer		555		1,020		70
Total new loan originations	$	793,423	$	1,348,694	$	1,242,855

At December 31, 2022, loans receivable decreased 0.6% to $15.40 billion from $15.49 billion at September 30, 2022, but increased 10.4% from $13.95 billion at December 31, 2021.

Following is the loan portfolio composition and percentage of total loans as of December 31, 2022, September 30, 2022 and December 31, 2021:

(dollars in thousands)	12/31/2022				9/30/2022				12/31/2021
(unaudited)	Balance		Percentage		Balance		Percentage		Balance		Percentage
Commercial loans	$	5,109,532	33.2	%	$	5,124,421	33.1	%	$	4,208,674	30.2	%
Real estate loans		9,414,580	61.1	%		9,504,893	61.3	%		9,105,931	65.3	%
Consumer and other loans		879,428	5.7	%		861,873	5.6	%		638,138	4.5	%
Loans receivable	$	15,403,540	100.0	%	$	15,491,187	100.0	%	$	13,952,743	100.0	%

Total deposits at December 31, 2022 increased 1.5% to $15.74 billion from $15.50 billion at September 30, 2022, largely reflecting an increase in time deposits, and increased 4.6% year-over-year from $15.04 billion at December 31, 2021. Quarter-over-quarter, noninterest bearing demand and money market and NOW deposits decreased 13.3% and 4.6%, respectively, but these decreases were more than offset by a 34.6% increase in time deposits. On a year-over-year basis, noninterest bearing demand deposits at December 31, 2022 decreased 15.7%, money market and NOW deposits decreased 9.1%, and time deposits increased 79.0%.

Following is the deposit composition as of December 31, 2022, September 30, 2022 and December 31, 2021:

(dollars in thousands) (unaudited)	12/31/2022		9/30/2022		12/31/2021
Noninterest bearing demand deposits	$	4,849,493	$	5,590,952	$	5,751,870
Money market and other		5,615,784		5,885,093		6,178,850
Saving deposits		283,464		317,841		321,377
Time deposits		4,990,060		3,708,323		2,788,353
Total deposit balances	$	15,738,801	$	15,502,209	$	15,040,450

Following is the deposit composition as a percentage of total deposits and a breakdown of cost of deposits as of and for the quarters ended December 31, 2022, September 30, 2022 and December 31, 2021:

	Deposit Breakdown						Cost of Deposits
(unaudited)	12/31/2022		9/30/2022		12/31/2021		Q4 2022		Q3 2022		Q4 2021
Noninterest bearing demand deposits	30.8	%	36.1	%	38.3	%	—	%	—	%	—	%
Money market and other	35.7	%	38.0	%	41.1	%	2.42	%	1.24	%	0.37	%
Saving deposits	1.8	%	2.0	%	2.1	%	1.29	%	1.18	%	1.18	%
Time deposits	31.7	%	23.9	%	18.5	%	2.53	%	1.27	%	0.34	%
Total deposit balances	100.0	%	100.0	%	100.0	%	1.62	%	0.79	%	0.23	%

Allowance for Credit Losses

For the 2022 fourth quarter, the Company recorded a provision for credit losses of $8.2 million, compared with $9.2 million in the preceding third quarter and $1.5 million in the 2021 fourth quarter.

Following is the allowance for credit losses and allowance coverage ratios as of December 31, 2022, September 30, 2022 and December 31, 2021:

(dollars in thousands) (unaudited)	12/31/2022			9/30/2022			12/31/2021
Allowance for credit losses	$	162,359		$	160,561		$	140,550
Allowance for credit loss/loans receivable		1.05	%		1.04	%		1.01	%
Allowance for credit losses/nonperforming loans⁽¹⁾		242.26	%		168.11	%		128.75	%

⁽¹⁾	Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $9.8 million, $9.9 million and $19.5 million at December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

Credit Quality

Following are the components of nonperforming assets as of December 31, 2022, September 30, 2022 and December 31, 2021:

(dollars in thousands) (unaudited)	12/31/2022		9/30/2022		12/31/2021
Loans on nonaccrual status ⁽¹⁾	$	49,687	$	64,571	$	54,616
Delinquent loans 90 days or more on accrual status		401		5,306		2,131
Accruing troubled debt restructured loans		16,931		25,631		52,418
Total nonperforming loans		67,019		95,508		109,165
Other real estate owned		2,418		1,480		2,597
Total nonperforming assets	$	69,437	$	96,988	$	111,762

⁽¹⁾	Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $9.8 million, $9.9 million and $19.5 million at December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

Total nonperforming assets at December 31, 2022 decreased 28.4% to $69.4 million from $97.0 million at September 30, 2022 and decreased 37.9% from $111.8 million at December 31, 2021.

Following are net charge offs (recoveries) and net charge offs (recoveries) to average loans receivable on an annualized basis for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021:

	For the Three Months Ended
(dollars in thousands) (unaudited)	12/31/2022			9/30/2022			12/31/2021
Net charge offs (recoveries)	$	6,402		$	219		$	(2,276	)
Net charge offs (recoveries)/average loans receivable (annualized)		0.17	%		0.01	%		(0.07	)%

Following are the components of criticized loan balances as of December 31, 2022, September 30, 2022 and December 31, 2021:

(dollars in thousands) (unaudited)	12/31/2022		9/30/2022		12/31/2021
Special mention	$	157,263	$	79,399	$	257,194
Substandard		104,073		204,713		242,397
Total criticized loans	$	261,336	$	284,112	$	499,591

At December 31, 2022, total criticized loans decreased 8.0% quarter-over-quarter and decreased 47.7% year-over-year, representing the lowest level experienced by the Company since 2011.

Capital

At December 31, 2022, the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a "well-capitalized" financial institution. Following are capital ratios for the Company as of December 31, 2022, September 30, 2022 and December 31, 2021:

(unaudited)	12/31/2022	9/30/2022	12/31/2021	Minimum Guideline for "Well-Capitalized" Bank
Common Equity Tier 1 Capital	10.55%	10.32%	11.03%	6.50%
Tier 1 Leverage Ratio	10.15%	10.25%	10.11%	5.00%
Tier 1 Risk-Based Ratio	11.15%	10.92%	11.70%	8.00%
Total Risk-Based Ratio	11.97%	11.72%	12.42%	10.00%

Following are tangible common equity ("TCE") per share and TCE as a percentage of tangible assets as of December 31, 2022, September 30, 2022 and December 31, 2021:

(unaudited)	12/31/2022	9/30/2022	12/31/2021
Tangible common equity per share ⁽¹⁾	$12.96	$12.60	$13.51
Tangible common equity to tangible assets ⁽¹⁾	8.29%	8.09%	9.31%

⁽¹⁾

Tangible common equity represents common equity less goodwill and net other intangible assets. Tangible common equity per share represents tangible common equity divided by the number of shares issued and outstanding. Tangible assets represent total assets less goodwill and net other intangible assets. Tangible common equity to tangible assets is the ratio of tangible common equity over tangible assets. Tangible common equity, tangible common equity per share, tangible assets and tangible common equity to tangible assets are non-GAAP financial measures. Management's reasons and purposes for using these non-GAAP financial measures are set forth in the following section. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 10.

Non-GAAP Financial Metrics

This news release contains certain non-GAAP financial measure disclosures, including pre-provision net revenue, ROA (PPNR), ROE (PPNR), tangible common equity, tangible common equity per share, tangible assets and tangible common equity to tangible assets. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding its operational performance and the Company's and the Bank's capital levels and has included these figures in response to market participant interest in these financial metrics. A reconciliation of the most directly comparable GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 10.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Tuesday, January 24, 2023 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review unaudited financial results for its fourth quarter and full year ended December 31, 2022. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the "Hope Bancorp Call." A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp's website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp's website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp's website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through January 31, 2023, replay access code 9204177.

About Hope Bancorp, Inc.

Hope Bancorp, Inc. is the holding company of Bank of Hope, the first and only super regional Korean American bank in the United States with $19.16 billion in total assets as of December 31, 2022. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 54 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama and Georgia. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.

Forward-Looking Statements

Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market and statements regarding our business strategies, objectives and vision. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words "will," "believes," "expects," "anticipates," "intends," "plans," "estimates" or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The Company's actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible further deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company's allowances for credit losses; regulatory risks associated with current and future regulations; and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization. For additional information concerning these and other risk factors, see the Company's most recent Annual Report on Form 10-K. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)

Assets:	12/31/2022			9/30/2022			% change		12/31/2021			% change
Cash and due from banks	$	506,776		$	331,336		53	%	$	316,266		60	%
Investment securities		2,243,195			2,264,533		(1	)%		2,666,275		(16	)%
Federal Home Loan Bank ("FHLB") stock and other investments		61,761			65,192		(5	)%		87,961		(30	)%
Loans held for sale, at the lower of cost or fair value		49,245			41,989		17	%		99,049		(50	)%
Loans receivable		15,403,540			15,491,187		(1	)%		13,952,743		10	%
Allowance for credit losses		(162,359	)		(160,561	)	1	%		(140,550	)	16	%
Net loans receivable		15,241,181			15,330,626		(1	)%		13,812,193		10	%
Accrued interest receivable		55,460			42,363		31	%		41,842		33	%
Premises and equipment, net		46,859			46,169		1	%		45,667		3	%
Bank owned life insurance		77,078			76,788		—	%		77,081		—	%
Goodwill		464,450			464,450		—	%		464,450		—	%
Servicing assets		11,628			11,601		—	%		10,418		12	%
Other intangible assets, net		5,726			6,212		(8	)%		7,671		(25	)%
Other assets		401,132			402,129		—	%		260,188		54	%
Total assets	$	19,164,491		$	19,083,388		—	%	$	17,889,061		7	%

Liabilities:
Deposits	$	15,738,801		$	15,502,209		2	%	$	15,040,450		5	%
FHLB and FRB borrowings		865,000			1,072,000		(19	)%		300,000		188	%
Convertible notes, net		217,148			216,913		—	%		216,209		—	%
Subordinated debentures		106,565			106,258		—	%		105,354		1	%
Accrued interest payable		26,668			11,713		128	%		4,272		524	%
Other liabilities		190,981			198,570		(4	)%		129,793		47	%
Total liabilities	$	17,145,163		$	17,107,663		—	%	$	15,796,078		9	%

Stockholders' Equity:
Common stock, $0.001 par value	$	137		$	137		—	%	$	136		1	%
Capital surplus		1,431,003			1,428,052		—	%		1,421,698		1	%
Retained earnings		1,083,712			1,048,738		3	%		932,561		16	%
Treasury stock, at cost		(264,667	)		(264,667	)	—	%		(250,000	)	(6	)%
Accumulated other comprehensive (loss) gain, net		(230,857	)		(236,535	)	2	%		(11,412	)	(1,923	)%
Total stockholders' equity		2,019,328			1,975,725		2	%		2,092,983		(4	)%
Total liabilities and stockholders' equity	$	19,164,491		$	19,083,388		—	%	$	17,889,061		7	%

Common stock shares - authorized		150,000,000			150,000,000					150,000,000
Common stock shares - outstanding		119,495,209			119,479,253					120,006,452
Treasury stock shares		17,382,835			17,382,835					16,343,849

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)

	Three Months Ended											Twelve Months Ended
	12/31/2022			9/30/2022		% change		12/31/2021		% change		12/31/2022		12/31/2021			% change

Interest and fees on loans	$	207,958		$	175,078	19	%	$	133,821	55	%	$	660,732	$	528,174		25	%
Interest on investment securities		14,758			13,498	9	%		10,657	38	%		52,220		35,492		47	%
Interest on federal funds sold and other investments		1,521			606	151	%		691	120	%		3,163		2,866		10	%
Total interest income		224,237			189,182	19	%		145,169	54	%		716,115		566,532		26	%

Interest on deposits		63,276			30,667	106	%		8,905	611	%		114,839		42,011		173	%
Interest on other borrowings and convertible notes		10,440			5,329	96	%		2,946	254	%		22,855		11,751		94	%
Total interest expense		73,716			35,996	105	%		11,851	522	%		137,694		53,762		156	%

Net interest income before provision (credit) for credit losses		150,521			153,186	(2	)%		133,318	13	%		578,421		512,770		13	%
Provision (credit) for credit losses		8,200			9,200	(11	)%		1,500	447	%		9,600		(12,200	)	N/A
Net interest income after provision (credit) for credit losses		142,321			143,986	(1	)%		131,818	8	%		568,821		524,970		8	%

Service fees on deposit accounts		2,159			2,535	(15	)%		1,894	14	%		8,938		7,275		23	%
International service fees		762			834	(9	)%		1,061	(28	)%		3,134		3,586		(13	)%
Loan servicing fees, net		928			981	(5	)%		747	24	%		3,588		3,367		7	%
Wire transfer fees		863			856	1	%		916	(6	)%		3,477		3,519		(1	)%
Net gains on sales of SBA loans		2,154			2,782	(23	)%		3,614	(40	)%		16,343		8,448		93	%
Net gains on sales of residential mortgage loans		20			29	(31	)%		530	(96	)%		882		4,435		(80	)%
Net gains on sales of other loans		623			117	432	%		—	100	%		193		—		100	%
Other income and fees		4,601			5,221	(12	)%		4,335	6	%		14,842		12,964		14	%
Total noninterest income		12,110			13,355	(9	)%		13,097	(8	)%		51,397		43,594		18	%

Salaries and employee benefits		52,694			53,222	(1	)%		44,608	18	%		204,719		175,151		17	%
Occupancy		7,072			6,682	6	%		7,391	(4	)%		28,267		28,898		(2	)%
Furniture and equipment		5,045			4,967	2	%		4,642	9	%		19,434		18,079		7	%
Advertising and marketing		1,869			1,739	7	%		2,329	(20	)%		7,470		8,707		(14	)%
Data processing and communications		2,860			2,469	16	%		2,789	3	%		10,683		10,331		3	%
Professional fees		1,325			1,196	11	%		2,439	(46	)%		6,314		12,168		(48	)%
FDIC assessment		1,596			1,633	(2	)%		1,366	17	%		6,248		5,109		22	%
Credit related expenses		1,040			873	19	%		873	19	%		5,897		4,400		34	%
OREO (income) expense		(425	)		378	N/A			811	N/A			315		1,638		(81	)%
Software impairment		—			—	—	%		—	—	%		—		2,146		(100	)%
Earnings credit rebates		5,002			4,685	7	%		555	801	%		10,998		1,842		497	%
Other		6,440			6,070	6	%		6,433	—	%		23,825		24,823		(4	)%
Total noninterest expense		84,518			83,914	1	%		74,236	14	%		324,170		293,292		11	%
Income before income taxes		69,913			73,427	(5	)%		70,679	(1	)%		296,048		275,272		8	%
Income tax provision		18,210			19,679	(7	)%		19,056	(4	)%		77,771		70,700		10	%
Net income	$	51,703		$	53,748	(4	)%	$	51,623	—	%	$	218,277	$	204,572		7	%

Earnings Per Common Share - Basic	$	0.43		$	0.45			$	0.43			$	1.82	$	1.67
Earnings Per Common Share - Diluted	$	0.43		$	0.45			$	0.43			$	1.81	$	1.66

Weighted Average Shares Outstanding - Basic		119,483,499			119,476,035				120,160,300				119,824,970		122,321,768
Weighted Average Shares Outstanding - Diluted		120,102,665			119,996,523				121,025,925				120,472,345		123,133,025

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)

	For the Three Months Ended (Annualized)						For the Twelve Months Ended
Profitability measures:	12/31/2022		9/30/2022		12/31/2021		12/31/2022		12/31/2021
ROA	1.10	%	1.17	%	1.16	%	1.20	%	1.17	%
ROE	10.35	%	10.58	%	9.93	%	10.73	%	9.88	%
ROA (PPNR) ⁽¹⁾	1.66	%	1.79	%	1.62	%	1.68	%	1.51	%
ROE (PPNR) ⁽¹⁾	15.64	%	16.26	%	13.88	%	15.03	%	12.70	%
ROTCE ⁽²⁾	13.54	%	13.77	%	12.85	%	13.97	%	12.80	%
Net interest margin	3.36	%	3.49	%	3.13	%	3.36	%	3.09	%
Efficiency ratio	51.97	%	50.39	%	50.70	%	51.47	%	52.72	%
Noninterest expense / average assets	1.79	%	1.82	%	1.67	%	1.78	%	1.68	%

⁽¹⁾

ROA (PPNR) and ROE (PPNR) are non-GAAP financial measures. Management's reasons and purposes for using these non-GAAP financial measures are set forth on Table Page 10 of this earnings release. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.

⁽²⁾

Average tangible common equity is calculated by subtracting average goodwill and average core deposit intangible assets from average stockholders' equity. This is a non-GAAP measure that we believe provides investors with information that is useful in understanding our financial performance and position. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measure is provided in the accompanying financial information on Table Page 10.

Hope Bancorp, Inc. Selected Financial Data
Unaudited (dollars in thousands)

	Three Months Ended
	12/31/2022						9/30/2022						12/31/2021
			Interest		Annualized				Interest		Annualized				Interest		Annualized
	Average		Income/		Average		Average		Income/		Average		Average		Income/		Average
	Balance		Expense		Yield/Cost		Balance		Expense		Yield/Cost		Balance		Expense		Yield/Cost
INTEREST EARNING ASSETS:
Loans, including loans held for sale	$	15,393,843	$	207,958	5.36	%	$	14,925,298	$	175,078	4.65	%	$	13,447,009	$	133,821	3.95	%
Investment securities		2,254,678		14,758	2.60	%		2,366,696		13,498	2.26	%		2,674,903		10,657	1.58	%
FHLB stock and other investments		114,077		1,521	5.29	%		107,724		606	2.23	%		773,579		691	0.35	%
Total interest earning assets	$	17,762,598	$	224,237	5.01	%	$	17,399,718	$	189,182	4.31	%	$	16,895,491	$	145,169	3.41	%

INTEREST BEARING LIABILITIES:
Deposits:
Demand, interest bearing	$	5,733,448	$	34,991	2.42	%	$	6,255,271	$	19,614	1.24	%	$	5,961,363	$	5,522	0.37	%
Savings		297,128		968	1.29	%		324,487		969	1.18	%		316,758		946	1.18	%
Time deposits		4,276,655		27,317	2.53	%		3,146,432		10,084	1.27	%		2,823,613		2,437	0.34	%
Total interest bearing deposits		10,307,231		63,276	2.44	%		9,726,190		30,667	1.25	%		9,101,734		8,905	0.39	%
FHLB and FRB borrowings		838,335		6,988	3.31	%		448,837		2,393	2.12	%		216,882		648	1.19	%
Convertible notes, net		217,002		1,322	2.38	%		216,762		1,322	2.39	%		216,078		1,322	2.39	%
Subordinated debentures		102,496		2,130	8.13	%		102,182		1,614	6.18	%		101,295		976	3.77	%
Total interest bearing liabilities	$	11,465,064	$	73,716	2.55	%	$	10,493,971	$	35,996	1.36	%	$	9,635,989	$	11,851	0.49	%
Noninterest bearing demand deposits		5,174,217						5,719,155						5,967,251
Total funding liabilities/cost of funds	$	16,639,281			1.76	%	$	16,213,126			0.88	%	$	15,603,240			0.30	%
Net interest income/net interest spread			$	150,521	2.46	%			$	153,186	2.95	%			$	133,318	2.92	%
Net interest margin					3.36	%					3.49	%					3.13	%

Cost of deposits:
Noninterest bearing demand deposits	$	5,174,217	$	—	—	%	$	5,719,155	$	—	—	%	$	5,967,251	$	—	—	%
Interest bearing deposits		10,307,231		63,276	2.44	%		9,726,190		30,667	1.25	%		9,101,734		8,905	0.39	%
Total deposits	$	15,481,448	$	63,276	1.62	%	$	15,445,345	$	30,667	0.79	%	$	15,068,985	$	8,905	0.23	%

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Twelve Months Ended

12/31/2022

12/31/2021

Interest

Average

Income/

Average

Income/

Average

Balance

Expense

Yield/Cost

Balance

Expense

Yield/Cost

INTEREST EARNING ASSETS:

Loans, including loans held for sale

14,634,627

660,732

Hope Bancorp Reports 2022 Fourth Quarter and Full-Year Financial Results