Hope Bancorp reports Q2 EPS 21c, consensus 22c

Reports Q2 net interest income before provision for credit losses for the 2024 second quarter totaled $105.9M, compared with $115M in the immediately preceding first quarter, a decrease of $9.1M, or 8%, quarter-over-quarter. Approximately $4M of the quarter-over-quarter decrease was attributable to the net impact of the Company’s payoff of its Bank Term Funding Program BTFP borrowings that matured in late March 2024 and early April 2024, which the Company paid off with interest earning cash. .”During the 2024 second quarter, our net interest margin expanded, our operating expenses decreased, and our return on assets improved, compared with the 2024 first quarter,” said Kevin S. Kim, Chairman, President and Chief Executive Officer. “These highlights reflect continued progress towards improving our financial performance following our strategic reorganization in the fourth quarter of last year. “Quarter-over-quarter, total deposits were essentially stable with growth in noninterest bearing demand deposits and other customer deposits largely offsetting a planned reduction in brokered time deposits. “Following the signing of the definitive merger agreement with Territorial Bancorp Inc. (TBNK), the stock holding company of Territorial Savings Bank, on April 26 , we have been diligently planning for a smooth integration,” continued Kim. “The addition of Territorial’s stable and low-cost deposit base will enhance our deposit franchise. Territorial’s residential mortgage loans, with their excellent asset quality, will accelerate the diversification of our loan portfolio. Combined, we will be the largest regional bank catering to multi-ethnic customers with full-service branches across the continental United States and Hawai’i.” ____________________