Hope Bancorp reports Q3 EPS 20c, consensus 22c

Reports Q3 Net interest income before provision for credit losses for the 2024 third quarter totaled $104.8M . This compares with net interest income before provision for credit losses of $105.9 million in the immediately preceding second quarter. Interest income was $235.1M in the third quarter of 2024, up from $232.6M in the second quarter of 2024. Growth in interest income was offset by increased interest expense, which was $130.3M in the third quarter, compared with $126.7M in the second quarter. The quarter-over-quarter increase in interest expense reflects the change in average total deposit costs, which increased five basis points to 3.44% for the 2024 third quarter, up from 3.39% in the immediately preceding second quarter. End-of-period total deposit costs decreased nine basis points to 3.34% as of September 30 from 3.43% as of June 30, 2024, indicating an inflection point in deposit costs by deposit type. .”We are pleased to see a higher level of productivity from our banking teams, along with the continued success of our core deposit gathering initiatives. Quarter-over-quarter, customer deposit growth was a robust 11% annualized, supporting loan growth and offsetting a planned reduction in brokered deposits,” said Kevin S. Kim, Chairman, President and Chief Executive Officer. “In the 2024 third quarter, loans receivable grew 2% on an annualized basis, marking a turn-around in our loan growth trend. Additionally, more than two-thirds of the net growth in noninterest bearing demand deposits this quarter came from small business accounts. “Regulatory risk-based capital ratios for Hope Bancorp (HOPE) are the highest since our merger with Wilshire Bancorp in 2016. As of September 30 our total capital ratio was a strong 14.8%, and our tangible equity ratio was a robust 10.1%,” continued Kim. “The success of our balance sheet management has resulted in high levels of capital, ample liquidity, and a lower loan-to-deposit ratio, positioning us well to increase our market share, add new client relationships, and generate profitable growth as economic conditions and loan demand improve in the coming year,” said Kim. “We are excited about our pending merger with Territorial Bancor ( TBNK), the stock holding company of Territorial Savings Bank. We believe this compelling combination will strengthen the Territorial franchise for the long term, providing many advantages for customers and employees as part of a larger organization with greater resources, enhanced technology platforms, and an expanded array of banking products and services.”