In This Story
Hope Bancorp, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total assets to $17.35 billion from $19.13 billion at the end of the previous year. This decrease is primarily attributed to a reduction in cash and cash equivalents, which were used to pay off $1.70 billion of FRB BTFP borrowings.
Loans receivable were reported at $13.62 billion, a decrease from $13.85 billion at the end of 2023, due to declines in commercial and industrial loans and commercial real estate loans, partially offset by growth in residential mortgage loans.
Total deposits were $14.73 billion, slightly down from $14.75 billion at the end of 2023. The composition of deposits shifted, with a decrease in noninterest bearing demand deposits and an increase in time deposits.
The company reported net income of $24.2 million for the third quarter of 2024, down from $30.0 million in the same quarter of the previous year. The decrease in net income was primarily due to a decrease in net interest income.
Net interest income for the quarter was $104.8 million, compared to $135.4 million in the previous year. The decline was driven by a decrease in the average balances of loans and interest earning cash, and an increase in the cost of deposits.
The provision for credit losses was $3.3 million for the quarter, down from $16.9 million in the previous year. The decrease was primarily due to lower provisions for commercial and industrial loans.
Noninterest income for the quarter increased to $11.8 million from $8.3 million in the previous year, driven by gains on sales of SBA loans.
Noninterest expense decreased to $81.3 million from $86.8 million in the previous year, primarily due to lower salaries and employee benefits expense.
The company maintained a strong capital position with a common equity Tier 1 capital ratio of 13.07% and a total capital ratio of 14.82% as of September 30, 2024.
Hope Bancorp continues to focus on managing its liquidity and capital resources effectively, with total borrowing capacity, cash and cash equivalents, and unpledged securities totaling $7.57 billion at the end of the quarter.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Hope Bancorp Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.