Hope Bancorp reports Q3 EPS 25c, consensus 26c

Reports Q3 revenue $143.68M, consensus $138.25M. Recorded a provision for credit losses of $16.8M vs. $8.9M in the preceding second quarter. Q3 net charge offs were $31.0M vs. $219K last year. “Our Q3 2023 net interest margin expanded 13 basis points, and our net interest income grew 4% quarter-over-quarter,” stated CEO Kevin Kim. “We maintained disciplined expense control and our noninterest expenses decreased 1% over the same period. However, we recorded a provision for credit losses of $17M for Q3, and certain one-time gains in Q2 2023 noninterest income did not reoccur. As a result, our net income declined compared with the prior quarter. Our balance sheet continued to strengthen. Total deposits grew to $15.7M at September 30, 2023, up 1% from June 30, 2023, reflecting growth in customer deposits, partially offset by a planned reduction of brokered time deposits. Our total capital ratio increased to 13.23% as of September 30, 2023, and all our regulatory capital ratios expanded quarter-over-quarter. Our deposit growth, taken together with our expanding capital and ample liquidity, positions us well to take advantage of profitable growth opportunities going forward.”