The following is a summary of the Hope Bancorp, Inc. (HOPE) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Hope Bancorp reported Q2 2024 net income of $25.3 million, and diluted EPS of $0.21. Excluding notable items, net income was $26.6 million, and EPS was $0.22.

• Net interest income for the quarter was $106 million, marking a decrease of $9 million from Q1 2024.

• Non-interest income stood at $11 million, a 34% increase from Q1 due to resumed SBA loan sales.

• Decreased non-interest expenses to $81 million, down from $85 million from the previous quarter, reflecting a positive outcome from restructuring.

• Paid a quarterly common stock dividend of $0.14 per share.

Business Progress:

• The bank expects a growth in high-quality loans and deposits through reorganization and a strategic focus on deposit management.

• Hope Bancorp has resumed SBA loan sales and is looking to continue this into the second half of the year.

• The bank is anticipating positive loan growth due to robust residential mortgage growth and commercial loan production.

• The merger with Territorial Bancorp is set to close by year-end, expected to more than double Hope's residential mortgage portfolio.

Opportunities:

• Positive loan growth expected in the latter half of the year following a focus on deposit improvements.

• The pending merger with Territorial Bancorp will bolster Hope's residential mortgage portfolio.

Risks:

• Elevated payoffs and paydowns could potentially slow down loan growth.

• Interest rate cuts may affect net interest income, which is expected to decline by approximately 10% in Q4 2024 relative to Q4 2023.

More details: Hope Bancorp IR

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