Earnings Review and Free Research Report: Hope Bancorp Reported Record Earnings; EPS Soared 50%

Research Desk Line-up: First Interstate BancSystem Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Hope Bancorp, Inc. (NASDAQ: HOPE), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=HOPE, following the Company’s announcement of its financial results on October 24, 2017, for the third quarter fiscal 2017. The Bank’s net interest income increased 19% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Regional – Pacific Banks industry. Pro-TD has currently selected First Interstate BancSystem, Inc. (NASDAQ: FIBK) for due-diligence and potential coverage as the Company reported on October 30, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on First Interstate BancSystem when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HOPE; also brushing on FIBK. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=HOPE

http://protraderdaily.com/optin/?symbol=FIBK

Earnings Reviewed

For three months ended September 30, 2017, Hope’s revenue was $163.9 million, up 23% compared to revenue of $133.7 million in Q3 2016. The Company’s adjusted revenue was $139.5 million for the reported quarter, exceeding analysts’ expectations of $137.9 million.

During Q3 FY17, Hope’s total interest income increased 23% to $147.64 million from $119.55 million in the same period last year. For the reported quarter, the Company’s total interest expense increased 52% to $24.38 million from $16.08 million in Q3 FY16. For the reported quarter, the Company’s net interest income increased 19% to $123.26 million from $103.47 million in Q3 FY16.

For the reported quarter, the Company’s net interest margin increased 8 basis points to 3.83% from 3.75% in Q2 FY17. The increase was mainly due to an 18-basis point increase in average loan yield. The increase in loan yield was due to the fourth quarter impact of June fed rate increase, an increase in merger-related accretion income of $1.3 million and the recognition of $2.6 million of interest income related to the recovery of an acquired loans that had been charged off.

During Q3 FY17, Hope’s total non-interest income increased 15% to $16.25 million from $14.15 million in the same period last year. For the reported quarter, the Company’s salaries and employee benefits expenses increased 18% to $35.99 million from $30.46 million in Q3 FY16. For the reported quarter, the Company’s advertising and marketing expenses decreased 4% to $2.22 million from $2.31 million in Q3 FY16. During Q3 FY17, Hope’s total non-interest expenses decreased 9% to $61.84 million from $67.85 million in the same period last year.

During Q3 FY17, Hope’s net income increased 71% to $44.56 million on a y-o-y basis from $26.11 million in the same period last year. For the reported quarter, the Company’s diluted EPS increased 50% to $0.33 on a y-o-y basis from $0.22 in the same period last year. Adjusted diluted EPS surpassed analysts’ expectations of $0.30.

Credit quality

During Q3 FY17, Hope’s total net charge-offs decreased 37.5% to $1.84 million from $2.95 million in the same period last year.

For the reported quarter, the Company’s allowance for loan losses increased 4.5% to $83.63 million from $79.98 million in the third quarter of 2016.

During Q3 FY17, the Company’s total non-performing assets increased 7.5% to $125.75 million from $116.95 million in the third quarter of 2016.

Balance Sheet

As on September 30, 2017, Hope’s cash and due from banks decreased 7% to $405.30 million from $437.33 million on December 31, 2016. During Q3 FY17, the Company’s subordinated debentures increased 1% to $100.59 million from $99.81 million in the fourth quarter of last year.

For the reported quarter, the Company’s accrued interest receivable increased 8% to $29.15 million from $26.88 million in Q4 FY16. During Q3 FY17, Hope’s accrued interest payable increased 26% to $13.74 million from $10.86 million in Q4 FY16.

During Q3 FY17, Hope’s efficiency ratio was 44.32% compared to 57.68% in the same period last year.

For the reported quarter, Hope’s common equity tier 1 ratio was 12.29% compared to 11.96% in Q3 FY16. During Q3 FY17, the Company’s book value per share was $14.28 compared to $13.73 in the same period last year.

Stock Performance

At the closing bell, on Wednesday, November 08, 2017, Hope Bancorp’s stock slipped 1.52%, ending the trading session at $17.45. A total volume of 537.54 thousand shares have exchanged hands, which was higher than the 3-month average volume of 495.26 thousand shares. The Company’s stock price surged 4.62% in the last three months and 10.72% in the previous twelve months. The stock is trading at a PE ratio of 14.65 and has a dividend yield of 2.98%. The stock currently has a market cap of $2.38 billion.

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