Hope Bancorp reported a net income of $26.0 million, or $0.21 per diluted common share, for the first quarter of 2020. The results were impacted by a $28.0 million provision for credit losses due to the adoption of CECL and the economic outlook deterioration from COVID-19.
Pre-tax, pre-provision income increased 8% quarter-over quarter.
New loan originations of $625 million led to a 2.5% increase in loans receivable quarter-over-quarter, or 10% annualized.
Total deposits increased 2.5% quarter-over-quarter, or 10% annualized.
Favorable mix-shift to lower cost core deposits contributed to a 15 basis point reduction quarter-over-quarter in total deposit costs.
The COVID-19 crisis has created an extremely challenging business environment with unprecedented levels of uncertainties as to the magnitude and duration of the pandemic, as well as the depth to which this will push our economy into a recession. However, we entered the pandemic crisis with very strong capital, robust liquidity, and excellent credit quality, which supports our confidence in our ability to navigate the difficult landscape.
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