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Mar 31, 2020
Hope Bancorp Q1 2020 Earnings Report
Hope Bancorp's financial performance for Q1 2020 was affected by the implementation of CECL methodology amidst the COVID-19 pandemic, leading to a significant provision for credit losses, though operational performance remained solid.
Key Takeaways
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.
Forward Guidance
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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