Hope Bancorp reported a net income of $26.8 million for the second quarter of 2020, a decrease compared to the previous quarter and the year-ago quarter. The results were impacted by the COVID-19 crisis and reductions in the Fed Funds rate.
New loan originations totaled $832 million, including $480 million of PPP loans.
Total deposits increased 10.0% quarter-over-quarter.
Total cost of deposits reduced by 47 basis points quarter-over-quarter.
Noninterest expense improved to 1.60% as a percentage of average assets.
The company expects stable loan yields, continued reductions in deposit costs, and deployment of excess cash balances to lead to an expansion of net interest margin in the coming quarters. Initiatives are being developed to restructure the balance sheet and contain expenses to optimize operational performance, which are expected to improve profitability.
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