Hope Bancorp, Inc. (HOPE) has reported 4.04 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $26.10 million, or $0.22 a share in the quarter, compared with $25.09 million, or $0.32 a share for the same period last year.
Revenue during the quarter surged 40.05 percent to $111.12 million from $79.34 million in the previous year period. Net interest income for the quarter rose 50.48 percent over the prior year period to $103.47 million. Non-interest income for the quarter rose 26.50 percent over the last year period to $14.15 million.
Hope Bancorp, Inc. has made provision of $6.50 million for loan losses during the quarter, up 983.33 percent from $0.60 million in the same period last year.
Net interest margin contracted 10 basis points to 3.77 percent in the quarter from 3.87 percent in the last year period. Efficiency ratio for the quarter deteriorated to 57.68 percent from 45.98 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"It has certainly been an exciting and busy quarter for our new company as we merged the former BBCN and Wilshire to form the only Korean-American super regional bank in the United States," said Kevin S. Kim, president and chief executive officer of Hope Bancorp, Inc.
Assets outpace liabilities growth
Total assets stood at $13,507.56 million as on Sep. 30, 2016, up 78.13 percent compared with $7,583 million on Sep. 30, 2015. On the other hand, total liabilities stood at $11,656.36 million as on Sep. 30, 2016, up 75.19 percent from $6,653.43 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $10,481.22 million as on Sep. 30, 2016, up 77.60 percent compared with $5,901.61 million on Sep. 30, 2015. Deposits stood at $10,702.50 million as on Sep. 30, 2016, up 77.52 percent compared with $6,028.86 million on Sep. 30, 2015.
Investments stood at $1,558.72 million as on Sep. 30, 2016, up 60.20 percent or $585.76 million from year-ago. Shareholders equity stood at $1,851.20 million as on Sep. 30, 2016, up 99.15 percent or $921.63 million from year-ago.
Return on assets moved down 46 basis points to 0.89 percent in the quarter from 1.35 percent in the last year period. At the same time, return on equity decreased 436 basis points to 6.60 percent in the quarter from 10.96 percent in the last year period. At the same time, return on average equity decreased 383 basis points to 8.61 percent in the quarter from 12.44 percent in the last year period.
Nonperforming assets moved up 8.22 percent or $8.88 million to $116.95 million on Sep. 30, 2016 from $108.07 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.87 percent in the quarter, down from 1.43 percent in the last year period.
Tier-1 leverage ratio stood at 12.97 percent for the quarter, up from 11.76 percent for the previous year quarter. Book value per share was $13.70 for the quarter, up 17.29 percent or $2.02 compared to $11.68 for the same period last year.
