10-K 1 hope-20231231.htm 10-K hope-20231231
FALSE2023FY0001128361December 31http://fasb.org/us-gaap/2023#AccountingStandardsUpdate202006Memberhttp://www.bankofhope.com/20231231#AccountingStandardsUpdate202006TaxImpactMemberhttp://fasb.org/us-gaap/2023#AccountingStandardsUpdate202202Memberhttp://www.bankofhope.com/20231231#AccountingStandardsUpdate202202TaxImpactMemberP7Yhttp://fasb.org/us-gaap/2023#InterestReceivablehttp://fasb.org/us-gaap/2023#InterestReceivableP1YP2Y0.0450760P3YP5Y0M0D0.045076000011283612023-01-012023-12-3100011283612023-06-30iso4217:USD00011283612024-02-20xbrli:shares00011283612023-10-012023-12-3100011283612023-12-3100011283612022-12-31iso4217:USDxbrli:shares00011283612022-01-012022-12-3100011283612021-01-012021-12-310001128361us-gaap:CommonStockMember2020-12-310001128361us-gaap:AdditionalPaidInCapitalMember2020-12-310001128361us-gaap:RetainedEarningsMember2020-12-310001128361us-gaap:TreasuryStockCommonMember2020-12-310001128361us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100011283612020-12-310001128361us-gaap:AccountingStandardsUpdate202006Member2021-01-012021-12-310001128361us-gaap:AdditionalPaidInCapitalMemberus-gaap:AccountingStandardsUpdate202006Member2021-01-012021-12-310001128361us-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate202006Member2021-01-012021-12-310001128361hope:AccountingStandardsUpdate202006TaxImpactMember2021-01-012021-12-310001128361us-gaap:AdditionalPaidInCapitalMemberhope:AccountingStandardsUpdate202006TaxImpactMember2021-01-012021-12-310001128361us-gaap:CommonStockMember2021-01-012021-12-310001128361us-gaap:AdditionalPaidInCapitalMember2021-01-012021-12-310001128361us-gaap:RetainedEarningsMember2021-01-012021-12-310001128361us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-12-310001128361us-gaap:TreasuryStockCommonMember2021-01-012021-12-310001128361us-gaap:CommonStockMember2021-12-310001128361us-gaap:AdditionalPaidInCapitalMember2021-12-310001128361us-gaap:RetainedEarningsMember2021-12-310001128361us-gaap:TreasuryStockCommonMember2021-12-310001128361us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-3100011283612021-12-310001128361us-gaap:CommonStockMember2022-01-012022-12-310001128361us-gaap:AdditionalPaidInCapitalMember2022-01-012022-12-310001128361us-gaap:RetainedEarningsMember2022-01-012022-12-310001128361us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310001128361us-gaap:TreasuryStockCommonMember2022-01-012022-12-310001128361us-gaap:CommonStockMember2022-12-310001128361us-gaap:AdditionalPaidInCapitalMember2022-12-310001128361us-gaap:RetainedEarningsMember2022-12-310001128361us-gaap:TreasuryStockCommonMember2022-12-310001128361us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001128361us-gaap:AccountingStandardsUpdate202202Member2023-01-012023-12-310001128361us-gaap:AccountingStandardsUpdate202202Memberus-gaap:RetainedEarningsMember2023-01-012023-12-310001128361hope:AccountingStandardsUpdate202202TaxImpactMember2023-01-012023-12-310001128361us-gaap:CommonStockMember2023-01-012023-12-310001128361us-gaap:AdditionalPaidInCapitalMember2023-01-012023-12-310001128361us-gaap:RetainedEarningsMember2023-01-012023-12-310001128361us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310001128361us-gaap:CommonStockMember2023-12-310001128361us-gaap:AdditionalPaidInCapitalMember2023-12-310001128361us-gaap:RetainedEarningsMember2023-12-310001128361us-gaap:TreasuryStockCommonMember2023-12-310001128361us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-31hope:branchhope:officehope:segmentxbrli:pure0001128361srt:MinimumMemberus-gaap:BuildingMember2023-12-310001128361us-gaap:BuildingMembersrt:MaximumMember2023-12-310001128361srt:MinimumMemberus-gaap:FurnitureAndFixturesMember2023-12-310001128361srt:MaximumMemberus-gaap:FurnitureAndFixturesMember2023-12-310001128361us-gaap:ComputerEquipmentMembersrt:MinimumMember2023-12-310001128361us-gaap:ComputerEquipmentMembersrt:MaximumMember2023-12-310001128361us-gaap:ComputerSoftwareIntangibleAssetMembersrt:MinimumMember2023-12-310001128361us-gaap:ComputerSoftwareIntangibleAssetMembersrt:MaximumMember2023-12-310001128361srt:MinimumMemberus-gaap:CoreDepositsMember2023-12-310001128361us-gaap:CoreDepositsMembersrt:MaximumMember2023-12-310001128361us-gaap:AccountingStandardsUpdate202202Memberus-gaap:ChangeInAccountingPrincipleOtherMember2023-01-010001128361us-gaap:MutualFundMember2023-12-310001128361us-gaap:MutualFundMember2022-12-310001128361hope:CorrespondentBankStockMember2023-12-310001128361hope:CommunityDevelopmentFinancialInstitutionsMember2023-12-310001128361hope:CommunityReinvestmentActInvestmentsMember2023-12-310001128361hope:CorrespondentBankStockMember2022-12-310001128361hope:CommunityDevelopmentFinancialInstitutionsMember2022-12-310001128361hope:CommunityReinvestmentActInvestmentsMember2022-12-3100011283612022-10-012022-12-310001128361us-gaap:USTreasuryNotesSecuritiesMember2023-12-310001128361us-gaap:USTreasuryNotesSecuritiesMember2022-12-310001128361us-gaap:AgencySecuritiesMember2023-12-310001128361us-gaap:AgencySecuritiesMember2022-12-310001128361us-gaap:CollateralizedMortgageObligationsMember2023-12-310001128361us-gaap:CollateralizedMortgageObligationsMember2022-12-310001128361us-gaap:ResidentialMortgageBackedSecuritiesMember2023-12-310001128361us-gaap:ResidentialMortgageBackedSecuritiesMember2022-12-310001128361us-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310001128361us-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310001128361us-gaap:AssetBackedSecuritiesMember2023-12-310001128361us-gaap:AssetBackedSecuritiesMember2022-12-310001128361us-gaap:CorporateDebtSecuritiesMember2023-12-310001128361us-gaap:CorporateDebtSecuritiesMember2022-12-310001128361us-gaap:MunicipalBondsMember2023-12-310001128361us-gaap:MunicipalBondsMember2022-12-310001128361hope:NonUsGovernmentAndAgencySecuritiesMemberus-gaap:StockholdersEquityTotalMemberus-gaap:CreditConcentrationRiskMember2023-01-012023-03-310001128361hope:NonUsGovernmentAndAgencySecuritiesMemberus-gaap:StockholdersEquityTotalMemberus-gaap:CreditConcentrationRiskMember2023-01-012023-12-310001128361us-gaap:AvailableforsaleSecuritiesMember2023-12-310001128361us-gaap:AvailableforsaleSecuritiesMember2022-12-31hope:security0001128361hope:ResidentialCollateralizedMortgageObligationsMember2023-12-310001128361hope:ResidentialCollateralizedMortgageObligationsMember2022-12-310001128361us-gaap:USTreasuryAndGovernmentMember2023-12-310001128361hope:RealEstatePortfolioSegmentMember2023-12-310001128361hope:RealEstatePortfolioSegmentMember2022-12-310001128361us-gaap:CommercialPortfolioSegmentMember2023-12-310001128361us-gaap:CommercialPortfolioSegmentMember2022-12-310001128361us-gaap:ResidentialPortfolioSegmentMember2023-12-310001128361us-gaap:ResidentialPortfolioSegmentMember2022-12-310001128361us-gaap:ConsumerPortfolioSegmentMember2023-12-310001128361us-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361us-gaap:ResidentialMortgageMember2023-12-310001128361us-gaap:SubstandardMember2023-12-310001128361us-gaap:ResidentialMortgageMember2022-12-310001128361us-gaap:SubstandardMember2022-12-310001128361hope:Chapter11LiquidationMember2023-01-012023-12-310001128361sic:Z65002023-01-012023-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2022-01-012022-12-310001128361us-gaap:SubstandardMemberhope:RealEstatePortfolioSegmentMember2022-01-012022-12-310001128361hope:RealEstatePortfolioSegmentMember2022-01-012022-12-310001128361hope:RealEstatePortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001128361us-gaap:CommercialPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001128361srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310001128361srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001128361hope:RealEstatePortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:CommercialPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:ResidentialPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:ConsumerPortfolioSegmentMember2023-01-012023-12-310001128361hope:RealEstatePortfolioSegmentMember2021-12-310001128361us-gaap:CommercialPortfolioSegmentMember2021-12-310001128361us-gaap:ResidentialPortfolioSegmentMember2021-12-310001128361us-gaap:ConsumerPortfolioSegmentMember2021-12-310001128361us-gaap:CommercialPortfolioSegmentMember2022-01-012022-12-310001128361us-gaap:ResidentialPortfolioSegmentMember2022-01-012022-12-310001128361us-gaap:ConsumerPortfolioSegmentMember2022-01-012022-12-310001128361hope:RealEstatePortfolioSegmentMember2020-12-310001128361us-gaap:CommercialPortfolioSegmentMember2020-12-310001128361us-gaap:ResidentialPortfolioSegmentMember2020-12-310001128361us-gaap:ConsumerPortfolioSegmentMember2020-12-310001128361hope:RealEstatePortfolioSegmentMember2021-01-012021-12-310001128361us-gaap:CommercialPortfolioSegmentMember2021-01-012021-12-310001128361us-gaap:ResidentialPortfolioSegmentMember2021-01-012021-12-310001128361us-gaap:ConsumerPortfolioSegmentMember2021-01-012021-12-310001128361us-gaap:RealEstateMemberhope:RealEstatePortfolioSegmentMember2023-12-310001128361hope:RealEstatePortfolioSegmentMemberhope:OtherThanRealEstateCollateralMember2023-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:CollateralPledgedMember2023-12-310001128361us-gaap:RealEstateMemberhope:RealEstatePortfolioSegmentMember2022-12-310001128361hope:RealEstatePortfolioSegmentMemberhope:OtherThanRealEstateCollateralMember2022-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:CollateralPledgedMember2022-12-310001128361us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001128361us-gaap:CommercialPortfolioSegmentMemberhope:OtherThanRealEstateCollateralMember2023-12-310001128361us-gaap:CommercialPortfolioSegmentMemberus-gaap:CollateralPledgedMember2023-12-310001128361us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001128361us-gaap:CommercialPortfolioSegmentMemberhope:OtherThanRealEstateCollateralMember2022-12-310001128361us-gaap:CommercialPortfolioSegmentMemberus-gaap:CollateralPledgedMember2022-12-310001128361us-gaap:RealEstateMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310001128361us-gaap:ResidentialPortfolioSegmentMemberhope:OtherThanRealEstateCollateralMember2023-12-310001128361us-gaap:ResidentialPortfolioSegmentMemberus-gaap:CollateralPledgedMember2023-12-310001128361us-gaap:RealEstateMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310001128361us-gaap:ResidentialPortfolioSegmentMemberhope:OtherThanRealEstateCollateralMember2022-12-310001128361us-gaap:ResidentialPortfolioSegmentMemberus-gaap:CollateralPledgedMember2022-12-310001128361us-gaap:RealEstateMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001128361hope:OtherThanRealEstateCollateralMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001128361us-gaap:CollateralPledgedMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001128361us-gaap:RealEstateMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361hope:OtherThanRealEstateCollateralMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361us-gaap:CollateralPledgedMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361us-gaap:RealEstateMember2023-12-310001128361hope:OtherThanRealEstateCollateralMember2023-12-310001128361us-gaap:CollateralPledgedMember2023-12-310001128361us-gaap:RealEstateMember2022-12-310001128361hope:OtherThanRealEstateCollateralMember2022-12-310001128361us-gaap:CollateralPledgedMember2022-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001128361us-gaap:FinancingReceivables60To89DaysPastDueMemberhope:RealEstatePortfolioSegmentMember2023-12-310001128361us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberhope:RealEstatePortfolioSegmentMember2023-12-310001128361us-gaap:FinancialAssetPastDueMemberhope:RealEstatePortfolioSegmentMember2023-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001128361us-gaap:FinancingReceivables60To89DaysPastDueMemberhope:RealEstatePortfolioSegmentMember2022-12-310001128361us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberhope:RealEstatePortfolioSegmentMember2022-12-310001128361us-gaap:FinancialAssetPastDueMemberhope:RealEstatePortfolioSegmentMember2022-12-310001128361us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001128361us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001128361us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001128361us-gaap:FinancialAssetPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001128361us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001128361us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-12-310001128361us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-12-310001128361us-gaap:FinancialAssetPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001128361us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310001128361us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310001128361us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310001128361us-gaap:FinancialAssetPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310001128361us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310001128361us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310001128361us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310001128361us-gaap:FinancialAssetPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310001128361us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001128361us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001128361us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001128361us-gaap:FinancialAssetPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001128361us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361us-gaap:FinancialAssetPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361us-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310001128361us-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310001128361us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310001128361us-gaap:FinancialAssetPastDueMember2023-12-310001128361us-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001128361us-gaap:FinancingReceivables60To89DaysPastDueMember2022-12-310001128361us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-12-310001128361us-gaap:FinancialAssetPastDueMember2022-12-310001128361us-gaap:PassMemberhope:RealEstatePortfolioSegmentMember2023-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2023-12-310001128361us-gaap:SubstandardMemberhope:RealEstatePortfolioSegmentMember2023-12-310001128361us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001128361us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2023-12-310001128361us-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001128361us-gaap:PassMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310001128361us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2023-12-310001128361us-gaap:SubstandardMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310001128361us-gaap:PassMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001128361us-gaap:SpecialMentionMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001128361us-gaap:SubstandardMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310001128361us-gaap:PassMember2023-12-310001128361us-gaap:SpecialMentionMember2023-12-310001128361us-gaap:PassMemberhope:RealEstatePortfolioSegmentMember2022-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2022-12-310001128361us-gaap:SubstandardMemberhope:RealEstatePortfolioSegmentMember2022-12-310001128361us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001128361us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2022-12-310001128361us-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001128361us-gaap:PassMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310001128361us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2022-12-310001128361us-gaap:SubstandardMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310001128361us-gaap:PassMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361us-gaap:SpecialMentionMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361us-gaap:SubstandardMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001128361us-gaap:PassMember2022-12-310001128361us-gaap:SpecialMentionMember2022-12-310001128361us-gaap:AccountingStandardsUpdate202202Membersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2023-01-010001128361us-gaap:PrincipalForgivenessMemberus-gaap:CommercialRealEstateMember2023-01-012023-12-310001128361us-gaap:PrincipalForgivenessMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:PrincipalForgivenessMemberus-gaap:ResidentialPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:PrincipalForgivenessMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:PrincipalForgivenessMember2023-01-012023-12-310001128361us-gaap:ContractualInterestRateReductionMemberus-gaap:CommercialRealEstateMember2023-01-012023-12-310001128361us-gaap:ContractualInterestRateReductionMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:ContractualInterestRateReductionMemberus-gaap:ResidentialPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:ContractualInterestRateReductionMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:ContractualInterestRateReductionMember2023-01-012023-12-310001128361us-gaap:PaymentDeferralMemberus-gaap:CommercialRealEstateMember2023-01-012023-12-310001128361us-gaap:PaymentDeferralMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:PaymentDeferralMemberus-gaap:ResidentialPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:PaymentDeferralMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:PaymentDeferralMember2023-01-012023-12-310001128361us-gaap:ExtendedMaturityMemberus-gaap:CommercialRealEstateMember2023-01-012023-12-310001128361us-gaap:CommercialPortfolioSegmentMemberus-gaap:ExtendedMaturityMember2023-01-012023-12-310001128361us-gaap:ExtendedMaturityMemberus-gaap:ResidentialPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:ExtendedMaturityMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-12-310001128361us-gaap:ExtendedMaturityMember2023-01-012023-12-310001128361us-gaap:CommercialRealEstateMember2023-01-012023-12-31hope:modified_loan0001128361hope:TroubledDebtRestructuringAccrualStatusMember2022-12-310001128361hope:TroubledDebtRestructuringNonaccrualStatusMember2022-12-310001128361us-gaap:RealEstateMember2023-12-310001128361us-gaap:RealEstateMember2022-12-310001128361us-gaap:CommercialPortfolioSegmentMember2022-12-310001128361hope:FosterBanksharesIncMemberus-gaap:CoreDepositsMember2023-12-310001128361hope:FosterBanksharesIncMemberus-gaap:CoreDepositsMember2022-12-310001128361us-gaap:CoreDepositsMemberhope:WilshireBancorpIncMember2023-12-310001128361us-gaap:CoreDepositsMemberhope:WilshireBancorpIncMember2022-12-310001128361us-gaap:CoreDepositsMember2023-12-310001128361us-gaap:CoreDepositsMember2022-12-310001128361us-gaap:CoreDepositsMember2023-01-012023-12-310001128361us-gaap:CoreDepositsMember2022-01-012022-12-310001128361us-gaap:CoreDepositsMember2021-01-012021-12-310001128361us-gaap:LandMember2023-12-310001128361us-gaap:LandMember2022-12-310001128361us-gaap:BuildingAndBuildingImprovementsMember2023-12-310001128361us-gaap:BuildingAndBuildingImprovementsMember2022-12-310001128361us-gaap:FurnitureAndFixturesMember2023-12-310001128361us-gaap:FurnitureAndFixturesMember2022-12-310001128361us-gaap:LeaseholdImprovementsMember2023-12-310001128361us-gaap:LeaseholdImprovementsMember2022-12-310001128361us-gaap:VehiclesMember2023-12-310001128361us-gaap:VehiclesMember2022-12-310001128361us-gaap:ComputerSoftwareIntangibleAssetMember2023-12-310001128361us-gaap:ComputerSoftwareIntangibleAssetMember2022-12-310001128361srt:MinimumMember2023-12-310001128361srt:MaximumMember2023-12-31hope:lease0001128361srt:MinimumMember2023-01-012023-12-310001128361srt:MaximumMember2023-01-012023-12-310001128361hope:CaliforniaStateTreasurerMember2022-12-310001128361hope:CaliforniaStateTreasurerMember2023-12-310001128361hope:CaliforniaStateTreasurerMemberus-gaap:LetterOfCreditMember2023-12-310001128361us-gaap:MoneyMarketFundsMember2023-12-310001128361us-gaap:CertificatesOfDepositMember2023-12-310001128361us-gaap:MoneyMarketFundsMember2022-12-310001128361us-gaap:CertificatesOfDepositMember2022-12-310001128361us-gaap:FederalHomeLoanBankCertificatesAndObligationsFHLBMember2023-12-31utr:Rate0001128361hope:FederalReserveBankDiscountWindow1Member2023-12-310001128361hope:FederalReserveBankBankTermFundingProgramBTFPMember2023-12-310001128361us-gaap:UnsecuredDebtMember2023-12-310001128361us-gaap:FederalReserveBankAdvancesMember2022-12-310001128361hope:FederalReserveBankDiscountWindow1Member2022-12-310001128361us-gaap:UnsecuredDebtMember2022-12-310001128361us-gaap:MortgagesMember2023-12-310001128361us-gaap:MortgagesMember2022-12-310001128361us-gaap:SecuritiesInvestmentMember2023-12-310001128361hope:QualifyingLoansMember2023-12-310001128361us-gaap:UnsecuredDebtMember2022-12-310001128361us-gaap:UnsecuredDebtMember2023-12-310001128361us-gaap:ConvertibleDebtMember2018-06-060001128361us-gaap:ConvertibleDebtMember2018-06-070001128361us-gaap:ConvertibleDebtMember2018-06-072018-06-070001128361us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate202006Member2023-10-012023-12-310001128361srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate202006Member2023-01-012023-09-300001128361us-gaap:ConvertibleDebtMember2023-12-310001128361us-gaap:ConvertibleDebtMember2022-12-310001128361us-gaap:ConvertibleDebtMember2021-12-310001128361us-gaap:ConvertibleDebtMember2023-01-012023-12-310001128361us-gaap:ConvertibleDebtMember2022-01-012022-12-310001128361us-gaap:ConvertibleDebtMember2021-01-012021-12-31hope:grantorTrust0001128361us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMemberhope:NaraCapitalTrustIiiMember2023-12-310001128361us-gaap:JuniorSubordinatedDebtMemberhope:NaraCapitalTrustIiiMember2023-12-310001128361hope:NaraCapitalTrustIiiMember2023-12-310001128361hope:NaraStatutoryTrustIvMemberus-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMember2023-12-310001128361us-gaap:JuniorSubordinatedDebtMemberhope:NaraStatutoryTrustIvMember2023-12-310001128361hope:NaraStatutoryTrustIvMember2023-12-310001128361hope:NaraStatutoryTrustVMemberus-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMember2023-12-310001128361hope:NaraStatutoryTrustVMemberus-gaap:JuniorSubordinatedDebtMember2023-12-310001128361hope:NaraStatutoryTrustVMember2023-12-310001128361us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMemberhope:NaraStatutoryTrustViMember2023-12-310001128361us-gaap:JuniorSubordinatedDebtMemberhope:NaraStatutoryTrustViMember2023-12-310001128361hope:NaraStatutoryTrustViMember2023-12-310001128361us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMemberhope:CenterCapitalTrustIMember2023-12-310001128361us-gaap:JuniorSubordinatedDebtMemberhope:CenterCapitalTrustIMember2023-12-310001128361hope:CenterCapitalTrustIMember2023-12-310001128361hope:WilshireStatutoryTrustIIMemberus-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMember2023-12-310001128361us-gaap:JuniorSubordinatedDebtMemberhope:WilshireStatutoryTrustIIMember2023-12-310001128361hope:WilshireStatutoryTrustIIMember2023-12-310001128361us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMemberhope:WilshireStatutoryTrustIIIMember2023-12-310001128361us-gaap:JuniorSubordinatedDebtMemberhope:WilshireStatutoryTrustIIIMember2023-12-310001128361hope:WilshireStatutoryTrustIIIMember2023-12-310001128361us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMemberhope:WilshireStatutoryTrustIVMember2023-12-310001128361us-gaap:JuniorSubordinatedDebtMemberhope:WilshireStatutoryTrustIVMember2023-12-310001128361hope:WilshireStatutoryTrustIVMember2023-12-310001128361us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMemberhope:SaehanCapitalTrustIMember2023-12-310001128361us-gaap:JuniorSubordinatedDebtMemberhope:SaehanCapitalTrustIMember2023-12-310001128361hope:SaehanCapitalTrustIMember2023-12-310001128361us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMember2023-12-310001128361us-gaap:JuniorSubordinatedDebtMember2023-12-310001128361us-gaap:JuniorSubordinatedDebtMember2022-12-310001128361us-gaap:OtherAssetsMember2023-12-310001128361us-gaap:OtherAssetsMember2022-12-310001128361hope:SaehanBankMemberhope:OwnershipChangeMemberus-gaap:InternalRevenueServiceIRSMember2023-12-310001128361hope:SaehanBankMemberhope:OwnershipChangeMemberus-gaap:StateAndLocalJurisdictionMember2023-12-310001128361hope:OwnershipChangeMemberhope:PacificInternationalBancorpIncMemberus-gaap:InternalRevenueServiceIRSMember2023-12-310001128361hope:OwnershipChangeMemberus-gaap:StateAndLocalJurisdictionMemberhope:PacificInternationalBancorpIncMember2023-12-310001128361us-gaap:InternalRevenueServiceIRSMember2023-12-310001128361us-gaap:StateAndLocalJurisdictionMember2023-12-310001128361hope:SaehanBankMemberhope:OwnershipChangeMemberus-gaap:InternalRevenueServiceIRSMember2022-12-310001128361hope:SaehanBankMemberhope:OwnershipChangeMemberus-gaap:StateAndLocalJurisdictionMember2022-12-310001128361hope:OwnershipChangeMemberhope:PacificInternationalBancorpIncMemberus-gaap:InternalRevenueServiceIRSMember2022-12-310001128361hope:OwnershipChangeMemberus-gaap:StateAndLocalJurisdictionMemberhope:PacificInternationalBancorpIncMember2022-12-310001128361us-gaap:InternalRevenueServiceIRSMember2022-12-310001128361us-gaap:StateAndLocalJurisdictionMember2022-12-310001128361hope:A2019StockIncentivePlanMember2019-05-230001128361hope:A2019StockIncentivePlanMember2023-01-012023-12-310001128361hope:A2019StockIncentivePlanMember2023-09-012023-09-300001128361srt:MinimumMemberhope:A2019StockIncentivePlanMember2023-01-012023-12-310001128361us-gaap:EmployeeStockOptionMemberhope:A2019StockIncentivePlanMember2023-01-012023-12-310001128361hope:StockOptionsAndStockAppreciationRightsMembersrt:MinimumMember2023-01-012023-12-310001128361hope:StockOptionsAndStockAppreciationRightsMembersrt:MaximumMember2023-01-012023-12-310001128361hope:StockOptionsAndStockAppreciationRightsMember2023-01-012023-12-310001128361srt:MinimumMemberhope:PerformanceBasedAwardsMember2023-01-012023-12-310001128361hope:TimeBasedVestingOfGrantsMembersrt:MaximumMember2023-01-012023-12-310001128361us-gaap:EmployeeStockOptionMember2022-12-310001128361us-gaap:EmployeeStockOptionMember2023-01-012023-12-310001128361us-gaap:EmployeeStockOptionMember2023-12-310001128361hope:RetrictedAndPerformanceUnitActivityMember2022-12-310001128361hope:RetrictedAndPerformanceUnitActivityMember2023-01-012023-12-310001128361hope:RetrictedAndPerformanceUnitActivityMember2023-12-310001128361hope:RetrictedAndPerformanceUnitActivityMember2022-01-012022-12-310001128361hope:RetrictedAndPerformanceUnitActivityMember2021-01-012021-12-310001128361us-gaap:EmployeeStockMember2023-01-012023-12-310001128361us-gaap:EmployeeStockMember2023-12-310001128361us-gaap:EmployeeStockMember2022-01-012022-12-310001128361us-gaap:EmployeeStockMember2021-01-012021-12-310001128361us-gaap:DeferredCompensationExcludingShareBasedPaymentsAndRetirementBenefitsMemberhope:DirectorsAndOfficersMember2023-12-310001128361us-gaap:DeferredCompensationExcludingShareBasedPaymentsAndRetirementBenefitsMemberhope:DirectorsAndOfficersMember2022-12-310001128361srt:ExecutiveOfficerMembersrt:MinimumMemberhope:LongTermIncentivePlanMember2023-01-012023-12-310001128361srt:ExecutiveOfficerMembersrt:MaximumMemberhope:LongTermIncentivePlanMember2023-01-012023-12-310001128361srt:ExecutiveOfficerMemberhope:LongTermIncentivePlanMember2023-01-012023-12-310001128361srt:ExecutiveOfficerMemberhope:LongTermIncentivePlanMember2022-01-012022-12-310001128361us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310001128361hope:VestedAfterTwoYearsOfServiceMemberus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310001128361hope:VestedAfterThreeYearsOfServiceMemberus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310001128361hope:VestedAfterFourYearsOfServiceMemberus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310001128361hope:VestedAfterFiveYearsOfServiceMemberus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310001128361us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-12-310001128361us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-12-310001128361us-gaap:DefinedBenefitPostretirementLifeInsuranceMember2023-01-012023-12-310001128361us-gaap:DefinedBenefitPostretirementLifeInsuranceMember2022-01-012022-12-310001128361us-gaap:DefinedBenefitPostretirementLifeInsuranceMember2021-01-012021-12-310001128361us-gaap:CommitmentsToExtendCreditMember2023-12-310001128361us-gaap:CommitmentsToExtendCreditMember2022-12-310001128361us-gaap:StandbyLettersOfCreditMember2023-12-310001128361us-gaap:StandbyLettersOfCreditMember2022-12-310001128361us-gaap:LetterOfCreditMember2023-12-310001128361us-gaap:LetterOfCreditMember2022-12-310001128361hope:LowIncomeHousingTaxCreditMember2023-12-310001128361hope:LowIncomeHousingTaxCreditMember2022-12-310001128361us-gaap:AccountsReceivableMembersrt:MinimumMemberus-gaap:MeasurementInputDiscountRateMember2023-12-310001128361us-gaap:AccountsReceivableMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2023-12-310001128361us-gaap:InventoriesMembersrt:MinimumMemberus-gaap:MeasurementInputDiscountRateMember2023-12-310001128361us-gaap:InventoriesMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2023-12-310001128361us-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001128361us-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310001128361us-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001128361us-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AgencySecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:AgencySecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AgencySecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:AgencySecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CollateralizedMortgageObligationsMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CollateralizedMortgageObligationsMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CollateralizedMortgageObligationsMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CommercialMortgageBackedSecuritiesMember2023-12-310001128361us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001128361us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310001128361us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001128361us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Member2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberhope:MortgageBankingDerivativeMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberhope:MortgageBankingDerivativeMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberhope:MortgageBankingDerivativeMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberhope:MortgageBankingDerivativeMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMemberus-gaap:FairValueInputsLevel1Member2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherContractMember2023-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherContractMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001128361us-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001128361us-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001128361us-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001128361us-gaap:USTreasuryNotesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AgencySecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:AgencySecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:AgencySecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:AgencySecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CollateralizedMortgageObligationsMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CollateralizedMortgageObligationsMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CollateralizedMortgageObligationsMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CollateralizedMortgageObligationsMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310001128361us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001128361us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001128361us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001128361us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel1Member2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberhope:MortgageBankingDerivativeMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberhope:MortgageBankingDerivativeMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberhope:MortgageBankingDerivativeMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberhope:MortgageBankingDerivativeMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherContractMemberus-gaap:FairValueInputsLevel1Member2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherContractMember2022-12-310001128361us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherContractMember2022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001128361us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2022-12-310001128361us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2021-12-310001128361us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2023-01-012023-12-310001128361us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2022-01-012022-12-310001128361us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel3Member2023-12-310001128361us-gaap:OtherContractMemberus-gaap:FairValueInputsLevel3Member2022-12-310001128361us-gaap:OtherContractMemberus-gaap:FairValueInputsLevel3Member2021-12-310001128361us-gaap:OtherContractMemberus-gaap:FairValueInputsLevel3Member2023-01-012023-12-310001128361us-gaap:OtherContractMemberus-gaap:FairValueInputsLevel3Member2022-01-012022-12-310001128361us-gaap:OtherContractMemberus-gaap:FairValueInputsLevel3Member2023-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CommercialPortfolioSegmentMember2023-12-310001128361us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001128361us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberhope:LoansHeldForSaleNetMember2023-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Memberhope:LoansHeldForSaleNetMember2023-12-310001128361us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberhope:LoansHeldForSaleNetMember2023-12-310001128361us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberhope:LoansHeldForSaleNetMember2023-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberhope:OtherRealEstateOwnedMember2023-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Memberhope:OtherRealEstateOwnedMember2023-12-310001128361us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberhope:OtherRealEstateOwnedMember2023-12-310001128361us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberhope:OtherRealEstateOwnedMember2023-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-12-310001128361hope:RealEstatePortfolioSegmentMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CommercialPortfolioSegmentMember2022-12-310001128361us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001128361us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberhope:LoansHeldForSaleNetMember2022-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Memberhope:LoansHeldForSaleNetMember2022-12-310001128361us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberhope:LoansHeldForSaleNetMember2022-12-310001128361us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberhope:LoansHeldForSaleNetMember2022-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberhope:OtherRealEstateOwnedMember2022-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Memberhope:OtherRealEstateOwnedMember2022-12-310001128361us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberhope:OtherRealEstateOwnedMember2022-12-310001128361us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberhope:OtherRealEstateOwnedMember2022-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberhope:RealEstatePortfolioSegmentMemberus-gaap:LoansReceivableMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2023-01-012023-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberhope:RealEstatePortfolioSegmentMemberus-gaap:LoansReceivableMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2022-01-012022-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:LoansReceivableMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2023-01-012023-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:LoansReceivableMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2022-01-012022-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:LoansReceivableMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2023-01-012023-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:LoansReceivableMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2022-01-012022-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberhope:OtherRealEstateOwnedMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2023-01-012023-12-310001128361us-gaap:FairValueMeasurementsNonrecurringMemberhope:OtherRealEstateOwnedMemberus-gaap:ChangeDuringPeriodFairValueDisclosureMember2022-01-012022-12-310001128361us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001128361us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001128361us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001128361us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001128361us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001128361us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001128361hope:FairValueInputsLevel2AndLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001128361hope:FairValueInputsLevel2AndLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001128361us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001128361us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001128361us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001128361us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001128361us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001128361us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001128361hope:FairValueInputsLevel2AndLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001128361hope:FairValueInputsLevel2AndLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001128361us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:OtherLiabilitiesMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMember2023-12-310001128361us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMemberus-gaap:OtherLiabilitiesMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberhope:InterestRateSwapForwardStartingMember2023-12-310001128361us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberhope:InterestRateSwapForwardStartingMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherLiabilitiesMemberhope:InterestRateSwapForwardStartingMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMemberhope:InterestRateSwapForwardStartingMember2023-12-310001128361us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMemberhope:InterestRateSwapForwardStartingMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMemberus-gaap:OtherLiabilitiesMemberhope:InterestRateSwapForwardStartingMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001128361us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherLiabilitiesMember2023-12-310001128361us-gaap:InterestRateSwapMemberhope:CorrespondentBanksMemberus-gaap:NondesignatedMember2023-12-310001128361us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberhope:CorrespondentBanksMemberus-gaap:NondesignatedMember2023-12-310001128361us-gaap:InterestRateSwapMemberhope:CorrespondentBanksMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2023-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberhope:CustomersMember2023-12-310001128361us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberhope:CustomersMember2023-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberhope:CustomersMember2023-12-310001128361hope:CorrespondentBanksMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2023-12-310001128361us-gaap:OtherAssetsMemberhope:CorrespondentBanksMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2023-12-310001128361hope:CorrespondentBanksMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2023-12-310001128361us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberhope:CustomersMember2023-12-310001128361us-gaap:OtherAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberhope:CustomersMember2023-12-310001128361us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberhope:CustomersMember2023-12-310001128361hope:RiskParticipationAgreementMemberus-gaap:NondesignatedMember2023-12-310001128361us-gaap:OtherAssetsMemberhope:RiskParticipationAgreementMemberus-gaap:NondesignatedMember2023-12-310001128361hope:RiskParticipationAgreementMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2023-12-310001128361hope:InterestRateLockCommitmentsAndForwardContractsMemberus-gaap:NondesignatedMember2023-12-310001128361us-gaap:OtherAssetsMemberhope:InterestRateLockCommitmentsAndForwardContractsMemberus-gaap:NondesignatedMember2023-12-310001128361hope:InterestRateLockCommitmentsAndForwardContractsMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2023-12-310001128361us-gaap:NondesignatedMember2023-12-310001128361us-gaap:OtherAssetsMemberus-gaap:NondesignatedMember2023-12-310001128361us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2023-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001128361us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:OtherLiabilitiesMember2022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberhope:InterestRateSwapForwardStartingMember2022-12-310001128361us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberhope:InterestRateSwapForwardStartingMember2022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherLiabilitiesMemberhope:InterestRateSwapForwardStartingMember2022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMemberhope:InterestRateSwapForwardStartingMember2022-12-310001128361us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMemberhope:InterestRateSwapForwardStartingMember2022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMemberus-gaap:OtherLiabilitiesMemberhope:InterestRateSwapForwardStartingMember2022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001128361us-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherLiabilitiesMember2022-12-310001128361us-gaap:InterestRateSwapMemberhope:CorrespondentBanksMemberus-gaap:NondesignatedMember2022-12-310001128361us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberhope:CorrespondentBanksMemberus-gaap:NondesignatedMember2022-12-310001128361us-gaap:InterestRateSwapMemberhope:CorrespondentBanksMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2022-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberhope:CustomersMember2022-12-310001128361us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberhope:CustomersMember2022-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberhope:CustomersMember2022-12-310001128361hope:CorrespondentBanksMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2022-12-310001128361us-gaap:OtherAssetsMemberhope:CorrespondentBanksMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2022-12-310001128361hope:CorrespondentBanksMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2022-12-310001128361us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberhope:CustomersMember2022-12-310001128361us-gaap:OtherAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberhope:CustomersMember2022-12-310001128361us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMemberhope:CustomersMember2022-12-310001128361hope:RiskParticipationAgreementMemberus-gaap:NondesignatedMember2022-12-310001128361us-gaap:OtherAssetsMemberhope:RiskParticipationAgreementMemberus-gaap:NondesignatedMember2022-12-310001128361hope:RiskParticipationAgreementMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2022-12-310001128361hope:InterestRateLockCommitmentsAndForwardContractsMemberus-gaap:NondesignatedMember2022-12-310001128361us-gaap:OtherAssetsMemberhope:InterestRateLockCommitmentsAndForwardContractsMemberus-gaap:NondesignatedMember2022-12-310001128361hope:InterestRateLockCommitmentsAndForwardContractsMemberus-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2022-12-310001128361us-gaap:NondesignatedMember2022-12-310001128361us-gaap:OtherAssetsMemberus-gaap:NondesignatedMember2022-12-310001128361us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2023-12-31hope:derivative0001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberhope:InterestRateOptionNonForwardStartingMemberus-gaap:CashFlowHedgingMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberhope:InterestRateOptionNonForwardStartingMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberhope:InterestRateSwapForwardStartingMember2023-01-012023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMemberhope:InterestRateOptionForwardStartingMember2023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMemberhope:InterestRateOptionForwardStartingMember2023-01-012023-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2022-12-310001128361us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberhope:InterestRateSwapForwardStartingMember2022-01-012022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMemberhope:InterestRateOptionForwardStartingMember2022-12-310001128361us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateCapMemberhope:InterestRateOptionForwardStartingMember2022-01-012022-12-310001128361hope:InterestIncomeOnCashAndDepositsAtOtherBanksMember2023-01-012023-12-310001128361hope:InterestIncomeOnCashAndDepositsAtOtherBanksMember2022-01-012022-12-310001128361hope:InterestIncomeOnCashAndDepositsAtOtherBanksMember2021-01-012021-12-310001128361hope:InterestIncomeAndFeesOnLoansMember2023-01-012023-12-310001128361hope:InterestIncomeAndFeesOnLoansMember2022-01-012022-12-310001128361hope:InterestIncomeAndFeesOnLoansMember2021-01-012021-12-310001128361hope:InterestExpenseOnDepositsMember2023-01-012023-12-310001128361hope:InterestExpenseOnDepositsMember2022-01-012022-12-310001128361hope:InterestExpenseOnDepositsMember2021-01-012021-12-310001128361hope:InterestExpenseOnFHLBAndFRBBorrowingsMember2023-01-012023-12-310001128361hope:InterestExpenseOnFHLBAndFRBBorrowingsMember2022-01-012022-12-310001128361hope:InterestExpenseOnFHLBAndFRBBorrowingsMember2021-01-012021-12-310001128361hope:SwapFeesIncomeMember2023-01-012023-12-310001128361hope:SwapFeesIncomeMember2022-01-012022-12-310001128361hope:SwapFeesIncomeMember2021-01-012021-12-310001128361us-gaap:CashFlowHedgingMember2023-12-310001128361us-gaap:CashFlowHedgingMember2022-12-310001128361us-gaap:InterestRateSwapMember2023-12-310001128361us-gaap:InterestRateSwapMember2022-12-310001128361us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2023-01-012023-12-310001128361us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2022-01-012022-12-310001128361us-gaap:InterestRateLockCommitmentsMember2023-12-310001128361us-gaap:InterestRateLockCommitmentsMember2022-12-3100011283612023-04-012023-06-3000011283612022-06-3000011283612022-07-012022-09-3000011283612023-01-012023-03-3100011283612023-07-012023-09-3000011283612022-01-012022-03-3100011283612022-04-012022-06-300001128361srt:ParentCompanyMember2023-12-310001128361srt:ParentCompanyMemberhope:CommonEquityTier1Member2023-12-310001128361hope:BankSubsidiaryMember2023-12-310001128361hope:BankSubsidiaryMemberhope:Commonequitytier1capitalMember2023-12-310001128361hope:CommonEquityTier1Membersrt:SubsidiariesMember2023-12-310001128361srt:SubsidiariesMember2023-12-310001128361srt:ParentCompanyMember2022-12-310001128361srt:ParentCompanyMemberhope:CommonEquityTier1Member2022-12-310001128361hope:BankSubsidiaryMember2022-12-310001128361hope:BankSubsidiaryMemberhope:Commonequitytier1capitalMember2022-12-310001128361hope:CommonEquityTier1Membersrt:SubsidiariesMember2022-12-310001128361srt:SubsidiariesMember2022-12-310001128361hope:MonthlyServiceChargesMemberhope:NoninterestBearingDepositsMember2023-01-012023-12-310001128361hope:MonthlyServiceChargesMemberhope:NoninterestBearingDepositsMember2022-01-012022-12-310001128361hope:MonthlyServiceChargesMemberhope:NoninterestBearingDepositsMember2021-01-012021-12-310001128361hope:CustomerAnalysisChargesMemberhope:NoninterestBearingDepositsMember2023-01-012023-12-310001128361hope:CustomerAnalysisChargesMemberhope:NoninterestBearingDepositsMember2022-01-012022-12-310001128361hope:CustomerAnalysisChargesMemberhope:NoninterestBearingDepositsMember2021-01-012021-12-310001128361hope:NoninterestBearingDepositsMemberhope:NSFChargesMember2023-01-012023-12-310001128361hope:NoninterestBearingDepositsMemberhope:NSFChargesMember2022-01-012022-12-310001128361hope:NoninterestBearingDepositsMemberhope:NSFChargesMember2021-01-012021-12-310001128361hope:NoninterestBearingDepositsMemberhope:OtherServiceChargesMember2023-01-012023-12-310001128361hope:NoninterestBearingDepositsMemberhope:OtherServiceChargesMember2022-01-012022-12-310001128361hope:NoninterestBearingDepositsMemberhope:OtherServiceChargesMember2021-01-012021-12-310001128361hope:NoninterestBearingDepositsMember2023-01-012023-12-310001128361hope:NoninterestBearingDepositsMember2022-01-012022-12-310001128361hope:NoninterestBearingDepositsMember2021-01-012021-12-310001128361hope:MonthlyServiceChargesMemberus-gaap:InterestBearingDepositsMember2023-01-012023-12-310001128361hope:MonthlyServiceChargesMemberus-gaap:InterestBearingDepositsMember2022-01-012022-12-310001128361hope:MonthlyServiceChargesMemberus-gaap:InterestBearingDepositsMember2021-01-012021-12-310001128361hope:WireTransferFeesMember2023-01-012023-12-310001128361hope:WireTransferFeesMember2022-01-012022-12-310001128361hope:WireTransferFeesMember2021-01-012021-12-310001128361hope:ForeignExchangeFeesMember2023-01-012023-12-310001128361hope:ForeignExchangeFeesMember2022-01-012022-12-310001128361hope:ForeignExchangeFeesMember2021-01-012021-12-310001128361hope:StockOptionsAndRestrictedSharesMember2023-01-012023-12-310001128361hope:StockOptionsAndRestrictedSharesMember2022-01-012022-12-310001128361hope:StockOptionsAndRestrictedSharesMember2021-01-012021-12-3100011283612023-01-012023-09-300001128361us-gaap:ParentMember2023-01-012023-12-310001128361us-gaap:ParentMember2022-01-012022-12-310001128361us-gaap:ParentMember2021-01-012021-12-310001128361us-gaap:ParentMember2022-12-310001128361us-gaap:ParentMember2021-12-310001128361us-gaap:ParentMember2020-12-310001128361us-gaap:ParentMember2023-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission File Number: 000-50245
 ________________________________________
 HOPE BANCORP, INC.
(Exact name of registrant as specified in its charter)
_________________________________________
Delaware95-4849715
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

3200 Wilshire Boulevard, Suite 1400
Los Angeles, California 90010
(Address of principal executives offices, including zip code)
(213) 639-1700
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Common Stock, par value $0.001 per shareHOPENASDAQ Global Select Market
(Title of class)(Trading Symbol)(Name of exchange on which registered)
Securities registered pursuant to Section 12(g) of the Act: None 
______________________________________________ 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
 Yes   No  
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes      No  
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.   
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.  
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes     No  
The aggregate market value of the common stock held by non-affiliates of the registrant based upon the closing sale price of the common stock as of the last business day of the registrant’s most recently completed second fiscal quarter, June 30, 2023, as reported on the NASDAQ Global Select Market, was approximately $962,137,772.
Number of shares outstanding of the registrant’s common stock as of February 20, 2024: 120,127,885
Documents Incorporated by Reference: The information required in Part III, Items 10 through 14 is incorporated herein by reference to the registrant’s definitive proxy statement for the 2024 annual meeting of stockholders which will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year end.



Hope Bancorp, Inc.

Form 10-K
For the Year Ended December 31, 2023

Table of Contents
Page
Forward-Looking Information
PART I
Item 1.Business
Item 1A.Risk Factors
Item 1B.Unresolved Staff Comments
Item 1C.
Cybersecurity
Item 2.Properties
Item 3.Legal Proceedings
Item 4.Mine Safety Disclosures
PART II
Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Item 6.[RESERVED]
Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 7A.Quantitative and Qualitative Disclosures about Market Risk
Item 8.Financial Statements and Supplementary Data
Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A.Controls and Procedures
Item 9B.Other Information
Item 9C.
Disclosure Regarding Foreign Jurisdictions That Prevent Inspections
PART III
Item 10.Directors, Executive Officers and Corporate Governance
Item 11.Executive Compensation
Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 13.Certain Relationships and Related Transactions, and Director Independence
Item 14.Principal Accountant Fees and Services
PART IV
Item 15.Exhibits and Financial Statement Schedules
Item 16.Form 10-K Summary
SIGNATURES


2




Forward-Looking Information
Certain statements in this Annual Report on Form 10-K may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the business environment in which we operate, projections of future performance, perceived opportunities in the market, and statements regarding our business strategies, objectives and vision. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “projects,” “forecasts,” “estimates” or similar expressions. With respect to any such forward-looking statements, the Company claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, trends, uncertainties, and factors that are beyond the Company’s control or ability to predict. The Company’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The risks and uncertainties include, but are not limited to: possible further deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company’s allowances for credit losses; and regulatory risks associated with current and future regulations. For additional information concerning these and other risk factors, see Part I, Item 1A. Risk Factors herein. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.


PART I
Item 1.    BUSINESS
General
Hope Bancorp, Inc. (“Hope Bancorp” on a parent-only basis, and the “Company,” “we” or “our” on a consolidated basis with the Bank of Hope) is a bank holding company headquartered in Los Angeles, California. Hope Bancorp was incorporated in Delaware in the year 2000. We offer commercial and retail banking loan and deposit products through our wholly-owned subsidiary, Bank of Hope, a California state-chartered bank (the “Bank” or “Bank of Hope”). From our roots as a Korean-American focused bank, we have grown to be one of the largest independent commercial banks headquartered in California and serve a multi-ethnic population of customers around the United States. Our network of branches and loan production offices includes locations in California, New York, Texas, Washington, Illinois, New Jersey, Virginia, Georgia, Florida, Alabama, Colorado, and Oregon and includes a representative office in Seoul, South Korea. Our headquarters are located at 3200 Wilshire Boulevard, Suite 1400, Los Angeles, California 90010, and our telephone number at that address is (213) 639-1700.
Hope Bancorp exists primarily for the purpose of holding the stock of the Bank and other subsidiaries it may acquire or establish. Bank of Hope’s deposits are insured by the Federal Deposit Insurance Corporation (the “FDIC”), up to applicable limits.
We file reports with the Securities and Exchange Commission (the “SEC”), which include annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, as well as proxy and information statements in connection with our stockholders’ meetings. The SEC maintains a website that contains the reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The address of the website is www.sec.gov. Our website address is www.bankofhope.com. Electronic copies of our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and other information and reports we file with the SEC and amendments to those reports, are available free of charge by visiting the Investor Relations section of our website. These reports are generally posted as soon as reasonably practicable after they are electronically filed with the SEC. None of the information on or hyperlinked from the Company’s website is incorporated into this Annual Report on Form 10-K.
3



Business Overview
Our principal business activities are conducted through the Bank and primarily consist of earning interest on loans and investment securities, which are primarily funded by customer deposits and other borrowings. Operating revenues consist of the difference between interest received and interest paid, gains and losses on the sale of financial assets, and fees earned for financial services provided to our customers. Interest rates are highly sensitive to many factors that are beyond our control, such as general economic conditions, new legislation and the policies of various governmental and regulatory authorities. Although our business may vary with local and national economic conditions, such variations are not generally seasonal in nature.
We offer a full suite of commercial, corporate and consumer loan, deposit and fee-based products and services, including commercial and commercial real estate lending, Small Business Administration (“SBA”) lending, residential mortgage and other consumer lending, treasury management services, foreign currency exchange solutions, interest rate risk hedging products, and other and international trade financing, among others. Our website at www.bankofhope.com offers internet banking services and applications in both English and Korean.
Lending Activities
Commercial and Industrial Loans
We provide commercial and industrial (“C&I”) loans to small business, middle market, corporate and institutional borrowers through the Company’s branch network, loan production offices, and specialized industry lending teams. These C&I loans are provided for various purposes such as for working capital, purchasing inventory, debt refinancing, business acquisitions, and other business-related financing needs. C&I loans are typically classified as (1) short-term loans (or lines of credit) or (2) long-term loans (or term loans to businesses). Short-term loans are often used to finance business working capital needs, collateralized with current assets, and typically have terms of one year with interest paid monthly on the outstanding balance with the principal balance due at maturity. Long-term loans typically have terms of three to five years with principal and interest paid monthly. The credit worthiness of our borrowers is evaluated before a loan is originated through financial spread and collateral analysis and, if large enough, with financial projections to cover both base and downside case cash flow scenarios; and are largely reviewed quarterly to address potential borrower covenant defaults/appropriate borrower action plans as well as loan risk grading. We seek to establish full banking relationships for all our commercial customers that include all of the Bank’s financing, deposit and fee-based products and services. We also offer C&I loans under the SBA 504, SBA 7(a) and SBA Express Loan (“EZ”) programs which are described in more detail in the subsequent paragraph.

4



Commercial Real Estate Loans
Commercial real estate (“CRE”) loans cover a broad array of commercial real estate segments including retail, industrial, multi-family, gas stations & car washes, mixed-use facilities, hotels/motels, office and other. CRE loans are extended for the purchase and refinance of real estate and are generally secured by first deeds of trust. The maturities on the majority of such loans are generally five to seven years with a 25-year principal amortization schedule and a balloon payment due at maturity. We offer both fixed and floating rate CRE loans in addition to offering clients interest rate hedging options. It is our general policy to restrict CRE loan amounts to no more than 75% of the appraised value of the property at the date of origination.
We also originate loans to finance CRE construction projects including one-to-four family residences, multifamily residences, senior housing, and commercial projects. As construction loans make up only a small percentage of the total loan portfolio, these loans are not further broken down into classes.
Small Business Administration Loans
We extend loans partially guaranteed by the SBA. We primarily extend SBA loans known as SBA 7(a) loans, SBA 504 loans and SBA EZ loans. SBA 7(a) loans are typically extended for working capital needs, purchase of inventory, purchase of machinery and equipment, debt refinance, business acquisitions, start-up financing, or to purchase or construct owner-occupied commercial property. SBA 7(a) loans are typically term loans with maturities up to 10 years for loans not secured by real estate and up to 25 years for real estate secured loans. SBA loans are fully amortizing with monthly payments of principal and interest. SBA 7(a) loans are typically floating rate loans that are secured by business assets and/or real estate. Depending on the loan amount, each loan is typically guaranteed 75% to 85% by the SBA, with a maximum gross loan amount to any one small business borrower of $5.0 million and a maximum SBA guaranteed amount of $3.75 million.
We are generally able to sell the guaranteed portion of the SBA 7(a) loans in the secondary market at a premium while earning servicing fee income on the sold portion over the remaining life of the loan. In addition to the interest yield earned on the unguaranteed portion of the SBA 7(a) loans that are not sold, we can recognize income from gains on sales and from loan servicing on the SBA 7(a) loans that are sold. During the second half of 2023, we elected to retain our SBA 7(a) loan production on our balance sheet and did not record any gain on sale of SBA loans. Due lower premium rates paid in the secondary market, it was more economic to retain the production on balance sheet and earn interest income on the full production amount.
SBA 504 loans are typically extended for the purpose of purchasing owner-occupied commercial real estate or long-term capital equipment. SBA 504 loans are typically extended for up to 20 years or the life of the asset being financed. SBA 504 loans are financed as a participation loan between the Bank and the SBA through a Certified Development Company (“CDC”). Generally, the loans are structured to give the Bank a 50% first deed of trust (“TD”), the CDC a 40% second TD, and the remaining 10% is funded by the borrower. Interest rates for first TD Bank loans are subject to normal bank commercial rates and terms, and the second TD CDC loans are fixed for the life of the loans based on certain indices.
SBA EZ loans are C&I loans that are unsecured term loans extended for business purposes. These loans are below $500 thousand and are processed based on the Company’s credit scoring program.
Our SBA loans are originated through our SBA loan department, our SBA loan production offices, or referred through our branch network. All of our SBA loans are originated through our SBA loan departments and certain loan production offices. The SBA loan departments are staffed by loan officers who provide assistance to qualified businesses. The Bank has been designated as an SBA Preferred Lender, which is the highest designation awarded by the SBA. This designation generally facilitates a more efficient marketing and approval process for SBA loans. We have attained SBA Preferred Lender status nationwide.
Consumer and Other Loans
Our consumer loans primarily consist of single-family mortgages; we also offer home equity, credit card loans, and personal loans. Our single-family mortgages are secured by a first deed of trust on single family residences under a variety of loan products including fixed-rate and adjustable-rate mortgages with either 30-year or 15-year terms. Adjustable rate mortgage loans are also offered with flexible initial and periodic adjustments ranging from five to seven years.
5



Investing Activities
The main objective of our investment portfolio is to provide a source of on-balance sheet liquidity while providing a means to manage our interest rate risk, generating an adequate level of interest income without taking undue risks. Subject to various restrictions, our investment policy permits investment in various types of securities, certificates of deposit (“CDs”), and federal funds sold. Our investments include equity investments, and available for sale and held to maturity investment portfolios, which consist of U.S. Treasury securities, government sponsored agency bonds, mortgage-backed securities, collateralized mortgage obligations (“CMOs”), asset-backed securities, corporate securities, and municipal securities. For a detailed breakdown of our investments, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition – Investment Securities Portfolio.”
Our securities are classified for accounting purposes as equity investments, investments available for sale (“AFS”) or investments held to maturity (“HTM”). Securities purchased to meet investment-related objectives, such as liquidity management or interest rate risk, and which may be sold as necessary to implement management strategies, are designated as AFS at the time of purchase. Investment securities that the Bank has the positive intent and ability to hold to maturity are designated as investments HTM.
Deposit Activities
We attract both short-term and long-term deposits from the general public by offering a wide range of deposit products and services. Through our branch network, we provide our banking customers with personal and business checking accounts, money market accounts, savings accounts, time deposit accounts, individual retirement accounts, 24-hour ATMs, internet banking and bill-pay, remote deposit capture, lock boxes, and ACH origination services. In addition to our consumer and commercial deposits, we obtain both secured and unsecured wholesale deposits, including public deposits such as State of California Treasurer’s time deposits; brokered demand deposits, money market, and time deposits, as well as deposits gathered from outside of the Bank’s normal market area through deposit listing services and our online banking platform.
FDIC-insured deposits are our primary source of funds. As part of our asset-liability management, we analyze our customer and wholesale deposit maturities and interest rates to monitor and manage our cost of funds, to the extent feasible in the context of changing market conditions, as well as to promote stability in our supply of funds. For additional information on deposits, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition – Deposits.”
Borrowing Activities
When we have more funds than required for our reserve requirements or short-term liquidity needs, we may sell federal funds to other financial institutions. Conversely, when we have less funds than required, we may borrow funds from the Federal Home Loan Bank of San Francisco (the “FHLB”), the Federal Reserve Bank of San Francisco (“the Federal Reserve Bank”), or from our correspondent banking relationships. In addition, we may borrow from the FHLB on a longer term basis to provide funding for certain loan or investment securities strategies, as well as asset-liability management strategies.
The FHLB functions in a reserve credit capacity for qualifying financial institutions. As a member, we are required to own capital stock in the FHLB and may apply for advances from the FHLB on an unsecured basis or by utilizing qualifying loans and certain securities as collateral. The FHLB offers a full range of borrowing programs on its advances, with terms ranging from one day to thirty years, at competitive market rates. A prepayment penalty is usually imposed for early repayment of these advances. Information concerning FHLB advances and other borrowings is included in Note 9 of our Notes to Consolidated Financial Statements.
We may also borrow from the Federal Reserve Bank’s discount window and Bank Term Funding Program (“BTFP”). The maximum amount that we may borrow from the Federal Reserve Bank’s discount window is up to 99% of the estimated fair value of qualifying loans and securities that we pledge. The BTFP, which was introduced in March 2023 and will cease making new advances in March 2024, allows institutions to pledge certain securities at par value and borrow at a rate no lower than the interest rate on reserve balances in effect on the day the loan is made.
6



Long-Term Debt
At December 31, 2023, we had nine wholly-owned subsidiary grantor trusts (“Trusts”) that have issued $126.0 million of pooled trust preferred securities (“Trust Preferred Securities”). The Trust Preferred Securities accrue and pay distributions periodically at specified annual rates as provided in the related indentures for the securities. The Trusts used the net proceeds from the offering of the Trust Preferred Securities to purchase a like amount of subordinated debentures of Hope Bancorp (the “Debentures”). The Debentures are the sole assets of the trusts. Our obligations under the Debentures and related documents, taken together, constitute a full and unconditional guarantee by us of the obligations of the Trusts. The Trust Preferred Securities are mandatorily redeemable upon the maturity of the Debentures (which have maturity dates ranging from 2033 to 2037), or upon earlier redemption as provided in the indentures. We have the right to redeem the Debentures in whole (but not in part) on a quarterly basis at a specified redemption price. We also have the right to defer interest on the Debentures for up to five years.
In 2018, we issued $217.5 million aggregate principal amount of 2.00% convertible senior notes maturing on May 15, 2038, in a private offering to investors. The convertible notes were issued as part of our plan to repurchase shares of our common stock. On May 15, 2023, most holders of our convertible notes exercised their right to put their notes and therefore we paid off $197.1 million of convertible note principal in cash. In addition, we repurchased our notes in the aggregate principal amount of $19.9 million in 2023, and the repurchased notes were immediately cancelled subsequent to repurchase. The remaining net carrying balance of convertible notes at December 31, 2023, was $444 thousand.
Market Area and Competition
As of December 31, 2023, we had 54 branches in the United States, predominantly in multi-ethnic communities. Of these, 29 were located in California, nine were located in New York and New Jersey; four were in Illinois; four were in Texas; two were in Virginia; four were in Washington; one was in Alabama, and one was in Georgia. We also had nine loan production offices located in California, Colorado, Florida, Georgia, Oregon, Texas, and Washington, as well as a representative office in Seoul, South Korea.
The banking and financial services industry generally, and in our market areas specifically, is highly competitive. The increasingly competitive environment is a result primarily of strong competition among community, regional and national banks; changes in regulations; changes in technology and product delivery systems, as well as consolidation among financial services companies. In addition, federal legislation may have the effect of further increasing the pace of consolidation within the financial services industry. See “Supervision and Regulation.”
We compete for loans, deposits, and customers with other commercial banks, savings and loan associations, securities and brokerage companies, mortgage companies, insurance companies, marketplace finance platforms, money market funds, credit unions, and other non-bank financial service providers. Many of these competitors are much larger in total assets and capitalization, have greater access to capital markets, are more widely recognized, have broader geographic scope, and offer a broader range of financial services than we do.
Economic Conditions, Government Policies and Legislation
Our profitability, like that of most depository institutions, depends, among other things, on interest rate differentials. In general, the difference between the interest expense on interest bearing liabilities, such as deposits, borrowings, or debt, and the interest income on our interest earning assets, such as loans we extend to our customers, securities held in our investment portfolio, and interest earning cash, as well as the level of noninterest bearing deposits, has a significant impact on our profitability. Interest rates are highly sensitive to many factors that are beyond our control, such as the economy, inflation, unemployment, consumer spending, and political changes and events. The impact that future changes in domestic and foreign economic and political conditions might have on our performance cannot be predicted.
Our business is also influenced by the monetary and fiscal policies of the federal government and the policies of regulatory agencies, particularly the Board of Governors of the Federal Reserve System (the “FRB”). The FRB implements national monetary policies (with objectives such as curbing inflation or preventing recession) through its open-market operations in U.S. government securities, by adjusting the required level of reserves for depository institutions subject to its reserve requirements, and by varying the targeted federal funds and discount rates applicable to borrowings by depository institutions. The actions of the FRB in these areas influence the growth of bank loans, investments, and deposits and also affect interest rates earned on interest earning assets and paid on interest bearing liabilities. The nature and impact on Hope Bancorp, and the Bank, of future changes in monetary and fiscal policies cannot be predicted.
7



From time to time, legislation and regulations are enacted or adopted which have the effect of increasing the cost of doing business, limiting or expanding permissible activities, or affecting the competitive balance between banks and other financial services providers. Proposals to change the laws and regulations governing the operations and taxation of banks, bank holding companies, financial holding companies, and other financial institutions and financial services providers are frequently made in the U.S. Congress, in state legislatures, and by various regulatory agencies. These proposals may result in changes in banking statutes and regulations and our operating environment in substantial and unpredictable ways. If enacted, such legislation could increase the cost of doing business, limit permissible activities, restrict our growth or expansionary activities, or affect the competitive balance among banks, savings associations, credit unions, and other financial institutions. We cannot predict whether any such potential legislation will be enacted, and if enacted, the effect that it, or any implementing regulations, would have on our financial condition or results of operations. See “Supervision and Regulation.”
Supervision and Regulation
General
Hope Bancorp and the Bank are subject to extensive regulation and supervision under state and federal banking laws. This regulatory framework covers substantially all of the business activities of Hope Bancorp and the Bank. In the exercise of their regulatory and supervisory authority, the bank regulatory agencies have emphasized capital planning and stress testing, liquidity management, enterprise risk management, corporate governance, anti-money laundering compliance, information technology adequacy, cybersecurity preparedness, vendor management, and fair lending and other consumer compliance obligations. The federal and state regulatory systems are intended primarily for the protection of depositors, customers, the FDIC deposit insurance fund (the “DIF”) and the banking system as a whole, rather than for the protection of our stockholders or other investors.
The following summarizes certain banking laws and regulations that apply to Hope Bancorp and the Bank. These descriptions of statutes and regulations and their possible effects do not purport to be complete descriptions of all of the provisions of those statutes and regulations and their possible effects on us, nor do they purport to identify every statute and regulation that may apply to us.
Bank Holding Company Regulation
Hope Bancorp is a registered bank holding company under the Bank Holding Company Act. As a bank holding company, Hope Bancorp is subject to regulation, supervision and regular examination by the FRB and is required to file periodic reports of its operations with the FRB and other such reports as the FRB may require.
Bank holding companies are required to maintain certain levels of capital (See “Capital Adequacy Requirements”) and must serve as a source of financial and managerial strength to subsidiary banks and commit resources as necessary to support each subsidiary bank. FRB regulations and polices limit the dividends a bank holding company may pay to its stockholders and the amount of its shares that it may repurchase (See “Dividends and Stock Repurchases”). FRB rules and policies also regulate provisions of certain bank holding company debt and the FRB may impose interest ceilings and reserve requirements on such debt and require prior approval to purchase or redeem debt securities in certain situations.
The FRB may require a bank holding company to terminate an activity or terminate control of or liquidate or divest certain subsidiaries, affiliates or investments if the FRB believes the activity or the control of the subsidiary or affiliate constitutes a significant risk to the financial safety, soundness or stability of any bank subsidiary. Under certain circumstances, the FRB could, for example, prohibit Hope Bancorp from paying dividends or repurchasing its common stock on the basis that doing would be an unsafe or unsound banking practice.
The activities in which a bank holding company may engage are limited to those activities determined by the FRB to be so closely related to banking or managing or controlling banks as to be a proper incident thereto. Bank holding companies that elect and retain “financial holding company” status pursuant to the Gramm-Leach-Bliley Act of 1999 (the “GLBA”) may also engage in broader securities, insurance, merchant banking and other activities that are determined to be “financial in nature” or are incidental or complementary to activities that are financial in nature. To elect and retain financial holding company status, a bank holding company and all depository institution subsidiaries of a bank holding company must be considered well capitalized and meet certain other requirements. Hope Bancorp has not elected financial holding company status and neither Hope Bancorp nor the Bank has engaged in any activities determined by the FRB to be financial in nature or incidental or complementary to activities that are financial in nature.
8



A bank holding company must seek approval from the FRB prior to acquiring all or substantially all of the assets of any bank or bank holding company or the ownership or control of voting shares of any bank or bank holding company if, after giving effect to such acquisition, it would own or control, directly or indirectly, more than 5 percent of a bank. Under the Bank Merger Act, the prior approval of the FDIC is required for the Bank to merge with another bank or purchase all or substantially all of the assets or assume any of the deposits of another FDIC-insured depository institution. Federal banking regulators review competition, management, financial, compliance and other factors when considering applications for these approvals. Similar California or other state banking agency approvals may also be required.
The Company is also a bank holding company within the meaning of Section 3700 of the California Financial Code. Therefore, the Company and its subsidiaries are subject to examination by, and may be required to file reports with, the California Department of Financial Protection and Innovation (the “DFPI”). DFPI approvals are also required for bank mergers and acquisitions.
Bank Regulation
The Bank is a California state-chartered bank whose deposit accounts are insured by the FDIC, up to applicable limits. As such, the Bank is subject to regulation, supervision and regular examination by the DFPI and the FDIC. The Bank is also subject to regulation, supervision and examination by the Consumer Finance Protection Bureau (“CFPB”) with respect to federal consumer financial laws. While the Bank is not a member of the FRB, the Bank is also subject to certain regulations of the FRB.
Federal and state laws and regulations applicable to banks regulate, among other things, the scope of their business, their investments, their reserves against deposits, lending activities, servicing and foreclosing on loans, borrowings, capital requirements, certain check-clearing activities, dividends, branching, and mergers and acquisitions. California banks are also subject to statutes and regulations including FRB Regulation O, Federal Reserve Act Sections 23A and 23B and Regulation W, which restrict or limit loans or extensions of credit to “insiders”, including officers, directors, and principal stockholders, and loans or extension of credit by banks to affiliates or purchases of assets from affiliates, including parent bank holding companies, except pursuant to certain exceptions and only on terms and conditions at least as favorable to those prevailing for comparable transactions with unaffiliated parties. The Dodd-Frank Wall Street Reform and Consumer Protection Action (the “Dodd-Frank Act”) expanded definitions and restrictions on transactions with affiliates and insiders under Sections 23A and 23B and also lending limits for derivative transactions, repurchase agreements, and securities lending and borrowing transactions.
Under the Federal Deposit Insurance Act (“FDI Act”) and the California Financial Code, California state chartered commercial banks may generally engage in any activity permissible for national banks. Therefore, the Bank may form subsidiaries to engage in the many so-called “closely related to banking” or “nonbanking” activities commonly conducted by national banks in operating subsidiaries or by subsidiaries of bank holding companies. Further, California state chartered banks may conduct certain financial activities permitted under GLBA in a “financial subsidiary” to the same extent as a national bank, provided the bank is and remains well-capitalized, well-managed and in satisfactory compliance with the Community Reinvestment Act (the “CRA”). The Bank currently conducts no non-banking or financial activities through subsidiaries.
Capital Adequacy Requirements
Hope Bancorp and the Bank are subject to similar regulatory capital requirements administered by its primary federal supervisory banking agencies. Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the federal banking agencies have adopted capital rules based on the Basel III Accord (the “Basel III Capital Rules”). The Basel III Capital Rules became effective on January 1, 2015. The Basel III Capital Rules are risk-based, meaning that the levels of capital required vary based on the perceived degree of risk associated with a banking organization’s balance sheet assets, such as loans and investment securities, and those recorded as off-balance sheet items, such as commitments, letters of credit, and recourse arrangements. The risk classifications and, therefore, the required capital amounts may be subject to qualitative judgments by regulators about components, risk-weighting, and other factors.
The Basel III Capital Rules (i) establish a capital measure called “common equity Tier 1 and a related regulatory capital ratio of common equity Tier 1 to risk‑weighted assets, (ii) specify that Tier 1 capital consists of common equity Tier 1 and “additional Tier 1 capital” instruments meeting certain requirements, (iii) mandate that most deductions and adjustments to regulatory capital measures be made to common equity Tier 1 and not to the other components of capital, and (iv) specify deductions from and adjustments to capital that are somewhat more expansive than those under prior capital rules. The Basel III Capital Rules differ from earlier capital rules by excluding from Tier 1 capital trust preferred securities (subject to certain grandfathering exceptions for organizations like Hope Bancorp, which had less than $15 billion in assets as of December 31, 2009), mortgage servicing rights and certain deferred tax assets and to include unrealized gains and losses on available for sale debt and equity securities (unless the organization opts out of including such unrealized gains and losses).
9



Under the Basel III Capital Rules, the minimum capital ratios applicable to Hope Bancorp and the Bank are as follows:
4.5% common equity Tier 1 to risk‑weighted assets;
6.0% Tier 1 capital (that is, common equity Tier 1 plus additional Tier 1 capital) to risk‑weighted assets;
8.0% total capital (that is, Tier 1 capital plus Tier 2 capital) to risk‑weighted assets; and
4.0% Tier 1 capital to average consolidated assets as reported on regulatory financial statements (known as the “leverage ratio”). To be considered well-capitalized under the Prompt Corrective Action framework, the Bank must maintain a minimum Tier 1 leverage ratio of at least 5.0%.
The Basel III Capital Rules include an additional “capital conservation buffer” of 2.5% of risk-weighted assets above the regulatory minimum capital ratios. If Hope Bancorp and the Bank do not maintain capital sufficient to satisfy the capital conservation buffer, we would face restrictions in our ability to pay dividends, repurchase shares, and pay discretionary bonuses.
Including the capital conservation buffer of 2.5%, the minimum ratios for a banking organization are as follows: (i) a common equity Tier 1 capital ratio of 7.0%, (ii) a Tier 1 capital ratio of 8.5% and (iii) a total capital ratio of 10.5%. Management believes that as of December 31, 2023, Hope Bancorp and the Bank met all requirements under the Basel III Capital Rules applicable to them on a fully phased-in basis, including the capital conservation buffer. At December 31, 2023, the ratios of each of Hope Bancorp and the Bank exceeded the minimum percentage requirements to generally be deemed “well-capitalized” for bank regulatory purposes and satisfied the capital conservation buffer requirement. See Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
While the Basel III Capital Rules set higher regulatory capital standards for Hope Bancorp and the Bank, bank regulators may also continue their past policies of expecting banks to maintain capital in excess of the minimum requirements. The implementation of the Basel III Capital Rules or more stringent requirements to maintain higher levels of capital or to maintain higher levels of liquid assets could adversely impact the Company’s net income and return on equity, restrict the ability to pay dividends or executive bonuses and require the raising of additional capital.
The Bank is also subject to capital adequacy requirements under the California Financial Code.
See Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Increased Supervision and Regulation for Bank Holding Companies with Consolidated Assets of More than $10 Billion
As a banking organization with consolidated assets exceeding $10 billion, the Company is subject to heightened supervision and regulation imposed by the Dodd-Frank Act, such as the following:
We are subject to periodic examination by the CFPB with respect to compliance with federal consumer financial laws. Although we were previously subject to regulations issued by the CFPB, the Bank’s primary federal regulator, the FDIC, previously had responsibility for our consumer compliance examinations. See “Consumer Finance Protection Bureau.”
We are subject to the maximum permissible interchange fee for swipe transactions, equal to no more than 21 cents plus 5 basis points of the transaction value for many types of debit interchange transactions.
We calculate our FDIC deposit assessment base using a performance score and a loss-severity score system described below in “Deposit Insurance.”
We are subject to the “Volcker Rule,” which generally restricts us from engaging in activities that are considered proprietary trading and from sponsoring or investing in certain entities, including hedge or private equity funds that are considered covered funds. While Hope Bancorp and the Bank had no investment positions or relationships at December 31, 2023, that were subject to the Volcker Rule, we may be subject to the compliance and recording keeping provisions of this rule.
The Dodd-Frank Act requires banking organizations with consolidated assets exceeding $10 billion to establish board-level risk committees and to perform annual stress tests. The Economic Growth, Regulatory Relief, and Consumer Protection Act enacted in 2018 raises the asset thresholds for these requirements to $50 billion and $100 billion, respectively.
Many aspects of the Dodd-Frank Act continue to be subject to rule-making or proposed change, making it difficult to anticipate the overall financial impact on the Company, its customers or the financial industry in general. Provisions in the legislation that affect deposit insurance assessments, payment of interest on demand deposits and interchange fees could increase the costs associated with deposits as well as place limitations on certain revenues those deposits may generate.
10



Prompt Corrective Action
The FDI Act requires the federal bank regulatory agencies to take “prompt corrective action” with respect to a depository institution that does not meet certain capital adequacy standards, including requiring the prompt submission of an acceptable capital restoration plan. Depending on the bank’s capital ratios, the agencies’ regulations define five categories in which an insured depository institution will be placed: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. At each successive lower capital category, an insured bank is subject to more restrictions, including restrictions on the bank’s activities, operational practices, ability to accept, renew or rollover brokered deposits, and to pay dividends or executive bonuses.
The prompt corrective action standards conform with the Basel III Capital Rules. In order to be generally considered well-capitalized for bank regulatory purposes, the Bank is required maintain the following minimum capital ratios: a common equity Tier 1 ratio of 6.5%, a Tier 1 ratio of 8%, a total capital ratio of 10% and a leverage ratio of 5%. A bank meeting the minimum capital ratios required to be considered well-capitalized, adequately capitalized, or undercapitalized may, however, may be treated as though it were in the next lower capital category if the appropriate federal banking agency, after notice and opportunity for hearing, determines that an unsafe or unsound condition or practice warrants such treatment.
The federal banking agencies also may require banks and bank holding companies subject to enforcement actions to maintain capital ratios in excess of the minimum ratios otherwise generally required to be deemed well capitalized for bank regulatory purposes, in which case institutions may no longer be deemed to be well capitalized and may therefore be subject to certain restrictions such as on taking brokered deposits.
Consumer Compliance Laws
The Bank must comply with numerous federal and state consumer protection statutes and implementing regulations, including, but not limited to, the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, the Truth in Lending Act, the Fair Housing Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the National Flood Insurance Act, the California Homeowner Bill of Rights and various federal and state privacy protection laws, including the Telephone Consumer Protection Act, and CAN-SPAM Act. The Bank and Hope Bancorp are also subject to federal and state laws prohibiting unfair or fraudulent business practices, untrue or misleading advertising and unfair competition.
These laws and regulations mandate certain disclosure and reporting requirements and regulate the manner in which financial institutions must deal with customers when taking deposits, making loans, servicing, collecting and foreclosure of loans, and providing other services. Failure to comply with these laws and regulations can subject the Bank to various penalties, including but not limited to enforcement actions, injunctions, fines or criminal penalties, punitive damages to consumers, and the loss of certain contractual rights.
Community Reinvestment Act
The Bank is subject to the CRA, which requires federal banking regulators to evaluate the record of a financial institution in meeting the credit needs of its local communities, including low and moderate income neighborhoods. The federal banking agencies consider a financial institution’s compliance with the CRA into account when considering regulatory applications for mergers and other expansionary activities. The Bank received a “Satisfactory” rating in the most recent public disclosure of CRA performance evaluation released by the FDIC in 2021, which states that the Bank’s CRA performance under the lending, investment, and service tests supports the overall rating.
On October 24, 2023, the federal banking regulators issued new CRA rules intended to adapt to changes in the banking industry, including the expanded role of mobile and online banking, and to tailor performance standards to account for differences in bank size and business models. The new rule also includes data collection and reporting requirements, some of which are applicable only to banks with over $10 billion in assets. Most provisions of the final rule will become effective on January 1, 2026, and the data reporting requirements will become effective on January 1, 2027.
USA PATRIOT Act and Anti-Money Laundering Laws
Under the USA PATRIOT Act of 2001, financial institutions are subject to prohibitions against specified financial transactions and account relationships, as well as enhanced due diligence standards that are intended to prevent and detect the use of the United States financial system for money laundering and terrorist financing activities. The act requires financial institutions, including banks, to establish anti-money laundering programs, including employee training and independent audit requirements, meet minimum standards specified by the act, follow minimum standards for customer identification and maintenance of customer identification records, and regularly compare customer lists against lists of suspected terrorists, terrorist organizations and money launderers.
11



The Bank Secrecy Act (the “BSA”) establishes requirements for recordkeeping and reporting by banks and other financial institutions that are intended to help identify the source, volume and movement of currency and other monetary instruments into and out of the United States in order to help detect and prevent money laundering connected with drug trafficking, terrorism and other criminal activities. Under the BSA and related regulations, banking institutions must file suspicious activity reports and maintain programs designed to assure and monitor compliance with certain recordkeeping and reporting requirements regarding currency transactions. The programs must include systems and internal controls to assure ongoing compliance, provide for independent testing of such systems and compliance and provide appropriate personnel training.
The Anti-Money Laundering Act of 2020 (“AMLA”), which amends the BSA, was enacted in January 2021. The AMLA is intended to be a comprehensive reform and modernization to U.S. bank secrecy and anti-money laundering laws. Among other things, it codifies a risk-based approach to anti-money laundering compliance for financial institutions; requires the development of standards for evaluating technology and internal processes for BSA compliance; expands enforcement- and investigation-related authority, including increasing available sanctions for certain BSA violations and instituting whistleblower incentives and protections.
The federal banking agencies consider a financial institution’s effectiveness in combating money laundering when considering regulatory applications for mergers and other expansionary activities.
Loans to One Borrower
Under California law, the Bank’s ability to make aggregate secured and unsecured loans to borrower is limited to 25% and 15%, respectively, of the Bank’s unimpaired capital and surplus. The Bank has established internal loan limits that are lower than the legal lending limits for a California bank.
Deposit Insurance
The FDIC is an independent federal agency that insures deposits, up to prescribed statutory limits, of federally insured banks and savings institutions, and safeguards the safety and soundness of the depository institutions. The FDIC insures our customer deposits through the DIF up to prescribed limits, currently $250 thousand per customer. The FDIC may terminate a depository institution’s deposit insurance upon a finding that the institution’s financial condition is unsafe or unsound, or that the institution has engaged in unsafe or unsound practices that pose a risk to the DIF or that may prejudice the interest of the bank’s depositors. The termination of the Bank’s deposit insurance would result in the revocation of the Bank’s charter by the DFPI.
We are generally unable to control the amount of assessments that we pay for FDIC insurance, which can be affected by the cost of bank failures to the FDIC, among other factors. The Dodd-Frank Act revised the FDIC’s DIF management authority by setting requirements for the Designated Reserve Ratio (the DIF balance divided by estimated insured deposits) and redefining the assessment base which is used to calculate banks’ quarterly assessments. The amount of FDIC assessments paid by each DIF member institution is based on its asset size and its relative risk of default as measured by regulatory capital ratios and other supervisory factors.
In November 2023, the FDIC approved a special assessment at the rate of approximately 13.4 basis points per year, to be paid in eight quarterly installments beginning in the first quarter of 2024. This rate will be applied to an assessment base of the insured depository institution’s estimated uninsured deposits reported as of December 31, 2022, adjusted to exclude the first $5 billion in estimated uninsured deposits. We recorded an expense of $4.0 million in 2023 for the estimated total amount due under this special assessment.
Any future changes in FDIC insurance assessments may have a material and adverse effect on our earnings and could have a material adverse effect on the value of, or market for, our common stock.
Safety and Soundness Standards; Regulatory Enforcement Authority
The federal and California bank regulatory agencies have extensive discretion in connection with their supervisory and enforcement activities and examination policies, including policies with respect to the classification of assets and the establishment of appropriate loan loss reserves for regulatory purposes. The federal bank regulatory agencies have adopted guidelines to assist in identifying and addressing potential safety and soundness concerns before an institution’s capital becomes impaired. The guidelines establish operational and managerial standards generally relating to: (1) internal controls, information systems, and internal audit systems; (2) loan documentation; (3) credit underwriting; (4) interest-rate exposure; (5) asset growth and asset quality; and (6) compensation, fees, and benefits. Further, the regulatory agencies have adopted safety and soundness guidelines for asset quality and for evaluating and monitoring earnings to ensure that earnings are sufficient for the maintenance of adequate capital and reserves.
12



If the FRB, the FDIC or the DFPI should determine that the financial condition, capital resources, asset quality, earnings prospects, management, liquidity, or other aspects of the Company’s or the Bank’s operations are unsatisfactory or that the Company or the Bank or management is violating or has violated any law or regulation, these agencies have the authority to:
Require affirmative action to correct any conditions resulting from any violation or practice;
Direct an increase in capital and the maintenance of higher specific minimum capital ratios, which could preclude Hope Bancorp or the Bank from being deemed well capitalized which, in the case of the Bank, would restrict its ability to accept certain brokered deposits, for example;
Restrict Hope Bancorp’s or the Bank’s growth geographically, by products or services, or by mergers and acquisitions;
Enter into or issue informal or formal enforcement actions, including required board resolutions, memoranda of understanding, written agreements and consent or cease and desist orders or prompt corrective action orders to take corrective action and cease unsafe and unsound practices;
Assess civil money penalties;
Require prior approval of senior executive officer or director changes; remove officers and directors and assess civil monetary penalties; and
Terminate FDIC insurance, revoke the charter and/or take possession of and close and liquidate the Bank or appoint the FDIC as receiver.
Dividends and Stock Repurchases
Hope Bancorp’s ability to pay dividends or repurchase shares of its common stock is subject to restrictions set forth in the Delaware General Corporation Law. The Delaware General Corporation Law provides that a Delaware corporation may pay dividends or repurchase its shares either (i) out of the corporation’s surplus (as defined by Delaware law), or (ii) if there is no surplus, out of the corporation’s net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. It is the FRB’s policy, however, that bank holding companies should generally pay dividends on common stock only out of income available over the previous four quarters, and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition. FRB policy requires that a bank holding company must notify the FRB if its dividends or repurchase or redemption of shares would cause a net reduction in the amount of such capital instrument outstanding at the beginning of the quarter in which the redemption or repurchase occurs. It is also the FRB’s policy that bank holding companies should not maintain dividend levels or repurchase shares in amounts that would undermine their ability to be a source of strength to its banking subsidiaries. The FRB also discourages dividend payment ratios that are at maximum allowable levels unless both asset quality and capital are very strong. In addition, if Hope Bancorp does not maintain an adequate capital conservation buffer under the Basel III Capital Rules, its ability to pay dividends to or repurchase shares from stockholders may be restricted.
The Bank is a legal entity that is separate and distinct from Hope Bancorp. Hope Bancorp depends on the Bank’s payment of dividends as its primary source of cash for use in Hope Bancorp’s operations, Hope Bancorp’s payment of dividends to stockholders and Hope Bancorp’s stock repurchases. The Bank’s ability to pay dividends to Hope Bancorp is subject to provisions of the California Financial Code that limit the amount available for cash dividends to the lesser of a bank’s retained earnings or net income for its last three fiscal years (less any distributions to stockholders made during such period). Where the above test is not met, cash dividends may still be paid, with the prior approval of the DFPI, in an amount not exceeding the greatest of (1) retained earnings of the Bank; (2) the net income of the Bank for its last fiscal year; or (3) the net income of the Bank for its current fiscal year. The Bank’s ability to pay cash dividends to Hope Bancorp will also depend upon management’s assessment of future capital requirements, contractual restrictions, and other factors. In addition, if the Bank does not maintain an adequate capital conservation buffer under the Basel III Capital Rules, the Bank may face restrictions on its ability to pay dividends to Hope Bancorp.
Consumer Financial Protection Bureau
The Dodd-Frank Act created the CFPB as an independent entity within the FRB with broad rulemaking, supervisory and enforcement authority over consumer financial products and services, including deposit products, residential mortgages, home-equity loans and credit cards. The CFPB’s functions include investigating consumer complaints, conducting market research, rulemaking, supervising and examining bank consumer transactions, and enforcing rules related to consumer financial products and services. CFPB regulations and guidance apply to all financial institutions and banks with $10 billion or more in assets are subject to examination by the CFPB. The Bank is subject to examination by the CFPB. The CFPB has the authority to bring formal and informal enforcement actions against the Bank similar to those that may be brought by the federal banking regulators discussed above.
13



In 2014, the CFPB adopted revisions to Regulation Z, which implements the Truth in Lending Act, pursuant to the Dodd-Frank Act, and apply to consumer mortgages. The revisions mandate specific underwriting criteria for home loans in order for creditors to make a reasonable, good faith determination of a consumer’s ability to repay and establish certain protections from liability under the requirements for “qualified mortgages” that meet certain specific standards. As required by the Dodd-Frank Act, the CFPB also promulgated TILA-RESPA Integrated Disclosure rules which became effective in 2015 and require new mortgage disclosures.
Human Capital Resources
It is our philosophy to attract, develop, and retain a diverse range of qualified bankers who share our values, entrepreneurial spirit and unwavering commitment to service. The Company respects, values, and invites diversity in our team members, customers, suppliers, marketplace, and community. We seek to recognize the unique contribution each individual brings to our Company, and we are fully committed to supporting a rich culture of diversity as a cornerstone to our success.
Retaining a culture of diversity and inclusion requires active engagement and motivation. Through our social rewards and recognition platform, called Bucketlist, employees recognize one another for milestones and achievements, or simply express gratitude to anyone within the Bank for demonstrating Bank of Hope Core Values of integrity, teamwork, fairness, initiative, transparency and satisfaction.
We provide professional development opportunities to team members and seek to improve retention, development, and job satisfaction of team members from diverse groups by providing career skills training, mentoring, and tuition fee reimbursements to support job-related higher education. All employees of Bank of Hope are required to undergo various training courses on a quarterly basis to promote their ongoing growth and professional development as bankers. Training courses focus on compliance, banking regulations, information security, cybersecurity, and workplace safety, among others, as well as business code and ethics topics, including confidentiality, and our whistle blower, anti-harassment, and conflict of interest policies.
We offer a leading compensation and benefits package that includes medical, dental and vision healthcare, 401(k) benefits, parental and family leave, holiday and paid time off, and tuition assistance. We are committed to the long-term health of our employees and provide basic life, basic accidental death and dismemberment (AD&D) and long-term disability insurance, Flexible Spending Accounts (FSA), and discounted gym memberships, among others. Our benefits package also features value-added services focused on our employees’ well-being and mental health, including survivor assurance programs, financial wellness counseling, and mental wellness counseling.
As of December 31, 2023, we had 1,244 full-time equivalent employees compared with 1,549 full-time equivalent employees at December 31, 2022. In the third quarter of 2023, the Company announced a strategic reorganization that is expected to generate cost savings through increased efficiencies that include branch consolidations and reduced staffing. None of our employees are represented by a union or covered by a collective bargaining agreement. Management believes that its relations with its employees are good.
Throughout our history, diversity has been a key competitive advantage for Bank of Hope. Building a culture of inclusion and high performance has been a growing focus of management and an essential element of our long-term success. As of December 31, 2023, women accounted for 64% of our total workforce and represented 32% of our associates with positions of senior vice president and above. We strive to attract, develop, and retain a diverse range of qualified bankers who share our values, entrepreneurial spirit and unwavering commitment to service.
Our employees actively share their talents in their communities through volunteer activities in education, economic development, human and health services, and community reinvestment. Our employees are committed to be good neighbors that foster growth for our customers and communities. As a community-based bank, we are committed to being model corporate citizens and through our communities through various forms of investments, contributions, and volunteer work.
14



Some of the highlights we have taken to be a socially responsible company are:
Approximately 43% of the Bank’s branches are located in low-to-moderate income areas;
Our employees had nearly 1,600 hours of CRA-reportable volunteer hours in 2023;
We funded approximately $1.70 billion of loans in 2023;
We invest in affordable housing partnership investments, CRA investments, and CDFI investments;
We had approximately 616 reportable small business loans totaling to $205.3 million of CRA-reportable small business lending in 2023 with 538 small business loans within the Bank’s assessment areas for $172.6 million;
We had approximately $620 thousand in charitable donations and grants to 160 organizations to support the social, educational and cultural wellness of the communities in which we operate; and
We awarded 60 students grants of $2,500 each in 2023. In aggregate, we contributed approximately more than $2.8 million to the Hope Scholarship Foundation since its establishment in 2001.
In 2022, we launched and published our initial Environmental, Social and Governance (“ESG”) report and webpage in our investor relation website (www.ir-hopebancorp.com). The ESG report contains our ESG progress including the establishment of an ESG framework, ESG policy, and our achievements on ESG compliance.
15



Item 1A.RISK FACTORS
In the course of conducting our business operations, we are exposed to a variety of risks, some of which are inherent in the financial services industry and others of which are more specific to our own business. The following discussion addresses the most significant risks that could affect our business, financial condition, liquidity, results of operations, and capital position. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business. If any of these known or unknown risks or uncertainties actually occurs, our business, financial condition and results of operations may be materially and adversely effected. In that event, the market price for our common stock would likely decline.
Risks Related to our Business
Economic conditions in the markets in which we operate may adversely affect our loan portfolio and reduce the demand for our services. Adverse economic conditions in our market areas could potentially have a material adverse impact on the quality of our business. An economic slowdown in the markets in which we operate, or may do so in the future may have any or all of the following consequences, any of which may reduce our net income and adversely affect our financial condition:
loan delinquencies may increase;
problem assets and foreclosures may increase;
the level and duration of deposits may decline;
demand for our products and services may decline; and
collateral for loans may decline in value below the principal amount owed by the borrower.
We have a high level of loans secured by real estate collateral. A downturn in the real estate market may seriously impair our loan portfolio. As of December 31, 2023, approximately 64% of our loan portfolio consisted of loans secured by various types of commercial real estate (excluding 1-4 family residential mortgage loans). A slowdown in the economy is often accompanied by declines in the value of real estate, which may have a material and adverse effect on our net income and capital levels.
Our commercial loan and commercial real estate loan portfolios expose us to risks. Charge-offs on commercial and commercial real estate loans may be larger on a per loan basis than those incurred with our residential or consumer loan portfolios. The payment experience on commercial real estate loans that are secured by income producing properties are typically dependent on the successful operation of the related property tenants and thus, may subject us to adverse conditions in the real estate market or to the general economy. The collateral securing these loans typically cannot be liquidated as easily as residential real estate. If we foreclose on these loans, our holding period for the collateral typically is longer than residential properties because there are fewer potential purchasers of the collateral.
Unexpected deterioration in the credit quality of our commercial or commercial real estate loan portfolios would require us to increase our provision for credit losses, which would reduce our profitability and could materially adversely affect our business, financial condition, results of operations and prospects.
In addition, with respect to commercial real estate loans, federal and state banking regulators have expressed concerns about weakness in the commercial real estate market. As a result, banking regulators are examining commercial real estate lending activity with heightened scrutiny and may require banks with higher levels of commercial real estate loans to implement more stringent underwriting, internal controls, risk management policies and portfolio stress testing, as well as possibly higher levels of allowances for losses and capital levels as a result of commercial real estate lending growth and exposures. Because a significant portion of our loan portfolio is comprised of commercial real estate loans, the banking regulators may require us to maintain higher levels of capital than we would otherwise be expected to maintain, which could limit our ability to leverage our capital and have a material adverse effect on our business, financial condition, results of operations and prospects.

16



Our allowance for credit losses may not cover our actual loan losses. As a lender, we are exposed to the risk that the principal of, or interest on, a loan will not be paid timely or at all or that the value of any collateral supporting a loan will be insufficient to cover our outstanding exposure. In accordance with U.S. GAAP, we maintain an allowance for credit losses to provide for loan defaults and non-performance. If our actual credit losses exceed the amount we have allocated for estimated current expected credit losses, our business will be adversely affected. We attempt to limit the risk that borrowers will fail to repay loans by carefully underwriting our loans, but losses nevertheless occur in the ordinary course of business operations. We create allowances for estimated credit losses through provisions that are recorded as reductions in income in our accounting records. We base these allowances on estimates of the following:
historical experience with our loans;
evaluation of current economic conditions and other factors;
reviews of the quality, mix and size of the overall loan portfolio;
reviews of delinquencies; and
the quality of the collateral underlying our loans.
If our allowance estimates are inadequate, we may incur losses, our financial condition may be materially and adversely affected and we may be required to try and raise additional capital to enhance our capital position. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the adequacy of our allowance. These agencies may require us to establish additional allowances based on their judgment of the information available at the time of their examinations. No assurance can be given that we will not sustain loan losses in excess of present or future levels of the allowance for credit losses or that regulatory agencies will not require us to increase our allowance thereby impacting our profitability.
An increase in nonperforming assets would reduce our income and increase our expenses. If the level of nonperforming assets increases in the future, it may adversely affect our operating results and financial condition. Nonperforming assets are mainly loans on which the borrowers are not making their required payments. Nonperforming assets also include loans that have been restructured to permit the borrower to make payments and real estate that has been acquired through foreclosure or deed in lieu of foreclosure of unpaid loans. To the extent that assets are nonperforming, we would have a lower balance of earning assets generating interest income and an increase in credit related expenses, including provisions for credit losses.
Increases in the level of our problem assets, occurrence of operating losses or a failure to comply with requirements of the agencies which regulate us may result in regulatory actions against us which may materially and adversely affect our business and the market price of our common stock. The DFPI, the FDIC, and the FRB each have authority to take actions to require that we comply with applicable regulatory capital requirements, cease engaging in what they perceive to be unsafe or unsound practices or make other changes in our business. Among others, the corrective measures that such regulatory authorities may take include requiring us to enter into informal or formal agreements regarding our operations, the issuance of cease and desist orders to refrain from engaging in unsafe and unsound practices, removal of officers and directors and the assessment of civil monetary penalties. See Item 1 “Business – Supervision and Regulation” for a further description of such regulatory powers.
Our use of appraisals in deciding whether to make loans secured by real property does not ensure that the value of the real property collateral will be sufficient to repay our loans. In considering whether to make a loan secured by real property, we require an appraisal of the property. However, an appraisal is only an estimate of the value of the property at the time the appraisal is made and requires the exercise of a considerable degree of judgment. If the appraisal does not accurately reflect the amount that may be obtained upon sale or foreclosure of the property, whether due to a decline in property value after the date of the original appraisal or defective preparation of the appraisal, we may not realize an amount equal to the indebtedness secured by the property and as a result, we may suffer losses.
Changes in interest rates affect our profitability. The interest rate risk inherent in our lending, investing, and deposit taking activities is a significant market risk to us and our business. We derive our income mainly from the difference or “spread” between the interest earned on loans, securities and other interest earning assets, and interest paid on deposits, borrowings and other interest bearing liabilities. In general, the wider the spread, the more net interest income we earn. When market rates of interest change, the interest we receive on our assets and the interest we pay on our liabilities will fluctuate. This can cause decreases in our spread and can greatly affect our income. In addition, interest rate fluctuations can affect how much money we may be able to lend. There can be no assurance that we will be successful in minimizing the potentially adverse effects of changes in interest rates.
17



If we lose key employees, our business may suffer. There is intense competition for experienced and highly qualified personnel in the banking industry. Our future success depends on the continued employment of existing senior management personnel. If we lose key employees temporarily or permanently, it may hurt our business. We may be particularly hurt if our key employees, including any of our executive officers, became employed by our direct competitors.
We are exposed to the risks of natural disasters. A significant portion of our operations are concentrated in Southern California, which is an earthquake and fire prone region. A major earthquake or fire may result in material loss to us. A significant percentage of our loans are and will be secured by real estate. Many of our borrowers may suffer uninsured property damage, experience interruption of their businesses or lose their jobs after an earthquake or fire. Those borrowers might not be able to repay their loans, and the collateral for such loans may decline significantly in value. Unlike a bank with operations that are more geographically diversified, we are vulnerable to greater losses if an earthquake, fire, flood, mudslide or other natural catastrophe occurs in Southern California.
We may experience adverse effects from acquisitions. We have acquired other banking companies and bank offices in the past, and will consider additional acquisitions as opportunities arise. If we do not adequately address the financial and operational risks associated with acquisitions of other companies, we may incur material unexpected costs and disruption of our business. Future acquisitions may increase the degree of such risks.
Risks involved in acquisitions of other companies include:
the risk of failure to adequately evaluate the asset quality of the acquired company;
difficulty in assimilating the operations, technology and personnel of the acquired company;
diversion of management’s attention from other important business activities;
difficulty in maintaining good relations with the loan and deposit customers of the acquired company;
inability to maintain uniform and effective operating standards, controls, procedures and policies;
potentially dilutive issuances of equity securities or the incurrence of debt and contingent liabilities; and
amortization of expenses related to acquired intangible assets that have finite lives.
Liquidity risks may impair our ability to fund operations and jeopardize our financial condition. Liquidity is essential to our business. An inability to raise funds through deposits, borrowings, the sale of loans, and other sources may have a material adverse effect on our liquidity. Our access to funding sources in amounts adequate to finance our activities may be impaired by factors that affect us specifically or the financial services industry in general. Factors that may detrimentally impact our access to liquidity sources include a decrease in the level of our business activity due to a market downturn or adverse regulatory action against us. Our ability to acquire deposits or borrow may also be impaired by factors that are not specific to us, such as a disruption of the financial markets or negative views and expectations about the prospects for the banking industry or the general financial services industry as a whole.
Fraudulent activity or breaches or failures of our information system controls, including those related to cybersecurity incidents, could have a material adverse effect on our business. As a financial institution, we are susceptible to fraudulent activity and security breaches, including those related to cybersecurity incidents, that may materially and adversely affect us or our clients or our third-party service providers. Fraudulent activity may take many forms, including check fraud, electronic fraud, wire fraud, phishing, social engineering, and other dishonest acts. Information system breaches and other cybersecurity threats may include fraudulent or unauthorized access to systems used by us or our clients, denial or degradation of service attacks, and ransomware or other cyber-attacks. There continues to be a rise in electronic fraudulent activity, security breaches, and cyber-attacks within the financial services industry, especially in the commercial banking sector due to cyber criminals targeting commercial bank accounts. Consistent with industry trends, we have also experienced an increase in attempted electronic fraudulent activity and information system breaches in recent periods.
18



As a financial institution, we receive and maintain the business and personal information of our customers on a daily basis. Information pertaining to us and our clients is maintained, and transactions are executed, on the networks and information systems owned or used by us, our clients and certain of our third-party service providers, such as our online banking or reporting systems. The secure maintenance and transmission of confidential information, as well as execution of transactions over these information systems, are essential to protect us and our clients against fraud and security breaches and to maintain our clients’ confidence. We face the risk that this information may be fraudulently or otherwise improperly accessed, used or disclosed in a cyber-attack or other security breach of the information systems we rely upon. Large corporations, including financial institutions and retail companies, have increasingly suffered major cybersecurity incidents relating to information system breaches, in some cases exposing not only confidential and proprietary corporate information, but also sensitive financial and other personal information of their customers and employees and subjecting them to potential fraudulent activity. In the ordinary course of our business, we have experienced and expect to continue to experience cyber-based attacks and other cybersecurity threats that may compromise our information systems, the consequences of which could be material and adverse.
Our inability to anticipate or adequately mitigate against fraudulent activity, cybersecurity incidents and other security breaches may result in financial losses, litigation, increased regulatory scrutiny or supervisory actions and/or damage to our reputation, any of which may be material.
We rely on technology and information systems that may be disrupted, which would pose operational risks. Our business depends on the continuous operation of our information and data processing systems and related operational infrastructure, some of which are provided by third party vendors. We rely on these systems for, among other things, communications, processing customer transactions, recordkeeping and financial controls. The failure of any of these resources, including but not limited to failures due to cybersecurity incidents, operational or systems failures, interruptions of client service operations or interruptions in third party data processing or other vendor support, may cause material disruptions in our business, impairment of customer relations, exposure to our customers for liability, reputational harm and action by bank regulatory authorities. Breaches of the information systems owned or used by us also may occur, and on occasion have occurred, through intentional or unintentional acts by those having access to our systems or our clients’ or counterparties’ confidential information, including employees. In addition, increases in criminal activity, and the levels and sophistication of the same, advances in computer capabilities, vulnerabilities in third-party technologies (including browsers and operating systems) and other developments could result in a compromise or breach of the technology, processes and controls that we use in the operation of our business, which could have a material and adverse effect on our business, results of operation and financial condition.
Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks. Companies are facing increasing scrutiny from customers, regulators, investors, investor advocacy groups, and other stakeholders related to their ESG practices and disclosure, especially as they relate to the environment, health and safety, diversity, labor conditions, and human rights. Increased ESG related compliance costs could result in increases to our overall operational costs. Failure to adapt to or comply with regulatory requirements or investor or stakeholder expectations and standards could negatively impact our reputation, ability to do business with certain partners, and our financial condition and results of operations. New government regulations could also result in new or more stringent forms of ESG oversight and expand mandatory and voluntary reporting, diligence, and disclosure. Additionally, concerns over the long-term impacts of climate change have led and could continue to lead to governmental efforts around the world to mitigate those impacts. Consumers and businesses also may change their behavior on their own as a result of these concerns. We, along with our customers, will need to respond to new laws and regulations as well as consumer and business preferences resulting from climate change concerns. We may also face cost increases, asset value reductions, and operating process changes, among other impacts. In addition, we could face reductions in creditworthiness on the part of some customers or in the value of assets securing loans.
Our business reputation is important and any damage to it may have a material adverse effect on our business. Our reputation is very important for our business, as we rely on our relationships with our current, former, and potential clients and stockholders in the communities we serve. Any damage to our reputation, whether arising from regulatory, supervisory or enforcement actions, matters affecting our financial reporting or compliance with SEC and exchange listing requirements, negative publicity, our conduct of our business or otherwise may have a material adverse effect on our business.
19



As we expand outside our traditional geographic markets, we may encounter additional risks that may adversely affect us. Currently, the majority of our offices are located in California, but we also have offices in the greater New York City, Chicago, Houston, Dallas, Tampa, and Seattle metropolitan areas, New Jersey, Virginia, Colorado, Georgia, and Alabama. Over time, we may seek to establish offices in other parts of the United States as well. We may encounter significant risks, including unfamiliarity with the characteristics and business dynamics of new markets, increased marketing and administrative expenses and operational difficulties arising from our efforts to attract business in new markets, manage operations in noncontiguous geographic markets, comply with local laws and regulations and effectively and consistently manage our non-California personnel and business. If we are unable to manage these risks, our operations may be materially and adversely affected.
Adverse conditions in South Korea or globally may adversely affect our business. A substantial number of our customers have economic and cultural ties to South Korea and, as a result, we are likely to feel the effects of adverse economic and political conditions there. If economic or political conditions in South Korea deteriorate, we may, among other things, be exposed to economic and transfer risk, and may experience an outflow of deposits by our customers with connections to South Korea. Transfer risk may result when an entity is unable to obtain the foreign exchange needed to meet its obligations or to provide liquidity. This may materially and adversely impact the recoverability of investments in or loans made to such entities. Adverse economic conditions in South Korea may also negatively impact asset values and the profitability and liquidity of our customers who operate in this region. In addition, a general overall decline in global economic conditions may materially and adversely affect our profitability and overall results of operations.
Legal and Regulatory Risks
Governmental regulation and regulatory actions against us may further impair our operations or restrict our growth. We are subject to significant governmental supervision and regulation. These regulations affect our lending practices, capital structure, investment practices, dividend policy and growth, among other things. Congress and federal regulatory agencies continually review banking laws, regulations and policies for possible changes. Statutes and regulations affecting our business may be changed at any time and the interpretation of these statutes and regulations by examining authorities may also change. In addition, regulations may be adopted which increase our deposit insurance premiums and enact special assessments which could increase expenses associated with running our business and adversely affect our earnings.
There can be no assurance that such statutes and regulations, any changes thereto or to their interpretation will not adversely affect our business. In particular, these statutes and regulations, and any changes thereto, could subject us to additional costs (including legal and compliance costs), limit the types of financial services and products we may offer and/or increase the ability of non-banks to offer competing financial services and products, among other things. In addition to governmental supervision and regulation, we are subject to changes in other federal and state laws, including changes in tax laws, which could materially affect us and the banking industry generally. We are subject to the rules, regulations of, and examination by the FRB, the FDIC, the DFPI, and the CFPB. In addition, we are subject to the rules and regulation of the Nasdaq Stock Market and the SEC and are subject to enforcement actions and other punitive actions by these agencies. If we fail to comply with federal and state regulations, the regulators may limit our activities or growth, impose fines on us or in the case of our bank regulators, ultimately require our bank to cease its operations. Bank regulations can hinder our ability to compete with financial services companies that are not regulated in the same manner or are less regulated. Federal and state bank regulatory agencies regulate many aspects of our operations. These areas include:
the capital that must be maintained;
the kinds of activities that can be engaged in;
the kinds and amounts of investments that can be made;
the locations of offices;
insurance of deposits and the premiums that we must pay for this insurance;
procedures and policies we must adopt;
conditions and restrictions on our executive compensation; and
how much cash we must set aside as reserves for deposits.
20



In addition, bank regulatory authorities have the authority to bring enforcement actions against banks and bank holding companies, including the Bank and Hope Bancorp, for unsafe or unsound practices in the conduct of their businesses or for violations of any law, rule or regulation, any condition imposed in writing by the appropriate bank regulatory agency or any written agreement with the authority. Enforcement actions against us could include a federal conservatorship or receivership for the bank, the issuance of additional orders that could be judicially enforced, the imposition of civil monetary penalties, the issuance of directives to enter into a strategic transaction, whether by merger or otherwise, with a third party, the termination of insurance of deposits, the issuance of removal and prohibition orders against institution-affiliated parties, and the enforcement of such actions through injunctions or restraining orders. In addition, as we have grown over $10 billion in assets, we are subject to enhanced CFPB examination and required to perform more comprehensive stress-testing on our business and operations.
We face a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations. The BSA, the USA PATRIOT Act of 2001, the Anti-Money Laundering Act of 2020, and other laws and regulations require financial institutions, among other duties, to institute and maintain an effective anti-money laundering program and file suspicious activity and currency transaction reports as appropriate. The federal Financial Crimes Enforcement Network is authorized to impose significant civil money penalties for violations of those requirements and has recently engaged in coordinated enforcement efforts with the individual federal banking regulators, as well as the U.S. Department of Justice, Drug Enforcement Administration, and Internal Revenue Service. We are also subject to increased scrutiny of compliance with the rules enforced by the Office of Foreign Assets Control and compliance with the Foreign Corrupt Practices Act. If our policies, procedures and systems are deemed deficient, we would be subject to liability, including fines and regulatory actions, on our ability to engage in expansionary activities, such as mergers and acquisitions, and restrictions on our ability to pay dividends and the necessity to obtain regulatory approvals to proceed with certain aspects of our business plan. Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for us. Any of these results could materially and adversely affect our business, financial condition and results of operations.
SBA lending is an important part of our business. Our SBA lending program is dependent upon the federal government, and we face specific risks associated with originating SBA loans. Our SBA lending program is dependent upon the federal government. As an SBA Preferred Lender, we enable our clients to obtain SBA loans without being subject to the potentially lengthy SBA approval process required for lenders that are not SBA Preferred Lenders. The SBA periodically reviews the lending operations of participating lenders to assess, among other things, whether the lender exhibits prudent risk management. When weaknesses are identified, the SBA may request corrective actions or impose enforcement actions, including revocation of the lender’s Preferred Lender status. If we lose our status as a Preferred Lender, we may lose some or all of our customers to lenders who are SBA Preferred Lenders, and as a result we could experience a material adverse effect to our financial results. Any changes to the SBA program, including changes to the level of guarantee provided by the federal government on SBA loans, may also have a material adverse effect on our business.
The sales of SBA 7(a) loans results in both premium income at the time of sale and a stream of future servicing income. We may not be able to continue originating these loans or selling them in the secondary market. Furthermore, even if we are able to continue originating and selling SBA 7(a) loans in the secondary market, we might not continue to realize premiums upon the sale of the guaranteed portion of these loans. When we sell the guaranteed portion of our SBA 7(a) loans, we incur credit risk on the non-guaranteed portion of the loans, and if a customer defaults on the non-guaranteed portion of a loan, we share any loss and recovery related to the loan pro-rata with the SBA. If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced by us, the SBA may seek recovery of the principal loss related to the deficiency from us, which could materially adversely affect our business, financial condition, results of operations and prospects.
The laws, regulations and standard operating procedures that are applicable to SBA loan products may change in the future. We cannot predict the effects of these changes on our business and profitability. Because government regulation greatly affects the business and financial results of all commercial banks and bank holding companies and especially our organization, changes in the laws, regulations and procedures applicable to SBA loans could adversely affect our ability to operate profitably.
21



Environmental laws may force us to pay for environmental problems. The cost of cleaning up or paying damages and penalties associated with environmental problems may increase our operating expenses. When a borrower defaults on a loan secured by real property, we often purchase the property in foreclosure or accept a deed to the property surrendered by the borrower. We may also take over the management of commercial properties whose owners have defaulted on loans. We also lease premises where our branches and other facilities are located, all where environmental problems may exist. Although we have lending, foreclosure and facilities guidelines that are intended to exclude properties with an unreasonable risk of contamination, hazardous substances may exist on some of the properties that we own, lease, manage or occupy. We may face the risk that environmental laws may force us to clean up the properties at our expense. The cost of cleaning up a property may exceed the value of the property. We may also be liable for pollution generated by a borrower’s operations if we take a role in managing those operations after a default. We may find it difficult or impossible to sell contaminated properties.
Changes in accounting standards may affect how we record and report our financial condition and results of operations. Our accounting policies and methods are fundamental to how we record and report our financial condition and results of operations. From time to time, the Financial Accounting Standards Board and SEC change the financial accounting and reporting standards that govern the preparation of our financial statements. These changes and their impacts on us can be hard to predict and may result in unexpected and materially adverse impacts on our reported financial condition and results of operations.
Financial and Market Risks
We may reduce or discontinue the payment of dividends on common stock. Our stockholders are only entitled to receive such dividends as our board of directors (the “Board”) may declare out of funds legally available for such payments. Although we have historically declared cash dividends on our common stock, we are not required to do so and may need to reduce or eliminate our common stock dividend in the future. Our ability to pay dividends to our stockholders is subject to the restrictions set forth in Delaware law, by the FRB, and by certain covenants contained in our subordinated debentures. Notification to the FRB is also required prior to our declaring and paying a cash dividend to our stockholders during any period in which our quarterly and/or cumulative twelve-month net earnings are insufficient to fund the dividend amount, among other requirements. We may not pay a dividend if the FRB objects or until such time as we receive approval from the FRB or we no longer need to provide notice under applicable regulations. In addition, we often rely on cash distributions from the Bank to fund dividends to our stockholders. The Bank’s ability to make cash distributions to Hope Bancorp is subject to the restrictions set forth under the California Financial Code and would also be subject to prior approval or restriction by the DFPI if the distribution by the Bank exceeds the lesser of (a) the retained earnings of the Bank or (b) three fiscal years net income, less distributions made by the Bank during such period. We cannot provide assurance that the Bank will be able to continue making cash distributions to Hope Bancorp, which could in turn, affect our ability to continue paying dividends on our common stock. The Bank may not be able to distribute cash to us if the DFPI objects or until such time as the Bank receives approval from the DFPI or the Bank no longer needs to obtain approval under applicable regulations. Further, the Bank may be restricted by applicable law or regulation or actions taken by its regulators, now or in the future, from making cash distributions to Hope Bancorp, which could, in turn, adversely impact our ability to pay dividends to our stockholders. Likewise, we may be restricted by applicable law or regulation or actions taken by our regulators, now or in the future, from paying dividends to our stockholders. Lastly, we cannot provide assurance that we will continue paying dividends on our common stock at current levels or at all. A reduction or discontinuance of dividends on our common stock could have a material adverse effect on our business, including the market price of our common stock.
The value of our securities in our investment portfolio may decline in the future. The fair value of our investment securities may be adversely affected by market conditions, including changes in interest rates, implied credit spreads, and the occurrence of any events adversely affecting the issuer of particular securities in our investments portfolio or any given market segment or industry in which we are invested. We analyze our securities available for sale on a quarterly basis to determine if there is a requirement to recognize current expected credit losses. The process for determining current expected credit losses usually requires complex, subjective judgments about the future financial performance of the issuer in order to assess the probability of receiving all contractual principal and interest payments sufficient to recover our amortized cost of the security. Because of changing economic and market conditions affecting issuers, we may be required to recognize credit losses in future periods, which could have a material adverse effect on our business, financial condition, or results of operations.
If we fail to maintain an effective system of internal controls and disclosure controls and procedures, we may not be able to accurately report our financial results or prevent fraud. Effective internal control over financial reporting and disclosure controls and procedures are necessary for us to provide reliable financial reports, effectively prevent fraud and to operate successfully as a public company. If we cannot provide reliable financial reports or prevent fraud, our reputation and business would be harmed. In addition, failure in our internal control over financial reporting and disclosure controls and procedures could cause us to fail to meet the continued listing requirements of the Nasdaq Global Select Market and, as a result, adversely impact the liquidity and trading price of our securities.
22



Anti-takeover provisions in our charter documents and applicable federal and state law may limit the ability of another party to acquire us, which could cause our stock price to decline. Various provisions of our charter documents could delay or prevent a third-party from acquiring us, even if doing so might be beneficial to our stockholders. These include, among other things, advance notice requirements to submit stockholder proposals at stockholder meetings and the authorization to issue “blank check” preferred stock by action of the Board acting alone, thus without obtaining stockholder approval. In addition, applicable provisions of federal and state banking law require regulatory approval in connection with certain acquisitions of our common stock and supermajority voting provisions in connection with certain transactions. In particular, both federal and state law limit the acquisition of ownership of, generally, 10% or more of our common stock without providing prior notice to the regulatory agencies and obtaining prior regulatory approval or non-objection or being able to rely on an exemption from such requirement. We are also subject to Section 203 of the Delaware General Corporation Law that, subject to exceptions, prohibits us from engaging in any business combinations with any interested stockholder, as defined in that section, for a period of three years following the date on which that stockholder became an interested stockholder. Collectively, these provisions of our charter documents and applicable federal and state law may prevent a merger or acquisition that would be attractive to stockholders and could limit the price investors would be willing to pay in the future for our common stock.
Our common stock is not insured and you could lose the value of your entire investment. An investment in our common stock is not a deposit and is not insured against loss by any government agency.
General Risk Factors
Our common stock is equity and therefore is subordinate to indebtedness and preferred stock. Our common stock constitutes equity interests and does not constitute indebtedness. As such, common stock will rank junior to all current and future indebtedness and other non-equity claims on us with respect to assets available to satisfy claims against us, including in the event of our liquidation. We may, and the Bank and our other subsidiaries may also, incur additional indebtedness from time to time and may increase our aggregate level of outstanding indebtedness. Additionally, holders of common stock are subject to the prior dividend and liquidation rights of any holders of our preferred stock that may be outstanding from time to time. The Board is authorized to cause us to issue additional classes or series of preferred stock without any action on the part of our stockholders. If we issue preferred shares in the future that have a preference over our common stock with respect to the payment of dividends or upon liquidation, or if we issue preferred shares with voting rights that dilute the voting power of the common stock, then the rights of holders of our common stock or the market price of our common stock could be materially adversely affected.
We may raise additional capital, which could have a dilutive effect on the existing holders of our common stock and adversely affect the market price of our common stock. We periodically evaluate opportunities to access capital markets, taking into account our financial condition, regulatory capital ratios, business strategies, anticipated asset growth and other relevant considerations. It is possible that future acquisitions, organic growth or changes in regulatory capital requirements could require us to increase the amount or change the composition of our current capital, including our common equity. For all of these reasons and others, and always subject to market conditions, we may issue additional shares of common stock or other capital securities in public or private transactions.
The issuance of additional common stock, debt, or securities convertible into or exchangeable for our common stock or that represent the right to receive common stock, or the exercise of such securities, could be substantially dilutive to holders of our common stock. Holders of our common stock have no preemptive or other rights that would entitle them to purchase their pro rata share of any offering of shares of any class or series and, therefore, such sales or offerings could result in dilution of the ownership interests of our stockholders.
23



Climate change concerns could adversely affect our business and our customers. Concerns over the long-term impacts of climate change have led and could continue to lead to governmental efforts around the world to mitigate those impacts. Climate change presents multi-faceted risks, including operational risk from the physical effects of climate events on us; credit risk from borrowers with significant exposure to climate risk; transition risks associated with the transition to a less carbon-dependent economy; and reputational risk from stakeholder concerns about our practices related to climate change. Consumers and businesses are changing their behavior and business preferences as a result of these concerns. New governmental regulations or guidance relating to climate change, as well as changes in consumers’ and businesses’ behaviors and business preferences, may affect whether and on what terms and conditions we will engage in certain activities or offer certain products or services. The governmental and supervisory focus on climate change could also result in our becoming subject to new or heightened regulatory requirements relating to climate change, such as requirements relating to operational resiliency or stress testing for various climate stress scenarios. Any such new or heightened requirements could result in increased regulatory, compliance or other costs or higher capital requirements. In connection with the transition to a low carbon economy, legislative or public policy changes and changes in consumer sentiment could negatively impact the businesses and financial condition of our clients, which may decrease revenues from those clients and increase the credit risk associated with loans and other credit exposures to those clients. Our business, reputation and ability to attract and retain employees may also be harmed if our response to climate change is perceived to be ineffective or insufficient.
We may be adversely affected by the lack of soundness of other financial institutions. The recent failures of some depository institutions have raised concerns among depositors that their deposits may be at risk. While we believe the Bank is operated in a safe and sound manner, a market-wide loss of depositor confidence caused by the failures, or the perceived unsoundness, of other depository institutions could lead to deposit outflows at the Bank, potentially at levels that could materially and adversely affect our business, financial condition, results of operations and stock price.
Our ability to engage in routine funding transactions could be adversely affected by the actions and lack of soundness of other financial institutions. Financial services companies may be interrelated as a result of trading, clearing, counterparty, and other relationships. We have exposure to different industries and counterparties, and through transactions with counterparties in the financial services industry, including broker-dealers, commercial banks, investment banks, and other financial intermediaries. As a result, defaults by, declines in the financial condition of, or even rumors or questions about, one or more financial services companies, or the financial services industry in general, could lead to market-wide liquidity problems and losses or defaults by financial institutions. These losses could have a material and adverse effect on our business, financial condition, results of operations and stock price.

Item 1B.    UNRESOLVED STAFF COMMENTS
None.

Item 1C.    CYBERSECURITY
General
As a financial institution, cybersecurity is a high priority for us as we receive and maintain the business and personal information of our customers on a daily basis. In addition, our business operations rely extensively on the continuous operation of our information and data processing systems and related back-up systems. Accordingly, we have developed and maintain a cybersecurity program that is focused on the goals of preparing for, preventing, detecting, mitigating, responding to and recovering from cyber threats and incidents, maintaining the privacy and protection of our customers’ data, and the continuity of our information and data processing systems.
Cybersecurity Risk Management
We believe that we have a robust cybersecurity program that is aligned to industry-standard cybersecurity frameworks. To identify and assess material risks from cybersecurity threats, our corporate risk management team considers cybersecurity threat risks alongside other company risks as part of our overall risk assessment and management process. To implement and maintain our cybersecurity program, we have a dedicated information security team that is managed by our Chief Information Security Officer. We believe our information security team is well positioned to identify risks from cybersecurity threats based on numerous job qualifications and on-going training.
24



As a regulated financial institution, we have designed our cybersecurity program based on the requirements of the Gramm-Leach Bliley Act of 1999 (“GLBA”) and the Federal Financial Institutions Examination Council (“FFIEC”) Cybersecurity Assessment Tool. Our processes for identifying, assessing and managing material risks from cybersecurity threats includes reliance on the FFIEC Cybersecurity Assessment Tool as well as recurring audits and assessments of our cybersecurity program and controls.
In addition to the above, we periodically (and at least annually) conduct an overall inherent cybersecurity risk assessment based on threats, the likelihood of the threats, and the potential impact of these threats to the Company. We conduct this assessment by reviewing industry-recognized breach reports, identifying the top threats, calculating the likelihood and impact of these threats, and thereby determining our overall inherent risk. We then use the Cybersecurity Assessment Tool to establish a risk profile. Based on the risk profile, the FFIEC Cybersecurity Assessment Tool recommends a program maturity level, which we use to determine whether we have the requisite minimum security controls in place that are effective. This control evaluation then helps us to determine our cybersecurity residual risk and whether we need to implement any additional controls.
In addition to using FFIEC Cybersecurity Assessment Tool, we evaluate the robustness and effectiveness of our cybersecurity program both internally and externally with periodic internal risk assessments, and internal and third-party audits. We also use third party assessments to simulate threat actors to test and evaluate our cybersecurity controls and the effectiveness of our overall program. As part of our cybersecurity program, we have developed an incident response plan based on industry-standard cybersecurity frameworks, with procedures for responding to and remediating a cyber-incident, which also includes a process to activate our business continuity plan, if necessary. We also review and test our incident response plan through simulations and assessments.
Furthermore, we employ recurring security awareness training for employees and produce recurring security awareness material for our customers.
The secure maintenance and transmission of confidential information, as well as execution of transactions over the systems of our third-party service providers, is essential to protect us and our customers against fraud and security breaches and to maintain customer confidence. Information security and risk management are an integral part of our new product and service implementation and vendor relationship management to confirm that they all meet the minimum standards and policies established and approved by our Board. We have developed processes to identify and oversee risks from cybersecurity threats associated with our third-party service providers, which includes the information security team assisting with and assessing cybersecurity robustness during vendor selection and onboarding as well as risk-based monitoring of vendors on an ongoing basis.
In the ordinary course of our business, we have experienced and expect to continue to experience cyber-based attacks and other attempts to compromise our information systems, although none, to our knowledge, has had a material adverse effect on our business, financial condition or results of operations. With regards to risks from cybersecurity threats, including as a result of previous cybersecurity incidents, we have conducted assessments and have determined that we do not believe any of the identified risks have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations or financial condition. While we do not believe cybersecurity threats are reasonably likely to affect us, our business strategy, our results of operations or our financial conditions, like all financial institutions, we face a risks of such threats, the consequences of which could be material. See Item 1A “Risk Factors – We are subject to operational risks relating to our technology and information systems,” above. In addition, given the constant and evolving threat of cyber-based attacks, we incur significant costs in an effort to detect and prevent security breaches and incidents, and these costs may increase in the future.
Cybersecurity Governance
Our Board oversees an enterprise-wide approach to risk management, designed to support the achievement of organizational objectives in the areas of strategy, operations, reporting, and compliance without exposing the organization to undue risk. While our Board has the ultimate oversight responsibility for the risk management process, the Board Risk Committee also has responsibility for overseeing risk management, including oversight of risks from cybersecurity threats. Additionally, as part of our cybersecurity governance, we annually purchase cybersecurity insurance customary for companies in our industry. While our Board and the Board Risk Committee oversee our cybersecurity program, management is responsible for implementing the program.
25



Our Chief Information Security Officer, who reports to our Chief Risk Officer, is responsible for managing our information security team, maintaining and continuing to develop and implement our cybersecurity program enterprise-wide and assessing and managing risks from cybersecurity threats, subject to oversight by and reporting to the Board Risk Committee, which in turn reports directly to the Board. In addition to the Board Risk Committee, two of our management committees are also involved in overseeing risks from cybersecurity threats: our Enterprise Risk Management Committee and our Information Security Sub-Committee. These two management committees report to the Board Risk Committee, which in turn reports directly to the Board.
We have processes to inform the Board Risk Committee and the Board about risks from cybersecurity threats. Our management team reports its findings using the FFIEC Cybersecurity Assessment Tool and our information security team’s determination as to whether our security controls, at a minimum, are in place and effective. The Chief Information Security Officer and the information security team regularly report to the Board Risk Committee and the Board regarding cybersecurity and related threats and trends, changes, control effectiveness and residual risk, the areas where our cybersecurity program may be improved and improvements made to address and remediate issues.

Item 2.PROPERTIES
Our principal executive offices are located at 3200 Wilshire Blvd., Suite 1400, Los Angeles, California 90010. As of December 31, 2023, we operated full-service branches at 47 leased and seven owned facilities, and we operated loan production offices at 9 leased facilities. Expiration dates of our leases range from 2024 to 2032. We believe our present facilities are suitable and adequate for our current operating needs.

Item 3.LEGAL PROCEEDINGS
    
In the normal course of business, we are involved in various legal claims. We have reviewed all legal claims against us with counsel and have taken into consideration the views of such counsel as to the potential outcome of the claims. Loss contingencies for all legal claims totaled approximately $535 thousand at December 31, 2023. It is reasonably possible we may incur losses in addition to the amounts we have accrued. However, at this time, we are unable to estimate the range of additional losses that are reasonably possible because of a number of factors, including the fact that certain of these litigation matters are still in their early stages and involve claims for which, at this point, we believe have little to no merit. Management has considered these and other possible loss contingencies and does not expect the amounts to be material to any of the consolidated financial statements.

Item 4.MINE SAFETY DISCLOSURES
Not Applicable.

26



Part II

Item 5.MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock is traded on the NASDAQ Global Select Market under the symbol “HOPE.”
The following table sets forth quarterly dividends paid on our common stock for the past two fiscal years:
For the Three Months Ended
March 31, 2022June 30, 2022September 30, 2022December 31, 2022March 31, 2023June 30, 2023September 30, 2023December 31, 2023
Dividends Paid$0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 
The Board expects to continue to pay quarterly cash dividends, however, no assurance can be given as to whether future dividends will be paid as cash dividend payments are dependent on the Company’s future earnings, capital requirements, and financial condition.
The closing price for our common stock on the NASDAQ Global Select Market on February 20, 2024 was $11.20 per share. As of February 20, 2024, there were 1,112 stockholders of record of our common stock.
Unregistered Sales of Equity Securities
There were no sales of any equity securities by the Company during the period covered this Annual Report on Form 10-K that were not registered under the Securities Act.
Issuer Purchases of Equity Securities
In January 2022, the Board approved a share repurchase program that authorized the Company to repurchase up to $50.0 million of its common stock. The stock repurchase authorization does not have an expiration date and may be modified, amended, suspended, or discontinued at the Company’s discretion at any time without notice. The Company did not repurchase any shares as part of this program during the three months ended December 31, 2023.
The following table summarizes share repurchase activities during the three months ended December 31, 2023:
PeriodTotal Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced ProgramApproximate Dollar Value of Shares that May Yet Be Purchased Under the Program
(Dollars in thousands)
October 1, 2023 to October 31, 2023— $— — $35,333 
November 1, 2023 to November 30, 2023— — — 35,333 
December 1, 2023 to December 31, 2023— — — 35,333 
Total— $— — 



Stock Performance Graph
The following graph compares the yearly percentage change in the cumulative total shareholder return (stock price appreciation plus reinvested dividends) on our common stock with (i) the cumulative total return of the NASDAQ Composite Index, and (ii) the cumulative total return of the KBW Regional Banking Index.
The graph assumes an initial investment of $100 and reinvestment of dividends. Points on the graph represent the performance as of the last business day of each of the years indicated. The graph is not indicative of future price performance. The graph does not constitute soliciting material and shall not be deemed filed or incorporated by reference into any filing by Hope Bancorp under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that we may specifically incorporate this graph by reference.

3407
ASSUMES $100 INVESTED ON DECEMBER 31, 2018
ASSUMES DIVIDENDS REINVESTED
FISCAL YEAR ENDING DECEMBER 31, 2023
 Period Ending
Stock/Index12/31/201812/31/201912/31/202012/31/202112/31/202212/31/2023
Hope Bancorp, Inc.$100.00$130.29$101.59$142.72$129.07$128.94
NASDAQ Composite Index$100.00$136.69$198.10$242.03$163.28$236.17
KBW Regional Banking Index$100.00$123.81$113.03$154.45$143.75$143.17

Item 6.[RESERVED]
27



Item 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read together with our Consolidated Financial Statements and accompanying notes presented elsewhere in this Report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those set forth under Item 1A “Risk Factors” and elsewhere in this Report. Please see the “Forward Looking Information” immediately preceding Part I of this Report.
Overview
Our principal business involves earning interest on loans and investment securities that are funded primarily by customer deposits, wholesale deposits, and other borrowings. Our operating income and net income are derived primarily from the difference between interest income received from interest earning assets and interest expense paid on interest bearing liabilities and, to a lesser extent, from fees received in connection with servicing loan and deposit accounts and income from the sale of loans. Our major expenses are the interest we pay on deposits and borrowings, provisions for credit losses and general operating expenses, which primarily consist of salaries and employee benefits, occupancy costs, and other operating expenses. Interest rates are highly sensitive to many factors that are beyond our control, such as changes in the national economy and in the related monetary policies of the FRB, inflation, unemployment, consumer spending and political changes and events. We cannot predict the impact that these factors and future changes in domestic and foreign economic and political conditions might have on our performance.
Our results are affected by economic conditions in our markets and to a lesser degree in South Korea. A decline in economic and business conditions in our market areas or in South Korea may have a material adverse impact on the quality of our loan portfolio or the demand for our products and services, which in turn may have a material adverse effect on our financial condition and results of operations.

28



Selected Financial Data
The following table presents selected financial and other data for each of the years in the five-year period ended December 31, 2023. The information below should be read in conjunction with, the more detailed information included elsewhere herein, including our Audited Consolidated Financial Statements and Notes thereto.
As of or For The Year Ended December 31,
 20232022202120202019
 (Dollars in thousands, except share and per share data)
Income Statement Data:
Interest income$1,048,878 $716,115 $566,532 $598,878 $684,786 
Interest expense523,017 137,694 53,762 131,380 218,191 
Net interest income525,861 578,421 512,770 467,498 466,595 
Provision (credit) for credit losses29,100 9,600 (12,200)95,000 7,300 
Net interest income after provision (credit) for credit losses496,761 568,821 524,970 372,498 459,295 
Noninterest income45,577 51,397 43,594 53,432 49,683 
Noninterest expense364,451 324,170 293,292 283,639 282,628 
Income before income tax provision177,887 296,048 275,272 142,291 226,350 
Income tax provision44,214 77,771 70,700 30,776 55,310 
Net income$133,673 $218,277 $204,572 $111,515 $171,040 
Per Common Share Data:
Earnings - basic$1.11 $1.82 $1.67 $0.90 $1.35 
Earnings - diluted$1.11 $1.81 $1.66 $0.90 $1.35 
Cash dividends declared$0.56 $0.56 $0.56 $0.56 $0.56 
Book value (period end)$17.66 $16.90 $17.44 $16.66 $16.19 
Number of common shares outstanding (period end)
120,126,786 119,495,209 120,006,452 123,264,864 125,756,543 
Balance Sheet Data—At Period End:
Assets$19,131,522 $19,164,491 $17,889,061 $17,106,664 $15,667,440 
Interest earning cash and deposits at other banks1,756,154 293,002 44,947 94,014 415,437 
Investment securities AFS and HTM2,408,971 2,243,195 2,666,275 2,285,611 1,715,987 
Loans receivable, net of unearned loan fees and discounts (excludes loans held for sale)13,853,619 15,403,540 13,952,743 13,563,213 12,276,007 
Deposits14,753,753 15,738,801 15,040,450 14,333,912 12,527,364 
FHLB and FRB borrowings1,795,726 865,000 300,000 250,000 625,000 
Convertible notes, net444 217,148 216,209 204,565 199,458 
Subordinated debentures107,825 106,565 105,354 104,178 103,035 
Stockholders’ equity2,121,243 2,019,328 2,092,983 2,053,745 2,036,011 
Average Balance Sheet Data:
Assets$19,806,163 $18,231,609 $17,467,665 $16,515,102 $15,214,412 
Interest earning cash and deposits at other banks1,685,462 116,689 774,756 921,163 390,755 
Investment securities AFS and HTM2,262,840 2,415,621 2,392,589 1,899,948 1,796,412 
Loans receivable and loans held for sale14,732,166 14,634,627 13,343,431 12,698,523 11,998,675 
Deposits15,630,018 15,172,272 14,727,807 13,560,629 12,066,844 
FHLB and FRB borrowings1,618,292 528,342 208,721 435,836 688,652 
Stockholders’ equity2,061,665 2,034,027 2,071,453 2,032,570 1,981,811 
29



 As of or For The Year Ended December 31,
20232022202120202019
 (Dollars in thousands)
Selected Performance Ratios:
Return on average assets(1)
0.67 %1.20 %1.17 %0.68 %1.12 %
Return on average stockholders’ equity(2)
6.48 %10.73 %9.88 %5.49 %8.63 %
Dividend payout ratio50.44 %30.91 %33.71 %62.22 %41.54 %
Net interest margin(3)
2.81 %3.36 %3.09 %3.00 %3.27 %
Yield on interest earning assets(4)
5.60 %4.16 %3.42 %3.84 %4.81 %
Cost of interest bearing liabilities(5)
4.00 %1.32 %0.56 %1.26 %2.16 %
Efficiency ratio(6)
63.78 %51.47 %52.72 %54.45 %54.74 %
Regulatory Capital Ratios:
Tangible common equity (“TCE”) ratio8.86 %8.29 %9.31 %9.50 %10.27 %
Hope Bancorp:
Common equity tier 112.28 %10.55 %11.03 %10.94 %11.76 %
Tier 1 capital12.96 %11.15 %11.70 %11.64 %12.51 %
Total capital13.92 %11.97 %12.42 %12.87 %13.23 %
Tier 1 leverage10.11 %10.15 %10.11 %10.22 %11.22 %
Bank of Hope:
Common equity tier 112.75 %12.03 %12.96 %12.90 %13.72 %
Tier 1 capital12.75 %12.03 %12.96 %12.90 %13.72 %
Total capital13.71 %12.85 %13.68 %14.14 %14.44 %
Tier 1 leverage9.94 %10.94 %11.20 %11.33 %12.29 %
Asset Quality Data:
Nonaccrual loans(7)
$45,204 $49,687 $54,616 $85,238 $54,785 
Accruing delinquent loans past due 90 days or more (8)
261 401 2,131 614 7,547 
Accruing troubled debt restructured loans— 16,931 52,418 37,354 35,709 
Total nonperforming loans
45,465 67,019 109,165 123,206 98,041 
Other real estate owned63 2,418 2,597 20,121 24,091 
Total nonperforming assets (9)
$45,528 $69,437 $111,762 $143,327 $122,132 
Asset Quality Ratios:
Nonaccrual loans to loans receivable0.33 %0.32 %0.39 %0.63 %0.45 %
Nonperforming assets to total assets (9)
0.24 %0.36 %0.62 %0.84 %0.78 %
Allowance for credit losses to loans receivable1.15 %1.05 %1.01 %1.52 %0.77 %
Allowance for credit losses to nonaccrual loans351.06 %326.76 %257.34 %242.55 %171.84 %
Net charge-offs (recoveries) to average loans receivable0.22 %(0.08)%0.40 %0.07 %0.04 %
____________________________________________________
(1)Net income divided by average assets.
(2)Net income divided by average stockholders’ equity.
(3)Net interest income expressed as a percentage of average interest earning assets.
(4)Interest income divided by average interest earning assets.
(5)Interest expense divided by average interest bearing liabilities.
(6)Noninterest expense divided by the sum of net interest income plus noninterest income.
(7)Excludes delinquent SBA loans that are guaranteed and currently in liquidation.
(8)Excludes acquired credit impaired loans totaling $13.2 million as of December 31, 2019.
(9)Nonperforming assets consist of nonperforming loans and OREO. Prior to January 1, 2023, nonperforming loans included accruing TDR loans.
30



Critical Accounting Policies
Our financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and generally accepted practices within the banking industry. The financial information contained within these statements is, to a significant extent, financial information that is based on approximate measures of the financial effects of transactions and events that have already occurred. All of our significant accounting policies are described in Note 1 of our Notes to Consolidated Financial Statements presented elsewhere in this Report and are essential to understanding Management’s Discussion and Analysis of Financial Condition and Results of Operations. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of our financial statements. Actual results may materially and adversely differ from these estimates under different assumptions or conditions.
The following is a summary of the more subjective and complex accounting estimates and judgments affecting the financial condition and results reported in our financial statements. In each area, we have identified the variables we believe to be the most important in the estimation process. We use the best information available to us to make the estimations necessary to value the related assets and liabilities in each of these areas. Management has reviewed these critical accounting estimates and related disclosures with our Audit Committee.
Investment Securities
Description - We evaluate investment securities AFS and HTM for impairment related to credit losses on at least a quarterly basis. Based on our evaluation, we do not believe that we had any investment securities AFS or HTM with a credit loss impairment as of December 31, 2023. Investment securities are discussed in more detail under “Financial Condition - Investment Securities Portfolio.”
Subjective Estimates and Judgments - Significant judgment is involved in determining when an investment securities AFS decline in fair value is credit impaired. Investment securities AFS in unrealized loss positions are first assessed as to whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through current earnings. We then apply a zero credit loss assumption to investment securities issued by the U.S. government or government-sponsored enterprises. For other securities that do not meet these criteria, we evaluate whether the decline in fair value resulted from credit losses or other factors. In evaluating whether a credit loss exists, we set up an initial filter for impairment triggers. Once the quantitative filters have been triggered, the securities are placed on a watch list and an additional assessment is performed to identify whether a credit impairment exists. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors.
The investment securities HTM as of December 31, 2023, were all issued by the U.S. government or government-sponsored enterprises and therefore the Company applied a zero credit loss assumption.
Impact if Actual Results Differ From Estimates and Judgments - Changes in management’s assessment of the factors used to determine if an investment security is credit impaired could lead to additional impairment charges. Additionally, a security that had no apparent risk could be affected by a sudden or acute market condition and necessitate an impairment charge.
31



Allowance for Credit Losses
Description - The allowance for credit losses is maintained at a level believed to be adequate by management to absorb expected lifetime credit losses in the loan portfolio as of the date of the consolidated financial statements. The adequacy of the allowance for credit losses is determined by management based upon an evaluation and review of the credit quality of the loan portfolio, consideration of current and projected economic conditions and variables, historical loss experience, relevant internal and external factors that affect the collection of a loan, and other pertinent factors.
The allowance for credit losses is discussed in more detail under “Financial Condition - Allowance for Credit Losses.”
Subjective Estimates and Judgments - We determine the adequacy of the allowance for credit losses by analyzing and estimating lifetime expected credit losses in the loan portfolio. The allowance for credit losses is determined utilizing quantitative and qualitative loss factors.
Included in the quantitative portion of our analysis of the allowance for credit losses are key inputs including borrowers’ net operating income, debt coverage ratios, and real estate collateral values, as well as key inputs that are more subjective or require management’s judgment including key macroeconomic variables from Moody’s forecast scenarios including GDP, unemployment rates, interest rates, and commercial real estate prices. These key inputs are utilized in our models to develop probability of default (“PD”) and loss given default (“LGD”) assumptions used in the calculation of estimated quantitative losses. The key macroeconomic variables were derived from Moody’s consensus scenario as of December 31, 2023 and 2022.
Certain key macroeconomic variable inputs used in the calculation of our allowance for credit losses experienced a weakening between projections as of December 31, 2022 versus projections as of December 31, 2023, particularly projected GDP growth and CRE Price Index growth rates. This contributed to an increase in our allowance for credit losses estimated loss rates at December 31, 2023, compared with at December 31, 2022. Changes in the key macroeconomic variables are presented in the tables below.
Moody's consensus projected key macroeconomic variable inputs as of December 31, 2023:
Year Ending December 31,
202420252026
GDP Growth*0.7%2.2%1.9%
Unemployment Rate4.4%4.1%4.0%
CRE Price Index Growth*(6.4)%6.9%8.5%
10 Year Treasury Rate4.2%4.0%4.0%
__________________________________
* Represents year over year growth rates.
Moody's consensus projected key macroeconomic variable inputs as of December 31, 2022:
Year Ending December 31,
202320242025
GDP Growth*0.3%1.6%2.6%
Unemployment Rate4.6%4.7%4.2%
CRE Price Index Growth*(2.6)%1.7%6.4%
10 Year Treasury Rate4.5%3.7%3.3%
__________________________________
* Represents year over year growth rates.
In addition to an estimate of quantitatively derived losses, our allowance for credit losses also includes an estimate of qualitatively derived losses to account for risks not fully captured by the quantitative calculation of estimated credit losses. At December 31, 2023, the qualitative portion of our allowance for credit losses totaled $35.7 million compared with $45.1 million at December 31, 2022. The qualitative portion of our allowance for credit losses is determined by management and takes into consideration factors related to changes to lending policies, changes in the nature and volume of loans, risks related to lending management, changes to the volume and severity of past due and nonaccrual loans, changes in the quality of loan review, concentrations of credit, and other external factors. Some of these factors are more subjective than others and require significant judgment from management to determine estimated losses.
32



Impact if Actual Results Differ From Estimates and Judgments - Adverse changes in management’s assessment of the assumptions and key inputs used to determine the allowance for credit losses could lead to increases in the allowance for credit losses through additional provisions for credit losses. If actual losses and conditions differ materially from the assumptions used to determine the allowance for credit losses, our actual credit losses could differ materially from management’s estimates.
Moody’s consensus forecast assumes that the probability that the economy will perform better than the consensus estimates is equal to the probability that it will perform worse. A sensitivity analysis of our allowance for credit losses was performed by estimating credit losses using the Moody’s S2 scenario as of December 31, 2023, which has a more negative outlook on the economy compared with the Moody’s consensus scenario. The S2 scenario includes assumptions including elevated market interest rates despite a weakening of the economy due to inflationary concerns, elevated risk associated with the Russian invasion of Ukraine and the Hamas/Israel conflict, rising tensions with China regarding Taiwan that could limit the global chip supply, a decline in consumer confidence due to concerns of additional bank failures, increased risk of a federal government shutdown, and a decline in the stock market in 2024. Incorporating key macroeconomic inputs from Moody’s S2 projected scenario in our calculation of the allowance for credit losses resulted in additional allowance for credit losses of approximately $21.6 million compared with the results using the Moody’s consensus forecast as of December 31, 2023. Management reviews the results using the comparison scenario for sensitivity analysis and considered the results when evaluating the qualitative factor adjustments.
While management believes that it has established adequate allowances for lifetime credit losses on loans, actual results may prove different, and the differences could be material.
Goodwill
Description - Goodwill is generally determined as the excess of the fair value of the consideration paid over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill recorded in a purchase business combination is determined to have an indefinite useful life and is not amortized but tested for impairment at least annually. Goodwill may also be tested for impairment on an interim basis if circumstances change or an event occurs between annual tests that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The Company is managed as a single combined operating segment. An impairment loss must be recognized for any excess of carrying value over fair value of the goodwill.
Subjective Estimates and Judgments - Before applying the goodwill impairment test, in accordance with ASC 350 “Intangibles - Goodwill and Other”, we perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, we do not perform Step 1 of the impairment analysis. We assess certain qualitative factors to determine whether impairment is likely including: our market capitalization, capital adequacy, continued performance compared to peers, and continued improvement in asset quality trends, among others. This qualitative assessment can be subjective in nature and includes a certain amount of management judgment in determining whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount.
In the event we perform an impairment test, the determination of fair value is based on a combination of valuation techniques which include the income approach using the discounted cash flow method and market approach using the guideline public company method and guideline transaction method. These valuation approaches incorporate management assumptions and estimates including developing cash flow projections, selecting appropriate discount rates, calculation of a terminal growth rate, minimum target capitalization levels, identifying relevant market comparables, incorporating current and projected economic conditions, and selecting an appropriate control premium.
Management reviewed and assessed events and conditions during the three months ended December 31, 2023, including macroeconomic and market factors, industry and banking sector events, Company-specific stock price and performance indicators, a comparison of management’s forecast and assumptions to those used in its September 30, 2023 quantitative step 1 impairment test. Based on these considerations, management concluded that it was not more-likely-than-not that the fair value of either of goodwill was impaired as of December 31, 2023.

33



Impact if Actual Results Differ From Estimates and Judgments - Changes in qualitative factors assessed, changes to assumptions used in the impairment test, selection and weighting of the various fair value techniques, and downturns in economic or business conditions, could have a significant adverse impact on the carrying value of goodwill and could result in impairment losses which could have a material impact our financial condition and earnings. We performed a goodwill impairment quantitative test as of September 30, 2023 and based on this analysis we concluded the fair value of the Company exceeded the carrying value by 15.4% using a discount rate of 13.6% for the income approach. Management performed a sensitivity analysis of the discount rate used in the income approach of the goodwill impairment analysis and a 50 basis point increase to the discount rate would result in the fair value of the Company exceeding the carrying amount by 10.9% a reduction of 4.5%.
Goodwill is discussed in more detail in Note 5 to our Consolidated Financial Statements presented this Report.
Income Taxes
Description - We use the asset and liability method of accounting for income taxes in which deferred tax assets and liabilities are established for the temporary differences between the financial reporting basis and the tax basis of our asset and liabilities. The realization of the net deferred tax asset generally depends upon future levels of taxable income and the existence of prior years’ taxable income, to which “carry back” refund claims could be made. A valuation allowance is maintained, when necessary, to reduce deferred tax assets that management estimates are more likely than not to be unrealizable based on available evidence at the time the estimate is made. Furthermore, tax positions that could be deemed uncertain are required to be disclosed and reserved for if it is more likely than not that the position would not be sustained upon audit examination. Taxes are discussed in more detail in Note 11 to our Notes to Consolidated Financial Statements presented in this Report.
Subjective Estimates and Judgments - Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. Some judgments are subjective and involve estimates and assumptions about matters that are inherently uncertain. In determining the valuation allowance, we use historical and forecasted future operating results. In determining the level of reserve needed for uncertain tax positions, we consider relevant current legislation and court rulings, among other authoritative items, to determine the level of exposure inherent in our tax positions. Management believes that the accounting estimate related to the valuation allowance and uncertain tax positions are a critical accounting estimate because the underlying assumptions can change from period to period.
Impact if Actual Results Differ From Estimates and Judgments - Although management believes that the judgments and estimates used are reasonable, should actual factors and conditions differ materially from those considered by management, the actual realization of the net deferred tax asset and tax positions taken could differ materially from the amounts recorded in the financial statements. If we are not able to realize all or part of our net deferred tax asset in the future or if a tax position is overturned by a taxing authority, an adjustment to the deferred tax asset valuation allowance would be charged to income tax expense in the period such determination was made which could have a material impact on our earnings.
34



Results of Operations
Operations Summary
Our most significant source of income is net interest income, which is the difference between our interest income and our interest expense. Generally, interest income is generated from the loans we extend to our customers, our investments and interest earning cash; and interest expense is generated from interest bearing deposits our customers have with us and from our borrowings or debt. Our ability to generate profitable levels of net interest income is largely dependent on our ability to manage the levels of interest earning assets and interest bearing liabilities, and the rates received or paid on them, as well as our ability to maintain sound asset quality and appropriate levels of capital and liquidity. As mentioned above, interest income and interest expense may fluctuate based on factors beyond our control, such as economic or political conditions and policies.
We attempt to minimize the effect of interest rate fluctuations on net interest margin by monitoring our interest sensitive assets and our interest sensitive liabilities. Net interest income can be affected by a change in the composition of assets and liabilities, such as replacing higher yielding loans with a like amount of lower yielding investment securities. Changes in the level of nonaccrual loans and changes in volume and interest rates can also affect net interest income.
Our other source of income is noninterest income, including service charges and fees on deposit accounts, net gains on sale of loans that were held for sale and investment securities AFS, and other income and fees.
Our expenses consist of interest expense, the provisions for credit losses, and noninterest expenses, which are primarily salaries and benefits and occupancy expense. The following table presents our condensed consolidated statements of income and the changes year over year.
 Year Ended December 31, 2023Increase
(Decrease)
Year Ended December 31, 2022Increase
(Decrease)
Year Ended December 31, 2021
Amount%Amount%
(Dollars in thousands)
Interest income$1,048,878 $332,763 46 %$716,115 $149,583 26 %$566,532 
Interest expense523,017 385,323 280 %137,694 83,932 156 %53,762 
Net interest income525,861 (52,560)(9)%578,421 65,651 13 %512,770 
Provision (credit) for credit losses29,100 19,500 203 %9,600 21,800 N/A(12,200)
Noninterest income45,577 (5,820)(11)%51,397 7,803 18 %43,594 
Noninterest expense364,451 40,281 12 %324,170 30,878 11 %293,292 
Income before income tax provision177,887 (118,161)(40)%296,048 20,776 %275,272 
Income tax provision44,214 (33,557)(43)%77,771 7,071 10 %70,700 
Net income$133,673 $(84,604)(39)%$218,277 $13,705 %$204,572 

Net Income
Our net income was $133.7 million for 2023 compared with $218.3 million for 2022 and $204.6 million for 2021. Our diluted earnings per common share totaled $1.11, $1.81, and $1.66 for the years 2023, 2022, and 2021, respectively. The return on average assets was 0.67%, 1.20%, and 1.17% and the return on average stockholders’ equity was 6.48%, 10.73%, and 9.88% for the years 2023, 2022, and 2021, respectively. The decrease in net income for 2023 compared with 2022 was primarily due to increases in interest expense, provision for credit losses and noninterest expense. The increase in net income for 2022 compared with 2021 was due primarily to an increase in net interest income, offset partially by increases in the provision for credit losses and noninterest expense.
35



Net Interest Margin and Net Interest Rate Spread
We analyze our earnings performance using, among other measures, net interest spread and net interest margin. The net interest spread represents the difference between the weighted average yield earned on interest earning assets and the weighted average rate paid on interest bearing liabilities. Net interest income, when expressed as a percentage of average total interest earning assets, is referred to as the net interest margin. Our net interest margin is affected by changes in the yields earned on assets and rates paid on liabilities, as well as the ratio of the amounts of interest earning assets to interest bearing liabilities.
Interest rates charged on our loans are affected principally by the demand for such loans, the supply of money available for lending purposes, the interest rate environment, and other competitive factors. These factors are in turn affected by general economic conditions and other factors beyond our control, such as federal economic policies, the general supply of money in the economy, legislative tax policies, governmental budgetary matters, and the actions of the FRB.
36



The following tables present our consolidated daily average balance of major assets and liabilities, together with interest rates earned and paid on the various sources and uses of funds for the periods indicated:
 Year Ended December 31,
 202320222021
 Average
Balance
Interest
Income/
Expense
Average
Yield/
Rate
Average
Balance
Interest
Income/
Expense
Average
Yield/
Rate
Average
Balance
Interest
Income/
Expense
Average
Yield/
Rate
 (Dollars in thousands)
INTEREST EARNING ASSETS:
Loans (1) (2)
$14,732,166 $892,563 6.06 %$14,634,627 $660,732 4.51 %$13,343,431 $528,174 3.96 %
Investment securities AFS and HTM (3)
2,262,840 66,063 2.92 %2,415,621 52,220 2.16 %2,392,589 35,492 1.48 %
Interest earning cash and deposits at other banks1,685,462 87,361 5.18 %116,689 1,295 1.11 %774,756 1,302 0.17 %
FHLB stock and other investments47,249 2,891 6.12 %59,624 1,868 3.13 %69,254 1,564 2.26 %
Total interest earning assets18,727,717 1,048,878 5.60 %17,226,561 716,115 4.16 %16,580,030 566,532 3.42 %
Total noninterest earning assets1,078,446 1,005,048 887,635 
Total assets$19,806,163 $18,231,609 $17,467,665 
INTEREST BEARING LIABILITIES:
Deposits:
Money market, interest bearing demand and savings deposits$4,858,919 $161,751 3.33 %$6,517,879 $72,763 1.12 %$5,967,253 $26,490 0.44 %
Time deposits6,409,056 279,480 4.36 %3,084,851 42,076 1.36 %3,178,722 15,521 0.49 %
Total interest bearing deposits11,267,975 441,231 3.92 %9,602,730 114,839 1.20 %9,145,975 42,011 0.46 %
FHLB and FRB borrowings1,618,292 69,365 4.29 %528,342 11,525 2.18 %208,721 2,561 1.23 %
Convertible notes, net77,848 1,925 2.47 %216,654 5,289 2.44 %215,633 5,289 2.45 %
Subordinated debentures, net103,277 10,496 10.02 %102,037 6,041 5.84 %100,848 3,901 3.82 %
Total interest bearing liabilities13,067,392 523,017 4.00 %10,449,763 137,694 1.32 %9,671,177 53,762 0.56 %
Noninterest bearing liabilities and equity:
Noninterest bearing demand deposits4,362,043 5,569,542 5,581,832 
Other liabilities315,063 178,277 143,203 
Stockholders’ equity2,061,665 2,034,027 2,071,453 
Total liabilities and stockholders’ equity$19,806,163 $18,231,609