Hope Bancorp
Annual Report 2018

Plain-text annual report

2018 Annual Report The first and only super regional Korean-American bank in the United States Company Profile Hope Bancorp, Inc. is the holding company of Bank of Hope, one of the leading Asian-American banks in the United States. Headquartered in Los Angeles and with $15.31 billion in total assets as of December 31, 2018, Bank of Hope serves a multi-ethnic population of customers across the nation with full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia and Alabama. The Bank also operates SBA loan production offices in Seattle, Houston, Denver, Dallas, Atlanta, Portland, Oregon, Virginia, New York City and Northern California; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in California; and a representative office in Seoul, Korea. Building on the Bank’s expertise in small business lending, commercial real estate lending, C&I lending and international trade finance, Bank of Hope is today a diversified financial institution with an expanded offering of commercial and consumer products and services, including residential mortgage and warehouse lending, credit cards, equipment lease financing and foreign currency, among others. Having grown alongside the Bank’s customers fostering growth within its communities, Bank of Hope understands its markets well and is committed to help its customers achieve their financial goals. We are committed to improving the value of our services as BANKERS, providing comprehensive financial solutions as EXPERTS, and being good NEIGHBORS that foster growth for our customers and communities. 2018 ANNUAL REPORT / 1 Message to Stockholders Investments to Sustain the Long-Term Growth of Bank of Hope Dear Valued Stockholders, Customers and Employees: 2018 was a year of significant investments to support the longer-term growth of our organization as a regional bank. Investments in our infrastructure. Investments in our processes and workflow. Investments in our people and capabilities. Notwithstanding these investments on a backdrop of a challenging business environment, we sucessfully completed the year with numerous achievments and solid financial performance. We made progress throughout the year with a corporate transformation plan designed to enhance the diversification of our revenue streams and improve the overall work flow by providing greater operational efficiencies in the lending process. With our frontline focusing on the specialized needs of our commercial business banking customers and branch-based consumer customers, we have improved our overall services and relationships to strengthen our relevance to their financial needs. With $15 billion in total assets, we also recognized the n Scott Yoon-Suk Whang Chairman of the Board greater capabilities and depth of experience we must have as a regional bank. And with the enhanced posture of We also successfully executed on a capital management our organization, we successfully recruited experienced strategy that provided attractive terms and financial bankers from larger mainstream banks, strengthening flexibility, as well as an opportunity to consummate a our capabilities in many areas, including information meaningful share buyback in connection with the issuance. technology, internal audit, risk, commercial lending and We raised $217.5 million dollars through a convertible note treasury management, among others. offering, of which $100 million was allocated to a stock We believe these investments create greater opportunities capital at the bank level, positioning us to successfully that will lead to stronger and more profitable growth execute on our growth strategies while effectively for Bank of Hope for the long term. managing our loan concentrations. repurchase program. The remainder was utilized to build 202018 ANNUAL REPORT / 2 Creating Greater Opportunities Leading to More Profitable Growth n Kevin S. Kim President & Chief Executive Officer 2018 ANNUAL REPORT / 3 Message to Stockholders One of the leading Asian-American banks in the United States All-in-all, including an additional $50 million stock buyback Looking forward into 2019, we are committed to improving program completed during the fourth quarter, we repurchased our services to our customers, our relationships within our $150 million of our stock, or 9,002,453 shares, in 2018, communities, our communications with our investment enhancing stockholder value by reducing the total number community, our partnership with our regulators and our of shares outstanding at year-end by 6.6%. relevance to our employees. We believe the investments and initiatives that we are currently undertaking strengthen our After these share repurchases during 2018, the Company competitive position and will lead to enhanced operational continued to maintain robust capital levels with total efficiencies and financial performance for years to come. risk-based capital at 12.94%, leverage ratio at 10.55%, and common equity tier 1 capital at 11.44% at year-end. Bank of Hope is well positioned as one of the leading Asian-American banks in the country with solid presence in Throughout the year, we carefully managed our cost structure all of the top targeted geographic markets. The future of our meaningful asset quality improvement and delivered record national presence to be a top performer for our stockholders, levels of earnings. customers, staff and communities. We are confident and look forward to delivering greater returns for all of our stakeholders. Net income for 2018 totaled $189.6 million, or $1.44 per diluted common share, compared with $139.4 million, or On behalf of the entire Board of Directors, we express our $1.03 per diluted common share in 2017. The return on deepest appreciation to our employees for their tireless average assets for 2018 improved to 1.29%, and the return efforts and dedication, our customers for their loyal on average stockholders’ equity increased to 9.92%. patronage, our regulators for their collaborative guidance and our stockholders for their ongoing trust and support. As of December 31, 2018, total assets increased 8% over 2017 to $15.31 billion, loans receivable increased 9% to $12.10 billion and total deposits increased 12% to $12.16 billion. Sincerely, Given the solid financial performance for the year notwithstanding the considerable investments in our organization, our Board of Directors increased the quarterly dividend to our stockholders for the sixth consecutive year to $0.14 per common share. Scott Yoon-Suk Whang Chairman of the Board Kevin S. Kim President & Chief Executive Officer and drove down our core noninterest expenses to average organization is strong as we continue to progress toward assets, generated record loan origination volumes, achieved our Vision to build upon our Korean-American heritage and Financial Highlights . $ 1 5 3 1 b i l l i o n . $ 1 2 1 0 b i l l i o n . $ 1 2 1 6 b i l l i o n 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Total Assets Loans Receivable Total Deposits The strong financial performance of Bank of Hope has garnered numerous accolades $ 1 8 9 6 m . i l l i o n . $ 1 9 1 m i l l i o n . 1 2 9 4 % 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Net Income Stockholders’ Equity Total Risk-based Capital Ratio 2018 ANNUAL REPORT / 4 2018 ANNUAL REPORT / 5 Selected Financial Data Selected Financial Data (dollars in thousands, except share and per share data) 2018 2017 2016 2015 2014 (dollars in thousands) 2018 2017 2016 2015 2014 As of and For the Years Ended December 31, As of and For the Years Ended December 31, Income Statement Data Interest income Interest expense Net interest income Provision for loan losses $ 650,172 $ 572,104 $ 421,934 $ 313,660 $ 302,657 162,245 90,724 58,579 40,618 36,060 487,927 481,380 363,355 273,042 266,597 14,900 17,360 9,000 8,000 12,638 Net interest income after provision for loan losses 473,027 464,020 354,355 265,042 253,959 Noninterest income Noninterest expense 60,180 66,415 51,819 43,691 44,187 277,726 266,601 214,975 153,384 151,624 Income before income tax provision 255,481 263,834 191,199 155,349 146,522 Income tax provision Net income Per Common Share Data Earnings _ basic Earnings _ diluted 65,892 124,389 77,452 63,091 57,907 $ 189,589 $ 139,445 $ 113,747 $ 92,258 $ 88,615 $ 1.44 $ 1.03 $ 1.10 $ 1.16 $ 1.11 $ 1.44 $ 1.03 $ 1.10 $ 1.16 $ 1.11 Book value (period end, excluding warrants) $ 15.03 $ 14.23 $ 13.72 $ 11.79 $ 11.10 Cash dividends declared per common share $ 0.54 $ 0.50 $ 0.45 $ 0.42 $ 0.35 Number of common shares outstanding (period end) 126,639,912 135,511,891 135,240,079 79,566,356 79,503,552 Balance Sheet Data—At Period End Assets $ 15,305,952 $ 14,206,717 $ 13,441,422 $ 7,912,648 $ 7,140,330 Securities available for sale $ 1,846,265 $ 1,720,257 $ 1,556,740 $ 1,010,556 $ 792,523 Loans receivable, net of unearned loan fees and discounts (excludes loans held for sale) $ 12,098,115 $ 11,102,575 $ 10,543,332 $ 6,248,341 $ 5,565,192 Deposits $ 12,155,656 $ 10,846,609 $ 10,642,035 $ 6,340,976 $ 5,693,452 Federal Home Loan Bank advances $ 821,280 $ 1,227,593 $ 754,290 $ 530,591 $ 480,975 Subordinated debentures Convertible notes, net Stockholders’ equity Average Balance Sheet Data Assets $ 101,929 $ 100,853 $ 99,808 $ 42,327 $ 42,158 $ 194,543 $ - $ - $ - $ - $ 1,903,211 $ 1,928,255 $ 1,855,473 $ 938,095 $ 882,773 $ 14,749,166 $ 13,648,963 $ 10,342,063 $ 7,389,530 $ 6,830,244 Securities available for sale $ 1,772,080 $ 1,679,468 $ 1,276,068 $ 871,010 $ 713,775 Gross loans, including loans held for sale $ 11,547,022 $ 10,642,349 $ 8,121,897 $ 5,846,658 $ 5,355,243 Deposits Stockholders’ equity $ 11,628,177 $ 10,751,886 $ 8,232,984 $ 5,879,704 $ 5,439,920 $ 1,910,224 $ 1,907,746 $ 1,342,954 $ 912,609 $ 848,443 Complete financial information is contained in the Company’s Form 10-K attached herewith in electronic form and incorporated by reference as part of Hope Bancorp’s 2018 Annual Report. Selected Performance Ratios Return on average assets (1) Return on average stockholders’ equity (2) Average stockholders’ equity to average assets Dividend payout ratio (3) Net interest spread (4) Net interest margin (5) Yield on interest earning assets (6) Cost of interest bearing liabilities (7) Efficiency ratio (8) Regulatory Capital Ratios Hope Bancorp: Common Equity Tier 1 Leverage Tier 1 risk-based Total risk-based Bank of Hope: Common Equity Tier 1 Leverage Tier 1 risk-based Total risk-based Asset Quality Data Nonaccrual loans 1.29% 9.92% 12.95% 37.58% 3.04% 3.53% 4.71% 1.67% 1.02% 7.31% 13.98% 48.54% 3.46% 3.80% 4.51% 1.05% 1.10% 8.47% 12.99% 40.86% 3.49% 3.75% 4.36% 0.87% 1.25% 10.11% 12.35% 36.21% 3.62% 3.88% 4.46% 0.84% 1.30% 10.44% 12.42% 31.53% 3.88% 4.13% 4.68% 0.80% 50.67% 48.67% 51.78% 48.43% 48.79% 11.44% 10.55% 12.21% 12.94% 13.63% 11.76% 13.63% 14.36% 12.30% 11.54% 13.11% 13.82% 12.95% 11.40% 12.95% 13.66% 12.10% 11.49% 12.92% 13.64% 12.75% 11.33% 12.75% 13.46% 12.08% 11.53% 12.67% 13.80% 12.56% 11.43% 12.56% 13.69% 12.96% 11.62% 13.64% 14.80% 13.44% 11.45% 13.44% 14.61% $ 53,286 $ 46,775 $ 40,074 $ 40,801 $ 46,353 Loans 90 days or more past due and still accruing (9) 1,529 407 305 375 361 Restructured loans (accruing) Total nonperforming loans Other real estate owned Total nonperforming assets 50,410 67,250 48,874 47,984 57,128 105,225 114,432 89,253 89,160 103,842 7,754 10,787 21,990 21,035 21,938 $ 112,979 $ 125,219 $ 111,243 $ 110,195 $ 125,780 Asset Quality Ratios Nonaccrual loans to loans receivable Nonperforming loans to loans receivable Nonperforming assets to total assets Non-performing assets to loans receivable and OREO Allowance for loan losses to loans receivable Allowance for loan losses to nonaccrual loans Allowance for loan losses to nonperforming loans Allowance for loan losses to nonperforming assets Net charge-offs (recoveries) to average gross loans 0.44% 0.87% 0.74% 0.93% 0.77% 0.42% 1.03% 0.88% 1.13% 0.76% 0.38% 0.85% 0.83% 1.05% 0.75% 0.65% 1.43% 1.39% 1.76% 1.22% 0.83% 1.87% 1.76% 2.25% 1.22% 173.70% 180.74% 197.99% 187.27% 146.18% 87.96% 81.92% 0.06% 73.88% 67.51% 0.11% 88.90% 71.32% 0.07% 85.70% 69.34% (0.01)% 65.25% 53.87% 0.23% (1) Net income divided by the average assets (2) Net income divided by the average stockholders’ equity (3) Dividends per share divided by earnings per share (4) Difference between the average yield earned on interest earning assets and the average rate paid on interest bearing liabilities (5) Net interest income expressed as a percentage of average interest earning assets (6) Interest income divided by the average interest earning assets (7) Interest expense divided by the average interest bearing liabilities (8) Noninterest expense divided by the sum of net interest income plus noninterest income (9) Excludes acquired credit impaired loans totaling $14.1 million, $18.1 million, $19.6 million, $12.2 million and $30.4 million as of December 31, 2018, 2017, 2016, 2015, and 2014, respectively 2018 ANNUAL REPORT / 6 2018 ANNUAL REPORT / 7  Left to right: q Kyu S. Kim Senior Executive Vice President & Eastern Regional President q Peter Koh Executive Vice President & Chief Credit Officer q Kevin S. Kim President & Chief Executive Officer q Alex Ko Executive Vice President & Chief Financial Officer q David P. Malone Senior Executive Vice President & Chief Operating Officer Bankers. Experts. Neighbors. Bankers. Experts. Neighbors. Our Commitment: To provide comprehensive financial solutions as EXPERTS. Beyond our initial core strengths in international trade finance, SBA and commercial real estate lending, Bank of Hope has become a diversified financial institution with a comprehensive offering of products and services in commercial lending, asset-based lending, residential mortgages, treasury management services, credit cards, equipment lease financing, foreign currency and wealth management. Products and services alone, however, are not sufficient to build a strong financial institution. With our specialized knowledge of industry trends and a strong Asset-Based Lending Commercial Lending Residential Mortgage WealthCredit Card FinanceLending SBA Lending SBA Lending Equipment Lease Financing Wealth Management CRE Lending Foreign Currency Finance Wealth Mortgage Warehouse Lending Treasury Management Solutions Int’l Trade Finance Our Commitment: To improve the value of our service as BANKERS. Our Mission is to be the first choice partner for our target platform for our customers to partner with to reach their corporate, middle market and small businesses by providing financial goals. a comprehensive set of business products and services, while being the premier bank for the target consumers in The value of our service as the banker of choice is underscored the communities we serve nationwide. by the higher levels of originations in 2018. For the full year, pulse on the competitive environment in our core increased 42% year-over-year, and residential mortgage communities, our bankers have the expertise and are originations increased 67% over 2017, underscoring the well equipped to provide the appropriate value-added enhanced platforms and expertise in these two areas products and services based on our customer’s specific of our business. needs and risk profile. 12th Largest SBA Lender in the Nation With a superior competitive position, marked by unrivaled leadership and expertise among our niche peers and unparalleled opportunity to cross-sell a comprehensive offering of products and services, Bank of Hope has a tremendous opportunity to establish deeper and Bank of Hope funded a record $3.01 billion in new loans to As a testament to our expertise, Bank of Hope has long stronger relationships with our existing customer base. It takes a good team of people to deliver on sound strategies, support the growth of its customers, representing a 16% and Bank of Hope has assembled the deepest bench of increase over 2017 production volumes. This production bankers in our community with significantly broader depth contributed to a more diversified mix of loans at year-end of experience and specialized skill sets. Together with our and was achieved through new business wins from both been established as one of the top SBA lenders in the Coupled with our greater stature in the banking community, nation over the last 20 years. The strong performance of this Bank of Hope is also well positioned to expand into newer business unit resulted in Bank of Hope being ranked 12th markets and provide banking services to a broader increased scale and lending limits, strong capital position and the mainstream and core customer base, as well as new in the nation in terms of lending volume for the SBA’s 2018 and larger customer base, contributing to the ongoing greater resources, Bank of Hope is proving to be a formidable relationships with higher profile, middle market businesses. fiscal year. Moreover, 2018 commercial lending volumes diversification of our loan and deposit portfolios. 2018 ANNUAL REPORT / 8 2018 ANNUAL REPORT / 9 Bankers. Experts. Neighbors. Our Commitment: To be good NEIGHBORS that foster growth for our customers and communities. As a community-based bank, Bank of Hope is committed to being a model corporate citizen and supporting its communities through various forms of investments and contributions. Since the establishment of the Hope Scholarship Foundation in 2001, Bank of Hope has supported the youth in its communities through $2.0 million in contributions to the Hope Scholarship Foundation. In partnership with the Asian & Pacific Island American Scholarship Fund (APIASF), scholarships were awarded to 52 students in 2018. The students were selected based on their demonstration of strong academic performance, leadership capabilities and a need for financial assistance as they were preparing to enroll in the 2018-2019 academic year of college. A widely Bank of Hope also continued to partner with United Way of Greater Los Angeles to support their community work focused on education, housing, health and financial stability for our most vulnerable neighbors, including students, low-income families, veterans and the homeless. Through an annual United Way Workplace Giving Campaign, our employees have the opportunity to make a direct impact in the communities in which they work and live. Employee pledges in 2018 totaled approximately $40,000, and underscoring Bank of Hope’s commitment to the community, a 100% corporate match was provided for every employee donation. Through various community reinvestment activities throughout the year, including the Volunteer Income Tax Assistance (VITA) program and Junior Achievement praised annual event, the program has been one of the most especially the Founders Cup tournament, which honors events, among others, our employees served nearly fulfilling ways that we have been able to give back to our the 13 visionary women who saw a need and established 1,200 CRA-qualified hours in 2018, which represented a customers and the greater communities which the the LPGA in 1950. Like the LPGA, Bank of Hope was 25% increase above the prior year and exemplified Bank Bank serves. founded by visionaries to serve the financial needs of of Hope’s commitment to supporting its communities. a growing immigrant population, and today it is the For the third consecutive year, Bank of Hope served as title representative bank of the Korean-American community. These activities exemplify Bank of Hope’s core values, sponsor to the LPGA Founders Cup. As one of the leading We are especially proud of the fact that the Founders which we believe are particularly important in building Asian-American banks in the United States, Bank of Hope Cup tournament proceeds are donated to support the and sustaining a strong culture of high performance and shares many similarities and values with the LPGA, and LPGA-USGA Girls Golf program. collaboration. And the acronym – IT FITS – was developed to reinforce the communication of these values. Corporate Social Responsibility Highlights CORE VALUES IT FITS I T F I T S Integrity Maintaining the highest standards of honesty and ethical behavior in our day-to-day interactions with others Transparency Being open and forthright in all of our business practices and communications Fairness Acting without bias in all of our business decisions Initiative Willingness to independently take action to resolve a problem, complete a task, or develop an innovative response to a business challenge Teamwork Working with our colleagues to achieve our common goals, recognizing that as a team we can achieve far more than any of us can as individuals Satisfaction Deliver high levels of satisfaction to our key stakeholders (customers, shareholders, employees, community) by meeting and exceeding their expectations * IT FITS is a registered trademark of Bank of Hope 1 OUT OF 2 1 out of 2 Bank of Hope branches located in low-to-moderate income areas 1200 HOURS Nearly 1200 hours of CRA-reportable volunteer hours in 2018 $3.0 BILLION $3.0 billion of loans funded in 2018 $500 MILLION $500 million of CRA-reportable small business lending in 2018 $10 MILLION $10 million of donations and sponsorships over last 10 years $2.0 MILLION $2.0 million of contributions to the Hope Scholarship Foundation since 2001 2018 ANNUAL REPORT / 10 2018 ANNUAL REPORT / 11 Scott Yoon-Suk Whang Chairman of the Board Founder and Chief Executive Officer Orange Circle Studios Kevin S. Kim President & Chief Executive Officer Hope Bancorp, Inc. and Bank of Hope Steven S. Koh Honorary Chairman Chairman Pacific Steel Corporation Chung Hyun Lee Former President NuArt International, Inc. Jin Chul Jhung Chairman & President Royal Imex, Inc. Donald D. Byun Former President Jay Dee, Inc. John R. Taylor Former Senior Audit Partner KPMG LLP Steven J. Didion General Partner and Portfolio Manager JCSD Partners, LP Daisy Y. Ha Attorney David P. Malone Executive Vice President & Chief Operating Officer Bank of Hope Dale S. Zuehls, PhD Principal Zuehls, Legaspi & Company William J. Lewis Former Executive Vice President & Chief Credit Officer East West Bank Jinho Doo Chief Executive Officer Key Capital Management, LLC James D. Hwang Former Chief Executive Officer Cal Net Tech Board of Directors Hope Bancorp, Inc. and Bank of Hope Hope Bancorp’s executive management team is supported by a distinguished group of leaders and corporate professionals from various market sectors and industry groups. The expertise of our Directors includes accounting, auditing and financial reporting, commercial banking, investment banking, investment management, legal, corporate management, strategic planning, business acquisitions, marketing, international operations, technology, retail and small to middle-market business operations. 2018 ANNUAL REPORT / 12 2018 ANNUAL REPORT / 13 Location Information Southern California Branches Koreatown City Center 3435 Wilshire Blvd, Suite 150 Los Angeles, CA 90010 T (213) 427-2222 Olympic-Hoover 2222 W Olympic Blvd Los Angeles, CA 90006 T (213) 386-2222 Olympic-Vermont 2727 W Olympic Blvd, Suite 104 Los Angeles, CA 90006 T (213) 235-3100 Olympic-Western 3267 W Olympic Blvd Los Angeles, CA 90006 T (213) 388-2222 Western-Beverly 253 N Western Ave Los Angeles, CA 90004 T (213) 381-2222 Western-9th 841 S Western Ave Los Angeles, CA 90005 T (213) 387-7070 Wilshire 3200 Wilshire Blvd Los Angeles, CA 90010 T (213) 427-1000 Wilshire-Harvard 3600 Wilshire Blvd, Suite 100-A Los Angeles, CA 90010 T (213) 351-5980 Wilshire-Manhattan 3832 Wilshire Blvd Los Angeles, CA 90010 T (213) 427-7711 Downtown LA Broadway 1205 S Broadway Los Angeles, CA 90015 T (213) 746-2222 Fashion Town 1300 S San Pedro St #200 Los Angeles, CA 90015 T (213) 746-3200 Maple 401 E 11th St #211 Los Angeles, CA 90015 T (213) 763-1800 San Pedro Mart 1100 S San Pedro St, Unit L21 Los Angeles, CA 90015 T (213) 745-5550 Wall1 1122 S Wall St Los Angeles, CA 90015 T (213) 763-1122 Huntington Park Huntington Park 6350 Pacific Blvd Huntington Park, CA 90255 T (323) 584-5950 South Bay Gardena 1655 W Redondo Beach Blvd Gardena, CA 90247 T (310) 327-2222 Torrance 2424 Sepulveda Blvd, Suite A Torrance, CA 90501 T (310) 328-5555 Fullerton/Cerritos Cerritos 17500 Carmenita Rd Cerritos, CA 90703 T (562) 926-2520 Fullerton 5300 Beach Blvd, Unit 101 Buena Park, CA 90621 T (714) 690-1400 Fullerton-Beach 5307 Beach Blvd Buena Park, CA 90621 T (714) 994-5000 La Palma 4875 La Palma Ave La Palma, CA 90623 T (562) 468-0900 Garden Grove/Irvine Garden Grove 9580 Garden Grove Blvd Suite 100 Garden Grove, CA 92844 T (714) 891-2222 Irvine-Culver 14429 Culver Dr Irvine, CA 92604 T (949) 777-3777 Rowland Heights/ Diamond Bar/Inland Empire Diamond Bar 2809 S Diamond Bar Blvd Diamond Bar, CA 91765 T (909) 718-2000 Inland 1040 S Mt. Vernon Ave, Suite A Colton, CA 92324 T (909) 370-2222 Rowland Heights-Colima 10911 Colima Rd Walnut, CA 91789 T (909) 979-8020 Rowland Heights-Nogales 1709 S Nogales St, Suite 100 Rowland Heights, CA 91748 T (626) 581-4020 Valley La Crescenta 3231 Foothill Blvd, Suite 205 La Crescenta, CA 91214 T (818) 551-0700 North Northridge 10147 Reseda Blvd Northridge, CA 91324 T (818) 534-3333 South Northridge 8401 Reseda Blvd Northridge, CA 91324 T (818) 773-6133 San Diego San Diego 4428 Convoy St, Suite #A-200 San Diego, CA 92111 T (858) 874-3333 Commercial Loan Centers Los Angeles Regional Office 3731 Wilshire Blvd, 3rd Floor Los Angeles, CA 90010 T (213) 639-1700 Buena Park Office 5254 Beach Blvd Buena Park, CA 90621 T (562) 345-3102 Broadway Office 1205 S Broadway Los Angeles, CA 90015 T (213) 763-7899 Gardena Office 1655 W Redondo Beach Blvd Gardena, CA 90247 T (310) 327-2222 Olympic-Hoover Office 2222 W Olympic Blvd, 2nd Floor Los Angeles, CA 90006 T (213) 386-2222 Olympic-Vermont Office 2727 W Olympic Blvd, Suite 104 Los Angeles, CA 90006 T (213) 235-3100 T (213) 235-3113 Wilshire Office 3200 Wilshire Blvd Los Angeles, CA 90010 T (213) 365-3303 SBA Department 3200 Wilshire Blvd, 7th Floor Los Angeles, CA 90010 T (877) 627-2722 Mortgage Banking Division 3200 Wilshire Blvd, 4th Floor Los Angeles, CA 90010 T (866) 972-2265 Gardena/Torrance LPO 1655 W Redondo Beach Blvd Gardena, CA 90247 T (310) 327-2222 Newport Beach LPO 24 Corporate Plaza, Suite 180 Newport Beach, CA 92660 T (949) 999-7900 South Bay LPO 2447 Pacific Coast Hwy, Suite 101 Hermosa Beach, CA 90254 T (866) 972-2265 Syndicated Lending Group 3200 Wilshire Blvd, 10th Floor Los Angeles, CA 90010 T (213) 427-6321 Credit Card Department 3200 Wilshire Blvd, 14th Floor Los Angeles, CA 90010 T (213) 355-2850 Commercial Equipment Lease Financing Department 3731 Wilshire Blvd, 3rd Floor Los Angeles, CA 90010 T (213) 805-8230 Investment Services Olympic-Western Office 3267 W Olympic Blvd Los Angeles, CA 90006 T (213) 201-3600 Northern California Branches Oakland 1939 Harrison St, Suite 110 Oakland, CA 94612 T (510) 302-0505 Silicon Valley 1102 E El Camino Real Sunnyvale, CA 94087 T (408) 557-2000 Premier Banking Group Commercial Loan Centers Olympic-Western Office 3267 W Olympic Blvd, 2nd Floor Los Angeles, CA 90006 T (213) 235-3113 NCA Region Loan Center 47102 Mission Falls Ct, Suite 100 Fremont, CA 94539 T (510) 550-8000 Premier Commercial Banking Division SBA Loan Production Offices Manhattan Office 16 W 32nd St New York, NY 10001 T (212) 279-2790 New Jersey Branches Edison1 1757 Lincoln Hwy Edison, NJ 08817 T (732) 839-0640 Fort Lee 172 Main St Fort Lee, NJ 07024 T (201) 585-7707 Palisades Park 303 Broad Ave Palisades Park, NJ 07650 T (201) 582-1100 Commercial Loan Centers Eastern Region Loan Center- New Jersey 211 Broad Ave Palisades Park, NJ 07650 T (201) 720-3900 Virginia Branches Annandale 7410 Little River Tpke Annandale, VA 22003 T (203) 354-4310 Centreville 13890 Braddock Rd Centreville, VA 20121 T (571) 321-6272 Alabama Branches Montgomery 1605 Eastern Blvd Montgomery, AL 36117 T (334) 277-4118 Annandale LPO 7535 Little River Tpke Suite 120-A Annandale, VA 22003 T (877) 627-2722 Atlanta LPO 3575 Koger Blvd, #380 Duluth, GA 30096 T (678) 380-0774 Dallas LPO 2727 Lyndon B Johnson Fwy Suite 110 Dallas, TX 75234 T (469) 522-4955 Denver LPO 2851 S Parker Rd, Suite 1120 Aurora, CO 80014 T (720) 535-5060 Houston LPO 10000 Harwin Dr Houston, TX 77036 T (281) 407-3353 New York LPO 162-05 Crocheron Ave Flushing, NY 11358 T (718) 412-9055 Northern California LPO 1939 Harrison St, Suite 190 Oakland, CA 94612 T (510) 899-6803 Portland LPO 111 SW 5th Ave, Suite 3160 Portland, OR 97204 T (503) 360-9193 Seattle LPO 400 112th Ave NE, Suite 150 Bellevue, WA 98004 T (425) 921-1098 Korea Seoul Representative Office 20F Glass Tower 534 Teheran-ro Gangnam-gu, Seoul, Korea 06181 T +82 (2) 3439-9120 1 Friday, June 21, 2019 will be the last day this branch will be open for business at the current location. Washington Branches Federal Way 31827-B Pacific Hwy S Federal Way, WA 98003 T (253) 941-9200 Lynnwood 17410 Hwy 99, Suite 120 Lynnwood, WA 98037 T (425) 743-7777 Lynnwood Market 3301 184th St SW, Suite 125 Lynnwood, WA 98037 T (425) 776-5111 Tacoma 8608 S Tacoma Way Lakewood, WA 98499 T (253) 984-7900 Commercial Loan Centers PNW Region Loan Center 3500 188th St SW, Suite 234 Lynnwood, WA 98037 T (425) 921-1261 Texas Branches Dallas 2237 Royal Ln Dallas, TX 75229 T (972) 919-9999 Fort Worth 7553 Boulevard 26 North Richland Hills, TX 76180 T (817) 514-4600 Houston 10000 Harwin Dr Houston, TX 77036 T (713) 774-0411 Houston-Spring 13890 Blalock Rd Houston, TX 77055 T (281) 407-3355 Commercial Loan Centers South Central Region Loan Center 2237 Royal Ln Dallas, TX 75229 T (972) 919-9999 Illinois Branches Arlington Heights 83 West Golf Rd Arlington Heights, IL 60005 T (847) 398-7700 Glenview 1645 N Milwaukee Ave Glenview, IL 60025 T (855) 329-2226 Niles 8504-A W Golf Rd Niles, IL 60714 T (847) 965-7373 Niles Market 801 Civic Center Dr, Suite 155 Niles, IL 60714 T (847) 965-2402 Skokie 5526 Touhy Ave Skokie, IL 60077 T (773) 736-1300 Commercial Loan Centers MW Region Loan Center 8504-A W Golf Rd Niles, IL 60714 T (847) 965-7373 New York Branches Bayside 209-07 Northern Blvd Bayside, NY 11361 T (718) 428-1606 Flushing-150th 150-24 Northern Blvd, Suite G4 Flushing, NY 11354 T (347) 625-2800 Flushing-Crocheron 162-05 Crocheron Ave Flushing, NY 11358 T (718) 888-0020 Flushing-Union 138-02 Northern Blvd Flushing, NY 11354 T (718) 886-6611 Great Neck 485 Great Neck Rd Great Neck, NY 11021 T (516) 466-4160 Manhattan 16 W 32nd St New York, NY 10001 T (212) 279-2790 Woodside 50-15 Roosevelt Ave Woodside, NY 11377 T (718) 335-2000 Commercial Loan Centers Regional Headquarters, Eastern Region 16 W 32nd St New York, NY 10001 T (212) 279-2790 Eastern Region Loan Center- Manhattan 308 Fifth Ave New York, NY 10001 T (212) 279-2790 2018 ANNUAL REPORT / 14 2018 ANNUAL REPORT / 15 Corporate Information Hope Bancorp, Inc. and Bank of Hope Board of Directors Executive Officers Independent Auditors Scott Yoon-Suk Whang Chairman of the Board Founder and Chief Executive Officer Orange Circle Studios Kevin S. Kim President & Chief Executive Officer Hope Bancorp, Inc. and Bank of Hope Steven S. Koh Honorary Chairman Chairman Pacific Steel Corporation Donald D. Byun Former President Jay Dee, Inc. Steven J. Didion General Partner and Portfolio Manager JCSD Partners, LP Jinho Doo Chief Executive Officer Key Capital Management, LLC Daisy Y. Ha Attorney James U. Hwang Former Chief Executive Officer Cal Net Technology Group Jin Chul Jhung Chairman & President Royal Imex, Inc. Chung Hyun Lee Former President NuArt International, Inc. David P. Malone Senior Executive Vice President & Chief Operating Officer Bank of Hope William J. Lewis Former Executive Vice President & Chief Credit Officer East West Bank John R. Taylor Former Senior Audit Partner KPMG LLP Dale S. Zuehls, PhD Principal Zuehls, Legaspi & Company Crowe LLP Los Angeles, California SEC Counsel Sheppard, Mullin, Richter & Hampton LLP Los Angeles, California Transfer Agent and Registrar If you have questions about stock certificates, or if you need to transfer shares or change the name in which they are registered, please contact: Computershare Trust Company, N.A. 250 Royall St Canton, MA 02021 T (877) 272-7494 www.computershare.com/investor Securities Listing Hope Bancorp, Inc.’s common stock is traded on the NASDAQ Global Select Market under the symbol HOPE. Investor Relations Angie Yang Senior Vice President, Director of Investor Relations & Corporate Communications T (213) 251-2219 angie.yang@bankofhope.com Offer of 10-K Report Shareholders may obtain without charge copies of Hope Bancorp’s 2018 Annual Report to the Securities and Exchange Commission on Form 10-K by sending a request to investor@bankofhope.com. Annual Meeting of Shareholders The Annual Meeting of Stockholders will be held at 10:30 a.m. Pacific Time on Thursday, May 23, 2019, at the Oxford Palace Hotel, 745 South Oxford Avenue, Los Angeles, California 90005. Corporate Headquarters 3200 Wilshire Blvd, 14th Floor Los Angeles, CA 90010 T (213) 639-1700 Kevin S. Kim President & Chief Executive Officer Hope Bancorp, Inc. and Bank of Hope David P. Malone Senior Executive Vice President, Chief Operating Officer Bank of Hope Kyu S. Kim Senior Executive Vice President, Eastern Regional President Bank of Hope Alex Ko Executive Vice President, Chief Financial Officer Hope Bancorp, Inc. and Bank of Hope Peter Koh Executive Vice President, Chief Credit Officer Bank of Hope Karen Craigmile Executive Vice President, Chief Internal Auditor Bank of Hope Daniel H. Kim Executive Vice President, Chief Strategy Officer Bank of Hope David W. Kim Executive Vice President, Chief Retail Banking Officer Bank of Hope Jason K. Kim Executive Vice President, Chief Commercial Banking Officer Bank of Hope Young K. Lee Executive Vice President, Chief Human Resource Officer Bank of Hope Janette Mah Executive Vice President, Chief Mortgage Banking Officer Bank of Hope Richard Marshall Executive Vice President, Credit Administration Bank of Hope Lisa K. Pai Executive Vice President, General Counsel Hope Bancorp, Inc. and Bank of Hope David Song Executive Vice President, Chief Business Banking Officer Bank of Hope Thomas Stenger Executive Vice President, Chief Risk Officer Bank of Hope Hung Van Executive Vice President, Chief Information Officer Bank of Hope HOPE 2018 Form 10-K To request printed copies of the Company’s 2018 Form 10-K, please send an email to investor@bankofhope.com. 2018 ANNUAL REPORT / 16 The Hope Bancorp 2018 Annual Report has not been reviewed, or confirmed for accuracy or relevance, by the Federal Deposit Insurance Corporation. 

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