Hope Bancorp, Inc. reported a net income of $99.6 million for the fiscal year ending December 31, 2024, a decrease of 25% from $133.7 million in 2023. The diluted earnings per share fell to $0.82 from $1.11 in the previous year. The company's total assets decreased by 10.9% to $17.05 billion, down from $19.13 billion in 2023. This decline was primarily attributed to a significant reduction in cash and cash equivalents, which dropped to $458.2 million from $1.93 billion, largely due to the repayment of $1.70 billion in Federal Reserve Bank borrowings.
In terms of revenue, Hope Bancorp's interest income decreased by 9% to $954 million, while interest expense rose slightly to $526.1 million, resulting in a net interest income of $427.9 million, down 19% from the previous year. The provision for credit losses also saw a notable decrease, falling to $17.3 million from $31.6 million in 2023. Noninterest income increased by 3% to $47.1 million, driven by higher net gains on sales of Small Business Administration (SBA) loans and branch sales.
Strategically, the company is pursuing a merger with Territorial Bancorp Inc., which was announced in April 2024. This merger is expected to enhance Hope Bancorp's market presence, particularly in Hawaii, where Territorial operates. The company also completed the sale of two branches in Virginia, which is part of its strategy to streamline operations and focus on core markets. As of December 31, 2024, Hope Bancorp maintained a workforce of 1,244 full-time equivalent employees, consistent with the previous year.
Operationally, the loan portfolio decreased to $13.62 billion, with commercial real estate loans comprising 63% of total loans. The allowance for credit losses was $150.5 million, representing 1.11% of loans receivable. Nonperforming assets increased to $90.8 million, up from $45.5 million in 2023, primarily due to a rise in nonaccrual loans. Looking ahead, the company anticipates continued challenges in the economic environment, particularly related to interest rates and market conditions, which may impact its financial performance and strategic initiatives.
About HOPE BANCORP INC
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