Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

The following presents the unconsolidated condensed statements of financial condition for only the parent company, Hope Bancorp, as of December 31, 2022 and 2021:

STATEMENTS OF FINANCIAL CONDITION

	December 31,
	2022		2021
	(Dollars in thousands)
ASSETS:
Cash and cash equivalents	$	62,380	$	21,006
Other assets	11,689		11,382
Investment in bank subsidiary	2,270,280		2,383,098
Total assets	$	2,344,349	$	2,415,486
LIABILITIES:
Convertible notes, net	$	217,148	$	216,209
Subordinated debentures, net	106,565		105,354
Accounts payable and other liabilities	1,308		940
Total liabilities	325,021		322,503
Stockholders’ equity	2,019,328		2,092,983
Total liabilities and stockholders’ equity	$	2,344,349	$	2,415,486

The following presents the unconsolidated condensed statements of income for only the parent company, Hope Bancorp, for the years ended December 31, 2022, 2021 and 2020:

STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Interest income	$	—	$	—	$	—
Interest expense	(11,330)		(9,186)		(14,147)
Noninterest income	—		—		—
Noninterest expense	(7,212)		(5,633)		(5,316)
Dividend from subsidiary, net	133,000		128,000		96,000
Equity in undistributed earnings of subsidiary	98,354		87,025		29,781
Income before income tax benefit	212,812		200,206		106,318
Income tax benefit	5,465		4,366		5,197
Net income	218,277		204,572		111,515
Other comprehensive (loss) income, net of tax	(219,445)		(44,165)		23,604
Comprehensive (loss) income	$	(1,168)	$	160,407	$	135,119

The following presents the unconsolidated condensed statements of cash flows for only the parent company, Hope Bancorp, for the years ended December 31, 2022, 2021 and 2020:

STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	218,277	$	204,572	$	111,515
Adjustments to reconcile net income to net cash from operating activities:
Amortization and capitalization	2,150		2,115		6,250
Stock-based compensation expense	502		141		201
Change in other assets	(307)		(326)		(1,194)
Change in accounts payable and other liabilities	368		25		(440)
Equity in undistributed earnings of bank subsidiary	(98,354)		(87,025)		(29,781)
Net cash from operating activities	122,636		119,502		86,551
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of equity investments	—		—		—
Net cash from investing activities	—		—		—
CASH FLOWS USED IN FINANCING ACTIVITIES:
Issuance of additional stock pursuant to various stock plans	531		—		—
Purchase of treasury stock	(14,667)		(50,000)		(36,180)
Payments of cash dividends	(67,126)		(68,666)		(69,182)
Net cash used in financing activities	(81,262)		(118,666)		(105,362)
NET CHANGE IN CASH AND CASH EQUIVALENTS	41,374		836		(18,811)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	21,006		20,170		38,981
CASH AND CASH EQUIVALENTS, END OF YEAR	$	62,380	$	21,006	$	20,170