LOS ANGELES–(BUSINESS WIRE)–Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its fourth quarter and full year ended December 31, 2022.
For the three months ended December 31, 2022, net income totaled $51.7 million, or $0.43 per diluted common share. This compares with net income of $53.7 million, or $0.45 per diluted common share, in the preceding third quarter and $51.6 million, or $0.43 per diluted common share, in the year-ago fourth quarter. Pre-provision net revenue(1) totaled $78.1 million for the 2022 fourth quarter, versus $82.6 million for the 2022 third quarter and $72.2 million for the 2021 fourth quarter.
For the full year ended December 31, 2022, net income totaled $218.3 million, or $1.81 per diluted common share, compared with $204.6 million, or $1.66 per diluted common share for the year ended December 31, 2021. Pre-provision net revenue for the full year 2022 increased 16.2% to $305.6 million from $263.1 million for 2021.
“Notwithstanding the operating environment becoming more challenging during the fourth quarter of 2022, we delivered solid financial results which reflect the benefits of the lower-risk, more diversified loan portfolio that we have built,” said Kevin S. Kim, Chairman, President and Chief Executive Officer. “Given the market’s expectations for the economic conditions to weaken further in 2023, we became even more selective with the loans that we added to the portfolio in terms of loan types and rates. New loan originations for the fourth quarter of 2022 totaled $793 million with commercial loans accounting for 54% of new production. While we had a slight decline in our loans receivable quarter-over-quarter, we closed the year with loans increasing more than 10% year-over-year, or greater than 12% when excluding SBA PPP loans. Total deposits increased 2% quarter-over-quarter, but the growth reflects increased balances of time deposits, representing in part the migration to higher-yielding deposit accounts in the current interest rate environment. The highlight of our fourth quarter was clearly the continued improvements we are experiencing in our asset quality with total nonperforming assets and total criticized loans decreasing 28% and 8%, respectively, quarter-over-quarter.
“While we are cognizant that 2023 will bring further challenges, we believe the progress we have made to strengthen and diversify our franchise over the past few years will serve us well with more sustainable earnings power. We are confident in our ability to continue strengthening franchise value during an economic downturn, while generating profitable growth that will further enhance long-term shareholder value,” said Kim.
Q4 2022 Highlights
- Loan originations totaled $793.4 million, representing a well-diversified mix of new loan production with new commercial loans accounting for 54% of total originations for the quarter.
- Loans receivable decreased 0.6% quarter-over-quarter, but increased 10.4% year-over-year. Excluding PPP, loans receivable decreased 0.5% quarter-over-quarter, but increased 12.2% year-over-year.
- Criticized loan balances decreased 8.0% quarter-over-quarter, or 47.7% year-over-year.
- Total nonperforming assets declined 28.4% quarter-over-quarter and represented 0.36% of total assets at year-end.
- Company recorded a provision for credit losses of $8.2 million, primarily to account for declines in certain projected macroeconomic factors.
- Net interest income decreased 1.7% quarter-over-quarter, but increased 12.9% year-over-year.
- Net interest margin decreased 13 basis points quarter-over-quarter, but increased 23 basis points year-over-year.
- Total deposits increased 1.5% quarter-over-quarter and 4.6% year-over-year.
- Total cost of deposits increased 83 basis points quarter-over-quarter and 139 basis points year-over-year, reflecting the impact of an aggregate increase of 425 basis points in the Federal Funds target rates during 2022.
- Pre-provision net revenue decreased 5.5% quarter-over-quarter, but increased 8.2% year-over-year.
______________
(1) Pre-provision net revenue, a non-GAAP financial measure, represents the sum of net interest income before provision (credit) for credit losses and noninterest income less noninterest expense. Management’s reasons and purposes for using this non-GAAP financial measure are set forth on Page 7 of this earnings release. A quantitative reconciliation of the most directly comparable GAAP to this non-GAAP financial measures is provided in the accompanying financial information on Table Page 10.
Financial Highlights
|
|
At or for the Three Months Ended |
||||||||||
|
(dollars in thousands, except per share data) (unaudited) |
12/31/2022 |
|
9/30/2022 |
|
12/31/2021 |
||||||
|
Net income |
$ |
51,703 |
|
|
$ |
53,748 |
|
|
$ |
51,623 |
|
|
Diluted earnings per share |
$ |
0.43 |
|
|
$ |
0.45 |
|
|
$ |
0.43 |
|
|
Pre-provision net revenue (“PPNR”) (1) |
$ |
78,113 |
|
|
$ |
82,627 |
|
|
$ |
72,179 |
|
|
Net interest income before provision for credit losses |
$ |
150,521 |
|
|
$ |
153,186 |
|
|
$ |
133,318 |
|
|
Net interest margin |
|
3.36 |
% |
|
|
3.49 |
% |
|
|
3.13 |
% |
|
Noninterest income |
$ |
12,110 |
|
|
$ |
13,355 |
|
|
$ |
13,097 |
|
|
Noninterest expense |
$ |
84,518 |
|
|
$ |
83,914 |
|
|
$ |
74,236 |
|
|
Net loans receivable |
$ |
15,241,181 |
|
|
$ |
15,330,626 |
|
|
$ |
13,812,193 |
|
|
Deposits |
$ |
15,738,801 |
|
|
$ |
15,502,209 |
|
|
$ |
15,040,450 |
|
|
Total cost of deposits |
|
1.62 |
% |
|
|
0.79 |
% |
|
|
0.23 |
% |
|
Nonaccrual loans(2) |
$ |
49,687 |
|
|
$ |
64,571 |
|
|
$ |
54,616 |
|
|
Nonperforming loans to loans receivable(2) |
|
0.44 |
% |
|
|
0.62 |
% |
|
|
0.78 |
% |
|
ACL to loans receivable |
|
1.05 |
% |
|
|
1.04 |
% |
|
|
1.01 |
% |
|
ACL to nonaccrual loans(2) |
|
326.76 |
% |
|
|
248.66 |
% |
|
|
257.34 |
% |
|
ACL to nonperforming assets(2) |
|
233.82 |
% |
|
|
165.55 |
% |
|
|
125.76 |
% |
|
Provision for credit losses |
$ |
8,200 |
|
|
$ |
9,200 |
|
|
$ |
1,500 |
|
|
Net charge offs (recoveries) |
$ |
6,402 |
|
|
$ |
219 |
|
|
$ |
(2,276 |
) |
|
Return on average assets (“ROA”) |
|
1.10 |
% |
|
|
1.17 |
% |
|
|
1.16 |
% |
|
Return on average equity (“ROE”) |
|
10.35 |
% |
|
|
10.58 |
% |
|
|
9.93 |
% |
|
ROA (PPNR) (1) |
|
1.66 |
% |
|
|
1.79 |
% |
|
|
1.62 |
% |
|
ROE (PPNR) (1) |
|
15.64 |
% |
|
|
16.26 |
% |
|
|
13.88 |
% |
|
Return on average tangible common equity (“ROTCE”)(1) |
|
13.54 |
% |
|
|
13.77 |
% |
|
|
12.85 |
% |
|
Noninterest expense / average assets |
|
1.79 |
% |
|
|
1.82 |
% |
|
|
1.67 |
% |
|
Efficiency ratio |
|
51.97 |
% |
|
|
50.39 |
% |
|
|
50.70 |
% |
|
(1) |
Pre-provision net revenue, ROA (PPNR), ROE (PPNR), and ROTCE are non-GAAP financial measures. Management’s reasons and purposes for using these non-GAAP financial measures are set forth on Table Page 10 of this earnings release. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10. |
|
(2) |
Excludes delinquent SBA loans that are guaranteed and currently in liquidation. |
Operating Results for the 2022 Fourth Quarter
Net interest income before provision for credit losses for the 2022 fourth quarter decreased 2% to $150.5 million from $153.2 million in the 2022 third quarter and increased 13% from $133.3 million in the 2021 fourth quarter. The Company attributed the quarter-over-quarter decrease predominantly to higher interest expense on deposits and borrowings, which more than offset higher levels of interest income due to increases in loan yields and the average balance of loans receivable.
The net interest margin for the 2022 fourth quarter decreased 13 basis points to 3.36% from 3.49% in the preceding third quarter as the increase in the cost of deposits outpaced the expansion of the yields on interest-earning assets. Compared with the year-ago fourth quarter, the net interest margin increased 23 basis points.
The weighted average yield on loans for the 2022 fourth quarter was 5.36%, up 71 basis points from 4.65% in the 2022 third quarter and up 141 basis points from the year-ago fourth quarter. The Company attributed the increases in weighted average yield on loans to the repricing of its variable rate loans following the increases in the market interest rates, as well as a significant increase in the average rate of new loans originated during the quarter and throughout the year.
The weighted average cost of deposits for the 2022 fourth quarter increased by 83 basis points to 1.62% from 0.79% in the 2022 third quarter, reflecting a 119 basis point increase in the cost of interest bearing deposits due to the accelerated pace of Federal Funds target rate hikes in the second half of the year. Compared with the year-ago fourth quarter, the weighted average cost of deposits for the 2022 fourth quarter increased 139 basis points from 0.23%, reflecting a 205 basis point increase in the cost of interest bearing deposits.
Noninterest income for the 2022 fourth quarter decreased 9% to $12.1 million from $13.4 million in the 2022 third quarter. Quarter-over-quarter reductions in the net gains on sales of SBA loans, service fees on deposit accounts and other income and fees were partially offset by an increase in net gains on sales of other loans. The decrease in other income and fees largely reflects lower swap fee income versus the preceding third quarter. During the 2022 fourth quarter, the Company sold $41.2 million in the guaranteed portion of SBA 7(a) loans and $3.5 million in retail mortgage loans, compared with $57.8 million and $3.7 million, respectively, sold in the preceding third quarter. Noninterest income for the 2021 fourth quarter totaled $13.1 million.
Noninterest expense for the 2022 fourth quarter increased 1% to $84.5 million from $83.9 million for the preceding third quarter and increased 14% from $74.2 million for the year-ago fourth quarter. The quarter-over-quarter increase largely reflects higher costs associated with earnings credit rebates. The year-over-year increase is attributed to higher salaries and employee benefits and higher costs of earnings credit rebates.
Salaries and employee benefits expense for the 2022 fourth quarter decreased to $52.7 million from $53.2 million in the preceding third quarter, largely reflecting a decrease in incentive compensation expense. Salaries and employee benefits expense for the 2021 fourth quarter totaled $44.6 million. The Company’s FTE count was 1,549 at December 31, 2022, 1,539 at September 30, 2022 and 1,476 at December 31, 2021.
Earnings credit rebates for the 2022 fourth quarter increased to $5.0 million from $4.7 million in the 2022 third quarter and $555,000 in the 2021 fourth quarter, as a result of the increases in the Federal Funds rates.
The Company’s efficiency ratio for the 2022 fourth quarter was 51.97%, compared with 50.39% in the preceding third quarter and 50.70% in the year-ago fourth quarter. Noninterest expense as a percentage of average assets was 1.79% for the 2022 fourth quarter, compared with 1.82% for the 2022 third quarter and 1.67% for the 2021 fourth quarter.
The effective tax rate for the 2022 fourth quarter was 26.1%, compared with 26.8% for the preceding third quarter and 27.0% for the year-ago fourth quarter.
Balance Sheet Summary
New loan originations during the 2022 fourth quarter totaled $793.4 million, compared with $1.35 billion in the preceding third quarter and $1.24 billion in the 2021 fourth quarter.
Following are the components of new loan production for the quarters ended December 31, 2022, September 30, 2022, and December 31, 2021.
|
|
For the Three Months Ended |
|||||||
|
(dollars in thousands) (unaudited) |
12/31/2022 |
|
9/30/2022 |
|
12/31/2021 |
|||
|
Commercial real estate |
$ |
302,983 |
|
$ |
500,826 |
|
$ |
573,978 |
|
Commercial |
|
424,340 |
|
|
732,341 |
|
|
532,634 |
|
SBA |
|
28,825 |
|
|
47,428 |
|
|
54,848 |
|
Residential mortgage |
|
36,720 |
|
|
67,079 |
|
|
81,325 |
|
Consumer |
|
555 |
|
|
1,020 |
|
|
70 |
|
Total new loan originations |
$ |
793,423 |
|
$ |
1,348,694 |
|
$ |
1,242,855 |
At December 31, 2022, loans receivable decreased 0.6% to $15.40 billion from $15.49 billion at September 30, 2022, but increased 10.4% from $13.95 billion at December 31, 2021.
Following is the loan portfolio composition and percentage of total loans as of December 31, 2022, September 30, 2022 and December 31, 2021:
|
(dollars in thousands) |
12/31/2022 |
|
9/30/2022 |
|
12/31/2021 |
||||||||||||
|
(unaudited) |
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
||||||
|
Commercial loans |
$ |
5,109,532 |
|
33.2 |
% |
|
$ |
5,124,421 |
|
33.1 |
% |
|
$ |
4,208,674 |
|
30.2 |
% |
|
Real estate loans |
|
9,414,580 |
|
61.1 |
% |
|
|
9,504,893 |
|
61.3 |
% |
|
|
9,105,931 |
|
65.3 |
% |
|
Consumer and other loans |
|
879,428 |
|
5.7 |
% |
|
|
861,873 |
|
5.6 |
% |
|
|
638,138 |
|
4.5 |
% |
|
Loans receivable |
$ |
15,403,540 |
|
100.0 |
% |
|
$ |
15,491,187 |
|
100.0 |
% |
|
$ |
13,952,743 |
|
100.0 |
% |
Total deposits at December 31, 2022 increased 1.5% to $15.74 billion from $15.50 billion at September 30, 2022, largely reflecting an increase in time deposits, and increased 4.6% year-over-year from $15.04 billion at December 31, 2021. Quarter-over-quarter, noninterest bearing demand and money market and NOW deposits decreased 13.3% and 4.6%, respectively, but these decreases were more than offset by a 34.6% increase in time deposits. On a year-over-year basis, noninterest bearing demand deposits at December 31, 2022 decreased 15.7%, money market and NOW deposits decreased 9.1%, and time deposits increased 79.0%.
Following is the deposit composition as of December 31, 2022, September 30, 2022 and December 31, 2021:
|
(dollars in thousands) (unaudited) |
12/31/2022 |
|
9/30/2022 |
|
12/31/2021 |
|||
|
Noninterest bearing demand deposits |
$ |
4,849,493 |
|
$ |
5,590,952 |
|
$ |
5,751,870 |
|
Money market and other |
|
5,615,784 |
|
|
5,885,093 |
|
|
6,178,850 |
|
Saving deposits |
|
283,464 |
|
|
317,841 |
|
|
321,377 |
|
Time deposits |
|
4,990,060 |
|
|
3,708,323 |
|
|
2,788,353 |
|
Total deposit balances |
$ |
15,738,801 |
|
$ |
15,502,209 |
|
$ |
15,040,450 |
Following is the deposit composition as a percentage of total deposits and a breakdown of cost of deposits as of and for the quarters ended December 31, 2022, September 30, 2022 and December 31, 2021:
|
|
Deposit Breakdown |
|
Cost of Deposits |
||||||||||||||
|
(unaudited) |
12/31/2022 |
|
9/30/2022 |
|
12/31/2021 |
|
Q4 2022 |
|
Q3 2022 |
|
Q4 2021 |
||||||
|
Noninterest bearing demand deposits |
30.8 |
% |
|
36.1 |
% |
|
38.3 |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|
Money market and other |
35.7 |
% |
|
38.0 |
% |
|
41.1 |
% |
|
2.42 |
% |
|
1.24 |
% |
|
0.37 |
% |
|
Saving deposits |
1.8 |
% |
|
2.0 |
% |
|
2.1 |
% |
|
1.29 |
% |
|
1.18 |
% |
|
1.18 |
% |
|
Time deposits |
31.7 |
% |
|
23.9 |
% |
|
18.5 |
% |
|
2.53 |
% |
|
1.27 |
% |
|
0.34 |
% |
|
Total deposit balances |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
1.62 |
% |
|
0.79 |
% |
|
0.23 |
% |
Allowance for Credit Losses
For the 2022 fourth quarter, the Company recorded a provision for credit losses of $8.2 million, compared with $9.2 million in the preceding third quarter and $1.5 million in the 2021 fourth quarter.
Following is the allowance for credit losses and allowance coverage ratios as of December 31, 2022, September 30, 2022 and December 31, 2021:
|
(dollars in thousands) (unaudited) |
12/31/2022 |
|
9/30/2022 |
|
12/31/2021 |
||||||
|
Allowance for credit losses |
$ |
162,359 |
|
|
$ |
160,561 |
|
|
$ |
140,550 |
|
|
Allowance for credit loss/loans receivable |
|
1.05 |
% |
|
|
1.04 |
% |
|
|
1.01 |
% |
|
Allowance for credit losses/nonperforming loans (1) |
|
242.26 |
% |
|
|
168.11 |
% |
|
|
128.75 |
% |
|
(1) |
Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $9.8 million, $9.9 million and $19.5 million at December 31, 2022, September 30, 2022 and December 31, 2021, respectively. |
Credit Quality
Following are the components of nonperforming assets as of December 31, 2022, September 30, 2022 and December 31, 2021:
|
(dollars in thousands) (unaudited) |
12/31/2022 |
|
9/30/2022 |
|
12/31/2021 |
|||
|
Loans on nonaccrual status (1) |
$ |
49,687 |
|
$ |
64,571 |
|
$ |
54,616 |
|
Delinquent loans 90 days or more on accrual status |
|
401 |
|
|
5,306 |
|
|
2,131 |
|
Accruing troubled debt restructured loans |
|
16,931 |
|
|
25,631 |
|
|
52,418 |
|
Total nonperforming loans |
|
67,019 |
|
|
95,508 |
|
|
109,165 |
|
Other real estate owned |
|
2,418 |
|
|
1,480 |
|
|
2,597 |
|
Total nonperforming assets |
$ |
69,437 |
|
$ |
96,988 |
|
$ |
111,762 |
|
(1) |
Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $9.8 million, $9.9 million and $19.5 million at December 31, 2022, September 30, 2022 and December 31, 2021, respectively. |
Total nonperforming assets at December 31, 2022 decreased 28.4% to $69.4 million from $97.0 million at September 30, 2022 and decreased 37.9% from $111.8 million at December 31, 2021.
Following are net charge offs (recoveries) and net charge offs (recoveries) to average loans receivable on an annualized basis for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021:
|
|
For the Three Months Ended |
||||||||||
|
(dollars in thousands) (unaudited) |
12/31/2022 |
|
9/30/2022 |
|
12/31/2021 |
||||||
|
Net charge offs (recoveries) |
$ |
6,402 |
|
|
$ |
219 |
|
|
$ |
(2,276 |
) |
|
Net charge offs (recoveries)/average loans receivable (annualized) |
|
0.17 |
% |
|
|
0.01 |
% |
|
|
(0.07 |
)% |
Following are the components of criticized loan balances as of December 31, 2022, September 30, 2022 and December 31, 2021:
|
(dollars in thousands) (unaudited) |
12/31/2022 |
|
9/30/2022 |
|
12/31/2021 |
|||
|
Special mention |
$ |
157,263 |
|
$ |
79,399 |
|
$ |
257,194 |
|
Substandard |
|
104,073 |
|
|
204,713 |
|
|
242,397 |
|
Total criticized loans |
$ |
261,336 |
|
$ |
284,112 |
|
$ |
499,591 |
At December 31, 2022, total criticized loans decreased 8.0% quarter-over-quarter and decreased 47.7% year-over-year, representing the lowest level experienced by the Company since 2011.
Capital
At December 31, 2022, the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. Following are capital ratios for the Company as of December 31, 2022, September 30, 2022 and December 31, 2021:
|
(unaudited) |
12/31/2022 |
|
9/30/2022 |
|
12/31/2021 |
|
Minimum Guideline for “Well-Capitalized” Bank |
|
Common Equity Tier 1 Capital |
10.55% |
|
10.32% |
|
11.03% |
|
6.50% |
|
Tier 1 Leverage Ratio |
10.15% |
|
10.25% |
|
10.11% |
|
5.00% |
|
Tier 1 Risk-Based Ratio |
11.15% |
|
10.92% |
|
11.70% |
|
8.00% |
|
Total Risk-Based Ratio |
11.97% |
|
11.72% |
|
12.42% |
|
10.00% |
Following are tangible common equity (“TCE”) per share and TCE as a percentage of tangible assets as of December 31, 2022, September 30, 2022 and December 31, 2021:
|
(unaudited) |
12/31/2022 |
|
9/30/2022 |
|
12/31/2021 |
|
Tangible common equity per share (1) |
$12.96 |
|
$12.60 |
|
$13.51 |
|
Tangible common equity to tangible assets (1) |
8.29% |
|
8.09% |
|
9.31% |
|
(1) |
Tangible common equity represents common equity less goodwill and net other intangible assets. Tangible common equity per share represents tangible common equity divided by the number of shares issued and outstanding. Tangible assets represent total assets less goodwill and net other intangible assets. Tangible common equity to tangible assets is the ratio of tangible common equity over tangible assets. Tangible common equity, tangible common equity per share, tangible assets and tangible common equity to tangible assets are non-GAAP financial measures. Management’s reasons and purposes for using these non-GAAP financial measures are set forth in the following section. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 10. |
Non-GAAP Financial Metrics
This news release contains certain non-GAAP financial measure disclosures, including pre-provision net revenue, ROA (PPNR), ROE (PPNR), tangible common equity, tangible common equity per share, tangible assets and tangible common equity to tangible assets. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding its operational performance and the Company’s and the Bank’s capital levels and has included these figures in response to market participant interest in these financial metrics. A reconciliation of the most directly comparable GAAP to non-GAAP financial measures is provided in the accompanying financial information on Table Page 10.
Investor Conference Call
The Company previously announced that it will host an investor conference call on Tuesday, January 24, 2023 at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review unaudited financial results for its fourth quarter and full year ended December 31, 2022. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through January 31, 2023, replay access code 9204177.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. is the holding company of Bank of Hope, the first and only super regional Korean American bank in the United States with $19.16 billion in total assets as of December 31, 2022. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, Bank of Hope operates 54 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama and Georgia. The Bank also operates SBA loan production offices in Seattle, Denver, Dallas, Atlanta, Portland, New York City, Northern California and Houston; commercial loan production offices in Northern California and Seattle; residential mortgage loan production offices in Southern California; and a representative office in Seoul, Korea. Bank of Hope specializes in core business banking products for small and medium-sized businesses, with an emphasis in commercial real estate and commercial lending, SBA lending and international trade financing. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to bankofhope.com. By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.
Forward-Looking Statements
Some statements in this news release 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,” “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 risks and uncertainties. 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; regulatory risks associated with current and future regulations; and the COVID-19 pandemic and its impact on our financial position, results of operations, liquidity, and capitalization.
Contacts
Angie Yang
SVP, Director of Investor Relations & Corporate Communications
213-251-2219
[email protected]
