Hope Bancorp, Inc. (HOPE) Earnings Call Transcript & Summary

Hello and welcome to the Virtual 2024 Annual Meeting of Stockholders of Hope Bancorp, Inc. Please note that this meeting is being recorded. [Operator Instructions]. It is now my pleasure to turn this meeting over to the company's Chairman, President and CEO, Mr. Kevin S. Kim. Mr. Kim, the floor is yours.

Thank you. Good morning, fellow stockholders, ladies and gentlemen. It is my pleasure to welcome you to the Hope Bancorp Inc. 2024 Annual Meeting of Stockholders. This year's annual meeting is once again being conducted solely online via a live webcast. Here with me today, we have Ms. Julianna Balicka, our Chief Financial Officer; Ms. Angelee Harris, our General Counsel; and Ms. Angie Yang, our Director of Investor Relations and Corporate Communications. On behalf of my colleagues and the Board of Directors, I would like to thank all of our stockholders, customers and those within our communities for your overwhelming trust and patronage throughout the years. Thanks to your gracious support, we continue to stand proud as one of the leading Asian-American banks in the nation. All of our director nominees are present today, participating virtually through our online platform and let me introduce them briefly. Mr. Scott Yoon-Suk Whang, s our Lead Independent Director. Mr. Whang also serves as Chair of our Nomination and Governance Committee. Mr. Steven Koh is our Honorary Chairman of the Board. Mr. Donald Byun is an Independent Director and Chair of Bank of Hope's Directors Loan Committee. Mr. Jinho Doo is an Independent Director. Ms. Daisy Ha is an Independent Director. Mr. Joon Kyung Kim is an Independent Director and Chair of our Audit Committee. Mr. William Lewis is an Independent Director and Chair of our Board Risk Committee. Mr. David Malone is a Director. Ms. Lisa Pai is an Independent Director. Mr. Dale Zuehls is an Independent Director and was recently appointed as our Deputy Lead Independent Director; and also he chairs our Human Resources and Compensation Committee. Also present for the meeting is Ms. Rachel Lee, who is independent and is standing for election today. The composition of these director nominees embodies a diverse group with a broad range of backgrounds and experience and professional acumen that we believe will contribute to effective decision-making, oversight and risk management that is required of the Board. As a group, we are committed to serving the best interest of our company and our stockholders. Together with the leadership of our executive management team, I am confident in our ability to lead the company to greater heights. I would also like to recognize Ms. Eve Rogers and Ms. Megan Rangen from Crowe LLP, our independent registered public accounting firm, who are participating virtually. It is now 10:05 a.m., Pacific Time. And as Chairman, President and CEO of Hope Bancorp, I would now like to call the Hope Bancorp 2024 Annual Meeting of Stockholders to order. At this point, I will ask Ms. Angelee Harris, who will serve as Secretary of this annual meeting, to conduct the formal business of the meeting.

Thank you, Chairman, Kim. Please be advised that following the formal business of the company's 2024 Annual Meeting of Stockholders, we will conduct a question-and-answer session. As noted by the operator at the beginning of this meeting, you may submit questions or comments at any time by clicking on the message icon. Ms. Angie Yang has been selected by the Board to serve as the Inspector of Elections for the meeting. As such, Ms. Yang will count and certify the votes cast by proxy or in person via the Internet for the purpose of quorum and voting. It is currently 10:35 a.m., Pacific Time, and I declare that the polls are now officially open. [Voting]

We will close the polls in a few minutes when all online votes cast have been received and counted. Most of you have already voted online or sent in your votes by proxy. If you have no intention to change your vote, no further action is required. If, however, you have not yet voted and wish to vote in person via the Internet at the meeting today, you may do so now by clicking on the link provided online. You must have logged in with your control number included in your notice or your proxy card to cast your vote online. If you wish to change your vote, you may also do so by clicking on the link provided online. The minutes of last year's annual meeting as well as a list of stockholders entitled to vote at this meeting are available to any stockholder that wishes to inspect either document. To obtain access to either the minutes of the 2023 Annual Meeting or the list of stockholders for this meeting, please send an e-mail request to me at angelee.harris@bankofhope.com. We have not received notice from any stockholders as required under our bylaws of any other matter to be considered at today's meeting. Therefore, no other proposals may be properly introduced by stockholders at the meeting. It is now 10:37 a.m., Pacific Time and the online polls for voting will now be closed. This meeting is being held pursuant to the call of the Board of Directors and the legal notice of the meeting, which was included as part of the notice of Internet availability of proxy materials and was delivered on or about April 12, 2024, along with the proxy card to each of our stockholders of record as of March 25, 2024, the record date for this year's annual meeting. A copy of the legal notice and the affidavit of mailing will be incorporated into the minutes of this meeting. All stockholders as of the meeting record date of March 25, 2024, are entitled to vote today. We now need to establish that there is a quorum to start this meeting. A quorum is established by the presence at the meeting, either by proxy or in person via the Internet of more than 50% of the outstanding shares. Ms. Yang, would you please report on the quorum?

Thank you, Ms. Harris. As the Inspector of Elections, I certify the following: the total number of outstanding shares as of March 25, 2024 and entitled to vote at this annual meeting is 120,610,029 and the preliminary count of shares voting at this meeting, either in person via Internet or cast by proxy, is at least 107,913,818 shares, representing approximately 89.5% of total shares outstanding and entitled to vote. Accordingly, we have a quorum for the transaction of business at today's meeting.

Thank you. Next, we will proceed with voting on each of the proposals that were described in the proxy statement. The first proposal is the election of directors. The director nominees elected at this meeting will serve on the company's Board until the 2025 Annual Meeting of Stockholders and until their successors are duly elected and qualified. Ms. Yang, please report on the votes for this proposal.

I certify that the following 12 director nominees have received the highest number of votes, which account for an affirmative majority of votes cast: Mr. Kevin Kim, Mr. Scott Yoon-Suk Whang, Mr. Steven Koh, Mr. Donald Byun, Mr. Jinho Doo, Ms. Daisy Ha, Mr. Joon Kyung Kim, Mr. William Lewis, Mr. David Malone, Ms. Lisa Pai, Mr. Dale Zuehls and Ms. Rachel Lee. Accordingly, all 12 director nominees have been elected to the Board of Directors to serve until the 2025 Annual Meeting of Stockholders.

Thank you, Ms. Yang. The second proposal is the ratification of Crowe LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024. Ms. Yang, could you please report on the votes for this proposal?

I certify based on preliminary reports from our tabulating agent, we received 107,495,426 votes in favor of proposal 2, equaling approximately 99.6% of shares present and entitled to vote at this meeting. Accordingly, the selection of Crowe LLP has been ratified by the stockholders.

Thank you, Ms. Yang. The third proposal is the approval and adoption of an amendment to the company's certificate of incorporation to increase the authorized shares of common stock from 150 million to 300 million. Ms. Yang, please report on the votes for this proposal.

I certify based on preliminary reports from our tabulating agent, we received 99,610,351 votes in favor of proposal 3, equaling more than 50% of the company's outstanding shares. Accordingly, the approval and adoption of an amendment to the company's Certificate of Incorporation to increase the authorized shares of common stock from 150 million to 300 million has been approved by the stockholders.

Thank you, Ms. Yang. The fourth proposal is the approval and adoption of an amendment to the company's Certificate of Incorporation to add employees and agents to the indemnification provision. Ms. Yang, please report on the votes for this proposal.

I certify based on preliminary reports from our tabulating agent, we received 99,614,819 votes in favor of proposal 4, equaling more than 50% of the company's outstanding shares. Accordingly, the approval and adoption of an amendment to the company's Certificate of Incorporation to add employees and agents to the indemnification provision has been approved by the stockholders.