HOPE BANCORP INCHOPE
HOPE BANCORP INC New Standards Disclosure
Accounting Pronouncements Adopted
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. ASU 2023-09 requires public business entities to disclose in the rate reconciliation table additional categories of information about federal, state, and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. It also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state, and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold. This guidance is effective for public business entities for fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-09 prospectively effective for fiscal year 2025 and the adoption did not have a material impact on the Company’s Consolidated Financial Statements.
In November 2025, the FASB issued ASU 2025-08, “Financial Instruments—Credit Losses (Topic 326): Purchased Loans”, which amends ASC Topic 326 to expand the application of the gross-up approach to non-PCD loans, including those acquired in business combinations. The gross-up approach refers to the practice of recording certain purchased assets at the purchase price plus the Day 1 ACL. Prior to the issuance of ASU 2025-08, the gross-up approach was only applied to loans with more-than-insignificant credit deterioration since origination, otherwise called PCD loans. ASU 2025-08 aligns the accounting for non-PCD loans that meet the criteria of newly defined “purchased seasoned loans” with the treatment of PCD loans. The Company early adopted ASU 2025-08 prospectively, effective January 1, 2025. The total one-time impact of adopting ASU 2025-08 was $3.1 million in additional net income. In addition to this one-time net positive impact to income, there is an ongoing reduction to discount accretion income for purchased seasoned loans acquired from Territorial due to the reduction of the initial accretable discount (by the Day 1 ACL amount).
Pending Accounting Pronouncements
In November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements”. The purpose of ASU 2025-09 is to enable entities to better achieve and maintain hedge accounting for highly effective economic hedges. Primary changes include replacing the "shared risk" requirement for cash flow hedge groups with a "similar risk" exposure requirement and expanding component hedging for nonfinancial assets. The standard is effective for public business entities for fiscal years beginning after December 15, 2026, including interim periods within those years, with early adoption permitted. The guidance can be applied on a prospective basis, although flexible transition approaches exist for certain existing hedges. The Company is currently evaluating the impact that the adoption of this guidance will have on its Consolidated Financial Statements.
In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements”, which improves the guidance in Topic 270, Interim Reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. This ASU also provides additional guidance on what disclosures should be provided in interim reporting periods. It adds to Topic 270 a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, for public business entities. Early adoption is permitted for all entities. The amendments in this ASU can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The impact of ASU 2025-11 is not expected to be material to the Company’s Consolidated Financial Statements.
In December 2025, the FASB issued ASU 2025-12, “Codification Improvements”, which is a part of the FASB's standing evergreen project to address technical corrections, unintended applications, and minor clarifications within the Codification. It addresses specific issues across a broad range of topics to improve the consistent application of U.S. GAAP. ASU 2025-12 is effective for annual reporting periods beginning after December 15, 2026, including interim periods. Early adoption is permitted on an issue-by-issue basis. Transition provisions vary, with most issues allowing prospective or retrospective application, except for EPS, which requires retrospective application. The impact of implementing ASU 2025-12 is not expected to be material to the Company’s Consolidated Financial Statements.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | May 18, 2017 | |
| 2015 | Mar 4, 2016 | |
About New Standards Disclosures
New accounting standards disclosures describe recently adopted pronouncements and those not yet effective, along with management's assessment of their expected impact. This section provides an early warning system for upcoming changes to how a company reports its financial results, often years before the new rules take effect.
Key signals: when management describes a not-yet-adopted standard's impact as "material" or "still being evaluated," it signals potential significant changes to reported metrics upon adoption. Watch for standards that affect a company's core operations — for example, revenue recognition changes for software companies or lease accounting changes for retailers with large store footprints. The transition method chosen (full retrospective versus modified retrospective) affects comparability with prior periods. Companies that delay adoption to the latest permitted date may be struggling with implementation complexity. Compare the disclosed impact assessments against peers in the same industry to gauge whether management's expectations are reasonable.