Hope Bancorp (HOPE) 2026 財年第三季財報電話會議：營收成長與 MANUBANK 展望

重點摘要

• Hope Bancorp 公布 2026 年第三季營收為 1.57 億美元，季增 7%、年增 11%，主要受惠於貸款成長、淨利息收益率擴張及非利息收入增加，帶動正向營運槓桿。
• 稀釋後每股盈餘 (EPS) 為 0.28 美元，高於 2026 年第二季的 0.26 美元及 2025 年第三季的 0.24 美元。若扣除併購相關成本，稀釋後 EPS 為 0.29 美元。
• 淨利息收益率提升至 3.02%，季增 6 個基點、年增 13 個基點，反映出獲利資產殖利率提升及資金結構改善。
• 資產品質有所改善。不良資產降至 1.08 億美元，不良資產比率降至 0.57%，年化淨沖銷率降至平均貸款額的 0.19%。
• Hope Bancorp 於 10 月 1 日完成對 SMBC MANUBANK 商業銀行業務的收購，在併購會計調整前，新增約 22 億美元貸款及 26 億美元存款。
• 管理層預計 2026 年期末貸款餘額年增率約為 15%（包含 MANUBANK 且扣除上述貸款出售）。若扣除特定項目，預計全年營收成長約 16% 至 18%，撥備前淨收益成長 23% 至 25%。

核心財務數據

業務與營運表現

工商貸款與住宅抵押貸款帶動了第三季的貸款成長。管理層表示，銀行保持選擇性承作策略，優先考量風險調整後收益、投資組合多元化及合適的資金來源。

存款結構持續改善。無到期日存款（活期性存款）季增 6%，定期存款則下降 5%。截至 9 月 30 日，定期存款占總存款的比率從一年前的 40% 降至 37%。此轉變有助於降低整體存款成本。

非利息收入受惠於客戶相關手續費增加、SBA 貸款出售收益，以及其他貸款出售帶來的 300 萬美元淨收益。Hope Bancorp 本季出售了 7,200 萬美元的 SBA 貸款，而第二季為 6,800 萬美元。

信用指標維持穩定或改善。關注類貸款為 3.35 億美元，與上季基本持平，年減 10%。淨沖銷為 700 萬美元，年化後占平均貸款的 19 個基點，而第二季為 24 個基點。

MANUBANK 收購案

收購的資產組合包含約 13 億美元的不動產貸款及 9 億美元的商業貸款。扣除後續出售的收購 SBA 貸款，該資產組合在收購及其他會計調整前的加權平均票面利率為 5.69%。

收購的存款包含 6 億美元的無息活期存款、18 億美元的計息活期性存款及 2 億美元的定期存款。在會計調整前，其加權平均成本為 2.22%。

管理層表示，以擬算形式計算，此交易將使 Hope Bancorp 的存款成本降低 5 個基點，將定期存款占總存款比率降至 33%，並使貸存比來到約 91%。

公司預估收購貸款的折價約為 9,000 萬美元。管理層表示，該折價整體攤銷期限約為五年且前期比重較大，而相當於備抵額度的部分仍在最終確認中，約為 3,000 萬美元。

Hope Bancorp 於 10 月 21 日以 1.91 億美元出售收購的 MANUBANK SBA 貸款組合，未認列任何損益。管理層亦預計，完全實現後之成本節省將超過 MANUBANK 初始 1.36 億美元年營運費用比率的 40%。受核心系統轉換時程影響，預計將於 2028 年完全實現。

管理層財務展望

針對 2026 全年，管理層提供以下展望：

• 期末貸款餘額年增約 15%（包含收購的 MANUBANK 餘額，並扣除上述貸款出售）。
• 營收成長約 16% 至 18%（扣除特定項目）。
• 撥備前淨收益成長約 23% 至 25%（扣除特定項目）。

該展望已納入 Bank of Hope 今年以來的本業表現以及 MANUBANK 第四季的貢獻。管理層計劃在公布第四季財報時提供詳細的 2027 年展望。

風險與關注事項

美國長期公債殖利率上升，致使第三季其他綜合損益累計額減少 5,900 萬美元，並使有形普通股權益比率下降 31 個基點。管理層亦預期 MANUBANK 交易將使 CET1 比率較 9 月 30 日的水準下降約 200 個基點。

管理層指出，自宣佈交易以來，市場對利率的預期已發生重大轉變，從原本預期降息轉為預計 2027 年升息三次。未來的升息可能會提高貸款殖利率，但管理層也預計每次額外升息都會加速存款 Beta 值的上升。

MANUBANK 成本節省的時程仍取決於核心系統轉換進度及外部核心供應商的配合情況。管理層預期會有一些即時的成本節省，隨後進入較為平緩的時期，之後再迎來與系統轉換相關的第二階段。

分析師問答重點

• 利率敏感度：截至 9 月 30 日，Hope Bancorp 的貸款組合中有 48% 為直接浮動利率，另有 27% 為混合利率貸款。管理層表示，浮動利率占比高於以往週期，主因近期發放的貸款（特別是商業不動產貸款）著重於浮動利率。
• 存款定價：最近一次升息中，計息活期性存款的 Beta 值略低於 24%（包含 Territorial 且不含定期存單）。Territorial 的可比 Beta 值則低於 5%。
• 過剩流動性：MANUBANK 帶來了超過 5 億美元的過剩流動性。管理層計劃在成本較高的資金到期時動用這筆資金，包括第四季原本重定價約為 4.4% 的資金。
• 成本結構：管理層將 MANUBANK 相對偏高的費用基數歸因於其先前作為全球機構 SMBC 的一部分運作。隨著整合推進，Hope Bancorp 預計將消除重複的職能。
• SBA 業務：管理層表示，本業 SBA 貸款發放量維持穩健，與交割後出售的收購 MANUBANK SBA 貸款組合有所區隔。

法說會完整逐字稿

完整財報電話會議逐字稿

管理層陳述

Operator

Good day, and welcome to the Hope Bancorp Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please also note, today's event is being recorded.

I would now like to turn the conference over to Maxime Olivan, Investor Relations Manager. Please go ahead.

Maxime Olivan

Thank you, Roco. Good morning, everyone, and thank you for joining us for the Hope Bancorp Investor Conference Call for the third quarter of 2026. As usual, we will be using a slide presentation to accompany our discussion this morning, which is available on the Presentations page of our Investor Relations website.

Beginning on Slide 2. Let me start with a brief statement regarding forward-looking remarks. Today's call contains forward-looking statements and projections regarding the future financial performance of the company and future events. Forward-looking statements are not guarantees of future performance. Actual outcomes and results may differ materially. Hope Bancorp assumes no obligation to revise any forward-looking projections that may be made on today's call.

In addition, some of the information referenced during today's call includes non-GAAP financial measures. For a more detailed description of the risk factors and a reconciliation of GAAP to non-GAAP financial measures, please refer to the company's filings with the SEC as well as the safe harbor statements in our earnings press release.

Presenting from management today will be Kevin Kim, Hope Bancorp's Chairman, President and CEO; Julianna Balicka, Hope Bancorp Chief Financial Officer; and Peter Koh, Bank of Hope President and Chief Operating Officer, is also here with us as usual and will be available for the Q&A session.

With that, let me turn the call over to Kevin Kim. Kevin?

Kevin Kim

Thank you, Maxime. Good morning, everyone, and thank you for joining us today. Beginning with Slide 3, I will provide an overview of our third quarter results. Bancorp post positive earnings momentum in the first half of the year, continued in the third quarter, supported by revenue growth, positive operating leverage and stable asset quality, with continued improvements in key asset quality metrics.

Third quarter revenue growth was driven by loan growth, net interest margin expansion and increased noninterest income. And once again, revenue growth outpaced expense growth. As a result, we delivered strong sequential and year-over-year growth in pre-provision net revenue and after-tax net income.

Third quarter 2026 revenue totaled $157 million, an increase of 7% quarter-over-quarter and 11% year-over-year. Pre-provision net revenue increased to $55 million, up 11% from the prior quarter and up 21% from the prior year.

Reported diluted earnings for the third quarter were $0.28 per share, up 7% from $0.26 in the prior quarter and up 16% from $0.24 in the year ago quarter. Excluding notable items, which consisted of merger-related costs, diluted earnings for the third quarter were $0.29 per share, up from $0.27 sequentially and $0.25 a year ago.

Our balance sheet grew in the third quarter with gross loans of $15.1 billion and total deposits of $16.1 billion at September 30, 2026. Alongside that growth, our funding mix improved with growth in non-maturity deposits offsetting continued planned decreases in higher-cost time deposits. This shift helped lower our overall deposit cost.

The positive trends in our third quarter results are a sound foundation from which to enter a new chapter for Bank of Hope following the completion of our acquisition of SMBC Manu banks Commercial Banking unit on October 1, 2026. The transaction strengthens our commercial banking franchise, expands our presence in Southern California, and enhances our ability to serve Korean and Japanese businesses. Our partnership and collaboration agreement with SMBC also provides opportunities to develop relationships with multinational companies operating in the United States.

With the transaction closed, our focus is on serving our expanded customer base, integrating our teams and operations and building on the organic progress we have made over the past several quarters to strengthen our earnings. We are pleased to welcome our new colleagues to Bank of Hope and look forward to combining the strengths of our organization.

Turning to capital on Slide 4. Our regulatory capital ratios remained essentially stable quarter-over-quarter. At September 30, 2026, our common equity Tier 1 capital ratio was 12.25% and our total capital ratio was 13.92%. Higher long-term U.S. treasury yields in the third quarter had a negative impact on the fair value of securities available for sale and caused a decrease in accumulated comprehensive other income, which impacted our tangible common equity ratio by 31 basis points or $59 million quarter-over-quarter. Following the MANUBANK acquisition, we expect our common equity Tier 1 ratio to be approximately 10.2%, down about 200 basis points from September 30, 2026. The transaction optimizes our capital position, and we remain focused on prudent capital management.

Lastly, our Board of Directors has declared a quarterly common stock dividend of $0.14 per share, consistent with previous quarters and reflecting our continued commitment to returning capital to stockholders.

Continuing to Slide 5. Gross loans totaled $15.1 billion at September 30, 2026, up 1% quarter-over-quarter and up 3% year-over-year. Third quarter loan growth was primarily driven by commercial and industrial lending and residential mortgage loans. We remain selective in our approach to loan growth, focusing on opportunities that meet our risk-adjusted return expectations and support a diversified portfolio, while ensuring that new lending is backed by optimal funding sources.

On the deposit side, total deposits were $16.1 billion at September 30, 2026, up 1.5% quarter-over-quarter and up 2% year-over-year.

Quarter-over-quarter, nonmaturity deposits increased 6% and time deposits decreased 5%, reflecting our continued efforts to strengthen our funding mix by reducing the share of time deposits. As of September 30, 2026, time deposits were 37% of our total deposits compared with 40% a year ago. This shift, away from time deposits, has continued to help lower our overall cost of funds.

Quarter-over-quarter, on an average basis, noninterest-bearing demand deposits grew 4%. Money market, interest-bearing demand and savings deposits increased 5% in aggregate and time deposits decreased 3%.

With that, I will turn the call over to Julianna to review our financial performance for the third quarter in more detail. Julianna?

Julianna Balicka

Thank you, Kevin, and good morning, everyone. Beginning on Slide 6. Our net interest income totaled $135 million for the third quarter of 2026, up $6 million or 5% from the prior quarter and up $9 million or 7% from the year ago quarter. The sequential increase reflected average earning asset growth, higher volumes and lower deposit costs.

Average loans grew 1% from the prior quarter, equivalent to 5% anyway. Our net interest margin has continued to expand. Third quarter 2026 net interest margin was 3.02%, up 6 basis points from 2.96% in the prior quarter and up 13 basis points from 2.8% in the year ago quarter. The sequential quarter improvement reflected higher earning asset yields, including a 5 basis point increase in loan yields as well as a favorable shift in our funding mix.

On to Slide 7. We provide more detail on balance trends, yields and rates for our average loans and deposits. On to Slide 8. For the third quarter of 2026, noninterest income totaled $22 million, up $3 million or 17% from the prior quarter and up $7 million or 44% from the year ago quarter. Sequential quarter increase reflected growth in customer-related income and fees and higher SBA loan sale gains. In addition, we booked $3 million in net gains on sales of other loans, partially offset by a $1 million decrease in gains on sale of investment securities.

During the third quarter, we sold $72 million of SBA loans for a net gain of $47 million compared with $68 million sold for a net gain of $4.4 million in the second quarter.

Moving on to noninterest expense on Slide 9. Noninterest expense totaled $103 million in the third quarter of 2026, up $4 million or 4% and $99 million for the second quarter and up $6 million or from 6% or $97 million for the third quarter of 2025. Excluding merger-related notable items, noninterest expense in the third quarter was $100 million.

Our reported efficiency ratio improved to 65.3% and for the third quarter of 2026. Excluding notable items, our efficiency ratio grew to 63.6% for the third quarter of 2026, down from 65.2% in the second quarter and 67.6% for the year ago quarter. Our efficiency ratio improvement reflects incremental positive operating leverage achieved each quarter of the year.

Next on to Slide 10. Our asset quality metrics reflects [indiscernible] portfolio management and attention to sound credit fundamentals. Criticized loans totaled $335 million at September 30, 2026, essentially unchanged from the prior quarter and down $38 million or 10% from a year ago. The criticized loan ratio was 222 basis points at September 30 compared with 224 basis last quarter and 256 basis points a year ago.

Nonperforming assets declined both quarter-over-quarter and year-over-year to $108 million and the nonperforming asset ratio improved to 57 basis points of total assets at September 30, 2026.

Third quarter 2026 net charge-off was $7 million or an annualized 19 basis points of average loans compared to 24 basis annualized in the prior quarter. The third quarter provision for credit losses increased to $9 million compared with $7 million in the second quarter, primarily reflecting loan growth, partially offset by lower net charge-offs.

The allowance for credit losses totaled $154 million at September 30, 2026, with the allowance coverage ratio remained stable at 1.03% of loans receivable.

On Slide 11, I will provide an update on the financial aspects of the MANUBANK transaction. We will provide detailed guidance for 2027 with fourth quarter earnings, but there are a few items we want to walk through here regarding the MANUBANK equity -- the MANUBANK acquisition. From the transaction, we received approximately $307 million of cash from the net settlement and we did not pay a deposit fee. We also received $65 million of interest-bearing second plus the proceeds from the SBA loan sale that we executed in October.

As of the acquisition date, loans acquired from MANUBANK totaled approximately $2.2 billion before purchase and other accounting adjustments, consisting of $1.3 billion of real estate loans plus $0.9 billion of commercial loans. We estimate the discount on acquired loans to be approximately $90 million, comprising the interest rate mark, the accretable credit mark and the nonaccretable credit mark, which is equivalent to the allowance of credit losses -- for credit losses. The commercial portfolio included $0.2 billion of SBA loans purchased by MANUBANK in the secondary market. These loans would have had a relatively low effective yield for Hope after the acquisition. Therefore, on October 21, we sold the MANUBANK SBA loan portfolio for total proceeds of $191 million with no gain or loss recognized on the sale.

Excluding the SBA loans sold, the acquired loan portfolio had a weighted average coupon of 5.69% on at September 30 before purchase and other accounting adjustments.

Deposits acquired from MANUBANK totaled $2.6 billion before purchase and other accounting adjustments, consisting of $0.6 billion of noninterest-bearing demand deposits, $1.8 billion of interest-bearing nonmaturity deposits and $0.2 billion of time deposits. Pro forma with the MANUBANK deposits, the share of time deposits in our mix decreased to 33% compared with 37% at September 30, 2026. The acquired deposits had a weighted average cost of 2.22% at September 30, before purchase and other accounting adjustments.

Pro forma, the impact of the MANUBANK deposits would reduce our cost of deposits by 5 basis points. The deposits acquired from MANUBANK exceeded acquired loan balances, resulting in an estimated pro forma loan-to-deposit ratio of 91% and providing flexibility to optimize our overall funding profile.

Total loans at closing were below what they were at the deal announcement and customer deposits were largely stable. Combined with the SBA loan sale, this provides us additional flexibility to reduce maturing higher -- highest cost funding in the near term or to grow assets, which we plan on doing in the fourth quarter and throughout 2027. We believe this positions our balance sheet very well into a higher for longer interest rate environment and prioritizes profitability and profitable growth.

Market conditions and interest rate expectations have changed meaningfully and since announcement. We have gone from an interest rate environment that was forecasting 3 rate cuts through 2027 at the start of the year with a flat rate at deal announcement, and now the market projects 3 rate increases in 2027. So all that would need to be reflected in forward estimates.

Overall, the addition of the new deposit segment from MANUBANK, namely the Japanese banking division and specialty deposits enhances our funding base with which to support profitable loan growth in a range of operating environments. The acquired loan portfolio and the banking team to join us from MANUBANK strengthened our growth capabilities for next year and beyond.

In terms of cost savings, we expect fully phased-in cost savings of over 40% up of MANUBANK's starting operating expense run rate of $136 million. Overall, we expect cost savings to come in better than originally estimated and this will help offset some of the impact of the lower loan balances once fully phased in. Relative to original expectations, fully phased-in timing is later, and this is due to the scheduled timing of the core conversion.

With that, let me turn the call back to Kevin.

Kevin Kim

Thank you, Julianna. Moving on to the 2026 outlook on Slide 13. With the close of the MANUBANK acquisition and 2 months left in 2026, we updated our full year 2026 management outlook. Including the acquired MANUBANK balances and net of BSK loan sale, we expect end-of-period loan growth of approximately 15% year-over-year. Excluding notable items, we expect full year revenue growth in the range of approximately 16% to 18% and pre-provision net revenue growth in the range of approximately 23% to 25%, reflecting year-to-date organic trends from Bank of Hope plus the impact of MANUBANK for the fourth quarter.

Our third quarter results reflected the continued improvement in Bank of Hope fundamentals throughout 2026. With the MANUBANK transaction complete, we are well positioned to build on this momentum. With an active loan pipeline, we see opportunities to grow selectively while maintaining close credit oversight and prudent capital management. Our priority now is execution to build a more profitable and resilient Bank of Hope for a range of operating environments and to deliver long-term value for our stockholders.

With that, operator, please open up the call for questions.

Operator

[Operator Instructions] And today's first question comes from Matthew Clark at Piper Sandler.

分析師問答

Matthew Clark

Just putting the 2 banks together, thinking about the Fed potentially hiking here again, what's kind of a good -- I guess, what percentage of your loan book will truly float or benefit from the rate hikes?

Julianna Balicka

One second, we will give you that number in terms of the floating fixed mix.

Matthew Clark

Okay. And then just...

Julianna Balicka

Yes, go ahead.

Matthew Clark

Yes, maybe another one, Julian a lawyer looking through, you may know the number off the top of your head. But in terms of the purchase accounting accretion, the $90 million, I think there's a portion in there that is nonaccretable tied to the reserve. Just do you have the reserve amount so we can deduct that in the life of that $90 million.

Julianna Balicka

Yes. The life of that $90 million is pretty short, about 5 years overall, but there is a big portion of it, that's pretty short, like 2 years or so maybe. It's very front-weighted because it's on the variable rate loans on -- what we acquired. The -- and let me just get back to you on that. Okay. And then on the piece that is the ACL equivalent, is it's going to be -- we're still finalizing our estimate on that ACL portion, and it's probably going to be all, I'm going to say around $30 million.

Matthew Clark

Okay.

Julianna Balicka

And then back to the variable question. The variable rate loans, straight variable rate loans on our loan portfolio at September 30 were 48% and then we have a further 27% loans at our hybrid.

Matthew Clark

Okay. Okay. So the -- got it. Okay.

Julianna Balicka

I would actually add a remark, Matt, since you asked this question. For those that have been following Hope for a long time, this is a higher percentage than in past cycles because we have been focusing our originations for the last couple of years on variable rate loans. Particularly in CRE for those that have been following Hope for a long time, you may recall that CRE originations used to be largely fixed and/or hybrid. And for the last couple of years, they have been predominantly variable rate. So that is a shift into a new rising rate environment vis-a-vis past cycles.

All right. I'll turn the call back to the operator for the queue.

Operator

And our next question comes from Gary Tenner at D.A. Davidson.

Gary Tenner

Just following up on that comment, Julianna, on differences, kind of the balance sheet, this rate cycle versus past with adding territorial a couple of years ago and now with MANUBANK, do you talk about thoughts around deposit betas as we go over the next several months.

Julianna Balicka

Yes. So great question. I can share with you the beta that we've had thus far. So maybe a lot as a starting point. And for Bank of Hope, including territorial and excluding CDs, because as you know, those lag, our beta on our interest-bearing nonmaturity deposits from this most recent hike was a little under 24%. That's one of our best betas ever. And so -- and the beta at MANUBANK was similarly very low. Obviously, it's a balance between providing exception pricing to your most valuable customers and holding the line on -- across the board overall.

And when we think about betas for future hikes, obviously, we expect that the betas will accelerate with each incremental hike. But overall, I think that with the approach that we have taken to managing pricing over the last couple of years. And the addition of territorial to our mix and now the addition of MANU to our mix, I think, will position us well to continue to have a relatively better performance on beta.

Just for your context, the interest-bearing nonmaturity deposit beta at the territorial was only less than 5%, okay? So that's a nice benefit. So I think that overall will be a positive.

Also another thing that I would like to highlight on this beta question is the excess liquidity that we picked up with the MANUBANK transaction. That's important because when you think about the highest cost funding, some of which is wholesale market rate linked. That funding would reprice at 4.4% in the fourth quarter, and we no longer need to have to chase that kind of price, and that will help the beta overall through the cycle.

Gary Tenner

And then I just wanted to also ask on the kind of expense add from MANUBANK. Are there incremental cost saves out of the gate before the full cost saves are recognized later in 2027? It just feels like adding the kind of annualized expense to the fourth quarter run rate pushes the expense level quite a bit above where consensus is. And I just wanted to make sure that, that's the appropriate method to follow.

Julianna Balicka

I would say that the expense kind of curve is a barbell. Is that the right word? We have expense cost savings that we are realizing upfront this quarter. And then there'll be a period of time where there'll be less incremental realization. And then with the core conversion, there's going to be the next phase of cost savings.

Operator

Our next question today comes from Andrew Lease with Stonex Financial.

Unknown Analyst

Just sticking with the expense question here, looks like they're operating maybe over 5% of assets that are coming on. I guess, what's different from their operating model versus Hopes because even with the cost saves it'll be a little over 3% of assets, but your efficiencies outstanding closer to 2%. I guess what's different with what you're acquiring and legacy Hope?

Julianna Balicka

Let me phrase your question back to you. So you're asking why is there expense run rate higher relative to their asset base than ours?

Unknown Analyst

Yes. that expense number just took me by surprise for both what they're operating...

Julianna Balicka

Yes. No, understood. It's a good question. Thank you for asking that. I would say that the reason that their expense base starting out the gate relative to their assets is higher is -- I think a lot of it had to do with the fact that they were a subsidiary of a global institution, SMBC. And as you can imagine, regardless of the size of the subsidiary, you were held to the standard of the parent. And so there were a lot of costs embedded in the run rate and operations at MANUBANK itself that really reflected the fact that they were perceived to be part of a very large bank. And that is the difference between independent banks and the run rate of larger -- and what -- and so that -- and then when it comes to the ratio, as you're pointing out, they've got that higher expense burden, but they don't have the assets with which to spread it out. So the math ends up not working very well. And so in our case, we're able to absorb the MANUBANK operations, and we don't need to duplicate certain functions because we already have it. And our functions are sized to our balance sheet size.

Unknown Analyst

Got it. All right. That's helpful. But it sounds like the like the expense run rate is going to be a little bit higher here you mentioned to Gary's question, some cost saves right after that, but really, it's going to be 2028 that we'll see the full cost save number?

Julianna Balicka

That's fair. 2028 [indiscernible] cost saves. And as I mentioned in my remarks, that is related to timing of when the core conversion is scheduled for. We have hopes that we will be able to schedule it for earlier. But of course, core conversions are not just dependent on the banks doing the conversion, but also on the core providers. So at the end of the day, this is actually better for our book value because we avoid some excessive contract breakage fees that would otherwise impact the bottom line, even if there are notable items. So net-net, it's a good outcome.

Operator

And our next question comes from Kelly Motta at KBW.

Kelly Motta

I guess to kick it off, and you alluded to it in your prepared remarks, but what are the benefits of MANUBANK is it gives you a lot of liquidity and a lot of flexibility with how to profitably fund ahead. You have some borrowings. Just wondering kind of as this closes, if there's any incremental action here with kind of reducing higher cost borrowings close to day 1? And kind of with this level of liquidity, how you manage you get near term?

Julianna Balicka

Thank you, Kelly. Great question. My treasurer has already given me his wish list of highest cost funding that we can now reduce as it matures in the fourth quarter. So I would say a lot of that $0.5 billion plus of excess liquidity that we gained, we can find very good use for it to avoid, as I mentioned in my other Q&A, 4.4% funding.

Kelly Motta

Okay. Got it. That's helpful. And then in Q3, you had a really nice fees. Part of that, you had a -- you sold a portfolio of other loans. I'm hoping to get a bit more color on that as well as on SBA where we're hearing premiums have come in, although you guys got some nice gains. So just wondering kind of the outlook for that portion of the business.

Julianna Balicka

So let's answer the SBA question because in the FDA question, just for clarity, you're talking about our SBA originations from our team as opposed to what we purchased from MANUBANK that was directly related to purchase accounting marks and discounts on those loans. So our SBA originations are holding up well. And our SBA team is able to continue to generate great volume in SBA originations.

Operator

Thank you. That concludes our question-and-answer session. I'd like to turn the conference back over to the management team for any closing remarks.

Kevin Kim

Thank you. In closing , I want to extend my sincere appreciation to our colleagues for their dedication and the care that they bring to work every day. We are grateful for all they do for Bank of Hope and want me welcome our new MANUBANK colleagues to our team. Thank you all for joining us today and for your continued interest and support. We look forward to speaking with you again next quarter.

Operator

Thank you. That does conclude our conference call for today. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.