-

Hope Bancorp Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2026

Second quarter 2026 net income of $33.0 million, up 12% quarter-over-quarter

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 second quarter and six months ended June 30, 2026.

For the second quarter of 2026, the Company reported net income of $33.0 million, or $0.26 per diluted common share, up 12% from net income of $29.5 million, or $0.23 per diluted common share, for the first quarter of 2026, and up from a net loss of $24.8 million, or $(0.19) per diluted common share, for the second quarter of 2025. Net income excluding notable items(1) for the second quarter of 2026 was $34.5 million, or $0.27 per diluted common share, up 16% from $29.7 million, or $0.23 per diluted common share, for the first quarter of 2026, and up 40% from net income of $24.6 million, or $0.19 per diluted common share, for the second quarter of 2025.

“Overall, we delivered strong quarterly results and are pleased with the continued progress made to improve the profitability and core operating performance of the Bank. Second quarter 2026 earnings growth reflected a combination of revenue growth and positive operating leverage, driven by loan growth, net interest margin expansion, lower funding costs, increased fee income and expense discipline,” said Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc.

“As we enter the second half of 2026, we are well-positioned to continue our momentum in executing on our key priorities. We are focused on building a more profitable and resilient franchise through disciplined balance sheet management, prudent expense control and the strengthening of client relationships to deliver long-term value for our stockholders,” continued Kim.

“Our pending acquisition of the Commercial Banking Unit of SMBC MANUBANK(2) is closely aligned with our priorities and represents an important opportunity to expand our middle market and multinational banking capabilities, develop specialty deposit verticals, and broaden our footprint in Southern California. The transaction is anticipated to improve our 2027 earnings and returns on tangible common equity, enhance our long-term earnings capacity, and support effective capital management,” concluded Kim.

____________________________

(1)

Net income excluding notable items and earnings per share excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12. Notable items in the second quarter of 2026 included merger-related costs; notable items for the prior periods are detailed on Table Pages 10 to 12.

(2)

The pending acquisition of the Commercial Banking Unit of SMBC MANUBANK is subject to regulatory approvals and other customary closing conditions.

Operating Results for the Second Quarter of 2026

Net interest income and net interest margin. Net interest income totaled $129.0 million for the second quarter of 2026, up $4.9 million, or 4%, compared with $124.1 million for the first quarter of 2026, and up $11.5 million, or 10%, from the second quarter of 2025. Net interest margin for the second quarter of 2026 was 2.96%, up six basis points from 2.90% for the first quarter of 2026, and up 27 basis points from 2.69% for the year-ago quarter. The sequential quarter net interest income growth and net interest margin expansion were primarily driven by average earning asset growth, earning asset yield expansion and a lower cost of funds. The second quarter 2026 yield on average loans was 5.73%, up four basis points sequentially, and the cost of interest bearing deposits was 3.31%, down six basis points sequentially. Year-over-year, the cost of interest bearing deposits was down 46 basis points, reflecting Fed Funds target rate cuts over the period as well as the positive impact of the Territorial Bancorp acquisition, which closed on April 2, 2025, and contributed lower cost deposits to the Bank’s funding mix.

Noninterest income. For the second quarter of 2026, noninterest income totaled $18.9 million, up $1.9 million, or 11%, compared with $17.0 million for the first quarter of 2026, and up $3.0 million, or 19%, compared with noninterest income excluding notable items(3) of $15.9 million for the second quarter of 2025. Second quarter 2025 reported noninterest income was $(23.0) million and included a $38.9 million loss on an investment portfolio repositioning. The sequential quarter growth in second quarter 2026 noninterest income reflected increased net gains on sales of Small Business Administration (“SBA”) loans, growth in customer-driven income and fees, and an increase in net gains on sales of available-for-sale securities. The Company sold $67.9 million of SBA loans in the second quarter of 2026 for a net gain of $4.4 million, compared with $53.0 million of SBA loans sold for a net gain of $3.3 million in the first quarter of 2026.

Noninterest expense. Noninterest expense for the second quarter of 2026 was $98.5 million, up $4.0 million, or 4%, from $94.5 million for the first quarter of 2026, and down $11.0 million, or 10%, from $109.5 million for the second quarter of 2025. Noninterest expense excluding notable items(3) for the second quarter of 2026 was $96.4 million, up $2.1 million, or 2%, from $94.3 million for the first quarter of 2026, and up $4.2 million, or 5%, from $92.2 million for the second quarter of 2025. Growth in the second quarter 2026 noninterest expense was well controlled across all key areas of operating expenses.

In the second quarter of 2026, revenue growth outpaced expense growth, resulting in positive operating leverage and an improved efficiency ratio. The reported efficiency ratio for the second quarter of 2026 was 66.6%, improving from 67.0% in the prior quarter and 115.8% in the year-ago quarter. The efficiency ratio excluding notable items(3) for the second quarter of 2026 was 65.2%, improving from 66.9% in the prior quarter and 69.1% in the year-ago quarter.

Income tax provision and tax rate. For the second quarter of 2026, the Company recorded an income tax provision of $9.6 million, compared with an income tax provision of $8.4 million for the first quarter of 2026 and an income tax benefit of $(1.3) million for the second quarter of 2025. The year-to-date effective tax rate for the first half of 2026 was 22.3%.

Balance Sheet Summary

Total assets. At June 30, 2026, total assets were $18.99 billion, compared with $18.66 billion at March 31, 2026, and $18.55 billion at June 30, 2025.

Loans. At June 30, 2026, gross loans totaled $15.03 billion, up 2%, equivalent to 8% annualized, from $14.74 billion at March 31, 2026, and up 4% from $14.45 billion at June 30, 2025. Second quarter 2026 average loans were $14.79 billion, up 1%, equivalent to 3% annualized, from $14.69 billion for the first quarter of 2026, and up 3% from $14.43 billion for the second quarter of 2025. Quarter-over-quarter and year-over-year loan growth was broad-based across the Company’s major lending portfolios of commercial and industrial, commercial real estate and residential mortgage.

____________________________

(3)

Noninterest income excluding notable items, noninterest expense excluding notable items, and efficiency ratio excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12.

The following table sets forth the loan portfolio composition at June 30, 2026, March 31, 2026, and June 30, 2025:

(dollars in thousands) (unaudited)

6/30/2026

 

3/31/2026

 

6/30/2025

 

Balance

 

Percentage

 

Balance

 

Percentage

 

Balance

 

Percentage

Commercial real estate (“CRE”) loans

$

8,583,967

 

57.1

%

 

$

8,498,246

 

57.7

%

 

$

8,385,764

 

58.0

%

Commercial and industrial (“C&I”) loans

 

3,896,116

 

25.9

%

 

 

3,734,978

 

25.3

%

 

 

3,729,962

 

25.8

%

Residential mortgage and other loans

 

2,554,104

 

17.0

%

 

 

2,503,919

 

17.0

%

 

 

2,334,816

 

16.2

%

Gross loans (including held for sale)

$

15,034,187

 

100.0

%

 

$

14,737,143

 

100.0

%

 

$

14,450,542

 

100.0

%

Deposits. Total deposits were $15.88 billion at June 30, 2026, up 1%, equivalent to 4% annualized, from $15.73 billion at March 31, 2026, and down 0.4% compared with $15.94 billion at June 30, 2025. Quarter-over-quarter, noninterest bearing demand deposits increased 5%; money market, interest bearing demand and savings deposits increased 1%, and time deposits decreased 1%. Compared with the year-ago quarter, noninterest bearing demand deposits increased 2%, while time deposits decreased 2%. The quarter-over-quarter and year-over-year decreases in time deposits were planned, to support continued reduction in the Bank’s cost of funds.

The following table sets forth the deposit composition at June 30, 2026, March 31, 2026, and June 30, 2025:

(dollars in thousands) (unaudited)

6/30/2026

 

3/31/2026

 

6/30/2025

 

Balance

 

Percentage

 

Balance

 

Percentage

 

Balance

 

Percentage

Noninterest bearing demand deposits

$

3,548,452

 

22.4

%

 

$

3,387,757

 

21.5

%

 

$

3,485,502

 

21.9

%

Money market, interest bearing demand, and savings deposits

 

6,079,728

 

38.3

%

 

 

6,036,197

 

38.4

%

 

 

6,102,999

 

38.3

%

Time deposits

 

6,248,363

 

39.3

%

 

 

6,302,488

 

40.1

%

 

 

6,354,854

 

39.8

%

Total deposits

$

15,876,543

 

100.0

%

 

$

15,726,442

 

100.0

%

 

$

15,943,355

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Gross loan-to-deposit ratio

 

 

94.7

%

 

 

 

93.7

%

 

 

 

90.6

%

Credit Quality and Allowance for Credit Losses

Criticized loans. Overall credit quality remained stable quarter-over-quarter and improved meaningfully year-over-year. Criticized loans were $334.3 million at June 30, 2026, up $9.2 million, or 3%, quarter-over-quarter, and down $80.5 million, or 19%, year-over-year. The criticized loan ratio was 2.24% of total loans receivable at June 30, 2026, compared with 2.22% at March 31, 2026, and down 63 basis points from 2.87% at June 30, 2025.

Nonperforming assets. Nonperforming assets declined $7.7 million from the prior quarter to $112.9 million, or 0.59% of total assets, at June 30, 2026, compared with 0.65% of total assets at March 31, 2026, and 0.61% of total assets at June 30, 2025. The quarter-over-quarter improvement primarily reflected a reduction in accruing delinquent loans past due 90 days or more.

The following table sets forth the components of nonperforming assets at June 30, 2026, March 31, 2026, and June 30, 2025:

(dollars in thousands) (unaudited)

6/30/2026

 

3/31/2026

 

6/30/2025

Loans on nonaccrual status (1)

$

111,973

 

$

109,512

 

$

110,739

Accruing delinquent loans past due 90 days or more

 

515

 

 

10,642

 

 

2,149

Total nonperforming loans

 

112,488

 

 

120,154

 

 

112,888

Other real estate owned

 

365

 

 

365

 

 

Total nonperforming assets

$

112,853

 

$

120,519

 

$

112,888

 

 

 

 

 

 

 

 

 

Nonperforming assets/total assets

 

0.59 %

 

 

0.65 %

 

 

0.61 %

_____________________________________

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $17.1 million, $19.4 million and $15.3 million at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

Net charge-offs. The Company recorded net charge-offs of $9.0 million for the second quarter of 2026, equivalent to 0.24%, annualized, of average loans. This compares with net charge-offs of $10.7 million, or 0.29%, annualized, of average loans for the first quarter of 2026, and $12.0 million, or 0.33%, annualized, of average loans for the second quarter of 2025.

Provision for credit losses. For the second quarter of 2026, the Company recorded a provision for credit losses of $6.8 million, compared with $8.7 million for the first quarter of 2026 and $11.1 million for the second quarter of 2025. The sequential quarter decrease in the provision for credit losses primarily reflected lower net charge-offs in the second quarter of 2026 compared with the prior quarter.

Allowance for credit losses. The allowance for credit losses totaled $153.2 million at June 30, 2026, compared with $155.1 million at March 31, 2026, and $149.5 million at June 30, 2025. The allowance coverage ratio was 1.03% of loans receivable at June 30, 2026, compared with 1.06% at March 31, 2026, and 1.04% at June 30, 2025.

The following table sets forth the allowance for credit losses and the coverage ratios at June 30, 2026, March 31, 2026, and June 30, 2025:

(dollars in thousands) (unaudited)

6/30/2026

 

3/31/2026

 

6/30/2025

Allowance for credit losses

$

153,218

 

 

$

155,114

 

 

$

149,505

 

Allowance for credit losses/loans receivable

 

1.03

%

 

 

1.06

%

 

 

1.04

%

Capital

At June 30, 2026, the capital ratios of the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution.

The following table sets forth the capital ratios for the Company at June 30, 2026, March 31, 2026, and June 30, 2025:

(unaudited)

6/30/2026

 

3/31/2026

 

6/30/2025

 

Minimum Guideline
for “Well-Capitalized”

Common Equity Tier 1 Capital Ratio

12.27%

 

12.36%

 

12.08%

 

6.50%

Tier 1 Capital Ratio

12.95%

 

13.05%

 

12.77%

 

8.00%

Total Capital Ratio

13.95%

 

14.07%

 

13.78%

 

10.00%

Leverage Ratio

11.07%

 

11.11%

 

10.58%

 

5.00%

Tangible Common Equity (“TCE”) Ratio(4)

9.58%

 

9.68%

 

9.44%

 

N/A

Year-to-date through June 30, 2026, the Company returned $44.6 million of capital to stockholders through cash dividends and common stock repurchases. Year-to-date in 2026, the Company repurchased 772,726 shares of common stock, equivalent to 0.6% of outstanding shares at December 31, 2025, at an average price of $11.25 per share, for a total of $8.7 million, pursuant to its existing $50.0 million share repurchase authorization. As of June 30, 2026, $26.6 million remained available under the authorization. The Company also returned capital to stockholders through quarterly common stock dividends of 14 cents per share declared in both the first and the second quarters of 2026.

At June 30, 2026, total stockholders’ equity was $2.30 billion, up 1% compared with December 31, 2025. Book value per share at June 30, 2026, was $17.97, up 1% compared with $17.81 at December 31, 2025. TCE per share(4) was $13.85 at June 30, 2026, up 1% compared with $13.71 at December 31, 2025.

____________________________

(4)

TCE ratio and TCE per share are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Monday, July 27, 2026, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review its unaudited financial results for its second quarter ended June 30, 2026. 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 at least one year. A telephonic replay of the call will be available at 855-669-9658 (domestic) or 412-317-0088 (international) for one week through August 3, 2026, with the replay access code 7252988.

Non-GAAP Financial Metrics

This news release and accompanying financial tables contain certain non-GAAP financial measure disclosures, including net income excluding notable items, earnings per share excluding notable items, noninterest income excluding notable items, noninterest expense excluding notable items, efficiency ratio excluding notable items, effective tax rate excluding notable items, PPNR, PPNR excluding notable items, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, TCE per share and TCE ratio. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operational performance and the Company’s capital levels and has included these figures in response to market participant interest in these financial metrics. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12.

About Hope Bancorp, Inc.

Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company for Bank of Hope, with $18.99 billion in total assets as of June 30, 2026. Following the addition of Territorial Savings as a division of Bank of Hope, the Company became the largest regional bank serving multicultural customers across the continental United States and Hawaii. Headquartered in Los Angeles, California, Bank of Hope offers a comprehensive range of commercial, corporate, and consumer banking products and services, including commercial and commercial real estate lending, SBA lending, residential mortgage and consumer lending, treasury management, foreign exchange solutions, interest rate derivatives, and international trade finance. Bank of Hope operates 45 full-service branches in California, New York, New Jersey, Washington, Texas, Illinois, Alabama and Georgia under the Bank of Hope banner, and 28 branches in Hawaii under the Territorial Savings banner. Bank of Hope also operates SBA loan production offices, commercial loan production offices, and residential mortgage loan production offices throughout the United States, and a representative office in Seoul, South Korea. 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 www.bankofhope.com for Bank of Hope and www.tsbhawaii.bank for Territorial Savings, a division of Bank of Hope. By including the foregoing website address links, the Company does not intend 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. 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”, “projects”, and similar expressions and statements regarding Hope Bancorp’s strategic initiatives, the pending acquisition of the Commercial Banking Unit of SMBC MANUBANK (“MANUBANK”), and Hope Bancorp’s future financial and operational results and capital allocation strategy. With respect to any such forward-looking statements, Hope Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. With the consummation of the pending acquisition of MANUBANK, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among other things: the failure of the conditions to closing to be satisfied or waived; difficulties and delays in integrating Hope Bancorp and MANUBANK and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; and deposit attrition, operating costs, customer loss and business disruption following the acquisition, including difficulties in maintaining relationships with employees and customers, which may be greater than expected. The closing of the proposed transaction is subject to regulatory approvals and the satisfaction of other customary closing conditions. Other risks and uncertainties include, but are not limited to: possible deterioration of economic conditions in Hope Bancorp’s areas of operation and in the U.S. generally or elsewhere, including as a result of the interest rate environment, supply chain disruptions, inflation, labor shortages, changes in the housing and real estate markets, consumer confidence and spending habits; risk of adverse economic or political conditions in South Korea; interest rate risk associated with volatile interest rates and related asset‑liability matching risk; liquidity risks; the possibility that Hope Bancorp may discontinue or otherwise limit repurchases of its common stock; risk of significant non‑earning assets and net credit losses that could occur, particularly in times of weak economic conditions or rising interest rates; the failure of or changes to assumptions and estimates underlying Hope Bancorp’s allowance for credit losses; risk of natural disasters; risk of cybersecurity incidents; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp; and the impact of U.S. and global trade policies, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom fluctuations in commodity prices such as oil, as well as geopolitical instability and international tensions. For additional information concerning these and other risk factors, see Hope Bancorp’s most recent Annual Report on Form 10‑K and other documents Hope Bancorp files with the SEC from time to time. Hope Bancorp does not undertake, and specifically disclaims, any obligation to update any forward‑looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

Assets:

6/30/2026

 

3/31/2026

 

% change

 

6/30/2025

 

% change

Cash and due from banks

$

640,443

 

 

$

594,769

 

 

8

%

 

$

689,734

 

 

(7

)%

Investment securities

 

2,179,253

 

 

 

2,185,952

 

 

%

 

 

2,268,889

 

 

(4

)%

Federal Home Loan Bank (“FHLB”) stock and other investments

 

70,436

 

 

 

68,800

 

 

2

%

 

 

106,752

 

 

(34

)%

Gross loans, including loans held for sale

 

15,034,187

 

 

 

14,737,143

 

 

2

%

 

 

14,450,542

 

 

4

%

Allowance for credit losses

 

(153,218

)

 

 

(155,114

)

 

(1

)%

 

 

(149,505

)

 

2

%

Accrued interest receivable

 

53,592

 

 

 

53,734

 

 

0

%

 

 

53,589

 

 

0

%

Premises and equipment, net

 

69,968

 

 

 

68,621

 

 

2

%

 

 

69,141

 

 

1

%

Goodwill and intangible assets

 

526,890

 

 

 

528,021

 

 

0

%

 

 

525,428

 

 

0

%

Other assets

 

570,365

 

 

 

574,938

 

 

(1

)%

 

 

535,578

 

 

6

%

Total assets

$

18,991,916

 

 

$

18,656,864

 

 

2

%

 

$

18,550,148

 

 

2

%

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Deposits

$

15,876,543

 

 

$

15,726,442

 

 

1

%

 

$

15,943,355

 

 

0

%

FHLB and Federal Reserve Bank (“FRB”) borrowings

 

472,000

 

 

 

284,966

 

 

66

%

 

 

29,752

 

 

NM

 

Subordinated debentures and convertible notes, net

 

111,675

 

 

 

111,316

 

 

0

%

 

 

110,263

 

 

1

%

Accrued interest payable

 

63,865

 

 

 

68,399

 

 

(7

)%

 

 

72,004

 

 

(11

)%

Other liabilities

 

171,981

 

 

 

182,361

 

 

(6

)%

 

 

167,526

 

 

3

%

Total liabilities

$

16,696,064

 

 

$

16,373,484

 

 

2

%

 

$

16,322,900

 

 

2

%

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

 

 

Common stock, $0.001 par value

$

146

 

 

$

146

 

 

0

%

 

$

146

 

 

0

%

Additional paid-in capital

 

1,525,555

 

 

 

1,523,015

 

 

0

%

 

 

1,520,129

 

 

0

%

Retained earnings

 

1,199,120

 

 

 

1,183,986

 

 

1

%

 

 

1,143,044

 

 

5

%

Treasury stock, at cost

 

(273,384

)

 

 

(271,372

)

 

(1

)%

 

 

(264,667

)

 

(3

)%

Accumulated other comprehensive loss, net

 

(155,585

)

 

 

(152,395

)

 

(2

)%

 

 

(171,404

)

 

9

%

Total stockholders’ equity

 

2,295,852

 

 

 

2,283,380

 

 

1

%

 

 

2,227,248

 

 

3

%

Total liabilities and stockholders’ equity

$

18,991,916

 

 

$

18,656,864

 

 

2

%

 

$

18,550,148

 

 

2

%

 

 

 

 

 

 

 

 

 

 

Common stock shares – authorized

 

300,000,000

 

 

 

300,000,000

 

 

 

 

 

300,000,000

 

 

 

Common stock shares – outstanding

 

127,741,836

 

 

 

127,822,689

 

 

 

 

 

128,124,458

 

 

 

Treasury stock shares

 

18,155,561

 

 

 

17,986,996

 

 

 

 

 

17,382,835

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

 

 

Three Months Ended

 

Six Months Ended

 

6/30/2026

 

3/31/2026

 

% change

 

6/30/2025

 

% change

 

6/30/2026

 

6/30/2025

 

% change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

211,378

 

$

205,919

 

 

3

%

 

$

211,363

 

 

0

%

 

$

417,297

 

 

$

406,324

 

 

3

%

Interest on investment securities

 

20,359

 

 

19,218

 

 

6

%

 

 

17,769

 

 

15

%

 

 

39,577

 

 

 

33,661

 

 

18

%

Interest on cash and deposits at other banks

 

3,808

 

 

3,778

 

 

1

%

 

 

8,783

 

 

(57

)%

 

 

7,586

 

 

 

13,988

 

 

(46

)%

Interest on other investments and FHLB dividends

 

632

 

 

1,229

 

 

(49

)%

 

 

1,177

 

 

(46

)%

 

 

1,861

 

 

 

2,285

 

 

(19

)%

Total interest income

 

236,177

 

 

230,144

 

 

3

%

 

 

239,092

 

 

(1

)%

 

 

466,321

 

 

 

456,258

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

101,785

 

 

101,455

 

 

0

%

 

 

118,852

 

 

(14

)%

 

 

203,240

 

 

 

232,437

 

 

(13

)%

Interest on borrowings

 

5,423

 

 

4,632

 

 

17

%

 

 

2,785

 

 

95

%

 

 

10,055

 

 

 

5,549

 

 

81

%

Total interest expense

 

107,208

 

 

106,087

 

 

1

%

 

 

121,637

 

 

(12

)%

 

 

213,295

 

 

 

237,986

 

 

(10

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

128,969

 

 

124,057

 

 

4

%

 

 

117,455

 

 

10

%

 

 

253,026

 

 

 

218,272

 

 

16

%

Provision for credit losses

 

6,770

 

 

8,650

 

 

(22

)%

 

 

11,092

 

 

(39

)%

 

 

15,420

 

 

 

15,892

 

 

(3

)%

Net interest income after provision

 

122,199

 

 

115,407

 

 

6

%

 

 

106,363

 

 

15

%

 

 

237,606

 

 

 

202,380

 

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service fees on deposit accounts

 

3,395

 

 

3,335

 

 

2

%

 

 

3,106

 

 

9

%

 

 

6,730

 

 

 

6,027

 

 

12

%

Net gains on sales of SBA loans

 

4,447

 

 

3,266

 

 

36

%

 

 

3,998

 

 

11

%

 

 

7,713

 

 

 

7,129

 

 

8

%

Other customer driven income and fees

 

7,721

 

 

7,132

 

 

8

%

 

 

6,323

 

 

22

%

 

 

14,853

 

 

 

12,022

 

 

24

%

Net gains (losses) on sales of securities available for sale

 

1,172

 

 

604

 

 

94

%

 

 

(38,856

)

 

NM

 

 

 

1,776

 

 

 

(38,856

)

 

NM

 

Other noninterest income

 

2,115

 

 

2,630

 

 

(20

)%

 

 

2,473

 

 

(14

)%

 

 

4,745

 

 

 

6,410

 

 

(26

)%

Total noninterest income (loss)

 

18,850

 

 

16,967

 

 

11

%

 

 

(22,956

)

 

NM

 

 

 

35,817

 

 

 

(7,268

)

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

56,901

 

 

56,223

 

 

1

%

 

 

52,834

 

 

8

%

 

 

113,124

 

 

 

101,294

 

 

12

%

Occupancy, furniture and equipment

 

11,353

 

 

10,566

 

 

7

%

 

 

11,093

 

 

2

%

 

 

21,919

 

 

 

19,929

 

 

10

%

Software-related, data and item processing

 

10,350

 

 

9,853

 

 

5

%

 

 

9,210

 

 

12

%

 

 

20,203

 

 

 

16,160

 

 

25

%

Amortization of investments in affordable housing partnerships

 

2,554

 

 

2,474

 

 

3

%

 

 

2,430

 

 

5

%

 

 

5,028

 

 

 

4,391

 

 

15

%

FDIC assessment

 

2,783

 

 

2,814

 

 

(1

)%

 

 

2,488

 

 

12

%

 

 

5,597

 

 

 

4,990

 

 

12

%

FDIC special assessment expense (reversal)

 

 

 

(58

)

 

NM

 

 

 

 

 

0

%

 

 

(58

)

 

 

 

 

NM

 

Earned interest credit

 

2,501

 

 

2,383

 

 

5

%

 

 

3,310

 

 

(24

)%

 

 

4,884

 

 

 

6,397

 

 

(24

)%

Merger related costs

 

2,058

 

 

234

 

 

NM

 

 

 

17,281

 

 

NM

 

 

 

2,292

 

 

 

19,800

 

 

NM

 

Other noninterest expense

 

9,964

 

 

9,966

 

 

0

%

 

 

10,827

 

 

(8

)%

 

 

19,930

 

 

 

20,373

 

 

(2

)%

Total noninterest expense

 

98,464

 

 

94,455

 

 

4

%

 

 

109,473

 

 

(10

)%

 

 

192,919

 

 

 

193,334

 

 

0

%

Income (loss) before income taxes

 

42,585

 

 

37,919

 

 

12

%

 

 

(26,066

)

 

NM

 

 

 

80,504

 

 

 

1,778

 

 

4,428

%

Income tax provision (benefit)

 

9,554

 

 

8,379

 

 

14

%

 

 

(1,316

)

 

NM

 

 

 

17,933

 

 

 

5,432

 

 

230

%

Net income (loss)

$

33,031

 

$

29,540

 

 

12

%

 

$

(24,750

)

 

NM

 

 

$

62,571

 

 

$

(3,654

)

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share (“EPS”) – diluted

$

0.26

 

$

0.23

 

 

12

%

 

$

(0.19

)

 

NM

 

 

$

0.49

 

 

$

(0.03

)

 

NM

 

Weighted average shares outstanding – diluted

 

128,308,861

 

 

128,723,654

 

 

 

 

 

128,001,605

 

 

 

 

 

128,474,397

 

 

 

124,426,400

 

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited

 

 

Three Months Ended

 

Six Months Ended

Profitability measures (annualized, except as noted):

6/30/2026

 

3/31/2026

 

6/30/2025

 

6/30/2026

 

6/30/2025

Earnings (loss) per common share - diluted (not annualized)

$

0.26

 

 

$

0.23

 

 

$

(0.19

)

 

$

0.49

 

 

$

(0.03

)

Earnings (loss) per common share - diluted excluding notable items (not annualized) (1)

$

0.27

 

 

$

0.23

 

 

$

0.19

 

 

$

0.50

 

 

$

0.38

 

Return on average assets (“ROA”)

 

0.71

%

 

 

0.64

%

 

 

(0.53

)%

 

 

0.67

%

 

 

(0.04

)%

ROA excluding notable items (1)

 

0.74

%

 

 

0.64

%

 

 

0.53

%

 

 

0.69

%

 

 

0.53

%

Return on average equity (“ROE”)

 

5.76

%

 

 

5.14

%

 

 

(4.45

)%

 

 

5.45

%

 

 

(0.33

)%

ROE excluding notable items (1)

 

6.02

%

 

 

5.16

%

 

 

4.42

%

 

 

5.59

%

 

 

4.34

%

Return on average tangible common equity (“ROTCE”) (1)

 

7.48

%

 

 

6.66

%

 

 

(5.83

)%

 

 

7.07

%

 

 

(0.43

)%

ROTCE excluding notable items (1)

 

7.81

%

 

 

6.69

%

 

 

5.79

%

 

 

7.25

%

 

 

5.62

%

Net interest margin

 

2.96

%

 

 

2.90

%

 

 

2.69

%

 

 

2.93

%

 

 

2.62

%

Efficiency ratio (not annualized)

 

66.61

%

 

 

66.98

%

 

 

115.85

%

 

 

66.79

%

 

 

91.63

%

Efficiency ratio excluding notable items (not annualized) (1)

 

65.22

%

 

 

66.85

%

 

 

69.13

%

 

 

66.02

%

 

 

69.45

%

(1)

Earnings per common share - diluted excluding notable items, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12.

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

 

Three Months Ended

 

6/30/2026

 

3/31/2026

 

6/30/2025

 

 

 

Interest

 

Annualized

 

 

 

Interest

 

Annualized

 

 

 

Interest

 

Annualized

 

Average

 

Income/

 

Average

 

Average

 

Income/

 

Average

 

Average

 

Income/

 

Average

 

Balance

 

Expense

 

Yield/Cost

 

Balance

 

Expense

 

Yield/Cost

 

Balance

 

Expense

 

Yield/Cost

INTEREST EARNING ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including loans held for sale

$

14,790,642

 

$

211,378

 

5.73

%

 

$

14,689,516

 

$

205,919

 

5.69

%

 

$

14,427,785

 

$

211,363

 

5.88

%

Investment securities

 

2,221,334

 

 

20,359

 

3.68

%

 

 

2,149,595

 

 

19,218

 

3.63

%

 

 

2,192,533

 

 

17,769

 

3.25

%

Interest earning cash and deposits at other banks

 

420,971

 

 

3,808

 

3.63

%

 

 

437,990

 

 

3,778

 

3.50

%

 

 

807,979

 

 

8,783

 

4.36

%

FHLB stock and other investments

 

51,839

 

 

632

 

4.89

%

 

 

51,682

 

 

1,229

 

9.64

%

 

 

98,052

 

 

1,177

 

4.81

%

Total interest earning assets

$

17,484,786

 

$

236,177

 

5.42

%

 

$

17,328,783

 

$

230,144

 

5.39

%

 

$

17,526,349

 

$

239,092

 

5.47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST BEARING LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market, interest bearing demand and savings

$

6,085,142

 

$

43,728

 

2.88

%

 

$

5,862,722

 

$

41,422

 

2.87

%

 

$

6,278,578

 

$

51,884

 

3.31

%

Time deposits

 

6,244,929

 

 

58,057

 

3.73

%

 

 

6,357,880

 

 

60,033

 

3.83

%

 

 

6,353,525

 

 

66,968

 

4.23

%

Total interest bearing deposits

 

12,330,071

 

 

101,785

 

3.31

%

 

 

12,220,602

 

 

101,455

 

3.37

%

 

 

12,632,103

 

 

118,852

 

3.77

%

FHLB and FRB borrowings

 

357,510

 

 

3,180

 

3.57

%

 

 

284,936

 

 

2,408

 

3.43

%

 

 

48,671

 

 

364

 

3.00

%

Subordinated debentures and convertible notes

 

107,550

 

 

2,243

 

8.25

%

 

 

107,198

 

 

2,224

 

8.30

%

 

 

106,150

 

 

2,421

 

9.02

%

Total interest bearing liabilities

$

12,795,131

 

$

107,208

 

3.36

%

 

$

12,612,736

 

$

106,087

 

3.41

%

 

$

12,786,924

 

$

121,637

 

3.82

%

Noninterest bearing demand deposits

 

3,362,934

 

 

 

 

 

 

3,347,070

 

 

 

 

 

 

3,464,085

 

 

 

 

Total funding liabilities/cost of funds

$

16,158,065

 

 

 

2.66

%

 

$

15,959,806

 

 

 

2.70

%

 

$

16,251,009

 

 

 

3.00

%

Net interest income/net interest spread

 

 

$

128,969

 

2.06

%

 

 

 

$

124,057

 

1.98

%

 

 

 

$

117,455

 

1.65

%

Net interest margin

 

 

 

 

2.96

%

 

 

 

 

 

2.90

%

 

 

 

 

 

2.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing demand deposits

$

3,362,934

 

$

 

%

 

$

3,347,070

 

$

 

%

 

$

3,464,085

 

$

 

%

Interest bearing deposits

 

12,330,071

 

 

101,785

 

3.31

%

 

 

12,220,602

 

 

101,455

 

3.37

%

 

 

12,632,103

 

 

118,852

 

3.77

%

Total deposits

$

15,693,005

 

$

101,785

 

2.60

%

 

$

15,567,672

 

$

101,455

 

2.64

%

 

$

16,096,188

 

$

118,852

 

2.96

%

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

 

Six Months Ended

 

6/30/2026

 

6/30/2025

 

 

 

Interest

 

Annualized

 

 

 

Interest

 

Annualized

 

Average

 

Income/

 

Average

 

Average

 

Income/

 

Average

 

Balance

 

Expense

 

Yield/Cost

 

Balance

 

Expense

 

Yield/Cost

INTEREST EARNING ASSETS:

 

 

 

 

 

 

 

 

 

 

 

Loans, including loans held for sale

$

14,740,359

 

$

417,297

 

5.71

%

 

$

13,944,180

 

$

406,324

 

5.88

%

Investment securities

 

2,185,663

 

 

39,577

 

3.65

%

 

 

2,138,471

 

 

33,661

 

3.17

%

Interest earning cash and deposits at other banks

 

429,433

 

 

7,586

 

3.56

%

 

 

653,106

 

 

13,988

 

4.32

%

FHLB stock and other investments

 

51,761

 

 

1,861

 

7.25

%

 

 

92,589

 

 

2,285

 

4.98

%

Total interest earning assets

$

17,407,216

 

$

466,321

 

5.40

%

 

$

16,828,346

 

$

456,258

 

5.47

%

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST BEARING LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

Money market, interest bearing demand and savings

$

5,974,547

 

$

85,150

 

2.87

%

 

$

5,867,886

 

$

102,503

 

3.52

%

Time deposits

 

6,301,092

 

 

118,090

 

3.78

%

 

 

6,015,687

 

 

129,934

 

4.36

%

Total interest bearing deposits

 

12,275,639

 

 

203,240

 

3.34

%

 

 

11,883,573

 

 

232,437

 

3.94

%

FHLB and FRB borrowings

 

321,423

 

 

5,588

 

3.51

%

 

 

84,835

 

 

720

 

1.71

%

Subordinated debentures and convertible notes

 

107,375

 

 

4,467

 

8.27

%

 

 

105,983

 

 

4,829

 

9.06

%

Total interest bearing liabilities

$

12,704,437

 

$

213,295

 

3.39

%

 

$

12,074,391

 

$

237,986

 

3.97

%

Noninterest bearing demand deposits

 

3,355,046

 

 

 

 

 

 

3,404,738

 

 

 

 

Total funding liabilities/cost of funds

$

16,059,483

 

 

 

2.68

%

 

$

15,479,129

 

 

 

3.10

%

Net interest income/net interest spread

 

 

$

253,026

 

2.01

%

 

 

 

$

218,272

 

1.50

%

Net interest margin

 

 

 

 

2.93

%

 

 

 

 

 

2.62

%

 

 

 

 

 

 

 

 

 

 

 

 

Cost of deposits:

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing demand deposits

$

3,355,046

 

$

 

%

 

$

3,404,738

 

$

 

%

Interest bearing deposits

 

12,275,639

 

 

203,240

 

3.34

%

 

 

11,883,573

 

 

232,437

 

3.94

%

Total deposits

$

15,630,685

 

$

203,240

 

2.62

%

 

$

15,288,311

 

$

232,437

 

3.07

%

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

 

Three Months Ended

 

Six Months Ended

AVERAGE BALANCES:

6/30/2026

 

3/31/2026

 

% change

 

6/30/2025

 

% change

 

6/30/2026

 

6/30/2025

 

% change

Gross loans, including loans held for sale

$

14,790,642

 

$

14,689,516

 

1

%

 

$

14,427,785

 

3

%

 

$

14,740,359

 

$

13,944,180

 

6

%

Interest earning assets

 

17,484,786

 

 

17,328,783

 

1

%

 

 

17,526,349

 

0

%

 

 

17,407,216

 

 

16,828,346

 

3

%

Goodwill and intangible assets

 

527,594

 

 

525,532

 

0

%

 

 

525,048

 

0

%

 

 

526,569

 

 

496,002

 

6

%

Total assets

 

18,707,236

 

 

18,521,103

 

1

%

 

 

18,728,721

 

0

%

 

 

18,614,684

 

 

17,911,091

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing demand deposits

 

3,362,934

 

 

3,347,070

 

0

%

 

 

3,464,085

 

(3

)%

 

 

3,355,046

 

 

3,404,738

 

(1

)%

Interest bearing deposits

 

12,330,071

 

 

12,220,602

 

1

%

 

 

12,632,103

 

(2

)%

 

 

12,275,639

 

 

11,883,573

 

3

%

Total deposits

 

15,693,005

 

 

15,567,672

 

1

%

 

 

16,096,188

 

(3

)%

 

 

15,630,685

 

 

15,288,311

 

2

%

Stockholders’ equity

 

2,293,446

 

 

2,299,203

 

0

%

 

 

2,224,489

 

3

%

 

 

2,296,309

 

 

2,186,495

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of Period

 

 

 

 

 

 

LOAN PORTFOLIO:

6/30/2026

 

3/31/2026

 

% change

 

6/30/2025

 

% change

 

 

 

 

 

 

Loans receivable (held for investment)

$

14,941,520

 

$

14,639,689

 

2

%

 

$

14,438,491

 

3

%

 

 

 

 

 

 

Loans held for sale

 

92,667

 

 

97,454

 

(5

)%

 

 

12,051

 

NM

 

 

 

 

 

 

 

Gross loans

$

15,034,187

 

$

14,737,143

 

2

%

 

$

14,450,542

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of Period

 

 

 

 

 

 

CRE LOANS HELD FOR INVESTMENT BY
PROPERTY TYPE:

6/30/2026

 

3/31/2026

 

% change

 

6/30/2025

 

% change

 

 

 

 

 

 

Multi-tenant retail

$

1,585,528

 

$

1,586,993

 

0

%

 

$

1,589,994

 

0

%

 

 

 

 

 

 

Industrial warehouses

 

1,303,250

 

 

1,282,413

 

2

%

 

 

1,260,991

 

3

%

 

 

 

 

 

 

Gas stations and car washes

 

1,177,756

 

 

1,160,481

 

1

%

 

 

1,106,007

 

6

%

 

 

 

 

 

 

Multifamily

 

1,171,422

 

 

1,189,481

 

(2

)%

 

 

1,211,785

 

(3

)%

 

 

 

 

 

 

Hotels/motels

 

820,725

 

 

826,422

 

(1

)%

 

 

754,449

 

9

%

 

 

 

 

 

 

Mixed-use facilities

 

728,108

 

 

677,227

 

8

%

 

 

671,144

 

8

%

 

 

 

 

 

 

Single-tenant retail

 

631,319

 

 

648,494

 

(3

)%

 

 

647,374

 

(2

)%

 

 

 

 

 

 

Office

 

348,708

 

 

331,939

 

5

%

 

 

340,329

 

2

%

 

 

 

 

 

 

All other

 

749,908

 

 

754,223

 

(1

)%

 

 

803,691

 

(7

)%

 

 

 

 

 

 

Total CRE loans

$

8,516,724

 

$

8,457,673

 

1

%

 

$

8,385,764

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of Period

 

 

 

 

 

 

DEPOSIT COMPOSITION:

6/30/2026

 

3/31/2026

 

% change

 

6/30/2025

 

% change

 

 

 

 

 

 

Noninterest bearing demand deposits

$

3,548,452

 

$

3,387,757

 

5

%

 

$

3,485,502

 

2

%

 

 

 

 

 

 

Money market, interest bearing demand, and savings

 

6,079,728

 

 

6,036,197

 

1

%

 

 

6,102,999

 

0

%

 

 

 

 

 

 

Time deposits

 

6,248,363

 

 

6,302,488

 

(1

)%

 

 

6,354,854

 

(2

)%

 

 

 

 

 

 

Total deposits

$

15,876,543

 

$

15,726,442

 

1

%

 

$

15,943,355

 

0

%

 

 

 

 

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

 

CAPITAL & CAPITAL RATIOS:

6/30/2026

 

3/31/2026

 

6/30/2025

Total stockholders’ equity

$

2,295,852

 

 

$

2,283,380

 

 

$

2,227,248

 

Total capital

$

2,183,849

 

 

$

2,171,355

 

 

$

2,095,343

 

Common equity tier 1 ratio

 

12.27

%

 

 

12.36

%

 

 

12.08

%

Tier 1 capital ratio

 

12.95

%

 

 

13.05

%

 

 

12.77

%

Total capital ratio

 

13.95

%

 

 

14.07

%

 

 

13.78

%

Leverage ratio

 

11.07

%

 

 

11.11

%

 

 

10.58

%

Total risk weighted assets

$

15,658,083

 

 

$

15,428,025

 

 

$

15,209,212

 

Book value per common share

$

17.97

 

 

$

17.86

 

 

$

17.38

 

Tangible common equity (“TCE”) per share (1)

$

13.85

 

 

$

13.73

 

 

$

13.28

 

TCE ratio (1)

 

9.58

%

 

 

9.68

%

 

 

9.44

%

(1)

TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR CREDIT LOSSES CHANGES:

Three Months Ended

 

Six Months Ended

6/30/2026

 

3/31/2026

 

12/31/2025

 

9/30/2025

 

6/30/2025

 

6/30/2026

 

6/30/2025

Balance at beginning of period

$

155,114

 

 

$

156,661

 

 

$

152,509

 

 

$

149,505

 

 

$

147,412

 

 

$

156,661

 

 

$

150,527

 

Initial allowance for purchased credit deteriorated (“PCD”) loans and purchased seasoned loans (“PSL”) acquired (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

3,971

 

 

 

 

 

 

3,971

 

Provision for losses on loans

 

7,100

 

 

 

9,200

 

 

 

7,800

 

 

 

8,100

 

 

 

10,092

 

 

 

16,300

 

 

 

15,292

 

Recoveries

 

203

 

 

 

322

 

 

 

1,694

 

 

 

1,517

 

 

 

2,844

 

 

 

525

 

 

 

3,077

 

Charge offs

 

(9,199

)

 

 

(11,069

)

 

 

(5,342

)

 

 

(6,613

)

 

 

(14,814

)

 

 

(20,268

)

 

 

(23,362

)

Balance at end of period

$

153,218

 

 

$

155,114

 

 

$

156,661

 

 

$

152,509

 

 

$

149,505

 

 

$

153,218

 

 

$

149,505

 

(2)

During the fourth quarter of 2025, the Company adopted ASU 2025-08 effective January 1, 2025, and applied the guidance to the acquisition of Territorial Bancorp, which was completed on April 2, 2025. The presentation of prior periods has been adjusted accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6/30/2026

 

3/31/2026

 

12/31/2025

 

9/30/2025

 

6/30/2025

 

 

 

 

Allowance for unfunded loan commitments

$

2,453

 

 

$

2,783

 

 

$

3,333

 

 

$

3,933

 

 

$

3,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

6/30/2026

 

3/31/2026

 

12/31/2025

 

9/30/2025

 

6/30/2025

 

6/30/2026

 

6/30/2025

Provision for losses on loans

$

7,100

 

 

$

9,200

 

 

$

7,800

 

 

$

8,100

 

 

$

10,092

 

 

$

16,300

 

 

$

15,292

 

(Credit) provision for unfunded loan commitments

 

(330

)

 

 

(550

)

 

 

(600

)

 

 

610

 

 

 

1,000

 

 

 

(880

)

 

 

600

 

Provision for credit losses

$

6,770

 

 

$

8,650

 

 

$

7,200

 

 

$

8,710

 

 

$

11,092

 

 

$

15,420

 

 

$

15,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

NET CHARGE OFFS (RECOVERIES):

6/30/2026

 

3/31/2026

 

12/31/2025

 

9/30/2025

 

6/30/2025

 

6/30/2026

 

6/30/2025

CRE loans

$

389

 

 

$

817

 

 

$

(1,467

)

 

$

(933

)

 

$

(843

)

 

$

1,206

 

 

$

56

 

C&I loans

 

8,656

 

 

 

9,931

 

 

 

5,169

 

 

 

5,978

 

 

 

11,829

 

 

 

18,587

 

 

 

19,213

 

Residential mortgage and other loans

 

(49

)

 

 

(1

)

 

 

(54

)

 

 

51

 

 

 

984

 

 

 

(50

)

 

 

1,016

 

Net charge offs

$

8,996

 

 

$

10,747

 

 

$

3,648

 

 

$

5,096

 

 

$

11,970

 

 

$

19,743

 

 

$

20,285

 

Net charge offs/average loans (annualized)

 

0.24

%

 

 

0.29

%

 

 

0.10

%

 

 

0.14

%

 

 

0.33

%

 

 

0.27

%

 

 

0.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONPERFORMING ASSETS:

6/30/2026

 

3/31/2026

 

12/31/2025

 

9/30/2025

 

6/30/2025

Loans on nonaccrual status (1)

$

111,973

 

 

$

109,512

 

 

$

131,747

 

 

$

110,010

 

 

$

110,739

 

Accruing delinquent loans past due 90 days or more

 

515

 

 

 

10,642

 

 

 

3,943

 

 

 

2,149

 

 

 

2,149

 

Total nonperforming loans

 

112,488

 

 

 

120,154

 

 

 

135,690

 

 

 

112,159

 

 

 

112,888

 

Other real estate owned (“OREO”)

 

365

 

 

 

365

 

 

 

365

 

 

 

 

 

 

 

Total nonperforming assets

$

112,853

 

 

$

120,519

 

 

$

136,055

 

 

$

112,159

 

 

$

112,888

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets/total assets

 

0.59

%

 

 

0.65

%

 

 

0.73

%

 

 

0.61

%

 

 

0.61

%

Nonperforming loans/loans receivable

 

0.75

%

 

 

0.82

%

 

 

0.92

%

 

 

0.77

%

 

 

0.78

%

Nonaccrual loans/loans receivable

 

0.75

%

 

 

0.75

%

 

 

0.90

%

 

 

0.75

%

 

 

0.77

%

Allowance for credit losses/loans receivable

 

1.03

%

 

 

1.06

%

 

 

1.07

%

 

 

1.05

%

 

 

1.04

%

Allowance for credit losses/nonperforming loans

 

136.21

%

 

 

129.10

%

 

 

115.46

%

 

 

135.98

%

 

 

132.44

%

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $17.1 million, $19.4 million, $15.6 million, $15.3 million, and $15.3 million, at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.

 

 

 

 

 

 

 

 

 

 

NONACCRUAL LOANS BY TYPE:

6/30/2026

 

3/31/2026

 

12/31/2025

 

9/30/2025

 

6/30/2025

CRE loans

$

63,647

 

$

52,920

 

$

65,106

 

$

54,016

 

$

55,368

C&I loans

 

31,724

 

 

42,538

 

 

53,136

 

 

45,494

 

 

46,945

Residential mortgage and other loans

 

16,602

 

 

14,054

 

 

13,505

 

 

10,500

 

 

8,426

Total nonaccrual loans

$

111,973

 

$

109,512

 

$

131,747

 

$

110,010

 

$

110,739

 

 

 

 

 

 

 

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

 

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:

6/30/2026

 

3/31/2026

 

12/31/2025

 

9/30/2025

 

6/30/2025

30 - 59 days past due

$

11,700

 

$

29,621

 

$

19,056

 

$

15,788

 

$

4,909

60 - 89 days past due

 

7,306

 

 

59

 

 

4,244

 

 

5,117

 

 

2,843

Total accruing delinquent loans 30-89 days past due

$

19,006

 

$

29,680

 

$

23,300

 

$

20,905

 

$

7,752

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE:

6/30/2026

 

3/31/2026

 

12/31/2025

 

9/30/2025

 

6/30/2025

CRE loans

$

15,917

 

$

11,819

 

$

12,064

 

$

14,872

 

$

4,377

C&I loans

 

810

 

 

604

 

 

2,209

 

 

3,356

 

 

1,084

Residential mortgage and other loans

 

2,279

 

 

17,257

 

 

9,027

 

 

2,677

 

 

2,291

Total accruing delinquent loans 30-89 days past due

$

19,006

 

$

29,680

 

$

23,300

 

$

20,905

 

$

7,752

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CRITICIZED LOANS:

6/30/2026

 

3/31/2026

 

12/31/2025

 

9/30/2025

 

6/30/2025

Special mention loans

$

128,994

 

$

72,668

 

$

94,003

 

$

131,384

 

$

137,313

Classified loans

 

205,283

 

 

252,410

 

 

257,113

 

 

241,483

 

 

277,418

Total criticized loans

$

334,277

 

$

325,078

 

$

351,116

 

$

372,867

 

$

414,731

Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)

Reconciliation of GAAP financial measures to non-GAAP financial measures

Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below.

 

 

 

 

 

 

 

 

 

 

TANGIBLE COMMON EQUITY (“TCE”)

6/30/2026

 

3/31/2026

 

6/30/2025

 

 

 

 

Total stockholders’ equity

$

2,295,852

 

 

$

2,283,380

 

 

$

2,227,248

 

 

 

 

 

Goodwill and core deposit intangible assets, net

 

(526,890

)

 

 

(528,021

)

 

 

(525,428

)

 

 

 

 

TCE

$

1,768,962

 

 

$

1,755,359

 

 

$

1,701,820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

18,991,916

 

 

$

18,656,864

 

 

$

18,550,148

 

 

 

 

 

Goodwill and core deposit intangible assets, net

 

(526,890

)

 

 

(528,021

)

 

 

(525,428

)

 

 

 

 

Tangible assets

$

18,465,026

 

 

$

18,128,843

 

 

$

18,024,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TCE ratio (TCE / tangible assets)

 

9.58

%

 

 

9.68

%

 

 

9.44

%

 

 

 

 

Common shares outstanding

 

127,741,836

 

 

 

127,822,689

 

 

 

128,124,458

 

 

 

 

 

Book value per share (GAAP)

$

17.97

 

 

$

17.86

 

 

$

17.38

 

 

 

 

 

TCE per share

$

13.85

 

 

$

13.73

 

 

$

13.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

RETURN ON AVERAGE TANGIBLE COMMON EQUITY (“ROTCE”)

6/30/2026

 

3/31/2026

 

6/30/2025

 

6/30/2026

 

6/30/2025

Average stockholders’ equity

$

2,293,446

 

 

$

2,299,203

 

 

$

2,224,489

 

 

$

2,296,309

 

 

$

2,186,495

 

Average goodwill and core deposit intangible assets, net

 

(527,594

)

 

 

(525,532

)

 

 

(525,048

)

 

 

(526,569

)

 

 

(496,002

)

Average TCE

$

1,765,852

 

 

$

1,773,671

 

 

$

1,699,441

 

 

$

1,769,740

 

 

$

1,690,493

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (GAAP)

$

33,031

 

 

$

29,540

 

 

$

(24,750

)

 

$

62,571

 

 

$

(3,654

)

ROTCE (annualized)

 

7.48

%

 

 

6.66

%

 

 

(5.83

)%

 

 

7.07

%

 

 

(0.43

)%

 

 

 

 

 

 

 

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

PRE-PROVISION NET REVENUE (“PPNR”)

6/30/2026

 

3/31/2026

 

% change

 

6/30/2025

 

% change

 

6/30/2026

 

6/30/2025

 

% change

Net interest income

$

128,969

 

 

$

124,057

 

 

4

%

 

$

117,455

 

 

10

%

 

$

253,026

 

 

$

218,272

 

 

16

%

Noninterest income

 

18,850

 

 

 

16,967

 

 

11

%

 

 

(22,956

)

 

NM

 

 

 

35,817

 

 

 

(7,268

)

 

NM

 

Revenue

 

147,819

 

 

 

141,024

 

 

5

%

 

 

94,499

 

 

56

%

 

 

288,843

 

 

 

211,004

 

 

37

%

Less: Noninterest expense

 

98,464

 

 

 

94,455

 

 

4

%

 

 

109,473

 

 

(10

)%

 

 

192,919

 

 

 

193,334

 

 

%

PPNR

$

49,355

 

 

$

46,569

 

 

6

%

 

$

(14,974

)

 

NM

 

 

$

95,924

 

 

$

17,670

 

 

443

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notable items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on investment portfolio repositioning

$

 

 

$

 

 

 

 

$

38,856

 

 

 

 

$

 

 

$

38,856

 

 

 

FDIC special assessment expense (reversal)

 

 

 

 

(58

)

 

 

 

 

 

 

 

 

 

(58

)

 

 

 

 

 

Merger related costs

 

2,058

 

 

 

234

 

 

 

 

 

17,281

 

 

 

 

 

2,292

 

 

 

19,800

 

 

 

Total notable items included in PPNR

 

2,058

 

 

 

176

 

 

 

 

 

56,137

 

 

 

 

 

2,234

 

 

 

58,656

 

 

 

PPNR, excluding notable items

$

51,413

 

 

$

46,745

 

 

10

%

 

$

41,163

 

 

25

%

 

$

98,158

 

 

$

76,326

 

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

PROFITABILITY EXCLUDING NOTABLE ITEMS

6/30/2026

 

3/31/2026

 

% change

 

6/30/2025

 

% change

 

6/30/2026

 

6/30/2025

 

% change

Net income (loss) (GAAP)

$

33,031

 

 

$

29,540

 

 

12

%

 

$

(24,750

)

 

NM

 

 

$

62,571

 

 

$

(3,654

)

 

NM

 

Notable items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger-related provision for credit losses

 

 

 

 

 

 

 

 

 

553

 

 

 

 

 

 

 

 

553

 

 

 

Loss on investment portfolio repositioning

 

 

 

 

 

 

 

 

 

38,856

 

 

 

 

 

 

 

 

38,856

 

 

 

FDIC special assessment expense (reversal)

 

 

 

 

(58

)

 

 

 

 

 

 

 

 

 

(58

)

 

 

 

 

 

Merger related costs

 

2,058

 

 

 

234

 

 

 

 

 

17,281

 

 

 

 

 

2,292

 

 

 

19,800

 

 

 

Total notable items included in pre-tax income

 

2,058

 

 

 

176

 

 

 

 

 

56,690

 

 

 

 

 

2,234

 

 

 

59,209

 

 

 

Tax effect on notable items in pre-tax income

 

(590

)

 

 

(50

)

 

 

 

 

(12,221

)

 

 

 

 

(640

)

 

 

(12,962

)

 

 

Notable impact from California state tax apportionment law change

 

 

 

 

 

 

 

 

 

4,878

 

 

 

 

 

 

 

 

4,878

 

 

 

Total notable items, net of tax

 

1,468

 

 

 

126

 

 

 

 

 

49,347

 

 

 

 

 

1,594

 

 

 

51,125

 

 

 

Net income excluding notable items

$

34,499

 

 

$

29,666

 

 

16

%

 

$

24,597

 

 

40

%

 

$

64,165

 

 

$

47,471

 

 

35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted common shares

 

128,308,861

 

 

 

128,723,654

 

 

 

 

 

128,001,605

 

 

 

 

 

128,474,397

 

 

 

124,426,400

 

 

 

EPS excluding notable items

$

0.27

 

 

$

0.23

 

 

17

%

 

$

0.19

 

 

40

%

 

$

0.50

 

 

$

0.38

 

 

31

%

Average assets

$

18,707,236

 

 

$

18,521,103

 

 

 

 

$

18,728,721

 

 

 

 

$

18,614,684

 

 

$

17,911,091

 

 

 

ROA excluding notable items (annualized)

 

0.74

%

 

 

0.64

%

 

 

 

 

0.53

%

 

 

 

 

0.69

%

 

 

0.53

%

 

 

Average equity

$

2,293,446

 

 

$

2,299,203

 

 

 

 

$

2,224,489

 

 

 

 

$

2,296,309

 

 

$

2,186,495

 

 

 

ROE excluding notable items (annualized)

 

6.02

%

 

 

5.16

%

 

 

 

 

4.42

%

 

 

 

 

5.59

%

 

 

4.34

%

 

 

Average TCE

$

1,765,852

 

 

$

1,773,671

 

 

 

 

$

1,699,441

 

 

 

 

$

1,769,740

 

 

$

1,690,493

 

 

 

ROTCE excluding notable items (annualized)

 

7.81

%

 

 

6.69

%

 

 

 

 

5.79

%

 

 

 

 

7.25

%

 

 

5.62

%

 

 

 

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

 

 

Three Months Ended

 

Six Months Ended

NONINTEREST INCOME EXCLUDING NOTABLE ITEMS

6/30/2026

 

3/31/2026

 

6/30/2025

 

6/30/2026

 

6/30/2025

Noninterest income (loss)

$

18,850

 

 

$

16,967

 

 

$

(22,956

)

 

$

35,817

 

 

$

(7,268

)

Notable items:

 

 

 

 

 

 

 

 

 

Loss on investment portfolio repositioning

 

 

 

 

 

 

 

38,856

 

 

 

 

 

 

38,856

 

Noninterest income excluding notable items

$

18,850

 

 

$

16,967

 

 

$

15,900

 

 

$

35,817

 

 

$

31,588

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

EFFICIENCY RATIO EXCLUDING NOTABLE ITEMS

6/30/2026

 

3/31/2026

 

6/30/2025

 

6/30/2026

 

6/30/2025

Noninterest expense

$

98,464

 

 

$

94,455

 

 

$

109,473

 

 

$

192,919

 

 

$

193,334

 

Notable items:

 

 

 

 

 

 

 

 

 

FDIC special assessment expense reversal

 

 

 

 

58

 

 

 

 

 

 

58

 

 

 

 

Merger related costs

 

(2,058

)

 

 

(234

)

 

 

(17,281

)

 

 

(2,292

)

 

 

(19,800

)

Noninterest expense excluding notable items

$

96,406

 

 

$

94,279

 

 

$

92,192

 

 

$

190,685

 

 

$

173,534

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

147,819

 

 

$

141,024

 

 

$

94,499

 

 

$

288,843

 

 

$

211,004

 

Notable items:

 

 

 

 

 

 

 

 

 

Loss on investment portfolio repositioning

 

 

 

 

 

 

 

38,856

 

 

 

 

 

 

38,856

 

Revenue excluding notable items

$

147,819

 

 

$

141,024

 

 

$

133,355

 

 

$

288,843

 

 

$

249,860

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio excluding notable items

 

65.22

%

 

 

66.85

%

 

 

69.13

%

 

 

66.02

%

 

 

69.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

EFFECTIVE TAX RATE EXCLUDING NOTABLE ITEMS

6/30/2026

 

3/31/2026

 

6/30/2025

 

6/30/2026

 

6/30/2025

Income (loss) before income taxes

$

42,585

 

 

$

37,919

 

 

$

(26,066

)

 

$

80,504

 

 

$

1,778

 

Notable items before tax effect

 

2,058

 

 

 

176

 

 

 

56,690

 

 

 

2,234

 

 

 

59,209

 

Income before tax excluding notable items

$

44,643

 

 

$

38,095

 

 

$

30,624

 

 

$

82,738

 

 

$

60,987

 

 

 

 

 

 

 

 

 

 

 

GAAP income tax provision (benefit)

$

9,554

 

 

$

8,379

 

 

$

(1,316

)

 

$

17,933

 

 

$

5,432

 

Tax effect on notable items in pre-tax income

 

590

 

 

 

50

 

 

 

12,221

 

 

 

640

 

 

 

12,962

 

Notable impact from California state tax apportionment law change

 

 

 

 

 

 

 

(4,878

)

 

 

 

 

 

(4,878

)

Income tax provision excluding notable items

$

10,144

 

 

$

8,429

 

 

$

6,027

 

 

$

18,573

 

 

$

13,516

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate excluding notable items

 

22.72

%

 

 

22.13

%

 

 

19.68

%

 

 

22.45

%

 

 

22.16

%

 

 

 

 

 

 

 

 

 

 

 

Contacts

Julianna Balicka
Executive Vice President & Chief Financial Officer
InvestorRelations@bankofhope.com

Maxime Olivan
Senior Vice President & Investor Relations Manager
InvestorRelations@bankofhope.com

Hope Bancorp, Inc.

NASDAQ:HOPE

Release Versions

Contacts

Julianna Balicka
Executive Vice President & Chief Financial Officer
InvestorRelations@bankofhope.com

Maxime Olivan
Senior Vice President & Investor Relations Manager
InvestorRelations@bankofhope.com

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