Group 1 - Hope Bancorp, Inc. reported a loss for the second quarter of 2025, attributed to one-time merger-related expenses from the acquisition of Territorial Bancorp [1] - The company's earnings were negatively impacted in the second quarter [1]

Group 1 - The stock of Hope Bancorp, Inc. (HOPE) is experiencing significant attention due to high implied volatility in the options market, particularly the Sept. 19, 2025 $7.5 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in the stock's price, potentially due to an upcoming event [2] - Hope Bancorp currently holds a Zacks Rank 3 (Hold) in the Banks – West industry, which is in the top 28% of the Zacks Industry Rank, indicating a relatively stable outlook [3] Group 2 - Over the past 60 days, there has been mixed sentiment among analysts regarding earnings estimates for Hope Bancorp, with one analyst increasing and another decreasing their estimates, resulting in a slight increase in the Zacks Consensus Estimate from 25 cents to 26 cents per share [3] - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility, hoping the stock does not move as much as expected by expiration [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-50245 HOPE BANCORP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identificati ...

Financial Data and Key Metrics Changes - Net income for Q2 2025, excluding notable items, totaled $24.5 million, up 7% from $22.9 million in Q1 2025 [5] - Reported a net loss of $27.9 million for Q2 2025 due to one-time losses from selling lower-yielding legacy securities and merger-related items [5] - Pretax pre-provision net revenue, excluding notable items, grew to $41.2 million in Q2 2025, up 17% from $35.2 million in Q1 2025 [6] Business Line Data and Key Metrics Changes - Total deposits grew to $15.9 billion, an increase of 10% from the prior quarter, driven by the acquisition of Territorial Bancorp [8] - Loans receivable increased to $14.4 billion, up 8% from the end of the prior quarter, reflecting the addition of Territorial's loan portfolio [9] - Organic loan production increased by 57% from Q1 2025, contributing to modest net growth in the legacy portfolio [10] Market Data and Key Metrics Changes - Average cost of interest-bearing deposits declined by 37 basis points quarter over quarter, and average cost of total deposits decreased by 22 basis points [8] - Broker deposits decreased by $183 million or 19% quarter over quarter, with the broker deposits ratio declining to 5% of total deposits [9] Company Strategy and Development Direction - The acquisition of Territorial Bancorp is seen as a strategic move to enter the Hawaii market, enhancing growth opportunities [4] - Strengthening the deposit franchise remains a key priority, with a focus on reducing broker deposit exposure and improving the cost of funds [8] Management's Comments on Operating Environment and Future Outlook - Management expects loan growth in 2025 to be at a high single-digit percentage rate, driven by improved frontline productivity and hiring [24] - The company anticipates net interest income growth in the high single-digit percentage range for 2025, despite the negative impact of delayed Fed rate cuts [25] Other Important Information - The company declared a quarterly common stock dividend of $0.14 per share, payable on August 15, 2025 [7] - The effective tax rate is expected to be approximately 14% for the third and fourth quarters, reflecting changes in California state tax apportionment law [26] Q&A Session Summary Question: Any updates on fee income expectations for the second half of the year? - Management highlighted positive drivers for fee income growth, including customer swap fee income and loan-related fees [30] Question: What is the average yield on new loan production? - The average yield on new production was approximately 6.76% [67] Question: What is the expected impact of the Territorial acquisition on cost savings? - Management indicated that there are still integration and cost savings expected in the second half of the year, but specifics will be shared later [35] Question: How is the company viewing asset quality in the current environment? - Management expressed cautious optimism regarding asset quality, noting a decline in criticized loans and stable overall credit quality [50] Question: What is the target loan-to-deposit ratio? - The target loan-to-deposit ratio is up to 95%, with current levels below 91% [57]

Financial Data and Key Metrics Changes - Net income for the second quarter of 2025, excluding notable items, totaled $24,500,000, up 7% from $22,900,000 in the preceding first quarter [5] - Reported a net loss of $27,900,000 for the second quarter due to one-time losses from selling lower yielding legacy securities and merger-related items [5] - Pretax pre-provision net revenue excluding notable items grew to $41,200,000, up 17% from $35,200,000 in the first quarter [6] - Net interest income totaled $118,000,000 for the second quarter, an increase of 17% from the prior quarter [11] - Net interest margin increased by 15 basis points quarter over quarter to 2.69 for the second quarter [14] Business Line Data and Key Metrics Changes - Total deposits grew to $15,900,000,000, an increase of 10% from the end of the prior quarter [7] - Loans receivable of $14,400,000,000 were up 8% from the end of the prior quarter, reflecting the addition of Territorial's loan portfolio [8] - Organic loan production increased 57% from the first quarter level [8] - Noninterest income of $15,900,000, excluding notable losses, was up 44% year over year [15] Market Data and Key Metrics Changes - Broker deposits decreased by $183,000,000 or 19% quarter over quarter, with the broker deposits ratio declining to 5% of total deposits [8] - Criticized loans declined by $34,000,000 or 8% quarter over quarter [19] - Non-performing assets totaled $113,000,000, representing 61 basis points of total assets, up from 49 basis points as of March 31 [19] Company Strategy and Development Direction - The acquisition of Territorial Bancorp is seen as a strategic move to enter the important Hawaii market [4] - Strengthening the deposit franchise remains a key priority, with a focus on reducing broker deposits and improving the cost of funds [7] - The company expects loan growth at a high single-digit percentage rate for 2025, driven by improved frontline productivity and hiring [22] Management Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about asset quality, despite some uncertainties in the macroeconomic environment [51] - The company anticipates net interest income growth in the high single-digit percentage range for 2025, despite the negative impact of fewer Fed funds rate cuts [22] - The effective tax rate is expected to be approximately 14% in the third and fourth quarters due to changes in California state tax apportionment law [24] Other Important Information - The Board of Directors declared a quarterly common stock dividend of $0.14 per share [6] - The company plans to continue recognizing pretax acquisition accounting adjustments associated with the Territorial transaction on a quarterly basis [12] Q&A Session Summary Question: Fee income guidance for the second half of the year - Management highlighted positive drivers such as customer swap fee income growth and improved loan-related fee income [30] Question: Spot rate on deposits and assumptions for the outlook - The spot rate at June was 2.93%, with expectations for higher betas on deposit products during upcoming rate cuts [31][32] Question: Cost savings from the Territorial acquisition - Management indicated that there are still more integration and cost savings expected in the second half of the year, but specifics will be shared later [35] Question: Loan growth expectations and hiring impact - Management confirmed ongoing hiring of experienced bankers to drive loan production, with expectations for increased loan growth in the latter half of the year [47] Question: Asset quality and credit outlook - Management expressed cautious optimism regarding asset quality, noting a decline in criticized assets and manageable levels of problem loans [51] Question: One-time costs related to the acquisition - Management indicated there will be a couple million more in one-time costs in the third and fourth quarters [65] Question: Average yield on new loan production - The average yield on new production was approximately 6.76% [68]

Financial Performance - GAAP net loss for 2Q25 was $(27.9) million, or $(0.22) per diluted share[4], while net income excluding notable items was $24.5 million, or $0.19 per diluted share[4] - Net interest income before provision for credit losses increased by 17% QoQ to $117.53 million[64] - Noninterest income totaled $(23) million, including a net loss of $39 million from legacy securities AFS repositioning[48]; excluding notable items, noninterest income was $16 million, up 1% QoQ and 44% YoY[48] - GAAP noninterest expense was $109 million, including merger-related costs[52]; excluding notable items, noninterest expense was $92 million, up 13% QoQ[52] Balance Sheet & Capital - Total deposits reached $15.9 billion at 6/30/25, up 10% QoQ, largely due to the Territorial acquisition[5, 18] - Loans receivable totaled $14.4 billion at 6/30/25, up 8% QoQ, also largely reflecting the Territorial acquisition[5, 21] - Total capital ratio was 13.76% at 6/30/25[5] - Tangible common equity (TCE) ratio was 9.43% at 6/30/25[5] Asset Quality - Nonperforming assets (NPA) were $113 million, or 0.61% of total assets at 6/30/25[5] - Criticized loans decreased by 8% QoQ to 2.87% of total loans[5] - Net charge-offs (NCO) were $12 million in 2Q25, or 33bps of average loans, annualized[59] Strategic Initiatives - The acquisition of Territorial Bancorp Inc added $1.7 billion of stable, low-cost deposits and $1.0 billion of residential mortgage loans[5] - Repositioned $418 million of legacy investment securities available-for-sale (AFS) in June 2025, expected to contribute approximately $12 million to interest income annually[5, 36] Outlook - The company anticipates high single-digit % growth for end-of-period loans in 2025[60] - The company anticipates high single-digit % growth for net interest income in 2025[60] - The company anticipates upper-20s % growth for noninterest income (excluding notable items) in 2025[60]

Core Insights - Value investing focuses on identifying stocks trading below their intrinsic value, allowing investors to benefit as market prices align with true company value over time [1] - Earnings yield, calculated as earnings per share divided by stock price, is a useful metric for identifying undervalued stocks, with a higher yield indicating potential undervaluation [2][4] - A screening criterion of an earnings yield greater than 10% is established, alongside other parameters like estimated EPS growth and average daily volume [6][7] Company Highlights - IAMGOLD Corporation (IAG) is a gold exploration and mining company with projected earnings growth of 44% and 40% for 2025 and 2026, respectively, and currently holds a Zacks Rank 1 [9] - Plains GP Holdings (PAGP) is involved in crude oil and refined products transportation, with earnings growth estimates of 206% and 24% for 2025 and 2026, respectively, also holding a Zacks Rank 1 [10][11] - Hope Bancorp (HOPE) provides commercial banking services, with earnings growth estimates of 12% and 40% for 2025 and 2026, and holds a Zacks Rank 1 [12] - CommScope Holding Company, Inc. (COMM) offers communication network infrastructure solutions, with an extraordinary earnings growth estimate of 3,167% for 2025 and 28% for 2026, holding a Zacks Rank 2 [13] - Harmony Biosciences Holdings Inc. (HRMY) focuses on therapies for rare neurological disorders, with earnings growth estimates of 22% and 32% for 2025 and 2026, and holds a Zacks Rank 2 [14]

News Release HOPE BANCORP REPORTS 2025 SECOND QUARTER FINANCIAL RESULTS LOS ANGELES – July 22, 2025 – 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 ended June 30, 2025. For the three months ended June 30, 2025, the Company recorded a net loss of $27.9 million, or $(0.22) per diluted common share, which reflected the impact of a securities portfolio repositioning, the completion of the Ter ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Hope Bancorp (HOPE) , which belongs to the Zacks Banks - West industry.This bank holding company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 5.41%.For the most recent quarter, Hope Bancorp was expected to post earnings of $0.19 per share, but it r ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Hope Bancorp despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Hope Bancorp is expected to report quarterly earnings of $0.21 per share, reflecting a -4.6% change year-over-year, while revenues are projected at $125.92 million, an increase of 7.7% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 5.63% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +6.02% for Hope Bancorp, suggesting a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Hope Bancorp exceeded the expected earnings of $0.18 per share by delivering $0.19, resulting in a surprise of +5.56% [13]. Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Investment Considerations - While an earnings beat can influence stock movement, other factors may also play a significant role in determining stock performance post-earnings release [15].