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 fourth quarter and full year ended December 31, 2025. For the three months ended December 31, 2025, the Company recorded net income of $34.5 million, or $0.27 per diluted common share, up 12% from net income of $30.8 million, or $0.24 per diluted common share, for the three months ended September 30, 2025, and up 42. ...

Core Viewpoint - Options markets are indicating significant post-earnings volatility for several stocks, particularly regional banks, with expectations of price swings being amplified by the Federal Reserve's policy decision [1][2]. Group 1: Implied Moves and Earnings Reports - Options markets are pricing in double-digit to near-50% post-earnings swings for a group of regional banks [2]. - Ten stocks are highlighted with implied moves of approximately 30% or more ahead of their earnings reports this week [3]. - Capitol Federal Financial, Inc. is expected to have the highest implied move at 48.48%, with earnings per share projected at 15 cents and revenue at $57.51 million [5][6]. - First Financial Bancorp follows closely with a 47.50% implied move, expecting earnings per share of 56 cents and revenue of $245.83 million [5][6]. - Other notable stocks include Provident Financial Services, Inc. (39.22% implied move), First BanCorp (39.09% implied move), and West Bancorporation, Inc. (35.92% implied move) [5][6]. Group 2: Specific Stock Details - Beacon Financial Corp. anticipates earnings per share of 79 cents and revenue of $224.81 million, with an implied move of 29.48% [5]. - ConnectOne Bancorp, Inc. expects earnings per share of 73 cents and revenue of $110.15 million, with an implied move of 29.51% [5]. - High Tide Inc., the only non-bank on the list, is set to report earnings per share of $0.01 and revenue of $114.95 million, with an implied move of 30.12% [5]. - Primis Financial Corp. is projected to have earnings per share of $1.10 and revenue of $34.98 million, with an implied move of 31.17% [5]. - Hope Bancorp, Inc. expects earnings per share of 26 cents and revenue of $142.91 million, with an implied move of 32.94% [5].

LOS ANGELES--(BUSINESS WIRE)--Hope Bancorp, Inc. (NASDAQ: HOPE) (the "Company†), the holding company of Bank of Hope (the "Bank†), today announced that Scott Yoon-Suk Whang has elected not to stand for re-election and will be retiring from his position as a member of the Boards of Directors of the Company and the Bank in connection with the Company's 2026 Annual Meeting of Stockholders. "On behalf of the Board, I would like to thank Director Whang for his many years of service and dedication,†said Kevin ...

Core Viewpoint - Hope Bancorp, Inc. will report its financial results for the fourth quarter and full year ended December 31, 2025, on January 27, 2026, before market opening [1] Financial Results Announcement - The financial results will be discussed in a conference call scheduled for January 27, 2026, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time [2] - A presentation deck will be available on the investor relations website to accompany the earnings call [2] Conference Call Participation - Institutional investors and analysts can access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) [3] - Other interested parties can participate via a live webcast available on the investor relations website [3] Webcast Availability - The archived webcast will be available for one year after the live event on the investor relations website [4] - A telephonic replay of the call will be available for one week through February 3, 2026, with specific access codes provided [4] Company Overview - Hope Bancorp, Inc. is the holding company for Bank of Hope, which has total assets of $18.51 billion as of September 30, 2025 [5] - The company operates as the largest regional bank serving multicultural customers across the continental United States and Hawaii [5] - Bank of Hope offers a wide range of banking products and services, including commercial and consumer lending, treasury management, and international trade finance [5] - The bank operates 45 full-service branches in various states and 29 branches in Hawaii, along with additional loan production offices [5]

Company Overview - Hope Bancorp (HOPE) shares increased by 5.5% to $11.54 in the last trading session, supported by higher-than-average trading volume [1] - The stock has gained 4.8% over the past four weeks, indicating a positive trend [1] Earnings Expectations - Hope Bancorp is expected to report quarterly earnings of $0.26 per share, reflecting a year-over-year increase of 30% [2] - Projected revenues for the upcoming report are $145 million, which is a 22.9% increase compared to the same quarter last year [2] Market Sentiment - The recent bullish sentiment among investors is attributed to a 25-basis-point interest rate cut and a dovish stance from the Federal Reserve [1] - The consensus EPS estimate for Hope Bancorp has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without earnings estimate revisions [3] Industry Comparison - Hope Bancorp is part of the Zacks Banks - West industry, where First Hawaiian (FHB) also operates [3] - First Hawaiian's stock rose by 3.5% to $26.06, with a 1.2% return over the past month [3] - First Hawaiian's consensus EPS estimate has changed by -0.2% to $0.55, representing a year-over-year increase of 34.2% [4]

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Financial Performance - Net interest income for the three months ended September 30, 2025, was $126.64 million, an increase from $104.81 million in the same period of 2024, representing a growth of 20.8%[215] - Net income for the three months ended September 30, 2025, was $30.84 million, up from $24.16 million in 2024, reflecting a growth of 27.2%[215] - Net income for Q3 2025 was $30.8 million, or $0.24 per diluted share, an increase of 27.5% from $24.2 million, or $0.20 per diluted share in Q3 2024[228] - Year-to-date net income for the nine months ended September 30, 2025, was $24.1 million, or $0.19 per diluted share, a decrease of 68.1% from $75.3 million, or $0.62 per diluted share in the same period of 2024[229] - Net interest income for the nine months ended September 30, 2025, was $345.0 million, an increase of 5.9% from $325.7 million in the same period of 2024[234] - Noninterest income for the three months ended September 30, 2025, was $15.4 million, an increase of $3.5 million or 30.0% compared to $11.8 million for the same period in 2024[253] Asset and Equity Growth - Total assets of Hope Bancorp, Inc. reached $18.51 billion as of September 30, 2025, following the acquisition of Territorial Savings[212] - Total assets as of September 30, 2025, were $18.55 billion, compared to $17.37 billion as of September 30, 2024[243] - Total stockholders' equity as of September 30, 2025, was $2,255.9 million, compared to $2,169.8 million as of September 30, 2024[225] - Stockholders' equity rose to $2.26 billion at September 30, 2025, up from $2.13 billion at December 31, 2024, an increase of $121.4 million[319] - Total equity investments increased to $88.7 million, up $48.8 million or 122.1% from $39.9 million at December 31, 2024[283] Loan and Deposit Information - Average loans for the three months ended September 30, 2025, were $14.52 billion, up from $13.57 billion in the same period of 2024, representing a growth of 7.0%[217] - Total deposits reached $15.83 billion at September 30, 2025, an increase of $1.50 billion, or 10.5%, from $14.33 billion at December 31, 2024[303] - Loans receivable reached $14.59 billion, an increase of $968.6 million or 7.1% from $13.62 billion at December 31, 2024[287] - Loans held for sale rose to $33.1 million, an increase of $18.6 million or 128.5% from $14.5 million at December 31, 2024[286] Credit Quality and Losses - Provision for credit losses increased to $8.71 million for the three months ended September 30, 2025, compared to $3.28 million in the same period of 2024, indicating a rise of 165.5%[215] - Nonperforming loans to loans receivable remained stable at 0.77% as of September 30, 2025, compared to 0.76% in the previous year[219] - The allowance for credit losses (ACL) was $152.5 million, compared to $150.5 million at December 31, 2024, with an ACL coverage ratio of 1.05%[294] - Net loan charge-offs for the three months ended September 30, 2025, were 0.14% of average loans, compared to 0.17% for the same period in 2024[297] - Net loan charge-offs for the nine months ended September 30, 2025, totaled $25.38 million, compared to $13.72 million for the same period in 2024, reflecting an increase of 85.5%[298] Operational Efficiency - The efficiency ratio improved to 68.20% for the three months ended September 30, 2025, down from 69.67% in the same period of 2024[215] - Noninterest expense for Q3 2025 was $96.9 million, an increase of 19.2% from $81.3 million in Q3 2024[224] - The efficiency ratio excluding notable items for Q3 2025 was 67.52%, compared to 68.44% in Q3 2024[224] Acquisition Impact - The Company completed the acquisition of Territorial Savings Bank on April 2, 2025, becoming the largest regional bank serving multicultural customers across the continental U.S. and Hawaii[230] - The bank's common stock issued as consideration in the Territorial acquisition amounted to $73.3 million during the nine months ended September 30, 2025[319] - Salaries and employee benefits rose by $10.8 million, or 24.3%, for Q3 2025, driven by an increase in headcount post-Territorial acquisition, with full-time equivalent employees at 1,452[261] - Occupancy expense increased by $2.2 million, or 31.9%, for Q3 2025, attributed to the addition of 29 branches from the Territorial acquisition[262] Interest Rates and Margins - The net interest margin for the three months ended September 30, 2025, was 2.89%, an increase from 2.55% in the same period of 2024[215] - The weighted average yield on loans decreased to 5.93% for Q3 2025, down 23 basis points from 6.16% in Q3 2024[237] - The weighted average cost of deposits for Q3 2025 was 2.88%, down 56 basis points from 3.44% in Q3 2024, influenced by lower market interest rates and the acquisition of lower-cost deposits[240] Tax and Regulatory Information - The company recorded an income tax provision of $5.6 million on pretax income of $36.5 million for Q3 2025, resulting in an effective tax rate of 15.40%[268] - Total tax credits and benefits from affordable housing partnerships were approximately $3.4 million for Q3 2025, compared to $2.8 million for the same period in 2024[271] - The bank's total capital ratio was 13.83% as of September 30, 2025, exceeding the required well-capitalized ratio[322] - The bank's leverage capital ratio was 10.85% as of September 30, 2025, indicating strong capital management[322]

Core Insights - The focus is on value investing with an emphasis on fundamental research across various sectors including chemicals, homebuilders, building materials, industrials, and metals & mining [1] - The investment strategy targets stocks that are undervalued and have potential catalysts within a timeframe of one quarter to two years [1] - The experience includes over three years of active investing, with roles as a buy-side analyst at a boutique research firm and family offices [1] Sector and Company Analysis - The sectors of interest are characterized by their potential for growth and value opportunities, particularly in the context of current market conditions [1] - The investment horizon indicates a strategic approach to capturing short to medium-term gains, aligning with market catalysts [1] - The emphasis on cheap stock availability suggests a focus on identifying undervalued companies that may be overlooked by the broader market [1]

Core Insights - Hope Bancorp, Inc. reported an earnings per share (EPS) of $0.23 for Q3 2025, which was below the estimated EPS of $0.25, indicating a negative earnings surprise [2][6] - The company's revenue for the quarter was $126.6 million, falling short of the estimated $138.9 million, but showing a year-over-year increase from $116.65 million [3][6] - Net income for Q3 2025 was $30.8 million, representing a 28% increase from the net income of $24.2 million in the same period in 2024 [4][6] Financial Performance - The EPS of $0.23 reflects an improvement from $0.21 per share reported in the same quarter last year [2] - Revenue growth demonstrates strong performance despite missing estimates, with a significant increase from the previous year's revenue [3] - The company's net income growth indicates a turnaround from previous financial challenges [4] Valuation Metrics - Hope Bancorp has a price-to-earnings (P/E) ratio of approximately 28.46 and a price-to-sales ratio of about 1.47, providing insight into its market valuation [5] - The enterprise value to sales ratio is around 0.98, while the enterprise value to operating cash flow ratio is approximately 6.17, which helps assess the company's potential for future growth [5]

Financial Data and Key Metrics Changes - Net income for Q3 2025 totaled $31 million, up 28% year over year from $24 million in the same quarter last year, and improved from a net loss of $28 million in Q2 2025 [5][6] - Net interest income reached $127 million for Q3 2025, an increase of 8% from the prior quarter and up 21% from Q3 2024 [10] - Net interest margin expanded by 20 basis points to 2.89% for Q3 2025, compared to 2.69% in the previous quarter [10] Business Line Data and Key Metrics Changes - Loan growth was observed across all major segments: commercial and industrial loans, commercial real estate loans, and residential mortgage loans [7] - Gross loans totaled $14.6 billion, up 1.2% quarter over quarter, equivalent to 5% annualized growth [8] - Non-interest income showed quarter-over-quarter growth in service fees, international banking fees, foreign exchange, and wire transfer fees [11] Market Data and Key Metrics Changes - Deposits totaled $15.8 billion as of September 30, 2025, reflecting a 1% decrease from $15.9 billion as of June 30, primarily due to a reduction in brokered deposits [8] - Non-interest-bearing deposits increased to $3.5 billion, up 1% quarter over quarter [8] Company Strategy and Development Direction - The company is focused on strengthening its deposit franchise and deepening primary banking relationships while optimizing deposit costs [8] - Continued investments in talent are aimed at driving sustainable growth and enhancing corporate and commercial banking capabilities [9] - The company anticipates high single-digit loan growth for 2025 and expects net interest income growth of approximately 10% [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position to drive profitable growth and create long-term value for shareholders [15] - The company is well-positioned to navigate an evolving macroeconomic environment with improved asset quality and capital ratios [7][8] Other Important Information - The board declared a quarterly common stock dividend of $0.14 per share, payable on November 21, 2025 [8] - The provision for credit losses was $9 million for Q3 2025, down from $15 million in Q2 2025, reflecting lower net charge-offs [13][14] Q&A Session Summary Question: What is the spot rate on deposits? - The spot rate for total deposits at the end of September was 2.82%, and for interest-bearing deposits, it was 3.62% [19] Question: Any updates on Territorial Bancorp's integration? - The company is focusing on stabilizing and expanding operations post-acquisition, with incremental cost savings being realized [22] Question: What was the purchase accounting impact this quarter? - The loan accretion for this quarter was $5 million [25][26] Question: How much in CDs are maturing in the fourth quarter? - There are $2.3 billion of CDs maturing at an average rate of 4.08% [32][34] Question: How is the company managing loan growth amid potential rate decreases? - The company has a strong loan pipeline going into Q4 and expects to maintain loan growth despite seasonal slowdowns [52]