Hope Bancorp(US:HOPE)2026-01-27 12:35Financial Performance - For Q4 2025, net income was $34.5 million, a 12% increase quarter-over-quarter and a 42% increase year-over-year[1][2] - For the full year 2025, net income totaled $61.6 million, or $0.49 per diluted common share, with notable items adjusted net income at $113.3 million, up 10% from 2024[3] - For the three months ended December 31, 2025, net income increased by 12% to $34,466,000 compared to $30,776,000 for the previous quarter[32] - The diluted earnings per common share for the same period rose to $0.27, up from $0.24 in the prior quarter, reflecting a 12% increase[34] - Net income excluding notable items for Q4 2025 was $34,477 thousand, compared to $31,526 thousand in Q3 2025 and $24,039 thousand in Q4 2024, representing a 43.4% increase year-over-year[56] Income and Revenue - Net interest income for Q4 2025 was $127.4 million, a 1% increase from Q3 2025, with a net interest margin of 2.90%, up 40 basis points year-over-year[6][7] - Noninterest income for Q4 2025 was $18.4 million, a 19% increase from Q3 2025, driven by growth in customer-level swap fees and service fees[8] - Total revenue for the twelve months ended December 31, 2025, was $498,702 thousand, a 5.0% increase from $474,928 thousand for the same period in 2024[55] - Total noninterest income increased by 19% to $18,351,000 compared to $15,385,000 in the previous quarter[32] - Noninterest income for Q4 2025 was $18,351 thousand, up from $15,385 thousand in Q3 2025 and $15,881 thousand in Q4 2024, marking a 15.5% increase year-over-year[56] Assets and Loans - Total assets as of December 31, 2025, were $18.53 billion, up from $17.05 billion year-over-year[11] - Gross loans totaled $14.79 billion, an 8% increase year-over-year, with significant growth in residential mortgage loans[12] - Total assets reached $18.53 billion, reflecting a 9% increase from $17.05 billion at December 31, 2024[30] - Gross loans, including loans held for sale, increased by 1% to $14.79 billion compared to $14.62 billion at September 30, 2025[30] - Loans held for sale surged by 162% to $86,905 thousand compared to the previous quarter[40] Deposits and Equity - Total deposits were $15.60 billion, a 9% increase year-over-year, despite a 1% decrease quarter-over-quarter[13] - Total deposits amounted to $15,603,143 thousand, an increase of 9% year-over-year[40] - Total stockholders' equity increased by 1% to $2.28 billion compared to $2.26 billion at September 30, 2025[21] - Stockholders' equity rose to $2,283,268 thousand, a 5% increase from the previous year[42] Credit Quality - Criticized loans decreased by $21.8 million, or 6%, quarter-over-quarter, and by $98.9 million, or 22%, year-over-year[15] - The allowance for credit losses was $156.7 million, with a coverage ratio of 1.07% of loans receivable as of December 31, 2025[18][19] - The provision for credit losses for Q4 2025 was $7.2 million, down from $8.7 million in Q3 2025, reflecting lower net charge-offs[19] - Total nonperforming assets increased to $136,055 million as of December 31, 2025, compared to $112,159 million in the previous quarter, reflecting a rise of 21.3%[46] - The ratio of nonperforming assets to total assets was 0.73% as of December 31, 2025, up from 0.61% in the previous quarter[46] Capital Ratios - As of December 31, 2025, the Common Equity Tier 1 Capital Ratio was 12.27%, exceeding the minimum guideline of 6.50% for "well-capitalized" institutions[21] - The TCE ratio improved to 9.76% at December 31, 2025, up 12 basis points from 9.64% at September 30, 2025[21] - The common equity tier 1 ratio decreased to 12.27%, down from 13.06% a year ago[42] - The leverage ratio stood at 11.05%, down from 11.83% a year ago[42] Operational Efficiency - The efficiency ratio for the quarter was 68.22%, slightly improved from 68.24% in the prior quarter[34] - The efficiency ratio excluding notable items for Q4 2025 was 68.16%, slightly higher than 67.56% in Q3 2025 and 65.81% in Q4 2024[56] Future Outlook - The investor conference call to discuss the fourth quarter and full year results is scheduled for January 27, 2026[23]