Core Insights - Hope Bancorp reported strong earnings growth in Q4 2025, with net income reaching $34 million, a 42% increase from the prior quarter, driven by higher net interest income and improved credit metrics [4][5][8] Financial Performance - Gross loans totaled $14.8 billion, up 1% from the previous quarter and 8% year-over-year, influenced by the Territorial acquisition and organic growth in residential mortgages [1][7] - Net interest income was $127 million, reflecting a 1% increase from Q3 and a 25% increase year-over-year, with a tax-equivalent net interest margin of 2.90% [11][7] - Deposits reached $15.6 billion, up 9% year-over-year, although down 1% from the previous quarter due to typical seasonal movements [9][7] Capital Returns - The board declared a quarterly common stock dividend of $0.14 per share, payable on or around February 20, 2026, and reinstated a $35 million share repurchase authorization [2][8] Credit Metrics - Criticized loans decreased to $351 million, representing 2.39% of total loans, down from 2.56% in the prior quarter and 3.30% year-over-year [6][17] - Net charge-offs were $3.6 million, or an annualized 10 basis points of average loans, down from $5.1 million in the previous quarter [18] Strategic Initiatives - The company is focusing on reducing reliance on brokered deposits, which fell by 15% year-over-year, and improving funding efficiency through better deposit mix management [3][10] - Management expects pre-provision net revenue growth of 25-30% in 2026, with a target return on average assets of approximately 1.2% and an efficiency ratio in the mid-50% range [6][21][22] Outlook - The company anticipates benefits from Federal Reserve rate cuts in 2026, with expectations for upward repricing of commercial real estate loans and downward repricing of time deposits [12][20] - Management reiterated a focus on hiring and strategic investments to support growth in 2026, building on momentum from the second half of 2025 [5][20]

Core Insights - The company successfully completed the systems conversion and integration related to its Bremer Bank partnership, marking it as one of its smoothest integrations ever [1] - Fourth-quarter GAAP earnings per share (EPS) were reported at $0.55, with adjusted EPS at $0.62, reflecting a 5% increase from the prior quarter and a 27% increase year over year [2] - The company achieved record profitability metrics in 2025, including adjusted EPS, net income, and efficiency ratio, driven by core deposit growth and disciplined credit management [3][4] Financial Performance - Adjusted EPS for Q4 was $0.62, up 27% year over year, with an adjusted return on average tangible common equity (ROTCE) of nearly 20% and an adjusted return on assets (ROA) of 1.37% [3][7] - The company reported total loan growth of 6.4% annualized from the prior quarter, with loan production up 25% [8] - Deposits increased by 0.6% annualized in the quarter, with non-interest-bearing deposits growing to 26% of core deposits [9] Outlook for 2026 - The company anticipates full-year loan growth of 4%–6% and a stable-to-improving net interest margin supported by repricing and securities cash flows [5][17] - Management plans to be more active in share buybacks while maintaining strong capital levels, with a CET1 ratio above 11% [6][16] - The company expects net interest income to increase, supported by fixed-asset repricing and continued growth [17] Cost Management and Efficiency - Adjusted non-interest expenses were reported at $365 million in Q4, with a record-low adjusted efficiency ratio of 46% [13] - The company realized about 28% of anticipated cost savings from the Bremer integration in Q4, with full realization expected in Q1 2026 [13] Credit Quality - Credit metrics improved, with net charge-offs at 27 basis points and criticized and classified loans declining by $278 million [15] - The allowance for credit losses was reported at 124 basis points of total loans, down two basis points from the prior quarter [15]

Core Insights - Discover reported stable consumer financial habits and improving credit metrics in Q1, including lower 30+ day delinquency rates [1][4] - The acquisition by Capital One is expected to enhance competition in payment networks and expand product offerings [2][3] Financial Performance - Discover's first-quarter earnings showed improving credit metrics, increased debit spending, and higher deposits ahead of the Capital One acquisition [2] - PULSE network volumes increased by 3% to $81.3 billion, driven by growth in debit spending [3] - Card sales were down 2% year over year, with sales volume at $49.3 billion [6][7] - Ending loan balances in the card business were $99 billion, down from $102.8 billion in the previous quarter [6] Consumer Behavior - Discover's customer behavior was stable, evidenced by spending, payment, and credit trends [4] - The 30+ day delinquency rate decreased by 0.18% compared to the previous quarter [4] Provision and Charge-offs - Discover's provision expense declined by $253 million, indicating a stable credit performance [5] - Personal loan balances remained flat at $10.1 billion, with net charge-offs at 4.21% [7] Deposits and Funding - Average consumer deposits increased by 6% year over year and 1% sequentially, with direct-to-consumer deposits growing by $2 billion [8] - Direct-to-consumer deposits now account for 74% of total funding [8] Segment Performance - The Diners Club segment showed robust growth, with volumes at $12 billion, up 18% year over year, driven by expansion in India and Israel [8]