Hope Bancorp(US:HOPE)2026-01-27 18:30Financial Data and Key Metrics Changes - The company reported a net income of $34 million for Q4 2025, representing a 42% increase quarter-over-quarter, driven by growth in net interest income, customer fee income, lower provision for credit losses, and a lower tax expense, partially offset by higher operating expenses [5] - Net interest income totaled $127 million for Q4 2025, an increase of 1% from the prior quarter and up 25% from Q4 2024 [10] - Non-interest expense totaled $99 million in Q4 2025, up from $97 million in Q3 2025, primarily due to compensation-related costs [11] Business Line Data and Key Metrics Changes - Gross loans reached $14.8 billion, up 1% quarter-over-quarter and up 8% year-over-year, largely due to the Territorial acquisition and organic residential mortgage growth [7] - Deposits totaled $15.6 billion, up 9% year-over-year, primarily due to the Territorial acquisition, but down 1% from the previous quarter [8] Market Data and Key Metrics Changes - The criticized loan ratio improved to 2.39% of loans at December 31, 2025, down from 2.56% at September 30, 2025, and down from 3.30% at December 31, 2024 [13] - The allowance for credit losses totaled $157 million at December 31, 2025, up from $152.5 million at September 30, 2025 [14] Company Strategy and Development Direction - The company aims to build a durable deposit base by expanding primary customer relationships and improving funding efficiency through thoughtful mix management and pricing discipline [8] - The company is focused on strengthening its organization and expanding its banking franchise while deepening client engagements [9] Management's Comments on Operating Environment and Future Outlook - Management expects to see year-over-year revenue growth for 2026 driven by strong fee income growth and anticipates a pre-provision net revenue growth of 25%-30% [17] - The company is targeting a return on average assets of approximately 1.2% and loan growth in the high single-digit percentage range [18] Other Important Information - The board of directors declared a quarterly common stock dividend of $0.14 per share, payable on or around February 20, 2026 [6] - The company reinstated its prior share purchase authorization, which still has $35 million available [7] Q&A Session Summary Question: Can I quickly just get the PAA accretion number? - The company does not disclose that number separately [21] Question: Can I get your thoughts on deposit costs from here in terms of pricing? - The spot rate on total deposits was 2.68% as of December 31, 2025, and the company expects continued downward repricing of the CD portfolio [22][24] Question: What does the CD repricing look like going forward in 2026? - The company is looking at a repricing of $6.3 billion in 2026, with new CDs coming in at around 3.75-3.80% [29] Question: Can you provide an update on the operations in Hawaii? - The company did not experience any meaningful deposit fluctuations during the transition period in 2025 and is looking forward to generating growth from this strategy [37]