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Hope Bancorp Inc (HOPE)
NASDAQ:HOPE
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Hope Bancorp (HOPE) AI Stock Analysis

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HOPE

Hope Bancorp

(NASDAQ:HOPE)

Rating:64Neutral
Price Target:
$11.50
▲(10.47%Upside)
Hope Bancorp's overall stock score is driven by stable financial performance and strategic growth initiatives. The company's high valuation and recent net loss due to one-time items are key concerns. Technical analysis presents mixed signals, and while the dividend yield is attractive, it does not fully offset the high P/E ratio.
Positive Factors
Deposit Growth
Non-interest bearing deposits increased sequentially, driving a positive mix shift.
Expense Management
Expenses are guided to decline by more than 7% compared to previously expected more than 5%, driven by benefits from reorganization and process improvements.
Loan Growth
Loan growth is expected to be driven by growth in residential mortgage, improving loan pipelines in CRE and C&I, and growth in SBA loan production.
Negative Factors
Credit Quality
Credit quality weakened as non-performing assets increased significantly.
Financial Performance
Core PPNR of $37 million was below the forecast of $46 million and consensus of $41 million.
Loan Growth
Loan growth was weaker than expected driven by elevated payoffs and paydowns in the C&I portfolio.

Hope Bancorp (HOPE) vs. SPDR S&P 500 ETF (SPY)

Hope Bancorp Business Overview & Revenue Model

Company DescriptionHope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides banking services for small and medium-sized businesses, and individuals in the United States. The company accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. Its loan products include commercial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, and other business related financing needs; real estate loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, auto, credit card, and personal loans. The company also offers trade finance services, including the issuance and negotiation of letters of credit, as well as handles documentary collections; warehouse lines of credit to mortgage loan originators; and commercial equipment lease financing. In addition, it provides cash management services, such as remote deposit capture, lock box, and ACH origination services; investment and wealth management services; mobile banking services; debit card services; foreign exchanges services, safe deposit boxes, and other customary bank services; internet banking services; and automated teller machine services. As of December 31, 2021, the company operated 47 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, and Alabama; SBA loan production offices in Atlanta, Houston, Dallas, Denver, Portland, Seattle, Fremont, and Southern California; and a representative office in Seoul, Korea. Hope Bancorp, Inc. was incorporated in 2000 and is headquartered in Los Angeles, California.
How the Company Makes MoneyHope Bancorp generates revenue through a variety of financial products and services. Its primary revenue streams include interest income from loans and leases, which is the largest component of its income. This includes commercial real estate loans, commercial and industrial loans, and residential mortgage loans. The company also earns non-interest income from service charges on deposit accounts, fees from loan origination, and gains on the sale of loans. Additionally, Hope Bancorp benefits from its deposit accounts, such as savings, checking, and time deposits, which provide a stable source of low-cost funds. The bank's strategic focus on community banking and its strong ties with the Korean-American community contribute significantly to its earnings. It also occasionally engages in strategic partnerships and acquisitions to expand its market presence and enhance its product offerings.

Hope Bancorp Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: -8.36%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
The earnings call for Hope Bancorp reflected a mix of strong strategic moves and financial improvements, such as the successful acquisition of Territorial Bancorp and growth in net interest income. However, these positives were offset by a reported net loss due to significant one-time costs and an increase in non-performing assets. The company is actively addressing challenges, particularly in asset quality and cost management.
Q2-2025 Updates
Positive Updates
Completion of Territorial Bancorp Acquisition
Hope Bancorp completed the acquisition of Territorial Bancorp, entering the strategically important market of Hawaii, which is expected to provide new growth opportunities.
Increase in Net Interest Income
Net interest income for the second quarter increased by 17% from the prior quarter, reflecting the positive impact of the Territorial acquisition and organic loan growth.
Improvement in Loan Production
Organic loan production increased 57% from the first quarter levels, with a well-diversified mix of originations across all areas of lending.
Deposit Growth and Cost Improvement
Total deposits grew to $15.9 billion, an increase of 10% from the prior quarter, driven by the addition of low-cost deposits from Territorial, decreasing the average cost of interest-bearing deposits by 37 basis points quarter-over-quarter.
Reduction in Brokered Deposits
Brokered deposits exposure decreased by $183 million or 19% quarter-over-quarter, reducing the broker deposits ratio to 5% of total deposits.
Negative Updates
Net Loss Due to One-Time Items
A net loss of $27.9 million was reported for the second quarter due to one-time losses from selling lower-yielding legacy securities, merger-related items, and a change in California's state tax apportionment law.
Increase in Non-Performing Assets
Non-performing assets increased to $113 million, representing 61 basis points of total assets, up from 49 basis points in the previous quarter, largely due to one commercial real estate loan.
Higher Net Charge-Offs
Net charge-offs totaled $12 million, a rise from $8 million in the previous quarter, though still described as manageable.
Provision for Credit Losses
The provision for credit losses was $15 million, including merger-related provisions, indicating ongoing concerns in certain areas.
Company Guidance
During the Hope Bancorp 2025 Second Quarter Earnings Conference Call, the company provided several key metrics and guidance updates. Hope Bancorp reported net income, excluding notable items, of $24.5 million for the second quarter, a 7% increase from $22.9 million in the first quarter. Earnings per diluted share, excluding notable items, remained at $0.19, despite the issuance of 7 million shares related to the acquisition of Territorial Bancorp. The net loss for the quarter was $27.9 million, affected by a one-time loss from selling lower-yielding legacy securities, merger-related expenses, and an impact from a change in California's state tax apportionment law. Pretax pre-provision net revenue rose to $41.2 million, up 17% from the previous quarter. The company emphasized its strong capital ratios, with all remaining well above requirements for well-capitalized financial institutions, and noted a quarterly common stock dividend of $0.14 per share. Total deposits grew to $15.9 billion, a 10% increase from the prior quarter, while loans receivable reached $14.4 billion, up 8%. Net interest income rose by 17% to $118 million, and the net interest margin increased by 15 basis points to 2.69%. The company expects high single-digit loan and net interest income growth for 2025, with fee income growth adjusted to the high 20s percentage range and noninterest expenses projected to grow in the low double-digits. The effective tax rate is expected to be approximately 14% for the remainder of the year.

Hope Bancorp Financial Statement Overview

Summary
Hope Bancorp demonstrates stable financial performance with solid profitability margins and low leverage. However, the declining trend in revenue growth remains a concern. The company's strong cash flow position supports operational needs and growth investments, though improvements in revenue growth and return on equity are needed.
Income Statement
72
Positive
Hope Bancorp's income statement reveals a mixed performance. The Gross Profit Margin for TTM is approximately 46.39%, indicating a solid ability to generate profit from its core activities. The Net Profit Margin stands at 9.83% for TTM, reflecting a moderate profitability level. However, the Revenue Growth Rate shows a declining trend over the annual periods, with a notable decrease from 2023 to 2024. The EBIT and EBITDA margins for TTM are both at 12.94%, indicating stable operational efficiency.
Balance Sheet
68
Positive
The balance sheet highlights a stable financial position with a Debt-to-Equity Ratio of 0.12 for TTM, which suggests low financial leverage and risk. The Return on Equity (ROE) is 4.39% for TTM, which is moderate but shows room for improvement. The Equity Ratio is 12.66% for TTM, indicating a relatively lower level of equity financing compared to total assets.
Cash Flow
75
Positive
Cash flow analysis shows resilience with a slight Free Cash Flow Growth Rate of -3.27% from 2023 to 2024, indicating a small decline in free cash generation. The Operating Cash Flow to Net Income Ratio stands at 1.20 for TTM, suggesting strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 1.09 for TTM, highlighting sufficient cash flow to cover net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.00B1.09B767.51M610.13M648.56M
Gross Profit456.64M539.85M619.97M568.56M419.11M
EBITDA132.96M177.89M296.05M275.27M142.29M
Net Income99.63M133.67M218.28M204.57M111.52M
Balance Sheet
Total Assets17.05B19.13B19.16B17.89B17.11B
Cash, Cash Equivalents and Short-Term Investments458.20M4.07B2.48B3.00B2.66B
Total Debt392.64M1.96B1.25B678.87M610.77M
Total Liabilities14.92B17.01B17.15B15.80B15.05B
Stockholders Equity2.13B2.12B2.02B2.09B2.05B
Cash Flow
Free Cash Flow106.91M460.65M476.42M316.99M160.94M
Operating Cash Flow116.72M473.78M485.54M324.21M165.92M
Investing Cash Flow466.52M1.29B-1.47B-993.04M-1.83B
Financing Cash Flow-2.05B-341.47M1.18B634.52M1.32B

Hope Bancorp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.41
Price Trends
50DMA
10.65
Negative
100DMA
10.37
Positive
200DMA
11.35
Negative
Market Momentum
MACD
0.07
Positive
RSI
38.17
Neutral
STOCH
13.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOPE, the sentiment is Negative. The current price of 10.41 is below the 20-day moving average (MA) of 11.22, below the 50-day MA of 10.65, and below the 200-day MA of 11.35, indicating a bearish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 38.17 is Neutral, neither overbought nor oversold. The STOCH value of 13.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HOPE.

Hope Bancorp Risk Analysis

Hope Bancorp disclosed 34 risk factors in its most recent earnings report. Hope Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Hope Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$1.77B15.467.25%2.52%-1.08%32.40%
75
Outperform
$1.31B10.4514.60%3.63%-10.55%-16.51%
74
Outperform
$1.38B12.399.17%3.15%1.15%-0.39%
74
Outperform
$1.51B29.6712.78%16.62%18.72%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
67
Neutral
$1.50B144.221.52%2.02%-60.54%
64
Neutral
$1.37B30.071.92%5.38%-12.50%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HOPE
Hope Bancorp
10.41
-2.38
-18.61%
TCBK
Trico Bancshares
41.97
-4.54
-9.76%
WABC
Westamerica Bancorporation
48.97
-4.69
-8.74%
VBTX
Veritex
32.10
8.12
33.86%
TFIN
Triumph Financial
63.08
-28.49
-31.11%
CCB
Coastal Financial
100.40
48.27
92.60%

Hope Bancorp Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Hope Bancorp Reports Q2 2025 Net Loss Amid Repositioning
Negative
Jul 22, 2025

On July 22, 2025, Hope Bancorp reported a net loss of $27.9 million for the second quarter of 2025, primarily due to securities portfolio repositioning, the acquisition of Territorial Bancorp, and changes in California’s tax law. Despite the loss, the company experienced a 17% increase in net interest income and a 7% growth in net income excluding notable items, driven by strong loan growth and reduced deposit costs. The acquisition of Territorial Bancorp expanded Hope Bancorp’s market into Hawaii, contributing to a diversified loan portfolio and improved cost of deposits. The strategic repositioning of investment securities is expected to enhance future earnings, positioning the company for growth opportunities.

The most recent analyst rating on (HOPE) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Hope Bancorp stock, see the HOPE Stock Forecast page.

Business Operations and Strategy
Hope Bancorp Completes Strategic Investment Repositioning
Neutral
Jun 17, 2025

On June 13, 2025, Hope Bancorp, Inc. completed a strategic repositioning of its investment securities portfolio, selling $422 million in lower-yielding securities to purchase higher-yielding options. This move is expected to increase the company’s annual interest income by $12 million, despite an estimated $40 million pre-tax net loss from the sale, with an earn-back period of three years. The repositioning will not significantly impact stockholders’ equity or regulatory capital ratios.

The most recent analyst rating on (HOPE) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Hope Bancorp stock, see the HOPE Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Hope Bancorp Holds Successful Annual Stockholders Meeting
Positive
May 22, 2025

On May 22, 2025, Hope Bancorp held its annual stockholders meeting virtually, where key proposals were voted on, including the election of directors, the ratification of Crowe LLP as the independent auditor for 2025, and a nonbinding advisory vote on executive compensation. The meeting saw a high participation rate with 89.70% of shares represented, resulting in the election of all director nominees, approval of Crowe LLP’s appointment with 99.29% support, and the executive compensation plan receiving 94.72% approval, reflecting strong shareholder backing for the company’s governance and operational strategies.

The most recent analyst rating on (HOPE) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Hope Bancorp stock, see the HOPE Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025