Hope Bancorp (HOPE) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: 4.9%
• Average Volume (3M): 787.40K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.03
• Revenue Growth: -11.94%
• EPS Growth: -21.67%
• Country: US
• Employees: 1,227
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.17
• Shares Outstanding: 128,056,080
• 10 Day Avg. Volume: 1,056,058
• 30 Day Avg. Volume: 787,401
• PEG Ratio: -2.16
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.58
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.83
• Enterprise Value/Ebitda: 1.52
• 1Y Price Target: $13.00
• Price Target Upside: 13.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: $12.50 ▲(9.36%Upside)

Hope Bancorp's overall stock score reflects stable financial performance and positive corporate events, offset by technical indicators suggesting potential overbought conditions. Valuation is fair with a strong dividend yield, while the earnings call highlights both strategic successes and ongoing challenges.

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 Business Overview & Revenue Model

Company Description

Hope 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 Money

Hope 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 Financial Statement Overview

Summary

Hope Bancorp shows mixed financial performance. The income statement indicates inconsistent profitability with fluctuating net profit margins. The balance sheet is strong with low leverage, but return on equity has declined. Cash flow management shows areas for improvement, with decreased operating cash flow and negative free cash flow growth.

Income Statement

Hope Bancorp shows a mixed performance in its income statement. The gross profit margin remains stable as gross profit equals total revenue, typical for banking. The net profit margin has fluctuated, with a decline in 2024 compared to 2023, indicating reduced profitability. Revenue growth is inconsistent, with a notable increase in 2024 after a decrease in 2023. The EBIT margin decreased significantly in 2024, suggesting higher operating expenses relative to revenue. These factors reflect some financial strength but also highlight areas needing improvement, particularly in maintaining consistent profitability.

Balance Sheet

The balance sheet of Hope Bancorp is relatively stable. The debt-to-equity ratio was favorable in 2024 with no total debt, indicating strong financial health and reduced leverage risk. The equity ratio indicates a solid capital foundation, though it slightly decreased over the years. Return on equity shows variability, with a drop in 2024, pointing to challenges in generating returns on shareholder investments. Overall, the balance sheet reflects sound financial management with potential for improving shareholder returns.

Cash Flow

The cash flow statement shows some areas of concern for Hope Bancorp. Operating cash flow decreased substantially in 2024 compared to 2023, impacting the operating cash flow to net income ratio. Free cash flow growth was negative in 2024, indicating potential challenges in cash generation. However, the company managed financing activities well, reducing financing cash outflows. Improvements are needed in sustaining and growing free cash flow to ensure liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	964.95M	1.00B	1.09B	767.51M	610.13M	648.56M
Gross Profit	447.61M	456.64M	539.85M	619.97M	568.56M	419.11M
EBITDA	124.91M	132.96M	177.89M	296.05M	275.27M	142.29M
Net Income	94.86M	99.63M	133.67M	218.28M	204.57M	111.52M
Balance Sheet
Total Assets	17.07B	17.05B	19.13B	19.16B	17.89B	17.11B
Cash, Cash Equivalents and Short-Term Investments	737.43M	458.20M	4.07B	2.48B	3.00B	2.66B
Total Debt	250.84M	392.64M	1.96B	1.25B	678.87M	610.77M
Total Liabilities	14.91B	14.92B	17.01B	17.15B	15.80B	15.05B
Stockholders Equity	2.16B	2.13B	2.12B	2.02B	2.09B	2.05B
Cash Flow
Free Cash Flow	103.41M	106.91M	460.65M	476.42M	316.99M	160.94M
Operating Cash Flow	113.77M	116.72M	473.78M	485.54M	324.21M	165.92M
Investing Cash Flow	465.19M	466.52M	1.29B	-1.47B	-993.04M	-1.83B
Financing Cash Flow	-1.03B	-2.05B	-341.47M	1.18B	634.52M	1.32B

Hope Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOPE, the sentiment is Positive. The current price of 11.43 is above the 20-day moving average (MA) of 10.45, above the 50-day MA of 10.28, and above the 200-day MA of 11.42, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 71.52 is Negative, neither overbought nor oversold. The STOCH value of 88.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOPE.

Hope Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WABC	76 Outperform	$1.33B	10.17	15.54%	3.62%	-7.38%	-15.58%
VBTX	76 Outperform	$1.49B	13.43	7.07%	3.21%	1.41%	19.00%
CCB	74 Outperform	$1.54B	30.33	12.78%	―	16.62%	18.72%
HOPE	70 Outperform	$1.43B	14.25	4.44%	4.90%	-11.94%	-21.67%
TCBK	70 Outperform	$1.39B	12.40	9.38%	3.11%	3.01%	4.55%
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%
TFIN	65 Neutral	$1.49B	171.04	1.35%	―	2.37%	-72.01%

Hope Bancorp Corporate Events

Hope Bancorp Completes Strategic Investment Repositioning

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.

Hope Bancorp Holds Successful Annual Stockholders Meeting

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.

Hope Bancorp Reports Q1 Results and Dividend Announcement

On April 22, 2025, Hope Bancorp announced its financial results for the first quarter ending March 31, 2025, reporting a net income of $21.1 million. The company also declared a quarterly cash dividend of $0.14 per common share, payable on May 16, 2025. Additionally, Hope Bancorp completed the acquisition of Territorial Bancorp Inc., strengthening its position as the largest regional bank serving multicultural communities. The merger added approximately $1.7 billion in core deposits and $1.0 billion in residential mortgage loans to its balance sheet, enhancing its financial stability and growth potential.