Hope Bancorp (HOPE) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: 4.97%
• Average Volume (3M): 896.67K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.88
• Revenue Growth: -7.96%
• EPS Growth: -52.79%
• Country: US
• Employees: 1,227
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.27
• Shares Outstanding: 128,203,740
• 10 Day Avg. Volume: 765,593
• 30 Day Avg. Volume: 896,668
• PEG Ratio: -0.54
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 9.32
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 2.72
• Enterprise Value/Ebitda: 15.29
• 1Y Price Target: $13.17
• Price Target Upside: 16.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.11
• Revenue Forecast (FY): $613.30M

• Rating: 66 Neutral
• Price Target: $13.00 ▲(15.45% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by solid underlying financial footing (stronger balance sheet and supportive cash flow) and a notably positive 2026 outlook from the earnings call. These positives are tempered by weakened profitability trends into 2025, a mixed near-term technical setup, and a less attractive valuation backdrop due to a relatively high P/E despite a strong dividend yield.

Positive Factors

Conservative Balance Sheet

Hope’s low recent leverage and rising equity provide durable capital resilience. A stronger capital base and conservative debt-to-equity give the bank room to absorb credit stress, maintain dividends and buybacks, and support lending growth without immediate capital raises over the medium term.

Solid Cash Generation

Steady free cash flow that tracks net income supports shareholder returns and operational flexibility. Consistent FCF reduces refinancing risk, funds strategic investments or buybacks, and underpins dividend sustainability even amid earnings volatility over the next several quarters.

Explicit Growth & NIM Tailwinds

Management’s medium-term targets and identified NIM tailwinds reflect a structural plan to rebuild revenue and margins. Clear loan growth targets, deposit repricing opportunities and planned NIM expansion give a durable path to higher net interest income and improved operating cash flow over 2–6 months.

Negative Factors

Weakening Profitability

Margins and returns have deteriorated sharply over the last two years, indicating lower earnings power despite balance-sheet strength. Sustained margin compression and falling ROE constrain the bank’s ability to convert asset growth into shareholder returns without material efficiency or revenue improvements.

High Operating Cost Base

Elevated noninterest expense and a 68% efficiency ratio show persistent operating leverage issues. Until OpEx is reduced or revenue meaningfully outpaces expense growth, profitability recovery will be limited and medium-term ROE and margin targets remain challenging to achieve.

Rate & M&A Sensitivities

Growth and margin plans rely on specific rate moves and deposit repricing plus contribution from an acquisition. That creates structural sensitivity: if rates or repricing differ or M&A benefits underdeliver, revenue and margin projections could miss, stressing medium-term targets.

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 primarily through interest income from loans and investment securities. The company offers various loan products such as commercial real estate loans, construction loans, and residential mortgages, which yield interest payments over time. Additionally, it earns fee income from services such as account maintenance, ATM transactions, and other banking services. The bank's diversification into wealth management and investment services also contributes to its revenue streams. Strategic partnerships with local businesses and community organizations enhance its market presence and customer base, further driving earnings.

Hope Bancorp Financial Statement Overview

Summary

Balance sheet is a clear strength (low recent leverage and rising equity), and cash flow is generally supportive of earnings with a strong 2025 rebound. Offsetting this, profitability trends have weakened materially into 2025 (lower margins and declining ROE), indicating reduced earnings power versus prior levels.

Income Statement

Revenue has been choppy (down in 2024 after strong 2023 growth, followed by a modest rebound in 2025). Profitability has weakened meaningfully: net margin fell from 12.2% (2023) to 10.0% (2024) and then to 6.0% (2025), with a similar step-down in operating profitability. The company remains profitable, but the trajectory shows clear earnings pressure versus the prior cycle highs.

Balance Sheet

Leverage appears conservative recently, with debt-to-equity at ~0.17 in 2025 (improved from ~0.18 in 2024 and far lower than 2023’s elevated level). Equity has grown from ~$2.12B (2023) to ~$2.28B (2025), supporting balance-sheet resilience. The main weakness is lower shareholder returns, with return on equity declining from 6.3% (2023) to 4.7% (2024) and 2.6% (2025), indicating reduced profitability on a stronger capital base.

Cash Flow

Cash generation is solid relative to earnings: free cash flow has closely tracked net income (about 0.92–1.00x from 2024–2025), and 2025 free cash flow rose strongly versus the prior year. However, cash-flow volatility is notable (large operating cash flow in 2023, weaker in 2024, then a rebound in 2025), and the provided operating cash flow coverage metric remains low across periods, suggesting limited cushion versus the referenced obligation despite positive cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	967.79M	1.00B	1.09B	767.51M	610.13M
Gross Profit	470.36M	456.64M	539.85M	619.97M	568.56M
EBITDA	83.67M	132.96M	177.89M	296.05M	275.27M
Net Income	58.52M	99.63M	133.67M	218.28M	204.57M
Balance Sheet
Total Assets	18.53B	17.05B	19.13B	19.16B	17.89B
Cash, Cash Equivalents and Short-Term Investments	2.63B	458.20M	4.07B	2.48B	3.00B
Total Debt	395.88M	392.64M	1.96B	1.25B	678.87M
Total Liabilities	16.25B	14.92B	17.01B	17.15B	15.80B
Stockholders Equity	2.28B	2.13B	2.12B	2.02B	2.09B
Cash Flow
Free Cash Flow	151.46M	106.91M	460.65M	476.42M	316.99M
Operating Cash Flow	164.55M	116.72M	473.78M	485.54M	324.21M
Investing Cash Flow	525.31M	466.52M	1.29B	-1.47B	-993.04M
Financing Cash Flow	-588.00M	-2.05B	-341.47M	1.18B	634.52M

Hope Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOPE, the sentiment is Neutral. The current price of 11.26 is below the 20-day moving average (MA) of 12.05, below the 50-day MA of 11.64, and above the 200-day MA of 10.69, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.43 is Neutral, neither overbought nor oversold. The STOCH value of 30.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HOPE.

Hope Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBK	81 Outperform	$1.55B	12.91	9.20%	2.83%	0.93%	5.65%
DCOM	70 Outperform	$1.42B	13.71	4.23%	3.14%	-1.79%	-23.87%
NBHC	68 Neutral	$1.80B	14.01	9.06%	3.07%	-2.46%	-1.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HOPE	66 Neutral	$1.44B	23.18	2.65%	4.97%	-7.96%	-52.79%
QCRH	65 Neutral	$1.44B	11.54	11.80%	0.28%	-2.42%	3.83%
TFIN	50 Neutral	$1.33B	60.40	1.11%	―	2.04%	-64.17%

Hope Bancorp Corporate Events

Hope Bancorp Reports Strong Q4 Earnings and Dividend

On January 27, 2026, Hope Bancorp reported unaudited results for the fourth quarter and full year ended December 31, 2025, and announced a quarterly cash dividend of $0.14 per common share payable in February 2026 to stockholders of record as of early February. Fourth-quarter 2025 net income rose to $34.5 million, or $0.27 per diluted share, up 12% from the prior quarter and 42% from a year earlier, driven by higher net interest income, stronger fee-based revenues, and lower credit loss provisions, while full-year 2025 net income reached $61.6 million, or $0.49 per diluted share, and $113.3 million, or $0.89 per diluted share, excluding notable items, representing a 10% year-over-year increase on that adjusted basis. The bank modestly expanded its balance sheet to $18.53 billion in assets and $14.79 billion in gross loans by year-end 2025, supported by organic residential mortgage growth and the Territorial Bancorp acquisition, while improving net interest margin to 2.90%, lowering its cost of deposits, reducing reliance on brokered funds, and benefiting from tax credits that reduced its effective tax rate, collectively strengthening profitability metrics and underscoring management’s view that the franchise is better positioned for continued earnings growth.

The most recent analyst rating on (HOPE) stock is a Buy with a $13.50 price target. To see the full list of analyst forecasts on Hope Bancorp stock, see the HOPE Stock Forecast page.

Hope Bancorp updates governance amid director retirement

On January 13, 2026, long-serving director Scott Yoon-Suk Whang notified Hope Bancorp’s board that he will retire and not stand for re-election at the company’s 2026 annual meeting, ending a board tenure that began in 2007 and included stints as board chairman and lead independent director as he helped guide the bank’s evolution from a community institution into a regional franchise. In conjunction with his planned departure and a broader periodic governance review, the board moved on January 15, 2026, to amend and restate its bylaws and corporate governance guidelines, adopting a majority-vote standard in uncontested director elections, tightening procedures for shareholder nominations and proposals, reinforcing the board’s control over filling vacancies and bylaw changes, enhancing indemnification provisions, expanding the responsibilities of the lead independent director and formalizing CEO succession planning, with the board to be reduced to nine members after Whang’s retirement, signaling an effort to modernize and strengthen oversight and shareholder governance practices.

The most recent analyst rating on (HOPE) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Hope Bancorp stock, see the HOPE Stock Forecast page.