Hope Bancorp (HOPE) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: 5.05%
• Average Volume (3M): 924.61K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 1.00
• Revenue Growth: -12.55%
• EPS Growth: -59.97%
• Country: US
• Employees: 1,227
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Regional
• EPS (TTM): -0.22
• Shares Outstanding: 128,179,760
• 10 Day Avg. Volume: 662,720
• 30 Day Avg. Volume: 924,608
• PEG Ratio: -0.59
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 13.86
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 10.58
• 1Y Price Target: $12.50
• Price Target Upside: 11.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 65 Neutral
• Price Target: $11.50 ▲(2.13% Upside)

Hope Bancorp's overall score reflects stable financial performance and strategic growth initiatives. While the stock's valuation appears high, the strong dividend yield and positive earnings call guidance provide support. Technical indicators suggest a neutral outlook, and recent corporate events highlight strategic repositioning efforts.

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 primarily through interest income earned from loans and leases, which constitute a significant portion of its earnings. The bank offers various loan products, including commercial real estate loans, residential mortgages, and small business loans, each of which yields interest payments over the life of the loan. Additionally, the company earns non-interest income from service charges on deposit accounts, fees for treasury management services, and other banking-related fees. A critical factor contributing to its earnings is the bank's ability to maintain a healthy net interest margin by effectively managing its interest-earning assets and interest-bearing liabilities. Furthermore, partnerships with local businesses and community organizations help Hope Bancorp expand its customer base and enhance its revenue streams.

Hope Bancorp Financial Statement Overview

Summary

Hope Bancorp shows stable financial performance with solid profitability margins and low leverage. However, the declining trend in revenue growth is a concern. The company maintains strong cash flows, supporting operational needs and potential growth investments.

Income Statement

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

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

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.

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: 11.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 11.26 is above the 20-day moving average (MA) of 10.60, above the 50-day MA of 10.69, and above the 200-day MA of 10.82, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 80.20 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
TCBK	76 Outperform	$1.50B	13.41	9.17%	2.93%	1.15%	-0.39%
VBTX	76 Outperform	$1.90B	16.14	7.25%	2.42%	-1.28%	32.40%
WABC	75 Outperform	$1.27B	10.40	14.60%	3.63%	-10.55%	-16.51%
CCB	69 Neutral	$1.75B	35.62	12.23%	―	9.22%	18.60%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
TFIN	68 Neutral	$1.52B	146.64	1.52%	―	2.02%	-60.54%
HOPE	65 Neutral	$1.44B	31.20	1.92%	5.05%	-12.55%	-59.97%

Hope Bancorp Corporate Events

Hope Bancorp Announces Steven S. Koh’s Retirement

Hope Bancorp announced the retirement of Steven S. Koh, Honorary Chairman and board member, effective December 31, 2025. Koh, a pivotal figure in the creation of the first Korean American regional bank in the U.S., has served the company for 40 years and plans to focus on philanthropy post-retirement. His departure is not due to any disagreements with the company, and the board will be adjusted to 10 directors following his retirement.

Hope Bancorp Reports Q2 2025 Net Loss Amid Repositioning

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.

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.