Hope Bancorp (HOPE) AI Stock Analysis

• Market Cap: $1.37B
• Dividend Yield: 5.38%
• Average Volume (3M): 888.60K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 1.05
• Revenue Growth: -12.50%
• EPS Growth: N/A
• Country: US
• Employees: 1,227
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): -0.22
• Shares Outstanding: 128,056,080
• 10 Day Avg. Volume: 935,769
• 30 Day Avg. Volume: 888,603
• PEG Ratio: -0.59
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.42
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: 1.30
• 1Y Price Target: $13.00
• Price Target Upside: 24.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• 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 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 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

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

Hope Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.41
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VBTX	76 Outperform	$1.77B	15.46	7.25%	2.52%	-1.08%	32.40%
WABC	75 Outperform	$1.31B	10.45	14.60%	3.63%	-10.55%	-16.51%
TCBK	74 Outperform	$1.38B	12.39	9.17%	3.15%	1.15%	-0.39%
CCB	74 Outperform	$1.51B	29.67	12.78%	―	16.62%	18.72%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
TFIN	67 Neutral	$1.50B	144.22	1.52%	―	2.02%	-60.54%
HOPE	64 Neutral	$1.37B	30.07	1.92%	5.38%	-12.50%	―

Hope Bancorp Corporate Events

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.

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 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.