Hope Bancorp (HOPE) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $29.5 million ($0.23 per diluted share), up 40% year-over-year, driven by higher net interest and noninterest income, organic growth, and the Territorial Bancorp acquisition.

• Pre-provision net revenue increased 43% year-over-year to $46.6 million and was up 1% sequentially.

• Announced the accretive, all-cash acquisition of SMBC MANUBANK's Commercial Banking Unit, expected to close in the second half of 2026.

• The Territorial Savings acquisition in April 2025 expanded the branch network and diversified the loan portfolio.

Financial highlights

• Net interest income was $124.1 million, up 23% year-over-year, with net interest margin at 2.90%, up 36 bps year-over-year and flat sequentially.

• Noninterest income was $17 million, up 8% year-over-year, but down sequentially.

• Noninterest expense was $94.5 million, up 13% year-over-year but down 5% sequentially; efficiency ratio improved to 66.98%.

• Provision for credit losses was $8.7 million, up from $4.8 million a year ago.

• Book value per share was $17.86; tangible common equity per share was $13.73.

Outlook and guidance

• Expect loan growth of over 20% for 2026, including the impact of the pending MANUBANK acquisition.

• Project total revenue growth at the higher end of the 15%-20% range for 2026, assuming one quarter of MANUBANK contribution.

• Pre-provision net revenue growth, excluding notable items, expected at 25%-30% for 2026.

• No Fed funds rate cuts assumed in 2026; economic forecasts project GDP growth of 2.6% and stable unemployment.

• Pending MANUBANK acquisition expected to close in H2 2026, with cost savings benefits beginning in 2027.