Hope Bancorp (HOPE) Q4 2025 earnings summary

Executive summary

• Q4 2025 net income was $34.5 million, up 12% sequentially and 42% year-over-year, with EPS of $0.27 per share; full-year net income excluding notable items was $113.3 million, up 10% year-over-year.

• Earnings growth was driven by higher net interest and fee income, lower credit loss provisions, and lower tax expense, partially offset by higher operating expenses.

• Completed the Territorial Bancorp acquisition in April 2025, expanding into Hawaii and contributing to year-over-year growth in loans and deposits.

• Optimized balance sheet, improved core profitability metrics, and maintained strong capital ratios.

• Declared a quarterly dividend of $0.14 per share, payable in February 2026.

Financial highlights

• Net interest income for Q4 2025 was $127.4 million, up 1% sequentially and 25% year-over-year; net interest margin rose to 2.90%.

• Gross loans at year-end were $14.8 billion, up 1% sequentially and 8% year-over-year, with broad-based growth across CRE, C&I, and residential mortgage.

• Total deposits at year-end were $15.6 billion, up 9% year-over-year and down 1% sequentially due to seasonal factors.

• Noninterest income for Q4 was $18.4 million, up 19% sequentially, driven by swap fees, service fees, and gains on SBA loan sales.

• Noninterest expense was $99 million in Q4, up 3% sequentially, mainly due to compensation costs and the inclusion of Territorial Savings Bank expenses.

Outlook and guidance

• 2026 guidance projects high single-digit loan growth, 15–20% revenue growth, and 25–30% pre-provision net revenue growth.

• Medium-term targets: return on average assets of ~1.2%, high single-digit loan growth, revenue growth over 10%, and efficiency ratio in the mid-50% range.

• Effective tax rate expected between 20%-25% for 2026.

• Anticipate two Fed funds rate cuts in 2026, with positive impact on net interest margin.

• Management expects to build on improved profitability and asset quality in 2026, leveraging expanded market presence.