What factors drove the changes in Hope Bancorp's revenue and profit?

What is the market's earnings forecast for Hope Bancorp next quarter?

What is Hope Bancorp's latest dividend and current dividend yield?

What does Hope Bancorp do and what are its main business segments?

What is Hope Bancorp's gross profit margin?

What were the key takeaways from Hope Bancorp's earnings call?

What is the revenue and EPS growth rate for Hope Bancorp year over year?

What were the key takeaways from Hope Bancorp’s earnings call?

- **Record Profitability**: Net income up 28% YoY to $31 million, with NIM expanding 20 bps QoQ to 2.89%.
- **Strong Loan Growth**: 5% annualized loan growth across all segments, driven by disciplined underwriting and new banker hires.
- **Asset Quality Excellence**: 57% reduction in net charge-offs, 10% decline in criticized loans, and stable allowance ratio at 1.05%.
- **Cost Management**: 8 bps decline in deposit costs, +10% operating leverage despite 5% QoQ expense growth.
- **Strategic Momentum**: 30% noninterest income growth (excluding one-time items), strong Q4 pipeline, and $0.14 dividend reaffirming capital strength.

**【CEO Summary Section】**
- **Revenue Growth**: Net income of $31 million, up 28% YoY, driven by loan growth across C&amp;I, CRE, and residential mortgage segments. Net interest margin expanded 20 bps QoQ to 2.89%, the best quarterly expansion since 2012.
- **Asset Quality Improvement**: 57% reduction in net charge-offs ($5M vs. $12M QoQ), 10% decline in criticized loans to $373 million, and 17% drop in C&amp;I criticized loans.
- **Strategic Investments**: Hired experienced bankers to accelerate growth in lower middle market, project finance, and treasury management. Loan pipeline remains strong heading into Q4.
- **Dividend Policy**: Declared quarterly dividend of $0.14 per share, reflecting capital strength (all capital ratios above well-capitalized thresholds).

**【CFO Financial Commentary】**
- **Net Interest Income**: $127 million (+21% YoY), driven by loan growth and 8 bps decline in deposit costs. NIM expansion included 9 bps from higher earning assets, 6 bps from lower funding costs.
- **Noninterest Income**: $48 million in SBA loan sales, down from $67 million QoQ due to government shutdown impacting secondary market. Noninterest expense up 5% QoQ to $97 million due to talent investments, but +10% operating leverage vs. Q2.
- **Credit Metrics**: Allowance for credit losses at 1.05% of loans, stable from Q2. Provision for credit losses down $6M QoQ to $9 million, reflecting improved asset quality.

**【Q&A Highlights】**
- **Deposit Management**: $2.3 billion in CDs maturing in Q4 at 4.08%, with plans to roll down rates in line with Fed cuts. Money market beta ~85% on recent rate cut.
- **M&A Integration**: Territorial Bancorp integration progressing, with incremental cost savings from operational alignment. No major notable items reported this quarter.
- **SBA Loan Sales**: Government shutdown halted new SBA applications but no impact on pre-approved loans. Expect minimal disruption to 2025 noninterest income guidance.
- **Expense Growth**: 15% YoY noninterest expense growth reflects Territorial addition and talent investments, but revenue growth outpaced expenses (+10% operating leverage QoQ).

Hope Bancorp, Inc. (HOPE) Q3 2025 Earnings Call Transcript

- **Strategic Acquisition Success:** Hawaii market entry via Territorial Bancorp drove 17% Q/Q PPNR growth to $41.2M.
- **NII Boost from Repositioning:** $12M annualized gain from selling low-yield securities, offsetting slower rate cuts.
- **Fee Growth Acceleration:** 2025 noninterest income now expected at 25-30% YoY, led by swap fees (+$1.6M YoY).
- **Floating-Rate Exposure:** 42% of loans tied to Fed rates, benefiting from future cuts.
- **Credit Stability:** Asset quality metrics improving (crit loans -8% Q/Q), with NPLs at 61bps (well-collateralized).

**【CEO Opening Remarks】**
- Completed acquisition of Territorial Bancorp, entering Hawaii market. Net income (excluding notable items) rose 7% Q/Q to $24.5M, driven by legacy loan growth and cost improvements.
- Reported net loss of $27.9M due to one-time costs: $10.3M from securities sale, $7.6M merger expenses, and $4.9M tax remeasurement.
- Pretax pre-provision net revenue (PPNR) grew 17% Q/Q to $41.2M, reflecting acquisition and organic growth.

**【CFO Financial Commentary】**
- **Net Interest Income (NII):** $118M (+17% Q/Q), boosted by Territorial loans ($4M accretion) and securities repositioning (+$12M annualized interest).
- **Noninterest Income:** $15.9M (excl. $39M securities loss), up 44% YoY, driven by swap fees (+$1.6M YoY) and SBA loan sales ($4M gain).
- **Expenses:** $109.5M (incl. $17.5M notable items). Core expenses rose 13% Q/Q to $92M, reflecting Territorial integration.
- **Asset Quality:** Allowance coverage 1.04%, criticized loans down 8% Q/Q. NPLs at 61bps (vs. 49bps prior), driven by 1 CRE loan.
- **Tax Rate:** 14% for 3Q/4Q, down 1pt due to CA tax law change.

**【Q&A Highlights】**
- **Fee Income Outlook:** 2025 growth now expected at 25-30% YoY, driven by swap fees and loan origination fees.
- **Net Interest Margin (NIM):** Spot rate 2.93% at end-June. Deposit beta expected at 100%+ for future cuts.
- **Loan Growth:** 42% of loans floating-rate. Organic production +57% Q/Q, targeting high-single-digit 2025 growth.
- **Territorial Integration:** System conversion delayed to end-2025. Cost savings focused on executive comp, with more details later.
- **Capital Deployment:** CET1 ratio >12%, no buyback comments beyond "evaluating opportunities."
- **Credit Quality:** Cautiously optimistic, with criticized loans down 8% Q/Q and stable charge-offs (33bps annualized).

Hope Bancorp, Inc. (HOPE) Q2 2025 Earnings Call Transcript

- **Q1 2025 Results**: Net income $21.1M, merger adds $1.7B low-cost deposits. 
- **Financial Strength**: NIM 2.54%, noninterest expense tightly controlled (-1% YoY). 
- **Growth Outlook**: High single-digit loan growth, mid-20s% fee income growth. 
- **Strategic Focus**: Korean-American corporate lending, specialized C&I verticals. 
- **Credit Stability**: NCOs down 62% YoY, allowance coverage 1.11%.

**【CEO Opening Remarks】**
- Q1 2025 net income: $21.1 million ($0.17 per diluted share), excluding notable items $22.9 million ($0.19 per share). 
- Net interest income after provision: $96 million (+4% QoQ). 
- Completed merger with Territorial Bancorp on April 2, 2025, adding $1.7B low-cost deposits (1.96% cost) and $1B residential mortgage loans. 
- Dividend declared: $0.14 per share (payable May 16). 
- Total deposits $14.5B (+1% QoQ), loans $13.3B (-2% YoY). 
- Loan production up 11% YoY, pipelines strengthening in Korean-American and specialized C&I sectors. 

**【CFO Financial Details】**
- Net interest income $101M (-1% QoQ), net interest margin 2.54% (+4bps QoQ). 
- Deposit rate beta 55% since Fed cuts began in Sep 2024. 
- Noninterest income $15.7M (flat QoQ, +5% ex-Territorial sale). 
- Noninterest expense $84M (+6% QoQ due to seasonal costs, -1% YoY). 
- NCOs $8M (25bps annualized), allowance coverage 1.11%. 
- Territorial merger accretion: $14M expected for 2025, $18M one-time Q2 costs. 

**【CEO Outlook 2025】**
- Loan growth: high single digits (lower end of range). 
- Net interest income: high single-digit growth (down from prior low double-digit guide). 
- Noninterest income: mid-20s% growth (up from mid-teens). 
- Expense growth: low double digits (unchanged). 
- Key drivers: Territorial integration, Korean-American lending, specialized C&I teams (healthcare, project finance). 

**【Q&A Highlights】**
- **Rate sensitivity**: Each 25bps cut impacts NII with modest net negative effect (-$1M/Q). 
- **Loan growth drivers**: 
  - Korean-American corporate clients (direct US investments accelerating). 
  - Specialized C&I verticals (healthcare, project finance) with pipeline growth. 
  - 7 new hires in commercial lending. 
- **Credit quality**: Stable with borrowers proactive on tariffs, NCOs down 62% YoY. 
- **M&A impact**: 2025 accretion $14M, 2026+ accretion to be updated post-merger integration.

Hope Bancorp (HOPE)-22 Apr 25-2025 Q1 Earnings call transcript

- **Q4 2024 Strong Performance**: Net income $24.3M, pre-provision net revenue +14% QoQ, loan growth 2% QoQ.
- **Deposit Optimization Success**: Brokered deposits down to 7%, NIM 2.50% (Q4 2024).
- **2025 Growth Drivers**: High single-digit loan growth, $15M merger accretion, mid-teens noninterest income growth.
- **Cost Control**: Q4 2024 expenses down 5% QoQ, 2025 tax rate 20%.
- **Community Resilience**: Minimal wildfire impact (<$5M loans), $100K donated to relief efforts.
- **Key Risks**: Deposit beta sensitivity, competitive pricing pressure, CRE portfolio stabilization.


**【CEO Opening Remarks】**
- Q4 2024 net income: $24.3M ($0.20/diluted share), pre-provision net revenue up 14% QoQ to $40M.
- Loan growth: $13.6B as of Dec 31, 2024 (1% annualized YoY), average gross loans +2% QoQ.
- Deposit optimization: Brokered deposits reduced to 7% of total (from 10% in 2023), Virginia branch sale reduced deposits by $128M.
- 2025 outlook: High single-digit loan growth, low double-digit NII growth, mid-teens noninterest income growth.
- Territorial Bancorp merger expected to close Q1 2025, adding $15M accretion and low-cost deposits.
- Community impact: $100K donated to wildfire relief, minimal loan exposure (<$5M) to fire-affected areas.

**【CFO Financial Details】**
- Net interest income: $102M (Q4 2024), 3% QoQ decline due to lower loan yields offset by 21bp deposit cost decline (4.38% Q4 vs 4.59% Q3).
- Noninterest income: $16M (Q4 2024), +34% QoQ driven by $3.1M SBA loan sales gains, $1M branch sale gain.
- Expenses: $78M (Q4 2024), -5% QoQ due to lower salaries/benefits and interest credit reversal.
- Asset quality: Nonperforming assets $91M (53bp of assets), criticized loans $450M (3.3% of loans), net charge-offs 38bp Q4 vs 19bp annualized 2024.
- Efficiency ratio: 50% target over medium term, 2025 tax rate 20% (solar credits).

**【Q&A Highlights】**
1. **Deposit Beta Strategy**: Q4 2024 deposit beta 42% (spot rate 4.21% vs Fed 4.63%), targeting higher beta in 2025 with proactive repricing.
2. **Expense Growth**: 2025 noninterest expense +low double digits (vs $78M Q4 2024), includes $30M merger costs and Territorial integration expenses.
3. **SBA Loan Sales**: Q4 2024 gains $3.1M, expect similar run rate in 2025 with full year of sales.
4. **CRE Portfolio**: Organic CRE growth minimal, focus on C&I growth (low single-digit QoQ).
5. **Charge-Off Trends**: 2024 annualized 19bp, 2025 expected stable at manageable levels.
6. **Merger Synergies**: Initial cost save estimates reduced due to integration complexity, but long-term efficiency gains expected.
7. **Share Buybacks**: No immediate plans, Board will evaluate post-merger capital deployment.


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