Hope Bancorp, Inc. (HOPE) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on HOPE

Hope Bancorp's recent performance was driven by its impressive earnings surprise history and strong growth signals. The company's ability to consistently beat earnings estimates is a testament to its solid financials and effective management. Additionally, Hope Bancorp's high earnings yield and strong income signals make it an attractive value investment opportunity. The company's participation in the 26th Annual KBW Community Bank Investor Conference and its investor presentation being made available on its website demonstrate its commitment to transparency and engagement with institutional investors.

1.c. Company Highlights

Last Price	12.46
Change Percentage	-0.36%
Open	12.54
Previous Close	12.51
Market Cap ( Millions)	1598
Volume	63641
Year High	12.79
Year Low	8.82
M A 50	11.48
M A 200	10.79

FCF Yield	7.85%
Dividend Yield	4.49%
ROE	2.62%
Debt / Equity	17.34%
Net Debt / EBIDTA	-196.21%
Price To Book	0.7
Price Earnings Ratio	27.43
Price To FCF	12.74
Price To sales	1.65
EV / EBITDA	17.13

2. Hope Bancorp's Q4 Earnings Exceed Expectations

Hope Bancorp reported a strong Q4 2025, with net income reaching $34 million, a 42% year-over-year increase and a 12% quarter-over-quarter rise. The company's net interest income was $127 million, up 1% from the prior quarter and 25% from Q4 2024. Earnings per share (EPS) came in at $0.27, beating analyst estimates of $0.26. The net interest margin (NIM) was 2.90%, a 1 basis point increase from Q3. Deposits totaled $15.6 billion, a 9% year-over-year increase, while gross loans were $14.8 billion, up 8% year-over-year. The efficiency ratio was 68%, indicating room for improvement.

Publication Date: Feb -04

                                    📋 Highlights
                                    Strong Q4 Earnings Growth::
                                                Net income rose 42% YoY to $34M and 12% QoQ.
Net Interest Income Expansion::
                                                Increased to $127M, up 1% QoQ and 25% YoY, with NIM at 2.90%.
Deposit and Loan Growth::
                                                Deposits hit $15.6B (+9% YoY), while gross loans reached $14.8B (+8% YoY).
Efficiency and Dividend::
                                                Efficiency ratio at 68%, and $0.14/share dividend declared.
2026 Outlook::
                                                Targets 15-20% revenue growth and 25-30% pre-provision net revenue growth, with 1.2% ROAA and mid-50s efficiency ratio.

                                

Outlook and Guidance

The company expects 2026 year-over-year loan growth in the high single-digit range, revenue growth of 15-20%, and pre-provision net revenue growth of 25-30%. This outlook assumes two Fed funds target rate cuts in 2026, which should provide a tailwind to net interest margin expansion from the downward repricing of time deposits and the upward repricing of maturing commercial real estate loans. Management is targeting a return on average assets of approximately 1.2% and an efficiency ratio in the mid-50 percentage range.

Asset Quality and Credit Losses

The allowance for credit losses was $157 million, and criticized loans were $351 million, down 6% quarter-over-quarter and 22% year-over-year. Net charge-offs were $3.6 million, or 10 basis points annualized, indicating a stable asset quality. The company's spot rate on total deposits was 2.68% as of December 31, 2025, with $6.3 billion of CDs repricing in 2026.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 0.7, Hope Bancorp appears reasonably valued compared to its peers. The Dividend Yield stands at 4.54%, providing a relatively attractive return for income-seeking investors. Analysts estimate revenue growth at 11.0% for next year, which, combined with the current valuation multiples, suggests a stable outlook for the stock.

3. NewsRoom

Critical Review: Glacier Bancorp (NYSE:GBCI) versus Hope Bancorp (NASDAQ:HOPE)

Feb -02

Source: defenseworld.net

Hope Bancorp Q4 Earnings Call Highlights

Jan -28

Source: defenseworld.net

Hope Bancorp, Inc. (HOPE) Q4 2025 Earnings Call Transcript

Jan -27

Source: seekingalpha.com

Hope Bancorp (HOPE) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Jan -27

Source: zacks.com

Hope Bancorp (HOPE) Q4 Earnings and Revenues Beat Estimates

Jan -27

Source: zacks.com

Head-To-Head Comparison: Avidbank (OTCMKTS:AVBH) & Hope Bancorp (NASDAQ:HOPE)

Jan -18

Source: defenseworld.net

Hope Bancorp Announces Retirement of Director Scott Whang

Jan -16

Source: businesswire.com

Hope Bancorp to Report Financial Results for the Fourth Quarter and Full Year Ended December 31, 2025, on Tuesday, January 27, 2026

Jan -13

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Banking and Related Activities

Expected Growth: 10.0%

Hope Bancorp, Inc.'s 10.0% growth in Banking and Related Activities is driven by strategic expansion into underserved Asian-American markets, increased commercial lending, and a focus on digital banking platforms. Additionally, the company's cost-saving initiatives and efficient operations have contributed to improved profitability, enabling investments in growth initiatives.

7. Detailed Products

Personal Banking

Hope Bancorp, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Business Banking

The company provides business banking services, including business checking and savings accounts, commercial loans, and cash management solutions.

Commercial Lending

Hope Bancorp, Inc. offers commercial lending services, including commercial real estate loans, construction loans, and lines of credit.

Treasury Management

The company provides treasury management services, including cash management, wire transfers, and account reconciliation.

Wealth Management

Hope Bancorp, Inc. offers wealth management services, including investment management, retirement planning, and estate planning.

Mortgage Lending

The company provides mortgage lending services, including residential and commercial mortgage loans.

8. Hope Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Hope Bancorp, Inc. operates in a highly competitive industry, but its strong brand recognition and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Hope Bancorp, Inc.'s customers have limited bargaining power due to the company's diversified customer base and lack of concentration.

Bargaining Power Of Suppliers

Hope Bancorp, Inc. relies on a few large suppliers, giving them some bargaining power, but the company's scale and diversification mitigate this threat.

Threat Of New Entrants

The banking industry has low barriers to entry, and new entrants could potentially disrupt Hope Bancorp, Inc.'s market share.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players, leading to intense rivalry and competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	63.58%
Debt Cost	5.72%
Equity Weight	36.42%
Equity Cost	9.68%
WACC	7.16%
Leverage	174.55%

11. Quality Control: Hope Bancorp, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

S&T Bancorp

A-Score: 6.6/10

Value: 7.0

Growth: 5.6

Quality: 8.1

Yield: 7.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

Northrim Bank

A-Score: 6.6/10

Value: 6.1

Growth: 5.1

Quality: 8.1

Yield: 7.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

First United

A-Score: 6.6/10

Value: 6.5

Growth: 6.3

Quality: 7.3

Yield: 6.0

Momentum: 6.5

Volatility: 7.0

1-Year Total Return ->

Central Pacific Financial

A-Score: 6.4/10

Value: 6.6

Growth: 4.9

Quality: 7.0

Yield: 7.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

Peoples Bancorp of North Carolina

A-Score: 6.1/10

Value: 6.7

Growth: 6.4

Quality: 6.6

Yield: 6.0

Momentum: 4.5

Volatility: 6.3

1-Year Total Return ->

Hope Bancorp

A-Score: 5.5/10

Value: 6.5

Growth: 3.6

Quality: 6.2

Yield: 8.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.87%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.16%

Hope Bancorp, Inc. - US43940T1097

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on HOPE

1.c. Company Highlights

Average Yield

Average Growth

Average Quality

Earnings Miss

Revenues Beats

Fairly Valued

Stable Momentum

Revenues Miss

Earnings Beats

Medium Volatility

Weak Momentum

Higher Yield

2. Hope Bancorp's Q4 Earnings Exceed Expectations

Outlook and Guidance

Asset Quality and Credit Losses

Valuation and Dividend Yield

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Banking and Related Activities

Expected Growth: 10.0%

7. Detailed Products

Personal Banking

Business Banking

Commercial Lending

Treasury Management

Wealth Management

Mortgage Lending

8. Hope Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Hope Bancorp, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.46$

Current Price

12.46$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA