Hope Bancorp Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2026

Second quarter 2026 net income of $33.0 million, up 12% quarter-over-quarter

LOS ANGELES--(BUSINESS WIRE)--Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its second quarter and six months ended June 30, 2026.

For the second quarter of 2026, the Company reported net income of $33.0 million, or $0.26 per diluted common share, up 12% from net income of $29.5 million, or $0.23 per diluted common share, for the first quarter of 2026, and up from a net loss of $24.8 million, or $(0.19) per diluted common share, for the second quarter of 2025. Net income excluding notable items⁽¹⁾ for the second quarter of 2026 was $34.5 million, or $0.27 per diluted common share, up 16% from $29.7 million, or $0.23 per diluted common share, for the first quarter of 2026, and up 40% from net income of $24.6 million, or $0.19 per diluted common share, for the second quarter of 2025.

“Overall, we delivered strong quarterly results and are pleased with the continued progress made to improve the profitability and core operating performance of the Bank. Second quarter 2026 earnings growth reflected a combination of revenue growth and positive operating leverage, driven by loan growth, net interest margin expansion, lower funding costs, increased fee income and expense discipline,” said Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc.

“As we enter the second half of 2026, we are well-positioned to continue our momentum in executing on our key priorities. We are focused on building a more profitable and resilient franchise through disciplined balance sheet management, prudent expense control and the strengthening of client relationships to deliver long-term value for our stockholders,” continued Kim.

“Our pending acquisition of the Commercial Banking Unit of SMBC MANUBANK⁽²⁾ is closely aligned with our priorities and represents an important opportunity to expand our middle market and multinational banking capabilities, develop specialty deposit verticals, and broaden our footprint in Southern California. The transaction is anticipated to improve our 2027 earnings and returns on tangible common equity, enhance our long-term earnings capacity, and support effective capital management,” concluded Kim.

Operating Results for the Second Quarter of 2026

Net interest income and net interest margin. Net interest income totaled $129.0 million for the second quarter of 2026, up $4.9 million, or 4%, compared with $124.1 million for the first quarter of 2026, and up $11.5 million, or 10%, from the second quarter of 2025. Net interest margin for the second quarter of 2026 was 2.96%, up six basis points from 2.90% for the first quarter of 2026, and up 27 basis points from 2.69% for the year-ago quarter. The sequential quarter net interest income growth and net interest margin expansion were primarily driven by average earning asset growth, earning asset yield expansion and a lower cost of funds. The second quarter 2026 yield on average loans was 5.73%, up four basis points sequentially, and the cost of interest bearing deposits was 3.31%, down six basis points sequentially. Year-over-year, the cost of interest bearing deposits was down 46 basis points, reflecting Fed Funds target rate cuts over the period as well as the positive impact of the Territorial Bancorp acquisition, which closed on April 2, 2025, and contributed lower cost deposits to the Bank’s funding mix.

Noninterest income. For the second quarter of 2026, noninterest income totaled $18.9 million, up $1.9 million, or 11%, compared with $17.0 million for the first quarter of 2026, and up $3.0 million, or 19%, compared with noninterest income excluding notable items⁽³⁾ of $15.9 million for the second quarter of 2025. Second quarter 2025 reported noninterest income was $(23.0) million and included a $38.9 million loss on an investment portfolio repositioning. The sequential quarter growth in second quarter 2026 noninterest income reflected increased net gains on sales of Small Business Administration (“SBA”) loans, growth in customer-driven income and fees, and an increase in net gains on sales of available-for-sale securities. The Company sold $67.9 million of SBA loans in the second quarter of 2026 for a net gain of $4.4 million, compared with $53.0 million of SBA loans sold for a net gain of $3.3 million in the first quarter of 2026.

Noninterest expense. Noninterest expense for the second quarter of 2026 was $98.5 million, up $4.0 million, or 4%, from $94.5 million for the first quarter of 2026, and down $11.0 million, or 10%, from $109.5 million for the second quarter of 2025. Noninterest expense excluding notable items⁽³⁾ for the second quarter of 2026 was $96.4 million, up $2.1 million, or 2%, from $94.3 million for the first quarter of 2026, and up $4.2 million, or 5%, from $92.2 million for the second quarter of 2025. Growth in the second quarter 2026 noninterest expense was well controlled across all key areas of operating expenses.

In the second quarter of 2026, revenue growth outpaced expense growth, resulting in positive operating leverage and an improved efficiency ratio. The reported efficiency ratio for the second quarter of 2026 was 66.6%, improving from 67.0% in the prior quarter and 115.8% in the year-ago quarter. The efficiency ratio excluding notable items⁽³⁾ for the second quarter of 2026 was 65.2%, improving from 66.9% in the prior quarter and 69.1% in the year-ago quarter.

Income tax provision and tax rate. For the second quarter of 2026, the Company recorded an income tax provision of $9.6 million, compared with an income tax provision of $8.4 million for the first quarter of 2026 and an income tax benefit of $(1.3) million for the second quarter of 2025. The year-to-date effective tax rate for the first half of 2026 was 22.3%.

Balance Sheet Summary

Total assets. At June 30, 2026, total assets were $18.99 billion, compared with $18.66 billion at March 31, 2026, and $18.55 billion at June 30, 2025.

Loans. At June 30, 2026, gross loans totaled $15.03 billion, up 2%, equivalent to 8% annualized, from $14.74 billion at March 31, 2026, and up 4% from $14.45 billion at June 30, 2025. Second quarter 2026 average loans were $14.79 billion, up 1%, equivalent to 3% annualized, from $14.69 billion for the first quarter of 2026, and up 3% from $14.43 billion for the second quarter of 2025. Quarter-over-quarter and year-over-year loan growth was broad-based across the Company’s major lending portfolios of commercial and industrial, commercial real estate and residential mortgage.

The following table sets forth the loan portfolio composition at June 30, 2026, March 31, 2026, and June 30, 2025:

Deposits. Total deposits were $15.88 billion at June 30, 2026, up 1%, equivalent to 4% annualized, from $15.73 billion at March 31, 2026, and down 0.4% compared with $15.94 billion at June 30, 2025. Quarter-over-quarter, noninterest bearing demand deposits increased 5%; money market, interest bearing demand and savings deposits increased 1%, and time deposits decreased 1%. Compared with the year-ago quarter, noninterest bearing demand deposits increased 2%, while time deposits decreased 2%. The quarter-over-quarter and year-over-year decreases in time deposits were planned, to support continued reduction in the Bank’s cost of funds.

The following table sets forth the deposit composition at June 30, 2026, March 31, 2026, and June 30, 2025:

Credit Quality and Allowance for Credit Losses

Criticized loans. Overall credit quality remained stable quarter-over-quarter and improved meaningfully year-over-year. Criticized loans were $334.3 million at June 30, 2026, up $9.2 million, or 3%, quarter-over-quarter, and down $80.5 million, or 19%, year-over-year. The criticized loan ratio was 2.24% of total loans receivable at June 30, 2026, compared with 2.22% at March 31, 2026, and down 63 basis points from 2.87% at June 30, 2025.

Nonperforming assets. Nonperforming assets declined $7.7 million from the prior quarter to $112.9 million, or 0.59% of total assets, at June 30, 2026, compared with 0.65% of total assets at March 31, 2026, and 0.61% of total assets at June 30, 2025. The quarter-over-quarter improvement primarily reflected a reduction in accruing delinquent loans past due 90 days or more.

The following table sets forth the components of nonperforming assets at June 30, 2026, March 31, 2026, and June 30, 2025:

Net charge-offs. The Company recorded net charge-offs of $9.0 million for the second quarter of 2026, equivalent to 0.24%, annualized, of average loans. This compares with net charge-offs of $10.7 million, or 0.29%, annualized, of average loans for the first quarter of 2026, and $12.0 million, or 0.33%, annualized, of average loans for the second quarter of 2025.

Provision for credit losses. For the second quarter of 2026, the Company recorded a provision for credit losses of $6.8 million, compared with $8.7 million for the first quarter of 2026 and $11.1 million for the second quarter of 2025. The sequential quarter decrease in the provision for credit losses primarily reflected lower net charge-offs in the second quarter of 2026 compared with the prior quarter.

Allowance for credit losses. The allowance for credit losses totaled $153.2 million at June 30, 2026, compared with $155.1 million at March 31, 2026, and $149.5 million at June 30, 2025. The allowance coverage ratio was 1.03% of loans receivable at June 30, 2026, compared with 1.06% at March 31, 2026, and 1.04% at June 30, 2025.

The following table sets forth the allowance for credit losses and the coverage ratios at June 30, 2026, March 31, 2026, and June 30, 2025:

Capital

At June 30, 2026, the capital ratios of the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution.

The following table sets forth the capital ratios for the Company at June 30, 2026, March 31, 2026, and June 30, 2025:

Year-to-date through June 30, 2026, the Company returned $44.6 million of capital to stockholders through cash dividends and common stock repurchases. Year-to-date in 2026, the Company repurchased 772,726 shares of common stock, equivalent to 0.6% of outstanding shares at December 31, 2025, at an average price of $11.25 per share, for a total of $8.7 million, pursuant to its existing $50.0 million share repurchase authorization. As of June 30, 2026, $26.6 million remained available under the authorization. The Company also returned capital to stockholders through quarterly common stock dividends of 14 cents per share declared in both the first and the second quarters of 2026.

At June 30, 2026, total stockholders’ equity was $2.30 billion, up 1% compared with December 31, 2025. Book value per share at June 30, 2026, was $17.97, up 1% compared with $17.81 at December 31, 2025. TCE per share⁽⁴⁾ was $13.85 at June 30, 2026, up 1% compared with $13.71 at December 31, 2025.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Monday, July 27, 2026, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review its unaudited financial results for its second quarter ended June 30, 2026. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for at least one year. A telephonic replay of the call will be available at 855-669-9658 (domestic) or 412-317-0088 (international) for one week through August 3, 2026, with the replay access code 7252988.

Non-GAAP Financial Metrics

This news release and accompanying financial tables contain certain non-GAAP financial measure disclosures, including net income excluding notable items, earnings per share excluding notable items, noninterest income excluding notable items, noninterest expense excluding notable items, efficiency ratio excluding notable items, effective tax rate excluding notable items, PPNR, PPNR excluding notable items, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, TCE per share and TCE ratio. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operational performance and the Company’s capital levels and has included these figures in response to market participant interest in these financial metrics. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12.

About Hope Bancorp, Inc.

Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company for Bank of Hope, with $18.99 billion in total assets as of June 30, 2026. Following the addition of Territorial Savings as a division of Bank of Hope, the Company became the largest regional bank serving multicultural customers across the continental United States and Hawaii. Headquartered in Los Angeles, California, Bank of Hope offers a comprehensive range of commercial, corporate, and consumer banking products and services, including commercial and commercial real estate lending, SBA lending, residential mortgage and consumer lending, treasury management, foreign exchange solutions, interest rate derivatives, and international trade finance. Bank of Hope operates 45 full-service branches in California, New York, New Jersey, Washington, Texas, Illinois, Alabama and Georgia under the Bank of Hope banner, and 28 branches in Hawaii under the Territorial Savings banner. Bank of Hope also operates SBA loan production offices, commercial loan production offices, and residential mortgage loan production offices throughout the United States, and a representative office in Seoul, South Korea. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to www.bankofhope.com for Bank of Hope and www.tsbhawaii.bank for Territorial Savings, a division of Bank of Hope. By including the foregoing website address links, the Company does not intend to incorporate by reference any material contained or accessible therein.

Forward-Looking Statements

Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will”, “believes”, “expects”, “anticipates”, “intends”, ”plans”, “estimates”, “projects”, and similar expressions and statements regarding Hope Bancorp’s strategic initiatives, the pending acquisition of the Commercial Banking Unit of SMBC MANUBANK (“MANUBANK”), and Hope Bancorp’s future financial and operational results and capital allocation strategy. With respect to any such forward-looking statements, Hope Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. With the consummation of the pending acquisition of MANUBANK, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among other things: the failure of the conditions to closing to be satisfied or waived; difficulties and delays in integrating Hope Bancorp and MANUBANK and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; and deposit attrition, operating costs, customer loss and business disruption following the acquisition, including difficulties in maintaining relationships with employees and customers, which may be greater than expected. The closing of the proposed transaction is subject to regulatory approvals and the satisfaction of other customary closing conditions. Other risks and uncertainties include, but are not limited to: possible deterioration of economic conditions in Hope Bancorp’s areas of operation and in the U.S. generally or elsewhere, including as a result of the interest rate environment, supply chain disruptions, inflation, labor shortages, changes in the housing and real estate markets, consumer confidence and spending habits; risk of adverse economic or political conditions in South Korea; interest rate risk associated with volatile interest rates and related asset‑liability matching risk; liquidity risks; the possibility that Hope Bancorp may discontinue or otherwise limit repurchases of its common stock; risk of significant non‑earning assets and net credit losses that could occur, particularly in times of weak economic conditions or rising interest rates; the failure of or changes to assumptions and estimates underlying Hope Bancorp’s allowance for credit losses; risk of natural disasters; risk of cybersecurity incidents; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp; and the impact of U.S. and global trade policies, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom fluctuations in commodity prices such as oil, as well as geopolitical instability and international tensions. For additional information concerning these and other risk factors, see Hope Bancorp’s most recent Annual Report on Form 10‑K and other documents Hope Bancorp files with the SEC from time to time. Hope Bancorp does not undertake, and specifically disclaims, any obligation to update any forward‑looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Julianna Balicka
Executive Vice President & Chief Financial Officer
InvestorRelations@bankofhope.com

Maxime Olivan
Senior Vice President & Investor Relations Manager
InvestorRelations@bankofhope.com