HOPE — Hope Bancorp, Inc.

Summary of Hope Bancorp Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: $148 million, up 5% quarter-over-quarter.
• Earnings Per Share (EPS): Reported diluted EPS of 26 cents, up 12% sequentially; EPS excluding notable items was 27 cents, up 17% from Q1 2026 and 40% year-over-year.
• Pre-Provision Net Revenue: $49 million, up 6% from Q1 2026; $51 million when excluding notable items, reflecting a 10% increase from the prior quarter.
• Loan Growth: Gross loans increased by 2% quarter-over-quarter to $15 billion.
• Deposits: Total deposits rose 1% to $15.9 billion; non-interest-bearing demand deposits increased by 5%.
• Net Interest Margin: Expanded to 2.96%, up six basis points from Q1 2026 and 27 basis points year-over-year.
• Capital Ratios: Common equity tier one ratio at 12.27%; total capital ratio at 13.95%.

2. Strategic Updates and Business Highlights

• Acquisition: Pending acquisition of SMBC Manubank's commercial banking unit expected to close in H2 2026, anticipated to add approximately $2.3 billion in loans and $2.6 billion in deposits.
• Partnership: Collaboration with SMBC to support Japanese customers in the U.S., enhancing multinational client reach.
• Shareholder Returns: $45 million returned to shareholders year-to-date through dividends and stock repurchases, with a quarterly dividend of 14 cents declared.

3. Forward Guidance and Outlook

• Loan Growth: Expected end-of-period loan growth of approximately 20% for the full year, including Manubank contributions.
• Revenue Growth: Forecasted revenue growth between 15% and 20%, and pre-provision net revenue growth of 25% to 30%, excluding notable items.
• Expense Management: Continued focus on prudent expense control while investing in technology and commercial banking capabilities.

4. Bad News, Challenges, or Points of Concern

• Competitive Pressures: The deposit market remains competitive, impacting pricing strategies and costs.
• Time Deposits: Planned reductions in time deposits may take time to achieve, as they are preferred by the core customer base.
• Credit Quality: While credit trends are stable, there is ongoing scrutiny of criticized loans, which increased slightly from the previous quarter.

5. Notable Q&A Insights

• Net Interest Margin: Expected to continue expanding, albeit at a slower pace than previous quarters, with competitive pressures on deposit costs.
• SBA Loan Sales: Strong performance in SBA loan sales with expectations to maintain a target of $16 to $17 million in gains for 2026.
• Deposit Mix: Efforts to reduce reliance on CDs are ongoing, with a focus on diversifying the deposit base through acquisitions.
• Loan Origination Activity: Robust loan origination expected to continue into Q3 2026, with a strong pipeline and emphasis on credit quality.

This summary encapsulates the key points from Hope Bancorp's Q2 2026 earnings call, highlighting both the positive developments and challenges the company faces moving forward.