Hope Bancorp reported third‑quarter 2025 results, posting net income of $30.8 million, or $0.24 per diluted share, a 28% year‑over‑year increase from the $24.2 million reported in the same quarter last year. The company’s net interest income rose to $126.6 million, up 8% from $117.5 million in the second quarter, and the net interest margin expanded to 2.89%, a 20‑basis‑point gain over the 2.69% reported in Q2.
Loan growth was robust, with total loans increasing to $14.62 billion, a 1.2% rise from the previous quarter. The deposit mix improved as brokered deposits fell 18% quarter‑over‑quarter to 4.13% of total deposits, while the weighted average cost of deposits decreased, contributing to the margin expansion. Credit quality also strengthened, with criticized loans declining 10% to $372.9 million, a 2.56% ratio of total loans, and non‑performing assets holding steady at 0.61% of total assets.
Capital and liquidity remained solid, with total stockholders’ equity at $2.26 billion and a Common Equity Tier 1 ratio of 12.12%. The company’s leverage ratio was 10.85%, and its total capital ratio stood at 13.83%, all well above regulatory requirements. Total assets for the quarter were $18.51 billion, a slight decline from $18.55 billion in Q2.
The company also declared a quarterly cash dividend of $0.14 per common share. The Q3 earnings per share of $0.24 fell slightly short of analyst estimates of $0.25 per share, despite revenue surpassing expectations. The efficiency ratio improved to 67.5% (excluding notable items) in Q3 from 69.1% in Q2.
Management highlighted the rebound from a net loss of $27.9 million, or $(0.22) per diluted share, in Q2 2025, which was largely driven by securities portfolio repositioning, acquisition costs related to the Territorial Bancorp Inc. purchase, and a change in California state tax apportionment law. CEO Kevin S. Kim emphasized diversified loan growth, lower cost of deposits, and improved asset quality as key achievements for the quarter. Analysts maintain a "Hold" rating on the stock, reflecting a cautious outlook amid broader sector concerns about loan quality.
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