Hope Bancorp Inc
NASDAQ:HOPE
Hope Bancorp Inc
Hope Bancorp Inc. is a fascinating player in the financial industry, known for its storied roots in the Korean-American community. Founded in 1986 and headquartered in Los Angeles, California, the bank was originally established to serve the financial needs of Korean immigrants. Over the years, it has grown into one of the largest Korean-American banks in the United States, providing a wide range of financial services. Hope Bancorp operates primarily through its subsidiary, Bank of Hope, recognized for its commitment to its core markets in California, New York, and New Jersey. This bank caters to personal banking needs while offering commercial loans, mortgages, and Small Business Administration (SBA) loans, deftly balancing the needs of individual consumers and small to medium-sized enterprises.
The business model of Hope Bancorp revolves around a traditional banking structure, where its profitability is primarily derived from the interest margins between deposits and loans. Avidly tapping into its strong community ties, Hope Bancorp attracts deposits, which it then uses to fund loans, seeking to maintain a healthy balance sheet while fostering economic growth within its service areas. Additional revenue streams come from various banking services, including treasury management and foreign exchange services, particularly valuable to clients operating internationally. By leveraging its deep understanding of niche markets and focusing on fostering relationships with its community, Hope Bancorp stands as a testament to the power of culturally-attuned banking in a competitive industry.
Hope Bancorp Inc. is a fascinating player in the financial industry, known for its storied roots in the Korean-American community. Founded in 1986 and headquartered in Los Angeles, California, the bank was originally established to serve the financial needs of Korean immigrants. Over the years, it has grown into one of the largest Korean-American banks in the United States, providing a wide range of financial services. Hope Bancorp operates primarily through its subsidiary, Bank of Hope, recognized for its commitment to its core markets in California, New York, and New Jersey. This bank caters to personal banking needs while offering commercial loans, mortgages, and Small Business Administration (SBA) loans, deftly balancing the needs of individual consumers and small to medium-sized enterprises.
The business model of Hope Bancorp revolves around a traditional banking structure, where its profitability is primarily derived from the interest margins between deposits and loans. Avidly tapping into its strong community ties, Hope Bancorp attracts deposits, which it then uses to fund loans, seeking to maintain a healthy balance sheet while fostering economic growth within its service areas. Additional revenue streams come from various banking services, including treasury management and foreign exchange services, particularly valuable to clients operating internationally. By leveraging its deep understanding of niche markets and focusing on fostering relationships with its community, Hope Bancorp stands as a testament to the power of culturally-attuned banking in a competitive industry.
Strong Earnings Growth: Net income for Q4 2025 was $34 million, up 42% year-over-year and 12% quarter-over-quarter, driven by higher net interest income, strong fee income, lower credit loss provision, and lower tax expense.
Revenue & Loan Growth: The bank saw 8% loan growth and 9% deposit growth year-over-year, with broad-based strength and positive impact from the Territorial Bancorp acquisition.
Capital Return: The board declared a $0.14 per share dividend and reinstated a $35 million share buyback authorization.
Asset Quality: Asset quality improved, with criticized loans down 6% quarter-over-quarter and 22% year-over-year, and net charge-offs declining.
2026 Outlook: Management expects high single-digit loan growth, 15–20% revenue growth, and 25–30% growth in pre-provision net revenue in 2026, with continued margin expansion and strong fee income.
Efficiency Goals: The company targets an efficiency ratio in the mid-50% range in the medium term and a return on average assets of approximately 1.2%.
