Hope Bancorp Reports $30.8 Million Net Income for Q3 2025, Driven by Territorial Bancorp Acquisition

Hope Bancorp, Inc. reported a net income of $30.8 million, or $0.24 per diluted share, for the third quarter of 2025, marking a 27.7% increase from $24.2 million, or $0.20 per diluted share, in the same period last year. For the nine months ending September 30, 2025, net income was $24.1 million, a decrease from $75.3 million in the prior year, largely due to notable items including a $38.9 million loss on investment securities and merger-related expenses. The company’s total assets increased to $18.51 billion, up 8.5% from $17.05 billion at the end of 2024, primarily driven by the acquisition of Territorial Bancorp, which added $1.93 billion in assets.

The acquisition of Territorial Bancorp on April 2, 2025, significantly impacted the company’s financials, contributing to a 7.1% increase in loans receivable, which reached $14.59 billion. The merger also resulted in a substantial increase in deposits, which rose to $15.83 billion, a 10.5% increase from $14.33 billion at the end of 2024. The company’s noninterest income for the third quarter was $15.4 million, up from $11.8 million in the previous year, driven by higher service fees and swap fees, although year-to-date noninterest income decreased due to losses on investment securities.

Operationally, the company reported a provision for credit losses of $8.7 million for the third quarter, up from $3.3 million in the same quarter last year, reflecting increased charge-offs primarily in commercial and industrial loans. The allowance for credit losses stood at $152.5 million, or 1.05% of total loans, slightly down from 1.11% at the end of 2024. The company’s employee headcount increased to 1,452, up from 1,236 a year earlier, reflecting the integration of Territorial’s workforce.

Looking ahead, Hope Bancorp anticipates continued growth driven by the integration of Territorial and the expansion of its product offerings. The company is focused on managing its interest rate risk and maintaining a strong capital position, with total stockholders' equity increasing to $2.26 billion as of September 30, 2025. The company remains well-capitalized under regulatory standards, with capital ratios exceeding the required minimums. However, management acknowledges potential risks from economic conditions, including the impact of government policies and market fluctuations, which could affect future performance.