Hope Bancorp Reports $29.5 Million Net Income for Q1 2026, Driven by 23.1% Rise in Net Interest Income

Hope Bancorp, Inc. reported a net income of $29.5 million for the first quarter of 2026, translating to earnings per share of $0.23, an increase from $21.1 million or $0.17 per share in the same period last year. This growth in profitability was primarily driven by a 23.1% rise in net interest income, which reached $124.1 million, up from $100.8 million in the prior year. The increase in net interest income was attributed to a lower cost of deposits and a higher average balance of interest-earning assets, bolstered by the acquisition of Territorial Bancorp in April 2025. The net interest margin also improved to 2.90%, up from 2.54% a year earlier, reflecting favorable funding costs.

Total assets for Hope Bancorp increased to $18.66 billion as of March 31, 2026, a rise of $125.2 million from the previous quarter. This growth was mainly due to increases in cash and cash equivalents, as well as investment securities, despite a slight decline in loans receivable, which totaled $14.64 billion, down from $14.70 billion at the end of 2025. The company’s investment securities available for sale rose to $1.95 billion, with a net unrealized loss of $194.6 million, reflecting market interest rate movements.

In terms of operational metrics, the company’s total deposits increased by $123.3 million, or 0.8%, to $15.73 billion, with notable growth in noninterest-bearing demand deposits and money market accounts. The number of full-time equivalent employees rose to 1,424, up from 1,227 a year earlier, reflecting the integration of Territorial's workforce. The allowance for credit losses stood at $155.1 million, slightly down from $156.7 million, with a coverage ratio of 1.06% of loans receivable.

Looking ahead, Hope Bancorp is set to acquire the Commercial Banking Unit of SMBC MANUBANK, a transaction expected to close in the second half of 2026, pending regulatory approvals. This acquisition aims to enhance the bank's service offerings to Japanese commercial and retail customers in the U.S. The company remains optimistic about its growth trajectory, supported by its strategic initiatives and the integration of recent acquisitions, while also navigating potential economic challenges.