Hope Bancorp Reports $27.9 Million Net Loss in Q2 2025 Following Territorial Acquisition

Hope Bancorp, Inc. reported a net loss of $27.9 million, or $(0.22) per diluted share, for the second quarter of 2025, a significant decline from the net income of $25.3 million, or $0.21 per diluted share, recorded in the same period of 2024. The loss was primarily attributed to notable items totaling $52.4 million, which included a $38.9 million loss on the sale of investment securities as part of a strategic repositioning of the investment portfolio, and $17.3 million in merger-related costs following the acquisition of Territorial Bancorp Inc. on April 2, 2025. For the six months ended June 30, 2025, the company reported a net loss of $6.8 million compared to a net income of $51.1 million for the same period in 2024.

Total assets increased to $18.55 billion at June 30, 2025, up from $17.05 billion at the end of 2024, largely due to the acquisition of Territorial, which added approximately $1.93 billion in assets, including $1.07 billion in loans receivable. The loan portfolio grew to $14.43 billion, reflecting a 6.0% increase from the previous period, driven by the addition of residential mortgage loans from the merger. Deposits also rose significantly, reaching $15.94 billion, an increase of $1.62 billion, or 11.3%, primarily due to $1.67 billion in deposits assumed from Territorial.

The company’s net interest income before provision for credit losses was $117.5 million for the second quarter of 2025, an increase of 11.0% from $105.9 million in the same quarter of 2024. This growth was attributed to a lower cost of deposits and an increase in the average balance of interest-earning assets. However, the provision for credit losses surged to $15 million for the quarter, up from $1.4 million a year earlier, reflecting increased charge-offs, particularly in commercial and industrial loans.

Operationally, the company expanded its branch network to 46 full-service branches across various states and 29 branches in Hawaii under the Territorial Savings brand. The total employee headcount increased to 1,416, up from 1,238 a year prior, reflecting the integration of Territorial's workforce. Looking ahead, Hope Bancorp anticipates that the merger will enhance its market position and operational efficiency, although it acknowledges potential challenges in integrating the two organizations and managing the associated costs. The company remains focused on leveraging its expanded footprint to drive growth and profitability in the coming quarters.