Hope Bancorp Reports 38% Decrease in Net Income for Fiscal Year 2025

**Hope Bancorp, Inc. Reports Financial Results for Fiscal Year 2025**

Hope Bancorp, Inc. (NASDAQ: HOPE) reported net income of $61.6 million for the year ended December 31, 2025, a decrease of 38% compared to the $99.6 million reported for the year ended December 31, 2024. Diluted earnings per common share were $0.49, compared to $0.82 in the previous year. The company's return on average assets (ROA) was 0.34%, and return on average stockholders' equity (ROE) was 2.77%. The net interest margin was 2.76%. The results for 2025 included $51.8 million of notable items, net of taxes, including a loss on investment portfolio repositioning of $38.9 million, merger-related costs of $21.5 million, and a $4.8 million impact from a change in California's state tax apportionment law. Excluding these notable items, net income was $113.3 million, or $0.89 per diluted common share.

The company's net interest income increased by 10% to $472.2 million, compared to $427.9 million for 2024. This increase was primarily driven by a lower cost of funds and an increase in the average balance of loans. However, this was partially offset by a lower yield on loans and an increase in the average balance of deposits. Noninterest income decreased by 44% to $26.5 million, compared to $47.1 million for 2024, primarily due to net losses on sales of investment securities AFS. Noninterest expense increased by 20% to $389.6 million, compared to $324.7 million for 2024, primarily driven by increases in salaries and employee benefits, merger and restructuring-related costs, and furniture, equipment and software expense.

Key operational developments included the acquisition of Territorial Bancorp Inc. on April 2, 2025, which added 29 branches in Hawaii. As a result of the acquisition, loans receivable increased to $14.70 billion, and deposits increased to $15.60 billion. The company's allowance for credit losses to loans receivable ratio was 1.07% at December 31, 2025, compared to 1.11% at December 31, 2024. Nonperforming assets increased to $136.1 million, representing 0.73% of total assets, compared to $90.8 million, or 0.53% of total assets, at the end of the previous year. The company's employee headcount increased to 1,434 full-time equivalent employees at December 31, 2025, compared to 1,244 at the end of 2024.

Looking ahead, the company is subject to various risks and uncertainties, including economic conditions in its market areas, interest rate risk, cybersecurity incidents, and regulatory changes. The company is also focused on integrating Territorial Bancorp and achieving anticipated synergies. The company's ability to pay dividends is subject to restrictions set forth in Delaware law and regulatory authority of the Federal Reserve. The Board expects to continue to pay quarterly cash dividends, however, no assurance can be given as to whether future dividends will be paid as cash dividend payments are dependent on the Company’s future earnings, capital requirements, and financial condition.