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Hope Bancorp Inc's Q1 Net Income Jumps 40%

Hope Bancorp’s first quarter net income rose to $29.5 million, or $0.23 per diluted share, from $21.1 million, or $0.17, a year earlier, a 40% increase. Compared with the fourth quarter of 2025, profit fell 14% from $34.5 million, or $0.27 per share.

Pre-provision net revenue climbed to $46.6 million from $32.6 million a year earlier, up 43%, and edged up 1% from $46.3 million in the prior quarter.

Net interest income reached $124.1 million, up 23% from $100.9 million in the first quarter of 2025, but down 3% from $127.4 million in the fourth quarter. Net interest margin was 2.90%, unchanged from the prior quarter and up from 2.54% a year ago. The cost of interest-bearing deposits fell to 3.37% from 4.14% a year earlier.

Noninterest income was $17.0 million, up 8% from $15.7 million a year ago but down 8% from $18.4 million in the prior quarter. Noninterest expense was $94.5 million, down 5% from $99.4 million in the fourth quarter, though up 13% from $83.9 million a year earlier. The efficiency ratio improved to 67.0% from 68.2% in the prior quarter and 72.0% a year earlier.

Total assets rose to $18.66 billion from $18.53 billion at year-end and $17.07 billion a year earlier. Gross loans were $14.74 billion, essentially flat from $14.79 billion at December 31, 2025, and up from $13.34 billion a year earlier. Total deposits increased to $15.73 billion from $15.60 billion at year-end and $14.49 billion a year earlier.

The loan mix at March 31, 2026 was $8.50 billion in commercial real estate loans, $3.73 billion in commercial and industrial loans, and $2.50 billion in residential mortgage and other loans. That compares with $8.49 billion, $3.79 billion, and $2.50 billion, respectively, at year-end.

Criticized loans fell to $325.1 million from $351.1 million in the prior quarter and $448.7 million a year earlier. The criticized loan ratio improved to 2.22% from 2.39% at year-end and 3.36% a year earlier.

Nonperforming assets declined to $120.5 million from $136.1 million in the fourth quarter, though they were above the $83.9 million reported a year earlier. Net charge-offs increased to $10.7 million from $3.6 million in the fourth quarter and $8.3 million a year earlier. The allowance for credit losses was $155.1 million, down slightly from $156.7 million at year-end and up from $147.4 million a year earlier.

Hope Bancorp repurchased 604,161 shares during the quarter for $6.7 million at an average price of $11.10. Total stockholders’ equity held at $2.28 billion, while book value per share rose to $17.86 from $17.81 at year-end. Today the company's shares have moved -1.03% to a price of $12.43. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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