--- title: "Hope Bancorp Signals Growth Momentum in Earnings Call" type: "News" locale: "en" url: "https://longbridge.com/en/news/293990548.md" description: "Hope Bancorp reported Q2 2026 revenue of $148 million and diluted EPS of $0.26, reflecting strong growth. Key highlights include a 4% rise in net interest income to $129 million, expanding net interest margin to 2.96%, and robust capital ratios (CET1: 12.27%). The bank announced the pending acquisition of SMBC MANUBANK’s commercial unit, expected to add $2.3B in loans and $2.6B in deposits. Management emphasized improving asset quality, disciplined expense management, and continued shareholder returns via dividends and buybacks." datetime: "2026-07-28T00:10:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293990548.md) - [en](https://longbridge.com/en/news/293990548.md) - [zh-HK](https://longbridge.com/zh-HK/news/293990548.md) --- # Hope Bancorp Signals Growth Momentum in Earnings Call Hope Bancorp ((HOPE)) has held its Q2 earnings call. Read on for the main highlights of the call. ### Claim 55% Off TipRanks - Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions - Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks Hope Bancorp’s latest earnings call painted a broadly upbeat picture, with management emphasizing solid revenue momentum, widening margins, and improving profitability. Executives highlighted that most core metrics – from loans and deposits to pre-provision earnings and asset quality – are trending in the right direction, while capital remains robust enough to fund growth and shareholder returns despite a few manageable risks. ## Strong Revenue and EPS Growth Hope Bancorp posted second quarter 2026 revenue of $148 million and diluted EPS of $0.26, a 12% sequential increase that underscored improving profitability. On an adjusted basis excluding notable items, EPS reached $0.27, up 17% quarter-over-quarter and 40% higher than the $0.19 recorded a year ago, signaling clear earnings leverage. ## Net Interest Income and Margin Expansion Net interest income climbed to $129 million, up 4% from the prior quarter and 10% year-over-year as asset yields outpaced funding costs. Net interest margin expanded to 2.96%, rising 6 basis points sequentially and 27 basis points year-over-year, with a June spot NIM of 2.98% and management expecting a few more basis points of improvement each quarter. ## Pre-provision Net Revenue Improvement Pre-provision net revenue reached $49 million in the quarter, up from $47 million, highlighting better earnings power before credit costs. Excluding notable items, PPNR improved to $51 million, an increase of 10% sequentially and 25% year-over-year, reflecting both revenue growth and disciplined cost control. ## Loan and Deposit Growth Gross loans rose to $15.0 billion, up 2% quarter-over-quarter – an 8% annualized pace – and 4% higher than a year earlier, led by commercial and industrial lending with support from CRE and residential mortgages. Deposits increased to $15.9 billion, up 1% sequentially, providing funding stability as the bank balances growth with pricing discipline. ## Capital Strength and Shareholder Returns Hope Bancorp’s capital position remained solid, with a common equity Tier 1 ratio of 12.27% and a total capital ratio of 13.95%, giving room for both growth and capital deployment. Year-to-date, the company returned $45 million to shareholders through dividends and buybacks, including the repurchase of roughly 773,000 shares at an average price of $11.25 and a declared quarterly dividend of $0.14. ## MANUBANK Acquisition to Boost Scale Management reiterated that the pending all-cash acquisition of SMBC MANUBANK’s commercial banking unit is expected to close in the second half of 2026, subject to approvals. Based on June 30 balances, the deal should add around $2.3 billion in loans and $2.6 billion in deposits, deepen middle-market and multinational capabilities, and provide incremental net cash flow to enhance core earnings. ## Non-interest Income and SBA Gains Non-interest income rose to $19 million, up 11% quarter-over-quarter and 19% year-over-year when excluding notable items, as fee-based lines of business contributed more meaningfully. The bank sold $68 million of SBA loans for a $4 million gain, up from $3 million in the prior quarter, and expects total SBA gains of $16–$17 million for full-year 2026. ## Improved Efficiency and Expense Management Operating efficiency continued to trend better as revenue growth outpaced costs, delivering positive operating leverage despite investment needs and merger-related spending. Non-interest expense totaled $98 million, or $96 million excluding merger costs, with the adjusted efficiency ratio improving to 65.2% from 66.9% in the prior quarter and 69.1% a year earlier. ## Stable to Improving Asset Quality Asset quality indicators remained generally healthy, with criticized loans at $334 million, down 19% year-over-year even though they rose modestly quarter-over-quarter. Nonperforming assets stood at $113 million, or 59 basis points of total assets, while net charge-offs fell to $9 million and the allowance for credit losses of $153 million provided coverage of 1.03% of loans. ## Reliance on MANUBANK Timing for Guidance Management underscored that its 2026 outlook assumes roughly one quarter of contribution from MANUBANK and end-of-period loan growth of about 20% including the acquired balances. Any delay in regulatory approvals or closing could affect revenue, PPNR, and loan growth targets, underscoring the execution risk tied to the transaction’s timing. ## Deposit Pricing Competition and Cost Pressure Executives noted that deposit competition remains intense, with the incremental cost of new interest-bearing deposits running roughly 3.50%–3.80% depending on product and market. The bank’s June spot deposit rate was 2.58% and interest-bearing deposits averaged 3.32%, and management acknowledged that further pricing pressure could limit future margin expansion. ## Time Deposit Mix and Shift Away from CDs Time deposits remain a favored product among Hope Bancorp’s core customers, leaving the bank with a higher-than-industry CD mix that it plans to reduce only gradually. Management said planned declines in time deposits will weigh on funding mix in the near term, making acquisitions and a steady shift toward more diversified deposit sources an important strategic priority. ## Non-interest Expense Increase and Merger Costs While management stressed cost discipline, total non-interest expense did rise quarter-over-quarter, in part due to merger-related costs tied to the MANUBANK deal and ongoing investments. Investors were reminded that expenses will remain an area to watch as integration activities progress, even as the bank seeks to preserve positive operating leverage. ## Quarterly Rise in Criticized Loans Criticized loans increased by $9 million sequentially to $334 million, suggesting some pockets of stress despite marked improvement compared with last year, when criticized loan levels were much higher. Nonperforming assets stayed at 59 basis points of total assets, and management emphasized ongoing credit oversight to contain any emerging issues. ## SBA Gain Reliance and Market Premium Sensitivity Management acknowledged that strong SBA gain-on-sale activity is supporting non-interest income, with current market premiums in the low- to mid-8% range. However, they also noted that performance is sensitive to secondary market conditions, and the bank will balance loan sales and retention decisions while targeting $16–$17 million of SBA gains for the year. ## Forward-looking Guidance and Outlook For full-year 2026, Hope Bancorp reaffirmed guidance for end-of-period loan growth of about 20% including MANUBANK, revenue growth of 15–20%, and PPNR growth of 25–30%, all excluding notable items. Management expects NIM to expand a few basis points each quarter, SBA gain-on-sale proceeds of $16–$17 million, and emphasized prudent expense control, disciplined credit oversight, and ongoing work to improve deposit mix and funding costs. Hope Bancorp’s earnings call suggested a bank steadily building momentum, with rising earnings, widening margins, and a pending acquisition that could materially expand its balance sheet and capabilities. While competitive funding markets, rising expenses, and transaction timing introduce some uncertainty, management’s tone and numbers pointed to a constructive outlook that will likely keep investors’ attention on execution rather than solvency or profitability concerns. ### Related Stocks - [HOPE.US](https://longbridge.com/en/quote/HOPE.US.md) ## Related News & Research - [Hope Bancorp director Daisy Y. 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