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Hope Bancorp Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 27 July 2026: press release. The quarter’s numbers.

Key takeaways

  • Net income rose 12% sequentially: Net income was $33.0 million, or $0.26 per diluted share, up from $29.5 million, or $0.23, in the first quarter of 2026, and from a $24.8 million loss in the year-ago quarter. Source
  • Earnings excluding notable items rose: Net income excluding notable items was $34.5 million, or $0.27 per diluted share, up 16% from the first quarter and up 40% from the second quarter of 2025. Source
  • Net interest income rose 4% sequentially: Net interest income was $129.0 million, up $4.9 million from the first quarter and up 10% from the year-ago quarter, driven by earning asset growth, yield expansion and lower cost of funds. Source
  • Net interest margin widened six basis points: Net interest margin was 2.96%, up six basis points from the first quarter and up 27 basis points from the year-ago quarter. Source
  • Loans grew 1% on average: Average loans were $14.79 billion, up 1% (3% annualized) from the first quarter and up 3% from the year-ago quarter. Gross loans were $15.03 billion at June 30, 2026. Source
  • Net charge-offs fell to 0.24%: Net charge-offs were $9.0 million, or 0.24% annualized of average loans, down from $10.7 million, or 0.29%, in the first quarter. Source
  • Deal targets middle market and deposits: The pending MANUBANK unit acquisition is described as adding middle market and multinational banking, specialty deposit verticals, and a broader Southern California footprint. Source

“Second quarter 2026 earnings growth reflected a combination of revenue growth and positive operating leverage, driven by loan growth, net interest margin expansion, lower funding costs, increased fee income and expense discipline”

Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc.

Results and growth drivers

  • Net income rose 12% sequentially: Net income was $33.0 million, or $0.26 per diluted share, up from $29.5 million, or $0.23, in the first quarter of 2026, and from a $24.8 million loss in the year-ago quarter. Source
  • Earnings excluding notable items rose: Net income excluding notable items was $34.5 million, or $0.27 per diluted share, up 16% from the first quarter and up 40% from the second quarter of 2025. Source
  • Revenue grew faster than expenses: Revenue growth outpaced expense growth in the quarter, producing positive operating leverage and an improved efficiency ratio, per the company. Source

Net interest income and margin

  • Net interest income rose 4% sequentially: Net interest income was $129.0 million, up $4.9 million from the first quarter and up 10% from the year-ago quarter, driven by earning asset growth, yield expansion and lower cost of funds. Source
  • Net interest margin widened six basis points: Net interest margin was 2.96%, up six basis points from the first quarter and up 27 basis points from the year-ago quarter. Source
  • Deposit costs fell year over year: Yield on average loans was 5.73%, up four basis points sequentially. Cost of interest bearing deposits was 3.31%, down 46 basis points year over year, reflecting rate cuts and Territorial deposits. Source

“We are focused on building a more profitable and resilient franchise through disciplined balance sheet management, prudent expense control and the strengthening of client relationships to deliver long-term value for our stockholders”

Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc.

Loans and deposits

  • Loans grew 1% on average: Average loans were $14.79 billion, up 1% (3% annualized) from the first quarter and up 3% from the year-ago quarter. Gross loans were $15.03 billion at June 30, 2026. Source
  • Loan growth spread across portfolios: Loan growth covered commercial and industrial, commercial real estate and residential mortgage lending. Commercial real estate was 57.1% of gross loans at June 30, 2026. Source
  • Time deposits cut as planned: Total deposits were $15.88 billion. Noninterest bearing demand deposits rose 5% sequentially while time deposits fell 1%, a reduction the company described as planned to lower its cost of funds. Source

Noninterest income and expense

  • Noninterest income rose 11%: Noninterest income was $18.9 million, up from $17.0 million in the first quarter, with higher SBA loan sale gains, customer-driven fees and securities gains. Source
  • SBA loan sales produced larger gains: SBA loan sales were $67.9 million in the quarter, compared with $53.0 million in the first quarter, and the net gain rose from $3.3 million to $4.4 million. Source
  • Expenses rose 2% excluding notable items: Noninterest expense excluding notable items was $96.4 million, up 2% from the first quarter and up 5% from the year-ago quarter. Reported expense was $98.5 million. Source
  • Efficiency ratio improved to 66.6%: The reported efficiency ratio was 66.6%, down from 67.0% in the first quarter and 115.8% in the year-ago quarter. Excluding notable items it was 65.2%. Source

“The transaction is anticipated to improve our 2027 earnings and returns on tangible common equity, enhance our long-term earnings capacity, and support effective capital management”

Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp, Inc.

Credit quality and provision

  • Net charge-offs fell to 0.24%: Net charge-offs were $9.0 million, or 0.24% annualized of average loans, down from $10.7 million, or 0.29%, in the first quarter. Source
  • Provision fell with lower charge-offs: The provision for credit losses was $6.8 million, down from $8.7 million in the first quarter and $11.1 million a year earlier, which the company attributed to lower net charge-offs. Source
  • Nonperforming assets declined on delinquencies: Nonperforming assets were $112.9 million, or 0.59% of total assets, down $7.7 million from the prior quarter, mainly from fewer accruing loans past due 90 days or more. Source
  • Allowance coverage at 1.03%: The allowance for credit losses was $153.2 million, or 1.03% of loans receivable, compared with 1.06% in the first quarter and 1.04% a year earlier. Source

Capital and shareholder returns

  • Capital ratios remained above well-capitalized: The CET1 ratio was 12.27%, down from 12.36% in the first quarter. The total capital ratio was 13.95%, and both the Company and the Bank stayed above the requirements. Source
  • Year-to-date buybacks and dividends: Year to date the company returned $44.6 million through dividends and repurchases. Repurchases used $8.7 million, and $26.6 million remained under the $50.0 million authorization. Source
  • Quarterly dividend held at 14 cents: Common dividends of 14 cents per share were declared in both the first and second quarters of 2026. Source
  • Book value per share rose 1%: Book value per share was $17.97 and TCE per share was $13.85, each up 1% from December 31, 2025. The TCE ratio was 9.58%, down from 9.68% in the first quarter. Source

MANUBANK commercial banking acquisition

  • Deal targets middle market and deposits: The pending MANUBANK unit acquisition is described as adding middle market and multinational banking, specialty deposit verticals, and a broader Southern California footprint. Source
  • Deal aligned with stated priorities: Management described the pending acquisition as closely aligned with its key priorities. Source

Coming up, as management said on 27 July 2026

  • MANUBANK closing awaits approvals: The acquisition remains subject to regulatory approvals and other customary closing conditions. The release gives no closing date. Source

Figures management reported

FigureReported
Net interest margin Source2.96%
Net interest income Source$129.0 million
Loans Source$15.03 billion gross loans
Deposits Source$15.88 billion
Provision for credit losses Source$6.8 million
Net charge-offs Source$9.0 million, 0.24% annualized
Nonperforming assets Source$112.9 million, 0.59% of total assets
CET1 ratio Source12.27%
Efficiency ratio Source66.6%

Risks management discussed

  • Financial: Criticized loans rose $9.2 million from March to June 2026, to $334.3 million, though they were 19% lower than a year earlier. Source
  • Operational: Merger-related costs were $2.1 million in the quarter and are treated as notable items in the non-GAAP reconciliations. Source

Earlier plans management reported on

  • Not stated: The first-quarter release gave second-half 2026 closing timing. The second-quarter release describes the deal as pending and does not restate that timing.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.