Hope Bancorp, Inc.

Second-quarter 2026 revenue was $148 million. Reported diluted EPS was 26 cents, and diluted EPS excluding notable items was 27 cents, up from 23 cents in the first quarter and up 40% from 19 cents in the year-ago quarter. Pre-provision net revenue was $49 million excluding notable items, or $51 million including them, up 10% sequentially and 25% year over year. Net interest income was $129 million, up 4% sequentially and 10% year over year. Net interest margin was 2.96%, up 6 basis points sequentially and 27 basis points year over year. Non-interest income was $19 million, up 11% sequentially and 19% year over year excluding notable items. Non-interest expense was $98 million, or $96 million excluding merger-related costs, and the efficiency ratio excluding notable items improved to 65.2% from 66.9%. Gross loans were $15 billion, up 2% sequentially and 4% year over year, and deposits were $15.9 billion, up 1% sequentially. Credit metrics included criticized loans of $334 million, non-performing assets of $113 million, net charge-offs of $9 million, and an allowance for credit losses of $153 million. Full-year 2026 outlook remains essentially unchanged: end-of-period loan growth of approximately 20% including Manubank, revenue growth of 15% to 20%, and pre-provision net revenue growth of 25% to 30%, both excluding notable items and including a quarter of Manubank operations in the fourth quarter.

Kevin Kim said the quarter showed solid execution against key operating priorities, with stronger earnings, revenue growth, margin expansion, and improving profitability ratios. He emphasized that loan growth is strengthening, the deposit mix is improving, and the balance sheet remains positioned to support organic growth, capital returns, and the pending SMBC Manubank commercial banking acquisition. His tone was constructive and confident, but still framed around disciplined growth, pricing, structure, and credit standards rather than volume alone.

Juliana Imbilisca highlighted that net interest income rose to $129 million, net interest margin expanded to 2.96%, and non-interest income grew to $19 million, supported by SBA loan sales, customer-related fees, and securities gains. She said non-interest expense was $98 million, or $96 million excluding merger-related costs, and that the efficiency ratio improved to 65.2%, reflecting operating leverage. On credit, she noted criticized loans of $334 million, net charge-offs of $9 million, and an allowance for credit losses of $153 million with 1.03% coverage; on funding, she gave a June deposit spot rate of 2.58% and an interest-bearing deposit rate of 3.32%, while saying the cost of incremental competitive deposits is running about 350 to 380.

Analysts focused on deposit costs, time deposit mix, the SBA gain-on-sale outlook, and the timing and modeling impact of the pending Manubank transaction. Management said the NIM should still rise by a few basis points each quarter for the rest of the year, though not as much as in the first-to-second-quarter move, and that deposit pricing remains competitive. They also said the 2026 SBA gain-on-sale outlook is about $16 million to $17 million, the Manubank deal is still expected to close in the second half of 2026, and the guide assumes roughly one quarter of Manubank contribution. In response to deposit mix questions, management said it wants to reduce CD reliance over time but does not have a specific target and expects diversification from Territorial and Manubank to help.