Hope Bancorp Q4 profit rises on interest income, credit quality

Overview

• U.S. regional bank's Q4 net income rose 12% qtr/qtr and 42% yr/yr

• Company completed Territorial Bancorp acquisition, expanding into Hawaii

• Noninterest income increased 19% qtr/qtr, driven by swap fees and service fees

Outlook

• Hope Bancorp aims to build on momentum in 2026 and beyond

• Company expects further optimization of balance sheet and improved profitability

• Hope Bancorp sees enhanced financial performance and earnings growth ahead

Result Drivers

• NET INTEREST INCOME - Growth in net interest income contributed to a 12% increase in net income qtr/qtr

• ASSET QUALITY IMPROVEMENT - Criticized loans decreased 6% qtr/qtr, enhancing asset quality

• NONINTEREST INCOME - 19% qtr/qtr increase driven by swap fees and service fees

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Hope Bancorp Inc is $12.00, about 1.9% above its January 26 closing price of $11.78

Press Release: ID:nBw2S4Z4xa

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