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Hope Bancorp
(NASDAQ:HOPE)
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Rating:68Neutral
Price Target:
$14.50
â–²(4.54% Upside)
Action:Downgraded
Date:10/02/26
HOPE scores positively on fundamentals and forward outlook: TTM profitability and cash flow improved meaningfully, leverage is currently conservative, and management reiterated strong 2026 growth and margin-expansion expectations tied to organic momentum and the MANUBANK transaction. Offsetting this, technicals are currently weak (below key moving averages with negative MACD), and the multi-year pattern shows profitability and balance-sheet variability that remains a key risk to monitor. Valuation is supportive with a moderate P/E and a ~4.2% dividend yield.
Positive Factors
Profitability and Cash Generation
The TTM rebound combines materially higher earnings with strong cash conversion, indicating that reported profitability is supported by operating cash generation. This provides Hope Bancorp with greater capacity to fund lending growth, maintain capital strength, and absorb normal regional-banking volatility.
Negative Factors
Deposit Pricing Pressure
Elevated pricing for incremental deposits can compress the spread between loan yields and funding costs, directly challenging net interest margin expansion. Persistent competition would make growth more expensive and could limit how much of the bank’s revenue improvement reaches pre-provision earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and Cash Generation
The TTM rebound combines materially higher earnings with strong cash conversion, indicating that reported profitability is supported by operating cash generation. This provides Hope Bancorp with greater capacity to fund lending growth, maintain capital strength, and absorb normal regional-banking volatility.
Read all positive factors
Hope Bancorp (HOPE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend Yield3.97%
Average Volume (3M)977.17K
Price to Earnings (P/E)14.1
Beta (1Y)0.81
Revenue Growth7.35%
EPS Growth178.63%
CountryUS
Employees1,432
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.00
Shares Outstanding127,741,840
10 Day Avg. Volume843,603
30 Day Avg. Volume977,174
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)0.62
Price to Sales (P/S)1.46
P/FCF Ratio9.32
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue2.15
Enterprise Value/Gross Profit3.98
Enterprise Value/Ebitda10.13
Forecast
1Y Price Target
$15.50Price Target Upside11.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.1
Revenue Forecast (FY)$621.30M
Hope Bancorp Business Overview & Revenue Model
Company Description
Hope Bancorp, Inc., established in 2000 and headquartered in Los Angeles, California, functions as the parent entity for Bank of Hope. Through its subsidiary, Bank of Hope, it delivers a comprehensive suite of banking solutions to both individuals...
How the Company Makes Money
Hope Bancorp primarily earns money through traditional banking activities conducted by Bank of Hope. The core revenue stream is net interest income: the bank collects interest and fees on loans and other interest-earning assets (such as commercial...
Hope Bancorp Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: revenue, NII, NIM, PPNR, loans and deposits all grew, efficiency improved, asset quality metrics trended favorably year-over-year, and capital ratios remain strong while management returned capital to shareholders. Key drivers of near-term growth include continued organic loan origination and the pending MANUBANK acquisition (expected to add meaningful loans and deposits). Principal risks highlighted were competitive deposit pricing, the timing dependency on the MANUBANK close for guidance, modest quarter-to-quarter increases in criticized loans, and some merger-related expenses. Overall, the positives (broad-based revenue and margin expansion, improving PPNR, capital strength, and a clear acquisition that adds scale) outweigh the manageable execution and market risks discussed on the call.Positive Updates
Strong Revenue and EPS Growth
Second quarter 2026 revenue of $148 million; reported diluted EPS of $0.26, up 12% sequentially. Diluted EPS excluding notable items $0.27, up 17% sequentially and up 40% year-over-year from $0.19.
Negative Updates
Reliance on MANUBANK Timing for Guidance
Management's 2026 outlook assumes approximately one quarter of MANUBANK contribution and end-of-period loan growth of ~20% including MANUBANK. Closing remains subject to regulatory approvals and timing uncertainty; any delay could impact revenue, PPNR and loan growth targets.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue and EPS Growth
Second quarter 2026 revenue of $148 million; reported diluted EPS of $0.26, up 12% sequentially. Diluted EPS excluding notable items $0.27, up 17% sequentially and up 40% year-over-year from $0.19.
Read all positive updates
Company Guidance
Management's full‑year 2026 guidance was reiterated: management expects end‑of‑period loan growth of ~20% (including MANUBANK balances), revenue growth of 15–20%, and pre‑provision net revenue (PPNR) growth of 25–30% (all excluding notable items and assuming one quarter of MANUBANK contribution in Q4); the MANUBANK deal (expected to close in H2 2026) is anticipated to add about $2.3B of loans and $2.6B of deposits based on June 30 balances, net interest margin is expected to expand a few basis points each quarter for the rest of 2026 (June spot NIM ~2.98%, Q2 NIM 2.96%), SBA gain‑on‑sale proceeds are guided to roughly $16–17M for 2026, and the outlook emphasizes prudent expense discipline, active credit oversight, improved deposit mix and funding‑cost management.Hope Bancorp Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
74
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.02B | 967.79M | 1.00B | 1.09B | 767.51M | 610.13M |
| Gross Profit | 547.91M | 470.36M | 456.64M | 539.85M | 619.97M | 568.56M |
| EBITDA | 215.37M | 150.92M | 132.96M | 177.89M | 296.05M | 275.27M |
| Net Income | 127.88M | 58.52M | 99.63M | 133.67M | 218.28M | 204.57M |
Balance Sheet | ||||||
| Total Assets | 18.99B | 18.53B | 17.05B | 19.13B | 19.16B | 17.89B |
| Cash, Cash Equivalents and Short-Term Investments | 640.44M | 2.63B | 458.20M | 4.07B | 2.48B | 3.00B |
| Total Debt | 583.67M | 395.88M | 392.64M | 1.96B | 1.25B | 678.87M |
| Total Liabilities | 16.70B | 16.25B | 14.92B | 17.01B | 17.15B | 15.80B |
| Stockholders Equity | 2.30B | 2.28B | 2.13B | 2.12B | 2.02B | 2.09B |
Cash Flow | ||||||
| Free Cash Flow | 183.92M | 151.46M | 106.91M | 460.65M | 476.42M | 316.99M |
| Operating Cash Flow | 202.71M | 164.55M | 116.72M | 473.78M | 485.54M | 324.21M |
| Investing Cash Flow | -538.51M | 525.31M | 466.52M | 1.29B | -1.47B | -993.04M |
| Financing Cash Flow | 286.51M | -588.00M | -2.05B | -341.47M | 1.18B | 634.52M |
Hope Bancorp Technical Analysis
Positive
13.87
Price Trends
13.77
Positive
13.61
Positive
12.63
Positive
Market Momentum
0.05
Negative
63.20
Neutral
92.21
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOPE, the sentiment is Positive. The current price of 13.87 is above the 20-day moving average (MA) of 13.53, above the 50-day MA of 13.77, and above the 200-day MA of 12.63, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 63.20 is Neutral, neither overbought nor oversold. The STOCH value of 92.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOPE.
Hope Bancorp Risk Analysis
Hope Bancorp disclosed 34 risk factors in its most recent earnings report. Hope Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hope Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.26B | 9.62 | 16.84% | 3.02% | -0.13% | 9.53% | |
75 Outperform | $953.82M | 10.76 | 11.20% | 3.45% | 4.08% | 38.09% | |
70 Outperform | $390.45M | 9.87 | 11.57% | 2.26% | -1.28% | 130.72% | |
68 Neutral | $1.80B | 14.11 | 5.61% | 3.97% | 7.35% | 178.63% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $442.89M | 10.08 | 8.34% | 2.43% | 4.40% | 74.44% | |
64 Neutral | $1.05B | 11.81 | 15.47% | 2.97% | 24.59% | 17.46% |
* Financial Sector Average
HOPE
Hope Bancorp
14.11
3.91
38.31%
HAFC
Hanmi Financial
32.17
6.00
22.93%
PFBC
Preferred Bank
106.09
15.62
17.27%
RBB
Rbb Bancorp
26.32
7.35
38.75%
MVBF
MVB Financial
30.11
4.51
17.63%
MCBS
MetroCity Bankshares
36.38
11.12
44.02%
Hope Bancorp Corporate Events
Business Operations and StrategyM&A Transactions
Hope Bancorp Completes SMBC MANUBANK Commercial Banking Acquisition
Positive
Oct 1, 2026
On October 1, 2026, Hope Bancorp’s subsidiary Bank of Hope completed the acquisition of the Commercial Banking Unit of SMBC MANUBANK, previously announced in a definitive agreement dated March 31, 2026. The deal adds seven California locatio...
Business Operations and StrategyM&A Transactions
Hope Bancorp gains approvals for SMBC unit acquisition
Positive
Sep 2, 2026
On September 2, 2026, Hope Bancorp said its subsidiary Bank of Hope had secured all required regulatory approvals to acquire the Commercial Banking Unit of SMBC MANUBANK from SMBC Americas Holdings and Sumitomo Mitsui Banking Corporation. Approval...
Business Operations and StrategyExecutive/Board Changes
Hope Bancorp extends CEO Kevin Kim’s employment agreement
Positive
Aug 25, 2026
As of August 24, 2026, Hope Bancorp, Inc. and its subsidiary Bank of Hope executed an extension to the employment agreement of Kevin S. Kim, who will continue as President and Chief Executive Officer of the Company and Chief Executive Officer of t...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Hope Bancorp Reports Strong Q2 2026 Results
Positive
Jul 27, 2026
On July 27, 2026, Hope Bancorp reported unaudited financial results for the second quarter and first half of 2026, posting net income of $33.0 million, or $0.26 per diluted share, a 12% sequential increase and a sharp reversal from a net loss in t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.