Hope Bancorp (HOPE) AI Stock Analysis

• Market Cap: $1.38B
• Dividend Yield: 5.19%
• Average Volume (3M): 714.01K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 0.98
• Revenue Growth: -12.55%
• EPS Growth: -59.97%
• Country: US
• Employees: 1,227
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -0.22
• Shares Outstanding: 128,179,760
• 10 Day Avg. Volume: 773,744
• 30 Day Avg. Volume: 714,011
• PEG Ratio: -0.59
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 13.86
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 3.21
• Enterprise Value/Ebitda: 21.85
• 1Y Price Target: $13.00
• Price Target Upside: 19.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $12.50 ▲(14.47% Upside)

Hope Bancorp's overall score reflects a stable financial position with positive technical momentum and strategic growth initiatives. However, high valuation and profitability pressures weigh on the score. The earnings call provided a positive outlook, emphasizing growth and operational improvements.

Positive Factors

Strategic Acquisition

The acquisition of Territorial Bancorp expands Hope Bancorp's market presence into Hawaii, enhancing its geographic diversification and potential customer base, which is likely to support long-term growth and revenue stability.

Improved Net Interest Income

The increase in net interest income reflects effective management of interest-earning assets and liabilities, contributing to a stronger net interest margin and supporting the company's profitability over time.

Cash Flow Management

Positive free cash flow growth indicates effective cash management, providing the company with the flexibility to invest in growth opportunities, pay down debt, or return capital to shareholders.

Negative Factors

Declining Revenue Growth

The declining revenue growth trend suggests challenges in expanding the company's market share or product offerings, which could impact long-term competitiveness and profitability.

Profitability Pressures

Decreasing profit margins highlight potential inefficiencies or increased costs, which could strain the company's ability to maintain profitability and invest in future growth.

Increase in Nonperforming Assets

Rising nonperforming assets indicate potential credit quality issues, which could lead to higher provisions for credit losses and impact the bank's financial health and lending capacity.

Hope Bancorp Business Overview & Revenue Model

Company Description

Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides banking services for small and medium-sized businesses, and individuals in the United States. The company accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. Its loan products include commercial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, and other business related financing needs; real estate loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, auto, credit card, and personal loans. The company also offers trade finance services, including the issuance and negotiation of letters of credit, as well as handles documentary collections; warehouse lines of credit to mortgage loan originators; and commercial equipment lease financing. In addition, it provides cash management services, such as remote deposit capture, lock box, and ACH origination services; investment and wealth management services; mobile banking services; debit card services; foreign exchanges services, safe deposit boxes, and other customary bank services; internet banking services; and automated teller machine services. As of December 31, 2021, the company operated 47 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, and Alabama; SBA loan production offices in Atlanta, Houston, Dallas, Denver, Portland, Seattle, Fremont, and Southern California; and a representative office in Seoul, Korea. Hope Bancorp, Inc. was incorporated in 2000 and is headquartered in Los Angeles, California.

How the Company Makes Money

Hope Bancorp generates revenue primarily through interest income earned from loans and leases, which constitute a significant portion of its earnings. The bank offers various loan products, including commercial real estate loans, residential mortgages, and small business loans, each of which yields interest payments over the life of the loan. Additionally, the company earns non-interest income from service charges on deposit accounts, fees for treasury management services, and other banking-related fees. A critical factor contributing to its earnings is the bank's ability to maintain a healthy net interest margin by effectively managing its interest-earning assets and interest-bearing liabilities. Furthermore, partnerships with local businesses and community organizations help Hope Bancorp expand its customer base and enhance its revenue streams.

Hope Bancorp Financial Statement Overview

Summary

Hope Bancorp shows stability with a strong balance sheet and positive cash flow trends. However, declining revenue and profit margins, along with reduced return on equity, indicate profitability pressures.

Income Statement

Hope Bancorp's income statement shows a decline in revenue growth with a negative trend in recent periods, particularly a -2.85% in the TTM. The gross profit margin has decreased over time, indicating pressure on profitability. The net profit margin has also declined significantly from 2022 to TTM, reflecting challenges in maintaining profitability. Despite these challenges, the company maintains a positive EBIT and EBITDA margin, although these have also decreased, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet of Hope Bancorp reflects a strong equity position with a low debt-to-equity ratio of 0.09 in the TTM, indicating conservative leverage. However, the return on equity has decreased over time, suggesting reduced efficiency in generating returns from equity. The equity ratio remains stable, indicating a solid capital structure, but the declining ROE is a concern for future profitability.

Cash Flow

The cash flow statement shows a positive trend in free cash flow growth in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is low, suggesting potential inefficiencies in converting income to cash. However, the free cash flow to net income ratio remains strong, indicating effective cash management despite the challenges in operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	937.49M	1.00B	1.09B	767.51M	610.13M	645.49M
Gross Profit	411.66M	456.64M	539.85M	619.97M	568.56M	419.11M
EBITDA	60.47M	132.96M	177.89M	296.05M	275.27M	142.29M
Net Income	41.71M	99.63M	133.67M	218.28M	204.57M	111.52M
Balance Sheet
Total Assets	18.55B	17.05B	19.13B	19.16B	17.89B	17.11B
Cash, Cash Equivalents and Short-Term Investments	2.96B	458.20M	4.07B	2.48B	3.00B	2.66B
Total Debt	200.90M	392.64M	1.96B	1.25B	678.87M	610.77M
Total Liabilities	16.32B	14.92B	17.01B	17.15B	15.80B	15.05B
Stockholders Equity	2.22B	2.13B	2.12B	2.02B	2.09B	2.05B
Cash Flow
Free Cash Flow	138.41M	106.91M	460.65M	476.42M	316.99M	160.94M
Operating Cash Flow	148.72M	116.72M	473.78M	485.54M	324.21M	165.92M
Investing Cash Flow	696.37M	466.52M	1.29B	-1.47B	-993.04M	-1.83B
Financing Cash Flow	-809.40M	-2.05B	-341.47M	1.18B	634.52M	1.32B

Hope Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 10.92 is below the 20-day moving average (MA) of 11.02, above the 50-day MA of 10.67, and above the 200-day MA of 10.66, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOPE.

Hope Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCRH	78 Outperform	1.32B	11.73	11.41%	0.31%	-0.76%	-1.60%
TCBK	76 Outperform	1.46B	13.26	9.41%	3.00%	1.15%	-0.39%
NBHC	76 Outperform	1.47B	12.61	8.83%	3.03%	0.60%	-6.31%
DCOM	73 Outperform	1.33B	36.16	2.08%	3.29%	-3.08%	-45.24%
HOPE	71 Outperform	$1.38B	30.33	1.92%	5.19%	-12.55%	-59.97%
TFIN	67 Neutral	1.26B	121.01	1.49%	―	2.02%	-60.54%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Hope Bancorp Corporate Events

Hope Bancorp Announces Steven S. Koh’s Retirement

Hope Bancorp announced the retirement of Steven S. Koh, Honorary Chairman and board member, effective December 31, 2025. Koh, a pivotal figure in the creation of the first Korean American regional bank in the U.S., has served the company for 40 years and plans to focus on philanthropy post-retirement. His departure is not due to any disagreements with the company, and the board will be adjusted to 10 directors following his retirement.

Hope Bancorp Reports Q2 2025 Net Loss Amid Repositioning

On July 22, 2025, Hope Bancorp reported a net loss of $27.9 million for the second quarter of 2025, primarily due to securities portfolio repositioning, the acquisition of Territorial Bancorp, and changes in California’s tax law. Despite the loss, the company experienced a 17% increase in net interest income and a 7% growth in net income excluding notable items, driven by strong loan growth and reduced deposit costs. The acquisition of Territorial Bancorp expanded Hope Bancorp’s market into Hawaii, contributing to a diversified loan portfolio and improved cost of deposits. The strategic repositioning of investment securities is expected to enhance future earnings, positioning the company for growth opportunities.

Hope Bancorp Completes Strategic Investment Repositioning

On June 13, 2025, Hope Bancorp, Inc. completed a strategic repositioning of its investment securities portfolio, selling $422 million in lower-yielding securities to purchase higher-yielding options. This move is expected to increase the company’s annual interest income by $12 million, despite an estimated $40 million pre-tax net loss from the sale, with an earn-back period of three years. The repositioning will not significantly impact stockholders’ equity or regulatory capital ratios.