Hope Bancorp (HOPE) investor relations material

Executive summary

• Net income for Q2 2026 was $33.0 million ($0.26 per diluted share), up 12% sequentially and a turnaround from a net loss in Q2 2025, driven by higher net interest income, increased noninterest income, and lower noninterest expense.

• Adjusted net income excluding notable items was $34.5 million ($0.27 per share), up 16% quarter-over-quarter and 40% year-over-year.

• Profitability ratios improved, with pre-provision net revenue of $49M, up 6% sequentially and 25% year-over-year on an adjusted basis.

• The pending acquisition of SMBC MANUBANK's Commercial Banking Unit is expected to close in H2 2026, supporting future growth, diversification, and enhanced middle market capabilities.

• Maintained robust capital ratios, with total capital at 13.95% and CET1 at 12.27%, well above regulatory minimums.

Financial highlights

• Net interest income was $129M, up 4% sequentially and 10% year-over-year; net interest margin expanded to 2.96%, up from 2.69% in Q2 2025.

• Noninterest income totaled $18.9M, up 11% sequentially and 19% year-over-year, reversing a prior-year loss and driven by higher SBA loan sales and customer-related fees.

• Noninterest expense was $98.5M, up 2% sequentially but down 10% year-over-year; efficiency ratio improved to 65.2% (66.6% GAAP).

• Loans grew 2% quarter-over-quarter to $15B; deposits up 1% to $15.9B, with improved deposit mix and growth in non-maturity deposits.

• Provision for credit losses was $6.8M, down from $11.1M in Q2 2025, due to improved credit quality; net charge-offs were $9M (24 bps annualized).

Outlook and guidance

• Full-year 2026 outlook unchanged: expect ~20% end-of-period loan growth (including MANUBANK), 15%-20% revenue growth, and 25%-30% pre-provision net revenue growth, all excluding notable items.

• Loan pipelines remain active; expect continued margin expansion, though at a slower pace.

• SBA gain on sale outlook for 2026 is $16M-$17M.

• MANUBANK acquisition expected to close in H2 2026, with guidance assuming one quarter of contribution and cost savings to begin in 2027.

• No Fed Funds rate changes assumed for 2026; outlook subject to macroeconomic and regulatory factors.