Hope Bancorp (HOPE) investor relations material

Executive summary

• Q2 2026 delivered strong profitability with net income of $33.0M, diluted EPS of $0.26 (up 12% QoQ), and adjusted EPS of $0.27 (up 17% sequentially and 40% YoY), marking a turnaround from a loss in Q2 2025.

• Profitability ratios improved, with pre-provision net revenue of $49M (up 6% sequentially and 25% YoY 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% YoY; net interest margin expanded to 2.96%, up 6 bps sequentially and 27 bps YoY.

• Noninterest income totaled $18.9M, up 11% sequentially and 19% YoY, driven by higher SBA loan sales and customer-related fees.

• Noninterest expense was $98M; adjusted expense $96M, up 2% sequentially and 5% YoY; efficiency ratio improved to 65.2%.

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

• Asset quality remained stable: criticized loans at $334M (2.24% of total loans), nonperforming assets at $113M (0.59% of total assets), and allowance for credit losses at $153M (1.03% of loans).

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; cost savings from MANUBANK to begin in 2027.

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