Hope Bancorp (HOPE) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $21.1 million ($0.17 per diluted share); adjusted net income was $22.9 million ($0.19 per share), down from $24.3 million in Q4 2024.

• Completed the merger with Territorial Bancorp on April 2, 2025, adding $1.7 billion in deposits and $1 billion in high-quality residential mortgage loans, expanding presence to Hawaii.

• All capital ratios increased quarter-over-quarter, with tangible common equity ratio rising to 10.20%.

Financial highlights

• Net interest income was $101 million, down 1% from Q4 2024; net interest margin rose to 2.54% from 2.50%.

• Noninterest income was $15.7 million, up 5% quarter-over-quarter excluding a prior one-time gain.

• Noninterest expense (excluding notable items) was $81 million, up 6% quarter-over-quarter, down 1% year-over-year.

• Total deposits at $14.5 billion, up 1% from prior quarter; loans receivable at $13.3 billion, down 2% from year-end 2024.

• Allowance for credit losses coverage ratio was 1.11% of loans; nonperforming assets were $84 million (0.49% of assets), down 8% quarter-over-quarter.

Outlook and guidance

• 2025 guidance: high single-digit percentage loan growth, high single-digit percentage net interest income growth (lowered from prior outlook), mid-20s percentage noninterest income growth, and low double-digit percentage noninterest expense growth.

• Loan growth expected to be weighted toward the second half of 2025, with $14 million in accretion income from the Territorial merger.

• Management expects robust capital and liquidity to support prudent growth amid macroeconomic and geopolitical volatility.