Hope Bancorp Reports Financial Results for the Fourth Quarter and Full Year Ended December 31, 2025

LOS ANGELES--( BUSINESS WIRE)--Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its fourth quarter and full year ended December 31, 2025.

For the three months ended December 31, 2025, the Company recorded net income of $34.5 million, or $0.27 per diluted common share, up 12% from net income of $30.8 million, or $0.24 per diluted common share, for the three months ended September 30, 2025, and up 42% from net income of $24.3 million, or $0.20 per diluted common share, for the three months ended December 31, 2024.

For the full year ended December 31, 2025, net income totaled $61.6 million, or $0.49 per diluted common share. Excluding notable items (1), net income for the full year ended December 31, 2025, totaled $113.3 million, or $0.89 per diluted common share, up 10% from $103.4 million, or $0.85 per diluted common share, for the full year ended December 31, 2024.

“We delivered solid earnings growth in the fourth quarter of 2025, with net income up 12% from the third quarter of 2025, reflecting growth in net interest income, strength in customer fee revenue, and lower provisions for credit losses,” commented Kevin S. Kim, Chairman, President and Chief Executive Officer.

“For the full year 2025, we significantly lowered our cost of deposits, reduced reliance on brokered deposits, enhanced our earning assets mix, added experienced senior leadership as well as front line talent, and strengthened our asset quality with a steady decrease in criticized assets in each quarter of 2025. We also completed the acquisition of Territorial Bancorp in April 2025, which expanded our banking footprint to the strategically attractive market of Hawaii,” continued Kim. “These actions contributed to further optimizing our balance sheet and meaningfully improved our underlying core profitability metrics. We are well positioned to build on this momentum in 2026 and beyond, as we continue making progress towards enhancing our financial performance and earnings growth.”

“I am deeply grateful for the dedication of our colleagues at Bank of Hope. Their steadfast commitment to excellence has propelled our organization forward and strengthened our position as the leading regional bank serving multicultural communities across the continental United States and Hawaii. I am confident that our collective focus and hard work will drive even greater positive outcomes in the years to come,” concluded Kim.

(1)

Net income, profitability metrics and earnings per share excluding notable items are non-GAAP financial measures. Notable items in 2025 comprised merger-related expenses, restructuring-related items, a net loss on investment portfolio repositioning, a reversal of an FDIC special assessment, and the impact of a California state tax law change. Notable items in 2024 comprised merger-related expenses, restructuring-related items, and an FDIC special assessment expense. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12.

Operating Results for the Fourth Quarter of 2025

Net interest income and net interest margin. Net interest income before provision for credit losses totaled $127.4 million for the fourth quarter of 2025, an increase of $0.8 million, or 1%, compared with $126.6 million for the third quarter of 2025. Net interest margin for the fourth quarter of 2025 increased by 1 basis point to 2.90%, up from 2.89% for the third quarter of 2025, and expanded 40 basis points year-over-year, up from 2.50% for the fourth quarter of 2024.

The quarter-over-quarter increases in net interest income and net interest margin were primarily driven by a faster decline in the cost of interest bearing liabilities, relative to the change in the yield on average earning assets. For the fourth quarter of 2025, the cost of interest bearing deposits decreased 17 basis points to 3.52%, reflecting deposit repricing and the impact of federal funds target rate cuts, compared with an 11 basis point decrease in the yield on average earning assets.

Noninterest income. For the fourth quarter of 2025, noninterest income totaled $18.4 million, up $3.0 million, or 19%, compared with $15.4 million for the third quarter of 2025. The increase was driven by a meaningful growth in customer-level swap fees, which increased $2.4 million quarter-over-quarter, as well as higher service fees on deposit accounts, gains on the sale of securities, and increased loan-related fees. The Company sold $46.0 million of Small Business Administration (“SBA”) loans in the fourth quarter of 2025 for a net gain of $2.6 million, compared with $48.1 million in the third quarter of 2025 for a net gain of $2.8 million.

Noninterest expense. Noninterest expense for the fourth quarter of 2025 totaled $99.4 million, up 3% from $96.9 million for the third quarter of 2025. The quarter-over-quarter change in noninterest expense was primarily driven by higher compensation-related costs, which largely reflected the impact of hiring to strengthen the franchise and support revenue generation capabilities. The efficiency ratio was 68.2% for the fourth quarter of 2025, essentially stable compared with the third quarter of 2025 as revenue growth supported the investment spending.

Income tax provision and tax rate. For the fourth quarter of 2025, the Company recorded a provision for income tax of $4.7 million, compared with a provision for income tax of $5.6 million for the third quarter of 2025. For the fourth quarter of 2025, the reported effective tax rate was 11.9%. For the full year ended December 31, 2025, the reported effective tax rate was 20.3%, compared with 25.1% for the full year ended December 31, 2024. The year-over-year decrease in the full year effective tax rate was primarily due to the positive impacts from renewable energy and affordable housing partnership investment tax credits that the Company realized in 2025. The fourth quarter 2025 provision for income tax also included true up entries related to deferred tax asset and liability remeasurement.

Balance Sheet Summary

Total assets. At December 31, 2025, total assets totaled $18.53 billion, compared with $18.51 billion as of September 30, 2025 and $17.05 billion as of December 31, 2024.

Loans. At December 31, 2025, gross loans totaled $14.79 billion, up 1%, or 4% annualized, from $14.62 billion at September 30, 2025. The quarter-over-quarter increase in loans was spread across the major loan portfolios of commercial real estate, commercial and industrial, and residential mortgage loans. Year-over-year, gross loans were up 8% from $13.63 billion at December 31, 2024, largely reflecting organic residential mortgage growth and the impact of the Territorial Bancorp acquisition.

The following table sets forth the loan portfolio composition at December 31, 2025, September 30, 2025, and December 31, 2024:

(dollars in thousands) (unaudited)

12/31/2025

9/30/2025

12/31/2024

Balance

Percentage

Balance

Percentage

Balance

Percentage

Commercial real estate (“CRE”) loans

8,494,508

57.4

8,434,919

57.7

8,527,008

62.6

Commercial and industrial (“C&I”) loans

3,794,788

25.7

3,752,111

25.6

3,981,441

29.2

Residential mortgage and other loans

2,498,621

16.9

2,436,607

16.7

1,124,314

8.2

Gross loans (including held for sale)

14,787,917

100.0

14,623,637

100.0

13,632,763

100.0

Deposits. Total deposits of $15.60 billion at December 31, 2025, decreased 1% from $15.83 billion at September 30, 2025, and increased 9% from $14.33 billion at December 31, 2024. The quarter-over-quarter change largely reflected typical year-end seasonality in certain commercial client funds. The year-over-year growth largely reflected the impact of the Territorial Bancorp acquisition.

The following table sets forth the deposit composition at December 31, 2025, September 30, 2025, and December 31, 2024:

(dollars in thousands) (unaudited)

12/31/2025

9/30/2025

12/31/2024

Balance

Percentage

Balance

Percentage

Balance

Percentage

Noninterest bearing demand deposits

3,371,759

21.6

3,507,659

22.2

3,377,950

23.6

Money market, interest bearing demand, and savings deposits

5,856,373

37.5

5,995,488

37.9

5,175,735

36.1

Time deposits

6,375,011

40.9

6,328,115

39.9

5,773,804

40.3

Total deposits

15,603,143

100.0

15,831,262

100.0

14,327,489

100.0

Gross loan-to-deposit ratio

94.8

92.4

95.2

Credit Quality and Allowance for Credit Losses

Criticized loans. Criticized loans decreased $21.8 million, or 6%, quarter-over-quarter to $351.1 million at December 31, 2025, down from $372.9 million at September 30, 2025, primarily driven by a 48% quarter-over-quarter reduction in C&I special mention loans. Year-over-year, criticized loans were down $98.9 million, or 22%, from $450.0 million at December 31, 2024, reflecting sustained improvement from successful workouts of problem loans and the Company’s proactive approach to credit risk management. The criticized loan ratio improved to 2.39% of total loans receivable at December 31, 2025, down 17 basis points from 2.56% at September 30, 2025, and down 91 basis points from 3.30% at December 31, 2024.

The following table sets forth the breakdown of criticized loans at December 31, 2025, September 30, 2025, and December 31, 2024:

(dollars in thousands) (unaudited)

12/31/2025

9/30/2025

12/31/2024

Special mention loans

94,003

131,384

179,073

Classified loans

257,113

241,483

270,896

Total criticized loans

351,116

372,867

449,969

Criticized loans/total loans receivable

2.39

2.56

3.30

Nonperforming assets. Nonperforming assets totaled $136.1 million, or 0.73% of total assets, at December 31, 2025, compared with $112.2 million, or 0.61% of total assets, at September 30, 2025, and $90.8 million, or 0.53% of total assets, at December 31, 2024.

The following table sets forth the components of nonperforming assets at December 31, 2025, September 30, 2025, and December 31, 2024:

(dollars in thousands) (unaudited)

12/31/2025

9/30/2025

12/31/2024

Loans on nonaccrual status (1)

131,747

110,010

90,564

Accruing delinquent loans past due 90 days or more

3,943

2,149

229

Total nonperforming loans

135,690

112,159

90,793

Other real estate owned

365

—

Total nonperforming assets

136,055

112,159

90,793

Nonperforming assets/total assets

0.73

0.61

0.53

(1)

Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.6 million, $15.3 million and $12.8 million at December 31, 2025, September 30, 2025, and December 31, 2024, respectively.

Net charge offs. The Company recorded net charge-offs of $3.6 million for the fourth quarter of 2025, equivalent to 0.10%, annualized, of average loans. This compares with net charge-offs of $5.1 million, or 0.14%, annualized, of average loans for the third quarter of 2025. For the full year 2025, net charge-offs were $29.0 million, or 0.20% of average loans.

Allowance for credit losses. The allowance for credit losses totaled $156.7 million at December 31, 2025, compared with $152.5 million at September 30, 2025, and $150.5 million at December 31, 2024. The allowance coverage ratio was 1.07% of loans receivable at December 31, 2025, compared with 1.05% at September 30, 2025, and 1.11% at December 31, 2024. The year-over-year change in the allowance coverage ratio largely reflects the impact of the Territorial Bancorp acquisition.

The following table sets forth the allowance for credit losses and the coverage ratios at December 31, 2025, September 30, 2025, and December 31, 2024:

(dollars in thousands) (unaudited)

12/31/2025

9/30/2025

12/31/2024

Allowance for credit losses

156,661

152,509

150,527

Allowance for credit losses/loans receivable

1.07

1.05

1.11

Provision for credit losses. For the fourth quarter of 2025, the Company recorded provision for credit losses of $7.2 million, compared with $8.7 million for the third quarter of 2025. The quarter-over-quarter decrease in the provision for credit losses primarily reflected lower net charge-offs in the fourth quarter of 2025, as well as the quarter-over-quarter change in the allowance for unfunded commitments. For the full year 2025, the provision for credit losses was $31.8 million.

Capital

At December 31, 2025, the Company and the Bank’s capital ratios continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. The completion of the Territorial Bancorp acquisition on April 2, 2025, impacted prior year capital and capital ratio comparisons.

The following table sets forth the regulatory capital ratios for the Company at December 31, 2025, September 30, 2025, and December 31, 2024:

(unaudited)

12/31/2025

9/30/2025

12/31/2024

Minimum Guideline for “Well-Capitalized”

Common Equity Tier 1 Capital Ratio

12.27

12.14

13.06

6.50

Tier 1 Capital Ratio

12.96

12.83

13.79

8.00

Total Capital Ratio

13.99

13.85

14.78

10.00

Leverage Ratio

11.05

10.86

11.83

5.00

At December 31, 2025, total stockholders’ equity was $2.28 billion, an increase of 1% compared with $2.26 billion at September 30, 2025. Tangible common equity (“TCE”) per share (2) was $13.71 at December 31, 2025, compared with $13.53 at September 30, 2025. The TCE ratio (2) was 9.76% at December 31, 2025, up 12 basis points compared with 9.64% at September 30, 2025.

The following table sets forth the TCE per share and the TCE ratio at December 31, 2025, September 30, 2025, and December 31, 2024.

(unaudited)

12/31/2025

9/30/2025

12/31/2024

TCE per share

13.71

13.53

13.81

TCE ratio

9.76

9.64

10.05

(2)

TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12.

Investor Conference Call

The Company previously announced that it will host an investor conference call on Tuesday, January 27, 2026, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review its unaudited financial results for its fourth quarter and full year ended December 31, 2025. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for at least one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through February 3, 2026, with the replay access code 3224067.

Non-GAAP Financial Metrics

This news release and accompanying financial tables contain certain non-GAAP financial measure disclosures, including net income excluding notable items, earnings per share excluding notable items, noninterest income excluding notable items, noninterest expense excluding notable items, provision for credit losses excluding notable items, efficiency ratio excluding notable items, effective tax rate excluding notable items, PPNR, PPNR excluding notable items, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, TCE per share and TCE ratio. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operational performance and the Company’s capital levels and has included these figures in response to market participant interest in these financial metrics. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12.

About Hope Bancorp, Inc.

Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company for Bank of Hope, the only regional Korean American bank in the United States, with $18.53 billion in total assets as of December 31, 2025. Following the addition of Territorial Savings as a division of Bank of Hope, the Company became the largest regional bank serving multicultural customers across the continental United States and Hawaii. Headquartered in Los Angeles, Bank of Hope offers a comprehensive range of commercial, corporate and consumer banking products and services, including commercial and commercial real estate lending, SBA lending, residential mortgage and consumer lending, treasury management, foreign exchange solutions, interest rate derivatives, and international trade finance. Bank of Hope operates 45 full-service branches in California, New York, New Jersey, Washington, Texas, Illinois, Alabama and Georgia under the Bank of Hope banner, and 29 branches in Hawaii under the Territorial Savings banner. Bank of Hope also operates SBA loan production offices, commercial loan production offices, and residential mortgage loan production offices throughout the United States, and a representative office in Seoul, South Korea. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to www.bankofhope.com for Bank of Hope and www.tsbhawaii.bank for Territorial Savings, a division of Bank of Hope. By including the foregoing website address links, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.

Forward-Looking Statements

Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” and similar expressions. With respect to any such forward-looking statements, Hope Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. With the consummation of the acquisition of Territorial Bancorp, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Hope Bancorp and Territorial Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; and deposit attrition, operating costs, customer loss and business disruption following the acquisition, including difficulties in maintaining relationships with employees and customers, may be greater than expected. Other risks and uncertainties include, but are not limited to: possible renewed deterioration in economic conditions in Hope Bancorp’s areas of operation or elsewhere; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying Hope Bancorp’s allowances for credit losses; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp; the impact of U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and geopolitical instability; and risks from natural disasters. For additional information concerning these and other risk factors, see Hope Bancorp’s most recent Annual Report on Form 10-K and other documents Hope Bancorp files with the SEC from time to time. Hope Bancorp does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share data)

Assets:

12/31/2025

9/30/2025

% change

12/31/2024

% change

Cash and due from banks

560,059

454,909

458,199

Investment securities

2,072,864

2,266,034

2,075,628

—

Federal Home Loan Bank (“FHLB”) stock and other investments

60,176

106,411

(43

57,196

Gross loans, including loans held for sale

14,787,917

14,623,637

13,632,763

Allowance for credit losses

(156,661

)

(152,509

)

(150,527

)

Accrued interest receivable

52,211

53,159

51,169

Premises and equipment, net

69,589

69,152

51,759

Goodwill and intangible assets

525,938

524,503

—

466,781

Other assets

559,533

565,503

411,040

Total assets

18,531,626

18,510,799

—

17,054,008

Liabilities:

Deposits

15,603,143

15,831,262

14,327,489

FHLB and Federal Reserve Bank (“FRB”) borrowings

284,922

24,878

1,045

239,000

Subordinated debentures and convertible notes, net

110,962

110,610

—

109,584

Accrued interest payable

78,310

74,376

93,784

(16

Other liabilities

171,021

210,713

(19

149,646

Total liabilities

16,248,358

16,251,839

—

14,919,503

Stockholders’ Equity:

Common stock, $0.001 par value

146

—

138

Additional paid-in capital

1,523,702

1,521,669

—

1,445,373

Retained earnings

1,172,394

1,155,874

1,181,533

Treasury stock, at cost

(264,667

)

(264,667

)

—

(264,667

)

—

Accumulated other comprehensive loss, net

(148,307

)

(154,062

)

(227,872

)

Total stockholders’ equity

2,283,268

2,258,960

2,134,505

Total liabilities and stockholders’ equity

18,531,626

18,510,799

—

17,054,008

Common stock shares – authorized

300,000,000

Common stock shares – outstanding

128,201,655

128,185,271

120,755,658

Treasury stock shares

17,382,835

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

Three Months Ended

Twelve Months Ended

12/31/2025

9/30/2025

% change

12/31/2024

% change

12/31/2025

12/31/2024

% change

Interest and fees on loans

214,128

216,774

203,828

837,226

837,159

—

Interest on investment securities

21,107

21,467

16,930

76,235

68,549

Interest on cash and deposits at other banks

4,204

5,273

(20

4,694

(10

23,465

44,668

(47

Interest on other investments and FHLB dividends

767

1,186

(35

1,169

(34

4,238

3,604

Total interest income

240,206

244,700

226,621

941,164

953,980

Interest on deposits

109,388

115,425

121,645

(10

457,250

495,448

Interest on borrowings

3,413

2,718

2,841

11,680

30,681

(62

Total interest expense

112,801

118,143

124,486

468,930

526,129

(11

Net interest income before provision

127,405

126,557

102,135

472,234

427,851

Provision for credit losses

7,200

8,710

(17

10,000

(28

31,802

17,280

Net interest income after provision

120,205

117,847

92,135

440,432

410,571

Service fees on deposit accounts

3,249

3,235

—

2,809

12,511

10,728

Net gains on sales of SBA loans

2,566

2,774

3,063

(16

12,469

7,765

Net gains (losses) on sales of securities available for sale

1,168

—

100

837

(37,688

)

936

N/A

Other income and fees

11,368

9,376

8,166

39,176

26,642

Total noninterest income

18,351

15,385

15,881

26,468

47,077

(44

Salaries and employee benefits

57,906

54,910

42,016

214,110

177,860

Occupancy

9,003

9,153

6,837

34,206

27,469

Furniture and equipment

8,706

8,780

5,436

32,020

23,968

Data processing and communications

3,624

3,346

2,961

12,475

9,684

Amortization of investments in affordable housing partnerships

2,940

3,216

2,429

10,547

9,051

FDIC assessment

3,051

2,942

2,684

10,983

10,813

FDIC special assessment

(691

)

—

100

—

100

(691

)

691

N/A

Earned interest credit

3,028

3,529

(14

4,605

(34

12,954

23,447

(45

Merger and restructuring related costs

776

958

(19

583

21,534

5,627

283

Other noninterest expense

11,085

10,027

10,039

41,485

36,074

Total noninterest expense

99,428

96,861

77,590

389,623

324,684

Income before income taxes

39,128

36,371

30,426

77,277

132,964

(42

Income tax provision

4,662

5,595

(17

6,089

(23

15,689

33,334

(53

Net income

34,466

30,776

24,337

61,588

99,630

(38

Earnings per common share – diluted

0.27

0.24

0.20

0.49

0.82

Weighted average shares outstanding – diluted

128,769,564

128,593,874

121,401,285

126,774,552

121,108,594

Hope Bancorp, Inc.

Selected Financial Data

Unaudited

For the Three Months Ended

For the Twelve Months Ended

Profitability measures (annualized):

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Earnings per common share - diluted (not annualized)

0.27

0.24

0.20

0.49

0.82

Earnings per common share - diluted excluding notable items (not annualized) (1)

0.27

0.25

0.20

0.89

0.85

Return on average assets (“ROA”)

0.74

0.66

0.57

0.34

0.56

ROA excluding notable items (1)

0.74

0.68

0.56

0.62

0.58

Return on average equity (“ROE”)

6.06

5.50

4.51

2.77

4.68

ROE excluding notable items (1)

6.06

5.64

4.46

5.10

4.85

Return on average tangible common equity (“ROTCE”) (1)

7.87

7.19

5.76

3.60

5.99

ROTCE excluding notable items (1)

7.88

7.36

5.69

6.62

6.22

Net interest margin

2.90

2.89

2.50

2.76

2.55

Efficiency ratio (not annualized)

68.22

68.24

65.75

78.13

68.36

Efficiency ratio excluding notable items (not annualized) (1)

68.16

67.56

65.81

68.60

67.18

(1)

Earnings per common share - diluted excluding notable items, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12.

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

12/31/2025

9/30/2025

12/31/2024

Interest

Annualized

Interest

Annualized

Interest

Annualized

Average

Income/

Average

Income/

Average

Income/

Average

Balance

Expense

Yield/Cost

Balance

Expense

Yield/Cost

Balance

Expense

Yield/Cost

INTEREST EARNING ASSETS:

Loans, including loans held for sale

14,646,767

214,128

5.80

14,522,425

216,774

5.92

13,626,965

203,828

5.95

Investment securities

2,261,726

21,107

3.70

2,256,228

21,467

3.77

2,177,613

16,930

3.09

Interest earning cash and deposits at other banks

433,029

4,204

3.85

488,992

5,273

4.28

416,467

4,694

4.48

FHLB stock and other investments

63,961

767

4.76

97,584

1,186

4.82

49,388

1,169

9.42

Total interest earning assets

17,405,483

240,206

5.48

17,365,229

244,700

5.59

16,270,433

226,621

5.54

INTEREST BEARING LIABILITIES:

Deposits:

Money market, interest bearing demand and savings

6,023,423

45,901

3.02

6,045,464

49,458

3.25

5,187,715

50,510

3.87

Time deposits

6,310,036

63,487

3.99

6,359,578

65,967

4.12

5,856,439

71,135

4.83

Total interest bearing deposits

12,333,459

109,388

3.52

12,405,042

115,425

3.69

11,044,154

121,645

4.38

FHLB and FRB borrowings

122,986

1,063

3.43

27,286

273

3.97

113,533

248

0.87

Subordinated debentures and convertible notes

106,835

2,350

8.61

106,485

2,445

8.98

105,482

2,593

9.62

Total interest bearing liabilities

12,563,280

112,801

3.56

12,538,813

118,143

3.74

11,263,169

124,486

4.40

Noninterest bearing demand deposits

3,474,131

3,506,559

3,546,613

Total funding liabilities/cost of funds

16,037,411

2.79

16,045,372

2.92

14,809,782

3.34

Net interest income/net interest spread

127,405

1.92

126,557

1.85

102,135

1.14

Net interest margin

2.90

2.89

2.50

Cost of deposits:

Noninterest bearing demand deposits

3,474,131

—

3,506,559

—

3,546,613

—

Interest bearing deposits

12,333,459

109,388

3.52

12,405,042

115,425

3.69

11,044,154

121,645

4.38

Total deposits

15,807,590

109,388

2.75

15,911,601

115,425

2.88

14,590,767

121,645

3.32

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Twelve Months Ended

12/31/2025

12/31/2024

Interest

Annualized

Interest

Annualized

Average

Income/

Average

Income/

Average

Balance

Expense

Yield/Cost

Balance

Expense

Yield/Cost

INTEREST EARNING ASSETS:

Loans, including loans held for sale

14,267,020

837,226

5.87

13,634,728

837,159

6.14

Investment securities

2,199,219

76,235

3.47

2,213,068

68,549

3.10

Interest earning cash and deposits at other banks

563,560

23,465

4.16

856,768

44,668

5.21

FHLB stock and other investments

86,632

4,238

4.89

48,738

3,604

7.39

Total interest earning assets

17,116,431

941,164

5.50

16,753,302

953,980

5.69

INTEREST BEARING LIABILITIES:

Deposits:

Money market, interest bearing demand and savings

5,951,849

197,861

3.32

5,043,411

200,070

3.97

Time deposits

6,176,559

259,389

4.20

5,954,272

295,378

4.96

Total interest bearing deposits

12,128,408

457,250

3.77

10,997,683

495,448

4.51

FHLB and FRB borrowings

79,945

2,056

2.57

531,869

19,860

3.73

Subordinated debentures and convertible notes

106,324

9,624

8.93

104,989

10,821

10.14

Total interest bearing liabilities

12,314,677

468,930

3.81

11,634,541

526,129

4.52

Noninterest bearing demand deposits

3,447,893

3,679,947

Total funding liabilities/cost of funds

15,762,570

2.97

15,314,488

3.44

Net interest income/net interest spread

472,234

1.69

427,851

1.17

Net interest margin

2.76

2.55

Cost of deposits:

Noninterest bearing demand deposits

3,447,893

—

3,679,947

—

Interest bearing deposits

12,128,408

457,250

3.77

10,997,683

495,448

4.51

Total deposits

15,576,301

457,250

2.94

14,677,630

495,448

3.38

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

Three Months Ended

Twelve Months Ended

AVERAGE BALANCES:

12/31/2025

9/30/2025

% change

12/31/2024

% change

12/31/2025

12/31/2024

% change

Gross loans, including loans held for sale

14,646,767

14,522,425

13,626,965

14,267,020

13,634,728

Investment securities

2,261,726

2,256,228

—

2,177,613

2,199,219

2,213,068

Interest earning cash and deposits at other banks

433,029

488,992

(11

416,467

563,560

856,768

(34

Interest earning assets

17,405,483

17,365,229

—

16,270,433

17,116,431

16,753,302

Goodwill and intangible assets

524,118

525,022

—

467,021

510,404

467,620

Total assets

18,595,446

18,548,982

—

17,228,881

18,244,370

17,746,408

Noninterest bearing demand deposits

3,474,131

3,506,559

3,546,613

3,447,893

3,679,947

Interest bearing deposits

12,333,459

12,405,042

11,044,154

12,128,408

10,997,683

Total deposits

15,807,590

15,911,601

14,590,767

15,576,301

14,677,630

Interest bearing liabilities

12,563,280

12,538,813

—

11,263,169

12,314,677

11,634,541

Stockholders’ equity

2,275,285

2,237,375

2,156,858

2,221,699

2,130,140

LOAN PORTFOLIO:

12/31/2025

9/30/2025

% change

12/31/2024

% change

Loans receivable (held for investment)

14,701,012

14,590,519

13,618,272

Loans held for sale

86,905

33,118

162

14,491

500

Gross loans

14,787,917

14,623,637

13,632,763

CRE LOANS HELD FOR INVESTMENT BY PROPERTY TYPE:

12/31/2025

9/30/2025

% change

12/31/2024

% change

Multi-tenant retail

1,618,715

1,612,673

—

1,619,505

—

Industrial warehouses

1,258,703

1,285,752

1,264,703

—

Multifamily

1,191,145

1,219,701

1,208,494

Gas stations and car washes

1,176,491

1,116,447

1,027,502

Mixed-use facilities

691,821

665,239

771,695

(10

Hotels/motels

821,845

771,089

769,635

Single-tenant retail

658,440

629,269

659,993

—

Office

331,603

330,736

—

394,431

(16

All other

745,745

787,888

811,050

Total CRE loans

8,494,508

8,418,794

8,527,008

—

DEPOSIT COMPOSITION:

12/31/2025

9/30/2025

% change

12/31/2024

% change

Noninterest bearing demand deposits

3,371,759

3,507,659

3,377,950

—

Money market, interest bearing demand, and savings

5,856,373

5,995,488

5,175,735

Time deposits

6,375,011

6,328,115

5,773,804

Total deposits

15,603,143

15,831,262

14,327,489

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

CAPITAL & CAPITAL RATIOS:

12/31/2025

9/30/2025

12/31/2024

Total stockholders’ equity

2,283,268

2,258,960

2,134,505

Total capital

2,171,256

2,128,319

2,150,810

Common equity tier 1 ratio

12.27

12.14

13.06

Tier 1 capital ratio

12.96

12.83

13.79

Total capital ratio

13.99

13.85

14.78

Leverage ratio

11.05

10.86

11.83

Total risk weighted assets

15,520,691

15,371,526

14,549,658

Book value per common share

17.81

17.62

17.68

Tangible common equity (“TCE”) per share (1)

13.71

13.53

13.81

TCE ratio (1)

9.76

9.64

10.05

(1) TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.

ALLOWANCE FOR CREDIT LOSSES CHANGES:

Three Months Ended

Twelve Months Ended

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

12/31/2025

12/31/2024

Balance at beginning of period

152,509

149,505

147,412

150,527

153,270

150,527

158,694

Initial allowance for purchased credit deteriorated (“PCD”) loans and purchased seasoned loans (“PSL”) acquired (2)

—

3,971

—

3,971

—

Provision for losses on loans

7,800

8,100

10,092

5,200

10,100

31,192

18,400

Recoveries

1,694

1,517

2,844

233

704

6,288

4,521

Charge offs

(5,342

)

(6,613

)

(14,814

)

(8,548

)

(13,547

)

(35,317

)

(31,088

)

Balance at end of period

156,661

152,509

149,505

147,412

150,527

156,661

150,527

(2) During the fourth quarter of 2025, the Company adopted ASU 2025-08 effective January 1, 2025, and applied the guidance to the acquisition of Territorial Bancorp which was completed on April 2, 2025. The presentation of prior periods has been adjusted accordingly.

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

Allowance for unfunded loan commitments

3,333

3,933

3,323

2,323

2,723

Three Months Ended

Twelve Months Ended

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

12/31/2025

12/31/2024

Provision for losses on loans

7,800

8,100

10,092

5,200

10,100

31,192

18,400

Provision (credit) for unfunded loan commitments

(600

)

610

1,000

(400

)

(100

)

610

(1,120

)

Provision for credit losses

7,200

8,710

11,092

4,800

10,000

31,802

17,280

Three Months Ended

Twelve Months Ended

NET LOAN CHARGE OFFS (RECOVERIES):

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

12/31/2025

12/31/2024

CRE loans

(1,467

)

(933

)

(843

)

899

156

(2,344

)

545

C&I loans

5,169

5,978

11,829

7,384

12,607

30,360

25,866

Residential mortgage and other loans

(54

)

984

1,013

156

Net loan charge offs

3,648

5,096

11,970

8,315

12,843

29,029

26,567

Net charge offs/average loans (annualized)

0.10

0.14

0.33

0.25

0.38

0.20

0.13

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

NONPERFORMING ASSETS:

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

Loans on nonaccrual status (1)

131,747

110,010

110,739

83,808

90,564

Accruing delinquent loans past due 90 days or more

3,943

2,149

229

Total nonperforming loans

135,690

112,159

112,888

83,906

90,793

Other real estate owned (“OREO”)

365

—

Total nonperforming assets

136,055

112,159

112,888

83,906

90,793

Nonperforming assets/total assets

0.73

0.61

0.49

0.53

Nonperforming loans/loans receivable

0.92

0.77

0.78

0.63

0.67

Nonaccrual loans/loans receivable

0.90

0.75

0.77

0.63

0.67

Allowance for credit losses/loans receivable

1.07

1.05

1.04

1.11

Allowance for credit losses/nonperforming loans

115.46

135.98

132.44

175.69

165.79

(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.6 million, $15.3 million, $15.3 million, $11.8 million, and $12.8 million, at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.

NONACCRUAL LOANS BY TYPE:

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

CRE loans

65,106

54,016

55,368

24,106

23,396

C&I loans

53,136

45,494

46,945

50,544

60,807

Residential mortgage and other loans

13,505

10,500

8,426

9,158

6,361

Total nonaccrual loans

131,747

110,010

110,739

83,808

90,564

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands)

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE:

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

30 - 59 days past due

19,056

15,788

4,909

11,927

8,681

60 - 89 days past due

4,244

5,117

2,843

27,719

5,164

Total accruing delinquent loans 30-89 days past due

23,300

20,905

7,752

39,646

13,845

ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE:

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

CRE loans

12,064

14,872

4,377

4,993

3,205

C&I loans

2,209

3,356

1,084

27,455

1,288

Residential mortgage and other loans

9,027

2,677

2,291

7,198

9,352

Total accruing delinquent loans 30-89 days past due

23,300

20,905

7,752

39,646

13,845

CRITICIZED LOANS:

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

Special mention loans

94,003

131,384

137,313

184,659

179,073

Classified loans

257,113

241,483

277,418

264,064

270,896

Total criticized loans

351,116

372,867

414,731

448,723

449,969

Hope Bancorp, Inc.

Selected Financial Data

Unaudited (dollars in thousands, except share and per share data)

Reconciliation of GAAP financial measures to non-GAAP financial measures

TANGIBLE COMMON EQUITY (“TCE”)

12/31/2025

9/30/2025

12/31/2024

Total stockholders’ equity

2,283,268

2,258,960

2,134,505

Goodwill and core deposit intangible assets, net

(525,938

)

(524,503

)

(466,781

)

TCE

1,757,330

1,734,457

1,667,724

Total assets

18,531,626

18,510,799

17,054,008

Goodwill and core deposit intangible assets, net

(525,938

)

(524,503

)

(466,781

)

Tangible assets

18,005,688

17,986,296

16,587,227

TCE ratio

9.76

9.64

10.05

Common shares outstanding

128,201,655

128,185,271

120,755,658

TCE per share

13.71

13.53

13.81

Three Months Ended

Twelve Months Ended

RETURN ON AVERAGE TANGIBLE COMMON EQUITY (“ROTCE”)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Average stockholders’ equity

2,275,285

2,237,375

2,156,858

2,221,699

2,130,140

Average goodwill and core deposit intangible assets, net

(524,118

)

(525,022

)

(467,021

)

(510,404

)

(467,620

)

Average TCE

1,751,167

1,712,353

1,689,837

1,711,295

1,662,520

Net income (GAAP)

34,466

30,776

24,337

61,588

99,630

ROTCE (annualized)

7.87

7.19

5.76

3.60

5.99

Three Months Ended

Twelve Months Ended

PROVISION FOR CREDIT LOSSES EXCLUDING NOTABLE ITEMS

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Provision for credit losses (1)

7,200

8,710

10,000

31,802

17,280

Notable items:

Merger-related provision for credit losses

—

(553

)

—

Provision for credit losses excluding notable items

7,200

8,710

10,000

31,249

17,280

(1) During the fourth quarter of 2025, the Company adopted ASU 2025-08 effective January 1, 2025, and applied the guidance to the acquisition of Territorial Bancorp which was completed on April 2, 2025. The presentation of prior periods has been adjusted accordingly.

Three Months Ended

Twelve Months Ended

PRE-PROVISION NET REVENUE (“PPNR”)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Net interest income before provision for credit losses

127,405

126,557

102,135

472,234

427,851

Noninterest income

18,351

15,385

15,881

26,468

47,077

Revenue

145,756

141,942

118,016

498,702

474,928

Less: Noninterest expense

99,428

96,861

77,590

389,623

324,684

PPNR

46,328

45,081

40,426

109,079

150,244

Notable items:

Loss on investment portfolio repositioning

—

38,856

—

FDIC special assessment expense (reversal)

(691

)

—

(691

)

691

Merger and restructuring-related (gains) costs, net (including gain on branch sale)

776

958

(423

)

21,534

4,621

Total notable items included in PPNR

958

(423

)

59,699

5,312

PPNR, excluding notable items

46,413

46,039

40,003

168,778

155,556

Three Months Ended

Twelve Months Ended

PROFITABILITY RATIOS EXCLUDING NOTABLE ITEMS

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Net income (GAAP)

34,466

30,776

24,337

61,588

99,630

Notable items:

Merger-related provision for credit losses

—

553

—

Loss on investment portfolio repositioning

—

38,856

—

FDIC special assessment expense (reversal)

(691

)

—

(691

)

691

Merger and restructuring-related (gains) costs, net (including gain on branch sale)

776

958

(423

)

21,534

4,621

Total notable items included in pre-tax income

958

(423

)

60,252

5,312

Tax effect on notable items in pre-tax income

(25

)

(208

)

125

(13,325

)

(1,562

)

Notable impact from California state tax apportionment law change

(49

)

—

4,829

—

Total notable items, net of tax

750

(298

)

51,756

3,750

Net income excluding notable items

34,477

31,526

24,039

113,344

103,380

Diluted common shares

128,769,564

128,593,874

121,401,285

126,774,552

121,108,594

EPS excluding notable items

0.27

0.25

0.20

0.89

0.85

Average assets

18,595,446

18,548,982

17,228,881

18,244,370

17,746,408

ROA excluding notable items (annualized)

0.74

0.68

0.56

0.62

0.58

Average equity

2,275,285

2,237,375

2,156,858

2,221,699

2,130,140

ROE excluding notable items (annualized)

6.06

5.64

4.46

5.10

4.85

Average TCE

1,751,167

1,712,353

1,689,837

1,711,295

1,662,520

ROTCE excluding notable items (annualized)

7.88

7.36

5.69

6.62

6.22

Three Months Ended

Twelve Months Ended

NONINTEREST INCOME EXCLUDING NOTABLE ITEMS

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Noninterest income

18,351

15,385

15,881

26,468

47,077

Notable items:

Loss on investment portfolio repositioning

—

38,856

—

Restructuring-related net gain on branch sale

—

(1,006

)

—

(1,006

)

Noninterest income excluding notable items

18,351

15,385

14,875

65,324

46,071

Three Months Ended

Twelve Months Ended

EFFICIENCY RATIO EXCLUDING NOTABLE ITEMS

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Noninterest expense

99,428

96,861

77,590

389,623

324,684

Notable items:

FDIC special assessment (expense) reversal

691

—

691

(691

)

Merger and restructuring-related costs

(776

)

(958

)

(583

)

(21,534

)

(5,627

)

Noninterest expense excluding notable items

99,343

95,903

77,007

368,780

318,366

Revenue

145,756

141,942

118,016

498,702

474,928

Notable items:

Loss on investment portfolio repositioning

—

38,856

—

Restructuring-related net gain on branch sale

—

(1,006

)

—

(1,006

)

Revenue excluding notable items

145,756

141,942

117,010

537,558

473,922

Efficiency ratio excluding notable items

68.16

67.56

65.81

68.60

67.18

Three Months Ended

Twelve Months Ended

EFFECTIVE TAX RATE EXCLUDING NOTABLE ITEMS

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Income before income taxes

39,128

36,371

30,426

77,277

132,964

Notable items before tax effect

958

(423

)

60,252

5,312

Income before tax excluding notable items

39,213

37,329

30,003

137,529

138,276

GAAP income tax provision

4,662

5,595

6,089

15,689

33,334

Tax effect on notable items in pre-tax income

208

(125

)

13,325

1,562

Notable impact from California state tax apportionment law change

—

(4,829

)

—

Income tax provision excluding notable items

4,736

5,803

5,964

24,185

34,896

Effective tax rate excluding notable items

12.08

15.55

19.88

17.59

25.24