Hope Bancorp stock unchanged as KBW reiterates Market Perform rating

Keefe, Bruyette & Woods reiterated its Market Perform rating and $12.00 price target on Hope Bancorp (NASDAQ:HOPE) Wednesday, following the bank’s announced securities repositioning.

The research firm raised its 2025 and 2026 earnings estimates by 4% and 7% respectively, citing the positive impact of Hope Bancorp’s bond restructuring initiative. According to InvestingPro, the bank has maintained dividend payments for 14 consecutive years, currently offering a 5.59% yield.

KBW noted the bank’s strong capital position with a 13.3% CET1 ratio, describing the securities repositioning as "a logical step to improve profitability." InvestingPro analysis shows the bank maintains a FAIR financial health score, with detailed metrics available in the comprehensive Pro Research Report.

The revised model from KBW now projects Hope Bancorp will achieve a return on tangible common equity (ROTCE) of 8.7% in 2026, representing a 50 basis point improvement.

The $12 price target maintained by KBW represents 0.9 times Hope Bancorp’s year-end 2025 tangible book value per share.

In other recent news, Hope Bancorp reported its first-quarter 2025 earnings, which surpassed analyst expectations with an earnings per share (EPS) of $0.17, compared to the forecasted $0.13. However, revenue slightly missed the mark, coming in at $116.51 million versus the anticipated $116.6 million. The company successfully completed its merger with Territorial Bancorp (NASDAQ:TBNK), contributing to a 1% increase in total deposits, now at $14.5 billion. Hope Bancorp’s net interest income was reported at $101 million, a 1% decrease from the previous quarter. Analysts from firms such as KBW and D.A. Davidson inquired about the company’s outlook, which remains optimistic with expectations for loan growth in the high single digits for 2025. The company also anticipates non-interest income growth in the mid-20s percentage range. Despite macroeconomic challenges, Hope Bancorp’s strategic initiatives and focus on specialized lending continue to bolster its market position. CEO Kevin Kim expressed enthusiasm about the merger, citing enhanced opportunities and increased direct investments by Korean companies in the U.S. as potential growth drivers.

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