Hope Bancorp Q1 earnings beat estimates, but stock slips on revenue miss

Published 22/04/2025, 12:52
Hope Bancorp Q1 earnings beat estimates, but stock slips on revenue miss

LOS ANGELES -On Tuesday, Hope Bancorp, Inc. (NASDAQ:HOPE) reported first quarter earnings that beat analyst expectations though revenue came in slightly below estimates.

The company’s stock fell -1.67% in premarket trading following the earnings release.

The holding company of Bank of Hope posted net income of $21.1 million, or $0.17 per diluted share, for the quarter ended March 31, 2025. This exceeded the analyst consensus estimate of $0.13 per share.

However, revenue of $116.5 million narrowly missed the $116.6 million analysts were expecting. Compared to the same quarter last year, revenue decreased 5.5% from $123.3 million.

"We ended the 2025 first quarter with all capital ratios increasing quarter-over-quarter and our tangible common equity ratio up 15 basis points to 10.20% as of March 31, 2025," said Kevin S. Kim, Chairman, President and CEO.

Net interest income before provision for credit losses totaled $100.8 million, down 1% from $102.1 million in the previous quarter. The company attributed this primarily to lower interest rates on floating rate loans and lower average loan balances.

Total (EPA:TTEF) deposits increased 1% to $14.49 billion compared to the prior quarter. The company noted customer deposits grew, offsetting a planned reduction in brokered time deposits.

Hope Bancorp completed its acquisition of Territorial Bancorp (NASDAQ:TBNK) Inc. on April 2, 2025, after the close of the first quarter. This added approximately $1.7 billion in deposits and $1.0 billion in residential mortgage loans.

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