- Hope Bancorp (HOPE, Financial) reported Q1 2025 earnings of $0.17 per diluted share, or $0.19 excluding notable items, compared to $0.20 in Q4 2024.
- Total deposits grew by 1% to $14.49 billion, with a 5% rise in money market deposits leading the increase.
- Hope Bancorp completed its acquisition of Territorial Bancorp, bolstering its balance sheet with $1.7 billion in deposits and $1 billion in mortgage loans.
Hope Bancorp, Inc. (HOPE) announced its financial results for the first quarter of 2025, showcasing a net income of $21.1 million, translating to $0.17 per diluted share. Excluding notable items, the bank reported a net income of $22.9 million, or $0.19 per diluted share. This is a slight decrease from the previous quarter's earnings of $0.20 per share.
During the quarter, Hope Bancorp completed its acquisition of Honolulu-based Territorial Bancorp, significantly strengthening its position in the regional banking sector. The acquisition, completed on April 2, 2025, added approximately $1.7 billion in core, low-cost deposits and $1 billion in residential mortgage loans to Hope Bancorp's financial portfolio. The merger was finalized with the issuance of 6,976,754 shares of Hope Bancorp common stock, valued at $73.3 million.
Hope Bancorp noted a 2% decline in total loans receivable, reaching $13.34 billion by the end of Q1 2025. This was marked by a 7% increase in residential mortgage loans, offset by a 5% decrease in commercial and industrial loans, and a 2% decline in commercial real estate loans.
Credit quality improved as nonperforming assets dropped by 8% quarter-over-quarter to $83.9 million, representing 0.49% of total assets. The bank also reported net charge-offs of $8.3 million, equating to an annualized 0.25% of average loans.
Hope Bancorp's capital ratios remained robust, with all regulatory capital measures exceeding the thresholds required to be considered "well-capitalized." The company's tangible common equity (TCE) ratio improved to 10.20% from 10.05% in the previous quarter.
