HOPE · Hope Bancorp, Inc.

Hope Bancorp’s Q1 2026 results reflect robust year-over-year growth in net income (+40%) and pre-provision net revenue (+43%), underpinned by disciplined expense management, stable net interest margin (2.90%), and meaningful deposit cost reduction—cost of interest-bearing deposits fell 77 basis points year-over-year to 3.37%. The improvement in PPNR and efficiency ratio (67.0%, down from 72.0% YoY) signals positive operating leverage, particularly following the April 2025 Territorial Bancorp acquisition, which contributed to loan and deposit growth. Criticized loans and nonperforming assets both declined meaningfully quarter-over-quarter and year-over-year, with criticized loans falling to 2.22% of total loans and NPAs to 0.65% of total assets—evidence of successful problem loan resolutions. Management highlighted continued progress on lowering funding costs and improving capital deployment, including $6.7 million in share repurchases during the quarter. The announcement of the SMBC MANUBANK Commercial Banking Unit acquisition—a strategic, all-cash deal expected to close in 2H 2026—aims to expand commercial banking capabilities, deepen relationships with middle-market and multinational clients, and grow the core deposit franchise without issuing new shares. The transaction is projected to strengthen core earnings power, optimize capital ratios, and support long-term shareholder value, though it carries integration and regulatory execution risks explicitly noted in forward-looking disclosures. The $0.14 quarterly dividend reaffirms the Company’s commitment to returning capital, yielding 5.01% annualized as of March 31, 2026.