Earnings call transcript: Hope Bancorp posts Q3 2026 revenue beat, EPS miss

Hope Bancorp reported its third-quarter 2026 financial results, with diluted earnings per share of $0.28, slightly below the expected $0.29, while revenue totaled $157.45 million, surpassing the $151.34 million forecast. The stock experienced a decline of 1.17% in pre-market trading, dropping to $13.96 from the previous close of $14.12, positioning the shares near the upper range of their 52-week span.

Investors analyzed the modest earnings miss against the bank's strengthened revenue, margin expansion, and completion of a major acquisition.

Revenue increased by 11% sequentially and 7% year-over-year, driven by loan growth, a wider net interest margin, and higher fee income. Diluted EPS expanded to $0.28 from $0.26 in the prior quarter and $0.24 a year earlier, missing analysts' expectations by $0.01. Notably, net interest margin expanded to 3.02%, rising 6 basis points from the previous quarter. The bank finalized its acquisition of SMBC MANUBANK's commercial banking unit on October 1, bolstering its Southern California presence and deposit base.

Management raised its full-year 2026 outlook, citing robust loan growth and MANUBANK's contribution. Q3 results demonstrated continued momentum in core banking operations, with revenue rising to $157 million, and pre-provision net revenue increasing to $55 million, up 11% and 21% year-over-year, respectively. Diluted EPS grew 7% sequentially and 16% year-over-year, while adjusted EPS excluding merger-related items reached $0.29.

The bank also demonstrated positive operating leverage, with revenue growth outpacing expense growth.