Hope Bancorp Affirms Dividend, Signals Strength in Multicultural Banking

LOS ANGELES, CA – January 27, 2026 – Hope Bancorp, Inc. (NASDAQ: HOPE) reaffirmed its commitment to shareholder returns today, announcing a quarterly cash dividend of $0.14 per common share. The declaration, which follows the release of robust fourth-quarter and full-year 2025 financial results, underscores a period of strategic growth and operational stability for the nation's largest regional bank focused on multicultural communities.

The dividend is payable on or about February 20, 2026, to stockholders of record as of the close of business on February 6, 2026. For investors, the move is less a surprise and more a confirmation of the bank's consistent performance and disciplined financial management.

A Pillar of Stability in Shareholder Returns

The $0.14 quarterly dividend has become a hallmark of Hope Bancorp's shareholder return policy, a figure the company has consistently maintained since the second quarter of 2018. This long-term stability offers a stark contrast to the volatility sometimes seen in the broader financial sector. The dividend provides a current yield of approximately 4.78%, a figure that stands out as higher than the bottom 25% of dividend-paying stocks in the U.S. market, making it an attractive proposition for income-focused investors.

Confidence in the dividend's sustainability is backed by solid financial metrics. While payout ratios can be calculated in various ways, analyst consensus projects that the dividend is well-covered by earnings. Projections for the upcoming year estimate earnings of $1.31 per share, which would place the future payout ratio for the $0.56 annual dividend at a comfortable 42.7%. This perceived safety is further reinforced by a dividend safety rating of 'A+' from Nasdaq, which points to stable forecasted earnings per share growth.

This consistency is a testament to a management strategy that prioritizes predictable returns while simultaneously pursuing ambitious growth, a balancing act that has earned positive marks from market watchers.

Strong Earnings Underpin Dividend Confidence

The dividend announcement did not happen in a vacuum. It came on the heels of an impressive earnings report for the fourth quarter and full year of 2025, which saw the company's stock rise in midday trading. Hope Bancorp reported a net income of $34 million for the quarter, a remarkable 42% increase year-over-year and a 12% jump from the previous quarter.

This strong profitability was fueled by several positive trends. Net interest income rose to $127 million, supported by a net interest margin (NIM) that edged up to 2.90%. This performance is particularly noteworthy in a fluctuating interest rate environment, reflecting the bank's successful efforts to manage funding costs and reposition its investment portfolio. Total assets stood firm at $18.53 billion at the close of 2025.

Growth was also evident on the lending and deposit fronts. Gross loans grew to $14.8 billion, an 8% increase year-over-year, while the deposit base expanded to $15.6 billion. Much of this expansion is directly attributable to the successful integration of Territorial Savings Bank, which has significantly broadened the company's operational footprint.

The Multicultural Growth Engine and Territorial Integration

Beyond the headline numbers, the story of Hope Bancorp is one of strategic differentiation. As the holding company for Bank of Hope, it has carved out a unique and dominant position as the only regional Korean American bank in the U.S. The acquisition of Hawaii-based Territorial Savings in April 2025 has cemented its status as the largest regional bank serving diverse multicultural customers across the continental U.S. and the Hawaiian Islands.

The integration has proven to be a powerful growth driver. It added 29 branches in Hawaii to the bank's existing network of 45 full-service branches across eight states. Management has reported a smooth transition with positive customer reception and no significant deposit fluctuations in its new Hawaiian market. This successful expansion contributed significantly to the 9% year-over-year growth in the company's deposit base.

Strategically, the acquisition also allowed Hope Bancorp to improve its funding mix, growing its core customer deposits while reducing its reliance on more volatile brokered deposits, which now constitute less than 7% of total deposits. While the inclusion of Territorial's operations led to a predictable rise in noninterest expenses, the company's efficiency ratio remained stable at 68%, indicating that revenue growth is effectively absorbing the costs of expansion.

Navigating the Regional Banking Landscape

Hope Bancorp's performance provides a compelling case study in navigating the complex modern regional banking environment. The company has demonstrated a proactive approach to strengthening its balance sheet and mitigating risk. A notable achievement is the significant improvement in credit quality, with criticized loans decreasing by 22% year-over-year to $351 million, bringing the criticized loan ratio down to 2.39%.

Further signaling its financial health and confidence in its valuation, the Board of Directors recently reinstated its share repurchase authorization, with $35 million available for buybacks. This move provides another avenue for returning capital to shareholders and reflects a belief that the company's stock remains a sound investment.

Looking ahead, management has set ambitious medium-term targets, including achieving a Return on Average Assets (ROAA) of approximately 1.2% and driving the efficiency ratio down into the mid-50s. These goals, combined with a strategy of high single-digit loan growth and double-digit revenue growth, paint a picture of a bank that is not content to rest on its laurels but is actively positioning itself for sustained, profitable expansion in its specialized markets.