Regional banking company Hope Bancorp (NASDAQ: HOPE) missed Wall Street’s revenue expectations in Q2 CY2026, but sales rose 9.5% year on year to $145 million. Its non-GAAP profit of $0.27 per share was 4.9% above analysts’ consensus estimates.

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StockStory’s Take

Hope Bancorp’s second quarter results were met with a positive market reaction, as the company delivered revenue and non-GAAP earnings per share above Wall Street expectations. Management attributed quarterly outperformance to growth in commercial and industrial lending, continued improvement in deposit mix, and expanded net interest margin, with CEO Kevin S. Kim highlighting “solid progress during the first half of the year in executing against our key operating priorities.” Non-interest income also benefited from higher gains on sales of Small Business Administration (SBA) loans and increased customer-related fees.

Looking forward, management’s outlook is anchored by anticipated loan and revenue growth, supported by the pending acquisition of the commercial banking unit of SMBC MANUBANK. CEO Kevin S. Kim noted that the transaction is expected to close in the second half of the year, bringing quality loans, attractive deposits, and a strategic partnership with SMBC to broaden multinational client reach. CFO Julianna Balicka emphasized continued focus on improving deposit mix, prudent expense management, and targeted technology and risk management investments, cautioning that progress in reducing reliance on higher-cost deposits will be gradual.

Key Insights from Management’s Remarks

Management credited revenue gains to growth in core lending lines, improved deposit mix, and successful execution of strategic initiatives, including noninterest income growth from SBA loan sales and fee income.

• Commercial and industrial lending growth: The quarter saw increased activity in commercial and industrial loans, driving overall loan balances higher and supporting net interest income expansion. This segment’s momentum was a central driver of the company’s sequential loan growth.

• Deposit mix optimization: Hope Bancorp reported growth in non-maturity deposits and a planned reduction in time deposits, which helped lower the company’s funding costs. CFO Julianna Balicka explained that these changes are intended to gradually reduce reliance on certificates of deposit (CDs), a product still favored by the core customer base.

• SBA loan sale gains: Noninterest income was boosted by higher sales of SBA loans, with net gains benefiting from both increased sales volume and improved sale premiums. Management pointed to healthy conditions in the secondary market for SBA loans, but expects full year performance in this area to be steady rather than accelerating.

• Hawaii deposit growth: The Territorial Savings acquisition in Hawaii contributed to lower-cost deposit growth, with customer retail deposits in that market up 6% year-to-date. Management noted that deposit costs in Hawaii remain lower than on the U.S. mainland, aiding overall cost of funds.

• Pending MANUBANK acquisition: The expected closing of the SMBC MANUBANK commercial banking unit acquisition will add significant loans and deposits to the balance sheet, as well as a new partnership with SMBC to serve Japanese clients operating in the United States. Management views this as a catalyst for specialty deposit verticals and long-term growth.

Drivers of Future Performance

Management’s outlook for the remainder of the year centers on continued loan growth, disciplined expense management, and integration of MANUBANK’s operations.

• Loan growth and pipeline activity: The company expects to maintain robust loan origination, particularly in commercial and industrial segments, with CEO Kevin S. Kim stating that loan pipelines remain active. The inclusion of MANUBANK’s loan portfolio is anticipated to further accelerate end-of-period loan growth to around 20% for the full year.

• Deposit mix improvements and funding costs: Management is prioritizing ongoing shifts toward more non-maturity and lower-cost deposits, though Balicka cautioned that reducing the proportion of time deposits will require time given customer preferences. The lower-cost deposits from the Hawaii franchise and MANUBANK are expected to help contain funding costs.

• Expense discipline and technology investment: The company is balancing prudent expense control with targeted investments in technology, talent, and risk management. While operating expense growth is expected to remain below revenue growth, management acknowledged the competitive environment for deposits could pressure margins if not managed carefully.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace and quality of loan origination, especially as MANUBANK assets are integrated; (2) sustained progress in improving deposit mix, particularly reductions in higher-cost time deposits; and (3) execution of the SMBC partnership to attract new multinational clients. Continued growth in noninterest income and prudent management of funding costs will also be key areas of focus.

Hope Bancorp currently trades at $13.82, up from $13.45 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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