Hope Bancorp | 10-Q: FY2025 Q2 Revenue: USD 239.17 M

Revenue: As of FY2025 Q2, the actual value is USD 239.17 M.

EPS: As of FY2025 Q2, the actual value is USD -0.22, missing the estimate of USD -0.145.

Segment Revenue

• Interest Income: Total interest income for the three months ended June 30, 2025, was $239.17 million, compared to $232.60 million for the same period in 2024. For the six months ended June 30, 2025, total interest income was $456.34 million, compared to $492.28 million in 2024.

Operational Metrics

• Net Interest Income: For the three months ended June 30, 2025, net interest income was $117.53 million, compared to $105.86 million for the same period in 2024. For the six months ended June 30, 2025, net interest income was $218.35 million, compared to $220.91 million in 2024.
• Provision for Credit Losses: The provision for credit losses was $15.00 million for the three months ended June 30, 2025, compared to $1.40 million for the same period in 2024. For the six months ended June 30, 2025, the provision was $19.80 million, compared to $4.00 million in 2024.
• Net (Loss) Income: The net loss for the three months ended June 30, 2025, was - $27.88 million, compared to a net income of $25.27 million for the same period in 2024. For the six months ended June 30, 2025, the net loss was - $6.79 million, compared to a net income of $51.13 million in 2024.

Cash Flow

• Operating Cash Flow: Net cash provided by operating activities for the six months ended June 30, 2025, was $36.05 million, compared to $4.05 million for the same period in 2024.
• Investing Cash Flow: Net cash provided by investing activities for the six months ended June 30, 2025, was $656.02 million, compared to $426.17 million in 2024.
• Financing Cash Flow: Net cash used in financing activities for the six months ended June 30, 2025, was - $460.53 million, compared to - $1,705.14 million in 2024.

Unique Metrics

• Loan Portfolio: Total loans receivable at June 30, 2025, were $14.43 billion, an increase of 6.0% from December 31, 2024.
• Deposits: Total deposits at June 30, 2025, were $15.94 billion, up 11.3% from December 31, 2024.

Future Outlook and Strategy

• Core Business Focus: The company completed the acquisition of Territorial Bancorp Inc. on April 2, 2025, which is expected to enhance its market presence and operational scale. The merger is anticipated to bring synergies and cost savings, although there are risks related to integration and achieving these benefits.
• Non-Core Business: The company sold a portion of its legacy investment securities portfolio in June 2025, realizing losses of $38.9 million, as part of a strategic repositioning to purchase higher-yielding securities.