Hope Bancorp Completes SMBC MANUBANK Commercial Unit Deal

The Tip Desk · November 3, 2026 · 3 min read

Third-quarter net income rose 8% to $35.6 million as net interest income reached $135.4 million and the margin hit 3.02%.

Hope Bancorp (HOPE), the holding company of Bank of Hope, reported third-quarter 2026 net income of $35.6 million, or $0.28 a share, up 8% from the second quarter and 16% from a year earlier. Excluding merger-related costs, net income was $37.5 million, or $0.29 a share.

Chairman, President and Chief Executive Officer Kevin S. Kim said revenue growth and positive operating leverage drove the sequential and year-over-year lift in pre-provision net revenue and net income, citing loan growth, lower deposit costs, net interest margin expansion, higher customer fee income and expense discipline.

Net interest income totaled $135.4 million, up $6.4 million, or 5%, from $129.0 million in the second quarter. The company said the sequential increase was driven by higher average earning assets, higher loan yields and lower deposit costs. Net interest margin expanded six basis points to 3.02%, matching the prior quarter’s six-basis-point sequential expansion, which the company attributed to higher earning-asset yields and a favorable funding-mix shift.

The yield on average loans rose five basis points sequentially to 5.78%. The cost of total deposits declined two basis points to 2.58%. Average loans were $14.97 billion, up 1%, or 5% annualized, from the second quarter, with sequential growth concentrated in commercial and industrial and residential mortgage loans. Gross loans at September 30 were $15.12 billion.

Noninterest income increased $3.3 million, or 17%, to $22.1 million. The company said the sequential rise reflected higher customer-related fees, larger SBA loan-sale gains of $4.7 million on $72.2 million sold versus $4.4 million on $67.9 million in the second quarter, and $3.1 million of net gains on sales of other loans, partly offset by a $1.2 million decline in securities-sale gains.

Noninterest expense rose $4.3 million, or 4%, to $102.8 million. The reported efficiency ratio improved to 65.3% from 66.6% as revenue growth outpaced expense growth; excluding notable items the efficiency ratio was 63.6%. Pre-provision net revenue totaled $54.7 million, up 11% quarter-over-quarter, and $57.3 million excluding notable items.

End-of-period deposits were $16.12 billion. Time deposits fell 5% sequentially as the mix shifted toward money market, interest-bearing demand and savings, which rose 10% in aggregate. The time-deposit share of the mix declined to 36.7% from 39.3% at June 30. The company said the planned reduction in time deposits reflected efforts to improve the funding mix and reduce the overall cost of funds.

Net charge-offs were $7.0 million, or 0.19% annualized of average loans, down from $9.0 million, or 0.24%, in the second quarter. The provision for credit losses rose to $8.6 million from $6.8 million, which the company said reflected higher loan balances partly offset by lower net charge-offs. Nonperforming assets declined $4.4 million to $108.5 million, or 0.57% of assets, primarily on lower nonaccrual loans. The allowance for credit losses was $154.3 million, or 1.03% of loans receivable.

The common equity tier 1 capital ratio was 12.25% at September 30. The company continued a 14-cent quarterly common dividend.

On October 1, 2026, Hope completed the acquisition of the Commercial Banking Unit of SMBC MANUBANK. As part of closing, the company received an estimated $307.4 million net cash settlement from SMBC. Loans acquired totaled about $2.20 billion before purchase and other accounting adjustments, with a weighted-average coupon of about 5.69% excluding $0.20 billion of SBA loans later sold for $191.3 million. Deposits acquired totaled about $2.60 billion, with a weighted-average cost of 2.22%. Kim said the deal expands the Southern California footprint, adds specialty deposit banking and a collaboration channel with Sumitomo Mitsui Banking Corporation, and that the strategic benefits will help bolster continued progress in 2027 and beyond.