Regional banking company Hope Bancorp (NASDAQ: HOPE) missed Wall Street’s revenue expectations in Q1 CY2026, but sales rose 22.1% year on year to $141 million. Its non-GAAP profit of $0.23 per share was in line with analysts’ consensus estimates.
Is now the time to buy Hope Bancorp? Find out by accessing our full research report, it’s free.
Hope Bancorp (HOPE) Q1 CY2026 Highlights:
- Net Interest Income: $124.1 million vs analyst estimates of $126.5 million (23.1% year-on-year growth, 1.9% miss)
- Net Interest Margin: 2.9% vs analyst estimates of 2.9% (in line)
- Revenue: $141 million vs analyst estimates of $143.9 million (22.1% year-on-year growth, 2% miss)
- Efficiency Ratio: 66.9% vs analyst estimates of 69.8% (292.8 basis point beat)
- Adjusted EPS: $0.23 vs analyst estimates of $0.22 (in line)
- Tangible Book Value per Share: $13.73 vs analyst estimates of $13.81 (1.8% year-on-year decline, 0.5% miss)
- Market Capitalization: $1.62 billion
“In the 2026 first quarter, we delivered year-over-year growth in net income, revenue, loans and deposits, driven by organic growth and the strategic benefits of the Territorial Bancorp acquisition. Quarter-over-quarter, we saw pre-provision net revenue growth and improved efficiency, supported by disciplined expense management, a stable net interest margin and continued progress in lowering our cost of deposits. We also returned capital through repurchases of common shares during the quarter,” said Kevin S. Kim, Chairman, President and Chief Executive Officer.
Company Overview
With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ: HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Over the last five years, Hope Bancorp grew its revenue at a weak 1.9% compounded annual growth rate. This was below our standards and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Hope Bancorp’s annualized revenue growth of 1% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Hope Bancorp generated an excellent 22.1% year-on-year revenue growth rate, but its $141 million of revenue fell short of Wall Street’s high expectations.
Net interest income made up 91% of the company’s total revenue during the last five years, meaning Hope Bancorp lives and dies by its lending activities because non-interest income barely moves the needle.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Hope Bancorp’s TBVPS grew at a sluggish 1.5% annual clip over the last five years. TBVPS growth has also decelerated a bit recently as it was flat over the last two years at roughly $13.73 per share.
Over the next 12 months, Consensus estimates call for Hope Bancorp’s TBVPS to grow by 3% to $14.15, lousy growth rate.
Key Takeaways from Hope Bancorp’s Q1 Results
We struggled to find many positives in these results. Its revenue missed and its net interest income fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $12.55 immediately following the results.
Hope Bancorp underperformed this quarter, but does that create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
