Regional banking company Hope Bancorp (NASDAQ: HOPE) reported Q3 2026 results topping the market’s revenue expectations, with revenue up 11.5% year on year to $157.5 million. Its non-GAAP profit of $0.29 per share was in line with analysts’ consensus estimates.

For more on Hope Bancorp, read the full research report, available free.

“Revenue growth and positive operating leverage drove strong quarter-over-quarter and year-over-year growth in pre-provision net revenue(1) and net income in the third quarter,” said Kevin S. Kim, Chairman, President and Chief Executive Officer of the Company. “Through our continued focus on improving profitability, many key drivers contributed to this quarter’s results, including loan growth, lower deposit costs, net interest margin expansion, growth in customer fee income and disciplined expense management.”

Revenue growth

Net interest income and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management and trading activities. Hope Bancorp’s revenue grew at a weak 1.7% annualized rate over the last five years, falling short of our benchmarks.

Long-term growth matters most, 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 9.3% over the last two years is above its five-year trend, a positive sign. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Hope Bancorp reported year-on-year revenue growth of 11.5%, and its $157.5 million of revenue exceeded Wall Street’s consensus estimates by 4.3%.

Net interest income made up 90.5% of the company’s total revenue during the last five years, meaning Hope Bancorp depends heavily on its lending activities because non-interest income contributes little.

While banks generate revenue from multiple sources, investors view net interest income as the cornerstone – its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.

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.

This is why tangible book value per share (TBVPS) is the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

Hope Bancorp’s TBVPS was flat over the last five years. A turnaround doesn’t seem to be in sight as its TBVPS also dropped by 2% annually over the last two years ($14.10 to $13.55 per share).

Over the next 12 months, consensus estimates call for Hope Bancorp’s TBVPS to grow by 7% to $14.50, a poor growth rate.

Key takeaways from Hope Bancorp’s Q3 results

Hope Bancorp’s quarter was mixed: revenue beat analysts’ consensus estimates and net interest income narrowly topped Wall Street’s consensus, but EPS only met expectations and tangible book value per share missed slightly. The market seemed to be hoping for more. Shares edged lower 1.9% to $13.86 immediately after the results.

The latest quarter matters, but longer-term business quality and valuation matter more when deciding whether to invest in the stock. For more on those factors, read the full research report here (it’s free).