Hope Bancorp, Inc. (HOPE): Business Model Canvas [Dec-2025 Updated]

You're digging into Hope Bancorp, Inc.'s strategy following the April 2025 Territorial acquisition, and honestly, the numbers tell a compelling story of a bank reshaping itself. With total assets hitting $18.55 billion as of June 30, 2025, and a solid Net Interest Margin of 2.89% in Q3 2025 fueled by $15.8 billion in deposits, their model is clearly focused on integrating new scale while doubling down on their core value proposition: specialized, relationship-based banking for the Korean American community and commercial clients. This canvas breaks down exactly how they turn that specialized focus and their 46-branch footprint into revenue streams like that $126.6 million in Net Interest Income last quarter; check out the nine building blocks below to see the whole engine.

Hope Bancorp, Inc. (HOPE) - Canvas Business Model: Key Partnerships

Hope Bancorp, Inc. relies on several external entities to maintain its operational structure, regulatory standing, and growth trajectory, especially following significant corporate actions like the Territorial Bancorp Inc. merger.

The relationship with Federal Reserve and FDIC is foundational for regulatory compliance and deposit insurance stability. Bank of Hope is a California-chartered bank, and its deposits receive FDIC insurance to the extent provided by law. Territorial Savings Bank, now a division of Bank of Hope, was previously noted as the fifth largest deposit-holder in Hawaii according to the Federal Deposit Insurance Corp.'s latest annual deposit market report before the combination. This partnership ensures the integrity of the combined entity's deposit base across its expanded footprint.

The integration of Territorial Bancorp Inc., which closed on April 2, 2025, is a key recent partnership event that reshaped the firm's structure. This 100% stock-for-stock exchange saw Territorial shareholders receive 0.8048 shares of Hope Bancorp common stock for each share they owned. The merger immediately expanded the operational footprint, adding 29 branches in Hawaii to Bank of Hope's existing 46 full-service branches across the continental US, resulting in a network of over 70 locations (specifically 75 branches total as of September 30, 2025). Hope Bancorp, Inc.'s total assets grew to $18.51 billion as of September 30, 2025, up from $17.05 billion at the end of 2024. The expected annual synergy realization from this combination was stated at $10.5 million.

Here's a quick look at the scale change from the Territorial Bancorp Inc. merger:

Hope Bancorp, Inc. engages with Correspondent banks to facilitate interbank services and manage liquidity needs across its multi-state and now Hawaii operations. While specific counterparty names or liquidity amounts aren't always public, this network is vital for non-local clearing and settlement.

The firm also partners with external providers for specialized functions, which is common for regional banks seeking to enhance service offerings without massive internal capital expenditure. These include:

• Financial technology (FinTech) vendors for digital banking platforms and core processing upgrades.
• Third-party loan servicers for specialized portfolio management, particularly in areas like SBA or residential mortgage servicing where expertise is concentrated.

The company's recent dividend declaration on October 28, 2025, was $0.14 per share quarterly, reflecting confidence in the combined entity's ongoing financial stability supported by these partnerships.

Finance: draft 13-week cash view by Friday.

Hope Bancorp, Inc. (HOPE) - Canvas Business Model: Key Activities

You're looking at the core engine of Hope Bancorp, Inc. as of late 2025, focusing on the actions that drive their value creation based on their Q3 2025 performance data.

Commercial and Commercial Real Estate (CRE) loan origination activity is central, supported by management targeting high single-digit loan growth for the full year 2025. This focus on origination is part of a broader strategy to grow the loan book, which saw gross loans increase by 1.2% quarter-over-quarter as of September 30, 2025.

Deposit gathering and cost optimization is a critical activity, directly impacting funding costs. As of September 30, 2025, total deposits for Hope Bancorp, Inc. were $15.8 billion. The bank is actively managing its mix, as evidenced by noninterest-bearing deposits totaling $3.5 billion at that same date, which was up 1% quarter-over-quarter. Management noted that the cost of average interest-bearing deposits declined by eight basis points quarter-over-quarter.

Managing the balance sheet involves overseeing the $14.6 billion gross loan portfolio as of September 30, 2025. This portfolio size reflects the growth momentum across all major loan segments. The bank is focused on maintaining asset quality while growing this asset base.

The Integration of Territorial Savings division in Hawaii is a key ongoing activity following the effective close of the merger on April 2, 2025. This integration drives expense management efforts, with management expecting noninterest expenses to be up approximately 15% in 2025 due to the addition of Territorial's operations to the run rate and investment in talent. The systems conversion for the Territorial division is targeted for the end of next year (2026).

Asset-liability management is key to profitability, specifically targeting the Net Interest Margin (NIM). Hope Bancorp, Inc. successfully maintained a reported NIM of 2.89% for Q3 2025, which was an expansion of 20 basis points from the prior quarter. This performance was supported by specific component yields and costs:

The bank's operational focus also includes managing credit quality, which directly impacts the provision for credit losses. Criticized loans fell 10% quarter-over-quarter to $372.9 million, representing 2.56% of total loans as of Q3 2025.

The execution of these activities is reflected in several operational metrics:

• Net Interest Income (NII) rose 8% Quarter-over-Quarter (QoQ) to $127 million in Q3 2025.
• Net Charge-Offs (NCOs) reduced 57% QoQ to $5 million in Q3 2025.
• The efficiency ratio (ex-notables) improved to 67.5% in Q3 2025.
• Management reaffirmed expectations for approximately 10% NII growth for the full year 2025.

Finance: draft 13-week cash view by Friday.

Hope Bancorp, Inc. (HOPE) - Canvas Business Model: Key Resources

You're looking at the core assets Hope Bancorp, Inc. relies on to execute its business strategy, especially after the Territorial acquisition closed in April 2025. These aren't just line items; they are the foundation of their lending and deposit-gathering power.

Balance Sheet Scale and Capital Strength

The sheer size of the balance sheet provides the capacity for significant lending and investment activities. As of June 30, 2025, Hope Bancorp, Inc. reported $18.55 billion in total assets. This scale is underpinned by capital levels that give you confidence in their stability.

Hope Bancorp, Inc.'s capital position remains strong, exceeding the general regulatory requirements for a "well-capitalized" institution. Here's a snapshot of the key ratios as of the second quarter close:

Honestly, the total capital ratio of 13.76% is a healthy cushion, especially when the minimum for well-capitalized status is cited around 10.50%. That excess capital, reported at around $495 million, gives them flexibility.

Deposit Base: The Low-Cost Engine

The acquisition of Territorial Bancorp was a major move to secure funding at a better price. Total deposits reached $15.94 billion at June 30, 2025, a 10% increase quarter-over-quarter, directly reflecting the Territorial addition. Territorial brought in $1.7 billion in deposits with a weighted average cost of just 1.96% at the time of the close.

This infusion immediately lowered the overall cost of funds. The cost of average interest-bearing deposits fell by 37 basis points to 3.77% in the second quarter. More broadly, the overall cost of total deposits dropped 22 basis points to 2.96%. The bank is actively managing its funding mix, too; brokered deposits are now down to 5% of the total, compared to 9% a year prior.

You can see the diversification in the deposit structure as of June 30, 2025:

• Commercial deposits: 46%
• Consumer deposits: 47%
• Territorial low-cost deposits: Account for 10% of total deposits

Human Capital and Specialized Expertise

The physical footprint and the people running the business are critical resources. Hope Bancorp, Inc. operates a significant network to serve its multicultural customer base across the country.

The branch network as of the second quarter of 2025 included:

• 46 full-service branches under the Bank of Hope banner across multiple states.
• 29 branches in Hawaii operating under the Territorial Savings banner.

Beyond the branches, the specialized teams are key to generating higher-yield business. Hope Bancorp, Inc. explicitly states it provides services including SBA lending and international trade financing. Furthermore, management is focused on strengthening pipelines in specialized verticals, supported by recent hiring efforts in areas like:

• Healthcare lending
• Project finance
• Structured finance

Hope Bancorp, Inc. (HOPE) - Canvas Business Model: Value Propositions

Hope Bancorp, Inc. provides distinct value through its specialized market focus and comprehensive product suite, positioning itself as a key financial partner for its defined customer segments.

Specialized expertise for the Korean American community

Hope Bancorp, Inc. is the holding company of Bank of Hope, which is recognized as the only regional Korean American bank in the United States as of June 30, 2025. This specialization is a core value proposition, supported by its operational footprint, which includes a representative office in Seoul, South Korea. The company's total assets reached $18.55 billion as of June 30, 2025.

Full suite of commercial and consumer banking products

The Bank of Hope offers a full suite of commercial, corporate, and consumer banking products and services designed to meet diverse financial needs. This offering is a key differentiator in its regional market focus.

• Commercial and commercial real estate lending
• SBA lending
• Residential mortgage and other consumer lending
• Deposit and fee-based products and services

International trade finance and foreign currency exchange solutions

For businesses engaged in cross-border activities, Hope Bancorp, Inc. delivers specialized financial tools. These services support the operational needs of its multicultural customer base.

• International trade financing solutions
• Foreign currency exchange solutions
• Interest rate derivative products
• Treasury management services

Diversified loan mix, including a growing residential mortgage portfolio

The loan portfolio demonstrates a strategic shift toward diversification, notably through organic growth and the Territorial Savings Bank acquisition completed on April 2, 2025. Gross loans, including held for sale, totaled $14.6 billion at September 30, 2025. The residential mortgage segment has seen significant expansion.

Here's a quick look at the loan mix shift as of mid-2025:

The residential mortgage portfolio saw an increase of 96% from March 31, 2025. The Territorial acquisition contributed approximately $1 billion of high-quality residential mortgage loans. In the third quarter of 2025, loan growth was observed across C&I, commercial real estate, and residential mortgage segments.

Personalized, relationship-based service as a regional bank

Hope Bancorp, Inc. positions itself as the largest regional bank catering to multicultural customers across the continental United States and Hawaii. This service model is supported by an extensive physical presence.

The branch network as of mid-2025 includes:

• 46 full-service branches under the Bank of Hope banner.
• 29 branches in Hawaii under the Territorial Savings banner.

The acquisition of Territorial Savings Bank brought in a stable, low-cost deposit base, which helped reduce the cost of average interest-bearing deposits by 37 basis points to 3.77%. The overall cost of total deposits dropped 22 basis points to 2.96%. The bank reported a net interest margin expansion of 20 basis points to 2.89% for the third quarter of 2025.

Finance: draft 13-week cash view by Friday.

Hope Bancorp, Inc. (HOPE) - Canvas Business Model: Customer Relationships

Hope Bancorp, Inc. focuses on deepening primary banking relationships as a core strategy to strengthen its deposit franchise. This focus is evident in the management's stated goal of ongoing optimization of the deposit mix and disciplined pricing. As of September 30, 2025, the total deposits stood at $15.8 billion. The composition of this base reflects a strategic shift away from more volatile funding sources.

The acquisition of Territorial Savings Bank, effective April 2, 2025, significantly bolstered the customer base, positioning Hope Bancorp, Inc. as the largest regional bank catering to multicultural customers across the continental United States and Hawaii. This expansion directly supports the high-touch, personalized service model tailored for this diverse customer segment.

Community-focused engagement is supported by a substantial physical footprint. As of late 2025, Bank of Hope operates 45 full-service branches under its banner, complemented by 29 branches in Hawaii operating under the Territorial Savings banner. This physical presence is key to maintaining local market ties.

For commercial clients, the strategy involves dedicated support, evidenced by continued investments in talent, which included hiring an experienced commercial banking team to drive business development. This dedicated relationship management approach is designed to foster long-term, high-value commercial banking relationships.

Self-service options are being enhanced through a focus on technology integration, mirroring industry trends that see emphasis on AI-driven customer personalization and digital banking platforms. While specific adoption rates for Hope Bancorp, Inc. are not public, the general trend shows that a significant majority of consumers, 77 percent, prefer to manage their bank accounts through a mobile app or a computer.

The commitment to long-term primary banking relationships is directly tied to deposit stability and cost management. The company is actively working to grow customer deposits, which partially offset a planned reduction in broker deposits.

Here's a look at the key deposit metrics supporting this customer relationship strategy as of the end of the third quarter of 2025:

The execution of the customer relationship strategy involves several key operational focuses:

• Hiring experienced bankers to enhance corporate and commercial banking capabilities.
• Deepening client relationships to expand market presence.
• Strengthening the deposit franchise through ongoing optimization.
• Investing in talent to enhance production capabilities.
• Providing a full suite of services including treasury management and international trade financing.

The bank's structure now includes 74 total full-service branches across its operating states (45 Bank of Hope + 29 Territorial Savings in Hawaii). The strategic focus is on driving business development through these enhanced relationship teams.

Hope Bancorp, Inc. (HOPE) - Canvas Business Model: Channels

The physical distribution network for Hope Bancorp, Inc. is anchored by its dual-brand branch structure following the April 2, 2025, acquisition of Territorial Bancorp Inc.

The Bank of Hope banner operates its primary network across the continental United States. As of September 30, 2025, this network consisted of 45 full-service branches.

The geographic footprint for the Bank of Hope branches covers eight states:

• California
• New York
• New Jersey
• Washington
• Texas
• Illinois
• Alabama
• Georgia

The Territorial Savings division maintains a strong regional presence in Hawaii. As of the merger completion, this division operates 29 convenient branches located on the islands of Oahu, Maui, Kauai, and Hawaii.

The combined physical network, as reported around the time of the Q3 2025 results, suggests a total branch count of 74 locations (45 Bank of Hope + 29 Territorial Savings), contributing to the bank becoming the largest regional bank catering to multicultural customers across the continental United States and Hawaii.

Hope Bancorp, Inc. supplements its branch network with specialized production offices focused on specific lending segments across the United States.

Digital channels are a key component of customer interaction, supporting the bank, which reported total assets of $18.51 billion as of September 30, 2025.

• Mobile app usage is a primary method for managing bank accounts, aligning with the industry trend where a significant majority of consumers prefer digital management.
• Online banking services are provided for both consumer and business clients.

For international business development, Hope Bancorp, Inc. maintains a physical presence outside the US.

• A representative office is located in Seoul, South Korea.

Finance: draft 13-week cash view by Friday.

Hope Bancorp, Inc. (HOPE) - Canvas Business Model: Customer Segments

Hope Bancorp, Inc. serves a diverse base, positioning itself as the largest regional bank catering to multicultural customers across the continental United States and Hawaii following the April 2, 2025, acquisition of Territorial Bancorp Inc.. As of September 30, 2025, the company managed total assets of $18.51 billion.

The core customer base is deeply rooted in the Korean American community, as Bank of Hope is described as the only regional Korean American bank in the United States.

For commercial lending, Small-to-mid-sized businesses (SMBs) and commercial enterprises are key. The loan portfolio, totaling $14.6 billion in gross loans as of September 30, 2025, shows significant exposure to commercial sectors. A notable segment is Commercial Real Estate (CRE) investors and developers; as of the December 31, 2024, filing, approximately 63% of the loan portfolio was secured by various types of commercial real estate loans.

The customer base for individuals and families is expanding geographically and through product diversification. Residential mortgage borrowers, especially in Hawaii, are now a more significant part of the mix following the Territorial acquisition. Residential mortgage and other loans grew to represent 16% of the Company's loan mix at June 30, 2025, up from 9% at March 31, 2025.

The overall footprint supports these segments:

• Bank of Hope banner branches: 45 full-service branches in California, New York, New Jersey, Washington, Texas, Illinois, Alabama, and Georgia.
• Territorial Savings banner branches (Hawaii): 29 branches in Hawaii.

The composition of the loan portfolio as of mid-2025 reflects the focus on these segments. You can see the shift in the residential mortgage category:

Core funding from these customer segments is substantial. Total deposits reached $15.8 billion as of September 30, 2025. Noninterest-bearing deposits, often indicative of strong commercial and core customer relationships, totaled $3.5 billion at that same date.

Hope Bancorp, Inc. (HOPE) - Canvas Business Model: Cost Structure

You're looking at the expense side of Hope Bancorp, Inc.'s operations as of late 2025, post-Territorial Bancorp acquisition. The cost structure is heavily influenced by funding costs and the integration of new operations.

Interest Expense on deposits and borrowings, a major driver

The cost of funding remains central to the cost structure. While Net Interest Income (NII) was reported at $118 million for the second quarter of 2025, the underlying cost of deposits is a key variable. The average cost of interest-bearing deposits saw a meaningful reduction, dropping 37 basis points quarter-over-quarter in Q2 2025, settling at 3.77%, down from 4.14% in Q1 2025. By the third quarter of 2025, NII had climbed to $127 million, reflecting improved yields and lower deposit costs.

Personnel costs due to investments in experienced talent

Personnel costs are embedded within the overall non-interest expense. Hope Bancorp, Inc. has been actively investing in talent to enhance production capabilities, which contributes to the overall cost base. The full-year 2025 outlook anticipates noninterest expenses, excluding notable items, to be up approximately 15%, reflecting the addition of Territorial's operations and these investments in personnel.

Non-interest expense (ex-notables) of $92 million in Q2 2025

The aggregate non-interest expense, excluding one-time merger-related costs, provides a clearer view of recurring operational spending. This figure stood at $92 million for the second quarter of 2025, an increase from $81 million in the first quarter of 2025, largely due to the integration of Territorial's operations. The most recent reported figure for Q3 2025 was $96 million (excluding notable items).

Here's a quick look at the trend in core operating costs:

Occupancy and equipment costs for the 46-branch network

The physical footprint contributes to fixed costs. Hope Bancorp, Inc. operates the Bank of Hope network, which includes 46 full-service branches across states like California, New York, and Texas, in addition to the 29 Territorial Savings branches in Hawaii, following the April 2, 2025 acquisition. Specific dollar amounts for occupancy and equipment are aggregated within the total non-interest expense.

Technology and data processing expenses for digital services

Costs associated with maintaining and enhancing digital services are a component of the overall operating expenses. The company has a policy in place to vet any new artificial intelligence technology before deployment, which suggests a controlled approach to technology spending.

The main cost components contributing to the non-interest expense base include:

• Personnel costs from experienced talent additions.
• Occupancy and equipment for the combined 75+ branch network.
• Technology and data processing for digital platforms.
• General administrative and operational overhead.

Hope Bancorp, Inc. (HOPE) - Canvas Business Model: Revenue Streams

You're looking at how Hope Bancorp, Inc. (HOPE) brings in the money, which, for a bank like this, really boils down to interest spreads and fees for services. The core engine is definitely the Net Interest Income (NII).

For the third quarter of 2025, Hope Bancorp, Inc. reported a Net Interest Income (NII) of $126.64 million, which was up 8% from the prior quarter and 21% compared to the third quarter of 2024. This strong performance reflects loan growth and better yields on their earning assets, even as they managed their funding costs. Management is guiding for approximately 10% NII growth for the full year 2025.

The primary driver of NII is the loan portfolio. While the total dollar amount of Interest earned on loans isn't explicitly broken out separately from interest expense to get the NII, the total balance of Interest earned on loans, which is represented by the total gross loans on the books, was $14.6 billion as of September 30, 2025.

Here's a quick look at the key income drivers for Q3 2025:

Beyond the core lending income, Non-interest income from service charges and fees is the second pillar. Management has a positive outlook here, expecting non-interest income growth of approximately 30% for the full year 2025, excluding certain items from the second quarter. This growth is expected to come from various business lines.

Specifically regarding specialized services, the company is seeing momentum in areas like Fee income from treasury management and foreign exchange services. While specific dollar amounts for these services in Q3 2025 aren't itemized, the overall fee income growth expectation for 2025 is strong, with the CFO having increased expectations to the high 20s percentage range earlier in the year, citing year-to-date momentum. However, the Q3 results did note lower SBA gains compared to prior periods.

The final profitability metric that ties these streams together is the bottom line. Hope Bancorp, Inc. reported a Net income of $30.8 million for the third quarter of 2025. This represented a 28% increase from the net income reported in the same period last year.

To summarize the expected growth in these non-interest revenue components for 2025:

• Non-interest income growth target: approximately 30%.
• Fee income growth expectation: high 20s percentage range.
• Focus areas for fee income: treasury management and foreign exchange.