Hope Bancorp Q3 net income rises 16% year over year

Overview

• US regional bank's Q3 net income grew 16% yr/yr and 8% sequentially

• Company cites revenue growth, loan growth, and lower deposit costs as key drivers

• Company completed acquisition of SMBC MANUBANK's commercial banking unit in October

Outlook

• Company did not provide specific financial guidance for the upcoming quarter or full year in its press release

Result Drivers

• NET INTEREST INCOME - Co said growth in average earning assets, higher loan yields and lower deposit costs drove net interest income

• NONINTEREST INCOME - Co said growth in customer fees and gains on SBA loan sales boosted noninterest income

• LOAN GROWTH - Co said increases in commercial and industrial and residential mortgage loans drove loan growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Hope Bancorp Inc is $15.50, about 9.8% above its October 27 closing price of $14.12

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 27 - NBT Bancorp Q3 profit rises on loan growth, higher net interest income

• Oct 27 - UMB Financial Q3 profit rises on record loans

• Oct 27 - First Community Bankshares Q3 net income rises 26%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)