Hope Bancorp Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2026
LOS ANGELES--( BUSINESS WIRE)--Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its third quarter and nine months ended September 30, 2026.
For the third quarter of 2026, the Company reported net income of $35.6 million, or $0.28 per diluted common share, up 8% from net income of $33.0 million, or $0.26 per diluted common share, for the second quarter of 2026, and up 16% from net income of $30.8 million, or $0.24 per diluted common share, for the third quarter of 2025. Excluding notable items, which consisted of merger-related costs, third quarter 2026 net income (1) was $37.5 million, or $0.29 per diluted common share (1).
“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.”
Kim continued, “On October 1, 2026, we completed the acquisition of the Commercial Banking Unit of SMBC MANUBANK (“MANUBANK”), an important milestone in the continued evolution of Bank of Hope. The acquisition advances our core strategic priority to create long-term stockholder value by expanding our presence in Southern California, enhancing our deposit base, adding specialty deposit banking capabilities and broadening our ability to serve multinational customers with U.S. operations. Our Collaboration and Partnership Agreement with Sumitomo Mitsui Banking Corporation (“SMBC”), which became effective upon closing, opened a meaningful channel to connect customers across markets. We warmly welcome the MANUBANK team and customers as we begin our next chapter together.”
“We remain focused on sustainable and profitable earnings growth across a range of operating environments, the results of which are demonstrated in our year-to-date earnings momentum. The strategic benefits of the MANUBANK acquisition will help bolster continued progress in 2027 and beyond,” concluded Kim. “We sincerely thank all our colleagues for their dedication and contributions to the ongoing integration process and the success of Bank of Hope.”
(1)
Net income excluding notable items, earnings per diluted common share excluding notable items and pre-provision net revenue are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12. Notable items in the second quarter of 2026 included merger-related costs; notable items for the prior periods are detailed on Table Pages 10 to 12.
Operating Results for the Third Quarter of 2026
Net interest income and net interest margin. Net interest income totaled $135.4 million for the third quarter of 2026, up $6.4 million, or 5%, compared with $129.0 million for the second quarter of 2026, and up $8.8 million, or 7%, from the third quarter of 2025. Net interest margin for the third quarter of 2026 was 3.02%, up six basis points from 2.96% for the second quarter of 2026, and up 13 basis points from 2.89% for the year-ago quarter.
The sequential quarter increase in net interest income was primarily driven by growth in average earning asset balances, higher loan yields and lower deposit costs. The quarter-over-quarter net interest margin expansion was primarily attributable to higher earning asset yields and a favorable funding mix shift. The yield on average loans increased five basis points sequentially to 5.78% for the third quarter of 2026, while the cost of total deposits declined by two basis points to 2.58%.
Noninterest income. For the third quarter of 2026, noninterest income totaled $22.1 million, up $3.3 million, or 17%, compared with $18.9 million for the second quarter of 2026, and up $6.7 million, or 44%, compared with noninterest income of $15.4 million for the third quarter of 2025. The sequential quarter increase in noninterest income reflects growth in customer-related income and fees and higher net gains on sales of Small Business Administration (“SBA”) loans, as well as $3.1 million in net gain on sales of other loans partially offset by a $1.2 million decrease in net gains on sales of securities available for sale. The Company sold $72.2 million of SBA loans in the third quarter of 2026 for a net gain of $4.7 million, compared with $67.9 million of SBA loans sold for a net gain of $4.4 million in the second quarter of 2026.
Noninterest expense. Noninterest expense for the third quarter of 2026 was $102.8 million, up $4.3 million, or 4%, from $98.5 million for the second quarter of 2026, and up $5.9 million, or 6%, from $96.9 million for the third quarter of 2025. Noninterest expense excluding notable items (2) for the third quarter of 2026 was $100.1 million.
In the third quarter of 2026, the reported efficiency ratio improved to 65.3%, down from 66.6% in the prior quarter and 68.2% in the year-ago quarter, as revenue growth outpaced noninterest expense growth. This positive operating leverage also drove growth in pre-provision net revenue (2), which totaled $54.7 million, up 11% quarter-over-quarter and 21% year-over-year. Excluding notable items (2), the efficiency ratio for the third quarter of 2026 was 63.6%, and pre-provision net revenue (2) was $57.3 million.
Income tax provision and tax rate. For the third quarter of 2026, the Company recorded an income tax provision of $10.5 million, compared with an income tax provision of $9.6 million for the second quarter of 2026 and $5.6 million for the third quarter of 2025. The year-to-date effective tax rate for the first nine months of 2026 was 22.5%.
Balance Sheet Summary
Total assets. At September 30, 2026, total assets were $19.19 billion, compared with $18.99 billion at June 30, 2026, and $18.51 billion at September 30, 2025.
Loans. At September 30, 2026, gross loans totaled $15.12 billion, up 1% from $15.03 billion at June 30, 2026, and up 3% from $14.62 billion at September 30, 2025. Year-to-date, gross loans were up 2%. Third quarter 2026 average loans were $14.97 billion, up 1%, equivalent to 5% annualized, from $14.79 billion for the second quarter of 2026, and up 3% from $14.52 billion for the third quarter of 2025. Quarter-over-quarter, loan growth was primarily driven by increases in commercial and industrial and residential mortgage loans. Year-over-year, all of our major loan portfolios of commercial and industrial, residential mortgage and commercial real estate grew.
(2)
Noninterest expense excluding notable items, efficiency ratio excluding notable items, pre-provision net revenue and pre-provision net revenue excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12.
The following table sets forth the loan portfolio composition at September 30, 2026, June 30, 2026, and September 30, 2025:
(dollars in thousands) (unaudited)
9/30/2026
6/30/2026
9/30/2025
Balance
Percentage
Balance
Percentage
Balance
Percentage
Commercial real estate (“CRE”) loans
$
8,501,707
56.3
%
$
8,583,967
57.1
%
$
8,434,919
57.7
%
Commercial and industrial (“C&I”) loans
4,009,821
26.5
%
3,896,116
25.9
%
3,752,111
25.6
%
Residential mortgage and other loans
2,606,317
17.2
%
2,554,104
17.0
%
2,436,607
16.7
%
Gross loans (including held for sale)
$
15,117,845
100.0
%
$
15,034,187
100.0
%
$
14,623,637
100.0
%
Deposits. At September 30, 2026, deposits totaled $16.12 billion, up 2% from $15.88 billion at June 30, 2026, and up 2% compared with $15.83 billion at September 30, 2025. On a sequential quarter basis, end-of-period noninterest bearing demand deposits declined 1%; money market, interest bearing demand and savings deposits increased 10% in aggregate, and time deposits decreased 5%. On an average basis, noninterest bearing demand deposits increased 4% quarter-over-quarter. The planned reduction in time deposits reflected our ongoing efforts to improve the funding mix and reduce the overall cost of funds. The share of time deposits in our deposit mix decreased to 36.7% at September 30, 2026, down from 39.9% a year ago.
The following table sets forth the deposit composition at September 30, 2026, June 30, 2026, and September 30, 2025:
(dollars in thousands) (unaudited)
9/30/2026
6/30/2026
9/30/2025
Balance
Percentage
Balance
Percentage
Balance
Percentage
Noninterest bearing demand deposits
$
3,501,963
21.7
%
$
3,548,452
22.4
%
$
3,507,659
22.2
%
Money market, interest bearing demand, and savings deposits
6,708,100
41.6
%
6,079,728
38.3
%
5,995,488
37.9
%
Time deposits
5,906,106
36.7
%
6,248,363
39.3
%
6,328,115
39.9
%
Total deposits
$
16,116,169
100.0
%
$
15,876,543
100.0
%
$
15,831,262
100.0
%
Gross loan-to-deposit ratio
93.8
%
94.7
%
92.4
%
Credit Quality and Allowance for Credit Losses
Criticized loans. Criticized loan balances remained essentially stable quarter-over-quarter and improved year-over-year. Criticized loans were $334.8 million at September 30, 2026, compared with $334.3 million at June 30, 2026, and down $38.1 million, or 10%, year-over-year from $372.9 million at September 30, 2025. The criticized loan ratio improved to 2.22% of total loans receivable at September 30, 2026, compared with 2.24% at June 30, 2026, and down 34 basis points from 2.56% at September 30, 2025.
Nonperforming assets. Nonperforming assets declined $4.4 million from the prior quarter to $108.5 million, or 0.57% of total assets, at September 30, 2026, compared with 0.59% of total assets at June 30, 2026, and 0.61% of total assets at September 30, 2025. The quarter-over-quarter improvement primarily reflected a reduction in nonaccrual loans.
The following table sets forth the components of nonperforming assets at September 30, 2026, June 30, 2026, and September 30, 2025:
(dollars in thousands) (unaudited)
9/30/2026
6/30/2026
9/30/2025
Loans on nonaccrual status (1)
$
107,797
$
111,973
$
110,010
Accruing delinquent loans past due 90 days or more
—
515
2,149
Total nonperforming loans
107,797
112,488
112,159
Other real estate owned
661
365
—
Total nonperforming assets
$
108,458
$
112,853
$
112,159
Nonperforming assets/total assets
0.57
%
0.59
%
0.61
%
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $17.3 million, $17.1 million and $15.3 million at September 30, 2026, June 30, 2026, and September 30, 2025, respectively.
Net charge-offs. The Company recorded net charge-offs of $7.0 million for the third quarter of 2026, equivalent to 0.19%, annualized, of average loans. This compares with net charge-offs of $9.0 million, or 0.24%, annualized, of average loans for the second quarter of 2026, and $5.1 million, or 0.14%, annualized, of average loans for the third quarter of 2025.
Provision for credit losses. For the third quarter of 2026, the Company recorded a provision for credit losses of $8.6 million, compared with $6.8 million for the second quarter of 2026 and $8.7 million for the third quarter of 2025. The sequential quarter increase in the provision for credit losses reflected higher loan balances, partially offset by lower net charge-offs in the third quarter of 2026 compared with the prior quarter.
Allowance for credit losses. The allowance for credit losses totaled $154.3 million at September 30, 2026, compared with $153.2 million at June 30, 2026, and $152.5 million at September 30, 2025. The allowance coverage ratio was 1.03% of loans receivable at September 30, 2026, unchanged from June 30, 2026, and compared with 1.05% at September 30, 2025.
The following table sets forth the allowance for credit losses and the coverage ratios at September 30, 2026, June 30, 2026, and September 30, 2025:
(dollars in thousands) (unaudited)
9/30/2026
6/30/2026
9/30/2025
Allowance for credit losses
$
154,325
$
153,218
$
152,509
Allowance for credit losses/loans receivable
1.03
%
1.03
%
1.05
%
Capital
At September 30, 2026, the capital ratios of the Company and the Bank continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution.
The following table sets forth the capital ratios for the Company at September 30, 2026, June 30, 2026, and September 30, 2025:
(unaudited)
9/30/2026
6/30/2026
9/30/2025
Minimum Guideline for “Well-Capitalized”
Common Equity Tier 1 Capital Ratio
12.25%
12.27%
12.14%
6.50%
Tier 1 Capital Ratio
12.93%
12.95%
12.83%
8.00%
Total Capital Ratio
13.92%
13.95%
13.85%
10.00%
Leverage Ratio
11.01%
11.07%
10.86%
5.00%
Tangible Common Equity (“TCE”) Ratio (3)
9.28%
9.58%
9.64%
N/A
During the third quarter of 2026, the Company continued to return capital to stockholders through its quarterly common stock dividend of 14 cents per share.
At September 30, 2026, total stockholders’ equity was $2.26 billion, compared with $2.30 billion at June 30, 2026, reflecting growth in retained earnings, return of capital to stockholders, and the net change in accumulated other comprehensive income (“AOCI”), which decreased due to the negative impact of rising interest rates on the fair value of available-for-sale securities. Book value per share at September 30, 2026, was $17.67, compared with $17.97 at June 30, 2026; and TCE per share (3) was $13.55 at September 30, 2026, compared with $13.85 at June 30, 2026.
Subsequent Events
Acquisition of SMBC MANUBANK Commercial Banking Unit. On October 1, 2026, the Company completed the acquisition of the Commercial Banking Unit of SMBC MANUBANK. As part of the closing of the MANUBANK transaction, the Company received an estimated (4) net cash settlement of $307.4 million from the seller, SMBC.
As of the acquisition date of October 1, 2026, loans acquired from MANUBANK totaled approximately $2.20 billion before purchase and other accounting adjustments, comprising $1.35 billion of real estate loans and $0.85 billion of commercial loans, which included $0.20 billion in SBA loans purchased by MANUBANK in the secondary market. Excluding these SBA loans, MANUBANK’s loan portfolio had a weighted average coupon rate of approximately 5.69% at October 1, 2026, before purchase and other accounting adjustments. MANUBANK’s SBA loan portfolio consisted of purchased guaranteed portions of 7(a) loans and these loans would have had a relatively low effective yield for the Company after acquisition; therefore, it was subsequently sold on October 21, 2026, for total net proceeds of $191.3 million with no gain or loss recognized on the sale.
Deposits acquired from MANUBANK totaled approximately $2.60 billion before purchase and other accounting adjustments, comprising $0.66 billion of noninterest bearing demand deposits, $1.77 billion of interest bearing non-maturity deposits, and $0.18 billion of time deposits. The acquired deposits had a weighted average cost of 2.22% at October 1, 2026, before purchase and other accounting adjustments.
(3)
TCE ratio and TCE per share are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12.
(4)
The net cash settlement is based on an estimated final closing statement and is subject to adjustment.
Investor Conference Call
The Company previously announced that it will host an investor conference call on Wednesday, October 28, 2026, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review its unaudited financial results for its third quarter and nine months ended September 30, 2026. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for at least one year. A telephonic replay of the call will be available at 855-669-9658 (domestic) or 412-317-0088 (international) for one week through November 4, 2026, with the replay access code 6995890.
Non-GAAP Financial Metrics
This news release and accompanying financial tables contain certain non-GAAP financial measure disclosures, including net income excluding notable items, earnings per diluted common share excluding notable items, revenue excluding notable items, noninterest expense excluding notable items, efficiency ratio excluding notable items, effective tax rate excluding notable items, PPNR, PPNR excluding notable items, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, TCE per share and TCE ratio. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operational performance and the Company’s capital levels and has included these figures in response to market participant interest in these financial metrics. These non-GAAP financial measures supplement, and do not replace, results prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and should be considered together with, and not as an alternative to, the most directly comparable GAAP financial measures. These non-GAAP financial measures may not be comparable to similarly titled measures used by other companies. Quantitative reconciliations of the most directly comparable GAAP to financial measures to the non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company for Bank of Hope, a leading regional bank serving multicultural customers across the continental United States and Hawaii, with $19.19 billion in total assets as of September 30, 2026. Headquartered in Los Angeles, California, Bank of Hope offers a comprehensive range of commercial, corporate, and consumer banking products and services, including commercial and commercial real estate lending, SBA lending, residential mortgage and consumer lending, treasury management, foreign exchange solutions, interest rate derivatives, and international trade finance. Bank of Hope’s branch network comprises 45 full-service branches operating under the Bank of Hope banner across California, New York, New Jersey, Washington, Texas, Illinois, Alabama and Georgia, and 28 branches in Hawaii under the Territorial Savings banner; following the acquisition of MANUBANK branches on October 1, 2026, seven additional locations in California were added. Bank of Hope also operates SBA loan production offices, commercial loan production offices, and residential mortgage loan production offices throughout the United States, and a representative office in Seoul, South Korea. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to www.bankofhope.com for Bank of Hope and www.tsbhawaii.bank for Territorial Savings, a division of Bank of Hope. By including the foregoing website address links, the Company does not intend to incorporate by reference any material contained or accessible therein.
Forward-Looking Statements
Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will”, “believes”, “expects”, “anticipates”, “intends”, “plans”, “estimates”, “projects”, and similar expressions and statements regarding Hope Bancorp’s strategic initiatives, the acquisition of the Commercial Banking Unit of SMBC MANUBANK (“MANUBANK”), and Hope Bancorp’s future financial and operational results and capital allocation strategy. With respect to any such forward-looking statements, Hope Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. With respect to the acquisition of MANUBANK, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among other things: difficulties and delays in integrating Hope Bancorp and MANUBANK and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; and deposit attrition, operating costs, customer loss and business disruption following the acquisition, including difficulties in maintaining relationships with employees and customers, which may be greater than expected. For additional information concerning these and other risk factors, see Hope Bancorp’s most recent Annual Report on Form 10‑K and other documents Hope Bancorp files with the SEC from time to time. Hope Bancorp does not undertake, and specifically disclaims, any obligation to update any forward‑looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share data)
Assets:
9/30/2026
6/30/2026
% change
9/30/2025
% change
Cash and due from banks
$
491,894
$
640,443
(23
)%
$
454,909
8
%
Investment securities
2,395,438
2,179,253
10
%
2,266,034
6
%
Federal Home Loan Bank (“FHLB”) stock and other investments
66,115
70,436
(6
)%
106,411
(38
)%
Gross loans, including loans held for sale
15,117,845
15,034,187
1
%
14,623,637
3
%
Allowance for credit losses
(154,325
)
(153,218
)
1
%
(152,509
)
1
%
Accrued interest receivable
55,392
53,592
3
%
53,159
4
%
Premises and equipment, net
74,115
69,968
6
%
69,152
7
%
Goodwill and intangible assets
525,997
526,890
0
%
524,503
0
%
Other assets
617,017
570,365
8
%
565,503
9
%
Total assets
$
19,189,488
$
18,991,916
1
%
$
18,510,799
4
%
Liabilities:
Deposits
$
16,116,169
$
15,876,543
2
%
$
15,831,262
2
%
FHLB and Federal Reserve Bank (“FRB”) borrowings
374,000
472,000
(21
)%
24,878
1,403
%
Subordinated debentures and convertible notes, net
112,040
111,675
0
%
110,610
1
%
Accrued interest payable
62,823
63,865
(2
)%
74,376
(16
)%
Other liabilities
266,998
171,981
55
%
210,713
27
%
Total liabilities
$
16,932,030
$
16,696,064
1
%
$
16,251,839
4
%
Stockholders’ Equity:
Common stock, $0.001 par value
$
146
$
146
0
%
$
146
0
%
Additional paid-in capital
1,528,289
1,525,555
0
%
1,521,669
0
%
Retained earnings
1,216,813
1,199,120
1
%
1,155,874
5
%
Treasury stock, at cost
(273,384
)
(273,384
)
0
%
(264,667
)
(3
)%
Accumulated other comprehensive loss, net
(214,406
)
(155,585
)
(38
)%
(154,062
)
(39
)%
Total stockholders’ equity
2,257,458
2,295,852
(2
)%
2,258,960
0
%
Total liabilities and stockholders’ equity
$
19,189,488
$
18,991,916
1
%
$
18,510,799
4
%
Common stock shares – authorized
300,000,000
300,000,000
300,000,000
Common stock shares – outstanding
127,758,427
127,741,836
128,185,271
Treasury stock shares
18,155,561
18,155,561
17,382,835
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
Three Months Ended
Nine Months Ended
9/30/2026
6/30/2026
% change
9/30/2025
% change
9/30/2026
9/30/2025
% change
Interest and fees on loans
$
218,216
$
211,378
3
%
$
216,774
1
%
$
635,513
$
623,098
2
%
Interest on investment securities
21,631
20,359
6
%
21,467
1
%
61,208
55,128
11
%
Interest on cash and deposits at other banks
4,051
3,808
6
%
5,273
(23
)%
11,637
19,261
(40
)%
Interest on other investments and FHLB dividends
1,260
632
99
%
1,186
6
%
3,121
3,471
(10
)%
Total interest income
245,158
236,177
4
%
244,700
0
%
711,479
700,958
2
%
Interest on deposits
103,493
101,785
2
%
115,425
(10
)%
306,733
347,862
(12
)%
Interest on borrowings
6,300
5,423
16
%
2,718
132
%
16,355
8,267
98
%
Total interest expense
109,793
107,208
2
%
118,143
(7
)%
323,088
356,129
(9
)%
Net interest income
135,365
128,969
5
%
126,557
7
%
388,391
344,829
13
%
Provision for credit losses
8,560
6,770
26
%
8,710
(2
)%
23,980
24,602
(3
)%
Net interest income after provision
126,805
122,199
4
%
117,847
8
%
364,411
320,227
14
%
Service fees on deposit accounts
3,439
3,395
1
%
3,235
6
%
10,169
9,262
10
%
Net gains on sales of SBA loans
4,674
4,447
5
%
2,774
68
%
12,387
9,903
25
%
Other customer driven income and fees
8,332
7,721
8
%
5,936
40
%
23,185
17,958
29
%
Net gains (losses) on sales of securities available for sale
—
1,172
(100
)%
—
0
%
1,776
(38,856
)
NM
Other noninterest income
5,667
2,115
168
%
3,440
65
%
10,412
9,850
6
%
Total noninterest income
22,112
18,850
17
%
15,385
44
%
57,929
8,117
614
%
Salaries and employee benefits
58,697
56,901
3
%
54,910
7
%
171,821
156,204
10
%
Occupancy, furniture and equipment
11,737
11,353
3
%
11,596
1
%
33,656
31,525
7
%
Software-related, data and item processing
10,773
10,350
4
%
9,683
11
%
30,976
25,843
20
%
Amortization of investments in affordable housing partnerships
2,740
2,554
7
%
3,216
(15
)%
7,768
7,607
2
%
FDIC assessment
2,622
2,783
(6
)%
2,942
(11
)%
8,219
7,932
4
%
FDIC special assessment expense (reversal)
—
—
0
%
—
0
%
(58
)
—
NM
Earned interest credit
3,109
2,501
24
%
3,529
(12
)%
7,993
9,926
(19
)%
Merger related costs
2,650
2,058
29
%
958
177
%
4,942
20,758
(76
)%
Other noninterest expense
10,466
9,964
5
%
10,027
4
%
30,396
30,400
0
%
Total noninterest expense
102,794
98,464
4
%
96,861
6
%
295,713
290,195
2
%
Income before income taxes
46,123
42,585
8
%
36,371
27
%
126,627
38,149
232
%
Income tax provision
10,546
9,554
10
%
5,595
88
%
28,479
11,027
158
%
Net income
$
35,577
$
33,031
8
%
$
30,776
16
%
$
98,148
$
27,122
262
%
Earnings per common share (“EPS”) – diluted
$
0.28
$
0.26
8
%
$
0.24
17
%
$
0.76
$
0.22
245
%
Weighted average shares outstanding – diluted
128,624,630
128,308,861
128,593,874
128,509,496
126,110,136
Hope Bancorp, Inc.
Selected Financial Data
Unaudited
Three Months Ended
Nine Months Ended
Profitability measures (annualized, except as noted):
9/30/2026
6/30/2026
9/30/2025
9/30/2026
9/30/2025
Earnings per common share - diluted (not annualized)
$
0.28
$
0.26
$
0.24
$
0.76
$
0.22
Earnings per common share - diluted excluding notable items (not annualized) (1)
$
0.29
$
0.27
$
0.25
$
0.79
$
0.63
Return on average assets (“ROA”)
0.75
%
0.71
%
0.66
%
0.70
%
0.20
%
ROA excluding notable items (1)
0.79
%
0.74
%
0.68
%
0.72
%
0.58
%
Return on average equity (“ROE”)
6.19
%
5.76
%
5.50
%
5.70
%
1.64
%
ROE excluding notable items (1)
6.52
%
6.02
%
5.64
%
5.90
%
4.78
%
Return on average tangible common equity (“ROTCE”) (1)
8.03
%
7.48
%
7.19
%
7.39
%
2.13
%
ROTCE excluding notable items (1)
8.45
%
7.81
%
7.36
%
7.65
%
6.20
%
Net interest margin
3.02
%
2.96
%
2.89
%
2.96
%
2.71
%
Efficiency ratio (not annualized)
65.28
%
66.61
%
68.24
%
66.26
%
82.22
%
Efficiency ratio excluding notable items (not annualized) (1)
63.59
%
65.22
%
67.56
%
65.16
%
68.77
%
(1) Earnings per common share - diluted excluding notable items, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12.
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
Three Months Ended
9/30/2026
6/30/2026
9/30/2025
Interest
Annualized
Interest
Annualized
Interest
Annualized
Average
Income/
Average
Average
Income/
Average
Average
Income/
Average
Balance
Expense
Yield/Cost
Balance
Expense
Yield/Cost
Balance
Expense
Yield/Cost
INTEREST EARNING ASSETS:
Loans, including loans held for sale
$
14,967,728
$
218,216
5.78
%
$
14,790,642
$
211,378
5.73
%
$
14,522,425
$
216,774
5.92
%
Investment securities
2,305,772
21,631
3.72
%
2,221,334
20,359
3.68
%
2,256,228
21,467
3.77
%
Interest earning cash and deposits at other banks
437,305
4,051
3.68
%
420,971
3,808
3.63
%
488,992
5,273
4.28
%
FHLB stock and other investments
51,749
1,260
9.66
%
51,839
632
4.89
%
97,584
1,186
4.82
%
Total interest earning assets
$
17,762,554
$
245,158
5.48
%
$
17,484,786
$
236,177
5.42
%
$
17,365,229
$
244,700
5.59
%
INTEREST BEARING LIABILITIES:
Deposits:
Money market, interest bearing demand and savings
$
6,363,113
$
47,120
2.94
%
$
6,085,142
$
43,728
2.88
%
$
6,045,464
$
49,458
3.25
%
Time deposits
6,033,130
56,373
3.71
%
6,244,929
58,057
3.73
%
6,359,578
65,967
4.12
%
Total interest bearing deposits
12,396,243
103,493
3.31
%
12,330,071
101,785
3.31
%
12,405,042
115,425
3.69
%
FHLB and FRB borrowings
433,276
4,018
3.68
%
357,510
3,180
3.57
%
27,286
273
3.97
%
Subordinated debentures and convertible notes
107,905
2,282
8.28
%
107,550
2,243
8.25
%
106,485
2,445
8.98
%
Total interest bearing liabilities
$
12,937,424
$
109,793
3.37
%
$
12,795,131
$
107,208
3.36
%
$
12,538,813
$
118,143
3.74
%
Noninterest bearing demand deposits
3,501,796
3,362,934
3,506,559
Total funding liabilities/cost of funds
$
16,439,220
2.65
%
$
16,158,065
2.66
%
$
16,045,372
2.92
%
Net interest income/net interest spread
$
135,365
2.11
%
$
128,969
2.06
%
$
126,557
1.85
%
Net interest margin
3.02
%
2.96
%
2.89
%
Cost of deposits:
Noninterest bearing demand deposits
$
3,501,796
$
—
—
%
$
3,362,934
$
—
—
%
$
3,506,559
$
—
—
%
Interest bearing deposits
12,396,243
103,493
3.31
%
12,330,071
101,785
3.31
%
12,405,042
115,425
3.69
%
Total deposits
$
15,898,039
$
103,493
2.58
%
$
15,693,005
$
101,785
2.60
%
$
15,911,601
$
115,425
2.88
%
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
Nine Months Ended
9/30/2026
9/30/2025
Interest
Annualized
Interest
Annualized
Average
Income/
Average
Average
Income/
Average
Balance
Expense
Yield/Cost
Balance
Expense
Yield/Cost
INTEREST EARNING ASSETS:
Loans, including loans held for sale
$
14,816,982
$
635,513
5.73
%
$
14,139,046
$
623,098
5.89
%
Investment securities
2,226,139
61,208
3.68
%
2,178,155
55,128
3.38
%
Interest earning cash and deposits at other banks
432,086
11,637
3.60
%
607,549
19,261
4.24
%
FHLB stock and other investments
51,757
3,121
8.06
%
94,272
3,471
4.92
%
Total interest earning assets
$
17,526,964
$
711,479
5.43
%
$
17,019,022
$
700,958
5.51
%
INTEREST BEARING LIABILITIES:
Deposits:
Money market, interest bearing demand and savings
$
6,105,493
$
132,270
2.90
%
$
5,927,729
$
151,960
3.43
%
Time deposits
6,210,790
174,463
3.76
%
6,131,577
195,902
4.27
%
Total interest bearing deposits
12,316,283
306,733
3.33
%
12,059,306
347,862
3.86
%
FHLB and FRB borrowings
359,117
9,606
3.58
%
65,441
993
2.03
%
Subordinated debentures and convertible notes
107,554
6,749
8.27
%
106,153
7,274
9.04
%
Total interest bearing liabilities
$
12,782,954
$
323,088
3.38
%
$
12,230,900
$
356,129
3.89
%
Noninterest bearing demand deposits
3,404,500
3,439,051
Total funding liabilities/cost of funds
$
16,187,454
2.67
%
$
15,669,951
3.04
%
Net interest income/net interest spread
$
388,391
2.05
%
$
344,829
1.62
%
Net interest margin
2.96
%
2.71
%
Cost of deposits:
Noninterest bearing demand deposits
$
3,404,500
$
—
—
%
$
3,439,051
$
—
—
%
Interest bearing deposits
12,316,283
306,733
3.33
%
12,059,306
347,862
3.86
%
Total deposits
$
15,720,783
$
306,733
2.61
%
$
15,498,357
$
347,862
3.00
%
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
Three Months Ended
Nine Months Ended
AVERAGE BALANCES:
9/30/2026
6/30/2026
% change
9/30/2025
% change
9/30/2026
9/30/2025
% change
Gross loans, including loans held for sale
$
14,967,728
$
14,790,642
1
%
$
14,522,425
3
%
$
14,816,982
$
14,139,046
5
%
Interest earning assets
17,762,554
17,484,786
2
%
17,365,229
2
%
17,526,964
17,019,022
3
%
Goodwill and intangible assets
526,532
527,594
0
%
525,022
0
%
526,556
505,782
4
%
Total assets
18,991,587
18,707,236
2
%
18,548,982
2
%
18,741,699
18,126,058
3
%
Noninterest bearing demand deposits
3,501,796
3,362,934
4
%
3,506,559
0
%
3,404,500
3,439,051
(1
)%
Interest bearing deposits
12,396,243
12,330,071
1
%
12,405,042
0
%
12,316,283
12,059,306
2
%
Total deposits
15,898,039
15,693,005
1
%
15,911,601
0
%
15,720,783
15,498,357
1
%
Stockholders’ equity
2,299,264
2,293,446
0
%
2,237,375
3
%
2,297,305
2,203,641
4
%
End of Period
LOAN PORTFOLIO:
9/30/2026
6/30/2026
% change
9/30/2025
% change
Loans receivable (held for investment)
$
15,050,474
$
14,941,520
1
%
$
14,590,519
3
%
Loans held for sale
67,371
92,667
(27
)%
33,118
103
%
Gross loans
$
15,117,845
$
15,034,187
1
%
$
14,623,637
3
%
End of Period
CRE LOANS HELD FOR INVESTMENT BY PROPERTY TYPE:
9/30/2026
6/30/2026
% change
9/30/2025
% change
Multi-tenant retail
$
1,541,629
$
1,585,528
(3
)%
$
1,612,673
(4
)%
Industrial warehouses
1,289,124
1,303,250
(1
)%
1,285,752
0
%
Multifamily
1,158,229
1,171,422
(1
)%
1,219,701
(5
)%
Gas stations and car washes
1,158,067
1,177,756
(2
)%
1,116,447
4
%
Hotels/motels
831,473
820,725
1
%
771,089
8
%
Mixed-use facilities
721,321
728,108
(1
)%
665,239
8
%
Single-tenant retail
638,472
631,319
1
%
629,269
1
%
Office
320,194
348,708
(8
)%
330,736
(3
)%
All other
804,087
749,908
7
%
787,888
2
%
Total CRE loans
$
8,462,596
$
8,516,724
(1
)%
$
8,418,794
1
%
End of Period
DEPOSIT COMPOSITION:
9/30/2026
6/30/2026
% change
9/30/2025
% change
Noninterest bearing demand deposits
$
3,501,963
$
3,548,452
(1
)%
$
3,507,659
0
%
Money market, interest bearing demand, and savings
6,708,100
6,079,728
10
%
5,995,488
12
%
Time deposits
5,906,106
6,248,363
(5
)%
6,328,115
(7
)%
Total deposits
$
16,116,169
$
15,876,543
2
%
$
15,831,262
2
%
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
9/30/2026
6/30/2026
9/30/2025
Total stockholders’ equity
$
2,257,458
$
2,295,852
$
2,258,960
Total capital
$
2,206,215
$
2,183,720
$
2,128,319
Common equity tier 1 ratio
12.25
%
12.27
%
12.14
%
Tier 1 capital ratio
12.93
%
12.95
%
12.83
%
Total capital ratio
13.92
%
13.95
%
13.85
%
Leverage ratio
11.01
%
11.07
%
10.86
%
Total risk weighted assets
$
15,851,445
$
15,658,083
$
15,371,526
Book value per common share
$
17.67
$
17.97
$
17.62
Tangible common equity (“TCE”) per share (1)
$
13.55
$
13.85
$
13.53
TCE ratio (1)
9.28
%
9.58
%
9.64
%
(1) TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10.
ALLOWANCE FOR CREDIT LOSSES CHANGES:
Three Months Ended
Nine Months Ended
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
9/30/2026
9/30/2025
Balance at beginning of period
$
153,218
$
155,114
$
156,661
$
152,509
$
149,505
$
156,661
$
150,527
Initial allowance for purchased credit deteriorated (“PCD”) loans and purchased seasoned loans (“PSL”) acquired (2)
—
—
—
—
—
—
3,971
Provision for losses on loans
8,100
7,100
9,200
7,800
8,100
24,400
23,392
Recoveries
910
203
322
1,694
1,517
1,435
4,594
Charge offs
(7,903
)
(9,199
)
(11,069
)
(5,342
)
(6,613
)
(28,171
)
(29,975
)
Balance at end of period
$
154,325
$
153,218
$
155,114
$
156,661
$
152,509
$
154,325
$
152,509
(2) During the fourth quarter of 2025, the Company adopted ASU 2025-08 effective January 1, 2025, and applied the guidance to the acquisition of Territorial Bancorp, which was completed on April 2, 2025. The presentation of prior periods has been adjusted accordingly.
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
Allowance for unfunded loan commitments
$
2,913
$
2,453
$
2,783
$
3,333
$
3,933
Three Months Ended
Nine Months Ended
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
9/30/2026
9/30/2025
Provision for losses on loans
$
8,100
$
7,100
$
9,200
$
7,800
$
8,100
$
24,400
$
23,392
(Credit) provision for unfunded loan commitments
460
(330
)
(550
)
(600
)
610
(420
)
1,210
Provision for credit losses
$
8,560
$
6,770
$
8,650
$
7,200
$
8,710
$
23,980
$
24,602
Three Months Ended
Nine Months Ended
NET CHARGE OFFS (RECOVERIES):
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
9/30/2026
9/30/2025
CRE loans
$
3,340
$
389
$
817
$
(1,467
)
$
(933
)
$
4,546
$
(877
)
C&I loans
3,656
8,656
9,931
5,169
5,978
22,243
25,191
Residential mortgage and other loans
(3
)
(49
)
(1
)
(54
)
51
(53
)
1,067
Net charge offs
$
6,993
$
8,996
$
10,747
$
3,648
$
5,096
$
26,736
$
25,381
Net charge offs/average loans (annualized)
0.19
%
0.24
%
0.29
%
0.10
%
0.14
%
0.24
%
0.24
%
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
Loans on nonaccrual status (1)
$
107,797
$
111,973
$
109,512
$
131,747
$
110,010
Accruing delinquent loans past due 90 days or more
—
515
10,642
3,943
2,149
Total nonperforming loans
107,797
112,488
120,154
135,690
112,159
Other real estate owned (“OREO”)
661
365
365
365
—
Total nonperforming assets
$
108,458
$
112,853
$
120,519
$
136,055
$
112,159
Nonperforming assets/total assets
0.57
%
0.59
%
0.65
%
0.73
%
0.61
%
Nonperforming loans/loans receivable
0.72
%
0.75
%
0.82
%
0.92
%
0.77
%
Nonaccrual loans/loans receivable
0.72
%
0.75
%
0.75
%
0.90
%
0.75
%
Allowance for credit losses/loans receivable
1.03
%
1.03
%
1.06
%
1.07
%
1.05
%
Allowance for credit losses/nonperforming loans
143.16
%
136.21
%
129.10
%
115.46
%
135.98
%
(1) Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $17.3 million, $17.1 million, $19.4 million, $15.6 million, and $15.3 million, at September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, respectively.
NONACCRUAL LOANS BY TYPE:
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
CRE loans
$
44,818
$
63,647
$
52,920
$
65,106
$
54,016
C&I loans
44,497
31,724
42,538
53,136
45,494
Residential mortgage and other loans
18,482
16,602
14,054
13,505
10,500
Total nonaccrual loans
$
107,797
$
111,973
$
109,512
$
131,747
$
110,010
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands)
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
30 - 59 days past due
$
43,098
$
11,700
$
29,621
$
19,056
$
15,788
60 - 89 days past due
22,177
7,306
59
4,244
5,117
Total accruing delinquent loans 30-89 days past due
$
65,275
$
19,006
$
29,680
$
23,300
$
20,905
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE:
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
CRE loans
$
54,523
$
15,917
$
11,819
$
12,064
$
14,872
C&I loans
8,471
810
604
2,209
3,356
Residential mortgage and other loans
2,281
2,279
17,257
9,027
2,677
Total accruing delinquent loans 30-89 days past due
$
65,275
$
19,006
$
29,680
$
23,300
$
20,905
CRITICIZED LOANS:
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
Special mention loans
$
124,399
$
128,994
$
72,668
$
94,003
$
131,384
Classified loans
210,356
205,283
252,410
257,113
241,483
Total criticized loans
$
334,755
$
334,277
$
325,078
$
351,116
$
372,867
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
Reconciliation of GAAP financial measures to non-GAAP financial measures
Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below.
TANGIBLE COMMON EQUITY (“TCE”)
9/30/2026
6/30/2026
9/30/2025
Total stockholders’ equity
$
2,257,458
$
2,295,852
$
2,258,960
Goodwill and core deposit intangible assets, net
(525,997
)
(526,890
)
(524,503
)
TCE
$
1,731,461
$
1,768,962
$
1,734,457
Total assets
$
19,189,488
$
18,991,916
$
18,510,799
Goodwill and core deposit intangible assets, net
(525,997
)
(526,890
)
(524,503
)
Tangible assets
$
18,663,491
$
18,465,026
$
17,986,296
TCE ratio (TCE / tangible assets)
9.28
%
9.58
%
9.64
%
Common shares outstanding
127,758,427
127,741,836
128,185,271
Book value per share (GAAP)
$
17.67
$
17.97
$
17.62
TCE per share
$
13.55
$
13.85
$
13.53
Three Months Ended
Nine Months Ended
RETURN ON AVERAGE TANGIBLE COMMON EQUITY (“ROTCE”)
9/30/2026
6/30/2026
9/30/2025
9/30/2026
9/30/2025
Average stockholders’ equity
$
2,299,264
$
2,293,446
$
2,237,375
$
2,297,305
$
2,203,641
Average goodwill and core deposit intangible assets, net
(526,532
)
(527,594
)
(525,022
)
(526,556
)
(505,782
)
Average TCE
$
1,772,732
$
1,765,852
$
1,712,353
$
1,770,749
$
1,697,859
Net income (GAAP)
$
35,577
$
33,031
$
30,776
$
98,148
$
27,122
ROTCE (annualized)
8.03
%
7.48
%
7.19
%
7.39
%
2.13
%
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
Three Months Ended
Nine Months Ended
PRE-PROVISION NET REVENUE (“PPNR”)
9/30/2026
6/30/2026
% change
9/30/2025
% change
9/30/2026
9/30/2025
% change
Net interest income
$
135,365
$
128,969
5
%
$
126,557
7
%
$
388,391
$
344,829
13
%
Noninterest income
22,112
18,850
17
%
15,385
44
%
57,929
8,117
614
%
Revenue
157,477
147,819
7
%
141,942
11
%
446,320
352,946
26
%
Less: Noninterest expense
102,794
98,464
4
%
96,861
6
%
295,713
290,195
2
%
PPNR
$
54,683
$
49,355
11
%
$
45,081
21
%
$
150,607
$
62,751
140
%
Notable items:
Loss on investment portfolio repositioning
$
—
$
—
$
—
$
—
$
38,856
FDIC special assessment expense (reversal)
—
—
—
(58
)
—
Merger related costs
2,650
2,058
958
4,942
20,758
Total notable items included in PPNR
2,650
2,058
958
4,884
59,614
PPNR, excluding notable items
$
57,333
$
51,413
12
%
$
46,039
25
%
$
155,491
$
122,365
27
%
Three Months Ended
Nine Months Ended
PROFITABILITY EXCLUDING NOTABLE ITEMS
9/30/2026
6/30/2026
% change
9/30/2025
% change
9/30/2026
9/30/2025
% change
Net income (GAAP)
$
35,577
$
33,031
8
%
$
30,776
16
%
$
98,148
$
27,122
262
%
Notable items:
Merger-related provision for credit losses
—
—
—
—
553
Loss on investment portfolio repositioning
—
—
—
—
38,856
FDIC special assessment expense (reversal)
—
—
—
(58
)
—
Merger related costs
2,650
2,058
958
4,942
20,758
Total notable items included in pre-tax income
2,650
2,058
958
4,884
60,167
Tax effect on notable items in pre-tax income
(759
)
(590
)
(208
)
(1,399
)
(13,170
)
Notable impact from California state tax apportionment law change
—
—
—
—
4,878
Total notable items, net of tax
1,891
1,468
750
3,485
51,875
Net income excluding notable items
$
37,468
$
34,499
9
%
$
31,526
19
%
$
101,633
$
78,997
29
%
Diluted common shares
128,624,630
128,308,861
128,593,874
128,509,496
126,110,136
EPS excluding notable items
$
0.29
$
0.27
7
%
$
0.25
16
%
$
0.79
$
0.63
25
%
Average assets
$
18,991,587
$
18,707,236
$
18,548,982
$
18,741,699
$
18,126,058
ROA excluding notable items (annualized)
0.79
%
0.74
%
0.68
%
0.72
%
0.58
%
Average equity
$
2,299,264
$
2,293,446
$
2,237,375
$
2,297,305
$
2,203,641
ROE excluding notable items (annualized)
6.52
%
6.02
%
5.64
%
5.90
%
4.78
%
Average TCE
$
1,772,732
$
1,765,852
$
1,712,353
$
1,770,749
$
1,697,859
ROTCE excluding notable items (annualized)
8.45
%
7.81
%
7.36
%
7.65
%
6.20
%
Hope Bancorp, Inc.
Selected Financial Data
Unaudited (dollars in thousands, except share and per share data)
Three Months Ended
Nine Months Ended
NONINTEREST INCOME EXCLUDING NOTABLE ITEMS
9/30/2026
6/30/2026
9/30/2025
9/30/2026
9/30/2025
Noninterest income
$
22,112
$
18,850
$
15,385
$
57,929
$
8,117
Notable items:
Loss on investment portfolio repositioning
—
—
—
—
38,856
Noninterest income excluding notable items
$
22,112
$
18,850
$
15,385
$
57,929
$
46,973
Three Months Ended
Nine Months Ended
EFFICIENCY RATIO EXCLUDING NOTABLE ITEMS
9/30/2026
6/30/2026
9/30/2025
9/30/2026
9/30/2025
Noninterest expense
$
102,794
$
98,464
$
96,861
$
295,713
$
290,195
Notable items:
FDIC special assessment expense reversal
—
—
—
58
—
Merger related costs
(2,650
)
(2,058
)
(958
)
(4,942
)
(20,758
)
Noninterest expense excluding notable items
$
100,144
$
96,406
$
95,903
$
290,829
$
269,437
Revenue
$
157,477
$
147,819
$
141,942
$
446,320
$
352,946
Notable items:
Loss on investment portfolio repositioning
—
—
—
—
38,856
Revenue excluding notable items
$
157,477
$
147,819
$
141,942
$
446,320
$
391,802
Efficiency ratio excluding notable items
63.59
%
65.22
%
67.56
%
65.16
%
68.77
%
Three Months Ended
Nine Months Ended
EFFECTIVE TAX RATE EXCLUDING NOTABLE ITEMS
9/30/2026
6/30/2026
9/30/2025
9/30/2026
9/30/2025
Income before income taxes
$
46,123
$
42,585
$
36,371
$
126,627
$
38,149
Notable items before tax effect
2,650
2,058
958
4,884
60,167
Income before tax excluding notable items
$
48,773
$
44,643
$
37,329
$
131,511
$
98,316
GAAP income tax provision
$
10,546
$
9,554
$
5,595
$
28,479
$
11,027
Tax effect on notable items in pre-tax income
759
590
208
1,399
13,170
Notable impact from California state tax apportionment law change
—
—
—
—
(4,878
)
Income tax provision excluding notable items
$
11,305
$
10,144
$
5,803
$
29,878
$
19,319
Effective tax rate (GAAP)
22.86
%
22.44
%
15.38
%
22.49
%
28.91
%
Effective tax rate excluding notable items
23.18
%
22.72
%
15.55
%
22.72
%
19.65
%