Thank you, Drew. Good morning, everyone, and thank you for joining us for the Hope Bancorp investor conference call for the fourth quarter of 2025.

As usual, we will be using a slide presentation [which is available on the investor relations page?] of our Investor Relations website.

Beginning on slide 2, let me start with a brief statement regarding forward-looking remarks. The call today contains forward-looking projections regarding the future financial performance of the company and [guarantees of?]

future performance. Actual outcomes and results may differ materially.

Hope Bancorp assumes no obligation to revise any forward-looking projections that may be made on today's call. In addition, some of the information referenced during this call today includes non-GAAP financial measures.

For a more detailed description of the risk factors and a reconciliation of GAAP to non-GAAP financial measures, please refer to the company's filings with the SEC, as well as the safe harbor statements in our press release issued this morning. Now, we have allotted 1 hour for this call.

Presenting from management today will be Kevin Kim, Hope Bancorp's Chairman, President, and CEO; and Julianna Balicka, our Chief Financial Officer. Peter Koh, our Chief Operating Officer, is also here with us as usual, and will be available for the Q&A session.

With that, let me turn the call over to Kevin Kim. Kevin?

Good day. I am very pleased to report that we ended 2025 on a positive note with strong earnings growth in the fourth quarter.

Beginning with slide 3, you will find a brief overview of our results. $44 million, up 42% fourth quarter.

Quarter-over-quarter, net income rose, driven by growth in net interest income, strength in customer fee income, lower provision for credit losses, and a lower tax expense, partially offset by higher operating expense. Looking back at [the year?]

of deposits, reduced our reliance on broker deposits, [added?] experienced senior leadership and talent to support [disciplined growth?]

, [strengthened?] our asset quality with a steady decrease in criticized loans in each quarter of 2025.

We also expanded our banking footprint to the strategically attractive market of Hawaii via the Territorial Bancorp acquisition, which closed in April 2025. In sum, we were able to optimize our balance sheet and meaningfully improve our underlying core profitability metrics.

As we look ahead, we believe we are well positioned to continue making progress towards our medium-term financial goals. I want to express my sincere appreciation for the dedication of our colleagues at Bank of Hope.

Their steadfast [commitment?] and strengthened our position as the leading regional bank serving multicultural communities across the continental United States and Hawaii.

As we navigate the path ahead, I am confident that [we will achieve?] even greater positive outcomes in the years to come.

[Capital?] ratios increased quarter-over-quarter and remain [well above regulatory minimums?]

. Our board of directors declared a quarterly common stock dividend of 14 cents per share, payable on or around February 20th to stockholders of record as of February 6th, 2026.

Our board of directors also reinstated our prior share purchase authorization, which still has $35 million available. Our healthy capital ratios position us to selectively and prudently return capital to shareholders via a share buyback program, while maintaining strong overall capital levels to support growth opportunities and common stock dividends.

Continuing to slide 5. At December [31st, 2025, gross loans totaled?]

$14.8 billion, up 1% quarter-[over-quarter?] , driven by broad-based growth across commercial real [estate, C&I, and warehouse?]

loans. Year-over-year, gross loans are up 8%, largely reflecting the impact of the Territorial acquisition and organic residential mortgage growth.

Loan production momentum has improved throughout 2025, with fourth quarter 2025 production volumes up 39% relative to the year-ago quarter. At December 31st, 2025, deposits totaled $15.6 billion, up 9% year-over-year, primarily due to the Territorial acquisition, and down 1% from September 30th, largely due to typical fourth quarter fund movements in certain [commercial accounts?]

. Our strategy is centered on building a durable deposit base by expanding primary customer relationships and improving funding efficiency through thoughtful mix management and pricing discipline.

In 20[25, we reduced brokered?] deposits, which declined 15% year-over-[year.

Slide 6 summarizes the progress?] we are making in strengthening the organization.

Our continued investments in people and capabilities are reinforcing disciplined growth, expanding our banking franchise, and deepening client engagements as we broaden our market footprint. With that, I will ask [Juliana to review our financial performance?]

for the quarter. Julianna?

Thank you, Kevin, and good morning, everyone. Beginning on slide 6, our net interest income totaled $127 million for the fourth quarter of 2025, an increase of 1% from the prior quarter and up 25% from the fourth quarter of 20[24.

Net interest margin?] was 2.90%, up 1 basis point from the third quarter.

[Higher loan yields] more than offset the headwind from lower earning asset yields [from the fourth quarter of 2024, primarily driven by lower securities yields?] , the latter being partially repositioned in 2025.

On slide 7, we present the quarterly trends in our average loan and deposit balances and our weighted average yields and costs. Reflecting the impact of Fed funds target rate cuts, our average loan yield declined by 12 basis points, and the cost of average interest-bearing deposits decreased by 17 basis points from the previous quarter.

In 2026, we expect to benefit from two ongoing tailwinds in our balance sheet: the upward repricing of maturing 5-year commercial real estate loans to current market rates and the downward repricing of time deposits. On to slide 8, where we summarize our noninterest income.

In the fourth quarter of 2025, we realized growth across a number of fee income lines, and strength in customer-level swap fees was a highlight. Throughout 2025, management has been focused on improving fee income execution to diversify the bank's revenue streams.

For example, customer-level swap fees were $6 million for the full year of 2025, an increase of 270% from $1.6 million in 2024. During the fourth quarter, we sold $46 million of SBA loans, compared with $48 million in the third quarter.

Accordingly, we recognized SBA loan gains on sale of $2.6 million for the fourth quarter, compared with $2.8 million for the third quarter. Moving on to noninterest expense on slide 9.

Our noninterest expense totaled $99 million in the fourth quarter of 2025, up from $97 million in the third quarter. The sequential quarter increase was mainly driven by compensation-related costs, reflecting the impact of hiring to support the company's strategic initiatives and revenue-generating capabilities.

The year-over-year increase in noninterest expense from $78 million in [the fourth quarter of 2024 primarily reflects the?] inclusion of Territorial Savings Bank operating expenses.

The fourth quarter 2025 efficiency ratio was essentially stable link-quarter at 68%, with revenue growth effectively absorbing the incremental investments that we have been making. Next, on to slide 10.

[Credit quality trends were favorable?] throughout the year, with sequential quarterly balance decreases in criticized [loans, which reflected?]

our disciplined and proactive approach to [underwriting?] and portfolio management, as well as successful workouts of problem loans.

At December 31st, 2025, criticized loans were $351 million, down 6% quarter-over-quarter and down 22% year-over-year. The sequential quarter improvement included a 48% link-quarter decrease in C&I special mention loans.

The criticized loan ratio improved to 2.39% of loans at December 31st, 2025, down from 2.56% at September 30th, 2025, and down from 3.30% at December 31st, 2024. Net charge-offs were $3.6 million for the fourth quarter of 2025, or annualized 10 basis points of average loans, compared with $5.1 million, or 14 basis points annualized, in the third quarter.

The fourth quarter of 2025 provision for credit losses was $7.2 million, compared with $8.7 million for the third quarter of 2025. The quarter-over-quarter decrease in the provision for credit losses primarily reflected lower net charge-offs and the link-quarter change in the allowance for unfunded commitments.

The allowance for credit losses totaled $157 million at December 31st, 2025, up from $152.5 million at September 30th. The allowance coverage ratio was 1.07% of loans receivable at December 31st, 2025, up 2 basis points compared with 1.05% at September 30th.

Thank you, Julianna. Moving on to the outlook on slide 11 [for full year?]

2026. We expect to see year [over year net interest income growth in 2026?]

, continuing to build on the growth momentum from the second half of 2025, and supported by the hiring that we have been making in our frontline teams throughout 2025. We expect year-over-year revenue [growth in the low-teens percentage range?]

for 2026. This will be driven by our [ongoing balance sheet optimization?]

and strong fee income growth. [Our outlook assumes?]

two Fed funds target rate cuts, 25 basis points each in June and September 2026, in line with the current forward interest rate curve. In addition, we anticipate a tailwind to net interest margin expansion from the downward repricing of time deposits, as well as from the upward repricing of maturing commercial real estate loans to current rates.

In terms of fee income, we expect to see a [continuation of the strong momentum?] that we delivered in 2025.

Overall, our outlook is for year-over-year pre-provision net revenue growth, excluding notable items, to be in the range of 25% to 30%. The combination of our revenue growth outlook and [the strategic investments the?]

bank has been making in people and platforms to strengthen its franchise are anticipated to support our revenue growth outlook in 2026. Going forward, we would consider the fourth quarter 2025 [noninterest expense as a starting?]

quarterly run rate for 2026, factoring in [modest cost increases as we continue to?] strengthen frontline capabilities, as well as [modest merit increases.

Our outlook assumes?] a steady asset quality backdrop and an effective tax rate between 20% and 25% on a full year basis.

With that, I will briefly review our medium-term financial targets on slide 12. We continue to make progress towards our medium-term financial targets and believe we are well positioned to achieve these goals.

Our bottom-line financial target continues to be a return on average assets of approximately 1.2%. To achieve this metric, we are targeting loan growth in the high single-digit percentage range and revenue growth over 10% on an annual normalized basis.

The loan growth target is part of our outlook and plan for 2026 and is expected to drive our revenue growth, alongside continued expansion of net interest margin and strong fee income growth. We expect to exceed our normalized revenue target this year.

Over the medium term, we are continuing to target an enhanced efficiency ratio. Our current target is for an efficiency ratio in the mid-50 percentage range, which reflects our recent and planned strategic investments in the business and personnel to support the development of our commercial and corporate banking capabilities.

We believe that our efficiency enhancement will come from a combination of sustained strong revenue growth, disciplined expense management, and ongoing operational process improvement. Improved efficiency remains a medium-[term target, and while we expect to see some improvement in our efficiency?]

ratio in 2026 through positive operating [leverage, reaching the mid-50s target will likely?] take more than just 1 year.

Ultimately, [operating?] leverage over the medium term is expected to improve [profitability and return on equity to our target?]

. In summary, building on the execution of our improved 2025 financial results, our stronger balance sheet positioning, as well as targeted team and talent additions have enhanced our capacity to deliver disciplined, profitable, and sustainable growth, creating durable value for our stakeholders in the years ahead.

With that, operator, please open up the call for questions.

Hey, guys. On for Gary Tenner here.

Can I quickly just get the PAA accretion number?

I'm sorry, we don't disclose that number separately.

All right. Then maybe can I get your thoughts on deposit costs from here in terms of pricing?

Do you guys disclose a spot rate for deposit costs?

We did not provide the spot rate for deposit costs on this call. I can look that up momentarily.

One second. Our spot rate on total deposits was 2.68% as of December 31st, 2025.

In terms of deposit costs going forward, as we mentioned in our remarks, the continued downward repricing of CD portfolio as it turns over will continue to lower our deposit costs in the future. Then we reduced our non-maturity deposit rates alongside Fed fund cuts.

To the extent that there are future cuts, we will continue that practice, of course. Then thirdly, behind the DDA growth that we are anticipating and planning for in this year, we have been investing and strengthening our TMS, treasury management, products and services, infrastructure, and teams in order to be able to expand our customer relationships and capture more of the operating deposit wallet share.

An improved deposit mix will be the third factor in helping to reduce our deposit costs in 2026.

Appreciate the color there. Then maybe last one for me.

You guys mentioned new hiring as a potential lever for loan growth in your outlook slide. How should we think about new hiring going forward in 2026?

Any sort of new hire targets you guys can give out?

Not specific new hire targets, but our business plan does have very specific roles outlined in the hiring that we are bringing on board. Our hiring is focused on supporting revenue generation and the capabilities related to that, as well, obviously, frontline and related support.

In terms of thinking about that from your perspective, I would say that if you start with the fourth quarter run rate that you saw that already [hired in 2025?] , and then from here on out, when you think about [it, you can?]

think about it as a OpEx growth rate in the [mid-single digits?] .

Got it. That was helpful.

Thanks. [To ask?]

Hi, this is Charlie on for Kelly Motta. [Can you talk about?]

what the CD repricing looks like, as you mentioned that downward repricing is a [core driver of?] repricing there going forward into 2026?

Thank you.

In 2026, we're looking at a repricing of $6.3 billion. Obviously, a lot of it reprices quickly.

CDs are by nature 12 months. In the first quarter, we've got a total of [CDs repricing?]

CDs have been coming in at somewhere between 3.90% [Branch?] CDs were coming in in that 3.90% kind of percent level.

[There's also the?] repricing of institutional CDs, and pricing has been coming in at 3.70%.

It's going to be a blend of both kind of going forward.

Awesome. Thank you for the color there.

Then, I guess just following up on the overall margin dynamics, can you remind us of any sensitivity to cuts and how you view the overall [margin dynamics?] Just the overall margin dynamics and any sensitivity to [rate cuts as you're?]

heading into 2026?

Actually, I need to make a correction. The 3.90s that I quoted you from the branch CDs, I was reading from the roll-off WAAC column.

I'm very sorry, let me correct that. The new roll-on from branch CDs has been in the 3.75% to 3.80% range.

Okay. [Thank you.]

Let me make that correction. The sensitivity of our margin to the rate cuts, I would probably take a look at the third quarter and the fourth quarter margin relative to the rate cuts you've seen in this half of the year and extrapolate from that.

At this point in time, the rate cuts are expected in the second half of next year, a lot can change between now and then. I'll just extrapolate from recent trends.

Okay. Thank you.

I guess from a high level, looking back on the year, you guys entered Hawaii. Just an update on the operations there and the strategy there, if you're hiring teams or still stabilizing operations.

Thank you.

Yeah. Our focus in [2025?]

in Hawaii was to ensure the successful integration of the teams and add resources as necessary. During the transition period in 2025, we were pleased to see that we did not experience any meaningful deposit fluctuations.

The reception by our customer base in Hawaii [has been positive. And?]

we are looking forward to generating growth from this [strategic market?] .

Great. Thank you.

Thank you. Once again, thank you all for joining us today, and we look forward to speaking with you again next quarter.

Long, everyone.