Overview

* Hope Bancorp ( HOPE ) reports Q2 net loss of $27.9 mln due to securities repositioning

* Excluding notable items, Q2 net income rises 7% quarter-over-quarter

* Net interest income grows 17%, aided by Territorial Bancorp acquisition

Outlook

* Company expects $12 mln annual interest income from securities repositioning

* Hope Bancorp ( HOPE ) anticipates 1% reduction in effective tax rate

* Company maintains strong capital and liquidity for growth opportunities

Result Drivers

* TERRITORIAL ACQUISITION - Acquisition contributed to loan growth and diversification, reducing deposit costs

* SECURITIES REPOSITIONING - Strategic repositioning led to net loss but expected to improve future earnings

* TAX LAW CHANGE - Change in California tax law impacted tax expense but expected to lower effective tax rate

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS -$0.22

Q2 Net -$27.90

Income mln

Q2 Net -$149.50

Loan mln

Losses

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "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 ( HOPE ) is $12.00, about 5.3% above its July 21 closing price of $11.36

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

Press Release:

(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.)