Live Oak vs Hope Bancorp

Live Oak Bancshares Inc and Hope Bancorp Inc are compared here to illuminate business models, financial performance, and market context. The content is neutral, accessible, and focused on describing how each organisation operates and positions itself within the sector. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

LOB

Metric

HOPE

$1.68B

Market Cap

$1.47B

9.62%

Potential Profit

3.74%

Buy

Analyst Rating

Hold

Investment Analysis

Live Oak

LOB

Pros

Live Oak Bancshares is the leading SBA 7(a) lender, growing its market share from 6.4% to 7.7%, demonstrating strong competitive positioning in small business lending.
The company reported an 8% quarter-over-quarter increase in loan production and a 20% year-over-year growth in customer deposits, reflecting robust operational growth.
Net interest income increased by 8.6% with an improved net interest margin from 3.20% to 3.28%, indicating enhanced profitability and efficiency in core banking operations.

Considerations

Q3 2025 earnings per share of $0.55 missed analyst expectations by 8.5%, and revenues were below forecasts by 1.35%, causing a negative stock reaction.
The company’s stock valuation metrics include a price-to-earnings ratio above 25, which may suggest a higher valuation relative to earnings compared to some peers.
Despite growth in deposits and loans, recent earnings misses indicate potential execution risks in maintaining expected profitability amid economic uncertainty.

Hope Bancorp

HOPE

Pros

Hope Bancorp operates with a focus on commercial banking, especially serving small and medium-sized businesses, providing stable sector exposure.
The company has shown consistent profitability improvements over recent quarters, supported by strong net interest margins and effective cost management.
Hope Bancorp benefits from diversified geographic exposure in key U.S. markets, reducing concentration risk and supporting stable deposit growth.

Considerations

The bank faces cyclicality risks inherent in regional banking, with sensitivity to interest rate fluctuations that can impact net interest income.
Exposure to commercial real estate loans adds vulnerability to shifts in that sector, which can affect asset quality and loan loss provisions.
Competition from larger national banks and fintech firms presents ongoing challenges to customer acquisition and margin protection.

About The Companies

Live Oak (LOB)

Live Oak Bancshares is the bank holding company for Live Oak Bank, a financial institution with a distinct focus. Rather than operating like a traditional high street bank, it specialises in providing loans and deposit services to small businesses throughout the United States. Its model is built on a national online platform, which allows it to reach customers efficiently without a large physical branch network. Beyond its core banking operations, the company holds several subsidiaries. These include Live Oak Ventures, which invests in financial technology companies, and Government Loan Solutions, which offers consultancy services for government-guaranteed lending. This structure positions Live Oak Bancshares as a modern, specialised player in the financial services industry. As with any investment, its value can go down as well as up, and past performance is not a guide to the future.

Hope Bancorp (HOPE)

Hope Bancorp, Inc. is the bank holding company for Bank of Hope and Territorial Savings Bank. It serves a diverse customer base with a comprehensive suite of financial products and services. These include commercial and consumer loans, residential mortgages, and Small Business Administration (SBA) loans. The company also offers treasury management, international trade financing, and foreign currency exchange solutions, catering to both individual and corporate clients. With a significant physical presence, Hope Bancorp operates dozens of full-service branches across key US states like California, New York, Texas, and Hawaii. Its reach is further extended by loan production offices throughout the United States and a representative office in Seoul, South Korea, highlighting its focus on both domestic and international markets. An investment in any company carries risks, and returns are not guaranteed.

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Comparison Snapshot