Merchants Bancorp vs Hope Bancorp

Merchants Bancorp vs Hope Bancorp: this page compares business models, financial performance, and market context to help readers understand how the two banks operate and how they fit within the industry landscape. The comparison remains neutral and accessible, avoiding speculation while outlining the factors that influence their profiles and strategy. Educational content, not financial advice.

Merchants Bancorp vs Hope Bancorp: this page compares business models, financial performance, and market context to help readers understand how the two banks operate and how they fit within the indust...

Comparison Snapshot

Key Financial Metrics

MBIN

Metric

HOPE

$1.57B

Market Cap

$1.47B

15.65%

Potential Profit

3.74%

Buy

Analyst Rating

Hold

Investment Analysis

Merchants Bancorp

MBIN

Pros

Merchants Bancorp has strong profitability with a low price-to-earnings ratio of 6.79, indicating potential undervaluation relative to earnings.
The company has a sizeable market capitalization around $1.44 billion and annual sales exceeding $1.45 billion, demonstrating a solid business scale.
It maintains a diverse product offering through its community bank operations, supporting stable local commercial banking revenue streams.

Considerations

The stock exhibits a relatively high beta of 1.29, implying higher volatility compared to the market, which may increase investment risk.
Dividend yield is modest at approximately 1.24%, offering limited income appeal compared to some peers in the banking sector.
Merchants Bancorp’s share count is large (around 45.9 million shares), potentially diluting individual shareholder value if growth is not strong.

Hope Bancorp

HOPE

Pros

Hope Bancorp showed improved Q3 2025 net income growth of 28% year-over-year, supported by rising net interest income and an expanding net interest margin.
The bank benefits from a strong niche serving Korean American and multicultural customers with expanded geographic coverage through recent acquisitions.
Hope Bancorp offers a relatively attractive dividend yield near 5.1%, appealing for income-focused investors amid stable capital ratios.

Considerations

Hope Bancorp’s revenue has declined over the past year with a reported 15% decrease in 2024, indicating near-term growth headwinds.
The bank’s stock trades at a higher forward price-to-earnings ratio (~10.2) compared to historical metrics, suggesting less valuation margin for error.
Deposit levels decreased slightly recently, and brokered deposits fell 18% quarter-over-quarter, signaling potential liquidity or funding challenges.

About The Companies

Merchants Bancorp (MBIN)

Merchants Bancorp (MBIN) is the holding company for an Indiana-based regional bank that provides commercial and consumer banking services, including lending, deposit accounts and wealth-management solutions. With a market capitalisation around $1.47 billion, MBIN is sized as a small regional bank where net interest margin, loan growth and credit quality typically drive results. Investors often watch sensitivity to interest-rate moves, deposit trends and local economic conditions in its primary markets. The company may benefit from steady business banking relationships and modest commercial real-estate exposure, while facing competition from larger banks and fintechs. Regulatory capital, asset quality and funding costs are key indicators to monitor. This summary is educational and not personalised advice; bank stocks can be volatile and past performance does not guarantee future returns. Consider your risk tolerance and investment horizon before acting, and consult a financial adviser for specific guidance.

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.

Which Baskets Do They Appear In?

Bank M&A Activity Overview: Consolidation Wave

Fifth Third's $10.9 billion acquisition of Comerica creates a new top-ten U.S. bank, signaling a potential wave of consolidation in the regional banking sector. This theme identifies other mid-sized regional banks that could become prime candidates for similar mergers or acquisitions as the industry continues to scale up.

Published: October 10, 2025

Explore Basket

Inflation Resilience Portfolio Explained

The Fed's key inflation gauge remains stubbornly high, signaling that elevated price levels may persist for longer than expected. This creates an investment opportunity in companies that can thrive in an inflationary environment, such as those with the ability to raise prices or benefit from higher interest rates.

Published: September 27, 2025

Explore Basket

European Bank Targets: M&A Risks and Opportunities

BBVA's hostile takeover bid for Sabadell has been rejected by the latter's board, signaling a potential wave of mergers and acquisitions in the European banking sector. This theme focuses on financial institutions that could be involved in or benefit from increased M&A activity.

Published: September 12, 2025

Explore Basket

Which Baskets Do They Appear In?

Bank M&A Activity Overview: Consolidation Wave

Fifth Third's $10.9 billion acquisition of Comerica creates a new top-ten U.S. bank, signaling a potential wave of consolidation in the regional banking sector. This theme identifies other mid-sized regional banks that could become prime candidates for similar mergers or acquisitions as the industry continues to scale up.

Published: October 10, 2025

Explore Basket

Inflation Resilience Portfolio Explained

The Fed's key inflation gauge remains stubbornly high, signaling that elevated price levels may persist for longer than expected. This creates an investment opportunity in companies that can thrive in an inflationary environment, such as those with the ability to raise prices or benefit from higher interest rates.

Published: September 27, 2025

Explore Basket

European Bank Targets: M&A Risks and Opportunities

BBVA's hostile takeover bid for Sabadell has been rejected by the latter's board, signaling a potential wave of mergers and acquisitions in the European banking sector. This theme focuses on financial institutions that could be involved in or benefit from increased M&A activity.

Published: September 12, 2025

Explore Basket

Discover More Comparisons

Merchants Bancorp vs National Bank Holdings

Merchants Bancorp vs S&T Bancorp

Merchants Bancorp vs Bladex

Merchants Bancorp vs Hope Bancorp

Comparison Snapshot