HOPE

The headline looks alarming — net income fell to $61.6M (-38% YoY), diluted EPS $0.49 (-40%), an anemic 2.7% ROE, and a 27.7x P/E on a no-growth bank. But the 10-K is explicit that 2025 GAAP results were depressed by 'acquisition accounting adjustments and merger-related expenses associated with the acquisition of Territorial Bancorp' (closed April 2, 2025) plus 'the loss on securities sold as a result of repositioning.' Management's own non-GAAP bridge tells the real story: net income excluding notable items was $113.3M and diluted EPS ex-notables was $0.89 — implying a far more reasonable ~15x multiple. Net interest income actually recovered to $472.2M in 2025 from $427.9M in 2024 as funding costs eased (interest expense fell to $468.9M from $526.1M), so the core spread engine is healing, not breaking.

Valuation is the crux of the hold. At $13.57 the stock trades at ~0.76x the $17.81 period-end book value and essentially at tangible common equity ($13.71/share) — you are paying roughly liquidation value for the equity. The $0.56 declared dividend (held flat for five straight years) yields ~4.1% and is comfortably covered even by depressed GAAP EPS. That downside cushion plus the Territorial deal making HOPE 'the largest regional bank catering to multicultural customers across the continental United States and Hawaii' is the bull case.