Bank of Hope, a prominent lender within Los Angeles’ Korean American community, has officially expanded its business banking presence. The bank finalized its acquisition of SMBC Manubank’s commercial banking unit on October 1, adding $2.3 billion in loans and $2.6 billion in deposits to its portfolio. This deal, first announced in late March, also includes the transfer of Manubank’s seven commercial banking branches located in Southern California.
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Kevin Kim, Bank of Hope’s chief executive, stated that the integration of Manubank’s experienced bankers and established client relationships with Bank of Hope’s extensive banking platform will enhance their commercial capabilities and create new opportunities to strengthen client engagement.
With assets totaling $18.5 billion, Bank of Hope ranks as the fourth largest bank headquartered in Los Angeles. The bank was formed in 2016 through the merger of BBCN Bank and Wilshire Bank. Prior to the acquisition, it operated 45 branches across six states, in addition to 28 branches in Hawaii under Territorial Savings.
According to Julianna Balicka, Bank of Hope’s chief financial officer, the bank intends for this acquisition to diversify its deposit mix and reduce the proportion of certificates of deposit (CDs) in its holdings. While CDs are a favored product among its core customers, they incur higher interest costs and may negatively impact profitability due to their rigid terms. Kim emphasized that the acquisition aligns with the bank’s goals to enhance its middle market and multinational banking capabilities, pursue specialty deposit avenues, expand its footprint in Southern California, and improve its balance sheet with quality loans and desirable deposits.