Bank of Hope, a top lender to Los Angeles’ Korean American community, announced plans to acquire SMBC Manubank’s California-based commercial banking unit for an undisclosed amount.

The downtown-based super-regional bank will soon add $2.5 billion in loans and $2.7 billion in deposits, along with eight commercial banking branches in southern California. With $18.5 billion in assets, Bank of Hope is the fourth largest bank headquartered in downtown Los Angeles with 45 branches in six states.

The all-cash deal, expected to close in the year’s second half, strengthens Bank of Hope’s push into new business communities. The lender will bring on SMBC’s hallmark Japanese banking division, which Bank of Hope President and Chief Executive Kevin Kim said will “drive strategic growth in cross-border middle market banking” in the U.S.

“We are very excited to announce this accretive transaction,” Kim said, “which strengthens our product offering, deepens our talent and expertise, and enhances our ability to serve the diverse multicultural communities that define modern America, with a particular focus on Korean and Japanese clients.”

Deposit boost with new verticals

The acquisition is expected to add more than 20% of value to earnings per share for Hope Bancorp Inc., Bank of Hope’s parent, in 2027. Shares have climbed almost 22% in the last six months, closing at $12.26 per share on April 16. The bank’s next earnings report is slated for April 28. Along with expanding the bank’s deposit base, the deal will also lower its overall cost of deposits and introduce new specialized deposit verticals, including trust and estate banking. 

“We are acquiring significant core deposits and an attractive lending business, which will meaningfully contribute to enhanced profitability and lead to earnings accretion, as we remain focused on delivering long-term value for our stockholders,” Kim said.