LOS ANGELES — March 31, 2026
Executive Summary
Hope Bancorp, Inc. announced that its subsidiary, Bank of Hope, has entered into a definitive agreement to acquire the Commercial Banking Unit (CBU) of SMBC MANUBANK in an all-cash transaction. The transaction includes the acquisition of approximately $2.5 billion in loans and $2.7 billion in deposits, based on balances as of December 31, 2025.
The agreement also includes a planned collaboration and partnership arrangement with Sumitomo Mitsui Banking Corporation (SMBC) to provide banking services to Japanese middle market and retail customers operating in the United States. The transaction is aligned with Hope Bancorp’s strategy to enhance commercial banking capabilities, expand product offerings, and strengthen core funding, while deepening its presence in the Greater Los Angeles metropolitan area.
Announcement Overview
The announced transaction represents a strategic acquisition of the Commercial Banking Unit (CBU) of SMBC MANUBANK by Bank of Hope. The CBU operates eight branches in Southern California, focusing on the Greater Los Angeles metropolitan area, which is described as the second-largest metropolitan area in the United States.
The acquisition is structured as an all-cash purchase of net assets, including loan portfolios and deposit balances, and is designed to integrate the CBU’s operations into Bank of Hope’s existing commercial banking platform. In addition to the acquisition, Bank of Hope and SMBC intend to enter into a collaboration and partnership agreement to support commercial and consumer banking services for Japanese clients in the U.S.
The transaction aligns with Hope Bancorp’s broader objectives to:
- Enhance commercial banking capabilities
- Expand services to Asian subsidiaries and middle market businesses
- Strengthen and diversify funding sources
- Increase geographic footprint in key markets
The transaction has received unanimous approval from the Boards of Directors of all involved entities and is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.
Key Announcement Details
Transaction Overview
- Announcement Type: Acquisition of Commercial Banking Unit and Strategic Collaboration Agreement
- Announcement Date: March 31, 2026
- Acquiring Bank: Bank of Hope
- Holding Company: Hope Bancorp, Inc.
- Target Entity: Commercial Banking Unit (CBU) of SMBC MANUBANK
- Parent Organizations of Seller: SMBC Americas Holdings, Inc. and Sumitomo Mitsui Banking Corporation
- Transaction Structure: All-cash acquisition of net assets
- Assets Acquired: Loan portfolio and deposit balances of the CBU
- Definitive Agreement Status: Executed and announced
Strategic Purpose and Alignment
- Core Strategic Alignment: Enhances commercial banking capabilities and expands services to Asian subsidiaries and middle market businesses in the United States
- Funding Strategy Objective: Strengthens and grows core deposit funding base
- Product Expansion Objective: Broadens services and product offerings across commercial banking segments
- Cross-Border Strategy: Supports Japanese business and retail clients operating in the United States
- Partnership Component: Planned collaboration and partnership agreement with SMBC
- Service Scope Under Partnership: Commercial and consumer banking services for Japanese midsize business and retail customers
Financial Scope and Balance Sheet Impact
- Loan Portfolio Added: Approximately $2.5 billion as of December 31, 2025
- Deposit Base Added: Approximately $2.7 billion as of December 31, 2025
- Deposit Composition Breakdown:
- Noninterest-bearing demand deposits: 22%
- Time deposits: 3%
- Balance Sheet Expansion: Includes commercial loans and commercial real estate loans
- Deposit Mix Enhancement: Strong mix of non-maturity deposits
- Core Deposit Benefit: Provides a significant source of core deposits and customer expansion
- Cost of Deposits Impact: Expected reduction in overall cost of deposits
Geographic and Branch Expansion
- Branch Network Included: Eight branches
- Branch Location: Southern California
- Primary Market Focus: Greater Los Angeles metropolitan area
- Market Significance: Presence in the second-largest metropolitan area in the United States
- Footprint Expansion: Increases Bank of Hope’s core footprint in Los Angeles
Business Lines and Operational Capabilities
- Full-Service Commercial Banking Platform: CBU operates across multiple business lines
- Japanese Banking Division:
- Maintains deep relationships with Japanese businesses operating in the U.S.
- Diversified Industries Segment:
- Serves middle market and larger mid-corporate clients
- Franchise Finance Segment:
- Serves top-tier branded quick service restaurant franchisees
- Commercial Real Estate Lending:
- Provides financing for commercial real estate assets
- Small Business Administration (SBA) Lending:
- Offers SBA-backed loan products
- Specialty Deposit Group:
- Includes Trust and Estate banking services
- Combined Platform Structure:
- Integration of Japanese Banking Division with Bank of Hope’s Korean Subsidiary Group
- Resulting Capability: Creation of a platform designed to serve Asian multinational businesses
Customer Segments and Market Focus
- Primary Customer Segments:
- Japanese businesses operating in the United States
- Asian multinational companies
- Middle market and mid-corporate clients
- Franchise operators
- Small businesses
- Retail banking customers requiring U.S. banking services
- Multicultural Banking Focus: Emphasis on Korean and Japanese client segments
- Service Expansion Goal: Broader reach across continental United States and Hawaii
Financial Highlights and Performance Expectations
- Earnings Accretion: Expected to be over 20% accretive to earnings per share in 2027
- Tangible Book Value Impact:
- Approximate dilution at closing: 4.5%
- Earn-back period: approximately two years
- Return on Equity: Expected tangible return on equity of approximately 12% in 2027
- Capital Deployment Strategy: All-cash transaction optimizes capital utilization
- Profitability Impact: Expected enhancement of profitability and long-term shareholder value
Deposit and Funding Characteristics
- Noninterest-Bearing Deposits Contribution: 22% of deposit base
- Time Deposit Contribution: 3% of deposit base
- Specialized Deposit Segments Added:
- Trust and Estate Banking
- Funding Advantage: Diversified and stable deposit base
- Customer Growth Impact: Enables expansion of customer base through deposit relationships
Organizational and Cultural Alignment
- Shared Banking Philosophy: Relationship-based banking
- Customer Service Approach: Responsive service and long-term customer support
- Operational Expertise: Combined expertise in commercial banking, operations, and relationship management
- Workforce Integration: Inclusion of CBU associates into Bank of Hope
- Client Relationship Impact: Deeper relationships and expanded service capabilities
Transaction Governance and Timeline
- Board Approvals:
- Unanimously approved by Boards of Hope Bancorp and Bank of Hope
- Approved by Boards of SMBC Americas Holdings and SMBC MANUBANK
- Expected Closing Period: Second half of 2026
- Closing Conditions:
- Regulatory approvals
- Customary closing conditions
- Integration Considerations: Integration of operations, personnel, and customer relationships
Advisory and Transaction Support
- Financial Advisor to Hope: Keefe Bruyette and Woods, Inc., a Stifel Company
- Legal Advisor to Hope: Skadden, Arps, Slate, Meagher & Flom LLP
- Financial Advisor to SMBC: RBC Capital Markets
- Legal Advisor to SMBC: Davis Polk & Wardwell LLP
Investor Communication and Disclosure
- Investor Presentation Availability: Accessible via Hope Bancorp investor relations website
- Purpose of Presentation: Highlights strategic and financial rationale of the transaction
Forward-Looking Statements and Risk Factors
- Regulatory Framework: Statements made under the Private Securities Litigation Reform Act of 1995
- Nature of Statements: Expectations, projections, plans, and anticipated outcomes
- Key Risk Factors Identified:
- Failure to satisfy closing conditions
- Integration delays or challenges
- Failure to achieve anticipated synergies or cost savings
- Higher than expected transaction costs
- Deposit attrition and customer loss
- Business disruption during integration
- Economic condition deterioration in operating markets
- Interest rate volatility and asset-liability matching risks
- Liquidity risks
- Non-performing assets and credit losses
- Changes in credit loss assumptions
- Regulatory and compliance risks
- Legal proceedings
- Trade policy changes and geopolitical instability
- Natural disasters
- Company Position on Updates: No obligation to update forward-looking statements except as required by law
Non-GAAP Financial Measures Disclosure
- Nature of Measures: Financial metrics not conforming to U.S. GAAP
- Purpose of Use:
- Internal planning
- Forecasting
- Performance evaluation
- Resource allocation
- Investor Utility: Provides additional insight into ongoing performance and future comparability
- Limitation Statement:
- Not a substitute for U.S. GAAP measures
- May not be comparable across companies
- Forward-Looking Limitation:
- Inability to reconcile forward-looking non-GAAP measures due to uncertainty in future events
Non-GAAP Measure Definitions
Tangible Book Value Per Share
- Calculated by subtracting goodwill and core deposit intangible assets from total stockholders’ equity and dividing by shares outstanding
Tangible Common Equity (TCE) Ratio
- Calculated by dividing tangible book value by total tangible assets after removing goodwill and intangible assets
Return on Average Tangible Common Equity
- Calculated by dividing net income by average tangible common equity
Strategic Alignment with Core Business Objectives
Enhancement of Commercial Banking Capabilities
The acquisition is positioned as a direct alignment with Hope Bancorp’s stated strategy to enhance its commercial banking platform. By integrating the CBU’s business lines, Bank of Hope expands its ability to serve:
- Middle market businesses
- Asian subsidiaries operating in the United States
- Specialized industry segments
Expansion of Product and Service Offerings
The transaction enables Bank of Hope to broaden its product suite and service capabilities, particularly through the addition of specialized lending and deposit segments.
Growth in Core Funding and Deposits
The acquisition adds a substantial deposit base, including:
- Noninterest-bearing demand deposits (22%)
- Time deposits (3%)
This composition contributes to a lower overall cost of deposits and strengthens the bank’s core funding profile.
Geographic Expansion and Market Penetration
The addition of eight Southern California branches enhances Bank of Hope’s presence in the Los Angeles metropolitan area, increasing its footprint in a key economic region.
Detailed Business Lines and Capabilities of the CBU
The Commercial Banking Unit operates as a full-service commercial banking platform, offering a broad range of services across multiple business lines. These include:
1. Japanese Banking Division
- Maintains deep relationships with Japanese businesses operating in the United States
- Serves as a key component in cross-border banking activities
2. Diversified Industries
- Focuses on middle market and larger mid-corporate clients
- Provides lending and financial services across multiple sectors
3. Franchise Finance
- Serves top-tier branded quick service restaurant franchisees
- Offers specialized financing solutions tailored to franchise operations
4. Commercial Real Estate
- Provides financing for commercial real estate assets
- Supports development and investment activities
5. Small Business Administration (SBA) Lending
- Delivers SBA-backed loan products
- Supports small business financing initiatives
6. Specialty Deposit Group
- Includes Trust and Estate banking services
- Expands deposit capabilities through specialized verticals
Combined Platform Advantage
The integration of:
- SMBC MANUBANK’s Japanese Banking Division
- Bank of Hope’s Korean Subsidiary Group
creates a combined platform designed to serve Asian multinational businesses, enhancing cross-border banking capabilities.
Leadership Statements
Kevin Kim, Chairman, President and CEO of Hope Bancorp, stated:
“We are very excited to announce this accretive transaction, 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. The addition of the Japanese Banking Division complements our Korean Subsidiary Banking Group and positions us to drive strategic growth in cross-border middle market banking across the continental United States and Hawaii.”
He further added:
“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. We look forward to partnering with SMBC and serving the retail and commercial banking needs of Japanese clients operating in the U.S. We are pleased to welcome the CBU associates joining our Bank of Hope team.”
Hirofumi Otsuka, CEO of SMBC Americas Division, stated:
“We are pleased to have reached this agreement with Bank of Hope, a trusted and well-established financial institution with a strong reputation for client service and delivering high-quality banking solutions for the communities it serves. We are confident that Bank of Hope, backed by a strong and experienced team, is well positioned to drive continued growth and provide stability and continuity for customers.”
He continued:
“For SMBC in the Americas, this transaction reinforces our U.S. strategy and our commitment to wholesale and institutional banking, positioning us squarely behind businesses where we have scale, depth, and competitive differentiation, allowing us to fully leverage SMBC’s global platform to deliver high-impact, specialized solutions across corporate and investment banking, global markets, and transaction banking.”
Financial Highlights of the Transaction
Hope Bancorp outlined several key financial metrics and expected outcomes associated with the transaction:
Earnings Accretion
- Expected to be over 20% accretive to earnings per share in 2027
Tangible Book Value Impact
- Approximately 4.5% dilution at closing
- Expected to be earned back within approximately two years
Capital Deployment
- All-cash transaction structure
- Expected to improve tangible return on equity to approximately 12% in 2027
Deposit Base Enhancement
- Strengthens deposit composition
- Adds noninterest-bearing deposits
- Expands specialized deposit verticals, including Trust and Estate Banking
Balance Sheet Growth
- Adds $2.5 billion in loans
- Adds $2.7 billion in deposits
- Includes a strong mix of non-maturity deposits
Shared Culture and Client-Centric Approach
The transaction highlights a shared organizational focus on relationship-based banking, including:
- Responsive service delivery
- Long-term customer relationships
- Community-focused banking approach
The combination brings together experienced bankers with expertise across commercial banking, operations, and relationship management, enabling:
- Deeper client engagement
- Broader service capabilities
- Immediate operational execution
Transaction Details and Advisory Roles
Structure of the Transaction
- All-cash acquisition of net assets
- Includes:
- Loan portfolio
- Deposit balances
Approvals and Timeline
- Approved by:
- Boards of Hope Bancorp and Bank of Hope
- Boards of SMBC Americas Holdings and SMBC MANUBANK
- Expected closing:
- Second half of 2026
- Subject to:
- Regulatory approvals
- Customary closing conditions
Advisors Involved
- Keefe Bruyette and Woods, Inc., a Stifel Company – Financial advisor to Hope
- Skadden, Arps, Slate, Meagher & Flom LLP – Legal advisor to Hope
- RBC Capital Markets – Exclusive financial advisor to SMBC
- Davis Polk & Wardwell LLP – Legal advisor to SMBC
Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of:
- Section 27A of the Securities Act of 1933
- Section 21E of the Securities Exchange Act of 1934
These statements include terms such as:
- “will,” “expects,” “anticipates,” “plans,” “estimates,” “intends”
Risks and Uncertainties Include:
- Failure to meet closing conditions
- Integration challenges
- Higher transaction costs
- Customer attrition or disruption
- Economic condition deterioration
- Interest rate volatility
- Liquidity risks
- Credit losses
- Regulatory changes
- Legal proceedings
- Global trade policy impacts
- Geopolitical instability
- Natural disasters
Hope Bancorp states that:
- Actual results may differ materially
- No obligation is undertaken to update forward-looking statements, except as required by law
Non-GAAP Financial Measures
The communication includes non-GAAP financial measures, which:
- Do not conform to U.S. GAAP
- Are used internally for:
- Planning
- Forecasting
- Performance evaluation
- Resource allocation
Purpose of Non-GAAP Measures
- Provide additional insight into ongoing performance
- Enable meaningful comparison of future operating results
Limitations
- Should not be viewed as alternatives to U.S. GAAP
- May not be consistent across companies
Forward-Looking Limitations
The company does not provide forward-looking GAAP reconciliations due to:
- Uncertainty in:
- Portfolio changes
- Mergers and acquisitions
- Litigation-related contingencies
- Tax items
Non-GAAP Measure Definitions
Tangible Common Equity (TCE) Ratio
- Calculated by:
- Subtracting goodwill and intangible assets from total equity
- Dividing by tangible assets
Tangible Book Value Per Share
- Calculated by:
- Dividing tangible book value by shares outstanding
Return on Average Tangible Common Equity
- Calculated by:
- Dividing net income by average tangible common equity
About Hope Bancorp, Inc.
Hope Bancorp, Inc. is the holding company for Bank of Hope, with $18.53 billion in total assets as of December 31, 2025.
Key highlights include:
- Largest regional bank serving multicultural customers across the continental United States and Hawaii
- Headquarters in Los Angeles
- Offers:
- Commercial and corporate banking
- Consumer banking
- Commercial real estate lending
- SBA lending
- Residential mortgage and consumer lending
- Treasury management
- Foreign exchange solutions
- Interest rate derivatives
- International trade finance
Branch Network
- 45 full-service branches across multiple U.S. states
- 29 branches in Hawaii under Territorial Savings
- Additional:
- SBA loan production offices
- Commercial loan production offices
- Residential mortgage offices
- Representative office in Seoul, South Korea
Regulatory Status
- California-chartered bank
- Deposits insured by the FDIC
- Operates as an Equal Opportunity Lender
Media Contact
For additional information, visit bankofhope.com.
Source Attribution
Source: Company announcement