Hope Bancorp Acquires U.S. Commercial Banking Unit from Japan’s SMBC
Los Angeles-based Hope Bancorp has agreed to acquire the U.S. commercial banking unit of Japan’s Sumitomo Mitsui Banking Corp. (SMBC) in a strategic move to extend its service to Asian-American entrepreneurs and Asian multinational firms operating in the U.S. The acquisition, which is expected to close in the second half of 2026, is in line with SMBC’s strategy to concentrate its U.S. operations on wholesale and institutional banking.
Details of the Acquisition
Hope Bancorp will acquire the SMBC Manubank commercial banking team, which primarily serves Japanese-owned small to middle-sized businesses. The acquisition includes eight Los Angeles-based branches, $2.5 billion worth of loans, and deposits totaling $2.7 billion. The SMBC Manubank also offers Small Business Administration loans, franchise loans, and commercial real estate loans.
As the nation’s largest Korean-American bank with assets worth $18.5 billion, Hope Bancorp did not release the total deal price. However, it affirmed that it would purchase assets and assume liabilities on a net book value basis.
Prospects and Expectations
Hope Bancorp projects a 20% earnings-per-share accretion by 2027. Analyst Matthew Clark from Piper Sandler terms this target as “very doable,” viewing the commercial banking unit as a natural extension of Hope’s franchise. Following the announcement of the deal, Hope’s shares traded up by over 5% at $11.78.
Timothy Coffey of Brean Capital upgraded his rating on Hope Bancorp from “neutral” to “buy,” describing its post-deal earnings power as “superior to peers.” Investors seemed to concur with this sentiment, as reflected in the positive movement of Hope’s shares.
SMBC Manubank’s History and Future
Established as Manufacturers Bank in Los Angeles in 1962, SMBC Manubank was acquired by Japan’s Mitsui Bank in 1981 to expand its U.S. commercial presence and serve Japanese businesses in California better. After the merger of Mitsui with Sumitomo, Manufacturers became part of the SMBC Group and rebranded as SMBC Manubank in 2023.
The bank launched its digital-only Jenius division the same year but decided to shutter it after losses amounting to approximately $170 million in both 2024 and 2025. Following the sale of Jenius’ deposits to Axos Financial, SMBC decided to exit SMBC Manubank’s traditional strong suit, small and middle-market commercial lending.
A Strategic Move for Hope Bancorp
For Bank of Hope, which has built a substantial business serving Korean-American entrepreneurs, the acquisition of a Japanese-focused lending team is complementary. The move is expected to enhance its ability to serve Asian multinational businesses.
“We look forward to partnering with SMBC and serving the retail and commercial banking needs of Japanese clients operating in the U.S.,” Kevin Kim, Hope Chairman and CEO, said in a press release.
The acquisition of the Japanese bank’s U.S. unit follows Hope’s purchase of Territorial Bancorp in Honolulu, a deal valued at $78.6 million when announced. Hope adopted its current brand name in 2016, around the time that it completed a merger of equals with Los Angeles-based Wilshire Bancorp, another leading Korean-American bank.
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