LOS ANGELES, April 1 — Hope Bancorp, Inc. (NASDAQ: HOPE) today announced that Bank of Hope, its bank subsidiary, has entered into a definitive agreement under which Bank of Hope will acquire the Commercial Banking Unit (“CBU”) of SMBC MANUBANK, a wholly owned subsidiary of SMBC Americas Holdings, Inc. and Sumitomo Mitsui Banking Corporation (“SMBC”). In addition, Bank of Hope and SMBC intend to enter into a collaboration and partnership agreement to provide commercial and consumer banking services to SMBC’s Japanese midsize business and retail customers needing banking services in the United States.
This transaction aligns with Hope Bancorp’s core strategies to enhance its commercial banking capabilities, expand services and product offerings to the Asian subsidiary and middle market business in the United States, and continue to grow its core funding. The acquisition adds approximately $2.5 billion in loans and $2.7 billion in deposits, based on the CBU balances as of December 31, 2025. Through the CBU, SMBC MANUBANK operates eight branches in Southern California with a focus on the attractive greater Los Angeles metropolitan area. The addition of these branches increases Bank of Hope’s core footprint in Los Angeles, the second-largest metropolitan area in the United States.
The CBU’s business lines are complementary to Bank of Hope’s key business segments, positioning the company for efficient growth. The CBU is a full service commercial bank offering a broad range of banking services across the following business lines: 1) the Japanese Banking Division, which has deep relationships with Japanese businesses that operate in the United States, 2) Diversified Industries, serving middle market and larger mid-corporate clients, 3) Franchise Finance, serving top tier branded quick service restaurant franchisees, 4) Commercial Real Estate, 5) Small Business Administration (SBA) loans, and 6) Specialty Deposit group, including Trust and Estate banking. Combining SMBC MANUBANK’s Japanese Banking Division and Bank of Hope’s Korean Subsidiary Group creates a unique, top-tier platform designed to serve Asian multi-national businesses.
“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,” said Hope Bancorp Chairman, President and CEO Kevin Kim.
“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,” added Kim.
SMBC Americas Division CEO Hirofumi Otsuka said: “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. 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
Hope Bancorp expects the transaction to deliver significant financial benefits that will advance its goals of delivering sustainable growth and creating durable long-term value for shareholders. Key financial benefits of the transaction include:
- Significant Earnings Accretion: Transaction is expected to be over 20% accretive to Hope Bancorp’s earnings per share in 2027.
- Short Tangible Book Value Earn-back: Tangible book value dilution at closing is expected to be approximately 4.5% and earned back in approximately two years.
- Capital Deployment and Profitability Enhancement: All-cash transaction optimizes capital and improves anticipated tangible returns on equity to approximately 12% in 2027.
- Diversified Core Deposit Base: Transaction enhances Hope Bancorp’s deposit base while lowering its overall cost of deposits. Noninterest bearing demand deposits made up 22% of the CBU’s deposit base as of December 31, 2025, and time deposits made up only 3% of the CBU’s deposits. The addition of the Japanese Banking Division provides a significant source of core deposits and customer expansion and growth, and the addition of specialized deposit verticals, including Trust and Estate Banking, expands Hope’s deposit capabilities.
- Attractive Balance Sheet Growth: Transaction expected to add $2.5 billion in loans across commercial and commercial real estate and $2.7 billion in deposits with a strong mix of non-maturity deposits.
Shared Culture of Meeting the Unique Needs of Our Clients
A key strength of this combination is the shared commitment to relationship-based banking, responsive service, and long-term support for the customers and communities both organizations serve. The transaction brings together experienced bankers with deep expertise across commercial banking, operations and relationship management, positioning the combined company to better serve clients through deeper relationships, broader capabilities and immediate execution.
Transaction Details
Under the terms of the definitive agreement, net assets purchased will be settled in an all-cash transaction. The acquisition includes the CBU’s loan portfolio and deposits.
The transaction has been approved unanimously by the Boards of Directors of Hope Bancorp and Bank of Hope as well as SMBC Americas Holdings, Inc. and SMBC MANUBANK and is expected to close in the second half of 2026, subject to customary regulatory approvals and the satisfaction of other customary closing conditions.
For additional information about the transaction, an investor presentation highlighting its strategic and financial rationale will be available on Hope Bancorp’s investor relations website at https://www.ir-hopebancorp.com/.
Keefe Bruyette and Woods, Inc, a Stifel Company is acting as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is acting as a legal advisor to Hope. RBC Capital Markets is acting as exclusive financial advisor and Davis Polk & Wardwell LLP as legal advisor to SMBC.
