Dive Brief:
- Los Angeles-based Bank of Hope said Tuesday it’s acquiring the California-based commercial banking unit of SMBC Manubank, a subsidiary of SMBC Americas Holdings and Sumitomo Mitsui Banking Corporation, in an all-cash transaction.
- Terms of the deal weren’t disclosed; Bank of Hope is purchasing assets and assuming liabilities on a net book value basis. The transaction is expected to close in the second half of 2026, Bank of Hope said in a Tuesday release.
- With the acquisition, the $18.5 billion-asset lender is set to take on eight branches in Southern California and about $2.5 billion in commercial and commercial real estate loans and $2.7 billion in deposits, based on balances as of December 2025.
Dive Insight:
The two also intend to strike a partnership to provide commercial and consumer banking services to SMBC’s midsize Japanese businesses and retail customers in the U.S.
The deal fits with Bank of Hope’s strategy to bolster its commercial banking unit and core funding, and expand products and services for Asian businesses in the U.S., the bank said Tuesday.
The commercial banking unit includes a Japanese banking division; diversified industries, which serves middle-market and larger mid-corporate clients; franchise finance, targeting quick service restaurant franchisees; CRE; Small Business Administration loans; and a specialty deposit group, which includes trust and estate banking, Bank of Hope said.
Bank of Hope sees particular promise in combining its Korean subsidiary group with the Japanese banking division, which has “deep relationships” with Japanese businesses operating in the states, the acquirer said. Through that combination, the bank is targeting growth in cross-border middle market banking across the U.S. and Hawaii, Bank of Hope CEO Kevin Kim said.
Bank of Hope counts 45 branches across California, New York, New Jersey, Washington, Texas, Illinois, Alabama and Georgia, and 29 branches in Hawaii under the Territorial Savings name.
The deal “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,” Kim said in the release.
The purchase is expected to be about 20% accretive to Hope Bancorp’s earnings per share in 2027. Tangible book value dilution is projected to be about 4.5% with a two-year earnback period. The deal is anticipated to push return on tangible common equity to about 12% in 2027.
SMBC Americas Division CEO Hirofumi Otsuka expressed confidence 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.”
In the Americas, SMBC has sought to narrow its focus and said the deal enables the company “to further optimize its resources,” the firm said in its own release.
A spokesperson for Bank of Hope declined to provide deal terms or specify the number of SMBC employees the bank is taking on.
In January, SMBC announced it would be winding down Jenius Bank, SMBC Manubank’s digital banking unit.
On Feb. 12, Las Vegas-based Axos Financial said in a regulatory filing it would acquire all of Jenius Bank’s $2.6 billion in U.S. consumer deposits; that deal received approval from the Office of the Comptroller of the Currency on March 19, and is projected to close this quarter, Axos said in a subsequent filing.
“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,” Otsuka said.
SMBC said it views Bank of Hope as “the most appropriate buyer” of the commercial banking unit based on the Los Angeles-based lender’s aim to expand its Asian client base and its commitment to retaining SMBC employees.
The announcement comes almost exactly one year after Bank of Hope completed its merger with Honolulu-based Territorial Bancorp. That deal faced repeated challenges as $2.17 billion-asset Territorial fielded unsolicited offers from Blue Hill Advisors, which the bank persistently rejected.
