Hope Bancorp acquires SMBC MANUBANK CBU unit

Hope Bancorp, parent of Bank of Hope, has agreed to acquire the commercial banking unit (CBU) of SMBC MANUBANK, a subsidiary of Sumitomo Mitsui Banking Corporation, in an all-cash transaction aimed at strengthening its commercial banking capabilities and cross-border offering.

The deal includes approximately $2.5 billion in loans and $2.7 billion in deposits, based on balances as of December 31, 2025, along with eight branches in Southern California. The acquisition is expected to close in the second half of 2026, subject to regulatory approvals.

In parallel, Bank of Hope and SMBC plan to establish a collaboration agreement to serve Japanese mid-sized businesses and retail customers requiring banking services in the United States. The partnership is intended to position Bank of Hope as a domestic banking partner for SMBC’s client base, particularly in the middle-market segment.

The acquired unit spans multiple business lines, including Japanese corporate banking, diversified industries, franchise finance, commercial real estate, SBA lending, and specialty deposits such as trust and estate banking. The integration of SMBC MANUBANK’s Japanese Banking Division with Bank of Hope’s Korean-focused operations is expected to enhance its ability to serve Asian multinational businesses operating in the US.

“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.

Financially, the transaction is expected to be more than 20% accretive to earnings per share by 2027, with tangible book value dilution of approximately 4.5% at closing, recoverable within two years. The deal is also expected to improve returns on equity to around 12% by 2027.

The transaction highlights a broader trend of regional banks pursuing targeted acquisitions to scale specialised capabilities, while global institutions refine their focus on core business segments.