From early glory to present challenges: The story of Bank of Hope

Bank of Hope is building a unified network of banks through mergers — but is it enough?

Last week, we delved into the story of East West Bank in Southern California, founded by Chinese Americans in 1973, and how it evolved into SoCal’s largest publicly traded bank. Not all SoCal-based minority-owned regional banks, however, share this success story. While some began with strong foundations, they now face challenging conditions, particularly those that have been heavily invested in commercial real estate loans. Bank of Hope, a Korean-owned regional bank based in LA and a subsidiary of Hope Bancorp, finds itself in a similar predicament.

Genesis and the challenges encountered since

Originally founded as Wilshire Bank by Korean immigrants in 1980, the institution merged with BBCN Bank in July 2016 and was rebranded as Bank of Hope, with Hope Bancorp as its parent company. Initially centered on the Korean American community, the bank gradually expanded its lending to include other immigrant groups, a shift that signaled its growth. This evolution transitioned the institution from a traditional community bank into a regional bank that now serves consumers, small businesses, and commercial and corporate clients.

Mergers and acquisitions played a key role in the creation of Bank of Hope and remain central to its growth strategy. But its focus on commercial real estate loans has fueled much of its growth and expansion. Little did the bank know that the pandemic would have a major impact on its growth. The pandemic brought a sharp blow to small and mid-sized lenders, leaving the Bank of Hope burdened with a large number of problematic commercial real estate loans.

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