Latest news with #California-chartered
Business Journals
01-06-2025
- Business
- Business Journals
Uneven ground: Why state-chartered banks bear the brunt of proposed legislation
The United States has one of the most diverse and robust banking sectors in the world and is represented by banks of all sizes that serve every segment of the American economy. The nation's approximately 4,500 banks include community banks, midsize banks, regional banks, and large banks. Banks of every size add unique value and are critically important to our financial system and our economy. While banks may have different business models and strengths, institutions succeed when they meet the needs of their communities. Part of what makes the U.S. banking system special is the dual banking system which provides bankers with a choice of operating under a national charter or a state charter. Unfortunately, the California state charter is under attack and its value proposition is diminishing. Just this year, several California legislative measures target state-chartered banks or will be preempted limiting the measure's application. One such measure allows the commissioner of the Department of Financial Protection and Innovation to enforce violations of the federal Dodd-Frank Act (DFA) through unfair, deceptive, abusive acts or practices claims. Proponents claim that this measure is necessary because the Consumer Financial Protection Bureau (CFPB) under President Donald Trump's administration will not enforce DFA. The reality is that the commissioner already possesses this authority; however, to deploy it, the commissioner must provide notice to the CFPB, which may become a party to the action and/or can seek to remove the action to federal court. The rationale behind this potential intervention is to avoid duplicative and uncoordinated enforcement actions. Large big box retailers are pushing a measure to limit the charging of an interchange fee by prohibiting the fee being assessed against sales tax. These retailers need to remember the convenience and certainty credit card payments have provided them, and that the underlying infrastructure that facilitates these transactions has a cost. Additionally, interchange fees support low and no-cost bank accounts and credit card reward points programs that customers appreciate. The bill will be preempted for federally chartered banks, leaving its application to state-chartered banks. Another measure establishes a state-level Community Reinvestment Act (CRA) applicable to certain state-licensed entities, including California-chartered banks. This effort is duplicative and potentially contradictory to the federal CRA, which all banks are subject to. Rather than layering on top of state banks, the measure should be amended to apply solely to California-chartered credit unions, which do not have a federal CRA requirement, though they are depository institutions and may operate similarly to banks. As we have fiercely advocated for our member banks, we commonly hear legislators express appreciation for community banks. But with measures advancing like those described above, we are increasingly convinced that those are just words and that their actions prove otherwise. Banks are highly regulated entities and miraculously excel at finding a path to compliance on what seems to be a never-ending list of new laws and regulations. But there is a breaking point. Consolidation within the industry has been driven, in part, by over-regulation. Smaller community banks, just like small businesses, are struggling to keep up with overregulation and are finding that they must get to scale to survive the regulatory avalanche. We are gravely concerned that new laws and regulations will accelerate consolidation and may leave communities who need access to banking services in financial deserts. This unfortunate result could push the door more widely open to the less-regulated shadow banking industry where there is often less consumer protection. And because of the dual-banking system, banks can exercise their choice and operate under a national charter, which leaves the state with less oversight. If policymakers really care about the important role of community banks, as they have suggested, it's time they put a stop to efforts that could make the state charter less valuable.
Associated Press
02-04-2025
- Business
- Associated Press
Hope Bancorp Completes Merger With Territorial Bancorp
Hope Bancorp, Inc. ('Hope Bancorp') (NASDAQ: HOPE), the holding company of Bank of Hope, today announced the completion of its merger with Honolulu-based Territorial Bancorp Inc. ('Territorial'), the holding company for Territorial Savings Bank. Effective as of April 2, 2025, Territorial Savings Bank will operate under the trade name Territorial Savings, a division of Bank of Hope, preserving the 100-plus year legacy of the Territorial brand, culture and commitment to local communities. 'We are excited to have completed this combination and to officially welcome Territorial customers and team members to the Bank of Hope family,' stated Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp. 'With the addition of Territorial Savings, Bank of Hope has become the largest regional bank catering to multi-cultural customers across the continental United States and Hawaii.' Pursuant to the merger agreement, Territorial shareholders have the right to receive 0.8048 shares of Hope Bancorp common stock in exchange for each share of Territorial common stock they own. About Hope Bancorp, Inc. Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the only regional Korean American bank in the United States with $17.05 billion in total assets as of December 31, 2024. With the addition of Territorial Savings, a division of Bank of Hope, effective April 2, 2025, the Company became the largest regional bank catering to multi-cultural customers across the continental United States and Hawaii. Headquartered in Los Angeles, the Bank provides a full suite of commercial, corporate and consumer loans, deposit and fee-based products and services, including commercial and commercial real estate lending, SBA lending, residential mortgage and other consumer lending; treasury management services, foreign currency exchange solutions, interest rate derivative products, and international trade financing, among others. The Bank operates 46 full-service branches in California, New York, New Jersey, Washington, Texas, Illinois, New York, New Jersey, Alabama, and Georgia under the Bank of Hope banner, and 29 branches in Hawaii under the Territorial Savings banner. The Bank also operates SBA loan production offices, commercial loan production offices, and residential mortgage loan production offices throughout the United States, and a representative office in Seoul, South Korea. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to for Bank of Hope and for Territorial Savings, a division of Bank of Hope. By including the foregoing website address link, Hope Bancorp does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein. Forward-Looking Statements Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words 'will,' 'believes,' 'expects,' 'anticipates,' 'intends,' 'plans,' 'estimates' or similar expressions. With respect to any such forward-looking statements, Hope Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp's actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. Factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Hope Bancorp and Territorial and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; and deposit attrition, operating costs, customer loss and business disruption following the merger, including difficulties in maintaining relationships with employees and customers, may be greater than expected. Other risks and uncertainties include, but are not limited to: possible renewed deterioration in economic conditions in Hope Bancorp's areas of operation or elsewhere; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying Hope Bancorp's allowances for credit losses; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp; and risks from natural disasters. For additional information concerning these and other risk factors, see Hope Bancorp's most recent Annual Report on Form 10-K. Hope Bancorp does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law. Julianna Balicka 213-235-3235 Angie Yang 213-251-2219 INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE SOURCE: Hope Bancorp, Inc. Copyright Business Wire 2025. PUB: 04/02/2025 06:30 AM/DISC: 04/02/2025 06:30 AM
Associated Press
27-01-2025
- Business
- Associated Press
Hope Bancorp Declares Quarterly Cash Dividend of $0.14 Per Share
Hope Bancorp, Inc. (the 'Company') (NASDAQ: HOPE) today announced that its Board of Directors declared a quarterly cash dividend of $0.14 per common share. The dividend is payable on or about February 20, 2025, to all stockholders of record as of the close of business on February 6, 2025. About Hope Bancorp, Inc. Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the first and only super regional Korean American bank in the United States with $17.05 billion in total assets as of December 31, 2024. Headquartered in Los Angeles and serving a multi-ethnic population of customers across the nation, the Bank provides a full suite of commercial, corporate and consumer loans, including commercial and commercial real estate lending, SBA lending, residential mortgage and other consumer lending; deposit and fee-based products and services; international trade financing; and cash management services, foreign currency exchange solutions, and interest rate derivative products, among others. Bank of Hope operates 46 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Alabama, and Georgia. The Bank also operates SBA loan production offices, commercial loan production offices, and residential mortgage loan production offices in the United States; and a representative office in Seoul, Korea. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to By including the foregoing website address link, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein. 213-235-3235 [email protected] Yang 213-251-2219 SOURCE: Hope Bancorp, Inc. Copyright Business Wire 2025. PUB: 01/27/2025 07:32 AM/DISC: 01/27/2025 07:32 AM
