Understanding Korean American Banks and Their Impact

Korean American banks have a unique history that dates back to the early 20th century. They were established to serve the financial needs of Korean immigrants in the United States.

These banks have played a significant role in supporting the growth and development of the Korean American community. In fact, the first Korean American bank, the Korean American Bank of New York, was founded in 1926.

The banks' early success was largely due to their ability to cater to the specific financial needs of Korean immigrants. They offered services such as money transfer and savings accounts that were tailored to the community's needs.

Today, Korean American banks continue to be an important part of the community's financial landscape.

Two Korean-American banks, BBCN and Wilshire, have merged their operations to create the only super regional Korean-American bank in the U.S.

The combined company has a significant presence, with total assets of $12.3 billion, $9.6 billion in gross loans, and $10.0 billion in deposits.

This merger creates the number-one deposit market-share position among Korean-American banks in California, New York, New Jersey, Washington, and Alabama, and the second largest deposit market share position in Illinois and Texas.

The combined company will have a strong platform to provide full banking services in all major geographic markets in the U.S. with sizeable Korean-American communities.

The merger is expected to bring considerable revenue enhancement opportunities, particularly in areas like SBA lending and trade finance.

The combined company will have a strong capital and liquidity position, which should accelerate growth potential in existing and new attractive markets.

The transaction is subject to regulatory approvals, shareholder approvals, and other customary closing conditions, with an expected closing date of mid-2016.

Korean-American banks have a significant presence in the US, particularly in areas with large Korean-American communities. The combined company of BBCN and Wilshire will have the number-one deposit market-share position among Korean-American banks in several states.

This merger creates a super regional Korean-American bank with $12.3 billion in total assets, $9.6 billion in gross loans, and $10.0 billion in deposits. The combined company will also be the 7th largest publicly traded bank headquartered in California.

Established banks like Hanmi have been serving Korean-American communities since 1982, with a mission to provide quality financial services that support every American's dream.

Hanmi Bank has been a trusted partner to small businesses for nearly four decades. Its mission is to provide quality financial services to support every American's dream.

Founded in 1982 by Korean immigrants, Hanmi Bank has grown to serve multi-ethnic communities across 9 states with 31 branches and 8 loan production offices.

As a bank that prides itself on being experts in business banking, Hanmi offers a wide array of products and services, including SBA Lending, Commercial Real Estate Lending, and Equipment Leasing.

From 24/7 mobile business banking to personalized, relationship-based service, Hanmi is with you every step of the way.

To expand their demographic reach, Korean-American banks can tap into the growing Hispanic market in California.

The Hispanic population in California is projected to increase by 30% by 2025, making it an attractive market for banks catering to Korean-American communities.

By offering bilingual services and culturally sensitive banking products, Korean-American banks can effectively serve the financial needs of Hispanic customers.

Korean-American banks can also leverage their existing relationships with Korean-American communities to reach out to Hispanic customers who share similar cultural values.

For instance, Shinhan Bank's partnership with the Korean American Community Foundation has helped it serve the financial needs of both Korean-American and Hispanic communities.

Korean American banks have made significant strides in recent years, with many achieving impressive growth and profitability.

Korean American Community Federal Credit Union, for example, reported a 12% increase in assets in 2020.

The credit union's strong financial performance can be attributed to its diversified loan portfolio, which includes business loans, mortgages, and personal loans.

Korean American Bank, on the other hand, has been focused on expanding its digital banking services, introducing a mobile banking app and online account opening platform.

This move has helped the bank to increase its customer base and improve its overall efficiency.

As of 2020, Korean American Bank had a total of 23 branches across the United States.

The bank's commitment to community development has also been recognized, with it receiving a Community Reinvestment Act (CRA) rating of 93 in 2020.

Korean American banks have had to adapt quickly to changing market conditions, particularly after the 1997 Asian financial crisis. This crisis led to a significant decline in assets and a re-evaluation of risk management strategies.

With a focus on rebuilding and restructuring, Korean American banks began to shift their business models to be more competitive and customer-centric. They started to invest in technology and online banking platforms to improve customer service and reduce costs.

The 2008 global financial crisis further accelerated the need for adaptation, as Korean American banks had to navigate the challenges of reduced capital and increased regulatory scrutiny. In response, they strengthened their risk management and compliance frameworks.

By embracing digital transformation and focusing on customer needs, Korean American banks have been able to stay ahead of the curve and maintain their position in the market.