(코리아타운뉴스) Korean banks’ assets at $27.7 billion

The number of banks has decreased
but they have all grown their assets

Banks headquartered in Koreatown are essentially the blood vessels of the Korean-American economy. They are largely the most notable contributors to the growth of Koreatown’s economy, making themselves the yardstick of where Korean-Americans stand in terms of the economics.

The Korea Daily has chosen to compare the status of Korean-American banks in 2013 and now. The research in this article has been drawn from the 2016’s fourth quarter call report submitted to FDIC as well as interviews with employees working at the banks.

Compared to four years ago, there are now less Korean-American banks. However, they have all grown their assets in the last four years. The banking industry has shrunk considerably since the economic crisis in 2008, but began growing again from 2013. That growth has been steady for the last four years.

There were 27 Korean-American banks at one point, but that number was brought down to 23 by June 2013. Today, there are just 18.

When Bank of Hope’s merger is finalized, that number will go down to 17. That marks a 20 percent decrease from four years ago.

Most of the banks that are no longer in business either failed to survive amid economic difficulties or have closed after a merger and acquisition. Even Bank of Hope, now the largest Korean-American bank in the country, was born after a merger and acquisition between Wilshire Bank and BBCN Bank.

Although the number of banks has decreased, their assets have gone up. The total assets among Korean banks was at $20.1 billion in 2013, but has since increased to $27.7 billion. That is also a $6.7 billion increase from the all-time high of $2.08 billion in 2009.

Bank of Hope owns 48 percent of all Korean-American banks’ assets with $13.4 billion with Hanmi Bank coming in at second with $4.6 billion. Six other banks, including Shinhan America, Metro City and Pacific all had assets north of $1 billion.

Including all of the branches, there are currently 215 Korean bank locations. As many banks are seeking expansion, that number is likely to increase further.

From 2010 to 2012, the Korean banks have been on a slight decline. However, the rebound began in 2012 and has been going strong for the last four to five years.

Such a growth has naturally led to rise in deposits and loans. As of late 2016, the total deposited funds accounted for $22.7 billion, while loans also reached $2.18 billion. Of the 18 banks, 16 were profitable by the end of 2016. Only Noah Bank in Pennsylvania and New Jersey’s KEB Hana Bank were in the red.

“Merger and restructuring have been the focal point of the change within the Korean-American banking industry,” said an employee at a Korean bank. “Banks in Koreatown can now be divided into large scale and mid to smaller size banks, so consumers now have a wider range of selection to choose from.”


By Sungcheol Jin