Hope BancorpInc., parent of Los Angeles-based , plans to complete itsfirst phase of branch consolidations by the end of 2016 and expand its footprintin the Houston market in the first quarter of 2017.
The company plans to consolidate 12 branches in the SouthernCalifornia and New York/New Jersey markets by the end of 2016, because ofoverlapping presences following the merger of BBCN Bancorp and on July 29 thatcreated the company.
Eight affected branches are in the Southern Californiamarket. The company plans to transform two of the branches into alternativebusiness and corporate offices.
Among the four affected branches in the New York/New Jerseymarkets, the company plans to convert one branch into a commercial lendingunit. After the first phase of consolidations, the bank will have 73full-service branches in the U.S.
The company anticipates a one-time pretax expense ofapproximately $2.1 million in the second half in connection with theconsolidations, but expects to save approximately $11 million before tax on anannual basis.
Hope Bancorp said it expects to close the second phase ofbranch consolidations in the first half of 2017.
Furthermore, Hope Bancorp plans to start construction of thebank's second full-service branch office in the Houston market Sept. 29. Thecompany expects the branch to be open for business in the spring of 2017.