Korean American banks across the U.S. showed signs of recovery in the first quarter of 2025, shaking off last year’s sluggish performance.
Compared to the same period in 2024, total assets, loans, and deposits increased across the board. Net income, which had declined in both Q3 and Q4 last year, also showed a slight rebound in Q1.
According to Korea Daily’s analysis of Q1 2025 call reports submitted to the Federal Deposit Insurance Corporation (FDIC), the 15 Korean American banks posted a combined net income of $99.68 million.
▶ Net Income
The total net income of $99.68 million in Q1 2025 marks a 0.7% increase from $98.98 million in the same period last year. Seven banks recorded year-over-year net income growth.
Southern California-based banks accounted for $65.13 million in net income, or 65.3% of the total. Bank of Hope led the group with $24.29 million in net income, followed by Hanmi Bank with $19.65 million. Together, these two banks represented 44.1% of the combined total.
PCB Bank posted the highest year-over-year increase in net income, surging 63.1% to $7.93 million. US Metro Bank followed with a 62.4% rise to $2.9 million.
▶ Assets, Loans, and Deposits
The 15 banks’ combined assets reached $47.62 billion, up 1.8% from Q1 2024. Southern California-based banks held $33.67 billion in assets, accounting for 70.7% of the total. Banks in the Eastern U.S. saw a 7.5% increase in assets.
Six banks, including PCB Bank and Open Bank, posted double-digit asset growth. Notably, Hana Bank USA reported a 60.3% year-over-year increase in assets.
Total deposits came to $40.25 billion, up 3.9% from the same period last year. Deposit growth was stronger in the East (7.5%) than in the West (2.5%).
Total loans rose 3.3% year-over-year to $38.22 billion. Again, growth was more prominent in the East (8.3%) compared to the West (1.3%).
Banking industry insiders noted, “Although high interest rates and economic slowdown weighed on last year’s performance, banks are now positioning for recovery. The clearest sign is the increase in deposits, likely driven by declining interest rates.”
However, they cautioned that uncertainties remain, particularly with potential tariff policies under a Trump administration and rising concerns among consumers and businesses. “Rather than aggressive expansion, banks are likely to prioritize stable, sustainable growth strategies moving forward,” one source said.
[By WONHEE CHO]
