Bank of Manhattan, which is in the process of merging with Irvine-based Plaza Bank, has agreed to sell its mortgage business to Wilshire Bancorp Inc. in Los Angeles.
Bank of Manhattan’s mortgage lending division was formed in 2010 and has originated more than $3 billion in home loans since 2012, according to the El Segundo-based bank, which itself was founded in 2007.
“We … are looking forward to intensifying our focus on our core competency—commercial and private banking,” said Rick Sowers, president and chief operating officer of Bank of Manhattan.
Sowers is expected to join Plaza as an executive vice president, and the combined company will be headed by current Plaza Chief Executive Gene Galloway. It also will keep its headquarters in Irvine.
Wilshire has about $4 billion in assets and is among the largest banks in the U.S. that cater to Korean-Americans. Its shares slipped half a percent during the day to a market capitalization of about $749 million.
Plaza last month announced that it’s buying Bank of Manhattan for $70.4 million. Plaza Bancorp has been set up as a holding company to serve as an umbrella for Plaza Bank, Bank of Manhattan and its parent Manhattan Bancorp.
Plaza has about $525 million in assets, and Bank of Manhattan about $496 million. Both banks are portfolio companies of the Carpenter Community BancFund, a private equity bank holding company in Irvine.
