Bank of Hope is acquiring Hawaii-based Bank Territorial Savings Bank, expanding America’s largest Korean-American bank’s operations to Hawaii.
Bank of Hope’s holding company, Hope Bancorp, announced on April 29 that it has signed a definitive merger agreement with Territorial Bancorp, the holding company of Territorial Savings Bank.
Territorial shareholders will receive 0.8048 shares of Hope Bancorp common stock for each share of Territorial common stock held. Based on the closing price of Hope Bancorp’s common stock on April 26, 100% stock-for-stock transaction values $8.82 per share of Territorial common stock. The transaction is expected to be valued at $78.6 million.
Upon completion of the merger, Hope Bancorp shareholders are expected to own 94.4% of the company. The actual percentage and transaction amount will be determined at the closing of the transaction on the closing date. The transaction has now been approved by the boards of directors of each company and is expected to close later this year, subject to regulatory and shareholder approvals.
Upon closing, Territorial Savings Bank will continue to operate under the Territorial Savings Bank brand with a trade name of Bank of Hope.
“This merger will expand our footprint into Hawaii and position us as the leading Asian American bank in the country,” said Kevin Kim, president and CEO of Bank of Hope. “We believe that Territorial’s high-quality deposits, residential mortgage portfolio, and other core funding sources will effectively diversify our loans.”
Hope Bancorp also announced its first-quarter financial results and quarterly cash dividend. The bank reported total assets of $18.1 billion as of March 31 and first-quarter net income of $25.9 million. The dividend is 14 cents per share, payable on or about May 23 to all shareholders of record as of the close of business on May 9, 2024.
BY JAESUN SUH, HOONSIK WOO [suh.jaesun@koreadaily.com]
