Hope Bancorp Stock Price, News & Analysis

Blue Hill Advisors has issued an open letter to Territorial Bancorp shareholders regarding their $12.50 per share cash offer, representing a 25% premium over Hope Bancorp's current offer. The letter challenges Territorial's Board's reluctance to engage with their proposal, arguing that the Hope merger agreement allows exploration of potentially superior offers. Blue Hill emphasizes that Hope cannot terminate the deal if the Board conducts due diligence on their proposal. The investor group urges shareholders to vote against the Hope sale at the November 6 meeting, allowing time for proper evaluation of their offer, which includes an option for existing holders to retain up to 49% ownership.

Hope Bancorp (NASDAQ: HOPE) has announced a quarterly cash dividend of $0.14 per common share. The dividend will be payable on or about November 21, 2024, to stockholders of record as of the close of business on November 7, 2024.

Hope Bancorp (NASDAQ: HOPE) reported Q3 2024 net income of $24.2 million, or $0.20 per diluted share, compared to $25.3 million in Q2 2024. Net interest income was $104.8 million, with interest income rising to $235.1 million. Customer deposits grew 11% annualized, while loans receivable increased 2% annualized. The company's total capital ratio strengthened to 14.8%, with tangible equity ratio at 10.1%. Nonperforming assets increased to $103.8 million, representing 0.60% of total assets. The allowance for credit losses was $153.3 million, with a coverage ratio of 1.13% of loans receivable.

Yakira Capital Management, holding 1.23% of Territorial Bancorp (TBNK) shares, criticizes the Board's rejection of Blue Hill Advisors' acquisition offer in favor of Hope Bancorp (HOPE) merger. The Blue Hill offer represents a 25% premium over the Hope deal. Yakira refutes the Board's concerns about the Blue Hill proposal, including tax implications and dividend considerations. The investment manager argues that the Board's refusal to negotiate with Blue Hill, despite potential superior returns for shareholders, may constitute a breach of fiduciary duty. Yakira confirms its intention to vote against the Hope deal.

Former Hawaii banking executive Allan Landon, Blue Hill Advisors, and other leading bank investors have reaffirmed their commitment to completing a transaction with Territorial Bancorp Inc. They stand ready to execute their proposed cash transaction if shareholders vote down the sale to Hope Bancorp, Inc. at the adjourned Special Meeting on November 6, 2024. The investors urge Territorial shareholders to focus on five key points:

1. The Board's sale process was flawed
2. The investors' offer is likely a superior proposal
3. The Board rejects requests to discuss the proposal
4. Territorial's prospects have improved dramatically
5. ISS recommends voting against the Hope deal

The investors' $12.50 cash proposal represents a substantial premium to the current value of the Hope merger consideration. They encourage shareholders to vote AGAINST the Hope sale and contact Blue Hill Advisors for more information.

Hope Bancorp (NASDAQ: HOPE) has announced it will report its 2024 third quarter and nine-month financial results on Monday, October 28, 2024, before markets open. The company will host a conference call and webcast on the same day at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to discuss the results.

Institutional investors and analysts can join the call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the "Hope Bancorp Call." Other interested parties can participate via a live webcast available on Hope Bancorp's investor relations website. A presentation deck will be available on the website to accompany the earnings call.

The archived webcast will remain accessible on the investor relations website for one year after the live event. A telephonic replay will be available for one week through November 4, 2024, using the replay access code 6344072.

Blue Hill Advisors and former Hawaii banking executive Allan Landon have reiterated their $12.50 per share cash offer for Territorial Bancorp Inc. (NASDAQ: TBNK), maintaining it as superior to the proposed merger with Hope Bancorp, Inc. (NASDAQ: HOPE). They urge shareholders to oppose the Hope merger, citing it as the second lowest valuation of an announced bank merger since 1983.

The investors argue that the Hope merger undervalues Territorial and would result in significant dilution for shareholders. They refute Territorial's claims about the merger's benefits, stating that it would actually result in a 7% discount to Territorial's current share price and lead to substantial job cuts.

Blue Hill Advisors emphasizes that their proposal offers a 26% premium and the opportunity for shareholders to participate in Territorial's recovery. They call on Territorial's Board to engage with their offer and urge shareholders to vote against the Hope merger at the upcoming November 6 special meeting.

ISS, a leading proxy advisory firm, has recommended that Territorial Bancorp shareholders vote AGAINST the proposed merger with Hope Bancorp at the upcoming Special Meeting on October 10, 2024. ISS concludes that the merger does not appear to maximize value for shareholders. The report cites concerns about the lack of a robust sales process, merger agreement restrictions, and the improved outlook for financial institutions.

Blue Hill Advisors and former Hawaii banking executive Allan Landon have presented a competing offer, which ISS considers sufficiently credible to mitigate the downside risk of rejecting the Hope merger. Blue Hill's proposal includes a 70% tender offer, allowing shareholders to receive a cash premium while maintaining a 30% interest in the company.

Blue Hill and its partners remain committed to their superior proposal, which they believe will benefit all of Territorial's stakeholders. Shareholders are encouraged to contact Blue Hill for more information or express their support for this proposal to Territorial's Board.

Blue Hill Advisors and former Hawaii banking executive Allan Landon have increased their cash offer for Territorial Bancorp from $12.00 to $12.50 per share, representing a 27% premium over Hope Bancorp's proposed takeover. Blue Hill released a presentation titled "A Better Deal for Territorial," available at www.NewTerritorial.com, highlighting the superior value of their proposal. The investors behind the offer manage over $3 billion in assets and have a history of successful bank transactions. Territorial shareholders can change their vote before the October 10 special meeting if they wish to support Blue Hill's proposal.