Hope Bancorp Receives Regulatory Approvals for Its Merger With Territorial Bancorp
Hope Bancorp (NASDAQ: HOPE) and Territorial Bancorp have received all regulatory approvals for their previously announced merger, expected to complete in April 2025. The merged entity will operate in Hawaii under the trade name 'Territorial Savings, a division of Bank of Hope', maintaining Territorial's century-old legacy and community commitment.
The merger aims to create the largest regional bank serving multi-cultural customers across continental US and Hawaiian Islands. The combined organization will benefit from Territorial's stable, low-cost deposit base and residential mortgage portfolio with strong asset quality, strengthening Hope Bancorp's position as a leading Asian American bank.
Post-merger, Territorial's operations will leverage the combined company's expanded balance sheet, resources, and broader banking services portfolio to enhance market share and customer experience.
Hope Bancorp (NASDAQ: HOPE) e Territorial Bancorp hanno ricevuto tutte le approvazioni regolatorie per la loro fusione precedentemente annunciata, prevista per aprile 2025. L'entità risultante opererà alle Hawaii sotto il nome commerciale 'Territorial Savings, una divisione di Bank of Hope', mantenendo l'eredità secolare di Territorial e il suo impegno verso la comunità.
La fusione mira a creare la più grande banca regionale che serve clienti multiculturali negli Stati Uniti continentali e nelle Isole Hawaii. L'organizzazione combinata beneficerà della base di depositi stabile e a basso costo di Territorial e del suo portafoglio di mutui residenziali con una forte qualità degli attivi, rafforzando la posizione di Hope Bancorp come una delle principali banche asiatico-americane.
Dopo la fusione, le operazioni di Territorial sfrutteranno il bilancio espanso dell'azienda combinata, le risorse e un portafoglio di servizi bancari più ampio per migliorare la quota di mercato e l'esperienza del cliente.
Hope Bancorp (NASDAQ: HOPE) y Territorial Bancorp han recibido todas las aprobaciones regulatorias para su fusión previamente anunciada, que se espera completar en abril de 2025. La entidad fusionada operará en Hawái bajo el nombre comercial 'Territorial Savings, una división de Bank of Hope', manteniendo el legado centenario de Territorial y su compromiso con la comunidad.
La fusión tiene como objetivo crear el banco regional más grande que sirva a clientes multiculturales en los Estados Unidos continentales y en las Islas Hawái. La organización combinada se beneficiará de la base de depósitos estable y de bajo costo de Territorial y de su cartera de hipotecas residenciales con una fuerte calidad de activos, fortaleciendo la posición de Hope Bancorp como uno de los principales bancos asiático-americanos.
Después de la fusión, las operaciones de Territorial aprovecharán el balance ampliado de la empresa combinada, los recursos y un portafolio de servicios bancarios más amplio para mejorar la cuota de mercado y la experiencia del cliente.
Hope Bancorp (NASDAQ: HOPE)와 Territorial Bancorp는 이전에 발표된 합병에 대한 모든 규제 승인을 받았으며, 이는 2025년 4월에 완료될 것으로 예상됩니다. 합병된 법인은 'Territorial Savings, a division of Bank of Hope'라는 상호로 하와이에서 운영되며, Territorial의 100년 전통과 지역 사회에 대한 헌신을 유지합니다.
이번 합병은 미국 본토와 하와이 제도 전역의 다문화 고객을 대상으로 하는 가장 큰 지역 은행을 만드는 것을 목표로 합니다. 통합된 조직은 Territorial의 안정적이고 저렴한 예금 기반과 강력한 자산 품질을 가진 주택 담보 대출 포트폴리오의 혜택을 누리며, Hope Bancorp의 아시아계 미국인 은행으로서의 입지를 강화합니다.
합병 후, Territorial의 운영은 통합된 회사의 확장된 대차대조표, 자원 및 더 넓은 은행 서비스 포트폴리오를 활용하여 시장 점유율과 고객 경험을 향상시킬 것입니다.
Hope Bancorp (NASDAQ: HOPE) et Territorial Bancorp ont reçu toutes les approbations réglementaires pour leur fusion précédemment annoncée, qui devrait être finalisée en avril 2025. L'entité fusionnée opérera à Hawaï sous le nom commercial 'Territorial Savings, une division de Bank of Hope', préservant l'héritage séculaire de Territorial et son engagement envers la communauté.
La fusion vise à créer la plus grande banque régionale servant des clients multiculturels à travers les États-Unis continentaux et les îles hawaïennes. L'organisation combinée bénéficiera de la base de dépôts stable et à faible coût de Territorial et de son portefeuille de prêts hypothécaires résidentiels de haute qualité, renforçant ainsi la position de Hope Bancorp en tant que banque asiatique-américaine de premier plan.
Après la fusion, les opérations de Territorial tireront parti du bilan élargi de l'entreprise combinée, des ressources et d'un portefeuille de services bancaires plus vaste pour améliorer la part de marché et l'expérience client.
Hope Bancorp (NASDAQ: HOPE) und Territorial Bancorp haben alle regulatorischen Genehmigungen für ihre zuvor angekündigte Fusion erhalten, die voraussichtlich im April 2025 abgeschlossen wird. Die fusionierte Einheit wird unter dem Handelsnamen 'Territorial Savings, eine Abteilung der Bank of Hope' in Hawaii tätig sein und das jahrhundertealte Erbe von Territorial sowie das Engagement für die Gemeinschaft aufrechterhalten.
Die Fusion zielt darauf ab, die größte Regionalbank zu schaffen, die multikulturelle Kunden in den kontinentalen USA und auf den Hawaii-Inseln bedient. Die kombinierte Organisation wird von Territorials stabiler, kostengünstiger Einlagenbasis und dem Wohnungsbaudarlehensportfolio mit starker Vermögensqualität profitieren, was die Position von Hope Bancorp als führende asiatisch-amerikanische Bank stärkt.
Nach der Fusion wird Territorials Betrieb die erweiterten Bilanz, Ressourcen und das breitere Portfolio an Bankdienstleistungen des kombinierten Unternehmens nutzen, um den Marktanteil und die Kundenerfahrung zu verbessern.
- Creation of largest regional multicultural bank
- Addition of stable, low-cost deposit base
- Diversification of loan mix with quality residential mortgage portfolio
- Enhanced market presence in strategic Hawaiian market
- Access to larger balance sheet and expanded banking services
- Integration risks during merger transition
- Potential cultural integration challenges between organizations
Insights
The regulatory approval for Hope Bancorp's merger with Territorial Bancorp represents a critical milestone, substantially increasing the likelihood of deal completion by April 2025. This transaction strategically positions Hope to strengthen its standing as a leading Asian American bank while simultaneously expanding into the Hawaiian market.
The deal architecture reveals thoughtful strategic planning. By preserving the century-old Territorial brand as "Territorial Savings, a division of Bank of Hope," the acquirer demonstrates recognition of brand equity and customer loyalty factors unique to island markets. This approach balances scale benefits with community connection preservation.
For Hope shareholders, the transaction offers multiple value drivers: geographic diversification beyond its current footprint, addition of a stable low-cost deposit base (particularly valuable in the current rate environment), and loan portfolio diversification through Territorial's residential mortgage assets. The emphasis on Territorial's "excellent asset quality" suggests a conservative acquisition approach rather than a high-risk growth play.
For Territorial stakeholders, the combination addresses the growth constraints and regulatory burden challenges facing smaller institutions by providing access to a larger balance sheet and broader product capabilities. The regional bank landscape continues consolidating as regulatory costs and technology investments favor scale advantages.
With regulatory hurdles cleared, investor focus should now shift to integration execution risks, potential culture compatibility challenges between the mainland and Hawaiian operations, and the realization of cross-selling opportunities that will ultimately determine whether this merger delivers the promised strategic benefits.
This regulatory approval solidifies Hope Bancorp's strategic expansion into Hawaii through Territorial acquisition, creating what they position as "the largest regional bank catering to multi-cultural customers" across both mainland US and Hawaiian markets. The transaction represents classic banking consolidation logic with complementary strengths.
The deal's structure retains the "Territorial Savings" identity, demonstrating sensitivity to the unique characteristics of the Hawaiian banking market where community relationships and local brand recognition carry significant value. This approach mitigates customer attrition risk that typically accompanies rebranding exercises.
From a balance sheet perspective, the combination appears fundamentally complementary. Hope gains access to Territorial's stable deposit franchise - particularly valuable as deposit competition intensifies across banking markets. Simultaneously, the addition of Territorial's residential mortgage portfolio provides loan mix diversification for Hope's primarily commercial-focused loan book.
The transaction timing coincides with broader industry consolidation pressures facing regional banks. Smaller institutions like Territorial increasingly find themselves caught between the scale advantages of larger regionals and the specialized focus of community banks. For Hope, this acquisition represents geographic diversification beyond its existing markets into a relatively stable Hawaii banking environment.
While management highlights strategic rationale, successful execution will ultimately determine shareholder value creation. Key metrics to monitor post-closing include deposit retention rates, cross-sell success of Hope's commercial products to Territorial's primarily consumer customer base, and the cultural integration between mainland and Hawaiian operations.
“We are very pleased to have received the required regulatory approvals,” stated Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp. “We believe this combination will strengthen our position as one of the leading Asian American banks in the country, add a stable, low-cost deposit base to the combined company, and accelerate the diversification of our loan mix with the addition of a residential mortgage portfolio with excellent asset quality. We look forward to building on Territorial’s legacy of exemplary customer service and support of local communities in a strategically important market.”
“This combination effectively enhances the opportunity to grow Territorial’s market share and elevate the customer experience by leveraging the combined company’s larger balance sheet, greater resources and more extensive array of banking products and services,” said Allan S. Kitagawa, Chairman, President and Chief Executive Officer of Territorial. “We expect a seamless transition for our customers, and we believe our employees and shareholders stand to enjoy greater long-term benefits as part of a larger organization.”
The Merger is expected to be completed at the beginning of April 2025, subject to the satisfaction of customary closing conditions.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the first and only super regional Korean American bank in
About Territorial Bancorp Inc.
Territorial Bancorp Inc. (NASDAQ: TBNK), headquartered in
Forward-Looking Statements
Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward-looking statements, each of Hope Bancorp and Territorial claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp and Territorial’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. The closing of the Merger is subject to customary closing conditions. There is no assurance that such conditions will be met or that the pending Merger will be consummated within the expected time frame, or at all. If the transaction is consummated, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Hope Bancorp and Territorial and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; and deposit attrition, operating costs, customer loss and business disruption following the Merger, including difficulties in maintaining relationships with employees and customers, may be greater than expected. Other risks and uncertainties include, but are not limited to: possible renewed deterioration in economic conditions in Hope Bancorp’s or Territorial’s areas of operation or elsewhere; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying Hope Bancorp’s or Territorial’s allowances for credit losses; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp or Territorial; the risk that any announcements relating to the pending transaction could have adverse effects on the market price of the common stock of Hope Bancorp or Territorial; diversion of either bank’s management’s attention from ongoing business operations and opportunities; and risks from natural disasters. For additional information concerning these and other risk factors, see Hope Bancorp’s and Territorial’s most recent Annual Report on Form 10-K. Each of Hope Bancorp and Territorial does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250303157285/en/
For Hope Bancorp, Inc.
Julianna Balicka
EVP & Chief Financial Officer
213-235-3235
julianna.balicka@bankofhope.com
Angie Yang
SVP, Director of Investor Relations &
Corporate Communications
213-251-2219
angie.yang@bankofhope.com
For Territorial Bancorp Inc.
Walter Ida
SVP, Director of Investor Relations
808-946-1400
walter.ida@territorialsavings.net
Source: Hope Bancorp, Inc.
FAQ
When will the Hope Bancorp (HOPE) and Territorial Bancorp merger complete?
How will Territorial's brand operate after the merger with Hope Bancorp (HOPE)?
What are the key benefits of the Hope Bancorp (HOPE) merger with Territorial?
What changes will Territorial customers experience after the Hope Bancorp (HOPE) merger?
