Hope Bancorp and Territorial Bancorp Merger: Building a Banking Powerhouse for the Future (TBNK)

In a bold and strategic move, Hope Bancorp, Inc. and Territorial Bancorp Inc. have announced the final regulatory approval for their previously declared merger, setting the stage for a powerful new regional banking force. The combined institution will bridge mainland U.S. markets and Hawai‘i, creating a truly unique footprint aimed at serving multicultural communities with expanded capabilities and resources.

With both regulatory approval in the bag and enthusiastic support from shareholders, this 100% stock-for-stock merger is expected to close in early April 2025. Let’s unpack what this merger really means—for customers, employees, investors, and the broader banking landscape.

Who’s Merging and Why It Matters

Meet the Players:

Hope Bancorp, Inc. (NASDAQ: HOPE)Headquarters: Los Angeles, CAAssets: $17.05 billionBank of Hope is the only super regional Korean American bank in the U.S.
Territorial Bancorp Inc. (NASDAQ: TBNK)Headquarters: Honolulu, HIOrigin: Chartered in 1921Known for its strong community presence and 29-branch footprint across Hawai‘i

This merger aims to combine the strengths of both: Hope’s robust multi-state infrastructure and cultural reach, and Territorial’s century-long community roots and stable deposit base in Hawai‘i.

Key Benefits of the Merger

Let’s break down the big wins:

For Shareholders:

Approximately 25% premium on TBNK’s stock prior to the announcement
100% tax-free stock-for-stock exchange
Fixed ratio: 0.8048 shares of HOPE for every share of TBNK
Significant dividend boost: From $0.01 to $0.11 per share—a 1,000%+ increase
$10.5 million in expected annual cost savings and synergies

For Customers:

Access to enhanced banking services—from SBA loans to international financing
Local staff remains in place, especially important in community-centric Hawai‘i
Improved technology platforms for better digital experiences

For Employees:

Job security, especially for customer-facing staff
Career growth across an expanded network
Continued competitive benefits and compensation

A Unique Multicultural Banking Network

Once merged, the combined entity will have:

More than 70 branches across states like California, New York, Texas, and a strong presence in Hawai‘i
A diversified loan portfolio including residential mortgage, commercial, and SBA lending
A balanced deposit base sourced from multiple geographies
Services tailored for Asian American, multicultural, and local communities

Hope Bancorp CEO Kevin S. Kim emphasized this vision, noting the combined bank’s strategic advantage in “accelerating loan diversification” while preserving the Territorial Savings brand in Hawai‘i.

The Blue Hill Drama: Why Hope Bancorp Won

You can’t talk about this merger without mentioning Blue Hill—a mysterious, newly-formed entity that attempted a competing offer.

But here’s where things fell apart for Blue Hill:

No committed financing
Lack of transparency on investors, governance, and leadership
Residential address as HQ (yes, a literal house in Hudson, NY)
No signs of regulatory approval
High risk of job cuts, decreased transparency, and long-term instability

In contrast, Hope offered a fully transparent, shareholder-friendly deal with proven leadership, solid balance sheets, and a clear execution plan.

Territorial’s board unanimously recommended the Hope merger, calling Blue Hill’s bid “illusory, non-binding, and highly conditional.”

Financial Impact Snapshot

Metric	Standalone TBNK	Combined Entity
Dividend	$0.01	$0.11
EPS Growth	0%	Double-digit %
Cost Synergies	–	$10.5M annually
Efficiency Ratio	98.7%	<50% target
Return on Assets	0%	>1.2% target

What’s Next?

The merger is expected to close in early April 2025, pending final customary closing conditions. Post-merger, Territorial will operate as a division of Bank of Hope, keeping its branding and community feel while gaining a whole new toolbox to serve its customers better.

Hope Bancorp, meanwhile, will become the largest regional bank focused on multicultural markets, with enhanced capital, tech, and scale.

Why This Merger is a Big Deal

Expands national reach with a deep local commitment
Improves operational efficiency and shareholder returns
Preserves community values while bringing modern innovation
Outshines competitors with a transparent and well-executed plan

In short? It’s a textbook example of a win-win merger done right.

Wrapping It Up

The Hope Bancorp–Territorial Bancorp merger is a transformational moment for regional banking. It’s not just about balance sheets—it’s about vision, values, and creating lasting community impact.

With expanded reach, diversified services, and a strong foundation, this merger is set to deliver long-term growth and resilience, not just for investors—but for the customers and communities these banks proudly serve.

Frequently Asked Questions (FAQs)

Will Territorial Bank branches change their name?

No. They'll operate as Territorial Savings, a division of Bank of Hope.

Are jobs being cut?

Not for frontline staff—all customer-facing branch employees are staying.

What happens to my shares?

If you’re a Territorial shareholder, you’ll receive 0.8048 shares of Hope Bancorp stock for every share you own.

Is this merger approved?

Yes. All required regulatory approvals have been received.

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