Territorial Bancorp: Urging Shareholders to Vote FOR Hope Bancorp Merger

Territorial Bancorp Inc. (NASDAQ: TBNK) has recently urged its shareholders to vote FOR the proposed merger with Hope Bancorp, Inc. (NASDAQ: HOPE). The merger, announced on April 29, 2024, is a 100% tax-free, stock-for-stock transaction that offers Territorial shareholders an approximate 25% premium to the closing stock price just prior to the merger announcement. This article explores the key aspects of the merger, its benefits, and the reasons why Territorial Bancorp urges shareholders to vote FOR the deal.


The proposed merger with Hope Bancorp provides Territorial shareholders with significant value and substantial upside opportunity. In addition to the 25% premium, shareholders will benefit from the considerable upside value of the stronger combined company, as well as $10.5 million of incremental value from annual merger-enabled cost savings and synergies. Hope Bancorp's dividend, which is more than 1,000% higher than Territorial's standalone quarterly dividend, will also provide long-term benefits to shareholders.


As a result of the merger, Territorial shareholders will become investors in a larger, more diversified regional bank with exciting growth opportunities. The combined company will have increased resources and expanded growth investment opportunities, as well as a more resilient business better able to navigate market cycles. The merger preserves Territorial's unwavering commitment to Hawai‘i and provides benefits to customers, employees, and communities, with local branch and all other operations led by local teams.

Territorial Bancorp's Board of Directors has carefully considered the proposal and has unanimously recommended that shareholders vote FOR the Hope Bancorp merger and related proposals. The Board has reaffirmed its commitment to the proposed merger, despite a preliminary indication of interest by an outside investor group, Blue Hill. The Board has found the Blue Hill proposal to be highly uncertain and inferior to the Hope merger, as it relies on potential investments from unnamed investors and is subject to numerous conditions, including regulatory approvals and due diligence.


In conclusion, the proposed merger with Hope Bancorp offers Territorial shareholders significant value, upside opportunity, and long-term benefits. The merger allows Territorial Bancorp to expand its service offerings, geographical reach, and financial strength, ultimately better positioning the company to navigate market cycles and economic downturns. Territorial Bancorp urges shareholders to vote FOR the Hope Bancorp merger and related proposals, as the Board has carefully considered the proposal and has found it to be in the best interests of the company and its shareholders.