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Regional Korean American bank Hope Bancorp (HOPE), and Hawaii-based Territorial Bancorp (TBNK) entered into an all-stock merger agreement on April 29, valued at $78.6 million, to expand its reach across the continental United States and the Hawaiian Islands.
Under the terms of the merger agreement, Territorial shareholders will receive 0.8048 shares of Hope Bancorp common stock in exchange for each Territorial share they hold, valued at $8.82 per share, representing a premium of 24.75% based on Territorial’s last close.
“We believe this combination will strengthen our position as one of the leading Asian American banks in the country by expanding our footprint to the Hawaiian Islands,” said Kevin Kim, the Chief Executive Officer of Hope Bancorp, the holding company of Bank of Hope.
“Upon the close of the transaction, Territorial’s deposit base will enhance Hope’s core funding mix and Territorial’s residential mortgage portfolio will accelerate the diversification of Hope’s loans,” Kim added.
The merger of the banks comes after the collapse of Philadelphia-based Republic First Bank (FRBK) on April 26 and highlights the turmoil in the U.S. banking sector since last year, as increased investments in commercial real estate have harmed their financial health.
The deal, approved by the boards of both banks, is expected to close by the end of 2024.
Hope Bancorp shareholders will own approximately 94.4% of the combined entity and Territorial shareholders will own the remaining portion after the deal is closed.
Further details can be found on the Deal Metrics page here:
Deal Metrics for the acquisition of Territorial Bancorp Inc (TBNK) by Hope Bancorp, Inc (HOPE)
Editor’s Note: Baranjot Kaur contributed to this article.
Disclaimer: This article is intended for informational purposes only. It is not a recommendation to buy or sell any securities mentioned. You should conduct your own research and due diligence before making any investment decisions. The completeness or accuracy of the content or data provided in this article is not warranted.