Blue Hill ups cash bid for Territorial Bancorp to $12.50/share

HONOLULU - Blue Hill Advisors LLC, in partnership with former Hawaii banking executive Allan Landon, has raised its cash offer to purchase Territorial Bancorp Inc. (NASDAQ: NASDAQ:TBNK) from $12.00 to $12.50 per share. The revised proposal, announced today, is a 27% premium over the current offer by Hope Bancorp, Inc. (NASDAQ: HOPE), based on Hope's closing stock price on the Nasdaq as of September 25.

The new bid is part of a strategic move to outdo Hope Bancorp's takeover attempt and is designed to sway Territorial's shareholders before their special meeting scheduled for October 10. The increased offer is also a significant development for investors, as it represents a heightened valuation of Territorial.

The presentation released by Blue Hill and Landon, accessible at www.NewTerritorial.com, outlines the details of their proposal and the potential benefits for Territorial's stakeholders. The investors behind the bid, which include funds managing over $3 billion in assets, have expressed confidence in their ability to swiftly complete due diligence and finalize the acquisition by the end of the year.

Territorial's shareholders have been urged to review the new offer and consider their voting options, especially those who have previously voted in favor of the Hope merger. The press release indicates that shareholders can change their vote if they have already cast it for the Hope merger by following the instructions in the prospectus filed by Hope with the U.S. Securities and Exchange Commission on August 22, 2024.

Blue Hill Advisors is known for its investments in regional and community banks, focusing on long-term value through active management. The firm's strategy often targets entities that it perceives as substantially mispriced by the market.

The press release contains forward-looking statements, which are based on current expectations and projections about future events. These statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in economic, financial, and market conditions.

This report is based on a press release statement from Blue Hill Advisors.

In other recent news, Hope Bancorp has reported a net income of $25.3 million, or $0.21 per diluted share, for the second quarter. When adjusted for notable items, the income stands at $26.6 million, or $0.22 per share. The bank also highlighted an expansion in its net interest margin and a decrease in operating expenses.

Simultaneously, Hope Bancorp is in the process of merging with Territorial Bancorp, with plans to finalize the deal by year-end. Despite these developments, the company anticipates a low single-digit loan growth and a 10% drop in net interest income compared to the previous year's quarter. However, a reduction in operating expenses by more than 7% from the same period last year is also expected.

DA Davidson has raised the stock target for Hope Bancorp to $15.00, maintaining a Buy rating. The firm's decision follows the bank's second-quarter performance, which displayed a positive Net Interest Margin shift. The unchanged full-year loan growth guidance from Hope Bancorp's management was also highlighted as a potential upside against estimates. Despite some challenges, the bank remains cautiously optimistic about its growth trajectory, especially considering the planned merger with Territorial Bancorp.

InvestingPro Insights

In light of the recent developments surrounding the acquisition battle for Territorial Bancorp Inc., investors and stakeholders of Hope Bancorp, Inc. (NASDAQ: HOPE) may benefit from a closer look at the company's financial metrics and analyst sentiment. According to real-time data from InvestingPro, Hope Bancorp currently holds a market capitalization of $1.51 billion. The company's price-to-earnings (P/E) ratio stands at 13.89, reflecting investor perceptions of its earnings potential. Notably, the P/E ratio has been adjusted to 12.62 for the last twelve months as of Q2 2024, indicating a slight improvement in valuation.

Considering the company's performance, Hope Bancorp has demonstrated a strong return over the last three months, with a 19.97% price total return. This uptrend is also evident in the six-month price total return of 14.9% and the year-to-date return of 5.54%. Such figures may signal a positive market sentiment towards the company's stock in the short to medium term.

InvestingPro Tips suggest a mixed outlook for Hope Bancorp. On the positive side, the company has successfully maintained dividend payments for 13 consecutive years, offering a dividend yield of 4.56%, which could be appealing for income-focused investors. Moreover, analysts predict the company will remain profitable this year, substantiated by the fact that it has been profitable over the last twelve months. On the flip side, some caution may be warranted as four analysts have revised their earnings downwards for the upcoming period, and the company suffers from weak gross profit margins, with a notable expected drop in net income this year.

For investors seeking a more in-depth analysis, InvestingPro offers additional insights and tips on Hope Bancorp, which can be accessed at https://www.investing.com/pro/HOPE. These additional tips can provide a more comprehensive understanding of the company's financial health and future prospects, supporting informed investment decisions.

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