Hope Bancorp and Territorial Bancorp receive merger approvals

LOS ANGELES & HONOLULU - Hope Bancorp, Inc. (NASDAQ: HOPE) and Territorial Bancorp Inc. (NASDAQ: NASDAQ:TBNK) have announced the receipt of all necessary regulatory approvals for their upcoming merger. The merger, expected to be finalized at the beginning of April 2025, will unite Bank of Hope and Territorial Savings Bank, creating the largest regional bank focused on serving multi-cultural communities in the continental U.S. and Hawaii.

Upon completion, the Territorial brand will continue operating in Hawaii as "Territorial Savings, a division of Bank of Hope," preserving its century-long history. Kevin S. Kim, CEO of Hope Bancorp, expressed confidence that the merger would solidify their position as a leading Asian American bank, bringing together a stable deposit base and a diversified loan portfolio with strong asset quality. Hope Bancorp has demonstrated its commitment to shareholder returns through 14 consecutive years of dividend payments.

Allan S. Kitagawa, CEO of Territorial, highlighted the benefits for customers and shareholders, anticipating a smooth transition and improved long-term prospects with the combined company’s resources.

The merger is set against the backdrop of Bank of Hope’s status as the first and only super regional Korean American bank in the United States, boasting $17.05 billion in total assets as of December 31, 2024. With headquarters in Los Angeles, Bank of Hope operates across several states and offers a wide range of banking services.

Territorial Bancorp, based in Honolulu, Hawaii, has a legacy dating back to 1921 and operates 29 branch offices in the state.

Both companies have cautioned that forward-looking statements related to the merger involve risks and uncertainties, and there is no guarantee that the merger will be completed as planned or within the anticipated timeframe. For deeper insights into Hope Bancorp’s financial health and future prospects, InvestingPro subscribers can access comprehensive analysis, including additional ProTips and detailed financial metrics in our Pro Research Report, part of our coverage of over 1,400 US stocks.

This merger is expected to enhance customer experience by leveraging a larger balance sheet and an expanded suite of banking products and services. The news is based on a press release statement from both institutions.

In other recent news, Hope Bancorp reported its Q4 2024 earnings, achieving an earnings per share (EPS) of $0.20, exceeding the analyst forecast of $0.14. Despite this earnings beat, the company’s revenue fell short of expectations, recording $118.02 million against a projected $120.05 million. The company also experienced a 3% decline in total deposits from the previous quarter. Hope Bancorp is optimistic about its pending merger with Territorial Bancorp, expected to close in Q1 2025, which could enhance loan accretion income by $15 million in 2025. Analysts from Piper Sandler and KBW have inquired about the merger’s potential impact on expenses and strategic growth opportunities. Additionally, Hope Bancorp anticipates moderate loan growth and an improved deposit mix in the coming year. The competitive deposit pricing environment remains a challenge, as highlighted by the company’s CFO, Giuliana Beliska. Looking forward, Hope Bancorp expects net interest income growth in the low double-digit percentage range and plans to continue selling SBA (LON:SBA) loans throughout 2025.

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