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Hope and Territorial Bancorps get regulatory approvals to complete merger
Hope Bancorp (HOPE) and Territorial Bancorp (TBNK), the holding company of Territorial Savings Bank,jointly announced receipt of all required regulatory approvals to complete their previously announced merger . Upon completion of the Merger, it is intended that the legacy Territorial franchise in Hawai'i will operate under the trade name Territorial Savings, a division of Bank of Hope, preserving the 100-plus year legacy of the Territorial brand, culture and commitment to local communities. The combination of the two banks is expected to create the largest regional bank catering to multi-cultural customers across the continental United States and the Hawaiian Islands. "We are very pleased to have received the required regulatory approvals," stated Kevin S. Kim, Chairman, President and Chief Executive Officer of Hope Bancorp. "We believe this combination will strengthen our position as one of the leading Asian American banks in the country, add a stable, low-cost deposit base to the combined company, and accelerate the diversification of our loan mix with the addition of a residential mortgage portfolio with excellent asset quality. We look forward to building on Territorial's legacy of exemplary customer service and support of local communities in a strategically important market."
Territorial Bancorp reports Q4 EPS (20c) vs 4c last year
Net interest income decreased by $2.21M for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. Total interest income was $17.91M for the three months ended December 31, 2024, compared to $17.69M for the three months ended December 31, 2023. The $217,000 increase in total interest income was primarily due to a $274,000 increase in interest earned on loans and a $245,000 increase in interest earned on other investments. The $274,000 increase in interest income on loans resulted from a 14 basis point increase in the average loan yield, partially offset by a $20.63M decrease in the average loan balance. The increase in interest income on other investments is primarily due to a $28.86M increase in the average cash balance with the Federal Reserve Bank of San Francisco, offset by a 45 basis point decrease in the average interest rate paid on cash balances. The increases in interest income on loans and other investments during the quarter were partially offset by a $302,000 decrease in interest on investment securities, which occurred because of a $40.21M decrease in the average securities balances.
Hope Bancorp reports Q4 EPS 20c, consensus 20c
For the 2024 fourth quarter, our pre-provision net revenue increased 14% to $40.4M , up from $35.4M in the preceding third quarter. Quarter-over-quarter, our total revenue grew, led by strong growth in noninterest income, and our noninterest expense decreased, enhancing our efficiency," said Kevin S. Kim, Chairman, President and Chief Executive Officer. "Our asset quality improved with an 11% decrease in criticized loans and nonperforming assets down 13% since September 30. "In 2024, we focused on strengthening our deposit base, reducing brokered deposits to 7% of total deposits as of December 31, 2024, down from 10% as of December 31, 2023. In the second half of 2024, loan growth inflected and loans receivable grew 1% on an annualized basis since June 30, 2024. With ample liquidity and a tangible common equity ratio over 10% as of December 31, 2024, we are well positioned to support growth in the new year. "We are in the final stages of preparing for the integration of Territorial Savings Bank as a division of Bank of Hope, and are looking forward to building upon Territorial's legacy. The addition of Territorial's low-cost core deposits and residential mortgage loans with pristine asset quality will be meaningful contributors to the combined company in 2025. We anticipate the pending merger with Territorial Bancorp Inc. (TBNK), the stock holding company of Territorial Savings Bank, will be completed during the first quarter of 2025, subject to regulatory approvals.
Territorial Bancorp shareholders approve Hope Bancorp merger
Territorial Bancorp (TBNK) announced that its shareholders voted to approve the Company's proposed merger with Hope Bancorp, Inc. (HOPE) at the Special Meeting of Territorial Stockholders held Wednesday. Territorial shareholders' support for the Hope Bancorp merger underscores the value it delivers and the benefits it creates for customers, employees and communities across Hawai'i. Through this all-stock merger, Territorial shareholders will be able to participate in the significant upside value creation of a scaled, more diversified regional bank with an attractive dividend and compelling growth opportunities. Territorial customers can expect a seamless transition, with a continued focus on relationship banking, personalized service and tailored financial solutions. "We expect our combination with Bank of Hope to strengthen Territorial for the long term, providing many advantages for our customers and employees as we become part of a larger organization with greater resources, enhanced technology platforms, and an expanded array of banking products and services," said Allan S. Kitagawa, Chairman, CEO and President of Territorial. "We greatly appreciate the hard work of our employees and their unwavering commitment to delivering outstanding service as we progress toward the closing of this transaction." As previously announced, closing of the transaction remains subject to customary regulatory approvals and closing conditions.
Blue Hill says Territorial arguments based on 'false premise'
Blue Hill Advisors issued an letter to shareholders of Territorial Bancorp (TBNK) saying in part, "Territorial's Board of Directors has flooded you with materials urging you to support the Company's proposed sale to Hope Bancorp (HOPE) and dismiss our proposal. Most of their arguments are based on a false premise: that they cannot engage with us for fear of losing the Hope deal. This is simply not true. Under the Hope merger agreement, Territorial is entitled to explore a competing offer that is 'reasonably likely to lead to a Superior Proposal.' We believe we have always cleared that bar. And since sending more information about our offer in an addendum to the Board last week, we have no doubt...Seven investors, including Blue Hill Advisors, have made a $12.50 per share cash offer for up to 100% of Territorial shares - that's a 25% premium to the current value of the Hope consideration. Our proposal also allows up to 49% of existing holders to stay on as shareholders if they choose to participate in Territorial's considerable upside. Territorial has bizarrely attacked the proposal both for being too liquid (citing taxes on imaginary gains under the cash option) and too illiquid (for shareholders who choose not to tender and instead participate with us in the potential upside). The point is that our proposal lets you, the shareholder, decide-isn't whatever you choose going to be superior."
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