Bank of Hope has received final regulatory approvals for its merger with Territorial Savings Bank, a Hawaii-based financial institution. The merger is expected to close by early April, strengthening Bank of Hope’s presence across the U.S. mainland and Hawaii.
Regulatory Approvals Secure the Merger
On March 3, Bank of Hope announced that it had obtained approval from the Federal Reserve Bank (FRB), Federal Deposit Insurance Corporation (FDIC), California Department of Financial Protection and Innovation (DFPI), and the Hawaii Division of Financial Institutions. The bank initially revealed its acquisition plans in April 2023.
Territorial Savings Bank to Retain Its Name
As part of the agreement, Territorial Savings Bank will continue operating under its existing name but will be rebranded as “Territorial Savings, a division of Bank of Hope.” Bank of Hope stated that preserving Territorial Savings Bank’sidentity and strong ties to the local community remains a top priority.
Strategic Growth and Expansion
This merger strengthens Bank of Hope’s position in Hawaii while expanding its overall asset base and loan portfolio. Additionally, the acquisition will help secure a more stable deposit base and diversify the bank’s mortgage loan holdings.
Kevin Kim, CEO of Bank of Hope, emphasized the importance of this deal. “We are pleased to have received all necessary regulatory approvals. This merger allows us to solidify our position as one of the leading Asian American banks in the nation.”
Similarly, Allan Kitagawa, CEO of Territorial Savings Bank, highlighted the benefits. “This transaction enables us to expand our market share while leveraging a larger capital base to enhance the customer experience.”
Financial Impact of the Deal
Founded in 1921, Territorial Savings Bank operates 29 branches across Hawaii. According to 2023 FDIC data, the bank holds $2.17 billion in assets, $1.29 billion in loans, and $1.74 billion in deposits.
Following the merger, Bank of Hope’s total assets will grow by 12% to $19.2 billion. Additionally, its loan portfolio will expand 9% to $14.9 billion, and total deposits will increase 12% to $16.1 billion. The bank’s branch network will also expand from 46 to 75 locations nationwide.
Stock Exchange Agreement Finalized
The merger will be completed through a stock exchange. Under this agreement, Territorial Bancorp shareholders will receive 0.8048 shares of Bank of Hope stock per share owned.
Related Articles:
- Bank of Hope gets closer to merging with Territorial Savings Bank, expanding service to Hawaii
- Bank of Hope signs definitive merger with Territorial Savings Bank
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
