Hope Bancorp, Inc. (NasdaqGS:HOPE) signed a definitive merger agreement to acquire Territorial Bancorp Inc. (NasdaqGS:TBNK) for $77.9 million on April 26, 2024. Under the terms of the merger agreement, upon completion of the transaction, Territorial shareholders will receive a fixed exchange ratio of 0.8048 shares of Hope Bancorp common stock in exchange for each share of Territorial common stock they own, in a 100% stock-for-stock transaction valued at approximately $78.6 million. This represents a value of $8.82 per share of Territorial Bancorp common stock. Under the terms of the merger agreement, Territorial Bancorp will merge with and into Hope Bancorp, immediately followed by the merger of Territorial?s subsidiary bank, Territorial Savings Bank, with and into the Hope Bancorp?s subsidiary bank, Bank of Hope. Following the completion of the transaction, the legacy Territorial franchise in Hawai?i will continue to do business under the Territorial Savings Bank brand, as a trade name of Bank of Hope.

The transaction is subject to regulatory approvals, the approval of Territorial shareholders, and the satisfaction of other customary closing conditions. The Boards of Directors of both companies have approved the merger agreement and the transaction contemplated thereby. The transaction is expected to close by year-end 2024. The proposed transaction, after the close, is expected to be immediately accretive to Hope Bancorp?s earnings. D.A. Davidson & Co. acted as financial advisor and Greenberg Traurig, LLP acted as legal advisor to Hope Bancorp. Keefe, Bruyette & Woods, Inc. acted as financial advisor and Luse Gorman, P.C acted as legal advisor to Territorial Bancorp.