HONOLULU — A Los Angeles-based super-regional Korean American bank is poised to become the owner of Hawai‘i’s fifth-biggest financial institution.
Honolulu-based Territorial Savings Bank, founded in 1921, is slated to be acquired by Hope Bancorp Inc., subject to regulatory approval.
Territorial, with about $2 billion in assets and 28 branches on O‘ahu, Maui, Kaua‘i and Hawai‘i Island, is expected to retain its brand name and branches if the deal is completed as expected by the end of the year.
Hope Bancorp signed a definitive merger agreement in April with the local bank’s parent company, Territorial Bancorp Inc., and a public-comment period recently opened and runs until Aug. 31 with the Federal Deposit Insurance Corp.
Allan Kitagawa, chair and CEO of Territorial Bancorp, said in April that the acquisition by Hope Bancorp would provide advantages for customers and employees of the local bank by becoming part of a larger organization with greater resources, enhanced technology platforms and more banking products and services.
“Our name will remain Territorial Savings Bank, and we expect a seamless transition for our customers, who will continue to benefit from our strong focus on relationship banking, personalized service and tailored financial solutions,” Kitagawa said in a statement at the time.
Hope Bancorp operates Bank of Hope, which has 48 branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Alabama and Georgia. The company has about $17 billion in assets.
The company’s roots date back to 1980 when Wilshire Bank was formed to serve financial needs of a sprawling Koreatown in Los Angeles. Bank of Hope and its parent company were established in 2016 with the merger of Wilshire Bank and BBCN Bancorp Inc. to create what the companies described as the only super-regional Korean American bank in the United States.
Kevin Kim, chair and CEO of Hope Bancorp, said in April that the acquisition of Territorial will strengthen Hope’s position as one of the leading Asian American banks in the country and that Territorial’s more than century-old legacy would be preserved along with its culture and commitment to local communities.
Territorial’s history dates to 1921 when 10 people established Kaimuki Building & Loan Association to help foster home building in Kaimuki.
For a long time the bank was a mutual holding company owned by its customers. In 2009, Territorial sold stock shares to the public.
Under the merger agreement, Territorial shareholders will receive 0.8 share of Hope Bancorp common stock in exchange for each share of Territorial common stock they own.
It is estimated that the transaction will result in Hope Bancorp shareholders owning about 94 percent and Territorial shareholders owning about 6 percent of the combined entity, though actual amounts would be determined upon completion of the transaction.
Based on stock prices when the deal was announced in April, the value of the acquisition was $78.6 million.
Territorial’s stock closed at $9.54 Friday while Hope’s shares finished at $12.36.
