Bank of Hope (CEO Kevin Kim, hereinafter “Hope”) has successfully completed its acquisition and merger (M&A) of Territorial Savings Bank (hereinafter “Territorial”) in Hawaii, a deal first announced in April of last year.

Through this acquisition, Hope will emerge as one of the largest regional banks in Asia, serving multicultural customers with comprehensive financial services across the U.S. mainland and Hawaii.

Hope’s parent company, Hope Bancorp, announced on the 3rd through a disclosure that it had received all necessary regulatory approvals from federal and state authorities for the merger. Territorial’s parent company, Territorial Bancorp, also announced on the same day that it had received regulatory approval.

Earlier, on November 6 of last year, Territorial shareholders approved the merger with Hope at a special shareholders’ meeting. Hope stated that the formal completion of the merger agreement is expected in early next month.

According to Hope, once the merger is finalized, Territorial will be integrated as a division of Hope and will continue to operate under its current name. This decision reflects Territorial’s strong brand recognition and loyal customer base in Hawaii, bolstered by its over 100-year history as a local bank.

Founded in 1921, Territorial boasts a 104-year history as one of Hawaii’s oldest homegrown banks. It operates its headquarters in Honolulu, the state capital, and has 28 branches across four islands: Oahu, Maui, Kauai, and Hawaii. As of the fourth quarter of last year, Territorial reported assets of $2.169 billion, deposits of $1.745 billion, and loans of $1.287 billion, with a workforce of 238 employees. Its primary product is mortgage loans, rooted in its long-standing ties to the local community.

The acquisition is structured as a 100% stock transaction. Territorial shareholders will receive 0.8048 shares of Bank of Hope stock for each share they hold. Based on Hope’s closing price on April 26 of last year, when the acquisition was announced, the deal is valued at approximately $78.6 million.

The financial industry notes that the merger of Hope, with $17 billion in assets, and Territorial, with $2.2 billion in assets, positions Hope as a true regional bank operating 74 branches across key Korean and Asian markets in the U.S., including the mainland and Hawaii. Analysts highlight several benefits: ▲ enhanced competitiveness through economies of scale, ▲ diversification of customer base with multicultural clients, ▲ strengthened mortgage portfolio, and ▲ improved operational and cost efficiency.

Bank of Hope CEO Kevin Kim expressed, “We are very pleased to have received the regulatory approvals necessary for this merger. Through this merger, we will solidify our position as one of the top Asian American banks in the U.S. By adding a stable, low-cost deposit base and an excellent residential mortgage loan portfolio from the combined entity, we will accelerate the diversification of our loan mix.” He added, “We will maintain and enhance Territorial’s legacy of exemplary customer service and support for the local community in the strategically important Hawaii market.”

Meanwhile, Korean American banks based in Southern California, including Hope, are actively expanding beyond the saturated Southern California market into other states.

Hanmi Bank, the second-largest Korean American bank, opened a new branch in Duluth, Georgia, on the 3rd—the first full-service branch for Hanmi in the state. Hanmi operates branches and loan production offices in Texas, Illinois, Virginia, New York, New Jersey, Colorado, Washington, and now Georgia.

PCB Bank has expanded with branches in New York, New Jersey, and Texas. Open Bank operates a branch in Las Vegas, making it the only Southern California-based Korean American bank with a presence there, in addition to Texas. CBB Bank has entered Texas and Hawaii, while US Metro Bank is cultivating Washington state as its second key market.

<Hwandong Cho>