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Territorial Bancorp urges shareholders to vote for Hope Bancorp merger

Territorial Bancorp Inc. (TBNK) announced it is mailing a letter to Territorial shareholders in connection with the company’s upcoming Special Meeting of Stockholders to vote on the proposed merger with Hope Bancorp, Inc. (HOPE) and related proposals. The Special Meeting is scheduled for November 6, 2024 at 8:30 a.m., Hawai’i Time. The merger is a 100% tax free, stock-for-stock transaction under which Territorial shareholders will receive 0.8048 shares of Hope Bancorp common stock for each share of Territorial common stock they own. This per share consideration represents an approximate 25% premium to Territorial’s closing stock price just prior to the merger announcement. Territorial said shareholders will benefit from the considerable upside value of the stronger combined company as well as $10.5M of incremental value from annual merger enabled cost savings and synergies, and Hope Bancorp’s dividend, which is more than 1,000% higher than Territorial’s standalone quarterly dividend. Territorial also said Blue Hill does not have committed financing, and its suggested transaction is dependent on numerous conditions, including its ability to overcome significant regulatory hurdles in a regulatory process that Blue Hill has not yet started. Blue Hill is a newly created entity and appears to lack M&A and regulatory experience with transactions of this size and complexity, Territorial argues. The Territorial Board of Directors unanimously recommends that shareholders vote FOR the Hope Bancorp merger and related proposals.

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