Investor collective's proposal for purchasing Hawaii bank gets denied
Hawaii's Territorial Bancorp and Hope Bancorp completed their merger on April 2, 2025, marking a significant expansion for Hope Bancorp into Hawaii's high-growth multicultural market. The acquisition added $1.7 billion in deposits and materially increased Hope Bancorp's total assets to $18.55 billion as of the second quarter of 2025.
The merger enhances Hope Bancorp's net interest margin and capital ratios, providing a solid foundation for future growth in a low-rate environment. The deal is part of Hope's broader strategic expansion in serving immigrant and multicultural communities, leveraging AI-driven personalization and regulatory adaptability to strengthen its market position.
However, an unsolicited offer from Blue Hill Advisors to acquire Territorial Bancorp was rejected by the company. Specific details or publicly stated reasons for this rejection are not disclosed. Generally, such rejections occur if the unsolicited offer is perceived as undervaluing the company or not aligning with the strategic interests of the board and shareholders.
In April, Hope Bancorp offered to acquire Territorial Bancorp for $8.82 per share, all-stock. Territorial CEO Allan Kitagawa stated that the Blue Hill proposal is "highly uncertain and inferior" to the merger agreed upon with Hope.
Blue Hill has requested to engage with Territorial's Board, but the terms of the Hope merger agreement prevent this. Territorial has scheduled an Oct. 10 special meeting for stockholders to vote on the Hope deal.
If given the opportunity, Blue Hill expects to close the investment by the end of the year. The group of investors backing Blue Hill has not provided evidence of the financial means to back up their offer, nor evidence to prove that they could secure the required regulatory approvals promptly, if at all.
Under Blue Hill, Territorial's board would be reconstructed to include Allan Landon, Jason Blumberg, and local business or community leaders. If the Blue Hill offer were accepted, it is expected to keep Territorial under local leadership, provide an opportunity for Territorial to return to profitability and growth, and create jobs in Hawaii as the bank invests in growth and technology.
The ultimate decision lies with Territorial's shareholders, who will vote on the proposed mergers in the coming months.
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- In the midst of their strategic expansion, Hope Bancorp aims to leverage the finance and business sectors, particularly fintech, to strengthen their market position within multicultural communities.
- The RE skepticism toward Blue Hill Advisors' unfavorable offer lies in its perceived undervaluing of Territorial Bancorp and incongruence with the company's strategic interests, as sources suggest.
