HONOLULU - Territorial Bancorp Inc. (NASDAQ: NASDAQ:TBNK) has announced the postponement of its Special Meeting of Stockholders, which was initially set for October 10, 2024, to vote on the proposed merger with Hope Bancorp, Inc. (NASDAQ: HOPE). The new date for the meeting is November 6, 2024, at 8:30 a.m. Hawaii time, as stated in a press release today.
The postponement is to allow the Territorial Board of Directors and management more time to engage with stockholders regarding the pending merger. The record date for stockholders entitled to vote remains August 14, 2024. The board continues to recommend unanimously that stockholders vote in favor of the merger with Hope Bancorp and all related proposals.
Regarding the merger, Hope Bancorp has filed a Registration Statement on Form S-4 with the U.S. Securities and Exchange Commission (SEC), which includes the Proxy Prospectus. This document, along with its supplement, has been distributed to Territorial’s stockholders around August 29, 2024, and September 12, 2024, respectively. Additional materials may be filed with the SEC as necessary.
The press release also contained forward-looking statements regarding the anticipated benefits of the merger, such as a low-cost core deposit base, diversification of the loan portfolio, and geographic expansion. However, these statements are subject to risks, uncertainties, and conditions, including regulatory approvals and the approval of Territorial Bancorp stockholders, which may prevent the merger from being completed as planned or within the expected timeframe.
Territorial Bancorp, based in Honolulu, Hawaii, is the holding company for Territorial Savings Bank, which has been operating since 1921 and has 28 branch offices across the state. The information provided in this news article is based on a press release statement from Territorial Bancorp Inc.
In other recent news, Territorial Bancorp and Hope Bancorp have been at the center of significant developments. Institutional Shareholder Services Inc. (ISS) has advised against Territorial Bancorp's proposed merger with Hope Bancorp, citing potential risks and alternatives that may better serve Territorial's shareholders. In response, Blue Hill Advisors and Allan Landon, a former Hawaii banking executive, have increased their cash offer to purchase Territorial Bancorp from $12.00 to $12.50 per share, a move that aims to outdo Hope Bancorp's takeover attempt.
These are recent developments that have unfolded amidst Hope Bancorp's financial performance. The company reported a net income of $25.3 million, or $0.21 per diluted share, for the second quarter, with an adjusted income of $26.6 million, or $0.22 per share. However, it anticipates a low single-digit loan growth and a 10% drop in net interest income compared to the previous year's quarter.
On the analysis front, DA Davidson has raised the stock target for Hope Bancorp to $15.00, maintaining a Buy rating. This decision follows Hope Bancorp's second-quarter performance, which demonstrated a positive Net Interest Margin shift. These developments carry implications for both Hope Bancorp and Territorial Bancorp, as they navigate the financial landscape.
InvestingPro Insights
As Territorial Bancorp Inc. (TBNK) postpones its Special Meeting of Stockholders to vote on the proposed merger with Hope Bancorp, Inc. (HOPE), it's worth examining some key financial metrics and insights for Hope Bancorp.
According to InvestingPro data, Hope Bancorp currently has a market capitalization of $1.49 billion. The company's P/E ratio stands at 13.72, suggesting a relatively modest valuation compared to some peers in the banking sector. This could be an important consideration for Territorial Bancorp stockholders as they evaluate the merger proposal.
InvestingPro Tips highlight that Hope Bancorp has maintained dividend payments for 13 consecutive years, which may be appealing to income-focused investors. The company's current dividend yield is 4.54%, potentially offering an attractive income stream for shareholders.
However, it's important to note that Hope Bancorp's revenue growth has been negative, with a -15.98% decline in the last twelve months as of Q2 2024. This could be a factor for Territorial Bancorp stockholders to consider when assessing the long-term prospects of the combined entity.
On a positive note, Hope Bancorp has shown strong recent performance, with InvestingPro Tips indicating a high return over the last year (51.51% price total return) and a strong return over the last three months (18.82% price total return). This recent momentum might be encouraging for those considering the merger.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable in assessing the potential merger. There are 7 more InvestingPro Tips available for Hope Bancorp, providing a deeper understanding of the company's financial health and prospects.
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