Connect with us

Hawaii

Hope Bancorp Buys Hawaii’s Territorial Bancorp

Published

on

Hope Bancorp Buys Hawaii’s Territorial Bancorp


Hope Bancorp Buys Hawaii’s Territorial Bancorp
Duo: Julianna Balicka, Hope Bancorp CFO, left, and CEO Kevin Kim at their Koreatown offices. (Photo by David Sprague)

Hope Bancorp, a Koreatown-based bank focused on the Korean American community, will acquire the Hawaii-based Territorial Bancorp in an all-stock deal valued at $78.6 million.

Hope Bancorp, which operates through the $18 billion Bank of Hope, will expand its footprint into Hawaii after the deal’s expected close by the end of the year.

Hope Bank’s Chief Executive Kevin Kim said he’s known Territorial’s Chief Executive Allan Kitsagawa for some time, and a potential transaction between their two businesses had come up in casual conversations. 

But after high interest rates persisted and banks felt the aftershocks of the regional crisis that came to a boil last March, casual remarks became serious business discussions with investment bankers last December.

“It was a very difficult situation for anyone in the banking space,” Kim said. “The reason for us to consider a possible combination has become more and more compelling as this high-rate environment continues.”

Advertisement

More than one third of Bank of Hope’s loan sheet is tied up in a commercial real estate portfolio in Southern California. Territorial, on the other hand, is predominately defined as a residential mortgage lender with a stable deposit base. 

According to Kim, a large portion of the Hawaii-based bank’s mortgages were originated when borrowing costs were low, meaning the bank now struggles to maintain assets with lower interest income. 

Bank of Hope saw Territorial’s consumer base as an opportunity to diversify its loan portfolio and reduce risk, while alleviating the Hawaiian bank’s asset squeeze.

“We have our challenges, they have their challenges in this environment, but they are very complementary,” Kim said. “If we add their mortgage book to our loan portfolio, our loan diversification is accelerated.”

Kim added the bank will reach a large Asian American and Pacific Islander community in Hawaii – adding to its competitive niche of expanding via ethnic communities.

Advertisement

Over the past 15 years, Kim combined three major Korean-focused banks to create Hope Bancorp.

This latest acquisition, however, caught markets by surprise and led to an initial knee-jerk stock dip following the announcement. 

In its fourth-quarter earnings, Bank of Hope had announced a cost-restructuring plan to generate $40 million and maintain a prudent, savings-first mentality. 

Between now and last April, the bank shed almost $2 billion in assets and slashed hundreds of employees to reduce its non-interest expenses. 

The transaction with Territorial is expected to cost between $25 and $30 million, but Kim says the 7% reduction in non-interest expenses seen in this year’s first quarter proves the bank is still making positive headway on savings.

Advertisement

Since Bank of Hope does not currently operate in Hawaii, Kim says the bank can retain almost all employees at Territorial after the acquisition, and all branding will remain intact for the regional bank. 

This acquisition is the first deal announced in the local banking industry since Banc of California and PacWest merged last year. With Territorial’s assets, Bank of Hope will likely remain the No. 5 fifth largest bank in Los Angeles, according to the Business Journal’s rankings.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Hawaii

Honolulu police look for suspect in Kailua gas station robbery

Published

on

Honolulu police look for suspect in Kailua gas station robbery


KAILUA (HawaiiNewsNow) – Police are searching for a suspect in a robbery at a Kailua gas station.

Honolulu police said officers responded to the Texaco in Kailua around 11:30 a.m. Sunday.

Investigators said a man wearing a black ski mask and black hoodie entered the business and approached a 22-year-old cashier while brandishing a cleaver-type knife.

Police said the suspect demanded money, took cash from the register, and fled on foot and on a skateboard.

Advertisement

No injuries were reported.

Anyone with information is asked to call 911 or CrimeStoppers at 808-955-8300.

Copyright 2026 Hawaii News Now. All rights reserved.



Source link

Advertisement
Continue Reading

Hawaii

From Miloli‘i to around the globe: W. Hawaii man retires after impressive Coast Guard career – Hawaii Tribune-Herald

Published

on

From Miloli‘i to around the globe: W. Hawaii man retires after impressive Coast Guard career – Hawaii Tribune-Herald






Source link

Continue Reading

Hawaii

Hawaii’s Chalei Reid holds ‘Reid to Achieve’ Volleyball Clinic

Published

on

Hawaii’s Chalei Reid holds ‘Reid to Achieve’ Volleyball Clinic


Current Hawaii Rainbow Wahine and former Kahuku standout Chalei Reid, was busy on the North Shore on Saturday as she held her 1st ever Reid to Achieve Volleyball Clinic.

“I was able to host a clinic here at Kahuku High School, and, as well as have a book drive to be able to get back, I mean, with, previously had floods going on so, just being able to donate books to the kids affected in the elementary,” said Reid.

The Book drive with help from local organizations who Reid partnered up with, allowed for those who attended the camp to drop off a book that would be donated.

As for the volleyball clinic itself, Reid along with current Kahuku High School athletes and some of her Hawaii teammates hosted 200 kids throughout the day.

Advertisement

The kids were split up into 2 sessions, the morning group was 5-9 year old’s while the early afternoon group was 10-12 year old’s.

“Just being able to get back to my community and just to all who supported me. I think it’s just a really humble way to just get back to the people and just let the kids have fun and just be able to experience volleyball,” said Reid.

It was also a chance for many kids in the community to meet one of Hawaii’s standout players, learn the basics of the sport and have a good time.

“All of us are family and are all around the island. Just to be able to meet them and just give them the experience to have fun. I think it’s just super, wholesome and special that I’m able to give back to them,” said Reid.

Reid hopes to hold more clinics like this one in the future.

Advertisement



Source link

Continue Reading
Advertisement

Trending