Territorial Bancorp Stock Price, News & Analysis

Territorial Bancorp Inc. (NASDAQ: TBNK) is the stock holding company for Territorial Savings Bank, a state‑chartered savings bank headquartered in Honolulu, Hawaiʻi. According to company disclosures, Territorial Savings Bank was originally chartered in 1921 by the Territory of Hawaiʻi and conducts business from its headquarters in Honolulu with a network of branch offices across the state of Hawaiʻi.

Territorial Bancorp operates in the savings institutions industry within the broader finance and insurance sector. As the parent of Territorial Savings Bank, the company focuses on traditional banking activities that are typical for a state‑chartered savings bank. Public statements describe the bank as maintaining a long‑standing presence in Hawaiʻi and emphasize a legacy of service to local communities over more than a century of operations.

In public communications, Territorial Bancorp highlights that Territorial Savings Bank conducts business through dozens of branch offices located throughout the state of Hawaiʻi. These branches operate under the Territorial Savings Bank brand and serve customers from the bank’s Honolulu headquarters and its branch network. Earlier company descriptions also note that Territorial Savings Bank has provided personal service to individuals and businesses in Hawaiʻi since 1921 and offers a full line of banking products.

Corporate structure and charter

Territorial Bancorp Inc. functions as the stock holding company for Territorial Savings Bank. Territorial Savings Bank is identified as a state‑chartered savings bank, originally chartered in 1921 by the Territory of Hawaiʻi. The bank’s business is conducted from its Honolulu, Hawaiʻi headquarters and from its branch offices located within the state. This structure places Territorial Bancorp within the category of publicly traded bank holding companies whose primary asset is a regulated depository institution.

Geographic focus

Based on company descriptions in recent earnings and merger‑related news releases, Territorial Savings Bank’s operations are concentrated in the state of Hawaiʻi. The bank’s headquarters are in Honolulu, Hawaiʻi, and it maintains a network of branch offices across the state. References in these releases consistently describe the institution as a Hawaiʻi‑based franchise with a long history in the local market.

Merger with Hope Bancorp, Inc.

Territorial Bancorp has entered into a definitive merger agreement with Hope Bancorp, Inc. (NASDAQ: HOPE), the holding company of Bank of Hope. Joint news releases state that Hope Bancorp and Territorial Bancorp signed this agreement in a stock‑for‑stock transaction, with Territorial stockholders to receive a fixed exchange ratio of Hope Bancorp common stock for each share of Territorial common stock. The transaction is described as intended to qualify as a tax‑free reorganization for Territorial stockholders.

According to the companies’ joint announcements, all required regulatory approvals for the merger have been received, and the merger is expected to be completed subject to the satisfaction of customary closing conditions. Upon completion of the merger, it is intended that the legacy Territorial franchise in Hawaiʻi will operate under the trade name “Territorial Savings, a division of Bank of Hope”. Public statements emphasize that this structure is intended to preserve the more than 100‑year legacy of the Territorial brand, culture and commitment to local communities in Hawaiʻi.

Post‑merger franchise expectations

In merger‑related communications, Hope Bancorp and Territorial Bancorp state that, after the merger closes, the Territorial franchise in Hawaiʻi is expected to remain under the Territorial Savings name as a division of Bank of Hope. The branches are expected to continue to do business under the Territorial Savings Bank brand as a trade name of Bank of Hope. These statements indicate that, while Territorial Bancorp Inc. as a separate holding company is expected to be combined with Hope Bancorp, the Territorial Savings identity in Hawaiʻi is intended to be maintained as part of the combined organization.

Capital and asset quality disclosures

In its public earnings releases, Territorial Bancorp reports regulatory capital ratios and asset quality metrics for Territorial Savings Bank. The company has disclosed tier one leverage and risk‑based capital ratios that meet the regulatory definition of a "well‑capitalized" institution. It has also reported ratios of non‑performing assets to total assets, along with information on delinquent mortgage loans, non‑performing assets, and the allowance for credit losses as a percentage of total loans and of non‑performing loans. These disclosures are intended to provide insight into the bank’s credit quality and capital position.

The company’s earnings releases also describe trends in net interest income, interest expense on deposits and borrowings, and noninterest income and noninterest expense. They attribute changes in interest income to factors such as average loan yields, average loan balances, and cash balances with the Federal Reserve Bank of San Francisco, and attribute changes in interest expense to higher costs of certificates of deposit and savings accounts, as well as changes in borrowings from the Federal Home Loan Bank and the Federal Reserve Bank.

Balance sheet and funding profile

Public financial disclosures from Territorial Bancorp describe a balance sheet that includes loans receivable, investment securities (including mortgage‑backed securities), and cash and cash equivalents. The company has reported that changes in investment securities balances are driven by principal repayments on mortgage‑backed securities, and that changes in loans receivable reflect loan repayments, sales, and new loan originations.

On the funding side, the company reports deposits, including deposits from state and local governments, and borrowings such as Federal Home Loan Bank advances, Federal Reserve Bank advances, and repurchase agreements. Disclosures explain that increases in deposits and principal repayments on securities and loans have been used to repay maturing borrowings, and that changes in deposit composition reflect customer movement between savings accounts and certificates of deposit in response to interest rate conditions.

Risk factors and forward‑looking statements

Territorial Bancorp’s earnings and merger‑related releases include extensive forward‑looking statements language. These statements identify risks and uncertainties that could cause actual results to differ from expectations, including factors related to the proposed transaction with Hope Bancorp (such as regulatory and stockholder approvals and closing conditions), general economic conditions, competition among financial institutions, inflation and interest rate changes, securities market conditions, regulatory changes, monetary and fiscal policy, the ability to enter new markets or integrate acquisitions, changes in consumer behavior, accounting changes, organizational changes, technology risks, third‑party provider performance, government debt management, investment portfolio composition, and the effects of events such as pandemics, natural disasters, war, terrorism, or accidents.

Shareholder considerations

In connection with the Hope Bancorp merger, Territorial Bancorp has communicated with its shareholders through proxy materials and public releases. These communications describe the terms of the merger agreement, the fixed exchange ratio for Territorial shares, and the intended tax treatment of the transaction. They also discuss alternative proposals that have been publicly referenced by outside investor groups and explain the Territorial Board of Directors’ evaluation of such proposals in light of its fiduciary duties and the conditions of the Hope Bancorp merger agreement.

Company status

As of the latest available public news, Territorial Bancorp Inc. remains a publicly traded holding company for Territorial Savings Bank, with its common stock listed on NASDAQ under the symbol TBNK. The company has entered into a definitive merger agreement with Hope Bancorp, and joint releases state that all required regulatory approvals to complete the merger have been received, with completion subject to customary closing conditions and expected timing specified in those releases. No information in the provided materials indicates that the merger has been completed or that TBNK has been delisted, so the merger should be understood as a pending transaction based on the latest disclosures.