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and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and geopolitical instability; and risks from natural disasters.
In addition, there are risks and uncertainties related to our acquisition of Territorial Bancorp Inc., including, among others, difficulties and delays in integrating Hope Bancorp and Territorial Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; and deposit attrition, operating costs, customer loss and business disruption following the acquisition, including difficulties in maintaining relationships with employees and customers, may be greater than expected.
In addition to the Bank, the Hope Bancorp has unconsolidated subsidiaries used as business trusts in connection with issuance of trust-preferred securities as described in Note 1 0 Convertible Notes and Subordinated Debentures" in Item 8 of this Form 10-K.
( Territorial ), headquartered in Honolulu, Hawaii, in a merger pursuant to which Territorial merged with and into the Company, with the Company being the surviving corporation, and immediately following such merger, Territorial Savings Bank, the wholly-owned bank subsidiary of Territorial, merged with and into the Bank, with the Bank being the surviving bank (such transaction, the Merger ).
Following the completion of the transaction, the legacy Territorial franchise in Hawaii continues to do business under the trade name Territorial Savings, a division of Bank of Hope.
Consumer and Other Loans Our consumer loans primarily consist of single-family mortgages; we also offer personal loans and home equity loans.
At December 31, 2025, there was no remaining balance on the borrowing capacity from FHLB Des Moines.
Early termination of these advances may be subject to a prepayment penalty.
Market Area and Competition As of December 31, 2025, we had 74 branches in the United States, predominantly in multi-ethnic communities.
Of these, 29 were located in Hawaii, 24 were located in California, nine were located in New York and New Jersey; four were in Washington; three were in Illinois; three were in Texas; one was in Alabama, and one was in Georgia.
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and achieving anticipated synergies, cost savings, and other benefits; higher than anticipated transaction costs; and deposit attrition, operating costs, customer loss, and business disruption following the merger, including difficulties in maintaining relationships with employees and customers, may be greater than expected.
Hope Bancorp exists primarily for the purpose of holding the stock of the Bank and other subsidiaries it may acquire or establish.
On March 28, 2024, the Bank entered into a Purchase and Assumption Agreement with PromiseOne Bank, a Georgia state bank, to sell the deposits, other liabilities, and certain physical assets of the Bank s two branches located in Virginia (Annandale and Centreville).
On April 26, 2024, the Company entered into a merger agreement with Territorial Bancorp Inc.
Under the terms of the merger agreement, assuming the transaction is consummated, Territorial will merge with and into the Company, immediately followed by the merger of Territorial s subsidiary bank, Territorial Savings Bank, with and into the Company s subsidiary bank, Bank of Hope.
Upon completion, Territorial shareholders would receive a fixed exchange ratio of 0.8048 shares of the Company s common stock in exchange for each share of Territorial common stock they own.
Based on the closing price of the Company s common stock on April 26, 2024, this represented a value of $8.82 per share of Territorial common stock, although the actual value will be determined upon the completion of the merger.
Following the completion of the pending transaction, the legacy Territorial franchise in Hawaii would continue to do business under the trade name Territorial Savings, a division of Bank of Hope.
From June 30, 2023, through March 31, 2024, we elected to retain our SBA 7(a) loan production on our Consolidated Statements of Financial Condition and did not record any gain on sale of SBA loans.
Due to lower premium rates paid in the secondary market, it was more economic to retain the production on our Consolidated Statements of Financial Condition and earn interest income on the full production amount.