A Strategically

Compelling & Financially

Attractive Combination

April 29, 2024

Forward Looking Statements & Additional Disclosures

This presentation contains statements regarding future events or the future financial performance of Hope Bancorp, Inc. ("Company") and its proposed merger with Territorial Bancorp Inc. ("Territorial") that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding the strategically compelling and financially attractive nature of the proposed merger, low-cost core deposit base, diversification of the loan portfolio, expansion of market share, percentage earnings per share growth, capital to support growth, and statements about the proposed transaction being immediately accretive . Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words "will," "believes," "expects," "anticipates," "intends," "plans," "estimates" or similar expressions. With respect to any such forward-looking statements, the Company and Territorial each claims the protection provided for in the Private Securities Litigation Reform

Act of 1995. These statements involve risks and uncertainties. Upon completion of the merger, the combined company's actual results, performance or achievements may differ significantly from the

results, performance or achievements expressed or implied in any forward-looking statements. The closing of the proposed transaction is subject to regulatory approvals, the approval of the shareholders of Territorial, and other customary closing conditions. There is no assurance that such conditions will be met or that the proposed merger will be consummated within the expected time frame, or at all. If the transaction is consummated, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating the Company and Territorial and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; 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; and required governmental approvals of the merger may not be obtained on its proposed terms and schedule, or without regulatory constraints that may limit growth. Other risks and uncertainties include, but are not limited to: possible further deterioration in economic conditions in our areas of operation; interest rate risk associated with volatile interest rates and related asset- liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying the Company's allowances for credit losses, and regulatory risks associated with current and future regulations. For additional information concerning these and other risk factors, see the Company's most recent Annual Report on Form 10-K. The Company does not undertake, and specifically disclaims any obligation, to update any forward- looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

Additional Information and Where to Find It

In connection with the proposed merger, Hope Bancorp, Inc. will file with the Securities and Exchange Commission ("SEC") a Registration Statement on Form S-4, which will include a Proxy Statement of

Territorial Bancorp Inc., that also constitutes a prospectus of Hope Bancorp, Inc. Territorial Bancorp shareholders are encouraged to read the Registration Statement and the Proxy Statement/Prospectus regarding the merger when it becomes available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information about the proposed merger. Territorial Bancorp shareholders will be able to obtain a free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Hope Bancorp and Territorial Bancorp at the SEC's Internet site (www.sec.gov). Territorial Bancorp shareholders will also be able to obtain these documents, free of charge, from Territorial Bancorp at https://www.tsbhawaii.bank/tsb/investor-relations/.

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Transaction Highlights

Strategically

Compelling

Nasdaq: HOPE

Nasdaq: TBNK

Financially

Attractive

Culturally

Aligned

  • Creates the largest U.S. regional bank catering to multi-ethnic customers across the continental United States and the Hawaiian Islands
  • TBNK bolsters Combined Company's core funding base with $1.6 billion in low-cost deposits as of 12/31/23
  • Accelerates diversification of Combined Company's loan portfolio by more than doubling HOPE's residential mortgage balances
  • Market share growth opportunities by leveraging larger balance sheet, more resources, enhanced technology and broader array of banking products & services for enhanced customer experience
  • Merger consideration of $78.6 million, or $8.82 per TBNK share(1)
  • Fixed exchange ratio: 0.8048 HOPE shares per TBNK share in an all-stock transaction
  • Expected to be immediately accretive after the close with double-digit percentage EPS growth. Targeting deal close by year-end 2024
  • Strong capital to support growth of the Combined Company
  • Shared corporate values that preserve and build on TBNK's 100+ year legacy of providing personalized customer service and supporting local communities
  • To ensure continuity for customers and employees after the close, legacy TBNK will do business under the Territorial Savings Bank brand, as a trade name of Bank of Hope
  • Continued dedication to and investment in the Hawai'i communities

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  1. Based on HOPE closing price of $10.96 as of 4/26/24

Overview of TBNK

  • Headquartered in Honolulu, Hawai'i
  • 5th largest deposit market share(1) in the state of Hawai'i
  • Founded in 1921: 100+ years of operating history in Hawai'i
  • Attractive cost of total deposits: 1.61% spot rate, or 1.20% excl. public deposits, as of 12/31/23
  • Low loan-to-value ("LTV") residential mortgage portfolio:
    avg. LTV of 63% as of 12/31/23, of which less than 1% has an LTV >80%

Financial Highlights (as of 12/31/23)(2)

28 Branch Footprint in the Hawaiian Islands

Kaua'i

O'ahu

Maui

$2.2B

Total Assets

$1.3B (97% Resi. Mort.)

Gross Loans

$1.6B

Total Deposits

80.0%

Loans / Deposits

0.10%

NPAs / Total Assets

$251MM

Tang. Common Equity

11.23%

Tang. Common Equity Ratio

28.33%

Common Equity Tier-1 Ratio

The Island of Hawai'i

(1) Deposit market share source: S&P Capital IQ Pro based on FDIC Summary of Deposits as of 6/30/23

4

(2) Source: S&P Capital IQ Pro as of 12/31/23

Pro Forma Loans and Deposits

Pro Forma Loan Portfolio

Pro Forma Deposit Portfolio

15%

8%

Multifamily

Residential Mortgage

Residential

8% TBNK

$15.2B

27%

Pro Forma

31%

C&I

Loans

Nonowner

Occupied CRE

(at 12/31/23)

19%

Owner Occupied

CRE

3%

4%

Washington

New Jersey

4%

Texas

5% Illinois

10%

Hawai'i

10%

New York

2%

Other States (VA, GA, AL)

$16.4B

Pro Forma

Deposits

(at 12/31/23)

62%

California

TBNK's contribution would more than double

HOPE's residential mortgage portfolio

Hawai'i would be the Combined Company's

3rd largest deposit market by state

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TBNK's Core Deposit Franchise: Low-Cost, Granular, Stable

Weighted Avg. Annual Cost of Total Deposits

3.00%

2.82%

2.50%

2.00%

1.50%

1.00%

1.23%

0.50%

0.00%

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

HOPE

TBNK

TBNK Deposits ($000) as of Year-End

$1,629

$1,632

$1,660

$1,682

$1,716

$1,637

$1,493

$1,597

$1,445

$1,360

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

  • FY 2023 avg. cost of total deposits: 1.23%, or 0.79% excl. public deposits
  • Year-endtotal cost of deposits @ 12/31/23: 1.61%, or 1.20% excl. public deposits
  • Granular deposit base: ~55,000 accounts, with avg. account size of ~$30,000 and median account size of ~$4,100
  • 73% of TBNK deposit balances (excl. public deposits) are from accounts equal to or less than $250,000 in size
  • 93% of non-CD deposit balances are consumer deposits

TBNK Deposits - By Account Size as of 12/31/23

$1MM+

Less Than $10K

5%

$500K - $1MM

4%

~35K accts.

<50 accts.

7%

$10k - $50K

<170 accts.

19%

~12K accts.

$1.5B

$250K - $500K

excl. public

15%

deposits of

<700 accts.

$171MM

$50K - $100K

16%

$100K - $250K

~3.5K accts.

32%

~3K accts.

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Source: S&P Capital IQ Pro, Company reports.

Transaction Details

Consideration

•

•

•

•

•

Fixed exchange ratio: TBNK shareholders to receive 0.8048 shares of HOPE common stock for each share of TBNK common stock 100% stock-for-stock transaction valued at approximately $78.6MM(1)

Based on HOPE's closing price on 4/26/24, represents a value of $8.82 per TBNK share

Transaction intended to qualify as a tax-free reorganization for TBNK shareholders

Upon merger completion, TBNK shareholders will own approximately 5.6% of HOPE shares outstanding (7.2 million shares) on a Pro Forma basis

Timing & Approvals

  • HOPE is a seasoned acquiror & integrator of diverse business models
  • Subject to approval by TBNK shareholders
  • Subject to customary regulatory approvals
  • No financing contingencies to complete the transaction
  • Targeting merger close by year-end 2024

Transaction

31%

~(6)%

~3 Years

Metrics (1)

Price/

HOPE TBV

HOPE TBV

TBNK TBV(2)

Accretion/

Earn-back

(Dilution)

Pro Forma

Combined

Company Capital

Ratios (3)

8.0%

9.2%

11.7%

13.3%

TCE(2)

Leverage

CET-1(2)

Total Capital

Ratio

Ratio

Ratio

Ratio

  1. Based on HOPE closing stock price of $10.96 as of 4/26/24. HOPE and TBNK tangible book value as of 12/31/23
  2. Tangible Book Value ("TBV") per share; Tangible Common Equity ("TCE"); Common Equity Tier-1("CET-1")

(3) Pro Forma capital ratios as of 12/31/23 including transaction fair market value marks

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Commitment to the Hawai'i Market

TERRITORIAL SAVINGS BANK

  • Continuing to operate under Territorial Savings Bank brand, doing business as a trade name of Bank of Hope
  • Strategically important partner enhancing Bank of Hope's footprint and diversification

EMPLOYEES

CUSTOMERS

COMMUNITIES

•

Local staff to ensure

•

Access to expanded array of

• Shared cultural values that

relationship continuity for

banking products & services

emphasize volunteerism and

customers

•

Benefits from enhanced

outreach to local communities

•

Competitive compensation,

technology platforms for

• Commitment to Territorial's

benefits and career

improved customer user

long-standing legacy of

advancement opportunities

experiences

community investments

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Appendix

9

Bank of Hope's Roots

Announced:

Foster Bank

Aug 2013

Pacific

International Bank

Feb 2013

Innovative Bank

1st Merger of Equals

Apr 2010

Nov 2011

2nd Merger of Equals

Jul 2016

Asiana Bank

Aug 2003

Saehan Bank

Nov 2013

BankAsiana

Oct 2013

Mirae Bank

Jun 2009

Liberty Bank of

New York

May 2006

April 29, 2024

Combination with TBNK fits

well into HOPE's long-term

growth strategy

(Est. 1986 in Los Angeles)

(Est. 1989 in Los Angeles)

(Est. 1980 in Los Angeles)

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Disclaimer

Hope Bancorp Inc. published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 13:15:27 UTC.