Territorial Bancorp is the holding company for Territorial Savings Bank, a Hawaii state-chartered savings bank founded in 1921 that operates 28 branches across the state. The bank runs a highly focused business: it takes in deposits from Hawaii residents and reinvests those funds almost entirely into residential mortgage loans, which represent roughly 97% of the total loan portfolio. The bank offers fixed-rate and adjustable-rate mortgages, including jumbo loans, which are common in Hawaii given the state's high home prices. Beyond its loan portfolio, the bank holds a large portfolio of mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae, which serves as a supplemental earning asset. Deposits are the primary funding source, supplemented by FHLB advances. The bank earns money the traditional way: paying depositors a lower rate and earning a higher rate on loans and investments. Because the bank holds long-duration, fixed-rate mortgages funded by shorter-term deposits, it is structurally exposed to rising rates, which increase funding costs faster than the fixed-rate loan book reprices. The bank operates exclusively in Hawaii, tying its fortunes to the state's economy, which is driven by tourism, federal and military spending, and residential real estate. A pending all-stock merger with Hope Bancorp, announced in April 2024, would have Territorial Bancorp stockholders receive 0.8048 shares of Hope Bancorp for each Territorial Bancorp share held.