Territorial Bancorp (TBNK) said Monday that proxy advisory firm Institutional Shareholder Services has recommended shareholders to vote for the proposed merger with Hope Bancorp (HOPE).

The bank holding company said ISS made the recommendation in an Oct. 18 report, noting that a tie-up with Hope is better for Territorial compared with remaining standalone considering the "strategic rationale for the combination and the issues facing the company."

Territorial shareholders are set to vote on the deal at a special meeting on Nov. 6.

TBNK dropped 4.5% and HOPE shares were down 2.4% in recent Monday trading.

Price: 10.46, Change: -0.49, Percent Change: -4.52