Territorial Bancorp (TBNK) said Monday it is urging investors to reject a proposed takeover proposal from Blue Hill Advisors and instead support its proposed merger with Hope Bancorp (HOPE), describing Blue Hill's non-binding express of interest as "illusory."

Territorial shareholders are scheduled to meet on Nov. 6 to vote on Hope Bancorp's all-stock buyout bid, which is offering to swap 0.8048 of a Hope share for each of their Territorial shares.

Territorial said the merger proposal provides its shareholders with a 25% premium over its share price just prior to the merger announcement and expects to realize around $10.5 million in synergies and related cost savings after the deal closes.

In contrast, Territorial said Blue Hill had not secured the financing needed to fund its $12.50-per-share cash buyout proposal. Blue Hill's proposed takeover of Territorial with Allan Landon, the former board chairman and chief executive of the Bank of Hawaii (BOH), is dependent on the group first clearing several regulatory hurdles it has not yet started to address, Territorial added.

Shares of Territorial were down 4.9% in recent trading, while Hope Bancorp fell 1.2%.

Price: 10.86, Change: -0.56, Percent Change: -4.90