Territorial Bancorp Inc. (NASDAQ: TBNK) (the ‘'Company”),
headquartered in Honolulu, Hawaii, the holding company parent of
Territorial Savings Bank, announced net income of $4.71 million, or
$0.52 per diluted share, for the three months ended March 31, 2022.
The Company also announced that its Board of Directors approved
a quarterly cash dividend of $0.23 per share. The dividend is
expected to be paid on May 26, 2022 to stockholders of record as of
May 12, 2022.
Allan Kitagawa, Chairman and Chief Executive Officer, said, “The
first quarter of 2022 was challenging. We have been able to
increase our net interest income despite these challenges. As
Hawaii’s economy improves, our strong capital and asset quality
will allow us to assist our customers with their banking needs. The
Company intends to continue to enhance shareholder value through
dividends and share repurchases.”
Interest Income
Net interest income increased to $13.80 million for the three
months ended March 31, 2022 from $13.21 million for the three
months ended March 31, 2021. Total interest income was $14.96
million for the three months ended March 31, 2022 compared to
$15.11 million for the three months ended March 31, 2021. The
$149,000 decrease in total interest income was primarily due to a
$1.69 million decrease in interest earned on loans. The decrease in
interest income on loans was partially offset by a $1.60 million
increase in interest income on investment securities. The decline
in interest income on loans was due to a 29 basis point decrease in
the average yield on loans receivable and a $78.09 million decrease
in the average loan balance. The decrease in the average yield on
loans occurred because of the payoff of higher yielding loans and
the addition of new lower yielding loans to the loan portfolio. The
decrease in the average loan balance occurred as loan repayments
and sales of loans exceeded the origination of new loans. The
increase in interest income on investment securities occurred
because of a $381.45 million increase in the average balance of
investment securities, which was partially offset by a 57 basis
point decrease in the average securities yield. The increase in the
average balance of investment securities occurred as security
purchases exceeded repayments and the sale of securities. The
decrease in the average securities yield occurred due to the payoff
of higher yielding securities and the addition of new lower
yielding securities to the investment portfolio.
Interest Expense and Provision for Loan
Losses
Total interest expense decreased to $1.15 million for the three
months ended March 31, 2022 from $1.90 million for the three months
ended March 31, 2021. Interest expense on deposits decreased by
$720,000 to $597,000 for the three months ended March 31, 2022 from
$1.32 million for the three months ended March 31, 2021. The
decrease in interest expense on deposits was primarily due to an 18
basis point decrease in the average cost of deposits. The decrease
in the average cost of deposits occurred with a reduction in
interest rates offered on deposits during the quarter. The Company
reversed loan loss provisions of $168,000 for the three months
ended March 31, 2022, compared to a reversal of $913,000 of loan
loss provisions for the three months ended March 31, 2021. The
reversal of the loan loss provisions during the three months ended
March 31, 2022 and 2021 occurred primarily because of the decreases
in the size of the mortgage loan portfolio, in Hawaii’s
unemployment rate and in the amount of loans in the payment
deferral program, all of which contributed to the reduction in the
allowance for loan losses.
Noninterest Income
Noninterest income was $1.65 million for the three months ended
March 31, 2022 compared to $2.24 million for the three months ended
March 31, 2021. The decrease in noninterest income was primarily
due to a $654,000 decrease in service fees on loans and deposit
accounts, a $526,000 decrease in the gain on sale of investment
securities and a $402,000 decrease in the gain on the sale of
loans. The decrease in service fees on loans and deposit accounts
occurred primarily because of a decline in the fees earned for
referring mortgage loans to other financial institutions and
mortgage brokers. The decrease in the gains on sale of investment
securities and loans occurred as fewer securities and mortgage
loans were sold. The decreases in service fees on loan and deposit
accounts and in gains on sale of investment securities and loans
were partially offset by a $987,000 increase in other non-interest
income which occurred when the Company received $1.03 million of
proceeds on bank-owned life
insurance.
Noninterest Expense
Noninterest expense was $9.60 million for the three months ended
March 31, 2022 compared to $9.55 million for the three months ended
March 31, 2021. Salaries and employee benefits rose by $90,000 to
$5.61 million for the three months ended March 31, 2022 from $5.52
million for the three months ended March 31, 2021 primarily because
of a decrease in new mortgage loan originations which lowered the
deferred salary for new loan originations. Equipment expenses rose
by $66,000 to $1.20 million for the three months ended March 31,
2022 from $1.13 million for the three months ended March 31, 2021
primarily because of an increase in data processing expenses.
Occupancy expenses decreased by $53,000 to $1.59 million for the
three months ended March 31, 2022 from $1.65 million for the three
months ended March 31, 2021, primarily due to a decrease in rent
expense. The decrease in rent expense occurred as the Company
leased new office space with lower rent. Other general and
administrative expenses decreased by $59,000 to $1.05 million for
the three months ended March 31, 2022 from $1.11 million for the
three months ended March 31, 2021, primarily due to decreases in
legal expenses.
Income Taxes
Income tax expense for the three months ended March 31, 2022 was
$1.32 million with an effective tax rate of 21.85% compared to
$1.79 million with an effective tax rate of 26.32% for the three
months ended March 31, 2021. The decrease in income tax expense and
the effective tax rate was primarily due to a $777,000 decrease in
income before taxes during the three months ended March 31, 2022
and the receipt of $1.03 million of proceeds on bank-owned life
insurance that were not taxable.
Balance Sheet
Total assets were $2.13 billion at March 31, 2022 and at
December 31, 2021. Loans receivable, including loans held for sale,
decreased by $6.46 million at March 31, 2022. The decrease in loans
receivable occurred as loan repayments and sales exceeded new loan
originations. Investment securities, including available for sale
securities, increased by $32.65 million to $669.09 million at March
31, 2022 from $636.44 million at December 31, 2021. The increase in
investment securities occurred as the purchase of new
mortgage-backed securities exceeded principal repayments. Cash and
cash equivalents decreased to $65.78 million at March 31, 2022 from
$99.86 million at December 31, 2021. The decrease in cash and cash
equivalents occurred because of the purchase of investment
securities. Total stockholders’ equity increased to $257.98 million
at March 31, 2022 from $256.32 million at December 31, 2021. The
increase in stockholders’ equity occurred primarily because the
Company’s net income and the increase in capital from the
allocation of ESOP shares exceeded dividends paid to shareholders
and share repurchases.
Capital Management
During the three months ended March 31, 2022, the Company
repurchased 45,916 of common shares. Through March 31, 2022, the
Company has repurchased 3,950,366 shares in all of its share
repurchase programs. The shares repurchased represent 32.29% of the
total shares issued in its initial public offering. The
Company intends to continue to enhance shareholder value through
the use of capital to support its dividends, both regular and/or
special, as well as its share repurchase program.
Asset Quality
The Company had $244,000 of delinquent mortgage loans 90 days or
more past due at March 31, 2022 and at December 31, 2021.
Non-performing assets totaled $3.22 million at March 31, 2022
compared to $3.28 million at December 31, 2021. The ratio of
non-performing assets to total assets was 0.15% at March 31, 2022
and at December 31, 2021. The allowance for loan losses at March
31, 2022 was $2.46 million and represented 0.19% of total loans
compared to $2.67 million and 0.20% of total loans as of December
31, 2021.
As of March 31, 2022, the Company had $8.36 million of mortgage
loans, or 0.64% of total loans receivable in its payment deferral
program. In this program, the Company allowed borrowers, who
experienced financial hardship because of COVID-19, to defer
payments on their loans. On $7.66 million of these loans, the
Company is receiving interest and escrow payments, while $697,000
of loans are delinquent. As of December 31, 2021, the
Company had $14.04 million, or 1.08% of total loans receivable, in
its payment deferral program. The decrease in the amount of loans
in the payment deferral program occurred as borrowers opted out of
the program and repaid any deferred loan payments.
About Us
Territorial Bancorp Inc., headquartered in Honolulu, Hawaii, is
the stock holding company for Territorial Savings Bank. Territorial
Savings Bank is a state chartered savings bank which was originally
chartered in 1921 by the Territory of Hawaii. Territorial Savings
Bank conducts business from its headquarters in Honolulu, Hawaii
and has 29 branches offices in the state of Hawaii. For additional
information, please visit the Company’s website at:
https://www.tsbhawaii.bank.
Forward-looking statements - this earnings
release contains forward-looking statements, which can be
identified by the use of words such as “estimate,” “project,”
“believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,”
“will,” “may” and words of similar meaning. These forward-looking
statements include, but are not limited to:
- statements of our goals, intentions and expectations;
- statements regarding our business plans, prospects, growth and
operating strategies;
- statements regarding the asset quality of our loan and
investment portfolios; and
- estimates of our risks and future costs and benefits.
These forward-looking statements are based on our current
beliefs and expectations and are inherently subject to significant
business, economic and competitive uncertainties and contingencies,
many of which are beyond our control. In addition, these
forward-looking statements are subject to assumptions with respect
to future business strategies and decisions that are subject to
change. We are under no duty to and do not take any obligation to
update any forward-looking statements after the date of this
earnings release.
The following factors, among others, could cause actual results
to differ materially from the anticipated results or other
expectations expressed in the forward-looking statements:
- the effect of any pandemic disease, including COVID-19, natural
disaster, war, act of terrorism, accident or similar action or
event;
- general economic conditions, either internationally, nationally
or in our market areas, that are worse than expected;
- competition among depository and other financial
institutions;
- inflation and changes in the interest rate environment that
reduce our margins or reduce the fair value of financial
instruments;
- adverse changes in the securities markets;
- changes in laws or government regulations or policies affecting
financial institutions, including changes in regulatory fees and
capital requirements;
- changes in monetary or fiscal policies of the U.S. Government,
including policies of the U.S. Treasury and the Federal Reserve
Board;
- our ability to enter new markets successfully and capitalize on
growth opportunities;
- our ability to successfully integrate acquired entities, if
any;
- changes in consumer demand, spending, borrowing and savings
habits;
- changes in accounting policies and practices, as may be adopted
by the bank regulatory agencies, the Financial Accounting Standards
Board, the Securities and Exchange Commission and the Public
Company Accounting Oversight Board;
- changes in our organization, compensation and benefit
plans;
- the timing and amount of revenues that we may recognize;
- the value and marketability of collateral underlying our loan
portfolios;
- our ability to retain key employees;
- cyberattacks, computer viruses and other technological risks
that may breach the security of our websites or other systems to
obtain unauthorized access to confidential information, destroy
data or disable our systems;
- technological change that may be more difficult or expensive
than expected;
- the ability of third-party providers to perform their
obligations to us;
- the ability of the U.S. Government to manage federal debt
limits;
- the quality and composition of our investment portfolio;
- changes in market and other conditions that would affect our
ability to repurchase our common stock; and
- changes in our financial condition or results of operations
that reduce capital available to pay dividends.
Because of these and a wide variety of other uncertainties, our
actual future results may be materially different from the results
indicated by these forward-looking statements.
Contact: Walter Ida(808)
946-1400
Territorial
Bancorp Inc. and Subsidiaries |
Consolidated
Statements of Income (Unaudited) |
(Dollars in
thousands, except per share data) |
|
|
|
|
|
Three Months
Ended |
|
|
|
March 31 |
|
|
|
2022 |
|
|
2021 |
|
|
Interest
income: |
|
|
|
|
|
|
|
Loans |
|
$ |
11,357 |
|
|
$ |
13,049 |
|
|
Investment securities |
|
|
3,423 |
|
|
|
1,825 |
|
|
Other investments |
|
|
176 |
|
|
|
231 |
|
|
Total interest income |
|
|
14,956 |
|
|
|
15,105 |
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
Deposits |
|
|
597 |
|
|
|
1,317 |
|
|
Advances from the Federal Home Loan Bank |
|
|
511 |
|
|
|
536 |
|
|
Securities sold under agreements to repurchase |
|
|
44 |
|
|
|
46 |
|
|
Total interest expense |
|
|
1,152 |
|
|
|
1,899 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
13,804 |
|
|
|
13,206 |
|
|
(Reversal of
provision) provision for loan losses |
|
|
(168 |
) |
|
|
(913 |
) |
|
|
|
|
|
|
|
|
|
Net interest income after reversal of provision for loan
losses |
|
|
13,972 |
|
|
|
14,119 |
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
Service fees on loan and deposit accounts |
|
|
341 |
|
|
|
995 |
|
|
Income on bank-owned life insurance |
|
|
197 |
|
|
|
188 |
|
|
Gain on sale of investment securities |
|
|
— |
|
|
|
526 |
|
|
Gain on sale of loans |
|
|
18 |
|
|
|
420 |
|
|
Other |
|
|
1,097 |
|
|
|
110 |
|
|
Total noninterest income |
|
|
1,653 |
|
|
|
2,239 |
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
5,613 |
|
|
|
5,523 |
|
|
Occupancy |
|
|
1,594 |
|
|
|
1,647 |
|
|
Equipment |
|
|
1,196 |
|
|
|
1,130 |
|
|
Federal deposit insurance premiums |
|
|
141 |
|
|
|
141 |
|
|
Other general and administrative expenses |
|
|
1,054 |
|
|
|
1,113 |
|
|
Total noninterest expense |
|
|
9,598 |
|
|
|
9,554 |
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
6,027 |
|
|
|
6,804 |
|
|
Income
taxes |
|
|
1,317 |
|
|
|
1,791 |
|
|
Net income |
|
$ |
4,710 |
|
|
$ |
5,013 |
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
|
$ |
0.52 |
|
|
$ |
0.55 |
|
|
Diluted
earnings per share |
|
$ |
0.52 |
|
|
$ |
0.55 |
|
|
Cash
dividends paid per common share |
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
Basic
weighted-average shares outstanding |
|
|
8,980,135 |
|
|
|
9,130,777 |
|
|
Diluted
weighted-average shares outstanding |
|
|
9,014,454 |
|
|
|
9,153,450 |
|
|
|
|
|
|
|
|
|
|
Territorial
Bancorp Inc. and Subsidiaries |
|
Consolidated Balance
Sheets (Unaudited) |
|
(Dollars in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
December
31. |
|
|
|
|
2022 |
|
|
2021 |
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
65,784 |
|
|
$ |
99,859 |
|
|
|
Investment
securities available for sale |
|
|
5,268 |
|
|
|
— |
|
|
|
Investment
securities held to maturity, at amortized cost (fair value of
$615,381 and $634,987 at March 31, 2022 and December 31, 2021,
respectively). |
|
|
663,826 |
|
|
|
636,442 |
|
|
|
Loans held
for sale |
|
|
1,009 |
|
|
|
— |
|
|
|
Loans
receivable, net |
|
|
1,295,355 |
|
|
|
1,302,824 |
|
|
|
Federal Home
Loan Bank stock, at cost |
|
|
8,197 |
|
|
|
8,173 |
|
|
|
Federal
Reserve Bank stock, at cost |
|
|
3,163 |
|
|
|
3,158 |
|
|
|
Accrued
interest receivable |
|
|
5,849 |
|
|
|
5,786 |
|
|
|
Premises and
equipment, net |
|
|
3,886 |
|
|
|
4,065 |
|
|
|
Right-of-use
asset, net |
|
|
14,080 |
|
|
|
9,982 |
|
|
|
Bank-owned
life insurance |
|
|
47,189 |
|
|
|
51,423 |
|
|
|
Deferred
income tax assets, net |
|
|
1,732 |
|
|
|
1,927 |
|
|
|
Prepaid
expenses and other assets |
|
|
12,622 |
|
|
|
6,963 |
|
|
|
Total assets |
|
$ |
2,127,960 |
|
|
$ |
2,130,602 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Deposits |
|
$ |
1,675,568 |
|
|
$ |
1,681,828 |
|
|
|
Advances from the Federal Home Loan Bank |
|
|
141,000 |
|
|
|
141,000 |
|
|
|
Securities sold under agreements to repurchase |
|
|
10,000 |
|
|
|
10,000 |
|
|
|
Accounts payable and accrued expenses |
|
|
22,539 |
|
|
|
22,638 |
|
|
|
Lease liability |
|
|
14,840 |
|
|
|
10,744 |
|
|
|
Income taxes payable |
|
|
2,473 |
|
|
|
1,863 |
|
|
|
Advance payments by borrowers for taxes and insurance |
|
|
3,558 |
|
|
|
6,207 |
|
|
|
Total liabilities |
|
|
1,869,978 |
|
|
|
1,874,280 |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
Preferred stock, $.01 par value; authorized 50,000,000 shares, no
shares issued or outstanding |
|
|
— |
|
|
|
— |
|
|
|
Common stock, $.01 par value; authorized 100,000,000 shares; issued
and outstanding 9,285,990 and 9,324,060 shares at March 31, 2022
and December 31, 2021, respectively. |
|
|
93 |
|
|
|
93 |
|
|
|
Additional paid-in capital |
|
|
55,937 |
|
|
|
56,951 |
|
|
|
Unearned ESOP shares |
|
|
(3,303 |
) |
|
|
(3,425 |
) |
|
|
Retained earnings |
|
|
210,882 |
|
|
|
208,227 |
|
|
|
Accumulated other comprehensive loss |
|
|
(5,627 |
) |
|
|
(5,524 |
) |
|
|
Total stockholders’ equity |
|
|
257,982 |
|
|
|
256,322 |
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
2,127,960 |
|
|
$ |
2,130,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Territorial
Bancorp Inc. and Subsidiaries |
|
Selected Financial
Data (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
|
|
0.90 |
% |
|
|
0.96 |
% |
|
|
|
|
Return on average equity |
|
|
|
|
7.39 |
% |
|
|
8.08 |
% |
|
|
|
|
Net interest margin on average interest earning assets |
|
2.72 |
% |
|
|
2.61 |
% |
|
|
|
|
Efficiency ratio (1) |
|
|
|
|
|
62.09 |
% |
|
|
61.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March |
|
December |
|
|
|
|
|
|
|
|
|
|
|
31, 2022 |
|
|
|
31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
Book value per share (2) |
|
|
|
$ |
27.78 |
|
|
$ |
27.49 |
|
|
|
|
|
Stockholders' equity to total assets |
|
|
|
12.12 |
% |
|
|
12.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Delinquent loans 90 days past due and not accruing |
$ |
244 |
|
|
$ |
244 |
|
|
|
|
|
Non-performing assets (3) |
|
|
|
$ |
3,224 |
|
|
$ |
3,280 |
|
|
|
|
|
Allowance for loan losses |
|
|
|
$ |
2,459 |
|
|
$ |
2,669 |
|
|
|
|
|
Non-performing assets to total assets |
|
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
|
|
Allowance for loan losses to total loans |
|
|
|
0.19 |
% |
|
|
0.20 |
% |
|
|
|
|
Allowance for loan losses to non-performing assets |
|
76.27 |
% |
|
|
81.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
Note: |
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(1) Efficiency ratio
is equal to noninterest expense divided by the sum of net interest
income and noninterest income |
|
(2) Book value per
share is equal to stockholders' equity divided by number of shares
issued and outstanding |
|
(3) Non-performing
assets consist of non-accrual loans and real estate owned. Amounts
are net of charge-offs |
|
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Territorial Bancorp (NASDAQ:TBNK)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Territorial Bancorp (NASDAQ:TBNK)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024