Territorial Bancorp Inc. (NASDAQ: TBNK) (the ‘'Company”),
headquartered in Honolulu, Hawaii, the holding company parent of
Territorial Savings Bank, announced net income of $3.89 million, or
$0.44 per diluted share, for the three months ended September 30,
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 November 23, 2022 to stockholders of record
as of November 10, 2022.
Allan Kitagawa, Chairman and Chief Executive Officer, said, “In
the third quarter of 2022, we were able to increase our total
interest income by 5.73% and net interest income by 3.45%. Rising
interest rates have increased interest expense but our strong
capital and asset quality will allow us to continue to serve our
community well. The Company intends to continue to enhance
shareholder value through dividends and share repurchases.”
Interest Income
Net interest income increased to $14.34 million for the three
months ended September 30, 2022 from $13.86 million for the three
months ended September 30, 2021. Total interest income was $16.15
million for the three months ended September 30, 2022 compared to
$15.28 million for the three months ended September 30, 2021. The
$876,000 increase in total interest income was primarily due to a
$1.15 million increase in interest earned on investment securities.
The increase in interest income on investment securities was
partially offset by a $460,000 decrease in interest income on
loans. The increase in interest income on investment securities was
primarily due to a $127.25 million increase in the average
securities balance and a 26 basis point increase in the average
yield on investment securities. The increase in the
average balance of investment securities occurred as security
purchases exceeded repayments. The increase in the average
securities yield occurred because higher yielding investment
securities were purchased. The decrease in interest on loans
occurred because of a $19.87 million decrease in the average loan
balance and an eight basis point decrease in the average loan
yield. 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.
Interest Expense and Provision for Loan
Losses
Total interest expense increased to $1.81 million for the three
months ended September 30, 2022 from $1.41 million for the three
months ended September 30, 2021. Interest expense on deposits
increased by $398,000 to $1.24 million for the three months ended
September 30, 2022 from $844,000 for the three months ended
September 30, 2021. The increase in interest expense on deposits
was due to a nine basis point increase in the average cost of
deposits and a $53.71 million increase in the average deposit
balance. The increase in the average cost of deposits occurred
because of higher interest rates offered on deposits during the
quarter. The Company reversed loan loss provisions of $109,000 for
the three months ended September 30, 2022, compared to a reversal
of $167,000 of loan loss provisions for the three months ended
September 30, 2021. The reversal of the loan loss provisions during
the three months ended September 30, 2022 and 2021 occurred
primarily because of the decreases in the size of the mortgage loan
portfolio, Hawaii’s unemployment rate and 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 $615,000 for the three months ended
September 30, 2022 compared to $1.22 million for the three months
ended September 30, 2021. The decrease in noninterest income was
primarily due to a $403,000 decrease in the gain on sale of
investment securities and a $138,000 decrease in the gain on sale
of loans. The decrease in the gain on sale of investment securities
occurred because no securities were sold during the three months
ended September 30, 2022. The decrease in the gain on sale of loans
occurred because fewer loans were sold during the three months
ended September 30, 2022.
Noninterest Expense
Noninterest expense was $9.77 million for the three months ended
September 30, 2022 compared to $9.56 million for the three months
ended September 30, 2021. Equipment expense rose by $238,000 to
$1.32 million for the three months ended September 30, 2022 from
$1.08 million for the three months ended September 30, 2021
primarily because of an increase in data processing
expenses. Other general and administrative expense
decreased by $103,000 to $1.11 million for the three months ended
September 30, 2022 from $1.22 million for the three months ended
September 30, 2021 primarily because of a decrease in other loan
expenses, which occurred because of the decrease in new loan
originations.
Income Taxes
Income tax expense for the three months ended September 30, 2022
was $1.40 million with an effective tax rate of 26.53% compared to
$1.53 million with an effective tax rate of 26.84% for the three
months ended September 30, 2021.
Balance Sheet
Total assets were $2.16 billion at September 30, 2022 and $2.13
billion at December 31, 2021. Loans receivable decreased by $7.78
million during the nine months ended September 30, 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 $102.13 million to
$738.58 million at September 30, 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 $36.29
million at September 30, 2022 from $99.86 million at December 31,
2021. The decrease in cash and cash equivalents occurred primarily
because of the purchase of investment securities. Total deposits
increased by $30.03 million to $1.71 billion at September 30, 2022
from $1.68 billion at December 31, 2021. Total stockholders’ equity
increased to $256.75 million at September 30, 2022 from $256.32
million at December 31, 2021. The increase in stockholders’ equity
occurred primarily because net income and the increase in capital
from the allocation of ESOP shares exceeded share repurchases and
dividends paid to shareholders.
Capital Management
On July 12, 2022, the Company announced it had repurchased
220,029 of common shares and completed its eleventh share
repurchase program. As of July 12, 2022, the Company has
repurchased 4,124,479 shares in all of its share repurchase
programs. The shares repurchased represent 33.72% 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 $227,000 of delinquent mortgage loans 90 days or
more past due at September 30, 2022 compared to $244,000 of
delinquent mortgage loans 90 days or more past due at December 31,
2021. Non-performing assets totaled $2.00 million at September 30,
2022 compared to $3.28 million at December 31, 2021. The ratio of
non-performing assets to total assets was 0.09% at September 30,
2022 and 0.15% at December 31, 2021. The allowance for loan losses
at September 30, 2022 was $2.02 million and represented 0.16% of
total loans compared to $2.67 million and 0.20% of total loans as
of December 31, 2021.
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 |
|
Nine Months
Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
11,376 |
|
|
$ |
11,836 |
|
$ |
33,909 |
|
$ |
37,019 |
|
|
Investment securities |
|
|
4,402 |
|
|
|
3,251 |
|
|
11,753 |
|
|
7,470 |
|
|
Other investments |
|
|
373 |
|
|
|
188 |
|
|
816 |
|
|
647 |
|
|
Total interest income |
|
|
16,151 |
|
|
|
15,275 |
|
|
46,478 |
|
|
45,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,242 |
|
|
|
844 |
|
|
2,577 |
|
|
3,251 |
|
|
Advances from the Federal Home Loan Bank |
|
|
522 |
|
|
|
522 |
|
|
1,549 |
|
|
1,595 |
|
|
Securities sold under agreements to repurchase |
|
|
46 |
|
|
|
46 |
|
|
137 |
|
|
137 |
|
|
Total interest expense |
|
|
1,810 |
|
|
|
1,412 |
|
|
4,263 |
|
|
4,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
14,341 |
|
|
|
13,863 |
|
|
42,215 |
|
|
40,153 |
|
|
Reversal of
provisions for loan losses |
|
|
(109 |
) |
|
|
(167 |
) |
|
(603 |
) |
|
(1,452 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after reversal of provision for loan
losses |
|
|
14,450 |
|
|
|
14,030 |
|
|
42,818 |
|
|
41,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
|
Service fees on loan and deposit accounts |
|
|
339 |
|
|
|
433 |
|
|
1,092 |
|
|
1,958 |
|
|
Income on bank-owned life insurance |
|
|
200 |
|
|
|
192 |
|
|
591 |
|
|
570 |
|
|
Gain on sale of investment securities |
|
|
— |
|
|
|
403 |
|
|
— |
|
|
1,840 |
|
|
Net gain (loss) on sale of loans |
|
|
— |
|
|
|
138 |
|
|
(3 |
) |
|
584 |
|
|
Other |
|
|
76 |
|
|
|
57 |
|
|
1,359 |
|
|
237 |
|
|
Total noninterest income |
|
|
615 |
|
|
|
1,223 |
|
|
3,039 |
|
|
5,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
5,513 |
|
|
|
5,493 |
|
|
16,518 |
|
|
16,576 |
|
|
Occupancy |
|
|
1,682 |
|
|
|
1,636 |
|
|
4,924 |
|
|
4,855 |
|
|
Equipment |
|
|
1,317 |
|
|
|
1,079 |
|
|
3,749 |
|
|
3,273 |
|
|
Federal deposit insurance premiums |
|
|
145 |
|
|
|
141 |
|
|
429 |
|
|
424 |
|
|
Other general and administrative expenses |
|
|
1,112 |
|
|
|
1,215 |
|
|
3,291 |
|
|
3,602 |
|
|
Total noninterest expense |
|
|
9,769 |
|
|
|
9,564 |
|
|
28,911 |
|
|
28,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
5,296 |
|
|
|
5,689 |
|
|
16,946 |
|
|
18,064 |
|
|
Income
taxes |
|
|
1,405 |
|
|
|
1,527 |
|
|
4,235 |
|
|
4,831 |
|
|
Net income |
|
$ |
3,891 |
|
|
$ |
4,162 |
|
$ |
12,711 |
|
$ |
13,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
|
$ |
0.44 |
|
|
$ |
0.46 |
|
$ |
1.42 |
|
$ |
1.45 |
|
|
Diluted
earnings per share |
|
$ |
0.44 |
|
|
$ |
0.46 |
|
$ |
1.41 |
|
$ |
1.44 |
|
|
Cash
dividends paid per common share |
|
$ |
0.23 |
|
|
$ |
0.23 |
|
$ |
0.69 |
|
$ |
0.69 |
|
|
Basic
weighted-average shares outstanding |
|
|
8,802,010 |
|
|
|
9,012,398 |
|
|
8,885,626 |
|
|
9,086,447 |
|
|
Diluted
weighted-average shares outstanding |
|
|
8,846,611 |
|
|
|
9,056,569 |
|
|
8,938,808 |
|
|
9,131,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Territorial
Bancorp Inc. and Subsidiaries |
|
Consolidated Balance
Sheets (Unaudited) |
|
(Dollars in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
September
30, |
|
December
31, |
|
|
|
2022 |
|
2021 |
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
36,286 |
|
|
$ |
99,859 |
|
|
Investment
securities available for sale |
|
|
21,142 |
|
|
|
— |
|
|
Investment
securities held to maturity, at amortized cost (fair value of
$585,752 and $634,987 at September 30, 2022 and December 31, 2021,
respectively). |
|
|
717,434 |
|
|
|
636,442 |
|
|
Loans
receivable, net |
|
|
1,295,044 |
|
|
|
1,302,824 |
|
|
Federal Home
Loan Bank stock, at cost |
|
|
8,197 |
|
|
|
8,173 |
|
|
Federal
Reserve Bank stock, at cost |
|
|
3,171 |
|
|
|
3,158 |
|
|
Accrued
interest receivable |
|
|
6,061 |
|
|
|
5,786 |
|
|
Premises and
equipment, net |
|
|
6,114 |
|
|
|
4,065 |
|
|
Right-of-use
asset, net |
|
|
14,649 |
|
|
|
9,982 |
|
|
Bank-owned
life insurance |
|
|
47,583 |
|
|
|
51,423 |
|
|
Deferred
income tax assets, net |
|
|
2,335 |
|
|
|
1,927 |
|
|
Prepaid
expenses and other assets |
|
|
6,807 |
|
|
|
6,963 |
|
|
Total assets |
|
$ |
2,164,823 |
|
|
$ |
2,130,602 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Deposits |
|
$ |
1,711,853 |
|
|
$ |
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 |
|
|
24,105 |
|
|
|
22,638 |
|
|
Lease liability |
|
|
15,396 |
|
|
|
10,744 |
|
|
Income taxes payable |
|
|
2,684 |
|
|
|
1,863 |
|
|
Advance payments by borrowers for taxes and insurance |
|
|
3,040 |
|
|
|
6,207 |
|
|
Total liabilities |
|
|
1,908,078 |
|
|
|
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 9,113,668 and 9,324,060 shares at September 30,
2022 and December 31, 2021, respectively. |
|
|
91 |
|
|
|
93 |
|
|
Additional paid-in capital |
|
|
52,440 |
|
|
|
56,951 |
|
|
Unearned ESOP shares |
|
|
(3,058 |
) |
|
|
(3,425 |
) |
|
Retained earnings |
|
|
214,787 |
|
|
|
208,227 |
|
|
Accumulated other comprehensive loss |
|
|
(7,515 |
) |
|
|
(5,524 |
) |
|
Total stockholders’ equity |
|
|
256,745 |
|
|
|
256,322 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
2,164,823 |
|
|
$ |
2,130,602 |
|
|
|
|
|
|
|
|
|
|
|
Territorial Bancorp Inc. and Subsidiaries |
|
|
Selected Financial Data (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized): |
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
|
|
|
|
0.71 |
% |
|
|
0.78 |
% |
|
|
|
Return on average
equity |
|
|
|
|
|
5.98 |
% |
|
|
6.53 |
% |
|
|
|
Net interest
margin on average interest earning assets |
|
|
2.75 |
% |
|
|
2.72 |
% |
|
|
|
Efficiency ratio
(1) |
|
|
|
|
|
65.32 |
% |
|
|
63.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September |
|
December |
|
|
|
|
|
|
|
|
|
|
30, 2022 |
|
|
|
31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance
Sheet Data: |
|
|
|
|
|
|
|
|
|
|
Book value per
share (2) |
|
|
|
|
$28.17 |
|
|
$27.49 |
|
|
|
|
Stockholders'
equity to total assets |
|
|
|
|
11.86% |
|
|
|
12.03% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands): |
|
|
|
|
|
|
|
|
|
|
Delinquent loans
90 days past due and not accruing |
|
$227 |
|
|
$244 |
|
|
|
|
Non-performing
assets (3) |
|
|
|
$2,001 |
|
|
$3,280 |
|
|
|
|
Allowance for loan
losses |
|
|
|
|
$2,015 |
|
|
$2,669 |
|
|
|
|
Non-performing
assets to total assets |
|
|
|
0.09% |
|
|
|
0.15% |
|
|
|
|
Allowance for loan
losses to total loans |
|
|
|
0.16% |
|
|
|
0.20% |
|
|
|
|
Allowance for loan
losses to non-performing assets |
|
|
100.70% |
|
|
|
81.37% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
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