- Earnings per share for the three months ended March 31, 2015
rose to $0.38 per share compared to $0.37 per share for the three
months ended March 31, 2014.
- Net interest income for the three months ended March 31, 2015
was $13.77 million, compared to $13.16 million for the three months
ended March 31, 2014, an increase of 4.7%.
- Loans receivable and loans held for sale grew by $72.57 million
or 7.5% as compared to December 31, 2014.
- Deposits grew by $21.78 million or 1.6% as compared to December
31, 2014.
- Board of Directors approved a quarterly cash dividend of $0.16
per share. This is Territorial Bancorp Inc.'s 21st consecutive
quarterly dividend.
- Through March 31, 2015, the Company has repurchased 2,947,894
shares of common stock, or 24.1% of the total shares issued in
2009, when we became a public company.
Territorial Bancorp Inc. (Nasdaq:TBNK) (the "Company"),
headquartered in Honolulu, Hawaii, the holding company parent of
Territorial Savings Bank, announced net income of $3.53 million or
$0.38 per diluted share for the three months ended March 31, 2015,
compared to $3.46 million or $0.37 per diluted share for the three
months ended March 31, 2014. Cash dividends paid during the first
quarter of 2015 was $0.16 per share of common stock, a 14.3%
increase compared to $0.14 per share of common stock in the first
quarter of 2014.
The Company also announced that its Board of Directors approved
a payment of a quarterly cash dividend of $0.16 per share. The
dividend is expected to be paid on May 28, 2015 to stockholders of
record as of May 14, 2015.
Allan Kitagawa, Chairman and Chief Executive Officer, said, "The
Company continues to perform well. Our loan portfolio grew by 7.5%
during the first quarter while net interest income rose by 4.7%. We
continue to focus on improving shareholder returns as we repurchase
common stock and pay dividends. The dividend, which will be paid on
May 28, 2015, represents our 21st consecutive quarterly dividend
payment."
Interest Income
Net interest income after provision for loan losses increased to
$13.58 million for the three months ended March 31, 2015 from
$13.15 million for the three months ended March 31, 2014. Total
interest and dividend income was $15.29 million for the three
months ended March 31, 2015 compared to $14.66 million for the
three months ended March 31, 2014. The $631,000 growth in interest
and dividend income was primarily due to a $1.15 million increase
in interest earned on loans due to growth in loans receivable. The
increase in interest income on loans was offset by a $551,000
decline in interest earned on investment securities that occurred
primarily because of a decrease in the size of the investment
portfolio.
Interest Expense and Provision for Loan
Losses
Total interest expense increased to $1.52 million for the three
months ended March 31, 2015 from $1.50 million for the three months
ended March 31, 2014. During the quarter, interest expense on
deposits rose by $43,000 due to an increase in total deposits.
Interest expense on securities sold under agreements to repurchase
declined by $31,000 because of a decrease in these
borrowings. During the quarter ended March 31, 2015, the
provision for loan losses was $194,000 compared to a $9,000
provision for the three months ended March 31, 2014.
Noninterest Income
Noninterest income was $1.25 million for the three months ended
March 31, 2015 compared to $1.36 million for the three months ended
March 31, 2014. The reduction in noninterest income was
primarily due to a $110,000 decrease in gain on sale of investment
securities that occurred because of a reduction in the amount of
securities sold.
Noninterest Expense
Noninterest expense was $8.90 million for the three months ended
March 31, 2015 compared to $8.86 million for the three months ended
March 31, 2014. There was an increase in other general and
administrative expenses which was offset by a decrease in salaries
and employee benefits.
Assets and Equity
Total assets increased to $1.715 billion at March 31, 2015 from
$1.692 billion at December 31, 2014. Loans receivable grew to
$1.039 billion at March 31, 2015 from $968.21 million at December
31, 2014 as residential mortgage loan originations exceeded loan
repayments and sales. The growth in loans receivable was funded
primarily by a $21.78 million increase in deposits, a $29.29
million decrease in cash and cash equivalents and $20.46 million
received from repayments and sales of mortgage-backed
securities. Deposits increased to $1.381 billion at March 31,
2015 from $1.360 billion at December 31, 2014. Total
stockholders' equity decreased to $215.15 million at March 31, 2015
from $216.38 million at December 31, 2014. The decrease in
stockholders' equity occurred as the Company's share repurchases
exceeded the net income for the quarter. Through March 31,
2015, the Company has repurchased 2,947,894 shares of stock or
24.1% of the shares issued in its initial public offering in
2009.
Asset Quality
Total delinquent loans 90 days or more past due and not accruing
totaled $842,000 (4 loans) at March 31, 2015, compared to $758,000
(4 loans) at December 31, 2014. Non-performing assets totaled $4.32
million at March 31, 2015 compared to $4.45 million at December 31,
2014. The ratio of non-performing assets to total assets
declined to 0.25% at March 31, 2015 from 0.26% at December 31, 2014
and continues to remain one of the lowest in the country. The
allowance for loan losses at March 31, 2015 was $1.87 million and
represented 0.18% of total loans compared to $1.69 million and
0.17% of total loans as of December 31, 2014.
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 28 branch offices in the
state of Hawaii.
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, including those set forth
in the Company's filings with the Securities and Exchange
Commission, could cause actual results to differ materially from
the anticipated results or other expectations expressed in the
forward-looking statements:
- general economic conditions, either nationally, internationally
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;
- our ability to enter new markets successfully and capitalize on
growth opportunities;
- our ability to successfully integrate acquired entities, if
any;
- changes in consumer 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;
- changes in our financial condition or results of operations
that reduce capital available to pay dividends; and
- changes in the financial condition or future prospects of
issuers of securities that we own.
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.
TERRITORIAL BANCORP
INC. AND SUBSIDIARIES |
Consolidated Statements of
Income (Unaudited) |
(Dollars in thousands, except
per share data) |
|
Three Months
Ended |
|
3/31/2015 |
3/31/2014 |
Interest and dividend income: |
|
|
Investment securities |
$ 4,523 |
$ 5,074 |
Loans |
10,686 |
9,540 |
Dividends on FHLB stock |
3 |
3 |
Other investments |
76 |
40 |
Total interest and dividend income |
15,288 |
14,657 |
Interest expense: |
|
|
Deposits |
1,134 |
1,091 |
Advances from the Federal Home Loan
Bank |
70 |
66 |
Securities sold under agreements to
repurchase |
312 |
343 |
Total interest expense |
1,516 |
1,500 |
Net interest income |
13,772 |
13,157 |
Provision for loan losses |
194 |
9 |
Net interest income after provision for
loan losses |
13,578 |
13,148 |
Noninterest income: |
|
|
Service fees on loan and deposit
accounts |
460 |
499 |
Income on bank-owned life insurance |
255 |
268 |
Gain on sale of investment
securities |
236 |
346 |
Gain on sale of loans |
129 |
79 |
Other |
166 |
166 |
Total noninterest income |
1,246 |
1,358 |
Noninterest expense: |
|
|
Salaries and employee benefits |
5,099 |
5,363 |
Occupancy |
1,437 |
1,422 |
Equipment |
945 |
914 |
Federal deposit insurance premiums |
209 |
199 |
Other general and administrative
expenses |
1,214 |
966 |
Total noninterest expense |
8,904 |
8,864 |
Income before income taxes |
5,920 |
5,642 |
Income taxes |
2,394 |
2,180 |
Net income |
$ 3,526 |
$ 3,462 |
|
|
|
Basic earnings per share |
$ 0.39 |
$ 0.38 |
Diluted earnings per share |
$ 0.38 |
$ 0.37 |
Cash dividends declared per common share |
$ 0.16 |
$ 0.14 |
Basic weighted-average shares
outstanding |
9,120,720 |
9,187,540 |
Diluted weighted-average shares
outstanding |
9,319,814 |
9,380,160 |
|
|
|
TERRITORIAL BANCORP
INC. AND SUBSIDIARIES |
Consolidated Balance Sheets
(Unaudited) |
(Dollars in thousands, except
share data) |
|
Assets |
3/31/2015 |
12/31/2014 |
Cash and cash equivalents |
$ 45,774 |
$ 75,060 |
Investment securities held to maturity, at
amortized cost (fair value of $569,832 and $586,710 at March 31,
2015 and December 31, 2014, respectively) |
552,461 |
572,922 |
Federal Home Loan Bank stock, at cost |
11,112 |
11,234 |
Federal Reserve Bank stock, at cost |
2,949 |
2,925 |
Loans held for sale |
2,910 |
1,048 |
Loans receivable, net |
1,038,922 |
968,212 |
Accrued interest receivable |
4,583 |
4,436 |
Premises and equipment, net |
5,445 |
5,629 |
Bank-owned life insurance |
41,558 |
41,303 |
Deferred income taxes, net |
7,486 |
7,254 |
Prepaid expenses and other assets |
2,190 |
1,874 |
Total assets |
$ 1,715,390 |
$ 1,691,897 |
Liabilities and Stockholders'
Equity |
|
|
Liabilities: |
|
|
Deposits |
$ 1,381,461 |
$ 1,359,679 |
Advances from the Federal Home Loan
Bank |
27,000 |
15,000 |
Securities sold under agreements to
repurchase |
60,000 |
72,000 |
Accounts payable and accrued
expenses |
26,857 |
24,098 |
Investment purchases pending
settlement |
1,166 |
-- |
Current income taxes payable |
1,051 |
826 |
Advance payments by borrowers for taxes
and insurance |
2,710 |
3,916 |
Total liabilities |
1,500,245 |
1,475,519 |
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 9,720,959 and 9,919,064
shares at March 31, 2015 and December 31, 2014, respectively |
97 |
99 |
Additional paid-in capital |
71,806 |
75,229 |
Unearned ESOP shares |
(6,728) |
(6,851) |
Retained earnings |
155,318 |
153,289 |
Accumulated other comprehensive loss |
(5,348) |
(5,388) |
Total stockholders' equity |
215,145 |
216,378 |
Total liabilities and stockholders'
equity |
$ 1,715,390 |
$ 1,691,897 |
|
|
|
TERRITORIAL BANCORP
INC. AND SUBSIDIARIES |
Selected Financial Data
(Unaudited) |
March 31,
2015 |
|
|
Three Months Ended |
|
March 31, |
|
2015 |
2014 |
Performance Ratios (annualized): |
|
|
|
|
|
Return on average assets |
0.83% |
0.85% |
Return on average equity |
6.50% |
6.54% |
Net interest margin on average interest
earning assets |
3.36% |
3.36% |
|
|
|
|
|
|
|
At March |
At December |
|
31, 2015 |
31, 2014 |
Selected Balance Sheet Data: |
|
|
|
|
|
Book value per share (1) |
$22.13 |
$21.81 |
Stockholders' equity to total assets |
12.54% |
12.79% |
|
|
|
Asset Quality |
|
|
(Dollars in thousands): |
|
|
|
|
|
Delinquent loans 90 days or more past due and
not accruing (2) |
$842 |
$758 |
Non-performing assets (2) |
4,315 |
4,453 |
Allowance for loan losses |
1,872 |
1,692 |
Non-performing assets to total assets |
0.25% |
0.26% |
Allowance for loan losses to total loans |
0.18% |
0.17% |
Allowance for loan losses to non-performing
assets |
43.38% |
38.00% |
|
|
|
Note: |
|
(1) Book value per share is equal
to stockholders' equity divided by number of shares issued and
outstanding |
(2) Amounts are net of
charge-offs |
CONTACT: Walter Ida
(808) 946-1400
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