Territorial Bancorp Inc. (NASDAQ:TBNK) (the “Company”),
headquartered in Honolulu, Hawaii, the holding company parent of
Territorial Savings Bank, announced net income of $3.69 million or
$0.40 per diluted share for the three months ended September 30,
2015, compared to $3.46 million or $0.37 per diluted share for the
three months ended September 30, 2014.
The Company also announced that its Board of Directors approved
a quarterly cash dividend of $0.17 per share. The dividend is
expected to be paid on November 27, 2015 to stockholders of record
as of November 12, 2015.
Allan Kitagawa, Chairman and Chief Executive Officer, said, “Our
loan portfolio grew by 20.1% during the first nine months of
2015. The growth in our loan portfolio allowed our net
interest income to increase by 6.7% for the three months ended
September 30, 2015 as compared to the three months ended September
30, 2014. Our net income for the three months ended September
30, 2015 has grown by 6.5% compared to the three months ended
September 30, 2014 while our fully-diluted earnings per share rose
to $0.40 per share from $0.37 per share. Our strong
performance will allow us to pay our 23rd consecutive quarterly
dividend on November 27, 2015.”
Interest Income
Net interest income after provision for loan losses increased to
$14.27 million for the three months ended September 30, 2015 from
$13.42 million for the three months ended September 30, 2014. Total
interest and dividend income was $15.97 million for the three
months ended September 30, 2015 compared to $14.99 million for the
three months ended September 30, 2014. The $981,000 growth in
interest and dividend income was primarily due to a $1.79 million
increase in interest earned on loans which resulted from the
increase in loans receivable. The increase in interest income
on loans was offset by a $797,000 decline in interest income from
investment securities due to a net reduction in our investment
securities portfolio as repayments exceeded securities
purchased.
Interest Expense and Provision for Loan
Losses
Total interest expense increased to $1.63 million for the three
months ended September 30, 2015 from $1.55 million for the three
months ended September 30, 2014. Total interest expense on
deposits increased to $1.20 million for the three months ended
September 30, 2015 from $1.14 million for the three months ended
September 30, 2014 due to an increase in total deposits. Interest
expenses on advances from the Federal Home Loan Bank rose by
$144,000 due to an increase in Federal Home Loan Bank
advances. Interest expense on securities sold under
agreements to repurchase declined by $125,000 because of a decrease
in these borrowings. During the quarter ended September 30,
2015, the provision for loan losses was $71,000 compared to a
$23,000 provision for the three months ended September 30,
2014.
Noninterest Income
Noninterest income was $1.19 million for the three months ended
September 30, 2015 compared to $1.40 million for the three months
ended September 30, 2014. The reduction in noninterest income
was primarily due to a $392,000 decrease in the gain on sale of
investment securities that occurred because there were no
securities sold during the three months ended September 30,
2015.
Noninterest Expense
Noninterest expense was $9.37 million for the three months ended
September 30, 2015 compared to $9.08 million for the three months
ended September 30, 2014. Salaries and employee benefits was
$5.60 million for the three months ended September 30, 2015
compared to $5.40 million for the three months ended September 30,
2014. The increase in salaries and employee benefits expense
is primarily due to higher loan officer compensation that occurred
primarily because of the increase in new loan originations and the
hiring of additional staff to originate loans and to handle the
additional workload associated with an increase in regulatory
requirements. The rise in these expenses was offset by an
increase in the direct costs of new loan originations.
Assets and Equity
Total assets increased to $1.784 billion at September 30, 2015
from $1.692 billion at December 31, 2014. Loans receivable
grew by $195.08 million or 20.1% to $1.163 billion at September 30,
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 $53.32 million
increase in deposits, a $35.59 million decrease in cash and cash
equivalents, $64.18 million received from the net repayments and
sales of investment securities and a $49.00 million increase in
Federal Home Loan Bank advances. Securities sold under
agreements to repurchase decreased to $55.00 million at September
30, 2015 from $72.00 million at December 31, 2014. Deposits
increased to $1.413 billion at September 30, 2015 from $1.360
billion at December 31, 2014. Total stockholders’ equity
increased to $218.37 million at September 30, 2015 from $216.38
million at December 31, 2014. The increase in stockholders’
equity occurred as the Company’s net income for the year exceeded
share repurchases and dividends paid to shareholders.
Share Repurchases
Through September 30, 2015, the Company has repurchased
3,060,518 shares of stock or 25.02% of the shares issued in its
initial public offering in 2009. The Company uses share repurchases
as part of its overall program to enhance shareholder value.
The Company also considers the effect of repurchases on its
tangible book value per share. At the Company’s current share
price level, the amount of dilution to tangible book value may
limit the Company’s repurchasing of shares. The Company will
closely monitor this issue and conduct repurchases as it makes
financial sense, depending on market and other conditions at any
given time.
Asset Quality
Total delinquent loans 90 days or more past due and not accruing
totaled $1,516,000 (5 loans) at September 30, 2015, compared to
$758,000 (4 loans) at December 31, 2014. Non-performing
assets totaled $5.39 million at September 30, 2015 compared to
$4.45 million at December 31, 2014. The ratio of
non-performing assets to total assets rose to 0.30% at September
30, 2015 from 0.26% at December 31, 2014 but continues to remain
one of the lowest in the country. The allowance for loan
losses at September 30, 2015 was $2.06 million and represented
0.18% of total loans compared to $1.69 million and 0.17% of total
loans as of December 31, 2014.
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 28 branch offices in the state of
Hawaii. For additional information, please visit the
Company’s website at: https://www.territorialsavings.net.
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 market and other conditions that would affect our
ability to repurchase our shares of common stock.
- 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 |
|
Nine Months Ended |
|
|
|
|
|
|
|
|
9/30/2015 |
|
9/30/2014 |
|
9/30/2015 |
|
9/30/2014 |
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
|
$ |
11,809 |
|
|
$ |
10,020 |
|
|
$ |
33,761 |
|
|
$ |
29,320 |
|
|
Investment securities |
|
|
4,098 |
|
|
|
4,895 |
|
|
|
12,895 |
|
|
|
15,055 |
|
|
Other investments |
|
|
64 |
|
|
|
75 |
|
|
|
213 |
|
|
|
153 |
|
|
|
|
|
|
Total interest and dividend income |
|
|
15,971 |
|
|
|
14,990 |
|
|
|
46,869 |
|
|
|
44,528 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
1,198 |
|
|
|
1,138 |
|
|
|
3,486 |
|
|
|
3,332 |
|
|
Advances from the Federal Home Loan Bank |
|
|
211 |
|
|
|
67 |
|
|
|
438 |
|
|
|
199 |
|
|
Securities sold under agreements to repurchase |
|
|
221 |
|
|
|
346 |
|
|
|
776 |
|
|
|
1,032 |
|
|
|
|
|
|
Total interest expense |
|
|
1,630 |
|
|
|
1,551 |
|
|
|
4,700 |
|
|
|
4,563 |
|
|
|
|
|
|
Net interest income |
|
|
14,341 |
|
|
|
13,439 |
|
|
|
42,169 |
|
|
|
39,965 |
|
Provision for loan losses |
|
|
71 |
|
|
|
23 |
|
|
|
366 |
|
|
|
188 |
|
|
|
|
|
|
Net interest income after provision for loan losses |
|
|
14,270 |
|
|
|
13,416 |
|
|
|
41,803 |
|
|
|
39,777 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
Service fees on loan and deposit accounts |
|
|
590 |
|
|
|
555 |
|
|
|
1,577 |
|
|
|
1,578 |
|
|
Income on bank-owned life insurance |
|
|
259 |
|
|
|
265 |
|
|
|
770 |
|
|
|
797 |
|
|
Gain on sale of investment securities |
|
|
- |
|
|
|
392 |
|
|
|
476 |
|
|
|
1,047 |
|
|
Gain on sale of loans |
|
|
201 |
|
|
|
118 |
|
|
|
440 |
|
|
|
283 |
|
|
Other |
|
|
|
|
|
138 |
|
|
|
68 |
|
|
|
419 |
|
|
|
330 |
|
|
|
|
|
|
Total noninterest income |
|
|
1,188 |
|
|
|
1,398 |
|
|
|
3,682 |
|
|
|
4,035 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
5,596 |
|
|
|
5,402 |
|
|
|
15,759 |
|
|
|
16,062 |
|
|
Occupancy |
|
|
|
1,483 |
|
|
|
1,474 |
|
|
|
4,348 |
|
|
|
4,305 |
|
|
Equipment |
|
|
|
1,025 |
|
|
|
956 |
|
|
|
2,923 |
|
|
|
2,775 |
|
|
Federal deposit insurance premiums |
|
|
214 |
|
|
|
202 |
|
|
|
634 |
|
|
|
602 |
|
|
Other general and administrative expenses |
|
|
1,048 |
|
|
|
1,045 |
|
|
|
3,449 |
|
|
|
2,946 |
|
|
|
|
|
|
Total noninterest expense |
|
|
9,366 |
|
|
|
9,079 |
|
|
|
27,113 |
|
|
|
26,690 |
|
Income before income taxes |
|
|
6,092 |
|
|
|
5,735 |
|
|
|
18,372 |
|
|
|
17,122 |
|
Income taxes |
|
|
|
2,406 |
|
|
|
2,273 |
|
|
|
7,323 |
|
|
|
6,479 |
|
|
|
|
|
|
Net income |
|
$ |
3,686 |
|
|
$ |
3,462 |
|
|
$ |
11,049 |
|
|
$ |
10,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.41 |
|
|
$ |
0.38 |
|
|
$ |
1.22 |
|
|
$ |
1.16 |
|
Diluted earnings per share |
|
$ |
0.40 |
|
|
$ |
0.37 |
|
|
$ |
1.19 |
|
|
$ |
1.15 |
|
Cash dividends declared per common share |
|
$ |
0.17 |
|
|
$ |
0.15 |
|
|
$ |
0.49 |
|
|
$ |
0.44 |
|
Basic weighted-average shares outstanding |
|
|
9,085,725 |
|
|
|
9,218,745 |
|
|
|
9,086,481 |
|
|
|
9,190,476 |
|
Diluted weighted-average shares outstanding |
|
|
9,301,500 |
|
|
|
9,323,306 |
|
|
|
9,250,835 |
|
|
|
9,283,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TERRITORIAL BANCORP INC. AND
SUBSIDIARIES |
Consolidated Balance Sheets (Unaudited) |
(Dollars in thousands, except share data) |
|
Assets |
|
9/30/2015 |
|
12/31/2014 |
Cash and cash equivalents |
|
$ |
39,466 |
|
|
$ |
75,060 |
|
Investment securities held to maturity, at amortized cost |
|
|
|
|
|
(fair value of $520,534 and $586,710 at September 30, 2015
and |
|
|
|
|
|
December 31, 2014, respectively) |
|
|
508,747 |
|
|
|
572,922 |
|
Loans receivable, net |
|
|
1,163,292 |
|
|
|
968,212 |
|
Loans held for sale |
|
|
225 |
|
|
|
1,048 |
|
Federal Home Loan Bank stock, at cost |
|
|
4,590 |
|
|
|
11,234 |
|
Federal Reserve Bank stock, at cost |
|
|
2,989 |
|
|
|
2,925 |
|
Accrued interest receivable |
|
|
4,742 |
|
|
|
4,436 |
|
Premises and equipment, net |
|
|
5,026 |
|
|
|
5,629 |
|
Bank-owned life insurance |
|
|
42,072 |
|
|
|
41,303 |
|
Current income taxes receivable |
|
|
1,523 |
|
|
|
- |
|
Deferred income taxes receivable |
|
|
8,366 |
|
|
|
7,254 |
|
Prepaid expenses and other assets |
|
|
2,477 |
|
|
|
1,874 |
|
|
|
|
|
|
Total assets |
|
$ |
1,783,515 |
|
|
$ |
1,691,897 |
|
Liabilities and Stockholders'
Equity |
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Deposits |
|
|
|
$ |
1,412,997 |
|
|
$ |
1,359,679 |
|
|
Advances from the Federal Home Loan Bank |
|
|
64,000 |
|
|
|
15,000 |
|
|
Securities sold under agreements to repurchase |
|
|
55,000 |
|
|
|
72,000 |
|
|
Accounts payable and accrued expenses |
|
|
28,582 |
|
|
|
24,098 |
|
|
Current income taxes payable |
|
|
1,476 |
|
|
|
826 |
|
|
Advance payments by borrowers for taxes and insurance |
|
|
3,094 |
|
|
|
3,916 |
|
|
|
|
|
|
Total liabilities |
|
|
1,565,149 |
|
|
|
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 9,698,420 and 9,919,064 shares |
|
|
|
|
|
|
at September 30, 2015 and December 31, 2014, respectively |
|
|
97 |
|
|
|
99 |
|
|
Additional paid-in capital |
|
|
70,295 |
|
|
|
75,229 |
|
|
Unearned ESOP shares |
|
|
(6,484 |
) |
|
|
(6,851 |
) |
|
Retained earnings |
|
|
159,785 |
|
|
|
153,289 |
|
|
Accumulated other comprehensive loss |
|
|
(5,327 |
) |
|
|
(5,388 |
) |
|
|
|
|
|
Total stockholders' equity |
|
|
218,366 |
|
|
|
216,378 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
1,783,515 |
|
|
$ |
1,691,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TERRITORIAL BANCORP INC. AND SUBSIDIARIES |
|
|
|
|
|
|
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|
|
|
Selected Financial Data (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
|
|
2015 |
|
2014 |
|
|
Performance
Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
|
|
|
|
0.83 |
% |
|
|
0.83 |
% |
|
|
Return on
average equity |
|
|
|
|
|
6.64 |
% |
|
|
6.38 |
% |
|
|
Net
interest margin on average interest earning assets |
|
|
3.39 |
% |
|
|
3.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September |
|
At December |
|
|
|
|
|
|
|
|
|
30, 2015 |
|
|
|
31, 2014 |
|
|
|
Selected
Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
per share (1) |
|
|
|
|
$ |
22.52 |
|
|
$ |
21.81 |
|
|
|
Stockholders' equity to total assets |
|
|
|
|
12.24 |
% |
|
|
12.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent
loans 90 days or more past due and not accruing (2) |
|
$ |
1,516 |
|
|
$ |
758 |
|
|
|
Non-performing assets (2) |
|
|
|
$ |
5,389 |
|
|
$ |
4,453 |
|
|
|
Allowance
for loan losses |
|
|
|
|
$ |
2,062 |
|
|
$ |
1,691 |
|
|
|
Non-performing assets to total assets |
|
|
|
|
0.30 |
% |
|
|
0.26 |
% |
|
|
Allowance
for loan losses to total loans |
|
|
|
0.18 |
% |
|
|
0.17 |
% |
|
|
Allowance
for loan losses to non-performing assets |
|
|
38.26 |
% |
|
|
37.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
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Contact: Walter Ida
(808) 946-1400
Territorial Bancorp (NASDAQ:TBNK)
Historical Stock Chart
From Feb 2024 to Mar 2024
Territorial Bancorp (NASDAQ:TBNK)
Historical Stock Chart
From Mar 2023 to Mar 2024