Territorial Bancorp Inc. Announces Third Quarter 2024 Results

Territorial Bancorp Inc. recently revealed its financial performance for the third quarter of 2024, ending on September 30. The company, serving as the holding entity for Territorial Savings Bank and headquartered in Honolulu, Hawaii, declared a net loss of $1,318,000, equating to $0.15 per diluted share for the said period.

Furthermore, the Board of Directors sanctioned a dividend payout of $0.01 per share. This dividend is scheduled to be disbursed on November 22, 2024, to shareholders of record as of November 8, 2024.

Additionally, Territorial Bancorp provided an update on its merger with Hope Bancorp, Inc. (NASDAQ: HOPE), with which it penned a definitive agreement back in April 2024. Under this agreement, Territorial Bancorp shareholders will receive 0.8048 shares of Hope Bancorp common stock for each share of Territorial Bancorp common stock held. The transaction values at about $78.60 million, based on Hope Bancorp’s closing stock price on April 26, 2024. The merger is designed to be a tax-free reorganization for Territorial stockholders.

In terms of financial results, Territorial Bancorp noted a decrease in net interest income by $2.55 million compared to the same quarter last year. Despite interest income accumulating to $18.31 million due to increases in other investments and loans, interest expenses surged by $3.48 million, particularly driven by a rise in deposit interest and Federal Reserve Bank borrowings.

Noninterest expenses saw an increase of $333,000, mainly attributed to higher general and administrative costs, including merger-related expenditures and currency losses due to the Lahaina wildfire. The company reported an income tax benefit of $611,000 for the quarter, resulting in an effective tax rate of (31.67)%.

As of September 30, 2024, Territorial Bancorp carried total assets of $2.20 billion, with deposits escalating by $33.68 million from the end of 2023, along with reductions in investment securities and loans receivable balances. The company’s asset quality remained solid with no delinquent mortgage loans past 90 days due, and a negligible ratio of non-performing assets to total assets standing at 0.11%.

Territorial Bancorp Inc., founded in 1921 and presently overseeing 28 branch offices in Hawaii, continues to focus on maintaining its strong asset quality and adhering to strict underwriting standards.

This financial update comes as Territorial Bancorp navigates through its quarterly results and progresses towards the anticipated merger with Hope Bancorp.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Territorial Bancorp’s 8K filing here.

About Territorial Bancorp

Territorial Bancorp Inc operates as the holding company for Territorial Savings Bank that engages in the provision of various financial services to individuals, families, and businesses in the State of Hawaii. The company offers a range of deposit accounts, including passbook and statement savings, money market, commercial and regular checking, and Super NOW accounts, as well as certificates of deposit.