Territorial Bancorp Inc. Announces Second Quarter 2024 Results
Territorial Bancorp Inc. (NASDAQ: TBNK) reported a net loss of $775,000, or $(0.09) per diluted share, for Q2 2024. The company announced a $0.01 per share dividend payable on August 23, 2024. Key highlights include:
- Strong capital position with tier one leverage ratio of 11.62% and risk-based capital ratio of 28.98%
- Low non-performing assets ratio of 0.06%
- Robust liquidity with $83 million in cash and access to $951 million in total liquidity
- Pending merger with Hope Bancorp, Inc. valued at approximately $78.6 million
- Net interest income decreased by $2.85 million year-over-year
- Total assets decreased to $2.17 billion from $2.24 billion in December 2023
- Deposits declined by $63.85 million to $1.57 billion
Territorial Bancorp Inc. (NASDAQ: TBNK) ha riportato una perdita netta di $775.000, ovvero $(0.09) per azione diluita, nel secondo trimestre del 2024. L'azienda ha annunciato un dividendo di $0,01 per azione da pagare il 23 agosto 2024. I punti salienti includono:
- Solida posizione di capitale con un rapporto di leva di primo livello dell'11.62% e un rapporto di capitale basato sul rischio del 28.98%
- Basso rapporto di attivi non performanti dello 0.06%
- Liquidità robusta con $83 milioni in contanti e accesso a $951 milioni in liquidità totale
- Fusione in sospeso con Hope Bancorp, Inc. valutata a circa $78.6 milioni
- Il reddito da interessi netti è diminuito di $2.85 milioni rispetto all'anno precedente
- Le attività totali sono scese a $2.17 miliardi rispetto ai $2.24 miliardi di dicembre 2023
- I depositi sono diminuiti di $63.85 milioni a $1.57 miliardi
Territorial Bancorp Inc. (NASDAQ: TBNK) reportó una pérdida neta de $775,000, o $(0.09) por acción diluida, para el segundo trimestre de 2024. La compañía anunció un dividendo de $0.01 por acción que se pagará el 23 de agosto de 2024. Los aspectos destacados incluyen:
- Fuerte posición de capital con un ratio de apalancamiento de nivel uno del 11.62% y un ratio de capital basado en riesgos del 28.98%
- Bajo ratio de activos no productivos del 0.06%
- Liquidez robusta con $83 millones en efectivo y acceso a $951 millones en liquidez total
- Fusión pendiente con Hope Bancorp, Inc. valorada en aproximadamente $78.6 millones
- Los ingresos netos por intereses disminuyeron en $2.85 millones en comparación con el año anterior
- Los activos totales disminuyeron a $2.17 mil millones desde $2.24 mil millones en diciembre de 2023
- Los depósitos disminuyeron en $63.85 millones a $1.57 mil millones
테리토리얼 뱅콥(Territorial Bancorp Inc.) (NASDAQ: TBNK)는 2024년 2분기 동안 순손실이 $775,000, 즉 희석 주당 $0.09에 해당한다고 보고했습니다. 회사는 2024년 8월 23일 지급될 주당 $0.01 배당금을 발표했습니다. 주요 하이라이트는 다음과 같습니다:
- 11.62%의 1급 레버리지 비율과 28.98%의 위험 기반 자본 비율을 가진 강력한 자본 포지션
- 0.06%의 저조한 비수익 자산 비율
- $83백만의 현금과 $951백만의 총 유동성에 접근할 수 있는 견고한 유동성
- 약 $78.6백만에 평가된 Hope Bancorp, Inc.와의 합병 대기
- 순이자 수익이 전년 대비 $2.85백만 감소
- 총 자산이 2023년 12월의 $2.24십억에서 $2.17십억으로 감소
- 예금이 $1.57십억으로 $63.85백만 감소
Territorial Bancorp Inc. (NASDAQ: TBNK) a signalé une perte nette de 775 000 $, soit $(0,09) par action diluée, pour le deuxième trimestre de 2024. La société a annoncé un dividende de 0,01 $ par action payable le 23 août 2024. Les points forts incluent :
- Position de capital solide avec un ratio de levier de premier niveau de 11,62 % et un ratio de capital basé sur le risque de 28,98 %
- Faible ratio d'actifs non performants de 0,06 %
- Liquidité robuste avec 83 millions de dollars en espèces et accès à un total de 951 millions de dollars en liquidité
- Fusion en attente avec Hope Bancorp, Inc. évaluée à environ 78,6 millions de dollars
- Le revenu net d'intérêts a diminué de 2,85 millions de dollars par rapport à l'année précédente
- Les actifs totaux ont diminué à 2,17 milliards de dollars contre 2,24 milliards de dollars en décembre 2023
- Les dépôts ont diminué de 63,85 millions de dollars à 1,57 milliard de dollars
Territorial Bancorp Inc. (NASDAQ: TBNK) meldete für das zweite Quartal 2024 einen Nettoverlust von 775.000 USD, was $(0,09) pro verwässerter Aktie entspricht. Das Unternehmen kündigte eine an, die am 23. August 2024 zahlbar ist. Zu den wichtigsten Highlights gehören:
- Starke Kapitalposition mit einer Tier-One-Leverage-Quote von 11,62 % und einer risikobasierten Eigenkapitalquote von 28,98 %
- Niedriges Verhältnis von notleidenden Vermögenswerten von 0,06 %
- Robuste Liquidität mit 83 Millionen USD in bar und Zugang zu insgesamt 951 Millionen USD in Liquidität
- Anstehende Fusion mit Hope Bancorp, Inc., die auf etwa 78,6 Millionen USD geschätzt wird
- Zinserträge fielen im Jahresvergleich um 2,85 Millionen USD
- Die Gesamtaktiva sanken von 2,24 Milliarden USD im Dezember 2023 auf 2,17 Milliarden USD
- Die Einlagen gingen um 63,85 Millionen USD auf 1,57 Milliarden USD zurück
- Strong capital ratios with tier one leverage at 11.62% and risk-based capital at 28.98%
- Low non-performing assets ratio of 0.06%
- Robust liquidity position with $951 million available
- Pending merger with Hope Bancorp, Inc. valued at $78.6 million
- Increase in interest income on loans and other investments
- Net loss of $775,000 or $(0.09) per diluted share in Q2 2024
- Net interest income decreased by $2.85 million year-over-year
- Total assets decreased by $70 million from December 2023
- Deposits declined by $63.85 million to $1.57 billion
- Increase in interest expense due to rising short-term interest rates
Territorial Bancorp's Q2 2024 results paint a mixed picture. The net loss of
On the positive side, the bank maintains strong capital ratios, with a tier one leverage ratio of
The pending merger with Hope Bancorp, valued at approximately
The
Overall, while Territorial Bancorp maintains solid asset quality and capital ratios, the net loss, deposit outflows and competitive pressures warrant close monitoring by investors.
The banking sector is facing significant headwinds and Territorial Bancorp's results reflect these industry-wide challenges. The increase in interest expense, particularly on deposits, highlights the intense competition for customer funds in a rising rate environment. This trend is likely to continue, potentially squeezing net interest margins across the sector.
The shift from savings accounts to higher-yielding CDs (
The
The increase in FDIC premium expenses by
Territorial's strong capital ratios and low non-performing assets ratio suggest that well-capitalized, conservatively managed banks can navigate the current environment. However, the sector as a whole may face challenges in balancing growth, risk management and profitability in this complex economic landscape.
- The Company’s tier one leverage and risk-based capital ratios were
11.62% and28.98% , respectively, and the Company is considered to be “well-capitalized” at June 30, 2024. - Ratio of non-performing assets to total assets of
0.06% at June 30, 2024. - Strong liquidity position with
$83 million in cash balances and access to liquidity totaling$951 million as of June 30, 2024.
HONOLULU, Hawaii, July 26, 2024 (GLOBE NEWSWIRE) -- Territorial Bancorp Inc. (NASDAQ: TBNK) (the Company), headquartered in Honolulu, Hawaii, the holding company parent of Territorial Savings Bank, announced a net loss of
The Board of Directors approved a dividend of
Hope Bancorp, Inc. Merger Agreement
As previously announced in a joint news release issued April 29, 2024, Hope Bancorp, Inc. (NASDAQ: HOPE) (Hope Bancorp) and the Company signed a definitive merger agreement. Under the terms of the merger agreement, Company stockholders will receive a fixed exchange ratio of 0.8048 share of Hope Bancorp common stock in exchange for each share of Company common stock they own, in a
Upon completion of the transaction, Hope Bancorp intends to maintain the Territorial franchise in Hawaii and preserve the 100-plus year legacy of the Territorial Savings Bank brand name, culture and commitment to the local communities. The branches will continue to do business under the Territorial Savings Bank brand, as a trade name of Bank of Hope.
The transaction is subject to regulatory approvals, the approval of Territorial stockholders, and the satisfaction of other customary closing conditions.
Interest Income
Net interest income decreased by
Interest Expense
As a result of prolonged increases in short-term interest rates, total interest expense increased by
Noninterest Expense
Noninterest expense increased by
Income Taxes
Income tax benefit for the three months ended June 30, 2024 was
Balance Sheet
Total assets were
Deposits decreased by
Asset Quality
Credit quality continues to be extremely important as the Bank adheres to its strict underwriting standards. The Company had
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.tsbhawaii.bank.
Additional Information and Where to Find it
In connection with the proposed merger, Hope Bancorp, Inc. filed with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 on June 21, 2024, which included a Proxy Statement of Territorial Bancorp Inc. that also constitutes a prospectus of Hope Bancorp, Inc. Territorial Bancorp stockholders are encouraged to read the Registration Statement and the Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information about the proposed merger. Territorial Bancorp stockholders are able to obtain a free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Hope Bancorp and Territorial Bancorp at the SEC’s Internet site (www.sec.gov).
Participants in Solicitation
Territorial Bancorp and its directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the merger. Information concerning Territorial Bancorp’s participants is set forth in the Proxy Statement, dated April 16, 2024, for Territorial Bancorp’s 2024 annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the participants in the solicitation of proxies in respect of the proposed transaction and interests of participants of Territorial Bancorp in the solicitation of proxies in respect of the merger is included in the Registration Statement and Proxy Statement/Prospectus filed with the SEC.
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:
- factors related to the proposed transaction with Hope Bancorp, including the receipt of regulatory and stockholder approvals, and other customary closing conditions;
- 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;
- the effect of any pandemic disease, natural disaster, war, act of terrorism, accident or similar action or event;
- 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 Operations (Unaudited) | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Interest income: | |||||||||||||||
Loans | $ | 12,246 | $ | 11,697 | $ | 24,311 | $ | 23,151 | |||||||
Investment securities | 4,257 | 4,525 | 8,570 | 9,065 | |||||||||||
Other investments | 1,590 | 1,070 | 3,203 | 1,797 | |||||||||||
Total interest income | 18,093 | 17,292 | 36,084 | 34,013 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 7,410 | 4,323 | 14,189 | 7,853 | |||||||||||
Advances from the Federal Home Loan Bank | 1,806 | 1,832 | 3,616 | 2,886 | |||||||||||
Advances from the Federal Reserve Bank | 594 | — | 1,189 | — | |||||||||||
Securities sold under agreements to repurchase | 45 | 45 | 91 | 91 | |||||||||||
Total interest expense | 9,855 | 6,200 | 19,085 | 10,830 | |||||||||||
Net interest income | 8,238 | 11,092 | 16,999 | 23,183 | |||||||||||
(Reversal of provision) provision for credit losses | (26 | ) | 212 | (7 | ) | 112 | |||||||||
Net interest income after provision (reversal of provision) for credit losses | 8,264 | 10,880 | 17,006 | 23,071 | |||||||||||
Noninterest income: | |||||||||||||||
Service and other fees | 339 | 414 | 612 | 724 | |||||||||||
Income on bank-owned life insurance | 249 | 207 | 495 | 410 | |||||||||||
Net gain on sale of loans | — | 9 | — | 10 | |||||||||||
Other | 72 | 60 | 146 | 135 | |||||||||||
Total noninterest income | 660 | 690 | 1,253 | 1,279 | |||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 4,745 | 5,143 | 9,707 | 10,547 | |||||||||||
Occupancy | 1,768 | 1,759 | 3,506 | 3,382 | |||||||||||
Equipment | 1,329 | 1,303 | 2,652 | 2,615 | |||||||||||
Federal deposit insurance premiums | 393 | 246 | 889 | 491 | |||||||||||
Other general and administrative expenses | 1,749 | 1,059 | 3,290 | 2,088 | |||||||||||
Total noninterest expense | 9,984 | 9,510 | 20,044 | 19,123 | |||||||||||
(Loss) Income before income taxes | (1,060 | ) | 2,060 | (1,785 | ) | 5,227 | |||||||||
Income tax (benefit) expense | (285 | ) | 563 | (528 | ) | 1,414 | |||||||||
Net (loss) income | $ | (775 | ) | $ | 1,497 | $ | (1,257 | ) | $ | 3,813 | |||||
Basic (loss) earnings per share | $ | (0.09 | ) | $ | 0.17 | $ | (0.15 | ) | $ | 0.44 | |||||
Diluted (loss) earnings per share | $ | (0.09 | ) | $ | 0.17 | $ | (0.15 | ) | $ | 0.43 | |||||
Cash dividends declared per common share | $ | 0.01 | $ | 0.23 | $ | 0.06 | $ | 0.46 | |||||||
Basic weighted-average shares outstanding | 8,605,801 | 8,620,643 | 8,596,969 | 8,697,213 | |||||||||||
Diluted weighted-average shares outstanding | 8,664,806 | 8,658,927 | 8,657,731 | 8,740,699 | |||||||||||
Territorial Bancorp Inc. and Subsidiaries | ||||||||
Consolidated Balance Sheets (Unaudited) | ||||||||
(Dollars in thousands, except per share data) | ||||||||
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 82,782 | $ | 126,659 | ||||
Investment securities available for sale, at fair value | 19,095 | 20,171 | ||||||
Investment securities held to maturity, at amortized cost (fair value of | 666,103 | 685,728 | ||||||
Loans held for sale | 312 | — | ||||||
Loans receivable | 1,301,057 | 1,308,552 | ||||||
Allowance for credit losses | (5,118 | ) | (5,121 | ) | ||||
Loans receivable, net of allowance for credit losses | 1,295,939 | 1,303,431 | ||||||
Federal Home Loan Bank stock, at cost | 12,007 | 12,192 | ||||||
Federal Reserve Bank stock, at cost | 3,185 | 3,180 | ||||||
Accrued interest receivable | 6,039 | 6,105 | ||||||
Premises and equipment, net | 7,133 | 7,185 | ||||||
Right-of-use asset, net | 12,063 | 12,371 | ||||||
Bank-owned life insurance | 49,133 | 48,638 | ||||||
Income taxes receivable | 1,063 | 344 | ||||||
Deferred income tax assets, net | 2,799 | 2,457 | ||||||
Prepaid expenses and other assets | 7,760 | 8,211 | ||||||
Total assets | $ | 2,165,413 | $ | 2,236,672 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | $ | 1,572,751 | $ | 1,636,604 | ||||
Advances from the Federal Home Loan Bank | 237,000 | 242,000 | ||||||
Advances from the Federal Reserve Bank | 50,000 | 50,000 | ||||||
Securities sold under agreements to repurchase | 10,000 | 10,000 | ||||||
Accounts payable and accrued expenses | 22,699 | 23,334 | ||||||
Lease liability | 17,613 | 17,297 | ||||||
Advance payments by borrowers for taxes and insurance | 6,183 | 6,351 | ||||||
Total liabilities | 1,916,246 | 1,985,586 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | ||||||||
8,832,210 shares at June 30, 2024 and 8,826,613 shares at December 31, 2023 | 88 | 88 | ||||||
Additional paid-in capital | 48,105 | 48,022 | ||||||
Unearned ESOP shares | (2,203 | ) | (2,447 | ) | ||||
Retained earnings | 209,909 | 211,644 | ||||||
Accumulated other comprehensive loss | (6,732 | ) | (6,221 | ) | ||||
Total stockholders’ equity | 249,167 | 251,086 | ||||||
Total liabilities and stockholders’ equity | $ | 2,165,413 | $ | 2,236,672 | ||||
Territorial Bancorp Inc. and Subsidiaries | ||||||||||||||
Selected Financial Data (Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
June 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
Performance Ratios (annualized): | ||||||||||||||
Return on average assets | ( | |||||||||||||
Return on average equity | ( | |||||||||||||
Net interest margin on average interest earning assets | ||||||||||||||
Efficiency ratio (1) | ||||||||||||||
At | At | |||||||||||||
March | December | |||||||||||||
31, 2024 | 31, 2023 | |||||||||||||
Selected Balance Sheet Data: | ||||||||||||||
Book value per share (2) | ||||||||||||||
Stockholders' equity to total assets | ||||||||||||||
Asset Quality | ||||||||||||||
(Dollars in thousands): | ||||||||||||||
Delinquent loans 90 days past due and not accruing | ||||||||||||||
Non-performing assets (3) | ||||||||||||||
Allowance for credit losses | ||||||||||||||
Non-performing assets to total assets | ||||||||||||||
Allowance for credit losses to total loans | ||||||||||||||
Allowance for credit losses to non-performing assets | ||||||||||||||
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 |
![](https://ml.globenewswire.com/media/MWFhZTAxYWYtMTQzMi00ZmJiLTg0MDYtMjNmMzljZjI3YmVjLTEwMzA1Nzc=/tiny/Territorial-Bancorp-Inc-.png)
FAQ
What was Territorial Bancorp's (TBNK) net income for Q2 2024?
What dividend did Territorial Bancorp (TBNK) announce for Q2 2024?
What are the details of Territorial Bancorp's (TBNK) merger agreement with Hope Bancorp?
How did Territorial Bancorp's (TBNK) interest income change in Q2 2024?