Territorial Bancorp Inc. Announces Third Quarter 2021 Results
Territorial Bancorp Inc. (NASDAQ: TBNK) reported a net income of $4.16 million for Q3 2021, a slight decline from $4.32 million in Q3 2020. Fully-diluted earnings per share remained stable at $0.46. The net interest margin improved to 2.72% from 2.54% in Q2 2021. Total interest income decreased to $15.28 million, primarily due to a drop in loan interest income. The company declared a quarterly cash dividend of $0.23, marking the 47th consecutive dividend. Total assets grew to $2.12 billion, while loans receivable declined by $104.73 million, reflecting greater loan repayments than new originations.
- Quarterly cash dividend of $0.23 announced.
- Net interest margin increased to 2.72%.
- Total assets grew to $2.12 billion.
- Net income decreased from $4.32 million to $4.16 million year-over-year.
- Total interest income fell by $1.86 million due to decreased loan interest income.
- Loans receivable decreased by $104.73 million.
- Net income for the three months ended September 30, 2021 was
$4.16 million compared to$4.32 million for the three months ended September 30, 2020. - Fully-diluted earnings per share for the three months ended September 30, 2021 was
$0.46 per share compared to$0.47 per share for the three months ended September 30, 2020. - The net interest margin for the three months ended September 30, 2021 was
2.72% compared to2.54% for the three months ended June 30, 2021. - Fully-diluted earnings per share for the nine months ended September 30, 2021 was
$1.44 per share compared to$1.42 per share for the nine months ended September 30, 2020. Earnings per share for the first nine months of 2021 has risen by$0.02 per share, or1.41% . - Board of Directors approved a quarterly cash dividend of
$0.23 per share, representing Territorial Bancorp Inc.’s 47th consecutive quarterly dividend.
HONOLULU, Oct. 28, 2021 (GLOBE NEWSWIRE) -- Territorial Bancorp Inc. (NASDAQ: TBNK) (the ‘'Company”), headquartered in Honolulu, Hawaii, the holding company parent of Territorial Savings Bank, announced net income of
The Company also announced that its Board of Directors approved a quarterly cash dividend of
Allan Kitagawa, Chairman and Chief Executive Officer, said, “We are pleased with our results for the third quarter. The residential real estate market in Hawaii continues to be strong and the level of new mortgage loan applications remains elevated. Our strong capital position, asset quality and liquidity has allowed us to perform well despite the uncertainties created by COVID-19.”
Interest Income
Net interest income decreased to
Interest Expense and Provision for Loan Losses
Total interest expense decreased to
Noninterest Income
Noninterest income was
Noninterest Expense
Noninterest expense was
Income Taxes
Income tax expense for the three months ended September 30, 2021 was
Balance Sheet
Total assets were
Capital Management
During the three months ended September 30, 2021, the Company repurchased 79,398 shares. Through September 30, 2021, the Company repurchased 3,886,348 shares in all of its share repurchase programs. The shares repurchased represent
Asset Quality
The Company had
As of September 30, 2021, 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 29 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, 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, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Interest income: | ||||||||||||||||
| Loans | $ | 11,836 | $ | 14,628 | $ | 37,019 | $ | 45,310 | ||||||||
| Investment securities | 3,251 | 2,264 | 7,470 | 7,654 | ||||||||||||
| Other investments | 188 | 239 | 647 | 753 | ||||||||||||
| Total interest income | 15,275 | 17,131 | 45,136 | 53,717 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 844 | 1,897 | 3,251 | 7,385 | ||||||||||||
| Advances from the Federal Home Loan Bank | 522 | 724 | 1,595 | 2,448 | ||||||||||||
| Securities sold under agreements to repurchase | 46 | 46 | 137 | 137 | ||||||||||||
| Total interest expense | 1,412 | 2,667 | 4,983 | 9,970 | ||||||||||||
| Net interest income | 13,863 | 14,464 | 40,153 | 43,747 | ||||||||||||
| (Reversal of provision) provision for loan losses | (167 | ) | 692 | (1,452 | ) | 2,304 | ||||||||||
| Net interest income after (reversal of provision) provision for loan losses | 14,030 | 13,772 | 41,605 | 41,443 | ||||||||||||
| Non-interest income: | ||||||||||||||||
| Service fees on loan and deposit accounts | 433 | 728 | 1,958 | 1,716 | ||||||||||||
| Income on bank-owned life insurance | 192 | 204 | 570 | 607 | ||||||||||||
| Gain on sale of investment securities | 403 | 261 | 1,840 | 858 | ||||||||||||
| Gain on sale of loans | 138 | 321 | 584 | 987 | ||||||||||||
| Other | 57 | 63 | 237 | 171 | ||||||||||||
| Total noninterest income | 1,223 | 1,577 | 5,189 | 4,339 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and employee benefits | 5,493 | 5,346 | 16,576 | 16,294 | ||||||||||||
| Occupancy | 1,636 | 1,701 | 4,855 | 4,972 | ||||||||||||
| Equipment | 1,079 | 1,155 | 3,273 | 3,439 | ||||||||||||
| Federal deposit insurance premiums | 141 | 138 | 424 | 212 | ||||||||||||
| Other general and administrative expenses | 1,215 | 1,046 | 3,602 | 2,978 | ||||||||||||
| Total noninterest expense | 9,564 | 9,386 | 28,730 | 27,895 | ||||||||||||
| Income before income taxes | 5,689 | 5,963 | 18,064 | 17,887 | ||||||||||||
| Income taxes | 1,527 | 1,645 | 4,831 | 4,805 | ||||||||||||
| Net income | $ | 4,162 | $ | 4,318 | $ | 13,233 | $ | 13,082 | ||||||||
| Basic earnings per share | $ | 0.46 | $ | 0.47 | $ | 1.45 | $ | 1.43 | ||||||||
| Diluted earnings per share | $ | 0.46 | $ | 0.47 | $ | 1.44 | $ | 1.42 | ||||||||
| Cash dividends paid per common share | $ | 0.23 | $ | 0.23 | $ | 0.69 | $ | 0.69 | ||||||||
| Basic weighted-average shares outstanding | 9,012,398 | 9,104,079 | 9,086,447 | 9,144,463 | ||||||||||||
| Diluted weighted-average shares outstanding | 9,056,569 | 9,134,089 | 9,133,069 | 9,201,882 | ||||||||||||
| Territorial Bancorp Inc. and Subsidiaries | ||||||||
| Consolidated Balance Sheets (Unaudited) | ||||||||
| (Dollars in thousands, except per share data) | ||||||||
| September 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 101,386 | $ | 363,543 | ||||
| Investment securities available for sale, at fair value | — | 3,562 | ||||||
| Investment securities held to maturity, at amortized cost (fair value of | 621,417 | 247,642 | ||||||
| Loans held for sale | 488 | 2,195 | ||||||
| Loans receivable, net | 1,303,969 | 1,406,995 | ||||||
| Federal Home Loan Bank stock, at cost | 8,173 | 8,144 | ||||||
| Federal Reserve Bank stock, at cost | 3,158 | 3,145 | ||||||
| Accrued interest receivable | 6,070 | 6,515 | ||||||
| Premises and equipment, net | 4,262 | 4,855 | ||||||
| Right-of-use asset, net | 13,302 | 12,333 | ||||||
| Bank-owned life insurance | 46,214 | 45,644 | ||||||
| Deferred income tax assets, net | 3,304 | 3,382 | ||||||
| Prepaid expenses and other assets | 5,325 | 2,844 | ||||||
| Total assets | $ | 2,117,068 | $ | 2,110,799 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits | $ | 1,664,963 | $ | 1,659,800 | ||||
| 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 | 29,374 | 29,221 | ||||||
| Lease liability | 14,119 | 13,119 | ||||||
| Income taxes payable | 2,196 | 2,161 | ||||||
| Advance payments by borrowers for taxes and insurance | 3,727 | 6,790 | ||||||
| Total liabilities | 1,865,379 | 1,862,091 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 93 | 95 | ||||||
| Additional paid-in capital | 57,104 | 61,153 | ||||||
| Unearned ESOP shares | (3,548 | ) | (3,915 | ) | ||||
| Retained earnings | 207,007 | 200,066 | ||||||
| Accumulated other comprehensive loss | (8,967 | ) | (8,691 | ) | ||||
| Total stockholders’ equity | 251,689 | 248,708 | ||||||
| Total liabilities and stockholders’ equity | $ | 2,117,068 | $ | 2,110,799 | ||||
| Territorial Bancorp Inc. and Subsidiaries | |||||||||
| Selected Financial Data (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| September 30, | |||||||||
| 2021 | 2020 | ||||||||
| Performance Ratios (annualized): | |||||||||
| Return on average assets | |||||||||
| Return on average equity | |||||||||
| Net interest margin on average interest earning assets | |||||||||
| Efficiency ratio (1) | |||||||||
| At September 30, | At December 31, | ||||||||
| 2021 | 2020 | ||||||||
| 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 loan losses | |||||||||
| Non-performing assets to total assets | |||||||||
| Allowance for loan losses to total loans | |||||||||
| Allowance for loan 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 | |||||||||
FAQ
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