Territorial Bancorp Inc., holding company for the state’s fifth-largest bank, posted a 43.5 percent increase in second-quarter earnings as its deposits and loans grew from the year-earlier period.
The parent of Territorial Savings Bank said it had net income of $3.2 million, or 29 cents a share, for the period that ended June 30 compared with $2.3 million a year ago before the company was publicly traded.
The bank had its initial public offering on July 13, 2009.
Territorial also boosted its quarterly dividend 40 percent to 7 cents a share from 5 cents a share. It will be payable Sept. 2 to shareholders of record as of Aug. 19.
"We are pleased with our performance during the second quarter of 2010 in light of difficult economic conditions in Hawaii and throughout the country," Allan Kitagawa, chairman and chief executive officer, said in a statement. "We have experienced growth in our deposit base and loan portfolio despite these adverse conditions."
Territorial’s deposits rose 6.8 percent to $1.08 billion from $1.05 billion a year ago, while its net loans increased 4.9 percent to $627 million from $597.7 million.
Assets increased 4.1 percent to $1.45 billion from $1.39 billion.
Net interest income, reflecting the difference between what the bank pays depositors and what it brings in from loans, rose 17.3 percent to $11.3 million from $9.6 million a year earlier, largely due to a $1.3 million, or 24.2 percent, decrease in interest expense. The decrease occurred as the company paid off $24.7 million of subordinated debt in 2009 and $25 million of securities sold under repurchase agreements in the first quarter of 2010.
Noninterest income, which includes fees and service charges, rose 32.3 percent to $1.5 million from $1.1 million a year ago, primarily due to a $467,000 impairment loss on trust preferred securities in the year-earlier quarter. There was no such loss last quarter.
Nonperforming assets as of June 30 were $692,000, or 0.05 percent of total assets, compared with $679,000, or 0.05 percent of total assets, as of Dec. 31.
Territorial set aside $158,000 for potential loan losses during the quarter, compared with none in the year-earlier period.
The bank’s stock, which debuted at $10 last year after the company converted from mutual to full stock ownership, rose 17 cents yesterday to $17.96.