Territorial Bancorp Inc.’s earnings more than quadrupled in the third quarter as deposits and loans increased, interest rate expenses decreased and it didn’t have the large nonrecurring charge that it had in the year-ago period.
The parent of Territorial Savings Bank, the fifth-largest bank in the state in terms of assets, said yesterday its net income rose 329.9 percent to $3.1 million, or 28 cents a share, from $729,000, or 6 cents a share, a year ago.
"We are pleased with our results for the third quarter," said Allan Kitagawa, chairman and chief executive officer of Territorial. "We continue our focus on growing our deposit base and loan portfolio."
Revenue, which encompasses both net interest and noninterest income, rose 42.4 percent to $12.8 million from $9 million. Net interest income, reflecting the difference between what the bank pays depositors and what it brings in from loans, rose 12.8 percent to $11.7 million from $10.4 million primarily due to a $1.2 million, or 25.2 percent, decrease in interest expenses as the company reduced the interest rates paid on deposits.
Noninterest income, which includes charges and fees, was $1 million compared with a loss of $1.4 million a year earlier when the bank had a $2.7 million impairment loss on its valuation of trust-preferred securities.
Total assets rose 6.3 percent to $1.44 billion from $1.36 billion a year ago. Net loans increased 5.8 percent to $637.8 million from $602.6 million. And deposits grew to $1.08 billion from $985,584.
Territorial set aside $118,000 for potential loan losses compared with $10,000 a year ago, but its asset quality remained strong. Nonperforming assets were $509,000, or 0.04 percent of total assets as of Sept. 30.
Separately, the bank’s board maintained its quarterly dividend at 7 cents a share. It will be payable Dec. 2 to stockholders of record as of Nov. 18.
Territorial stock, which debuted at $10 in July 2009 after the company converted from mutual to full stock ownership, rose 14 cents yesterday to $17.33 before the earnings were announced after the market closed.