Territorial Bancorp Inc.’s earnings jumped 13 percent in the third quarter amid continued strong loan growth in the state’s burgeoning residential housing market.
The parent of Territorial Savings Bank said Thursday that net income rose to
$4.2 million, or 45 cents a share, to beat analysts’
estimates by a penny. A year earlier Territorial had earnings of $3.7 million, or
40 cents a share.
Territorial, which generates more than 95 percent of its loans from residential mortgages, said loans receivable jumped 12 percent to $1.30 billion from
$1.16 billion in the year-
earlier period. Deposits increased 4 percent to
$1.46 billion from $1.41 billion.
Allan Kitagawa, chairman and CEO of Territorial, said the state’s visitor industry is helping fuel the bank’s growth.
“The growth in the visitor industry has strengthened Hawaii’s economy and has allowed us to grow our loan portfolio and increase our net income and earnings per share,” Kitagawa said in a statement. “I am pleased that our residential loan portfolio continues to grow at a strong pace.”
Territorial also said it plans to open its 29th branch across the street from the Walmart parking garage at 735 Keeaumoku St. in the location formerly occupied by Morning Glory. However, the bank said Thursday that no opening date has been set because it is waiting for building permits.
Last quarter, the bank’s net interest income, the difference between the interest Territorial pays on deposits and the interest
it receives on loans, rose
3 percent to $14.7 million from $14.3 million in the year-earlier quarter. Its net interest margin, though, worsened to 3.30 percent from 3.39 percent.
Noninterest income, which includes service charges and fees, declined 16 percent to $1.0 million from $1.2 million in the year-earlier quarter.
The bank’s nonperforming assets, or delinquent loans not accruing interest, and foreclosed real estate improved as they declined 10 percent to $4.8 million from $5.4 million.
Territorial, which has paid dividends for 28 consecutive quarters since going public in 2009, said it was maintaining its dividend at 18 cents a share. It will be payable Nov. 25 to stockholders of record as of Nov. 10.
The bank’s stock closed Thursday down 12 cents at $28.38. The earnings were announced after the market closed.
