Territorial boosts earnings 18%, raises dividend

Territorial Bancorp.’s earnings jumped 18 percent in the fourth quarter as loans grew by a double-digit percentage for the fifth year in a row.

The parent of Territorial Savings Bank also became the third local bank this week to increase its dividend. The state’s fifth-largest bank said it is boosting its quarterly payout to 20 cents, up from 18 cents. It will be payable Feb. 23 to stockholders of record as of Feb. 9. Bank of Hawaii and First Hawaiian Bank also raised their dividends.

Territorial said after the market closed today that net income rose to $4.4 million, or 46 cents a share, to match analysts’ estimates. A year ago, Territorial earned $3.7 million, or 40 cents a share.

“Hawaii’s strong economy has allowed us to increase the size of our loan portfolio by originating new mortgage loans, although rising interest rates may have an impact on loan volume,” Territorial Chairman and CEO Allan Kitagawa said in a statement. “The growth in our loan portfolio has increased our net income and improved our performance ratios.”

Territorial, which generates more than 95 percent of its loans from residential mortgages, said loans receivable jumped 12.4 percent to $1.34 billion from $1.19 billion in the year- earlier period. Deposits increased 3.3 percent to $1.49 billion from $1.45 billion.

For the year, Territorial’s earnings increased 10.8 percent to $16.3 million, or $1.76 a share, from $14.7 million, or $1.59 a share, in 2015.

Territorial’s stock closed down 13 cents today at $33.03.