Territorial Savings Bank’s earnings rose 14.2 percent in the first quarter as loan growth jumped double digits amid a strong Hawaii economy.
The state’s fifth-largest bank, which generates more than 95 percent of its loans from residential mortgages, said today that net income rose to $4.3 million, or 46 cents a share, to beat analysts’ estimates by a penny. In the year-earlier quarter, Territorial earned $3.8 million, or 41 cents a share.
Loans rose 12.6 percent to $1.37 billion from $1.21 billion.
“Our first quarter of 2017 has been strong and we are looking forward to continuing this momentum through the remainder of the year,” Chairman and CEO Allan Kitagawa of parent company Territorial Bancorp Inc. said in a statement. “Hawaii’s tourism industry saw a record number of visitors in 2016 and this growth has continued in 2017. The strength of Hawaii’s economy has given us an opportunity to successfully expand our loan portfolio, which in turn has increased our net income and earnings per share.”
The bank said it opened its 29th branch earlier this month across the street from the Wal-Mart parking garage at 735 Keeaumoku St. in the location formerly occupied by Morning Glory, a gift shop.
Territorial’s stock slipped 23 cents to $32.41 in trading today. The financial results were released after the market closed.