Territorial posts higher net, increases dividend

Territorial Savings Bank continued to benefit from the state’s strong economy in posting a 15.4 percent second-quarter profit and declaring an increase in its quarterly dividend.

The parent of the state’s fifth-largest bank, Territorial Bancorp Inc., said in a recent earnings announcement that its net income rose to $5 million, or 53 cents a share, from $4.3 million, or 45 cents a share, in the year-earlier period.

“Our strong performance continued in the second quarter as we emphasize increasing the size of our loan portfolio by originating residential mortgage loans with good credit quality,” Territorial Chairman and CEO Allan Kitagawa said in a statement. “Hawaii’s strong economy has allowed us to increase the size of our loan portfolio and total deposits.”

Territorial, which generates more than 95 percent of its loans from residential lending, said its overall loans receivable rose 9.4 percent to $1.54 billion. Deposits increased 7.5 percent to $1.65 billion. Assets grew 5.6 percent to $2.03 billion.

Territorial, which also gave shareholders a 10-cents-a-share special dividend last month, will make its next quarterly dividend payout Aug. 23 to stockholders of record as of Thursday.

The bank said it benefited last quarter from the Tax Cuts and Jobs Act, which went into effect Jan. 1 and reduced the federal corporate tax rate to 21 percent from 35 percent. Territorial said its income tax expense during the quarter was $1.35 million compared with $2.65 million in the year-­earlier period.

Territorial’s stock closed Friday down 16 cents at $30.30.