Territorial Savings Bank’s net income surged 35.4% in the first quarter amid solid loan growth and the sale of a security that exceeded a previous write-down nine years ago.
The holding company of the state’s fifth-largest bank, Territorial Bancorp Inc., said today its net income rose to $6.5 million, or 70 cents a share, to easily top analysts’ consensus estimate of 49 cents. A year earlier Territorial earned $4.8 million, or 51 cents a share.
Territorial, which generates more than 95 percent of its loans from residential lending, said its overall loans receivable increased 5.4% to $1.6 billion as residential mortgage loan originations exceeded loan repayments.
The bank’s noninterest income, which includes service charges and fees, more than quadrupled to $3.4 million primarily due to a $2.72 million gain on the sale of a trust preferred security investment. The security had been written down in 2010. The $2.72 million gain exceeded the write-down.