Territorial Savings Bank boosted net income 12.1% in the third quarter and increased its quarterly dividend by a penny.
The state’s fifth-largest bank said today that earnings rose to $5.4 million, or 57 cents, a share, to easily beat analysts’ estimate of 48 cents. In the year-earlier period, Territorial earned $4.8 million, or 51 cents a share.
Territorial’s dividend of 23 cents a share will be payable Nov. 21 to stockholders of record as of Nov. 7.
The bank increased its loans 3% to $1.59 billion but saw its deposits slip 2.3% to $1.61 billion.
Territorial’s noninterest income, which includes service charges and fees, more than doubled to $2.1 million from $746,000 primarily due to a $1.2 million increase in the gain on loan sales. The bank’s net interest income, the difference between what it collects on loans and what it pays for deposits, slipped 1.4% to $14.6 million. Its net interest margin fell 10 basis points to 2.90% from the year-earlier quarter.