comscore Tax benefit helps boost Territorial’s earnings
Top News

Tax benefit helps boost Territorial’s earnings

Honolulu Star-Advertiser logo
Unlimited access to premium stories for as low as $12.95 /mo.
Get It Now

Territorial Bancorp Inc.’s net income increased 8.7% in the fourth quarter as it benefited from a gain on loan sales and a one-time tax benefit.

The state’s fifth-largest bank reported today it had earnings of $5 million, or 54 cents a share, compared with $4.6 million, or 50 cents a share, in the year-earlier period.

The holding company of Territorial Savings Bank said its noninterest income jumped 21.2% to $1 million primarily due to a $318,000 increase in the gain of loan sales from the year-earlier quarter.

Territorial also reported that its income tax expense last quarter was $1.15 million at an 18.54% rate compared with $1.74 million at a 27.23% rate in the year-ago quarter. Last quarter’s income tax expense included a $402,000 tax benefit that occurred when the company filed an amended 2017 corporate tax return which included an increase in depreciation expense.

For the year, the bank’s earnings rose 14.5% to $22 million.

“We are pleased by the company’s performance in 2019,” Territorial Chairman and CEO Allan Kitagawa said. “We were able to increase our earnings by $2.78 million. Our strong performance allowed us to increase our cash dividends paid in 2019 by $0.35 or 30.70% per common share as compared to 2018.”

Loans and deposits in the fourth quarter were slightly ahead of a year ago. Loans edged up 0.6% to $1.58 billion while deposits ticked up 0.2% to $1.63 billion.

The bank’s net interest income, the difference between what it collects on loans and what it pays for deposits, fell 2.5% to $14.5 million while its net interest margin fell 13 basis points to 2.88%

Comments (1)

By participating in online discussions you acknowledge that you have agreed to the Terms of Service. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our guidelines.

Having trouble with comments? Learn more here.

Click here to see our full coverage of the coronavirus outbreak. Submit your coronavirus news tip.

Be the first to know
Get web push notifications from Star-Advertiser when the next breaking story happens — it's FREE! You just need a supported web browser.
Subscribe for this feature

Scroll Up