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Reduced interest earned from home loans contributed to a small decrease in profit for Territorial Savings Bank in the third quarter.
The Honolulu-based bank, largely focused on residential mortgage lending, reported earning $4.16 million in the July-September period, down 3.7% from $4.32 million in the same period of 2020.
Territorial Bancorp Inc., the bank’s publicly traded parent holding company, released the financial results Thursday and called them pleasing.
“The residential real estate market in Hawaii continues to be strong and the level of new mortgage loan applications remains elevated,” Chairman and CEO Allan Kitagawa said in a statement. “Our strong capital position, asset quality and liquidity has allowed us to perform well despite the uncertainties created by COVID-19.”
Territorial said areas of business that generated less income included interest from loans, service fees on accounts, loan referral fees and gains from selling mortgages. These things were partially offset by increased income from interest on investment securities and from selling more investment securities, the bank said in its financial report.
Assets held by the company totaled $2.12 billion at the end of the third quarter, and included $1.3 billion in loans. That compared with $2.11 billion a year earlier, in which the total included $1.5 billion in loans.
Territorial said $20 million, or 1.5% of its loans at the end of the third quarter, were in a program allowing customers to defer principal and interest payments due to financial hardships related to the coronavirus pandemic. This was down from $142 million, or 9.6% of loans, a year earlier.
Total deposits held by the bank, which are liabilities, stood unchanged at $1.66 billion in the third quarter and a year earlier.
During the recent quarter, Territorial repurchased 79,398 shares of its stock.
The company’s board declared a third-quarter dividend of 23 cents, unchanged from a year earlier.
Shares of Territorial closed at $25.20 Thursday before the release of the company’s financial report.
THIRD-QUARTER NET
$4.16 million
YEAR-AGO NET
$4.32 million
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