The parent company of Territorial Savings Bank reported a 6% drop in first-quarter net income, but company executives expressed optimism in Hawaii’s improving economy.

Territorial Bancorp Inc. said Thursday it had a net income of $4.7 million, or 52 cents earnings per share, in the quarter ending March 31, down from $5 million, or 55 cents a share, in the same period of 2021.

The bank’s net interest income, which is the difference between what it generates from loans and pays out in deposits, rose more than 4% to $13.8 million in the latest quarter from $13.21 million a year earlier.

“The first quarter of 2022 was challenging,” Allan Kitagawa, Territorial’s chairman and CEO, said in a statement. “We have been able to increase our net interest income despite these challenges. As Hawaii’s economy improves, our strong capital and asset quality will allow us to assist our customers with their banking needs.”

Deposits were $1.675 billion at the end of the latest quarter, down slightly from $1.68 billion a year earlier, while total assets were $2.13 billion, mostly unchanged from the end of 2021.

As of March 31, Territorial has repurchased more than 3.95 million shares of its stock, or 32% of the total shares issued in its initial public offering.

Kitagawa said the company “intends to continue to enhance shareholder value through dividends and share repurchases.”

The company’s first-quarter dividend remained 23 cents a share, payable May 26 to stockholders of record as of May 12.

The company stock price rose 12 cents to close at $23.23 Thursday.