Territorial Bancorp Inc. (NASDAQ: TBNK) (the Company),
headquartered in Honolulu, Hawaii, the holding company parent of
Territorial Savings Bank, announced a net loss of $775,000, or
$(0.09) per diluted share, for the three months ended June 30,
2024.
The Board of Directors approved a dividend of $0.01 per share.
The dividend is expected to be paid on August 23, 2024, to
stockholders of record as of August 9, 2024.
Hope Bancorp, Inc. Merger Agreement
As previously announced in a joint news release issued April 29,
2024, Hope Bancorp, Inc. (NASDAQ: HOPE) (Hope Bancorp) and the
Company signed a definitive merger agreement. Under the terms
of the merger agreement, Company stockholders will receive a fixed
exchange ratio of 0.8048 share of Hope Bancorp common stock in
exchange for each share of Company common stock they own, in a 100%
stock-for-stock transaction valued at approximately $78.6 million,
based on the closing price of Hope Bancorp’s common stock on April
26, 2024. The transaction is intended to qualify as a tax-free
reorganization for Territorial stockholders.
Upon completion of the transaction, Hope Bancorp intends to
maintain the Territorial franchise in Hawaii and preserve the
100-plus year legacy of the Territorial Savings Bank brand name,
culture and commitment to the local communities. The branches will
continue to do business under the Territorial Savings Bank brand,
as a trade name of Bank of Hope.
The transaction is subject to regulatory approvals, the approval
of Territorial stockholders, and the satisfaction of other
customary closing conditions.
Interest Income
Net interest income decreased by $2.85 million for the three
months ended June 30, 2024, compared to the three months ended June
30, 2023. Total interest income was $18.09 million for the three
months ended June 30, 2024, compared to $17.29 million for the
three months ended June 30, 2023. The $801,000 increase in total
interest income was primarily due to a $549,000 increase in
interest earned on loans and a $520,000 increase in interest earned
on other investments. The increase in interest income
on other investments is primarily due to a $26.24 million increase
in the average cash balance with the Federal Reserve Bank (FRB) and
a 45 basis point increase in the average interest rate paid on cash
balances. The $549,000 increase in interest income on loans
resulted from a $4.11 million increase in the average loan balance
together with a 16 basis point increase in the average loan yield.
The increases in interest income on other investments and loans
during the quarter was partially offset by a $268,000 decrease in
interest on investment securities which occurred because of a
$40.85 million decrease in the average securities balance.
Interest Expense
As a result of prolonged increases in short-term interest rates,
total interest expense increased by $3.66 million for the three
months ended June 30, 2024, compared to the three months ended June
30, 2023. Interest expense on deposits increased by $3.09 million
for the three months ended June 30, 2024, primarily due to an
increase in interest expense on certificates of deposit (CD) and
savings accounts. Interest expense on CDs rose by $2.04 million for
the three months ended June 30, 2024, due to a 100 basis point
increase in the average cost of CDs and a $82.08 million increase
in the average CD balance. Interest expense on savings accounts
rose by $1.05 million for the three months ended June 30, 2024, due
to a 62 basis point increase in the average cost of savings
accounts which was offset by a $103.85 million decrease in the
average savings account balance. The increase in the average cost
of CDs and savings accounts occurred as interest rates were raised
in response to the increase in market interest rates over that
period. The increase in the average balance of CDs occurred as
customers transferred balances from lower rate savings accounts to
higher rate CDs. Interest expense on FRB borrowings
rose by $594,000 for the three months ended June 30, 2024, as the
Company obtained a $50.00 million advance from the FRB in the
fourth quarter of 2023. FRB advances were obtained in 2023 to
enhance the Company’s liquidity and to fund deposit
withdrawals.
Noninterest Expense
Noninterest expense increased by $474,000 for the three months
ended June 30, 2024, compared to the three months ended June 30,
2023, primarily due to a $690,000 increase in general and
administrative expenses. General and administrative expenses
included $509,000 of merger-related legal and other consulting
expenses. Federal Deposit Insurance Corporation (FDIC) premium
expense rose by $147,000 for the quarter because of an increase in
the FDIC insurance premium rates. The increase in other general and
administrative expenses and FDIC premiums was offset by a $398,000
decrease in salaries and employee benefits during the quarter. The
decrease in salaries and employee benefits occurred primarily
because of decreases in compensation expense, deferred salary
expense for originating new loans, supplemental executive
retirement plan benefits and accruals for the Employee Stock
Ownership Plan (ESOP). The decrease in compensation expense is
primarily due to a decrease in the number of employees, especially
managers and highly compensated employees, working at the bank. The
decrease in deferred salary expense for originating new loans
occurred as fewer loans were originated during the three months
ended June 30, 2024, compared to the three months ended June 30,
2023. The decrease in ESOP accruals is primarily due to a decline
in the Company’s share price which is used to calculate the
accrual.
Income
Taxes Income
tax benefit for the three months ended June 30, 2024 was $285,000
with an effective tax rate of (26.89)% compared to income tax
expense of $563,000 with an effective tax rate of 27.33% for the
three months ended June 30, 2023. The decrease in income tax
expense was primarily due to a $3.12 million decrease in income
before income taxes during the quarter.
Balance Sheet
Total assets were $2.17 billion at June 30, 2024 and $2.24
billion at December 31, 2023. Cash and cash equivalents decreased
by $43.88 million to $82.78 million at June 30, 2024 from $126.66
million at December 31, 2023. The decrease in cash and cash
equivalents was used to fund deposit withdrawals during the quarter
ended June 30, 2024. Investment securities, including available for
sale securities, decreased by $20.70 million to $685.20 million at
June 30, 2024 from $705.90 million at December 31, 2023. The
decrease in investment securities occurred because of principal
repayments on mortgage-backed securities.
Deposits decreased by $63.85 million from $1.64 billion at
December 31, 2023 to $1.57 billion at June 30, 2024. The decrease
in deposits occurred as customers sought higher interest rates on
their deposits than what the Company offers.
Asset Quality
Credit quality continues to be extremely important as the Bank
adheres to its strict underwriting standards. The Company had
$87,000 in delinquent mortgage loans 90 days or more past due at
June 30, 2024, compared to $227,000 at December 31, 2023.
Non-performing assets totaled $1.23 million at June 30, 2024,
compared to $2.26 million at December 31, 2023. The ratio of
non-performing assets to total assets was 0.06% at June 30, 2024,
compared to 0.10% at December 31, 2023. The allowance for credit
losses was $5.12 million at June 30, 2024 and December 31,2023,
representing 0.39% of total loans. The ratio of the allowance for
credit losses to non-performing loans rose to 414.75% at June 30,
2024, compared to 226.59% at December 31, 2023.
About Us
Territorial Bancorp Inc., headquartered in Honolulu, Hawaii, is
the stock holding company for Territorial Savings Bank. Territorial
Savings Bank is a state-chartered savings bank which was originally
chartered in 1921 by the Territory of Hawaii.
Territorial Savings Bank conducts business from its headquarters in
Honolulu, Hawaii and has 28 branch offices in the state of Hawaii.
For additional information, please visit the Company’s website at:
https://www.tsbhawaii.bank.
Additional Information and Where to Find it
In connection with the proposed merger, Hope
Bancorp, Inc. filed with the Securities and Exchange Commission
(“SEC”) a Registration Statement on Form S-4 on June 21, 2024,
which included a Proxy Statement of Territorial Bancorp Inc. that
also constitutes a prospectus of Hope Bancorp, Inc. Territorial
Bancorp stockholders are encouraged to read the Registration
Statement and the Proxy Statement/Prospectus regarding the merger
and any other relevant documents filed with the SEC, as well as any
amendments or supplements to those documents, because they will
contain important information about the proposed merger.
Territorial Bancorp stockholders are able to obtain a free copy of
the Proxy Statement/Prospectus, as well as other filings containing
information about Hope Bancorp and Territorial Bancorp at the SEC’s
Internet site (www.sec.gov).
Participants in Solicitation
Territorial Bancorp and its directors, executive officers,
management and employees may be deemed to be participants in the
solicitation of proxies in respect of the merger. Information
concerning Territorial Bancorp’s participants is set forth in the
Proxy Statement, dated April 16, 2024, for Territorial Bancorp’s
2024 annual meeting of stockholders as filed with the SEC on
Schedule 14A. Additional information regarding the participants in
the solicitation of proxies in respect of the proposed transaction
and interests of participants of Territorial Bancorp in the
solicitation of proxies in respect of the merger is included in the
Registration Statement and Proxy Statement/Prospectus filed with
the SEC.
Forward-looking statements - this earnings
release contains forward-looking statements, which can be
identified by the use of words such as “estimate,” “project,”
“believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,”
“will,” “may” and words of similar meaning. These forward-looking
statements include, but are not limited to:
- statements of our goals, intentions and expectations;
- statements regarding our business plans, prospects, growth and
operating strategies;
- statements regarding the asset quality of our loan and
investment portfolios; and
- estimates of our risks and future costs and benefits.
These forward-looking statements are based on our current
beliefs and expectations and are inherently subject to significant
business, economic and competitive uncertainties and contingencies,
many of which are beyond our control. In addition, these
forward-looking statements are subject to assumptions with respect
to future business strategies and decisions that are subject to
change. We are under no duty to and do not take any obligation to
update any forward-looking statements after the date of this
earnings release.
The following factors, among others, could cause actual results
to differ materially from the anticipated results or other
expectations expressed in the forward-looking statements:
- factors related to the proposed transaction with Hope Bancorp,
including the receipt of regulatory and stockholder approvals, and
other customary closing conditions;
- general economic conditions, either internationally, nationally
or in our market areas, that are worse than expected;
- competition among depository and other financial
institutions;
- inflation and changes in the interest rate environment that
reduce our margins or reduce the fair value of financial
instruments;
- adverse changes in the securities markets;
- changes in laws or government regulations or policies affecting
financial institutions, including changes in regulatory fees and
capital requirements;
- changes in monetary or fiscal policies of the U.S. Government,
including policies of the U.S. Treasury and the Federal Reserve
Board;
- our ability to enter new markets successfully and capitalize on
growth opportunities;
- our ability to successfully integrate acquired entities, if
any;
- changes in consumer demand, spending, borrowing and savings
habits;
- changes in accounting policies and practices, as may be adopted
by the bank regulatory agencies, the Financial Accounting Standards
Board, the Securities and Exchange Commission and the Public
Company Accounting Oversight Board;
- changes in our organization, compensation and benefit
plans;
- the timing and amount of revenues that we may recognize;
- the value and marketability of collateral underlying our loan
portfolios;
- our ability to retain key employees;
- cyberattacks, computer viruses and other technological risks
that may breach the security of our websites or other systems to
obtain unauthorized access to confidential information, destroy
data or disable our systems;
- technological change that may be more difficult or expensive
than expected;
- the ability of third-party providers to perform their
obligations to us;
- the ability of the U.S. Government to manage federal debt
limits;
- the quality and composition of our investment portfolio;
- the effect of any pandemic disease, natural disaster, war, act
of terrorism, accident or similar action or event;
- changes in market and other conditions that would affect our
ability to repurchase our common stock; and
- changes in our financial condition or results of operations
that reduce capital available to pay dividends.
Because of these and a wide variety of other uncertainties, our
actual future results may be materially different from the results
indicated by these forward-looking statements.
Contact: Walter Ida(808)
946-1400
|
|
|
|
|
Territorial Bancorp Inc. and
Subsidiaries |
|
Consolidated Statements of Operations
(Unaudited) |
|
(Dollars in thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
June
30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
12,246 |
|
|
$ |
11,697 |
|
$ |
24,311 |
|
|
$ |
23,151 |
|
Investment securities |
|
|
4,257 |
|
|
|
4,525 |
|
|
8,570 |
|
|
|
9,065 |
|
Other investments |
|
|
1,590 |
|
|
|
1,070 |
|
|
3,203 |
|
|
|
1,797 |
|
Total interest income |
|
|
18,093 |
|
|
|
17,292 |
|
|
36,084 |
|
|
|
34,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
7,410 |
|
|
|
4,323 |
|
|
14,189 |
|
|
|
7,853 |
|
Advances from the Federal Home Loan Bank |
|
|
1,806 |
|
|
|
1,832 |
|
|
3,616 |
|
|
|
2,886 |
|
Advances from the Federal Reserve Bank |
|
|
594 |
|
|
|
— |
|
|
1,189 |
|
|
|
— |
|
Securities sold under agreements to repurchase |
|
|
45 |
|
|
|
45 |
|
|
91 |
|
|
|
91 |
|
Total interest expense |
|
|
9,855 |
|
|
|
6,200 |
|
|
19,085 |
|
|
|
10,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
8,238 |
|
|
|
11,092 |
|
|
16,999 |
|
|
|
23,183 |
|
(Reversal of provision) provision for credit losses |
|
|
(26 |
) |
|
|
212 |
|
|
(7 |
) |
|
|
112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision (reversal of provision) for
credit losses |
|
|
8,264 |
|
|
|
10,880 |
|
|
17,006 |
|
|
|
23,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service and other fees |
|
|
339 |
|
|
|
414 |
|
|
612 |
|
|
|
724 |
|
Income on bank-owned life insurance |
|
|
249 |
|
|
|
207 |
|
|
495 |
|
|
|
410 |
|
Net gain on sale of loans |
|
|
— |
|
|
|
9 |
|
|
— |
|
|
|
10 |
|
Other |
|
|
72 |
|
|
|
60 |
|
|
146 |
|
|
|
135 |
|
Total noninterest income |
|
|
660 |
|
|
|
690 |
|
|
1,253 |
|
|
|
1,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
4,745 |
|
|
|
5,143 |
|
|
9,707 |
|
|
|
10,547 |
|
Occupancy |
|
|
1,768 |
|
|
|
1,759 |
|
|
3,506 |
|
|
|
3,382 |
|
Equipment |
|
|
1,329 |
|
|
|
1,303 |
|
|
2,652 |
|
|
|
2,615 |
|
Federal deposit insurance premiums |
|
|
393 |
|
|
|
246 |
|
|
889 |
|
|
|
491 |
|
Other general and administrative expenses |
|
|
1,749 |
|
|
|
1,059 |
|
|
3,290 |
|
|
|
2,088 |
|
Total noninterest expense |
|
|
9,984 |
|
|
|
9,510 |
|
|
20,044 |
|
|
|
19,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income before income taxes |
|
|
(1,060 |
) |
|
|
2,060 |
|
|
(1,785 |
) |
|
|
5,227 |
|
Income tax (benefit) expense |
|
|
(285 |
) |
|
|
563 |
|
|
(528 |
) |
|
|
1,414 |
|
Net (loss) income |
|
$ |
(775 |
) |
|
$ |
1,497 |
|
$ |
(1,257 |
) |
|
$ |
3,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings per share |
|
$ |
(0.09 |
) |
|
$ |
0.17 |
|
$ |
(0.15 |
) |
|
$ |
0.44 |
|
Diluted (loss) earnings per share |
|
$ |
(0.09 |
) |
|
$ |
0.17 |
|
$ |
(0.15 |
) |
|
$ |
0.43 |
|
Cash dividends declared per common share |
|
$ |
0.01 |
|
|
$ |
0.23 |
|
$ |
0.06 |
|
|
$ |
0.46 |
|
Basic weighted-average shares outstanding |
|
|
8,605,801 |
|
|
|
8,620,643 |
|
|
8,596,969 |
|
|
|
8,697,213 |
|
Diluted weighted-average shares outstanding |
|
|
8,664,806 |
|
|
|
8,658,927 |
|
|
8,657,731 |
|
|
|
8,740,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Territorial Bancorp Inc. and Subsidiaries |
Consolidated Balance Sheets (Unaudited) |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2024 |
|
|
2023 |
|
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
82,782 |
|
|
$ |
126,659 |
|
Investment securities available for sale, at fair value |
|
|
19,095 |
|
|
|
20,171 |
|
Investment securities held to maturity, at amortized cost (fair
value of $535,799 and $568,128 at June 30, 2024 and December 31,
2023, respectively) |
|
|
666,103 |
|
|
|
685,728 |
|
Loans held for sale |
|
|
312 |
|
|
|
— |
|
Loans receivable |
|
|
1,301,057 |
|
|
|
1,308,552 |
|
Allowance for credit losses |
|
|
(5,118 |
) |
|
|
(5,121 |
) |
Loans receivable, net of allowance for credit losses |
|
|
1,295,939 |
|
|
|
1,303,431 |
|
Federal Home Loan Bank stock, at cost |
|
|
12,007 |
|
|
|
12,192 |
|
Federal Reserve Bank stock, at cost |
|
|
3,185 |
|
|
|
3,180 |
|
Accrued interest receivable |
|
|
6,039 |
|
|
|
6,105 |
|
Premises and equipment, net |
|
|
7,133 |
|
|
|
7,185 |
|
Right-of-use asset, net |
|
|
12,063 |
|
|
|
12,371 |
|
Bank-owned life insurance |
|
|
49,133 |
|
|
|
48,638 |
|
Income taxes receivable |
|
|
1,063 |
|
|
|
344 |
|
Deferred income tax assets, net |
|
|
2,799 |
|
|
|
2,457 |
|
Prepaid expenses and other assets |
|
|
7,760 |
|
|
|
8,211 |
|
Total assets |
|
$ |
2,165,413 |
|
|
$ |
2,236,672 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Deposits |
|
$ |
1,572,751 |
|
|
$ |
1,636,604 |
|
Advances from the Federal Home Loan Bank |
|
|
237,000 |
|
|
|
242,000 |
|
Advances from the Federal Reserve Bank |
|
|
50,000 |
|
|
|
50,000 |
|
Securities sold under agreements to repurchase |
|
|
10,000 |
|
|
|
10,000 |
|
Accounts payable and accrued expenses |
|
|
22,699 |
|
|
|
23,334 |
|
Lease liability |
|
|
17,613 |
|
|
|
17,297 |
|
Advance payments by borrowers for taxes and insurance |
|
|
6,183 |
|
|
|
6,351 |
|
Total liabilities |
|
|
1,916,246 |
|
|
|
1,985,586 |
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
|
Preferred stock, $0.01 par value; authorized 50,000,000 shares, no
shares issued or outstanding |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value; authorized 100,000,000 shares;
issued and outstanding |
|
|
|
|
|
|
8,832,210 shares at June 30, 2024 and 8,826,613 shares at December
31, 2023 |
|
|
88 |
|
|
|
88 |
|
Additional paid-in capital |
|
|
48,105 |
|
|
|
48,022 |
|
Unearned ESOP shares |
|
|
(2,203 |
) |
|
|
(2,447 |
) |
Retained earnings |
|
|
209,909 |
|
|
|
211,644 |
|
Accumulated other comprehensive loss |
|
|
(6,732 |
) |
|
|
(6,221 |
) |
Total stockholders’ equity |
|
|
249,167 |
|
|
|
251,086 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,165,413 |
|
|
$ |
2,236,672 |
|
|
|
|
|
|
|
|
|
Territorial Bancorp Inc. and Subsidiaries |
|
Selected Financial Data (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios (annualized): |
|
|
|
|
|
|
|
|
Return on average assets |
|
|
|
|
(0.14%) |
|
|
|
0.27% |
|
|
|
Return on average equity |
|
|
|
|
(1.24%) |
|
|
|
2.37% |
|
|
|
Net interest margin on average interest earning assets |
|
1.56% |
|
|
|
2.09% |
|
|
|
Efficiency ratio (1) |
|
|
|
|
|
112.20% |
|
|
|
80.72% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At |
|
At |
|
|
|
|
|
|
|
|
March |
|
December |
|
|
|
|
|
|
|
|
|
31, 2024 |
|
|
|
31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
Book value per share (2) |
|
|
|
$28.21 |
|
|
$28.45 |
|
|
|
Stockholders' equity to total assets |
|
|
|
11.51% |
|
|
|
11.23% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
(Dollars in thousands): |
|
|
|
|
|
|
|
|
|
Delinquent loans 90 days past due and not accruing |
$87 |
|
|
$227 |
|
|
|
Non-performing assets (3) |
|
|
|
$1,234 |
|
|
$2,260 |
|
|
|
Allowance for credit losses |
|
|
|
$5,118 |
|
|
$5,121 |
|
|
|
Non-performing assets to total assets |
|
|
|
0.06% |
|
|
|
0.10% |
|
|
|
Allowance for credit losses to total loans |
|
|
|
0.39% |
|
|
|
0.39% |
|
|
|
Allowance for credit losses to non-performing assets |
|
414.75% |
|
|
|
226.59% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: |
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|
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|
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|
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|
|
|
|
|
|
|
(1) Efficiency ratio is equal to noninterest expense divided by the
sum of net interest income and noninterest income |
|
(2) Book value per share is equal to stockholders' equity divided
by number of shares issued and outstanding |
|
(3) Non-performing assets consist of non-accrual loans and real
estate owned. Amounts are net of charge-offs |
Territorial Bancorp (NASDAQ:TBNK)
과거 데이터 주식 차트
부터 7월(7) 2024 으로 8월(8) 2024
Territorial Bancorp (NASDAQ:TBNK)
과거 데이터 주식 차트
부터 8월(8) 2023 으로 8월(8) 2024