updated 11/4/2010 4:45:48 PM ET 2010-11-04T20:45:48

HONOLULU, Nov. 4, 2010 (GLOBE NEWSWIRE) -- Territorial Bancorp Inc. (Nasdaq:TBNK) (the "Company"), the holding company parent of Territorial Savings Bank, reported net income rose by 329.9% to $3.1 million, or $0.28 per share for the three months ended September 30, 2010 from $729,000 for the three months ended September 30, 2009.

The Company also announced that its Board of Directors today approved a quarterly cash dividend on its common stock of $0.07 per share. The dividend is expected to be paid on December 2, 2010 to stockholders of record as of November 18, 2010.

Allan Kitagawa, Chairman and Chief Executive Officer, said "We are pleased with our results for the third quarter of 2010. We continue our focus on growing our deposit base and loan portfolio." 

For the three months ended September 30, 2010 and September 30, 2009, net interest income was $11.7 million and $10.4 million, respectively. Net interest income rose by $1.3 million, or 12.8%, primarily as a result of a $1.2 million, or 25.2% decrease in interest expense. The decrease in interest expense occurred as the Company reduced the interest rates paid on deposits. The provision for loan losses for the quarter ended September 30, 2010 was $118,000 compared to $10,000 for the quarter ended September 30, 2009.  For the quarter ended September 30, 2010, the Company earned $1.0 million in non-interest income compared to a loss of $1.4 million of non-interest income for the quarter ended September 30, 2009.  This growth in non-interest income occurred as a result of there being no other-than-temporary impairment loss on securities for the quarter ended September 30, 2010 compared to an impairment loss on securities of $2.7 million for the quarter ended September 30, 2009. This was partially offset by a $105,000 reduction in service fees on loan and deposit accounts and a $100,000 reduction in gain on sale of loans for the quarter ended September 30, 2010 compared to the same quarter last year.  Non-interest expense totaled $7.7 million for the three months ended September 30, 2010 and $7.9 million for the three months ended September 30, 2009. Salaries and employee benefits expense and other general and administrative expenses rose by $189,000 and $140,000, respectively, during the three months ended September 30, 2010 compared to the same period last year. A significant portion of this increase is related to our conversion to a publicly-held company. The increase in these expenses was offset by the absence in the quarter ended September 30, 2010 of a $507,000 loss on extinguishment of debt related to the payoff of subordinated debentures that occurred in the quarter ended September 30, 2009.

Total assets at September 30, 2010 increased by $51.7 million, or 3.7% to $1.441 billion compared to $1.389 billion at December 31, 2009.  Cash and cash equivalents increased to $174.8 million at September 30, 2010 from $136.0 million at December 31, 2009, primarily due to an increase in deposits. Loans receivable, net of allowances for loan losses, increased to $637.8 million at September 30, 2010 compared to $597.7 million at December 31, 2009.  Deposits increased to $1.079 billion at September 30, 2010 from $1.015 billion at December 31, 2009. Securities sold under agreements to repurchase decreased to $105.2 million at September 30, 2010 from $130.2 million at December 31, 2009 as the Company paid off $25.0 million of borrowings which matured in the first quarter of 2010. Total stockholders' equity increased to $225.8 million at September 30, 2010 from $219.7 million at December 31, 2009. 

 Asset quality remained strong. Total delinquent loans ninety days or more past due and not accruing interest was $291,000 at September 30, 2010, compared to $272,000 at December 31, 2009.  Non-performing assets at September 30, 2010 totaled $509,000, or 0.04% of total assets, compared to $679,000, or 0.05% of total assets, at December 31, 2009.  The allowance for loan losses was $1.6 million at September 30, 2010 and $1.7 million December 31, 2009. The ratio of the allowance for loan losses to total loans was 0.25% at September 30, 2010 and 0.28% at December 31, 2009.

Territorial Bancorp Inc., headquartered in Honolulu, Hawaii, is the stock holding company for Territorial Savings Bank. Territorial Savings Bank is a federally 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 25 branch offices in the State of Hawaii. 

The Territorial Bancorp Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7034

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:

  • general economic conditions, either 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;
  • our ability to enter new markets successfully and capitalize on growth opportunities;
  • our ability to successfully integrate acquired entities, if any;
  • changes in consumer 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;
  • changes in our financial condition or results of operations that reduce capital available to pay dividends; and
  • changes in the financial condition or future prospects of issuers of securities that we own.

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.

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