Territorial Bancorp (TBNK) Q3 2024 earnings summary

Executive summary

• Reported a net loss of $1.3 million for Q3 2024, down from net income of $880,000 in Q3 2023, mainly due to lower net interest income and higher expenses.

• Net loss for the nine months ended September 30, 2024 was $2.6 million, compared to net income of $4.7 million for the same period in 2023.

• Announced a definitive merger agreement with Hope Bancorp, Inc. in a 100% stock-for-stock transaction valued at $78.6 million, with shareholders approving the deal in November 2024.

• Board approved a $0.01 per share dividend, payable November 22, 2024, to shareholders of record as of November 8, 2024.

Financial highlights

• Net interest income for Q3 2024 was $7.5 million, a 25.4% decrease from $10.0 million in Q3 2023.

• Total assets were $2.2 billion at September 30, 2024, down 1.7% from December 31, 2023.

• Deposits increased by $33.7 million to $1.67 billion at September 30, 2024, driven by growth in certificates of deposit.

• Total borrowings decreased by $65.0 million to $237.0 million since December 31, 2023.

• Allowance for credit losses to total loans was 0.39% at September 30, 2024.

Outlook and guidance

• The merger with Hope Bancorp is pending regulatory and shareholder approvals and customary closing conditions; branches to retain Territorial Savings Bank brand.

• Management expects continued focus on conservative loan underwriting and maintaining strong capital ratios.

• Forward-looking statements highlight risks from economic conditions, interest rates, regulatory changes, and integration of the merger.