Territorial Bancorp (TBNK) Q4 2024 earnings summary

Executive summary

• Reported net loss of $1.72 million, or $0.20 per diluted share, for Q4 2024, reflecting $1.53 million in pre-tax merger-related expenses.

• Board approved a $0.01 per share dividend, payable February 28, 2025.

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

Financial highlights

• Net interest income decreased by $2.21 million year-over-year to $7.21 million for Q4 2024.

• Total interest income rose slightly to $17.91 million, while total interest expense increased by $2.42 million to $10.70 million.

• Noninterest income increased by $139,000, mainly due to lower pension expenses.

• Noninterest expense rose by $1.42 million, driven by $1.53 million in merger-related legal and consulting costs.

• Income tax benefit of $1.28 million in Q4 2024, compared to $61,000 expense in Q4 2023.

Outlook and guidance

• Merger with Hope Bancorp expected to maintain Territorial franchise and brand in Hawaii, subject to regulatory approvals and customary closing conditions.