Territorial Savings profits surge 185 percent

By Frank Cho
Advertiser Staff Writer

Territorial Savings Bank yesterday said fourth-quarter profits rose nearly 185 percent, reflecting rising income from interest and falling loan delinquencies.

The Honolulu-based savings bank reported net income for the three months that ended Dec. 31 rose to $3 million, up from $1.1 million in the same year-ago period. For the year that just ended, earnings were up 147 percent to $8.8 million from $3.6 million in $2001.

"Profits of the company improved because of our growth, the increase in net interest margin and our low delinquency rate in our mortgage loan portfolio," said Stan Tanaka, the bank's vice president of research and development

As of Dec. 31, the company said it had only four delinquent loans totaling about $844,900.

Total assets rose 34 percent to $741.6 million during 2002, up from $553.6 million in 2001. The bank's total loan portfolio rose to $287.1 million, up 19.6 percent from $240.1 million. Total net interest margin as of the end of December was 3.85 percent compared to 3.44 percent at the end of 2001.

Tanaka said the bank will open a new branch in Kapahulu at Kilohana Square this month and has plans to open new branches in Kapolei and Mililani later this year. The bank has 17 branches statewide.

"We are looking for a location in the Kahala area and will be relocating our Lahaina Branch to a better location," Tanaka said.

The bank is a subsidiary of Territorial Mutual Holdings Inc. It converted from state-chartered savings and loan association in September to a federally-charter savings bank.

Reach Frank Cho at 525-8088, or at fcho@honoluluadvertiser.com.