Territorial quarterly profits up 111%

Advertiser Staff

•	Territorial Savings Bank 2nd Quarter: Profits up 111 percent to $3.8 million, up from $1.8 million one year ago. Total assets: Rose 48 percent to $913.2 million in 2nd quarter.

The Honolulu-based savings bank reported its net income for the three months ended June 30 rose to $3.8 million, up from $1.8 million in the same year-ago period. For the first half of the year, earnings were up 129 percent to $7.1 million from $3.1 million in the first half of 2002. Net earnings for all of 2002 were just $8.8 million.

"We've grown because of our rates," said Stan Tanaka, the bank's vice president of research and development. Tanaka said the bank's 1.65 percent interest paid on passbook savings is popular because most major banks are offering 0.50 percent or less.

"Because we are a mutual company, we are willing to sacrifice some earnings to provide a better return," Tanaka said. "We don't have stockholders. Most banks pay dividends to stockholders. We pay a better return."

Territorial's net interest margin was 3.57 percentage points in the second quarter, up from 3.42 a year ago. Net interest margin is the difference between the interest the bank earns when it lends money and the interest it pays when it borrows money.

Total assets rose 48 percent to $913.2 million in the second quarter, up from $613.4 million in the year-ago period.

Deposits rose to $773.9 million, from $552.4 million a year ago.

The bank's mortgage loans and mortgage-backed securities increased 43 percent to $814.6 million from $569.1 million a year ago.