Bank cites deposits for surge in profits

By David Butts
Advertiser Staff Writer

Honolulu-based Territorial Savings Bank yesterday said fourth-quarter profits rose nearly 24 percent due primarily to an increase in savings deposits.

Stan Tanaka, the bank's vice president of research and development, credited higher rates on savings deposits for attracting customers. Territorial Savings pays 1.61 percent on regular savings accounts, compared with 0.40 percent at First Hawaiian Bank and 0.35 percent at Bank of Hawaii.

Territorial Savings' net income in the three months ended Dec. 31 was $3.73 million, compared with $3.01 million in the same period a year ago. For the full year, the bank earned $14.52 million, up 65 percent from $8.78 million in 2002.

Total assets grew to $1.01 billion as of Dec. 31, compared with $741.6 million a year earlier.

The bank started running television advertising this month in hopes of building on its recent growth. "We are trying to be a little more aggressive in our advertising," Tanaka said.

Territorial Savings has 18 branches and plans to open a 19th branch at Pearl City Shopping Center "probably by April," Tanaka said.

The bank is a subsidiary of Territorial Mutual Holdings Inc. It converted from a state-chartered savings and loan association in 2002 to a federally chartered savings bank.