Territorial profit rose 21% in '09
By Rick Daysog
Advertiser Staff Writer
The parent of Territorial Savings Bank yesterday reported a 20.9 percent rise in its 2009 net income.
Territorial Bancorp Inc. said it earned $8.7 million last year, compared with $7.2 million in 2008.
On a per-share basis, the company earned 77 cents, which exceeded analysts forecasts of about 40 cents per share.
Shares of Territorial increased 31 cents to close at $18.03 on the Nasdaq market yesterday.
"They're certainly in a good situation," said Christopher Marinac, director of research of FIG Partners LLC in Atlanta.
"They didn't do a lot of lending in land and they didn't do a lot of lending in construction, which got banks into trouble."
For the fourth quarter, Territorial said it earned $3 million, or 27 cents per share, which was up from $673,000 in the year-earlier quarter. Per-share comparisons with fourth quarter 2008 are not available because the company began trading publicly only in July.
The company said the increase in its fourth quarter net was largely due to lower interest expenses. During third quarter 2009, Territorial said it paid off $24.7 million in subordinated debentures and other borrowings.
Total assets as of Dec. 31 were $1.4 billion, which is up from $1.2 billion a year ago. Deposits increased to $1 billion from $924 million a year ago.
Cash and cash equivalents soared to $136 million from $11.2 million in 2008 thanks to the company's initial public offering in July.
Founded in 1921, Territorial is a locally based savings bank with 25 branches statewide.