Territorial Bancorp Inc.'s earnings fell 3.1 percent in the second quarter but assets and cash holdings soared thanks to the company's recent initial public offering.

In a filing with the Securities and Exchange Commission yesterday, the company said it earned about $2.26 million during the three months ending June 30, which was down from the year-earlier's $2.39 million.

But assets rose 23.2 percent to $1.5 billion while cash and cash equivalents swelled to $322 million from second-quarter 2008's $11.2 million.

Shares of Territorial slipped 9 cents to close at $14.78 on the Nasdaq market.

Territorial shares began trading publicly last month, in one of the more successful local IPOs in recent years. Company shares soared over 50 percent from $10 to $14.99 on its first day of trading on July 13.

The company has said it plans to used the proceeds of the IPO to expand its branch network, buy back company stock or acquire another bank or financial services company.

Territorial said deposits grew 32.2 percent to $1.5 billion from the year-earlier period while loans slipped 4.5 percent to $604.8 million.

For the first six months this year, the company said it earned $4.93 million, which was up nearly 19 percent from the first half of 2008.