Financial Performance - The net loss for 2024 was $4,299 thousand, compared to a net income of $5,027 thousand in 2023[156]. - Net income decreased by $9.3 million, or 185.5%, resulting in a net loss of $4.3 million for the year ended December 31, 2024, compared to net income of $5.0 million for 2023[190]. - Noninterest income increased by $140,000, or 5.7%, to $2.6 million in 2024 from $2.5 million in 2023, driven by higher bank-owned life insurance income and other income[198]. - Noninterest expense rose by $2.7 million, or 7.0%, to $40.9 million in 2024, primarily due to merger-related legal fees and increased federal deposit insurance premiums[200]. - The income tax benefit for 2024 was $2.4 million with an effective tax rate of (36.0%), compared to an income tax expense of $1.8 million with an effective tax rate of 26.5% in 2023[201]. Asset and Equity Changes - Total assets decreased to $2,169,715 thousand in 2024 from $2,236,672 thousand in 2023, a decline of approximately 3%[156]. - Total stockholders' equity decreased to $248,351 thousand in 2024 from $251,086 thousand in 2023[156]. - Cash and cash equivalents were $123.5 million, down $3.1 million or 2.5% from $126.7 million at the end of 2023[160]. - Stockholders' equity decreased to $248.4 million, a decline of $2.7 million, or 1.1%, from $251.1 million at the end of 2023, primarily due to a net loss incurred during the year[183]. Loan and Deposit Activity - Total loans decreased by $22.0 million, with repayments and sales exceeding new loan originations[163]. - As of December 31, 2024, total deposits amounted to $1.7 billion, representing 89.4% of total liabilities, with a year-over-year increase of $81.1 million, or 5.0%[175][177]. - The increase in deposits was primarily driven by a $173.7 million rise in certificates of deposit, which included a $161.4 million increase in state and local government deposits[177]. - The company originated $74.9 million in loans during the year ended December 31, 2024, down from $100.8 million in 2023[235]. Interest Income and Expense - Interest income increased to $72,305 thousand in 2024, up from $69,088 thousand in 2023, representing a growth of approximately 3.2%[156]. - Interest expense rose significantly to $40,613 thousand in 2024 from $26,457 thousand in 2023, an increase of approximately 53.5%[156]. - Net interest income after provision for credit losses decreased to $31,619 thousand in 2024 from $42,634 thousand in 2023, a decline of approximately 25.9%[156]. - The average yield on total deposits increased to 2.01% in 2024 from 1.23% in 2023[179]. - The net interest rate spread decreased to 1.21% for the year ended December 31, 2024, down from 1.83% in 2023[192]. - The net interest margin also declined to 1.50% for the year ended December 31, 2024, compared to 2.02% for 2023[192]. Credit Quality and Losses - Nonperforming assets totaled $1.9 million, or 0.09% of total assets, at December 31, 2024, down from $2.3 million, or 0.10% of total assets, at December 31, 2023[138]. - Provision for credit losses recorded was $73,000 for 2024, compared to a reversal of $3,000 in 2023, resulting in an allowance for credit losses to total loans ratio of 0.40% in 2024 and 0.39% in 2023[195][196]. - Net charge-offs were $80,000 in 2024, down from $117,000 in 2023, reflecting improved credit quality[196]. - Nonaccrual loans totaled $1.933 million in 2024, a decrease from $2.260 million in 2023, indicating a reduction in troubled assets[207]. Regulatory and Capital Position - The company exceeded all regulatory capital requirements and was considered "well capitalized" under regulatory guidelines[240]. - Total capital to risk-weighted assets improved to 27.26%, up from 26.87% in 2023[1]. - The company maintained a minimum liquidity ratio of 10% to ensure sufficient liquidity for meeting customer needs[232]. Market and Economic Conditions - The increased cost of operations is attributed to inflation, although the primary assets and liabilities are monetary in nature[243]. - Changes in market interest rates have a more significant impact on performance compared to inflation effects[243].

Financial Performance - Territorial Bancorp Inc. reported a net loss of $1.72 million, or $0.20 per diluted share, for Q4 2024, reflecting $1.53 million in pre-tax merger-related expenses[1]. - The net loss for Q4 2024 was $1,724 million, compared to a net income of $334 million in Q4 2023[21]. - Return on average assets for Q4 2024 was -0.32%, a decline from 0.06% in Q4 2023[25]. - The efficiency ratio for Q4 2024 was 137.09%, significantly higher than 94.62% in Q4 2023[25]. Income and Expenses - Total interest income for Q4 2024 was $17.91 million, a slight increase from $17.69 million in Q4 2023, driven by a $274,000 increase in interest earned on loans despite a $20.63 million decrease in average loan balance[5]. - Noninterest income increased by $139,000 in Q4 2024, primarily due to a $129,000 decrease in pension expenses[9]. - Net interest income after provision for credit losses decreased to $7,158 million in Q4 2024, down 22.73% from $9,270 million in Q4 2023[21]. - Noninterest income increased to $742 million in Q4 2024, up 23.08% from $603 million in Q4 2023[21]. - Total noninterest expense rose to $10,900 million in Q4 2024, an increase of 15.03% compared to $9,478 million in Q4 2023[21]. - Noninterest expense rose by $1.42 million in Q4 2024, mainly due to a $1.34 million increase in general and administrative expenses, which included $1.53 million in merger-related legal and consulting expenses[10]. Assets and Liabilities - Total assets decreased to $2.17 billion at December 31, 2024, down from $2.24 billion a year earlier, with loans receivable decreasing by $21.89 million to $1.29 billion[12]. - Total assets decreased to $2,169,715 million as of December 31, 2024, down from $2,236,672 million as of December 31, 2023[23]. - Deposits increased by $81.06 million to $1.72 billion at December 31, 2024, primarily due to deposits from state and local governments[13]. - Deposits increased to $1,717,663 million as of December 31, 2024, up from $1,636,604 million as of December 31, 2023[23]. - The allowance for credit losses remained stable at $5,114 million as of December 31, 2024, compared to $5,121 million as of December 31, 2023[25]. Credit Quality - The Company had a provision for credit losses of $51,000 for Q4 2024, down from $144,000 in Q4 2023, attributed to a decrease in the mortgage loan portfolio[8]. - The ratio of non-performing assets to total assets was 0.09% at December 31, 2024, compared to 0.10% a year earlier, indicating stable asset quality[14]. Merger Information - The merger agreement with Hope Bancorp is valued at approximately $78.60 million, with a fixed exchange ratio of 0.8048 shares of Hope Bancorp common stock for each share of Territorial common stock[3]. - The Company’s tier one leverage and risk-based capital ratios were 11.68% and 28.96%, respectively, indicating it is "well-capitalized" as of December 31, 2024[6].

Merger and Acquisition - Hope Bancorp and the Company entered into a merger agreement valued at approximately $78.6 million, with a fixed exchange ratio of 0.8048 shares of Hope Bancorp common stock for each share of the Company's common stock[115]. Financial Performance - The company reported a net loss of $1.3 million for Q3 2024, a decrease of $2.2 million compared to a net income of $880,000 in Q3 2023[141]. - Net interest income decreased by $2.6 million, or 25.4%, to $7.5 million in Q3 2024 from $10.0 million in Q3 2023[142]. - The company experienced a decrease in income taxes by $946,000, partially offsetting the decline in net income[141]. - Noninterest income increased by $27,000, or 4.6%, to $616,000 for the three months ended September 30, 2024, compared to $589,000 for the same period in 2023[149]. - Noninterest income increased by $1,000 for the nine months ended September 30, 2024, with bank-owned life insurance income rising by 19.4% to $750,000[161]. Asset and Liability Management - Total assets decreased by $38.2 million, or 1.7%, to $2.2 billion as of September 30, 2024, primarily due to a $31.6 million decrease in total investment securities and a $20.8 million decrease in total loans[126]. - Total loans decreased by $20.8 million, or 1.6%, to $1.3 billion, representing 58.3% of total assets[128]. - Total investment securities decreased by $31.6 million, or 4.5%, to $674.3 million, accounting for 30.7% of total assets[129]. - Total borrowings decreased by $65.0 million, or 21.5%, to $237.0 million, consisting of advances from the Federal Home Loan Bank and Federal Reserve Bank[131]. - Cash and cash equivalents increased by $16.5 million, or 13.0%, to $143.1 million, driven by a $33.7 million increase in deposits[127]. - Deposits increased by $33.7 million, or 2.1%, to $1.7 billion, primarily due to a $114.7 million increase in certificates of deposit[130]. Credit Quality - Nonperforming assets totaled $2.3 million, or 0.11% of total assets, as of September 30, 2024, compared to 0.10% at December 31, 2023[122]. - The Company recorded a provision for credit losses of $22,000 for the nine months ended September 30, 2024, primarily due to an increase in loans in the consumer loan portfolio[122]. - Provision for credit losses recorded was $29,000 for the three months ended September 30, 2024, compared to a reversal of $259,000 for the same period in 2023[147]. - Provision for credit losses recorded was $22,000 for the nine months ended September 30, 2024, compared to a reversal of $147,000 in the same period of 2023[160]. Interest Income and Expense - Interest income increased by $929,000, or 5.3%, due to an 18 basis point increase in the yield on average interest-earning assets[142]. - Interest expense increased by $3.5 million, or 47.3%, primarily due to a 76 basis point increase in the cost of average interest-bearing liabilities[142]. - Interest expense increased by $3.5 million, or 47.3%, to $10.8 million for the three months ended September 30, 2024, from $7.4 million for the same period in 2023[144]. - Interest expense increased by $11.7 million, or 64.5%, to $29.9 million for the nine months ended September 30, 2024, from $18.2 million for the same period in 2023[157]. Capital Ratios - Territorial Savings Bank exceeded all regulatory capital requirements and is considered "well capitalized" as of September 30, 2024[176]. - As of September 30, 2024, Territorial Savings Bank's Tier 1 Leverage Capital ratio is 10.82%, significantly above the required 5.00%[177]. - Common Equity Tier 1 Risk-Based Capital ratio for Territorial Savings Bank is 26.67% as of September 30, 2024, exceeding the required 9.00%[177]. - Total Risk-Based Capital ratio for Territorial Bancorp Inc. is 29.07% as of September 30, 2024, well above the required 12.50%[177]. - The Bank's capital ratios exceeded the minimum capital thresholds for a "well-capitalized" institution as of both September 30, 2024, and December 31, 2023[179]. Interest Rate Impact - Interest rates on Freddie Mac mortgage-backed securities decreased by 57 basis points between June 30, 2024, and September 30, 2024, increasing the value of interest-earning assets[191]. - The estimated Economic Value of Equity (EVE) decreased by 201,647 thousand dollars with a 400 basis point increase in interest rates, reflecting a 136.52% decrease in EVE[188]. - The EVE ratio as a percent of the present value of assets is 8.13% at a 0 basis point change in interest rates[188]. Regulatory and Compliance - The company has not elected to follow the alternative framework for community bank leverage ratio, which is currently set at 9%[181]. - There have been no material changes in contractual obligations or funding needs between December 31, 2023, and September 30, 2024[183]. - The company does not permit hedging activities, limiting exposure to high-risk mortgage derivatives[186].

Core Viewpoint - Blue Hill Advisors is urging Territorial Bancorp's Board to engage with their competing offer, which they believe is superior to the proposed sale to Hope Bancorp, emphasizing that the Board's refusal to consider this offer may breach their fiduciary duty [1][2][6]. Group 1: Offer Details - Seven investors, including Blue Hill Advisors, have made a cash offer of $12.50 per share for up to 100% of Territorial shares, representing a 25% premium over the current value of the Hope consideration [3][4]. - The proposal allows up to 49% of existing shareholders to remain as shareholders, providing them with the option to participate in Territorial's potential upside [3]. - Blue Hill Advisors has attempted to engage with Territorial's Board on at least nine occasions since August, but all requests have been declined [3][4]. Group 2: Merger Agreement Insights - The merger agreement with Hope allows Territorial's Board to explore competing offers if they are "reasonably likely to lead to a Superior Proposal," which Blue Hill Advisors asserts their offer meets [3][4]. - The Board's claims of having unanswered questions about the proposal can be resolved by signing a Non-Disclosure Agreement (NDA) and engaging in due diligence [4][5]. - Allowing due diligence would not jeopardize the Hope deal, as Hope cannot withdraw unless Territorial changes its recommendation or breaches the merger agreement [5][6]. Group 3: Shareholder Actions - Shareholders are encouraged to vote against the Hope merger at the adjourned special meeting on November 6, 2024, to facilitate the exploration of the superior offer [1][8]. - The Board is accused of pressuring shareholders to approve the Hope deal without adequately considering a better option, which could be detrimental to their fiduciary responsibilities [6][7]. - The Hope deal is described as one of the worst seen, with concerns about its regulatory approval status, as Hope's previous acquisition attempt in 2017 failed to gain approval [7][8].

Financial Performance - The Company reported a net loss of $1,318,000, or $0.15 per diluted share, for the three months ended September 30, 2024[2]. - The net loss for the three months ended September 30, 2024, was $(1,318,000), compared to a net income of $880,000 for the same period in 2023[20]. - Basic loss earnings per share for the three months ended September 30, 2024, was $(0.15), compared to earnings of $0.10 in the prior year[20]. Assets and Liabilities - Total assets decreased to $2.20 billion at September 30, 2024, from $2.24 billion at December 31, 2023[9]. - Total assets decreased to $2,198,432,000 as of September 30, 2024, down from $2,236,672,000 at the end of 2023[21]. - Total liabilities decreased to $1,949,695,000 as of September 30, 2024, compared to $1,985,586,000 at the end of 2023[21]. Income and Expenses - Net interest income decreased by $2.55 million for the three months ended September 30, 2024, compared to the same period in 2023[5]. - Total interest income was $18.31 million for the three months ended September 30, 2024, an increase of $929,000 from the previous year[5]. - Total interest income for the three months ended September 30, 2024, was $18,313,000, an increase of 5.3% from $17,384,000 for the same period in 2023[20]. - Net interest income after provision for credit losses decreased to $7,455,000 for the three months ended September 30, 2024, down 27.5% from $10,293,000 in the prior year[20]. - Total noninterest income increased slightly to $616,000 for the three months ended September 30, 2024, compared to $589,000 in the same period of 2023[20]. - Total noninterest expense rose to $10,000,000 for the three months ended September 30, 2024, up 3.4% from $9,667,000 in the prior year[20]. Credit and Deposits - Non-performing assets totaled $2.34 million at September 30, 2024, with a ratio of non-performing assets to total assets at 0.11%[11]. - The allowance for credit losses was $5.06 million at September 30, 2024, representing 0.39% of total loans[11]. - Deposits increased by $33.68 million to $1.67 billion at September 30, 2024, primarily due to deposits from state and local governments[10]. - Deposits increased to $1,670,281,000 as of September 30, 2024, up from $1,636,604,000 at the end of 2023[21]. Dividends and Mergers - The Company approved a dividend of $0.01 per share, expected to be paid on November 22, 2024[2]. - The merger agreement with Hope Bancorp is valued at approximately $78.60 million, with a fixed exchange ratio of 0.8048 shares of Hope Bancorp common stock for each share of the Company[3].

Core Viewpoint - Investors are urging the Board of Territorial Bancorp Inc. to consider their proposal, which they believe offers a superior alternative to the current merger agreement with Hope, emphasizing the need for engagement and transparency from the Board [1][3][4]. Group 1: Investor Proposal Details - The investors backing the proposal have expressed interest in acquiring Territorial shares totaling $134 million, exceeding the required amount for both 100% and 51% of shares at $12.50 per share [2]. - The investors manage a total of $3.4 billion in capital and include seasoned bank investors, family offices, and private investors with extensive transaction experience [2]. - The proposal includes a reduced minimum tender requirement from 70% to 51%, indicating a strategic shift to facilitate the acquisition process [1][2]. Group 2: Board Engagement and Responsibilities - The investors are calling on the Board to fulfill its fiduciary duty by exploring their proposal, which they argue values Territorial at a 25% premium compared to the current offer from Hope [4]. - The Board has been criticized for its refusal to engage with the investors, citing the existing merger agreement with Hope as a barrier [3][5]. - The investors assert that the Board's position is unjustifiable and creates unnecessary roadblocks to finalizing a potentially superior offer [5][6]. Group 3: Shareholder Actions and Recommendations - Shareholders are encouraged to vote against the sale to Hope during the special meeting on November 6, 2024, to pressure the Board into negotiations [7]. - The investors believe that any deal would be preferable to the current agreement with Hope, which they argue is undervalued and detrimental to shareholder interests [6]. - Shareholders who previously voted in favor of the Hope merger can still change their votes before the upcoming meeting [8].

Core Viewpoint - The investors, led by Allan Landon and Blue Hill Advisors, are committed to completing a transaction with Territorial Bancorp Inc. and are urging shareholders to vote against the proposed sale to Hope Bancorp at the adjourned special meeting on November 6, 2024 [1][2]. Group 1: Investor Proposal and Strategy - The investors reaffirm their readiness to engage with Territorial's Board if the sale to Hope is rejected, maintaining their cash offer of $12.50 per share, which represents a substantial premium over the current value of the Hope merger consideration [1][2]. - The investors emphasize that the sale process conducted by the Board was flawed, as it occurred near the stock's all-time low after a nearly 70% decline, and involved only two other potential buyers [2]. - The investors argue that their proposal is likely to be viewed as superior, offering up to 30% of Territorial shareholders the chance to participate in the company's recovery, while the Board's approved sale values Territorial at the second lowest bank sale multiple in recorded history [2]. Group 2: Market Conditions and Shareholder Recommendations - Since the announcement of the sale to Hope in April 2024, the banking sector has improved, with expectations of lower interest rates benefiting Territorial through repricing of its higher-cost wholesale funding [2]. - A leading independent proxy advisory firm, Institutional Shareholder Services Inc. (ISS), has recommended that shareholders vote against the sale to Hope, stating that the competing offer from Blue Hill appears credible and could mitigate the downside risk of rejecting the merger [2]. Group 3: Shareholder Engagement - Territorial shareholders are encouraged to contact Blue Hill Advisors for more information and to express support for the investor proposal, with instructions available for those wishing to change their vote before the special meeting [3].

Core Viewpoint - Territorial Bancorp Inc. strongly criticizes Blue Hill Advisors for failing to provide essential information regarding its ability to finance and complete a proposed acquisition, raising doubts about Blue Hill's credibility and intentions [1][2][4]. Group 1: Blue Hill's Proposal and Concerns - Blue Hill has not addressed fundamental questions about financing, regulatory approval, and completion of the acquisition, leading to increased uncertainty and skepticism about its preliminary indication of interest [1][2]. - Claims made by Blue Hill regarding "capital support" and assets under management (AUM) lack commitment and proof, questioning the legitimacy of its financing capabilities [2]. - Blue Hill has not disclosed the identities of its investors or management team, which raises concerns about transparency and regulatory compliance [2][4]. Group 2: Territorial's Position and Recommendations - The Board of Territorial Bancorp unanimously recommends that shareholders vote in favor of the merger with Hope Bancorp, emphasizing the benefits of the transaction [5][6]. - The merger with Hope Bancorp is structured as a 100% tax-free, stock-for-stock transaction, offering Territorial shareholders a 25% premium based on the stock price prior to the announcement [6]. - The merger is expected to enhance Territorial's business resilience, increase resources for growth, and provide a significant dividend increase for shareholders [7]. Group 3: Regulatory Process and Timeline - Territorial and Hope Bancorp have initiated the regulatory approval process, aiming to close the transaction by the end of 2024 [8].

Merger Agreement - Hope Bancorp and the Company entered into a merger agreement valued at approximately $78.6 million, with a fixed exchange ratio of 0.8048 shares of Hope Bancorp common stock for each share of the Company's common stock[106]. Financial Performance - The company reported a net loss of $775,000 for Q2 2024, a decrease of $2.3 million or 151.8% compared to a net income of $1.5 million in Q2 2023[129]. - For the six months ended June 30, 2024, the company reported a net loss of $1.3 million, a decrease of $5.1 million, or 133.0%, compared to net income of $3.8 million for the same period in 2023[141]. - Net interest income decreased by $2.9 million, contributing significantly to the decline in net income[129]. - Net interest income for the six months ended June 30, 2024, decreased by $6.2 million, or 26.7%, to $17.0 million from $23.2 million for the same period in 2023[142]. - Noninterest income decreased by $30,000 for the three months ended June 30, 2024, primarily due to a decrease in service and other fees[137]. - Noninterest income decreased by $26,000, or 2.0%, for the six months ended June 30, 2024, primarily due to a decrease in service and other fees[149]. Asset and Liability Changes - Total assets decreased by $71.3 million, or 3.2%, to $2.2 billion as of June 30, 2024, primarily due to a $43.9 million decrease in cash and cash equivalents[118]. - Cash and cash equivalents were $82.8 million at June 30, 2024, a decrease of $43.9 million, or 34.6%, since December 31, 2023[118]. - Total loans were $1.3 billion at June 30, 2024, representing 59.9% of total assets, with a decrease of $7.2 million, or 0.6%, during the six months ended June 30, 2024[119]. - Total investment securities decreased by $20.7 million, or 2.9%, to $685.2 million at June 30, 2024[119]. - Deposits decreased by $63.9 million, or 3.9%, to $1.6 billion since December 31, 2023, primarily due to customers seeking higher interest rates[120]. - Federal Home Loan Bank advances decreased by $5.0 million to $237.0 million as of June 30, 2024[114]. Credit Losses and Provisions - The Company recorded a reversal of provision for credit losses of $7,000 for the six months ended June 30, 2024, compared to a provision of $112,000 for the same period in 2023[113]. - Provision for credit losses recorded a reversal of $26,000 for the three months ended June 30, 2024, compared to a provision of $212,000 for the same period in 2023[135]. - Provision for credit losses decreased by $238,000, also providing some relief to net income[129]. - Provision for credit losses recorded a reversal of $7,000 for the six months ended June 30, 2024, compared to a provision of $112,000 for the same period in 2023, resulting in an allowance for credit losses to total loans ratio of 0.39%[147]. Capital Ratios - Territorial Savings Bank exceeded all regulatory capital requirements and is considered "well capitalized" under regulatory guidelines as of June 30, 2024[159]. - As of June 30, 2024, Territorial Savings Bank's Tier 1 Leverage Capital ratio was 10.85%, significantly above the required 5.00%[161]. - Common Equity Tier 1 Risk-Based Capital ratio for Territorial Savings Bank was 26.54% as of June 30, 2024, exceeding the required 9.00%[161]. - Total Risk-Based Capital ratio for Territorial Bancorp Inc. was 28.98% as of June 30, 2024, surpassing the required 12.50%[161]. - The Bank's capital ratios exceeded the minimum thresholds for a "well-capitalized" institution as of both June 30, 2024, and December 31, 2023[162]. Interest Rates and Economic Value - Interest rates on Freddie Mac mortgage-backed securities increased by 23 basis points between March 31, 2024, and June 30, 2024, impacting the value of interest-earning assets[172]. - An instantaneous 400 basis point increase in interest rates would result in an estimated decrease in Economic Value of Equity (EVE) by $204,616, representing a 118.42% decline[171]. - The EVE ratio as a percent of the present value of assets was 9.32% at a 0 basis point change in interest rates[171]. Other Financial Metrics - Total interest-earning assets amounted to $2,120,652, with a yield of 3.40% for 2024[126]. - Total loans reached $1,305,844 with a yield of 3.72% for 2024, compared to $1,297,694 with a yield of 3.57% in 2023[126]. - Total interest-bearing liabilities were $1,840,256 with a cost of 2.07% for 2024, compared to $1,830,889 with a cost of 1.18% in 2023[126]. - The net interest margin for 2024 was reported at 1.60%, down from 2.19% in 2023[126]. - Interest income increased by $801,000, or 4.6%, to $18.1 million for the three months ended June 30, 2024, from $17.3 million for the same period in 2023[131]. - Interest expense increased by $3.7 million, or 59.0%, to $9.9 million for the three months ended June 30, 2024, from $6.2 million for the same period in 2023[132]. - Interest expense increased by $8.3 million, or 76.2%, to $19.1 million for the six months ended June 30, 2024, from $10.8 million for the same period in 2023[144]. - Interest expense on advances from the FRB was $1.2 million for the six months ended June 30, 2024, due to a $50.0 million advance from the FRB Bank Term Funding Program[146]. Operational Expenses - Noninterest expense increased by $474,000, further impacting profitability[129]. - Noninterest expense increased by $921,000, or 4.8%, for the six months ended June 30, 2024, totaling $20.0 million, with significant increases in federal deposit insurance premiums by 81.1% and other general and administrative expenses by 57.6%[148]. - Noninterest expense increased by $474,000 for the three months ended June 30, 2024, compared to the same period in 2023, driven by increases in merger-related legal and consulting expenses[139]. Deposit Trends - Estimated uninsured deposits were $394.1 million, or 25.1% of total deposits, as of June 30, 2024, down from $419.4 million, or 25.6%, at December 31, 2023[155]. - The company experienced a net decrease in deposits of $63.9 million for the six months ended June 30, 2024, as customers sought higher interest rates[157]. - The company originated $34.9 million in loans during the six months ended June 30, 2024, compared to $55.5 million in the same period of 2023[156]. Regulatory and Compliance - The company has not elected to follow the alternative framework for community bank leverage ratio, which is currently set at 9%[164]. - There have been no material changes in contractual obligations or funding needs between December 31, 2023, and June 30, 2024[166]. - The company does not permit hedging activities, limiting exposure to high-risk mortgage derivatives[169].

Company Performance - Territorial Bancorp (TBNK) reported a quarterly loss of $0.09 per share, compared to the Zacks Consensus Estimate of a loss of $0.03, and a decline from earnings of $0.17 per share a year ago [1] - The company has not surpassed consensus EPS estimates over the last four quarters [2] - The quarterly report showed an earnings surprise of -200%, with a previous expectation of earnings at $0.02 per share, but resulting in a loss of $0.06, leading to a surprise of -400% [8] - Revenues for the quarter ended June 2024 were $8.9 million, missing the Zacks Consensus Estimate by 0.69%, and down from $11.78 million year-over-year [9] Future Outlook - The upcoming earnings report is expected to show quarterly earnings of $1.33 per share, reflecting a year-over-year change of -13.1%, with the consensus EPS estimate remaining unchanged over the last 30 days [7] - The current consensus EPS estimate for the coming quarter is -$0.04 on revenues of $8.94 million, and -$0.15 on revenues of $36.5 million for the current fiscal year [12] - The estimate revisions trend for Territorial Bancorp is mixed, resulting in a Zacks Rank 3 (Hold), indicating shares are expected to perform in line with the market in the near future [5] Industry Context - Territorial Bancorp operates within the Zacks Banks - Northeast industry, which is currently in the top 15% of over 250 Zacks industries [6] - The company has underperformed the market, with shares losing about 10.8% since the beginning of the year, while the S&P 500 gained 13.2% [10] - The performance of the stock is influenced by the overall industry outlook, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [11]