Territorial Bancorp (TBNK) - 2024 Q2 - Quarterly Results

Financial Performance - The Company reported a net loss of $775,000, or $(0.09) per diluted share, for the three months ended June 30, 2024[21]. - The company reported a net loss of $775,000 for the three months ended June 30, 2024, compared to a net income of $1.50 million for the same period in 2023[34]. - Basic loss earnings per share were $(0.09) for the three months ended June 30, 2024, compared to earnings of $0.17 for the same period in 2023[34]. - The efficiency ratio increased to 112.20% for the three months ended June 30, 2024, compared to 80.72% for the same period in 2023[34]. Interest Income and Expenses - Total interest income increased by $801,000 to $18.09 million for the three months ended June 30, 2024, compared to $17.29 million for the same period in 2023[5]. - Net interest income decreased by $2.85 million for the three months ended June 30, 2024, compared to the same period in 2023[5]. - Net interest income decreased to $8.24 million for the three months ended June 30, 2024, compared to $11.09 million for the same period in 2023[34]. - Interest income from loans increased to $12.25 million for the three months ended June 30, 2024, from $11.70 million in the same period of 2023[34]. Asset and Deposit Changes - Total deposits decreased by $63.85 million from $1.64 billion at December 31, 2023, to $1.57 billion at June 30, 2024[8]. - Total assets decreased to $2.17 billion as of June 30, 2024, from $2.24 billion at December 31, 2023[27]. - Cash and cash equivalents decreased by $43.88 million to $82.78 million at June 30, 2024, from $126.66 million at December 31, 2023[27]. Non-Performing Assets and Credit Losses - Non-performing assets totaled $1.23 million at June 30, 2024, down from $2.26 million at December 31, 2023, with a non-performing assets to total assets ratio of 0.06%[9]. - The Company had $87,000 in delinquent mortgage loans 90 days or more past due at June 30, 2024, compared to $227,000 at December 31, 2023[9]. - The allowance for credit losses was $5.12 million at June 30, 2024, representing 0.39% of total loans[9]. Capital Ratios - The Company’s tier one leverage and risk-based capital ratios were 11.62% and 28.98%, respectively, as of June 30, 2024[1]. Merger Agreement - A definitive merger agreement was signed with Hope Bancorp, Inc., 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[3]. - The company intends to maintain the Territorial franchise in Hawaii following the merger agreement with Hope Bancorp[22]. Dividends - The Company declared a dividend of $0.01 per share, expected to be paid on August 23, 2024[2]. Noninterest Expenses - Noninterest expense increased by $474,000 for the three months ended June 30, 2024, primarily due to a $690,000 rise in general and administrative expenses[25]. Tax Rate - The effective tax rate for the three months ended June 30, 2024, was (26.89)%, compared to 27.33% for the same period in 2023[26].