Territorial Bancorp (TBNK) - 2024 Q4 - Annual Results

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].