Territorial Bancorp (US:TBNK)2024-05-03 21:10Financial Performance - Territorial Bancorp Inc. reported a net loss of $482,000, or $(0.06) per diluted share, for Q1 2024[1] - The net loss for the three months ended March 31, 2024, was $482,000, compared to a net income of $2,316,000 in the same period of 2023[21] - Return on average assets was -0.09% for Q1 2024, a decline from 0.43% in Q1 2023[25] - The efficiency ratio for the quarter was 107.55%, significantly higher than 75.81% in the previous year[25] Income and Expenses - Total interest income increased by $1.27 million to $17.99 million in Q1 2024, driven by an $886,000 increase in interest earned on other investments and a $611,000 increase in interest earned on loans[5] - Total interest income for the three months ended March 31, 2024, was $17,991,000, an increase of 7.6% from $16,721,000 in the same period of 2023[21] - Net interest income after provision for credit losses decreased to $8,742,000, down 28.5% from $12,191,000 year-over-year[21] - Total noninterest income remained relatively stable at $593,000 compared to $589,000 in the prior year[21] - Total interest expense rose by $4.60 million in Q1 2024, primarily due to a $3.25 million increase in interest expense on deposits[6] - Noninterest expense increased by $447,000 in Q1 2024, mainly due to higher FDIC premiums and legal expenses[7] - Total noninterest expense increased to $10,060,000, up 4.6% from $9,613,000 in the same period last year[21] Assets and Deposits - Total assets decreased from $2.24 billion at December 31, 2023, to $2.19 billion at March 31, 2024[9] - Total assets decreased to $2,193,029,000 from $2,236,672,000 at the end of 2023[23] - Deposits decreased by $36.46 million from $1.64 billion at December 31, 2023, to $1.60 billion at March 31, 2024[10] - Deposits decreased to $1,600,148,000 from $1,636,604,000 at the end of 2023[23] Tax and Valuation - The effective tax rate for Q1 2024 was (33.52)%, compared to 26.87% in Q1 2023, with an income tax benefit of $243,000[8] - Book value per share slightly decreased to $28.33 from $28.45 at the end of 2023[25] Merger Agreement - The merger agreement with Hope Bancorp is valued at approximately $78.6 million, with a fixed exchange ratio of 0.8048 shares of Hope Bancorp common stock for each share of Territorial common stock[2] Liquidity - The Company maintained a strong liquidity position with $90 million in cash balances and total liquidity access of $901.70 million as of March 31, 2024[4] Asset Quality - The ratio of non-performing assets to total assets remained stable at 0.10% as of March 31, 2024[11]