Territorial Bancorp Inc. Announces Fourth Quarter 2024 Results

Core Points - Territorial Bancorp Inc. reported a net loss of $1.72 million, or $0.20 per diluted share, for the three months ended December 31, 2024, primarily due to $1.53 million in pre-tax merger-related expenses [1] - The Board of Directors approved a dividend of $0.01 per share, expected to be paid on February 28, 2025 [2] - The merger agreement with Hope Bancorp, Inc. involves a stock-for-stock transaction 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 Bancorp common stock [3][4] Financial Performance - Net interest income decreased by $2.21 million to $7.21 million for the three months ended December 31, 2024, compared to the same period in 2023 [5][22] - Total interest income was $17.91 million, a slight increase from $17.69 million in the previous year, driven by higher interest earned on loans and other investments [5] - Total interest expense increased by $2.42 million to $10.70 million, primarily due to higher costs associated with certificates of deposit and savings accounts [6][22] Asset Quality - The ratio of non-performing assets to total assets was 0.09% at December 31, 2024, compared to 0.10% at December 31, 2023 [7][15] - The allowance for credit losses was $5.11 million, representing 0.40% of total loans, slightly up from 0.39% in the previous year [15][27] Balance Sheet Highlights - Total assets decreased to $2.17 billion at December 31, 2024, from $2.24 billion a year earlier [13][25] - Deposits increased by $81.06 million to $1.72 billion, primarily due to deposits from state and local governments [14][25] - Loans receivable decreased by $21.89 million to $1.29 billion, attributed to loan repayments exceeding new originations [13][25] Noninterest Income and Expenses - Noninterest income increased by $139,000 to $742,000, mainly due to a decrease in pension expenses [10][22] - Noninterest expense rose by $1.42 million to $10.90 million, largely due to increased general and administrative expenses, including $1.53 million in merger-related costs [11][22] Capital Ratios - The tier one leverage and risk-based capital ratios were 11.68% and 28.96%, respectively, indicating the company is well-capitalized [7] - The efficiency ratio was 137.09%, reflecting higher noninterest expenses relative to income [27]