Territorial Bancorp Upped to Strong Buy


Zacks Investment Research upgraded Territorial Bancorp Inc. (TBNK) to a Zacks Rank #1 (Strong Buy) on May 15, 2014.

Why the Upgrade?

Territorial Bancorp has been witnessing rising earnings estimates on the back of decent first-quarter 2014 results, including steady loan growth and fall in the provision for loan losses. The long-term expected earnings growth rate for this stock is 4.0%. Additionally, this Honolulu, HI-based bank holding company posted positive earning surprises in the trailing four quarters with an average beat of 12.9%.

Territorial Bancorp reported its first-quarter results on May 1 with earnings per share of 37 cents, beating the Zacks Consensus Estimate by 12.1%. Furthermore, earnings were 2.8% higher than the prior-year quarter figure of 36 cents.

Better-than-expected results were primarily driven by strong loan growth, a fall in the provision for loan losses and decline in interest expenses. Yet, these positives were partially offset by rising operating expenses and fall in non-interest income.

Loans grew 3.4% year over year, while deposits declined 2.6%. Non-performing assets as a percent of total assets fell 6 basis points to 0.31%.
On the flip side, a 1.7% rise in operating expenses and a 42.5% decline in non-interest income were recorded.

Over the last 60 days, the Zacks Consensus Estimate for 2014 increased 5.9% to $1.43 per share. For 2015, the Zacks Consensus Estimate advanced 4.2% to $1.49 per share over the same time period.

Other Stocks to Consider

Apart from Territorial Bancorp, other Northeast banks worth considering include S&T Bancorp Inc. (STBA), Univest Corporation of Pennsylvania (UVSP) and Bryn Mawr Bank Corp. (BMTC). While both S&T Bancorp and Univest sport a Zacks Rank #1 (Strong Buy), Bryn Mawr carries a Zacks Rank #2 (Buy).

Read the Full Research Report on TBNK
Read the Full Research Report on STBA
Read the Full Research Report on UVSP
Read the Full Research Report on BMTC

Zacks Investment Research

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