Territorial Bancorp Inc (TBNK) Announces Q3 2023 Earnings
Net income of $880,000, or $0.10 per diluted share, for Q3 2023
Strong liquidity position with $89.12 million in cash balances
Quarterly cash dividend of $0.05 per share approved
Non-performing assets to total assets ratio of 0.10% as of September 30, 2023
Released on October 27, 2023, Territorial Bancorp Inc (NASDAQ:TBNK) announced its third-quarter results for 2023. Despite a challenging interest rate environment, the company reported a net income of $880,000, or $0.10 per diluted share, for the three months ended September 30, 2023.
Financial Performance
Net interest income decreased by $4.31 million to $10.03 million for Q3 2023, compared to $14.34 million for the same period in 2022. Total interest income was $17.38 million for Q3 2023, compared to $16.15 million for Q3 2022. The increase in total interest income was primarily due to a $678,000 increase in interest earned on other investments and a $510,000 increase in interest earned on loans.
Noninterest income was $589,000 for Q3 2023, compared to $615,000 for Q3 2022. Noninterest expense decreased to $9.67 million for Q3 2023, compared to $9.77 million for Q3 2022.
Balance Sheet Overview
Total assets were $2.21 billion at September 30, 2023, and $2.17 billion at December 31, 2022. Loans receivable increased by $14.63 million and was $1.31 billion at September 30, 2023, and $1.29 billion at December 31, 2022. The increase in loans receivable occurred as new loan originations exceeded loan repayments and sales.
Deposits decreased by $65.14 million from $1.72 billion at December 31, 2022, to $1.65 billion at September 30, 2023. The decrease in deposits occurred as customers sought higher interest rates on their deposits than what the Company offers.
Capital Management and Asset Quality
The Company completed its twelfth share repurchase program and repurchased 21,898 shares during the three months ending September 30, 2023. The ratio of non-performing assets to total assets was 0.10% at September 30, 2023, and 0.11% at December 31, 2022.
Despite the challenging interest rate environment, Territorial Bancorp Inc (NASDAQ:TBNK) remains committed to maintaining its solid asset quality and strong capital levels, which are above regulatory required levels.
Explore the complete 8-K earnings release (here) from Territorial Bancorp Inc for further details.
This article first appeared on GuruFocus.
