Territorial Bancorp Inc. Reports Operating Results (10-Q)
Territorial Bancorp Inc. has a market cap of $231.2 million; its shares were traded at around $18.9 with and P/S ratio of 3.7. The dividend yield of Territorial Bancorp Inc. stocks is 1.1%.TBNK is in the portfolios of John Keeley of Keeley Fund Management, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.
Highlight of Business Operations: Assets. At March 31, 2010, our assets were $1.409 billion, an increase of $19.2 million, or 1.4%, from $1.390 billion at December 31, 2009. The increase was caused primarily by increases in cash and cash equivalents and in the loan portfolio.
Cash and Cash Equivalents. Cash and cash equivalents were $150.9 million at March 31, 2010 compared to $136.0 million at December 31, 2009. The increase resulted primarily from $33.6 million of repayments on investment securities held to maturity and a $29.6 million increase in deposits. This was partially offset by the purchase of $25.4 million of investment securities held to maturity and the repayment of $25.0 million of reverse repurchase agreements.
Loans. Total loans, including $4.1 million of loans held for sale, were $606.7 million at March 31, 2010, or 43.1% of total assets. During the three months ended March 31, 2010, the loan portfolio increased by $8.0 million, or 1.3%. The increase resulted primarily from one- to four-family residential loan production exceeding principal repayments and loan sales.
Securities. At March 31, 2010, our securities portfolio totaled $594.5 million, or 42.2% of assets and included $586.5 million classified as held-to-maturity and $8.0 million classified as available for sale. None of the underlying collateral consisted of subprime or Alt-A (traditionally defined as non-conforming loans having less than full documentation) loans.
It is reasonably possible that the fair values of the trust preferred securities could decline in the near term if the overall economy and the financial condition of some of the issuers continue to deteriorate and the liquidity of these securities remains low. As a result, there is a risk that other-than-temporary impairments may occur in the near term and any such amounts could be material to the Companys consolidated statements of income. The remaining amount of PreTSL XXIII which may be recognized in the future as a credit loss in the income statement is $1.1 million. PreTSL XXIV was previously written down to $0 in prior periods.
Borrowings. Historically, our borrowings consisted primarily of advances from the Federal Home Loan Bank of Seattle and funds borrowed under repurchase agreements. During the three months ended March 31, 2010, our borrowings decreased $25.0 million, or 19.2%, due to the payoff of $25.0 million of fixed-rate reverse repurchase agreements. At March 31, 2010, there were no Federal Home Loan Bank advances outstanding. We have not required further borrowings to fund our operations. Instead, we have funded our operations with the net proceeds from our stock offering, additional deposits and principal repayments on loans and mortgage-backed securities.
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