(By Balaseshan) Territorial Bancorp Inc. (NASDAQ: TBNK) reported a 11.3% increase in quarterly earnings on higher non-interest income despite a 6.4% decline in net interest income. Results exceeded Street's expectations and the holding company of Territorial Savings Bank declared dividend.
Earnings for the fourth quarter were $3.81 million or $0.37 per share, up from $3.42 million or $0.33 per share in the same period last year.
Net interest income fell to $12.30 million from $13.14 million, due to a decline in interest earned on investment securities resulting from a $40.9 million reduction in the Bank's investment portfolio.
Non-interest income grew to $2.30 million from $1.59 million, primarily due to gain on sale of loans created by higher loan production during the quarter and gain on sale of investment securities.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.34 per share on revenue of $14.09 million for the fourth quarter.
Non-interest expense rose to $8.7 million from $8.4 million, primarily due to higher salary and employee benefit expense, occupancy expense and other general and administrative expenses.
Total assets grew to $1.575 billion at December 31, 2012 from $1.538 billion at December 31, 2011. Cash and cash equivalents increased to $182.8 million at December 31, 2012 from $131.9 million last year.
Loans receivable grew to $774.9 million at December 31, 2012 from $688.1 million last year, due to an increase in residential mortgage loan originations. Deposits increased to $1.238 billion at December 31, 2012 from $1.166 billion at December 31, 2011.
The company also said its board of directors approved a quarterly cash dividend of $0.12 per common share. The dividend is expected to be paid on March 4 to stockholders of record as of February 18.
TBNK is trading down 1.28% at $23.16 on Monday. The stock has been trading between $20.02 and $24.35 for the past 52 weeks.