Territorial Bancorp net income $3.53 million
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The board approved a payment of a quarterly cash dividend of $0.16 per share.
The company also announced that its board approved a payment of a quarterly cash dividend of $0.16 per share. The dividend is expected to be paid on May 28, 2015 to stockholders of record as of May 14, 2015.
Allan Kitagawa, chairman and chief executive officer, said, "The Company continues to perform well. Our loan portfolio grew by 7.5% during the first quarter while net interest income rose by 4.7%.
"We continue to focus on improving shareholder returns as we repurchase common stock and pay dividends. The dividend, which will be paid on May 28, 2015, represents our 21st consecutive quarterly dividend payment."
Net interest income after provision for loan losses increased to $13.58 million for the three months ended March 31, 2015 from $13.15 million for the three months ended March 31, 2014. Total interest and dividend income was $15.29 million for the three months ended March 31, 2015 compared to $14.66 million for the three months ended March 31, 2014.
The $631,000 growth in interest and dividend income was primarily due to a $1.15 million increase in interest earned on loans due to growth in loans receivable. The increase in interest income on loans was offset by a $551,000 decline in interest earned on investment securities that occurred primarily because of a decrease in the size of the investment portfolio.
Total interest expense increased to $1.52 million for the three months ended March 31, 2015 from $1.50 million for the three months ended March 31, 2014. During the quarter, interest expense on deposits rose by $43,000 due to an increase in total deposits.
Interest expense on securities sold under agreements to repurchase declined by $31,000 because of a decrease in these borrowings. During the quarter ended March 31, 2015, the provision for loan losses was $194,000 compared to a $9,000 provision for the three months ended March 31, 2014.
Noninterest income was $1.25 million for the three months ended March 31, 2015 compared to $1.36 million for the three months ended March 31, 2014. The reduction in noninterest income was primarily due to a $110,000 decrease in gain on sale of investment securities that occurred because of a reduction in the amount of securities sold.
Noninterest expense was $8.90 million for the three months ended March 31, 2015 compared to $8.86 million for the three months ended March 31, 2014. There was an increase in other general and administrative expenses which was offset by a decrease in salaries and employee benefits.
Total assets increased to $1.715 billion at March 31, 2015 from $1.692 billion at December 31, 2014. Loans receivable grew to $1.039 billion at March 31, 2015 from $968.21 million at December 31, 2014 as residential mortgage loan originations exceeded loan repayments and sales.
The growth in loans receivable was funded primarily by a $21.78 million increase in deposits, a $29.29 million decrease in cash and cash equivalents and $20.46 million received from repayments and sales of mortgage-backed securities.
Deposits increased to $1.381 billion at March 31, 2015 from $1.360 billion at December 31, 2014. Total stockholders' equity decreased to $215.15 million at March 31, 2015 from $216.38 million at December 31, 2014.
The decrease in stockholders' equity occurred as the Company's share repurchases exceeded the net income for the quarter. Through March 31, 2015, the Company has repurchased 2,947,894 shares of stock or 24.1% of the shares issued in its initial public offering in 2009.
Total delinquent loans 90 days or more past due and not accruing totaled $842,000 (4 loans) at March 31, 2015, compared to $758,000 (4 loans) at December 31, 2014. Non-performing assets totaled $4.32 million at March 31, 2015 compared to $4.45 million at December 31, 2014.
The ratio of non-performing assets to total assets declined to 0.25% at March 31, 2015 from 0.26% at December 31, 2014 and continues to remain one of the lowest in the country.
The allowance for loan losses at March 31, 2015 was $1.87 million and represented 0.18% of total loans compared to $1.69 million and 0.17% of total loans as of December 31, 2014.
The board approved a quarterly cash dividend on its common stock of $0.16 per share. The dividend is expected to be paid on May 28, 2015 to stockholders of record as of May 14, 2015. ■