Territorial Savings Bank beat analysts’ estimates as net profit edged up 1.3% in the second quarter on improved margins from higher interest rates and $1.5 million interest earned on investment securities.

The state’s fifth-largest bank today reported net income of $4.11 million, or 46 cents per share, to beat analysts’ consensus estimate of 41 cents. In the prior year quarter, Territorial earned $4.06 million, or 44 cents per share.

“We were able to increase our net interest income by 7.54% and our diluted earnings per share by 4.55%,” Territorial President and CEO Allan Kitagawa said in a statement. “Our strong capital and the quality of our assets will enable us to serve our community in these uncertain times. The company intends to continue to build shareholder value through dividends and share buybacks. »

Territorial Bancorp Inc., the holding company, declared a quarterly dividend of 23 cents per share to be paid Aug. 25 to shareholders of record as of Aug. 11. On July 12, the company also announced that it had repurchased 220,029 common shares and completed its 11th share buyback program.

The bank‘s net interest margin, which is the difference between what it pays out in deposits and what it generates in loans, rose to 2.72% last quarter from 2.54%. % the previous year. Net interest income increased 7.5% to $14.1 million.

Non-interest revenue, which includes service charges and fees, fell 53.7% to $800,000, primarily due to a $911,000 lower gain on sale investment securities which occurred because no securities were sold during the quarter ended June 30.

Territorial released $326,000 from its loan loss reserve last quarter that had been set aside for potential loan losses. That compares to the $372,000 released to its income statement in the second quarter of 2021.

Territorial’s loans receivable were virtually flat with the prior year quarter at $1.29 billion. Deposits increased 3% to $1.73 billion.

Shares of the company rose 19 cents to $22.16 ahead of the earnings release.

SECOND QUARTER NET

$4.11 million

NET OF THE YEAR EARLIER

$4.06 million