Territorial Bancorp Inc. (TBNK)·Q4 2024 Earnings Summary

Executive Summary

• Q4 showed continued margin pressure and elevated expenses: net loss of $1.72M (–$0.20 diluted EPS) vs –$1.32M (–$0.15) in Q3 as efficiency ratio deteriorated to 137.09% and NIM fell to 1.39% from 1.42% sequentially .
• Deposit funding improved and wholesale funding diminished: deposits rose to $1.72B (+$81.06M YTD), FHLB advances fell to $160M, and FRB advances were fully repaid in Q4 (from $50M at Q3) .
• Expenses were impacted by $1.53M pre-tax merger-related costs; FDIC premiums also increased; asset quality remained strong with NPAs at 0.09% of assets and ACL/loans at 0.40% .
• Dividend maintained at $0.01; merger with Hope Bancorp advanced post-quarter with all regulatory approvals received on March 3, 2025; expected close in early April 2025—key near-term catalyst .

What Went Well and What Went Wrong

• What Went Well

  • Funding mix improved: deposits increased to $1.72B (+$81.06M vs YE23), enabling payoff of FRB advances and reduction in FHLB advances; supports lower reliance on wholesale funding going forward .
  • Asset quality remained resilient: NPAs were $1.93M (0.09% of assets), ACL/loans was 0.40%, and coverage of NPAs was 264.56% .
  • Strategic transaction momentum: “We are very pleased to have received the required regulatory approvals,” said Hope’s CEO; Territorial’s CEO highlighted enhanced growth and product breadth post-merger—regulatory approvals received March 3 with expected early April close .

• What Went Wrong

  • Persistent NIM compression: NIM declined to 1.39% in Q4 from 1.42% in Q3 and 1.56% in Q2 due to elevated deposit costs and mix shift into higher-cost CDs .
  • Operating leverage deteriorated: efficiency ratio worsened to 137.09% vs 123.46% in Q3 and 112.20% in Q2, reflecting merger-related expenses ($1.53M in Q4) and higher FDIC assessments .
  • YoY profitability decline: Q4 2023 produced net income of $0.33M ($0.04 EPS) vs Q4 2024 net loss of $1.72M (–$0.20), as deposit repricing outpaced asset yields and noninterest expense rose .

Financial Results

Sequential performance (oldest → newest)

Year-over-year comparison (oldest → newest)

KPIs and balance sheet (period-end where noted; oldest → newest)

Estimates vs actuals (Q4 2024)

• EPS and revenue consensus from S&P Global were unavailable via our data connector for TBNK; therefore, we cannot present beat/miss analysis for Q4 2024. Attempted retrieval failed due to missing CIQ mapping (SPGI) and no alternate published consensus was available.

Guidance Changes

• Company does not issue formal quantitative guidance in its press releases. Dividend policy and merger timeline updates provided.

Earnings Call Themes & Trends

Note: No Q4 earnings call transcript was available in our source set.

Management Commentary

• Strategic rationale and closing readiness: “We are very pleased to have received the required regulatory approvals,” said Hope Bancorp’s CEO, who cited strengthening the combined franchise, adding a stable deposit base, and diversifying with a high-quality residential mortgage portfolio .
• Territorial’s view on combination benefits: “This combination effectively enhances the opportunity to grow Territorial’s market share and elevate the customer experience by leveraging the combined company’s larger balance sheet, greater resources and more extensive array of banking products and services,” said Territorial’s Chairman, President and CEO .
• Q4 operating drivers from the release: Interest expense remained elevated due to higher CD and savings costs and the deposit mix shift; FRB advances were paid off in Q4; noninterest expense included $1.53M merger-related costs; FDIC premiums increased .

Q&A Highlights

• No Q4 earnings call transcript was available; no Q&A themes to report based on our source set.

Estimates Context

• We attempted to retrieve S&P Global consensus (EPS and revenue) for Q4 2024 and the prior two quarters; data were unavailable due to a missing CIQ mapping for TBNK in our connector, and we found no alternative published consensus in the company’s materials. Consequently, beat/miss analysis vs Wall Street is not provided for Q4 2024, Q3 2024, or Q2 2024.

Key Takeaways for Investors

• NIM remains under pressure (1.39% in Q4 vs 1.42% in Q3; 1.56% in Q2) as deposit repricing and mix shift into CDs continue to weigh on spread; watch for relief if rate cuts materialize and CD repricing rolls through .
• Operating expenses are temporarily elevated due to merger-related costs ($1.53M in Q4); normalization post-close could improve the efficiency ratio from the current 137% level if revenue stabilizes .
• Funding profile improved: deposits climbed to $1.72B while FRB advances were fully repaid and FHLB advances reduced—supportive of funding cost moderation over time .
• Asset quality remains a bright spot with NPAs at 0.09% and ACL/loans of 0.40%, offering resilience as the balance sheet reprices .
• Dividend maintained at $0.01, signaling conservatism while merger closes and earnings remain pressured .
• Merger with Hope Bancorp is the near-term catalyst: all regulatory approvals received (Mar 3) with expected early April close; integration execution and synergy capture are next milestones .
• Given lack of available Street estimates, focus on company-reported trajectory: monitor NIM stabilization, deposit mix normalization, and expense run-rate post-merger for evidence of earnings inflection .