DB:9TB

Stock Analysis Report

Territorial Bancorp

Executive Summary

Territorial Bancorp Inc. operates as the holding company for Territorial Savings Bank that provides various financial services to individuals, families, and businesses.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Share Price & News

How has Territorial Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

DB:9TB

-1.3%

DE Mortgage

-0.6%

DE Market


1 Year Return

0.8%

DB:9TB

-33.7%

DE Mortgage

-8.3%

DE Market

9TB outperformed the Mortgage industry which returned -18.3% over the past year.

9TB outperformed the Market in Germany which returned -8.3% over the past year.


Share holder returns

9TBIndustryMarket
7 Day1.3%-1.3%-0.6%
30 Day8.5%-2.4%1.8%
90 Day5.0%-20.6%-3.2%
1 Year5.1%0.8%-28.2%-33.7%-5.4%-8.3%
3 Year22.4%9.0%19.4%-4.0%19.3%8.9%
5 Year112.1%77.1%-7.5%-29.7%28.4%10.6%

Price Volatility Vs. Market

How volatile is Territorial Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Territorial Bancorp undervalued based on future cash flows and its price relative to the stock market?

13.25x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Territorial Bancorp's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Territorial Bancorp's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Territorial Bancorp is overvalued based on earnings compared to the Europe Mortgage industry average.

Territorial Bancorp is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Territorial Bancorp earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Territorial Bancorp is overvalued based on assets compared to the Europe Mortgage industry average.


Next Steps

Future Growth

How is Territorial Bancorp expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

-5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Territorial Bancorp's revenue is expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).

Territorial Bancorp's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Territorial Bancorp's revenue growth is positive but not above the Germany market average.

Territorial Bancorp's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.

Territorial Bancorp's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Territorial Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Territorial Bancorp performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Territorial Bancorp's year on year earnings growth rate has been positive over the past 5 years.

Territorial Bancorp's 1-year earnings growth exceeds its 5-year average (34.9% vs 5.7%)

Territorial Bancorp's earnings growth has exceeded the Europe Mortgage industry average in the past year (34.9% vs 9.2%).


Return on Equity

Territorial Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Territorial Bancorp used its assets more efficiently than the Europe Mortgage industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Territorial Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Territorial Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Territorial Bancorp has an acceptable proportion of non-loan assets held.

Territorial Bancorp has a sufficient allowance for bad loans.

Territorial Bancorp's liabilities are made up of primarily low risk sources of funding.

Territorial Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Territorial Bancorp are broadly funded by customer deposits.

Territorial Bancorp has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Territorial Bancorp's current dividend yield, its reliability and sustainability?

3.28%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Territorial Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).

Territorial Bancorp's dividend is above the markets top 25% of dividend payers in Germany (3.85%).

Territorial Bancorp has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Territorial Bancorp only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Territorial Bancorp's salary, the management and board of directors tenure and is there insider trading?

12.5yrs

Average management tenure


CEO

Allan Kitagawa (74yo)

33.5yrs

Tenure

US$1,825,636

Compensation

Mr. Allan S. Kitagawa has been the Chairman of the Board and Chief Executive Officer of Territorial BanCorp Inc. and Territorial Savings Bank since 1986 and has been its President since 2007. Mr. Kitagawa  ...


CEO Compensation Analysis

Allan's remuneration is higher than average for companies of similar size in Germany.

Allan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

12.5yrs

Average Tenure

67yo

Average Age

The average tenure for the Territorial Bancorp management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.5yrs

Average Tenure

74yo

Average Age

The average tenure for the Territorial Bancorp board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Territorial Bancorp individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€43,54603 Jun 19
Vernon Hirata
EntityIndividual
Role
Vice Chairman
Shares1,799
Max Price€24.39
Sell€85,68531 May 19
Vernon Hirata
EntityIndividual
Role
Vice Chairman
Shares3,500
Max Price€24.75
Sell€64,07429 May 19
Vernon Hirata
EntityIndividual
Role
Vice Chairman
Shares2,598
Max Price€24.83
Sell€2,85729 May 19
Vernon Hirata
EntityIndividual
Role
Vice Chairman
Shares115
Max Price€25.03
Sell€1,51024 May 19
Vernon Hirata
EntityIndividual
Role
Vice Chairman
Shares60
Max Price€25.17
Sell€60,26624 May 19
Vernon Hirata
EntityIndividual
Role
Vice Chairman
Shares2,428
Max Price€25.19
Sell€128,10910 May 19
Ralph Nakatsuka
EntityIndividual
Role
Vice Chairman
Shares5,025
Max Price€25.58
Sell€90,50715 Feb 19
David Murakami
EntityIndividual
Role
Member of the Board of Directors
Shares3,735
Max Price€24.45
Sell€181,18415 Feb 19
Allan Kitagawa
EntityIndividual
Role
Chairman
Chairman of the Board
Shares7,474
Max Price€24.57
Sell€89,65014 Feb 19
Howard Ikeda
EntityIndividual
Role
Member of the Board of Directors
Shares3,666
Max Price€24.58

Ownership Breakdown


Management Team

  • Walter Ida

    Director of Investor Relations & Senior VP

    • Tenure: 10.5yrs
  • Stanley Tanaka

    Senior Vice President of Administrative

  • Dennis Hironaka

    Senior Vice President of Internal Audit

  • Allan Kitagawa (74yo)

    Chairman

    • Tenure: 33.5yrs
    • Compensation: $1.83m
  • Robert Costa

    Senior Vice President of Branch Administration

  • Richard K. Lau (77yo)

    Senior VP & Chief Lending Officer

    • Compensation: $274.31k
  • Vernon Hirata (67yo)

    Vice Chairman

    • Tenure: 12.5yrs
    • Compensation: $836.10k
  • Ralph Nakatsuka (64yo)

    Vice Chairman

    • Tenure: 12.5yrs
    • Compensation: $924.75k
  • Denise Takashima

    Senior Vice President of Business Development & Marketing

  • Melvin Miyamoto (66yo)

    Senior VP

    • Tenure: 4.1yrs
    • Compensation: $272.00k

Board Members

  • Allan Kitagawa (74yo)

    Chairman

    • Tenure: 10.5yrs
    • Compensation: $1.83m
  • Kirk Caldwell (67yo)

    Director

    • Tenure: 10.5yrs
    • Compensation: $43.87k
  • Howard Ikeda (74yo)

    Director

    • Tenure: 10.5yrs
    • Compensation: $64.21k
  • David Murakami (80yo)

    Director

    • Tenure: 10.5yrs
    • Compensation: $40.81k
  • Richard Murakami (92yo)

    Lead Independent Director

    • Tenure: 10.5yrs
    • Compensation: $40.81k
  • Francis Tanaka (73yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: $40.81k
  • Jennifer Isobe (60yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: $5.85k

Company Information

Territorial Bancorp Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Territorial Bancorp Inc.
  • Ticker: 9TB
  • Exchange: DB
  • Founded: 1921
  • Industry: thrifts and mortgage finance
  • Sector: banks
  • Market Cap: US$273.664m
  • Listing Market Cap: US$243.780m
  • Shares outstanding: 9.16m
  • Website: Click here

Number of Employees


Location

  • Territorial Bancorp Inc.
  • 1132 Bishop Street
  • Suite 2200
  • Honolulu
  • Hawaii
  • 96813
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TBNKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2009
9TBDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2009

Biography

Territorial Bancorp Inc. operates as the holding company for Territorial Savings Bank that provides various financial services to individuals, families, and businesses. The company offers a range of deposi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/18 21:27
End of Day Share Price2019/07/18 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.