NasdaqGS:TBNK

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet established dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TBNK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

TBNK

3.1%

US Mortgage

3.0%

US Market


1 Year Return

-21.1%

TBNK

-19.9%

US Mortgage

15.8%

US Market

Return vs Industry: TBNK underperformed the US Mortgage industry which returned -19.9% over the past year.

Return vs Market: TBNK underperformed the US Market which returned 15.4% over the past year.


Shareholder returns

TBNKIndustryMarket
7 Day0.2%3.1%3.0%
30 Day2.2%-6.0%6.0%
90 Day-13.1%24.4%16.4%
1 Year-17.8%-21.1%-17.7%-19.9%18.4%15.8%
3 Year-14.0%-23.9%-3.7%-10.6%44.8%35.4%
5 Year2.4%-15.2%5.8%-5.9%75.7%56.7%

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

Valuation

Is Territorial Bancorp undervalued compared to its fair value and its price relative to the market?

1.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TBNK ($22.01) is trading below our estimate of fair value ($22.42)

Significantly Below Fair Value: TBNK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TBNK is good value based on its PE Ratio (10.6x) compared to the US Mortgage industry average (11.1x).

PE vs Market: TBNK is good value based on its PE Ratio (10.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TBNK is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: TBNK's PB Ratio (0.8x) is in line with the US Mortgage industry average.


Next Steps

Future Growth

How is Territorial Bancorp forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TBNK's forecast earnings growth (1.8% per year) is below the savings rate (2.2%).

Earnings vs Market: TBNK's earnings (1.8% per year) are forecast to grow slower than the US market (22.6% per year).

High Growth Earnings: TBNK's earnings are forecast to grow, but not significantly.

Revenue vs Market: TBNK's revenue (2.5% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: TBNK's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TBNK's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has Territorial Bancorp performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TBNK has high quality earnings.

Growing Profit Margin: TBNK's current net profit margins (30.4%) are lower than last year (31.9%).


Past Earnings Growth Analysis

Earnings Trend: TBNK's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: TBNK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TBNK had negative earnings growth (-9%) over the past year, making it difficult to compare to the Mortgage industry average (7.1%).


Return on Equity

High ROE: TBNK's Return on Equity (7.9%) is considered low.


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

Asset Level: TBNK's Assets to Equity ratio (8.6x) is low.

Allowance for Bad Loans: TBNK has a sufficient allowance for bad loans (412%).

Low Risk Liabilities: 89% of TBNK's liabilities are made up of primarily low risk sources of funding.

Loan Level: TBNK has an appropriate level of Loans to Assets ratio (74%).

Low Risk Deposits: TBNK's Loans to Deposits ratio (93%) is appropriate.

Level of Bad Loans: TBNK has an appropriate level of bad loans (0%).


Next Steps

Dividend

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

6.45%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TBNK's dividend (6.45%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: TBNK's dividend (6.45%) is in the top 25% of dividend payers in the US market (4.45%)


Stability and Growth of Payments

Stable Dividend: TBNK's dividend payments have been volatile in the past 10 years.

Growing Dividend: TBNK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44%), TBNK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TBNK's dividends in 3 years are forecast to be covered by earnings (54.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.6yrs

Average management tenure


CEO

Allan Kitagawa (75 yo)

34.58yrs

Tenure

US$1,761,176

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

Compensation vs Market: Allan's total compensation ($USD1.76M) is above average for companies of similar size in the US market ($USD1.33M).

Compensation vs Earnings: Allan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Allan Kitagawa
Chairman34.58yrsUS$1.76m2.41%
$ 4.8m
Vernon Hirata
Vice Chairman13.58yrsUS$825.39k1.63%
$ 3.3m
Ralph Nakatsuka
Vice Chairman & Co-COO13.58yrsUS$928.30k1.82%
$ 3.6m
Melvin Miyamoto
Senior VP5.17yrsUS$272.00k0.49%
$ 970.6k
Karen Cox
Senior Vice President of Administration36.58yrsno data0.44%
$ 887.0k
Walter Ida
Director of Investor Relations & Senior VP11.58yrsno datano data
Stanley Tanaka
Senior Vice President of Administrativeno datano datano data
Denise Takashima
Senior Vice President of Business Development & Marketingno datano datano data
Robert Costa
Senior Vice President of Branch Administrationno datano datano data
Dennis Hironaka
Senior Vice President of Internal Auditno datano datano data
Richard K. Lau
Senior VP & Chief Lending Officerno dataUS$274.31k0.72%
$ 1.4m

13.6yrs

Average Tenure

71yo

Average Age

Experienced Management: TBNK's management team is seasoned and experienced (13.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Allan Kitagawa
Chairman34.58yrsUS$1.76m2.41%
$ 4.8m
Kirk Caldwell
Independent Director11.58yrsUS$43.87k0.38%
$ 753.3k
Howard Ikeda
Independent Director11.58yrsUS$60.74k0.44%
$ 887.0k
David Murakami
Independent Director11.58yrsUS$40.81k0.30%
$ 608.4k
Francis Tanaka
Independent Director8.92yrsUS$40.81k0.019%
$ 38.6k
Jennifer Isobe
Independent Director1.83yrsUS$40.81kno data
John Ohama
Independent Director0.92yrUS$11.70k0.11%
$ 220.1k

11.6yrs

Average Tenure

74yo

Average Age

Experienced Board: TBNK's board of directors are seasoned and experienced ( 11.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TBNK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Territorial Bancorp Inc.
  • Ticker: TBNK
  • Exchange: NasdaqGS
  • Founded: 1921
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$199.551m
  • Shares outstanding: 9.07m
  • Website: https://www.territorialsavings.net

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 in the State of Hawaii. The company o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 00:29
End of Day Share Price2020/08/06 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.