Territorial Bancorp (TBNK) AI Stock Analysis

• Market Cap: $73.59M
• Dividend Yield: 0.48%
• Average Volume (3M): 12.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: 4.69%
• EPS Growth: -186.98%
• Country: US
• Employees: 232
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): -0.50
• Shares Outstanding: 9,675,000
• 10 Day Avg. Volume: 19,460
• 30 Day Avg. Volume: 12,224
• PEG Ratio: 0.18
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 1.98
• P/FCF Ratio: -10.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ―

Overall, Territorial Bancorp's stock score is low due to significant financial challenges including declining revenues, negative profitability, and cash flow issues. Technical analysis indicates weak market momentum, and valuation metrics raise concerns about future performance sustainability. The stock faces significant risks that need to be addressed to improve its standing.

Territorial Bancorp Business Overview & Revenue Model

Company Description

Territorial Bancorp Inc. (TBNK) is a bank holding company that operates through its subsidiary, Territorial Savings Bank. Based in Honolulu, Hawaii, the company provides a range of financial services primarily in the retail banking sector. Its core services include accepting deposits, offering mortgage loans, and providing other consumer and commercial banking services. The bank focuses on serving individuals and small businesses, particularly emphasizing residential mortgage lending.

How the Company Makes Money

Territorial Bancorp Inc. makes money primarily through interest income derived from its loan portfolio, which includes residential mortgage loans, consumer loans, and commercial loans. A significant portion of its revenue comes from the interest rate spread between the interest earned on loans and the interest paid on deposits. Additionally, the bank generates non-interest income from fees related to banking services, such as account maintenance fees, transaction fees, and other service charges. The company's earnings are also influenced by its investment portfolio, which includes securities that generate interest income. Territorial Bancorp's financial performance is affected by factors such as interest rate fluctuations, the economic environment in Hawaii, and regulatory compliance costs.

Territorial Bancorp Financial Statement Overview

Summary

Territorial Bancorp faces several financial challenges, highlighted by declining revenues, negative profitability, and cash flow issues in 2024. Despite a stable equity ratio, increased leverage and cash constraints pose risks. The company needs to address revenue growth and profitability to improve financial health.

Income Statement

The income statement shows a declining trend in revenues and profitability. Total revenue decreased from $45.1 million in 2023 to $36.4 million in 2024, indicating a negative revenue growth rate. The net income also turned negative in 2024, leading to a negative net profit margin. EBIT margin has also seen a steep decline, further highlighting profitability challenges. The lack of EBITDA data for 2024 prevents complete margin analysis.

Balance Sheet

The balance sheet exhibits a stable equity ratio with stockholders' equity comprising a decent portion of total assets. However, there is a noticeable increase in net debt and a reduction in cash and cash equivalents. The debt-to-equity ratio remains moderate but increased total liabilities and reduced equity highlight potential leverage concerns. Return on equity is negative due to the net loss, impacting investor returns.

Cash Flow

Cash flow statements indicate a challenging liquidity position with zero operating and free cash flow in 2024, suggesting cash generation issues. Previous periods showed positive, albeit fluctuating, cash flows, but the current absence emphasizes significant operational challenges. The lack of operating cash flow relative to net income and the absence of free cash flow highlight potential sustainability concerns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
36.40M	45.10M	59.70M	60.50M	64.37M
	Gross Profit
36.40M	45.10M	59.70M	60.50M	64.37M
	EBIT
-2.87M	6.84M	25.57M	23.80M	25.32M
	EBITDA
0.00	10.75M	25.60M	28.02M	29.83M
	Net Income Common Stockholders
-4.30M	5.03M	16.16M	17.43M	18.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
123.52M	126.66M	61.37M	99.86M	367.11M
	Total Assets
2.17B	2.24B	2.17B	2.13B	2.11B
	Total Debt
160.00M	259.30M	156.29M	151.74M	154.12M
	Net Debt
36.48M	132.64M	115.74M	51.88M	-209.42M
	Total Liabilities
1.92B	1.99B	1.91B	1.87B	1.86B
	Stockholders Equity
248.35M	251.09M	256.55M	256.32M	248.71M
Cash Flow		Free Cash Flow
0.00	7.57M	11.95M	12.16M	19.23M
	Operating Cash Flow
0.00	8.26M	16.67M	12.52M	20.99M
	Investing Cash Flow
0.00	16.87M	-95.25M	-283.01M	298.28M
	Financing Cash Flow
0.00	60.98M	19.28M	6.80M	-533.00K

Territorial Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBNK, the sentiment is Negative. The current price of 8.33 is above the 20-day moving average (MA) of 8.33, below the 50-day MA of 8.53, and below the 200-day MA of 9.45, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 24.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBNK.

Territorial Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBWM	75 Outperform	$707.21M	9.07	13.55%	3.37%	12.26%	-6.93%
HFWA	72 Outperform	$769.08M	15.20	5.95%	4.25%	9.12%	11.62%
OCFC	71 Outperform	$979.09M	10.97	5.51%	4.77%	1.38%	-10.46%
WSBF	69 Neutral	$256.76M	13.28	5.50%	4.46%	5.89%	96.63%
ESSA	68 Neutral	$186.64M	11.86	6.43%	3.26%	5.57%	-16.40%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
TBNK	41 Neutral	$73.59M	―	-1.72%	0.48%	4.69%	-186.98%

Territorial Bancorp Corporate Events

Territorial Bancorp Merges with Hope Bancorp in 2025

On April 2, 2025, Territorial Bancorp completed a merger with Hope Bancorp, resulting in the conversion of Territorial Bancorp’s common stock into Hope Bancorp’s common stock at a specified exchange ratio. This merger led to the delisting of Territorial Bancorp from NASDAQ and the cessation of its corporate existence, with Hope Bancorp assuming its operations and responsibilities.