Territorial Bancorp Inc. (TBNK): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the story behind Territorial Bancorp Inc. (TBNK), the Honolulu-based company with roots stretching back to 1921? As of December 31, 2023, Territorial Bancorp had total assets of $2.24 billion, total loans of $1.31 billion and total deposits of $1.64 billion. From its humble beginnings to its recent merger with Hope Bancorp, there's a lot to uncover, so keep reading to learn more about its history, ownership, mission, and how it operates and generates revenue.

Territorial Bancorp Inc. (TBNK) History

Territorial Bancorp Inc. Founding Timeline

Year established

Territorial Bancorp Inc. was established in 1921.

Original location

The company's original location was in the Territory of Hawaii, now the state of Hawaii.

Founding team members

Territorial Bancorp Inc. was originally founded as Territorial Building and Loan Association. While specific names of all founding team members are not widely publicized, it was established by community leaders in Hawaii to promote homeownership.

Initial capital/funding

Information regarding the specific initial capital or funding for Territorial Building and Loan Association in 1921 is not readily available in the provided search results.

Territorial Bancorp Inc. Evolution Milestones

Territorial Bancorp Inc. Transformative Moments

• Becoming a Publicly Traded Company: In 2007, Territorial Bancorp Inc. went public. This move provided access to capital markets, enabling the company to fund growth initiatives and enhance its competitive position.
• Transition to a Bank Holding Company: The change to Territorial Bancorp Inc. in 2011 reflected a strategic shift towards a broader range of banking services and greater regulatory oversight.
• Leadership Changes: The appointment of David R. Morimoto as President in 2023 signals a renewed focus on strategic growth and operational efficiency.
• Expansion and Community Focus: Throughout its history, Territorial Bancorp Inc. has remained committed to serving the local community in Hawaii, offering personalized financial solutions and supporting local initiatives.

To gain more insights into the company's financial standing, consider reading: Breaking Down Territorial Bancorp Inc. (TBNK) Financial Health: Key Insights for Investors

Territorial Bancorp Inc. (TBNK) Ownership Structure

Territorial Bancorp Inc. operates with a mixed ownership structure, encompassing individual investors, institutional shareholders, and potentially some insider ownership.

Territorial Bancorp Inc.'s Current Status

Territorial Bancorp Inc. is a publicly traded company, meaning its shares are available for purchase by the general public on a stock exchange. As of its latest filing, Territorial Bancorp Inc. had 9,274,367 outstanding shares of common stock.

Territorial Bancorp Inc.'s Ownership Breakdown

The following table provides an overview of the ownership distribution of Territorial Bancorp Inc.'s shares:

Territorial Bancorp Inc.'s Leadership

Territorial Bancorp Inc. is guided by a team of experienced leaders. As of the latest available information, key figures include:

• Allan Kitagawa serves as the Chairman, President, and Chief Executive Officer.
• Eva Kwok holds the position of Senior Vice President and Chief Financial Officer.

For insights into the company's guiding principles, explore Mission Statement, Vision, & Core Values of Territorial Bancorp Inc. (TBNK).

Territorial Bancorp Inc. (TBNK) Mission and Values

Territorial Bancorp Inc. operates with a commitment to serving its customers and community, guided by a clear mission and set of values. These principles shape the company's actions and long-term goals.

Territorial Bancorp Inc.'s Core Purpose

Official mission statement

Territorial Bancorp Inc.'s mission statement is not explicitly available in the provided search results. However, based on their operations and focus, a general inference can be made:

To provide financial solutions and build lasting relationships within the communities we serve, while delivering value to our shareholders.

Vision statement

Similar to the mission statement, a specific vision statement for Territorial Bancorp Inc. is not found in the search results. An inferred vision statement could be:

• To be the leading financial institution in Hawaii, recognized for our commitment to customer satisfaction, community development, and shareholder value.

Company slogan/tagline

No specific slogan or tagline for Territorial Bancorp Inc. is available in the search results. Without explicit information, this aspect remains unknown.

For more in-depth information, check this link: Mission Statement, Vision, & Core Values of Territorial Bancorp Inc. (TBNK).

Territorial Bancorp Inc. (TBNK) How It Works

Territorial Bancorp Inc. operated as a bank holding company offering a variety of FDIC-insured deposit and loan products for consumers and small businesses, primarily in Hawaii. However, on April 2, 2025, Hope Bancorp completed its merger with Territorial Bancorp Inc. As a result, Territorial Savings Bank now operates as a division of Bank of Hope under the name Territorial Savings, preserving its legacy and commitment to local communities.

Territorial Savings, a division of Bank of Hope's Product/Service Portfolio

Territorial Savings, a division of Bank of Hope's Operational Framework

Territorial Savings, a division of Bank of Hope, operates with a focus on serving the Hawaiian community while leveraging the resources and infrastructure of its parent company. Its operational framework includes:

• Accepting Deposits: Gathering funds from the general public through various deposit accounts.
• Investing Deposits: Allocating these funds, along with those generated from operations and borrowings, into residential mortgage loans and investment securities.
• Loan Origination: Providing various loan products, including residential mortgages, home equity loans, and commercial real estate loans.
• Customer Service: Delivering personalized, island-style service through its branch network and digital channels.
• Community Focus: Maintaining a strong commitment to local communities, preserving the Territorial brand and culture.

Territorial Savings, a division of Bank of Hope's Strategic Advantages

Territorial Savings, a division of Bank of Hope, benefits from several strategic advantages:

• Local Expertise: Deep understanding of the Hawaiian market and customer needs.
• Established Relationships: Long-standing relationships with customers and communities in Hawaii. The average customer relationship tenure was 14.6 years.
• Strong Brand: A well-known and respected brand in Hawaii, with a history dating back to 1921.
• Access to Resources: Leveraging Bank of Hope's larger balance sheet, greater resources, and enhanced technology platforms. Bank of Hope had $17.05 billion in total assets as of December 31, 2024.

For more information, you can explore the Mission Statement, Vision, & Core Values of Territorial Bancorp Inc. (TBNK).

Territorial Bancorp Inc. (TBNK) How It Makes Money

Territorial Bancorp Inc. primarily makes money through traditional banking activities, such as generating interest income from loans and investments, as well as non-interest income from services provided to its customers.

Territorial Bancorp Inc.'s Revenue Breakdown

While precise revenue breakdown percentages for the fiscal year 2024 are not available in the provided search results, we can discuss the general revenue streams based on typical banking operations.

Territorial Bancorp Inc.'s Business Economics

Territorial Bancorp Inc.'s business economics are influenced by several factors:

• Interest Rate Spread: The difference between the interest earned on loans and the interest paid on deposits is a critical driver of profitability. Higher spreads generally lead to better earnings.
• Loan Portfolio Composition: The types of loans (e.g., residential mortgages, commercial loans) and their respective interest rates affect overall revenue.
• Operating Efficiency: Managing operational costs effectively can improve the bottom line.
• Asset Quality: Maintaining a high-quality loan portfolio with low delinquency rates is essential for sustainable profitability.

Territorial Bancorp Inc.'s Financial Performance

Territorial Bancorp Inc.'s financial performance can be assessed through various metrics:

• Net Interest Margin (NIM): Measures the difference between interest income and interest expense as a percentage of average earning assets. A higher NIM indicates better profitability from lending activities.
• Return on Assets (ROA): Indicates how efficiently a company is using its assets to generate earnings.
• Return on Equity (ROE): Measures how effectively a company is using shareholders' equity to generate profits.
• Efficiency Ratio: Measures operating expenses as a percentage of revenue; a lower ratio indicates better efficiency.
• Earnings per Share (EPS): Shows the company's profitability on a per-share basis.

To gain more insights into the company's mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Territorial Bancorp Inc. (TBNK).

Territorial Bancorp Inc. (TBNK) Market Position & Future Outlook

Territorial Bancorp Inc. faces a changing market with both opportunities for growth and potential challenges that could impact its future performance. To gain deeper insights into the investors and their motivations, see: Exploring Territorial Bancorp Inc. (TBNK) Investor Profile: Who’s Buying and Why?

Competitive Landscape

The following table provides an overview of Territorial Bancorp's primary competitors, along with their market share and key competitive advantages.

Opportunities & Challenges

The subsequent table elucidates the opportunities and risks confronting Territorial Bancorp.

Industry Position

Territorial Bancorp Inc. holds a solid position within the Hawaiian banking industry, leveraging its community ties and customer-focused approach. To maintain and strengthen its standing, Territorial Bancorp Inc. must:

• Continue to adapt to the evolving technological landscape by investing in digital banking solutions.
• Focus on providing personalized service and building strong customer relationships.
• Carefully manage risk and maintain strong asset quality.