Territorial Bancorp Inc (TBNK) has disclosed a new risk, in the Debt & Financing category.
Territorial Bancorp Inc. faces a significant business risk as it navigates interest rate hedging strategies in 2024. While aiming to mitigate the impact of volatile interest rates on its loan portfolios and liabilities, there is no guarantee that these hedges will effectively shield the company from financial loss. In fact, these activities may inadvertently result in losses, particularly if anticipated interest rate shifts do not materialize. Furthermore, mismatches in hedge durations, counterparty defaults, credit downgrades, and requisite mark-to-market adjustments pose additional threats to the company’s financial stability and equity value.
The average TBNK stock price target is $9.00, implying 9.49% upside potential.
To learn more about Territorial Bancorp Inc’s risk factors, click here.
