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Territorial Bancorp Inc. (TBNK)
NASDAQ:TBNK

Territorial Bancorp (TBNK) AI Stock Analysis

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Territorial Bancorp

(NASDAQ:TBNK)

47Neutral
Territorial Bancorp is currently facing several financial challenges, including declining revenue and profitability, and increased leverage, which significantly impacts its stock performance. Despite a stable equity ratio and positive operating cash flow, the technical indicators suggest bearish momentum, and the valuation metrics reflect current difficulties with a negative P/E ratio. The high dividend yield offers some investor appeal but may not be sustainable long-term if financial issues are not addressed.

Territorial Bancorp (TBNK) vs. S&P 500 (SPY)

Territorial Bancorp Business Overview & Revenue Model

Company DescriptionTerritorial Bancorp Inc. (TBNK) is a Hawaii-based holding company for Territorial Savings Bank, which is primarily engaged in providing financial services to individuals and businesses. Operating in the banking sector, the company offers a range of products and services including residential mortgage loans, commercial real estate loans, consumer loans, and savings and checking accounts. Territorial Bancorp is committed to serving the financial needs of its community, leveraging its local expertise and personalized customer service.
How the Company Makes MoneyTerritorial Bancorp makes money through interest income generated from its loan portfolio, which includes residential mortgage loans and commercial real estate loans. The company earns interest from borrowers who take out loans and pay it back over time, typically with interest. Additionally, the bank gathers funds through customer deposits, such as savings and checking accounts, which are used to fund loans and investments. The spread between the interest earned on loans and the interest paid on deposits is a significant source of revenue. Furthermore, the company may generate non-interest income from fees and service charges associated with account maintenance and other banking services. Territorial Bancorp's earnings are influenced by economic conditions, interest rates, and competition within the banking sector.

Territorial Bancorp Financial Statement Overview

Summary
Territorial Bancorp is facing financial challenges with declining revenue and profitability in the TTM period. The company's leverage has increased, posing potential risks. However, it maintains a stable equity ratio and positive operating cash flow, which could support future recovery efforts.
Income Statement
45
Neutral
Territorial Bancorp experienced a decline in revenue and net income over the TTM (Trailing-Twelve-Months) period. The gross profit margin was consistent, but the net profit margin was negative due to a net loss. The revenue growth rate was negative, indicating a decrease in revenue compared to the previous year. The EBIT margin was positive, showing some operational efficiency, but the negative EBITDA margin suggests challenges in covering operational costs.
Balance Sheet
60
Neutral
The company's balance sheet shows a stable equity ratio, suggesting a reasonable level of equity financing. However, the debt-to-equity ratio has increased, indicating higher leverage and potential risk. Return on equity has turned negative due to the net loss, highlighting profitability concerns.
Cash Flow
50
Neutral
Cash flow analysis reveals a decline in free cash flow, but the company still generates positive operating cash flow relative to the net income, despite being negative. Free cash flow to net income ratio is concerning due to the net loss, although the company has managed its capital expenditures efficiently.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
63.73M45.10M59.70M60.50M64.37M66.37M
Gross Profit
63.73M45.10M59.70M60.50M64.37M66.37M
EBIT
30.86M6.84M25.57M23.80M25.32M28.31M
EBITDA
-987.00K10.75M25.60M28.02M29.83M32.24M
Net Income Common Stockholders
-2.24M5.03M16.16M17.43M18.61M22.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
37.99M126.66M61.37M99.86M367.11M53.43M
Total Assets
2.06B2.24B2.17B2.13B2.11B2.09B
Total Debt
117.29M259.30M156.29M151.74M154.12M168.18M
Net Debt
93.63M132.64M115.74M51.88M-209.42M123.38M
Total Liabilities
1.83B1.99B1.91B1.87B1.86B1.84B
Stockholders Equity
238.84M251.09M256.55M256.32M248.71M243.89M
Cash FlowFree Cash Flow
-4.29M7.57M11.95M12.16M19.23M21.61M
Operating Cash Flow
-4.19M8.26M16.67M12.52M20.99M22.33M
Investing Cash Flow
69.01M16.87M-95.25M-283.01M298.28M-6.04M
Financing Cash Flow
-10.81M60.98M19.28M6.80M-533.00K-18.55M

Territorial Bancorp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.33
Price Trends
50DMA
8.84
Negative
100DMA
9.70
Negative
200DMA
9.40
Negative
Market Momentum
MACD
-0.19
Negative
RSI
44.03
Neutral
STOCH
15.19
Positive
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 below the 20-day moving average (MA) of 8.40, below the 50-day MA of 8.84, and below the 200-day MA of 9.40, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of 15.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBNK.

Territorial Bancorp Risk Analysis

Territorial Bancorp disclosed 47 risk factors in its most recent earnings report. Territorial Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Territorial Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$193.34M10.927.30%3.15%11.38%-6.14%
73
Outperform
$962.68M10.095.95%4.81%7.54%-2.82%
72
Outperform
$795.73M19.095.04%3.93%4.64%-28.68%
70
Outperform
$710.43M8.8814.38%3.24%19.24%-3.88%
64
Neutral
$257.92M13.285.47%4.49%12.23%119.35%
64
Neutral
$13.79B10.529.20%4.24%17.25%-7.60%
47
Neutral
$71.45M-1.72%0.49%4.69%-186.98%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TBNK
Territorial Bancorp
8.33
0.11
1.34%
ESSA
Essa Bancorp
19.18
1.91
11.06%
HFWA
Heritage Financial
23.20
5.15
28.53%
MBWM
Mercantile Bank
44.17
8.92
25.30%
OCFC
Oceanfirst Financial
16.81
2.27
15.61%
WSBF
Waterstone Financial
13.47
2.51
22.90%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.