Territorial Bancorp: Higher Interest Rates Might Squeeze Earnings

Dec. 03, 2021 12:52 PM ETTerritorial Bancorp Inc. (TBNK)13 Comments
Ryan Sawyer profile picture
Ryan Sawyer


  • TBNK's assets yield low long-term fixed rates while its liabilities yield variable rates.
  • If interest rates were to increase, TBNK's income could get squeezed.
  • Expected earnings yields are lackluster between 3.98% and 5.12%, with muted growth expectations.

Conflict Of Interest

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Introduction and Investment Thesis

Territorial Bancorp Inc. (NASDAQ:TBNK) faces several risks ahead due to anticipated increases in interest rates. In general, their loans and investment securities are currently at very low long-term fixed rates, while their liabilities

This article was written by

Ryan Sawyer profile picture
Ryan Sawyer has managed the equity portfolios of others since 2013. He is a Certified Public Accountant and a CFA Charterholder, and is the owner and portfolio manager of Sawyer Investment Management Company.Sawyer Investment Management Company specializes in the construction of equity portfolios, and is therefore an ideal resource for long-term investors. The firm goes through a rigorous process for selecting each and every holding in the portfolio. Rooted in the empirical research of academia, the portfolios are generally composed of stocks which exhibit value, momentum, and quality characteristics.

Disclosure: I/we have a beneficial long position in the shares of TBNK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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