Territorial Savings Bank Goes to New Territory

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Territorial Savings Bank will be converted to a stock organization in order to raise additional capital as support for its internal growth through establishment of new branches and lending. They are expecting the initial public offering to be a huge success.

Territorial Savings Bank is an 88-year-old company reorganized in 2002 to be a mutual holding company, and in 2003 surpassed $1 billion assets.

The company will trade under the name of Territorial Bancorp Inc. and the TBNK ticker symbol on Nasdaq. It’s conversion to become a stock organization is predicted to raise $78.6 million - $122.3 million when it starts to issue 7.9 million – 12.2 million depositor shares. In fact, depositors raised the price to $10 per share just to have the right to be a part of the IPO (initial public offering).

Despite uncertain economic climate for a lot of financial institutions, Brett Rabatin, banking analyst, said that he “expects the stock offering of Territorial to be well-received. Although this market is not the best for an IPO, the bank is unique compared to other mutual holding companies. Also, from the perspective of a residential loan portfolio, it has a better market and operates with fewer banking-type competitors.” He further said that “things go up quite a bit in mutual conversion, so this could go up to $13 - $14 in a week’s time.”

Territorial has 24 branches and currently preparing to open the 25th in Kihei, Maui this quarter. In the offering, non-depositors were not allowed to participate because the bank’s own members already gave enough response. However, the shares will soon be open to anyone when it begins trading.

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Territorial Savings Bank Goes to New Territory

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