Territorial Bancorp Inc. (TBNK) SEC Filing 10-K Annual Report for the fiscal year ending Saturday, December 31, 2022

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE

Contact: Walter Ida

(808) 946-1400

Territorial Bancorp Inc. Announces Fourth Quarter 2022 Results

Honolulu, Hawaii, January 26, 2023- Territorial Bancorp Inc. (NASDAQ: TBNK) (the ‘'Company”), headquartered in Honolulu, Hawaii, the holding company parent of Territorial Savings Bank, announced net income of $3.45 million, or $0.39 per diluted share, for the three months ended December 31, 2022.

The Company also announced that its Board of Directors approved a quarterly cash dividend of $0.23 per share. The dividend is expected to be paid on February 23, 2023 to stockholders of record as of February 9, 2023.

Allan Kitagawa, Chairman and Chief Executive Officer, said, “While 2022's, and likely 2023's, interest rate environment makes it challenging, we expect that our strong capital and solid asset quality will sustain us through this cycle.  We have been through many different interest rate cycles over the years and believe that our capital and asset quality positions will continue to be important to our constituencies.  For our shareholders, we are proud to have announced our twelfth repurchase program during the December quarter as well as paying a special dividend.  We will continue to look for areas to enhance shareholder value, such as our recent corporate headquarters move to less expensive space, as we move forward."

Interest Income

Net interest income decreased by $600,000 to $13.27 million for the three months ended December 31, 2022 from $13.87 million for the three months ended December 31, 2021. Total interest income was $16.22 million for the three months ended December 31, 2022 compared to $15.17 million for the three months ended December 31, 2021. The $1.06 million increase in total interest income was primarily due to a $1.20 million increase in interest earned on investment securities. The increase in interest income on investment securities resulted from a $109.64 million increase in the average securities balance together with a 34 basis point increase in the average securities yield. The increase in interest income on investment securities was partially offset by a $312,000 decrease in interest income on loans. The decrease in interest income on loans occurred because of a $7.33 million decrease in the average loan balance which occurred as loan repayments exceeded new loan originations. The decrease in the average loan portfolio balance was augmented by an eight basis point decrease in the average loan yield.