Territorial Bancorp Inc. (TBNK) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2009

Exhibit 99

PRESS RELEASE

FOR IMMEDIATE RELEASE

Territorial Bancorp Inc.

Announces Fourth Quarter and 2009 Year End Results

Honolulu, Hawaii, February 5, 2010 - Territorial Bancorp Inc., (NASDAQ: TBNK) (the “Company”), headquartered in Honolulu, Hawaii, the holding company parent of Territorial Savings Bank, announces net income of $3.0 million or $.27 per share, for the three months ended December 31, 2009, compared to $673,000 for the three months ended December 31, 2008. For the year ended December 31, 2009, the Company earned $8.7 million, or $.77 per share, compared to $7.2 million for the year ended December 31, 2008.

For the three months ended December 31, 2009 and 2008, net interest income after provision for loan losses was $11.1 million and $9.5 million, respectively. The increase in net interest income is primarily due to a decrease in interest paid on deposits and interest expense on subordinated debentures and other borrowings. The Company paid off $24.7 million of subordinated debt in the third quarter of 2009. Total interest and dividend income remained virtually the same at $15.5 million for the three months ended December 31, 2009 and the three months ended December 31, 2008. However, total interest expense decreased to $4.4 million for the three months ended December 31, 2009 compared to $5.9 million for the three months ended December 31, 2008, again due to the reduced amount of interest paid on deposits and on subordinated debentures and other borrowings. Provision for loan losses decreased to $86,000 for the three months ended December 31, 2009 compared to $158,000 for the three months ended December 31, 2008. Non-interest income was $1.3 million for the three months ended December 31, 2009 compared to a loss of $1.4 million for the three months ended December 31, 2008. For the three months ended December 31, 2008, a loss of $2.5 million resulted from an other-than-temporary impairment to the carrying value of trust preferred securities in accordance with accounting pronouncements existing at that time. Non-interest expense increased to $7.7 million for the three months ended December 31, 2009 as compared to $7.1 million for the three months ended December 31, 2008. The increase in non-interest expense was primarily due to higher compensation and employee benefit expenses.

For the year ended December 31, 2009, net interest income after provision for loan losses was $40.3 million compared to $35.8 million for the year ended December 31, 2008. Total interest and dividend income increased to $61.5 million for the year ended December 31, 2009 from $61.2 million for the year ended December 31, 2008. Total interest expense decreased to $20.0 million for the year ended December 31, 2009 from