Territorial Mutual Holding Co., the parent company of Territorial Savings Bank, is planning to go public in the first quarter of next year as Territorial Bancorp Inc.

The company will issue up to 12.6 million shares of common stock on the Nasdaq Global Select Market—a segment of the Nasdaq Global Market with high initial listing standards—under the symbol “;TBNK,”; according to a Securities and Exchange Commission Filing dated Friday.

It would be the first Hawaii company to go public since Kapolei-based alternative energy firm Hoku Scientific Inc. in August 2005.

“;This transaction will give our depositors the opportunity to share in the ownership of our institution and provide us more flexibility for growth opportunities,”; Allan Kitagawa, chairman and chief executive, said in a statement. “;Territorial Savings Bank remains strong ... has no need to participate in any of the new capital purchase programs being offered by the U.S. Treasury.”;

The bank will be staffed by the same staff, and business will continue without disruption, Kitagawa said.

Walter Ida, senior vice president, declined to comment further.

All shares of common stock are being offered at $10 a share, expected to raise up to $125.6 million. The company must sell a minimum of 8.1 million shares, raising $80.8 million, to complete the offering.

The company is offering up to 10.9 million shares of common stock initially, but may sell up to 12.6 million shares because of demand or changes in market conditions without resoliciting subscribers.

Eligible depositors with aggregate deposit account balances of at least $50 as of Sept. 30, 2007, get first priority in the initial subscription stock offering, followed by Territorial Savings Bank and Territorial Bancorp's tax-qualified plans, including the employee stock ownership plan, worth $10.1 million. The company has 256 employees.

The company also may offer shares of common stock not purchased in the subscription offering or an initial community offering through a syndicated community offering managed by London-based Keefe, Bruyette & Woods, Inc.

If the maximum amount—$122.4 million after fees—is raised, $61.2 million, or half of the net proceeds, will be invested in Territorial Savings; $27.1 million, or 22.2 percent, will be retained by the bank; $24 million, or 19.6 percent, will be used to redeem trust-preferred securities; and $10.1 million, or 8.2 percent, will be loaned to the company's employee stock ownership plan to fund its purchase of shares.

As of Sept. 30, 2008, Territorial Savings Bank had a securities portfolio of $521.8 million, or 43.3 percent of assets; $419.5 million of that was mortgage-backed securities issued by Fannie Mae or Freddie Mac; $95.2 million was collateralized mortgage obligations issued by government agencies or government-sponsored enterprises, and $7 million was trust-preferred securities.

None of the underlying collateral consisted of subprime or Alt-A loans. The bank held no stock in Fannie Mae or Freddie Mac.

During the nine months ended Sept. 30, the securities portfolio decreased $16.2 million, or 3 percent, as the company used excess cash to fund loan originations instead of purchasing securities. The decrease included the sale of the $10.5 million in municipal bonds it held as of Dec. 31.

Territorial Savings, which is headquartered in Honolulu and has 24 branches in Hawaii, had total assets of $1.2 billion, total loans of $629.6 million, total deposits of $910.3 million and equity of $99.1 million as of Sept. 30. It was founded in 1921.