Territorial Bancorp Inc. said the outstanding balances in its residential-dominated loan portfolio are “well-secured” by those properties’ values as the COVID-19 pandemic wreaks havoc on the state’s economy.

The parent of the state’s fifth-largest bank updated its situation with the coronavirus today while reporting that its first-quarter net income fell 31.4% to $4.5 million primarily due to a one-time $1.98 million gain in the year-ago quarter from the sale of a trust preferred security. Territorial earned $6.5 million in the first quarter of 2019.

“Our total assets and deposits grew in the first quarter and we continued to emphasize maintaining strong asset quality, ” Territorial Chairman and CEO Allan Kitagawa said in a statement. “Our emphasis on asset quality and our strong capital position should allow the company to work through the challenges we face with the COVID-19 pandemic.”

Territorial Savings Bank said during the quarter it received forbearance inquiries on 183 loans, representing 3.52% of its total number of loans. The bank said it is currently analyzing the forbearance inquiries and may allow borrowers who are experiencing financial difficulties because of COVID-19 to defer up to six loan payments.

Of those 183 total inquiries, 170 of them consisted of one- to four-family residential properties. The bank said those residential mortgage loans, which represent 97% of the bank’s total loan portfolio balance, are well-secured as the ratio of the current loan balance to the current value of the property securing those mortgage loans averages 46.26%.

The company also received forbearance inquiries on four commercial mortgage loans, which represent 0.08% of the total number of loans; seven commercial loans, which represent 0.13% of the total number of loans; and two home equity lines of credit which represent 0.04% of the total number of loans.

Territorial set aside $217,000 for potential future loan losses compared with $5,000 in the year-earlier quarter.

The company, which has temporarily closed seven of its 29 branches due to reduced demand for banking services, said it has not seen an increase in loan delinquencies since the beginning of the year, significant changes in deposits, or significant drawdowns on any lines of credit. Territorial said it does not have any commercial loans to hotels, businesses in the transportation industry, restaurants or retail establishments.

Territorial also declared a quarterly dividend of 23 cents a share that will be paid on May 28 to stockholders of record as of May 14.