Territorial Bancorp (TBNK) 10-Q 9 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
Document and Entity Information
Entity Registrant Name	Territorial Bancorp Inc.
Entity Central Index Key	1,447,051
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		9,830,438
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 103,123	$ 61,273
Investment securities held to maturity, at amortized cost (fair value of $392,384 and $407,922 at March 31, 2017 and December 31, 2016, respectively)	391,988	407,656
Loans held for sale	1,752	1,601
Loans receivable, net	1,367,217	1,335,987
Federal Home Loan Bank stock, at cost	5,013	4,945
Federal Reserve Bank stock, at cost	3,103	3,095
Accrued interest receivable	4,766	4,732
Premises and equipment, net	4,843	4,327
Bank-owned life insurance	43,520	43,294
Income taxes receivable		122
Deferred income tax assets, net	7,537	7,905
Prepaid expenses and other assets	2,929	2,625
Total assets	1,935,791	1,877,562
Liabilities:
Deposits	1,548,906	1,493,200
Advances from the Federal Home Loan Bank	69,000	69,000
Securities sold under agreements to repurchase	55,000	55,000
Accounts payable and accrued expenses	23,419	23,258
Income taxes payable	3,328	1,616
Advance payments by borrowers for taxes and insurance	3,514	5,702
Total liabilities	1,703,167	1,647,776
Stockholders' Equity:
Preferred stock, $.01 par value; authorized 50,000,000 shares, no shares issued or outstanding
Common stock, $.01 par value; authorized 100,000,000 shares; issued and outstanding 9,805,248 and 9,778,974 shares at March 31, 2017 and December 31, 2016, respectively	98	98
Additional paid-in capital	72,149	71,914
Unearned ESOP shares	(5,750)	(5,872)
Retained earnings	171,441	168,962
Accumulated other comprehensive loss	(5,314)	(5,316)
Total stockholders' equity	232,624	229,786
Total liabilities and stockholders' equity	$ 1,935,791	$ 1,877,562

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Consolidated Balance Sheets
Investment securities held to maturity, fair value (in dollars)	$ 392,384	$ 407,922
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	100,000,000	100,000,000
Common stock, shares issued	9,805,248	9,778,974
Common stock, shares outstanding	9,805,248	9,778,974

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest income:
Loans	$ 13,513	$ 12,361
Investment securities	3,081	3,875
Other investments	187	144
Total interest income	16,781	16,380
Interest expense:
Deposits	1,651	1,408
Advances from the Federal Home Loan Bank	254	257
Securities sold under agreements to repurchase	216	218
Total interest expense	2,121	1,883
Net interest income	14,660	14,497
Provision for loan losses	71	28
Net interest income after provision for loan losses	14,589	14,469
Noninterest income:
Service fees on loan and deposit accounts	556	456
Income on bank-owned life insurance	226	247
Gain on sale of investment securities	95
Gain on sale of loans	63	61
Other	82	122
Total noninterest income	1,022	886
Noninterest expense:
Salaries and employee benefits	5,118	5,426
Occupancy	1,449	1,420
Equipment	866	906
Federal deposit insurance premiums	148	225
Other general and administrative expenses	1,126	1,082
Total noninterest expense	8,707	9,059
Income before income taxes	6,904	6,296
Income taxes	2,583	2,512
Net income	$ 4,321	$ 3,784
Basic earnings per share (in dollars per share)	$ 0.47	$ 0.42
Diluted earnings per share (in dollars per share)	0.46	0.41
Cash dividends paid per common share (in dollars per share)	$ 0.20	$ 0.18
Basic weighted-average shares outstanding (in shares)	9,215,142	9,034,919
Diluted weighted-average shares outstanding (in shares)	9,445,989	9,305,615

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Consolidated Statements of Comprehensive Income
Net income	$ 4,321	$ 3,784
Change in unfunded pension liability		(21)
Change in unrealized loss on securities	2	2
Change in noncredit related loss on trust preferred securities		2
Other comprehensive income (loss), net of tax	2	(17)
Comprehensive income	$ 4,323	$ 3,767

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Unearned ESOP Shares	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2015	$ 96	$ 70,118	$ (6,361)	$ 161,024	$ (5,236)	$ 219,641
Increase (Decrease) in Stockholders' Equity
Net income				3,784		3,784
Other comprehensive income (loss)					(17)	(17)
Cash dividends paid ($0.20 per share and $0.18 per share for the three months ended March 31, 2017 and March 31, 2016, respectively)				(1,645)		(1,645)
Share-based compensation		661				661
Allocation of ESOP shares (12,233 shares for the three months ended March 31, 2017 and March 31, 2016)		198	122			320
Exercise of options for common stock (54,976 shares and 16,270 shares for the three months ended March 31, 2017 and March 31, 2016, respectively)	1	282				283
Balance at Mar. 31, 2016	97	71,259	(6,239)	163,163	(5,253)	223,027
Balance at Dec. 31, 2016	98	71,914	(5,872)	168,962	(5,316)	229,786
Increase (Decrease) in Stockholders' Equity
Net income				4,321		4,321
Other comprehensive income (loss)					2	2
Cash dividends paid ($0.20 per share and $0.18 per share for the three months ended March 31, 2017 and March 31, 2016, respectively)				(1,842)		(1,842)
Share-based compensation		(38)				(38)
Allocation of ESOP shares (12,233 shares for the three months ended March 31, 2017 and March 31, 2016)		273	122			395
Repurchase of company common stock (28,702 shares for the three months ended March 31, 2017)	(1)	(954)				(955)
Exercise of options for common stock (54,976 shares and 16,270 shares for the three months ended March 31, 2017 and March 31, 2016, respectively)	1	954				955
Balance at Mar. 31, 2017	$ 98	$ 72,149	$ (5,750)	$ 171,441	$ (5,314)	$ 232,624

Consolidated Statements of Sto7

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Consolidated Statements of Stockholders' Equity, Share Data
Cash dividends paid (in dollars per share)	$ 0.20	$ 0.18
Common Stock
Consolidated Statements of Stockholders' Equity, Share Data
Allocation of ESOP shares, shares	12,233	12,233
Repurchase of company common stock, shares	28,702
Exercise of options for common stock, shares	54,976	16,270

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 4,321	$ 3,784
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	71	28
Depreciation and amortization	243	302
Deferred income tax expense	367	596
Amortization of fees, discounts, and premiums	(129)	(160)
Origination of loans held for sale	(8,098)	(10,242)
Proceeds from sales of loans held for sale	8,011	10,952
Gain on sale of loans, net	(63)	(61)
Gain on sale of investment securities held to maturity	(95)
ESOP expense	395	320
Share-based compensation expense	(38)	661
Increase in accrued interest receivable	(34)	(119)
Net increase in bank-owned life insurance	(226)	(247)
Net increase in prepaid expenses and other assets	(304)	(82)
Net increase (decrease) in accounts payable and accrued expenses	161	(1,902)
Net decrease in advance payments by borrowers for taxes and insurance	(2,188)	(2,103)
Net (increase) decrease in income taxes receivable	122	(1,311)
Net increase (decrease) in income taxes payable	1,712	(290)
Net cash from operating activities	4,228	126
Cash flows from investing activities:
Purchases of investment securities held to maturity		(1,323)
Principal repayments on investment securities held to maturity	14,162	14,107
Proceeds from sale of investment securities held to maturity	1,589
Loan originations, net of principal repayments on loans receivable	(31,158)	(25,108)
Purchases of Federal Home Loan Bank stock	(68)	(155)
Purchases of Federal Reserve Bank stock	(8)	(20)
Purchases of premises and equipment	(759)	(18)
Net cash from investing activities	(16,242)	(12,517)
Cash flows from financing activities:
Net increase in deposits	55,706	29,822
Proceeds from exercise of stock options		283
Cash dividends paid	(1,842)	(1,645)
Net cash from financing activities	53,864	28,460
Net increase in cash and cash equivalents	41,850	16,069
Cash and cash equivalents at beginning of the period	61,273	65,919
Cash and cash equivalents at end of the period	103,123	81,988
Cash paid for:
Interest on deposits and borrowings	2,003	1,871
Income taxes	429	$ 3,517
Supplemental disclosure of noncash investing and financing activities:
Company stock acquired through net settlement transactions	$ 955

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies
Basis of Presentation	(1) Basis of Presentation The accompanying unaudited consolidated financial statements of Territorial Bancorp Inc. (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company’s consolidated financial statements and notes thereto filed as part of the Annual Report on Form 10-K for the year ended December 31, 2016. In the opinion of management, all adjustments necessary for a fair presentation have been made and consist only of normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. .

Organization

Organization	3 Months Ended
	Mar. 31, 2017
Organization
Organization	(2) Organization On July 10, 2009, Territorial Savings Bank completed a conversion from a mutual holding company to a stock holding company. As part of the conversion, Territorial Mutual Holding Company and Territorial Savings Group, Inc., the former holding companies for Territorial Savings Bank, ceased to exist as separate legal entities, and Territorial Bancorp Inc. became the holding company for Territorial Savings Bank. Upon completion of the conversion and reorganization, a special “liquidation account” was established in an amount equal to the total equity of Territorial Mutual Holding Company as of December 31, 2008. The liquidation account is to provide eligible account holders and supplemental eligible account holders who maintain their deposit accounts with Territorial Savings Bank after the conversion with a liquidation interest in the unlikely event of the complete liquidation of Territorial Savings Bank after the conversion. The balance of the liquidation account at December 31, 2016 was $12.2 million. On June 25, 2014, Territorial Savings Bank converted from a federal savings bank to a Hawaii state-chartered savings bank. On July 10, 2014, Territorial Savings Bank became a member of the Federal Reserve System.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	(3) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) amended the Revenue Recognition topic of the FASB Accounting Standards Codification (ASC). The amendment seeks to clarify the principles for recognizing revenue as well as to develop common revenue standards for U.S. generally accepted accounting principles and International Financial Reporting Standards. The amendment is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. In August 2015, the FASB deferred the effective date of the amendment by one year. However, entities may still choose to adopt the amendment as of the original effective date. The Company plans to adopt this amendment effective January 1, 2018. The Company does not expect the adoption of this amendment to have an effect on most items of income, including interest income and most categories of noninterest income. The Company is still studying the effects that this amendment will have on certain items of noninterest income, such as commissions earned from insurance and investment sales. However, the Company does not expect that there will be a material effect on its consolidated financial statements. In January 2016, the FASB amended the Financial Instruments – Overall topic of the FASB ASC. The amendment addresses several aspects of recognition, measurement, presentation and disclosure of financial instruments. Included are: (a) a requirement to measure equity investments at fair value, with changes in fair value recognized in net income, (b) a simplification of the impairment assessment of equity investments without readily determinable fair values, (c) the elimination of the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet, and (d) a requirement to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has performed a preliminary evaluation and does not expect the adoption of this amendment to have a material effect on its consolidated financial statements. In February 2016, the FASB amended the Leases topic of the FASB ASC. The primary effects of the amendment will be to recognize lease assets and lease liabilities on the balance sheet and to disclose certain information about leasing arrangements. The amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has several lease agreements for branch locations and equipment that will require recognition on the consolidated balance sheets upon adoption of the amendment. The Company will continue to evaluate the effects that the adoption of this amendment will have on its consolidated financial statements. In March 2016, the FASB amended the Compensation – Stock Compensation topic of the FASB ASC. The amendment includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. Some of the key provisions of the amendment require companies to record all excess tax benefits and tax deficiencies as income tax benefit or expense in the income statement rather than as an adjustment to additional paid-in capital. In addition, the amendments requires that excess tax benefits should be reported as an operating activity on the statement of cash flows and increases the amount an employer can withhold for taxes for share-based compensation awards. The amendment is effective for annual periods beginning after December 15, 2016. The Company adopted this amendment effective January 1, 2017. The adoption of this amendment has resulted in increased volatility to income tax expense related to excess tax benefits and tax deficiencies for share-based compensation. The amount of tax benefits or deficiencies recognized in income tax expense depends on the number of options exercised and the difference in the stock prices at the exercise and grant dates. In the three months ended March 31, 2017, the Company recognized $208,000 of tax benefits related to the exercise of stock options. In June 2016, the FASB amended various sections of the FASB ASC related to the accounting for credit losses on financial instruments. The amendment changes the threshold for recognizing losses from a “probable” to an “expected” model. The new model is referred to as the current expected credit loss model and applies to loans, leases, held-to-maturity investments, loan commitments and financial guarantees. The amendment requires the measurement of all expected credit losses for financial assets as of the reporting date (including historical experience, current conditions and reasonable and supportable forecasts) and enhanced disclosures that will help financial statement users understand the estimates and judgments used in estimating credit losses and evaluating the credit quality of an organization’s portfolio. The amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company will apply the amendment’s provisions as a cumulative-effect adjustment to retained earnings at the beginning of the first period the amendment is effective. The Company is currently evaluating the effects that the adoption of this amendment will have on its consolidated financial statements by gathering the information that is necessary to make the calculations required by the amendment. This may result in increased credit losses on financial instruments recorded in the consolidated financial statements. In March 2017, the FASB amended the Compensation – Retirement Benefits topic of the FASB ASC. The amendment requires the service cost component of net benefit cost to be reported in the same line item as other compensation costs arising from employee services. It also requires the other components of net benefit cost to be reported in the income statement separately from the service cost component. The amendment is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company has performed a preliminary evaluation and does not expect the adoption of this amendment to have a material effect on its consolidated financial statements.

Cash and Cash Equivalents

Cash and Cash Equivalents	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents
Cash and Cash Equivalents	(4) Cash and Cash Equivalents The table below presents the balances of cash and cash equivalents: March 31, December 31, (Dollars in thousands) 2017 2016 Cash and due from banks $ 9,319 $ 9,043 Interest-earning deposits in other banks 93,804 52,230 Cash and cash equivalents $ 103,123 $ Interest-earning deposits in other banks consist primarily of deposits at the Federal Reserve Bank.

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2017
Investment Securities.
Investment Securities	(5) Investment Securities The amortized cost and fair values of investment securities are as follows: Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value March 31, 2017: Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 390,945 $ 6,891 $ (6,574) $ 391,262 Trust preferred securities 1,043 79 — 1,122 Total $ 391,988 $ 6,970 $ (6,574) $ 392,384 December 31, 2016: Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 406,498 $ 7,285 $ (7,024) $ 406,759 Trust preferred securities 1,158 5 — 1,163 Total $ 407,656 $ 7,290 $ (7,024) $ 407,922 The amortized cost and estimated fair value of investment securities at March 31, 2017 are shown below. Incorporated in the maturity schedule are mortgage-backed and trust preferred securities, which are allocated using the contractual maturity as a basis. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Estimated (Dollars in thousands) Cost Fair Value Held-to-maturity: Due within 5 years $ 18 $ 18 Due after 5 years through 10 years 49 49 Due after 10 years 391,921 392,317 Total $ 391,988 $ 392,384 Realized gains and losses and the proceeds from sales of securities held to maturity and trading are shown in the table below. All sales of securities were U.S. government-sponsored mortgage-backed securities. Three Months Ended March 31, (Dollars in thousands) 2017 2016 Proceeds from sales $ 1,589 $ — Gross gains 95 — Gross losses — — During the three months ended March 31, 2017, the Company received proceeds of $1.6 million from the sale of $1.5 million of held-to-maturity mortgage-backed securities, resulting in gross realized gains of $95,000. The Company did not sell any held-to-maturity mortgage-backed securities during the three months ended March 31, 2016. The sale of these mortgage-backed securities, for which the Company had already collected a substantial portion of the outstanding purchased principal (at least 85%), is in accordance with the Investments – Debt and Equity Securities topic of the FASB ASC and does not taint management’s assertion of intent to hold remaining securities in the held-to-maturity portfolio to maturity. Investment securities with amortized costs of $273.3 million and $239.9 million at March 31, 2017 and December 31, 2016, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and transaction clearing accounts. Provided below is a summary of investment securities which were in an unrealized loss position at March 31, 2017 and December 31, 2016. The Company does not intend to sell these securities until such time as the value recovers or the securities mature and it is not more likely than not that the Company will be required to sell the securities prior to recovery of value or the securities mature. Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Number of Unrealized Description of securities Fair Value Losses Fair Value Losses Securities Fair Value Losses (Dollars in thousands) March 31, 2017 Mortgage-backed securities $ 171,571 $ 5,239 $ 22,651 $ 1,335 48 $ 194,222 $ 6,574 December 31, 2016 Mortgage-backed securities $ 179,741 $ 5,599 $ 23,402 $ 1,425 50 $ 203,143 $ 7,024 Mortgage-Backed Securities. The unrealized losses on the Company’s investment in mortgage-backed securities were caused by increases in market interest rates subsequent to purchase. All of the mortgage-backed securities are guaranteed by Freddie Mac or Fannie Mae, which are U.S. government-sponsored enterprises, or Ginnie Mae, which is a U.S. government agency. Since the decline in market value is attributable to changes in interest rates and not credit quality, and the Company does not intend to sell these investments until maturity and it is not more likely than not that the Company will be required to sell such investments prior to recovery of its cost basis, the Company does not consider these investments to be other-than-temporarily impaired as of March 31, 2017 and December 31, 2016. Trust Preferred Securities . At March 31, 2017, the Company owned one trust preferred security, PreTSL XXIII. The trust preferred security represents an investment in a pool of debt obligations issued primarily by holding companies for Federal Deposit Insurance Corporation-insured financial institutions. This security is classified in the Company’s held-to-maturity investment portfolio. The trust preferred securities market is considered to be inactive as only six transactions have occurred over the past 63 months in the same tranche of securities that we own and no new issues of pooled trust preferred securities have occurred since 2007. We used a discounted cash flow model to determine whether this security is other-than-temporarily impaired. The assumptions used in preparing the discounted cash flow model include the following: estimated discount rates, estimated deferral and default rates on collateral, and estimated cash flows. Based on the Company’s review, the Company’s investment in PreTSL XXIII did not incur additional impairment during the three months ended March 31, 2017. PreTSL XXIII has an amortized cost and a remaining cost basis of $1.0 million at March 31, 2017 and there is no accumulated other comprehensive loss related to noncredit factors. It is reasonably possible that the fair value of the trust preferred security could decline in the near term if the overall economy and the financial condition of some of the issuers deteriorate further and the liquidity of this security remains low. As a result, there is a risk that the Company’s remaining cost basis of $1.0 million on the trust preferred security could be credit-related other-than-temporarily impaired in the near term. The impairment, if any, could be material to the Company’s consolidated statements of income. The table below provides a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold: Three Months Ended March 31, (Dollars in thousands) 2017 2016 Balance at the beginning of the period $ 2,403 $ 2,403 Credit losses on debt securities for which other-than-temporary impairment was not previously recognized — — Credit losses on debt securities which were sold — — Balance at the end of the period $ 2,403 $ 2,403 The table below shows the components of accumulated other comprehensive loss, net of taxes, resulting from other-than-temporarily impaired securities: March 31, (Dollars in thousands) 2017 2016 Noncredit losses on other-than-temporarily impaired securities, net of taxes $ — $ 145

Loans Receivable and Allowance

Loans Receivable and Allowance for Loan Losses	3 Months Ended
	Mar. 31, 2017
Loans Receivable and Allowance for Loan Losses
Loans Receivable and Allowance for Loan Losses	(6) Loans Receivable and Allowance for Loan Losses The components of loans receivable are as follows: March 31, December 31, (Dollars in thousands) 2017 2016 Real estate loans: First mortgages: One- to four-family residential $ 1,319,590 $ 1,289,364 Multi-family residential 9,471 9,551 Construction, commercial and other 23,915 23,346 Home equity loans and lines of credit 14,668 14,805 Total real estate loans 1,367,644 1,337,066 Other loans: Loans on deposit accounts 246 204 Consumer and other loans 5,004 4,360 Total other loans 5,250 4,564 Less: Net unearned fees and discounts (3,137) (3,191) Allowance for loan losses (2,540) (2,452) Total unearned fees, discounts and allowance for loan losses (5,677) (5,643) Loans receivable, net $ 1,367,217 $ 1,335,987 The table below presents the activity in the allowance for loan losses by portfolio segment: Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended March 31, 2017: Balance, beginning of period $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 Provision (reversal of allowance) for loan losses (11) 45 (1) 23 15 71 1,583 564 1 138 237 2,523 Charge-offs (11) — — (5) — (16) Recoveries 31 — — 2 — 33 Net recoveries (charge-offs) 20 — — (3) — 17 Balance, end of period $ 1,603 $ 564 $ 1 $ 135 $ 237 $ 2,540 Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended March 31, 2016: Balance, beginning of period $ 1,380 $ 517 $ 3 $ 72 $ 194 $ 2,166 Provision (reversal of allowance) for loan losses 18 (8) — 14 4 28 1,398 509 3 86 198 2,194 Charge-offs — — — (14) — (14) Recoveries — — — 3 — 3 Net charge-offs — — — (11) — (11) Balance, end of period $ 1,398 $ 509 $ 3 $ 75 $ 198 $ In 2016, the Company changed the look-back period that is used to calculate the historical loss rates from five to seven years. The look-back period was extended to seven years because the longer look-back period is considered to be more representative of an entire economic cycle. The seven year look-back period includes loan charge-offs and recoveries from the recession and the subsequent economic recovery. The change in the look-back period did not have a material effect on the allowance for loan losses. Management considers the allowance for loan losses at March 31, 2017 to be at an appropriate level to provide for probable losses that can be reasonably estimated based on general and specific conditions at that date. While the Company uses the best information it has available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the information used in making the evaluations. To the extent actual outcomes differ from the estimates, additional provisions for credit losses may be required that would reduce future earnings. In addition, as an integral part of their examination process, the Federal Reserve Board will periodically review the allowance for loan losses and may require the Company to increase the allowance based on their analysis of information available at the time of their examination. The table below presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method: Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals March 31, 2017: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,603 564 1 135 237 2,540 Total ending allowance balance $ 1,603 $ 564 $ 1 $ 135 $ 237 $ 2,540 Loans: Ending loan balance: Individually evaluated for impairment $ 4,491 $ — $ 181 $ — $ — $ 4,672 Collectively evaluated for impairment 1,321,510 23,821 14,493 5,261 — 1,365,085 Total ending loan balance $ 1,326,001 $ 23,821 $ 14,674 $ 5,261 $ — $ 1,369,757 December 31, 2016: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,594 519 2 115 222 2,452 Total ending allowance balance $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 Loans: Ending loan balance: Individually evaluated for impairment $ 5,587 $ — $ 156 $ 1 $ — $ 5,744 Collectively evaluated for impairment 1,290,209 23,256 14,656 4,574 — 1,332,695 Total ending loan balance $ 1,295,796 $ 23,256 $ 14,812 $ 4,575 $ — $ 1,338,439 The table below presents the balance of impaired loans individually evaluated for impairment by class of loans: Unpaid Recorded Principal (Dollars in thousands) Investment Balance March 31, 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,491 $ 5,323 Home equity loans and lines of credit 181 232 Total $ 4,672 $ 5,555 December 31, 2016: With no related allowance recorded: One- to four-family residential mortgages $ 5,587 $ 6,469 Home equity loans and lines of credit 156 204 Consumer and other 1 1 Total $ 5,744 $ 6,674 The table below presents the average recorded investment and interest income recognized on impaired loans by class of loans: For the Three Months Ended March 31, Average Interest Recorded Income (Dollars in thousands) Investment Recognized 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,525 $ 17 Home equity loans and lines of credit 183 — Total $ 4,708 $ 17 2016: With no related allowance recorded: One- to four-family residential mortgages $ 6,265 $ 20 Home equity loans and lines of credit 125 — Total $ 6,390 $ 20 There were no loans individually evaluated for impairment with a related allowance for loan loss as of March 31, 2017 or December 31, 2016. Loans individually evaluated for impairment do not have an allocated allowance for loan loss because they were written down to fair value at the time of impairment. The table below presents the aging of loans and accrual status by class of loans: Loans More Than 90 Days 30 - 59 60 - 89 90 Days or Past Due Days Past Days Past Greater Total Past Loans Not Total Nonaccrual and Still (Dollars in thousands) Due Due Past Due Due Past Due Loans Loans Accruing March 31, 2017: One- to four-family residential mortgages $ 314 $ — $ 845 $ 1,159 $ 1,315,391 $ 1,316,550 $ 3,311 $ — Multi-family residential mortgages — — — — 9,451 9,451 — — Construction, commercial and other mortgages — — — — 23,821 23,821 — — Home equity loans and lines of credit 38 — 77 115 14,559 14,674 181 — Loans on deposit accounts — — — — 246 246 — — Consumer and other 4 — — 4 5,011 5,015 — — Total $ 356 $ — $ 922 $ 1,278 $ 1,368,479 $ 1,369,757 $ 3,492 $ — December 31, 2016: One- to four-family residential mortgages $ 185 $ 133 $ 1,358 $ 1,676 $ 1,284,590 $ 1,286,266 $ 4,402 $ — Multi-family residential mortgages — — — — 9,530 9,530 — — Construction, commercial and other mortgages — — — — 23,256 23,256 — — Home equity loans and lines of credit 16 35 49 100 14,712 14,812 156 — Loans on deposit accounts — — — — 204 204 — — Consumer and other 3 — 1 4 4,367 4,371 1 — Total $ 204 $ 168 $ 1,408 $ 1,780 $ 1,336,659 $ 1,338,439 $ 4,559 $ — The Company primarily uses the aging of loans and accrual status to monitor the credit quality of its loan portfolio. When a mortgage loan becomes seriously delinquent (90 days or more contractually past due), it displays weaknesses that may result in a loss. As a loan becomes more delinquent, the likelihood of the borrower repaying the loan decreases and the loan becomes more collateral-dependent. A mortgage loan becomes collateral-dependent when the proceeds for repayment can be expected to come only from the sale or operation of the collateral and not from borrower repayments. Generally, appraisals are obtained after a loan becomes collateral-dependent or is four months delinquent. The carrying value of collateral-dependent loans is adjusted to the fair value of the collateral less selling costs. Any commercial real estate, commercial, construction or equity loan that has a loan balance in excess of a specified amount is also periodically reviewed to determine whether the loan exhibits any weaknesses and is performing in accordance with its contractual terms. The Company had 16 nonaccrual loans with a book value of $3.5 million at March 31, 2017 and 19 nonaccrual loans with a book value of $4.6 million as of December 31, 2016. The Company collected interest on nonaccrual loans of $38,000 and $57,000 during the three months ended December 31, 2017 and 2016, respectively, but due to regulatory requirements, the Company recorded the interest as a reduction of principal. The Company would have recognized additional interest income of $59,000 and $69,000 during the three months ended March 31, 2017 and 2016, had the loans been accruing interest. The Company did not have any loans more than 90 days past due and still accruing interest as of March 31, 2017 and December 31, 2016. There were no loans modified in a troubled debt restructuring during the three months ended March 31, 2017 or 2016. There were no new troubled debt restructurings within the past 12 months that subsequently defaulted. The Company had 11 troubled debt restructurings totaling $2.4 million as of March 31, 2017 that were considered to be impaired. This total included 10 one- to four-family residential mortgage loans totaling $2.3 million and one home equity loan for $104,000. Five of the loans, totaling $1.2 million, are performing in accordance with their restructured terms and accruing interest at March 31, 2017. Five of the loans, totaling $1.1 million, are performing in accordance with their restructured terms but not accruing interest at March 31, 2017. One of the loans, for $149,000, was more than 149 days delinquent and not accruing interest as of March 31, 2017 The Company had 13 troubled debt restructurings totaling $2.9 million as of December 31, 2016 that were considered to be impaired. This total included 12 one- to four-family residential mortgage loans totaling $2.8 million and one home equity loan for $107,000. Five of the loans, totaling $1.2 million, were performing in accordance with their restructured terms and accruing interest at December 31, 2016. Seven of the loans, totaling $1.6 million, were performing in accordance with their restructured terms but not accruing interest at December 31, 2016. One of the loans, for $149,000, was more than 149 days delinquent and not accruing interest as of December 31, 2016. Restructurings include deferrals of interest and/or principal payments and temporary or permanent reductions in interest rates due to the financial difficulties of the borrowers. At March 31, 2017, we had no commitments to lend any additional funds to these borrowers. The Company had no real estate owned as of March 31, 2017 or December 31, 2016. There were four one- to four-family residential mortgage loans totaling $702,000 in the process of foreclosure as of March 31, 2017 and December 31, 2016. Nearly all of our real estate loans are collateralized by real estate located in the State of Hawaii. Loan-to-value ratios on these real estate loans generally do not exceed 80% at the time of origination. During the three months ended March 31, 2017 and 2016, the Company sold $8.0 million and $10.9 million, respectively, of mortgage loans held for sale and recognized gains of $63,000 and $61,000, respectively. The Company had three loans held for sale totaling $1.8 million at March 31, 2017 and five loans held for sale totaling $1.6 million at December 31, 2016. The Company serviced loans for others of $39.6 million at March 31, 2017 and $41.5 million at December 31, 2016. Of these amounts, $2.0 million and $2.2 million relate to securitizations for which the Company continues to hold the related mortgage-backed securities at March 31, 2017 and December 31, 2016, respectively. The amount of contractually specified servicing fees earned for the three-month periods ended March 31, 2017 and 2016 was $28,000 and $34,000, respectively. The fees are reported in service fees on loan and deposit accounts in the consolidated statements of income.

Securities Sold Under Agreement

Securities Sold Under Agreements to Repurchase	3 Months Ended
	Mar. 31, 2017
Securities Sold Under Agreements to Repurchase
Securities Sold Under Agreements to Repurchase	(7) Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase are treated as financings and the obligations to repurchase the identical securities sold are reflected as a liability with the securities collateralizing the agreements classified as an asset. Securities sold under agreements to repurchase are summarized as follows: March 31, 2017 December 31, 2016 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ 25,000 1.46 % $ 25,000 1.46 % Over 1 year to 2 years 20,000 1.66 — — Over 2 years to 3 years 10,000 1.65 25,000 1.66 Over 3 years to 4 years — — 5,000 1.65 Total $ 55,000 1.57 % $ 55,000 1.57 % Below is a summary comparing the carrying value and fair value of securities pledged to secure repurchase agreements, the repurchase liability, and the amount at risk at March 31, 2017. The amount at risk is the greater of the carrying value or fair value over the repurchase liability and refers to the potential loss to the Company if the secured lender fails to return the security at the maturity date of the agreement. All the agreements to repurchase are with JP Morgan Securities and the securities pledged are mortgage-backed securities issued and guaranteed by U.S. government-sponsored enterprises. The repurchase liability cannot exceed 90% of the fair value of securities pledged. In the event of a decline in the fair value of securities pledged to less than the required amount due to market conditions or principal repayments, the Company is obligated to pledge additional securities or other suitable collateral to cure the deficiency. Weighted Carrying Fair Average Value of Value of Repurchase Amount Months to (Dollars in thousands) Securities Securities Liability at Risk Maturity Maturing: Over 90 days $ 60,546 $ 60,283 $ 55,000 $ 5,546 17

Offsetting of Financial Liabili

Offsetting of Financial Liabilities	3 Months Ended
	Mar. 31, 2017
Offsetting of Financial Liabilities
Offsetting of Financial Liabilities	(8) Offsetting of Financial Liabilities Securities sold under agreements to repurchase are subject to a right of offset in the event of default. See note 7, Securities Sold Under Agreements to Repurchase, for additional information. Net Amount of Gross Amount Not Offset in the Gross Amount Gross Amount Liabilities Balance Sheet of Recognized Offset in the Presented in the Financial Cash Collateral (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Pledged Net Amount March 31, 2017: Securities sold under agreements to repurchase $ 55,000 $ — $ 55,000 $ 55,000 $ — $ — December 31, 2016: Securities sold under agreements to repurchase $ 55,000 $ — $ 55,000 $ 55,000 $ — $ —

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Mar. 31, 2017
Employee Benefit Plans
Employee Benefit Plans	(9) Employee Benefit Plans The Company has a noncontributory defined benefit pension plan (Pension Plan) that covers most employees with at least one year of service. Effective December 31, 2008, under approved changes to the Pension Plan, there were no further accruals of benefits for any participants and benefits will not increase with any additional years of service. Net periodic benefit cost, subsequent to December 31, 2008, has not been significant and is not disclosed in the table below. The Company also sponsors a Supplemental Employee Retirement Plan (SERP), a noncontributory supplemental retirement benefit plan, which covers certain current and former employees of the Company for amounts in addition to those provided under the Pension Plan. The components of net periodic benefit cost were as follows: SERP Three Months Ended March 31, (Dollars in thousands) 2017 2016 Net periodic benefit cost for the period: Service cost $ 10 $ 14 Interest cost 35 33 Expected return on plan assets — — Amortization of prior service cost — — Recognized actuarial loss — — Recognized curtailment loss — — Net periodic benefit cost $ 45 $ 47

Employee Stock Ownership Plan

Employee Stock Ownership Plan	3 Months Ended
	Mar. 31, 2017
Employee Stock Ownership Plan
Employee Stock Ownership Plan
Employee Stock Ownership Plan	(10) Employee Stock Ownership Plan Effective January 1, 2009, Territorial Savings Bank adopted an Employee Stock Ownership Plan (ESOP) for eligible employees. The ESOP borrowed $9.8 million from the Company and used those funds to acquire 978,650 shares, or 8%, of the total number of shares issued by the Company in its initial public offering. The shares were acquired at a price of $10.00 per share. The loan is secured by the shares purchased with the loan proceeds and will be repaid by the ESOP over the 20-year term of the loan with funds from Territorial Savings Bank’s contributions to the ESOP and dividends payable on the shares. The interest rate on the ESOP loan is an adjustable rate equal to the prime rate, as published in The Wall Street Journal. The interest rate adjusts annually and will be the prime rate on the first business day of the calendar year. Shares purchased by the ESOP are held by a trustee in an unallocated suspense account, and shares are released annually from the suspense account on a pro-rata basis as principal and interest payments are made by the ESOP to the Company. The trustee allocates the shares released among participants on the basis of each participant’s proportional share of compensation relative to all participants. As shares are committed to be released from the suspense account, Territorial Savings Bank reports compensation expense based on the average fair value of shares released with a corresponding credit to stockholders’ equity. The shares committed to be released are considered outstanding for earnings per share computations. Compensation expense recognized for the three months ended March 31, 2017 and 2016 amounted to $321,000 and $261,000, respectively. Shares held by the ESOP trust were as follows: March 31, December 31, 2017 2016 Allocated shares 385,230 372,997 Unearned shares 574,960 587,193 Total ESOP shares 960,190 960,190 Fair value of unearned shares, in thousands $ 17,922 $ 19,283 The ESOP restoration plan is a nonqualified plan that provides supplemental benefits to certain executives who are prevented from receiving the full benefits contemplated by the ESOP’s benefit formula. The supplemental cash payments consist of payments representing shares that cannot be allocated to the participants under the ESOP due to IRS limitations imposed on tax-qualified plans. We accrue for these benefits over the period during which employees provide services to earn these benefits. For the three months ended March 31, 2017 and 2016 we accrued $117,000 and $77,000, respectively, for the ESOP restoration plan.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2017
2010 Equity Incentive Plan
Share-Based Compensation
Share-Based Compensation	(11) Share-Based Compensation On August 19, 2010, Territorial Bancorp Inc. adopted the 2010 Equity Incentive Plan, which provides for awards of stock options and restricted stock to key officers and outside directors. In accordance with the Compensation – Stock Compensation topic of the FASB ASC, the cost of the 2010 Equity Incentive Plan is based on the fair value of the awards on the grant date. The fair value of restricted stock is based on the closing price of the Company’s stock on the grant date. The fair value of stock options is estimated using a Black-Scholes option pricing model using assumptions for dividend yield, stock price volatility, risk-free interest rate and option term. These assumptions are based on our judgments regarding future events, are subjective in nature, and cannot be determined with precision. The cost of the awards will be recognized on a straight-line basis over the three, five- or six-year vesting period during which participants are required to provide services in exchange for the awards. The Company recognized compensation expense, measured as the fair value of the share-based award on the date of grant, on a straight-line basis over the vesting period. Share-based compensation is recorded in the statement of income as a component of salaries and employee benefits with a corresponding increase in shareholders’ equity. The table below presents information on compensation expense and the related tax benefit for all share-based awards: For the Three Months Ended March 31, (In thousands) 2017 2016 Compensation expense $ 9 $ 661 Income tax benefit 4 266 Shares of our common stock issued under the 2010 Equity Incentive Plan shall be authorized but unissued shares. The maximum number of shares that will be awarded under the plan will be 1,862,637 shares. Stock Options The table below presents the stock option activity for the three months ended March 31, 2017 and 2016: Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2016 706,430 $ 17.43 3.70 $ 10,884 Granted — — — — Exercised 54,976 17.36 — 874 Forfeited — — — — Expired — — — — Options outstanding at March 31, 2017 651,454 $ 17.44 3.46 $ 8,945 Options outstanding at December 31, 2015 832,300 $ 17.42 4.70 $ 8,588 Granted — — — — Exercised 16,270 17.36 — 140 Forfeited — — — — Expired — — — — Options outstanding at March 31, 2016 816,030 $ 17.42 4.45 $ 7,048 Options vested and exercisable at March 31, 2017 $ $ 8,933 There were no options that vested in the three months ended March 31, 2017 or 2016. The following summarizes certain stock option activity of the Company: For the Three Months Ended March 31, (In thousands) 2017 2016 Intrinsic value of stock options exercised $ 874 $ 140 Proceeds received from stock options exercised 955 283 Tax benefits realized from stock options exercised 307 38 Total fair value of stock options that vested — — During the three months ended March 31, 2017, we issued 26,274 shares of common stock, net, in exchange for 54,976 stock options and 28,702 shares of common stock. Pursuant to the provisions of our equity incentive plan, optionees are permitted to use the value of our common stock they own in a stock swap transaction or net settlement to pay the exercise price of stock options. As of March 31, 2017, the Company had $7,000 of unrecognized compensation costs related to the stock option plan that will be amortized over a three-year vesting period. Restricted Stock Awards Restricted stock awards are accounted for as fixed grants using the fair value of the Company’s stock at the time of grant. Unvested restricted stock awards may not be disposed of or transferred during the vesting period. Restricted stock awards carry with them the right to receive dividends. The table below presents the restricted stock award activity: Weighted Average Grant Restricted Date Fair Stock Awards Value Nonvested at December 31, 2016 2,400 $ 26.23 Granted — — Vested — — Forfeited — — Nonvested at March 31, 2017 2,400 $ 26.23 Nonvested at December 31, 2015 114,542 $ 17.67 Granted — — Vested — — Forfeited — — Nonvested at March 31, 2016 114,542 $ 17.67 As of March 31, 2017, the Company had $44,000 of unrecognized compensation costs related to restricted stock awards that will be amortized over the three-year vesting period.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share
Earnings Per Share	(12) Earnings Per Share The table below presents the information used to compute basic and diluted earnings per share: Three Months Ended March 31, (Dollars in thousands, except per share data) 2017 2016 Net income $ 4,321 $ 3,784 Weighted-average number of shares used in: Basic earnings per share 9,215,142 9,034,919 Dilutive common stock equivalents: Stock options and restricted stock units 230,847 270,696 Diluted earnings per share 9,445,989 9,305,615 Net income per common share, basic $ 0.47 $ 0.42 Net income per common share, diluted $ 0.46 $ 0.41 We have two forms of our outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive nonforfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. The computed basic and diluted earnings per share presented are substantially equivalent using both the two-class and the treasury stock methods of calculating earnings per share.

Other Comprehensive Income and

Other Comprehensive Income and Loss	3 Months Ended
	Mar. 31, 2017
Other Comprehensive Income and Loss
Other Comprehensive Income and Loss	(13) Other Comprehensive Income and Loss The table below presents the changes in the components of accumulated other comprehensive income and loss, net of taxes: Noncredit Related Loss on Unfunded Trust Unrealized Pension Preferred Loss on (Dollars in thousands) Liability Securities Securities Total Three months ended March 31, 2017 Balances at beginning of period $ 5,284 $ — $ 32 $ 5,316 Other comprehensive income, net of taxes — — (2) (2) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive income — — (2) (2) Balances at end of period $ 5,284 $ — $ 30 $ 5,314 Three months ended March 31, 2016 Balances at beginning of period $ 5,044 $ 147 $ 45 $ 5,236 Other comprehensive loss (income), net of taxes 21 (2) (2) 17 Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss (income) 21 (2) (2) 17 Balances at end of period $ 5,065 $ 145 $ 43 $ 5,253 The table below presents the tax effect on each component of accumulated other comprehensive loss: Three Months Ended March 31, 2017 2016 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unfunded pension liability $ — $ — $ — $ — $ 21 $ 21 Noncredit related loss on trust preferred securities — — — (3) 1 (2) Unrealized loss on securities (3) 1 (2) (4) 2 (2) Total $ (3) $ 1 $ (2) $ (7) $ 24 $ 17

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(14) Fair Value of Financial Instruments In accordance with the Fair Value Measurements and Disclosures topic of the FASB ASC, the Company groups its financial assets and liabilities valued at fair value into three levels based on the markets in which the financial assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: · Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities traded in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. · Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. · Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect management’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques that require the use of significant judgment or estimation. In accordance with the Fair Value Measurements and Disclosures topic, the Company bases its fair values on the price that it would expect to receive if an asset were sold or the price that it would expect to pay to transfer a liability in an orderly transaction between market participants at the measurement date. Also as required, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when developing fair value measurements. The Company uses fair value measurements to determine fair value disclosures. Investment securities held for sale and derivatives are recorded at fair value on a recurring basis. From time to time, the Company may be required to record other financial assets at fair value on a nonrecurring basis, such as loans held for sale, impaired loans and investments, and mortgage servicing assets. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets. Cash and Cash Equivalents, Accrued Interest Receivable and Accrued Interest Payable. The carrying amount approximates fair value because of the short maturity of these instruments. Investment Securities. The estimated fair values of U.S. government-sponsored mortgage-backed securities are considered Level 2 inputs because the valuation for investment securities utilized pricing models that varied based on asset class and included trade, bid and other observable market information. The trust preferred securities represent investments in a pool of debt obligations issued primarily by holding companies for Federal Deposit Insurance Corporation-insured financial institutions. The trust preferred securities market is considered to be inactive as only six transactions have occurred over the past 63 months in the same tranche of securities we own and no new issues of pooled trust preferred securities have occurred since 2007. The fair value of our trust preferred securities was determined using a discounted cash flow model. Our model used a discount rate equal to three-month LIBOR plus 20.00%. The discounted cash flow analysis includes a review of all issuers within the pool. The fair value of the trust preferred securities are classified as Level 3 inputs because they are based on discounted cash flow models. FHLB Stock. FHLB stock, which is redeemable for cash at par value, is reported at its par value. FRB Stock. FRB stock, which is redeemable for cash at par value, is reported at its par value. Loans. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value of loans is not based on the concept of exit price. Loans Held for Sale. The fair value of loans held for sale is determined based on the prices quoted in the secondary market for similar loans. Deposits. The fair value of checking and Super NOW savings accounts, passbook accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated by discounting future cash flows using the rates currently offered for deposits with similar remaining maturities. Advances From the FHLB and Securities Sold Under Agreements to Repurchase. Fair value is estimated by discounting future cash flows using the rates currently offered to the Company for debt with similar remaining maturities. Interest Rate Contracts. The Company may enter into interest rate lock commitments with borrowers on loans intended to be sold. To manage interest rate risk on the lock commitments, the Company may also enter into forward loan sale commitments. The interest rate lock commitments and forward loan sale commitments are treated as derivatives and are recorded at their fair value determined by referring to prices quoted in the secondary market for similar contracts. Interest rate contracts that are classified as assets are included with prepaid expenses and other assets on the consolidated balance sheet while interest rate contracts that are classified as liabilities are included with accounts payable and accrued expenses. The estimated fair values of the Company’s financial instruments are as follows: Carrying Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 March 31, 2017 Assets Cash and cash equivalents $ 103,123 $ 103,123 $ 103,123 $ — $ — Investment securities held to maturity 391,988 392,384 — 391,262 1,122 Loans held for sale 1,752 1,803 — 1,803 — Loans receivable, net 1,367,217 1,379,331 — — 1,379,331 FHLB stock 5,013 5,013 — 5,013 — FRB stock 3,103 3,103 — 3,103 — Accrued interest receivable 4,766 4,766 4 1,066 3,696 Interest rate contracts 69 69 — 69 — Liabilities Deposits 1,548,906 1,548,586 — 1,270,113 278,473 Advances from the Federal Home Loan Bank 69,000 68,946 — 68,946 — Securities sold under agreements to repurchase 55,000 55,020 — 55,020 — Accrued interest payable 335 335 — 172 163 Interest rate contracts 69 69 — 69 — December 31, 2016 Assets Cash and cash equivalents $ 61,273 $ 61,273 $ 61,273 $ — $ — Investment securities held to maturity 407,656 407,922 — 406,759 1,163 Loans held for sale 1,601 1,601 — 1,601 — Loans receivable, net 1,335,987 1,352,137 — — 1,352,137 FHLB stock 4,945 4,945 — 4,945 — FRB stock 3,095 3,095 — 3,095 — Accrued interest receivable 4,732 4,732 10 1,064 3,658 Interest rate contracts 104 104 — 104 — Liabilities Deposits 1,493,200 1,493,094 — 1,257,157 235,937 Advances from the Federal Home Loan Bank 69,000 69,068 — 69,068 — Securities sold under agreements to repurchase 55,000 55,123 — 55,123 — Accrued interest payable 218 218 — 172 46 Interest rate contracts 104 104 — 104 — At March 31, 2017 and December 31, 2016, neither the commitment fees received on commitments to extend credit nor the fair value thereof was material to the consolidated financial statements of the Company. The table below presents the balance of assets and liabilities measured at fair value on a recurring basis: (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2017 Interest rate contracts — assets $ — $ 69 $ — $ 69 Interest rate contracts — liabilities — (69) — (69) December 31, 2016 Interest rate contracts — assets $ — $ 104 $ — $ 104 Interest rate contracts — liabilities — (104) — (104) The fair value of interest rate contracts was determined by referring to prices quoted in the secondary market for similar contracts. The table below presents the balance of assets measured at fair value on a nonrecurring basis as of March 31, 2017 and December 31, 2016 and the related gains and losses for the three months ended March 31, 2017 and the year ended December 31, 2016: Fair Value Total Gains (Dollars in thousands) Adjustment Date Level 1 Level 2 Level 3 Total (Losses) March 31, 2017 Impaired loans 3/31/2017 $ — $ 87 $ — $ 87 $ (11) December 31, 2016 Trust preferred securities 9/30/2016 $ — $ — $ 1,066 $ 1,066 $ 242 Mortgage servicing assets 6/30/2016 — — 341 341 (49) Impaired loans 8/31/2016 — 64 — 64 (33) Loans held for sale 12/31/2016 — 1,601 — 1,601 (1) The fair value of trust preferred securities is determined using a discounted cash flow model. The assumptions used in the discounted cash flow model are discussed above. Gains and losses on trust preferred securities that are credit related are included in net other-than-temporary impairment losses in the consolidated statements of income. Gains and losses on trust preferred securities that are not credit related are included in other comprehensive income in the consolidated statements of comprehensive income. Mortgage servicing assets are valued using a discounted cash flow model. Assumptions used in the model include mortgage prepayment speeds, discount rates and cost of servicing. Losses on mortgage servicing assets are included in service fees on loan and deposit accounts in the consolidated statements of income. The fair value of impaired loans is determined using the value of collateral less estimated selling costs. Gains and losses on impaired loans are included in the provision for loan losses in the consolidated statements of income. The fair value of loans held for sale is determined based on the prices quoted in the secondary market for similar loans. Losses on loans held for sale are included in gain on sale of loans in the consolidated statements of income. The table below presents the significant unobservable inputs for Level 3 nonrecurring fair value measurements: Unobservable (Dollars in thousands) Fair Value Valuation Technique Input Value December 31, 2016: Trust preferred securities $ 1,066 Discounted cash flow Discount rate Three-month LIBOR plus 20.00% Mortgage servicing assets 341 Discounted cash flow Discount rate 10.50% Prepayment speed (PSA) 158.4 - 203.5 Annual cost to service (per loan) $ 65

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events
Subsequent Events	(15) Subsequent Events On April 27, 2017, the Board of Directors of Territorial Bancorp Inc. declared a quarterly cash dividend of $0.20 per share of common stock. The dividend is expected to be paid on May 25, 2017 to stockholders of record as of May 11, 2017.

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents
Schedule of balances of cash and cash equivalents	March 31, December 31, (Dollars in thousands) 2017 2016 Cash and due from banks $ 9,319 $ 9,043 Interest-earning deposits in other banks 93,804 52,230 Cash and cash equivalents $ 103,123 $

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2017
Investment Securities.
Schedule of amortized cost and fair values of investment securities	Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value March 31, 2017: Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 390,945 $ 6,891 $ (6,574) $ 391,262 Trust preferred securities 1,043 79 — 1,122 Total $ 391,988 $ 6,970 $ (6,574) $ 392,384 December 31, 2016: Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 406,498 $ 7,285 $ (7,024) $ 406,759 Trust preferred securities 1,158 5 — 1,163 Total $ 407,656 $ 7,290 $ (7,024) $ 407,922
Schedule of amortized cost and estimated fair value of investment securities by maturity	Amortized Estimated (Dollars in thousands) Cost Fair Value Held-to-maturity: Due within 5 years $ 18 $ 18 Due after 5 years through 10 years 49 49 Due after 10 years 391,921 392,317 Total $ 391,988 $ 392,384
Schedule of realized gains and losses and proceeds from sales of securities held to maturity and trading	Three Months Ended March 31, (Dollars in thousands) 2017 2016 Proceeds from sales $ 1,589 $ — Gross gains 95 — Gross losses — —
Summary of investment securities in an unrealized loss position	Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Number of Unrealized Description of securities Fair Value Losses Fair Value Losses Securities Fair Value Losses (Dollars in thousands) March 31, 2017 Mortgage-backed securities $ 171,571 $ 5,239 $ 22,651 $ 1,335 48 $ 194,222 $ 6,574 December 31, 2016 Mortgage-backed securities $ 179,741 $ 5,599 $ 23,402 $ 1,425 50 $ 203,143 $ 7,024
Cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold	Three Months Ended March 31, (Dollars in thousands) 2017 2016 Balance at the beginning of the period $ 2,403 $ 2,403 Credit losses on debt securities for which other-than-temporary impairment was not previously recognized — — Credit losses on debt securities which were sold — — Balance at the end of the period $ 2,403 $ 2,403
Schedule of components of accumulated other comprehensive loss, net of taxes, resulting from other-than-temporarily impaired securities	March 31, (Dollars in thousands) 2017 2016 Noncredit losses on other-than-temporarily impaired securities, net of taxes $ — $ 145

Loans Receivable and Allowanc26

Loans Receivable and Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2017
Loans Receivable and Allowance for Loan Losses
Schedule of components of loans receivable	March 31, December 31, (Dollars in thousands) 2017 2016 Real estate loans: First mortgages: One- to four-family residential $ 1,319,590 $ 1,289,364 Multi-family residential 9,471 9,551 Construction, commercial and other 23,915 23,346 Home equity loans and lines of credit 14,668 14,805 Total real estate loans 1,367,644 1,337,066 Other loans: Loans on deposit accounts 246 204 Consumer and other loans 5,004 4,360 Total other loans 5,250 4,564 Less: Net unearned fees and discounts (3,137) (3,191) Allowance for loan losses (2,540) (2,452) Total unearned fees, discounts and allowance for loan losses (5,677) (5,643) Loans receivable, net $ 1,367,217 $ 1,335,987
Schedule of activity in allowance for loan losses by portfolio segment	Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended March 31, 2017: Balance, beginning of period $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 Provision (reversal of allowance) for loan losses (11) 45 (1) 23 15 71 1,583 564 1 138 237 2,523 Charge-offs (11) — — (5) — (16) Recoveries 31 — — 2 — 33 Net recoveries (charge-offs) 20 — — (3) — 17 Balance, end of period $ 1,603 $ 564 $ 1 $ 135 $ 237 $ 2,540 Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended March 31, 2016: Balance, beginning of period $ 1,380 $ 517 $ 3 $ 72 $ 194 $ 2,166 Provision (reversal of allowance) for loan losses 18 (8) — 14 4 28 1,398 509 3 86 198 2,194 Charge-offs — — — (14) — (14) Recoveries — — — 3 — 3 Net charge-offs — — — (11) — (11) Balance, end of period $ 1,398 $ 509 $ 3 $ 75 $ 198 $
Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method	Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals March 31, 2017: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,603 564 1 135 237 2,540 Total ending allowance balance $ 1,603 $ 564 $ 1 $ 135 $ 237 $ 2,540 Loans: Ending loan balance: Individually evaluated for impairment $ 4,491 $ — $ 181 $ — $ — $ 4,672 Collectively evaluated for impairment 1,321,510 23,821 14,493 5,261 — 1,365,085 Total ending loan balance $ 1,326,001 $ 23,821 $ 14,674 $ 5,261 $ — $ 1,369,757 December 31, 2016: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,594 519 2 115 222 2,452 Total ending allowance balance $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 Loans: Ending loan balance: Individually evaluated for impairment $ 5,587 $ — $ 156 $ 1 $ — $ 5,744 Collectively evaluated for impairment 1,290,209 23,256 14,656 4,574 — 1,332,695 Total ending loan balance $ 1,295,796 $ 23,256 $ 14,812 $ 4,575 $ — $ 1,338,439
Schedule of balance of impaired loans individually evaluated for impairment by class of loans	Unpaid Recorded Principal (Dollars in thousands) Investment Balance March 31, 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,491 $ 5,323 Home equity loans and lines of credit 181 232 Total $ 4,672 $ 5,555 December 31, 2016: With no related allowance recorded: One- to four-family residential mortgages $ 5,587 $ 6,469 Home equity loans and lines of credit 156 204 Consumer and other 1 1 Total $ 5,744 $ 6,674
Schedule of average recorded investment and interest income recognized on impaired loans by class of loans	For the Three Months Ended March 31, Average Interest Recorded Income (Dollars in thousands) Investment Recognized 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,525 $ 17 Home equity loans and lines of credit 183 — Total $ 4,708 $ 17 2016: With no related allowance recorded: One- to four-family residential mortgages $ 6,265 $ 20 Home equity loans and lines of credit 125 — Total $ 6,390 $ 20
Schedule of aging of loans and accrual status by class of loans	Loans More Than 90 Days 30 - 59 60 - 89 90 Days or Past Due Days Past Days Past Greater Total Past Loans Not Total Nonaccrual and Still (Dollars in thousands) Due Due Past Due Due Past Due Loans Loans Accruing March 31, 2017: One- to four-family residential mortgages $ 314 $ — $ 845 $ 1,159 $ 1,315,391 $ 1,316,550 $ 3,311 $ — Multi-family residential mortgages — — — — 9,451 9,451 — — Construction, commercial and other mortgages — — — — 23,821 23,821 — — Home equity loans and lines of credit 38 — 77 115 14,559 14,674 181 — Loans on deposit accounts — — — — 246 246 — — Consumer and other 4 — — 4 5,011 5,015 — — Total $ 356 $ — $ 922 $ 1,278 $ 1,368,479 $ 1,369,757 $ 3,492 $ — December 31, 2016: One- to four-family residential mortgages $ 185 $ 133 $ 1,358 $ 1,676 $ 1,284,590 $ 1,286,266 $ 4,402 $ — Multi-family residential mortgages — — — — 9,530 9,530 — — Construction, commercial and other mortgages — — — — 23,256 23,256 — — Home equity loans and lines of credit 16 35 49 100 14,712 14,812 156 — Loans on deposit accounts — — — — 204 204 — — Consumer and other 3 — 1 4 4,367 4,371 1 — Total $ 204 $ 168 $ 1,408 $ 1,780 $ 1,336,659 $ 1,338,439 $ 4,559 $ —

Securities Sold Under Agreeme27

Securities Sold Under Agreements to Repurchase (Tables)	3 Months Ended
	Mar. 31, 2017
Securities Sold Under Agreements to Repurchase
Summary of securities sold under agreements to repurchase	March 31, 2017 December 31, 2016 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ 25,000 1.46 % $ 25,000 1.46 % Over 1 year to 2 years 20,000 1.66 — — Over 2 years to 3 years 10,000 1.65 25,000 1.66 Over 3 years to 4 years — — 5,000 1.65 Total $ 55,000 1.57 % $ 55,000 1.57 %
Summary comparing carrying value and fair value of securities pledged to secure repurchase agreements, repurchase liability, and amount at risk	Weighted Carrying Fair Average Value of Value of Repurchase Amount Months to (Dollars in thousands) Securities Securities Liability at Risk Maturity Maturing: Over 90 days $ 60,546 $ 60,283 $ 55,000 $ 5,546 17

Offsetting of Financial Liabi28

Offsetting of Financial Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Offsetting of Financial Liabilities
Schedule of securities sold under agreements to repurchase subject to conditional right of offset	Net Amount of Gross Amount Not Offset in the Gross Amount Gross Amount Liabilities Balance Sheet of Recognized Offset in the Presented in the Financial Cash Collateral (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Pledged Net Amount March 31, 2017: Securities sold under agreements to repurchase $ 55,000 $ — $ 55,000 $ 55,000 $ — $ — December 31, 2016: Securities sold under agreements to repurchase $ 55,000 $ — $ 55,000 $ 55,000 $ — $ —

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2017
Employee Benefit Plans
Schedule of components of net periodic benefit cost	SERP Three Months Ended March 31, (Dollars in thousands) 2017 2016 Net periodic benefit cost for the period: Service cost $ 10 $ 14 Interest cost 35 33 Expected return on plan assets — — Amortization of prior service cost — — Recognized actuarial loss — — Recognized curtailment loss — — Net periodic benefit cost $ 45 $ 47

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	3 Months Ended
	Mar. 31, 2017
Employee Stock Ownership Plan
Schedule of shares held by ESOP trust	March 31, December 31, 2017 2016 Allocated shares 385,230 372,997 Unearned shares 574,960 587,193 Total ESOP shares 960,190 960,190 Fair value of unearned shares, in thousands $ 17,922 $ 19,283

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Share-Based Compensation
Schedule of compensation expense and related tax benefit for all share-based awards	For the Three Months Ended March 31, (In thousands) 2017 2016 Compensation expense $ 9 $ 661 Income tax benefit 4 266
Schedule of stock option activity	Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2016 706,430 $ 17.43 3.70 $ 10,884 Granted — — — — Exercised 54,976 17.36 — 874 Forfeited — — — — Expired — — — — Options outstanding at March 31, 2017 651,454 $ 17.44 3.46 $ 8,945 Options outstanding at December 31, 2015 832,300 $ 17.42 4.70 $ 8,588 Granted — — — — Exercised 16,270 17.36 — 140 Forfeited — — — — Expired — — — — Options outstanding at March 31, 2016 816,030 $ 17.42 4.45 $ 7,048 Options vested and exercisable at March 31, 2017 $ $ 8,933
Summary of certain stock option activity	For the Three Months Ended March 31, (In thousands) 2017 2016 Intrinsic value of stock options exercised $ 874 $ 140 Proceeds received from stock options exercised 955 283 Tax benefits realized from stock options exercised 307 38 Total fair value of stock options that vested — —
Schedule of restricted stock award activity	Weighted Average Grant Restricted Date Fair Stock Awards Value Nonvested at December 31, 2016 2,400 $ 26.23 Granted — — Vested — — Forfeited — — Nonvested at March 31, 2017 2,400 $ 26.23 Nonvested at December 31, 2015 114,542 $ 17.67 Granted — — Vested — — Forfeited — — Nonvested at March 31, 2016 114,542 $ 17.67

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share
Schedule of information used to compute basic and diluted earnings per share	Three Months Ended March 31, (Dollars in thousands, except per share data) 2017 2016 Net income $ 4,321 $ 3,784 Weighted-average number of shares used in: Basic earnings per share 9,215,142 9,034,919 Dilutive common stock equivalents: Stock options and restricted stock units 230,847 270,696 Diluted earnings per share 9,445,989 9,305,615 Net income per common share, basic $ 0.47 $ 0.42 Net income per common share, diluted $ 0.46 $ 0.41

Other Comprehensive Income an33

Other Comprehensive Income and Loss (Tables)	3 Months Ended
	Mar. 31, 2017
Other Comprehensive Income and Loss
Schedule of changes in components of accumulated other comprehensive income and loss, net of taxes	Noncredit Related Loss on Unfunded Trust Unrealized Pension Preferred Loss on (Dollars in thousands) Liability Securities Securities Total Three months ended March 31, 2017 Balances at beginning of period $ 5,284 $ — $ 32 $ 5,316 Other comprehensive income, net of taxes — — (2) (2) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive income — — (2) (2) Balances at end of period $ 5,284 $ — $ 30 $ 5,314 Three months ended March 31, 2016 Balances at beginning of period $ 5,044 $ 147 $ 45 $ 5,236 Other comprehensive loss (income), net of taxes 21 (2) (2) 17 Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss (income) 21 (2) (2) 17 Balances at end of period $ 5,065 $ 145 $ 43 $ 5,253
Schedule of tax effect on each component of accumulated other comprehensive loss	Three Months Ended March 31, 2017 2016 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unfunded pension liability $ — $ — $ — $ — $ 21 $ 21 Noncredit related loss on trust preferred securities — — — (3) 1 (2) Unrealized loss on securities (3) 1 (2) (4) 2 (2) Total $ (3) $ 1 $ (2) $ (7) $ 24 $ 17

Fair Value of Financial Instr34

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value of Financial Instruments
Schedule of estimated fair values of financial instruments	Carrying Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 March 31, 2017 Assets Cash and cash equivalents $ 103,123 $ 103,123 $ 103,123 $ — $ — Investment securities held to maturity 391,988 392,384 — 391,262 1,122 Loans held for sale 1,752 1,803 — 1,803 — Loans receivable, net 1,367,217 1,379,331 — — 1,379,331 FHLB stock 5,013 5,013 — 5,013 — FRB stock 3,103 3,103 — 3,103 — Accrued interest receivable 4,766 4,766 4 1,066 3,696 Interest rate contracts 69 69 — 69 — Liabilities Deposits 1,548,906 1,548,586 — 1,270,113 278,473 Advances from the Federal Home Loan Bank 69,000 68,946 — 68,946 — Securities sold under agreements to repurchase 55,000 55,020 — 55,020 — Accrued interest payable 335 335 — 172 163 Interest rate contracts 69 69 — 69 — December 31, 2016 Assets Cash and cash equivalents $ 61,273 $ 61,273 $ 61,273 $ — $ — Investment securities held to maturity 407,656 407,922 — 406,759 1,163 Loans held for sale 1,601 1,601 — 1,601 — Loans receivable, net 1,335,987 1,352,137 — — 1,352,137 FHLB stock 4,945 4,945 — 4,945 — FRB stock 3,095 3,095 — 3,095 — Accrued interest receivable 4,732 4,732 10 1,064 3,658 Interest rate contracts 104 104 — 104 — Liabilities Deposits 1,493,200 1,493,094 — 1,257,157 235,937 Advances from the Federal Home Loan Bank 69,000 69,068 — 69,068 — Securities sold under agreements to repurchase 55,000 55,123 — 55,123 — Accrued interest payable 218 218 — 172 46 Interest rate contracts 104 104 — 104 —
Schedule of assets and liabilities measured at fair value on a recurring basis	(Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2017 Interest rate contracts — assets $ — $ 69 $ — $ 69 Interest rate contracts — liabilities — (69) — (69) December 31, 2016 Interest rate contracts — assets $ — $ 104 $ — $ 104 Interest rate contracts — liabilities — (104) — (104)
Schedule of assets measured at fair value on a nonrecurring basis and related gains and losses	Fair Value Total Gains (Dollars in thousands) Adjustment Date Level 1 Level 2 Level 3 Total (Losses) March 31, 2017 Impaired loans 3/31/2017 $ — $ 87 $ — $ 87 $ (11) December 31, 2016 Trust preferred securities 9/30/2016 $ — $ — $ 1,066 $ 1,066 $ 242 Mortgage servicing assets 6/30/2016 — — 341 341 (49) Impaired loans 8/31/2016 — 64 — 64 (33) Loans held for sale 12/31/2016 — 1,601 — 1,601 (1)
Schedule of significant unobservable inputs for Level 3 nonrecurring fair value measurements	Unobservable (Dollars in thousands) Fair Value Valuation Technique Input Value December 31, 2016: Trust preferred securities $ 1,066 Discounted cash flow Discount rate Three-month LIBOR plus 20.00% Mortgage servicing assets 341 Discounted cash flow Discount rate 10.50% Prepayment speed (PSA) 158.4 - 203.5 Annual cost to service (per loan) $ 65

Organization (Details)

Organization (Details) $ in Millions	Dec. 31, 2016USD ($)
Organization
Liquidation account balance	$ 12.2

Recently Issued Accounting Pr36

Recently Issued Accounting Pronouncements (Details)	3 Months Ended
	Mar. 31, 2017USD ($)
Employee Stock Options | ASU 2016-09 Compensation - Stock Compensation
Recently Issued Accounting Pronouncements
Tax benefits realized from stock options exercised	$ 208,000

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Cash and Cash Equivalents
Cash and due from banks	$ 9,319	$ 9,043
Interest-earning deposits in other banks	93,804	52,230
Cash and cash equivalents	$ 103,123	$ 61,273	$ 81,988	$ 65,919

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Fair Values (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Held-to-maturity:
Amortized Cost	$ 391,988	$ 407,656
Gross Unrealized Gains	6,970	7,290
Gross Unrealized Losses	(6,574)	(7,024)
Estimated Fair Value	392,384	407,922
U.S. government-sponsored mortgage-backed securities
Held-to-maturity:
Amortized Cost	390,945	406,498
Gross Unrealized Gains	6,891	7,285
Gross Unrealized Losses	(6,574)	(7,024)
Estimated Fair Value	391,262	406,759
Trust preferred securities
Held-to-maturity:
Amortized Cost	1,043	1,158
Gross Unrealized Gains	79	5
Estimated Fair Value	$ 1,122	$ 1,163

Investment Securities - Maturit

Investment Securities - Maturity Schedule (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Held-to-maturity, Amortized Cost
Due within 5 years	$ 18
Due after 5 years through 10 years	49
Due after 10 years	391,921
Amortized Cost	391,988	$ 407,656
Held-to-maturity, Estimated Fair Value
Due within 5 years	18
Due after 5 years through 10 years	49
Due after 10 years	392,317
Estimated Fair Value	$ 392,384	$ 407,922

Investment Securities - Realize

Investment Securities - Realized Gains and Losses and Proceeds from Sales (Details) - U.S. government-sponsored mortgage-backed securities - Held to maturity and trading securities $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Realized gains and losses and the proceeds from sales of securities available for sale, held to maturity and trading
Proceeds from sales	$ 1,589
Gross gains	$ 95

Investment Securities - Proceed

Investment Securities - Proceeds from Sales and Realized Gains and Losses by Classification and Securities Pledged (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Sale of held-to-maturity debt securities
Proceeds from the sale of held-to-maturity debt securities	$ 1,589,000
Pledged investment securities
Investment securities pledged to secure public deposit, securities sold under agreement to repurchase and transaction clearing accounts	273,300,000		$ 239,900,000
U.S. government-sponsored mortgage-backed securities | Held-to-maturity debt securities
Sale of held-to-maturity debt securities
Proceeds from the sale of held-to-maturity debt securities	1,600,000
Carrying value of held-to-maturity debt securities sold	1,500,000
Gross realized gains	$ 95,000
U.S. government-sponsored mortgage-backed securities | Held-to-maturity debt securities | Minimum
Sale of held-to-maturity debt securities
Portion of outstanding purchased principal already collected	85.00%	85.00%

Investment Securities - Unreali

Investment Securities - Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands	Mar. 31, 2017USD ($)item	Dec. 31, 2016USD ($)item
Investment Securities
Less Than 12 Months Fair Value	$ 171,571	$ 179,741
Less Than 12 Months Unrealized Losses	5,239	5,599
12 Months or Longer Fair Value	22,651	23,402
12 Months or Longer Unrealized Losses	$ 1,335	$ 1,425
Total Number of Securities | item	48	50
Total Fair Value	$ 194,222	$ 203,143
Total Unrealized Losses	$ 6,574	$ 7,024

Investment Securities - Trust P

Investment Securities - Trust Preferred Securities (Details) $ in Millions	63 Months Ended	111 Months Ended
	Mar. 31, 2017USD ($)Transactionsecurity	Mar. 31, 2017USD ($)security
Investment Securities
Number of new security pools | security		0
Trust preferred securities
Investment Securities
Number of market transactions of the security | Transaction	6
Trust preferred securities | PreTSL XXIII
Investment Securities
Number of securities owned | security	1	1
Accumulated other comprehensive loss | $	$ 0	$ 0
Remaining cost basis | $	$ 1	$ 1

Investment Securities - Cumulat

Investment Securities - Cumulative Roll Forward of Credit Losses Recognized in Earnings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold
Balance at the beginning of the period	$ 2,403	$ 2,403
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	0	0
Balance at the end of the period	$ 2,403	2,403
Components of accumulated other comprehensive loss, net of taxes, resulting from other-than-temporarily impaired securities
Noncredit losses on other-than-temporarily impaired securities, net of taxes		$ 145

Loans Receivable and Allowanc45

Loans Receivable and Allowance for Loan Losses - Components (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Real estate loans:
Total real estate loans	$ 1,367,644	$ 1,337,066
Other loans:
Total other loans	5,250	4,564
Less: Net unearned fees and discounts	(3,137)	(3,191)
Less: Allowance for loan losses	(2,540)	(2,452)	$ (2,183)	$ (2,166)
Total unearned fees, discounts and allowance for loan losses	(5,677)	(5,643)
Loans receivable, net	1,367,217	1,335,987
One- to four-family residential
Real estate loans:
Total real estate loans	1,319,590	1,289,364
Multi-family residential
Real estate loans:
Total real estate loans	9,471	9,551
Construction, Commercial and Other Mortgage Loans
Real estate loans:
Total real estate loans	23,915	23,346
Other loans:
Less: Allowance for loan losses	(564)	(519)	(509)	(517)
Home Equity Loans and Lines of Credit
Real estate loans:
Total real estate loans	14,668	14,805
Other loans:
Less: Allowance for loan losses	(1)	(2)	$ (3)	$ (3)
Loans on deposit accounts
Other loans:
Total other loans	246	204
Consumer and other loans
Other loans:
Total other loans	$ 5,004	$ 4,360

Loans Receivable and Allowanc46

Loans Receivable and Allowance for Loan Losses - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended	30 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Jun. 30, 2016
Activity in allowance for loan losses
Balance, beginning of period	$ 2,452	$ 2,166
Provision (reversal of allowance) for loan losses	71	28
Allowance for loan losses on loans receivable after provision (reversal of allowance)	2,523	2,194
Charge-offs	(16)	(14)
Recoveries	33	3
Net recoveries (charge-offs)	17	(11)
Balance, end of period	2,540	2,183	$ 2,540
Look back period to calculate historical loss of each segment			7 years	5 years
Residential Mortgage
Activity in allowance for loan losses
Balance, beginning of period	1,594	1,380
Provision (reversal of allowance) for loan losses	(11)	18
Allowance for loan losses on loans receivable after provision (reversal of allowance)	1,583	1,398
Charge-offs	(11)
Recoveries	31
Net recoveries (charge-offs)	20
Balance, end of period	1,603	1,398	$ 1,603
Construction, Commercial and Other Mortgage Loans
Activity in allowance for loan losses
Balance, beginning of period	519	517
Provision (reversal of allowance) for loan losses	45	(8)
Allowance for loan losses on loans receivable after provision (reversal of allowance)	564	509
Balance, end of period	564	509	564
Home Equity Loans and Lines of Credit
Activity in allowance for loan losses
Balance, beginning of period	2	3
Provision (reversal of allowance) for loan losses	(1)
Allowance for loan losses on loans receivable after provision (reversal of allowance)	1	3
Balance, end of period	1	3	1
Consumer and Other
Activity in allowance for loan losses
Balance, beginning of period	115	72
Provision (reversal of allowance) for loan losses	23	14
Allowance for loan losses on loans receivable after provision (reversal of allowance)	138	86
Charge-offs	(5)	(14)
Recoveries	2	3
Net recoveries (charge-offs)	(3)	(11)
Balance, end of period	135	75	135
Unallocated
Activity in allowance for loan losses
Balance, beginning of period	222	194
Provision (reversal of allowance) for loan losses	15	4
Allowance for loan losses on loans receivable after provision (reversal of allowance)	237	198
Balance, end of period	$ 237	$ 198	$ 237

Loans Receivable and Allowanc47

Loans Receivable and Allowance for Loan Losses - Balance in Allowance for Loan Losses and Recorded Investment (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Allowance for loan losses:
Collectively evaluated for impairment	$ 2,540	$ 2,452
Total ending allowance balance	2,540	2,452	$ 2,183	$ 2,166
Loans:
Individually evaluated for impairment	4,672	5,744
Collectively evaluated for impairment	1,365,085	1,332,695
Total ending loan balance	1,369,757	1,338,439
Residential Mortgage
Allowance for loan losses:
Collectively evaluated for impairment	1,603	1,594
Total ending allowance balance	1,603	1,594	1,398	1,380
Loans:
Individually evaluated for impairment	4,491	5,587
Collectively evaluated for impairment	1,321,510	1,290,209
Total ending loan balance	1,326,001	1,295,796
Construction, Commercial and Other Mortgage Loans
Allowance for loan losses:
Collectively evaluated for impairment	564	519
Total ending allowance balance	564	519	509	517
Loans:
Collectively evaluated for impairment	23,821	23,256
Total ending loan balance	23,821	23,256
Home Equity Loans and Lines of Credit
Allowance for loan losses:
Collectively evaluated for impairment	1	2
Total ending allowance balance	1	2	3	3
Loans:
Individually evaluated for impairment	181	156
Collectively evaluated for impairment	14,493	14,656
Total ending loan balance	14,674	14,812
Consumer and Other
Allowance for loan losses:
Collectively evaluated for impairment	135	115
Total ending allowance balance	135	115	75	72
Loans:
Individually evaluated for impairment		1
Collectively evaluated for impairment	5,261	4,574
Total ending loan balance	5,261	4,575
Unallocated
Allowance for loan losses:
Collectively evaluated for impairment	237	222
Total ending allowance balance	$ 237	$ 222	$ 198	$ 194

Loans Receivable and Allowanc48

Loans Receivable and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Impaired loans
Average Recorded Investment	$ 4,708	$ 6,390
Interest Income Recognized	17	20
One- to four-family residential
Impaired loans
Average Recorded Investment	4,525	6,265
Interest Income Recognized	17	20
Home Equity Loans and Lines of Credit
Impaired loans
Average Recorded Investment	183	$ 125
Individually Evaluated for Impairment
Impaired loans
Recorded Investment	4,672		$ 5,744
Unpaid Principal Balance	5,555		6,674
Loans individually evaluated for impairment with a related allowance for loan loss	0		0
Individually Evaluated for Impairment | One- to four-family residential
Impaired loans
Recorded Investment	4,491		5,587
Unpaid Principal Balance	5,323		6,469
Individually Evaluated for Impairment | Home Equity Loans and Lines of Credit
Impaired loans
Recorded Investment	181		156
Unpaid Principal Balance	$ 232		204
Individually Evaluated for Impairment | Consumer and Other
Impaired loans
Recorded Investment			1
Unpaid Principal Balance			$ 1

Loans Receivable and Allowanc49

Loans Receivable and Allowance for Loan Losses - Aging of Loans and Accrual Status (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 1,278	$ 1,780
Loans Not Past Due	1,368,479	1,336,659
Total ending loan balance	1,369,757	1,338,439
Nonaccrual Loans	3,492	4,559
One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,159	1,676
Loans Not Past Due	1,315,391	1,284,590
Total ending loan balance	1,316,550	1,286,266
Nonaccrual Loans	3,311	4,402
Multi-family residential
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	9,451	9,530
Total ending loan balance	9,451	9,530
Construction, Commercial and Other Mortgage Loans
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	23,821	23,256
Total ending loan balance	23,821	23,256
Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	115	100
Loans Not Past Due	14,559	14,712
Total ending loan balance	14,674	14,812
Nonaccrual Loans	181	156
Loans on deposit accounts
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	246	204
Total ending loan balance	246	204
Consumer and other loans
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4	4
Loans Not Past Due	5,011	4,367
Total ending loan balance	5,015	4,371
Nonaccrual Loans		1
30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	356	204
30 - 59 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	314	185
30 - 59 Days Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	38	16
30 - 59 Days Past Due | Consumer and other loans
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4	3
60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		168
60 - 89 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due		133
60 - 89 Days Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due		35
90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	922	1,408
90 Days or Greater Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	845	1,358
90 Days or Greater Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 77	49
90 Days or Greater Past Due | Consumer and other loans
Financing Receivable, Recorded Investment, Past Due
Total Past Due		$ 1

Loans Receivable and Allowanc50

Loans Receivable and Allowance for Loan Losses - Delinquent and Nonaccrual Loans (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)loan	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Nonaccrual Loans	$ 3,492,000		$ 4,559,000
Mortgage Loans on Real Estate | Minimum
Accounts, Notes, Loans and Financing Receivable
Loan delinquency period that may result in loss	90 days
Loan delinquency period after which an appraisal is obtained of the underlying collateral	4 months
Non Accrual Loans
Accounts, Notes, Loans and Financing Receivable
Number of loans | loan	16		19
Nonaccrual Loans	$ 3,500,000		$ 4,600,000
Interest collected on nonaccrual loans recorded as a reduction of principal	38,000	$ 57,000
Non accrual loans, additional interest income that would have been recognized had the loans been accruing interest	$ 59,000	$ 69,000

Loans Receivable and Allowanc51

Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)loan	Mar. 31, 2016loan	Mar. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)loan
Troubled debt restructurings
Number of loans subsequently defaulted | loan			0
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	11		11	13
Loans modified by troubled debt restructurings considered impaired | $	$ 2,400,000		$ 2,400,000	$ 2,900,000
Real estate owned | $	$ 0		0	$ 0
Loans modified in troubled debt restructuring
Troubled debt restructurings
Number of Loans | loan	0	0
Additional disclosures
Commitments to lend additional funds to borrowers | $	$ 0		$ 0
Performing Financing Receivable | Accruing interest
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	5		5	5
Loans modified by troubled debt restructurings considered impaired | $	$ 1,200,000		$ 1,200,000	$ 1,200,000
Performing Financing Receivable | Non Accrual Loans
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	5		5	7
Loans modified by troubled debt restructurings considered impaired | $	$ 1,100,000		$ 1,100,000	$ 1,600,000
Nonperforming Financing Receivable | Non Accrual Loans | More than 149 days past due
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	1		1	1
Loans modified by troubled debt restructurings considered impaired | $	$ 149,000		$ 149,000	$ 149,000
One- to four-family residential
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	10		10	12
Loans modified by troubled debt restructurings considered impaired | $	$ 2,300,000		$ 2,300,000	$ 2,800,000
Mortgage loans in process of foreclosure, number of contracts | loan	4		4	4
Mortgage loans in process of foreclosure, total value | $	$ 702,000		$ 702,000	$ 702,000
Home Equity Loans and Lines of Credit
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	1		1	1
Loans modified by troubled debt restructurings considered impaired | $	$ 104,000		$ 104,000	$ 107,000

Loans Receivable and Allowanc52

Loans Receivable and Allowance for Loan Losses - Collateral, Sales, Serviced for Others, Directors and Executive Officers (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)loan	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Loans serviced for others	$ 39,600,000		$ 41,500,000
Loans serviced for others, securitization for which the company continues to hold the related mortgage-backed securities	2,000,000		$ 2,200,000
Loans serviced for others, amount of contractually specified servicing fees earned	$ 28,000	$ 34,000
Mortgage Loans on Real Estate | Maximum
Accounts, Notes, Loans and Financing Receivable
Loan to value ratio (as a percent)	80.00%
Residential Mortgage Loans Held For Sale
Accounts, Notes, Loans and Financing Receivable
Residential mortgage loans sold, loan amount	$ 8,000,000	10,900,000
Residential mortgage loans sold, recognized gains	$ 63,000	$ 61,000
Number of loans | loan	3		5
Residential mortgage loans held for sale	$ 1,800,000		$ 1,600,000

Securities Sold Under Agreeme53

Securities Sold Under Agreements to Repurchase - Summary of Repurchase Liability by Maturity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Securities sold under agreements to repurchase
Repurchase Liability	$ 55,000	$ 55,000
Repurchase liability maximum	90.00%
Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.57%	1.57%
1 year or less
Securities sold under agreements to repurchase
Repurchase Liability	$ 25,000	$ 25,000
1 year or less | Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.46%	1.46%
Over 1 year to 2 years
Securities sold under agreements to repurchase
Repurchase Liability	$ 20,000
Over 1 year to 2 years | Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.66%
Over 2 years to 3 years
Securities sold under agreements to repurchase
Repurchase Liability	$ 10,000	$ 25,000
Over 2 years to 3 years | Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.65%	1.66%
Over 3 years to 4 years
Securities sold under agreements to repurchase
Repurchase Liability		$ 5,000
Over 3 years to 4 years | Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)		1.65%

Securities Sold Under Agreeme54

Securities Sold Under Agreements to Repurchase - Summary of Securities Pledged (Details) - Maturing Over 90 days $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Securities sold under agreements to repurchase
Carrying Value of Securities	$ 60,546
Fair Value of Securities	60,283
Repurchase Liability	55,000
Amount at Risk	$ 5,546
Weighted Average Months to Maturity	17 months

Offsetting of Financial Liabi55

Offsetting of Financial Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Securities sold under agreements to repurchase
Gross Amount of Recognized Liabilities	$ 55,000	$ 55,000
Net Amount of Liabilities Presented in the Balance Sheet	55,000	55,000
Gross amount not offset in the balance sheet
Financial Instruments	$ 55,000	$ 55,000

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net periodic benefit cost for the year:
Service cost	$ 10	$ 14
Interest cost	35	33
Net periodic benefit cost	$ 45	$ 47
Pension Plan | Minimum
Net periodic benefit cost for the year:
Defined Benefit Plan Requisite Service Period	1 year

Employee Stock Ownership Plan -

Employee Stock Ownership Plan - Loan, Expense and Shares (Details) - USD ($)	Jul. 10, 2009	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Employee Stock Ownership Plan
ESOP expense		$ 395,000	$ 320,000
ESOP
Employee Stock Ownership Plan
Amount borrowed from employer	$ 9,800,000
Shares purchased	978,650
Percentage of shares issued in initial public offering	8.00%
Employee stock ownership plan, price per share of shares acquired in initial public offering (in dollars per share)	$ 10
Term of loan		20 years
ESOP expense		$ 321,000	$ 261,000
Allocated shares		385,230		372,997
Unearned shares		574,960		587,193
Total ESOP shares		960,190		960,190
Fair value of unearned shares, in thousands		$ 17,922,000		$ 19,283,000
ESOP | Prime rate
Employee Stock Ownership Plan
Variable interest rate		Wall Street Journal Prime Rate

Employee Stock Ownership Plan58

Employee Stock Ownership Plan - Nonqualified ESOP Restoration Plan (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
ESOP restoration | Certain executives
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits
Accrued benefits	$ 117,000	$ 77,000

Share-Based Compensation - Plan

Share-Based Compensation - Plan Provisions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-Based Compensation
Compensation expense	$ 9	$ 661
Income tax benefit	$ 4	$ 266
2010 Equity Incentive Plan
Share-Based Compensation
Number of shares authorized	1,862,637
2010 Equity Incentive Plan | Vesting period one
Share-Based Compensation
Period for recognition of award cost	3 years
Vesting period	3 years
2010 Equity Incentive Plan | Vesting period two
Share-Based Compensation
Period for recognition of award cost	5 years
Vesting period	5 years
2010 Equity Incentive Plan | Vesting period three
Share-Based Compensation
Period for recognition of award cost	6 years
Vesting period	6 years

Share-Based Compensation - Stoc

Share-Based Compensation - Stock Option Activity (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Common Stock
Stock option activity
Exercised (in shares)	54,976	16,270
Stock option activity
Shares of common stock issued in exchange for stock options and common shares	26,274
Shares of common stock exchanged with stock options	28,702
Stock Options
Stock option activity
Balance at beginning of period (in shares)	706,430	832,300	832,300
Exercised (in shares)	54,976	16,270
Balance at end of period (in shares)	651,454	816,030	706,430	832,300
Options vested and exercisable (in shares)	649,054
Vested during period (in shares)	0	0
Weighted Average Exercise Price
Balance at beginning of year (in dollars per share)	$ 17.43	$ 17.42	$ 17.42
Exercised (in dollars per share)	17.36	17.36
Balance at end of year (in dollars per share)	17.44	$ 17.42	$ 17.43	$ 17.42
Options vested and exercisable (in dollars per share)	$ 17.41
Remaining Contractual Life
Options outstanding	3 years 5 months 16 days	4 years 5 months 12 days	3 years 8 months 12 days	4 years 8 months 12 days
Options vested and exercisable	3 years 5 months 9 days
Aggregate Intrinsic Value
Beginning of year	$ 10,884,000	$ 8,588,000	$ 8,588,000
Exercised	874,000	140,000
End of year	8,945,000	7,048,000	$ 10,884,000	$ 8,588,000
Options vested and exercisable	8,933,000
Stock option activity
Intrinsic value of stock options exercised	874,000	140,000
Proceeds received from stock options exercised	955,000	283,000
Tax benefits realized from stock options exercised	307,000	$ 38,000
Unrecognized compensation costs	$ 7,000
Unrecognized compensation costs, period of recognition	3 years
Vesting period	3 years
Stock Options | Common Stock
Stock option activity
Exercised (in shares)	54,976

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Restricted Stock Awards
Non-vested at beginning of period (in shares)	2,400	114,542
Granted (in shares)	0	0
Non-vested at end of period (in shares)	2,400	114,542
Weighted Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)	$ 26.23	$ 17.67
Granted (in dollars per share)	0	0
Non-vested at end of period (in dollars per share)	$ 26.23	$ 17.67
Unrecognized compensation
Unrecognized compensation costs	$ 44,000
Unrecognized compensation costs, period of recognition	3 years
Vesting period	3 years

Earnings Per Share (Details)

Earnings Per Share (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)security$ / sharesshares	Mar. 31, 2016USD ($)$ / sharesshares
Earnings Per Share
Net income | $	$ 4,321	$ 3,784
Weighted-average number of shares used in:
Basic earnings per share (in shares)	9,215,142	9,034,919
Dilutive common stock equivalents:
Stock options and restricted stock units (in shares)	230,847	270,696
Diluted earnings per share (in shares)	9,445,989	9,305,615
Net income per common share, basic (in dollars per share) | $ / shares	$ 0.47	$ 0.42
Net income per common share, diluted (in dollars per share) | $ / shares	$ 0.46	$ 0.41
Number of different forms of outstanding common stock | security	2

Other Comprehensive Income an63

Other Comprehensive Income and Loss - Changes in Components of Accumulated Other Comprehensive Income and Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Changes in the components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period	$ (229,786)	$ (219,641)
Net current period other comprehensive loss (income)	(2)	17
Balance at end of period	(232,624)	(223,027)
Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period	5,316	5,236
Other comprehensive loss (income), net of taxes	(2)	17
Net current period other comprehensive loss (income)	(2)	17
Balance at end of period	5,314	5,253
Unfunded Pension Liability
Changes in the components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period	5,284	5,044
Other comprehensive loss (income), net of taxes		21
Net current period other comprehensive loss (income)		21
Balance at end of period	5,284	5,065
Noncredit Related Loss
Changes in the components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period		147
Other comprehensive loss (income), net of taxes		(2)
Net current period other comprehensive loss (income)		(2)
Balance at end of period		145
Unrealized Loss on Securities
Changes in the components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period	32	45
Other comprehensive loss (income), net of taxes	(2)	(2)
Net current period other comprehensive loss (income)	(2)	(2)
Balance at end of period	$ 30	$ 43

Other Comprehensive Income an64

Other Comprehensive Income and Loss - Tax Effect on Each Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Tax effect on each component of other comprehensive loss
Pretax amount	$ (3)	$ (7)
Tax	1	24
Net current period other comprehensive loss (income)	(2)	17
Unfunded Pension Liability
Tax effect on each component of other comprehensive loss
Tax		21
Net current period other comprehensive loss (income)		21
Noncredit Related Loss
Tax effect on each component of other comprehensive loss
Pretax amount		(3)
Tax		1
Net current period other comprehensive loss (income)		(2)
Unrealized Loss on Securities
Tax effect on each component of other comprehensive loss
Pretax amount	(3)	(4)
Tax	1	2
Net current period other comprehensive loss (income)	$ (2)	$ (2)

Fair Value of Financial Instr65

Fair Value of Financial Instruments - Trust Preferred Securities (Details) - Trust preferred securities	3 Months Ended	12 Months Ended	63 Months Ended	111 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2017Transaction	Mar. 31, 2017shares
Investment Securities
Number of market transactions of the security | Transaction			6
Period of minimal activity in trust preferred securities tranche determining the market to be inactive			63 months
Securities issued | shares				0
Fair Value, Measurements, Nonrecurring | Level 3 | Discounted cash flow | LIBOR
Investment Securities
Discount rate variable rate basis	Three-month LIBOR	Three-month LIBOR
Discount rate, margin added to variable rate (as a percent)	20.00%	20.00%

Fair Value of Financial Instr66

Fair Value of Financial Instruments - Estimated Fair Values (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Investment securities held to maturity	$ 392,384	$ 407,922
Carrying Amount
Assets
Cash and cash equivalents	103,123	61,273
Investment securities held to maturity	391,988	407,656
Loans held for sale	1,752	1,601
Loans receivable, net	1,367,217	1,335,987
FHLB stock	5,013	4,945
FRB stock	3,103	3,095
Accrued interest receivable	4,766	4,732
Interest rate contracts	69	104
Liabilities
Deposits	1,548,906	1,493,200
Advances from the Federal Home Loan Bank	69,000	69,000
Securities sold under agreements to repurchase	55,000	55,000
Accrued interest payable	335	218
Interest rate contracts	69	104
Estimated Fair Value
Assets
Cash and cash equivalents	103,123	61,273
Investment securities held to maturity	392,384	407,922
Loans held for sale	1,803	1,601
Loans receivable, net	1,379,331	1,352,137
FHLB stock	5,013	4,945
FRB stock	3,103	3,095
Accrued interest receivable	4,766	4,732
Interest rate contracts	69	104
Liabilities
Deposits	1,548,586	1,493,094
Advances from the Federal Home Loan Bank	68,946	69,068
Securities sold under agreements to repurchase	55,020	55,123
Accrued interest payable	335	218
Interest rate contracts	69	104
Estimated Fair Value | Level 1
Assets
Cash and cash equivalents	103,123	61,273
Accrued interest receivable	4	10
Estimated Fair Value | Level 2
Assets
Investment securities held to maturity	391,262	406,759
Loans held for sale	1,803	1,601
FHLB stock	5,013	4,945
FRB stock	3,103	3,095
Accrued interest receivable	1,066	1,064
Interest rate contracts	69	104
Liabilities
Deposits	1,270,113	1,257,157
Advances from the Federal Home Loan Bank	68,946	69,068
Securities sold under agreements to repurchase	55,020	55,123
Accrued interest payable	172	172
Interest rate contracts	69	104
Estimated Fair Value | Level 3
Assets
Investment securities held to maturity	1,122	1,163
Loans receivable, net	1,379,331	1,352,137
Accrued interest receivable	3,696	3,658
Liabilities
Deposits	278,473	235,937
Accrued interest payable	$ 163	$ 46

Fair Value of Financial Instr67

Fair Value of Financial Instruments - Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	$ 69	$ 104
Interest rate contracts - liabilities	(69)	(104)
Level 2
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	69	104
Interest rate contracts - liabilities	$ (69)	$ (104)

Fair Value of Financial Instr68

Fair Value of Financial Instruments - Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Loans held for sale
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value		$ 1,601
Total Gains (Losses)		(1)
Trust preferred securities
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value		1,066
Total Gains (Losses)		242
Mortgage servicing assets
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value		341
Total Gains (Losses)		(49)
Impaired loans
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value	$ 87	64
Total Gains (Losses)	(11)	(33)
Level 2 | Loans held for sale
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value		1,601
Level 2 | Impaired loans
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value	$ 87	64
Level 3 | Trust preferred securities
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value		1,066
Level 3 | Mortgage servicing assets
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value		$ 341

Fair Value of Financial Instr69

Fair Value of Financial Instruments - Significant Unobservable Inputs (Details) - Fair Value, Measurements, Nonrecurring - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Trust preferred securities
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Fair Value		$ 1,066,000
Mortgage servicing assets
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Fair Value		341,000
Level 3 | Trust preferred securities
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Fair Value		1,066,000
Level 3 | Mortgage servicing assets
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Fair Value		$ 341,000
Level 3 | Discounted cash flow | Trust preferred securities | LIBOR
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Discount rate variable rate basis	Three-month LIBOR	Three-month LIBOR
Discount rate, margin added to variable rate (as a percent)	20.00%	20.00%
Level 3 | Discounted cash flow | Mortgage servicing assets
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Discount rate (as a percent)		10.50%
Annual cost to service (in dollars per loan)		$ 65
Level 3 | Discounted cash flow | Mortgage servicing assets | Minimum
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Prepayment speed (PSA) (as percent)		158.40%
Level 3 | Discounted cash flow | Mortgage servicing assets | Maximum
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Prepayment speed (PSA) (as percent)		203.50%

Subsequent Events (Details)

Subsequent Events (Details)	Apr. 27, 2017$ / shares
Subsequent event
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)	$ 0.20