Territorial Bancorp (TBNK) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 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	Sep. 30, 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		9,880,501
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 38,385	$ 61,273
Investment securities available for sale	2,910
Investment securities held to maturity, at amortized cost (fair value of $415,112 and $407,922 at September 30, 2017 and December 31, 2016, respectively)	411,657	407,656
Loans held for sale	495	1,601
Loans receivable, net	1,434,753	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	4,985	4,732
Premises and equipment, net	5,658	4,327
Bank-owned life insurance	43,976	43,294
Deferred income tax assets, net	7,172	7,905
Prepaid expenses and other assets	4,350	2,747
Total assets	1,962,457	1,877,562
Liabilities:
Deposits	1,571,367	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	24,341	23,258
Income taxes payable	1,693	1,616
Advance payments by borrowers for taxes and insurance	3,764	5,702
Total liabilities	1,725,165	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 9,855,555 and 9,778,974 shares at September 30, 2017 and December 31, 2016, respectively	99	98
Additional paid-in capital	72,729	71,914
Unearned ESOP shares	(5,505)	(5,872)
Retained earnings	175,286	168,962
Accumulated other comprehensive loss	(5,317)	(5,316)
Total stockholders' equity	237,292	229,786
Total liabilities and stockholders' equity	$ 1,962,457	$ 1,877,562

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Consolidated Balance Sheets
Investment securities held to maturity, fair value (in dollars)	$ 415,112	$ 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	9,855,555	9,778,974
Common stock, shares outstanding	9,855,555	9,778,974

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest income:
Loans	$ 13,837	$ 13,052	$ 40,877	$ 38,060
Investment securities	3,169	3,496	9,328	11,121
Other investments	171	121	530	411
Total interest income	17,177	16,669	50,735	49,592
Interest expense:
Deposits	2,033	1,485	5,459	4,363
Advances from the Federal Home Loan Bank	264	259	779	772
Securities sold under agreements to repurchase	221	220	654	656
Total interest expense	2,518	1,964	6,892	5,791
Net interest income	14,659	14,705	43,843	43,801
Provision for loan losses	54	107	2	219
Net interest income after provision for loan losses	14,605	14,598	43,841	43,582
Noninterest income:
Service fees on loan and deposit accounts	427	493	1,490	1,422
Income on bank-owned life insurance	228	240	681	727
Gain on sale of investment securities	150	60	431	250
Gain on sale of loans	28	114	154	304
Other	76	96	234	320
Total noninterest income	909	1,003	2,990	3,023
Noninterest expense:
Salaries and employee benefits	5,201	5,265	15,254	15,947
Occupancy	1,529	1,432	4,439	4,285
Equipment	882	865	2,630	2,683
Federal deposit insurance premiums	152	144	448	596
Other general and administrative expenses	997	939	3,451	3,181
Total noninterest expense	8,761	8,645	26,222	26,692
Income before income taxes	6,753	6,956	20,609	19,913
Income taxes	2,580	2,792	7,814	7,928
Net income	$ 4,173	$ 4,164	$ 12,795	$ 11,985
Basic earnings per share (in dollars per share)	$ 0.45	$ 0.45	$ 1.38	$ 1.31
Diluted earnings per share (in dollars per share)	0.44	0.44	1.34	1.28
Cash dividends paid per common share (in dollars per share)	$ 0.30	$ 0.18	$ 0.7	$ 0.54
Basic weighted-average shares outstanding (in shares)	9,280,018	9,102,837	9,250,537	9,065,892
Diluted weighted-average shares outstanding (in shares)	9,521,201	9,325,506	9,535,875	9,280,260

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Consolidated Statements of Comprehensive Income
Net income	$ 4,173	$ 4,164	$ 12,795	$ 11,985
Change in unfunded pension liability				(21)
Change in unrealized loss on securities	12	4	(1)	10
Change in noncredit related loss on trust preferred securities		45		91
Other comprehensive income (loss), net of tax	12	49	(1)	80
Comprehensive income	$ 4,185	$ 4,213	$ 12,794	$ 12,065

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				11,985		11,985
Other comprehensive income (loss)					80	80
Cash dividends paid ($0.70 per share and $0.54 per share for the nine months ended September 30, 2017 and September 30, 2016, respectively)				(4,938)		(4,938)
Share-based compensation	1	1,778				1,779
Allocation of ESOP shares (36,699 shares for the nine months ended September 30, 2017 and September 30, 2016)		612	367			979
Repurchase of company common stock (91,456 shares and 100,758 shares for the nine months ended September 30, 2017 and September 30, 2016, respectively)	(1)	(2,724)				(2,725)
Exercise of options for common stock (166,837 shares and 93,100 shares for the nine months ended September 30, 2017 and September 30, 2016, respectively)	1	1,616				1,617
Balance at Sep. 30, 2016	97	71,400	(5,994)	168,071	(5,156)	228,418
Balance at Jun. 30, 2016					(5,205)
Increase (Decrease) in Stockholders' Equity
Net income						4,164
Other comprehensive income (loss)					49	49
Balance at Sep. 30, 2016	97	71,400	(5,994)	168,071	(5,156)	228,418
Balance at Dec. 31, 2016	98	71,914	(5,872)	168,962	(5,316)	229,786
Increase (Decrease) in Stockholders' Equity
Net income				12,795		12,795
Other comprehensive income (loss)					(1)	(1)
Cash dividends paid ($0.70 per share and $0.54 per share for the nine months ended September 30, 2017 and September 30, 2016, respectively)				(6,471)		(6,471)
Share-based compensation		48				48
Allocation of ESOP shares (36,699 shares for the nine months ended September 30, 2017 and September 30, 2016)		777	367			1,144
Repurchase of company common stock (91,456 shares and 100,758 shares for the nine months ended September 30, 2017 and September 30, 2016, respectively)	(1)	(2,905)				(2,906)
Exercise of options for common stock (166,837 shares and 93,100 shares for the nine months ended September 30, 2017 and September 30, 2016, respectively)	2	2,895				2,897
Balance at Sep. 30, 2017	99	72,729	(5,505)	175,286	(5,317)	237,292
Balance at Jun. 30, 2017					(5,329)
Increase (Decrease) in Stockholders' Equity
Net income						4,173
Other comprehensive income (loss)					12	12
Balance at Sep. 30, 2017	$ 99	$ 72,729	$ (5,505)	$ 175,286	$ (5,317)	$ 237,292

Consolidated Statements of Sto7

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Consolidated Statements of Stockholders' Equity, Share Data
Cash dividends paid (in dollars per share)	$ 0.7	$ 0.54
Common Stock
Consolidated Statements of Stockholders' Equity, Share Data
Allocation of ESOP shares, shares	36,699	36,699
Repurchase of company common stock, shares	91,456	100,758
Exercise of options for common stock, shares	166,837	93,100

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 12,795	$ 11,985
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	2	219
Depreciation and amortization	816	886
Deferred income tax expense	733	1,041
Amortization of fees, discounts, and premiums	(339)	(604)
Origination of loans held for sale	(19,023)	(39,336)
Proceeds from sales of loans held for sale	20,284	38,844
Gain on sale of loans, net	(154)	(304)
Gain on sale of investment securities held to maturity	(431)	(250)
Net loss on disposal of premises and equipment	25
ESOP expense	1,144	979
Share-based compensation expense	48	1,779
Increase in accrued interest receivable	(253)	(66)
Net increase in bank-owned life insurance	(682)	(727)
Net increase in prepaid expenses and other assets	(1,722)	(316)
Net increase in accounts payable and accrued expenses	1,083	1,558
Net decrease in advance payments by borrowers for taxes and insurance	(1,938)	(1,828)
Net (increase) decrease in income taxes receivable	119	(737)
Net increase (decrease) in income taxes payable	77	(444)
Net cash from operating activities	12,584	12,679
Cash flows from investing activities:
Purchases of investment securities held to maturity	(51,894)	(2,523)
Purchases of investment securities available for sale	(2,970)
Principal repayments on investment securities held to maturity	40,925	60,077
Principal repayments on investment securities available for sale	50
Proceeds from sale of investment securities held to maturity	7,446	3,923
Loan originations, net of principal repayments on loans receivable	(98,468)	(112,498)
Purchases of Federal Home Loan Bank stock	(1,609)	(275)
Proceeds from redemption of Federal Home Loan Bank stock	1,541	120
Purchases of Federal Reserve Bank stock	(8)	(59)
Purchases of premises and equipment	(2,172)	(190)
Net cash from investing activities	(107,159)	(51,425)
Cash flows from financing activities:
Net increase in deposits	78,167	19,376
Proceeds from advances from the Federal Home Loan Bank	38,525	3,000
Repayments of advances from the Federal Home Loan Bank	(38,525)	(3,000)
Purchases of Fed Funds	10	10
Sales of Fed Funds	(10)	(10)
Proceeds from exercise of stock options		566
Repurchases of common stock	(9)	(1,674)
Cash dividends paid	(6,471)	(4,938)
Net cash from financing activities	71,687	13,330
Net decrease in cash and cash equivalents	(22,888)	(25,416)
Cash and cash equivalents at beginning of the period	61,273	65,919
Cash and cash equivalents at end of the period	38,385	40,503
Cash paid for:
Interest on deposits and borrowings	6,698	5,770
Income taxes	6,956	8,068
Supplemental disclosure of noncash investing and financing activities:
Company stock acquired through stock swap and net settlement transactions	$ 2,897	$ 1,051

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 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 Company has reviewed all revenue sources to determine if the sources are in scope for this guidance. Net interest income from financial assets and liabilities are explicitly excluded from the scope of the amendment. The Company’s overall assessment of key in-scope revenue sources include service charges on deposit accounts, rental income from safe deposit boxes and commissions on insurance and annuity sales. The guidance is not expected to have a significant impact on the Company’s revenue recognition for these key in-scope revenue sources. The Company plans to adopt this amendment effective January 1, 2018, under the modified retrospective approach with a cumulative effect adjustment to opening retained earnings, if such adjustment is considered to be significant. 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. Since the Company does not own any equity securities subject to the amendment in its investment portfolio, the amendment will not have a significant impact on its consolidated financial statements. The Company will continue to evaluate the effects that the use of exit prices will have on its fair value disclosures. The amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. 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 amendment 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. For the three and nine months ended September 30, 2017, the Company recognized $150,000 and $541,000, respectively, 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	9 Months Ended
	Sep. 30, 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: September 30, December 31, (Dollars in thousands) 2017 2016 Cash and due from banks $ 10,118 $ 9,043 Interest-earning deposits in other banks 28,267 52,230 Cash and cash equivalents $ 38,385 $ Interest-earning deposits in other banks consist primarily of deposits at the Federal Reserve Bank of San Francisco.

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 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 September 30, 2017: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,920 $ — $ (10) $ 2,910 Total $ 2,920 $ — $ (10) $ 2,910 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 411,065 $ 7,374 $ (4,252) $ 414,187 Trust preferred securities 592 333 — 925 Total $ 411,657 $ 7,707 $ (4,252) $ 415,112 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 by maturity date at September 30, 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 Available-for-sale: Due within 5 years $ — $ — Due after 5 years through 10 years — — Due after 10 years 2,920 2,910 Total $ 2,920 $ 2,910 Held-to-maturity: Due within 5 years $ 12 $ 13 Due after 5 years through 10 years 50 50 Due after 10 years 411,595 415,049 Total $ 411,657 $ 415,112 Realized gains and losses and the proceeds from sales of securities held to maturity are shown in the table below. All sales of securities were U.S. government-sponsored mortgage-backed securities. Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2017 2016 2017 2016 Proceeds from sales $ 2,393 $ 801 $ 7,446 $ 3,923 Gross gains 150 60 431 250 Gross losses — — — — 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 $275.6 million and $239.9 million at September 30, 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 September 30, 2017 and December 31, 2016. The Company does not intend to sell held-to-maturity and available-for-sale 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) September 30, 2017: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,910 $ 10 $ — $ — 1 $ 2,910 $ 10 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 117,700 $ 1,875 $ 67,276 $ 2,377 47 $ 184,976 $ 4,252 December 31, 2016: Held-to-maturity: U.S. government-sponsored 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 September 30, 2017 and December 31, 2016. Trust Preferred Securities . At September 30, 2017, the Company owned one trust preferred security, PreTSL XXIII. PreTSL XXIII has an amortized cost and a remaining cost basis of $592,000 at September 30, 2017. 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 69 months in the same tranche of securities that we own and no new issuances 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 nine months ended September 30, 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 $592,000 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: Nine Months Ended September 30, (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: September 30, (Dollars in thousands) 2017 2016 Noncredit losses on other-than-temporarily impaired securities, net of taxes $ — $ 56

Loans Receivable and Allowance

Loans Receivable and Allowance for Loan Losses	9 Months Ended
	Sep. 30, 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: September 30, December 31, (Dollars in thousands) 2017 2016 Real estate loans: First mortgages: One- to four-family residential $ 1,390,037 $ 1,289,364 Multi-family residential 9,334 9,551 Construction, commercial and other 22,490 23,346 Home equity loans and lines of credit 13,474 14,805 Total real estate loans 1,435,335 1,337,066 Other loans: Loans on deposit accounts 285 204 Consumer and other loans 4,798 4,360 Total other loans 5,083 4,564 Less: Net unearned fees and discounts (3,166) (3,191) Allowance for loan losses (2,499) (2,452) Total unearned fees, discounts and allowance for loan losses (5,665) (5,643) Loans receivable, net $ 1,434,753 $ 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 September 30, 2017: Balance, beginning of period $ 1,602 $ 556 $ 1 $ 53 $ 245 $ 2,457 Provision (reversal of provision) for loan losses 30 16 — 18 (10) 54 1,632 572 1 71 235 2,511 Charge-offs — — — (12) — (12) Recoveries — — — — — — Net charge-offs — — — (12) — (12) Balance, end of period $ 1,632 $ 572 $ 1 $ 59 $ 235 $ 2,499 Nine months ended September 30, 2017: Balance, beginning of period $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 Provision (reversal of provision) for loan losses (26) 53 (1) (37) 13 2 1,568 572 1 78 235 2,454 Charge-offs (11) — — (24) — (35) Recoveries 75 — — 5 — 80 Net recoveries (charge-offs) 64 — — (19) — 45 Balance, end of period $ 1,632 $ 572 $ 1 $ 59 $ 235 $ 2,499 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 September 30, 2016: Balance, beginning of period $ 1,444 $ 567 $ 3 $ 56 $ 206 $ 2,276 Provision (reversal of provision) for loan losses 133 (87) (1) 54 8 107 1,577 480 2 110 214 2,383 Charge-offs (33) — — (5) — (38) Recoveries 15 — — 2 — 17 Net charge-offs (18) — — (3) — (21) Balance, end of period $ 1,559 $ 480 $ 2 $ 107 $ 214 $ 2,362 Nine months ended September 30, 2016: Balance, beginning of period $ 1,380 $ 517 $ 3 $ 72 $ 194 $ 2,166 Provision (reversal of provision) for loan losses 190 (37) (1) 47 20 219 1,570 480 2 119 214 2,385 Charge-offs (33) — — (23) — (56) Recoveries 22 — — 11 — 33 Net charge-offs (11) — — (12) — (23) Balance, end of period $ 1,559 $ 480 $ 2 $ 107 $ 214 $ 2,362 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 related to 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 September 30, 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 bank regulators 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 September 30, 2017: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,632 572 1 59 235 2,499 Total ending allowance balance $ 1,632 $ 572 $ 1 $ 59 $ 235 $ 2,499 Loans: Ending loan balance: Individually evaluated for impairment $ 4,099 $ — $ 170 $ — $ — $ 4,269 Collectively evaluated for impairment 1,392,170 22,405 13,310 5,098 — 1,432,983 Total ending loan balance $ 1,396,269 $ 22,405 $ 13,480 $ 5,098 $ — $ 1,437,252 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 September 30, 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,099 $ 4,976 Home equity loans and lines of credit 170 229 Total $ 4,269 $ 5,205 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 For the Nine Months Ended September 30, September 30, Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,135 $ 13 $ 4,203 $ 43 Home equity loans and lines of credit 172 — 177 — Total $ 4,307 $ 13 $ 4,380 $ 43 2016: With no related allowance recorded: One- to four-family residential mortgages $ 5,936 $ 19 $ 6,000 $ 57 Home equity loans and lines of credit 162 — 163 — Total $ 6,098 $ 19 $ 6,163 $ 57 There were no loans individually evaluated for impairment with a related allowance for loan loss as of September 30, 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 September 30, 2017: One- to four-family residential mortgages $ 438 $ — $ 652 $ 1,090 $ 1,385,864 $ 1,386,954 $ 3,179 $ — Multi-family residential mortgages — — — — 9,315 9,315 — — Construction, commercial and other mortgages — — — — 22,405 22,405 — — Home equity loans and lines of credit — — 41 41 13,439 13,480 170 — Loans on deposit accounts — — — — 285 285 — — Consumer and other 1 3 — 4 4,809 4,813 — — Total $ 439 $ 3 $ 693 $ 1,135 $ 1,436,117 $ 1,437,252 $ 3,349 $ — 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 $3.3 million at September 30, 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 $137,000 and $149,000 during the nine months ended September 30, 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 $169,000 and $211,000 during the nine months ended September 30, 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 September 30, 2017 and December 31, 2016. There were no loans modified in a troubled debt restructuring during the nine months ended September 30, 2017 or 2016. There were no new troubled debt restructurings within the past 12 months that subsequently defaulted. The table below summarizes troubled debt restructurings by class of loans: Number of Accrual Number of Nonaccrual (Dollars in thousands) Loans Status Loans Status Total September 30, 2017: One- to four-family residential mortgages 4 $ 920 5 $ 1,097 $ 2,017 Home equity loans and lines of credit — — 1 96 96 Total 4 $ 920 6 $ 1,193 $ 2,113 December 31, 2016: One- to four-family residential mortgages 5 $ 1,185 7 $ 1,629 $ 2,814 Home equity loans and lines of credit — — 1 107 107 Total 5 $ 1,185 8 $ 1,736 $ 2,921 One of the restructured loans, for $149,000, was more than 149 days delinquent and not accruing interest as of September 30, 2017 and 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 September 30, 2017, we had no commitments to lend any additional funds to these borrowers. The Company had no real estate owned as of September 30, 2017 or December 31, 2016. There were three one- to four-family residential mortgage loans totaling $652,000 and one home equity loan for $41,000 in the process of foreclosure as of September 30, 2017, and four one- to four-family residential mortgage loans totaling $702,000 in the process of foreclosure as of 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 nine months ended September 30, 2017 and 2016, the Company sold $20.3 million and $38.6 million, respectively, of mortgage loans held for sale and recognized gains of $154,000 and $304,000, respectively. The Company had one loan held for sale for $495,000 at September 30, 2017 and five loans held for sale totaling $1.6 million at December 31, 2016. The Company serviced loans for others of $37.5 million at September 30, 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 September 30, 2017 and December 31, 2016, respectively. The amount of contractually specified servicing fees earned for the nine-month periods ended September 30, 2017 and 2016 was $80,000 and $99,000, respectively. The amount of contractually specified servicing fees earned for the three-month periods ended September 30, 2017 and 2016 was $26,000 and $31,000, 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	9 Months Ended
	Sep. 30, 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: September 30, 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 September 30, 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 $ 61,372 $ 61,614 $ 55,000 $ 6,614 11

Offsetting of Financial Liabili

Offsetting of Financial Liabilities	9 Months Ended
	Sep. 30, 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 September 30, 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	9 Months Ended
	Sep. 30, 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 SERP Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2017 2016 2017 2016 Net periodic benefit cost for the period: Service cost $ 19 $ 15 $ 39 $ 44 Interest cost 34 32 104 98 Expected return on plan assets — — — — Amortization of prior service cost — — — — Recognized actuarial loss — — — — Recognized curtailment loss — — — — Net periodic benefit cost $ 53 $ 47 $ 143 $ 142

Employee Stock Ownership Plan

Employee Stock Ownership Plan	9 Months Ended
	Sep. 30, 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 September 30, 2017 and 2016 amounted to $298,000 and $283,000, respectively. Compensation expense recognized for the nine months ended September 30, 2017 and 2016 amounted to $923,000 and $804,000, respectively. Shares held by the ESOP trust were as follows: September 30, December 31, 2017 2016 Allocated shares 392,351 372,997 Unearned shares 550,494 587,193 Total ESOP shares 942,845 960,190 Fair value of unearned shares, in thousands $ 17,379 $ 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 September 30, 2017 and 2016, we accrued $97,000 and $122,000, respectively, for the ESOP restoration plan. For the nine months ended September 30, 2017 and 2016, we accrued $161,000 and $244,000, respectively, for the ESOP restoration plan.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 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: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Compensation expense $ 58 $ 457 $ 95 $ 1,780 Income tax benefit 23 183 38 714 Shares of our common stock issued under the 2010 Equity Incentive Plan shall come from authorized 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 nine months ended September 30, 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 166,837 17.36 — 2,414 Forfeited — — — — Expired — — — — Options outstanding at September 30, 2017 539,593 $ 17.45 2.96 $ 7,616 Options outstanding at December 31, 2015 832,300 $ 17.42 4.70 $ 8,588 Granted — — — — Exercised 93,100 17.36 — 908 Forfeited — — — — Expired — — — — Options outstanding at September 30, 2016 739,200 $ 17.43 3.95 $ 8,302 Options vested and exercisable at September 30, 2017 $ $ 7,610 The following summarizes certain stock option activity of the Company: For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Intrinsic value of stock options exercised $ 744 $ 368 $ 2,414 $ 908 Proceeds received from stock options exercised 971 551 2,897 1,616 Tax benefits realized from stock options exercised 245 121 838 216 Total fair value of stock options that vested 38 3,923 38 3,923 During the nine months ended September 30, 2017, we issued 75,707 shares of common stock, net, in exchange for 166,837 stock options and 91,130 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 September 30, 2017, the Company had $4,000 of unrecognized compensation costs related to the stock option plan that will be amortized over a three-year vesting period. Restricted Stock 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 may not be disposed of or transferred during the vesting period. Restricted stock carries the right to receive dividends, although dividends attributable to restricted stock are retained by the Company until the shares vest, at which time they are paid to the award recipient. The table below presents the restricted stock activity: Weighted Average Grant Restricted Date Fair Stock Awards Value Nonvested at December 31, 2016 2,400 $ 26.23 Granted 9,604 29.53 Vested 1,200 26.23 Forfeited — — Nonvested at September 30, 2017 10,804 $ 29.16 Nonvested at December 31, 2015 114,542 $ 17.67 Granted — — Vested 112,142 17.49 Forfeited — — Nonvested at September 30, 2016 2,400 $ 26.23 During the nine months ended September 30, 2017, the Company issued 9,604 shares of restricted stock to certain members of executive management under the 2010 Equity Incentive Plan. The fair value of the restricted stock is based on the value of the Company’s stock on the date of grant. Restricted stock will vest over three years from the date of grant. As of September 30, 2017, the Company had $278,000 of unrecognized compensation costs related to restricted stock. During the nine months ended September 30, 2017, the Company issued 11,525 of performance-based restricted stock units (PRSUs) to certain members of executive management under the 2010 Equity Incentive Plan. These PRSUs will vest in the first quarter of 2020 after our Compensation Committee determines whether a performance condition that compares the Company’s return on average equity to the SNL Bank Index is achieved. Depending on the Company’s performance, the actual number of these PRSUs that are issued at the end of the vesting period can vary between 0% to 150% of the target award. For the PRSUs, an estimate is made of the number of shares expected to vest based on the probability that the performance criteria will be achieved to determine the amount of compensation expense to be recognized. This estimate is re-evaluated quarterly and total compensation expense is adjusted for any change in the current period. The table below presents the PRSUs that will vest on a performance condition: Performance- Based Restricted Stock Units Weighted Based on a Average Grant Performance Date Fair Condition Value Nonvested at December 31, 2016 — $ — Granted 11,525 29.53 Vested — — Forfeited — — Nonvested at September 30, 2017 11,525 $ 29.53 The fair value of these PRSUs is based on the fair value of the Company’s stock on the date of grant. As of September 30, 2017, the Company had $215,000 of unrecognized compensation costs related to these PRSUs. Performance will be measured over a three-year performance period and will be cliff vested. During the nine months ended September 30, 2017, the Company issued 2,881 of PRSUs to certain members of executive management under the 2010 Equity Incentive Plan. These PRSUs will vest in the first quarter of 2020 after our Compensation Committee determines whether a market condition that compares the Company’s total stock return to the SNL Bank Index is achieved. The number of shares that will be expensed will not be adjusted for performance. The fair value of these PRSUs is based on a Monte Carlo valuation of the Company’s stock on the date of grant. The assumptions which were used in the Monte Carlo valuation of the PRSUs are: Grant date: May 25, 2017 Performance period: January 1, 2017 to December 31, 2019 2.60 year risk-free rate on grant date: 1.40% December 31, 2016 closing price: $32.84 Closing stock price on the date of grant: $29.53 Annualized volatility (based on 2.60 year historical volatility as of the grant date): 15.7% Annual dividend preceding the grant date: $0.80 The table below presents the PRSUs that will vest on a market condition: Performance- Based Restricted Monte Carlo Stock Units Valuation of Based on a the Company's Market Condition Stock Nonvested at December 31, 2016 — $ — Granted 2,881 24.44 Vested — — Forfeited — — Nonvested at September 30, 2017 2,881 $ 24.44 As of September 30, 2017, the Company had $41,000 of unrecognized compensation costs related to the PRSUs that are based on a market condition. Performance will be measured over a three-year performance period and will be cliff vested.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share
Earnings Per Share	(12) Earnings Per Share Holders of unvested restricted stock receive nonforfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Unvested restricted stock awards that contain nonforfeitable rights to dividends or dividend equivalents are considered to be participating securities in the earnings per share computation using the two-class method. Under the two-class method, earnings are allocated to common shareholders and participating securities according to their respective rights to earnings. The table below presents the information used to compute basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands, except per share data) 2017 2016 2017 2016 Net income $ 4,173 $ 4,164 $ 12,795 $ 11,985 Income allocated to participating securities (10) (47) (15) (136) Net income available to common shareholders $ 4,163 $ 4,117 $ 12,780 $ 11,849 Weighted-average number of shares used in: Basic earnings per share 9,280,018 9,102,837 9,250,537 9,065,892 Dilutive common stock equivalents: Stock options and restricted stock units 241,183 222,669 285,338 214,368 Diluted earnings per share 9,521,201 9,325,506 9,535,875 9,280,260 Net income per common share, basic $ 0.45 $ 0.45 $ 1.38 $ 1.31 Net income per common share, diluted $ 0.44 $ 0.44 $ 1.34 $ 1.28

Other Comprehensive Income and

Other Comprehensive Income and Loss	9 Months Ended
	Sep. 30, 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 September 30, 2017 Balances at beginning of period $ 5,284 $ — $ 45 $ 5,329 Other comprehensive income, net of taxes — — (12) (12) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive income — — (12) (12) Balances at end of period $ 5,284 $ — $ 33 $ 5,317 Three months ended September 30, 2016 Balances at beginning of period $ 5,065 $ 101 $ 39 $ 5,205 Other comprehensive income, net of taxes — (45) (4) (49) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive income — (45) (4) (49) Balances at end of period $ 5,065 $ 56 $ 35 $ 5,156 Nine months ended September 30, 2017 Balances at beginning of period $ 5,284 $ — $ 32 $ 5,316 Other comprehensive loss, net of taxes — — 1 1 Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss — — 1 1 Balances at end of period $ 5,284 $ — $ 33 $ 5,317 Nine months ended September 30, 2016 Balances at beginning of period $ 5,044 $ 147 $ 45 $ 5,236 Other comprehensive loss (income), net of taxes 21 (91) (10) (80) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss (income) 21 (91) (10) (80) Balances at end of period $ 5,065 $ 56 $ 35 $ 5,156 The table below presents the tax effect on each component of accumulated other comprehensive loss: Three Months Ended September 30, 2017 2016 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unfunded pension liability $ — $ — $ — $ — $ — $ — Noncredit related loss on trust preferred securities — — — (74) 29 (45) Unrealized loss on securities (21) 9 (12) (7) 3 (4) Total $ (21) $ 9 $ (12) $ (81) $ 32 $ (49) Nine Months Ended September 30, 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 — — — (150) 59 (91) Unrealized loss on securities 1 — 1 (17) 7 (10) Total $ 1 $ — $ 1 $ (167) $ 87 $ (80)

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 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 69 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, including estimated prepayments, 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 September 30, 2017 Assets Cash and cash equivalents $ 38,385 $ 38,385 $ 38,385 $ — $ — Investment securities available for sale 2,910 2,910 — 2,910 — Investment securities held to maturity 411,657 415,112 — 414,187 925 Loans held for sale 495 499 — 499 — Loans receivable, net 1,434,753 1,455,571 — — 1,455,571 FHLB stock 5,013 5,013 — 5,013 — FRB stock 3,103 3,103 — 3,103 — Accrued interest receivable 4,985 4,985 2 1,111 3,872 Interest rate contracts 2 2 — 2 — Liabilities Deposits 1,571,367 1,570,959 — 1,272,086 298,873 Advances from the Federal Home Loan Bank 69,000 68,933 — 68,933 — Securities sold under agreements to repurchase 55,000 54,986 — 54,986 — Accrued interest payable 412 412 — 174 238 Interest rate contracts 2 2 — 2 — 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 September 30, 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 September 30, 2017 Interest rate contracts — assets $ — $ 2 $ — $ 2 Interest rate contracts — liabilities — (2) — (2) Available-for-sale investments — 2,910 — 2,910 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 fair value of available-for-sale investments was determined using quoted market prices. The table below presents the balance of assets measured at fair value on a nonrecurring basis as of September 30, 2017 and December 31, 2016 and the related gains and losses for the nine months ended September 30, 2017 and the year ended December 31, 2016: Fair Value (Dollars in thousands) Adjustment Date Level 1 Level 2 Level 3 Total Total Gains (Losses) September 30, 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	9 Months Ended
	Sep. 30, 2017
Subsequent Events
Subsequent Events	(15) Subsequent Events On October 25, 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 November 22, 2017 to stockholders of record as of November 8, 2017.

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	9 Months Ended
	Sep. 30, 2017
Cash and Cash Equivalents
Schedule of balances of cash and cash equivalents	September 30, December 31, (Dollars in thousands) 2017 2016 Cash and due from banks $ 10,118 $ 9,043 Interest-earning deposits in other banks 28,267 52,230 Cash and cash equivalents $ 38,385 $

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2017: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,920 $ — $ (10) $ 2,910 Total $ 2,920 $ — $ (10) $ 2,910 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 411,065 $ 7,374 $ (4,252) $ 414,187 Trust preferred securities 592 333 — 925 Total $ 411,657 $ 7,707 $ (4,252) $ 415,112 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 Available-for-sale: Due within 5 years $ — $ — Due after 5 years through 10 years — — Due after 10 years 2,920 2,910 Total $ 2,920 $ 2,910 Held-to-maturity: Due within 5 years $ 12 $ 13 Due after 5 years through 10 years 50 50 Due after 10 years 411,595 415,049 Total $ 411,657 $ 415,112
Schedule of realized gains and losses and proceeds from sales of securities held to maturity and trading	Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2017 2016 2017 2016 Proceeds from sales $ 2,393 $ 801 $ 7,446 $ 3,923 Gross gains 150 60 431 250 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) September 30, 2017: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,910 $ 10 $ — $ — 1 $ 2,910 $ 10 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 117,700 $ 1,875 $ 67,276 $ 2,377 47 $ 184,976 $ 4,252 December 31, 2016: Held-to-maturity: U.S. government-sponsored 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	Nine Months Ended September 30, (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	September 30, (Dollars in thousands) 2017 2016 Noncredit losses on other-than-temporarily impaired securities, net of taxes $ — $ 56

Loans Receivable and Allowanc26

Loans Receivable and Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2017
Loans Receivable and Allowance for Loan Losses
Schedule of components of loans receivable	September 30, December 31, (Dollars in thousands) 2017 2016 Real estate loans: First mortgages: One- to four-family residential $ 1,390,037 $ 1,289,364 Multi-family residential 9,334 9,551 Construction, commercial and other 22,490 23,346 Home equity loans and lines of credit 13,474 14,805 Total real estate loans 1,435,335 1,337,066 Other loans: Loans on deposit accounts 285 204 Consumer and other loans 4,798 4,360 Total other loans 5,083 4,564 Less: Net unearned fees and discounts (3,166) (3,191) Allowance for loan losses (2,499) (2,452) Total unearned fees, discounts and allowance for loan losses (5,665) (5,643) Loans receivable, net $ 1,434,753 $ 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 September 30, 2017: Balance, beginning of period $ 1,602 $ 556 $ 1 $ 53 $ 245 $ 2,457 Provision (reversal of provision) for loan losses 30 16 — 18 (10) 54 1,632 572 1 71 235 2,511 Charge-offs — — — (12) — (12) Recoveries — — — — — — Net charge-offs — — — (12) — (12) Balance, end of period $ 1,632 $ 572 $ 1 $ 59 $ 235 $ 2,499 Nine months ended September 30, 2017: Balance, beginning of period $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 Provision (reversal of provision) for loan losses (26) 53 (1) (37) 13 2 1,568 572 1 78 235 2,454 Charge-offs (11) — — (24) — (35) Recoveries 75 — — 5 — 80 Net recoveries (charge-offs) 64 — — (19) — 45 Balance, end of period $ 1,632 $ 572 $ 1 $ 59 $ 235 $ 2,499 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 September 30, 2016: Balance, beginning of period $ 1,444 $ 567 $ 3 $ 56 $ 206 $ 2,276 Provision (reversal of provision) for loan losses 133 (87) (1) 54 8 107 1,577 480 2 110 214 2,383 Charge-offs (33) — — (5) — (38) Recoveries 15 — — 2 — 17 Net charge-offs (18) — — (3) — (21) Balance, end of period $ 1,559 $ 480 $ 2 $ 107 $ 214 $ 2,362 Nine months ended September 30, 2016: Balance, beginning of period $ 1,380 $ 517 $ 3 $ 72 $ 194 $ 2,166 Provision (reversal of provision) for loan losses 190 (37) (1) 47 20 219 1,570 480 2 119 214 2,385 Charge-offs (33) — — (23) — (56) Recoveries 22 — — 11 — 33 Net charge-offs (11) — — (12) — (23) Balance, end of period $ 1,559 $ 480 $ 2 $ 107 $ 214 $ 2,362
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 September 30, 2017: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,632 572 1 59 235 2,499 Total ending allowance balance $ 1,632 $ 572 $ 1 $ 59 $ 235 $ 2,499 Loans: Ending loan balance: Individually evaluated for impairment $ 4,099 $ — $ 170 $ — $ — $ 4,269 Collectively evaluated for impairment 1,392,170 22,405 13,310 5,098 — 1,432,983 Total ending loan balance $ 1,396,269 $ 22,405 $ 13,480 $ 5,098 $ — $ 1,437,252 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 September 30, 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,099 $ 4,976 Home equity loans and lines of credit 170 229 Total $ 4,269 $ 5,205 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 For the Nine Months Ended September 30, September 30, Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,135 $ 13 $ 4,203 $ 43 Home equity loans and lines of credit 172 — 177 — Total $ 4,307 $ 13 $ 4,380 $ 43 2016: With no related allowance recorded: One- to four-family residential mortgages $ 5,936 $ 19 $ 6,000 $ 57 Home equity loans and lines of credit 162 — 163 — Total $ 6,098 $ 19 $ 6,163 $ 57
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 September 30, 2017: One- to four-family residential mortgages $ 438 $ — $ 652 $ 1,090 $ 1,385,864 $ 1,386,954 $ 3,179 $ — Multi-family residential mortgages — — — — 9,315 9,315 — — Construction, commercial and other mortgages — — — — 22,405 22,405 — — Home equity loans and lines of credit — — 41 41 13,439 13,480 170 — Loans on deposit accounts — — — — 285 285 — — Consumer and other 1 3 — 4 4,809 4,813 — — Total $ 439 $ 3 $ 693 $ 1,135 $ 1,436,117 $ 1,437,252 $ 3,349 $ — 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 $ —
Summary of troubled debt restructurings by class of loan	Number of Accrual Number of Nonaccrual (Dollars in thousands) Loans Status Loans Status Total September 30, 2017: One- to four-family residential mortgages 4 $ 920 5 $ 1,097 $ 2,017 Home equity loans and lines of credit — — 1 96 96 Total 4 $ 920 6 $ 1,193 $ 2,113 December 31, 2016: One- to four-family residential mortgages 5 $ 1,185 7 $ 1,629 $ 2,814 Home equity loans and lines of credit — — 1 107 107 Total 5 $ 1,185 8 $ 1,736 $ 2,921

Securities Sold Under Agreeme27

Securities Sold Under Agreements to Repurchase (Tables)	9 Months Ended
	Sep. 30, 2017
Securities Sold Under Agreements to Repurchase
Summary of securities sold under agreements to repurchase	September 30, 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 $ 61,372 $ 61,614 $ 55,000 $ 6,614 11

Offsetting of Financial Liabi28

Offsetting of Financial Liabilities (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 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)	9 Months Ended
	Sep. 30, 2017
Employee Benefit Plans
Schedule of components of net periodic benefit cost	SERP SERP Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2017 2016 2017 2016 Net periodic benefit cost for the period: Service cost $ 19 $ 15 $ 39 $ 44 Interest cost 34 32 104 98 Expected return on plan assets — — — — Amortization of prior service cost — — — — Recognized actuarial loss — — — — Recognized curtailment loss — — — — Net periodic benefit cost $ 53 $ 47 $ 143 $ 142

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	9 Months Ended
	Sep. 30, 2017
Employee Stock Ownership Plan
Schedule of shares held by ESOP trust	September 30, December 31, 2017 2016 Allocated shares 392,351 372,997 Unearned shares 550,494 587,193 Total ESOP shares 942,845 960,190 Fair value of unearned shares, in thousands $ 17,379 $ 19,283

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Schedule of compensation expense and related tax benefit for all share-based awards	Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Compensation expense $ 58 $ 457 $ 95 $ 1,780 Income tax benefit 23 183 38 714
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 166,837 17.36 — 2,414 Forfeited — — — — Expired — — — — Options outstanding at September 30, 2017 539,593 $ 17.45 2.96 $ 7,616 Options outstanding at December 31, 2015 832,300 $ 17.42 4.70 $ 8,588 Granted — — — — Exercised 93,100 17.36 — 908 Forfeited — — — — Expired — — — — Options outstanding at September 30, 2016 739,200 $ 17.43 3.95 $ 8,302 Options vested and exercisable at September 30, 2017 $ $ 7,610
Summary of certain stock option activity	For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Intrinsic value of stock options exercised $ 744 $ 368 $ 2,414 $ 908 Proceeds received from stock options exercised 971 551 2,897 1,616 Tax benefits realized from stock options exercised 245 121 838 216 Total fair value of stock options that vested 38 3,923 38 3,923
Restricted Stock
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 9,604 29.53 Vested 1,200 26.23 Forfeited — — Nonvested at September 30, 2017 10,804 $ 29.16 Nonvested at December 31, 2015 114,542 $ 17.67 Granted — — Vested 112,142 17.49 Forfeited — — Nonvested at September 30, 2016 2,400 $ 26.23
Restricted Stock Units Based on a Performance Condition
Schedule of restricted stock award activity	Performance- Based Restricted Stock Units Weighted Based on a Average Grant Performance Date Fair Condition Value Nonvested at December 31, 2016 — $ — Granted 11,525 29.53 Vested — — Forfeited — — Nonvested at September 30, 2017 11,525 $ 29.53
Restricted Stock Units Based on a Market Condition
Schedule of restricted stock award activity	Performance- Based Restricted Monte Carlo Stock Units Valuation of Based on a the Company's Market Condition Stock Nonvested at December 31, 2016 — $ — Granted 2,881 24.44 Vested — — Forfeited — — Nonvested at September 30, 2017 2,881 $ 24.44

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share
Schedule of information used to compute basic and diluted earnings per share	Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands, except per share data) 2017 2016 2017 2016 Net income $ 4,173 $ 4,164 $ 12,795 $ 11,985 Income allocated to participating securities (10) (47) (15) (136) Net income available to common shareholders $ 4,163 $ 4,117 $ 12,780 $ 11,849 Weighted-average number of shares used in: Basic earnings per share 9,280,018 9,102,837 9,250,537 9,065,892 Dilutive common stock equivalents: Stock options and restricted stock units 241,183 222,669 285,338 214,368 Diluted earnings per share 9,521,201 9,325,506 9,535,875 9,280,260 Net income per common share, basic $ 0.45 $ 0.45 $ 1.38 $ 1.31 Net income per common share, diluted $ 0.44 $ 0.44 $ 1.34 $ 1.28

Other Comprehensive Income an33

Other Comprehensive Income and Loss (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2017 Balances at beginning of period $ 5,284 $ — $ 45 $ 5,329 Other comprehensive income, net of taxes — — (12) (12) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive income — — (12) (12) Balances at end of period $ 5,284 $ — $ 33 $ 5,317 Three months ended September 30, 2016 Balances at beginning of period $ 5,065 $ 101 $ 39 $ 5,205 Other comprehensive income, net of taxes — (45) (4) (49) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive income — (45) (4) (49) Balances at end of period $ 5,065 $ 56 $ 35 $ 5,156 Nine months ended September 30, 2017 Balances at beginning of period $ 5,284 $ — $ 32 $ 5,316 Other comprehensive loss, net of taxes — — 1 1 Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss — — 1 1 Balances at end of period $ 5,284 $ — $ 33 $ 5,317 Nine months ended September 30, 2016 Balances at beginning of period $ 5,044 $ 147 $ 45 $ 5,236 Other comprehensive loss (income), net of taxes 21 (91) (10) (80) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss (income) 21 (91) (10) (80) Balances at end of period $ 5,065 $ 56 $ 35 $ 5,156
Schedule of tax effect on each component of accumulated other comprehensive loss	Three Months Ended September 30, 2017 2016 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unfunded pension liability $ — $ — $ — $ — $ — $ — Noncredit related loss on trust preferred securities — — — (74) 29 (45) Unrealized loss on securities (21) 9 (12) (7) 3 (4) Total $ (21) $ 9 $ (12) $ (81) $ 32 $ (49) Nine Months Ended September 30, 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 — — — (150) 59 (91) Unrealized loss on securities 1 — 1 (17) 7 (10) Total $ 1 $ — $ 1 $ (167) $ 87 $ (80)

Fair Value of Financial Instr34

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2017 Assets Cash and cash equivalents $ 38,385 $ 38,385 $ 38,385 $ — $ — Investment securities available for sale 2,910 2,910 — 2,910 — Investment securities held to maturity 411,657 415,112 — 414,187 925 Loans held for sale 495 499 — 499 — Loans receivable, net 1,434,753 1,455,571 — — 1,455,571 FHLB stock 5,013 5,013 — 5,013 — FRB stock 3,103 3,103 — 3,103 — Accrued interest receivable 4,985 4,985 2 1,111 3,872 Interest rate contracts 2 2 — 2 — Liabilities Deposits 1,571,367 1,570,959 — 1,272,086 298,873 Advances from the Federal Home Loan Bank 69,000 68,933 — 68,933 — Securities sold under agreements to repurchase 55,000 54,986 — 54,986 — Accrued interest payable 412 412 — 174 238 Interest rate contracts 2 2 — 2 — 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 September 30, 2017 Interest rate contracts — assets $ — $ 2 $ — $ 2 Interest rate contracts — liabilities — (2) — (2) Available-for-sale investments — 2,910 — 2,910 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 (Dollars in thousands) Adjustment Date Level 1 Level 2 Level 3 Total Total Gains (Losses) September 30, 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) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Employee Stock Options | ASU 2016-09 Compensation - Stock Compensation
Recently Issued Accounting Pronouncements
Tax benefits realized from stock options exercised	$ 150,000	$ 541,000

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Cash and Cash Equivalents
Cash and due from banks	$ 10,118	$ 9,043
Interest-earning deposits in other banks	28,267	52,230
Cash and cash equivalents	$ 38,385	$ 61,273	$ 40,503	$ 65,919

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Fair Values of Available-for-Sale Securities (Details) $ in Thousands	Sep. 30, 2017USD ($)
Available-for-sale:
Amortized Cost	$ 2,920
Gross Unrealized Losses	(10)
Estimated Fair Value	2,910
U.S. government-sponsored mortgage-backed securities
Available-for-sale:
Amortized Cost	2,920
Gross Unrealized Losses	(10)
Estimated Fair Value	$ 2,910

Investment Securities - Amort39

Investment Securities - Amortized Cost and Fair Values of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Held-to-maturity:
Amortized Cost	$ 411,657	$ 407,656
Gross Unrealized Gains	7,707	7,290
Gross Unrealized Losses	(4,252)	(7,024)
Estimated Fair Value	415,112	407,922
U.S. government-sponsored mortgage-backed securities
Held-to-maturity:
Amortized Cost	411,065	406,498
Gross Unrealized Gains	7,374	7,285
Gross Unrealized Losses	(4,252)	(7,024)
Estimated Fair Value	414,187	406,759
Trust preferred securities
Held-to-maturity:
Amortized Cost	592	1,158
Gross Unrealized Gains	333	5
Estimated Fair Value	$ 925	$ 1,163

Investment Securities - Maturit

Investment Securities - Maturity Schedule of Available-for-Sale Securities (Details) $ in Thousands	Sep. 30, 2017USD ($)
Amortized Cost
Due after 10 years	$ 2,920
Amortized Cost	2,920
Estimated Fair Value
Due after 10 years	2,910
Estimated Fair Value	$ 2,910

Investment Securities - Matur41

Investment Securities - Maturity Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Held-to-maturity, Amortized Cost
Due within 5 years	$ 12
Due after 5 years through 10 years	50
Due after 10 years	411,595
Amortized Cost	411,657	$ 407,656
Held-to-maturity, Estimated Fair Value
Due within 5 years	13
Due after 5 years through 10 years	50
Due after 10 years	415,049
Estimated Fair Value	$ 415,112	$ 407,922

Investment Securities - Realize

Investment Securities - Realized Gains and Losses and Proceeds from Sales (Details) - U.S. government-sponsored mortgage-backed securities - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Held to maturity and trading securities
Realized gains and losses and the proceeds from sales of securities available for sale, held to maturity and trading
Proceeds from sales	$ 2,393	$ 801	$ 7,446	$ 3,923
Gross gains	$ 150	$ 60	$ 431	$ 250
Held-to-maturity debt securities | Minimum
Realized gains and losses and the proceeds from sales of securities available for sale, held to maturity and trading
Portion of outstanding purchased principal already collected	85.00%	85.00%	85.00%	85.00%

Investment Securities - Securit

Investment Securities - Securities Pledged (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Pledged investment securities
Investment securities pledged to secure public deposit, securities sold under agreement to repurchase and transaction clearing accounts	$ 275.6	$ 239.9

Investment Securities _ Availab

Investment Securities – Available-for-Sale Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands	Sep. 30, 2017USD ($)security
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months Fair Value	$ 2,910
Less Than 12 Months Unrealized Losses	$ 10
Total Number of Securities | security	1
Total Fair Value	$ 2,910
Total Unrealized Losses	$ 10

Investment Securities - Held-to

Investment Securities - Held-to-Maturity Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands	Sep. 30, 2017USD ($)security	Dec. 31, 2016USD ($)security
Investment Securities
Less Than 12 Months Fair Value	$ 117,700	$ 179,741
Less Than 12 Months Unrealized Losses	1,875	5,599
12 Months or Longer Fair Value	67,276	23,402
12 Months or Longer Unrealized Losses	$ 2,377	$ 1,425
Total Number of Securities | security	47	50
Total Fair Value	$ 184,976	$ 203,143
Total Unrealized Losses	$ 4,252	$ 7,024

Investment Securities - Trust P

Investment Securities - Trust Preferred Securities (Details)	69 Months Ended	117 Months Ended
	Sep. 30, 2017USD ($)Transactionsecurity	Sep. 30, 2017USD ($)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 | $	$ 592,000	$ 592,000

Investment Securities - Cumulat

Investment Securities - Cumulative Roll Forward of Credit Losses Recognized in Earnings (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 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		$ 56

Loans Receivable and Allowanc48

Loans Receivable and Allowance for Loan Losses - Components (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Real estate loans:
Total real estate loans	$ 1,435,335		$ 1,337,066
Other loans:
Total other loans	5,083		4,564
Less: Net unearned fees and discounts	(3,166)		(3,191)
Less: Allowance for loan losses	(2,499)	$ (2,457)	(2,452)	$ (2,362)	$ (2,276)	$ (2,166)
Total unearned fees, discounts and allowance for loan losses	(5,665)		(5,643)
Loans receivable, net	1,434,753		1,335,987
One- to four-family residential
Real estate loans:
Total real estate loans	1,390,037		1,289,364
Multi-family residential
Real estate loans:
Total real estate loans	9,334		9,551
Construction, Commercial and Other Mortgage Loans
Real estate loans:
Total real estate loans	22,490		23,346
Other loans:
Less: Allowance for loan losses	(572)	(556)	(519)	(480)	(567)	(517)
Home Equity Loans and Lines of Credit
Real estate loans:
Total real estate loans	13,474		14,805
Other loans:
Less: Allowance for loan losses	(1)	$ (1)	(2)	$ (2)	$ (3)	$ (3)
Loans on Deposit Accounts
Other loans:
Total other loans	285		204
Consumer and other
Other loans:
Total other loans	$ 4,798		$ 4,360

Loans Receivable and Allowanc49

Loans Receivable and Allowance for Loan Losses - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		15 Months Ended	30 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Jun. 30, 2016
Activity in allowance for loan losses
Balance, beginning of period	$ 2,457	$ 2,276	$ 2,452	$ 2,166	$ 2,276
Provision (reversal of provision) for loan losses	54	107	2	219
Allowance for loan losses on loans receivable after provision (reversal of allowance)	2,511	2,383	2,454	2,385
Charge-offs	(12)	(38)	(35)	(56)
Recoveries		17	80	33
Net recoveries (charge-offs)	(12)	(21)	45	(23)
Balance, end of period	2,499	2,362	2,499	2,362	$ 2,499	$ 2,276
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	1,602	1,444	1,594	1,380	$ 1,444
Provision (reversal of provision) for loan losses	30	133	(26)	190
Allowance for loan losses on loans receivable after provision (reversal of allowance)	1,632	1,577	1,568	1,570
Charge-offs		(33)	(11)	(33)
Recoveries		15	75	22
Net recoveries (charge-offs)		(18)	64	(11)
Balance, end of period	1,632	1,559	1,632	1,559	1,632	$ 1,444
Construction, Commercial and Other Mortgage Loans
Activity in allowance for loan losses
Balance, beginning of period	556	567	519	517	567
Provision (reversal of provision) for loan losses	16	(87)	53	(37)
Allowance for loan losses on loans receivable after provision (reversal of allowance)	572	480	572	480
Balance, end of period	572	480	572	480	572	567
Home Equity Loans and Lines of Credit
Activity in allowance for loan losses
Balance, beginning of period	1	3	2	3	3
Provision (reversal of provision) for loan losses		(1)	(1)	(1)
Allowance for loan losses on loans receivable after provision (reversal of allowance)	1	2	1	2
Balance, end of period	1	2	1	2	1	3
Consumer and other loans
Activity in allowance for loan losses
Balance, beginning of period	53	56	115	72	56
Provision (reversal of provision) for loan losses	18	54	(37)	47
Allowance for loan losses on loans receivable after provision (reversal of allowance)	71	110	78	119
Charge-offs	(12)	(5)	(24)	(23)
Recoveries		2	5	11
Net recoveries (charge-offs)	(12)	(3)	(19)	(12)
Balance, end of period	59	107	59	107	59	56
Unallocated
Activity in allowance for loan losses
Balance, beginning of period	245	206	222	194	206
Provision (reversal of provision) for loan losses	(10)	8	13	20
Allowance for loan losses on loans receivable after provision (reversal of allowance)	235	214	235	214
Balance, end of period	$ 235	$ 214	$ 235	$ 214	$ 235	$ 206

Loans Receivable and Allowanc50

Loans Receivable and Allowance for Loan Losses - Balance in Allowance for Loan Losses and Recorded Investment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Allowance for loan losses:
Collectively evaluated for impairment	$ 2,499		$ 2,452
Total ending allowance balance	2,499	$ 2,457	2,452	$ 2,362	$ 2,276	$ 2,166
Loans:
Individually evaluated for impairment	4,269		5,744
Collectively evaluated for impairment	1,432,983		1,332,695
Total ending loan balance	1,437,252		1,338,439
Residential Mortgage
Allowance for loan losses:
Collectively evaluated for impairment	1,632		1,594
Total ending allowance balance	1,632	1,602	1,594	1,559	1,444	1,380
Loans:
Individually evaluated for impairment	4,099		5,587
Collectively evaluated for impairment	1,392,170		1,290,209
Total ending loan balance	1,396,269		1,295,796
Construction, Commercial and Other Mortgage Loans
Allowance for loan losses:
Collectively evaluated for impairment	572		519
Total ending allowance balance	572	556	519	480	567	517
Loans:
Collectively evaluated for impairment	22,405		23,256
Total ending loan balance	22,405		23,256
Home Equity Loans and Lines of Credit
Allowance for loan losses:
Collectively evaluated for impairment	1		2
Total ending allowance balance	1	1	2	2	3	3
Loans:
Individually evaluated for impairment	170		156
Collectively evaluated for impairment	13,310		14,656
Total ending loan balance	13,480		14,812
Consumer and other loans
Allowance for loan losses:
Collectively evaluated for impairment	59		115
Total ending allowance balance	59	53	115	107	56	72
Loans:
Individually evaluated for impairment			1
Collectively evaluated for impairment	5,098		4,574
Total ending loan balance	5,098		4,575
Unallocated
Allowance for loan losses:
Collectively evaluated for impairment	235		222
Total ending allowance balance	$ 235	$ 245	$ 222	$ 214	$ 206	$ 194

Loans Receivable and Allowanc51

Loans Receivable and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Impaired loans
Average Recorded Investment	$ 4,307	$ 6,098	$ 4,380	$ 6,163
Interest Income Recognized	13	19	43	57
One- to four-family residential
Impaired loans
Average Recorded Investment	4,135	5,936	4,203	6,000
Interest Income Recognized	13	19	43	57
Home Equity Loans and Lines of Credit
Impaired loans
Average Recorded Investment	172	$ 162	177	$ 163
Individually Evaluated for Impairment
Impaired loans
Recorded Investment	4,269		4,269		$ 5,744
Unpaid Principal Balance	5,205		5,205		6,674
Loans individually evaluated for impairment with a related allowance for loan loss	0		0		0
Individually Evaluated for Impairment | One- to four-family residential
Impaired loans
Recorded Investment	4,099		4,099		5,587
Unpaid Principal Balance	4,976		4,976		6,469
Individually Evaluated for Impairment | Home Equity Loans and Lines of Credit
Impaired loans
Recorded Investment	170		170		156
Unpaid Principal Balance	$ 229		$ 229		204
Individually Evaluated for Impairment | Consumer and other loans
Impaired loans
Recorded Investment					1
Unpaid Principal Balance					$ 1

Loans Receivable and Allowanc52

Loans Receivable and Allowance for Loan Losses - Aging of Loans and Accrual Status (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 1,135	$ 1,780
Loans Not Past Due	1,436,117	1,336,659
Total ending loan balance	1,437,252	1,338,439
Nonaccrual Loans	3,349	4,559
One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,090	1,676
Loans Not Past Due	1,385,864	1,284,590
Total ending loan balance	1,386,954	1,286,266
Nonaccrual Loans	3,179	4,402
Multi-family residential
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	9,315	9,530
Total ending loan balance	9,315	9,530
Construction, Commercial and Other Mortgage Loans
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	22,405	23,256
Total ending loan balance	22,405	23,256
Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	41	100
Loans Not Past Due	13,439	14,712
Total ending loan balance	13,480	14,812
Nonaccrual Loans	170	156
Loans on Deposit Accounts
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	285	204
Total ending loan balance	285	204
Consumer and other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4	4
Loans Not Past Due	4,809	4,367
Total ending loan balance	4,813	4,371
Nonaccrual Loans		1
30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	439	204
30 - 59 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	438	185
30 - 59 Days Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due		16
30 - 59 Days Past Due | Consumer and other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1	3
60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3	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
60 - 89 Days Past Due | Consumer and other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3
90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	693	1,408
90 Days or Greater Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	652	1,358
90 Days or Greater Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 41	49
90 Days or Greater Past Due | Consumer and other
Financing Receivable, Recorded Investment, Past Due
Total Past Due		$ 1

Loans Receivable and Allowanc53

Loans Receivable and Allowance for Loan Losses - Delinquent and Nonaccrual Loans (Details)	9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)loan	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Nonaccrual Loans	$ 3,349,000		$ 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	$ 3,300,000		$ 4,600,000
Interest collected on nonaccrual loans recorded as a reduction of principal	137,000	$ 149,000
Non accrual loans, additional interest income that would have been recognized had the loans been accruing interest	$ 169,000	$ 211,000

Loans Receivable and Allowanc54

Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Details)	9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)loan	Sep. 30, 2016loan	Sep. 30, 2017USD ($)loan	Dec. 31, 2016USD ($)loan
Troubled debt restructurings
Number of loans subsequently defaulted | loan			0
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 2,113,000		$ 2,113,000	$ 2,921,000
Real estate owned	$ 0		$ 0	$ 0
Accruing interest
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	4		4	5
Loans modified by troubled debt restructurings considered impaired	$ 920,000		$ 920,000	$ 1,185,000
Non Accrual Loans
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	6		6	8
Loans modified by troubled debt restructurings considered impaired	$ 1,193,000		$ 1,193,000	$ 1,736,000
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
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
Loans modified by troubled debt restructurings considered impaired	$ 2,017,000		$ 2,017,000	$ 2,814,000
Mortgage loans in process of foreclosure, number of contracts | loan	3		3	4
Mortgage loans in process of foreclosure, total value	$ 652,000		$ 652,000	$ 702,000
One- to four-family residential | Accruing interest
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	4		4	5
Loans modified by troubled debt restructurings considered impaired	$ 920,000		$ 920,000	$ 1,185,000
One- to four-family residential | 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	$ 1,097,000		$ 1,097,000	$ 1,629,000
Home Equity Loans and Lines of Credit
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 96,000		$ 96,000	$ 107,000
Mortgage loans in process of foreclosure, number of contracts | loan	1		1
Mortgage loans in process of foreclosure, total value	$ 41,000		$ 41,000
Home Equity Loans and Lines of Credit | Non Accrual Loans
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	1		1	1
Loans modified by troubled debt restructurings considered impaired	$ 96,000		$ 96,000	$ 107,000

Loans Receivable and Allowanc55

Loans Receivable and Allowance for Loan Losses - Collateral, Sales, Serviced for Others, Directors and Executive Officers (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)loan	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Loans serviced for others	$ 37,500,000		$ 37,500,000		$ 41,500,000
Loans serviced for others, securitization for which the company continues to hold the related mortgage-backed securities	2,000,000		2,000,000		$ 2,200,000
Loans serviced for others, amount of contractually specified servicing fees earned	$ 26,000	$ 31,000	$ 80,000	$ 99,000
Mortgage Loans on Real Estate | Maximum
Accounts, Notes, Loans and Financing Receivable
Loan to value ratio (as a percent)	80.00%		80.00%
Residential Mortgage Loans Held For Sale
Accounts, Notes, Loans and Financing Receivable
Residential mortgage loans sold, loan amount			$ 20,300,000	38,600,000
Residential mortgage loans sold, recognized gains			$ 154,000	$ 304,000
Number of loans | loan			1		5
Residential mortgage loans held for sale	$ 495,000		$ 495,000		$ 1,600,000

Securities Sold Under Agreeme56

Securities Sold Under Agreements to Repurchase - Summary of Repurchase Liability by Maturity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 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 Agreeme57

Securities Sold Under Agreements to Repurchase - Summary of Securities Pledged (Details) - Maturing Over 90 days $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Securities sold under agreements to repurchase
Carrying Value of Securities	$ 61,372
Fair Value of Securities	61,614
Repurchase Liability	55,000
Amount at Risk	$ 6,614
Weighted Average Months to Maturity	11 months

Offsetting of Financial Liabi58

Offsetting of Financial Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net periodic benefit cost for the year:
Service cost	$ 19	$ 15	$ 39	$ 44
Interest cost	34	32	104	98
Net periodic benefit cost	$ 53	$ 47	$ 143	$ 142
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	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Employee Stock Ownership Plan
ESOP expense				$ 1,144,000	$ 979,000
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		$ 298,000	$ 283,000	$ 923,000	$ 804,000
Allocated shares		392,351		392,351		372,997
Unearned shares		550,494		550,494		587,193
Total ESOP shares		942,845		942,845		960,190
Fair value of unearned shares, in thousands		$ 17,379,000		$ 17,379,000		$ 19,283,000
ESOP | Prime rate
Employee Stock Ownership Plan
Variable interest rate				Wall Street Journal Prime Rate

Employee Stock Ownership Plan61

Employee Stock Ownership Plan - Nonqualified ESOP Restoration Plan (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
ESOP restoration | Certain executives
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits
Accrued benefits (reversal of accrual)	$ 97,000	$ 122,000	$ 161,000	$ 244,000

Share-Based Compensation - Plan

Share-Based Compensation - Plan Provisions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-Based Compensation
Compensation expense	$ 58	$ 457	$ 95	$ 1,780
Income tax benefit	$ 23	$ 183	$ 38	$ 714
2010 Equity Incentive Plan
Share-Based Compensation
Number of shares authorized	1,862,637		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		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Common Stock
Stock option activity
Exercised (in shares)			166,837	93,100
Stock option activity
Shares of common stock issued in exchange for stock options and common shares			75,707
Shares of common stock exchanged with stock options			91,130
Stock Options
Stock option activity
Balance at beginning of period (in shares)			706,430	832,300	832,300
Exercised (in shares)			166,837	93,100
Balance at end of period (in shares)	539,593	739,200	539,593	739,200	706,430	832,300
Options vested and exercisable (in shares)	538,393		538,393
Weighted Average Exercise Price
Balance at beginning of period (in dollars per share)			$ 17.43	$ 17.42	$ 17.42
Exercised (in dollars per share)			17.36	17.36
Balance at end of period (in dollars per share)	$ 17.45	$ 17.43	17.45	$ 17.43	$ 17.43	$ 17.42
Options vested and exercisable (in dollars per share)	$ 17.44		$ 17.44
Remaining Contractual Life
Options outstanding			2 years 11 months 16 days	3 years 11 months 12 days	3 years 8 months 12 days	4 years 8 months 12 days
Options vested and exercisable			2 years 11 months 12 days
Aggregate Intrinsic Value
Beginning of year			$ 10,884,000	$ 8,588,000	$ 8,588,000
Exercised	$ 744,000	$ 368,000	2,414,000	908,000
End of year	7,616,000	8,302,000	7,616,000	8,302,000	$ 10,884,000	$ 8,588,000
Options vested and exercisable	7,610,000		7,610,000
Stock option activity
Intrinsic value of stock options exercised	744,000	368,000	2,414,000	908,000
Proceeds received from stock options exercised	971,000	551,000	2,897,000	1,616,000
Tax benefits realized from stock options exercised	245,000	121,000	838,000	216,000
Total fair value of stock options that vested	38,000	$ 3,923,000	38,000	$ 3,923,000
Unrecognized compensation costs	$ 4,000		$ 4,000
Unrecognized compensation costs, period of recognition			3 years
Stock Options | Common Stock
Stock option activity
Exercised (in shares)			166,837

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Awards (Details) - USD ($)	May 25, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Restricted Stock
Restricted Stock Awards
Non-vested at beginning of period (in shares)		2,400	114,542
Granted (in shares)		9,604	0
Vested (in shares)		1,200	112,142
Non-vested at end of period (in shares)		10,804	2,400
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)		29.53	0
Vested (in dollars per share)		26.23	17.49
Non-vested at end of period (in dollars per share)		$ 29.16	$ 26.23
Unrecognized compensation
Unrecognized compensation costs		$ 278,000
Vesting period		3 years
Restricted Stock Units Based on a Performance Condition
Restricted Stock Awards
Non-vested at beginning of period (in shares)		0
Granted (in shares)		11,525
Non-vested at end of period (in shares)		11,525
Weighted Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 0
Granted (in dollars per share)		29.53
Non-vested at end of period (in dollars per share)		$ 29.53
Unrecognized compensation
Unrecognized compensation costs		$ 215,000
Unrecognized compensation costs, period of recognition		3 years
Restricted Stock Units Based on a Performance Condition | Minimum
Unrecognized compensation
Shares vesting as a percentage of target		0.00%
Restricted Stock Units Based on a Performance Condition | Maximum
Unrecognized compensation
Shares vesting as a percentage of target		150.00%
Restricted Stock Units Based on a Market Condition
Restricted Stock Awards
Non-vested at beginning of period (in shares)		0
Granted (in shares)		2,881
Non-vested at end of period (in shares)		2,881
Weighted Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 0
Granted (in dollars per share)		24.44
Non-vested at end of period (in dollars per share)		$ 24.44
Unrecognized compensation
Unrecognized compensation costs		$ 41,000
Unrecognized compensation costs, period of recognition		3 years
Assumptions used in the Monte Carlo valuation of PRSUs
Term used for risk-free rate and historical volatility	2 years 7 months 6 days
Risk-free interest rate (as a percent)	1.40%
Closing stock price (in dollars per share)	$ 29.53			$ 32.84
Annualized volatility (as a percent)	15.70%
Annual dividend preceding the grant date (in dollars per share)	$ 0.80

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share
Net income	$ 4,173	$ 4,164	$ 12,795	$ 11,985
Income allotted to participating securities	(10)	(47)	(15)	(136)
Net income available to common shareholders	$ 4,163	$ 4,117	$ 12,780	$ 11,849
Weighted-average number of shares used in:
Basic earnings per share (in shares)	9,280,018	9,102,837	9,250,537	9,065,892
Dilutive common stock equivalents:
Stock options and restricted stock units (in shares)	241,183	222,669	285,338	214,368
Diluted earnings per share (in shares)	9,521,201	9,325,506	9,535,875	9,280,260
Net income per common share, basic (in dollars per share)	$ 0.45	$ 0.45	$ 1.38	$ 1.31
Net income per common share, diluted (in dollars per share)	$ 0.44	$ 0.44	$ 1.34	$ 1.28

Other Comprehensive Income an66

Other Comprehensive Income and Loss - Changes in Components of Accumulated Other Comprehensive Income and Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 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)	$ (12)	$ (49)	1	(80)
Balance at end of period	(237,292)	(228,418)	(237,292)	(228,418)
Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period	5,329	5,205	5,316	5,236
Other comprehensive loss (income), net of taxes	(12)	(49)	1	(80)
Net current period other comprehensive loss (income)	(12)	(49)	1	(80)
Balance at end of period	5,317	5,156	5,317	5,156
Unfunded Pension Liability
Changes in the components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period	5,284	5,065	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	5,284	5,065
Other-than-temporarily impaired securities
Changes in the components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period		101		147
Other comprehensive loss (income), net of taxes		(45)		(91)
Net current period other comprehensive loss (income)		(45)		(91)
Balance at end of period		56		56
Unrealized Loss on Securities
Changes in the components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period	45	39	32	45
Other comprehensive loss (income), net of taxes	(12)	(4)	1	(10)
Net current period other comprehensive loss (income)	(12)	(4)	1	(10)
Balance at end of period	$ 33	$ 35	$ 33	$ 35

Other Comprehensive Income an67

Other Comprehensive Income and Loss - Tax Effect on Each Component (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Tax effect on each component of other comprehensive loss
Pretax amount	$ (21)	$ (81)	$ 1	$ (167)
Tax	9	32		87
Net current period other comprehensive loss (income)	(12)	(49)	1	(80)
Unfunded Pension Liability
Tax effect on each component of other comprehensive loss
Tax				21
Net current period other comprehensive loss (income)				21
Other-than-temporarily impaired securities
Tax effect on each component of other comprehensive loss
Pretax amount		(74)		(150)
Tax		29		59
Net current period other comprehensive loss (income)		(45)		(91)
Unrealized Loss on Securities
Tax effect on each component of other comprehensive loss
Pretax amount	(21)	(7)	1	(17)
Tax	9	3		7
Net current period other comprehensive loss (income)	$ (12)	$ (4)	$ 1	$ (10)

Fair Value of Financial Instr68

Fair Value of Financial Instruments - Trust Preferred Securities (Details) - Trust preferred securities	9 Months Ended	12 Months Ended	69 Months Ended	117 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2017Transaction	Sep. 30, 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			69 months
Securities issued | shares				0
Fair Value, Measurements, Nonrecurring | Level 3 | Discounted cash flow model | 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 Instr69

Fair Value of Financial Instruments - Estimated Fair Values (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Investment securities available for sale	$ 2,910
Investment securities held to maturity	415,112	$ 407,922
Carrying Amount
Assets
Cash and cash equivalents	38,385	61,273
Investment securities available for sale	2,910
Investment securities held to maturity	411,657	407,656
Loans held for sale	495	1,601
Loans receivable, net	1,434,753	1,335,987
FHLB stock	5,013	4,945
FRB stock	3,103	3,095
Accrued interest receivable	4,985	4,732
Interest rate contracts	2	104
Liabilities
Deposits	1,571,367	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	412	218
Interest rate contracts	2	104
Estimated Fair Value
Assets
Cash and cash equivalents	38,385	61,273
Investment securities available for sale	2,910
Investment securities held to maturity	415,112	407,922
Loans held for sale	499	1,601
Loans receivable, net	1,455,571	1,352,137
FHLB stock	5,013	4,945
FRB stock	3,103	3,095
Accrued interest receivable	4,985	4,732
Interest rate contracts	2	104
Liabilities
Deposits	1,570,959	1,493,094
Advances from the Federal Home Loan Bank	68,933	69,068
Securities sold under agreements to repurchase	54,986	55,123
Accrued interest payable	412	218
Interest rate contracts	2	104
Estimated Fair Value | Level 1
Assets
Cash and cash equivalents	38,385	61,273
Accrued interest receivable	2	10
Estimated Fair Value | Level 2
Assets
Investment securities available for sale	2,910
Investment securities held to maturity	414,187	406,759
Loans held for sale	499	1,601
FHLB stock	5,013	4,945
FRB stock	3,103	3,095
Accrued interest receivable	1,111	1,064
Interest rate contracts	2	104
Liabilities
Deposits	1,272,086	1,257,157
Advances from the Federal Home Loan Bank	68,933	69,068
Securities sold under agreements to repurchase	54,986	55,123
Accrued interest payable	174	172
Interest rate contracts	2	104
Estimated Fair Value | Level 3
Assets
Investment securities held to maturity	925	1,163
Loans receivable, net	1,455,571	1,352,137
Accrued interest receivable	3,872	3,658
Liabilities
Deposits	298,873	235,937
Accrued interest payable	$ 238	$ 46

Fair Value of Financial Instr70

Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets and Liabilities Measured at Fair Value on Recurring Basis
Available-for-sale investments	$ 2,910
Fair Value, Measurements, Recurring
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	2	$ 104
Interest rate contracts - liabilities	(2)	(104)
Available-for-sale investments	2,910
Fair Value, Measurements, Recurring | Level 2
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	2	104
Interest rate contracts - liabilities	(2)	$ (104)
Available-for-sale investments	$ 2,910

Fair Value of Financial Instr71

Fair Value of Financial Instruments - Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 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 Instr72

Fair Value of Financial Instruments - Significant Unobservable Inputs (Details) - Fair Value, Measurements, Nonrecurring - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 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 model | 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 model | 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 model | 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 model | 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)	Oct. 25, 2017$ / shares
Subsequent event
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)	$ 0.20