Territorial Bancorp (TBNK) 10-K 15 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Feb. 28, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	Territorial Bancorp Inc.
Entity Central Index Key	1,447,051
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 266
Entity Common Stock, Shares Outstanding		9,731,022
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 32,089	$ 61,273
Investment securities available for sale	2,851
Investment securities held to maturity, at amortized cost (fair value of $406,663 and $407,922 at December 31, 2017 and December 31, 2016, respectively)	404,792	407,656
Loans held for sale	403	1,601
Loans receivable, net	1,488,971	1,335,987
Federal Home Loan Bank stock, at cost	6,541	4,945
Federal Reserve Bank stock, at cost	3,103	3,095
Accrued interest receivable	5,142	4,732
Premises and equipment, net	5,721	4,327
Bank-owned life insurance	44,201	43,294
Income taxes receivable	1,571	122
Deferred income tax assets, net	4,609	7,905
Prepaid expenses and other assets	3,852	2,625
Total assets	2,003,846	1,877,562
Liabilities:
Deposits	1,597,295	1,493,200
Advances from the Federal Home Loan Bank	107,200	69,000
Securities sold under agreements to repurchase	30,000	55,000
Accounts payable and accrued expenses	26,390	23,258
Income taxes payable	1,483	1,616
Advance payments by borrowers for taxes and insurance	6,624	5,702
Total liabilities	1,768,992	1,647,776
Stockholders' Equity:
Preferred stock, $0.01 par value; authorized 50,000,000 shares, no shares issued or outstanding
Common stock, $0.01 par value; authorized 100,000,000 shares; issued and outstanding 9,915,058 and 9,778,974 shares at December 31, 2017 and December 31, 2016, respectively	99	98
Additional paid-in capital	73,050	71,914
Unearned ESOP shares	(5,383)	(5,872)
Retained earnings	172,782	168,962
Accumulated other comprehensive loss	(5,694)	(5,316)
Total stockholders' equity	234,854	229,786
Total liabilities and stockholders' equity	$ 2,003,846	$ 1,877,562

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Consolidated Balance Sheets
Investment securities held to maturity, fair value (in dollars)	$ 406,663	$ 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	9,915,058	9,778,974
Common stock, shares outstanding	9,915,058	9,778,974

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest income:
Loans	$ 55,144	$ 51,168	$ 45,903
Investment securities	12,526	14,365	16,873
Other investments	663	540	316
Total interest income	68,333	66,073	63,092
Interest expense:
Deposits	7,666	5,933	4,821
Advances from the Federal Home Loan Bank	1,105	1,035	697
Securities sold under agreements to repurchase	818	876	997
Total interest expense	9,589	7,844	6,515
Net interest income	58,744	58,229	56,577
Provision for loan losses	52	310	455
Net interest income after provision for loan losses	58,692	57,919	56,122
Noninterest income:
Service fees on loan and deposit accounts	1,962	1,960	2,161
Income on bank-owned life insurance	907	966	1,026
Gain on sale of investment securities	431	370	701
Gain on sale of loans	199	406	503
Other	347	392	520
Total noninterest income	3,846	4,094	4,911
Noninterest expense:
Salaries and employee benefits	21,614	20,591	21,497
Occupancy	5,937	5,749	5,809
Equipment	3,614	3,566	3,894
Federal deposit insurance premiums	605	743	857
Other general and administrative expenses	4,704	4,230	4,442
Total noninterest expense	36,474	34,879	36,499
Income before income taxes	26,064	27,134	24,534
Income taxes	11,102	10,787	9,786
Net income	$ 14,962	$ 16,347	$ 14,748
Basic earnings per share (in dollars per share)	$ 1.61	$ 1.78	$ 1.59
Diluted earnings per share (in dollars per share)	1.57	1.74	1.56
Cash dividends declared per common share (in dollars per share)	$ 1.20	$ 0.92	$ 0.76
Basic weighted-average shares outstanding (in shares)	9,273,783	9,093,385	9,073,015
Diluted weighted-average shares outstanding (in shares)	9,532,724	9,311,975	9,263,267

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Comprehensive Income
Net income	$ 14,962	$ 16,347	$ 14,748
Change in unfunded pension liability	(373)	(240)	(12)
Change in unrealized loss on securities	(5)	13	27
Change in noncredit related loss on trust preferred securities		147	137
Other comprehensive income (loss), net of tax	(378)	(80)	152
Comprehensive income	$ 14,584	$ 16,267	$ 14,900

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, 2014	$ 99	$ 75,229	$ (6,851)	$ 153,289	$ (5,388)	$ 216,378
Increase (Decrease) in Stockholders' Equity
Net income				14,748		14,748
Other comprehensive income (loss)					152	152
Cash dividends paid ($1.20 per share, $0.92 per share and $0.76 per share for the years ended December 31, 2017, 2016 and 2015 respectively)				(7,013)		(7,013)
Share-based compensation	1	3,085				3,086
Allocation of ESOP shares (48,932 shares for the years ended December 31, 2017, 2016 and 2015 respectively)		720	490			1,210
Repurchase of company common stock (160,003 shares, 118,723 shares and 373,711 shares for the years ended December 31, 2017, 2016 and 2015, respectively)	(4)	(8,933)				(8,937)
Exercise of options for common stock (294,887 shares, 125,870 shares and 1,000 shares for the years ended December 31, 2017, 2016 and 2015, respectively)		17				17
Balance at Dec. 31, 2015	96	70,118	(6,361)	161,024	(5,236)	219,641
Increase (Decrease) in Stockholders' Equity
Net income				16,347		16,347
Other comprehensive income (loss)					(80)	(80)
Cash dividends paid ($1.20 per share, $0.92 per share and $0.76 per share for the years ended December 31, 2017, 2016 and 2015 respectively)				(8,409)		(8,409)
Share-based compensation	1	2,041				2,042
Allocation of ESOP shares (48,932 shares for the years ended December 31, 2017, 2016 and 2015 respectively)		864	489			1,353
Repurchase of company common stock (160,003 shares, 118,723 shares and 373,711 shares for the years ended December 31, 2017, 2016 and 2015, respectively)	(1)	(3,293)				(3,294)
Exercise of options for common stock (294,887 shares, 125,870 shares and 1,000 shares for the years ended December 31, 2017, 2016 and 2015, respectively)	2	2,184				2,186
Balance at Dec. 31, 2016	98	71,914	(5,872)	168,962	(5,316)	229,786
Increase (Decrease) in Stockholders' Equity
Net income				14,962		14,962
Other comprehensive income (loss)					(378)	(378)
Cash dividends paid ($1.20 per share, $0.92 per share and $0.76 per share for the years ended December 31, 2017, 2016 and 2015 respectively)				(11,142)		(11,142)
Share-based compensation		106				106
Allocation of ESOP shares (48,932 shares for the years ended December 31, 2017, 2016 and 2015 respectively)		1,040	489			1,529
Repurchase of company common stock (160,003 shares, 118,723 shares and 373,711 shares for the years ended December 31, 2017, 2016 and 2015, respectively)	(2)	(5,127)				(5,129)
Exercise of options for common stock (294,887 shares, 125,870 shares and 1,000 shares for the years ended December 31, 2017, 2016 and 2015, respectively)	3	5,117				5,120
Balance at Dec. 31, 2017	$ 99	$ 73,050	$ (5,383)	$ 172,782	$ (5,694)	$ 234,854

Consolidated Statements of Sto7

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Stockholders' Equity, Share Data
Cash dividends paid (in dollars per share)	$ 1.2	$ 0.92	$ 0.76
Common Stock
Consolidated Statements of Stockholders' Equity, Share Data
Allocation of ESOP shares, shares	48,932	48,932	48,932
Repurchase of company common stock, shares	160,003	118,723	373,711
Exercise of options for common stock, shares	294,887	125,870	1,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 14,962	$ 16,347	$ 14,748
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	52	310	455
Depreciation and amortization	1,129	1,139	1,296
Deferred income tax expense (benefit)	3,436	1,490	(2,223)
Amortization of fees, discounts, and premiums	(478)	(715)	(492)
Origination of loans held for sale	(23,665)	(49,157)	(57,337)
Proceeds from sales of loans held for sale	25,063	49,207	56,493
Gain on sale of loans, net	(199)	(406)	(503)
Net gain on sale of real estate owned			(12)
Gain on sale of investment securities held to maturity	(431)	(370)	(701)
Net loss on disposal of premises and equipment	24		4
ESOP expense	1,529	1,353	1,210
Share-based compensation expense	106	2,042	3,086
Increase in accrued interest receivable	(410)	(48)	(248)
Net increase in bank-owned life insurance	(907)	(966)	(1,025)
Net increase in prepaid expenses and other assets	(1,227)	(355)	(366)
Net increase (decrease) in accounts payable and accrued expenses	2,604	(1,081)	249
Net increase in advance payments by borrowers for taxes and insurance	922	578	1,208
Net increase in income taxes receivable	(1,449)	(122)
Net increase (decrease) in income taxes payable	(133)	(479)	1,269
Net cash from operating activities	20,928	18,767	17,111
Cash flows from investing activities:
Purchases of investment securities held to maturity	(56,899)	(3,803)	(11,606)
Purchases of investment securities available for sale	(2,970)
Principal repayments on investment securities held to maturity	52,831	83,234	85,802
Principal repayments on investment securities available for sale	99
Proceeds from sale of investment securities held to maturity	7,446	5,462	7,718
Loan originations, net of principal repayments on loans receivable	(152,631)	(146,095)	(220,215)
Purchases of Federal Home Loan Bank stock	(5,929)	(1,075)	(3,120)
Proceeds from redemption of Federal Home Loan Bank stock	4,333	920	9,564
Purchases of Federal Reserve Bank stock	(8)	(73)	(97)
Proceeds from sale of real estate owned			204
Purchases of premises and equipment	(2,547)	(563)	(604)
Net cash from investing activities	(156,275)	(61,993)	(132,354)
Cash flows from financing activities:
Net increase in deposits	104,095	48,097	85,424
Proceeds from advances from the Federal Home Loan Bank	144,525	23,000	120,000
Repayments of advances from the Federal Home Loan Bank	(106,325)	(23,000)	(66,000)
Proceeds from securities sold under agreements to repurchase			30,000
Repayments of securities sold under agreements to repurchase	(25,000)		(47,000)
Purchases of Fed Funds	10	10	10
Sales of Fed Funds	(10)	(10)	(10)
Proceeds from exercise of stock options		566	17
Repurchases of common stock	(9)	(1,674)	(9,326)
Cash dividends paid	(11,123)	(8,409)	(7,013)
Net cash from financing activities	106,163	38,580	106,102
Net decrease in cash and cash equivalents	(29,184)	(4,646)	(9,141)
Cash and cash equivalents at beginning of the period	61,273	65,919	75,060
Cash and cash equivalents at end of the period	32,089	61,273	65,919
Cash paid for:
Interest on deposits and borrowings	9,231	7,863	6,648
Income taxes	9,319	9,645	10,324
Supplemental disclosure of noncash investing and financing activities:
Company stock acquired through stock swap and net settlement transactions	5,120	1,620
Loans transferred to real estate owned			192
Investments purchased, not settled			1,200
Investments purchased prior period, settled current period		$ 1,200
Company stock repurchased prior period, settled current period			$ 389
Dividends declared, not yet paid	$ 19

Organization

Organization	12 Months Ended
	Dec. 31, 2017
Organization
Organization	(1) 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, 2017 was $11.0 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies (a) Description of Business Territorial Bancorp Inc. (the Company), through its wholly-owned subsidiary, Territorial Savings Bank (the Bank), provides loan and deposit products and services primarily to individual customers through 29 branches located throughout Hawaii. We deal primarily in residential mortgage loans in the State of Hawaii. The Company’s earnings depend primarily on its net interest income, which is the difference between the interest income earned on interest-earning assets (loans receivable and investments) and the interest expense incurred on interest-bearing liabilities (deposit liabilities and borrowings). Deposits traditionally have been the principal source of the Bank’s funds for use in lending, meeting liquidity requirements, and making investments. The Company also derives funds from receipt of interest and principal repayments on outstanding loans receivable and investments, borrowings from the Federal Home Loan Bank (FHLB), securities sold under agreements to repurchase, and proceeds from issuance of common stock. (b) Principles of Consolidation The consolidated financial statements include the accounts and results of operations of Territorial Bancorp Inc. and Territorial Savings Bank and its wholly-owned subsidiaries, Territorial Real Estate Co., Inc. and Territorial Financial Services, Inc. Significant intercompany balances and transactions have been eliminated in consolidation. (c) Cash and Cash Equivalents Cash and cash equivalents includes cash and due from banks, interest-bearing deposits in other banks, federal funds sold, and short-term, highly liquid investments with original maturities of three months or less. (d) Investment Securities The Company classifies and accounts for its investment securities as follows: (1) held-to-maturity debt securities in which the Company has the positive intent and ability to hold to maturity are reported at amortized cost; (2) trading securities that are purchased for the purpose of selling in the near term are reported at fair value, with unrealized gains and losses included in current earnings; and (3) available-for-sale securities not classified as either held-to-maturity or trading securities are reported at fair value, with unrealized gains and losses excluded from current earnings and reported as a separate component of equity. At December 31, 2017, the Company classified all of its investments, except $2.9 million of securities, as held-to-maturity. At December 31, 2016, the Company classified all of its investments as held-to-maturity. A decline in the market value of any available-for-sale or held-to-maturity security below cost, that is deemed to be other than temporary, results in an impairment to reduce the carrying amount to fair value. To determine whether impairment is other than temporary, the Company considers the type of the investment, the cause of the decline in value and the amount and duration of the decline in value. It also considers whether it has the intent and ability not to sell and would not be required to sell for a sufficient period of time to recover the remaining amortized cost basis. Gains or losses on the sale of investment securities are computed using the specific-identification method. The Company amortizes premiums and accretes discounts associated with investment securities using the interest method over the contractual life of the respective investment security. Such amortization and accretion is included in the interest income line item in the consolidated statements of income. Interest income is recognized when earned. (e) Loans Receivable This policy applies to all loan classes. Loans receivable are stated at the principal amount outstanding, less the allowance for loan losses, loan origination fees and costs, and commitment fees. Interest on loans receivable is accrued as earned. The Company has a policy of placing loans on a nonaccrual basis when 90 days or more contractually delinquent or when, in the opinion of management, collection of all or part of the principal balance appears doubtful. For nonaccrual loans, the Company records payments received as a reduction in principal. The Company, considering current information and events regarding the borrowers’ ability to repay their obligations, considers a loan to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is considered to be impaired, the amount of the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if the loan is considered to be collateral dependent, based on the fair value of the collateral less estimated costs to sell. Impairment losses are written off against the allowance for loan losses. For nonaccrual impaired loans, the Company records payments received as a reduction in principal. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current and full payment of principal and interest is expected. (f) Loans Held for Sale Loans held for sale are stated at the lower of aggregate cost or market value. Net fees and costs of originating loans held for sale are deferred and are included in the basis for determining the gain or loss on sales of loans held for sale. (g) Deferred Loan Origination Fees and Unearned Loan Discounts Loan origination and commitment fees and certain direct loan origination costs are being deferred, and the net amount is recognized over the life of the related loan as an adjustment to yield. Net deferred loan fees are amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Net unamortized fees on loans paid in full are recognized as a component of interest income. (h) Real Estate Owned Real estate owned is valued at the time of foreclosure at fair value, less estimated cost to sell, thereby establishing a new cost basis. The Company obtains appraisals based on recent comparable sales to assist management in estimating the fair value of real estate owned. Subsequent to acquisition, real estate owned is valued at the lower of cost or fair value, less estimated cost to sell. Declines in value are charged to expense through a direct write-down of the asset. Costs related to holding real estate are charged to expense while costs related to development and improvements are capitalized. Gains from the sale of real estate owned, if any, are recognized when title has passed, minimum down payment requirements are met, the terms of any notes received are such as to satisfy continuing investment requirements, and the Company is relieved of any requirements for continued involvement with the properties. If the minimum down payment or the continuing investment is not adequate to meet the criteria specified in the Property, Plant and Equipment topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), the Company will defer income recognition and account for such sales using alternative methods, such as installment, deposit, or cost recovery. (i) Allowance for Loan Losses The Company maintains an allowance adequate to cover Management’s estimate of probable loan losses as of the balance sheet date. The Company’s allowance for loan losses is maintained at a level considered adequate to provide for losses that can be estimated based upon specific and general conditions. All loan losses are charged, and all recoveries are credited, to the allowance for loan losses. Additions to the allowance for loan losses are provided by charges to income based on various factors, which, in the Company’s judgment, deserve current recognition in estimating probable losses. Charge-offs to the allowance are made when management determines that collectability of all or a portion of a loan is doubtful and available collateral is insufficient to repay the loan. General allowances are established for loan losses on a portfolio basis for loans that do not meet the definition of impaired, in accordance with the Receivables topic of the FASB ASC. The portfolio is grouped into similar risk characteristics, primarily loan type and loan-to-value ratio. The Company applies an estimated loss rate to each loan group. The loss rates applied are based upon its loss experience adjusted, as appropriate, for environmental factors discussed below. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be significantly more than the allowance for loan losses the Company has established, which could have a material negative effect on its financial results. Residential mortgage loans represent the largest segment of the Company’s loan portfolio. All of the residential mortgage loans are secured by a first mortgage on residential real estate in Hawaii and consist primarily of fixed-rate mortgage loans which have been underwritten to Freddie Mac and Fannie Mae guidelines and have similar risk characteristics. The loan loss allowance is determined by first calculating the historical loss rate for this segment of the portfolio. The loss rate may be adjusted for qualitative and environmental factors. The allowance for loan loss is calculated by multiplying the adjusted loss rate by the total loans in this segment of the portfolio. The adjustments to historical loss experience are based on an evaluation of several qualitative and environmental factors, including: · changes in lending policies and procedures, including changes in underwriting standards and collections, charge-off and recovery practices; · changes in international, national, and local economic trends; · changes in the types of loans in the loan portfolio; · changes in the experience and ability of personnel in the mortgage loan origination and loan servicing departments; · changes in the number and amount of delinquent loans and classified assets; · changes in the type and volume of loans being originated; · changes in the value of underlying collateral for collateral dependent loans; · changes in any concentration of credit; and · external factors such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio. The Company also uses historical loss rates adjusted for qualitative and environmental factors to establish loan loss allowances for the following portfolio segments: · home equity loans and lines of credit; and · consumer and other loans. The Company has a limited loss experience for the construction, commercial and other mortgage segment of the loan portfolio. The loan loss allowance on this portfolio segment is determined using the loan loss rate of other financial institutions in the State of Hawaii. The allowance for loan loss is calculated by multiplying the loan loss rate of other financial institutions in the state by the total loans in this segment of the Company’s loan portfolio. The allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. In addition, the unallocated allowance is established to provide for probable losses that have been incurred as of the reporting date but are not reflected in the allocated allowance. While the Company uses the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, as an integral part of their examination process, the bank regulators will periodically review the allowance for loan losses. The bank regulators may require the Company to increase the allowance based on their analysis of information available at the time of their examination. (j) Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control is surrendered. Control is surrendered when the assets have been isolated from the Company, the transferee obtains the right to pledge or exchange the assets without constraint, and the Company does not maintain effective control over the transferred assets. Mortgage loans sold for cash are accounted for as sales as the above criteria have been met. Mortgage loans may also be packaged into securities that are issued and guaranteed by U.S. government-sponsored enterprises or a U.S. government agency. The Company receives 100% of the mortgage-backed securities issued. Securitizations are not accounted for as sales and no gain or loss is recognized. The mortgage-backed securities received in securitizations are valued at amortized cost and classified as held-to-maturity. Mortgage loan transfers accounted for as sales and securitizations are without recourse, except for normal representations and warranties provided in sales transactions, and the Company may retain the related rights to service the loans. The retained servicing rights create mortgage servicing assets that are accounted for in accordance with the Transfers and Servicing topic of the FASB ASC. Mortgage servicing assets are initially valued at fair value and subsequently at the lower of cost or fair value and are amortized in proportion to and over the period of estimated net servicing income. The Company uses a discounted cash flow model to determine the fair value of retained mortgage servicing rights. Prior to 2010, we retained the servicing rights on residential mortgage loans sold. In 2010, we began selling loans primarily on a servicing-released basis. (k) Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is principally computed on the straight-line method over the estimated useful lives of the respective assets. The estimated useful life of buildings and improvements is 30 years, furniture, fixtures, and equipment is 3 to 10 years, and automobiles are 3 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. (l) Income Taxes The Company files consolidated federal income tax and consolidated state franchise tax returns. Deferred tax assets and liabilities are recognized using the asset and liability method of accounting for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We establish income tax contingency reserves for potential tax liabilities related to uncertain tax positions. A liability for income tax uncertainties would be recorded for unrecognized tax benefits related to uncertain tax positions where it is more likely than not that the position will be sustained upon examination by a taxing authority. As of December 31, 2017 and 2016, the Company had not recognized a liability for income tax uncertainties in the accompanying consolidated balance sheets because Management concluded that the Company does not have uncertain tax positions. The Company recognizes interest and penalties related to tax liabilities in other interest expense and other general and administrative expenses, respectively, in the consolidated statements of income. Tax years 2014 to 2016 currently remain subject to examination by the Internal Revenue Service and by the Department of Taxation of the State of Hawaii. (m) Impairment of Long-Lived Assets Long-lived assets, such as premises and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. (n) Pension Plan Pension benefit costs (returns) are charged (credited) to salaries and employee benefits expense, and the corresponding prepaid (accrued) pension cost is recorded in prepaid expenses and other assets or accounts payable and accrued expenses in the consolidated balance sheets. The Company’s policy is to fund pension costs in amounts that will not be less than the minimum funding requirements of the Employee Retirement Income Security Act of 1974 and will not exceed the maximum tax-deductible amounts. The Company generally funds at least the net periodic pension cost, subject to limits and targeted funded status as determined with the consulting actuary. (o) Supplemental Employee Retirement Plan (SERP) The SERP is a noncontributory supplemental retirement plan covering certain current and former employees of the Company. Benefits in the SERP plan are paid after retirement, in addition to the benefits provided by the Pension Plan. The Company accrues SERP costs over the estimated period until retirement by charging salaries and employee benefits expense in the consolidated statements of income, with a corresponding credit to accounts payable and accrued expenses in the consolidated balance sheets. (p) Employee Stock Ownership Plan (ESOP) The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of stockholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce debt and accrued interest. (q) Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the sum of the weighted-average number of shares outstanding plus the dilutive effect of stock options and restricted stock. ESOP shares not committed to be released are not considered outstanding. We have two forms of our outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. The computed basic and diluted earnings per share are substantially equivalent using both the two-class and the treasury stock methods of calculating earnings per share. (r) Common Stock Repurchase Program In 2016, 2014, 2013, 2011 and 2010, the Company adopted common stock repurchase programs in which shares repurchased reduce the amount of shares issued and outstanding. The repurchased shares may be reissued in connection with share-based compensation plans and for general corporate purposes. As of December 31, 2017 and 2016, the Company had accumulated repurchases of 3,138,153 of the total 3,374,253 shares authorized by the Board of Directors. There were no shares repurchased as part of our common stock repurchase program during 2017. During 2016, shares were repurchased at an average cost of $25.96. (s) Bank-Owned Life Insurance The Company’s investment in bank-owned life insurance is based on cash surrender value. The Company invests in bank-owned life insurance to provide a funding source for benefit plan obligations. Bank-owned life insurance also generally provides noninterest income that is nontaxable. Federal regulations generally limit the investment in bank-owned life insurance to 25% of the Bank’s Tier 1 capital plus the allowance for loan losses. At December 31, 2017, this limit was $55.4 million and the Company had invested $44.2 million in bank-owned life insurance at that date. (t) Use of Estimates The preparation of the consolidated financial statements requires management to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the allowance for loan losses; valuation of certain investment securities and determination as to whether declines in fair value below amortized cost are other than temporary; valuation allowances for deferred income tax assets; mortgage servicing assets; and assets and obligations related to employee benefit plans. Accordingly, actual results could differ from those estimates. (u) Recently Issued Accounting Pronouncements In May 2014, the FASB amended the Revenue Recognition topic of the FASB 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 will not have a significant impact on the Company’s revenue recognition for these key in-scope revenue sources. The Company adopted this amendment effective January 1, 2018, under the modified retrospective approach. 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 material 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 year ended December 31, 2017, the Company recognized in earnings $1.0 million 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 does not expect the adoption of this amendment to have a material effect on its consolidated financial statements. In February 2018, the FASB amended the Income Statement – Reporting Comprehensive Income topic of the FASB ASC. Existing accounting standards require that the tax effects of tax rate changes on deferred taxes be recorded in current income. Deferred taxes previously included in accumulated other comprehensive income are not allowed to be adjusted and may not reflect current tax rates. This amendment allows the reclassification from accumulated other comprehensive income to retained earnings the tax effects resulting from the Tax Cuts and Jobs Act passed in December 2017. The amendment is effective for fiscal years beginning after December 15, 2018, with early adoption permitted in any period for which financial statements have not yet been issued. The Company expects to adopt this amendment during the first quarter of 2018 with the reclassification of $1.1 million of deferred taxes between accumulated other comprehensive income and retained earnings.

Cash and Cash Equivalents

Cash and Cash Equivalents	12 Months Ended
	Dec. 31, 2017
Cash and Cash Equivalents
Cash and Cash Equivalents	(3) Cash and Cash Equivalents The table below presents the balances of cash and cash equivalents: December 31, (Dollars in thousands) 2017 2016 Cash and due from banks $ 9,114 $ 9,043 Interest-earning deposits in other banks 22,975 52,230 Cash and cash equivalents $ $ Interest-earning deposits in other banks consist primarily of deposits at the Federal Reserve Bank of San Francisco.

Investment Securities

Investment Securities	12 Months Ended
	Dec. 31, 2017
Investment Securities.
Investment Securities	(4) 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 December 31, 2017: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,870 $ — $ (19) $ 2,851 Total $ 2,870 $ — $ (19) $ 2,851 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 404,365 $ 6,056 $ (4,603) $ 405,818 Trust preferred securities 427 418 — 845 Total $ 404,792 $ 6,474 $ (4,603) $ 406,663 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 December 31, 2017 are shown below. Incorporated in the maturity schedule are mortgage-backed and trust preferred securities, which are allocated using the contractual maturity as a basis. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Estimated (Dollars in thousands) Cost Fair Value Available-for-sale: Due within 5 years $ — $ — Due after 5 years through 10 years — — Due after 10 years 2,870 2,851 Total $ 2,870 $ 2,851 Held-to-maturity: Due within 5 years $ 10 $ 11 Due after 5 years through 10 years 71 71 Due after 10 years 404,711 406,581 Total $ 404,792 $ 406,663 Realized gains and losses and the proceeds from sales of held-to-maturity securities are shown in the table below. Most of the securities which were sold were U.S. government-sponsored mortgage-backed securities. (Dollars in thousands) 2017 2016 2015 Proceeds from sales $ 7,446 $ 5,462 $ 7,718 Gross gains 431 370 701 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. In 2015, the Company recognized a gross realized gain of $61,000 from the sale of one of the trust preferred securities the Company owned, PreTSL XXIV. The Company previously wrote off the entire book value of this security when it incurred an other-than-temporary impairment charge in prior years. The trust preferred security sold was classified in the held-to-maturity portfolio. Since the credit rating of this security was downgraded, in accordance with the Investment-Debt and Equity Securities topic of the FASB ASC, the sale of this security does not taint management’s intent to hold the remaining securities in the held-to-maturity portfolio. Investment securities with amortized costs of $287.2 million and $239.9 million at December 31, 2017 and 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 December 31, 2017 and 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) December 31, 2017: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,851 $ 19 $ — $ — 1 $ 2,851 $ 19 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 41,163 $ 299 $ 140,200 $ 4,304 49 $ 181,363 $ 4,603 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, 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 December 31, 2017. Trust Preferred Securities. At December 31, 2017, the Company owned one trust preferred security, PreTSL XXIII. PreTSL XXIII has an amortized cost and a remaining cost basis of $427,000 at December 31, 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 72 months in the same tranche of securities that we own and no new issues of pooled trust preferred securities have occurred since 2007. We used a discounted cash flow model to determine whether this security is other-than-temporarily impaired. The assumptions used in preparing the discounted cash flow model include the following: estimated discount rates, estimated deferral and default rates on collateral, and estimated cash flows. Based on the Company’s review, the Company’s investment in PreTSL XXIII did not incur additional impairment during the years ended December 31, 2017, 2016 and 2015 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 $427,000 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: (Dollars in thousands) 2017 2016 Balance at January 1, $ 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 December 31, $ 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: December 31, (Dollars in thousands) 2017 2016 Noncredit losses on other-than-temporarily impaired securities, net of taxes $ — $ —

Federal Home Loan Bank Stock

Federal Home Loan Bank Stock	12 Months Ended
	Dec. 31, 2017
FHLB stock
Federal Home Loan Bank Stock
Federal Home Loan Bank Stock	(5) Federal Home Loan Bank Stock The Bank, as a member of the FHLB system, is required to obtain and hold shares of capital stock in the FHLB. At December 31, 2017 and 2016, the Bank met such requirement. At December 31, 2017 and 2016, the Bank owned $6.5 million and $4.9 million, respectively, of capital stock of the FHLB Des Moines. The Company evaluated its investment in the stock of the FHLB Des Moines for impairment. Based on the Company’s evaluation of the underlying investment, including the long-term nature of the investment and the liquidity position of the FHLB Des Moines, the Company did not consider its FHLB stock other-than-temporarily impaired.

Federal Reserve Bank Stock

Federal Reserve Bank Stock	12 Months Ended
	Dec. 31, 2017
FRB stock
Federal Home Loan Bank Stock
Federal Reserve Bank Stock	(6) Federal Reserve Bank Stock The Bank, as a member of the Federal Reserve System, is required to hold shares of capital stock of the FRB of San Francisco equal to six percent of capital and surplus of the Bank. At December 31, 2017 and 2016, the Bank met such requirement. At December 31, 2017 and 2016, the Bank owned $3.1 million of capital stock of the FRB of San Francisco. The Company evaluated its investment in the stock of the FRB of San Francisco for impairment. Based on the Company’s evaluation of the underlying investment, including the long-term nature of the investment and the liquidity position of the FRB of San Francisco, the Company did not consider its FRB stock other-than-temporarily impaired.

Loans Receivable and Allowance

Loans Receivable and Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2017
Loans Receivable and Allowance for Loan Losses
Loans Receivable and Allowance for Loan Losses	(7) Loans Receivable and Allowance for Loan Losses The components of loans receivable are as follows: December 31, (Dollars in thousands) 2017 2016 Real estate loans: First mortgages: One- to four-family residential $ 1,444,625 $ 1,289,364 Multi-family residential 10,799 9,551 Construction, commercial and other 21,787 23,346 Home equity loans and lines of credit 12,882 14,805 Total real estate loans 1,490,093 1,337,066 Other loans: Loans on deposit accounts 274 204 Consumer and other loans 4,340 4,360 Total other loans 4,614 4,564 Less: Net unearned fees and discounts (3,188) (3,191) Allowance for loan losses (2,548) (2,452) Total unearned fees, discounts and allowance for loan losses (5,736) (5,643) Loans receivable, net $ 1,488,971 $ 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 2017: Balance, beginning of year $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 Provision (reversal of provision) for loan losses 63 20 (1) (40) 10 52 1,657 539 1 75 232 2,504 Charge-offs (11) — — (26) — (37) Recoveries 75 — — 6 — 81 Net recoveries (charge-offs) 64 — — (20) — 44 Balance, end of year $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 2016: Balance, beginning of year $ 1,380 $ 517 $ 3 $ 72 $ 194 $ 2,166 Provision (reversal of provision) for loan losses 223 1 (1) 59 28 310 1,603 518 2 131 222 2,476 Charge-offs (33) — — (28) — (61) Recoveries 24 1 — 12 — 37 Net recoveries (charge-offs) (9) 1 — (16) — (24) Balance, end of year $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 2015: Balance, beginning of year $ 413 $ 977 $ 5 $ 263 $ 33 $ 1,691 Provision (reversal of allowance) for loan losses 964 (471) (49) (150) 161 455 1,377 506 (44) 113 194 2,146 Charge-offs — — — (53) — (53) Recoveries 3 11 47 12 — 73 Net recoveries (charge-offs) 3 11 47 (41) — 20 Balance, end of year $ 1,380 $ 517 $ 3 $ 72 $ 194 $ 2,166 In 2016, the Company changed the look-back period that is used to calculate the historical loss rate 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. The allowance for loan loss for each segment of the loan portfolio is generally determined by calculating the historical loss of each segment in the look-back period and adding a qualitative adjustment for the following factors: · changes in lending policies and procedures, including changes in underwriting standards and collections, charge-off and recovery practices; · changes in international, national, and local economic trends; · changes in the types of loans in the loan portfolio; · changes in the experience and ability of personnel in the mortgage loan origination and loan servicing departments; · changes in the number and amount of delinquent loans and classified assets; · changes in the type and volume of loans being originated; · changes in the value of underlying collateral for collateral dependent loans; · changes in any concentration of credit; and · external factors such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio. The allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. The unallocated allowance is established for probable losses that have been incurred as of the reporting date but are not reflected in the allocated allowance. Management considers the allowance for loan losses at December 31, 2017 to be at an appropriate level to provide for probable losses that can be reasonably estimated based on general and specific conditions at that date. While the Company uses the best information it has available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the information used in making the evaluations. To the extent actual outcomes differ from the estimates, additional provisions for credit losses may be required that would reduce future earnings. In addition, as an integral part of their examination process, the 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 December 31, 2017: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,721 539 1 55 232 2,548 Total ending allowance balance $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 Loans: Ending loan balance: Individually evaluated for impairment $ 4,977 $ — $ 165 $ — $ — $ 5,142 Collectively evaluated for impairment 1,447,326 21,701 12,722 4,628 — 1,486,377 Total ending loan balance $ 1,452,303 $ 21,701 $ 12,887 $ 4,628 $ — $ 1,491,519 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 December 31, 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,977 $ 5,897 Home equity loans and lines of credit 165 228 Total $ 5,142 $ 6,125 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: Average Recorded Interest Income (Dollars in thousands) Investment Recognized 2017: With no related allowance recorded: One- to four-family residential mortgages $ 5,112 $ 58 Home equity loans and lines of credit 175 — Consumer and other — — Total $ 5,287 $ 58 2016: With no related allowance recorded: One- to four-family residential mortgages $ 5,743 $ 72 Home equity loans and lines of credit 161 — Consumer and other 1 — Total $ 5,905 $ 72 2015: With no related allowance recorded: One- to four-family residential mortgages $ 6,642 $ 71 Home equity loans and lines of credit 131 — Consumer and other 9 — Total $ 6,782 $ 71 There were no loans individually evaluated for impairment with a related allowance for loan loss as of December 31, 2017, 2016 or 2015. Loans individually evaluated for impairment do not have an allocated allowance for loan loss because they are 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 December 31, 2017: One- to four-family residential mortgages $ — $ 1,207 $ 1,589 $ 2,796 $ 1,438,725 $ 1,441,521 $ 4,062 $ — Multi-family residential mortgages — — — — 10,782 10,782 — — Construction, commercial and other mortgages — — — — 21,701 21,701 — — Home equity loans and lines of credit — — 41 41 12,846 12,887 165 — Loans on deposit accounts — — — — 274 274 — — Consumer and other 4 — — 4 4,350 4,354 — — Total $ 4 $ 1,207 $ 1,630 $ 2,841 $ 1,488,678 $ 1,491,519 $ 4,227 $ — 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 17 nonaccrual loans with a book value of $4.2 million at December 31, 2017 and 19 nonaccrual loans with a book value of $4.6 million as of December 31, 2016. The Company collected interest on nonaccrual loans of $179,000, $195,000 and $233,000 during 2017, 2016 and 2015, 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 $240,000, $268,000 and $312,000 during 2017, 2016, and 2015, respectively, 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 December 31, 2017, 2016 or 2015. There were no loans modified in a troubled debt restructuring during the year ended December 31, 2017 or 2016. There were no new troubled debt restructurings within the past 12 months that subsequently defaulted. The table below summarizes troubled debt restucturings by class of loans: Number of Accrual Number of Nonaccrual (Dollars in thousands) Loans Status Loans Status Total December 31, 2017: One- to four-family residential mortgages 4 $ 915 5 $ 1,074 $ 1,989 Home equity loans and lines of credit — — 1 92 92 Total 4 $ 915 6 $ 1,166 $ 2,081 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 December 31, 2017 and 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 December 31, 2017, we have no commitments to lend any additional funds to these borrowers. The Company had no real estate owned as of December 31, 2017 or 2016. There were three one- to four-family residential mortgage loans totaling $650,000 and one home equity loan for $41,000 in the process of foreclosure as of December 31, 2017. There were three one-to four-family residential mortgage loans totaling $660,000 and one home equity loan for $42,000 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 years ended December 31, 2017, 2016 and 2015, the Company sold $25.0 million, $48.9 million and $56.2 million, respectively, of mortgage loans held for sale and recognized gains of $199,000, $406,000, and $503,000, respectively. The Company had one loan held for sale for $403,000 at December 31, 2017 and five loans held for sale totaling $1.6 million at December 31, 2016. The Company serviced loans for others of $35.5 million, $41.5 million and $51.8 million at December 31, 2017, 2016, and 2015, respectively. Of these amounts, $1.5 million, $2.2 million, and $2.8 million relate to securitizations for which the Company continues to hold the related mortgage-backed securities at December 31, 2017, 2016, and 2015, respectively. The amount of contractually specified servicing fees earned was $105,000, $128,000 and $153,000 for 2017, 2016, and 2015, respectively. The fees are reported in service fees on loan and deposit accounts in the consolidated statements of income. In the normal course of business, the Company has made loans to certain directors and executive officers under terms which management believes are consistent with the Company’s general lending policies. Loans to directors and executive officers amounted to $890,000 at December 31, 2017 and $1.4 million at December 31, 2016.

Accrued Interest Receivable

Accrued Interest Receivable	12 Months Ended
	Dec. 31, 2017
Accrued Interest Receivable
Accrued Interest Receivable	(8) Accrued Interest Receivable The components of accrued interest receivable are as follows: December 31, (Dollars in thousands) 2017 2016 Investment securities $ 1,045 $ 1,064 Loans receivable 4,090 3,658 Interest-bearing deposits 7 10 Total $ 5,142 $ 4,732

Mortgage Servicing Assets

Mortgage Servicing Assets	12 Months Ended
	Dec. 31, 2017
Mortgage Servicing Assets.
Mortgage Servicing Assets	(9) Mortgage Servicing Assets Mortgage servicing assets are created when the Company sells mortgage loans and retains the rights to service the loans. Mortgage servicing assets are accounted for in accordance with the Transfers and Servicing topic of the FASB ASC and are initially valued at fair value and subsequently at the lower of cost or fair value. We amortize mortgage servicing assets in proportion to and over the period of estimated net servicing income. All servicing assets are grouped into categories based on the interest rate and original term of the loan sold. Mortgage servicing assets related to loan sales are recorded as a gain on sale of loans and totaled $3,000 and $0 for the years ended December 31, 2017 and 2016, respectively. The table below presents the changes in our mortgage servicing assets: (Dollars in thousands) 2017 2016 Balance at beginning of year $ 307 $ 426 Additions 3 — Impairments — (49) Amortization (47) (70) Balance at end of year $ 263 $ 307 The table below presents the gross carrying values, accumulated amortization, and net carrying values of our mortgage servicing assets: December 31, (Dollars in thousands) 2017 2016 Gross carrying value $ 1,310 $ 1,307 Accumulated amortization (1,047) (1,000) Net carrying value $ 263 $ 307 The estimated amortization expense for our mortgage servicing assets for the next five years and all years thereafter are as follows: (Dollars in thousands) 2018 $ 48 2019 32 2020 26 2021 22 2022 20 Thereafter 115 Total $ 263 The Company uses a discounted cash flow model to determine the fair value of retained mortgage servicing assets. The discounted cash flow model is also used to assess impairment of servicing assets. Impairments are recorded as adjustments to amortization expense and included in service fees on loan and deposit accounts in the statements of income. Critical assumptions used in the discounted cash flow model include mortgage prepayment speeds, discount rates and cost of servicing. Prepayment speed may be affected by economic factors such as home price appreciation, market interest rates, the availability of other loan products to our borrowers and customer payment patterns. Prepayment speeds include the impact of all borrower prepayments, including full payoffs, additional principal payments and the impact of loans paid off due to foreclosure liquidations. As market interest rates decline, prepayment speeds will generally increase as customers refinance existing mortgage loans under more favorable interest rate terms and future cash flows will generally decline resulting in a potential reduction, or impairment, to the fair value of the mortgage servicing assets. Alternatively, an increase in market interest rates may cause a decrease in prepayment speeds and therefore an increase in the fair value of mortgage servicing assets. The table below presents the fair values and key assumptions used in determining the fair values of our mortgage servicing assets as of December 31, 2017 and 2016: 2017 2016 Fair value, beginning of year (in thousands) $ 368 $ 441 Fair value, end of year (in thousands) 311 368 Weighted average discount rate % % Weighted average prepayment speed assumption (PSA prepayment speed) Annual cost to service (per loan) $ 70 $ 65 The PSA prepayment model assumes increasing prepayment rates for the first 30 months of a loan’s term and constant prepayment rates thereafter.

Interest Rate Lock and Forward

Interest Rate Lock and Forward Loan Sale Commitments	12 Months Ended
	Dec. 31, 2017
Interest Rate Lock and Forward Loan Sale Commitments
Interest Rate Lock and Forward Loan Sale Commitments	(10) Interest Rate Lock and Forward Loan Sale Commitments 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 values in prepaid expenses and other assets or in accounts payable and accrued expenses. Changes in fair value are recorded in current earnings. At December 31, 2017, interest rate locks and forward loan sale commitments on loans held for sale amounted to $2.5 million and $2.9 million, respectively. The table below presents the location of assets and liabilities related to derivatives: Asset Derivatives Liability Derivatives Location on Fair Value at December 31, Fair Value at December 31, (Dollars in thousands) Balance Sheet 2017 2016 2017 2016 Interest rate contracts Prepaid expenses and other assets $ 8 $ 104 $ — $ — Interest rate contracts Accounts payable and accrued expenses — — 8 104 Total derivatives $ 8 $ 104 $ 8 $ 104 The table below presents the location of gains and losses related to derivatives: Location of Loss on (Dollars in thousands) Statement of Income 2017 2016 Interest rate contracts Gain on sale of loans $ — $ 6

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2017
Premises and Equipment
Premises and Equipment	(11) Premises and Equipment Premises and equipment are as follows: December 31, (Dollars in thousands) 2017 2016 Land $ 585 $ 585 Buildings and improvements 1,301 1,045 Leasehold improvements 13,915 13,005 Furniture, fixtures and equipment 5,727 5,261 Automobiles 115 115 21,643 20,011 Less accumulated depreciation and amortization (15,962) (16,066) 5,681 3,945 Construction in progress 40 382 Total $ 5,721 $ 4,327 Depreciation expense was $1.1 million, $1.1 million and $1.3 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Deposits

Deposits	12 Months Ended
	Dec. 31, 2017
Deposits
Deposits	(12) Deposits Deposit accounts by type are summarized with their respective weighted-average interest rates as follows: December 31, 2017 2016 (Dollars in thousands) Amount Rate Amount Rate Non-interest bearing $ 49,725 - % $ 47,703 - % Savings accounts 1,040,248 0.46 1,022,159 0.41 Certificates of deposit 312,225 1.34 236,043 0.96 Money market 5,578 0.43 3,406 0.44 Checking and Super NOW 189,519 0.02 183,889 0.02 Total $ 1,597,295 0.56 % $ 1,493,200 0.43 % The maturity of certificate of deposit accounts at December 31, 2017 is as follows (dollars in thousands): Maturing in: 2018 $ 165,706 2019 70,272 2020 31,423 2021 20,458 2022 24,366 Total $ 312,225 Certificates of deposit with balances greater than or equal to $250,000 totaled $192.8 mllion and $141.6 million at December 31, 2017 and 2016, respectively. Deposit accounts in the Bank are insured by the FDIC, generally up to a maximum of $250,000 per account owner. Interest expense by type of deposit is as follows: (Dollars in thousands) 2017 2016 2015 Savings $ 4,445 $ 4,162 $ 3,670 Certificates of deposit and money market 3,182 1,734 1,118 Checking and Super NOW 39 37 33 Total $ 7,666 $ 5,933 $ 4,821 At December 31, 2017 and 2016, overdrawn deposit accounts totaled $22,000 and have been reclassified as loans in the consolidated balance sheets.

Advances from the Federal Home

Advances from the Federal Home Loan Bank	12 Months Ended
	Dec. 31, 2017
Advances from the Federal Home Loan Bank
Advances from the Federal Home Loan Bank	(13) Advances from the Federal Home Loan Bank Federal Home Loan Bank advances are secured by a blanket pledge on the Bank’s assets not otherwise pledged. Our credit line with the FHLB Des Moines is equal to 35% of the Bank’s total assets and as of December 31, 2017 and 2016, we had the capacity to borrow an additional $579.4 million and $577.9 million, respectively. Advances outstanding consisted of the following: December 31, 2017 2016 Weighted Weighted Average Average (Dollars in thousands) Amount Rate Amount Rate Due within one year $ 46,200 1.39 % $ — — % Due over 1 year to 2 years 31,000 1.79 37,000 1.33 Due over 2 years to 3 years 15,000 1.85 22,000 1.66 Due over 3 years to 4 years 15,000 2.32 10,000 1.66 Total $ 107,200 1.70 % $ 69,000 1.49 %

Securities Sold Under Agreement

Securities Sold Under Agreements to Repurchase	12 Months Ended
	Dec. 31, 2017
Securities Sold Under Agreements to Repurchase
Securities Sold Under Agreements to Repurchase	(14) 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: 2017 2016 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ — — % $ 25,000 1.46 % Over 1 year to 2 years 25,000 1.66 — — Over 2 years to 3 years 5,000 1.65 25,000 1.66 Over 3 years to 4 years — — 5,000 1.65 Total $ 30,000 1.66 % $ 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 December 31, 2017. The amount at risk is the greater of the carrying value or fair value over the repurchase liability and refers to the potential loss to the Company if the secured lender fails to return the security at the maturity date of the agreement. All the agreements to repurchase are with JP Morgan Securities and the securities pledged are mortgage-backed securities issued and guaranteed by U.S. government sponsored enterprises. The repurchase liability cannot exceed 90% of the fair value of securities pledged. In the event of a decline in the fair value of securities pledged to less than the required amount due to market conditions or principal repayments, the Company is obligated to pledge additional securities or other suitable collateral to cure the deficiency. Weighted Carrying Fair Average Value of Value of Repurchase Amount Months to (Dollars in thousands) Securities Securities Liability at Risk Maturity Maturing: Over 90 days $ 39,834 $ 39,986 $ 30,000 $ 9,986 17

Offsetting of Financial Liabili

Offsetting of Financial Liabilities	12 Months Ended
	Dec. 31, 2017
Offsetting of Financial Liabilities
Offsetting of Financial Liabilities	(15) Offsetting of Financial Liabilities Securities sold under agreements to repurchase are subject to a right of offset in the event of default. See Note 14, 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 December 31, 2017: Securities sold under agreements to repurchase $ 30,000 $ — $ 30,000 $ 30,000 $ — $ — December 31, 2016: Securities sold under agreements to repurchase $ 55,000 $ — $ 55,000 $ 55,000 $ — $ —

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Taxes
Income Taxes	(16) Income Taxes Allocation of federal and state income taxes between current and deferred provisions is as follows: (Dollars in thousands) 2017 2016 2015 Current Federal $ 6,219 $ 7,487 $ 10,176 State 1,447 1,810 1,833 7,666 9,297 12,009 Deferred Federal 3,273 1,339 (2,147) State 163 151 (76) 3,436 1,490 (2,223) Total $ 11,102 $ 10,787 $ 9,786 The federal statutory corporate tax rate for the years ended December 31, 2017, 2016 and 2015 was 35%. A reconciliation of the tax provision based on the statutory corporate rate on pretax income and the provision for taxes as shown in the accompanying consolidated statements of income is as follows: (Dollars in thousands) 2017 2016 2015 Income tax expense at statutory rate $ 9,123 $ 9,497 $ 8,587 Income tax effect of: Other tax-exempt income (317) (338) (359) Share-based compensation 68 87 State income taxes, net of federal income tax benefits 1,104 1,057 1,104 Tax benefit from the exercise of stock options (1) (1,046) — — Write-down of deferred income taxes (2) 2,054 — — Other 182 503 367 Total income tax expense $ 11,102 $ 10,787 $ 9,786 Effective income tax rate 42.59 % 39.75 % 39.89 % (1) Starting in 2017 a new accounting standard requires that any excess tax benefits resulting from the exercise of stock options be recognized in income tax expense. Prior to the adoption of the new standard, the excess tax benefits were recorded as additional paid-in-capital. (2) Income tax expense for 2017 included a $2.1 million write-down of deferred income tax assets that resulted when the federal corporate tax rate was lowered from 35% to 21% due to the Tax Cuts and Jobs Act. The components of income taxes payable (receivable) are as follows: December 31, (Dollars in thousands) 2017 2016 Current taxes payable (receivable): Federal $ (1,571) $ (122) State 1,483 1,616 $ (88) $ 1,494 Deferred taxes receivable: Federal $ (3,178) $ (6,350) State (1,431) (1,555) $ (4,609) $ (7,905) The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: December 31, (Dollars in thousands) 2017 2016 Deferred tax assets: Premises and equipment $ 966 $ 1,737 Hawaii franchise tax 440 560 Unfunded pension liability 1,229 1,550 Allowance for loan losses 678 969 Impaired asset write-down 724 1,020 Employee benefit plans 2,580 3,785 Equity incentive plan 420 1,330 Unrealized losses on securities available-for-sale 17 21 Deferred compensation 453 744 Other 137 215 7,644 11,931 Deferred tax liabilities: Net deferred loan fees 2,676 3,566 FHLB stock dividends 126 196 Prepaid expense 163 143 Premiums on loans sold 70 121 3,035 4,026 Net deferred tax assets $ 4,609 $ 7,905 Deferred tax assets and liabilities at December 31, 2017 and 2016 were calculated using federal corporate tax rates of 21% and 35%, respectively. The corporate tax rate was lowered to 21% due to the Tax Cuts and Jobs Act of 2017. The lower tax rate caused a $2.1 million increase in income tax expense and write down of deferred income tax assets. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income are reduced. There was no valuation allowance for deferred tax assets as of December 31, 2017 and 2016.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2017
Employee Benefit Plans
Employee Benefit Plans	(17) 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. The benefits are based on years of service and the employees’ compensation during the service period. The Company’s policy is to accrue the actuarially determined pension costs and to fund pension costs within regulatory guidelines. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in accumulated other comprehensive income (AOCI) beginning in 2006 and amortized to net periodic benefit cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under the plan are reasonable based on its experience and market conditions. On November 4, 2008, the Board of Directors approved changes to the Company’s defined benefit pension plan. Effective December 31, 2008, there are no further accrual of benefits for any participants and benefits do not increase with any additional years of service. Employees already enrolled in the Pension Plan as of December 31, 2008 will be 100% vested if they have at least five years of service. For employees with less than five years of service, vesting would occur at the employee’s five-year anniversary date. In addition, the Company 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 following table sets forth the status of the Pension Plan and SERP at the dates indicated: Pension Plan SERP December 31, (Dollars in thousands) 2017 2016 2017 2016 Accumulated benefit obligation at end of year $ 19,314 $ 17,496 $ 9,242 $ 9,044 Change in projected benefit obligation: Benefit obligation at beginning of year $ 17,496 $ 17,321 $ 9,044 $ 8,891 Service cost 193 194 75 38 Interest cost 763 752 140 132 Actuarial loss (gain) 1,670 (90) — — Benefits paid (808) (681) (17) (17) Benefit obligation at end of year 19,314 17,496 9,242 9,044 Change in plan assets: Fair value of plan assets at beginning of year 14,804 13,140 — — Actual return on plan assets 1,931 345 — — Employer contributions — 2,000 17 17 Benefits paid (808) (681) (17) (17) Fair value of plan assets at end of year 15,927 14,804 — — Funded status at end of year $ (3,387) $ (2,692) $ (9,242) $ (9,044) Amounts recognized in the consolidated balance sheets: Accounts payable and accrued expenses - liability $ (3,387) $ (2,692) $ (9,242) $ (9,044) Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 9,096 $ 8,582 $ — $ — Prior service cost 149 154 — — Accumulated other comprehensive loss, before tax $ 9,245 $ 8,736 $ — $ — The following table sets forth the changes recognized in accumulated other comprehensive loss for the years indicated: Pension Plan Year Ended December 31, (Dollars in thousands) 2017 2016 Accumulated other comprehensive loss at beginning of year, before tax $ 8,736 $ 8,375 Actuarial net loss arising during the period 764 580 Amortizations (recognized in net periodic benefit cost): Actuarial loss (250) (214) Prior service cost (5) (5) Total recognized in other comprehensive loss 509 361 Accumulated other comprehensive loss at end of year, before tax $ 9,245 $ 8,736 For the years ended December 31, 2017 and 2016, the following weighted average assumptions were used to determine benefit obligations at the end of the year: Pension Plan SERP Year Ended December 31, 2017 2016 2017 2016 Assumptions used to determine the year-end benefit obligations: Discount rate 3.70 % 4.30 % 5.04 % 5.05 % Rate of compensation increase N/A N/A 5.00 % 5.00 % The Company does not expect any plan assets to be returned to the Company during calendar year 2018. The dates used to determine retirement measurements for the Pension Plan were December 31, 2017 and 2016. The Company’s investment strategy for the defined benefit retirement plan is to maintain a consistent rate of return with primary emphasis on capital appreciation and secondary emphasis on income to enhance the purchasing power of the plan’s assets over the long-term and to preserve capital. The investment policy establishes a target allocation for each asset class that is reviewed periodically and rebalanced when considered appropriate. Normal target allocations at December 31, 2017 were 55% domestic equity securities, 10% international equity securities and 35% bonds. Equity securities primarily include stocks, investment in exchange traded funds and large-cap, mid-cap and small-cap mutual funds. Bonds include U.S. Treasuries, mortgage-backed securities and corporate bonds of companies in diversified industries. Other types of investments include money market funds and savings accounts opened with the Company. As of December 31, 2017 and 2016, the Pension Plan’s assets measured at fair value were classified as follows: Fair Value of Measurements at Report Date Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Total Fair Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) December 31, 2017: Cash $ 846 $ 846 $ — $ — Equities 11,814 11,814 — — Mutual funds (1) 3,267 3,267 — — Total $ 15,927 $ 15,927 $ — $ — December 31, 2016: Cash $ 1,839 $ 1,839 $ — $ — Equities 9,794 9,794 — — Mutual funds (1) 3,171 3,171 — — Total $ 14,804 $ 14,804 $ — $ — (1) This category includes mutual funds that invest in equities and bonds. The mutual fund managers have the ability to change the amounts invested in equities and bonds depending on their investment outlook. Estimated future benefit payments reflecting expected future service at December 31, 2017 are as follows: Pension (Dollars in thousands) Plan SERP 2018 $ 954 $ 17 2019 1,007 6,488 2020 1,039 150 2021 1,092 2,320 2022 1,133 144 2023 - 2027 5,794 665 Total $ 11,019 $ 9,784 For the years ended December 31, 2017, 2016, and 2015, the following weighted average assumptions were used to determine net periodic benefit cost for the fiscal years shown: Pension Plan SERP Year Ended December 31, (Dollars in thousands) 2017 2016 2015 2017 2016 2015 Assumptions used to determine the net periodic benefit cost: Discount rate 4.30 % 4.40 % 4.10 % 5.03 % 5.05 % 5.06 % Expected return on plan assets 7.25 7.50 7.50 N/A N/A N/A Rate of compensation increase N/A N/A N/A 5.00 5.00 5.00 The components of net periodic benefit cost were as follows: Pension Plan SERP Year Ended December 31, (Dollars in thousands) 2017 2016 2015 2017 2016 2015 Net periodic benefit cost for the year: Service cost $ 193 $ 194 $ 120 $ 75 $ 38 $ 29 Interest cost 763 752 722 140 132 125 Expected return on plan assets (1,026) (1,015) (976) — — — Amortization of prior service cost 5 5 — — — — Recognized actuarial loss 250 214 215 — — — Recognized curtailment loss — — — — — — Net periodic benefit cost $ 185 $ 150 $ 81 $ 215 $ 170 $ 154 The estimated prior service cost and net actuarial loss that will be amortized from AOCI into net periodic pension benefit cost in 2018 are $5,000 and $249,000, respectively. The expected return on plan assets is based on the weighted-average long-term rates of return for the types of assets held in the plan. The expected return on plan assets is adjusted when there is a change in the expected long-term rate of return or in the composition of assets held in the plan. The discount rate is based on the return of high-quality fixed-income investments that can be used to fund the benefit payments under the Company’s defined benefit plan. The Company does not expect to make any contributions to the defined benefit pension plan in 2018. The Company expects to make a $17,000 contribution to the SERP in 2018 to cover actual benefit payments. The Company also has a 401(k) defined contribution plan and profit sharing plan covering all employees after one year of service. The 401(k) plan provides for employer matching contributions, as determined by the Company, based on a percentage of employees’ contributions subject to a maximum amount defined in the plan agreement. The Company’s 401(k) matching contributions, based on 5% of employees’ contributions for 2017, 2016 and 2015, amounted to $57,000, $57,000, and $56,000, respectively. The Company contributes to the profit sharing plan an amount determined by the Board of Directors. No contributions were made to the profit sharing plan for years ended December 31, 2017, 2016 and 2015.

Employee Stock Ownership Plan

Employee Stock Ownership Plan	12 Months Ended
	Dec. 31, 2017
Employee Stock Ownership Plan
Employee Stock Ownership Plan
Employee Stock Ownership Plan	(18) 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 years ended December 31, 2017 and 2016 amounted to $1.8 million and $1.1 million, respectively. Shares held by the ESOP trust were as follows: December 31, 2017 2016 Allocated shares 397,912 372,997 Unearned shares 538,261 587,193 Total ESOP shares 936,173 960,190 Fair value of unearned shares, in thousands $ 16,616 $ 19,283 The ESOP restoration plan is a non-qualified 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 years ended December 31, 2017 and 2016, we accrued $341,000 and $454,000, respectively, for the ESOP restoration plan.

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2017
2010 Equity Incentive Plan
Share-Based Compensation
Share-Based Compensation	(19) 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 stockholders’ equity. The table below presents information on compensation expense and the related tax benefit for all share-based awards: (In thousands) 2017 2016 2015 Compensation expense $ 153 $ 1,789 $ 2,670 Income tax benefit 42 718 1,072 Shares of our common stock issued under the 2010 Equity Incentive Plan shall be authorized shares. The maximum number of shares that will be awarded under the plan is 1,862,637 shares. Stock Options The table below presents the stock option activity of the Company: Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2014 832,954 $ 17.38 5.68 $ 3,471 Granted 3,600 26.23 9.67 Exercised 1,000 17.36 8 Forfeited 3,254 17.36 Expired — Options outstanding at December 31, 2015 832,300 $ 17.42 4.70 $ 8,588 Granted — Exercised 125,870 17.36 1,378 Forfeited — Expired — Options outstanding at December 31, 2016 706,430 $ 17.43 3.70 $ 10,884 Granted — Exercised 294,887 17.36 Forfeited — Expired — Options outstanding at December 31, 2017 411,543 $ 17.48 2.73 $ 5,509 Options vested and exercisable at December 31, 2017 $ $ 5,503 The following summarizes certain stock option activity of the Company: (In thousands) 2017 2016 2015 Intrinsic value of stock options exercised $ 4,345 $ 1,378 $ 8 Proceeds received from stock options exercised 5,119 2,186 17 Tax benefits realized from stock options exercised 1,601 368 3 Total fair value of stock options that vested 37 4,495 3,854 During the year ended December 31, 2017, the Company issued 135,210 shares of common stock in exchange for 294,887 stock options and 159,677 common shares. Pursuant to the provisions of our equity incentive plan, optionees are permitted to use the value of common stock they own in a stock swap transaction or use a net settlement method to pay the exercise price of stock options. As of December 31, 2017, the Company had $3,000 of unrecognized compensation costs related to the stock option plan. The cost of the stock option plan is being amortized over a three-year vesting period. Restricted Stock Restricted stock is accounted for as a fixed grant 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 may be 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 Value Nonvested at December 31, 2014 226,733 $ 17.39 Granted 3,600 26.33 Vested 113,332 17.39 Forfeited 2,459 17.36 Nonvested at December 31, 2015 114,542 $ 17.67 Granted — — Vested 112,142 17.49 Forfeited — — Nonvested at December 31, 2016 2,400 $ 26.23 Granted 9,604 29.53 Vested 1,200 26.23 Forfeited — — Nonvested at December 31, 2017 10,804 $ 29.16 During the year ended December 31, 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 the grant. As of December 31, 2017, the Company had $246,000 of unrecognized compensation costs related to restricted stock. During the year ended December 31, 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 December 31, 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 December 31, 2017, the Company had $194,000 of unrecognized compensation costs related to these PRSUs. Performance will be measured over a three-year period and will be cliff vested. During the year ended December 31, 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 date of grant: $29.53 Annualized volatility (based on 2.60 year historical volatility as of the grant date): 15.7% Annual dividend preceeding 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 December 31, 2017 2,881 $ 24.44 As of December 31, 2017, the Company had $37,000 of unrecognized compensation costs related to the PRSUs that are based on a market condition. Performance will be measured over a three-year period and will be cliff vested.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2017
Earnings Per Share
Earnings Per Share	(20) 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 resticted 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: For the Year Ended December 31, (Dollars in thousands, except per share data) 2017 2016 2015 Net income $ 14,962 $ 16,347 $ 14,748 Income allocated to participating securities (27) (126) (297) Net income available to common shareholders $ 14,935 $ 16,221 $ 14,451 Weighted-average number of shares used in: Basic earnings per share 9,273,783 9,093,385 9,073,015 Dilutive common stock equivalents: Stock options and restricted stock units 258,941 218,590 190,252 Diluted earnings per share 9,532,724 9,311,975 9,263,267 Net income per common share, basic $ 1.61 $ 1.78 $ 1.59 Net income per common share, diluted $ 1.57 $ 1.74 $ 1.56

Other Comprehensive Loss

Other Comprehensive Loss	12 Months Ended
	Dec. 31, 2017
Other Comprehensive Loss
Other Comprehensive Loss	(21) Other Comprehensive 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 December 31, 2017: Balances at beginning of year $ 5,284 $ — $ 32 $ 5,316 Other comprehensive loss, net of taxes 373 — 5 378 Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss 373 — 5 378 Balances at end of year $ 5,657 $ — $ 37 $ 5,694 December 31, 2016: Balances at beginning of year $ 5,044 $ 147 $ 45 $ 5,236 Other comprehensive loss (income), net of taxes 240 (147) (13) 80 Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss (income) 240 (147) (13) 80 Balances at end of year $ 5,284 $ — $ 32 $ 5,316 December 31, 2015: Balances at beginning of year $ 5,032 $ 284 $ 72 $ 5,388 Other comprehensive loss (income), net of taxes 12 (137) (27) (152) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss (income) 12 (137) (27) (152) Balances at end of year $ 5,044 $ 147 $ 45 $ 5,236 The table below presents the tax effect on each component of accumulated other comprehensive loss: Year Ended December 31, 2017 2016 2015 Pretax After Tax Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Amount Tax Amount Unfunded pension liability $ 509 $ (136) $ 373 $ 361 $ (121) $ 240 $ 20 $ (8) $ 12 Noncredit related loss on trust preferred securities — — — (242) 95 (147) (226) 89 (137) Unrealized loss on securities 9 (4) 5 (22) 9 (13) (45) 18 (27) Total $ 518 $ (140) $ 378 $ 97 $ (17) $ 80 $ (251) $ 99 $ (152)

Commitments

Commitments	12 Months Ended
	Dec. 31, 2017
Commitments
Commitments	(22) Commitments (a) Loan Commitments Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any terms or conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on an individual basis. The Company’s policy is to require suitable collateral, primarily real estate, to be provided by customers prior to disbursement of approved loans. At December 31, 2017 and 2016, the Company had loan commitments aggregating to $15.5 million (interest rates from 2.875% to 4.125%) and $50.5 million (interest rates from 2.500% to 4.625%), respectively, primarily consisting of fixed-rate residential first mortgage loans. In addition to commitments to originate loans, at December 31, 2017 and 2016, the Company had $27.2 million and $28.6 million, respectively, in unused lines of credit to borrowers. (b) Lease Commitments The Company leases a majority of its premises under operating leases expiring on various dates through 2029. Total rental expense comprised minimum rentals of $3.0 million, $2.9 million, and $2.9 million for the years ended December 31, 2017, 2016, and 2015, respectively. At December 31, 2017, future minimum rental commitments under all noncancelable operating leases are as follows: (Dollars in thousands) 2018 $ 2,809 2019 2,353 2020 1,919 2021 1,463 2022 1,293 Thereafter 4,557 Total $ 14,394 Certain leases are renegotiable during the period of the lease or have renewal options at the expiration of the lease term. The majority of lease agreements relates to real estate and generally provides that the Company pay taxes, maintenance, insurance, and certain other operating expenses applicable to the leased premises. In addition, the Company leases to a tenant certain property that it owns. Future minimum rental income for this noncancelable lease is as follows: (Dollars in thousands) 2018 $ 110 2019 110 2020 110 2021 110 2022 — Thereafter — Total $ 440 Rental income comprised of minimum rentals for 2017, 2016, and 2015 was approximately $110,000 each year. (c) Reserve Requirements The Company is required by the Federal Reserve Bank to maintain reserves based on the amount of deposits held. The reserve requirement at December 31, 2017 and 2016 was $12.8 million and $10.7 million, respectively, and the Company met such requirements.

Regulatory Capital and Supervis

Regulatory Capital and Supervision	12 Months Ended
	Dec. 31, 2017
Regulatory Capital and Supervision
Regulatory Capital and Supervision	(23) Regulatory Capital and Supervision Territorial Savings Bank and the Company are subject to various regulatory capital requirements, including a risk-based capital measure. The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to broad risk categories. Effective January 1, 2015, the well capitalized threshold for Tier 1 risk-based capital was increased from 6.0% to 8.0% and a new capital standard, common equity tier 1 risk-based capital, was implemented with a 6.5% ratio requirement for a financial institution to be considered well capitalized. Additionally, effective January 1, 2015, consolidated regulatory capital requirements identical to those applicable to the subsidiary depository institutions became applicable to savings and loan holding companies over $1.0 billion in assets, such as the Company. The capital requirements become fully-phased in on January 1, 2019. At December 31, 2017, Territorial Savings Bank and the Company exceeded all of the fully-phased in regulatory capital requirements and are considered to be “well capitalized” under regulatory guidelines. The table below present the fully-phased in capital required to be considered “well-capitalized” as a percentage of total and risk-weighted assets and the percentage and the total amount of capital maintained for Territorial Savings Bank and the Company at December 31, 2017 and 2016: (Dollars in thousands) Required Ratio Actual Amount Actual Ratio December 31, 2017: Tier 1 Leverage Capital Territorial Savings Bank 5.00 % $ 218,826 11.04 % Territorial Bancorp Inc. 5.00 % $ 240,548 12.13 % Common Equity Tier 1 Risk-Based Capital (1) Territorial Savings Bank 9.00 % $ 218,826 23.31 % Territorial Bancorp Inc. 9.00 % $ 240,548 25.62 % Tier 1 Risk-Based Capital (1) Territorial Savings Bank 10.50 % $ 218,826 23.31 % Territorial Bancorp Inc. 10.50 % $ 240,548 25.62 % Total Risk-Based Capital (1) Territorial Savings Bank 12.50 % $ 221,460 23.59 % Territorial Bancorp Inc. 12.50 % $ 243,182 25.90 % December 31, 2016: Tier 1 Leverage Capital Territorial Savings Bank (2) 9.00 % $ 219,365 11.76 % Territorial Bancorp Inc. 5.00 % $ 235,102 12.60 % Common Equity Tier 1 Risk-Based Capital (1) Territorial Savings Bank 9.00 % $ 219,365 25.30 % Territorial Bancorp Inc. 9.00 % $ 235,102 27.11 % Tier 1 Risk-Based Capital (1) Territorial Savings Bank 10.50 % $ 219,365 25.30 % Territorial Bancorp Inc. 10.50 % $ 235,102 27.11 % Total Risk-Based Capital (1) Territorial Savings Bank 12.50 % $ 221,912 25.59 % Territorial Bancorp Inc. 12.50 % $ 237,649 27.41 % (1) The required Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital and Total Risk-Based Capital ratios are based on the fully-phased in capital ratios in the Basel III capital regulations plus the 2.50% capital conservation buffer that becomes effective on January 1, 2019. (2) On July 10, 2014, Territorial Savings Bank became a member of the Federal Reserve System. As a condition of membership, Territorial Savings Bank was required to maintain a Tier 1 Leverage Capital ratio of 9.00% for three years. Prompt Corrective Action provisions define specific capital categories based on an institution’s capital ratios. However, the regulators may impose higher minimum capital standards on individual institutions or may downgrade an institution from one capital category to a lower category because of safety and soundness concerns. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Prompt Corrective Action provisions impose certain restrictions on institutions that are undercapitalized. The restrictions imposed become increasingly more severe as an institution’s capital category declines from “undercapitalized” to “critically undercapitalized.” At December 31, 2017 and 2016, the Bank’s capital ratios exceeded the minimum capital thresholds for a “well-capitalized” institution. There are no conditions or events that have changed the institution’s category under the capital guidelines. Depending on the amount of dividends to be paid, the Bank is required to either notify or make application to the Federal Reserve Bank before dividends are paid to the parent company.

Contingencies

Contingencies	12 Months Ended
	Dec. 31, 2017
Contingencies
Contingencies	(24) Contingencies The Company is involved in various claims and legal actions arising out of the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated balance sheets or consolidated statements of income.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2017
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(25) 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 72 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 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 December 31, 2017 Assets Cash and cash equivalents $ 32,089 $ 32,089 $ 32,089 $ — $ — Investment securities available for sale 2,851 2,851 — 2,851 — Investment securities held to maturity 404,792 406,663 — 405,818 845 Loans held for sale 403 414 — 414 — Loans receivable, net 1,488,971 1,505,097 — — 1,505,097 FHLB stock 6,541 6,541 — 6,541 — FRB stock 3,103 3,103 — 3,103 — Accrued interest receivable 5,142 5,142 7 1,045 4,090 Interest rate contracts 8 8 — 8 — Liabilities Deposits 1,597,295 1,595,992 — 1,285,070 310,922 Advances from the Federal Home Loan Bank 107,200 107,019 — 107,019 — Securities sold under agreements to repurchase 30,000 29,846 — 29,846 — Accrued interest payable 575 575 — 115 460 Interest rate contracts 8 8 — 8 — 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 December 31, 2017 and 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 December 31, 2017 Interest rate contracts — assets $ — $ 8 $ — $ 8 Interest rate contracts — liabilities — (8) — (8) Available-for-sale investments — 2,851 — 2,851 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 pricing models that consider bid and ask prices and prices at which similar securities traded. The table below presents the balance of assets measured at fair value on a nonrecurring basis as of December 31, 2017 and 2016 and the related gains and losses for the years then ended: Fair Value (Dollars in thousands) Adjustment Date Level 1 Level 2 Level 3 Total Total Gains (Losses) December 31, 2017 Impaired loans 3/31/2017 $ — $ 87 $ — $ 87 $ (11) December 31, 2016 Trust preferred securities 9/30/2016 $ — $ — $ 1,066 $ 1,066 $ 242 Mortgage servicing assets 6/30/2016 — — 341 341 (49) Impaired loans 8/31/2016 — 64 — 64 (33) Loans held for sale 12/31/2016 — 1,601 — 1,601 (1) The fair value of trust preferred securities is determined using a discounted cash flow model. The assumptions used in the discounted cash flow model are discussed above. Gains and losses on trust preferred securities that are credit related are included in net other-than-temporary impairment losses in the consolidated statements of income. Gains and losses on trust preferred securities that are not credit related are included in other comprehensive income in the consolidated statements of comprehensive income. Mortgage servicing assets are valued using a discounted cash flow model. Assumptions used in the model include mortgage prepayment speeds, discount rates and cost of servicing. Losses on mortgage servicing assets are included in service fees on loan and deposit accounts in the consolidated statements of income. The fair value of impaired loans is determined using the value of collateral less estimated selling costs. 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, in dollars) $ 65

Parent Company Only

Parent Company Only	12 Months Ended
	Dec. 31, 2017
Parent Company Only
Parent Company Only	(26) Parent Company Only Presented below are the condensed balance sheet, statement of income, and statement of cash flows for Territorial Bancorp Inc. Condensed Balance Sheet December 31, (Dollars in thousands) 2017 2016 Assets Cash $ 20,093 $ 15,288 Investment in Territorial Savings Bank 213,132 214,050 Receivable from Territorial Savings Bank 1,539 373 Prepaid expenses and other assets 141 81 Total assets $ 234,905 $ 229,792 Liabilities and Equity Other liabilities $ 51 $ 6 Equity 234,854 229,786 Total liabilities and equity $ 234,905 $ 229,792 Condensed Statement of Income For the Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Interest and dividend income: Dividends from Territorial Savings Bank $ 16,200 $ 7,500 $ 14,000 Interest-earning deposit with Territorial Savings Bank 49 34 29 Total interest and dividend income 16,249 7,534 14,029 Noninterest expense: Salaries 37 40 34 Other general and administrative expenses 989 745 829 Total noninterest expense 1,026 785 863 Income before income taxes and equity in undistributed earnings in subsidiaries 15,223 6,749 13,166 Income taxes (384) (285) (416) Income before equity in undistributed earnings in subsidiaries 15,607 7,034 13,582 Equity in undistributed earnings of Territorial Savings Bank, net of dividends (645) 9,313 1,166 Net income $ 14,962 $ 16,347 $ 14,748 Condensed Statement of Cash Flows For the Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 14,962 $ 16,347 $ 14,748 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of Territorial Savings Bank, net of dividends 645 (9,313) (1,166) ESOP expense 1,529 1,353 1,210 Net (increase) decrease in prepaid expenses and other assets (1,226) 659 1,170 Net increase (decrease) in other liabilities 27 (18) (18) Net cash provided by operating activities 15,937 9,028 15,944 Cash flows from investing activities: Investment in Territorial Savings Bank — — — Net cash used in investing activities — — — Cash flows from financing activities: Proceeds from issuance of common stock — 566 17 Repurchases of common stock (9) (1,674) (9,326) Cash dividends paid (11,123) (8,409) (7,013) Net cash used in financing activities (11,132) (9,517) (16,322) Net increase (decrease) in cash 4,805 (489) (378) Cash at beginning of the period 15,288 15,777 16,155 Cash at end of the period $ 20,093 $ 15,288 $ 15,777

Unaudited Quarterly Financial I

Unaudited Quarterly Financial Information	12 Months Ended
	Dec. 31, 2017
Unaudited Quarterly Financial Information
Unaudited Quarterly Financial Information	(27) Unaudited Quarterly Financial Information First Second Third Fourth Quarter Quarter Quarter Quarter Full Year (Dollars in thousands, except per share data) 2017: Interest income $ 16,781 $ 16,777 $ 17,177 $ 17,598 $ 68,333 Interest expense 2,121 2,253 2,518 2,697 9,589 Net interest income 14,660 14,524 14,659 14,901 58,744 Provision (reversal of provision) for loan losses 71 (123) 54 50 52 Net interest income after provision for loan losses 14,589 14,647 14,605 14,851 58,692 Noninterest income 1,022 1,059 909 856 3,846 Noninterest expense 8,707 8,754 8,761 10,252 36,474 Income before income taxes 6,904 6,952 6,753 5,455 26,064 Income taxes 2,583 2,651 2,580 3,288 11,102 Net income 4,321 4,301 4,173 2,167 14,962 Basic earnings per share 0.47 0.46 0.45 0.23 1.61 Diluted earnings per share 0.46 0.45 0.44 0.23 1.57 Cash dividends declared per common share 0.20 0.20 0.30 0.50 1.20 First Second Third Fourth Quarter Quarter Quarter Quarter Full Year (Dollars in thousands, except per share data) 2016: Interest income $ 16,380 $ 16,543 $ 16,669 $ 16,481 $ 66,073 Interest expense 1,883 1,944 1,964 2,053 7,844 Net interest income 14,497 14,599 14,705 14,428 58,229 Provision for loan losses 28 84 107 91 310 Net interest income after provision for loan losses 14,469 14,515 14,598 14,337 57,919 Noninterest income 886 1,134 1,003 1,071 4,094 Noninterest expense 9,059 8,988 8,645 8,187 34,879 Income before income taxes 6,296 6,661 6,956 7,221 27,134 Income taxes 2,512 2,624 2,792 2,859 10,787 Net income 3,784 4,037 4,164 4,362 16,347 Basic earnings per share 0.41 0.44 0.45 0.48 1.78 Diluted earnings per share 0.40 0.43 0.44 0.46 1.74 Cash dividends declared per common share 0.18 0.18 0.18 0.38 0.92

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2017
Subsequent Events
Subsequent Events	(28) Subsequent Events On January 25, 2018, the Board of Directors of Territorial Bancorp Inc. declared a quarterly cash dividend of $0.20 per share of common stock. The dividend was paid on February 22, 2018 to stockholders of record as of February 8, 2018.

Summary of Significant Accoun37

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Principles of Consolidation	(b) Principles of Consolidation The consolidated financial statements include the accounts and results of operations of Territorial Bancorp Inc. and Territorial Savings Bank and its wholly-owned subsidiaries, Territorial Real Estate Co., Inc. and Territorial Financial Services, Inc. Significant intercompany balances and transactions have been eliminated in consolidation.
Cash and Cash Equivalents	(c) Cash and Cash Equivalents Cash and cash equivalents includes cash and due from banks, interest-bearing deposits in other banks, federal funds sold, and short-term, highly liquid investments with original maturities of three months or less.
Investment Securities	(d) Investment Securities The Company classifies and accounts for its investment securities as follows: (1) held-to-maturity debt securities in which the Company has the positive intent and ability to hold to maturity are reported at amortized cost; (2) trading securities that are purchased for the purpose of selling in the near term are reported at fair value, with unrealized gains and losses included in current earnings; and (3) available-for-sale securities not classified as either held-to-maturity or trading securities are reported at fair value, with unrealized gains and losses excluded from current earnings and reported as a separate component of equity. At December 31, 2017, the Company classified all of its investments, except $2.9 million of securities, as held-to-maturity. At December 31, 2016, the Company classified all of its investments as held-to-maturity. A decline in the market value of any available-for-sale or held-to-maturity security below cost, that is deemed to be other than temporary, results in an impairment to reduce the carrying amount to fair value. To determine whether impairment is other than temporary, the Company considers the type of the investment, the cause of the decline in value and the amount and duration of the decline in value. It also considers whether it has the intent and ability not to sell and would not be required to sell for a sufficient period of time to recover the remaining amortized cost basis. Gains or losses on the sale of investment securities are computed using the specific-identification method. The Company amortizes premiums and accretes discounts associated with investment securities using the interest method over the contractual life of the respective investment security. Such amortization and accretion is included in the interest income line item in the consolidated statements of income. Interest income is recognized when earned.
Loans Receivable	(e) Loans Receivable This policy applies to all loan classes. Loans receivable are stated at the principal amount outstanding, less the allowance for loan losses, loan origination fees and costs, and commitment fees. Interest on loans receivable is accrued as earned. The Company has a policy of placing loans on a nonaccrual basis when 90 days or more contractually delinquent or when, in the opinion of management, collection of all or part of the principal balance appears doubtful. For nonaccrual loans, the Company records payments received as a reduction in principal. The Company, considering current information and events regarding the borrowers’ ability to repay their obligations, considers a loan to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is considered to be impaired, the amount of the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if the loan is considered to be collateral dependent, based on the fair value of the collateral less estimated costs to sell. Impairment losses are written off against the allowance for loan losses. For nonaccrual impaired loans, the Company records payments received as a reduction in principal. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current and full payment of principal and interest is expected.
Loans Held for Sale	(f) Loans Held for Sale Loans held for sale are stated at the lower of aggregate cost or market value. Net fees and costs of originating loans held for sale are deferred and are included in the basis for determining the gain or loss on sales of loans held for sale.
Deferred Loan Origination Fees and Unearned Loan Discounts	(g) Deferred Loan Origination Fees and Unearned Loan Discounts Loan origination and commitment fees and certain direct loan origination costs are being deferred, and the net amount is recognized over the life of the related loan as an adjustment to yield. Net deferred loan fees are amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Net unamortized fees on loans paid in full are recognized as a component of interest income.
Real Estate Owned	(h) Real Estate Owned Real estate owned is valued at the time of foreclosure at fair value, less estimated cost to sell, thereby establishing a new cost basis. The Company obtains appraisals based on recent comparable sales to assist management in estimating the fair value of real estate owned. Subsequent to acquisition, real estate owned is valued at the lower of cost or fair value, less estimated cost to sell. Declines in value are charged to expense through a direct write-down of the asset. Costs related to holding real estate are charged to expense while costs related to development and improvements are capitalized. Gains from the sale of real estate owned, if any, are recognized when title has passed, minimum down payment requirements are met, the terms of any notes received are such as to satisfy continuing investment requirements, and the Company is relieved of any requirements for continued involvement with the properties. If the minimum down payment or the continuing investment is not adequate to meet the criteria specified in the Property, Plant and Equipment topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), the Company will defer income recognition and account for such sales using alternative methods, such as installment, deposit, or cost recovery.
Allowance for Loan Losses	(i) Allowance for Loan Losses The Company maintains an allowance adequate to cover Management’s estimate of probable loan losses as of the balance sheet date. The Company’s allowance for loan losses is maintained at a level considered adequate to provide for losses that can be estimated based upon specific and general conditions. All loan losses are charged, and all recoveries are credited, to the allowance for loan losses. Additions to the allowance for loan losses are provided by charges to income based on various factors, which, in the Company’s judgment, deserve current recognition in estimating probable losses. Charge-offs to the allowance are made when management determines that collectability of all or a portion of a loan is doubtful and available collateral is insufficient to repay the loan. General allowances are established for loan losses on a portfolio basis for loans that do not meet the definition of impaired, in accordance with the Receivables topic of the FASB ASC. The portfolio is grouped into similar risk characteristics, primarily loan type and loan-to-value ratio. The Company applies an estimated loss rate to each loan group. The loss rates applied are based upon its loss experience adjusted, as appropriate, for environmental factors discussed below. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be significantly more than the allowance for loan losses the Company has established, which could have a material negative effect on its financial results. Residential mortgage loans represent the largest segment of the Company’s loan portfolio. All of the residential mortgage loans are secured by a first mortgage on residential real estate in Hawaii and consist primarily of fixed-rate mortgage loans which have been underwritten to Freddie Mac and Fannie Mae guidelines and have similar risk characteristics. The loan loss allowance is determined by first calculating the historical loss rate for this segment of the portfolio. The loss rate may be adjusted for qualitative and environmental factors. The allowance for loan loss is calculated by multiplying the adjusted loss rate by the total loans in this segment of the portfolio. The adjustments to historical loss experience are based on an evaluation of several qualitative and environmental factors, including: · changes in lending policies and procedures, including changes in underwriting standards and collections, charge-off and recovery practices; · changes in international, national, and local economic trends; · changes in the types of loans in the loan portfolio; · changes in the experience and ability of personnel in the mortgage loan origination and loan servicing departments; · changes in the number and amount of delinquent loans and classified assets; · changes in the type and volume of loans being originated; · changes in the value of underlying collateral for collateral dependent loans; · changes in any concentration of credit; and · external factors such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio. The Company also uses historical loss rates adjusted for qualitative and environmental factors to establish loan loss allowances for the following portfolio segments: · home equity loans and lines of credit; and · consumer and other loans. The Company has a limited loss experience for the construction, commercial and other mortgage segment of the loan portfolio. The loan loss allowance on this portfolio segment is determined using the loan loss rate of other financial institutions in the State of Hawaii. The allowance for loan loss is calculated by multiplying the loan loss rate of other financial institutions in the state by the total loans in this segment of the Company’s loan portfolio. The allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. In addition, the unallocated allowance is established to provide for probable losses that have been incurred as of the reporting date but are not reflected in the allocated allowance. While the Company uses the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, as an integral part of their examination process, the bank regulators will periodically review the allowance for loan losses. The bank regulators may require the Company to increase the allowance based on their analysis of information available at the time of their examination.
Transfer of Financial Assets	(j) Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control is surrendered. Control is surrendered when the assets have been isolated from the Company, the transferee obtains the right to pledge or exchange the assets without constraint, and the Company does not maintain effective control over the transferred assets. Mortgage loans sold for cash are accounted for as sales as the above criteria have been met. Mortgage loans may also be packaged into securities that are issued and guaranteed by U.S. government-sponsored enterprises or a U.S. government agency. The Company receives 100% of the mortgage-backed securities issued. Securitizations are not accounted for as sales and no gain or loss is recognized. The mortgage-backed securities received in securitizations are valued at amortized cost and classified as held-to-maturity. Mortgage loan transfers accounted for as sales and securitizations are without recourse, except for normal representations and warranties provided in sales transactions, and the Company may retain the related rights to service the loans. The retained servicing rights create mortgage servicing assets that are accounted for in accordance with the Transfers and Servicing topic of the FASB ASC. Mortgage servicing assets are initially valued at fair value and subsequently at the lower of cost or fair value and are amortized in proportion to and over the period of estimated net servicing income. The Company uses a discounted cash flow model to determine the fair value of retained mortgage servicing rights. Prior to 2010, we retained the servicing rights on residential mortgage loans sold. In 2010, we began selling loans primarily on a servicing-released basis.
Premises and Equipment	(k) Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is principally computed on the straight-line method over the estimated useful lives of the respective assets. The estimated useful life of buildings and improvements is 30 years, furniture, fixtures, and equipment is 3 to 10 years, and automobiles are 3 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset.
Income Taxes	(l) Income Taxes The Company files consolidated federal income tax and consolidated state franchise tax returns. Deferred tax assets and liabilities are recognized using the asset and liability method of accounting for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We establish income tax contingency reserves for potential tax liabilities related to uncertain tax positions. A liability for income tax uncertainties would be recorded for unrecognized tax benefits related to uncertain tax positions where it is more likely than not that the position will be sustained upon examination by a taxing authority. As of December 31, 2017 and 2016, the Company had not recognized a liability for income tax uncertainties in the accompanying consolidated balance sheets because Management concluded that the Company does not have uncertain tax positions. The Company recognizes interest and penalties related to tax liabilities in other interest expense and other general and administrative expenses, respectively, in the consolidated statements of income. Tax years 2014 to 2016 currently remain subject to examination by the Internal Revenue Service and by the Department of Taxation of the State of Hawaii.
Impairment of Long-Lived Assets	(m) Impairment of Long-Lived Assets Long-lived assets, such as premises and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated.
Pension Plan	(n) Pension Plan Pension benefit costs (returns) are charged (credited) to salaries and employee benefits expense, and the corresponding prepaid (accrued) pension cost is recorded in prepaid expenses and other assets or accounts payable and accrued expenses in the consolidated balance sheets. The Company’s policy is to fund pension costs in amounts that will not be less than the minimum funding requirements of the Employee Retirement Income Security Act of 1974 and will not exceed the maximum tax-deductible amounts. The Company generally funds at least the net periodic pension cost, subject to limits and targeted funded status as determined with the consulting actuary.
Supplemental Employee Retirement Plan (SERP)	(o) Supplemental Employee Retirement Plan (SERP) The SERP is a noncontributory supplemental retirement plan covering certain current and former employees of the Company. Benefits in the SERP plan are paid after retirement, in addition to the benefits provided by the Pension Plan. The Company accrues SERP costs over the estimated period until retirement by charging salaries and employee benefits expense in the consolidated statements of income, with a corresponding credit to accounts payable and accrued expenses in the consolidated balance sheets.
Employee Stock Ownership Plan (ESOP)	(p) Employee Stock Ownership Plan (ESOP) The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of stockholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce debt and accrued interest.
Earnings Per Share	(q) Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the sum of the weighted-average number of shares outstanding plus the dilutive effect of stock options and restricted stock. ESOP shares not committed to be released are not considered outstanding. We have two forms of our outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. The computed basic and diluted earnings per share are substantially equivalent using both the two-class and the treasury stock methods of calculating earnings per share.
Common Stock Repurchase Program	(r) Common Stock Repurchase Program In 2016, 2014, 2013, 2011 and 2010, the Company adopted common stock repurchase programs in which shares repurchased reduce the amount of shares issued and outstanding. The repurchased shares may be reissued in connection with share-based compensation plans and for general corporate purposes. As of December 31, 2017 and 2016, the Company had accumulated repurchases of 3,138,153 of the total 3,374,253 shares authorized by the Board of Directors. There were no shares repurchased as part of our common stock repurchase program during 2017. During 2016, shares were repurchased at an average cost of $25.96.
Bank-Owned Life Insurance	(s) Bank-Owned Life Insurance The Company’s investment in bank-owned life insurance is based on cash surrender value. The Company invests in bank-owned life insurance to provide a funding source for benefit plan obligations. Bank-owned life insurance also generally provides noninterest income that is nontaxable. Federal regulations generally limit the investment in bank-owned life insurance to 25% of the Bank’s Tier 1 capital plus the allowance for loan losses. At December 31, 2017, this limit was $55.4 million and the Company had invested $44.2 million in bank-owned life insurance at that date.
Use of Estimates	(t) Use of Estimates The preparation of the consolidated financial statements requires management to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the allowance for loan losses; valuation of certain investment securities and determination as to whether declines in fair value below amortized cost are other than temporary; valuation allowances for deferred income tax assets; mortgage servicing assets; and assets and obligations related to employee benefit plans. Accordingly, actual results could differ from those estimates.
Recently Issued Accounting Pronouncements	(u) Recently Issued Accounting Pronouncements In May 2014, the FASB amended the Revenue Recognition topic of the FASB 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 will not have a significant impact on the Company’s revenue recognition for these key in-scope revenue sources. The Company adopted this amendment effective January 1, 2018, under the modified retrospective approach. 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 material 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 year ended December 31, 2017, the Company recognized in earnings $1.0 million 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 does not expect the adoption of this amendment to have a material effect on its consolidated financial statements. In February 2018, the FASB amended the Income Statement – Reporting Comprehensive Income topic of the FASB ASC. Existing accounting standards require that the tax effects of tax rate changes on deferred taxes be recorded in current income. Deferred taxes previously included in accumulated other comprehensive income are not allowed to be adjusted and may not reflect current tax rates. This amendment allows the reclassification from accumulated other comprehensive income to retained earnings the tax effects resulting from the Tax Cuts and Jobs Act passed in December 2017. The amendment is effective for fiscal years beginning after December 15, 2018, with early adoption permitted in any period for which financial statements have not yet been issued. The Company expects to adopt this amendment during the first quarter of 2018 with the reclassification of $1.1 million of deferred taxes between accumulated other comprehensive income and retained earnings.

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	12 Months Ended
	Dec. 31, 2017
Cash and Cash Equivalents
Schedule of balances of cash and cash equivalents	December 31, (Dollars in thousands) 2017 2016 Cash and due from banks $ 9,114 $ 9,043 Interest-earning deposits in other banks 22,975 52,230 Cash and cash equivalents $ $

Investment Securities (Tables)

Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2017
Investment Securities.
Schedule of amortized cost and fair values of investment securities	Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value December 31, 2017: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,870 $ — $ (19) $ 2,851 Total $ 2,870 $ — $ (19) $ 2,851 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 404,365 $ 6,056 $ (4,603) $ 405,818 Trust preferred securities 427 418 — 845 Total $ 404,792 $ 6,474 $ (4,603) $ 406,663 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 2,870 2,851 Total $ 2,870 $ 2,851 Held-to-maturity: Due within 5 years $ 10 $ 11 Due after 5 years through 10 years 71 71 Due after 10 years 404,711 406,581 Total $ 404,792 $ 406,663
Schedule of realized gains and losses and proceeds from sales of securities held to maturity	(Dollars in thousands) 2017 2016 2015 Proceeds from sales $ 7,446 $ 5,462 $ 7,718 Gross gains 431 370 701 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) December 31, 2017: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,851 $ 19 $ — $ — 1 $ 2,851 $ 19 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 41,163 $ 299 $ 140,200 $ 4,304 49 $ 181,363 $ 4,603 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	(Dollars in thousands) 2017 2016 Balance at January 1, $ 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 December 31, $ 2,403 $ 2,403
Schedule of components of accumulated other comprehensive loss, net of taxes, resulting from other-than-temporarily impaired securities	December 31, (Dollars in thousands) 2017 2016 Noncredit losses on other-than-temporarily impaired securities, net of taxes $ — $ —

Loans Receivable and Allowanc40

Loans Receivable and Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2017
Loans Receivable and Allowance for Loan Losses
Schedule of components of loans receivable	December 31, (Dollars in thousands) 2017 2016 Real estate loans: First mortgages: One- to four-family residential $ 1,444,625 $ 1,289,364 Multi-family residential 10,799 9,551 Construction, commercial and other 21,787 23,346 Home equity loans and lines of credit 12,882 14,805 Total real estate loans 1,490,093 1,337,066 Other loans: Loans on deposit accounts 274 204 Consumer and other loans 4,340 4,360 Total other loans 4,614 4,564 Less: Net unearned fees and discounts (3,188) (3,191) Allowance for loan losses (2,548) (2,452) Total unearned fees, discounts and allowance for loan losses (5,736) (5,643) Loans receivable, net $ 1,488,971 $ 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 2017: Balance, beginning of year $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 Provision (reversal of provision) for loan losses 63 20 (1) (40) 10 52 1,657 539 1 75 232 2,504 Charge-offs (11) — — (26) — (37) Recoveries 75 — — 6 — 81 Net recoveries (charge-offs) 64 — — (20) — 44 Balance, end of year $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 2016: Balance, beginning of year $ 1,380 $ 517 $ 3 $ 72 $ 194 $ 2,166 Provision (reversal of provision) for loan losses 223 1 (1) 59 28 310 1,603 518 2 131 222 2,476 Charge-offs (33) — — (28) — (61) Recoveries 24 1 — 12 — 37 Net recoveries (charge-offs) (9) 1 — (16) — (24) Balance, end of year $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 2015: Balance, beginning of year $ 413 $ 977 $ 5 $ 263 $ 33 $ 1,691 Provision (reversal of allowance) for loan losses 964 (471) (49) (150) 161 455 1,377 506 (44) 113 194 2,146 Charge-offs — — — (53) — (53) Recoveries 3 11 47 12 — 73 Net recoveries (charge-offs) 3 11 47 (41) — 20 Balance, end of year $ 1,380 $ 517 $ 3 $ 72 $ 194 $ 2,166
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 December 31, 2017: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,721 539 1 55 232 2,548 Total ending allowance balance $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 Loans: Ending loan balance: Individually evaluated for impairment $ 4,977 $ — $ 165 $ — $ — $ 5,142 Collectively evaluated for impairment 1,447,326 21,701 12,722 4,628 — 1,486,377 Total ending loan balance $ 1,452,303 $ 21,701 $ 12,887 $ 4,628 $ — $ 1,491,519 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 December 31, 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,977 $ 5,897 Home equity loans and lines of credit 165 228 Total $ 5,142 $ 6,125 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	Average Recorded Interest Income (Dollars in thousands) Investment Recognized 2017: With no related allowance recorded: One- to four-family residential mortgages $ 5,112 $ 58 Home equity loans and lines of credit 175 — Consumer and other — — Total $ 5,287 $ 58 2016: With no related allowance recorded: One- to four-family residential mortgages $ 5,743 $ 72 Home equity loans and lines of credit 161 — Consumer and other 1 — Total $ 5,905 $ 72 2015: With no related allowance recorded: One- to four-family residential mortgages $ 6,642 $ 71 Home equity loans and lines of credit 131 — Consumer and other 9 — Total $ 6,782 $ 71
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 December 31, 2017: One- to four-family residential mortgages $ — $ 1,207 $ 1,589 $ 2,796 $ 1,438,725 $ 1,441,521 $ 4,062 $ — Multi-family residential mortgages — — — — 10,782 10,782 — — Construction, commercial and other mortgages — — — — 21,701 21,701 — — Home equity loans and lines of credit — — 41 41 12,846 12,887 165 — Loans on deposit accounts — — — — 274 274 — — Consumer and other 4 — — 4 4,350 4,354 — — Total $ 4 $ 1,207 $ 1,630 $ 2,841 $ 1,488,678 $ 1,491,519 $ 4,227 $ — 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 December 31, 2017: One- to four-family residential mortgages 4 $ 915 5 $ 1,074 $ 1,989 Home equity loans and lines of credit — — 1 92 92 Total 4 $ 915 6 $ 1,166 $ 2,081 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

Accrued Interest Receivable (Ta

Accrued Interest Receivable (Tables)	12 Months Ended
	Dec. 31, 2017
Accrued Interest Receivable
Schedule of components of accrued interest receivable	December 31, (Dollars in thousands) 2017 2016 Investment securities $ 1,045 $ 1,064 Loans receivable 4,090 3,658 Interest-bearing deposits 7 10 Total $ 5,142 $ 4,732

Mortgage Servicing Assets (Tabl

Mortgage Servicing Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Mortgage Servicing Assets.
Schedule of changes in mortgage servicing assets	(Dollars in thousands) 2017 2016 Balance at beginning of year $ 307 $ 426 Additions 3 — Impairments — (49) Amortization (47) (70) Balance at end of year $ 263 $ 307
Schedule of gross carrying values, accumulated amortization, and net carrying values of mortgage servicing assets	December 31, (Dollars in thousands) 2017 2016 Gross carrying value $ 1,310 $ 1,307 Accumulated amortization (1,047) (1,000) Net carrying value $ 263 $ 307
Schedule of estimated future amortization expense for mortgage servicing assets	(Dollars in thousands) 2018 $ 48 2019 32 2020 26 2021 22 2022 20 Thereafter 115 Total $ 263
Schedule of fair values and key assumptions used in determining fair values of mortgage servicing assets	2017 2016 Fair value, beginning of year (in thousands) $ 368 $ 441 Fair value, end of year (in thousands) 311 368 Weighted average discount rate % % Weighted average prepayment speed assumption (PSA prepayment speed) Annual cost to service (per loan) $ 70 $ 65

Interest Rate Lock and Forwar43

Interest Rate Lock and Forward Loan Sale Commitments (Tables)	12 Months Ended
	Dec. 31, 2017
Interest Rate Lock and Forward Loan Sale Commitments
Schedule of location of assets and liabilities related to derivatives	Asset Derivatives Liability Derivatives Location on Fair Value at December 31, Fair Value at December 31, (Dollars in thousands) Balance Sheet 2017 2016 2017 2016 Interest rate contracts Prepaid expenses and other assets $ 8 $ 104 $ — $ — Interest rate contracts Accounts payable and accrued expenses — — 8 104 Total derivatives $ 8 $ 104 $ 8 $ 104
Schedule of location of gains and losses related to derivatives	Location of Loss on (Dollars in thousands) Statement of Income 2017 2016 Interest rate contracts Gain on sale of loans $ — $ 6

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Premises and Equipment
Schedule of premises and equipment	December 31, (Dollars in thousands) 2017 2016 Land $ 585 $ 585 Buildings and improvements 1,301 1,045 Leasehold improvements 13,915 13,005 Furniture, fixtures and equipment 5,727 5,261 Automobiles 115 115 21,643 20,011 Less accumulated depreciation and amortization (15,962) (16,066) 5,681 3,945 Construction in progress 40 382 Total $ 5,721 $ 4,327

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2017
Deposits
Summary of deposit accounts by type with their respective weighted-average interest rates	December 31, 2017 2016 (Dollars in thousands) Amount Rate Amount Rate Non-interest bearing $ 49,725 - % $ 47,703 - % Savings accounts 1,040,248 0.46 1,022,159 0.41 Certificates of deposit 312,225 1.34 236,043 0.96 Money market 5,578 0.43 3,406 0.44 Checking and Super NOW 189,519 0.02 183,889 0.02 Total $ 1,597,295 0.56 % $ 1,493,200 0.43 %
Schedule of maturity of certificate of deposit accounts	Maturing in: 2018 $ 165,706 2019 70,272 2020 31,423 2021 20,458 2022 24,366 Total $ 312,225
Schedule of interest expense by type of deposit	(Dollars in thousands) 2017 2016 2015 Savings $ 4,445 $ 4,162 $ 3,670 Certificates of deposit and money market 3,182 1,734 1,118 Checking and Super NOW 39 37 33 Total $ 7,666 $ 5,933 $ 4,821

Advances from the Federal Hom46

Advances from the Federal Home Loan Bank (Tables)	12 Months Ended
	Dec. 31, 2017
Advances from the Federal Home Loan Bank
Schedule of advances outstanding	December 31, 2017 2016 Weighted Weighted Average Average (Dollars in thousands) Amount Rate Amount Rate Due within one year $ 46,200 1.39 % $ — — % Due over 1 year to 2 years 31,000 1.79 37,000 1.33 Due over 2 years to 3 years 15,000 1.85 22,000 1.66 Due over 3 years to 4 years 15,000 2.32 10,000 1.66 Total $ 107,200 1.70 % $ 69,000 1.49 %

Securities Sold Under Agreeme47

Securities Sold Under Agreements to Repurchase (Tables)	12 Months Ended
	Dec. 31, 2017
Securities Sold Under Agreements to Repurchase
Summary of securities sold under agreements to repurchase	2017 2016 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ — — % $ 25,000 1.46 % Over 1 year to 2 years 25,000 1.66 — — Over 2 years to 3 years 5,000 1.65 25,000 1.66 Over 3 years to 4 years — — 5,000 1.65 Total $ 30,000 1.66 % $ 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 $ 39,834 $ 39,986 $ 30,000 $ 9,986 17

Offsetting of Financial Liabi48

Offsetting of Financial Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Offsetting of Financial Liabilities
Schedule of securities sold under agreements to repurchase subject to conditional right of offset	Net Amount of Gross Amount Not Offset in the Gross Amount Gross Amount Liabilities Balance Sheet of Recognized Offset in the Presented in the Financial Cash Collateral (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Pledged Net Amount December 31, 2017: Securities sold under agreements to repurchase $ 30,000 $ — $ 30,000 $ 30,000 $ — $ — December 31, 2016: Securities sold under agreements to repurchase $ 55,000 $ — $ 55,000 $ 55,000 $ — $ —

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Taxes
Schedule of allocation of federal and state income taxes between current and deferred provisions	(Dollars in thousands) 2017 2016 2015 Current Federal $ 6,219 $ 7,487 $ 10,176 State 1,447 1,810 1,833 7,666 9,297 12,009 Deferred Federal 3,273 1,339 (2,147) State 163 151 (76) 3,436 1,490 (2,223) Total $ 11,102 $ 10,787 $ 9,786
Schedule of reconciliation of tax provision based on statutory corporate rate on pretax income and provision for taxes	(Dollars in thousands) 2017 2016 2015 Income tax expense at statutory rate $ 9,123 $ 9,497 $ 8,587 Income tax effect of: Other tax-exempt income (317) (338) (359) Share-based compensation 68 87 State income taxes, net of federal income tax benefits 1,104 1,057 1,104 Tax benefit from the exercise of stock options (1) (1,046) — — Write-down of deferred income taxes (2) 2,054 — — Other 182 503 367 Total income tax expense $ 11,102 $ 10,787 $ 9,786 Effective income tax rate 42.59 % 39.75 % 39.89 % (1) Starting in 2017 a new accounting standard requires that any excess tax benefits resulting from the exercise of stock options be recognized in income tax expense. Prior to the adoption of the new standard, the excess tax benefits were recorded as additional paid-in-capital. (2) Income tax expense for 2017 included a $2.1 million write-down of deferred income tax assets that resulted when the federal corporate tax rate was lowered from 35% to 21% due to the Tax Cuts and Jobs Act.
Schedule of components of income taxes payable (receivable)	December 31, (Dollars in thousands) 2017 2016 Current taxes payable (receivable): Federal $ (1,571) $ (122) State 1,483 1,616 $ (88) $ 1,494 Deferred taxes receivable: Federal $ (3,178) $ (6,350) State (1,431) (1,555) $ (4,609) $ (7,905)
Schedule of tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities	December 31, (Dollars in thousands) 2017 2016 Deferred tax assets: Premises and equipment $ 966 $ 1,737 Hawaii franchise tax 440 560 Unfunded pension liability 1,229 1,550 Allowance for loan losses 678 969 Impaired asset write-down 724 1,020 Employee benefit plans 2,580 3,785 Equity incentive plan 420 1,330 Unrealized losses on securities available-for-sale 17 21 Deferred compensation 453 744 Other 137 215 7,644 11,931 Deferred tax liabilities: Net deferred loan fees 2,676 3,566 FHLB stock dividends 126 196 Prepaid expense 163 143 Premiums on loans sold 70 121 3,035 4,026 Net deferred tax assets $ 4,609 $ 7,905

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	12 Months Ended
	Dec. 31, 2017
Employee Benefit Plans
Schedule of status of Pension Plan and SERP	Pension Plan SERP December 31, (Dollars in thousands) 2017 2016 2017 2016 Accumulated benefit obligation at end of year $ 19,314 $ 17,496 $ 9,242 $ 9,044 Change in projected benefit obligation: Benefit obligation at beginning of year $ 17,496 $ 17,321 $ 9,044 $ 8,891 Service cost 193 194 75 38 Interest cost 763 752 140 132 Actuarial loss (gain) 1,670 (90) — — Benefits paid (808) (681) (17) (17) Benefit obligation at end of year 19,314 17,496 9,242 9,044 Change in plan assets: Fair value of plan assets at beginning of year 14,804 13,140 — — Actual return on plan assets 1,931 345 — — Employer contributions — 2,000 17 17 Benefits paid (808) (681) (17) (17) Fair value of plan assets at end of year 15,927 14,804 — — Funded status at end of year $ (3,387) $ (2,692) $ (9,242) $ (9,044) Amounts recognized in the consolidated balance sheets: Accounts payable and accrued expenses - liability $ (3,387) $ (2,692) $ (9,242) $ (9,044) Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 9,096 $ 8,582 $ — $ — Prior service cost 149 154 — — Accumulated other comprehensive loss, before tax $ 9,245 $ 8,736 $ — $ —
Schedule of changes recognized in accumulated other comprehensive loss for Pension Plan	Pension Plan Year Ended December 31, (Dollars in thousands) 2017 2016 Accumulated other comprehensive loss at beginning of year, before tax $ 8,736 $ 8,375 Actuarial net loss arising during the period 764 580 Amortizations (recognized in net periodic benefit cost): Actuarial loss (250) (214) Prior service cost (5) (5) Total recognized in other comprehensive loss 509 361 Accumulated other comprehensive loss at end of year, before tax $ 9,245 $ 8,736
Schedule of weighted average assumptions used to determine benefit obligations	Pension Plan SERP Year Ended December 31, 2017 2016 2017 2016 Assumptions used to determine the year-end benefit obligations: Discount rate 3.70 % 4.30 % 5.04 % 5.05 % Rate of compensation increase N/A N/A 5.00 % 5.00 %
Schedule of Pension Plan's assets measured at fair value	Fair Value of Measurements at Report Date Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Total Fair Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) December 31, 2017: Cash $ 846 $ 846 $ — $ — Equities 11,814 11,814 — — Mutual funds (1) 3,267 3,267 — — Total $ 15,927 $ 15,927 $ — $ — December 31, 2016: Cash $ 1,839 $ 1,839 $ — $ — Equities 9,794 9,794 — — Mutual funds (1) 3,171 3,171 — — Total $ 14,804 $ 14,804 $ — $ — (1) This category includes mutual funds that invest in equities and bonds. The mutual fund managers have the ability to change the amounts invested in equities and bonds depending on their investment outlook.
Schedule of estimated future benefit payments reflecting expected future service	Pension (Dollars in thousands) Plan SERP 2018 $ 954 $ 17 2019 1,007 6,488 2020 1,039 150 2021 1,092 2,320 2022 1,133 144 2023 - 2027 5,794 665 Total $ 11,019 $ 9,784
Schedule of weighted average assumptions used to determine net periodic benefit cost	Pension Plan SERP Year Ended December 31, (Dollars in thousands) 2017 2016 2015 2017 2016 2015 Assumptions used to determine the net periodic benefit cost: Discount rate 4.30 % 4.40 % 4.10 % 5.03 % 5.05 % 5.06 % Expected return on plan assets 7.25 7.50 7.50 N/A N/A N/A Rate of compensation increase N/A N/A N/A 5.00 5.00 5.00
Schedule of components of net periodic benefit cost	Pension Plan SERP Year Ended December 31, (Dollars in thousands) 2017 2016 2015 2017 2016 2015 Net periodic benefit cost for the year: Service cost $ 193 $ 194 $ 120 $ 75 $ 38 $ 29 Interest cost 763 752 722 140 132 125 Expected return on plan assets (1,026) (1,015) (976) — — — Amortization of prior service cost 5 5 — — — — Recognized actuarial loss 250 214 215 — — — Recognized curtailment loss — — — — — — Net periodic benefit cost $ 185 $ 150 $ 81 $ 215 $ 170 $ 154

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	12 Months Ended
	Dec. 31, 2017
Employee Stock Ownership Plan
Schedule of shares held by the ESOP trust	December 31, 2017 2016 Allocated shares 397,912 372,997 Unearned shares 538,261 587,193 Total ESOP shares 936,173 960,190 Fair value of unearned shares, in thousands $ 16,616 $ 19,283

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2017
Schedule of compensation expense and related tax benefit for all share-based awards	(In thousands) 2017 2016 2015 Compensation expense $ 153 $ 1,789 $ 2,670 Income tax benefit 42 718 1,072
Schedule of stock option activity	Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2014 832,954 $ 17.38 5.68 $ 3,471 Granted 3,600 26.23 9.67 Exercised 1,000 17.36 8 Forfeited 3,254 17.36 Expired — Options outstanding at December 31, 2015 832,300 $ 17.42 4.70 $ 8,588 Granted — Exercised 125,870 17.36 1,378 Forfeited — Expired — Options outstanding at December 31, 2016 706,430 $ 17.43 3.70 $ 10,884 Granted — Exercised 294,887 17.36 Forfeited — Expired — Options outstanding at December 31, 2017 411,543 $ 17.48 2.73 $ 5,509 Options vested and exercisable at December 31, 2017 $ $ 5,503
Summary of certain stock option activity	(In thousands) 2017 2016 2015 Intrinsic value of stock options exercised $ 4,345 $ 1,378 $ 8 Proceeds received from stock options exercised 5,119 2,186 17 Tax benefits realized from stock options exercised 1,601 368 3 Total fair value of stock options that vested 37 4,495 3,854
Restricted Stock
Schedule of restricted stock award activity	Weighted Average Grant Restricted Date Fair Stock Value Nonvested at December 31, 2014 226,733 $ 17.39 Granted 3,600 26.33 Vested 113,332 17.39 Forfeited 2,459 17.36 Nonvested at December 31, 2015 114,542 $ 17.67 Granted — — Vested 112,142 17.49 Forfeited — — Nonvested at December 31, 2016 2,400 $ 26.23 Granted 9,604 29.53 Vested 1,200 26.23 Forfeited — — Nonvested at December 31, 2017 10,804 $ 29.16
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 December 31, 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 December 31, 2017 2,881 $ 24.44

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2017
Earnings Per Share
Schedule of information used to compute basic and diluted earnings per share	For the Year Ended December 31, (Dollars in thousands, except per share data) 2017 2016 2015 Net income $ 14,962 $ 16,347 $ 14,748 Income allocated to participating securities (27) (126) (297) Net income available to common shareholders $ 14,935 $ 16,221 $ 14,451 Weighted-average number of shares used in: Basic earnings per share 9,273,783 9,093,385 9,073,015 Dilutive common stock equivalents: Stock options and restricted stock units 258,941 218,590 190,252 Diluted earnings per share 9,532,724 9,311,975 9,263,267 Net income per common share, basic $ 1.61 $ 1.78 $ 1.59 Net income per common share, diluted $ 1.57 $ 1.74 $ 1.56

Other Comprehensive Loss (Table

Other Comprehensive Loss (Tables)	12 Months Ended
	Dec. 31, 2017
Other Comprehensive 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 December 31, 2017: Balances at beginning of year $ 5,284 $ — $ 32 $ 5,316 Other comprehensive loss, net of taxes 373 — 5 378 Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss 373 — 5 378 Balances at end of year $ 5,657 $ — $ 37 $ 5,694 December 31, 2016: Balances at beginning of year $ 5,044 $ 147 $ 45 $ 5,236 Other comprehensive loss (income), net of taxes 240 (147) (13) 80 Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss (income) 240 (147) (13) 80 Balances at end of year $ 5,284 $ — $ 32 $ 5,316 December 31, 2015: Balances at beginning of year $ 5,032 $ 284 $ 72 $ 5,388 Other comprehensive loss (income), net of taxes 12 (137) (27) (152) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period other comprehensive loss (income) 12 (137) (27) (152) Balances at end of year $ 5,044 $ 147 $ 45 $ 5,236
Schedule of tax effect on each component of accumulated other comprehensive loss	Year Ended December 31, 2017 2016 2015 Pretax After Tax Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Amount Tax Amount Unfunded pension liability $ 509 $ (136) $ 373 $ 361 $ (121) $ 240 $ 20 $ (8) $ 12 Noncredit related loss on trust preferred securities — — — (242) 95 (147) (226) 89 (137) Unrealized loss on securities 9 (4) 5 (22) 9 (13) (45) 18 (27) Total $ 518 $ (140) $ 378 $ 97 $ (17) $ 80 $ (251) $ 99 $ (152)

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments
Schedule of future minimum rental commitments under all noncancelable operating leases	(Dollars in thousands) 2018 $ 2,809 2019 2,353 2020 1,919 2021 1,463 2022 1,293 Thereafter 4,557 Total $ 14,394
Schedule of future minimum rental income for noncancelable lease	(Dollars in thousands) 2018 $ 110 2019 110 2020 110 2021 110 2022 — Thereafter — Total $ 440

Regulatory Capital and Superv56

Regulatory Capital and Supervision (Tables)	12 Months Ended
	Dec. 31, 2017
Regulatory Capital and Supervision
Schedule of regulatory capital ratios	(Dollars in thousands) Required Ratio Actual Amount Actual Ratio December 31, 2017: Tier 1 Leverage Capital Territorial Savings Bank 5.00 % $ 218,826 11.04 % Territorial Bancorp Inc. 5.00 % $ 240,548 12.13 % Common Equity Tier 1 Risk-Based Capital (1) Territorial Savings Bank 9.00 % $ 218,826 23.31 % Territorial Bancorp Inc. 9.00 % $ 240,548 25.62 % Tier 1 Risk-Based Capital (1) Territorial Savings Bank 10.50 % $ 218,826 23.31 % Territorial Bancorp Inc. 10.50 % $ 240,548 25.62 % Total Risk-Based Capital (1) Territorial Savings Bank 12.50 % $ 221,460 23.59 % Territorial Bancorp Inc. 12.50 % $ 243,182 25.90 % December 31, 2016: Tier 1 Leverage Capital Territorial Savings Bank (2) 9.00 % $ 219,365 11.76 % Territorial Bancorp Inc. 5.00 % $ 235,102 12.60 % Common Equity Tier 1 Risk-Based Capital (1) Territorial Savings Bank 9.00 % $ 219,365 25.30 % Territorial Bancorp Inc. 9.00 % $ 235,102 27.11 % Tier 1 Risk-Based Capital (1) Territorial Savings Bank 10.50 % $ 219,365 25.30 % Territorial Bancorp Inc. 10.50 % $ 235,102 27.11 % Total Risk-Based Capital (1) Territorial Savings Bank 12.50 % $ 221,912 25.59 % Territorial Bancorp Inc. 12.50 % $ 237,649 27.41 % (1) The required Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital and Total Risk-Based Capital ratios are based on the fully-phased in capital ratios in the Basel III capital regulations plus the 2.50% capital conservation buffer that becomes effective on January 1, 2019. (2) On July 10, 2014, Territorial Savings Bank became a member of the Federal Reserve System. As a condition of membership, Territorial Savings Bank was required to maintain a Tier 1 Leverage Capital ratio of 9.00% for three years.

Fair Value of Financial Instr57

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value of Financial Instruments
Schedule of estimated fair values of financial instruments	Carrying Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 December 31, 2017 Assets Cash and cash equivalents $ 32,089 $ 32,089 $ 32,089 $ — $ — Investment securities available for sale 2,851 2,851 — 2,851 — Investment securities held to maturity 404,792 406,663 — 405,818 845 Loans held for sale 403 414 — 414 — Loans receivable, net 1,488,971 1,505,097 — — 1,505,097 FHLB stock 6,541 6,541 — 6,541 — FRB stock 3,103 3,103 — 3,103 — Accrued interest receivable 5,142 5,142 7 1,045 4,090 Interest rate contracts 8 8 — 8 — Liabilities Deposits 1,597,295 1,595,992 — 1,285,070 310,922 Advances from the Federal Home Loan Bank 107,200 107,019 — 107,019 — Securities sold under agreements to repurchase 30,000 29,846 — 29,846 — Accrued interest payable 575 575 — 115 460 Interest rate contracts 8 8 — 8 — 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 December 31, 2017 Interest rate contracts — assets $ — $ 8 $ — $ 8 Interest rate contracts — liabilities — (8) — (8) Available-for-sale investments — 2,851 — 2,851 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) December 31, 2017 Impaired loans 3/31/2017 $ — $ 87 $ — $ 87 $ (11) December 31, 2016 Trust preferred securities 9/30/2016 $ — $ — $ 1,066 $ 1,066 $ 242 Mortgage servicing assets 6/30/2016 — — 341 341 (49) Impaired loans 8/31/2016 — 64 — 64 (33) Loans held for sale 12/31/2016 — 1,601 — 1,601 (1)
Schedule of significant unobservable inputs for Level 3 nonrecurring fair value measurements	Unobservable (Dollars in thousands) Fair Value Valuation Technique Input Value December 31, 2016: Trust preferred securities $ 1,066 Discounted cash flow Discount rate Three-month LIBOR plus 20.00% Mortgage servicing assets 341 Discounted cash flow Discount rate 10.50% Prepayment speed (PSA) 158.4 - 203.5 Annual cost to service (per loan, in dollars) $ 65

Parent Company Only (Tables)

Parent Company Only (Tables)	12 Months Ended
	Dec. 31, 2017
Parent Company Only
Condensed Balance Sheet	Condensed Balance Sheet December 31, (Dollars in thousands) 2017 2016 Assets Cash $ 20,093 $ 15,288 Investment in Territorial Savings Bank 213,132 214,050 Receivable from Territorial Savings Bank 1,539 373 Prepaid expenses and other assets 141 81 Total assets $ 234,905 $ 229,792 Liabilities and Equity Other liabilities $ 51 $ 6 Equity 234,854 229,786 Total liabilities and equity $ 234,905 $ 229,792
Condensed Statement of Income	Condensed Statement of Income For the Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Interest and dividend income: Dividends from Territorial Savings Bank $ 16,200 $ 7,500 $ 14,000 Interest-earning deposit with Territorial Savings Bank 49 34 29 Total interest and dividend income 16,249 7,534 14,029 Noninterest expense: Salaries 37 40 34 Other general and administrative expenses 989 745 829 Total noninterest expense 1,026 785 863 Income before income taxes and equity in undistributed earnings in subsidiaries 15,223 6,749 13,166 Income taxes (384) (285) (416) Income before equity in undistributed earnings in subsidiaries 15,607 7,034 13,582 Equity in undistributed earnings of Territorial Savings Bank, net of dividends (645) 9,313 1,166 Net income $ 14,962 $ 16,347 $ 14,748
Condensed Statement of Cash Flows	Condensed Statement of Cash Flows For the Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 14,962 $ 16,347 $ 14,748 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of Territorial Savings Bank, net of dividends 645 (9,313) (1,166) ESOP expense 1,529 1,353 1,210 Net (increase) decrease in prepaid expenses and other assets (1,226) 659 1,170 Net increase (decrease) in other liabilities 27 (18) (18) Net cash provided by operating activities 15,937 9,028 15,944 Cash flows from investing activities: Investment in Territorial Savings Bank — — — Net cash used in investing activities — — — Cash flows from financing activities: Proceeds from issuance of common stock — 566 17 Repurchases of common stock (9) (1,674) (9,326) Cash dividends paid (11,123) (8,409) (7,013) Net cash used in financing activities (11,132) (9,517) (16,322) Net increase (decrease) in cash 4,805 (489) (378) Cash at beginning of the period 15,288 15,777 16,155 Cash at end of the period $ 20,093 $ 15,288 $ 15,777

Unaudited Quarterly Financial59

Unaudited Quarterly Financial Information (Tables)	12 Months Ended
	Dec. 31, 2017
Unaudited Quarterly Financial Information
Schedule of unaudited quarterly financial information	First Second Third Fourth Quarter Quarter Quarter Quarter Full Year (Dollars in thousands, except per share data) 2017: Interest income $ 16,781 $ 16,777 $ 17,177 $ 17,598 $ 68,333 Interest expense 2,121 2,253 2,518 2,697 9,589 Net interest income 14,660 14,524 14,659 14,901 58,744 Provision (reversal of provision) for loan losses 71 (123) 54 50 52 Net interest income after provision for loan losses 14,589 14,647 14,605 14,851 58,692 Noninterest income 1,022 1,059 909 856 3,846 Noninterest expense 8,707 8,754 8,761 10,252 36,474 Income before income taxes 6,904 6,952 6,753 5,455 26,064 Income taxes 2,583 2,651 2,580 3,288 11,102 Net income 4,321 4,301 4,173 2,167 14,962 Basic earnings per share 0.47 0.46 0.45 0.23 1.61 Diluted earnings per share 0.46 0.45 0.44 0.23 1.57 Cash dividends declared per common share 0.20 0.20 0.30 0.50 1.20 First Second Third Fourth Quarter Quarter Quarter Quarter Full Year (Dollars in thousands, except per share data) 2016: Interest income $ 16,380 $ 16,543 $ 16,669 $ 16,481 $ 66,073 Interest expense 1,883 1,944 1,964 2,053 7,844 Net interest income 14,497 14,599 14,705 14,428 58,229 Provision for loan losses 28 84 107 91 310 Net interest income after provision for loan losses 14,469 14,515 14,598 14,337 57,919 Noninterest income 886 1,134 1,003 1,071 4,094 Noninterest expense 9,059 8,988 8,645 8,187 34,879 Income before income taxes 6,296 6,661 6,956 7,221 27,134 Income taxes 2,512 2,624 2,792 2,859 10,787 Net income 3,784 4,037 4,164 4,362 16,347 Basic earnings per share 0.41 0.44 0.45 0.48 1.78 Diluted earnings per share 0.40 0.43 0.44 0.46 1.74 Cash dividends declared per common share 0.18 0.18 0.18 0.38 0.92

Organization (Details)

Organization (Details) $ in Millions	Dec. 31, 2017USD ($)
Plan of Conversion and Reorganization and Registration of Shares
Plan of conversion and reorganization
Liquidation account balance	$ 11

Summary of Significant Accoun61

Summary of Significant Accounting Policies - Description of Business, Investment Securities and Transfer of Financial Assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)item
Description of Business
Number of branches through which loan and deposit products and services are provided to individual customers | item	29
Investment Securities
Investment securities available for sale | $	$ 2,851
Transfer of financial assets
Percentage of receipt on transfer of mortgage-backed securities issued	100.00%

Summary of Significant Accoun62

Summary of Significant Accounting Policies - Premises and Equipment Useful Lives (Details)	12 Months Ended
	Dec. 31, 2017
Buildings and improvements
Premises and equipment
Estimated useful life	30 years
Furniture, fixtures and equipment | Minimum
Premises and equipment
Estimated useful life	3 years
Furniture, fixtures and equipment | Maximum
Premises and equipment
Estimated useful life	10 years
Automobiles
Premises and equipment
Estimated useful life	3 years

Summary of Significant Accoun63

Summary of Significant Accounting Policies - Common Stock Repurchase Program and Forms of Outstanding Common Stock (Details)	12 Months Ended
	Dec. 31, 2017securityshares	Dec. 31, 2016$ / sharesshares
Common stock
Number of different forms of outstanding common stock | security	2
Common Stock Repurchase Program
Common Stock Repurchase Program
Total accumulated shares repurchased	3,138,153	3,138,153
Shares authorized under repurchase program	3,374,253
Repurchase of company common stock, shares	0
Average cost of shares repurchased (in dollars per share) | $ / shares		$ 25.96

Summary of Significant Accoun64

Summary of Significant Accounting Policies - Bank-Owned Life Insurance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Bank-Owned Life Insurance
Amount of investment in bank-owned life insurance	$ 44,201	$ 43,294
Territorial Savings Bank
Bank-Owned Life Insurance
Percentage applied on Tier 1 capital plus allowance for loan losses to calculate ceiling limit of investment	25.00%
Amount of ceiling limit of investment	$ 55,400

Summary of Significant Accoun65

Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
ASU 2016-09 Compensation - Stock Compensation | Employee Stock Options
Recently Issued Accounting Pronouncements
Tax benefits realized from stock options exercised		$ 1
ASU 2018-02 - Income Statement - Reporting Comprehensive Income | Forecast
Recently Issued Accounting Pronouncements
Expected reclassification of deferred taxes between accumulated other comprehensive income and retained earnings	$ 1.1

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash and Cash Equivalents
Cash and due from banks	$ 9,114	$ 9,043
Interest-earning deposits in other banks	22,975	52,230
Cash and cash equivalents	$ 32,089	$ 61,273	$ 65,919	$ 75,060

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Fair Values of Available-for-Sale Securities (Details) $ in Thousands	Dec. 31, 2017USD ($)
Available-for-sale:
Amortized Cost	$ 2,870
Gross Unrealized Losses	(19)
Estimated Fair Value	2,851
U.S. government-sponsored mortgage-backed securities
Available-for-sale:
Amortized Cost	2,870
Gross Unrealized Losses	(19)
Estimated Fair Value	$ 2,851

Investment Securities - Amort68

Investment Securities - Amortized Cost and Fair Values of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Held-to-maturity:
Amortized Cost	$ 404,792	$ 407,656
Gross Unrealized Gains	6,474	7,290
Gross Unrealized Losses	(4,603)	(7,024)
Estimated Fair Value	406,663	407,922
U.S. government-sponsored mortgage-backed securities
Held-to-maturity:
Amortized Cost	404,365	406,498
Gross Unrealized Gains	6,056	7,285
Gross Unrealized Losses	(4,603)	(7,024)
Estimated Fair Value	405,818	406,759
Trust preferred securities
Held-to-maturity:
Amortized Cost	427	1,158
Gross Unrealized Gains	418	5
Estimated Fair Value	$ 845	$ 1,163

Investment Securities - Maturit

Investment Securities - Maturity Schedule of Available-for-Sale Securities (Details) $ in Thousands	Dec. 31, 2017USD ($)
Amortized Cost
Due within 5 years	$ 0
Due after 5 years through 10 years	0
Due after 10 years	2,870
Amortized Cost	2,870
Estimated Fair Value
Due within 5 years	0
Due after 5 years through 10 years	0
Due after 10 years	2,851
Estimated Fair Value	$ 2,851

Investment Securities - Matur70

Investment Securities - Maturity Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Held-to-maturity, Amortized Cost
Due within 5 years	$ 10
Due after 5 years through 10 years	71
Due after 10 years	404,711
Amortized Cost	404,792	$ 407,656
Held-to-maturity, Estimated Fair Value
Due within 5 years	11
Due after 5 years through 10 years	71
Due after 10 years	406,581
Estimated Fair Value	$ 406,663	$ 407,922

Investment Securities - Realize

Investment Securities - Realized Gains and Losses and Proceeds from Sales (Details)	12 Months Ended
	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)security
Realized gains and losses and the proceeds from sales of securities available for sale, held to maturity and trading
Proceeds from sales	$ 7,446,000	$ 5,462,000	$ 7,718,000
Gross gains	$ 431,000	$ 370,000	701,000
Held-to-maturity debt securities | PreTSL XXIV
Realized gains and losses and the proceeds from sales of securities available for sale, held to maturity and trading
Gross gains			$ 61,000
Number of securities sold | security			1
U.S. government-sponsored mortgage-backed 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%

Investment Securities - Securit

Investment Securities - Securities Pledged (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Pledged investment securities
Investment securities pledged to secure public deposit, securities sold under agreement to repurchase and transaction clearing accounts	$ 287.2	$ 239.9

Investment Securities _ Availab

Investment Securities – Available-for-Sale Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands	Dec. 31, 2017USD ($)security
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months Fair Value	$ 2,851
Less Than 12 Months Unrealized Losses	$ 19
Number of Securities | security	1
Total Fair Value	$ 2,851
Total Unrealized Losses	$ 19

Investment Securities - Held-to

Investment Securities - Held-to-Maturity Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands	Dec. 31, 2017USD ($)security	Dec. 31, 2016USD ($)security
Investment Securities
Less Than 12 Months Fair Value	$ 41,163	$ 179,741
Less Than 12 Months Unrealized Losses	299	5,599
12 Months or Longer Fair Value	140,200	23,402
12 Months or Longer Unrealized Losses	$ 4,304	$ 1,425
Total Number of Securities | security	49	50
Total Fair Value	$ 181,363	$ 203,143
Total Unrealized Losses	$ 4,603	$ 7,024

Investment Securities - Trust P

Investment Securities - Trust Preferred Securities (Details)	72 Months Ended	120 Months Ended
	Dec. 31, 2017USD ($)Transactionsecurity	Dec. 31, 2017USD ($)itemsecurity	Dec. 31, 2016USD ($)
Investment Securities
Amortized cost	$ 404,792,000	$ 404,792,000	$ 407,656,000
Trust preferred securities
Investment Securities
Amortized cost	$ 427,000	$ 427,000	$ 1,158,000
Number of market transactions of the security | Transaction	6
Period of minimal activity in trust preferred securities tranche determining the market to be inactive	72 months
Number of new security pools | item		0
Accumulated other comprehensive loss	$ 0	$ 0
Trust preferred securities | PreTSL XXIII
Investment Securities
Number of securities owned | security	1	1
Amortized cost	$ 427,000	$ 427,000
Remaining cost basis	$ 427,000	$ 427,000

Investment Securities - Cumulat

Investment Securities - Cumulative Roll Forward of Credit Losses Recognized in Earnings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold
Balance at the beginning of the period	$ 2,403	$ 2,403
Credit losses on debt securities which were sold
Balance at the end of the period	$ 2,403	$ 2,403

Federal Home Loan Bank Stock (D

Federal Home Loan Bank Stock (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Investment in stock
Capital stock of the FHLB owned	$ 6,541	$ 4,945
Territorial Savings Bank
Investment in stock
Capital stock of the FHLB owned	$ 6,500	$ 4,900

Federal Reserve Bank Stock (Det

Federal Reserve Bank Stock (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Investment in stock
Capital stock of the Federal Reserve Bank owned	$ 3,103	$ 3,095
Territorial Savings Bank
Investment in stock
Requirement to hold shares of capital stock of the Federal Reserve Bank as a percentage of capital and surplus (as a percent)	6.00%
Capital stock of the Federal Reserve Bank owned	$ 3,100	$ 3,100

Loans Receivable and Allowanc79

Loans Receivable and Allowance for Loan Losses - Components (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Real estate loans:
Total real estate loans	$ 1,490,093	$ 1,337,066
Other loans:
Total other loans	4,614	4,564
Less: Net unearned fees and discounts	(3,188)	(3,191)
Less: Allowance for loan losses	(2,548)	(2,452)	$ (2,166)	$ (1,691)
Total unearned fees, discounts and allowance for loan losses	(5,736)	(5,643)
Loans receivable, net	1,488,971	1,335,987
One- to four-family residential
Real estate loans:
Total real estate loans	1,444,625	1,289,364
Multi-family residential
Real estate loans:
Total real estate loans	10,799	9,551
Construction, Commercial and Other Mortgage Loans
Real estate loans:
Total real estate loans	21,787	23,346
Other loans:
Less: Allowance for loan losses	(539)	(519)	(517)	(977)
Home Equity Loans and Lines of Credit
Real estate loans:
Total real estate loans	12,882	14,805
Other loans:
Less: Allowance for loan losses	(1)	(2)	$ (3)	$ (5)
Loans on Deposit Accounts
Other loans:
Total other loans	274	204
Consumer and Other
Other loans:
Total other loans	$ 4,340	$ 4,360

Loans Receivable and Allowanc80

Loans Receivable and Allowance for Loan Losses - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended			24 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2015
Activity in allowance for loan losses
Balance, beginning of year				$ 2,452				$ 2,166	$ 2,452	$ 2,166	$ 1,691
Provision (reversal of provision) for loan losses	$ 50	$ 54	$ (123)	71	$ 91	$ 107	$ 84	28	52	310	455
Allowance for loan losses on loans receivable after provision (reversal of allowance)									2,504	2,476	2,146
Charge-offs									(37)	(61)	(53)
Recoveries									81	37	73
Net recoveries (charge-offs)									44	(24)	20
Balance, end of year	2,548				2,452				2,548	$ 2,452	2,166	$ 2,166
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 year				1,594				1,380	1,594	$ 1,380	413
Provision (reversal of provision) for loan losses									63	223	964
Allowance for loan losses on loans receivable after provision (reversal of allowance)									1,657	1,603	1,377
Charge-offs									(11)	(33)
Recoveries									75	24	3
Net recoveries (charge-offs)									64	(9)	3
Balance, end of year	1,721				1,594				1,721	1,594	1,380	$ 1,380
Construction, Commercial and Other Mortgage Loans
Activity in allowance for loan losses
Balance, beginning of year				519				517	519	517	977
Provision (reversal of provision) for loan losses									20	1	(471)
Allowance for loan losses on loans receivable after provision (reversal of allowance)									539	518	506
Recoveries										1	11
Net recoveries (charge-offs)										1	11
Balance, end of year	539				519				539	519	517	517
Home Equity Loans and Lines of Credit
Activity in allowance for loan losses
Balance, beginning of year				2				3	2	3	5
Provision (reversal of provision) for loan losses									(1)	(1)	(49)
Allowance for loan losses on loans receivable after provision (reversal of allowance)									1	2	(44)
Recoveries											47
Net recoveries (charge-offs)											47
Balance, end of year	1				2				1	2	3	3
Consumer and other loans
Activity in allowance for loan losses
Balance, beginning of year				115				72	115	72	263
Provision (reversal of provision) for loan losses									(40)	59	(150)
Allowance for loan losses on loans receivable after provision (reversal of allowance)									75	131	113
Charge-offs									(26)	(28)	(53)
Recoveries									6	12	12
Net recoveries (charge-offs)									(20)	(16)	(41)
Balance, end of year	55				115				55	115	72	72
Unallocated
Activity in allowance for loan losses
Balance, beginning of year				$ 222				$ 194	222	194	33
Provision (reversal of provision) for loan losses									10	28	161
Allowance for loan losses on loans receivable after provision (reversal of allowance)									232	222	194
Balance, end of year	$ 232				$ 222				$ 232	$ 222	$ 194	$ 194

Loans Receivable and Allowanc81

Loans Receivable and Allowance for Loan Losses - Balance in Allowance for Loan Losses and Recorded Investment (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for loan losses:
Collectively evaluated for impairment	$ 2,548	$ 2,452
Total ending allowance balance	2,548	2,452	$ 2,166	$ 1,691
Loans:
Individually evaluated for impairment	5,142	5,744
Collectively evaluated for impairment	1,486,377	1,332,695
Total ending loan balance	1,491,519	1,338,439
Residential Mortgage
Allowance for loan losses:
Collectively evaluated for impairment	1,721	1,594
Total ending allowance balance	1,721	1,594	1,380	413
Loans:
Individually evaluated for impairment	4,977	5,587
Collectively evaluated for impairment	1,447,326	1,290,209
Total ending loan balance	1,452,303	1,295,796
Construction, Commercial and Other Mortgage Loans
Allowance for loan losses:
Collectively evaluated for impairment	539	519
Total ending allowance balance	539	519	517	977
Loans:
Collectively evaluated for impairment	21,701	23,256
Total ending loan balance	21,701	23,256
Home Equity Loans and Lines of Credit
Allowance for loan losses:
Collectively evaluated for impairment	1	2
Total ending allowance balance	1	2	3	5
Loans:
Individually evaluated for impairment	165	156
Collectively evaluated for impairment	12,722	14,656
Total ending loan balance	12,887	14,812
Consumer and other loans
Allowance for loan losses:
Collectively evaluated for impairment	55	115
Total ending allowance balance	55	115	72	263
Loans:
Individually evaluated for impairment		1
Collectively evaluated for impairment	4,628	4,574
Total ending loan balance	4,628	4,575
Unallocated
Allowance for loan losses:
Collectively evaluated for impairment	232	222
Total ending allowance balance	$ 232	$ 222	$ 194	$ 33

Loans Receivable and Allowanc82

Loans Receivable and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Impaired loans
Average Recorded Investment	$ 5,287	$ 5,905	$ 6,782
Interest Income Recognized	58	72	71
Loans individually evaluated for impairment with a related allowance for loan loss	0	0	0
One- to four-family residential
Impaired loans
Average Recorded Investment	5,112	5,743	6,642
Interest Income Recognized	58	72	71
Home Equity Loans and Lines of Credit
Impaired loans
Average Recorded Investment	175	161	131
Consumer and other loans
Impaired loans
Average Recorded Investment		1	$ 9
Individually Evaluated for Impairment
Impaired loans
Recorded Investment	5,142	5,744
Unpaid Principal Balance	6,125	6,674
Individually Evaluated for Impairment | One- to four-family residential
Impaired loans
Recorded Investment	4,977	5,587
Unpaid Principal Balance	5,897	6,469
Individually Evaluated for Impairment | Home Equity Loans and Lines of Credit
Impaired loans
Recorded Investment	165	156
Unpaid Principal Balance	$ 228	204
Individually Evaluated for Impairment | Consumer and other loans
Impaired loans
Recorded Investment		1
Unpaid Principal Balance		$ 1

Loans Receivable and Allowanc83

Loans Receivable and Allowance for Loan Losses - Aging of Loans and Accrual Status (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 2,841	$ 1,780
Loans Not Past Due	1,488,678	1,336,659
Total ending loan balance	1,491,519	1,338,439
Nonaccrual Loans	4,227	4,559
One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	2,796	1,676
Loans Not Past Due	1,438,725	1,284,590
Total ending loan balance	1,441,521	1,286,266
Nonaccrual Loans	4,062	4,402
Multi-family residential
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	10,782	9,530
Total ending loan balance	10,782	9,530
Construction, Commercial and Other Mortgage Loans
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	21,701	23,256
Total ending loan balance	21,701	23,256
Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	41	100
Loans Not Past Due	12,846	14,712
Total ending loan balance	12,887	14,812
Nonaccrual Loans	165	156
Loans on Deposit Accounts
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	274	204
Total ending loan balance	274	204
Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4	4
Loans Not Past Due	4,350	4,367
Total ending loan balance	4,354	4,371
Nonaccrual Loans		1
30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4	204
30 - 59 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due		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	4	3
60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,207	168
60 - 89 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,207	133
60 - 89 Days Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due		35
90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,630	1,408
90 Days or Greater Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,589	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 Allowanc84

Loans Receivable and Allowance for Loan Losses - Delinquent and Nonaccrual Loans (Details)	12 Months Ended
	Dec. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)loan	Dec. 31, 2015USD ($)
Accounts, Notes, Loans and Financing Receivable
Nonaccrual Loans	$ 4,227,000	$ 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	17	19
Nonaccrual Loans	$ 4,200,000	$ 4,600,000
Interest collected on nonaccrual loans recorded as a reduction of principal	179,000	195,000	$ 233,000
Non accrual loans, additional interest income that would have been recognized had the loans been accruing interest	$ 240,000	$ 268,000	$ 312,000

Loans Receivable and Allowanc85

Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Details)	12 Months Ended
	Dec. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)loan
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 2,081,000	$ 2,921,000
Real estate owned	$ 0	$ 0
Accruing interest
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	4	5
Loans modified by troubled debt restructurings considered impaired	$ 915,000	$ 1,185,000
Non Accrual Loans
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	6	8
Loans modified by troubled debt restructurings considered impaired	$ 1,166,000	$ 1,736,000
Non Accrual Loans | More than 149 days past due
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	1	1
Loans modified by troubled debt restructurings considered impaired	$ 149,000	$ 149,000
Loans modified in troubled debt restructuring
Troubled debt restructurings
Number of Loans | loan	0	0
Number of loans subsequently defaulted | loan	0
Additional disclosures
Commitments to lend additional funds to borrowers	$ 0
One- to four-family residential
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 1,989,000	$ 2,814,000
Mortgage loans in process of foreclosure, number of contracts | loan	3	3
Mortgage loans in process of foreclosure, total value	$ 650,000	$ 660,000
One- to four-family residential | Accruing interest
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	4	5
Loans modified by troubled debt restructurings considered impaired	$ 915,000	$ 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	7
Loans modified by troubled debt restructurings considered impaired	$ 1,074,000	$ 1,629,000
Home Equity Loans and Lines of Credit
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 92,000	$ 107,000
Mortgage loans in process of foreclosure, number of contracts | loan	1	1
Mortgage loans in process of foreclosure, total value	$ 41,000	$ 42,000
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
Loans modified by troubled debt restructurings considered impaired	$ 92,000	$ 107,000

Loans Receivable and Allowanc86

Loans Receivable and Allowance for Loan Losses - Collateral, Sales, Serviced for Others, Directors and Executive Officers (Details)	12 Months Ended
	Dec. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)loan	Dec. 31, 2015USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Loans serviced for others	$ 35,500,000	$ 41,500,000	$ 51,800,000
Loans serviced for others, securitization for which the company continues to hold the related mortgage-backed securities	1,500,000	2,200,000	2,800,000
Loans serviced for others, amount of contractually specified servicing fees earned	105,000	128,000	153,000
Loans to related parties
Loans to directors and executive officers	$ 890,000	1,400,000
Mortgage Loans on Real Estate | Maximum
Accounts, Notes, Loans and Financing Receivable
Loan to value ratio (as a percent)	80.00%
Residential Mortgage Loans Held For Sale
Accounts, Notes, Loans and Financing Receivable
Residential mortgage loans sold, loan amount	$ 25,000,000	48,900,000	56,200,000
Residential mortgage loans sold, recognized gains	$ 199,000	$ 406,000	$ 503,000
Number of loans | loan	1	5	5
Residential mortgage loans held for sale	$ 403,000	$ 1,600,000

Accrued Interest Receivable (De

Accrued Interest Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Components of accrued interest receivable
Accrued interest receivable	$ 5,142	$ 4,732
Investment securities
Components of accrued interest receivable
Accrued interest receivable	1,045	1,064
Loans receivable
Components of accrued interest receivable
Accrued interest receivable	4,090	3,658
Interest-bearing deposits
Components of accrued interest receivable
Accrued interest receivable	$ 7	$ 10

Mortgage Servicing Assets (Deta

Mortgage Servicing Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Gross carrying values, accumulated amortization, and net carrying values of mortgage servicing assets
Gain on sale of loans	$ 3,000	$ 0
Mortgage servicing assets
Balance at beginning of year	307,000	426,000
Additions	3,000
Impairments		(49,000)
Amortization	(47,000)	(70,000)
Balance at end of year	263,000	307,000
Gross carrying value	1,310,000	1,307,000
Accumulated amortization	(1,047,000)	(1,000,000)
Net carrying value	263,000	307,000
Estimated amortization expense
Net carrying value	263,000	307,000
Fair values and key assumptions used in determining the fair values of mortgage servicing assets
Fair value, beginning of year	368,000	441,000
Fair value, end of year	311,000	368,000
Annual cost to service (in dollars per loan)	$ 70	$ 65
Term of loan for which PSA prepayment model assumes increasing prepayment rates	30 months
Weighted Average
Fair values and key assumptions used in determining the fair values of mortgage servicing assets
Discount rate (as a percent)	10.50%	10.50%
Prepayment speed assumption (PSA prepayment speed)	173.30%	159.20%
Mortgage Servicing Assets
Mortgage servicing assets
Net carrying value	$ 263,000
Estimated amortization expense
2,018	48,000
2,019	32,000
2,020	26,000
2,021	22,000
2,022	20,000
Thereafter	115,000
Net carrying value	$ 263,000

Interest Rate Lock and Forwar89

Interest Rate Lock and Forward Loan Sale Commitments - Notional Amounts (Details) $ in Millions	Dec. 31, 2017USD ($)
Interest rate locks
Interest rate lock and forward loan sale commitments
Amount of derivatives	$ 2.5
Forward commitment | Loans receivable | Sale
Interest rate lock and forward loan sale commitments
Amount of derivatives	$ 2.9

Interest Rate Lock and Forwar90

Interest Rate Lock and Forward Loan Sale Commitments - Location of Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets and liabilities related to derivatives
Fair value of asset derivatives	$ 8	$ 104
Fair value of liability derivatives	8	104
Interest rate contracts | Prepaid expenses and other assets
Assets and liabilities related to derivatives
Fair value of asset derivatives	8	104
Interest rate contracts | Accounts payable and accrued expenses
Assets and liabilities related to derivatives
Fair value of liability derivatives	$ 8	$ 104

Interest Rate Lock and Forwar91

Interest Rate Lock and Forward Loan Sale Commitments - Location of Gains and Losses (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Interest rate contracts | Gain on sale of loans
Gains and losses related to derivatives
Gain (loss) related to derivatives	$ 6

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Premises and equipment
Gross	$ 21,643	$ 20,011
Less accumulated depreciation and amortization	(15,962)	(16,066)
Net	5,681	3,945
Construction in progress	40	382
Total	5,721	4,327
Depreciation expense	1,100	1,100	$ 1,300
Land
Premises and equipment
Gross	585	585
Buildings and improvements
Premises and equipment
Gross	1,301	1,045
Leasehold improvements
Premises and equipment
Gross	13,915	13,005
Furniture, fixtures and equipment
Premises and equipment
Gross	5,727	5,261
Automobiles
Premises and equipment
Gross	$ 115	$ 115

Deposits (Details)

Deposits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deposit amount
Non-interest bearing	$ 49,725,000	$ 47,703,000
Savings accounts	1,040,248,000	1,022,159,000
Certificates of deposit	312,225,000	236,043,000
Money market	5,578,000	3,406,000
Checking and Super NOW	189,519,000	183,889,000
Total	$ 1,597,295,000	$ 1,493,200,000
Interest rate
Savings accounts (as a percent)	0.46%	0.41%
Certificates of deposit (as a percent)	1.34%	0.96%
Money market (as a percent)	0.43%	0.44%
Checking and Super NOW (as a percent)	0.02%	0.02%
Total (as a percent)	0.56%	0.43%
Maturity of certificate of deposit accounts
2,018	$ 165,706,000
2,019	70,272,000
2,020	31,423,000
2,021	20,458,000
2,022	24,366,000
Total	312,225,000	$ 236,043,000
Deposit with balances greater than or equal to $250,000
Maximum amount of account owner deposit in bank insured by FDIC	250,000
Interest expense by type of deposit
Savings	4,445,000	4,162,000	$ 3,670,000
Certificates of deposit and money market	3,182,000	1,734,000	1,118,000
Checking and Super NOW	39,000	37,000	33,000
Total	7,666,000	5,933,000	$ 4,821,000
Overdrawn deposit accounts reclassified as loans	22,000	22,000
Domestic
Deposit with balances greater than or equal to $250,000
Total	$ 192,800,000	$ 141,600,000

Advances from the Federal Hom94

Advances from the Federal Home Loan Bank (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Federal Home Loan Bank, Advances, Rolling Maturity
Due within one year	$ 46,200
Due over 1 year to 2 years	31,000	$ 37,000
Due over 2 years to 3 years	15,000	22,000
Due over 3 years to 4 years	15,000	10,000
Total	$ 107,200	$ 69,000
Weighted Average Rate
Due within one year (as a percent)	1.39%
Due over 1 year to 2 years (as a percent)	1.79%	1.33%
Due over 2 years to 3 years (as a percent)	1.85%	1.66%
Due over 3 years to 4 years (as a percent)	2.32%	1.66%
Total (as a percent)	1.70%	1.49%
FHLB Des Moines
Federal Home Loan Bank advances
Available additional unused FHLB advances	$ 579,400	$ 577,900
Territorial Savings Bank | FHLB Des Moines
Federal Home Loan Bank advances
Percentage of total assets used to determine maximum line of credit	35.00%

Securities Sold Under Agreeme95

Securities Sold Under Agreements to Repurchase - Summary of Repurchase Liability by Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Securities sold under agreements to repurchase
Repurchase Liability	$ 30,000	$ 55,000
Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.66%	1.57%
1 year or less
Securities sold under agreements to repurchase
Repurchase Liability		$ 25,000
1 year or less | Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)		1.46%
Over 1 year to 2 years
Securities sold under agreements to repurchase
Repurchase Liability	$ 25,000
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	$ 5,000	$ 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 Agreeme96

Securities Sold Under Agreements to Repurchase - Summary of Securities Pledged (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Securities sold under agreements to repurchase
Repurchase liability maximum	90.00%
Maturing Over 90 days
Securities sold under agreements to repurchase
Carrying Value of Securities	$ 39,834
Fair Value of Securities	39,986
Repurchase Liability	30,000
Amount at Risk	$ 9,986
Weighted Average Months to Maturity	17 months

Offsetting of Financial Liabi97

Offsetting of Financial Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Securities sold under agreements to repurchase
Gross Amount of Recognized Liabilities	$ 30,000	$ 55,000
Net Amount of Liabilities Presented in the Balance Sheet	30,000	55,000
Gross amount not offset in the balance sheet
Financial Instruments	$ 30,000	$ 55,000

Income Taxes - Provision and Re

Income Taxes - Provision and Reconciliation to Federal Statutory Corporate Tax Rate (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current
Federal										$ 6,219	$ 7,487	$ 10,176
State										1,447	1,810	1,833
Total current										7,666	9,297	12,009
Deferred
Federal										3,273	1,339	(2,147)
State										163	151	(76)
Total deferred										3,436	1,490	(2,223)
Total income tax expense		$ 3,288	$ 2,580	$ 2,651	$ 2,583	$ 2,859	$ 2,792	$ 2,624	$ 2,512	$ 11,102	$ 10,787	$ 9,786
Federal statutory corporate tax rate (as a percent)	21.00%									35.00%	35.00%	35.00%
Reconciliation of tax provision
Income tax expense at statutory rate										$ 9,123	$ 9,497	$ 8,587
Income tax effect of:
Other tax-exempt income										(317)	(338)	(359)
Share-based compensation										2	68	87
State income taxes, net of federal income tax benefits										1,104	1,057	1,104
Tax benefit from the exercise of stock options										(1,046)
Write-down of deferred income taxes										2,054
Other										182	503	367
Total income tax expense		$ 3,288	$ 2,580	$ 2,651	$ 2,583	$ 2,859	$ 2,792	$ 2,624	$ 2,512	$ 11,102	$ 10,787	$ 9,786
Effective income tax rate (as a percent)										42.59%	39.75%	39.89%

Income Taxes - Components of In

Income Taxes - Components of Income Taxes Payable (Receivable) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Components of income taxes payable (receivable)
Current taxes (receivable)	$ (1,571)	$ (122)
Total current taxes payable (receivable)	(88)	1,494
Deferred taxes receivable	(4,609)	(7,905)
State
Components of income taxes payable (receivable)
Current taxes payable	1,483	1,616
Deferred taxes receivable	(1,431)	(1,555)
Federal
Components of income taxes payable (receivable)
Current taxes (receivable)	(1,571)	(122)
Deferred taxes receivable	$ (3,178)	$ (6,350)

Income Taxes - Deferred Tax Com

Income Taxes - Deferred Tax Components (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Premises and equipment		$ 966	$ 1,737
Hawaii franchise tax		440	560
Unfunded pension liability		1,229	1,550
Allowance for loan losses		678	969
Impaired asset write-down		724	1,020
Employee benefit plans		2,580	3,785
Equity incentive plan		420	1,330
Unrealized losses on securities available-for-sale		17	21
Deferred compensation		453	744
Other		137	215
Total		7,644	11,931
Deferred tax liabilities:
Net deferred loan fees		2,676	3,566
FHLB stock dividends		126	196
Prepaid expense		163	143
Premium on loans sold		70	121
Total		3,035	4,026
Net deferred tax assets		$ 4,609	$ 7,905
Federal statutory corporate tax rate (as a percent)	21.00%	35.00%	35.00%	35.00%
Write-down of deferred income taxes		$ 2,054
Valuation allowance for deferred tax assets		$ 0	$ 0

Employee Benefit Plans - Pensio

Employee Benefit Plans - Pension Plan Participants (Details) - Pension Plan	Dec. 31, 2008	Dec. 31, 2017
Employee benefit plans
Required service period to participate in the plan		1 year
Vesting percentage for employees already enrolled with at least five years of service as of effective date of plan change	100.00%
Minimum service period for employees already enrolled to be 100% vested as of effective date of plan change	5 years
Vesting period if minimum service period for employees already enrolled was not met as of effective date of plan change	5 years

Employee Benefit Plans - Status

Employee Benefit Plans - Status of Pension Plan and SERP (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension Plan
Employee benefit plans
Accumulated benefit obligation at end of year	$ 19,314	$ 17,496
Change in projected benefit obligation:
Benefit obligation at beginning of year	17,496	17,321
Service cost	193	194	$ 120
Interest cost	763	752	722
Actuarial loss (gain)	1,670	(90)
Benefits paid	(808)	(681)
Benefit obligation at end of year	19,314	17,496	17,321
Change in plan assets:
Fair value of plan assets at beginning of year	14,804	13,140
Actual return on plan assets	1,931	345
Employer contributions		2,000
Benefits paid	(808)	(681)
Fair value of plan assets at end of year	15,927	14,804	13,140
Funded status at end of year	(3,387)	(2,692)
Amounts recognized in accumulated other comprehensive loss:
Net actuarial loss	9,096	8,582
Prior service cost	149	154
Accumulated other comprehensive loss, before tax	9,245	8,736	8,375
Pension Plan | Accounts payable and accrued expenses
Amounts recognized in the consolidated balance sheets:
Accounts payable and accrued expenses - liability	(3,387)	(2,692)
Supplemental Employee Retirement Plan (SERP)
Employee benefit plans
Accumulated benefit obligation at end of year	9,242	9,044
Change in projected benefit obligation:
Benefit obligation at beginning of year	9,044	8,891
Service cost	75	38	29
Interest cost	140	132	125
Benefits paid	(17)	(17)
Benefit obligation at end of year	9,242	9,044	$ 8,891
Change in plan assets:
Employer contributions	17	17
Benefits paid	(17)	(17)
Funded status at end of year	(9,242)	(9,044)
Supplemental Employee Retirement Plan (SERP) | Accounts payable and accrued expenses
Amounts recognized in the consolidated balance sheets:
Accounts payable and accrued expenses - liability	$ (9,242)	$ (9,044)

Employee Benefit Plans - Change

Employee Benefit Plans - Changes Recognized in Accumulated Other Comprehensive Loss for Pension Plan (Details) - Pension Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Amounts recognized in accumulated other comprehensive loss:
Accumulated other comprehensive loss at beginning of year, before tax	$ 8,736	$ 8,375
Actuarial net loss arising during the period	764	580
Amortizations (recognized in net periodic benefit cost):
Actuarial loss	(250)	(214)
Prior service cost	(5)	(5)
Total recognized in other comprehensive loss	509	361
Accumulated other comprehensive loss at end of year, before tax	$ 9,245	$ 8,736

Employee Benefit Plans - Assump

Employee Benefit Plans - Assumptions Used to Determine Benefit Obligations and Pension Plan Investment Strategy (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Pension Plan
Weighted average assumptions used to determine the year-end benefit obligations
Discount rate (as a percent)	3.70%	4.30%
Pension Plan | Domestic equity securities
Normal target allocation
Normal target allocation (as a percent)	55.00%
Pension Plan | International equity securities
Normal target allocation
Normal target allocation (as a percent)	10.00%
Pension Plan | Bonds
Normal target allocation
Normal target allocation (as a percent)	35.00%
Supplemental Employee Retirement Plan (SERP)
Weighted average assumptions used to determine the year-end benefit obligations
Discount rate (as a percent)	5.04%	5.05%
Rate of compensation increase (as a percent)	5.00%	5.00%

Employee Benefit Plans - Pen105

Employee Benefit Plans - Pension Plan Assets Measured at Fair Value (Details) - Pension Plan - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets measured at fair values
Fair value of assets	$ 15,927	$ 14,804	$ 13,140
Cash
Assets measured at fair values
Fair value of assets	846	1,839
Equity
Assets measured at fair values
Fair value of assets	11,814	9,794
Mutual Funds
Assets measured at fair values
Fair value of assets	3,267	3,171
Level 1
Assets measured at fair values
Fair value of assets	15,927	14,804
Level 1 | Cash
Assets measured at fair values
Fair value of assets	846	1,839
Level 1 | Equity
Assets measured at fair values
Fair value of assets	11,814	9,794
Level 1 | Mutual Funds
Assets measured at fair values
Fair value of assets	$ 3,267	$ 3,171

Employee Benefit Plans - Future

Employee Benefit Plans - Future Benefit Payments and Net Periodic Benefit Cost Assumptions and Components (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension Plan
Estimated future benefit payments
2,018	$ 954,000
2,019	1,007,000
2,020	1,039,000
2,021	1,092,000
2,022	1,133,000
2023 - 2027	5,794,000
Total	$ 11,019,000
Assumptions used to determine the net periodic benefit cost:
Discount rate (as a percent)	4.30%	4.40%	4.10%
Expected return on plan assets (as a percent)	7.25%	7.50%	7.50%
Net periodic benefit cost for the year:
Service cost	$ 193,000	$ 194,000	$ 120,000
Interest cost	763,000	752,000	722,000
Expected return on plan assets	(1,026,000)	(1,015,000)	(976,000)
Amortization of prior service cost	5,000	5,000
Recognized actuarial loss	250,000	214,000	215,000
Net periodic benefit cost	185,000	$ 150,000	$ 81,000
Estimated prior service cost and net actuarial loss that will be amortized from AOCI into net periodic pension benefit cost
Prior service cost	5,000
Net actuarial loss	249,000
Supplemental Employee Retirement Plan (SERP)
Estimated future benefit payments
2,018	17,000
2,019	6,488,000
2,020	150,000
2,021	2,320,000
2,022	144,000
2023 - 2027	665,000
Total	$ 9,784,000
Assumptions used to determine the net periodic benefit cost:
Discount rate (as a percent)	5.03%	5.05%	5.06%
Rate of compensation increase (as a percent)	5.00%	5.00%	5.00%
Net periodic benefit cost for the year:
Service cost	$ 75,000	$ 38,000	$ 29,000
Interest cost	140,000	132,000	125,000
Net periodic benefit cost	215,000	$ 170,000	$ 154,000
Expected contribution
2,018	$ 17,000

Employee Benefit Plans - Define

Employee Benefit Plans - Defined Contribution and Profit Sharing Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Contribution Plan Disclosure [Line Items]
Required service period to participate in plans	1 year
401(k) plan
Defined Contribution Plan Disclosure [Line Items]
Company matching contribution of employees' contributions (as a percent)	5.00%	5.00%	5.00%
Employer's matching contribution (in dollars)	$ 57,000	$ 57,000	$ 56,000
Profit sharing plan
Defined Contribution Plan Disclosure [Line Items]
Employer's matching contribution (in dollars)	$ 0	$ 0	$ 0

Employee Stock Ownership Plan -

Employee Stock Ownership Plan - Loan, Expense and Shares (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 10, 2009	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Stock Ownership Plan
ESOP expense		$ 1,529	$ 1,353	$ 1,210
Allocated shares		397,912	372,997
Unearned shares		538,261	587,193
Total ESOP shares		936,173	960,190
Fair value of unearned shares, in thousands		$ 16,616	$ 19,283
ESOP
Employee Stock Ownership Plan
Amount borrowed from employer	$ 9,800
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		$ 1,800	$ 1,100
ESOP | Prime rate
Employee Stock Ownership Plan
Variable interest rate		prime rate, as published in The Wall Street Journal

Employee Stock Ownership Pla109

Employee Stock Ownership Plan - Nonqualified ESOP Restoration Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
ESOP restoration | Certain executives
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits
Accrued benefits	$ 341,000	$ 454,000

Share-Based Compensation - Plan

Share-Based Compensation - Plan Provisions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-Based Compensation
Compensation expense	$ 153	$ 1,789	$ 2,670
Income tax benefit	$ 42	$ 718	$ 1,072
Number of shares authorized	1,862,637
2010 Equity Incentive Plan | Vesting period one
Share-Based Compensation
Vesting period	3 years
2010 Equity Incentive Plan | Vesting period two
Share-Based Compensation
Vesting period	5 years
2010 Equity Incentive Plan | Vesting period three
Share-Based Compensation
Vesting period	6 years

Share-Based Compensation - Stoc

Share-Based Compensation - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Common Stock
Stock option activity
Exercised (in shares)	294,887	125,870	1,000
Stock option activity
Shares of common stock issued in exchange for stock options and common shares	135,210
Common shares exchanged	159,677
Stock Options
Stock option activity
Balance at beginning of period (in shares)	706,430	832,300	832,954
Granted (in shares)			3,600
Exercised (in shares)	294,887	125,870	1,000
Forfeited (in shares)			3,254
Balance at end of period (in shares)	411,543	706,430	832,300	832,954
Options vested and exercisable (in shares)	410,343
Weighted Average Exercise Price
Balance at beginning of period (in dollars per share)	$ 17.43	$ 17.42	$ 17.38
Granted (in dollars per share)			26.23
Exercised (in dollars per share)	17.36	17.36	17.36
Forfeited (in dollars per share)			17.36
Balance at end of period (in dollars per share)	17.48	$ 17.43	$ 17.42	$ 17.38
Options vested and exercisable (in dollars per share)	$ 17.46
Remaining Contractual Life
Options outstanding	2 years 8 months 23 days	3 years 8 months 12 days	4 years 8 months 12 days	5 years 8 months 5 days
Granted			9 years 8 months 1 day
Options vested and exercisable	2 years 8 months 16 days
Aggregate Intrinsic Value
Beginning of period	$ 10,884,000	$ 8,588,000	$ 3,471,000
Exercised	4,345,000	1,378,000	8,000
End of period	5,509,000	10,884,000	8,588,000	$ 3,471,000
Options vested and exercisable	5,503,000
Stock option activity
Intrinsic value of stock options exercised	4,345,000	1,378,000	8,000
Proceeds received from stock options exercised	5,119,000	2,186,000	17,000
Tax benefits realized from stock options exercised	1,601,000	368,000	3,000
Total fair value of stock options that vested	37,000	$ 4,495,000	$ 3,854,000
Unrecognized compensation costs	$ 3,000
Vesting period	3 years

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Awards (Details) - USD ($)	May 25, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Restricted Stock
Restricted Stock Awards
Non-vested at beginning of period (in shares)		2,400	114,542	226,733
Granted (in shares)		9,604		3,600
Vested (in shares)		1,200	112,142	113,332
Forfeited (in shares)				2,459
Non-vested at end of period (in shares)		10,804	2,400	114,542
Weighted Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 26.23	$ 17.67	$ 17.39
Granted (in dollars per share)		29.53		26.33
Vested (in dollars per share)		26.23	17.49	17.39
Forfeited (in dollars per share)				17.36
Non-vested at end of period (in dollars per share)		$ 29.16	26.23	$ 17.67
Unrecognized compensation
Vesting period		3 years
Unrecognized compensation costs		$ 246,000
Restricted Stock Units Based on a Performance Condition
Restricted Stock Awards
Granted (in shares)		11,525
Non-vested at end of period (in shares)		11,525
Weighted Average Grant Date Fair Value
Granted (in dollars per share)		$ 29.53
Non-vested at end of period (in dollars per share)		$ 29.53
Unrecognized compensation
Vesting period		3 years
Unrecognized compensation costs		$ 194,000
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
Granted (in shares)		2,881
Non-vested at end of period (in shares)		2,881
Weighted Average Grant Date Fair Value
Granted (in dollars per share)		$ 24.44
Non-vested at end of period (in dollars per share)		$ 24.44
Unrecognized compensation
Vesting period		3 years
Unrecognized compensation costs		$ 37,000
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								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share
Net income	$ 2,167	$ 4,173	$ 4,301	$ 4,321	$ 4,362	$ 4,164	$ 4,037	$ 3,784	$ 14,962	$ 16,347	$ 14,748
Income allotted to participating securities									(27)	(126)	(297)
Net income available to common shareholders									$ 14,935	$ 16,221	$ 14,451
Weighted-average number of shares used in:
Basic earnings per share (in shares)									9,273,783	9,093,385	9,073,015
Dilutive common stock equivalents:
Stock options and restricted stock units (in shares)									258,941	218,590	190,252
Diluted earnings per share (in shares)									9,532,724	9,311,975	9,263,267
Net income per common share, basic (in dollars per share)	$ 0.23	$ 0.45	$ 0.46	$ 0.47	$ 0.48	$ 0.45	$ 0.44	$ 0.41	$ 1.61	$ 1.78	$ 1.59
Net income per common share, diluted (in dollars per share)	$ 0.23	$ 0.44	$ 0.45	$ 0.46	$ 0.46	$ 0.44	$ 0.43	$ 0.40	$ 1.57	$ 1.74	$ 1.56

Other Comprehensive Loss - Chan

Other Comprehensive Loss - Changes in Components of Accumulated Other Comprehensive Income and Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of year	$ (229,786)	$ (219,641)	$ (216,378)
Net current period other comprehensive loss (income)	378	80	(152)
Balances at end of year	(234,854)	(229,786)	(219,641)
Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of year	5,316	5,236	5,388
Other comprehensive loss (income), net of taxes	378	80	(152)
Net current period other comprehensive loss (income)	378	80	(152)
Balances at end of year	5,694	5,316	5,236
Unfunded Pension Liability
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of year	5,284	5,044	5,032
Other comprehensive loss (income), net of taxes	373	240	12
Net current period other comprehensive loss (income)	373	240	12
Balances at end of year	5,657	5,284	5,044
Noncredit Related Loss | Trust preferred securities
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of year		147	284
Other comprehensive loss (income), net of taxes		(147)	(137)
Net current period other comprehensive loss (income)		(147)	(137)
Balances at end of year			147
Unrealized Loss on Securities
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of year	32	45	72
Other comprehensive loss (income), net of taxes	5	(13)	(27)
Net current period other comprehensive loss (income)	5	(13)	(27)
Balances at end of year	$ 37	$ 32	$ 45

Other Comprehensive Loss - Tax

Other Comprehensive Loss - Tax Effect on Each Component (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Tax effect on each component of other comprehensive loss
Net current period other comprehensive loss (income)	$ 378	$ 80	$ (152)
Accumulated Other Comprehensive Income (Loss)
Tax effect on each component of other comprehensive loss
Pretax amount	518	97	(251)
Tax	(140)	(17)	99
Net current period other comprehensive loss (income)	378	80	(152)
Unfunded Pension Liability
Tax effect on each component of other comprehensive loss
Pretax amount	509	361	20
Tax	(136)	(121)	(8)
Net current period other comprehensive loss (income)	373	240	12
Noncredit Related Loss | Trust preferred securities
Tax effect on each component of other comprehensive loss
Pretax amount		(242)	(226)
Tax		95	89
Net current period other comprehensive loss (income)		(147)	(137)
Unrealized Loss on Securities
Tax effect on each component of other comprehensive loss
Pretax amount	9	(22)	(45)
Tax	(4)	9	18
Net current period other comprehensive loss (income)	$ 5	$ (13)	$ (27)

Commitments - Loans (Details)

Commitments - Loans (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Commitments to originate loans
Loan Commitments
Commitment amount	$ 15.5	$ 50.5
Commitments to originate loans | Minimum
Loan Commitments
Interest rate (as a percent)	2.875%	2.50%
Commitments to originate loans | Maximum
Loan Commitments
Interest rate (as a percent)	4.125%	4.625%
Unused lines of credit to borrowers
Loan Commitments
Commitment amount	$ 27.2	$ 28.6

Commitments - Leases (Details)

Commitments - Leases (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Lease Commitments
Minimum rental expense	$ 3,000,000	$ 2,900,000	$ 2,900,000
Future minimum rental commitments under all noncancelable operating leases
2,018	2,809,000
2,019	2,353,000
2,020	1,919,000
2,021	1,463,000
2,022	1,293,000
Thereafter	4,557,000
Total	14,394,000
Future minimum rental income for noncancelable lease
2,018	110,000
2,019	110,000
2,020	110,000
2,021	110,000
Total	440,000
Minimum rental income	110,000	110,000	$ 110,000
Reserve Requirements
Federal Reserve Bank reserve requirements	$ 12,800,000	$ 10,700,000

Regulatory Capital and Super118

Regulatory Capital and Supervision (Details) $ in Thousands	Jul. 10, 2014	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)item	Dec. 31, 2014
Total Risk-Based Capital
Capital Conservation Buffer (percent)		2.50%	2.50%
Number of conditions or events that have changed the institution's category under capital guidelines | item		0	0
Territorial Savings Bank
Regulatory capital and supervision
Well capitalized threshold for Tier 1 risk-based capital (percent)		8.00%		6.00%
Well capitalized threshold for Common Equity Tier 1 risk-based capital (percent)		6.50%
Tier 1 Leverage Capital
Required Ratio	9.00%	5.00%	9.00%
Actual Amount		$ 218,826	$ 219,365
Actual Ratio		11.04%	11.76%
Common Equity Tier 1 Risk-Based Capital
Required Ratio		9.00%	9.00%
Actual Amount		$ 218,826	$ 219,365
Actual Ratio		23.31%	25.30%
Tier 1 Risk-Based Capital
Required Ratio		10.50%	10.50%
Actual Amount		$ 218,826	$ 219,365
Actual Ratio		23.31%	25.30%
Total Risk-Based Capital
Required Ratio		12.50%	12.50%
Actual Amount		$ 221,460	$ 221,912
Actual Ratio		23.59%	25.59%
Term to maintain Tier 1 Leverage Capital ratio as a condition of membership	3 years
Territorial Bancorp Inc.
Regulatory capital and supervision
Threshold of assets requiring consolidated regulatory capital requirements identical to those applicable to subsidiary depository institutions		$ 1,000,000
Tier 1 Leverage Capital
Required Ratio		5.00%	5.00%
Actual Amount		$ 240,548	$ 235,102
Actual Ratio		12.13%	12.60%
Common Equity Tier 1 Risk-Based Capital
Required Ratio		9.00%	9.00%
Actual Amount		$ 240,548	$ 235,102
Actual Ratio		25.62%	27.11%
Tier 1 Risk-Based Capital
Required Ratio		10.50%	10.50%
Actual Amount		$ 240,548	$ 235,102
Actual Ratio		25.62%	27.11%
Total Risk-Based Capital
Required Ratio		12.50%	12.50%
Actual Amount		$ 243,182	$ 237,649
Actual Ratio		25.90%	27.41%

Fair Value of Financial Inst119

Fair Value of Financial Instruments - Trust Preferred Securities (Details) - Trust preferred securities	12 Months Ended		72 Months Ended	120 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017Transaction	Dec. 31, 2017shares
Investment Securities
Number of market transactions of the security | Transaction			6
Period of minimal activity in trust preferred securities tranche determining the market to be inactive			72 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 Inst120

Fair Value of Financial Instruments - Estimated Fair Values (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets
Investment securities available for sale	$ 2,851
Investment securities held to maturity	406,663	$ 407,922
Carrying Amount
Assets
Cash and cash equivalents	32,089	61,273
Investment securities available for sale	2,851
Investment securities held to maturity	404,792	407,656
Loans held for sale	403	1,601
Loans receivable, net	1,488,971	1,335,987
FHLB stock	6,541	4,945
FRB stock	3,103	3,095
Accrued interest receivable	5,142	4,732
Interest rate contracts	8	104
Liabilities
Deposits	1,597,295	1,493,200
Advances from the Federal Home Loan Bank	107,200	69,000
Securities sold under agreements to repurchase	30,000	55,000
Accrued interest payable	575	218
Interest rate contracts	8	104
Estimated Fair Value
Assets
Cash and cash equivalents	32,089	61,273
Investment securities available for sale	2,851
Investment securities held to maturity	406,663	407,922
Loans held for sale	414	1,601
Loans receivable, net	1,505,097	1,352,137
FHLB stock	6,541	4,945
FRB stock	3,103	3,095
Accrued interest receivable	5,142	4,732
Interest rate contracts	8	104
Liabilities
Deposits	1,595,992	1,493,094
Advances from the Federal Home Loan Bank	107,019	69,068
Securities sold under agreements to repurchase	29,846	55,123
Accrued interest payable	575	218
Interest rate contracts	8	104
Estimated Fair Value | Level 1
Assets
Cash and cash equivalents	32,089	61,273
Accrued interest receivable	7	10
Estimated Fair Value | Level 2
Assets
Investment securities available for sale	2,851
Investment securities held to maturity	405,818	406,759
Loans held for sale	414	1,601
FHLB stock	6,541	4,945
FRB stock	3,103	3,095
Accrued interest receivable	1,045	1,064
Interest rate contracts	8	104
Liabilities
Deposits	1,285,070	1,257,157
Advances from the Federal Home Loan Bank	107,019	69,068
Securities sold under agreements to repurchase	29,846	55,123
Accrued interest payable	115	172
Interest rate contracts	8	104
Estimated Fair Value | Level 3
Assets
Investment securities held to maturity	845	1,163
Loans receivable, net	1,505,097	1,352,137
Accrued interest receivable	4,090	3,658
Liabilities
Deposits	310,922	235,937
Accrued interest payable	$ 460	$ 46

Fair Value of Financial Inst121

Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets and Liabilities Measured at Fair Value on Recurring Basis
Available-for-sale investments	$ 2,851
Fair Value, Measurements, Recurring
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	8	$ 104
Interest rate contracts - liabilities	(8)	(104)
Available-for-sale investments	2,851
Fair Value, Measurements, Recurring | Level 2
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	8	104
Interest rate contracts - liabilities	(8)	$ (104)
Available-for-sale investments	$ 2,851

Fair Value of Financial Inst122

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

Fair Value of Financial Inst123

Fair Value of Financial Instruments - Significant Unobservable Inputs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Annual cost to service (in dollars per loan)	$ 70	$ 65
Discounted cash flow model | Trust preferred securities
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Fair Value		1,066,000
Fair Value, Measurements, Nonrecurring | Trust preferred securities
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Fair Value		1,066,000
Fair Value, Measurements, Nonrecurring | Mortgage Servicing Assets
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Fair Value		341,000
Fair Value, Measurements, Nonrecurring | Level 3 | Trust preferred securities
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Fair Value		1,066,000
Fair Value, Measurements, Nonrecurring | Level 3 | Mortgage Servicing Assets
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Fair Value		$ 341,000
Fair Value, Measurements, Nonrecurring | 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%
Fair Value, Measurements, Nonrecurring | Level 3 | Discounted cash flow model | Mortgage Servicing Assets
Significant Unobservable Inputs for Level Three Nonrecurring Fair Value Measurements
Fair Value		$ 341,000
Discount rate (as a percent)		10.50%
Annual cost to service (in dollars per loan)		$ 65
Fair Value, Measurements, Nonrecurring | 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%
Fair Value, Measurements, Nonrecurring | 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%

Parent Company Only - Condensed

Parent Company Only - Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Prepaid expenses and other assets	$ 3,852	$ 2,625
Total assets	2,003,846	1,877,562
Liabilities and Equity
Equity	234,854	229,786	$ 219,641	$ 216,378
Total liabilities and stockholders' equity	2,003,846	1,877,562
Territorial Bancorp Inc.
Assets
Cash	20,093	15,288	$ 15,777	$ 16,155
Investment in Territorial Savings Bank	213,132	214,050
Receivable from Territorial Savings Bank	1,539	373
Prepaid expenses and other assets	141	81
Total assets	234,905	229,792
Liabilities and Equity
Other liabilities	51	6
Equity	234,854	229,786
Total liabilities and stockholders' equity	$ 234,905	$ 229,792

Parent Company Only - Conden125

Parent Company Only - Condensed Statement of Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest and dividend income:
Total interest income	$ 17,598	$ 17,177	$ 16,777	$ 16,781	$ 16,481	$ 16,669	$ 16,543	$ 16,380	$ 68,333	$ 66,073	$ 63,092
Noninterest expense:
Salaries									21,614	20,591	21,497
Other general and administrative expenses									4,704	4,230	4,442
Total noninterest expense	10,252	8,761	8,754	8,707	8,187	8,645	8,988	9,059	36,474	34,879	36,499
Income before income taxes	5,455	6,753	6,952	6,904	7,221	6,956	6,661	6,296	26,064	27,134	24,534
Income taxes	3,288	2,580	2,651	2,583	2,859	2,792	2,624	2,512	11,102	10,787	9,786
Net income	$ 2,167	$ 4,173	$ 4,301	$ 4,321	$ 4,362	$ 4,164	$ 4,037	$ 3,784	14,962	16,347	14,748
Territorial Bancorp Inc.
Interest and dividend income:
Dividends from Territorial Savings Bank									16,200	7,500	14,000
Interest-earning deposit with Territorial Savings Bank									49	34	29
Total interest income									16,249	7,534	14,029
Noninterest expense:
Salaries									37	40	34
Other general and administrative expenses									989	745	829
Total noninterest expense									1,026	785	863
Income before income taxes									15,223	6,749	13,166
Income taxes									(384)	(285)	(416)
Income before equity in undistributed earnings in subsidiaries									15,607	7,034	13,582
Equity in undistributed earnings of Territorial Savings Bank, net of dividends									(645)	9,313	1,166
Net income									$ 14,962	$ 16,347	$ 14,748

Parent Company Only - Conden126

Parent Company Only - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 14,962	$ 16,347	$ 14,748
Adjustments to reconcile net income to net cash from operating activities:
ESOP expense	1,529	1,353	1,210
Net (increase) decrease in prepaid expenses and other assets	(1,227)	(355)	(366)
Net cash from operating activities	20,928	18,767	17,111
Cash flows from investing activities:
Net cash from investing activities	(156,275)	(61,993)	(132,354)
Cash flows from financing activities:
Repurchases of common stock	(9)	(1,674)	(9,326)
Cash dividends paid	(11,123)	(8,409)	(7,013)
Net cash from financing activities	106,163	38,580	106,102
Net decrease in cash and cash equivalents	(29,184)	(4,646)	(9,141)
Territorial Bancorp Inc.
Cash flows from operating activities:
Net income	14,962	16,347	14,748
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed earnings of Territorial Savings Bank, net of dividends	645	(9,313)	(1,166)
ESOP expense	1,529	1,353	1,210
Net (increase) decrease in prepaid expenses and other assets	(1,226)	659	1,170
Net increase (decrease) in other liabilities	27	(18)	(18)
Net cash from operating activities	15,937	9,028	15,944
Cash flows from financing activities:
Proceeds from issuance of common stock		566	17
Repurchases of common stock	(9)	(1,674)	(9,326)
Cash dividends paid	(11,123)	(8,409)	(7,013)
Net cash from financing activities	(11,132)	(9,517)	(16,322)
Net decrease in cash and cash equivalents	4,805	(489)	(378)
Cash at beginning of the period	15,288	15,777	16,155
Cash at end of the period	$ 20,093	$ 15,288	$ 15,777

Unaudited Quarterly Financia127

Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Unaudited Quarterly Financial Information
Interest income	$ 17,598	$ 17,177	$ 16,777	$ 16,781	$ 16,481	$ 16,669	$ 16,543	$ 16,380	$ 68,333	$ 66,073	$ 63,092
Interest expense	2,697	2,518	2,253	2,121	2,053	1,964	1,944	1,883	9,589	7,844	6,515
Net interest income	14,901	14,659	14,524	14,660	14,428	14,705	14,599	14,497	58,744	58,229	56,577
Provision (reversal of provision) for loan losses	50	54	(123)	71	91	107	84	28	52	310	455
Net interest income after provision for loan losses	14,851	14,605	14,647	14,589	14,337	14,598	14,515	14,469	58,692	57,919	56,122
Noninterest income	856	909	1,059	1,022	1,071	1,003	1,134	886	3,846	4,094	4,911
Noninterest expense	10,252	8,761	8,754	8,707	8,187	8,645	8,988	9,059	36,474	34,879	36,499
Income before income taxes	5,455	6,753	6,952	6,904	7,221	6,956	6,661	6,296	26,064	27,134	24,534
Income taxes	3,288	2,580	2,651	2,583	2,859	2,792	2,624	2,512	11,102	10,787	9,786
Net income	$ 2,167	$ 4,173	$ 4,301	$ 4,321	$ 4,362	$ 4,164	$ 4,037	$ 3,784	$ 14,962	$ 16,347	$ 14,748
Basic earnings per share (in dollars per share)	$ 0.23	$ 0.45	$ 0.46	$ 0.47	$ 0.48	$ 0.45	$ 0.44	$ 0.41	$ 1.61	$ 1.78	$ 1.59
Diluted earnings per share (in dollars per share)	0.23	0.44	0.45	0.46	0.46	0.44	0.43	0.40	1.57	1.74	1.56
Cash dividends declared per common share (in dollars per share)	$ 0.50	$ 0.30	$ 0.20	$ 0.20	$ 0.38	$ 0.18	$ 0.18	$ 0.18	$ 1.20	$ 0.92	$ 0.76

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Jan. 25, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)		$ 0.50	$ 0.30	$ 0.20	$ 0.20	$ 0.38	$ 0.18	$ 0.18	$ 0.18	$ 1.20	$ 0.92	$ 0.76
Subsequent event
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)	$ 0.20