Territorial Bancorp (TBNK) 10-Q 9 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document and Entity Information
Entity Registrant Name	Territorial Bancorp Inc.
Entity Central Index Key	1,447,051
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		9,733,830
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 65,112	$ 32,089
Investment securities available for sale	2,733	2,851
Investment securities held to maturity, at amortized cost (fair value of $402,659 and $406,663 at March 31, 2018 and December 31, 2017, respectively)	409,285	404,792
Loans held for sale		403
Loans receivable, net	1,505,058	1,488,971
Federal Home Loan Bank stock, at cost	6,325	6,541
Federal Reserve Bank stock, at cost	3,106	3,103
Accrued interest receivable	5,183	5,142
Premises and equipment, net	5,588	5,721
Bank-owned life insurance	44,416	44,201
Income taxes receivable	13	1,571
Deferred income tax assets, net	4,993	4,609
Prepaid expenses and other assets	3,889	3,852
Total assets	2,055,701	2,003,846
Liabilities:
Deposits	1,665,172	1,597,295
Advances from the Federal Home Loan Bank	98,000	107,200
Securities sold under agreements to repurchase	30,000	30,000
Accounts payable and accrued expenses	24,645	26,390
Income taxes payable	1,617	1,483
Advance payments by borrowers for taxes and insurance	3,895	6,624
Total liabilities	1,823,329	1,768,992
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 9,733,830 and 9,915,058 shares at March 31, 2018 and December 31, 2017, respectively	97	99
Additional paid-in capital	67,557	73,050
Unearned ESOP shares	(5,260)	(5,383)
Retained earnings	176,856	172,782
Accumulated other comprehensive loss	(6,878)	(5,694)
Total stockholders' equity	232,372	234,854
Total liabilities and stockholders' equity	$ 2,055,701	$ 2,003,846

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Investment securities held to maturity, fair value (in dollars)	$ 402,659	$ 406,663
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	9,733,830	9,915,058
Common stock, shares outstanding	9,733,830	9,915,058

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest income:
Loans	$ 14,907	$ 13,513
Investment securities	3,129	3,081
Other investments	198	187
Total interest income	18,234	16,781
Interest expense:
Deposits	2,451	1,651
Advances from the Federal Home Loan Bank	419	254
Securities sold under agreements to repurchase	125	216
Total interest expense	2,995	2,121
Net interest income	15,239	14,660
Provision for loan losses	9	71
Net interest income after provision for loan losses	15,230	14,589
Noninterest income:
Service fees on loan and deposit accounts	415	556
Income on bank-owned life insurance	215	226
Gain on sale of investment securities		95
Gain on sale of loans	43	63
Other	69	82
Total noninterest income	742	1,022
Noninterest expense:
Salaries and employee benefits	5,647	5,083
Occupancy	1,516	1,449
Equipment	942	866
Federal deposit insurance premiums	153	148
Other general and administrative expenses	1,135	1,161
Total noninterest expense	9,393	8,707
Income before income taxes	6,579	6,904
Income taxes	1,759	2,583
Net income	$ 4,820	$ 4,321
Basic earnings per share (in dollars per share)	$ 0.52	$ 0.47
Diluted earnings per share (in dollars per share)	0.51	0.46
Cash dividends declared per common share (in dollars per share)	$ 0.20	$ 0.20
Basic weighted-average shares outstanding (in shares)	9,284,496	9,215,142
Diluted weighted-average shares outstanding (in shares)	9,484,177	9,445,989

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidated Statements of Comprehensive Income
Net income	$ 4,820	$ 4,321
Change in unrealized loss on securities	(49)	2
Other comprehensive income (loss), net of tax	(49)	2
Comprehensive income	$ 4,771	$ 4,323

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, 2016	$ 98	$ 71,914	$ (5,872)	$ 168,962	$ (5,316)	$ 229,786
Increase (Decrease) in Stockholders' Equity
Net income				4,321		4,321
Other comprehensive income (loss)					2	2
Cash dividends paid ($0.20 per share and $0.20 per share for the three months ended March 31, 2018 and March 31, 2017, respectively)				(1,842)		(1,842)
Share-based compensation		(38)				(38)
Allocation of ESOP shares (12,233 shares for the three months ended March 31, 2018 and March 31, 2017)		273	122			395
Repurchase of company common stock (199,236 shares and 28,702 shares for the three months ended March 31, 2018 and March 31, 2017, respectively)	(1)	(954)				(955)
Exercise of options for common stock (18,008 shares and 54,976 shares for the three months ended March 31, 2018 and March 31, 2017, respectively)	1	954				955
Balance at Mar. 31, 2017	98	72,149	(5,750)	171,441	(5,314)	232,624
Balance at Dec. 31, 2017	99	73,050	(5,383)	172,782	(5,694)	234,854
Increase (Decrease) in Stockholders' Equity
Net income				4,820		4,820
Other comprehensive income (loss)					(49)	(49)
Reclassification of deferred taxes				1,135	(1,135)	1,100
Cash dividends paid ($0.20 per share and $0.20 per share for the three months ended March 31, 2018 and March 31, 2017, respectively)				(1,881)		(1,881)
Share-based compensation		67				67
Allocation of ESOP shares (12,233 shares for the three months ended March 31, 2018 and March 31, 2017)		253	123			376
Repurchase of company common stock (199,236 shares and 28,702 shares for the three months ended March 31, 2018 and March 31, 2017, respectively)	(2)	(6,125)				(6,127)
Exercise of options for common stock (18,008 shares and 54,976 shares for the three months ended March 31, 2018 and March 31, 2017, respectively)		312				312
Balance at Mar. 31, 2018	$ 97	$ 67,557	$ (5,260)	$ 176,856	$ (6,878)	$ 232,372

Consolidated Statements of Sto7

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidated Statements of Stockholders' Equity, Share Data
Cash dividends paid (in dollars per share)	$ 0.2	$ 0.2
Common Stock
Consolidated Statements of Stockholders' Equity, Share Data
Allocation of ESOP shares, shares	12,233	12,233
Repurchase of company common stock, shares	199,236	28,702
Exercise of options for common stock, shares	18,008	54,976

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 4,820	$ 4,321
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	9	71
Depreciation and amortization	314	243
Deferred income tax expense (benefit)	(367)	367
Amortization of fees, discounts, and premiums	(136)	(129)
Origination of loans held for sale	(4,129)	(8,098)
Proceeds from sales of loans held for sale	4,575	8,011
Gain on sale of loans, net	(43)	(63)
Net gain on sale of real estate owned	(4)
Gain on sale of investment securities held to maturity		(95)
ESOP expense	376	395
Share-based compensation expense	67	(38)
Increase in accrued interest receivable	(41)	(34)
Net increase in bank-owned life insurance	(215)	(226)
Net increase in prepaid expenses and other assets	(37)	(304)
Net increase (decrease) in accounts payable and accrued expenses	(1,769)	161
Net decrease in advance payments by borrowers for taxes and insurance	(2,729)	(2,188)
Net decrease in income taxes receivable	1,558	122
Net increase in income taxes payable	134	1,712
Net cash from operating activities	2,383	4,228
Cash flows from investing activities:
Purchases of investment securities held to maturity	(14,983)
Principal repayments on investment securities held to maturity	10,495	14,162
Principal repayments on investment securities available for sale	49
Proceeds from sale of investment securities held to maturity		1,589
Loan originations, net of principal repayments on loans receivable	(16,008)	(31,158)
Purchases of Federal Home Loan Bank stock	(252)	(68)
Proceeds from redemption of Federal Home Loan Bank stock	468
Purchases of Federal Reserve Bank stock	(3)	(8)
Proceeds from sale of real estate owned	50
Purchases of premises and equipment	(181)	(759)
Net cash from investing activities	(20,365)	(16,242)
Cash flows from financing activities:
Net increase in deposits	67,877	55,706
Proceeds from advances from the Federal Home Loan Bank	2,500
Repayments of advances from the Federal Home Loan Bank	(11,700)
Repurchases of common stock	(5,815)
Cash dividends paid	(1,857)	(1,842)
Net cash from financing activities	51,005	53,864
Net increase in cash and cash equivalents	33,023	41,850
Cash and cash equivalents at beginning of the period	32,089	61,273
Cash and cash equivalents at end of the period	65,112	103,123
Cash paid for:
Interest on deposits and borrowings	2,590	2,003
Income taxes	434	429
Supplemental disclosure of noncash investing and financing activities:
Company stock acquired through stock swap and net settlement transactions	312	$ 955
Loans transferred to real estate owned	46
Dividends declared, not yet paid	$ 24

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2018
Summary of Significant Accounting Policies
Basis of Presentation	(1) Basis of Presentation The accompanying unaudited consolidated financial statements of Territorial Bancorp Inc. (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company’s consolidated financial statements and notes thereto filed as part of the Annual Report on Form 10-K for the year ended December 31, 2017. In the opinion of management, all adjustments necessary for a fair presentation have been made and consist only of normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. .

Organization

Organization	3 Months Ended
	Mar. 31, 2018
Organization
Organization	(2) Organization On July 10, 2009, Territorial Savings Bank completed a conversion from a mutual holding company to a stock holding company. As part of the conversion, Territorial Mutual Holding Company and Territorial Savings Group, Inc., the former holding companies for Territorial Savings Bank, ceased to exist as separate legal entities, and Territorial Bancorp Inc. became the holding company for Territorial Savings Bank. Upon completion of the conversion and reorganization, a special “liquidation account” was established in an amount equal to the total equity of Territorial Mutual Holding Company as of December 31, 2008. The liquidation account is to provide eligible account holders and supplemental eligible account holders who maintain their deposit accounts with Territorial Savings Bank after the conversion with a liquidation interest in the unlikely event of the complete liquidation of Territorial Savings Bank after the conversion. The balance of the liquidation account at December 31, 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.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	(3) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) amended the Revenue Recognition topic of the FASB Accounting Standards Codification (ASC). The amendment seeks to clarify the principles for recognizing revenue as well as to develop common revenue standards for U.S. generally accepted accounting principles and International Financial Reporting Standards. The Company 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. Based on the Company’s analysis of these revenue sources, including the amount of revenue, the timing of services rendered and timing of payment for these services, there is no material change in the timing of revenue recognition under the amendment. The Company adopted this amendment on January 1, 2018, using the modified retrospective approach. Since there was no material impact on the timing of revenue recognition, no adjustment to beginning retained earnings was deemed necessary. See Note 14, Revenue Recognition, for further information. 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 of financial instruments measured at amortized cost on the balance sheet, and (d) a requirement to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The Company adopted this amendment as of January 1, 2018, and there was no material effect on its consolidated financial statements. In February 2016, the FASB amended the Leases topic of the FASB ASC. The primary effects of the amendment will be to recognize lease assets and lease liabilities on the balance sheet and to disclose certain information about leasing arrangements. The amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has several lease agreements for branch locations and equipment that will require recognition on the consolidated balance sheets upon adoption of the amendment. The Company will continue to evaluate the effects that the adoption of this amendment will have on its consolidated financial statements. In 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 Company adopted this amendment on January 1, 2018, and there was no material effect on its consolidated financial statements. In February 2018, the FASB amended the Income Statement – Reporting Comprehensive Income topic of the FASB ASC. Prior to the adoption of the amendment, deferred taxes previously included in accumulated other comprehensive income were not allowed to be adjusted for changes in tax rates. This amendment allows the reclassification of the tax effects resulting from the change in the federal corporate tax rate in the Tax Cuts and Jobs Act, which was passed in December 2017, from accumulated other comprehensive income to retained earnings. 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 adopted this amendment during the first quarter of 2018 with the reclassification of $1.1 million of deferred taxes from accumulated other comprehensive income to retained earnings.

Cash and Cash Equivalents

Cash and Cash Equivalents	3 Months Ended
	Mar. 31, 2018
Cash and Cash Equivalents
Cash and Cash Equivalents	(4) Cash and Cash Equivalents The table below presents the balances of cash and cash equivalents: March 31, December 31, (Dollars in thousands) 2018 2017 Cash and due from banks $ 8,779 $ 9,114 Interest-earning deposits in other banks 56,333 22,975 Cash and cash equivalents $ 65,112 $ 32,089 Interest-earning deposits in other banks consist primarily of deposits at the Federal Reserve Bank of San Francisco.

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2018
Investment Securities.
Investment Securities	(5) Investment Securities The amortized cost and fair values of investment securities are as follows: Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value March 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,821 $ — $ (88) $ 2,733 Total $ 2,821 $ — $ (88) $ 2,733 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 409,026 $ 2,935 $ (10,083) $ 401,878 Trust preferred securities 259 522 — 781 Total $ 409,285 $ 3,457 $ (10,083) $ 402,659 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 The amortized cost and estimated fair value of investment securities by maturity date at March 31, 2018 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 2,821 2,733 Total $ 2,821 $ 2,733 Held-to-maturity: Due within 5 years $ 8 $ 8 Due after 5 years through 10 years 79 80 Due after 10 years 409,198 402,571 Total $ 409,285 $ 402,659 Realized gains and losses and the proceeds from sales of held-to-maturity securities are shown in the table below. All sales of securities were U.S. government-sponsored mortgage-backed securities. Three Months Ended March 31, (Dollars in thousands) 2018 2017 Proceeds from sales $ — $ 1,589 Gross gains — 95 Gross losses — — The sale of these mortgage-backed securities, for which the Company had already collected a substantial portion of the outstanding purchased principal (at least 85%), is in accordance with the Investments – Debt and Equity Securities topic of the FASB ASC and does not taint management’s assertion of intent to hold remaining securities in the held-to-maturity portfolio to maturity. Investment securities with amortized costs of $324.1 million and $287.2 million at March 31, 2018 and December 31, 2017, respectively, were pledged to secure deposits made by state and local governments, securities sold under agreements to repurchase and transaction clearing accounts. Provided below is a summary of investment securities which were in an unrealized loss position at March 31, 2018 and December 31, 2017. 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) March 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,733 $ 88 $ — $ — 1 $ 2,733 $ 88 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 144,421 $ 2,618 $ 133,086 $ 7,465 78 $ 277,507 $ 10,083 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 Mortgage-Backed Securities. The unrealized losses on the Company’s investment in mortgage-backed securities were caused by increases in market interest rates subsequent to purchase. All of the mortgage-backed securities are guaranteed by Freddie Mac or Fannie Mae, which are U.S. government-sponsored enterprises, or Ginnie Mae, which is a U.S. government agency. Since the decline in market value is attributable to changes in interest rates and not credit quality, and the Company does not intend to sell these investments until maturity and it is not more likely than not that the Company will be required to sell such investments prior to recovery of its cost basis, the Company does not consider these investments to be other-than-temporarily impaired as of March 31, 2018 and December 31, 2017. Trust Preferred Securities . At March 31, 2018, the Company owned one trust preferred security, PreTSL XXIII. PreTSL XXIII has an amortized cost and a remaining cost basis of $259,000 at March 31, 2018. 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 75 months in the same tranche of securities that we own and no new issuances of pooled trust preferred securities have occurred since 2007. We used a discounted cash flow model to determine whether this security is other-than-temporarily impaired. The assumptions used in preparing the discounted cash flow model include the following: estimated discount rates, estimated deferral and default rates on collateral, and estimated cash flows. Based on the Company’s review, the Company’s investment in PreTSL XXIII did not incur additional impairment during the three months ended March 31, 2018 and there is no accumulated other comprehensive loss related to noncredit factors. The table below provides a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold: Three Months Ended March 31, (Dollars in thousands) 2018 2017 Balance at the beginning of the period $ 2,403 $ 2,403 Credit losses on debt securities for which other-than-temporary impairment was not previously recognized — — Credit losses on debt securities which were sold — — Balance at the end of the period $ 2,403 $ 2,403

Loans Receivable and Allowance

Loans Receivable and Allowance for Loan Losses	3 Months Ended
	Mar. 31, 2018
Loans Receivable and Allowance for Loan Losses
Loans Receivable and Allowance for Loan Losses	(6) Loans Receivable and Allowance for Loan Losses The components of loans receivable are as follows: March 31, December 31, (Dollars in thousands) 2018 2017 Real estate loans: First mortgages: One- to four-family residential $ 1,459,221 $ 1,444,625 Multi-family residential 10,703 10,799 Construction, commercial and other 23,601 21,787 Home equity loans and lines of credit 12,876 12,882 Total real estate loans 1,506,401 1,490,093 Other loans: Loans on deposit accounts 227 274 Consumer and other loans 4,160 4,340 Total other loans 4,387 4,614 Less: Net unearned fees and discounts (3,176) (3,188) Allowance for loan losses (2,554) (2,548) Total unearned fees, discounts and allowance for loan losses (5,730) (5,736) Loans receivable, net $ 1,505,058 $ 1,488,971 The table below presents the activity in the allowance for loan losses by portfolio segment: Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended March 31, 2018: Balance, beginning of period $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 Provision (reversal of provision) for loan losses (1) (9) — (3) 22 9 1,720 530 1 52 254 2,557 Charge-offs — — — (5) — (5) Recoveries — — — 2 — 2 Net charge-offs — — — (3) — (3) Balance, end of period $ 1,720 $ 530 $ 1 $ 49 $ 254 $ 2,554 Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended March 31, 2017: Balance, beginning of period $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 Provision (reversal of provision) for loan losses (11) 45 (1) 23 15 71 1,583 564 1 138 237 2,523 Charge-offs (11) — — (5) — (16) Recoveries 31 — — 2 — 33 Net recoveries (charge-offs) 20 — — (3) — 17 Balance, end of period $ 1,603 $ 564 $ 1 $ 135 $ 237 $ Management considers the allowance for loan losses at March 31, 2018 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 March 31, 2018: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,720 530 1 49 254 2,554 Total ending allowance balance $ 1,720 $ 530 $ 1 $ 49 $ 254 $ 2,554 Loans: Ending loan balance: Individually evaluated for impairment $ 3,370 $ — $ 160 $ — $ — $ 3,530 Collectively evaluated for impairment 1,463,444 23,518 12,720 4,400 — 1,504,082 Total ending loan balance $ 1,466,814 $ 23,518 $ 12,880 $ 4,400 $ — $ 1,507,612 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 The table below presents the balance of impaired loans individually evaluated for impairment by class of loans: Unpaid Recorded Principal (Dollars in thousands) Investment Balance March 31, 2018: With no related allowance recorded: One- to four-family residential mortgages $ 3,370 $ 3,952 Home equity loans and lines of credit 160 227 Total $ 3,530 $ 4,179 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 The table below presents the average recorded investment and interest income recognized on impaired loans by class of loans: For the Three Months Ended March 31, Average Interest Recorded Income (Dollars in thousands) Investment Recognized 2018: With no related allowance recorded: One- to four-family residential mortgages $ 3,393 $ 13 Home equity loans and lines of credit 162 — Total $ 3,555 $ 13 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,525 $ 17 Home equity loans and lines of credit 183 — Total $ 4,708 $ 17 There were no loans individually evaluated for impairment with a related allowance for loan loss as of March 31, 2018 or December 31, 2017. Loans individually evaluated for impairment do not have an allocated allowance for loan loss because they were written down to fair value at the time of impairment. The Company had 13 nonaccrual loans with a book value of $2.6 million at March 31, 2018 and 17 nonaccrual loans with a book value of $4.2 million as of December 31, 2017. The Company collected interest on nonaccrual loans of $30,000 and $38,000 during the three months ended March 31, 2018 and 2017, 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 $45,000 and $59,000 during the three months ended March 31, 2018 and 2017, 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 March 31, 2018 and December 31, 2017. The table below presents the aging of loans and accrual status by class of loans: Loans More Than 90 Days 30 - 59 60 - 89 90 Days or Past Due Days Past Days Past Greater Total Past Loans Not Total Nonaccrual and Still (Dollars in thousands) Due Due Past Due Due Past Due Loans Loans Accruing March 31, 2018: One- to four-family residential mortgages $ 680 $ — $ 976 $ 1,656 $ 1,454,472 $ 1,456,128 $ 2,459 $ — Multi-family residential mortgages — — — — 10,686 10,686 — — Construction, commercial and other mortgages — — — — 23,518 23,518 — — Home equity loans and lines of credit — — 41 41 12,839 12,880 160 — Loans on deposit accounts — — — — 227 227 — — Consumer and other 14 3 — 17 4,156 4,173 — — Total $ 694 $ 3 $ 1,017 $ 1,714 $ 1,505,898 $ 1,507,612 $ 2,619 $ — 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 $ — 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. There were no loans modified in a troubled debt restructuring during the three months ended March 31, 2018 or 2017. There were no new troubled debt restructurings within the 12 months ended March 31, 2018 that subsequently defaulted. The table below summarizes troubled debt restructurings by class of loans: Number of Accrual Number of Nonaccrual (Dollars in thousands) Loans Status Loans Status Total March 31, 2018: One- to four-family residential mortgages 4 $ 911 5 $ 1,051 $ 1,962 Home equity loans and lines of credit — — 1 89 89 Total 4 $ 911 6 $ 1,140 $ 2,051 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 One of the restructured loans, for $149,000, was more than 149 days delinquent and not accruing interest as of March 31, 2018 and December 31, 2017. Restructurings include deferrals of interest and/or principal payments and temporary or permanent reductions in interest rates due to the financial difficulties of the borrowers. At March 31, 2018, we had no commitments to lend any additional funds to these borrowers. The Company had no real estate owned as of March 31, 2018 or December 31, 2017. There were two one- to four-family residential mortgage loans totaling $585,000 and one home equity loan for $41,000 in the process of foreclosure as of March 31, 2018, and 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. Nearly all of our real estate loans are collateralized by real estate located in the State of Hawaii. Loan-to-value ratios on these real estate loans generally do not exceed 80% at the time of origination. During the three months ended March 31, 2018 and 2017, the Company sold $4.5 million and $8.0 million, respectively, of mortgage loans held for sale and recognized gains of $43,000 and $63,000, respectively. The Company did not have any loans held for sale at March 31, 2018. The Company had one loan held for sale for $403,000 at December 31, 2017. The Company serviced loans for others of $33.7 million at March 31, 2018 and $35.5 million at December 31, 2017. Of these amounts, $1.5 million relate to securitizations for which the Company continues to hold the related mortgage-backed securities at March 31, 2018 and December 31, 2017. The amount of contractually specified servicing fees earned for the three-month periods ended March 31, 2018 and 2017 was $23,000 and $28,000, respectively. The fees are reported in service fees on loan and deposit accounts in the consolidated statements of income.

Securities Sold Under Agreement

Securities Sold Under Agreements to Repurchase	3 Months Ended
	Mar. 31, 2018
Securities Sold Under Agreements to Repurchase
Securities Sold Under Agreements to Repurchase	(7) Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase are treated as financings and the obligations to repurchase the identical securities sold are reflected as a liability with the securities collateralizing the agreements classified as an asset. Securities sold under agreements to repurchase are summarized as follows: March 31, 2018 December 31, 2017 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ 20,000 1.66 % $ — — % Over 1 year to 2 years 10,000 1.65 25,000 1.66 Over 2 years to 3 years — — 5,000 1.65 Total $ 30,000 1.66 % $ 30,000 1.66 % Below is a summary comparing the carrying value and fair value of securities pledged to secure repurchase agreements, the repurchase liability, and the amount at risk at March 31, 2018. 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 $ 38,712 $ 37,994 $ 30,000 $ 8,712 14

Offsetting of Financial Liabili

Offsetting of Financial Liabilities	3 Months Ended
	Mar. 31, 2018
Offsetting of Financial Liabilities
Offsetting of Financial Liabilities	(8) Offsetting of Financial Liabilities The following table presents our securities sold under agreements to repurchase that are subject to a right of offset in the event of default. See Note 7, Securities Sold Under Agreements to Repurchase, for additional information. Net Amount of Gross Amount Not Offset in the Gross Amount Gross Amount Liabilities Balance Sheet of Recognized Offset in the Presented in the Financial Cash Collateral (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Pledged Net Amount March 31, 2018: Securities sold under agreements to repurchase $ 30,000 $ — $ 30,000 $ 30,000 $ — $ — December 31, 2017: Securities sold under agreements to repurchase $ 30,000 $ — $ 30,000 $ 30,000 $ — $ —

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Mar. 31, 2018
Employee Benefit Plans
Employee Benefit Plans	(9) Employee Benefit Plans The Company has a noncontributory defined benefit pension plan (Pension Plan) that covers most employees with at least one year of service. Effective December 31, 2008, under approved changes to the Pension Plan, there were no further accruals of benefits for any participants and benefits will not increase with any additional years of service. Net periodic benefit cost, subsequent to December 31, 2008, has not been significant and is not disclosed in the table below. The Company also sponsors a Supplemental Employee Retirement Plan (SERP), a noncontributory supplemental retirement benefit plan, which covers certain current and former employees of the Company for amounts in addition to those provided under the Pension Plan. The components of net periodic benefit cost were as follows: SERP Three Months Ended March 31, (Dollars in thousands) 2018 2017 Net periodic benefit cost for the period: Service cost $ 20 $ 10 Interest cost 37 35 Expected return on plan assets — — Amortization of prior service cost — — Recognized actuarial loss — — Recognized curtailment loss — — Net periodic benefit cost $ 57 $ 45 The components of net periodic benefit cost other than the service cost component are included in other general and administrative expenses in the consolidated statements of income. In prior years, these amounts were included in salaries and employee benefits along with the service cost component. The prior year amounts in the consolidated statements of income have been adjusted for comparability purposes. The Company used the amounts disclosed in prior years to estimate the amount of the required adjustment.

Employee Stock Ownership Plan

Employee Stock Ownership Plan	3 Months Ended
	Mar. 31, 2018
Employee Stock Ownership Plan
Employee Stock Ownership Plan
Employee Stock Ownership Plan	(10) Employee Stock Ownership Plan Effective January 1, 2009, Territorial Savings Bank adopted an Employee Stock Ownership Plan (ESOP) for eligible employees. The ESOP borrowed $9.8 million from the Company and used those funds to acquire 978,650 shares, or 8%, of the total number of shares issued by the Company in its initial public offering. The shares were acquired at a price of $10.00 per share. The loan is secured by the shares purchased with the loan proceeds and will be repaid by the ESOP over the 20-year term of the loan with funds from Territorial Savings Bank’s contributions to the ESOP and dividends payable on the shares. The interest rate on the ESOP loan is an adjustable rate equal to the prime rate, as published in The Wall Street Journal. The interest rate adjusts annually and will be the prime rate on the first business day of the calendar year. Shares purchased by the ESOP are held by a trustee in an unallocated suspense account, and shares are released annually from the suspense account on a pro-rata basis as principal and interest payments are made by the ESOP to the Company. The trustee allocates the shares released among participants on the basis of each participant’s proportional share of compensation relative to all participants. As shares are committed to be released from the suspense account, Territorial Savings Bank reports compensation expense based on the average fair value of shares released with a corresponding credit to stockholders’ equity. The shares committed to be released are considered outstanding for earnings per share computations. Compensation expense recognized for the three months ended March 31, 2018 and 2017 amounted to $376,000 and $321,000, respectively. Shares held by the ESOP trust were as follows: March 31, December 31, 2018 2017 Allocated shares 410,145 397,912 Unearned shares 526,028 538,261 Total ESOP shares 936,173 936,173 Fair value of unearned shares, in thousands $ 15,602 $ 16,616 The ESOP restoration plan is a nonqualified plan that provides supplemental benefits to certain executives who are prevented from receiving the full benefits contemplated by the ESOP’s benefit formula. The supplemental cash payments consist of payments representing shares that cannot be allocated to the participants under the ESOP due to IRS limitations imposed on tax-qualified plans. We accrue for these benefits over the period during which employees provide services to earn these benefits. For the three months ended March 31, 2018 and 2017, we accrued $95,000 and $117,000, respectively, for the ESOP restoration plan.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2018
2010 Equity Incentive Plan
Share-Based Compensation
Share-Based Compensation	(11) Share-Based Compensation On August 19, 2010, Territorial Bancorp Inc. adopted the 2010 Equity Incentive Plan, which provides for awards of stock options and restricted stock to key officers and outside directors. In accordance with the Compensation – Stock Compensation topic of the FASB ASC, the cost of the 2010 Equity Incentive Plan is based on the fair value of the awards on the grant date. The fair value of restricted stock is based on the closing price of the Company’s stock on the grant date. The fair value of stock options is estimated using a Black-Scholes option pricing model using assumptions for dividend yield, stock price volatility, risk-free interest rate and option term. These assumptions are based on our judgments regarding future events, are subjective in nature, and cannot be determined with precision. The cost of the awards will be recognized on a straight-line basis over the three, five- or six-year vesting period during which participants are required to provide services in exchange for the awards. The Company recognized compensation expense, measured as the fair value of the share-based award on the date of grant, on a straight-line basis over the vesting period. Share-based compensation is recorded in the statement of income as a component of salaries and employee benefits with a corresponding increase in shareholders’ equity. The table below presents information on compensation expense and the related tax benefit for all share-based awards: Three Months Ended March 31, (In thousands) 2018 2017 Compensation expense $ 67 $ 9 Income tax benefit 18 4 Shares of our common stock issued under the 2010 Equity Incentive Plan shall come from authorized shares. The maximum number of shares that will be awarded under the plan will be 1,862,637 shares. Stock Options The table below presents the stock option activity for the three months ended March 31, 2018 and 2017: Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2017 411,543 $ 17.48 2.73 $ 5,509 Granted — — — — Exercised 18,008 17.36 — 237 Forfeited — — — — Expired — — — — Options outstanding at March 31, 2018 393,535 $ 17.49 2.48 $ 4,789 Options outstanding at December 31, 2016 706,430 $ 17.43 3.70 $ 10,884 Granted — — — — Exercised 54,976 17.36 — 874 Forfeited — — — — Expired — — — — Options outstanding at March 31, 2017 651,454 $ 17.44 3.46 $ 8,945 Options vested and exercisable at March 31, 2018 $ $ 4,785 The following summarizes certain stock option activity of the Company: For the Three Months Ended March 31, (In thousands) 2018 2017 Intrinsic value of stock options exercised $ 237 $ 874 Proceeds received from stock options exercised 313 955 Tax benefits realized from stock options exercised 42 307 Total fair value of stock options that vested — — During the three months ended March 31, 2018, we issued 7,772 shares of common stock, net, in exchange for 18,008 stock options and 10,236 shares of common stock. Pursuant to the provisions of our equity incentive plan, optionees are permitted to use the value of our common stock they own in a stock swap transaction or net settlement to pay the exercise price of stock options. As of March 31, 2018, the Company had $2,000 of unrecognized compensation costs related to the stock option plan that will be amortized over a three-year vesting period. Restricted Stock Restricted stock awards are accounted for as fixed grants using the fair value of the Company’s stock at the time of grant. Unvested restricted stock may not be disposed of or transferred during the vesting period. Restricted stock carries the right to receive dividends, although dividends attributable to restricted stock are retained by the Company until the shares vest, at which time they are paid to the award recipient. The table below presents the restricted stock activity: Weighted Average Grant Restricted Date Fair Stock Value Nonvested at December 31, 2017 10,804 $ 29.16 Granted 10,019 30.73 Vested — — Forfeited — — Nonvested at March 31, 2018 20,823 $ 29.92 Nonvested at December 31, 2016 2,400 $ 26.23 Granted — — Vested — — Forfeited — — Nonvested at March 31, 2017 2,400 $ 26.23 During the three months ended March 31, 2018, the Company issued 10,019 shares of restricted stock to certain members of executive management under the 2010 Equity Incentive Plan. The fair value of the restricted stock is based on the value of the Company’s stock on the date of grant. Restricted stock will vest over three years from the date of grant. As of March 31, 2018, the Company had $516,000 of unrecognized compensation costs related to restricted stock. During the three months ended March 31, 2018, the Company issued 12,018 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 2021 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, 2017 11,525 $ 29.53 Granted 12,018 30.73 Vested — — Forfeited — — Nonvested at March 31, 2018 23,543 $ 30.14 The fair value of these PRSUs is based on the fair value of the Company’s stock on the date of grant. As of March 31, 2018, the Company had $390,000 of unrecognized compensation costs related to these PRSUs. Performance will be measured over a three-year performance period and will be cliff vested. During the three months ended March 31, 2018, the Company issued 3,005 of PRSUs to certain members of executive management under the 2010 Equity Incentive Plan. These PRSUs will vest in the first quarter of 2021 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: March 8, 2018 Performance period: January 1, 2018 to December 31, 2020 2.82 year risk-free rate on grant date: 2.39% December 31, 2017 closing price: $30.87 Closing stock price on the date of grant: $30.73 Annualized volatility (based on 2.82 year historical volatility as of the grant date): 16.6% 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, 2017 2,881 $ 24.44 Granted 3,005 28.32 Vested — — Forfeited — — Nonvested at March 31, 2018 5,886 $ 26.42 As of March 31, 2018, the Company had $89,000 of unrecognized compensation costs related to the PRSUs that are based on a market condition. Performance will be measured over a three-year performance period and will be cliff vested.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share
Earnings Per Share	(12) Earnings Per Share Holders of unvested restricted stock receive nonforfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Unvested restricted stock awards that contain nonforfeitable rights to dividends or dividend equivalents are considered to be participating securities in the earnings per share computation using the two-class method. Under the two-class method, earnings are allocated to common shareholders and participating securities according to their respective rights to earnings. The table below presents the information used to compute basic and diluted earnings per share: Three Months Ended (Dollars in thousands, except per share data) 2018 2017 Net income $ 4,820 $ 4,321 Income allocated to participating securities (15) (1) Net income available to common shareholders $ 4,805 $ 4,320 Weighted-average number of shares used in: Basic earnings per share 9,284,496 9,215,142 Dilutive common stock equivalents: Stock options and restricted stock units 199,681 230,847 Diluted earnings per share 9,484,177 9,445,989 Net income per common share, basic $ 0.52 $ 0.47 Net income per common share, diluted $ 0.51 $ 0.46

Other Comprehensive Income and

Other Comprehensive Income and Loss	3 Months Ended
	Mar. 31, 2018
Other Comprehensive Income and Loss
Other Comprehensive Income and Loss	(13) Other Comprehensive Income and Loss The table below presents the changes in the components of accumulated other comprehensive income and loss, net of taxes: Noncredit Related Loss on Unfunded Trust Unrealized Pension Preferred Loss on (Dollars in thousands) Liability Securities Securities Total Three months ended March 31, 2018 Balances at beginning of period $ 5,657 $ — $ 37 $ 5,694 Other comprehensive loss, net of taxes — — 49 49 Amounts reclassified from accumulated other comprehensive loss 1,126 — 9 1,135 Net current period other comprehensive loss 1,126 — 58 1,184 Balances at end of period $ 6,783 $ — $ 95 $ 6,878 Three months ended March 31, 2017 Balances at beginning of period $ 5,284 $ — $ 32 $ 5,316 Other comprehensive income, net of taxes — — (2) (2) Net current period other comprehensive income — — (2) (2) Balances at end of period $ 5,284 $ — $ 30 $ 5,314 The reclassification from accumulated other comprehensive loss for the three months ended March 31, 2018, was related to the FASB ASC amendment to the Income Statement – Reporting Comprehensive Income topic issued in February 2018. This amendment allowed the reclassification of deferred taxes in accumulated other comprehensive income to retained earnings. See Note 3, Recently Issued Accounting Pronouncements, for additional information. The table below presents the tax effect on each component of accumulated other comprehensive income and loss: Three Months Ended March 31, 2018 2017 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized loss on securities $ 66 $ (17) $ 49 $ (3) $ 1 $ (2) Total $ 66 $ (17) $ 49 $ (3) $ 1 $ (2)

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2018
Revenue Recognition
Revenue Recognition	(14) Revenue Recognition The Company’s contracts with customers are generally short-term in nature, with cycles of one year or less. These can range from an immediate term for services such as wire transfers, foreign currency exchanges and cashier’s check purchases, to several days for services such as processing annuity and mutual fund sales. Some contracts may be of an ongoing nature, such as providing deposit account services, including ATM access, check processing, account analysis and check ordering. However, provision of an assessable service and payment for such service is usually concurrent or closely timed. Contracts related to financial instruments, such as loans, investments and debt, are excluded from the scope of this reporting requirement. After analyzing the Company’s revenue sources, including the amount of revenue received, the timing of services rendered and the timing of payment for these services, the Company has determined that the rendering of services and the payment for such services are generally closely matched. Any differences are not material to the Company’s consolidated financial statements. Accordingly, the Company generally records income when payment for services is received. Revenue from contracts with customers is reported in service fees on loan and deposit accounts and in other noninterest income in the consolidated statement of income. The table below reconciles the revenue from contracts with customers and other revenue reported in those line items: Service Fees on Loan and Deposit (Dollars in thousands) Accounts Other Total March 31, 2018: Revenue from contracts with customers $ 320 $ 41 $ 361 Other revenue 95 28 123 Total $ 415 $ 69 $ 484 March 31, 2017: Revenue from contracts with customers $ 376 $ 54 $ 430 Other revenue 180 28 208 Total $ 556 $ 82 $ 638

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2018
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(15) 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. Investment Securities Available for Sale. 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. Interest Rate Contracts. The Company may enter into interest rate lock commitments with borrowers on loans intended to be sold. To manage interest rate risk on the lock commitments, the Company may also enter into forward loan sale commitments. The interest rate lock commitments and forward loan sale commitments are treated as derivatives and are recorded at their fair value determined by referring to prices quoted in the secondary market for similar contracts. Interest rate contracts that are classified as assets are included with prepaid expenses and other assets on the consolidated balance sheet while interest rate contracts that are classified as liabilities are included with accounts payable and accrued expenses. The estimated fair values of the Company’s financial instruments are as follows: Carrying Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 March 31, 2018 Assets Cash and cash equivalents $ 65,112 $ 65,112 $ 65,112 $ — $ — Investment securities available for sale 2,733 2,733 — 2,733 — Investment securities held to maturity 409,285 402,659 — 401,878 781 Loans receivable, net 1,505,058 1,486,100 — — 1,486,100 FHLB stock 6,325 6,325 — 6,325 — FRB stock 3,106 3,106 — 3,106 — Accrued interest receivable 5,183 5,183 7 1,108 4,068 Interest rate contracts 8 8 — 8 — Liabilities Deposits 1,665,172 1,662,008 — 1,282,798 379,210 Advances from the Federal Home Loan Bank 98,000 97,320 — 97,320 — Securities sold under agreements to repurchase 30,000 29,716 — 29,716 — Accrued interest payable 981 981 — 116 865 Interest rate contracts 8 8 — 8 — 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 — At March 31, 2018 and December 31, 2017, neither the commitment fees received on commitments to extend credit nor the fair value thereof was material to the consolidated financial statements of the Company. The table below presents the balance of assets and liabilities measured at fair value on a recurring basis: (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2018 Interest rate contracts — assets $ — $ 8 $ — $ 8 Interest rate contracts — liabilities — (8) — (8) Available-for-sale investments — 2,733 — 2,733 December 31, 2017 Interest rate contracts — assets $ — $ 8 $ — $ 8 Interest rate contracts — liabilities — (8) — (8) Available-for-sale investments — 2,851 — 2,851 The table below presents the balance of assets measured at fair value on a nonrecurring basis as of December 31, 2017 and the related losses for the year ended December 31, 2017. There were no assets measured at fair value as of March 31, 2018. 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) The fair value of impaired loans is determined using the value of collateral less estimated selling costs. Gains and losses on impaired loans are included in the provision for loan losses in the consolidated statements of income.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events
Subsequent Events	(16) Subsequent Events On April 26, 2018, the Board of Directors of Territorial Bancorp Inc. declared a quarterly cash dividend of $0.20 per share of common stock. The dividend is expected to be paid on May 24, 2018 to stockholders of record as of May 10, 2018.

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	3 Months Ended
	Mar. 31, 2018
Cash and Cash Equivalents
Schedule of balances of cash and cash equivalents	March 31, December 31, (Dollars in thousands) 2018 2017 Cash and due from banks $ 8,779 $ 9,114 Interest-earning deposits in other banks 56,333 22,975 Cash and cash equivalents $ 65,112 $ 32,089

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2018
Investment Securities.
Schedule of amortized cost and fair values of investment securities	Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value March 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,821 $ — $ (88) $ 2,733 Total $ 2,821 $ — $ (88) $ 2,733 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 409,026 $ 2,935 $ (10,083) $ 401,878 Trust preferred securities 259 522 — 781 Total $ 409,285 $ 3,457 $ (10,083) $ 402,659 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
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 2,821 2,733 Total $ 2,821 $ 2,733 Held-to-maturity: Due within 5 years $ 8 $ 8 Due after 5 years through 10 years 79 80 Due after 10 years 409,198 402,571 Total $ 409,285 $ 402,659
Schedule of realized gains and losses and proceeds from sales of securities held to maturity	Three Months Ended March 31, (Dollars in thousands) 2018 2017 Proceeds from sales $ — $ 1,589 Gross gains — 95 Gross losses — —
Summary of investment securities in an unrealized loss position	Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Number of Unrealized Description of securities Fair Value Losses Fair Value Losses Securities Fair Value Losses (Dollars in thousands) March 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,733 $ 88 $ — $ — 1 $ 2,733 $ 88 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 144,421 $ 2,618 $ 133,086 $ 7,465 78 $ 277,507 $ 10,083 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
Cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold	Three Months Ended March 31, (Dollars in thousands) 2018 2017 Balance at the beginning of the period $ 2,403 $ 2,403 Credit losses on debt securities for which other-than-temporary impairment was not previously recognized — — Credit losses on debt securities which were sold — — Balance at the end of the period $ 2,403 $ 2,403

Loans Receivable and Allowanc27

Loans Receivable and Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2018
Loans Receivable and Allowance for Loan Losses
Schedule of components of loans receivable	March 31, December 31, (Dollars in thousands) 2018 2017 Real estate loans: First mortgages: One- to four-family residential $ 1,459,221 $ 1,444,625 Multi-family residential 10,703 10,799 Construction, commercial and other 23,601 21,787 Home equity loans and lines of credit 12,876 12,882 Total real estate loans 1,506,401 1,490,093 Other loans: Loans on deposit accounts 227 274 Consumer and other loans 4,160 4,340 Total other loans 4,387 4,614 Less: Net unearned fees and discounts (3,176) (3,188) Allowance for loan losses (2,554) (2,548) Total unearned fees, discounts and allowance for loan losses (5,730) (5,736) Loans receivable, net $ 1,505,058 $ 1,488,971
Schedule of activity in allowance for loan losses by portfolio segment	Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended March 31, 2018: Balance, beginning of period $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 Provision (reversal of provision) for loan losses (1) (9) — (3) 22 9 1,720 530 1 52 254 2,557 Charge-offs — — — (5) — (5) Recoveries — — — 2 — 2 Net charge-offs — — — (3) — (3) Balance, end of period $ 1,720 $ 530 $ 1 $ 49 $ 254 $ 2,554 Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended March 31, 2017: Balance, beginning of period $ 1,594 $ 519 $ 2 $ 115 $ 222 $ 2,452 Provision (reversal of provision) for loan losses (11) 45 (1) 23 15 71 1,583 564 1 138 237 2,523 Charge-offs (11) — — (5) — (16) Recoveries 31 — — 2 — 33 Net recoveries (charge-offs) 20 — — (3) — 17 Balance, end of period $ 1,603 $ 564 $ 1 $ 135 $ 237 $
Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment and based on impairment method	Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals March 31, 2018: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,720 530 1 49 254 2,554 Total ending allowance balance $ 1,720 $ 530 $ 1 $ 49 $ 254 $ 2,554 Loans: Ending loan balance: Individually evaluated for impairment $ 3,370 $ — $ 160 $ — $ — $ 3,530 Collectively evaluated for impairment 1,463,444 23,518 12,720 4,400 — 1,504,082 Total ending loan balance $ 1,466,814 $ 23,518 $ 12,880 $ 4,400 $ — $ 1,507,612 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
Schedule of balance of impaired loans individually evaluated for impairment by class of loans	Unpaid Recorded Principal (Dollars in thousands) Investment Balance March 31, 2018: With no related allowance recorded: One- to four-family residential mortgages $ 3,370 $ 3,952 Home equity loans and lines of credit 160 227 Total $ 3,530 $ 4,179 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
Schedule of average recorded investment and interest income recognized on impaired loans by class of loans	For the Three Months Ended March 31, Average Interest Recorded Income (Dollars in thousands) Investment Recognized 2018: With no related allowance recorded: One- to four-family residential mortgages $ 3,393 $ 13 Home equity loans and lines of credit 162 — Total $ 3,555 $ 13 2017: With no related allowance recorded: One- to four-family residential mortgages $ 4,525 $ 17 Home equity loans and lines of credit 183 — Total $ 4,708 $ 17
Schedule of aging of loans and accrual status by class of loans	Loans More Than 90 Days 30 - 59 60 - 89 90 Days or Past Due Days Past Days Past Greater Total Past Loans Not Total Nonaccrual and Still (Dollars in thousands) Due Due Past Due Due Past Due Loans Loans Accruing March 31, 2018: One- to four-family residential mortgages $ 680 $ — $ 976 $ 1,656 $ 1,454,472 $ 1,456,128 $ 2,459 $ — Multi-family residential mortgages — — — — 10,686 10,686 — — Construction, commercial and other mortgages — — — — 23,518 23,518 — — Home equity loans and lines of credit — — 41 41 12,839 12,880 160 — Loans on deposit accounts — — — — 227 227 — — Consumer and other 14 3 — 17 4,156 4,173 — — Total $ 694 $ 3 $ 1,017 $ 1,714 $ 1,505,898 $ 1,507,612 $ 2,619 $ — 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 $ —
Summary of troubled debt restructurings by class of loan	Number of Accrual Number of Nonaccrual (Dollars in thousands) Loans Status Loans Status Total March 31, 2018: One- to four-family residential mortgages 4 $ 911 5 $ 1,051 $ 1,962 Home equity loans and lines of credit — — 1 89 89 Total 4 $ 911 6 $ 1,140 $ 2,051 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

Securities Sold Under Agreeme28

Securities Sold Under Agreements to Repurchase (Tables)	3 Months Ended
	Mar. 31, 2018
Securities Sold Under Agreements to Repurchase
Summary of securities sold under agreements to repurchase	March 31, 2018 December 31, 2017 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ 20,000 1.66 % $ — — % Over 1 year to 2 years 10,000 1.65 25,000 1.66 Over 2 years to 3 years — — 5,000 1.65 Total $ 30,000 1.66 % $ 30,000 1.66 %
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 $ 38,712 $ 37,994 $ 30,000 $ 8,712 14

Offsetting of Financial Liabi29

Offsetting of Financial Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
Offsetting of Financial Liabilities
Schedule of securities sold under agreements to repurchase subject to conditional right of offset	Net Amount of Gross Amount Not Offset in the Gross Amount Gross Amount Liabilities Balance Sheet of Recognized Offset in the Presented in the Financial Cash Collateral (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Pledged Net Amount March 31, 2018: Securities sold under agreements to repurchase $ 30,000 $ — $ 30,000 $ 30,000 $ — $ — December 31, 2017: Securities sold under agreements to repurchase $ 30,000 $ — $ 30,000 $ 30,000 $ — $ —

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2018
Employee Benefit Plans
Schedule of components of net periodic benefit cost	SERP Three Months Ended March 31, (Dollars in thousands) 2018 2017 Net periodic benefit cost for the period: Service cost $ 20 $ 10 Interest cost 37 35 Expected return on plan assets — — Amortization of prior service cost — — Recognized actuarial loss — — Recognized curtailment loss — — Net periodic benefit cost $ 57 $ 45

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	3 Months Ended
	Mar. 31, 2018
Employee Stock Ownership Plan
Schedule of shares held by the ESOP trust	March 31, December 31, 2018 2017 Allocated shares 410,145 397,912 Unearned shares 526,028 538,261 Total ESOP shares 936,173 936,173 Fair value of unearned shares, in thousands $ 15,602 $ 16,616

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Schedule of compensation expense and related tax benefit for all share-based awards	Three Months Ended March 31, (In thousands) 2018 2017 Compensation expense $ 67 $ 9 Income tax benefit 18 4
Schedule of stock option activity	Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2017 411,543 $ 17.48 2.73 $ 5,509 Granted — — — — Exercised 18,008 17.36 — 237 Forfeited — — — — Expired — — — — Options outstanding at March 31, 2018 393,535 $ 17.49 2.48 $ 4,789 Options outstanding at December 31, 2016 706,430 $ 17.43 3.70 $ 10,884 Granted — — — — Exercised 54,976 17.36 — 874 Forfeited — — — — Expired — — — — Options outstanding at March 31, 2017 651,454 $ 17.44 3.46 $ 8,945 Options vested and exercisable at March 31, 2018 $ $ 4,785
Summary of certain stock option activity	For the Three Months Ended March 31, (In thousands) 2018 2017 Intrinsic value of stock options exercised $ 237 $ 874 Proceeds received from stock options exercised 313 955 Tax benefits realized from stock options exercised 42 307 Total fair value of stock options that vested — —
Restricted Stock
Schedule of restricted stock award activity	Weighted Average Grant Restricted Date Fair Stock Value Nonvested at December 31, 2017 10,804 $ 29.16 Granted 10,019 30.73 Vested — — Forfeited — — Nonvested at March 31, 2018 20,823 $ 29.92 Nonvested at December 31, 2016 2,400 $ 26.23 Granted — — Vested — — Forfeited — — Nonvested at March 31, 2017 2,400 $ 26.23
Restricted Stock Units Based on a Performance Condition
Schedule of restricted stock award activity	Performance- Based Restricted Stock Units Weighted Based on a Average Grant Performance Date Fair Condition Value Nonvested at December 31, 2017 11,525 $ 29.53 Granted 12,018 30.73 Vested — — Forfeited — — Nonvested at March 31, 2018 23,543 $ 30.14
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, 2017 2,881 $ 24.44 Granted 3,005 28.32 Vested — — Forfeited — — Nonvested at March 31, 2018 5,886 $ 26.42

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share
Schedule of information used to compute basic and diluted earnings per share	Three Months Ended (Dollars in thousands, except per share data) 2018 2017 Net income $ 4,820 $ 4,321 Income allocated to participating securities (15) (1) Net income available to common shareholders $ 4,805 $ 4,320 Weighted-average number of shares used in: Basic earnings per share 9,284,496 9,215,142 Dilutive common stock equivalents: Stock options and restricted stock units 199,681 230,847 Diluted earnings per share 9,484,177 9,445,989 Net income per common share, basic $ 0.52 $ 0.47 Net income per common share, diluted $ 0.51 $ 0.46

Other Comprehensive Income an34

Other Comprehensive Income and Loss (Tables)	3 Months Ended
	Mar. 31, 2018
Other Comprehensive Income and Loss
Schedule of changes in components of accumulated other comprehensive income and loss, net of taxes	Noncredit Related Loss on Unfunded Trust Unrealized Pension Preferred Loss on (Dollars in thousands) Liability Securities Securities Total Three months ended March 31, 2018 Balances at beginning of period $ 5,657 $ — $ 37 $ 5,694 Other comprehensive loss, net of taxes — — 49 49 Amounts reclassified from accumulated other comprehensive loss 1,126 — 9 1,135 Net current period other comprehensive loss 1,126 — 58 1,184 Balances at end of period $ 6,783 $ — $ 95 $ 6,878 Three months ended March 31, 2017 Balances at beginning of period $ 5,284 $ — $ 32 $ 5,316 Other comprehensive income, net of taxes — — (2) (2) Net current period other comprehensive income — — (2) (2) Balances at end of period $ 5,284 $ — $ 30 $ 5,314
Schedule of tax effect on each component of accumulated other comprehensive loss	Three Months Ended March 31, 2018 2017 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized loss on securities $ 66 $ (17) $ 49 $ (3) $ 1 $ (2) Total $ 66 $ (17) $ 49 $ (3) $ 1 $ (2)

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue Recognition
Reconciliation of revenue from contracts with customers and other revenue reported in line items	Service Fees on Loan and Deposit (Dollars in thousands) Accounts Other Total March 31, 2018: Revenue from contracts with customers $ 320 $ 41 $ 361 Other revenue 95 28 123 Total $ 415 $ 69 $ 484 March 31, 2017: Revenue from contracts with customers $ 376 $ 54 $ 430 Other revenue 180 28 208 Total $ 556 $ 82 $ 638

Fair Value of Financial Instr36

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value of Financial Instruments
Schedule of estimated fair values of financial instruments	Carrying Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 March 31, 2018 Assets Cash and cash equivalents $ 65,112 $ 65,112 $ 65,112 $ — $ — Investment securities available for sale 2,733 2,733 — 2,733 — Investment securities held to maturity 409,285 402,659 — 401,878 781 Loans receivable, net 1,505,058 1,486,100 — — 1,486,100 FHLB stock 6,325 6,325 — 6,325 — FRB stock 3,106 3,106 — 3,106 — Accrued interest receivable 5,183 5,183 7 1,108 4,068 Interest rate contracts 8 8 — 8 — Liabilities Deposits 1,665,172 1,662,008 — 1,282,798 379,210 Advances from the Federal Home Loan Bank 98,000 97,320 — 97,320 — Securities sold under agreements to repurchase 30,000 29,716 — 29,716 — Accrued interest payable 981 981 — 116 865 Interest rate contracts 8 8 — 8 — 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 —
Schedule of assets and liabilities measured at fair value on a recurring basis	(Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2018 Interest rate contracts — assets $ — $ 8 $ — $ 8 Interest rate contracts — liabilities — (8) — (8) Available-for-sale investments — 2,733 — 2,733 December 31, 2017 Interest rate contracts — assets $ — $ 8 $ — $ 8 Interest rate contracts — liabilities — (8) — (8) Available-for-sale investments — 2,851 — 2,851
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)

Organization (Details)

Organization (Details) $ in Millions	Dec. 31, 2017USD ($)
Organization
Liquidation account balance	$ 11

Recently Issued Accounting Pr38

Recently Issued Accounting Pronouncements (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Summary of Significant Accounting Policies
Reclassification of deferred taxes from accumulated other comprehensive income to retained earnings	$ 1.1

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents
Cash and due from banks	$ 8,779	$ 9,114
Interest-earning deposits in other banks	56,333	22,975
Cash and cash equivalents	$ 65,112	$ 32,089	$ 103,123	$ 61,273

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Fair Values of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale:
Amortized Cost	$ 2,821	$ 2,870
Gross Unrealized Losses	(88)	(19)
Estimated Fair Value	2,733	2,851
U.S. government-sponsored mortgage-backed securities
Available-for-sale:
Amortized Cost	2,821	2,870
Gross Unrealized Losses	(88)	(19)
Estimated Fair Value	$ 2,733	$ 2,851

Investment Securities - Amort41

Investment Securities - Amortized Cost and Fair Values of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Held-to-maturity:
Amortized Cost	$ 409,285	$ 404,792
Gross Unrealized Gains	3,457	6,474
Gross Unrealized Losses	(10,083)	(4,603)
Estimated Fair Value	402,659	406,663
U.S. government-sponsored mortgage-backed securities
Held-to-maturity:
Amortized Cost	409,026	404,365
Gross Unrealized Gains	2,935	6,056
Gross Unrealized Losses	(10,083)	(4,603)
Estimated Fair Value	401,878	405,818
Trust preferred securities
Held-to-maturity:
Amortized Cost	259	427
Gross Unrealized Gains	522	418
Estimated Fair Value	$ 781	$ 845

Investment Securities - Maturit

Investment Securities - Maturity Schedule of Available-for-Sale Securities (Details) $ in Thousands	Mar. 31, 2018USD ($)
Amortized Cost
Due after 10 years	$ 2,821
Amortized Cost	2,821
Estimated Fair Value
Due after 10 years	2,733
Estimated Fair Value	$ 2,733

Investment Securities - Matur43

Investment Securities - Maturity Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Held-to-maturity, Amortized Cost
Due within 5 years	$ 8
Due after 5 years through 10 years	79
Due after 10 years	409,198
Amortized Cost	409,285	$ 404,792
Held-to-maturity, Estimated Fair Value
Due within 5 years	8
Due after 5 years through 10 years	80
Due after 10 years	402,571
Estimated Fair Value	$ 402,659	$ 406,663

Investment Securities - Realize

Investment Securities - Realized Gains and Losses and Proceeds from Sales (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Realized gains and losses and the proceeds from sales of securities available for sale, held to maturity and trading
Proceeds from sales		$ 1,589
U.S. government-sponsored mortgage-backed securities | Held-to-maturity debt securities
Realized gains and losses and the proceeds from sales of securities available for sale, held to maturity and trading
Proceeds from sales		1,589
Gross gains		$ 95
U.S. government-sponsored mortgage-backed securities | Held-to-maturity debt securities | Minimum
Realized gains and losses and the proceeds from sales of securities available for sale, held to maturity and trading
Portion of outstanding purchased principal already collected	85.00%	85.00%

Investment Securities - Securit

Investment Securities - Securities Pledged (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Pledged investment securities
Investment securities pledged to secure public deposit, securities sold under agreement to repurchase and transaction clearing accounts	$ 324.1	$ 287.2

Investment Securities _ Availab

Investment Securities – Available-for-Sale Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands	Mar. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months Fair Value	$ 2,733	$ 2,851
Less Than 12 Months Unrealized Losses	$ 88	$ 19
Number of Securities | security	1	1
Total Fair Value	$ 2,733	$ 2,851
Total Unrealized Losses	$ 88	$ 19

Investment Securities - Held-to

Investment Securities - Held-to-Maturity Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands	Mar. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
Investment Securities
Less Than 12 Months Fair Value	$ 144,421	$ 41,163
Less Than 12 Months Unrealized Losses	2,618	299
12 Months or Longer Fair Value	133,086	140,200
12 Months or Longer Unrealized Losses	$ 7,465	$ 4,304
Total Number of Securities | security	78	49
Total Fair Value	$ 277,507	$ 181,363
Total Unrealized Losses	$ 10,083	$ 4,603

Investment Securities - Trust P

Investment Securities - Trust Preferred Securities (Details)	75 Months Ended	123 Months Ended
	Mar. 31, 2018USD ($)Transactionsecurity	Mar. 31, 2018USD ($)security	Dec. 31, 2017USD ($)
Investment Securities
Amortized cost	$ 409,285,000	$ 409,285,000	$ 404,792,000
Trust preferred securities
Investment Securities
Amortized cost	$ 259,000	$ 259,000	$ 427,000
Number of market transactions of the security | Transaction	6
Number of new security pools | security		0
Trust preferred securities | PreTSL XXIII
Investment Securities
Number of securities owned | security	1	1
Amortized cost	$ 259,000	$ 259,000
Remaining cost basis	259,000	259,000
Accumulated other comprehensive loss	$ 0	$ 0

Investment Securities - Cumulat

Investment Securities - Cumulative Roll Forward of Credit Losses Recognized in Earnings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold
Balance at the beginning of the period	$ 2,403	$ 2,403
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	0	0
Balance at the end of the period	$ 2,403	$ 2,403

Loans Receivable and Allowanc50

Loans Receivable and Allowance for Loan Losses - Components (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Real estate loans:
Total real estate loans	$ 1,506,401	$ 1,490,093
Other loans:
Total other loans	4,387	4,614
Less: Net unearned fees and discounts	(3,176)	(3,188)
Less: Allowance for loan losses	(2,554)	(2,548)	$ (2,540)	$ (2,452)
Total unearned fees, discounts and allowance for loan losses	(5,730)	(5,736)
Loans receivable, net	1,505,058	1,488,971
One- to four-family residential
Real estate loans:
Total real estate loans	1,459,221	1,444,625
Multi-family residential
Real estate loans:
Total real estate loans	10,703	10,799
Construction, Commercial and Other Mortgage Loans
Real estate loans:
Total real estate loans	23,601	21,787
Other loans:
Less: Allowance for loan losses	(530)	(539)	(564)	(519)
Home Equity Loans and Lines of Credit
Real estate loans:
Total real estate loans	12,876	12,882
Other loans:
Less: Allowance for loan losses	(1)	(1)	$ (1)	$ (2)
Loans on Deposit Accounts
Other loans:
Total other loans	227	274
Consumer and Other
Other loans:
Total other loans	$ 4,160	$ 4,340

Loans Receivable and Allowanc51

Loans Receivable and Allowance for Loan Losses - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Activity in allowance for loan losses
Balance, beginning of period	$ 2,548	$ 2,452
Provision (reversal of provision) for loan losses	9	71
Allowance for loan losses on loans receivable after provision (reversal of allowance)	2,557	2,523
Charge-offs	(5)	(16)
Recoveries	2	33
Net recoveries (charge-offs)	(3)	17
Balance, end of period	2,554	2,540
Residential Mortgage
Activity in allowance for loan losses
Balance, beginning of period	1,721	1,594
Provision (reversal of provision) for loan losses	(1)	(11)
Allowance for loan losses on loans receivable after provision (reversal of allowance)	1,720	1,583
Charge-offs		(11)
Recoveries		31
Net recoveries (charge-offs)		20
Balance, end of period	1,720	1,603
Construction, Commercial and Other Mortgage Loans
Activity in allowance for loan losses
Balance, beginning of period	539	519
Provision (reversal of provision) for loan losses	(9)	45
Allowance for loan losses on loans receivable after provision (reversal of allowance)	530	564
Balance, end of period	530	564
Home Equity Loans and Lines of Credit
Activity in allowance for loan losses
Balance, beginning of period	1	2
Provision (reversal of provision) for loan losses		(1)
Allowance for loan losses on loans receivable after provision (reversal of allowance)	1	1
Balance, end of period	1	1
Consumer and other loans
Activity in allowance for loan losses
Balance, beginning of period	55	115
Provision (reversal of provision) for loan losses	(3)	23
Allowance for loan losses on loans receivable after provision (reversal of allowance)	52	138
Charge-offs	(5)	(5)
Recoveries	2	2
Net recoveries (charge-offs)	(3)	(3)
Balance, end of period	49	135
Unallocated
Activity in allowance for loan losses
Balance, beginning of period	232	222
Provision (reversal of provision) for loan losses	22	15
Allowance for loan losses on loans receivable after provision (reversal of allowance)	254	237
Balance, end of period	$ 254	$ 237

Loans Receivable and Allowanc52

Loans Receivable and Allowance for Loan Losses - Balance in Allowance for Loan Losses and Recorded Investment (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Allowance for loan losses:
Collectively evaluated for impairment	$ 2,554	$ 2,548
Total ending allowance balance	2,554	2,548	$ 2,540	$ 2,452
Loans:
Individually evaluated for impairment	3,530	5,142
Collectively evaluated for impairment	1,504,082	1,486,377
Total ending loan balance	1,507,612	1,491,519
Residential Mortgage
Allowance for loan losses:
Collectively evaluated for impairment	1,720	1,721
Total ending allowance balance	1,720	1,721	1,603	1,594
Loans:
Individually evaluated for impairment	3,370	4,977
Collectively evaluated for impairment	1,463,444	1,447,326
Total ending loan balance	1,466,814	1,452,303
Construction, Commercial and Other Mortgage Loans
Allowance for loan losses:
Collectively evaluated for impairment	530	539
Total ending allowance balance	530	539	564	519
Loans:
Collectively evaluated for impairment	23,518	21,701
Total ending loan balance	23,518	21,701
Home Equity Loans and Lines of Credit
Allowance for loan losses:
Collectively evaluated for impairment	1	1
Total ending allowance balance	1	1	1	2
Loans:
Individually evaluated for impairment	160	165
Collectively evaluated for impairment	12,720	12,722
Total ending loan balance	12,880	12,887
Consumer and other loans
Allowance for loan losses:
Collectively evaluated for impairment	49	55
Total ending allowance balance	49	55	135	115
Loans:
Collectively evaluated for impairment	4,400	4,628
Total ending loan balance	4,400	4,628
Unallocated
Allowance for loan losses:
Collectively evaluated for impairment	254	232
Total ending allowance balance	$ 254	$ 232	$ 237	$ 222

Loans Receivable and Allowanc53

Loans Receivable and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Impaired loans
Average Recorded Investment	$ 3,555	$ 4,708
Interest Income Recognized	13	17
One- to four-family residential
Impaired loans
Average Recorded Investment	3,393	4,525
Interest Income Recognized	13	17
Home Equity Loans and Lines of Credit
Impaired loans
Average Recorded Investment	162	$ 183
Individually Evaluated for Impairment
Impaired loans
Recorded Investment	3,530		$ 5,142
Unpaid Principal Balance	4,179		6,125
Loans individually evaluated for impairment with a related allowance for loan loss	0		0
Individually Evaluated for Impairment | One- to four-family residential
Impaired loans
Recorded Investment	3,370		4,977
Unpaid Principal Balance	3,952		5,897
Individually Evaluated for Impairment | Home Equity Loans and Lines of Credit
Impaired loans
Recorded Investment	160		165
Unpaid Principal Balance	$ 227		$ 228

Loans Receivable and Allowanc54

Loans Receivable and Allowance for Loan Losses - Delinquent and Nonaccrual Loans (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)loan	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Nonaccrual Loans	$ 2,619,000		$ 4,227,000
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	13		17
Nonaccrual Loans	$ 2,600,000		$ 4,200,000
Interest collected on nonaccrual loans recorded as a reduction of principal	30,000	$ 38,000
Non accrual loans, additional interest income that would have been recognized had the loans been accruing interest	$ 45,000	$ 59,000

Loans Receivable and Allowanc55

Loans Receivable and Allowance for Loan Losses - Aging of Loans and Accrual Status (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 1,714	$ 2,841
Loans Not Past Due	1,505,898	1,488,678
Total ending loan balance	1,507,612	1,491,519
Nonaccrual Loans	2,619	4,227
One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,656	2,796
Loans Not Past Due	1,454,472	1,438,725
Total ending loan balance	1,456,128	1,441,521
Nonaccrual Loans	2,459	4,062
Multi-family residential
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	10,686	10,782
Total ending loan balance	10,686	10,782
Construction, Commercial and Other Mortgage Loans
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	23,518	21,701
Total ending loan balance	23,518	21,701
Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	41	41
Loans Not Past Due	12,839	12,846
Total ending loan balance	12,880	12,887
Nonaccrual Loans	160	165
Loans on Deposit Accounts
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	227	274
Total ending loan balance	227	274
Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	17	4
Loans Not Past Due	4,156	4,350
Total ending loan balance	4,173	4,354
30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	694	4
30 - 59 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	680
30 - 59 Days Past Due | Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	14	4
60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3	1,207
60 - 89 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due		1,207
60 - 89 Days Past Due | Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3
90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,017	1,630
90 Days or Greater Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	976	1,589
90 Days or Greater Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 41	$ 41

Loans Receivable and Allowanc56

Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)loan	Mar. 31, 2017loan	Mar. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
Troubled debt restructurings
Number of loans subsequently defaulted | loan			0
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 2,051,000		$ 2,051,000	$ 2,081,000
Real estate owned	$ 0		$ 0	$ 0
Accruing interest
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	4		4	4
Loans modified by troubled debt restructurings considered impaired	$ 911,000		$ 911,000	$ 915,000
Non Accrual Loans
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	6		6	6
Loans modified by troubled debt restructurings considered impaired	$ 1,140,000		$ 1,140,000	$ 1,166,000
Loans modified in troubled debt restructuring
Troubled debt restructurings
Number of Loans | loan	0	0
Additional disclosures
Commitments to lend additional funds to borrowers	$ 0		$ 0
Nonperforming Financing Receivable | Non Accrual Loans | More than 149 days past due
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	1		1	1
Loans modified by troubled debt restructurings considered impaired	$ 149,000		$ 149,000	$ 149,000
One- to four-family residential
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 1,962,000		$ 1,962,000	$ 1,989,000
Mortgage loans in process of foreclosure, number of contracts | loan	2		2	3
Mortgage loans in process of foreclosure, total value	$ 585,000		$ 585,000	$ 650,000
One- to four-family residential | Accruing interest
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	4		4	4
Loans modified by troubled debt restructurings considered impaired	$ 911,000		$ 911,000	$ 915,000
One- to four-family residential | Non Accrual Loans
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	5		5	5
Loans modified by troubled debt restructurings considered impaired	$ 1,051,000		$ 1,051,000	$ 1,074,000
Home Equity Loans and Lines of Credit
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 89,000		$ 89,000	$ 92,000
Mortgage loans in process of foreclosure, number of contracts | loan	1		1	1
Mortgage loans in process of foreclosure, total value	$ 41,000		$ 41,000	$ 41,000
Home Equity Loans and Lines of Credit | Non Accrual Loans
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	1		1	1
Loans modified by troubled debt restructurings considered impaired	$ 89,000		$ 89,000	$ 92,000

Loans Receivable and Allowanc57

Loans Receivable and Allowance for Loan Losses - Collateral, Sales, Serviced for Others, Directors and Executive Officers (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Loans serviced for others	$ 33,700,000		$ 35,500,000
Loans serviced for others, securitization for which the company continues to hold the related mortgage-backed securities	1,500,000		$ 1,500,000
Loans serviced for others, amount of contractually specified servicing fees earned	$ 23,000	$ 28,000
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	$ 4,500,000	8,000,000
Residential mortgage loans sold, recognized gains	$ 43,000	$ 63,000
Number of loans | loan			1
Residential mortgage loans held for sale			$ 403,000

Securities Sold Under Agreeme58

Securities Sold Under Agreements to Repurchase - Summary of Repurchase Liability by Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Securities sold under agreements to repurchase
Repurchase Liability	$ 30,000	$ 30,000
Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.66%	1.66%
1 year or less
Securities sold under agreements to repurchase
Repurchase Liability	$ 20,000
1 year or less | Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.66%
Over 1 year to 2 years
Securities sold under agreements to repurchase
Repurchase Liability	$ 10,000	$ 25,000
Over 1 year to 2 years | Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.65%	1.66%
Over 2 years to 3 years
Securities sold under agreements to repurchase
Repurchase Liability		$ 5,000
Over 2 years to 3 years | Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)		1.65%

Securities Sold Under Agreeme59

Securities Sold Under Agreements to Repurchase - Summary of Securities Pledged (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
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	$ 38,712
Fair Value of Securities	37,994
Repurchase Liability	30,000
Amount at Risk	$ 8,712
Weighted Average Months to Maturity	14 months

Offsetting of Financial Liabi60

Offsetting of Financial Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Securities sold under agreements to repurchase
Gross Amount of Recognized Liabilities	$ 30,000	$ 30,000
Net Amount of Liabilities Presented in the Balance Sheet	30,000	30,000
Gross amount not offset in the balance sheet
Financial Instruments	$ 30,000	$ 30,000

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Pension Plan | Minimum
Net periodic benefit cost for the year:
Requisite service period for receiving benefits under the plan	1 year
Supplemental Employee Retirement Plan (SERP)
Net periodic benefit cost for the year:
Service cost	$ 20	$ 10
Interest cost	37	35
Net periodic benefit cost	$ 57	$ 45

Employee Stock Ownership Plan -

Employee Stock Ownership Plan - Loan, Expense and Shares (Details) - USD ($)	Jul. 10, 2009	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Employee Stock Ownership Plan
ESOP expense		$ 376,000	$ 395,000
ESOP
Employee Stock Ownership Plan
Amount borrowed from employer	$ 9,800,000
Shares purchased	978,650
Percentage of shares issued in initial public offering	8.00%
Employee stock ownership plan, price per share of shares acquired in initial public offering (in dollars per share)	$ 10
Term of loan		20 years
ESOP expense		$ 376,000	$ 321,000
Allocated shares		410,145		397,912
Unearned shares		526,028		538,261
Total ESOP shares		936,173		936,173
Fair value of unearned shares, in thousands		$ 15,602,000		$ 16,616,000
ESOP | Prime rate
Employee Stock Ownership Plan
Variable interest rate		Wall Street Journal Prime Rate

Employee Stock Ownership Plan63

Employee Stock Ownership Plan - Nonqualified ESOP Restoration Plan (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
ESOP restoration | Certain executives
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits
Accrued benefits	$ 95,000	$ 117,000

Share-Based Compensation - Plan

Share-Based Compensation - Plan Provisions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-Based Compensation
Compensation expense	$ 67	$ 9
Income tax benefit	$ 18	$ 4
2010 Equity Incentive Plan
Share-Based Compensation
Number of shares authorized	1,862,637
2010 Equity Incentive Plan | Vesting period one
Share-Based Compensation
Unrecognized compensation costs, period of recognition	3 years
Vesting period	3 years
2010 Equity Incentive Plan | Vesting period two
Share-Based Compensation
Unrecognized compensation costs, period of recognition	5 years
Vesting period	5 years
2010 Equity Incentive Plan | Vesting period three
Share-Based Compensation
Unrecognized compensation costs, period of recognition	6 years
Vesting period	6 years

Share-Based Compensation - Stoc

Share-Based Compensation - Stock Option Activity (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Common Stock
Stock option activity
Exercised (in shares)	18,008	54,976
Stock option activity
Shares of common stock issued in exchange for stock options and common shares	7,772
Common shares exchanged	10,236
Stock Options
Stock option activity
Balance at beginning of period (in shares)	411,543	706,430	706,430
Exercised (in shares)	18,008	54,976
Balance at end of period (in shares)	393,535	651,454	411,543	706,430
Options vested and exercisable (in shares)	392,335
Weighted Average Exercise Price
Balance at beginning of period (in dollars per share)	$ 17.48	$ 17.43	$ 17.43
Exercised (in dollars per share)	17.36	17.36
Balance at end of period (in dollars per share)	17.49	$ 17.44	$ 17.48	$ 17.43
Options vested and exercisable (in dollars per share)	$ 17.46
Remaining Contractual Life
Options outstanding	2 years 5 months 23 days	3 years 5 months 16 days	2 years 8 months 23 days	3 years 8 months 12 days
Options vested and exercisable	2 years 5 months 19 days
Aggregate Intrinsic Value
Beginning of period	$ 5,509,000	$ 10,884,000	$ 10,884,000
Exercised	237,000	874,000
End of period	4,789,000	8,945,000	$ 5,509,000	$ 10,884,000
Options vested and exercisable	4,785,000
Stock option activity
Intrinsic value of stock options exercised	237,000	874,000
Proceeds received from stock options exercised	313,000	955,000
Tax benefits realized from stock options exercised	42,000	$ 307,000
Unrecognized compensation costs	$ 2,000
Unrecognized compensation costs, period of recognition	3 years
Stock Options | Common Stock
Stock option activity
Exercised (in shares)	18,008

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Awards (Details) - USD ($)	Mar. 08, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Restricted Stock
Restricted Stock Awards
Non-vested at beginning of period (in shares)		10,804	2,400
Granted (in shares)		10,019	0
Non-vested at end of period (in shares)		20,823	2,400
Weighted Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 29.16	$ 26.23
Granted (in dollars per share)		30.73	0
Non-vested at end of period (in dollars per share)		$ 29.92	$ 26.23
Unrecognized compensation
Vesting period		3 years
Unrecognized compensation costs		$ 516,000
Restricted Stock Units Based on a Performance Condition
Restricted Stock Awards
Non-vested at beginning of period (in shares)		11,525
Granted (in shares)		12,018
Non-vested at end of period (in shares)		23,543
Weighted Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 29.53
Granted (in dollars per share)		30.73
Non-vested at end of period (in dollars per share)		$ 30.14
Unrecognized compensation
Unrecognized compensation costs		$ 390,000
Unrecognized compensation costs, period of recognition		3 years
Restricted Stock Units Based on a Performance Condition | Minimum
Unrecognized compensation
Shares vesting as a percentage of target		0.00%
Restricted Stock Units Based on a Performance Condition | Maximum
Unrecognized compensation
Shares vesting as a percentage of target		150.00%
Restricted Stock Units Based on a Market Condition
Restricted Stock Awards
Non-vested at beginning of period (in shares)		2,881
Granted (in shares)		3,005
Non-vested at end of period (in shares)		5,886
Weighted Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 24.44
Granted (in dollars per share)		28.32
Non-vested at end of period (in dollars per share)		$ 26.42
Unrecognized compensation
Unrecognized compensation costs		$ 89,000
Unrecognized compensation costs, period of recognition		3 years
Assumptions used in the Monte Carlo valuation of PRSUs
Term used for risk-free rate and historical volatility	2 years 9 months 26 days
Risk-free interest rate (as a percent)	2.39%
Closing stock price (in dollars per share)	$ 30.73			$ 30.87
Annualized volatility (as a percent)	16.60%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share
Net income	$ 4,820	$ 4,321
Income allotted to participating securities	(15)	(1)
Net income available to common shareholders	$ 4,805	$ 4,320
Weighted-average number of shares used in:
Basic earnings per share (in shares)	9,284,496	9,215,142
Dilutive common stock equivalents:
Stock options and restricted stock units (in shares)	199,681	230,847
Diluted earnings per share (in shares)	9,484,177	9,445,989
Net income per common share, basic (in dollars per share)	$ 0.52	$ 0.47
Net income per common share, diluted (in dollars per share)	$ 0.51	$ 0.46

Other Comprehensive Income an68

Other Comprehensive Income and Loss - Changes in Components of Accumulated Other Comprehensive Income and Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	$ (234,854)	$ (229,786)
Other comprehensive loss (income), net of taxes	49	(2)
Net current period other comprehensive loss (income)		(2)
Balances at end of period	(232,372)	(232,624)
Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	5,694	5,316
Other comprehensive loss (income), net of taxes	49	(2)
Amounts reclassified from accumulated other comprehensive loss	1,135
Net current period other comprehensive loss (income)	1,184	(2)
Balances at end of period	6,878	5,314
Unfunded Pension Liability
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	5,657	5,284
Amounts reclassified from accumulated other comprehensive loss	1,126
Net current period other comprehensive loss (income)	1,126
Balances at end of period	6,783	5,284
Unrealized Loss on Securities
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	37	32
Other comprehensive loss (income), net of taxes	49	(2)
Amounts reclassified from accumulated other comprehensive loss	9
Net current period other comprehensive loss (income)	58	(2)
Balances at end of period	$ 95	$ 30

Other Comprehensive Income an69

Other Comprehensive Income and Loss - Tax Effect on Each Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Tax effect on each component of other comprehensive loss
Pretax amount	$ 66	$ (3)
Tax	(17)	1
After Tax Amount	49	(2)
Accumulated Other Comprehensive Income (Loss)
Tax effect on each component of other comprehensive loss
After Tax Amount	49	(2)
Unrealized Loss on Securities
Tax effect on each component of other comprehensive loss
Pretax amount	66	(3)
Tax	(17)	1
After Tax Amount	$ 49	$ (2)

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues
Revenue from contracts with customers	$ 361	$ 430
Other revenue	123	208
Total	484	638
Service Fees on Loan and Deposit Accounts
Revenues
Revenue from contracts with customers	320	376
Other revenue	95	180
Total	415	556
Other
Revenues
Revenue from contracts with customers	41	54
Other revenue	28	28
Total	$ 69	$ 82

Fair Value of Financial Instr71

Fair Value of Financial Instruments - Estimated Fair Values (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Investment securities available for sale	$ 2,733	$ 2,851
Investment securities held to maturity	402,659	406,663
Carrying Amount
Assets
Cash and cash equivalents	65,112	32,089
Investment securities available for sale	2,733	2,851
Investment securities held to maturity	409,285	404,792
Loans held for sale		403
Loans receivable, net	1,505,058	1,488,971
FHLB stock	6,325	6,541
FRB stock	3,106	3,103
Accrued interest receivable	5,183	5,142
Interest rate contracts	8	8
Liabilities
Deposits	1,665,172	1,597,295
Advances from the Federal Home Loan Bank	98,000	107,200
Securities sold under agreements to repurchase	30,000	30,000
Accrued interest payable	981	575
Interest rate contracts	8	8
Estimated Fair Value
Assets
Cash and cash equivalents	65,112	32,089
Investment securities available for sale	2,733	2,851
Investment securities held to maturity	402,659	406,663
Loans held for sale		414
Loans receivable, net	1,486,100	1,505,097
FHLB stock	6,325	6,541
FRB stock	3,106	3,103
Accrued interest receivable	5,183	5,142
Interest rate contracts	8	8
Liabilities
Deposits	1,662,008	1,595,992
Advances from the Federal Home Loan Bank	97,320	107,019
Securities sold under agreements to repurchase	29,716	29,846
Accrued interest payable	981	575
Interest rate contracts	8	8
Estimated Fair Value | Level 1
Assets
Cash and cash equivalents	65,112	32,089
Accrued interest receivable	7	7
Estimated Fair Value | Level 2
Assets
Investment securities available for sale	2,733	2,851
Investment securities held to maturity	401,878	405,818
Loans held for sale		414
FHLB stock	6,325	6,541
FRB stock	3,106	3,103
Accrued interest receivable	1,108	1,045
Interest rate contracts	8	8
Liabilities
Deposits	1,282,798	1,285,070
Advances from the Federal Home Loan Bank	97,320	107,019
Securities sold under agreements to repurchase	29,716	29,846
Accrued interest payable	116	115
Interest rate contracts	8	8
Estimated Fair Value | Level 3
Assets
Investment securities held to maturity	781	845
Loans receivable, net	1,486,100	1,505,097
Accrued interest receivable	4,068	4,090
Liabilities
Deposits	379,210	310,922
Accrued interest payable	$ 865	$ 460

Fair Value of Financial Instr72

Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets and Liabilities Measured at Fair Value on Recurring Basis
Available-for-sale investments	$ 2,733	$ 2,851
Fair Value, Measurements, Recurring
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	8	8
Interest rate contracts - liabilities	(8)	(8)
Available-for-sale investments	2,733	2,851
Fair Value, Measurements, Recurring | Level 2
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	8	8
Interest rate contracts - liabilities	(8)	(8)
Available-for-sale investments	$ 2,733	$ 2,851

Fair Value of Financial Instr73

Fair Value of Financial Instruments - Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - Impaired loans $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value	$ 87
Total Gains (Losses)	(11)
Level 2
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value	$ 87

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Apr. 26, 2018	Mar. 31, 2018	Mar. 31, 2017
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)		$ 0.20	$ 0.20
Subsequent event
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)	$ 0.20