Territorial Bancorp (TBNK) 10-Q 9 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 30, 2019
Document and Entity Information
Entity Registrant Name	Territorial Bancorp Inc.
Entity Central Index Key	0001447051
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
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		9,641,994
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 23,667	$ 47,063
Investment securities available for sale, at fair value	14,321	2,560
Investment securities held to maturity, at amortized cost (fair value of $356,011 and $364,922 at March 31, 2019 and December 31, 2018, respectively)	356,496	371,517
Loans held for sale		309
Loans receivable, net	1,586,593	1,574,714
Federal Home Loan Bank stock, at cost	6,663	8,093
Federal Reserve Bank stock, at cost	3,116	3,114
Accrued interest receivable	5,472	5,274
Premises and equipment, net	4,602	4,823
Right-of-use asset, net	12,303
Bank-owned life insurance	45,273	45,066
Deferred income tax assets, net	2,974	4,136
Prepaid expenses and other assets	2,585	2,537
Total assets	2,064,065	2,069,206
Liabilities:
Deposits	1,667,379	1,629,164
Advances from the Federal Home Loan Bank	104,500	142,200
Securities sold under agreements to repurchase	10,000	30,000
Accounts payable and accrued expenses	23,605	23,346
Lease liability	12,793
Income taxes payable	3,055	2,407
Advance payments by borrowers for taxes and insurance	3,895	7,010
Total liabilities	1,825,227	1,834,127
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 9,616,195 and 9,645,955 shares at March 31, 2019 and December 31, 2018, respectively	96	97
Additional paid-in capital	63,748	65,090
Unearned ESOP shares	(4,771)	(4,893)
Retained earnings	187,084	182,594
Accumulated other comprehensive loss	(7,319)	(7,809)
Total stockholders' equity	238,838	235,079
Total liabilities and stockholders' equity	$ 2,064,065	$ 2,069,206

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Investment securities held to maturity, fair value (in dollars)	$ 356,011	$ 364,922
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	100,000,000	100,000,000
Common stock, shares issued	9,616,195	9,645,955
Common stock, shares outstanding	9,616,195	9,645,955

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest income:
Loans	$ 15,608	$ 14,907
Investment securities	2,871	3,129
Other investments	226	198
Total interest income	18,705	18,234
Interest expense:
Deposits	3,224	2,451
Advances from the Federal Home Loan Bank	555	419
Securities sold under agreements to repurchase	90	125
Total interest expense	3,869	2,995
Net interest income	14,836	15,239
Provision for loan losses	5	9
Net interest income after provision for loan losses	14,831	15,230
Noninterest income:
Service fees on loan and deposit accounts	438	415
Income on bank-owned life insurance	207	215
Gain on sale of investment securities	2,717
Gain on sale of loans	6	43
Other	72	69
Total noninterest income	3,440	742
Noninterest expense:
Salaries and employee benefits	5,686	5,647
Occupancy	1,592	1,516
Equipment	1,093	942
Federal deposit insurance premiums	144	153
Other general and administrative expenses	1,259	1,135
Total noninterest expense	9,774	9,393
Income before income taxes	8,497	6,579
Income taxes	1,973	1,759
Net income	$ 6,524	$ 4,820
Basic earnings per share (in dollars per share)	$ 0.71	$ 0.52
Diluted earnings per share (in dollars per share)	0.70	0.51
Cash dividends declared per common share (in dollars per share)	$ 0.22	$ 0.20
Basic weighted-average shares outstanding (in shares)	9,169,256	9,284,496
Diluted weighted-average shares outstanding (in shares)	9,313,139	9,484,177

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 6,524	$ 4,820
Change in unrealized loss on securities, net of tax	490	(49)
Other comprehensive income (loss), net of tax	490	(49)
Comprehensive income	$ 7,014	$ 4,771

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	Unearned ESOP Shares	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2017	$ 99,000	$ 73,050,000	$ (5,383,000)	$ 172,782,000	$ (5,694,000)	$ 234,854,000
Balance (in shares) at Dec. 31, 2017	9,915,058
Increase (Decrease) in Stockholders' Equity
Net income				4,820,000		4,820,000
Other comprehensive income (loss)					(49,000)	(49,000)
Reclassification of deferred taxes				1,135,000	(1,135,000)
Cash dividends declared ($0.22 per share and $0.20 per share for the three months ended March 31, 2019 and March 31, 2018, respectively)				(1,881,000)		(1,881,000)
Share-based compensation		67,000				67,000
Allocation of ESOP shares (12,233 shares for the three months ended March 31, 2019 and March 31, 2018, respectively)		253,000	123,000			376,000
Repurchase of shares of common stock	$ (2,000)	(6,125,000)				(6,127,000)
Repurchase of shares of common stock (in shares)	(199,236)
Exercise of options for common stock	$ 18,008	312,000				312,000
Balance at Mar. 31, 2018	$ 97,000	67,557,000	(5,260,000)	176,856,000	(6,878,000)	232,372,000
Balance (in shares) at Mar. 31, 2018	9,733,830
Balance at Dec. 31, 2018	$ 97,000	65,090,000	(4,893,000)	182,594,000	(7,809,000)	235,079,000
Balance (in shares) at Dec. 31, 2018	9,645,955
Increase (Decrease) in Stockholders' Equity
Net income				6,524,000		6,524,000
Other comprehensive income (loss)					490,000	490,000
Adoption of lease accounting standard				(10,000)		(10,000)
Cash dividends declared ($0.22 per share and $0.20 per share for the three months ended March 31, 2019 and March 31, 2018, respectively)				(2,024,000)		(2,024,000)
Share-based compensation		86,000				86,000
Share-based compensation (in shares)	3,340
Allocation of ESOP shares (12,233 shares for the three months ended March 31, 2019 and March 31, 2018, respectively)		211,000	122,000			333,000
Repurchase of shares of common stock	$ (1,000)	(2,933,000)				(2,934,000)
Repurchase of shares of common stock (in shares)	(107,660)
Exercise of options for common stock		1,294,000				1,294,000
Exercise of options for common stock (in shares)	74,560
Balance at Mar. 31, 2019	$ 96,000	$ 63,748,000	$ (4,771,000)	$ 187,084,000	$ (7,319,000)	$ 238,838,000
Balance (in shares) at Mar. 31, 2019	9,616,195

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Consolidated Statements of Stockholders' Equity, Share Data
Cash dividends declared per common share (in dollars per share)	$ 0.22	$ 0.20
Common Stock
Consolidated Statements of Stockholders' Equity, Share Data
Allocation of ESOP shares, shares	12,233	12,233

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 6,524	$ 4,820
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	5	9
Depreciation and amortization	292	314
Deferred income tax expense (benefit)	984	(367)
Amortization of fees, discounts, and premiums, net	(104)	(136)
Amortization of right-of-use asset	692
Origination of loans held for sale	(2,031)	(4,129)
Proceeds from sales of loans held for sale	2,346	4,575
Gain on sale of loans, net	(6)	(43)
Net gain on sale of real estate owned		(4)
Gain on sale of investment securities held to maturity	(2,717)
ESOP expense	333	376
Share-based compensation expense	86	67
Increase in accrued interest receivable	(198)	(41)
Net increase in bank-owned life insurance	(207)	(215)
Net increase in prepaid expenses and other assets	(48)	(37)
Net increase (decrease) in accounts payable and accrued expenses	674	(1,769)
Net decrease in lease liability	(681)
Net increase in advance payments by borrowers for taxes and insurance	(3,115)	(2,729)
Net decrease in income taxes receivable		1,558
Net increase in income taxes payable	648	134
Net cash from operating activities	3,477	2,383
Cash flows from investing activities:
Purchases of investment securities held to maturity	(2,998)	(14,983)
Principal repayments on investment securities held to maturity	6,607	10,495
Principal repayments on investment securities available for sale	301	49
Proceeds from sale of investment securities held to maturity	2,741
Loan originations, net of principal repayments on loans receivable	(11,786)	(16,008)
Purchases of Federal Home Loan Bank stock	(6,826)	(252)
Proceeds from redemption of Federal Home Loan Bank stock	8,256	468
Purchases of Federal Reserve Bank stock	(2)	(3)
Proceeds from sale of real estate owned		50
Purchases of premises and equipment	(71)	(181)
Net cash from investing activities	(3,778)	(20,365)
Cash flows from financing activities:
Net increase in deposits	38,215	67,877
Proceeds from advances from the Federal Home Loan Bank	168,700	2,500
Repayments of advances from the Federal Home Loan Bank	(206,400)	(11,700)
Repayments of securities sold under agreements to repurchase	(20,000)
Repurchases of common stock	(1,596)	(5,815)
Cash dividends paid	(2,014)	(1,857)
Net cash from financing activities	(23,095)	51,005
Net (decrease) increase in cash and cash equivalents	(23,396)	33,023
Cash and cash equivalents at beginning of the period	47,063	32,089
Cash and cash equivalents at end of the period	23,667	65,112
Cash paid for:
Interest on deposits and borrowings	3,844	2,590
Income taxes	341	434
Supplemental disclosure of noncash investing and financing activities:
Company stock acquired through stock swap and net settlement transactions	1,294	312
Loans transferred to real estate owned		46
Dividends declared, not yet paid	10	$ 24
Establishment of right-of-use asset	12,995
Establishment of lease liability	13,474
Transfer of securities from held-to-maturity to available-for-sale	$ 11,390

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2019
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, 2018. 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, 2019
Organization
Organization	(2) Organization In 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. In 2014, Territorial Savings Bank converted from a federal savings bank to a Hawaii state-chartered savings bank and became a member of the Federal Reserve System.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 31, 2019
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	(3) Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) amended the Leases topic of the FASB Accounting Standards Codification (ASC). The primary effects of the amendment are 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 require recognition on the consolidated balance sheets upon adoption of the amendment. The Company adopted this amendment as of January 1, 2019, by recording a right-of-use (ROU) asset of $12.7 million and a lease liability of $13.2 million. 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 August 2017, the FASB amended the Derivatives and Hedging topic of the FASB ASC. The primary focus of the amendment is to simplify hedge accounting and make the results of hedge transactions in the financial statements easier to understand. An ancillary result of the amendment is that an entity may make a one-time transfer of certain securities from the held-to-maturity classification to the available-for-sale classification. The amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company does not engage in hedging activities. However, it has elected to transfer $11.1 million of held-to-maturity securities to the available-for-sale classification as of January 1, 2019, and has recorded an unrecognized gain of $304,000, net of taxes, to other comprehensive income. In August 2018, the FASB amended the Fair Value Measurement topic of the FASB ASC. The amendment affects disclosures only, and includes additions, deletions and modifications of the disclosures of assets and liabilities reported in the fair value hierarchy. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Entities are allowed to early adopt any removed or modified disclosures while delaying adoption of any added disclosures until the effective date. The Company does not expect the adoption of this amendment to have a material effect on its consolidated financial statements. In August 2018, the FASB amended the Compensation – Retirement Benefits topic of the FASB ASC. The amendment affects disclosures related to defined benefit pension or other post retirement plans and includes additions, deletions and clarifications of disclosures. The amendment is effective for fiscal years ending after December 15, 2020, with early adoption permitted. The Company does not expect the adoption of this amendment to have a material effect on its consolidated financial statements.

Cash and Cash Equivalents

Cash and Cash Equivalents	3 Months Ended
	Mar. 31, 2019
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) 2019 2018 Cash and due from banks $ 9,694 $ 9,771 Interest-earning deposits in other banks 13,973 37,292 Cash and cash equivalents $ 23,667 $ 47,063 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, 2019
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, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 13,738 $ 613 $ (30) $ 14,321 Total $ 13,738 $ 613 $ (30) $ 14,321 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 356,496 $ 3,388 $ (3,873) $ 356,011 Total $ 356,496 $ 3,388 $ (3,873) $ 356,011 December 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,644 $ — $ (84) $ 2,560 Total $ 2,644 $ — $ (84) $ 2,560 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 371,442 $ 2,056 $ (9,279) $ 364,219 Trust preferred securities 75 628 — 703 Total $ 371,517 $ 2,684 $ (9,279) $ 364,922 The amortized cost and estimated fair value of investment securities by maturity date at March 31, 2019 are shown below. Incorporated in the maturity schedule are mortgage-backed 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 13,738 14,321 Total $ 13,738 $ 14,321 Held-to-maturity: Due within 5 years $ 2 $ 2 Due after 5 years through 10 years 62 63 Due after 10 years 356,432 355,946 Total $ 356,496 $ 356,011 Realized gains and losses and the proceeds from sales of held-to-maturity securities are shown in the table below. Three Months Ended March 31, (Dollars in thousands) 2019 2018 Proceeds from sales $ 2,741 $ — Gross gains 2,717 — Gross losses — — During the three months ended March 31, 2019, the Company sold its investment in its trust preferred security, PreTSL XXIII. The sale of this trust preferred security, which had a significant deterioration in the issuer’s credit rating, 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. As of January 1, 2019, the Company transferred securities with a book value of $11.4 million from held-to-maturity to available-for-sale with the adoption of ASU 2017-12 on derivatives and hedging. Investment securities with amortized costs of $324.4 million and $308.8 million at March 31, 2019 and December 31, 2018, 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, 2019 and December 31, 2018. 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, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ — $ — $ 2,568 $ (30) 1 $ 2,568 $ (30) Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ — $ — $ 175,603 $ (3,873) 56 $ 175,603 $ (3,873) December 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ — $ — $ 2,560 $ (84) 1 $ 2,560 $ (84) Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 57,154 $ (254) $ 220,338 $ (9,025) 81 $ 277,492 $ (9,279) 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, 2019 and December 31, 2018.

Loans Receivable and Allowance

Loans Receivable and Allowance for Loan Losses	3 Months Ended
	Mar. 31, 2019
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) 2019 2018 Real estate loans: First mortgages: One- to four-family residential $ 1,541,045 $ 1,531,149 Multi-family residential 12,052 12,151 Construction, commercial and other 22,092 20,780 Home equity loans and lines of credit 11,500 11,090 Total real estate loans 1,586,689 1,575,170 Other loans: Loans on deposit accounts 343 357 Consumer and other loans 5,238 4,939 Total other loans 5,581 5,296 Less: Net unearned fees and discounts (3,018) (3,110) Allowance for loan losses (2,659) (2,642) Total unearned fees, discounts and allowance for loan losses (5,677) (5,752) Loans receivable, net $ 1,586,593 $ 1,574,714 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, 2019: Balance, beginning of period $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Provision (reversal of provision) for loan losses (15) 11 — 4 5 5 1,782 454 1 51 359 2,647 Charge-offs — — — (7) — (7) Recoveries 18 — — 1 — 19 Net recoveries (charge-offs) 18 — — (6) — 12 Balance, end of period $ 1,800 $ 454 $ 1 $ 45 $ 359 $ 2,659 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 Management considers the allowance for loan losses at March 31, 2019 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, 2019: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,800 454 1 45 359 2,659 Total ending allowance balance $ 1,800 $ 454 $ 1 $ 45 $ 359 $ 2,659 Loans: Ending loan balance: Individually evaluated for impairment $ 2,621 $ — $ 143 $ — $ — $ 2,764 Collectively evaluated for impairment 1,547,510 22,021 11,356 5,601 — 1,586,488 Total ending loan balance $ 1,550,131 $ 22,021 $ 11,499 $ 5,601 $ — $ 1,589,252 December 31, 2018: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,797 443 1 47 354 2,642 Total ending allowance balance $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Loans: Ending loan balance: Individually evaluated for impairment $ 2,962 $ — $ 148 $ — $ — $ 3,110 Collectively evaluated for impairment 1,537,292 20,698 10,945 5,311 — 1,574,246 Total ending loan balance $ 1,540,254 $ 20,698 $ 11,093 $ 5,311 $ — $ 1,577,356 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, 2019: With no related allowance recorded: One- to four-family residential mortgages $ 2,621 $ 3,151 Home equity loans and lines of credit 143 222 Total $ 2,764 $ 3,373 December 31, 2018: With no related allowance recorded: One- to four-family residential mortgages $ 2,962 $ 3,486 Home equity loans and lines of credit 148 224 Total $ 3,110 $ 3,710 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 2019: With no related allowance recorded: One- to four-family residential mortgages $ 2,638 $ 9 Home equity loans and lines of credit 146 — Total $ 2,784 $ 9 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 There were no loans individually evaluated for impairment with a related allowance for loan loss as of March 31, 2019 or December 31, 2018. 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 11 nonaccrual loans with a book value of $2.2 million as of March 31, 2019 and December 31, 2018. The Company collected interest on nonaccrual loans of $23,000 and $30,000 during the three months ended March 31, 2019 and 2018, 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 $34,000 and $45,000 during the three months ended March 31, 2019 and 2018, respectively, had the loans been accruing interest. The Company did not have any loans 90 days or more past due and still accruing interest as of March 31, 2019 or December 31, 2018. The table below presents the aging of loans and accrual status by class of loans: Loans 90 Days or More 30 - 59 60 - 89 90 Days or Past Due Days Past Days Past More Total Past Loans Not Total Nonaccrual and Still (Dollars in thousands) Due Due Past Due Due Past Due Loans Loans Accruing March 31, 2019: One- to four-family residential mortgages $ 811 $ 290 $ 838 $ 1,939 $ 1,536,156 $ 1,538,095 $ 2,033 $ — Multi-family residential mortgages — — — — 12,036 12,036 — — Construction, commercial and other mortgages — — — — 22,021 22,021 — — Home equity loans and lines of credit 28 — 41 69 11,430 11,499 143 — Loans on deposit accounts — — — — 343 343 — — Consumer and other 3 3 — 6 5,252 5,258 — — Total $ 842 $ 293 $ 879 $ 2,014 $ 1,587,238 $ 1,589,252 $ 2,176 $ — December 31, 2018: One- to four-family residential mortgages $ 40 $ 292 $ 838 $ 1,170 $ 1,526,949 $ 1,528,119 $ 2,065 $ — Multi-family residential mortgages — — — — 12,135 12,135 — — Construction, commercial and other mortgages — — — — 20,698 20,698 — — Home equity loans and lines of credit — 29 41 70 11,023 11,093 148 — Loans on deposit accounts — — — — 357 357 — — Consumer and other 3 4 — 7 4,947 4,954 — — Total $ 43 $ 325 $ 879 $ 1,247 $ 1,576,109 $ 1,577,356 $ 2,213 $ — 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, 2019 or 2018. There were no new troubled debt restructurings within the 12 months ended March 31, 2019 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, 2019: One- to four-family residential mortgages 3 $ 588 3 $ 673 $ 1,261 Home equity loans and lines of credit — — 1 74 74 Total 3 $ 588 4 $ 747 $ 1,335 December 31, 2018: One- to four-family residential mortgages 4 $ 897 3 $ 691 $ 1,588 Home equity loans and lines of credit — — 1 78 78 Total 4 $ 897 4 $ 769 $ 1,666 There were no delinquent restructured loans as of March 31, 2019 or December 31, 2018. 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, 2019, we had no commitments to lend any additional funds to these borrowers. The Company had no real estate owned as of March 31, 2019 or December 31, 2018. There were two one- to four-family residential mortgage loans totaling $838,000 and one home equity loan for $41,000 in the process of foreclosure at both March 31, 2019 and December 31, 2018. 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, 2019 and 2018, the Company sold mortgage loans held for sale with principal balances of $2.3 million and $4.5 million, respectively, and recognized gains of $6,000 and $43,000, respectively. The Company did not have any loans held for sale at March 31, 2019. The Company had one loan held for sale for $309,000 at December 31, 2018. The Company serviced loans for others of $29.2 million at March 31, 2019 and $30.3 million at December 31, 2018. Of these amounts, $1.5 million relate to securitizations for which the Company continues to hold the related mortgage-backed securities at March 31, 2019 and December 31, 2018. The amount of contractually specified servicing fees earned for the three-month periods ended March 31, 2019 and 2018 was $20,000 and $23,000, 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, 2019
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, 2019 December 31, 2018 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ 10,000 1.65 % $ 25,000 1.66 % Over 1 year to 2 years — — 5,000 1.65 Total $ 10,000 1.65 % $ 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, 2019. 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 $ 28,557 $ 28,131 $ 10,000 $ 18,557 9

Offsetting of Financial Liabili

Offsetting of Financial Liabilities	3 Months Ended
	Mar. 31, 2019
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, 2019: Securities sold under agreements to repurchase $ 10,000 $ — $ 10,000 $ 10,000 $ — $ — December 31, 2018: Securities sold under agreements to repurchase $ 30,000 $ — $ 30,000 $ 30,000 $ — $ —

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Mar. 31, 2019
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) 2019 2018 Net periodic benefit cost for the period: Service cost $ 25 $ 20 Interest cost 41 37 Expected return on plan assets — — Amortization of prior service cost — — Recognized actuarial loss — — Recognized curtailment loss — — Net periodic benefit cost $ 66 $ 57 The service cost component of net periodic benefit cost is included with salaries and employee benefits in the consolidated statements of income. The other components of net periodic benefit cost are included in other general and administrative expenses.

Employee Stock Ownership Plan

Employee Stock Ownership Plan	3 Months Ended
	Mar. 31, 2019
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, 2019 and 2018 amounted to $334,000 and $376,000, respectively. Shares held by the ESOP trust were as follows: March 31, December 31, 2019 2018 Allocated shares 458,274 446,041 Unearned shares 477,096 489,329 Total ESOP shares 935,370 935,370 Fair value of unearned shares, in thousands $ 12,839 $ 12,713 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, 2019 and 2018, we accrued $57,000 and $95,000, respectively, for the ESOP restoration plan.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2019
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) 2019 2018 Compensation expense $ 86 $ 67 Income tax benefit 23 18 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, 2019 and 2018: Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2018 337,654 $ 17.51 1.74 $ 2,859 Granted — — — — Exercised 74,560 17.36 — 788 Forfeited — — — — Expired — — — — Options outstanding at March 31, 2019 263,094 $ 17.55 1.51 $ 2,461 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 vested and exercisable at March 31, 2019 $ $ 2,461 The following summarizes certain stock option activity of the Company: For the Three Months Ended March 31, (In thousands) 2019 2018 Intrinsic value of stock options exercised $ 788 $ 237 Proceeds received from stock options exercised 1,294 313 Tax benefits realized from stock options exercised 171 42 Total fair value of stock options that vested — — During the three months ended March 31, 2019, we issued 28,197 shares of common stock, net, in exchange for 74,560 stock options and 46,363 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 net settlement to pay the exercise price of stock options. As of March 31, 2019, the Company had no unrecognized compensation costs related to the stock option plan. 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, 2018 16,424 $ 30.26 Granted 10,366 27.30 Vested 3,340 30.73 Forfeited — — Nonvested at March 31, 2019 23,450 $ 28.89 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 During the three months ended March 31, 2019, the Company issued 10,366 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, 2019, the Company had $584,000 of unrecognized compensation costs related to restricted stock. During the three months ended March 31, 2019, the Company issued 8,292 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 2022 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% and 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, 2018 23,538 $ 30.14 Granted 8,292 27.30 Vested — — Forfeited — — Nonvested at March 31, 2019 31,830 $ 29.40 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, 2019, the Company had $405,000 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, 2019, the Company issued 2,073 of PRSUs to certain members of executive management under the 2010 Equity Incentive Plan. These PRSUs will vest in the first quarter of 2022 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 7, 2019 Performance period: January 1, 2019 to December 31, 2021 2.82 year risk-free rate on grant date: 2.45% December 31, 2018 closing price: $25.98 Closing stock price on the date of grant: $27.30 Annualized volatility (based on 2.82 year historical volatility as of the grant date): 15.1% 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, 2018 $ 26.42 Granted 2,073 24.45 Vested — — Forfeited — — Nonvested at March 31, 2019 7,957 $ 25.91 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, 2019, the Company had $104,000 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, 2019
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 March 31, (Dollars in thousands, except per share data) 2019 2018 Net income $ 6,524 $ 4,820 Income allocated to participating securities (35) (15) Net income available to common shareholders $ 6,489 $ 4,805 Weighted-average number of shares used in: Basic earnings per share 9,169,256 9,284,496 Dilutive common stock equivalents: Stock options and restricted stock units 143,883 199,681 Diluted earnings per share 9,313,139 9,484,177 Net income per common share, basic $ 0.71 $ 0.52 Net income per common share, diluted $ 0.70 $ 0.51

Other Comprehensive Income and

Other Comprehensive Income and Loss	3 Months Ended
	Mar. 31, 2019
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: Unfunded Unrealized Pension Loss on (Dollars in thousands) Liability Securities Total Three months ended March 31, 2019 Balances at beginning of period $ 7,721 $ 88 $ 7,809 Other comprehensive gain, net of taxes — (490) (490) Net current period other comprehensive gain — (490) (490) Balances at end of period $ 7,721 $ (402) $ 7,319 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 retained earnings 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 The table below presents the tax effect on each component of accumulated other comprehensive income and loss: Three Months Ended March 31, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized loss on securities $ (668) $ 178 $ (490) $ 66 $ (17) $ 49 Total $ (668) $ 178 $ (490) $ 66 $ (17) $ 49

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2019
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 statements 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 Three months ended March 31, 2019 Revenue from contracts with customers $ 327 $ 46 $ 373 Other revenue 111 26 137 Total $ 438 $ 72 $ 510 Three months ended March 31, 2018 Revenue from contracts with customers $ 320 $ 41 $ 361 Other revenue 95 28 123 Total $ 415 $ 69 $ 484

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases
Leases	(15) Leases The Company leases most of its premises and some vehicles and equipment under operating leases expiring on various dates through 2029. The majority of lease agreements relate to real estate and generally provide that the Company pay taxes, insurance, maintenance and certain other operating expenses applicable to the leased premises. Variable lease components and nonlease components are not included in the Company’s computation of the right-of-use (ROU) asset or lease liability. The Company also does not include short-term leases in the computation of the ROU asset or lease liability. Short-term leases are leases with a term at commencement of 12 months or less. Short-term lease expense is recorded on a straight-line basis over the term of the lease. Lease agreements do not contain any residual value guarantees or restrictive covenants. Certain leases have renewal options at the expiration of the lease terms. Generally, option periods are not included in the computation of the lease term, ROU asset or lease liability because the Company is not reasonably certain to exercise renewal options at the expiration of the lease terms. The Company has elected to use the package of practical expedients to: a) not reassess whether any expired or existing contracts are or contain leases, b) not reassess the lease classification for any expired or existing leases, and c) not reassess initial direct costs for any existing leases. The Company has also chosen the option to not restate comparative periods prior to the adoption of the new lease accounting standard. Because the discount rates implicit in our leases are not known, discount rates have been estimated using the rates for fixed-rate, amortizing advances from the Federal Home Loan Bank (FHLB) for the approximate terms of the leases. FHLB advances are collateralized by a blanket pledge of the Bank’s assets that are not otherwise pledged. The table below presents the lease costs for the three months ended March 31, 2019: Three Months Ended (Dollars in thousands) March 31, 2019 Operating lease costs $ 783 Short-term lease costs 6 Variable lease costs 25 Total lease costs $ 814 At March 31, 2019, future minimum rental commitments under noncancellable operating leases are as follows: (Dollars in thousands) 2019 $ 2,115 2020 2,463 2021 1,977 2022 1,808 2023 1,520 Thereafter 4,227 Total $ 14,110 Less interest 1,317 Present value of leases $ 12,793 The table below presents other lease related information as of March 31, 2019: March 31, (Dollars in thousands) 2019 Cash paid for amounts included in measurement of lease liabilities $ 773 New ROU operating assets $ 12,995 Weighted-average remaining lease term (years) Weighted-average discount rate %

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2019
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(16) 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, 2019 Assets Cash and cash equivalents $ 23,667 $ 23,667 $ 23,667 $ — $ — Investment securities available for sale 14,321 14,321 — 14,321 — Investment securities held to maturity 356,496 356,011 — 356,011 — Loans receivable, net 1,586,593 1,609,304 — — 1,609,304 FHLB stock 6,663 6,663 — 6,663 — FRB stock 3,116 3,116 — 3,116 — Accrued interest receivable 5,472 5,472 3 998 4,471 Interest rate contracts 4 4 — 4 — Liabilities Deposits 1,667,379 1,666,152 — 1,210,356 455,796 Advances from the Federal Home Loan Bank 104,500 104,411 — 104,411 — Securities sold under agreements to repurchase 10,000 9,935 — 9,935 — Accrued interest payable 268 268 — 47 221 Interest rate contracts 4 4 — 4 — December 31, 2018 Assets Cash and cash equivalents $ 47,063 $ 47,063 $ 47,063 $ — $ — Investment securities available for sale 2,560 2,560 — 2,560 — Investment securities held to maturity 371,517 364,922 — 364,219 703 Loans held for sale 309 319 — 319 — Loans receivable, net 1,574,714 1,553,672 — — 1,553,672 FHLB stock 8,093 8,093 — 8,093 — FRB stock 3,114 3,114 — 3,114 — Accrued interest receivable 5,274 5,274 12 960 4,302 Interest rate contracts 5 5 — 5 — Liabilities Deposits 1,629,164 1,626,587 — 1,238,023 388,564 Advances from the Federal Home Loan Bank 142,200 141,874 — 141,874 — Securities sold under agreements to repurchase 30,000 29,876 — 29,876 — Accrued interest payable 243 243 — 111 132 Interest rate contracts 5 5 — 5 — At March 31, 2019 and December 31, 2018, 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, 2019 Interest rate contracts — assets $ — $ 4 $ — $ 4 Interest rate contracts — liabilities — (4) — (4) Available-for-sale investments — 14,321 — 14,321 December 31, 2018 Interest rate contracts — assets $ — $ 5 $ — $ 5 Interest rate contracts — liabilities — (5) — (5) Available-for-sale investments — 2,560 — 2,560 There were no assets measured at fair value on a nonrecurring basis as of March 31, 2019 and December 31, 2018.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events
Subsequent Events	(17) Subsequent Events On April 25, 2019, the Board of Directors of Territorial Bancorp Inc. declared a quarterly cash dividend of $0.22 per share of common stock. The dividend is expected to be paid on May 23, 2019 to stockholders of record as of May 9, 2019.

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	3 Months Ended
	Mar. 31, 2019
Cash and Cash Equivalents
Schedule of balances of cash and cash equivalents	March 31, December 31, (Dollars in thousands) 2019 2018 Cash and due from banks $ 9,694 $ 9,771 Interest-earning deposits in other banks 13,973 37,292 Cash and cash equivalents $ 23,667 $ 47,063

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 13,738 $ 613 $ (30) $ 14,321 Total $ 13,738 $ 613 $ (30) $ 14,321 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 356,496 $ 3,388 $ (3,873) $ 356,011 Total $ 356,496 $ 3,388 $ (3,873) $ 356,011 December 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 2,644 $ — $ (84) $ 2,560 Total $ 2,644 $ — $ (84) $ 2,560 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 371,442 $ 2,056 $ (9,279) $ 364,219 Trust preferred securities 75 628 — 703 Total $ 371,517 $ 2,684 $ (9,279) $ 364,922
Schedule of amortized cost and estimated fair value of investment securities by maturity	Amortized Estimated (Dollars in thousands) Cost Fair Value Available-for-sale: Due within 5 years $ — $ — Due after 5 years through 10 years — — Due after 10 years 13,738 14,321 Total $ 13,738 $ 14,321 Held-to-maturity: Due within 5 years $ 2 $ 2 Due after 5 years through 10 years 62 63 Due after 10 years 356,432 355,946 Total $ 356,496 $ 356,011
Schedule of realized gains and losses and proceeds from sales of securities held to maturity	Three Months Ended March 31, (Dollars in thousands) 2019 2018 Proceeds from sales $ 2,741 $ — Gross gains 2,717 — 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, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ — $ — $ 2,568 $ (30) 1 $ 2,568 $ (30) Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ — $ — $ 175,603 $ (3,873) 56 $ 175,603 $ (3,873) December 31, 2018: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ — $ — $ 2,560 $ (84) 1 $ 2,560 $ (84) Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 57,154 $ (254) $ 220,338 $ (9,025) 81 $ 277,492 $ (9,279)

Loans Receivable and Allowanc_2

Loans Receivable and Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2019
Loans Receivable and Allowance for Loan Losses
Schedule of components of loans receivable	March 31, December 31, (Dollars in thousands) 2019 2018 Real estate loans: First mortgages: One- to four-family residential $ 1,541,045 $ 1,531,149 Multi-family residential 12,052 12,151 Construction, commercial and other 22,092 20,780 Home equity loans and lines of credit 11,500 11,090 Total real estate loans 1,586,689 1,575,170 Other loans: Loans on deposit accounts 343 357 Consumer and other loans 5,238 4,939 Total other loans 5,581 5,296 Less: Net unearned fees and discounts (3,018) (3,110) Allowance for loan losses (2,659) (2,642) Total unearned fees, discounts and allowance for loan losses (5,677) (5,752) Loans receivable, net $ 1,586,593 $ 1,574,714
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, 2019: Balance, beginning of period $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Provision (reversal of provision) for loan losses (15) 11 — 4 5 5 1,782 454 1 51 359 2,647 Charge-offs — — — (7) — (7) Recoveries 18 — — 1 — 19 Net recoveries (charge-offs) 18 — — (6) — 12 Balance, end of period $ 1,800 $ 454 $ 1 $ 45 $ 359 $ 2,659 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
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, 2019: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,800 454 1 45 359 2,659 Total ending allowance balance $ 1,800 $ 454 $ 1 $ 45 $ 359 $ 2,659 Loans: Ending loan balance: Individually evaluated for impairment $ 2,621 $ — $ 143 $ — $ — $ 2,764 Collectively evaluated for impairment 1,547,510 22,021 11,356 5,601 — 1,586,488 Total ending loan balance $ 1,550,131 $ 22,021 $ 11,499 $ 5,601 $ — $ 1,589,252 December 31, 2018: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,797 443 1 47 354 2,642 Total ending allowance balance $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Loans: Ending loan balance: Individually evaluated for impairment $ 2,962 $ — $ 148 $ — $ — $ 3,110 Collectively evaluated for impairment 1,537,292 20,698 10,945 5,311 — 1,574,246 Total ending loan balance $ 1,540,254 $ 20,698 $ 11,093 $ 5,311 $ — $ 1,577,356
Schedule of balance of impaired loans individually evaluated for impairment by class of loans	Unpaid Recorded Principal (Dollars in thousands) Investment Balance March 31, 2019: With no related allowance recorded: One- to four-family residential mortgages $ 2,621 $ 3,151 Home equity loans and lines of credit 143 222 Total $ 2,764 $ 3,373 December 31, 2018: With no related allowance recorded: One- to four-family residential mortgages $ 2,962 $ 3,486 Home equity loans and lines of credit 148 224 Total $ 3,110 $ 3,710
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 2019: With no related allowance recorded: One- to four-family residential mortgages $ 2,638 $ 9 Home equity loans and lines of credit 146 — Total $ 2,784 $ 9 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
Schedule of aging of loans and accrual status by class of loans	Loans 90 Days or More 30 - 59 60 - 89 90 Days or Past Due Days Past Days Past More Total Past Loans Not Total Nonaccrual and Still (Dollars in thousands) Due Due Past Due Due Past Due Loans Loans Accruing March 31, 2019: One- to four-family residential mortgages $ 811 $ 290 $ 838 $ 1,939 $ 1,536,156 $ 1,538,095 $ 2,033 $ — Multi-family residential mortgages — — — — 12,036 12,036 — — Construction, commercial and other mortgages — — — — 22,021 22,021 — — Home equity loans and lines of credit 28 — 41 69 11,430 11,499 143 — Loans on deposit accounts — — — — 343 343 — — Consumer and other 3 3 — 6 5,252 5,258 — — Total $ 842 $ 293 $ 879 $ 2,014 $ 1,587,238 $ 1,589,252 $ 2,176 $ — December 31, 2018: One- to four-family residential mortgages $ 40 $ 292 $ 838 $ 1,170 $ 1,526,949 $ 1,528,119 $ 2,065 $ — Multi-family residential mortgages — — — — 12,135 12,135 — — Construction, commercial and other mortgages — — — — 20,698 20,698 — — Home equity loans and lines of credit — 29 41 70 11,023 11,093 148 — Loans on deposit accounts — — — — 357 357 — — Consumer and other 3 4 — 7 4,947 4,954 — — Total $ 43 $ 325 $ 879 $ 1,247 $ 1,576,109 $ 1,577,356 $ 2,213 $ —
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, 2019: One- to four-family residential mortgages 3 $ 588 3 $ 673 $ 1,261 Home equity loans and lines of credit — — 1 74 74 Total 3 $ 588 4 $ 747 $ 1,335 December 31, 2018: One- to four-family residential mortgages 4 $ 897 3 $ 691 $ 1,588 Home equity loans and lines of credit — — 1 78 78 Total 4 $ 897 4 $ 769 $ 1,666

Securities Sold Under Agreeme_2

Securities Sold Under Agreements to Repurchase (Tables)	3 Months Ended
	Mar. 31, 2019
Securities Sold Under Agreements to Repurchase
Summary of securities sold under agreements to repurchase	March 31, 2019 December 31, 2018 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ 10,000 1.65 % $ 25,000 1.66 % Over 1 year to 2 years — — 5,000 1.65 Total $ 10,000 1.65 % $ 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 $ 28,557 $ 28,131 $ 10,000 $ 18,557 9

Offsetting of Financial Liabi_2

Offsetting of Financial Liabilities (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019: Securities sold under agreements to repurchase $ 10,000 $ — $ 10,000 $ 10,000 $ — $ — December 31, 2018: 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, 2019
Employee Benefit Plans
Schedule of components of net periodic benefit cost	SERP Three Months Ended March 31, (Dollars in thousands) 2019 2018 Net periodic benefit cost for the period: Service cost $ 25 $ 20 Interest cost 41 37 Expected return on plan assets — — Amortization of prior service cost — — Recognized actuarial loss — — Recognized curtailment loss — — Net periodic benefit cost $ 66 $ 57

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	3 Months Ended
	Mar. 31, 2019
Employee Stock Ownership Plan
Schedule of shares held by the ESOP trust	March 31, December 31, 2019 2018 Allocated shares 458,274 446,041 Unearned shares 477,096 489,329 Total ESOP shares 935,370 935,370 Fair value of unearned shares, in thousands $ 12,839 $ 12,713

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Schedule of compensation expense and related tax benefit for all share-based awards	Three Months Ended March 31, (In thousands) 2019 2018 Compensation expense $ 86 $ 67 Income tax benefit 23 18
Schedule of stock option activity	Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2018 337,654 $ 17.51 1.74 $ 2,859 Granted — — — — Exercised 74,560 17.36 — 788 Forfeited — — — — Expired — — — — Options outstanding at March 31, 2019 263,094 $ 17.55 1.51 $ 2,461 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 vested and exercisable at March 31, 2019 $ $ 2,461
Summary of certain stock option activity	For the Three Months Ended March 31, (In thousands) 2019 2018 Intrinsic value of stock options exercised $ 788 $ 237 Proceeds received from stock options exercised 1,294 313 Tax benefits realized from stock options exercised 171 42 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, 2018 16,424 $ 30.26 Granted 10,366 27.30 Vested 3,340 30.73 Forfeited — — Nonvested at March 31, 2019 23,450 $ 28.89 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
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, 2018 23,538 $ 30.14 Granted 8,292 27.30 Vested — — Forfeited — — Nonvested at March 31, 2019 31,830 $ 29.40 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, 2018 $ 26.42 Granted 2,073 24.45 Vested — — Forfeited — — Nonvested at March 31, 2019 7,957 $ 25.91 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, 2019
Earnings Per Share
Schedule of information used to compute basic and diluted earnings per share	Three Months Ended March 31, (Dollars in thousands, except per share data) 2019 2018 Net income $ 6,524 $ 4,820 Income allocated to participating securities (35) (15) Net income available to common shareholders $ 6,489 $ 4,805 Weighted-average number of shares used in: Basic earnings per share 9,169,256 9,284,496 Dilutive common stock equivalents: Stock options and restricted stock units 143,883 199,681 Diluted earnings per share 9,313,139 9,484,177 Net income per common share, basic $ 0.71 $ 0.52 Net income per common share, diluted $ 0.70 $ 0.51

Other Comprehensive Income an_2

Other Comprehensive Income and Loss (Tables)	3 Months Ended
	Mar. 31, 2019
Other Comprehensive Income and Loss
Schedule of changes in components of accumulated other comprehensive income and loss, net of taxes	Unfunded Unrealized Pension Loss on (Dollars in thousands) Liability Securities Total Three months ended March 31, 2019 Balances at beginning of period $ 7,721 $ 88 $ 7,809 Other comprehensive gain, net of taxes — (490) (490) Net current period other comprehensive gain — (490) (490) Balances at end of period $ 7,721 $ (402) $ 7,319 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 retained earnings 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
Schedule of tax effect on each component of accumulated other comprehensive loss	Three Months Ended March 31, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized loss on securities $ (668) $ 178 $ (490) $ 66 $ (17) $ 49 Total $ (668) $ 178 $ (490) $ 66 $ (17) $ 49

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2019
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 Three months ended March 31, 2019 Revenue from contracts with customers $ 327 $ 46 $ 373 Other revenue 111 26 137 Total $ 438 $ 72 $ 510 Three months ended March 31, 2018 Revenue from contracts with customers $ 320 $ 41 $ 361 Other revenue 95 28 123 Total $ 415 $ 69 $ 484

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases
Schedule of lease costs	The table below presents the lease costs for the three months ended March 31, 2019: Three Months Ended (Dollars in thousands) March 31, 2019 Operating lease costs $ 783 Short-term lease costs 6 Variable lease costs 25 Total lease costs $ 814
Schedule of future minimum rental commitments under noncancellable operating leases	At March 31, 2019, future minimum rental commitments under noncancellable operating leases are as follows: (Dollars in thousands) 2019 $ 2,115 2020 2,463 2021 1,977 2022 1,808 2023 1,520 Thereafter 4,227 Total $ 14,110 Less interest 1,317 Present value of leases $ 12,793
Schedule of other lease related information	The table below presents other lease related information as of March 31, 2019: March 31, (Dollars in thousands) 2019 Cash paid for amounts included in measurement of lease liabilities $ 773 New ROU operating assets $ 12,995 Weighted-average remaining lease term (years) Weighted-average discount rate %

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019 Assets Cash and cash equivalents $ 23,667 $ 23,667 $ 23,667 $ — $ — Investment securities available for sale 14,321 14,321 — 14,321 — Investment securities held to maturity 356,496 356,011 — 356,011 — Loans receivable, net 1,586,593 1,609,304 — — 1,609,304 FHLB stock 6,663 6,663 — 6,663 — FRB stock 3,116 3,116 — 3,116 — Accrued interest receivable 5,472 5,472 3 998 4,471 Interest rate contracts 4 4 — 4 — Liabilities Deposits 1,667,379 1,666,152 — 1,210,356 455,796 Advances from the Federal Home Loan Bank 104,500 104,411 — 104,411 — Securities sold under agreements to repurchase 10,000 9,935 — 9,935 — Accrued interest payable 268 268 — 47 221 Interest rate contracts 4 4 — 4 — December 31, 2018 Assets Cash and cash equivalents $ 47,063 $ 47,063 $ 47,063 $ — $ — Investment securities available for sale 2,560 2,560 — 2,560 — Investment securities held to maturity 371,517 364,922 — 364,219 703 Loans held for sale 309 319 — 319 — Loans receivable, net 1,574,714 1,553,672 — — 1,553,672 FHLB stock 8,093 8,093 — 8,093 — FRB stock 3,114 3,114 — 3,114 — Accrued interest receivable 5,274 5,274 12 960 4,302 Interest rate contracts 5 5 — 5 — Liabilities Deposits 1,629,164 1,626,587 — 1,238,023 388,564 Advances from the Federal Home Loan Bank 142,200 141,874 — 141,874 — Securities sold under agreements to repurchase 30,000 29,876 — 29,876 — Accrued interest payable 243 243 — 111 132 Interest rate contracts 5 5 — 5 —
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, 2019 Interest rate contracts — assets $ — $ 4 $ — $ 4 Interest rate contracts — liabilities — (4) — (4) Available-for-sale investments — 14,321 — 14,321 December 31, 2018 Interest rate contracts — assets $ — $ 5 $ — $ 5 Interest rate contracts — liabilities — (5) — (5) Available-for-sale investments — 2,560 — 2,560

Recently Issued Accounting Pr_2

Recently Issued Accounting Pronouncements (Details) - USD ($)	Jan. 01, 2019	Mar. 31, 2019
Summary of Significant Accounting Policies
Right-of-use asset, net	$ 12,700,000	$ 12,303,000
Lease liability	13,200,000	12,793,000
Transfer of securities from held-to-maturity to available-for-sale	11,100,000	$ 11,390,000
Unrecognized gain, net of taxes, on transfer from held-to-maturity to available-for-sale	$ 304,000

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents
Cash and due from banks	$ 9,694	$ 9,771
Interest-earning deposits in other banks	13,973	37,292
Cash and cash equivalents	$ 23,667	$ 47,063

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Fair Values of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Available-for-sale:
Amortized Cost	$ 13,738	$ 2,644
Gross Unrealized Gains	613
Gross Unrealized Losses	(30)	(84)
Estimated Fair Value	14,321	2,560
U.S. government-sponsored mortgage-backed securities
Available-for-sale:
Amortized Cost	13,738	2,644
Gross Unrealized Gains	613
Gross Unrealized Losses	(30)	(84)
Estimated Fair Value	$ 14,321	$ 2,560

Investment Securities - Amort_2

Investment Securities - Amortized Cost and Fair Values of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Held-to-maturity:
Amortized Cost	$ 356,496	$ 371,517
Gross Unrealized Gains	3,388	2,684
Gross Unrealized Losses	(3,873)	(9,279)
Estimated Fair Value	356,011	364,922
U.S. government-sponsored mortgage-backed securities
Held-to-maturity:
Amortized Cost		371,442
Gross Unrealized Gains		2,056
Gross Unrealized Losses		(9,279)
Estimated Fair Value		364,219
Trust preferred securities
Held-to-maturity:
Amortized Cost	356,496	75
Gross Unrealized Gains	3,388	628
Gross Unrealized Losses	(3,873)
Estimated Fair Value	$ 356,011	$ 703

Investment Securities - Maturit

Investment Securities - Maturity Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortized Cost
Due after 10 years	$ 13,738
Amortized Cost	13,738	$ 2,644
Estimated Fair Value
Due after 10 years	14,321
Estimated Fair Value	$ 14,321	$ 2,560

Investment Securities - Matur_2

Investment Securities - Maturity Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Held-to-maturity, Amortized Cost
Due within 5 years	$ 2
Due after 5 years through 10 years	62
Due after 10 years	356,432
Amortized Cost	356,496	$ 371,517
Held-to-maturity, Estimated Fair Value
Due within 5 years	2
Due after 5 years through 10 years	63
Due after 10 years	355,946
Estimated Fair Value	$ 356,011	$ 364,922

Investment Securities - Realize

Investment Securities - Realized Gains and Losses and Proceeds from Sales (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Mar. 31, 2019
Realized gains and losses and the proceeds from sales of securities
Proceeds from sales		$ 2,741
Transfer of securities from held-to-maturity to available-for-sale	$ 11,100	11,390
Held-to-maturity debt securities
Realized gains and losses and the proceeds from sales of securities
Proceeds from sales		2,741
Gross gains		$ 2,717

Investment Securities - Securit

Investment Securities - Securities Pledged (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Pledged investment securities
Investment securities pledged to secure deposits made by state and local governments, securities sold under agreements to repurchase and transaction clearing accounts	$ 324.4	$ 308.8

Investment Securities _ Availab

Investment Securities – Available-for-Sale Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands	Mar. 31, 2019USD ($)security	Dec. 31, 2018USD ($)security
Schedule of Investments [Line Items]
12 Months or Longer Fair Value	$ 2,568	$ 2,560
12 Months or Longer Unrealized Losses	$ (30)	$ (84)
Number of Securities | security	1	1
Total Fair Value	$ 2,568	$ 2,560
Total Unrealized Losses	$ (30)	$ (84)

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, 2019USD ($)security	Dec. 31, 2018USD ($)security
Investment Securities
Less Than 12 Months Fair Value		$ 57,154
Less Than 12 Months Unrealized Losses		(254)
12 Months or Longer Fair Value	$ 175,603	220,338
12 Months or Longer Unrealized Losses	$ (3,873)	$ (9,025)
Total Number of Securities | security	56	81
Total Fair Value	$ 175,603	$ 277,492
Total Unrealized Losses	$ (3,873)	$ (9,279)

Loans Receivable and Allowanc_3

Loans Receivable and Allowance for Loan Losses - Components (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Real estate loans:
Total real estate loans	$ 1,586,689	$ 1,575,170
Other loans:
Total other loans	5,581	5,296
Less: Net unearned fees and discounts	(3,018)	(3,110)
Less: Allowance for loan losses	(2,659)	(2,642)	$ (2,554)	$ (2,548)
Total unearned fees, discounts and allowance for loan losses	(5,677)	(5,752)
Loans receivable, net	1,586,593	1,574,714
One- to four-family residential
Real estate loans:
Total real estate loans	1,541,045	1,531,149
Multi-family residential
Real estate loans:
Total real estate loans	12,052	12,151
Construction, Commercial and Other Mortgage Loans
Real estate loans:
Total real estate loans	22,092	20,780
Other loans:
Less: Allowance for loan losses	(454)	(443)	(530)	(539)
Home Equity Loans and Lines of Credit
Real estate loans:
Total real estate loans	11,500	11,090
Other loans:
Less: Allowance for loan losses	(1)	(1)	$ (1)	$ (1)
Loans on Deposit Accounts
Other loans:
Total other loans	343	357
Consumer and Other
Other loans:
Total other loans	$ 5,238	$ 4,939

Loans Receivable and Allowanc_4

Loans Receivable and Allowance for Loan Losses - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Activity in allowance for loan losses
Balance, beginning of period	$ 2,642	$ 2,548
Provision (reversal of provision) for loan losses	5	9
Allowance for loan losses on loans receivable after provision (reversal of allowance)	2,647	2,557
Charge-offs	(7)	(5)
Recoveries	19	2
Net recoveries (charge-offs)	12	(3)
Balance, end of period	2,659	2,554
Residential Mortgage
Activity in allowance for loan losses
Balance, beginning of period	1,797	1,721
Provision (reversal of provision) for loan losses	(15)	(1)
Allowance for loan losses on loans receivable after provision (reversal of allowance)	1,782	1,720
Recoveries	18
Net recoveries (charge-offs)	18
Balance, end of period	1,800	1,720
Construction, Commercial and Other Mortgage Loans
Activity in allowance for loan losses
Balance, beginning of period	443	539
Provision (reversal of provision) for loan losses	11	(9)
Allowance for loan losses on loans receivable after provision (reversal of allowance)	454	530
Balance, end of period	454	530
Home Equity Loans and Lines of Credit
Activity in allowance for loan losses
Balance, beginning of period	1	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	47	55
Provision (reversal of provision) for loan losses	4	(3)
Allowance for loan losses on loans receivable after provision (reversal of allowance)	51	52
Charge-offs	(7)	(5)
Recoveries	1	2
Net recoveries (charge-offs)	(6)	(3)
Balance, end of period	45	49
Unallocated
Activity in allowance for loan losses
Balance, beginning of period	354	232
Provision (reversal of provision) for loan losses	5	22
Allowance for loan losses on loans receivable after provision (reversal of allowance)	359	254
Balance, end of period	$ 359	$ 254

Loans Receivable and Allowanc_5

Loans Receivable and Allowance for Loan Losses - Balance in Allowance for Loan Losses and Recorded Investment (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Allowance for loan losses:
Collectively evaluated for impairment	$ 2,659	$ 2,642
Total ending allowance balance	2,659	2,642	$ 2,554	$ 2,548
Loans:
Individually evaluated for impairment	2,764	3,110
Collectively evaluated for impairment	1,586,488	1,574,246
Total ending loan balance	1,589,252	1,577,356
Residential Mortgage
Allowance for loan losses:
Collectively evaluated for impairment	1,800	1,797
Total ending allowance balance	1,800	1,797	1,720	1,721
Loans:
Individually evaluated for impairment	2,621	2,962
Collectively evaluated for impairment	1,547,510	1,537,292
Total ending loan balance	1,550,131	1,540,254
Construction, Commercial and Other Mortgage Loans
Allowance for loan losses:
Collectively evaluated for impairment	454	443
Total ending allowance balance	454	443	530	539
Loans:
Collectively evaluated for impairment	22,021	20,698
Total ending loan balance	22,021	20,698
Home Equity Loans and Lines of Credit
Allowance for loan losses:
Collectively evaluated for impairment	1	1
Total ending allowance balance	1	1	1	1
Loans:
Individually evaluated for impairment	143	148
Collectively evaluated for impairment	11,356	10,945
Total ending loan balance	11,499	11,093
Consumer and other loans
Allowance for loan losses:
Collectively evaluated for impairment	45	47
Total ending allowance balance	45	47	49	55
Loans:
Collectively evaluated for impairment	5,601	5,311
Total ending loan balance	5,601	5,311
Unallocated
Allowance for loan losses:
Collectively evaluated for impairment	359	354
Total ending allowance balance	$ 359	$ 354	$ 254	$ 232

Loans Receivable and Allowanc_6

Loans Receivable and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Impaired loans
Average Recorded Investment	$ 2,784	$ 3,555
Interest Income Recognized	9	13
One- to four-family residential
Impaired loans
Average Recorded Investment	2,638	3,393
Interest Income Recognized	9	13
Home Equity Loans and Lines of Credit
Impaired loans
Average Recorded Investment	146	$ 162
Individually Evaluated for Impairment
Impaired loans
Recorded Investment	2,764		$ 3,110
Unpaid Principal Balance	3,373		3,710
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	2,621		2,962
Unpaid Principal Balance	3,151		3,486
Individually Evaluated for Impairment | Home Equity Loans and Lines of Credit
Impaired loans
Recorded Investment	143		148
Unpaid Principal Balance	$ 222		$ 224

Loans Receivable and Allowanc_7

Loans Receivable and Allowance for Loan Losses - Delinquent and Nonaccrual Loans (Details)	3 Months Ended
	Mar. 31, 2019USD ($)loan	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Nonaccrual Loans	$ 2,176,000		$ 2,213,000
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	11		11
Nonaccrual Loans	$ 2,200,000		$ 2,200,000
Interest collected on nonaccrual loans recorded as a reduction of principal	23,000	$ 30,000
Non accrual loans, additional interest income that would have been recognized had the loans been accruing interest	$ 34,000	$ 45,000

Loans Receivable and Allowanc_8

Loans Receivable and Allowance for Loan Losses - Aging of Loans and Accrual Status (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 2,014	$ 1,247
Loans Not Past Due	1,587,238	1,576,109
Total ending loan balance	1,589,252	1,577,356
Nonaccrual Loans	2,176	2,213
One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,939	1,170
Loans Not Past Due	1,536,156	1,526,949
Total ending loan balance	1,538,095	1,528,119
Nonaccrual Loans	2,033	2,065
Multi-family residential
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	12,036	12,135
Total ending loan balance	12,036	12,135
Construction, Commercial and Other Mortgage Loans
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	22,021	20,698
Total ending loan balance	22,021	20,698
Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	69	70
Loans Not Past Due	11,430	11,023
Total ending loan balance	11,499	11,093
Nonaccrual Loans	143	148
Loans on Deposit Accounts
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	343	357
Total ending loan balance	343	357
Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	6	7
Loans Not Past Due	5,252	4,947
Total ending loan balance	5,258	4,954
30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	842	43
30 - 59 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	811	40
30 - 59 Days Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	28
30 - 59 Days Past Due | Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3	3
60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	293	325
60 - 89 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	290	292
60 - 89 Days Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due		29
60 - 89 Days Past Due | Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3	4
90 Days or More Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	879	879
90 Days or More Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	838	838
90 Days or More Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 41	$ 41

Loans Receivable and Allowanc_9

Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2019USD ($)loan	Mar. 31, 2018loan	Mar. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan
Troubled debt restructurings
Number of loans subsequently defaulted | loan			0
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 1,335,000		$ 1,335,000	$ 1,666,000
Real estate owned	$ 0		$ 0	$ 0
Accruing interest
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	3		3	4
Loans modified by troubled debt restructurings considered impaired	$ 588,000		$ 588,000	$ 897,000
Non Accrual Loans
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	4		4	4
Loans modified by troubled debt restructurings considered impaired	$ 747,000		$ 747,000	$ 769,000
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
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	0		0	0
One- to four-family residential
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 1,261,000		$ 1,261,000	$ 1,588,000
Mortgage loans in process of foreclosure, number of contracts | loan	2		2	2
Mortgage loans in process of foreclosure, total value	$ 838,000		$ 838,000	$ 838,000
One- to four-family residential | Accruing interest
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	3		3	4
Loans modified by troubled debt restructurings considered impaired	$ 588,000		$ 588,000	$ 897,000
One- to four-family residential | Non Accrual Loans
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	3		3	3
Loans modified by troubled debt restructurings considered impaired	$ 673,000		$ 673,000	$ 691,000
Home Equity Loans and Lines of Credit
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 74,000		$ 74,000	$ 78,000
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	$ 74,000		$ 74,000	$ 78,000

Loans Receivable and Allowan_10

Loans Receivable and Allowance for Loan Losses - Collateral, Sales, Serviced for Others, Directors and Executive Officers (Details)	3 Months Ended
	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Loans serviced for others	$ 29,200,000		$ 30,300,000
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	$ 20,000	$ 23,000
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	$ 2,300,000	4,500,000
Residential mortgage loans sold, recognized gains	$ 6,000	$ 43,000
Number of loans | loan			1
Residential mortgage loans held for sale			$ 309,000

Securities Sold Under Agreeme_3

Securities Sold Under Agreements to Repurchase - Summary of Repurchase Liability by Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Securities sold under agreements to repurchase
Repurchase Liability	$ 10,000	$ 30,000
Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.65%	1.66%
1 year or less
Securities sold under agreements to repurchase
Repurchase Liability	$ 10,000	$ 25,000
1 year or less | Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.65%	1.66%
Over 1 year to 2 years
Securities sold under agreements to repurchase
Repurchase Liability		$ 5,000
Over 1 year to 2 years | Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)		1.65%

Securities Sold Under Agreeme_4

Securities Sold Under Agreements to Repurchase - Summary of Securities Pledged (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
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	$ 28,557
Fair Value of Securities	28,131
Repurchase Liability	10,000
Amount at Risk	$ 18,557
Weighted Average Months to Maturity	9 months

Offsetting of Financial Liabi_3

Offsetting of Financial Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Securities sold under agreements to repurchase
Gross Amount of Recognized Liabilities	$ 10,000	$ 30,000
Net Amount of Liabilities Presented in the Balance Sheet	10,000	30,000
Gross amount not offset in the balance sheet
Financial Instruments	$ 10,000	$ 30,000

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Pension Plan | Minimum
Pension and Other Postretirement Benefit Contributions
Requisite service period for receiving benefits under the plan	1 year
Supplemental Employee Retirement Plan (SERP)
Net periodic benefit cost (income) for the year:
Service cost	$ 25	$ 20
Interest cost	41	37
Net periodic benefit cost (income)	$ 66	$ 57

Employee Stock Ownership Plan -

Employee Stock Ownership Plan - Loan, Expense and Shares (Details) - USD ($)	Jul. 10, 2009	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Employee Stock Ownership Plan
ESOP expense		$ 333,000	$ 376,000
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		$ 334,000	$ 376,000
Allocated shares		458,274		446,041
Unearned shares		477,096		489,329
Total ESOP shares		935,370		935,370
Fair value of unearned shares, in thousands		$ 12,839,000		$ 12,713,000
ESOP | Prime rate
Employee Stock Ownership Plan
Variable interest rate		Wall Street Journal Prime Rate

Employee Stock Ownership Plan_2

Employee Stock Ownership Plan - Nonqualified ESOP Restoration Plan (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
ESOP restoration | Certain executives
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits
Accrued (reversed) benefits	$ 57,000	$ 95,000

Share-Based Compensation - Plan

Share-Based Compensation - Plan Provisions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-Based Compensation
Compensation expense	$ 86	$ 67
Income tax benefit	$ 23	$ 18
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 ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Common Stock
Stock option activity
Exercised (in shares)	74,560
Stock option activity
Shares of common stock issued in exchange for stock options and common shares	28,197
Common shares exchanged	46,363
Stock Options
Stock option activity
Balance at beginning of period (in shares)	337,654	411,543	411,543
Exercised (in shares)	74,560	18,008
Balance at end of period (in shares)	263,094	393,535	337,654	411,543
Options vested and exercisable (in shares)	263,094
Weighted Average Exercise Price
Balance at beginning of period (in dollars per share)	$ 17.51	$ 17.48	$ 17.48
Exercised (in dollars per share)	17.36	17.36
Balance at end of period (in dollars per share)	17.55	$ 17.49	$ 17.51	$ 17.48
Options vested and exercisable (in dollars per share)	$ 17.55
Remaining Contractual Life
Options outstanding	1 year 6 months 4 days	2 years 5 months 23 days	1 year 8 months 27 days	2 years 8 months 23 days
Options vested and exercisable	1 year 6 months 4 days
Aggregate Intrinsic Value
Beginning of period	$ 2,859	$ 5,509	$ 5,509
Exercised	788	237
End of period	2,461	4,789	$ 2,859	$ 5,509
Options vested and exercisable	2,461
Stock option activity
Intrinsic value of stock options exercised	788	237
Proceeds received from stock options exercised	1,294	313
Tax benefits realized from stock options exercised	171	$ 42
Unrecognized compensation costs	$ 0
Stock Options | Common Stock
Stock option activity
Exercised (in shares)	74,560

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Awards (Details) - USD ($)	Mar. 07, 2019	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Restricted Stock
Restricted Stock Awards
Non-vested at beginning of period (in shares)		16,424	10,804
Granted (in shares)		10,366	10,019
Vested (in shares)		3,340
Non-vested at end of period (in shares)		23,450	20,823
Weighted Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 30.26	$ 29.16
Granted (in dollars per share)		27.30	30.73
Vested (in dollars per share)		30.73
Non-vested at end of period (in dollars per share)		$ 28.89	$ 29.92
Unrecognized compensation
Vesting period		3 years
Unrecognized compensation costs		$ 584,000
Restricted Stock Units Based on a Performance Condition
Restricted Stock Awards
Non-vested at beginning of period (in shares)		23,538	11,525
Granted (in shares)		8,292	12,018
Non-vested at end of period (in shares)		31,830	23,543
Weighted Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 30.14	$ 29.53
Granted (in dollars per share)		27.30	30.73
Non-vested at end of period (in dollars per share)		$ 29.40	$ 30.14
Unrecognized compensation
Unrecognized compensation costs		$ 405,000
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)		5,884	2,881
Granted (in shares)		2,073	3,005
Non-vested at end of period (in shares)		7,957	5,886
Weighted Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share)		$ 26.42	$ 24.44
Granted (in dollars per share)		24.45	28.32
Non-vested at end of period (in dollars per share)		$ 25.91	$ 26.42
Unrecognized compensation
Unrecognized compensation costs		$ 104,000
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)	2.45%
Closing stock price (in dollars per share)	$ 27.30			$ 25.98
Annualized volatility (as a percent)	15.10%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share
Net income	$ 6,524	$ 4,820
Income allotted to participating securities	(35)	(15)
Net income available to common shareholders	$ 6,489	$ 4,805
Weighted-average number of shares used in:
Basic earnings per share (in shares)	9,169,256	9,284,496
Dilutive common stock equivalents:
Stock options and restricted stock units (in shares)	143,883	199,681
Diluted earnings per share (in shares)	9,313,139	9,484,177
Net income per common share, basic (in dollars per share)	$ 0.71	$ 0.52
Net income per common share, diluted (in dollars per share)	$ 0.70	$ 0.51

Other Comprehensive Income an_3

Other Comprehensive Income and Loss - Changes in Components of Accumulated Other Comprehensive Income and Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	$ (235,079)	$ (234,854)
Other comprehensive (gain) loss, net of taxes	(490)	49
Balances at end of period	(238,838)	(232,372)
Accumulated Other Comprehensive Loss
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	7,809	5,694
Other comprehensive (gain) loss, net of taxes	(490)	49
Amounts reclassified from retained earnings		(1,135)
Net current period other comprehensive (gain) loss	(490)	1,184
Balances at end of period	7,319	6,878
Unfunded Pension Liability
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	7,721	5,657
Amounts reclassified from retained earnings		(1,126)
Net current period other comprehensive (gain) loss		1,126
Balances at end of period	7,721	6,783
Unrealized Loss on Securities
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	88	37
Other comprehensive (gain) loss, net of taxes	(490)	49
Amounts reclassified from retained earnings		(9)
Net current period other comprehensive (gain) loss	(490)	58
Balances at end of period	$ (402)	$ 95

Other Comprehensive Income an_4

Other Comprehensive Income and Loss - Tax Effect on Each Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Tax effect on each component of other comprehensive loss
Pretax amount	$ (668)	$ 66
Tax	178	(17)
After Tax Amount	(490)	49
Accumulated Other Comprehensive Loss
Tax effect on each component of other comprehensive loss
After Tax Amount	(490)	49
Unrealized Loss on Securities
Tax effect on each component of other comprehensive loss
Pretax amount	(668)	66
Tax	178	(17)
After Tax Amount	$ (490)	$ 49

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues
Revenue from contracts with customers	$ 373	$ 361
Other revenue	137	123
Total	438	415
Total	72	69
Total	510	484
Service Fees on Loan and Deposit Accounts
Revenues
Revenue from contracts with customers	327	320
Other revenue	111	95
Total	438	415
Other
Revenues
Revenue from contracts with customers	46	41
Other revenue	26	28
Total	$ 72	$ 69

Leases - Lease Costs (Details)

Leases - Lease Costs (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases
Election to use package of lease practical expedients	true
Lease costs:
Operating lease costs	$ 783
Short-term lease costs	6
Variable lease costs	25
Total lease costs	$ 814

Leases - Future Minimum Rental

Leases - Future Minimum Rental Commitments Under Noncancellable Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Future minimum rental commitments:
2019	$ 2,115
2020	2,463
2021	1,977
2022	1,808
2023	1,520
Thereafter	4,227
Total	14,110
Less interest	1,317
Present value of leases	$ 12,793	$ 13,200

Leases - Other Related Informat

Leases - Other Related Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases
Cash paid for amounts included in measurement of lease liabilities	$ 773
New ROU operating assets	$ 12,995
Weighted-average remaining lease term (years)	6 years 6 months 4 days
Weighted-average discount rate	2.91%

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Estimated Fair Values (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets
Investment securities available for sale, at fair value	$ 14,321	$ 2,560
Investment securities held to maturity	356,011	364,922
Carrying Amount
Assets
Cash and cash equivalents	23,667	47,063
Investment securities available for sale, at fair value	14,321	2,560
Investment securities held to maturity	356,496	371,517
Loans held for sale		309
Loans receivable, net	1,586,593	1,574,714
FHLB stock	6,663	8,093
FRB stock	3,116	3,114
Accrued interest receivable	5,472	5,274
Interest rate contracts	4	5
Liabilities
Deposits	1,667,379	1,629,164
Advances from the Federal Home Loan Bank	104,500	142,200
Securities sold under agreements to repurchase	10,000	30,000
Accrued interest payable	268	243
Interest rate contracts	4	5
Estimated Fair Value
Assets
Cash and cash equivalents	23,667	47,063
Investment securities available for sale, at fair value	14,321	2,560
Investment securities held to maturity	356,011	364,922
Loans held for sale		319
Loans receivable, net	1,609,304	1,553,672
FHLB stock	6,663	8,093
FRB stock	3,116	3,114
Accrued interest receivable	5,472	5,274
Interest rate contracts	4	5
Liabilities
Deposits	1,666,152	1,626,587
Advances from the Federal Home Loan Bank	104,411	141,874
Securities sold under agreements to repurchase	9,935	29,876
Accrued interest payable	268	243
Interest rate contracts	4	5
Estimated Fair Value | Level 1
Assets
Cash and cash equivalents	23,667	47,063
Accrued interest receivable	3	12
Estimated Fair Value | Level 2
Assets
Investment securities available for sale, at fair value	14,321	2,560
Investment securities held to maturity	356,011	364,219
Loans held for sale		319
FHLB stock	6,663	8,093
FRB stock	3,116	3,114
Accrued interest receivable	998	960
Interest rate contracts	4	5
Liabilities
Deposits	1,210,356	1,238,023
Advances from the Federal Home Loan Bank	104,411	141,874
Securities sold under agreements to repurchase	9,935	29,876
Accrued interest payable	47	111
Interest rate contracts	4	5
Estimated Fair Value | Level 3
Assets
Investment securities held to maturity		703
Loans receivable, net	1,609,304	1,553,672
Accrued interest receivable	4,471	4,302
Liabilities
Deposits	455,796	388,564
Accrued interest payable	$ 221	$ 132

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets and Liabilities Measured at Fair Value on Recurring Basis
Available-for-sale investments	$ 14,321	$ 2,560
Fair Value, Measurements, Recurring
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	4	5
Interest rate contracts - liabilities	(4)	(5)
Available-for-sale investments	14,321	2,560
Fair Value, Measurements, Recurring | Level 2
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	4	5
Interest rate contracts - liabilities	(4)	(5)
Available-for-sale investments	$ 14,321	$ 2,560

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Nonrecurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Measurements, Nonrecurring
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value	$ 0	$ 0

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Apr. 25, 2019	Mar. 31, 2019	Mar. 31, 2018
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)		$ 0.22	$ 0.20
Subsequent event
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)	$ 0.22