Territorial Bancorp (TBNK) 10-Q 8 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Document and Entity Information
Entity Registrant Name	Territorial Bancorp Inc.
Entity Central Index Key	0001447051
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		9,677,910
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 29,410	$ 47,063
Investment securities available for sale, at fair value	8,882	2,560
Investment securities held to maturity, at amortized cost (fair value of $377,023 and $364,922 at September 30, 2019 and December 31, 2018, respectively)	369,387	371,517
Loans held for sale	553	309
Loans receivable, net	1,592,863	1,574,714
Federal Home Loan Bank stock, at cost	9,839	8,093
Federal Reserve Bank stock, at cost	3,128	3,114
Accrued interest receivable	5,494	5,274
Premises and equipment, net	4,330	4,823
Right-of-use asset, net	11,178
Bank-owned life insurance	44,909	45,066
Deferred income tax assets, net	3,048	4,136
Prepaid expenses and other assets	2,748	2,537
Total assets	2,085,769	2,069,206
Liabilities:
Deposits	1,605,194	1,629,164
Advances from the Federal Home Loan Bank	183,900	142,200
Securities sold under agreements to repurchase	10,000	30,000
Accounts payable and accrued expenses	23,242	23,346
Lease liability	11,733
Income taxes payable	2,175	2,407
Advance payments by borrowers for taxes and insurance	3,923	7,010
Total liabilities	1,840,167	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 9,674,922 and 9,645,955 shares at September 30, 2019 and December 31, 2018, respectively	97	97
Additional paid-in capital	64,732	65,090
Unearned ESOP shares	(4,526)	(4,893)
Retained earnings	192,520	182,594
Accumulated other comprehensive loss	(7,221)	(7,809)
Total stockholders' equity	245,602	235,079
Total liabilities and stockholders' equity	$ 2,085,769	$ 2,069,206

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Investment securities held to maturity, fair value (in dollars)	$ 377,023	$ 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	9,674,922	9,645,955
Common stock, shares outstanding	9,674,922	9,645,955

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income:
Loans	$ 15,864	$ 15,038	$ 47,475	$ 44,829
Investment securities	2,865	3,032	8,583	9,283
Other investments	219	208	709	582
Total interest income	18,948	18,278	56,767	54,694
Interest expense:
Deposits	3,382	2,899	10,120	8,040
Advances from the Federal Home Loan Bank	973	493	2,425	1,371
Securities sold under agreements to repurchase	42	125	173	376
Total interest expense	4,397	3,517	12,718	9,787
Net interest income	14,551	14,761	44,049	44,907
Provision (reversal of provision) for loan losses	111	(50)	65	19
Net interest income after provision for loan losses	14,440	14,811	43,984	44,888
Noninterest income:
Service fees on loan and deposit accounts	504	470	1,427	1,372
Income on bank-owned life insurance	215	216	632	647
Gain on sale of investment securities	123		2,910	45
Gain on sale of loans	1,205	8	1,211	61
Other	55	52	635	200
Total noninterest income	2,102	746	6,815	2,325
Noninterest expense:
Salaries and employee benefits	5,586	5,655	17,002	16,798
Occupancy	1,610	1,599	4,780	4,689
Equipment	1,039	1,061	3,150	3,000
Federal deposit insurance premiums	1	150	288	457
Other general and administrative expenses	1,165	1,038	3,466	3,326
Total noninterest expense	9,401	9,503	28,686	28,270
Income before income taxes	7,141	6,054	22,113	18,943
Income taxes	1,775	1,268	5,163	4,374
Net income	$ 5,366	$ 4,786	$ 16,950	$ 14,569
Basic earnings per share (in dollars per share)	$ 0.58	$ 0.52	$ 1.83	$ 1.57
Diluted earnings per share (in dollars per share)	0.57	0.51	1.81	1.54
Cash dividends declared per common share (in dollars per share)	$ 0.22	$ 0.22	$ 0.76	$ 0.72
Basic weighted-average shares outstanding (in shares)	9,212,119	9,212,913	9,184,741	9,238,827
Diluted weighted-average shares outstanding (in shares)	9,295,729	9,377,403	9,309,420	9,424,992

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 5,366	$ 4,786	$ 16,950	$ 14,569
Change in unrealized gain or loss on securities, net of tax	(21)	(19)	588	(79)
Other comprehensive income (loss), net of tax	(21)	(19)	588	(79)
Comprehensive income	$ 5,345	$ 4,767	$ 17,538	$ 14,490

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Unearned ESOP Shares	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2017	$ 99	$ 73,050	$ (5,383)	$ 172,782	$ (5,694)	$ 234,854
Balance (in shares) at Dec. 31, 2017	9,915,058
Increase (Decrease) in Stockholders' Equity
Net income				14,569		14,569
Other comprehensive income (loss)					(79)	(79)
Reclassification of deferred taxes				1,135	(1,135)
Cash dividends declared ($0.22 per share, for the three months ended September 30, 2019 and 2018 and $0.76 and $0.72 per share, for the nine months ended September 30, 2019 and 2018, respectively)				(6,687)		(6,687)
Share-based compensation		256				256
Share-based compensation (in shares)	4,401
Allocation of ESOP shares (12,233 shares for the three months ended September 30, 2019 and 2018 and 36,699 shares for the nine months ended September 30, 2019 and 2018, respectively)		751	367			1,118
Repurchase of shares of common stock	$ (3)	(9,391)				(9,394)
Repurchase of shares of common stock (in shares)	(306,888)
Exercise of options for common stock	$ 1	1,197				1,198
Exercise of options for common stock (in shares)	69,008
Balance at Sep. 30, 2018	$ 97	65,863	(5,016)	181,799	(6,908)	235,835
Balance (in shares) at Sep. 30, 2018	9,681,579
Balance at Jun. 30, 2018	$ 98	67,584	(5,138)	179,044	(6,889)	234,699
Balance (in shares) at Jun. 30, 2018	9,749,697
Increase (Decrease) in Stockholders' Equity
Net income				4,786		4,786
Other comprehensive income (loss)					(19)	(19)
Cash dividends declared ($0.22 per share, for the three months ended September 30, 2019 and 2018 and $0.76 and $0.72 per share, for the nine months ended September 30, 2019 and 2018, respectively)				(2,031)		(2,031)
Share-based compensation		121				121
Share-based compensation (in shares)	1,200
Allocation of ESOP shares (12,233 shares for the three months ended September 30, 2019 and 2018 and 36,699 shares for the nine months ended September 30, 2019 and 2018, respectively)		247	122			369
Repurchase of shares of common stock	$ (1)	(2,089)				(2,090)
Repurchase of shares of common stock (in shares)	(69,318)
Balance at Sep. 30, 2018	$ 97	65,863	(5,016)	181,799	(6,908)	235,835
Balance (in shares) at Sep. 30, 2018	9,681,579
Balance at Dec. 31, 2018	$ 97	65,090	(4,893)	182,594	(7,809)	235,079
Balance (in shares) at Dec. 31, 2018	9,645,955
Increase (Decrease) in Stockholders' Equity
Net income				16,950		16,950
Other comprehensive income (loss)					588	588
Adoption of lease accounting standard				(10)		(10)
Cash dividends declared ($0.22 per share, for the three months ended September 30, 2019 and 2018 and $0.76 and $0.72 per share, for the nine months ended September 30, 2019 and 2018, respectively)				(7,014)		(7,014)
Share-based compensation		494				494
Share-based compensation (in shares)	6,541
Allocation of ESOP shares (12,233 shares for the three months ended September 30, 2019 and 2018 and 36,699 shares for the nine months ended September 30, 2019 and 2018, respectively)		661	367			1,028
Repurchase of shares of common stock	$ (2)	(5,042)				(5,044)
Repurchase of shares of common stock (in shares)	(180,944)
Exercise of options for common stock	$ 2	3,529				3,531
Exercise of options for common stock (in shares)	203,370
Balance at Sep. 30, 2019	$ 97	64,732	(4,526)	192,520	(7,221)	245,602
Balance (in shares) at Sep. 30, 2019	9,674,922
Balance at Jun. 30, 2019	$ 97	64,335	(4,649)	189,189	(7,200)	241,772
Balance (in shares) at Jun. 30, 2019	9,664,793
Increase (Decrease) in Stockholders' Equity
Net income				5,366		5,366
Other comprehensive income (loss)					(21)	(21)
Cash dividends declared ($0.22 per share, for the three months ended September 30, 2019 and 2018 and $0.76 and $0.72 per share, for the nine months ended September 30, 2019 and 2018, respectively)				(2,035)		(2,035)
Share-based compensation		123				123
Allocation of ESOP shares (12,233 shares for the three months ended September 30, 2019 and 2018 and 36,699 shares for the nine months ended September 30, 2019 and 2018, respectively)		227	123			350
Repurchase of shares of common stock		(321)				(321)
Repurchase of shares of common stock (in shares)	(11,071)
Exercise of options for common stock		368				368
Exercise of options for common stock (in shares)	21,200
Balance at Sep. 30, 2019	$ 97	$ 64,732	$ (4,526)	$ 192,520	$ (7,221)	$ 245,602
Balance (in shares) at Sep. 30, 2019	9,674,922

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Stockholders' Equity, Share Data
Cash dividends declared per common share (in dollars per share)	$ 0.22	$ 0.22	$ 0.76	$ 0.72
Common Stock
Consolidated Statements of Stockholders' Equity, Share Data
Allocation of ESOP shares, shares	12,233	12,233	36,699	36,699

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 16,950	$ 14,569
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	65	19
Depreciation and amortization	876	946
Deferred income tax expense	874	911
Amortization of fees, discounts, and premiums, net	(419)	(324)
Amortization of right-of-use asset	2,076
Origination of loans held for sale	(3,845)	(7,996)
Proceeds from sales of loans held for sale	3,631	8,460
Gain on sale of loans, net	(1,211)	(61)
Net gain on sale of real estate owned		(4)
Gain on sale of investment securities available for sale	(153)
Gain on sale of investment securities held to maturity	(2,757)	(45)
Net loss on disposal of premises and equipment		3
ESOP expense	1,028	1,118
Share-based compensation expense	494	256
Increase in accrued interest receivable	(220)	(268)
Net increase in bank-owned life insurance	(631)	(647)
Net decrease in prepaid expenses and other assets	54	1,213
Net increase (decrease) in accounts payable and accrued expenses	245	(6,044)
Net decrease in lease liability	(2,000)
Net decrease in advance payments by borrowers for taxes and insurance	(3,087)	(2,586)
Net decrease in income taxes receivable		858
Net decrease in income taxes payable	(232)	(68)
Net cash from operating activities	11,738	10,310
Cash flows from investing activities:
Purchases of investment securities held to maturity	(7,845)	(14,983)
Principal repayments on investment securities held to maturity	28,043	34,270
Principal repayments on investment securities available for sale	917	171
Proceeds from sale of investment securities held to maturity	3,527	4,462
Proceeds from sale of investment securities available for sale	5,117
Loan originations, net of principal repayments on loans receivable	(47,118)	(57,568)
Purchases of Federal Home Loan Bank stock	(21,642)	(4,192)
Proceeds from redemption of Federal Home Loan Bank stock	19,896	4,688
Purchases of Federal Reserve Bank stock	(14)	(3)
Proceeds from bank-owned life insurance	788
Proceeds from sale of real estate owned		50
Purchases of premises and equipment	(383)	(233)
Net cash from investing activities	(18,714)	(33,338)
Cash flows from financing activities:
Net (decrease) increase in deposits	(23,970)	46,098
Proceeds from advances from the Federal Home Loan Bank	539,100	91,000
Repayments of advances from the Federal Home Loan Bank	(497,400)	(107,200)
Repayments of securities sold under agreements to repurchase	(20,000)
Purchases of Fed Funds	10	10
Sales of Fed Funds	(10)	(10)
Proceeds from issuance of common stock	170
Repurchases of common stock	(1,597)	(8,196)
Cash dividends paid	(6,980)	(6,662)
Net cash from financing activities	(10,677)	15,040
Net decrease in cash and cash equivalents	(17,653)	(7,988)
Cash and cash equivalents at beginning of the period	47,063	32,089
Cash and cash equivalents at end of the period	29,410	24,101
Cash paid for:
Interest on deposits and borrowings	12,772	10,122
Income taxes	4,521	2,673
Supplemental disclosure of noncash investing and financing activities:
Company stock acquired through stock swap and net settlement transactions	3,361	1,198
Company stock repurchased through swap and net settlement transactions	3,447	1,198
Loans transferred to real estate owned		46
Loans receivable transferred to held for sale	29,229
Loans held for sale securitized into investment securities	30,145
Dividends declared, not yet paid	34	$ 25
Establishment of right-of-use asset	13,254
Establishment of lease liability	13,733
Transfer of securities from held-to-maturity to available-for-sale	$ 11,390

Organization

Organization	9 Months Ended
	Sep. 30, 2019
Organization
Organization	(1) Organization In 2009, Territorial Savings Bank (the 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.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2019
Basis of Presentation
Basis of Presentation	(2) 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. During the three months ended September 30, 2019, the Company securitized fixed-rate mortgage loans with a book value of $29.2 million into Freddie Mac mortgage-backed securities with a fair value of $30.1 million. The transaction was accounted for as a sale since the control of the mortgage loans was transferred to Freddie Mac. Securitizations are accounted for as sales and a gain or loss is recognized for the difference between the fair value of the mortgage-backed securities, loan servicing rights and other assets received in the transaction and the book value of the loans sold. The mortgage-backed securities received in securitizations may be classified as held-to-maturity or available-for-sale. .

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 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 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. On October 16, 2019, the FASB voted to adopt a proposal that delays the effective date of the amendment for smaller reporting companies, as defined by the Securities and Exchange Commission, to fiscal years beginning after December 15, 2022. The Company is a smaller reporting company. 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, at January 1, 2019, it elected to transfer $11.4 million of held-to-maturity securities to the available-for-sale classification and 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	9 Months Ended
	Sep. 30, 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: September 30, December 31, (Dollars in thousands) 2019 2018 Cash and due from banks $ 9,554 $ 9,771 Interest-earning deposits in other banks 19,856 37,292 Cash and cash equivalents $ 29,410 $ 47,063 Interest-earning deposits in other banks consist primarily of deposits at the Federal Reserve Bank of San Francisco.

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 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 September 30, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 8,170 $ 712 $ — $ 8,882 Total $ 8,170 $ 712 $ — $ 8,882 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 369,387 $ 8,370 $ (734) $ 377,023 Total $ 369,387 $ 8,370 $ (734) $ 377,023 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 September 30, 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 8,170 8,882 Total $ 8,170 $ 8,882 Held-to-maturity: Due within 5 years $ 1 $ 1 Due after 5 years through 10 years 63 64 Due after 10 years 369,323 376,958 Total $ 369,387 $ 377,023 Realized gains and losses and the proceeds from sales of held-to-maturity and available-for-sale securities are shown in the table below. Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2019 2018 2019 2018 Proceeds from sales $ 4,308 $ — $ 8,644 $ 4,462 Gross gains 123 — 2,910 45 Gross losses — — — — During the nine months ended September 30, 2019, the Company sold its $75,000 investment in its trust preferred security, PreTSL XXIII, and $746,000 of held-to-maturity mortgage-backed securities, and recorded gains of $2.7 million and $40,000, respectively. The sale of the trust preferred security, which had a significant deterioration in the issuer’s credit rating, and the sale of the mortgage-backed securities, for which the Company had already collected a substantial portion of the outstanding purchased principal (at least 85%), were in accordance with the Investments – Debt and Equity Securities topic of the FASB ASC and do not taint management’s assertion of its intent to hold the remaining securities in the held-to-maturity portfolio to maturity. As of January 1, 2019, the Company transferred securities with an amortized cost 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 $190.6 million and $308.8 million at September 30, 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 September 30, 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) September 30, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ — $ — $ — $ — — $ — $ — Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 18,891 $ (86) $ 42,358 $ (648) 29 $ 61,249 $ (734) 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 September 30, 2019 and December 31, 2018. During the three months ended September 30, 2019, the Company securitized fixed-rate first mortgage loans with a book value of $29.2 million into Freddie Mac mortgage-backed securities to increase liquidity. The securitization transaction increased investment securities and lowered loans receivable. The securitization transaction was accounted for by recording the mortgage-backed securities at a fair value of $30.1 million in accordance with the FASB ASC. Mortgage servicing assets of $265,000 were also recorded on the transaction and a net gain of $1.2 million was recognized on the securitization.

Loans Receivable and Allowance

Loans Receivable and Allowance for Loan Losses	9 Months Ended
	Sep. 30, 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: September 30, December 31, (Dollars in thousands) 2019 2018 Real estate loans: First mortgages: One- to four-family residential $ 1,544,025 $ 1,531,149 Multi-family residential 10,054 12,151 Construction, commercial and other 22,925 20,780 Home equity loans and lines of credit 10,933 11,090 Total real estate loans 1,587,937 1,575,170 Other loans: Loans on deposit accounts 782 357 Consumer and other loans 9,385 4,939 Total other loans 10,167 5,296 Less: Net unearned fees and discounts (2,517) (3,110) Allowance for loan losses (2,724) (2,642) Total unearned fees, discounts and allowance for loan losses (5,241) (5,752) Loans receivable, net $ 1,592,863 $ 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 September 30, 2019: Balance, beginning of period $ 1,769 $ 411 $ 1 $ 44 $ 391 $ 2,616 Provision (reversal of provision) for loan losses (11) 90 — 15 17 111 1,758 501 1 59 408 2,727 Charge-offs — — — (5) — (5) Recoveries — — — 2 — 2 Net charge-offs — — — (3) — (3) Balance, end of period $ 1,758 $ 501 $ 1 $ 56 $ 408 $ 2,724 Nine months ended September 30, 2019: Balance, beginning of period $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Provision (reversal of provision) for loan losses (57) 58 — 10 54 65 1,740 501 1 57 408 2,707 Charge-offs — — — (21) — (21) Recoveries 18 — — 20 — 38 Net recoveries (charge-offs) 18 — — (1) — 17 Balance, end of period $ 1,758 $ 501 $ 1 $ 56 $ 408 $ 2,724 Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended September 30, 2018: Balance, beginning of period $ 1,760 $ 547 $ 1 $ 45 $ 261 $ 2,614 Provision (reversal of provision) for loan losses — (47) — 3 (6) (50) 1,760 500 1 48 255 2,564 Charge-offs — — — (7) — (7) Recoveries — — — 2 — 2 Net charge-offs — — — (5) — (5) Balance, end of period $ 1,760 $ 500 $ 1 $ 43 $ 255 $ 2,559 Nine months ended September 30, 2018: Balance, beginning of period $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 Provision (reversal of provision) for loan losses 33 (39) — 2 23 19 1,754 500 1 57 255 2,567 Charge-offs — — — (19) — (19) Recoveries 6 — — 5 — 11 Net recoveries (charge-offs) 6 — — (14) — (8) Balance, end of period $ 1,760 $ 500 $ 1 $ 43 $ 255 $ 2,559 Management considers the allowance for loan losses at September 30, 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 September 30, 2019: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,758 501 1 56 408 2,724 Total ending allowance balance $ 1,758 $ 501 $ 1 $ 56 $ 408 $ 2,724 Loans: Ending loan balance: Individually evaluated for impairment $ 1,351 $ — $ 94 $ — $ — $ 1,445 Collectively evaluated for impairment 1,550,244 22,874 10,840 10,184 — 1,594,142 Total ending loan balance $ 1,551,595 $ 22,874 $ 10,934 $ 10,184 $ — $ 1,595,587 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 September 30, 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,351 $ 1,789 Home equity loans and lines of credit 94 179 Total $ 1,445 $ 1,968 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 For the Nine Months Ended September 30, September 30, Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,364 $ 8 $ 1,391 $ 25 Home equity loans and lines of credit 96 — 100 — Total $ 1,460 $ 8 $ 1,491 $ 25 2018: With no related allowance recorded: One- to four-family residential mortgages $ 3,170 $ 13 $ 3,211 $ 39 Home equity loans and lines of credit 154 — 158 — Total $ 3,324 $ 13 $ 3,369 $ 39 There were no loans individually evaluated for impairment with a related allowance for loan loss as of September 30, 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 seven nonaccrual loans with a book value of $864,000 as of September 30, 2019 and 11 nonaccrual loans with a book value of $2.2 million as of December 31, 2018. The Company collected interest on nonaccrual loans of $51,000 and $81,000 during the nine months ended September 30, 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 $51,000 and $112,000 during the nine months ended September 30, 2019 and 2018, respectively, had the loans been accruing interest. At September 30, 2019, the Company had one loan for $1,000 that was 90 days or more past due and still accruing interest. The Company did not have any loans 90 days or more past due and still accruing interest as of 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 September 30, 2019: One- to four-family residential mortgages $ 1,017 $ 35 $ — $ 1,052 $ 1,540,511 $ 1,541,563 $ 770 $ — Multi-family residential mortgages — — — — 10,032 10,032 — — Construction, commercial and other mortgages — — — — 22,874 22,874 — — Home equity loans and lines of credit — 27 — 27 10,907 10,934 94 — Loans on deposit accounts — — — — 782 782 — — Consumer and other 2 — 1 3 9,399 9,402 — 1 Total $ 1,019 $ 62 $ 1 $ 1,082 $ 1,594,505 $ 1,595,587 $ 864 $ 1 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 nine months ended September 30, 2019 or 2018. There were no new troubled debt restructurings within the 12 months ended September 30, 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 September 30, 2019: One- to four-family residential mortgages 3 $ 581 3 $ 636 $ 1,217 Home equity loans and lines of credit — — 1 67 67 Total 3 $ 581 4 $ 703 $ 1,284 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 September 30, 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 September 30, 2019, we had no commitments to lend any additional funds to these borrowers. The Company had no real estate owned as of September 30, 2019 or December 31, 2018. There were no loans in the process of foreclosure at September 30, 2019. 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 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 nine months ended September 30, 2019 and 2018, the Company sold mortgage loans held for sale with principal balances of $3.6 million and $8.4 million, respectively, and recognized gains of $18,000 and $61,000, respectively. The Company had one loan held for sale for $553,000 at September 30, 2019 and one loan held for sale for $309,000 at December 31, 2018. During the nine months ended September 30, 2019, the Company securitized fixed-rate first mortgage loans with a book value of $29.2 million and received mortgage-backed securities with a fair market value of $30.1 million. The Company retained the servicing of these loans and recorded mortgage servicing assets with a fair market value of $265,000. A net gain of $1.2 million was recognized on the transaction. The Company serviced loans for others with principal balances of $56.9 million at September 30, 2019 and $30.3 million at December 31, 2018. Of these amounts, $30.7 million and $1.5 million of loan balances relate to securitizations for which the Company continues to hold the related mortgage-backed securities at September 30, 2019 and December 31, 2018, respectively. The amount of contractually specified servicing fees earned for the nine-month periods ended September 30, 2019 and 2018 was $71,000 and $67,000, respectively. The amount of contractually specified servicing fees earned for the three-month periods ended September 30, 2019 and 2018 was $31,000 and $22,000, respectively. The fees are reported in service fees on loan and deposit accounts in the consolidated statements of income.

Securities Sold Under Agreement

Securities Sold Under Agreements to Repurchase	9 Months Ended
	Sep. 30, 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: September 30, 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 September 30, 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 $ 13,242 $ 13,080 $ 10,000 $ 3,242 3

Offsetting of Financial Liabili

Offsetting of Financial Liabilities	9 Months Ended
	Sep. 30, 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 September 30, 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	9 Months Ended
	Sep. 30, 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 SERP Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2019 2018 2019 2018 Net periodic benefit cost for the period: Service cost $ 26 $ 19 $ 77 $ 59 Interest cost 41 38 122 113 Expected return on plan assets — — — — Amortization of prior service cost — — — — Recognized actuarial loss — — — — Recognized curtailment loss — — — — Net periodic benefit cost $ 67 $ 57 $ 199 $ 172 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	9 Months Ended
	Sep. 30, 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 September 30, 2019 and 2018 amounted to $349,000 and $370,000, respectively. Compensation expense recognized for the nine months ended September 30, 2019 and 2018 amounted to $1.0 million and $1.2 million, respectively. Shares held by the ESOP trust were as follows: September 30, December 31, 2019 2018 Allocated shares 454,574 446,041 Unearned shares 452,630 489,329 Total ESOP shares 907,204 935,370 Fair value of unearned shares, in thousands $ 12,936 $ 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 September 30, 2019 and 2018, we accrued $67,000 and $56,000, respectively, for the ESOP restoration plan. For the nine months ended September 30, 2019 and 2018, we accrued $246,000 and $167,000, respectively, for the ESOP restoration plan.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 Compensation expense $ 123 $ 120 $ 494 $ 256 Income tax benefit 33 33 135 70 Shares of our common stock issued under the 2010 Equity Incentive Plan shall come from authorized shares. The maximum number of shares that will be awarded under the plan will be 1,862,637 shares. Stock Options The table below presents the stock option activity for the nine months ended September 30, 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 203,370 17.36 — 2,282 Forfeited — — — — Expired — — — — Options outstanding at September 30, 2019 134,284 $ 17.74 1.10 $ 1,455 Options outstanding at December 31, 2017 411,543 $ 17.48 2.73 $ 5,509 Granted — — — — Exercised 69,008 17.36 — 920 Forfeited — — — — Expired — — — — Options outstanding at September 30, 2018 342,535 $ 17.51 1.99 $ 4,124 Options vested and exercisable at September 30, 2019 $ $ 1,455 The following summarizes certain stock option activity of the Company: For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 Intrinsic value of stock options exercised $ 251 $ — $ 2,282 $ 920 Proceeds received from stock options exercised 368 — 3,531 1,198 Tax benefits realized from stock options exercised 60 — 484 220 Total fair value of stock options that vested — 35 — 35 During the nine months ended September 30, 2019, we issued 85,269 shares of common stock, net, in exchange for 203,370 stock options and 118,101 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 September 30, 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 6,541 30.14 Forfeited — — Nonvested at September 30, 2019 20,249 $ 28.78 Nonvested at December 31, 2017 10,806 $ 29.16 Granted 10,019 30.73 Vested 4,401 28.63 Forfeited — — Nonvested at September 30, 2018 16,424 $ 30.26 During the nine months ended September 30, 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 September 30, 2019, the Company had $438,000 of unrecognized compensation costs related to restricted stock. During the nine months ended September 30, 2019, the Company issued 12,438 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 12,438 27.30 Vested — — Forfeited — — Nonvested at September 30, 2019 35,976 $ 29.16 Nonvested at December 31, 2017 11,520 $ 29.53 Granted 12,018 30.73 Vested — — Forfeited — — Nonvested at September 30, 2018 23,538 $ 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 September 30, 2019, the Company had $437,000 of unrecognized compensation costs related to these PRSUs. Performance will be measured over a three-year performance period and will be cliff vested. During the nine months ended September 30, 2019, the Company issued 3,110 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 5,884 $ 26.42 Granted 3,110 24.45 Vested — — Forfeited — — Nonvested at September 30, 2019 8,994 $ 25.74 Nonvested at December 31, 2017 2,879 $ 24.44 Granted 3,005 28.32 Vested — — Forfeited — — Nonvested at September 30, 2018 5,884 $ 26.42 As of September 30, 2019, the Company had $79,000 of unrecognized compensation costs related to the PRSUs that are based on a market condition. Performance will be measured over a three-year performance period and will be cliff vested.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income $ 5,366 $ 4,786 $ 16,950 $ 14,569 Income allocated to participating securities (38) (24) (112) (66) Net income available to common shareholders $ 5,328 $ 4,762 $ 16,838 $ 14,503 Weighted-average number of shares used in: Basic earnings per share 9,212,119 9,212,913 9,184,741 9,238,827 Dilutive common stock equivalents: Stock options and restricted stock units 83,610 164,490 124,679 186,165 Diluted earnings per share 9,295,729 9,377,403 9,309,420 9,424,992 Net income per common share, basic $ 0.58 $ 0.52 $ 1.83 $ 1.57 Net income per common share, diluted $ 0.57 $ 0.51 $ 1.81 $ 1.54

Other Comprehensive Income and

Other Comprehensive Income and Loss	9 Months Ended
	Sep. 30, 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 (Gain)/Loss on (Dollars in thousands) Liability Securities Total Three months ended September 30, 2019 Balances at beginning of period $ 7,721 $ (521) $ 7,200 Other comprehensive loss, net of taxes — 21 21 Net current period other comprehensive loss — 21 21 Balances at end of period $ 7,721 $ (500) $ 7,221 Three months ended September 30, 2018 Balances at beginning of period $ 6,783 $ 106 $ 6,889 Other comprehensive loss, net of taxes — 19 19 Net current period other comprehensive loss — 19 19 Balances at end of period $ 6,783 $ 125 $ 6,908 Nine months ended September 30, 2019 Balances at beginning of period $ 7,721 $ 88 $ 7,809 Other comprehensive income, net of taxes — (588) (588) Net current period other comprehensive income — (588) (588) Balances at end of period $ 7,721 $ (500) $ 7,221 Nine months ended September 30, 2018 Balances at beginning of period $ 5,657 $ 37 $ 5,694 Other comprehensive loss, net of taxes — 79 79 Amounts reclassified from retained earnings 1,126 9 1,135 Net current period other comprehensive loss 1,126 88 1,214 Balances at end of period $ 6,783 $ 125 $ 6,908 The table below presents the tax effect on each component of accumulated other comprehensive income and loss: Three Months Ended September 30, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain)/loss on securities $ 28 $ (7) $ 21 $ 26 $ (7) $ 19 Total $ 28 $ (7) $ 21 $ 26 $ (7) $ 19 Nine Months Ended September 30, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain)/loss on securities $ (802) $ 214 $ (588) $ 108 $ (29) $ 79 Total $ (802) $ 214 $ (588) $ 108 $ (29) $ 79

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 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 September 30, 2019 Revenue from contracts with customers $ 347 $ 37 $ 384 Other revenue 157 18 175 Total $ 504 $ 55 $ 559 Three months ended September 30, 2018 Revenue from contracts with customers $ 334 $ 22 $ 356 Other revenue 136 30 166 Total $ 470 $ 52 $ 522 Nine months ended September 30, 2019 Revenue from contracts with customers $ 1,047 $ 137 $ 1,184 Other revenue 380 498 878 Total $ 1,427 $ 635 $ 2,062 Nine months ended September 30, 2018 Revenue from contracts with customers $ 1,045 $ 115 $ 1,160 Other revenue 327 85 412 Total $ 1,372 $ 200 $ 1,572

Leases

Leases	9 Months Ended
	Sep. 30, 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 lease costs and other information for the periods indicated: Three Months Ended Nine Months Ended (Dollars in thousands) September 30, 2019 September 30, 2019 Lease Costs: Operating lease costs $ 777 $ 2,342 Short-term lease costs 21 37 Variable lease costs 40 93 Total lease costs $ 838 $ 2,472 Cash paid for amounts included in measurement of lease liabilities $ 721 $ 2,266 ROU assets obtained in exchange for new operating lease liabilities $ 246 $ 13,254 At September 30, 2019, future minimum rental commitments under noncancellable operating leases are as follows: (Dollars in thousands) 2019 $ 676 2020 2,590 2021 2,053 2022 1,810 2023 1,523 Thereafter 4,228 Total 12,880 Less present value discount 1,147 Present value of leases $ 11,733 The table below presents other lease related information as of September 30, 2019: September 30, 2019 Weighted-average remaining lease term (years) Weighted-average discount rate %

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 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 September 30, 2019 Assets Cash and cash equivalents $ 29,410 $ 29,410 $ 29,410 $ — $ — Investment securities available for sale 8,882 8,882 — 8,882 — Investment securities held to maturity 369,387 377,023 — 377,023 — Loans held for sale 553 564 — 564 — Loans receivable, net 1,592,863 1,640,941 — — 1,640,941 FHLB stock 9,839 9,839 — 9,839 — FRB stock 3,128 3,128 — 3,128 — Accrued interest receivable 5,494 5,494 18 1,017 4,459 Interest rate contracts 13 13 — 13 — Liabilities Deposits 1,605,194 1,605,914 — 1,160,561 445,353 Advances from the Federal Home Loan Bank 183,900 184,934 — 184,934 — Securities sold under agreements to repurchase 10,000 9,990 — 9,990 — Accrued interest payable 190 190 — 57 133 Interest rate contracts 13 13 — 13 — 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 September 30, 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 September 30, 2019 Interest rate contracts — assets $ — $ 13 $ — $ 13 Interest rate contracts — liabilities — (13) — (13) Investment securities available for sale — 8,882 — 8,882 December 31, 2018 Interest rate contracts — assets $ — $ 5 $ — $ 5 Interest rate contracts — liabilities — (5) — (5) Investment securities available for sale — 2,560 — 2,560 The table below presents the balance of assets measured at fair value on a nonrecurring basis as of September 30, 2019. There were no assets measured at fair value on a nonrecurring basis as of December 31, 2018. Fair Value (Dollars in thousands) Adjustment Date Level 1 Level 2 Level 3 Total Total Losses September 30, 2019 Mortgage servicing assets 9/30/2019 $ — $ — $ 452 $ 452 $ (16) Mortgage servicing assets are valued using a discounted cash flow model. Assumptions used in the model include mortgage prepayment speeds, discount rates and cost of servicing. Losses on mortgage servicing assets are included in service fees on loan and deposit accounts in the consolidated statements of income. The table below presents the significant unobservable inputs for Level 3 nonrecurring fair value measurements: Unobservable (Dollars in thousands) Fair Value Valuation Technique Input Value September 30, 2019: Mortgage servicing assets $ 452 Discounted cash flow Discount rate 10.25% Prepayment speed (CPR) 13.63 - 16.36 Annual cost to service (per loan, in dollars) $ 60

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events
Subsequent Events	(17) Subsequent Events On October 24, 2019, the Board of Directors of Territorial Bancorp Inc. declared a quarterly cash dividend of $0.23 per share of common stock. The dividend is expected to be paid on November 21, 2019 to stockholders of record as of November 7, 2019.

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	9 Months Ended
	Sep. 30, 2019
Cash and Cash Equivalents
Schedule of balances of cash and cash equivalents	September 30, December 31, (Dollars in thousands) 2019 2018 Cash and due from banks $ 9,554 $ 9,771 Interest-earning deposits in other banks 19,856 37,292 Cash and cash equivalents $ 29,410 $ 47,063

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 8,170 $ 712 $ — $ 8,882 Total $ 8,170 $ 712 $ — $ 8,882 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 369,387 $ 8,370 $ (734) $ 377,023 Total $ 369,387 $ 8,370 $ (734) $ 377,023 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 8,170 8,882 Total $ 8,170 $ 8,882 Held-to-maturity: Due within 5 years $ 1 $ 1 Due after 5 years through 10 years 63 64 Due after 10 years 369,323 376,958 Total $ 369,387 $ 377,023
Schedule of realized gains and losses and proceeds from sales of securities held to maturity	Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2019 2018 2019 2018 Proceeds from sales $ 4,308 $ — $ 8,644 $ 4,462 Gross gains 123 — 2,910 45 Gross losses — — — —
Summary of investment securities in an unrealized loss position	Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Number of Unrealized Description of securities Fair Value Losses Fair Value Losses Securities Fair Value Losses (Dollars in thousands) September 30, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ — $ — $ — $ — — $ — $ — Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 18,891 $ (86) $ 42,358 $ (648) 29 $ 61,249 $ (734) 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)	9 Months Ended
	Sep. 30, 2019
Loans Receivable and Allowance for Loan Losses
Schedule of components of loans receivable	September 30, December 31, (Dollars in thousands) 2019 2018 Real estate loans: First mortgages: One- to four-family residential $ 1,544,025 $ 1,531,149 Multi-family residential 10,054 12,151 Construction, commercial and other 22,925 20,780 Home equity loans and lines of credit 10,933 11,090 Total real estate loans 1,587,937 1,575,170 Other loans: Loans on deposit accounts 782 357 Consumer and other loans 9,385 4,939 Total other loans 10,167 5,296 Less: Net unearned fees and discounts (2,517) (3,110) Allowance for loan losses (2,724) (2,642) Total unearned fees, discounts and allowance for loan losses (5,241) (5,752) Loans receivable, net $ 1,592,863 $ 1,574,714
Schedule of activity in allowance for loan losses on loans receivable and by portfolio segment	Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended September 30, 2019: Balance, beginning of period $ 1,769 $ 411 $ 1 $ 44 $ 391 $ 2,616 Provision (reversal of provision) for loan losses (11) 90 — 15 17 111 1,758 501 1 59 408 2,727 Charge-offs — — — (5) — (5) Recoveries — — — 2 — 2 Net charge-offs — — — (3) — (3) Balance, end of period $ 1,758 $ 501 $ 1 $ 56 $ 408 $ 2,724 Nine months ended September 30, 2019: Balance, beginning of period $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Provision (reversal of provision) for loan losses (57) 58 — 10 54 65 1,740 501 1 57 408 2,707 Charge-offs — — — (21) — (21) Recoveries 18 — — 20 — 38 Net recoveries (charge-offs) 18 — — (1) — 17 Balance, end of period $ 1,758 $ 501 $ 1 $ 56 $ 408 $ 2,724 Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended September 30, 2018: Balance, beginning of period $ 1,760 $ 547 $ 1 $ 45 $ 261 $ 2,614 Provision (reversal of provision) for loan losses — (47) — 3 (6) (50) 1,760 500 1 48 255 2,564 Charge-offs — — — (7) — (7) Recoveries — — — 2 — 2 Net charge-offs — — — (5) — (5) Balance, end of period $ 1,760 $ 500 $ 1 $ 43 $ 255 $ 2,559 Nine months ended September 30, 2018: Balance, beginning of period $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 Provision (reversal of provision) for loan losses 33 (39) — 2 23 19 1,754 500 1 57 255 2,567 Charge-offs — — — (19) — (19) Recoveries 6 — — 5 — 11 Net recoveries (charge-offs) 6 — — (14) — (8) Balance, end of period $ 1,760 $ 500 $ 1 $ 43 $ 255 $ 2,559
Schedule of balance in allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method	Construction, Home Commercial Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals September 30, 2019: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,758 501 1 56 408 2,724 Total ending allowance balance $ 1,758 $ 501 $ 1 $ 56 $ 408 $ 2,724 Loans: Ending loan balance: Individually evaluated for impairment $ 1,351 $ — $ 94 $ — $ — $ 1,445 Collectively evaluated for impairment 1,550,244 22,874 10,840 10,184 — 1,594,142 Total ending loan balance $ 1,551,595 $ 22,874 $ 10,934 $ 10,184 $ — $ 1,595,587 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 September 30, 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,351 $ 1,789 Home equity loans and lines of credit 94 179 Total $ 1,445 $ 1,968 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 For the Nine Months Ended September 30, September 30, Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,364 $ 8 $ 1,391 $ 25 Home equity loans and lines of credit 96 — 100 — Total $ 1,460 $ 8 $ 1,491 $ 25 2018: With no related allowance recorded: One- to four-family residential mortgages $ 3,170 $ 13 $ 3,211 $ 39 Home equity loans and lines of credit 154 — 158 — Total $ 3,324 $ 13 $ 3,369 $ 39
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 September 30, 2019: One- to four-family residential mortgages $ 1,017 $ 35 $ — $ 1,052 $ 1,540,511 $ 1,541,563 $ 770 $ — Multi-family residential mortgages — — — — 10,032 10,032 — — Construction, commercial and other mortgages — — — — 22,874 22,874 — — Home equity loans and lines of credit — 27 — 27 10,907 10,934 94 — Loans on deposit accounts — — — — 782 782 — — Consumer and other 2 — 1 3 9,399 9,402 — 1 Total $ 1,019 $ 62 $ 1 $ 1,082 $ 1,594,505 $ 1,595,587 $ 864 $ 1 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 September 30, 2019: One- to four-family residential mortgages 3 $ 581 3 $ 636 $ 1,217 Home equity loans and lines of credit — — 1 67 67 Total 3 $ 581 4 $ 703 $ 1,284 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)	9 Months Ended
	Sep. 30, 2019
Securities Sold Under Agreements to Repurchase
Summary of securities sold under agreements to repurchase	September 30, 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 $ 13,242 $ 13,080 $ 10,000 $ 3,242 3

Offsetting of Financial Liabi_2

Offsetting of Financial Liabilities (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 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)	9 Months Ended
	Sep. 30, 2019
Employee Benefit Plans
Schedule of components of net periodic benefit cost	SERP SERP Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2019 2018 2019 2018 Net periodic benefit cost for the period: Service cost $ 26 $ 19 $ 77 $ 59 Interest cost 41 38 122 113 Expected return on plan assets — — — — Amortization of prior service cost — — — — Recognized actuarial loss — — — — Recognized curtailment loss — — — — Net periodic benefit cost $ 67 $ 57 $ 199 $ 172

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	9 Months Ended
	Sep. 30, 2019
Employee Stock Ownership Plan
Schedule of shares held by the ESOP trust	September 30, December 31, 2019 2018 Allocated shares 454,574 446,041 Unearned shares 452,630 489,329 Total ESOP shares 907,204 935,370 Fair value of unearned shares, in thousands $ 12,936 $ 12,713

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Schedule of compensation expense and related tax benefit for all share-based awards	Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 Compensation expense $ 123 $ 120 $ 494 $ 256 Income tax benefit 33 33 135 70
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 203,370 17.36 — 2,282 Forfeited — — — — Expired — — — — Options outstanding at September 30, 2019 134,284 $ 17.74 1.10 $ 1,455 Options outstanding at December 31, 2017 411,543 $ 17.48 2.73 $ 5,509 Granted — — — — Exercised 69,008 17.36 — 920 Forfeited — — — — Expired — — — — Options outstanding at September 30, 2018 342,535 $ 17.51 1.99 $ 4,124 Options vested and exercisable at September 30, 2019 $ $ 1,455
Summary of certain stock option activity	For the Three Months Ended For the Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 Intrinsic value of stock options exercised $ 251 $ — $ 2,282 $ 920 Proceeds received from stock options exercised 368 — 3,531 1,198 Tax benefits realized from stock options exercised 60 — 484 220 Total fair value of stock options that vested — 35 — 35
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 6,541 30.14 Forfeited — — Nonvested at September 30, 2019 20,249 $ 28.78 Nonvested at December 31, 2017 10,806 $ 29.16 Granted 10,019 30.73 Vested 4,401 28.63 Forfeited — — Nonvested at September 30, 2018 16,424 $ 30.26
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 12,438 27.30 Vested — — Forfeited — — Nonvested at September 30, 2019 35,976 $ 29.16 Nonvested at December 31, 2017 11,520 $ 29.53 Granted 12,018 30.73 Vested — — Forfeited — — Nonvested at September 30, 2018 23,538 $ 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 5,884 $ 26.42 Granted 3,110 24.45 Vested — — Forfeited — — Nonvested at September 30, 2019 8,994 $ 25.74 Nonvested at December 31, 2017 2,879 $ 24.44 Granted 3,005 28.32 Vested — — Forfeited — — Nonvested at September 30, 2018 5,884 $ 26.42

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share
Schedule of information used to compute basic and diluted earnings per share	Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income $ 5,366 $ 4,786 $ 16,950 $ 14,569 Income allocated to participating securities (38) (24) (112) (66) Net income available to common shareholders $ 5,328 $ 4,762 $ 16,838 $ 14,503 Weighted-average number of shares used in: Basic earnings per share 9,212,119 9,212,913 9,184,741 9,238,827 Dilutive common stock equivalents: Stock options and restricted stock units 83,610 164,490 124,679 186,165 Diluted earnings per share 9,295,729 9,377,403 9,309,420 9,424,992 Net income per common share, basic $ 0.58 $ 0.52 $ 1.83 $ 1.57 Net income per common share, diluted $ 0.57 $ 0.51 $ 1.81 $ 1.54

Other Comprehensive Income an_2

Other Comprehensive Income and Loss (Tables)	9 Months Ended
	Sep. 30, 2019
Other Comprehensive Income and Loss
Schedule of changes in components of accumulated other comprehensive income and loss, net of taxes	Unfunded Unrealized Pension (Gain)/Loss on (Dollars in thousands) Liability Securities Total Three months ended September 30, 2019 Balances at beginning of period $ 7,721 $ (521) $ 7,200 Other comprehensive loss, net of taxes — 21 21 Net current period other comprehensive loss — 21 21 Balances at end of period $ 7,721 $ (500) $ 7,221 Three months ended September 30, 2018 Balances at beginning of period $ 6,783 $ 106 $ 6,889 Other comprehensive loss, net of taxes — 19 19 Net current period other comprehensive loss — 19 19 Balances at end of period $ 6,783 $ 125 $ 6,908 Nine months ended September 30, 2019 Balances at beginning of period $ 7,721 $ 88 $ 7,809 Other comprehensive income, net of taxes — (588) (588) Net current period other comprehensive income — (588) (588) Balances at end of period $ 7,721 $ (500) $ 7,221 Nine months ended September 30, 2018 Balances at beginning of period $ 5,657 $ 37 $ 5,694 Other comprehensive loss, net of taxes — 79 79 Amounts reclassified from retained earnings 1,126 9 1,135 Net current period other comprehensive loss 1,126 88 1,214 Balances at end of period $ 6,783 $ 125 $ 6,908
Schedule of tax effect on each component of accumulated other comprehensive loss	Three Months Ended September 30, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain)/loss on securities $ 28 $ (7) $ 21 $ 26 $ (7) $ 19 Total $ 28 $ (7) $ 21 $ 26 $ (7) $ 19 Nine Months Ended September 30, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain)/loss on securities $ (802) $ 214 $ (588) $ 108 $ (29) $ 79 Total $ (802) $ 214 $ (588) $ 108 $ (29) $ 79

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2019 Revenue from contracts with customers $ 347 $ 37 $ 384 Other revenue 157 18 175 Total $ 504 $ 55 $ 559 Three months ended September 30, 2018 Revenue from contracts with customers $ 334 $ 22 $ 356 Other revenue 136 30 166 Total $ 470 $ 52 $ 522 Nine months ended September 30, 2019 Revenue from contracts with customers $ 1,047 $ 137 $ 1,184 Other revenue 380 498 878 Total $ 1,427 $ 635 $ 2,062 Nine months ended September 30, 2018 Revenue from contracts with customers $ 1,045 $ 115 $ 1,160 Other revenue 327 85 412 Total $ 1,372 $ 200 $ 1,572

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases
Schedule of lease costs	The table below presents lease costs and other information for the periods indicated: Three Months Ended Nine Months Ended (Dollars in thousands) September 30, 2019 September 30, 2019 Lease Costs: Operating lease costs $ 777 $ 2,342 Short-term lease costs 21 37 Variable lease costs 40 93 Total lease costs $ 838 $ 2,472 Cash paid for amounts included in measurement of lease liabilities $ 721 $ 2,266 ROU assets obtained in exchange for new operating lease liabilities $ 246 $ 13,254
Schedule of future minimum rental commitments under noncancellable operating leases	At September 30, 2019, future minimum rental commitments under noncancellable operating leases are as follows: (Dollars in thousands) 2019 $ 676 2020 2,590 2021 2,053 2022 1,810 2023 1,523 Thereafter 4,228 Total 12,880 Less present value discount 1,147 Present value of leases $ 11,733
Schedule of other lease related information	The table below presents other lease related information as of September 30, 2019: September 30, 2019 Weighted-average remaining lease term (years) Weighted-average discount rate %

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Schedule of estimated fair values of financial instruments	Carrying Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 September 30, 2019 Assets Cash and cash equivalents $ 29,410 $ 29,410 $ 29,410 $ — $ — Investment securities available for sale 8,882 8,882 — 8,882 — Investment securities held to maturity 369,387 377,023 — 377,023 — Loans held for sale 553 564 — 564 — Loans receivable, net 1,592,863 1,640,941 — — 1,640,941 FHLB stock 9,839 9,839 — 9,839 — FRB stock 3,128 3,128 — 3,128 — Accrued interest receivable 5,494 5,494 18 1,017 4,459 Interest rate contracts 13 13 — 13 — Liabilities Deposits 1,605,194 1,605,914 — 1,160,561 445,353 Advances from the Federal Home Loan Bank 183,900 184,934 — 184,934 — Securities sold under agreements to repurchase 10,000 9,990 — 9,990 — Accrued interest payable 190 190 — 57 133 Interest rate contracts 13 13 — 13 — 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 September 30, 2019 Interest rate contracts — assets $ — $ 13 $ — $ 13 Interest rate contracts — liabilities — (13) — (13) Investment securities available for sale — 8,882 — 8,882 December 31, 2018 Interest rate contracts — assets $ — $ 5 $ — $ 5 Interest rate contracts — liabilities — (5) — (5) Investment securities available for sale — 2,560 — 2,560
Schedule of Significant unobservable inputs for Level 3 nonrecurring fair value measurements	Unobservable (Dollars in thousands) Fair Value Valuation Technique Input Value September 30, 2019: Mortgage servicing assets $ 452 Discounted cash flow Discount rate 10.25% Prepayment speed (CPR) 13.63 - 16.36 Annual cost to service (per loan, in dollars) $ 60
Fair Value, Measurements, Nonrecurring
Schedule of balance of assets measured at fair value on a nonrecurring basis	Fair Value (Dollars in thousands) Adjustment Date Level 1 Level 2 Level 3 Total Total Losses September 30, 2019 Mortgage servicing assets 9/30/2019 $ — $ — $ 452 $ 452 $ (16)

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Millions	Sep. 30, 2019USD ($)
Debt Instrument [Line Items]
Fair market value of received mortgage-backed securities	$ 30.1
Fixed-rate mortgage loans
Debt Instrument [Line Items]
Book value	$ 29.2

Recently Issued Accounting Pr_2

Recently Issued Accounting Pronouncements (Details) - USD ($)	Jan. 01, 2019	Sep. 30, 2019
Basis of Presentation
Right-of-use asset, net	$ 12,700,000	$ 11,178,000
Lease liability	13,200,000	11,733,000
Transfer of securities from held-to-maturity to available-for-sale	11,400,000	$ 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	Sep. 30, 2019	Dec. 31, 2018
Cash and Cash Equivalents
Cash and due from banks	$ 9,554	$ 9,771
Interest-earning deposits in other banks	19,856	37,292
Cash and cash equivalents	$ 29,410	$ 47,063

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Fair Values of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Available-for-sale:
Amortized Cost	$ 8,170	$ 2,644
Gross Unrealized Gains	712
Gross Unrealized Losses		(84)
Estimated Fair Value	8,882	2,560
Mortgage-backed securities
Available-for-sale:
Amortized Cost	8,170	2,644
Gross Unrealized Gains	712
Gross Unrealized Losses		(84)
Estimated Fair Value	$ 8,882	$ 2,560

Investment Securities - Amort_2

Investment Securities - Amortized Cost and Fair Values of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Held-to-maturity:
Amortized Cost	$ 369,387	$ 371,517
Gross Unrealized Gains	8,370	2,684
Gross Unrealized Losses	(734)	(9,279)
Estimated Fair Value	377,023	364,922
Mortgage-backed securities
Held-to-maturity:
Amortized Cost	369,387	371,442
Gross Unrealized Gains	8,370	2,056
Gross Unrealized Losses	(734)	(9,279)
Estimated Fair Value	$ 377,023	364,219
Trust preferred securities
Held-to-maturity:
Amortized Cost		75
Gross Unrealized Gains		628
Estimated Fair Value		$ 703

Investment Securities - Maturit

Investment Securities - Maturity Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Amortized Cost
Due after 10 years	$ 8,170
Amortized Cost	8,170	$ 2,644
Estimated Fair Value
Due after 10 years	8,882
Estimated Fair Value	$ 8,882	$ 2,560

Investment Securities - Matur_2

Investment Securities - Maturity Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Held-to-maturity, Amortized Cost
Due within 5 years	$ 1
Due after 5 years through 10 years	63
Due after 10 years	369,323
Amortized Cost	369,387	$ 371,517
Held-to-maturity, Estimated Fair Value
Due within 5 years	1
Due after 5 years through 10 years	64
Due after 10 years	376,958
Estimated Fair Value	$ 377,023	$ 364,922

Investment Securities - Realize

Investment Securities - Realized Gains and Losses and Proceeds from Sales (Details) - USD ($)	Jan. 01, 2019	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Realized gains and losses and the proceeds from sales of securities
Proceeds from sales			$ 3,527,000	$ 4,462,000
Transfer of securities from held-to-maturity to available-for-sale	$ 11,400,000		11,390,000
Trust preferred securities
Realized gains and losses and the proceeds from sales of securities
Proceeds from sales			75,000
Gross gains			2,700,000
Mortgage-backed securities
Realized gains and losses and the proceeds from sales of securities
Proceeds from sales			746,000
Gross gains			$ 40,000
Minimum | Mortgage-backed securities
Realized gains and losses and the proceeds from sales of securities
Portion of outstanding purchased principal already collected			85.00%
Held-to-maturity debt securities
Realized gains and losses and the proceeds from sales of securities
Proceeds from sales		$ 4,308,000	$ 8,644,000	4,462,000
Gross gains		$ 123,000	$ 2,910,000	$ 45,000

Investment Securities - Securit

Investment Securities - Securities Pledged (Details) - USD ($) $ in Millions	Sep. 30, 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	$ 190.6	$ 308.8

Investment Securities _ Availab

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

Investment Securities - Held-to

Investment Securities - Held-to-Maturity Unrealized Loss Position Summary (Details) - Mortgage-backed securities $ in Thousands	Sep. 30, 2019USD ($)security	Dec. 31, 2018USD ($)security
Investment Securities
Less Than 12 Months Fair Value	$ 18,891	$ 57,154
Less Than 12 Months Unrealized Losses	(86)	(254)
12 Months or Longer Fair Value	42,358	220,338
12 Months or Longer Unrealized Losses	$ (648)	$ (9,025)
Total Number of Securities | security	29	81
Total Fair Value	$ 61,249	$ 277,492
Total Unrealized Losses	$ (734)	$ (9,279)

Investment Securities - Mortgag

Investment Securities - Mortgage-Backed Securities (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Schedule of Investments [Line Items]
Fair market value of received mortgage-backed securities	$ 30,100,000	$ 30,100,000
Mortgage servicing assets	265,000	265,000
Net gain recognized on the securitization	1,200,000	1,200,000
Fixed-rate mortgage loans
Schedule of Investments [Line Items]
Book value	$ 29,200,000	$ 29,200,000

Loans Receivable and Allowanc_3

Loans Receivable and Allowance for Loan Losses - Components (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Real estate loans:
Total other loans	$ 10,167		$ 5,296
Total real estate loans	1,587,937		1,575,170
Other loans:
Total other loans	10,167		5,296
Less: Net unearned fees and discounts	(2,517)		(3,110)
Less: Allowance for loan losses	(2,724)	$ (2,616)	(2,642)	$ (2,559)	$ (2,614)	$ (2,548)
Total unearned fees, discounts and allowance for loan losses	(5,241)		(5,752)
Loans receivable, net	1,592,863		1,574,714
One- to four-family residential
Real estate loans:
Total real estate loans	1,544,025		1,531,149
Multi-family residential
Real estate loans:
Total real estate loans	10,054		12,151
Construction, Commercial and Other Mortgage Loans
Real estate loans:
Total real estate loans	22,925		20,780
Other loans:
Less: Allowance for loan losses	(501)	(411)	(443)	(500)	(547)	(539)
Home Equity Loans and Lines of Credit
Real estate loans:
Total real estate loans	10,933		11,090
Other loans:
Less: Allowance for loan losses	(1)	$ (1)	(1)	$ (1)	$ (1)	$ (1)
Loans on Deposit Accounts
Real estate loans:
Total other loans	782		357
Other loans:
Total other loans	782		357
Consumer and Other
Real estate loans:
Total other loans	9,385		4,939
Other loans:
Total other loans	$ 9,385		$ 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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Activity in allowance for loan losses
Balance, beginning of period	$ 2,616	$ 2,614	$ 2,642	$ 2,548
Provision (reversal of provision) for loan losses	111	(50)	65	19
Allowance for loan losses on loans receivable after provision (reversal of allowance)	2,727	2,564	2,707	2,567
Charge-offs	(5)	(7)	(21)	(19)
Recoveries	2	2	38	11
Net recoveries (charge-offs)	(3)	(5)	17	(8)
Balance, end of period	2,724	2,559	2,724	2,559
Residential Mortgage
Activity in allowance for loan losses
Balance, beginning of period	1,769	1,760	1,797	1,721
Provision (reversal of provision) for loan losses	(11)		(57)	33
Allowance for loan losses on loans receivable after provision (reversal of allowance)	1,758	1,760	1,740	1,754
Recoveries			18	6
Net recoveries (charge-offs)			18	6
Balance, end of period	1,758	1,760	1,758	1,760
Construction, Commercial and Other Mortgage Loans
Activity in allowance for loan losses
Balance, beginning of period	411	547	443	539
Provision (reversal of provision) for loan losses	90	(47)	58	(39)
Allowance for loan losses on loans receivable after provision (reversal of allowance)	501	500	501	500
Balance, end of period	501	500	501	500
Home Equity Loans and Lines of Credit
Activity in allowance for loan losses
Balance, beginning of period	1	1	1	1
Allowance for loan losses on loans receivable after provision (reversal of allowance)	1	1	1	1
Balance, end of period	1	1	1	1
Consumer and other loans
Activity in allowance for loan losses
Balance, beginning of period	44	45	47	55
Provision (reversal of provision) for loan losses	15	3	10	2
Allowance for loan losses on loans receivable after provision (reversal of allowance)	59	48	57	57
Charge-offs	(5)	(7)	(21)	(19)
Recoveries	2	2	20	5
Net recoveries (charge-offs)	(3)	(5)	(1)	(14)
Balance, end of period	56	43	56	43
Unallocated
Activity in allowance for loan losses
Balance, beginning of period	391	261	354	232
Provision (reversal of provision) for loan losses	17	(6)	54	23
Allowance for loan losses on loans receivable after provision (reversal of allowance)	408	255	408	255
Balance, end of period	$ 408	$ 255	$ 408	$ 255

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	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Allowance for loan losses:
Collectively evaluated for impairment	$ 2,724		$ 2,642
Total ending allowance balance	2,724	$ 2,616	2,642	$ 2,559	$ 2,614	$ 2,548
Loans:
Individually evaluated for impairment	1,445		3,110
Collectively evaluated for impairment	1,594,142		1,574,246
Total ending loan balance	1,595,587		1,577,356
Residential Mortgage
Allowance for loan losses:
Collectively evaluated for impairment	1,758		1,797
Total ending allowance balance	1,758	1,769	1,797	1,760	1,760	1,721
Loans:
Individually evaluated for impairment	1,351		2,962
Collectively evaluated for impairment	1,550,244		1,537,292
Total ending loan balance	1,551,595		1,540,254
Construction, Commercial and Other Mortgage Loans
Allowance for loan losses:
Collectively evaluated for impairment	501		443
Total ending allowance balance	501	411	443	500	547	539
Loans:
Collectively evaluated for impairment	22,874		20,698
Total ending loan balance	22,874		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	1	1
Loans:
Individually evaluated for impairment	94		148
Collectively evaluated for impairment	10,840		10,945
Total ending loan balance	10,934		11,093
Consumer and other loans
Allowance for loan losses:
Collectively evaluated for impairment	56		47
Total ending allowance balance	56	44	47	43	45	55
Loans:
Collectively evaluated for impairment	10,184		5,311
Total ending loan balance	10,184		5,311
Unallocated
Allowance for loan losses:
Collectively evaluated for impairment	408		354
Total ending allowance balance	$ 408	$ 391	$ 354	$ 255	$ 261	$ 232

Loans Receivable and Allowanc_6

Loans Receivable and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Impaired loans
Average Recorded Investment	$ 1,460	$ 3,324	$ 1,491	$ 3,369
Interest Income Recognized	8	13	25	39
One- to four-family residential
Impaired loans
Average Recorded Investment	1,364	3,170	1,391	3,211
Interest Income Recognized	8	13	25	39
Home Equity Loans and Lines of Credit
Impaired loans
Average Recorded Investment	96	$ 154	100	$ 158
Individually Evaluated for Impairment
Impaired loans
Recorded Investment	1,445		1,445		$ 3,110
Unpaid Principal Balance	1,968		1,968		3,710
Loans individually evaluated for impairment with a related allowance for loan loss	0		0		0
Individually Evaluated for Impairment | One- to four-family residential
Impaired loans
Recorded Investment	1,351		1,351		2,962
Unpaid Principal Balance	1,789		1,789		3,486
Individually Evaluated for Impairment | Home Equity Loans and Lines of Credit
Impaired loans
Recorded Investment	94		94		148
Unpaid Principal Balance	$ 179		$ 179		$ 224

Loans Receivable and Allowanc_7

Loans Receivable and Allowance for Loan Losses - Delinquent and Nonaccrual Loans (Details)	9 Months Ended
	Sep. 30, 2019USD ($)loan	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Nonaccrual Loans	$ 864,000		$ 2,213,000
90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable
Number of loans | loan	1		0
Fixed-rate mortgage loans | 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	7		11
Nonaccrual Loans	$ 864,000		$ 2,200,000
Interest collected on nonaccrual loans recorded as a reduction of principal	51,000	$ 81,000
Non accrual loans, additional interest income that would have been recognized had the loans been accruing interest	$ 51,000	$ 112,000

Loans Receivable and Allowanc_8

Loans Receivable and Allowance for Loan Losses - Aging of Loans and Accrual Status (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 1,082	$ 1,247
Loans Not Past Due	1,594,505	1,576,109
Total ending loan balance	1,595,587	1,577,356
Nonaccrual Loans	864	2,213
Loans 90 Days or More Past Due and Still Accruing	1
One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,052	1,170
Loans Not Past Due	1,540,511	1,526,949
Total ending loan balance	1,541,563	1,528,119
Nonaccrual Loans	770	2,065
Multi-family residential
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	10,032	12,135
Total ending loan balance	10,032	12,135
Construction, Commercial and Other Mortgage Loans
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	22,874	20,698
Total ending loan balance	22,874	20,698
Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	27	70
Loans Not Past Due	10,907	11,023
Total ending loan balance	10,934	11,093
Nonaccrual Loans	94	148
Loans on Deposit Accounts
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	782	357
Total ending loan balance	782	357
Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3	7
Loans Not Past Due	9,399	4,947
Total ending loan balance	9,402	4,954
Loans 90 Days or More Past Due and Still Accruing	1
30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,019	43
30 - 59 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,017	40
30 - 59 Days Past Due | Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	2	3
60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	62	325
60 - 89 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	35	292
60 - 89 Days Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	27	29
60 - 89 Days Past Due | Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due		4
90 Days or More Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1	879
90 Days or More Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due		838
90 Days or More Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due		$ 41
90 Days or More Past Due | Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 1

Loans Receivable and Allowanc_9

Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Details)	9 Months Ended		12 Months Ended
	Sep. 30, 2019USD ($)loan	Sep. 30, 2018loan	Sep. 30, 2019USD ($)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	$ 1,284,000		$ 1,284,000	$ 1,666,000
Real estate owned	$ 0		$ 0	$ 0
Mortgage loans in process of foreclosure, number of contracts | loan	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	$ 581,000		$ 581,000	$ 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	$ 703,000		$ 703,000	$ 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	$ 1,217,000		$ 1,217,000	$ 1,588,000
Mortgage loans in process of foreclosure, number of contracts | loan				2
Mortgage loans in process of foreclosure, total value				$ 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	$ 581,000		$ 581,000	$ 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	$ 636,000		$ 636,000	$ 691,000
Home Equity Loans and Lines of Credit
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 67,000		$ 67,000	$ 78,000
Mortgage loans in process of foreclosure, number of contracts | loan				1
Mortgage loans in process of foreclosure, total value				$ 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	$ 67,000		$ 67,000	$ 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		9 Months Ended
	Sep. 30, 2019USD ($)loan	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)loan	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Loans serviced for others	$ 56,900,000		$ 56,900,000		$ 30,300,000
Fair market value of received mortgage-backed securities	30,100,000		30,100,000
Mortgage servicing assets	265,000		265,000
Net gain recognized on the securitization	1,200,000		1,200,000
Loans serviced for others, securitization for which the company continues to hold the related mortgage-backed securities	30,700,000		30,700,000		$ 1,500,000
Loans serviced for others, amount of contractually specified servicing fees earned	31,000	$ 22,000	71,000	$ 67,000
Gain on sale of loans	$ 1,200,000		$ 1,200,000
Fixed-rate mortgage loans | Maximum
Accounts, Notes, Loans and Financing Receivable
Loan to value ratio (as a percent)	80.00%		80.00%
Residential Mortgage Loans Held For Sale
Accounts, Notes, Loans and Financing Receivable
Residential mortgage loans sold, loan amount			$ 3,600,000	8,400,000
Residential mortgage loans sold, recognized gains			$ 18,000	$ 61,000
Number of loans | loan	1		1		1
Residential mortgage loans held for sale	$ 553,000		$ 553,000		$ 309,000
Fixed-rate mortgage loans
Accounts, Notes, Loans and Financing Receivable
Book value	$ 29,200,000		$ 29,200,000

Securities Sold Under Agreeme_3

Securities Sold Under Agreements to Repurchase - Summary of Repurchase Liability by Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 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	9 Months Ended
	Sep. 30, 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	$ 13,242
Fair Value of Securities	13,080
Repurchase Liability	10,000
Amount at Risk	$ 3,242
Weighted Average Months to Maturity	3 months

Offsetting of Financial Liabi_3

Offsetting of Financial Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 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	$ 26	$ 19	$ 77	$ 59
Interest cost	41	38	122	113
Net periodic benefit cost (income)	$ 67	$ 57	$ 199	$ 172

Employee Stock Ownership Plan -

Employee Stock Ownership Plan - Loan, Expense and Shares (Details) - ESOP - USD ($)	Jul. 10, 2009	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
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		$ 349,000	$ 370,000	$ 1,000,000	$ 1,200,000
Allocated shares		454,574		454,574		446,041
Unearned shares		452,630		452,630		489,329
Total ESOP shares		907,204		907,204		935,370
Fair value of unearned shares, in thousands		$ 12,936,000		$ 12,936,000		$ 12,713,000
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
ESOP restoration | Certain executives
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits
Accrued (reversed) benefits	$ 67,000	$ 56,000	$ 246,000	$ 167,000

Share-Based Compensation - Plan

Share-Based Compensation - Plan Provisions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-Based Compensation
Compensation expense	$ 123	$ 120	$ 494	$ 256
Income tax benefit	$ 33	$ 33	$ 135	$ 70
2010 Equity Incentive Plan
Share-Based Compensation
Number of shares authorized	1,862,637		1,862,637
2010 Equity Incentive Plan | Vesting period one
Share-Based Compensation
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		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Common Stock
Stock option activity
Exercised (in shares)	21,200		203,370	69,008
Stock option activity
Shares of common stock issued in exchange for stock options and common shares			85,269
Common shares exchanged			118,101
Stock Options
Stock option activity
Balance at beginning of period (in shares)			337,654	411,543	411,543
Exercised (in shares)			203,370	69,008
Balance at end of period (in shares)	134,284	342,535	134,284	342,535	337,654	411,543
Options vested and exercisable (in shares)	134,284		134,284
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)	$ 17.74	$ 17.51	17.74	$ 17.51	$ 17.51	$ 17.48
Options vested and exercisable (in dollars per share)	$ 17.74		$ 17.74
Remaining Contractual Life
Options outstanding			1 year 1 month 6 days	1 year 11 months 27 days	1 year 8 months 27 days	2 years 8 months 23 days
Options vested and exercisable			1 year 1 month 6 days
Aggregate Intrinsic Value
Beginning of period			$ 2,859	$ 5,509	$ 5,509
Exercised	$ 251		2,282	920
End of period	1,455	$ 4,124	1,455	4,124	$ 2,859	$ 5,509
Options vested and exercisable	1,455		1,455
Stock option activity
Intrinsic value of stock options exercised	251		2,282	920
Proceeds received from stock options exercised	368		3,531	1,198
Tax benefits realized from stock options exercised	60		484	220
Total fair value of stock options that vested		$ 35		$ 35
Unrecognized compensation costs	$ 0		$ 0
Stock Options | Common Stock
Stock option activity
Exercised (in shares)			203,370

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Awards (Details) - USD ($)	Mar. 07, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Restricted Stock
Restricted Stock Awards
Non-vested at beginning of period (in shares)		16,424	10,806
Granted (in shares)		10,366	10,019
Vested (in shares)		6,541	4,401
Non-vested at end of period (in shares)		20,249	16,424
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)		30.14	28.63
Non-vested at end of period (in dollars per share)		$ 28.78	$ 30.26
Unrecognized compensation
Vesting period		3 years
Unrecognized compensation costs		$ 438,000
Restricted Stock Units Based on a Performance Condition
Restricted Stock Awards
Non-vested at beginning of period (in shares)		23,538	11,520
Granted (in shares)		12,438	12,018
Non-vested at end of period (in shares)		35,976	23,538
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)		$ 29.16	$ 30.14
Unrecognized compensation
Unrecognized compensation costs		$ 437,000
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	2,879
Granted (in shares)		3,110	3,005
Non-vested at end of period (in shares)		8,994	5,884
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)		$ 25.74	$ 26.42
Unrecognized compensation
Unrecognized compensation costs		$ 79,000
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share
Net income	$ 5,366	$ 4,786	$ 16,950	$ 14,569
Income allotted to participating securities	(38)	(24)	(112)	(66)
Net income available to common shareholders	$ 5,328	$ 4,762	$ 16,838	$ 14,503
Weighted-average number of shares used in:
Basic earnings per share (in shares)	9,212,119	9,212,913	9,184,741	9,238,827
Dilutive common stock equivalents:
Stock options and restricted stock units (in shares)	83,610	164,490	124,679	186,165
Diluted earnings per share (in shares)	9,295,729	9,377,403	9,309,420	9,424,992
Net income per common share, basic (in dollars per share)	$ 0.58	$ 0.52	$ 1.83	$ 1.57
Net income per common share, diluted (in dollars per share)	$ 0.57	$ 0.51	$ 1.81	$ 1.54

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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	$ (241,772)	$ (234,699)	$ (235,079)	$ (234,854)
Other comprehensive (gain) loss, net of taxes	21	19	(588)	79
Balances at end of period	(245,602)	(235,835)	(245,602)	(235,835)
Accumulated Other Comprehensive Loss
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	7,200	6,889	7,809	5,694
Other comprehensive (gain) loss, net of taxes	21	19	(588)	79
Amounts reclassified from retained earnings				(1,135)
Net current period other comprehensive (gain) loss	21	19	(588)	1,214
Balances at end of period	7,221	6,908	7,221	6,908
Unfunded Pension Liability
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	7,721	6,783	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	7,721	6,783
Unrealized (gain)/loss on securities
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	(521)	106	88	37
Other comprehensive (gain) loss, net of taxes	21	19	(588)	79
Amounts reclassified from retained earnings				(9)
Net current period other comprehensive (gain) loss	21	19	(588)	88
Balances at end of period	$ (500)	$ 125	$ (500)	$ 125

Other Comprehensive Income an_4

Other Comprehensive Income and Loss - Tax Effect on Each Component (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Tax effect on each component of other comprehensive loss
Pretax amount	$ 28	$ 26	$ (802)	$ 108
Tax	(7)	(7)	214	(29)
After Tax Amount	21	19	(588)	79
Accumulated Other Comprehensive Loss
Tax effect on each component of other comprehensive loss
After Tax Amount	21	19	(588)	79
Unrealized (gain)/loss on securities
Tax effect on each component of other comprehensive loss
Pretax amount	28	26	(802)	108
Tax	(7)	(7)	214	(29)
After Tax Amount	$ 21	$ 19	$ (588)	$ 79

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Revenue from contracts with customers	$ 384	$ 356	$ 1,184	$ 1,160
Other revenue	175	166	878	412
Total	504	470	1,427	1,372
Total	55	52	635	200
Total	559	522	2,062	1,572
Service Fees on Loan and Deposit Accounts
Revenues
Revenue from contracts with customers	347	334	1,047	1,045
Other revenue	157	136	380	327
Total	504	470	1,427	1,372
Other
Revenues
Revenue from contracts with customers	37	22	137	115
Other revenue	18	30	498	85
Total	$ 55	$ 52	$ 635	$ 200

Leases - Lease Costs (Details)

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases
Election to use package of lease practical expedients		true
Lease costs:
Operating lease costs	$ 777	$ 2,342
Short-term lease costs	21	37
Variable lease costs	40	93
Total lease costs	$ 838	$ 2,472

Leases - Future Minimum Rental

Leases - Future Minimum Rental Commitments Under Noncancellable Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Future minimum rental commitments:
2019	$ 676
2020	2,590
2021	2,053
2022	1,810
2023	1,523
Thereafter	4,228
Total	12,880
Less interest	1,147
Present value of leases	$ 11,733	$ 13,200

Leases - Other Related Informat

Leases - Other Related Information (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Leases
Cash paid for amounts included in measurement of lease liabilities	$ 721	$ 2,266
New ROU operating assets	$ 246	$ 13,254
Weighted-average remaining lease term (years)	6 years 2 months 23 days	6 years 2 months 23 days
Weighted-average discount rate	2.90%	2.90%

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Estimated Fair Values (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Investment securities available for sale, at fair value	$ 8,882	$ 2,560
Investment securities held to maturity	377,023	364,922
Carrying Amount
Assets
Cash and cash equivalents	29,410	47,063
Investment securities available for sale, at fair value	8,882	2,560
Investment securities held to maturity	369,387	371,517
Loans held for sale	553	309
Loans receivable, net	1,592,863	1,574,714
FHLB stock	9,839	8,093
FRB stock	3,128	3,114
Accrued interest receivable	5,494	5,274
Interest rate contracts	13	5
Liabilities
Deposits	1,605,194	1,629,164
Advances from the Federal Home Loan Bank	183,900	142,200
Securities sold under agreements to repurchase	10,000	30,000
Accrued interest payable	190	243
Interest rate contracts	13	5
Estimated Fair Value
Assets
Cash and cash equivalents	29,410	47,063
Investment securities available for sale, at fair value	8,882	2,560
Investment securities held to maturity	377,023	364,922
Loans held for sale	564	319
Loans receivable, net	1,640,941	1,553,672
FHLB stock	9,839	8,093
FRB stock	3,128	3,114
Accrued interest receivable	5,494	5,274
Interest rate contracts	13	5
Liabilities
Deposits	1,605,914	1,626,587
Advances from the Federal Home Loan Bank	184,934	141,874
Securities sold under agreements to repurchase	9,990	29,876
Accrued interest payable	190	243
Interest rate contracts	13	5
Estimated Fair Value | Level 1
Assets
Cash and cash equivalents	29,410	47,063
Accrued interest receivable	18	12
Estimated Fair Value | Level 2
Assets
Investment securities available for sale, at fair value	8,882	2,560
Investment securities held to maturity	377,023	364,219
Loans held for sale	564	319
FHLB stock	9,839	8,093
FRB stock	3,128	3,114
Accrued interest receivable	1,017	960
Interest rate contracts	13	5
Liabilities
Deposits	1,160,561	1,238,023
Advances from the Federal Home Loan Bank	184,934	141,874
Securities sold under agreements to repurchase	9,990	29,876
Accrued interest payable	57	111
Interest rate contracts	13	5
Estimated Fair Value | Level 3
Assets
Investment securities held to maturity		703
Loans receivable, net	1,640,941	1,553,672
Accrued interest receivable	4,459	4,302
Liabilities
Deposits	445,353	388,564
Accrued interest payable	$ 133	$ 132

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets and Liabilities Measured at Fair Value on Recurring Basis
Investment securities available for sale, at fair value	$ 8,882	$ 2,560
Fair Value, Measurements, Recurring
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	13	5
Interest rate contracts - liabilities	(13)	(5)
Investment securities available for sale, at fair value	8,882	2,560
Fair Value, Measurements, Recurring | Level 2
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	13	5
Interest rate contracts - liabilities	(13)	(5)
Investment securities available for sale, at fair value	$ 8,882	$ 2,560

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value		$ 0
Mortgage servicing assets, Fair value	$ 452
Mortgage servicing assets, Total losses	(16)
Level 3
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Mortgage servicing assets, Fair value	$ 452
Servicing Asset, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Discount rate | Level 3
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Servicing Asset, Measurement Input	10.25
Annual cost to service (per loan, in dollars) | Level 3
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Servicing Asset, Measurement Input	60
Discounted cash flow model | Level 3 | Mortgage Servicing Assets
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value	$ 452
Minimum | Prepayment speed (CPR) | Level 3
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Servicing Asset, Measurement Input	13.63
Maximum | Prepayment speed (CPR) | Level 3
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Servicing Asset, Measurement Input	16.36

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Oct. 24, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)		$ 0.22	$ 0.22	$ 0.76	$ 0.72
Subsequent event
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)	$ 0.23