Territorial Bancorp (TBNK) 10-K 13 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Feb. 29, 2020	Jun. 30, 2019
Document and Entity Information
Entity Registrant Name	Territorial Bancorp Inc.
Entity Central Index Key	0001447051
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 269.9
Entity Common Stock, Shares Outstanding		9,686,048
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 44,806	$ 47,063
Investment securities available for sale, at fair value	8,628	2,560
Investment securities held to maturity, at amortized cost (fair value of $371,305 and $364,922 at December 31, 2019 and December 31, 2018, respectively)	363,883	371,517
Loans held for sale	470	309
Loans receivable, net	1,584,784	1,574,714
Federal Home Loan Bank stock, at cost	8,723	8,093
Federal Reserve Bank stock, at cost	3,128	3,114
Accrued interest receivable	5,409	5,274
Premises and equipment, net	4,370	4,823
Right-of-use asset, net	11,580
Bank-owned life insurance	45,113	45,066
Deferred income tax assets, net	2,619	4,136
Prepaid expenses and other assets	2,800	2,537
Total assets	2,086,313	2,069,206
Liabilities:
Deposits	1,631,933	1,629,164
Advances from the Federal Home Loan Bank	156,000	142,200
Securities sold under agreements to repurchase	10,000	30,000
Accounts payable and accrued expenses	23,038	23,346
Lease liability	12,183
Income taxes payable	2,305	2,407
Advance payments by borrowers for taxes and insurance	6,964	7,010
Total liabilities	1,842,423	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 9,681,493 and 9,645,955 shares at December 31, 2019 and December 31, 2018, respectively	97	97
Additional paid-in capital	65,057	65,090
Unearned ESOP shares	(4,404)	(4,893)
Retained earnings	190,808	182,594
Accumulated other comprehensive loss	(7,668)	(7,809)
Total stockholders' equity	243,890	235,079
Total liabilities and stockholders' equity	$ 2,086,313	$ 2,069,206

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Investment securities held to maturity, fair value (in dollars)	$ 371,305	$ 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	9,681,493	9,645,955
Common stock, shares outstanding	9,681,493	9,645,955

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Interest income:
Loans	$ 63,137	$ 60,279
Investment securities	11,459	12,236
Other investments	972	786
Total interest income	75,568	73,301
Interest expense:
Deposits	13,463	11,015
Advances from the Federal Home Loan Bank	3,346	2,010
Securities sold under agreements to repurchase	218	504
Total interest expense	17,027	13,529
Net interest income	58,541	59,772
Provision for loan losses	61	119
Net interest income after provision for loan losses	58,480	59,653
Noninterest income:
Service fees on loan and deposit accounts	1,937	1,886
Income on bank-owned life insurance	835	865
Gain on sale of investment securities	2,910	45
Gain on sale of loans	1,540	72
Other	610	296
Total noninterest income	7,832	3,164
Noninterest expense:
Salaries and employee benefits	22,580	22,159
Occupancy	6,400	6,324
Equipment	4,183	3,980
Federal deposit insurance premiums	288	608
Other general and administrative expenses	4,555	4,423
Total noninterest expense	38,006	37,494
Income before income taxes	28,306	25,323
Income taxes	6,311	6,111
Net income	$ 21,995	$ 19,212
Basic earnings per share (in dollars per share)	$ 2.38	$ 2.07
Diluted earnings per share (in dollars per share)	2.34	2.03
Cash dividends declared per common share (in dollars per share)	$ 1.49	$ 1.14
Basic weighted-average shares outstanding (in shares)	9,196,674	9,219,123
Diluted weighted-average shares outstanding (in shares)	9,325,614	9,400,395

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 21,995	$ 19,212
Change in unfunded pension liability, net of tax	(457)	(938)
Change in unrealized gain or loss on securities, net of tax	598	(42)
Other comprehensive income (loss), net of tax	141	(980)
Comprehensive income	$ 22,136	$ 18,232

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				19,212		19,212
Other comprehensive income (loss)					(980)	(980)
Reclassification of deferred taxes				1,135	(1,135)
Cash dividends declared				(10,535)		(10,535)
Share-based compensation		341				341
Share-based compensation (in shares)	4,401
Allocation of 48,932 ESOP shares		966	490			1,456
Repurchase of shares of common stock	$ (3)	(10,549)				(10,552)
Repurchase of shares of common stock (in shares)	(347,393)
Exercise of options for common stock	$ 1	1,282				1,283
Exercise of options for common stock (in shares)	73,889
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				21,995		21,995
Other comprehensive income (loss)					141	141
Adoption of lease accounting standard				(10)		(10)
Cash dividends declared				(13,771)		(13,771)
Share-based compensation		571				571
Share-based compensation (in shares)	6,541
Allocation of 48,932 ESOP shares		909	489			1,398
Repurchase of shares of common stock	$ (2)	(5,384)				(5,386)
Repurchase of shares of common stock (in shares)	(192,248)
Exercise of options for common stock	$ 2	3,871				3,873
Exercise of options for common stock (in shares)	221,245
Balance at Dec. 31, 2019	$ 97	$ 65,057	$ (4,404)	$ 190,808	$ (7,668)	$ 243,890
Balance (in shares) at Dec. 31, 2019	9,681,493

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Consolidated Statements of Stockholders' Equity, Share Data
Cash dividends declared per common share (in dollars per share)	$ 1.49	$ 1.14
Common Stock
Consolidated Statements of Stockholders' Equity, Share Data
Allocation of ESOP shares, shares	48,932	48,932

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 21,995	$ 19,212
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	61	119
Depreciation and amortization	1,171	1,255
Deferred income tax expense	1,466	829
Amortization of fees, discounts, and premiums, net	(493)	(469)
Amortization of right-of-use asset	2,761
Origination of loans held for sale	(7,982)	(9,912)
Proceeds from sales of loans held for sale	10,133	10,078
Gain on sale of loans, net	(1,540)	(72)
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		6
ESOP expense	1,398	1,456
Share-based compensation expense	571	341
Increase in accrued interest receivable	(135)	(132)
Net increase in bank-owned life insurance	(835)	(865)
Net decrease in prepaid expenses and other assets	81	1,315
Net decrease in accounts payable and accrued expenses	(629)	(4,367)
Net decrease in lease liability	(2,638)
Net (decrease) increase in advance payments by borrowers for taxes and insurance	(46)	386
Net decrease in income taxes receivable		1,571
Net (decrease) increase in income taxes payable	(102)	924
Net cash from operating activities	22,327	21,626
Cash flows from investing activities:
Purchases of investment securities held to maturity	(9,210)	(14,983)
Principal repayments on investment securities held to maturity	42,698	43,959
Principal repayments on investment securities available for sale	1,187	224
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	(48,782)	(85,547)
Purchases of Federal Home Loan Bank stock	(22,366)	(9,180)
Proceeds from redemption of Federal Home Loan Bank stock	21,736	7,628
Purchases of Federal Reserve Bank stock	(14)	(11)
Proceeds from bank-owned life insurance	788
Proceeds from sale of real estate owned		50
Purchases of premises and equipment	(718)	(363)
Net cash from investing activities	(6,037)	(53,761)
Cash flows from financing activities:
Net increase in deposits	2,769	31,869
Proceeds from advances from the Federal Home Loan Bank	557,200	215,700
Repayments of advances from the Federal Home Loan Bank	(543,400)	(180,700)
Proceeds from securities sold under agreements to repurchase	5,000
Repayments of securities sold under agreements to repurchase	(25,000)
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)	(9,270)
Cash dividends paid	(13,689)	(10,490)
Net cash from financing activities	(18,547)	47,109
Net (decrease) increase in cash and cash equivalents	(2,257)	14,974
Cash and cash equivalents at beginning of the period	47,063	32,089
Cash and cash equivalents at end of the period	44,806	47,063
Cash paid for:
Interest on deposits and borrowings	16,873	13,862
Income taxes	4,947	2,787
Supplemental disclosure of noncash investing and financing activities:
Company stock acquired through stock swap and net settlement transactions	3,703	1,282
Company stock repurchased through stock swap and net settlement transactions	3,789	1,282
Loans transferred to real estate owned		46
Loans securitized into investment securities	36,826
Dividends declared, not yet paid	82	$ 45
Establishment of right-of-use asset	14,341
Establishment of lease liability	14,821
Transfer of securities from held-to-maturity to available-for-sale	$ 11,390

Organization

Organization	12 Months Ended
	Dec. 31, 2019
Organization
Organization	Notes to Consolidated Financial Statements (1) Organization In 2009, Territorial Savings Bank completed a conversion from a mutual holding company to a stock holding company 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies (a) Description of Business Territorial Bancorp Inc. (the Company), through its wholly-owned subsidiary, Territorial Savings Bank (the Bank), provides loan and deposit products and services primarily to individual customers through 29 branches located throughout Hawaii. We deal primarily in residential mortgage loans in the State of Hawaii. The Company’s earnings depend primarily on its net interest income, which is the difference between the interest income earned on interest-earning assets (loans receivable and investments) and the interest expense incurred on interest-bearing liabilities (deposit liabilities and borrowings). Deposits traditionally have been the principal source of the Bank’s funds for use in lending, meeting liquidity requirements, and making investments. The Company also derives funds from receipt of interest and principal repayments on outstanding loans receivable and investments, borrowings from the Federal Home Loan Bank (FHLB), securities sold under agreements to repurchase, and proceeds from issuance of common stock. (b) Principles of Consolidation The Consolidated Financial Statements include the accounts and results of operations of Territorial Bancorp Inc. and Territorial Savings Bank and its wholly-owned subsidiaries, Territorial Real Estate Co., Inc. and Territorial Financial Services, Inc. Significant intercompany balances and transactions have been eliminated in consolidation. (c) Cash and Cash Equivalents Cash and cash equivalents includes cash and due from banks, interest-bearing deposits in other banks, federal funds sold, and short-term, highly liquid investments with original maturities of three months or less. (d) Investment Securities The Company classifies and accounts for its investment securities as follows: (1) held-to-maturity debt securities in which the Company has the positive intent and ability to hold to maturity are reported at amortized cost; (2) trading securities that are purchased for the purpose of selling in the near term are reported at fair value, with unrealized gains and losses included in current earnings; and (3) available-for-sale securities not classified as either held-to-maturity or trading securities are reported at fair value, with unrealized gains and losses excluded from current earnings and reported as a separate component of equity. At December 31, 2019 and 2018, the Company classified all of its investments, except $8.6 million and $2.6 million of securities, respectively, as held-to-maturity. A decline in the market value of any available-for-sale or held-to-maturity security below cost, that is deemed to be other than temporary, results in an impairment to reduce the carrying amount to fair value. To determine whether impairment is other than temporary, the Company considers the type of the investment, the cause of the decline in value and the amount and duration of the decline in value. It also considers whether it has the intent and ability not to sell and would not be required to sell for a sufficient period of time to recover the remaining amortized cost basis. Gains or losses on the sale of investment securities are computed using the specific-identification method. The Company amortizes premiums and accretes discounts associated with investment securities using the interest method over the contractual life of the respective investment security. Such amortization and accretion is included in the interest income line item in the Consolidated Statements of Income. Interest income is recognized when earned. (e) Loans Receivable This policy applies to all loan classes. Loans receivable are stated at the principal amount outstanding, less the allowance for loan losses, loan origination fees and costs, and commitment fees. Interest on loans receivable is accrued as earned. The Company has a policy of placing loans on a nonaccrual basis when 90 days or more contractually delinquent or when, in the opinion of management, collection of all or part of the principal balance appears doubtful. For nonaccrual loans, the Company records payments received as a reduction in principal. The Company, considering current information and events regarding the borrowers’ ability to repay their obligations, considers a loan to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is considered to be impaired, the amount of the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if the loan is considered to be collateral dependent, based on the fair value of the collateral less estimated costs to sell. Impairment losses are written off against the allowance for loan losses. For nonaccrual impaired loans, the Company records payments received as a reduction in principal. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current and full payment of principal and interest is expected. (f) Loans Held for Sale Loans held for sale are stated at the lower of aggregate cost or market value. Net fees and costs of originating loans held for sale are deferred and are included in the basis for determining the gain or loss on sales of loans held for sale. (g) Deferred Loan Origination Fees and Unearned Loan Discounts Loan origination and commitment fees and certain direct loan origination costs are being deferred, and the net amount is recognized over the life of the related loan as an adjustment to yield. Net deferred loan fees are amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Net unamortized fees on loans paid in full are recognized as a component of interest income. (h) Real Estate Owned Real estate owned is valued at the time of foreclosure at fair value, less estimated cost to sell, thereby establishing a new cost basis. The Company obtains appraisals based on recent comparable sales to assist management in estimating the fair value of real estate owned. Subsequent to acquisition, real estate owned is valued at the lower of cost or fair value, less estimated cost to sell. Declines in value are charged to expense through a direct write-down of the asset. Costs related to holding real estate are charged to expense while costs related to development and improvements are capitalized. Gains from the sale of real estate owned, if any, are recognized when title has passed, minimum down payment requirements are met, the terms of any notes received are such as to satisfy continuing investment requirements, and the Company is relieved of any requirements for continued involvement with the properties. If the minimum down payment or the continuing investment is not adequate to meet the criteria specified in the Property, Plant and Equipment topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), the Company will defer income recognition and account for such sales using alternative methods, such as installment, deposit, or cost recovery. (i) Allowance for Loan Losses The Company maintains an allowance adequate to cover management’s estimate of probable loan losses as of the balance sheet date. The Company’s allowance for loan losses is maintained at a level considered adequate to provide for losses that can be estimated based upon specific and general conditions. All loan losses are charged, and all recoveries are credited, to the allowance for loan losses. Additions to the allowance for loan losses are provided by charges to income based on various factors, which, in the Company’s judgment, deserve current recognition in estimating probable losses. Charge-offs to the allowance are made when management determines that collectability of all or a portion of a loan is doubtful and available collateral is insufficient to repay the loan. General allowances are established for loan losses on a portfolio basis for loans that do not meet the definition of impaired, in accordance with the Receivables topic of the FASB ASC. The portfolio is grouped into similar risk characteristics, primarily loan type and loan-to-value ratio. The Company applies an estimated loss rate to each loan group. The loss rates applied are based upon its loss experience adjusted, as appropriate, for environmental factors discussed below. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be significantly more than the allowance for loan losses the Company has established, which could have a material negative effect on its financial results. Residential mortgage loans represent the largest segment of the Company’s loan portfolio. Residential mortgage loans are secured by a first mortgage on residential real estate in Hawaii and consist primarily of fixed-rate mortgage loans which have been underwritten to Freddie Mac and Fannie Mae guidelines and have similar risk characteristics. The loan loss allowance is determined by first calculating the historical loss rate for this segment of the portfolio. The loss rate may be adjusted for qualitative and environmental factors. The allowance for loan loss is calculated by multiplying the adjusted loss rate by the total loans in this segment of the portfolio. The adjustments to historical loss experience are based on an evaluation of several qualitative and environmental factors, including: · changes in lending policies and procedures, including changes in underwriting standards and collections, charge-off and recovery practices; · changes in international, national, and local economic trends; · changes in the types of loans in the loan portfolio; · changes in the experience and ability of personnel in the mortgage loan origination and loan servicing departments; · changes in the number and amount of delinquent loans and classified assets; · changes in the type and volume of loans being originated; · changes in the value of underlying collateral for collateral dependent loans; · changes in any concentration of credit; and · external factors such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio. The Company also uses historical loss rates adjusted for qualitative and environmental factors to establish loan loss allowances for the following portfolio segments: · home equity loans and lines of credit; and · consumer and other loans. The Company has a limited loss experience for the construction, commercial and other mortgage segment of the loan portfolio. The loan loss allowance on this portfolio segment is determined using the loan loss rate of other financial institutions in the State of Hawaii. The allowance for loan loss is calculated by multiplying the loan loss rate of other financial institutions in the state by the total loans in this segment of the Company’s loan portfolio. The allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. In addition, the unallocated allowance is established to provide for probable losses that have been incurred as of the reporting date but are not reflected in the allocated allowance. While the Company uses the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, as an integral part of their examination process, the bank regulators will periodically review the allowance for loan losses. The bank regulators may require the Company to increase the allowance based on their analysis of information available at the time of their examination. (j) Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control is surrendered. Control is surrendered when the assets have been isolated from the Company, the transferee obtains the right to pledge or exchange the assets without constraint, and the Company does not maintain effective control over the transferred assets. Mortgage loans sold for cash are accounted for as sales as the above criteria have been met. Mortgage loans may also be packaged into securities that are issued and guaranteed by U.S. government-sponsored enterprises or a U.S. government agency. The Company receives 100% of the mortgage-backed securities issued. The mortgage-backed securities received in securitizations are valued at fair value and classified as held-to-maturity. A gain or loss in the securitization transactions is recognized for the difference between the fair value of the mortgage-backed securities received and the amortized cost of the loans securitized. Mortgage loan transfers accounted for as sales and securitizations are without recourse, except for normal representations and warranties provided in sales transactions, and the Company may retain the related rights to service the loans. The retained servicing rights create mortgage servicing assets that are accounted for in accordance with the Transfers and Servicing topic of the FASB ASC. Mortgage servicing assets are initially valued at fair value and subsequently at the lower of cost or fair value and are amortized in proportion to and over the period of estimated net servicing income. The Company uses a discounted cash flow model to determine the fair value of retained mortgage servicing rights. (k) Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is principally computed on the straight-line method over the estimated useful lives of the respective assets. The estimated useful life of buildings and improvements is 30 years, furniture, fixtures, and equipment is 3 to 10 years, and automobiles are 3 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. (l) Income Taxes The Company files consolidated federal income tax and consolidated state franchise tax returns. Deferred tax assets and liabilities are recognized using the asset and liability method of accounting for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We establish income tax contingency reserves for potential tax liabilities related to uncertain tax positions. A liability for income tax uncertainties would be recorded for unrecognized tax benefits related to uncertain tax positions where it is more likely than not that the position will be sustained upon examination by a taxing authority. As of December 31, 2019 and 2018, the Company had not recognized a liability for income tax uncertainties in the accompanying Consolidated Balance Sheets because management concluded that the Company does not have uncertain tax positions. The Company recognizes interest and penalties related to tax liabilities in other interest expense and other general and administrative expenses, respectively, in the Consolidated Statements of Income. Tax years 2016 to 2018 currently remain subject to examination by the Internal Revenue Service and by the Department of Taxation of the State of Hawaii. (m) Impairment of Long-Lived Assets Long-lived assets, such as premises and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the Consolidated Balance Sheets and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. (n) Pension Plan Pension benefit costs (returns) are charged (credited) to salaries and employee benefits expense, and the corresponding prepaid (accrued) pension cost is recorded in prepaid expenses and other assets or accounts payable and accrued expenses in the consolidated balance sheets. The Company’s policy is to fund pension costs in amounts that will not be less than the minimum funding requirements of the Employee Retirement Income Security Act of 1974 and will not exceed the maximum tax-deductible amounts. The Company generally funds at least the net periodic pension cost, subject to limits and targeted funded status as determined with the consulting actuary. (o) Share-Based Compensation The Company grants share-based compensation awards, including restricted stock and restricted stock units, which are either performance-based or time-based. The fair value of the restricted stock and restricted stock unit awards were based on the closing price of the Company’s stock on the date of grant. The cost of these awards are amortized in the Consolidated Statements of Income on a straight-line basis over the vesting period. The amount of performance-based restricted stock units that vest on a performance condition is remeasured quarterly based on how the Company’s return on average equity compares to the SNL Bank Index. The fair value of performance-based restricted stock units that are based on how the Company’s total stock return compares to the SNL Bank Index was measured using a Monte-Carlo valuation. (p) Supplemental Employee Retirement Plan (SERP) The SERP is a noncontributory supplemental retirement plan covering certain current and former employees of the Company. Benefits in the SERP plan are paid after retirement, in addition to the benefits provided by the Pension Plan. The Company accrues SERP costs over the estimated period until retirement by charging salaries and employee benefits expense in the Consolidated Statements of Income, with a corresponding credit to accounts payable and accrued expenses in the Consolidated Balance Sheets. (q) Employee Stock Ownership Plan (ESOP) The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of stockholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce debt and accrued interest. (r) Earnings Per Share We have two forms of our outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Unvested restrictred 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. Basic earnings per share is computed by dividing net income allocated to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income allocated to common shareholders by the sum of the weighted-average number of shares outstanding plus the dilutive effect of stock options and restricted stock. ESOP shares not committed to be released are not considered outstanding. (s) Common Stock Repurchase Program The Company adopted common stock repurchase programs in which shares repurchased reduce the amount of shares issued and outstanding. The repurchased shares may be reissued in connection with share-based compensation plans and for general corporate purposes. During 2019 and 2018, the Company repurchased 59,700 and 303,500 shares of common stock, respectively, at an average cost of $26.74 and $30.36, respectively, as part of the repurchase programs authorized by the Board of Directors. (t) Bank-Owned Life Insurance The Company’s investment in bank-owned life insurance is based on cash surrender value. The Company invests in bank-owned life insurance to provide a funding source for benefit plan obligations. Bank-owned life insurance also generally provides noninterest income that is nontaxable. Federal regulations generally limit the investment in bank-owned life insurance to 25% of the Bank’s Tier 1 capital plus the allowance for loan losses. At December 31, 2019, this limit was $57.6 million and the Company had invested $45.1 million in bank-owned life insurance at that date. (u) 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. (v) Use of Estimates The preparation of the Consolidated Financial Statements requires management to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amount of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the allowance for loan losses; valuation of certain investment securities and determination as to whether declines in fair value below amortized cost are other than temporary; valuation allowances for deferred income tax assets; mortgage servicing assets; and assets and obligations related to employee benefit plans. Accordingly, actual results could differ from those estimates. (w) 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. In November 2019, the FASB issued an update 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	12 Months Ended
	Dec. 31, 2019
Cash and Cash Equivalents
Cash and Cash Equivalents	(3) Cash and Cash Equivalents The table below presents the balances of cash and cash equivalents: December 31, (Dollars in thousands) 2019 2018 Cash and due from banks $ 9,571 $ 9,771 Interest-earning deposits in other banks 35,235 37,292 Cash and cash equivalents $ $ Interest-earning deposits in other banks consist primarily of deposits at the Federal Reserve Bank of San Francisco.

Investment Securities

Investment Securities	12 Months Ended
	Dec. 31, 2019
Investment Securities.
Investment Securities	(4) Investment Securities The amortized cost and fair values of investment securities are as follows: Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value December 31, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 7,905 $ 723 $ — $ 8,628 Total $ 7,905 $ 723 $ — $ 8,628 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 363,883 $ 8,436 $ (1,014) $ 371,305 Total $ 363,883 $ 8,436 $ (1,014) $ 371,305 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 December 31, 2019 are shown below. Incorporated in the maturity schedule are mortgage-backed securities, which are allocated using the contractual maturity as a basis. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Estimated (Dollars in thousands) Cost Fair Value Available-for-sale: Due within 5 years $ — $ — Due after 5 years through 10 years — — Due after 10 years 7,905 8,628 Total $ 7,905 $ 8,628 Held-to-maturity: Due within 5 years $ — $ — Due after 5 years through 10 years 60 61 Due after 10 years 363,823 371,244 Total $ 363,883 $ 371,305 Realized gains and losses and the proceeds from sales of held-to-maturity and available-for-sale securities are shown in the table below. (Dollars in thousands) 2019 2018 Proceeds from sales $ 8,644 $ 4,462 Gross gains 2,910 45 Gross losses — — During 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. During 2018, the Company sold $4.4 million of held-to-maturity securities and recorded a gain of $45,000. 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 remaining securities in the held-to-maturity portfolio to maturity. During 2019, the Company sold $5.0 million of available-for-sale mortgage-backed securities and recorded a gain of $153,000. The Company did not sell any available-for-sale securities in 2018. 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 $188.9 million and $308.8 million at December 31, 2019 and 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 December 31, 2019 and 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) December 31, 2019: Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 55,882 $ (302) $ 34,492 $ (712) 30 $ 90,374 $ (1,014) 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 December 31, 2019 and 2018. During 2019, the Company securitized fixed-rate first mortgage loans with a book value of $36.8 million into Freddie Mac mortgage-backed securities to increase liquidity. The securitization transctions increased investment securities and lowered loans receivable. The securitization transactions were accounted for by recording the mortgage-backed securities at a fair value of $37.9 million in accordance with the FASB ASC. A net gain of $1.5 million on the sale of loans was recognized on the securitization transactions as the fair value of the mortgage-backed securities exceeded the amortized cost of the mortgage loans.

Federal Home Loan Bank Stock

Federal Home Loan Bank Stock	12 Months Ended
	Dec. 31, 2019
FHLB stock
Federal Home Loan Bank Stock
Federal Home Loan Bank Stock	(5) Federal Home Loan Bank Stock The Bank, as a member of the FHLB system, is required to obtain and hold shares of capital stock in the FHLB. At December 31, 2019 and 2018, the Bank met such requirement. At December 31, 2019 and 2018, the Bank owned $8.7 million and $8.1 million, respectively, of capital stock of the FHLB Des Moines. The Company evaluated its investment in the stock of the FHLB Des Moines for impairment. Based on the Company’s evaluation of the underlying investment, including the long-term nature of the investment and the liquidity position of the FHLB Des Moines, the Company did not consider its FHLB stock other-than-temporarily impaired.

Federal Reserve Bank Stock

Federal Reserve Bank Stock	12 Months Ended
	Dec. 31, 2019
FRB stock
Federal Reserve Bank Stock
Federal Reserve Bank Stock	(6) Federal Reserve Bank Stock The Bank, as a member of the Federal Reserve System, is required to hold shares of capital stock of the FRB of San Francisco equal to six percent of capital and surplus of the Bank. At December 31, 2019 and 2018, the Bank met such requirement. At December 31, 2019 and 2018, the Bank owned $3.1 million of capital stock of the FRB of San Francisco. The Company evaluated its investment in the stock of the FRB of San Francisco for impairment. Based on the Company’s evaluation of the underlying investment, including the long-term nature of the investment and the liquidity position of the FRB of San Francisco, the Company did not consider its FRB stock other-than-temporarily impaired.

Loans Receivable and Allowance

Loans Receivable and Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2019
Loans Receivable and Allowance for Loan Losses
Loans Receivable and Allowance for Loan Losses	(7) Loans Receivable and Allowance for Loan Losses The components of loans receivable are as follows: December 31, (Dollars in thousands) 2019 2018 Real estate loans: First mortgages: One- to four-family residential $ 1,536,781 $ 1,531,149 Multi-family residential 9,965 12,151 Construction, commercial and other 23,382 20,780 Home equity loans and lines of credit 10,084 11,090 Total real estate loans 1,580,212 1,575,170 Other loans: Loans on deposit accounts 235 357 Consumer and other loans 9,484 4,939 Total other loans 9,719 5,296 Less: Net unearned fees and discounts (2,435) (3,110) Allowance for loan losses (2,712) (2,642) Total unearned fees, discounts and allowance for loan losses (5,147) (5,752) Loans receivable, net $ 1,584,784 $ 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 Year ended December 31, 2019: Balance, beginning of year $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Provision (reversal of provision) for loan losses (84) 68 — 26 51 61 1,713 511 1 73 405 2,703 Charge-offs (8) — — (40) — (48) Recoveries 36 — — 21 — 57 Net recoveries (charge-offs) 28 — — (19) — 9 Balance, end of year $ 1,741 $ 511 $ 1 $ 54 $ 405 $ 2,712 Year ended December 31, 2018: Balance, beginning of year $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 Provision (reversal of provision) for loan losses 78 (96) — 15 122 119 1,799 443 1 70 354 2,667 Charge-offs (12) — — (29) — (41) Recoveries 10 — — 6 — 16 Net charge-offs (2) — — (23) — (25) Balance, end of year $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 The allowance for loan loss for each segment of the loan portfolio is generally determined by calculating the historical loss of each segment in a seven year look-back period and adding a qualitative adjustment for the following factors: · changes in lending policies and procedures, including changes in underwriting standards and collections, charge-off and recovery practices; · changes in international, national, and local economic trends; · changes in the types of loans in the loan portfolio; · changes in the experience and ability of personnel in the mortgage loan origination and loan servicing departments; · changes in the number and amount of delinquent loans and classified assets; · changes in the type and volume of loans being originated; · changes in the value of underlying collateral for collateral dependent loans; · changes in any concentration of credit; and · external factors such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio. The allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. The unallocated allowance is established for probable losses that have been incurred as of the reporting date but are not reflected in the allocated allowance. Management considers the allowance for loan losses at December 31, 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 December 31, 2019: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,741 511 1 54 405 2,712 Total ending allowance balance $ 1,741 $ 511 $ 1 $ 54 $ 405 $ 2,712 Loans: Ending loan balance: Individually evaluated for impairment $ 1,224 $ — $ 89 $ — $ — $ 1,313 Collectively evaluated for impairment 1,543,125 23,326 9,997 9,735 — 1,586,183 Total ending loan balance $ 1,544,349 $ 23,326 $ 10,086 $ 9,735 $ — $ 1,587,496 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 December 31, 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,224 $ 1,615 Home equity loans and lines of credit 89 178 Total $ 1,313 $ 1,793 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: Average Recorded Interest Income (Dollars in thousands) Investment Recognized 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,272 $ 34 Home equity loans and lines of credit 98 — Total $ 1,370 $ 34 2018: With no related allowance recorded: One- to four-family residential mortgages $ 3,039 $ 53 Home equity loans and lines of credit 156 — Total $ 3,195 $ 53 There were no loans individually evaluated for impairment with a related allowance for loan loss as of December 31, 2019 or 2018. Loans individually evaluated for impairment do not have an allocated allowance for loan loss because they are written down to fair value at the time of impairment. The table below presents the aging of loans and accrual status by class of loans: Loans 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 December 31, 2019: One- to four-family residential mortgages $ — $ 959 $ — $ 959 $ 1,533,446 $ 1,534,405 $ 647 $ — Multi-family residential mortgages — — — — 9,944 9,944 — — Construction, commercial and other mortgages — — — — 23,326 23,326 — — Home equity loans and lines of credit — 26 — 26 10,060 10,086 89 — Loans on deposit accounts — — — — 235 235 — — Consumer and other 33 1 1 35 9,465 9,500 — 1 Total $ 33 $ 986 $ 1 $ 1,020 $ 1,586,476 $ 1,587,496 $ 736 $ 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. The Company had six nonaccrual loans with a book value of $736,000 at December 31, 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 $58,000 and $93,000 during 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 $60,000 and $133,000 during 2019 and 2018, respectively, had the loans been accruing interest. At December 31, 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. There were no loans modified in a troubled debt restructuring during the year ended December 31, 2019 or 2018. There were no new troubled debt restructurings within the 12 months ended December 31, 2019 that subsequently defaulted. The table below summarizes troubled debt restucturings by class of loans: Number of Accrual Number of Nonaccrual (Dollars in thousands) Loans Status Loans Status Total December 31, 2019: One- to four-family residential mortgages 3 $ 577 2 $ 525 $ 1,102 Home equity loans and lines of credit — — 1 64 64 Total 3 $ 577 3 $ 589 $ 1,166 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 at December 31, 2019 or December 31, 2018. Restructurings include deferrals of interest and/or principal payments and temporary or permanent reductions in interest rates due to the financial difficulties of the borrowers. At December 31, 2019, we have no commitments to lend any additional funds to these borrowers. The Company had no real estate owned as of December 31, 2019 or 2018. There were no loans in the process of foreclosure at December 31, 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 as of December 31, 2018. Nearly all of our real estate loans are collateralized by real estate located in the State of Hawaii. Loan-to-value ratios on these real estate loans generally do not exceed 80% at the time of origination. During the years ended December 31, 2019 and 2018, the Company sold mortgage loans held for sale with principal balances of $10.1 million and $10.0 million, respectively, and recognized gains of $89,000 and $72,000, respectively. The Company had one loan held for sale for $470,000 at December 31, 2019 and one loan held for sale for $309,000 at December 31, 2018. During 2019, the Company securitized fixed-rate first mortgage loans with a book value of $36.8 milion and received mortgage-backed securities with a fair market value of $37.9 million. The Company retained the servicing of these loans and recorded mortgage servicing assets with a fair market value of $344,000. A net gain of $1.5 million was recognized on the securitization transactions as the fair value of the mortgage-backed securities exceeded the amortized cost of the mortgage loans. The Company serviced loans for others with principal balances of $65.1 million and $30.3 million at December 31, 2019 and 2018, respectively. Of these amounts, $37.8 million and $1.5 million of loan balances relate to securitizations for which the Company continues to hold the related mortgage-backed securities at December 31, 2019 and 2018, respectively. The amount of contractually specified servicing fees earned was $114,000 and $88,000 for 2019 and 2018, respectively. The fees are reported in service fees on loan and deposit accounts in the Consolidated Statements of Income. In the normal course of business, the Company has made loans to certain directors and executive officers under terms which management believes are consistent with the Company’s general lending policies. Loans to directors and executive officers amounted to $661,000 at December 31, 2019 and $850,000 at December 31, 2018.

Accrued Interest Receivable

Accrued Interest Receivable	12 Months Ended
	Dec. 31, 2019
Accrued Interest Receivable
Accrued Interest Receivable	(8) Accrued Interest Receivable The components of accrued interest receivable are as follows: December 31, (Dollars in thousands) 2019 2018 Loans receivable $ 4,425 $ 4,302 Investment securities 952 960 Interest-bearing deposits 32 12 Total $ 5,409 $ 5,274

Mortgage Servicing Assets

Mortgage Servicing Assets	12 Months Ended
	Dec. 31, 2019
Mortgage Servicing Assets.
Mortgage Servicing Assets	(9) Mortgage Servicing Assets Mortgage servicing assets are created when the Company sells mortgage loans and retains the rights to service the loans. Mortgage servicing assets are accounted for in accordance with the Transfers and Servicing topic of the FASB ASC and are initially valued at fair value and subsequently at the lower of cost or fair value. We amortize mortgage servicing assets in proportion to and over the period of estimated net servicing income. All servicing assets are grouped into categories based on the interest rate and original term of the loan sold. Mortgage servicing assets related to loan sales are recorded as a gain on sale of loans and totaled $344,000 and $0 for the years ended December 31, 2019 and 2018, respectively. The table below presents the changes in our mortgage servicing assets: (Dollars in thousands) 2019 2018 Balance at beginning of year $ 226 $ 263 Additions 344 — Impairments (16) — Amortization (51) (37) Balance at end of year $ 503 $ 226 The Company added $344,000 in mortgage servicing assets when it securitized $36.8 million of mortgage loans into mortgage-backed securities and sold $2.2 million of mortgage loans on a servicing retained basis. These transactions were conducted to increase liquidity. The table below presents the gross carrying values, accumulated amortization, and net carrying values of our mortgage servicing assets: December 31, (Dollars in thousands) 2019 2018 Gross carrying value $ 1,638 $ 1,310 Accumulated amortization (1,135) (1,084) Net carrying value $ 503 $ 226 The estimated amortization expense for our mortgage servicing assets for the next five years and all years thereafter are as follows: (Dollars in thousands) 2020 $ 92 2021 73 2022 57 2023 46 2024 38 Thereafter 197 Total $ 503 The Company uses a discounted cash flow model to determine the fair value of retained mortgage servicing assets. The discounted cash flow model is also used to assess impairment of servicing assets. Impairments are recorded as adjustments to amortization expense and included in service fees on loan and deposit accounts in the statements of income. Critical assumptions used in the discounted cash flow model include mortgage prepayment speeds, discount rates and cost of servicing. Prepayment speed may be affected by economic factors such as home price appreciation, market interest rates, the availability of other loan products to our borrowers and customer payment patterns. Prepayment speeds include the impact of all borrower prepayments, including full payoffs, additional principal payments and the impact of loans paid off due to foreclosure liquidations. As market interest rates decline, prepayment speeds will generally increase as customers refinance existing mortgage loans under more favorable interest rate terms and future cash flows will generally decline resulting in a potential reduction, or impairment, to the fair value of the mortgage servicing assets. Alternatively, an increase in market interest rates may cause a decrease in prepayment speeds and therefore an increase in the fair value of mortgage servicing assets. The table below presents the fair values and key assumptions used in determining the fair values of our mortgage servicing assets as of December 31, 2019 and 2018: 2019 2018 Fair value, beginning of year (in thousands) $ 291 $ 311 Fair value, end of year (in thousands) 552 291 Weighted average discount rate % % Weighted average prepayment speed assumption (CPR) Annual cost to service (per loan) $ 75 $ 70 The conditional prepayment rate (CPR) prepayment model assumes constant prepayment rates each period.

Interest Rate Lock and Forward

Interest Rate Lock and Forward Loan Sale Commitments	12 Months Ended
	Dec. 31, 2019
Interest Rate Lock and Forward Loan Sale Commitments
Interest Rate Lock and Forward Loan Sale Commitments	(10) Interest Rate Lock and Forward Loan Sale Commitments The Company may enter into interest rate lock commitments with borrowers on loans intended to be sold. To manage interest rate risk on the lock commitments, the Company may also enter into forward loan sale commitments. The interest rate lock commitments and forward loan sale commitments are treated as derivatives and are recorded at their fair values in prepaid expenses and other assets or in accounts payable and accrued expenses. Changes in fair value are recorded in current earnings. At December 31, 2019, interest rate locks and forward loan sale commitments on loans held for sale amounted to $1.8 million and $2.2 million, respectively. The table below presents the location of assets and liabilities related to derivatives: Asset Derivatives Liability Derivatives Location on Fair Value at December 31, Fair Value at December 31, (Dollars in thousands) Balance Sheet 2019 2018 2019 2018 Interest rate contracts Prepaid expenses and other assets $ 5 $ 5 $ — $ — Interest rate contracts Accounts payable and accrued expenses — — 5 5 Total derivatives $ 5 $ 5 $ 5 $ 5 There were no gains or losses on derivatives for the years ended December 31, 2019 and 2018.

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2019
Premises and Equipment
Premises and Equipment	(11) Premises and Equipment Premises and equipment are as follows: December 31, (Dollars in thousands) 2019 2018 Land $ 585 $ 585 Buildings and improvements 1,365 1,365 Leasehold improvements 14,027 13,938 Furniture, fixtures and equipment 6,035 5,502 Automobiles 115 115 22,127 21,505 Less accumulated depreciation and amortization (17,900) (16,729) 4,227 4,776 Construction in progress 143 47 Total $ 4,370 $ 4,823 Depreciation expense was $1.2 million and $1.3 million for the years ended December 31, 2019 and 2018, respectively.

Deposits

Deposits	12 Months Ended
	Dec. 31, 2019
Deposits
Deposits	(12) Deposits Deposit accounts by type are summarized with their respective weighted-average interest rates as follows: December 31, 2019 2018 (Dollars in thousands) Amount Rate Amount Rate Non-interest bearing $ 54,927 - % $ 51,744 - % Savings accounts 908,175 0.49 991,310 0.50 Certificates of deposit 463,943 1.87 391,141 1.89 Money market 4,917 0.45 5,291 0.44 Checking and Super NOW 199,971 0.02 189,678 0.02 Total $ 1,631,933 0.81 % $ 1,629,164 0.77 % The maturity of certificate of deposit accounts at December 31, 2019 is as follows (dollars in thousands): Maturing in: 2020 $ 310,465 2021 88,002 2022 38,394 2023 14,666 2024 12,416 Total $ 463,943 Certificates of deposit with balances greater than or equal to $250,000 totaled $272.7 mllion and $244.6 million at December 31, 2019 and 2018, respectively. Deposit accounts in the Bank are insured by the FDIC, generally up to a maximum of $250,000 per account owner. Interest expense by type of deposit is as follows: (Dollars in thousands) 2019 2018 Savings $ 4,593 $ 4,842 Certificates of deposit and money market 8,829 6,134 Checking and Super NOW 41 39 Total $ 13,463 $ 11,015 At December 31, 2019 and 2018, overdrawn deposit accounts totaled $37,000 and $34,000, respectively, and have been reclassified as loans in the consolidated balance sheets.

Advances from the Federal Home

Advances from the Federal Home Loan Bank	12 Months Ended
	Dec. 31, 2019
Advances from the Federal Home Loan Bank
Advances from the Federal Home Loan Bank	(13) Advances from the Federal Home Loan Bank Federal Home Loan Bank advances are secured by a blanket pledge on the Bank’s assets not otherwise pledged. At December 31, 2019 and 2018, our credit line with the FHLB Des Moines was equal to 45% of the Bank’s total assets and we had the capacity to borrow an additional $727.5 million and $769.3 million, respectively. Advances outstanding consisted of the following: December 31, 2019 2018 Weighted Weighted Average Average (Dollars in thousands) Amount Rate Amount Rate Due within one year $ 20,000 2.16 % $ 107,200 2.39 % Due over 1 year to 2 years 57,000 2.50 20,000 2.16 Due over 2 years to 3 years 30,000 2.37 15,000 2.32 Due over 3 years to 4 years 19,000 2.16 — — Due over 4 years to 5 years 30,000 1.87 — — Total $ 156,000 2.27 % $ 142,200 2.35 %

Securities Sold Under Agreement

Securities Sold Under Agreements to Repurchase	12 Months Ended
	Dec. 31, 2019
Securities Sold Under Agreements to Repurchase
Securities Sold Under Agreements to Repurchase	(14) Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase are treated as financings and the obligations to repurchase the identical securities sold are reflected as a liability with the securities collateralizing the agreements classified as an asset. Securities sold under agreements to repurchase are summarized as follows: 2019 2018 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ 5,000 1.65 % $ 25,000 1.66 % Over 1 year to 2 years — — 5,000 1.65 Over 4 year to 5 years 5,000 1.88 — — Total $ 10,000 1.77 % $ 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 December 31, 2019. The amount at risk is the greater of the carrying value or fair value over the repurchase liability and refers to the potential loss to the Company if the secured lender fails to return the security at the maturity date of the agreement. All the agreements to repurchase are with JP Morgan Securities and the securities pledged are mortgage-backed securities issued and guaranteed by U.S. government sponsored enterprises. The repurchase liability cannot exceed 90% of the fair value of securities pledged. In the event of a decline in the fair value of securities pledged to less than the required amount due to market conditions or principal repayments, the Company is obligated to pledge additional securities or other suitable collateral to cure the deficiency. Weighted Carrying Fair Average Value of Value of Repurchase Amount Months to (Dollars in thousands) Securities Securities Liability at Risk Maturity Maturing: Over 90 days $ 11,724 $ 12,201 $ 10,000 $ 2,201 30

Offsetting of Financial Liabili

Offsetting of Financial Liabilities	12 Months Ended
	Dec. 31, 2019
Offsetting of Financial Liabilities
Offsetting of Financial Liabilities	(15) Offsetting of Financial Liabilities Securities sold under agreements to repurchase are subject to a right of offset in the event of default. See Note 14, Securities Sold Under Agreements to Repurchase, for additional information. Net Amount of Gross Amount Not Offset in the Gross Amount Gross Amount Liabilities Balance Sheet of Recognized Offset in the Presented in the Financial Cash Collateral (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Pledged Net Amount December 31, 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 $ — $ —

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Taxes
Income Taxes	(16) Income Taxes Allocation of federal and state income taxes between current and deferred provisions is as follows: (Dollars in thousands) 2019 2018 Current Federal $ 3,366 $ 3,752 State 1,479 1,530 4,845 5,282 Deferred Federal 1,147 600 State 319 229 1,466 829 Total $ 6,311 $ 6,111 The federal statutory corporate tax rate for the years ended December 31, 2019 and 2018 was 21%. A reconciliation of the tax provision based on the statutory corporate rate on pretax income and the provision for taxes as shown in the accompanying Consolidated Statements of Income is as follows: (Dollars in thousands) 2019 2018 Income tax expense at statutory rate $ 5,944 $ 5,318 Income tax effect of: Other tax-exempt income (263) (182) Share-based compensation (69) 1 Meal and entertainment expenses 82 88 State income taxes, net of federal income tax benefits 1,301 1,246 Tax benefit from the exercise of stock options (297) (134) Tax benefit from tax depreciation study (1) (402) — Other 15 (226) Total income tax expense $ 6,311 $ 6,111 Effective income tax rate 22.29 % 24.13 % (1) The Company conducted a study that reduced the asset lives used to calculate depreciation. The Company filed an amended tax return and was able to deduct the increase in depreciation expense at the 2017 federal corporate tax rate of 35% rather than the current 21% federal corporate tax rate. The components of income taxes payable (receivable) are as follows: December 31, (Dollars in thousands) 2019 2018 Current taxes payable: Federal $ 767 $ 621 State 1,538 1,786 $ 2,305 $ 2,407 Deferred taxes receivable: Federal $ (1,651) $ (2,836) State (968) (1,300) $ (2,619) $ (4,136) The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: December 31, (Dollars in thousands) 2019 2018 Deferred tax assets: Premises and equipment $ 547 $ 1,037 Hawaii franchise tax 479 468 Unfunded pension liability 925 691 Allowance for loan losses 722 703 Impaired asset write-down — 765 Employee benefit plans 2,692 2,601 Equity incentive plan 350 399 Unrealized losses on securities available-for-sale — 32 Deferred compensation 413 480 Net lease liability 161 — Other 8 159 6,297 7,335 Deferred tax liabilities: Deferred loan costs 3,078 2,844 FHLB stock dividends 126 126 Prepaid expense 155 169 Unrealized gain on securities available-for-sale 185 — Premiums on loans sold 134 60 3,678 3,199 Net deferred tax assets $ 2,619 $ 4,136 Deferred tax assets and liabilities at December 31, 2019 and 2018 were calculated using federal corporate tax rates of 21%. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income are reduced. There was no valuation allowance for deferred tax assets as of December 31, 2019 and 2018.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2019
Employee Benefit Plans
Employee Benefit Plans	(17) Employee Benefit Plans The Company has a noncontributory defined benefit pension plan (Pension Plan) that covers most employees with at least one year of service. The benefits are based on years of service and the employees’ compensation during the service period. The Company’s policy is to accrue the actuarially determined pension costs and to fund pension costs within regulatory guidelines. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in accumulated other comprehensive income (AOCI) beginning in 2006 and amortized to net periodic benefit cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under the plan are reasonable based on its experience and market conditions. In 2008, the Board of Directors approved changes to the Company’s defined benefit pension plan. Effective December 31, 2008, there are no further accruals of benefits for any participants and benefits do not increase with any additional years of service. Employees already enrolled in the Pension Plan as of December 31, 2008 will be 100% vested if they have at least five years of service. For employees with less than five years of service, vesting would occur at the employee’s five-year anniversary date. In addition, the Company sponsors a Supplemental Employee Retirement Plan (SERP), a noncontributory supplemental retirement benefit plan, which covers certain current and former employees of the Company for amounts in addition to those provided under the Pension Plan. The following table sets forth the status of the Pension Plan and SERP at the dates indicated: Pension Plan SERP December 31, (Dollars in thousands) 2019 2018 2019 2018 Accumulated benefit obligation at end of year $ 21,367 $ 18,713 $ 9,702 $ 9,473 Change in projected benefit obligation: Benefit obligation at beginning of year $ 18,713 $ 19,314 $ 9,473 $ 9,242 Service cost 164 141 84 97 Interest cost 811 728 162 151 Actuarial loss (gain) 2,558 (611) — — Benefits paid (879) (859) (17) (17) Benefit obligation at end of year 21,367 18,713 9,702 9,473 Change in plan assets: Fair value of plan assets at beginning of year 17,500 15,927 — — Actual return on plan assets 2,814 (968) — — Employer contributions — 3,400 17 17 Benefits paid (879) (859) (17) (17) Fair value of plan assets at end of year 19,435 17,500 — — Funded status at end of year $ (1,932) $ (1,213) $ (9,702) $ (9,473) Amounts recognized in the Consolidated Balance Sheets: Accounts payable and accrued expenses - liability $ (1,932) $ (1,213) $ (9,702) $ (9,473) Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 11,008 $ 10,380 $ — $ — Prior service cost 139 144 — — Accumulated other comprehensive loss, before tax $ 11,147 $ 10,524 $ — $ — The following table sets forth the changes recognized in accumulated other comprehensive loss for the years indicated: Pension Plan Year Ended December 31, (Dollars in thousands) 2019 2018 Accumulated other comprehensive loss at beginning of year, before tax $ 10,524 $ 9,245 Actuarial net loss arising during the period 961 1,562 Amortizations (recognized in net periodic benefit cost): Actuarial loss (333) (278) Prior service cost (5) (5) Total recognized in other comprehensive loss 623 1,279 Accumulated other comprehensive loss at end of year, before tax $ 11,147 $ 10,524 For the years ended December 31, 2019 and 2018, the following weighted average assumptions were used to determine benefit obligations at the end of the year: Pension Plan SERP Year Ended December 31, 2019 2018 2019 2018 Assumptions used to determine the year-end benefit obligations: Discount rate 3.30 % 4.30 % 5.02 % 5.03 % Rate of compensation increase N/A N/A 5.00 % 5.00 % The Company does not expect any plan assets to be returned to the Company during calendar year 2020. The dates used to determine retirement measurements for the Pension Plan were December 31, 2019 and 2018. The Company’s investment strategy for the defined benefit retirement plan is to maintain a consistent rate of return with primary emphasis on capital appreciation and secondary emphasis on income to enhance the purchasing power of the plan’s assets over the long-term and to preserve capital. The investment policy establishes a target allocation for each asset class that is reviewed periodically and rebalanced when considered appropriate. Normal target allocations at December 31, 2019 were 55% domestic equity securities, 10% international equity securities and 35% bonds. Equity securities primarily include stocks, investment in exchange traded funds and large-cap, mid-cap and small-cap mutual funds. Bonds include U.S. Treasuries, mortgage-backed securities and corporate bonds of companies in diversified industries. Other types of investments include money market funds and savings accounts opened with the Company. As of December 31, 2019 and 2018, the Pension Plan’s assets measured at fair value were classified as follows: Fair Value of Measurements at Report Date Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Total Fair Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) December 31, 2019: Cash $ 3,021 $ 3,021 $ — $ — Equities 11,576 11,576 — — Mutual funds (1) 4,838 4,838 — — Total $ 19,435 $ 19,435 $ — $ — December 31, 2018: Cash $ 4,128 $ 4,128 $ — $ — Equities 9,008 9,008 — — Mutual funds (1) 4,364 4,364 — — Total $ 17,500 $ 17,500 $ — $ — (1) This category includes mutual funds that invest in equities and bonds. The mutual fund managers have the ability to change the amounts invested in equities and bonds depending on their investment outlook. Estimated future benefit payments reflecting expected future service at December 31, 2019 are as follows: Pension (Dollars in thousands) Plan SERP 2020 $ 1,195 $ 17 2021 1,263 8,639 2022 1,303 160 2023 1,309 149 2024 1,317 149 2025 - 2029 6,447 743 Total $ 12,834 $ 9,857 For the years ended December 31, 2019 and 2018, the following weighted average assumptions were used to determine net periodic benefit cost for the fiscal years shown: Pension Plan SERP Year Ended December 31, (Dollars in thousands) 2019 2018 2019 2018 Assumptions used to determine the net periodic benefit cost: Discount rate 4.30 % 3.70 % 5.02 % 5.02 % Expected return on plan assets 7.25 7.25 - - Rate of compensation increase N/A N/A 5.00 5.00 The components of net periodic benefit cost were as follows: Pension Plan SERP Year Ended December 31, (Dollars in thousands) 2019 2018 2019 2018 Net periodic benefit cost (income) for the year: Service cost $ 164 $ 141 $ 84 $ 97 Interest cost 811 728 162 151 Expected return on plan assets (1,217) (1,204) — — Amortization of prior service cost 5 5 — — Recognized actuarial loss 333 278 — — Recognized curtailment loss — — — — Net periodic benefit cost (income) for the year: $ 96 $ (52) $ 246 $ 248 The components of net periodic benefit cost other than the service cost component are included in other general and administrative expenses in the Consolidated Statements of Income. The service cost component of net periodic benefit costs is included in salaries and employee benefits. The estimated prior service cost and net actuarial loss that will be amortized from AOCI into net periodic pension benefit cost in 2020 are $5,000 and $337,000, respectively. The expected return on plan assets is based on the weighted-average long-term rates of return for the types of assets held in the plan. The expected return on plan assets is adjusted when there is a change in the expected long-term rate of return or in the composition of assets held in the plan. The discount rate is based on the return of high-quality fixed-income investments that can be used to fund the benefit payments under the Company’s defined benefit plan. The Company does not expect to make any contributions to the defined benefit pension plan in 2020. The Company expects to make a $17,000 contribution to the SERP in 2020 to cover actual benefit payments. The Company also has a 401(k) defined contribution plan and profit sharing plan covering all employees after one year of service. The 401(k) plan provides for employer matching contributions, as determined by the Company, based on a percentage of employees’ contributions subject to a maximum amount defined in the plan agreement. The Company’s 401(k) matching contributions, based on 5% of employees’ contributions for 2019 and 2018 amounted to $62,000 and $60,000, respectively. The Company contributes to the profit sharing plan an amount determined by the Board of Directors. No contributions were made to the profit sharing plan for years ended December 31, 2019 and 2018.

Employee Stock Ownership Plan

Employee Stock Ownership Plan	12 Months Ended
	Dec. 31, 2019
Employee Stock Ownership Plan
Employee Stock Ownership Plan
Employee Stock Ownership Plan	(18) Employee Stock Ownership Plan Effective January 1, 2009, Territorial Savings Bank adopted an Employee Stock Ownership Plan (ESOP) for eligible employees. The ESOP borrowed $9.8 million from the Company and used those funds to acquire 978,650 shares, or 8%, of the total number of shares issued by the Company in its initial public offering. The shares were acquired at a price of $10.00 per share. The loan is secured by the shares purchased with the loan proceeds and will be repaid by the ESOP over the 20-year term of the loan with funds from Territorial Savings Bank’s contributions to the ESOP and dividends payable on the shares. The interest rate on the ESOP loan is an adjustable rate equal to the prime rate, as published in The Wall Street Journal. The interest rate adjusts annually and will be the prime rate on the first business day of the calendar year. Shares purchased by the ESOP are held by a trustee in an unallocated suspense account, and shares are released annually from the suspense account on a pro-rata basis as principal and interest payments are made by the ESOP to the Company. The trustee allocates the shares released among participants on the basis of each participant’s proportional share of compensation relative to all participants. As shares are committed to be released from the suspense account, Territorial Savings Bank reports compensation expense based on the average fair value of shares released with a corresponding credit to stockholders’ equity. The shares committed to be released are considered outstanding for earnings per share computations. Compensation expense recognized for the years ended December 31, 2019 and 2018 amounted to $1.4 million and $1.5 million, respectively. Shares held by the ESOP trust were as follows: December 31, 2019 2018 Allocated shares 466,807 446,041 Unearned shares 440,397 489,329 Total ESOP shares 907,204 935,370 Fair value of unearned shares, in thousands $ 13,626 $ 12,713 The ESOP restoration plan is a non-qualified plan that provides supplemental benefits to certain executives who are prevented from receiving the full benefits contemplated by the ESOP’s benefit formula. The supplemental cash payments consist of payments representing shares that cannot be allocated to the participants under the ESOP due to IRS limitations imposed on tax-qualified plans. We accrue for these benefits over the period during which employees provide services to earn these benefits. For the years ended December 31, 2019 and 2018, we accrued $350,000 and $204,000, respectively, for the ESOP restoration plan.

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2019
2010 Equity Incentive Plan
Share-Based Compensation
Share-Based Compensation	(19) Share-Based Compensation On August 19, 2010, Territorial Bancorp Inc. adopted the 2010 Equity Incentive Plan, which provides for awards of stock options and restricted stock to key officers and outside directors. In accordance with the Compensation — Stock Compensation topic of the FASB ASC, the cost of the 2010 Equity Incentive Plan is based on the fair value of the awards on the grant date. The fair value of restricted stock is based on the closing price of the Company’s stock on the grant date. The fair value of stock options is estimated using a Black-Scholes option pricing model using assumptions for dividend yield, stock price volatility, risk-free interest rate and option term. These assumptions are based on our judgments regarding future events, are subjective in nature, and cannot be determined with precision. The cost of the awards will be recognized on a straight-line basis over the three-, five- or six-year vesting period during which participants are required to provide services in exchange for the awards. The Company recognized compensation expense, measured as the fair value of the share-based award on the date of grant, on a straight-line basis over the vesting period. Share-based compensation is recorded in the statement of income as a component of salaries and employee benefits with a corresponding increase in stockholders’ equity. The table below presents information on compensation expense and the related tax benefit for all share-based awards: (In thousands) 2019 2018 Compensation expense $ 571 $ 341 Income tax benefit 156 93 Shares of our common stock issued under the 2010 Equity Incentive Plan shall be authorized shares. The maximum number of shares that will be awarded under the plan is 1,862,637 shares. Stock Options The table below presents the stock option activity of the Company: Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2017 411,543 $ 17.48 2.73 $ 5,509 Granted — — — — Exercised 73,889 17.36 — 973 Forfeited — — — — Expired — — — — Options outstanding at December 31, 2018 337,654 $ 17.51 1.74 $ 2,859 Granted — — — — Exercised 221,245 17.50 — 2,483 Forfeited — — — — Expired — — — — Options outstanding at December 31, 2019 116,409 $ 17.53 0.72 $ 1,562 Options vested and exercisable at December 31, 2019 116,409 $ 17.53 0.72 $ 1,562 The following summarizes certain stock option activity of the Company: (In thousands) 2019 2018 Intrinsic value of stock options exercised $ 2,483 $ 973 Proceeds received from stock options exercised 3,873 1,283 Tax benefits realized from stock options exercised 534 229 Total fair value of stock options that vested — 35 During the year ended December 31, 2019, the Company issued 91,840 shares of common stock in exchange for 221,245 stock options and 129,405 common shares. Pursuant to the provisions of our equity incentive plan, optionees are permitted to use the value of common stock they own in a stock swap transaction or use a net settlement method to pay the exercise price of stock options. As of December 31, 2019, the Company had no unrecognized compensation costs related to the stock option plan. Restricted Stock Restricted stock is accounted for as a fixed grant using the fair value of the Company’s stock at the time of grant. Unvested restricted stock may not be disposed of or transferred during the vesting period. Restricted stock carries the right to receive dividends, although dividends attributable to restricted stock may be retained by the Company until the shares vest, at which time they are paid to the award recipient. The table below presents the restricted stock activity: Weighted Average Grant Restricted Date Fair Stock Value Unvested at December 31, 2017 10,806 $ 29.16 Granted 10,019 30.73 Vested 4,401 28.63 Forfeited — — Unvested at December 31, 2018 16,424 $ 30.26 Unvested at December 31, 2018 16,424 $ 30.26 Granted 10,366 27.30 Vested 6,541 30.14 Forfeited — — Unvested at December 31, 2019 20,249 $ During the year ended December 31, 2019, the Company issued 10,336 shares of restricted stock to certain members of executive management under the 2010 Equity Incentive Plan. The fair value of the restricted stock is based on the value of the Company’s stock on the date of grant. Restricted stock will vest over three years from the date of the grant. As of December 31, 2019, the Company had $365,000 of unrecognized compensation costs related to time-vested restricted stock. The unrecognized compensation costs are expected to be recognized over a weighted average period of 1.7 years. During the year ended December 31, 2019, the Company issued 12,438 of performance-based restricted stock units (PRSUs) to certain members of executive management under the 2010 Equity Incentive Plan. These PRSUs will vest in the first quarter of 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% to 150% of the target award. For the PRSUs, an estimate is made of the number of shares expected to vest based on the probability that the performance criteria will be achieved to determine the amount of compensation expense to be recognized. This estimate is re-evaluated quarterly and total compensation expense is adjusted for any change in the current period. The table below presents the PRSUs that will vest on a performance condition: Performance- Based Restricted Stock Units Weighted Based on a Average Grant Performance Date Fair Condition Value Unvested at December 31, 2017 11,520 $ 29.53 Granted 12,018 30.73 Vested — — Forfeited — — Unvested at December 31, 2018 23,538 $ 30.14 Unvested at December 31, 2018 23,538 $ 30.14 Granted 12,438 27.30 Vested — — Forfeited — — Unvested at December 31, 2019 35,976 $ 29.16 The fair value of these PRSUs is based on the fair value of the Company’s stock on the date of grant. As of December 31, 2019, the Company had $311,000 of unrecognized compensation costs related to these PRSUs. The unrecognized compensation costs are expected to be recognized over a weighted average period of 1.9 years. Performance will be measured over a three-year period and will be cliff vested. During the year ended December 31, 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 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 Unvested at December 31, 2017 2,879 $ 24.44 Granted 3,005 28.32 Vested — — Forfeited — — Unvested at December 31, 2018 5,884 $ 26.42 Unvested at December 31, 2018 5,884 $ 26.42 Granted 3,110 24.45 Vested — — Forfeited — — Unvested at December 31, 2019 8,994 $ 25.74 As of December 31, 2019, the Company had $67,000 of unrecognized compensation costs related to the PRSUs that are based on a market condition. The unrecognized compensation costs are expected to be recognized over a weighted average period of 1.9 years. Performance will be measured over a three-year period and will be cliff vested. On May 16, 2019, shareholders of Territorial Bancorp Inc. adopted the 2019 Equity Incentive Plan, which provides for the award of 15,000 stock options and restricted stock to key officers and directors. As of December 31, 2019, no awards have been granted under the 2019 Equity Incentive Plan.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2019
Earnings Per Share
Earnings Per Share	(20) Earnings Per Share The table below presents the information used to compute basic and diluted earnings per share: For the Year Ended December 31, (Dollars in thousands, except per share data) 2019 2018 Net income $ 21,995 $ 19,212 Income allocated to participating securities (149) (90) Net income available to common shareholders $ 21,846 $ 19,122 Weighted-average number of shares used in: Basic earnings per share 9,196,674 9,219,123 Dilutive common stock equivalents: Stock options and restricted stock units 128,940 181,272 Diluted earnings per share 9,325,614 9,400,395 Net income per common share, basic $ 2.38 $ 2.07 Net income per common share, diluted $ 2.34 $ 2.03

Other Comprehensive Loss

Other Comprehensive Loss	12 Months Ended
	Dec. 31, 2019
Other Comprehensive Loss
Other Comprehensive Loss	(21) Other Comprehensive Loss The table below presents the changes in the components of accumulated other comprehensive loss, net of taxes: Unfunded Unrealized Pension (Gain)/Loss on (Dollars in thousands) Liability Securities Total December 31, 2019: Balances at beginning of year $ 7,721 $ 88 $ 7,809 Other comprehensive loss (income), net of taxes 457 (598) (141) Net current period other comprehensive loss (income) 457 (598) (141) Balances at end of year $ 8,178 $ (510) $ 7,668 December 31, 2018: Balances at beginning of year $ 5,657 $ 37 $ 5,694 Other comprehensive loss, net of taxes 938 42 980 Amounts reclassified from retained earnings 1,126 9 1,135 Net current period other comprehensive loss 2,064 51 2,115 Balances at end of year $ 7,721 $ 88 $ 7,809 The table below presents the tax effect on each component of other comprehensive loss (income): Year Ended December 31, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unfunded pension liability $ 623 $ (166) $ 457 $ 1,279 $ (341) $ 938 Unrealized (gain)/loss on securities (815) 217 (598) 57 (15) 42 Total $ (192) $ 51 $ (141) $ 1,336 $ (356) $ 980

Commitments

Commitments	12 Months Ended
	Dec. 31, 2019
Commitments
Commitments	(22) Commitments (a) Loan Commitments Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any terms or conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on an individual basis. The Company’s policy is to require suitable collateral, primarily real estate, to be provided by customers prior to disbursement of approved loans. At December 31, 2019 and 2018, the Company had loan commitments aggregating to $8.7 million (interest rates from 3.375% to 4.000%) and $7.9 million (interest rates from 4.125% to 5.000%), respectively, primarily consisting of fixed-rate residential first mortgage loans. In addition to commitments to originate loans, at December 31, 2019 and 2018, the Company had $24.5 million and $26.9 million, respectively, in unused lines of credit to borrowers. (b) Reserve Requirements The Company is required by the Federal Reserve Bank to maintain reserves based on the amount of deposits held. The reserve requirement at December 31, 2019 and 2018 was $13.5 million and $11.9 million, respectively, and the Company met such requirements.

Regulatory Capital and Supervis

Regulatory Capital and Supervision	12 Months Ended
	Dec. 31, 2019
Regulatory Capital and Supervision
Regulatory Capital and Supervision	(23) Regulatory Capital and Supervision Territorial Savings Bank and the Company are subject to various regulatory capital requirements, including a risk-based capital measure. The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to broad risk categories. Effective January 1, 2015, the well capitalized threshold for Tier 1 risk-based capital was increased from 6.0% to 8.0% and a new capital standard, common equity tier 1 risk-based capital, was implemented with a 6.5% ratio requirement for a financial institution to be considered well capitalized. Additionally, effective January 1, 2015, consolidated regulatory capital requirements identical to those applicable to the subsidiary depository institutions became applicable to savings and loan holding companies over $1.0 billion in assets, such as the Company. This asset level was increased to $3.0 billion in 2018. Accordingly, the Company is no longer subject to regulatory capital requirements because its total assets are less than $3.0 billion. The capital requirements became fully-phased in on January 1, 2019. At December 31, 2019 and 2018, Territorial Savings Bank exceeded all of the fully-phased in regulatory captial requirments and is considered to be “well capitalized” under regulatory guidelines. In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements. The capital conservation buffer requirement was being phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increased each year until fully implemented at 2.5% on January 1, 2019. The table below presents the fully-phased in capital required to be considered “well-capitalized” and meet the capital conservation buffer requirement as a percentage of total and risk-weighted assets and the percentage and the total amount of capital maintained for Territorial Savings Bank and the Company at December 31, 2019 and 2018: (Dollars in thousands) Required Ratio Actual Amount Actual Ratio December 31, 2019: Tier 1 Leverage Capital Territorial Savings Bank 5.00 % $ 227,507 10.92 % Territorial Bancorp Inc. $ 251,558 12.06 % Common Equity Tier 1 Risk-Based Capital (1) Territorial Savings Bank 9.00 % $ 227,507 23.31 % Territorial Bancorp Inc. $ 251,558 25.77 % Tier 1 Risk-Based Capital (1) Territorial Savings Bank 10.50 % $ 227,507 23.31 % Territorial Bancorp Inc. $ 251,558 25.77 % Total Risk-Based Capital (1) Territorial Savings Bank 12.50 % $ 230,304 23.59 % Territorial Bancorp Inc. $ 254,355 26.06 % December 31, 2018: Tier 1 Leverage Capital Territorial Savings Bank 5.00 % $ 225,694 11.09 % Territorial Bancorp Inc. $ 242,888 11.92 % Common Equity Tier 1 Risk-Based Capital (1) Territorial Savings Bank 9.00 % $ 225,694 23.50 % Territorial Bancorp Inc. $ 242,888 25.29 % Tier 1 Risk-Based Capital (1) Territorial Savings Bank 10.50 % $ 225,694 23.50 % Territorial Bancorp Inc. $ 242,888 25.29 % Total Risk-Based Capital (1) Territorial Savings Bank 12.50 % $ 228,423 23.78 % Territorial Bancorp Inc. $ 245,617 25.57 % (1) The required Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital and Total Risk-Based Capital ratios are based on the fully-phased in capital ratios in the Basel III capital regulations plus the 2.50% capital conservation buffer that became effective on January 1, 2019. Prompt Corrective Action provisions define specific capital categories based on an institution’s capital ratios. However, the regulators may impose higher minimum capital standards on individual institutions or may downgrade an institution from one capital category to a lower category because of safety and soundness concerns. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s Consolidated Financial Statements. Prompt Corrective Action provisions impose certain restrictions on institutions that are undercapitalized. The restrictions imposed become increasingly more severe as an institution’s capital category declines from “undercapitalized” to “critically undercapitalized.” At December 31, 2019 and 2018, the Bank’s capital ratios exceeded the minimum capital thresholds for a “well-capitalized” institution. There are no conditions or events that have changed the institution’s category under the capital guidelines. Depending on the amount of dividends to be paid, the Bank is required to either notify or make application to the Federal Reserve Bank before dividends are paid to the parent company. Legislation enacted in 2018 requires the federal banking agencies, including the Federal Reserve Board, to establish a “community bank leverage ratio” between 8% to 10% of average total consolidated assets for qualifying institutions with assets of less than $10 billion. Institutions with capital meeting the specified requirements and electing to follow the alternative framework would be deemed to comply with the applicable regulatory capital requirements, including the risk based requirements. The federal regulators have adopted 9% as the applicable ratio, effective March 31, 2020. The Bank is not planning to adopt the alternative framework, with the applicable regulatory requirements.

Contingencies

Contingencies	12 Months Ended
	Dec. 31, 2019
Contingencies
Contingencies	(24) Contingencies The Company is involved in various claims and legal actions arising out of the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s Consolidated Balance Sheets or Consolidated Statements of Income.

Revenue Recognition

Revenue Recognition	12 Months Ended
	Dec. 31, 2019
Revenue Recognition
Revenue Recognition	(25) 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 Year ended December 31, 2019 Revenue from contracts with customers $ 1,378 $ 150 $ 1,528 Other revenue 559 460 1,019 Total $ 1,937 $ 610 $ 2,547 Year ended December 31, 2018 Revenue from contracts with customers $ 1,401 $ 138 $ 1,539 Other revenue 485 158 643 Total $ 1,886 $ 296 $ 2,182

Leases

Leases	12 Months Ended
	Dec. 31, 2019
Leases
Leases	(26) Leases The table below presents lease costs and other information as of December 31, 2019: (Dollars in thousands) December 31, 2019 Lease Costs: Operating lease costs $ 3,130 Short-term lease costs 57 Variable lease costs 129 Total lease costs $ 3,316 Cash paid for amounts included in measurement of lease liabilities $ 2,991 ROU assets obtained in exchange for new operating lease liabilities $ 14,341 Total rental expense comprised minimum rentals of $3.1 million for the year ended December 31, 2018. At December 31, 2019, future minimum rental commitments under noncancellable operating leases are as follows: (Dollars in thousands) 2020 $ 3,171 2021 2,632 2022 2,374 2023 2,088 2024 1,801 Thereafter 3,112 Total 15,178 Less present value discount 2,995 Present value of leases $ 12,183 The table below presents other lease related information as of December 31, 2019: December 31, 2019 Weighted-average remaining lease term (years) Weighted-average discount rate % The Company leases to a tenant certain property that it owns. Future minimum rental income for this noncancellable leae is as follows: (Dollars in thousands) 2020 $ 110 2021 110 2022 — 2023 — 2024 — Thereafter — Total $ 220 Rental income comprised of minimum rentals for 2019 and 2018 was approximately $110,000 each year.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2019
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(27) 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 December 31, 2019 Assets Cash and cash equivalents $ 44,806 $ 44,806 $ 44,806 $ — $ — Investment securities available for sale 8,628 8,628 — 8,628 — Investment securities held to maturity 363,883 371,305 — 371,305 — Loans held for sale 470 480 — 480 — Loans receivable, net 1,584,784 1,627,903 — — 1,627,903 FHLB stock 8,723 8,723 — 8,723 — FRB stock 3,128 3,128 — 3,128 — Accrued interest receivable 5,409 5,409 32 952 4,425 Interest rate contracts 5 5 — 5 — Liabilities Deposits 1,631,933 1,632,741 — 1,167,990 464,751 Advances from the Federal Home Loan Bank 156,000 156,906 — 156,906 — Securities sold under agreements to repurchase 10,000 9,968 — 9,968 — Accrued interest payable 397 397 — 47 350 Interest rate contracts 5 5 — 5 — 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 December 31, 2019 and 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 December 31, 2019 Interest rate contracts — assets $ — $ 5 $ — $ 5 Interest rate contracts — liabilities — (5) — (5) Investment securities available for sale — 8,628 — 8,628 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 December 31, 2019 and the related losses for the year ended December 31, 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 December 31, 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 December 31, 2019: Mortgage servicing assets $ 452 Discounted cash flow Discount rate 10.25% Prepayment speed (CPR) 9.11 - 13.06 Annual cost to service (per loan, in dollars) $ 75

Parent Company Only

Parent Company Only	12 Months Ended
	Dec. 31, 2019
Parent Company Only
Parent Company Only	(28) Parent Company Only Presented below are the condensed balance sheet, statement of income, and statement of cash flows for Territorial Bancorp Inc. Condensed Balance Sheet December 31, (Dollars in thousands) 2019 2018 Assets Cash $ 22,602 $ 16,389 Investment in Territorial Savings Bank 219,838 217,884 Receivable from Territorial Savings Bank 1,377 741 Prepaid expenses and other assets 233 154 Total assets $ 244,050 $ 235,168 Liabilities and Equity Other liabilities $ 160 $ 89 Equity 243,890 235,079 Total liabilities and equity $ 244,050 $ 235,168 Condensed Statement of Income For the Year Ended December 31, (Dollars in thousands) 2019 2018 Interest and dividend income: Dividends from Territorial Savings Bank $ 21,250 $ 14,500 Interest-earning deposit with Territorial Savings Bank 35 43 Total interest and dividend income 21,285 14,543 Noninterest expense: Salaries 43 38 Other general and administrative expenses 676 791 Total noninterest expense 719 829 Income before income taxes and equity in undistributed earnings in subsidiaries 20,566 13,714 Income taxes (177) (107) Income before equity in undistributed earnings in subsidiaries 20,743 13,821 Equity in undistributed earnings of Territorial Savings Bank, net of dividends 1,252 5,391 Net income $ 21,995 $ 19,212 Condensed Statement of Cash Flows For the Year Ended December 31, (Dollars in thousands) 2019 2018 Cash flows from operating activities: Net income $ 21,995 $ 19,212 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of Territorial Savings Bank, net of dividends (1,252) (5,391) ESOP expense 1,398 1,456 Net (increase) decrease in prepaid expenses and other assets (715) 785 Net increase (decrease) in other liabilities (97) (6) Net cash provided by operating activities 21,329 16,056 Cash flows from investing activities: Investment in Territorial Savings Bank — — Net cash used in investing activities — — Cash flows from financing activities: Proceeds from issuance of common stock 170 — Repurchases of common stock (1,597) (9,270) Cash dividends paid (13,689) (10,490) Net cash used in financing activities (15,116) (19,760) Net increase (decrease) in cash 6,213 (3,704) Cash at beginning of the period 16,389 20,093 Cash at end of the period $ 22,602 $ 16,389

Unaudited Quarterly Financial I

Unaudited Quarterly Financial Information	12 Months Ended
	Dec. 31, 2019
Unaudited Quarterly Financial Information
Unaudited Quarterly Financial Information	(29) Unaudited Quarterly Financial Information First Second Third Fourth Quarter Quarter Quarter Quarter Full Year (Dollars in thousands, except per share data) 2019: Interest income $ 18,705 $ 19,114 $ 18,948 $ 18,801 $ 75,568 Interest expense 3,869 4,452 4,397 4,309 17,027 Net interest income 14,836 14,662 14,551 14,492 58,541 Provision (reversal of provision) for loan losses 5 (51) 111 (4) 61 Net interest income after provision for loan losses 14,831 14,713 14,440 14,496 58,480 Noninterest income 3,440 1,273 2,102 1,017 7,832 Noninterest expense 9,774 9,511 9,401 9,320 38,006 Income before income taxes 8,497 6,475 7,141 6,193 28,306 Income taxes 1,973 1,415 1,775 1,148 6,311 Net income 6,524 5,060 5,366 5,045 21,995 Basic earnings per share 0.71 0.55 0.58 0.54 2.38 Diluted earnings per share 0.70 0.54 0.57 0.53 2.34 Cash dividends declared per common share 0.22 0.32 0.22 0.73 1.49 First Second Third Fourth Quarter Quarter Quarter Quarter Full Year (Dollars in thousands, except per share data) 2018: Interest income $ 18,234 $ 18,182 $ 18,278 $ 18,607 $ 73,301 Interest expense 2,995 3,275 3,517 3,742 13,529 Net interest income 15,239 14,907 14,761 14,865 59,772 Provision (reversal of provision) for loan losses 9 60 (50) 100 119 Net interest income after provision for loan losses 15,230 14,847 14,811 14,765 59,653 Noninterest income 742 837 746 839 3,164 Noninterest expense 9,393 9,374 9,503 9,224 37,494 Income before income taxes 6,579 6,310 6,054 6,380 25,323 Income taxes 1,759 1,347 1,268 1,737 6,111 Net income 4,820 4,963 4,786 4,643 19,212 Basic earnings per share 0.52 0.54 0.52 0.50 2.07 Diluted earnings per share 0.51 0.53 0.51 0.50 2.03 Cash dividends declared per common share 0.20 0.30 0.22 0.42 1.14

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events
Subsequent Events	(30) Subsequent Events On January 30, 2020, the Board of Directors of Territorial Bancorp Inc. declared a quarterly cash dividend of $0.23 per share of common stock. The dividend was paid on February 27, 2020 to stockholders of record as of February 13, 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Principles of Consolidation	(b) Principles of Consolidation The Consolidated Financial Statements include the accounts and results of operations of Territorial Bancorp Inc. and Territorial Savings Bank and its wholly-owned subsidiaries, Territorial Real Estate Co., Inc. and Territorial Financial Services, Inc. Significant intercompany balances and transactions have been eliminated in consolidation.
Cash and Cash Equivalents	(c) Cash and Cash Equivalents Cash and cash equivalents includes cash and due from banks, interest-bearing deposits in other banks, federal funds sold, and short-term, highly liquid investments with original maturities of three months or less.
Investment Securities	(d) Investment Securities The Company classifies and accounts for its investment securities as follows: (1) held-to-maturity debt securities in which the Company has the positive intent and ability to hold to maturity are reported at amortized cost; (2) trading securities that are purchased for the purpose of selling in the near term are reported at fair value, with unrealized gains and losses included in current earnings; and (3) available-for-sale securities not classified as either held-to-maturity or trading securities are reported at fair value, with unrealized gains and losses excluded from current earnings and reported as a separate component of equity. At December 31, 2019 and 2018, the Company classified all of its investments, except $8.6 million and $2.6 million of securities, respectively, as held-to-maturity. A decline in the market value of any available-for-sale or held-to-maturity security below cost, that is deemed to be other than temporary, results in an impairment to reduce the carrying amount to fair value. To determine whether impairment is other than temporary, the Company considers the type of the investment, the cause of the decline in value and the amount and duration of the decline in value. It also considers whether it has the intent and ability not to sell and would not be required to sell for a sufficient period of time to recover the remaining amortized cost basis. Gains or losses on the sale of investment securities are computed using the specific-identification method. The Company amortizes premiums and accretes discounts associated with investment securities using the interest method over the contractual life of the respective investment security. Such amortization and accretion is included in the interest income line item in the Consolidated Statements of Income. Interest income is recognized when earned.
Loans Receivable	(e) Loans Receivable This policy applies to all loan classes. Loans receivable are stated at the principal amount outstanding, less the allowance for loan losses, loan origination fees and costs, and commitment fees. Interest on loans receivable is accrued as earned. The Company has a policy of placing loans on a nonaccrual basis when 90 days or more contractually delinquent or when, in the opinion of management, collection of all or part of the principal balance appears doubtful. For nonaccrual loans, the Company records payments received as a reduction in principal. The Company, considering current information and events regarding the borrowers’ ability to repay their obligations, considers a loan to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is considered to be impaired, the amount of the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if the loan is considered to be collateral dependent, based on the fair value of the collateral less estimated costs to sell. Impairment losses are written off against the allowance for loan losses. For nonaccrual impaired loans, the Company records payments received as a reduction in principal. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current and full payment of principal and interest is expected.
Loans Held for Sale	(f) Loans Held for Sale Loans held for sale are stated at the lower of aggregate cost or market value. Net fees and costs of originating loans held for sale are deferred and are included in the basis for determining the gain or loss on sales of loans held for sale.
Deferred Loan Origination Fees and Unearned Loan Discounts	(g) Deferred Loan Origination Fees and Unearned Loan Discounts Loan origination and commitment fees and certain direct loan origination costs are being deferred, and the net amount is recognized over the life of the related loan as an adjustment to yield. Net deferred loan fees are amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Net unamortized fees on loans paid in full are recognized as a component of interest income.
Real Estate Owned	(h) Real Estate Owned Real estate owned is valued at the time of foreclosure at fair value, less estimated cost to sell, thereby establishing a new cost basis. The Company obtains appraisals based on recent comparable sales to assist management in estimating the fair value of real estate owned. Subsequent to acquisition, real estate owned is valued at the lower of cost or fair value, less estimated cost to sell. Declines in value are charged to expense through a direct write-down of the asset. Costs related to holding real estate are charged to expense while costs related to development and improvements are capitalized. Gains from the sale of real estate owned, if any, are recognized when title has passed, minimum down payment requirements are met, the terms of any notes received are such as to satisfy continuing investment requirements, and the Company is relieved of any requirements for continued involvement with the properties. If the minimum down payment or the continuing investment is not adequate to meet the criteria specified in the Property, Plant and Equipment topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), the Company will defer income recognition and account for such sales using alternative methods, such as installment, deposit, or cost recovery.
Allowance for Loan Losses	(i) Allowance for Loan Losses The Company maintains an allowance adequate to cover management’s estimate of probable loan losses as of the balance sheet date. The Company’s allowance for loan losses is maintained at a level considered adequate to provide for losses that can be estimated based upon specific and general conditions. All loan losses are charged, and all recoveries are credited, to the allowance for loan losses. Additions to the allowance for loan losses are provided by charges to income based on various factors, which, in the Company’s judgment, deserve current recognition in estimating probable losses. Charge-offs to the allowance are made when management determines that collectability of all or a portion of a loan is doubtful and available collateral is insufficient to repay the loan. General allowances are established for loan losses on a portfolio basis for loans that do not meet the definition of impaired, in accordance with the Receivables topic of the FASB ASC. The portfolio is grouped into similar risk characteristics, primarily loan type and loan-to-value ratio. The Company applies an estimated loss rate to each loan group. The loss rates applied are based upon its loss experience adjusted, as appropriate, for environmental factors discussed below. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be significantly more than the allowance for loan losses the Company has established, which could have a material negative effect on its financial results. Residential mortgage loans represent the largest segment of the Company’s loan portfolio. Residential mortgage loans are secured by a first mortgage on residential real estate in Hawaii and consist primarily of fixed-rate mortgage loans which have been underwritten to Freddie Mac and Fannie Mae guidelines and have similar risk characteristics. The loan loss allowance is determined by first calculating the historical loss rate for this segment of the portfolio. The loss rate may be adjusted for qualitative and environmental factors. The allowance for loan loss is calculated by multiplying the adjusted loss rate by the total loans in this segment of the portfolio. The adjustments to historical loss experience are based on an evaluation of several qualitative and environmental factors, including: · changes in lending policies and procedures, including changes in underwriting standards and collections, charge-off and recovery practices; · changes in international, national, and local economic trends; · changes in the types of loans in the loan portfolio; · changes in the experience and ability of personnel in the mortgage loan origination and loan servicing departments; · changes in the number and amount of delinquent loans and classified assets; · changes in the type and volume of loans being originated; · changes in the value of underlying collateral for collateral dependent loans; · changes in any concentration of credit; and · external factors such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio. The Company also uses historical loss rates adjusted for qualitative and environmental factors to establish loan loss allowances for the following portfolio segments: · home equity loans and lines of credit; and · consumer and other loans. The Company has a limited loss experience for the construction, commercial and other mortgage segment of the loan portfolio. The loan loss allowance on this portfolio segment is determined using the loan loss rate of other financial institutions in the State of Hawaii. The allowance for loan loss is calculated by multiplying the loan loss rate of other financial institutions in the state by the total loans in this segment of the Company’s loan portfolio. The allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. In addition, the unallocated allowance is established to provide for probable losses that have been incurred as of the reporting date but are not reflected in the allocated allowance. While the Company uses the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, as an integral part of their examination process, the bank regulators will periodically review the allowance for loan losses. The bank regulators may require the Company to increase the allowance based on their analysis of information available at the time of their examination.
Transfer of Financial Assets	(j) Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control is surrendered. Control is surrendered when the assets have been isolated from the Company, the transferee obtains the right to pledge or exchange the assets without constraint, and the Company does not maintain effective control over the transferred assets. Mortgage loans sold for cash are accounted for as sales as the above criteria have been met. Mortgage loans may also be packaged into securities that are issued and guaranteed by U.S. government-sponsored enterprises or a U.S. government agency. The Company receives 100% of the mortgage-backed securities issued. The mortgage-backed securities received in securitizations are valued at fair value and classified as held-to-maturity. A gain or loss in the securitization transactions is recognized for the difference between the fair value of the mortgage-backed securities received and the amortized cost of the loans securitized. Mortgage loan transfers accounted for as sales and securitizations are without recourse, except for normal representations and warranties provided in sales transactions, and the Company may retain the related rights to service the loans. The retained servicing rights create mortgage servicing assets that are accounted for in accordance with the Transfers and Servicing topic of the FASB ASC. Mortgage servicing assets are initially valued at fair value and subsequently at the lower of cost or fair value and are amortized in proportion to and over the period of estimated net servicing income. The Company uses a discounted cash flow model to determine the fair value of retained mortgage servicing rights.
Premises and Equipment	(k) Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is principally computed on the straight-line method over the estimated useful lives of the respective assets. The estimated useful life of buildings and improvements is 30 years, furniture, fixtures, and equipment is 3 to 10 years, and automobiles are 3 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset.
Income Taxes	(l) Income Taxes The Company files consolidated federal income tax and consolidated state franchise tax returns. Deferred tax assets and liabilities are recognized using the asset and liability method of accounting for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We establish income tax contingency reserves for potential tax liabilities related to uncertain tax positions. A liability for income tax uncertainties would be recorded for unrecognized tax benefits related to uncertain tax positions where it is more likely than not that the position will be sustained upon examination by a taxing authority. As of December 31, 2019 and 2018, the Company had not recognized a liability for income tax uncertainties in the accompanying Consolidated Balance Sheets because management concluded that the Company does not have uncertain tax positions. The Company recognizes interest and penalties related to tax liabilities in other interest expense and other general and administrative expenses, respectively, in the Consolidated Statements of Income. Tax years 2016 to 2018 currently remain subject to examination by the Internal Revenue Service and by the Department of Taxation of the State of Hawaii.
Impairment of Long-Lived Assets	(m) Impairment of Long-Lived Assets Long-lived assets, such as premises and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the Consolidated Balance Sheets and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated.
Pension Plan	(n) Pension Plan Pension benefit costs (returns) are charged (credited) to salaries and employee benefits expense, and the corresponding prepaid (accrued) pension cost is recorded in prepaid expenses and other assets or accounts payable and accrued expenses in the consolidated balance sheets. The Company’s policy is to fund pension costs in amounts that will not be less than the minimum funding requirements of the Employee Retirement Income Security Act of 1974 and will not exceed the maximum tax-deductible amounts. The Company generally funds at least the net periodic pension cost, subject to limits and targeted funded status as determined with the consulting actuary.
Share-Based Compensation	(o) Share-Based Compensation The Company grants share-based compensation awards, including restricted stock and restricted stock units, which are either performance-based or time-based. The fair value of the restricted stock and restricted stock unit awards were based on the closing price of the Company’s stock on the date of grant. The cost of these awards are amortized in the Consolidated Statements of Income on a straight-line basis over the vesting period. The amount of performance-based restricted stock units that vest on a performance condition is remeasured quarterly based on how the Company’s return on average equity compares to the SNL Bank Index. The fair value of performance-based restricted stock units that are based on how the Company’s total stock return compares to the SNL Bank Index was measured using a Monte-Carlo valuation.
Supplemental Employee Retirement Plan (SERP)	(p) Supplemental Employee Retirement Plan (SERP) The SERP is a noncontributory supplemental retirement plan covering certain current and former employees of the Company. Benefits in the SERP plan are paid after retirement, in addition to the benefits provided by the Pension Plan. The Company accrues SERP costs over the estimated period until retirement by charging salaries and employee benefits expense in the Consolidated Statements of Income, with a corresponding credit to accounts payable and accrued expenses in the Consolidated Balance Sheets.
Employee Stock Ownership Plan (ESOP)	(q) Employee Stock Ownership Plan (ESOP) The cost of shares issued to the ESOP, but not yet allocated to participants, is shown as a reduction of stockholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce debt and accrued interest.
Earnings Per Share	(r) Earnings Per Share We have two forms of our outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Unvested restrictred 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. Basic earnings per share is computed by dividing net income allocated to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income allocated to common shareholders by the sum of the weighted-average number of shares outstanding plus the dilutive effect of stock options and restricted stock. ESOP shares not committed to be released are not considered outstanding.
Common Stock Repurchase Program	(s) Common Stock Repurchase Program The Company adopted common stock repurchase programs in which shares repurchased reduce the amount of shares issued and outstanding. The repurchased shares may be reissued in connection with share-based compensation plans and for general corporate purposes. During 2019 and 2018, the Company repurchased 59,700 and 303,500 shares of common stock, respectively, at an average cost of $26.74 and $30.36, respectively, as part of the repurchase programs authorized by the Board of Directors.
Bank-Owned Life Insurance	(t) Bank-Owned Life Insurance The Company’s investment in bank-owned life insurance is based on cash surrender value. The Company invests in bank-owned life insurance to provide a funding source for benefit plan obligations. Bank-owned life insurance also generally provides noninterest income that is nontaxable. Federal regulations generally limit the investment in bank-owned life insurance to 25% of the Bank’s Tier 1 capital plus the allowance for loan losses. At December 31, 2019, this limit was $57.6 million and the Company had invested $45.1 million in bank-owned life insurance at that date.
Leases	(u) 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.
Use of Estimates	(v) Use of Estimates The preparation of the Consolidated Financial Statements requires management to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amount of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the allowance for loan losses; valuation of certain investment securities and determination as to whether declines in fair value below amortized cost are other than temporary; valuation allowances for deferred income tax assets; mortgage servicing assets; and assets and obligations related to employee benefit plans. Accordingly, actual results could differ from those estimates.
Recently Issued Accounting Pronouncements	(w) 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. In November 2019, the FASB issued an update 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 (Tabl

Cash and Cash Equivalents (Tables)	12 Months Ended
	Dec. 31, 2019
Cash and Cash Equivalents
Schedule of balances of cash and cash equivalents	December 31, (Dollars in thousands) 2019 2018 Cash and due from banks $ 9,571 $ 9,771 Interest-earning deposits in other banks 35,235 37,292 Cash and cash equivalents $ $

Investment Securities (Tables)

Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2019
Investment Securities.
Schedule of amortized cost and fair values of investment securities	Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value December 31, 2019: Available-for-sale: U.S. government-sponsored mortgage-backed securities $ 7,905 $ 723 $ — $ 8,628 Total $ 7,905 $ 723 $ — $ 8,628 Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 363,883 $ 8,436 $ (1,014) $ 371,305 Total $ 363,883 $ 8,436 $ (1,014) $ 371,305 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 7,905 8,628 Total $ 7,905 $ 8,628 Held-to-maturity: Due within 5 years $ — $ — Due after 5 years through 10 years 60 61 Due after 10 years 363,823 371,244 Total $ 363,883 $ 371,305
Schedule of realized gains and losses and proceeds from sales of securities held to maturity	(Dollars in thousands) 2019 2018 Proceeds from sales $ 8,644 $ 4,462 Gross gains 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) December 31, 2019: Held-to-maturity: U.S. government-sponsored mortgage-backed securities $ 55,882 $ (302) $ 34,492 $ (712) 30 $ 90,374 $ (1,014) 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)	12 Months Ended
	Dec. 31, 2019
Loans Receivable and Allowance for Loan Losses
Schedule of components of loans receivable	December 31, (Dollars in thousands) 2019 2018 Real estate loans: First mortgages: One- to four-family residential $ 1,536,781 $ 1,531,149 Multi-family residential 9,965 12,151 Construction, commercial and other 23,382 20,780 Home equity loans and lines of credit 10,084 11,090 Total real estate loans 1,580,212 1,575,170 Other loans: Loans on deposit accounts 235 357 Consumer and other loans 9,484 4,939 Total other loans 9,719 5,296 Less: Net unearned fees and discounts (2,435) (3,110) Allowance for loan losses (2,712) (2,642) Total unearned fees, discounts and allowance for loan losses (5,147) (5,752) Loans receivable, net $ 1,584,784 $ 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 Year ended December 31, 2019: Balance, beginning of year $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642 Provision (reversal of provision) for loan losses (84) 68 — 26 51 61 1,713 511 1 73 405 2,703 Charge-offs (8) — — (40) — (48) Recoveries 36 — — 21 — 57 Net recoveries (charge-offs) 28 — — (19) — 9 Balance, end of year $ 1,741 $ 511 $ 1 $ 54 $ 405 $ 2,712 Year ended December 31, 2018: Balance, beginning of year $ 1,721 $ 539 $ 1 $ 55 $ 232 $ 2,548 Provision (reversal of provision) for loan losses 78 (96) — 15 122 119 1,799 443 1 70 354 2,667 Charge-offs (12) — — (29) — (41) Recoveries 10 — — 6 — 16 Net charge-offs (2) — — (23) — (25) Balance, end of year $ 1,797 $ 443 $ 1 $ 47 $ 354 $ 2,642
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 December 31, 2019: Allowance for loan losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,741 511 1 54 405 2,712 Total ending allowance balance $ 1,741 $ 511 $ 1 $ 54 $ 405 $ 2,712 Loans: Ending loan balance: Individually evaluated for impairment $ 1,224 $ — $ 89 $ — $ — $ 1,313 Collectively evaluated for impairment 1,543,125 23,326 9,997 9,735 — 1,586,183 Total ending loan balance $ 1,544,349 $ 23,326 $ 10,086 $ 9,735 $ — $ 1,587,496 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 December 31, 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,224 $ 1,615 Home equity loans and lines of credit 89 178 Total $ 1,313 $ 1,793 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	Average Recorded Interest Income (Dollars in thousands) Investment Recognized 2019: With no related allowance recorded: One- to four-family residential mortgages $ 1,272 $ 34 Home equity loans and lines of credit 98 — Total $ 1,370 $ 34 2018: With no related allowance recorded: One- to four-family residential mortgages $ 3,039 $ 53 Home equity loans and lines of credit 156 — Total $ 3,195 $ 53
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 December 31, 2019: One- to four-family residential mortgages $ — $ 959 $ — $ 959 $ 1,533,446 $ 1,534,405 $ 647 $ — Multi-family residential mortgages — — — — 9,944 9,944 — — Construction, commercial and other mortgages — — — — 23,326 23,326 — — Home equity loans and lines of credit — 26 — 26 10,060 10,086 89 — Loans on deposit accounts — — — — 235 235 — — Consumer and other 33 1 1 35 9,465 9,500 — 1 Total $ 33 $ 986 $ 1 $ 1,020 $ 1,586,476 $ 1,587,496 $ 736 $ 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 December 31, 2019: One- to four-family residential mortgages 3 $ 577 2 $ 525 $ 1,102 Home equity loans and lines of credit — — 1 64 64 Total 3 $ 577 3 $ 589 $ 1,166 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

Accrued Interest Receivable (Ta

Accrued Interest Receivable (Tables)	12 Months Ended
	Dec. 31, 2019
Accrued Interest Receivable
Schedule of components of accrued interest receivable	December 31, (Dollars in thousands) 2019 2018 Loans receivable $ 4,425 $ 4,302 Investment securities 952 960 Interest-bearing deposits 32 12 Total $ 5,409 $ 5,274

Mortgage Servicing Assets (Tabl

Mortgage Servicing Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Mortgage Servicing Assets.
Schedule of changes in mortgage servicing assets	(Dollars in thousands) 2019 2018 Balance at beginning of year $ 226 $ 263 Additions 344 — Impairments (16) — Amortization (51) (37) Balance at end of year $ 503 $ 226
Schedule of gross carrying values, accumulated amortization, and net carrying values of mortgage servicing assets	December 31, (Dollars in thousands) 2019 2018 Gross carrying value $ 1,638 $ 1,310 Accumulated amortization (1,135) (1,084) Net carrying value $ 503 $ 226
Schedule of estimated future amortization expense for mortgage servicing assets	(Dollars in thousands) 2020 $ 92 2021 73 2022 57 2023 46 2024 38 Thereafter 197 Total $ 503
Schedule of fair values and key assumptions used in determining fair values of mortgage servicing assets	2019 2018 Fair value, beginning of year (in thousands) $ 291 $ 311 Fair value, end of year (in thousands) 552 291 Weighted average discount rate % % Weighted average prepayment speed assumption (CPR) Annual cost to service (per loan) $ 75 $ 70

Interest Rate Lock and Forwar_2

Interest Rate Lock and Forward Loan Sale Commitments (Tables)	12 Months Ended
	Dec. 31, 2019
Interest Rate Lock and Forward Loan Sale Commitments
Schedule of location of assets and liabilities related to derivatives	Asset Derivatives Liability Derivatives Location on Fair Value at December 31, Fair Value at December 31, (Dollars in thousands) Balance Sheet 2019 2018 2019 2018 Interest rate contracts Prepaid expenses and other assets $ 5 $ 5 $ — $ — Interest rate contracts Accounts payable and accrued expenses — — 5 5 Total derivatives $ 5 $ 5 $ 5 $ 5

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2019
Premises and Equipment
Schedule of premises and equipment	December 31, (Dollars in thousands) 2019 2018 Land $ 585 $ 585 Buildings and improvements 1,365 1,365 Leasehold improvements 14,027 13,938 Furniture, fixtures and equipment 6,035 5,502 Automobiles 115 115 22,127 21,505 Less accumulated depreciation and amortization (17,900) (16,729) 4,227 4,776 Construction in progress 143 47 Total $ 4,370 $ 4,823

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2019
Deposits
Summary of deposit accounts by type with their respective weighted-average interest rates	December 31, 2019 2018 (Dollars in thousands) Amount Rate Amount Rate Non-interest bearing $ 54,927 - % $ 51,744 - % Savings accounts 908,175 0.49 991,310 0.50 Certificates of deposit 463,943 1.87 391,141 1.89 Money market 4,917 0.45 5,291 0.44 Checking and Super NOW 199,971 0.02 189,678 0.02 Total $ 1,631,933 0.81 % $ 1,629,164 0.77 %
Schedule of maturity of certificate of deposit accounts	Maturing in: 2020 $ 310,465 2021 88,002 2022 38,394 2023 14,666 2024 12,416 Total $ 463,943
Schedule of interest expense by type of deposit	(Dollars in thousands) 2019 2018 Savings $ 4,593 $ 4,842 Certificates of deposit and money market 8,829 6,134 Checking and Super NOW 41 39 Total $ 13,463 $ 11,015

Advances from the Federal Hom_2

Advances from the Federal Home Loan Bank (Tables)	12 Months Ended
	Dec. 31, 2019
Advances from the Federal Home Loan Bank
Schedule of advances outstanding	December 31, 2019 2018 Weighted Weighted Average Average (Dollars in thousands) Amount Rate Amount Rate Due within one year $ 20,000 2.16 % $ 107,200 2.39 % Due over 1 year to 2 years 57,000 2.50 20,000 2.16 Due over 2 years to 3 years 30,000 2.37 15,000 2.32 Due over 3 years to 4 years 19,000 2.16 — — Due over 4 years to 5 years 30,000 1.87 — — Total $ 156,000 2.27 % $ 142,200 2.35 %

Securities Sold Under Agreeme_2

Securities Sold Under Agreements to Repurchase (Tables)	12 Months Ended
	Dec. 31, 2019
Securities Sold Under Agreements to Repurchase
Summary of securities sold under agreements to repurchase	2019 2018 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: 1 year or less $ 5,000 1.65 % $ 25,000 1.66 % Over 1 year to 2 years — — 5,000 1.65 Over 4 year to 5 years 5,000 1.88 — — Total $ 10,000 1.77 % $ 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 $ 11,724 $ 12,201 $ 10,000 $ 2,201 30

Offsetting of Financial Liabi_2

Offsetting of Financial Liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Offsetting of Financial Liabilities
Schedule of securities sold under agreements to repurchase subject to conditional right of offset	Net Amount of Gross Amount Not Offset in the Gross Amount Gross Amount Liabilities Balance Sheet of Recognized Offset in the Presented in the Financial Cash Collateral (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Pledged Net Amount December 31, 2019: Securities sold under agreements to repurchase $ 10,000 $ — $ 10,000 $ 10,000 $ — $ — December 31, 2018: Securities sold under agreements to repurchase $ 30,000 $ — $ 30,000 $ 30,000 $ — $ —

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Taxes
Schedule of allocation of federal and state income taxes between current and deferred provisions	(Dollars in thousands) 2019 2018 Current Federal $ 3,366 $ 3,752 State 1,479 1,530 4,845 5,282 Deferred Federal 1,147 600 State 319 229 1,466 829 Total $ 6,311 $ 6,111
Schedule of reconciliation of tax provision based on statutory corporate rate on pretax income and provision for taxes	(Dollars in thousands) 2019 2018 Income tax expense at statutory rate $ 5,944 $ 5,318 Income tax effect of: Other tax-exempt income (263) (182) Share-based compensation (69) 1 Meal and entertainment expenses 82 88 State income taxes, net of federal income tax benefits 1,301 1,246 Tax benefit from the exercise of stock options (297) (134) Tax benefit from tax depreciation study (1) (402) — Other 15 (226) Total income tax expense $ 6,311 $ 6,111 Effective income tax rate 22.29 % 24.13 % (1) The Company conducted a study that reduced the asset lives used to calculate depreciation. The Company filed an amended tax return and was able to deduct the increase in depreciation expense at the 2017 federal corporate tax rate of 35% rather than the current 21% federal corporate tax rate.
Schedule of components of income taxes payable (receivable)	December 31, (Dollars in thousands) 2019 2018 Current taxes payable: Federal $ 767 $ 621 State 1,538 1,786 $ 2,305 $ 2,407 Deferred taxes receivable: Federal $ (1,651) $ (2,836) State (968) (1,300) $ (2,619) $ (4,136)
Schedule of tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities	December 31, (Dollars in thousands) 2019 2018 Deferred tax assets: Premises and equipment $ 547 $ 1,037 Hawaii franchise tax 479 468 Unfunded pension liability 925 691 Allowance for loan losses 722 703 Impaired asset write-down — 765 Employee benefit plans 2,692 2,601 Equity incentive plan 350 399 Unrealized losses on securities available-for-sale — 32 Deferred compensation 413 480 Net lease liability 161 — Other 8 159 6,297 7,335 Deferred tax liabilities: Deferred loan costs 3,078 2,844 FHLB stock dividends 126 126 Prepaid expense 155 169 Unrealized gain on securities available-for-sale 185 — Premiums on loans sold 134 60 3,678 3,199 Net deferred tax assets $ 2,619 $ 4,136

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	12 Months Ended
	Dec. 31, 2019
Employee Benefit Plans
Schedule of status of Pension Plan and SERP	Pension Plan SERP December 31, (Dollars in thousands) 2019 2018 2019 2018 Accumulated benefit obligation at end of year $ 21,367 $ 18,713 $ 9,702 $ 9,473 Change in projected benefit obligation: Benefit obligation at beginning of year $ 18,713 $ 19,314 $ 9,473 $ 9,242 Service cost 164 141 84 97 Interest cost 811 728 162 151 Actuarial loss (gain) 2,558 (611) — — Benefits paid (879) (859) (17) (17) Benefit obligation at end of year 21,367 18,713 9,702 9,473 Change in plan assets: Fair value of plan assets at beginning of year 17,500 15,927 — — Actual return on plan assets 2,814 (968) — — Employer contributions — 3,400 17 17 Benefits paid (879) (859) (17) (17) Fair value of plan assets at end of year 19,435 17,500 — — Funded status at end of year $ (1,932) $ (1,213) $ (9,702) $ (9,473) Amounts recognized in the Consolidated Balance Sheets: Accounts payable and accrued expenses - liability $ (1,932) $ (1,213) $ (9,702) $ (9,473) Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 11,008 $ 10,380 $ — $ — Prior service cost 139 144 — — Accumulated other comprehensive loss, before tax $ 11,147 $ 10,524 $ — $ —
Schedule of changes recognized in accumulated other comprehensive loss for Pension Plan	Pension Plan Year Ended December 31, (Dollars in thousands) 2019 2018 Accumulated other comprehensive loss at beginning of year, before tax $ 10,524 $ 9,245 Actuarial net loss arising during the period 961 1,562 Amortizations (recognized in net periodic benefit cost): Actuarial loss (333) (278) Prior service cost (5) (5) Total recognized in other comprehensive loss 623 1,279 Accumulated other comprehensive loss at end of year, before tax $ 11,147 $ 10,524
Schedule of weighted average assumptions used to determine benefit obligations	Pension Plan SERP Year Ended December 31, 2019 2018 2019 2018 Assumptions used to determine the year-end benefit obligations: Discount rate 3.30 % 4.30 % 5.02 % 5.03 % Rate of compensation increase N/A N/A 5.00 % 5.00 %
Schedule of Pension Plan's assets measured at fair value	Fair Value of Measurements at Report Date Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Total Fair Assets Inputs Inputs (Dollars in thousands) Value (Level 1) (Level 2) (Level 3) December 31, 2019: Cash $ 3,021 $ 3,021 $ — $ — Equities 11,576 11,576 — — Mutual funds (1) 4,838 4,838 — — Total $ 19,435 $ 19,435 $ — $ — December 31, 2018: Cash $ 4,128 $ 4,128 $ — $ — Equities 9,008 9,008 — — Mutual funds (1) 4,364 4,364 — — Total $ 17,500 $ 17,500 $ — $ — (1) This category includes mutual funds that invest in equities and bonds. The mutual fund managers have the ability to change the amounts invested in equities and bonds depending on their investment outlook.
Schedule of estimated future benefit payments reflecting expected future service	Pension (Dollars in thousands) Plan SERP 2020 $ 1,195 $ 17 2021 1,263 8,639 2022 1,303 160 2023 1,309 149 2024 1,317 149 2025 - 2029 6,447 743 Total $ 12,834 $ 9,857
Schedule of weighted average assumptions used to determine net periodic benefit cost	Pension Plan SERP Year Ended December 31, (Dollars in thousands) 2019 2018 2019 2018 Assumptions used to determine the net periodic benefit cost: Discount rate 4.30 % 3.70 % 5.02 % 5.02 % Expected return on plan assets 7.25 7.25 - - Rate of compensation increase N/A N/A 5.00 5.00
Schedule of components of net periodic benefit cost	Pension Plan SERP Year Ended December 31, (Dollars in thousands) 2019 2018 2019 2018 Net periodic benefit cost (income) for the year: Service cost $ 164 $ 141 $ 84 $ 97 Interest cost 811 728 162 151 Expected return on plan assets (1,217) (1,204) — — Amortization of prior service cost 5 5 — — Recognized actuarial loss 333 278 — — Recognized curtailment loss — — — — Net periodic benefit cost (income) for the year: $ 96 $ (52) $ 246 $ 248

Employee Stock Ownership Plan (

Employee Stock Ownership Plan (Tables)	12 Months Ended
	Dec. 31, 2019
Employee Stock Ownership Plan
Schedule of shares held by the ESOP trust	December 31, 2019 2018 Allocated shares 466,807 446,041 Unearned shares 440,397 489,329 Total ESOP shares 907,204 935,370 Fair value of unearned shares, in thousands $ 13,626 $ 12,713

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2019
Schedule of compensation expense and related tax benefit for all share-based awards	(In thousands) 2019 2018 Compensation expense $ 571 $ 341 Income tax benefit 156 93
Schedule of stock option activity	Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2017 411,543 $ 17.48 2.73 $ 5,509 Granted — — — — Exercised 73,889 17.36 — 973 Forfeited — — — — Expired — — — — Options outstanding at December 31, 2018 337,654 $ 17.51 1.74 $ 2,859 Granted — — — — Exercised 221,245 17.50 — 2,483 Forfeited — — — — Expired — — — — Options outstanding at December 31, 2019 116,409 $ 17.53 0.72 $ 1,562 Options vested and exercisable at December 31, 2019 116,409 $ 17.53 0.72 $ 1,562
Summary of certain stock option activity	(In thousands) 2019 2018 Intrinsic value of stock options exercised $ 2,483 $ 973 Proceeds received from stock options exercised 3,873 1,283 Tax benefits realized from stock options exercised 534 229 Total fair value of stock options that vested — 35
Restricted Stock
Schedule of restricted stock award activity	Weighted Average Grant Restricted Date Fair Stock Value Unvested at December 31, 2017 10,806 $ 29.16 Granted 10,019 30.73 Vested 4,401 28.63 Forfeited — — Unvested at December 31, 2018 16,424 $ 30.26 Unvested at December 31, 2018 16,424 $ 30.26 Granted 10,366 27.30 Vested 6,541 30.14 Forfeited — — Unvested at December 31, 2019 20,249 $
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 Unvested at December 31, 2017 11,520 $ 29.53 Granted 12,018 30.73 Vested — — Forfeited — — Unvested at December 31, 2018 23,538 $ 30.14 Unvested at December 31, 2018 23,538 $ 30.14 Granted 12,438 27.30 Vested — — Forfeited — — Unvested at December 31, 2019 35,976 $ 29.16
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 Unvested at December 31, 2017 2,879 $ 24.44 Granted 3,005 28.32 Vested — — Forfeited — — Unvested at December 31, 2018 5,884 $ 26.42 Unvested at December 31, 2018 5,884 $ 26.42 Granted 3,110 24.45 Vested — — Forfeited — — Unvested at December 31, 2019 8,994 $ 25.74

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings Per Share
Schedule of information used to compute basic and diluted earnings per share	For the Year Ended December 31, (Dollars in thousands, except per share data) 2019 2018 Net income $ 21,995 $ 19,212 Income allocated to participating securities (149) (90) Net income available to common shareholders $ 21,846 $ 19,122 Weighted-average number of shares used in: Basic earnings per share 9,196,674 9,219,123 Dilutive common stock equivalents: Stock options and restricted stock units 128,940 181,272 Diluted earnings per share 9,325,614 9,400,395 Net income per common share, basic $ 2.38 $ 2.07 Net income per common share, diluted $ 2.34 $ 2.03

Other Comprehensive Loss (Table

Other Comprehensive Loss (Tables)	12 Months Ended
	Dec. 31, 2019
Other Comprehensive 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 December 31, 2019: Balances at beginning of year $ 7,721 $ 88 $ 7,809 Other comprehensive loss (income), net of taxes 457 (598) (141) Net current period other comprehensive loss (income) 457 (598) (141) Balances at end of year $ 8,178 $ (510) $ 7,668 December 31, 2018: Balances at beginning of year $ 5,657 $ 37 $ 5,694 Other comprehensive loss, net of taxes 938 42 980 Amounts reclassified from retained earnings 1,126 9 1,135 Net current period other comprehensive loss 2,064 51 2,115 Balances at end of year $ 7,721 $ 88 $ 7,809
Schedule of tax effect on each component of accumulated other comprehensive loss	Year Ended December 31, 2019 2018 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unfunded pension liability $ 623 $ (166) $ 457 $ 1,279 $ (341) $ 938 Unrealized (gain)/loss on securities (815) 217 (598) 57 (15) 42 Total $ (192) $ 51 $ (141) $ 1,336 $ (356) $ 980

Regulatory Capital and Superv_2

Regulatory Capital and Supervision (Tables)	12 Months Ended
	Dec. 31, 2019
Regulatory Capital and Supervision
Schedule of regulatory capital ratios	(Dollars in thousands) Required Ratio Actual Amount Actual Ratio December 31, 2019: Tier 1 Leverage Capital Territorial Savings Bank 5.00 % $ 227,507 10.92 % Territorial Bancorp Inc. $ 251,558 12.06 % Common Equity Tier 1 Risk-Based Capital (1) Territorial Savings Bank 9.00 % $ 227,507 23.31 % Territorial Bancorp Inc. $ 251,558 25.77 % Tier 1 Risk-Based Capital (1) Territorial Savings Bank 10.50 % $ 227,507 23.31 % Territorial Bancorp Inc. $ 251,558 25.77 % Total Risk-Based Capital (1) Territorial Savings Bank 12.50 % $ 230,304 23.59 % Territorial Bancorp Inc. $ 254,355 26.06 % December 31, 2018: Tier 1 Leverage Capital Territorial Savings Bank 5.00 % $ 225,694 11.09 % Territorial Bancorp Inc. $ 242,888 11.92 % Common Equity Tier 1 Risk-Based Capital (1) Territorial Savings Bank 9.00 % $ 225,694 23.50 % Territorial Bancorp Inc. $ 242,888 25.29 % Tier 1 Risk-Based Capital (1) Territorial Savings Bank 10.50 % $ 225,694 23.50 % Territorial Bancorp Inc. $ 242,888 25.29 % Total Risk-Based Capital (1) Territorial Savings Bank 12.50 % $ 228,423 23.78 % Territorial Bancorp Inc. $ 245,617 25.57 % (1) The required Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital and Total Risk-Based Capital ratios are based on the fully-phased in capital ratios in the Basel III capital regulations plus the 2.50% capital conservation buffer that became effective on January 1, 2019.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
	Dec. 31, 2019
Revenue Recognition
Reconciliation of revenue from contracts with customers and other revenue reported in line items	Service Fees on Loan and Deposit (Dollars in thousands) Accounts Other Total Year ended December 31, 2019 Revenue from contracts with customers $ 1,378 $ 150 $ 1,528 Other revenue 559 460 1,019 Total $ 1,937 $ 610 $ 2,547 Year ended December 31, 2018 Revenue from contracts with customers $ 1,401 $ 138 $ 1,539 Other revenue 485 158 643 Total $ 1,886 $ 296 $ 2,182

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Leases
Schedule of lease costs	(Dollars in thousands) December 31, 2019 Lease Costs: Operating lease costs $ 3,130 Short-term lease costs 57 Variable lease costs 129 Total lease costs $ 3,316 Cash paid for amounts included in measurement of lease liabilities $ 2,991 ROU assets obtained in exchange for new operating lease liabilities $ 14,341
Schedule of future minimum rental commitments under noncancellable operating leases	(Dollars in thousands) 2020 $ 3,171 2021 2,632 2022 2,374 2023 2,088 2024 1,801 Thereafter 3,112 Total 15,178 Less present value discount 2,995 Present value of leases $ 12,183
Schedule of other lease related information	December 31, 2019 Weighted-average remaining lease term (years) Weighted-average discount rate %
Schedule of future minimum rental income	(Dollars in thousands) 2020 $ 110 2021 110 2022 — 2023 — 2024 — Thereafter — Total $ 220

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2019 Assets Cash and cash equivalents $ 44,806 $ 44,806 $ 44,806 $ — $ — Investment securities available for sale 8,628 8,628 — 8,628 — Investment securities held to maturity 363,883 371,305 — 371,305 — Loans held for sale 470 480 — 480 — Loans receivable, net 1,584,784 1,627,903 — — 1,627,903 FHLB stock 8,723 8,723 — 8,723 — FRB stock 3,128 3,128 — 3,128 — Accrued interest receivable 5,409 5,409 32 952 4,425 Interest rate contracts 5 5 — 5 — Liabilities Deposits 1,631,933 1,632,741 — 1,167,990 464,751 Advances from the Federal Home Loan Bank 156,000 156,906 — 156,906 — Securities sold under agreements to repurchase 10,000 9,968 — 9,968 — Accrued interest payable 397 397 — 47 350 Interest rate contracts 5 5 — 5 — 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 December 31, 2019 Interest rate contracts — assets $ — $ 5 $ — $ 5 Interest rate contracts — liabilities — (5) — (5) Investment securities available for sale — 8,628 — 8,628 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 December 31, 2019: Mortgage servicing assets $ 452 Discounted cash flow Discount rate 10.25% Prepayment speed (CPR) 9.11 - 13.06 Annual cost to service (per loan, in dollars) $ 75
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 December 31, 2019 Mortgage servicing assets 9/30/2019 $ — $ — $ 452 $ 452 $ (16)

Parent Company Only (Tables)

Parent Company Only (Tables)	12 Months Ended
	Dec. 31, 2019
Parent Company Only
Condensed Balance Sheet	December 31, (Dollars in thousands) 2019 2018 Assets Cash $ 22,602 $ 16,389 Investment in Territorial Savings Bank 219,838 217,884 Receivable from Territorial Savings Bank 1,377 741 Prepaid expenses and other assets 233 154 Total assets $ 244,050 $ 235,168 Liabilities and Equity Other liabilities $ 160 $ 89 Equity 243,890 235,079 Total liabilities and equity $ 244,050 $ 235,168
Condensed Statement of Income	For the Year Ended December 31, (Dollars in thousands) 2019 2018 Interest and dividend income: Dividends from Territorial Savings Bank $ 21,250 $ 14,500 Interest-earning deposit with Territorial Savings Bank 35 43 Total interest and dividend income 21,285 14,543 Noninterest expense: Salaries 43 38 Other general and administrative expenses 676 791 Total noninterest expense 719 829 Income before income taxes and equity in undistributed earnings in subsidiaries 20,566 13,714 Income taxes (177) (107) Income before equity in undistributed earnings in subsidiaries 20,743 13,821 Equity in undistributed earnings of Territorial Savings Bank, net of dividends 1,252 5,391 Net income $ 21,995 $ 19,212
Condensed Statement of Cash Flows	For the Year Ended December 31, (Dollars in thousands) 2019 2018 Cash flows from operating activities: Net income $ 21,995 $ 19,212 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of Territorial Savings Bank, net of dividends (1,252) (5,391) ESOP expense 1,398 1,456 Net (increase) decrease in prepaid expenses and other assets (715) 785 Net increase (decrease) in other liabilities (97) (6) Net cash provided by operating activities 21,329 16,056 Cash flows from investing activities: Investment in Territorial Savings Bank — — Net cash used in investing activities — — Cash flows from financing activities: Proceeds from issuance of common stock 170 — Repurchases of common stock (1,597) (9,270) Cash dividends paid (13,689) (10,490) Net cash used in financing activities (15,116) (19,760) Net increase (decrease) in cash 6,213 (3,704) Cash at beginning of the period 16,389 20,093 Cash at end of the period $ 22,602 $ 16,389

Unaudited Quarterly Financial_2

Unaudited Quarterly Financial Information (Tables)	12 Months Ended
	Dec. 31, 2019
Unaudited Quarterly Financial Information
Schedule of unaudited quarterly financial information	First Second Third Fourth Quarter Quarter Quarter Quarter Full Year (Dollars in thousands, except per share data) 2019: Interest income $ 18,705 $ 19,114 $ 18,948 $ 18,801 $ 75,568 Interest expense 3,869 4,452 4,397 4,309 17,027 Net interest income 14,836 14,662 14,551 14,492 58,541 Provision (reversal of provision) for loan losses 5 (51) 111 (4) 61 Net interest income after provision for loan losses 14,831 14,713 14,440 14,496 58,480 Noninterest income 3,440 1,273 2,102 1,017 7,832 Noninterest expense 9,774 9,511 9,401 9,320 38,006 Income before income taxes 8,497 6,475 7,141 6,193 28,306 Income taxes 1,973 1,415 1,775 1,148 6,311 Net income 6,524 5,060 5,366 5,045 21,995 Basic earnings per share 0.71 0.55 0.58 0.54 2.38 Diluted earnings per share 0.70 0.54 0.57 0.53 2.34 Cash dividends declared per common share 0.22 0.32 0.22 0.73 1.49 First Second Third Fourth Quarter Quarter Quarter Quarter Full Year (Dollars in thousands, except per share data) 2018: Interest income $ 18,234 $ 18,182 $ 18,278 $ 18,607 $ 73,301 Interest expense 2,995 3,275 3,517 3,742 13,529 Net interest income 15,239 14,907 14,761 14,865 59,772 Provision (reversal of provision) for loan losses 9 60 (50) 100 119 Net interest income after provision for loan losses 15,230 14,847 14,811 14,765 59,653 Noninterest income 742 837 746 839 3,164 Noninterest expense 9,393 9,374 9,503 9,224 37,494 Income before income taxes 6,579 6,310 6,054 6,380 25,323 Income taxes 1,759 1,347 1,268 1,737 6,111 Net income 4,820 4,963 4,786 4,643 19,212 Basic earnings per share 0.52 0.54 0.52 0.50 2.07 Diluted earnings per share 0.51 0.53 0.51 0.50 2.03 Cash dividends declared per common share 0.20 0.30 0.22 0.42 1.14

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Description of Business, Investment Securities and Transfer of Financial Assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)
Description of Business
Number of branches through which loan and deposit products and services are provided to individual customers | item	29
Investment Securities
Investment securities available for sale, at fair value | $	$ 8,628	$ 2,560
Transfer of financial assets
Percentage of receipt on transfer of mortgage-backed securities issued	100.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Premises and Equipment Useful Lives (Details)	12 Months Ended
	Dec. 31, 2019
Buildings and improvements
Premises and equipment
Estimated useful life	30 years
Furniture, fixtures and equipment | Minimum
Premises and equipment
Estimated useful life	3 years
Furniture, fixtures and equipment | Maximum
Premises and equipment
Estimated useful life	10 years
Automobiles
Premises and equipment
Estimated useful life	3 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Common Stock Repurchase Program and Forms of Outstanding Common Stock (Details)	12 Months Ended
	Dec. 31, 2019security$ / sharesshares	Dec. 31, 2018$ / sharesshares
Common stock
Number of different forms of outstanding common stock | security	2
Common Stock Repurchase Program
Common Stock Repurchase Program
Repurchase of shares of common stock (in shares) | shares	59,700	303,500
Average cost of shares repurchased (in dollars per share) | $ / shares	$ 26.74	$ 30.36

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Bank-Owned Life Insurance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Bank-Owned Life Insurance
Amount of investment in bank-owned life insurance	$ 45,113	$ 45,066
Territorial Savings Bank
Bank-Owned Life Insurance
Percentage applied on Tier 1 capital plus allowance for loan losses to calculate ceiling limit of investment	25.00%
Amount of ceiling limit of investment	$ 57,600

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncement (Details) - USD ($)	Jan. 01, 2019	Dec. 31, 2019
Summary of Significant Accounting Policies
Right-of-use asset, net	$ 12,700,000	$ 11,580,000
Lease liability	13,200,000	12,183,000
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	Dec. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents
Cash and due from banks	$ 9,571	$ 9,771
Interest-earning deposits in other banks	35,235	37,292
Cash and cash equivalents	$ 44,806	$ 47,063

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Fair Values of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Available-for-sale:
Amortized Cost	$ 7,905	$ 2,644
Gross Unrealized Gains	723
Gross Unrealized Losses		(84)
Estimated Fair Value	8,628	2,560
Mortgage-backed securities
Available-for-sale:
Amortized Cost	7,905	2,644
Gross Unrealized Gains	723
Gross Unrealized Losses		(84)
Estimated Fair Value	$ 8,628	$ 2,560

Investment Securities - Amort_2

Investment Securities - Amortized Cost and Fair Values of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Held-to-maturity:
Amortized Cost	$ 363,883	$ 371,517
Gross Unrealized Gains	8,436	2,684
Gross Unrealized Losses	(1,014)	(9,279)
Estimated Fair Value	371,305	364,922
Mortgage-backed securities
Held-to-maturity:
Amortized Cost	363,883	371,442
Gross Unrealized Gains	8,436	2,056
Gross Unrealized Losses	(1,014)	(9,279)
Estimated Fair Value	$ 371,305	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	Dec. 31, 2019	Dec. 31, 2018
Amortized Cost
Due within 5 years	$ 0
Due after 5 years through 10 years	0
Due after 10 years	7,905
Amortized Cost	7,905	$ 2,644
Estimated Fair Value
Due within 5 years	0
Due after 5 years through 10 years	0
Due after 10 years	8,628
Estimated Fair Value	$ 8,628	$ 2,560

Investment Securities - Matur_2

Investment Securities - Maturity Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Held-to-maturity, Amortized Cost
Due within 5 years	$ 0
Due after 5 years through 10 years	60
Due after 10 years	363,823
Amortized Cost	363,883	$ 371,517
Held-to-maturity, Estimated Fair Value
Due within 5 years	0
Due after 5 years through 10 years	61
Due after 10 years	371,244
Estimated Fair Value	$ 371,305	$ 364,922

Investment Securities - Realize

Investment Securities - Realized Gains and Losses and Proceeds from Sales (Details)	Jan. 01, 2019USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Realized gains and losses and the proceeds from sales of securities
Proceeds from sales		$ 3,527,000	$ 4,462,000
Available-for-sale mortgage-backed securities sold		5,000,000
Transfer of securities from held-to-maturity to available-for-sale	$ 11,400,000	11,390,000
Number of securities sold			0
Proceeds from sale of investment securities available for sale		5,117,000
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	$ 4,400,000
Gross gains		40,000	45,000
Mortgage-backed securities
Realized gains and losses and the proceeds from sales of securities
Debt Securities, Available-for-sale, Realized Gain		$ 153,000
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		$ 8,644,000	4,462,000
Gross gains		$ 2,910,000	$ 45,000

Investment Securities - Securit

Investment Securities - Securities Pledged (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Pledged investment securities
Investment securities pledged to secure deposits made by state and local governments, securities sold under agreements to repurchase and transaction clearing accounts	$ 188.9	$ 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	Dec. 31, 2019USD ($)security	Dec. 31, 2018USD ($)security
Investment Securities
Less Than 12 Months Fair Value	$ 55,882	$ 57,154
Less Than 12 Months Unrealized Losses	(302)	(254)
12 Months or Longer Fair Value	34,492	220,338
12 Months or Longer Unrealized Losses	$ (712)	$ (9,025)
Total Number of Securities | security	30	81
Total Fair Value	$ 90,374	$ 277,492
Total Unrealized Losses	$ (1,014)	$ (9,279)

Investment Securities - Mortgag

Investment Securities - Mortgage-Backed Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Schedule of Investments [Line Items]
Fair market value of received mortgage-backed securities	$ 37,900,000
Net gain recognized on the securitization	344,000	$ 0
Fixed-rate mortgage loans
Schedule of Investments [Line Items]
Book value	36,800,000
Net gain recognized on the securitization	$ 1,500,000

Federal Home Loan Bank Stock (D

Federal Home Loan Bank Stock (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Federal Home Loan Bank Stock
Capital stock of the FHLB owned	$ 8,723	$ 8,093
Territorial Savings Bank
Federal Home Loan Bank Stock
Capital stock of the FHLB owned	$ 8,700	$ 8,100

Federal Reserve Bank Stock (Det

Federal Reserve Bank Stock (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Federal Reserve Bank Stock
Capital stock of the Federal Reserve Bank owned	$ 3,128	$ 3,114
Territorial Savings Bank
Federal Reserve Bank Stock
Requirement to hold shares of capital stock of the Federal Reserve Bank as a percentage of capital and surplus (as a percent)	6.00%
Capital stock of the Federal Reserve Bank owned	$ 3,100	$ 3,100

Loans Receivable and Allowanc_3

Loans Receivable and Allowance for Loan Losses - Components (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Real estate loans:
Total real estate loans	$ 1,580,212	$ 1,575,170
Other loans:
Total other loans	9,719	5,296
Less: Net unearned fees and discounts	(2,435)	(3,110)
Less: Allowance for loan losses	(2,712)	(2,642)	$ (2,548)
Total unearned fees, discounts and allowance for loan losses	(5,147)	(5,752)
Loans receivable, net	1,584,784	1,574,714
One- to four-family residential
Real estate loans:
Total real estate loans	1,536,781	1,531,149
Multi-family residential
Real estate loans:
Total real estate loans	9,965	12,151
Construction, Commercial and Other Mortgage Loans
Real estate loans:
Total real estate loans	23,382	20,780
Other loans:
Less: Allowance for loan losses	(511)	(443)	(539)
Home Equity Loans and Lines of Credit
Real estate loans:
Total real estate loans	10,084	11,090
Other loans:
Less: Allowance for loan losses	(1)	(1)	$ (1)
Loans on Deposit Accounts
Other loans:
Total other loans	235	357
Consumer and Other
Other loans:
Total other loans	$ 9,484	$ 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								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Activity in allowance for loan losses
Balance, beginning of year				$ 2,642				$ 2,548	$ 2,642	$ 2,548
Provision (reversal of provision) for loan losses	$ (4)	$ 111	$ (51)	5	$ 100	$ (50)	$ 60	9	61	119
Allowance for loan losses on loans receivable after provision (reversal of allowance)									2,703	2,667
Charge-offs									(48)	(41)
Recoveries									57	16
Net recoveries (charge-offs)									9	(25)
Balance, end of year	2,712				2,642				$ 2,712	2,642
Look back period to calculate historical loss of each segment									7 years
Residential Mortgage
Activity in allowance for loan losses
Balance, beginning of year				1,797				1,721	$ 1,797	1,721
Provision (reversal of provision) for loan losses									(84)	78
Allowance for loan losses on loans receivable after provision (reversal of allowance)									1,713	1,799
Charge-offs									(8)	(12)
Recoveries									36	10
Net recoveries (charge-offs)									28	(2)
Balance, end of year	1,741				1,797				1,741	1,797
Construction, Commercial and Other Mortgage Loans
Activity in allowance for loan losses
Balance, beginning of year				443				539	443	539
Provision (reversal of provision) for loan losses									68	(96)
Allowance for loan losses on loans receivable after provision (reversal of allowance)									511	443
Balance, end of year	511				443				511	443
Home Equity Loans and Lines of Credit
Activity in allowance for loan losses
Balance, beginning of year				1				1	1	1
Allowance for loan losses on loans receivable after provision (reversal of allowance)									1	1
Balance, end of year	1				1				1	1
Consumer and other loans
Activity in allowance for loan losses
Balance, beginning of year				47				55	47	55
Provision (reversal of provision) for loan losses									26	15
Allowance for loan losses on loans receivable after provision (reversal of allowance)									73	70
Charge-offs									(40)	(29)
Recoveries									21	6
Net recoveries (charge-offs)									(19)	(23)
Balance, end of year	54				47				54	47
Unallocated
Activity in allowance for loan losses
Balance, beginning of year				$ 354				$ 232	354	232
Provision (reversal of provision) for loan losses									51	122
Allowance for loan losses on loans receivable after provision (reversal of allowance)									405	354
Balance, end of year	$ 405				$ 354				$ 405	$ 354

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	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for loan losses:
Collectively evaluated for impairment	$ 2,712	$ 2,642
Total ending allowance balance	2,712	2,642	$ 2,548
Loans:
Individually evaluated for impairment	1,313	3,110
Collectively evaluated for impairment	1,586,183	1,574,246
Total ending loan balance	1,587,496	1,577,356
Residential Mortgage
Allowance for loan losses:
Collectively evaluated for impairment	1,741	1,797
Total ending allowance balance	1,741	1,797	1,721
Loans:
Individually evaluated for impairment	1,224	2,962
Collectively evaluated for impairment	1,543,125	1,537,292
Total ending loan balance	1,544,349	1,540,254
Construction, Commercial and Other Mortgage Loans
Allowance for loan losses:
Collectively evaluated for impairment	511	443
Total ending allowance balance	511	443	539
Loans:
Collectively evaluated for impairment	23,326	20,698
Total ending loan balance	23,326	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
Loans:
Individually evaluated for impairment	89	148
Collectively evaluated for impairment	9,997	10,945
Total ending loan balance	10,086	11,093
Consumer and other loans
Allowance for loan losses:
Collectively evaluated for impairment	54	47
Total ending allowance balance	54	47	55
Loans:
Collectively evaluated for impairment	9,735	5,311
Total ending loan balance	9,735	5,311
Unallocated
Allowance for loan losses:
Collectively evaluated for impairment	405	354
Total ending allowance balance	$ 405	$ 354	$ 232

Loans Receivable and Allowanc_6

Loans Receivable and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Impaired loans
Average Recorded Investment	$ 1,370	$ 3,195
Interest Income Recognized	34	53
Loans individually evaluated for impairment with a related allowance for loan loss	0	0
One- to four-family residential
Impaired loans
Average Recorded Investment	1,272	3,039
Interest Income Recognized	34	53
Home Equity Loans and Lines of Credit
Impaired loans
Average Recorded Investment	98	156
Individually Evaluated for Impairment
Impaired loans
Recorded Investment	1,313	3,110
Unpaid Principal Balance	1,793	3,710
Individually Evaluated for Impairment | One- to four-family residential
Impaired loans
Recorded Investment	1,224	2,962
Unpaid Principal Balance	1,615	3,486
Individually Evaluated for Impairment | Home Equity Loans and Lines of Credit
Impaired loans
Recorded Investment	89	148
Unpaid Principal Balance	$ 178	$ 224

Loans Receivable and Allowanc_7

Loans Receivable and Allowance for Loan Losses - Delinquent and Nonaccrual Loans (Details)	12 Months Ended
	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Nonaccrual Loans	$ 736,000	$ 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	6	11
Nonaccrual Loans	$ 736,000	$ 2,200,000
Interest collected on nonaccrual loans recorded as a reduction of principal	58,000	93,000
Non accrual loans, additional interest income that would have been recognized had the loans been accruing interest	$ 60,000	$ 133,000

Loans Receivable and Allowanc_8

Loans Receivable and Allowance for Loan Losses - Aging of Loans and Accrual Status (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 1,020	$ 1,247
Loans Not Past Due	1,586,476	1,576,109
Total ending loan balance	1,587,496	1,577,356
Nonaccrual Loans	736	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	959	1,170
Loans Not Past Due	1,533,446	1,526,949
Total ending loan balance	1,534,405	1,528,119
Nonaccrual Loans	647	2,065
Multi-family residential
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	9,944	12,135
Total ending loan balance	9,944	12,135
Construction, Commercial and Other Mortgage Loans
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	23,326	20,698
Total ending loan balance	23,326	20,698
Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	26	70
Loans Not Past Due	10,060	11,023
Total ending loan balance	10,086	11,093
Nonaccrual Loans	89	148
Loans on Deposit Accounts
Financing Receivable, Recorded Investment, Past Due
Loans Not Past Due	235	357
Total ending loan balance	235	357
Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	35	7
Loans Not Past Due	9,465	4,947
Total ending loan balance	9,500	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	33	43
30 - 59 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due		40
30 - 59 Days Past Due | Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	33	3
60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	986	325
60 - 89 Days Past Due | One- to four-family residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	959	292
60 - 89 Days Past Due | Home Equity Loans and Lines of Credit
Financing Receivable, Recorded Investment, Past Due
Total Past Due	26	29
60 - 89 Days Past Due | Consumer and Other
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1	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)	12 Months Ended
	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 1,166,000	$ 1,666,000
Real estate owned	$ 0	$ 0
Mortgage loans in process of foreclosure, number of contracts | loan	0
Accruing interest
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	3	4
Loans modified by troubled debt restructurings considered impaired	$ 577,000	$ 897,000
Non Accrual Loans
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	3	4
Loans modified by troubled debt restructurings considered impaired	$ 589,000	$ 769,000
Loans modified in troubled debt restructuring
Troubled debt restructurings
Number of Loans | loan	0	0
Number of loans subsequently defaulted | loan	0
Additional disclosures
Commitments to lend additional funds to borrowers	$ 0
One- to four-family residential
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 1,102,000	$ 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	4
Loans modified by troubled debt restructurings considered impaired	$ 577,000	$ 897,000
One- to four-family residential | Non Accrual Loans
Additional disclosures
Number of loans modified by troubled debt restructurings considered impaired | loan	2	3
Loans modified by troubled debt restructurings considered impaired	$ 525,000	$ 691,000
Home Equity Loans and Lines of Credit
Additional disclosures
Loans modified by troubled debt restructurings considered impaired	$ 64,000	$ 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
Loans modified by troubled debt restructurings considered impaired	$ 64,000	$ 78,000

Loans Receivable and Allowan_10

Loans Receivable and Allowance for Loan Losses - Collateral, Sales, Serviced for Others, Directors and Executive Officers (Details)	12 Months Ended
	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan
Accounts, Notes, Loans and Financing Receivable
Loans serviced for others	$ 65,100,000	$ 30,300,000
Fair market value of received mortgage-backed securities	37,900,000
Mortgage servicing assets	344,000
Net gain recognized on the securitization	344,000	0
Loans serviced for others, securitization for which the company continues to hold the related mortgage-backed securities	37,800,000	1,500,000
Loans serviced for others, amount of contractually specified servicing fees earned	114,000	88,000
Loans to related parties
Loans to directors and executive officers	$ 661,000	850,000
Fixed-rate mortgage loans | Maximum
Accounts, Notes, Loans and Financing Receivable
Loan to value ratio (as a percent)	80.00%
Residential Mortgage Loans Held For Sale
Accounts, Notes, Loans and Financing Receivable
Residential mortgage loans sold, loan amount	$ 10,100,000	10,000,000
Residential mortgage loans sold, recognized gains	$ 89,000	$ 72,000
Number of loans | loan	1	1
Residential mortgage loans held for sale	$ 470,000	$ 309,000
Fixed-rate mortgage loans
Accounts, Notes, Loans and Financing Receivable
Book value	36,800,000
Net gain recognized on the securitization	$ 1,500,000

Accrued Interest Receivable (De

Accrued Interest Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Components of accrued interest receivable
Accrued interest receivable	$ 5,409	$ 5,274
Loans receivable
Components of accrued interest receivable
Accrued interest receivable	4,425	4,302
Investment securities
Components of accrued interest receivable
Accrued interest receivable	952	960
Interest-bearing deposits
Components of accrued interest receivable
Accrued interest receivable	$ 32	$ 12

Mortgage Servicing Assets (Deta

Mortgage Servicing Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Gross carrying values, accumulated amortization, and net carrying values of mortgage servicing assets
Gain on sale of loans	$ 344,000	$ 0
Servicing Asset at Amortized Cost, Additions	344,000
Transfer to Investments	36,826,000
Proceeds from sale of mortgage loans on a servicing retained basis	2,200,000
Mortgage servicing assets
Balance at beginning of year	226,000	263,000
Additions	344,000
Impairments	(16,000)
Amortization	(51,000)	(37,000)
Balance at end of year	503,000	226,000
Gross carrying value	1,638,000	1,310,000
Accumulated amortization	(1,135,000)	(1,084,000)
Net carrying value	503,000	226,000
Estimated amortization expense
Net carrying value	503,000	226,000
Fair values and key assumptions used in determining the fair values of mortgage servicing assets
Fair value, beginning of year	291,000	311,000
Fair value, end of year	552,000	291,000
Annual cost to service (per loan, in dollars)	$ 75	$ 70
Weighted Average
Fair values and key assumptions used in determining the fair values of mortgage servicing assets
Discount rate (as a percent)	10.25%	10.50%
Weighted average prepayment speed assumption (CPR)	12.58%	8.86%
Mortgage-backed securities
Gross carrying values, accumulated amortization, and net carrying values of mortgage servicing assets
Transfer to Investments	$ 36,800,000
Mortgage Servicing Assets
Mortgage servicing assets
Net carrying value	503,000
Estimated amortization expense
2019	92,000
2020	73,000
2021	57,000
2022	46,000
2023	38,000
Thereafter	197,000
Net carrying value	$ 503,000

Interest Rate Lock and Forwar_3

Interest Rate Lock and Forward Loan Sale Commitments - Notional Amounts (Details) $ in Millions	Dec. 31, 2019USD ($)
Interest rate locks
Interest rate lock and forward loan sale commitments
Amount of derivatives	$ 1.8
Forward commitment | Loans receivable | Sale
Interest rate lock and forward loan sale commitments
Amount of derivatives	$ 2.2

Interest Rate Lock and Forwar_4

Interest Rate Lock and Forward Loan Sale Commitments - Location of Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets and liabilities related to derivatives
Fair value of asset derivatives	$ 5	$ 5
Fair value of liability derivatives	5	5
Interest rate contracts | Prepaid expenses and other assets
Assets and liabilities related to derivatives
Fair value of asset derivatives	5	5
Interest rate contracts | Accounts payable and accrued expenses
Assets and liabilities related to derivatives
Fair value of liability derivatives	$ 5	$ 5

Interest Rate Lock and Forwar_5

Interest Rate Lock and Forward Loan Sale Commitments - Location of Gains and Losses (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Interest Rate Lock and Forward Loan Sale Commitments
Gain (loss) related to derivatives	$ 0	$ 0

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Premises and equipment
Gross	$ 22,127	$ 21,505
Less accumulated depreciation and amortization	(17,900)	(16,729)
Net	4,227	4,776
Construction in progress	143	47
Total	4,370	4,823
Depreciation expense	1,200	1,300
Land
Premises and equipment
Gross	585	585
Buildings and improvements
Premises and equipment
Gross	1,365	1,365
Leasehold improvements
Premises and equipment
Gross	14,027	13,938
Furniture, fixtures and equipment
Premises and equipment
Gross	6,035	5,502
Automobiles
Premises and equipment
Gross	$ 115	$ 115

Deposits (Details)

Deposits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Deposit amount
Non-interest bearing	$ 54,927,000	$ 51,744,000
Savings accounts	908,175,000	991,310,000
Certificates of deposit	463,943,000	391,141,000
Money market	4,917,000	5,291,000
Checking and Super NOW	199,971,000	189,678,000
Total	$ 1,631,933,000	$ 1,629,164,000
Interest rate
Savings accounts (as a percent)	0.49%	0.50%
Certificates of deposit (as a percent)	1.87%	1.89%
Money market (as a percent)	0.45%	0.44%
Checking and Super NOW (as a percent)	0.02%	0.02%
Total (as a percent)	0.81%	0.77%
Maturity of certificate of deposit accounts
2019	$ 310,465,000
2020	88,002,000
2021	38,394,000
2022	14,666,000
2023	12,416,000
Total	463,943,000	$ 391,141,000
Deposit with balances greater than or equal to $250,000
Maximum amount of account owner deposit in bank insured by FDIC	250,000
Interest expense by type of deposit
Savings	4,593,000	4,842,000
Certificates of deposit and money market	8,829,000	6,134,000
Checking and Super NOW	41,000	39,000
Total	13,463,000	11,015,000
Overdrawn deposit accounts reclassified as loans	37,000	34,000
Domestic
Deposit with balances greater than or equal to $250,000
Total	$ 272,700,000	$ 244,600,000

Advances from the Federal Hom_3

Advances from the Federal Home Loan Bank (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Federal Home Loan Bank, Advances, Rolling Maturity
Due within one year	$ 20,000	$ 107,200
Due over 1 year to 2 years	57,000	20,000
Due over 2 years to 3 years	30,000	15,000
Due over 3 years to 4 years	19,000
Due over 4 years to 5 years	30,000
Total	$ 156,000	$ 142,200
Weighted Average Rate
Due within one year (as a percent)	2.16%	2.39%
Due over 1 year to 2 years (as a percent)	2.50%	2.16%
Due over 2 years to 3 years (as a percent)	2.37%	2.32%
Due over 3 years to 4 years (as a percent)	2.16%
Due over 4 years to 5 years (as a percent)	1.87%
Total (as a percent)	2.27%	2.35%
FHLB Des Moines
Federal Home Loan Bank advances
Available additional unused FHLB advances	$ 727,500	$ 769,300
Territorial Savings Bank | FHLB Des Moines
Federal Home Loan Bank advances
Percentage of total assets used to determine maximum line of credit	45.00%

Securities Sold Under Agreeme_3

Securities Sold Under Agreements to Repurchase - Summary of Repurchase Liability by Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Securities sold under agreements to repurchase
Repurchase Liability	$ 10,000	$ 30,000
Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.77%	1.66%
1 year or less
Securities sold under agreements to repurchase
Repurchase Liability	$ 5,000	$ 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%
Over 4 years to 5 years
Securities sold under agreements to repurchase
Repurchase Liability	$ 5,000
Over 4 years to 5 years | Weighted Average
Securities sold under agreements to repurchase
Rate (as a percent)	1.88%

Securities Sold Under Agreeme_4

Securities Sold Under Agreements to Repurchase - Summary of Securities Pledged (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Securities sold under agreements to repurchase
Repurchase liability maximum	90.00%
Maturing Over 90 days
Securities sold under agreements to repurchase
Carrying Value of Securities	$ 11,724
Fair Value of Securities	12,201
Repurchase Liability	10,000
Amount at Risk	$ 2,201
Weighted Average Months to Maturity	30 months

Offsetting of Financial Liabi_3

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

Income Taxes - Provision and Re

Income Taxes - Provision and Reconciliation to Federal Statutory Corporate Tax Rate (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current
Federal										$ 3,366	$ 3,752
State										1,479	1,530
Total current										4,845	5,282
Deferred
Federal										1,147	600
State										319	229
Total deferred										1,466	829
Total income tax expense		$ 1,148	$ 1,775	$ 1,415	$ 1,973	$ 1,737	$ 1,268	$ 1,347	$ 1,759	$ 6,311	$ 6,111
Federal statutory corporate tax rate (as a percent)	21.00%									21.00%	21.00%	35.00%
Reconciliation of tax provision
Income tax expense at statutory rate										$ 5,944	$ 5,318
Income tax effect of:
Other tax-exempt income										(263)	(182)
Share-based compensation										(69)	1
Meal and entertainment expenses										82	88
State income taxes, net of federal income tax benefits										1,301	1,246
Tax benefit from the exercise of stock options										(297)	(134)
Tax benefit from tax depreciation study (1)										(402)
Other										15	(226)
Total income tax expense		$ 1,148	$ 1,775	$ 1,415	$ 1,973	$ 1,737	$ 1,268	$ 1,347	$ 1,759	$ 6,311	$ 6,111
Effective income tax rate (as a percent)										22.29%	24.13%
Federal statutory corporate tax rate (as a percent)	21.00%									21.00%	21.00%	35.00%

Income Taxes - Components of In

Income Taxes - Components of Income Taxes Payable (Receivable) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Components of income taxes payable (receivable)
Current taxes payable	$ 2,305	$ 2,407
Deferred taxes receivable	(2,619)	(4,136)
State
Components of income taxes payable (receivable)
Current taxes payable	1,538	1,786
Deferred taxes receivable	(968)	(1,300)
Federal
Components of income taxes payable (receivable)
Current taxes payable	767	621
Deferred taxes receivable	$ (1,651)	$ (2,836)

Income Taxes - Deferred Tax Com

Income Taxes - Deferred Tax Components (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Premises and equipment		$ 547	$ 1,037
Hawaii franchise tax		479	468
Unfunded pension liability		925	691
Allowance for loan losses		722	703
Impaired asset write-down			765
Employee benefit plans		2,692	2,601
Equity incentive plan		350	399
Unrealized losses on securities available-for-sale			32
Deferred compensation		413	480
Net lease liability		161
Other		8	159
Total		6,297	7,335
Deferred tax liabilities:
Deferred loan costs		3,078	2,844
FHLB stock dividends		126	126
Prepaid expense		155	169
Unrealized gain on securities available-for-sale		185
Premium on loans sold		134	60
Total		3,678	3,199
Net deferred tax assets		$ 2,619	$ 4,136
Federal statutory corporate tax rate (as a percent)	21.00%	21.00%	21.00%	35.00%
Valuation allowance for deferred tax assets		$ 0	$ 0

Employee Benefit Plans - Pensio

Employee Benefit Plans - Pension Plan Participants (Details) - Pension Plan	Dec. 31, 2008	Dec. 31, 2019
Employee benefit plans
Required service period to participate in the plan		1 year
Vesting percentage for employees already enrolled with at least five years of service as of effective date of plan change	100.00%
Minimum service period for employees already enrolled to be 100% vested as of effective date of plan change	5 years
Vesting period if minimum service period for employees already enrolled was not met as of effective date of plan change	5 years

Employee Benefit Plans - Status

Employee Benefit Plans - Status of Pension Plan and SERP (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension Plan
Employee benefit plans
Accumulated benefit obligation at end of year	$ 21,367	$ 18,713
Change in projected benefit obligation:
Benefit obligation at beginning of year	18,713	19,314
Service cost	164	141
Interest cost	811	728
Actuarial loss (gain)	2,558	(611)
Benefits paid	(879)	(859)
Benefit obligation at end of year	21,367	18,713
Change in plan assets:
Fair value of plan assets at beginning of year	17,500	15,927
Actual return on plan assets	2,814	(968)
Employer contributions		3,400
Benefits paid	(879)	(859)
Fair value of plan assets at end of year	19,435	17,500
Funded status at end of year	(1,932)	(1,213)
Amounts recognized in accumulated other comprehensive loss:
Net actuarial loss	11,008	10,380
Prior service cost	139	144
Accumulated other comprehensive loss, before tax	11,147	10,524	$ 9,245
Pension Plan | Accounts payable and accrued expenses
Amounts recognized in the Consolidated Balance Sheets:
Accounts payable and accrued expenses - liability	(1,932)	(1,213)
Supplemental Employee Retirement Plan (SERP)
Employee benefit plans
Accumulated benefit obligation at end of year	9,702	9,473
Change in projected benefit obligation:
Benefit obligation at beginning of year	9,473	9,242
Service cost	84	97
Interest cost	162	151
Benefits paid	(17)	(17)
Benefit obligation at end of year	9,702	9,473
Change in plan assets:
Employer contributions	17	17
Benefits paid	(17)	(17)
Funded status at end of year	(9,702)	(9,473)
Supplemental Employee Retirement Plan (SERP) | Accounts payable and accrued expenses
Amounts recognized in the Consolidated Balance Sheets:
Accounts payable and accrued expenses - liability	$ (9,702)	$ (9,473)

Employee Benefit Plans - Change

Employee Benefit Plans - Changes Recognized in Accumulated Other Comprehensive Loss for Pension Plan (Details) - Pension Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Amounts recognized in accumulated other comprehensive loss:
Accumulated other comprehensive loss at beginning of year, before tax	$ 10,524	$ 9,245
Actuarial net loss arising during the period	961	1,562
Amortizations (recognized in net periodic benefit cost):
Actuarial loss	(333)	(278)
Prior service cost	(5)	(5)
Total recognized in other comprehensive loss	623	1,279
Accumulated other comprehensive loss at end of year, before tax	$ 11,147	$ 10,524

Employee Benefit Plans - Assump

Employee Benefit Plans - Assumptions Used to Determine Benefit Obligations and Pension Plan Investment Strategy (Details)	Dec. 31, 2019	Dec. 31, 2018
Pension Plan
Weighted average assumptions used to determine the year-end benefit obligations
Discount rate (as a percent)	3.30%	4.30%
Pension Plan | Domestic equity securities
Normal target allocation
Normal target allocation (as a percent)	55.00%
Pension Plan | International equity securities
Normal target allocation
Normal target allocation (as a percent)	10.00%
Pension Plan | Bonds
Normal target allocation
Normal target allocation (as a percent)	35.00%
Supplemental Employee Retirement Plan (SERP)
Weighted average assumptions used to determine the year-end benefit obligations
Discount rate (as a percent)	5.02%	5.03%
Rate of compensation increase (as a percent)	5.00%	5.00%

Employee Benefit Plans - Pens_2

Employee Benefit Plans - Pension Plan Assets Measured at Fair Value (Details) - Pension Plan - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets measured at fair values
Fair value of assets	$ 19,435	$ 17,500	$ 15,927
Cash
Assets measured at fair values
Fair value of assets	3,021	4,128
Equities
Assets measured at fair values
Fair value of assets	11,576	9,008
Mutual funds
Assets measured at fair values
Fair value of assets	4,838	4,364
Level 1
Assets measured at fair values
Fair value of assets	19,435	17,500
Level 1 | Cash
Assets measured at fair values
Fair value of assets	3,021	4,128
Level 1 | Equities
Assets measured at fair values
Fair value of assets	11,576	9,008
Level 1 | Mutual funds
Assets measured at fair values
Fair value of assets	$ 4,838	$ 4,364

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Pension Plan
Estimated future benefit payments
2020	$ 1,195,000
2021	1,263,000
2022	1,303,000
2023	1,309,000
2024	1,317,000
2025 - 2029	6,447,000
Total	$ 12,834,000
Assumptions used to determine the net periodic benefit cost:
Discount rate (as a percent)	4.30%	3.70%
Expected return on plan assets (as a percent)	7.25%	7.25%
Net periodic benefit cost (income) for the year:
Service cost	$ 164,000	$ 141,000
Interest cost	811,000	728,000
Expected return on plan assets	(1,217,000)	(1,204,000)
Amortization of prior service cost	5,000	5,000
Recognized actuarial loss	333,000	278,000
Net periodic benefit cost (income)	96,000	$ (52,000)
Estimated prior service cost and net actuarial loss that will be amortized from AOCI into net periodic pension benefit cost
Prior service cost	5,000
Net actuarial loss	337,000
Supplemental Employee Retirement Plan (SERP)
Estimated future benefit payments
2020	17,000
2021	8,639,000
2022	160,000
2023	149,000
2024	149,000
2025 - 2029	743,000
Total	$ 9,857,000
Assumptions used to determine the net periodic benefit cost:
Discount rate (as a percent)	5.02%	5.02%
Rate of compensation increase (as a percent)	5.00%	5.00%
Net periodic benefit cost (income) for the year:
Service cost	$ 84,000	$ 97,000
Interest cost	162,000	151,000
Net periodic benefit cost (income)	246,000	$ 248,000
Expected contribution
2019	$ 17,000

Employee Benefit Plans - Define

Employee Benefit Plans - Defined Contribution and Profit Sharing Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Defined Contribution Plan Disclosure [Line Items]
Required service period to participate in plans	1 year
401(k) plan
Defined Contribution Plan Disclosure [Line Items]
Company matching contribution of employees' contributions (as a percent)	5.00%	5.00%
Employer's matching contribution (in dollars)	$ 62,000	$ 60,000
Profit sharing plan
Defined Contribution Plan Disclosure [Line Items]
Employer's matching contribution (in dollars)	$ 0	$ 0

Employee Stock Ownership Plan -

Employee Stock Ownership Plan - Loan, Expense and Shares (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 10, 2009	Dec. 31, 2019	Dec. 31, 2018
Employee Stock Ownership Plan
Allocated shares		466,807	446,041
Unearned shares		440,397	489,329
Total ESOP shares		907,204	935,370
Fair value of unearned shares, in thousands		$ 13,626	$ 12,713
ESOP
Employee Stock Ownership Plan
Amount borrowed from employer	$ 9,800
Shares purchased	978,650
Percentage of shares issued in initial public offering	8.00%
Employee stock ownership plan, price per share of shares acquired in initial public offering (in dollars per share)	$ 10
Term of loan		20 years
ESOP expense		$ 1,400	$ 1,500
ESOP | Prime rate
Employee Stock Ownership Plan
Variable interest rate		prime rate, as published in The Wall Street Journal

Employee Stock Ownership Plan_2

Employee Stock Ownership Plan - Nonqualified ESOP Restoration Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
ESOP restoration | Certain executives
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits
Accrued (reversed) benefits	$ 350,000	$ 204,000

Share-Based Compensation - Plan

Share-Based Compensation - Plan Provisions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-Based Compensation
Compensation expense	$ 571	$ 341
Income tax benefit	$ 156	$ 93
Number of shares authorized	1,862,637
2010 Equity Incentive Plan | Vesting period one
Share-Based Compensation
Vesting period	3 years
2010 Equity Incentive Plan | Vesting period two
Share-Based Compensation
Vesting period	5 years
2010 Equity Incentive Plan | Vesting period three
Share-Based Compensation
Vesting period	6 years

Share-Based Compensation - Stoc

Share-Based Compensation - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock option activity
Granted (in shares)	0
Common Stock
Stock option activity
Exercised (in shares)	221,245	73,889
Stock option activity
Shares of common stock issued in exchange for stock options and common shares	91,840
Common shares exchanged	129,405
Stock Options
Stock option activity
Balance at beginning of period (in shares)	337,654	411,543
Exercised (in shares)	221,245	73,889
Balance at end of period (in shares)	116,409	337,654	411,543
Options vested and exercisable (in shares)	116,409
Weighted Average Exercise Price
Balance at beginning of period (in dollars per share)	$ 17.51	$ 17.48
Exercised (in dollars per share)	17.50	17.36
Balance at end of period (in dollars per share)	17.53	$ 17.51	$ 17.48
Options vested and exercisable (in dollars per share)	$ 17.53
Remaining Contractual Life
Options outstanding	8 months 19 days	1 year 8 months 27 days	2 years 8 months 23 days
Options vested and exercisable	8 months 19 days
Aggregate Intrinsic Value
Beginning of period	$ 2,859,000	$ 5,509,000
Exercised	2,483,000	973,000
End of period	1,562,000	2,859,000	$ 5,509,000
Options vested and exercisable	1,562,000
Stock option activity
Intrinsic value of stock options exercised	2,483,000	973,000
Proceeds received from stock options exercised	3,873,000	1,283,000
Tax benefits realized from stock options exercised	534,000	229,000
Total fair value of stock options that vested		$ 35,000
Unrecognized compensation costs	$ 0

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Awards (Details) - USD ($)	Mar. 07, 2019	Dec. 31, 2019	Dec. 31, 2018	May 16, 2019
Unrecognized compensation
Granted (in shares)		0
Restricted Stock
Restricted Stock Awards
Unvested at beginning of period (in shares)		16,424	10,806
Granted (in shares)		10,366	10,019
Vested (in shares)		6,541	4,401
Unvested at end of period (in shares)		20,249	16,424
Weighted Average Grant Date Fair Value
Unvested 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
Unvested at end of period (in dollars per share)		$ 28.78	$ 30.26
Unrecognized compensation
Vesting period		3 years
Unrecognized compensation costs		$ 365,000
Unrecognized compensation costs, period of recognition		1 year 8 months 12 days
Equity Incentive Plan, 2019
Unrecognized compensation
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant				15,000
Restricted Stock Units Based on a Performance Condition
Restricted Stock Awards
Unvested at beginning of period (in shares)		23,538	11,520
Granted (in shares)		12,438	12,018
Unvested at end of period (in shares)		35,976	23,538
Weighted Average Grant Date Fair Value
Unvested at beginning of period (in dollars per share)		$ 30.14	$ 29.53
Granted (in dollars per share)		27.30	30.73
Unvested at end of period (in dollars per share)		$ 29.16	$ 30.14
Unrecognized compensation
Vesting period		3 years
Unrecognized compensation costs		$ 311,000
Unrecognized compensation costs, period of recognition		1 year 10 months 24 days
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
Unvested at beginning of period (in shares)		5,884	2,879
Granted (in shares)		3,110	3,005
Unvested at end of period (in shares)		8,994	5,884
Weighted Average Grant Date Fair Value
Unvested at beginning of period (in dollars per share)		$ 26.42	$ 24.44
Granted (in dollars per share)		24.45	28.32
Unvested at end of period (in dollars per share)		$ 25.74	26.42
Unrecognized compensation
Vesting period		3 years
Unrecognized compensation costs		$ 67,000
Unrecognized compensation costs, period of recognition		1 year 10 months 24 days
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								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share
Net income	$ 5,045	$ 5,366	$ 5,060	$ 6,524	$ 4,643	$ 4,786	$ 4,963	$ 4,820	$ 21,995	$ 19,212
Income allotted to participating securities									(149)	(90)
Net income available to common shareholders									$ 21,846	$ 19,122
Weighted-average number of shares used in:
Basic earnings per share (in shares)									9,196,674	9,219,123
Dilutive common stock equivalents:
Stock options and restricted stock units (in shares)									128,940	181,272
Diluted earnings per share (in shares)									9,325,614	9,400,395
Net income per common share, basic (in dollars per share)	$ 0.54	$ 0.58	$ 0.55	$ 0.71	$ 0.50	$ 0.52	$ 0.54	$ 0.52	$ 2.38	$ 2.07
Net income per common share, diluted (in dollars per share)	$ 0.53	$ 0.57	$ 0.54	$ 0.70	$ 0.50	$ 0.51	$ 0.53	$ 0.51	$ 2.34	$ 2.03

Other Comprehensive Income and

Other Comprehensive Income and Loss - Changes in Components of Accumulated Other Comprehensive Income and Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	$ (235,079)	$ (234,854)
Other comprehensive (gain) loss, net of taxes	(141)	980
Balances at end of period	(243,890)	(235,079)
Accumulated Other Comprehensive Loss
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	7,809	5,694
Other comprehensive (gain) loss, net of taxes	(141)	980
Amounts reclassified from retained earnings		1,135
Net current period other comprehensive (gain) loss	(141)	2,115
Balances at end of period	7,668	7,809
Unfunded Pension Liability
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	7,721	5,657
Other comprehensive (gain) loss, net of taxes	457	938
Amounts reclassified from retained earnings		1,126
Net current period other comprehensive (gain) loss	457	2,064
Balances at end of period	8,178	7,721
Unrealized (gain)/loss on securities
Changes in the components of accumulated other comprehensive loss, net of taxes
Balances at beginning of period	88	37
Other comprehensive (gain) loss, net of taxes	(598)	42
Amounts reclassified from retained earnings		9
Net current period other comprehensive (gain) loss	(598)	51
Balances at end of period	$ (510)	$ 88

Other Comprehensive Income an_2

Other Comprehensive Income and Loss - Tax Effect on Each Component (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Tax effect on each component of other comprehensive loss
After Tax Amount	$ (141)	$ 980
Accumulated Other Comprehensive Loss
Tax effect on each component of other comprehensive loss
Pretax amount	(192)	1,336
Tax	51	(356)
After Tax Amount	(141)	980
Unfunded Pension Liability
Tax effect on each component of other comprehensive loss
Pretax amount	623	1,279
Tax	(166)	(341)
After Tax Amount	457	938
Unrealized (gain)/loss on securities
Tax effect on each component of other comprehensive loss
Pretax amount	(815)	57
Tax	217	(15)
After Tax Amount	$ (598)	$ 42

Commitments - Loans (Details)

Commitments - Loans (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Commitments to originate loans
Loan Commitments
Commitment amount	$ 8.7	$ 7.9
Commitments to originate loans | Minimum
Loan Commitments
Interest rate (as a percent)	3.375%	4.125%
Commitments to originate loans | Maximum
Loan Commitments
Interest rate (as a percent)	4.00%	5.00%
Unused lines of credit to borrowers
Loan Commitments
Commitment amount	$ 24.5	$ 26.9

Commitments - Leases (Details)

Commitments - Leases (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Reserve Requirements
Federal Reserve Bank reserve requirements	$ 13.5	$ 11.9

Regulatory Capital and Superv_3

Regulatory Capital and Supervision (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)item	Jan. 01, 2019	Jan. 01, 2016	Jan. 01, 2015USD ($)	Dec. 31, 2014
Total Risk-Based Capital
Number of conditions or events that have changed the institution's category under capital guidelines | item	0	0
Territorial Savings Bank
Regulatory capital and supervision
Well capitalized threshold for Tier 1 risk-based capital (percent)	8.00%					6.00%
Well capitalized threshold for Common Equity Tier 1 risk-based capital (percent)	6.50%
Minimum capital conservation buffer	2.50%		2.50%	0.625%
Tier 1 Leverage Capital
Required Ratio	5.00%	5.00%
Actual Amount	$ 227,507	$ 225,694
Actual Ratio	10.92%	11.09%
Common Equity Tier 1 Risk-Based Capital
Required Ratio	9.00%	9.00%
Actual Amount	$ 227,507	$ 225,694
Actual Ratio	23.31%	23.50%
Tier 1 Risk-Based Capital
Required Ratio	10.50%	10.50%
Actual Amount	$ 227,507	$ 225,694
Actual Ratio	23.31%	23.50%
Total Risk-Based Capital
Required Ratio	12.50%	12.50%
Actual Amount	$ 230,304	$ 228,423
Actual Ratio	23.59%	23.78%
Territorial Bancorp Inc.
Regulatory capital and supervision
Threshold of assets requiring consolidated regulatory capital requirements identical to those applicable to subsidiary depository institutions	$ 3,000,000				$ 1,000,000
Tier 1 Leverage Capital
Actual Amount	$ 251,558	$ 242,888
Actual Ratio	12.06%	11.92%
Common Equity Tier 1 Risk-Based Capital
Actual Amount	$ 251,558	$ 242,888
Actual Ratio	25.77%	25.29%
Tier 1 Risk-Based Capital
Actual Amount	$ 251,558	$ 242,888
Actual Ratio	25.77%	25.29%
Total Risk-Based Capital
Actual Amount	$ 254,355	$ 245,617
Actual Ratio	26.06%	25.57%

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenues
Revenue from contracts with customers	$ 1,528	$ 1,539
Other revenue	1,019	643
Total	1,937	1,886
Total	610	296
Total	2,547	2,182
Service Fees on Loan and Deposit Accounts
Revenues
Revenue from contracts with customers	1,378	1,401
Other revenue	559	485
Total	1,937	1,886
Other
Revenues
Revenue from contracts with customers	150	138
Other revenue	460	158
Total	$ 610	$ 296

Leases - Lease Costs (Details)

Leases - Lease Costs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Leases
Minimum rental expense	$ 110,000	$ 110,000
Lease costs:
Operating lease costs	3,130,000
Short-term lease costs	57,000
Variable lease costs	129,000
Total lease costs	3,316,000
Rental expense, minimum rentals	$ 15,178,000	$ 3,100,000

Leases - Future Minimum Rental

Leases - Future Minimum Rental Commitments Under Noncancellable Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Future minimum rental commitments:
2020	$ 3,171
2021	2,632
2022	2,374
2023	2,088
2024	1,801
Thereafter	3,112
Total	15,178		$ 3,100
Less present value discount	2,995
Present value of leases	$ 12,183	$ 13,200

Leases - Other Related Informat

Leases - Other Related Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Leases
Cash paid for amounts included in measurement of lease liabilities	$ 2,991
ROU assets obtained in exchange for new operating lease liabilities	$ 14,341
Weighted-average remaining lease term (years)	5 years 11 months 27 days
Weighted-average discount rate	2.76%

Leases - Future minimum renta_2

Leases - Future minimum rental income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Leases
2020	$ 110,000
2021	110,000
Total	220,000
Minimum rental expense	$ 110,000	$ 110,000

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Estimated Fair Values (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Investment securities available for sale, at fair value	$ 8,628	$ 2,560
Investment securities held to maturity	371,305	364,922
Carrying Amount
Assets
Cash and cash equivalents	44,806	47,063
Investment securities available for sale, at fair value	8,628	2,560
Investment securities held to maturity	363,883	371,517
Loans held for sale	470	309
Loans receivable, net	1,584,784	1,574,714
FHLB stock	8,723	8,093
FRB stock	3,128	3,114
Accrued interest receivable	5,409	5,274
Interest rate contracts	5	5
Liabilities
Deposits	1,631,933	1,629,164
Advances from the Federal Home Loan Bank	156,000	142,200
Securities sold under agreements to repurchase	10,000	30,000
Accrued interest payable	397	243
Interest rate contracts	5	5
Estimated Fair Value
Assets
Cash and cash equivalents	44,806	47,063
Investment securities available for sale, at fair value	8,628	2,560
Investment securities held to maturity	371,305	364,922
Loans held for sale	480	319
Loans receivable, net	1,627,903	1,553,672
FHLB stock	8,723	8,093
FRB stock	3,128	3,114
Accrued interest receivable	5,409	5,274
Interest rate contracts	5	5
Liabilities
Deposits	1,632,741	1,626,587
Advances from the Federal Home Loan Bank	156,906	141,874
Securities sold under agreements to repurchase	9,968	29,876
Accrued interest payable	397	243
Interest rate contracts	5	5
Estimated Fair Value | Level 1
Assets
Cash and cash equivalents	44,806	47,063
Accrued interest receivable	32	12
Estimated Fair Value | Level 2
Assets
Investment securities available for sale, at fair value	8,628	2,560
Investment securities held to maturity	371,305	364,219
Loans held for sale	480	319
FHLB stock	8,723	8,093
FRB stock	3,128	3,114
Accrued interest receivable	952	960
Interest rate contracts	5	5
Liabilities
Deposits	1,167,990	1,238,023
Advances from the Federal Home Loan Bank	156,906	141,874
Securities sold under agreements to repurchase	9,968	29,876
Accrued interest payable	47	111
Interest rate contracts	5	5
Estimated Fair Value | Level 3
Assets
Investment securities held to maturity		703
Loans receivable, net	1,627,903	1,553,672
Accrued interest receivable	4,425	4,302
Liabilities
Deposits	464,751	388,564
Accrued interest payable	$ 350	$ 132

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets and Liabilities Measured at Fair Value on Recurring Basis
Investment securities available for sale, at fair value	$ 8,628	$ 2,560
Fair Value, Measurements, Recurring
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	5	5
Interest rate contracts - liabilities	(5)	(5)
Investment securities available for sale, at fair value	8,628	2,560
Fair Value, Measurements, Recurring | Level 2
Assets and Liabilities Measured at Fair Value on Recurring Basis
Interest rate contracts - assets	5	5
Interest rate contracts - liabilities	(5)	(5)
Investment securities available for sale, at fair value	$ 8,628	$ 2,560

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Nonrecurring Basis (Details)	12 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Mortgage servicing assets, Fair value	$ 552,000	$ 291,000	$ 311,000
Annual cost to service (per loan, in dollars)	$ 75	$ 70
Level 3
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Servicing Asset, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Fair Value, Measurements, Nonrecurring
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Mortgage servicing assets, Fair value	$ 452,000
Mortgage servicing assets, Total losses	(16,000)
Fair Value, Measurements, Nonrecurring | Level 3
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Mortgage servicing assets, Fair value	$ 452,000
Discount rate | Fair Value, Measurements, Nonrecurring | 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) | Fair Value, Measurements, Nonrecurring | Level 3
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Servicing Asset, Measurement Input	75,000
Discounted cash flow model | Fair Value, Measurements, Nonrecurring | Level 3 | Mortgage Servicing Assets
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Fair value	$ 452,000
Minimum | Prepayment speed (CPR) | Level 3
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Servicing Asset, Measurement Input	9.11
Maximum | Prepayment speed (CPR) | Level 3
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses
Servicing Asset, Measurement Input	13.06

Parent Company Only - Condensed

Parent Company Only - Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Prepaid expenses and other assets	$ 2,800	$ 2,537
Total assets	2,086,313	2,069,206
Liabilities and Equity
Equity	243,890	235,079	$ 234,854
Total liabilities and stockholders' equity	2,086,313	2,069,206
Territorial Bancorp Inc.
Assets
Cash	22,602	16,389
Investment in Territorial Savings Bank	219,838	217,884
Receivable from Territorial Savings Bank	1,377	741
Prepaid expenses and other assets	233	154
Total assets	244,050	235,168
Liabilities and Equity
Other liabilities	160	89
Equity	243,890	235,079
Total liabilities and stockholders' equity	$ 244,050	$ 235,168

Parent Company Only - Condens_2

Parent Company Only - Condensed Statement of Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Interest and dividend income:
Total interest income	$ 18,801	$ 18,948	$ 19,114	$ 18,705	$ 18,607	$ 18,278	$ 18,182	$ 18,234	$ 75,568	$ 73,301
Noninterest expense:
Salaries									22,580	22,159
Other general and administrative expenses									4,555	4,423
Total noninterest expense	9,320	9,401	9,511	9,774	9,224	9,503	9,374	9,393	38,006	37,494
Income before income taxes	6,193	7,141	6,475	8,497	6,380	6,054	6,310	6,579	28,306	25,323
Income taxes	1,148	1,775	1,415	1,973	1,737	1,268	1,347	1,759	6,311	6,111
Net income	$ 5,045	$ 5,366	$ 5,060	$ 6,524	$ 4,643	$ 4,786	$ 4,963	$ 4,820	21,995	19,212
Territorial Bancorp Inc.
Interest and dividend income:
Dividends from Territorial Savings Bank									21,250	14,500
Interest-earning deposit with Territorial Savings Bank									35	43
Total interest income									21,285	14,543
Noninterest expense:
Salaries									43	38
Other general and administrative expenses									676	791
Total noninterest expense									719	829
Income before income taxes									20,566	13,714
Income taxes									(177)	(107)
Income before equity in undistributed earnings in subsidiaries									20,743	13,821
Equity in undistributed earnings of Territorial Savings Bank, net of dividends									1,252	5,391
Net income									$ 21,995	$ 19,212

Parent Company Only - Condens_3

Parent Company Only - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 21,995	$ 19,212
Adjustments to reconcile net income to net cash provided by operating activities:
Net (increase) decrease in prepaid expenses and other assets	81	1,315
Net cash from operating activities	22,327	21,626
Cash flows from investing activities:
Net cash from investing activities	(6,037)	(53,761)
Cash flows from financing activities:
Proceeds from issuance of common stock	170
Repurchases of common stock	(1,597)	(9,270)
Cash dividends paid	(13,689)	(10,490)
Net cash from financing activities	(18,547)	47,109
Net (decrease) increase in cash and cash equivalents	(2,257)	14,974
Cash and cash equivalents at beginning of the period	47,063	32,089
Cash and cash equivalents at end of the period	44,806	47,063
Territorial Bancorp Inc.
Cash flows from operating activities:
Net income	21,995	19,212
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of Territorial Savings Bank, net of dividends	(1,252)	(5,391)
ESOP expense	1,398	1,456
Net (increase) decrease in prepaid expenses and other assets	(715)	785
Net increase (decrease) in other liabilities	(97)	(6)
Net cash from operating activities	21,329	16,056
Cash flows from financing activities:
Proceeds from issuance of common stock	170
Repurchases of common stock	(1,597)	(9,270)
Cash dividends paid	(13,689)	(10,490)
Net cash from financing activities	(15,116)	(19,760)
Net (decrease) increase in cash and cash equivalents	6,213	(3,704)
Cash and cash equivalents at beginning of the period	16,389	20,093
Cash and cash equivalents at end of the period	$ 22,602	$ 16,389

Unaudited Quarterly Financial_3

Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Unaudited Quarterly Financial Information
Interest income	$ 18,801	$ 18,948	$ 19,114	$ 18,705	$ 18,607	$ 18,278	$ 18,182	$ 18,234	$ 75,568	$ 73,301
Interest expense	4,309	4,397	4,452	3,869	3,742	3,517	3,275	2,995	17,027	13,529
Net interest income	14,492	14,551	14,662	14,836	14,865	14,761	14,907	15,239	58,541	59,772
Provision (reversal of provision) for loan losses	(4)	111	(51)	5	100	(50)	60	9	61	119
Net interest income after provision for loan losses	14,496	14,440	14,713	14,831	14,765	14,811	14,847	15,230	58,480	59,653
Noninterest income	1,017	2,102	1,273	3,440	839	746	837	742	7,832	3,164
Noninterest expense	9,320	9,401	9,511	9,774	9,224	9,503	9,374	9,393	38,006	37,494
Income before income taxes	6,193	7,141	6,475	8,497	6,380	6,054	6,310	6,579	28,306	25,323
Income taxes	1,148	1,775	1,415	1,973	1,737	1,268	1,347	1,759	6,311	6,111
Net income	$ 5,045	$ 5,366	$ 5,060	$ 6,524	$ 4,643	$ 4,786	$ 4,963	$ 4,820	$ 21,995	$ 19,212
Basic earnings per share (in dollars per share)	$ 0.54	$ 0.58	$ 0.55	$ 0.71	$ 0.50	$ 0.52	$ 0.54	$ 0.52	$ 2.38	$ 2.07
Diluted earnings per share (in dollars per share)	0.53	0.57	0.54	0.70	0.50	0.51	0.53	0.51	2.34	2.03
Cash dividends declared per common share (in dollars per share)	$ 0.73	$ 0.22	$ 0.32	$ 0.22	$ 0.42	$ 0.22	$ 0.30	$ 0.20	$ 1.49	$ 1.14

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Jan. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)		$ 0.73	$ 0.22	$ 0.32	$ 0.22	$ 0.42	$ 0.22	$ 0.30	$ 0.20	$ 1.49	$ 1.14
Subsequent event
Subsequent Events
Quarterly cash dividend declared on common stock (in dollars per share)	$ 0.23