Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Entity File Number | 001-34403 | |
Entity Registrant Name | Territorial Bancorp Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 26-4674701 | |
Entity Address, Address Line One | 1003 Bishop Street, Pauahi Tower Suite 500 | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 946-1400 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | TBNK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,924,931 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001447051 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 84,860 | $ 40,553 |
Investment securities available for sale, at fair value | 21,073 | 20,821 |
Investment securities held to maturity, at amortized cost (fair value of $602,045 and $591,084 at March 31, 2023 and December 31, 2022, respectively) | 715,601 | 717,773 |
Loans receivable, net | 1,291,310 | |
Loans receivable, net | 1,294,764 | |
Federal Home Loan Bank stock, at cost | 12,444 | 8,197 |
Federal Reserve Bank stock, at cost | 3,177 | 3,170 |
Accrued interest receivable | 6,128 | 6,115 |
Premises and equipment, net | 7,422 | 7,599 |
Right-of-use asset, net | 13,901 | 14,498 |
Bank-owned life insurance | 47,986 | 47,783 |
Deferred income tax assets, net | 2,097 | 1,643 |
Prepaid expenses and other assets | 6,828 | 6,676 |
Total assets | 2,212,827 | 2,169,592 |
Liabilities: | ||
Deposits | 1,661,973 | 1,716,152 |
Advances from the Federal Home Loan Bank | 246,000 | 141,000 |
Securities sold under agreements to repurchase | 10,000 | 10,000 |
Accounts payable and accrued expenses | 22,453 | 24,180 |
Lease liability | 14,720 | 15,295 |
Income taxes payable | 1,034 | 838 |
Advance payments by borrowers for taxes and insurance | 2,886 | 5,577 |
Total liabilities | 1,959,066 | 1,913,042 |
Commitments and contingencies | ||
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 9,006,551 and 9,071,076 shares at March 31, 2023 and December 31, 2022, respectively | 90 | 91 |
Additional paid-in capital | 50,556 | 51,825 |
Unearned ESOP shares | (2,814) | (2,936) |
Retained earnings | 213,336 | 215,314 |
Accumulated other comprehensive loss | (7,407) | (7,744) |
Total stockholders' equity | 253,761 | 256,550 |
Total liabilities and stockholders' equity | $ 2,212,827 | $ 2,169,592 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets | ||
Investment securities held to maturity, fair value (in dollars) | $ 602,045 | $ 591,084 |
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 | 9,006,551 | 9,071,076 |
Common stock, shares outstanding | 9,006,551 | 9,071,076 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest income: | ||
Loans | $ 11,454 | $ 11,357 |
Investment securities | 4,540 | 3,423 |
Other investments | 727 | 176 |
Total interest income | 16,721 | 14,956 |
Interest expense: | ||
Deposits | 3,530 | 597 |
Advances from the Federal Home Loan Bank | 1,054 | 511 |
Securities sold under agreements to repurchase | 46 | 44 |
Total interest expense | 4,630 | 1,152 |
Net interest income | 12,091 | 13,804 |
Reversal of provision for credit losses | (100) | |
Reversal of provision for credit losses | (168) | |
Net interest income after reversal of provision for credit losses | 12,191 | 13,972 |
Noninterest income: | ||
Service and other fees | 310 | 341 |
Income on bank-owned life insurance | 203 | 197 |
Net gain on sale of loans | 1 | 18 |
Other | 75 | 1,097 |
Total noninterest income | 589 | 1,653 |
Noninterest expense: | ||
Salaries and employee benefits | 5,404 | 5,613 |
Occupancy | 1,623 | 1,594 |
Equipment | 1,312 | 1,196 |
Federal deposit insurance premiums | 245 | 141 |
Other general and administrative expenses | 1,029 | 1,054 |
Total noninterest expense | 9,613 | 9,598 |
Income before income taxes | 3,167 | 6,027 |
Income taxes | 851 | 1,317 |
Net income | $ 2,316 | $ 4,710 |
Basic earnings per share (in dollars per share) | $ 0.26 | $ 0.52 |
Diluted earnings per share (in dollars per share) | 0.26 | 0.52 |
Cash dividends declared per common share (in dollars per share) | $ 0.23 | $ 0.23 |
Basic weighted-average shares outstanding (in shares) | 8,774,634 | 8,980,135 |
Diluted weighted-average shares outstanding (in shares) | 8,806,744 | 9,014,454 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Consolidated Statements of Comprehensive Income | ||
Net income | $ 2,316 | $ 4,710 |
Unrealized gain (loss) on securities | 337 | (103) |
Total other comprehensive income (loss), net of tax | 337 | (103) |
Comprehensive income | $ 2,653 | $ 4,607 |
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)/Income | Total |
Balance at Dec. 31, 2021 | $ 93 | $ 56,951 | $ (3,425) | $ 208,227 | $ (5,524) | $ 256,322 |
Balance (in shares) at Dec. 31, 2021 | 9,324,060 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 4,710 | 4,710 | ||||
Other comprehensive (loss) income | (103) | (103) | ||||
Cash dividends declared | (2,055) | (2,055) | ||||
Share-based compensation | 134 | 134 | ||||
Share-based compensation (in shares) | 15,671 | |||||
Allocation of ESOP shares | 182 | 122 | 304 | |||
Repurchase of shares of common stock | (1,330) | (1,330) | ||||
Repurchase of shares of common stock (in shares) | (53,741) | |||||
Balance at Mar. 31, 2022 | $ 93 | 55,937 | (3,303) | 210,882 | (5,627) | 257,982 |
Balance (in shares) at Mar. 31, 2022 | 9,285,990 | |||||
Balance at Dec. 31, 2022 | $ 91 | 51,825 | (2,936) | 215,314 | (7,744) | 256,550 |
Balance (in shares) at Dec. 31, 2022 | 9,071,076 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 2,316 | 2,316 | ||||
Other comprehensive (loss) income | 337 | 337 | ||||
Cumulative change in accounting principle (1) | (2,319) | (2,319) | ||||
Cash dividends declared | (1,975) | (1,975) | ||||
Share-based compensation | (42) | (42) | ||||
Share-based compensation (in shares) | 4,540 | |||||
Allocation of ESOP shares | 159 | 122 | 281 | |||
Repurchase of shares of common stock | $ (1) | (1,386) | (1,387) | |||
Repurchase of shares of common stock (in shares) | (69,065) | |||||
Balance at Mar. 31, 2023 | $ 90 | $ 50,556 | $ (2,814) | $ 213,336 | $ (7,407) | $ 253,761 |
Balance (in shares) at Mar. 31, 2023 | 9,006,551 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Consolidated Statements of Stockholders' Equity, Share Data | ||
Cash dividends declared per common share (in dollars per share) | $ 0.23 | $ 0.23 |
Common Stock | ||
Consolidated Statements of Stockholders' Equity, Share Data | ||
Allocation of ESOP shares, shares | 12,234 | 12,234 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 2,316 | $ 4,710 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Reversal of provision for credit losses | (100) | |
Reversal of provision for credit losses | (168) | |
Depreciation and amortization | 292 | 317 |
Deferred income tax expense | 266 | 232 |
(Accretion) amortization of fees, discounts, and premiums, net | (90) | 43 |
Amortization of right-of-use asset | 716 | 700 |
Origination of loans held for sale | (355) | (3,032) |
Proceeds from sales of loans held for sale | 356 | 1,988 |
Gain on sale of loans, net | (1) | (7) |
ESOP expense | 281 | 304 |
Share-based compensation expense | (42) | 134 |
Net increase in accrued interest receivable | (13) | (63) |
Net increase in bank-owned life insurance | (203) | (197) |
Net increase in prepaid expenses and other assets | (154) | (5,661) |
Net decrease in accounts payable and accrued expenses | (1,661) | (233) |
Net decrease in lease liability | (694) | (702) |
Net decrease in advance payments by borrowers for taxes and insurance | (2,691) | (2,649) |
Net increase in income taxes payable | 196 | 610 |
Net cash used in operating activities | (1,581) | (3,674) |
Cash flows from investing activities: | ||
Purchases of investment securities held to maturity | (6,693) | (46,832) |
Purchases of investment securities available for sale | (5,408) | |
Principal repayments on investment securities held to maturity | 8,879 | 19,403 |
Principal repayments on investment securities available for sale | 220 | |
Principal repayments on loans receivable, net of loan originations | 409 | 7,680 |
Purchases of Federal Home Loan Bank stock | (5,087) | (24) |
Proceeds from redemption of Federal Home Loan Bank stock | 840 | |
Purchases of Federal Reserve Bank stock | (7) | (5) |
Proceeds from bank-owned life insurance | 4,431 | |
Purchases of premises and equipment | (116) | (138) |
Net cash from investing activities | (1,555) | (20,893) |
Cash flows from financing activities: | ||
Net decrease in deposits | (54,179) | (6,260) |
Proceeds from advances from the Federal Home Loan Bank | 126,000 | |
Repayments of advances from the Federal Home Loan Bank | (21,000) | |
Repurchases of common stock | (1,345) | (1,135) |
Cash dividends paid | (2,033) | (2,113) |
Net cash provided by (used in) financing activities | 47,443 | (9,508) |
Net change in cash and cash equivalents | 44,307 | (34,075) |
Cash and cash equivalents at beginning of the year | 40,553 | 99,859 |
Cash and cash equivalents at end of the year | 84,860 | 65,784 |
Cash paid for: | ||
Interest on deposits and borrowings | 4,318 | 1,141 |
Income taxes | 390 | 475 |
Supplemental disclosure of noncash investing and financing activities: | ||
Company stock repurchased through stock swap and net settlement transactions | 43 | 194 |
Establishment of right-of-use asset, net of incentives and modifications | 118 | 4,798 |
Establishment of lease liability, net of modifications | $ 118 | $ 4,798 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2023 | |
Organization | |
Organization | (1) Organization Territorial Bancorp Inc. (the Company) is a Maryland corporation and is the holding company for Territorial Savings Bank (the Bank). Territorial Savings Bank is a Hawaii state-chartered bank headquartered in Honolulu, Hawaii and is a member of the Federal Reserve System. Territorial Savings Bank has an inactive subsidiary, Territorial Financial Services, Inc. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of Territorial Bancorp Inc. have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited interim condensed consolidated financial statements and notes should be read in conjunction with the Company’s consolidated financial statements and notes thereto filed as part of the Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments necessary for a fair presentation have been made and consist only of normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. (b) Allowance of Credit Losses (ACL) on Loans and Securities The current expected credit losses (CECL) accounting standard requires an estimate of the credit losses expected over the life of the financial instrument. CECL replaces the incurred loss approach that delayed the recognition of a credit loss until it was probable and a loss event occurred. The estimate of expected credit losses is based on information about past events, current conditions and reasonable and supportable forecasts that affect the collectability of financial instruments. Historical loss experience is generally the starting point for estimating expected credit losses. The Company considers whether the historical loss experience should be adjusted for asset specific risk characteristics or current conditions at the reporting date that did not exist over the historical reporting period. These qualitative adjustment can include changes in the economy, loan underwriting standards, and delinquency trends. The Company then considers future economic conditions as part of the one year reasonable and supportable forecast period. The Bank’s loan portfolio is segmented into three pools: real estate, commercial and consumer loans. Only pools are used to segment the Bank’s loan portfolio because they share the same risk characteristics and were originated using similar underwriting standards. Loans that do not share similar risk characteristics would be evaluated on an individual basis and excluded from the collective evaluation. The real estate pool consists primarily of residential mortgage loans secured by real estate in Hawaii. These loans have fixed interest rates, loan terms of up to 30 years , and were originated using similar loan terms. The commercial loan pool consists of business loans. The consumer loan pool consists primarily of home equity lines of credit secured by real estate in Hawaii. The ACL on loans is estimated by calculating the total present value of expected cash flows discounted by the loan’s effective interest rate. The expected cash flows includes estimates of loan charge-offs and recoveries, loan prepayments, and credit utilization. The expected cash flows on the loans are adjusted using forecasts of economic variables which have a strong correlation with loan charge-offs and recoveries, prepayments, and credit utilization during the one year reasonable and supportable forecast period. After the reasonable and supportable forecast period, the historical reversion rate is used to calculate loan charge-offs and recoveries, prepayments, and credit utilization. The reversion rate is based on historical averages. Qualitative adjustments may be made to account for current conditions and forward looking events not captured in the historical information. The ACL is calculated on a loan by loan basis. If the loan’s amortized cost basis is less than the total present value of cash flows calculated using a discounted cash flow approach, the ACL is equal to the amortized cost basis minus the total present value of cash flows on the loan discounted by the loan’s effective interest rate. Charge-offs to the ACL are made when management determines that the collectability of all or a portion of a loan is doubtful and available collateral is insufficient to repay the loan. A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For loans which are considered to be collateral-dependent, the Company has elected to estimate the expected credit loss based on the fair value of the collateral less selling costs. If the fair value of the collateral less selling costs is less than the loan’s fair value, the Company records a partial charge-off to reduce the loan’s amortized cost basis for the difference between the collateral fair value less selling costs and the amortized cost basis. Loans receivable are stated at amortized cost which includes the principal amount outstanding, less the allowance for credit losses, deferred loan origination fees and costs, commitment fees, and cumulative net charge-offs. Interest income 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, unless the loans are well secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued and not collected is reversed against current period interest income. For nonaccrual 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. Accrued interest receivable on loans was $4.5 million as of March 31, 2023 and is included in Accrued interest receivable on the Consolidated Balance Sheet. The Company is required to utilize the CECL methodology to estimate expected credit losses with respect to held-to-maturity (HTM) investment securities. Since all of the Company’s HTM investment securities were issued by U.S. government agencies or U.S. government sponsored enterprises, which include the explicit and/or implicit guarantee of the U.S. government and have a long history of no credit losses, the Company did not record a credit loss on these securities. The unrealized losses on these securities were due to changes in interest rates, relative to when the securities were purchased, and are not due to decreases in the credit quality of the securities. Available for sale (AFS) investment securities in an unrealized loss position are evaluated for impairment. The Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the investment securities amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the investment security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Since all of the Company’s AFS investment securities were issued by U.S. government agencies or U.S. government sponsored enterprises and include the explicit and/or implicit guarantee of the U.S. government, the Company did not record a credit loss on these securities. The unrealized loss on AFS securities were due to changes in interest rates, relative to when the securities were purchased. Management has concluded that the long history with |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | (3) Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU 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 standard 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 was 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 adopted the standard on January 1, 2023, and applied the standard’s provisions as a cumulative-effect adjustment to retained earnings as of January 1, 2023. Upon adoption of the standard, the Company recorded a million after-tax decrease to retained earnings as of January 1, 2023. The tax effect resulted in an increase to deferred tax assets. In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU eliminates the accounting guidance for loans modified as troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the ASU requires public business entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. This ASU was effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, upon the Company’s adoption of the amendments in ASU 2016-13. The Company adopted the standard on January 1, 2023, and it did not have a material effect on the Company’s consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions to clarify that contractual sale restrictions should not be considered in the measurement of the fair value of an equity security. The Company owns stock in the Federal Reserve Bank (FRB) and in the Federal Home Loan Bank (FHLB) which is valued at historical cost which approximates fair value. Ownership of stock is a condition for services the Company receives from the FRB and FHLB. The stock is not publically traded and can only be issued, exchanged, redeemed or repurchased by the FRB and the FHLB. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023. The Company does not expect the adoption of this ASU to have a material effect on its consolidated financial statements. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents | |
Cash and Cash Equivalents | (4) Cash and Cash Equivalents The table below presents the balances of cash and cash equivalents: March 31, December 31, (Dollars in thousands) 2023 2022 Cash and due from banks $ 11,782 $ 9,722 Interest-earning deposits in other banks 73,078 30,831 Cash and cash equivalents $ 84,860 $ 40,553 Interest-earning deposits in other banks consist primarily of deposits at the Federal Reserve Bank of San Francisco. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investment Securities. | |
Investment Securities | (5) Investment Securities The amortized cost, gross unrealized gains and losses, fair value, and related ACL of investment securities are as follows: Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value ACL March 31, 2023: Available-for-sale: Mortgage-backed securities issued by U.S. government-sponsored enterprises $ 23,337 $ — $ (2,264) $ 21,073 $ — Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises 715,601 80 (113,636) 602,045 — Total $ 738,938 $ 80 $ (115,900) $ 623,118 $ — December 31, 2022: Available-for-sale: Mortgage-backed securities issued by U.S. government-sponsored enterprises $ 23,544 $ — $ (2,723) $ 20,821 $ — Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises 717,773 62 (126,751) 591,084 — Total $ 741,317 $ 62 $ (129,474) $ 611,905 $ — The amortized cost and estimated fair value of investment securities by maturity date at March 31, 2023 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 after 10 years $ 23,337 $ 21,073 Total $ 23,337 $ 21,073 Held-to-maturity: Due within 5 years $ 19 $ 19 Due after 5 years through 10 years 9 8 Due after 10 years 715,573 602,018 Total $ 715,601 $ 602,045 The Company did not sell any held-to-maturity or available-for-sale securities during the three months ended March 31, 2023 and 2022. Investment securities with amortized costs of $241.5 million and $272.8 million at March 31, 2023 and December 31, 2022, respectively, were pledged to secure deposits made by state and local governments, securities sold under agreements to repurchase, transaction clearing accounts, and Federal Reserve Bank borrowings. The Company did not have any outstanding borrowings at the Federal Reserve Bank at March 31, 2023 or December 31, 2022. Provided below is a summary of investment securities which were in an unrealized loss position at March 31, 2023 and December 31, 2022. The Company does not intend to sell securities until such time as the value recovers or the securities mature and it is not more likely than not that the Company will be required to sell the securities prior to recovery of value or the securities mature. Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Number of Unrealized Description of securities Fair Value Losses Fair Value Losses Securities Fair Value Losses (Dollars in thousands) March 31, 2023: Available-for-sale: Mortgage-backed securities issued by U.S. government-sponsored enterprises $ 4,414 $ (250) $ 16,659 $ (2,014) 4 $ 21,073 $ (2,264) Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises 92,902 (3,738) 502,468 (109,898) 150 595,370 (113,636) Total $ 97,316 $ (3,988) $ 519,127 $ (111,912) 154 $ 616,443 $ (115,900) December 31, 2022: Available-for-sale: Mortgage-backed securities issued by U.S. government sponsored enterprises $ 20,821 $ (2,723) $ — $ — 4 $ 20,821 $ (2,723) Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises 210,128 (22,209) 377,418 (104,542) 148 587,546 (126,751) Total $ 230,949 $ (24,932) $ 377,418 $ (104,542) 152 $ 608,367 $ (129,474) Mortgage-Backed Securities. The unrealized losses on the Company’s investment in mortgage-backed securities were caused by increases in market interest rates subsequent to purchase. All of the mortgage-backed securities are guaranteed by Freddie Mac or Fannie Mae, which are U.S. government-sponsored enterprises, or Ginnie Mae, which is a U.S. government agency. Since the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not intend to sell these investments until maturity, and it is not more likely than not that the Company will be required to sell such investments prior to recovery of its cost basis, the Company does not consider these investments to be other-than-temporarily impaired as of March 31, 2023 and December 31, 2022. credit losses and are widely recognized as “risk free.” Therefore, |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2023 | |
Loans Receivable and Allowance for Credit Losses | |
Loans Receivable and Allowance for Credit Losses | (6) Loans Receivable and Allowance for Credit Losses The components of loans receivable, net of allowance for credit losses (ACL) under ASC 326 as of March 31, 2023 and net of allowance for credit losses under ASC 310 as of December 31, 2022 are as follows: March 31, December 31, (Dollars in thousands) 2023 2022 Real estate loans: First mortgages: One- to four-family residential $ 1,253,020 $ 1,253,558 Multi-family residential 6,239 6,448 Construction, commercial, and other 24,587 23,903 Home equity loans and lines of credit 6,303 6,426 Total real estate loans 1,290,149 1,290,335 Other loans: Loans on deposit accounts 241 216 Consumer and other loans 8,087 8,381 Total other loans 8,328 8,597 Less: Net unearned fees and discounts (2,040) (2,136) Allowance for credit losses (5,127) (2,032) Total unearned fees, discounts, and allowance for credit losses (7,167) (4,168) Loans receivable, net $ 1,291,310 $ 1,294,764 The table below presents the activity in the allowance for credit losses by portfolio segment: Home Equity Loans and Real Commercial Lines of Consumer (Dollars in thousands) Estate Loans Credit Loans Unallocated Totals Three months ended March 31, 2023: Balance, beginning of period $ 1,263 $ 434 $ 1 $ 75 $ 259 $ 2,032 Adoption of ASU No. 2016-13 3,393 71 (1) 5 (259) 3,209 (Reversal of provision) provision for credit losses (27) (88) — 15 — (100) 4,629 417 — 95 — 5,141 Charge-offs — — — (15) — (15) Recoveries — — — 1 — 1 Net charge-offs — — — (14) — (14) Balance, end of period $ 4,629 $ 417 $ — $ 81 $ — $ 5,127 Construction, Home Commercial, Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended March 31, 2022: Balance, beginning of period $ 1,814 $ 435 $ 1 $ 89 $ 330 $ 2,669 (Reversal of provision) provision for credit losses (180) (1) — 45 (32) (168) 1,634 434 1 134 298 2,501 Charge-offs — — — (42) — (42) Recoveries — — — — — — Net charge-offs — — — (42) — (42) Balance, end of period $ 1,634 $ 434 $ 1 $ 92 $ 298 $ 2,459 The table below presents the balance in the allowance for credit losses and the recorded investment in loans, net of unearned fees and discounts, by portfolio segment, and based on impairment method as of December 31, 2022, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13: 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, 2022: Allowance for credit losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,263 434 1 75 259 2,032 Total ending allowance balance $ 1,263 $ 434 $ 1 $ 75 $ 259 $ 2,032 Loans: Ending loan balance: Individually evaluated for impairment $ 2,693 $ — $ 16 $ — $ 6 $ 2,715 Collectively evaluated for impairment 1,255,300 23,775 6,411 8,595 — 1,294,081 Total ending loan balance $ 1,257,993 $ 23,775 $ 6,427 $ 8,595 $ 6 $ 1,296,796 The table below presents the balance of impaired loans individually evaluated for impairment by class of loans as of December 31, 2022, in accordance with ASC 310 prior to the adoption of ASU 2016-13: Unpaid Recorded Principal (Dollars in thousands) Investment Balance December 31, 2022: With no related allowance recorded: One- to four-family residential mortgages $ 2,693 $ 3,209 Home equity loans and lines of credit 16 30 Consumer Loans 6 6 Total $ 2,715 $ 3,245 The table below presents the average recorded investment and interest income recognized on impaired loans by class of loans as of March 31, 2022, in accordance with ASC 310 prior to the adoption of ASU 2016-13: For the Three Months Ended March 31, 2022 Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: One- to four-family residential mortgages $ 3,782 $ 7 Home equity loans and lines of credit 18 — Total $ 3,800 $ 7 There were no loans individually evaluated for impairment with a related allowance for credit loss as of December 31, 2022. At December 31, 2022, loans individually evaluated for impairment do not have an allocated allowance for credit losses because they are written down to fair value at the time of impairment. At December 31, 2022, an impaired loan would also not have an allocated allowance if the value of the property securing the loan, less the cost to sell the property, is greater than the loan balance. The Company primarily uses the aging of loans and accrual status to monitor the credit quality of its loan portfolio. The table below presents by credit quality indicator, loan class and year of origination, the amortized cost basis of the Company’s loans as of March 31, 2023. Revolving Loans Amortized Cost of Term Loans by Origination Year Amortized (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Cost Basis Total March 31, 2023: Commercial 30 - 59 days past due $ — $ — $ — $ — $ — $ — $ — $ — 60 - 89 days past due — — — — — — — — 90 days or more past due — — — — — — — — Loans not past due — 396 4,952 — 228 1,171 1,218 7,965 Total Commercial — 396 4,952 — 228 1,171 1,218 7,965 Consumer 30 - 59 days past due 1 — — — — — — 1 60 - 89 days past due — 3 — — — — — 3 90 days or more past due — — — — — — — — Loans not past due 78 113 39 88 29 48 5,324 5,719 Total Consumer 79 116 39 88 29 48 5,324 5,723 Real Estate 30 - 59 days past due — — — — — 874 — 874 60 - 89 days past due — — — — — 51 — 51 90 days or more past due — — — — 140 827 — 967 Loans not past due 19,531 132,417 290,917 191,102 95,150 551,740 — 1,280,857 Total Real Estate 19,531 132,417 290,917 191,102 95,290 553,492 — 1,282,749 Total $ 19,610 $ 132,929 $ 295,908 $ 191,190 $ 95,547 $ 554,711 $ 6,542 $ 1,296,437 The Company did not have any revolving loans that converted to term loans during the three months ended March 31, 2023. The table below presents the aging of loans and accrual status by class of loans, net of unearned fees and discounts. Loans with a formal loan payment deferral plan in place are not considered contractually past due or delinquent if the borrower is in compliance with the loan payment deferral plan. Loans 90 Days or More 30 - 59 60 - 89 90 Days or Past Due Days Past Days Past More Total Past Loans Not Total Nonaccrual and Still (Dollars in thousands) Due Due Past Due Due Past Due Loans Loans Accruing March 31, 2023: One- to four-family residential mortgages $ 859 $ 51 $ 967 $ 1,877 $ 1,249,239 $ 1,251,116 $ 2,357 $ — Multi-family residential mortgages — — — — 6,230 6,230 — — Construction, commercial, and other mortgages — — — — 24,456 24,456 — — Home equity loans and lines of credit 15 — — 15 6,290 6,305 15 — Loans on deposit accounts — — — — 241 241 — — Consumer and other 1 3 — 4 8,085 8,089 — — Total $ 875 $ 54 $ 967 $ 1,896 $ 1,294,541 $ 1,296,437 $ 2,372 $ — December 31, 2022: One- to four-family residential mortgages $ — $ 409 $ 559 $ 968 $ 1,250,586 $ 1,251,554 $ 2,279 $ — Multi-family residential mortgages — — — — 6,439 6,439 — — Construction, commercial, and other mortgages — — — — 23,775 23,775 — — Home equity loans and lines of credit — — — — 6,427 6,427 16 — Loans on deposit accounts — — — — 217 217 — — Consumer and other 6 — 6 12 8,372 8,384 6 — Total $ 6 $ 409 $ 565 $ 980 $ 1,295,816 $ 1,296,796 $ 2,301 $ — The table below presents the amortized cost basis of loans on nonaccrual status as of March 31, 2023 and December 31, 2022. March 31, 2023 December 31, 2022 (Dollars in thousands) Nonaccrual Loans with a related ACL Nonaccrual loans without a related ACL Total Nonaccrual Loans Total Nonaccrual Loans Real Estate $ 878 $ 1,494 $ 2,372 $ 2,295 Consumer — — — 6 Commercial — — — — Total Nonaccrual Loans and Leases $ 878 $ 1,494 $ 2,372 $ 2,301 The Company does not recognize interest income while loans are on nonaccrual status. All payments received while on nonaccrual status are applied against the principal balance of the loan. 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 amortized cost basis of collateral dependent loans was $967,000 and $559,000 at March 31, 2023 and December 31, 2022, respectively. These loans were collateralized by residential real estate in Hawaii. As of March 31, 2023 and December 31, 2022, the fair value of the collateral less selling costs of these collateral dependent loans exceeded the amortized cost basis. There was no ACL on collateral dependent loans. There were no loans modified during the three months ended March 31, 2023 or 2022. Since the beginning of the year, there has not been a significant increase in loan delinquencies, significant changes in deposits or significant drawdowns on any lines of credit. We do not have any commercial loans to hotels, businesses in the transportation industry, restaurants or retail establishments. The Company had no real estate owned as of March 31, 2023 or December 31, 2022. There were in the process of foreclosure at March 31, 2023. There were 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 During the three months ended March 31, 2023 and 2022, the Company sold mortgage loans held for sale with principal balances of $360,000 and $2.0 million, respectively, and recognized gains of $1,000 and $18,000 , respectively. The Company had The Company serviced loans for others with principal balances of $35.5 million at March 31, 2023 and $36.0 million at December 31, 2022. Of these amounts, million of loan balances relate to securitizations for which the Company continues to hold the related mortgage-backed securities at March 31, 2023 and December 31, 2022, respectively. The amount of contractually specified servicing fees earned for the three months ended March 31, 2023 and 2022 was , respectively. The fees are reported in service and other fees in the Consolidated Statements of Income. |
Advances from the Federal Home
Advances from the Federal Home Loan Bank | 3 Months Ended |
Mar. 31, 2023 | |
Advances from the Federal Home Loan Bank | |
Advances from the Federal Home Loan Bank | (7) 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 March 31, 2023 and December 31, 2022, our credit limit with the FHLB of Des Moines was equal to 45% of Territorial Savings Bank’s total assets and we had the capacity to borrow an additional $630.1 million and $769.1 million, respectively. Advances outstanding consisted of the following: March 31, 2023 December 31, 2022 Weighted Weighted Average Average (Dollars in thousands) Amount Rate Amount Rate Due within one year $ 24,000 1.27 % $ 24,000 1.27 % Due over 1 year to 2 years 82,000 1.40 82,000 1.40 Due over 2 years to 3 years 25,000 1.58 25,000 1.58 Due over 3 years to 4 years 40,000 3.70 10,000 1.97 Due over 4 years to 5 years 35,000 4.22 — — Due over 5 years to 6 years 40,000 4.41 — — Total $ 246,000 2.67 % $ 141,000 1.45 % |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 3 Months Ended |
Mar. 31, 2023 | |
Securities Sold Under Agreements to Repurchase | |
Securities Sold Under Agreements to Repurchase | (8) Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase are treated as financings and the obligations to repurchase the identical securities sold are reflected as a liability with the securities collateralizing the agreements classified as an asset. Securities sold under agreements to repurchase are summarized as follows: March 31, 2023 December 31, 2022 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: Over 1 year to 2 years $ 10,000 1.81 % $ 5,000 1.88 % Over 2 years to 3 years — — 5,000 1.73 Total $ 10,000 1.81 % $ 10,000 1.81 % Below is a summary comparing the carrying value and fair value of securities pledged to secure repurchase agreements, the repurchase liability, and the amount at risk at March 31, 2023. 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 agencies or U.S. government-sponsored enterprises. The repurchase liability cannot exceed of the fair value of securities pledged. In the event of a decline in the fair value of securities pledged to less than the required amount due to market conditions or principal repayments, the Company is obligated to pledge additional securities or other suitable collateral to cure the deficiency. Weighted Carrying Fair Average Value of Value of Repurchase Amount Months to (Dollars in thousands) Securities Securities Liability at Risk Maturity Maturing: Over 90 days $ 13,373 $ 11,355 $ 10,000 $ 3,373 21 |
Offsetting of Financial Liabili
Offsetting of Financial Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Offsetting of Financial Liabilities | |
Offsetting of Financial Liabilities | (9) Offsetting of Financial Liabilities Securities sold under agreements to repurchase are subject to a right of offset in the event of default. See Note 8, Securities Sold Under Agreements to Repurchase, for additional information. Net Amount of Gross Amount Not Offset in the Gross Amount Gross Amount Liabilities Balance Sheet of Recognized Offset in the Presented in the Financial Cash Collateral (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Pledged Net Amount March 31, 2023: Securities sold under agreements to repurchase $ 10,000 $ — $ 10,000 $ 10,000 $ — $ — December 31, 2022: Securities sold under agreements to repurchase $ 10,000 $ — $ 10,000 $ 10,000 $ — $ — |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 3 Months Ended |
Mar. 31, 2023 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | (10) Employee Stock Ownership Plan Effective January 1, 2009, Territorial Savings Bank adopted an Employee Stock Ownership Plan (ESOP) for eligible employees. The ESOP borrowed , of the total number of shares issued by the Company in its initial public offering. The shares were acquired at a price of The loan is secured by the shares purchased with the loan proceeds and will be repaid by the ESOP over the 20-year term of the loan with funds from Territorial Savings Bank’s contributions to the ESOP and dividends payable on the shares. The interest rate on the ESOP loan is an adjustable rate equal to the prime rate, as published in The Wall Street Journal . The interest rate adjusts annually and will be the prime rate on the first business day of the calendar year. Shares purchased by the ESOP are held by a trustee in an unallocated suspense account, and shares are released annually from the suspense account on a pro-rata basis as principal and interest payments are made by the ESOP to the Company. The trustee allocates the shares released among participants on the basis of each participant’s proportional share of compensation relative to all participants. As shares are committed to be released from the suspense account, Territorial Savings Bank reports compensation expense based on the average fair value of shares released with a corresponding credit to stockholders’ equity. The shares committed to be released are considered outstanding for earnings per share computations. Compensation expense recognized for the three months ended March 31, 2023 and 2022 amounted to , respectively. Shares held by the ESOP trust were as follows: March 31, December 31, 2023 2022 Allocated shares 595,708 583,474 Unearned shares 281,364 293,598 Total ESOP shares 877,072 877,072 Fair value of unearned shares, in thousands $ 5,433 $ 7,049 The ESOP restoration plan is a nonqualified plan that provides supplemental benefits to certain executives who are prevented from receiving the full benefits contemplated by the ESOP’s benefit formula. The supplemental cash payments consist of payments representing shares that cannot be allocated to the participants under the ESOP due to IRS limitations imposed on tax-qualified plans. We accrue for these benefits over the period during which employees provide services to earn these benefits. For the three months ended March 31, 2023 and 2022, we accrued , respectively, for the ESOP restoration plan. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
2010 Equity Incentive Plan | |
Share-Based Compensation | |
Share-Based Compensation | (11) Share-Based Compensation The shareholders of Territorial Bancorp Inc. adopted the 2010 Equity Incentive Plan and the 2019 Equity Incentive Plan. These plans provide for the award of stock options and restricted stock to key officers and directors. In accordance with the Compensation – Stock Compensation topic of the FASB ASC, the cost of the equity incentive plans is based on the fair value of the awards on the grant date. The fair value of time-based restricted stock is based on the closing price of the Company’s stock on the grant date. The fair value of performance-based stock that will vest based on a performance condition is based on the closing price of the Company’s stock on the date of grant. The fair value of performance-based restricted stock that will vest on a market condition is based on a Monte Carlo valuation of the Company’s stock on the date of grant. The fair value of time-based 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. No new awards can be made under the 2010 Equity Plan, but awards previously made can continue to vest. There are 144,630 remaining shares available for new awards under the 2019 Equity Plan. 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 Consolidated Statements 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: Three Months Ended March 31, (In thousands) 2023 2022 Compensation expense $ (42) $ 134 Income tax benefit (11) 37 Share-based compensation expense and the income tax benefit had credit balances during the three months ended March 31, 2023. The credit balances occurred when the number of performance-based restricted stock units (PRSUs), which are based on a performance condition, decreased because the Company’s three-year return on average equity declined in comparison to a peer group of banks. Stock Options The table below presents the stock option activity for the three months ended March 31, 2022: Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2021 3,085 $ 23.62 0.67 $ 5 Granted — — — — Exercised — — — — Forfeited — — — — Expired — — — — Options outstanding at March 31, 2022 3,085 $ 23.62 0.42 $ 1 There were no options exercised or vested during the three months ended March 31, 2022. There were options outstanding during the three months ended March 31, 2023. As of March 31, 2023, the Company had Restricted Stock Restricted stock awards are accounted for as fixed grants using the fair value of the Company’s stock at the time of grant. Unvested restricted stock may not be disposed of or transferred during the vesting period. Restricted stock carries the right to receive dividends, although dividends attributable to restricted stock are retained by the Company until the shares vest, at which time they are paid to the award recipient. Unvested restricted stock that is time-based contain nonforfeitable dividend rights. Accrued dividends on restricted stock that do not vest based on performance or market conditions are forfeited. The table below presents the time-based restricted stock activity: Weighted Time-Based Average Grant Restricted Date Fair Stock Value Unvested at December 31, 2022 23,664 $ 24.15 Granted — — Vested 4,540 21.05 Forfeited — — Unvested at March 31, 2023 19,124 $ 24.89 Unvested at December 31, 2021 23,208 $ 24.61 Granted — — Vested 8,001 23.75 Forfeited — — Unvested at March 31, 2022 15,207 $ 25.06 As of March 31, 2023, the Company had $288,000 of unrecognized compensation costs related to time-based restricted stock. 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, 2022 43,557 $ 23.63 Granted — — Vested — — Forfeited 16,348 21.05 Unvested at March 31, 2023 27,209 $ 25.18 Unvested at December 31, 2021 41,583 $ 24.68 Granted — — Vested 7,670 27.30 Forfeited 4,768 27.30 Unvested at March 31, 2022 29,145 $ 23.56 The fair value of these PRSUs is based on the fair value of the Company’s stock on the date of grant. As of March 31, 2023, the Company had $73,000 of unrecognized compensation costs related to these PRSUs. Performance will be measured over a three-year performance period and will be cliff vested. The performance condition is measured quarterly by comparing the Company’s three-year return on average equity to a peer group of banks. The Company’s percentile ranking in the peer group is used to adjust the number of PRSUs that are expected to vest. 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, 2022 10,889 $ 24.04 Granted — — Vested — — Forfeited 4,087 22.16 Unvested at March 31, 2023 6,802 $ 25.16 Unvested at December 31, 2021 10,396 $ 24.03 Granted — — Vested — — Forfeited 3,110 24.45 Unvested at March 31, 2022 7,286 $ 23.85 As of March 31, 2023, the Company had $53,000 of unrecognized compensation costs related to the PRSUs that are based on a market condition. The market value of PRSUs that will vest on a market condition is determined by a Monte Carlo valuation of the Company’s stock as of the grant date. Performance will be measured over a three-year performance period and will be cliff vested. The market condition is measured quarterly by comparing the Company’s three-year average total stock return to a peer group of other banks. The Company’s percentile ranking in the peer group determines how many PRSUs will vest. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share | |
Earnings Per Share | (12) Earnings Per Share Holders of unvested restricted stock accrue dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Unvested restricted stock awards that are time-based contain nonforfeitable rights to dividends or dividend equivalents and 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. Unvested restricted stock awards that vest based on performance or market conditions are not considered to be participating securities in the earnings per share calculation because accrued dividends on shares that do not vest are forfeited. The table below presents the information used to compute basic and diluted earnings per share: Three Months Ended March 31, (Dollars in thousands, except per share data) 2023 2022 Net income $ 2,316 $ 4,710 Income allocated to participating securities (19) (24) Net income available to common shareholders $ 2,297 $ 4,686 Weighted-average number of shares used in: Basic earnings per share 8,774,634 8,980,135 Dilutive common stock equivalents: Stock options and restricted stock units 32,110 34,319 Diluted earnings per share 8,806,744 9,014,454 Net income per common share, basic $ 0.26 $ 0.52 Net income per common share, diluted $ 0.26 $ 0.52 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | (13) Accumulated 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 Three months ended March 31, 2023 Balances at beginning of period $ 5,746 $ 1,998 $ 7,744 Other comprehensive income, net of taxes — (337) (337) Net current period other comprehensive income — (337) (337) Balances at end of period $ 5,746 $ 1,661 $ 7,407 Three months ended March 31, 2022 Balances at beginning of period $ 5,524 $ — $ 5,524 Other comprehensive loss, net of taxes — 103 103 Net current period other comprehensive loss — 103 103 Balances at end of period $ 5,524 $ 103 $ 5,627 The table below presents the tax effect on each component of accumulated other comprehensive loss: Three Months Ended March 31, 2023 2022 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain) loss on securities $ (459) $ 122 $ (337) $ 141 $ (38) $ 103 Total $ (459) $ 122 $ (337) $ 141 $ (38) $ 103 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
Revenue Recognition | |
Revenue Recognition | (14) Revenue Recognition The Company’s contracts with customers are generally short-term in nature, with cycles of one year or less. These can range from an immediate term for services such as wire transfers, foreign currency exchanges, and cashier’s check purchases, to several days for services such as processing annuity and mutual fund sales. Some contracts may be of an ongoing nature, such as providing deposit account services, including ATM access, check processing, account analysis, and check ordering. However, provision of an assessable service and payment for such service is usually concurrent or closely timed. Contracts related to financial instruments, such as loans, investments, and debt, are excluded from the scope of this reporting requirement. After analyzing the Company’s revenue sources, including the amount of revenue received, the timing of services rendered, and the timing of payment for these services, the Company has determined that the rendering of services and the payment for such services are generally closely matched. Any differences are not material to the Company’s Consolidated Financial Statements. Accordingly, the Company generally records income when payment for services is received. Revenue from contracts with customers is reported in service and other fees 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 and (Dollars in thousands) Other Fees Other Total Three months ended March 31, 2023 Revenue from contracts with customers $ 275 $ 42 $ 317 Other revenue 35 33 68 Total $ 310 $ 75 $ 385 Three months ended March 31, 2022 Revenue from contracts with customers $ 310 $ 44 $ 354 Other revenue 31 1,053 1,084 Total $ 341 $ 1,097 $ 1,438 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases | |
Leases | (15) Leases The table below presents lease costs and other information for the periods indicated: Three Months Ended March 31, (Dollars in thousands) 2023 2022 Lease costs: Operating lease costs $ 705 $ 762 Short-term lease costs 104 15 Variable lease costs 43 38 Total lease costs $ 852 $ 815 Cash paid for amounts included in measurement of lease liabilities $ 769 $ 763 ROU assets obtained in exchange for new operating lease liabilities $ 118 $ 4,798 At March 31, 2023, future minimum rental commitments under noncancellable operating leases are as follows: (Dollars in thousands) 2023 $ 2,216 2024 2,757 2025 2,137 2026 1,974 2027 1,896 Thereafter 10,995 Total 21,975 Less lease incentives to be received in 2023 (4,996) Less present value discount (2,259) Present value of leases $ 14,720 The table below presents other lease related information: March 31, March 31, 2023 2022 Weighted-average remaining lease term (years) 8.80 8.92 Weighted-average discount rate 2.09 % 1.90 % |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value | |
Fair Value | (16) Fair Value In accordance with the Fair Value Measurements and Disclosures topic of the FASB ASC, the Company groups its financial assets and liabilities measured or disclosed 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 available 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. 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. The fair value inputs are considered Level 2 inputs. Interest rate contracts that are classified as assets are included with prepaid expenses and other assets on the Consolidated Balance Sheet while interest rate contracts that are classified as liabilities are included with accounts payable and accrued expenses. The estimated fair values of the Company’s financial instruments are as follows: Carrying Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 March 31, 2023 Assets Cash and cash equivalents $ 84,860 $ 84,860 $ 84,860 $ — $ — Investment securities available for sale 21,073 21,073 — 21,073 — Investment securities held to maturity 715,601 602,045 — 602,045 — Loans receivable, net 1,291,310 1,159,417 — — 1,159,417 FHLB stock 12,444 12,444 — 12,444 — FRB stock 3,177 3,177 — 3,177 — Accrued interest receivable 6,128 6,128 100 1,554 4,474 Liabilities Deposits 1,661,973 1,655,368 — 1,211,525 443,843 Advances from the Federal Home Loan Bank 246,000 239,598 — 239,598 — Securities sold under agreements to repurchase 10,000 9,530 — 9,530 — Accrued interest payable 1,012 1,012 — 36 976 December 31, 2022 Assets Cash and cash equivalents $ 40,553 $ 40,553 $ 40,553 $ — $ — Investment securities available for sale 20,821 20,821 — 20,821 — Investment securities held to maturity 717,773 591,084 — 591,084 — Loans receivable, net 1,294,764 1,180,840 — — 1,180,840 FHLB stock 8,197 8,197 — 8,197 — FRB stock 3,170 3,170 — 3,170 — Accrued interest receivable 6,115 6,115 23 1,497 4,595 Liabilities Deposits 1,716,152 1,708,612 — 1,286,465 422,147 Advances from the Federal Home Loan Bank 141,000 133,145 — 133,145 — Securities sold under agreements to repurchase 10,000 9,440 — 9,440 — Accrued interest payable 701 701 — 33 668 At March 31, 2023 and December 31, 2022, neither the commitment fees received on commitments to extend credit nor the fair value thereof was material to the Consolidated Financial Statements of the Company. The table below presents the balance of assets and liabilities measured at fair value on a recurring basis: (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2023 Investment securities available for sale $ — $ 21,073 $ — $ 21,073 December 31, 2022 Investment securities available for sale — 20,821 — 20,821 There were no assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2023 or December 31, 2022. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events | |
Subsequent Events | (18) Subsequent Events On April 27, 2023, the Board of Directors of Territorial Bancorp Inc. declared a quarterly cash dividend of $0.23 per share of common stock. The dividend is expected to be paid on May 25, 2023 to stockholders of record as of May 11, 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | (a) Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of Territorial Bancorp Inc. have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited interim condensed consolidated financial statements and notes should be read in conjunction with the Company’s consolidated financial statements and notes thereto filed as part of the Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments necessary for a fair presentation have been made and consist only of normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. |
Allowance of Credit Losses (ACL) on Loans and Securities | (b) Allowance of Credit Losses (ACL) on Loans and Securities The current expected credit losses (CECL) accounting standard requires an estimate of the credit losses expected over the life of the financial instrument. CECL replaces the incurred loss approach that delayed the recognition of a credit loss until it was probable and a loss event occurred. The estimate of expected credit losses is based on information about past events, current conditions and reasonable and supportable forecasts that affect the collectability of financial instruments. Historical loss experience is generally the starting point for estimating expected credit losses. The Company considers whether the historical loss experience should be adjusted for asset specific risk characteristics or current conditions at the reporting date that did not exist over the historical reporting period. These qualitative adjustment can include changes in the economy, loan underwriting standards, and delinquency trends. The Company then considers future economic conditions as part of the one year reasonable and supportable forecast period. The Bank’s loan portfolio is segmented into three pools: real estate, commercial and consumer loans. Only pools are used to segment the Bank’s loan portfolio because they share the same risk characteristics and were originated using similar underwriting standards. Loans that do not share similar risk characteristics would be evaluated on an individual basis and excluded from the collective evaluation. The real estate pool consists primarily of residential mortgage loans secured by real estate in Hawaii. These loans have fixed interest rates, loan terms of up to 30 years , and were originated using similar loan terms. The commercial loan pool consists of business loans. The consumer loan pool consists primarily of home equity lines of credit secured by real estate in Hawaii. The ACL on loans is estimated by calculating the total present value of expected cash flows discounted by the loan’s effective interest rate. The expected cash flows includes estimates of loan charge-offs and recoveries, loan prepayments, and credit utilization. The expected cash flows on the loans are adjusted using forecasts of economic variables which have a strong correlation with loan charge-offs and recoveries, prepayments, and credit utilization during the one year reasonable and supportable forecast period. After the reasonable and supportable forecast period, the historical reversion rate is used to calculate loan charge-offs and recoveries, prepayments, and credit utilization. The reversion rate is based on historical averages. Qualitative adjustments may be made to account for current conditions and forward looking events not captured in the historical information. The ACL is calculated on a loan by loan basis. If the loan’s amortized cost basis is less than the total present value of cash flows calculated using a discounted cash flow approach, the ACL is equal to the amortized cost basis minus the total present value of cash flows on the loan discounted by the loan’s effective interest rate. Charge-offs to the ACL are made when management determines that the collectability of all or a portion of a loan is doubtful and available collateral is insufficient to repay the loan. A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For loans which are considered to be collateral-dependent, the Company has elected to estimate the expected credit loss based on the fair value of the collateral less selling costs. If the fair value of the collateral less selling costs is less than the loan’s fair value, the Company records a partial charge-off to reduce the loan’s amortized cost basis for the difference between the collateral fair value less selling costs and the amortized cost basis. Loans receivable are stated at amortized cost which includes the principal amount outstanding, less the allowance for credit losses, deferred loan origination fees and costs, commitment fees, and cumulative net charge-offs. Interest income 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, unless the loans are well secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued and not collected is reversed against current period interest income. For nonaccrual 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. Accrued interest receivable on loans was $4.5 million as of March 31, 2023 and is included in Accrued interest receivable on the Consolidated Balance Sheet. The Company is required to utilize the CECL methodology to estimate expected credit losses with respect to held-to-maturity (HTM) investment securities. Since all of the Company’s HTM investment securities were issued by U.S. government agencies or U.S. government sponsored enterprises, which include the explicit and/or implicit guarantee of the U.S. government and have a long history of no credit losses, the Company did not record a credit loss on these securities. The unrealized losses on these securities were due to changes in interest rates, relative to when the securities were purchased, and are not due to decreases in the credit quality of the securities. Available for sale (AFS) investment securities in an unrealized loss position are evaluated for impairment. The Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the investment securities amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the investment security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Since all of the Company’s AFS investment securities were issued by U.S. government agencies or U.S. government sponsored enterprises and include the explicit and/or implicit guarantee of the U.S. government, the Company did not record a credit loss on these securities. The unrealized loss on AFS securities were due to changes in interest rates, relative to when the securities were purchased. Management has concluded that the long history with |
Recently Issued Accounting Pronouncements | In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU 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 standard 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 was 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 adopted the standard on January 1, 2023, and applied the standard’s provisions as a cumulative-effect adjustment to retained earnings as of January 1, 2023. Upon adoption of the standard, the Company recorded a million after-tax decrease to retained earnings as of January 1, 2023. The tax effect resulted in an increase to deferred tax assets. In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU eliminates the accounting guidance for loans modified as troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the ASU requires public business entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. This ASU was effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, upon the Company’s adoption of the amendments in ASU 2016-13. The Company adopted the standard on January 1, 2023, and it did not have a material effect on the Company’s consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions to clarify that contractual sale restrictions should not be considered in the measurement of the fair value of an equity security. The Company owns stock in the Federal Reserve Bank (FRB) and in the Federal Home Loan Bank (FHLB) which is valued at historical cost which approximates fair value. Ownership of stock is a condition for services the Company receives from the FRB and FHLB. The stock is not publically traded and can only be issued, exchanged, redeemed or repurchased by the FRB and the FHLB. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023. The Company does not expect the adoption of this ASU to have a material effect on its consolidated financial statements. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents | |
Schedule of balances of cash and cash equivalents | March 31, December 31, (Dollars in thousands) 2023 2022 Cash and due from banks $ 11,782 $ 9,722 Interest-earning deposits in other banks 73,078 30,831 Cash and cash equivalents $ 84,860 $ 40,553 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investment Securities. | |
Schedule of amortized cost and fair values of investment securities | Amortized Gross Unrealized Estimated (Dollars in thousands) Cost Gains Losses Fair Value ACL March 31, 2023: Available-for-sale: Mortgage-backed securities issued by U.S. government-sponsored enterprises $ 23,337 $ — $ (2,264) $ 21,073 $ — Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises 715,601 80 (113,636) 602,045 — Total $ 738,938 $ 80 $ (115,900) $ 623,118 $ — December 31, 2022: Available-for-sale: Mortgage-backed securities issued by U.S. government-sponsored enterprises $ 23,544 $ — $ (2,723) $ 20,821 $ — Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises 717,773 62 (126,751) 591,084 — Total $ 741,317 $ 62 $ (129,474) $ 611,905 $ — |
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 after 10 years $ 23,337 $ 21,073 Total $ 23,337 $ 21,073 Held-to-maturity: Due within 5 years $ 19 $ 19 Due after 5 years through 10 years 9 8 Due after 10 years 715,573 602,018 Total $ 715,601 $ 602,045 |
Summary of investment securities in an unrealized loss position | Less Than 12 Months 12 Months or Longer Total Unrealized Unrealized Number of Unrealized Description of securities Fair Value Losses Fair Value Losses Securities Fair Value Losses (Dollars in thousands) March 31, 2023: Available-for-sale: Mortgage-backed securities issued by U.S. government-sponsored enterprises $ 4,414 $ (250) $ 16,659 $ (2,014) 4 $ 21,073 $ (2,264) Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises 92,902 (3,738) 502,468 (109,898) 150 595,370 (113,636) Total $ 97,316 $ (3,988) $ 519,127 $ (111,912) 154 $ 616,443 $ (115,900) December 31, 2022: Available-for-sale: Mortgage-backed securities issued by U.S. government sponsored enterprises $ 20,821 $ (2,723) $ — $ — 4 $ 20,821 $ (2,723) Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises 210,128 (22,209) 377,418 (104,542) 148 587,546 (126,751) Total $ 230,949 $ (24,932) $ 377,418 $ (104,542) 152 $ 608,367 $ (129,474) |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Loans Receivable and Allowance for Credit Losses | |
Schedule of components of loans receivable | March 31, December 31, (Dollars in thousands) 2023 2022 Real estate loans: First mortgages: One- to four-family residential $ 1,253,020 $ 1,253,558 Multi-family residential 6,239 6,448 Construction, commercial, and other 24,587 23,903 Home equity loans and lines of credit 6,303 6,426 Total real estate loans 1,290,149 1,290,335 Other loans: Loans on deposit accounts 241 216 Consumer and other loans 8,087 8,381 Total other loans 8,328 8,597 Less: Net unearned fees and discounts (2,040) (2,136) Allowance for credit losses (5,127) (2,032) Total unearned fees, discounts, and allowance for credit losses (7,167) (4,168) Loans receivable, net $ 1,291,310 $ 1,294,764 |
Schedule of activity in allowance for loan losses on loans receivable and by portfolio segment | Home Equity Loans and Real Commercial Lines of Consumer (Dollars in thousands) Estate Loans Credit Loans Unallocated Totals Three months ended March 31, 2023: Balance, beginning of period $ 1,263 $ 434 $ 1 $ 75 $ 259 $ 2,032 Adoption of ASU No. 2016-13 3,393 71 (1) 5 (259) 3,209 (Reversal of provision) provision for credit losses (27) (88) — 15 — (100) 4,629 417 — 95 — 5,141 Charge-offs — — — (15) — (15) Recoveries — — — 1 — 1 Net charge-offs — — — (14) — (14) Balance, end of period $ 4,629 $ 417 $ — $ 81 $ — $ 5,127 Construction, Home Commercial, Equity and Other Loans and Residential Mortgage Lines of Consumer (Dollars in thousands) Mortgage Loans Credit and Other Unallocated Totals Three months ended March 31, 2022: Balance, beginning of period $ 1,814 $ 435 $ 1 $ 89 $ 330 $ 2,669 (Reversal of provision) provision for credit losses (180) (1) — 45 (32) (168) 1,634 434 1 134 298 2,501 Charge-offs — — — (42) — (42) Recoveries — — — — — — Net charge-offs — — — (42) — (42) Balance, end of period $ 1,634 $ 434 $ 1 $ 92 $ 298 $ 2,459 |
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, 2022: Allowance for credit losses: Ending allowance balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,263 434 1 75 259 2,032 Total ending allowance balance $ 1,263 $ 434 $ 1 $ 75 $ 259 $ 2,032 Loans: Ending loan balance: Individually evaluated for impairment $ 2,693 $ — $ 16 $ — $ 6 $ 2,715 Collectively evaluated for impairment 1,255,300 23,775 6,411 8,595 — 1,294,081 Total ending loan balance $ 1,257,993 $ 23,775 $ 6,427 $ 8,595 $ 6 $ 1,296,796 |
Schedule of balance of impaired loans individually evaluated for impairment by class of loans | Unpaid Recorded Principal (Dollars in thousands) Investment Balance December 31, 2022: With no related allowance recorded: One- to four-family residential mortgages $ 2,693 $ 3,209 Home equity loans and lines of credit 16 30 Consumer Loans 6 6 Total $ 2,715 $ 3,245 |
Schedule of average recorded investment and interest income recognized on impaired loans by class of loans | For the Three Months Ended March 31, 2022 Average Interest Recorded Income (Dollars in thousands) Investment Recognized With no related allowance recorded: One- to four-family residential mortgages $ 3,782 $ 7 Home equity loans and lines of credit 18 — Total $ 3,800 $ 7 |
Schedule of credit quality indicator by loan class and year. | Revolving Loans Amortized Cost of Term Loans by Origination Year Amortized (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Cost Basis Total March 31, 2023: Commercial 30 - 59 days past due $ — $ — $ — $ — $ — $ — $ — $ — 60 - 89 days past due — — — — — — — — 90 days or more past due — — — — — — — — Loans not past due — 396 4,952 — 228 1,171 1,218 7,965 Total Commercial — 396 4,952 — 228 1,171 1,218 7,965 Consumer 30 - 59 days past due 1 — — — — — — 1 60 - 89 days past due — 3 — — — — — 3 90 days or more past due — — — — — — — — Loans not past due 78 113 39 88 29 48 5,324 5,719 Total Consumer 79 116 39 88 29 48 5,324 5,723 Real Estate 30 - 59 days past due — — — — — 874 — 874 60 - 89 days past due — — — — — 51 — 51 90 days or more past due — — — — 140 827 — 967 Loans not past due 19,531 132,417 290,917 191,102 95,150 551,740 — 1,280,857 Total Real Estate 19,531 132,417 290,917 191,102 95,290 553,492 — 1,282,749 Total $ 19,610 $ 132,929 $ 295,908 $ 191,190 $ 95,547 $ 554,711 $ 6,542 $ 1,296,437 |
Schedule of aging of loans and accrual status by class of loans | Loans 90 Days or More 30 - 59 60 - 89 90 Days or Past Due Days Past Days Past More Total Past Loans Not Total Nonaccrual and Still (Dollars in thousands) Due Due Past Due Due Past Due Loans Loans Accruing March 31, 2023: One- to four-family residential mortgages $ 859 $ 51 $ 967 $ 1,877 $ 1,249,239 $ 1,251,116 $ 2,357 $ — Multi-family residential mortgages — — — — 6,230 6,230 — — Construction, commercial, and other mortgages — — — — 24,456 24,456 — — Home equity loans and lines of credit 15 — — 15 6,290 6,305 15 — Loans on deposit accounts — — — — 241 241 — — Consumer and other 1 3 — 4 8,085 8,089 — — Total $ 875 $ 54 $ 967 $ 1,896 $ 1,294,541 $ 1,296,437 $ 2,372 $ — December 31, 2022: One- to four-family residential mortgages $ — $ 409 $ 559 $ 968 $ 1,250,586 $ 1,251,554 $ 2,279 $ — Multi-family residential mortgages — — — — 6,439 6,439 — — Construction, commercial, and other mortgages — — — — 23,775 23,775 — — Home equity loans and lines of credit — — — — 6,427 6,427 16 — Loans on deposit accounts — — — — 217 217 — — Consumer and other 6 — 6 12 8,372 8,384 6 — Total $ 6 $ 409 $ 565 $ 980 $ 1,295,816 $ 1,296,796 $ 2,301 $ — |
Schedule of amortized cost basis of loans on nonaccrual status | March 31, 2023 December 31, 2022 (Dollars in thousands) Nonaccrual Loans with a related ACL Nonaccrual loans without a related ACL Total Nonaccrual Loans Total Nonaccrual Loans Real Estate $ 878 $ 1,494 $ 2,372 $ 2,295 Consumer — — — 6 Commercial — — — — Total Nonaccrual Loans and Leases $ 878 $ 1,494 $ 2,372 $ 2,301 |
Advances from the Federal Hom_2
Advances from the Federal Home Loan Bank (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Advances from the Federal Home Loan Bank | |
Schedule of advances outstanding | March 31, 2023 December 31, 2022 Weighted Weighted Average Average (Dollars in thousands) Amount Rate Amount Rate Due within one year $ 24,000 1.27 % $ 24,000 1.27 % Due over 1 year to 2 years 82,000 1.40 82,000 1.40 Due over 2 years to 3 years 25,000 1.58 25,000 1.58 Due over 3 years to 4 years 40,000 3.70 10,000 1.97 Due over 4 years to 5 years 35,000 4.22 — — Due over 5 years to 6 years 40,000 4.41 — — Total $ 246,000 2.67 % $ 141,000 1.45 % |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Securities Sold Under Agreements to Repurchase | |
Summary of securities sold under agreements to repurchase | March 31, 2023 December 31, 2022 Weighted Weighted Repurchase Average Repurchase Average (Dollars in thousands) Liability Rate Liability Rate Maturing: Over 1 year to 2 years $ 10,000 1.81 % $ 5,000 1.88 % Over 2 years to 3 years — — 5,000 1.73 Total $ 10,000 1.81 % $ 10,000 1.81 % |
Summary comparing carrying value and fair value of securities pledged to secure repurchase agreements, repurchase liability, and amount at risk | Weighted Carrying Fair Average Value of Value of Repurchase Amount Months to (Dollars in thousands) Securities Securities Liability at Risk Maturity Maturing: Over 90 days $ 13,373 $ 11,355 $ 10,000 $ 3,373 21 |
Offsetting of Financial Liabi_2
Offsetting of Financial Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Offsetting of Financial Liabilities | |
Schedule of securities sold under agreements to repurchase subject to conditional right of offset | Net Amount of Gross Amount Not Offset in the Gross Amount Gross Amount Liabilities Balance Sheet of Recognized Offset in the Presented in the Financial Cash Collateral (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Pledged Net Amount March 31, 2023: Securities sold under agreements to repurchase $ 10,000 $ — $ 10,000 $ 10,000 $ — $ — December 31, 2022: Securities sold under agreements to repurchase $ 10,000 $ — $ 10,000 $ 10,000 $ — $ — |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Employee Stock Ownership Plan. | |
Schedule of shares held by the ESOP trust | March 31, December 31, 2023 2022 Allocated shares 595,708 583,474 Unearned shares 281,364 293,598 Total ESOP shares 877,072 877,072 Fair value of unearned shares, in thousands $ 5,433 $ 7,049 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Schedule of compensation expense and related tax benefit for all share-based awards | Three Months Ended March 31, (In thousands) 2023 2022 Compensation expense $ (42) $ 134 Income tax benefit (11) 37 |
Schedule of stock option activity | Weighted Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Price Life (years) (in thousands) Options outstanding at December 31, 2021 3,085 $ 23.62 0.67 $ 5 Granted — — — — Exercised — — — — Forfeited — — — — Expired — — — — Options outstanding at March 31, 2022 3,085 $ 23.62 0.42 $ 1 |
Restricted Stock | |
Schedule of restricted stock award activity | Weighted Time-Based Average Grant Restricted Date Fair Stock Value Unvested at December 31, 2022 23,664 $ 24.15 Granted — — Vested 4,540 21.05 Forfeited — — Unvested at March 31, 2023 19,124 $ 24.89 Unvested at December 31, 2021 23,208 $ 24.61 Granted — — Vested 8,001 23.75 Forfeited — — Unvested at March 31, 2022 15,207 $ 25.06 |
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, 2022 43,557 $ 23.63 Granted — — Vested — — Forfeited 16,348 21.05 Unvested at March 31, 2023 27,209 $ 25.18 Unvested at December 31, 2021 41,583 $ 24.68 Granted — — Vested 7,670 27.30 Forfeited 4,768 27.30 Unvested at March 31, 2022 29,145 $ 23.56 |
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, 2022 10,889 $ 24.04 Granted — — Vested — — Forfeited 4,087 22.16 Unvested at March 31, 2023 6,802 $ 25.16 Unvested at December 31, 2021 10,396 $ 24.03 Granted — — Vested — — Forfeited 3,110 24.45 Unvested at March 31, 2022 7,286 $ 23.85 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share | |
Schedule of information used to compute basic and diluted earnings per share | Three Months Ended March 31, (Dollars in thousands, except per share data) 2023 2022 Net income $ 2,316 $ 4,710 Income allocated to participating securities (19) (24) Net income available to common shareholders $ 2,297 $ 4,686 Weighted-average number of shares used in: Basic earnings per share 8,774,634 8,980,135 Dilutive common stock equivalents: Stock options and restricted stock units 32,110 34,319 Diluted earnings per share 8,806,744 9,014,454 Net income per common share, basic $ 0.26 $ 0.52 Net income per common share, diluted $ 0.26 $ 0.52 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Loss | |
Schedule of changes in components of accumulated other comprehensive loss, net of taxes | Unfunded Unrealized Pension (Gain)/Loss on (Dollars in thousands) Liability Securities Total Three months ended March 31, 2023 Balances at beginning of period $ 5,746 $ 1,998 $ 7,744 Other comprehensive income, net of taxes — (337) (337) Net current period other comprehensive income — (337) (337) Balances at end of period $ 5,746 $ 1,661 $ 7,407 Three months ended March 31, 2022 Balances at beginning of period $ 5,524 $ — $ 5,524 Other comprehensive loss, net of taxes — 103 103 Net current period other comprehensive loss — 103 103 Balances at end of period $ 5,524 $ 103 $ 5,627 |
Schedule of tax effect on each component of accumulated other comprehensive loss | Three Months Ended March 31, 2023 2022 Pretax After Tax Pretax After Tax (Dollars in thousands) Amount Tax Amount Amount Tax Amount Unrealized (gain) loss on securities $ (459) $ 122 $ (337) $ 141 $ (38) $ 103 Total $ (459) $ 122 $ (337) $ 141 $ (38) $ 103 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue Recognition | |
Reconciliation of revenue from contracts with customers and other revenue reported in line items | Service and (Dollars in thousands) Other Fees Other Total Three months ended March 31, 2023 Revenue from contracts with customers $ 275 $ 42 $ 317 Other revenue 35 33 68 Total $ 310 $ 75 $ 385 Three months ended March 31, 2022 Revenue from contracts with customers $ 310 $ 44 $ 354 Other revenue 31 1,053 1,084 Total $ 341 $ 1,097 $ 1,438 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases | |
Schedule of lease costs | Three Months Ended March 31, (Dollars in thousands) 2023 2022 Lease costs: Operating lease costs $ 705 $ 762 Short-term lease costs 104 15 Variable lease costs 43 38 Total lease costs $ 852 $ 815 Cash paid for amounts included in measurement of lease liabilities $ 769 $ 763 ROU assets obtained in exchange for new operating lease liabilities $ 118 $ 4,798 |
Schedule of future minimum rental commitments under noncancellable operating leases and lease payment obligations | (Dollars in thousands) 2023 $ 2,216 2024 2,757 2025 2,137 2026 1,974 2027 1,896 Thereafter 10,995 Total 21,975 Less lease incentives to be received in 2023 (4,996) Less present value discount (2,259) Present value of leases $ 14,720 |
Schedule of other lease related information | March 31, March 31, 2023 2022 Weighted-average remaining lease term (years) 8.80 8.92 Weighted-average discount rate 2.09 % 1.90 % |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value | |
Schedule of estimated fair values of financial instruments | Carrying Fair Value Measurements Using (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 March 31, 2023 Assets Cash and cash equivalents $ 84,860 $ 84,860 $ 84,860 $ — $ — Investment securities available for sale 21,073 21,073 — 21,073 — Investment securities held to maturity 715,601 602,045 — 602,045 — Loans receivable, net 1,291,310 1,159,417 — — 1,159,417 FHLB stock 12,444 12,444 — 12,444 — FRB stock 3,177 3,177 — 3,177 — Accrued interest receivable 6,128 6,128 100 1,554 4,474 Liabilities Deposits 1,661,973 1,655,368 — 1,211,525 443,843 Advances from the Federal Home Loan Bank 246,000 239,598 — 239,598 — Securities sold under agreements to repurchase 10,000 9,530 — 9,530 — Accrued interest payable 1,012 1,012 — 36 976 December 31, 2022 Assets Cash and cash equivalents $ 40,553 $ 40,553 $ 40,553 $ — $ — Investment securities available for sale 20,821 20,821 — 20,821 — Investment securities held to maturity 717,773 591,084 — 591,084 — Loans receivable, net 1,294,764 1,180,840 — — 1,180,840 FHLB stock 8,197 8,197 — 8,197 — FRB stock 3,170 3,170 — 3,170 — Accrued interest receivable 6,115 6,115 23 1,497 4,595 Liabilities Deposits 1,716,152 1,708,612 — 1,286,465 422,147 Advances from the Federal Home Loan Bank 141,000 133,145 — 133,145 — Securities sold under agreements to repurchase 10,000 9,440 — 9,440 — Accrued interest payable 701 701 — 33 668 |
Schedule of assets and liabilities measured at fair value on a recurring basis | (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2023 Investment securities available for sale $ — $ 21,073 $ — $ 21,073 December 31, 2022 Investment securities available for sale — 20,821 — 20,821 |
Organization - Narrative (Detai
Organization - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 subsidiary | |
Organization | |
Number of inactive subsidiaries | 1 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Allowance of Credit Losses (ACL) on Loans and Securities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) item | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Reasonable and supportable forecast period | 1 year |
Number of pools | item | 3 |
Financing receivable accrued interest after allowance for credit loss | $ 4.5 |
ACL | $ 0 |
Real estate loans | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Term of financing receivable | 30 years |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 01, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Reversal of provision for credit losses | $ (100) | ||
After-tax decrease to retained earnings | $ 213,336 | $ 215,314 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||
Reversal of provision for credit losses | $ 3,200 | ||
After-tax decrease to retained earnings | $ (2,300) |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents | ||
Cash and due from banks | $ 11,782 | $ 9,722 |
Interest-earning deposits in other banks | 73,078 | 30,831 |
Cash and cash equivalents | $ 84,860 | $ 40,553 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Values of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-Sale [Abstract] | ||
Amortized Cost | $ 23,337 | |
Estimated Fair Value | 21,073 | $ 20,821 |
ACL | 0 | |
Debt Securities, Held-to-Maturity, Maturity [Abstract] | ||
Amortized Cost | 715,601 | 717,773 |
Estimated Fair Value | 602,045 | 591,084 |
Debt Securities, Available-for-Sale and Held-to-Maturity, after Allowance for Credit Loss [Abstract] | ||
Total Amortized Cost | 738,938 | 741,317 |
Total Gross Unrealized Gains | 80 | 62 |
Total Gross Unrealized Losses | (115,900) | (129,474) |
Total Estimated Fair Value | 623,118 | 611,905 |
U.S. government-sponsored mortgage-backed securities | ||
Available-for-Sale [Abstract] | ||
Amortized Cost | 23,337 | 23,544 |
Gross Unrealized Losses | (2,264) | (2,723) |
Estimated Fair Value | 21,073 | 20,821 |
Debt Securities, Held-to-Maturity, Maturity [Abstract] | ||
Amortized Cost | 715,601 | 717,773 |
Gross Unrealized Gains | 80 | 62 |
Gross Unrealized Losses | (113,636) | (126,751) |
Estimated Fair Value | 602,045 | $ 591,084 |
Debt Securities, Available-for-Sale and Held-to-Maturity, after Allowance for Credit Loss [Abstract] | ||
Total ACL | $ 0 |
Investment Securities - Maturit
Investment Securities - Maturity Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due after 10 years | $ 23,337 | |
Amortized Cost | 23,337 | |
Estimated Fair Value | ||
Due after 10 years | 21,073 | |
Estimated Fair Value | 21,073 | $ 20,821 |
U.S. government-sponsored mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost | 23,337 | 23,544 |
Estimated Fair Value | ||
Estimated Fair Value | $ 21,073 | $ 20,821 |
Investment Securities - Matur_2
Investment Securities - Maturity Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Held-to-maturity, Amortized Cost | ||
Due within 5 years | $ 19 | |
Due after 5 years through 10 years | 9 | |
Due after 10 years | 715,573 | |
Amortized Cost | 715,601 | $ 717,773 |
Held-to-maturity, Estimated Fair Value | ||
Due within 5 years | 19 | |
Due after 5 years through 10 years | 8 | |
Due after 10 years | 602,018 | |
Estimated Fair Value | $ 602,045 | $ 591,084 |
Investment Securities - Securit
Investment Securities - Securities Pledged (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Realized gains and losses and the proceeds from sales of securities | ||
Amortized cost | $ 715,601 | $ 717,773 |
Debt Securities, Held-to-Maturity, Pledged Status [Extensible Enumeration] | Asset Pledged as Collateral with Right [Member] | |
Debt Securities, Held-to-Maturity, Pledging Purpose [Extensible Enumeration] | Amortized cost | |
Asset Pledged as Collateral with Right [Member] | ||
Realized gains and losses and the proceeds from sales of securities | ||
Amortized cost | $ 241,500 | $ 272,800 |
Investment Securities - Availab
Investment Securities - Available-for-Sale Unrealized Loss Position Summary (Details) $ in Thousands | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
U.S. government-sponsored mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Less Than 12 Months Fair Value | $ 4,414 | |
Less Than 12 Months Unrealized Losses | (250) | |
12 Months or Longer Fair Value | 16,659 | |
12 Months or Longer Unrealized Losses | $ (2,014) | |
Number of Securities | security | 4 | |
Total Fair Value | $ 21,073 | |
Total Unrealized Losses | $ (2,264) | |
U.S. government-sponsored mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Less Than 12 Months Fair Value | $ 20,821 | |
Less Than 12 Months Unrealized Losses | $ (2,723) | |
Number of Securities | security | 4 | |
Total Fair Value | $ 20,821 | |
Total Unrealized Losses | $ (2,723) |
Investment Securities - Held-to
Investment Securities - Held-to-Maturity Unrealized Loss Position Summary (Details) - U.S. government-sponsored mortgage-backed securities $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) security |
Investment Securities | ||
Less Than 12 Months Fair Value | $ 92,902 | $ 210,128 |
Less Than 12 Months Unrealized Losses | (3,738) | (22,209) |
12 Months or Longer Fair Value | 502,468 | 377,418 |
12 Months or Longer Unrealized Losses | $ (109,898) | $ (104,542) |
Total Number of Securities | 150 | 148 |
Total Fair Value | $ 595,370 | $ 587,546 |
Total Unrealized Losses | $ (113,636) | $ (126,751) |
Investment Securities - Avail_2
Investment Securities - Available-for-Sale Unrealized Loss and Held-to-Maturity Total Unrealized Loss Position Summary (Details) $ in Thousands | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Investment Securities. | ||
Total Less Than 12 Months Unrealized Fair Value | $ 97,316 | $ 230,949 |
Total Less Than 12 Months Unrealized Losses | (3,988) | (24,932) |
Total 12 Months or Longer Unrealized Fair Value | 519,127 | 377,418 |
Total 12 Months or Longer Unrealized Losses | $ (111,912) | $ (104,542) |
Total Number of Securities | security | 154 | 152 |
Total Fair value | $ 616,443 | $ 608,367 |
Total Unrealized losses | $ (115,900) | $ (129,474) |
Investment Securities - Mortgag
Investment Securities - Mortgage-Backed Securities (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
U.S. government-sponsored mortgage-backed securities | |
Schedule of Investments [Line Items] | |
Allowance for credit losses | $ 0 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Credit Losses - Components (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Components of loans receivable, net of allowance for credit losses | ||||
Less: Net unearned fees and discounts | $ (2,040) | |||
Less: Allowance for loan losses | (5,127) | $ (2,032) | ||
Total unearned fees, discounts, and allowance for credit losses | (7,167) | |||
Loans receivable, net | 1,291,310 | |||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Less: Net unearned fees and discounts | (2,136) | |||
Less: Allowance for loan losses | (2,032) | $ (2,459) | $ (2,669) | |
Total unearned fees, discounts and allowance for loan losses | (4,168) | |||
Loans receivable, net | 1,294,764 | |||
Construction, Commercial and Other Mortgage Loans | ||||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Less: Allowance for loan losses | (434) | (434) | (435) | |
Home Equity Loans and Lines of Credit | ||||
Components of loans receivable, net of allowance for credit losses | ||||
Less: Allowance for loan losses | (1) | |||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Less: Allowance for loan losses | (1) | (1) | (1) | |
Consumer and other | ||||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Less: Allowance for loan losses | (75) | (92) | (89) | |
Unallocated | ||||
Components of loans receivable, net of allowance for credit losses | ||||
Less: Allowance for loan losses | (259) | |||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Less: Allowance for loan losses | (259) | $ (298) | $ (330) | |
Real estate loans | ||||
Components of loans receivable, net of allowance for credit losses | ||||
Total loans | 1,290,149 | |||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Loans receivable, net | 1,290,335 | |||
Real estate loans | One- to four-family residential | ||||
Components of loans receivable, net of allowance for credit losses | ||||
Total loans | 1,253,020 | |||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Loans receivable, net | 1,253,558 | |||
Real estate loans | Multi-family residential | ||||
Components of loans receivable, net of allowance for credit losses | ||||
Total loans | 6,239 | |||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Loans receivable, net | 6,448 | |||
Real estate loans | Construction, Commercial and Other Mortgage Loans | ||||
Components of loans receivable, net of allowance for credit losses | ||||
Total loans | 24,587 | |||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Loans receivable, net | 23,903 | |||
Real estate loans | Home Equity Loans and Lines of Credit | ||||
Components of loans receivable, net of allowance for credit losses | ||||
Total loans | 6,303 | |||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Loans receivable, net | 6,426 | |||
Other loans | ||||
Components of loans receivable, net of allowance for credit losses | ||||
Total loans | 8,328 | |||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Loans receivable, net | 8,597 | |||
Other loans | Loans on Deposit Accounts | ||||
Components of loans receivable, net of allowance for credit losses | ||||
Total loans | 241 | |||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Loans receivable, net | 216 | |||
Other loans | Consumer and other | ||||
Components of loans receivable, net of allowance for credit losses | ||||
Total loans | $ 8,087 | |||
Components of loans receivable, net of allowance for credit losses, prior adoption | ||||
Loans receivable, net | $ 8,381 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Credit Losses - Activity in Allowance for Loan Losses by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 01, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Activity in allowance for loan losses | |||
Balance, beginning of period | $ 2,032 | $ 2,032 | |
(Reversal of provision) provision for credit losses | (100) | ||
Allowance for loan losses on loans receivable after (reversal of provision) provision for loan losses | 5,141 | ||
Charge-offs | (15) | ||
Recoveries | 1 | ||
Net charge-offs | 14 | ||
Balance, end of period | 5,127 | ||
Activity in allowance for loan losses, prior adoption | |||
Balance, beginning of period | 2,032 | 2,032 | $ 2,669 |
(Reversal of provision) provision for loan losses | (168) | ||
Allowance for loan losses on loans receivable after (reversal of provision) provision for loan losses | 2,501 | ||
Charge-offs | (42) | ||
Net charge-offs | (42) | ||
Balance, end of period | 2,459 | ||
Adoption of ASU No. 2016-13 | Accounting Standards Update 2016-13 [Member] | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 3,209 | 3,209 | |
(Reversal of provision) provision for credit losses | 3,200 | ||
Real Estate | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 1,263 | 1,263 | |
(Reversal of provision) provision for credit losses | (27) | ||
Allowance for loan losses on loans receivable after (reversal of provision) provision for loan losses | 4,629 | ||
Balance, end of period | 4,629 | ||
Real Estate | Adoption of ASU No. 2016-13 | Accounting Standards Update 2016-13 [Member] | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 3,393 | 3,393 | |
Commercial | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 434 | 434 | |
(Reversal of provision) provision for credit losses | (88) | ||
Allowance for loan losses on loans receivable after (reversal of provision) provision for loan losses | 417 | ||
Balance, end of period | 417 | ||
Commercial | Adoption of ASU No. 2016-13 | Accounting Standards Update 2016-13 [Member] | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 71 | 71 | |
Residential Mortgage | |||
Activity in allowance for loan losses, prior adoption | |||
Balance, beginning of period | 1,263 | 1,263 | 1,814 |
(Reversal of provision) provision for loan losses | (180) | ||
Allowance for loan losses on loans receivable after (reversal of provision) provision for loan losses | 1,634 | ||
Balance, end of period | 1,634 | ||
Construction, Commercial and Other Mortgage Loans | |||
Activity in allowance for loan losses, prior adoption | |||
Balance, beginning of period | 434 | 434 | 435 |
(Reversal of provision) provision for loan losses | (1) | ||
Allowance for loan losses on loans receivable after (reversal of provision) provision for loan losses | 434 | ||
Balance, end of period | 434 | ||
Home Equity Loans and Lines of Credit | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 1 | 1 | |
Activity in allowance for loan losses, prior adoption | |||
Balance, beginning of period | 1 | 1 | 1 |
Allowance for loan losses on loans receivable after (reversal of provision) provision for loan losses | 1 | ||
Balance, end of period | 1 | ||
Home Equity Loans and Lines of Credit | Adoption of ASU No. 2016-13 | Accounting Standards Update 2016-13 [Member] | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | (1) | (1) | |
Consumer | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 75 | 75 | |
(Reversal of provision) provision for credit losses | 15 | ||
Allowance for loan losses on loans receivable after (reversal of provision) provision for loan losses | 95 | ||
Charge-offs | (15) | ||
Recoveries | 1 | ||
Net charge-offs | 14 | ||
Balance, end of period | 81 | ||
Consumer | Adoption of ASU No. 2016-13 | Accounting Standards Update 2016-13 [Member] | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 5 | 5 | |
Unallocated | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 259 | 259 | |
Activity in allowance for loan losses, prior adoption | |||
Balance, beginning of period | 259 | 259 | 330 |
(Reversal of provision) provision for loan losses | (32) | ||
Allowance for loan losses on loans receivable after (reversal of provision) provision for loan losses | 298 | ||
Balance, end of period | 298 | ||
Unallocated | Adoption of ASU No. 2016-13 | Accounting Standards Update 2016-13 [Member] | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | (259) | (259) | |
Consumer and other | |||
Activity in allowance for loan losses, prior adoption | |||
Balance, beginning of period | $ 75 | $ 75 | 89 |
(Reversal of provision) provision for loan losses | 45 | ||
Allowance for loan losses on loans receivable after (reversal of provision) provision for loan losses | 134 | ||
Charge-offs | (42) | ||
Net charge-offs | (42) | ||
Balance, end of period | $ 92 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Credit Losses - Allowance for Loan Losses and Loans, Net of Unearned Fees and Discounts, by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Allowance for loan losses: | |||
Collectively evaluated for impairment | $ 2,032 | ||
Total ending allowance balance | 2,032 | $ 2,459 | $ 2,669 |
Loans: | |||
Individually evaluated for impairment | 2,715 | ||
Collectively evaluated for impairment | 1,294,081 | ||
Total ending loan balance | 1,296,796 | ||
Residential Mortgage | |||
Allowance for loan losses: | |||
Collectively evaluated for impairment | 1,263 | ||
Total ending allowance balance | 1,263 | 1,634 | 1,814 |
Loans: | |||
Individually evaluated for impairment | 2,693 | ||
Collectively evaluated for impairment | 1,255,300 | ||
Total ending loan balance | 1,257,993 | ||
Construction, Commercial and Other Mortgage Loans | |||
Allowance for loan losses: | |||
Collectively evaluated for impairment | 434 | ||
Total ending allowance balance | 434 | 434 | 435 |
Loans: | |||
Collectively evaluated for impairment | 23,775 | ||
Total ending loan balance | 23,775 | ||
Home Equity Loans and Lines of Credit | |||
Allowance for loan losses: | |||
Collectively evaluated for impairment | 1 | ||
Total ending allowance balance | 1 | 1 | 1 |
Loans: | |||
Individually evaluated for impairment | 16 | ||
Collectively evaluated for impairment | 6,411 | ||
Total ending loan balance | 6,427 | ||
Consumer and other | |||
Allowance for loan losses: | |||
Collectively evaluated for impairment | 75 | ||
Total ending allowance balance | 75 | 92 | 89 |
Loans: | |||
Collectively evaluated for impairment | 8,595 | ||
Total ending loan balance | 8,595 | ||
Unallocated | |||
Allowance for loan losses: | |||
Collectively evaluated for impairment | 259 | ||
Total ending allowance balance | 259 | $ 298 | $ 330 |
Loans: | |||
Individually evaluated for impairment | 6 | ||
Total ending loan balance | $ 6 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Credit Losses - Impaired Loans by Class (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Impaired loans | |||
Recorded Investment | $ 2,715 | ||
Unpaid Principal Balance | 3,245 | ||
Average Recorded Investment | $ 3,800 | ||
Interest Income Recognized | 7 | ||
Loans individually evaluated for impairment with a related allowance for loan loss | $ 0 | 0 | |
One- to four-family residential | |||
Impaired loans | |||
Recorded Investment | 2,693 | ||
Unpaid Principal Balance | 3,209 | ||
Average Recorded Investment | 3,782 | ||
Interest Income Recognized | 7 | ||
Home equity loans and lines of credit | |||
Impaired loans | |||
Recorded Investment | 16 | ||
Unpaid Principal Balance | 30 | ||
Average Recorded Investment | $ 18 | ||
Consumer and other | |||
Impaired loans | |||
Recorded Investment | 6 | ||
Unpaid Principal Balance | $ 6 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Credit Losses - Amortized Cost by Credit Quality Indicator (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Financing Receivable, Recorded Investment, Past Due | |
2023 | $ 19,610 |
2022 | 132,929 |
2021 | 295,908 |
2020 | 191,190 |
2019 | 95,547 |
Prior | 554,711 |
Revolving Loans Amortized Cost Basis | 6,542 |
Total | 1,296,437 |
Commercial | |
Financing Receivable, Recorded Investment, Past Due | |
2022 | 396 |
2021 | 4,952 |
2019 | 228 |
Prior | 1,171 |
Revolving Loans Amortized Cost Basis | 1,218 |
Total | 7,965 |
Consumer | |
Financing Receivable, Recorded Investment, Past Due | |
2023 | 79 |
2022 | 116 |
2021 | 39 |
2020 | 88 |
2019 | 29 |
Prior | 48 |
Revolving Loans Amortized Cost Basis | 5,324 |
Total | 5,723 |
Real Estate | |
Financing Receivable, Recorded Investment, Past Due | |
2023 | 19,531 |
2022 | 132,417 |
2021 | 290,917 |
2020 | 191,102 |
2019 | 95,290 |
Prior | 553,492 |
Total | 1,282,749 |
Not Past Due | Commercial | |
Financing Receivable, Recorded Investment, Past Due | |
2022 | 396 |
2021 | 4,952 |
2019 | 228 |
Prior | 1,171 |
Revolving Loans Amortized Cost Basis | 1,218 |
Total | 7,965 |
Not Past Due | Consumer | |
Financing Receivable, Recorded Investment, Past Due | |
2023 | 78 |
2022 | 113 |
2021 | 39 |
2020 | 88 |
2019 | 29 |
Prior | 48 |
Revolving Loans Amortized Cost Basis | 5,324 |
Total | 5,719 |
Not Past Due | Real Estate | |
Financing Receivable, Recorded Investment, Past Due | |
2023 | 19,531 |
2022 | 132,417 |
2021 | 290,917 |
2020 | 191,102 |
2019 | 95,150 |
Prior | 551,740 |
Total | 1,280,857 |
30 - 59 Days Past Due | Consumer | |
Financing Receivable, Recorded Investment, Past Due | |
2023 | 1 |
Total | 1 |
30 - 59 Days Past Due | Real Estate | |
Financing Receivable, Recorded Investment, Past Due | |
Prior | 874 |
Total | 874 |
60 - 89 Days Past Due | Consumer | |
Financing Receivable, Recorded Investment, Past Due | |
2022 | 3 |
Total | 3 |
60 - 89 Days Past Due | Real Estate | |
Financing Receivable, Recorded Investment, Past Due | |
Prior | 51 |
Total | 51 |
90 Days or More Past Due | Real Estate | |
Financing Receivable, Recorded Investment, Past Due | |
2019 | 140 |
Prior | 827 |
Total | $ 967 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Credit Losses - Aging of Loans and Accrual Status by Class (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | $ 1,296,437,000 | |
Total Loans | $ 1,296,796,000 | |
Nonaccrual Loans | 2,372,000 | 2,301,000 |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 1,251,116,000 | |
Total Loans | 1,251,554,000 | |
Nonaccrual Loans | 2,357,000 | 2,279,000 |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Multi-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 6,230,000 | |
Total Loans | 6,439,000 | |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Construction, Commercial and Other Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 24,456,000 | |
Total Loans | 23,775,000 | |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 6,305,000 | |
Total Loans | 6,427,000 | |
Nonaccrual Loans | 15,000 | 16,000 |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Loans on Deposit Accounts | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 241,000 | |
Total Loans | 217,000 | |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 8,089,000 | |
Total Loans | 8,384,000 | |
Nonaccrual Loans | 6,000 | |
Loans 90 Days or More Past Due and Still Accruing | 0 | 0 |
Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 1,294,541,000 | |
Total Loans | 1,295,816,000 | |
Not Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 1,249,239,000 | |
Total Loans | 1,250,586,000 | |
Not Past Due | Multi-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 6,230,000 | |
Total Loans | 6,439,000 | |
Not Past Due | Construction, Commercial and Other Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 24,456,000 | |
Total Loans | 23,775,000 | |
Not Past Due | Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 6,290,000 | |
Total Loans | 6,427,000 | |
Not Past Due | Loans on Deposit Accounts | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 241,000 | |
Total Loans | 217,000 | |
Not Past Due | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 8,085,000 | |
Total Loans | 8,372,000 | |
Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 1,896,000 | |
Total Loans | 980,000 | |
Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 1,877,000 | |
Total Loans | 968,000 | |
Past Due | Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 15,000 | |
Past Due | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 4,000 | |
Total Loans | 12,000 | |
30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 875,000 | |
Total Loans | 6,000 | |
30 - 59 Days Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 859,000 | |
30 - 59 Days Past Due | Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 15,000 | |
30 - 59 Days Past Due | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 1,000 | |
Total Loans | 6,000 | |
60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 54,000 | |
Total Loans | 409,000 | |
60 - 89 Days Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 51,000 | |
Total Loans | 409,000 | |
60 - 89 Days Past Due | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 3,000 | |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 967,000 | |
Total Loans | 565,000 | |
90 Days or More Past Due | One- to four-family residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 967,000 | |
Total Loans | $ 967,000 | 559,000 |
90 Days or More Past Due | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | $ 6,000 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Credit Losses - Amortized cost basis of loans on nonaccrual status (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Loans with a related ACL | $ 878 | |
Nonaccrual loans without a related ACL | 1,494 | |
Total Nonaccrual Loans | 2,372 | |
Total Nonaccrual Loans | 2,372 | $ 2,301 |
Real Estate [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Loans with a related ACL | 878 | |
Nonaccrual loans without a related ACL | 1,494 | |
Total Nonaccrual Loans | $ 2,372 | |
Total Nonaccrual Loans | 2,295 | |
Consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total Nonaccrual Loans | $ 6 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Credit Losses - Delinquent and Nonaccrual Loans (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Loans Receivable and Allowance for Credit Losses | |
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 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Credit Losses - Troubled Debt Restructurings (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) loan | Mar. 31, 2022 loan | Dec. 31, 2022 USD ($) | |
Additional disclosures | |||
Real estate owned | $ 0 | $ 0 | |
Loans modified in troubled debt restructuring | |||
Troubled debt restructurings | |||
Number of Loans | loan | 0 | 0 | |
Residential Mortgage | |||
Additional disclosures | |||
Mortgage loans in process of foreclosure, number of contracts | 3 | 2 | |
Mortgage loans in process of foreclosure, total value | $ 227,000 | ||
Residential Mortgage | One- to four-family residential | |||
Additional disclosures | |||
Mortgage loans in process of foreclosure, total value | $ 279,000 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Credit Losses - Collateral, Sales, Serviced for Others, Directors and Executive Officers (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | |
Accounts, Notes, Loans and Financing Receivable | |||
Residential mortgage loans sold, recognized gains | $ 1,000 | $ 18,000 | |
Loans serviced for others | 35,500,000 | $ 36,000,000 | |
Loans serviced for others, securitization for which the company continues to hold the related mortgage-backed securities | 20,400,000 | $ 20,700,000 | |
Loans serviced for others, amount of contractually specified servicing fees earned | $ 23,000 | 27,000 | |
Maximum | |||
Accounts, Notes, Loans and Financing Receivable | |||
Loan to value ratio (as a percent) | 80% | ||
Residential Mortgage Loans Held For Sale | |||
Accounts, Notes, Loans and Financing Receivable | |||
Residential mortgage loans sold, loan amount | $ 360,000 | $ 2,000,000 | |
Number of nonaccrual loans | loan | 0 |
Advances from the Federal Hom_3
Advances from the Federal Home Loan Bank (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank advances | ||
Federal Home Loan Bank stock, at cost | $ 12,444,000 | $ 8,197,000 |
Federal Home Loan Bank, Advances, Rolling Maturity | ||
Due within one year | 24,000,000 | 24,000,000 |
Due over 1 year to 2 years | 82,000,000 | 82,000,000 |
Due over 2 years to 3 years | 25,000,000 | 25,000,000 |
Due over 3 years to 4 years | 40,000,000 | 10,000,000 |
Due over 4 years to 5 years | 35,000,000 | |
Due over 5 years to 6 years | 40,000,000 | |
Total | $ 246,000,000 | $ 141,000,000 |
Weighted Average Rate | ||
Due within one year (as a percent) | 1.27% | 1.27% |
Due over 1 year to 2 years (as a percent) | 1.40% | 1.40% |
Due over 2 years to 3 years (as a percent) | 1.58% | 1.58% |
Due over 3 years to 4 years (as a percent) | 3.70% | 1.97% |
Due over 4 years to 5 years (as a percent) | 4.22% | |
Due over 5 years to 6 years (as a percent) | 4.41% | |
Total (as a percent) | 2.67% | 1.45% |
FHLB Des Moines | ||
Federal Home Loan Bank advances | ||
Available additional unused FHLB advances | $ 630,100 | $ 769,100 |
Territorial Savings Bank | FHLB Des Moines | ||
Federal Home Loan Bank advances | ||
Percentage of total assets used to determine maximum line of credit | 45% |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase - Summary of Repurchase Liability by Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Securities sold under agreements to repurchase | ||
Repurchase Liability | $ 10,000 | $ 10,000 |
Rate (as a percent) | 1.81% | 1.81% |
Over 1 year to 2 years | ||
Securities sold under agreements to repurchase | ||
Repurchase Liability | $ 10,000 | $ 5,000 |
Rate (as a percent) | 1.81% | 1.88% |
Over 2 years to 3 years | ||
Securities sold under agreements to repurchase | ||
Repurchase Liability | $ 5,000 | |
Rate (as a percent) | 1.73% |
Securities Sold Under Agreeme_4
Securities Sold Under Agreements to Repurchase - Summary of Securities Pledged (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Securities sold under agreements to repurchase | |
Repurchase liability maximum | 90% |
Maturing Over 90 days | |
Securities sold under agreements to repurchase | |
Carrying Value of Securities | $ 13,373 |
Fair Value of Securities | 11,355 |
Repurchase Liability | 10,000 |
Amount at Risk | $ 3,373 |
Weighted Average Months to Maturity | 21 months |
Offsetting of Financial Liabi_3
Offsetting of Financial Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Securities sold under agreements to repurchase | ||
Gross Amount of Recognized Liabilities | $ 10,000 | $ 10,000 |
Net Amount of Liabilities Presented in the Balance Sheet | 10,000 | 10,000 |
Gross amount not offset in the balance sheet | ||
Financial Instruments | $ 10,000 | $ 10,000 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Loan, Expense and Shares (Details) - USD ($) | 3 Months Ended | |||
Jan. 01, 2009 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Employee Stock Ownership Plan | ||||
Allocated shares | 595,708 | 583,474 | ||
Unearned shares | 281,364 | 293,598 | ||
Total ESOP shares | 877,072 | 877,072 | ||
Fair value of unearned shares, in thousands | $ 5,433,000 | $ 7,049,000 | ||
ESOP | ||||
Employee Stock Ownership Plan | ||||
Amount borrowed from employer | $ 9,800,000 | |||
Shares purchased | 978,650 | |||
Percentage of shares issued in initial public offering | 8% | |||
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 | $ 281,000 | $ 305,000 | ||
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 ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
ESOP restoration | Certain executives | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Accrued (reversed) benefits | $ 7,000 | $ 36,000 |
Share-Based Compensation - Plan
Share-Based Compensation - Plan Provisions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Compensation | ||
Compensation expense | $ (42) | $ 134 |
Income tax benefit | $ (11) | $ 37 |
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 | |
2019 Equity Incentive Plan | ||
Share-Based Compensation | ||
Shares remaining available for new awards under the 2019 Equity Plan | 144,630 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | |
Stock option activity | |||
Balance at beginning of period (in shares) | 3,085 | ||
Balance at end of period (in shares) | 0 | 3,085 | 3,085 |
Weighted Average Exercise Price | |||
Balance at beginning of period (in dollars per share) | $ 23.62 | ||
Balance at end of period (in dollars per share) | $ 23.62 | $ 23.62 | |
Remaining Contractual Life | |||
Options outstanding | 5 months 1 day | 8 months 1 day | |
Aggregate Intrinsic Value | |||
Beginning of period | $ 5 | ||
End of period | $ 1 | $ 5 | |
Vested during period (in shares) | 0 | ||
Unrecognized compensation costs | $ 0 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Awards (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
2019 Equity Incentive Plan | ||
Unrecognized compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 144,630 | |
Restricted Stock | ||
Restricted Stock Awards | ||
Unvested at beginning of period (in shares) | 23,664 | 23,208 |
Granted (in shares) | 0 | 0 |
Vested (in shares) | 4,540 | 8,001 |
Unvested at end of period (in shares) | 19,124 | 15,207 |
Weighted Average Grant Date Fair Value | ||
Unvested at beginning of period (in dollars per share) | $ 24.15 | $ 24.61 |
Granted (in dollars per share) | 0 | 0 |
Vested (in dollars per share) | 21.05 | 23.75 |
Unvested at end of period (in dollars per share) | $ 24.89 | $ 25.06 |
Unrecognized compensation | ||
Unrecognized compensation costs | $ 288,000 | |
Restricted Stock Units Based on a Performance Condition | ||
Restricted Stock Awards | ||
Unvested at beginning of period (in shares) | 43,557 | 41,583 |
Vested (in shares) | 7,670 | |
Forfeited (in shares) | 16,348 | 4,768 |
Unvested at end of period (in shares) | 27,209 | 29,145 |
Weighted Average Grant Date Fair Value | ||
Unvested at beginning of period (in dollars per share) | $ 23.63 | $ 24.68 |
Vested (in dollars per share) | 27.30 | |
Forfeited (in dollars per share) | 21.05 | 27.30 |
Unvested at end of period (in dollars per share) | $ 25.18 | $ 23.56 |
Unrecognized compensation | ||
Unrecognized compensation costs | $ 73,000 | |
Unrecognized compensation costs, period of recognition | 3 years | |
Restricted Stock Units Based on a Market Condition | ||
Restricted Stock Awards | ||
Unvested at beginning of period (in shares) | 10,889 | 10,396 |
Forfeited (in shares) | 4,087 | 3,110 |
Unvested at end of period (in shares) | 6,802 | 7,286 |
Weighted Average Grant Date Fair Value | ||
Unvested at beginning of period (in dollars per share) | $ 24.04 | $ 24.03 |
Forfeited (in dollars per share) | 22.16 | 24.45 |
Unvested at end of period (in dollars per share) | $ 25.16 | $ 23.85 |
Unrecognized compensation | ||
Unrecognized compensation costs | $ 53,000 | |
Unrecognized compensation costs, period of recognition | 3 years | |
Performance Based Restricted Stock Units (PRSUs) | ||
Unrecognized compensation | ||
Unrecognized compensation costs, period of recognition | 3 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share | ||
Net income | $ 2,316 | $ 4,710 |
Income allotted to participating securities | (19) | (24) |
Net income available to common shareholders | $ 2,297 | $ 4,686 |
Weighted-average number of shares used in: | ||
Basic earnings per share (in shares) | 8,774,634 | 8,980,135 |
Dilutive common stock equivalents: | ||
Stock options and restricted stock units (in shares) | 32,110 | 34,319 |
Diluted earnings per share (in shares) | 8,806,744 | 9,014,454 |
Net income per common share, basic (in dollars per share) | $ 0.26 | $ 0.52 |
Net income per common share, diluted (in dollars per share) | $ 0.26 | $ 0.52 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Changes in the components of accumulated other comprehensive loss, net of taxes | ||
Balances at beginning of period | $ (256,550) | $ (256,322) |
Other comprehensive (income) loss, net of taxes | (337) | 103 |
Net current period other comprehensive (income) loss | (337) | 103 |
Balances at end of period | (253,761) | (257,982) |
Accumulated Other Comprehensive (Loss)/Income | ||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||
Balances at beginning of period | 7,744 | 5,524 |
Net current period other comprehensive (income) loss | (337) | 103 |
Balances at end of period | 7,407 | 5,627 |
Unfunded Pension Liability | ||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||
Balances at beginning of period | 5,746 | 5,524 |
Balances at end of period | 5,746 | 5,524 |
Unrealized (Gain) / Loss on Securities | ||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||
Balances at beginning of period | 1,998 | |
Other comprehensive (income) loss, net of taxes | (337) | 103 |
Net current period other comprehensive (income) loss | (337) | 103 |
Balances at end of period | 1,661 | 103 |
Other comprehensive (income) loss, net of taxes | ||
Changes in the components of accumulated other comprehensive loss, net of taxes | ||
Other comprehensive (income) loss, net of taxes | $ (337) | $ 103 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Tax Effect on Each Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Tax effect on each component of other comprehensive loss | ||
Pretax amount | $ (459) | $ 141 |
Tax | 122 | (38) |
After Tax Amount | (337) | 103 |
Unrealized (Gain) / Loss on Securities | ||
Tax effect on each component of other comprehensive loss | ||
Pretax amount | (459) | 141 |
Tax | 122 | (38) |
After Tax Amount | $ (337) | $ 103 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | ||
Revenue from contracts with customers | $ 317 | $ 354 |
Other revenue | 68 | 1,084 |
Total | 385 | 1,438 |
Service and Other Fees | ||
Revenues | ||
Revenue from contracts with customers | 275 | 310 |
Other revenue | 35 | 31 |
Total | 310 | 341 |
Other | ||
Revenues | ||
Revenue from contracts with customers | 42 | 44 |
Other revenue | 33 | 1,053 |
Total | $ 75 | $ 1,097 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lease costs: | ||
Operating lease costs | $ 705 | $ 762 |
Short-term lease costs | 104 | 15 |
Variable lease costs | 43 | 38 |
Total lease costs | 852 | 815 |
Cash paid for amounts included in measurement of lease liabilities | 769 | 763 |
ROU assets obtained in exchange for new operating lease liabilities | $ 118 | $ 4,798 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Commitments Under Non-cancellable Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Future minimum rental commitments: | ||
2023 | $ 2,216 | |
2024 | 2,757 | |
2025 | 2,137 | |
2026 | 1,974 | |
2027 | 1,896 | |
Thereafter | 10,995 | |
Total | 21,975 | |
Less lease incentives to be received in 2023 | (4,996) | |
Less present value discount | (2,259) | |
Present value of leases | $ 14,720 | $ 15,295 |
Leases - Other Related Informat
Leases - Other Related Information (Details) | Mar. 31, 2023 | Mar. 31, 2022 |
Leases | ||
Weighted-average remaining lease term (years) | 8 years 9 months 18 days | 8 years 11 months 1 day |
Weighted-average discount rate | 2.09% | 1.90% |
Fair Value - Estimated Fair Val
Fair Value - Estimated Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Investment securities available for sale, at fair value | $ 21,073 | $ 20,821 |
Investment securities held to maturity | 602,045 | 591,084 |
Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 84,860 | 40,553 |
Investment securities available for sale, at fair value | 21,073 | 20,821 |
Investment securities held to maturity | 715,601 | 717,773 |
Loans receivable, net | 1,291,310 | 1,294,764 |
FHLB stock | 12,444 | 8,197 |
FRB stock | 3,177 | 3,170 |
Accrued interest receivable | 6,128 | 6,115 |
Liabilities | ||
Deposits | 1,661,973 | 1,716,152 |
Advances from the Federal Home Loan Bank | 246,000 | 141,000 |
Securities sold under agreements to repurchase | 10,000 | 10,000 |
Accrued interest payable | 1,012 | 701 |
Estimated Fair Value | ||
Assets | ||
Cash and cash equivalents | 84,860 | 40,553 |
Investment securities available for sale, at fair value | 21,073 | 20,821 |
Investment securities held to maturity | 602,045 | 591,084 |
Loans receivable, net | 1,159,417 | 1,180,840 |
FHLB stock | 12,444 | 8,197 |
FRB stock | 3,177 | 3,170 |
Accrued interest receivable | 6,128 | 6,115 |
Liabilities | ||
Deposits | 1,655,368 | 1,708,612 |
Advances from the Federal Home Loan Bank | 239,598 | 133,145 |
Securities sold under agreements to repurchase | 9,530 | 9,440 |
Accrued interest payable | 1,012 | 701 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 84,860 | 40,553 |
Accrued interest receivable | 100 | 23 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Investment securities available for sale, at fair value | 21,073 | 20,821 |
Investment securities held to maturity | 602,045 | 591,084 |
FHLB stock | 12,444 | 8,197 |
FRB stock | 3,177 | 3,170 |
Accrued interest receivable | 1,554 | 1,497 |
Liabilities | ||
Deposits | 1,211,525 | 1,286,465 |
Advances from the Federal Home Loan Bank | 239,598 | 133,145 |
Securities sold under agreements to repurchase | 9,530 | 9,440 |
Accrued interest payable | 36 | 33 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Loans receivable, net | 1,159,417 | 1,180,840 |
Accrued interest receivable | 4,474 | 4,595 |
Liabilities | ||
Deposits | 443,843 | 422,147 |
Accrued interest payable | $ 976 | $ 668 |
Fair Value - Recurring Basis (D
Fair Value - Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Investment securities available for sale, at fair value | $ 21,073 | $ 20,821 |
Fair Value, Measurements, Recurring | ||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Investment securities available for sale, at fair value | 21,073 | 20,821 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ||
Investment securities available for sale, at fair value | $ 21,073 | $ 20,821 |
Fair Value - Nonrecurring Basis
Fair Value - Nonrecurring Basis (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Fair Value, Measurements, Nonrecurring | |
Assets Measured at Fair Value on Nonrecurring Basis and Related Losses | |
Fair value | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | ||
Apr. 27, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Subsequent Events | |||
Quarterly cash dividend declared on common stock (in dollars per share) | $ 0.23 | $ 0.23 | |
Subsequent event | |||
Subsequent Events | |||
Quarterly cash dividend declared on common stock (in dollars per share) | $ 0.23 |