tbnk_Current folio_10K-A

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K/A

AMENDMENT NO. 1

 

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Fiscal Year Ended December 31, 2017

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to          

 

Commission File Number: 001-34403

 

Territorial Bancorp Inc.

(Name of Registrant as Specified in its Charter)

 

 

 

 

Maryland

 

26-4674701

(State or Other Jurisdiction of
Incorporation or Organization)

 

(I.R.S. Employer
Identification Number)

 

 

 

1132 Bishop Street, Suite 2200, Honolulu, Hawaii

 

96813

(Address of Principal Executive Office)

 

(Zip Code)

 

(808) 946-1400

(Registrant’s Telephone Number including area code)

 

Securities Registered pursuant to Section 12(b) of the Act:

 

Common Stock, par value $0.01 per share

(Title of Class)

 

The NASDAQ Stock Market LLC

(Name of exchange on which registered)

 

Securities Registered Under Section 12(g) of the Exchange Act:

None

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  YES  ☐  NO  ☒

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 of 15(d) of the Act. YES ☐  NO  ☒

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file reports), and (2) has been subject to such requirements for the past 90 days.

 

YES  ☒  NO  ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  ☒  No ☐

 

Indicate by a check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendments to this Form 10-K. ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  (Check one):

 

 

 

 

Large accelerated filer ☐

 

Accelerated filer  ☒

Non-accelerated filer  ☐

 

Smaller reporting company  ☐

Emerging growth company  ☐

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided persuant to Section 13(a) of the Exchange Act  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)  ☐  YES  ☒  NO

 

The aggregate value of the voting common equity held by nonaffiliates of the registrant, computed by reference to the closing price of the registrant’s shares of common stock as of June 30, 2017 ($31.19) was $266.0 million.

 

As of February 28, 2018, there were 9,731,022 shares outstanding of the registrant’s common stock.

 

DOCUMENTS INCORPORATED BY REFERENCE

None.

 

 

 

 


 

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TERRITORIAL BANCORP INC.

FORM 10-K/A

INDEX

 

EXPLANATORY NOTE 

1

 

 

 

PART II 

 

 

ITEM 8. 

Financial Statements and Supplementary Data

2

 

 

 

PART IV 

 

 

ITEM 15. 

Exhibits and Financial Statement Schedules

52

 

 

 

 


 

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EXPLANATORY NOTE

 

Territorial Bancorp Inc. (the “Company”) is filing this Amendment No. 1 on Form 10-K/A to its Annual Report on Form 10-K to re-file Item 8 of Part II of the Form 10-K, to include the signature and final date of the Report of Independent Registered Public Accounting Firm, which were inadvertently omitted from the previous filing.

 

 

 

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PART II

 

ITEM 8.Financial Statements and Supplementary Data

 

 

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Report of Independent Registered Public Accounting Firm

 

To the Stockholders and the Board of Directors of

Territorial Bancorp, Inc.

 

Opinions on the Financial Statements and Internal Control over Financial Reporting

 

We have audited the accompanying consolidated balance sheets of Territorial Bancorp, Inc. and subsidiaries (the “Company”) as of December 31, 2017 and 2016, the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2017, and the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2017 and 2016, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework 2013 issued by COSO.

 

Basis for Opinions

 

The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

 

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

 

Definition and Limitations of Internal Control Over Financial Reporting

 

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the

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transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

/s/ Moss Adams LLP

 

Portland, Oregon

March 15, 2018

 

We have served as the Company’s auditor since 2015.

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TERRITORIAL BANCORP INC. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2017 and 2016

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

 

2017

 

2016

 

ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

32,089

 

$

61,273

 

Investment securities available for sale

 

 

2,851

 

 

 —

 

Investment securities held to maturity, at amortized cost (fair value of $406,663 and $407,922 at December 31, 2017 and December 31, 2016, respectively)

 

 

404,792

 

 

407,656

 

Loans held for sale

 

 

403

 

 

1,601

 

Loans receivable, net

 

 

1,488,971

 

 

1,335,987

 

Federal Home Loan Bank stock, at cost

 

 

6,541

 

 

4,945

 

Federal Reserve Bank stock, at cost

 

 

3,103

 

 

3,095

 

Accrued interest receivable

 

 

5,142

 

 

4,732

 

Premises and equipment, net

 

 

5,721

 

 

4,327

 

Bank-owned life insurance

 

 

44,201

 

 

43,294

 

Income taxes  receivable

 

 

1,571

 

 

122

 

Deferred income tax assets, net

 

 

4,609

 

 

7,905

 

Prepaid expenses and other assets

 

 

3,852

 

 

2,625

 

Total assets

 

$

2,003,846

 

$

1,877,562

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Deposits

 

$

1,597,295

 

$

1,493,200

 

Advances from the Federal Home Loan Bank

 

 

107,200

 

 

69,000

 

Securities sold under agreements to repurchase

 

 

30,000

 

 

55,000

 

Accounts payable and accrued expenses

 

 

26,390

 

 

23,258

 

Income taxes payable

 

 

1,483

 

 

1,616

 

Advance payments by borrowers for taxes and insurance

 

 

6,624

 

 

5,702

 

  Total liabilities

 

 

1,768,992

 

 

1,647,776

 

 

 

 

 

 

 

 

 

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 9,915,058 and 9,778,974 shares at December 31, 2017 and December 31, 2016, respectively

 

 

99

 

 

98

 

Additional paid-in capital

 

 

73,050

 

 

71,914

 

Unearned ESOP shares

 

 

(5,383)

 

 

(5,872)

 

Retained earnings

 

 

172,782

 

 

168,962

 

Accumulated other comprehensive loss

 

 

(5,694)

 

 

(5,316)

 

  Total stockholders’ equity

 

 

234,854

 

 

229,786

 

  Total liabilities and stockholders’ equity

 

$

2,003,846

 

$

1,877,562

 

 

 

 

 

 

 

 

 

 

See accompanying notes to consolidated financial statements.

 

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TERRITORIAL BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Income

For the years ended December 31, 2017, 2016 and 2015

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

    

2016

    

2015

 

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans

 

$

55,144

 

$

51,168

 

$

45,903

 

Investment securities

 

 

12,526

 

 

14,365

 

 

16,873

 

Other investments

 

 

663

 

 

540

 

 

316

 

Total interest income

 

 

68,333

 

 

66,073

 

 

63,092

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

7,666

 

 

5,933

 

 

4,821

 

Advances from the Federal Home Loan Bank

 

 

1,105

 

 

1,035

 

 

697

 

Securities sold under agreements to repurchase

 

 

818

 

 

876

 

 

997

 

Total interest expense

 

 

9,589

 

 

7,844

 

 

6,515

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

58,744

 

 

58,229

 

 

56,577

 

Provision for loan losses

 

 

52

 

 

310

 

 

455

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

 

58,692

 

 

57,919

 

 

56,122

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Service fees on loan and deposit accounts

 

 

1,962

 

 

1,960

 

 

2,161

 

Income on bank-owned life insurance

 

 

907

 

 

966

 

 

1,026

 

Gain on sale of investment securities

 

 

431

 

 

370

 

 

701

 

Gain on sale of loans

 

 

199

 

 

406

 

 

503

 

Other

 

 

347

 

 

392

 

 

520

 

Total noninterest income

 

 

3,846

 

 

4,094

 

 

4,911

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

21,614

 

 

20,591

 

 

21,497

 

Occupancy

 

 

5,937

 

 

5,749

 

 

5,809

 

Equipment

 

 

3,614

 

 

3,566

 

 

3,894

 

Federal deposit insurance premiums

 

 

605

 

 

743

 

 

857

 

Other general and administrative expenses

 

 

4,704

 

 

4,230

 

 

4,442

 

Total noninterest expense

 

 

36,474

 

 

34,879

 

 

36,499

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

26,064

 

 

27,134

 

 

24,534

 

Income taxes

 

 

11,102

 

 

10,787

 

 

9,786

 

Net income

 

$

14,962

 

$

16,347

 

$

14,748

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.61

 

$

1.78

 

$

1.59

 

Diluted earnings per share

 

$

1.57

 

$

1.74

 

$

1.56

 

Cash dividends declared per common share

 

$

1.20

 

$

0.92

 

$

0.76

 

Basic weighted-average shares outstanding

 

 

9,273,783

 

 

9,093,385

 

 

9,073,015

 

Diluted weighted-average shares outstanding

 

 

9,532,724

 

 

9,311,975

 

 

9,263,267

 

 

See accompanying notes to consolidated financial statements.

 

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TERRITORIAL BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2017, 2016 and 2015

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

    

2016

    

2015

 

Net income

 

$

14,962

 

$

16,347

 

$

14,748

 

 

 

 

 

 

 

 

 

 

 

 

Change in unfunded pension liability

 

 

(373)

 

 

(240)

 

 

(12)

 

Change in unrealized loss on securities

 

 

(5)

 

 

13

 

 

27

 

Change in noncredit related loss on trust preferred securities

 

 

 —

 

 

147

 

 

137

 

Other comprehensive income (loss), net of tax

 

 

(378)

 

 

(80)

 

 

152

 

Comprehensive income

 

$

14,584

 

$

16,267

 

$

14,900

 

 

See accompanying notes to consolidated financial statements.

 

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TERRITORIAL BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity

For the years ended December 31, 2017, 2016 and 2015

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

Additional

 

Unearned

 

 

 

 

Other

 

Total

 

 

 

Common

 

Paid-in

 

ESOP

 

Retained

 

Comprehensive

 

Stockholders’

 

 

 

Stock

 

Capital

 

Shares

 

Earnings

 

Income (Loss)

 

Equity

 

Balances at December 31, 2014

 

$

99

 

$

75,229

 

$

(6,851)

 

$

153,289

 

$

(5,388)

 

$

216,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 —

 

 

 —

 

 

 —

 

 

14,748

 

 

 —

 

 

14,748

 

Other comprehensive income

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

152

 

 

152

 

Cash dividends paid ($0.76 per share)

 

 

 —

 

 

 —

 

 

 —

 

 

(7,013)

 

 

 —

 

 

(7,013)

 

Share-based compensation

 

 

 1

 

 

3,085

 

 

 —

 

 

 —

 

 

 —

 

 

3,086

 

Allocation of 48,932 ESOP shares

 

 

 —

 

 

720

 

 

490

 

 

 —

 

 

 —

 

 

1,210

 

Repurchase of 373,711 shares of company common stock

 

 

(4)

 

 

(8,933)

 

 

 —

 

 

 —

 

 

 —

 

 

(8,937)

 

Exercise of 1,000 options for common stock

 

 

 —

 

 

17

 

 

 —

 

 

 —

 

 

 —

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2015

 

$

96

 

$

70,118

 

$

(6,361)

 

$

161,024

 

$

(5,236)

 

$

219,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 —

 

 

 —

 

 

 —

 

 

16,347

 

 

 —

 

 

16,347

 

Other comprehensive loss

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(80)

 

 

(80)

 

Cash dividends paid ($0.92 per share)

 

 

 —

 

 

 —

 

 

 —

 

 

(8,409)

 

 

 —

 

 

(8,409)

 

Share-based compensation

 

 

 1

 

 

2,041

 

 

 —

 

 

 —

 

 

 —

 

 

2,042

 

Allocation of 48,932 ESOP shares

 

 

 —

 

 

864

 

 

489

 

 

 —

 

 

 —

 

 

1,353

 

Repurchase of 118,723 shares of company common stock

 

 

(1)

 

 

(3,293)

 

 

 —

 

 

 —

 

 

 —

 

 

(3,294)

 

Exercise of 125,870 options for common stock

 

 

 2

 

 

2,184

 

 

 —

 

 

 —

 

 

 —

 

 

2,186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2016

 

$

98

 

$

71,914

 

$

(5,872)

 

$

168,962

 

$

(5,316)

 

$

229,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 —

 

 

 —

 

 

 —

 

 

14,962

 

 

 —

 

 

14,962

 

Other comprehensive loss

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(378)

 

 

(378)

 

Cash dividends paid ($1.20 per share)

 

 

 —

 

 

 —

 

 

 —

 

 

(11,142)

 

 

 —

 

 

(11,142)

 

Share-based compensation

 

 

 —

 

 

106

 

 

 —

 

 

 —

 

 

 —

 

 

106

 

Allocation of 48,932 ESOP shares

 

 

 —

 

 

1,040

 

 

489

 

 

 —

 

 

 —

 

 

1,529

 

Repurchase of 160,003 shares of company common stock

 

 

(2)

 

 

(5,127)

 

 

 —

 

 

 —

 

 

 —

 

 

(5,129)

 

Exercise of 294,887 options for common stock

 

 

 3

 

 

5,117

 

 

 —

 

 

 —

 

 

 —

 

 

5,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2017

 

$

99

 

$

73,050

 

$

(5,383)

 

$

172,782

 

$

(5,694)

 

$

234,854

 

 

See accompanying notes to consolidated financial statements.

 

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TERRITORIAL BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2017, 2016 and 2015
(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

    

2016

    

2015

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net income

 

$

14,962

 

$

16,347

 

$

14,748

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

52

 

 

310

 

 

455

 

Depreciation and amortization

 

 

1,129

 

 

1,139

 

 

1,296

 

Deferred income tax expense (benefit)

 

 

3,436

 

 

1,490

 

 

(2,223)

 

Amortization of fees, discounts, and premiums

 

 

(478)

 

 

(715)

 

 

(492)

 

Origination of loans held for sale

 

 

(23,665)

 

 

(49,157)

 

 

(57,337)

 

Proceeds from sales of loans held for sale

 

 

25,063

 

 

49,207

 

 

56,493

 

Gain on sale of loans, net

 

 

(199)

 

 

(406)

 

 

(503)

 

Net gain on sale of real estate owned

 

 

 —

 

 

 —

 

 

(12)

 

Gain on sale of investment securities held to maturity

 

 

(431)

 

 

(370)

 

 

(701)

 

Net loss on disposal of premises and equipment

 

 

24

 

 

 —

 

 

 4

 

ESOP expense

 

 

1,529

 

 

1,353

 

 

1,210

 

Share-based compensation expense

 

 

106

 

 

2,042

 

 

3,086

 

Increase in accrued interest receivable

 

 

(410)

 

 

(48)

 

 

(248)

 

Net increase in bank-owned life insurance

 

 

(907)

 

 

(966)

 

 

(1,025)

 

Net increase in prepaid expenses and other assets

 

 

(1,227)

 

 

(355)

 

 

(366)

 

Net increase (decrease) in accounts payable and accrued expenses

 

 

2,604

 

 

(1,081)

 

 

249

 

Net increase in advance payments by borrowers for taxes and insurance

 

 

922

 

 

578

 

 

1,208

 

Net increase in income taxes receivable

 

 

(1,449)

 

 

(122)

 

 

 —

 

Net increase (decrease) in income taxes payable

 

 

(133)

 

 

(479)

 

 

1,269

 

 

 

 

 

 

 

 

 

 

 

 

Net cash from operating activities

 

 

20,928

 

 

18,767

 

 

17,111

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of investment securities held to maturity

 

 

(56,899)

 

 

(3,803)

 

 

(11,606)

 

Purchases of investment securities available for sale

 

 

(2,970)

 

 

 —

 

 

 —

 

Principal repayments on investment securities held to maturity

 

 

52,831

 

 

83,234

 

 

85,802

 

Principal repayments on investment securities available for sale

 

 

99

 

 

 —

 

 

 —

 

Proceeds from sale of investment securities held to maturity

 

 

7,446

 

 

5,462

 

 

7,718

 

Loan originations, net of principal repayments on loans receivable

 

 

(152,631)

 

 

(146,095)

 

 

(220,215)

 

Purchases of Federal Home Loan Bank stock

 

 

(5,929)

 

 

(1,075)

 

 

(3,120)

 

Proceeds from redemption of Federal Home Loan Bank stock

 

 

4,333

 

 

920

 

 

9,564

 

Purchases of Federal Reserve Bank stock

 

 

(8)

 

 

(73)

 

 

(97)

 

Proceeds from sale of real estate owned

 

 

 —

 

 

 —

 

 

204

 

Purchases of premises and equipment

 

 

(2,547)

 

 

(563)

 

 

(604)

 

 

 

 

 

 

 

 

 

 

 

 

Net cash from investing activities

 

 

(156,275)

 

 

(61,993)

 

 

(132,354)

 

 

(Continued)

 

9


 

Table of Contents

TERRITORIAL BANCORP INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2017, 2016 and 2015
(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

    

2016

    

2015

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Net increase in deposits

 

$

104,095

 

$

48,097

 

$

85,424

 

Proceeds from advances from the Federal Home Loan Bank

 

 

144,525

 

 

23,000

 

 

120,000

 

Repayments of advances from the Federal Home Loan Bank

 

 

(106,325)

 

 

(23,000)

 

 

(66,000)

 

Proceeds from securities sold under agreements to repurchase

 

 

 —

 

 

 —

 

 

30,000

 

Repayments of securities sold under agreements to repurchase

 

 

(25,000)

 

 

 —

 

 

(47,000)

 

Purchases of Fed Funds

 

 

10

 

 

10

 

 

10

 

Sales of Fed Funds

 

 

(10)

 

 

(10)

 

 

(10)

 

Proceeds from exercise of stock options

 

 

 —

 

 

566

 

 

17

 

Repurchases of common stock

 

 

(9)

 

 

(1,674)

 

 

(9,326)

 

Cash dividends paid

 

 

(11,123)

 

 

(8,409)

 

 

(7,013)

 

 

 

 

 

 

 

 

 

 

 

 

Net cash from financing activities

 

 

106,163

 

 

38,580

 

 

106,102

 

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

(29,184)

 

 

(4,646)

 

 

(9,141)

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of the period

 

 

61,273

 

 

65,919

 

 

75,060

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of the period

 

$

32,089

 

$

61,273

 

$

65,919

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

Cash paid for:

 

 

 

 

 

 

 

 

 

 

Interest on deposits and borrowings

 

$

9,231

 

$

7,863

 

$

6,648

 

Income taxes

 

 

9,319

 

 

9,645

 

 

10,324

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of noncash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

Company stock acquired through stock swap and net settlement transactions

 

$

5,120

 

$

1,620

 

$

 —

 

Loans transferred to real estate owned

 

 

 —

 

 

 —

 

 

192

 

Investments purchased, not settled

 

 

 —

 

 

 —

 

 

1,200

 

Investments purchased prior period, settled current period

 

 

 —

 

 

1,200

 

 

 &#x