[X] |
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
[ ] |
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
401(k) PLAN
2023
|
2022
|
|||||||
Assets:
|
||||||||
Investments at fair value
|
||||||||
Mutual funds
|
$
|
28,945,992
|
$
|
23,923,424
|
||||
Territorial Bancorp Inc. common stock
|
4,265,888
|
8,442,375
|
||||||
Money market funds
|
174,254
|
293,912
|
||||||
Total investments at fair value
|
33,386,134
|
32,659,711
|
||||||
Investments at contract value
|
||||||||
Fixed annuity contract
|
5,095,206
|
4,704,478
|
||||||
Total investments
|
38,481,340
|
37,364,189
|
||||||
Notes receivable from participants
|
178,648
|
145,608
|
||||||
Employer contributions receivable
|
61,863
|
64,030
|
||||||
Total receivables
|
240,511
|
209,638
|
||||||
Net assets available for benefits
|
$
|
38,721,851
|
$
|
37,573,827
|
||||
See accompanying notes to financial statements.
|
2023
|
2022
|
|||||||
Additions (reductions) to net assets attributed to
|
||||||||
Investment income (loss):
|
||||||||
Net depreciation of investments
|
$
|
(397,664
|
)
|
$
|
(6,341,256
|
)
|
||
Dividend and interest income
|
898,507
|
784,738
|
||||||
Total investment income (loss)
|
500,843
|
(5,556,518
|
)
|
|||||
Interest income on notes receivable from participants
|
8,968
|
7,712
|
||||||
Total interest income
|
8,968
|
7,712
|
||||||
Contributions:
|
||||||||
Participants
|
1,479,541
|
1,504,513
|
||||||
Employer matching
|
61,863
|
64,030
|
||||||
Rollover
|
363,111
|
41,457
|
||||||
Total contributions
|
1,904,515
|
1,610,000
|
||||||
Total additions (reduction)
|
2,414,326
|
(3,938,806
|
)
|
|||||
Deductions from net assets attributed to
|
||||||||
Benefits paid to participants
|
(1,253,090
|
)
|
(1,373,611
|
)
|
||||
Administrative expenses
|
(13,212
|
)
|
(13,467
|
)
|
||||
Total deductions
|
(1,266,302
|
)
|
(1,387,078
|
)
|
||||
Net increase (decrease)
|
1,148,024
|
(5,325,884
|
)
|
|||||
Net assets available for benefits:
|
||||||||
Beginning of year
|
37,573,827
|
42,899,711
|
||||||
End of year
|
$
|
38,721,851
|
$
|
37,573,827
|
||||
See accompanying notes to financial statements.
|
(1)
|
Plan Description
|
(a)
|
Eligibility
|
(b)
|
Participant Contributions
|
(c)
|
Employer Matching Contributions
|
(d)
|
Employer Discretionary Contributions
|
(e)
|
Participants’ Accounts
|
(f)
|
Benefits Paid to Participants
|
(g)
|
Vesting
|
(h)
|
Notes Receivable from Participants
|
(i)
|
Termination
|
(2)
|
Summary of Significant Accounting Policies
|
(a)
|
Basis of Accounting
|
(b)
|
Investment Valuation and Income Recognition
|
(c)
|
Notes Receivable from Participants
|
(d)
|
Payment of Benefits
|
(e)
|
Expenses
|
(f)
|
Use of Estimates
|
(g)
|
Risks and Uncertainties
|
(h)
|
Subsequent Events
|
(3)
|
Tax Status
|
(4)
|
Lincoln Financial Group Stable Value Account
|
(5)
|
Fair Value Measurements
|
•
|
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Plan has the ability to access at the measurement date.
|
•
|
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
|
•
|
Level 3 inputs are unobservable inputs for the asset or liability.
|
Fair value of measurements
at reporting date using
|
||||||||||||||||
Quoted prices in active markets for identical assets
|
Significant other observable inputs
|
Significant unobservable inputs
|
||||||||||||||
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
December 31, 2023
|
||||||||||||||||
Investments at fair value:
|
||||||||||||||||
Money market funds
|
$
|
174,254
|
$
|
174,254
|
--
|
--
|
||||||||||
Mutual Funds
|
28,945,992
|
28,945,992
|
--
|
--
|
||||||||||||
Common Stock
|
4,265,889
|
4,265,889
|
--
|
--
|
||||||||||||
Total investments in the fair value hierarchy
|
$
|
33,386,135
|
$
|
33,386,135
|
--
|
--
|
||||||||||
December 31, 2022
|
||||||||||||||||
Investments at fair value:
|
||||||||||||||||
Money market funds
|
$
|
293,912
|
$
|
293,912
|
--
|
--
|
||||||||||
Mutual Funds
|
23,923,424
|
23,923,424
|
--
|
--
|
||||||||||||
Common Stock
|
8,442,375
|
8,442,375
|
--
|
--
|
||||||||||||
Total investments in the fair value hierarchy
|
$
|
32,659,711
|
$
|
32,659,711
|
--
|
--
|
(6)
|
Party-In-Interest Transactions
|
(a)
|
(b)
Identity of issue, borrower, lessor, or similar party
|
(c)
Description of investment, including maturity dates, rate of interest, collateral, par or maturity value
|
(d)
Cost
|
(e)
Current
value
|
||||
*
|
Wilmington Prime Money Market Fund
|
Money Market Fund, 174,254
shares
|
**
|
$
|
174,254
|
|||
Vanguard Windsor II Fund Admiral Shares
|
Mutual fund, 43,826 shares
|
**
|
3,333,392
|
|||||
Vanguard 500 Index Fund Admiral Shares
|
Mutual fund, 7,444 shares
|
**
|
3,275,093
|
|||||
Vanguard Growth Index Fund Admiral Shares
|
Mutual fund, 20,251 shares
|
**
|
3,240,146
|
|||||
Vanguard LifeStrategy Conservative Growth Fund
|
Mutual fund, 130,551 shares
|
**
|
2,659,316
|
|||||
Vanguard Target Retirement 2020 Fund
|
Mutual fund, 93,581 shares
|
**
|
2,514,519
|
|||||
Vanguard LifeStrategy Moderate Growth Fund
|
Mutual fund, 79,604 shares
|
**
|
2,423,936
|
|||||
Vanguard Small-Cap Index Fund Admiral Shares
|
Mutual fund, 23,531 shares
|
**
|
2,404,683
|
|||||
Vanguard International Growth Fund Admiral Shares
|
Mutual fund, 17,639 shares
|
**
|
1,795,811
|
|||||
Vanguard Target Retirement Income Fund
|
Mutual fund, 107,156 shares
|
**
|
1,394,095
|
|||||
Vanguard LifeStrategy Growth Fund
|
Mutual fund, 30,380 shares
|
**
|
1,258,954
|
|||||
Vanguard Target Retirement 2030 Fund
|
Mutual fund, 32,963 shares
|
**
|
1,169,205
|
|||||
Vanguard Target Retirement 2025 Fund
|
Mutual fund, 50,038 shares
|
**
|
919,703
|
|||||
Vanguard Total Bond Market Index Fund Admiral Shares
|
Mutual fund, 93,631 shares
|
**
|
909,158
|
|||||
Vanguard Target Retirement 2050 Fund
|
Mutual fund, 16,277 shares
|
**
|
723,328
|
|||||
Vanguard Target Retirement 2035 Fund
|
Mutual fund, 21,381 shares
|
**
|
472,955
|
|||||
Vanguard Target Retirement 2045 Fund
|
Mutual fund, 11,831 shares
|
**
|
315,425
|
|||||
Vanguard Target Retirement 2040 Fund
|
Mutual fund, 3,468 shares
|
**
|
136,273
|
|||||
Total mutual funds
|
28,945,992
|
|||||||
*
|
Territorial Bancorp Inc.
|
Common Stock, 382,760 shares
|
**
|
4,265,889
|
||||
*
|
Participant loans
|
Loans, with interest rates from 4.25% to 9.50%, maturing through 2033
|
186,845
|
|||||
Lincoln Financial Group Stable Value Account
|
Fixed annuity contract
|
**
|
5,093,435
|
|||||
$
|
38,666,415
|
Territorial Savings Bank 401(k) Plan
|
||
Date: July 15, 2024
|
By:
|
/s/ Karen J. Cox
|
Karen J. Cox
|
||
Executive Vice President
|