CORRESP 1 filename1.htm SEC Correspondence

[Letterhead of Luse Gorman Pomerenk & Schick, P.C.]

 

(202) 274-2037   lspaccasi@luselaw.com

May 29, 2009

VIA EDGAR

Securities and Exchange Commission

Division of Corporation Finance

100 F Street, N.E.

Washington, D.C. 20549

 

Attn.: Christian Windsor, Esq.

Mail Stop 4561

 

  Re: Territorial Bancorp Inc. (Registration No. 333-155388)

Registration Statement on Form S-1

Dear Mr. Windsor:

On behalf of Territorial Bancorp Inc. (the “Company”) and in accordance with Rule 101 of Regulation S-T, attached please find the cash flow analysis in spreadsheet format requested by the staff in comment number 2 of the staff’s letter dated May 14, 2009.

If the staff has any questions regarding this filing, please contact the undersigned at (202) 274-2037 or Michael J. Brown of this office at (202) 274-2003.

 

Respectfully,
/s/ Lawrence M.F. Spaccasi
Lawrence M.F. Spaccasi

Enclosure

Territorial Savings Bank

Other-Than-Temporary Impairment, 50% Call

March 31, 2009

 

     Dollar
Price of
TSB's
Security
Based on
Discounted
Cash Flow		    Estimated
Market
Value
Calculated
by Red Pine
Advisors		    Estimated
Dollar Price
TSB's
Security (1)		     Estimated
Fair Value (2)		    Book
Value at
12/31/08		    Difference
Between
Estimated
Fair Value
and Book
Value		    Current
Quarter's
Credit
Loss
(See
Below)		    Other
Comprehensive
Income
(Difference
Less Credit
Loss)		    Book
Value at
3/31/2009 (3)

PreTSL XXIII

    27.50    16.42    19.74     699,352    3,542,088    2,842,736    —      —      3,542,088
     Amount of
Securities
Purchased		    Amount of
Securities
Issued		    Percentage of
Securities
Owned		     Total Present
Value of
Cash Flows,
50% Call		    Present
Value of
Cash Flows
for TSB's
Security
(Percentage
Owned times
Total Present
Value) 		   Outstanding
Principal		    Credit
Loss
Recorded
in Previous
Quarters		    Amortized
Cost Basis
(Outstanding
Principal Less
Credit Loss
Recorded in
Previous
Quarters)		    Credit Loss
(Difference
Between PV
of Cash
Flows and
Amortized
Cost Basis)

PreTSL XXIII

    3,600,000    72,500,000    4.97 %   71,996,933    3,575,020    3,542,088    —      3,542,088    —  

Notes:

 

(1) Estimated dollar price of TSB's security is equal to the price calculated using market value estimated by Red Pine Advisors and by the discounted cash flow. The estimated market value was calculated by weighting Red Pine's value by 70% and the discounted cash flow by 30%.

 

(2) Estimated fair value is the estimated dollar price times outstanding principal

 

(3) Book value at 3/31/09 is equal to the original principal balance less any principal repayments and impairment charges (credit and other comprehensive income).

Pre-TSL XXIII

    3 Month Libor @ Dec Reset    1.32 %

Cash Flows Prepared by KBW, Cash flows discounted by effective yield.

    Margin    2.10 %

Current Cash Flows with Existing Deferrals and Defaults.

    Interest Rate on Security    3.42 %

Higher level of deferrals and defaults assumed for next 3 years.

      

Assume 50% collateral call in year 10

    Total PV of Cash Flows    71,996,933  

March 31, 2009

      
           
BONDS            
    Class D-1 (BBB)
Date   Balance   Interest Due   Interest   Principal   Total Cash Flow   Present Value of
Cash Flow
  72,500,000.00   —          
12/22/2006   72,500,000.00   633,650.00   633,650.00   —      
3/22/2007   72,500,000.00   619,875.00   619,875.00   —      
6/22/2007   72,500,000.00   633,650.00   633,650.00   —      
9/22/2007   72,259,314.52   633,650.00   633,650.00   240,685.48    
12/22/2007   72,018,196.03   624,681.77   624,681.77   241,118.49    
3/22/2008   71,843,950.10   622,597.30   622,597.30   174,245.92    
6/22/2008   71,726,023.54   627,916.12   627,916.12   117,926.56    
9/22/2008   71,608,330.43   626,885.45   626,885.45   117,693.11    
12/22/2008   71,379,087.90   619,054.02   619,054.02   229,242.53    
3/22/2009   71,989,379.10   610,291.20   —     —      
6/22/2009   72,618,566.28   629,187.17   —     0.00   0.00   0.00
9/22/2009   73,253,252.55   634,686.27   —     0.00   0.00   0.00
12/22/2009   73,886,526.91   633,274.37   0.00   —     0.00   0.00
3/22/2010   74,518,256.72   631,729.81   —     0.00   0.00   0.00
6/22/2010   75,169,546.28   651,289.56   —     —     0.00   0.00
9/22/2010   75,826,528.12   656,981.83   0.00   0.00   0.00   0.00
12/22/2010   76,482,048.45   655,520.34   —     —     0.00   0.00
3/22/2011   77,135,969.97   653,921.51   —     —     0.00   0.00
6/22/2011   77,810,138.34   674,168.38   —     0.00   0.00   0.00
9/22/2011   78,490,198.95   680,060.61   —     0.00   0.00   0.00
12/22/2011   79,168,746.72   678,547.77   —     —     0.00   0.00
3/22/2012   79,853,160.54   684,413.82   —     —     0.00   0.00
6/22/2012   80,551,077.16   697,916.62   —     0.00   0.00   0.00
9/22/2012   81,255,093.58   704,016.41   —     0.00   0.00   0.00
12/22/2012   81,957,543.86   702,450.28   —     —     0.00   0.00
3/22/2013   82,658,280.86   700,737.00   0.00   —     0.00   0.00
6/22/2013   83,380,714.23   722,433.37   —     0.00   0.00   0.00
9/22/2013   84,109,461.68   728,747.44   —     0.00   0.00   0.00
12/22/2013   81,550,454.55   727,126.30   3,286,133.42   0.00   3,286,133.42   2,788,468.89
3/22/2014   77,685,847.25   697,256.39   4,561,863.69   —     4,561,863.69   3,838,181.28
6/22/2014   73,851,580.79   678,974.30   4,513,240.76   —     4,513,240.76   3,764,368.07
9/22/2014   74,264,346.43   645,462.82   232,697.18   0.00   232,697.18   192,404.44
12/22/2014   71,284,193.51   642,015.27   3,539,696.58   94,894.39   3,634,590.97   2,979,483.66
3/22/2015   70,969,105.25   609,479.85   609,479.85   315,088.26   924,568.11   751,496.46
6/22/2015   70,656,810.86   620,269.98   620,269.98   312,294.40   932,564.38   751,427.79
9/22/2015   70,342,980.74   617,540.53   617,540.53   313,830.11   931,370.64   743,963.07
12/22/2015   70,026,988.65   608,115.07   608,115.07   315,992.09   924,107.16   731,834.12
3/22/2016   69,709,657.24   605,383.32   605,383.32   317,331.41   922,714.72   724,468.07
6/22/2016   69,392,813.17   609,262.40   609,262.40   316,844.07   926,106.47   720,830.45
9/22/2016   69,062,576.26   606,493.19   606,493.19   330,236.91   936,730.10   722,781.58
12/22/2016   68,773,271.16   597,045.97   597,045.97   289,305.10   886,351.07   678,047.09
3/22/2017   68,482,973.89   588,011.47   588,011.47   290,297.27   878,308.74   666,198.81
6/22/2017   68,196,010.83   598,541.19   598,541.19   286,963.06   885,504.25   665,836.66
9/22/2017   67,907,282.52   596,033.13   596,033.13   288,728.31   884,761.44   659,513.43
12/22/2017   67,615,651.40   587,058.46   587,058.46   291,631.13   878,689.59   649,373.28
3/22/2018   67,323,055.96   578,113.82   578,113.82   292,595.43   870,709.25   638,020.54
6/22/2018   67,033,667.90   588,403.51   588,403.51   289,388.06   877,791.57   637,636.71
9/22/2018   66,742,502.59   585,874.26   585,874.26   291,165.32   877,039.58   631,570.01
12/22/2018   66,448,463.31   576,988.93   576,988.93   294,039.28   871,028.21   621,864.85
3/22/2019   66,153,487.94   568,134.36   568,134.36   294,975.37   863,109.73   610,987.56
6/22/2019   65,861,591.37   578,181.48   578,181.48   291,896.58   870,078.06   610,583.38
9/22/2019   65,567,905.05   575,630.31   575,630.31   293,686.32   869,316.62   604,762.90
12/22/2019   65,271,797.10   566,834.54   566,834.54   296,107.94   862,942.48   595,182.96
3/22/2020   64,974,279.51   564,274.69   564,274.69   297,517.59   861,792.28   589,294.96
6/22/2020   64,677,376.30   567,875.20   567,875.20   296,903.21   864,778.41   586,212.89
9/22/2020   64,381,494.83   565,280.27   565,280.27   295,881.48   861,161.75   578,702.90
12/22/2020   64,083,223.87   556,578.02   556,578.02   298,270.96   854,848.98   569,536.82
3/22/2021   63,784,073.87   547,911.56   547,911.56   299,150.00   847,061.57   559,564.24
6/22/2021   63,487,663.79   557,472.81   557,472.81   296,410.07   853,882.88   559,182.65
9/22/2021   63,188,724.54   554,882.18   554,882.18   298,939.25   853,821.43   554,297.39
12/22/2021   62,948,266.54   546,266.52   546,266.52   240,458.01   786,724.53   506,360.66
3/22/2022   62,796,484.14   538,207.68   538,207.68   151,782.40   689,990.08   440,334.46
6/22/2022   62,646,145.10   548,841.27   548,841.27   150,339.04   699,180.31   442,333.08
9/22/2022   62,494,838.93   547,527.31   547,527.31   151,306.17   698,833.48   438,282.70
12/22/2022   62,342,308.72   540,267.88   540,267.88   152,530.21   692,798.09   430,773.32
3/22/2023   62,189,320.23   533,026.74   533,026.74   152,988.49   686,015.23   422,939.69
6/22/2023   62,037,734.76   543,534.66   543,534.66   151,585.48   695,120.14   424,839.56
9/22/2023   61,885,170.93   542,209.80   542,209.80   152,563.83   694,773.63   420,948.35
12/22/2023   61,731,385.37   534,997.30   534,997.30   153,785.56   688,782.86   413,741.71
3/22/2024   61,576,845.32   533,667.83   533,667.83   154,540.05   688,207.87   409,852.97
6/22/2024   61,422,529.22   538,181.63   538,181.63   154,316.11   692,497.73   408,834.19
9/22/2024   61,268,650.46   536,832.91   536,832.91   153,878.76   690,711.66   404,246.29
12/22/2024   61,113,554.13   529,667.48   529,667.48   155,096.33   684,763.81   397,330.17
3/22/2025   60,958,005.18   522,520.89   522,520.89   155,548.95   678,069.83   390,110.58
6/22/2025   60,803,775.56   532,772.97   532,772.97   154,229.62   687,002.59   391,824.94
9/22/2025   60,648,543.46   531,425.00   531,425.00   155,232.10   686,657.10   388,234.41
12/22/2025   60,492,094.16   524,306.66   524,306.66   156,449.29   680,755.95   381,598.83
3/22/2026   60,472,046.57   517,207.41   517,207.41   20,047.60   537,255.00   298,606.07
6/22/2026   60,472,046.57   528,525.69   528,525.69   —     528,525.69   291,208.91
9/22/2026   60,472,046.57   528,525.69   528,525.69   —     528,525.69   288,685.56
12/22/2026   60,472,046.57   522,780.84   522,780.84   —     522,780.84   283,100.15
3/22/2027   60,472,046.57   517,036.00   517,036.00   —     517,036.00   277,615.55
6/22/2027   60,472,046.57   528,525.69   528,525.69   —     528,525.69   281,325.77
9/22/2027   60,472,046.57   528,525.69   528,525.69   —     528,525.69   278,888.05
12/22/2027   60,472,046.57   522,780.84   522,780.84   —     522,780.84   273,492.21
3/22/2028   60,472,046.57   522,780.84   522,780.84   —     522,780.84   271,148.02
6/22/2028   60,472,046.57   528,525.69   528,525.69   —     528,525.69   271,752.33
9/22/2028   60,472,046.57   528,525.69   528,525.69   —     528,525.69   269,397.57
12/22/2028   60,472,046.57   522,780.84   522,780.84   —     522,780.84   264,185.35
3/22/2029   60,472,046.57   517,036.00   517,036.00   —     517,036.00   259,067.19
6/22/2029   60,472,046.57   528,525.69   528,525.69   —     528,525.69   262,529.51
9/22/2029   60,472,046.57   528,525.69   528,525.69   —     528,525.69   260,254.67
12/22/2029   60,472,046.57   522,780.84   522,780.84   —     522,780.84   255,219.34
3/22/2030   60,472,046.57   517,036.00   517,036.00   —     517,036.00   250,274.88
6/22/2030   60,472,046.57   528,525.69   528,525.69   —     528,525.69   253,619.70
9/22/2030   60,472,046.57   528,525.69   528,525.69   —     528,525.69   251,422.06
12/22/2030   60,472,046.57   522,780.84   522,780.84   —     522,780.84   246,557.62
3/22/2031   60,472,046.57   517,036.00   517,036.00   —     517,036.00   241,780.97
6/22/2031   60,472,046.57   528,525.69   528,525.69   —     528,525.69   245,012.27
9/22/2031   60,472,046.57   528,525.69   528,525.69   —     528,525.69   242,889.22
12/22/2031   60,472,046.57   522,780.84   522,780.84   —     522,780.84   238,189.87
3/22/2032   60,472,046.57   522,780.84   522,780.84   —     522,780.84   236,148.27
6/22/2032   60,472,046.57   528,525.69   528,525.69   —     528,525.69   236,674.57
9/22/2032   60,472,046.57   528,525.69   528,525.69   —     528,525.69   234,623.77
12/22/2032   60,472,046.57   522,780.84   522,780.84   —     522,780.84   230,084.34
3/22/2033   60,472,046.57   517,036.00   517,036.00   —     517,036.00   225,626.83
6/22/2033   60,472,046.57   528,525.69   528,525.69   —     528,525.69   228,642.23
9/22/2033   60,472,046.57   528,525.69   528,525.69   —     528,525.69   226,661.03
12/22/2033   60,472,046.57   522,780.84   522,780.84   —     522,780.84   222,275.66
3/22/2034   60,472,046.57   517,036.00   517,036.00   —     517,036.00   217,969.43
6/22/2034   60,472,046.57   528,525.69   528,525.69   —     528,525.69   220,882.50
9/22/2034   60,472,046.57   528,525.69   528,525.69   —     528,525.69   218,968.53
12/22/2034   60,472,046.57   522,780.84   522,780.84   —     522,780.84   214,731.99
3/22/2035   60,472,046.57   517,036.00   517,036.00   —     517,036.00   210,571.91
6/22/2035   60,472,046.57   528,525.69   528,525.69   —     528,525.69   213,386.12
9/22/2035   60,472,046.57   528,525.69   528,525.69   —     528,525.69   211,537.11
12/22/2035   60,472,046.57   522,780.84   522,780.84   —     522,780.84   207,444.35
3/22/2036   60,472,046.57   522,780.84   522,780.84   —     522,780.84   205,666.28
6/22/2036   60,472,046.57   528,525.69   528,525.69   —     528,525.69   206,124.65
9/22/2036   60,472,046.57   528,525.69   528,525.69   —     528,525.69   204,338.56
12/22/2036   —     522,780.84   522,780.84   60,472,046.57   60,994,827.41   23,379,688.59
3/22/2037   —     —     —     —      
6/22/2037   —     —     —     —       71,996,933.39