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Bank segment (Tables)
 6 Months Ended
Jun. 30, 2015
Bank subsidiary  
Schedule of statements of income data
Selected financial information
American Savings Bank, F.S.B.
Statements of Income Data
 
 
Three months ended 
 June 30
 
Six months  
 ended June 30
(in thousands)
 
2015
 
2014
 
2015
 
2014
Interest and dividend income
 
 

 
 

 
 

 
 

Interest and fees on loans
 
$
46,035

 
$
43,851

 
$
91,233

 
$
87,533

Interest and dividends on investment securities
 
3,306

 
2,950

 
6,357

 
5,985

Total interest and dividend income
 
49,341

 
46,801

 
97,590

 
93,518

Interest expense
 
 

 
 

 
 

 
 

Interest on deposit liabilities
 
1,266

 
1,237

 
2,526

 
2,462

Interest on other borrowings
 
1,487

 
1,420

 
2,953

 
2,825

Total interest expense
 
2,753

 
2,657

 
5,479

 
5,287

Net interest income
 
46,588

 
44,144

 
92,111

 
88,231

Provision for loan losses
 
1,825

 
1,021

 
2,439

 
2,016

Net interest income after provision for loan losses
 
44,763

 
43,123

 
89,672

 
86,215

Noninterest income
 
 

 
 

 
 

 
 

Fees from other financial services
 
5,550

 
5,217

 
10,905

 
10,345

Fee income on deposit liabilities
 
5,424

 
4,645

 
10,739

 
9,066

Fee income on other financial products
 
2,103

 
2,064

 
3,992

 
4,354

Bank-owned life insurance
 
1,058

 
982

 
2,041

 
1,945

Mortgage banking income
 
2,068

 
246

 
3,890

 
874

Gains on sale of investment securities
 
—

 
—

 
—

 
2,847

Other income, net
 
239

 
661

 
974

 
1,286

Total noninterest income
 
16,442

 
13,815

 
32,541

 
30,717

Noninterest expense
 
 

 
 

 
 

 
 

Compensation and employee benefits
 
22,319

 
19,872

 
44,085

 
40,158

Occupancy
 
4,009

 
4,489

 
8,122

 
8,442

Data processing
 
2,953

 
2,971

 
6,069

 
6,031

Services
 
2,833

 
2,855

 
5,174

 
5,128

Equipment
 
1,690

 
1,609

 
3,391

 
3,254

Office supplies, printing and postage
 
1,303

 
1,456

 
2,786

 
3,072

Marketing
 
844

 
1,031

 
1,685

 
1,742

FDIC insurance
 
773

 
805

 
1,584

 
1,601

Other expense
 
4,755

 
3,894

 
8,960

 
7,016

Total noninterest expense
 
41,479

 
38,982

 
81,856

 
76,444

Income before income taxes
 
19,726

 
17,956

 
40,357

 
40,488

Income taxes
 
6,875

 
6,420

 
14,031

 
14,553

Net income
 
$
12,851

 
$
11,536

 
$
26,326

 
$
25,935
Schedule of statements of comprehensive income data
American Savings Bank, F.S.B.
Statements of Comprehensive Income Data
 
 
Three months ended 
 June 30
 
Six months  
 ended June 30
(in thousands)
 
2015
 
2014
 
2015
 
2014
Net income
 
$
12,851

 
$
11,536

 
$
26,326

 
$
25,935

Other comprehensive income (loss), net of taxes:
 
 

 
 

 
 

 
 

Net unrealized gains (losses) on available-for-sale investment securities:
 
 

 
 

 
 

 
 

Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of (taxes) benefits of $2,439, $(1,679), $161 and $(3,343) for the respective periods
 
(3,694
)
 
2,543

 
(243
)
 
5,063

Less: reclassification adjustment for net realized gains included in net income, net of taxes of nil, nil, nil and $1,132 for the respective periods
 
—

 
—

 
—

 
(1,715
)
Retirement benefit plans:
 
 

 
 

 
 

 
 

Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $255, $142, $514 and $286 for the respective periods
 
387

 
215

 
779

 
434

Other comprehensive income (loss), net of taxes
 
(3,307
)
 
2,758

 
536

 
3,782

Comprehensive income
 
$
9,544

 
$
14,294

 
$
26,862

 
$
29,717
Schedule of balance sheets data
American Savings Bank, F.S.B.
Balance Sheets Data
(in thousands)
 
June 30, 2015
 
December 31, 2014
Assets
 
 

 
 

 
 

 
 

Cash and due from banks
 
 

 
$
106,914

 
 

 
$
107,233

Interest-bearing deposits
 
 
 
162,088

 
 
 
54,230

Available-for-sale investment securities, at fair value
 
 

 
693,520

 
 

 
550,394

Stock in Federal Home Loan Bank, at cost
 
 

 
10,678

 
 

 
69,302

Loans receivable held for investment
 
 

 
4,457,182

 
 

 
4,434,651

Allowance for loan losses
 
 

 
(46,365
)
 
 

 
(45,618
)
Net loans
 
 

 
4,410,817

 
 

 
4,389,033

Loans held for sale, at lower of cost or fair value
 
 

 
5,581

 
 

 
8,424

Other
 
 

 
305,310

 
 

 
305,416

Goodwill
 
 

 
82,190

 
 

 
82,190

Total assets
 
 

 
$
5,777,098

 
 

 
$
5,566,222

 
 
 
 
 
 
 
 
 
Liabilities and shareholder’s equity
 
 

 
 

 
 

 
 

Deposit liabilities—noninterest-bearing
 
 

 
$
1,455,721

 
 

 
$
1,342,794

Deposit liabilities—interest-bearing
 
 

 
3,347,550

 
 

 
3,280,621

Other borrowings
 
 

 
314,157

 
 

 
290,656

Other
 
 

 
113,015

 
 

 
118,363

Total liabilities
 
 

 
5,230,443

 
 

 
5,032,434

Commitments and contingencies
 
 

 


 
 

 


Common stock
 
 

 
1

 
 

 
1

Additional paid in capital
 
 
 
339,416

 
 
 
338,411

Retained earnings
 
 

 
223,260

 
 

 
211,934

Accumulated other comprehensive loss, net of tax benefits
 
 

 
 

 
 

 
 

Net unrealized gains on securities
 
$
219

 
 

 
$
462

 
 

Retirement benefit plans
 
(16,241
)
 
(16,022
)
 
(17,020
)
 
(16,558
)
Total shareholder’s equity
 
 

 
546,655

 
 

 
533,788

Total liabilities and shareholder’s equity
 
 

 
$
5,777,098

 
 

 
$
5,566,222

 
 
 
 
 
 
 
 
 
Other assets
 
 

 
 

 
 

 
 

Bank-owned life insurance
 
 

 
$
136,062

 
 

 
$
134,115

Premises and equipment, net
 
 

 
85,976

 
 

 
92,407

Prepaid expenses
 
 

 
3,728

 
 

 
3,196

Accrued interest receivable
 
 

 
14,052

 
 

 
13,632

Mortgage-servicing rights
 
 

 
12,265

 
 

 
11,540

Low-income housing equity investments
 
 
 
30,974

 
 
 
33,438

Real estate acquired in settlement of loans, net
 
 

 
318

 
 

 
891

Other
 
 

 
21,935

 
 

 
16,197

 
 
 

 
$
305,310

 
 

 
$
305,416

Other liabilities
 
 

 
 

 
 

 
 

Accrued expenses
 
 

 
$
26,915

 
 

 
$
37,880

Federal and state income taxes payable
 
 

 
26,502

 
 

 
28,642

Cashier’s checks
 
 

 
27,670

 
 

 
20,509

Advance payments by borrowers
 
 

 
10,093

 
 

 
9,652

Other
 
 

 
21,835

 
 

 
21,680

 
 
 

 
$
113,015

 
 

 
$
118,363
Schedule of the book value and aggregate fair value by major security type
  The major components of investment securities were as follows:
 
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Estimated fair
value
 
 
 
Gross unrealized losses
 
 
 
 
 
 
Less than 12 months
 
12 months or longer
(dollar in thousands)
 
 
 
 
 
Number of issues
 
Fair 
value
 
Amount
 
Number of issues
 
Fair 
value
 
Amount
June 30, 2015
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency obligations
 
$
168,143

 
$
1,355

 
$
(1,039
)
 
$
168,459

 
12

 
$
76,835

 
$
(477
)
 
3

 
$
18,332

 
$
(562
)
Mortgage-related securities- FNMA, FHLMC and GNMA
 
525,014

 
5,217

 
(5,170
)
 
525,061

 
20

 
170,965

 
(1,622
)
 
25

 
136,546

 
(3,548
)
 
 
$
693,157

 
$
6,572

 
$
(6,209
)
 
$
693,520

 
32

 
$
247,800

 
$
(2,099
)
 
28

 
$
154,878

 
$
(4,110
)
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency obligations
 
$
119,507

 
$
1,092

 
$
(1,039
)
 
$
119,560

 
6

 
$
41,970

 
$
(361
)
 
5

 
$
29,168

 
$
(678
)
Mortgage-related securities- FNMA, FHLMC and GNMA
 
430,120

 
5,653

 
(4,939
)
 
430,834

 
6

 
47,029

 
(164
)
 
29

 
172,623

 
(4,775
)
 
 
$
549,627

 
$
6,745

 
$
(5,978
)
 
$
550,394

 
12

 
$
88,999

 
$
(525
)
 
34

 
$
201,791

 
$
(5,453
)
Schedule of contractual maturities of available-for-sale securities
The contractual maturities of available-for-sale investment securities were as follows:
June 30, 2015
 
Amortized cost
 
Fair value
(in thousands)
 
 
 
 
Due in one year or less
 
$
—

 
$
—

Due after one year through five years
 
37,272

 
37,631

Due after five years through ten years
 
77,747

 
78,291

Due after ten years
 
53,124

 
52,537

 
 
168,143

 
168,459

Mortgage-related securities-FNMA,FHLMC and GNMA
 
525,014

 
525,061

Total available-for-sale securities
 
$
693,157

 
$
693,520
Schedule of allowance for loan losses
The allowance for loan losses (balances and changes) and financing receivables were as follows:
(in thousands)
 
Residential
1-4 family
 
Commercial real
estate
 
Home
equity line of credit
 
Residential land
 
Commercial construction
 
Residential construction
 
Commercial loans
 
Consumer loans
 
Unallocated
 
Total
Three months ended 
 June 30, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
4,921

 
$
11,228

 
$
6,523

 
$
2,286

 
$
2,837

 
$
21

 
$
14,580

 
$
3,399

 
$
—

 
$
45,795

Charge-offs
 
(58
)
 
—

 
(17
)
 
—

 
—

 
—

 
(756
)
 
(983
)
 
—

 
(1,814
)
Recoveries
 
55

 
—

 
8

 
136

 
—

 
—

 
106

 
254

 
—

 
559

Provision
 
(627
)
 
(808
)
 
99

 
(319
)
 
(262
)
 
(3
)
 
3,539

 
206

 
—

 
1,825

Ending balance
 
$
4,291

 
$
10,420

 
$
6,613

 
$
2,103

 
$
2,575

 
$
18

 
$
17,469

 
$
2,876

 
$
—

 
$
46,365

Three months ended 
 June 30, 2014
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
5,475

 
$
5,715

 
$
5,969

 
$
1,575

 
$
3,063

 
$
24

 
$
15,592

 
$
2,316

 
$
1,194

 
$
40,923

Charge-offs
 
(94
)
 
—

 
(136
)
 
(47
)
 
—

 
—

 
(246
)
 
(461
)
 
—

 
(984
)
Recoveries
 
555

 
—

 
314

 
77

 
—

 
—

 
225

 
241

 
—

 
1,412

Provision
 
(269
)
 
1,515

 
934

 
232

 
327

 
2

 
(427
)
 
(99
)
 
(1,194
)
 
1,021

Ending balance
 
$
5,667

 
$
7,230

 
$
7,081

 
$
1,837

 
$
3,390

 
$
26

 
$
15,144

 
$
1,997

 
$
—

 
$
42,372

Six months ended 
 June 30, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
4,662

 
$
8,954

 
$
6,982

 
$
1,875

 
$
5,471

 
$
28

 
$
14,017

 
$
3,629

 
$
—

 
$
45,618

Charge-offs
 
(214
)
 
—

 
(20
)
 
—

 
—

 
—

 
(802
)
 
(1,925
)
 
—

 
(2,961
)
Recoveries
 
67

 
—

 
39

 
185

 
—

 
—

 
447

 
531

 
—

 
1,269

Provision
 
(224
)
 
1,466

 
(388
)
 
43

 
(2,896
)
 
(10
)
 
3,807

 
641

 
—

 
2,439

Ending balance
 
$
4,291

 
$
10,420

 
$
6,613

 
$
2,103

 
$
2,575

 
$
18

 
$
17,469

 
$
2,876

 
$
—

 
$
46,365

Ending balance: individually evaluated for impairment
 
$
1,363

 
$
—

 
$
269

 
$
1,048

 
$
—

 
$
—

 
$
2,702

 
$
8

 
 
 
$
5,390

Ending balance: collectively evaluated for impairment
 
$
2,928

 
$
10,420

 
$
6,344

 
$
1,055

 
$
2,575

 
$
18

 
$
14,767

 
$
2,868

 
$
—

 
$
40,975

Financing Receivables:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
2,045,357

 
$
561,262

 
$
820,296

 
$
17,273

 
$
62,444

 
$
19,984

 
$
821,636

 
$
115,167

 
 
 
$
4,463,419

Ending balance: individually evaluated for impairment
 
$
22,720

 
$
522

 
$
1,899

 
$
6,534

 
$
—

 
$
—

 
$
23,541

 
$
15

 
 
 
$
55,231

Ending balance: collectively evaluated for impairment
 
$
2,022,637

 
$
560,740

 
$
818,397

 
$
10,739

 
$
62,444

 
$
19,984

 
$
798,095

 
$
115,152

 
 
 
$
4,408,188

Six months ended 
 June 30, 2014
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
5,534

 
$
5,059

 
$
5,229

 
$
1,817

 
$
2,397

 
$
19

 
$
15,803

 
$
2,367

 
$
1,891

 
$
40,116

Charge-offs
 
(360
)
 
—

 
(136
)
 
(53
)
 
—

 
—

 
(370
)
 
(1,022
)
 
—

 
(1,941
)
Recoveries
 
896

 
—

 
325

 
163

 
—

 
—

 
325

 
472

 
—

 
2,181

Provision
 
(403
)
 
2,171

 
1,663

 
(90
)
 
993

 
7

 
(614
)
 
180

 
(1,891
)
 
2,016

Ending balance
 
$
5,667

 
$
7,230

 
$
7,081

 
$
1,837

 
$
3,390

 
$
26

 
$
15,144

 
$
1,997

 
$
—

 
$
42,372

Ending balance: individually evaluated for impairment
 
$
969

 
$
941

 
$
14

 
$
1,202

 
$
—

 
$
—

 
$
1,239

 
$
5

 
 
 
$
4,370

Ending balance: collectively evaluated for impairment
 
$
4,698

 
$
6,289

 
$
7,067

 
$
635

 
$
3,390

 
$
26

 
$
13,905

 
$
1,992

 
$
—

 
$
38,002

Financing Receivables:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
2,019,092

 
$
476,116

 
$
790,837

 
$
17,189

 
$
80,312

 
$
17,441

 
$
782,804

 
$
111,254

 
 
 
$
4,295,045

Ending balance: individually evaluated for impairment
 
$
17,978

 
$
4,512

 
$
612

 
$
9,320

 
$
—

 
$
—

 
$
18,042

 
$
17

 
 
 
$
50,481

Ending balance: collectively evaluated for impairment
 
$
2,001,114

 
$
471,604

 
$
790,225

 
$
7,869

 
$
80,312

 
$
17,441

 
$
764,762

 
$
111,237

 
 
 
$
4,244,564
Schedule of credit risk profile by internally assigned grade for loans
The credit risk profile by internally assigned grade for loans was as follows:
 
 
June 30, 2015
 
December 31, 2014
(in thousands)
 
Commercial
real estate
 
Commercial
construction
 
Commercial
 
Commercial
real estate
 
Commercial
construction
 
Commercial
Grade:
 
 

 
 

 
 

 
 

 
 

 
 

Pass
 
$
507,904

 
$
58,356

 
$
763,238

 
$
493,105

 
$
79,312

 
$
743,334

Special mention
 
7,232

 
4,088

 
10,313

 
5,209

 
—

 
16,095

Substandard
 
46,126

 
—

 
47,492

 
33,603

 
17,126

 
31,665

Doubtful
 
—

 
—

 
593

 
—

 
—

 
663

Loss
 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
561,262

 
$
62,444

 
$
821,636

 
$
531,917

 
$
96,438

 
$
791,757
Schedule of credit risk profile based on payment activity for loans
The credit risk profile based on payment activity for loans was as follows:
(in thousands)
 
30-59
days
past due
 
60-89
days
past due
 
Greater
than
90 days
 
Total
past due
 
Current
 
Total
financing
receivables
 
Recorded
investment>
90 days and
accruing
June 30, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
5,016

 
$
1,900

 
$
11,998

 
$
18,914

 
$
2,026,443

 
$
2,045,357

 
$
—

Commercial real estate
 
—

 
—

 
—

 
—

 
561,262

 
561,262

 
—

Home equity line of credit
 
923

 
284

 
389

 
1,596

 
818,700

 
820,296

 
—

Residential land
 
420

 
267

 
—

 
687

 
16,586

 
17,273

 


Commercial construction
 
—

 
—

 
—

 
—

 
62,444

 
62,444

 
—

Residential construction
 
—

 
—

 
—

 
—

 
19,984

 
19,984

 
—

Commercial
 
907

 
147

 
528

 
1,582

 
820,054

 
821,636

 
—

Consumer
 
1,119

 
331

 
295

 
1,745

 
113,422

 
115,167

 
—

Total loans
 
$
8,385

 
$
2,929

 
$
13,210

 
$
24,524

 
$
4,438,895

 
$
4,463,419

 
$
—

December 31, 2014
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
6,124

 
$
1,732

 
$
12,632

 
$
20,488

 
$
2,023,717

 
$
2,044,205

 
$
—

Commercial real estate
 
—

 
—

 
—

 
—

 
531,917

 
531,917

 
—

Home equity line of credit
 
1,341

 
501

 
194

 
2,036

 
816,779

 
818,815

 
—

Residential land
 
—

 
—

 
—

 
—

 
16,240

 
16,240

 
—

Commercial construction
 
—

 
—

 
—

 
—

 
96,438

 
96,438

 
—

Residential construction
 
—

 
—

 
—

 
—

 
18,961

 
18,961

 
—

Commercial
 
699

 
145

 
569

 
1,413

 
790,344

 
791,757

 
—

Consumer
 
829

 
333

 
403

 
1,565

 
121,091

 
122,656

 
—

Total loans
 
$
8,993

 
$
2,711

 
$
13,798

 
$
25,502

 
$
4,415,487

 
$
4,440,989

 
$
—
Schedule of credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due
The credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due and TDR loans was as follows:
(in thousands)
 
June 30, 2015
 
December 31, 2014
Real estate:
 
 

 
 

Residential 1-4 family
 
$
18,172

 
$
19,253

Commercial real estate
 
522

 
5,112

Home equity line of credit
 
1,962

 
1,087

Residential land
 
712

 
720

Commercial construction
 
—

 
—

Residential construction
 
—

 
—

Commercial
 
9,225

 
10,053

Consumer
 
543

 
661

Total nonaccrual loans
 
$
31,136

 
$
36,886

Real estate:
 
 
 
 
Residential 1-4 family
 
$
—

 
$
—

Commercial real estate
 
—

 
—

Home equity line of credit
 
—

 
—

Residential land
 
—

 
—

Commercial construction
 
—

 
—

Residential construction
 
—

 
—

Commercial
 
—

 
—

Consumer
 
—

 
—

Total accruing loans 90 days or more past due
 
$
—

 
$
—

Real estate:
 
 
 
 
Residential 1-4 family
 
$
14,257

 
$
13,525

Commercial real estate
 
—

 
—

Home equity line of credit
 
1,362

 
480

Residential land
 
5,822

 
7,130

Commercial construction
 
—

 
—

Residential construction
 
—

 
—

Commercial
 
1,315

 
2,972

Consumer
 
—

 
—

Total troubled debt restructured loans not included above
 
$
22,756

 
$
24,107
Schedule of the carrying amount and the total unpaid principal balance of impaired loans, with and without recorded allowance for loans losses
The total carrying amount and the total unpaid principal balance of impaired loans were as follows:
 
 
June 30, 2015
 
Three months ended 
 June 30, 2015
 
Six months ended 
 June 30, 2015
(in thousands)
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
Allowance
 
Average
recorded
investment
 
Interest
income
recognized*
 
Average
recorded
investment
 
Interest
income
recognized*
With no related allowance recorded
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
11,132

 
$
12,417

 
$
—

 
$
11,193

 
$
66

 
$
11,373

 
$
155

Commercial real estate
 
522

 
593

 
—

 
530

 
—

 
543

 
—

Home equity line of credit
 
376

 
583

 
—

 
433

 
1

 
417

 
2

Residential land
 
2,597

 
3,366

 
—

 
3,026

 
44

 
2,831

 
96

Commercial construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial
 
5,221

 
7,119

 
—

 
5,432

 
139

 
6,363

 
141

Consumer
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
$
19,848

 
$
24,078

 
$
—

 
$
20,614

 
$
250

 
$
21,527

 
$
394

With an allowance recorded
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
11,588

 
$
11,641

 
$
1,363

 
$
11,794

 
$
130

 
$
11,651

 
$
256

Commercial real estate
 
—

 
—

 
—

 
1,474

 
—

 
2,978

 
—

Home equity line of credit
 
1,523

 
1,585

 
269

 
1,212

 
8

 
919

 
14

Residential land
 
3,937

 
4,015

 
1,048

 
4,142

 
84

 
4,666

 
167

Commercial construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial
 
18,320

 
20,161

 
2,702

 
9,358

 
36

 
7,170

 
86

Consumer
 
15

 
15

 
8

 
15

 
—

 
15

 
—

 
 
$
35,383

 
$
37,417

 
$
5,390

 
$
27,995

 
$
258

 
$
27,399

 
$
523

Total
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
22,720

 
$
24,058

 
$
1,363

 
$
22,987

 
$
196

 
$
23,024

 
$
411

Commercial real estate
 
522

 
593

 
—

 
2,004

 
—

 
3,521

 
—

Home equity line of credit
 
1,899

 
2,168

 
269

 
1,645

 
9

 
1,336

 
16

Residential land
 
6,534

 
7,381

 
1,048

 
7,168

 
128

 
7,497

 
263

Commercial construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial
 
23,541

 
27,280

 
2,702

 
14,790

 
175

 
13,533

 
227

Consumer
 
15

 
15

 
8

 
15

 
—

 
15

 
—

 
 
$
55,231

 
$
61,495

 
$
5,390

 
$
48,609

 
$
508

 
$
48,926

 
$
917


 
 
December 31, 2014
 
Year ended December 31, 2014
(in thousands)
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
allowance
 
Average
recorded
investment
 
Interest
income
recognized*
With no related allowance recorded
 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
11,654

 
$
12,987

 
$
—

 
$
9,056

 
$
227

Commercial real estate
 
571

 
626

 
—

 
194

 
—

Home equity line of credit
 
363

 
606

 
—

 
402

 
5

Residential land
 
2,344

 
3,200

 
—

 
2,728

 
172

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial
 
8,235

 
11,471

 
—

 
5,204

 
38

Consumer
 
—

 
—

 
—

 
8

 
—

 
 
$
23,167

 
$
28,890

 
$
—

 
$
17,592

 
$
442

With an allowance recorded
 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
11,327

 
$
11,347

 
$
951

 
$
8,822

 
$
419

Commercial real estate
 
4,541

 
4,541

 
1,845

 
3,415

 
478

Home equity line of credit
 
416

 
420

 
46

 
132

 
6

Residential land
 
5,506

 
5,584

 
1,057

 
6,415

 
484

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial
 
4,873

 
5,211

 
760

 
12,089

 
438

Consumer
 
16

 
16

 
6

 
9

 
—

 
 
$
26,679

 
$
27,119

 
$
4,665

 
$
30,882

 
$
1,825

Total
 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
22,981

 
$
24,334

 
$
951

 
$
17,878

 
$
646

Commercial real estate
 
5,112

 
5,167

 
1,845

 
3,609

 
478

Home equity line of credit
 
779

 
1,026

 
46

 
534

 
11

Residential land
 
7,850

 
8,784

 
1,057

 
9,143

 
656

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial
 
13,108

 
16,682

 
760

 
17,293

 
476

Consumer
 
16

 
16

 
6

 
17

 
—

 
 
$
49,846

 
$
56,009

 
$
4,665

 
$
48,474

 
$
2,267

 
*
Since loan was classified as impaired.
Schedule of loan modifications
Loans modified in TDRs that experienced a payment default of 90 days or more in for the indicated periods, and for which the payment of default occurred within one year of the modification, were as follows:
 
 
Three months ended June 30, 2014
 
Six months ended June 30, 2014
(dollars in thousands)
 
Number of contracts
 
Recorded investment
 
Number of contracts
 
Recorded investment
Troubled debt restructurings that
 subsequently defaulted
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 

 
 
 
 

Residential 1-4 family
 
1
 
$
390

 
1
 
$
390

Commercial real estate
 
—
 
—

 
—
 
—

Home equity line of credit
 
—
 
—

 
—
 
—

Residential land
 
—
 
—

 
—
 
—

Commercial construction
 
—
 
—

 
—
 
—

Residential construction
 
—
 
—

 
—
 
—

Commercial loans
 
—
 
—

 
—
 
—

Consumer loans
 
—
 
—

 
—
 
—

 
 
1
 
$
390

 
1
 
$
390

Loan modifications that occurred and the impact on the allowance for loan losses were as follows:
 
 
Three months ended June 30, 2015
 
Six months ended June 30, 2015
 
 
Number of contracts
 
Outstanding recorded 
investment1
 
Net increase in allowance
 
Number of contracts
 
Outstanding recorded 
investment1
 
Net increase in allowance
(dollars in thousands)
 
 
Pre-modification
 
Post-modification
 
(as of period end)
 
 
Pre-modification
 
Post-modification
 
(as of period end)
Troubled debt restructurings
 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 
Real estate:
 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 
Residential 1-4 family
 
2

 
$
318

 
$
318

 
$
—

 
7

 
$
1,195

 
$
1,213

 
$
47

Commercial real estate
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Home equity line of credit
 
13

 
690

 
690

 
105

 
22

 
1,119

 
1,119

 
160

Residential land
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial
 
3

 
161

 
161

 
78

 
4

 
253

 
253

 
78

Consumer
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
18

 
$
1,169

 
$
1,169

 
$
183

 
33

 
$
2,567

 
$
2,585

 
$
285


 
 
Three months ended June 30, 2014
 
Six months ended June 30, 2014
 
 
Number of contracts
 
Outstanding recorded 
investment1
 
Net increase in allowance
 
Number of contracts
 
Outstanding recorded 
investment1
 
Net increase in allowance
(dollars in thousands)
 
 
Pre-modification
 
Post-modification
 
(as of period end)
 
 
Pre-modification
 
Post-modification
 
(as of period end)
Troubled debt restructurings
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
Real estate:
 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 
Residential 1-4 family
 
7

 
$
2,194

 
$
2,212

 
$
207

 
12

 
$
3,115

 
$
3,147

 
$
251

Commercial real estate
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Home equity line of credit
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential land
 
9

 
2,915

 
2,915

 
225

 
16

 
4,048

 
4,048

 
400

Commercial construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial
 
2

 
754

 
754

 
—

 
5

 
1,227

 
1,227

 
14

Consumer
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
18

 
$
5,863

 
$
5,881

 
$
432

 
33

 
$
8,390

 
$
8,422

 
$
665


1 The reported balances include loans that became TDR during the period, and were fully paid-off, charged-off, or sold prior to period end.
Schedule of amortized intangible assets
The carrying values of mortgage servicing assets were as follows:
(in thousands)
 
Gross
carrying amount
 
Accumulated amortization
 
Valuation allowance
 
Net
carrying amount
June 30, 2015
 
$
29,182

 
$
(16,880
)
 
$
(37
)
 
$
12,265

June 30, 2014
 
26,357

 
(14,578
)
 
(174
)
 
11,605

Changes related to mortgage servicing rights were as follows:
(in thousands)
2015

 
2014

Mortgage servicing rights
 
 
 
Balance, January 1
$
11,749

 
$
11,938

Amount capitalized
2,001

 
753

Amortization
(1,444
)
 
(872
)
Other-than-temporary impairment
(4
)
 
(40
)
Carrying amount before valuation allowance, June 30
12,302

 
11,779

Valuation allowance for mortgage servicing rights
 
 
 
Balance, January 1
209

 
251

Provision (recovery)
(168
)
 
(37
)
Other-than-temporary impairment
(4
)
 
(40
)
Balance, June 30
37

 
174

Net carrying value of mortgage servicing rights
$
12,265

 
$
11,605
Schedule of key assumptions used in estimating fair value
Key assumptions used in estimating the fair value of the bank’s mortgage servicing rights were as follows:
(dollars in thousands)
 
June 30, 2015

 
December 31, 2014

Unpaid principal balance
 
$
1,467,492

 
$
1,391,030

Weighted average note rate
 
4.02
%
 
4.07
%
Weighted average discount rate
 
9.5
%
 
9.6
%
Weighted average prepayment speed
 
11.0
%
 
9.5
%
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis:
 
 
 
 
 
 
 
 
 
Significant unobservable
 input value 1
($ in thousands)
 
Fair value
 
Valuation technique
 
Significant unobservable input
 
Range
 
Weighted
Average
June 30, 2015
 
 
 
 
 
 
 
 
 
 
Residential loans
 
$
658

 
Fair value of property or collateral
 
Appraised value less 7% selling costs
 
31-91%
 
66%
Total loans
 
$
658

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
 
Residential loans
 
$
2,297

 
Fair value of property or collateral
 
Appraised value less 7% selling costs
 
39-99%
 
83%
Home equity lines of credit
 
3

 
Fair value of property or collateral
 
Appraised value less 7% selling costs
 
 
 
7%
Commercial loans
 
145

 
Fair value of property or collateral
 
Fair value of business assets
 
 
 
91%
Total loans
 
$
2,445

 
 
 
 
 
 
 
 
Real estate acquired in settlement of loans
 
$
288

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 
100%
 
100%
 1 Represent percent of outstanding principal balance.
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets
The sensitivity analysis of fair value of MSR to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions is as follows:
(dollars in thousands)
 
June 30, 2015

 
December 31, 2014

Prepayment rate:
 
 
 
 
  25 basis points adverse rate change
 
$
(814
)
 
$
(757
)
  50 basis points adverse rate change
 
(1,537
)
 
(1,524
)
Discount rate:
 
 
 
 
  25 basis points adverse rate change
 
(132
)
 
(140
)
  50 basis points adverse rate change
 
(262
)
 
(278
)
Schedule of securities sold under agreements to repurchase
The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties:
(in millions)
 
Gross amount of
recognized liabilities
 
Gross amount offset in
the Balance Sheet
 
Net amount of liabilities presented
in the Balance Sheet
Repurchase agreements
 
 
 
 
 
 
June 30, 2015
 
$214
 
$—
 
$214
December 31, 2014
 
191
 
—
 
191
 
 
Gross amount not offset in the Balance Sheet
(in millions)
 
Net amount of 
liabilities presented
in the Balance Sheet
 
Financial
instruments
 
Cash
collateral
pledged
 
Net amount
June 30, 2015
 
 

 
 

 
 

 
 

Financial institution
 
$
50

 
$
50

 
$
—

 
$
—

Government entities
 
66

 
66

 
—

 
—

Commercial account holders
 
98

 
98

 
—

 
—

Total
 
$
214

 
$
214

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
December 31, 2014
 
 

 
 

 
 

 
 

Financial institution
 
$
50

 
$
50

 
$
—

 
$
—

Government entities
 
56

 
56

 
—

 
—

Commercial account holders
 
85

 
85

 
—

 
—

Total
 
$
191

 
$
191

 
$
—

 
$
—
Schedule of notional and fair value of derivatives
The notional amount and fair value of ASB’s derivative financial instruments were as follows:
 
 
June 30, 2015
 
December 31, 2014
(in thousands)
 
Notional amount
 
Fair value
 
Notional amount
 
Fair value
Interest rate lock commitments
 
$
33,178

 
$
446

 
$
29,330

 
$
390

Forward commitments
 
28,551

 
(7
)
 
32,833

 
(106
)
Schedule of derivative financial instruments
ASB’s derivative financial instruments, their fair values, and balance sheet location were as follows:
Derivative Financial Instruments Not Designated as Hedging Instruments 1
 
June 30, 2015
 
December 31, 2014
(in thousands)
 
 Asset derivatives
 
 Liability
derivatives
 
 Asset derivatives
 
 Liability
derivatives
Interest rate lock commitments
 
$
448

 
$
2

 
$
393

 
$
3

Forward commitments
 
6

 
13

 
5

 
111

 
 
$
454

 
$
15

 
$
398

 
$
114

1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets.
Schedule of derivative financial instruments and net gain or loss
The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in the statements of income:
Derivative Financial Instruments Not Designated as Hedging Instruments
Location of net gains (losses) recognized in the Statement of Income
 
Three months ended 
 June 30
 
Six months  
 ended June 30
(in thousands)
 
2015
 
2014
 
2015
 
2014
Interest rate lock commitments
Mortgage banking income
 
$
(389
)
 
$
(194
)
 
$
56

 
$
(464
)
Forward commitments
Mortgage banking income
 
258

 
(33
)
 
99

 
(139
)
 
 
 
$
(131
)
 
$
(227
)
 
$
155

 
$
(603
)