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Bank segment (HEI only) (Tables)
 12 Months Ended
Dec. 31, 2019
Bank Segment Disclosure [Abstract]  
Schedule of statements of income data
Statements of Income and Comprehensive Income Data
Years ended December 31
2019

 
2018

 
2017

(in thousands)
 

 
 

 
 

Interest and dividend income
 

 
 

 
 

Interest and fees on loans
$
233,632

 
$
220,463

 
$
207,255

Interest and dividends on investment securities
32,922

 
37,762

 
28,823

Total interest and dividend income
266,554

 
258,225

 
236,078

Interest expense
 

 
 

 
 

Interest on deposit liabilities
16,830

 
13,991

 
9,660

Interest on other borrowings
1,610

 
1,548

 
2,496

Total interest expense
18,440

 
15,539

 
12,156

Net interest income
248,114

 
242,686

 
223,922

Provision for loan losses
23,480

 
14,745

 
10,901

Net interest income after provision for loan losses
224,634

 
227,941

 
213,021

Noninterest income
 

 
 

 
 

Fees from other financial services
19,275

 
18,937

 
22,796

Fee income on deposit liabilities
20,877

 
21,311

 
22,204

Fee income on other financial products
6,507

 
7,052

 
7,205

Bank-owned life insurance
7,687

 
5,057

 
5,539

Mortgage banking income
4,943

 
1,493

 
2,201

Gain on sale of real estate
10,762

 
—

 
—

Gains on sale of investment securities, net
653

 
—

 
—

Other income, net
2,074

 
2,200

 
1,617

Total noninterest income
72,778

 
56,050

 
61,562

Noninterest expense
 

 
 

 
 

Compensation and employee benefits
103,009

 
98,387

 
94,931

Occupancy
21,272

 
17,073

 
16,699

Data processing
15,306

 
14,268

 
13,280

Services
10,239

 
10,847

 
10,994

Equipment
8,760

 
7,186

 
7,232

Office supplies, printing and postage
5,512

 
6,134

 
6,182

Marketing
4,490

 
3,567

 
3,501

FDIC insurance
1,204

 
2,713

 
2,904

Other expense
15,586

 
17,238

 
20,144

Total noninterest expense
185,378

 
177,413

 
175,867

Income before income taxes
112,034

 
106,578

 
98,716

Income taxes
23,061

 
24,069

 
31,719

Net income
88,973

 
82,509

 
66,997

Other comprehensive income (loss), net of taxes
29,406

 
(7,119
)
 
(3,139
)
Comprehensive income
$
118,379

 
$
75,390

 
$
63,858




Reconciliation to amounts per HEI Consolidated Statements of Income*:
Years ended December 31
2019

 
2018

 
2017

(in thousands)
 
 
 
 
 
Interest and dividend income
$
266,554

 
$
258,225

 
$
236,078

Noninterest income
72,778

 
56,050

 
61,562

Less: Gain on sale of real estate
(10,762
)
 
—

 
—

*Revenues-Bank
328,570

 
314,275

 
297,640

Total interest expense
18,440

 
15,539

 
12,156

Provision for loan losses
23,480

 
14,745

 
10,901

Noninterest expense
185,378

 
177,413

 
175,867

Less: Retirement defined benefits credit (expense)—other than service costs
472

 
(1,657
)
 
(820
)
Add: Gain on sale of real estate
(10,762
)
 
—

 
—

*Expenses-Bank
217,008

 
206,040

 
198,104

*Operating income-Bank
111,562

 
108,235

 
99,536

Add back: Retirement defined benefits expense (credit)—other than service costs
(472
)
 
1,657

 
820

Income before income taxes
$
112,034

 
$
106,578

 
$
98,716
Schedule of statements of comprehensive income data
Statements of Income and Comprehensive Income Data
Years ended December 31
2019

 
2018

 
2017

(in thousands)
 

 
 

 
 

Interest and dividend income
 

 
 

 
 

Interest and fees on loans
$
233,632

 
$
220,463

 
$
207,255

Interest and dividends on investment securities
32,922

 
37,762

 
28,823

Total interest and dividend income
266,554

 
258,225

 
236,078

Interest expense
 

 
 

 
 

Interest on deposit liabilities
16,830

 
13,991

 
9,660

Interest on other borrowings
1,610

 
1,548

 
2,496

Total interest expense
18,440

 
15,539

 
12,156

Net interest income
248,114

 
242,686

 
223,922

Provision for loan losses
23,480

 
14,745

 
10,901

Net interest income after provision for loan losses
224,634

 
227,941

 
213,021

Noninterest income
 

 
 

 
 

Fees from other financial services
19,275

 
18,937

 
22,796

Fee income on deposit liabilities
20,877

 
21,311

 
22,204

Fee income on other financial products
6,507

 
7,052

 
7,205

Bank-owned life insurance
7,687

 
5,057

 
5,539

Mortgage banking income
4,943

 
1,493

 
2,201

Gain on sale of real estate
10,762

 
—

 
—

Gains on sale of investment securities, net
653

 
—

 
—

Other income, net
2,074

 
2,200

 
1,617

Total noninterest income
72,778

 
56,050

 
61,562

Noninterest expense
 

 
 

 
 

Compensation and employee benefits
103,009

 
98,387

 
94,931

Occupancy
21,272

 
17,073

 
16,699

Data processing
15,306

 
14,268

 
13,280

Services
10,239

 
10,847

 
10,994

Equipment
8,760

 
7,186

 
7,232

Office supplies, printing and postage
5,512

 
6,134

 
6,182

Marketing
4,490

 
3,567

 
3,501

FDIC insurance
1,204

 
2,713

 
2,904

Other expense
15,586

 
17,238

 
20,144

Total noninterest expense
185,378

 
177,413

 
175,867

Income before income taxes
112,034

 
106,578

 
98,716

Income taxes
23,061

 
24,069

 
31,719

Net income
88,973

 
82,509

 
66,997

Other comprehensive income (loss), net of taxes
29,406

 
(7,119
)
 
(3,139
)
Comprehensive income
$
118,379

 
$
75,390

 
$
63,858




Reconciliation to amounts per HEI Consolidated Statements of Income*:
Years ended December 31
2019

 
2018

 
2017

(in thousands)
 
 
 
 
 
Interest and dividend income
$
266,554

 
$
258,225

 
$
236,078

Noninterest income
72,778

 
56,050

 
61,562

Less: Gain on sale of real estate
(10,762
)
 
—

 
—

*Revenues-Bank
328,570

 
314,275

 
297,640

Total interest expense
18,440

 
15,539

 
12,156

Provision for loan losses
23,480

 
14,745

 
10,901

Noninterest expense
185,378

 
177,413

 
175,867

Less: Retirement defined benefits credit (expense)—other than service costs
472

 
(1,657
)
 
(820
)
Add: Gain on sale of real estate
(10,762
)
 
—

 
—

*Expenses-Bank
217,008

 
206,040

 
198,104

*Operating income-Bank
111,562

 
108,235

 
99,536

Add back: Retirement defined benefits expense (credit)—other than service costs
(472
)
 
1,657

 
820

Income before income taxes
$
112,034

 
$
106,578

 
$
98,716
Schedule of balance sheets data
Balance Sheets Data
December 31
 
2019

 
2018

(in thousands)
 
 

 
 

Assets
 
 

 
 

Cash and due from banks
 
$
129,770

 
$
122,059

Interest-bearing deposits
 
48,628

 
4,225

Investment securities
 
 
 
 
Available-for-sale, at fair value
 
1,232,826

 
1,388,533

Held-to-maturity, at amortized cost (fair value of $143,467 and $142,057 at December 31, 2019 and 2018, respectively)
 
139,451

 
141,875

Stock in Federal Home Loan Bank, at cost
 
8,434

 
9,958

Loans held for investment
 
5,121,176

 
4,843,021

Allowance for loan losses
 
(53,355
)
 
(52,119
)
Net loans
 
5,067,821

 
4,790,902

Loans held for sale, at lower of cost or fair value
 
12,286

 
1,805

Other
 
511,611

 
486,347

Goodwill
 
82,190

 
82,190

Total assets
 
$
7,233,017

 
$
7,027,894

Liabilities and shareholder’s equity
 
 

 
 

Deposit liabilities–noninterest-bearing
 
$
1,909,682

 
$
1,800,727

Deposit liabilities–interest-bearing
 
4,362,220

 
4,358,125

Other borrowings
 
115,110

 
110,040

Other
 
146,954

 
124,613

Total liabilities
 
6,533,966

 
6,393,505

Commitments and contingencies
 


 


Common stock
 
1

 
1

Additional paid in capital
 
349,453

 
347,170

Retained earnings
 
358,259

 
325,286

Accumulated other comprehensive loss, net of tax benefits
 
 
 
 
     Net unrealized gains (losses) on securities
$
2,481

 
$
(24,423
)
 
     Retirement benefit plans
(11,143
)
(8,662
)
(13,645
)
(38,068
)
Total shareholder’s equity
 
699,051

 
634,389

Total liabilities and shareholder’s equity
 
$
7,233,017

 
$
7,027,894



December 31
 
2019

 
2018

(in thousands)
 
 

 
 

Other assets
 
 

 
 

Bank-owned life insurance
 
$
157,465

 
$
151,172

Premises and equipment, net
 
204,449

 
214,415

Accrued interest receivable
 
19,365

 
20,140

Mortgage servicing rights
 
9,101

 
8,062

Low-income housing investments
 
66,302

 
67,626

Real estate acquired in settlement of loans, net
 
—

 
406

Other
 
54,929

 
24,526

 
 
$
511,611

 
$
486,347

Other liabilities
 
 

 
 

Accrued expenses
 
$
45,822

 
$
54,084

Federal and state income taxes payable
 
14,996

 
2,012

Cashier’s checks
 
23,647

 
26,906

Advance payments by borrowers
 
10,486

 
10,183

Other
 
52,003

 
31,428

 
 
$
146,954

 
$
124,613
Schedule of the book value and aggregate fair value by major security type The major components of investment securities were as follows:
 
 
 
 
 
 
 
 
 
Gross unrealized losses
 
 
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated fair value
 
Less than 12 months
 
12 months or longer
(dollars in thousands)
Amortized
cost
 
 
 
 
Number of issues
 
Fair value
 
Amount
 
Number of issues
 
Fair value
 
Amount
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

U.S. Treasury and federal agency obligations
$
117,255

 
$
652

 
$
(120
)
 
$
117,787

 
2
 
$
4,110

 
$
(11
)
 
3
 
$
27,637

 
$
(109
)
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
1,024,892

 
6,000

 
(4,507
)
 
1,026,385

 
19
 
152,071

 
(819
)
 
75
 
318,020

 
(3,688
)
Corporate bonds
58,694

 
1,363

 
—

 
60,057

 
—
 
—

 
—

 
—
 
—

 
—

Mortgage revenue bonds
28,597

 
—

 
—

 
28,597

 
—
 
—

 
—

 
—
 
—

 
—

 
$
1,229,438

 
$
8,015

 
$
(4,627
)
 
$
1,232,826

 
21
 
$
156,181

 
$
(830
)
 
78
 
$
345,657

 
$
(3,797
)
Held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
$
139,451

 
$
4,087

 
$
(71
)
 
$
143,467

 
1
 
$
12,986

 
$
(71
)
 
—
 
$
—

 
$
—

 
$
139,451

 
$
4,087

 
$
(71
)
 
$
143,467

 
1
 
$
12,986

 
$
(71
)
 
—
 
$
—

 
$
—


 
 
 
 
 
 
 
 
 
Gross unrealized losses
 
 
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated fair value
 
Less than 12 months
 
12 months or longer
(dollars in thousands)
Amortized
cost
 
 
 
 
Number of issues
 
Fair value
 
Amount
 
Number of issues
 
Fair value
 
Amount
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

U.S. Treasury and federal agency obligations
$
156,694

 
$
62

 
$
(2,407
)
 
$
154,349

 
5
 
$
25,882

 
$
(208
)
 
19
 
$
118,405

 
$
(2,199
)
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
1,192,169

 
789

 
(31,542
)
 
1,161,416

 
22
 
129,011

 
(1,330
)
 
145
 
947,890

 
(30,212
)
Corporate bonds
49,398

 
103

 
(369
)
 
49,132

 
6
 
23,175

 
(369
)
 
—
 
—

 
—

Mortgage revenue bond
23,636

 
—

 
—

 
23,636

 
—
 
—

 
—

 
—
 
—

 
—

 
$
1,421,897

 
$
954

 
$
(34,318
)
 
$
1,388,533

 
33
 
$
178,068

 
$
(1,907
)
 
164
 
$
1,066,295

 
$
(32,411
)
Held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
$
141,875

 
$
1,446

 
$
(1,264
)
 
$
142,057

 
3
 
$
29,814

 
$
(400
)
 
2
 
$
31,505

 
$
(864
)
 
$
141,875

 
$
1,446

 
$
(1,264
)
 
$
142,057

 
3
 
$
29,814

 
$
(400
)
 
2
 
$
31,505

 
$
(864
)
Schedule of contractual maturities of available-for-sale securities
The contractual maturities of investment securities were as follows:
 
Amortized
 
Fair
December 31, 2019
Cost
 
value
(in thousands)
 
 
 
Available-for-sale
 
 
 
Due in one year or less
$
60,200

 
$
60,249

Due after one year through five years
75,694

 
77,225

Due after five years through ten years
53,225

 
53,540

Due after ten years
15,427

 
15,427

 
204,546

 
206,441

Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
1,024,892

 
1,026,385

Total available-for-sale securities
$
1,229,438

 
$
1,232,826

Held-to-maturity
 
 
 
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
$
139,451

 
$
143,467

Total held-to-maturity securities
$
139,451

 
$
143,467
Schedule of proceeds, gains and losses from sales of available for sale investment securities
The proceeds, gross gains and losses from sales of available-for-sale securities were as follows:
Years ended December 31
2019

 
2018

 
2017

(in millions)
 
 
 
 
 
Proceeds
$
19.8

 
$
—

 
$
—

Gross gains
0.7

 
—

 
—

Gross losses
—

 
—

 
—
Schedule of interest income from available for sale investment securities
Interest income from taxable and non-taxable investment securities were as follows:
Years ended December 31
2019

 
2018

 
2017

(in thousands)
 
 
 
 
 
Taxable
$
31,847

 
$
37,153

 
$
28,398

Non-taxable
1,074

 
609

 
425

 
$
32,921

 
$
37,762

 
$
28,823
Schedule of loans receivable The components of loans were summarized as follows:
December 31
2019

 
2018

(in thousands)
 

 
 

Real estate:
 

 
 

Residential 1-4 family
$
2,178,135

 
$
2,143,397

Commercial real estate
824,830

 
748,398

Home equity line of credit
1,092,125

 
978,237

Residential land
14,704

 
13,138

Commercial construction
70,605

 
92,264

Residential construction
11,670

 
14,307

Total real estate
4,192,069

 
3,989,741

Commercial
670,674

 
587,891

Consumer
257,921

 
266,002

Total loans
5,120,664

 
4,843,634

Less: Deferred fees and discounts
512

 
(613
)
Allowance for loan losses
(53,355
)
 
(52,119
)
Total loans, net
$
5,067,821

 
$
4,790,902
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
 
Consumer
 
Total
December 31, 2019
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
1,976

 
$
14,505

 
$
6,371

 
$
479

 
$
2,790

 
$
4

 
$
9,225

 
$
16,769

 
$
52,119

Charge-offs
(26
)
 
—

 
(144
)
 
(4
)
 
—

 
—

 
(6,811
)
 
(21,677
)
 
(28,662
)
Recoveries
854

 
—

 
17

 
229

 
—

 
—

 
2,351

 
2,967

 
6,418

Provision
(424
)
 
548

 
678

 
(255
)
 
(693
)
 
(1
)
 
5,480

 
18,147

 
23,480

Ending balance
$
2,380

 
$
15,053

 
$
6,922

 
$
449

 
$
2,097

 
$
3

 
$
10,245

 
$
16,206

 
$
53,355

Ending balance: individually evaluated for impairment
$
898

 
$
2

 
$
322

 
$
—

 
$
—

 
$
—

 
$
1,015

 
$
454

 
$
2,691

Ending balance: collectively evaluated for impairment
$
1,482

 
$
15,051

 
$
6,600

 
$
449

 
$
2,097

 
$
3

 
$
9,230

 
$
15,752

 
$
50,664

Financing Receivables:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
2,178,135

 
$
824,830

 
$
1,092,125

 
$
14,704

 
$
70,605

 
$
11,670

 
$
670,674

 
$
257,921

 
$
5,120,664

Ending balance: individually evaluated for impairment
$
15,600

 
$
1,048

 
$
12,073

 
$
3,091

 
$
—

 
$
—

 
$
8,418

 
$
507

 
$
40,737

Ending balance: collectively evaluated for impairment
$
2,162,535

 
$
823,782

 
$
1,080,052

 
$
11,613

 
$
70,605

 
$
11,670

 
$
662,256

 
$
257,414

 
$
5,079,927

December 31, 2018
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
2,902

 
$
15,796

 
$
7,522

 
$
896

 
$
4,671

 
$
12

 
$
10,851

 
$
10,987

 
$
53,637

Charge-offs
(128
)
 
—

 
(353
)
 
(18
)
 
—

 
—

 
(2,722
)
 
(17,296
)
 
(20,517
)
Recoveries
74

 
—

 
257

 
179

 
—

 
—

 
2,136

 
1,608

 
4,254

Provision
(872
)
 
(1,291
)
 
(1,055
)
 
(578
)
 
(1,881
)
 
(8
)
 
(1,040
)
 
21,470

 
14,745

Ending balance
$
1,976

 
$
14,505

 
$
6,371

 
$
479

 
$
2,790

 
$
4

 
$
9,225

 
$
16,769

 
$
52,119

Ending balance: individually evaluated for impairment
$
876

 
$
7

 
$
701

 
$
6

 
$
—

 
$
—

 
$
628

 
$
4

 
$
2,222

Ending balance: collectively evaluated for impairment
$
1,100

 
$
14,498

 
$
5,670

 
$
473

 
$
2,790

 
$
4

 
$
8,597

 
$
16,765

 
$
49,897

Financing Receivables:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
2,143,397

 
$
748,398

 
$
978,237

 
$
13,138

 
$
92,264

 
$
14,307

 
$
587,891

 
$
266,002

 
$
4,843,634

Ending balance: individually evaluated for impairment
$
16,494

 
$
915

 
$
14,800

 
$
2,059

 
$
—

 
$
—

 
$
5,340

 
$
89

 
$
39,697

Ending balance: collectively evaluated for impairment
$
2,126,903

 
$
747,483

 
$
963,437

 
$
11,079

 
$
92,264

 
$
14,307

 
$
582,551

 
$
265,913

 
$
4,803,937

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
2,873

 
$
16,004

 
$
5,039

 
$
1,738

 
$
6,449

 
$
12

 
$
16,618

 
$
6,800

 
$
55,533

Charge-offs
(826
)
 
—

 
(14
)
 
(210
)
 
—

 
—

 
(4,006
)
 
(11,757
)
 
(16,813
)
Recoveries
157

 
—

 
308

 
482

 
—

 
—

 
1,852

 
1,217

 
4,016

Provision
698

 
(208
)
 
2,189

 
(1,114
)
 
(1,778
)
 
—

 
(3,613
)
 
14,727

 
10,901

Ending balance
$
2,902

 
$
15,796

 
$
7,522

 
$
896

 
$
4,671

 
$
12

 
$
10,851

 
$
10,987

 
$
53,637

Ending balance: individually evaluated for impairment
$
1,248

 
$
65

 
$
647

 
$
47

 
$
—

 
$
—

 
$
694

 
$
29

 
$
2,730

Ending balance: collectively evaluated for impairment
$
1,654

 
$
15,731

 
$
6,875

 
$
849

 
$
4,671

 
$
12

 
$
10,157

 
$
10,958

 
$
50,907

Financing Receivables:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance
$
2,118,047

 
$
733,106

 
$
913,052

 
$
15,797

 
$
108,273

 
$
14,910

 
$
544,828

 
$
223,564

 
$
4,671,577

Ending balance: individually evaluated for impairment
$
18,284

 
$
1,016

 
$
8,188

 
$
1,265

 
$
—

 
$
—

 
$
4,574

 
$
66

 
$
33,393

Ending balance: collectively evaluated for impairment
$
2,099,763

 
$
732,090

 
$
904,864

 
$
14,532

 
$
108,273

 
$
14,910

 
$
540,254

 
$
223,498

 
$
4,638,184
Schedule of credit risk profile by internally assigned grade for loans
The credit risk profile by internally assigned grade for loans was as follows:
December 31
2019
 
2018
(in thousands)
Commercial
real estate
 
Commercial
construction
 
Commercial
 
Total
 
Commercial
real estate
 
Commercial
construction
 
Commercial
 
Total
Grade:
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 
Pass
$
756,747

 
$
68,316

 
$
621,657

 
$
1,446,720

 
$
658,288

 
$
89,974

 
$
547,640

 
$
1,295,902

Special mention
4,451

 
—

 
29,921

 
34,372

 
32,871

 
—

 
11,598

 
44,469

Substandard
63,632

 
2,289

 
19,096

 
85,017

 
57,239

 
2,290

 
28,653

 
88,182

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
824,830

 
$
70,605

 
$
670,674

 
$
1,566,109

 
$
748,398

 
$
92,264

 
$
587,891

 
$
1,428,553
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
December 31, 2019
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
$
2,588

 
$
290

 
$
1,808

 
$
4,686

 
$
2,173,449

 
$
2,178,135

 
$
—

Commercial real estate
—

 
—

 
—

 
—

 
824,830

 
824,830

 
—

Home equity line of credit
813

 
—

 
2,117

 
2,930

 
1,089,195

 
1,092,125

 
—

Residential land
—

 
—

 
25

 
25

 
14,679

 
14,704

 
—

Commercial construction
—

 
—

 
—

 
—

 
70,605

 
70,605

 
—

Residential construction
—

 
—

 
—

 
—

 
11,670

 
11,670

 
—

Commercial
1,077

 
311

 
172

 
1,560

 
669,114

 
670,674

 
—

Consumer
4,386

 
3,257

 
2,907

 
10,550

 
247,371

 
257,921

 
—

Total loans
$
8,864

 
$
3,858

 
$
7,029

 
$
19,751

 
$
5,100,913

 
$
5,120,664

 
$
—

December 31, 2018
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
$
3,757

 
$
2,773

 
$
2,339

 
$
8,869

 
$
2,134,528

 
$
2,143,397

 
$
—

Commercial real estate
—

 
—

 
—

 
—

 
748,398

 
748,398

 
—

Home equity line of credit
1,139

 
681

 
2,720

 
4,540

 
973,697

 
978,237

 
—

Residential land
9

 
—

 
319

 
328

 
12,810

 
13,138

 
—

Commercial construction
—

 
—

 
—

 
—

 
92,264

 
92,264

 
—

Residential construction
—

 
—

 
—

 
—

 
14,307

 
14,307

 
—

Commercial
315

 
281

 
548

 
1,144

 
586,747

 
587,891

 
—

Consumer
5,220

 
3,166

 
2,702

 
11,088

 
254,914

 
266,002

 
—

Total loans
$
10,440

 
$
6,901

 
$
8,628

 
$
25,969

 
$
4,817,665

 
$
4,843,634

 
$
—
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:
 
Nonaccrual loans
 
Accruing loans 90 days or more past due
 
Troubled debt restructured loans not included in nonaccrual loans
December 31
2019

 
2018

 
2019

 
2018

 
2019

 
2018

(in thousands)
 
 
 
 
 
 
 
 
 
 
 
Real estate:
 

 
 

 
 
 
 
 
 
 
 
Residential 1-4 family
$
11,395

 
$
12,037

 
$
—

 
$
—

 
$
9,869

 
$
10,194

Commercial real estate
195

 
—

 
—

 
—

 
853

 
915

Home equity line of credit
6,638

 
6,348

 
—

 
—

 
10,376

 
11,597

Residential land
448

 
436

 
—

 
—

 
2,644

 
1,622

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

Commercial
5,947

 
4,278

 
—

 
—

 
2,614

 
1,527

Consumer
5,113

 
4,196

 
—

 
—

 
57

 
62

Total
$
29,736

 
$
27,295

 
$
—

 
$
—

 
$
26,413

 
$
25,917
Schedule of the carrying amount and the total unpaid principal balance of impaired loans
The total carrying amount and the total unpaid principal balance of impaired loans were as follows:
December 31
2019
 
2018
(in thousands)
Recorded
investment
 
Unpaid
principal
balance
 
Related
allowance
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
allowance
With no related allowance recorded
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
$
6,817

 
$
7,207

 
$
—

 
$
7,822

 
$
8,333

 
$
—

Commercial real estate
195

 
200

 
—

 
—

 
—

 
—

Home equity line of credit
1,984

 
2,135

 
—

 
2,743

 
3,004

 
—

Residential land
3,091

 
3,294

 
—

 
2,030

 
2,228

 
—

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

Commercial
1,948

 
2,285

 
—

 
3,722

 
4,775

 
—

Consumer
2

 
2

 
—

 
32

 
32

 
—

 
14,037

 
15,123

 
—

 
16,349

 
18,372

 
—

With an allowance recorded
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
8,783

 
8,835

 
898

 
8,672

 
8,875

 
876

Commercial real estate
853

 
853

 
2

 
915

 
915

 
7

Home equity line of credit
10,089

 
10,099

 
322

 
12,057

 
12,086

 
701

Residential land
—

 
—

 
—

 
29

 
29

 
6

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

Commercial
6,470

 
6,470

 
1,015

 
1,618

 
1,618

 
628

Consumer
505

 
505

 
454

 
57

 
57

 
4

 
26,700

 
26,762

 
2,691

 
23,348

 
23,580

 
2,222

Total
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
15,600

 
16,042

 
898

 
16,494

 
17,208

 
876

Commercial real estate
1,048

 
1,053

 
2

 
915

 
915

 
7

Home equity line of credit
12,073

 
12,234

 
322

 
14,800

 
15,090

 
701

Residential land
3,091

 
3,294

 
—

 
2,059

 
2,257

 
6

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

Commercial
8,418

 
8,755

 
1,015

 
5,340

 
6,393

 
628

Consumer
507

 
507

 
454

 
89

 
89

 
4

 
$
40,737

 
$
41,885

 
$
2,691

 
$
39,697

 
$
41,952

 
$
2,222


ASB’s average recorded investment of, and interest income recognized from, impaired loans were as follows:
December 31
2019
 
2018
 
2017
(in thousands)
Average
recorded
investment
 
Interest
income
recognized*
 
Average
recorded
investment
 
Interest
income
recognized*
 
Average
recorded
investment
 
Interest
income
recognized*
With no related allowance recorded
 

 
 

 
 

 
 

 
 
 
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
Residential 1-4 family
$
8,169

 
$
907

 
$
8,595

 
$
445

 
$
9,440

 
$
316

Commercial real estate
16

 
—

 
—

 
—

 
91

 
11

Home equity line of credit
2,020

 
84

 
2,206

 
75

 
1,976

 
101

Residential land
2,662

 
129

 
1,532

 
40

 
1,094

 
117

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

Commercial
4,534

 
276

 
3,275

 
28

 
2,776

 
54

Consumer
21

 
4

 
22

 
—

 
1

 
—

 
17,422

 
1,400

 
15,630

 
588

 
15,378

 
599

With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
Residential 1-4 family
8,390

 
359

 
8,878

 
363

 
9,818

 
493

Commercial real estate
886

 
37

 
982

 
42

 
1,241

 
54

Home equity line of credit
11,319

 
567

 
10,617

 
440

 
5,045

 
251

Residential land
27

 
—

 
37

 
3

 
1,308

 
97

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

Commercial
6,990

 
132

 
1,789

 
122

 
3,691

 
723

Consumer
360

 
24

 
57

 
4

 
57

 
3

 
27,972

 
1,119

 
22,360

 
974

 
21,160

 
1,621

Total
 
 
 
 
 
 
 
 
 
 
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
Residential 1-4 family
16,559

 
1,266

 
17,473

 
808

 
19,258

 
809

Commercial real estate
902

 
37

 
982

 
42

 
1,332

 
65

Home equity line of credit
13,339

 
651

 
12,823

 
515

 
7,021

 
352

Residential land
2,689

 
129

 
1,569

 
43

 
2,402

 
214

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

Commercial
11,524

 
408

 
5,064

 
150

 
6,467

 
777

Consumer
381

 
28

 
79

 
4

 
58

 
3

 
$
45,394

 
$
2,519

 
$
37,990

 
$
1,562

 
$
36,538

 
$
2,220

* Since loan was classified as impaired.
Schedule of loan modifications
Loan modifications that occurred during 2019, 2018, and 2017 were as follows:
Years ended
December 31, 2019
 
December 31, 2018
(dollars in thousands)
Number of contracts
 
Outstanding 
recorded 
investment
 (as of period end)1
 
Related allowance
(as of period end)
 
Number of contracts
 
Outstanding 
recorded 
investment
 (as of period end)1
 
Related allowance
(as of period end)
Real estate:
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
11

 
$
1,770

 
$
190

 
3

 
$
566

 
$
26

Commercial real estate
—

 
—

 
—

 
—

 
—

 
—

Home equity line of credit
3

 
442

 
73

 
53

 
6,659

 
578

Residential land
3

 
1,086

 
—

 
2

 
1,338

 
—

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

Commercial
8

 
5,523

 
417

 
12

 
2,165

 
211

Consumer
—

 
—

 
—

 
—

 
—

 
—

 
25

 
$
8,821

 
$
680

 
70

 
$
10,728

 
$
815

 
 
 
 
 
 
 
 
 
 
 
 
Year ended
December 31, 2017
 
 
 
 
 
 
(dollars in thousands)
Number of contracts

 
Outstanding 
recorded 
investment
 (as of period end)1

 
Related allowance
(as of period end)

 
 
 
 
 
 
  Real estate:
 
 
 
 
 
 
 
 
 
 
 
Residential 1-4 family
3

 
$
469

 
$
65

 
 
 
 
 
 
Commercial real estate
—

 
—

 
—

 
 
 
 
 
 
Home equity line of credit
44

 
2,791

 
545

 
 
 
 
 
 
Residential land
1

 
92

 
—

 
 
 
 
 
 
Commercial construction
—

 
—

 
—

 
 
 
 
 
 
Residential construction
—

 
—

 
—

 
 
 
 
 
 
Commercial
8

 
525

 
250

 
 
 
 
 
 
Consumer
1

 
58

 
29

 
 
 
 
 
 
 
57

 
$
3,935

 
$
889

 
 
 
 
 
 

1
The period end balances reflect all paydowns and charge-offs since the modification period. TDRs fully paid off, charged-off, or foreclosed upon by period end are not included.
Schedule of loans modified in TDRS that experienced a payment default of 90 days or more, and for which payment default occurred within one year of the modification
Loans modified in TDRs that experienced a payment default of 90 days or more in 2019, 2018, and 2017 and for which the payment default occurred within one year of the modification, were as follows:
Years ended December 31
2019
 
2018
 
2017
(dollars in thousands)
Number of
 contracts
 
Recorded
investment
 
Number of
 contracts
 
Recorded
investment
 
Number of
contracts
 
Recorded
investment
Troubled debt restructurings that subsequently defaulted
 
 

 
 

 
 

 
 
 
 
Real estate:
 

 
 

 
 

 
 

 
 
 
 
Residential 1-4 family
—

 
$
—

 
—

 
$
—

 
1

 
$
222

Commercial real estate
—

 
—

 
—

 
—

 
—

 
—

Home equity line of credit
—

 
—

 
1

 
81

 
—

 
—

Residential land
—

 
—

 
—

 
—

 
—

 
—

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

Commercial
—

 
—

 
1

 
246

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
—

 
2

 
$
327

 
1

 
$
222
Schedule of amortized intangible assets
Changes in the carrying value of MSRs were as follows:
(in thousands)
Gross
carrying amount1
 
Accumulated amortization1
 
Valuation allowance
 
Net
carrying amount
December 31, 2019
$
21,543

 
$
(12,442
)
 
$
—

 
$
9,101

December 31, 2018
$
18,556

 
$
(10,494
)
 
$
—

 
$
8,062

1 Reflects impact of loans paid in full.

Changes related to MSRs were as follows:
(in thousands)
2019

 
2018

 
2017

Mortgage servicing rights
 
 
 
 
 
Balance, January 1
$
8,062

 
$
8,639

 
$
9,373

Amount capitalized
2,987

 
1,045

 
1,239

Amortization
(1,948
)
 
(1,622
)
 
(1,973
)
Sale of mortgage servicing rights
—

 
—

 
—

Other-than-temporary impairment
—

 
—

 
—

Carrying amount before valuation allowance, December 31
9,101

 
8,062

 
8,639

Valuation allowance for mortgage servicing rights
 
 
 
 
 
Balance, January 1
—

 
—

 
—

Provision (recovery)
—

 
—

 
—

Other-than-temporary impairment
—

 
—

 
—

Balance, December 31
—

 
—

 
—

Net carrying value of mortgage servicing rights
$
9,101

 
$
8,062

 
$
8,639
Schedule of key assumptions used in estimating fair value
Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows:
December 31
2019

 
2018

(dollars in thousands)
 
 
 
Unpaid principal balance
$
1,276,437

 
$
1,188,514

Weighted average note rate
3.96
%
 
3.98
%
Weighted average discount rate
9.3
%
 
10.0
%
Weighted average prepayment speed
11.4
%
 
6.5
%

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)
(dollars in thousands)
Fair value
 
Valuation technique
 
Significant unobservable input
 
Range
 
Weighted
Average
December 31, 2019
 
 
 
 
 
 
 
 
 
Residential land
$
25

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 
N/A (2)
 
N/A (2)
Total loans
$
25

 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
Home equity lines of credit
77

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 
N/A (2)
 
N/A (2)
Total loans
$
77

 
 
 
 
 
 
 
 
Real estate acquired in settlement of loans
$
186

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 
N/A (2)
 
N/A (2)

(1)
Represent percent of outstanding principal balance.
(2) N/A - Not applicable. There is one asset in each fair value measurement type.
Schedule of sensitivity analysis of fair value of MSR to hypothetical adverse changes
The sensitivity analysis of fair value of MSRs to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows:
December 31
2019

 
2018

(in thousands)
 
 
 
Prepayment rate:
 
 
 
25 basis points adverse rate change
$
(950
)
 
$
(250
)
50 basis points adverse rate change
(1,947
)
 
(566
)
Discount rate:
 
 
 
25 basis points adverse rate change
(102
)
 
(139
)
50 basis points adverse rate change
(202
)
 
(275
)
Schedule of deposit liabilities The summarized components of deposit liabilities were as follows:
December 31
2019
 
2018
(dollars in thousands)
Weighted-average stated rate

 
Amount

 
Weighted-average stated rate

 
Amount 

Savings
0.09
%
 
$
2,379,522

 
0.07
%
 
$
2,322,552

Checking
 
 
 
 
 

 
 

Interest-bearing
0.09

 
1,062,122

 
0.09

 
1,055,019

Noninterest-bearing
—

 
977,459

 
—

 
932,608

Commercial checking
—

 
932,223

 
—

 
868,119

Money market
0.69

 
150,751

 
0.63

 
152,713

Time certificates
1.42

 
769,825

 
1.61

 
827,841

 
0.24
%
 
$
6,271,902

 
0.27
%
 
$
6,158,852
Schedule of maturities of term certificates
The approximate scheduled maturities of time certificates outstanding at December 31, 2019 were as follows:
(in thousands)
 
2020
$
503,214

2021
112,632

2022
87,132

2023
29,134

2024
35,253

Thereafter
2,460

 
$
769,825
Schedule of interest expense on deposit liabilities by type
Interest expense on deposit liabilities by type of deposit was as follows:
Years ended December 31
2019

 
2018

 
2017

(in thousands)
 
 
 
 
 
Time certificates
$
12,675

 
$
11,044

 
$
7,687

Savings
1,904

 
1,639

 
1,567

Money market
953

 
602

 
168

Interest-bearing checking
1,298

 
706

 
238

 
$
16,830

 
$
13,991

 
$
9,660
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 Sheets
 
Net amount of
 liabilities presented
in the Balance Sheets
Repurchase agreements
 
 

 
 

 
 

December 31, 2019
 
$
115

 
$
—

 
$
115

December 31, 2018
 
65

 
—

 
65

 
 
 
Gross amount not offset in the Balance Sheets
(in millions)
 
Net amount of 
liabilities presented
in the Balance Sheets
 
Financial
instruments
 
Cash
collateral
pledged
Commercial account holders
 
 

 
 

 
 

December 31, 2019
 
$
115

 
$
130

 
$
—

December 31, 2018
 
65

 
92

 
—


Securities sold under agreements to repurchase were summarized as follows:
December 31
2019
 
2018
Maturity
Repurchase liability

 
Weighted-average
interest rate

 
Collateralized by
 mortgage-backed
securities and federal
agency obligations at fair value plus
 accrued interest

 
Repurchase liability

 
Weighted-average
interest rate

 
Collateralized by
mortgage-backed
securities and federal
agency obligations at fair value plus
accrued interest

(dollars in thousands)
 

 
 

 
 

 
 
 
 
 
 
Overnight
$
115,110

 
0.98
%
 
$
129,527

 
$
65,040

 
0.75
%
 
$
92,290

1 to 29 days
—

 
—

 
—

 
—

 
—

 
—

30 to 90 days
—

 
—

 
—

 
—

 
—

 
—

Over 90 days
—

 
—

 
—

 
—

 
—

 
—

 
$
115,110

 
0.98
%
 
$
129,527

 
$
65,040

 
0.75
%
 
$
92,290
Schedule of securities sold under agreements to repurchase, which provided for repurchase of identical securities
Information concerning securities sold under agreements to repurchase, which provided for the repurchase of identical securities, was as follows:
(dollars in millions)
2019

 
2018

 
2017

Amount outstanding as of December 31
$
115

 
$
65

 
$
141

Average amount outstanding during the year
$
80

 
$
99

 
$
98

Maximum amount outstanding as of any month-end
$
115

 
$
152

 
$
141

Weighted-average interest rate as of December 31
0.98
%
 
0.75
%
 
0.65
%
Weighted-average interest rate during the year
0.96
%
 
0.71
%
 
0.26
%
Weighted-average remaining days to maturity as of December 31
1

 
1

 
1
Schedule of actual and minimum required capital amounts and ratios
The tables below set forth actual and minimum required capital amounts and ratios:
 
Actual
 
Minimum required
 
Required to be well capitalized
(dollars in thousands)
Capital
 
Ratio
 
Capital
 
Ratio
 
Capital
 
Ratio
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Tier 1 leverage
641,547

 
9.06
%
 
283,122

 
4.00
%
 
353,903

 
5.00
%
Common equity tier 1
641,547

 
13.18
%
 
219,071

 
4.50
%
 
316,435

 
6.50
%
Tier 1 capital
641,547

 
13.18
%
 
292,094

 
6.00
%
 
389,459

 
8.00
%
Total capital
696,643

 
14.31
%
 
389,459

 
8.00
%
 
486,823

 
10.00
%
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Tier 1 leverage
606,291

 
8.70
%
 
278,811

 
4.00
%
 
348,514

 
5.00
%
Common equity tier 1
606,291

 
12.80
%
 
213,190

 
4.50
%
 
307,941

 
6.50
%
Tier 1 capital
606,291

 
12.80
%
 
284,253

 
6.00
%
 
379,004

 
8.00
%
Total capital
660,151

 
13.93
%
 
379,004

 
8.00
%
 
473,755

 
10.00
%
Schedule of notional amounts and fair value of derivatives
The notional amount and fair value of ASB’s derivative financial instruments were as follows:
December 31
2019
 
2018
(in thousands)
Notional amount
 
Fair value
 
Notional amount
 
Fair value
Interest rate lock commitments
$
23,171

 
$
297

 
$
10,180

 
$
91

Forward commitments
29,383

 
(42
)
 
10,132

 
(43
)
Schedule of derivative financial instruments, fair values, and balance sheet location
ASB’s derivative financial instruments, their fair values, and balance sheet location were as follows:
Derivative Financial Instruments Not Designated
 
 
 
 
 
 
 
as Hedging Instruments 1
 
 
 
 
 
 
 
December 31
2019
 
2018
(in thousands)
Asset derivatives
 
Liability derivatives
 
Asset derivatives
 
Liability derivatives
Interest rate lock commitments
$
297

 
$
—

 
$
91

 
$
—

Forward commitments
3

 
45

 
—

 
43

 
$
300

 
$
45

 
$
91

 
$
43

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 amount and location of net gains or losses
The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in ASB’s statements of income:
Derivative Financial Instruments Not Designated
Location of net gains
 
 
 
 
 
 
as Hedging Instruments
(losses) recognized in
 
Years ended December 31
(in thousands)
the Statements of Income
 
2019
 
2018
 
2017
Interest rate lock commitments
Mortgage banking income
 
$
206

 
$
(40
)
 
$
(290
)
Forward commitments
Mortgage banking income
 
1

 
(19
)
 
153

 

 
$
207

 
$
(59
)
 
$
(137
)
Schedule of off balance sheet arrangements
The following is a summary of outstanding off-balance sheet arrangements:
December 31
2019

 
2018

(in thousands)
 
 
 
Unfunded commitments to extend credit:
 

 
 
Home equity line of credit
$
1,290,854

 
$
1,242,804

Commercial and commercial real estate
484,806

 
515,058

Consumer
70,088

 
70,292

Residential 1-4 family
21,131

 
17,552

Commercial and financial standby letters of credit
11,912

 
13,340

Total
$
1,878,791

 
$
1,859,046