Bank segment (Tables)

6 Months Ended

Jun. 30, 2022

Bank Subsidiary [Abstract]

Schedule of statements of income data

Condensed Consolidating Statement of Income

Three months ended June 30, 2022

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	576,472	124,502	117,928	—	(29)	$	818,873
Expenses
Fuel oil	184,297		33,065	52,293	—	—	269,655
Purchased power	165,202		38,735	14,148	—	—	218,085
Other operation and maintenance	82,707		21,331	20,854	—	—	124,892
Depreciation	39,501		10,352	8,886	—	—	58,739
Taxes, other than income taxes	54,025		11,378	10,945	—	—	76,348
Total expenses	525,732		114,861	107,126	—	—	747,719
Operating income	50,740		9,641	10,802	—	(29)	71,154
Allowance for equity funds used during construction	1,946		217	307	—	—	2,470
Equity in earnings of subsidiaries	12,237		—	—	—	(12,237)	—
Retirement defined benefits credit (expense)—other than service costs	856		167	(32)	—	—	991
Interest expense and other charges, net	(13,519)		(2,642)	(2,668)	—	29	(18,800)
Allowance for borrowed funds used during construction	637		67	94	—	—	798
Income before income taxes	52,897		7,450	8,503	—	(12,237)	56,613
Income taxes	8,492		1,659	1,828	—	—	11,979
Net income	44,405		5,791	6,675	—	(12,237)	44,634
Preferred stock dividends of subsidiaries	—		133	96	—	—	229
Net income attributable to Hawaiian Electric	44,405		5,658	6,579	—	(12,237)	44,405
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	44,135	5,658	6,579	—	(12,237)	$	44,135

Condensed Consolidating Statement of Income

Three months ended June 30, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	422,697	91,512	87,670	—	—	$	601,879
Expenses
Fuel oil	91,345		19,586	28,205	—	—	139,136
Purchased power	124,948		24,236	13,281	—	—	162,465
Other operation and maintenance	77,903		19,474	20,765	—	—	118,142
Depreciation	38,907		10,053	8,421	—	—	57,381
Taxes, other than income taxes	40,301		8,539	8,231	—	—	57,071
Total expenses	373,404		81,888	78,903	—	—	534,195
Operating income	49,293		9,624	8,767	—	—	67,684
Allowance for equity funds used during construction	1,930		140	307	—	—	2,377
Equity in earnings of subsidiaries	10,744		—	—	—	(10,744)	—
Retirement defined benefits credit (expense)—other than service costs	884		169	(33)	—	—	1,020
Interest expense and other charges, net	(12,829)		(2,573)	(2,593)	—	—	(17,995)
Allowance for borrowed funds used during construction	654		48	110	—	—	812
Income before income taxes	50,676		7,408	6,558	—	(10,744)	53,898
Income taxes	8,505		1,668	1,325	—	—	11,498
Net income	42,171		5,740	5,233	—	(10,744)	42,400
Preferred stock dividends of subsidiaries	—		133	96	—	—	229
Net income attributable to Hawaiian Electric	42,171		5,607	5,137	—	(10,744)	42,171
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	41,901	5,607	5,137	—	(10,744)	$	41,901

Condensed Consolidating Statement of Income

Six months ended June 30, 2022

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	1,076,714	233,030	217,956	—	(35)	$	1,527,665
Expenses
Fuel oil	338,722		58,316	93,903	—	—	490,941
Purchased power	289,385		69,447	22,786	—	—	381,618
Other operation and maintenance	166,363		41,545	42,241	—	—	250,149
Depreciation	78,985		20,703	17,522	—	—	117,210
Taxes, other than income taxes	101,299		21,410	20,289	—	—	142,998
Total expenses	974,754		211,421	196,741	—	—	1,382,916
Operating income	101,960		21,609	21,215	—	(35)	144,749
Allowance for equity funds used during construction	3,936		410	533	—	—	4,879
Equity in earnings of subsidiaries	25,898		—	—	—	(25,898)	—
Retirement defined benefits credit (expense)—other than service costs	1,711		334	(64)	—	—	1,981
Interest expense and other charges, net	(26,612)		(5,251)	(5,298)	—	35	(37,126)
Allowance for borrowed funds used during construction	1,288		127	161	—	—	1,576
Income before income taxes	108,181		17,229	16,547	—	(25,898)	116,059
Income taxes	17,097		3,927	3,493	—	—	24,517
Net income	91,084		13,302	13,054	—	(25,898)	91,542
Preferred stock dividends of subsidiaries	—		267	191	—	—	458
Net income attributable to Hawaiian Electric	91,084		13,035	12,863	—	(25,898)	91,084
Preferred stock dividends of Hawaiian Electric	540		—	—	—	—	540
Net income for common stock	$	90,544	13,035	12,863	—	(25,898)	$	90,544

Condensed Consolidating Statement of Income

Six months ended June 30, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	823,251	176,661	166,851	—	(20)	$	1,166,743
Expenses
Fuel oil	180,073		36,071	50,419	—	—	266,563
Purchased power	233,552		45,833	25,376	—	—	304,761
Other operation and maintenance	155,238		37,386	40,088	—	—	232,712
Depreciation	77,821		20,101	16,814	—	—	114,736
Taxes, other than income taxes	78,928		16,532	15,713	—	—	111,173
Total expenses	725,612		155,923	148,410	—	—	1,029,945
Operating income	97,639		20,738	18,441	—	(20)	136,798
Allowance for equity funds used during construction	3,678		272	618	—	—	4,568
Equity in earnings of subsidiaries	23,254		—	—	—	(23,254)	—
Retirement defined benefits credit (expense)—other than service costs	1,770		337	(66)	—	—	2,041
Interest expense and other charges, net	(25,661)		(5,154)	(5,183)	—	20	(35,978)
Allowance for borrowed funds used during construction	1,245		92	222	—	—	1,559
Income before income taxes	101,925		16,285	14,032	—	(23,254)	108,988
Income taxes	16,126		3,719	2,886	—	—	22,731
Net income	85,799		12,566	11,146	—	(23,254)	86,257
Preferred stock dividends of subsidiaries	—		267	191	—	—	458
Net income attributable to Hawaiian Electric	85,799		12,299	10,955	—	(23,254)	85,799
Preferred stock dividends of Hawaiian Electric	540		—	—	—	—	540
Net income for common stock	$	85,259	12,299	10,955	—	(23,254)	$	85,259

Statements of Income and Comprehensive Income Data

	Three months ended June 30				Six months ended June 30
(in thousands)	2022		2021		2022		2021
Interest and dividend income
Interest and fees on loans	$	48,129	$	51,026	$	94,134	$	100,973
Interest and dividends on investment securities	14,693		11,040		28,677		19,713
Total interest and dividend income	62,822		62,066		122,811		120,686
Interest expense
Interest on deposit liabilities	921		1,281		1,868		2,743
Interest on other borrowings	139		23		144		50
Total interest expense	1,060		1,304		2,012		2,793
Net interest income	61,762		60,762		120,799		117,893
Provision for credit losses	2,757		(12,207)		(506)		(20,642)
Net interest income after provision for credit losses	59,005		72,969		121,305		138,535
Noninterest income
Fees from other financial services	4,716		5,464		10,303		10,537
Fee income on deposit liabilities	4,552		3,904		9,243		7,767
Fee income on other financial products	2,529		2,201		5,247		4,643
Bank-owned life insurance	(142)		1,624		539		4,185
Mortgage banking income	372		1,925		1,449		6,225
Gain on sale of real estate	—		—		1,002		—
Gain on sale of investment securities, net	—		—		—		528
Other income, net	475		76		847		348
Total noninterest income	12,502		15,194		28,630		34,233
Noninterest expense
Compensation and employee benefits	27,666		27,670		54,881		55,707
Occupancy	5,467		5,100		11,419		10,069
Data processing	4,484		4,533		8,635		8,884
Services	2,522		2,475		4,961		5,337
Equipment	2,402		2,394		4,731		4,616
Office supplies, printing and postage	1,073		978		2,133		2,022
Marketing	934		665		1,952		1,313
FDIC insurance	891		788		1,699		1,604
Other expense	3,959		3,568		7,200		6,122
Total noninterest expense	49,398		48,171		97,611		95,674
Income before income taxes	22,109		39,992		52,324		77,094
Income taxes	4,643		9,708		10,988		17,254
Net income	17,466		30,284		41,336		59,840
Other comprehensive income (loss), net of taxes	(88,835)		16,999		(211,276)		(28,755)
Comprehensive income (loss)	$	(71,369)	$	47,283	$	(169,940)	$	31,085

Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*:

	Three months ended June 30				Six months ended June 30
(in thousands)	2022		2021		2022		2021
Interest and dividend income	$	62,822	$	62,066	$	122,811	$	120,686
Noninterest income	12,502		15,194		28,630		34,233
Less: Gain on sale of real estate	—		—		1,002		—
Less: Gain on sale of investment securities, net	—		—		—		528
*Revenues-Bank	75,324		77,260		150,439		154,391
Total interest expense	1,060		1,304		2,012		2,793
Provision for credit losses	2,757		(12,207)		(506)		(20,642)
Noninterest expense	49,398		48,171		97,611		95,674
Less: Gain on sale of real estate	—		—		1,002		—
Less: Retirement defined benefits credit—other than service costs	(186)		(186)		(371)		(1,464)
*Expenses-Bank	53,401		37,454		98,486		79,289
*Operating income-Bank	21,923		39,806		51,953		75,102
Add back: Retirement defined benefits credit—other than service costs	(186)		(186)		(371)		(1,464)
Add back: Gain on sale of investment securities, net	—		—		—		528
Income before income taxes	$	22,109	$	39,992	$	52,324	$	77,094

Schedule of statements of comprehensive income data

Statements of Income and Comprehensive Income Data

	Three months ended June 30				Six months ended June 30
(in thousands)	2022		2021		2022		2021
Interest and dividend income
Interest and fees on loans	$	48,129	$	51,026	$	94,134	$	100,973
Interest and dividends on investment securities	14,693		11,040		28,677		19,713
Total interest and dividend income	62,822		62,066		122,811		120,686
Interest expense
Interest on deposit liabilities	921		1,281		1,868		2,743
Interest on other borrowings	139		23		144		50
Total interest expense	1,060		1,304		2,012		2,793
Net interest income	61,762		60,762		120,799		117,893
Provision for credit losses	2,757		(12,207)		(506)		(20,642)
Net interest income after provision for credit losses	59,005		72,969		121,305		138,535
Noninterest income
Fees from other financial services	4,716		5,464		10,303		10,537
Fee income on deposit liabilities	4,552		3,904		9,243		7,767
Fee income on other financial products	2,529		2,201		5,247		4,643
Bank-owned life insurance	(142)		1,624		539		4,185
Mortgage banking income	372		1,925		1,449		6,225
Gain on sale of real estate	—		—		1,002		—
Gain on sale of investment securities, net	—		—		—		528
Other income, net	475		76		847		348
Total noninterest income	12,502		15,194		28,630		34,233
Noninterest expense
Compensation and employee benefits	27,666		27,670		54,881		55,707
Occupancy	5,467		5,100		11,419		10,069
Data processing	4,484		4,533		8,635		8,884
Services	2,522		2,475		4,961		5,337
Equipment	2,402		2,394		4,731		4,616
Office supplies, printing and postage	1,073		978		2,133		2,022
Marketing	934		665		1,952		1,313
FDIC insurance	891		788		1,699		1,604
Other expense	3,959		3,568		7,200		6,122
Total noninterest expense	49,398		48,171		97,611		95,674
Income before income taxes	22,109		39,992		52,324		77,094
Income taxes	4,643		9,708		10,988		17,254
Net income	17,466		30,284		41,336		59,840
Other comprehensive income (loss), net of taxes	(88,835)		16,999		(211,276)		(28,755)
Comprehensive income (loss)	$	(71,369)	$	47,283	$	(169,940)	$	31,085

Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*:

	Three months ended June 30				Six months ended June 30
(in thousands)	2022		2021		2022		2021
Interest and dividend income	$	62,822	$	62,066	$	122,811	$	120,686
Noninterest income	12,502		15,194		28,630		34,233
Less: Gain on sale of real estate	—		—		1,002		—
Less: Gain on sale of investment securities, net	—		—		—		528
*Revenues-Bank	75,324		77,260		150,439		154,391
Total interest expense	1,060		1,304		2,012		2,793
Provision for credit losses	2,757		(12,207)		(506)		(20,642)
Noninterest expense	49,398		48,171		97,611		95,674
Less: Gain on sale of real estate	—		—		1,002		—
Less: Retirement defined benefits credit—other than service costs	(186)		(186)		(371)		(1,464)
*Expenses-Bank	53,401		37,454		98,486		79,289
*Operating income-Bank	21,923		39,806		51,953		75,102
Add back: Retirement defined benefits credit—other than service costs	(186)		(186)		(371)		(1,464)
Add back: Gain on sale of investment securities, net	—		—		—		528
Income before income taxes	$	22,109	$	39,992	$	52,324	$	77,094

Schedule of balance sheets data

Condensed Consolidating Balance Sheet

June 30, 2022

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi- diaries	Consoli- dating adjustments	Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	42,860	5,606	3,594	—	—	$	52,060
Plant and equipment	5,178,903		1,399,002	1,262,710	—	—	7,840,615
Less accumulated depreciation	(1,816,724)		(633,559)	(576,012)	—	—	(3,026,295)
Construction in progress	173,970		20,725	31,984	—	—	226,679
Utility property, plant and equipment, net	3,579,009		791,774	722,276	—	—	5,093,059
Nonutility property, plant and equipment, less accumulated depreciation	5,300		115	1,532	—	—	6,947
Total property, plant and equipment, net	3,584,309		791,889	723,808	—	—	5,100,006
Investment in wholly owned subsidiaries, at equity	686,338		—	—	—	(686,338)	—
Current assets
Cash and cash equivalents	6,578		5,754	3,094	77	—	15,503
Restricted cash	1,129		—	—	—	—	1,129
Advances to affiliates	3,000		—	10,000	—	(13,000)	—
Customer accounts receivable, net	176,838		37,631	32,801	—	—	247,270
Accrued unbilled revenues, net	128,083		26,245	24,548	—	—	178,876
Other accounts receivable, net	20,525		3,063	3,320	—	(16,520)	10,388
Fuel oil stock, at average cost	178,911		17,254	27,622	—	—	223,787
Materials and supplies, at average cost	43,836		10,001	20,744	—	—	74,581
Prepayments and other	27,424		4,911	3,593	—	612	36,540
Regulatory assets	64,999		4,452	4,127	—	—	73,578
Total current assets	651,323		109,311	129,849	77	(28,908)	861,652
Other long-term assets
Operating lease right-of-use assets	49,326		36,743	13,621	—	—	99,690
Regulatory assets	309,077		76,660	71,585	—	—	457,322
Other	129,402		19,163	20,280	—	(519)	168,326
Total other long-term assets	487,805		132,566	105,486	—	(519)	725,338
Total assets	$	5,409,775	1,033,766	959,143	77	(715,765)	$	6,686,996
Capitalization and liabilities
Capitalization
Common stock equity	$	2,289,595	337,737	348,524	77	(686,338)	$	2,289,595
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,176,691		244,393	263,436	—	—	1,684,520
Total capitalization	3,488,579		589,130	616,960	77	(686,338)	4,008,408
Current liabilities
Current portion of operating lease liabilities	18,985		6,441	2,550	—	—	27,976
Current portion of long-term debt	39,991		11,997	—	—	—	51,988
Short-term borrowings from non-affiliates	54,987		—	—	—	—	54,987
Short-term borrowings from affiliate	10,000		3,000	—	—	(13,000)	—
Accounts payable	156,222		22,524	20,410	—	—	199,156
Interest and preferred dividends payable	12,779		2,677	2,350	—	(10)	17,796
Taxes accrued, including revenue taxes	145,594		34,157	31,636	—	612	211,999
Regulatory liabilities	14,614		3,532	4,487	—	—	22,633
Other	61,438		17,749	18,105	—	(16,668)	80,624
Total current liabilities	514,610		102,077	79,538	—	(29,066)	667,159
Deferred credits and other liabilities
Operating lease liabilities	44,498		30,428	11,185	—	—	86,111
Deferred income taxes	285,438		51,403	63,269	—	—	400,110
Regulatory liabilities	709,954		182,303	93,185	—	—	985,442
Unamortized tax credits	73,441		13,643	13,028	—	—	100,112
Defined benefit pension and other postretirement benefit plans liability	216,789		47,783	51,264	—	(361)	315,475
Other	76,466		16,999	30,714	—	—	124,179
Total deferred credits and other liabilities	1,406,586		342,559	262,645	—	(361)	2,011,429
Total capitalization and liabilities	$	5,409,775	1,033,766	959,143	77	(715,765)	$	6,686,996

Condensed Consolidating Balance Sheet

December 31, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diaries	Consoli- dating adjustments	Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	42,737	5,606	3,594	—	—	$	51,937
Plant and equipment	5,097,033		1,390,361	1,248,589	—	—	7,735,983
Less accumulated depreciation	(1,757,096)		(619,991)	(563,430)	—	—	(2,940,517)
Construction in progress	159,854		17,129	27,586	—	—	204,569
Utility property, plant and equipment, net	3,542,528		793,105	716,339	—	—	5,051,972
Nonutility property, plant and equipment, less accumulated depreciation	5,302		115	1,532	—	—	6,949
Total property, plant and equipment, net	3,547,830		793,220	717,871	—	—	5,058,921
Investment in wholly owned subsidiaries, at equity	676,237		—	—	—	(676,237)	—
Current assets
Cash and cash equivalents	23,344		5,326	23,422	77	—	52,169
Restricted cash	3,089		—	—	—	—	3,089
Advances to affiliates	1,000		—	—	—	(1,000)	—
Customer accounts receivable, net	135,949		28,469	22,441	—	—	186,859
Accrued unbilled revenues, net	92,469		19,529	17,157	—	—	129,155
Other accounts receivable, net	18,624		3,347	3,031	—	(17,735)	7,267
Fuel oil stock, at average cost	71,184		12,814	20,080	—	—	104,078
Materials and supplies, at average cost	42,006		9,727	20,144	—	—	71,877
Prepayments and other	32,140		6,052	7,114	—	725	46,031
Regulatory assets	58,695		3,051	4,918	—	—	66,664
Total current assets	478,500		88,315	118,307	77	(18,010)	667,189
Other long-term assets
Operating lease right-of-use assets	78,710		22,442	318	—	—	101,470
Regulatory assets	337,903		81,645	79,331	—	—	498,879
Other	130,546		17,124	18,510	—	(1,014)	165,166
Total other long-term assets	547,159		121,211	98,159	—	(1,014)	765,515
Total assets	$	5,249,726	1,002,746	934,337	77	(695,261)	$	6,491,625
Capitalization and liabilities
Capitalization
Common stock equity	$	2,261,899	332,900	343,260	77	(676,237)	$	2,261,899
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,136,620		234,390	253,417	—	—	1,624,427
Total capitalization	3,420,812		574,290	601,677	77	(676,237)	3,920,619
Current liabilities
Current portion of operating lease liabilities	45,955		3,378	35	—	—	49,368
Current portion of long-term debt	39,981		11,994	—	—	—	51,975
Short-term borrowings-affiliate	—		1,000	—	—	(1,000)	—
Accounts payable	111,024		26,139	22,844	—	—	160,007
Interest and preferred dividends payable	12,442		2,617	2,269	—	(3)	17,325
Taxes accrued, including revenue taxes	143,723		33,153	30,679	—	725	208,280
Regulatory liabilities	22,240		3,247	4,273	—	—	29,760
Other	56,752		14,158	18,540	—	(17,881)	71,569
Total current liabilities	432,117		95,686	78,640	—	(18,159)	588,284
Deferred credits and other liabilities
Operating lease liabilities	46,426		19,063	291	—	—	65,780
Deferred income taxes	291,027		53,298	64,309	—	—	408,634
Regulatory liabilities	695,152		179,267	92,589	—	—	967,008
Unamortized tax credits	76,201		14,212	13,532	—	—	103,945
Defined benefit pension and other postretirement benefit plans liability	220,480		48,900	53,257	—	(857)	321,780
Other	67,511		18,030	30,042	—	(8)	115,575
Total deferred credits and other liabilities	1,396,797		332,770	254,020	—	(865)	1,982,722
Total capitalization and liabilities	$	5,249,726	1,002,746	934,337	77	(695,261)	$	6,491,625

Balance Sheets Data

(in thousands)	June 30, 2022				December 31, 2021
Assets
Cash and due from banks			$	128,971			$	100,051
Interest-bearing deposits			12,054				151,189
Cash and cash equivalents			141,025				251,240
Investment securities
Available-for-sale, at fair value			2,444,267				2,574,618
Held-to-maturity, at amortized cost (fair value of $440,023 and $510,474, respectively)			513,767				522,270
Stock in Federal Home Loan Bank, at cost			13,200				10,000
Loans held for investment			5,426,995				5,211,114
Allowance for credit losses			(69,456)				(71,130)
Net loans			5,357,539				5,139,984
Loans held for sale, at lower of cost or fair value			3,738				10,404
Other			659,139				590,897
Goodwill			82,190				82,190
Total assets			$	9,214,865			$	9,181,603
Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing			$	2,993,900			$	2,976,632
Deposit liabilities—interest-bearing			5,259,636				5,195,580
Other borrowings			241,610				88,305
Other			187,770				193,268
Total liabilities			8,682,916				8,453,785
Common stock			1				1
Additional paid-in capital			354,966				353,895
Retained earnings			426,040				411,704
Accumulated other comprehensive loss, net of tax benefits
Net unrealized losses on securities	$	(241,301)			$	(32,037)
Retirement benefit plans	(7,757)		(249,058)		(5,745)		(37,782)
Total shareholder’s equity			531,949				727,818
Total liabilities and shareholder’s equity			$	9,214,865			$	9,181,603
Other assets
Bank-owned life insurance			$	181,166			$	177,566
Premises and equipment, net			199,429				202,299
Accrued interest receivable			21,335				20,854
Mortgage-servicing rights			9,696				9,950
Low-income housing investments			104,592				110,989
Real estate acquired in settlement of loans, net			271				—
Real estate held for sale			3,030				—
Deferred tax asset			84,814				7,699
Other			54,806				61,540
			$	659,139			$	590,897
Other liabilities
Accrued expenses			$	83,915			$	87,905
Federal and state income taxes payable			—				—
Cashier’s checks			33,747				33,675
Advance payments by borrowers			9,980				9,994
Other			60,128				61,694
			$	187,770			$	193,268

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
(dollars in thousands)									Number of issues	Fair  value		Amount		Number of issues	Fair  value		Amount
June 30, 2022
Available-for-sale
U.S. Treasury and federal agency obligations	$	107,389	$	—	$	(4,902)	$	102,487	17	$	102,487	$	(4,902)	—	$	—	$	—
Mortgage-backed securities*	2,606,904		467		(322,185)		2,285,186		180	1,409,947		(158,235)		66	845,879		(163,950)
Corporate bonds	44,447		—		(3,018)		41,429		5	41,429		(3,018)		—	—		—
Mortgage revenue bonds	15,165		—		—		15,165		—	—		—		—	—		—
	$	2,773,905	$	467	$	(330,105)	$	2,444,267	202	$	1,553,863	$	(166,155)	66	$	845,879	$	(163,950)
Held-to-maturity
U.S. Treasury and Federal agency obligations	$	59,882	$	—	$	(5,997)	$	53,885	3	$	53,885	$	(5,997)	—	$	—	$	—
Mortgage-backed securities*	453,885		—		(67,747)		386,138		24	236,918		(35,867)		13	149,220		(31,880)
	$	513,767	$	—	$	(73,744)	$	440,023	27	$	290,803	$	(41,864)	13	$	149,220	$	(31,880)
December 31, 2021
Available-for-sale
U.S. Treasury and federal agency obligations	$	89,714	$	803	$	(427)	$	90,090	4	$	44,827	$	(427)	—	$	—	$	—
Mortgage-backed securities*	2,482,618		6,511		(51,206)		2,437,923		120	1,845,243		(38,321)		18	271,012		(12,885)
Corporate bonds	30,625		655		(102)		31,178		1	12,780		(102)		—	—		—
Mortgage revenue bonds	15,427		—		—		15,427		—	—		—		—	—		—
	$	2,618,384	$	7,969	$	(51,735)	$	2,574,618	125	$	1,902,850	$	(38,850)	18	$	271,012	$	(12,885)
Held-to-maturity
U.S. Treasury and Federal agency obligations	$	59,871	$	168	$	(170)	$	59,869	2	$	39,594	$	(170)	—	$	—	$	—
Mortgage-backed securities*	462,399		1,480		(13,274)		450,605		22	290,883		(7,665)		7	106,483		(5,609)
	$	522,270	$	1,648	$	(13,444)	$	510,474	24	$	330,477	$	(7,835)	7	$	106,483	$	(5,609)

* Issued or guaranteed by U.S. Government agencies or sponsored agencies

Schedule of contractual maturities of available-for-sale securities

The contractual maturities of investment securities were as follows:

June 30, 2022	Amortized cost		Fair value
(in thousands)
Available-for-sale
Due in one year or less	$	15,807	$	15,781
Due after one year through five years	84,406		81,286
Due after five years through ten years	66,788		62,014
Due after ten years	—		—
	167,001		159,081
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	2,606,904		2,285,186
Total available-for-sale securities	$	2,773,905	$	2,444,267
Held-to-maturity
Due in one year or less	$	—	$	—
Due after one year through five years	—		—
Due after five years through ten years	59,882		53,885
Due after ten years	—		—
	59,882		53,885
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	453,885		386,138
Total held-to-maturity securities	$	513,767	$	440,023

Schedule of proceeds, gross gains and losses from sales of available-for-sale securities

The proceeds, gross gains and losses from sales of available-for-sale securities were as follows:

	Three months ended June 30				Six months ended June 30
(in thousands)	2022		2021		2022		2021
Proceeds	$	—	$	—	$	—	$	197,354
Gross gains	—		—		—		975
Gross losses	—		—		—		447
Tax expense on realized gains	—		—		—		142

Schedule of components of loans receivable

The components of loans were summarized as follows:

	June 30, 2022		December 31, 2021
(in thousands)
Real estate:
Residential 1-4 family	$	2,310,041	$	2,299,212
Commercial real estate	1,261,389		1,056,982
Home equity line of credit	923,976		835,663
Residential land	21,535		19,859
Commercial construction	94,060		91,080
Residential construction	19,230		11,138
Total real estate	4,630,231		4,313,934
Commercial	660,478		793,304
Consumer	148,637		113,966
Total loans	5,439,346		5,221,204
Less: Deferred fees and discounts	(12,351)		(10,090)
Allowance for credit losses	(69,456)		(71,130)
Total loans, net	$	5,357,539	$	5,139,984

Schedule of allowance for credit losses

The allowance for credit losses (balances and changes) by portfolio segment 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		Total
Three months ended June 30, 2022
Allowance for credit losses:
Beginning balance	$	7,874	$	20,176	$	5,650	$	697	$	2,340	$	31	$	14,314	$	16,129	$	67,211
Charge-offs	—		—		—		—		—		—		(148)		(1,369)		(1,517)
Recoveries	3		—		31		96		—		—		399		976		1,505
Provision	643		724		415		(116)		294		15		(2,152)		2,434		2,257
Ending balance	$	8,520	$	20,900	$	6,096	$	677	$	2,634	$	46	$	12,413	$	18,170	$	69,456
Three months ended June 30, 2021
Allowance for credit losses:
Beginning balance	$	5,261	$	34,345	$	5,901	$	573	$	1,453	$	16	$	24,504	$	19,740	$	91,793
Charge-offs	(20)		—		10		—		—		—		(319)		(1,931)		(2,260)
Recoveries	51		—		61		11		—		—		366		1,187		1,676
Provision	226		(5,637)		(637)		34		176		—		(4,493)		(2,626)		(12,957)
Ending balance	$	5,518	$	28,708	$	5,335	$	618	$	1,629	$	16	$	20,058	$	16,370	$	78,252
Six months ended June 30, 2022
Allowance for credit losses:
Beginning balance	$	6,545	$	24,696	$	5,657	$	646	$	2,186	$	18	$	15,798	$	15,584	$	71,130
Charge-offs	—		—		—		—		—		—		(224)		(2,851)		(3,075)
Recoveries	11		—		42		101		—		—		752		2,001		2,907
Provision	1,964		(3,796)		397		(70)		448		28		(3,913)		3,436		(1,506)
Ending balance	$	8,520	$	20,900	$	6,096	$	677	$	2,634	$	46	$	12,413	$	18,170	$	69,456
Six months ended June 30, 2021
Allowance for credit losses:
Beginning balance	$	4,600	$	35,607	$	6,813	$	609	$	4,149	$	11	$	25,462	$	23,950	$	101,201
Charge-offs	(20)		—		(40)		—		—		—		(1,090)		(4,791)		(5,941)
Recoveries	54		—		76		21		—		—		639		2,194		2,984
Provision	884		(6,899)		(1,514)		(12)		(2,520)		5		(4,953)		(4,983)		(19,992)
Ending balance	$	5,518	$	28,708	$	5,335	$	618	$	1,629	$	16	$	20,058	$	16,370	$	78,252

Schedule of allowance for loan commitments

The allowance for loan commitments by portfolio segment were as follows:

(in thousands)	Home equity  line of credit		Commercial construction		Commercial loans		Total
Three months ended June 30, 2022
Allowance for loan commitments:
Beginning balance	$	400	$	3,600	$	1,400	$	5,400
Provision	—		500		—		500
Ending balance	$	400	$	4,100	$	1,400	$	5,900
Three months ended June 30, 2021
Allowance for loan commitments:
Beginning balance	$	400	$	1,300	$	1,200	$	2,900
Provision	—		1,100		(350)		750
Ending balance	$	400	$	2,400	$	850	$	3,650
Six months ended June 30, 2022
Allowance for loan commitments:
Beginning balance	$	400	$	3,700	$	800	$	4,900
Provision	—		400		600		1,000
Ending balance	$	400	$	4,100	$	1,400	$	5,900
Six months ended June 30, 2021
Allowance for loan commitments:
Beginning balance	$	300	$	3,000	$	1,000	$	4,300
Provision	100		(600)		(150)		(650)
Ending balance	$	400	$	2,400	$	850	$	3,650

Schedule of credit risk profile by internally assigned grade for loans

The credit risk profile by vintage date based on payment activity or internally assigned grade for loans was as follows:

	Term Loans by Origination Year												Revolving Loans
(in thousands)	2022		2021		2020		2019		2018		Prior		Revolving		Converted to term loans		Total
June 30, 2022
Residential 1-4 family
Current	$	176,333	$	768,123	$	437,911	$	119,503	$	56,469	$	742,653	$	—	$	—	$	2,300,992
30-59 days past due	—		—		572		217		453		3,288		—		—		4,530
60-89 days past due	—		—		—		—		—		637		—		—		637
Greater than 89 days past due	—		—		—		—		809		3,073		—		—		3,882
	176,333		768,123		438,483		119,720		57,731		749,651		—		—		2,310,041
Home equity line of credit
Current	—		—		—		—		—		—		881,505		41,295		922,800
30-59 days past due	—		—		—		—		—		—		110		101		211
60-89 days past due	—		—		—		—		—		—		106		83		189
Greater than 89 days past due	—		—		—		—		—		—		423		353		776
	—		—		—		—		—		—		882,144		41,832		923,976
Residential land
Current	4,290		9,861		5,410		753		527		283		—		—		21,124
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		109		—		—		109
Greater than 89 days past due	—		—		—		205		—		97		—		—		302
	4,290		9,861		5,410		958		527		489		—		—		21,535
Residential construction
Current	5,614		11,071		2,297		—		—		248		—		—		19,230
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		—		—		—		—
	5,614		11,071		2,297		—		—		248		—		—		19,230
Consumer
Current	71,436		28,455		10,209		16,525		3,385		198		11,509		4,235		145,952
30-59 days past due	268		224		68		330		82		2		107		110		1,191
60-89 days past due	74		109		78		161		91		—		45		57		615
Greater than 89 days past due	80		159		67		255		107		—		91		120		879
	71,858		28,947		10,422		17,271		3,665		200		11,752		4,522		148,637
Commercial real estate
Pass	229,603		171,805		301,360		52,361		61,179		289,835		4,235		—		1,110,378
Special Mention	—		19,600		3,488		41,235		14,174		36,958		—		—		115,455
Substandard	—		—		675		11,444		1,835		21,602		—		—		35,556
Doubtful	—		—		—		—		—		—		—		—		—
	229,603		191,405		305,523		105,040		77,188		348,395		4,235		—		1,261,389
Commercial construction
Pass	—		35,982		25,123		—		11,341		—		21,614		—		94,060
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
	—		35,982		25,123		—		11,341		—		21,614		—		94,060
Commercial
Pass	41,268		181,637		87,936		74,326		45,637		87,962		78,344		14,590		611,700
Special Mention	—		23		9,702		6,533		101		1,011		15,414		14		32,798
Substandard	315		409		156		2,122		1,548		5,975		4,308		1,147		15,980
Doubtful	—		—		—		—		—		—		—		—		—
	41,583		182,069		97,794		82,981		47,286		94,948		98,066		15,751		660,478
Total loans	$	529,281	$	1,227,458	$	885,052	$	325,970	$	197,738	$	1,193,931	$	1,017,811	$	62,105	$	5,439,346

	Term Loans by Origination Year												Revolving Loans
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving		Converted to term loans		Total
December 31, 2021
Residential 1-4 family
Current	$	791,758	$	461,683	$	133,345	$	64,421	$	124,994	$	712,452	$	—	$	—	$	2,288,653
30-59 days past due	—		—		—		809		—		2,210		—		—		3,019
60-89 days past due	—		—		—		—		—		1,468		—		—		1,468
Greater than 89 days past due	—		—		2,987		—		—		3,085		—		—		6,072
	791,758		461,683		136,332		65,230		124,994		719,215		—		—		2,299,212
Home equity line of credit
Current	—		—		—		—		—		—		794,518		39,116		833,634
30-59 days past due	—		—		—		—		—		—		296		313		609
60-89 days past due	—		—		—		—		—		—		16		70		86
Greater than 89 days past due	—		—		—		—		—		—		838		496		1,334
	—		—		—		—		—		—		795,668		39,995		835,663
Residential land
Current	10,572		6,794		1,116		532		267		181		—		—		19,462
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		397		—		—		397
	10,572		6,794		1,116		532		267		578		—		—		19,859
Residential construction
Current	7,856		3,019		—		—		263		—		—		—		11,138
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		—		—		—		—
	7,856		3,019		—		—		263		—		—		—		11,138
Consumer
Current	37,563		15,488		29,383		10,897		302		238		12,740		4,157		110,768
30-59 days past due	202		181		517		234		15		—		156		70		1,375
60-89 days past due	59		127		392		183		8		—		7		106		882
Greater than 89 days past due	14		93		387		192		27		—		141		87		941
	37,838		15,889		30,679		11,506		352		238		13,044		4,420		113,966
Commercial real estate
Pass	173,794		275,242		49,317		56,490		33,581		259,583		11,602		—		859,609
Special Mention	19,600		3,529		42,935		30,870		20,788		32,824		—		—		150,546
Substandard	—		684		13,936		1,859		1,805		28,543		—		—		46,827
Doubtful	—		—		—		—		—		—		—		—		—
	193,394		279,455		106,188		89,219		56,174		320,950		11,602		—		1,056,982
Commercial construction
Pass	17,140		43,261		—		11,342		—		—		19,337		—		91,080
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
	17,140		43,261		—		11,342		—		—		19,337		—		91,080
Commercial
Pass	266,087		96,963		79,329		56,497		31,019		66,570		96,673		15,510		708,648
Special Mention	40		27,336		10,071		202		439		8,966		15,303		18		62,375
Substandard	427		184		3,737		1,777		4,457		2,961		7,083		1,655		22,281
Doubtful	—		—		—		—		—		—		—		—		—
	266,554		124,483		93,137		58,476		35,915		78,497		119,059		17,183		793,304
Total loans	$	1,325,112	$	934,584	$	367,452	$	236,305	$	217,965	$	1,119,478	$	958,710	$	61,598	$	5,221,204

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		Amortized cost> 90 days and accruing
June 30, 2022
Real estate:
Residential 1-4 family	$	4,530	$	637	$	3,882	$	9,049	$	2,300,992	$	2,310,041	$	—
Commercial real estate	472		—		—		472		1,260,917		1,261,389		—
Home equity line of credit	211		189		776		1,176		922,800		923,976		—
Residential land	—		109		302		411		21,124		21,535		—
Commercial construction	—		—		—		—		94,060		94,060		—
Residential construction	—		—		—		—		19,230		19,230		—
Commercial	87		763		9		859		659,619		660,478		—
Consumer	1,191		615		879		2,685		145,952		148,637		—
Total loans	$	6,491	$	2,313	$	5,848	$	14,652	$	5,424,694	$	5,439,346	$	—
December 31, 2021
Real estate:
Residential 1-4 family	$	3,019	$	1,468	$	6,072	$	10,559	$	2,288,653	$	2,299,212	$	—
Commercial real estate	—		—		—		—		1,056,982		1,056,982		—
Home equity line of credit	609		86		1,334		2,029		833,634		835,663		—
Residential land	—		—		397		397		19,462		19,859		—
Commercial construction	—		—		—		—		91,080		91,080		—
Residential construction	—		—		—		—		11,138		11,138		—
Commercial	700		313		48		1,061		792,243		793,304		—
Consumer	1,375		882		941		3,198		110,768		113,966		—
Total loans	$	5,703	$	2,749	$	8,792	$	17,244	$	5,203,960	$	5,221,204	$	—

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 were as follows:

(in thousands)	June 30, 2022						December 31, 2021
	With a Related ACL		Without a Related ACL		Total		With a Related ACL		Without a Related ACL		Total
Real estate:
Residential 1-4 family	$	11,487	$	3,571	$	15,058	$	16,045	$	3,703	$	19,748
Commercial real estate	—		—		—		14,104		1,221		15,325
Home equity line of credit	3,225		725		3,950		4,227		1,294		5,521
Residential land	205		97		302		97		300		397
Commercial construction	—		—		—		—		—		—
Residential construction	—		—		—		—		—		—
Commercial	240		899		1,139		1,446		692		2,138
Consumer	1,430		—		1,430		1,845		—		1,845
Total	$	16,587	$	5,292	$	21,879	$	37,764	$	7,210	$	44,974

The credit risk profile based on loans whose terms have been modified and accruing interest were as follows:

(in thousands)	June 30, 2022		December 31, 2021
Real estate:
Residential 1-4 family	$	7,690	$	6,949
Commercial real estate	10,031		3,055
Home equity line of credit	5,037		6,021
Residential land	920		980
Commercial construction	—		—
Residential construction	—		—
Commercial	6,844		7,860
Consumer	51		52
Total troubled debt restructured loans accruing interest	$	30,573	$	24,917

Schedule of loan modifications

Loan modifications that occurred during the three and six months ended June 30, 2022 and 2021 were as follows:

	Three months ended June 30, 2022					Six months ended June 30, 2022
(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)
Troubled debt restructurings
Real estate:
Residential 1-4 family	1	381		135		1	381		135
Commercial real estate	—	—		—		—	—		—
Home equity line of credit	—	—		—		—	—		—
Residential land	—	—		—		—	—		—
Commercial construction	—	—		—		—	—		—
Residential construction	—	—		—		—	—		—
Commercial	—	—		—		—	—		—
Consumer	—	—		—		—	—		—
	1	$	381	$	135	1	$	381	$	135

	Three months ended June 30, 2021					Six months ended June 30, 2021
(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)
Troubled debt restructurings
Real estate:
Residential 1-4 family	3	$	1,835	$	77	15	$	10,024	$	271
Commercial real estate	—	—		—		—	—		—
Home equity line of credit	—	—		—		1	163		18
Residential land	1	288		12		2	558		23
Commercial construction	—	—		—		—	—		—
Residential construction	—	—		—		—	—		—
Commercial	4	237		11		6	296		26
Consumer	—	—		—		—	—		—
	8	$	2,360	$	100	24	$	11,041	$	338

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 collateral-dependent loans

Loans considered collateral-dependent were as follows:

	Amortized cost
(in thousands)	June 30, 2022		December 31, 2021		Collateral type
Real estate:
Residential 1-4 family	$	4,070	$	3,493	Residential real estate property
Commercial real estate	—		1,221		Commercial real estate property
Home equity line of credit	706		1,294		Residential real estate property
Residential land	97		300		Residential real estate property
Total real estate	4,873		6,308
Commercial	205		692		Business assets
Total	$	5,078	$	7,000

Schedule of amortized intangible assets

Changes in the carrying value of MSRs were as follows:

(in thousands)	Gross carrying amount		Accumulated amortization		Valuation allowance		Net carrying amount
June 30, 2022	$	19,341	$	(9,645)	$	—	$	9,696
December 31, 2021	18,674		(8,724)		—		9,950

Changes related to MSRs were as follows:

	Three months ended June 30,				Six months ended June 30
(in thousands)	2022		2021		2022		2021
Mortgage servicing rights
Beginning balance	$	10,024	$	10,689	$	9,950	$	10,280
Amount capitalized	204		1,023		923		2,570
Amortization	(532)		(958)		(1,177)		(2,096)
Other-than-temporary impairment	—		—		—		—
Carrying amount before valuation allowance	9,696		10,754		9,696		10,754
Valuation allowance for mortgage servicing rights
Beginning balance	—		4		—		260
Provision	—		(4)		—		(260)
Other-than-temporary impairment	—		—		—		—
Ending balance	—		—		—		—
Net carrying value of mortgage servicing rights	$	9,696	$	10,754	$	9,696	$	10,754

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:

(dollars in thousands)	June 30, 2022			December 31, 2021
Unpaid principal balance	$	1,483,877		$	1,481,899
Weighted average note rate	3.34		%	3.38		%
Weighted average discount rate	9.25		%	9.25		%
Weighted average prepayment speed	6.55		%	9.77		%

Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets

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:

(dollars in thousands)	June 30, 2022		December 31, 2021
Prepayment rate:
25 basis points adverse rate change	$	(111)	$	(714)
50 basis points adverse rate change	(244)		(1,608)
Discount rate:
25 basis points adverse rate change	(176)		(129)
50 basis points adverse rate change	(350)		(256)

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
June 30, 2022	$	162	$	—	$	162
December 31, 2021	88		—		88

	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
June 30, 2022	$	162	$	181	$	—
December 31, 2021	88		161		—

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, 2022				December 31, 2021
(in thousands)	Notional amount		Fair value		Notional amount		Fair value
Interest rate lock commitments	$	4,939	$	44	$	39,377	$	638
Forward commitments	4,750		27		38,000		(11)

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, 2022				December 31, 2021
(in thousands)	Asset derivatives		Liability derivatives		Asset derivatives		Liability derivatives
Interest rate lock commitments	$	44	$	—	$	638	$	—
Forward commitments	27		—		—		11
	$	71	$	—	$	638	$	11

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 ASB’s statements of income:

Derivative Financial Instruments Not Designated as Hedging Instruments	Location of net gains (losses) recognized in the Statements of Income	Three months ended June 30,				Six months ended June 30
(in thousands)		2022		2021		2022		2021
Interest rate lock commitments	Mortgage banking income	$	62	$	(67)	$	(593)	$	(4,165)
Forward commitments	Mortgage banking income	(141)		(381)		37		459
		$	(79)	$	(448)	$	(556)	$	(3,706)