Bank segment (Tables)

9 Months Ended

Sep. 30, 2022

Bank Subsidiary [Abstract]

Schedule of statements of income data

Condensed Consolidating Statement of Income

Three months ended September 30, 2022

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	693,281	130,858	131,910	—	(78)	$	955,971
Expenses
Fuel oil	280,447		40,540	62,615	—	—	383,602
Purchased power	171,470		37,263	16,476	—	—	225,209
Other operation and maintenance	77,115		21,882	22,113	—	—	121,110
Depreciation	39,474		10,350	8,887	—	—	58,711
Taxes, other than income taxes	64,051		12,026	12,213	—	—	88,290
Total expenses	632,557		122,061	122,304	—	—	876,922
Operating income	60,724		8,797	9,606	—	(78)	79,049
Allowance for equity funds used during construction	2,063		206	283	—	—	2,552
Equity in earnings of subsidiaries	10,577		—	—	—	(10,577)	—
Retirement defined benefits credit (expense)—other than service costs	760		166	(31)	—	—	895
Interest expense and other charges, net	(14,221)		(2,716)	(2,750)	—	78	(19,609)
Allowance for borrowed funds used during construction	674		63	88	—	—	825
Income before income taxes	60,577		6,516	7,196	—	(10,577)	63,712
Income taxes	10,543		1,424	1,483	—	—	13,450
Net income	50,034		5,092	5,713	—	(10,577)	50,262
Preferred stock dividends of subsidiaries	—		133	95	—	—	228
Net income attributable to Hawaiian Electric	50,034		4,959	5,618	—	(10,577)	50,034
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	49,764	4,959	5,618	—	(10,577)	$	49,764

Condensed Consolidating Statement of Income

Three months ended September 30, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	478,046	100,313	101,141	—	(1)	$	679,499
Expenses
Fuel oil	126,909		21,104	32,669	—	—	180,682
Purchased power	136,688		31,159	17,912	—	—	185,759
Other operation and maintenance	75,191		19,964	21,313	—	—	116,468
Depreciation	38,912		10,050	8,424	—	—	57,386
Taxes, other than income taxes	45,239		9,333	9,440	—	—	64,012
Total expenses	422,939		91,610	89,758	—	—	604,307
Operating income	55,107		8,703	11,383	—	(1)	75,192
Allowance for equity funds used during construction	1,999		131	297	—	—	2,427
Equity in earnings of subsidiaries	12,028		—	—	—	(12,028)	—
Retirement defined benefits credit (expense)—other than service costs	741		166	(30)	—	—	877
Interest expense and other charges, net	(12,943)		(2,590)	(2,616)	—	1	(18,148)
Allowance for borrowed funds used during construction	676		44	107	—	—	827
Income before income taxes	57,608		6,454	9,141	—	(12,028)	61,175
Income taxes	6,996		1,433	1,906	—	—	10,335
Net income	50,612		5,021	7,235	—	(12,028)	50,840
Preferred stock dividends of subsidiaries	—		133	95	—	—	228
Net income attributable to Hawaiian Electric	50,612		4,888	7,140	—	(12,028)	50,612
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	50,342	4,888	7,140	—	(12,028)	$	50,342

Condensed Consolidating Statement of Income

Nine months ended September 30, 2022

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	1,769,995	363,888	349,866	—	(113)	$	2,483,636
Expenses
Fuel oil	619,169		98,856	156,518	—	—	874,543
Purchased power	460,855		106,710	39,262	—	—	606,827
Other operation and maintenance	243,478		63,427	64,354	—	—	371,259
Depreciation	118,459		31,053	26,409	—	—	175,921
Taxes, other than income taxes	165,350		33,436	32,502	—	—	231,288
Total expenses	1,607,311		333,482	319,045	—	—	2,259,838
Operating income	162,684		30,406	30,821	—	(113)	223,798
Allowance for equity funds used during construction	5,999		616	816	—	—	7,431
Equity in earnings of subsidiaries	36,475		—	—	—	(36,475)	—
Retirement defined benefits credit (expense)—other than service costs	2,471		500	(95)	—	—	2,876
Interest expense and other charges, net	(40,833)		(7,967)	(8,048)	—	113	(56,735)
Allowance for borrowed funds used during construction	1,962		190	249	—	—	2,401
Income before income taxes	168,758		23,745	23,743	—	(36,475)	179,771
Income taxes	27,640		5,351	4,976	—	—	37,967
Net income	141,118		18,394	18,767	—	(36,475)	141,804
Preferred stock dividends of subsidiaries	—		400	286	—	—	686
Net income attributable to Hawaiian Electric	141,118		17,994	18,481	—	(36,475)	141,118
Preferred stock dividends of Hawaiian Electric	810		—	—	—	—	810
Net income for common stock	$	140,308	17,994	18,481	—	(36,475)	$	140,308

Condensed Consolidating Statement of Income

Nine months ended September 30, 2021

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	1,301,297	276,974	267,992	—	(21)	$	1,846,242
Expenses
Fuel oil	306,982		57,175	83,088	—	—	447,245
Purchased power	370,240		76,992	43,288	—	—	490,520
Other operation and maintenance	230,429		57,350	61,401	—	—	349,180
Depreciation	116,733		30,151	25,238	—	—	172,122
Taxes, other than income taxes	124,167		25,865	25,153	—	—	175,185
Total expenses	1,148,551		247,533	238,168	—	—	1,634,252
Operating income	152,746		29,441	29,824	—	(21)	211,990
Allowance for equity funds used during construction	5,677		403	915	—	—	6,995
Equity in earnings of subsidiaries	35,282		—	—	—	(35,282)	—
Retirement defined benefits credit (expense)—other than service costs	2,511		503	(96)	—	—	2,918
Interest expense and other charges, net	(38,604)		(7,744)	(7,799)	—	21	(54,126)
Allowance for borrowed funds used during construction	1,921		136	329	—	—	2,386
Income before income taxes	159,533		22,739	23,173	—	(35,282)	170,163
Income taxes	23,122		5,152	4,792	—	—	33,066
Net income	136,411		17,587	18,381	—	(35,282)	137,097
Preferred stock dividends of subsidiaries	—		400	286	—	—	686
Net income attributable to Hawaiian Electric	136,411		17,187	18,095	—	(35,282)	136,411
Preferred stock dividends of Hawaiian Electric	810		—	—	—	—	810
Net income for common stock	$	135,601	17,187	18,095	—	(35,282)	$	135,601

Statements of Income and Comprehensive Income Data

	Three months ended September 30				Nine months ended September 30
(in thousands)	2022		2021		2022		2021
Interest and dividend income
Interest and fees on loans	$	53,365	$	49,445	$	147,499	$	150,418
Interest and dividends on investment securities	15,052		11,996		43,729		31,709
Total interest and dividend income	68,417		61,441		191,228		182,127
Interest expense
Interest on deposit liabilities	1,704		1,176		3,572		3,919
Interest on other borrowings	1,055		5		1,199		55
Total interest expense	2,759		1,181		4,771		3,974
Net interest income	65,658		60,260		186,457		178,153
Provision for credit losses	(186)		(1,725)		(692)		(22,367)
Net interest income after provision for credit losses	65,844		61,985		187,149		200,520
Noninterest income
Fees from other financial services	4,763		4,800		15,066		15,337
Fee income on deposit liabilities	4,879		4,262		14,122		12,029
Fee income on other financial products	2,416		2,124		7,663		6,767
Bank-owned life insurance	122		2,026		661		6,211
Mortgage banking income	181		1,272		1,630		7,497
Gain on sale of real estate	—		—		1,002		—
Gain on sale of investment securities, net	—		—		—		528
Other income, net	633		283		1,480		631
Total noninterest income	12,994		14,767		41,624		49,000
Noninterest expense
Compensation and employee benefits	28,597		30,888		83,478		86,595
Occupancy	5,577		5,157		16,996		15,226
Data processing	4,509		4,278		13,144		13,162
Services	2,751		2,272		7,712		7,609
Equipment	2,432		2,373		7,163		6,989
Office supplies, printing and postage	1,123		1,072		3,256		3,094
Marketing	925		995		2,877		2,308
FDIC insurance	914		808		2,613		2,412
Other expense	4,729		3,668		11,929		9,790
Total noninterest expense	51,557		51,511		149,168		147,185
Income before income taxes	27,281		25,241		79,605		102,335
Income taxes	6,525		5,976		17,513		23,230
Net income	20,756		19,265		62,092		79,105
Other comprehensive loss, net of taxes	(98,942)		(11,684)		(310,218)		(40,439)
Comprehensive income (loss)	$	(78,186)	$	7,581	$	(248,126)	$	38,666

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

	Three months ended September 30				Nine months ended September 30
(in thousands)	2022		2021		2022		2021
Interest and dividend income	$	68,417	$	61,441	$	191,228	$	182,127
Noninterest income	12,994		14,767		41,624		49,000
Less: Gain on sale of real estate	—		—		1,002		—
Less: Gain on sale of investment securities, net	—		—		—		528
*Revenues-Bank	81,411		76,208		231,850		230,599
Total interest expense	2,759		1,181		4,771		3,974
Provision for credit losses	(186)		(1,725)		(692)		(22,367)
Noninterest expense	51,557		51,511		149,168		147,185
Less: Gain on sale of real estate	—		—		1,002		—
Less: Retirement defined benefits credit—other than service costs	(181)		(184)		(552)		(1,648)
*Expenses-Bank	54,311		51,151		152,797		130,440
*Operating income-Bank	27,100		25,057		79,053		100,159
Add back: Retirement defined benefits credit—other than service costs	(181)		(184)		(552)		(1,648)
Add back: Gain on sale of investment securities, net	—		—		—		528
Income before income taxes	$	27,281	$	25,241	$	79,605	$	102,335

Schedule of statements of comprehensive income data

Statements of Income and Comprehensive Income Data

	Three months ended September 30				Nine months ended September 30
(in thousands)	2022		2021		2022		2021
Interest and dividend income
Interest and fees on loans	$	53,365	$	49,445	$	147,499	$	150,418
Interest and dividends on investment securities	15,052		11,996		43,729		31,709
Total interest and dividend income	68,417		61,441		191,228		182,127
Interest expense
Interest on deposit liabilities	1,704		1,176		3,572		3,919
Interest on other borrowings	1,055		5		1,199		55
Total interest expense	2,759		1,181		4,771		3,974
Net interest income	65,658		60,260		186,457		178,153
Provision for credit losses	(186)		(1,725)		(692)		(22,367)
Net interest income after provision for credit losses	65,844		61,985		187,149		200,520
Noninterest income
Fees from other financial services	4,763		4,800		15,066		15,337
Fee income on deposit liabilities	4,879		4,262		14,122		12,029
Fee income on other financial products	2,416		2,124		7,663		6,767
Bank-owned life insurance	122		2,026		661		6,211
Mortgage banking income	181		1,272		1,630		7,497
Gain on sale of real estate	—		—		1,002		—
Gain on sale of investment securities, net	—		—		—		528
Other income, net	633		283		1,480		631
Total noninterest income	12,994		14,767		41,624		49,000
Noninterest expense
Compensation and employee benefits	28,597		30,888		83,478		86,595
Occupancy	5,577		5,157		16,996		15,226
Data processing	4,509		4,278		13,144		13,162
Services	2,751		2,272		7,712		7,609
Equipment	2,432		2,373		7,163		6,989
Office supplies, printing and postage	1,123		1,072		3,256		3,094
Marketing	925		995		2,877		2,308
FDIC insurance	914		808		2,613		2,412
Other expense	4,729		3,668		11,929		9,790
Total noninterest expense	51,557		51,511		149,168		147,185
Income before income taxes	27,281		25,241		79,605		102,335
Income taxes	6,525		5,976		17,513		23,230
Net income	20,756		19,265		62,092		79,105
Other comprehensive loss, net of taxes	(98,942)		(11,684)		(310,218)		(40,439)
Comprehensive income (loss)	$	(78,186)	$	7,581	$	(248,126)	$	38,666

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

	Three months ended September 30				Nine months ended September 30
(in thousands)	2022		2021		2022		2021
Interest and dividend income	$	68,417	$	61,441	$	191,228	$	182,127
Noninterest income	12,994		14,767		41,624		49,000
Less: Gain on sale of real estate	—		—		1,002		—
Less: Gain on sale of investment securities, net	—		—		—		528
*Revenues-Bank	81,411		76,208		231,850		230,599
Total interest expense	2,759		1,181		4,771		3,974
Provision for credit losses	(186)		(1,725)		(692)		(22,367)
Noninterest expense	51,557		51,511		149,168		147,185
Less: Gain on sale of real estate	—		—		1,002		—
Less: Retirement defined benefits credit—other than service costs	(181)		(184)		(552)		(1,648)
*Expenses-Bank	54,311		51,151		152,797		130,440
*Operating income-Bank	27,100		25,057		79,053		100,159
Add back: Retirement defined benefits credit—other than service costs	(181)		(184)		(552)		(1,648)
Add back: Gain on sale of investment securities, net	—		—		—		528
Income before income taxes	$	27,281	$	25,241	$	79,605	$	102,335

Schedule of balance sheets data

Condensed Consolidating Balance Sheet

September 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	5,218,701		1,403,784	1,268,441	—	—	7,890,926
Right-of-use assets - finance lease	48,371		—	—	—	—	48,371
Less accumulated depreciation	(1,845,767)		(640,257)	(581,618)	—	—	(3,067,642)
Construction in progress	197,033		25,671	34,878	—	—	257,582
Utility property, plant and equipment, net	3,661,198		794,804	725,295	—	—	5,181,297
Nonutility property, plant and equipment, less accumulated depreciation	5,300		114	1,532	—	—	6,946
Total property, plant and equipment, net	3,666,498		794,918	726,827	—	—	5,188,243
Investment in wholly owned subsidiaries, at equity	689,016		—	—	—	(689,016)	—
Current assets
Cash and cash equivalents	13,295		5,154	2,778	77	—	21,304
Advances to affiliates	—		1,500	16,000	—	(17,500)	—
Customer accounts receivable, net	181,813		40,566	36,593	—	—	258,972
Accrued unbilled revenues, net	167,037		26,508	26,875	—	—	220,420
Other accounts receivable, net	26,795		4,615	4,691	—	(20,609)	15,492
Fuel oil stock, at average cost	184,981		20,817	23,927	—	—	229,725
Materials and supplies, at average cost	45,405		10,621	21,553	—	—	77,579
Prepayments and other	33,628		6,731	6,611	—	(1,172)	45,798
Regulatory assets	50,074		2,397	3,435	—	—	55,906
Total current assets	703,028		118,909	142,463	77	(39,281)	925,196
Other long-term assets
Operating lease right-of-use assets	44,802		35,953	12,954	—	—	93,709
Regulatory assets	298,759		73,845	68,678	—	—	441,282
Other	119,348		18,831	20,233	—	(296)	158,116
Total other long-term assets	462,909		128,629	101,865	—	(296)	693,107
Total assets	$	5,521,451	1,042,456	971,155	77	(728,593)	$	6,806,546
Capitalization and liabilities
Capitalization
Common stock equity	$	2,307,992	338,598	350,341	77	(689,016)	$	2,307,992
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,176,814		244,417	263,468	—	—	1,684,699
Total capitalization	3,507,099		590,015	618,809	77	(689,016)	4,026,984
Current liabilities
Current portion of operating lease liabilities	9,371		6,611	2,590	—	—	18,572
Current portion of long-term debt	39,996		11,999	—	—	—	51,995
Short-term borrowings from non-affiliates	97,450		—	—	—	—	97,450
Short-term borrowings from affiliate	17,500		—	—	—	(17,500)	—
Accounts payable	117,259		26,043	22,159	—	—	165,461
Interest and preferred dividends payable	20,800		3,822	4,583	—	(41)	29,164
Taxes accrued, including revenue taxes	181,935		39,023	36,557	—	(1,172)	256,343
Regulatory liabilities	15,349		6,451	7,518	—	—	29,318
Other	62,303		18,022	20,188	—	(20,725)	79,788
Total current liabilities	561,963		111,971	93,595	—	(39,438)	728,091
Deferred credits and other liabilities
Operating lease liabilities	43,275		29,517	10,519	—	—	83,311
Finance lease liabilities	46,468		—	—	—	—	46,468
Deferred income taxes	278,230		50,774	63,172	—	—	392,176
Regulatory liabilities	725,346		183,073	92,639	—	—	1,001,058
Unamortized tax credits	71,916		13,354	12,731	—	—	98,001
Defined benefit pension and other postretirement benefit plans liability	211,560		46,584	50,128	—	(139)	308,133
Other	75,594		17,168	29,562		—	122,324
Total deferred credits and other liabilities	1,452,389		340,470	258,751	—	(139)	2,051,471
Total capitalization and liabilities	$	5,521,451	1,042,456	971,155	77	(728,593)	$	6,806,546

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)	September 30, 2022				December 31, 2021
Assets
Cash and due from banks			$	143,618			$	100,051
Interest-bearing deposits			6,179				151,189
Cash and cash equivalents			149,797				251,240
Investment securities
Available-for-sale, at fair value			2,232,336				2,574,618
Held-to-maturity, at amortized cost (fair value of $411,191 and $510,474, respectively)			510,879				522,270
Stock in Federal Home Loan Bank, at cost			15,000				10,000
Loans held for investment			5,687,390				5,211,114
Allowance for credit losses			(70,406)				(71,130)
Net loans			5,616,984				5,139,984
Loans held for sale, at lower of cost or fair value			3,101				10,404
Other			705,324				590,897
Goodwill			82,190				82,190
Total assets			$	9,315,611			$	9,181,603
Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing			$	2,921,857			$	2,976,632
Deposit liabilities—interest-bearing			5,337,028				5,195,580
Other borrowings			409,040				88,305
Other			198,596				193,268
Total liabilities			8,866,521				8,453,785
Common stock			1				1
Additional paid-in capital			355,293				353,895
Retained earnings			441,796				411,704
Accumulated other comprehensive loss, net of tax benefits
Net unrealized losses on securities	$	(340,266)			$	(32,037)
Retirement benefit plans	(7,734)		(348,000)		(5,745)		(37,782)
Total shareholder’s equity			449,090				727,818
Total liabilities and shareholder’s equity			$	9,315,611			$	9,181,603
Other assets
Bank-owned life insurance			$	181,107			$	177,566
Premises and equipment, net			196,035				202,299
Accrued interest receivable			23,140				20,854
Mortgage-servicing rights			9,351				9,950
Low-income housing investments			110,700				110,989
Real estate acquired in settlement of loans, net			271				—
Real estate held for sale			3,030				—
Deferred tax asset			120,442				7,699
Other			61,248				61,540
			$	705,324			$	590,897
Other liabilities
Accrued expenses			$	94,782			$	87,905
Cashier’s checks			36,393				33,675
Advance payments by borrowers			4,488				9,994
Other			62,933				61,694
			$	198,596			$	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
September 30, 2022
Available-for-sale
U.S. Treasury and federal agency obligations	$	104,278	$	—	$	(7,865)	$	96,413	16	$	78,651	$	(5,672)	1	$	17,762	$	(2,193)
Mortgage-backed securities*	2,533,445		13		(452,503)		2,080,955		139	735,328		(110,054)		109	1,342,950		(342,449)
Corporate bonds	44,412		—		(4,477)		39,935		5	39,935		(4,477)		—	—		—
Mortgage revenue bonds	15,033		—		—		15,033		—	—		—		—	—		—
	$	2,697,168	$	13	$	(464,845)	$	2,232,336	160	$	853,914	$	(120,203)	110	$	1,360,712	$	(344,642)
Held-to-maturity
U.S. Treasury and Federal agency obligations	$	59,888	$	—	$	(8,918)	$	50,970	2	$	33,821	$	(6,106)	1	$	17,149	$	(2,812)
Mortgage-backed securities*	450,991		—		(90,770)		360,221		13	91,218		(19,048)		24	269,003		(71,722)
	$	510,879	$	—	$	(99,688)	$	411,191	15	$	125,039	$	(25,154)	25	$	286,152	$	(74,534)
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:

September 30, 2022	Amortized cost		Fair value
(in thousands)
Available-for-sale
Due in one year or less	$	15,239	$	15,195
Due after one year through five years	81,842		76,442
Due after five years through ten years	66,642		59,744
Due after ten years	—		—
	163,723		151,381
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	2,533,445		2,080,955
Total available-for-sale securities	$	2,697,168	$	2,232,336
Held-to-maturity
Due in one year or less	$	—	$	—
Due after one year through five years	—		—
Due after five years through ten years	59,888		50,970
Due after ten years	—		—
	59,888		50,970
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	450,991		360,221
Total held-to-maturity securities	$	510,879	$	411,191

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 September 30				Nine months ended September 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:

	September 30, 2022		December 31, 2021
(in thousands)
Real estate:
Residential 1-4 family	$	2,392,780	$	2,299,212
Commercial real estate	1,295,737		1,056,982
Home equity line of credit	967,153		835,663
Residential land	21,539		19,859
Commercial construction	89,185		91,080
Residential construction	20,303		11,138
Total real estate	4,786,697		4,313,934
Commercial	703,737		793,304
Consumer	216,744		113,966
Total loans	5,707,178		5,221,204
Less: Deferred fees and discounts	(19,788)		(10,090)
Allowance for credit losses	(70,406)		(71,130)
Total loans, net	$	5,616,984	$	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 September 30, 2022
Allowance for credit losses:
Beginning balance	$	8,520	$	20,900	$	6,096	$	677	$	2,634	$	46	$	12,413	$	18,170	$	69,456
Charge-offs	—		—		—		—		—		—		(143)		(1,503)		(1,646)
Recoveries	2		—		14		—		—		—		303		963		1,282
Provision	(938)		136		(167)		12		(1,635)		3		378		3,525		1,314
Ending balance	$	7,584	$	21,036	$	5,943	$	689	$	999	$	49	$	12,951	$	21,155	$	70,406
Three months ended September 30, 2021
Allowance for credit losses:
Beginning balance	$	5,518	$	28,708	$	5,335	$	618	$	1,629	$	16	$	20,058	$	16,370	$	78,252
Charge-offs	(47)		—		(5)		—		—		—		(266)		(1,597)		(1,915)
Recoveries	5		—		7		35		—		—		417		1,118		1,582
Provision	522		(2,750)		441		(19)		104		(3)		(758)		488		(1,975)
Ending balance	$	5,998	$	25,958	$	5,778	$	634	$	1,733	$	13	$	19,451	$	16,379	$	75,944
Nine months ended September 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	—		—		—		—		—		—		(367)		(4,354)		(4,721)
Recoveries	13		—		56		101		—		—		1,055		2,964		4,189
Provision	1,026		(3,660)		230		(58)		(1,187)		31		(3,535)		6,961		(192)
Ending balance	$	7,584	$	21,036	$	5,943	$	689	$	999	$	49	$	12,951	$	21,155	$	70,406
Nine months ended September 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	(67)		—		(45)		—		—		—		(1,356)		(6,388)		(7,856)
Recoveries	59		—		83		56		—		—		1,056		3,312		4,566
Provision	1,406		(9,649)		(1,073)		(31)		(2,416)		2		(5,711)		(4,495)		(21,967)
Ending balance	$	5,998	$	25,958	$	5,778	$	634	$	1,733	$	13	$	19,451	$	16,379	$	75,944

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 September 30, 2022
Allowance for loan commitments:
Beginning balance	$	400	$	4,100	$	1,400	$	5,900
Provision	—		(1,500)		—		(1,500)
Ending balance	$	400	$	2,600	$	1,400	$	4,400
Three months ended September 30, 2021
Allowance for loan commitments:
Beginning balance	$	400	$	2,400	$	850	$	3,650
Provision	—		300		(50)		250
Ending balance	$	400	$	2,700	$	800	$	3,900
Nine months ended September 30, 2022
Allowance for loan commitments:
Beginning balance	$	400	$	3,700	$	800	$	4,900
Provision	—		(1,100)		600		(500)
Ending balance	$	400	$	2,600	$	1,400	$	4,400
Nine months ended September 30, 2021
Allowance for loan commitments:
Beginning balance	$	300	$	3,000	$	1,000	$	4,300
Provision	100		(300)		(200)		(400)
Ending balance	$	400	$	2,700	$	800	$	3,900

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
September 30, 2022
Residential 1-4 family
Current	$	305,656	$	761,490	$	428,088	$	115,625	$	53,423	$	720,572	$	—	$	—	$	2,384,854
30-59 days past due	—		—		—		—		—		1,389		—		—		1,389
60-89 days past due	—		—		—		—		—		2,040		—		—		2,040
Greater than 89 days past due	—		—		267		—		809		3,421		—		—		4,497
	305,656		761,490		428,355		115,625		54,232		727,422		—		—		2,392,780
Home equity line of credit
Current	—		—		—		—		—		—		924,228		41,514		965,742
30-59 days past due	—		—		—		—		—		—		242		130		372
60-89 days past due	—		—		—		—		—		—		106		43		149
Greater than 89 days past due	—		—		—		—		—		—		427		463		890
	—		—		—		—		—		—		925,003		42,150		967,153
Residential land
Current	5,516		9,263		5,410		338		525		390		—		—		21,442
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		97		—		—		97
	5,516		9,263		5,410		338		525		487		—		—		21,539
Residential construction
Current	6,028		11,804		2,471		—		—		—		—		—		20,303
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		—		—		—		—
	6,028		11,804		2,471		—		—		—		—		—		20,303
Consumer
Current	152,156		24,939		7,779		11,509		1,487		167		11,097		4,536		213,670
30-59 days past due	786		181		119		303		43		—		41		74		1,547
60-89 days past due	229		111		50		162		35		—		23		53		663
Greater than 89 days past due	128		178		69		213		61		—		68		147		864
	153,299		25,409		8,017		12,187		1,626		167		11,229		4,810		216,744
Commercial real estate
Pass	293,602		179,753		297,137		51,953		57,857		297,949		4,235		—		1,182,486
Special Mention	—		11,250		3,467		40,838		415		27,202		—		—		83,172
Substandard	—		—		668		11,371		1,822		16,218		—		—		30,079
Doubtful	—		—		—		—		—		—		—		—		—
	293,602		191,003		301,272		104,162		60,094		341,369		4,235		—		1,295,737
Commercial construction
Pass	—		46,263		9,570		—		11,342		—		22,010		—		89,185
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
	—		46,263		9,570		—		11,342		—		22,010		—		89,185
Commercial
Pass	145,209		185,304		82,895		68,730		39,524		65,509		75,669		14,430		677,270
Special Mention	—		—		295		6,103		25		784		3,750		10		10,967
Substandard	422		2,496		143		766		1,355		4,819		4,382		1,117		15,500
Doubtful	—		—		—		—		—		—		—		—		—
	145,631		187,800		83,333		75,599		40,904		71,112		83,801		15,557		703,737
Total loans	$	909,732	$	1,233,032	$	838,428	$	307,911	$	168,723	$	1,140,557	$	1,046,278	$	62,517	$	5,707,178

	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
September 30, 2022
Real estate:
Residential 1-4 family	$	1,389	$	2,040	$	4,497	$	7,926	$	2,384,854	$	2,392,780	$	—
Commercial real estate	—		—		—		—		1,295,737		1,295,737		—
Home equity line of credit	372		149		890		1,411		965,742		967,153		—
Residential land	—		—		97		97		21,442		21,539		—
Commercial construction	—		—		—		—		89,185		89,185		—
Residential construction	—		—		—		—		20,303		20,303		—
Commercial	366		110		2,100		2,576		701,161		703,737		—
Consumer	1,547		663		864		3,074		213,670		216,744		—
Total loans	$	3,674	$	2,962	$	8,448	$	15,084	$	5,692,094	$	5,707,178	$	—
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)	September 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	$	6,125	$	4,219	$	10,344	$	16,045	$	3,703	$	19,748
Commercial real estate	—		—		—		14,104		1,221		15,325
Home equity line of credit	3,715		916		4,631		4,227		1,294		5,521
Residential land	312		97		409		97		300		397
Commercial construction	—		—		—		—		—		—
Residential construction	—		—		—		—		—		—
Commercial	2,591		811		3,402		1,446		692		2,138
Consumer	1,346		—		1,346		1,845		—		1,845
Total	$	14,089	$	6,043	$	20,132	$	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)	September 30, 2022		December 31, 2021
Real estate:
Residential 1-4 family	$	7,671	$	6,949
Commercial real estate	9,633		3,055
Home equity line of credit	4,814		6,021
Residential land	806		980
Commercial construction	—		—
Residential construction	—		—
Commercial	6,011		7,860
Consumer	51		52
Total troubled debt restructured loans accruing interest	$	28,986	$	24,917

Schedule of loan modifications

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

	Three months ended September 30, 2022					Nine months ended September 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	2	$	512	$	—	3	$	893	$	135
Commercial real estate	—	—		—		—	—		—
Home equity line of credit	—	—		—		—	—		—
Residential land	1	204		16		1	204		16
Commercial construction	—	—		—		—	—		—
Residential construction	—	—		—		—	—		—
Commercial	—	—		—		1	288		20
Consumer	—	—		—		—	—		—
	3	$	716	$	16	5	$	1,385	$	171

	Three months ended September 30, 2021					Nine months ended September 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	1	$	442	$	81	16	$	10,363	$	309
Commercial real estate	—	—		—		—	—		—
Home equity line of credit	—	—		—		—	—		—
Residential land	1	247		11		3	802		37
Commercial construction	—	—		—		—	—		—
Residential construction	—	—		—		—	—		—
Commercial	1	2,386		212		7	2,678		242
Consumer	—	—		—		—	—		—
	3	$	3,075	$	304	26	$	13,843	$	588

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)	September 30, 2022		December 31, 2021		Collateral type
Real estate:
Residential 1-4 family	$	4,699	$	3,493	Residential real estate property
Commercial real estate	—		1,221		Commercial real estate property
Home equity line of credit	899		1,294		Residential real estate property
Residential land	97		300		Residential real estate property
Total real estate	5,695		6,308
Commercial	187		692		Business assets
Total	$	5,882	$	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
September 30, 2022	$	19,454	$	(10,103)	$	—	$	9,351
December 31, 2021	18,674		(8,724)		—		9,950

Changes related to MSRs were as follows:

	Three months ended September 30,				Nine months ended September 30
(in thousands)	2022		2021		2022		2021
Mortgage servicing rights
Beginning balance	$	9,696	$	10,754	$	9,950	$	10,280
Amount capitalized	117		315		1,040		2,885
Amortization	(462)		(797)		(1,639)		(2,893)
Other-than-temporary impairment	—		—		—		—
Carrying amount before valuation allowance	9,351		10,272		9,351		10,272
Valuation allowance for mortgage servicing rights
Beginning balance	—		—		—		260
Provision	—		—		—		(260)
Other-than-temporary impairment	—		—		—		—
Ending balance	—		—		—		—
Net carrying value of mortgage servicing rights	$	9,351	$	10,272	$	9,351	$	10,272

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)	September 30, 2022			December 31, 2021
Unpaid principal balance	$	1,467,806		$	1,481,899
Weighted average note rate	3.36		%	3.38		%
Weighted average discount rate	9.25		%	9.25		%
Weighted average prepayment speed	6.72		%	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)	September 30, 2022		December 31, 2021
Prepayment rate:
25 basis points adverse rate change	$	(144)	$	(714)
50 basis points adverse rate change	(299)		(1,608)
Discount rate:
25 basis points adverse rate change	(177)		(129)
50 basis points adverse rate change	(351)		(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
September 30, 2022	$	284	$	—	$	284
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
September 30, 2022	$	284	$	285	$	—
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:

	September 30, 2022				December 31, 2021
(in thousands)	Notional amount		Fair value		Notional amount		Fair value
Interest rate lock commitments	$	5,635	$	(85)	$	39,377	$	638
Forward commitments	5,250		172		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	September 30, 2022				December 31, 2021
(in thousands)	Asset derivatives		Liability derivatives		Asset derivatives		Liability derivatives
Interest rate lock commitments	$	3	$	88	$	638	$	—
Forward commitments	172		—		—		11
	$	175	$	88	$	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 September 30,				Nine months ended September 30
(in thousands)		2022		2021		2022		2021
Interest rate lock commitments	Mortgage banking income	$	(129)	$	(63)	$	(722)	$	(4,228)
Forward commitments	Mortgage banking income	145		150		182		609
		$	16	$	87	$	(540)	$	(3,619)