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Bank segment (Tables)
 3 Months Ended
Mar. 31, 2016
Bank subsidiary  
Schedule of statements of income data
American Savings Bank, F.S.B.
Statements of Income Data
 
 
Three months ended March 31
(in thousands)
 
2016
 
2015
Interest and dividend income
 
 

 
 

Interest and fees on loans
 
$
48,437

 
$
45,198

Interest and dividends on investment securities
 
5,017

 
3,051

Total interest and dividend income
 
53,454

 
48,249

Interest expense
 
 

 
 

Interest on deposit liabilities
 
1,592

 
1,260

Interest on other borrowings
 
1,485

 
1,466

Total interest expense
 
3,077

 
2,726

Net interest income
 
50,377

 
45,523

Provision for loan losses
 
4,766

 
614

Net interest income after provision for loan losses
 
45,611

 
44,909

Noninterest income
 
 

 
 

Fees from other financial services
 
5,499

 
5,355

Fee income on deposit liabilities
 
5,156

 
5,315

Fee income on other financial products
 
2,205

 
1,889

Bank-owned life insurance
 
998

 
983

Mortgage banking income
 
1,195

 
1,822

Other income, net
 
333

 
735

Total noninterest income
 
15,386

 
16,099

Noninterest expense
 
 

 
 

Compensation and employee benefits
 
22,434

 
21,766

Occupancy
 
4,138

 
4,113

Data processing
 
3,172

 
3,116

Services
 
2,911

 
2,341

Equipment
 
1,663

 
1,701

Office supplies, printing and postage
 
1,365

 
1,483

Marketing
 
861

 
841

FDIC insurance
 
884

 
811

Other expense
 
3,975

 
4,205

Total noninterest expense
 
41,403

 
40,377

Income before income taxes
 
19,594

 
20,631

Income taxes
 
6,921

 
7,156

Net income
 
$
12,673

 
$
13,475
Schedule of statements of comprehensive income data
American Savings Bank, F.S.B.
Statements of Comprehensive Income Data
 
 
Three months ended March 31
(in thousands)
 
2016
 
2015
Net income
 
$
12,673

 
$
13,475

Other comprehensive income, net of taxes:
 
 

 
 

Net unrealized gains on available-for-sale investment securities:
 
 

 
 

Net unrealized gains on available-for-sale investment securities arising during the period, net of tax benefits of $4,905 and $2,278 for the respective periods
 
7,429

 
3,451

Retirement benefit plans:
 
 

 
 

Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $137 and $259 for the respective periods
 
208

 
392

Other comprehensive income, net of taxes
 
7,637

 
3,843

Comprehensive income
 
$
20,310

 
$
17,318
Schedule of balance sheets data
American Savings Bank, F.S.B.
Balance Sheets Data
(in thousands)
 
March 31, 2016
 
December 31, 2015
Assets
 
 

 
 

 
 

 
 

Cash and due from banks
 
 

 
$
110,200

 
 

 
$
127,201

Interest-bearing deposits
 
 
 
120,428

 
 
 
93,680

Available-for-sale investment securities, at fair value
 
 

 
906,295

 
 

 
820,648

Stock in Federal Home Loan Bank, at cost
 
 

 
11,218

 
 

 
10,678

Loans receivable held for investment
 
 

 
4,642,276

 
 

 
4,615,819

Allowance for loan losses
 
 

 
(52,326
)
 
 

 
(50,038
)
Net loans
 
 

 
4,589,950

 
 

 
4,565,781

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

 
7,900

 
 

 
4,631

Other
 
 

 
312,333

 
 

 
309,946

Goodwill
 
 

 
82,190

 
 

 
82,190

Total assets
 
 

 
$
6,140,514

 
 

 
$
6,014,755

 
 
 
 
 
 
 
 
 
Liabilities and shareholder’s equity
 
 

 
 

 
 

 
 

Deposit liabilities—noninterest-bearing
 
 

 
$
1,541,402

 
 

 
$
1,520,374

Deposit liabilities—interest-bearing
 
 

 
3,598,530

 
 

 
3,504,880

Other borrowings
 
 

 
329,081

 
 

 
328,582

Other
 
 

 
99,605

 
 

 
101,029

Total liabilities
 
 

 
5,568,618

 
 

 
5,454,865

Commitments and contingencies
 
 

 


 
 

 


Common stock
 
 

 
1

 
 

 
1

Additional paid in capital
 
 
 
341,192

 
 
 
340,496

Retained earnings
 
 

 
240,337

 
 

 
236,664

Accumulated other comprehensive loss, net of tax benefits
 
 

 
 

 
 

 
 

Net unrealized gains (losses) on securities
 
$
5,556

 
 

 
$
(1,872
)
 
 

Retirement benefit plans
 
(15,190
)
 
(9,634
)
 
(15,399
)
 
(17,271
)
Total shareholder’s equity
 
 

 
571,896

 
 

 
559,890

Total liabilities and shareholder’s equity
 
 

 
$
6,140,514

 
 

 
$
6,014,755

 
 
 
 
 
 
 
 
 
Other assets
 
 

 
 

 
 

 
 

Bank-owned life insurance
 
 

 
$
138,732

 
 

 
$
138,139

Premises and equipment, net
 
 

 
89,525

 
 

 
88,077

Prepaid expenses
 
 

 
5,329

 
 

 
3,550

Accrued interest receivable
 
 

 
15,723

 
 

 
15,192

Mortgage-servicing rights
 
 

 
8,857

 
 

 
8,884

Low-income housing equity investments
 
 
 
36,450

 
 
 
37,793

Real estate acquired in settlement of loans, net
 
 

 
797

 
 

 
1,030

Other
 
 

 
16,920

 
 

 
17,281

 
 
 

 
$
312,333

 
 

 
$
309,946

Other liabilities
 
 

 
 

 
 

 
 

Accrued expenses
 
 

 
$
26,055

 
 

 
$
30,705

Federal and state income taxes payable
 
 

 
22,324

 
 

 
13,448

Cashier’s checks
 
 

 
21,542

 
 

 
21,768

Advance payments by borrowers
 
 

 
6,403

 
 

 
10,311

Other
 
 

 
23,281

 
 

 
24,797

 
 
 

 
$
99,605

 
 

 
$
101,029
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
March 31, 2016
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency obligations
 
$
215,716

 
$
3,078

 
$
(97
)
 
$
218,697

 
—

 
$
—

 
$
—

 
2

 
$
9,511

 
$
(97
)
Mortgage-related securities- FNMA, FHLMC and GNMA
 
681,354

 
7,852

 
(1,608
)
 
687,598

 
9

 
67,217

 
(256
)
 
21

 
100,991

 
(1,352
)
 
 
$
897,070

 
$
10,930

 
$
(1,705
)
 
$
906,295

 
9

 
$
67,217

 
$
(256
)
 
23

 
$
110,502

 
$
(1,449
)
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agency obligations
 
$
213,234

 
$
1,025

 
$
(1,300
)
 
$
212,959

 
13

 
$
83,053

 
$
(866
)
 
3

 
$
17,378

 
$
(434
)
Mortgage-related securities- FNMA, FHLMC and GNMA
 
610,522

 
3,564

 
(6,397
)
 
607,689

 
38

 
305,785

 
(2,866
)
 
25

 
125,817

 
(3,531
)
 
 
$
823,756

 
$
4,589

 
$
(7,697
)
 
$
820,648

 
51

 
$
388,838

 
$
(3,732
)
 
28

 
$
143,195

 
$
(3,965
)
Schedule of contractual maturities of available-for-sale securities
The contractual maturities of available-for-sale investment securities were as follows:
March 31, 2016
 
Amortized cost
 
Fair value
(in thousands)
 
 
 
 
Due in one year or less
 
$
—

 
$
—

Due after one year through five years
 
111,299

 
112,991

Due after five years through ten years
 
66,398

 
67,413

Due after ten years
 
38,019

 
38,293

 
 
215,716

 
218,697

Mortgage-related securities-FNMA,FHLMC and GNMA
 
681,354

 
687,598

Total available-for-sale securities
 
$
897,070

 
$
906,295
Schedule of allowance for loan losses
The allowance for loan losses (balances and changes) and financing receivables were as follows:
(in thousands)
 
Residential
1-4 family
 
Commercial real
estate
 
Home
equity line of credit
 
Residential land
 
Commercial construction
 
Residential construction
 
Commercial loans
 
Consumer loans
 
Unallocated
 
Total
Three months ended March 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
4,186

 
$
11,342

 
$
7,260

 
$
1,671

 
$
4,461

 
$
13

 
$
17,208

 
$
3,897

 
$
—

 
$
50,038

Charge-offs
 
(45
)
 
—

 
—

 
—

 
—

 
—

 
(1,343
)
 
(1,570
)
 
—

 
(2,958
)
Recoveries
 
17

 
—

 
15

 
103

 
—

 
—

 
135

 
210

 
—

 
480

Provision
 
435

 
464

 
(103
)
 
(34
)
 
1,703

 
(1
)
 
991

 
1,311

 
—

 
4,766

Ending balance
 
$
4,593

 
$
11,806

 
$
7,172

 
$
1,740

 
$
6,164

 
$
12

 
$
16,991

 
$
3,848

 
$
—

 
$
52,326

March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
1,653

 
$
50

 
$
629

 
$
841

 
$
—

 
$
—

 
$
3,643

 
$
7

 
 
 
$
6,823

Ending balance: collectively evaluated for impairment
 
$
2,940

 
$
11,756

 
$
6,543

 
$
899

 
$
6,164

 
$
12

 
$
13,348

 
$
3,841

 
$
—

 
$
45,503

Financing Receivables:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
2,055,020

 
$
703,661

 
$
846,467

 
$
18,940

 
$
130,487

 
$
16,241

 
$
740,596

 
$
136,244

 
 
 
$
4,647,656

Ending balance: individually evaluated for impairment
 
$
22,585

 
$
3,727

 
$
3,820

 
$
4,477

 
$
—

 
$
—

 
$
26,099

 
$
13

 
 
 
$
60,721

Ending balance: collectively evaluated for impairment
 
$
2,032,435

 
$
699,934

 
$
842,647

 
$
14,463

 
$
130,487

 
$
16,241

 
$
714,497

 
$
136,231

 
 
 
$
4,586,935

Three months ended March 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
4,662

 
$
8,954

 
$
6,982

 
$
1,875

 
$
5,471

 
$
28

 
$
14,017

 
$
3,629

 
$
—

 
$
45,618

Charge-offs
 
(156
)
 
—

 
(3
)
 
—

 
—

 
—

 
(46
)
 
(942
)
 
—

 
(1,147
)
Recoveries
 
12

 
—

 
31

 
49

 
—

 
—

 
341

 
277

 
—

 
710

Provision
 
403

 
2,274

 
(487
)
 
362

 
(2,634
)
 
(7
)
 
268

 
435

 
—

 
614

Ending balance
 
$
4,921

 
$
11,228

 
$
6,523

 
$
2,286

 
$
2,837

 
$
21

 
$
14,580

 
$
3,399

 
$
—

 
$
45,795

December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
1,453

 
$
—

 
$
442

 
$
891

 
$
—

 
$
—

 
$
3,527

 
$
7

 
 
 
$
6,320

Ending balance: collectively evaluated for impairment
 
$
2,733

 
$
11,342

 
$
6,818

 
$
780

 
$
4,461

 
$
13

 
$
13,681

 
$
3,890

 
$
—

 
$
43,718

Financing Receivables:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
2,069,665

 
$
690,561

 
$
846,294

 
$
18,229

 
$
100,796

 
$
14,089

 
$
758,659

 
$
123,775

 
 
 
$
4,622,068

Ending balance: individually evaluated for impairment
 
$
22,457

 
$
1,188

 
$
3,225

 
$
5,683

 
$
—

 
$
—

 
$
21,119

 
$
13

 
 
 
$
53,685

Ending balance: collectively evaluated for impairment
 
$
2,047,208

 
$
689,373

 
$
843,069

 
$
12,546

 
$
100,796

 
$
14,089

 
$
737,540

 
$
123,762

 
 
 
$
4,568,383
Schedule of credit risk profile by internally assigned grade for loans
The credit risk profile by internally assigned grade for loans was as follows:
 
 
March 31, 2016
 
December 31, 2015
(in thousands)
 
Commercial
real estate
 
Commercial
construction
 
Commercial
 
Commercial
real estate
 
Commercial
construction
 
Commercial
Grade:
 
 

 
 

 
 

 
 

 
 

 
 

Pass
 
$
655,307

 
$
110,744

 
$
679,370

 
$
642,410

 
$
86,991

 
$
703,208

Special mention
 
16,096

 
—

 
12,662

 
7,710

 
13,805

 
7,029

Substandard
 
32,258

 
19,743

 
48,302

 
40,441

 
—

 
47,975

Doubtful
 
—

 
—

 
262

 
—

 
—

 
447

Loss
 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
703,661

 
$
130,487

 
$
740,596

 
$
690,561

 
$
100,796

 
$
758,659
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
March 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
5,537

 
$
2,215

 
$
10,626

 
$
18,378

 
$
2,036,642

 
$
2,055,020

 
$
—

Commercial real estate
 
—

 
—

 
—

 
—

 
703,661

 
703,661

 
—

Home equity line of credit
 
1,218

 
508

 
340

 
2,066

 
844,401

 
846,467

 
—

Residential land
 
—

 
—

 
148

 
148

 
18,792

 
18,940

 
—

Commercial construction
 
—

 
—

 
—

 
—

 
130,487

 
130,487

 
—

Residential construction
 
—

 
—

 
—

 
—

 
16,241

 
16,241

 
—

Commercial
 
391

 
984

 
308

 
1,683

 
738,913

 
740,596

 
—

Consumer
 
1,249

 
579

 
446

 
2,274

 
133,970

 
136,244

 
—

Total loans
 
$
8,395

 
$
4,286

 
$
11,868

 
$
24,549

 
$
4,623,107

 
$
4,647,656

 
$
—

December 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
4,967

 
$
3,289

 
$
11,503

 
$
19,759

 
$
2,049,906

 
$
2,069,665

 
$
—

Commercial real estate
 
—

 
—

 
—

 
—

 
690,561

 
690,561

 
—

Home equity line of credit
 
896

 
706

 
477

 
2,079

 
844,215

 
846,294

 
—

Residential land
 
—

 
—

 
415

 
415

 
17,814

 
18,229

 
—

Commercial construction
 
—

 
—

 
—

 
—

 
100,796

 
100,796

 
—

Residential construction
 
—

 
—

 
—

 
—

 
14,089

 
14,089

 
—

Commercial
 
125

 
223

 
878

 
1,226

 
757,433

 
758,659

 
—

Consumer
 
1,383

 
593

 
644

 
2,620

 
121,155

 
123,775

 
—

Total loans
 
$
7,371

 
$
4,811

 
$
13,917

 
$
26,099

 
$
4,595,969

 
$
4,622,068

 
$
—
Schedule of credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due
The credit risk profile based on nonaccrual loans, accruing loans 90 days or more past due and TDR loans was as follows:
(in thousands)
 
March 31, 2016
 
December 31, 2015
Real estate:
 
 

 
 

Residential 1-4 family
 
$
21,028

 
$
20,554

Commercial real estate
 
3,727

 
1,188

Home equity line of credit
 
2,801

 
2,254

Residential land
 
698

 
970

Commercial construction
 
—

 
—

Residential construction
 
—

 
—

Commercial
 
17,862

 
20,174

Consumer
 
797

 
895

  Total nonaccrual loans
 
$
46,913

 
$
46,035

Real estate:
 
 
 
 
Residential 1-4 family
 
$
—

 
$
—

Commercial real estate
 
—

 
—

Home equity line of credit
 
—

 
—

Residential land
 
—

 
—

Commercial construction
 
—

 
—

Residential construction
 
—

 
—

Commercial
 
—

 
—

Consumer
 
—

 
—

     Total accruing loans 90 days or more past due
 
$
—

 
$
—

Real estate:
 
 
 
 
Residential 1-4 family
 
$
13,803

 
$
13,962

Commercial real estate
 
—

 
—

Home equity line of credit
 
2,643

 
2,467

Residential land
 
3,779

 
4,713

Commercial construction
 
—

 
—

Residential construction
 
—

 
—

Commercial
 
8,400

 
1,104

Consumer
 
—

 
—

     Total troubled debt restructured loans not included above
 
$
28,625

 
$
22,246
Schedule of the carrying amount and the total unpaid principal balance of impaired loans, with and without recorded allowance for loans losses
The total carrying amount and the total unpaid principal balance of impaired loans were as follows:
 
 
March 31, 2016
 
Three months ended March 31, 2016
(in thousands)
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
Allowance
 
Average
recorded
investment
 
Interest
income
recognized*
With no related allowance recorded
 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
10,502

 
$
11,606

 
$
—

 
$
10,392

 
$
51

Commercial real estate
 
1,166

 
1,429

 
—

 
1,173

 
—

Home equity line of credit
 
913

 
1,159

 
—

 
849

 
—

Residential land
 
1,489

 
2,185

 
—

 
1,590

 
16

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial
 
5,079

 
5,831

 
—

 
4,999

 
6

Consumer
 
—

 
—

 
—

 
—

 
—

 
 
$
19,149

 
$
22,210

 
$
—

 
$
19,003

 
$
73

With an allowance recorded
 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
12,083

 
$
12,286

 
$
1,653

 
$
12,018

 
$
122

Commercial real estate
 
2,561

 
2,570

 
50

 
854

 
—

Home equity line of credit
 
2,907

 
2,977

 
629

 
2,944

 
27

Residential land
 
2,988

 
2,988

 
841

 
3,378

 
67

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial
 
21,020

 
21,714

 
3,643

 
16,970

 
30

Consumer
 
13

 
13

 
7

 
13

 
—

 
 
$
41,572

 
$
42,548

 
$
6,823

 
$
36,177

 
$
246

Total
 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
22,585

 
$
23,892

 
$
1,653

 
$
22,410

 
$
173

Commercial real estate
 
3,727

 
3,999

 
50

 
2,027

 
—

Home equity line of credit
 
3,820

 
4,136

 
629

 
3,793

 
27

Residential land
 
4,477

 
5,173

 
841

 
4,968

 
83

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial
 
26,099

 
27,545

 
3,643

 
21,969

 
36

Consumer
 
13

 
13

 
7

 
13

 
—

 
 
$
60,721

 
$
64,758

 
$
6,823

 
$
55,180

 
$
319


 
 
December 31, 2015
 
Three months ended March 31, 2015
(in thousands)
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
allowance
 
Average
recorded
investment
 
Interest
income
recognized*
With no related allowance recorded
 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
10,596

 
$
11,805

 
$
—

 
$
11,552

 
$
89

Commercial real estate
 
1,188

 
1,436

 
—

 
555

 
—

Home equity line of credit
 
707

 
948

 
—

 
400

 
1

Residential land
 
1,644

 
2,412

 
—

 
2,637

 
52

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial
 
5,671

 
6,333

 
—

 
7,295

 
2

Consumer
 
—

 
—

 
—

 
—

 
—

 
 
$
19,806

 
$
22,934

 
$
—

 
$
22,439

 
$
144

With an allowance recorded
 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
11,861

 
$
11,914

 
$
1,453

 
$
11,510

 
$
126

Commercial real estate
 
—

 
—

 
—

 
4,482

 
—

Home equity line of credit
 
2,518

 
2,579

 
442

 
626

 
6

Residential land
 
4,039

 
4,117

 
891

 
5,189

 
83

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial
 
15,448

 
16,073

 
3,527

 
4,982

 
50

Consumer
 
13

 
13

 
7

 
15

 
—

 
 
$
33,879

 
$
34,696

 
$
6,320

 
$
26,804

 
$
265

Total
 
 

 
 

 
 

 
 

 
 

Real estate:
 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
 
$
22,457

 
$
23,719

 
$
1,453

 
$
23,062

 
$
215

Commercial real estate
 
1,188

 
1,436

 
—

 
5,037

 
—

Home equity line of credit
 
3,225

 
3,527

 
442

 
1,026

 
7

Residential land
 
5,683

 
6,529

 
891

 
7,826

 
135

Commercial construction
 
—

 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

 
—

Commercial
 
21,119

 
22,406

 
3,527

 
12,277

 
52

Consumer
 
13

 
13

 
7

 
15

 
—

 
 
$
53,685

 
$
57,630

 
$
6,320

 
$
49,243

 
$
409

 
*
Since loan was classified as impaired.
Schedule of loan modifications
Loan modifications that occurred and the impact on the allowance for loan losses were as follows:
 
 
Three months ended March 31, 2016
 
 
Number of contracts
 
Outstanding recorded 
investment1
 
Net increase in allowance
(dollars in thousands)
 
 
Pre-modification
 
Post-modification
 
(as of period end)
Troubled debt restructurings
 
 

 
 

 
 

 
 
Real estate:
 
 

 
 

 
 

 
 
Residential 1-4 family
 
4

 
$
1,097

 
$
1,215

 
$
161

Commercial real estate
 
—

 
—

 
—

 
—

Home equity line of credit
 
10

 
669

 
669

 
74

Residential land
 
—

 
—

 
—

 
—

Commercial construction
 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

Commercial
 
3

 
16,200

 
16,200

 
525

Consumer
 
—

 
—

 
—

 
—

 
 
17

 
$
17,966

 
$
18,084

 
$
760


 
 
Three months ended March 31, 2015
 
 
Number of contracts
 
Outstanding recorded 
investment1
 
Net increase in allowance
(dollars in thousands)
 
 
Pre-modification
 
Post-modification
 
(as of period end)
Troubled debt restructurings
 
 
 
 

 
 

 
 
Real estate:
 
 
 
 

 
 

 
 
Residential 1-4 family
 
5

 
$
877

 
$
895

 
$
47

Commercial real estate
 
—

 
—

 
—

 
—

Home equity line of credit
 
9

 
429

 
429

 
55

Residential land
 
—

 
—

 
—

 
—

Commercial construction
 
—

 
—

 
—

 
—

Residential construction
 
—

 
—

 
—

 
—

Commercial
 
1

 
92

 
92

 
—

Consumer
 
—

 
—

 
—

 
—

 
 
15

 
$
1,398

 
$
1,416

 
$
102


1
The reported balances include loans that became TDR during the period, and were fully paid-off, charged-off, or sold prior to period end.
Schedule of troubled debt restructuring on financing receivables that experienced default
Loans modified in TDRs that experienced a payment default of 90 days or more during the three months ended March 31, 2016 and 2015, and for which the payment of default occurred within one year of the modification, were as follows:
Three months ended March 31
 
2016
 
2015
(dollars in thousands)
 
Number of contracts
 
Recorded investment
 
Number of contracts
 
Recorded investment
Troubled debt restructurings that
 subsequently defaulted
 
 
 
 
 
 
 
 
Real estate:
 
 
 
 

 
 
 
 

Residential 1-4 family
 
1
 
$
488

 
—
 
$
—

Commercial real estate
 
—
 
—

 
—
 
—

Home equity line of credit
 
—
 
—

 
—
 
—

Residential land
 
—
 
—

 
—
 
—

Commercial construction
 
—
 
—

 
—
 
—

Residential construction
 
—
 
—

 
—
 
—

Commercial
 
—
 
—

 
—
 
—

Consumer
 
—
 
—

 
—
 
—

 
 
1
 
$
488

 
—
 
$
—
Schedule of amortized intangible assets
Changes in the carrying value of mortgage servicing rights were as follows:
(in thousands)
 
Gross
carrying amount1
 
Accumulated amortization1
 
Valuation allowance
 
Net
carrying amount
March 31, 2016
 
$
14,986

 
$
(6,129
)
 
$
—

 
$
8,857

December 31, 2015
 
14,531

 
(5,647
)
 
—

 
8,884

1 Reflects the impact of loans paid in full.

Changes related to mortgage servicing rights were as follows:
(in thousands)
2016

 
2015

Mortgage servicing rights
 
 
 
Balance, January 1
$
8,884

 
$
11,749

Amount capitalized
455

 
906

Amortization
(482
)
 
(647
)
Other-than-temporary impairment
—

 
(2
)
Carrying amount before valuation allowance, March 31
8,857

 
12,006

Valuation allowance for mortgage servicing rights
 
 
 
Balance, January 1
—

 
209

Provision (recovery)
—

 
(166
)
Other-than-temporary impairment
—

 
(2
)
Balance, March 31
—

 
41

Net carrying value of mortgage servicing rights
$
8,857

 
$
11,965
Schedule of key assumptions used in estimating fair value
Key assumptions used in estimating the fair value of ASB’s mortgage servicing rights used in the impairment analysis were as follows:
(dollars in thousands)
 
March 31, 2016

 
December 31, 2015

Unpaid principal balance
 
$
1,114,800

 
$
1,097,314

Weighted average note rate
 
4.04
%
 
4.05
%
Weighted average discount rate
 
9.6
%
 
9.6
%
Weighted average prepayment speed
 
10.8
%
 
9.3
%
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis:
 
 
 
 
 
 
 
 
 
Significant unobservable
 input value (1)
($ in thousands)
 
Fair value
 
Valuation technique
 
Significant unobservable input
 
Range
 
Weighted
Average
March 31, 2016
 
 
 
 
 
 
 
 
 
 
Residential loans
 
$
82

 
Fair value of property or collateral
 
Appraised value less 7% selling costs
 
42-66%
 
54%
Real estate acquired in settlement of loans
 
$
797

 
Fair value of property or collateral
 
Appraised value less 7% selling costs
 
100%
 
100%
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
Residential loans
 
$
50

 
Fair value of property or collateral
 
Appraised value less 7% selling costs
 
 
 
N/A (2)
Home equity lines of credit
 
128

 
Fair value of property or collateral
 
Appraised value less 7% selling costs
 
 
 
N/A (2)
Total loans
 
$
178

 
 
 
 
 
 
 
 
Real estate acquired in settlement of loans
 
$
1,030

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 
100%
 
100%
(1) Represent percent of outstanding principal balance.
(2)
N/A - Not applicable. There is one loan in each fair value measurement type.
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets
The sensitivity analysis of fair value of MSR to hypothetical adverse changes of 25 and 50 basis points in certain key assumptions was as follows:
(dollars in thousands)
 
March 31, 2016

 
December 31, 2015

Prepayment rate:
 
 
 
 
  25 basis points adverse rate change
 
$
(537
)
 
$
(561
)
  50 basis points adverse rate change
 
(1,008
)
 
(1,104
)
Discount rate:
 
 
 
 
  25 basis points adverse rate change
 
(99
)
 
(111
)
  50 basis points adverse rate change
 
(196
)
 
(220
)
Schedule of securities sold under agreements to repurchase
The following tables present information about the securities sold under agreements to repurchase, including the related collateral received from or pledged to counterparties:
(in millions)
 
Gross amount of
recognized liabilities
 
Gross amount offset in
the Balance Sheet
 
Net amount of liabilities presented
in the Balance Sheet
Repurchase agreements
 
 
 
 
 
 
March 31, 2016
 
$229
 
$—
 
$229
December 31, 2015
 
229
 
—
 
229
 
 
Gross amount not offset in the Balance Sheet
(in millions)
 
 
Liabilities presented
in the Balance Sheet
 
Financial
instruments
 
Cash
collateral
pledged
March 31, 2016
 
 

 
 

 
 

Financial institution
 
$
50

 
$
57

 
$
—

Government entities
 
37

 
44

 
—

Commercial account holders
 
142

 
161

 
—

Total
 
$
229

 
$
262

 
$
—

December 31, 2015
 
 

 
 

 
 

Financial institution
 
$
50

 
$
56

 
$
—

Government entities
 
56

 
61

 
—

Commercial account holders
 
123

 
144

 
—

Total
 
$
229

 
$
261

 
$
—
Schedule of notional and fair value of derivatives
The notional amount and fair value of ASB’s derivative financial instruments were as follows:
 
 
March 31, 2016
 
December 31, 2015
(in thousands)
 
Notional amount
 
Fair value
 
Notional amount
 
Fair value
Interest rate lock commitments
 
$
32,135

 
$
655

 
$
22,241

 
$
384

Forward commitments
 
30,516

 
(192
)
 
23,644

 
(29
)
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
 
March 31, 2016
 
December 31, 2015
(in thousands)
 
 Asset derivatives
 
 Liability
derivatives
 
 Asset derivatives
 
 Liability
derivatives
Interest rate lock commitments
 
$
655

 
$
—

 
$
384

 
$
—

Forward commitments
 
—

 
192

 
1

 
30

 
 
$
655

 
$
192

 
$
385

 
$
30

1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets.
Schedule of derivative financial instruments and net gain or loss
The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in the statements of income:
Derivative Financial Instruments Not Designated as Hedging Instruments
Location of net gains (losses) recognized in the Statement of Income
 
Three months ended March 31
(in thousands)
 
2016
 
2015
Interest rate lock commitments
Mortgage banking income
 
$
271

 
$
445

Forward commitments
Mortgage banking income
 
(163
)
 
(159
)
 
 
 
$
108

 
$
286