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Fair value measurements (Tables) | 3 Months Ended
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Mar. 31, 2021
Fair Value Disclosures [Abstract] |
Schedule of estimated fair values of certain of the Company's financial instruments | The following table presents the carrying or notional amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments.
|  |  |  | Estimated fair value
(in thousands) |  | Carrying or notional amount |  | Quoted prices in active markets for identical assets (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3) |  | Total
March 31, 2021 |  |  |  |  |  |  |  |  |  |
Financial assets |  |  |  |  |  |  |  |  |  |
HEI consolidated |  |  |  |  |  |  |  |  |  |
Available-for-sale investment securities |  | $ | 2,305,257 |  |  | $ | — |  |  | $ | 2,289,830 |  |  | $ | 15,427 |  |  | $ | 2,305,257 |
Held-to-maturity investment securities |  | 295,046 |  |  | — |  |  | 285,599 |  |  | — |  |  | 285,599 |
Loans, net |  | 5,241,925 |  |  | — |  |  | 23,637 |  |  | 5,352,496 |  |  | 5,376,133 |
Mortgage servicing rights |  | 10,685 |  |  | — |  |  | — |  |  | 13,659 |  |  | 13,659 |
Derivative assets |  | 103,077 |  |  | 340 |  |  | 745 |  |  | — |  |  | 1,085 |
Financial liabilities |  |  |  |  |  |  |  |  |  |
HEI consolidated |  |  |  |  |  |  |  |  |  |
Deposit liabilities |  | 514,303 |  |  | — |  |  | 516,524 |  |  | — |  |  | 516,524 |
Short-term borrowings—other than bank |  | 100,242 |  |  | — |  |  | 100,242 |  |  | — |  |  | 100,242 |
Other bank borrowings |  | 102,685 |  |  | — |  |  | 102,684 |  |  | — |  |  | 102,684 |
Long-term debt, net—other than bank |  | 2,229,738 |  |  | — |  |  | 2,492,539 |  |  | — |  |  | 2,492,539 |
Derivative liabilities |  | 32,739 |  |  | — |  |  | 2,834 |  |  | — |  |  | 2,834 |
Hawaiian Electric consolidated |  |  |  |  |  |  |  |  |  |
Long-term debt, net |  | 1,675,863 |  |  | — |  |  | 1,904,613 |  |  | — |  |  | 1,904,613 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |
Financial assets |  |  |  |  |  |  |  |  |  |
HEI consolidated |  |  |  |  |  |  |  |  |  |
Available-for-sale investment securities |  | $ | 1,970,417 |  |  | $ | — |  |  | $ | 1,943,232 |  |  | $ | 27,185 |  |  | $ | 1,970,417 |
Held-to-maturity investment securities |  | 226,947 |  |  | — |  |  | 229,963 |  |  | — |  |  | 229,963 |
Loans, net |  | 5,260,917 |  |  | — |  |  | 28,354 |  |  | 5,410,976 |  |  | 5,439,330 |
Mortgage servicing rights |  | 10,020 |  |  | — |  |  | — |  |  | 10,705 |  |  | 10,705 |
Derivative assets |  | 120,980 |  |  | — |  |  | 4,536 |  |  | — |  |  | 4,536 |
Financial liabilities |  |  |  |  |  |  |  |  |  |
HEI consolidated |  |  |  |  |  |  |  |  |  |
Deposit liabilities |  | 548,830 |  |  | — |  |  | 552,800 |  |  | — |  |  | 552,800 |
Short-term borrowings—other than bank |  | 129,379 |  |  | — |  |  | 129,379 |  |  | — |  |  | 129,379 |
Other bank borrowings |  | 89,670 |  |  | — |  |  | 89,669 |  |  | — |  |  | 89,669 |
Long-term debt, net—other than bank |  | 2,119,129 |  |  | — |  |  | 2,487,790 |  |  | — |  |  | 2,487,790 |
Derivative liabilities |  | 137,500 |  |  | 500 |  |  | 4,530 |  |  | — |  |  | 5,030 |
Hawaiian Electric consolidated |  |  |  |  |  |  |  |  |  |
Short-term borrowings |  | 49,979 |  |  | — |  |  | 49,979 |  |  | — |  |  | 49,979 |
Long-term debt, net |  | 1,561,302 |  |  | — |  |  | 1,890,490 |  |  | — |  |  | 1,890,490 |
Schedule of assets measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis were as follows:
|  | March 31, 2021 |  | December 31, 2020
|  | Fair value measurements using |  | Fair value measurements using
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Level 1 |  | Level 2 |  | Level 3
Available-for-sale investment securities (bank segment) |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies |  | $ | — |  |  | $ | 2,201,352 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,849,559 |  |  | $ | — |
U.S. Treasury and federal agency obligations |  | — |  |  | 57,647 |  |  | — |  |  | — |  |  | 62,322 |  |  | — |
Corporate bonds |  | — |  |  | 30,831 |  |  | — |  |  | — |  |  | 31,351 |  |  | — |
Mortgage revenue bonds |  | — |  |  | — |  |  | 15,427 |  |  | — |  |  | — |  |  | 27,185 |
|  | $ | — |  |  | $ | 2,289,830 |  |  | $ | 15,427 |  |  | $ | — |  |  | $ | 1,943,232 |  |  | $ | 27,185 |
Derivative assets |  |  |  |  |  |  |  |  |  |  |  |
Interest rate lock commitments (bank segment)1 |  | $ | — |  |  | $ | 456 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,536 |  |  | $ | — |
Forward commitments (bank segment)1 |  | 340 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Interest rate swap (Other segment)2 |  | — |  |  | 289 |  |  | — |  |  | — |  |  | — |  |  | — |
|  | $ | 340 |  |  | $ | 745 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,536 |  |  | $ | — |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |  |
Interest rate lock commitments (bank segment)1 |  | $ | — |  |  | $ | 18 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Forward commitments (bank segment)1 |  | — |  |  | — |  |  | — |  |  | 500 |  |  | — |  |  | — |
Interest rate swap (Other segment)2 |  | — |  |  | 2,816 |  |  | — |  |  | — |  |  | 4,530 |  |  | — |
|  | $ | — |  |  | $ | 2,834 |  |  | $ | — |  |  | $ | 500 |  |  | $ | 4,530 |  |  | $ | — |
1 Derivatives are carried at fair value in other assets or other liabilities in the balance sheets with changes in value included in mortgage banking income. 2 Derivatives are included in other assets and other liabilities in the balance sheets.
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:
|  |  |  | Three months ended March 31
Mortgage revenue bonds |  |  |  |  | 2021 | 2020
(in thousands) |  |  |  |  |  |
Beginning balance |  |  |  |  | $ | 27,185 |  | $ | 28,597 |
Principal payments received |  |  |  |  | (11,758) |  | — |
Purchases |  |  |  |  | — |  | 129 |
Unrealized gain (loss) included in other comprehensive income |  |  |  |  | — |  | — |
Ending balance |  |  |  |  | $ | 15,427 |  | $ | 28,726 |
Schedule of assets measured at fair value on a nonrecurring basis | The carrying value of assets measured at fair value on a nonrecurring basis were as follows:
|  |  |  | Fair value measurements using
(in thousands) |  | Balance |  | Level 1 |  | Level 2 |  | Level 3
March 31, 2021 |  |  |  |  |  |  |  |
Loans |  | $ | 69 |  |  | $ | — |  |  | $ | — |  |  | $ | 69 |
Mortgage servicing rights |  | 61 |  |  | — |  |  | — |  |  | 61 |
December 31, 2020 |  |  |  |  |  |  |  |
Loans |  | 387 |  |  | — |  |  | — |  |  | 387 |
Mortgage servicing rights |  | 3,001 |  |  | — |  |  | — |  |  | 3,001 |
Schedule of significant unobservable inputs used in the fair value measurement | Key assumptions used in estimating the fair value of ASB’s MSRs used in the impairment analysis were as follows:
(dollars in thousands) |  | March 31, 2021 |  | December 31, 2020
Unpaid principal balance |  | $ | 1,505,963 |  |  | $ | 1,450,312 |
Weighted average note rate |  | 3.57 | % |  | 3.68 | %
Weighted average discount rate |  | 9.25 | % |  | 9.25 | %
Weighted average prepayment speed |  | 12.0 | % |  | 17.7 | %
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, 2021 |  |  |  |  |  |  |  |  |  |
Home equity lines of credit |  | $ | 69 |  |  | Fair value of collateral |  | Appraised value less selling cost |  | N/A (2) |  | N/A (2)
Mortgage servicing rights |  | 61 |  |  | Discounted cash flow |  | Prepayment speed |  | 17% - 24% |  | 17 | %
|  |  |  |  |  | Discount rate |  |  |  | 9.3 | %
December 31, 2020 |  |  |  |  |  |  |  |  |  |
Commercial loan |  | $ | 387 |  |  | Fair value of collateral |  | Appraised value less selling cost |  | N/A (2) |  | N/A (2)
Mortgage servicing rights |  | 3,001 |  |  | Discounted cash flow |  | Prepayment speed |  | 15% - 22% |  | 22 | %
|  |  |  |  |  | Discount rate |  |  |  | 9.3 | %
(1) Represents percent of outstanding principal balance. (2) N/A - Not applicable. There is one asset in each fair value measurement type.

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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