XML 32 R20.htm IDEA: XBRL DOCUMENT
v3.22.2

Bank segment | 6 Months Ended
--- | ---
Jun. 30, 2022
Bank Subsidiary [Abstract] |
Bank segment | Bank segment Selected financial information American Savings Bank, F.S.B. 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 |
American Savings Bank, F.S.B. 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 |
Bank-owned life insurance is life insurance purchased by ASB on the lives of certain key employees, with ASB as the beneficiary. The insurance is used to fund employee benefits through tax-free income from increases in the cash value of the policies and insurance proceeds paid to ASB upon an insured’s death. Other borrowings consisted of FHLB advances of $80.0 million and nil at June 30, 2022 and December 31, 2021, respectively, and securities sold under agreements to repurchase of $161.6 million and $88.3 million at June 30, 2022 and December 31, 2021, respectively. Investment securities. 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 ASB does not believe that the investment securities that were in an unrealized loss position at June 30, 2022 and December 31, 2021, represent a credit loss. Total gross unrealized losses were primarily attributable to change in market conditions. On a quarterly basis the investment securities are evaluated for changes in financial condition of the issuer. Based upon ASB’s evaluation, all securities held within the investment portfolio continue to be investment grade by one or more agencies. The contractual cash flows of the U.S. Treasury, federal agency obligations and agency mortgage-backed securities are backed by the full faith and credit guaranty of the United States government or an agency of the government. ASB does not intend to sell the securities before the recovery of its amortized cost basis and there have been no adverse changes in the timing of the contractual cash flows for the securities. ASB’s investment securities portfolio did not require an allowance for credit losses at June 30, 2022 and December 31, 2021. U.S. Treasury, federal agency obligations, corporate bonds, and mortgage revenue bonds have contractual terms to maturity. Mortgage-backed securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities will differ from contractual maturities because borrowers have the right to prepay the underlying mortgages. 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 |
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 |
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 |
ASB's policy is to require private mortgage insurance on all real estate loans when the loan-to-value ratio of the property exceeds 80% of the lower of the appraised value or purchase price at origination. For non-owner occupied residential property purchases, the loan-to-value ratio may not exceed 75% of the lower of the appraised value or purchase price at origination. 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 |
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 |
Credit quality. ASB performs an internal loan review and grading on an ongoing basis. The review provides management with periodic information as to the quality of the loan portfolio and effectiveness of its lending policies and procedures. The objectives of the loan review and grading procedures are to identify, in a timely manner, existing or emerging credit trends so that appropriate steps can be initiated to manage risk and avoid or minimize future losses. Loans subject to grading include commercial, commercial real estate and commercial construction loans. Each commercial and commercial real estate loan is assigned an Asset Quality Rating (AQR) reflecting the likelihood of repayment or orderly liquidation of that loan transaction pursuant to regulatory credit classifications: Pass, Special Mention, Substandard, Doubtful, and Loss. The AQR is a function of the probability of default model rating, the loss given default, and possible non-model factors which impact the ultimate collectability of the loan such as character of the business owner/guarantor, interim period performance, litigation, tax liens and major changes in business and economic conditions. Pass exposures generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral. Special Mention loans have potential weaknesses that, if left uncorrected, could jeopardize the liquidation of the debt. Substandard loans have well-defined weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that ASB may sustain some loss. An asset classified Doubtful has the weaknesses of those classified Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. An asset classified Loss is considered uncollectible and has such little value that its continuance as a bankable asset is not warranted. 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 |
Revolving loans converted to term loans during the six months ended June 30, 2022 in the commercial, home equity line of credit and consumer portfolios were $1.0 million, $10.0 million and $1.7 million, respectively. Revolving loans converted to term loans during the six months ended June 30, 2021 in the commercial, home equity line of credit and consumer portfolios were $0.6 million, $9.8 million and $1.5 million, respectively. 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 |  |  | $ | — |
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 |
ASB did not recognize interest on nonaccrual loans for the six months ended June 30, 2022 and 2021. Troubled debt restructurings. A loan modification is deemed to be a TDR when the borrower is determined to be experiencing financial difficulties and ASB grants a concession it would not otherwise consider. The allowance for credit losses on TDR loans that do not share risk characteristics are individually evaluated based on the present value of expected future cash flows discounted at the loan’s effective original contractual rate or based on the fair value of collateral less cost to sell. The financial impact of the estimated loss is an increase to the allowance associated with the modified loan. When available information confirms that specific loans or portions thereof are uncollectible (confirmed losses), these amounts are charged off against the allowance for credit losses. Loans modified as a TDR. 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. There were no loans modified in TDRs that experienced a payment default of 90 days or more during the second quarter and first six months of 2022 and 2021. If a loan modified in a TDR subsequently defaults, ASB evaluates the loan for further impairment. Based on its evaluation, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan. Commitments to lend additional funds to borrowers whose loan terms have been modified in a TDR totaled nil at June 30, 2022 and December 31, 2021. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides that a financial institution may elect to suspend the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and any related impairment for accounting purposes. In response to the COVID-19 pandemic, the Board of Governors of the FRB, the FDIC, the National Credit Union Administration, the OCC, and the Consumer Financial Protection Bureau, in consultation with the state financial regulators (collectively, the agencies) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to accounting for loan modifications, past due reporting and nonaccrual status and charge-offs. Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with the FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment. Financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral. Lastly, during short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified. Collateral-dependent loans. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. 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 |  |  |
ASB had $3.2 million and $3.4 million of mortgage loans collateralized by residential real estate property that were in the process of foreclosure at June 30, 2022 and December 31, 2021, respectively. Mortgage servicing rights (MSRs). In its mortgage banking business, ASB sells residential mortgage loans to government-sponsored entities and other parties, who may issue securities backed by pools of such loans. ASB retains no beneficial interests in these loans other than the servicing rights of certain loans sold. ASB received proceeds from the sale of residential mortgages of $38.7 million and $95.6 million for the three months ended June 30, 2022 and 2021, respectively, and recognized gains on such sales of $0.3 million and $1.9 million for the three months ended June 30, 2022 and 2021, respectively. ASB received proceeds from the sale of residential mortgages of $114.3 million and $266.5 million for the six months ended June 30, 2022 and 2021, respectively, and recognized gains on such sales of $1.4 million and $6.2 million for the six months ended June 30, 2022 and 2021, respectively. There were no repurchased mortgage loans for the six months ended June 30, 2022 and 2021. Mortgage servicing fees, a component of other income, net, were $0.9 million and $1.0 million for the three months ended June 30, 2022 and 2021, respectively, and $1.8 million and $1.9 million for the six months ended June 30, 2022 and 2021, respectively. 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 |
ASB capitalizes MSRs acquired upon the sale of mortgage loans with servicing rights retained. On a monthly basis, ASB compares the net carrying value of the MSRs to its fair value to determine if there are any changes to the valuation allowance and/or other-than-temporary impairment for the MSRs. ASB uses a present value cash flow model to estimate the fair value of MSRs. Impairment is recognized through a valuation allowance for each stratum when the carrying amount exceeds fair value, with any associated provision recorded as a component of loan servicing fees included in “Revenues - bank” in the condensed consolidated statements of income. A direct write-down is recorded when the recoverability of the valuation allowance is deemed to be unrecoverable. 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 | %
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) |
The effect of a variation in certain assumptions on fair value is calculated without changing any other assumptions. This analysis typically cannot be extrapolated because the relationship of a change in one key assumption to the changes in the fair value of MSRs typically is not linear. Other borrowings. As of June 30, 2022 and December 31, 2021, ASB had $80 million and nil of FHLB advances outstanding, respectively, and no federal funds purchased with the Federal Reserve Bank. ASB was in compliance with all Advances, Pledge and Security Agreement requirements as of June 30, 2022. Securities sold under agreements to repurchase are accounted for as financing transactions and the obligations to repurchase these securities are recorded as liabilities in the condensed consolidated balance sheets. ASB pledges investment securities as collateral for securities sold under agreements to repurchase. All such agreements are subject to master netting arrangements, which provide for a conditional right of set-off in case of default by either party; however, ASB presents securities sold under agreements to repurchase on a gross basis in the balance sheet. 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 |  |  | — |
The securities underlying the agreements to repurchase are book-entry securities and were delivered by appropriate entry into the counterparties’ accounts or into segregated tri-party custodial accounts at the FHLB. The securities underlying the agreements to repurchase continue to be reflected in ASB’s asset accounts. Derivative financial instruments. ASB enters into interest rate lock commitments (IRLCs) with borrowers, and forward commitments to sell loans or to-be-announced mortgage-backed securities to investors to hedge against the inherent interest rate and pricing risks associated with selling loans. ASB enters into IRLCs for residential mortgage loans, which commit ASB to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose ASB to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income. ASB enters into forward commitments to hedge the interest rate risk for rate locked mortgage applications in process and closed mortgage loans held for sale. These commitments are primarily forward sales of to-be-announced mortgage backed securities. Generally, when mortgage loans are closed, the forward commitment is liquidated and replaced with a mandatory delivery forward sale of the mortgage to a secondary market investor. In some cases, a best-efforts forward sale agreement is utilized as the forward commitment. These commitments are free-standing derivatives which are carried at fair value with changes recorded in mortgage banking income. Changes in the fair value of IRLCs and forward commitments subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. 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) |
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. 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) |
Low-Income Housing Tax Credit (LIHTC). ASB’s unfunded commitments to fund its LIHTC investment partnerships were $62.8 million at June 30, 2022 and December 31, 2021. These unfunded commitments were unconditional and legally binding and are recorded in other liabilities with a corresponding increase in other assets. As of June 30, 2022, ASB did not have any impairment losses resulting from forfeiture or ineligibility of tax credits or other circumstances related to its LIHTC investment partnerships.

X
- Definition Bank Subsidiary [Abstract] + References No definition available. + Details
Name: | he_BankSubsidiaryAbstract
Namespace Prefix: | he_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition This element encapsulates disclosures pertaining to banking subsidiary. + References No definition available. + Details
Name: | he_BankSubsidiaryTextBlock
Namespace Prefix: | he_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration