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Bank segment (HEI only) (Tables)
 12 Months Ended
Dec. 31, 2016
Bank Segment Disclosure [Abstract]  
Schedule of statements of income data
Statements of Income Data
Years ended December 31
2016

 
2015

 
2014

(in thousands)
 

 
 

 
 

Interest and dividend income
 

 
 

 
 

Interest and fees on loans
$
199,774

 
$
184,782

 
$
179,341

Interest and dividends on investment securities
19,184

 
15,120

 
11,945

Total interest and dividend income
218,958

 
199,902

 
191,286

Interest expense
 

 
 

 
 

Interest on deposit liabilities
7,167

 
5,348

 
5,077

Interest on other borrowings
5,588

 
5,978

 
5,731

Total interest expense
12,755

 
11,326

 
10,808

Net interest income
206,203

 
188,576

 
180,478

Provision for loan losses
16,763

 
6,275

 
6,126

Net interest income after provision for loan losses
189,440

 
182,301

 
174,352

Noninterest income
 

 
 

 
 

Fees from other financial services
22,384

 
22,211

 
21,747

Fee income on deposit liabilities
21,759

 
22,368

 
19,249

Fee income on other financial products
8,707

 
8,094

 
8,131

Bank-owned life insurance
4,637

 
4,078

 
3,949

Mortgage banking income
6,625

 
6,330

 
2,913

Gains on sale of investment securities
598

 
—

 
2,847

Other income, net
2,256

 
4,750

 
2,375

Total noninterest income
66,966

 
67,831

 
61,211

Noninterest expense
 

 
 

 
 

Compensation and employee benefits
90,117

 
90,518

 
79,885

Occupancy
16,321

 
16,365

 
17,197

Data processing
13,030

 
12,103

 
11,690

Services
11,054

 
10,204

 
10,269

Equipment
6,938

 
6,577

 
6,564

Office supplies, printing and postage
6,075

 
5,749

 
6,089

Marketing
3,489

 
3,463

 
3,999

FDIC insurance
3,543

 
3,274

 
3,261

Other expense
18,487

 
18,067

 
17,314

Total noninterest expense
169,054

 
166,320

 
156,268

Income before income taxes
87,352

 
83,812

 
79,295

Income taxes
30,073

 
29,082

 
27,994

Net income
$
57,279

 
$
54,730

 
$
51,301
Schedule of statements of comprehensive income data
Statements of Comprehensive Income
Years ended December 31
2016

 
2015

 
2014

(in thousands)
 

 
 

 
 

Net income
$
57,279

 
$
54,730

 
$
51,301

Other comprehensive income (loss), net of taxes:
 

 
 

 
 

Net unrealized gains (losses) on available-for sale investment securities:
 

 
 

 
 

Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $3,763, $1,541 and $(3,856) for 2016, 2015 and 2014, respectively
(5,699
)
 
(2,334
)
 
5,840

Less: reclassification adjustment for net realized gains included in net income, net of taxes of $238, nil and $1,132 for 2016, 2015 and 2014, respectively
(360
)
 
—

 
(1,715
)
Retirement benefit plans:
 

 
 

 
 

Net gains (losses) arising during the period, net of (taxes) benefits of nil, $(59) and $6,164 for 2016, 2015 and 2014, respectively
—

 
90

 
(9,336
)
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $566, $1,011 and $561 for 2016, 2015 and 2014, respectively
857

 
1,531

 
850

Other comprehensive income (loss), net of taxes
(5,202
)
 
(713
)
 
(4,361
)
Comprehensive income
$
52,077

 
$
54,017

 
$
46,940
Schedule of balance sheets data
Balance Sheets Data
December 31
 
2016

 
2015

(in thousands)
 
 

 
 

Assets
 
 

 
 

Cash and due from banks
 
$
137,083

 
$
127,201

Interest-bearing deposits
 
52,128

 
93,680

Restricted cash
 
1,764

 
—

Available-for-sale investment securities, at fair value
 
1,105,182

 
820,648

Stock in Federal Home Loan Bank, at cost
 
11,218

 
10,678

Loans receivable held for investment
 
4,738,693

 
4,615,819

Allowance for loan losses
 
(55,533
)
 
(50,038
)
Net loans
 
4,683,160

 
4,565,781

Loans held for sale, at lower of cost or fair value
 
18,817

 
4,631

Other
 
329,815

 
309,946

Goodwill
 
82,190

 
82,190

Total assets
 
$
6,421,357

 
$
6,014,755

Liabilities and shareholder’s equity
 
 

 
 

Deposit liabilities–noninterest-bearing
 
$
1,639,051

 
$
1,520,374

Deposit liabilities–interest-bearing
 
3,909,878

 
3,504,880

Other borrowings
 
192,618

 
328,582

Other
 
101,635

 
101,029

Total liabilities
 
5,843,182

 
5,454,865

Commitments and contingencies
 


 


Common stock
 
1

 
1

Additional paid in capital
 
342,704

 
340,496

Retained earnings
 
257,943

 
236,664

Accumulated other comprehensive loss, net of tax benefits
 
 
 
 
     Net unrealized losses on securities
$
(7,931
)
 
$
(1,872
)
 
     Retirement benefit plans
(14,542
)
(22,473
)
(15,399
)
(17,271
)
Total shareholder’s equity
 
578,175

 
559,890

Total liabilities and shareholder’s equity
 
$
6,421,357

 
$
6,014,755




December 31
 
2016

 
2015

(in thousands)
 
 

 
 

Other assets
 
 

 
 

Bank-owned life insurance
 
$
143,197

 
$
138,139

Premises and equipment, net
 
90,570

 
88,077

Prepaid expenses
 
3,348

 
3,550

Accrued interest receivable
 
16,824

 
15,192

Mortgage-servicing rights
 
9,373

 
8,884

Low-income housing equity investments
 
47,081

 
37,793

Real estate acquired in settlement of loans, net
 
1,189

 
1,030

Other
 
18,233

 
17,281

 
 
$
329,815

 
$
309,946

Other liabilities
 
 

 
 

Accrued expenses
 
$
36,754

 
$
30,705

Federal and state income taxes payable
 
4,728

 
13,448

Cashier’s checks
 
24,156

 
21,768

Advance payments by borrowers
 
10,335

 
10,311

Other
 
25,662

 
24,797

 
 
$
101,635

 
$
101,029
Schedule of the book value and aggregate fair value by major security type
The major components of investment securities were as follows:
 
 
 
 
 
 
 
 
 
Gross unrealized losses
 
 
 
Gross
 
Gross
 
Estimated
 
Less than 12 months
 
12 months or longer
(dollars in thousands)
Amortized
cost
 
unrealized
gains
 
unrealized
losses
 
fair
value
 
Number of issues
 
Fair value
 
Amount
 
Number of issues
 
Fair value
 
Amount
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

U.S. Treasury and federal agency obligations
$
193,515

 
$
920

 
$
(2,154
)
 
$
192,281

 
18
 
$
123,475

 
$
(2,010
)
 
1
 
$
3,485

 
$
(144
)
Mortgage-related securities- FNMA, FHLMC and GNMA
909,408

 
1,742

 
(13,676
)
 
897,474

 
88
 
709,655

 
(12,143
)
 
13
 
47,485

 
(1,533
)
Mortgage revenue bond
15,427

 
—

 
—

 
15,427

 
—
 
—

 
—

 
—
 
—

 
—

 
$
1,118,350

 
$
2,662

 
$
(15,830
)
 
$
1,105,182

 
106
 
$
833,130

 
$
(14,153
)
 
14
 
$
50,970

 
$
(1,677
)
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:
 
Amortized

 
Fair

December 31, 2016
Cost

 
value

(in thousands)
 
 
 
Due in one year or less
$
9,979

 
$
10,001

Due after one year through five years
77,179

 
77,126

Due after five years through ten years
81,411

 
81,083

Due after ten years
40,373

 
39,498

 
208,942

 
207,708

Mortgage-related securities-FNMA,FHLMC and GNMA
909,408

 
897,474

Total available-for-sale securities
$
1,118,350

 
$
1,105,182
Schedule of proceeds, gains and losses from sales of available for sale investment securities
The proceeds, gross gains and losses from sales of available-for-sale investment securities were as follows:
Years ended December 31
2016

 
2015

 
2014

(in millions)
 
 
 
 
 
Proceeds
$
16.4

 
$
—

 
$
79.6

Gross gains
0.6

 
—

 
2.8

Gross losses
—

 
—

 
—
Schedule of interest income from available for sale investment securities
Interest income from taxable and non-taxable investment securities were as follows:
Years ended December 31
2016

 
2015

 
2014

(in thousands)
 
 
 
 
 
Taxable
$
19,166

 
$
15,120

 
$
11,666

Non-taxable
18

 
—

 
279

 
$
19,184

 
$
15,120

 
$
11,945
Schedule of loans receivable
The components of loans receivable were summarized as follows:
December 31
2016

 
2015

(in thousands)
 

 
 

Real estate:
 

 
 

Residential 1-4 family
$
2,048,051

 
$
2,069,665

Commercial real estate
800,395

 
690,561

Home equity line of credit
863,163

 
846,294

Residential land
18,889

 
18,229

Commercial construction
126,768

 
100,796

Residential construction
16,080

 
14,089

Total real estate
3,873,346

 
3,739,634

Commercial
692,051

 
758,659

Consumer
178,222

 
123,775

Total loans
4,743,619

 
4,622,068

Less: Deferred fees and discounts
(4,926
)
 
(6,249
)
          Allowance for loan losses
(55,533
)
 
(50,038
)
Total loans, net
$
4,683,160

 
$
4,565,781
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
 
Consumer
 
Unallo- cated
 
Total
December 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
(639
)
 
—

 
(112
)
 
(138
)
 
—

 
—

 
(5,943
)
 
(7,413
)
 
—

 
(14,245
)
Recoveries
421

 
—

 
59

 
461

 
—

 
—

 
1,093

 
943

 
—

 
2,977

Provision
(1,095
)
 
4,662

 
(2,168
)
 
(256
)
 
1,988

 
(1
)
 
4,260

 
9,373

 
—

 
16,763

Ending balance
$
2,873

 
$
16,004

 
$
5,039

 
$
1,738

 
$
6,449

 
$
12

 
$
16,618

 
$
6,800

 
$
—

 
$
55,533

Ending balance: individually evaluated for impairment
$
1,352

 
$
80

 
$
215

 
$
789

 
$
—

 
$
—

 
$
1,641

 
$
6

 


 
$
4,083

Ending balance: collectively evaluated for impairment
$
1,521

 
$
15,924

 
$
4,824

 
$
949

 
$
6,449

 
$
12

 
$
14,977

 
$
6,794

 
$
—

 
$
51,450

Financing Receivables:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
$
2,048,051

 
$
800,395

 
$
863,163

 
$
18,889

 
$
126,768

 
$
16,080

 
$
692,051

 
$
178,222

 
$
—

 
$
4,743,619

Ending balance: individually evaluated for impairment
$
19,854

 
$
1,569

 
$
6,158

 
$
3,629

 
$
—

 
$
—

 
$
20,539

 
$
10

 
$
—

 
$
51,759

Ending balance: collectively evaluated for impairment
$
2,028,197

 
$
798,826

 
$
857,005

 
$
15,260

 
$
126,768

 
$
16,080

 
$
671,512

 
$
178,212

 
$
—

 
$
4,691,860

December 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
(356
)
 
—

 
(205
)
 
—

 
—

 
—

 
(1,074
)
 
(4,791
)
 
—

 
(6,426
)
Recoveries
226

 
—

 
80

 
507

 
—

 
—

 
2,773

 
985

 
—

 
4,571

Provision
(346
)
 
2,388

 
403

 
(711
)
 
(1,010
)
 
(15
)
 
1,492

 
4,074

 


 
6,275

Ending balance
$
4,186

 
$
11,342

 
$
7,260

 
$
1,671

 
$
4,461

 
$
13

 
$
17,208

 
$
3,897

 
$
—

 
$
50,038

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 changes in allowance for loan losses
Changes in the allowance for loan losses were as follows:
(dollars in thousands)
2016

 
2015

 
2014

Allowance for loan losses, January 1
$
50,038

 
$
45,618

 
$
40,116

Provision for loan losses
16,763

 
6,275

 
6,126

Charge-offs, net of recoveries
 

 
 

 
 

Real estate loans
(52
)
 
(252
)
 
(1,137
)
Other loans
11,320

 
2,107

 
1,761

Net charge-offs
11,268

 
1,855

 
624

Allowance for loan losses, December 31
$
55,533

 
$
50,038

 
$
45,618

Ratio of net charge-offs to average total loans
0.24
%
 
0.04
%
 
0.01
%
Schedule of credit risk profile by internally assigned grade for loans
The credit risk profile by internally assigned grade for loans was as follows:
December 31
2016
 
2015
(in thousands)
Commercial
real estate
 
Commercial
construction
 
Commercial
 
Total
 
Commercial
real estate
 
Commercial
construction
 
Commercial
 
Total
Grade:
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 
Pass
$
701,657

 
$
102,955

 
$
614,139

 
1,418,751

 
$
642,410

 
$
86,991

 
$
703,208

 
$
1,432,609

Special mention
65,541

 
—

 
25,229

 
90,770

 
7,710

 
13,805

 
7,029

 
28,544

Substandard
33,197

 
23,813

 
52,683

 
109,693

 
40,441

 
—

 
47,975

 
88,416

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
447

 
447

Loss
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
800,395

 
$
126,768

 
$
692,051

 
1,619,214

 
$
690,561

 
$
100,796

 
$
758,659

 
$
1,550,016
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
December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
$
5,467

 
$
2,338

 
$
3,505

 
$
11,310

 
$
2,036,741

 
$
2,048,051

 
$
—

Commercial real estate
2,416

 
—

 
—

 
2,416

 
797,979

 
800,395

 
—

Home equity line of credit
1,263

 
381

 
1,342

 
2,986

 
860,177

 
863,163

 
—

Residential land
—

 
—

 
255

 
255

 
18,634

 
18,889

 
—

Commercial construction
—

 
—

 
—

 
—

 
126,768

 
126,768

 
—

Residential construction
—

 
—

 
—

 
—

 
16,080

 
16,080

 
—

Commercial
413

 
510

 
1,303

 
2,226

 
689,825

 
692,051

 
—

Consumer
1,945

 
1,001

 
963

 
3,909

 
174,313

 
178,222

 
—

Total loans
$
11,504

 
$
4,230

 
$
7,368

 
$
23,102

 
$
4,720,517

 
$
4,743,619

 
$
—

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:
December 31
2016
 
2015
(in thousands)
 
 
 
Real estate:
 

 
 

Residential 1-4 family
$
11,154

 
$
20,554

Commercial real estate
223

 
1,188

Home equity line of credit
3,080

 
2,254

Residential land
878

 
970

Commercial construction
—

 
—

Residential construction
—

 
—

Commercial
6,708

 
20,174

Consumer
1,282

 
895

Total nonaccrual loans
$
23,325

 
$
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
$
14,450

 
$
13,962

Commercial real estate
1,346

 
—

Home equity line of credit
4,934

 
2,467

Residential land
2,751

 
4,713

Commercial construction
—

 
—

Residential construction
—

 
—

Commercial
14,146

 
1,104

Consumer
10

 
—

Total troubled debt restructured loans not included above
$
37,637

 
$
22,246
Schedule of the carrying amount and the total unpaid principal balance of impaired loans
The total carrying amount and the total unpaid principal balance of impaired loans were as follows:
December 31
2016
 
2015
(in thousands)
Recorded
investment
 
Unpaid
principal
balance
 
Related
allow-
ance
 
Average
recorded
investment
 
Interest
income
recognized*
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
allow-
ance
 
Average
recorded
investment
 
Interest
income
recognized*
With no related allowance recorded
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
$
9,571

 
$
10,400

 
$
—

 
$
10,136

 
$
324

 
$
10,596

 
$
11,805

 
$
—

 
$
11,215

 
$
332

Commercial real estate
223

 
228

 
—

 
1,124

 
—

 
1,188

 
1,436

 
—

 
370

 
74

Home equity line of credit
1,500

 
1,900

 
—

 
1,105

 
23

 
707

 
948

 
—

 
484

 
4

Residential land
1,218

 
1,803

 
—

 
1,518

 
66

 
1,644

 
2,412

 
—

 
2,397

 
137

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial
6,299

 
8,869

 
—

 
8,694

 
370

 
5,671

 
6,333

 
—

 
5,185

 
157

Consumer
—

 
—

 
—

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
18,811

 
23,200

 
—

 
22,579

 
783

 
19,806

 
22,934

 
—

 
19,651

 
704

With an allowance recorded
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
10,283

 
10,486

 
1,352

 
11,589

 
457

 
11,861

 
11,914

 
1,453

 
11,578

 
562

Commercial real estate
1,346

 
1,346

 
80

 
1,962

 
15

 
—

 
—

 
—

 
1,699

 
—

Home equity line of credit
4,658

 
4,712

 
215

 
3,765

 
137

 
2,518

 
2,579

 
442

 
1,597

 
49

Residential land
2,411

 
2,411

 
789

 
2,964

 
206

 
4,039

 
4,117

 
891

 
4,337

 
318

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial
14,240

 
14,240

 
1,641

 
16,106

 
456

 
15,448

 
16,073

 
3,527

 
12,507

 
211

Consumer
10

 
10

 
6

 
12

 
—

 
13

 
13

 
7

 
14

 
—

 
32,948

 
33,205

 
4,083

 
36,398

 
1,271

 
33,879

 
34,696

 
6,320

 
31,732

 
1,140

Total
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real estate:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential 1-4 family
19,854

 
20,886

 
1,352

 
21,725

 
781

 
22,457

 
23,719

 
1,453

 
22,793

 
894

Commercial real estate
1,569

 
1,574

 
80

 
3,086

 
15

 
1,188

 
1,436

 
—

 
2,069

 
74

Home equity line of credit
6,158

 
6,612

 
215

 
4,870

 
160

 
3,225

 
3,527

 
442

 
2,081

 
53

Residential land
3,629

 
4,214

 
789

 
4,482

 
272

 
5,683

 
6,529

 
891

 
6,734

 
455

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial
20,539

 
23,109

 
1,641

 
24,800

 
826

 
21,119

 
22,406

 
3,527

 
17,692

 
368

Consumer
10

 
10

 
6

 
14

 
—

 
13

 
13

 
7

 
14

 
—

 
$
51,759

 
$
56,405

 
$
4,083

 
$
58,977

 
$
2,054

 
$
53,685

 
$
57,630

 
$
6,320

 
$
51,383

 
$
1,844


* Since loan was classified as impaired.
Schedule of loan modifications
Loan modifications that occurred during 2016 and 2015 and the impact on the allowance for loan losses were as follows:
Years ended December 31
2016
 
2015
 
Number
 
Outstanding recorded investment
 
Net increase in ALLL
 
Number
 
Outstanding recorded investment
 
Net increase in ALLL
(dollars in thousands)
of
contracts
 
Pre-modification
 
Post-modification
 
 
of
contracts
 
Pre-modification
 
Post-modification
 
Troubled debt restructurings
 
 

 
 

 
 
 
 

 
 

 
 

 
 
Real estate:
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 
Residential 1-4 family
14

 
$
3,131

 
$
3,245

 
$
337

 
19

 
$
3,594

 
$
3,668

 
$
87

Commercial real estate
—

 
—

 
—

 
—

 
1

 
1,500

 
1,500

 
—

Home equity line of credit
36

 
3,337

 
3,337

 
554

 
39

 
2,441

 
2,441

 
370

Residential land
2

 
203

 
204

 
—

 
1

 
218

 
218

 
—

Commercial construction
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial
15

 
20,266

 
20,266

 
865

 
8

 
2,267

 
2,267

 
486

Consumer
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
67

 
$
26,937

 
$
27,052

 
$
1,756

 
68

 
$
10,020

 
$
10,094

 
$
943
Schedule of loans modified in TDRS that experienced a payment default of 90 days or more, and for which payment default occurred within one year of the modification
Loans modified in TDRs that experienced a payment default of 90 days or more in 2016 and 2015, and for which the payment default occurred within one year of the modification, were as follows:
Years ended December 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

 
$
239

 
—

 
$
—

Commercial real estate
—

 
—

 
—

 
—

Home equity line of credit
—

 
—

 
1

 
6

Residential land
—

 
—

 
—

 
—

Commercial construction
—

 
—

 
—

 
—

Residential construction
—

 
—

 
—

 
—

Commercial
1

 
24

 
1

 
1,056

Consumer
—

 
—

 
—

 
—

 
2

 
$
263

 
2

 
$
1,062
Schedule of amortized intangible assets
Changes in the carrying value of mortgage servicing rights were as follows:
(in thousands)
Gross
carrying amount
 
Accumulated amortization
 
Valuation allowance
 
Net
carrying amount
December 31, 2016
$
17,271

 
$
(7,898
)
 
$
—

 
$
9,373

December 31, 2015
$
14,531

1 
$
(5,647
)
1 
$
—

 
$
8,884

1 Reflects sale of mortgage servicing rights and impact of loans paid in full.

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

 
2015

 
2014

Mortgage servicing rights
 
 
 
 
 
Balance, January 1
$
8,884

 
$
11,749

 
$
11,938

Amount capitalized
2,740

 
3,123

 
1,637

Amortization
(2,251
)
 
(2,682
)
 
(1,731
)
Sale of mortgage servicing rights
—

 
(3,302
)
 
—

Other-than-temporary impairment
—

 
(4
)
 
(95
)
Carrying amount before valuation allowance, December 31
9,373

 
8,884

 
11,749

Valuation allowance for mortgage servicing rights
 
 
 
 
 
Balance, January 1
—

 
209

 
251

Provision (recovery)
—

 
(205
)
 
53

Other-than-temporary impairment
—

 
(4
)
 
(95
)
Balance, December 31
—

 
—

 
209

Net carrying value of mortgage servicing rights
$
9,373

 
$
8,884

 
$
11,540
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:
December 31
2016
 
2015
(dollars in thousands)
 
 
 
Unpaid principal balance
$
1,188,380

 
$
1,097,314

Weighted average note rate
3.96
%
 
4.05
%
Weighted average discount rate
9.4
%
 
9.6
%
Weighted average prepayment speed
8.5
%
 
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)
(dollars in thousands)
Fair value
 
Valuation technique
 
Significant unobservable input
 
Range
 
Weighted
Average
December 31, 2016
 
 
 
 
 
 
 
 
 
Residential loans
$
2,468

 
Sales price
 
Sales price
 
95-100%
 
97%
Residential loans
287

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 
42-65%
 
61%
Home equity lines of credit
12

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 
 
 
N/A (2)
Total loans
$
2,767

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate acquired in settlement of loans
$
1,189

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

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 

 
N/A (2)
Home equity lines of credit
128

 
Fair value of property or collateral
 
Appraised value less 7% selling cost
 

 
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 of MSR to hypothetical adverse changes
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:
December 31
2016
 
2015
(in thousands)
 
 
 
Prepayment rate:
 
 
 
25 basis points adverse rate change
$
(567
)
 
$
(561
)
50 basis points adverse rate change
(1,154
)
 
(1,104
)
Discount rate:
 
 
 
25 basis points adverse rate change
(128
)
 
(111
)
50 basis points adverse rate change
(254
)
 
(220
)
Schedule of deposit liabilities
The summarized components of deposit liabilities were as follows:
December 31
2016
 
2015
(dollars in thousands)
Weighted-average stated rate

 
Amount

 
Weighted-average stated rate

 
Amount 

Savings
0.07
%
 
$
2,208,594

 
0.07
%
 
$
2,030,644

Checking
 
 
 
 
 

 
 

Interest-bearing
0.02

 
890,633

 
0.02

 
831,143

Noninterest-bearing
—

 
817,867

 
—

 
746,875

Commercial checking
—

 
821,184

 
—

 
773,499

Money market
0.12

 
153,126

 
0.13

 
167,641

Term certificates
1.00

 
657,525

 
0.93

 
475,452

 
0.15
%
 
$
5,548,929

 
0.12
%
 
$
5,025,254
Schedule of maturities of term certificates
The approximate scheduled maturities of term certificates outstanding at December 31, 2016 were as follows:
(in thousands)
 
2017
$
322,661

2018
70,611

2019
105,478

2020
81,818

2021
73,686

Thereafter
3,271

 
$
657,525
Schedule of interest expense on deposit liabilities by type
Interest expense on deposit liabilities by type of deposit was as follows:
Years ended December 31
2016

 
2015

 
2014

(in thousands)
 
 
 
 
 
Term certificates
$
5,390

 
$
3,747

 
$
3,603

Savings
1,402

 
1,257

 
1,134

Money market
202

 
205

 
214

Interest-bearing checking
173

 
139

 
126

 
$
7,167

 
$
5,348

 
$
5,077
Schedule of securities sold under agreements to repurchase
Securities sold under agreements to repurchase were summarized as follows:
December 31
2016
 
2015
Maturity
Repurchase liability

 
Weighted-average
interest rate

 
Collateralized by
 mortgage-related
securities and federal
agency obligations at fair value plus
 accrued interest

 
Repurchase liability

 
Weighted-average
interest rate

 
Collateralized by
mortgage-related
securities and federal
agency obligations at fair value plus
accrued interest

(dollars in thousands)
 

 
 

 
 

 
 
 
 
 
 
Overnight
$
79,083

 
0.15
%
 
$
100,305

 
$
122,684

 
0.15
%
 
$
144,146

1 to 29 days
—

 
—

 
—

 
—

 
—

 
—

30 to 90 days
13,535

 
0.70

 
15,239

 
18,535

 
0.29

 
20,364

Over 90 days
—

 
—

 
—

 
87,363

1 
2.96

 
96,553

 
$
92,618

 
0.23
%
 
$
115,544

 
$
228,582

 
1.24
%
 
$
261,063

1  
$50.3 million callable by the counterparties quarterly at par until maturity in 2016.
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
 
 

 
 

 
 

December 31, 2016
 
$
93

 
$
—

 
$
93

December 31, 2015
 
229

 
—

 
229

 
 
 
Gross amount not offset in the Balance Sheet
(in millions)
 
Net amount of 
liabilities presented
in the Balance Sheet
 
Financial
instruments
 
Cash
collateral
pledged
December 31, 2016
 
 

 
 

 
 

Financial institution
 
$
—

 
$
—

 
$
—

Government entities
 
14

 
15

 
—

Commercial account holders
 
79

 
101

 
—

Total
 
$
93

 
$
116

 
$
—

December 31, 2015
 
 

 
 

 
 

Financial institution
 
$
50

 
$
56

 
$
—

Government entities
 
56

 
61

 
—

Commercial account holders
 
123

 
144

 
—

Total
 
$
229

 
$
261

 
$
—
Schedule of securities sold under agreements to repurchase, which provided for repurchase of identical securities
Information concerning securities sold under agreements to repurchase, which provided for the repurchase of identical securities, was as follows:
(dollars in millions)
2016

 
2015

 
2014

Amount outstanding as of December 31
$
93

 
$
229

 
$
191

Average amount outstanding during the year
$
170

 
$
219

 
$
155

Maximum amount outstanding as of any month-end
$
229

 
$
277

 
$
195

Weighted-average interest rate as of December 31
0.23
%
 
1.24
%
 
1.45
%
Weighted-average interest rate during the year
1.43
%
 
1.29
%
 
1.67
%
Weighted-average remaining days to maturity as of December 31
6

 
117

 
343
Schedule of advances from Federal Home Loan Bank
FHLB advances are fixed rate for a specific term and consist of the following:
December 31, 2016
Weighted-average
stated rate

 
Amount

 
(dollars in thousands)
 

 
 

 
Due in
 

 
 

 
2017
4.28
%
 
$
50,000

1 
2018
1.95

 
50,000

 
2019
—

 
—

 
2020
—

 
—

 
2021
—

 
—

 
Thereafter
—

 
—

 
 
3.12
%
 
$
100,000

 
1  
Callable quarterly at par until maturity in 2017.
Schedule of notional amounts and fair value of derivatives
The notional amount and fair value of ASB’s derivative financial instruments were as follows:
December 31
2016
 
2015
(in thousands)
Notional amount
 
Fair value
 
Notional amount
 
Fair value
Interest rate lock commitments
$
25,883

 
$
421

 
$
22,241

 
$
384

Forward commitments
30,813

 
(177
)
 
23,644

 
(29
)
Schedule of derivative financial instruments, fair values, and balance sheet location
ASB’s derivative financial instruments, their fair values, and balance sheet location were as follows:
Derivative Financial Instruments Not Designated
 
 
 
 
 
 
 
as Hedging Instruments 1
 
 
 
 
 
 
 
December 31
2016
 
2015
(in thousands)
Asset derivatives
 
Liability derivatives
 
Asset derivatives
 
Liability derivatives
Interest rate lock commitments
$
445

 
$
24

 
$
384

 
$
—

Forward commitments
8

 
185

 
1

 
30

 
$
453

 
$
209

 
$
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 amount and location of net gains or losses
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
Location of net gains
 
 
 
 
 
 
as Hedging Instruments
(losses) recognized in
 
Years ended December 31
(in thousands)
the Statements of Income
 
2016
 
2015
 
2014
Interest rate lock commitments
Mortgage banking income
 
$
37

 
$
(6
)
 
$
(74
)
Forward commitments
Mortgage banking income
 
(148
)
 
77

 
(245
)
 

 
$
(111
)
 
$
71

 
$
(319
)
Schedule of off balance sheet arrangements
The following is a summary of outstanding off-balance sheet arrangements:
December 31
2016

 
2015

(in thousands)
 
 
 
Unfunded commitments to extend credit:
 

 
 
Home equity line of credit
$
1,146,339

 
$
1,096,532

Commercial and commercial real estate
577,410

 
631,780

Consumer
64,762

 
60,198

Residential 1-4 family
38,271

 
24,863

Commercial and financial standby letters of credit
16,017

 
18,709

Total
$
1,842,799

 
$
1,832,082