XML 46 R32.htm IDEA: XBRL DOCUMENT v3.21.2
Fair value measurements (Tables)
 9 Months Ended
Sep. 30, 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 amountQuoted prices in
active markets
for identical assets
 (Level 1)		Significant
 other observable
 inputs
 (Level 2)		Significant
unobservable
inputs
 (Level 3)		Total
September 30, 2021     
Financial assets     
HEI consolidated
Available-for-sale investment securities
$2,580,830 $— $2,565,403 $15,427 $2,580,830 
Held-to-maturity investment securities
491,871 — 484,654 — 484,654 
Loans, net5,100,178 — 54,537 5,167,221 5,221,758 
Mortgage servicing rights10,272 — — 13,712 13,712 
Derivative assets53,789 121 494 — 615 
Financial liabilities    
HEI consolidated
Deposit liabilities444,897 — 445,401 — 445,401 
Short-term borrowings—other than bank92,246 — 92,246 — 92,246 
Other bank borrowings129,305 — 129,304 — 129,304 
Long-term debt, net—other than bank2,244,795 — 2,588,972 — 2,588,972 
  Derivative liabilities27,250 12 3,456 — 3,468 
Hawaiian Electric consolidated
Short-term borrowings— — — — — 
Long-term debt, net 1,676,223 — 1,987,933 — 1,987,933 
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, net5,260,917 — 28,354 5,410,976 5,439,330 
Mortgage servicing rights10,020 — — 10,705 10,705 
Derivative assets120,980 — 4,536 — 4,536 
Financial liabilities    
HEI consolidated
Deposit liabilities548,830 — 552,800 — 552,800 
Short-term borrowings—other than bank129,379 — 129,379 — 129,379 
Other bank borrowings89,670 — 89,669 — 89,669 
Long-term debt, net—other than bank2,119,129 — 2,487,790 — 2,487,790 
Derivative liabilities137,500 500 4,530 — 5,030 
Hawaiian Electric consolidated
Short-term borrowings49,979 — 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:
September 30, 2021December 31, 2020
 Fair value measurements usingFair value measurements using
(in thousands)Level 1Level 2Level 3Level 1Level 2Level 3
Available-for-sale investment securities (bank segment)      
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies
$— $2,441,683 $— $— $1,849,559 $— 
U.S. Treasury and federal agency obligations— 92,075 — — 62,322 — 
Corporate bonds— 31,645 — — 31,351 — 
Mortgage revenue bonds— — 15,427 — — 27,185 
 $— $2,565,403 $15,427 $— $1,943,232 $27,185 
Derivative assets     
Interest rate lock commitments (bank segment)1
$— $308 $— $— $4,536 $— 
Forward commitments (bank segment)1
121 — — — — — 
Interest rate swap (Other segment)2
— 186 — — — — 
 $121 $494 $— $— $4,536 $— 
Derivative liabilities
Forward commitments (bank segment)1
$12 $— $— $500 $— $— 
Interest rate swap (Other segment)2
— 3,456 — — 4,530 — 
$12 $3,456 $— $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 September 30Nine months ended September 30
Mortgage revenue bonds2021202020212020
(in thousands)
Beginning balance$15,427 $28,827 $27,185 $28,597 
Principal payments received— (1,642)(11,758)(1,642)
Purchases— — — 230 
Unrealized gain (loss) included in other comprehensive income— — — — 
Ending balance$15,427 $27,185 $15,427 $27,185 
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) BalanceLevel 1Level 2Level 3
September 30, 2021
Loans$125 $— $— $125 
December 31, 2020
Loans387 — — 387 
Mortgage servicing rights3,001 — — 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)September 30, 2021December 31, 2020
Unpaid principal balance$1,521,966 $1,450,312 
Weighted average note rate3.42 %3.68 %
Weighted average discount rate9.25 %9.25 %
Weighted average prepayment speed11.7 %17.7 %
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis:
Significant unobservable
 input value (1)
($ in thousands)Fair value Valuation techniqueSignificant unobservable inputRangeWeighted
Average
September 30, 2021
Residential$125 Fair value of property or collateralAppraised value less selling costN/A (2)N/A (2)
December 31, 2020
Commercial loan$387 Fair value of collateralAppraised value less selling costN/A (2)N/A (2)
Mortgage servicing rights3,001 Discounted cash flowPrepayment speed
15% - 22%
22 %
Discount rate9.3 %
(1) Represents percent of outstanding principal balance.
(2) N/A - Not applicable. There is one asset in each fair value measurement type.