Bank segment (Tables)

9 Months Ended

Sep. 30, 2024


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	592,784	123,238	113,840	2,402	(2,647)	$	829,617
Expenses
Fuel oil	207,498		31,464	40,076	—	—	279,038
Purchased power	135,645		35,291	18,229	—	—	189,165
Other operation and maintenance	105,977		25,614	32,769	484	(2,647)	162,197
Wildfire tort-related claims (Note 2)	130,400		16,300	16,300	—	—	163,000
Depreciation	42,004		10,964	9,844	—	—	62,812
Taxes, other than income taxes	55,787		11,511	10,671	—	—	77,969

Total expenses	677,311		131,144	127,889	484	(2,647)	934,181
Operating income (loss)	(84,527)		(7,906)	(14,049)	1,918	—	(104,564)
Allowance for equity funds used during construction	2,628		256	416	—	—	3,300
Equity in earnings of subsidiaries	(18,558)		—	—	—	18,558	—
Retirement defined benefits credit (expense)—other than service costs	826		162	(29)	—	—	959
Interest expense and other charges, net	(14,870)		(2,760)	(4,324)	—	1,731	(20,223)
Allowance for borrowed funds used during construction	1,055		75	201	—	—	1,331
Interest Income	2,971		324	107	—	(1,731)	1,671
Income (loss) before income taxes	(110,475)		(9,849)	(17,678)	1,918	18,558	(117,526)
Income tax expense (benefit)	(28,160)		(2,807)	(4,966)	494	—	(35,439)
Net income (loss)	(82,315)		(7,042)	(12,712)	1,424	18,558	(82,087)
Preferred stock dividends of subsidiaries	—		133	95	—	—	228
Net income (loss) attributable to Hawaiian Electric	(82,315)		(7,175)	(12,807)	1,424	18,558	(82,315)
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income (loss) for common stock	$	(82,585)	(7,175)	(12,807)	1,424	18,558	$	(82,585)


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiary	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	570,323	116,192	108,472	—	—	$	794,987
Expenses
Fuel oil	196,223		30,956	40,259	—	—	267,438
Purchased power	132,536		30,265	14,994	—	—	177,795
Other operation and maintenance	83,528		21,351	37,629	—	—	142,508
Depreciation	41,276		10,635	9,254	—	—	61,165
Taxes, other than income taxes	53,511		10,857	10,355	—	—	74,723

Total expenses	507,074		104,064	112,491	—	—	723,629
Operating income (loss)	63,249		12,128	(4,019)	—	—	71,358
Allowance for equity funds used during construction	3,005		366	629	—	—	4,000
Equity in earnings of subsidiaries	3,005		—	—	—	(3,005)	—
Retirement defined benefits credit (expense)—other than service costs	992		163	(23)	—	—	1,132
Interest expense and other charges, net	(16,295)		(2,988)	(3,164)	—	—	(22,447)
Allowance for borrowed funds used during construction	1,047		117	208	—	—	1,372
Income (loss) before income taxes	55,003		9,786	(6,369)	—	(3,005)	55,415
Income tax expense (benefit)	11,272		2,234	(2,050)	—	—	11,456
Net income (loss)	43,731		7,552	(4,319)	—	(3,005)	43,959
Preferred stock dividends of subsidiaries	—		133	95	—	—	228
Net income (loss) attributable to Hawaiian Electric	43,731		7,419	(4,414)	—	(3,005)	43,731
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income (loss) for common stock	$	43,461	7,419	(4,414)	—	(3,005)	$	43,461


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	1,721,592	358,510	330,669	2,402	(2,647)	$	2,410,526
Expenses
Fuel oil	605,083		91,590	125,313	—	—	821,986
Purchased power	390,302		98,415	41,593	—	—	530,310
Other operation and maintenance	290,578		74,748	90,485	484	(2,647)	453,648
Wildfire tort-related claims (Note 2)	1,500,000		187,500	187,500	—	—	1,875,000
Depreciation	126,011		32,892	29,533	—	—	188,436
Taxes, other than income taxes	162,410		33,411	30,974	—	—	226,795

Total expenses	3,074,384		518,556	505,398	484	(2,647)	4,096,175
Operating income (loss)	(1,352,792)		(160,046)	(174,729)	1,918	—	(1,685,649)
Allowance for equity funds used during construction	8,027		893	1,356	—	—	10,276
Equity in earnings of subsidiaries	(258,633)		—	—	—	258,633	—
Retirement defined benefits credit (expense)—other than service costs	2,681		498	(76)	—	—	3,103
Interest expense and other charges, net	(44,879)		(8,648)	(13,114)	—	5,016	(61,625)
Allowance for borrowed funds used during construction	3,168		267	626	—	—	4,061
Interest Income	8,606		720	245	—	(5,016)	4,555
Income (loss) before income taxes	(1,633,822)		(166,316)	(185,692)	1,918	258,633	(1,725,279)
Income tax expense (benefit)	(361,874)		(43,636)	(49,001)	494	—	(454,017)
Net income (loss)	(1,271,948)		(122,680)	(136,691)	1,424	258,633	(1,271,262)
Preferred stock dividends of subsidiaries	—		400	286	—	—	686
Net income (loss) attributable to Hawaiian Electric	(1,271,948)		(123,080)	(136,977)	1,424	258,633	(1,271,948)
Preferred stock dividends of Hawaiian Electric	810		—	—	—	—	810
Net income (loss) for common stock	$	(1,272,758)	(123,080)	(136,977)	1,424	258,633	$	(1,272,758)


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiary	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	1,742,542	343,554	333,573	—	(130)	$	2,419,539
Expenses
Fuel oil	663,521		79,187	138,984	—	—	881,692
Purchased power	362,275		101,597	35,118	—	—	498,990
Other operation and maintenance	255,728		64,367	87,089	—	—	407,184
Depreciation	123,114		31,906	27,761	—	—	182,781
Taxes, other than income taxes	164,510		31,983	31,541	—	—	228,034

Total expenses	1,569,148		309,040	320,493	—	—	2,198,681
Operating income	173,394		34,514	13,080	—	(130)	220,858
Allowance for equity funds used during construction	8,604		1,004	1,465	—	—	11,073
Equity in earnings of subsidiaries	25,960		—	—	—	(25,960)	—
Retirement defined benefits credit (expense)—other than service costs	2,801		500	(74)	—	—	3,227
Interest expense and other charges, net	(45,594)		(8,794)	(9,307)	—	130	(63,565)
Allowance for borrowed funds used during construction	2,995		321	482	—	—	3,798

Income before income taxes	168,160		27,545	5,646	—	(25,960)	175,391
Income taxes	31,581		6,261	284	—	—	38,126
Net income	136,579		21,284	5,362	—	(25,960)	137,265
Preferred stock dividends of subsidiaries	—		400	286	—	—	686
Net income attributable to Hawaiian Electric	136,579		20,884	5,076	—	(25,960)	136,579
Preferred stock dividends of Hawaiian Electric	810		—	—	—	—	810
Net income for common stock	$	135,769	20,884	5,076	—	(25,960)	$	135,769

Statements of Income and Comprehensive Income Data


	Three months ended September 30				Nine months ended September 30
(in thousands)	2024		2023		2024		2023
Interest and dividend income
Interest and fees on loans	$	73,654	$	71,540	$	219,585	$	204,348
Interest and dividends on investment securities	14,001		14,096		42,183		42,508
Total interest and dividend income	87,655		85,636		261,768		246,856
Interest expense
Interest on deposit liabilities	19,018		14,446		54,465		30,944
Interest on other borrowings	6,403		8,598		21,036		25,171
Total interest expense	25,421		23,044		75,501		56,115
Net interest income	62,234		62,592		186,267		190,741
Provision for credit losses	248		8,835		(3,821)		10,053
Net interest income after provision for credit losses	61,986		53,757		190,088		180,688
Noninterest income
Fees from other financial services	5,188		4,703		15,195		14,391
Fee income on deposit liabilities	5,156		4,924		14,684		14,027
Fee income on other financial products	3,131		2,440		8,834		7,952
Bank-owned life insurance	2,993		2,303		8,832		5,683
Mortgage banking income	363		341		1,151		701
Gain on sale of real estate	—		—		—		495

Other income, net	658		627		1,767		2,106
Total noninterest income	17,489		15,338		50,463		45,355
Noninterest expense
Compensation and employee benefits	31,485		29,902		93,746		89,500
Occupancy	5,630		5,154		15,913		16,281
Data processing	4,974		5,133		14,780		15,240
Services	3,816		3,627		12,217		8,911
Equipment	2,436		3,125		7,562		8,728
Office supplies, printing and postage	1,014		1,022		3,038		3,296
Marketing	885		984		2,408		2,834

Goodwill impairment	—		—		82,190		—
Other expense	5,806		7,399		16,561		19,742
Total noninterest expense	56,046		56,346		248,415		164,532
Income (loss) before income taxes	23,429		12,749		(7,864)		61,511
Income tax (benefit)	4,651		1,384		(1,789)		11,380
Net income (loss)	18,778		11,365		(6,075)		50,131
Other comprehensive income (loss), net of taxes	40,204		(34,231)		32,069		(23,011)
Comprehensive income (loss)	$	58,982	$	(22,866)	$	25,994	$	27,120

Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*:


	Three months ended September 30				Nine months ended September 30
(in thousands)	2024		2023		2024		2023
Interest and dividend income	$	87,655	$	85,636	$	261,768	$	246,856
Noninterest income	17,489		15,338		50,463		45,355
Less: Gain on sale of real estate	—		—		—		495

*Revenues-Bank	105,144		100,974		312,231		291,716
Total interest expense	25,421		23,044		75,501		56,115
Provision for credit losses	248		8,835		(3,821)		10,053
Noninterest expense	56,046		56,346		248,415		164,532
Less: Gain on sale of real estate	—		—		—		495
Less: Retirement defined benefits credit—other than service costs	(257)		(190)		(818)		(564)
*Expenses-Bank	81,972		88,415		320,913		230,769
*Operating income (loss)-Bank	23,172		12,559		(8,682)		60,947
Add back: Retirement defined benefits credit—other than service costs	(257)		(190)		(818)		(564)

Income (loss) before income taxes	$	23,429	$	12,749	$	(7,864)	$	61,511

Schedule of Statements of Comprehensive Income Data

Statements of Income and Comprehensive Income Data


	Three months ended September 30				Nine months ended September 30
(in thousands)	2024		2023		2024		2023
Interest and dividend income
Interest and fees on loans	$	73,654	$	71,540	$	219,585	$	204,348
Interest and dividends on investment securities	14,001		14,096		42,183		42,508
Total interest and dividend income	87,655		85,636		261,768		246,856
Interest expense
Interest on deposit liabilities	19,018		14,446		54,465		30,944
Interest on other borrowings	6,403		8,598		21,036		25,171
Total interest expense	25,421		23,044		75,501		56,115
Net interest income	62,234		62,592		186,267		190,741
Provision for credit losses	248		8,835		(3,821)		10,053
Net interest income after provision for credit losses	61,986		53,757		190,088		180,688
Noninterest income
Fees from other financial services	5,188		4,703		15,195		14,391
Fee income on deposit liabilities	5,156		4,924		14,684		14,027
Fee income on other financial products	3,131		2,440		8,834		7,952
Bank-owned life insurance	2,993		2,303		8,832		5,683
Mortgage banking income	363		341		1,151		701
Gain on sale of real estate	—		—		—		495

Other income, net	658		627		1,767		2,106
Total noninterest income	17,489		15,338		50,463		45,355
Noninterest expense
Compensation and employee benefits	31,485		29,902		93,746		89,500
Occupancy	5,630		5,154		15,913		16,281
Data processing	4,974		5,133		14,780		15,240
Services	3,816		3,627		12,217		8,911
Equipment	2,436		3,125		7,562		8,728
Office supplies, printing and postage	1,014		1,022		3,038		3,296
Marketing	885		984		2,408		2,834

Goodwill impairment	—		—		82,190		—
Other expense	5,806		7,399		16,561		19,742
Total noninterest expense	56,046		56,346		248,415		164,532
Income (loss) before income taxes	23,429		12,749		(7,864)		61,511
Income tax (benefit)	4,651		1,384		(1,789)		11,380
Net income (loss)	18,778		11,365		(6,075)		50,131
Other comprehensive income (loss), net of taxes	40,204		(34,231)		32,069		(23,011)
Comprehensive income (loss)	$	58,982	$	(22,866)	$	25,994	$	27,120

Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*:


	Three months ended September 30				Nine months ended September 30
(in thousands)	2024		2023		2024		2023
Interest and dividend income	$	87,655	$	85,636	$	261,768	$	246,856
Noninterest income	17,489		15,338		50,463		45,355
Less: Gain on sale of real estate	—		—		—		495

*Revenues-Bank	105,144		100,974		312,231		291,716
Total interest expense	25,421		23,044		75,501		56,115
Provision for credit losses	248		8,835		(3,821)		10,053
Noninterest expense	56,046		56,346		248,415		164,532
Less: Gain on sale of real estate	—		—		—		495
Less: Retirement defined benefits credit—other than service costs	(257)		(190)		(818)		(564)
*Expenses-Bank	81,972		88,415		320,913		230,769
*Operating income (loss)-Bank	23,172		12,559		(8,682)		60,947
Add back: Retirement defined benefits credit—other than service costs	(257)		(190)		(818)		(564)

Income (loss) before income taxes	$	23,429	$	12,749	$	(7,864)	$	61,511

Schedule of Balance Sheets Data


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi- diaries	Consoli- dating adjustments	Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	42,860	5,645	3,514	—	—	$	52,019
Plant and equipment	5,503,512		1,494,982	1,414,657	—	—	8,413,151
Right-of-use assets - finance lease	362,741		36,074	50,757	—	—	449,572
Less accumulated depreciation	(2,028,302)		(685,469)	(609,419)	—	—	(3,323,190)
Construction in progress	276,525		27,878	42,270	—	—	346,673
Utility property, plant and equipment, net	4,157,336		879,110	901,779	—	—	5,938,225
Nonutility property, plant and equipment, less accumulated depreciation	5,292		115	1,532	—	—	6,939
Total property, plant and equipment, net	4,162,628		879,225	903,311	—	—	5,945,164
Investment in wholly owned subsidiaries, at equity	669,450		—	—	—	(669,450)	—
Current assets
Cash and cash equivalents	99,392		25,734	11,833	10,665	—	147,624
Restricted cash	2,000		—	—	—	—	2,000
Advances to affiliates	46,200		—	—	—	(46,200)	—
Customer accounts receivable, net	32,405		7,594	9,774	158,180	—	207,953
Accrued unbilled revenues, net	23,595		5,568	3,560	166,934	—	199,657
Other accounts receivable, net	193,771		61,265	54,397	—	(223,945)	85,488
Fuel oil stock, at average cost	79,736		10,657	18,650	—	—	109,043
Materials and supplies, at average cost	66,289		14,736	33,029	—	—	114,054
Prepayments and other	70,526		7,456	18,559	—	(1,718)	94,823
Regulatory assets	46,579		4,761	8,496	—	—	59,836
Total current assets	660,493		137,771	158,298	335,779	(271,863)	1,020,478
Other long-term assets
Operating lease right-of-use assets	31,134		22,422	7,451	—	—	61,007
Regulatory assets	207,572		16,091	30,748	—	—	254,411
Other	250,162		37,716	34,850	—	(40,584)	282,144
Total other long-term assets	488,868		76,229	73,049	—	(40,584)	597,562
Total assets	$	5,981,439	1,093,225	1,134,658	335,779	(981,897)	$	7,563,204

(continued)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Balance Sheet (continued)

September 30, 2024


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi- diaries	Consoli- dating adjustments	Hawaiian Electric Consolidated
Capitalization and liabilities
Capitalization
Common stock equity	$	1,110,259	237,105	280,629	151,716	(669,450)	$	1,110,259
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,387,029		244,437	256,537	—	—	1,888,003
Total capitalization	2,519,581		488,542	542,166	151,716	(669,450)	3,032,555
Current liabilities
Current portion of operating lease liabilities	5,183		7,302	2,926	—	—	15,411
Current portion of long-term debt	39,980		4,998	1,999	—	—	46,977

Short-term borrowings from affiliate	—		—	46,200	—	(46,200)	—
Accounts payable	141,147		24,484	36,796	—	—	202,427
Interest and preferred dividends payable	22,194		3,652	4,508	—	(537)	29,817
Taxes accrued, including revenue taxes	187,756		40,137	34,984	494	(1,718)	261,653
Regulatory liabilities	10,887		9,782	5,015	—	—	25,684
Wildfire tort-related claims (Note 2)	383,000		47,875	47,875	—	—	478,750
Other	91,572		28,782	33,180	183,569	(223,408)	113,695
Total current liabilities	881,719		167,012	213,483	184,063	(271,863)	1,174,414
Deferred credits and other liabilities
Operating lease liabilities	30,785		15,480	4,831	—	—	51,096
Finance lease liabilities	346,344		34,543	50,036	—	—	430,923
Deferred income taxes	—		3,024	22,534	—	(25,558)	—
Regulatory liabilities	839,392		208,022	118,001	—	—	1,165,415
Unamortized tax credits	56,219		10,887	11,100	—	—	78,206
Defined benefit pension and other postretirement benefit plans liability	75,907		—	—	—	(15,026)	60,881
Wildfire tort-related claims (Note 2)	1,149,000		143,625	143,625	—	—	1,436,250
Other	82,492		22,090	28,882	—	—	133,464
Total deferred credits and other liabilities	2,580,139		437,671	379,009	—	(40,584)	3,356,235
Total capitalization and liabilities	$	5,981,439	1,093,225	1,134,658	335,779	(981,897)	$	7,563,204


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diary	Consoli- dating adjustments	Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	42,859	5,645	3,594	—	—	$	52,098
Plant and equipment	5,398,281		1,459,639	1,374,890	—	—	8,232,810
Finance lease right-of-use assets	306,099		36,075	—	—	—	342,174
Less accumulated depreciation	(1,925,660)		(666,581)	(605,273)	—	—	(3,197,514)
Construction in progress	247,836		33,488	38,899	—	—	320,223
Utility property, plant and equipment, net	4,069,415		868,266	812,110	—	—	5,749,791
Nonutility property, plant and equipment, less accumulated depreciation	5,295		115	1,532	—	—	6,942
Total property, plant and equipment, net	4,074,710		868,381	813,642	—	—	5,756,733
Investment in wholly owned subsidiaries, at equity	722,211		—	—	—	(722,211)	—
Current assets
Cash and cash equivalents	89,755		10,658	5,587	77	—	106,077
Restricted cash	2,000		—	—	—	—	2,000
Advances to affiliates	70,500		—	—	—	(70,500)	—
Customer accounts receivable, net	172,747		38,216	33,346	—	—	244,309
Accrued unbilled revenues, net	136,367		25,102	24,175	—	—	185,644
Other accounts receivable, net	143,160		13,318	32,521	—	(77,480)	111,519
Fuel oil stock, at average cost	108,228		17,968	22,041	—	—	148,237
Materials and supplies, at average cost	64,334		14,397	35,702	—	—	114,433
Prepayments and other	40,767		7,724	11,638	—	(1,638)	58,491
Regulatory assets	58,920		5,771	3,762	—	—	68,453
Total current assets	886,778		133,154	168,772	77	(149,618)	1,039,163
Other long-term assets
Operating lease right-of-use assets	34,856		27,470	9,551	—	—	71,877
Regulatory assets	189,417		13,575	23,359	—	—	226,351
Other	134,033		36,439	33,129	—	(14,171)	189,430
Total other long-term assets	358,306		77,484	66,039	—	(14,171)	487,658
Total assets	$	6,042,005	1,079,019	1,048,453	77	(886,000)	$	7,283,554

(continued)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Balance Sheet (continued)

December 31, 2023


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diary	Consoli- dating adjustments	Hawaiian Electric Consolidated
Capitalization and liabilities
Capitalization
Common stock equity	$	2,409,110	359,790	362,344	77	(722,211)	$	2,409,110
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,426,516		249,339	258,422	—	—	1,934,277
Total capitalization	3,857,919		616,129	625,766	77	(722,211)	4,377,680
Current liabilities
Current portion of operating lease liabilities	6,788		7,025	2,804	—	—	16,617


Short-term borrowings-affiliate	—		—	70,500	—	(70,500)	—
Accounts payable	136,102		29,418	25,520	—	—	191,040
Interest and preferred dividends payable	17,085		3,098	3,074	—	(375)	22,882
Taxes accrued, including revenue taxes	211,840		43,932	37,808	—	(1,638)	291,942
Regulatory liabilities	20,013		8,508	8,038	—	—	36,559
Wildfire tort-related claims	75,000		—	—	—	—	75,000
Other	90,131		33,240	50,170	—	(77,105)	96,436
Total current liabilities	556,959		125,221	197,914	—	(149,618)	730,476
Deferred credits and other liabilities
Operating lease liabilities	34,262		20,792	7,044	—	—	62,098
Finance lease liabilities	295,935		35,043	—	—	—	330,978
Deferred income taxes	280,029		51,661	67,311	—	—	399,001
Regulatory liabilities	803,404		199,173	111,554	—	—	1,114,131
Unamortized tax credits	61,130		11,650	11,532	—	—	84,312
Defined benefit pension and other postretirement benefit plans liability	74,842		—	—	—	(14,171)	60,671
Other	77,525		19,350	27,332		—	124,207
Total deferred credits and other liabilities	1,627,127		337,669	224,773	—	(14,171)	2,175,398
Total capitalization and liabilities	$	6,042,005	1,079,019	1,048,453	77	(886,000)	$	7,283,554

Balance Sheets Data


(in thousands)	September 30, 2024				December 31, 2023
Assets
Cash and due from banks			$	155,869			$	184,383
Interest-bearing deposits			176,784				251,072
Cash and cash equivalents			332,653				435,455

Investment securities
Available-for-sale, at fair value			1,084,083				1,136,439
Held-to-maturity, at amortized cost (fair value of $1,086,205 and $1,103,668, at September 30, 2024 and December 31, 2023, respectively)			1,159,229				1,201,314
Stock in Federal Home Loan Bank, at cost			29,204				14,728
Loans held for investment			6,037,410				6,180,810
Allowance for credit losses			(64,796)				(74,372)
Net loans			5,972,614				6,106,438
Loans held for sale, at lower of cost or fair value			2,704				15,168
Other			687,359				681,460
Goodwill			—				82,190
Total assets			$	9,267,846			$	9,673,192
Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing			$	2,486,717			$	2,599,762
Deposit liabilities—interest-bearing			5,512,493				5,546,016
Other borrowings			520,000				750,000
Other			191,512				247,563
Total liabilities			8,710,722				9,143,341

Common stock			1				1
Additional paid-in capital			359,346				358,067
Retained earnings			457,980				464,055
Accumulated other comprehensive loss, net of tax benefits
Net unrealized losses on securities	$	(251,703)			$	(282,963)
Retirement benefit plans	(8,500)		(260,203)		(9,309)		(292,272)
Total shareholder’s equity			557,124				529,851
Total liabilities and shareholder’s equity			$	9,267,846			$	9,673,192

Other assets
Bank-owned life insurance			$	199,741			$	187,857
Premises and equipment, net			180,073				187,042
Accrued interest receivable			28,764				28,472
Mortgage-servicing rights			7,722				8,169
Low-income housing investments			100,499				112,234


Deferred tax asset			108,338				104,292

Other			62,222				53,394
Total other assets			$	687,359			$	681,460
Other liabilities
Accrued expenses			$	80,788			$	115,231

Cashier’s checks			35,625				40,479
Advance payments by borrowers			4,373				10,107
Other			70,726				81,746
Total other liabilities			$	191,512			$	247,563

Schedule of the Book Value and Aggregate Fair Value by Major Security Type

The major components of investment securities were as follows:


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value		Gross unrealized losses
									Less than 12 months					12 months or longer
(dollars in thousands)									Number of issues	Fair value		Amount		Number of issues	Fair value		Amount
September 30, 2024
Available-for-sale
U.S. Treasury and federal agency obligations	$	7,789	$	—	$	(192)	$	7,597	—	$	—	$	—	6	$	7,597	$	(192)
Mortgage-backed securities*	1,203,271		31		(174,675)		1,028,627		—	—		—		108	1,025,897		(174,675)
Corporate bonds	35,137		—		(1,213)		33,924		—	—		—		3	33,924		(1,213)
Mortgage revenue bonds	13,935		—		—		13,935		—	—		—		—	—		—
	$	1,260,132	$	31	$	(176,080)	$	1,084,083	—	$	—	$	—	117	$	1,067,418	$	(176,080)
Held-to-maturity
U.S. Treasury and federal agency obligations	$	59,935	$	—	$	(5,686)	$	54,249	—	$	—	$	—	3	$	54,249	$	(5,686)
Mortgage-backed securities*	1,099,294		6,355		(73,693)		1,031,956		—	—		—		65	648,634		(73,693)
	$	1,159,229	$	6,355	$	(79,379)	$	1,086,205	—	$	—	$	—	68	$	702,883	$	(79,379)
December 31, 2023
Available-for-sale
U.S. Treasury and federal agency obligations	$	12,437	$	—	$	(427)	$	12,010	—	$	—	$	—	9	$	12,010	$	(427)
Mortgage-backed securities*	1,279,852		—		(202,684)		1,077,168		3	1,649		(22)		116	1,075,519		(202,662)
Corporate bonds	35,239		—		(2,336)		32,903		—	—		—		3	32,903		(2,336)
Mortgage revenue bonds	14,358		—		—		14,358		—	—		—		—	—		—
	$	1,341,886	$	—	$	(205,447)	$	1,136,439	3	$	1,649	$	(22)	128	$	1,120,432	$	(205,425)
Held-to-maturity
U.S. Treasury and federal agency obligations	$	59,917	$	—	$	(7,135)	$	52,782	—	$	—	$	—	3	$	52,782	$	(7,135)
Mortgage-backed securities*	1,141,397		2,221		(92,732)		1,050,886		37	378,326		(7,610)		43	432,082		(85,122)
	$	1,201,314	$	2,221	$	(99,867)	$	1,103,668	37	$	378,326	$	(7,610)	46	$	484,864	$	(92,257)

* Issued or guaranteed by U.S. Government agencies or sponsored agencies

Schedule of Contractual Maturities of Available-for-Sale Securities

The contractual maturities of investment securities were as follows:


September 30, 2024	Amortized cost		Fair value
(in thousands)
Available-for-sale
Due in one year or less	$	370	$	364
Due after one year through five years	42,557		41,157
Due after five years through ten years	13,934		13,935
Due after ten years	—		—
	56,861		55,456
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	1,203,271		1,028,627
Total available-for-sale securities	$	1,260,132	$	1,084,083
Held-to-maturity
Due in one year or less	$	—	$	—
Due after one year through five years	39,858		36,634
Due after five years through ten years	20,077		17,615
Due after ten years	—		—
	59,935		54,249
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies	1,099,294		1,031,956
Total held-to-maturity securities	$	1,159,229	$	1,086,205

Schedule of Components of Loans Receivable

The components of loans were summarized as follows:


	September 30, 2024		December 31, 2023
(in thousands)
Real estate:
Residential 1-4 family	$	2,608,281	$	2,595,162
Commercial real estate	1,366,214		1,374,038
Home equity line of credit	959,607		1,017,207
Residential land	19,900		18,364
Commercial construction	208,867		172,405
Residential construction	16,998		17,843
Total real estate	5,179,867		5,195,019
Commercial	645,571		743,303
Consumer	239,410		272,256
Total loans	6,064,848		6,210,578
Less: Deferred fees and discounts	(27,438)		(29,768)
Allowance for credit losses	(64,796)		(74,372)
Total loans, net	$	5,972,614	$	6,106,438

Schedule of 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 September 30, 2024
Allowance for credit losses:
Beginning balance	$	6,219	$	18,656	$	9,552	$	759	$	3,369	$	38	$	6,317	$	21,903	$	66,813
Charge-offs	(8)		—		—		—		—		—		(120)		(2,999)		(3,127)
Recoveries	9		—		12		—		—		—		100		741		862
Provision	(211)		96		(443)		(147)		(278)		(1)		(292)		1,524		248
Ending balance	$	6,009	$	18,752	$	9,121	$	612	$	3,091	$	37	$	6,005	$	21,169	$	64,796
Three months ended September 30, 2023
Allowance for credit losses:
Beginning balance	$	4,708	$	20,278	$	7,139	$	653	$	2,549	$	26	$	11,358	$	22,357	$	69,068
Charge-offs	—		—		—		—		—		—		(125)		(2,667)		(2,792)
Recoveries	57		—		131		1		—		—		725		841		1,755
Provision	1,702		2,180		505		(33)		1,075		16		(1,175)		4,065		8,335
Ending balance	$	6,467	$	22,458	$	7,775	$	621	$	3,624	$	42	$	10,783	$	24,596	$	76,366
Nine months ended September 30, 2024
Allowance for credit losses:
Beginning balance	$	7,435	$	22,185	$	7,778	$	621	$	3,603	$	43	$	9,122	$	23,585	$	74,372
Charge-offs	(850)		—		—		—		—		—		(360)		(8,718)		(9,928)
Recoveries	202		—		259		—		—		—		385		2,427		3,273
Provision	(778)		(3,433)		1,084		(9)		(512)		(6)		(3,142)		3,875		(2,921)
Ending balance	$	6,009	$	18,752	$	9,121	$	612	$	3,091	$	37	$	6,005	$	21,169	$	64,796
Nine months ended September 30, 2023
Allowance for credit losses:
Beginning balance	$	6,270	$	21,898	$	6,125	$	717	$	1,195	$	46	$	12,426	$	23,539	$	72,216
Charge-offs	(990)		—		(360)		—		—		—		(509)		(7,558)		(9,417)
Recoveries	63		—		165		4		—		—		1,329		2,653		4,214
Provision	1,124		560		1,845		(100)		2,429		(4)		(2,463)		5,962		9,353
Ending balance	$	6,467	$	22,458	$	7,775	$	621	$	3,624	$	42	$	10,783	$	24,596	$	76,366

Schedule of 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 September 30, 2024
Allowance for loan commitments:
Beginning balance	$	700	$	3,100	$	400	$	4,200
Provision	—		—		—		—
Ending balance	$	700	$	3,100	$	400	$	4,200
Three months ended September 30, 2023
Allowance for loan commitments:
Beginning balance	$	600	$	3,800	$	200	$	4,600
Provision	—		500		—		500
Ending balance	$	600	$	4,300	$	200	$	5,100
Nine months ended September 30, 2024
Allowance for loan commitments:
Beginning balance	$	600	$	4,300	$	200	$	5,100
Provision	100		(1,200)		200		(900)
Ending balance	$	700	$	3,100	$	400	$	4,200
Nine months ended September 30, 2023
Allowance for loan commitments:
Beginning balance	$	400	$	2,600	$	1,400	$	4,400

Provision	200		1,700		(1,200)		700
Ending balance	$	600	$	4,300	$	200	$	5,100

Schedule of Credit Risk Profile by Internally Assigned Grade for Loans

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)	2024		2023		2022		2021		2020		Prior		Revolving		Converted to term loans		Total
September 30, 2024
Residential 1-4 family
Current	$	131,347	$	253,155	$	397,855	$	706,189	$	385,208	$	726,220	$	—	$	—	$	2,599,974
30-59 days past due	—		—		—		333		264		1,541		—		—		2,138
60-89 days past due	—		—		—		—		—		891		—		—		891
Greater than 89 days past due	—		—		727		543		—		4,008		—		—		5,278
	131,347		253,155		398,582		707,065		385,472		732,660		—		—		2,608,281
Home equity line of credit
Current	—		—		—		—		—		—		888,858		67,452		956,310
30-59 days past due	—		—		—		—		—		—		969		419		1,388
60-89 days past due	—		—		—		—		—		—		624		449		1,073
Greater than 89 days past due	—		—		—		—		—		—		732		104		836
	—		—		—		—		—		—		891,183		68,424		959,607
Residential land
Current	5,889		3,689		4,513		3,473		1,729		607		—		—		19,900
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		—		—		—		—
	5,889		3,689		4,513		3,473		1,729		607		—		—		19,900
Residential construction
Current	831		9,640		6,527		—		—		—		—		—		16,998
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		—		—		—		—
	831		9,640		6,527		—		—		—		—		—		16,998
Consumer
Current	31,632		63,848		120,783		5,061		648		280		9,635		1,790		233,677
30-59 days past due	503		566		1,387		101		4		—		67		96		2,724
60-89 days past due	111		402		990		61		8		—		21		40		1,633
Greater than 89 days past due	88		353		602		40		6		—		116		171		1,376
	32,334		65,169		123,762		5,263		666		280		9,839		2,097		239,410
Commercial real estate
Pass	35,630		104,725		376,087		188,549		256,108		368,171		15,482		—		1,344,752
Special Mention	—		—		1,208		1,455		—		1,106		—		—		3,769
Substandard	—		—		—		1,505		—		13,990		—		—		15,495
Doubtful	—		—		—		—		—		2,198		—		—		2,198
	35,630		104,725		377,295		191,509		256,108		385,465		15,482		—		1,366,214
Commercial construction
Pass	—		68,962		41,201		17,685		1,333		—		79,686		—		208,867
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
	—		68,962		41,201		17,685		1,333		—		79,686		—		208,867
Commercial
Pass	90,529		80,793		171,002		71,410		44,575		75,689		95,912		7,074		636,984
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	1,058		—		3,812		158		—		2,635		799		51		8,513
Doubtful	—		—		—		—		74		—		—		—		74
	91,587		80,793		174,814		71,568		44,649		78,324		96,711		7,125		645,571
Total loans	$	297,618	$	586,133	$	1,126,694	$	996,563	$	689,957	$	1,197,336	$	1,092,901	$	77,646	$	6,064,848


	Term Loans by Origination Year												Revolving Loans
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving		Converted to term loans		Total
December 31, 2023
Residential 1-4 family
Current	$	263,605	$	407,304	$	729,256	$	399,766	$	104,487	$	672,408	$	—	$	—	$	2,576,826
30-59 days past due	—		708		—		268		—		3,525		—		—		4,501
60-89 days past due	—		726		2,694		—		—		1,745		—		—		5,165
Greater than 89 days past due	—		2,519		871		1,129		489		3,662		—		—		8,670
	263,605		411,257		732,821		401,163		104,976		681,340		—		—		2,595,162


Home equity line of credit
Current	—		—		—		—		—		—		954,461		59,146		1,013,607
30-59 days past due	—		—		—		—		—		—		1,219		262		1,481
60-89 days past due	—		—		—		—		—		—		597		—		597
Greater than 89 days past due	—		—		—		—		—		—		1,111		411		1,522
	—		—		—		—		—		—		957,388		59,819		1,017,207


Residential land
Current	3,788		4,097		7,234		1,847		—		723		—		—		17,689
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		675		—		—		—		—		—		—		675
Greater than 89 days past due	—		—		—		—		—		—		—		—		—
	3,788		4,772		7,234		1,847		—		723		—		—		18,364


Residential construction
Current	5,369		10,984		1,490		—		—		—		—		—		17,843
30-59 days past due	—		—		—		—		—		—		—		—		—
60-89 days past due	—		—		—		—		—		—		—		—		—
Greater than 89 days past due	—		—		—		—		—		—		—		—		—
	5,369		10,984		1,490		—		—		—		—		—		17,843


Consumer
Current	87,686		153,239		9,852		1,654		451		200		10,663		2,779		266,524
30-59 days past due	805		1,314		176		29		24		—		56		163		2,567
60-89 days past due	385		886		114		41		21		—		60		69		1,576
Greater than 89 days past due	354		786		101		24		34		—		67		223		1,589
	89,230		156,225		10,243		1,748		530		200		10,846		3,234		272,256


Commercial real estate
Pass	104,368		384,144		180,986		267,458		65,625		307,367		15,482		—		1,325,430
Special Mention	—		1,975		11,159		—		14,110		3,008		—		—		30,252
Substandard	—		—		1,538		—		11,048		5,770		—		—		18,356
Doubtful	—		—		—		—		—		—		—		—		—
	104,368		386,119		193,683		267,458		90,783		316,145		15,482		—		1,374,038


Commercial construction
Pass	45,863		33,240		26,133		1,333		—		—		65,836		—		172,405
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
	45,863		33,240		26,133		1,333		—		—		65,836		—		172,405


Commercial
Pass	124,667		199,796		106,669		73,976		37,580		80,012		87,206		6,250		716,156
Special Mention	1,860		6,989		951		—		250		—		7,352		—		17,402
Substandard	—		2,962		1,848		98		60		3,369		1,275		133		9,745
Doubtful	—		—		—		—		—		—		—		—		—
	126,527		209,747		109,468		74,074		37,890		83,381		95,833		6,383		743,303


Total loans	$	638,750	$	1,212,344	$	1,081,072	$	747,623	$	234,179	$	1,081,789	$	1,145,385	$	69,436	$	6,210,578

Gross charge-offs by portfolio segment and vintage were as follows:


(in thousands)	2024		2023		2022		2021		2020		Prior		Total
Nine months ended September 30, 2024
Residential 1-4 family	$	—	$	—	$	361	$	277	$	—	$	212	$	850
Commercial real estate	—		—		—		—		—		—		—
Home equity line of credit	—		—		—		—		—		—		—
Residential land	—		—		—		—		—		—		—
Commercial construction	—		—		—		—		—		—		—
Residential construction	—		—		—		—		—		—		—
Commercial	—		—		12		63		—		285		360
Consumer	733		2,853		4,329		481		102		220		8,718
Total	$	733	$	2,853	$	4,702	$	821	$	102	$	717	$	9,928

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		90 days or more past due		Total past due		Current		Total financing receivables		Amortized cost> 90 days and accruing
September 30, 2024
Real estate:
Residential 1-4 family	$	2,138	$	891	$	5,278	$	8,307	$	2,599,974	$	2,608,281	$	—
Commercial real estate	—		—		10,698		10,698		1,355,516		1,366,214		—
Home equity line of credit	1,388		1,073		836		3,297		956,310		959,607		—
Residential land	—		—		—		—		19,900		19,900		—
Commercial construction	—		—		—		—		208,867		208,867		—
Residential construction	—		—		—		—		16,998		16,998		—
Commercial	309		9		74		392		645,179		645,571		—
Consumer	2,724		1,633		1,376		5,733		233,677		239,410		—
Total loans	$	6,559	$	3,606	$	18,262	$	28,427	$	6,036,421	$	6,064,848	$	—
December 31, 2023
Real estate:
Residential 1-4 family	$	4,501	$	5,165	$	8,670	$	18,336	$	2,576,826	$	2,595,162	$	425
Commercial real estate	—		—		11,048		11,048		1,362,990		1,374,038		—
Home equity line of credit	1,481		597		1,522		3,600		1,013,607		1,017,207		—
Residential land	—		675		—		675		17,689		18,364		—
Commercial construction	—		—		—		—		172,405		172,405		—
Residential construction	—		—		—		—		17,843		17,843		—
Commercial	163		135		244		542		742,761		743,303		—
Consumer	2,567		1,576		1,589		5,732		266,524		272,256		—
Total loans	$	8,712	$	8,148	$	23,073	$	39,933	$	6,170,645	$	6,210,578	$	425

Credit risk profile based on payment activity for loans modified during the nine months ended September 30, 2024 were as follows:


(in thousands)	Current		30-59 days past due		60-89 days past due		90 days or more past due		Total
Real estate loans
Residential 1-4 family	$	4,867	$	264	$	—	$	2,101	$	7,232
Commercial real estate	1,208		—		—		—		1,208
Home equity line of credit	447		—		153		—		600
Residential land	675		—		—		—		675
Commercial construction	—		—		—		—		—
Residential construction	—		—		—		—		—
Commercial	—		—		—		—		—
Consumer	—		—		—		—		—
Total	$	7,197	$	264	$	153	$	2,101	$	9,715

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 were as follows:


(in thousands)	September 30, 2024						December 31, 2023
	With a related ACL		Without a related ACL		Total		With a related ACL		Without a related ACL		Total
Real estate:
Residential 1-4 family	$	4,335	$	4,107	$	8,442	$	7,755	$	2,190	$	9,945
Commercial real estate	10,698		—		10,698		11,048		—		11,048
Home equity line of credit	3,346		553		3,899		2,626		1,135		3,761
Residential land	—		—		—		780		—		780
Commercial construction	—		—		—		—		—		—
Residential construction	—		—		—		—		—		—
Commercial	175		158		333		133		301		434
Consumer	2,273		—		2,273		2,458		—		2,458
Total	$	20,827	$	4,818	$	25,645	$	24,800	$	3,626	$	28,426

Schedule of Loan Modification

Loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 were as follows:


(in thousands)	Term extension		Interest Rate Reduction		Payment delay		Combination payment delay & term extension		Total		% of total class of loans
Three months ended September 30, 2024
Real estate loans
Residential 1-4 family	$	153	$	—	$	1,850	$	—	$	2,003	0.08	%
Commercial real estate	—		—		—		—		—		—
Home equity line of credit	—		153		—		—		153		0.02
Residential land	—		—		—		—		—		—
Commercial construction	—		—		—		—		—		—
Residential construction	—		—		—		—		—		—
Commercial	—		—		—		—		—		—
Consumer	—		—		—		—		—		—
Total	$	153	$	153	$	1,850	$	—	$	2,156	0.04	%
Nine months ended September 30, 2024
Real estate loans
Residential 1-4 family	$	468	$	—	$	6,764	$	—	$	7,232	0.28	%
Commercial real estate	—		—		—		1,208		1,208		0.09	%
Home equity line of credit	—		153		447		—		600		0.06	%
Residential land	—		—		675		—		675		3.39	%
Commercial construction	—		—		—		—		—		—
Residential construction	—		—		—		—		—		—
Commercial	—		—		—		—		—		—
Consumer	—		—		—		—		—		—
Total	$	468	$	153	$	7,886	$	1,208	$	9,715	0.16	%

Financial effect of loan modifications during the three and nine months ended September 30, 2024 for borrowers experiencing financial difficulty were as follows:


	Weighted average
	Term extension (in months)	Interest Rate Reduction (in percent)		Payment delay (in months)
Three months ended September 30, 2024
Real estate loans
Residential 1-4 family	329	—		6
Commercial real estate	—	—		—
Home equity line of credit	—	3.00	%	—
Residential land	—	—		—
Commercial construction	—	—		—
Residential construction	—	—		—
Commercial	—	—		—
Consumer	—	—		—
Nine months ended September 30, 2024
Real estate loans
Residential 1-4 family	208	—		9
Commercial real estate	9	—		9
Home equity line of credit	—	3.00	%	11
Residential land	—	—		9
Commercial construction	—	—		—
Residential construction	—	—		—
Commercial	—	—		—
Consumer	—	—		—

Schedule of Collateral-Dependent Loans

Loans considered collateral-dependent were as follows:


	Amortized cost
(in thousands)	September 30, 2024		December 31, 2023		Collateral type
Real estate:
Residential 1-4 family	$	4,184	$	2,272	Residential real estate property
Commercial real estate	10,698		11,048		Commercial real estate property
Home equity line of credit	662		1,135		Residential real estate property

Total real estate	15,544		14,455
Commercial	232		301		Business assets
Total	$	15,776	$	14,756

Schedule of Amortized Intangible Assets

Changes in the carrying value of MSRs were as follows:


(in thousands)	Gross carrying amount		Accumulated amortization		Valuation allowance		Net carrying amount
September 30, 2024	$	18,284	$	(10,562)	$	—	$	7,722
December 31, 2023	18,241		(10,072)		—		8,169

Changes related to MSRs were as follows:


	Three months ended September 30				Nine months ended September 30
(in thousands)	2024		2023		2024		2023
Mortgage servicing rights
Beginning balance	$	7,906	$	8,495	$	8,169	$	9,047
Amount capitalized	171		184		548		319
Amortization	(355)		(303)		(995)		(990)
Other-than-temporary impairment	—		—		—		—
Carrying amount before valuation allowance	7,722		8,376		7,722		8,376
Valuation allowance for mortgage servicing rights
Beginning balance	—		—		—		—
Provision	—		—		—		—
Other-than-temporary impairment	—		—		—		—
Ending balance	—		—		—		—
Net carrying value of mortgage servicing rights	$	7,722	$	8,376	$	7,722	$	8,376

Schedule of Key Assumptions Used in Estimating fair Value

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, 2024			December 31, 2023
Unpaid principal balance	$	1,392,423		$	1,402,736
Weighted average note rate	3.61		%	3.47		%
Weighted average discount rate	10.00		%	10.00		%
Weighted average prepayment speed	7.47		%	5.71		%

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets

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)	September 30, 2024		December 31, 2023
Prepayment rate:
25 basis points adverse rate change	$	(232)	$	(90)
50 basis points adverse rate change	(494)		(204)
Discount rate:
25 basis points adverse rate change	(171)		(203)
50 basis points adverse rate change	(340)		(402)

Schedule of Notional and Fair Value of Derivatives

The notional amount and fair value of ASB’s derivative financial instruments were as follows:


	September 30, 2024				December 31, 2023
(in thousands)	Notional amount		Fair value		Notional amount		Fair value
Interest rate lock commitments	$	4,672	$	68	$	6,246	$	86
Forward commitments	4,250		10		5,500		(18)

Schedule of Derivative Financial Instruments

ASB’s derivative financial instruments, their fair values and balance sheet location were as follows:


Derivative Financial Instruments Not Designated as Hedging Instruments 1	September 30, 2024				December 31, 2023
(in thousands)	Asset derivatives		Liability derivatives		Asset derivatives		Liability derivatives
Interest rate lock commitments	$	68	$	—	$	86	$	—
Forward commitments	10		—		—		18
	$	78	$	—	$	86	$	18

1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the balance sheets.

Schedule of Derivative Financial Instruments and Net Gain or Loss

The following table presents ASB’s derivative financial instruments and the amount and location of the net gains or losses recognized in 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 September 30				Nine months ended September 30
(in thousands)		2024		2023		2024		2023
Interest rate lock commitments	Mortgage banking income	$	(21)	$	(34)	$	(18)	$	45
Forward commitments	Mortgage banking income	5		(36)		28		(3)
		$	(16)	$	(70)	$	10	$	42