Exact Name of Registrant | Commission | I.R.S. Employer | |||
as Specified in Its Charter | File Number | Identification No. | |||
1-8503 | 99-0208097 | ||||
1-4955 | 99-0040500 |
Registrant | Title of each class | Trading Symbol | Name of each exchange on which registered | |||
Hawaiian Electric Industries, Inc. | Common Stock, Without Par Value | |||||
New York Stock Exchange |
Registrant | Title of each class | |
Hawaiian Electric Industries, Inc. | None | |
Hawaiian Electric Company, Inc. | Cumulative Preferred Stock | |
Hawaiian Electric Industries, Inc. | Yes | ☒ | No | ☐ | Hawaiian Electric Company, Inc. | Yes | ☐ | No | ☒ |
Hawaiian Electric Industries, Inc. | Yes | ☐ | No | ☒ | Hawaiian Electric Company, Inc. | Yes | ☐ | No | ☒ |
Hawaiian Electric Industries, Inc. | Yes | ☒ | No | ☐ | Hawaiian Electric Company, Inc. | Yes | ☒ | No | ☐ |
Hawaiian Electric Industries, Inc. | Yes | ☒ | No | ☐ | Hawaiian Electric Company, Inc. | Yes | ☒ | No | ☐ |
Hawaiian Electric Industries, Inc.: | Hawaiian Electric Company, Inc.: | ||||||
Large accelerated filer | ☒ | Smaller reporting company | ☐ | Large accelerated filer | ☐ | Smaller reporting company | ☐ |
Accelerated filer | ☐ | Emerging growth company | ☐ | Accelerated filer | ☐ | Emerging growth company | ☐ |
Non-accelerated filer | ☐ | Non-accelerated filer | ☒ |
Hawaiian Electric Industries, Inc. | ☐ | No | ☐ | Hawaiian Electric Company, Inc. | ☐ | No | ☐ |
Hawaiian Electric Industries, Inc. | Yes | ☐ | No | ☒ | ||||||
Hawaiian Electric Company, Inc. | Yes | ☐ | No | ☒ | ||||||
Aggregate market value of the voting and non- voting common equity held by non-affiliates of the registrants as of | Number of shares of common stock outstanding of the registrants as of | |||||
June 30, 2019 | June 30, 2019 | February 13, 2020 | ||||
Hawaiian Electric Industries, Inc. (Without Par Value) | $4,745,752,027 | 108,972,492 | 108,973,328 | |||
Hawaiian Electric Company, Inc. ($6-2/3 Par Value) | None | 16,751,488 | 17,048,783 | |||
This combined Form 10-K represents separate filings by Hawaiian Electric Industries, Inc. and Hawaiian Electric Company, Inc. Information contained herein relating to any individual registrant is filed by each registrant on its own behalf. Hawaiian Electric makes no representations as to any information not relating to it or its subsidiaries. |
Page | ||
Cautionary Note Regarding Forward-Looking Statements | ||
Information About Our Executive Officers | ||
Item 16. | Form 10-K Summary | |
Terms | Definitions | |
ABO | Accumulated benefit obligation | |
ACL | Allowance for credit losses as determined under the new credit loss standard (ASU No. 2016-13), which requires the measurement of lifetime expected credit losses for financial assets held at the reporting date (based on historical experience, current conditions and reasonable and supportable forecasts) | |
ADIT | Accumulated deferred income tax balances | |
AES Hawaii | AES Hawaii, Inc. | |
AFS | Available-for-sale | |
AFUDC | Allowance for funds used during construction | |
ALL | Allowance for loan losses, as determined under the existing credit loss standard, requires recording the allowance based on an incurred loss model | |
AOCI | Accumulated other comprehensive income (loss) | |
AOS | Adequacy of supply | |
APBO | Accumulated postretirement benefit obligation | |
ARO | Asset retirement obligations | |
ASB | American Savings Bank, F.S.B., a wholly-owned subsidiary of ASB Hawaii Inc. | |
ASB Hawaii | ASB Hawaii, Inc. (formerly American Savings Holdings, Inc.), a wholly-owned subsidiary of Hawaiian Electric Industries, Inc. and the parent company of American Savings Bank, F.S.B. | |
ASC | Accounting Standards Codification | |
ASU | Accounting Standards Update | |
Btu | British thermal unit | |
CAA | Clean Air Act | |
CERCLA | Comprehensive Environmental Response, Compensation and Liability Act | |
Chevron | Chevron Products Company, which assigned their fuel oil supply contracts with the Utilities to Island Energy Services, | |
CIS | Customer Information System | |
Company | When used in Hawaiian Electric Industries, Inc. sections and in the Notes to Consolidated Financial Statements, “Company” refers to Hawaiian Electric Industries, Inc. and its direct and indirect subsidiaries, including, without limitation, Hawaiian Electric Company, Inc. and its subsidiaries (listed under Hawaiian Electric); ASB Hawaii, Inc. and its subsidiary, American Savings Bank, F.S.B.; When used in Hawaiian Electric Company, Inc. sections, “Company” refers to Hawaiian Electric Company, Inc. and its direct subsidiaries. | |
Consolidated Financial Statements | HEI’s | |
Consumer Advocate | Division of Consumer Advocacy, Department of Commerce and Consumer Affairs of the State of Hawaii | |
D&O | Decision and order from the PUC | |
DBF | State of Hawaii Department of Budget and Finance | |
DG | Distributed generation | |
DER | Distributed energy resources | |
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 | |
DOH | State of Hawaii Department of Health | |
DRIP | HEI Dividend Reinvestment and Stock Purchase Plan | |
ECAC | Energy cost adjustment clause | |
ECRC | Energy cost recovery clause | |
EEPS | Energy Efficiency Portfolio Standards | |
EGU | Electrical generating unit | |
EIP | 2010 Executive Incentive Plan, as amended | |
EPA | Environmental Protection Agency - federal |
Terms | Definitions | |
EPS | Earnings per share | |
ERISA | Employee Retirement Income Security Act of 1974, as amended | |
ERL | Environmental Response Law of the State of Hawaii | |
ERP/EAM | Enterprise Resource Planning/Enterprise Asset Management | |
ESG | Environmental, social and governance | |
Exchange Act | Securities Exchange Act of 1934 | |
FASB | Financial Accounting Standards Board | |
FDIC | Federal Deposit Insurance Corporation | |
FDICIA | Federal Deposit Insurance Corporation Improvement Act of 1991 |
federal | U.S. Government | |
FERC | Federal Energy Regulatory Commission | |
FHLB | Federal Home Loan Bank | |
FHLMC | Federal Home Loan Mortgage Corporation | |
FICO | ||
Fitch | Fitch Ratings, Inc. | |
FNMA | Federal National Mortgage Association | |
FRB | Federal Reserve Board | |
GAAP | Accounting principles generally accepted in the United States of America | |
GHG | Greenhouse gas | |
GNMA | Government National Mortgage Association | |
Gramm Act | Gramm-Leach-Bliley Act of 1999 | |
Hamakua Energy, LLC, an indirect subsidiary of | ||
Hawaii Electric Light | Hawaii Electric Light Company, Inc., an electric utility subsidiary of Hawaiian Electric Company, Inc. | |
Hawaiian Electric | Hawaiian Electric Company, Inc., an electric utility subsidiary of Hawaiian Electric Industries, Inc. and parent company of Hawaii Electric Light Company, Inc., Maui Electric Company, Limited, HECO Capital Trust III (unconsolidated financing subsidiary), Renewable Hawaii, Inc. and Uluwehiokama Biofuels Corp. | |
Hawaiian Electric’s MD&A | Hawaiian Electric Company, Inc.’s Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Form 10-K | |
HEI | Hawaiian Electric Industries, Inc., direct parent company of Hawaiian Electric Company, Inc., ASB Hawaii, Inc., | |
Selected sections of Proxy Statement for the | ||
HEI’s MD&A | Hawaiian Electric Industries, Inc.’s Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Form 10-K | |
HEIRSP | Hawaiian Electric Industries Retirement Savings Plan | |
HPOWER | City and County of Honolulu with respect to a power purchase agreement for a refuse-fired plant | |
HSFO | High sulfur fuel oil | |
HTM | Held-to-maturity | |
IPP | Independent power producer | |
IRP | Integrated resource plan | |
IRR | Interest rate risk | |
Kalaeloa | Kalaeloa Partners, L.P. | |
kV | Kilovolt | |
kW | Kilowatt/s (as applicable) | |
Kilowatthour/s (as applicable) | ||
LNG | Liquefied natural gas | |
LSFO | Low sulfur fuel oil | |
LTIP | Long-term incentive plan | |
Maui Electric | Maui Electric Company, Limited, an electric utility subsidiary of Hawaiian Electric Company, Inc. |
Terms | Definitions | |
Mauo | Mauo, LLC, an indirect subsidiary of Pacific Current | |
MBtu | Million British thermal unit | |
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Merger | As provided in the Merger Agreement (see below), merger of NEE Acquisition Sub II, Inc. with and into HEI, with HEI surviving, and then merger of HEI with and into NEE Acquisition Sub I, LLC, with NEE Acquisition Sub I, LLC surviving as a wholly owned subsidiary of NextEra Energy, Inc. |
Merger Agreement | Agreement and Plan of Merger by and among HEI, NextEra Energy, Inc., NEE Acquisition Sub II, Inc. and NEE Acquisition Sub I, LLC, dated December 3, 2014 and terminated July 16, 2016 | |
Moody’s | Moody’s Investors Service’s | |
MOU | Memorandum of Understanding | |
MPIR | Major Project Interim Recovery | |
MSFO | Medium sulfur fuel oil | |
MW | Megawatt/s (as applicable) | |
MWh | Megawatthour/s (as applicable) | |
NA | Not applicable | |
NEE | NextEra Energy, Inc. | |
NEM | Net energy metering | |
NII | Net interest income | |
NM | Not meaningful | |
NPBC | Net periodic benefits costs | |
O&M | Other operation and maintenance | |
OCC | Office of the Comptroller of the Currency | |
OPEB | Postretirement benefits other than pensions | |
OTS | Office of Thrift Supervision, Department of Treasury | |
OTTI | Other-than-temporary impairment | |
Pacific Current | Pacific Current, LLC, a wholly owned subsidiary of HEI and indirect parent company of Hamakua Energy and Mauo | |
PBO | Projected benefit obligation | |
PCB | Polychlorinated biphenyls | |
PGV | Puna Geothermal Venture | |
PIMs | Performance incentive mechanisms | |
PPA | Power purchase agreement | |
PPAC | Purchased power adjustment clause | |
PSIPs | Power Supply Improvement Plans | |
PUC | Public Utilities Commission of the State of Hawaii | |
PURPA | Public Utility Regulatory Policies Act of 1978 | |
PV | Photovoltaic | |
QF | Qualifying Facility under the Public Utility Regulatory Policies Act of 1978 | |
QTL | Qualified Thrift Lender | |
RAM | Rate adjustment mechanism | |
RBA | Revenue balancing account | |
Registrant | Each of Hawaiian Electric Industries, Inc. and Hawaiian Electric Company, Inc. | |
REIP | Renewable Energy Infrastructure Program | |
RFP | Request for proposals | |
RHI | Renewable Hawaii, Inc., a wholly-owned nonregulated subsidiary of Hawaiian Electric Company, Inc. | |
ROA | Return on assets | |
ROACE | Return on average common equity | |
RORB | Return on rate base | |
RPS | Renewable portfolio standards | |
S&P | Standard & Poor’s | |
SEC | Securities and Exchange Commission |
Terms | Definitions | |
See | Means the referenced material is incorporated by reference (or means refer to the referenced section in this document or the referenced exhibit or other document) | |
SLHCs | Savings & Loan Holding Companies | |
SOIP | 1987 Stock Option and Incentive Plan, as amended. Shares of HEI common stock reserved for issuance under the SOIP were deregistered and delisted in 2015. | |
Spin-Off | The previously planned distribution to HEI shareholders of all of the common stock of ASB Hawaii immediately prior to the Merger, which was terminated | |
SPRBs | Special Purpose Revenue Bonds | |
ST | Steam turbine | |
state | State of Hawaii |
TCFD | Task Force on Climate-related Financial Disclosure | |
TDR | Troubled debt restructuring | |
Tesoro | Tesoro Hawaii Corporation dba BHP Petroleum Americas Refining Inc., a fuel oil supplier | |
TOOTS | The Old Oahu Tug Service, Inc., a wholly-owned subsidiary of Hawaiian Electric Industries, Inc. | |
Trust III | HECO Capital Trust III | |
UBC | Uluwehiokama Biofuels Corp., a wholly-owned nonregulated subsidiary of Hawaiian Electric Company, Inc. | |
Utilities | Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited | |
VIE | Variable interest entity |
Cautionary Note Regarding Forward-Looking Statements |
• | the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2020, which may result in more volatility in the provision for loan losses prospectively; |
ITEM 1. | BUSINESS |
December 31 | 2016 | 2015 | 2014 | 2013 | 2012 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||
HEI | 41 | 39 | 44 | 43 | 42 | 45 | 46 | 41 | 41 | 39 | ||||||||||||||||||
Hawaiian Electric and its subsidiaries | 2,662 | 2,727 | 2,759 | 2,764 | 2,658 | 2,670 | 2,704 | 2,724 | 2,662 | 2,727 | ||||||||||||||||||
ASB and its subsidiaries | 1,093 | 1,152 | 1,162 | 1,159 | 1,170 | |||||||||||||||||||||||
ASB | 1,126 | 1,148 | 1,115 | 1,093 | 1,152 | |||||||||||||||||||||||
3,796 | 3,918 | 3,965 | 3,966 | 3,870 | 3,841 | 3,898 | 3,880 | 3,796 | 3,918 |
Years ended December 31 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Customer accounts* | Electric sales revenues | Customer accounts* | Electric sales revenues | Customer accounts* | Electric sales revenues | Customer accounts* | Electric sales revenues | Customer accounts* | Electric sales revenues | Customer accounts* | Electric sales revenues | ||||||||||||||||||||||||||||
Hawaiian Electric | 304,261 | $ | 1,466,225 | 302,958 | $ | 1,636,245 | 301,953 | $ | 2,134,094 | 306,368 | $ | 1,784,982 | 305,456 | $ | 1,789,527 | 304,948 | $ | 1,592,016 | ||||||||||||||||||||||
Hawaii Electric Light | 85,029 | 309,521 | 84,309 | 343,843 | 83,421 | 420,647 | 86,576 | 360,019 | 85,758 | 371,713 | 85,925 | 331,697 | ||||||||||||||||||||||||||||
Maui Electric | 70,872 | 306,767 | 70,533 | 343,722 | 70,042 | 420,734 | 72,522 | 372,034 | 71,875 | 364,967 | 71,352 | 323,882 | ||||||||||||||||||||||||||||
460,162 | $ | 2,082,513 | 457,800 | $ | 2,323,810 | 455,416 | $ | 2,975,475 | 465,466 | $ | 2,517,035 | 463,089 | $ | 2,526,207 | 462,225 | $ | 2,247,595 |
Mechanism | Description |
Sales decoupling | Provides predictable revenue stream by fixing net revenues at the level approved in last rate case (revenues not linked to kWh sales) |
Revenue adjustment mechanism (RAM) | Annually adjusts revenue to recover general inflation of operations and maintenance expenses and baseline plant additions between rate cases |
Major Projects Interim Recovery adjustment mechanism (MPIR) | Reduces regulatory lag and permits recovery in between rate cases through the revenue balancing account (RBA) of costs (net of benefits) for major capital projects including, but not restricted to, projects to advance renewable energy |
Energy cost recovery clause (ECRC) and purchased power adjustment clause (PPAC) | Allows for timely recovery of fuel and purchased power costs to reduce earnings volatility. Symmetrical fossil fuel cost risk-sharing (98% customer/2% utility) mechanism established for Hawaiian Electric and Maui Electric capped at $2.5 million and $0.6 million, respectively. Hawaii Electric Light’s ECRC does not have cost risk-sharing mechanism |
Pension and post-employment benefit trackers | Allow tracking of pension and post-employment benefit costs and contributions above or below the cost included in rates in a separate regulatory asset/liability account |
Renewable energy infrastructure program | Permits recovery of renewable energy infrastructure projects through a surcharge |
Years ended December 31 | 2016 | 2015 | 2014 | 2013 | 2012 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||
KWH sales (millions) | ||||||||||||||||||||||||||||||||||||||
kWh sales (millions) | ||||||||||||||||||||||||||||||||||||||
Residential | 2,332.7 | 2,396.5 | 2,379.7 | 2,450.9 | 2,582.0 | 2,439.3 | 2,410.8 | 2,334.5 | 2,332.7 | 2,396.5 | ||||||||||||||||||||||||||||
Commercial | 2,911.5 | 2,977.8 | 3,022.0 | 3,105.9 | 3,074.4 | 2,793.0 | 2,810.8 | 2,867.9 | 2,911.5 | 2,977.8 | ||||||||||||||||||||||||||||
Large light and power | 3,555.1 | 3,532.9 | 3,524.5 | 3,462.7 | 3,499.8 | 3,467.2 | 3,425.1 | 3,443.3 | 3,555.1 | 3,532.9 | ||||||||||||||||||||||||||||
Other | 46.0 | 49.3 | 50.0 | 50.0 | 49.8 | 40.5 | 42.1 | 44.7 | 46.0 | 49.3 | ||||||||||||||||||||||||||||
8,845.3 | 8,956.5 | 8,976.2 | 9,069.5 | 9,206.0 | 8,740.0 | 8,688.8 | 8,690.4 | 8,845.3 | 8,956.5 | |||||||||||||||||||||||||||||
KWH net generated and purchased (millions) | ||||||||||||||||||||||||||||||||||||||
kWh net generated and purchased (millions) | ||||||||||||||||||||||||||||||||||||||
Net generated | 4,940.4 | 5,124.5 | 5,131.3 | 5,352.0 | 5,601.7 | 4,972.7 | 4,966.4 | 4,888.4 | 4,940.4 | 5,124.5 | ||||||||||||||||||||||||||||
Purchased | 4,349.1 | 4,308.3 | 4,306.7 | 4,195.2 | 4,093.2 | 4,168.6 | 4,139.3 | 4,247.1 | 4,349.1 | 4,308.3 | ||||||||||||||||||||||||||||
9,289.5 | 9,432.8 | 9,438.0 | 9,547.2 | 9,694.9 | 9,141.3 | 9,105.7 | 9,135.5 | 9,289.5 | 9,432.8 | |||||||||||||||||||||||||||||
RPS (%) | 28.4 | 26.7 | 26.8 | 25.8 | 23.2 | |||||||||||||||||||||||||||||||||
Losses and system uses (%) | 4.6 | 4.8 | 4.7 | 4.8 | 4.8 | 4.2 | 4.4 | 4.7 | 4.6 | 4.8 | ||||||||||||||||||||||||||||
Energy supply (December 31) | ||||||||||||||||||||||||||||||||||||||
Net generating capability—MW | 1,669 | 1,669 | 1,787 | 1,787 | 1,787 | 1,737 | 1,739 | 1,673 | 1,669 | 1,669 | ||||||||||||||||||||||||||||
Firm and other purchased capability—MW | 551 | 555 | 575 | 567 | 545 | |||||||||||||||||||||||||||||||||
Firm and other purchased capability—MW1 | 517 | 517 | 551 | 551 | 555 | |||||||||||||||||||||||||||||||||
2,220 | 2,224 | 2,362 | 2,354 | 2,332 | 2,254 | 2,256 | 2,224 | 2,220 | 2,224 | |||||||||||||||||||||||||||||
Net peak demand—MW1 | 1,593 | 1,610 | 1,554 | 1,535 | 1,535 | |||||||||||||||||||||||||||||||||
Btu per net KWH generated | 10,710 | 10,632 | 10,613 | 10,570 | 10,533 | |||||||||||||||||||||||||||||||||
Average fuel oil cost per Mbtu (cents) | 862.3 | 1,206.5 | 2,087.6 | 2,103.2 | 2,210.4 | |||||||||||||||||||||||||||||||||
Net peak demand—MW2 | 1,601 | 1,598 | 1,584 | 1,593 | 1,610 | |||||||||||||||||||||||||||||||||
Btu per net kWh generated | 10,860 | 10,826 | 10,812 | 10,710 | 10,632 | |||||||||||||||||||||||||||||||||
Average fuel oil cost per MBtu (cents) | 1,337.6 | 1,420.2 | 1,114.3 | 862.3 | 1,206.5 | |||||||||||||||||||||||||||||||||
Customer accounts (December 31) | ||||||||||||||||||||||||||||||||||||||
Residential | 402,818 | 400,655 | 398,256 | 394,910 | 392,025 | 409,689 | 407,505 | 406,241 | 402,818 | 400,655 | ||||||||||||||||||||||||||||
Commercial | 55,089 | 54,878 | 54,924 | 54,616 | 54,005 | 54,233 | 54,075 | 53,732 | 55,089 | 54,878 | ||||||||||||||||||||||||||||
Large light and power | 670 | 659 | 596 | 556 | 577 | 700 | 696 | 656 | 670 | 659 | ||||||||||||||||||||||||||||
Other | 1,585 | 1,608 | 1,640 | 1,660 | 1,636 | 844 | 813 | 1,596 | 1,585 | 1,608 | ||||||||||||||||||||||||||||
460,162 | 457,800 | 455,416 | 451,742 | 448,243 | 465,466 | 463,089 | 462,225 | 460,162 | 457,800 | |||||||||||||||||||||||||||||
Electric revenues (thousands) | ||||||||||||||||||||||||||||||||||||||
Residential | $ | 638,776 | $ | 709,886 | $ | 879,605 | $ | 892,438 | $ | 952,159 | $ | 791,398 | $ | 788,028 | $ | 691,857 | $ | 638,776 | $ | 709,886 | ||||||||||||||||||
Commercial | 711,553 | 798,202 | 1,027,588 | 1,044,166 | 1,060,983 | 829,000 | 843,326 | 766,921 | 711,553 | 798,202 | ||||||||||||||||||||||||||||
Large light and power | 720,878 | 802,366 | 1,051,119 | 1,015,079 | 1,062,226 | 884,722 | 882,443 | 776,808 | 720,878 | 802,366 | ||||||||||||||||||||||||||||
Other | 11,306 | 13,356 | 17,163 | 17,008 | 17,392 | 11,915 | 12,410 | 12,009 | 11,306 | 13,356 | ||||||||||||||||||||||||||||
$ | 2,082,513 | $ | 2,323,810 | $ | 2,975,475 | $ | 2,968,691 | $ | 3,092,760 | $ | 2,517,035 | $ | 2,526,207 | $ | 2,247,595 | $ | 2,082,513 | $ | 2,323,810 | |||||||||||||||||||
Average revenue per KWH sold (cents) | 23.54 | 25.90 | 33.15 | 32.73 | 33.60 | |||||||||||||||||||||||||||||||||
Average revenue per kWh sold (cents) | 28.80 | 29.07 | 25.86 | 23.54 | 25.90 | |||||||||||||||||||||||||||||||||
Residential | 27.38 | 29.62 | 36.96 | 36.41 | 36.88 | 32.44 | 32.69 | 29.64 | 27.38 | 29.62 | ||||||||||||||||||||||||||||
Commercial | 24.44 | 26.81 | 34.00 | 33.62 | 34.51 | 29.68 | 30.00 | 26.74 | 24.44 | 26.81 | ||||||||||||||||||||||||||||
Large light and power | 20.28 | 22.71 | 29.82 | 29.31 | 30.35 | 25.52 | 25.76 | 22.56 | 20.28 | 22.71 | ||||||||||||||||||||||||||||
Other | 24.61 | 27.05 | 34.36 | 34.02 | 34.93 | 29.39 | 29.47 | 26.82 | 24.61 | 27.05 | ||||||||||||||||||||||||||||
Residential statistics | ||||||||||||||||||||||||||||||||||||||
Average annual use per customer account (KWH) | 5,806 | 5,996 | 6,000 | 6,220 | 6,596 | |||||||||||||||||||||||||||||||||
Average annual use per customer account (kWh) | 5,967 | 5,923 | 5,779 | 5,806 | 5,996 | |||||||||||||||||||||||||||||||||
Average annual revenue per customer account | $ | 1,590 | $ | 1,776 | $ | 2,218 | $ | 2,265 | $ | 2,432 | $ | 1,936 | $ | 1,936 | $ | 1,713 | $ | 1,590 | $ | 1,776 | ||||||||||||||||||
Average number of customer accounts | 401,796 | 399,674 | 396,640 | 394,024 | 391,437 | 408,768 | 407,044 | 403,983 | 401,796 | 399,674 |
1 | Since May 2018, Puna Geothermal Venture (PGV) has been offline due to lava flow on Hawaii Island; therefore, PGV’s capability has not been incorporated into the utility’s firm contract power capability as of December 31, 2019. |
2 | Sum of the net peak demands on all islands served, noncoincident and nonintegrated. |
Hawaiian Electric | Hawaii Electric Light | Maui Electric | Hawaiian Electric | Hawaii Electric Light | Maui Electric | ||||||||||||||||||||||||||||||
Island of Oahu | Island of Hawaii | Island of Maui | Island of Lanai | Island of Molokai | Total | Island of Oahu | Island of Hawaii | Island of Maui | Island of Lanai | Island of Molokai | Total | ||||||||||||||||||||||||
Net generating and firm purchased capability (MW) as of December 31, 20161 | |||||||||||||||||||||||||||||||||||
Net generating and firm purchased capability (MW) as of December 31, 20191 | |||||||||||||||||||||||||||||||||||
Conventional oil-fired steam units | 999.5 | 49.4 | 35.9 | — | — | 1,084.8 | 999.5 | 50.1 | 35.9 | — | — | 1,085.5 | |||||||||||||||||||||||
Diesel | — | 27.0 | 96.8 | 9.3 | 9.6 | 142.7 | — | 29.5 | 96.8 | 9.4 | 9.8 | 145.5 | |||||||||||||||||||||||
Combustion turbines (peaking units) | 101.8 | — | — | — | — | 101.8 | 230.8 | — | — | — | — | 230.8 | |||||||||||||||||||||||
Other combustion turbines | — | 46.3 | — | — | 2.2 | 48.5 | — | 46.3 | — | — | 2.2 | 48.5 | |||||||||||||||||||||||
Combined-cycle unit | — | 56.3 | 113.6 | — | — | 169.9 | — | 56.3 | 113.6 | — | — | 169.9 | |||||||||||||||||||||||
Biodiesel | 121.0 | — | — | — | — | 121.0 | 57.4 | — | — | — | — | 57.4 | |||||||||||||||||||||||
Firm contract power2 | 456.5 | 94.6 | — | — | — | 551.1 | 456.5 | 60.0 | — | — | — | 516.5 | |||||||||||||||||||||||
1,678.8 | 273.6 | 246.3 | 9.3 | 11.8 | 2,219.8 | 1,744.2 | 242.2 | 246.3 | 9.4 | 12.0 | 2,254.1 | ||||||||||||||||||||||||
Net peak demand (MW)3 | 1,192.0 | 188.5 | 201.0 | 5.7 | 5.7 | 1,592.9 | 1,193.0 | 192.1 | 204.3 | 6.1 | 6.0 | 1,601.5 | |||||||||||||||||||||||
Reserve margin | 40.2 | % | 45.1 | % | 23.2 | % | 63.2 | % | 107.0 | % | 40.8 | % | 44.8 | % | 26.1 | % | 23.2 | % | 54.1 | % | 100.0 | % | 40.7 | % | |||||||||||
Annual load factor | 66.7 | % | 69.4 | % | 63.5 | % | 62.9 | % | 62.3 | % | 66.6 | % | 65.4 | % | 66.7 | % | 62.5 | % | 64.4 | % | 61.7 | % | 65.2 | % | |||||||||||
KWH net generated and purchased (millions) | 6,963.1 | 1,145.7 | 1,118.2 | 31.4 | 31.1 | 9,289.5 | |||||||||||||||||||||||||||||
kWh net generated and purchased (millions) | 6,833.8 | 1,122.1 | 1,118.6 | 34.4 | 32.4 | 9,141.3 |
1 | Hawaiian Electric units at normal ratings; Hawaii Electric Light and Maui Electric units at reserve ratings. |
2 | Nonutility generators - Hawaiian Electric: 208 MW (Kalaeloa Partners, L.P., oil-fired), 180 MW (AES Hawaii, Inc., coal-fired) and 68.5 MW (HPOWER, refuse-fired); Hawaii Electric Light: |
3 | Noncoincident and nonintegrated. |
Hawaiian Electric | Hawaii Electric Light | Maui Electric | Consolidated | ||||||||||||||||||||
$/Barrel | ¢/MBtu | $/Barrel | ¢/MBtu | $/Barrel | ¢/MBtu | $/Barrel | ¢/MBtu | ||||||||||||||||
2016 | 51.30 | 815.2 | 53.27 | 876.9 | 62.21 | 1,048.6 | 53.49 | 862.3 | |||||||||||||||
2015 | 71.86 | 1,144.8 | 79.03 | 1,307.3 | 84.38 | 1,425.7 | 74.71 | 1,206.5 | |||||||||||||||
2014 | 130.71 | 2,075.4 | 121.49 | 2,002.5 | 130.51 | 2,198.9 | 129.65 | 2,087.6 |
Hawaiian Electric | Hawaii Electric Light | Maui Electric | Consolidated | ||||||||||||||||||||
$/Barrel | ¢/MBtu | $/Barrel | ¢/MBtu | $/Barrel | ¢/MBtu | $/Barrel | ¢/MBtu | ||||||||||||||||
2019 | 81.02 | 1,304.8 | 81.96 | 1,354.0 | 86.58 | 1,454.8 | 82.17 | 1,337.6 | |||||||||||||||
2018 | 86.11 | 1,371.8 | 89.81 | 1,489.5 | 93.60 | 1,573.6 | 87.90 | 1,420.2 | |||||||||||||||
2017 | 67.96 | 1,087.1 | 68.02 | 1,125.2 | 72.29 | 1,214.6 | 68.78 | 1,114.3 |
Hawaiian Electric | Hawaii Electric Light | Maui Electric | |||||||||||||||
% LSFO | % Biodiesel/Diesel | % IFO | % Diesel | % MSFO | % Diesel | ||||||||||||
2016 | 97 | 3 | 49 | 51 | 19 | 81 | |||||||||||
2015 | 96 | 4 | 43 | 57 | 16 | 84 | |||||||||||
2014 | 97 | 3 | 47 | 53 | 20 | 80 |
Hawaiian Electric | Hawaii Electric Light | Maui Electric | |||||||||||||||
% LSFO | % Biodiesel/Diesel | % HSFO | % Diesel | % HSFO | % Diesel | ||||||||||||
2019 | 93 | 7 | 44 | 56 | 24 | 76 | |||||||||||
2018 | 96 | 4 | 39 | 61 | 23 | 77 | |||||||||||
2017 | 95 | 5 | 43 | 57 | 23 | 77 |
Property | Location (island) | Principal Fuel Type | Generating Capacity (MW) | Status |
Hawaiian Electric: | ||||
Waiau1 | Oahu | LSFO / Diesel | 480.8 | Active |
Kahe1 | Oahu | LSFO | 620.5 | Active |
Campbell Industrial Park (CIP)1 | Oahu | Diesel | 129.0 | Active |
Honolulu Power Plant1 | Oahu | N/A | — | Deactivated in 2014 |
Schofield Generating Station2 | Oahu | Biodiesel / ULSD | 49.4 | Active |
West Loch PV Project3 | Oahu | Renewable (Solar) | 20.0 | Active |
Hawaii Electric Light4: | ||||
Shipman | Hawaii | N/A | — | Retired in 2015 |
Waimea | Hawaii | ULSD | 7.5 | Active |
Keahole | Hawaii | Diesel / ULSD | 77.6 | Active |
Puna | Hawaii | HSFO / Diesel | 36.7 | Active |
Hill/Kanoelehua | Hawaii | HSFO / ULSD | 55.4 | Active |
Distributed generators at substation sites | Hawaii | ULSD | 5.0 | Active |
Maui Electric5: | ||||
Kahului | Maui | HSFO | 35.9 | Active |
Maalaea | Maui | Diesel / ULSD | 210.4 | Active |
Miki Basin | Lanai | ULSD | 9.4 | Active |
Palaau | Molokai | ULSD | 12.0 | Active |
3 | Hawaiian Electric has a 37-year land lease on 102 acres, effective July 1, 2017, with the Secretary of the Navy. |
5 | The four plants are situated on Maui Electric-owned land having a combined area of 60.7 acres. |
Facility | Location (island) | Fuel Type | Capacity (barrels in thousands) | Generation Serviced |
Hawaiian Electric: | ||||
Barbers Point Tank Farm | Oahu | LSFO | 1,000 | Kahe, Waiau |
Generation sites - various (in aggregate) | Oahu | LSFO | 770 | Various |
Generation sites - various (in aggregate) | Oahu | Diesel | 132 | Various |
Generation sites - various (in aggregate) | Oahu | Biodiesel | 11 | Various |
Hawaii Electric Light1: | ||||
Generation sites - various (in aggregate) | Hawaii | HSFO | 48 | Various |
Generation sites - various (in aggregate) | Hawaii | Diesel | 82 | Various |
Maui Electric2: | ||||
Generation sites - various (in aggregate) | Maui | HSFO | 81 | Various |
Generation sites - various (in aggregate) | Maui | Diesel | 95 | Various |
2 | There are an additional 56,358 barrels of diesel oil storage capacity off-site at Aloha Petroleum, Ltd. (Aloha Petroleum)-owned terminalling facilities. |
Years ended December 31 | 2016 | 2015 | 2014 | |||||
Common equity to assets ratio | ||||||||
Average common equity divided by average total assets | 9.34 | % | 9.53 | % | 9.87 | % | ||
Return on assets | ||||||||
Net income for common stock divided by average total assets | 0.92 | 0.95 | 0.95 | |||||
Return on common equity | ||||||||
Net income for common stock divided by average common equity | 9.90 | 9.93 | 9.60 |
Years ended December 31 | 2019 | 2018 | 2017 | |||||
Equity to assets ratio | ||||||||
Average equity divided by average total assets | 9.30 | % | 8.86 | % | 9.10 | % | ||
Return on assets | ||||||||
Net income divided by average total assets | 1.25 | 1.20 | 1.02 | |||||
Return on equity | ||||||||
Net income divided by average equity | 13.48 | 13.51 | 11.20 |
2016 vs. 2015 | 2015 vs. 2014 | ||||||||||||||||||||||
(in thousands) | Rate | Volume | Total | Rate | Volume | Total | |||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest-earning deposits | $ | 228 | $ | (169 | ) | $ | 59 | $ | 9 | $ | 92 | $ | 101 | ||||||||||
FHLB stock | 192 | (148 | ) | 44 | 144 | (84 | ) | 60 | |||||||||||||||
Securities purchased under resale agreements | — | — | — | (10 | ) | (10 | ) | (20 | ) | ||||||||||||||
Available-for-sale investment securities | |||||||||||||||||||||||
Taxable | (1,018 | ) | 4,961 | 3,943 | (158 | ) | 3,471 | 3,313 | |||||||||||||||
Non-taxable | 14 | 14 | 28 | (214 | ) | (215 | ) | (429 | ) | ||||||||||||||
Total available-for-sale investment securities | (1,004 | ) | 4,975 | 3,971 | (372 | ) | 3,256 | 2,884 | |||||||||||||||
Loans | |||||||||||||||||||||||
Residential 1-4 family | (2,103 | ) | 444 | (1,659 | ) | (2,451 | ) | 1,793 | (658 | ) | |||||||||||||
Commercial real estate | 1,037 | 8,345 | 9,382 | (1,831 | ) | 4,485 | 2,654 | ||||||||||||||||
Home equity line of credit | 686 | 1,052 | 1,738 | (402 | ) | 1,197 | 795 | ||||||||||||||||
Residential land | (77 | ) | 94 | 17 | (73 | ) | 68 | (5 | ) | ||||||||||||||
Commercial | 2,538 | (2,077 | ) | 461 | (552 | ) | 540 | (12 | ) | ||||||||||||||
Consumer | 1,908 | 3,145 | 5,053 | 1,933 | 734 | 2,667 | |||||||||||||||||
Total loans | 3,989 | 11,003 | 14,992 | (3,376 | ) | 8,817 | 5,441 | ||||||||||||||||
Total increase (decrease) in interest income | 3,405 | 15,661 | 19,066 | (3,605 | ) | 12,071 | 8,466 | ||||||||||||||||
Interest expense | |||||||||||||||||||||||
Savings | (103 | ) | (42 | ) | (145 | ) | — | (123 | ) | (123 | ) | ||||||||||||
Interest-bearing checking | — | (34 | ) | (34 | ) | — | (13 | ) | (13 | ) | |||||||||||||
Money market | (5 | ) | 8 | 3 | — | 9 | 9 | ||||||||||||||||
Time certificates | (589 | ) | (1,054 | ) | (1,643 | ) | — | (144 | ) | (144 | ) | ||||||||||||
Advances from Federal Home Loan Bank | 21 | (35 | ) | (14 | ) | — | — | — | |||||||||||||||
Securities sold under agreements to repurchase | (285 | ) | 689 | 404 | 672 | (919 | ) | (247 | ) | ||||||||||||||
Total (increase) decrease in interest expense | (961 | ) | (468 | ) | (1,429 | ) | 672 | (1,190 | ) | (518 | ) | ||||||||||||
Increase (decrease) in net interest income | $ | 2,444 | $ | 15,193 | $ | 17,637 | $ | (2,933 | ) | $ | 10,881 | $ | 7,948 |
December 31 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
(dollars in thousands) | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | ||||||||||||||||||||||||
Real estate: 1 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,048,051 | 43.2 | $ | 2,069,665 | 44.8 | $ | 2,044,205 | 46.0 | $ | 2,006,007 | 48.2 | $ | 1,866,450 | 49.2 | |||||||||||||||||||
Commercial real estate | 800,395 | 16.9 | 690,561 | 14.9 | 531,917 | 12.0 | 440,443 | 10.6 | 375,677 | 9.9 | ||||||||||||||||||||||||
Home equity line of credit | 863,163 | 18.2 | 846,294 | 18.3 | 818,815 | 18.4 | 739,331 | 17.8 | 630,175 | 16.6 | ||||||||||||||||||||||||
Residential land | 18,889 | 0.4 | 18,229 | 0.4 | 16,240 | 0.4 | 16,176 | 0.4 | 25,815 | 0.7 | ||||||||||||||||||||||||
Commercial construction | 126,768 | 2.7 | 100,796 | 2.2 | 96,438 | 2.2 | 52,112 | 1.3 | 43,988 | 1.2 | ||||||||||||||||||||||||
Residential construction | 16,080 | 0.3 | 14,089 | 0.3 | 18,961 | 0.4 | 12,774 | 0.3 | 6,171 | 0.2 | ||||||||||||||||||||||||
Total real estate | 3,873,346 | 81.7 | 3,739,634 | 80.9 | 3,526,576 | 79.4 | 3,266,843 | 78.6 | 2,948,276 | 77.8 | ||||||||||||||||||||||||
Commercial | 692,051 | 14.6 | 758,659 | 16.4 | 791,757 | 17.8 | 783,388 | 18.8 | 721,349 | 19.0 | ||||||||||||||||||||||||
Consumer | 178,222 | 3.7 | 123,775 | 2.7 | 122,656 | 2.8 | 108,722 | 2.6 | 121,231 | 3.2 | ||||||||||||||||||||||||
Total loans | 4,743,619 | 100.0 | 4,622,068 | 100.0 | 4,440,989 | 100.0 | 4,158,953 | 100.0 | 3,790,856 | 100.0 | ||||||||||||||||||||||||
Less: Deferred fees and discounts | (4,926 | ) | (6,249 | ) | (6,338 | ) | (8,724 | ) | (11,638 | ) | ||||||||||||||||||||||||
Allowance for loan losses | (55,533 | ) | (50,038 | ) | (45,618 | ) | (40,116 | ) | (41,985 | ) | ||||||||||||||||||||||||
Total loans, net | $ | 4,683,160 | $ | 4,565,781 | $ | 4,389,033 | $ | 4,110,113 | $ | 3,737,233 |
December 31 | 2016 | ||||||||||||||
Due | In 1 year or less | After 1 year through 5 years | After 5 years | Total | |||||||||||
(in millions) | |||||||||||||||
Commercial – Fixed | $ | 51 | $ | 129 | $ | 22 | $ | 202 | |||||||
Commercial – Adjustable | 209 | 241 | 40 | 490 | |||||||||||
Total commercial | 260 | 370 | 62 | 692 | |||||||||||
Commercial construction – Fixed | — | — | — | — | |||||||||||
Commercial construction – Adjustable | 31 | 96 | — | 127 | |||||||||||
Total commercial construction | 31 | 96 | — | 127 | |||||||||||
Residential construction – Fixed | 16 | — | — | 16 | |||||||||||
Residential construction – Adjustable | — | — | — | — | |||||||||||
Total residential construction | 16 | — | — | 16 | |||||||||||
Total loans – Fixed | 67 | 129 | 22 | 218 | |||||||||||
Total loans – Adjustable | 240 | 337 | 40 | 617 | |||||||||||
Total loans | $ | 307 | $ | 466 | $ | 62 | $ | 835 |
December 31 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Nonaccrual loans— | |||||||||||||||||||
Real estate | |||||||||||||||||||
Residential 1-4 family | $ | 11,154 | $ | 20,554 | $ | 19,253 | $ | 19,679 | $ | 26,721 | |||||||||
Commercial real estate | 223 | 1,188 | 5,112 | 4,439 | 6,750 | ||||||||||||||
Home equity line of credit | 3,080 | 2,254 | 1,087 | 2,060 | 2,349 | ||||||||||||||
Residential land | 878 | 970 | 720 | 3,161 | 8,561 | ||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Total real estate | 15,335 | 24,966 | 26,172 | 29,339 | 44,381 | ||||||||||||||
Commercial | 6,708 | 20,174 | 10,053 | 18,781 | 20,222 | ||||||||||||||
Consumer | 1,282 | 895 | 661 | 401 | 284 | ||||||||||||||
Total nonaccrual loans | $ | 23,325 | $ | 46,035 | $ | 36,886 | $ | 48,521 | $ | 64,887 | |||||||||
Troubled debt restructured loans not included above— | |||||||||||||||||||
Real estate | |||||||||||||||||||
Residential 1-4 family | $ | 14,450 | $ | 13,962 | $ | 13,525 | $ | 9,744 | $ | 6,759 | |||||||||
Commercial real estate | 1,346 | — | — | — | — | ||||||||||||||
Home equity line of credit | 4,934 | 2,467 | 480 | 171 | — | ||||||||||||||
Residential land | 2,751 | 4,713 | 7,130 | 7,476 | 11,090 | ||||||||||||||
Total real estate | 23,481 | 21,142 | 21,135 | 17,391 | 17,849 | ||||||||||||||
Commercial | 14,146 | 1,104 | 2,972 | 1,649 | 43 | ||||||||||||||
Consumer | 10 | — | — | — | — | ||||||||||||||
Total troubled debt restructured loans | $ | 37,637 | $ | 22,246 | $ | 24,107 | $ | 19,040 | $ | 17,892 |
(dollars in millions) | Year ended December 31, 2016 | ||
Gross amount of interest income that would have been recorded in accordance with original contractual terms, and had been outstanding throughout the period or since origination, if held for only part of the period 1 | $ | 3 | |
Interest income actually recognized | 2 | ||
Total interest income foregone | $ | 1 |
(dollars in thousands) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Allowance for loan losses, January 1 | $ | 50,038 | $ | 45,618 | $ | 40,116 | $ | 41,985 | $ | 37,906 | |||||||||
Provision for loan losses | 16,763 | 6,275 | 6,126 | 1,507 | 12,883 | ||||||||||||||
Charge-offs | |||||||||||||||||||
Residential 1-4 family | 639 | 356 | 987 | 1,162 | 3,183 | ||||||||||||||
Home equity line of credit | 112 | 205 | 196 | 782 | 716 | ||||||||||||||
Residential land | 138 | — | 81 | 485 | 2,808 | ||||||||||||||
Total real estate | 889 | 561 | 1,264 | 2,429 | 6,707 | ||||||||||||||
Commercial | 5,943 | 1,074 | 1,872 | 3,056 | 3,606 | ||||||||||||||
Consumer | 7,413 | 4,791 | 2,414 | 2,717 | 2,517 | ||||||||||||||
Total charge-offs | 14,245 | 6,426 | 5,550 | 8,202 | 12,830 | ||||||||||||||
Recoveries | |||||||||||||||||||
Residential 1-4 family | 421 | 226 | 1,180 | 1,881 | 1,328 | ||||||||||||||
Home equity line of credit | 59 | 80 | 752 | 358 | 108 | ||||||||||||||
Residential land | 461 | 507 | 469 | 868 | 1,443 | ||||||||||||||
Total real estate | 941 | 813 | 2,401 | 3,107 | 2,879 | ||||||||||||||
Commercial | 1,093 | 2,773 | 1,636 | 1,089 | 649 | ||||||||||||||
Consumer | 943 | 985 | 889 | 630 | 498 | ||||||||||||||
Total recoveries | 2,977 | 4,571 | 4,926 | 4,826 | 4,026 | ||||||||||||||
Allowance for loan losses, December 31 | $ | 55,533 | $ | 50,038 | $ | 45,618 | $ | 40,116 | $ | 41,985 | |||||||||
Ratio of allowance for loan losses to loans receivable held for investment | 1.17 | % | 1.08 | % | 1.03 | % | 0.97 | % | 1.11 | % | |||||||||
Ratio of provision for loan losses during the year to average total loans | 0.36 | % | 0.14 | % | 0.14 | % | 0.04 | % | 0.35 | % | |||||||||
Ratio of net charge-offs during the year to average total loans | 0.24 | % | 0.04 | % | 0.01 | % | 0.09 | % | 0.24 | % |
December 31 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||
(dollars in thousands) | Allow-ance balance | Allowance to loan receivable % | Loan receivable % of total | Allow-ance balance | Allowance to loan receivable % | Loan receivable % of total | Allow-ance balance | Allowance to loan receivable % | Loan receivable % of total | ||||||||||||||||||||
Real estate | |||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,873 | 0.14 | 43.2 | $ | 4,186 | 0.20 | 44.8 | $ | 4,662 | 0.23 | 46.0 | |||||||||||||||||
Commercial real estate | 16,004 | 2.00 | 16.9 | 11,342 | 1.64 | 14.9 | 8,954 | 1.68 | 12.0 | ||||||||||||||||||||
Home equity line of credit | 5,039 | 0.58 | 18.2 | 7,260 | 0.86 | 18.3 | 6,982 | 0.85 | 18.4 | ||||||||||||||||||||
Residential land | 1,738 | 9.20 | 0.4 | 1,671 | 9.17 | 0.4 | 1,875 | 11.55 | 0.4 | ||||||||||||||||||||
Commercial construction | 6,449 | 5.09 | 2.7 | 4,461 | 4.43 | 2.2 | 5,471 | 5.67 | 2.2 | ||||||||||||||||||||
Residential construction | 12 | 0.07 | 0.3 | 13 | 0.09 | 0.3 | 28 | 0.15 | 0.4 | ||||||||||||||||||||
Total real estate | 32,115 | 0.83 | 81.7 | 28,933 | 0.77 | 80.9 | 27,972 | 0.79 | 79.4 | ||||||||||||||||||||
Commercial | 16,618 | 2.40 | 14.6 | 17,208 | 2.27 | 16.4 | 14,017 | 1.77 | 17.8 | ||||||||||||||||||||
Consumer | 6,800 | 3.82 | 3.7 | 3,897 | 3.15 | 2.7 | 3,629 | 2.96 | 2.8 | ||||||||||||||||||||
55,533 | 1.17 | 100.0 | 50,038 | 1.08 | 100.0 | 45,618 | 1.03 | 100.0 | |||||||||||||||||||||
Unallocated | — | — | — | ||||||||||||||||||||||||||
Total allowance for loan losses | $ | 55,533 | $ | 50,038 | $ | 45,618 |
December 31 | 2013 | 2012 | |||||||||||||||||
(dollars in thousands) | Allowance balance | Allowance to loan receivable % | Loan receivable % of total | Allowance balance | Allowance to loan receivable % | Loan receivable % of total | |||||||||||||
Real estate | |||||||||||||||||||
Residential 1-4 family | $ | 5,534 | 0.28 | 48.2 | $ | 6,068 | 0.33 | 49.2 | |||||||||||
Commercial real estate | 5,059 | 1.15 | 10.6 | 2,965 | 0.79 | 9.9 | |||||||||||||
Home equity line of credit | 5,229 | 0.71 | 17.8 | 4,493 | 0.71 | 16.6 | |||||||||||||
Residential land | 1,817 | 11.23 | 0.4 | 4,275 | 16.56 | 0.7 | |||||||||||||
Commercial construction | 2,397 | 4.60 | 1.3 | 2,023 | 4.60 | 1.2 | |||||||||||||
Residential construction | 19 | 0.15 | 0.3 | 9 | 0.15 | 0.2 | |||||||||||||
Total real estate | 20,055 | 0.61 | 78.6 | 19,833 | 0.67 | 77.8 | |||||||||||||
Commercial | 15,803 | 2.02 | 18.8 | 15,931 | 2.21 | 19.0 | |||||||||||||
Consumer | 2,367 | 2.18 | 2.6 | 4,019 | 3.32 | 3.2 | |||||||||||||
38,225 | 0.92 | 100.0 | 39,783 | 1.05 | 100.0 | ||||||||||||||
Unallocated | 1,891 | 2,202 | |||||||||||||||||
Total allowance for loan losses | $ | 40,116 | $ | 41,985 |
In 1 year or less | After 1 year through 5 years | After 5 years through 10 years | After 10 years | Mortgage-Related Securities | Total1 | ||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
U.S. Treasury and federal agency obligations | $ | 10 | $ | 77 | $ | 82 | $ | 25 | $ | — | $ | 194 | |||||||||||
Mortgage-related securities - FNMA, FHLMC and GNMA | — | — | — | — | 909 | 909 | |||||||||||||||||
Mortgage revenue bond2 | — | — | — | 15 | — | 15 | |||||||||||||||||
$ | 10 | $ | 77 | $ | 82 | $ | 40 | $ | 909 | $ | 1,118 | ||||||||||||
Weighted average yield | 1.13 | % | 1.78 | % | 2.32 | % | 2.77 | % | 1.99 | % | 2.02 | % |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||
(dollars in thousands) | Average balance | % of total deposits | Weighted average rate % | Average balance | % of total deposits | Weighted average rate % | Average balance | % of total deposits | Weighted average rate % | ||||||||||||||||||||
Interest-bearing deposit liabilities | |||||||||||||||||||||||||||||
Savings | $ | 2,117,186 | 57.5 | % | 0.07 | % | $ | 1,980,151 | 58.6 | % | 0.06 | % | $ | 1,879,373 | 58.3 | % | 0.06 | % | |||||||||||
Checking | 839,339 | 22.8 | 0.02 | 782,811 | 23.2 | 0.02 | 738,651 | 22.9 | 0.02 | ||||||||||||||||||||
Money market | 160,700 | 4.4 | 0.13 | 164,568 | 4.9 | 0.12 | 171,889 | 5.3 | 0.12 | ||||||||||||||||||||
Certificate | 565,135 | 15.3 | 0.95 | 449,179 | 13.3 | 0.83 | 434,934 | 13.5 | 0.83 | ||||||||||||||||||||
Total interest-bearing deposit liabilities | $ | 3,682,360 | 100.0 | % | 0.19 | % | $ | 3,376,709 | 100.0 | % | 0.16 | % | $ | 3,224,847 | 100.0 | % | 0.16 | % | |||||||||||
Total noninterest-bearing demand deposit liabilities | 1,559,132 | 1,426,962 | 1,285,964 | ||||||||||||||||||||||||||
Total deposit liabilities | $ | 5,241,492 | $ | 4,803,671 | $ | 4,510,811 |
(in thousands) | Amount | ||
Three months or less | $ | 99,452 | |
Greater than three months through six months | 54,795 | ||
Greater than six months through twelve months | 37,888 | ||
Greater than twelve months | 136,002 | ||
$ | 328,137 |
Number of branches | Number of branches | |||||||||||||||
December 31, 2016 | Owned | Leased | Total1 | |||||||||||||
December 31, 2019 | Owned | Leased | Total | |||||||||||||
Oahu | 7 | 29 | 36 | 9 | 25 | 34 | ||||||||||
Maui | 3 | 4 | 7 | 2 | 4 | 6 | ||||||||||
Hawaii | 3 | 2 | 5 | 3 | 2 | 5 | ||||||||||
Kauai | 2 | 1 | 3 | 2 | 1 | 3 | ||||||||||
Molokai | — | 1 | 1 | — | 1 | 1 | ||||||||||
15 | 37 | 52 | 16 | 33 | 49 |
ITEM 1A. | RISK FACTORS |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
Name | Age | Business experience for last 5 years and prior positions with the Company | ||
Constance H. Lau | HEI President and Chief Executive Officer since 5/06 HEI Director, 6/01 to 12/04 and since 5/06 Hawaiian Electric Chairman of the Board, ASB Hawaii Director since 5/06 ASB Chairman of the Board since 5/06, Risk Committee member since 2012 and Director since 1999 · ASB Chief Executive Officer, 6/01 to 11/10, and President, 6/01 to 1/08 · ASB Senior Executive Vice President and Chief Operating Officer and Director, 12/99 to 5/01 · HEI Power Corp. Financial Vice President and Treasurer, 5/97 to 8/99 · HEI Treasurer, 4/89 to 10/99, and HEI Assistant Treasurer, 12/87 to 4/89 · Hawaiian Electric Treasurer 12/87 to 4/89 and Assistant Corporate Counsel, 9/84 to 12/87 | |||
HEI Executive Vice President and Chief Financial Officer since | ||||
HEI Senior Vice President, Finance, · Prior to rejoining the Company in 2016: Northwest Natural Gas Company, Senior Vice President, Chief Financial Officer and Treasurer, 2/16 to 9/16, and Northwest Natural Gas Company, Senior Vice President and Chief Financial Officer, 6/15 to 2/16 · HEI Vice President, Finance, Treasurer and Controller, 8/13 to 6/15 · Prior to joining the Company in 2013: UBS Investment Bank, Managing Director, Global Power & Utilities Group 3/11 to 5/13 | ||||
Hawaiian Electric President and Chief Executive Officer since 2/20 Hawaiian Electric Director · Hawaiian Electric Senior · Hawaiian Electric Vice President, System Operation, 5/14 to · · Hawaiian Electric Vice President, Energy Resources, 8/10 to 12/12 · Hawaiian Electric Manager, Resource Acquisition Department, 3/09 to 8/10 · Hawaiian Electric Manager, Energy Projects Department, 5/04 to 3/09 · Hawaiian Electric Manager, Customer Installations Department, 1/03 to 5/04 · Hawaiian Electric Manager, Environmental Department, 4/98 to 12/02 · Hawaiian Electric Principal Environmental Scientist, 1/97 to 4/98 · Hawaiian Electric Senior Environmental Scientist, 5/96 to 12/96 · Hawaiian Electric Environmental Scientist, 8/93 to 5/96 | ||||
Richard F. Wacker | ASB President and Chief Executive Officer since 11/10 ASB Director since 11/10 |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Period* | (a) Total Number of Shares Purchased ** | (b) Average Price Paid per Share ** | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||
October 1 to 31, 2016 | — | $ | — | — | NA | |||||
November 1 to 30, 2016 | — | $ | — | — | NA | |||||
December 1 to 31, 2016 | 207,373 | $ | 32.28 | — | NA |
Period* | Total Number of Shares Purchased ** | Average Price Paid per Share ** | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||
October 1 to 31, 2019 | 23,372 | $ | 44.80 | — | NA | |||||
November 1 to 30, 2019 | 11,248 | $ | 43.55 | — | NA | |||||
December 1 to 31, 2019 | 148,516 | $ | 44.48 | — | NA | |||||
Total | 183,136 | $ | 44.47 | — | NA |
Quarters ended | 2016 | 2015 | |||||
(in thousands) | |||||||
March 31 | $ | 33,367 | $ | 31,840 | |||
June 30 | 33,481 | 33,300 | |||||
September 30 | 33,550 | 33,312 | |||||
December 31 | 33,652 | 33,313 |
Quarters ended | 2016 | 2015 | 2019 | 2018 | ||||||||||
(in thousands) | ||||||||||||||
March 31 | $ | 23,400 | $ | 22,601 | $ | 25,313 | $ | 25,826 | ||||||
June 30 | 23,400 | 22,602 | 25,313 | 25,826 | ||||||||||
September 30 | 23,399 | 22,601 | 25,313 | 25,827 | ||||||||||
December 31 | 23,400 | 22,601 | 25,313 | 25,826 |
ITEM 6. | SELECTED FINANCIAL DATA |
Selected Financial Data | ||||||||||||||||||||||||||||||||||||||
Hawaiian Electric Industries, Inc. and Subsidiaries | Hawaiian Electric Industries, Inc. and Subsidiaries | Hawaiian Electric Industries, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2016 | 2015 | 2014 | 2013 | 2012 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||
(dollars in thousands, except per share amounts) | (dollars in thousands, except per share amounts) | (dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||
Results of operations | ||||||||||||||||||||||||||||||||||||||
Revenues | $ | 2,380,654 | $ | 2,602,982 | $ | 3,239,542 | $ | 3,238,470 | $ | 3,374,995 | $ | 2,874,601 | $ | 2,860,849 | $ | 2,555,625 | $ | 2,380,654 | $ | 2,602,982 | ||||||||||||||||||
Net income for common stock | $ | 248,256 | $ | 159,877 | $ | 168,129 | $ | 161,709 | $ | 138,705 | 217,882 | 201,774 | 165,297 | 248,256 | 159,877 | |||||||||||||||||||||||
Basic earnings per common share | $ | 2.30 | $ | 1.50 | $ | 1.65 | $ | 1.63 | $ | 1.43 | 2.00 | 1.85 | 1.52 | 2.30 | 1.50 | |||||||||||||||||||||||
Diluted earnings per common share | $ | 2.29 | $ | 1.50 | $ | 1.63 | $ | 1.62 | $ | 1.42 | 1.99 | 1.85 | 1.52 | 2.29 | 1.50 | |||||||||||||||||||||||
Return on average common equity | 12.4 | % | 8.6 | % | 9.6 | % | 9.7 | % | 8.9 | % | 9.8 | % | 9.5 | % | 7.9 | % | 12.4 | % | 8.6 | % | ||||||||||||||||||
Financial position * | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,425,506 | $ | 11,782,018 | $ | 11,177,143 | $ | 10,331,921 | $ | 10,139,569 | $ | 13,745,251 | $ | 13,104,051 | $ | 12,534,160 | $ | 11,881,981 | $ | 11,275,931 | ||||||||||||||||||
Deposit liabilities | 5,548,929 | 5,025,254 | 4,623,415 | 4,372,477 | 4,229,916 | 6,271,902 | 6,158,852 | 5,890,597 | 5,548,929 | 5,025,254 | ||||||||||||||||||||||||||||
Other bank borrowings | 192,618 | 328,582 | 290,656 | 244,514 | 195,926 | 115,110 | 110,040 | 190,859 | 192,618 | 328,582 | ||||||||||||||||||||||||||||
Long-term debt, net | 1,619,019 | 1,578,368 | 1,498,547 | 1,483,960 | 1,412,386 | |||||||||||||||||||||||||||||||||
Long-term debt, net—other than bank | 1,964,365 | 1,879,641 | 1,683,797 | 1,619,019 | 1,578,368 | |||||||||||||||||||||||||||||||||
Preferred stock of subsidiaries – not subject to mandatory redemption | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | ||||||||||||||||||||||||||||
Common stock equity | 2,066,753 | 1,927,640 | 1,790,573 | 1,726,406 | 1,593,008 | 2,280,260 | 2,162,280 | 2,097,386 | 2,066,753 | 1,927,640 | ||||||||||||||||||||||||||||
Common equity ratio | 51 | % | 52 | % | 53 | % | 56 | % | 53 | % | ||||||||||||||||||||||||||||
Common stock | ||||||||||||||||||||||||||||||||||||||
Book value per common share * | $ | 19.05 | $ | 17.94 | $ | 17.46 | $ | 17.05 | $ | 16.27 | $ | 20.92 | $ | 19.86 | $ | 19.28 | $ | 19.03 | $ | 17.94 | ||||||||||||||||||
Market price per common share | ||||||||||||||||||||||||||||||||||||||
High | 34.98 | 34.86 | 35.00 | 28.30 | 29.24 | |||||||||||||||||||||||||||||||||
Low | 27.30 | 27.02 | 22.71 | 23.84 | 23.65 | |||||||||||||||||||||||||||||||||
December 31 | 33.07 | 28.95 | 33.48 | 26.06 | 25.14 | |||||||||||||||||||||||||||||||||
Dividends per common share | 1.24 | 1.24 | 1.24 | 1.24 | 1.24 | |||||||||||||||||||||||||||||||||
Dividends declared per common share | 1.28 | 1.24 | 1.24 | 1.24 | 1.24 | |||||||||||||||||||||||||||||||||
Dividend payout ratio | 54 | % | 82 | % | 75 | % | 76 | % | 87 | % | 64 | % | 67 | % | 82 | % | 54 | % | 82 | % | ||||||||||||||||||
Market price to book value per common share * | 174 | % | 161 | % | 192 | % | 153 | % | 155 | % | 224 | % | 184 | % | 188 | % | 174 | % | 161 | % | ||||||||||||||||||
Price earnings ratio ** | 14.4x | 19.3x | 20.3 | x | 16.0 | x | 17.6 | x | 23.5x | 19.8x | 23.8x | 14.4x | 19.3x | |||||||||||||||||||||||||
Common shares outstanding (thousands) * | 108,583 | 107,460 | 102,565 | 101,260 | 97,928 | 108,973 | 108,879 | 108,788 | 108,583 | 107,460 | ||||||||||||||||||||||||||||
Weighted-average | 108,102 | 106,418 | 101,968 | 98,968 | 96,908 | |||||||||||||||||||||||||||||||||
Weighted-average-basic (thousands) | 108,949 | 108,855 | 108,749 | 108,102 | 106,418 | |||||||||||||||||||||||||||||||||
Shareholders *** | 26,831 | 27,927 | 29,415 | 30,653 | 31,349 | 24,766 | 25,369 | 26,064 | 26,831 | 27,927 | ||||||||||||||||||||||||||||
Employees * | 3,796 | 3,918 | 3,965 | 3,966 | 3,870 | 3,841 | 3,898 | 3,880 | 3,796 | 3,918 |
* | At December 31. |
** | Calculated using December 31 market price per common share divided by basic earnings per common share. |
*** | At December 31. Represents registered shareholders plus participants in the HEI Dividend Reinvestment and Stock Purchase Plan (DRIP) who are not registered shareholders. As of February 13, |
Years ended December 31 | 2016 | 2015 | 2014 | 2013 | 2012 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||
Results of operations | ||||||||||||||||||||||||||||||
Revenues | $ | 2,094,368 | $ | 2,335,166 | $ | 2,987,323 | $ | 2,980,172 | $ | 3,109,439 | $ | 2,545,942 | $ | 2,546,525 | $ | 2,257,566 | $ | 2,094,368 | $ | 2,335,166 | ||||||||||
Net income for common stock | 142,317 | 135,714 | 137,641 | 122,929 | 99,276 | 156,840 | 143,653 | 119,951 | 142,317 | 135,714 | ||||||||||||||||||||
Financial position * | ||||||||||||||||||||||||||||||
Utility plant | $ | 6,870,627 | $ | 6,543,799 | $ | 6,220,397 | $ | 5,896,991 | $ | 5,567,346 | $ | 7,485,178 | $ | 7,092,483 | $ | 6,717,311 | $ | 6,327,102 | $ | 6,037,712 | ||||||||||
Accumulated depreciation | (2,369,282 | ) | (2,266,004 | ) | (2,175,510 | ) | (2,111,229 | ) | (2,040,789 | ) | (2,690,157 | ) | (2,577,342 | ) | (2,476,352 | ) | (2,369,282 | ) | (2,266,004 | ) | ||||||||||
Net utility plant | $ | 4,501,345 | $ | 4,277,795 | $ | 4,044,887 | $ | 3,785,762 | $ | 3,526,557 | $ | 4,795,021 | $ | 4,515,141 | $ | 4,240,959 | $ | 3,957,820 | $ | 3,771,708 | ||||||||||
Total assets | $ | 5,975,428 | $ | 5,672,210 | $ | 5,550,021 | $ | 5,058,065 | $ | 5,099,101 | $ | 6,388,682 | $ | 5,967,503 | $ | 5,630,613 | $ | 5,431,903 | $ | 5,166,123 | ||||||||||
Current portion of long-term debt | $ | — | $ | — | $ | — | $ | 11,383 | $ | — | $ | 95,953 | $ | — | $ | 49,963 | $ | — | $ | — | ||||||||||
Short-term borrowings from non-affiliates | 88,987 | 25,000 | 4,999 | — | — | |||||||||||||||||||||||||
Long-term debt, net | 1,319,260 | 1,278,702 | 1,199,025 | 1,198,200 | 1,138,180 | 1,401,714 | 1,418,802 | 1,318,516 | 1,319,260 | 1,278,702 | ||||||||||||||||||||
Common stock equity | 1,799,787 | 1,728,325 | 1,682,144 | 1,593,564 | 1,472,136 | 2,047,352 | 1,957,641 | 1,845,283 | 1,799,787 | 1,728,325 | ||||||||||||||||||||
Cumulative preferred stock-not subject to mandatory redemption | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | 34,293 | ||||||||||||||||||||
Capital structure | $ | 3,153,340 | $ | 3,041,320 | $ | 2,915,462 | $ | 2,837,440 | $ | 2,644,609 | $ | 3,668,299 | $ | 3,435,736 | $ | 3,253,054 | $ | 3,153,340 | $ | 3,041,320 | ||||||||||
Capital structure ratios (%) | ||||||||||||||||||||||||||||||
Debt (short-term debt, which is nil, and long-term debt, net, including current portion) | 41.8 | 42.1 | 41.1 | 42.6 | 43.0 | |||||||||||||||||||||||||
Debt (short-term borrowings, and long-term debt, net, including current portion) | 43.3 | 42.0 | 42.2 | 41.8 | 42.1 | |||||||||||||||||||||||||
Cumulative preferred stock | 1.1 | 1.1 | 1.2 | 1.2 | 1.3 | 0.9 | 1.0 | 1.1 | 1.1 | 1.1 | ||||||||||||||||||||
Common stock equity | 57.1 | 56.8 | 57.7 | 56.2 | 55.7 | 55.8 | 57.0 | 56.7 | 57.1 | 56.8 |
* | At December 31. |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
HEI Consolidated |
(dollars in millions, except per share amounts) | 2019 | % change | 2018 | % change | 2017 | ||||||||||||
Revenues | $ | 2,875 | — | $ | 2,861 | 12 | $ | 2,556 | |||||||||
Operating income | 349 | 5 | 333 | (4 | ) | 346 | |||||||||||
Net income for common stock | 218 | 8 | 202 | 22 | 165 | ||||||||||||
Net income (loss) by segment: | |||||||||||||||||
Electric utility | $ | 157 | 9 | $ | 144 | 20 | $ | 120 | |||||||||
Bank | 89 | 8 | 83 | 23 | 67 | ||||||||||||
Other | (28 | ) | (15 | ) | (24 | ) | (13 | ) | (22 | ) | |||||||
Net income for common stock | $ | 218 | 8 | $ | 202 | 22 | $ | 165 | |||||||||
Basic earnings per share | $ | 2.00 | 8 | $ | 1.85 | 22 | $ | 1.52 | |||||||||
Diluted earnings per share | $ | 1.99 | 8 | $ | 1.85 | 22 | $ | 1.52 | |||||||||
Dividends per share | $ | 1.28 | 3 | $ | 1.24 | — | $ | 1.24 | |||||||||
Weighted-average number of common shares outstanding (millions) | 108.9 | — | 108.9 | — | 108.7 | ||||||||||||
Dividend payout ratio | 64 | % | 67 | % | 82 | % |
(in millions) | 2019 | 2018 | Increase (decrease) | Primary reason(s) | ||||||||||
Operating loss1 | $ | (17 | ) | $ | (16 | ) | $ | (1 | ) | Lower Pacific Current operating income ($3 million in 2019 vs $4 million in 2018) due to higher Pacific Current administrative and general expenses. HEI corporate expenses were comparable year-over-year ($19 million in 2019 and 2018). | ||||
Interest expense & other | (21 | ) | (16 | ) | (5 | ) | Increase due to higher average borrowings and higher average interest rates. Average borrowings increased due primarily to $100 million tranche B private placement drawn in December 2018 to fund a contribution of utility equity. | |||||||
Income tax benefit | 10 | 8 | 2 | Higher tax benefit due to an increase in pretax losses | ||||||||||
Net loss | $ | (28 | ) | $ | (24 | ) | $ | (4 | ) |
(dollars in millions, except per share amounts) | 2016 | % change | 2015 | % change | 2014 | ||||||||||||
Revenues | $ | 2,381 | (9 | ) | $ | 2,603 | (20 | ) | $ | 3,240 | |||||||
Operating income | 349 | 8 | 323 | (3 | ) | 333 | |||||||||||
Merger termination fee | 90 | NM | — | — | — | ||||||||||||
Net income for common stock | 248 | 55 | 160 | (5 | ) | 168 | |||||||||||
Net income (loss) by segment: | |||||||||||||||||
Electric utility | $ | 142 | 5 | $ | 136 | (1 | ) | $ | 138 | ||||||||
Bank | 57 | 5 | 55 | 7 | 51 | ||||||||||||
Other | 49 | NM | (31 | ) | NM | (21 | ) | ||||||||||
Net income for common stock | $ | 248 | 55 | $ | 160 | (5 | ) | $ | 168 | ||||||||
Basic earnings per share | $ | 2.30 | 53 | $ | 1.50 | (9 | ) | $ | 1.65 | ||||||||
Diluted earnings per share | $ | 2.29 | 53 | $ | 1.50 | (8 | ) | $ | 1.63 | ||||||||
Dividends per share | $ | 1.24 | — | $ | 1.24 | — | $ | 1.24 | |||||||||
Weighted-average number of common shares outstanding (millions) | 108.1 | 2 | 106.4 | 4 | 102.0 | ||||||||||||
Dividend payout ratio | 54 | % | 82 | % | 75 | % |
December 31 | 2016 | 2015 | 2019 | 2018 | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||
Short-term borrowings—other than bank | $ | — | — | % | $ | 103 | 3 | % | $ | 186 | 4 | % | $ | 74 | 2 | % | ||||||||||
Long-term debt, net—other than bank | 1,619 | 43 | 1,578 | 43 | 1,964 | 44 | 1,880 | 45 | ||||||||||||||||||
Preferred stock of subsidiaries | 34 | 1 | 34 | 1 | 34 | 1 | 34 | 1 | ||||||||||||||||||
Common stock equity | 2,067 | 56 | 1,928 | 53 | 2,280 | 51 | 2,162 | 52 | ||||||||||||||||||
$ | 3,720 | 100 | % | $ | 3,643 | 100 | % | $ | 4,464 | 100 | % | $ | 4,150 | 100 | % |
Year ended December 31, 2016 | Year ended December 31, 2019 | |||||||||||||||||||||
(in millions) | Average balance | End-of-period balance | December 31, 2015 | Average balance | End-of-period balance | December 31, 2018 | ||||||||||||||||
Short-term borrowings 1 | ||||||||||||||||||||||
Commercial paper | $ | 43 | $ | — | $ | 103 | $ | 41 | $ | 97 | $ | 49 | ||||||||||
Line of credit draws | — | — | — | — | — | — | ||||||||||||||||
Undrawn capacity under HEI’s line of credit facility | 150 | 150 | 150 | — | 150 | 150 |
Note: This table does not include Hawaiian Electric’s separate commercial paper issuances and line of credit facilities and draws, which are disclosed below under “Electric utility—Liquidity and capital resources” below. The maximum amount of HEI’s short-term borrowings in 2019 was $102 million. |
Fitch | Moody’s | S | |
Long-term issuer default, long-term and | BBB | BBB- | |
Commercial paper | F3 | P-3 | A-3 |
Outlook | Stable |
* | Moody’s long-term debt rating was withdrawn because HEI does not currently have any outstanding, publicly traded debt. Moody’s continues to rate Hawaiian Electric’s long-term debt. See ‘Electric utility–Liquidity and capital resources’ below. |
** | On February 20, 2020, S&P revised HEI’s outlook to positive and affirmed HEI’s issuer credit and commercial paper ratings. |
December 31, 2016 | ||||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
(in millions) | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | ||||||||||||||||||||||||||||
Contractual obligations | ||||||||||||||||||||||||||||||||||||||
Investment in qualifying affordable housing projects | $ | 13 | $ | — | $ | — | $ | 1 | $ | 14 | $ | 13 | $ | 9 | $ | — | $ | 1 | $ | 23 | ||||||||||||||||||
Time certificates | 323 | 176 | 156 | 3 | 658 | 503 | 200 | 64 | 3 | 770 | ||||||||||||||||||||||||||||
Short-term borrowings | 186 | — | — | — | 186 | |||||||||||||||||||||||||||||||||
Other bank borrowings | 143 | 50 | — | — | 193 | 115 | — | — | — | 115 | ||||||||||||||||||||||||||||
Long-term debt | 125 | 125 | 146 | 1,231 | 1,627 | 102 | 267 | 159 | 1,446 | 1,974 | ||||||||||||||||||||||||||||
Interest on certificates of deposit, other bank borrowings and long-term debt | 82 | 151 | 140 | 800 | 1,173 | |||||||||||||||||||||||||||||||||
Operating leases, service bureau contract, maintenance and ASB construction-related agreements | 35 | 40 | 27 | 18 | 120 | |||||||||||||||||||||||||||||||||
Interest on CDs, other bank borrowings, short-term loan and long-term debt | 86 | 158 | 130 | 718 | 1,092 | |||||||||||||||||||||||||||||||||
Operating leases | ||||||||||||||||||||||||||||||||||||||
PPAs classified as leases | 63 | 105 | — | — | 168 | |||||||||||||||||||||||||||||||||
Other operating leases | 12 | 16 | 9 | 9 | 46 | |||||||||||||||||||||||||||||||||
Service bureau contract, maintenance agreements and other | 20 | 18 | 4 | 1 | 43 | |||||||||||||||||||||||||||||||||
Hawaiian Electric open purchase order obligations1 | 56 | 114 | — | — | 170 | 54 | 19 | 1 | — | 74 | ||||||||||||||||||||||||||||
Hawaiian Electric fuel oil purchase obligations (estimate based on December 31, 2016 fuel oil prices) | 125 | 238 | — | — | 363 | |||||||||||||||||||||||||||||||||
Hawaiian Electric power purchase obligations–minimum fixed capacity charges | 121 | 188 | 189 | 388 | 886 | |||||||||||||||||||||||||||||||||
Liabilities for uncertain tax positions | — | 4 | — | — | 4 | |||||||||||||||||||||||||||||||||
Hawaiian Electric fuel oil purchase obligations (estimate based on fuel oil price at December 31) | 7 | 15 | — | — | 22 | |||||||||||||||||||||||||||||||||
Hawaiian Electric power purchase–minimum fixed capacity charges not classified as leases | 51 | 76 | 76 | 241 | 444 | |||||||||||||||||||||||||||||||||
Total (estimated) | $ | 1,023 | $ | 1,086 | $ | 658 | $ | 2,441 | $ | 5,208 | $ | 1,212 | $ | 885 | $ | 443 | $ | 2,419 | $ | 4,959 |
1 | Includes contractual obligations and commitments for capital expenditures and expense amounts. |
1. | obligations under guarantee contracts, |
2. | retained or contingent interests in assets transferred to an unconsolidated entity or similar arrangements that serve as credit, liquidity or market risk support to that entity for such assets, |
3. | obligations under derivative instruments, and |
4. | obligations under a material variable interest held by the Company or the Utilities in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the Company or the Utilities, or engages in leasing, hedging or research and development services with the Company or the Utilities. |
Actuarial assumption | Change in assumption in basis points | Impact on HEI Consolidated PBO or APBO | Impact on Consolidated Hawaiian Electric PBO or APBO | |
(dollars in millions) | ||||
Pension benefits | ||||
Discount rate | ‘+/- 50 | $ | $ | |
Other benefits | ||||
Discount rate | ||||
Electric utility |
% | Rate-making Return on rate base (RORB)* | ROACE** | Rate-making ROACE*** | ||||||||||||||||||||||||
Year ended December 31, 2019 | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Hawaiian Electric | Hawaii Electric Light | Maui Electric | ||||||||||||||||||
Utility returns | 6.90 | 5.97 | 6.37 | 8.02 | 7.00 | 7.79 | 8.80 | 6.72 | 7.95 | ||||||||||||||||||
PUC-allowed returns | 7.57 | 7.52 | 7.43 | 9.50 | 9.50 | 9.50 | 9.50 | 9.50 | 9.50 | ||||||||||||||||||
Difference | (0.67 | ) | (1.55 | ) | (1.06 | ) | (1.48 | ) | (2.50 | ) | (1.71 | ) | (0.70 | ) | (2.78 | ) | (1.55 | ) |
% | Return on rate base (RORB)* | ROACE** | Rate-making ROACE*** | ||||||||||||||||||||||||
Year ended December 31, 2016 | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Hawaiian Electric | Hawaii Electric Light | Maui Electric | ||||||||||||||||||
Utility returns | 7.48 | 6.73 | 6.99 | 8.26 | 7.28 | 8.08 | 9.46 | 7.61 | 8.34 | ||||||||||||||||||
PUC-allowed returns | 8.11 | 8.31 | 7.34 | 10.00 | 10.00 | 9.00 | 10.00 | 10.00 | 9.00 | ||||||||||||||||||
Difference | (0.63 | ) | (1.58 | ) | (0.35 | ) | (1.74 | ) | (2.72 | ) | (0.92 | ) | (0.54 | ) | (2.39 | ) | (0.66 | ) |
2016 | 2015 | Increase (decrease) | (dollars in millions, except per barrel amounts) | |||||||||||||
$ | 2,094 | $ | 2,335 | $ | (241 | ) | Revenues. Net decrease largely due to: | |||||||||
$ | (198 | ) | lower fuel prices1 | |||||||||||||
(33 | ) | lower purchased power expense2 | ||||||||||||||
(25 | ) | lower KWH generated | ||||||||||||||
15 | higher RAM revenues | |||||||||||||||
455 | 655 | (200 | ) | Fuel oil expense. Decrease due to lower fuel cost and lower KWH generated | ||||||||||||
563 | 594 | (31 | ) | Purchased power expense. Decrease due to lower purchased power energy prices, largely due to lower fuel prices2 | ||||||||||||
406 | 413 | (7 | ) | Operation and maintenance expense. Net decrease due to: | ||||||||||||
(5 | ) | write off of ERP software costs in 2015, as a result of a PUC ERP/EAM decision | ||||||||||||||
(4 | ) | additional reserve for environmental costs in 20153 | ||||||||||||||
(1 | ) | lower storm weather repairs | ||||||||||||||
3 | higher PSIP consulting costs incurred in 2016, in order to complete the PSIP update in April 2016 and December 2016 | |||||||||||||||
1 | higher LNG consulting costs to negotiate LNG contract, which was subsequently terminated following HEI/Nextera merger termination | |||||||||||||||
387 | 399 | (12 | ) | Other expenses. Decrease in revenue taxes due to lower revenue, partly offset by higher depreciation expense for plant investments | ||||||||||||
284 | 274 | 10 | Operating income. Increase due to an overall decrease in expenses | |||||||||||||
142 | 136 | 6 | Net income for common stock. Increase due to higher operating income | |||||||||||||
8.1 | % | 8.0 | % | 0.1 | % | Return on average common equity | ||||||||||
53.49 | 74.71 | (21.22 | ) | Average fuel oil cost per barrel 1 | ||||||||||||
8,845 | 8,957 | (112 | ) | Kilowatthour sales (millions) 4 | ||||||||||||
4,788 | 5,082 | (294 | ) | Cooling degree days (Oahu) | ||||||||||||
2,662 | 2,727 | (65 | ) | Number of employees (at December 31) |
2019 | 2018 | Increase (decrease) | (dollars in millions, except per barrel amounts) | |||||||||||||
$ | 2,546 | $ | 2,547 | $ | (1 | ) | Revenues. Net decrease largely due to: | |||||||||
$ | (45 | ) | net of lower fuel prices and higher kWh generated11 | |||||||||||||
(6 | ) | net of lower purchased power energy costs and higher kWh purchased2 | ||||||||||||||
26 | higher electric rates | |||||||||||||||
16 | MPIR for Schofield Generating Station | |||||||||||||||
3 | higher PIM award due to low-cost variable renewable procurement, better reliability and call center performance | |||||||||||||||
2 | billing to a third party for mutual assistance work reimbursement | |||||||||||||||
2 | higher state refundable credit due to reduction in amortization period | |||||||||||||||
1 | pole attachment revenues | |||||||||||||||
721 | 761 | (40 | ) | Fuel oil expense.1 Net decrease due to lower fuel oil prices offset in part by higher kWh generated | ||||||||||||
633 | 639 | (6 | ) | Purchased power expense1,2. Net decrease largely due to lower purchased power energy price offset in part by higher kWh purchased | ||||||||||||
482 | 461 | 21 | Operation and maintenance expense. Increase largely due to: | |||||||||||||
7 | higher outside services for system support (Asset management, Energy Management, Enterprise Resources and Grid Modernization systems) | |||||||||||||||
7 | higher generation overhaul costs | |||||||||||||||
3 | reset of pension costs included in rates as part of rate case decisions | |||||||||||||||
2 | higher preventive/corrective maintenance expense for generation facilities | |||||||||||||||
2 | higher medical premium costs | |||||||||||||||
456 | 444 | 12 | Other expenses. Increase due to higher depreciation expense for plant investments in 2018 | |||||||||||||
254 | 242 | 12 | Operating income. Increase due to higher electric rates, offset in part by higher operation and maintenance, and depreciation expenses | |||||||||||||
197 | 180 | 17 | Income before income taxes. Increase due to higher electric rates, lower interest expense related to the hybrid securities redemption replaced with lower cost debt and refinancing of revenue bonds and higher AFUDC, offset in part by higher operation and maintenance and depreciation expense | |||||||||||||
157 | 144 | 13 | Net income for common stock. Increase due to higher electric rates and MPIR revenues, offset in part by higher operating expenses | |||||||||||||
7.8 | % | 7.6 | % | 0.2 | % | Return on average common equity | ||||||||||
82.17 | 87.90 | (5.73 | ) | Average fuel oil cost per barrel | ||||||||||||
8,740 | 8,689 | 51 | Kilowatthour sales (millions) 3 | |||||||||||||
2,670 | 2,704 | (34 | ) | Number of employees (at December 31) |
1 | The rate schedules of the electric utilities currently contain |
2 | The rate |
3 |
2015 | 2014 | Increase (decrease) | (dollars in millions, except per barrel amounts) | |||||||||||||
$ | 2,335 | $ | 2,987 | $ | (652 | ) | Revenues. Decrease largely due to: | |||||||||
$ | (520 | ) | lower fuel prices1 | |||||||||||||
(134 | ) | lower purchased power energy costs2 | ||||||||||||||
2 | higher KWH purchased | |||||||||||||||
655 | 1,132 | (477 | ) | Fuel oil expense. Decrease largely due to lower fuel costs and lower KWH generated | ||||||||||||
594 | 722 | (128 | ) | Purchased power expense. Decrease due to lower purchased power energy prices, largely due to lower fuel prices, offset by higher KWH purchased | ||||||||||||
413 | 411 | 2 | Operation and maintenance expense. Net increase due to: | |||||||||||||
5 | ERP software costs write off resulting from PUC ERP/EAM decision in 2015 | |||||||||||||||
4 | additional reserves for environmental costs3 | |||||||||||||||
3 | higher employee benefit costs due to affordable care act costs and higher health insurance premiums | |||||||||||||||
(9 | ) | higher 2014 smart grid initial phase costs | ||||||||||||||
399 | 447 | (48 | ) | Other expenses. Decrease in revenue taxes due to lower revenue, offset by higher depreciation expense for plant investments | ||||||||||||
274 | 276 | (2 | ) | Operating income. Decrease due to lower revenues | ||||||||||||
136 | 138 | (2 | ) | Net income for common stock. Decrease due to lower operating income | ||||||||||||
8.0 | % | 8.4 | % | (0.4 | )% | Return on average common equity | ||||||||||
74.71 | 129.65 | (54.94 | ) | Average fuel oil cost per barrel 1 | ||||||||||||
8,957 | 8,976 | (19 | ) | Kilowatthour sales (millions) 4 | ||||||||||||
5,082 | 4,909 | 173 | Cooling degree days (Oahu) | |||||||||||||
2,727 | 2,759 | (32 | ) | Number of employees (at December 31) |
Test year (dollars in millions) | Date (filed/ implemented) | Amount | % over rates in effect | ROACE (%) | RORB (%) | Rate base | Common equity % | Stipulated agreement reached with Consumer Advocate | Date (filed/ implemented) | Amount | % over rates in effect | ROACE (%) | RORB (%) | Rate base | Common equity % | Stipulated agreement reached with Consumer Advocate | ||||||||||||||||||||||||||||||||
Hawaiian Electric | ||||||||||||||||||||||||||||||||||||||||||||||||
2011 (1) | ||||||||||||||||||||||||||||||||||||||||||||||||
20171 | 20171 | |||||||||||||||||||||||||||||||||||||||||||||||
Request | 7/30/10 | $ | 113.5 | 6.6 | 10.75 | 8.54 | $ | 1,569 | 56.29 | Yes | 12/16/16 | $ | 106.4 | 6.9 | 10.60 | 8.28 | $ | 2,002 | 57.36 | Yes | ||||||||||||||||||||||||||||
Interim increase | 7/26/11 | 53.2 | 3.1 | 10.00 | 8.11 | 1,354 | 56.29 | 2/16/18 | 36.0 | 2.3 | 9.50 | 7.57 | 1,980 | 57.10 | ||||||||||||||||||||||||||||||||||
Interim increase (adjusted) | 4/2/12 | 58.2 | 3.4 | 10.00 | 8.11 | 1,385 | 56.29 | |||||||||||||||||||||||||||||||||||||||||
Interim increase (adjusted) | 5/21/12 | 58.8 | 3.4 | 10.00 | 8.11 | 1,386 | 56.29 | |||||||||||||||||||||||||||||||||||||||||
Interim increase with Tax Act | 4/13/18 | (0.6 | ) | — | 9.50 | 7.57 | 1,993 | 57.10 | ||||||||||||||||||||||||||||||||||||||||
Final increase | 9/1/12 | 58.1 | 3.4 | 10.00 | 8.11 | 1,386 | 56.29 | 9/1/18 | (0.6 | ) | — | 9.50 | 7.57 | 1,993 | 57.10 | |||||||||||||||||||||||||||||||||
2014 (2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Request | 6/27/14 | |||||||||||||||||||||||||||||||||||||||||||||||
2017 (3) | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
Request | 12/16/16 | $ | 106.4 | 6.9 | 10.60 | 8.28 | 2,002 | 57.36 | 8/21/19 | $ | 77.6 | 4.1 | 10.50 | 7.97 | $ | 2,477 | 57.15 | |||||||||||||||||||||||||||||||
Hawaii Electric Light | ||||||||||||||||||||||||||||||||||||||||||||||||
2010 (4) | ||||||||||||||||||||||||||||||||||||||||||||||||
20162 | ||||||||||||||||||||||||||||||||||||||||||||||||
Request | 12/9/09 | $ | 20.9 | 6.0 | 10.75 | 8.73 | $ | 487 | 55.91 | Yes | 9/19/16 | $ | 19.3 | 6.5 | 10.60 | 8.44 | $ | 479 | 57.12 | Yes | ||||||||||||||||||||||||||||
Interim increase | 1/14/11 | 6.0 | 1.7 | 10.50 | 8.59 | 465 | 55.91 | 8/31/17 | 9.9 | 3.4 | 9.50 | 7.80 | 482 | 56.69 | ||||||||||||||||||||||||||||||||||
Interim increase (adjusted) | 1/1/12 | 5.2 | 1.5 | 10.50 | 8.59 | 465 | 55.91 | |||||||||||||||||||||||||||||||||||||||||
Interim increase with Tax Act | 5/1/18 | 1.5 | 0.5 | 9.50 | 7.80 | 481 | 56.69 | |||||||||||||||||||||||||||||||||||||||||
Final increase | 4/9/12 | 4.5 | 1.3 | 10.00 | 8.31 | 465 | 55.91 | 10/1/18 | — | — | 9.50 | 7.80 | 481 | 56.69 | ||||||||||||||||||||||||||||||||||
2013 (5) | ||||||||||||||||||||||||||||||||||||||||||||||||
20193 | ||||||||||||||||||||||||||||||||||||||||||||||||
Request | 8/16/12 | $ | 19.8 | 4.2 | 10.25 | 8.30 | $ | 455 | 57.05 | 12/14/18 | $ | 13.4 | 3.4 | 10.50 | 8.30 | $ | 537 | 56.91 | ||||||||||||||||||||||||||||||
Closed | 3/27/13 | |||||||||||||||||||||||||||||||||||||||||||||||
2016 (6) | ||||||||||||||||||||||||||||||||||||||||||||||||
Request | 9/19/16 | $ | 19.3 | 6.5 | 10.60 | 8.44 | $ | 479 | 57.12 | |||||||||||||||||||||||||||||||||||||||
Interim increase | 1/1/20 | 0.0 | 0.0 | 9.50 | 7.52 | 534 | 56.83 | |||||||||||||||||||||||||||||||||||||||||
Maui Electric | ||||||||||||||||||||||||||||||||||||||||||||||||
2012 (7) | ||||||||||||||||||||||||||||||||||||||||||||||||
20184 | ||||||||||||||||||||||||||||||||||||||||||||||||
Request | 7/22/11 | $ | 27.5 | 6.7 | 11.00 | 8.72 | $ | 393 | 56.85 | Yes | 10/12/17 | $ | 30.1 | 9.3 | 10.60 | 8.05 | $ | 473 | 56.94 | Yes | ||||||||||||||||||||||||||||
Interim increase | 6/1/12 | 13.1 | 3.2 | 10.00 | 7.91 | 393 | 56.86 | 8/23/18 | 12.5 | 3.8 | 9.50 | 7.43 | 462 | 57.02 | ||||||||||||||||||||||||||||||||||
Final increase | 8/1/13 | 5.3 | 1.3 | 9.00 | 7.34 | 393 | 56.86 | 6/1/19 | 12.2 | 3.7 | 9.50 | 7.43 | 454 | 57.02 | ||||||||||||||||||||||||||||||||||
2015 (8) | ||||||||||||||||||||||||||||||||||||||||||||||||
Request | 12/30/14 |
1 |
Utilities | Number of contracts | Total photovoltaic size (MW) | BESS Size (MW/MWh) | Guaranteed commercial operation dates | Contract term (years) | Total projected annual payment (in millions) | ||||||||
Hawaiian Electric | 4 | 139.5 | 139.5/558 | 9/30/21 & 12/31/21 | 20 & 25 | $ | 30.9 | |||||||
Hawaii Electric Light | 2 | 60 | 60/240 | 7/20/21 & 6/30/22 | 25 | 14.1 | ||||||||
Maui Electric | 2 | 75 | 75/300 | 7/20/21 & 6/30/22 | 25 | 17.6 | ||||||||
Total | 8 | 274.5 | 274.5 /1,098 | $ | 62.6 |
December 31 | 2016 | 2015 | 2019 | 2018 | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||
Short-term borrowings1 | $ | 89 | 2 | % | $ | 25 | 1 | % | ||||||||||||||||||
Long-term debt, net | $ | 1,319 | 42 | % | $ | 1,279 | 42 | % | 1,498 | 41 | 1,419 | 41 | ||||||||||||||
Preferred stock | 34 | 1 | 34 | 1 | 34 | 1 | 34 | 1 | ||||||||||||||||||
Common stock equity | 1,800 | 57 | 1,728 | 57 | 2,047 | 56 | 1,958 | 57 | ||||||||||||||||||
$ | 3,153 | 100 | % | $ | 3,041 | 100 | % | $ | 3,668 | 100 | % | $ | 3,436 | 100 | % |
1 | Short-term borrowings as of December 31, 2019 reflect the impact of funding for a senior note of $82 million included in long-term debt, net, which was paid off on January 1, 2020 (see Note 6 of the Consolidated Financial Statements). |
Year ended December 31, 2016 | Year ended December 31, 2019 | |||||||||||||||||||||
(in millions) | Average balance | End-of-period balance | December 31, 2015 | Average balance | End-of-period balance | December 31, 2018 | ||||||||||||||||
Short-term borrowings1 | ||||||||||||||||||||||
Commercial paper | $ | 13 | $ | — | $ | — | $ | 44 | $ | 39 | $ | — | ||||||||||
Line of credit draws | — | — | — | — | — | — | ||||||||||||||||
Borrowings from HEI | 4 | — | — | — | — | — | ||||||||||||||||
Undrawn capacity under line of credit facility | 200 | 200 | 200 | — | 200 | 200 |
1 | The maximum amount of external short-term borrowings |
Fitch | Moody’s | S | |
Long-term issuer default, long-term | BBB+ | Baa2 | BBB- |
Commercial paper | F2 | P-2 | A-3 |
Senior unsecured debt/special purpose revenue bonds | A- | Baa2 | BBB- |
Cumulative preferred stock (selected series) | * | Ba1 | * |
Outlook | Stable |
** | On February 20, 2020, S&P revised Utilities’ outlook to positive and affirmed Utilities’ issuer credit and commercial paper ratings. |
(in millions) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | ||||||
Total “up to” amounts of taxable debt authorized through 2022 | $ | 410 | $ | 150 | $ | 130 | |||
Less: | |||||||||
Taxable debt authorized and issued in 2018 under April 2018 Approval | 75 | 15 | 10 | ||||||
Taxable debt issuance to refinance the 2004 QUIDS | 30 | 10 | 10 | ||||||
Remaining authorized amounts | $ | 305 | $ | 125 | $ | 110 |
(in millions) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | ||||||
Total “up to” amounts of common stock authorized to issue and sell through 2021 | $ | 150.0 | $ | 10.0 | $ | 10.0 | |||
Supplemental increase authorized | 280.0 | 100.0 | 100.0 | ||||||
Total “up to” amounts of common stock authorized to issue and sell through 2022 | 430.0 | 110.0 | 110.0 | ||||||
Common stock authorized and issued in 2017, 2018 and 2019 | 120.2 | — | 11.2 | ||||||
Remaining authorized amounts | $ | 309.8 | $ | 110.0 | $ | 98.8 |
Years ended December 31 | Years ended December 31 | |||||||||||||||||||||||||||||
(in thousands) | 2016 | Change | 2015 | Change | 2014 | 2019 | 2018 | Change | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 369,917 | $ | 36,511 | $ | 333,406 | $ | 26,411 | $ | 306,995 | $ | 423,956 | $ | 393,613 | $ | 30,343 | ||||||||||||||
Net cash used in investing activities | (288,199 | ) | 20,583 | (308,782 | ) | (15,073 | ) | (293,709 | ) | (408,524 | ) | (405,182 | ) | (3,342 | ) | |||||||||||||||
Net cash used in financing activities | (31,881 | ) | (17,944 | ) | (13,937 | ) | 48,412 | (62,349 | ) | |||||||||||||||||||||
Net cash provided by (used in) financing activities | (9,415 | ) | 34,929 | (44,344 | ) |
December 31, 2016 | Payments due by period | |||||||||||||||||||||||||||||||||||||
December 31, 2019 | Payments due by period | |||||||||||||||||||||||||||||||||||||
(in millions) | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | ||||||||||||||||||||||||||||
Short-term borrowings | $ | 89 | $ | — | $ | — | $ | — | $ | 89 | ||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 50 | $ | 96 | $ | 1,181 | $ | 1,327 | 96 | 52 | 100 | 1,257 | 1,505 | |||||||||||||||||||||||
Interest on long-term debt | 66 | 132 | 130 | 797 | 1,125 | 61 | 121 | 111 | 691 | 984 | ||||||||||||||||||||||||||||
Operating leases | 9 | 11 | 9 | 7 | 36 | |||||||||||||||||||||||||||||||||
Open purchase order obligations ¹ | 56 | 114 | — | — | 170 | |||||||||||||||||||||||||||||||||
Fuel oil purchase obligations (estimate based on December 31, 2016 fuel oil prices) | 125 | 238 | — | — | 363 | |||||||||||||||||||||||||||||||||
Purchase power obligations-minimum fixed capacity charges | 121 | 188 | 189 | 388 | 886 | |||||||||||||||||||||||||||||||||
Liabilities for uncertain tax positions | — | 4 | — | — | 4 | |||||||||||||||||||||||||||||||||
PPAs classified as leases | 63 | 105 | — | — | 168 | |||||||||||||||||||||||||||||||||
Other leases | 7 | 8 | 3 | 2 | 20 | |||||||||||||||||||||||||||||||||
Open purchase order obligations 1 | 54 | 19 | 1 | — | 74 | |||||||||||||||||||||||||||||||||
Fuel oil purchase obligations (estimate based on fuel oil price at December 31) | 7 | 15 | — | — | 22 | |||||||||||||||||||||||||||||||||
Purchase power obligations-minimum fixed capacity charges not classified as leases | 51 | 76 | 76 | 241 | 444 | |||||||||||||||||||||||||||||||||
Total (estimated) | $ | 377 | $ | 737 | $ | 424 | $ | 2,373 | $ | 3,911 | $ | 428 | $ | 398 | $ | 291 | $ | 2,191 | $ | 3,308 |
Bank |
1. | deepening customer relationships; |
2. | building out product and service offerings to open new segments; |
3. | fully deploying online and remotely-assisted account opening capabilities; and |
4. | prioritizing efficiency actions to gain earnings leverage on organic growth. |
1. | attracting and retaining low-cost |
2. |
3. |
(in millions) | 2016 | 2015 | Increase (decrease) | Primary reason(s) | ||||||||||
Interest income | $ | 219 | $ | 200 | $ | 19 | Higher interest income was due to higher average earning asset balances and higher loan yields. ASB’s average loan portfolio balance for 2016 was $223 million higher than 2015 as the average commercial real estate, HELOC and consumer loan balances increased by $204 million, $32 million and $30 million, respectively. The growth in these loan portfolios was consistent with ASB’s portfolio mix targets and loan growth strategy. The commercial loan average balance decreased $55 million due to the strategic reduction of the nationally syndicated loan portfolio. The loan portfolio yield benefited from a shift in the mix of the loan portfolio and the repricing of the adjustable rate loans with the increase in the prime rate. The average investment and mortgage-related securities portfolio balance increased by $248 million as ASB purchased investments with liquidity in excess of loan growth funding. | |||||||
Noninterest income | 67 | 67 | — | Noninterest income was flat as higher gains on sale of investment securities and insurance proceeds in 2016 were offset by lower gains on sales of real estate and mortgage servicing rights. | ||||||||||
Revenues | 286 | 267 | 19 | |||||||||||
Interest expense | 13 | 12 | 1 | Higher interest expense was due to an increase in average interest-bearing liabilities. Average deposit balances for 2016 increased by $438 million compared to 2015 due to an increase in core deposits and term certificates of $322 million and $116 million, respectively. The other borrowings average balance decreased by $48 million due to a decrease in repurchase agreements. | ||||||||||
Provision for loan losses | 17 | 6 | 11 | Higher provision for loan losses for 2016 was primarily due to growth in the commercial real estate and consumer loan portfolios and additional reserves for specific commercial credits. The provision for loan losses in 2015 were used primarily to establish loan loss reserves for the growth in the loan portfolio and additional reserve levels for the commercial and unsecured consumer loan portfolios. | ||||||||||
Noninterest expense | 169 | 166 | 3 | Higher noninterest expense was primarily due to costs related to replacement and upgrade of ASB's electronic banking platform in mid 2016 to enhance the Bank's online and mobile banking services to consumer and business customers as well as expand its distribution channels. | ||||||||||
Expenses | 199 | 184 | 15 | |||||||||||
Operating income | 87 | 83 | 4 | Higher interest income, partly offset by higher provision for loan losses and noninterest expenses. | ||||||||||
Net income | 57 | 55 | 2 | Higher operating income, partly offset by higher taxes. | ||||||||||
Return on average common equity 1 | 9.9 | % | 9.9 | % | — | % |
(in millions) | 2019 | 2018 | Increase (decrease) | Primary reason(s) | ||||||||||
Interest income | $ | 266 | $ | 258 | $ | 8 | Higher interest income was due to higher average loan portfolio balances and yields, partly offset by a decrease in balances and yields in the investment securities portfolio. ASB’s average loan portfolio balance for 2019 was $231 million higher than 2018’s average loan portfolio balance primarily due to increases in the average HELOC, residential, commercial and consumer loan portfolio balances of $99 million, $59 million, $40 million and $30 million, respectively. The growth in these loan portfolios was consistent with ASB’s portfolio mix targets and loan growth strategy. The 2019 loan portfolio yield increased 5 basis points compared to the prior year loan portfolio yield due to the repricing of adjustable rate loans in the latter part of 2018 and early 2019. The average investment securities portfolio balance decreased by $86 million and the portfolio yield decreased 14 basis points. The decrease in the portfolio balance was due to ASB’s decision to use investment portfolio repayments to fund the growth in the loan portfolio rather than redeploy it into investment securities. The decrease in the investment yields was due to an increase in the amortization of premiums in the investment portfolio. |
(in millions) | 2015 | 2014 | Increase (decrease) | Primary reason(s) | 2019 | 2018 | Increase (decrease) | Primary reason(s) | ||||||||||||||||||||
Interest income | $ | 200 | $ | 191 | $ | 9 | The impact of higher average earning asset balances was partly offset by lower yields on earning assets. ASB’s average loan portfolio balance for 2015 was $213 million higher than 2014 as the average commercial real estate, residential, HELOC and commercial loan balances increased by $111 million, $40 million, $37 million and $15 million, respectively. The growth in these loan portfolios was consistent with ASB’s portfolio mix targets and loan growth strategy. The loan portfolio yield continued to be impacted by the interest rate environment as new loan production yields were lower than the average portfolio yield. The average investment and mortgage-related securities portfolio balance increased by $150 million as ASB purchased investments with liquidity in excess of loan growth funding. | |||||||||||||||||||||
Noninterest income | 67 | 61 | 6 | Higher noninterest income was due to an increase in gain on sale of loans as loan sales increased by $119 million as a result of ASB's decision to sell a larger portion of its low rate residential loan production, higher deposit related fee initiatives and gains on sales of real estate and mortgage servicing rights. 2014 noninterest income included the gain on sale of the municipal bond portfolio with no similar security sales in 2015. | 73 | 56 | 17 | Noninterest income was higher in 2019 compared to 2018 primarily due to a gain on sale of real estate, an increase in mortgage banking income and higher bank-owned life insurance payouts. ASB sold two office facilities that were no longer needed when ASB moved into its new campus headquarters, which resulted in a gain on sale of real estate of $10.8 million. There were no such sales in 2018. The increase in mortgage banking income was due to an increase in loan sales into the secondary market as a result of higher residential mortgage loan production in 2019 compared to 2018. The higher bank-owned life insurance income was due to higher proceeds from life insurance policies received in 2019 compared to the previous year. | ||||||||||||||||||||
Revenues | 267 | 252 | 15 | 339 | 314 | 25 | The increase in revenues was due to higher interest and noninterest income. | |||||||||||||||||||||
Interest expense | 12 | 11 | 1 | Higher interest expense was due to an increase in average interest-bearing liabilities. Average deposit balances for 2015 increased by $293 million compared to 2014 due to an increase in core deposits and term certificates of $279 million and $14 million, respectively. The other borrowings average balance increased by $64 million due to an increase in public repurchase agreements. | 18 | 15 | 3 | Higher interest expense was primarily due to an increase in term certificate balances and increased deposit rates. Average deposit balances for 2019 increased by $155 million compared to 2018 due to an increase in core deposits and time certificates of $134 million and $21 million, respectively. Average cost of deposits for 2019 was 27 basis points, or 4 basis points above the average cost of deposits for 2018. The other borrowings average balance decreased by $28 million primarily due to a decrease in repurchase agreements. Average cost of other borrowings for 2019 was 1.42%, or 32 basis points above the average cost of borrowings for 2018. | ||||||||||||||||||||
Provision for loan losses | 6 | 6 | — | The provision for loan losses for 2015 and 2014 were used primarily to establish loan loss reserves for the growth in the loan portfolio and cover net loan charge-offs. The provision for loan losses in 2015 also included higher reserve levels for the commercial loan portfolio. | 24 | 15 | 9 | The provision for loan losses for 2019 increased by $8.7 million compared to the provision for loan losses in 2018. The provision for loan losses in 2019 was primarily for additional loss reserves for the consumer and credit scored loan portfolios to cover net charge-offs, and reserves for an impaired commercial credit, partly offset by the release of reserves resulting from recoveries of previously charged-off loans. The provision for loan losses for 2018 was primarily for additional loss reserves for the consumer loan portfolio as a result of growth and increased net charge-offs, partly offset by the release of reserves for the commercial, commercial real estate and HELOC loan portfolios as a result of improved credit trends. | ||||||||||||||||||||
Noninterest expense | 166 | 156 | 10 | Higher noninterest expense was primarily due to higher compensation and benefits expense as a result of an increase in retail delivery compensation cost, higher performance-based incentive cost and higher benefits expenses related to the frozen defined benefit plan and medical insurance premium costs. | 185 | 177 | 8 | Higher noninterest expense was primarily due to higher compensation and employee benefit costs, and increases in occupancy and equipment expenses. The increase in compensation and employee benefits was due to an increase in the minimum pay rate for employees, annual merit increases and higher employee benefit costs. Occupancy and equipment expenses for 2019 included occupancy, depreciation and equipment expenses for the new campus while still including the costs of properties being vacated. | ||||||||||||||||||||
Expenses | 184 | 173 | 11 | 227 | 207 | 20 | The increase in expenses was primarily due to higher provision for loan losses, and increases in interest and noninterest expenses. | |||||||||||||||||||||
Operating income | 83 | 79 | 4 | Higher interest and noninterest income, partly offset by higher noninterest expenses. | 112 | 107 | 5 | Higher interest and noninterest income was partly offset by higher provision for loan losses, higher interest expense and higher noninterest expenses. | ||||||||||||||||||||
Net income | 55 | 51 | 4 | Higher operating income, partly offset by higher taxes. | 89 | 83 | 6 | The increase in net income was the result of higher operating income and lower income tax expense. | ||||||||||||||||||||
Return on average common equity 1 | 9.9 | % | 9.6 | % | 0.3 | % | ||||||||||||||||||||||
Return on average equity 1 | 13.5 | % | 13.5 | % | — | % |
For a discussion of 2017 results, please refer to the “Results of operations” section in Item 7, “Management Discussion and Analysis of Financial Condition and Results of Operations—Bank,” in the Company’s 2018 Form 10-K. |
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average balance | Interest1 income/ expense | Yield/ rate (%) | Average balance | Interest1 income/ expense | Yield/ rate (%) | Average balance | Interest1income/ expense | Yield/ rate (%) | Average balance | Interest income/ expense | Yield/ rate (%) | Average balance | Interest income/ expense | Yield/ rate (%) | Average balance | Interest income/ expense | Yield/ rate (%) | ||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning deposits | $ | 75,092 | $ | 383 | 0.51 | $ | 124,874 | $ | 323 | 0.26 | $ | 88,089 | $ | 222 | 0.25 | $ | 16,618 | $ | 320 | 1.92 | $ | 50,658 | $ | 940 | 1.86 | $ | 79,927 | $ | 898 | 1.12 | ||||||||||||||||||||||||||||||||||
FHLB stock | 11,153 | 191 | 1.72 | 32,140 | 148 | 0.46 | 83,053 | 88 | 0.11 | 9,716 | 350 | 3.60 | 9,726 | 351 | 3.60 | 10,770 | 208 | 1.93 | ||||||||||||||||||||||||||||||||||||||||||||||
Securities purchased under resale agreements | — | — | — | — | — | — | 5,096 | 20 | 0.39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale investment securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | 934,469 | 18,592 | 1.99 | 687,215 | 14,649 | 2.13 | 525,949 | 11,336 | 2.16 | 1,406,564 | 31,178 | 2.22 | 1,503,036 | 35,862 | 2.39 | 1,265,240 | 27,291 | 2.16 | ||||||||||||||||||||||||||||||||||||||||||||||
Non-taxable | 717 | 28 | 3.87 | — | — | — | 11,600 | 429 | 3.69 | 27,512 | 1,360 | 4.94 | 17,485 | 771 | 4.41 | 15,427 | 655 | 4.24 | ||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale investment securities | 935,186 | 18,620 | 1.99 | 687,215 | 14,649 | 2.13 | 537,549 | 11,765 | 2.19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investment securities | 1,434,076 | 32,538 | 2.27 | 1,520,521 | 36,633 | 2.41 | 1,280,667 | 27,946 | 2.18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | 2,074,564 | 88,274 | 4.26 | 2,064,170 | 89,933 | 4.36 | 2,023,816 | 90,591 | 4.48 | 2,181,554 | 89,956 | 4.12 | 2,122,895 | 86,936 | 4.10 | 2,077,705 | 86,934 | 4.18 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 872,694 | 35,940 | 4.12 | 669,184 | 26,558 | 3.97 | 557,924 | 23,904 | 4.28 | 863,468 | 40,324 | 4.67 | 860,155 | 39,579 | 4.60 | 887,890 | 37,806 | 4.26 | ||||||||||||||||||||||||||||||||||||||||||||||
Home equity line of credit | 859,955 | 28,249 | 3.28 | 828,129 | 26,511 | 3.20 | 790,701 | 25,716 | 3.25 | 1,043,479 | 38,826 | 3.72 | 944,065 | 34,634 | 3.67 | 889,360 | 30,001 | 3.37 | ||||||||||||||||||||||||||||||||||||||||||||||
Residential land | 18,850 | 1,118 | 5.93 | 17,304 | 1,101 | 6.36 | 16,276 | 1,106 | 6.79 | 14,065 | 774 | 5.50 | 14,935 | 823 | 5.51 | 16,837 | 1,011 | 6.00 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 743,586 | 29,743 | 4.00 | 798,182 | 29,282 | 3.67 | 783,670 | 29,294 | 3.74 | 620,206 | 27,950 | 4.51 | 579,765 | 26,689 | 4.60 | 631,170 | 27,405 | 4.34 | ||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 149,287 | 16,450 | 11.02 | 119,267 | 11,397 | 9.56 | 110,440 | 8,730 | 7.90 | 270,340 | 35,864 | 13.27 | 240,414 | 31,802 | 13.23 | 205,334 | 24,098 | 11.74 | ||||||||||||||||||||||||||||||||||||||||||||||
Total loans 2,3 | 4,718,936 | 199,774 | 4.23 | 4,496,236 | 184,782 | 4.11 | 4,282,827 | 179,341 | 4.19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 5,740,367 | 218,968 | 3.81 | 5,340,465 | 199,902 | 3.74 | 4,996,614 | 191,436 | 3.83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans 1,2 | 4,993,112 | 233,694 | 4.68 | 4,762,229 | 220,463 | 4.63 | 4,708,296 | 207,255 | 4.40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets 3 | 6,453,522 | 266,902 | 4.14 | 6,343,134 | 258,387 | 4.07 | 6,079,660 | 236,307 | 3.89 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (54,338 | ) | (46,881 | ) | (42,242 | ) | (54,640 | ) | (53,593 | ) | (55,629 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-earning assets | 507,850 | 490,187 | 459,513 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-earning assets | 696,270 | 606,304 | 546,523 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 6,193,879 | $ | 5,783,771 | $ | 5,413,885 | $ | 7,095,152 | $ | 6,895,845 | $ | 6,570,554 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Shareholder’s Equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings | $ | 2,117,186 | 1,402 | 0.07 | $ | 1,980,151 | 1,257 | 0.06 | $ | 1,879,373 | 1,134 | 0.06 | $ | 2,340,671 | 1,904 | 0.08 | $ | 2,334,681 | 1,639 | 0.07 | $ | 2,278,396 | 1,567 | 0.07 | ||||||||||||||||||||||||||||||||||||||||
Interest-bearing checking | 839,339 | 173 | 0.02 | 782,811 | 139 | 0.02 | 738,651 | 126 | 0.02 | 1,044,315 | 1,298 | 0.12 | 1,006,839 | 706 | 0.07 | 902,678 | 238 | 0.03 | ||||||||||||||||||||||||||||||||||||||||||||||
Money market | 160,700 | 202 | 0.13 | 164,568 | 205 | 0.12 | 171,889 | 214 | 0.12 | 145,939 | 953 | 0.65 | 140,225 | 602 | 0.43 | 142,068 | 168 | 0.12 | ||||||||||||||||||||||||||||||||||||||||||||||
Time certificates | 565,135 | 5,390 | 0.95 | 449,179 | 3,747 | 0.83 | 434,934 | 3,603 | 0.83 | 810,749 | 12,675 | 1.56 | 789,926 | 11,044 | 1.40 | 696,799 | 7,687 | 1.10 | ||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 3,682,360 | 7,167 | 0.19 | 3,376,709 | 5,348 | 0.16 | 3,224,847 | 5,077 | 0.16 | 4,341,674 | 16,830 | 0.39 | 4,271,671 | 13,991 | 0.33 | 4,019,941 | 9,660 | 0.24 | ||||||||||||||||||||||||||||||||||||||||||||||
Advances from Federal Home Loan Bank | 101,597 | 3,160 | 3.11 | 100,438 | 3,146 | 3.13 | 100,389 | 3,146 | 3.13 | 33,652 | 843 | 2.50 | 41,855 | 845 | 2.02 | 79,374 | 2,245 | 2.83 | ||||||||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 169,730 | 2,428 | 1.43 | 219,351 | 2,832 | 1.29 | 155,012 | 2,585 | 1.67 | 79,647 | 767 | 0.96 | 99,162 | 703 | 0.71 | 97,535 | 251 | 0.26 | ||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 3,953,687 | 12,755 | 0.32 | 3,696,498 | 11,326 | 0.31 | 3,480,248 | 10,808 | 0.31 | 4,454,973 | 18,440 | 0.41 | 4,412,688 | 15,539 | 0.35 | 4,196,850 | 12,156 | 0.29 | ||||||||||||||||||||||||||||||||||||||||||||||
Non-interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | 1,559,132 | 1,426,962 | 1,285,964 | 1,848,336 | 1,763,331 | 1,672,780 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 102,302 | 109,386 | 113,401 | 131,691 | 108,976 | 102,789 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholder’s equity | 578,758 | 550,925 | 534,272 | 660,152 | 610,850 | 598,135 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities and Shareholder’s Equity | $ | 6,193,879 | $ | 5,783,771 | $ | 5,413,885 | $ | 7,095,152 | $ | 6,895,845 | $ | 6,570,554 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 206,213 | $ | 188,576 | $ | 180,628 | $ | 248,462 | $ | 242,848 | $ | 224,151 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (%)4 | 3.59 | 3.53 | 3.62 | 3.85 | 3.83 | 3.69 |
1 |
Includes loans held for sale, at lower of cost or fair value, of |
Includes recognition of net deferred loan fees of |
3 | For 2019, 2018 and 2017, the taxable-equivalent basis adjustments made to the table above were not material. |
4 | Defined as net interest income, on a fully taxable equivalent basis, as a percentage of average total interest-earning assets. |
2019 vs. 2018 | 2018 vs. 2017 | ||||||||||||||||||||||
(in thousands) | Rate | Volume | Total | Rate | Volume | Total | |||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest-earning deposits | $ | 31 | $ | (651 | ) | $ | (620 | ) | $ | 455 | $ | (413 | ) | $ | 42 | ||||||||
FHLB stock | — | (1 | ) | (1 | ) | 165 | (22 | ) | 143 | ||||||||||||||
Investment securities | |||||||||||||||||||||||
Taxable | (2,462 | ) | (2,222 | ) | (4,684 | ) | 3,100 | 5,471 | 8,571 | ||||||||||||||
Non-taxable | 102 | 487 | 589 | 27 | 89 | 116 | |||||||||||||||||
Total investment securities | (2,360 | ) | (1,735 | ) | (4,095 | ) | 3,127 | 5,560 | 8,687 | ||||||||||||||
Loans | |||||||||||||||||||||||
Residential 1-4 family | 454 | 2,566 | 3,020 | (1,768 | ) | 1,770 | 2 | ||||||||||||||||
Commercial real estate | 595 | 150 | 745 | 2,972 | (1,199 | ) | 1,773 | ||||||||||||||||
Home equity line of credit | 481 | 3,711 | 4,192 | 2,740 | 1,893 | 4,633 | |||||||||||||||||
Residential land | (1 | ) | (48 | ) | (49 | ) | (79 | ) | (109 | ) | (188 | ) | |||||||||||
Commercial | (539 | ) | 1,800 | 1,261 | 1,587 | (2,303 | ) | (716 | ) | ||||||||||||||
Consumer | 96 | 3,966 | 4,062 | 3,284 | 4,420 | 7,704 | |||||||||||||||||
Total loans | 1,086 | 12,145 | 13,231 | 8,736 | 4,472 | 13,208 | |||||||||||||||||
Total increase (decrease) in interest income | (1,243 | ) | 9,758 | 8,515 | 12,483 | 9,597 | 22,080 | ||||||||||||||||
Interest expense | |||||||||||||||||||||||
Savings | (261 | ) | (4 | ) | (265 | ) | — | (72 | ) | (72 | ) | ||||||||||||
Interest-bearing checking | (563 | ) | (29 | ) | (592 | ) | (431 | ) | (37 | ) | (468 | ) | |||||||||||
Money market | (325 | ) | (26 | ) | (351 | ) | (436 | ) | 2 | (434 | ) | ||||||||||||
Time certificates | (1,325 | ) | (306 | ) | (1,631 | ) | (2,253 | ) | (1,104 | ) | (3,357 | ) | |||||||||||
Advances from Federal Home Loan Bank | (181 | ) | 183 | 2 | 528 | 872 | 1,400 | ||||||||||||||||
Securities sold under agreements to repurchase | (219 | ) | 155 | (64 | ) | (448 | ) | (4 | ) | (452 | ) | ||||||||||||
Total decrease (increase) in interest expense | (2,874 | ) | (27 | ) | (2,901 | ) | (3,040 | ) | (343 | ) | (3,383 | ) | |||||||||||
Increase (decrease) in net interest income | $ | (4,117 | ) | $ | 9,731 | $ | 5,614 | $ | 9,443 | $ | 9,254 | $ | 18,697 |
December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||
(dollars in thousands) | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | ||||||||||||||||||||||||
Real estate: 1 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,178,135 | 42.6 | $ | 2,143,397 | 44.3 | $ | 2,118,047 | 45.3 | $ | 2,048,051 | 43.2 | $ | 2,069,665 | 44.8 | |||||||||||||||||||
Commercial real estate | 824,830 | 16.1 | 748,398 | 15.4 | 733,106 | 15.7 | 800,395 | 16.9 | 690,561 | 14.9 | ||||||||||||||||||||||||
Home equity line of credit | 1,092,125 | 21.3 | 978,237 | 20.2 | 913,052 | 19.6 | 863,163 | 18.2 | 846,294 | 18.3 | ||||||||||||||||||||||||
Residential land | 14,704 | 0.3 | 13,138 | 0.3 | 15,797 | 0.3 | 18,889 | 0.4 | 18,229 | 0.4 | ||||||||||||||||||||||||
Commercial construction | 70,605 | 1.4 | 92,264 | 1.9 | 108,273 | 2.3 | 126,768 | 2.7 | 100,796 | 2.2 | ||||||||||||||||||||||||
Residential construction | 11,670 | 0.2 | 14,307 | 0.3 | 14,910 | 0.3 | 16,080 | 0.3 | 14,089 | 0.3 | ||||||||||||||||||||||||
Total real estate | 4,192,069 | 81.9 | 3,989,741 | 82.4 | 3,903,185 | 83.5 | 3,873,346 | 81.7 | 3,739,634 | 80.9 | ||||||||||||||||||||||||
Commercial | 670,674 | 13.1 | 587,891 | 12.1 | 544,828 | 11.7 | 692,051 | 14.6 | 758,659 | 16.4 | ||||||||||||||||||||||||
Consumer | 257,921 | 5.0 | 266,002 | 5.5 | 223,564 | 4.8 | 178,222 | 3.7 | 123,775 | 2.7 | ||||||||||||||||||||||||
Total loans | 5,120,664 | 100.0 | 4,843,634 | 100.0 | 4,671,577 | 100.0 | 4,743,619 | 100.0 | 4,622,068 | 100.0 | ||||||||||||||||||||||||
Less: Deferred fees and discounts | 512 | (613 | ) | (809 | ) | (4,926 | ) | (6,249 | ) | |||||||||||||||||||||||||
Allowance for loan losses | (53,355 | ) | (52,119 | ) | (53,637 | ) | (55,533 | ) | (50,038 | ) | ||||||||||||||||||||||||
Total loans, net | $ | 5,067,821 | $ | 4,790,902 | $ | 4,617,131 | $ | 4,683,160 | $ | 4,565,781 |
1 | Includes renegotiated loans. |
December 31 | 2019 | ||||||||||||||
Due | In 1 year or less | After 1 year through 5 years | After 5 years | Total | |||||||||||
(in millions) | |||||||||||||||
Commercial – Fixed | $ | 73 | $ | 135 | $ | 37 | $ | 245 | |||||||
Commercial – Adjustable | 163 | 247 | 16 | 426 | |||||||||||
Total commercial | 236 | 382 | 53 | 671 | |||||||||||
Commercial construction – Fixed | — | — | — | — | |||||||||||
Commercial construction – Adjustable | 26 | 27 | 18 | 71 | |||||||||||
Total commercial construction | 26 | 27 | 18 | 71 | |||||||||||
Residential construction – Fixed | 12 | — | — | 12 | |||||||||||
Residential construction – Adjustable | — | — | — | — | |||||||||||
Total residential construction | 12 | — | — | 12 | |||||||||||
Total loans – Fixed | 85 | 135 | 37 | 257 | |||||||||||
Total loans – Adjustable | 189 | 274 | 34 | 497 | |||||||||||
Total loans | $ | 274 | $ | 409 | $ | 71 | $ | 754 |
December 31 | 2016 | 2015 | 2019 | 2018 | ||||||||||||
Outstanding balance (in thousands) | $ | 863,163 | $ | 846,294 | ||||||||||||
Outstanding balance of home equity loans (in thousands) | $ | 1,092,125 | $ | 978,237 | ||||||||||||
Percent of portfolio in first lien position | 45.1 | % | 42.9 | % | 53.7 | % | 49.2 | % | ||||||||
Net charge-off ratio | 0.01 | % | 0.02 | % | 0.01 | % | 0.01 | % | ||||||||
Delinquency ratio | 0.35 | % | 0.25 | % | 0.27 | % | 0.46 | % |
End of draw period – interest only | Current | |||||||||||||||||||||||
December 31, 2019 | Total | Interest only | 2019-2020 | 2021-2023 | Thereafter | amortizing | ||||||||||||||||||
Outstanding balance (in thousands) | $ | 1,092,125 | $ | 814,174 | $ | 42,694 | $ | 118,153 | $ | 653,327 | $ | 277,951 | ||||||||||||
% of total | 100 | % | 75 | % | 4 | % | 11 | % | 60 | % | 25 | % |
End of draw period – interest only | Current | |||||||||||||||||||||||
December 31, 2016 | Total | Interest only | 2017 | 2018-2020 | Thereafter | amortizing | ||||||||||||||||||
Outstanding balance (in thousands) | $ | 863,163 | $ | 678,348 | $ | 8,524 | $ | 122,966 | $ | 546,858 | $ | 184,815 | ||||||||||||
% of total | 100 | % | 79 | % | 1 | % | 14 | % | 64 | % | 21 | % |
December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Nonaccrual loans— | |||||||||||||||||||
Real estate: | |||||||||||||||||||
Residential 1-4 family | $ | 11,395 | $ | 12,037 | $ | 12,598 | $ | 11,154 | $ | 20,554 | |||||||||
Commercial real estate | 195 | — | — | 223 | 1,188 | ||||||||||||||
Home equity line of credit | 6,638 | 6,348 | 4,466 | 3,080 | 2,254 | ||||||||||||||
Residential land | 448 | 436 | 841 | 878 | 970 | ||||||||||||||
Commercial construction | — | — | — | — | |||||||||||||||
Residential construction | — | — | — | — | |||||||||||||||
Total real estate | 18,676 | 18,821 | 17,905 | 15,335 | 24,966 | ||||||||||||||
Commercial | 5,947 | 4,278 | 3,069 | 6,708 | 20,174 | ||||||||||||||
Consumer | 5,113 | 4,196 | 2,617 | 1,282 | 895 | ||||||||||||||
Total nonaccrual loans | $ | 29,736 | $ | 27,295 | $ | 23,591 | $ | 23,325 | $ | 46,035 | |||||||||
Troubled debt restructured loans not included above— | |||||||||||||||||||
Real estate: | |||||||||||||||||||
Residential 1-4 family | $ | 9,869 | $ | 10,194 | $ | 10,982 | $ | 14,450 | $ | 13,962 | |||||||||
Commercial real estate | 853 | 915 | 1,016 | 1,346 | — | ||||||||||||||
Home equity line of credit | 10,376 | 11,597 | 6,584 | 4,934 | 2,467 | ||||||||||||||
Residential land | 2,644 | 1,622 | 425 | 2,751 | 4,713 | ||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Total real estate | 23,742 | 24,328 | 19,007 | 23,481 | 21,142 | ||||||||||||||
Commercial | 2,614 | 1,527 | 1,741 | 14,146 | 1,104 | ||||||||||||||
Consumer | 57 | 62 | 66 | 10 | — | ||||||||||||||
Total troubled debt restructured loans | $ | 26,413 | $ | 25,917 | $ | 20,814 | $ | 37,637 | $ | 22,246 |
(dollars in millions) | Year ended December 31, 2019 | ||
Gross amount of interest income that would have been recorded if the loans had been current in accordance with original contractual terms, and had been outstanding throughout the period or since origination, if held for only part of the period 1 | $ | 3 | |
Interest income actually recognized | 2 | ||
Total interest income foregone | $ | 1 |
1 | Based on the contractual rate that was being charged at the time the loan was restructured or placed on nonaccrual status. |
(dollars in thousands) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||
Allowance for loan losses, January 1 | $ | 52,119 | $ | 53,637 | $ | 55,533 | $ | 50,038 | $ | 45,618 | |||||||||
Provision for loan losses | 23,480 | 14,745 | 10,901 | 16,763 | 6,275 | ||||||||||||||
Charge-offs | |||||||||||||||||||
Real estate: | |||||||||||||||||||
Residential 1-4 family | 26 | 128 | 826 | 639 | 356 | ||||||||||||||
Commercial real estate | — | — | — | — | — | ||||||||||||||
Home equity line of credit | 144 | 353 | 14 | 112 | 205 | ||||||||||||||
Residential land | 4 | 18 | 210 | 138 | — | ||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Total real estate | 174 | 499 | 1,050 | 889 | 561 | ||||||||||||||
Commercial | 6,811 | 2,722 | 4,006 | 5,943 | 1,074 | ||||||||||||||
Consumer | 21,677 | 17,296 | 11,757 | 7,413 | 4,791 | ||||||||||||||
Total charge-offs | 28,662 | 20,517 | 16,813 | 14,245 | 6,426 | ||||||||||||||
Recoveries | |||||||||||||||||||
Real estate: | |||||||||||||||||||
Residential 1-4 family | 854 | 74 | 157 | 421 | 226 | ||||||||||||||
Commercial real estate | — | — | — | — | — | ||||||||||||||
Home equity line of credit | 17 | 257 | 308 | 59 | 80 | ||||||||||||||
Residential land | 229 | 179 | 482 | 461 | 507 | ||||||||||||||
Commercial construction | — | — | — | — | — | ||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Total real estate | 1,100 | 510 | 947 | 941 | 813 | ||||||||||||||
Commercial | 2,351 | 2,136 | 1,852 | 1,093 | 2,773 | ||||||||||||||
Consumer | 2,967 | 1,608 | 1,217 | 943 | 985 | ||||||||||||||
Total recoveries | 6,418 | 4,254 | 4,016 | 2,977 | 4,571 | ||||||||||||||
Net charge-offs | 22,244 | 16,263 | 12,797 | 11,268 | 1,855 | ||||||||||||||
Allowance for loan losses, December 31 | $ | 53,355 | $ | 52,119 | $ | 53,637 | $ | 55,533 | $ | 50,038 | |||||||||
Ratio of allowance for loan losses to loans held for investment | 1.04 | % | 1.08 | % | 1.15 | % | 1.17 | % | 1.08 | % | |||||||||
Ratio of provision for loan losses during the year to average total loans | 0.47 | % | 0.31 | % | 0.23 | % | 0.36 | % | 0.14 | % | |||||||||
Ratio of net charge-offs during the year to average total loans | 0.45 | % | 0.34 | % | 0.27 | % | 0.24 | % | 0.04 | % |
December 31 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||
(dollars in thousands) | Allow-ance balance | Allowance to loan receivable % | Loan receivable % of total | Allow-ance balance | Allowance to loan receivable % | Loan receivable % of total | Allow-ance balance | Allowance to loan receivable % | Loan receivable % of total | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,380 | 0.11 | 42.6 | $ | 1,976 | 0.09 | 44.3 | $ | 2,902 | 0.14 | 45.3 | |||||||||||||||||
Commercial real estate | 15,053 | 1.82 | 16.1 | 14,505 | 1.94 | 15.4 | 15,796 | 2.15 | 15.7 | ||||||||||||||||||||
Home equity line of credit | 6,922 | 0.63 | 21.3 | 6,371 | 0.65 | 20.2 | 7,522 | 0.82 | 19.6 | ||||||||||||||||||||
Residential land | 449 | 3.05 | 0.3 | 479 | 3.65 | 0.3 | 896 | 5.67 | 0.3 | ||||||||||||||||||||
Commercial construction | 2,097 | 2.97 | 1.4 | 2,790 | 3.02 | 1.9 | 4,671 | 4.31 | 2.3 | ||||||||||||||||||||
Residential construction | 3 | 0.03 | 0.2 | 4 | 0.03 | 0.3 | 12 | 0.08 | 0.3 | ||||||||||||||||||||
Total real estate | 26,904 | 0.64 | 81.9 | 26,125 | 0.65 | 82.4 | 31,799 | 0.81 | 83.5 | ||||||||||||||||||||
Commercial | 10,245 | 1.53 | 13.1 | 9,225 | 1.57 | 12.1 | 10,851 | 1.99 | 11.7 | ||||||||||||||||||||
Consumer | 16,206 | 6.28 | 5.0 | 16,769 | 6.30 | 5.5 | 10,987 | 4.91 | 4.8 | ||||||||||||||||||||
Total allowance for loan losses | $ | 53,355 | 1.04 | 100.0 | $ | 52,119 | 1.08 | 100.0 | $ | 53,637 | 1.15 | 100.0 |
December 31 | 2016 | 2015 | |||||||||||||||||
(dollars in thousands) | Allowance balance | Allowance to loan receivable % | Loan receivable % of total | Allowance balance | Allowance to loan receivable % | Loan receivable % of total | |||||||||||||
Real estate: | |||||||||||||||||||
Residential 1-4 family | $ | 2,873 | 0.14 | 43.2 | $ | 4,186 | 0.20 | 44.8 | |||||||||||
Commercial real estate | 16,004 | 2.00 | 16.9 | 11,342 | 1.64 | 14.9 | |||||||||||||
Home equity line of credit | 5,039 | 0.58 | 18.2 | 7,260 | 0.86 | 18.3 | |||||||||||||
Residential land | 1,738 | 9.20 | 0.4 | 1,671 | 9.17 | 0.4 | |||||||||||||
Commercial construction | 6,449 | 5.09 | 2.7 | 4,461 | 4.43 | 2.2 | |||||||||||||
Residential construction | 12 | 0.07 | 0.3 | 13 | 0.09 | 0.3 | |||||||||||||
Total real estate | 32,115 | 0.83 | 81.7 | 28,933 | 0.77 | 80.9 | |||||||||||||
Commercial | 16,618 | 2.40 | 14.6 | 17,208 | 2.27 | 16.4 | |||||||||||||
Consumer | 6,800 | 3.82 | 3.7 | 3,897 | 3.15 | 2.7 | |||||||||||||
Total allowance for loan losses | $ | 55,533 | 1.17 | 100.0 | $ | 50,038 | 1.08 | 100.0 |
December 31 | 2016 | 2015 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
(dollars in thousands) | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | Balance | % of total | |||||||||||||||||||||||||
U.S. Treasury and federal agency obligations | $ | 192,281 | 18 | % | $ | 212,959 | 26 | % | $ | 117,787 | 9 | % | $ | 154,349 | 10 | % | $ | 184,298 | 13 | % | |||||||||||||||
Mortgage-related securities — FNMA, FHLMC and GNMA | 897,474 | 81 | 607,689 | 74 | |||||||||||||||||||||||||||||||
Mortgage revenue bond | 15,427 | 1 | — | — | |||||||||||||||||||||||||||||||
Total available-for-sale investment securities | $ | 1,105,182 | 100 | % | $ | 820,648 | 100 | % | |||||||||||||||||||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,165,836 | 85 | 1,303,291 | 85 | 1,245,988 | 86 | |||||||||||||||||||||||||||||
Corporate bonds | 60,057 | 4 | 49,132 | 3 | — | — | |||||||||||||||||||||||||||||
Mortgage revenue bonds | 28,597 | 2 | 23,636 | 2 | 15,427 | 1 | |||||||||||||||||||||||||||||
Total investment securities | $ | 1,372,277 | 100 | % | $ | 1,530,408 | 100 | % | $ | 1,445,713 | 100 | % |
(dollars in millions) | In 1 year or less | After 1 year through 5 years | After 5 years through 10 years | After 10 years | Mortgage-backed securities | Total1 | |||||||||||||||||
U.S. Treasury and federal agency obligations | $ | 47 | $ | 41 | $ | 29 | $ | 117 | |||||||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,164 | 1,164 | |||||||||||||||||||||
Corporate bonds | 35 | 24 | 59 | ||||||||||||||||||||
Mortgage revenue bonds2 | 13 | 16 | 29 | ||||||||||||||||||||
$ | 60 | $ | 76 | $ | 53 | $ | 16 | $ | 1,164 | $ | 1,369 | ||||||||||||
Weighted average yield | 2.26 | % | 2.75 | % | 2.44 | % | 3.17 | % | 2.44 | % | 2.54 | % |
1 | As of December 31, 2019, no investment exceeded 10% of ASB’s shareholder’s equity. |
2 | Weighted average yield on the mortgage revenue bonds is computed on a tax equivalent basis using a federal statutory tax rate of 21%. |
Years ended December 31 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||
(dollars in thousands) | Average balance | % of total interest-bearing deposits | Weighted average rate % | Average balance | % of total interest-bearing deposits | Weighted average rate % | Average balance | % of total interest-bearing deposits | Weighted average rate % | ||||||||||||||||||||
Interest-bearing deposit liabilities | |||||||||||||||||||||||||||||
Savings | $ | 2,340,671 | 53.9 | % | 0.08 | % | $ | 2,334,681 | 54.6 | % | 0.07 | % | $ | 2,278,396 | 56.7 | % | 0.07 | % | |||||||||||
Checking | 1,044,315 | 24.0 | 0.12 | 1,006,839 | 23.6 | 0.07 | 902,678 | 22.5 | 0.03 | ||||||||||||||||||||
Money market | 145,939 | 3.4 | 0.65 | 140,225 | 3.3 | 0.43 | 142,068 | 3.5 | 0.12 | ||||||||||||||||||||
Certificate | 810,749 | 18.7 | 1.56 | 789,926 | 18.5 | 1.40 | 696,799 | 17.3 | 1.10 | ||||||||||||||||||||
Total interest-bearing deposit liabilities | $ | 4,341,674 | 100.0 | % | 0.39 | % | $ | 4,271,671 | 100.0 | % | 0.33 | % | $ | 4,019,941 | 100.0 | % | 0.24 | % | |||||||||||
Total noninterest-bearing demand deposit liabilities | 1,848,336 | 1,763,331 | 1,672,780 | ||||||||||||||||||||||||||
Total deposit liabilities | $ | 6,190,010 | $ | 6,035,002 | $ | 5,692,721 |
(in thousands) | Amount | ||
Three months or less | $ | 204,100 | |
Greater than three months through six months | 72,436 | ||
Greater than six months through twelve months | 64,370 | ||
Greater than twelve months | 115,604 | ||
$ | 456,510 |
Effective dates | 1/1/2015 | 1/1/2016 | 1/1/2017 | 1/1/2018 | 1/1/2019 | ||||||||||
Capital conservation buffer | 0.625 | % | 1.25 | % | 1.875 | % | 2.50 | % | |||||||
Common equity Tier 1 ratio + conservation buffer | 4.50 | % | 5.125 | % | 5.75 | % | 6.375 | % | 7.00 | % | |||||
Tier 1 capital ratio + conservation buffer | 6.00 | % | 6.625 | % | 7.25 | % | 7.875 | % | 8.50 | % | |||||
Total capital ratio + conservation buffer | 8.00 | % | 8.625 | % | 9.25 | % | 9.875 | % | 10.50 | % | |||||
Tier 1 leverage ratio | 4.00 | % | 4.00 | % | 4.00 | % | 4.00 | % | 4.00 | % | |||||
Countercyclical capital buffer — not applicable to ASB | 0.625 | % | 1.25 | % | 1.875 | % | 2.50 | % |
December 31 | 2016 | % change | 2015 | % change | 2019 | % change | 2018 | % change | ||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||
Total assets | $ | 6,421 | 7 | $ | 6,015 | 8 | $ | 7,233 | 3 | $ | 7,028 | 3 | ||||||||||||||
Available-for-sale investment securities | 1,105 | 35 | 821 | 49 | ||||||||||||||||||||||
Loans receivable held for investment, net | 4,683 | 3 | 4,566 | 4 | ||||||||||||||||||||||
Investment securities | 1,372 | (10 | ) | 1,530 | 6 | |||||||||||||||||||||
Loans held for investment, net | 5,068 | 6 | 4,791 | 4 | ||||||||||||||||||||||
Deposit liabilities | 5,549 | 10 | 5,025 | 9 | 6,272 | 2 | 6,159 | 5 | ||||||||||||||||||
Other bank borrowings | 193 | (41 | ) | 329 | 13 | 115 | 5 | 110 | (42 | ) |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Bank interest rate risk |
Change in NII (gradual change in interest rates) | Change in EVE (instantaneous change in interest rates) | Change in NII (gradual change in interest rates) | Change in EVE (instantaneous change in interest rates) | |||||||||||||||||||||
Change in interest rates (basis points) | December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||||||
+300 | 1.9 | % | 1.6 | % | (8.0 | )% | (9.3 | )% | 2.8 | % | 2.5 | % | 15.3 | % | 10.0 | % | ||||||||
+200 | 0.8 | 0.6 | (4.6 | ) | (5.3 | ) | 2.1 | 1.9 | 12.2 | 8.1 | ||||||||||||||
+100 | — | (0.1 | ) | (1.6 | ) | (1.9 | ) | 1.3 | 1.1 | 7.5 | 5.1 | |||||||||||||
-100 | (0.5 | ) | (0.5 | ) | (1.6 | ) | (1.2 | ) | (2.0 | ) | (2.3 | ) | (12.7 | ) | (11.0 | ) |
Other than bank interest rate risk |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Index to Consolidated Financial Statements | Page |
HEI | |
Consolidated Statements of Income for the years ended December 31, | |
Consolidated Statements of Comprehensive Income for the years ended December 31, | |
Consolidated Balance Sheets at December 31, | |
Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, | |
Consolidated Statements of Cash Flows for the years ended December 31, | |
Hawaiian Electric | |
Consolidated Statements of Income for the years ended December 31, | |
Consolidated Statements of Comprehensive Income for the years ended December 31, | |
Consolidated Balance Sheets at December 31, | |
Consolidated Statements of Capitalization at December 31, | |
Consolidated Statements of Changes in Common Stock Equity for the years ended December 31, | |
Consolidated Statements of Cash Flows for the years ended December 31, | |
Notes to Consolidated Financial Statements |
Report of Independent Registered Public Accounting Firm |
• | For regulatory matters in process, we inspected the Company’s filings with the PUC and the filings with the PUC by intervenors that may impact the Company’s future rates, for any evidence that might contradict management’s assertions. |
Report of Independent Registered Public Accounting Firm |
Consolidated Statements of Income |
Years ended December 31 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||
Electric utility | $ | 2,094,368 | $ | 2,335,166 | $ | 2,987,323 | $ | 2,545,942 | $ | 2,546,525 | $ | 2,257,566 | ||||||||||
Bank | 285,924 | 267,733 | 252,497 | 328,570 | 314,275 | 297,640 | ||||||||||||||||
Other | 362 | 83 | (278 | ) | 89 | 49 | 419 | |||||||||||||||
Total revenues | 2,380,654 | 2,602,982 | 3,239,542 | 2,874,601 | 2,860,849 | 2,555,625 | ||||||||||||||||
Expenses | ||||||||||||||||||||||
Electric utility | 1,809,900 | 2,061,050 | 2,711,555 | 2,291,564 | 2,304,864 | 1,994,042 | ||||||||||||||||
Bank | 198,572 | 183,921 | 173,202 | |||||||||||||||||||
Bank (includes $10.8 million gain on sales of properties in 2019) | 217,008 | 206,040 | 198,104 | |||||||||||||||||||
Other | 24,007 | 35,458 | 22,185 | 17,355 | 16,589 | 17,246 | ||||||||||||||||
Total expenses | 2,032,479 | 2,280,429 | 2,906,942 | 2,525,927 | 2,527,493 | 2,209,392 | ||||||||||||||||
Operating income (loss) | ||||||||||||||||||||||
Electric utility | 284,468 | 274,116 | 275,768 | 254,378 | 241,661 | 263,524 | ||||||||||||||||
Bank | 87,352 | 83,812 | 79,295 | 111,562 | 108,235 | 99,536 | ||||||||||||||||
Other | (23,645 | ) | (35,375 | ) | (22,463 | ) | (17,266 | ) | (16,540 | ) | (16,827 | ) | ||||||||||
Total operating income | 348,175 | 322,553 | 332,600 | 348,674 | 333,356 | 346,233 | ||||||||||||||||
Merger termination fee | 90,000 | — | — | |||||||||||||||||||
Retirement defined benefits expense—other than service costs | (2,806 | ) | (5,962 | ) | (7,942 | ) | ||||||||||||||||
Interest expense, net – other than on deposit liabilities and other bank borrowings | (75,803 | ) | (77,150 | ) | (76,352 | ) | (90,899 | ) | (88,677 | ) | (78,972 | ) | ||||||||||
Allowance for borrowed funds used during construction | 3,144 | 2,457 | 2,579 | 4,453 | 4,867 | 4,778 | ||||||||||||||||
Allowance for equity funds used during construction | 8,325 | 6,928 | 6,771 | 11,987 | 10,877 | 12,483 | ||||||||||||||||
Income before income taxes | 373,841 | 254,788 | 265,598 | 271,409 | 254,461 | 276,580 | ||||||||||||||||
Income taxes | 123,695 | 93,021 | 95,579 | 51,637 | 50,797 | 109,393 | ||||||||||||||||
Net income | 250,146 | 161,767 | 170,019 | 219,772 | 203,664 | 167,187 | ||||||||||||||||
Preferred stock dividends of subsidiaries | 1,890 | 1,890 | 1,890 | 1,890 | 1,890 | 1,890 | ||||||||||||||||
Net income for common stock | $ | 248,256 | $ | 159,877 | $ | 168,129 | $ | 217,882 | $ | 201,774 | $ | 165,297 | ||||||||||
Basic earnings per common share | $ | 2.30 | $ | 1.50 | $ | 1.65 | $ | 2.00 | $ | 1.85 | $ | 1.52 | ||||||||||
Diluted earnings per common share | $ | 2.29 | $ | 1.50 | $ | 1.63 | $ | 1.99 | $ | 1.85 | $ | 1.52 | ||||||||||
Dividends per common share | $ | 1.24 | $ | 1.24 | $ | 1.24 | ||||||||||||||||
Weighted-average number of common shares outstanding | 108,102 | 106,418 | 101,968 | 108,949 | 108,855 | 108,749 | ||||||||||||||||
Net effect of potentially dilutive shares | 207 | 303 | 969 | 458 | 291 | 184 | ||||||||||||||||
Adjusted weighted-average shares | 108,309 | 106,721 | 102,937 | |||||||||||||||||||
Weighted-average shares assuming dilution | 109,407 | 109,146 | 108,933 |
Consolidated Statements of Comprehensive Income |
Years ended December 31 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Net income for common stock | $ | 248,256 | $ | 159,877 | $ | 168,129 | $ | 217,882 | $ | 201,774 | $ | 165,297 | ||||||||||
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 | ) | |||||||||||||||||
Net unrealized gains (losses) on available-for sale investment securities arising during the period, net of (taxes) benefits of $(10,024), $3,468 and $2,886 for 2019, 2018 and 2017, respectively | 27,382 | (9,472 | ) | (4,370 | ) | |||||||||||||||||
Reclassification adjustment for net realized gains included in net income, net of taxes of $175, nil and nil for 2019, 2018 and 2017, respectively | (478 | ) | — | — | ||||||||||||||||||
Derivatives qualified as cash flow hedges: | ||||||||||||||||||||||
Effective portion of foreign currency hedge net unrealized losses arising during the period, net of tax benefits of $179, nil and nil for 2016, 2015 and 2014, respectively | (281 | ) | — | — | ||||||||||||||||||
Less: reclassification adjustment to net income, net of (taxes) benefit of $(76), $150 and $150 for 2016, 2015 and 2014, respectively | (119 | ) | 235 | 236 | ||||||||||||||||||
Unrealized interest rate hedging losses, net of tax benefit of $409, $151 and nil for 2019, 2018 and 2017, respectively | (1,177 | ) | (436 | ) | — | |||||||||||||||||
Reclassification adjustment to net income, net of tax benefits of nil, nil and $289 for 2019, 2018 and 2017, respectively | — | — | 454 | |||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $27,703, $(3,753) and $149,364 for 2016, 2015 and 2014, respectively | (43,510 | ) | 5,889 | (234,166 | ) | |||||||||||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $9,267, $14,344 and $7,245 for 2016, 2015 and 2014, respectively | 14,518 | 22,465 | 11,344 | |||||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | 28,584 | (25,139 | ) | 207,833 | ||||||||||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(3,892), $9,810 and $(41,129) for 2019, 2018 and 2017, respectively | 10,914 | (28,101 | ) | 65,531 | ||||||||||||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $3,512, $7,317 and $10,041 for 2019, 2018 and 2017, respectively | 10,107 | 21,015 | 15,737 | |||||||||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(5,610), $2,887 and $(49,523) for 2019, 2018 and 2017, respectively | (16,177 | ) | 8,325 | (78,724 | ) | |||||||||||||||||
Other comprehensive income (loss), net of taxes | (6,867 | ) | 1,116 | (10,628 | ) | 30,571 | (8,669 | ) | (1,372 | ) | ||||||||||||
Comprehensive income attributable to Hawaiian Electric Industries, Inc. | $ | 241,389 | $ | 160,993 | $ | 157,501 | $ | 248,453 | $ | 193,105 | $ | 163,925 |
Consolidated Balance Sheets |
December 31 | 2016 | 2015 | 2019 | 2018 | ||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 278,452 | $ | 300,478 | $ | 196,813 | $ | 169,208 | ||||||||||||||||||||||
Restricted cash | 30,872 | — | ||||||||||||||||||||||||||||
Accounts receivable and unbilled revenues, net | 237,950 | 242,766 | 300,794 | 325,672 | ||||||||||||||||||||||||||
Available-for-sale investment securities, at fair value | 1,105,182 | 820,648 | 1,232,826 | 1,388,533 | ||||||||||||||||||||||||||
Held-to-maturity investment securities, at amortized cost | 139,451 | 141,875 | ||||||||||||||||||||||||||||
Stock in Federal Home Loan Bank, at cost | 11,218 | 10,678 | 8,434 | 9,958 | ||||||||||||||||||||||||||
Loans receivable held for investment, net | 4,683,160 | 4,565,781 | ||||||||||||||||||||||||||||
Loans held for investment, net | 5,067,821 | 4,790,902 | ||||||||||||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 18,817 | 4,631 | 12,286 | 1,805 | ||||||||||||||||||||||||||
Property, plant and equipment, net | ||||||||||||||||||||||||||||||
Land | $ | 97,423 | $ | 90,890 | $ | 100,161 | $ | 102,925 | ||||||||||||||||||||||
Plant and equipment | 6,727,935 | 6,444,214 | 7,545,083 | 7,118,709 | ||||||||||||||||||||||||||
Construction in progress | 222,455 | 181,873 | 229,953 | 267,714 | ||||||||||||||||||||||||||
7,047,813 | 6,716,977 | 7,875,197 | 7,489,348 | |||||||||||||||||||||||||||
Less – accumulated depreciation | (2,444,348 | ) | 4,603,465 | (2,339,319 | ) | 4,377,658 | (2,765,569 | ) | 5,109,628 | (2,659,230 | ) | 4,830,118 | ||||||||||||||||||
Operating lease right-of-use assets | 199,171 | — | ||||||||||||||||||||||||||||
Regulatory assets | 957,451 | 896,731 | 715,080 | 833,426 | ||||||||||||||||||||||||||
Other | 447,621 | 480,457 | 649,885 | 530,364 | ||||||||||||||||||||||||||
Goodwill | 82,190 | 82,190 | 82,190 | 82,190 | ||||||||||||||||||||||||||
Total assets | $ | 12,425,506 | $ | 11,782,018 | $ | 13,745,251 | $ | 13,104,051 | ||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Accounts payable | $ | 143,279 | $ | 138,523 | $ | 220,633 | $ | 214,773 | ||||||||||||||||||||||
Interest and dividends payable | 25,225 | 26,042 | 24,941 | 28,254 | ||||||||||||||||||||||||||
Deposit liabilities | 5,548,929 | 5,025,254 | 6,271,902 | 6,158,852 | ||||||||||||||||||||||||||
Short-term borrowings—other than bank | — | 103,063 | 185,710 | 73,992 | ||||||||||||||||||||||||||
Other bank borrowings | 192,618 | 328,582 | 115,110 | 110,040 | ||||||||||||||||||||||||||
Long-term debt, net—other than bank | 1,619,019 | 1,578,368 | 1,964,365 | 1,879,641 | ||||||||||||||||||||||||||
Deferred income taxes | 728,806 | 680,877 | 379,324 | 372,518 | ||||||||||||||||||||||||||
Operating lease liabilities | 199,571 | — | ||||||||||||||||||||||||||||
Regulatory liabilities | 410,693 | 371,543 | 972,310 | 950,236 | ||||||||||||||||||||||||||
Contributions in aid of construction | 543,525 | 506,087 | ||||||||||||||||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 638,854 | 589,918 | 513,287 | 538,384 | ||||||||||||||||||||||||||
Other | 473,512 | 471,828 | 583,545 | 580,788 | ||||||||||||||||||||||||||
Total liabilities | 10,324,460 | 9,820,085 | 11,430,698 | 10,907,478 | ||||||||||||||||||||||||||
Preferred stock of subsidiaries - not subject to mandatory redemption | 34,293 | 34,293 | 34,293 | 34,293 | ||||||||||||||||||||||||||
Commitments and contingencies (Notes 4 and 5) | ||||||||||||||||||||||||||||||
Commitments and contingencies (Notes 3 and 4) | ||||||||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||||||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | — | — | — | — | ||||||||||||||||||||||||||
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 108,583,413 shares and 107,460,406 shares at December 31, 2016 and 2015, respectively | 1,660,910 | 1,629,136 | ||||||||||||||||||||||||||||
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 108,973,328 shares and 108,879,245 shares at December 31, 2019 and 2018, respectively | 1,678,257 | 1,669,267 | ||||||||||||||||||||||||||||
Retained earnings | 438,972 | 324,766 | 622,042 | 543,623 | ||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax benefits | ||||||||||||||||||||||||||||||
Net unrealized losses on securities | $ | (7,931 | ) | $ | (1,872 | ) | ||||||||||||||||||||||||
Net unrealized gains (losses) on securities | $ | 2,481 | $ | (24,423 | ) | |||||||||||||||||||||||||
Unrealized losses on derivatives | (454 | ) | (54 | ) | (1,613 | ) | (436 | ) | ||||||||||||||||||||||
Retirement benefit plans | (24,744 | ) | (33,129 | ) | (24,336 | ) | (26,262 | ) | (20,907 | ) | (20,039 | ) | (25,751 | ) | (50,610 | ) | ||||||||||||||
Total shareholders’ equity | 2,066,753 | 1,927,640 | 2,280,260 | 2,162,280 | ||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 12,425,506 | $ | 11,782,018 | $ | 13,745,251 | $ | 13,104,051 |
Consolidated Statements of Changes in Shareholders’ Equity |
Common stock | Retained | Accumulated other comprehensive | Common stock | Retained earnings | Accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | Shares | Amount | earnings | income (loss) | Total | Shares | Amount | Total | ||||||||||||||||||||||||||||
Balance, December 31, 2013 | 101,260 | $ | 1,488,126 | $ | 255,030 | $ | (16,750 | ) | $ | 1,726,406 | ||||||||||||||||||||||||||
Balance, December 31, 2016 | 108,583 | $ | 1,660,910 | $ | 438,972 | $ | (33,129 | ) | $ | 2,066,753 | ||||||||||||||||||||||||||
Net income for common stock | — | — | 165,297 | — | 165,297 | |||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | (1,372 | ) | (1,372 | ) | |||||||||||||||||||||||||||||
Reclass of AOCI for tax rate reduction impact | — | — | 7,440 | (7,440 | ) | — | ||||||||||||||||||||||||||||||
Issuance of common stock: | ||||||||||||||||||||||||||||||||||||
Share-based plans | 205 | 4,664 | — | — | 4,664 | |||||||||||||||||||||||||||||||
Share-based expenses and other, net | — | (3,083 | ) | — | — | (3,083 | ) | |||||||||||||||||||||||||||||
Common stock dividends ($1.24 per share) | — | — | (134,873 | ) | — | (134,873 | ) | |||||||||||||||||||||||||||||
Balance, December 31, 2017 | 108,788 | 1,662,491 | 476,836 | (41,941 | ) | 2,097,386 | ||||||||||||||||||||||||||||||
Net income for common stock | — | — | 168,129 | — | 168,129 | — | — | 201,774 | — | 201,774 | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | (10,628 | ) | (10,628 | ) | — | — | — | (8,669 | ) | (8,669 | ) | ||||||||||||||||||||||
Issuance of common stock: | ||||||||||||||||||||||||||||||||||||
Partial settlement of equity forward | 1,000 | 24,873 | — | — | 24,873 | |||||||||||||||||||||||||||||||
Dividend reinvestment and stock purchase plan | 95 | 2,461 | — | — | 2,461 | |||||||||||||||||||||||||||||||
Retirement savings and other plans | 210 | 6,816 | — | — | 6,816 | |||||||||||||||||||||||||||||||
Expenses and other, net | — | (979 | ) | — | — | (979 | ) | |||||||||||||||||||||||||||||
Share-based plans | 91 | 2,650 | — | — | 2,650 | |||||||||||||||||||||||||||||||
Share-based expenses and other, net | — | 4,126 | — | — | 4,126 | |||||||||||||||||||||||||||||||
Common stock dividends ($1.24 per share) | — | — | (126,505 | ) | — | (126,505 | ) | — | — | (134,987 | ) | — | (134,987 | ) | ||||||||||||||||||||||
Balance, December 31, 2014 | 102,565 | 1,521,297 | 296,654 | (27,378 | ) | 1,790,573 | ||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 108,879 | 1,669,267 | 543,623 | (50,610 | ) | 2,162,280 | ||||||||||||||||||||||||||||||
Net income for common stock | — | — | 159,877 | — | 159,877 | — | — | 217,882 | — | 217,882 | ||||||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | 1,116 | 1,116 | — | — | — | 30,571 | 30,571 | ||||||||||||||||||||||||||
Issuance of common stock: | ||||||||||||||||||||||||||||||||||||
Partial settlement of equity forward | 4,700 | 109,183 | — | — | 109,183 | |||||||||||||||||||||||||||||||
Retirement savings and other plans | 195 | 5,578 | — | — | 5,578 | |||||||||||||||||||||||||||||||
Expenses and other, net | — | (6,922 | ) | — | — | (6,922 | ) | |||||||||||||||||||||||||||||
Common stock dividends ($1.24 per share) | — | — | (131,765 | ) | — | (131,765 | ) | |||||||||||||||||||||||||||||
Balance, December 31, 2015 | 107,460 | 1,629,136 | 324,766 | (26,262 | ) | 1,927,640 | ||||||||||||||||||||||||||||||
Net income for common stock | — | — | 248,256 | — | 248,256 | |||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | (6,867 | ) | (6,867 | ) | |||||||||||||||||||||||||||||
Issuance of common stock: | ||||||||||||||||||||||||||||||||||||
Dividend reinvestment and stock purchase plan | 859 | 26,844 | — | — | 26,844 | |||||||||||||||||||||||||||||||
Retirement savings and other plans | 264 | 9,298 | — | — | 9,298 | |||||||||||||||||||||||||||||||
Expenses and other, net | — | (4,368 | ) | — | — | (4,368 | ) | |||||||||||||||||||||||||||||
Common stock dividends ($1.24 per share) | — | — | (134,050 | ) | — | (134,050 | ) | |||||||||||||||||||||||||||||
Balance, December 31, 2016 | 108,583 | $ | 1,660,910 | $ | 438,972 | $ | (33,129 | ) | $ | 2,066,753 | ||||||||||||||||||||||||||
Share-based plans | 94 | 3,092 | — | — | 3,092 | |||||||||||||||||||||||||||||||
Share-based expenses and other, net | — | 5,898 | — | — | 5,898 | |||||||||||||||||||||||||||||||
Common stock dividends ($1.28 per share) | — | — | (139,463 | ) | — | (139,463 | ) | |||||||||||||||||||||||||||||
Balance, December 31, 2019 | 108,973 | $ | 1,678,257 | $ | 622,042 | $ | (20,039 | ) | $ | 2,280,260 |
Consolidated Statements of Cash Flows |
Years ended December 31 | 2019 | 2018 | 2017 | ||||||||
(in thousands) | |||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 219,772 | $ | 203,664 | $ | 167,187 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation of property, plant and equipment | 229,858 | 214,036 | 200,658 | ||||||||
Other amortization | 48,255 | 41,593 | 21,340 | ||||||||
Provision for loan losses | 23,480 | 14,745 | 10,901 | ||||||||
Loans originated, held for sale | (285,042 | ) | (109,537 | ) | (115,104 | ) | |||||
Proceeds from sale of loans, held for sale | 277,119 | 112,182 | 127,951 | ||||||||
Gain on sale of real estate, held for sale | (10,762 | ) | — | — | |||||||
Deferred income taxes | (15,085 | ) | (9,368 | ) | 37,835 | ||||||
Share-based compensation expense | 9,986 | 7,792 | 5,404 | ||||||||
Allowance for equity funds used during construction | (11,987 | ) | (10,877 | ) | (12,483 | ) | |||||
Other | 10,822 | (4,219 | ) | (3,324 | ) | ||||||
Changes in assets and liabilities | |||||||||||
Decrease (increase) in accounts receivable and unbilled revenues, net | 26,083 | (64,321 | ) | (12,875 | ) | ||||||
Decrease (increase) in fuel oil stock | (11,493 | ) | 7,054 | (20,794 | ) | ||||||
Decrease (increase) in regulatory assets | 71,262 | 9,252 | (17,256 | ) | |||||||
Increase (decrease) in accounts, interest and dividends payable | (3,054 | ) | 21,528 | 34,985 | |||||||
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | (27,538 | ) | 29,429 | 20,685 | |||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | (4,482 | ) | 20,871 | 882 | |||||||
Change in other assets and liabilities, net | (34,724 | ) | 15,488 | (25,551 | ) | ||||||
Net cash provided by operating activities | 512,470 | 499,312 | 420,441 | ||||||||
Cash flows from investing activities | |||||||||||
Available-for-sale investment securities purchased | (108,088 | ) | (224,335 | ) | (528,379 | ) | |||||
Principal repayments on available-for-sale investment securities | 272,949 | 218,930 | 220,231 | ||||||||
Proceeds from sale of available-for-sale investment securities | 19,810 | — | — | ||||||||
Purchases of held-to-maturity investment securities | (13,057 | ) | (103,184 | ) | (44,515 | ) | |||||
Proceeds from repayments or maturities of held-to-maturity investment securities | 15,505 | 5,720 | — | ||||||||
Purchase of stock from Federal Home Loan Bank | (95,636 | ) | (28,292 | ) | (2,868 | ) | |||||
Redemption of stock from Federal Home Loan Bank | 97,160 | 28,040 | 4,380 | ||||||||
Net decrease (increase) in loans held for investment | (300,210 | ) | (189,352 | ) | 15,887 | ||||||
Proceeds from sale of commercial loans | — | 7,149 | 36,760 | ||||||||
Proceeds from sale of real estate held for sale | 21,060 | — | — | ||||||||
Capital expenditures | (457,520 | ) | (506,770 | ) | (430,454 | ) | |||||
Contributions to low income housing investments | (6,974 | ) | (14,499 | ) | (17,505 | ) | |||||
Acquisition of business | — | — | (76,323 | ) | |||||||
Other, net | 13,292 | 14,534 | 7,487 | ||||||||
Net cash used in investing activities | (541,709 | ) | (792,059 | ) | (815,299 | ) |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
(in thousands) | |||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 250,146 | $ | 161,767 | $ | 170,019 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation of property, plant and equipment | 194,273 | 183,966 | 172,762 | ||||||||
Other amortization | 10,473 | 11,619 | 10,282 | ||||||||
Provision for loan losses | 16,763 | 6,275 | 6,126 | ||||||||
Impairment of utility assets | — | 6,021 | 1,866 | ||||||||
Loans receivable originated and purchased, held for sale | (236,769 | ) | (268,279 | ) | (155,755 | ) | |||||
Proceeds from sale of loans receivable, held for sale | 236,062 | 275,296 | 155,030 | ||||||||
Deferred income taxes | 47,118 | 41,432 | 104,225 | ||||||||
Share-based compensation expense | 4,789 | 6,542 | 9,287 | ||||||||
Excess tax benefits from share-based payment arrangements | (404 | ) | (978 | ) | (277 | ) | |||||
Allowance for equity funds used during construction | (8,325 | ) | (6,928 | ) | (6,771 | ) | |||||
Other | (12,422 | ) | 1,672 | (280 | ) | ||||||
Changes in assets and liabilities | |||||||||||
Decrease (increase) in accounts receivable and unbilled revenues, net | (898 | ) | 62,304 | 33,089 | |||||||
Decrease in fuel oil stock | 4,786 | 34,830 | 28,041 | ||||||||
Increase in regulatory assets | (18,273 | ) | (24,182 | ) | (17,000 | ) | |||||
Decrease in accounts, interest and dividends payable | (9,643 | ) | (52,663 | ) | (67,189 | ) | |||||
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes | 39,109 | (42,596 | ) | (39,091 | ) | ||||||
Increase in defined benefit pension and other postretirement benefit plans liability | 1,587 | 852 | 22,251 | ||||||||
Change in other assets and liabilities | (23,118 | ) | (41,070 | ) | (101,195 | ) | |||||
Net cash provided by operating activities | 495,254 | 355,880 | 325,420 | ||||||||
Cash flows from investing activities | |||||||||||
Available-for-sale investment securities purchased | (533,956 | ) | (429,262 | ) | (183,778 | ) | |||||
Principal repayments on available-for-sale investment securities | 219,845 | 153,271 | 91,013 | ||||||||
Proceeds from sale of available-for-sale investment securities | 16,423 | — | 79,564 | ||||||||
Purchase of stock from Federal Home Loan Bank | (7,773 | ) | (1,600 | ) | — | ||||||
Redemption of stock from Federal Home Loan Bank | 7,233 | 60,223 | 23,244 | ||||||||
Net increase in loans held for investment | (194,042 | ) | (181,343 | ) | (283,810 | ) | |||||
Proceeds from sale of commercial loans | 52,299 | — | — | ||||||||
Proceeds from sale of real estate acquired in settlement of loans | 829 | 1,329 | 3,213 | ||||||||
Proceeds from sale of real estate held for sale | 1,764 | 7,283 | — | ||||||||
Capital expenditures | (330,043 | ) | (363,804 | ) | (364,826 | ) | |||||
Contributions in aid of construction | 30,100 | 40,239 | 41,806 | ||||||||
Other | 856 | 7,940 | 1,125 | ||||||||
Net cash used in investing activities | (736,465 | ) | (705,724 | ) | (592,449 | ) |
Consolidated Statements of Cash Flows (continued) |
Years ended December 31 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | ||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||
Net increase in deposit liabilities | 523,675 | 401,839 | 250,938 | 113,050 | 165,880 | 341,668 | ||||||||||||||||
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (103,063 | ) | (15,909 | ) | 13,490 | 86,718 | (18,999 | ) | 67,992 | |||||||||||||
Net increase (decrease) in retail repurchase agreements | (43,601 | ) | 37,925 | (9,465 | ) | |||||||||||||||||
Proceeds from other bank borrowings | 180,835 | 50,000 | 130,601 | |||||||||||||||||||
Repayments of other bank borrowings | (272,902 | ) | (50,000 | ) | (75,000 | ) | ||||||||||||||||
Proceeds from issuance of short-term debt | 75,000 | 25,000 | 125,000 | |||||||||||||||||||
Repayment of short-term debt | (50,000 | ) | (50,000 | ) | (75,000 | ) | ||||||||||||||||
Net increase in other bank borrowings with original maturities of three months or less | 5,070 | 71,556 | 61,776 | |||||||||||||||||||
Repayment of other bank borrowings | — | (50,000 | ) | (63,534 | ) | |||||||||||||||||
Proceeds from issuance of long-term debt | 115,000 | 80,000 | 125,000 | 289,349 | 250,000 | 532,325 | ||||||||||||||||
Repayment of long-term debt | (75,000 | ) | — | (111,400 | ) | |||||||||||||||||
Excess tax benefits from share-based payment arrangements | 404 | 978 | 277 | |||||||||||||||||||
Net proceeds from issuance of common stock | 13,220 | 104,435 | 26,898 | |||||||||||||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (287,285 | ) | (53,887 | ) | (465,000 | ) | ||||||||||||||||
Withheld shares for employee taxes on vested share-based compensation | (997 | ) | (996 | ) | (3,828 | ) | ||||||||||||||||
Common stock dividends | (117,274 | ) | (131,765 | ) | (126,458 | ) | (139,463 | ) | (134,987 | ) | (134,873 | ) | ||||||||||
Preferred stock dividends of subsidiaries | (1,890 | ) | (1,890 | ) | (1,890 | ) | (1,890 | ) | (1,890 | ) | (1,890 | ) | ||||||||||
Other | (219 | ) | (833 | ) | (456 | ) | (1,836 | ) | (1,603 | ) | (6,349 | ) | ||||||||||
Net cash provided by financing activities | 219,185 | 474,780 | 222,535 | 87,716 | 200,074 | 378,287 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (22,026 | ) | 124,936 | (44,494 | ) | |||||||||||||||||
Cash and cash equivalents, January 1 | 300,478 | 175,542 | 220,036 | |||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 58,477 | (92,673 | ) | (16,571 | ) | |||||||||||||||||
Cash, cash equivalents and restricted cash, January 1 | 169,208 | 261,881 | 278,452 | |||||||||||||||||||
Cash, cash equivalents and restricted cash, December 31 | 227,685 | 169,208 | 261,881 | |||||||||||||||||||
Less: Restricted cash | (30,872 | ) | — | — | ||||||||||||||||||
Cash and cash equivalents, December 31 | $ | 278,452 | $ | 300,478 | $ | 175,542 | $ | 196,813 | $ | 169,208 | $ | 261,881 |
Consolidated Statements of Income |
Years ended December 31 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Revenues | $ | 2,094,368 | $ | 2,335,166 | $ | 2,987,323 | $ | 2,545,942 | $ | 2,546,525 | $ | 2,257,566 | ||||||||||
Expenses | ||||||||||||||||||||||
Fuel oil | 454,704 | 654,600 | 1,131,685 | 720,709 | 760,528 | 587,768 | ||||||||||||||||
Purchased power | 562,740 | 594,096 | 722,008 | 633,256 | 639,307 | 586,634 | ||||||||||||||||
Other operation and maintenance | 405,533 | 413,089 | 410,612 | 481,737 | 461,491 | 411,907 | ||||||||||||||||
Depreciation | 187,061 | 177,380 | 166,387 | 215,731 | 203,626 | 192,784 | ||||||||||||||||
Taxes, other than income taxes | 199,862 | 221,885 | 280,863 | 240,131 | 239,912 | 214,949 | ||||||||||||||||
Total expenses | 1,809,900 | 2,061,050 | 2,711,555 | 2,291,564 | 2,304,864 | 1,994,042 | ||||||||||||||||
Operating income | 284,468 | 274,116 | 275,768 | 254,378 | 241,661 | 263,524 | ||||||||||||||||
Allowance for equity funds used during construction | 8,325 | 6,928 | 6,771 | 11,987 | 10,877 | 12,483 | ||||||||||||||||
Retirement defined benefits expense—other than service costs | (2,836 | ) | (3,631 | ) | (6,003 | ) | ||||||||||||||||
Interest expense and other charges, net | (66,824 | ) | (66,370 | ) | (64,757 | ) | (70,842 | ) | (73,348 | ) | (69,637 | ) | ||||||||||
Allowance for borrowed funds used during construction | 3,144 | 2,457 | 2,579 | 4,453 | 4,867 | 4,778 | ||||||||||||||||
Income before income taxes | 229,113 | 217,131 | 220,361 | 197,140 | 180,426 | 205,145 | ||||||||||||||||
Income taxes | 84,801 | 79,422 | 80,725 | 38,305 | 34,778 | 83,199 | ||||||||||||||||
Net income | 144,312 | 137,709 | 139,636 | 158,835 | 145,648 | 121,946 | ||||||||||||||||
Preferred stock dividends of subsidiaries | 915 | 915 | 915 | 915 | 915 | 915 | ||||||||||||||||
Net income attributable to Hawaiian Electric | 143,397 | 136,794 | 138,721 | 157,920 | 144,733 | 121,031 | ||||||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | 1,080 | 1,080 | 1,080 | 1,080 | 1,080 | ||||||||||||||||
Net income for common stock | $ | 142,317 | $ | 135,714 | $ | 137,641 | $ | 156,840 | $ | 143,653 | $ | 119,951 |
Consolidated Statements of Comprehensive Income |
Years ended December 31 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Net income for common stock | $ | 142,317 | $ | 135,714 | $ | 137,641 | $ | 156,840 | $ | 143,653 | $ | 119,951 | ||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||||
Derivatives qualified as cash flow hedges: | ||||||||||||||||||||||
Effective portion of foreign currency hedge net unrealized losses arising during the period, net of tax benefits of $179, nil and nil for 2016, 2015 and 2014, respectively | (281 | ) | — | — | ||||||||||||||||||
Less: reclassification adjustment to net income, net of taxes of $110, nil and nil for 2016, 2015 and 2014, respectively | (173 | ) | — | — | ||||||||||||||||||
Reclassification adjustment to net income, net of tax benefits of nil, nil and $289 for 2019, 2018 and 2017, respectively | — | — | 454 | |||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $27,153,$(3,590) and $139,236 for 2016, 2015 and 2014, respectively | (42,631 | ) | 5,638 | (218,608 | ) | |||||||||||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $8,442, $12,981 and $6,504 for 2016, 2015 and 2014, respectively | 13,254 | 20,381 | 10,212 | |||||||||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(18,206), $16,011 and $(132,373) for 2016, 2015 and 2014, respectively | 28,584 | (25,139 | ) | 207,833 | ||||||||||||||||||
Net gains (losses) arising during the period, net of (taxes) benefits of $(1,821), $9,024 and $(39,587) for 2019, 2018 and 2017, respectively | 5,249 | (26,019 | ) | 63,105 | ||||||||||||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits of $3,312, $6,594 and $9,221 for 2019, 2018 and 2017, respectively | 9,550 | 19,012 | 14,477 | |||||||||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of (taxes) benefits of $(5,610), $2,887 and $(49,523) for 2019, 2018 and 2017, respectively | (16,177 | ) | 8,325 | (78,724 | ) | |||||||||||||||||
Other comprehensive income (loss), net of taxes | (1,247 | ) | 880 | (563 | ) | (1,378 | ) | 1,318 | (688 | ) | ||||||||||||
Comprehensive income attributable to Hawaiian Electric Company, Inc. | $ | 141,070 | $ | 136,594 | $ | 137,078 | $ | 155,462 | $ | 144,971 | $ | 119,263 |
Consolidated Balance Sheets |
December 31 | 2016 | 2015 | 2019 | 2018 | ||||||||||
(in thousands) | ||||||||||||||
Assets | ||||||||||||||
Property, plant and equipment | ||||||||||||||
Utility property, plant and equipment | ||||||||||||||
Land | $ | 53,153 | $ | 52,792 | $ | 51,816 | $ | 49,667 | ||||||
Plant and equipment | 6,605,732 | 6,315,698 | 7,240,288 | 6,809,671 | ||||||||||
Less accumulated depreciation | (2,369,282 | ) | (2,266,004 | ) | (2,690,157 | ) | (2,577,342 | ) | ||||||
Construction in progress | 211,742 | 175,309 | 193,074 | 233,145 | ||||||||||
Utility property, plant and equipment, net | 4,501,345 | 4,277,795 | 4,795,021 | 4,515,141 | ||||||||||
Nonutility property, plant and equipment, less accumulated depreciation of $1,232 as of December 31, 2016 and $1,229 as of December 31, 2015 | 7,407 | 7,272 | ||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation of $111 and $1,255 as of December 31, 2019 and 2018, respectively | 6,956 | 6,961 | ||||||||||||
Total property, plant and equipment, net | 4,508,752 | 4,285,067 | 4,801,977 | 4,522,102 | ||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | 74,286 | 24,449 | 11,022 | 35,877 | ||||||||||
Restricted cash | 30,872 | — | ||||||||||||
Customer accounts receivable, net | 123,688 | 132,778 | 152,790 | 177,896 | ||||||||||
Accrued unbilled revenues, net | 91,693 | 84,509 | 117,227 | 121,738 | ||||||||||
Other accounts receivable, net | 5,233 | 10,408 | 11,568 | 6,215 | ||||||||||
Fuel oil stock, at average cost | 66,430 | 71,216 | 91,937 | 79,935 | ||||||||||
Materials and supplies, at average cost | 53,679 | 54,429 | 60,702 | 55,204 | ||||||||||
Prepayments and other | 23,100 | 36,640 | 116,980 | 32,118 | ||||||||||
Regulatory assets | 66,032 | 72,231 | 30,710 | 71,016 | ||||||||||
Total current assets | 504,141 | 486,660 | 623,808 | 579,999 | ||||||||||
Other long-term assets | ||||||||||||||
Operating lease right-of-use-assets | 176,809 | — | ||||||||||||
Regulatory assets | 891,419 | 824,500 | 684,370 | 762,410 | ||||||||||
Unamortized debt expense | 208 | 497 | ||||||||||||
Other | 70,908 | 75,486 | 101,718 | 102,992 | ||||||||||
Total other long-term assets | 962,535 | 900,483 | 962,897 | 865,402 | ||||||||||
Total assets | $ | 5,975,428 | $ | 5,672,210 | $ | 6,388,682 | $ | 5,967,503 | ||||||
Capitalization and liabilities | ||||||||||||||
Capitalization (see Consolidated Statements of Capitalization) | ||||||||||||||
Common stock equity | $ | 1,799,787 | $ | 1,728,325 | $ | 2,047,352 | $ | 1,957,641 | ||||||
Cumulative preferred stock – not subject to mandatory redemption | 34,293 | 34,293 | 34,293 | 34,293 | ||||||||||
Commitments and contingencies (Note 4) | ||||||||||||||
Commitments and contingencies (Note 3) | ||||||||||||||
Long-term debt, net | 1,319,260 | 1,278,702 | 1,401,714 | 1,418,802 | ||||||||||
Total capitalization | 3,153,340 | 3,041,320 | 3,483,359 | 3,410,736 | ||||||||||
Current liabilities | ||||||||||||||
Current portion of operating lease liabilities | 63,707 | — | ||||||||||||
Current portion of long-term debt, net | 95,953 | — | ||||||||||||
Short-term borrowings from non-affiliate | 88,987 | 25,000 | ||||||||||||
Accounts payable | 117,814 | 114,846 | 187,770 | 171,791 | ||||||||||
Interest and preferred dividends payable | 22,838 | 23,111 | 20,728 | 23,215 | ||||||||||
Taxes accrued | 172,730 | 191,084 | ||||||||||||
Taxes accrued, including revenue taxes | 207,992 | 233,333 | ||||||||||||
Regulatory liabilities | 3,762 | 2,204 | 30,724 | 17,977 | ||||||||||
Other | 55,221 | 54,079 | 67,305 | 60,003 | ||||||||||
Total current liabilities | 372,365 | 385,324 | 763,166 | 531,319 | ||||||||||
Deferred credits and other liabilities | ||||||||||||||
Operating lease liabilities | 113,400 | — | ||||||||||||
Deferred income taxes | 733,659 | 654,806 | 377,150 | 383,197 | ||||||||||
Regulatory liabilities | 406,931 | 369,339 | 941,586 | 932,259 | ||||||||||
Unamortized tax credits | 88,961 | 84,214 | 117,868 | 91,522 | ||||||||||
Defined benefit pension and other postretirement benefit plans liability | 599,726 | 552,974 | 478,763 | 503,659 | ||||||||||
Other | 76,921 | 78,146 | 113,390 | 114,811 | ||||||||||
Total deferred credits and other liabilities | 1,906,198 | 1,739,479 | 2,142,157 | 2,025,448 | ||||||||||
Contributions in aid of construction | 543,525 | 506,087 | ||||||||||||
Total capitalization and liabilities | $ | 5,975,428 | $ | 5,672,210 | $ | 6,388,682 | $ | 5,967,503 |
Consolidated Statements of Capitalization |
December 31 | 2019 | 2018 | |||||||
(dollars in thousands, except par value) | |||||||||
Common stock equity | |||||||||
Common stock of $6 2/3 par value | |||||||||
Authorized: 50,000,000 shares. Outstanding: 17,048,783 shares and | |||||||||
16,751,488 shares at December 31, 2019 and 2018, respectively | $ | 113,678 | $ | 111,696 | |||||
Premium on capital stock | 714,824 | 681,305 | |||||||
Retained earnings | 1,220,129 | 1,164,541 | |||||||
Accumulated other comprehensive income (loss), net of taxes-retirement benefit plans | (1,279 | ) | 99 | ||||||
Common stock equity | 2,047,352 | 1,957,641 |
Cumulative preferred stock not subject to mandatory redemption | |||||||||||||||||
Authorized: 5,000,000 shares of $20 par value and 7,000,000 shares of $100 par value. | |||||||||||||||||
Series | Par Value | Shares outstanding December 31, 2019 and 2018 | 2019 | 2018 | |||||||||||||
(dollars in thousands, except par value and shares outstanding) | |||||||||||||||||
C-4 1/4% | $ | 20 | (Hawaiian Electric) | 150,000 | $ | 3,000 | $ | 3,000 | |||||||||
D-5% | 20 | (Hawaiian Electric) | 50,000 | 1,000 | 1,000 | ||||||||||||
E-5% | 20 | (Hawaiian Electric) | 150,000 | 3,000 | 3,000 | ||||||||||||
H-5 1/4% | 20 | (Hawaiian Electric) | 250,000 | 5,000 | 5,000 | ||||||||||||
I-5% | 20 | (Hawaiian Electric) | 89,657 | 1,793 | 1,793 | ||||||||||||
J-4 3/4% | 20 | (Hawaiian Electric) | 250,000 | 5,000 | 5,000 | ||||||||||||
K-4.65% | 20 | (Hawaiian Electric) | 175,000 | 3,500 | 3,500 | ||||||||||||
G-7 5/8% | 100 | (Hawaii Electric Light) | 70,000 | 7,000 | 7,000 | ||||||||||||
H-7 5/8% | 100 | (Maui Electric) | 50,000 | 5,000 | 5,000 | ||||||||||||
1,234,657 | 34,293 | 34,293 |
December 31 | 2016 | 2015 | |||||||||||
(dollars in thousands, except par value) | |||||||||||||
Common stock equity | |||||||||||||
Common stock of $6 2/3 par value | |||||||||||||
Authorized: 50,000,000 shares. Outstanding: 16,019,785 shares and | |||||||||||||
15,805,327 shares at December 31, 2016 and 2015, respectively | $ | 106,818 | $ | 105,388 | |||||||||
Premium on capital stock | 601,491 | 578,930 | |||||||||||
Retained earnings | 1,091,800 | 1,043,082 | |||||||||||
Accumulated other comprehensive income (loss), net of taxes | |||||||||||||
Unrealized losses on derivatives | (454 | ) | — | ||||||||||
Retirement benefit plans | 132 | (322 | ) | 925 | 925 | ||||||||
Common stock equity | 1,799,787 | 1,728,325 | |||||||||||
Cumulative preferred stock not subject to mandatory redemption | |||||||||||||
Authorized: 5,000,000 shares of $20 par value and 7,000,000 shares of $100 par value. |
Series | Par Value | Par Value | Shares outstanding December 31, 2016 and 2015 | 2016 | 2015 | ||||||||||||
(dollars in thousands, except par value and shares outstanding) | |||||||||||||||||
C-4 1/4% | $ | 20 | (Hawaiian Electric) | 150,000 | $ | 3,000 | $ | 3,000 | |||||||||
D-5% | 20 | (Hawaiian Electric) | 50,000 | 1,000 | 1,000 | ||||||||||||
E-5% | 20 | (Hawaiian Electric) | 150,000 | 3,000 | 3,000 | ||||||||||||
H-5 1/4% | 20 | (Hawaiian Electric) | 250,000 | 5,000 | 5,000 | ||||||||||||
I-5% | 20 | (Hawaiian Electric) | 89,657 | 1,793 | 1,793 | ||||||||||||
J-4 3/4% | 20 | (Hawaiian Electric) | 250,000 | 5,000 | 5,000 | ||||||||||||
K-4.65% | 20 | (Hawaiian Electric) | 175,000 | 3,500 | 3,500 | ||||||||||||
G-7 5/8% | 100 | (Hawaii Electric Light) | 70,000 | 7,000 | 7,000 | ||||||||||||
H-7 5/8% | 100 | (Maui Electric) | 50,000 | 5,000 | 5,000 | ||||||||||||
1,234,657 | 34,293 | 34,293 |
Consolidated Statements of Capitalization (continued) |
December 31 | 2016 | 2015 | |||||
(in thousands) | |||||||
Long-term debt | |||||||
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | |||||||
Hawaiian Electric, 3.25%, refunding series 2015, due 2025 | $ | 40,000 | $ | 40,000 | |||
Hawaii Electric Light, 3.25%, refunding series 2015, due 2025 | 5,000 | 5,000 | |||||
Maui Electric, 3.25%, refunding series 2015, due 2025 | 2,000 | 2,000 | |||||
Hawaiian Electric, 6.50%, series 2009, due 2039 | 90,000 | 90,000 | |||||
Hawaii Electric Light, 6.50%, series 2009, due 2039 | 60,000 | 60,000 | |||||
Hawaiian Electric, 4.60%, refunding series 2007B, due 2026 | 62,000 | 62,000 | |||||
Hawaii Electric Light, 4.60%, refunding series 2007B, due 2026 | 8,000 | 8,000 | |||||
Maui Electric, 4.60%, refunding series 2007B, due 2026 | 55,000 | 55,000 | |||||
Hawaiian Electric, 4.65%, series 2007A, due 2037 | 100,000 | 100,000 | |||||
Hawaii Electric Light, 4.65%, series 2007A, due 2037 | 20,000 | 20,000 | |||||
Maui Electric, 4.65%, series 2007A, due 2037 | 20,000 | 20,000 | |||||
Total obligations to the State of Hawaii | 462,000 | 462,000 | |||||
Other long-term debt – unsecured: | |||||||
Taxable senior notes: | |||||||
Hawaiian Electric, 4.54%, Series 2016A, due 2046 | 40,000 | — | |||||
Hawaiian Electric, 5.23%, Series 2015A, due 2045 | 50,000 | 50,000 | |||||
Hawaii Electric Light, 5.23%, Series 2015A, due 2045 | 25,000 | 25,000 | |||||
Maui Electric, 5.23%, Series 2015A, due 2045 | 5,000 | 5,000 | |||||
Hawaii Electric Light, 3.83%, Series 2013A, due 2020 | 14,000 | 14,000 | |||||
Hawaiian Electric, 4.45%, Series 2013A, due 2022 | 40,000 | 40,000 | |||||
Hawaii Electric Light, 4.45%, Series 2013B, due 2022 | 12,000 | 12,000 | |||||
Hawaiian Electric, 4.84%, Series 2013B, due 2027 | 50,000 | 50,000 | |||||
Hawaii Electric Light, 4.84%, Series 2013C, due 2027 | 30,000 | 30,000 | |||||
Maui Electric, 4.84%, Series 2013A, due 2027 | 20,000 | 20,000 | |||||
Hawaiian Electric, 5.65%, Series 2013C, due 2043 | 50,000 | 50,000 | |||||
Maui Electric, 5.65%, Series 2013B, due 2043 | 20,000 | 20,000 | |||||
Hawaiian Electric, 3.79%, Series 2012A, due 2018 | 30,000 | 30,000 | |||||
Hawaii Electric Light, 3.79%, Series 2012A, due 2018 | 11,000 | 11,000 | |||||
Maui Electric, 3.79%, Series 2012A, due 2018 | 9,000 | 9,000 | |||||
Hawaiian Electric, 4.03%, Series 2012B, due 2020 | 62,000 | 62,000 | |||||
Maui Electric, 4.03%, Series 2012B, due 2020 | 20,000 | 20,000 | |||||
Hawaiian Electric, 4.55%, Series 2012C, due 2023 | 50,000 | 50,000 | |||||
Hawaii Electric Light, 4.55%, Series 2012B, due 2023 | 20,000 | 20,000 | |||||
Maui Electric, 4.55%, Series 2012C, due 2023 | 30,000 | 30,000 | |||||
Hawaiian Electric, 4.72%, Series 2012D, due 2029 | 35,000 | 35,000 | |||||
Hawaiian Electric, 5.39%, Series 2012E, due 2042 | 150,000 | 150,000 | |||||
Hawaiian Electric, 4.53%, Series 2012F, due 2032 | 40,000 | 40,000 | |||||
Total taxable senior notes | 813,000 | 773,000 | |||||
6.50 %, series 2004, Junior subordinated deferrable interest debentures, due 2034 | 51,546 | 51,546 | |||||
Total other long-term debt – unsecured | 864,546 | 824,546 | |||||
Total long-term debt | 1,326,546 | 1,286,546 | |||||
Less unamortized debt issuance costs | 7,286 | 7,844 | |||||
Long-term debt, net | 1,319,260 | 1,278,702 | |||||
Total capitalization | $ | 3,153,340 | $ | 3,041,320 |
December 31 | 2019 | 2018 | |||||
(in thousands) | |||||||
Long-term debt | |||||||
Obligations to the State of Hawaii for the repayment of Special Purpose Revenue Bonds (subsidiary obligations unconditionally guaranteed by Hawaiian Electric): | |||||||
3.50%, Series 2019, due 2049 | $ | 80,000 | $ | — | |||
3.20%, Refunding series 2019, due 2039 | 150,000 | — | |||||
3.10%, Refunding series 2017A, due 2026 | 125,000 | 125,000 | |||||
4.00%, Refunding series 2017B, due 2037 | 140,000 | 140,000 | |||||
3.25%, Refunding series 2015, due 2025 | 47,000 | 47,000 | |||||
6.50%, Series 2009, due 2039 - redeemed in 2019 | — | 150,000 | |||||
Total obligations to the State of Hawaii | $ | 542,000 | $ | 462,000 | |||
Other long-term debt – unsecured: | |||||||
Taxable senior notes: | |||||||
4.21%, Series 2019A, due 2033 | $ | 50,000 | $ | — | |||
4.38%, Series 2018A, due 2028 | 67,500 | 67,500 | |||||
4.53%, Series 2018B, due 2033 | 17,500 | 17,500 | |||||
4.72%, Series 2018C, due 2048 | 15,000 | 15,000 | |||||
4.31%, Series 2017A, due 2047 | 50,000 | 50,000 | |||||
4.54%, Series 2016A, due 2046 | 40,000 | 40,000 | |||||
5.23%, Series 2015A, due 2045 | 80,000 | 80,000 | |||||
3.83%, Series 2013A, due 2020 | 14,000 | 14,000 | |||||
4.45%, Series 2013A and 2013B, due 2022 | 52,000 | 52,000 | |||||
4.84%, Series 2013A, 2013B and 2013C, due 2027 | 100,000 | 100,000 | |||||
5.65%, Series 2013B and 2013C, due 2043 | 70,000 | 70,000 | |||||
4.03%, Series 2012B, due 2020 | 82,000 | 82,000 | |||||
4.55%, Series 2012B and 2012C, due 2023 | 100,000 | 100,000 | |||||
4.72%, Series 2012D, due 2029 | 35,000 | 35,000 | |||||
5.39%, Series 2012E, due 2042 | 150,000 | 150,000 | |||||
4.53%, Series 2012F, due 2032 | 40,000 | 40,000 | |||||
Total taxable senior notes | 963,000 | 913,000 | |||||
6.50 %, series 2004, Junior subordinated deferrable interest debentures, due 2034 - redeemed in 2019 | — | 51,546 | |||||
Total other long-term debt – unsecured | 963,000 | 964,546 | |||||
Total long-term debt | 1,505,000 | 1,426,546 | |||||
Less unamortized debt issuance costs | 7,333 | 7,744 | |||||
Less current portion long-term debt, net of unamortized debt issuance costs | 95,953 | — | |||||
Long-term debt, net | 1,401,714 | 1,418,802 | |||||
Total capitalization | $ | 3,483,359 | $ | 3,410,736 |
Consolidated Statements of Changes in Common Stock Equity |
Common stock | Premium on capital | Retained | Accumulated other comprehensive | Common stock | Premium on capital stock | Retained earnings | Accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||
(in thousands) | Shares | Amount | stock | earnings | income (loss) | Total | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | 15,429 | $ | 102,880 | $ | 541,452 | $ | 948,624 | $ | 608 | $ | 1,593,564 | |||||||||||||||||||||||||||||||||
Balance, December 31, 2016 | 16,020 | $ | 106,818 | $ | 601,491 | $ | 1,091,800 | $ | (322 | ) | $ | 1,799,787 | ||||||||||||||||||||||||||||||||
Net income for common stock | — | — | — | 119,951 | — | 119,951 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | — | (688 | ) | (688 | ) | ||||||||||||||||||||||||||||||||||||
Reclass of AOCI for tax rate reduction impact | — | — | — | 209 | (209 | ) | — | |||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of expenses | 122 | 816 | 13,184 | — | — | 14,000 | ||||||||||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (87,767 | ) | — | (87,767 | ) | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | 16,142 | 107,634 | 614,675 | 1,124,193 | (1,219 | ) | 1,845,283 | |||||||||||||||||||||||||||||||||||||
Net income for common stock | — | — | — | 143,653 | — | 143,653 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | — | 1,318 | 1,318 | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of expenses | 609 | 4,062 | 66,630 | — | — | 70,692 | ||||||||||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (103,305 | ) | — | (103,305 | ) | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 16,751 | 111,696 | 681,305 | 1,164,541 | 99 | 1,957,641 | ||||||||||||||||||||||||||||||||||||||
Net income for common stock | — | — | — | 137,641 | — | 137,641 | — | — | — | 156,840 | — | 156,840 | ||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | — | (563 | ) | (563 | ) | — | — | — | — | (1,378 | ) | (1,378 | ) | ||||||||||||||||||||||||||||
Issuance of common stock, net of expenses | 376 | 2,508 | 37,486 | — | — | 39,994 | 297 | 1,982 | 33,519 | — | — | 35,501 | ||||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (88,492 | ) | — | (88,492 | ) | — | — | — | (101,252 | ) | — | (101,252 | ) | ||||||||||||||||||||||||||||
Balance, December 31, 2014 | 15,805 | 105,388 | 578,938 | 997,773 | 45 | 1,682,144 | ||||||||||||||||||||||||||||||||||||||
Net income for common stock | — | — | — | 135,714 | — | 135,714 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | — | 880 | 880 | ||||||||||||||||||||||||||||||||||||||
Common stock issuance expenses | — | — | (8 | ) | — | — | (8 | ) | ||||||||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (90,405 | ) | — | (90,405 | ) | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2015 | 15,805 | 105,388 | 578,930 | 1,043,082 | 925 | 1,728,325 | ||||||||||||||||||||||||||||||||||||||
Net income for common stock | — | — | — | 142,317 | — | 142,317 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax benefits | — | — | — | — | (1,247 | ) | (1,247 | ) | ||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of expenses | 215 | 1,430 | 22,561 | — | — | 23,991 | ||||||||||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (93,599 | ) | — | (93,599 | ) | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2016 | 16,020 | $ | 106,818 | $ | 601,491 | $ | 1,091,800 | $ | (322 | ) | $ | 1,799,787 | ||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 17,048 | $ | 113,678 | $ | 714,824 | $ | 1,220,129 | $ | (1,279 | ) | $ | 2,047,352 |
Consolidated Statements of Cash Flows |
Years ended December 31 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||
Net income | $ | 144,312 | $ | 137,709 | $ | 139,636 | $ | 158,835 | $ | 145,648 | $ | 121,946 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||||
Depreciation of property, plant and equipment | 187,061 | 177,380 | 166,387 | 215,731 | 203,626 | 192,784 | ||||||||||||||||
Other amortization | 6,935 | 8,939 | 9,897 | 29,631 | 26,602 | 8,498 | ||||||||||||||||
Impairment of utility assets | — | 6,021 | 1,866 | |||||||||||||||||||
Deferred income taxes | 74,386 | 75,626 | 82,947 | (16,284 | ) | (7,982 | ) | 38,037 | ||||||||||||||
Income tax credits, net | 231 | 4,844 | 6,062 | 27,259 | (99 | ) | (52 | ) | ||||||||||||||
State refundable credit | (8,369 | ) | (6,239 | ) | (2,251 | ) | ||||||||||||||||
Allowance for equity funds used during construction | (8,325 | ) | (6,928 | ) | (6,771 | ) | (11,987 | ) | (10,877 | ) | (12,483 | ) | ||||||||||
Change in cash overdraft | — | — | (1,038 | ) | ||||||||||||||||||
Other | (3,931 | ) | 1,672 | 758 | 200 | 4,768 | 1,237 | |||||||||||||||
Changes in assets and liabilities | ||||||||||||||||||||||
Decrease in accounts receivable | 8,551 | 23,727 | 26,743 | |||||||||||||||||||
Decrease (increase) in accounts receivable | 20,956 | (50,917 | ) | 2,914 | ||||||||||||||||||
Decrease (increase) in accrued unbilled revenues | (7,184 | ) | 40,093 | 6,750 | 4,511 | (14,684 | ) | (15,361 | ) | |||||||||||||
Decrease in fuel oil stock | 4,786 | 34,830 | 28,041 | |||||||||||||||||||
Decrease (increase) in materials and supplies | 750 | 2,821 | (72 | ) | ||||||||||||||||||
Increase in regulatory assets | (18,273 | ) | (24,182 | ) | (17,000 | ) | ||||||||||||||||
Decrease in accounts payable | (10,614 | ) | (54,555 | ) | (65,527 | ) | ||||||||||||||||
Decrease (increase) in fuel oil stock | (12,002 | ) | 6,938 | (20,443 | ) | |||||||||||||||||
Increase in materials and supplies | (5,498 | ) | (807 | ) | (718 | ) | ||||||||||||||||
Decrease (increase) in regulatory assets | 71,262 | 9,252 | (17,256 | ) | ||||||||||||||||||
Increase in regulatory liabilities | 1,953 | 37,358 | 3,602 | |||||||||||||||||||
Increase (decrease) in accounts payable | (2,051 | ) | 24,358 | 25,734 | ||||||||||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 2,123 | (63,096 | ) | (4,036 | ) | (28,523 | ) | 25,036 | 29,862 | |||||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 484 | 1,125 | (961 | ) | (4,448 | ) | 18,746 | 604 | ||||||||||||||
Change in other assets and liabilities | (11,375 | ) | (32,620 | ) | (66,687 | ) | (17,220 | ) | (17,114 | ) | (21,468 | ) | ||||||||||
Net cash provided by operating activities | 369,917 | 333,406 | 306,995 | 423,956 | 393,613 | 335,186 | ||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||||
Capital expenditures | (320,437 | ) | (350,161 | ) | (336,679 | ) | (419,898 | ) | (415,264 | ) | (376,865 | ) | ||||||||||
Contributions in aid of construction | 30,100 | 40,239 | 41,806 | |||||||||||||||||||
Other | 2,138 | 1,140 | 1,164 | 11,374 | 10,082 | 4,578 | ||||||||||||||||
Net cash used in investing activities | (288,199 | ) | (308,782 | ) | (293,709 | ) | (408,524 | ) | (405,182 | ) | (372,287 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||||||||||
Common stock dividends | (93,599 | ) | (90,405 | ) | (88,492 | ) | (101,252 | ) | (103,305 | ) | (87,767 | ) | ||||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,995 | ) | (1,995 | ) | (1,995 | ) | (1,995 | ) | (1,995 | ) | (1,995 | ) | ||||||||||
Proceeds from issuance of common stock | 24,000 | — | 40,000 | 35,500 | 70,700 | 14,000 | ||||||||||||||||
Proceeds from issuance of long-term debt | 40,000 | 80,000 | — | 280,000 | 100,000 | 315,000 | ||||||||||||||||
Repayment of long-term debt | — | — | (11,400 | ) | ||||||||||||||||||
Repayment of long-term debt and funds transferred for repayment of long-term debt | (283,546 | ) | (50,000 | ) | (265,000 | ) | ||||||||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 38,987 | (4,999 | ) | 4,999 | ||||||||||||||||||
Proceeds from issuance of short-term debt | 75,000 | 25,000 | — | |||||||||||||||||||
Repayment of short-term debt | (50,000 | ) | — | — | ||||||||||||||||||
Other | (287 | ) | (1,537 | ) | (462 | ) | (2,109 | ) | (472 | ) | (3,905 | ) | ||||||||||
Net cash used in financing activities | (31,881 | ) | (13,937 | ) | (62,349 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 49,837 | 10,687 | (49,063 | ) | ||||||||||||||||||
Cash and cash equivalents, January 1 | 24,449 | 13,762 | 62,825 | |||||||||||||||||||
Net cash provided by (used in) financing activities | (9,415 | ) | 34,929 | (24,668 | ) | |||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 6,017 | 23,360 | (61,769 | ) | ||||||||||||||||||
Cash, cash equivalents and restricted cash, January 1 | 35,877 | 12,517 | 74,286 | |||||||||||||||||||
Cash, cash equivalents and restricted cash, December 31 | 41,894 | 35,877 | 12,517 | |||||||||||||||||||
Less: Restricted cash | (30,872 | ) | — | — | ||||||||||||||||||
Cash and cash equivalents, December 31 | $ | 74,286 | $ | 24,449 | $ | 13,762 | $ | 11,022 | $ | 35,877 | $ | 12,517 |
Note 1 · Summary of significant accounting policies |
General |
(in millions) | HEI | Hawaiian Electric | |||||
2017 | $ | 12 | $ | 6 | |||
2018 | 9 | 4 | |||||
2019 | 7 | 4 | |||||
2020 | 5 | 3 | |||||
2021 | 4 | 3 | |||||
Thereafter | 8 | 4 | |||||
$ | 45 | $ | 24 |
2014 | ||||||||
Basic | Diluted | |||||||
Distributed earnings | $ | 1.24 | $ | 1.24 | ||||
Undistributed earnings | 0.41 | 0.39 | ||||||
$ | 1.65 | $ | 1.63 |
(in thousands) | As previously filed | Adjustment from adoption of ASU No. 2015-03 | As currently reported | |||||||
December 31, 2015 | ||||||||||
HEI Consolidated Balance Sheet and Note 3 - Segment financial information (Total assets) | ||||||||||
Other assets | $ | 488,635 | $ | (8,178 | ) | $ | 480,457 | |||
Total assets and Total liabilities and shareholders’ equity | 11,790,196 | (8,178 | ) | 11,782,018 | ||||||
Long-term debt, net-other than bank | 1,586,546 | (8,178 | ) | 1,578,368 | ||||||
Total liabilities | 9,828,263 | (8,178 | ) | 9,820,085 | ||||||
Hawaiian Electric Consolidated Balance Sheet and Note 3 - Segment financial information (Total assets) | ||||||||||
Unamortized debt expense | 8,341 | (7,844 | ) | 497 | ||||||
Total other long-term assets | 908,327 | (7,844 | ) | 900,483 | ||||||
Total assets and Total capitalization and liabilities | 5,680,054 | (7,844 | ) | 5,672,210 | ||||||
Long-term debt, net | 1,286,546 | (7,844 | ) | 1,278,702 | ||||||
Total capitalization | 3,049,164 | (7,844 | ) | 3,041,320 | ||||||
Note 4 - Hawaiian Electric Consolidating Balance Sheet | ||||||||||
Hawaiian Electric (parent only) | ||||||||||
Unamortized debt expense | 5,742 | (5,383 | ) | 359 | ||||||
Total other long-term assets | 662,430 | (5,383 | ) | 657,047 | ||||||
Total assets and Total capitalization and liabilities | 4,481,558 | (5,383 | ) | 4,476,175 | ||||||
Long-term debt, net | 880,546 | (5,383 | ) | 875,163 | ||||||
Total capitalization | 2,631,164 | (5,383 | ) | 2,625,781 | ||||||
Hawaii Electric Light | ||||||||||
Unamortized debt expense | 1,494 | (1,420 | ) | 74 | ||||||
Total other long-term assets | 130,749 | (1,420 | ) | 129,329 | ||||||
Total assets and Total capitalization and liabilities | 955,935 | (1,420 | ) | 954,515 | ||||||
Long-term debt, net | 215,000 | (1,420 | ) | 213,580 | ||||||
Total capitalization | 514,702 | (1,420 | ) | 513,282 | ||||||
Maui Electric | ||||||||||
Unamortized debt expense | 1,105 | (1,041 | ) | 64 | ||||||
Total other long-term assets | 115,148 | (1,041 | ) | 114,107 | ||||||
Total assets and Total capitalization and liabilities | 831,201 | (1,041 | ) | 830,160 | ||||||
Long-term debt, net | 191,000 | (1,041 | ) | 189,959 | ||||||
Total capitalization | 459,725 | (1,041 | ) | 458,684 |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
(in millions) | |||||||||||
Amounts in income taxes related to investments in qualifying affordable housing projects | |||||||||||
Amortization recognized in the provision for income taxes | $ | (5.8 | ) | $ | (5.4 | ) | $ | (3.6 | ) | ||
Tax credits and other tax benefits recognized in the provision for income taxes | 8.4 | 8.0 | 5.4 | ||||||||
Net benefit to income tax expense | $ | 2.6 | $ | 2.6 | $ | 1.8 |
(in thousands) | Electric utility | Bank | Other | Total | |||||||||||
2016 | |||||||||||||||
Revenues from external customers | $ | 2,094,224 | $ | 285,924 | $ | 506 | $ | 2,380,654 | |||||||
Intersegment revenues (eliminations) | 144 | — | (144 | ) | — | ||||||||||
Revenues | 2,094,368 | 285,924 | 362 | 2,380,654 | |||||||||||
Depreciation and amortization | 193,996 | 9,813 | 937 | 204,746 | |||||||||||
Interest expense, net | 66,824 | 12,755 | 8,979 | 88,558 | |||||||||||
Income before income taxes | 229,113 | 87,352 | 57,376 | 373,841 | |||||||||||
Income taxes | 84,801 | 30,073 | 8,821 | 123,695 | |||||||||||
Net income | 144,312 | 57,279 | 48,555 | 250,146 | |||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | ||||||||||
Net income for common stock | 142,317 | 57,279 | 48,660 | 248,256 | |||||||||||
Capital expenditures | 320,437 | 9,394 | 212 | 330,043 | |||||||||||
Assets (at December 31, 2016) | 5,975,428 | 6,421,357 | 28,721 | 12,425,506 | |||||||||||
2015 | |||||||||||||||
Revenues from external customers | $ | 2,335,135 | $ | 267,733 | $ | 114 | $ | 2,602,982 | |||||||
Intersegment revenues (eliminations) | 31 | — | (31 | ) | — | ||||||||||
Revenues | 2,335,166 | 267,733 | 83 | 2,602,982 | |||||||||||
Depreciation and amortization | 186,319 | 7,928 | 1,338 | 195,585 | |||||||||||
Interest expense, net | 66,370 | 11,326 | 10,780 | 88,476 | |||||||||||
Income (loss) before income taxes | 217,131 | 83,812 | (46,155 | ) | 254,788 | ||||||||||
Income taxes (benefit) | 79,422 | 29,082 | (15,483 | ) | 93,021 | ||||||||||
Net income (loss) | 137,709 | 54,730 | (30,672 | ) | 161,767 | ||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | ||||||||||
Net income (loss) for common stock | 135,714 | 54,730 | (30,567 | ) | 159,877 | ||||||||||
Capital expenditures | 350,161 | 13,470 | 173 | 363,804 | |||||||||||
Assets (at December 31, 2015) | 5,672,210 | 6,014,755 | 95,053 | 11,782,018 | |||||||||||
2014 | |||||||||||||||
Revenues from external customers | $ | 2,987,299 | $ | 252,497 | $ | (254 | ) | $ | 3,239,542 | ||||||
Intersegment revenues (eliminations) | 24 | — | (24 | ) | — | ||||||||||
Revenues | 2,987,323 | 252,497 | (278 | ) | 3,239,542 | ||||||||||
Depreciation and amortization | 176,284 | 5,399 | 1,361 | 183,044 | |||||||||||
Interest expense, net | 64,757 | 10,808 | 11,595 | 87,160 | |||||||||||
Income (loss) before income taxes | 220,361 | 79,295 | (34,058 | ) | 265,598 | ||||||||||
Income taxes (benefit) | 80,725 | 27,994 | (13,140 | ) | 95,579 | ||||||||||
Net income (loss) | 139,636 | 51,301 | (20,918 | ) | 170,019 | ||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | ||||||||||
Net income (loss) for common stock | 137,641 | 51,301 | (20,813 | ) | 168,129 | ||||||||||
Capital expenditures | 336,679 | 28,073 | 74 | 364,826 | |||||||||||
Assets (at December 31, 2014) | 5,550,021 | 5,566,222 | 60,900 | 11,177,143 |
December 31 | 2016 | 2015 | |||||
(in thousands) | |||||||
Retirement benefit plans (balance primarily varies with plans’ funded statuses) | $ | 745,367 | $ | 679,766 | |||
Income taxes, net (1 to 55 years) | 90,100 | 88,039 | |||||
Decoupling revenue balancing account and RAM regulatory asset (1 to 2 years) | 73,485 | 74,462 | |||||
Unamortized expense and premiums on retired debt and equity issuances (19 to 30 years; 6 to 18 years remaining) | 12,299 | 14,089 | |||||
Vacation earned, but not yet taken (1 year) | 10,970 | 10,420 | |||||
Other (1 to 50 years; 1 to 46 years remaining) | 25,230 | 29,955 | |||||
$ | 957,451 | $ | 896,731 | ||||
Included in: | |||||||
Current assets | $ | 66,032 | $ | 72,231 | |||
Long-term assets | 891,419 | 824,500 | |||||
$ | 957,451 | $ | 896,731 |
December 31 | 2016 | 2015 | |||||
(in thousands) | |||||||
Cost of removal in excess of salvage value (1 to 60 years) | $ | 394,072 | $ | 357,825 | |||
Retirement benefit plans (5 years beginning with respective utility’s next rate case) | 10,824 | 9,835 | |||||
Other (5 years; 1 to 2 years remaining) | 5,797 | 3,883 | |||||
$ | 410,693 | $ | 371,543 | ||||
Included in: | |||||||
Current liabilities | $ | 3,762 | $ | 2,204 | |||
Long-term liabilities | 406,931 | 369,339 | |||||
$ | 410,693 | $ | 371,543 |
December 31, 2016 | Voluntary liquidation price | Redemption price | |||||
Series | |||||||
C, D, E, H, J and K (Hawaiian Electric) | $ | 20 | $ | 21 | |||
I (Hawaiian Electric) | 20 | 20 | |||||
G (Hawaii Electric Light) | 100 | 100 | |||||
H (Maui Electric) | 100 | 100 |
(in thousands) | 2016 | 2015 | |||||
Balance, January 1 | $ | 26,848 | $ | 29,419 | |||
Accretion expense | 10 | 24 | |||||
Liabilities incurred | — | — | |||||
Liabilities settled | (1,269 | ) | (2,595 | ) | |||
Revisions in estimated cash flows | — | — | |||||
Balance, December 31 | $ | 25,589 | $ | 26,848 |
December 31 | 2016 | |||||||
(dollars in thousands) | Notional amount | Fair value | ||||||
Window forward contract | $ | 20,734 | $ | (743 | ) |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Revenues | $ | 1,474,384 | 311,385 | 308,705 | — | (106 | ) | [1] | $ | 2,094,368 | ||||||||||
Expenses | ||||||||||||||||||||
Fuel oil | 305,359 | 55,094 | 94,251 | — | — | 454,704 | ||||||||||||||
Purchased power | 431,009 | 81,018 | 50,713 | — | — | 562,740 | ||||||||||||||
Other operation and maintenance | 273,176 | 63,897 | 68,460 | — | — | 405,533 | ||||||||||||||
Depreciation | 126,086 | 37,797 | 23,178 | — | — | 187,061 | ||||||||||||||
Taxes, other than income taxes | 141,615 | 29,017 | 29,230 | — | — | 199,862 | ||||||||||||||
Total expenses | 1,277,245 | 266,823 | 265,832 | — | — | 1,809,900 | ||||||||||||||
Operating income | 197,139 | 44,562 | 42,873 | — | (106 | ) | 284,468 | |||||||||||||
Allowance for equity funds used during construction | 6,659 | 765 | 901 | — | — | 8,325 | ||||||||||||||
Equity in earnings of subsidiaries | 42,391 | — | — | — | (42,391 | ) | [2] | — | ||||||||||||
Interest expense and other charges, net | (45,839 | ) | (11,555 | ) | (9,536 | ) | — | 106 | [1] | (66,824 | ) | |||||||||
Allowance for borrowed funds used during construction | 2,484 | 294 | 366 | — | — | 3,144 | ||||||||||||||
Income before income taxes | 202,834 | 34,066 | 34,604 | — | (42,391 | ) | 229,113 | |||||||||||||
Income taxes | 59,437 | 12,277 | 13,087 | — | — | 84,801 | ||||||||||||||
Net income | 143,397 | 21,789 | 21,517 | — | (42,391 | ) | 144,312 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | ||||||||||||||
Net income attributable to Hawaiian Electric | 143,397 | 21,255 | 21,136 | — | (42,391 | ) | 143,397 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | ||||||||||||||
Net income for common stock | $ | 142,317 | 21,255 | 21,136 | — | (42,391 | ) | $ | 142,317 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Net income for common stock | $ | 142,317 | 21,255 | 21,136 | — | (42,391 | ) | $ | 142,317 | |||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||
Derivatives qualified as cash flow hedges: | ||||||||||||||||||||
Effective portion of foreign currency hedge net unrealized losses arising during the period, net of tax benefits | (281 | ) | — | — | — | — | (281 | ) | ||||||||||||
Less: reclassification adjustment to net income, net of taxes | (173 | ) | — | — | — | — | (173 | ) | ||||||||||||
Retirement benefit plans: | ||||||||||||||||||||
Net losses arising during the period, net of tax benefits | (42,631 | ) | (5,141 | ) | (5,447 | ) | — | 10,588 | [1] | (42,631 | ) | |||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 13,254 | 1,718 | 1,549 | — | (3,267 | ) | [1] | 13,254 | ||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 28,584 | 3,269 | 3,852 | — | (7,121 | ) | [1] | 28,584 | ||||||||||||
Other comprehensive loss, net of tax benefits | (1,247 | ) | (154 | ) | (46 | ) | — | 200 | (1,247 | ) | ||||||||||
Comprehensive income attributable to common shareholder | $ | 141,070 | 21,101 | 21,090 | — | (42,191 | ) | $ | 141,070 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Revenues | $ | 1,644,181 | 345,549 | 345,517 | — | (81 | ) | [1] | $ | 2,335,166 | ||||||||||
Expenses | ||||||||||||||||||||
Fuel oil | 458,069 | 71,851 | 124,680 | — | — | 654,600 | ||||||||||||||
Purchased power | 440,983 | 97,503 | 55,610 | — | — | 594,096 | ||||||||||||||
Other operation and maintenance | 284,583 | 63,098 | 65,408 | — | — | 413,089 | ||||||||||||||
Depreciation | 117,682 | 37,250 | 22,448 | — | — | 177,380 | ||||||||||||||
Taxes, other than income taxes | 156,871 | 32,312 | 32,702 | — | — | 221,885 | ||||||||||||||
Total expenses | 1,458,188 | 302,014 | 300,848 | — | — | 2,061,050 | ||||||||||||||
Operating income | 185,993 | 43,535 | 44,669 | — | (81 | ) | 274,116 | |||||||||||||
Allowance for equity funds used during construction | 5,641 | 604 | 683 | — | — | 6,928 | ||||||||||||||
Equity in earnings of subsidiaries | 42,920 | — | — | — | (42,920 | ) | [2] | — | ||||||||||||
Interest expense and other charges, net | (45,899 | ) | (10,773 | ) | (9,779 | ) | 81 | [1] | (66,370 | ) | ||||||||||
Allowance for borrowed funds used during construction | 1,967 | 215 | 275 | — | — | 2,457 | ||||||||||||||
Income before income taxes | 190,622 | 33,581 | 35,848 | — | (42,920 | ) | 217,131 | |||||||||||||
Income taxes | 53,828 | 12,292 | 13,302 | — | — | 79,422 | ||||||||||||||
Net income | 136,794 | 21,289 | 22,546 | — | (42,920 | ) | 137,709 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | ||||||||||||||
Net income attributable to Hawaiian Electric | 136,794 | 20,755 | 22,165 | — | (42,920 | ) | 136,794 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | ||||||||||||||
Net income for common stock | $ | 135,714 | 20,755 | 22,165 | — | (42,920 | ) | $ | 135,714 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Net income for common stock | $ | 135,714 | 20,755 | 22,165 | — | (42,920 | ) | $ | 135,714 | |||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||
Net gains (losses) arising during the period, net of taxes | 5,638 | (2,710 | ) | (1,352 | ) | — | 4,062 | [1] | 5,638 | |||||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 20,381 | 2,728 | 2,503 | — | (5,231 | ) | [1] | 20,381 | ||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (25,139 | ) | 104 | (1,107 | ) | — | 1,003 | [1] | (25,139 | ) | ||||||||||
Other comprehensive income, net of taxes | 880 | 122 | 44 | — | (166 | ) | 880 | |||||||||||||
Comprehensive income attributable to common shareholder | $ | 136,594 | 20,877 | 22,209 | — | (43,086 | ) | $ | 136,594 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Revenues | $ | 2,142,245 | 422,200 | 422,965 | — | (87 | ) | [1] | $ | 2,987,323 | ||||||||||
Expenses | ||||||||||||||||||||
Fuel oil | 821,246 | 117,215 | 193,224 | — | — | 1,131,685 | ||||||||||||||
Purchased power | 537,821 | 123,226 | 60,961 | — | — | 722,008 | ||||||||||||||
Other operation and maintenance | 283,532 | 65,471 | 61,609 | — | — | 410,612 | ||||||||||||||
Depreciation | 109,204 | 35,904 | 21,279 | — | — | 166,387 | ||||||||||||||
Taxes, other than income taxes | 201,426 | 39,521 | 39,916 | — | — | 280,863 | ||||||||||||||
Total expenses | 1,953,229 | 381,337 | 376,989 | — | — | 2,711,555 | ||||||||||||||
Operating income | 189,016 | 40,863 | 45,976 | — | (87 | ) | 275,768 | |||||||||||||
Allowance for equity funds used during construction | 6,085 | 472 | 214 | — | — | 6,771 | ||||||||||||||
Equity in earnings of subsidiaries | 40,964 | — | — | — | (40,964 | ) | [2] | — | ||||||||||||
Interest expense and other charges, net | (44,041 | ) | (11,030 | ) | (9,773 | ) | — | 87 | [1] | (64,757 | ) | |||||||||
Allowance for borrowed funds used during construction | 2,306 | 182 | 91 | — | — | 2,579 | ||||||||||||||
Income before income taxes | 194,330 | 30,487 | 36,508 | — | (40,964 | ) | 220,361 | |||||||||||||
Income taxes | 55,609 | 11,264 | 13,852 | — | — | 80,725 | ||||||||||||||
Net income | 138,721 | 19,223 | 22,656 | — | (40,964 | ) | 139,636 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | ||||||||||||||
Net income attributable to Hawaiian Electric | 138,721 | 18,689 | 22,275 | — | (40,964 | ) | 138,721 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | ||||||||||||||
Net income for common stock | $ | 137,641 | 18,689 | 22,275 | — | (40,964 | ) | $ | 137,641 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Net income for common stock | $ | 137,641 | 18,689 | 22,275 | — | (40,964 | ) | $ | 137,641 | |||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||
Net losses arising during the period, net of tax benefits | (218,608 | ) | (28,725 | ) | (29,352 | ) | — | 58,077 | [1] | (218,608 | ) | |||||||||
Less: amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 10,212 | 1,270 | 1,090 | — | (2,360 | ) | [1] | 10,212 | ||||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of tax benefits | 207,833 | 27,437 | 28,257 | — | (55,694 | ) | [1] | 207,833 | ||||||||||||
Other comprehensive loss, net of tax benefits | (563 | ) | (18 | ) | (5 | ) | — | 23 | (563 | ) | ||||||||||
Comprehensive income attributable to common shareholder | $ | 137,078 | 18,671 | 22,270 | — | (40,941 | ) | $ | 137,078 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Assets | ||||||||||||||||||||
Property, plant and equipment | ||||||||||||||||||||
Utility property, plant and equipment | ||||||||||||||||||||
Land | $ | 43,956 | 6,181 | 3,016 | — | — | $ | 53,153 | ||||||||||||
Plant and equipment | 4,241,060 | 1,255,185 | 1,109,487 | — | — | 6,605,732 | ||||||||||||||
Less accumulated depreciation | (1,382,972 | ) | (507,666 | ) | (478,644 | ) | — | — | (2,369,282 | ) | ||||||||||
Construction in progress | 180,194 | 12,510 | 19,038 | — | — | 211,742 | ||||||||||||||
Utility property, plant and equipment, net | 3,082,238 | 766,210 | 652,897 | — | — | 4,501,345 | ||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 5,760 | 115 | 1,532 | — | — | 7,407 | ||||||||||||||
Total property, plant and equipment, net | 3,087,998 | 766,325 | 654,429 | — | — | 4,508,752 | ||||||||||||||
Investment in wholly-owned subsidiaries, at equity | 550,946 | — | — | — | (550,946 | ) | [2] | — | ||||||||||||
Current assets | ||||||||||||||||||||
Cash and equivalents | 61,388 | 10,749 | 2,048 | 101 | — | 74,286 | ||||||||||||||
Advances to affiliates | — | 3,500 | 10,000 | — | (13,500 | ) | [1] | — | ||||||||||||
Customer accounts receivable, net | 86,373 | 20,055 | 17,260 | — | — | 123,688 | ||||||||||||||
Accrued unbilled revenues, net | 65,821 | 13,564 | 12,308 | — | — | 91,693 | ||||||||||||||
Other accounts receivable, net | 7,652 | 2,445 | 1,416 | — | (6,280 | ) | [1] | 5,233 | ||||||||||||
Fuel oil stock, at average cost | 47,239 | 8,229 | 10,962 | — | — | 66,430 | ||||||||||||||
Materials and supplies, at average cost | 29,928 | 7,380 | 16,371 | — | — | 53,679 | ||||||||||||||
Prepayments and other | 16,502 | 5,352 | 2,179 | — | (933 | ) | [3] | 23,100 | ||||||||||||
Regulatory assets | 60,185 | 3,483 | 2,364 | — | — | 66,032 | ||||||||||||||
Total current assets | 375,088 | 74,757 | 74,908 | 101 | (20,713 | ) | 504,141 | |||||||||||||
Other long-term assets | ||||||||||||||||||||
Regulatory assets | 662,232 | 120,863 | 108,324 | — | — | 891,419 | ||||||||||||||
Unamortized debt expense | 151 | 23 | 34 | — | — | 208 | ||||||||||||||
Other | 43,743 | 13,573 | 13,592 | — | — | 70,908 | ||||||||||||||
Total other long-term assets | 706,126 | 134,459 | 121,950 | — | — | 962,535 | ||||||||||||||
Total assets | $ | 4,720,158 | 975,541 | 851,287 | 101 | (571,659 | ) | $ | 5,975,428 | |||||||||||
Capitalization and liabilities | ||||||||||||||||||||
Capitalization | ||||||||||||||||||||
Common stock equity | $ | 1,799,787 | 291,291 | 259,554 | 101 | (550,946 | ) | [2] | $ | 1,799,787 | ||||||||||
Cumulative preferred stock–not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | ||||||||||||||
Long-term debt, net | 915,437 | 213,703 | 190,120 | — | — | 1,319,260 | ||||||||||||||
Total capitalization | 2,737,517 | 511,994 | 454,674 | 101 | (550,946 | ) | 3,153,340 | |||||||||||||
Current liabilities | ||||||||||||||||||||
Short-term borrowings-affiliate | 13,500 | — | — | — | (13,500 | ) | [1] | — | ||||||||||||
Accounts payable | 86,369 | 18,126 | 13,319 | — | — | 117,814 | ||||||||||||||
Interest and preferred dividends payable | 15,761 | 4,206 | 2,882 | — | (11 | ) | [1] | 22,838 | ||||||||||||
Taxes accrued | 120,176 | 28,100 | 25,387 | — | (933 | ) | [3] | 172,730 | ||||||||||||
Regulatory liabilities | — | 2,219 | 1,543 | — | — | 3,762 | ||||||||||||||
Other | 41,352 | 7,637 | 12,501 | — | (6,269 | ) | [1] | 55,221 | ||||||||||||
Total current liabilities | 277,158 | 60,288 | 55,632 | — | (20,713 | ) | 372,365 | |||||||||||||
Deferred credits and other liabilities | ||||||||||||||||||||
Deferred income taxes | 524,433 | 108,052 | 100,911 | — | 263 | [1] | 733,659 | |||||||||||||
Regulatory liabilities | 281,112 | 93,974 | 31,845 | — | — | 406,931 | ||||||||||||||
Unamortized tax credits | 57,844 | 15,994 | 15,123 | — | — | 88,961 | ||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 444,458 | 75,005 | 80,263 | — | — | 599,726 | ||||||||||||||
Other | 49,191 | 13,024 | 14,969 | — | (263 | ) | [1] | 76,921 | ||||||||||||
Total deferred credits and other liabilities | 1,357,038 | 306,049 | 243,111 | — | — | 1,906,198 | ||||||||||||||
Contributions in aid of construction | 348,445 | 97,210 | 97,870 | — | — | 543,525 | ||||||||||||||
Total capitalization and liabilities | $ | 4,720,158 | 975,541 | 851,287 | 101 | (571,659 | ) | $ | 5,975,428 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Assets | ||||||||||||||||||||
Property, plant and equipment | ||||||||||||||||||||
Utility property, plant and equipment | ||||||||||||||||||||
Land | $ | 43,557 | 6,219 | 3,016 | — | — | $ | 52,792 | ||||||||||||
Plant and equipment | 4,026,079 | 1,212,195 | 1,077,424 | — | — | 6,315,698 | ||||||||||||||
Less accumulated depreciation | (1,316,467 | ) | (486,028 | ) | (463,509 | ) | — | — | (2,266,004 | ) | ||||||||||
Construction in progress | 147,979 | 11,455 | 15,875 | — | — | 175,309 | ||||||||||||||
Utility property, plant and equipment, net | 2,901,148 | 743,841 | 632,806 | — | — | 4,277,795 | ||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 5,659 | 82 | 1,531 | — | — | 7,272 | ||||||||||||||
Total property, plant and equipment, net | 2,906,807 | 743,923 | 634,337 | — | — | 4,285,067 | ||||||||||||||
Investment in wholly-owned subsidiaries, at equity | 556,528 | — | — | — | (556,528 | ) | [2] | — | ||||||||||||
Current assets | ||||||||||||||||||||
Cash and equivalents | 16,281 | 2,682 | 5,385 | 101 | — | 24,449 | ||||||||||||||
Advances to affiliates | — | 15,500 | 7,500 | — | (23,000 | ) | [1] | — | ||||||||||||
Customer accounts receivable, net | 93,515 | 20,508 | 18,755 | — | — | 132,778 | ||||||||||||||
Accrued unbilled revenues, net | 60,080 | 12,531 | 11,898 | — | — | 84,509 | ||||||||||||||
Other accounts receivable, net | 16,421 | 1,275 | 1,674 | — | (8,962 | ) | [1] | 10,408 | ||||||||||||
Fuel oil stock, at average cost | 49,455 | 8,310 | 13,451 | — | — | 71,216 | ||||||||||||||
Materials and supplies, at average cost | 30,921 | 6,865 | 16,643 | — | — | 54,429 | ||||||||||||||
Prepayments and other | 25,505 | 9,091 | 2,295 | — | (251 | ) | [1], [3] | 36,640 | ||||||||||||
Regulatory assets | 63,615 | 4,501 | 4,115 | — | — | 72,231 | ||||||||||||||
Total current assets | 355,793 | 81,263 | 81,716 | 101 | (32,213 | ) | 486,660 | |||||||||||||
Other long-term assets | ||||||||||||||||||||
Regulatory assets | 608,957 | 114,562 | 100,981 | — | — | 824,500 | ||||||||||||||
Unamortized debt expense | 359 | 74 | 64 | — | — | 497 | ||||||||||||||
Other | 47,731 | 14,693 | 13,062 | — | — | 75,486 | ||||||||||||||
Total other long-term assets | 657,047 | 129,329 | 114,107 | — | — | 900,483 | ||||||||||||||
Total assets | $ | 4,476,175 | 954,515 | 830,160 | 101 | (588,741 | ) | $ | 5,672,210 | |||||||||||
Capitalization and liabilities | ||||||||||||||||||||
Capitalization | ||||||||||||||||||||
Common stock equity | $ | 1,728,325 | 292,702 | 263,725 | 101 | (556,528 | ) | [2] | $ | 1,728,325 | ||||||||||
Cumulative preferred stock–not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | ||||||||||||||
Long-term debt, net | 875,163 | 213,580 | 189,959 | — | — | 1,278,702 | ||||||||||||||
Total capitalization | 2,625,781 | 513,282 | 458,684 | 101 | (556,528 | ) | 3,041,320 | |||||||||||||
Current liabilities | ||||||||||||||||||||
Short-term borrowings-affiliate | 23,000 | — | — | — | (23,000 | ) | [1] | — | ||||||||||||
Accounts payable | 84,631 | 17,702 | 12,513 | — | — | 114,846 | ||||||||||||||
Interest and preferred dividends payable | 15,747 | 4,255 | 3,113 | — | (4 | ) | [1] | 23,111 | ||||||||||||
Taxes accrued | 131,668 | 30,342 | 29,325 | — | (251 | ) | [3] | 191,084 | ||||||||||||
Regulatory liabilities | — | 1,030 | 1,174 | — | — | 2,204 | ||||||||||||||
Other | 41,083 | 8,760 | 13,194 | — | (8,958 | ) | [1] | 54,079 | ||||||||||||
Total current liabilities | 296,129 | 62,089 | 59,319 | — | (32,213 | ) | 385,324 | |||||||||||||
Deferred credits and other liabilities | ||||||||||||||||||||
Deferred income taxes | 466,133 | 100,681 | 87,706 | — | 286 | [1] | 654,806 | |||||||||||||
Regulatory liabilities | 254,033 | 84,623 | 30,683 | — | — | 369,339 | ||||||||||||||
Unamortized tax credits | 54,078 | 15,406 | 14,730 | — | — | 84,214 | ||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 409,021 | 69,893 | 74,060 | — | — | 552,974 | ||||||||||||||
Other | 51,273 | 13,243 | 13,916 | — | (286 | ) | [1] | 78,146 | ||||||||||||
Total deferred credits and other liabilities | 1,234,538 | 283,846 | 221,095 | — | — | 1,739,479 | ||||||||||||||
Contributions in aid of construction | 319,727 | 95,298 | 91,062 | — | — | 506,087 | ||||||||||||||
Total capitalization and liabilities | $ | 4,476,175 | 954,515 | 830,160 | 101 | (588,741 | ) | $ | 5,672,210 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | |||||||||||||
Balance, December 31, 2013 | $ | 1,593,564 | 274,802 | 248,771 | 101 | (523,674 | ) | $ | 1,593,564 | ||||||||||
Net income for common stock | 137,641 | 18,689 | 22,275 | — | (40,964 | ) | 137,641 | ||||||||||||
Other comprehensive loss, net of tax benefits | (563 | ) | (18 | ) | (5 | ) | — | 23 | (563 | ) | |||||||||
Issuance of common stock, net of expenses | 39,994 | — | — | — | — | 39,994 | |||||||||||||
Common stock dividends | (88,492 | ) | (11,627 | ) | (14,349 | ) | — | 25,976 | (88,492 | ) | |||||||||
Balance, December 31, 2014 | $ | 1,682,144 | 281,846 | 256,692 | 101 | (538,639 | ) | $ | 1,682,144 | ||||||||||
Net income for common stock | 135,714 | 20,755 | 22,165 | — | (42,920 | ) | 135,714 | ||||||||||||
Other comprehensive income, net of taxes | 880 | 122 | 44 | — | (166 | ) | 880 | ||||||||||||
Common stock issuance expenses | (8 | ) | — | (1 | ) | — | 1 | (8 | ) | ||||||||||
Common stock dividends | (90,405 | ) | (10,021 | ) | (15,175 | ) | — | 25,196 | (90,405 | ) | |||||||||
Balance, December 31, 2015 | $ | 1,728,325 | 292,702 | 263,725 | 101 | (556,528 | ) | $ | 1,728,325 | ||||||||||
Net income for common stock | 142,317 | 21,255 | 21,136 | — | (42,391 | ) | 142,317 | ||||||||||||
Other comprehensive loss, net of tax benefits | (1,247 | ) | (154 | ) | (46 | ) | — | 200 | (1,247 | ) | |||||||||
Issuance of common stock, net of expenses | 23,991 | (5 | ) | — | — | 5 | 23,991 | ||||||||||||
Common stock dividends | (93,599 | ) | (22,507 | ) | (25,261 | ) | — | 47,768 | (93,599 | ) | |||||||||
Balance, December 31, 2016 | $ | 1,799,787 | 291,291 | 259,554 | 101 | (550,946 | ) | $ | 1,799,787 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 143,397 | 21,789 | 21,517 | — | (42,391 | ) | [2] | $ | 144,312 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Equity in earnings | (42,491 | ) | — | — | — | 42,391 | [2] | (100 | ) | |||||||||||
Common stock dividends received from subsidiaries | 47,843 | — | — | — | (47,768 | ) | [2] | 75 | ||||||||||||
Depreciation of property, plant and equipment | 126,086 | 37,797 | 23,178 | — | — | 187,061 | ||||||||||||||
Other amortization | 2,979 | 1,817 | 2,139 | — | — | 6,935 | ||||||||||||||
Deferred income taxes | 54,721 | 7,027 | 12,661 | — | (23 | ) | [1] | 74,386 | ||||||||||||
Income tax credits, net | 177 | 60 | (6 | ) | — | — | 231 | |||||||||||||
Allowance for equity funds used during construction | (6,659 | ) | (765 | ) | (901 | ) | — | — | (8,325 | ) | ||||||||||
Other | (2,694 | ) | (810 | ) | (427 | ) | — | — | (3,931 | ) | ||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Decrease (increase) in accounts receivable | 10,175 | (718 | ) | 1,776 | — | (2,682 | ) | [1] | 8,551 | |||||||||||
Increase in accrued unbilled revenues | (5,741 | ) | (1,033 | ) | (410 | ) | — | — | (7,184 | ) | ||||||||||
Decrease in fuel oil stock | 2,216 | 81 | 2,489 | — | — | 4,786 | ||||||||||||||
Decrease (increase) in materials and supplies | 993 | (515 | ) | 272 | — | — | 750 | |||||||||||||
Increase in regulatory assets | (16,161 | ) | (1,243 | ) | (869 | ) | — | — | (18,273 | ) | ||||||||||
Increase (decrease) in accounts payable | (10,247 | ) | 768 | (1,135 | ) | — | — | (10,614 | ) | |||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 2,933 | 2,645 | (3,478 | ) | — | 23 | [1] | 2,123 | ||||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 599 | 53 | (168 | ) | — | — | 484 | |||||||||||||
Change in other assets and liabilities | (11,682 | ) | (78 | ) | (2,272 | ) | — | 2,682 | [1] | (11,350 | ) | |||||||||
Net cash provided by operating activities | 296,444 | 66,875 | 54,366 | — | (47,768 | ) | 369,917 | |||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (236,425 | ) | (51,344 | ) | (32,668 | ) | — | — | (320,437 | ) | ||||||||||
Contributions in aid of construction | 23,611 | 3,412 | 3,077 | — | — | 30,100 | ||||||||||||||
Advances from affiliates | — | 12,000 | (2,500 | ) | — | (9,500 | ) | [1] | — | |||||||||||
Other | 1,932 | 175 | 31 | — | — | 2,138 | ||||||||||||||
Net cash used in investing activities | (210,882 | ) | (35,757 | ) | (32,060 | ) | — | (9,500 | ) | (288,199 | ) | |||||||||
Cash flows from financing activities | ||||||||||||||||||||
Common stock dividends | (93,599 | ) | (22,507 | ) | (25,261 | ) | — | 47,768 | [2] | (93,599 | ) | |||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | ||||||||||
Proceeds from issuance of common stock | 24,000 | — | — | — | — | 24,000 | ||||||||||||||
Proceeds from issuance of long-term debt | 40,000 | — | — | — | — | 40,000 | ||||||||||||||
Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (9,500 | ) | — | — | — | 9,500 | [1] | — | ||||||||||||
Other | (276 | ) | (10 | ) | (1 | ) | — | — | (287 | ) | ||||||||||
Net cash used in financing activities | (40,455 | ) | (23,051 | ) | (25,643 | ) | — | 57,268 | (31,881 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 45,107 | 8,067 | (3,337 | ) | — | — | 49,837 | |||||||||||||
Cash and cash equivalents, January 1 | 16,281 | 2,682 | 5,385 | 101 | — | 24,449 | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 61,388 | 10,749 | 2,048 | 101 | — | $ | 74,286 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 136,794 | 21,289 | 22,546 | — | (42,920 | ) | [2] | $ | 137,709 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Equity in earnings | (43,020 | ) | — | — | — | 42,920 | [2] | (100 | ) | |||||||||||
Common stock dividends received from subsidiaries | 25,296 | — | — | — | (25,196 | ) | [2] | 100 | ||||||||||||
Depreciation of property, plant and equipment | 117,682 | 37,250 | 22,448 | — | — | 177,380 | ||||||||||||||
Other amortization | 4,678 | 2,124 | 2,137 | — | — | 8,939 | ||||||||||||||
Impairment of utility assets | 4,573 | 724 | 724 | — | — | 6,021 | ||||||||||||||
Other | 4,403 | (2,476 | ) | (255 | ) | — | — | 1,672 | ||||||||||||
Deferred income taxes | 53,338 | 8,295 | 13,707 | — | 286 | [1] | 75,626 | |||||||||||||
Income tax credits, net | 4,284 | 527 | 33 | — | — | 4,844 | ||||||||||||||
Allowance for equity funds used during construction | (5,641 | ) | (604 | ) | (683 | ) | — | — | (6,928 | ) | ||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Decrease in accounts receivable | 15,652 | 3,420 | 4,617 | — | 38 | [1] | 23,727 | |||||||||||||
Decrease in accrued unbilled revenues | 29,733 | 4,593 | 5,767 | — | — | 40,093 | ||||||||||||||
Decrease in fuel oil stock | 25,060 | 5,490 | 4,280 | — | — | 34,830 | ||||||||||||||
Decrease (increase) in materials and supplies | 2,233 | (201 | ) | 789 | — | — | 2,821 | |||||||||||||
Decrease (increase) in regulatory assets | (20,356 | ) | (3,930 | ) | 104 | — | — | (24,182 | ) | |||||||||||
Decrease in accounts payable | (42,751 | ) | (6,425 | ) | (5,379 | ) | — | — | (54,555 | ) | ||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (50,382 | ) | (6,166 | ) | (6,548 | ) | — | — | (63,096 | ) | ||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 870 | (161 | ) | 416 | — | — | 1,125 | |||||||||||||
Change in other assets and liabilities | (24,197 | ) | (3,545 | ) | (4,554 | ) | — | (324 | ) | [1] | (32,620 | ) | ||||||||
Net cash provided by operating activities | 238,249 | 60,204 | 60,149 | — | (25,196 | ) | 333,406 | |||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (267,621 | ) | (48,645 | ) | (33,895 | ) | — | — | (350,161 | ) | ||||||||||
Contributions in aid of construction | 35,955 | 2,160 | 2,124 | — | — | 40,239 | ||||||||||||||
Advances from (to) affiliates | 16,100 | (15,500 | ) | (7,500 | ) | — | 6,900 | [1] | — | |||||||||||
Other | 924 | 132 | 84 | — | — | 1,140 | ||||||||||||||
Net cash used in investing activities | (214,642 | ) | (61,853 | ) | (39,187 | ) | — | 6,900 | (308,782 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Common stock dividends | (90,405 | ) | (10,021 | ) | (15,175 | ) | — | 25,196 | [2] | (90,405 | ) | |||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | ||||||||||
Proceeds from the issuance of long-term debt | 50,000 | 25,000 | 5,000 | — | — | 80,000 | ||||||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 23,000 | (10,500 | ) | (5,600 | ) | — | (6,900 | ) | [1] | — | ||||||||||
Other | (1,257 | ) | (226 | ) | (54 | ) | — | — | (1,537 | ) | ||||||||||
Net cash used in financing activities | (19,742 | ) | 3,719 | (16,210 | ) | — | 18,296 | (13,937 | ) | |||||||||||
Net increase in cash and cash equivalents | 3,865 | 2,070 | 4,752 | — | — | 10,687 | ||||||||||||||
Cash and cash equivalents, January 1 | 12,416 | 612 | 633 | 101 | — | 13,762 | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 16,281 | 2,682 | 5,385 | 101 | — | $ | 24,449 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 138,721 | 19,223 | 22,656 | — | (40,964 | ) | [2] | $ | 139,636 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Equity in earnings | (41,064 | ) | — | — | — | 40,964 | [2] | (100 | ) | |||||||||||
Common stock dividends received from subsidiaries | 26,076 | — | — | — | (25,976 | ) | [2] | 100 | ||||||||||||
Depreciation of property, plant and equipment | 109,204 | 35,904 | 21,279 | — | — | 166,387 | ||||||||||||||
Other amortization | 4,535 | 2,926 | 2,436 | — | — | 9,897 | ||||||||||||||
Impairment of assets | 1,866 | — | — | — | — | 1,866 | ||||||||||||||
Other | 758 | — | — | — | — | 758 | ||||||||||||||
Deferred income taxes | 56,901 | 12,083 | 13,963 | — | — | 82,947 | ||||||||||||||
Income tax credits, net | 4,998 | 680 | 384 | — | — | 6,062 | ||||||||||||||
Allowance for equity funds used during construction | (6,085 | ) | (472 | ) | (214 | ) | — | — | (6,771 | ) | ||||||||||
Change in cash overdraft | — | — | (1,038 | ) | — | — | (1,038 | ) | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Decrease in accounts receivable | 16,213 | 7,150 | 3,483 | — | (103 | ) | [1] | 26,743 | ||||||||||||
Decrease in accrued unbilled revenues | 4,680 | 1,174 | 896 | — | — | 6,750 | ||||||||||||||
Decrease in fuel oil stock | 25,098 | 378 | 2,565 | — | — | 28,041 | ||||||||||||||
Decrease (increase) in materials and supplies | 2,357 | 219 | (2,648 | ) | — | — | (72 | ) | ||||||||||||
Decrease (increase) in regulatory assets | (14,620 | ) | (3,357 | ) | 977 | — | — | (17,000 | ) | |||||||||||
Decrease in accounts payable | (56,044 | ) | (6,645 | ) | (2,838 | ) | — | — | (65,527 | ) | ||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (4,166 | ) | (3,251 | ) | 3,381 | — | — | (4,036 | ) | |||||||||||
Decrease in defined benefit pension and other postretirement benefit plans liability | (562 | ) | — | (399 | ) | — | — | (961 | ) | |||||||||||
Change in other assets and liabilities | (50,180 | ) | (12,907 | ) | (3,703 | ) | — | 103 | [1] | (66,687 | ) | |||||||||
Net cash provided by operating activities | 218,686 | 53,105 | 61,180 | — | (25,976 | ) | 306,995 | |||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (237,970 | ) | (49,895 | ) | (48,814 | ) | — | — | (336,679 | ) | ||||||||||
Contributions in aid of construction | 30,021 | 7,695 | 4,090 | — | — | 41,806 | ||||||||||||||
Advances from (to) affiliates | (9,261 | ) | 1,000 | — | — | 8,261 | [1] | — | ||||||||||||
Other | 604 | 492 | 68 | — | — | 1,164 | ||||||||||||||
Net cash used in investing activities | (216,606 | ) | (40,708 | ) | (44,656 | ) | — | 8,261 | (293,709 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Common stock dividends | (88,492 | ) | (11,627 | ) | (14,349 | ) | — | 25,976 | [2] | (88,492 | ) | |||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | ||||||||||
Proceeds from the issuance of common stock | 40,000 | — | — | — | — | 40,000 | ||||||||||||||
Repayment of long-term debt | — | (11,400 | ) | — | — | — | (11,400 | ) | ||||||||||||
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (1,000 | ) | 10,500 | (1,239 | ) | — | (8,261 | ) | [1] | — | ||||||||||
Other | (337 | ) | (50 | ) | (75 | ) | — | — | (462 | ) | ||||||||||
Net cash used in financing activities | (50,909 | ) | (13,111 | ) | (16,044 | ) | — | 17,715 | (62,349 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | (48,829 | ) | (714 | ) | 480 | — | — | (49,063 | ) | |||||||||||
Cash and cash equivalents, January 1 | 61,245 | 1,326 | 153 | 101 | — | 62,825 | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 12,416 | 612 | 633 | 101 | — | $ | 13,762 |
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 |
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 |
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 |
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 | ) |
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 |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
(in millions) | |||||||||||
Proceeds | $ | 16.4 | $ | — | $ | 79.6 | |||||
Gross gains | 0.6 | — | 2.8 | ||||||||
Gross losses | — | — | — |
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 |
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 |
(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 |
(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 | % |
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 |
(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 | $ | — |
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 |
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 |
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 |
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 |
(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 |
(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 |
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 | % |
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 | ) |
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 |
(in thousands) | |||
2017 | $ | 322,661 | |
2018 | 70,611 | ||
2019 | 105,478 | ||
2020 | 81,818 | ||
2021 | 73,686 | ||
Thereafter | 3,271 | ||
$ | 657,525 |
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 |
(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 | $ | — |
(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 |
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 |
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 |
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 | ) |
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 |
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 | ) |
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 |
Years ended December 31 | 2016 | 2015 | 2014 | |||||||||
(in millions) | ||||||||||||
AES Hawaii | $ | 149 | $ | 134 | $ | 145 | ||||||
Kalaeloa | 152 | 187 | 279 | |||||||||
HEP | 29 | 44 | 51 | |||||||||
HPOWER | 71 | 66 | 66 | |||||||||
Puna Geothermal Venture | 28 | 29 | 45 | |||||||||
Hawaiian Commercial & Sugar (HC&S) | 1 | 8 | 15 | |||||||||
Other IPPs | 133 | 126 | 121 | |||||||||
Total IPPs | $ | 563 | $ | 594 | $ | 722 |
December 31 | 2016 | 2015 | |||||
(dollars in thousands) | |||||||
Long-term debt of Utilities 1 | $ | 1,319,260 | $ | 1,278,702 | |||
HEI term loan LIBOR + .75%, due 2017 | 125,000 | 125,000 | |||||
HEI term loan LIBOR + .75%, due 2018 | 75,000 | — | |||||
HEI senior note 4.41%, paid 2016 | — | 75,000 | |||||
HEI senior note 5.67%, due 2021 | 50,000 | 50,000 | |||||
HEI senior note 3.99%, due 2023 | 50,000 | 50,000 | |||||
Less unamortized debt issuance costs | (241 | ) | (334 | ) | |||
$ | 1,619,019 | $ | 1,578,368 |
HEI Consolidated | Hawaiian Electric Consolidated | ||||||||||||||||||||||||||
(in thousands) | Net unrealized gains (losses) on securities | Unrealized gains(losses) on derivatives | Retirement benefit plans | AOCI | Unrealized losses on derivatives | Retirement benefit plans | AOCI | ||||||||||||||||||||
Balance, December 31, 2013 | $ | (3,663 | ) | $ | (525 | ) | $ | (12,562 | ) | $ | (16,750 | ) | $ | — | $ | 608 | $ | 608 | |||||||||
Current period other comprehensive income (loss) | 4,125 | 236 | (14,989 | ) | (10,628 | ) | — | (563 | ) | (563 | ) | ||||||||||||||||
Balance, December 31, 2014 | 462 | (289 | ) | (27,551 | ) | (27,378 | ) | — | 45 | 45 | |||||||||||||||||
Current period other comprehensive income (loss) | (2,334 | ) | 235 | 3,215 | 1,116 | — | 880 | 880 | |||||||||||||||||||
Balance, December 31, 2015 | (1,872 | ) | (54 | ) | (24,336 | ) | (26,262 | ) | — | 925 | 925 | ||||||||||||||||
Current period other comprehensive loss | (6,059 | ) | (400 | ) | (408 | ) | (6,867 | ) | (454 | ) | (793 | ) | (1,247 | ) | |||||||||||||
Balance, December 31, 2016 | $ | (7,931 | ) | $ | (454 | ) | $ | (24,744 | ) | $ | (33,129 | ) | $ | (454 | ) | $ | 132 | (322 | ) |
Amount reclassified from AOCI | ||||||||||||||
Years ended December 31 | 2016 | 2015 | 2014 | Affected line item in the Statement of Income | ||||||||||
(in thousands) | ||||||||||||||
HEI consolidated | ||||||||||||||
Net realized gains on securities | $ | (360 | ) | $ | — | $ | (1,715 | ) | Revenues-bank (net gains on sales of securities) | |||||
Derivatives qualified as cash flow hedges | ||||||||||||||
Window forward contracts | (173 | ) | — | — | Revenues-electric utilities (gains on window forward contracts–see Note 4 for additional details) | |||||||||
Interest rate contracts (settled in 2011) | 54 | 235 | 236 | Interest expense | ||||||||||
Retirement benefit plan items | ||||||||||||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | 14,518 | 22,465 | 11,344 | See Note 10 for additional details | ||||||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 28,584 | (25,139 | ) | 207,833 | See Note 10 for additional details | |||||||||
Total reclassifications | $ | 42,623 | $ | (2,439 | ) | $ | 217,698 | |||||||
Hawaiian Electric consolidated | ||||||||||||||
Derivatives qualified as cash flow hedges | ||||||||||||||
Window forward contracts | (173 | ) | — | — | Revenues (gains on window forward contracts–see Note 4 for additional details) | |||||||||
Retirement benefit plan items | ||||||||||||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | $ | 13,254 | $ | 20,381 | $ | 10,212 | See Note 10 for additional details | |||||||
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets | 28,584 | (25,139 | ) | 207,833 | See Note 10 for additional details | |||||||||
Total reclassifications | $ | 41,665 | $ | (4,758 | ) | $ | 218,045 |
2016 | 2015 | ||||||||||||||
(in thousands) | Pension benefits | Other benefits | Pension benefits | Other benefits | |||||||||||
HEI consolidated | |||||||||||||||
Benefit obligation, January 1 | $ | 1,798,030 | $ | 221,540 | $ | 1,847,228 | $ | 219,209 | |||||||
Service cost | 60,555 | 3,331 | 66,260 | 3,927 | |||||||||||
Interest cost | 81,549 | 9,670 | 76,960 | 9,011 | |||||||||||
Actuarial losses (gains) | 67,741 | 7,831 | (124,239 | ) | (2,911 | ) | |||||||||
Participants contributions | — | 1,405 | — | 1,274 | |||||||||||
Benefits paid and expenses | (72,381 | ) | (9,942 | ) | (68,179 | ) | (8,970 | ) | |||||||
Benefit obligation, December 31 | 1,935,494 | 233,835 | 1,798,030 | 221,540 | |||||||||||
Fair value of plan assets, January 1 | 1,271,474 | 170,687 | 1,266,060 | 180,332 | |||||||||||
Actual (loss) return on plan assets | 103,836 | 11,352 | (14,422 | ) | (2,866 | ) | |||||||||
Employer contributions | 65,463 | 42 | 86,802 | 917 | |||||||||||
Participants contributions | — | 1,405 | — | 1,274 | |||||||||||
Benefits paid and expenses | (71,072 | ) | (9,235 | ) | (66,966 | ) | (8,970 | ) | |||||||
Fair value of plan assets, December 31 | 1,369,701 | 174,251 | 1,271,474 | 170,687 | |||||||||||
Accrued benefit asset (liability), December 31 | $ | (565,793 | ) | $ | (59,584 | ) | $ | (526,556 | ) | $ | (50,853 | ) | |||
Other assets | $ | 13,477 | $ | — | $ | 12,509 | $ | — | |||||||
Defined benefit pension and other postretirement benefit plans liability | (579,270 | ) | (59,584 | ) | (539,065 | ) | (50,853 | ) | |||||||
Accrued benefit asset (liability), December 31 | $ | (565,793 | ) | $ | (59,584 | ) | $ | (526,556 | ) | $ | (50,853 | ) | |||
AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) | $ | 581,763 | $ | 32,550 | $ | 639,831 | $ | 20,933 | |||||||
Recognized during year – prior service credit (cost) | 57 | 1,793 | (4 | ) | 1,793 | ||||||||||
Recognized during year – net actuarial losses | (24,832 | ) | (804 | ) | (36,800 | ) | (1,796 | ) | |||||||
Occurring during year – net actuarial losses (gains) | 62,463 | 8,751 | (21,264 | ) | 11,620 | ||||||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 619,451 | 42,290 | 581,763 | 32,550 | |||||||||||
Cumulative impact of PUC D&Os | (576,933 | ) | (43,974 | ) | (538,784 | ) | (35,333 | ) | |||||||
AOCI debit/(credit), December 31 | $ | 42,518 | $ | (1,684 | ) | $ | 42,979 | $ | (2,783 | ) | |||||
Net actuarial loss | $ | 619,582 | $ | 52,792 | $ | 581,951 | $ | 44,845 | |||||||
Prior service gain | (131 | ) | (10,502 | ) | (188 | ) | (12,295 | ) | |||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 619,451 | 42,290 | 581,763 | 32,550 | |||||||||||
Cumulative impact of PUC D&Os | (576,933 | ) | (43,974 | ) | (538,784 | ) | (35,333 | ) | |||||||
AOCI debit/(credit), December 31 | 42,518 | (1,684 | ) | 42,979 | (2,783 | ) | |||||||||
Income taxes (benefits) | (16,746 | ) | 656 | (16,944 | ) | 1,084 | |||||||||
AOCI debit/(credit), net of taxes (benefits), December 31 | $ | 25,772 | $ | (1,028 | ) | $ | 26,035 | $ | (1,699 | ) | |||||
As of December 31, 2016 and 2015, the other postretirement benefit plans shown in the table above had ABOs in excess of plan assets. |
2016 | 2015 | ||||||||||||||
(in thousands) | Pension benefits | Other benefits | Pension benefits | Other benefits | |||||||||||
Hawaiian Electric consolidated | |||||||||||||||
Benefit obligation, January 1 | $ | 1,649,690 | $ | 213,990 | $ | 1,690,777 | $ | 211,760 | |||||||
Service cost | 58,796 | 3,284 | 64,262 | 3,870 | |||||||||||
Interest cost | 74,808 | 9,337 | 70,529 | 8,700 | |||||||||||
Actuarial losses (gains) | 63,121 | 7,545 | (114,286 | ) | (2,860 | ) | |||||||||
Participants contributions | — | 1,389 | — | 1,260 | |||||||||||
Benefits paid and expenses | (66,789 | ) | (9,822 | ) | (63,037 | ) | (8,858 | ) | |||||||
Transfers | — | — | 1,445 | 118 | |||||||||||
Benefit obligation, December 31 | 1,779,626 | 225,723 | 1,649,690 | 213,990 | |||||||||||
Fair value of plan assets, January 1 | 1,141,833 | 167,930 | 1,129,005 | 177,256 | |||||||||||
Actual (loss) return on plan assets | 93,441 | 11,168 | (10,646 | ) | (2,712 | ) | |||||||||
Employer contributions | 64,236 | 11 | 85,139 | 864 | |||||||||||
Participants contributions | — | 1,389 | — | 1,260 | |||||||||||
Benefits paid and expenses | (66,326 | ) | (9,115 | ) | (62,584 | ) | (8,858 | ) | |||||||
Other | — | — | 919 | 120 | |||||||||||
Fair value of plan assets, December 31 | 1,233,184 | 171,383 | 1,141,833 | 167,930 | |||||||||||
Accrued benefit asset (liability), December 31 | $ | (546,442 | ) | $ | (54,340 | ) | $ | (507,857 | ) | $ | (46,060 | ) | |||
Other liabilities (short-term) | (460 | ) | (596 | ) | (425 | ) | (518 | ) | |||||||
Defined benefit pension and other postretirement benefit plans liability | (545,982 | ) | (53,744 | ) | (507,432 | ) | (45,542 | ) | |||||||
Accrued benefit asset (liability), December 31 | $ | (546,442 | ) | $ | (54,340 | ) | $ | (507,857 | ) | $ | (46,060 | ) | |||
AOCI debit/(credit), January 1 (excluding impact of PUC D&Os) | $ | 541,118 | $ | 31,485 | $ | 595,103 | $ | 20,090 | |||||||
Recognized during year – prior service credit (cost) | (13 | ) | 1,803 | (40 | ) | 1,804 | |||||||||
Recognized during year – net actuarial losses | (22,693 | ) | (793 | ) | (33,371 | ) | (1,754 | ) | |||||||
Occurring during year – net actuarial losses (gains) | 61,313 | 8,472 | (20,574 | ) | 11,345 | ||||||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 579,725 | 40,967 | 541,118 | 31,485 | |||||||||||
Cumulative impact of PUC D&Os | (576,933 | ) | (43,974 | ) | (538,784 | ) | (35,333 | ) | |||||||
AOCI debit/(credit), December 31 | $ | 2,792 | $ | (3,007 | ) | $ | 2,334 | $ | (3,848 | ) | |||||
Net actuarial loss | $ | 579,691 | $ | 51,463 | $ | 541,071 | $ | 43,784 | |||||||
Prior service cost (gain) | 34 | (10,496 | ) | 47 | (12,299 | ) | |||||||||
AOCI debit/(credit) before cumulative impact of PUC D&Os, December 31 | 579,725 | 40,967 | 541,118 | 31,485 | |||||||||||
Cumulative impact of PUC D&Os | (576,933 | ) | (43,974 | ) | (538,784 | ) | (35,333 | ) | |||||||
AOCI debit/(credit), December 31 | 2,792 | (3,007 | ) | 2,334 | (3,848 | ) | |||||||||
Income taxes (benefits) | (1,087 | ) | 1,170 | (908 | ) | 1,497 | |||||||||
AOCI debit/(credit), net of taxes (benefits), December 31 | $ | 1,705 | $ | (1,837 | ) | $ | 1,426 | $ | (2,351 | ) |
Pension benefits1 | Other benefits2 | ||||||||||||||||||||
Investment policy | Investment policy | ||||||||||||||||||||
December 31 | 2016 | 2015 | Target | Range | 2016 | 2015 | Target | Range | |||||||||||||
Assets held by category | |||||||||||||||||||||
Equity securities managers | 71 | % | 70 | % | 70 | % | 65-75 | 70 | % | 70 | % | 70 | % | 65-75 | |||||||
Fixed income securities managers | 29 | 30 | 30 | 25-35 | 30 | 30 | 30 | 25-35 | |||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Pension benefits | Other benefits | ||||||||||||||||||||||||||||||
Fair value measurements using | Fair value measurements using | ||||||||||||||||||||||||||||||
(in millions) | December 31 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | December 31 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
2016 | |||||||||||||||||||||||||||||||
Equity securities | $ | 692 | $ | 692 | $ | — | $ | — | $ | 94 | $ | 94 | $ | — | $ | — | |||||||||||||||
Equity index funds | 129 | 129 | — | — | 17 | 17 | — | — | |||||||||||||||||||||||
Equity investments at net asset value (NAV) | 56 | — | — | — | 9 | — | — | — | |||||||||||||||||||||||
Total equity investments | 877 | 821 | — | — | 120 | 111 | — | — | |||||||||||||||||||||||
Fixed income securities and public mutual funds | 276 | 84 | 192 | — | 44 | 42 | 2 | — | |||||||||||||||||||||||
Fixed income investments at NAV | 180 | — | — | — | 4 | — | — | — | |||||||||||||||||||||||
Total fixed income investments | 456 | 84 | 192 | — | 48 | 42 | 2 | — | |||||||||||||||||||||||
Cash equivalents at NAV | 33 | — | — | — | 6 | — | — | — | |||||||||||||||||||||||
Total | $ | 1,366 | $ | 905 | $ | 192 | $ | — | $ | 174 | $ | 153 | $ | 2 | $ | — | |||||||||||||||
Cash, receivables and payables, net | 4 | — | |||||||||||||||||||||||||||||
Fair value of plan assets | $ | 1,370 | $ | 174 | |||||||||||||||||||||||||||
2015 | |||||||||||||||||||||||||||||||
Equity securities | $ | 640 | $ | 640 | $ | — | $ | — | $ | 92 | $ | 92 | $ | — | $ | — | |||||||||||||||
Equity index funds | 119 | 119 | — | — | 17 | 17 | — | — | |||||||||||||||||||||||
Equity investments at NAV | 46 | — | — | — | 9 | — | — | — | |||||||||||||||||||||||
Total equity investments | 805 | 759 | — | — | 118 | 109 | — | — | |||||||||||||||||||||||
Fixed income securities and public mutual funds | 260 | 85 | 175 | — | 44 | 42 | 2 | — | |||||||||||||||||||||||
Fixed income investments at NAV | 165 | — | — | — | 4 | — | — | — | |||||||||||||||||||||||
Total fixed income investments | 425 | 85 | 175 | — | 48 | 42 | 2 | — | |||||||||||||||||||||||
Cash equivalents at NAV | 38 | — | — | — | 5 | — | — | — | |||||||||||||||||||||||
Total | 1,268 | $ | 844 | $ | 175 | $ | — | 171 | $ | 151 | $ | 2 | $ | — | |||||||||||||||||
Cash, receivables and payables, net | 3 | — | |||||||||||||||||||||||||||||
Fair value of plan assets | $ | 1,271 | $ | 171 |
Pension benefits | Other benefits | ||||||||||||||
Measured at net asset value | December 31 | Redemption frequency | Redemption notice period | December 31 | Redemption frequency | Redemption notice period | |||||||||
(in millions) | |||||||||||||||
2016 | |||||||||||||||
Non U.S. equity funds (a) | 56 | Daily - Quarterly | 0 - 30 days | 9 | Monthly -Quarterly | 10-30 days | |||||||||
Fixed income investments (b) | 180 | Monthly | 10 days | 4 | Monthly | 10 days | |||||||||
Cash equivalents (c) | 33 | Daily | 0-1 day | 6 | Daily | 0-1 day | |||||||||
$ | 269 | $ | 19 | ||||||||||||
2015 | |||||||||||||||
Non U.S. equity funds (a) | 46 | Daily - Quarterly | 0 - 30 days | 9 | Monthly - Quarterly | 10-30 days | |||||||||
Fixed income investments (b) | 165 | Monthly | 10 days | 4 | Monthly | 10 days | |||||||||
Cash equivalents (c) | 38 | Daily | 0-1 day | 5 | Daily | 0-1 day | |||||||||
$ | 249 | $ | 18 |
Pension benefits | Other benefits | ||||||||||||||||
December 31 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||
Benefit obligation | |||||||||||||||||
Discount rate | 4.26 | % | 4.60 | % | 4.22 | % | 4.22 | % | 4.57 | % | 4.17 | % | |||||
Rate of compensation increase | 3.5 | 3.5 | 3.5 | NA | NA | NA | |||||||||||
Net periodic pension/benefit cost (years ended) | |||||||||||||||||
Discount rate | 4.60 | 4.22 | 5.09 | 4.57 | 4.17 | 5.03 | |||||||||||
Expected return on plan assets1 | 7.75 | 7.75 | 7.75 | 7.75 | 7.75 | 7.75 | |||||||||||
Rate of compensation increase | 3.5 | 3.5 | 3.5 | NA | NA | NA |
Pension benefits | Other benefits | ||||||||||||||||||||||
(in thousands) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||
HEI consolidated | |||||||||||||||||||||||
Service cost | $ | 60,555 | $ | 66,260 | $ | 49,264 | $ | 3,331 | $ | 3,927 | $ | 3,490 | |||||||||||
Interest cost | 81,549 | 76,960 | 72,202 | 9,670 | 9,011 | 8,550 | |||||||||||||||||
Expected return on plan assets | (98,559 | ) | (88,554 | ) | (81,355 | ) | (12,273 | ) | (11,664 | ) | (10,902 | ) | |||||||||||
Amortization of net prior service (gain) cost | (57 | ) | 4 | 88 | (1,793 | ) | (1,793 | ) | (1,793 | ) | |||||||||||||
Amortization of net actuarial losses (gains) | 24,832 | 36,800 | 20,304 | 804 | 1,796 | (11 | ) | ||||||||||||||||
Net periodic pension/benefit cost | 68,320 | 91,470 | 60,503 | (261 | ) | 1,277 | (666 | ) | |||||||||||||||
Impact of PUC D&Os | (18,117 | ) | (40,011 | ) | (13,324 | ) | 1,343 | (240 | ) | 1,976 | |||||||||||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | 50,203 | 51,459 | 47,179 | 1,082 | 1,037 | 1,310 | |||||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||||||||
Service cost | $ | 58,796 | $ | 64,262 | $ | 47,597 | $ | 3,284 | $ | 3,870 | $ | 3,392 | |||||||||||
Interest cost | 74,808 | 70,529 | 65,979 | 9,337 | 8,700 | 8,234 | |||||||||||||||||
Expected return on plan assets | (91,633 | ) | (82,541 | ) | (72,661 | ) | (12,096 | ) | (11,495 | ) | (10,739 | ) | |||||||||||
Amortization of net prior service (gain) cost | 13 | 40 | 62 | (1,803 | ) | (1,804 | ) | (1,804 | ) | ||||||||||||||
Amortization of net actuarial losses | 22,693 | 33,371 | 18,459 | 793 | 1,754 | — | |||||||||||||||||
Net periodic pension/benefit cost | 64,677 | 85,661 | 59,436 | (485 | ) | 1,025 | (917 | ) | |||||||||||||||
Impact of PUC D&Os | (18,117 | ) | (40,011 | ) | (13,324 | ) | 1,343 | (240 | ) | 1,976 | |||||||||||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | $ | 46,560 | $ | 45,650 | $ | 46,112 | $ | 858 | $ | 785 | $ | 1,059 |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||
(in millions) | Pension benefits | Other benefits | Pension benefits | Other benefits | |||||||||||
Estimated prior service credit | $ | (0.1 | ) | $ | (1.8 | ) | $ | — | $ | (1.8 | ) | ||||
Net actuarial loss | 26.1 | 1.5 | 24.0 | 1.4 |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||
December 31 | 2016 | 2015 | 2016 | 2015 | |||||||||||
(in billions) | |||||||||||||||
Defined benefit plans - ABOs | $ | 1.7 | $ | 1.6 | $ | 1.5 | $ | 1.4 | |||||||
Defined benefit plans with ABO in excess of plan assets | |||||||||||||||
ABOs | 1.6 | 1.5 | 1.5 | 1.4 | |||||||||||
Plan assets | 1.3 | 1.2 | 1.2 | 1.1 | |||||||||||
Defined benefit plans with PBOs in excess of plan assets | |||||||||||||||
PBOs | 1.8 | 1.7 | 1.8 | 1.6 | |||||||||||
Plan assets | 1.3 | 1.2 | 1.2 | 1.1 |
(in millions) | 2016 | 2015 | 2014 | ||||||||
HEI consolidated | |||||||||||
Share-based compensation expense1 | $ | 4.8 | $ | 6.5 | $ | 9.3 | |||||
Income tax benefit | 1.6 | 2.3 | 3.4 | ||||||||
Hawaiian Electric consolidated | |||||||||||
Share-based compensation expense1 | 1.4 | 1.9 | 3.1 | ||||||||
Income tax benefit | 0.5 | 0.7 | 1.2 |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Shares granted | 19,846 | 28,246 | 33,170 | ||||||||
Fair value | $ | 0.6 | $ | 0.8 | $ | 0.8 | |||||
Income tax benefit | 0.2 | 0.3 | 0.3 |
2015 | 2014 | ||||||||||||
Shares | (1) | Shares | (1) | ||||||||||
Outstanding, January 1 | 80,000 | $ | 26.18 | 164,000 | $ | 26.12 | |||||||
Granted | — | — | — | — | |||||||||
Exercised | (80,000 | ) | 26.18 | (22,000 | ) | 26.18 | |||||||
Forfeited | — | — | (62,000 | ) | 26.02 | ||||||||
Expired | — | — | — | — | |||||||||
Outstanding, December 31 | — | $ | — | 80,000 | $ | 26.18 | |||||||
Exercisable, December 31 | — | $ | — | 80,000 | $ | 26.18 |
(in thousands) | 2015 | 2014 | |||||
Intrinsic value of shares exercised 1 | $ | 502 | $ | 29 | |||
Tax benefit realized for the deduction of exercises | 82 | 11 |
2014 | |||||||
Shares | (1) | ||||||
Outstanding, January 1 | 4,503 | $ | 22.21 | ||||
Granted | — | — | |||||
Vested | (4,503 | ) | 22.21 | ||||
Forfeited | — | — | |||||
Outstanding, December 31 | — | $ | — |
2016 | 2015 | 2014 | |||||||||||||||||||||
Shares | (1) | Shares | (1) | Shares | (1) | ||||||||||||||||||
Outstanding, January 1 | 210,634 | $ | 28.82 | 261,235 | $ | 25.77 | 288,151 | $ | 25.17 | ||||||||||||||
Granted | 114,431 | 29.70 | 85,772 | 33.69 | 117,786 | 25.17 | |||||||||||||||||
Vested | (85,003 | ) | 27.84 | (102,173 | ) | 25.67 | (144,702 | ) | 24.09 | ||||||||||||||
Forfeited | (19,379 | ) | 29.82 | (34,200 | ) | 27.09 | — | — | |||||||||||||||
Outstanding, December 31 | 220,683 | $ | 29.57 | 210,634 | $ | 28.82 | 261,235 | $ | 25.77 | ||||||||||||||
Total weighted-average grant-date fair value of shares granted ($ millions) | $ | 3.4 | $ | 2.9 | $ | 3.0 |
2016 | 2015 | 2014 | |||||||||||||||||||||
Shares | (1) | Shares | (1) | Shares | (1) | ||||||||||||||||||
Outstanding, January 1 | 162,500 | $ | 27.66 | 257,956 | $ | 28.45 | 232,127 | $ | 32.88 | ||||||||||||||
Granted | — | — | — | — | 97,524 | 22.95 | |||||||||||||||||
Vested (lapsed because goal not met) | (78,553 | ) | 32.69 | (75,915 | ) | 30.71 | (70,189 | ) | 35.46 | ||||||||||||||
Forfeited | (841 | ) | 22.95 | (19,541 | ) | 26.25 | (1,506 | ) | 28.32 | ||||||||||||||
Outstanding, December 31 | 83,106 | $ | 22.95 | 162,500 | $ | 27.66 | 257,956 | $ | 28.45 | ||||||||||||||
Total weighted-average grant-date fair value of shares granted ($ millions) | $ | — | $ | — | $ | 2.2 |
2014 | ||||
Risk-free interest rate | 0.66 | % | ||
Expected life in years | 3 | |||
Expected volatility | 17.8 | % | ||
Range of expected volatility for Peer Group | 12.4% to 23.3% | |||
Grant date fair value (per share) | $ | 22.95 |
2016 | 2015 | 2014 | |||||||||||||||||||||
Shares | (1) | Shares | (1) | Shares | (1) | ||||||||||||||||||
Outstanding, January 1 | 222,647 | $ | 26.02 | 364,731 | $ | 26.01 | 296,843 | $ | 26.14 | ||||||||||||||
Granted | — | — | — | — | 129,603 | 25.18 | |||||||||||||||||
Vested and settled | (109,097 | ) | 26.89 | (121,249 | ) | 26.05 | (65,089 | ) | 24.95 | ||||||||||||||
Increase above target (cancelled) | (1,989 | ) | 25.26 | 3,412 | 26.89 | 4,949 | 26.70 | ||||||||||||||||
Forfeited | (1,745 | ) | 25.19 | (24,247 | ) | 25.82 | (1,575 | ) | 26.07 | ||||||||||||||
Outstanding, December 31 | 109,816 | $ | 25.18 | 222,647 | $ | 26.02 | 364,731 | $ | 26.01 | ||||||||||||||
Total weighted-average grant-date fair value of shares granted (at target performance levels) ($ millions) | $ | — | $ | — | $ | 3.3 |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
Years ended December 31 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Federal | |||||||||||||||||||||||
Current | $ | 59,873 | $ | 44,343 | $ | (8,959 | ) | $ | 952 | $ | — | $ | 1,108 | ||||||||||
Deferred | 43,666 | 36,664 | 91,412 | 70,513 | 68,757 | 68,775 | |||||||||||||||||
Deferred tax credits, net | 268 | 318 | — | 268 | 318 | — | |||||||||||||||||
103,807 | 81,325 | 82,453 | 71,733 | 69,075 | 69,883 | ||||||||||||||||||
State | |||||||||||||||||||||||
Current | 16,473 | 2,402 | (5,793 | ) | 9,232 | (1,048 | ) | (9,436 | ) | ||||||||||||||
Deferred | 3,452 | 4,768 | 12,813 | 3,873 | 6,869 | 14,172 | |||||||||||||||||
Deferred tax credits, net | (37 | ) | 4,526 | 6,106 | (37 | ) | 4,526 | 6,106 | |||||||||||||||
19,888 | 11,696 | 13,126 | 13,068 | 10,347 | 10,842 | ||||||||||||||||||
Total | $ | 123,695 | $ | 93,021 | $ | 95,579 | $ | 84,801 | $ | 79,422 | $ | 80,725 |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
Years ended December 31 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Amount at the federal statutory income tax rate | $ | 130,844 | $ | 89,176 | $ | 92,959 | $ | 80,190 | $ | 75,996 | $ | 77,126 | |||||||||||
Increase (decrease) resulting from: | |||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 13,915 | 8,097 | 9,073 | 8,494 | 6,726 | 7,047 | |||||||||||||||||
Other, net | (21,064 | ) | (4,252 | ) | (6,453 | ) | (3,883 | ) | (3,300 | ) | (3,448 | ) | |||||||||||
Total | $ | 123,695 | $ | 93,021 | $ | 95,579 | $ | 84,801 | $ | 79,422 | $ | 80,725 | |||||||||||
Effective income tax rate | 33.1 | % | 36.5 | % | 36.0 | % | 37.0 | % | 36.6 | % | 36.6 | % |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||
December 31 | 2016 | 2015 | 2016 | 2015 | |||||||||||
(in thousands) | |||||||||||||||
Deferred tax assets | |||||||||||||||
Net operating loss1 | $ | — | $ | — | $ | 9,158 | $ | 37,283 | |||||||
Allowance for bad debts | 24,500 | 21,781 | 2,364 | 1,852 | |||||||||||
Other | 47,201 | 43,089 | 18,720 | 18,386 | |||||||||||
Total deferred tax assets | 71,701 | 64,870 | 30,242 | 57,521 | |||||||||||
Deferred tax liabilities | |||||||||||||||
Property, plant and equipment related | 538,484 | 492,441 | 536,885 | 489,884 | |||||||||||
Repairs deduction | 103,782 | 104,081 | 103,782 | 104,081 | |||||||||||
Regulatory assets, excluding amounts attributable to property, plant and equipment | 35,107 | 34,261 | 35,107 | 34,261 | |||||||||||
Deferred RAM and RBA revenues | 26,053 | 26,400 | 26,053 | 26,400 | |||||||||||
Retirement benefits | 48,400 | 42,006 | 51,445 | 44,991 | |||||||||||
Other | 48,681 | 46,558 | 10,629 | 12,710 | |||||||||||
Total deferred tax liabilities | 800,507 | 745,747 | 763,901 | 712,327 | |||||||||||
Net deferred income tax liability | $ | 728,806 | $ | 680,877 | $ | 733,659 | $ | 654,806 |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
(in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||
Unrecognized tax benefits, January 1 | $ | 3.6 | $ | — | $ | 0.9 | $ | 3.6 | $ | — | 0.5 | ||||||||||||
Reductions based on tax positions taken during the year | (0.1 | ) | — | — | (0.1 | ) | — | — | |||||||||||||||
Additions for tax positions of prior years | 0.3 | 3.6 | 0.1 | 0.3 | 3.6 | 0.1 | |||||||||||||||||
Settlements | (1.0 | ) | — | — | (0.6 | ) | |||||||||||||||||
Unrecognized tax benefits, December 31 | $ | 3.8 | $ | 3.6 | $ | — | $ | 3.8 | $ | 3.6 | $ | — |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
(in millions) | |||||||||||
Supplemental disclosures of cash flow information | |||||||||||
HEI consolidated | |||||||||||
Interest paid to non-affiliates | $ | 84 | $ | 83 | $ | 84 | |||||
Income taxes paid | 55 | 75 | 47 | ||||||||
Income taxes refunded | 45 | 55 | 24 | ||||||||
Hawaiian Electric consolidated | |||||||||||
Interest paid to non-affiliates | 62 | 61 | 61 | ||||||||
Income taxes paid | 1 | 13 | 6 | ||||||||
Income taxes refunded | 20 | 12 | 8 | ||||||||
Supplemental disclosures of noncash activities | |||||||||||
HEI consolidated | |||||||||||
Property, plant and equipment–change in unpaid invoices and accruals (investing) | 14 | 5 | 43 | ||||||||
Common stock dividends reinvested in HEI common stock (financing) 1 | 17 | — | — | ||||||||
Loans transferred from held for investment to held for sale (investing) | 24 | — | — | ||||||||
Real estate acquired in settlement of loans (investing) | 1 | 1 | 3 | ||||||||
Real estate transferred from property, plant and equipment to other assets held-for-sale (investing) | 1 | 5 | — | ||||||||
Obligations to fund low income housing investments, net (operating) | 14 | 4 | 14 | ||||||||
Hawaiian Electric consolidated | |||||||||||
Electric utility property, plant and equipment | |||||||||||
AFUDC-equity (operating) | 8 | 7 | 7 | ||||||||
Estimated fair value of noncash contributions in aid of construction (investing) | 28 | 3 | 3 | ||||||||
Change in unpaid invoices and accruals (investing) | 14 | 5 | 40 | ||||||||
Refinancing of long-term debt (financing) | — | 47 | — |
Level 1: | Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. |
Level 2: | Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. |
Level 3: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
• | With respect to Topic 326, Financial Instruments - Credit Losses, ASU No. 2019-04 allows entities to measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets, or to make an accounting policy election not to measure an allowance for credit losses on accrued interest receivable amounts if an entity writes off the uncollectible accrued interest receivable balance in a timely manner and makes certain disclosures. ASU No. 2019-04 also allows an entity to make an accounting policy election regarding the presentation and disclosure of accrued interest receivables and the related allowance for credit losses for those accrued interest receivables. ASU No. 2019-04 also clarifies certain issues related |
• | With respect to Topic 815, Derivatives and Hedging, ASU No. 2019-04 provides amendments, among others, that address partial-term fair value hedges, fair value hedge basis adjustments, and certain transition requirements. |
• | With respect to Topic 825, Financial Instruments, ASU No. 2019-04 clarifies the scope of the guidance and disclosure requirements with respect to recognizing and measuring financial instruments. |
Electric utility |
Bank (HEI only) |
Years ended December 31 | 2019 | 2018 | 2017 | ||||||||
(in millions) | |||||||||||
Amounts in income taxes related to low-income housing tax credit investments | |||||||||||
Amortization recognized in the provision for income taxes | $ | (7.9 | ) | $ | (7.7 | ) | $ | (7.4 | ) | ||
Tax credits and other tax benefits recognized in the provision for income taxes | 11.9 | 10.9 | 10.7 | ||||||||
Net benefit to income tax expense | $ | 4.0 | $ | 3.2 | $ | 3.3 |
Note 2 · Segment financial information |
Electric utility |
Bank |
Other |
(in thousands) | Electric utility | Bank | Other | Total | |||||||||||
2019 | |||||||||||||||
Revenues from external customers | $ | 2,545,865 | $ | 328,570 | $ | 166 | $ | 2,874,601 | |||||||
Intersegment revenues (eliminations) | 77 | — | (77 | ) | — | ||||||||||
Revenues | 2,545,942 | 328,570 | 89 | 2,874,601 | |||||||||||
Depreciation and amortization | 245,362 | 28,675 | 4,076 | 278,113 | |||||||||||
Interest expense, net | 70,842 | 18,440 | 20,057 | 109,339 | |||||||||||
Income (loss) before income taxes | 197,140 | 112,034 | (37,765 | ) | 271,409 | ||||||||||
Income taxes (benefit) | 38,305 | 23,061 | (9,729 | ) | 51,637 | ||||||||||
Net income (loss) | 158,835 | 88,973 | (28,036 | ) | 219,772 | ||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | ||||||||||
Net income (loss) for common stock | 156,840 | 88,973 | (27,931 | ) | 217,882 | ||||||||||
Capital expenditures | 419,898 | 24,175 | 13,447 | 457,520 | |||||||||||
Assets (at December 31, 2019) | 6,388,682 | 7,233,017 | 123,552 | 13,745,251 | |||||||||||
2018 | |||||||||||||||
Revenues from external customers | $ | 2,546,472 | $ | 314,275 | $ | 102 | $ | 2,860,849 | |||||||
Intersegment revenues (eliminations) | 53 | — | (53 | ) | — | ||||||||||
Revenues | 2,546,525 | 314,275 | 49 | 2,860,849 | |||||||||||
Depreciation and amortization | 230,228 | 21,443 | 3,958 | 255,629 | |||||||||||
Interest expense, net | 73,348 | 15,539 | 15,329 | 104,216 | |||||||||||
Income (loss) before income taxes | 180,426 | 106,578 | (32,543 | ) | 254,461 | ||||||||||
Income taxes (benefit) | 34,778 | 24,069 | (8,050 | ) | 50,797 | ||||||||||
Net income (loss) | 145,648 | 82,509 | (24,493 | ) | 203,664 | ||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | ||||||||||
Net income (loss) for common stock | 143,653 | 82,509 | (24,388 | ) | 201,774 | ||||||||||
Capital expenditures1 | 415,264 | 72,666 | 18,840 | 537,369 | |||||||||||
Assets (at December 31, 2018) | 5,967,503 | 7,027,894 | 108,654 | 13,104,051 | |||||||||||
2017 | |||||||||||||||
Revenues from external customers | $ | 2,257,455 | $ | 297,640 | $ | 530 | $ | 2,555,625 | |||||||
Intersegment revenues (eliminations) | 111 | — | (111 | ) | — | ||||||||||
Revenues | 2,257,566 | 297,640 | 419 | 2,555,625 | |||||||||||
Depreciation and amortization | 201,282 | 19,416 | 1,300 | 221,998 | |||||||||||
Interest expense, net | 69,637 | 12,156 | 9,335 | 91,128 | |||||||||||
Income (loss) before income taxes | 205,145 | 98,716 | (27,281 | ) | 276,580 | ||||||||||
Income taxes (benefit) | 83,199 | 31,719 | (5,525 | ) | 109,393 | ||||||||||
Net income (loss) | 121,946 | 66,997 | (21,756 | ) | 167,187 | ||||||||||
Preferred stock dividends of subsidiaries | 1,995 | — | (105 | ) | 1,890 | ||||||||||
Net income (loss) for common stock | 119,951 | 66,997 | (21,651 | ) | 165,297 | ||||||||||
Capital expenditures1 | 376,865 | 53,272 | 317 | 495,187 | |||||||||||
Assets (at December 31, 2017) | 5,630,613 | 6,798,659 | 104,888 | 12,534,160 |
1 | Contributions in aid of construction balances are included in capital expenditures. |
Note 3 · Electric utility segment |
December 31 | 2019 | 2018 | |||||
(in thousands) | |||||||
Retirement benefit plans (balance primarily varies with plans’ funded statuses) | $ | 554,485 | $ | 624,126 | |||
Income taxes (1-55 years) | 102,612 | 114,076 | |||||
Decoupling revenue balancing account and RAM (1-2 years) | — | 49,560 | |||||
Unamortized expense and premiums on retired debt and equity issuances (1-20 years; 1-19 years remaining) | 10,228 | 10,065 | |||||
Vacation earned, but not yet taken (1 year) | 12,535 | 10,820 | |||||
Other (1-39 years remaining) | 35,220 | 24,779 | |||||
Total regulatory assets | $ | 715,080 | $ | 833,426 | |||
Included in: | |||||||
Current assets | $ | 30,710 | $ | 71,016 | |||
Long-term assets | 684,370 | 762,410 | |||||
Total regulatory assets | $ | 715,080 | $ | 833,426 |
December 31 | 2019 | 2018 | |||||
(in thousands) | |||||||
Cost of removal in excess of salvage value (1-60 years) | $ | 521,977 | $ | 491,006 | |||
Income taxes (1-55 years) | 386,990 | 413,339 | |||||
Decoupling revenue balancing account and RAM (1-2 years) | 16,370 | — | |||||
Retirement benefit plans (balance primarily varies with plans’ funded statuses) | 21,707 | 19,129 | |||||
Other (1-19 years remaining) | 25,266 | 26,762 | |||||
Total regulatory liabilities | $ | 972,310 | $ | 950,236 | |||
Included in: | |||||||
Current liabilities | $ | 30,724 | $ | 17,977 | |||
Long-term liabilities | 941,586 | 932,259 | |||||
Total regulatory liabilities | $ | 972,310 | $ | 950,236 |
December 31, 2019 | Voluntary liquidation price | Redemption price | |||||
Series | |||||||
C, D, E, H, J and K (Hawaiian Electric) | $ | 20 | $ | 21 | |||
I (Hawaiian Electric) | 20 | 20 | |||||
G (Hawaii Electric Light) | 100 | 100 | |||||
H (Maui Electric) | 100 | 100 |
Years ended December 31 | 2019 | 2018 | 2017 | |||||||||
(in millions) | ||||||||||||
Kalaeloa | $ | 214 | $ | 216 | $ | 180 | ||||||
AES Hawaii | 139 | 140 | 140 | |||||||||
HPOWER | 76 | 69 | 67 | |||||||||
Puna Geothermal Venture | — | 15 | 38 | |||||||||
Hamakua Energy | 68 | 56 | 35 | |||||||||
Wind IPPs | 95 | 107 | 97 | |||||||||
Solar IPPs | 36 | 29 | 27 | |||||||||
Other IPPs1 | 5 | 7 | 3 | |||||||||
Total IPPs | $ | 633 | $ | 639 | $ | 587 |
(in thousands) | 2019 | 2018 | |||||
Balance, January 1 | $ | 8,426 | $ | 6,035 | |||
Accretion expense | 312 | 282 | |||||
Liabilities incurred | 1,594 | 1,058 | |||||
Liabilities settled | (8 | ) | (74 | ) | |||
Revisions in estimated cash flows | — | 1,125 | |||||
Balance, December 31 | $ | 10,324 | $ | 8,426 |
(in millions) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Total | ||||||||||||
2019 Annual incremental RAM adjusted revenues,net of changes in Tax Act adjustment* | $ | 6.5 | $ | 1.1 | $ | 5.4 | $ | 13.0 | ||||||||
Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery | (12.2 | ) | (2.0 | ) | 0.8 | (13.4 | ) | |||||||||
Performance Incentive Mechanisms (net) | (1.3 | ) | — | (0.4 | ) | (1.7 | ) | |||||||||
Net annual incremental amount to be collected (refunded) under the tariffs | $ | (7.0 | ) | $ | (0.9 | ) | $ | 5.8 | $ | (2.1 | ) |
* | The 2017 Tax Cuts and Jobs Act (the Tax Act) had two incremental impacts in 2019. First, the 2019 RAM calculation for all of the Utilities incorporated additional amortization of the regulatory liability associated with certain deferred taxes. Secondly, Maui Electric incorporated a $2.8 million adjustment in its 2018 annual decoupling filing related to the Tax Act which is not recurring in 2019. |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Revenues | $ | 1,803,698 | 364,590 | 378,202 | — | (548 | ) | [1] | $ | 2,545,942 | ||||||||||
Expenses | ||||||||||||||||||||
Fuel oil | 494,728 | 84,565 | 141,416 | — | — | 720,709 | ||||||||||||||
Purchased power | 494,215 | 90,989 | 48,052 | — | — | 633,256 | ||||||||||||||
Other operation and maintenance | 319,771 | 76,091 | 85,875 | — | — | 481,737 | ||||||||||||||
Depreciation | 143,470 | 41,812 | 30,449 | — | — | 215,731 | ||||||||||||||
Taxes, other than income taxes | 170,979 | 33,787 | 35,365 | — | — | 240,131 | ||||||||||||||
Total expenses | 1,623,163 | 327,244 | 341,157 | — | — | 2,291,564 | ||||||||||||||
Operating income | 180,535 | 37,346 | 37,045 | — | (548 | ) | 254,378 | |||||||||||||
Allowance for equity funds used during construction | 9,955 | 816 | 1,216 | — | — | 11,987 | ||||||||||||||
Equity in earnings of subsidiaries | 43,167 | — | — | — | (43,167 | ) | [2] | — | ||||||||||||
Retirement defined benefits expense—other than service costs | (2,287 | ) | (422 | ) | (127 | ) | — | — | (2,836 | ) | ||||||||||
Interest expense and other charges, net | (51,199 | ) | (10,741 | ) | (9,450 | ) | — | 548 | [1] | (70,842 | ) | |||||||||
Allowance for borrowed funds used during construction | 3,666 | 342 | 445 | — | — | 4,453 | ||||||||||||||
Income before income taxes | 183,837 | 27,341 | 29,129 | — | (43,167 | ) | 197,140 | |||||||||||||
Income taxes | 25,917 | 5,990 | 6,398 | — | — | 38,305 | ||||||||||||||
Net income | 157,920 | 21,351 | 22,731 | — | (43,167 | ) | 158,835 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | ||||||||||||||
Net income attributable to Hawaiian Electric | 157,920 | 20,817 | 22,350 | — | (43,167 | ) | 157,920 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | ||||||||||||||
Net income for common stock | $ | 156,840 | 20,817 | 22,350 | — | (43,167 | ) | $ | 156,840 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Net income for common stock | $ | 156,840 | 20,817 | 22,350 | — | (43,167 | ) | $ | 156,840 | |||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||
Net gains (losses) arising during the period, net of taxes | 5,249 | 373 | (204 | ) | — | (169 | ) | [1] | 5,249 | |||||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 9,550 | 1,455 | 1,182 | — | (2,637 | ) | [1] | 9,550 | ||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (16,177 | ) | (1,840 | ) | (1,152 | ) | — | 2,992 | [1] | (16,177 | ) | |||||||||
Other comprehensive loss, net of tax benefits | (1,378 | ) | (12 | ) | (174 | ) | — | 186 | (1,378 | ) | ||||||||||
Comprehensive income attributable to common shareholder | $ | 155,462 | 20,805 | 22,176 | — | (42,981 | ) | $ | 155,462 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Revenues | $ | 1,802,550 | 375,493 | 368,700 | — | (218 | ) | [1] | $ | 2,546,525 | ||||||||||
Expenses | ||||||||||||||||||||
Fuel oil | 523,706 | 90,792 | 146,030 | — | — | 760,528 | ||||||||||||||
Purchased power | 494,450 | 95,838 | 49,019 | — | — | 639,307 | ||||||||||||||
Other operation and maintenance | 313,346 | 70,396 | 77,749 | — | — | 461,491 | ||||||||||||||
Depreciation | 137,410 | 40,235 | 25,981 | — | — | 203,626 | ||||||||||||||
Taxes, other than income taxes | 170,363 | 34,850 | 34,699 | — | — | 239,912 | ||||||||||||||
Total expenses | 1,639,275 | 332,111 | 333,478 | — | — | 2,304,864 | ||||||||||||||
Operating income | 163,275 | 43,382 | 35,222 | — | (218 | ) | 241,661 | |||||||||||||
Allowance for equity funds used during construction | 9,208 | 478 | 1,191 | — | — | 10,877 | ||||||||||||||
Equity in earnings of subsidiaries | 45,393 | — | — | — | (45,393 | ) | [2] | — | ||||||||||||
Retirement defined benefits expense—other than service costs | (2,649 | ) | (417 | ) | (565 | ) | — | — | (3,631 | ) | ||||||||||
Interest expense and other charges, net | (52,180 | ) | (11,836 | ) | (9,550 | ) | — | 218 | [1] | (73,348 | ) | |||||||||
Allowance for borrowed funds used during construction | 4,019 | 276 | 572 | — | — | 4,867 | ||||||||||||||
Income before income taxes | 167,066 | 31,883 | 26,870 | — | (45,393 | ) | 180,426 | |||||||||||||
Income taxes | 22,333 | 6,868 | 5,577 | — | — | 34,778 | ||||||||||||||
Net income | 144,733 | 25,015 | 21,293 | — | (45,393 | ) | 145,648 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | ||||||||||||||
Net income attributable to Hawaiian Electric | 144,733 | 24,481 | 20,912 | — | (45,393 | ) | 144,733 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | ||||||||||||||
Net income for common stock | $ | 143,653 | 24,481 | 20,912 | — | (45,393 | ) | $ | 143,653 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Net income for common stock | $ | 143,653 | 24,481 | 20,912 | — | (45,393 | ) | $ | 143,653 | |||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||
Net losses arising during the period, net of tax benefits | (26,019 | ) | (6,090 | ) | (5,004 | ) | — | 11,094 | [1] | (26,019 | ) | |||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 19,012 | 2,819 | 2,423 | — | (5,242 | ) | [1] | 19,012 | ||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | 8,325 | 3,305 | 2,788 | — | (6,093 | ) | [1] | 8,325 | ||||||||||||
Other comprehensive income, net of taxes | 1,318 | 34 | 207 | — | (241 | ) | 1,318 | |||||||||||||
Comprehensive income attributable to common shareholder | $ | 144,971 | 24,515 | 21,119 | — | (45,634 | ) | $ | 144,971 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Revenues | $ | 1,598,504 | 333,467 | 325,678 | — | (83 | ) | [1] | $ | 2,257,566 | ||||||||||
Expenses | ||||||||||||||||||||
Fuel oil | 408,204 | 63,894 | 115,670 | — | — | 587,768 | ||||||||||||||
Purchased power | 454,189 | 87,772 | 44,673 | — | — | 586,634 | ||||||||||||||
Other operation and maintenance | 274,391 | 66,184 | 71,332 | — | — | 411,907 | ||||||||||||||
Depreciation | 130,889 | 38,741 | 23,154 | — | — | 192,784 | ||||||||||||||
Taxes, other than income taxes | 152,933 | 31,184 | 30,832 | — | — | 214,949 | ||||||||||||||
Total expenses | 1,420,606 | 287,775 | 285,661 | — | — | 1,994,042 | ||||||||||||||
Operating income | 177,898 | 45,692 | 40,017 | — | (83 | ) | 263,524 | |||||||||||||
Allowance for equity funds used during construction | 10,896 | 554 | 1,033 | — | — | 12,483 | ||||||||||||||
Equity in earnings of subsidiaries | 38,057 | — | — | — | (38,057 | ) | [2] | — | ||||||||||||
Retirement defined benefits expense—other than service costs | (5,049 | ) | (93 | ) | (861 | ) | — | — | (6,003 | ) | ||||||||||
Interest expense and other charges, net | (48,277 | ) | (11,799 | ) | (9,644 | ) | — | 83 | [1] | (69,637 | ) | |||||||||
Allowance for borrowed funds used during construction | 4,089 | 238 | 451 | — | — | 4,778 | ||||||||||||||
Income before income taxes | 177,614 | 34,592 | 30,996 | — | (38,057 | ) | 205,145 | |||||||||||||
Income taxes | 56,583 | 13,912 | 12,704 | — | — | 83,199 | ||||||||||||||
Net income | 121,031 | 20,680 | 18,292 | — | (38,057 | ) | 121,946 | |||||||||||||
Preferred stock dividends of subsidiaries | — | 534 | 381 | — | — | 915 | ||||||||||||||
Net income attributable to Hawaiian Electric | 121,031 | 20,146 | 17,911 | — | (38,057 | ) | 121,031 | |||||||||||||
Preferred stock dividends of Hawaiian Electric | 1,080 | — | — | — | — | 1,080 | ||||||||||||||
Net income for common stock | $ | 119,951 | 20,146 | 17,911 | — | (38,057 | ) | $ | 119,951 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Net income for common stock | $ | 119,951 | 20,146 | 17,911 | — | (38,057 | ) | $ | 119,951 | |||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||
Derivatives qualified as cash flow hedges: | ||||||||||||||||||||
Reclassification adjustment to net income, net of tax benefits | 454 | — | — | — | — | 454 | ||||||||||||||
Retirement benefit plans: | ||||||||||||||||||||
Net gains arising during the period, net of taxes | 63,105 | 3,093 | 7,329 | — | (10,422 | ) | [1] | 63,105 | ||||||||||||
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits | 14,477 | 1,903 | 1,619 | — | (3,522 | ) | [1] | 14,477 | ||||||||||||
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes | (78,724 | ) | (4,994 | ) | (9,003 | ) | — | 13,997 | [1] | (78,724 | ) | |||||||||
Other comprehensive income (loss), net of taxes | (688 | ) | 2 | (55 | ) | — | 53 | (688 | ) | |||||||||||
Comprehensive income attributable to common shareholder | $ | 119,263 | 20,148 | 17,856 | — | (38,004 | ) | $ | 119,263 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Assets | ||||||||||||||||||||
Property, plant and equipment | ||||||||||||||||||||
Utility property, plant and equipment | ||||||||||||||||||||
Land | $ | 42,598 | 5,606 | 3,612 | — | — | $ | 51,816 | ||||||||||||
Plant and equipment | 4,765,362 | 1,313,727 | 1,161,199 | — | — | 7,240,288 | ||||||||||||||
Less accumulated depreciation | (1,591,241 | ) | (574,615 | ) | (524,301 | ) | — | — | (2,690,157 | ) | ||||||||||
Construction in progress | 165,137 | 9,993 | 17,944 | — | — | 193,074 | ||||||||||||||
Utility property, plant and equipment, net | 3,381,856 | 754,711 | 658,454 | — | — | 4,795,021 | ||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 5,310 | 114 | 1,532 | — | — | 6,956 | ||||||||||||||
Total property, plant and equipment, net | 3,387,166 | 754,825 | 659,986 | — | — | 4,801,977 | ||||||||||||||
Investment in wholly-owned subsidiaries, at equity | 591,969 | — | — | — | (591,969 | ) | [2] | — | ||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | 2,239 | 6,885 | 1,797 | 101 | — | 11,022 | ||||||||||||||
Restricted cash | 30,749 | 123 | — | — | — | 30,872 | ||||||||||||||
Advances to affiliates | 27,700 | 8,000 | — | — | (35,700 | ) | [1] | — | ||||||||||||
Customer accounts receivable, net | 105,454 | 24,520 | 22,816 | — | — | 152,790 | ||||||||||||||
Accrued unbilled revenues, net | 83,148 | 17,071 | 17,008 | — | — | 117,227 | ||||||||||||||
Other accounts receivable, net | 18,396 | 1,907 | 1,960 | — | (10,695 | ) | [1] | 11,568 | ||||||||||||
Fuel oil stock, at average cost | 69,003 | 8,901 | 14,033 | — | — | 91,937 | ||||||||||||||
Materials and supplies, at average cost | 34,876 | 8,313 | 17,513 | — | — | 60,702 | ||||||||||||||
Prepayments and other | 88,334 | 3,725 | 24,921 | — | — | 116,980 | ||||||||||||||
Regulatory assets | 27,689 | 1,641 | 1,380 | — | — | 30,710 | ||||||||||||||
Total current assets | 487,588 | 81,086 | 101,428 | 101 | (46,395 | ) | 623,808 | |||||||||||||
Other long-term assets | ||||||||||||||||||||
Operating lease right-of-use assets | 174,886 | 1,537 | 386 | — | — | 176,809 | ||||||||||||||
Regulatory assets | 476,390 | 109,163 | 98,817 | — | — | 684,370 | ||||||||||||||
Other | 69,010 | 15,493 | 17,215 | — | — | 101,718 | ||||||||||||||
Total other long-term assets | 720,286 | 126,193 | 116,418 | — | — | 962,897 | ||||||||||||||
Total assets | $ | 5,187,009 | 962,104 | 877,832 | 101 | (638,364 | ) | $ | 6,388,682 | |||||||||||
Capitalization and liabilities | ||||||||||||||||||||
Capitalization | ||||||||||||||||||||
Common stock equity | $ | 2,047,352 | 298,998 | 292,870 | 101 | (591,969 | ) | [2] | $ | 2,047,352 | ||||||||||
Cumulative preferred stock–not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | ||||||||||||||
Long-term debt, net | 1,006,737 | 206,416 | 188,561 | — | — | 1,401,714 | ||||||||||||||
Total capitalization | 3,076,382 | 512,414 | 486,431 | 101 | (591,969 | ) | 3,483,359 | |||||||||||||
Current liabilities | ||||||||||||||||||||
Current portion of operating lease liabilities | 63,582 | 94 | 31 | — | — | 63,707 | ||||||||||||||
Current portion of long-term debt, net | 61,958 | 13,995 | 20,000 | — | — | 95,953 | ||||||||||||||
Short-term borrowings-non-affiliate | 88,987 | — | — | — | — | 88,987 | ||||||||||||||
Short-term borrowings-affiliate | 8,000 | — | 27,700 | — | (35,700 | ) | [1] | — | ||||||||||||
Accounts payable | 139,056 | 25,629 | 23,085 | — | — | 187,770 | ||||||||||||||
Interest and preferred dividends payable | 14,759 | 3,115 | 2,900 | — | (46 | ) | [1] | 20,728 | ||||||||||||
Taxes accrued | 143,522 | 32,541 | 31,929 | — | — | 207,992 | ||||||||||||||
Regulatory liabilities | 13,363 | 9,454 | 7,907 | — | — | 30,724 | ||||||||||||||
Other | 51,295 | 11,362 | 15,297 | — | (10,649 | ) | [1] | 67,305 | ||||||||||||
Total current liabilities | 584,522 | 96,190 | 128,849 | — | (46,395 | ) | 763,166 | |||||||||||||
Deferred credits and other liabilities | ||||||||||||||||||||
Operating lease liabilities | 111,598 | 1,442 | 360 | — | — | 113,400 | ||||||||||||||
Deferred income taxes | 265,864 | 53,534 | 57,752 | — | — | 377,150 | ||||||||||||||
Regulatory liabilities | 664,894 | 178,474 | 98,218 | — | — | 941,586 | ||||||||||||||
Unamortized tax credits | 86,852 | 16,196 | 14,820 | — | — | 117,868 | ||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 339,471 | 69,928 | 69,364 | — | — | 478,763 | ||||||||||||||
Other | 57,426 | 33,926 | 22,038 | — | — | 113,390 | ||||||||||||||
Total deferred credits and other liabilities | 1,526,105 | 353,500 | 262,552 | — | — | 2,142,157 | ||||||||||||||
Total capitalization and liabilities | $ | 5,187,009 | 962,104 | 877,832 | 101 | (638,364 | ) | $ | 6,388,682 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Assets | ||||||||||||||||||||
Property, plant and equipment | ||||||||||||||||||||
Utility property, plant and equipment | ||||||||||||||||||||
Land | $ | 40,449 | 5,606 | 3,612 | — | — | $ | 49,667 | ||||||||||||
Plant and equipment | 4,456,090 | 1,259,553 | 1,094,028 | — | — | 6,809,671 | ||||||||||||||
Less accumulated depreciation | (1,523,861 | ) | (547,848 | ) | (505,633 | ) | — | — | (2,577,342 | ) | ||||||||||
Construction in progress | 193,677 | 8,781 | 30,687 | — | — | 233,145 | ||||||||||||||
Utility property, plant and equipment, net | 3,166,355 | 726,092 | 622,694 | — | — | 4,515,141 | ||||||||||||||
Nonutility property, plant and equipment, less accumulated depreciation | 5,314 | 115 | 1,532 | — | — | 6,961 | ||||||||||||||
Total property, plant and equipment, net | 3,171,669 | 726,207 | 624,226 | — | — | 4,522,102 | ||||||||||||||
Investment in wholly-owned subsidiaries, at equity | 576,838 | — | — | — | (576,838 | ) | [2] | — | ||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | 16,732 | 15,623 | 3,421 | 101 | — | 35,877 | ||||||||||||||
Customer accounts receivable, net | 125,960 | 26,483 | 25,453 | — | — | 177,896 | ||||||||||||||
Accrued unbilled revenues, net | 88,060 | 17,051 | 16,627 | — | — | 121,738 | ||||||||||||||
Other accounts receivable, net | 21,962 | 3,131 | 3,033 | — | (21,911 | ) | [1] | 6,215 | ||||||||||||
Fuel oil stock, at average cost | 54,262 | 11,027 | 14,646 | — | — | 79,935 | ||||||||||||||
Materials and supplies, at average cost | 30,291 | 7,155 | 17,758 | — | — | 55,204 | ||||||||||||||
Prepayments and other | 23,214 | 5,212 | 3,692 | — | — | 32,118 | ||||||||||||||
Regulatory assets | 60,093 | 3,177 | 7,746 | — | — | 71,016 | ||||||||||||||
Total current assets | 420,574 | 88,859 | 92,376 | 101 | (21,911 | ) | 579,999 | |||||||||||||
Other long-term assets | ||||||||||||||||||||
Regulatory assets | 537,708 | 120,658 | 104,044 | — | — | 762,410 | ||||||||||||||
Other | 69,749 | 15,944 | 17,299 | — | — | 102,992 | ||||||||||||||
Total other long-term assets | 607,457 | 136,602 | 121,343 | — | — | 865,402 | ||||||||||||||
Total assets | $ | 4,776,538 | 951,668 | 837,945 | 101 | (598,749 | ) | $ | 5,967,503 | |||||||||||
Capitalization and liabilities | ||||||||||||||||||||
Capitalization | ||||||||||||||||||||
Common stock equity | $ | 1,957,641 | 295,874 | 280,863 | 101 | (576,838 | ) | [2] | $ | 1,957,641 | ||||||||||
Cumulative preferred stock–not subject to mandatory redemption | 22,293 | 7,000 | 5,000 | — | — | 34,293 | ||||||||||||||
Long-term debt, net | 1,000,137 | 217,749 | 200,916 | — | — | 1,418,802 | ||||||||||||||
Total capitalization | 2,980,071 | 520,623 | 486,779 | 101 | (576,838 | ) | 3,410,736 | |||||||||||||
Current liabilities | ||||||||||||||||||||
Short-term borrowings-non-affiliate | 25,000 | — | — | — | — | 25,000 | ||||||||||||||
Accounts payable | 126,384 | 20,045 | 25,362 | — | — | 171,791 | ||||||||||||||
Interest and preferred dividends payable | 16,203 | 4,203 | 2,841 | — | (32 | ) | [1] | 23,215 | ||||||||||||
Taxes accrued | 164,747 | 34,128 | 34,458 | — | — | 233,333 | ||||||||||||||
Regulatory liabilities | 7,699 | 4,872 | 5,406 | — | — | 17,977 | ||||||||||||||
Other | 46,391 | 15,077 | 20,414 | — | (21,879 | ) | [1] | 60,003 | ||||||||||||
Total current liabilities | 386,424 | 78,325 | 88,481 | — | (21,911 | ) | 531,319 | |||||||||||||
Deferred credits and other liabilities | ||||||||||||||||||||
Deferred income taxes | 271,438 | 54,936 | 56,823 | — | — | 383,197 | ||||||||||||||
Regulatory liabilities | 657,210 | 176,101 | 98,948 | — | — | 932,259 | ||||||||||||||
Unamortized tax credits | 60,271 | 16,217 | 15,034 | — | — | 91,522 | ||||||||||||||
Defined benefit pension and other postretirement benefit plans liability | 359,174 | 73,147 | 71,338 | — | — | 503,659 | ||||||||||||||
Other | 61,950 | 32,319 | 20,542 | — | — | 114,811 | ||||||||||||||
Total deferred credits and other liabilities | 1,410,043 | 352,720 | 262,685 | — | — | 2,025,448 | ||||||||||||||
Total capitalization and liabilities | $ | 4,776,538 | 951,668 | 837,945 | 101 | (598,749 | ) | $ | 5,967,503 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | |||||||||||||
Balance, December 31, 2016 | $ | 1,799,787 | 291,291 | 259,554 | 101 | (550,946 | ) | $ | 1,799,787 | ||||||||||
Net income for common stock | 119,951 | 20,146 | 17,911 | — | (38,057 | ) | 119,951 | ||||||||||||
Other comprehensive income (loss), net of taxes | (688 | ) | 2 | (55 | ) | — | 53 | (688 | ) | ||||||||||
Issuance of common stock, net of expenses | 14,000 | 4 | 4,801 | — | (4,805 | ) | 14,000 | ||||||||||||
Common stock dividends | (87,767 | ) | (24,796 | ) | (11,946 | ) | — | 36,742 | (87,767 | ) | |||||||||
Balance, December 31, 2017 | 1,845,283 | 286,647 | 270,265 | 101 | (557,013 | ) | 1,845,283 | ||||||||||||
Net income for common stock | 143,653 | 24,481 | 20,912 | — | (45,393 | ) | 143,653 | ||||||||||||
Other comprehensive income, net of taxes | 1,318 | 34 | 207 | — | (241 | ) | 1,318 | ||||||||||||
Issuance of common stock, net of expenses | 70,692 | 1 | 1,498 | — | (1,499 | ) | 70,692 | ||||||||||||
Common stock dividends | (103,305 | ) | (15,289 | ) | (12,019 | ) | — | 27,308 | (103,305 | ) | |||||||||
Balance, December 31, 2018 | 1,957,641 | 295,874 | 280,863 | 101 | (576,838 | ) | 1,957,641 | ||||||||||||
Net income for common stock | 156,840 | 20,817 | 22,350 | — | (43,167 | ) | 156,840 | ||||||||||||
Other comprehensive loss, net of tax benefits | (1,378 | ) | (12 | ) | (174 | ) | — | 186 | (1,378 | ) | |||||||||
Issuance of common stock, net of expenses | 35,501 | (1 | ) | 4,899 | — | (4,898 | ) | 35,501 | |||||||||||
Common stock dividends | (101,252 | ) | (17,680 | ) | (15,068 | ) | — | 32,748 | (101,252 | ) | |||||||||
Balance, December 31, 2019 | $ | 2,047,352 | 298,998 | 292,870 | 101 | (591,969 | ) | $ | 2,047,352 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 157,920 | 21,351 | 22,731 | — | (43,167 | ) | [2] | $ | 158,835 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Equity in earnings of subsidiaries | (43,204 | ) | — | — | — | 43,167 | [2] | (37 | ) | |||||||||||
Common stock dividends received from subsidiaries | 32,783 | — | — | — | (32,748 | ) | [2] | 35 | ||||||||||||
Depreciation of property, plant and equipment | 143,470 | 41,812 | 30,449 | — | — | 215,731 | ||||||||||||||
Other amortization | 23,351 | 4,810 | 1,470 | — | — | 29,631 | ||||||||||||||
Deferred income taxes | (13,547 | ) | (2,383 | ) | (354 | ) | — | — | (16,284 | ) | ||||||||||
Income tax credits, net | 27,277 | (13 | ) | (5 | ) | — | — | 27,259 | ||||||||||||
State refundable credit | (6,245 | ) | (559 | ) | (1,565 | ) | — | — | (8,369 | ) | ||||||||||
Allowance for equity funds used during construction | (9,955 | ) | (816 | ) | (1,216 | ) | — | — | (11,987 | ) | ||||||||||
Other | 298 | (48 | ) | (50 | ) | — | — | 200 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Decrease in accounts receivable | 25,376 | 3,326 | 3,469 | — | (11,215 | ) | [1] | 20,956 | ||||||||||||
Decrease (increase) in accrued unbilled revenues | 4,912 | (20 | ) | (381 | ) | — | — | 4,511 | ||||||||||||
Decrease (increase) in fuel oil stock | (14,741 | ) | 2,126 | 613 | — | — | (12,002 | ) | ||||||||||||
Decrease (increase) in materials and supplies | (4,585 | ) | (1,158 | ) | 245 | — | — | (5,498 | ) | |||||||||||
Decrease in regulatory assets | 55,494 | 9,218 | 6,550 | — | — | 71,262 | ||||||||||||||
Increase (decrease) in regulatory liabilities | 102 | (1,558 | ) | 3,409 | 1,953 | |||||||||||||||
Increase (decrease) in accounts payable | 4,687 | (3,160 | ) | (3,578 | ) | — | — | (2,051 | ) | |||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | (24,900 | ) | (893 | ) | (3,097 | ) | — | 367 | [1] | (28,523 | ) | |||||||||
Decrease in defined benefit pension and other postretirement benefit plans liability | (3,033 | ) | (762 | ) | (653 | ) | — | — | (4,448 | ) | ||||||||||
Change in other assets and liabilities | (15,341 | ) | (6,152 | ) | (6,940 | ) | — | 11,215 | [1] | (17,218 | ) | |||||||||
Net cash provided by operating activities | 340,119 | 65,121 | 51,097 | — | (32,381 | ) | 423,956 | |||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (311,538 | ) | (49,811 | ) | (58,549 | ) | — | — | (419,898 | ) | ||||||||||
Advances to affiliates | (27,700 | ) | (8,000 | ) | — | — | 35,700 | [1] | — | |||||||||||
Other | 5,241 | 297 | 1,303 | — | 4,533 | [1],[2] | 11,374 | |||||||||||||
Net cash used in investing activities | (333,997 | ) | (57,514 | ) | (57,246 | ) | — | 40,233 | (408,524 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Common stock dividends | (101,252 | ) | (17,680 | ) | (15,068 | ) | — | 32,748 | [2] | (101,252 | ) | |||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | ||||||||||
Proceeds from issuance of common stock | 35,500 | — | 4,900 | — | (4,900 | ) | [2] | 35,500 | ||||||||||||
Proceeds from issuance of long-term debt | 190,000 | 72,500 | 17,500 | — | — | 280,000 | ||||||||||||||
Repayment of long-term debt and funds transferred for repayment of long-term dent | (183,546 | ) | (70,000 | ) | (30,000 | ) | — | — | (283,546 | ) | ||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 46,987 | — | 27,700 | — | (35,700 | ) | [1] | 38,987 | ||||||||||||
Proceeds from issuance of short-term debt | 75,000 | — | — | — | — | 75,000 | ||||||||||||||
Repayment of short-term debt | (50,000 | ) | — | — | — | — | (50,000 | ) | ||||||||||||
Other | (1,475 | ) | (508 | ) | (126 | ) | — | — | (2,109 | ) | ||||||||||
Net cash provided by (used in) financing activities | 10,134 | (16,222 | ) | 4,525 | — | (7,852 | ) | (9,415 | ) | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 16,256 | (8,615 | ) | (1,624 | ) | — | — | 6,017 | ||||||||||||
Cash, cash equivalents and restricted cash, January 1 | 16,732 | 15,623 | 3,421 | 101 | — | 35,877 | ||||||||||||||
Cash, cash equivalents and restricted cash, December 31 | 32,988 | 7,008 | 1,797 | 101 | — | 41,894 | ||||||||||||||
Less: Restricted cash | (30,749 | ) | (123 | ) | — | — | — | (30,872 | ) | |||||||||||
Cash and cash equivalents, December 31 | $ | 2,239 | 6,885 | 1,797 | 101 | — | $ | 11,022 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 144,733 | 25,015 | 21,293 | — | (45,393 | ) | [2] | $ | 145,648 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Equity in earnings of subsidiaries | (45,493 | ) | — | — | — | 45,393 | [2] | (100 | ) | |||||||||||
Common stock dividends received from subsidiaries | 27,408 | — | — | — | (27,308 | ) | [2] | 100 | ||||||||||||
Depreciation of property, plant and equipment | 137,410 | 40,235 | 25,981 | — | — | 203,626 | ||||||||||||||
Other amortization | 20,956 | 5,069 | 577 | — | — | 26,602 | ||||||||||||||
Deferred income taxes | (9,806 | ) | (341 | ) | 2,165 | — | — | (7,982 | ) | |||||||||||
Income tax credits, net | (83 | ) | (14 | ) | (2 | ) | — | — | (99 | ) | ||||||||||
State refundable credit | (4,941 | ) | (547 | ) | (751 | ) | — | — | (6,239 | ) | ||||||||||
Allowance for equity funds used during construction | (9,208 | ) | (478 | ) | (1,191 | ) | — | — | (10,877 | ) | ||||||||||
Other | 3,991 | 348 | 429 | — | — | 4,768 | ||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Increase in accounts receivable | (51,656 | ) | (4,867 | ) | (8,614 | ) | — | 14,220 | [1] | (50,917 | ) | |||||||||
Increase in accrued unbilled revenues | (10,884 | ) | (1,111 | ) | (2,689 | ) | — | — | (14,684 | ) | ||||||||||
Decrease (increase) in fuel oil stock | 10,710 | (2,329 | ) | (1,443 | ) | — | — | 6,938 | ||||||||||||
Decrease (increase) in materials and supplies | (1,966 | ) | 886 | 273 | — | — | (807 | ) | ||||||||||||
Decrease (increase) in regulatory assets | 12,192 | 71 | (3,011 | ) | — | — | 9,252 | |||||||||||||
Increase in regulatory liabilities | 26,540 | 5,380 | 5,438 | — | — | 37,358 | ||||||||||||||
Increase in accounts payable | 14,748 | 6,104 | 3,506 | — | — | 24,358 | ||||||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 24,438 | (2,118 | ) | 3,047 | — | (331 | ) | [1] | 25,036 | |||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 17,178 | (760 | ) | 2,328 | — | — | 18,746 | |||||||||||||
Change in other assets and liabilities | (8,056 | ) | 2,806 | 2,356 | — | (14,220 | ) | [1] | (17,114 | ) | ||||||||||
Net cash provided by operating activities | 298,211 | 73,349 | 49,692 | — | (27,639 | ) | 393,613 | |||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (305,703 | ) | (51,054 | ) | (58,507 | ) | — | — | (415,264 | ) | ||||||||||
Advances from affiliates | — | — | 12,000 | — | (12,000 | ) | [1] | — | ||||||||||||
Other | 3,226 | 1,182 | 3,843 | — | 1,831 | [1],[2] | 10,082 | |||||||||||||
Net cash used in investing activities | (302,477 | ) | (49,872 | ) | (42,664 | ) | — | (10,169 | ) | (405,182 | ) | |||||||||
Cash flows from financing activities | ||||||||||||||||||||
Common stock dividends | (103,305 | ) | (15,289 | ) | (12,019 | ) | — | 27,308 | [2] | (103,305 | ) | |||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | ||||||||||
Proceeds from the issuance of common stock | 70,700 | — | 1,500 | — | (1,500 | ) | [2] | 70,700 | ||||||||||||
Proceeds from the issuance of long-term debt | 75,000 | 15,000 | 10,000 | — | — | 100,000 | ||||||||||||||
Repayment of long-term debt | (30,000 | ) | (11,000 | ) | (9,000 | ) | — | — | (50,000 | ) | ||||||||||
Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | (16,999 | ) | — | — | — | 12,000 | [1] | (4,999 | ) | |||||||||||
Proceeds from issuance of short-term debt | 25,000 | — | — | — | — | 25,000 | ||||||||||||||
Other | (377 | ) | (56 | ) | (39 | ) | — | — | (472 | ) | ||||||||||
Net cash provided by (used in) financing activities | 18,939 | (11,879 | ) | (9,939 | ) | — | 37,808 | 34,929 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 14,673 | 11,598 | (2,911 | ) | — | — | 23,360 | |||||||||||||
Cash and cash equivalents, January 1 | 2,059 | 4,025 | 6,332 | 101 | — | 12,517 | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 16,732 | 15,623 | 3,421 | 101 | — | $ | 35,877 |
(in thousands) | Hawaiian Electric | Hawaii Electric Light | Maui Electric | Other subsidiaries | Consolidating adjustments | Hawaiian Electric Consolidated | ||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 121,031 | 20,680 | 18,292 | — | (38,057 | ) | [2] | $ | 121,946 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Equity in earnings of subsidiaries | (38,157 | ) | — | — | — | 38,057 | [2] | (100 | ) | |||||||||||
Common stock dividends received from subsidiaries | 36,867 | — | — | — | (36,742 | ) | [2] | 125 | ||||||||||||
Depreciation of property, plant and equipment | 130,889 | 38,741 | 23,154 | — | — | 192,784 | ||||||||||||||
Other amortization | 2,398 | 3,225 | 2,875 | — | — | 8,498 | ||||||||||||||
Deferred income taxes | 26,342 | 3,954 | 8,004 | — | (263 | ) | [1] | 38,037 | ||||||||||||
Income tax credits, net | (35 | ) | (16 | ) | (1 | ) | — | — | (52 | ) | ||||||||||
State refundable credit | (1,382 | ) | (528 | ) | (341 | ) | — | — | (2,251 | ) | ||||||||||
Allowance for equity funds used during construction | (10,896 | ) | (554 | ) | (1,033 | ) | — | — | (12,483 | ) | ||||||||||
Other | 263 | 974 | — | — | — | 1,237 | ||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Decrease (increase) in accounts receivable | 1,817 | (359 | ) | 45 | — | 1,411 | [1] | 2,914 | ||||||||||||
Increase in accrued unbilled revenues | (11,355 | ) | (2,376 | ) | (1,630 | ) | — | — | (15,361 | ) | ||||||||||
Increase in fuel oil stock | (17,733 | ) | (469 | ) | (2,241 | ) | — | — | (20,443 | ) | ||||||||||
Decrease (increase) in materials and supplies | 1,603 | (661 | ) | (1,660 | ) | — | — | (718 | ) | |||||||||||
Increase in regulatory assets | (8,395 | ) | (4,007 | ) | (4,854 | ) | — | — | (17,256 | ) | ||||||||||
Increase in regulatory liabilities | 2,552 | 315 | 735 | — | — | 3,602 | ||||||||||||||
Increase (decrease) in accounts payable | 23,519 | (3,547 | ) | 5,762 | — | — | 25,734 | |||||||||||||
Change in prepaid and accrued income taxes, tax credits and revenue taxes | 16,716 | 7,961 | 5,362 | — | (177 | ) | [1] | 29,862 | ||||||||||||
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability | 709 | 52 | (157 | ) | — | — | 604 | |||||||||||||
Change in other assets and liabilities | (18,765 | ) | (748 | ) | (569 | ) | — | (1,411 | ) | [1] | (21,493 | ) | ||||||||
Net cash provided by operating activities | 257,988 | 62,637 | 51,743 | — | (37,182 | ) | 335,186 | |||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (281,752 | ) | (47,784 | ) | (47,329 | ) | — | — | (376,865 | ) | ||||||||||
Advances from (to) affiliates | — | 3,500 | (2,000 | ) | — | (1,500 | ) | [1] | — | |||||||||||
Other | (1,711 | ) | 649 | 400 | — | 5,240 | [1],[2] | 4,578 | ||||||||||||
Net cash used in investing activities | (283,463 | ) | (43,635 | ) | (48,929 | ) | — | 3,740 | (372,287 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Common stock dividends | (87,767 | ) | (24,796 | ) | (11,946 | ) | — | 36,742 | [2] | (87,767 | ) | |||||||||
Preferred stock dividends of Hawaiian Electric and subsidiaries | (1,080 | ) | (534 | ) | (381 | ) | — | — | (1,995 | ) | ||||||||||
Proceeds from the issuance of common stock | 14,000 | — | 4,800 | — | (4,800 | ) | [2] | 14,000 | ||||||||||||
Proceeds from the issuance of long-term debt | 202,000 | 28,000 | 85,000 | — | — | 315,000 | ||||||||||||||
Repayment of long-term debt | (162,000 | ) | (28,000 | ) | (75,000 | ) | — | — | (265,000 | ) | ||||||||||
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less | 3,499 | — | — | — | 1,500 | [1] | 4,999 | |||||||||||||
Other | (2,506 | ) | (396 | ) | (1,003 | ) | — | — | (3,905 | ) | ||||||||||
Net cash provided by (used in) financing activities | (33,854 | ) | (25,726 | ) | 1,470 | — | 33,442 | (24,668 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | (59,329 | ) | (6,724 | ) | 4,284 | — | — | (61,769 | ) | |||||||||||
Cash and cash equivalents, January 1 | 61,388 | 10,749 | 2,048 | 101 | — | 74,286 | ||||||||||||||
Cash and cash equivalents, December 31 | $ | 2,059 | 4,025 | 6,332 | 101 | — | $ | 12,517 |
[1] | Eliminations of intercompany receivables and payables and other intercompany transactions. |
[2] | Elimination of investment in subsidiaries, carried at equity. |
Note 4· Bank segment (HEI only) |
Years ended December 31 | 2019 | 2018 | 2017 | ||||||||
(in thousands) | |||||||||||
Interest and dividend income | |||||||||||
Interest and fees on loans | $ | 233,632 | $ | 220,463 | $ | 207,255 | |||||
Interest and dividends on investment securities | 32,922 | 37,762 | 28,823 | ||||||||
Total interest and dividend income | 266,554 | 258,225 | 236,078 | ||||||||
Interest expense | |||||||||||
Interest on deposit liabilities | 16,830 | 13,991 | 9,660 | ||||||||
Interest on other borrowings | 1,610 | 1,548 | 2,496 | ||||||||
Total interest expense | 18,440 | 15,539 | 12,156 | ||||||||
Net interest income | 248,114 | 242,686 | 223,922 | ||||||||
Provision for loan losses | 23,480 | 14,745 | 10,901 | ||||||||
Net interest income after provision for loan losses | 224,634 | 227,941 | 213,021 | ||||||||
Noninterest income | |||||||||||
Fees from other financial services | 19,275 | 18,937 | 22,796 | ||||||||
Fee income on deposit liabilities | 20,877 | 21,311 | 22,204 | ||||||||
Fee income on other financial products | 6,507 | 7,052 | 7,205 | ||||||||
Bank-owned life insurance | 7,687 | 5,057 | 5,539 | ||||||||
Mortgage banking income | 4,943 | 1,493 | 2,201 | ||||||||
Gain on sale of real estate | 10,762 | — | — | ||||||||
Gains on sale of investment securities, net | 653 | — | — | ||||||||
Other income, net | 2,074 | 2,200 | 1,617 | ||||||||
Total noninterest income | 72,778 | 56,050 | 61,562 | ||||||||
Noninterest expense | |||||||||||
Compensation and employee benefits | 103,009 | 98,387 | 94,931 | ||||||||
Occupancy | 21,272 | 17,073 | 16,699 | ||||||||
Data processing | 15,306 | 14,268 | 13,280 | ||||||||
Services | 10,239 | 10,847 | 10,994 | ||||||||
Equipment | 8,760 | 7,186 | 7,232 | ||||||||
Office supplies, printing and postage | 5,512 | 6,134 | 6,182 | ||||||||
Marketing | 4,490 | 3,567 | 3,501 | ||||||||
FDIC insurance | 1,204 | 2,713 | 2,904 | ||||||||
Other expense | 15,586 | 17,238 | 20,144 | ||||||||
Total noninterest expense | 185,378 | 177,413 | 175,867 | ||||||||
Income before income taxes | 112,034 | 106,578 | 98,716 | ||||||||
Income taxes | 23,061 | 24,069 | 31,719 | ||||||||
Net income | 88,973 | 82,509 | 66,997 | ||||||||
Other comprehensive income (loss), net of taxes | 29,406 | (7,119 | ) | (3,139 | ) | ||||||
Comprehensive income | $ | 118,379 | $ | 75,390 | $ | 63,858 |
Years ended December 31 | 2019 | 2018 | 2017 | ||||||||
(in thousands) | |||||||||||
Interest and dividend income | $ | 266,554 | $ | 258,225 | $ | 236,078 | |||||
Noninterest income | 72,778 | 56,050 | 61,562 | ||||||||
Less: Gain on sale of real estate | (10,762 | ) | — | — | |||||||
*Revenues-Bank | 328,570 | 314,275 | 297,640 | ||||||||
Total interest expense | 18,440 | 15,539 | 12,156 | ||||||||
Provision for loan losses | 23,480 | 14,745 | 10,901 | ||||||||
Noninterest expense | 185,378 | 177,413 | 175,867 | ||||||||
Less: Retirement defined benefits credit (expense)—other than service costs | 472 | (1,657 | ) | (820 | ) | ||||||
Add: Gain on sale of real estate | (10,762 | ) | — | — | |||||||
*Expenses-Bank | 217,008 | 206,040 | 198,104 | ||||||||
*Operating income-Bank | 111,562 | 108,235 | 99,536 | ||||||||
Add back: Retirement defined benefits expense (credit)—other than service costs | (472 | ) | 1,657 | 820 | |||||||
Income before income taxes | $ | 112,034 | $ | 106,578 | $ | 98,716 |
December 31 | 2019 | 2018 | ||||||||||
(in thousands) | ||||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 129,770 | $ | 122,059 | ||||||||
Interest-bearing deposits | 48,628 | 4,225 | ||||||||||
Investment securities | ||||||||||||
Available-for-sale, at fair value | 1,232,826 | 1,388,533 | ||||||||||
Held-to-maturity, at amortized cost (fair value of $143,467 and $142,057 at December 31, 2019 and 2018, respectively) | 139,451 | 141,875 | ||||||||||
Stock in Federal Home Loan Bank, at cost | 8,434 | 9,958 | ||||||||||
Loans held for investment | 5,121,176 | 4,843,021 | ||||||||||
Allowance for loan losses | (53,355 | ) | (52,119 | ) | ||||||||
Net loans | 5,067,821 | 4,790,902 | ||||||||||
Loans held for sale, at lower of cost or fair value | 12,286 | 1,805 | ||||||||||
Other | 511,611 | 486,347 | ||||||||||
Goodwill | 82,190 | 82,190 | ||||||||||
Total assets | $ | 7,233,017 | $ | 7,027,894 | ||||||||
Liabilities and shareholder’s equity | ||||||||||||
Deposit liabilities–noninterest-bearing | $ | 1,909,682 | $ | 1,800,727 | ||||||||
Deposit liabilities–interest-bearing | 4,362,220 | 4,358,125 | ||||||||||
Other borrowings | 115,110 | 110,040 | ||||||||||
Other | 146,954 | 124,613 | ||||||||||
Total liabilities | 6,533,966 | 6,393,505 | ||||||||||
Commitments and contingencies | ||||||||||||
Common stock | 1 | 1 | ||||||||||
Additional paid in capital | 349,453 | 347,170 | ||||||||||
Retained earnings | 358,259 | 325,286 | ||||||||||
Accumulated other comprehensive loss, net of tax benefits | ||||||||||||
Net unrealized gains (losses) on securities | $ | 2,481 | $ | (24,423 | ) | |||||||
Retirement benefit plans | (11,143 | ) | (8,662 | ) | (13,645 | ) | (38,068 | ) | ||||
Total shareholder’s equity | 699,051 | 634,389 | ||||||||||
Total liabilities and shareholder’s equity | $ | 7,233,017 | $ | 7,027,894 |
December 31 | 2019 | 2018 | ||||||
(in thousands) | ||||||||
Other assets | ||||||||
Bank-owned life insurance | $ | 157,465 | $ | 151,172 | ||||
Premises and equipment, net | 204,449 | 214,415 | ||||||
Accrued interest receivable | 19,365 | 20,140 | ||||||
Mortgage servicing rights | 9,101 | 8,062 | ||||||
Low-income housing investments | 66,302 | 67,626 | ||||||
Real estate acquired in settlement of loans, net | — | 406 | ||||||
Other | 54,929 | 24,526 | ||||||
$ | 511,611 | $ | 486,347 | |||||
Other liabilities | ||||||||
Accrued expenses | $ | 45,822 | $ | 54,084 | ||||
Federal and state income taxes payable | 14,996 | 2,012 | ||||||
Cashier’s checks | 23,647 | 26,906 | ||||||
Advance payments by borrowers | 10,486 | 10,183 | ||||||
Other | 52,003 | 31,428 | ||||||
$ | 146,954 | $ | 124,613 |
Gross unrealized losses | |||||||||||||||||||||||||||||||||||
Gross unrealized gains | Gross unrealized losses | Estimated fair value | Less than 12 months | 12 months or longer | |||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized cost | Number of issues | Fair value | Amount | Number of issues | Fair value | Amount | ||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency obligations | $ | 117,255 | $ | 652 | $ | (120 | ) | $ | 117,787 | 2 | $ | 4,110 | $ | (11 | ) | 3 | $ | 27,637 | $ | (109 | ) | ||||||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,024,892 | 6,000 | (4,507 | ) | 1,026,385 | 19 | 152,071 | (819 | ) | 75 | 318,020 | (3,688 | ) | ||||||||||||||||||||||
Corporate bonds | 58,694 | 1,363 | — | 60,057 | — | — | — | — | — | — | |||||||||||||||||||||||||
Mortgage revenue bonds | 28,597 | — | — | 28,597 | — | — | — | — | — | — | |||||||||||||||||||||||||
$ | 1,229,438 | $ | 8,015 | $ | (4,627 | ) | $ | 1,232,826 | 21 | $ | 156,181 | $ | (830 | ) | 78 | $ | 345,657 | $ | (3,797 | ) | |||||||||||||||
Held-to-maturity | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | $ | 139,451 | $ | 4,087 | $ | (71 | ) | $ | 143,467 | 1 | $ | 12,986 | $ | (71 | ) | — | $ | — | $ | — | |||||||||||||||
$ | 139,451 | $ | 4,087 | $ | (71 | ) | $ | 143,467 | 1 | $ | 12,986 | $ | (71 | ) | — | $ | — | $ | — |
Gross unrealized losses | |||||||||||||||||||||||||||||||||||
Gross unrealized gains | Gross unrealized losses | Estimated fair value | Less than 12 months | 12 months or longer | |||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized cost | Number of issues | Fair value | Amount | Number of issues | Fair value | Amount | ||||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency obligations | $ | 156,694 | $ | 62 | $ | (2,407 | ) | $ | 154,349 | 5 | $ | 25,882 | $ | (208 | ) | 19 | $ | 118,405 | $ | (2,199 | ) | ||||||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,192,169 | 789 | (31,542 | ) | 1,161,416 | 22 | 129,011 | (1,330 | ) | 145 | 947,890 | (30,212 | ) | ||||||||||||||||||||||
Corporate bonds | 49,398 | 103 | (369 | ) | 49,132 | 6 | 23,175 | (369 | ) | — | — | — | |||||||||||||||||||||||
Mortgage revenue bond | 23,636 | — | — | 23,636 | — | — | — | — | — | — | |||||||||||||||||||||||||
$ | 1,421,897 | $ | 954 | $ | (34,318 | ) | $ | 1,388,533 | 33 | $ | 178,068 | $ | (1,907 | ) | 164 | $ | 1,066,295 | $ | (32,411 | ) | |||||||||||||||
Held-to-maturity | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | $ | 141,875 | $ | 1,446 | $ | (1,264 | ) | $ | 142,057 | 3 | $ | 29,814 | $ | (400 | ) | 2 | $ | 31,505 | $ | (864 | ) | ||||||||||||||
$ | 141,875 | $ | 1,446 | $ | (1,264 | ) | $ | 142,057 | 3 | $ | 29,814 | $ | (400 | ) | 2 | $ | 31,505 | $ | (864 | ) |
Amortized | Fair | ||||||
December 31, 2019 | Cost | value | |||||
(in thousands) | |||||||
Available-for-sale | |||||||
Due in one year or less | $ | 60,200 | $ | 60,249 | |||
Due after one year through five years | 75,694 | 77,225 | |||||
Due after five years through ten years | 53,225 | 53,540 | |||||
Due after ten years | 15,427 | 15,427 | |||||
204,546 | 206,441 | ||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | 1,024,892 | 1,026,385 | |||||
Total available-for-sale securities | $ | 1,229,438 | $ | 1,232,826 | |||
Held-to-maturity | |||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | $ | 139,451 | $ | 143,467 | |||
Total held-to-maturity securities | $ | 139,451 | $ | 143,467 |
Years ended December 31 | 2019 | 2018 | 2017 | ||||||||
(in millions) | |||||||||||
Proceeds | $ | 19.8 | $ | — | $ | — | |||||
Gross gains | 0.7 | — | — | ||||||||
Gross losses | — | — | — |
Years ended December 31 | 2019 | 2018 | 2017 | ||||||||
(in thousands) | |||||||||||
Taxable | $ | 31,847 | $ | 37,153 | $ | 28,398 | |||||
Non-taxable | 1,074 | 609 | 425 | ||||||||
$ | 32,921 | $ | 37,762 | $ | 28,823 |
December 31 | 2019 | 2018 | |||||
(in thousands) | |||||||
Real estate: | |||||||
Residential 1-4 family | $ | 2,178,135 | $ | 2,143,397 | |||
Commercial real estate | 824,830 | 748,398 | |||||
Home equity line of credit | 1,092,125 | 978,237 | |||||
Residential land | 14,704 | 13,138 | |||||
Commercial construction | 70,605 | 92,264 | |||||
Residential construction | 11,670 | 14,307 | |||||
Total real estate | 4,192,069 | 3,989,741 | |||||
Commercial | 670,674 | 587,891 | |||||
Consumer | 257,921 | 266,002 | |||||
Total loans | 5,120,664 | 4,843,634 | |||||
Less: Deferred fees and discounts | 512 | (613 | ) | ||||
Allowance for loan losses | (53,355 | ) | (52,119 | ) | |||
Total loans, net | $ | 5,067,821 | $ | 4,790,902 |
(in thousands) | Residential 1-4 family | Commercial real estate | Home equity line of credit | Residential land | Commercial construction | Residential construction | Commercial | Consumer | Total | ||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,976 | $ | 14,505 | $ | 6,371 | $ | 479 | $ | 2,790 | $ | 4 | $ | 9,225 | $ | 16,769 | $ | 52,119 | |||||||||||||||||
Charge-offs | (26 | ) | — | (144 | ) | (4 | ) | — | — | (6,811 | ) | (21,677 | ) | (28,662 | ) | ||||||||||||||||||||
Recoveries | 854 | — | 17 | 229 | — | — | 2,351 | 2,967 | 6,418 | ||||||||||||||||||||||||||
Provision | (424 | ) | 548 | 678 | (255 | ) | (693 | ) | (1 | ) | 5,480 | 18,147 | 23,480 | ||||||||||||||||||||||
Ending balance | $ | 2,380 | $ | 15,053 | $ | 6,922 | $ | 449 | $ | 2,097 | $ | 3 | $ | 10,245 | $ | 16,206 | $ | 53,355 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 898 | $ | 2 | $ | 322 | $ | — | $ | — | $ | — | $ | 1,015 | $ | 454 | $ | 2,691 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,482 | $ | 15,051 | $ | 6,600 | $ | 449 | $ | 2,097 | $ | 3 | $ | 9,230 | $ | 15,752 | $ | 50,664 | |||||||||||||||||
Financing Receivables: | |||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,178,135 | $ | 824,830 | $ | 1,092,125 | $ | 14,704 | $ | 70,605 | $ | 11,670 | $ | 670,674 | $ | 257,921 | $ | 5,120,664 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 15,600 | $ | 1,048 | $ | 12,073 | $ | 3,091 | $ | — | $ | — | $ | 8,418 | $ | 507 | $ | 40,737 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,162,535 | $ | 823,782 | $ | 1,080,052 | $ | 11,613 | $ | 70,605 | $ | 11,670 | $ | 662,256 | $ | 257,414 | $ | 5,079,927 | |||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 2,902 | $ | 15,796 | $ | 7,522 | $ | 896 | $ | 4,671 | $ | 12 | $ | 10,851 | $ | 10,987 | $ | 53,637 | |||||||||||||||||
Charge-offs | (128 | ) | — | (353 | ) | (18 | ) | — | — | (2,722 | ) | (17,296 | ) | (20,517 | ) | ||||||||||||||||||||
Recoveries | 74 | — | 257 | 179 | — | — | 2,136 | 1,608 | 4,254 | ||||||||||||||||||||||||||
Provision | (872 | ) | (1,291 | ) | (1,055 | ) | (578 | ) | (1,881 | ) | (8 | ) | (1,040 | ) | 21,470 | 14,745 | |||||||||||||||||||
Ending balance | $ | 1,976 | $ | 14,505 | $ | 6,371 | $ | 479 | $ | 2,790 | $ | 4 | $ | 9,225 | $ | 16,769 | $ | 52,119 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 876 | $ | 7 | $ | 701 | $ | 6 | $ | — | $ | — | $ | 628 | $ | 4 | $ | 2,222 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,100 | $ | 14,498 | $ | 5,670 | $ | 473 | $ | 2,790 | $ | 4 | $ | 8,597 | $ | 16,765 | $ | 49,897 | |||||||||||||||||
Financing Receivables: | |||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,143,397 | $ | 748,398 | $ | 978,237 | $ | 13,138 | $ | 92,264 | $ | 14,307 | $ | 587,891 | $ | 266,002 | $ | 4,843,634 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 16,494 | $ | 915 | $ | 14,800 | $ | 2,059 | $ | — | $ | — | $ | 5,340 | $ | 89 | $ | 39,697 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,126,903 | $ | 747,483 | $ | 963,437 | $ | 11,079 | $ | 92,264 | $ | 14,307 | $ | 582,551 | $ | 265,913 | $ | 4,803,937 | |||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 2,873 | $ | 16,004 | $ | 5,039 | $ | 1,738 | $ | 6,449 | $ | 12 | $ | 16,618 | $ | 6,800 | $ | 55,533 | |||||||||||||||||
Charge-offs | (826 | ) | — | (14 | ) | (210 | ) | — | — | (4,006 | ) | (11,757 | ) | (16,813 | ) | ||||||||||||||||||||
Recoveries | 157 | — | 308 | 482 | — | — | 1,852 | 1,217 | 4,016 | ||||||||||||||||||||||||||
Provision | 698 | (208 | ) | 2,189 | (1,114 | ) | (1,778 | ) | — | (3,613 | ) | 14,727 | 10,901 | ||||||||||||||||||||||
Ending balance | $ | 2,902 | $ | 15,796 | $ | 7,522 | $ | 896 | $ | 4,671 | $ | 12 | $ | 10,851 | $ | 10,987 | $ | 53,637 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,248 | $ | 65 | $ | 647 | $ | 47 | $ | — | $ | — | $ | 694 | $ | 29 | $ | 2,730 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,654 | $ | 15,731 | $ | 6,875 | $ | 849 | $ | 4,671 | $ | 12 | $ | 10,157 | $ | 10,958 | $ | 50,907 | |||||||||||||||||
Financing Receivables: | |||||||||||||||||||||||||||||||||||
Ending balance | $ | 2,118,047 | $ | 733,106 | $ | 913,052 | $ | 15,797 | $ | 108,273 | $ | 14,910 | $ | 544,828 | $ | 223,564 | $ | 4,671,577 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 18,284 | $ | 1,016 | $ | 8,188 | $ | 1,265 | $ | — | $ | — | $ | 4,574 | $ | 66 | $ | 33,393 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 2,099,763 | $ | 732,090 | $ | 904,864 | $ | 14,532 | $ | 108,273 | $ | 14,910 | $ | 540,254 | $ | 223,498 | $ | 4,638,184 |
December 31 | 2019 | 2018 | |||||||||||||||||||||||||||||
(in thousands) | Commercial real estate | Commercial construction | Commercial | Total | Commercial real estate | Commercial construction | Commercial | Total | |||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||
Pass | $ | 756,747 | $ | 68,316 | $ | 621,657 | $ | 1,446,720 | $ | 658,288 | $ | 89,974 | $ | 547,640 | $ | 1,295,902 | |||||||||||||||
Special mention | 4,451 | — | 29,921 | 34,372 | 32,871 | — | 11,598 | 44,469 | |||||||||||||||||||||||
Substandard | 63,632 | 2,289 | 19,096 | 85,017 | 57,239 | 2,290 | 28,653 | 88,182 | |||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Loss | — | — | — | — | �� | — | — | — | — | ||||||||||||||||||||||
Total | $ | 824,830 | $ | 70,605 | $ | 670,674 | $ | 1,566,109 | $ | 748,398 | $ | 92,264 | $ | 587,891 | $ | 1,428,553 |
(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, 2019 | |||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,588 | $ | 290 | $ | 1,808 | $ | 4,686 | $ | 2,173,449 | $ | 2,178,135 | $ | — | |||||||||||||
Commercial real estate | — | — | — | — | 824,830 | 824,830 | — | ||||||||||||||||||||
Home equity line of credit | 813 | — | 2,117 | 2,930 | 1,089,195 | 1,092,125 | — | ||||||||||||||||||||
Residential land | — | — | 25 | 25 | 14,679 | 14,704 | — | ||||||||||||||||||||
Commercial construction | — | — | — | — | 70,605 | 70,605 | — | ||||||||||||||||||||
Residential construction | — | — | — | — | 11,670 | 11,670 | — | ||||||||||||||||||||
Commercial | 1,077 | 311 | 172 | 1,560 | 669,114 | 670,674 | — | ||||||||||||||||||||
Consumer | 4,386 | 3,257 | 2,907 | 10,550 | 247,371 | 257,921 | — | ||||||||||||||||||||
Total loans | $ | 8,864 | $ | 3,858 | $ | 7,029 | $ | 19,751 | $ | 5,100,913 | $ | 5,120,664 | $ | — | |||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||
Residential 1-4 family | $ | 3,757 | $ | 2,773 | $ | 2,339 | $ | 8,869 | $ | 2,134,528 | $ | 2,143,397 | $ | — | |||||||||||||
Commercial real estate | — | — | — | — | 748,398 | 748,398 | — | ||||||||||||||||||||
Home equity line of credit | 1,139 | 681 | 2,720 | 4,540 | 973,697 | 978,237 | — | ||||||||||||||||||||
Residential land | 9 | — | 319 | 328 | 12,810 | 13,138 | — | ||||||||||||||||||||
Commercial construction | — | — | — | — | 92,264 | 92,264 | — | ||||||||||||||||||||
Residential construction | — | — | — | — | 14,307 | 14,307 | — | ||||||||||||||||||||
Commercial | 315 | 281 | 548 | 1,144 | 586,747 | 587,891 | — | ||||||||||||||||||||
Consumer | 5,220 | 3,166 | 2,702 | 11,088 | 254,914 | 266,002 | — | ||||||||||||||||||||
Total loans | $ | 10,440 | $ | 6,901 | $ | 8,628 | $ | 25,969 | $ | 4,817,665 | $ | 4,843,634 | $ | — |
Nonaccrual loans | Accruing loans 90 days or more past due | Troubled debt restructured loans not included in nonaccrual loans | |||||||||||||||||||||
December 31 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential 1-4 family | $ | 11,395 | $ | 12,037 | $ | — | $ | — | $ | 9,869 | $ | 10,194 | |||||||||||
Commercial real estate | 195 | — | — | — | 853 | 915 | |||||||||||||||||
Home equity line of credit | 6,638 | 6,348 | — | — | 10,376 | 11,597 | |||||||||||||||||
Residential land | 448 | 436 | — | — | 2,644 | 1,622 | |||||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||
Commercial | 5,947 | 4,278 | — | — | 2,614 | 1,527 | |||||||||||||||||
Consumer | 5,113 | 4,196 | — | — | 57 | 62 | |||||||||||||||||
Total | $ | 29,736 | $ | 27,295 | $ | — | $ | — | $ | 26,413 | $ | 25,917 |
December 31 | 2019 | 2018 | |||||||||||||||||||||
(in thousands) | Recorded investment | Unpaid principal balance | Related allowance | Recorded investment | Unpaid principal balance | Related allowance | |||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential 1-4 family | $ | 6,817 | $ | 7,207 | $ | — | $ | 7,822 | $ | 8,333 | $ | — | |||||||||||
Commercial real estate | 195 | 200 | — | — | — | — | |||||||||||||||||
Home equity line of credit | 1,984 | 2,135 | — | 2,743 | 3,004 | — | |||||||||||||||||
Residential land | 3,091 | 3,294 | — | 2,030 | 2,228 | — | |||||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||
Commercial | 1,948 | 2,285 | — | 3,722 | 4,775 | — | |||||||||||||||||
Consumer | 2 | 2 | — | 32 | 32 | — | |||||||||||||||||
14,037 | 15,123 | — | 16,349 | 18,372 | — | ||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential 1-4 family | 8,783 | 8,835 | 898 | 8,672 | 8,875 | 876 | |||||||||||||||||
Commercial real estate | 853 | 853 | 2 | 915 | 915 | 7 | |||||||||||||||||
Home equity line of credit | 10,089 | 10,099 | 322 | 12,057 | 12,086 | 701 | |||||||||||||||||
Residential land | — | — | — | 29 | 29 | 6 | |||||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||
Commercial | 6,470 | 6,470 | 1,015 | 1,618 | 1,618 | 628 | |||||||||||||||||
Consumer | 505 | 505 | 454 | 57 | 57 | 4 | |||||||||||||||||
26,700 | 26,762 | 2,691 | 23,348 | 23,580 | 2,222 | ||||||||||||||||||
Total | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential 1-4 family | 15,600 | 16,042 | 898 | 16,494 | 17,208 | 876 | |||||||||||||||||
Commercial real estate | 1,048 | 1,053 | 2 | 915 | 915 | 7 | |||||||||||||||||
Home equity line of credit | 12,073 | 12,234 | 322 | 14,800 | 15,090 | 701 | |||||||||||||||||
Residential land | 3,091 | 3,294 | — | 2,059 | 2,257 | 6 | |||||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||
Commercial | 8,418 | 8,755 | 1,015 | 5,340 | 6,393 | 628 | |||||||||||||||||
Consumer | 507 | 507 | 454 | 89 | 89 | 4 | |||||||||||||||||
$ | 40,737 | $ | 41,885 | $ | 2,691 | $ | 39,697 | $ | 41,952 | $ | 2,222 |
December 31 | 2019 | 2018 | 2017 | ||||||||||||||||||||
(in thousands) | Average recorded investment | Interest income recognized* | Average recorded investment | Interest income recognized* | Average recorded investment | Interest income recognized* | |||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential 1-4 family | $ | 8,169 | $ | 907 | $ | 8,595 | $ | 445 | $ | 9,440 | $ | 316 | |||||||||||
Commercial real estate | 16 | — | — | — | 91 | 11 | |||||||||||||||||
Home equity line of credit | 2,020 | 84 | 2,206 | 75 | 1,976 | 101 | |||||||||||||||||
Residential land | 2,662 | 129 | 1,532 | 40 | 1,094 | 117 | |||||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||
Commercial | 4,534 | 276 | 3,275 | 28 | 2,776 | 54 | |||||||||||||||||
Consumer | 21 | 4 | 22 | — | 1 | — | |||||||||||||||||
17,422 | 1,400 | 15,630 | 588 | 15,378 | 599 | ||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential 1-4 family | 8,390 | 359 | 8,878 | 363 | 9,818 | 493 | |||||||||||||||||
Commercial real estate | 886 | 37 | 982 | 42 | 1,241 | 54 | |||||||||||||||||
Home equity line of credit | 11,319 | 567 | 10,617 | 440 | 5,045 | 251 | |||||||||||||||||
Residential land | 27 | — | 37 | 3 | 1,308 | 97 | |||||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||
Commercial | 6,990 | 132 | 1,789 | 122 | 3,691 | 723 | |||||||||||||||||
Consumer | 360 | 24 | 57 | 4 | 57 | 3 | |||||||||||||||||
27,972 | 1,119 | 22,360 | 974 | 21,160 | 1,621 | ||||||||||||||||||
Total | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential 1-4 family | 16,559 | 1,266 | 17,473 | 808 | 19,258 | 809 | |||||||||||||||||
Commercial real estate | 902 | 37 | 982 | 42 | 1,332 | 65 | |||||||||||||||||
Home equity line of credit | 13,339 | 651 | 12,823 | 515 | 7,021 | 352 | |||||||||||||||||
Residential land | 2,689 | 129 | 1,569 | 43 | 2,402 | 214 | |||||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||
Commercial | 11,524 | 408 | 5,064 | 150 | 6,467 | 777 | |||||||||||||||||
Consumer | 381 | 28 | 79 | 4 | 58 | 3 | |||||||||||||||||
$ | 45,394 | $ | 2,519 | $ | 37,990 | $ | 1,562 | $ | 36,538 | $ | 2,220 |
Years ended | December 31, 2019 | December 31, 2018 | |||||||||||||||||||
(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) | |||||||||||||||
Real estate: | |||||||||||||||||||||
Residential 1-4 family | 11 | $ | 1,770 | $ | 190 | 3 | $ | 566 | $ | 26 | |||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||
Home equity line of credit | 3 | 442 | 73 | 53 | 6,659 | 578 | |||||||||||||||
Residential land | 3 | 1,086 | — | 2 | 1,338 | — | |||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||
Commercial | 8 | 5,523 | 417 | 12 | 2,165 | 211 | |||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||
25 | $ | 8,821 | $ | 680 | 70 | $ | 10,728 | $ | 815 | ||||||||||||
Year ended | December 31, 2017 | ||||||||||||||||||||
(dollars in thousands) | Number of contracts | Outstanding recorded investment (as of period end)1 | Related allowance (as of period end) | ||||||||||||||||||
Real estate: | |||||||||||||||||||||
Residential 1-4 family | 3 | $ | 469 | $ | 65 | ||||||||||||||||
Commercial real estate | — | — | — | ||||||||||||||||||
Home equity line of credit | 44 | 2,791 | 545 | ||||||||||||||||||
Residential land | 1 | 92 | — | ||||||||||||||||||
Commercial construction | — | — | — | ||||||||||||||||||
Residential construction | — | — | — | ||||||||||||||||||
Commercial | 8 | 525 | 250 | ||||||||||||||||||
Consumer | 1 | 58 | 29 | ||||||||||||||||||
57 | $ | 3,935 | $ | 889 |
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. |
Years ended December 31 | 2019 | 2018 | 2017 | |||||||||||||||||
(dollars in thousands) | Number of contracts | Recorded investment | Number of contracts | Recorded investment | Number of contracts | Recorded investment | ||||||||||||||
Troubled debt restructurings that subsequently defaulted | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Residential 1-4 family | — | $ | — | — | $ | — | 1 | $ | 222 | |||||||||||
Commercial real estate | — | — | — | — | — | — | ||||||||||||||
Home equity line of credit | — | — | 1 | 81 | — | — | ||||||||||||||
Residential land | — | — | — | — | — | — | ||||||||||||||
Commercial construction | — | — | — | — | — | — | ||||||||||||||
Residential construction | — | — | — | — | — | — | ||||||||||||||
Commercial | — | — | 1 | 246 | — | — | ||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||
— | $ | — | 2 | $ | 327 | 1 | $ | 222 |
(in thousands) | Gross carrying amount1 | Accumulated amortization1 | Valuation allowance | Net carrying amount | |||||||||||
December 31, 2019 | $ | 21,543 | $ | (12,442 | ) | $ | — | $ | 9,101 | ||||||
December 31, 2018 | $ | 18,556 | $ | (10,494 | ) | $ | — | $ | 8,062 |
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Mortgage servicing rights | |||||||||||
Balance, January 1 | $ | 8,062 | $ | 8,639 | $ | 9,373 | |||||
Amount capitalized | 2,987 | 1,045 | 1,239 | ||||||||
Amortization | (1,948 | ) | (1,622 | ) | (1,973 | ) | |||||
Sale of mortgage servicing rights | — | — | — | ||||||||
Other-than-temporary impairment | — | — | — | ||||||||
Carrying amount before valuation allowance, December 31 | 9,101 | 8,062 | 8,639 | ||||||||
Valuation allowance for mortgage servicing rights | |||||||||||
Balance, January 1 | — | — | — | ||||||||
Provision (recovery) | — | — | — | ||||||||
Other-than-temporary impairment | — | — | — | ||||||||
Balance, December 31 | — | — | — | ||||||||
Net carrying value of mortgage servicing rights | $ | 9,101 | $ | 8,062 | $ | 8,639 |
December 31 | 2019 | 2018 | |||||
(dollars in thousands) | |||||||
Unpaid principal balance | $ | 1,276,437 | $ | 1,188,514 | |||
Weighted average note rate | 3.96 | % | 3.98 | % | |||
Weighted average discount rate | 9.3 | % | 10.0 | % | |||
Weighted average prepayment speed | 11.4 | % | 6.5 | % |
December 31 | 2019 | 2018 | |||||
(in thousands) | |||||||
Prepayment rate: | |||||||
25 basis points adverse rate change | $ | (950 | ) | $ | (250 | ) | |
50 basis points adverse rate change | (1,947 | ) | (566 | ) | |||
Discount rate: | |||||||
25 basis points adverse rate change | (102 | ) | (139 | ) | |||
50 basis points adverse rate change | (202 | ) | (275 | ) |
December 31 | 2019 | 2018 | |||||||||||
(dollars in thousands) | Weighted-average stated rate | Amount | Weighted-average stated rate | Amount | |||||||||
Savings | 0.09 | % | $ | 2,379,522 | 0.07 | % | $ | 2,322,552 | |||||
Checking | |||||||||||||
Interest-bearing | 0.09 | 1,062,122 | 0.09 | 1,055,019 | |||||||||
Noninterest-bearing | — | 977,459 | — | 932,608 | |||||||||
Commercial checking | — | 932,223 | — | 868,119 | |||||||||
Money market | 0.69 | 150,751 | 0.63 | 152,713 | |||||||||
Time certificates | 1.42 | 769,825 | 1.61 | 827,841 | |||||||||
0.24 | % | $ | 6,271,902 | 0.27 | % | $ | 6,158,852 |
(in thousands) | |||
2020 | $ | 503,214 | |
2021 | 112,632 | ||
2022 | 87,132 | ||
2023 | 29,134 | ||
2024 | 35,253 | ||
Thereafter | 2,460 | ||
$ | 769,825 |
Years ended December 31 | 2019 | 2018 | 2017 | ||||||||
(in thousands) | |||||||||||
Time certificates | $ | 12,675 | $ | 11,044 | $ | 7,687 | |||||
Savings | 1,904 | 1,639 | 1,567 | ||||||||
Money market | 953 | 602 | 168 | ||||||||
Interest-bearing checking | 1,298 | 706 | 238 | ||||||||
$ | 16,830 | $ | 13,991 | $ | 9,660 |
(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 | ||||||||||||
December 31, 2019 | $ | 115 | $ | — | $ | 115 | ||||||
December 31, 2018 | 65 | — | 65 |
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 | ||||||||||||
December 31, 2019 | $ | 115 | $ | 130 | $ | — | ||||||
December 31, 2018 | 65 | 92 | — |
(dollars in millions) | 2019 | 2018 | 2017 | ||||||||
Amount outstanding as of December 31 | $ | 115 | $ | 65 | $ | 141 | |||||
Average amount outstanding during the year | $ | 80 | $ | 99 | $ | 98 | |||||
Maximum amount outstanding as of any month-end | $ | 115 | $ | 152 | $ | 141 | |||||
Weighted-average interest rate as of December 31 | 0.98 | % | 0.75 | % | 0.65 | % | |||||
Weighted-average interest rate during the year | 0.96 | % | 0.71 | % | 0.26 | % | |||||
Weighted-average remaining days to maturity as of December 31 | 1 | 1 | 1 |
December 31 | 2019 | 2018 | |||||||||||||||||||
Maturity | Repurchase liability | Weighted-average interest rate | Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | Repurchase liability | Weighted-average interest rate | Collateralized by mortgage-backed securities and federal agency obligations at fair value plus accrued interest | |||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Overnight | $ | 115,110 | 0.98 | % | $ | 129,527 | $ | 65,040 | 0.75 | % | $ | 92,290 | |||||||||
1 to 29 days | — | — | — | — | — | — | |||||||||||||||
30 to 90 days | — | — | — | — | — | — | |||||||||||||||
Over 90 days | — | — | — | — | — | — | |||||||||||||||
$ | 115,110 | 0.98 | % | $ | 129,527 | $ | 65,040 | 0.75 | % | $ | 92,290 |
Actual | Minimum required | Required to be well capitalized | |||||||||||||||
(dollars in thousands) | Capital | Ratio | Capital | Ratio | Capital | Ratio | |||||||||||
December 31, 2019 | |||||||||||||||||
Tier 1 leverage | 641,547 | 9.06 | % | 283,122 | 4.00 | % | 353,903 | 5.00 | % | ||||||||
Common equity tier 1 | 641,547 | 13.18 | % | 219,071 | 4.50 | % | 316,435 | 6.50 | % | ||||||||
Tier 1 capital | 641,547 | 13.18 | % | 292,094 | 6.00 | % | 389,459 | 8.00 | % | ||||||||
Total capital | 696,643 | 14.31 | % | 389,459 | 8.00 | % | 486,823 | 10.00 | % | ||||||||
December 31, 2018 | |||||||||||||||||
Tier 1 leverage | 606,291 | 8.70 | % | 278,811 | 4.00 | % | 348,514 | 5.00 | % | ||||||||
Common equity tier 1 | 606,291 | 12.80 | % | 213,190 | 4.50 | % | 307,941 | 6.50 | % | ||||||||
Tier 1 capital | 606,291 | 12.80 | % | 284,253 | 6.00 | % | 379,004 | 8.00 | % | ||||||||
Total capital | 660,151 | 13.93 | % | 379,004 | 8.00 | % | 473,755 | 10.00 | % |
December 31 | 2019 | 2018 | |||||||||||||
(in thousands) | Notional amount | Fair value | Notional amount | Fair value | |||||||||||
Interest rate lock commitments | $ | 23,171 | $ | 297 | $ | 10,180 | $ | 91 | |||||||
Forward commitments | 29,383 | (42 | ) | 10,132 | (43 | ) |
Derivative Financial Instruments Not Designated | |||||||||||||||
as Hedging Instruments 1 | |||||||||||||||
December 31 | 2019 | 2018 | |||||||||||||
(in thousands) | Asset derivatives | Liability derivatives | Asset derivatives | Liability derivatives | |||||||||||
Interest rate lock commitments | $ | 297 | $ | — | $ | 91 | $ | — | |||||||
Forward commitments | 3 | 45 | — | 43 | |||||||||||
$ | 300 | $ | 45 | $ | 91 | $ | 43 |
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 | 2019 | 2018 | 2017 | |||||||||
Interest rate lock commitments | Mortgage banking income | $ | 206 | $ | (40 | ) | $ | (290 | ) | ||||
Forward commitments | Mortgage banking income | 1 | (19 | ) | 153 | ||||||||
$ | 207 | $ | (59 | ) | $ | (137 | ) |
December 31 | 2019 | 2018 | |||||
(in thousands) | |||||||
Unfunded commitments to extend credit: | |||||||
Home equity line of credit | $ | 1,290,854 | $ | 1,242,804 | |||
Commercial and commercial real estate | 484,806 | 515,058 | |||||
Consumer | 70,088 | 70,292 | |||||
Residential 1-4 family | 21,131 | 17,552 | |||||
Commercial and financial standby letters of credit | 11,912 | 13,340 | |||||
Total | $ | 1,878,791 | $ | 1,859,046 |
Note 5·Short-term borrowings |
Note 6·Long-term debt |
December 31 | 2019 | 2018 | |||||
(dollars in thousands) | |||||||
Long-term debt of Utilities, net of unamortized debt issuance costs 1 | $ | 1,497,667 | $ | 1,418,802 | |||
HEI 2.99% term loan, due 2022 | 150,000 | 150,000 | |||||
HEI 5.67% senior notes, due 2021 | 50,000 | 50,000 | |||||
HEI 3.99% senior notes, due 2023 | 50,000 | 50,000 | |||||
HEI 4.58% senior notes, due 2025 | 50,000 | 50,000 | |||||
HEI 4.72% senior notes, due 2028 | 100,000 | 100,000 | |||||
Hamakua Energy 4.02% notes, due 2030, secured by real and personal property of Hamakua Energy, LLC | 59,699 | 63,438 | |||||
Mauo LIBOR + 1.375% loan, due 2022 | 9,349 | — | |||||
Less unamortized debt issuance costs | (2,350 | ) | (2,599 | ) | |||
$ | 1,964,365 | $ | 1,879,641 |
1 | See components of “Total long-term debt” and unamortized debt issuance costs in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization. |
Series 2019A | |
Aggregate principal amount | $50 million |
Fixed coupon interest rate | 4.21% |
Maturity date | May 15, 2034 |
Principal amount by company: | |
Hawaiian Electric | $30 million |
Hawaii Electric Light | $10 million |
Maui Electric | $10 million |
2004 Junior subordinated deferrable interest debentures redeemed | |
Aggregate principal amount | $51.5 million |
Fixed coupon interest rate | 6.50% |
Maturity date | May 15, 2034 |
Principal amount by company: | |
Hawaiian Electric | $31.5 million |
Hawaii Electric Light | $10 million |
Maui Electric | $10 million |
Refunding Series 2019 Special Purpose Revenue Bonds | |
Aggregate principal amount | $150 million |
Fixed coupon interest rate | 3.20% |
Maturity date | July 1, 2039 |
DBF loaned the proceeds to: | |
Hawaiian Electric | $90 million |
Hawaii Electric Light | $60 million |
Series 2009 Special Purpose Revenue Bonds Redeemed | |
Aggregate principal amount | $150 million |
Fixed coupon interest rate | 6.50% |
Maturity date | July 1, 2039 |
Principal amount by company: | |
Hawaiian Electric | $90 million |
Hawaii Electric Light | $60 million |
Series 2019 Special Purpose Revenue Bonds | |
Aggregate principal amount | $80 million |
Fixed coupon interest rate | 3.50% |
Maturity date | October 1, 2049 |
DBF loaned the proceeds to: | |
Hawaiian Electric | $70 million |
Hawaii Electric Light | $2.5 million |
Maui Electric | $7.5 million |
Note 7 · Shareholders’ equity |
HEI Consolidated | Hawaiian Electric Consolidated | ||||||||||||||||||||||||||
(in thousands) | Net unrealized gains (losses) on securities | Unrealized gains (losses) on derivatives | Retirement benefit plans | AOCI | Unrealized gains (losses) on derivatives | Retirement benefit plans | AOCI | ||||||||||||||||||||
Balance, December 31, 2016 | $ | (7,931 | ) | $ | (454 | ) | $ | (24,744 | ) | $ | (33,129 | ) | $ | (454 | ) | $ | 132 | $ | (322 | ) | |||||||
Current period other comprehensive income (loss) and reclassifications, net of taxes | (4,370 | ) | 454 | 2,544 | (1,372 | ) | 454 | (1,142 | ) | (688 | ) | ||||||||||||||||
Reclass of AOCI for tax rate reduction impact1 | (2,650 | ) | — | (4,790 | ) | (7,440 | ) | — | (209 | ) | (209 | ) | |||||||||||||||
Balance, December 31, 2017 | (14,951 | ) | — | (26,990 | ) | (41,941 | ) | — | (1,219 | ) | (1,219 | ) | |||||||||||||||
Current period other comprehensive income (loss) and reclassifications, net of taxes | (9,472 | ) | (436 | ) | 1,239 | (8,669 | ) | — | 1,318 | 1,318 | |||||||||||||||||
Balance, December 31, 2018 | (24,423 | ) | (436 | ) | (25,751 | ) | (50,610 | ) | — | 99 | 99 | ||||||||||||||||
Current period other comprehensive income (loss) and reclassifications, net of taxes | 26,904 | (1,177 | ) | 4,844 | 30,571 | — | (1,378 | ) | (1,378 | ) | |||||||||||||||||
Balance, December 31, 2019 | $ | 2,481 | $ | (1,613 | ) | $ | (20,907 | ) | $ | (20,039 | ) | $ | — | $ | (1,279 | ) | $ | (1,279 | ) |
1 | The Company and the Utilities adopted ASU No. 2018-02 as of the beginning of the fourth quarter of 2017 and elected to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. Other than this reclassification to retained earnings, the Company and the Utilities release the income tax effects in AOCI from AOCI when the specific AOCI items (e.g., on a security-by-security basis for ASB’s gains/losses on investment securities) are included in net income. |
Amount reclassified from AOCI | Affected line item in the Statement of Income/Balance Sheet | |||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | |||||||||||
(in thousands) | ||||||||||||||
HEI consolidated | ||||||||||||||
Net realized gains on securities included in net income | $ | (478 | ) | $ | — | $ | — | Revenues-bank (gains on sale of investment securities, net) | ||||||
Derivatives qualifying as cash flow hedges: | ||||||||||||||
Window forward contracts | — | — | 454 | Property, plant and equipment-electric utilities (2017) | ||||||||||
Retirement benefit plans: | ||||||||||||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | 10,107 | 21,015 | 15,737 | See Note 10 for additional details | ||||||||||
Impact of D&Os of the PUC included in regulatory assets | (16,177 | ) | 8,325 | (78,724 | ) | See Note 10 for additional details | ||||||||
Total reclassifications | $ | (6,548 | ) | $ | 29,340 | $ | (62,533 | ) | ||||||
Hawaiian Electric consolidated | ||||||||||||||
Derivatives qualifying as cash flow hedges | ||||||||||||||
Window forward contracts | $ | — | $ | — | $ | 454 | Property, plant and equipment (2017) | |||||||
Retirement benefit plans: | ||||||||||||||
Amortization of prior service credit and net losses recognized during the period in net periodic benefit cost | 9,550 | 19,012 | 14,477 | See Note 10 for additional details | ||||||||||
Impact of D&Os of the PUC included in regulatory assets | (16,177 | ) | 8,325 | (78,724 | ) | See Note 10 for additional details | ||||||||
Total reclassifications | $ | (6,627 | ) | $ | 27,337 | $ | (63,793 | ) |
Note 8 · Leases |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||
Year ended December 31, 2019 | Other leases | PPAs classified as leases | Total | Other leases | PPAs classified as leases | Total | |||||||||||||
(dollars in thousands) | |||||||||||||||||||
Operating lease cost | $ | 10,265 | $ | 63,319 | $ | 73,584 | $ | 4,955 | $ | 63,319 | $ | 68,274 | |||||||
Variable lease cost | 13,034 | 192,138 | 205,172 | 10,272 | 192,138 | 202,410 | |||||||||||||
Total lease cost | $ | 23,299 | $ | 255,457 | $ | 278,756 | $ | 15,227 | $ | 255,457 | $ | 270,684 | |||||||
Other information | |||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases | $ | 10,447 | $ | 62,594 | $ | 73,041 | $ | 5,768 | $ | 62,594 | $ | 68,362 | |||||||
Weighted-average remaining lease term—operating leases (in years) | 6.5 | 2.8 | 3.5 | 4.5 | 2.8 | 2.9 | |||||||||||||
Weighted-average discount rate—operating leases | 3.50 | % | 4.08 | % | 3.96 | % | 4.11 | % | 4.08 | % | 4.08 | % |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||
(in millions) | Other leases | PPAs classified as leases | Total | Other leases | PPAs classified as leases | Total | |||||||||||||
2020 | $ | 12 | $ | 63 | $ | 75 | $ | 7 | $ | 63 | $ | 70 | |||||||
2021 | 10 | 63 | 73 | 5 | 63 | 68 | |||||||||||||
2022 | 6 | 42 | 48 | 3 | 42 | 45 | |||||||||||||
2023 | 5 | — | 5 | 2 | — | 2 | |||||||||||||
2024 | 4 | — | 4 | 1 | — | 1 | |||||||||||||
Thereafter | 9 | — | 9 | 2 | — | 2 | |||||||||||||
Total lease payments | 46 | 168 | 214 | 20 | 168 | 188 | |||||||||||||
Less: Imputed interest | (5 | ) | (9 | ) | (14 | ) | (2 | ) | (9 | ) | (11 | ) | |||||||
Total present value of lease payments1 | $ | 41 | $ | 159 | $ | 200 | $ | 18 | $ | 159 | $ | 177 |
1 | The fixed capacity payment related to the existing PPA with PGV, which will expire on December 31, 2027, is not included as a lease liability as of December 31, 2019 as the facility has been offline since May 2018 due to lava flow on Hawaii Island. The annual capacity payment is approximately $7 million. The lease liability will be remeasured when PGV is back in service. |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||
(in millions) | Other leases | PPAs classified as leases | Total | Other leases | PPAs classified as leases | Total | |||||||||||||
2019 | $ | 11 | $ | 63 | $ | 74 | $ | 6 | $ | 63 | $ | 69 | |||||||
2020 | 9 | 63 | 72 | 6 | 63 | 69 | |||||||||||||
2021 | 8 | 63 | 71 | 5 | 63 | 68 | |||||||||||||
2022 | 5 | 42 | 47 | 2 | 42 | 44 | |||||||||||||
2023 | 4 | — | 4 | 2 | — | 2 | |||||||||||||
Thereafter | 12 | — | 12 | 3 | — | 3 | |||||||||||||
Total lease payments | $ | 49 | $ | 231 | $ | 280 | $ | 24 | $ | 231 | $ | 255 |
Note 9· Revenues |
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||||||||||
(in thousands) | Electric utility | Bank | Other | Total | Electric utility | Bank | Other | Total | ||||||||||||||||||||||||
Revenues from contracts with customers | ||||||||||||||||||||||||||||||||
Electric energy sales - residential | $ | 807,652 | $ | — | $ | — | $ | 807,652 | $ | 801,846 | $ | — | $ | — | $ | 801,846 | ||||||||||||||||
Electric energy sales - commercial | 846,110 | — | — | 846,110 | 853,672 | — | — | 853,672 | ||||||||||||||||||||||||
Electric energy sales - large light and power | 905,308 | — | — | 905,308 | 894,770 | — | — | 894,770 | ||||||||||||||||||||||||
Electric energy sales - other | 16,296 | — | — | 16,296 | 17,243 | — | — | 17,243 | ||||||||||||||||||||||||
Bank fees | — | 46,659 | — | 46,659 | — | 47,300 | — | 47,300 | ||||||||||||||||||||||||
Total revenues from contracts with customers | 2,575,366 | 46,659 | — | 2,622,025 | 2,567,531 | 47,300 | — | 2,614,831 | ||||||||||||||||||||||||
Revenues from other sources | ||||||||||||||||||||||||||||||||
Regulatory revenue | (54,101 | ) | — | — | (54,101 | ) | (37,687 | ) | — | — | (37,687 | ) | ||||||||||||||||||||
Bank interest and dividend income | — | 266,554 | — | 266,554 | — | 258,225 | — | 258,225 | ||||||||||||||||||||||||
Other bank noninterest income | — | 15,357 | — | 15,357 | — | 8,750 | — | 8,750 | ||||||||||||||||||||||||
Other | 24,677 | — | 89 | 24,766 | 16,681 | — | 49 | 16,730 | ||||||||||||||||||||||||
Total revenues from other sources | (29,424 | ) | 281,911 | 89 | 252,576 | (21,006 | ) | 266,975 | 49 | 246,018 | ||||||||||||||||||||||
Total revenues | $ | 2,545,942 | $ | 328,570 | $ | 89 | $ | 2,874,601 | $ | 2,546,525 | $ | 314,275 | $ | 49 | $ | 2,860,849 | ||||||||||||||||
Timing of revenue recognition | ||||||||||||||||||||||||||||||||
Services/goods transferred at a point in time | $ | — | $ | 46,659 | $ | — | $ | 46,659 | $ | — | $ | 47,300 | $ | — | $ | 47,300 | ||||||||||||||||
Services/goods transferred over time | 2,575,366 | — | — | 2,575,366 | 2,567,531 | — | — | 2,567,531 | ||||||||||||||||||||||||
Total revenues from contracts with customers | $ | 2,575,366 | $ | 46,659 | $ | — | $ | 2,622,025 | $ | 2,567,531 | $ | 47,300 | $ | — | $ | 2,614,831 |
Note 10 · Retirement benefits |
2019 | 2018 | ||||||||||||||
(in thousands) | Pension benefits | Other benefits | Pension benefits | Other benefits | |||||||||||
HEI consolidated | |||||||||||||||
Benefit obligation, January 1 | $ | 1,991,384 | $ | 188,666 | $ | 2,094,356 | $ | 212,601 | |||||||
Service cost | 62,135 | 2,209 | 68,987 | 2,721 | |||||||||||
Interest cost | 84,267 | 8,004 | 77,374 | 7,933 | |||||||||||
Actuarial losses (gains) | 224,421 | 25,998 | (171,226 | ) | (25,977 | ) | |||||||||
Participants contributions | — | 2,351 | — | 2,505 | |||||||||||
Benefits paid and expenses | (83,924 | ) | (11,589 | ) | (78,107 | ) | (11,117 | ) | |||||||
Benefit obligation, December 31 | 2,278,283 | 215,639 | 1,991,384 | 188,666 | |||||||||||
Fair value of plan assets, January 1 | 1,479,067 | 173,693 | 1,618,703 | 193,995 | |||||||||||
Actual return on plan assets | 354,072 | 35,525 | (101,406 | ) | (11,846 | ) | |||||||||
Employer contributions | 48,629 | — | 38,496 | — | |||||||||||
Participants contributions | — | 2,351 | — | 2,505 | |||||||||||
Benefits paid and expenses | (82,568 | ) | (10,738 | ) | (76,726 | ) | (10,961 | ) | |||||||
Fair value of plan assets, December 31 | 1,799,200 | 200,831 | 1,479,067 | 173,693 | |||||||||||
Accrued benefit asset (liability), December 31 | $ | (479,083 | ) | $ | (14,808 | ) | $ | (512,317 | ) | $ | (14,973 | ) | |||
Other assets | $ | 19,396 | $ | — | $ | 10,930 | $ | — | |||||||
Defined benefit pension and other postretirement benefit plans liability | (498,479 | ) | (14,808 | ) | (523,247 | ) | (14,973 | ) | |||||||
Accrued benefit asset (liability), December 31 | $ | (479,083 | ) | $ | (14,808 | ) | $ | (512,317 | ) | $ | (14,973 | ) | |||
AOCI debit, January 1 (excluding impact of PUC D&Os) | $ | 536,920 | $ | 1,962 | $ | 527,830 | $ | 1,474 | |||||||
Recognized during year – prior service credit | 42 | 1,806 | 42 | 1,805 | |||||||||||
Recognized during year – net actuarial (losses) gains | (15,479 | ) | 13 | (30,084 | ) | (95 | ) | ||||||||
Occurring during year – net actuarial losses (gains) | (17,662 | ) | 2,829 | 39,132 | (1,222 | ) | |||||||||
AOCI debit before cumulative impact of PUC D&Os, December 31 | 503,821 | 6,610 | 536,920 | 1,962 | |||||||||||
Cumulative impact of PUC D&Os | (474,628 | ) | (7,458 | ) | (498,944 | ) | (4,929 | ) | |||||||
AOCI debit/(credit), December 31 | $ | 29,193 | $ | (848 | ) | $ | 37,976 | $ | (2,967 | ) | |||||
Net actuarial loss | $ | 503,813 | $ | 11,707 | $ | 536,954 | $ | 8,865 | |||||||
Prior service cost (gain) | 8 | (5,097 | ) | (34 | ) | (6,903 | ) | ||||||||
AOCI debit before cumulative impact of PUC D&Os, December 31 | 503,821 | 6,610 | 536,920 | 1,962 | |||||||||||
Cumulative impact of PUC D&Os | (474,628 | ) | (7,458 | ) | (498,944 | ) | (4,929 | ) | |||||||
AOCI debit/(credit), December 31 | 29,193 | (848 | ) | 37,976 | (2,967 | ) | |||||||||
Income taxes (benefits) | (7,677 | ) | 219 | (10,023 | ) | 765 | |||||||||
AOCI debit/(credit), net of taxes (benefits), December 31 | $ | 21,516 | $ | (629 | ) | $ | 27,953 | $ | (2,202 | ) | |||||
As of December 31, 2019 and 2018, the other postretirement benefit plans shown in the table above had ABOs in excess of plan assets. |
2019 | 2018 | ||||||||||||||
(in thousands) | Pension benefits | Other benefits | Pension benefits | Other benefits | |||||||||||
Hawaiian Electric consolidated | |||||||||||||||
Benefit obligation, January 1 | $ | 1,837,653 | $ | 181,162 | $ | 1,928,648 | $ | 204,644 | |||||||
Service cost | 60,461 | 2,191 | 67,359 | 2,704 | |||||||||||
Interest cost | 77,851 | 7,673 | 71,294 | 7,628 | |||||||||||
Actuarial losses (gains) | 212,310 | 25,123 | (158,258 | ) | (25,330 | ) | |||||||||
Participants contributions | — | 2,311 | — | 2,472 | |||||||||||
Benefits paid and expenses | (77,060 | ) | (11,382 | ) | (71,535 | ) | (10,958 | ) | |||||||
Transfers | (311 | ) | (5 | ) | 145 | 2 | |||||||||
Benefit obligation, December 31 | 2,110,904 | 207,073 | 1,837,653 | 181,162 | |||||||||||
Fair value of plan assets, January 1 | 1,343,113 | 170,862 | 1,468,403 | 190,814 | |||||||||||
Actual return on plan assets | 326,204 | 34,928 | (91,836 | ) | (11,625 | ) | |||||||||
Employer contributions | 47,808 | — | 37,550 | — | |||||||||||
Participants contributions | — | 2,311 | — | 2,472 | |||||||||||
Benefits paid and expenses | (76,581 | ) | (10,532 | ) | (71,060 | ) | (10,801 | ) | |||||||
Other | (127 | ) | (5 | ) | 56 | 2 | |||||||||
Fair value of plan assets, December 31 | 1,640,417 | 197,564 | 1,343,113 | 170,862 | |||||||||||
Accrued benefit liability, December 31 | $ | (470,487 | ) | $ | (9,509 | ) | $ | (494,540 | ) | $ | (10,300 | ) | |||
Other liabilities (short-term) | (518 | ) | (715 | ) | (512 | ) | (669 | ) | |||||||
Defined benefit pension and other postretirement benefit plans liability | (469,969 | ) | (8,794 | ) | (494,028 | ) | (9,631 | ) | |||||||
Accrued benefit liability, December 31 | $ | (470,487 | ) | $ | (9,509 | ) | $ | (494,540 | ) | $ | (10,300 | ) | |||
AOCI debit, January 1 (excluding impact of PUC D&Os) | $ | 502,189 | $ | 1,551 | $ | 493,464 | $ | 839 | |||||||
Recognized during year – prior service credit (cost) | (7 | ) | 1,803 | (8 | ) | 1,803 | |||||||||
Recognized during year – net actuarial losses | (14,658 | ) | — | (27,302 | ) | (98 | ) | ||||||||
Occurring during year – net actuarial losses (gains) | (9,446 | ) | 2,376 | 36,035 | (993 | ) | |||||||||
AOCI debit before cumulative impact of PUC D&Os, December 31 | 478,078 | 5,730 | 502,189 | 1,551 | |||||||||||
Cumulative impact of PUC D&Os | (474,628 | ) | (7,458 | ) | (498,944 | ) | (4,929 | ) | |||||||
AOCI debit/(credit), December 31 | $ | 3,450 | $ | (1,728 | ) | $ | 3,245 | $ | (3,378 | ) | |||||
Net actuarial loss | $ | 478,069 | $ | 10,815 | $ | 502,173 | $ | 8,439 | |||||||
Prior service cost (gain) | 9 | (5,085 | ) | 16 | (6,888 | ) | |||||||||
AOCI debit before cumulative impact of PUC D&Os, December 31 | 478,078 | 5,730 | 502,189 | 1,551 | |||||||||||
Cumulative impact of PUC D&Os | (474,628 | ) | (7,458 | ) | (498,944 | ) | (4,929 | ) | |||||||
AOCI debit/(credit), December 31 | 3,450 | (1,728 | ) | 3,245 | (3,378 | ) | |||||||||
Income taxes (benefits) | (888 | ) | 445 | (836 | ) | 870 | |||||||||
AOCI debit/(credit), net of taxes (benefits), December 31 | $ | 2,562 | $ | (1,283 | ) | $ | 2,409 | $ | (2,508 | ) |
Pension benefits1 | Other benefits2 | ||||||||||||||||||||
Investment policy | Investment policy | ||||||||||||||||||||
December 31 | 2019 | 2018 | Target | Range | 2019 | 2018 | Target | Range | |||||||||||||
Assets held by category | |||||||||||||||||||||
Equity securities | 71 | % | 69 | % | 70 | % | 65-75 | 71 | % | 70 | % | 70 | % | 65-75 | |||||||
Fixed income securities | 29 | 31 | 30 | 25-35 | 29 | 30 | 30 | 25-35 | |||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
1 | Asset allocation (excluding cash) is applicable to only HEI and the Utilities. As of December 31, 2019 and 2018, nearly all of ASB’s pension assets were invested in fixed income securities. |
2 | Asset allocation (excluding cash) is applicable to only HEI and the Utilities. ASB does not fund its other benefits. |
Pension benefits | Other benefits | ||||||||||||||||||||||||||||||
Fair value measurements using | Fair value measurements using | ||||||||||||||||||||||||||||||
(in millions) | December 31 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | December 31 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||
Equity securities | $ | 470 | $ | 470 | $ | — | $ | — | $ | 61 | $ | 61 | $ | — | $ | — | |||||||||||||||
Equity index and exchange-traded funds | 610 | 610 | — | — | 69 | 69 | — | — | |||||||||||||||||||||||
Equity investments at net asset value (NAV) | 78 | — | — | — | 11 | — | — | — | |||||||||||||||||||||||
Total equity investments | 1,158 | 1,080 | — | — | 141 | 130 | — | — | |||||||||||||||||||||||
Fixed income securities and public mutual funds | 353 | 123 | 230 | — | 52 | 49 | 2 | — | |||||||||||||||||||||||
Fixed income investments at NAV | 245 | — | — | — | 4 | — | — | — | |||||||||||||||||||||||
Total fixed income investments | 598 | 123 | 230 | — | 56 | 49 | 2 | — | |||||||||||||||||||||||
Cash equivalents at NAV | 39 | — | — | — | 4 | — | — | — | |||||||||||||||||||||||
Total | 1,795 | $ | 1,203 | $ | 230 | $ | — | 201 | $ | 179 | $ | 2 | $ | — | |||||||||||||||||
Cash, receivables and payables, net | 4 | — | |||||||||||||||||||||||||||||
Fair value of plan assets | $ | 1,799 | $ | 201 | |||||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||
Equity securities | $ | 507 | $ | 507 | $ | — | $ | — | $ | 65 | $ | 65 | $ | — | $ | — | |||||||||||||||
Equity index and exchange-traded funds | 348 | 348 | — | — | 42 | 42 | — | — | |||||||||||||||||||||||
Equity investments at NAV | 65 | — | — | — | 10 | — | — | — | |||||||||||||||||||||||
Total equity investments | 920 | 855 | — | — | 117 | 107 | — | — | |||||||||||||||||||||||
Fixed income securities and public mutual funds | 310 | 123 | 187 | — | 47 | 45 | 2 | — | |||||||||||||||||||||||
Fixed income investments at NAV | 208 | — | — | — | 4 | — | — | — | |||||||||||||||||||||||
Total fixed income investments | 518 | 123 | 187 | — | 51 | 45 | 2 | — | |||||||||||||||||||||||
Cash equivalents at NAV | 36 | — | — | — | 5 | — | — | — | |||||||||||||||||||||||
Total | 1,474 | $ | 978 | $ | 187 | $ | — | 173 | $ | 152 | $ | 2 | $ | — | |||||||||||||||||
Cash, receivables and payables, net | 5 | 1 | |||||||||||||||||||||||||||||
Fair value of plan assets | $ | 1,479 | $ | 174 |
Pension benefits | Other benefits | ||||||||||||||
Measured at net asset value | December 31 | Redemption frequency | Redemption notice period | December 31 | Redemption frequency | Redemption notice period | |||||||||
(in millions) | |||||||||||||||
2019 | |||||||||||||||
Non U.S. equity funds (a) | $ | 78 | Daily-Monthly | 5-30 days | $ | 11 | Daily-Monthly | 5-30 days | |||||||
Fixed income investments (b) | 245 | Monthly | 15 days | 4 | Monthly | 15 days | |||||||||
Cash equivalents (c) | 39 | Daily | 0-1 day | 4 | Daily | 0-1 day | |||||||||
$ | 362 | $ | 19 | ||||||||||||
2018 | |||||||||||||||
Non U.S. equity funds (a) | $ | 65 | Daily-Monthly | 5-30 days | $ | 10 | Daily-Monthly | 5-30 days | |||||||
Fixed income investments (b) | 208 | Monthly | 15 days | 4 | Monthly | 15 days | |||||||||
Cash equivalents (c) | 36 | Daily | 0-1 day | 5 | Daily | 0-1 day | |||||||||
$ | 309 | $ | 19 |
(a) | Represents investments in funds that primarily invest in non-U.S., emerging markets equities. Redemption frequency for pension benefits assets as of December 31, 2019 were: daily, 60% and monthly, 40%, and as of December 31, 2018 were daily, 32% and monthly, 68%. Redemption frequency for other benefits assets as of December 31, 2019 were: daily, 59% and monthly, 41% and as of December 31, 2018 were: daily, 27% and monthly, 73%. |
(b) | Represents investments in fixed income securities invested in a US-dollar denominated fund that seeks to exceed the Barclays Capital Long Corporate A or better Index through investments in US-dollar denominated fixed income securities and commingled vehicles. |
(c) | Represents investments in cash equivalent funds. This class includes funds that invest primarily in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. For pension benefits, the fund may also invest in fixed income securities of investment grade issuers. |
Pension benefits | Other benefits | ||||||||||||||||
December 31 | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||
Benefit obligation | |||||||||||||||||
Discount rate | 3.61 | % | 4.31 | % | 3.74 | % | 3.52 | % | 4.34 | % | 3.72 | % | |||||
Rate of compensation increase | 3.5 | 3.5 | 3.5 | NA | NA | NA | |||||||||||
Net periodic pension/benefit cost (years ended) | |||||||||||||||||
Discount rate | 4.31 | 3.74 | 4.26 | 4.34 | 3.72 | 4.22 | |||||||||||
Expected return on plan assets1 | 7.25 | 7.50 | 7.50 | 7.25 | 7.50 | 7.50 | |||||||||||
Rate of compensation increase2 | 3.5 | 3.5 | 3.5 | NA | NA | NA |
Pension benefits | Other benefits | ||||||||||||||||||||||
(in thousands) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
HEI consolidated | |||||||||||||||||||||||
Service cost | $ | 62,135 | $ | 68,987 | $ | 64,906 | $ | 2,209 | $ | 2,721 | $ | 3,374 | |||||||||||
Interest cost | 84,267 | 77,374 | 81,185 | 8,004 | 7,933 | 9,453 | |||||||||||||||||
Expected return on plan assets | (111,989 | ) | (108,953 | ) | (102,745 | ) | (12,356 | ) | (12,908 | ) | (12,326 | ) | |||||||||||
Amortization of net prior service gain | (42 | ) | (42 | ) | (55 | ) | (1,806 | ) | (1,805 | ) | (1,793 | ) | |||||||||||
Amortization of net actuarial losses | 15,479 | 30,084 | 26,496 | (13 | ) | 95 | 1,130 | ||||||||||||||||
Net periodic pension/benefit cost | 49,850 | 67,450 | 69,787 | (3,962 | ) | (3,964 | ) | (162 | ) | ||||||||||||||
Impact of PUC D&Os | 48,143 | 25,828 | (18,004 | ) | 3,258 | 3,842 | 1,211 | ||||||||||||||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | $ | 97,993 | $ | 93,278 | $ | 51,783 | $ | (704 | ) | $ | (122 | ) | $ | 1,049 | |||||||||
Hawaiian Electric consolidated | |||||||||||||||||||||||
Service cost | $ | 60,461 | $ | 67,359 | $ | 63,059 | $ | 2,191 | $ | 2,704 | $ | 3,353 | |||||||||||
Interest cost | 77,851 | 71,294 | 74,632 | 7,673 | 7,628 | 9,115 | |||||||||||||||||
Expected return on plan assets | (104,632 | ) | (102,368 | ) | (95,892 | ) | (12,180 | ) | (12,713 | ) | (12,147 | ) | |||||||||||
Amortization of net prior service (gain) cost | 7 | 8 | 8 | (1,803 | ) | (1,803 | ) | (1,804 | ) | ||||||||||||||
Amortization of net actuarial losses | 14,658 | 27,302 | 24,392 | — | 98 | 1,102 | |||||||||||||||||
Net periodic pension/benefit cost | 48,345 | 63,595 | 66,199 | (4,119 | ) | (4,086 | ) | (381 | ) | ||||||||||||||
Impact of PUC D&Os | 48,143 | 25,828 | (18,004 | ) | 3,258 | 3,842 | 1,211 | ||||||||||||||||
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os) | $ | 96,488 | $ | 89,423 | $ | 48,195 | $ | (861 | ) | $ | (244 | ) | $ | 830 |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||
December 31 | 2019 | 2018 | 2019 | 2018 | |||||||||||
(in billions) | |||||||||||||||
Defined benefit plans - ABOs | $ | 2.0 | $ | 1.7 | $ | 1.8 | $ | 1.6 | |||||||
Defined benefit plans with ABO in excess of plan assets | |||||||||||||||
ABOs | 1.9 | 1.6 | 1.8 | 1.6 | |||||||||||
Fair value of plan assets | 1.7 | 1.4 | 1.6 | 1.3 | |||||||||||
Defined benefit plans with PBOs in excess of plan assets | |||||||||||||||
PBOs | 2.2 | 1.9 | 2.1 | 1.8 | |||||||||||
Fair value of plan assets | 1.7 | 1.4 | 1.6 | 1.3 |
Note 11 ·Share-based compensation |
(in millions) | 2019 | 2018 | 2017 | ||||||||
HEI consolidated | |||||||||||
Share-based compensation expense1 | $ | 10.0 | $ | 7.8 | $ | 5.4 | |||||
Income tax benefit | 1.4 | 1.1 | 1.9 | ||||||||
Hawaiian Electric consolidated | |||||||||||
Share-based compensation expense1 | 3.2 | 2.7 | 1.9 | ||||||||
Income tax benefit | 0.6 | 0.5 | 0.7 |
1 | For 2019, 2018 and 2017, the Company has not capitalized any share-based compensation. |
(dollars in millions) | 2019 | 2018 | 2017 | ||||||||
Shares granted | 36,344 | 38,821 | 35,770 | ||||||||
Fair value | $ | 1.6 | $ | 1.3 | $ | 1.2 | |||||
Income tax benefit | 0.4 | 0.3 | 0.5 |
2019 | 2018 | 2017 | |||||||||||||||||||||
Shares | (1) | Shares | (1) | Shares | (1) | ||||||||||||||||||
Outstanding, January 1 | 200,358 | $ | 33.05 | 197,047 | $ | 31.53 | 220,683 | $ | 29.57 | ||||||||||||||
Granted | 96,565 | 37.82 | 93,853 | 34.12 | 97,873 | 33.47 | |||||||||||||||||
Vested | (76,813 | ) | 32.61 | (75,683 | ) | 30.56 | (92,147 | ) | 28.88 | ||||||||||||||
Forfeited | (12,469 | ) | 34.20 | (14,859 | ) | 32.35 | (29,362 | ) | 31.57 | ||||||||||||||
Outstanding, December 31 | 207,641 | $ | 35.36 | 200,358 | $ | 33.05 | 197,047 | $ | 31.53 | ||||||||||||||
Total weighted-average grant-date fair value of shares granted (in millions) | $ | 3.7 | $ | 3.2 | $ | 3.3 |
(1) | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
2019 | 2018 | 2017 | |||||||||||||||||||||
Shares | (1) | Shares | (1) | Shares | (1) | ||||||||||||||||||
Outstanding, January 1 | 65,578 | $ | 38.81 | 32,904 | $ | 39.51 | 83,106 | $ | 22.95 | ||||||||||||||
Granted | 35,215 | 41.07 | 37,832 | 38.21 | 37,204 | 39.51 | |||||||||||||||||
Vested (issued or unissued and cancelled) | — | — | — | — | (83,106 | ) | 22.95 | ||||||||||||||||
Forfeited | (4,391 | ) | 39.19 | (5,158 | ) | 38.84 | (4,300 | ) | 39.51 | ||||||||||||||
Outstanding, December 31 | 96,402 | $ | 39.62 | 65,578 | $ | 38.81 | 32,904 | $ | 39.51 | ||||||||||||||
Total weighted-average grant-date fair value of shares granted (in millions) | $ | 1.4 | $ | 1.4 | $ | 1.5 |
(1) | Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model. |
2019 | 2018 | 2017 | |||||||||
Risk-free interest rate | 2.48 | % | 2.29 | % | 1.46 | % | |||||
Expected life in years | 3 | 3 | 3 | ||||||||
Expected volatility | 15.8 | % | 17.0 | % | 20.1 | % | |||||
Range of expected volatility for Peer Group | 15.0% to 73.2% | 15.1% to 26.2% | 15.4% to 26.0% | ||||||||
Grant date fair value (per share) | $ | 41.07 | $ | 38.20 | $ | 39.51 |
2019 | 2018 | 2017 | |||||||||||||||||||||
Shares | (1) | Shares | (1) | Shares | (1) | ||||||||||||||||||
Outstanding, January 1 | 276,169 | $ | 33.80 | 131,616 | $ | 33.47 | 109,816 | $ | 25.18 | ||||||||||||||
Granted | 140,855 | 37.78 | 151,328 | 34.12 | 148,818 | 33.47 | |||||||||||||||||
Vested | — | — | — | — | (109,816 | ) | 25.18 | ||||||||||||||||
Increase above target (cancelled) | 4,314 | 33.53 | 13,858 | 33.49 | — | — | |||||||||||||||||
Forfeited | (17,570 | ) | 34.66 | (20,633 | ) | 33.80 | (17,202 | ) | 33.48 | ||||||||||||||
Outstanding, December 31 | 403,768 | $ | 35.15 | 276,169 | $ | 33.80 | 131,616 | $ | 33.47 | ||||||||||||||
Total weighted-average grant-date fair value of shares granted (at target performance levels) (in millions) | $ | 5.3 | $ | 5.2 | $ | 5.0 |
(1) | Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant. |
Note 12·Income taxes |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Federal | |||||||||||||||||||||||
Current | $ | 28,736 | $ | 42,903 | $ | 61,534 | $ | 21,751 | $ | 29,649 | $ | 36,267 | |||||||||||
Deferred* | (4,353 | ) | (6,099 | ) | 33,967 | (7,793 | ) | (5,245 | ) | 35,229 | |||||||||||||
Deferred tax credits, net** | 13,410 | (12 | ) | (20 | ) | 13,155 | (12 | ) | (20 | ) | |||||||||||||
37,793 | 36,792 | 95,481 | 27,113 | 24,392 | 71,476 | ||||||||||||||||||
State | |||||||||||||||||||||||
Current | 10,472 | 17,361 | 10,076 | 5,579 | 13,210 | 8,947 | |||||||||||||||||
Deferred | (10,732 | ) | (3,269 | ) | 3,868 | (8,491 | ) | (2,737 | ) | 2,808 | |||||||||||||
Deferred tax credits, net** | 14,104 | (87 | ) | (32 | ) | 14,104 | (87 | ) | (32 | ) | |||||||||||||
13,844 | 14,005 | 13,912 | 11,192 | 10,386 | 11,723 | ||||||||||||||||||
Total | $ | 51,637 | $ | 50,797 | $ | 109,393 | $ | 38,305 | $ | 34,778 | $ | 83,199 |
* | The 2018 deferred income tax expense includes the final adjustment to reduce the provisional amount recorded in 2017 pursuant to Staff Accounting Bulletin No. 118 (SAB No. 118). See “Major tax developments” disclosure below for details of the accounting for the enactment of the Tax Act. |
** | Represents 2019 federal and state tax credits, primarily related to the West Loch PV project, deferred and amortized starting in 2020. See West Loch PV Project discussion in Note 3. |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
Years ended December 31 | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Amount at the federal statutory income tax rate | $ | 56,996 | $ | 53,437 | $ | 96,796 | $ | 41,399 | $ | 37,889 | $ | 71,801 | |||||||||||
Increase (decrease) resulting from: | |||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 11,658 | 11,832 | 9,789 | 8,703 | 8,080 | 7,584 | |||||||||||||||||
Net deferred tax asset (liability) adjustment related to the Tax Act | (9,255 | ) | (9,540 | ) | 13,420 | (9,255 | ) | (9,285 | ) | 9,168 | |||||||||||||
Other, net | (7,762 | ) | (4,932 | ) | (10,612 | ) | (2,542 | ) | (1,906 | ) | (5,354 | ) | |||||||||||
Total | $ | 51,637 | $ | 50,797 | $ | 109,393 | $ | 38,305 | $ | 34,778 | $ | 83,199 | |||||||||||
Effective income tax rate | 19.0 | % | 20.0 | % | 39.6 | % | 19.4 | % | 19.3 | % | 40.6 | % |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||
December 31 | 2019 | 2018 | 2019 | 2018 | |||||||||||
(in thousands) | |||||||||||||||
Deferred tax assets | |||||||||||||||
Regulatory liabilities, excluding amounts attributable to property, plant and equipment | $ | 100,427 | $ | 104,868 | $ | 100,427 | $ | 104,868 | |||||||
Operating lease liabilities | 51,573 | — | 45,608 | — | |||||||||||
Allowance for bad debts | 14,858 | 14,647 | 560 | 659 | |||||||||||
Other1 | 54,028 | 46,036 | 41,181 | 26,522 | |||||||||||
Total deferred tax assets | 220,886 | 165,551 | 187,776 | 132,049 | |||||||||||
Deferred tax liabilities | |||||||||||||||
Property, plant and equipment related | 464,312 | 437,644 | 458,349 | 434,831 | |||||||||||
Operating lease right-of-use assets | 51,542 | — | 45,608 | — | |||||||||||
Regulatory assets, excluding amounts attributable to property, plant and equipment | 33,897 | 37,345 | 33,897 | 37,345 | |||||||||||
Deferred RAM and RBA revenues | — | 11,278 | — | 11,278 | |||||||||||
Retirement benefits | 9,684 | 20,173 | 13,072 | 25,430 | |||||||||||
Other | 40,776 | 31,629 | 14,001 | 6,362 | |||||||||||
Total deferred tax liabilities | 600,211 | 538,069 | 564,927 | 515,246 | |||||||||||
Net deferred income tax liability | $ | 379,325 | $ | 372,518 | $ | 377,151 | $ | 383,197 |
1 | As of December 31, 2019, HEI consolidated and Hawaiian Electric consolidated have deferred tax assets of $8.7 million and $6.7 million respectively, relating to the benefit of state tax credit carryforwards of $11.7 million and $9 million respectively. These state tax credit carryforwards primarily relate to the West Loch PV project and do not expire. The Company concluded that as of December 31, 2019, a valuation allowance is not required. |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
Unrecognized tax benefits, January 1 | $ | 2.1 | $ | 4.0 | $ | 3.8 | $ | 1.6 | $ | 3.5 | 3.8 | ||||||||||||
Additions based on tax positions taken during the year | 0.5 | 0.3 | 0.9 | 0.5 | 0.3 | 0.4 | |||||||||||||||||
Reductions based on tax positions taken during the year | — | — | (0.2 | ) | — | — | (0.2 | ) | |||||||||||||||
Additions for tax positions of prior years | 0.1 | 0.1 | — | 0.1 | 0.1 | — | |||||||||||||||||
Reductions for tax positions of prior years | (0.2 | ) | (0.1 | ) | (0.5 | ) | (0.2 | ) | (0.1 | ) | (0.5 | ) | |||||||||||
Lapses of statute of limitations | (0.3 | ) | (2.2 | ) | — | (0.3 | ) | (2.2 | ) | — | |||||||||||||
Unrecognized tax benefits, December 31 | $ | 2.2 | $ | 2.1 | $ | 4.0 | $ | 1.7 | $ | 1.6 | $ | 3.5 |
Note 13·Cash flows |
Years ended December 31 | 2019 | 2018 | 2017 | ||||||||
(in millions) | |||||||||||
Supplemental disclosures of cash flow information | |||||||||||
HEI consolidated | |||||||||||
Interest paid to non-affiliates, net of amounts capitalized | $ | 107 | $ | 102 | $ | 83 | |||||
Income taxes paid (including refundable credits) | 56 | 72 | 55 | ||||||||
Income taxes refunded (including refundable credits) | 4 | 34 | 1 | ||||||||
Hawaiian Electric consolidated | |||||||||||
Interest paid to non-affiliates, net of amounts capitalized | 68 | 73 | 63 | ||||||||
Income taxes paid (including refundable credits) | 55 | 64 | 26 | ||||||||
Income taxes refunded (including refundable credits) | 4 | 31 | — | ||||||||
Supplemental disclosures of noncash activities | |||||||||||
HEI consolidated | |||||||||||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 64 | 59 | 38 | ||||||||
Loans transferred from held for investment to held for sale (investing) | — | 1 | 41 | ||||||||
Common stock issued (gross) for director and executive/management compensation (financing)1 | 5 | 4 | 11 | ||||||||
Obligations to fund low income housing investments, net (investing) | 11 | 12 | 13 | ||||||||
Transfer of retail repurchase agreements to deposit liabilities (financing) | — | 102 | — | ||||||||
Hawaiian Electric consolidated | |||||||||||
Unpaid invoices and accruals for capital expenditures, balance, end of period (investing) | 62 | 44 | 38 | ||||||||
HEI Consolidated and Hawaiian Electric consolidated | |||||||||||
Electric utility property, plant and equipment | |||||||||||
Estimated fair value of noncash contributions in aid of construction (investing) | 9 | 14 | 18 | ||||||||
Acquisition of Hawaiian Telcom’s interest in joint poles (investing) | — | 48 | — |
Note 14·Regulatory restrictions on net assets |
Note 15·Significant group concentrations of credit risk |
Note 16·Fair value measurements |
Estimated fair value | |||||||||||||||||||
(in thousands) | Carrying or notional amount | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||||
December 31, 2016 | |||||||||||||||||||
Financial assets | |||||||||||||||||||
HEI consolidated | |||||||||||||||||||
Money market funds | $ | 13,085 | $ | — | $ | 13,085 | $ | — | $ | 13,085 | |||||||||
Available-for-sale investment securities | 1,105,182 | — | 1,089,755 | 15,427 | 1,105,182 | ||||||||||||||
Stock in Federal Home Loan Bank | 11,218 | — | 11,218 | — | 11,218 | ||||||||||||||
Loans receivable, net | 4,701,977 | — | 13,333 | 4,839,493 | 4,852,826 | ||||||||||||||
Mortgage servicing rights | 9,373 | — | — | 13,216 | 13,216 | ||||||||||||||
Bank-owned life insurance | 143,197 | — | 143,197 | — | 143,197 | ||||||||||||||
Derivative assets | 23,578 | — | 453 | — | 453 | ||||||||||||||
Financial liabilities | |||||||||||||||||||
HEI consolidated | |||||||||||||||||||
Deposit liabilities | 5,548,929 | — | 5,546,644 | — | 5,546,644 | ||||||||||||||
Other bank borrowings | 192,618 | — | 193,991 | — | 193,991 | ||||||||||||||
Long-term debt, net—other than bank | 1,619,019 | — | 1,704,717 | — | 1,704,717 | ||||||||||||||
Derivative liabilities | 53,852 | 129 | 823 | — | 952 | ||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||||
Long-term debt, net | 1,319,260 | — | 1,399,490 | — | 1,399,490 | ||||||||||||||
Derivative liabilities | 20,734 | — | 743 | — | 743 | ||||||||||||||
December 31, 2015 | |||||||||||||||||||
Financial assets | |||||||||||||||||||
HEI consolidated | |||||||||||||||||||
Money market funds | $ | 10 | $ | — | $ | 10 | $ | — | $ | 10 | |||||||||
Available-for-sale investment securities | 820,648 | — | 820,648 | — | 820,648 | ||||||||||||||
Stock in Federal Home Loan Bank | 10,678 | — | 10,678 | — | 10,678 | ||||||||||||||
Loans receivable, net | 4,570,412 | — | 4,639 | 4,744,886 | 4,749,525 | ||||||||||||||
Mortgage servicing rights | 8,884 | — | — | 11,790 | 11,790 | ||||||||||||||
Bank-owned life insurance | 138,139 | — | 138,139 | — | 138,139 | ||||||||||||||
Derivative assets | 22,616 | — | 385 | — | 385 | ||||||||||||||
Financial liabilities | |||||||||||||||||||
HEI consolidated | |||||||||||||||||||
Deposit liabilities | 5,025,254 | — | 5,024,500 | — | 5,024,500 | ||||||||||||||
Short-term borrowings—other than bank | 103,063 | — | 103,063 | — | 103,063 | ||||||||||||||
Other bank borrowings | 328,582 | — | 333,392 | — | 333,392 | ||||||||||||||
Long-term debt, net—other than bank* | 1,578,368 | — | 1,669,087 | — | 1,669,087 | ||||||||||||||
Derivative liabilities | 23,269 | 15 | 15 | — | 30 | ||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||||
Long-term debt, net* | 1,278,702 | — | 1,363,766 | — | 1,363,766 |
Estimated fair value | |||||||||||||||||||
(in thousands) | Carrying or notional amount | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||||
December 31, 2019 | |||||||||||||||||||
Financial assets | |||||||||||||||||||
HEI consolidated | |||||||||||||||||||
Available-for-sale investment securities | $ | 1,232,826 | $ | — | $ | 1,204,229 | $ | 28,597 | $ | 1,232,826 | |||||||||
Held-to-maturity investment securities | 139,451 | — | 143,467 | — | 143,467 | ||||||||||||||
Stock in Federal Home Loan Bank | 8,434 | — | 8,434 | — | 8,434 | ||||||||||||||
Loans, net | 5,080,107 | — | 12,295 | 5,145,242 | 5,157,537 | ||||||||||||||
Mortgage servicing rights | 9,101 | — | — | 12,379 | 12,379 | ||||||||||||||
Derivative assets | 25,179 | — | 300 | — | 300 | ||||||||||||||
Financial liabilities | |||||||||||||||||||
HEI consolidated | |||||||||||||||||||
Deposit liabilities | 769,825 | — | 765,976 | — | 765,976 | ||||||||||||||
Short-term borrowings—other than bank | 185,710 | — | 185,710 | — | 185,710 | ||||||||||||||
Other bank borrowings | 115,110 | — | 115,107 | — | 115,107 | ||||||||||||||
Long-term debt, net—other than bank | 1,964,365 | 2,156,927 | 2,156,927 | ||||||||||||||||
Derivative liabilities | 51,375 | 33 | 2,185 | — | 2,218 | ||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||||
Short-term borrowings | 88,987 | — | 88,987 | — | 88,987 | ||||||||||||||
Long-term debt, net | 1,497,667 | — | 1,670,189 | — | 1,670,189 | ||||||||||||||
December 31, 2018 | |||||||||||||||||||
Financial assets | |||||||||||||||||||
HEI consolidated | |||||||||||||||||||
Available-for-sale investment securities | $ | 1,388,533 | $ | — | $ | 1,364,897 | $ | 23,636 | $ | 1,388,533 | |||||||||
Held-to-maturity investment securities | 141,875 | — | 142,057 | — | 142,057 | ||||||||||||||
Stock in Federal Home Loan Bank | 9,958 | — | 9,958 | — | 9,958 | ||||||||||||||
Loans, net | 4,792,707 | — | 1,809 | 4,800,244 | 4,802,053 | ||||||||||||||
Mortgage servicing rights | 8,062 | — | — | 13,618 | 13,618 | ||||||||||||||
Derivative assets | 10,180 | — | 91 | — | 91 | ||||||||||||||
Financial liabilities | |||||||||||||||||||
HEI consolidated | |||||||||||||||||||
Deposit liabilities | 827,841 | — | 817,667 | — | 817,667 | ||||||||||||||
Short-term borrowings—other than bank | 73,992 | — | 73,992 | — | 73,992 | ||||||||||||||
Other bank borrowings | 110,040 | — | 110,037 | — | 110,037 | ||||||||||||||
Long-term debt, net—other than bank | 1,879,641 | — | 1,904,261 | — | 1,904,261 | ||||||||||||||
Derivative liabilities | 34,132 | 34 | 596 | — | 630 | ||||||||||||||
Hawaiian Electric consolidated | |||||||||||||||||||
Short-term borrowings | 25,000 | — | 25,000 | — | 25,000 | ||||||||||||||
Long-term debt, net | 1,418,802 | — | 1,443,968 | — | 1,443,968 |
December 31 | 2019 | 2018 | |||||||||||||||||||||
Fair value measurements using | Fair value measurements using | ||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Available-for-sale investment securities (bank segment) | |||||||||||||||||||||||
Mortgage-backed securities — issued or guaranteed by U.S. Government agencies or sponsored agencies | $ | — | $ | 1,026,385 | $ | — | $ | — | $ | 1,161,416 | $ | — | |||||||||||
U.S. Treasury and federal agency obligations | — | 117,787 | — | — | 154,349 | — | |||||||||||||||||
Corporate bonds | — | 60,057 | — | — | 49,132 | — | |||||||||||||||||
Mortgage revenue bonds | — | — | 28,597 | — | — | 23,636 | |||||||||||||||||
$ | — | $ | 1,204,229 | $ | 28,597 | $ | — | $ | 1,364,897 | $ | 23,636 | ||||||||||||
Derivative assets | |||||||||||||||||||||||
Interest rate lock commitments (bank segment)1 | $ | — | $ | 297 | $ | — | $ | — | $ | 91 | $ | — | |||||||||||
Forward commitments (bank segment)1 | — | 3 | — | — | — | — | |||||||||||||||||
$ | — | $ | 300 | $ | — | $ | — | $ | 91 | $ | — | ||||||||||||
Derivative liabilities | |||||||||||||||||||||||
Interest rate lock commitments (bank segment)1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Forward commitments (bank segment)1 | 33 | 12 | — | 34 | 9 | — | |||||||||||||||||
Interest rate swap (Other segment)2 | — | 2,173 | — | — | 587 | — | |||||||||||||||||
$ | 33 | $ | 2,185 | $ | — | $ | 34 | $ | 596 | $ | — |
December 31 | 2016 | 2015 | |||||||||||||||||||||
Fair value measurements using | Fair value measurements using | ||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Money market funds (“other” segment) | $ | — | $ | 13,085 | $ | — | $ | — | $ | 10 | $ | — | |||||||||||
Available-for-sale investment securities (bank segment) | |||||||||||||||||||||||
Mortgage-related securities-FNMA, FHLMC and GNMA | $ | — | $ | 897,474 | $ | — | $ | — | $ | 607,689 | $ | — | |||||||||||
U.S. Treasury and federal agency obligations | — | 192,281 | — | — | 212,959 | — | |||||||||||||||||
Mortgage revenue bond | — | — | 15,427 | — | — | — | |||||||||||||||||
$ | — | $ | 1,089,755 | $ | 15,427 | $ | — | $ | 820,648 | $ | — | ||||||||||||
Derivative assets (bank segment) 1 | |||||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | 445 | $ | — | $ | — | $ | 384 | $ | — | |||||||||||
Forward commitments | — | 8 | — | — | 1 | — | |||||||||||||||||
$ | — | $ | 453 | $ | — | $ | — | $ | 385 | $ | — | ||||||||||||
Derivative liabilities | |||||||||||||||||||||||
Interest rate lock commitments (bank segment) 1 | $ | — | $ | 24 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Forward commitments (bank segment) 1 | 129 | 56 | — | 15 | 15 | — | |||||||||||||||||
Window forward contracts (electric utility segment)2 | — | 743 | — | — | — | — | |||||||||||||||||
$ | 129 | $ | 823 | $ | — | $ | 15 | $ | 15 | $ | — |
Derivatives are |
(in thousands) | 2019 | 2018 | ||||
Mortgage revenue bonds | ||||||
Balance, January 1 | $ | 23,636 | $ | 15,427 | ||
Principal payments received | — | — | ||||
Purchases | 4,961 | 8,209 | ||||
Unrealized gain (loss) included in other comprehensive income | — | — | ||||
Balance, December 31 | $ | 28,597 | $ | 23,636 |
(in thousands) | Mortgage revenue bond | ||
Balance at December 31, 2015 | $ | — | |
Principal payments received | — | ||
Purchases | 15,427 | ||
Unrealized gain (loss) included in other comprehensive income | — | ||
Balance at December 31, 2016 | $ | 15,427 |
Fair value measurements using | |||||||||||||||
(in thousands) | Balance | Level 1 | Level 2 | Level 3 | |||||||||||
December 31, 2019 | |||||||||||||||
Loans | $ | 25 | $ | — | $ | — | $ | 25 | |||||||
December 31, 2018 | |||||||||||||||
Loans | 77 | — | — | 77 | |||||||||||
Real estate acquired in settlement of loans | 186 | — | — | 186 |
Fair value measurements using | |||||||||||||||
(in thousands) | Balance | Level 1 | Level 2 | Level 3 | |||||||||||
December 31, 2016 | |||||||||||||||
Loans | $ | 2,767 | $ | — | $ | — | $ | 2,767 | |||||||
Real estate acquired in settlement of loans | 1,189 | — | — | 1,189 | |||||||||||
December 31, 2015 | |||||||||||||||
Loans | 178 | — | — | 178 | |||||||||||
Real estate acquired in settlement of loans | 1,030 | — | — | 1,030 |
Significant unobservable input value (1) | |||||||||||
(dollars in thousands) | Fair value | Valuation technique | Significant unobservable input | Range | Weighted Average | ||||||
December 31, 2019 | |||||||||||
Residential land | $ | 25 | Fair value of property or collateral | Appraised value less 7% selling cost | N/A (2) | N/A (2) | |||||
Total loans | $ | 25 | |||||||||
December 31, 2018 | |||||||||||
Home equity lines of credit | 77 | Fair value of property or collateral | Appraised value less 7% selling cost | N/A (2) | N/A (2) | ||||||
Total loans | $ | 77 | |||||||||
Real estate acquired in settlement of loans | $ | 186 | Fair value of property or collateral | Appraised value less 7% selling cost | N/A (2) | N/A (2) |
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. |
Note 17· |
HEI consolidated | Hawaiian Electric consolidated | ||||||||||||||||||||||
(in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||
HMSA costs | $ | 28 | $ | 30 | $ | 25 | $ | 22 | $ | 23 | $ | 20 | |||||||||||
HMSA expense* | 20 | 21 | 18 | 14 | 14 | 13 | |||||||||||||||||
HDS costs | 3 | 3 | 3 | 2 | 2 | 2 | |||||||||||||||||
HDS expense* | 2 | 2 | 2 | 1 | 1 | 1 |
Quarters ended | Years ended | Quarters ended | Years ended | |||||||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | March 31 | June 30 | Sept. 30 | Dec. 31 | December 31 | March 31 | June 30 | Sept. 30 | Dec. 31 | December 31 | ||||||||||||||||||||||||||||
HEI consolidated | ||||||||||||||||||||||||||||||||||||||
20161 | ||||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||
Revenues | $ | 661,615 | $ | 715,485 | $ | 771,535 | $ | 725,966 | $ | 2,874,601 | ||||||||||||||||||||||||||||
Operating income1 | 77,937 | 72,634 | 97,308 | 100,795 | 348,674 | |||||||||||||||||||||||||||||||||
Net income1 | 46,161 | 42,985 | 63,890 | 66,736 | 219,772 | |||||||||||||||||||||||||||||||||
Net income for common stock1 | 45,688 | 42,512 | 63,419 | 66,263 | 217,882 | |||||||||||||||||||||||||||||||||
Basic earnings per common share 1,2 | 0.42 | 0.39 | 0.58 | 0.61 | 2.00 | |||||||||||||||||||||||||||||||||
Diluted earnings per common share 1,3 | 0.42 | 0.39 | 0.58 | 0.61 | 1.99 | |||||||||||||||||||||||||||||||||
Dividends per common share | 0.32 | 0.32 | 0.32 | 0.32 | 1.28 | |||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||
Revenues | $ | 550,960 | $ | 566,244 | $ | 646,055 | $ | 617,395 | $ | 2,380,654 | $ | 645,874 | $ | 685,277 | $ | 768,048 | $ | 761,650 | $ | 2,860,849 | ||||||||||||||||||
Operating income | 68,851 | 85,455 | 105,442 | 88,427 | 348,175 | 71,889 | 78,799 | 98,064 | 84,604 | 333,356 | ||||||||||||||||||||||||||||
Net income | 32,825 | 44,601 | 127,613 | 45,107 | 250,146 | 40,720 | 46,527 | 66,371 | 50,046 | 203,664 | ||||||||||||||||||||||||||||
Net income for common stock | 32,352 | 44,128 | 127,142 | 44,634 | 248,256 | 40,247 | 46,054 | 65,900 | 49,573 | 201,774 | ||||||||||||||||||||||||||||
Basic earnings per common share 2 | 0.30 | 0.41 | 1.17 | 0.41 | 2.30 | 0.37 | 0.42 | 0.61 | 0.46 | 1.85 | ||||||||||||||||||||||||||||
Diluted earnings per common share 3 | 0.30 | 0.41 | 1.17 | 0.41 | 2.29 | 0.37 | 0.42 | 0.60 | 0.45 | 1.85 | ||||||||||||||||||||||||||||
Dividends per common share | 0.31 | 0.31 | 0.31 | 0.31 | 1.24 | 0.31 | 0.31 | 0.31 | 0.31 | 1.24 | ||||||||||||||||||||||||||||
Market price per common share 4 | ||||||||||||||||||||||||||||||||||||||
High | 32.69 | 34.98 | 33.57 | 34.08 | 34.98 | |||||||||||||||||||||||||||||||||
Low | 27.30 | 31.35 | 29.14 | 28.31 | 27.30 | |||||||||||||||||||||||||||||||||
20151 | ||||||||||||||||||||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||
Revenues | $ | 637,862 | $ | 623,912 | $ | 717,176 | $ | 624,032 | $ | 2,602,982 | $ | 578,495 | $ | 633,784 | $ | 688,330 | $ | 645,333 | $ | 2,545,942 | ||||||||||||||||||
Operating income | 69,506 | 72,730 | 97,095 | 83,222 | 322,553 | 56,560 | 55,694 | 71,793 | 70,331 | 254,378 | ||||||||||||||||||||||||||||
Net income | 32,339 | 35,491 | 51,144 | 42,793 | 161,767 | 32,625 | 33,073 | 47,277 | 45,860 | 158,835 | ||||||||||||||||||||||||||||
Net income for common stock | 31,866 | 35,018 | 50,673 | 42,320 | 159,877 | 32,126 | 32,574 | 46,779 | 45,361 | 156,840 | ||||||||||||||||||||||||||||
Basic earnings per common share 2 | 0.31 | 0.33 | 0.47 | 0.39 | 1.50 | |||||||||||||||||||||||||||||||||
Diluted earnings per common share 3 | 0.31 | 0.33 | 0.47 | 0.39 | 1.50 | |||||||||||||||||||||||||||||||||
Dividends per common share | 0.31 | 0.31 | 0.31 | 0.31 | 1.24 | |||||||||||||||||||||||||||||||||
Market price per common share 4 | ||||||||||||||||||||||||||||||||||||||
High | 34.86 | 32.58 | 31.28 | 30.29 | 34.86 | |||||||||||||||||||||||||||||||||
Low | 31.75 | 29.62 | 27.02 | 27.45 | 27.02 | |||||||||||||||||||||||||||||||||
Hawaiian Electric consolidated | ||||||||||||||||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||
Revenues | $ | 482,052 | $ | 495,395 | $ | 572,253 | $ | 544,668 | $ | 2,094,368 | $ | 570,427 | $ | 608,126 | $ | 687,409 | $ | 680,563 | 2,546,525 | |||||||||||||||||||
Operating income | 55,326 | 70,686 | 89,812 | 68,644 | 284,468 | 51,369 | 55,144 | 74,036 | 61,112 | 241,661 | ||||||||||||||||||||||||||||
Net income | 25,866 | 36,356 | 47,472 | 34,618 | 144,312 | 27,974 | 31,668 | 50,210 | 35,796 | 145,648 | ||||||||||||||||||||||||||||
Net income for common stock | 25,367 | 35,857 | 46,974 | 34,119 | 142,317 | 27,475 | 31,169 | 49,712 | 35,297 | 143,653 | ||||||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||||||||
Revenues | 573,442 | 558,163 | 648,127 | 555,434 | 2,335,166 | |||||||||||||||||||||||||||||||||
Operating income | 57,636 | 66,161 | 82,657 | 67,662 | 274,116 | |||||||||||||||||||||||||||||||||
Net income | 27,373 | 33,340 | 43,504 | 33,492 | 137,709 | |||||||||||||||||||||||||||||||||
Net income for common stock | 26,874 | 32,841 | 43,006 | 32,993 | 135,714 |
1 |
2 | The quarterly basic earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter. |
3 | The quarterly diluted earnings per common share are based upon the weighted-average number of shares of common stock outstanding in each quarter plus the dilutive incremental shares at quarter end. |
165 |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
(1) | is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and |
(2) | is accumulated and communicated to HEI management, including HEI’s CEO and CFO, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. |
(1) | is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and |
(2) | is accumulated and communicated to Hawaiian Electric management, including Hawaiian Electric’s CEO and CFO, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. |
ITEM 9B. | OTHER INFORMATION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Plan category | (a) Number of securities to be issued upon exercise of outstanding options, warrants and rights (1) | (b) Weighted-average exercise price of outstanding options, warrants and rights | (c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (2) | (a) Number of securities to be issued upon exercise of outstanding options, warrants and rights (1) | (b) Weighted-average exercise price of outstanding options, warrants and rights | (c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (2) | ||||||||||||
Equity compensation plans approved by shareholders | 266,754 | $ | — | 3,278,383 | 706,851 | $ | — | 2,759,090 | ||||||||||
Equity compensation plans not approved by shareholders | — | — | — | — | — | — | ||||||||||||
Total | 266,754 | $ | — | 3,278,383 | 706,851 | $ | — | 2,759,090 |
EIP | ||
Restricted stock units plus estimated compounded dividend equivalents (if applicable) * | ||
Shares to be issued in February | ||
* | Under the amended EIP as of December 31, |
(2) | This represents the number of shares available as of December 31, |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
Page/s in Form 10-K | Page/s in Form 10-K | |||||||
HEI | Hawaiian Electric | HEI | Hawaiian Electric | |||||
Schedule I | Condensed Financial Information of Registrant, Hawaiian Electric Industries, Inc. (Parent Company) at December 31, 2016 and 2015 and for the years ended December 31, 2016, 2015 and 2014 | NA | Condensed Financial Information of Registrant, Hawaiian Electric Industries, Inc. (Parent Company) at December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017 | NA | ||||
Schedule II | Valuation and Qualifying Accounts, Hawaiian Electric Industries, Inc. and subsidiaries and Hawaiian Electric Company, Inc. and subsidiaries for the years ended December 31, 2016, 2015 and 2014 | Valuation and Qualifying Accounts, Hawaiian Electric Industries, Inc. and subsidiaries and Hawaiian Electric Company, Inc. and subsidiaries for the years ended December 31, 2019, 2018 and 2017 | ||||||
NA Not applicable. |
ITEM 16. | FORM 10-K SUMMARY |
December 31 | 2019 | 2018 | |||||
(dollars in thousands) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 953 | $ | 3,742 | |||
Accounts receivable | 779 | 2,604 | |||||
Notes receivable from subsidiaries | 22,598 | 20,789 | |||||
Property, plant and equipment, net | 2,931 | 3,456 | |||||
Deferred income tax assets | 10,754 | 10,147 | |||||
Other assets and intercompany receivables | 21,770 | 11,963 | |||||
Investments in subsidiaries, at equity | 2,761,802 | 2,605,038 | |||||
Total assets | $ | 2,821,587 | $ | 2,657,739 | |||
Liabilities and shareholders’ equity | |||||||
Liabilities | |||||||
Accounts payable | $ | 1,509 | $ | 2,001 | |||
Interest payable | 3,041 | 3,476 | |||||
Notes payable to subsidiaries | — | 34 | |||||
Commercial paper | 96,723 | 48,992 | |||||
Long-term debt, net | 399,064 | 398,874 | |||||
Retirement benefits liability | 29,367 | 29,565 | |||||
Other | 11,623 | 12,517 | |||||
Total liabilities | 541,327 | 495,459 | |||||
Shareholders’ equity | |||||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | — | — | |||||
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 108,973,328 shares and 108,879,245 shares at December 31, 2019 and 2018, respectively | 1,678,257 | 1,669,267 | |||||
Retained earnings | 622,042 | 543,623 | |||||
Accumulated other comprehensive loss | (20,039 | ) | (50,610 | ) | |||
Total shareholders’ equity | 2,280,260 | 2,162,280 | |||||
Total liabilities and shareholders’ equity | $ | 2,821,587 | $ | 2,657,739 |
December 31 | 2016 | 2015 | |||||
(dollars in thousands) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 14,924 | $ | 55,116 | |||
Accounts receivable | 3,788 | 5,459 | |||||
Property, plant and equipment, net | 4,143 | 4,514 | |||||
Deferred income tax assets | 17,280 | 16,715 | |||||
Other assets | 9,858 | 11,650 | |||||
Investments in subsidiaries, at equity | 2,383,405 | 2,293,679 | |||||
Total assets | $ | 2,433,398 | $ | 2,387,133 | |||
Liabilities and shareholders’ equity | |||||||
Liabilities | |||||||
Accounts payable | $ | 379 | $ | 1,254 | |||
Interest payable | 1,735 | 2,450 | |||||
Notes payable to subsidiaries | 5,373 | 5,946 | |||||
Commercial paper | — | 103,063 | |||||
Long-term debt, net | 299,759 | 299,666 | |||||
Retirement benefits liability | 33,939 | 31,704 | |||||
Other | 25,460 | 15,410 | |||||
Total liabilities | 366,645 | 459,493 | |||||
Shareholders’ equity | |||||||
Preferred stock, no par value, authorized 10,000,000 shares; issued: none | — | — | |||||
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding: 108,583,413 shares and 107,460,406 shares at December 31, 2016 and 2015, respectively | 1,660,910 | 1,629,136 | |||||
Retained earnings | 438,972 | 324,766 | |||||
Accumulated other comprehensive loss | (33,129 | ) | (26,262 | ) | |||
Total shareholders' equity | 2,066,753 | 1,927,640 | |||||
Total liabilities and shareholders' equity | $ | 2,433,398 | $ | 2,387,133 |
Years ended December 31 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Revenues | $ | 647 | $ | 327 | $ | 303 | $ | 777 | $ | 429 | $ | 798 | ||||||||||
Equity in net income of subsidiaries | 199,485 | 190,033 | 188,727 | 246,005 | 226,972 | 187,097 | ||||||||||||||||
Expenses: | ||||||||||||||||||||||
Operating, administrative and general | 18,701 | 34,350 | 20,921 | 19,195 | 19,515 | 16,578 | ||||||||||||||||
Depreciation of property, plant and equipment | 566 | 576 | 575 | 570 | 597 | 548 | ||||||||||||||||
Taxes, other than income taxes | 4,726 | 440 | 469 | 570 | 509 | 496 | ||||||||||||||||
Total expenses | 23,993 | 35,366 | 21,965 | 20,335 | 20,621 | 17,622 | ||||||||||||||||
Income before merger termination fee, interest expense and income (taxes) benefits | 176,139 | 154,994 | 167,065 | |||||||||||||||||||
Merger termination fee | 90,000 | — | — | |||||||||||||||||||
Income before interest expense and income (taxes) benefits | 266,139 | 154,994 | 167,065 | 226,447 | 206,780 | 170,273 | ||||||||||||||||
Retirement defined benefits expense—other than service costs | 442 | 674 | 1,119 | |||||||||||||||||||
Interest expense | 9,037 | 10,788 | 11,599 | 17,930 | 12,664 | 9,389 | ||||||||||||||||
Income before income (taxes) benefits | 257,102 | 144,206 | 155,466 | |||||||||||||||||||
Income (taxes) benefits | (8,846 | ) | 15,671 | 13,047 | ||||||||||||||||||
Income before income benefits | 208,075 | 193,442 | 159,765 | |||||||||||||||||||
Income benefits | 9,807 | 8,332 | 5,532 | |||||||||||||||||||
Net income | $ | 248,256 | $ | 159,877 | $ | 168,513 | $ | 217,882 | $ | 201,774 | $ | 165,297 |
Years ended December 31 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 191,306 | $ | 97,141 | $ | 100,794 | $ | 131,120 | $ | 135,470 | $ | 99,600 | ||||||||||
Cash flows from investing activities | ||||||||||||||||||||||
Increase in note receivable from subsidiary | (1,187 | ) | (20,596 | ) | (70,000 | ) | ||||||||||||||||
Decrease in note receivable from subsidiary | — | — | 66,391 | |||||||||||||||||||
Capital expenditures | (212 | ) | (173 | ) | (74 | ) | (47 | ) | (143 | ) | (317 | ) | ||||||||||
Investments in subsidiaries | (24,000 | ) | — | (40,000 | ) | (38,935 | ) | (71,970 | ) | (22,353 | ) | |||||||||||
Other | 1 | — | — | (1,001 | ) | 140 | (177 | ) | ||||||||||||||
Net cash used in investing activities | (24,211 | ) | (173 | ) | (40,074 | ) | (41,170 | ) | (92,569 | ) | (26,456 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||||||||||
Net increase (decrease) in notes payable to subsidiaries with original maturities of three months or less | (618 | ) | 87 | (222 | ) | — | (30 | ) | 98 | |||||||||||||
Net increase (decrease) in short-term borrowings with original maturities of three months or less | (103,063 | ) | (15,909 | ) | 13,490 | 47,731 | (14,000 | ) | 62,993 | |||||||||||||
Proceeds from issuance of short-term debt | — | — | 125,000 | |||||||||||||||||||
Repayment of short-term debt | — | (50,000 | ) | (75,000 | ) | |||||||||||||||||
Proceeds from issuance of long-term debt | 75,000 | — | 125,000 | — | 150,000 | 150,000 | ||||||||||||||||
Repayment of long-term debt | (75,000 | ) | — | (100,000 | ) | — | — | (200,000 | ) | |||||||||||||
Excess tax benefits from share-based payment arrangements | 404 | 978 | 277 | |||||||||||||||||||
Net proceeds from issuance of common stock | 13,220 | 104,435 | 26,898 | |||||||||||||||||||
Withheld shares for employee taxes on vested share-based compensation | (997 | ) | (996 | ) | (3,828 | ) | ||||||||||||||||
Common stock dividends | (117,274 | ) | (131,765 | ) | (126,458 | ) | (139,463 | ) | (134,987 | ) | (134,873 | ) | ||||||||||
Other | 44 | 46 | — | (10 | ) | (848 | ) | (756 | ) | |||||||||||||
Net cash used in financing activities | (207,287 | ) | (42,128 | ) | (61,015 | ) | (92,739 | ) | (50,861 | ) | (76,366 | ) | ||||||||||
Net increase (decrease) in cash and equivalents | (40,192 | ) | 54,840 | (295 | ) | |||||||||||||||||
Net decrease in cash and equivalents | (2,789 | ) | (7,960 | ) | (3,222 | ) | ||||||||||||||||
Cash and cash equivalents, January 1 | 55,116 | 276 | 571 | 3,742 | 11,702 | 14,924 | ||||||||||||||||
Cash and cash equivalents, December 31 | $ | 14,924 | $ | 55,116 | $ | 276 | $ | 953 | $ | 3,742 | $ | 11,702 |
December 31 | 2016 | 2015 | |||||
(dollars in thousands) | |||||||
HEI Term loan LIBOR + .75%, due 2017 | $ | 125,000 | $ | 125,000 | |||
HEI Term loan LIBOR + .75%, due 2018 | 75,000 | — | |||||
HEI senior note 4.41%, paid in 2016 | — | 75,000 | |||||
HEI senior note 5.67%, due 2021 | 50,000 | 50,000 | |||||
HEI senior note 3.99%, due 2023 | 50,000 | 50,000 | |||||
Less unamortized debt issuance costs | (241 | ) | (334 | ) | |||
Long-term debt, net | $ | 299,759 | $ | 299,666 |
December 31 | 2019 | 2018 | |||||
(dollars in thousands) | |||||||
HEI 2.99% term loan, due 2022 | $ | 150,000 | $ | 150,000 | |||
HEI 5.67% senior note, due 2021 | 50,000 | 50,000 | |||||
HEI 3.99% senior note, due 2023 | 50,000 | 50,000 | |||||
HEI 4.58% senior notes, due 2025 | 50,000 | 50,000 | |||||
HEI 4.72% senior notes, due 2028 | 100,000 | 100,000 | |||||
Less unamortized debt issuance costs | (936 | ) | (1,126 | ) | |||
Long-term debt, net | $ | 399,064 | $ | 398,874 |
Col. A | Col. B | Col. C | Col. D | Col. E | Col. B | Col. C | Col. D | Col. E | ||||||||||||||||||||||||||||||||||
(in thousands) | Additions | Additions | ||||||||||||||||||||||||||||||||||||||||
Description | Balance at begin- ning of period | Charged to costs and expenses | Charged to other accounts | Deductions | Balance at end of period | Balance at begin- ning of period | Charged to costs and expenses | Charged to other accounts | Deductions | Balance at end of period | ||||||||||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts – electric utility | $ | 1,699 | $ | 2,383 | $ | 877 | (a) | $ | 3,838 | (b),(c) | $ | 1,121 | $ | 1,480 | $ | 2,106 | $ | 795 | (a) | $ | 3,004 | (b) | $ | 1,377 | ||||||||||||||||||
Allowance for uncollectible interest – bank | $ | 1,679 | $ | — | $ | 155 | $ | — | $ | 1,834 | $ | 373 | $ | — | $ | (99 | ) | $ | — | $ | 274 | |||||||||||||||||||||
Allowance for losses for loans receivable – bank | $ | 50,038 | $ | 16,763 | (d) | $ | 2,977 | (a) | $ | 14,245 | (b) | $ | 55,533 | |||||||||||||||||||||||||||||
Deferred tax valuation allowance – HEI | $ | 54 | $ | — | $ | — | $ | 16 | $ | 38 | ||||||||||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for losses for loans – bank | $ | 52,119 | $ | 23,480 | (c) | $ | 6,418 | (a) | $ | 28,662 | (b) | $ | 53,355 | |||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts – electric utility | $ | 1,959 | $ | 3,653 | $ | 977 | (a) | $ | 4,890 | (b) | $ | 1,699 | $ | 1,178 | $ | 2,474 | $ | (4,099 | ) | (a), (d) | $ | (1,927 | ) | (b),(d) | $ | 1,480 | ||||||||||||||||
Allowance for uncollectible interest – bank | $ | 1,514 | $ | — | $ | 165 | $ | — | $ | 1,679 | $ | 367 | $ | — | $ | 6 | $ | — | $ | 373 | ||||||||||||||||||||||
Allowance for losses for loans receivable – bank | $ | 45,618 | $ | 6,275 | (d) | $ | 4,571 | (a) | $ | 6,426 | (b) | $ | 50,038 | |||||||||||||||||||||||||||||
Allowance for mortgage-servicing assets – bank | $ | 209 | $ | — | $ | (205 | ) | $ | 4 | $ | — | |||||||||||||||||||||||||||||||
Deferred tax valuation allowance – HEI | $ | 45 | $ | 9 | $ | — | $ | — | $ | 54 | ||||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for losses for loans – bank | $ | 53,637 | $ | 14,745 | (c) | $ | 4,254 | (a) | $ | 20,517 | (b) | $ | 52,119 | |||||||||||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts – electric utility | $ | 2,329 | $ | 1,384 | $ | 1,613 | (a) | $ | 3,367 | (b) | $ | 1,959 | $ | 1,121 | $ | 1,810 | $ | 785 | (a) | $ | 2,538 | (b),(d) | $ | 1,178 | ||||||||||||||||||
Allowance for uncollectible interest – bank | $ | 1,661 | $ | — | $ | — | $ | 147 | $ | 1,514 | $ | 1,834 | $ | — | $ | — | $ | 1,467 | $ | 367 | ||||||||||||||||||||||
Allowance for losses for loans receivable – bank | $ | 40,116 | $ | 6,126 | (d) | $ | 4,926 | (a) | $ | 5,550 | (b) | $ | 45,618 | |||||||||||||||||||||||||||||
Allowance for mortgage-servicing assets – bank | $ | 251 | $ | 53 | $ | — | $ | 95 | $ | 209 | ||||||||||||||||||||||||||||||||
Allowance for losses for loans – bank | $ | 55,533 | $ | 10,901 | (c) | $ | 4,016 | (a) | $ | 16,813 | (b) | $ | 53,637 | |||||||||||||||||||||||||||||
Deferred tax valuation allowance – HEI | $ | 278 | $ | 17 | $ | — | $ | 250 | $ | 45 | $ | 38 | $ | — | $ | — | $ | 38 | $ | — |
(a) | Primarily recoveries. |
(b) | Bad debts charged off. |
(c) | Represents provision for loan losses. |
(d) | Reclass (reversal) of allowance for one customer account into other long term |
Exhibit no. | Description | Form | File Number | Exhibit # | Filing date | |
HEI: | ||||||
3(i) | 8-K | 1-8503 | 3(i) | 5/6/09 | ||
3(ii) | 8-K | 1-8503 | 3.1 | 2/19/19 | ||
* | 4 | |||||
4.1 | Agreement to provide the SEC with instruments which define the rights of holders of certain long-term debt of HEI and its subsidiaries. | 10-K | 1-8503 | 4.1 | 3/31/93 | |
4.2 | 8-K | 1-8503 | 4(a) | 3/28/11 | ||
4.2(a) | 8-K | 1-8503 | 4(a) | 3/6/13 | ||
4.3 | 10-K | 1-8503 | 4.5 | 2/19/13 | ||
4.3(a) | S-8 | 333- 232360 | 4.4 | 6/26/19 | ||
4.3(b) | S-8 | 333- 232360 | 4.5 | 6/26/19 | ||
4.3(c) | S-8 | 333- 232360 | 4.6 | 6/26/19 | ||
4.3(d) | S-8 | 333- 232360 | 4.7 | 6/26/19 | ||
* | 4.3(e) | |||||
4.3(f) | 10-Q | 1-8503 | 4.2 | 11/1/19 | ||
4.4 | 10-Q | 1-8503 | 4 | 11/8/12 | ||
4.4(a) | 10-K | 1-8503 | 4.6(a) | 2/19/13 | ||
4.4(b) | 10-Q | 1-8503 | 4 | 11/6/14 | ||
4.4(c) | 10-Q | 1-8503 | 4 | 5/6/15 | ||
4.4(d) | 10-K | 1-8503 | 4.4(d) | 3/1/18 | ||
4.4(e) | 10-Q | 1-8503 | 4 | 11/2/17 | ||
4.4(f) | 10-K | 1-8503 | 4.4(f) | 3/1/18 | ||
4.4(g) | 10-K | 1-8503 | 4.4(g) | 3/1/18 |
Exhibit no. | Description | Form | File Number | Exhibit # | Filing date | |
4.4(h) | 10-Q | 1-8503 | 4 | 8/3/18 | ||
4.4(i) | S-8 | 333- 232360 | 4.15 | 6/26/19 | ||
* | 4.4(j) | |||||
4.5 | S-3 | 333- 220842 | 4.3 | 10/5/17 | ||
4.5(a) | S-3 | 333- 234591 | 4.3 | 11/8/19 | ||
4.6 | 10-K | 1-8503 | 4.8 | 2/19/13 | ||
4.6(a) | 10-K | 1-8503 | 4.7(a) | 2/23/16 | ||
4.6(b) | S-8 | 333- 232361 | 4.5 | 6/26/19 | ||
* | 4.6(c) | |||||
10.1 | 10-K | 1-8503 | 10.1 | 2/28/07 | ||
10.2 | Regulatory Capital Maintenance/Dividend Agreement dated May 26, 1988, between HEI, HEIDI and the Federal Savings and Loan Insurance Corporation (by the Federal Home Loan Bank of Seattle). | 8-K | 1-8503 | (28)-2 | 5/26/88** | |
10.3 | OTS letter regarding release from Part II.B. of the Regulatory Capital Maintenance/Dividend Agreement dated May 26, 1988. | 10-K | 1-8503 | 10.3(a) | 3/31/93 | |
HEI Exhibits 10.4 through 10.21 are management contracts or compensatory plans or arrangements required to be filed as exhibits pursuant to Item 15(b) of this report. HEI Exhibits 10.4 through 10.19 are also management contracts or compensatory plans or arrangements with Hawaiian Electric participants. | ||||||
10.4 | 10-K | 1-8503 | 10.4 | 2/19/13 | ||
10.5 | 10-K | 1-8503 | 10.5 | 2/28/19 | ||
10.6 | 10-K | 1-8503 | 10.6 | 2/18/11 | ||
10.7 | Proxy (DEF 14A) | 1-8503 | Appendix D | 3/25/14 | ||
10.7(a) | S-8 | 333- 166737 | 4.4 | 5/11/10 | ||
10.7(b) | S-8 | 333- 166737 | 4.5 | 5/11/10 | ||
10.7(c) | S-8 | 333- 166737 | 4.6 | 5/11/10 | ||
10.7(d) | S-8 | 333- 166737 | 4.7 | 5/11/10 | ||
10.7(e) | 10-K | 1-8503 | 10.7(e) | 2/24/17 | ||
10.8 | 10-K | 1-8503 | 10.8 | 2/19/13 | ||
10.9 | 10-Q | 1-8503 | 10.3 | 11/5/08 | ||
10.9(a) | 10-K | 1-8503 | 10.9(a) | 2/27/09 | ||
10.10 | 10-K | 1-8503 | 10.10 | 2/27/09 | ||
10.10(a) | 10-K | 1-8503 | 10.10(a) | 2/27/09 |
Exhibit no. | Description | Form | File Number | Exhibit # | Filing date | |
10.10(b) | 10-K | 1-8503 | 10.10(c) | 2/19/13 | ||
10.11 | 10-K | 1-8503 | 10.11 | 2/27/09 | ||
10.12 | Nonemployee Director Retirement Plan, effective as of October 1, 1989. | 10-K | 1-8503 | 10.15 | 3/27/90** | |
* | 10.13 | |||||
10.14 | 10-K | 1-8503 | 10.5 | 2/28/19 | ||
10.15 | 10-Q | 1-8503 | 10.5 | 11/5/08 | ||
10.16 | 10-Q | 1-8503 | 10.6 | 11/5/08 | ||
10.16(a) | 10-Q | 1-8503 | 10.1 | 11/5/09 | ||
10.17 | 10-Q | 1-8503 | 10 | 8/3/18 | ||
10.18 | 10-Q | 1-8503 | 10.2 | 11/5/08 | ||
10.19 | 10-Q | 1-8503 | 10.1 | 11/8/12 | ||
10.20 | 10-Q | 1-8503 | 10.7 | 11/5/08 | ||
10.20(a) | 10-K | 1-8503 | 10.20(a) | 2/23/16 | ||
10.20(b) | 10-K | 1-8503 | 10.20(b) | 2/23/16 | ||
10.20(c) | 10-K | 1-8503 | 10.20(c) | 2/23/16 | ||
10.20(d) | 10-K | 1-8503 | 10.20(d) | 3/1/18 | ||
* | 10.20(e) | |||||
10.21 | 10-Q | 1-8503 | 10.8 | 11/5/08 | ||
10.21(a) | 10-K | 1-8503 | 10.19(b) | 2/27/09 | ||
10.22 | 10-Q | 1-8503 | 10.1 | 8/3/17 | ||
* | 11 | |||||
* | 21.1 | |||||
* | 23.1 | |||||
* | 31.1 | |||||
* | 31.2 | |||||
* | 32.1 | |||||
* | 101.INS | XBRL Instance Document. | ||||
* | 101.SCH | XBRL Taxonomy Extension Schema Document. | ||||
* | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
* | 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
Exhibit no. | Description | Form | File Number | Exhibit # | Filing date | |
* | 101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | ||||
* | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||
Hawaiian Electric: | ||||||
3(i).1 | Hawaiian Electric’s Certificate of Amendment of Articles of Incorporation. | 10-K | 1-4955 | 3.1 | 3/31/89 | |
3(i).2 | Articles of Amendment to Hawaiian Electric’s Amended Articles of Incorporation. | 10-K | 1-4955 | 3.1(b) | 3/27/90** | |
3(i).3 | Articles of Amendment to Hawaiian Electric’s Amended Articles of Incorporation. | 10-K | 1-4955 | 3(i).4 | 3/23/99 | |
3(i).4 | 10-Q | 1-4955 | 3(i).4 | 8/7/09 | ||
3(ii) | 8-K | 1-4955 | 3(ii) | 8/9/10 | ||
* | 4 | |||||
4.1 | 10-K | 1-4955 | 4.1 | 3/19/03 | ||
4.2 | 8-K | 1-4955 | 4(a) | 4/23/12 | ||
4.3 | 8-K | 1-4955 | 4(b) | 4/23/12 | ||
4.4 | 8-K | 1-4955 | 4(c) | 4/23/12 | ||
4.5 | 8-K | 1-4955 | 4 | 9/14/12 | ||
4.6 | 8-K | 1-4955 | 4(a) | 10/7/13 | ||
4.7 | 8-K | 1-4955 | 4(b) | 10/7/13 | ||
4.8 | 10-Q | 1-4955 | 4 | 11/7/13 | ||
4.9 | 8-K | 1-4955 | 4(a) | 10/16/15 | ||
4.10 | 8-K | 1-4955 | 4(b) | 10/16/15 | ||
4.11 | 8-K | 1-4955 | 4(c) | 10/16/15 | ||
4.12 | 8-K | 1-4955 | 4 | 12/19/16 | ||
10.1(a) | Power Purchase Agreement between Kalaeloa Partners, L.P., and Hawaiian Electric dated October 14, 1988. | 10-Q | 1-4955 | 10(a) | 11/14/88 | |
10.1(b) | Amendment No. 1 to Power Purchase Agreement between Hawaiian Electric and Kalaeloa Partners, L.P., dated June 15, 1989. | 10-Q | 1-4955 | 10(c) | 8/14/89 | |
10.1(c) | Lease Agreement between Kalaeloa Partners, L.P., as Lessor, and Hawaiian Electric, as Lessee, dated February 27, 1989. | 10-Q | 1-4955 | 10(d) | 8/14/89 | |
10.1(d) | Restated and Amended Amendment No. 2 to Power Purchase Agreement between Hawaiian Electric and Kalaeloa Partners, L.P., dated February 9, 1990. | 10-K | 1-4955 | 10.2(c) | 3/27/90** | |
10.1(e) | Amendment No. 3 to Power Purchase Agreement between Hawaiian Electric and Kalaeloa Partners, L.P., dated December 10, 1991. | 10-K | 1-4955 | 10.2(e) | 3/24/92 | |
10.1(f) | 10-Q | 1-4955 | 10.1 | 11/8/00 |
Exhibit no. | Description | Form | File Number | Exhibit # | Filing date | |
10.1(g) | 10-Q | 1-4955 | 10.3 | 11/5/04 | ||
10.1(h) | 10-Q | 1-4955 | 10.4 | 11/5/04 | ||
10.1(i) | 10-Q | 1-4955 | 10 | 11/4/16 | ||
10.2(a) | Power Purchase Agreement between AES Barbers Point, Inc. and Hawaiian Electric, entered into on March 25, 1988. | 10-Q | 1-4955 | 10(a) | 5/16/88 | |
10.2(b) | Agreement between Hawaiian Electric and AES Barbers Point, Inc., pursuant to letters dated May 10, 1988 and April 20, 1988. | 10-K | 1-4955 | 10.4 | 3/31/89 | |
10.2(c) | Amendment No. 1, entered into as of August 28, 1988, to Power Purchase Agreement between AES Barbers Point, Inc. and Hawaiian Electric. | 10-Q | 1-4955 | 10 | 11/13/89 | |
10.2(d) | Hawaiian Electric’s Conditional Notice of Acceptance to AES Barbers Point, Inc. dated January 15, 1990. | 10-K | 1-4955 | 13(c) | 3/27/90** | |
10.2(e) | 10-K | 1-4955 | 10.2(e) | 3/9/04 | ||
10.2(f) | 10-Q | 1-4955 | 10 | 5/10/18 | ||
10.3(a) | Purchase Power Contract between Hawaii Electric Light and Thermal Power Company dated March 24, 1986. | 10-Q | 1-4955 | 10(a) | 8/14/89 | |
10.3(b) | Firm Capacity Amendment between Hawaii Electric Light and Puna Geothermal Venture (assignee of AMOR VIII, who is the assignee of Thermal Power Company) dated July 28, 1989 to Purchase Power Contract between Hawaii Electric Light and Thermal Power Company dated March 24, 1986. | 10-Q | 1-4955 | 10(b) | 8/14/89 | |
10.3(c) | Amendment made in October 1993 to Purchase Power Contract between Hawaii Electric Light and Puna Geothermal Venture dated March 24, 1986, as amended. | 10-K | 1-4955 | 10.5(b) | 3/27/98 | |
10.3(d) | Third Amendment dated March 7, 1995 to the Purchase Power Contract between Hawaii Electric Light and Puna Geothermal Venture dated March 24, 1986, as amended. | 10-K | 1-4955 | 10.5(c) | 3/27/98 | |
10.3(e) | Performance Agreement and Fourth Amendment dated February 12, 1996 to the Purchase Power Contract between Hawaii Electric Light and Puna Geothermal Venture dated March 24, 1986, as amended. | 10-K | 1-4955 | 10.5(b) | 3/25/96 | |
10.3(f) | 10-K | 1-4955 | 10.4(f) | 2/17/12 | ||
10.3(g) | 10-K | 1-4955 | 10.4(g) | 2/17/12 | ||
* | 10.3(h) | |||||
10.4(a) | Power Purchase Agreement between Encogen Hawaii, L.P. and Hawaii Electric Light dated October 22, 1997 (but with the following attachments omitted: Attachment C, “Selected portions of the North American Electric Reliability Council Generating Availability Data System Data Reporting Instructions dated October 1996” and Attachment E, “Form of the Interconnection Agreement between Encogen Hawaii, L.P. and Hawaii Electric Light,” which is provided in final form as Exhibit 10.6(b)). | 10-K | 1-4955 | 10.7 | 3/27/98 | |
10.4(b) | Interconnection Agreement between Encogen Hawaii, L.P. and Hawaii Electric Light dated October 22, 1997. | 10-K | 1-4955 | 10.7(a) | 3/27/98 | |
10.4(c) | Amendment No. 1, executed on January 14, 1999, to Power Purchase Agreement between Encogen Hawaii, L.P. and Hawaii Electric Light dated October 22, 1997. | 10-K | 1-4955 | 10.7(b) | 3/23/99 | |
10.4(d) | 10-K | 1-4955 | 10.4(d) | 3/1/18 |
Exhibit no. | Description | Form | File Number | Exhibit # | Filing date | |
10.5 | 10-Q | 1-4955 | 10 | 5/7/19 | ||
10.6(a) | 10-K | 1-4955 | 10.13 | 3/23/01 | ||
10.6(b) | 10-K | 1-4955 | 10.13(b) | 2/19/13 | ||
10.7(a) | 10-K | 1-4955 | 10.14 | 3/23/01 | ||
10.7(b) | 10-K | 1-4955 | 10.14(b) | 2/19/13 | ||
10.8 | 10-K | 1-4955 | 10.11(a) | 3/1/18 | ||
10.9 | 10-Q | 1-4955 | 10.2 | 8/3/17 | ||
11 | Computation of Earnings Per Share of Common Stock (See note on Hawaiian Electric’s Item 6. Selected Financial Data). | |||||
* | 21.2 | |||||
* | 31.3 | |||||
* | 31.4 | |||||
* | 32.2 | |||||
* | 99.1 |
HAWAIIAN ELECTRIC INDUSTRIES, INC. | HAWAIIAN ELECTRIC COMPANY, INC. | |||||
(Registrant) | (Registrant) | |||||
By | /s/ | By | /s/ Tayne S. Y. Sekimura | |||
Tayne S. Y. Sekimura | ||||||
Executive Vice President and Chief Financial Officer | Senior Vice President and Chief Financial Officer | |||||
(Principal Financial | ||||||
Date: | February | Date: | February |
Signature | Title | |
/s/ Constance H. Lau | President & Chief Executive Officer of HEI and | |
Constance H. Lau | ||
( | ||
/s/ | President & Chief Executive Officer of Hawaiian Electric | |
Scott W. H. Seu | and Director of Hawaiian Electric | |
/s/ | Executive Vice President and Chief Financial Officer | |
/s/ Tayne S. Y. Sekimura | Senior Vice President and Chief Financial Officer | |
Tayne S. Y. Sekimura | ||
/s/ Paul K. Ito | Vice President, Tax, Controller and Treasurer | |
Paul K. Ito | of HEI (Principal Accounting Officer of | |
/s/ Patsy H. Nanbu | Controller of Hawaiian Electric | |
Patsy H. Nanbu | (Principal Accounting Officer of Hawaiian Electric) | |
Signature | Title | |
/s/ Kevin M. Burke | Director of Hawaiian Electric | |
Kevin M. Burke | ||
/s/ | Director of | |
/s/ Richard J. Dahl | Director of HEI | |
Richard J. Dahl | ||
/s/ Thomas B. Fargo | Director of HEI | |
Thomas B. Fargo | ||
/s/ Peggy Y. Fowler | Director of HEI | |
Peggy Y. Fowler | ||
/s/ Timothy E. Johns | ||
Timothy E. Johns | ||
/s/ Micah A. Kane | Director of | |
Micah A. Kane | ||
/s/ Bert A. Kobayashi, Jr. | Director of Hawaiian Electric | |
Bert A. Kobayashi, Jr. | ||
/s/ Mary G. Powell | Director of HEI | |
Mary G. Powell | ||
/s/ Keith P. Russell | Director of HEI | |
Keith P. Russell | ||
/s/ William James | Director of HEI | |
William James | ||
/s/ Kelvin H. Taketa | Director of | |
Kelvin H. Taketa | ||
/s/ Jeffrey N. Watanabe | Chairman of the Board of Directors of HEI | |
Jeffrey N. Watanabe |
Eva T. Zlotnicka |